Construction company wins global industry award

The central city-based Quoc Thang construction company has won the International Star Award for Quality, Gold Category from the Business Initiative Direction Awards, the company's director Pham Quyet Thang told Viet Nam News yesterday.

The award ceremony will be held in Geneva, Switzerland this Sunday, September 30.

The 37th International Star for Quality Convention Geneva 2012 is part of the annual programme of Business Initiative Directions Awards, designed to recognise outstanding companies, organizations and businessmen. This year in Geneva, the Awards will be distributed at a ceremony on September 29th and 30th.

Bond market raises $10.7b in three years

The Vietnamese Government bond market celebrated its third birthday yesterday, having raised a significant portion of the State budget since its inception in September 2009.

The total amount of bonds sold during the period totals VND224.7 trillion (US$10.7 billion), while some auctions have seen winning bids reach up to VND6-7 trillion ($285.7-333.3 million).

Meanwhile, the number of participants has now increased to 84 members.

For these participants, bond yeilds are the most important factor. Prior to 2009, bonds were yielding higher rates than on the money market. However, since the bond market was formed, the yields have been 1-2 per cent per year lower.

"The Government bond market is improving its transparency day by day," a spokesman for the Ha Noi Stock Exchange said. The scale of the market has grown steadily over the years, from VND159.54 trillion ($7.5 billion) in 2009 to VND339.34 trillion ($16.1 billion) as of August this year.

Although the number of listed bonds has declined from 500 to the current amount of 428 codes, the total value increased, forming large-cap bonds and boosting liquidity.

As the operator of the market, the exchange plans to establish a bond index and derivatives, diversifying trading tools and helping reduce market risks.

"Government bonds are a safe and profitable investment in a troubled economy," said Military Bank's head of treasury devision Luu Tien Cuong.

Since late last year, the bank has been adding Government bonds to its portfolios while other investors failed to pay attention.

"If the economy improves with lower inflation in the coming time, our bank will look to further invest in bonds," Cuong said.

He also proposed that the stock exchange issues regular assessments of the activities in the market to ensure it would always be a safe but profitable investment channel.

In August, the Ha Noi Stock Exchange launched the electronic bidding system, connecting itself with bidders and management agencies.

The system contributed to shortening the time from bonds being issued to listed, the exchange said. In addition, it officially brought T-bills into operation, with the hope of developing a yield curve.

VN becomes increasingly attractive to Aussies

Viet Nam now has world class hotels and resorts, beaches and cuisine, in addition to its natural beauty, rich history and traditional culture. The country receives 300,000 Australian tourists yearly, and the number of tourists increases an average of 10% annually.

Australia is a very multicultural society and many Australians are familiar with Vietnamese food and culture. Australians traveling to Viet Nam are looking for a more authentic experience and seek to have a deeper understanding of the country’s culture, food, history and everyday life.

While Thailand is geared more toward mass market tourism, Viet Nam is a destination that is attractive to a more selective class of travelers. Viet Nam is becoming more and more recognized as a safe and favored destination for high end Australian tourists, thanks to direct and convenient flights and improvements in the tourism infrastructure.

The new slogan of Viet Nam tourism, “Timeless charm”, was created with an aim to attract travelers from Australia and elsewhere, who wish to experience the country’s defining characteristics: Thrills, nature, heritage, festival, pristine, enjoyment, scenery and essence.

Mercedes-Benz continues to expand investment

Mercedes-Benz Vietnam will keep expanding investments in the coming time despite a strong drop in the local market, plus disadvantages for local auto manufacturers as the import tax on completely-built-up cars is on the decline.

Michael Behrens, CEO of Mercedes-Benz Vietnam, said the economic downturn has prompted some auto producers to shift their investments to regional countries. However, Mercedes-Benz will not do the same.

Mercedes-Benz will continue to invest US$9 million in the ED coating plant using the modern technology Zicrobond which can prevent corrosion and heat. The plant will be operational in next year’ first quarter.

Vietnam is the second country to use this environmentally-friendly technology after Germany. Mercedes-Benz will continue to apply this technology in other countries.

Behrens said that the firm would invest more in production lines in Vietnam to provide a wide range of car models for customers. At the Vietnam Motorshow which will take place in Hanoi this week, Mercedes will introduce its new GLK models.

The production of new GLK models is also an investment of the German-invested auto manufacturer. It is because when a new car model is launched, the manufacturer will need to spend a huge sum on production and assembling equipment, and it is not easy to recover capital for this investment.

