Exports to EU to increase 10% by 2025

As a result of the Vietnam-EU Free Trade Agreement (FTA), experts at a seminar on June 25 in Hanoi said the trade boom shows no signs of abating anytime soon and Vietnam’s exports to the EU could very well increase by 10% over the next ten years.

Speaking at the seminar,Central Institute for Economic Management (CIEM) President Nguyen Dinh Cung underscored the importance of institutional reforms in the country and the international economic integration process.

“Reforms and integration will create a healthy competitive environment and contribute to accelerating economic growth and reduce poverty,” Cung said.

The signing of the Vietnam-EU FTA will open up huge opportunities to Vietnam such as tariff reductions, trade facilitation, investment attraction, expansion of markets, sustainable development and economic restructuring.

Cung emphasized the FTA will also pose challenges including pressures to implement institutional reforms, widely open up the domestic market, improve the business climate and obey strict regulations on labour and environment.

Experts added that these challenges will become greater once Vietnam signs the FTA with the EU and other FTA’s such as the Vietnam-RoK FTA, Trans Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP) come into force.

During the seminar, Oliver Massmann, member of Executive Chamber of Eurocham said Vietnam should fully seize opportunities to penetrate the EU market, especially in such fields as garment and textile, footwear, food processing and seafood.

The Eurocham representative affirmed Vietnam is an important trade partner of the EU as Vietnam’s export turnover to the market has increased significantly over recent years.

He was also optimistic about prospects for foreign investment from European enterprises in Vietnam, especially in the fields of hi-tech, electronics and pharmaceuticals.

Spanish Red Cross helps the disabled integrate into community

A project sponsored by the Spanish Red Cross has produced meaningful results in helping the disabled to integrate into the community socially and economically.

By providing vocational training, the project not only helps the disabled with means of livelihoods but also brings them out of their shell to be part of the community.

Nguyen Thi Van, in Duc Hoa hamlet, Thanh Tan commune, Thanh Liem district, had defects in her legs, as an after-effect caused by Agent Orange/dioxin. Poverty prevented Van from seeking treatment for her legs.

However, through assistance from the project, in 2014 Van got a free-of-charge operation that eventually recovered her walking ability.

In addition, Van was admitted to a class of lace embroidery, where she learnt how to embroider and then found a job earning her over one million VND each month.

But more importantly, Van is gradually getting rid of her sense of inferiority to integrate herself into the community.

Van said being able to walk is a dream come true and she is now no longer the burden of her family.

Besides Van, around 90 disabled people in Ha Nam province have benefited from the project.

The Ha Nam Red Cross has so far organised five classes of vocational training for the disabled, who were taught to use sewing machines, embroider or make conical hats in a period of seven months.

Nguyen Minh Toan, chairman of the Ha Nam Red Cross, the project is of sustainable and humanitarian significance, helping the disabled to get treatments and jobs, stable incomes, which eventually help them stand on their own feet.

Toan said the association would provide vocational training to around 150 disabled people by the end of 2015.

According to the statistics of the Ha Nam Association of Disabled People, the province has nearly 18,000 disabled people. Of which 1,200 are enjoying regular allowances from the State budget.

Besides that, over 1,000 households with disabled people get financial assistance.

Show promotes exports to S. Korea

Many of Viet Nam's typical products like fruits and other agricultural products, seafood, garments, plastic, and handicrafts are on display at Lotte Mart Saigon South in District 7 until Sunday.

"Typical Vietnamese branded products" hopes to create favourable conditions for Vietnamese and South Korean firms to enhance co-operation and to promote consumption among Vietnamese consumers and South Koreans living in Viet Nam.

The event also aims to understand more about South Korean consumers' needs to select suitable products for export to South Korea.

Hong Won Sik, general director of Lotte Mart Viet Nam, said the event would help Vietnamese firms export to South Korea.

The supermarket plans to have the "Typical Vietnamese branded products" programme at more than 100 Lotte Mart supermarkets in South Korea in October, he said.

A conference and business meeting between South Korean and Viet Nam will be organised today at Lotte Legend to enable government agencies, business associations, and businesses to understand more about the opportunities and challenges thrown up by the Viet Nam-Korea Free Trade Agreement.

The event was organised by Cong Thuong newspaper, Lotte Mart Viet Nam, Small and medium Sized Enterprises Development Centre No 2, and the Investment and Trade Promotion Centre of HCM City.

