VN’s coffee sector targets US$5-6b export by 2030     

Viet Nam’s coffee sector targets earning US$5-6 billion from exports by 2030, the Viet Nam Coffee and Cocoa Association (VCCA) said.

During a press briefing in HCM City late last week to introduce activities within the framework of Viet Nam Coffee Day (December 10), VCCA Chairman Luong Van Tu said the sector is restructuring itself to improve competitiveness.

To achieve the goal, the sector plans to adopt advanced and eco-friendly technologies to increase the rate of processing products of high added value, including instant and ground coffee, to 30 per cent from the current 10 per cent.

Over the past years, coffee has become an important agricultural product of the country, generating jobs for millions of workers and raking in billions of dollars from export to 80 countries worldwide.

Viet Nam’s coffee currently accounts for 15 per cent of global consumption. The country is the world’s largest robusta coffee producer and exporter and the second largest producer of coffee beans.

To develop the coffee industry, the Prime Minister recently designated December 10, the day President Ho Chi Minh visited Dong Hieu coffee plantation in the central province of Nghe An 55 years ago, as “Viet Nam Coffee Day.”

The festival “Viet Nam Coffee Day 2016” is slated for December 8-11 in HCM City with a range of activities, including a ceremony to announce the PM’s decision on Viet Nam Coffee Day, coffee tasting sessions, an event to honour individuals and organisations who are dedicated to the sector, an announcement of the list of prestigious coffee manufacturers and processors and several seminars.

The event is expected to allow businesses to seek partners and market their products to domestic and foreign consumers. 

11-month CPI climbs 2.47 percent

The consumer price index (CPI) in the past 11 months of 2016 posted a year-on-year increase of 2.47 percent, the General Statistics Office (GSO) announced on November 28.

In November alone, the CPI rose 0.48 percent from the previous month, 4.52 percent against the same period last year, and 4.5 percent from last December.

The situation was mainly driven by the strong surge of prices in food due to the increasing demand in the wedding season, said Director of the GSO’s Price Statistics Department Do Thi Ngoc.

An upturn was seen in nine out of the 11 major goods and service groups, with the biggest increase reported in transport services at 1.63 percent. It was followed by medicine and health care services (0.9 percent), food and catering services (0.49 percent), housing and construction materials (0.49 percent), textiles, headwear and footwear (0.24 percent). 

The group experiencing a price decline was telecommunication (0.02 percent), while the education group’s price was uncharged.

The GSO said many other factors could cause pressure on the CPI in November, including prices of electricity for daily activities, tourism services, and gold.

The November basic inflation (excluding food and fresh foodstuff, energy and State-controlled commodities such as healthcare and education services) climbed 0.1 percent from the previous month and 1.87 percent year-on-year. Basic inflation of the past 11 months of 2016 rose 1.82 percent against the same period last year. 

The basic inflation from January to November fluctuated within a narrow amplitude from 1.64 percent to 1.88 percent, reflecting a healthy monetary policy that helps to stabilize the macro-economy.

December’s CPI is forecast to be higher than that of November due to the rising demand in food, beverage, cigarettes, and textiles serving upcoming festivals in the end of the year.

Tan Cang – Cai Mep port handles 1 millionth TEU

The year 2016 went down in history of Tan Cang – Cai Mep International Terminal (TCIT) as it has handled the 1 millionth TEU (twenty-foot equivalent unit) for the first time in six years of operation.

TCIT in southern Ba Ria-Vung Tau province is a deep-water port near the confluence of Cai Mep River and Thi Vai River.

The terminal has handled nearly 4.5 million TEUs since it officially began operating on January 15, 2011, but this is the first time it has received 1 million TEUs in a single year.

It is currently the second biggest container port in Vietnam, after Tan Cang Cat Lai based in District 2 of Ho Chi Minh City.

It is a joint venture between Saigon Newport Corporation and three partners, namely Mitsui O.S.K Line (Japan), Hanjin Transportation (the Republic of Korea) and Wanhai Lines (China’s Taiwan).

TCIT, Tan Cang – Cai Mep International Terminal, and Tan Cang – Cai Mep Thi Vai form a continuous port complex of Saigon Newport Corporation in southern Ba Ria-Vung Tau province.

The port, about 70km from the centre of Ho Chi Minh City, is connected by roads to industrial parks in Ba Ria-Vung Tau and nearby Binh Duong and Dong Nai provinces. It is also favourable for linking with other ports in the Mekong Delta such as Cao Lanh and Sa Dec in Dong Thap province, My Thoi in An Giang province, and Cai Cui in Can Tho city.

The terminal is also a popular point of transit for goods traded between Vietnam and Cambodia.

Can Tho, Australia to stimulate trade, agriculture

Can Tho wants to enhance affiliations in trade and agriculture with Australia in the coming time, stated Vice Chairman of the municipal People’s Committee Truong Quang Hoai Nam.

