Inflation slows in Hanoi

Hanoi saw prices rise at the slowest pace in the last 12 months in September -- 0.2 percent month-on-month.

For Ho Chi Minh City the figure was 0.88 percent.

According to the Hanoi Statistics Office, prices of seven out of 11 categories of goods and services rose, six of them by less than 1 percent.

Education rose by 0.98 percent and footwear and garment by 0.91 percent.

Transportation dropped by 0.56 percent while housing, electricity, water, fuel, and building materials fell by 0.01 percent thanks to the petrol price cut in late August.

The Independence Day holiday in early September pushed up the cultural, entertainment, and tourism services by 0.93 percent.

Figures from the HCMC Statistics Office showed that inflation in the first nine months was 14.49 percent.

Education saw an unusually high rise of 4.54 percent due to soaring tuitions at private schools. The figure had been only 1 percent in August.

Nine out of 11 commodities saw price hikes, with the other goods and services category recording the highest increase of 2.49 percent, followed by cultural, entertainment, and tourism services, which rose by 1.3 percent.

The other categories in the basket saw increases of less than 1 percent.

Food and restaurant services have risen the most year-on-year -- 27.68 percent.

Transportation and telecom services were the only two sectors to see prices drop this month, with both recording a marginal 0.07 percent fall.

Newswire VnEconomy quoted an official from the Ministry of Finance’s Price Management Department as saying inflation in September was expected to be 0.7-0.8 percent month-on-month.

Telecom opportunities sought in Algeria

The Vietnamese Government leader has said Vietnam encourages postal, information and communications technology businesses of Vietnam and Algeria to seek cooperative opportunities.

Prime Minister Nguyen Tan Dung made the affirmation while receiving the visiting Minister of Post, Information and Communication Technologies Moussa Benhamadi in Hanoi on Sept. 20.

PM Dung asked the Algerian side to create favourable conditions for Vietnamese telecom enterprises to invest in its market.

He also asked the Ministry of Information and Communication of Vietnam and the Ministry of Post, Information and Communication Technologies of Algeria to continue to boost cooperation in state management and exchange experience and information to contribute to socio-economic development in each country.

Minister Moussa Benhamadi briefed a working session with the Ministry of Information and Communication of Vietnam and stated that the two countries will continue developing traditional relations to further boost cooperation in post, information and communication technology, considering it as cooperative model for other fields between the two countries.

The Algerian Minister expressed his hope that cooperative agreements signed during this visit would facilitate the two sides to exchange state management and businesses of the two sides to boost investment cooperation.

Lao Attapu province tightens ties with Quang Ngai

A senior delegation from the Lao province of Attapu paid a working visit to Quang Ngai province in central Vietnam on September 20.

The delegation was headed by Vatsadi Khotnhonha, Vice Chief of Attapu province and Vice Secretary of the province’s Lao People’s Revolutionary Party chapter.

During the working session, Khotnhonha briefed Quang Ngai authorities on Attapu’s efforts to develop its human resources, reduce poverty, streamline administrative procedures, and raise its annual GDP growth per capita to 8-12 percent.

Vice Chairman of the Quang Ngai People’s Committee, Le Quang Thich, spoke briefly about the province’s socio-economic development, particularly the rapid growth of its service sector and industrial parks, including the Dung Quat Economic Zone.

The two provincial authorities agreed to boost bilateral cooperation in agriculture, education, medicine, and information, broadcasting and technological transfers. They also agreed to create favourable conditions for businesses from both countries to survey markets and sign economic, trade and investment contracts.

Taxes dampen used car imports in Vietnam

Used-car imports plummeted up to 70 per cent in August due to taxes being increased to $3,000-$17,000 per vehicle, depending on the size.

Only 199 secondhand cars were imported in the period, a fall of more than 70 per cent over the same month last year.

Of the total figure, around 170 units were low-end vehicles, selling at $3,600 - $4,000 each; 30 luxury cars, such as Audi, Lexus, Mercedes and BMW, sold for $20,000 - $73,000, most of which came into the country before the new tax rate became effective on August 15.

From that date, 1.0 litre passenger cars with less than 10 seats are being taxed $3,500 while those up to 1.5 litres $8,000; passenger cars with 10-15 seats and of 2.0 litre capacity, less $9,500; cars 2.0-3.0 litres $13,000; larger than 3.0 litres $17,000.

