First Vincom shopping mall opened in Da Nang

The Vincom Joint Stock Company inaugurated its first shopping mall in the central coastal city of Da Nang on June 30.

The 40,000-square-metre centre, located in Ngo Quyen avenue, includes a basement and four floors with fashion stores, supermarkets, home appliance, furniture, book and stationary and a food court.

The highlights of the complex include a 30-millimetre ice rink and a 3,000-square-metre education-entertainment centre for kids.

The Vincom and Vincom Mega Mall chains are developed and operated by Vingroup’s retail unit, Vincom Retail.

It is expected that Vincom Retail will possess as many as 30 shopping malls in 19 provinces and cities by 2015.

HOSE launches total return index

The Ho Chi Minh Stock Exchange (HOSE) launched the total return index (TRI) on June 30 to evaluate investment efficiency.

Experts said the TRI is in accordance with international standards and practices, especially given that the investment trend according to the Vietnam stock market index is shaping more vividly.

Deputy Director of the bourse’s research and development office Ho Ngoc Doan Trang said the HOSE aims to diversify indicators serving investors, particularly investment funds.

She said the TRI provides investors with an effective evaluation tool, as well as more reference for exchange-traded funds (ETF) as the TRI reflects returns more accurately than a price index.

Portfolio manager at Dragon Capital Group Le Yen Quynh said the establishment of the total return index is necessary not only for investment funds but also for investors at large, she said, adding that two biggest ETFs in Vietnam, namely Market Vector and DB x-trackers FTSE, are utilising this index.

Vietnam, Australia discuss sustainable mining efforts

Vietnamese and Australian experts and managers involved in mining held a workshop in Hanoi on June 29 to discuss cooperation in sustainable mineral development.

Deputy Minister of Mineral Resources and the Environment Tran Hong Ha said Australia had experience in managing and developing resources safely and ensuring environmental protection and community benefits.

Australian experts shared their practical experience with sustainable development models in mining, their country's policies and regulations for environmental management and issues related to communities within mining areas.

Professor David Mulligan, an expert with 25 years of experience in developing and researching resources, said the Australian Government's cooperation with Vietnam aimed to build a sustainable mining strategy.

Cooperation would focus on raising awareness of best practices in managing the impacts of mineral exploitation on land and under water, he added.

Mulligan said that in Australia, it was necessary to provide mining information for media agencies and pay attention to ensuring benefits for the community, managing water and treating post-exploitation waste.-

6.5 percent GDP growth needed to avoid deflation: expert

Vietnam needs to attain a gross domestic product (GDP) growth rate of at least 6.5 percent to steer clear of deflation risks, an expert said on June 30 given the slowing inflation rate over the past year.

At a workshop in Hanoi, Deputy Director of the Academy of Finance’s Institute of Economics and Finance Nguyen Duc Do said with 6.5 percent GDP growth, inflation could be around 1.68 percent – an appropriate figure for the contemporary economic context.

If the economy expands at 6-6.25 percent, the possibility of deflation is real, he noted.

As GDP increased by 6.28 percent in the first half of 2015, deflation is more likely than the rebounding high inflation, which is why the Government set the GDP growth target of 6.5-7 percent for 2016-2020, he added.

A report at the workshop further explained that the consumer price index (CPI) in June climbed 0.55 percent against December last year and 1 percent from the same period of 2014. Inflation pace in the last year slowed considerably and Vietnam’s economy is now close to 0 percent inflation rather than the targeted ceiling rate of 5 percent.

In the first two quarters of this year, 2 percent VND/USD exchange rate adjustments led to a CPI hike of 0.6 percent while the 8.42 percent augmentation in electricity prices contributed a 0.22 percent gain to the index. As such, the slow six-month inflation was mainly driven by costs, not by demand.

Do said since 2008, Vietnam’s economic growth has been continually below its potential of 6.5 percent, meaning the increase of aggregate demand was lower than that of aggregate supply, dragging inflation down.

He stressed interest rates need to be cut down, especially lending rates since the current positive real lending rate is about 7.5 percent, much higher than the actual GDP gain, hampering business efforts to broaden their operations.