“We see Vietnam full of potentials despite current difficulties and believe that the Government will offer supports to help the economy and industries recover,” said Behrens.

Mercedes-Benz opened four dealers in HCMC, Danang, Haiphong and Can Tho in the past year with a total investment of US$13 million. Currently, Mercedes is having 12 sale and after-sale agents nationwide and will open some more agents in the coming time.

* Suzuki Vietnam last week inaugurated its Suzuki World, a large modern showroom that displays Suzuki automobiles and motorcycles with a modern style in HCMC’s Tan Binh District.

Having a total area of 1,700 square meters at 2 Pho Quang Street, Suzuki World is also the first one of Suzuki Vietnam which displays both motorcycles and automobiles as well as sells and provides repair services.

According to Masami Haga, general director of Suzuki Vietnam, this kind of shop aims to build a new image and provide better services of Suzuki for Vietnamese consumers.

Diverse products and services of Suzuki are available at Suzuki World, including technical solutions and new cars such as Hayabusa, GNZ and New Swift.

The opening of Suzuki World will not affect Suzuki agents in Vietnam but help promote the brand name of Suzuki in the country, according to Haga.

Suzuki Vietnam is developing a new auto factory in Dong Nai Province’s Long Binh Industrial Park with an investment of around US$13 million from Japan’s Suzuki Motor. Scheduled for operation next August, this new factory will produce carry trucks and carry vans.

Vietcombank seeks to accelerate lending

Bank for Foreign Trade of Vietnam, or Vietcombank, has just announced two more preferential lending packages worth a total of up to VND16 trillion in an effort to disburse more loans so as to attain a credit growth of 10% in line with this year’s plan.

The bank’s first package will have a credit line of VND15 trillion offered at an annual lending rate of 9%, targeting customers with credit rating of A or higher rankings and for large clients wanting to spur short-term working capital. For target clients in the prioritized group with lower credit ratings, lending rates will range between 10% and 12% per annum.

Besides, Viecombank also increases the credit line from VND2 trillion to VND3 trillion for the other package targeting individual customers in need of housing, building or fixing homes, or household businesses with a lending rate of 12% a year.

Nguyen Phuoc Thanh, general director of Vietcombank, said his bank obtained credit growth of over 7% year-on-year as of the middle of this month. So he expected his bank’s credits to surge an additional 2.5-3% to achieve the adjusted target of 10% thanks to the on-going lending programs.

Vietcombank from early this year was given a credit growth quota of 17% but the bank has revised down the target to 10% given the current tough market conditions.

Thanh also said his lender is carefully screening loan applications and closely monitoring cash flows of enterprises to avoid borrowers using soft loans to make deposits at other banks for a margin.

Time for city to rush for year’s targets

Now is the time for the city to speed up in order to obtain the targets for this year and map out a plan for next year.

Thai Van Re, director of the HCMC Department of Planning and Investment, said GDP growth in the city had risen from 7.4% in the first quarter to 8.7% in the second quarter and 9.6% in the third quarter, Sai Gon Giai Phong reports.

Overall in the first nine months, the city’s GDP amounted to over VND404.7 trillion, or an increase of 8.7%, which is said to be a reasonable growth rate.

It is forecast that HCMC’s GDP will grow by 9.2%, GDP per capita will reach US$3,700, and the city’s budget revenue will amount to some VND215.9 trillion at the year’s end, equal to 92.42% of the estimate.

Among the 30 targets for 2012, the city will be able to attain 25. The five targets that are unlikely to be achieved are GDP growth (10%), export turnover growth, budget revenue and percentage of pollution-causing production facilities being handled.

HCMC Chairman Le Hoang Quan said there are only three months left until the end of 2012, a year full of challenges. HCMC is determined to make all-out efforts to reach the socio-economic targets for the year, according to the paper.

In the third quarter, HCMC took various measures to solve the financial problems of businesses and stimulate demand through the sales promotion month with over 7,500 companies participating and offering discounts at more than 2,700 retail outlets.

The fourth quarter plays a decisive role in fulfilling the year’s plan. It is the time for preparation for the Lunar New Year holiday, so the city should take the initiative in making plans and closely follow the situation to facilitate the governance work.

In the fourth quarter, the city’s GDP must pick up 10.3% to achieve a whole-year growth of 9.2%. However, HCMC is resorting to all resources, including issuance of VND5 trillion worth of bonds to obtain a GDP growth rate of 9.5%.

Struggling to sell penthouses

Luxury penthouses covering hundreds of square meters each located on the top of high-rise buildings are aimed at wealthy customers, but investors are struggling to sell this kind of apartments in the current tough times.

