Dairies battle for market share
 
Dairy producers are battling to maintain market share as new competitors enter the market. The domestic market is estimated to be worth about US$3 billion, and is already crowded with domestic and foreign players such as Vinamilk, FrieslandCampina, Ba Vi, Moc Chau, Da Lat and Long Thanh.

But TH True Milk has made a big splash on the market, already seeing earnings of VND2 trillion ($US98 million) and accounting for 33 per cent of the fresh milk market. This was expected to rise to 50 per cent by 2017, with overall earnings to climb to VND23 trillion ($1.1 billion), said a representative of TH True Milk.

FrieslandCampina Viet Nam holds 30 per cent of the local market, putting it in second place overall after Vinamilk, according to FrieslandCampina Viet Nam public relations manager Nguyen Ngoc Kinh Luan.

"To achieve such a large market share and increase competitiveness, the company has improved quality from raw materials to production technology," Luan said.

The company's dairy farms produced 60 million litres of fresh milk annually, accounting for around 25 per cent of the domestic demand for raw materials, he added.

"Milk demand is going to keep rising sharply, especially in this Year of the Dragon, with many families thinking it's a lucky year to have babies," he said.

Meanwhile, market-leader Vinamilk currently accounts for 80 per cent of the domestic condensed milk market, 90 per cent of the yogurt market, 50 per cent of the processed milk market, and 25 per cent of the fresh milk market.

Vinamilk general director Mai Kieu Lien predicted Vinamilk would be able to increase its market share by 1-2 per cent per year and would increase its share of the fresh milk market from 25 per cent to 40 per cent. Under its development strategy through 2017, the company expected to become one of the 50 largest dairy producers in the world.

Vinamilk has dairies in New Zealand in addition to its 10 in Viet Nam operating at full capacity and projected that it would increase the number of cows at its farms from 9,500 head in 2012 to 28,000 in 2016. It has built the Lam Son Dairy Plant in the central province of Thanh Hoa at a cost of VND276 billion to serve the markets in Thanh Hoa, Nam Dinh, Thai Binh and Ninh Binh provinces. The plant would begin production next year.

"According to the Ministry of Agriculture and Rural Development, fresh milk production in Viet Nam in the coming years will only meet 22-25 per cent of the local demand," Lien said. "So, the dairy industry in Viet Nam has great potential for development in the future."

Mini-marts sprout up in HCM City

Opening mini supermarkets and convenience stores is becoming a new retail trend in HCM City.

Many people do not want to go to supermarkets for minor purchases because of the time it takes for parking and queuing up.

There is no inherent advantage in shopping in supermarkets either, with the prices of some products being higher there than outside and the quality of frozen food not being uniformly good.

Thus, mini supermarkets and convenience stores are an idea whose time has possibly come, especially in suburban areas.

Vu Van Trinh, general director of the Titanmart chain, concurred. His company found that demand for fresh foods and others was increasing rapidly in suburban areas like Hoc Mon, and Thu Duc Districts, so it decided to set up mini supermarkets there, he added.

There has been early success. Trinh said his company had eight mini supermarkets which last year achieved a revenue growth of 20 per cent.

"We are looking for places to open more mini supermarkets this year and at the start of 2013," he told Viet Nam News.

The Viet Nam Fashion Trading Company Ltd (Vinatexmart) has this year opened two new mini supermarkets, which boosted first-half turnover by 10-12 per cent.

The company plans to open three more this year.

The city Department of Industry and Trade reports that there are 251 convenience shores and mini supermarkets in the city, four times the 2005 number.

Typically, these outlets are 200-1,000sq.m in size and offer a great deal of convenience to customers by stocking 5,000-10,000 items including fresh food, garments, cosmetics, and footwear.

They are attractively displayed and frequently offer promotions.

Nguyen Thi Ut of District 9 said she had no time to go to traditional markets because of her business, and often shopped in convenience stores.

"They supply everything I need at reasonable prices," she said.

Besides supplying fresh food, these shops also play an important part in stabilising prices with their promotional programmes.

Many mini supermarkets like Foocomart, Titanmart, An Khang, and Satarmart also offer free delivery.

Vu Kim Hanh, director of the Centre for Business Studies and Assistance, said the new trend created a reliable distribution system for consumers and helped companies sell their products.

It also managed to take Vietnamese goods to suburban and rural areas, she added.

Downturn shrinks ICT event
 
The 17th Viet Nam Consumer Digital World Expo (VCW 17) opened yesterday in HCM City, organised by International Data Group (IDG Viet Nam) in conjunction with the HCM City Computer Association (HCA).