Spending money on buying bonds will make it more favourable to reduce interest rates and boost credit, he noted.

Quang Binh’s industrial production rises 8.5 percent

The index of industrial production (IIP) of the central province of Quang Binh in the first six months of this year increased annually by over 8.5 percent and its production value hit over 4.4 trillion VND (around 202.5 million USD).

The rise of the IIP indicates the stability of the locality’s industrial production and its promising growth.

Strong growth from a number of sectors contributed to the high rate. Among these, the garment-textile industry, non-metal minerals and cement saw the highest growths of 40 percent, 14 percent, and 11 percent, respectively.

To generate the positive results, the local authorities have promoted administrative procedure reforms to facilitate production of local enterprises.

The province plans to increase support for firms, especially those operating in industry in the locality.

It will also enhance investment promotion and assist investors to complete their industrial projects, focusing on garment-textiles, construction material and wood processing.

Exports hike up 9.3 pct annually in first half

Vietnam exported 77.7 billion USD worth of commodities during the first half of 2015, a year-on-year increase of 9.3 percent, the General Statistics Office estimated.

The growth rate was lower than the 15.4 percent rise recorded during the same period last year.

Domestic enterprises shipped abroad 22.8 billion USD worth of goods during the period through June, a drop of 2.9 percent.

Meanwhile, foreign invested companies saw a total export turnover, including crude oil, of 54.9 billion USD, rising by 15.3 percent from a year earlier and making up 70.6 percent of the total exports – the highest ratio ever.

Among key export commodities, telephones and components brought home 14.7 billion USD (up 27.1 percent), computers and components – 7.4 billion USD (up 60.4 percent), footwear – 5.9 billion USD (21.9 percent), and cashew nuts – 1.1 billion USD (28.4 percent).

Overseas shipments in June alone were estimated at some 14.3 billion USD, up 4.4 percent from the previous month.

Over the first two quarters, Vietnam posted an import turnover of 81.5 billion USD, a year-on-year surge of 17.7 percent, compared to 10.5 percent a year before.

As a result, the six-month period saw a trade deficit of 3.7 billion USD, equivalent to 4.8 percent of the total export value.

Vietnam’s economic development potential presented in Germany

Vietnam Fatherland Front President Nguyen Thien Nhan overviewed his country’s economic development potential to an audience of German politicians, businesspersons and bankers on June 29 as part of his working visit to the European nation.

His speech, delivered at the Messer AG convention centre in Frankfurt, highlighted Vietnam as a force for growth in the ASEAN market which is likely to have a 105 million-strong population and a gross domestic product of some 540 billion USD by 2030.

He also outlined five solutions for the country’s sustainable growth: controlling public debt, fighting corruption, reducing non-performing bank loans, preventing climate change impacts and enhancing cyber security.

The German-language speech received positive responses from listeners at the event, where Nhan also answered questions regarding tourism and energy.

The same day, the Vietnamese delegation had a working session with Minister for Higher Education, Research and the Arts of the Hessen state Boris Rhein, who spoke highly of the sound multifaceted cooperation between the two countries as well as between Hessen and Vietnamese ministries, sectors and localities.

Rhein highlighted the Vietnam-Germany University project, implemented since 2008 in coordination with his ministry, and considered it the most outstanding result of the countries’ educational partnership. He also expressed his belief in bilateral collaboration development.

In Bonn city, the Vietnamese side met Head of the International Relations Department of the German Cooperative and Raiffeisen Confederation Andreas Kappes, who gave an overview of the development and current organisation of the confederation and shared reasons for the success of the cooperative system in Germany.

Techcombank named best retail, corporate bank in Vietnam

The Global Banking and Finance Review, a British magazine, named the Vietnam Technological and Commercial Joint-stock Bank (Techcombank) the best Vietnamese retail and the best Vietnamese corporate bank.

Techcombank CEO Murat Yuldashev said the titles acknowledged his bank’s efforts in advancing banking technologies, expanding branches and fulfilling demand for high-quality financial services for individual and enterprise customers.

It is the tenth time the company has been honoured in the two categories with an international award.