Used-car dealers were prepared for the drop off in sales, said a staff member of an auto showroom in Lang Ha street, Hanoi .

His company had not imported used-cars since August 15.

"We imported a large number before, so we'll sell what we have and wait for the government to sort things out," he said.

Companies have been permitted to import used-cars since May 2006. At first around 10,000 units were imported in 2006-2007, of which 50 per cent were luxury cars while the rest were vehicles which could not be produced locally, such as the Toyota Sienna, the Honda Odyssey, the Nissan Quest and the Murano.

VnSteel hunts Japanese partner

VnSteel, the biggest steel producer in Vietnam, is in talks with five major Japanese steel firms to seek a foreign partner by the year’s end.

The foreign firms are Nippon Steel Corporation, JFE Steel, Tokyo Steel, Kobe Steel and Marubeni Itochu Steel, said VnSteel president Le Phu Hung.

Hung added that his firm would also talk with other firms like Sumitomo and Kyoei. The Vietnamese firm’s managers will fly to Japan to approach the potential partners on October 10.

“We will meet and invite them to be VnSteel's strategic partners,” said Hung, saying the firm would choose one among those to be its partner.

The move as part of VnSteel’s ongoing equitisation progress. The former state-owned steel producer made its initial public offering (IPO) in early June, in which it sold a 5.75 stake, or 39.1 million shares, of VND6.8 trillion ($329 million) in chartered capital to the public. The sold volume fell short of the planned offering of 10 per cent or 68 million shares.

VnSteel planned to raise capital by VND1.2 trillion ($57.9 million) to VND8 trillion ($386.5 million) via a shares issuance to a foreign partner next year.

However, room for the partner might be enlarged, added by the outstanding shares from June’s IPO, according to Hung. The adjustment was also in the firm’s attempt to reduce the government’s ownership ratio from current some 95 per cent to 65 per cent in the short term and even 51 per cent in the longer term.

At the time of the IPO, VnSteel said Japan’s Nippon Steel Corp and Marubeni Itochu Steel, Russia’s Novolipetsk Steel, and Evraz Group SA were interested in being its partner.

At the moment, Hung emphasised the possibility to cooperate with a Japanese firm due to “cultural similarities,” also referring to reasons in terms of technique and management.

Hung expected the shares issuance will be completed in the fourth quarter, with the firm’s stock expected to list soon on the local exchange. He added that the firm was seeking an advisory agent and its plan would be soon submitted to the Ministry of Industry and Trade for approval.

Cement firms start to crumble

Cement firms are falling short of business targets amid a punishing economy.

Vicem But Son Cement Joint Stock Company’s deputy general director Ngo Duc Luu said the firm was set to churn out 2,450 million tonnes of clinker and 2,150 million tonnes of cement, and sell 650 tonnes of clinker and 2,150 million tonnes of cement in 2011.

The firm, however, decided on scaling down 10 per cent of production due to poor sales.

“Our cement sales figures were not dissimilar to those one year ago, however, it was hard to promote clinker sales. We have exported 800 tonnes of clinker this year,” Luu said.

Ministry of Construction statistics show that cement production and consumption plunged in August and in the first eight months of 2011 compared to June and July.

In August, 3.53 million tonnes of cement were produced, down 500,000 tonnes against June and 60,000 tonnes against July. Sales hit 3.41 million tonnes, down 40 tonnes against July and 520,000 tonnes against June, bringing sales figures in the first eight months to 31.65 million tonnes, tantamount to 58 per cent of the year’s projection.

Big market player Vicem’s sales figures in January-August plunged.

In 2011, the state cement conglomerate envisaged sales of 20,700 tonnes of cement with 19,550 tonnes for domestic consumption and 1,150 tonnes for export.

However, the sales volume in 2011’s first eight months came to 12,447 tonnes, around 60 per cent of the year’s target.

According to Vicem, most member firms saw their sales targets drop in the first eight months, including famous cement brands such as Ha Tien, Hoang Thach and Haiphong.

A representative of a cement firm based in northern Ha Nam province said cement firms hoped the property market would be less gloomy soon, paving the way for them to boost sales.