The scale of this year's event is smaller by 30 per cent compared with last year due to the global financial crisis, and domestic economic challenges, as well as the increased development of e-commerce.

The exhibition will display 13 types of products, including mobile and telecommunications equipment, digital ware, software, hardware, GPS, cloud-computing applications, smart-home applications and home-entertainment products.

More than 200 exhibits from 10 countries and territories are part of the event which will close on September 2. More than 200,000 visitors are expected.

Sony introduces a series of products, including a 3D TV with full HD version, its latest laptop, the Ultrabook – T Series, and an Xperia smartphone, as well as a Handycam, Walkman, PlayStation and opera-quality home audio equipment.

Taiwan Excellence showcases 18 brands in several product categories, with reasonable prices and good quality.

Canon offers its latest cameras, including a Power Shot S-series, the new IXUS and other professional cameras and printers.

HP brings laptops, an all-in-one desktop computer named HP Workstation Z1 and multi-purpose printers.

Microsoft focuses more on hardware products, including a mouse with Blue Track technology and optical light sensor.

The VCW 2012 this year focuses on youth, who account for the majority of trend-followers and technology users.

It is expected to maintain its position as the best IT exhibition in Viet Nam, bringing modern technology to the consumer and serving as a bridge between producers and end-users.

 Ethical firms to be honoured

Applications are being accepted for the Corporate Social Responsibility (CSR) Award to honour businesses for good performances in the areas of environment and labour in 2010-12.

The fifth awards are given away by the Viet Nam Chamber of Commerce and Industry (VCCI) together with several ministries and other agencies.

"The awards seek to raise businesses' awareness of their responsibility for the sustainable development of not just of themselves but also their community and society," Nguyen Quang Vinh, general director of the VCCI's Office for Business Sustainable Development, said.

They encouraged businesses to share their experience in labour management and helped link them up with international businesses and forums, he said.

"The awards are also expected to provide a motivation for businesses to continue improving working conditions for their employees and protecting the environment, thereby raising their own prestige and competitiveness," he said.

Speaking at a workshop held to announce the award in HCM City on Wednesday, Vo Tan Thanh, director of the VCCI's HCM City branch, said in the context of international integration, implementing CSR was indispensable if Vietnamese businesses wanted to enter the global market.

Florian Beranek, chief technical advisor for a United Nations Industrial Development Organisation (UNIDO) -VCCI CSR Project, said: "The EU Commission has previously defined CSR as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis."

Last year, it put forward a new definition of CSR as the responsibility of enterprises for their impacts on society and environment, he said.

Due to social pressure, businesses globally considered CSR an important strategy to help them stand out in the minds of employees, consumers, and potential partners, he said.

Vinh said many Vietnamese companies, especially exporters, had done very well in CSR. But many small- and medium-sized companies, whose products were mostly consumed domestically, did not pay much attention to it, and this should be changed, he added.

VCCI's partners in instituting the award were the Ministries of Labour, Invalids and Social Affairs, Industry and Trade, and Planning and Investment, the Viet Nam General Confederation of Labour, and Environmental Police Department.

The awards ceremony will be held next March.

 Tra fish exports likely to rise in third quarter

Tra fish exports are expected to increase by the end of the third quarter thanks to high demand from the international market, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP).

The increase is largely due to a higher volume of tra fish purchases by foreign importers to meet high demand during holidays at the year-end.

VASEP forecasts that tra fish exports in the third quarter will increase by 12 per cent against the second quarter, reaching an export value of US$480 million.

Tra fish contributes 26.3 per cent to the nation's total seafood export turnover. Total export turnover of tra fish this year would likely reach $1.8-2 billion, the association's general secretary Truong Dinh Hoe has said.

Hoe said that the price of tra fish was increasing, proving that global demand remained high. He added that the export-turnover goal for the year was reachable if the industry maintained tra fish quality and kept the same number of partners.

The US, the EU and Southeast Asia continue to be the biggest markets for Vietnamese tra fish.

VASEP said that since the end of the second quarter, tra fish exports had increased by 27-30 per cent in the US, and by 30-40 per cent in Southeast Asia.

In the two first quarters of the year, tra fish exports did not gain a good result due to the global recession. In the first quarter, the export value year-on-year increased by 13 per cent, and in the second quarter, it rose only 6 per cent, reaching $428 million.

For the first six months of the year, the export value of tra fish was $854 million year-on-year, up by only 3 per cent.