As of March 31, 2015, Techcombank had posted 179.1 trillion VND (8.25 billion USD) in assets and was employing more than 7,200 people. It boasts a network of 312 branch offices and 12,000 ATMs which cater to almost 3.7 million individuals and 49,000 businesses.

Vietnam forecast to sharply increase M&A activities

Vietnam is among the emerging market having high transactional growth in merger and acquisition (M&A) activities, according to a latest report released by the Baker McKenzie law firm.

Stand-out markets for predicted high transactional growth in next five years include developed economies such as the Netherlands, the UK, Sweden, China, Hong Kong (China) and India, and emerging markets of Mexico, Egypt, and Vietnam, Singapore’s Business Times quoted the report as saying.

Globally, Baker McKenzie analysts predicted M&A deals to rise to 2.7 trillion USD in 2015 before accelerating to 3 trillion USD in 2016 and 3.4 trillion USD in 2017.

M&A activity relating to emerging markets will grow dramatically, rising by 56 percent to 678 billion USD by 2018, up from 435 billion USD in 2014.

The most active sectors over the next five years are forecast to be healthcare, telecommunications and structural financials.

Consumer goods and services, technology and pharmaceuticals are also expected to expand due primarily to cyclical trends.

1.5 trillion VND raised from Government bonds

The Hanoi Stock Exchange (HNX) has recently held an auction to sell 1.5 trillion VND (69.4 million USD) worth of Government bonds in five-year term.

The money mobilised to the State Treasury has an annual interest rate of 6.4 percent, 0.03 percent higher than that of the previous tender.

The bonds on offer were worth 2.5 trillion VND (116.3 million USD) in total, including those of five-year and 15-year terms.

Earlier on June 26, the HNX in conjunction with the State Treasury to launch an online government bond transaction system (E-BTS).

The system is expected to make the government bond market more lucrative, attracting more domestic and international capital to Vietnam’s bond market, eventually contributing to liquidation.

Farmers should focus on market-oriented agricultural production to boost the sector’s growth, said Minister of Agricultural and Rural Development Cao Duc Phat at the monthly cabinet meeting on June 29 in Hanoi.

He also urged localities to develop resilient crops to deal with natural disasters in the second half of this year.

He attributed difficulties facing agricultural production in the first half of this year to drought and market demand.

Rice output, which accounts for 40% of total agricultural production, has seen a 160,000-tonne reduction from the first half of last year due to drought.

Exports of rice, rubber and aquatic products have also seen a decline in the reviewed period.

The Minister asked localities to promote livestock, especially raising cattle, to fully tap economic demand, which has seen a growth rate of 6%.

Focus should also be on the prawn and tra fish sector in tandem with economic forest planting, Phat said.

Seafood sector aims to produce 6.4 mln tonnes this year

Vietnam’s seafood farming and fishing industry is expecting to produce 6.4 million tonnes in 2015, according to the Directorate of Fisheries under the Ministry of Agriculture and Rural Development.

A conference on seafood production in the first six month was held on June 29 in Hanoi by the directorate, revealing that in the first half of the year, seafood production reached 3 million tonnes, up 3.6% against the same period last year.

Of the 3 million tonnes, the farming sector contributed 1.8 million and the remaining was generated through fishing. Brackish-water shrimps posted a 21% growth with 200,000 tonnes.

In order to reach the expectations, the sector will need to face competition from other countries, technical barriers, and disease risks, according to the Directorate.

Nguyen Van Trung, Head of the Department of Fisheries Capture and Resources Protection under the Directorate, said the implementation of Decree No 67/2014/ND-CP on seafood development needs to be sped up to boost the output of seafood fishing.

Government Decree No. 67 provides a full, systematic and synchronous set of basic policies to encourage fishermen to build high-capacity and iron-covered ships capable of fishing offshore.

Nguyen Huy Dien, Deputy General Director of the Directorate, said that the agency would organise regional meetings to assign tasks and send working teams to localities to help farmers ensure high seafood quality.

Binh Duong gives thumbs up for US$274m textile plant

The Southern Binh Duong provincial People’s Committee on June 29 approved the issuance of an investment certificate to Polytex Far Easterm Company, based out of Taiwan.