Korea is the country's third largest trading partner and the biggest foreign investor.

Last year Viet Nam's exports to the country were worth US$7.11 billion, a year-on-year increase of 7.7 per cent, while it spent $21.74 billion on imports.

Saigon Co.op opens second store in Binh Duong

Saigon Co.op, owner of the Co.opmart supermarket chain, opened its second outlet in Binh Duong Province's Thu Dau Mot city on June 25, making it the 76th outlet under the Co.opmart chain nationwide.

Covering more than 4,700sq.m at Binh Duong Trade Centre, Co.opmart Binh Duong has an investment of over VND60 billion (US$2.75 million) and sells more than 30,000 items, including fresh food, cosmetics, clothes, electronics and household utensils.

Like other Co.opmart supermarkets, the store provides price-stabilised goods for local residents and neighbouring areas.

To mark its opening, the new supermarket is offering three big promotions, including discounts of up to 50 per cent on hundreds of products, gifts and lucky draw programme with attractive prizes like Honda Air Blade, Samsung TV and Sanyo fridge.

Vingroup to build urban zone in Can Gio

Vingroup will invest in a coastal urban zone spanning more than 800ha in Can Gio District, southeast of HCM City, the municipal People's Committee announced on June 23.

The committee said the group would replace the former investor of the project, known as Can Gio Urban and Tourism JSC, which had failed to construct the zone within the past 15 years.

The committee said, backed by the strength of its experience in real estate development, Vingroup's investment would accelerate the development of the urban project and improve the district's overall development.

The city's chairman Le Hoang Quan called on all the local departments to work together to help the investor realise the urban project as soon as possible.

During the first stage, the group will carry out the construction work over 821ha of land. It will then develop 300ha over the sea. Besides villas, hotels and a tourism resort, Vingroup will also build hospitals and schools and will launch various tours such as visits to the historic relics of the Sac Forest War or a study tour based on environmental issues such as climate change to develop green urban tourism and ensure sustainable development.

Considered the "lungs" of HCM City, Can Gio District is based 50km from the city centre. A mangrove forest with 52 mangrove species, 200 animal species and hundreds of fish, crab and shrimp species covers the 70,000ha zone, which was listed as a biosphere reserve by UNESCO in 2000.

The project was evaluated by the Can Gio Urban and Tourist Joint Stock Company in 2007. It had planned to kick off the construction of the urban project at a cost of VND8.470 trillion (US$388.5 million), but this did not pan out.

HAGL complex opens in Myanmar

The first phase of the HAGL Myanmar Centre, a US$440-million trade centre, hotel and service office complex, was opened in Myanmar on June 23.

The Hoang Anh Gia Lai (HAGL) Group has invested in the project, spread over more than 73,000qu.m, with financial support from the Bank for Investment and Development of Viet Nam (BIDV), Eximbank and Sacombank.

The first phase includes a trade centre, two 27-storey office towers on 161,000sq.m of land and a five-star 23-storey hotel that has 429 apartments.

The second phase of the project will begin this month and will be completed by the second quarter of 2017. During this period, the group will build four 28-storey towers that will have 1,800 apartments and office areas for rent.

Lotus Residences offers townhouses along Ha Long beach

Following the success story of Little Vietnam last year, Syrena Viet Nam on June 24 introduced Van Lien (Lotus Residences) at Halong Marina Urban Area in Quang Ninh Province.

Syrena Viet Nam signed cooperation agreement with G5 Property Trading Floor at the debut of Lotus Residences in Ha Noi yesterday. File Photo

The commercial and resort project at a prime location offers a valuable and rare opportunity for those seeking to own a townhouse along Ha Long beach, Syrena Viet Nam Sales Manager Pham Van Nam stressed.

With 159 four-storey townhouses built in modern and environmentally friendly design and offering a view of sea, Lotus Residences together with Little Vietnam – the project featuring the country's most original architectural styles – is expected to create a bustling commercial, cultural, and tourism destination in Ha Long City.

Lotus Residences, constructed on an estimated investment of VND680 billion ($31.48 million), offers prominent utilities such as a high-end resort area that includes a swimming pool, modern gym, park, and kid playground.

For the first time in Ha Long City, Syrena Viet Nam will introduce a rental pool system at Lotus Residences. A rental pool is a popular management model followed in resort projects, in which parties involved share rental income from a property, as well as expenses associated with its ownership and maintenance.

