Overnight interest rates hit two-month high

Overnight interest rates in the inter-bank market hit a two-month high but liquidity of the banking system remained stable, a report from SSI Retail Research showed.

According to the report, inter-bank rates last week increased for the past two consecutive weeks, pushing the overnight rate to hit two-month high of 0.9 per cent, up 14 basis points from the previous week. The one-week rate also inched up by six basis points to 1.05 per cent.  

In contrast, the rates for one-month and three-month loans last week inched down by 1 and 4 basis points, respectively.

However, the liquidity of the banking system last week remained good as the central bank still issued bills worth of VNĐ18.9 trillion (US$832.6 million) during the week to withdraw the money out of the system.

As for the bond market, SSI Retail Research’s report showed that the State Treasury last week held Government bond auctions for four tenors of 5-year, 7-year, 10-year, and 15 years. The bond offer of all tenors was worth VNĐ2.15 trillion.

The bid for the bonds was continuously increased, reaching nearly VNĐ7.39 trillion, up more than VNĐ1 trillion against the previous auction.

At the auctions, 5-year, 7-year and 10-year bonds worth nearly VNĐ1.17 trillion were successfully issued.

Developers plan new Nha Trang resort

Real estate developer Đồi Xanh Nha Trang Company has announced plans for a resort project called Marina Hill in Nha Trang.

It said the resort would have 68 villas built on Thiên Nga Hill at heights ranging from 20m to 75m above the ocean.

Marina Hill will earmark 75 per cent of its 47,000sq.m for infrastructure and amenities like green spaces, a golf course, playground, gymnasium, yoga centre, tennis court, swimming pool, coffee shop and a restaurant.

The project is close to Phạm Văn Đồng Road, a new centre of Nha Trang City, and two kilometres from Trần Phú B beach.

The developer said it would be the first project in Nha Trang to “go green – go organic,” which refers to a trend of growing everything from trees to grass using organic fertilisers.

Units will be handed over to buyers in the first quarter of 2019.

Resort in Viet Nam receives green standard     

The Coastal Hill in the FLC Quy Nhon Complex in the central province of Thanh Hoa is the first resort in Viet Nam to attain Leadership in Energy and Environmental Design (LEED) silver certification.

This is the most widely used green building rating system in the world. The project, by property developer FLC Group, meets seven criteria for a green resort, including construction, management to increase quality, protection of residents’s health and the natural environment. It earns a total of 50 to 59 points of the LEED.

The Coastal Hill was designed by architects from Baumschlager Eberle Architekten (BE) – one of Austria’s leading design companies in developing green buildings.

Accordingly, all of the hotel’s rooms have direct contact with natural light and air. Its building density is also low, at 12.4 per cent, while the remaining areas are green.

The project uses environmentally friendly building materials and renewable energies.

The wild animal park, FLC Zoo Safari Park, is located quite close to the hotel with more than 1,000 animals, to offer new experiences to tourists.

Located at Eo Gio – the most favourable location in the complex, the Coastal Hill has 1,500 rooms, the highest number of rooms in the country. It has also been equipped with an infinity pool, a golf course and an entertainment area.

With a total land area of 7,300ha nationwide, the group has developed many five-star resorts, including FLC Sam Son, FLC Vinh Phuc, FLC Ha Long, FLC Hai Phong and FLC Quy Nhon.

In May, FLC and the Viet Nam Real Estate Association signed an agreement on developing green buildings in Viet Nam, thus contributing to the development of a green property market.

In Viet Nam, the trend of green buildings has become popular in the real estate sector, especially at apartments and resort projects.

By the end of April, the country was home to 60 green buildings, including 19 of them meeting the LEED criteria.

This has been a modest figure in comparison with other countries in the region such as Malaysia, with 125 green buildings and Singapore with 1,200 ones.      

Aquatic products expected to rake in US$9 billion by 2020     

Viet Nam expects to achieve 6 per cent growth in aquaculture and US$9 billion from aquatic product exports by 2020.

The goals were set in the targeted programme on sustainable fishery development for the 2016-20 period recently approved by Prime Minister Nguyen Xuan Phuc.

The programme prioritises aquaculture development through enhancing research capacity and modernising breeding production system with a focus placed on key staples like tra fish, shrimps, molluscs, tilapia fish and clam.

The Good Agricultural Practices (GAP) will be applied in key seafood farming areas which have comprehensive infrastructure in the Mekong Delta, Red River Delta and central coastal localities. The move aims to ensure that all farming zones will meet advanced standards on quality and food safety and hygiene.

Infrastructures for the zones must suit socio-economic and environmental conditions in coastal areas and three monitoring centres will be built to oversee the environment’s quality and warn aquatic diseases.

Regarding aquatic product processing and trade development, the fishery sector will prioritise products with high added value, branches out trade marks for shrimps, tra fish, molluscs, tilapia fish and tuna.

It will recover and develop traditional aquatic processing villages, control quality of processed products to meet demands of both domestic and foreign markets as well as address trade barriers.