He made the statement at a meeting with Australian Ambassador to Vietnam Craig Chittick in the Mekong Delta city on November 28.

The official said bilateral trade has felt short of potential, with only two Australian-invested projects in the production of vegetable oil products and beverages in Can Tho.  

In 2015, Can Tho exported commodities worth 8.2 million USD to Australia. In the first ten months of this year, thanks to Australia allowing local fruit to enter its market, the figure leapt to 11 million USD.

Australian imports in Can Tho, mostly materials and fishery products, were valued at 245,000 USD last year, increasing 20-fold to 4 million USD as of October 2016.

Nam expected more joint projects on high-tech farming will be implemented and asked for Australian assistance for his city in climate change adaptation, water resources management and sanitation.

For his part, the Australian diplomat said his country cares for prosperous outlook in Vietnam, particularly in the Mekong Delta.

Joint infrastructure projects between the two countries have facilitated development in the delta, Chittick added, citing the construction of the My Thuan bridge and the upcoming building of the Cao Lanh bridge. 

Australia pays a particular interest in water resources management in the area and has sponsored to ensure water supply from upstream Mekong River for the delta, he stressed.

Industrial production index increases 7.3 percent

The industrial production index (IPI) is estimated to increase by 7.2 percent in November and by 7.3 percent in the past 11 months, according to the General Statistics Office (GSO).

The increases in the processing and manufacturing sector, electricity production and distribution and water supply, wastewater and garbage treatment helped offset a decline in the mining sector.

Provinces and cities with high IPI growth include Quang Nam (30.6 percent), Thai Nguyen (24.5 percent), Hai Phong (16.7 percent) and Da Nang (13 percent).

The inventory index of the processing and manufacturing sector by November 1, 2016, increased 8.8 percent from the previous year but textiles and garment, chemical production and chemical products, electricity equipment production saw the inventory index down.

According to the GSO, by November 1, 2016, the number of labourers working in the industrial sector increased 4.3 percent from one year earlier. 

The State sector has seen a decline of 2.6 percent in the number of workers while the figure of the non-State sector rose by 1.7 percent. The workforce in foreign direct investment (FDI) enterprises climbed by 7.4 percent.

Provinces with large industrial workforce growth are Thai Nguyen (28.4 percent), Hai Phong (10.3 percent), Vinh Phuc (8.4 percent) and Ba Ria - Vung Tau (7.9 percent).

Vietnamese dragon fruit struggles to find markets

Since exports of dragon fruit, mainly through the border with China, are volatile, farmers want the fruit to be promoted in the local market, heard a conference held by the Ministry of Trade and Industry and Binh Thuan province last week.

According to figures from the Ministry of Agriculture and Rural Development (MARD), dragon fruit is grown on 37,000ha and the annual output is some 630,000 tonnes.

This includes 26,500ha in Binh Thuan, which produces over 500,000 tonnes.

It is also grown in the provinces of Long An, Tien Giang and Vinh Long, with the area under the fruit being constantly expanded.

MARD estimates that 15-20 percent of the fruit is consumed in the domestic market and 2-3 percent is exported elsewhere with the remaining 80-85 percent traded over the border with Chinese companies.

Do Minh Kinh, Deputy Director of the Binh Thuan Department of Trade and Industry, said there was an overwhelming dependence on the Chinese market, which makes exports of the fruit unstable and risky.

The output in these southern provinces is huge, and with much of their exports heading for China, their trucks are often forced to queue at the border which causes the fruits to spoil and farmers and exporters to suffer losses.

According to Ngo Van Tuan, Director of the Tien Giang province Department of Trade and Industry, the local market is ignored.

Many farmers grow the fruit to VietGAP and GlobalGAP standards for exporting to markets that demand such quality, but these fruits do not fetch higher prices than normal ones, meaning farmers prefer to invest in the latter.

To promote production and add value, provinces growing this fruit needed to launch trade promotion activities and persuade local and foreign companies to join the processing and consumption chains, Deputy Minister of Trade and Industry Ho Thi Kim Thoa said.

Processors were encouraged to diversify and make other products, she said.

Delegates from the provinces of Binh Thuan, Long An and Tien Giang urged the Ministry of Agriculture and Rural Development to make zoning plans for dragon fruit cultivation around the country, and to draft criteria for using agro-chemicals to improve the quality of the fruit.

Hanoi vows to take lead in improving business climate

Hanoi will take the lead in improving the business climate and supporting enterprises since their formation, Vice Chairman of the municipal People’s Committee Nguyen Doan Toan said at a dialogue between the city’s authorities and entrepreneurs on November 28.

A steering board has been set up to tackle difficulties for businesses, he said, adding that it has proved its efficiency.

The municipal administration ordered its subordinate agencies to ensure the transparency of their decisions, policies, administrative procedures, planning and land use plans, Toan added.

Meanwhile, Secretary of the Hanoi Party Committee Hoang Trung Hai said this year has recorded vigorous growth of local businesses, both start-ups and new investment plans.

