Vietjet enters world top 3 fastest growing Facebook airlines brands

The low-cost carrier Vietjet Air has entered the top three fastest growing Facebook airlines brands in the world as rated by analysis website Socialbakers.

Socialbakers tracked and evaluated fanpages of all airlines in the world in terms of interaction effectiveness, growth, number of fans as well as the efficient of promotion spending.

Vietjet Air is the first Vietnamese firm to enter the list in July this year, with a record content strategy efficiency growth of 7.2 times. Vietjet’s fanpage is currently attracting nearly 1 million fans.

The airline, with a fleet of 26 A320 and A321 airplanes, is operating 165 flights per day on 33 air routes across Vietnam and a number of international routes to Singapore, Thailand, the Republic of Korea, Taiwan (China), China and Myanmar.

SeABank wins UK’s dual finance awards for fourth time

The Southeast Asia Joint Stock Commercial Bank (SeABank) has been honoured with “Best Core Banking System Implementation Vietnam 2015” and “Fastest Growing SME Bank Vietnam 2015” awards by the UK-based Global Banking & Finance Review (GBAF).

This is the fourth year in a row the bank has received the titles, earned based on assessments of its business performance and drive to apply innovative technologies in banking operations and services.

Previously, SeABank was deemed the “Best Corporate Services Bank” in Vietnam for 2015 by the UK-based International Finance Magazine (IFM) in July while Le Thu Thuy, Standing Deputy Chairman of the SeABank Board of Directors, was honoured with an IFM title for the “Best Young Female Banking Leader”.

The IFM awards shine a spotlight on individuals and organisations who make a significant difference and add value to raise the bar in the financial industry locally and globally.-

Over 1-trillion-VND MDF factory built in Bac Kan

A 1.07-trillion-VND (47.6 million USD) medium-density fibreboard (MDF) factory was constructed in the northern province of Bac Kan as part of an investment cooperation between the locality and Ho Chi Minh City.

The facility, with an annual capacity of 108,000 cubic metres of MDF, is significant to Bac Kan ’s socio-economic development as it is expected to consume up to 300,000 cubic metres of material wood every year, boosting local reforestation.

The project’s investor Sahabak – an affiliation of the Saigon Industry Corporation, Hanoi Construction Corporation, Bac Kan Forestry Company and Saigon-Indochina Real Estate Joint Stock Company – has also signed an equipment supply contract with Italy’s IMAIL-PAL Group.

The first phase of the project has been completed with the capacity to manufacture 6,000 cubic metres of MDF each year from about 30,000 cubic meters of material wood.

HCM City forges economic ties with Japanese prefecture

Ho Chi Minh City and the Japanese prefecture of Nagasaki are looking to enhance bilateral cooperation in economics, as heard at a meeting between leaders of the two sides on August 27.

Nagasaki Governor Nakamura Houdou said he highly values HCM City’s economic potential and hopes to deepen collaboration with the city based on the two nations’ traditional friendship.

In turn, Chairman of the municipal People’s Committee Le Hoang Quan said the HCM City visit by the Nagasaki Governor will help promote the two localities’ collaboration in economics, culture, education and tourism, reinforcing the thriving relations between Vietnam and Japan.

Nagasaki has had ties with Vietnam since the 17th century. The prefecture’s strength in aquatic products, processed farm produce, handicrafts, mechanical industry and electronic equipment is relevant to the direction of cooperation between the two countries.

Vietnam rubber latex processing plant built in Cambodia

A rubber latex processing plant of the Tan Bien-Kampong Thom Development Company, an affiliate of the Vietnam Rubber Group (VRG), was inaugurated in Cambodia on August 26.

Vietnamese Minister of Agriculture and Rural Development Cao Duc Phat and Cambodian Deputy Prime Minister Yim Chhay Ly were present at the inaugural ceremony.

The Cambodian Deputy PM highly valued the rubber plantation projects of Vietnamese businesses in Cambodia, which help develop the local economy and generate jobs for local residents.

Furthermore, Vietnamese firms including the Tan Bien-Kampong Thon company have been actively involved in the host country’s social welfare activities, infrastructure building and poverty reduction efforts.

Minister Cao Duc Phat reiterated the Vietnamese Government’s consistent policy of fostering and enhancing the friendship and comprehensive cooperation with Cambodia across fields and especially in agriculture.

He thanked the Cambodian Government and people for facilitating Vietnamese investment, including in rubber.

The construction of the Tan Bien-Kampong Thom company’s rubber latex processing plant commenced last year with a designed capacity of 3,000 tonnes per annum.

It is expected to help the company as well as other VRG affiliates in Cambodia process fresh rubber latex and improve business efficiency.

The company has been licensed to grow rubber trees on over 7,000 hectares in Cambodia’s Kampong Thom province with total investment of 43.5 million USD.