SII to invest in a water project in Pleiku

The Saigon Infrastructure Real Estate Investment JSC (SII) yesterday concluded an agreement with two partners to jointly invest in a water supply project in Pleiku, the capital of the Central Highlands province of Gia Lai.

SII will invest 40 percent stake of the expected VND190 billion (US$9 million) cost.

Thirty per cent would be brought in by HFIC Investment Joint Stock Company, 25 per cent by the Pleiku-based Tuan Loc Company, and 5 per cent by an individual investor, SII vice chairwoman Giao Thi Yen said.

The project, when completed in 2014, will expand the town's water supply by 30,000 cubic metres per day. Work on it will begin next year.

It is one of seven in SII's portfolio by 2014 to focus on water supply and treatment, general director Truong Khac Hoanh said.

They will together need around VND5 trillion (US$240 million).

A part of the funds is expected to come from preferential sources because investment is in environmental infrastructure, SII's core business.

Also yesterday SII signed a strategic partnership agreement with HFIC Investment JSC.

HFIC Investment JSC, an affiliate of the (State-owned) HCM City Financial Investment Company, is a consulting firm which is also involved in investment in the private sector.

SII has received approval from the HCM City Stock Exchange to list in mid-September.

The reference price has been set at VND12,500, Yen said. It can trade at up to 20 per cent on either side of the price on listing day.

Seminar helps firms improve management

A seminar to help businesses better manage and access capital was held yesterday in HCM City with the participation of more than 200 economists and firms.

Deputy general secretary of the Viet Nam Chamber of Commerce and Industry (VCCI) Vo Tan Thanh said that the Government's measures to control inflation and stabilise the macro economy would help improve the business environment. Therefore, it was necessary to help firms access capital and use it more effectively.

Representative from the VCCI's Viet Nam Business Insight Survey Doan Thi Quyen said as firms have so far faced major capital shortages due to high unsold inventories, the Government should speed up investment projects, encourage firms to use each others' products, develop the domestic market and enlarge export outlets to stimulate consumption.

Economist Dinh The Hien recommended that firms should accept a certain level of losses and sell off their products at cheaper prices to retrieve capital. They should also offer larger promotions to be able to win big contracts.

As for production, Hien suggested firms buy only enough raw materials for production instead of buying extra for speculation as they previously did.

It was also necessary for firms to work together to rotate capital and reduce loans, he said.

Economist Tran Du Lich said that the Government should try to avoid inflation to help businesses.

Lich forecast that the Government next year would continuously take measures to stabilise the macro economy and would not lose financial policies.

The country's economy next year would not change significantly with slow growth, Lich said, adding that investment and consumption would also remain low.

 Big C donates $19,000 to communities

French supermarket chain Big C has selected 13 community projects to implement this year as part of its "Big Community" contest, which has received a total of 76 entries.

The second contest, designed for Big C staff, encourages them to develop community projects that improve the living conditions of the poor.

Each project will receive funds of VN#40 million (US$1,915).

The projects include bringing clean water to poor students in a rural area in Ha#i Pho#ng, vocational training for the poor, and help for the disabled in Nam #onh Province.

Last year, eight community projects worth VN#320 million were implemented

Business competition for kids
 
HSBC successfully closes second JA More than Money in Viet Nam. The winning teams of the "Kids Run Business" competition experienced an HSBC tour and SMART Day where they applied their recently learned financial skills.

HSBC Bank (Viet Nam) Ltd.'s financial literacy programme for elementary students, JA More Than Money, drew to a close last week with the Kids Run Business competitions and awards ceremony in both Ha Noi and HCM City.

Winners were selected based on how well they used skills they learned in JA More than Money, such as co-operative decision making, conducting market research, calculating set-up and running costs for a small business. Teamwork, presentation skills, profit orientation and attention to business ethics were also considered.

The programme is part of a suite of HSBC initiatives to promote greater financial knowledge in Viet Nam. Other projects include teaching personal financial management to young women and youth in remote areas and boosting financial education amongst high school and university students.

 Belgian chocolatier names distributor

Callebaut, a famous Belgian-chocolate brand, has chosen United Vision as its sole distributor in the Vietnamese market.

The 100-year-old company makes chocolate from ingredients imported from Belgium. It will target four – and five-star hotels, high-grade confectionery companies and other food-and-beverage outlets in Viet Nam.