With an investment of over US$274 million in the first phase, the company will construct a 99ha plant to make supporting products including polyester and cotton yarn at the Bau Bang Industrial Zone.

 “Bau Bang is an ideal place for the factory,” said Cheng Chen Yu, the company’s CEO in making the announcement.

We plan to invest US$274 million in the first phase and raise an additional US$700 million in the second and final phase to complete it.

There was no announcement of when the work would commence or a timetable for its completion.

Once fully operational, the plant will generate more than 3,000 jobs and have a capacity to produce 21,600 tonnes of polyester, 21,600 tonnes of DTY fibres, 127 million sq.m of knitted fabric and 96,000 sq.m of cotton per annum.

Polytex Far Eastern Vietnam is a member of the Far Eastern Group, which has investments in Vietnam spanning the petrochemicals, cement, and retail to finance, and communications industries.

Resolution to improve business climate shows initial success

The implementation of Government Resolution 19/NQ-CP on improving business environment and national competitiveness between 2015 and 2016 has shown encouraging outcomes in the first half of this year, said Minister of Planning and Investment Bui Quang Vinh at the regular cabinet meeting held in Hanoi on June 29.

Specifically, the registration time for business licences has been cut to three days, just half of the set goal of six days while time spent on business initiation procedures was reduced from 34 days to 17 days. As a result, Vietnam is expected to leap 72 places to 37 in the national competitiveness ranking in terms of start-up business criteria – much higher than the average level of the ASEAN-6 (including Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam).

The investor protection indicator increased to 6.2 points from 3.33 thanks to reforms of the 2014 Law on Enterprises. With this outcome, Vietnam will move up 105 places to 52, meeting the average level of ASEAN-6 as set by the resolution.

In 2014 and early 2015, the time required for paying taxes was reduced by 380 hours (from 537 hours per year to 157 hours per year) and is set to be cut by an additional 35.5 hours to meet the resolution’s target.

The procedure for social insurance payments has been slashed by 100 hours (from 335 hours per year to 235 hours per year), which is still a long way from the target of 49.5 hours per year.

The total time for tax and social insurance payments is expected to drop by 480 hours, helping the country rise 27 places to 122, which is far below the average level of ASEAN-6 (ranked 67 th ).

The Ministry of Industry and Trade and the Electricity of Vietnam have issued documents to reduce the time needed to access electricity, which has been cut from 115 days to 85 days and will undergo additional simplification to reach the resolution’s set target of 70 days.

Pertaining to cross-border trade transaction, the Ministry of Finance and the General Department of Customs have reviewed and adjusted relevant policies to address customs procedures for businesses.

Yet Minister Vinh described this as the responsibility of not only the Ministry of Finance and the General Department of Customs but also of related ministries and agencies.

The resolution, dated March 12, 2015, requested ministries, agencies and localities to focus on consistent and effective implementation of key tasks and solutions to improve the business climate and national competitive capacity.

The involved parties ought to implement the resolution more effectively and address shortcomings in import-export quarantine and customs declaration in particular.

HCM City facilitates Australian investment

Ho Chi Minh City continually works to create favourable conditions for Australian enterprises to invest in the city, Vice Chairman of the municipal People’s Committee Le Thanh Liem was quoted as saying by the Sai Gon Giai Phong newspaper.

He made the statement during a reception on June 28 for a visiting delegation from the Australian Political Exchange Council led by Senator Matthew Merry.

He expressed his hope that the Australian Senator and delegation members would further support cooperation between the city and Australia and its localities.

The city leader also hoped the delegation’s visit would serve as a catalyst to foster Australian investment in the city while boosting cultural and people-to-people exchanges.

Israel, Vietnam aim for US$2 billion bilateral trade

Vietnam and Israel should redouble efforts to lift this year’s bilateral trade turnover to US$2 billion from US$1 billion of a year earlier, said chairman of the Party Central Committee's Commission for Economic Affairs Vuong Dinh Hue.

At a meeting with Israeli Minister of Economy Arye Deri as part of the Vietnam delegation’s visit to Israel from June 28-July 2, Hue affirmed Vietnam’s wish to augment multifaceted cooperation with Israel, primarily in economics.