In September, Vicem’s member firms are set to sell out 1.63 million tonnes with 100,000 tonnes of clinker for export.

Vicem’s chairman Le Van Chung forecasted cement sales would still face tension amid rising supply.

Eleven new cement plants would come online within 2011, making market competition even stiffer, said Chung.

Rice farmers think big to improve income

Vietnam has enjoyed a place among the world’s top rice exporters for many years, but local rice growers’ income has remained at low levels.

The recent implementation of a pilot model of large-scale rice field in the Mekong River Delta is thought to provide an answer to this long-standing problem.

According to agricultural experts, small plots and scattered production hinder the application of machinery and technology to increase productivity and quality of Vietnam’s rice, keeping the price low.

Therefore, the large-scale field model – which gathered land and featured production cooperation between hundreds of farmer households and businesses – has drawn the participation of more than 6,400 households farming a total area of 8,200 ha when it was launched in the Mekong River Delta during the past winter-spring and summer-autumn crops.

The advantage of this model is that businesses help farmer households to sell products and provide them with rice seeds, fertiliser, irrigation service, advanced technologies and modern farming techniques, reducing production costs and increasing productivity and product quality. In return, businesses benefit from long-term supplies with ensured origin and quality.

For the summer-autumn crop, Tra Vinh’s first large-scale field in Phu Can commune, Tieu Can district attracted 302 households with an area of 300 ha. Thanks to a 30-per cent reduction in production costs, productivity increased by hundreds of kilograms and farmers’ income was increased by 20-30 per cent compared with the scattered farming practised earlier.

On a 1,000 ha field in Vinh Binh commune, Chau Thanh district, An Giang province, nearly 500 participating households saw an increase of over 150 per cent in profits in the winter-spring crop.

To help farmers in post-harvest rice preservation, the An Giang Plant Protection Joint Stock Company, a pioneer in building large-scale fields in the Mekong River Delta, has built two more rice drying factories and storage facilities in Thoai Son district, An Giang province and Tan Hong district, Dong Thap province, in addition to its existing 500 tonne-per-day rice drying factory and 35,000 tonne storehouse in Chau Thanh district, An Giang province.

Mekong Delta provinces have registered to implement the model of large-scale fields on a total area of 70,000 ha in 2012.

Increase in small cars, MPVs sales in August

The Vietnam Automobile Manufacturers’ Association (VAMA) reported a year-on-year rise of 10% in automobile sales with over 9,500 cars sold by VAMA’s members in August, mostly in small and multi-purpose vehicles.

There was a drop of 24% in commercial vehicles compared to the same period last year, with 3,164 cars sold in August. Meanwhile, a high demand in sport utility and multi-purpose vehicles (SUV/MPV) prompted a total auto sales growth of 10%.

Specifically, VAMA’s members had August sales of over 4,200 and 2,153 units, rising by 867 and 563 from July, for popular and SUV/MPV vehicles respectively, up 54% and 21% year-on-year.

Most car makers reported high revenues in August.

Toyota Motor Vietnam’s sales in August, for example, rose by 28% against the same period last year, which was its highest figure in the first eight months of the year. Meanwhile, GM Vietnam increased sales by 915 units and 26% respectively.

Similarly, Ford Vietnam also reported 32% of growth in sales with 772 units sold, accounting for 7.3% of the local auto market share, as a result of high sales of its brand new model Fiesta after three months of presence on the local market.

The Government’s Decree 45/2011 on increasing vehicle registration fees from 10-15% to 10-20%, coming into effect on September 1, and the rising demand led to high sales in August, local car dealers explained.

Meanwhile, a drop in sales of commercial cars, normally bought by enterprises, was caused by current difficulties and high interest rates at banks. However, this kind of vehicles still got the highest sales in the first eight months with 30,400 units.

VAMA’s members sold 70,650 units in the January-August period, up 2% year-on-year. The highest rise of nearly 29% was in popular vehicles with 25,300 units while the corresponding figures for SUV/MPV cars were 4% and 14,900.

* Vietnam Motor Show 2011, the largest show of its type to be held in the country, will take place in HCMC from November 16 to 20 at Saigon Exhibition and Convention Center (SECC) at 799 Nguyen Van Linh Parkway in District 7.