 Thai retailer eyes Viet Nam market

The Berli Jucker Corporation (BJC), one of Thailand's leading retailers, is implementing new plans to penetrate Viet Nam's retail market, with a contract worth from 1 to 3 billion Baht (about US$32 – 96 million), President of the BJC's Management Board Aswin Techajaroenvikul said on Wednesday.

If the contract is signed with a Vietnamese retail corporation, the BJC will expand its supply network to 200,000 stores from the current 50,000, becoming a leading supplier in Viet Nam: an important step towards expanding its retail system in all member countries of the Association of Southeast Asian Nations. Its annual sales in Viet Nam are expected to reach 5 billion Baht, up 150 percent.

The Thai corporation now owns a glass factory and a tissue factory in Viet Nam.-

South Korea-ASEAN forum gathers

The Vietnam Academy of Social Sciences in conjunction with the Korea Foundation and Seoul National University held the seventh RoK-ASEAN Co-operation Forum from August 29-30 in Ha Noi.

The two-day forum, themed "A better world in diversification", marked the 20th anniversary of the establishment of Viet Nam-Republic of Korea (RoK) diplomatic ties. It aimed to strengthen multi-faceted co-operation between the RoK and Viet Nam as well as other countries in the Association of Southeast Asian Nations (ASEAN).

During the event, officials, diplomats and scholars from the RoK and ASEAN member countries discussed issues of common concern in East Asia including sustainable growth and sustainable development, migration, regional security and cultural exchange.

In a session on the RoK-ASEAN development co-operation, Vietnamese and RoK scholars affirmed that green growth was a new direction of development and a potential channel for co-operation between Viet Nam and the RoK. The scholars also put forward proposals to boost the RoK-ASEAN strategic partnership.

Bank aims to save seafood company

The Sai Gon – Ha Noi Bank (SHB) says it will move to restructure the debt-ridden Bianfishco firm in a bid to save the seafood processor.

SHB recently acquired a 50 per cent in Bianfishco.

"Bianfishco's debt was previously owed to Habubank, and we have to take charge of this after the merger," said SHB general director Nguyen Van Le.

SHB chairman Do Quang Hien said Bianfishco was in a good position to overcome its current challenges.

"Bianfishco is among a few companies in the fisheries sector licensed for direct exports to the US market with an export tax rate of 0 per cent," Hien told the Vietnam Investment Review.

During a period of stable operation, Bianfishco earned an average revenue of US$100 million per year. Its troubles last year and current losses are estimated at VND600 billion ($28.5 million).

The restructuring will be conducted by both SHB and the Ministry of Finance's Debt and Asset Trading Corp.

Sources from SHB said other banks had agreed to reschedule Bianfishco's debts. The Bank for Investment and Development of Viet Nam and Viet Nam Development Bank will negotiate to convert the debt into stakes as Bianfishco increases its charter capital. The seafood processor expects to increase capital to VND1.2 trillion ($57.1 million) from VND500 billion ($23.8 million) when business operations become stable.

SHB has moved fast to restructure Bianfishco, as its merger with Habubank has only recently been completed.

Doubts have been raised over whether the bank wanted to take-over Bianfishco. However, Le said the rumours were not true.

Canadian trade minister highlights potential

Canada's expertise and know-how offer Viet Nam great potential for collaboration in several fields, especially in the education and oil and gas sectors, according to a Canadian official who visited HCM City this week.

Ed Fast, Canadian Minister of International Trade cum Minister for the Asia-Pacific Gateway, said Viet Nam's political stability and fast economic growth were attractive to investors.

Many large Canadian companies like Manulife, Bombardier, Talisman and Scotiabank have a well-established presence in Viet Nam.

Bilateral trade has gone up by more than six times over the last 10 years, reaching nearly $1.7 billion last year.

"But when you look at the amount of trade, and especially investment, there is so much more that we can do," he said.

He said Canada wanted to enhance cooperation with Viet Nam in the educational sector and increase the number of Vietnamese students who choose Canada for their studies.

"Canadian schools are working closely with Vietnamese partners to deliver high-quality programmes and curricula," he said.

Canada is negotiating a Foreign Investment Promotion and Protection Agreement with Viet Nam.

When the negotiation is completed, it is expected to open great opportunities to enhance investment between the two countries.

Meanwhile, Canada is also joining Viet Nam and other regional partners at the Trans-Pacific Partnership Agreement negotiations, which would help increase trade between the two countries.

Viet Nam and Canada will mark the 40th anniversary of their diplomatic ties next year.

Besides Viet Nam, the Canadian ministerial delegation is also visiting Thailand, Cambodia and Myanmar to seek new business opportunities.