Fourteen VRG affiliates are implementing 18 rubber projects in Cambodia on 90,000 of the 130,000 total hectares of granted land.

Consumer confidence falls in August

The ANZ-Roy Morgan Vietnam Consumer Confidence Index slid 4.9 points to 133.7 in August over July, caused by weaker sentiment across all components in a monthly survey.

This month's figure was 1.8 points lower than the level recorded a year ago, according to a report published by ANZ Bank on August 26.

Thirty-one percent (down 3 percentage points) of Vietnamese respondents said their families are "better off" financially than at the same time last year – the lowest recorded for the indicator since last November. Twenty-two percent (up 1 percentage point) claimed they were "worse off".

Fifty-eight percent (down 5 percentage points) said they expected their families to be "better off" financially this time next year, while six percent (up 1 percentage point) predicted "worse off".

Forty-six percent (down 4 percentage points) expected Vietnam to have "good times" financially during the next 12 months, the lowest value ever recorded, while 12 percent (down 1 percentage point) expected the country to have "bad times".

Fifty-five percent (down 9 percentage points) of respondents expected the country to have "good times" economically over the next five years – the lowest recorded since May 2014, compared to seven percent (unchanged) who expected "bad times".

Forty percent (unchanged) said "now is a good time to buy" major household items compared to 14 percent (up 2 percentage points) who thought otherwise.

"Vietnam finds itself in remarkable stead, having bucked the regional slump into trade recession, and is the only economy in Asia to post positive export and import growth," said Glenn Maguire, ANZ chief economist in South Asia, ASEAN and the Pacific.

"This is an environment where consumer confidence – certainly pride – should be flourishing. Instead, consumer confidence fell sharply in August," he said.

"From an economic perspective, we can see triggers for a decline, but not a justification for the magnitude of the decline," he added.

Maguire specified that during August, Vietnamese policymakers had resorted to unexpected policy action such as widening the exchange rate band and moving in for a third devaluation. The surprise devaluation of the Chinese yuan earlier this month may have also triggered concerns about loss of Vietnamese competitiveness.-

US firms optimistic about ASEAN business prospects

American companies are “cautiously optimistic” about business prospects in the Association of Southeast Asian Nations (ASEAN), which groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

The findings were revealed in the annual ASEAN Business Outlook Survey released by the US Chamber of Commerce and the American Chamber of Commerce in Singapore on August 26.

A total of 471 senior executives representing US companies in all 10 ASEAN member nations took part in the survey.

Nearly three-quarters, or 72 percent of respondents, said their trade and investment activities in ASEAN grew in the last two years while 86 percent of them expected their operations in the region to expand in the next five years.

More than half – 53 percent – of senior executives said that ASEAN markets have become more important in their companies' worldwide revenue over the last two years.

However, all these rates were lower than those reported in previous surveys.

According to the survey, Myanmar, Indonesia and Vietnam still remain attractive markets to most American companies.

Additionally, it highlighted barriers for foreign businesses operating in the region, citing low-quality human resources, legal duplication and poor quality of infrastructure as examples.

The survey also stressed the need to promote regional economic integration after the ASEAN Economic Community is formed by the end of this year, noting that Southeast Asian nations should focus on overcoming non-tariff barriers to trade, increasing transparency and promoting effective governance.

Vietnam Airlines adds 95 flights during National Day holiday

Vietnam’s national carrier Vietnam Airlines announced its plan on August 27 to increase the transport capacity to meet the demand of passengers during the National Day (September 2) holiday.

According to the plan, the airline will add 95 one-way flights from August 29 to September 3, equal to 7,800 seats on seven routes, bringing the total added capacity of all routes to 78,000 seats, up 11 percent from normal operations.

Routes with added flights run from Hanoi to Quang Binh, Da Nang, Nha Trang and Phu Quoc; and from HCM City to Da Nang, Nha Trang and Phu Quoc.

On the same day, the airline also announced the resumption of flights to and from Pleiku city in Central Highlands Gia Lai province with one flight each day from HCM City from September 1-14 and three flights from September 15 to October 24.

From Hanoi to Pleiku, the airline will operate the first flight on September 5, four flights each day from September 6-14 and one flight from September 15 to October 24.

On the occasion, Vietnam Airlines also announced attractive promotion prices such as from HCM City to Pleiku for 399,000 VND (18 USD) and from Hanoi to Pleiku 799,000 VND (35.50 USD). These prices are applied to flights from September 1-30.

In related news, Vietjet Air—Vietnam’s largest private airline—also announced its promotion programme in response to the ‘Autumn Online Shopping Day’ on August 28, with 400,000 tickets priced at 0 VND during a golden window from 0pm to 2pm.

Tickets will be priced at 99,000 VND (4.40 USD) for flights for the rest of the afternoon.