In the first quarter of this year, two-way trade turnover between the two countries grew more than 80% over last year’s corresponding period, Hue said noting that both nations boast great potential for increasing cooperation in science, technology, agriculture, security, defence, trade and investment.

For his part, Minister Arye Deri pledged his best efforts to step up all-round cooperation in the time to come.

Multi-million-USD textile project gets approval in Binh Duong

A 274 million USD textile project run by a Taiwanese company got an investment certificate from southern Binh Duong province authorities on June 29.

Polytex Far Eastern Co. Ltd, a member of Taiwan’s Far Eastern Group, will spend 274 million USD on phase one of the project, which will cover 99 hectares at the Bau Bang industrial and urban park.

The factory will have an annual capacity of 21,600 tonnes of polyester fibre, 21,600 tonnes of polyester drawn textured yarn, 127 million square metres of knitting fabric and 96,000 square metres of cotton cloth.

When operational, it is expected to create more than 3,000 jobs for local people.

Polytex Far Eastern Chairman Cheng Chen Yu said the Bau Bang industrial park owns favourable investment climate, adding that the Taiwanese group will pour 700 million – 1 billion USD into phase two of the project.

The Far Eastern Group is a leading corporation in Taiwan with total assets estimated at nearly 80 billion USD.

Chairman of the Binh Duong People’s Committee Tran Van Nam pledged favourable conditions for the project implementation and believed that the project will help ensure material supply for the footwear and apparel sectors once Vietnam joins the Trans-Pacific Partnership agreement.

Binh Duong province, located in the southern key economic region, attracted over 1 billion USD in foreign investments during the first half of this year, exceeding its yearly target.

Conference seeks more investment in agriculture

Private enterprises have succeeded with their agricultural investments, but their progress still lags behind their true potential and the demand for development in the sector, a conference was told in Hanoi on June 28.

Minister of Agriculture and Rural Development Cao Duc Phat noted that investments by private businesses in the area had increased by 1.9 times from 2009-13.

The number of companies investing in agriculture rose from around 2,400 in 2007 to 3,635 in 2013, an average growth rate of 13.8 percent per year. Private firms accounted for nearly 90 percent of the figure, creating jobs for some 265,000 workers.

Companies such as Vinamilk, TH Truemilk, Minh Phu Seafood and property developer Hoang Anh Gia Lai have become locomotives driving high-tech application and market expansion in the agricultural sector in many localities.

Real estate giant Vingroup, major telecommunications service provider Viettel and multi-sector business group FLC have also expressed intentions to invest in the field.

The Government has issued specific resolutions last year and this year to speed up the improvement of the agricultural business environment.

The Ministry of Agriculture and Rural Development (MARD) has also established a working group with the participation of its management agencies and 30 key enterprises to attract agricultural investments.

Despite the aforementioned increases, Minister Phat said investments in agriculture remained limited and unstable. In 2014, businesses operating in this sector accounted for only about 1 percent of the total firms in the country, and more than half of them were of small scale with capital of less than 5 billion VND (238,100 USD).

Representatives of the World Bank and many companies said that better conditions related to land, infrastructure, taxes and fees, as well as investment promotions and technological development should be put in place in order to attract more interest in agriculture.

Deputy Prime Minister Hoang Trung Hai said challenges have become greater for agricultural development as the country will enter a variety of free trade agreements.

He said land issues, especially site clearance, is the biggest obstacle facing companies, and ministries and sectors will have to scrutinise them for appropriate settlements in the coming months.

He suggested enterprises should prioritise forming links with farmers instead of asking for land grants, since the growing Vietnamese population has left the per-capita area of land for production small.

Hai said the Government would focus its investments on agricultural infrastructure, including irrigational works and rural traffic, urging the MARD-led working group to concentrate on developing advantageous lines of products.

He urged enterprises to either team up or foster public-private partnerships.

The Deputy PM also urged agro-businesses to produce more quality products and pay more attention to the interests of the community in order to gain consumer confidence.

"The Government will continue to trim administrative procedures and show enterprises that we are serious about helping them to industrialise and mordernise agriculture and rural areas," he noted.