The targeted programme also sets the protection of aquatic resources as a key mission for the fishery sector. 

Dragon fruit prices rise sharply     

Dragon fruit prices at Cho Gao Dragon Fruit Co-operative in the southern province of Tien Giang are increasing sharply, creating economic advantages for farmers.

The price of white flesh dragon fruit is fluctuating between VND18,000 and VND20,000 (79 US cents and 88 US cents) per kilo while red flesh dragon fruit ranges from VND40,000 to VND45,000 per kilo, some three times higher than the previous month.

Nguyen Thi Trinh, a dragon fruit grower in Cho Gao District’s Tan Thuan Binh Ward, said at this time, Cho Gao dragon fruit is an unseasonable crop, therefore supply is not much and the price tends to increase sharply, bringing more profit to local.

Tran Van Hoa, head of the Agriculture and Rural Development Division of Cho Gao District, said the local area specialises in growing 5,430ha of dragon fruit, of which red flesh dragon fruit accounts for some 1,200ha. Every year, the specialised area yields some 100,000 tonnes to supply for both domestic and export markets.

In order to avoid the situation of "bumper crop but lower price," each year, farmers harvest three to four crops, of which one is a seasonable crop (from May to August) while the rest are unseasonable crops.

Annual productivity reaches over 30 tonnes per hectare. Highly productive farmers achieve a yield of 40-60 tonnes per hectare.

According to Ngo Huu The, secretary of the Cho Gao District Party Committee, thanks to this dragon fruit specialised area, local farmers have overcome difficulties, escaped from poverty and built sustainable industries. Many farmers earn billions of dong following a bumper dragon crop, which has significantly transformed Cho Gao’s rural and agricultural situation.

APEC launches MSME market     

Asia-Pacific Economic Co-operation (APEC) on Tuesday introduced a new business-to-business platform for enabling cross-border trade among under-represented but economically vital micro, small, and medium enterprises (MSMEs) in the Asia-Pacific.

APEC is showcasing small firms from member economies and helping them to connect with compatible production and supply chain partners. It also details tariffs and trade regulations as well as provides a portal to support services to help small businesses in the region build their trading operations.

Philippine Trade and Industry Secretary Ramon M. Lopez said there was a huge range of market opportunities for micro enterprises in the Asia-Pacific, particularly with advances in mobile technology and e-commerce.

“The APEC Marketplace will make it easier for small businesses to trade and, in the process, boost their competitiveness and growth capacity in the region,” Lopez said. “The benefits of wider participation in trade could be very significant for APEC economies and our people’s livelihoods.”

The platform caters to small firms that account for nearly all businesses and the majority of employment in the APEC region, and have substantial room for export growth. They range from handicraft suppliers in Luzon, to auto and machinery parts producers in Ohio, Nagoya and HCM City, to coffee growers and processors in the highlands of Papua New Guinea.

APEC economies aim to grow the APEC Marketplace’s directory of small businesses with export potential and, in turn, open up market opportunities for these firms in the Asia-Pacific through business matching with companies seeking value-adding goods and services suppliers.

This is part of APEC’s implementation of the Iloilo Initiative for growing global micro, small and medium enterprises, endorsed by the region’s SME ministers in 2015 and supported by parallel efforts underway to unlock small business trade.

“Micro enterprises have to be interconnected with the rest of the world as it has become one village. We don’t want small businesses and the communities that depend on them to be left behind,” said Papua New Guinea’s Trade, Commerce and Industry Minister Wera Mori.

“Now that we are in the digital age, people must be enabled to come out from local areas and export what they can produce domestically to markets in the Asia-Pacific and beyond,” he said. “We are working in APEC to help people find formal employment through small businesses that are developed and integrated.”

APEC ministers and officials will take complementary steps to facilitate women’s entrepreneurship and small business trade during the APEC Women and the Economy Forum in Hue City from September 26-29. 

Dong Nai posts record trade surplus     

The southern province of Dong Nai posted a record trade surplus of US$1.7 million in the first nine months of this year.

This was revealed by the provincial Department of Industry and Trade. The province reached an estimated export turnover of $12.5 billion in the period, a year-on-year rise of 11 per cent, while its import topped $10.8 billion.

Among the province’s main export products were footwear, garment-textile, timber products and fibre, as well as steel and iron, electronics and computers and machine and equipment.

Of them, footwear took the lead in terms of export value in the nine-month period, earning the province more than $2.52 billion, up 11 per cent, year-on-year. The value is expected to hit approximately $3.46 billion in the whole year.

Dinh Sy Phuc from Taekwang Vina Joint Stock Company in the province’s Bien Hoa Industrial Zone 2, which is one of four leading footwear exporters in the province, said his company produces more than two million pairs of shoes per month and most products are exported.

Since the beginning of this year, orders have been pouring in, so his company has increased capacity by some 15 per cent compared to the same period last year, Phuc said.