Nearly 23,000 enterprises have been established so far this year, raising the number of firms operating in the city to 202,255. They have greatly created a large number of jobs for workers, improve local people’s income and boost the city’s economic growth.

Hai believed that the increase proves the effectiveness of business support policies of the Government and Hanoi while demonstrating companies’ trust in the administration.

However, Hanoi’s authorities also admitted that local businesses, especially small- and medium-sized enterprises, have still faced a range of difficulties regarding access to capital sources, land, markets, and sci-tech application. Some policies have failed to fuel businesses’ development.

Do Quang Hien, Chairman of the Hanoi Small and Medium-sized Enterprises Association, pointed out troublesome and overlapping administrative procedures, elaborating that many firms have conducted online business registration, but they have to directly meet managerial agencies to change some contents. 

Procedures for land withdrawal and allocation, compensation for land clearance and granting land use right certifications remain complicated, he said, asking the city to step up efforts to address these difficulties.

At the dialogue, representatives of companies also brought up issues they are encountering during their operations.

Fielding their questions, Chairman of the municipal People’s Committee Nguyen Duc Chung promised that the city’s relevant agencies will review and deal with the problems. 

He noted a special task force gathering specialists from municipal departments will be set up on January 1, 2017. They will work at one office and be ready to settle all opinions of enterprises at one time.

Thai companies assist Quang Nam to unlock tourism potential

Two Thai companies and the central province of Quang Nam on November 28 signed a Memorandum of Understanding (MoU) on a project to develop, promote and provide services for tourism development.

The signatories to the MoU are the Quang Nam Department of Culture, Sports and Tourism and Thailand’s Index Creative Village Public Limited Company and Vietnam Centre Limited Company.

Under the MoU, the two Thai companies will assist Quang Nam with activities in the Quang Nam Heritage Festival that includes the light and sound festival celebrating the Lunar New Year 2017, Hoi An ancient town’s Night Market festival, the Quang Nam Heritage Journey festival, the international Marathon race in Hoi An city. They also share Quang Nam with experience in developing agriculture in green tourism.

Apart from possessing the two world heritages - the ancient town of Hoi An and the My Son Sanctuary, Quang Nam boats the Cham Islands Biosphere Reserve and more than 60 national and provincial cultural heritages.

The province has advantages in developing tangible and intangible culture tourism products, maritime tourism, inland tourism, community-based tourism, and craft village tourism.

However, Quang Nam’s tourism potential has yet developed properly to raise the sector’s effectiveness and contribute to local social-economic development.

With the implementation of the project with the Thai partners, Quang Nam hopes that its potential and tourism attractiveness will be fully and widely introduced to international and local tourists.

Rice exports see sharp drop due to market difficulty

Vietnam exported 353,000 tonnes of rice for 156 million USD, raising total exported volume in January-November to 4.54 million tonnes with a value of 2 billion USD, reported the Ministry of Agriculture and Rural Development (MARD).

The figures represented a rise of 25 percent in volume but a 20.3 percent drop in value compared to 11 months in 2015, according to the ministry, adding that the slow-down of rice export activity was due to decreased demand of rice in the world. 

China, the largest market of Vietnamese rice, bought 36 percent of Vietnam’s total exported rice. However, the official export quota to the market for this year was finished.

Noting that Vietnam’s rice export is facing many difficulties, MARD Deputy Minister Tran Thanh Nam asked the Department of Agro-Forestry-Fishery and Salt Industry to promptly organise a working trip to the Philippines to seek solutions to increase exports to the market.

He also asked for measures to find a way to continue exporting rice to China. In the first 10 months of 2016, Vietnam shipped to China 1.51 million tonnes of rice for 678.7 million USD, down 22.5 percent in volume and 13.7 percent in value over the same period last year.

Ghana is the second market of Vietnam with 11.5 percent of market share. Vietnam exported 442,200 tonnes to the market for 217.1 million USD, up 38.6 percent in volume and 33.3 percent in value. Meanwhile, the fourth largest market, Indonesia, saw a surge of 53.5 percent.

Similar to China, downturn was seen in many other markets, including the Philippines with 61.6 percent, Malaysia, 51.5 percent, Singapore, 34.1 percent, the Ivory Coast, 29.1 percent, and the US, 28.3 percent.

In November, rice price in the Mekong Delta region experienced a slight rise of 100-300 VND per kilo.

China likely becomes Vietnam’s biggest tra fish market

China (including Hong Kong) is more likely to become Vietnam’s largest tra fish market in 2017, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Tra fish exports to mainland China and Hong Kong in the first ten months of this year reached 235.5 million USD, up 76 percent against the same period last year, said VASEP, adding that tra fish export to this market has grown constantly in the past two years.

China has surpassed the EU to become Vietnam’s second largest tra fish market as of September 2016.

The Chinese customers’ demand for tra fish import increased due to reasonable price, said the Vietnam Trade Promotion Office in Chongquing (China).