This year’s show, to be held by Vietnam Automobile Manufacturers’ Association (Vama) in coordination with Asia Trade Fair and Business Promotion, will be joined by many Vama members, including Toyota, Honda, Ford, Mercedes-Benz, Isuzu, GM, Mitsubishi, Sanyang, Truong Hai, Suzuki, and Vinaxuki.

The show draws the participation of more than 100 enterprises at home and abroad in various sectors such as accessories, spare parts, interior decoration, banking, and insurance, according to the organizers, who expect the show to attract more than 120,000 visitors.
 
TMV displays cars in six provinces

Toyota Motor Vietnam (TMV) has started its roadshow campaign ‘Introducing & Displaying Toyota cars’ at the Park Diamond Hotel in Binh Thuan Province’s Phan Thiet City.

The roadshow will be held every Saturday and Sunday until October 23 in Binh Thuan, Lam Dong, Quang Tri, Quang Binh, Thai Binh and Lang Son. This is the second time TMV has organized the campaign to bring cars assembled and imported by TMV, especially Vios, Innova GSR and Land Cruiser Prado to provinces without TMV’s dealers/ authorized service station.

TMV will arrange a draw with free use of a Vios/Innova SGR/Land Cruiser Prado for one day the main prize.
 
Bunge staff build new house for Long An poor

Staff of Bunge Asia, the Asian Pacific operating arm of Bunge Limited, last week participated in a community project to build a new house and present gifts to poor children in the Mekong Delta province of Long An.

Bunge employees from Singapore, Malaysia, India, Korea and the U.S. supported the community project as part of Global Village program organized by Habitat For Humanity International that aims to eliminate substandard housing throughout the world.

The team also came to the School of Disabled Children in Long An to give children gifts. They also bought some silk flowers made by the children.

Christopher White, chief executive officer of Bunge Asia, said it was a gift for the Bunge team to do something meaningful with their hands and hearts in Vietnam where the company operated a new soybean crushing plant in Phu My and managed the Phu My Port. He added that as Bunge business expanded into other areas and other products, the company would continue to support the local communities.

Bunge Vietnam, the wholly-owned subsidiary of Bunge Limited, started work on a US$100 million integrated soybean processing plant in the Phu My Port complex in Ba Ria-Vung Tau Province in December 2009 and began production earlier this year. Bunge has also announced the completion of two additional bulk warehouses and a fourth shore crane at the Phu My I Industrial Zone to serve its business operation in Vietnam.

Vietnam, Cambodia promote trade, investment, relationship  

Visiting Vietnamese National Assembly Chairman Nguyen Sinh Hung and his Cambodian counterpart Heng Samrin co-chaired a Vietnam-Cambodia Business Forum in Phnom Penh Monday with the participation of about 400 businesses from the two countries.

Addressing the event in the Cambodian capital, Mr. Hung said the forum was a vivid manifestation of solidarity, friendship and development between the two neighboring nations.

He expressed his pleasure with the strong development of the Cambodian economy and the improvement of people’s living conditions and laws, describing them as good signals for the two countries to promote two-way investment and cooperation to invest in the Association of Southeast Asian Nations (ASEAN), the region and the world.

He urged Vietnamese investors to coordinate with Cambodian firms to create a close link, build solidarity, friendship and cooperation.

Cambodia’s NA President Heng Samrin said that the forum, held ahead of the 32nd General Assembly of the ASEAN Inter-Parliamentary Assembly (AIPA-32), was a good opportunity to promote Vietnam’s investment in Cambodia.

He affirmed the presence of Vietnamese investors is an important factor, contributing to encouraging investment activities in Cambodia, and promised to create favourable conditions for them to invest in the neighbouring nation.

The Cambodian lawmaker suggested Vietnamese businesses tune into Cambodia’s key fields such as agriculture, agricultural product processing, mining, services, banking, securities, science and technology and tourism.

Also on Monday, the Vietnamese top legislator met with President of the Cambodian Senate Chea Sim, affirming Vietnam’s priority of strengthening and developing traditional friendship and comprehensive cooperation with Cambodia.
 
President of the Cambodian Senate Chea Sim (R) meets with Vietnam’s National Assembly Chairman Nguyen Sinh Hung in Phnom Penh September 19, 2011 (Photo: Vietnam News Agency)

Vietnam always considers the shared relations as the common invaluable treasure needed to be strengthened for the development and prosperity of the two countries, Mr. Hung added.