Syrena Viet Nam has pledged a maximum combined profit of VND600 million (US$27,700) for the first two years of the operation of townhouses in Lotus Residences, joining the rental pool and 65 per cent of rental profits from the third year. In addition, the owners of townhouses can enjoy free accommodation for 60 days every year.

The construction of Lotus Residences started mid-May and is expected to be completed within 14 months. The first 48 units of the project will be offered for sale on June 28 in Ha Long City with promotion programmes by the investor.

G5 Property Trading Floor Alliance has been appointed the official distributor of the Lotus Residences project.

According to Nam, investing in tourism property projects in Ha Long is promising as Ha Long city is becoming more and more appealing for tourists, along with the development of the transport infrastructure system.

Syrena Viet Nam is a subsidiary of BIM Group, which has to its credit a diverse portfolio of residential, commercial, and resort projects in Ha Long, Phu Quoc, and Lao.

Lotus Residences will add to Syrena Viet Nam's high-profile projects, which include Little Vietnam, Crowne Plaza Vientiane, InterContinental Phu Quoc, Halong Marina Plaza, and Coral Bay Townhouses.

Norwegian firm to build Con Dao plant

The People's Committee of Ba Ria – Vung Tau Province has approved a proposal by the Norwegian company Gravi Float AS to build a LNG-fueled thermal power plant on Con Dao Island.

The thermal power plant includes an LNG (liquefied natural gas) warehouse, a wharf for LNG handling and a thermal-power plant with a capacity of 18 MW.

The facilities would be located on 10,000 sq.m of water surface and 13,000 sq.m of land on Hon Troc Island.

Earlier this year, the provincial authorities approved a project to launch hydrofoil services fueled with LNG to carry passengers and cargo between Vung Tau City and Ben Dam Wharf on Con Dao Island.

The Norwegian company LMG Marine will provide the hydrofoil services. Vessels will dock at Da Harbour in Vung Tau City and PTSC Harbour in Ben Dam Wharf on Con Dao Island.

Hydrofoils will be able to carry 350 passengers and 400 tonnes of cargo each with international standard services.

The service, which is expected to take about five hours per trip, will charge VND440,000 (over US$20) per passenger.

Two vessels (Con Dao No 09 and Con Dao No 10) currently provide passenger services between Vung Tau and Con Dao. The trip takes 13 hours, and charges VND200,000 per passenger.

HCMC economy sustains growth momentum

Ho Chi Minh City Gross Domestic Product (GDP) growth rate reached a three year record high of 8.55 percent, hitting VND417,064 billion (US$19.11 million) in the first half this year, reported city Department of Planning and Investment director Thai Van Re on Wednesday.

GDP growth rates were 8.2 percent, 7.9 percent and 8.1 percent in the same period of the last three years, he said at a meeting on socioeconomic conditions presided over by city People’s Committee chairman Le Hoang Quan.

Services grew 9.8 percent, accounting for nearly 60 percent GDP, industrial and construction 6.8 percent holding 39.2 percent and agricultural sector 6 percent contributing 0.9 percent.

Six-month retail goods and services revenues totaled VND323.23 trillion (US$14.81 billion), up 10.9 percent over the same period last year. However, export import turnover reduced 6.3 percent to US$14.59 billion, attributed to crude oil price drop.

HCMC budget revenue reached VND134.73 trillion (US$6.20 billion), increasing 6.18 percent and accounting for 51 percent of 2015 estimates, reported Director of the Department of Finance Dao Thi Lan Huong.

Domestic revenues hit VND75.65 trillion, up 9.46 percent while export import brought VND47 trillion, up 11.54 percent.

SOEs equitisation only reaches 21% in first half of 2015

Only 61 out of 289 State-owned enterprises (SOEs) have been equitised in the first six months of 2015, meeting only 21.1% of the year's plan, the Steering Committee for Innovation and Development of State-owned Enterprises announced at a meeting reviewing the six-month restructuring progress of the SOEs held in Hanoi on June 25.

Of the remaining SOEs, 127 enterprises are in the process of assessing their value and 44 others have recently published their value.

In the first half of 2015, only two SOEs were sold, one was dissolved, one was merged and three were converted into limited liability companies with two members.