The duplex apartments of the Gold House (An Tien) project under development in HCMC’s Nha Be District are put up for sale at VND10 million per square meter, or some VND4 billion a unit. Wooden floors and interior decoration items worth VND100 million will be handed over to buyers together with complete houses.

HAGL Land, owner of the project, has sold it to secondary investors, including Saigon Mekong Company. In November last year, secondary investors decided to sell 500 units at some VND14.5 million a square meter, down VND4 million from the previous price.

Meanwhile, in District 12, Dat Land Real Estate Company is seeking permission to split the penthouses of Thai An condo projects into smaller flats. Nguyen Van Duc, deputy director of the company, said this method would make such apartments more affordable for customers.

Similarly, in Hanoi, many secondary investors are offering penthouses at lower prices than the prices they bought at a few years ago.

Previously, one must count on personal relationship to own a penthouse, but now those in need can easily access this kind of apartments, which are on sale at various prices.

For example, the penthouses of the E1 Ciputra project in Tay Ho District, covering 230 square meters each, are put up for sale at VND10 billion per unit, while the owner of the Hapulico project Thanh Xuan District is offering penthouses at around VND31 million a square meter.

The penthouses of the project CT6 Xa La in Ha Dong District are on sale at VND14.5 million per square meter, equivalent to the price of a normal apartment in other projects.

Dao Ngoc Thanh, general director of Viet Hung Investment and Development JSC (Vihajico), said penthouse sale is impacted by the general difficulties of the market. In addition, Vietnamese people still prefer houses attached to land.

JP Morgan Chase: Vietnam inflation bounces back

Vietnam’s consumer price index (CPI) increased 2.2 percent September compared to the previous monthly average rise of 0.2 percent, but it is unlikely to rocket by the year’s end.   

In its report released on September 24, JPMorgan Chase said that the country’s September CPI soared nearly 6.5 percent compared to the same period last year, higher than the forecast of 5.8 percent given by JPMorgan Chase and 5.2 percent predicted by observers.

The report attributed the sharp CPI rise in September to four groups of goods and services, including health, education, transportation and food-foodstuff.

JP Morgan’s Matt L Hildebrandt predicted rising inflation at the end of the year together with the increases in prices of aforementioned goods and services, except medical group.

However, in the context of weak economic growth in the world and Vietnam, JPMorgan Chase said that the CPI would not jump at the end of this year as it did in the last few years.

But, the report also said that it is no easy task to maintain the year-on-year inflation rate of 5 percent.

Inflation will continue towards the threshold of 9 percent during the remaining months of the year, it said.

On this basis, JPMorgan Chase said that the State Bank of Vietnam (SBV) can stop cutting interest rates until the end of this year.

Earlier, it predicted that the central bank would lower interest rates by 100-200 basis points within this year.

According to JPMorgan Chase, low and stable inflation will help Vietnam stabilise its balance of payments, the forex rate of the local currency and foreign currency reserves.

Agro-forestry-seafood exports hit US$20.4 billion

Vietnam earned US$2.3 billion from exporting agro-forestry and fishery products in September, bringing the total revenue of the past nine months to US$20.4 billion, up 10.2 percent year on year.

The Ministry of Agriculture and Rural Development reported on September 25 that agricultural products fetched US$11.1 billion, up 6.2 percent. Most products saw rises in both volume and value, except for rice, rubber and pepper.

During the nine-month period, the country shipped 6.2 million tonnes of rice for US$2.78 billion, up 4.5 percent in volume but down 6.1 percent in value. China has become Vietnam’s largest rice importer since the beginning of this year.

Coffee also contributed US$2.85 billion, up 29.8 percent, to the country’s farm produce exports with a total volume of 1.36 million tonnes, up 36.8 percent. The growth was attributable to the rising demand from Germany and the US, the largest consumers of Vietnam’s coffee.

Tea products maintained stable growth, raking in US$161 million, up 8.8 percent and 8.3 percent, in volume and value, respectively.

Meanwhile, pepper exports earned US$627 million, down 0.9 percent from shipping 91,000 tonnes abroad, a decrease of 16.7 percent. The country’s largest pepper importers are the US, Germany and the United Arab Emirates.

Wood and wood products export reached nearly US$3.4 billion, an increase of 17.2 percent from the same period last year. Almost all Vietnam’s key markets saw a strong growth, including the US, China and Japan, which account for 30.6 percent, 14.4 percent and 17.2 percent of the total revenue, respectively.