Although the US is the Vietnam’s largest tra fish market, high anti-dumping taxes and the catfish investigation programme of the US Department of Agriculture are barriers for Vietnamese tra fish exporters.

Therefore, the association forecasted that tra fish export to the US market in 2017 will be not as high as that in 2016.

It is also the reason for China to possibly become the largest market for Vietnamese tra fish in 2017, said the VASEP.

Tra fish material markets in Mekong Delta provinces are now sluggish in terms of purchasing power and price, as tra fish processing plants were buying and producing moderately after collecting sufficient goods to export to the EU, the US and China on Christmas and New Year occasions.

State securities commission awarded with Independence Order

The Finance Ministry’s State Securities Commission (SSC) was awarded with Independence Order, second class, during a ceremony in Hanoi on November 28 on the occasion of the 20th anniversary of its traditional day. 

Speaking at the event, Prime Minister Nguyen Xuan Phuc hailed the SSC as a channel to raise mid and long-term capital for the economy, equitisation and restructure of State-owned enterprises over the past 20 years. 

He asked the SSC to continue fine-tuning management mechanisms, ensuring openness, transparency, fairness and efficiency, contributing to economic restructuring, renewal of growth model, and global integration. 

Finance Minister Dinh Tien Dung said the ministry will continue directing the securities sector to refine policies in line with market mechanisms and international practices while improving the State management on the securities market. 

SSC Chairman Vu Bang, for his part, said more than 2 quadrillion VND (90 billion USD) has been raised since 2011 via the securities market, 1.4 quadrillion VND (63.6 billion USD) of them are via stocks, a 4.75-fold increase from 2005-2010, contributing to 23 percent of the total social investment. 

Meanwhile, the bond market grows 31 percent annually – the highest among emerging economies in East Asia and ASEAN 3. In 2010-2015, more than 795.8 trillion VND (36.17 billion USD) was mobilised for the State budget. 

As of November 2016, the stock market capitalisation hit 1.79 quadrillion VND (81.36 billion USD), or nearly 43 percent of the gross domestic product (GDP). Overall, the securities market value accounted for 65 percent of the GDP. 

According to the SSC, the total number of securities accounts has soared from 3,000 in 2000 to more than 1.67 million, 18,500 of them are owned by foreign investors.

PVN opens lab to analyse domestic fuel

The Viet Nam National Oil and Gas Group (PVN) has opened a laboratory to analyse domestically produced fuel, and an office for Viet Nam Petroleum Institute (VPI) in HCM City.

The facilities are part of a project that includes the construction of several manufacturing and support facilities spanning over 40,000sqm.

The analysis laboratory centre, located at Sai Gon Hi-tech Park, is equipped with advanced facilities and software and is expected to analyse more than 90 per cent of the domestically produced fuel, thereby saving time and reducing delivery fees.

VPI director Nguyen Anh Duc said the work will help PVN and his institute master analysis engineering and laboratory equipment, thus promoting research, development and technology transfer. It will help improve international co-operation and link research, application and training.

The centre will also help VPI develop a database of sample analysis results and provide information for PVN and others that will aid in the planning of policies and strategies, thus enhancing competitiveness, training capabilities and human resources for the sector.

PVN’s deputy director general Nguyen Quynh Lam underlined the group’s focus on technological studies, application and innovation, and said this project would improve the institute’s research abilities, optimise its technologies, produce chemicals and petroleum and oil products and help protect the environment.

He urged VPI to use the facility to provide more scientific and technological solutions for stakeholders in the sector.

The group will continue to provide investment for the institute to implement its assignments, Lam said.

In 2016, so far VPI has implemented more than 300 science-technology research contracts and carried out numerous sample analyses. 

FPT corporation launches education organisation

FPT corporation officially launched its education organisation, called FPT Education, on the occasion of the 10th anniversary of the establishment of FPT University.

It also announced the important direction its development strategy would take in the next few years.

FPT Education aims to develop a system of training schools from secondary to higher education and become a reliable partner for other institutions globally by ensuring excellent quality of its student exchange programme and introducing FPT’s students to the world.

FPT Education will also apply a consistent training philosophy associated with practical demand, business needs, globalisation and internationalisation of education. It has set a target of becoming a global education organisation with 10-fold growth and enrolling 150,000 students by 2025.

As a member of FPT Corporation, the largest ICT Corporation in Viet Nam with branches in several countries, FPT University has maintained an outstanding curriculum with high practicality, including on-the-job training component and state-of-the-art facilities. The employment rate is 96-98 per cent within three months of completing graduation.

Tek Experts expands operations in VN

Tek Experts Vietnam unveiled its new headquarters on Sunday in Ha Noi, marking a new phase in the company's growth in Viet Nam.

The spacious and cutting-edge new office is part of Tek Experts' plan to launch Viet Nam as one of its strategic markets on the world map.

Yaniv Natan, founder of Tek Experts, said “After almost four years in Viet Nam, we’ve grown from a small team of only 20 to being an operation that now employs more than 250, and this is just the start of our journey. We have ambitions plans to grow the size of our Vietnamese operation to more than a thousand in the next 2-3 years because we believe Hanoi is perfectly placed to help us better serve Tek Experts’ customers in Southeast Asia and internationally.”

“Tek Experts’ philosophy is to offer a highly customer-centric approach to technical support and professional services and we believe Hanoi offers the perfect combination of a business-friendly environment and a strong talent base that is crucial to our development and growth.” Yaniv added.

Nguyen Manh Tuong, country manager of Tek Experts Vietnam, said, “At Tek Experts, we constantly strive to offer the best environment for our people to grow, develop their skills and expertise and become the leaders we know they can be. We’re committed to providing the best-in-class training programmes, supporting our people throughout their careers and, with our new state-of-the-art office, providing an exciting and innovative environment for them to work.

400 cars examined as part of iCar Care Day

More than 400 owners and their cars took part in iCar Care Day 2016 in HCM City last weekend (Nov 26-27).

Jointly organised by Benh Vien O To and National Traffic Safety Committee, the event, held for the fourth time, offered free consultancy for drivers and their cars.

Unlike previous years, modern technology was used during the examination of the cars. After checking the auto, all information was processed by software that diagnosed specific problems.

At the event, oragnisers offered gifts to children and families whose relatives had been injured or had died in traffic accidents.

Ford reports record sales in Viet Nam

Ford reported sales rose by 14 per cent year-on-year in October to 2,430 units, its best-ever monthly numbers.

In the year-to-date the US company has seen sales soar by 50 per cent to 23,527 vehicles, in the process remaining one of the fastest growing in Viet Nam.

“Our full line-up of class-leading Ford vehicles continues to attract a wide range of Vietnamese customers who appreciate the unmatched value in their respective segments” Pham Van Dung, managing director, Ford Vietnam, said.

The wide appeal of the segment-defining Ranger continued in October with monthly sales rising 13 per cent year-on-year to 1,136 units.

Sales of the EcoSport, which remains the best-selling compact SUV, rose 40 percent to 501 units. Customers continued to appreciate the EcoSport’s unique combination of small-car practicality and the agility of an SUV.

The Transit commercial van also delivered a record month with 605 units, pushing the year’s sales up 36 per cent to 5969 units.

International expo on homeland security next week in Ha Noi

Homeland Security Expo 2016, an international exhibition on homeland security, counter terrorism and police work, will be held for the first time in Ha Noi at the International Centre for Exhibitions on December 7-8.

The exhibition, co-organised by Nexgen Exhibitions Pvt. Ltd and EiFEC Company Limited, aims to introduce solutions, equipment and technology for the security and defense sectors.

According to the organisers, against the backdrop of heavy spending on homeland security and defense in the Asian region, and Viet Nam in particular, the expo will be instrumental in presenting the latest equipment, technology and products for homeland and public security.

The organisers also expect the expo to provide an opportunity for participants to exchange experiences and technology, while introducing their products to potential customers. It aims to provide a foundation connecting producers and distributors and to enable domestic and international enterprises to boost cooperation, share experience and transfer technology.

The Homeland Security Expo 2016 will also provide an opportunity for countries, organisations and enterprises to seek cooperation and investment.

The event will host 50 booths of companies and agencies from leading countries in the security and defense sectors, including Russia, the US, India, Germany, Denmark, the UK, South Korea, Japan, the Czech Republic, Ukraine, Singapore, United Arab Emirates and Viet Nam.

Securities sector marks 20th anniversary

State Securities Commission (SSC) was honoured with Independence Order, second class, during a ceremony in Hanoi on November 28 to mark its 20th anniversary.

In his speech, Prime Minister Nguyen Xuan Phuc asked the relevant agencies to develop the securities market as a channel for attracting medium-to-long term investment. 

He underlined the importance of sustaining the securities market, increase its scale and quality, diversify products and ensure transparency. 

Prime Minister Phuc said, the 20-year development of Vietnam’s securities market validates our correct decision in the process of building Vietnam’s socialist-oriented market economy. 

The Vietnamese government is committed to maintaining macro-economic stability, fine-tuning a transparent legal framework, and a fair, open, and robust business environment, and protecting the legitimate rights of investors. 

It’s necessary to strengthen and restructure the economy, continue SOEs equitization, and create the best possible conditions for the development of the securities market, the cabinet leader said.

Finance Minister Dinh Tien Dung said the ministry will continue directing the securities sector to fine-tune policies in line with market mechanisms and international practices while improving the State management on the securities market. 

As of November 2016, the stock market capitalisation reached US$ 81.36 billion or nearly 43% of the gross domestic product (GDP). Overall, the securities market value accounted for 65% of the GDP. 

Cashew nut exports, prices increase on tight supplies

Exports of cashew nuts jumped 5.8% in volume and 16.9% in value year-on-year for the ten months leading up to November 2016, according to the latest statistics from the General Department of Vietnam Customs.

For the 10-month period January-October, cashew processors shipped roughly 290,936 metric tons of the precious nuts to foreign markets, generating US$2.34 billion in total revenue.

Exports to the US, China and the Netherlands – the three largest consumers of Vietnam cashew nuts – were US$795.4 million, US$332.7 million and US$315.8 million representing market shares of 34%, 24% and 23% respectively.

The cashew market is currently experiencing its highest prices in nearly five years, said the Department, due to low supplies caused by a combination of severe droughts and heavy rains earlier this year.

Vietnam accounts for 42% of the globe’s processed cashew nut exports. However, many of the cashew nuts are imported from West Africa, which is still experiencing severe droughts that could also affect next year’s crop.

For the ten month period, cashew nut processors imported 913,000 metric tons of raw cashew nuts, primarily from West Africa, valued at US$1.4 billion, up 17% in volume and 39% in value, the Department reported.

Vietnam, Indonesia meet to foster stronger trade relations

Vietnam and Indonesia are two of the fastest growing emerging markets around the globe, having experienced high gross domestic product (GDP) growth rates ranging 6-7% over the last decade.

In addition to being part of both the Association of Southeast Asian Nations (ASEAN) and APEC, the two countries have large and rapidly growing populations and possess many other common features and attributes. 

Many international investors report they find Indonesia and Vietnam attractive destinations to do business in and that they are strong competitors for transnational companies limited investment dollars.

Significant investments in infrastructure in both countries over the past 10 years, a rapidly growing consumer class and regulatory reforms related to foreign investments in manufacturing, they say, have created attractive business climates with many exciting opportunities for transnational companies.

It is this high level of competition between the business communities of Vietnam and Indonesia that gave rise to a meeting earlier this month between Vietnam President Tran Dai Quang and Indonesia Vice President Jusuf Kalla.

They met on the margins of the 2016 Asia-Pacific Economic Cooperation (APEC) Summit in Lima, Peru, specifically to head off what they see as the makings of a potential trade war among APEC members.

"APEC is now seeing a new development in the form of a trade war. It is important to stick to the ideals for which it was formed," said Indonesian Vice President Kalla, according to widely distributed news reports in the Indonesian press.

On his way to Lima, said the Indonesian press, Vice President Kalla and his entourage made a transit stop at the Juan Alvarez Acapulco airport in Mexico, where in a statement he said he would urge the APEC Summit to avoid a trade war.

President Quang and Vice President Kalla held the bilateral meeting specifically to discuss increased collaboration between the two countries private sectors along with increased cooperation of the public sectors in trade and investment in large number of economic segments.

Vice President Kalla also explained that APEC, which was formed in the Indonesian West Java provincial city of Bogor in 1994, had as its overarching objective the goal of boosting trade and investment among its members.

At that time, he pointed out, the US and Japan were the two leading economies that were driving the world economy. Now, China is emerging as a viable alternative to replace them in that role.

According to Mr Kalla, the APEC summit in Peru played a pivotal role in deciding the direction of the global economy and the answer to the question of whether the US will dominate the economy or China take the initiative.

Mr Kalla further noted that in the beginning, APEC had many ceremonial activities such as seminars and other events, but now the forum had shifted to largely just trade issues, noting that a refocus back on the broader societal aspect is in order.

He predicted that the US will not be playing a dominant role in the future because the US would opt for economic protection and withdraw from the path of globalization it has been on over the past eight years.

He also predicted that Vietnam, Indonesian trade relations would strengthen in line with the new economic order unfolding in the world.

Coca Cola funds management capacity enhancement program

Coca Cola Beverage Co., Ltd. and the Vietnam Institute for International and Public Diplomacy Studies have joined forces to implement a training program for officials at local and central agencies to enhance their management capacity in the period 2016-2017.

The program aims to focus on international issues, laws, public administration and international negotiation skills.

After participating in the training course, trainees will receive further training to improve their skills and broaden knowledge for the nation’s development.

The first training courses were held in October and November in Hanoi and Ho Chi Minh City.

The next training courses are set to take place in late November in Danang and mid-December in Hanoi. 

Govt firm on 6.7% growth target

Despite calls for the 2017 growth target to be lowered to around 6%, Prime Minister Nguyen Xuan Phuc has said the Government still sticks with 6.7%.

He said some had suggested playing safe by setting the growth goal of 6% but the Government had not swayed in spite of difficulties. Just one percentage point of growth can create 300,000 jobs, Phuc said at a meeting in Hai An District last Friday with Haiphong voters.

Phuc said Vietnam should strive to be among the leading ASEAN economies in terms of investment environment, income and development level.

In response to voters’ concerns over the fall of the Vietnamese dong currency against the U.S. dollar, the Government leader said the nation's foreign exchange reserves are sufficient to intervene into the market but authorities at all levels should not be complacent in macro-economic management.

Voter Tran The Dung from Hai An Business Association expressed concern over the lack of directional cues as whether the Trans-Pacific Partnership (TPP) trade pact would be ratified or not is unknown.

Prime Minister Phuc said Vietnam had signed and concluded talks over 12 free trade agreements, so with or without the TPP, Vietnam will continue to proactively integrate into the world and be an independent economy.

Voter Tran Thanh Thao touched on the issue about former Minister of Industry and Trade Vu Huy Hoang who has been disciplined, wondering how the Government would deal with all the documents Hoang signed while he was in office.

PM Phuc said the case had been handled according to guidelines of the Secretariat and the current law. In the coming time, clear mechanisms would be adopted to reward or discipline officials, he added.

Voter Ngo Van Nhan from Dong Hai 2 Ward said the Dinh Vu DAP fertilizer plant was polluting the environment with local residents hit hard by its waste and emissions. The Prime Minister told Haiphong City to launch an inspection and take appropriate measures to remedy the situation.

On the same day, Phuc attended the groundbreaking ceremony of a five-star hotel and luxury serviced apartment complex called Chuo with total investment capital of US$200 million.

SBV: U.S. dollar may weaken against VN dong

The recent rise of the U.S. dollar against the Vietnam dong, believed to be triggered by a knee-jerk reaction to dollar rallies on world markets, may ease in the coming time, said Nguyen Thi Hong, deputy governor of the State Bank of Vietnam (SBV).

In a statement posted on its website last week, the SBV, the nation's central bank, said it is now prepared to intervene in the foreign exchange market by injecting dollars into the banking system.   

Since early this year, Hong said, the central bank has set the daily reference exchange rate between the two currencies while the trading band of 3% on either side has applied to daily exchange rates quoted by commercial banks. This has helped banks well respond to domestic and world market movements.

The dollar and other hard currencies have become strongly volatile on world markets. The SBV said dollar demand in Vietnam has risen insignificantly while dollar liquidity in the banking system has been ample.  

The recent strengthening of the dollar over the past few days is attributable to a knee-jerk reaction to world market movements, so the dollar is forecast to weaken against the local currency in the coming time. The SBV said that from now until the year-end, dollar supply could be boosted by more export revenue, incoming remittances and disbursements of foreign direct and indirect investment capital while a sudden pickup in dollar demand is unlikely.

Under the SBV’s Circular 24, banks can give foreign currency loans to businesses to make offshore payments until the end of 2017.

The central bank, Hong said, is monitoring macro-economic developments and domestic and world currency markets to adopt timely measures to ensure stability for Vietnam’s foreign exchange market.

Banks quoted the dollar at VND22,700-22,710 for buying and VND22,790-22,795 for selling last Thursday, up VND100 from the previous day.

Meanwhile, the central bank set the reference exchange rate between the dong and the dollar at VND22,131 per dollar, up VND13 versus last Wednesday. The reference exchange rate was VND21,890 early this year.

With the trading band of 3% on either side, the exchange rate can hover in the range of VND21,467 and VND22,795.

At the close last Friday, Vietcombank bought one dollar at VND22,680 and sold it at VND22,780. At Techcombank, its respective prices were VND22,650 and VND22,785.

The reference exchange rate between the two currencies was VND22,137 per dollar last Friday, meaning banks could trade the dollar at between VND21,473 and VND22,801.

Transport licensing available online

The public and the corporate sector can now obtain transport business licenses and do relevant procedures at dichvucong.mt.gov.vn.

The online public service will allow businesses and people to accomplish procedures and make service fee payments online. They can send requests and receive results online or via mail.

These online services are initially piloted at the departments of transport of five provinces and cities, namely Hanoi, Haiphong, Danang, HCMC and Can Tho. It is expected to expand to the rest of the country from January 1, 2017.

For the road system, this is the second online service to be launched by the Ministry of Transport. Earlier, renewals of driving licenses have been made online to cut time and cost.

Around 32 public services of the inland waterways sector were put online last Tuesday.

HCMC to build new IP

HCMC vice chairman Le Thanh Liem has signed a decision establishing Le Minh Xuan 2 Industrial Park (IP) in HCMC’s Binh Chanh District, with around VND1 trillion (US$44 million).

Le Minh Xuan 2 IP will cover a total of around 320 hectares in the commune of the same name. Le Minh Xuan 2 IP Investment Corporation will develop infrastructure for the IP in six years.

The park will house factories using advanced and environmentally friendly technologies.

In a related development, Prime Minister Nguyen Xuan Phuc has approved the Le Minh Xuan IP expansion project.

Binh Chanh Construction Investment Shareholding Company (BCCI) plans to spend nearly VND1.15 trillion (US$51.6 million) expanding the existing Le Minh Xuan IP by nearly 110 hectares.