New City Vietnam Co. Ltd. last Saturday broke ground for a US$1 billion luxury resort project in the central coast province of Phu Yen though it was licensed in 2008.

The wholly foreign-invested project will develop a resort and a hotel on 357 hectares in Tuy An District’s An Chan and An My communes and Tuy Hoa City’s An Phu. Other facilities will include an international yacht port plus high-end beach services, and an international tourism services area called Sunrise Phu Yen on Hon Chua Island.

Phu Yen leaders said the project could become a new tourism landmark in the province, generate extra tax revenue for the province and more jobs for local people, and fuel economic growth in the province.

When the provincial government licensed the project in 2008, developer Brunei’s New City Properties Development Co. Ltd. planned to spend US$4.3 billion developing the resort on 565 hectares, which encompasses major places of interest such as Hon Chua, Hon Dua and Hon Than islands and Bai Xep beach.

But in September last year the investor proposed scaling down the project and its investment cost, and seeking new funding sources and the province approved adjustments to its investment certificate, which include reducing the project site from 565 hectares to 357 hectares and the capital from US$4.3 billion to US$1 billion.

Bac Giang’s lychee sells well

High quality lychee from northern Bac Giang province has sold well in domestic and international markets, according to a local senior official.

So far this year, nearly 200,000 tonnes of lychees, or 85 percent of the province’s lychee output, has been sold at high prices mostly in China, the US, France, Australia, the UK, Malaysia and Laos, said Tran Van Loc, Director of the provincial Department of Industry and Trade.

In the domestic markets of Hanoi, Hue, Da Nang, Ho Chi Minh City and a number of southern provinces, the price ranges between 10-15,000 VND (0.4-0.7 USD) per kilogramme.

The successful consumption was buoyed by active support activities conducted by the province, including promotion events across the country and abroad.

Lychee farmers have also received technical assistance in ensuring their products meet international requirements.

Vinh Long sees increase in social investment capital

The Mekong Delta province of Vinh Long drew a total social investment capital of 5.335 trillion VND (244 million USD) in the first six months of 2015, up 8.8 percent from the same period last year.

Of the figure, non-State capital increased 10 percent and foreign direct investment capital increased 44 percent.

The province has nine newly-registered projects with 649 billion VND (30 million USD) in total capital focusing on agro-products and food processing, commerce and business.

Another 113 enterprises were established, bringing the total number of businesses operating in the province to 3,915 with a combined capital of 18.5 trillion VND (850 million USD).

The encouraging results are attributed to provincial efforts to create a coordination mechanism among sectors and localities to cut down red tape.

Dialogues with enterprises were organised to address any emerging issues in a timely fashion.

The province also encouraged enterprises to invest in key sectors such seafood processing, rural infrastructure and commerce.

The one-stop-shop mechanism between the Department of Planning and Investment and the management board of industrial zones or between the Public Security and the Tax Department were established.

The province also published 77 new administrative procedures, revised eight procedures and removed 73 procedures to increase transparency and draw investors.

Business knowledge of FTAs limited

It is crucial to enhance business understanding of free trade agreements (FTAs) and bilateral investment trades (BITs), experts said.

During a June 29 conference co-hosted by the Central Institute for Economic Management (CIEM) and the ActionAid Vietnam (AAV) in Hanoi, participants heard a research report on the expected impacts of FTAs and BITs on long-term development goals, particularly in the food processing and electronics sectors.

According to the report, some 20% of businesses in the two sectors have learned about the tariff incentives offered by the FTAs and only 10% are aware of incentives for FDI enterprises in the sectors.

The report also pointed to challenges facing Vietnam in devising proper incentives for the two sectors due to commitments in the framework of the agreements.

Nguyen Anh Duong from the CIEM’s macro-economic policy section (VICEM) highlighted the space for other measures to promote the domestic industrial electronics sector, suggesting the Government devise incentives on interest rates, technical assistance, education and training and trade promotion.

Echoing Duong’s suggestion of Government support for domestic businesses, Pham Tien Dung from the Economica Vietnam said the Government can develop more sophisticated protection measures to support small- and medium-sized food processing enterprises in line with international integration.