In addition to slow equitisation, divestment from non-core businesses was also below expectation. Around VND3.3 trillion out of VND22.3 trillion was divested from five sensitive sectors of the economy - real estate, securities, insurance, banking and finance - equivalent to 15% of the year's plan.

According to the Steering Committee, strong determination and the great efforts of all ministries, sectors and SOEs are required to fulfil the set targets for the second half of this year as there remain 228 SOEs to be equitised, not including a list of an additional 125 SOEs approved by the government to be equitised this year.

In the meantime, the promulgation of policies and mechanism related to SOEs restructuring was very slow. Seven draft Decrees, decisions and projects (accounting for 63% of the year's plan) have yet to be submitted to the government for approval.

Several draft documents stipulating important provisions have not been issued such as the provision on publishing information of one member limited companies wholly held by the State, and the provision on State investment in businesses among others.

SMEs receive 50% financial support for energy saving investment projects

Small and medium-sized enterprises (SMEs) can now access loans from the Bank for Investment and Development of Vietnam (BIDV), the Vietnam Technological and Commercial Joint Stock Bank (Techcombank) and the Saigon Commercial Bank (SCB) whereby they can receive 50% financial support via bank guarantee for energy saving investment projects.

The information is in accordance with an agreement signed in Hanoi on June 25 between the Embassy of Denmark in Vietnam and the three designated banks, which are committed to supporting SMEs with loans for energy efficiency investments under the support of the Danish Green Investment Facility (GIF).

The banks will work with the GIF and SMEs to verify qualified projects to which the Embassy will provide 50% financial support via a bank guarantee.

A special attribute of this mechanism is the energy savings award scheme in which businesses investing in energy saving solutions can earn rebates, from 10% to 30% of their total investment, on the total energy savings.

The financing mechanism came into effect January 2015 and will last until June 2017.

Speaking at the signing ceremony, Danish Ambassador to Vietnam John Nielsen noted that the support with an initial fund of US$6.5 million can facilitate SMEs’ access to capital sources to improve energy efficiency. He also expressed his hope that the model would be successful and repeated in the future in Vietnam, saying that Denmark via the GIF will support 100-130 projects before the end of 2016.

Nguyen Viet Son, Deputy Director of General Energy Directorate under the Ministry of Industry and Trade (MOIT) spoke highly of the Danish support, saying that the projects supported by GIF will not only result in improving the energy efficiency standards in SMEs but also provide valuable lessons for energy efficiency initiatives in larger sized companies, contributing to a greener economy.

Over the last five years, Denmark has provided nearly US$30 million in grant to support for Vietnam to increase sustainable energy usage. GIF is part of the overall support and designed to help SMEs improve their energy efficiency, and to promote clean and sustainable manufacturing in Vietnam.

Vietnam, Cuba strengthen business cooperation

A workshop focusing on providing information on the investment environment and business opportunities in Cuba was held in Hanoi on June 23.

The event, co-organised by the Vietnam Chamber of Commerce and Industry (VCCI) and the Cuban Embassy in Vietnam, featured representatives from 21 foreign trade enterprises under Cuba’s Gecomex Group.

Addressing the workshop, Deputy Chairman of the Vietnam-Latin America Business Council Nguyen Binh Minh appreciated the bilateral cooperation between the two countries in agriculture, biotechnology, education, health and sports.

In 2014, trade turnover between Vietnam and Cuba increased by 45 percent to 207.5 million USD, of which Vietnam exported goods worth 206 million USD to Cuba and imported more than 1 million USDworth of commodities.

Vietnam mainly exported foods, cereals, confectionery, footwear, ceramic products, building materials, coal and chemicals while importing pharmaceuticals and health food.

According to Cuban Ambassador to Vietnam Herminio Lopez Diaz, the two countries share a common ground in policies to attract foreign investment.

Last year, the two governments signed a Bilateral Economic Cooperation Program for the medium term.

The Latin American country is currently opening the Mariel Special Development Zone and is in the process of normalising ties with the US.

These moves are believed to offer opportunities for the two countries to boost cooperation in Cuba’s high potential fields, such as pharmaceuticals, education, health and construction.

According to statistics from the Ministry of Planning and Investment as of December 2014, Cuba has one foreign direct investment project in Vietnam with total registered capital of 6.6 million USD.

Vietnam currently has two oil exploration investment projects in Cuba under the Vietnam Oil and Gas Group.