Dong Nai’s Statistics Office predicted that with the current growth momentum, the province’s export value was likely to fetch $17 billion by this year-end. That could result in a new record trade surplus of nearly $2.2 billion.

Businesses in Dong Nai are taking advantage of the free trade agreements that Viet Nam has already inked with international countries and blocs, and the establishment of the ASEAN Economic Community to foster their export turnover.

Director of the Department of Industry and Trade Duong Minh Dung said the province’s exports to large traditional markets such as the United States, Japan, South Korea and Europe have experienced a significant growth in the January-September period.

The high growth would be maintained as many provincial businesses have received orders until early 2018, he said.

The province is now home to 3,500 enterprises involving import-export activities. The figure is expected to rise when many foreign-invested firms come into operation in the near future, said the provincial Statistics Office. 

Khanh Hoa doubles size of its SEZ     

The central province of Khanh Hoa is considering increasing the size of its proposed North Van Phong special economic zone from the planned 66,000 hectares to 111,000ha.

This was revealed at a meeting on Monday between the province’s People’s Committee and a National Assembly task force set up to monitor the zone’s establishment.

"The North Van Phong special economic zone has a lot of advantages with regard to weather, transportation and trained human resources," Le Duc Vinh, chairman of the People’s Committee, said.

"Khanh Hoa will focus on four key features in the zone: port and logistics; trading and international finance service; luxury entertainment and resorts; and a casino.”

The zone’s infrastructure is estimated to cost around VND11 trillion (US$500 million) and the province plans to hire an international consultancy for design and development.

The province also plans to have a special administrative set-up for the zone.

"The zone will be under the management of the People’s Committee and strategic investors will take part in the management," Vinh explained.

“Only strategic projects with an investment of over $300 million can lease land for 99 years.”

Nguyen Khac Dinh, chairman of the National Assembly’s Law Commission, wondered how the province could ensure visa exemption since roads and the railway run through the zone.

Hoang Thanh Tung, deputy chairman of the commission, said while the province should give the new administration enough powers, it should not give it too much.

Uong Chu Luu, deputy chairman of the National Assembly, said: "I agree with the expansion plan because the zone’s ideal location means it has great scope for development.

"We must prepare well in all aspects, even military and national security." 

Binh Duong surpasses goal     

The southern province of Binh Duong reported on Tuesday that it had attained 140 per cent of its annual target in foreign direct investment (FDI) during the first nine months of the year.

In a meeting with investors, the provincial Department of Investment and Planning said total FDI in the first nine months of the year stood at nearly US$1.97 billion, a jump of 27 per cent compared with the same period last year.

During the period, the province attracted 148 new projects valued at a total of $1.165 billion.

Another 87 projects added capital of $765 million, according to the department. About 90 per cent of the projects are in industrial zones.

Binh Duong has a total of nearly 3,000 FDI projects, worth over $27.7 billion from 60 countries and territories.

“The provincial investment environment has improved towards sustainable development. The advantageous fields in the province such as the electrical power industry, electronics, mechanics, pharmaceuticals, chemicals, and service and trading (and others) have attracted investors,” said Nguyen Thanh Truc, director of the Department of Investment and Planning.

“The number of foreign investors visiting Binh Duong to study the investment environment has increased significantly year on year,” he said.

In order to create a better investment climate, the province’s leaders and authorities work regularly with investors to learn about their difficulties and help them solve problems. This is the second time that the province has met with investors this year.

Yesterday, the leaders from the provincial People’s Committee and departments met representatives of more than 60 companies operating in the province to answer all of their questions.

The main topics discussed by the companies were social and medical insurance, taxes, natural disaster prevention and control of funds and overtime shift, as well as other issues.

Along with regular meetings with investors, Binh Duong has continued its strong investment in infrastructure.

Tran Thanh Liem, chairman of the provincial People’s Committee, said that ideas related to legal issues at the meeting would be collected and submitted to the Government in order to help enterprises solve problems.

Truc said that during the past years, Binh Duong had invested in infrastructure, especially the transport network, which facilitates connections with HCM City, the Mekong Delta, the Southeast region and southern Central Highlands.

Many important transport routes have been invested and put into operation such as Binh Duong Boulevard and My Phuoc – Tan Van, which connects industrial parks with seaports and airports.

The industrial parks, new urban areas and services are highly developed to better serve investors.

Currently, the province has 28 industrial parks with a total area of over 10,560 ha and 71 per cent of rental rate. It also has 11 industrial clusters with total 802 ha with a 55 per cent rental rate.

The province has also approved a master plan for industrial park development. By 2020, there will be 34 industrial parks with total area of nearly 15,000ha.

An industrial - service - urban complex has been established on an area of 4,000ha with a total of 400,000 residents. The complex has spurred development of new urban areas in neighbouring localities for the Bau Bang service and urban area.

Binh Duong is located in the centre of the southern key economic zone, the most dynamic region of the country. It is a strategic traffic gateway between the Central Highlands region, central provinces and HCM City.