Special ticket fares are applicable for all domestic flights from September 1 to December 31 and international flights to Seoul, the Republic of Korea; Yangon, Myanmar; Singapore; Taipei (Taiwan, China); and Bangkok, Thailand from September 1 to March 3,2016.

Tickets are being sold on their website www.vietjetair.com and though smartphones at https://m.vietjetair.com and facebook www.facebook.com/vietjetvietnam and accept payments via Visa/Master/AME/AMEX/JCB/ATM cards issued by Vietnam’s 24 biggest banks with internet banking.

HCM City: Economy grows stably in August

Ho Chi Minh City has sustained steady economic growth in August though hit by a spate of difficulties, the municipal People’s Committee said at a meeting discussing local socio-economic situation on August 27.

Director of the municipal Department of Planning and Investment Thai Van Re reported that the southern economic hub’s industrial production index in the reviewed month expanded by 6.8 percent from a year before, fuelled by increases in processing and manufacturing activities.

The four key industries (engineering mechanics, electronics, chemistry-rubber-plastics, and food processing) posted an estimated annual growth rate of 6.9 percent.

Total retail sales of goods and services in the month rose by 11.1 percent year on year to over 57 trillion VND (2.65 billion USD), contributing to the eight-month sum of more than 437.05 trillion VND (20.3 billion USD), Re said.

Notably, HCM City welcomed 334,350 foreign arrivals, hiking by 8 percent from the same period last year. That made up roughly 2.83 million foreign visitors to the city in the past eight months, a yearly gain of 5 percent.

Another highlight of the local economy was foreign direct investment (FDI) attraction, the People’s Committee said, elaborating that the city licensed 353 new projects worth 2.32 billion USD from the year’s outset to August 20.

Meanwhile, around 466.5 million USD was added to 106 existing projects, raising new and additional FDI amount to 2.8 billion USD, which hiked 2.3 times against the same period last year.

The Department of Planning and Investment noted that the performance of domestic businesses was improving, reflected by a rise in newly-established enterprises. By August 20, the city had licensed the establishment of 20,206 enterprises with a combined registered capital of around 128.6 trillion VND (5.9 billion USD).

The aforementioned outcomes were attributed to the deployment of various measures boosting production and business activities, said Acting Director of the HCM City Institute for Development Studies Tran Anh Tuan, who also underlined the positive effects of the price stablisation and demand stimulation programmes.

At the meeting, Chairman of the People’s Committee Le Hoang Quan asked departments, sectors and localities to work harder to address business hindrances, especially administrative procedures, and attract hi-tech and green investments.

The municipal authorities have also designed concrete solutions to realise the yearly socio-economic targets, which included fostering dialogues with businesses and helping them strengthen competitiveness and innovate technologies.

The city will also step up trade and investment promotion campaigns along with the management over real estate and stock markets and bad debt of the banking systems.

Jetstar Pacific offers 70 percent airfare reduction

Low-budget carrier Jetstar Pacific will offer 70 percent airfare reductions and 70 free return tickets on domestic routes for passengers born in 1945 to celebrate the 70th anniversary of the August Revolution (August 19) and National Day (September 2).

It is part of the promotional campaign “Fall Online Shopping Day”.

Tickets starting from 70,000 VND (3.1 USD) will be available from 11:00 am August 28 to midnight September 2 on www.onlinefriday.vn and www.jetstar.com for flights from Ho Chi Minh City to Phu Quoc Island, Buon Ma Thuot, Nha Trang, Quy Nhon, Da Nang and Tuy Hoa; and from Hanoi to Da Nang, Bangkok (Thailand) and Hong Kong.

Reduction fares on 12 other domestic and international routes will range from 110,000 – 149,000 VND (4.9 – 6.6 USD).

The fares exclude taxes, fees and charges.

The “Fall Online Shopping Day” campaign will be launched by the Vietnam E-Commerce and Information Technology Agency under the Ministry of Industry and Trade and Vietnam E-Commerce Association on August 28.

Challenges facing seafood exporters in Chinese market spotlighted

China is a promising market for Vietnamese seafood exporters despite difficulties and challenges, experts said at a recent conference in Ho Chi Minh City organised by the Vietnam Association of Seafood Exporters and Producers (VASEP).

In the last five years, Vietnamese “tra” fish export to China rose by an average of 21-31 percent each year.

However, Truong Thi Le Khanh, Director of Vinh Hoan Company – one of the tra fish exporters, asserted that China is not yet a stable market.

Despite growth in tra fish export, Vietnamese enterprises have yet to carefully study the market to control price and volume, she said.

Chinese regulations also confuse Vietnamese firms, added Khanh, citing the difficulty in rules on the phosphate proportion of imported tra fish as well as unfair tax policies between official trade and border trade.