Implementation of VDPF commitments under review

A conference was held in Hanoi on June 23 to review the implementation of agreements reached at the previous Vietnam Development Partnership Forum ( VDPF ), a policy dialogue forum between the Vietnamese Government and development partners functioning as a replacement for its predecessor, the Consultative Group (CG) Meeting.

Addressing the event, Deputy Minister of Investment and Planning (MPI) Nguyen The Phuong said the MPI has been working with relevant agencies and localities to implement commitments made at the VDPF, with a focus on poverty alleviation, especially among ethnic minority groups.

This includes drawing up, reviewing, revising and issuing new regulations and legal documents; reviewing existing programmes and policies; building new programmes; reducing the dispersal of policies; increasing coordination; integrating development goals; and increasing connections among policies.

Through cooperation between Vietnam and development partners represented by the World Bank, Vietnam has concentrated on important areas such as poverty alleviation, increasing disadvantaged groups’ access to services and the participation of the private sector in providing public services, protecting the environment and increasing the competitiveness of the workforce through vocational training and skill development.

According to the MPI’s report, poverty reduction efforts have helped improve living standards among ethnic minority groups.

The rate of impoverished households nationwide has fallen from 58 percent in 1993 to 5.97 percent in 2014 and the rate among ethnic minority households continues to fall by an average of three to four percent yearly.

In addition, 84.5 percent of rural population have access to safe water and 62 percent of households nationwide have toilets meeting hygienic standards.

The country has 1,456 vocational training centres, up 100 centres from 2014, and training curriculum has shifted to meet market demands and the requirements of economic development.

At the conference, experts proposed providing additional services to ethnic minority groups, integrating this idea into socio-economic plans and mobilising more resources for poverty elimination.

Victoria Kwakwa, the World Bank's Country Director for Vietnam, said development partners recognise Vietnam’s achievements in alleviating poverty.

Vietnam should, however, enact appropriate measures to improve the quality of its workforce as an important factor of economic development in the context of globalisation.

The country, she said, needs to complete legal frameworks and encourage private enterprises to invest in water supply, drainage and waste water treatment projects to increase the effectiveness of social capital and reduce the burden on the state budget.

Institutional reform is a prerequisite to restructuring the economy. Although in recent years, the Vietnamese Government has adjusted policies to befit a market economy, the efforts are only beginning steps.

She hoped that in 2015-2016, institutional reforms would continue and facilitate economic restructuring.

The VDPF was firstly held in 2013, replacing the Consultative Group Meeting of Donors. It reflects a shift in Vietnam’s status from a recipient of official development assistance (ODA) to a development partner of other countries and international organisations.

The VDPF 2014 focused on reforming economic institutions and strengthening self-reliance and competitiveness of the Vietnamese economy.

Vietnam Airlines to serve fresh lychees

The national flagship carrier Vietnam Airlines in collaboration with Bac Giang province will feature fresh lychees for dessert on over 1,400 domestic flights from June 23, announced the Vietnam Aviation Corporation.

The supplied lychees are high-quality and fully comply with hygiene and food safety standards.

The move was designed to meet the demands of domestic and international passengers of Vietnam Airlines as well as contribute to consuming part of the 33 tonnes of fresh lychees produced Luc Ngan district in Bac Giang province.

As scheduled, the lychee desserts will be served until the end of this year’s harvest.

Aquaculture eyes int'l standards

Vietnam's Directorate of Fisheries (D-Fish) and the Aquaculture Stewardship Council (ASC) will work together on promoting responsible aquaculture in the country.

A Memorandum of Understanding to this effect was signed by the two sides at a workshop held on June 22, the first day of the Responsible Business Forum in Hanoi.

Under the MoU, the two sides will co-operate on upgrading aquaculture practices with a step-by-step approach, moving from VietGap standards to ASC certification.

Pham Anh Tuan, deputy head of D-Fish, said that aquaculture was one of four key components of Vietnam's fisheries industry, accounting for 60% of its total output, which is expected to rise to 70% by 2020.

The introduction of national Good Agricultural Practices (VietGAP) by the Agriculture Ministry was aimed at promoting sustainable aquaculture, and the latest initiative would take the process further ahead, Tuan said.

The workshop reviewed differences between VietGAP and ASC standards, and reached agreement on implementing a joint project that will guide VietGAP certified farmers to reach ASC certification.