FDI is an essential source for the province’s socio-economic development and economic structure.

Last year, FDI contributed over 49 per cent of total social investment, over 67 per cent industrial production value, and over 82 per cent of export turnover to the province. 

HCM City sees rising registered capital of new firms

More than 29,900 enterprises were established with total registered capital of nearly 396.5 trillion VND (17.44 billion USD) in HCM City in the first nine months of the year, according to the city’s People’s Committee.

This was an increase of 13 percent in the number of newly established businesses and 84.5 percent in registered capital, with most of the new businesses located mainly in Districts 1, Tan Binh, Go Vap, Binh Thanh and Binh Tan.

In addition, more than 44,000 operating companies have pledged an additional registered capital of 218.3 billion VND, up 11.2 percent and 49.6 percent, respectively, compared to the same period last year.

Overall, the total registered capital of new and operating companies in HCM City in the first nine months was 614.8 billion VND, a year-on-year increase of 70.4 percent.

Real-estate service and trading companies had the largest registered capital with more than 156.6 trillion VND, accounting for 39.5 percent of the city’s total, representing an increase of nearly 75 percent year-on-year.

Auto and motorbike repair and sales companies made up 16.2 percent with over 64.3 trillion VND, up 66.6 percent, and construction had over 52.8 trillion VND, a twofold increase over the same period last year.

Notably, the science and technology, design consultancy and marketing sectors saw over 29.5 trillion VND registered capital in the period, a two-fold year-on year increase.

The city, which targets having 500,000 operating enterprises by 2020, is assisting and encouraging business households to become official enterprises.

Nearly 1,400 business households are now official enterprises.

Aquatic exports hit 5.91 billion USD in nine months

Aquatic exports in September 2017 are estimated to reach 696 million USD, pushing total exports of the products in the first nine months of this year to 5.91 billion USD, up 18.1 percent from the same period last year.

According to the Ministry of Agriculture and Rural Development, leading markets for Vietnamese aquatic products include the US, Japan, China and the Republic of Korea. The four markets consumed 55.5 percent of total products.

Strong growth was seen in China with 63.3 percent, the Netherlands with 35.1 percent, and the UK with 29.5 percent. 

Meanwhile, the country imported 124 million USD worth of aquatic products in September and 1.04 billion USD in the January-September period, the ministry reported.

Due to poor supply and high demand, both tra fish and shrimp prices in the Mekong Delta region surged sharply domestically.- 

Oil and gas sector urged to adjust business strategy

The oil and gas sector needs to adjust its production and business strategy so that it could compete with foreign rivals locally and internationally, said participants at a seminar in Hanoi on September 26.

They agreed that the sector should urgently build a human resources management system in accordance with international standards and put emphasis on the gas industry and consider it the driving force for the development of the whole sector.

At the same time, research units of the Vietnam National Oil and Gas Group (PetroVietnam) should focus on research and application of technology to reduce the cost of exploration, exploitation and to diversify processed oil products.

The oil and gas industry is one of the country’s key economic sectors, making important contributions to the national economy, but it is facing exceptionally tough challenges, especially in the context of deeper international integration, they said.

Vu Van Ha, deputy editor-in-chief of the Communist Review, told seminar participants that the oil and gas industry, represented by PetroVietnam, annually contributed 25-30 percent of the State’s budget revenues.

While state-owned enterprises (excluding the oil and gas industry) contributed about 42 percent of GDP, PetroVietnam separately accounted for 16–18 percent of GDP, the highest level of one company in the 2008-2015 period, Ha said.

In addition, the development of the oil and gas industry contributed to national energy security, playing an important role in Vietnam’s sea strategy and contributing to the protection of national sovereignty, he added.

Its achievements raised Vietnam position in the community of oil producing countries and contributed to enhancing the country’s international reputation, while boosting international cooperation and investment activities in key areas including exploration and exploitation, oil refineries, gas services and power services.

Overall, the industry helped enhance the value of oil and gas resources, promoting national industrialisation and modernisation and improving the competitive position of Vietnam’s oil and gas industry in the world, Ha said.

However, he added, the national oil and gas industry was facing tough goals.

Under the development strategy of the oil and gas industry towards 2025, the industry aims to annually increase oil and gas reserves to 35-40 million tonnes of oil equivalent, oil and gas exploitation will increase by 10-36 percent for each five-year period, of which the exploitation from overseas oil field must be 3 to 5 times higher than the current levels, the sector’s annual revenue is expected to grow by 10 to 15 percent.

"The future for the country’s oil and gas industry will be tougher as the major oil fields near the shores are close to exhausting production. The calling for foreign investment in oil and gas exploration will also be more difficult," Ha said.

Many large PetroVietnam projects lacked capital and access to credit while borrowing from international organisations is getting increasingly harder, he said. In addition, the company’s skilled human resources supply was becoming limited. Implementation of key projects abroad also faced obstacles, greatly affecting the achievements of short-term and long-term goals of the whole sector, Ha added.