He stressed the similarities and difficulties of the two countries in periods of history, saying that the two sides need to tighten solidarity, promote cooperation projects, contributing to maintaining peace, stability in the region and the world as a whole.

He briefed Mr. Chea Sim on results of talks and meetings with King Norodom Sihamoni, National Assembly President Heng Samrin and Prime Minister Hun Sen, saying that the two sides agreed to continue fostering the Vietnam-Cambodia special friendship and solidarity for the interests of the two peoples.

Mr. Chea Sim welcomed the current visit to Cambodia by him, saying that it would be a milestone in promoting and deepening comprehensive cooperation, while contributing to fostering friendship between the two countries and peoples.

Based on a firm, traditional foundation, the two sides should actively exchange delegations, hold talks and accelerate cooperative agreements in all fields, including politics, diplomacy, security, defence, socio-economics and especially the close cooperation between the two legislative bodies.

Painting contest lends colour to children's dreams

Nearly 120 children aged between 4 and 13 from HCM City's Viet Nam-Australia International School participated in an painting contest titled My World – My Future on Sunday.

The little artists, including Phan Hoang Thu Anh and Tan Way Kiet used vivid colours to paint their wishes, dreams and feelings about the world around them, life, family and teachers.

Kiet and Anh were among 21 children from the school to join the contest's final round, which will be organised in the northern province of Phu Tho's Gymnasium in November. As many as 1,500 finalists from schools across the country will participate in the contest.

My World – My Future is an event launched by the international fine arts centre for children, Global Art Viet Nam, in co-operation with the Ministry of Education and Training.

It aims to give children the opportunity to dream, express their dreams and develop their talent in drawing.

The contest winner will be given a cash prize of VND20 million (US$1,000) and an overseas trip, organisers said.

Exporters to sharpen Mideast, Africa focus
 
The recent economic crisis has proved that domestic businesses should not depend solely on traditional markets like the EU, US and Japan, and should expand investment and business activities into the Middle Eastern and African markets so as to disperse the risk, a senior official said yesterday.

Bui Thi Thanh An, head of the Viet Nam Trade Promotion Agency (VIETRADE) ‘s HCM City office said at a seminar that there was huge demand for Vietnamese goods, especially for consumer goods, machinery, food, medicine, textile, rice, seafood and agricultural products, in the Middle Eastern and African markets.

Ly Quoc Hung, head of the Ministry of Industry and Trade's Africa-Western Asia-Southern Asia Department, said product diversification and intensification of promotional programmes were key for domestic businesses to further take advantage of untapped potentials in new markets.

Vietnamese products are presently shipped to 55 African countries, with Egypt, South Africa, Angola, Nigieria, Ghana, and Algeria being the major markets, he said.

He said domestic businesses should ensure that the brand name and production information on the packaging are printed in English, Arab or other languages specific to the market. Besides, the businesses need to thoroughly understand local customs and tastes.

Vietnamese firms should visit these markets and commercial centres to meet local businesspeople and seek ways to co-operate. Participation at conferences and trade fairs was also necessary, Hung said.

"Vietnamese firms should not try to establish co-operation through the Internet because the risk of being cheated in business, especially in Western and Central Africa, is high," he said.

Some markets like Mali, Mauritania, Niger and Cape Verde, which were developing countries, offer many investment opportunities in infrastructure and supply of staple goods, he said.

He also cautioned that Middle Eastern and African countries had trade barriers, including complicated and slow procedures that Vietnamese businesses should be aware of.

In the first six months of this year, Vietnamese exports to African countries reached US$1.692 billion. Major export products were textile, leather shoes, seafood, rice, coffee, pepper, rubber and wood products, while import items, worth $548 million included plastic material, oil, chemicals and steel.

Two-way trade turnover between Viet Nam and African countries is expected to reach $3.1 billion this year, an increase of 70 per cent over last year.

The Middle Eastern region, comprising 16 countries, is a highly promising market, but Vietnamese exporters have not been able to tap its potential.

The region accounts for three-fourths of oil reserves in the world. It has huge potential in finance and huge capital resources. Besides, Israel presents great potential in biotechnology and hi-tech industries.