He also stressed the role of associations in updating enterprises on international agreements as well as food safety and hygiene requirements and technical standards.

Vo Tri Thanh, CIEM Deputy Director, called for directive assistance from the Government for enterprises via a favourable business climate reflected by incentives on infrastructure facilities, preferential loans and technologies.

Tay Ninh records healthy half-year export revenue

Southern Tay Ninh province exported commodities worth nearly 1.14 billion USD in the first six months of 2015, an annual increase of 24 percent.

More than 80 percent of the figure, equal to 922 million USD, was generated by foreign-funded businesses operating in the locality.

The private sector accounted for 17.76 percent of the local export revenue, valued at 201 million USD.

The public sector saw an annual export reduction of 16 percent.

Major goods shipped abroad included apparel, footwear, rubber products, cassava starch and cashews.

Stable outsourcing contracts in the garment and textile as well as leather and footwear sectors helped local export propel its half-year momentum. Accordingly, the two industries reeled in 404 million USD and 246.8 million USD, respectively.

According to Le Thanh Cong, Vice Director of the Tay Ninh Department of Industry and Trade, the province will continue capitalising on its healthy exports and assist local enterprises to expand their markets overseas.

Tay Ninh targets 2 billion USD in export turnover by the end of this year, noted Cong.

Bac Giang to promote investment in industrial zones

The northeast province of Bac Giang will undertake a number of measures in the second half of this year to lure investment to local industrial zones, said Head of the Bac Giang Management Board of Industrial Zones Nguyen Anh Quyen.

They will include accelerating site clearances and building infrastructure facilities in industrial zones. The province is also simplifying administrative procedures and offering other incentives for investors.

Priority will be given to investors with strong finance, management and implementation capabilities.

The board will also strengthen management and supervision of project implementation and work proactively with relevant bodies to address difficulties facing investors and enterprises.

In the first half of this year, the board has granted licences to 26 projects, including 21 foreign investment projects, with new registered capital and total adjustment reaching 12.3 million USD and 244.53 million USD, respectively, up 142 percent from the same period last year.

The province is home to 218 valid projects, including 126 foreign invested, with total investment of 4.65 trillion VND (217.5 million USD) for domestic projects and 2.12 billion USD.

Binh Dinh eyes modern industrial province status by 2030

Binh Dinh aims to become a modern industrial province and a socio-economic development hub of the central key economic region and Vietnam by 2030.

Nearly 100 Vietnamese experts gathered at a discussion in Quy Nhon city on June 27 to comment on the province’s socio-economic development blueprint for 2016-2020.

Under the plan, Binh Dinh targets an average annual gross regional domestic product (GRDP) growth of 9.5-10 percent between 2016 and 2020 and 10-11 percent between 2021 and 2030.

It will increase the proportion of the service sector in the economic structure to 45 percent and that of the industry-construction sector to 34 percent by 2020, said Dr Phan Thanh Hai from Binh Dinh’s socio-economic development advisory group.

The province will transform Quy Nhon city into an economic force while developing the three pillars of sea-based economy, the Nhon Hoi economic zone and hi-tech agriculture, he added.

Dr Tran Du Lich, head of the advisory group, said Binh Dinh needs to thoroughly review its GRDP achievements in comparison with national and regional averages to set appropriate growth targets and make more concerted efforts.

He suggested provincial authorities hire foreign advisors to design development plans for five- and ten-year terms.

According to President of the Vietnam Academy of Social Sciences Nguyen Xuan Thang, the province should prioritise fishery logistics services both on the mainland and at sea as well as facilitate the processing industry, hi-tech agriculture and farm produce markets.

To that end, it is necessary to improve public administrative services, technological infrastructure and human resources training, he added.

Vietnamese firms on tough path to conquer US market

The US has been a target market for many Vietnamese businesses. Yet the 300 million-strong market is also a demanding market in terms of quality standards, requiring firms to exert efforts to penetrate, reported the Thoi bao Kinh te Viet Nam (Vietnam Economic Times).

The newspaper quoted Truong Thuy Linh, Vietnamese Trade Counsellor in Houston , as saying that the US market is diverse in its demands with strict requirements, a major obstacle for Vietnamese enterprises.