Truong Dinh Tuyen, former minister of trade, said that under the free trade agreements and commitments that Vietnam had signed, import taxes on diesel and mazut would be zeroed out, also affecting the domestic oil and gas industry.

Thus, local suppliers would face stiff competition from not only foreign investors but also domestic importers due to the tariff elimination, Tuyen said.

With the establishment of the ASEAN Economic Community (AEC), in addition to the tariff reduction issue, there would be a shift in the labour force within the industry, leading to “brain drain” for the sector, he forecast. For example, some of PetroVietnam’s highly-skilled workers might move to other oil and gas groups from ASEAN countries if offered better working conditions.

The seminar was co-held by the Communist Review, a magazine of the Communist Party of Vietnam, and the Vietnam Union of Science and Technology Associations.

Rolls-Royce importer seeks extension of tax payment deadline     

Regal Motor Cars Corporation, the retailer of Rolls-Royce cars in Viet Nam, has asked for an extension of the tax payment deadline.

In this regard, the corporation’s proposal was sent to Viet Nam’s General Department of Customs and Hai Phong Customs Department.

Prior to this, the Hai Phong Customs Department issued Decision No 3330/QD-HQHP to fix the tax of Regal Motor at an amount of VND7.35 billion (US$323,788) and charged for the corporation’s late payment amount of nearly VND1.504 billion. The reason for fixing the tax is to re-determine the taxable value of the company’s imported goods.

Regal Motor said they would comply with the tax assessment decision of the Customs office. However, due to difficulties in doing business, the firm proposed to first implement a part of the tax obligations, equivalent to VND1.35 billion, while the rest will be handed in the first quarter of 2018. 

HCM City wants ports master plan tweaked

With the Government set to make changes to the master plan for ports in the south-eastern region, HCM City wants its ports master plan amended too, according to the municipal People’s Committee (PC).

The PC said on Monday that the city would like to develop a port system aligned with its road infrastructure and domestic waterway system to facilitate easy transport and logistics convenience.

The city has hired a consultancy to study how to link its rail system with its ports, especially Cát Lái and Hiệp Phước.

The city, complaining about the lack of piers for passenger transport, also wants the Ministry of Transport to tweak the master plan for local, inter-provincial and tourist ports.

It has said Tân Thuận Port should be relocated before 2020 to enable construction of Thủ Thiêm Bridge 4.

Other ports in the city centre should also be moved after 2020 and no development or expansion should be done to them until then, it has said.

Until 2020 piers should not be built at Bến Nghé and Phú Hữu ports, it has said, adding they should only be considered after the two begin operation. 

APEC policy partnership promotes women’s economic participation

The second APEC Policy Partnership on Women and the Economy (PPWE 2) Meeting kicked off in Hue city, the central province of Thua Thien-Hue, on September 26 with the aim to continue promoting gender equality and women’s economic participation.

The two-day PPWE 2 is the first activity of the 2017 APEC Women and the Economy Forum that lasts from September 26 to 29 in Hue.

Opening the event, Vietnam’s Deputy Minister of Labour, Invalids and Social Affairs Dao Hong Lan said the building and implementation of gender responsive policies and programmes in APEC are necessary to enhance APEC forums’ coordination in gender equality issues and the inclusion of these issues in each forum for the sake of women’s socio-economic progress and gender equality in the region.

"We do this to affirm that women have an important role and contributions to the economic development in APEC while helping to put forth equal approaches in terms of economy, labour and job for both women and men,” she added.

She expressed her hope that the PPWE 2 will attain expected outcomes, including updating the progress of implementing and suggesting next steps for the realisation of PPWE’s strategic plan for 2015-2018, strengthening cooperation among APEC economies and working groups in the implementation of common initiatives, finalising and approving the APEC gender inclusion guidelines, and completing a draft ministers’ statement to be submitted to the High-Level Policy Dialogue on Women and the Economy later this week.

The 2017 APEC Women and the Economy Forum is a chance for Vietnam and other APEC economies to contribute to common achievements and efforts, she noted, applauding APEC leaders’ recognition of the importance of women in the region.

The forum focuses on enhancing women’s economic inclusion and empowerment in a changing world. Its priorities are promoting gender equality for inclusive economic growth, improving the competitiveness and creativeness of micro-, small- and medium-sized enterprises owned by women, and narrowing the gender gap in human resources development.

Founded in 1989, the Asia-Pacific Economic Cooperation (APEC) with 21 economies is the Asia Pacific’s premier economic forum. The primary goal is to support sustainable economic growth and prosperity in the Asia-Pacific region.

The APEC economies account for 39 percent of the world population, 57 percent of the world GDP and 47 percent of the global trade, according to statistics in 2014.

The APEC Year 2017 is taking place in Vietnam under the theme “Creating New Dynamism, Fostering a Shared Future”. The country used to host APEC events for the first time in 2006.

Senior Vice President and WB Group General Counsel to visit Vietnam

Senior Vice President and World Bank Group General Counsel Sandie Okoro will make her first official visit to Vietnam from September 26-27.