Aquatic products brought in an estimated US$4.5 billion, up 3.5 percent from last year’s same period. The US remains the top importer of Vietnam’s seafood, followed by Japan and the Republic of Korea.

HCM City, London team up for financial area project

Ho Chi Minh City wants to learn from London’s experience in building an international financial area in the new town of Thu Thiem.
    
Vice Chairman of the HCM City People’s Commitee Le Minh Tri made the statement at a reception for Alderman David Wootton, Lord Mayor of the City of London, a global financial hub in the UK, on September 25.

Tri expressed his hope that London and UK businesses will provide support in human resources training, mechanism and policymaking, and project management for the city. Additionally, the UK’s experience in carrying out public-private partnership projects will be very useful for HCM City, he said.

At present, UK businesses are investing in 94 projects worth over US$700 million in the city.

Wootton said the UK is ready to provide support for the financial area construction, and will call on the leading UK businesses to share their experience in finance and law to carry out the project.

The two sides also agreed to host a dialogue between UK investors and the municipal authorities in the coming time.

Strengthening capacity of Mekong sub-region policy-makers

Scientists from the Greater Mekong sub-region are gathering in Quang Ninh province for a two-day conference to discuss ways to improve the capacity of policy-makers on green growth in the region.

The September 25-26 event has attracted scientists from Vietnam, Laos, Cambodia, Myanmar, Thailand, the Republic of Korea (RoK) and China on the initiative of scientists from the RoK, Vietnam and other countries in the GMS.

Over the past two decades, the GMS has recorded internationally-recognized development achievements. However, the region, which is rich in natural resources, is now facing urgent issues related to environmental protection and sustainable development.

Addressing the seminar, President of the Vietnam Academy of Social Sciences Nguyen Xuan Thang emphasized that the prosperity of the Greater Mekong- sub region depends heavily on proper management of development issues and close coordination among regional nations to fully tap the natural resources, while protecting the eco-system and environment.

Cae One Kim, senior advisor at the Global Green Growth Institute, stressed that the most difficult thing is to strengthen coordination among GMS nations to focus on green growth. Yet, the lack of capital and technology prevents these nations from achieving the targets. The RoK is committed to supporting sub-regional nations in planning for green growth.

In the reports delivered by scientists at the seminar, policy makers want greater efforts to be made so the Mekong sub-region will be a model for green growth and development in the Asia-Pacific region.

Minister encourages more Israeli investment

Vietnam wants Israeli businesses to increase their investment in the country to fully tap into their potential, says Minister of Planning and Investment Bui Quang Vinh.

Receiving newly-accredited Israeli ambassador Meirav Eiloon in Hanoi on September 24, Vinh noted that bilateral investment cooperation remains modest and both sides need to encourage their business communities to increase contacts and exchanges to facilitate investment.

Vietnam wants Israeli businesses to invest in high-tech agriculture, information technology, telecommunications, construction, industrial manufacturing and services which are Israel’s strengths, said Vinh.

Vietnam and Israel conducted two rounds of talks on an investment promotion and protection, with one in January 2008 and the other in May 2009.

In a protocol to Israel dated March 18, 2011, the Ministry of Planning and Investment proposed hosting the third round of talks in Hanoi. The two sides are preparing for the upcoming talks, said Vinh.   

Israel has invested in 14 projects in Vietnam with a total capitalisation of more than US$30 million, ranking 56th among foreign investors in Vietnam.

Two-way trade has increased considerably in recent times, reaching US$253 million in the first seven months of this year, a year-on-year increase of 52 percent.

Of the total trade value, US$176.7 million was generated from Vietnamese exports, mostly seafood, garments, and footwear.

Ambassador Eiloon said she will try her best during her working term in Hanoi to promote economic, trade and investment cooperation between the two countries.

She also proposed that the two governments create favourable conditions for their businesses to make contact and seek opportunities.

Local firms urged to approach Ukrainian market

A seminar was held in Hanoi on September 25 to discuss ways for Vietnamese exports to penetrate the Ukrainian market.    

The event also provided local businesses with information on the markets in Ukraine.

Le Hoang Oanh, deputy head of the Trade Promotion Agency under the Ministry of Industry and Trade, said that Vietnam has not played an important part in Ukraine’s import-export activities so far, but the demand for Vietnamese commodities in this European country has increased.

In fact, both countries have signed 20 economic and trade cooperation agreements in many fields such as maritime transportation, aviation, culture, education, science, and investment. The list of key imports and exports will increase considerably if their foreign trade is improved.