Tuan said the Vietnamese government had been committed to reducing the negative impacts of fish farming in the country, and building on the mandate that farms must meet VietGap standards, the new project would help them move towards an internationally recognised standard.

This in turn, would provide firms with greater access to international markets and ensure a more responsible aquaculture sector, he added.

In 2014, the Government issued a decree on breeding, processing and exporting catfish, stipulating that farms must acquire VietGAP or equivalent certification by the end of 2015.

ASC Managing Director Chris Ninnes said that through this project, his agency was engaging with farmers not currently able to meet ASC requirements, including smallholders.

They would benefit from greater support in improving their practices, he said, adding that this approach would also enable the ASC to become a more efficient service provider by reducing costs for producers who wish to gain ASC certification.

The ASC has so far granted quality certifications to around 3,000 labels and over 500,000 tonnes of products in the world market.

Workshop participants said aquaculture certification played an important role in promoting and assuring responsible practices that protect the environment and communities.

The new project, led by an external consultant, had the potential to lead to greater collaboration between the two organisations by adopting an area-based management approach, they added.

Lotte to further invest in Hanoi trade centres

Lotte Coralis Vietnam Co. Ltd has finalized formalities to add US$30 million to its investment capital in Hanoi while Lotte Mart has planned to pour an additional US$14 million in the capital city, according to a recent Hanoi’s socio-economic report.

Lotte Group made a debut in Vietnam in 1996 and is expanding investment in different fields.

Lotte Coralis is the manager of Lotte Center Hanoi, the second tallest building in Vietnam. The 65-story tower accommodates above-ground office, residential and hotel spaces and basement parking and mechanical spaces.

With a total registered capital of US$400 million, the project was put into operation in September last year after five years of construction.

Currently, Lotte Mart manages two shopping malls in Hanoi and ten department stores nationwide. It expects to open 60 stores in Vietnam by 2020.

Besides Lotte, Hanoi has accelerated the process of granting licenses to other investors including Metropolis Hanoi with a total investment capital of US$222.4 million and Aeon-Long Bien trade center with an investment capital of US$15 million.

By the end of June, Hanoi has attracted US$501 million in foreign direct investment (FDI) while FDI disbursement is estimated to reach US$460 million, up 2% compared to the same period last year.

Vietnam seeks cooperation opportunities with Czech locality

Vietnam Ambassador to the Czech Republic Truong Manh Son has emphasised that Vietnam wants to enhance cooperation with Liberec province basing on the two sides’ potential.

At a June 22 meeting with Liberec provincial leaders, Son said some Vietnamese localities have a developed tourism industry and travel-related services similar to Liberec.

Some provinces boast of long beaches with white sand, which is suitable for developing the glass and crystal industries. However, until now they have exported it as raw materials only.

Son hoped that the Czech Republic will assist Vietnam in glass and crystal processing for domestic use and export.

Currently, the Czech Republic is following the look-east policy, giving priority to developing ties with Asian countries, including Vietnam. The Czech Ministry of Industry and Trade has listed Vietnam as one of its 12 key trade partners, Son revealed.

It also pledged to help Vietnam deeply penetrate the European market while Vietnam will create a niche for Czech businesses to expand cooperation with ASEAN.

Liberec provincial governor Marin Puta, in turn, asked Vietnam to list potential fields of cooperation and Liberec will work with relevant agencies to draft specific cooperation projects.

Governor Puta praised overseas Vietnamese contribution to Liberec development and believed that second-generation OVs will constitute a bridge for economic and trade development links between the two sides.

On the same day, Ambassador Son discussed with Liberec city’s leaders measures to help OVs better integrate into their residing society.

Vietnam's largest iron ore mine faces funding crisis

State-owned mining group Vinacomin may have to increase its stake in Southeast Asia's biggest iron ore mine, after several investors decided to withdraw from the US$642 million project.

Local media quoted the government as saying on June 21 that if the remaining investors failed to pump more money into the project by July 15, Vinacomin will have no choice but to take care of the funding problem itself.

Since work started on Thach Khe Iron Ore Mine in the central province of Ha Tinh in 2009, the project, estimated to cost over VND14 trillion (US$642.49 million), has been struggling with funding.

The initial plan was that 30% of the projected cost will be contributed by Thach Khe Iron Ore JSC, which is a joint-venture of nine companies including Vinacomin.