While in the country, she is expected to meet with representatives of State Bank of Vietnam (SBV), the Ministry of Finance, and the Ministry of Justice to discuss issues of mutual interest and confirm the World Bank Group’s continuous support to Vietnam.

She will also meet with women representatives of private sector and students from Hanoi Law University, and visit a World Bank-financed project—that facilitates urban basic infrastructure upgrading and service improvement, water supply and environmental sanitation, urban roads and bridges. 

Vietnam-Australia trade ties thriving

Vietnam and Australia have opportunities to advance their economic and trade ties, said Secretary of the Ho Chi Minh City Party Committee Nguyen Thien Nhan. 

At a reception for Australian Ambassador to Vietnam Craig Chittick in HCM City on September 26, Nhan said the Vietnamese metropolis has good ties with many Australian localities, voicing his hope that relations will continue to thrive. 

For his part, the ambassador highlighted the rapid development of economic relations between Vietnam and Australia, with two-way trade increasing sharply annually and more flights launched to connect the two countries. 

Also, bilateral education collaboration is also thriving, he said, noting that tens of thousands of Vietnamese are studying in Australia. 

Australia is the 19th largest investor in Vietnam with 407 projects worth 1.85 billion USD and is also an important market of Vietnamese investors who are running 36 projects with total capital of nearly 200 million USD in the country.

Australia is the seventh largest trade partner of Vietnam. Two-way trade reached about 5.3 billion USD in 2016, with Vietnam’s exports valued at 2.86 billion USD.

Vietnam’s automobile sales falls despite attractive discounts

Although many carmakers in Vietnam have applied discounts and promotions, car sales in the first eight months of the year dipped 6 percent year-on-year to 177,000 units, according to the Vietnam Automobile Manufacturers’ Association (VAMA).

Many automakers launched promotions to trigger sales in August. Honda Vietnam cut the prices of its Civic, Accord and CR-V models by nearly 200 million VND (8,800 USD). Thaco slashed tens of millions of VND off best sellers like Kia Morning and Cerato. Meanwhile, Huyndai Thanh Cong offered discounts of 40-70 million VND (1,760- 3,080 USD).

However, sales of tourist, commercial and specialised cars experienced respective year-on-year declines of 4 percent, 7 percent and 12 percent.

The VAMA once forecast its car sales would grow 10 percent in 2017; however, the sluggish automobile market makes it unlikely this goal will be hit.

Slow sales during August-September, or lunar July, which is known as Thang Co hon (Month of lonely spirits) also contributed to the slow sales, as people traditionally keep purchases to a minimum during the unlucky period.

Additionally, consumers are awaiting further reductions in automobile prices as tariffs on completely-built-up (CBU) cars imported from ASEAN nations will fall to zero under the ASEAN Free Trade Agreement which will take effect at the beginning of 2018.

By the end of August, imports of CBU vehicles fell 5 percent to 65,490 units. Thailand remained the largest automobile exporter to Vietnam with 23,840 units, followed by Indonesia with 15,540 units and the Republic of Korea with 5,980 units.

Car sellers attributed the decline in CBU vehicles to the country’s unstable automobile market.

Automobile producers expect big sales at the outset of 2018, also lunar November, as Vietnamese customers tend to spend a lot during end-of-the-year shopping season.

Agro-forestry-fishery exports hit 27 billion USD in nine months

Export turnover of agro-forestry-aquatic products reached 3.04 billion USD in September, bringing the nine-month figure to nearly 27 billion USD, up 14.1 percent year-on-year.

According to the Ministry of Agriculture and Rural Development, export earnings from farm produce in the January-September period were estimated at 14.38 billion USD, up 17.7 percent year-on-year.

Meanwhile, aquatic and forestry products raked in 5.91 billion USD and 5.78 billion USD, representing respective year-on-year increases of 18.1 percent and 10.6 percent. 

Vietnam exported 466,000 tonnes of rice worth 210 million USD in September, raising the nine-month volume and value to 4.57 million tonnes and 2.02 billion USD, up 20.8 percent and 18.6 percent, respectively. China remained the biggest importer of rice from Vietnam, accounting for 38.8 percent. 

The country earned 201 million USD from shipping abroad 86,000 tonnes of coffee in September. The nine-month volume and value were 1.11 million tonnes and 2.54 billion USD, down 20.7 percent in volume but up 1 percent in value.

Rubber exports hit 174,000 tonnes worth 279 million USD in September, raising the nine-month figures to 979,000 tonnes and 1.66 billion USD, up 13.3 percent and 52.7 percent year on year, respectively.

The shipment of cashew nuts surged to 32,000 tonnes, worth 320 million USD in September. The total volume shipped abroad in the first nine months reached 257,000 tonnes worth 2.55 billion USD, falling 0.2 percent in volume, yet gaining 25 percent in value from the same period of 2016.

Tea exports were estimated at 103,000 tonnes with a value of 165 million USD in the reviewed period, up 12.6 percent and 11.9 percent, respectively.

Vietnam shipped 2.64 billion USD worth of vegetables and fruits in the first nine months of 2017, up 44.2 percent year on year. China, Japan, the US and the Republic of Korea were the four leading importers of Vietnamese vegetables and fruits, accounting for a combined total of 85 percent of the export value.

Pepper exports were estimated at 181,000 tonnes in nine months, bringing home 966 million USD. The figures represented a 23 percent rise in volume but a 19 percent drop in value.

The ministry also reported that Vietnam spent 21.15 billion USD on importing agro-forestry-aquatic products, up 19 percent from the same period last year.

VN Index narrows loss on bargain hunting

Vietnam’s benchmark VN-Index fell slightly on September 26, covering part of losses made in intraday trading as investors hunted for low-priced stocks.

The VN-Index on the HCM Stock Exchange finished Tuesday at 805.35 points, recovering from its intraday-low of 801.66 points.

The benchmark index was almost unchanged from the previous session’s end level of 805.58 points. It fell nearly 0.2 percent on September 25.

Market trading liquidity showed signs of improvement with more than 171 million shares traded, worth 3.65 trillion VND (162.4 million USD).

September 26’s trading figures were up 14.7 percent in trading volume and 10 percent in trading value compared to the previous session.

According to Saigon-Hanoi Securities Company (SHS), the VN-Index fell slightly on September 26 as investors began to hunt for declining stocks when the index was around the supporting level of 802 points.

SHS said in its daily report that rising market liquidity also proved investors’ attention was re-directed to the stock market.

Large-cap stocks performed well with 16 of the 30 top companies by market capitalisation and trading liquidity in the VN30 Index advancing.

Gainers included PetroVietnam Drilling and Well Services (PVD), PetroVietnam Gas (GAS), consumer goods producer Masan Group (MSN) and Sacombank (STB).

PVD and GAS gained 6.9 percent and 1.5 percent, respectively, as oil prices showed recent improvements and were headed to 60 USD a barrel.

Brent crude was down 0.6 per cent to trade at 58.67 USD a barrel. It has increased by total 13 percent in the last month.

“The stock market was also supported by foreign buyers, who ended as net buyers on the southern exchange,” SHS said. Foreign investors posted a net buy value of 27.3 billion VND while they sold total net value of 58.6 billion VND on September 25.

On the negative side, FLC Faros Construction (ROS), brewer Sabeco (SAB) and gas station operator Petrolimex (PLX) were the stocks that weighed down the southern market.

“In the current conditions, the VN Index is expected to move sideways and accumulate in the range of 802-810 points on September 27,” SHS said, adding that it requires strong efforts to break away from this range and continue rising.

On the Hanoi Stock Exchange, the HNX Index gained 0.53 percent to close at 107.91 points. It has recorded a fifth gaining session with total growth of 3 percent.

More than 80 million shares were exchanged on the northern market, worth 949 billion VND.

Health officials seek measures to eliminate rabies

Health care officials from 63 localities nationwide gathered at a conference in Bac Giang city of the northern province of Bac Giang on September 26 to discuss measures to control and erase rabies in Vietnam.

Director of the Son La province’s Preventive Medicine Centre Nguyen Tien Dung pointed to crucial need for stronger engagement of localities in fighting rabies, especially in controlling pet dogs.

Head of the Department of Breeding and Animal Health of Bac Giang City Hoang Dang Huyen held that it is necessary to increase safety measures to prevent dogs attacks on humans as well as vaccination for dogs against rabies. He also stressed the importance of communications in the community on the need to apply measures to prevent rabies.

Vietnam aims to thoroughly control rabies in 2021 when the ratio of localities with high risk of rabies in humans reduces by 60 percent and the fatality of the disease is down 60 percent compared to the 2011-2015 period, thus heading towards eliminating the disease in the future.

Participants pointed to difficulties in rabies prevention, including poor awareness of the community and a lack of effective plans to fight rabies.

They proposed that in 2021, it is important to improve the awareness of the community, local governments and relevant agencies in the field.

The Ministry of Agriculture and Rural Development should also build plans for active control of the disease, they said, adding that Vietnam should asks for international organisations’ support in vaccine against rabies.

According to the Department of Animal Health under the Ministry of Agriculture and Rural Development, rabies has occurred in 150 countries in the globe, killing about 60,000 people and forcing 15 million people to take preventive medicine each year.

Rabies causes average economic loss of estimated 8.6 billion USD each year globally, it added.

In Vietnam, last year, only 2.9 million out of 7.7 million pet dogs, or 38.5 percent, received vaccines against rabies.

Reference exchange rate up by 8 VND

The State Bank of Vietnam set its reference VND/USD exchange rate at 22,464 VND/USD on September 27, up by 8 VND from the day ago. 

With the current /- 3 percent VND/USD trading band, the ceiling exchange rate is 23,137 VND per USD and the floor rate is 21,791 VND per USD. 