According to VASEP, China is the fourth largest consumer of Vietnam’s aquatic products, accounting for 8 percent of Vietnam’s total export volume in 2014.

Particularly, the percentage of shrimp in the total seafood export volume to China rose to 70 percent in 2014 from only 13 percent in 2003. However, in the first six months of this year, the shrimp export turnover dropped 28 percent year on year, pulling Vietnam’s total seafood export to China down by 0.8 percent.

At the same time, tra fish exports to China increased by 50.7 percent year on year to reach 70 million USD.

As of July this year, Vietnam has 623 seafood facilities allowed to ship seafood to China.

Vice Director of the VASEP Centre for Training and Trade Promotion Le Hang said traders’ increased purchases of material seafood, especially shrimp, squid and octopus, to export to China over borders have resulted in shortages of enterprises’ materials for export, affecting contracts with partners.

The situation also caused an imbalance in export structure with higher export volumes of raw material while worsening the image of Vietnamese shrimp due to uncontrolled quality, she said.

Hang added that monetary and customs policies applied by China also affect Vietnamese exporter operations.

Representatives from a number of businesses held that the promotion of Vietnamese seafood in the Chinese market remained modest and noted the lack of a long-term market development strategy.

They proposed the Government should roll out measures to unite seafood exporters to form uniformed safety standards in production and export.

Farming bivalve molluscs for export favourable in Vietnam

Raising bivalve molluscs for export is currently a promising potential for Vietnam as global markets have a growing appetite for the product and the total domestic farming area could be enlarged, many insiders have said.

Data from the Directorate of Fisheries show that the bivalve mollusc farming area in Vietnam is currently over 150,000 hectares, mostly in coastal provinces of the Red River and Mekong Deltas. The area could theoretically be expanded to more than 200,000 hectares.

Meanwhile, bivalve mollusc exports to nine major foreign markets totalled 80 million USD in 2014, a year-on-year increase of 10.7 percent. In the first half of 2015, the shipments reached 40.21 million USD, hiking 4.6 percent from a year earlier.

Nearly 70 percent of the turnover was from exports to Europe while another 17 percent came from shipments to the US and Japan, demonstrating Vietnam’s huge potential to export the products, especially to choosy destinations.

Major market demand for processed clams has increased by 5-25 percent from 2014 while the appetite for scallops, oysters and mussels have also grown, a big opportunity for Vietnamese exporters, said Le Hang – Deputy Director of the Training and Trade Promotion Centre of the Vietnam Association of Seafood Exporters and Producers.

She forecasts overseas shipments of the products will hit 85 million USD this year, up 5 percent from 2014.

However, several challenges remain such as the decrease of bivalve mollusc imports in some European countries like Italy, the UK and Spain (down 15 – 35 percent).

Environmental pollution and unpredictable weather conditions in recent years have also hampered bivalve mollusc farming, according to Nguyen Thi Anh, Director of the Song Tien Trading Co. Ltd based in the Mekong Delta province of Tien Giang.

Anh said provinces with bivalve mollusc growing areas must take concrete steps to protect the marine environment and support farming techniques to generate high-quality products.

Besides close coordination between farmers and managerial agencies, domestic businesses should form strong connectivity with foreign importers, said Ngo The Anh – a specialist from the Directorate of Fisheries. He suggested authorities issue detailed criteria on farming processes, offer technical training and encourage farming area expansion.

US dollar cools down

The price of the US dollar (USD) at commercial banks cooled down on August 27 after tumultuous spikes in the last few days.

On the same day, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) posted its USD dollar buying and selling prices at 22,460-22,520 VND. The rates dropped by 40 and 20 VND, respectively compared to the previous day.

The Bank for the Investment and Development of Vietnam (BIDV) set the buying and selling rates at 22,450-22,510 VND per USD while the rates at Vietnam Export Import Commercial Joint Stock Bank (Emximbank) are transacting at 22,430-22,520 per USD, both lowered by 50 to 25 VND from a day earlier.

According to commercial banks, transactions are rebounding to their normal rates after the State Bank of Vietnam (SBV)’s confirmation that it will not change the exchange rate.

General Director of the Industrial and Commercial Bank of Vietnam (Vietinbank) Le Duc Tho said the foreign exchange market is becoming stable and transactions are returning to a suitable rate within the trading band set by the SBV.

Phan Thanh Son, Head of the Treasury and Financial Markets of the Vietnam Technological and Commercial Joint Stock Bank (Techcombank), acknowledged the bank’s transactions are normalising for customers and on the inter-banking market.

He also praised the exchange rate and policy adjustments made by the SBV, saying that such changes have helped consolidate consumer trust and improve the bank’s overall transactions.

Anti-dumping review request on imported steel welcomed

Local producers can now submit requests to the Vietnam Competition Authority under the Ministry of Industry and Trade (MoIT) for a review of anti-dumping duties on several cold-rolled stainless steel products imported from China, Indonesia, Malaysia and Taiwan (China).