Many Vietnamese and Ukrainian businesses want to expand their activities abroad but they have encountered a number of issues such as language barriers and lack of information about the cultures, legal systems, consumer demand, market fluctuations, commodities and services.

According to statistics, two-way trade reached nearly US$300 million in 2011, mainly for farm products such as rice, coffee, tea, rubber and seafood, garments and textiles, footwear, handicrafts, wood products, equipment and spare parts, and agricultural chemicals and fertilizers.

At the end of last year, Ukraine investors had 10 valid projects in Vietnam capitalized at around US$23.3 million, ranking 59th among the 92 nations and territories investing in Vietnam. The projects are mostly related to logistics, processing and manufacturing. Vietnam has also invested nearly US$3 million in five projects in Ukraine.

Honda Vietnam recalls 150,000 motorbikes

More than 150,000 Wave RSX 2012 motorbikes manufactured by Honda Vietnam will be recalled to fix incorrectly wired parts.

A company representative said the electric lines to the brake lights were misconnected to the tail lights, and vice versa.  

The error only occured in a specific lot of motorbikes and does not affect their actual function.

The recall for repairs began on September 25 and will run until December 31.

Vietnamese goods favoured in Cambodia

A five-day Vietnamese trade expo has attracted large crowds of Cambodian visitors and buyers since it opened in Phnom Penh on September 21.

The expo has attracted more than 160 Vietnamese enterprises showcasing quality products such as food, plastics, clothing, footwear, mechanical engineering, chemicals and electrical appliances on 300 stands.

A representative of the organizing board said over 10,000 people have visited and shopped at the exposition each day.

The event was jointly held by the Ministries of National Defense of Vietnam and Cambodia.

Preferences for Japanese investors in Vietnam

Vietnam will introduce more preferential policies for Japanese businesses that are investing in the country, said a government official.   

The government of Vietnam is paying due attention to formulating policies to attract foreign investors and develop human resources, Deputy Minister of Planning and Investment Dao Trung Thu told Tadashi Okamura, President of the Japan Chamber of Commerce and Industry in Hanoi on September 25.

Thu said the government has devised a number of plans to support human resources development programmes in rural areas and at industrial and export processing zones. In addition, it has encouraged businesses to invest in building vocational training establishments.

The government is introducing preferential policies to attract small- and medium-sized enterprises (SMEs) to specific groups of products and crafts, Thu said.

At the working session, Do Nhat Hoang, head of the Foreign Investment Agency, told Okamura that the government has assigned the Ministry of Planning and Investment, Ministry of Industry and Trade, and Ministry of Finance, to put forward new policies on taxation, land use and human resource training to support Japanese SMEs in Vietnam.

Vietnam will revise a number of laws, including those on land, investment, and business, to perfect its legal system in favour of investors, said Hoang.

Japanese businesses said they are planning to shift their production bases to Vietnam thanks to the country’s political stability, abundant labour force, and its favourable geographical location for developing logistics and transportation services.

The deputy general director of Nipon Express said his company wants to invest in logistic services in Vietnam to transport its commodities to neighbouring markets such as China and Thailand.

The Ministry of Planning and Investment and the Japan Chamber of Commerce and Industry signed a memorandum of understanding on trade promotion at the end of the working session.

Office rental prices going down in HCM City

There are some signs that office rental prices are following a downward trend.

The warning came from Greg Ohan, director of Office Leasing Department of CBRE Vietnam at a press conference held in HCM City on September 25.

Mr Ohan said by the end of the third quarter, the average leasing price of level A offices had dropped slightly to more than US$30 per square metre per month and many companies planned move from B class to A-class buildings.

CBRE Vietnam said that more than 45,000 square metres of office space in level A and B buildings will be finished and launched on to the market soon.

The average leasing office space is 300 square metre with a rental price hovering between US$15-25 per month, but demand far exceeds supply.

The office space for lease in Bitexco Financial Tower - the highest building in the southern hub, has been amongst fully occupied most of the time.

In the meantime, four-fifths of ICON 68 building’s trade centre has been booked in advance including seven cinemas, restaurants and culinary areas before it officially opens in late November.

Can Vietnam achieve its shrimp export target?

Despite tough international competition, Vietnam’s shrimp exports in the third quarter are expected to reach US$690 million, up 19 percent on the second quarter, but 4 percent down compared to the same period last year.

Vietnam’s shrimp exports hit nearly US$2.4 billion in 2011, up 13.7 percent compared to the previous year. The Vietnam Association of Seafood Exporters and Producers (VASEP) believes that the export volume in 2012 might reach US$2.5 billion, US$100 million higher than in 2011.

They account for 36.9 percent of total seafood exports, valued at US$1.7 billion in the first nine months of 2012.

This is mainly thanks to the growing demand overseas. However, to earn an additional export value of US$800 million and fulfill this year’s set target, export businesses should co-ordinate efforts in the remaining months of the year. Currently, only 35 percent of them are financial strong enough to keep their operations purring along.

Despite having an adequate supply of shrimp for processing and export in the third quarter, they will continue to face tough competition from Thailand, India, Indonesia, and Ecuador. Recently, India has loosened regulations on the import of white-legged shrimps to give a boost to their processing capacity.

According to the Food Agriculture Organisation (FAO)’s forecast, Indonesia’s production of white-legged shrimps for export will soon reach a higher level than before.

Japan, the US and EU are Vietnam’s three major export markets. However, since early this year, Vietnam’s shrimp exports to the EU have fallen due to its slow economic recovery. In France, Italy, Belgium, Holland and other countries, one reason for less consumption of shrimp is a price hike in imported seafood.

Shrimp exports to the EU in the last two months showed a sharp decline. By mid-August, they were estimated at US$185 million, down 23.1 percent from a year earlier.

Shrimp exports to the US and Japanese markets also fared no better due to strict requirements for Ethoxyquin content in shrimp products.

Against this backdrop, some businesses have secured a firm foothold in these demanding markets. Agrimexco CaMau, for instance, earned US$8.6 million from exporting 1,200 tonnes of shrimp. Japan and Europe accounted for 70 percent of the company’s total volume of shrimp exports.

To achieve greater market penetration, Agrimexco Ca Mau has strictly controlled the content of Ethoxyquin in their products for export. There is high hope that export businesses will achieve the set target for US$2.5 billion in shrimp revenue this year.

Tra fish exports go swimmingly
 
Tra fish exports should hit their target for the year, after the Viet Nam Seafood Exporters and Producers (VASEP) predicted a strong final quarter.

September is traditionally the month when tra fish importers in foreign countries increase orders to cater for the end of year demand caused by holidays, said Truong Dinh Hoe, the association's general secretary.

The demand for Vietnamese tra fish is predicted to increase 40-50 per cent by the European Union, 27-30 per cent by the US and 30-40 per cent by the ASEAN countries.

Additionally, the association estimated tra fish exports for the third quarter of this year increased 12 per cent to US$480 million.

So, Viet Nam expects to hit its yearly tra fish export target - $1.8-2 billion - he comfortably said.

However, the export value in the first eight months of this year reduced lightly by 0.5 per cent to $1.15 billion against the same period last year.

The association said in the first eight months of this year, the US accounted for 22 per cent of the country's total tra fish exports, representing a year-on-year increase of 35 per cent to $254.4 million.

Meanwhile, the export value of tra fish to the EU fell sharply by 20.1 per cent to $291.6 million compared with the same period last year due to reduced demand, though the export value of tra fish to the EU was the highest at 26.9 per cent of the total.

The association and local seafood exporters were promoting future tra fish exports to the EU, Hoe said. Additionally, the association would cooperate with ministries and other sectors to organise seminars on advertising Vietnamese tra fish export products at large trade fairs in Europe.

"The adverts will include information about products and also processes from the development of tra fish to processing products and packaging of finished products for exports," he said.

According to the association, Brazil and Arab Saudi enjoyed huge export increases for the first eight months of this year at 226 per cent and 177.5 per cent, respectively, compared to the same period last year, though each market only accounted for 4 per cent of worldwide tra fish exports, he said.

Export of agriculture, forestry and aquaculture products increases

Export turnover of agriculture, forestry and aquaculture products reached US$20.4 billion in the first nine months of this year, an increase of 10.2 per cent compared with the same period last year, said the Ministry of Agriculture and Rural Development yesterday.

It's reported that exports of agricultural articles such as rice, coffee, cashew and cassava continue to be stable with an estimated turnover of $11.1 billion, 6.2 per cent higher than the same time last year.

The ministry said that the rice export market saw many changes this year. China has become Viet Nam's biggest rice importer while other countries such as the Philippines, Indonesia and Malaysia reduced their volume.

In the first nine months of this year, Viet Nam exported 6.2 million tonnes of rice worth $2.78 billion, an increase of 4.5 per cent. The average price of rice reached $452 per tonne, a reduction of 9.2 per cent.

As for coffee, Viet Nam exported 1.36 million tonnes worth $2.85 billion, 36.8 per cent higher than that of the same period last year. Germany and the US are still the leading importers of Vietnamese coffee while Indonesia is an emerging market with its import of coffee nine times higher than last year. It's forecast that the export volume will reduce due to a lack of supply and increase again when the harvest starts at the end of this year.

The export of wood and wood products to countries including the US, China and Japan will likely increase in the next few months due to the increasing demand in the world market.

The US remains the biggest importer of Vietnamese seafood with a 19 per cent share in the market, followed by Japan with 15.1 per cent and South Korea with 7 per cent.

Retail sales value increases by 17%

The total value of retail sales of goods and services in the domestic market during the first nine months of this year reached VND1,710 trillion (US$81.5 billion), a 17 per cent increase compared to the same period last year, according to the General Statistics Office.

The total value of retail sales of this month alone surged more than 1 per cent over the previous month to approach VND193 trillion ($9.2 billion).

Individual traders made the most significant contribution to the retail value - 48.8 per cent - followed by the private economic sector with 35.6 per cent, an increase of 17.1 per cent and 23.1 per cent compared to last year, respectively.

The foreign-invested sector had a modest turnover of nearly VND48 trillion ($2.3 billion) but achieved the biggest increase in rate - 33.8 per cent - while the State economic sector grew at a sluggish rate of only 0.1 per cent.

Director of the Domestic Market Department under the Ministry of Industry and Trade Vo Van Quyen said at a recent press conference that the ministry would focus on boosting both industrial production and local consumption and speeding up inventory clearance for the remainder of this year.

Meanwhile, enterprises would also receive improved access to loans to develop their production and business, he added.

Nation's enterprises urged to improve quality of CEOs

A lack of capable leaders with qualifications is holding back Viet Nam's development, say experts, who claim improvements would play a significant role in helping small-to-medium-sized enterprises (SMEs) survive the global recession.

The survey "Leadership quality of Vietnamese CEOs", due to be released next month to coincide with "Viet Nam Human Resource Day", found human resources and business development to be two of the weakest areas for Vietnamese SMEs, said Le Quan, director of the Viet Nam HR Day's organisation board.

The event and survey aim to evaluate the strengths and weaknesses of local CEOs, their roles in the sustainable development of the firms and the solutions they provide to improve capacity.

Another survey on 63,760 private enterprises in 30 northern provinces and cities, warned that only 54.5 per cent of the CEOs graduated from colleges and universities. The survey, conducted by the Ministry of Planning and Investment's SMEs Development Department together with Japan International Co-operation Agency (JICA), found merely 3.7 per cent of them had gained Masters and PhD degrees.

This survey reported that 42 per cent of firms had a registered capital less than VND1 billion (US$47,619) and only 8.18 per cent of them had registered capital between VND5-10 billion ($238,096 - 476,190).

Former Deputy Prime Minister Vu Khoan said the biggest short-coming of local businesses was a shortage in knowledge for doing business with international partners as well being uniformed of global markets development.

"In the present context of a rising number of suspended and dissolved firms, the poor leadership capacity should be analysed thoroughly so that we can find appropriate solutions," Quan said.

Experts recommended CEOs enhance leadership capacities by upgrading their skills on effective management; strategic management and risk management among others. They should also improve capacity on business analysis, prediction and strategic orientation.

In addition, they also should develop a good accounting system, by applying the national standard accounting system with a longer-term aim towards the world-standard system, experts said.

Tran Phu Son, deputy director general of Ernst and Young Viet Nam and a member of Certified Practising Accountants of Australia (CPA Australia) said businesses should learn and obtain the world-standard certificates or degrees on accounting and auditing because unawareness of these areas can cause risks for enterprises.

Knowledge obtained from international accounting and auditing firms such as CPA Australia or Association of Chartered Certified Accountants (ACCA) had also helped businesses improve their corporate governance capacity rather than only accounting and auditing expertise, he added.

"Good knowledge in this field will help CEOs find out practical problems and loop-holes in their accounting systems as well as in management systems, enabling thorough resolutions," Son said.

The Government should also devise appropriate policies and legal frameworks to create favourable business environments which encourage the application of modern technologies.

HCM City sees 8.7% growth in nine months
 
The city attained a gross domestic product (GDP) of VND404.7 trillion (US$19.4 billion) in the first nine months of 2012, a year-on-year growth of 8.7 per cent, according to the HCM City Department of Planning and Investment.

Speaking at a meeting between the National Assembly's Economics Committee and the city authorities last week, Thai Van Re, director of the Planning and Investment Department, said the city's GDP growth rate rose from 7.4 per cent in Q1, to 8.7 per cent in Q2 and 9.6 per cent in Q3.

Under the current global economic turmoil, these figures showed "reasonable" development of the city's economy, Re said.

The city is expected to achieve a GDP growth rate of 9.2 per cent for the whole year. This includes growth of 10.8 per cent in the services sector; 9.2 per cent in the industrial and construction sectors; and five per cent in the agricultural, forestry and fisheries sector.

Per capita income for the year is estimated at US$3,700.

The city's tax collection is expected to reach almost VND216 trillion (US$10.3 billion) for the year, accounting for 92.4 per cent of the target, and an increase of 5.4 per cent over 2011.

Re said the city is likely to meet 25 of 30 targets set for 2012. The targets that cannot be reached include: GDP growth (10 per cent); export turnover growth; tax collection and the reduction of polluting enterprises.

Speaking at the meeting, Le Hoang Quan, Chairman of HCM City People's Committee, said that in the third quarter of 2012, municipal authorities have taken measures to help businesses overcome difficulties.

These include promotion campaigns, including the ongoing Sales Promotion Month that was joined by over 7,000 businesses selling their goods at over 2,700 shops and outlets.

To reach 9.2 per cent GDP growth for 2012, the city must attain a GDP growth of 10.3 per cent in Q4, he said.

The city would try its best to mobilise resources, including the issuance of bonds worth VND5 trillion, which can help reach a GDP growth rate of 9.5 per cent this year, he said.

Quan said the fuel price hikes in September impacted various economic sectors, forcing the city's CPI (consumer price index) up by 1.21 per cent compared with August 2012, and by 3.38 per cent compared with December 2011.

"The National Assembly should ask the Government to take measures to stabilise the country's macro-economy," said Quan.

"Measures should also be taken to put prices of essential goods under control in order to prevent chaos and create favourable conditions for businesses and consumers in the last months of the year," he added.

Nguyen Van Giau, Chairman of the NA's Economics Committee, said HCM City's achievements would contribute significantly to and play an important role in meeting the country's socio-economic development goals this year.

Transport projects benefit Delta

Top Government officials are advising Cuu Long (Mekong) Delta provinces to be flexible in mobilising capital for developing local transport infrastructure, given that the State budget is stretched.

Transport Ministry officials say the delta has seen impressive transport infrastructure development in recent years because significant investments have been made by the Government.

Many works have been completed and commenced operations including the My Thuan, Can Tho, Ham Luong and Rach Mieu bridges, the Can Tho International Airport, and expanded roads like Trung Luong-Can Tho, HCM City-Trung Luong and Nam Song Hau.

These projects have boosted socio-economic growth in the region, but the Delta's transport system needs further development, the officials say.

In April 2011, the Prime Minister issued Decision No.638/QD-TTg outlining tasks and providing directions on development of transport infrastructure works in the region through 2015, with orientation towards 2020.

Under the decision, 56 centrally-run and 156 provincially-run projects would be developed to ensure that the local transport infrastructure system can handle between 450 and 500 million passengers per year by 2020.

However, a year after that the decision took effect, very few projects have been developed due to the prolonged economic slump, which has forced the Government to tighten public investments in order to reduce inflation and stabilise the macroeconomy.

A representative of the transport ministry, who declined to be named, said capital from the State Budget was only sufficient to be used as corresponding capital for Official Development Assistance (ODA) projects. "This means there are no funds left for other projects," he said.

"Meanwhile, capital raised through Government bonds can meet only 30 per cent of the transport projects' investment needs, so the plan is to inject this into important projects that need to be completed in between 2012 and 2013," he added.

Deputy Finance Minister Nguyen Huu Chi told Tai Chinh Viet Nam newspaper that in the current context of a serious shortage of capital, localities should not rely upon the State Budget and should try to fully tap resources "from the society."

The Finance Ministry has proposed that funds raised through Government bonds and earmarked for 2013 expenditures are used to implement important transport projects that need to be completed this year.

Deputy Prime Minister Vu Van Ninh has also mentioned the need to diversify investment forms for transport infrastructure projects, using the build-transfer (BT), build-operate-transfer (BOT) or the Public-Private-Partnership (PPP) models.

Ninh has asked the Transport Ministry to work with the Southwestern Regional Steering Committee and localities to choose one or two projects and implement them as pilot models.

Priority should be given to projects that connect provinces in the region with each other and promote the Delta's socio-economic development as a whole, he said.