According to US statistics, Vietnam is now the 13 th largest supplier of goods to the US . The market share of Vietnamese products is predicted to expand once the Trans-Pacific Partnership is signed, given the stipulated series of tax cuts for Vietnamese firms.

At the same time, a large number of US firms are expected to increase partnerships with Vietnamese enterprises to explore each others’ markets, said Linh.

The US has been a key market for many Vietnamese products recently, including cashews and peppercorn.

According to a representative from the Vietnam Cashew Association, the sector views the US market as a priority. The sector has implemented a number of promotion activities to engage the promising market.

Peppercorn producers and exporters have exerted a number of efforts to seek technology solutions to improve quality and value, targeting high-class segments of the US market. Recently, the sector announced that it succeeded in producing high quality products that meet the US market’s demand.

Other strong Vietnamese export products to the US market include apparel, footwear, wood and wooden products and seafood. Particularly, half of garment and textile exports are bound for the US .

Statistics of the Vietnam Customs showed the US continues to be the largest consumer of Vietnam ’s garments and textiles in the first five months of this year with total revenue of 4.05 billion USD, up 10.5 percent year on year and accounting for 49.7 percent of the sector’s total exports.

At the same time, the footwear sector also earned 1.63 billion USD in the market, a rise of 30.6 percent annually, while electronics and accessories exports also enjoyed 1.09 billion USD in revenue.

Agriculturally, Vietnamese lychee and longan have been accepted into the US market since the end of 2014. It is forecast that Vietnam will ship 600 tonnes of lychee and 1,200 tonnes of longan to US every year, accounting for 17 percent and 69 percent of the market share, respectively.

According to Linh, Vietnam currently has three representative agencies in the US that are ready to support businesses in approaching the market.

Experts said that along with strict technical barriers and foot safety requirements by the US market, Vietnamese firms are also facing problems in poor competitiveness and high transport fees as well as long shipping durations when exporting goods to the market.

Statistics show that in 2014, trade between Vietnam and the US was 35 billion USD with 28.66 billion USD in Vietnamese exports, equivalent to 11.7 percent of Vietnam’s total exports.

In the first five months of this year, Vietnam shipped 12.77 billion USD worth of goods to the US.

Firms, officials talk about tax regulations

Business representatives met with customs and taxation officials yesterday in HCM City to resolve longstanding concerns about tax refunds and customs regulations.

A representative from Thanh Cong Textile, Garment, Investment and Trade Joint-Stock Company, for example, said that the Ministry of Finance had released regulations on tax refunds that had contradicted earlier rules.

A representative of the city's Taxation Department told the business people at the meeting that the Ministry of Finance had corrected the discrepancy.

He said that inspections would be carried out on any company that violates the law.

The remaining companies would receive tax refunds first, and inspections would occur later.

A representative from Hoa Sang Refrigerator Industry Company wanted to know about the value of official letters from the Finance Ministry to the general departments of Taxation and Customs.

"The letters don't have legal value but they guide enterprises and State offices to understand and enforce laws in the right way," a Customs Department official said.

He said that in July the city would organise a meeting with enterprises and customs officials. Enterprises would be able to submit questionable legal documents and ask for adjustments.

The Hoa Sang representative complained that the Ministry of Finance issued too many circulars, and that many of them were effective for only a short period.

"It's true and we have already reported this to the Ministry of Finance because circulars expire within two years. This is a hard time for the economy and the Ministry would like to support enterprises as soon as possible," the Customs official said.

A representative from the Riken Joint Venture company said they wanted to have their shares in US dollars received in 2006 to be valued at the current exchange rate.

A representative of the Taxation Department said that it could not be done because foreign partners could only contribute shares in Vietnamese dong.

Officials from Futsaco Viet Nam, which has construction projects in Laos and Cambodia, said they wanted to know about the necessary papers for bringing imported and Vietnamese raw materials to Laos and Cambodia.

A Customs representative said that if the company bought Vietnamese goods, they could export and if they buy imported commodities, they can "temporarily import and re-export" under regulations.

At the meeting, the Taxation Department also introduced the electronic tax payment system, which can help enterprises save time and money.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR