Although Vietnam has quickly completed procedures and paperwork relating to quarantine and other issues to pave the way for more fruit to go abroad, a number of importing countries remain hesitant to open up their markets.

Hoang Trung, deputy director of the Plant Protection Department under the Ministry of Agriculture and Rural Development, said at a recent meeting with trade counselors in Hanoi that Vietnam has managed to ship litchi to Australia, which has high quality requirements for fresh agricultural products.

Vietnam has completed all required procedures for Australia to open its market to other products such as mango and thanh long (dragon fruit). All technical issues for mango have been solved and Vietnam is waiting for the Australian side to come to inspect irradiation facilities before allowing the fruit to enter the country. But Australia has no concrete plan on the matter, Trung said.

Vietnamese dragon fruit, longan and rambutan have made their way to the U.S. market. However, Vietnam finished negotiations with the U.S. on phytosanitary procedures eight years ago but no approval has since been granted to star apple and mango imports from Vietnam.

Trung said the department had taken the initiative in completing all procedures and has raised the issue at meetings at department and ministerial levels. However, the U.S. said they are still considering the issue.

The department has negotiated with the plant quarantine authorities of Taiwan after the market suspended dragon fruit imports from Vietnam eight years ago. Though the Vietnamese side has met all requirements of Taiwan, the fruit has not been allowed to come back to the market.

Many local exporters are waiting for Taiwan’s nod since this is a huge market for dragon fruit. Earlier, Vietnam sold 16,000-20,000 tons of dragon fruit to Taiwan a year, Trung said.

According to a report of the Vietnam Fruit and Vegetable Association (Vinafruit), fruit and vegetable exports amounted to US$1.85 billion last year, up 24% over the same period of 2014. China was still the largest importer of these products.

HSG to export rolled steel sheets to U.S.

Hoa Sen Group (HSG) has secured an order to export 20,000 tons of rolled steel sheets to the U.S., the first such big shipment of Vietnam bound for the American market. Delivery is set for next Monday.

The shipment worth US$10 million will be delivered at SP-SSA International Terminal (SSIT) in the southern province of Ba Ria-Vung Tau.

Le Phuoc Vu, chairman of HSG, said the U.S. market has strict requirements for quality, service, and delivery. The group started selling products to America in 2014 but has stepped up exports since September last year.

Vu said the shipment will mark an important milestone in export activity of HSG in particular and Vietnam’s steel sheet industry in general.

Vu expects that the Trans-Pacific Partnership (TPP) agreement will open up export opportunities for enterprises in 12 Pacific Rim countries, including Vietnam.

In the fiscal year 2014-2015, HSG earned US$314 million from shipping abroad 407,000 tons of products, up 10% in revenue compared to the fiscal year 2013-2014.

HSG’s products have been sold to 60 markets and outbound sales account for 40% of the group’s total revenue.

Landfill closure proposed

The chief inspector of HCMC has asked the city government to weigh a plan to close Landfill No. 3 at Phuoc Hiep waste treatment complex in Cu Chi District to save VND1 trillion (US$44.7 million) for the city’s budget.

If the chairman of HCMC gives the go-ahead, the city’s budget would have to return VND600 billion, which is the amount of money a South Korean firm has spent on the project, and compensate VND400 billion for the investor.

Landfill No. 3 invested by HCMC Urban Environment Co and developed by a consortium of contractors led by South Korean firm KBEC was put into use in 2013, with 2,000 tons of garbage taken a day. As of early last year, 70% of the landfill area had been developed.

However, the city decided early last year that garbage at the landfill should be transferred to the Da Phuoc integrated waste management facility in Binh Chanh District, increasing the daily volume of garbage at this facility by 2,000 tons.

The city also approved a proposal by Vietnam Waste Solutions (VWS) to increase the daily treatment capacity of Da Phuoc complex from 3,000 tons to 10,000 tons.

However, inspectors of HCMC warned that the city’s budget could lose VND1 trillion if the landfill is closed.

According to a document sent to the city government by the Consulate General of South Korea in August last year, when the closure plan for the landfill surfaced, KBEC had completed 70% of the project and the remainder was under construction. The firm had spent big on human resources as well as machinery and equipment imports for the landfill.

Therefore, the investor would face difficulties if the landfill is shut down.

The landfill might lead to an international legal dispute, the document said.

According to the city’s inspectors, the Da Phuoc complex was initially designed to treat 3,000 tons of waste a day but it now gets 5,000 tons a day.

The city’s inspectors proposed the city hold tenders to select public service providers in line with Decree 130/2013/ND-CP in 2013 on production and provision of public products and services in order to prevent monopoly and save money for the State.

Major navigational channel project slow

Work has fallen behind schedule on several packages of a navigational channel upgrade project aimed at enabling bigger vessels to visit ports along the Hau River in the Mekong Delta region, heard a review meeting on Tuesday.

The maritime project management department under the Ministry of Transport said at the meeting that phase one of the project is 90% complete, with all seven construction packages underway.

However, problems have arisen from Package 6B as stone paving work is only 37.4% complete while the dredging of Package 11 is three million cubic meters behind schedule. Slow site clearance is also to blame.

At the meeting, Deputy Minister of Transport Nguyen Nhat requested Tra Vinh Province to quicken site clearance. He told relevant agencies under the Ministry to check delayed components and find solutions.

According to the ministry, the project is of national significance, so relevant agencies and contractors should put it on fast track so that phase one of the channel will be in operation before April 30.

The department said phase two includes building embankments for Quan Chanh Bo Canal, a road linking Provincial Highway 913 and National Highway 53, two boat shelters, a ferry, a management building and an automatic identification system (AIS). These components have not got off the ground.

Do Hong Thai, deputy head of the Vietnam Maritime Administration, said the project includes dredging a 46.5-kilometer-long channel, constructing a 2.4-kilometer-long breakwater, and building 35.94 kilometers of embankment for Quan Chanh Bo and Tat canals, bridges and roads, and Tat Canal ferry.

The VND9.78 trillion (US$437.7 million) project will allow vessels of 10,000-20,000 DWT to call at ports along the Hau River. It will make it possible for the ports to handle 21-22 million tons of general cargo per year and 450,000-500,000 TEUs of containerized cargo per year by 2020.

Chinese venture capital fund invests in Triip.me

Chinese venture capital fund Gobi Partners has invested half a million U.S. dollars in Triip.me, a Vietnamese startup project that provides tourism services online.

Triip.me will spend the money recruiting more staff to support its expansion. The firm posted monthly revenue of about US$1,000 in mid-2015, but has begun to operate profitably as sales have increased by 10 times.

Lam Thi Thuy Ha, chief executive officer of Triip.me, said her company previously had only two people to operate the tourism platform. With the new funding, the firm will be able to carry out its communication and marketing plans to boost sales.

Ha said the partnership with Gobi Partners brings Triip.me knowhow and experience in tourism in addition to capital injection.

Established in 2013, Triip.me helps connect travelers with local people by applying community resources to build tours across the world. The tourism platform uses a model similar to Airbnb’s to allow any person to create tours for sale and link sellers and buyers. Unlike traditional travel agencies, Triip.me tours are designed by local people, who are called Triip Creators.

So far, Triip.me has branched out to 86 markets worldwide. Through websites or mobile apps, it enables everyone to participate in the tours to share their lives and personal stories with tourists.

As of mid-2015, there had been 7,000 Triip.me users and 9,000 Triip Creators, and the successful tours had numbered 5,000. Triip.me gets 10% of the fee of each tour done.

Triip.me started with tours in Vietnam before expanding to other markets in the world. Tours offered on Triip.me are diverse, from rowing a small boat in a floating market of the Mekong Delta with a local family to strolling in a crowded and noisy corner of Hanoi with a tour guide who is a student to explore ancient buildings.

Ha said most Triip Creators have their own jobs and work as tour guides as their part-time job to earn extra incomes.

Tours sold on Triip.me are safe as tour guides are thoroughly checked. The firm requires Triip Creators to provide personal documents such as passports or ID and also check the places suggested by tour guides through an app installed on smartphones.

Triip.me will transfer money to Triip Creators only after tours end and travelers are pleased with what they are promised.

Ha said Triip.me helps people change the way they travel, create jobs for local people and localities preserve local culture.

Binh Dinh urged to focus more on tourism

With beautiful landscapes and historic relics, Binh Dinh Province needs to focus more on attracting investors to tourism and developing it into a key sector to fuel growth.

Many investors, researchers, scientists and corporate leaders shared the same view on tourism development in Binh Dinh at a seminar held by the provincial government in cooperation with the countrymen association of Binh Dinh Province in HCMC over the weekend.

Nguyen Huu Tho, chairman of the Vietnam Tourism Association (VITA), said the province hold great growth potential in tourism, especially sea tourism. If the province spends more on infrastructure for the sector and has more four to five-star hotels, the number of visitors would be higher than last year’s figure of 2.6 million.

International cruise ships with large numbers of passengers on board have called at Cai Mep, Nha Trang, Haiphong, and Danang ports, but have not visited Quy Nhon port in Binh Dinh. Therefore, Tho proposed the province team up with popular travel firms like Saigontourist and strong international partners to attract foreign tourists to Quy Nhon.

The province needs to seek investment in sea tourism in Quy Nhon City, Tho said, adding that tourism development should be considered a key driver for economic growth in the province.

Huong Tran Kieu Dung, general director of FLC Group, said Binh Dinh has many gorgeous natural sites, so the group has invested heavily in the province’s tourism. But she proposed the province promote tourism potential locally and internationally and upgrade Phu Cat airport to enable it handle direct international flights.

Dung asked the provincial government to woo more investors to luxury lodging facilities and encourage local people to develop community-based tourism products to help turn the province into a key tourist destination.

According to the Binh Dinh Department of Planning and Investment, more big enterprises have invested in tourism and hotel projects in the province. For instance, FLC Group has pledged a total of VND5 trillion (US$223.4 million) for its FLC Nhon Ly tourism complex and Eo Gio luxury eco-tourism resort, while Vingroup has registered VND3.5 trillion (US$157.5 million) for Vinpearl Quy Nhon tourism complex.

The province is seeking investors for many major tourism projects, including a 10,027-square-meter, five-star hotel in the urban-commercial-service area west of An Duong Vuong Street and an ecotourism area at Thi Nai Lagoon, Mui Rong-Tan Phung tourism area in Phu My Commune, and Nui Mot Lake eco-tourism zone in An Nhon.

At the seminar, investors, scientists, and corporate leaders called for Binh Dinh to channel more investment to marine economic development, seafood and farm produce processing.

The province was urged to improve the investment environment and assist investors in completing administrative procedures and solving difficulties.

Foreign and domestic enterprises pledged VND5.95 trillion for 33 projects in infrastructure, urban development, manufacturing, trading, service, and aquaculture last year, including six foreign invested projects worth VND947.7 billion (US$42.3 million).

Export firms lack market information

Export and import enterprises said at a dialogue in HCMC on February 22 that they need timely updates about markets, especially at time when some new free trade agreements are going into force.

Nguyen Thi Tuyet Nhung from Phuoc Thanh Bay Map Trading-Production Company, a rice exporter, told the dialogue held by the Ministry of Industry and Trade that the company was having difficulty exporting rice to the U.S.

In particular, rice shipments to the U.S. must be kept in storehouses to be tested by the U.S. before being allowed to enter the market. If banned substances are found, shipments would be returned.

The problem, as Nhung explained, is that the company does not know what banned substances are and what limits are. The U.S. customs authority does not care about the tests the company does in Vietnam like plant quarantine.

To Tue Lang, general director of Binh Thuan Export-Import Company (Thaimex), said seafood exporting to Europe is facing risks concerning payment methods. European customers, particularly Italian ones, prefer documents against payment instead of letter of credit and payments are not made after 15-30 days.

According to Lang, such a payment method is risky and her company may lose hundreds of thousands of dollars if customers cheat. Therefore, commercial counselors should assist enterprises in checking credit information supplied by importers to avoid risks.

Le Vy, general director of Binh Dinh Province-based Phu Tai Company, said the company is in need of news updates about markets.

Meanwhile, according to a representative from Can Tho City, trade counselors should regularly supply information about rejected export shipments to help other enterprises avoid repeating the same mistakes. Besides, enterprises should be provided with information about items and quality requirements of import markets.

At the dialogue, representatives of many overseas trade offices of Vietnam said they are willing to make market information available to enterprises. The trade office in Germany even has a Facebook page on which enterprises can find a lot of useful information and network with others.

Regarding the problem faced by Phuoc Thanh Bay Map, Dao Tran Nhan, Vietnamese minister counselor in the U.S., said the U.S. does not give a clear regulation on residues of crop protection drug in rice. The Ministry of Agriculture and Rural Development has asked the U.S. to make it clear on this issue.

HoREA wants easy credit for property sector continued

The HCMC Real Estate Association (HoREA) has proposed the State Bank of Vietnam delay revising Circular 36 in a way that tightens lending to the real estate sector, saying that credit tightening would cause adverse impact.

HoREA said the property market has just recovered from the crisis over the past two years and that the market would be hard hit if restrictions on property loans are introduced.

In a draft document issued by the State Bank of Vietnam and passed around for comment at financial institutions, the risk index of receivable lending for real estate and securities might be raised from 150%, as stipulated in Circular 36, to 250%. Besides, the maximum ratio of short-term funds used for medium and long-term loans should be adjusted from 60% to 40%.

According to HoREA, the strong rise in bank lending to the property sector in recent times is normal because the market has recovered since late 2013, after years of stagnation. Meanwhile, the banking system is being restructured with loans still at safe levels.

In 2015, investors in the secondary market accounted for around 15% of the city’s property market, mainly in the medium or high-class segments. The ratio was much lower than the real estate bubble in 2007, when the number of secondary investors made up around 70%, HoREA said in a petition sent to the central bank.

The real estate market still depended heavily on capital sources from banks and customers. In fact, much capital mobilized from homebuyers also came from banks. Besides, the city reported around US$5.5 billion in overseas remittance inflows last year, with 23% funneled into the property market.

Meanwhile, the local market is still short of other capital sources such as investment fund, venture fund, real estate trust fund, housing saving fund and stock market. Real estate is a medium and long-term investment vehicle, but few investors are able to secure medium and long-term credit for investment.

In Vietnam, medium and long-term loans carry higher interest rates than those for short-term ones, and this is contrary to other countries. On the other hand, outstanding short-term loans at banks make up a relatively stable ratio, which is manageable, the document said.

HoREA said the adjustment of Circular 36 as proposed by the central bank would place big impact on secondary investors and project developers, causing supply to slump and projects to be left unfinished.

Besides, customers, especially low-income earners in cities, will have fewer opportunities to buy homes. Legal change, if any, would also affect related sectors and employment.

Therefore, HoREA suggested the central bank not revise Circular 36 for now, especially when a real estate bubble is not in sight in 2016.

If the revision is a must, HoREA proposed cutting the maximum ratio of short-term funds used for medium and long-term loans to 50% while maintaining the current risk index of receivable lending for real estate and securities at 150%.

Vicofa: No coffee storage proposed despite price slump

Despite the domestic coffee price fall, the Vietnam Coffee and Cocoa Association (Vicofa) has said it has yet to have a plan to seek Government approval for temporary storage to prop up prices as in previous years.

A Vicofa leader said coffee prices have turned volatile in recent times, so storage would be risky.

He said while coffee was selling at VND41,000-42,000 a kilo in December 2014, some member firms of Vicofa asked farmers to store their beans and made advance payments in the hopes that Vicofa would rush to a storage plan to buoy prices. However, coffee prices have since steadily slipped, spelling trouble for both enterprises and growers.

Vicofa confirmed that it has not made a proposal for temporary coffee storage despite low local prices.

Unprocessed coffee beans were quoted at VND31,200-31,700 a kilo in Central Highlands provinces last week. Some exporters have started to gather beans in anticipation of higher prices in the coming time.

A coffee agent in Di Linh District in the central province of Lam Dong told the Daily that he is purchasing an unlimited volume of beans for an exporter. The VND31,000 per kilo price is low for farmers but good for exporters.

Experts said purchasing coffee in bulk could help prevent coffee prices from further collapsing in the coming time.

Last year, enterprises permitted farmers to keep beans at their storage facilities and made advance payments equivalent to 60-80% of the value of total volume. Then, if farmers agreed to sell, enterprises would pay at the market price at the time of selling.

Optimistic home appliances retailers plan to expand

Many home appliances retailers are planning to resume their stalled projects to open more stores given the positive market outlook this year.

Tran Tan Hoang Hau, marketing director of Thien Hoa Electronics and Furniture Shopping Center, said the store chain would open a new outlet in mid-May as part of a sales network expansion plan for this year. However, he did not reveal an exact number of new stores.

This project was delayed last year. This long-term investment should be calculated carefully, Hau said.

Tran Dinh Luu Phong, marketing director of De Nhat Phan Khang, another major home appliances retailer, said it would have four more stores on September 2, taking to 17 the total number.

Last year, the electronics chain planned three new stores in districts Thu Duc, 7 and Go Vap but the plan was suspended due to market downside risk. The firm has decided to restart its network expansion project, Phong said.

For Phan Khang, HCMC and neighboring provinces like Tay Ninh, Long An and Dong Nai remain Phan Khang’s key target markets.

However, Phong said, the cost concern has forced the firm to scale down store sizes. The forthcoming stores will cover around 1,200 square meters each, smaller than the current stores and just half the size in the initial plan, Phong noted.

According to appliances retailers, the resumption of those expansion plans results from better-than-expected sales at Tet (Lunar New Year holiday), a continued recovery of the real estate market and an improvement of key macroeconomic indicators.

Another appliances retail chain, Dien May Xanh, is pinning hopes on more market growth this year.

Tran Kinh Doanh, general director of Dien May Xanh, said Dien May Xanh still sees HCMC and Hanoi as key markets while 12 other cities and provinces where Dien May Xanh is not yet present are still on its radar.

The company looks to have at least 15 stores in Hanoi and expand the HCMC store network to the city’s outlying areas, Doanh said. It has 15 stores in HCMC at the moment.

Jan trade figures conflict

Vietnam enjoyed a trade surplus of US$760 million in January based on General Department of Customs figures, but the General Statistics Office (GSO) earlier forecast a trade deficit of US$200 million.

Data of the General Department of Customs shows the country shipped abroad US$13.36 billion worth of goods last month, down 1% year-on-year, and spent US$12.6 billion buying foreign products, a drop of 10.7%, thus resulting in a trade surplus of US$760 million.

Vietnam ran a trade deficit of US$394 million in January last year and US$563 million last December.

Data of GSO showed Vietnam’s trade deficit totaled US$200 million in January, accounting for 1.4% of export turnover. The office estimated the import bill amounted to US$14 billion last month, US$1.4 billion higher than the figure reported by the General Department of Customs.

Besides, January export turnover given by the General Statistics Office was US$440 million higher than that of the customs department.  

According to the General Department of Customs, foreign direct investment (FDI) enterprises achieved total goods export revenue of US$9.04 billion in January, down 0.9% year-on-year, while they imported US$7.18 billion worth of products, down 13%. This brought a trade surplus of US$1.86 billion last month.

FDI businesses accounted for 67.6% of Vietnam’s export revenue and 57% of the import bill.

The four major export earners with value of over US$1 billion each were textile-garment with over US$2 billion (up 5.9%), footwear with some US$1.18 billion (up 10.1%), mobile phones with US$2.27 billion (up 1.7%) and computers with US$1.25 billion (up 7%). There were two items with import value of more than US$1 billion each. Computer imports rose by 1.5% while machinery and equipment imports fell by 14.5%.

The country had a trade deficit of US$3.5 billion last year, 2.2% of total export revenue. This marked the first time a trade deficit had returned after three years of trade surplus.

Firms need to be aware of non-tariff barriers

Farm produce will enjoy low or zero tariffs under the free trade agreements (FTA) Vietnam has signed, but technical barriers to trade would be erected by foreign signatories to protect their producers, heard a seminar last week.

At the seminar on how prop up farm exports in Hanoi, Nguyen Thi Hoang Thuy from the Vietnam Trade Office in Australia said Australia is a potential market for Vietnamese goods but it has high food safety and hygiene standards designed to protect domestic agriculture.

Not until April 17, 2015 did litchi become Vietnam’s first fresh farm product to be licensed for import into Australia, followed by mango and dragon fruit. However, according to Thuy, Australia’s product quality standards are a major impediment.

Regarding Vietnam’s litchi shipments to Australia, only one entered the market with ease while the rest faced more screening or were even returned to Vietnam. “We have asked the Plant Protection Department to thoroughly check all shipments before delivery,” Thuy said. “If we are unable to solve the issues of cost and quality, I’m afraid, our exports there would not be sustainable.”

According to the Vietnam Trade Office in Australia, the Vietnamese litchi price is high in Australia, so it cannot compete with similar farm produce already available there. While the irradiation cost in Thailand is US$0.3 per kilogram, it is US$0.5-0.8 in Vietnam. Similarly, the Thai air transport cost is only US$1.6 per kilogram, well below Vietnam’s already discounted fee of US$2.6.

Besides concerns over product price and quality, Thuy said, Australia has a variety of trade barriers to Vietnam’s frozen shrimp, forcing many exporters to shift to exporting processed shrimp.

Vietnam’s shrimp has been able to make its way to other picky markets like the U.S., Japan and the EU, but not Australia. “Vietnamese authorities should work with Australia to solve this issue,” she noted.

Vietnam’s minister counselor in the U.S., Dao Tran Nhan, said farm produce from Vietnam is facing a lot of anti-dumping and anti-subsidy lawsuits and technical barriers to trade.

The U.S. also wants every product to have a barcode that allows customers to check their origin by smartphone.

According to Deputy Minister of Agriculture and Rural Development Tran Thanh Nam, the Ministry of Industry and Trade and commercial counselors and attachés have assisted the agricultural sector to deal with technical issues in export operations over the years. The two ministries have also coordinated closely in negotiating with China over rice sterilization, re-exporting dragon fruit to Taiwan and working with the U.S. over the farm bill that affects tra fish imports from Vietnam.

However, Deputy Minister Nam said Vietnam has yet to fully tap its agricultural potential and make the most of opportunities in the integration process. Farm export revenues are still low, competitiveness limited, export prices unstable and products not diverse, he added.

Agro-forestry-aquaculture exports are forecast to improve this year owing to rising demands and opportunities to enjoy preferential tariffs despite difficult market access and a lack of product diversity.

The U.S. market is huge but full of competition, with many Chinese, Thai and Indonesian products similar to Vietnam’s. Technical and trade barriers have made it tough for Vietnamese enterprises to export goods to the American market.

Meanwhile, the biggest problem faced by Vietnamese exporters in the EU market is non-tariff barriers such as strict quality, safety, hygiene and origin conditions.

Besides, one huge disadvantage faced by Vietnam is the agricultural sector is heavily dependent on the big yet unsustainable Chinese market.

Lower growth forecast for auto market in ‘16

The auto market’s strong growth momentum last year is forecast to continue into this year but traders said auto consumption might not be higher.

A representative of Ford Vietnam said this year the market would not achieve growth as high as the 2015 level of 55% and that sales growth is projected at 10-20% at best. Truong Hai Auto Corporation, the market leader by sales volume, has also forecast growth of 5-10%.

There are many reasons for those dismal forecasts. The market last year recorded strong growth in the truck segment. A recovery of the economy and the Ministry of Transport’s tighter controls on truck loads attributed to impressive sales growth last year.

However, truck sales are seen slowing. There are currently three auto trading and assembly firms listed on the stock market: Hoang Huy Investment Services Joint Stock Company (HHS), TMT Motor Joint Stock Company (TMT) and Truong Long Engineering and Auto Joint Stock Company (HTL).

Truck sales slowed in the final months of the year. Sales of truck trading firms rose to record highs in quarter two last year and come down in the two final quarters. Quarter-four revenue of HTL dropped 18% against the second quarter while HHS and TMT saw sales slipping a staggering 50% in the quarter.

In a 2016 report, BIDV Securities Company said the auto industry as a whole would be in good shape this year though truck consumption could fall considerably.

Auto firms like Ford Vietnam also agreed tight controls on truck loads led to a shortfall of transport capacity last year, which prompted demand for new trucks. However, a sudden pickup in truck demand would not repeat this year.

Imports of completely built-up vehicles (CBUs) have shot up in the past two years but the new method of calculating the special consumption tax (SCT) will send CBU auto prices soaring, so demand in this segment could be affected.

In January 2016, the first month the new SCT calculation began to apply, consumption of CBUs tumbled though some auto firms kept prices unchanged.

According to the Vietnam Automobile Manufacturers Association (VAMA), sales of domestically assembled and CBU autos in January declined against the previous month. CBU consumption declined a steep 45% while the fall of locally assembled autos was milder, at 7.5%.

Data of the General Statistics Office showed around 7,000 CBU cars, most of them luxury models, were imported into Vietnam last month with a total value of some US$175 million, falling by half in volume and US$222 million in value month-on-month. This is unusual as demand for autos traditionally runs high prior to Lunar New Year holiday, or Tet.

Unlike CBU automobiles which may be affected if draft amendments to the SCT law are passed by the National Assembly, locally assembled vehicles, mostly small ones and those of less than nine seats, might grow in sales. The Ministry of Finance has proposed deep tax reductions for such vehicles, possibly from July.

However, the final decision has yet to be made. But the Government’s plan is to lower the SCT on cars that are small, fuel-efficient and environmentally friendly.

Quang Ninh: Over 2,100 households in flood-prone areas to be moved

The northern coastal province of Quang Ninh plans to evacuate 2,138 households from the areas prone to landslides and floods with a total investment of 2 trillion VND (89.6 million USD) from now to 2025.

According to the provincial Department of Construction, 371 areas are at risk of landslides and flooding. Nearby residents must be evacuated.

By 2018, 1,257 households near coalfields and dumps and in the areas most vulnerable to landslides and floods will be moved.

The land fund for the evacuation is estimated at around 53 hectares, while the capital for the work will total 2 trillion VND from state and local budgets, and from relevant enterprises – mainly those operating in the coal sector.

Vice Chairman of the provincial People’s Committee Dang Huy Hau said on February 25 that the evacuation project will provide households with better living conditions.

The evacuation process requires commitments from evacuees and confirmation from local authorities, he added.

HCM City trade union aims to have 90,000 members in 2016

The Ho Chi Minh City Labour Confederation has set to enroll 90,000 new members and establish its chapters in active businesses with over-20-member employment in 2016.

The targets are part of the confederation’s goals set for the 2013-2018 tenure, which include having additional 500,000 members and setting up trade unions in all active businesses which recruit more than 10 workers.

Kieu Ngoc Vu, Vice President of the municipal Labour Confederation, said the confederation standing committee will step up communication work as well as issue more instructions to realise the set goals.

In 2015, the municipal Labour Confederation set up 1,769 chapters with 115,000 members, bringing its total membership to 1,181,000.

Hanoi’s February industrial production index down 27.2 percent

Hanoi’s index of industrial production for February fell by 27.2 percent from the previous month, but increased by 6.1 percent compared with that of the same period last year.

According to the municipal Department of Industry and Trade, in the first two months of 2016, the index was up 8.8 percent year-on-year.

Specifically, the mining industry posted a slight growth of 0.5 percent, while processing, manufacturing and power production rose by 8.8 percent and 5.7 percent, respectively.

From January to February, production of food, clothes, metal and furniture recorded remarkable growth rates of 20.4 percent, 36.2 percent, 33.1 percent and 199.4 percent, respectively, compared with last year.

Economists attributed the decline in industrial production in February to the long holiday during the lunar New Year (Tet) festival.

However, the industry and trade sector predicted that the city’s industrial production will grow steadily in the coming months.

Vietnam Expo 2016 to push stronger trade links

The 26th Vietnam Expo 2016 that aims to enhance regional and international economic connectivity will take place in Hanoi from April 13-16.

This year’s fair will see the participation of more than 450 companies from 20 countries and territories showcasing their products at 520 booths, said the organising board.

Jointly organised by the Ministry of Industry and Trade and the National Trade and Advertising Joint Stock Company (Vinexad) over the last two decades, the annual event serves a bridge for promoting trade ties between Vietnam and other countries.

Sharing achievements reaped in the previous expos, Ambassador of the Republic of Korea (RoK) to Vietnam Jun Dae Joo said this is the 17th time the RoK has participated in the event.

The fairs have brought cooperation opportunities for both Vietnamese and RoK businesses, he noted, adding that Vietnam Expo 2015 attracted 81 RoK firms operating in food, beverage, consumer goods, cosmetic, and medical equipment.

According to Radomill Dolezal, General Director of the trade promotion agency of the Czech Republic, the European country’s presence at the fair would help promote it as a strong and reliable trade partner with high-quality and advanced products.

Through the fair, Czech firms want to establish new trade ties, he affirmed.

This year’s fair is expected to step up stronger connections between Vietnamese firms and their foreign counterparts in trade, investment, and technological transfer, contributing to pushing the country’s export growth and luring more foreign investment.

It will also offer exhibitors a chance to learnt about Vietnam’s investment policies and tools for trade links.

Vietnam sees rise in export of breeding products

Vietnam shipped 39,000 tonnes of frozen meat from suckling pig to China and Hong Kong (China) in 2015, reaching a turnover 103 million USD, nearly doubling those of the previous year.

According to the Ministry of Agriculture and Rural Development’s Department of Livestock, the country exported 31 million salted duck eggs worth 4.9 million USD to Malaysia, Singapore and China, representing a year-on-year increase of 22.6 percent.

Meanwhile, around 13,000 tonnes of unpasteurised fresh milk were sold in foreign markets, mostly in Cambodia, China, and Taiwan (China), raking in 19.6 million USD.

Vietnam also exported about 300,000 tonnes of animal feed during the year with a turnover value of nearly 97.7 million USD to Laos, Cambodia, India, Japan, the Republic of Korea, and Taiwan (China).

Under the Prime Minister’s Decision No. 50/2014/QD-TTg on assisting animal husbandry between 2015 and 2020, Vietnamese farmers will be supported with high-quality cattle sperm to hybridise their livestock. Cutting-edge fodder-producing technology will also be transferred to make the best use of agricultural residues.

The sector aims to raise the proportion of hybrid cattle to 70 percent and increase beef output to 319,000 tonnes (equivalent to nearly 5.6 million heads) by 2020. It will also develop small- and medium-sized livestock areas in suitable grassy regions such as in northern mountainous areas, northern and central coastal areas, and the Central Highlands .

In 2014, Vietnam had about 5.16 million heads of cattle with a beef output of 297,400 tonnes – a 4.2 percent increase from a year earlier. It imported roughly 300 million USD worth of live cattle and 50 million USD worth of frozen beef.

PM highlights commercial counsellors’ role in boosting exports

Commercial counsellors should work as a bridge to help Vietnamese businesses boost exports and promote their products abroad, said Prime Minister Nguyen Tan Dung.

The Government leader spoke at the 2016 Commercial Counsellor Conference that opened in Hanoi on February 26. He urged the counsellors to take every opportunity to remove trade barriers and limit anti-dumping lawsuits.

The counsellors should provide more information about their host countries to Vietnamese businesses, protect their interests and propose expanding their list of export items in each individual market, he said.

Minister of Industry and Trade Vu Huy Hoang said the conference aims to popularise guidelines of the 12 th National Party Congress on increasing foreign trade activities at a time when Vietnam is integrating deeper into the regional and world economies.

The event is expected to help Vietnamese businesses maximise opportunities afforded by free trade agreements to which the Southeast Asian country is a signatory, the official added.

At the same time, the conference helps the Ministry of Industry and Trade (MoIT) tighten its coordination with other ministries, agencies and localities to fulfill the Government’s economic development targets, he said.

The minister suggested the counsellors make proposals to the Government, the Prime Minister, ministries, agencies and localities while working with businesses to seek solutions.

Delegates at the event heard reports on the foreign market, foreign investment in Vietnam and Vietnam ’s overseas investment.

They also debated issues regarding international economic integration, trade promotion, competitiveness, international cooperation in industry, energy and agriculture, as well as measures to spur the country’s exports.

Hailing commercial affairs offices’ contributions to the success of the industry and trade sector, MoIT Deputy Minister Tran Tuan Anh suggested they focus on export promotion.

The offices should target promising markets, attach more importance to the industrial sector and make the best use of opportunities brought about by the integration process, he said.

Within the framework of the conference, the delegates had a working session with representatives from the Ministry of Planning and Investment and the Ministry of Agriculture and Rural Development to discuss how to lure more foreign investments in the farming sector and promote produce exports.

Growth hacking events on way in Hanoi

Two major events regarding growth hacking will be held during the last week of February in Hanoi.

The first consists of two parts: the Launch Event: Growth Hacking 101 - Introduction to the Scientific Approach to Growth, and Workshop: Growth Hacking - How to Get Your First 10,000 Users, by Growth Hacking Vietnam. The Launch Event will be on Thursday February 25 from 6.30pm to 9.30pm at the Toong Coworking Space at 18 To Ngoc Van Street, Tay Ho district, while the Workshop will be on Saturday February 27 from 2pm to 6pm at the Toong Coworking Space at 8 Trang Thi Street, Hoan Kiem district.

Growth Hacking Vietnam is affiliated with Growth Hacking Asia, the leading community and knowledge platform for growth, focused on early stage entrepreneurs.

The event aims to attract startup founders who want to get to cash flow positive or ensure their next round of funding, startup marketers and growth hackers looking to take their skills to the next level, those who want the confidence to lead in marketing by broadening their digital marketing knowledge, consultants, innovation managers, and innovation directors, and businesses coaches looking to stay ahead of the competition.

Speakers will be Ms. Anna Rehermann, Founder of Growth Hacking Asia, and Mr. Nam Le, CEO of VietMoz.

Growth Hacking Vietnam aims to curate the most relevant resources from Vietnam and the world to train both local and expatriate entrepreneurs in the skills necessary to rapidly accelerate growth in sustainable ways. Their goal is to flip the success rate of Vietnamese startups from 1/10 to 9/10.

One of Growth Hacking Vietnam’s key initiatives is to organize a series of monthly workshops targeting young entrepreneurs and startup enthusiasts that will deliver the most essential skills and knowledge as well as empower the community to support and learn from each other.

The second event is “Google Growth Hacking: Content Marketing & Skyrocket Sales” by the Google Business Group Hanoi, to be held on February 28 from 2pm to 6pm at VTC Academy, 14th floor, 18 Tam Trinh Street, Hoang Mai district. Following the success of its first event in January, this second event aims to bring participants a more detailed and in-depth look at Growth Hacking in Sales and Content Marketing.

The content of the event revolves around marketing in general and content marketing in particular. Participants will consist of SMEs, startups, and marketers who apply growth hacking in marketing as well as content marketing. They will have the chance to learn from successful CEOs and Founders as well as academic knowledge from Google in order to attract more users and optimize their branding activities.

This event will see the attendance of many experts in Vietnam’s marketing field, such as Ms. Pham Thi Van Anh, Founder and CEO of the Singaporean startup Atoree.com, Mr. Nguyen Ngoc Long from Google Business Group Hanoi, Mr. Nguyen Thanh Long, Director of Coc Coc’s Marketing Academy, and Mr. Bui Anh Tuan, Co-Founder of BraveBits. The panel discussion will continue to attract the participation of guests, especially those who have been starting up but lacking real experience, as well as enterprises and marketers.

The Google Business Group Hanoi is a branch of Global Google Business Group project, created by Google. It is a community for businesspeople and those who work in business, technology, education, etc, to share knowledge and technology from Google as well as other successful businesses.

The event organizers will constantly update articles, videos, workshops, and event information on their Facebook pages.

Growth hacking can be defined as an unconventional, product-centric, low cost and data-driven approach to online product distribution, user acquisition, and sales funnels and has been the key to success for some of the world’s most successful startups (AirBnB, Dropbox, Spotify, etc.).  

Help needed to expand rice export markets

Deputy Minister of Industry and Trade Tran Tuan Anh has called for Vietnamese trade counselors to help local rice exporters expand markets, instead of relying on traditional markets only.

Anh was speaking at a conference held on Monday to discuss trade and market issues amid Vietnam’s further international integration.

Truong Quang Hoai Nam, vice chairman of Can Tho City, said enterprises in the Mekong Delta city can produce fragrant and high-quality rice but they have found it hard to export their products to South Korea, the U.S., the Middle East, and South America.

According to the Vietnamese trade counselor in Mexico, Mexico is a potential market but rice export firms should pay attention to import regulations, including those on insects.

Nam said that a firm was forced to return 20 containers of rice after only one insect was found in the shipment.

According to the ministry, although Mexico is a potential market, enterprises need to be careful with contract terms to ship rice to the market. They should not allow the buyer to pay only 30% of the total contract value in advance as they may have trouble getting the balance.

Enterprises expressed interest in selling rice to South Korea. According to the Vietnamese trade counselor in South Korea, the Northeast Asian country imports a limited volume of rice a year. Earlier, Korea only imported rice from four nations, excluding Vietnam, but this ASEAN nation now can sell the staple food to that market.

Korea usually organizes international tenders to find rice exporters from January to October with two tenders held every month. Therefore, Vietnamese firms need to prepare documents to participate.

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