By end-September, there had been 1,413 valid projects worth a total US$9.32 billion operating at industrial parks and export processing zones in the city, with 564 of them FDI projects capitalized at US$5.47 billion and 849 domestic projects at US$3.83 billion, according to the HCMC Export Processing and Industrial Zones Authority (Hepza).

EGN extends network to Vietnam

The Executives’ Global Network (EGN) has expanded its network to Vietnam, with the first meeting of 25 business executives happening last Friday.

Nick Jonsson, managing director of EGN Vietnam, said Vietnam is the 15th nation where the network has a representative office. The country is a fast growing market, which is attractive to foreign investors.

The first group of business executives in Vietnam includes leaders of large companies such as CB Richard Ellis (CBRE), Diageo, Siemens and Tetra Pak.

No competitors are placed in the same group, Jonsson said. Members have to pay a joining fee of US$2,600 per year, which can be fully refunded if they are not satisfied with their group within the first three months.

Members can contact other members worldwide through their accounts on the website, but EGN will moderate their interactions. They will have one-on-one meetings six times a year to build business relationships and share knowledge to develop personally and professionally, and create value for their companies.

EGN is preparing to launch other groups with members holding different positions such as finance and marketing directors. The network is expected to set up around five networking groups for Vietnam-based business executives in 2017.

EGN is an independent, professional network for business executives, with more 14,000 members from 15 countries such as Denmark, Norway, Sweden, Finland, Germany, the Netherlands and Japan.

Govt commits to support supporting industries

he Ministry of Industry and Trade is mapping out a program for propping up supporting industries in the 2016-2025 period with a total budget of around VND2,360 billion (US$104 million).

Speaking at a seminar on solutions for developing supporting industries, Truong Thanh Hoai, head of the ministry's Heavy Industry Department, said supporting industries have remained underdeveloped due to a lack of cooperation between enterprises and local authorities, low production capacity, ad hoc development policy changes and lower-than-expected State investment.

The capacity of supporting industries for the manufacturing sector remains low, meeting 85-90% of parts needs in engineering and motorcycle sectors, 10-15% in the automobile industry, 30-35% in the electronic appliances sector, 50% in the leather-footwear sector, and 45% in the garment-textile industry.

Hoai said the ministry is expected to submit the program to the Government for approval soon. In particular, the State would assist producers in supporting industries to become suppliers of domestic and foreign manufacturers, attract foreign investment, improve the quality of human resources, carry out research and development activities, and have technologies transferred from abroad to make parts and materials.

Deputy Prime Minister Trinh Dinh Dung said at the seminar that there have been numerous solutions and policies for supporting industries and now they should be put into play.

VN to issue rules on digital currency and assets

The Government has told the Ministry of Justice to issue regulations to put digital currencies and assets under control though the State Bank of Vietnam does not recognize crypto-currencies like bitcoin.

The ministry has undertaken consultations on issuance of relevant regulations and Government decrees governing electronic currencies and assets would be issued to guide the implementation of the 2015 Civil Code.

A draft decree on virtual currencies is expected to be complete in December 2017 and another on digital assets will be ready in March 2018.

According to the Ministry of Justice, though bitcoin and other types of digital currency are not recognized by authorities in Vietnam and many other nations, the global market capitalization of bitcoin exceeds US$10 billion. Disputes and crime involving electronic currency have happened worldwide, so this matter must be put under control.

In 2009 the European Union issued a directive on the taking up, pursuit and prudential supervision of the business of electronic money institutions and the UK made the same move in 2011. China is also mulling similar regulations.

Business matching conference brings 369 deals

Enterprises in HCMC and other parts of the nation struck 369 deals at a producer-distributor connectivity conference last week.

The conference in HCMC attracted 954 enterprises from 38 of the country's 63 provinces and cities, including 631 specialty suppliers, 42 distributors and 124 exporters.

This is a program aimed at building a linkage between producers and distributors nationwide. The program was first kicked off in 2012, with 198 enterprises from 15 provinces and cities taking part, and 43 deals struck.

Three years later, the number of participating businesses rose to 1,251 from 30 provinces and cities. They inked 482 contracts with a total value of over VND22 trillion, and the distribution systems in the city consumed over VND15 trillion worth of goods produced by other localities and supplied goods worth over VND6 trillion for other parts of the country.

ICT Awards 2016 focus on smart city solutions

HCMC's eighth information and communication technology awards ICT Awards 2016 have mostly gone to software and solutions for the mobile platform, especially apps for smart cities, said experts.

The HCMC Department of Information and Communications last Friday organized a ceremony to present the awards at the Quang Trung Software City. Le Quoc Cuong, deputy director of the department, said the winning ICT products and solutions can help the city deal with pressing issues, including traffic congestion and environmental pollution.

Vu Anh Tuan, general secretary of the HCMC Computer Association, said the award winning products have a high ratio of local content thanks to local engineers' research and development efforts. These products are good for HCMC to develop a smart city in the years to come, he added.

Other experts said most entries for the awards could be used for mobile devices and social networks and that some solutions are for both local sale and export.

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