However, as of 2013, four of the company's investors, all state-owned companies, pulled out of the project, as part of their plan to restructure their own key operations.

By then the company's capital was over VND144.1 billion (US$6.6 million), of which Vinacomin owned 66.2%.

The company's management board has been ignoring the offer of Japanese-owned construction firm Kobelco to buy a stake since 2013, news website Dau Tu of the Ministry of Planning and Investment reported.

Located about 66 kilometers from Vung Ang Port, Thach Khe Mine was discovered in 1960 with 544 million tonnes of iron ore reserves, or more than half of the national reserves.

Sustainable farming in focus

Over 350 delegates from regional governments, businesses, and NGOs gathered in Ha Noi yesterday to discuss various steps to boost the development of agriculture in Southeast Asia.

The two-day responsible business forum on food and agriculture, themed: ASEAN Beyond 2015: Collaboration For Equitable Growth, was co-organised by the Ministry of Agriculture and Rural Development, Global Initiatives Organization, the Viet Nam Chamber of Commerce and Industry (VCCI), and World Wild Fund.

The forum set a goal for the ASEAN region of feeding a global population of 9 billion by 2050. For this, it will require transformational changes to farming and agricultural systems, which are already under pressure from climate change and water scarcity.

Delegates at the forum agreed that feeding the world will present both challenges and opportunities for the ASEAN region.

Juan Farinati, the Vice President of Monsanto Asia-Pacific, which specialises in supplying seeds for fruits, vegetables, and cotton, said that there was "immense potential for collaboration and innovation to ensure food and nutrition security as well as equitable growth across ASEAN."

"In Viet Nam, better seed, farming practices, and market linkages have helped 8,000 farmers in the Mekong Delta earn approximately US$1 million incremental income in a rice-to-corn rotation partnership in 2013-14."

At the forum, Chairman of ASEAN Business Advisory Council Tan Sri Dr Munir Abdul Majid observed that the major trouble in establishing collaborations in regional agriculture was the fact that they had been working their own way. He noted that climate change, natural disasters, low technology as well as financial support only added to this problem.

Sharing the same opinion, VCCI chairman Vu Tien Loc said local agriculture was facing major threats from urbanisation, pollution, and climate change, making it necessary to establish a sustainable future for better productivity of regional agriculture.

Peter Timmer, Cabot Professor of Development Studies, Harvard University, said the region should have a free trade zone for rice as it was a staple food of all the countries in the region.

Addressing the challenges, delegates agreed that a transformation in farming systems would help bring changes.

Citing Viet Nam's case, Dang Kim Son, Director General of the Institute of Policy and Strategy for Agriculture and Rural Development, applauded the benefits of public-private partnerships (PPP) in the development of the country's agriculture sector.

Son noted that millions of tonnes of farm produce had been cultivated under the PPP model, adding that such partnerships had attracted more investors to local agriculture. At the same time, large local groups had also shifted their interest to invest in this sector.

"If the trend spreads to small and medium enterprises, it will add to the collective strength needed to boost the industry," Son added.

A boost of technology and good farming knowledge would not only bring opportunities for farmers but also benefit consumers, said Siang Hee Tan, Executive Director of CropLife Asia.

According to a report from global agriculture company Syngenta, to increase 20 per cent of average productivity without using more cultivated land, water, and input, it will renovate 10 million hectares of farmland all over the world by 2020. They have trained farmers, helping them improve their cultivated land and do business. Syngenta has been conducting the same programme for corn and coffee crops in Viet Nam in coordination with Tay Nguyen University and the National Agriculture Promotion Centre.

As the seminar closes today, participants will make suggestions to increase the supply of rice, tea, dairy, coffee, maize, and aquaculture products produced through sustainable farming techniques. They will also recommend measures for sustainable land use, equitable opportunity for smallholder farmers, increasing productivity, and improving rural livelihoods.

Law enforcement agencies and enterprises using fake brands need to co-operate to prevent counterfeit commodities from being sold in Viet Nam, anti-counterfeiting official has said.

Chairman of the Viet Nam Association for Anti-Counterfeiting and Trademark Protection (VATAP) Le The Bao said the production of contraband had become more sophisticated, impacting domestic production – and health, in the case of food and drink.

The association said fake commodities were being sold in 30 product categories, including cosmetics, beer, soft drinks, milk, telephones, motorbikes, petrol, confectionery goods, electronics and veterinary medicine. Sai Gon Beer-Alcohol-Beverage Joint Stock Corporation,Sabeco, has strengthened its trademark protection to combat prevalent fake beer sales.