The requests must be handed in from September 5-15.

In early September 2014, the MoIT issued a decision to impose anti-dumping duties on cold-rolled stainless steel plates with thickness of 3.5 mm or less from the four exporters to protect Vietnamese steelmakers.

The highest duty, at 37.29 percent, was imposed on Yuan Long Stainless Steel Corporation of Taiwan. Other Taiwanese steel manufacturers such as Yieh United Steel Corporation were subject to a 13.79 percent tariff.

Among the Chinese steel manufacturers, Fujian Southeast Stainless Steel Company Ltd was assessed a 6.87 percent tariff while Lianzhong Stainless Steel Corporation paid a 4.64 percent tarriff and Fujian Southeast Stainless Steel Company Ltd, 6.58 percent.

PT Jindal Stainless Indonesia and other Indonesian steel manufacturers was imposed a 3.07 percent duty while Bahru Stainless Sdn Bhd and other Malaysian manufacturers were subject to a 10.71 percent tariff.

Long Thanh International Airport investment assigned

The Prime Minister has given a nod to the Airports Corporation of Vietnam (ACV) to invest in Long Thanh International Airport.

The corporation will be responsible for using its investment and development fund to make a feasibility report on the first phase of the project.

The National Assembly approved the Long Thanh International Airport project on the morning of June 25.

The project will be implemented in three phases in Long Thanh district, Dong Nai. The airport, covering a total of 5,000 hectares, will be constructed as a category 4F airport in line with the standard codes of the International Civil Aviation Organisation (ICAO).

It is expected to handle 25 million passengers and 1.2 million tonnes of cargo by 2025 in the first phase which includes the construction of a runway, a terminal together with auxiliary facilities.

The second and third phases will continue building more runways and terminals to bring the total capacity to 100 million passengers and five million tonnes of cargos a year.

Total investment capital for the project is estimated at 336.63 trillion VND (16.03 billion USD). Of these, 114.45 trillion VND (5.45 billion USD) will be spent on the first phase.

Project resources will be sourced from the State budget, the aviation sector’s equitisation capital, official development assistance (ODA), public-private partnership capital and other sources in line with the law.

Government reviews population database plan

Deputy Prime Minister Nguyen Xuan Phuc on August 26 chaired a meeting to review the implementation of the National Database on Population Project, a key component in the Government's Proposal 896.

The project aims to simplify administrative procedures, citizens' personal documents and the population database from 2013-2020.

Speaking at the meeting, a representative from the project steering committee said the population database was behind schedule because the budget had run out.

The project has been approved in principle by the Prime Minister, but its total budget has not yet been decided.

On August 10, another Deputy Prime Minister, Vu Duc Dam, ordered the Ministry of Public Security to co-ordinate closely with the Ministry of Planning and Investment and the Government Office to present a feasibility study on the project to the Prime Minister before August 30.

It is expected that the project feasibility will be approved by the Prime Minister in September and the project will start within a year.

Phuc said the delay in the implementation of the project would delay the implementation of Proposal 896. He asked each member of the project steering committee to work harder to ensure the database on population was completed on time.

"This data base is the foundation for the success or failure of the Proposal 896," Phuc said.

Phuc told the Ministry of Public Security and the Ministry of Justice to co-ordinate closely with each other in implementing the Law on Citizen's ID and Household Registration Book during the development of the National Database on Population.

Sharp rolls out latest technology and products

Sharp Vietnam has unveiled its premium air-purifying products designed to improve the air quality and the efficiency of office workers.

“Targeted at entrepreneurs, the technology is able to improve the air quality in offices and houses. All air purifiers, ion creators and dehumidifiers are regarded as an optimal solution to improve air quality,” said a representative from Sharp Vietnam.

He said Sharp’s solutions for purifying the air have become Vietnamese customers’ preferred choice, especially those products based on its proprietary plasmacluster ion (PCI) technology.

The technology is able to eliminate bacteria, viruses, moulds, allergens, and odour-causing agents for a safe and pure environment for households and office staffs.

PCI has been tested by Vietnam’s National Institute of Hygiene and Epidemiology, which found it killed 96.5 percent of H5N1 viruses in a liquid environment.

Sharp has also rolled out some other premium products like photocopiers, projectors, sensing boards, and multi-functional machines.

Hanoi, Fukuoka forge links in investment, trade, tourism

Vice Chairman of the Hanoi People’s Committee Le Hong Son has called on businesses from Japan’s Fukuoka prefecture to penetrate into the local market in order to fully tap each side’s advantages, reported Ha Noi Moi newspaper.

Speaking at a conference in Fukuoka on August 26, which drew 65 Japanese and Vietnamese enterprises, Son pledged the best possible conditions for the two localities’ businesses to cooperate in investment, trade and tourism.

The capital city aims to attract foreign investments towards up-to-date technologies and technology transfer in association with sustainable development, he said.

Hanoi is striving to boost two-way trade with Fukuoka and rolling out strategies to lure more tourists from the Japanese prefecture, the official noted.

At the conference, the Japanese businesses were briefed on changes in Vietnam’s 2014 Investment and Business Laws as well as the city’s investment environment, orientations and policies.

After the Q&A session, the two sides signed a memorandum of understanding.

Hanoi’s four enterprises also introduced their strengths and cooperation plans with partners from Fukuoka.

Soc Son suburban district to become industrial centre

The Soc Son district in the outskirts of Hanoi is set to become an industrial hub under the city’s industrial development plan through 2020 released on August 26.

Accordingly, the district will house the Soc Son and Ni-Gia centralised industrial parks, the Phu Lo small- and medium-sized industrial park and the Minh Tri-Tan Dan clean industrial park.

In order to realise the plan, the locality must encourage industrial zones and clusters with functional facilities such as workers’ accommodations, parks, showrooms and warehouses.

The 1/10,000 plan orients Soc Son towards high-tech industrial zones and clusters with cutting-edge agricultural and forestry product processing technologies.

The plan advocates environmental production and works to constrain waste affecting soil, water and air as much as possible.

Craft clusters will be also set up in the area in order to promote traditional crafts such as carpentry and rattan-bamboo weaving.

The same day, the municipal Department of Planning and Architecture announced master plans for the Soc Son satellite urban area and Ni town by 2030, both at the ratio of 1/5,000.

Vuong Van But, Chairman of the Soc Son People’s Committee, said such plans target trade, service, tourism industry and ecological agriculture, thus creating favourable conditions for the locality to attract investment and spur local economy.

HCM City approves major projects investments

The Ho Chi Minh City People’s Council approved a decision on August 26 to invest in 280 planned projects worth over 62.54 trillion VND (2.8 billion USD) using the municipal budget.

The city also gave the green light to 95 other unplanned budget-funded projects valued at 13 trillion VND (590 million USD).

Additionally, the council passed four projects using the State budget with total investment of over 2.71 billion VND (120,400 USD) as well as five others funded by Government bonds worth over 2.68 trillion VND (119 million USD).

All the projects focus on building infrastructure to serve local residents and the city’s socio-economic development.

According to the council’s Chairwoman Nguyen Thi Quyet Tam, it is necessary for local departments to avoid the sluggish allocation of capital due to lengthy administrative procedures while continuing to build investment criteria for under-30 million VND projects to suit the city’s realities.

The council also approved the clearance of 1,602 hectares of land for 298 projects in 2015, including the metro line No.2, the Ben Thanh central station and the city’s anti-flooding projects.

Thai garment, textile businesses eye Vietnamese market

A delegation of more than 400 Thai businesses operating in garment-textiles and footwear are visiting Vietnam to scope out the domestic market.

While in Vietnam, the businesses engaged in an exchange with hundreds of local firms in Ho Chi Minh City on August 26 to boost cooperation in the field.

Malinee Harnboonsong, Commercial Councillor and Director of the Trade Centre under the Thai Consulate General in HCM City, said the Thai businesses hope to grasp local consumption demands and explore the market’s potential.

According to her, Thailand’s trade and investment promotion agencies have helped their businesses study the Vietnamese market, funded their participation in fairs and exhibitions, and encouraged exchanges between the two countries’ enterprises.

Many Thai firms said they have seen Vietnam’s potential in trade and investment and expect to cooperate with local partners to help spur the Southeast Asian country’s garment-textile and footwear sectors.

During their trip, the Thai businesses will visit several garment-textile and footwear plants in southern localities such as HCM City and Binh Duong and Dong Nai provinces.

Nguyen The Hung, Deputy Director of the Vietnam Chamber of Commerce and Industry’s HCM City branch, said Thai products are popular in Vietnam and more Vietnamese goods are present in the Thai market.

He urged the two countries’ businesses to step up their cooperation and fully tap their potential and advantages, especially in the garment-textile and footwear sectors, as Vietnam, Thailand and other ASEAN countries are doubling their efforts in preparation for the formation of the ASEAN Community with its dual opportunities and challenges.

Trade turnover between Vietnam and Thailand reached 10.6 billion USD in 2014, a year-on-year rise of 12.5 percent. In the first half of this year, the figure stood at about 5.2 billion USD, up 8 percent against the same time last year.

The two countries are striving to raise bilateral trade value to 20 billion USD in 2020.

Over 6,200 stalls to serve HCM City’s promotion campaign

More than 6,200 stalls are being set up across Ho Chi Minh City in preparation for a promotion campaign from September 1 to December 31, the municipal Department of Industry and Trade announced on August 26.

According to the department, the programme has attracted 2,000 enterprises and 4,000 business households which will offer their goods at discount prices worth a total estimated 2.2 trillion ND (96.8 million USD).

Do Hung Anh Tuan, Deputy Head of the department’s export, import and trade promotion office, said this year’s event, the 10 th of its kind, focuses on consumption goods, electronics, fashion, food, cosmetics, pharmaceutical products, banking, telecommunications, interior decorations, tourism and hotels.

In an effort to bring goods to those with low income, the department has partnered with the HCM City Export Processing Zone Authority and localities to organise over 150 mobile sales that provide essential products at reasonable prices.

As part of the campaign, a string of fairs and market days will be also held in districts across the city.

The programme has received enthusiastic responses from hundreds of traders in traditional markets such as Ben Thanh, Binh Tay, An Dong, Hoang Hoa Tham, Vuon Chuoi and Hoa Hung.

The department’s Deputy Director Nguyen Phuong Dong said with renewed and diverse events, the programme has become a pragmatic trade promotion activity, contributing to accelerating the “Vietnamese people prioritise Vietnamese goods” drive.

With discounts ranging from 5 to 49 percent and good quality products, the promotion programme has been an anticipated event for local consumers, he added.

Agro-fishery-forestry export falls in first 8 months

Agro, fishery and forestry export turnover in the first 8 months of this year decreased by 4.8 percent over the same period last year to 19.31 billion USD, reported the Ministry of Agriculture and Rural Development on August 26.

The turnover was estimated at 2.38 billion USD in August alone.

In the 8-month, seafood export fetched 4.13 billion USD, down 17.5 percent year-on-year, while principal forestry products saw an 8.2 percent increase to 4.52 billion USD.

Among agricultural products, rice, rubber and coffee experienced the strongest falls in export revenue.

Rice export brought home 1.76 billion USD with 4.09 million tonnes, down 15 percent in value and 8.6 percent in volume.

China remained the largest market for Vietnamese rice, accounting for 35 percent of the total export volume. Notably, Malaysia emerged as the third largest market with a 74 percent growth.

Coffee shipments reached 874,000 tonnes for an export value of 1.79 billion USD, down 33 percent in both value and volume.

Rubber exports stood at 632,000 tonnes for nearly 922 million USD, marking an 11 percent growth in volume but a 10 percent decrease in value over the same period last year.

Pepper and cashew nuts were the spotlights of farm produce exports due to their rising values by 28 percent and 13 percent, respectively.

Tourism sees positive signals by year’s end

A total of 664,985 foreigners traveled to Vietnam in August, rising 12 percent from July and 7.5 percent year on year.

According to the Vietnam National Administration of Tourism (VNAT) , international arrivals are expected to grow in the following months as peak season approaches. High-budget tourists, particularly from the US and Canada, consider Vietnam an attractive autumn destination.

The sector is launching a range of promotion packages targeting visitors from Belarus and five Western European countries.

Accordingly, citizens of the UK, France, Germany, Spain, Italy and Belarus, all of whom recently gained a unilateral visa exemption for stays lasting no longer than 15 days, now have access to a range of good quality tourism services with prices reduced up to 30 percent. The services include inter-country tours such as Indochina tours across Vietnam, Laos and Cambodia.

Within the first 8 months of 2015, Vietnam welcomed five million international arrivals, representing a year-on-year 7.5 percent reduction, while domestic tourists reached 45.8 million.

Despite the quantity reduction, the sector posted a revenue exceeding 235.58 trillion VND (10.5 billion USD), up 2.7 percent from 2014.

Foreign visitors to Vietnam from 12 nations, including the Republic of Korea, Singapore and Finland, were on the rise while the rest experienced a downward spiral during the period.

Electricity firms urged to enhance competitive market

The Electricity of Vietnam (EVN), Vietnam National Oil and Gas Group (PetroVietnam) and Vietnam National Coal-Mineral Industries Corporation (TKV) should work harder towards a competitive power generation market, laying the foundation for electricity wholesale trade, said Deputy Minister of Industry and Trade Hoang Quoc Vuong.

He made the suggestion at a conference to review the three year operation of the competitive power generation market and discuss the plan to establish a competitive wholesale electricity market held by the Electricity Regulatory Authority of Vietnam (ERAV) under the Ministry of Industry and Trade (MoIT) in Hanoi on August 26.

The official requested the three corporations to prepare for power plants to join the competitive market where the EVN no longer remains the single buyer and prices are determined by the market.

The EVN was appointed to prepare a detailed plan for the immediate participation of multi-purpose hydropower and build-operate-transfer (BOT) plants in the market and submit it to the MoIT as soon as possible.

It was also asked to improve the transparency of its market reports for the benefit of stakeholders and consumers.

Meanwhile, the ERAV is responsible for collecting feedback from stakeholders for the prompt resolution of challenges remaining in the new competitive market.

According to Head of the ERAV Nguyen Anh Tuan, 59 out of 109 power plants with a combined capacity of approximately 14,800 megawatts, or 42 percent of the national capacity, have joined the competitive electricity generation market through direct public offerings.

Yet many challenges remain, including the lack of experience and capable human resources to effectively operate the market and several payment issues.

The ERAV pledged to provide extra guidance to assist electricity plants in joining the market and overcoming difficulties.

Vietnam plans to have a competitive retail electricity market by 2030.

Vinh Phuc spends big on cow farms in Tam Dao

The People’s Committee of the northern province of Vinh Phuc has approved over 366 billion VND (16.1 million USD) to develop cow farming, a local official said.

The project will be carried out in Tam Dao district from 2015-2019, said Ngo Huu Mai, Vice Chairman of the district’s People’s Committee.

The amount is intended to be sourced from the provincial and district budgets as well as from farmers involved in the project.

It will cover the costs of 200 new cows and five breeding bulls to be provided for targeted households in the district within this year.

Milk cows will be raised in the communes along the Pho Day River such as Bo Ly, Dao Tru, Yen Duong and Ho Son while beef cattle will be raised in other eight communes of the district.

The district will offer preferential loans as well as a number of incentives for households joining the project.

Technical assistance will be provided for farmers to ensure effective raising, caring and breeding of the cows.

By 2019, it is expected that the district will have a herd of 2,829 cows, with nearly 1,000 cows producing milk continuously and more than 14,000 others producing meat.

Endowed with low hills and rivers, Tam Dao has favourable natural conditions for developing cow farms, Mai said.

The project is expected to fulfil provincial demand for beef while improving the living condition of local farmers.-

HCM City to transform industrial parks with hi-tech industries

HCM City, Vietnam’s southern economic hub, is making efforts to transform its processing and industrial zones from traditional labour-intensive structure to high-tech key industries.

After 24 years of developing export processing industrial zones, the city has made considerable achievements.

Since the establishment of the Tan Thuan export processing zone in 1991, a substantial amount of marsh areas have been transformed into a vibrant economic area with tens of thousands of workers within hundreds of factories.

Tan Thuan laid the foundation for hundreds of export processing and industrial zones across the country, which generate jobs, boost export-import activities, improve infrastructure and transfer technology.

According to Pham Xuan Trung, Chairman of the Board of Directors of Tan Thuan Limited Company – a joint venture between the Tan Thuan Industrial Promotion Company Limited (IPC) and Central Trading and Development (CT&D), of Taiwan (Chinese), as of June, 2015, the Tan Thuan export processing zone had attracted 184 enterprises from 19 countries and territories with 1.5 billion USD in investment capital and generated an export value of 3.9 billion USD.

The zone is planning to develop an e-office park employing around 4,000 information technology workers.

The e-office park has drawn major corporations such as Renesas, Danieli, Marvell, Applied Micro and Aricent.

Besides pioneering the Tan Thuan Export Processing Zone, the city now has 11 other export processing and industrial parks with a combined occupancy rate of 91 percent, making impressive contributions to the city’s gross domestic product.

According to the management board of the Ho Chi Minh City Export Processing and Industrial Zones Authority (Hepza), the zones have 1,307 valid projects with total capital of 8.4 billion USD.

Of the figure, 523 are foreign projects with over 5 billion USD in capital and 3.4 billion USD in domestic capital.

Tan Thuan, Linh Trung and Linh Xuan zones account for the largest proportion of both investment capital and export value, which reached 22.34 billion USD in 2014.

Nguyen Chon Trung, former head of Hepza, said export processing and industrial zones have drawn major companies with modern technologies that promote the innovation of technology across fields.

In order to continually transform existing industrial facilities, Hepza has been focusing on attracting projects with substantial capital and advanced technology in four key industries: food processing, chemical-rubber, mechanics, and electronics-information technology.

From 2011-2014, the four key industries attracted 2.28 billion USD, making up 70.3 percent of the total investment capital flowing into industrial zones.

According to overall plan approved by the Prime Minister, HCM City will have 24 processing and industrial zones with a combined area of 6,100 hectares and focus on drawing projects in the high-tech sector, especially in mechanics, electric-electronics and chemicals.

The Hepza is also finalising a project to build support industrial zones within the Hiep Phuoc Industrial Park in Nha Be district and the Le Minh Xuan 3 Industrial Park in Binh Chanh district.

Besides that, Hepza is developing a pilot model of high-rise workshops for 2015-2020 at the Dong Nam, Hiep Phuoc, Linh Trung and Tan Thuan export processing and industrial zones to attract small- and medium- enterprises that use advanced technology and modern equipment.

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