Major commercial banks made slight changes to their rates.

Vietcombank set its buying rate at 22,695 VND and its selling rate at 22,765 VND, per USD, down by 5 VND from the rates offered on September 26.

BIDV offered 22,700 VND (buying) and 22,770 VND (selling), per USD, unchanged from the day ago.

Techcombank set its buying rate at 22,680 VND per USD, unchanged from September 26 and decreased its selling rate by 5 VND to 22,775 VND per USD.

8.600 new enterprises established in September

A total of 8,600 new enterprises with total registered capital of nearly 80.5 trillion VND (3.54 billion USD) were set up in September, according to the Ministry of Planning and Investment.

The registered capital dropped 39 percent compared with the previous month, while the number of newly established enterprises declined by 31 percent.

The ministry said the sharp decreases both in the number of new firms and registered capital were because September fell in July according to the lunar calendar, which is considered a “Ghost Month”, making people hesitate to establish a new firm.

However, in the first nine months of the year, the country had some 94,000 new firms with total registered capital of more than 900 trillion VND. The figures posted 15.4 percent and 43.5 percent year-on-year increases in terms of business number and amount of registered capital.

Average registered capital was 9.6 billion VND for each business in the January-September period, down 11.4 percent from the same period last year.

The number of labourers in the newly established companies in the period was 886,453, posting 4.5 percent year-on-year decrease. The ministry also reported that in the first nine months of the year, some 30,846 firms dissolved or ceased operations.

More than 21,100 enterprises also resumed their operation in the first nine months of the year.

One-member limited companies had the highest number with over 53,000 firms, accounting for 56 percent of the total number of newly-established enterprises in the nine-month period. However, one-member limited companies accounted for 33 percent of total registered capital of the new firms, with an average registered capital of 5.6 billion VND each, 4 billion VND lower than the average capital of all business types.

Two-member limited companies took the second position with some 22,000 firms accounting for 20 percent of the total. Their average registered capital was 8 billion VND each.

Average registered capital of newly-established joint stock companies was highest with 27 billion VND per firm.

The East Southern and Red River Delta regions had the highest number of new companies with 39,600 and 28.400 firms, respectively.

Delta needs to address challenges, boost links

Experts have emphasised the need to address challenges and boost linkages for sustainable development in the Mekong Delta region.

Attending the Conference on Sustainable and Climate-Resilient Development of the Mekong Delta, which opened in Can Tho city on September 26, they agreed that the Mekong Delta is facing existential threats. According to studies, 39 percent of the delta could be underwater by the year 2100 and some areas of the coast are already eroding at a rate of 30 metres a year.

Early last year, the region suffered the worst drought in 90 years, which, together with rising sea levels, led to a heavy intrusion of saltwater into rice-growing areas. The mangrove forests along the coast, which protect the hinterland from floods and storms, are also in dramatic decline.

These problems threaten the future of the Mekong Delta and its ability to provide essential ecosystem services in which the communities of the delta and millions of people around the world depend.

Christian Henckes, Director of the Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ)’s Integrated Coastal Management Programme in Hanoi, said the biggest risk was the land sinking into the ocean at a faster rate than ever. “The land has subsided by several centimetres each year, especially in Ca Mau, Soc Trang and Bac Lieu,” he said.

As the region faces rising sea levels, more land will be underwater. “I think we won’t lose the whole delta, but I also think that we can’t maintain it exactly as it is,” Henckes said.

“We should expect a common understanding on how our finances can be mobilised and how the government is going to spend them,” he added.

Because of the risk of land loss along the coast, Henckes said that “we need right now to protect the frontline of the coast against the sea, but also to figure out the second line of defense for 20-30 metres inside the area, just in case the first line breaks, to protect the people and villages.”

“We’ve been working on the Integrated Coastal Management Programme for nearly 10 years now. We began focusing on coastal protection and reinforcing the dyke system, as well as supporting the people who live behind the dyke to help them increase their incomes,” he said.

Now, the programme is focusing on agriculture and governance, getting provinces to work together, and investing in the projects that are needed most.

“This year, for example, we are working with Vietnam on a complete coastal protection plan for 720km of the Vietnamese coast,” he said.

According to Hermen Borst, deputy delta commissioner of the Netherlands Delta Programme, his country has developed a special programme with two goals related to climate change: flood prevention (the Netherlands is a highly urbanized area) and sufficient fresh water provision for the economy, now and in the future.

“We also have a special dedicated fund for the implementation of proposed measures,” he said.

The Mekong Delta, home to 17 million people, is Vietnam’s most important agricultural region. Producing 55 percent of the country’s rice, it feeds more than 245 million people worldwide.

The region is also the country’s third largest industrial region after the metropolitan areas of HCM City and Hanoi.

The conference is jointly organised by the Government Office and the ministries of Planning and Investment, Natural Resources and Environment, and Agriculture and Rural Development.

On September 27, the event continues with a speech by its chair, Prime Minister Nguyen Xuan Phuc.