Sabeco's Director Pham Hong Hanh said law enforcement authorities found two cases of fake Sabeco production in HCM City. City police seized 2,200 counterfeit beers at workshops in Binh Tan and Tan Binh districts.

"The company's directorate closely co-ordinates with sale agents, market management officials and economic policemen to discover fake production cases," Hanh said. "Whenever we find fake products, we will co-operate with law enforcement authorities to bring the offenders to justice. We also speak with the media about that."

The Viet Nam General Department of Customs seized products in 80,000 counterfeit, trade fraud and smuggling cases in the first five months of this year. Of these, 8,800 involved fake products. Police prosecuted 40 people involved in 25 cases.

Garment producers have become increasingly concerned with protecting their brands since Viet Nam joined the World Trade Organisation in 2007. There are more than 30 made-in-Viet Nam brands nationwide.

Le Tien Truong, General Director of Viet Nam Textile and Garment Corporation (Vinatex), said Viet Tien Garment Company and Garment 10 Joint-stock Company used advanced technology to make convincing fakes. Garment 10 has been increasing its presence nationwide.

Bui Quang Chuyen, General Director of Viet Nam Engine and Agricultural Machinery Corporation, said the fines for these crimes needed to be raised.

He suggested that the National Office of Intellectual Property of Viet Nam under the Ministry of Science and Technology re-check brand names for each product, avoiding repetition of brand names and confusion.

Fake products are often imported from China – especially cosmetics – in addition to being manufactured locally.

Stable interest rates forecast

Interest rates in the second half of this year will remain stable as inflation has been predicted at 3-3.5 per cent this year, said deputy governor of the State Bank of Viet Nam.

Addressing a press conference in Ha Noi yesterday to review the performance of the banking sector in the first half of the year and prepare for the second half, deputy governor Nguyen Thi Hong said that the interest rates of the whole banking system had remained stable and kept decreasing against the rates last December, although some banks had recently raised their deposit interest rates, causing concerns about a possible rise in lending rates in the coming months.

"Medium- and long-term [more than six months] deposit rates have relatively been stable, though some large-sized banks had recently lifted their short-term [under six months] deposit rates," she said, adding that the raise was unpopular.

Hong attributed the hike to the reason that large-sized banks had previously cut their short-term rates significantly and offered rates lower than that of other banks thanks to their abundant liquidity.

Therefore, their hike now made their rates only equal to that of other banks and not higher than the average rates of the whole banking system.

However, Hong said, the central bank would continue executing various policies to keep the rates stable as targeted earlier this year.

"The central bank will closely watch the market to take timely and suitable measures through open market operations, as well as support liquidity for credit institutions to meet the target," she pointed out.

At the conference, director of the SBV's Monetary and Policy Department Bui Quoc Dung reported that deposit interest rates in the first half of the year reduced by 0.2-0.5 per cent against that of December last year, mainly for terms of more than six months, thereby bringing the medium- and long-term lending interest rates down by 0.2-0.3 per cent to roughly 9-11 per cent per year.

Dung further said that by mid-June, credit rose 5.78 per cent against that of December last year and up 18.98 per cent year-on-year, the highest since 2012. Of this, the total outstanding loans to agricultural and rural areas surged 7.71 per cent, while the increasing rates for the exports of small and medium firms, supporting industries, and high-tech firms were 3.9 per cent, 1.88 per cent, and 24.02 per cent, respectively.

As concerns were raised that high credit rates to the real estate sector during the past months might cause a ‘bubble' in the property market as earlier, Hong said that the rise was not a jump. She reported that the credit to the real estate sector by the end of May rose 10.89 per cent and accounted for 8.3 per cent of the total outstanding loans, compared with 7.96 per cent of the same period last year.

Hong also said that the credit hike for the real estate sector during the past few months was positive as loans were mainly channelled to the construction and completion of works, which contributed to reducing the stockpile of the building materials sector.

However, Hong noted, the central bank would continue monitoring the credit flow to the real estate sector and take timely measures to control any possible risk.

At the conference, the central bank also affirmed that in the second half of this year, it would continue creating policies to maintain the devaluation of the Vietnamese dong against the US dollar by no more than 2 per cent for the whole year as targeted.

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