The tourism potential in these markets is also high with opportunities present for businesses on both sides, speakers said at the seminar.

Currently, Kuwait has offered loans worth $140 million to Vietnamese investors for infrastructure development in its mountainous region.

Saudi Arabia has now a huge demand for migrant workers and can take in 400,000-700,000 Vietnamese labourers. Saudi Arabia plans to co-operate with Viet Nam in implementing vocational training projects.

In the first nine months of the year, two-way trade turnover between Viet Nam and Middle Eastern countries is estimated at US$3.5 billion, of which Vietnamese exports account for $1.62 billion.

An said VIETRADE will continue to take measures to help Vietnamese businesses step up their exports, such as organising conferences and seminars for providing market information to businesses and sending trade delegations to study potential markets.

From Sept 25 to October 2, VIETRADE, in collaboration with the Ministry of Industry and Trade and the national agency covering small and medium-sized enterprises in Benin, a country in Western Africa, will organise a trade promotion programme. The aim is to study the market and organise b2b (business-to-business) meetings.

Benin is a country with plentiful sources of raw material including cashew, timber, seafood and minerals that are now scarce in Viet Nam.

Firms drag feet on relocations
 
Many enterprises slated to move out of the centre of HCM City have not relocated, citing financial difficulties, a labourer shortage and cumbersome administrative procedures.

Nguyen Thi Kim Loan, sales director of Thai Ngan Trading and Production Co Ltd, said that the company had failed to submit an environmental impact study before building its wood-manufacturing factory in District 12, which delayed its move out of the city centre.

The company also must update the environmental impact report every six months, he said, complaining that it was too difficult to do because of regulations issued by the Ministry of Natural Resources and Environment.

Small- and medium-sized enterprises had found it difficult to spend more than VND60 million (US$2,850) to produce the report, which involves giving all details about construction, operation and impact on the environment, including population, traffic and pollution, said Dang Quoc Hung, deputy chairman of HCM City's Handicraft and Wood Industry Association.

However, the Ministry of Natural Resources and Environment has allowed small- and medium- sized wood manufacturers to submit an environmental protection commitment instead of a report.

But Hung said that regulations on how much waste and air pollution that small- and medium-sized wood manufacturers can discharge did not exist.

Le Quang Doan, general director of Minh Dieu Commercial Production Co Ltd, said that the company had planned to move its factory to the Sonadezi Industrial Park in neighbouring Dong Nai Province six years ago.

However, the company's financial problems, including expanding its factory, prevented it from moving to a new place, Doan said, adding that it still planned to do so.

The Thanh Cong Textile Garment Company also failed to move its factory in Tan Phu District to one of the two land plots it owns in the neighbouring provinces of Tay Ninh and Long An because of a labour shortage in the area.

Investor group urges VAT on gold trading

The Viet Nam Association of Financial Investors has urged the Government to impose a 10 per cent value added tax (VAT) on gold trading in a move to stop the precious metal being used for economic payments.

The association said that many countries worldwide taxed the trading of gold bullion and jewellery in order to manage their markets, with Russia even imposing a special consumption tax of 20 per cent on the product.

Such a policy would help countries keep the gold market from manipulation and speculation, the association said, adding that a large amount of money was currently being pumped into gold trading as ‘dead' capital since not being directed to production.

The Ministry of Finance called on relevant ministries to share their views regarding the possible VAT imposition on credit institutions such as gold traders and foreign exchanges.

The State Bank of Viet Nam this week licensed 10 banks and gold trading companies to import a total of four tonnes of gold, expected to arrive in the country today.

The Sai Gon Jewelry Co, the country's largest gold trader, and the Phu Nhuan Jewellery Co were allowed to import 700 and 500 kilos of the mineral, respectively.

This is the third time the central bank has authorised gold trading companies to import gold since last month to help bring down soaring domestic prices.

On the domestic market, the SJC quoted gold at VND46.8/46.95 million per tael (1.2 ounces) yesterday while Bao Tin Minh Chau listed at VND46.8/47.02 million, nearly VND2 million higher than the world price.

Polish firms explore local opportunities

A multi-sector delegation of Polish companies met executives of more than 60 Vietnamese companies in HCM City yesterday to seek trade and investment opportunities.

The visiting companies mainly specialise in manufacturing machinery for the food industry, trailer and truck chassis, pumps, steel, poultry products and pharmaceuticals.

Nguyen The Hung, deputy director of the Viet Nam Chamber of Commerce and Industry's HCM City branch, said with a population of nearly 40 million and per capita income of more than US$18,000 per year, Poland was a promising market for Vietnamese products.

Bilateral trade between Viet Nam and Poland has increased considerably in recent years, reaching $400 million last year, of which Vietnamese exports made up a much larger part.

Viet Nam mainly exports garments and textiles, agricultural products and seafood to Poland. It imports machines, equipment, milk powder and medicine from the country.

Polish enterprises have invested in eight projects in Viet Nam worth a total registered capital of roughly $100 million.

Poland had been an important partner of Viet Nam in Eastern Europe for long, Hung said.

Firms urge tax, customs reforms
 
Tax and customs procedures should be simplified to ensure a transparent and favourable environment for business, deputy director of the Viet Nam Chamber of Commerce and Industry (VCCI) Pham Gia Tuc has said.

VCCI joined the Ministry of Finance to organise a dialogue with businesses yesterday in Ha Noi to tackle difficulties enterprises face in tax and customs procedures and discuss amendments to the law on tax management.

According to a VCCI report, 90 per cent of enterprises surveyed highly appreciated the effort of tax and customs procedure reform made during the last few years, which they claimed had helped their business.

"However, many problems hindering enterprises' operations were still revealed, which requires greater effort to tackle," Tuc said.

According to Tuc, the inconsistency in legal documents as well as the lack of up-to-date information has caused confusion in implementing tax and customs-related operations.

Tax exemptions and extensions applied to enterprises had been controversial and were in need of detailed regulations, he added.

He also said restricting to tax and customs officials was also a barrier.

According to Hoang Manh Thang from the Thanh Hoa Construction Company, the basis to assess a product's price for taxation must be clarified to avoid losses to businesses, some of which have been taxed twice for the one item.

Deputy general director of the Garment 10 Corporation Hoang Minh Khang agreed, saying wiping out these obstacles would ensure competition among enterprises and improve the work with customs and tax agencies.

According to Deputy Minister of Finance Hoang Anh Tuan, the application of information technology in customs and tax operations would help boost efficiency.

The pilot application of e-customs was ongoing and the model would be replicated throughout the country to help simplify tax and customs procedures.

A draft amendment to the law on tax management would aim to modernise and simplify tax procedures while enhancing tax management capacities, emphasised Tuan.

In addition, decrees on value-added tax, corporate income tax and special consumption tax would also be amended to ensure equality.

According to the Ministry of Finance's report, nearly 40,000 enterprises have registered for online the tax declaration service.

The ministry also aims to provide electronic tax services to about 80 per cent of businesses throughout the country by 2015.

E-customs has been piloted in 20 out of 23 provincial customs departments and the number of electronic customs procedures has reached 68 per cent.

Largest underground mall to open

Vincom Joint Stock Corporation has announced the largest underground shopping centre in South East Asia, Vincom Mega Mall, will open in August 2013.

Vincom Mega Mall, part of the Royal City project in Thanh Xuan District, will occupy an area of 230,000 square metres and will consist of two basements and two above-ground floors.

The mall will have 62 emergency exit doors and ladders.

$14 million loan to build new factory

The Quang Ngai Sugar Joint Stock Company on Monday signed a loan agreement worth VND300 billion (US$14.4 million), repayable over 84 months, with the Bank for Foreign Trade of Viet Nam to build the Vinasoy soya milk factory in northern Bac Ninh Province.

The project, which has a total investment of VND753.3 billion ($36 million), will occupy a 6.2-ha areas in Bac Ninh Province's Tien Son industrial zone.

The factory is scheduled to be operational in June 2012 and will have an output capacity of 180 million litres per year.

Kien Giang calls for investment

The Cuu Long (Mekong) Delta province of Kien Giang is looking for foreign and local investment to develop five provincial industrial zones – Thanh Loc, Thuan Yen, Xeo Ro, Tac Cau and Kien Luong II.

The industrial zones, which covers a total area of 755.5ha, have been given the Government go-ahead to be set up by 2015.

PV