VN, Pakistan plan $500m two-way trade

Viet Nam and Pakistan are determined to achieve a target of US$500 million in bilateral trade by December 2013.

This was decided at the second session of the Viet Nam-Pakistan Joint Trade Commission in Islamabad, Pakistan from August 28-29.

The Vietnamese delegation was led by Deputy Minister of Industry and Trade Le Duong Quang.

The two sides proposed the signing of a co-operative agreement between the Trade Development Authority of Pakistan and Viet Nam's Trade Promotion Agency to achieve the target.

During the meeting, a memorandum of understanding was signed in which Pakistan recognised Viet Nam as a full market economy.

Pakistan called on Viet Nam to create more favourable conditions for Pakistani businesses, especially the granting of visas.

In return, Viet Nam asked Pakistan to assist in preventing trade fraud.

 Deputy PM pushes Swiss for investment

The Vietnamese Government was always keen to listen to comments from Swiss investors, Deputy Prime Minister Nguyen Thien Nhan said yesterday.

Addressing a meeting with 43 Swiss business people at the Swiss-Asian Chamber of Commerce in Zurich on Wednesday, Nhan said bilateral economic co-operation had brought positive developments despite the world's economic downturn and the European public-debt crisis.

He praised the chamber's efforts in backing Swiss businesses invest in Viet Nam and hoped it would lead to more opportunities.

Deputy Minister of Industry and Trade Nguyen Nam Hai said two-way trade reached almost US$3 billion last year. Switzerland now had 89 investment projects in Viet Nam totalling almost $2 billion, ranking fourth among European nations and 19th among the 95 countries and territories investing in Viet Nam.

Chairman of the Swiss chamber's Viet Nam Committee, Adolf Meier, and Deputy PM Nhan said they believed future two-way trade would grow strongly.

Talking with a Viet Nam News Agency correspondent in Switzerland , Director of the HCM City-based TIM Investment and Management Consulting JSC, Marco Martinelli, said there was huge potential for investment in Viet Nam .

During their five-day tour to Switzerland, Nhan and his entourage are also scheduled to meet Swiss Economy Minister Johann Scheneider Ammann and Interior Minister Alain Berset.

 Banks re-ignite interest war
 
Commercial banks are vying with each other to lend at low interest rates as they scramble to achieve their credit growth targets for the year.

According to State Bank of Viet Nam statistics collated from 20 lenders' reports, several banks have offered to provide loans totally worth VND80 trillion (US$3.84 billion) and $1.1 billion in at 7-14 per cent interest.

Maritime Bank's rates are among the lowest.

In August it officially launched import finance product MFloat with a credit line of VND5 trillion at a fixed interest rate of 7-9 per cent.

The fixed interest rate has to be paid every month while an additional interest rate has to be paid at the time of borrowing or closing a loan.

Vietcombank said it has offered seven credit packages worth a combined VND31.5 trillion and $1 billion at 10-15 per cent for companies in all sectors.

It has also lent at 10-13 per cent for agriculture and rural, export, and support industries.

Agribank has earmarked VND37.68 trillion at a maximum of 13 per cent for short-term loans and 15 per cent for long – and medium-term loans for agricultural and rural companies.

It has also designated VND10 trillion for export activities.

Despite not having plentiful funds like the major banks, small banks too have unveiled credit products targeting customers'needs.

ABBank, for instance, is offering VND1 trillion at 12 per cent or more.

From September, SeABank will offer a preferential credit package worth VND600 billion for businesses in rice farming, processing, and export at 2 per cent below normal short-term rates.

In December, it will offer six-month preferential loans worth VND1 trillion to businesses in the coffee and seafood sectors at 1 per cent below short-term rates.

Ocean Bank has earmarked VND500 billion for three industries – electrical and electronic equipment, telephones; residential services, tourism; and health care.

They will carry a mere 6.8 per cent interest.

Independent economists appreciated the banks' efforts to cut lending interest rates, saying the move harmonised the benefits of both lenders and borrowers.

The banking industry's credit growth rate of nearly 2 per cent in the last eight months has been far lower than in past years. Analysts point to this as one the reasons for the country's sluggish economic growth.

 Equipment manufacturers lose out
 
Though an increasing number of power plants are being planned in Viet Nam, domestic firms are unable to get contracts to supply equipment to them mainly because they are unable to arrange for credit to build the plants.

A national power industry plan for up to 2025 envisages the construction of 52 power plants with a total capacity of more than 54,700 MW.

Chairman of the Viet Nam Association of Mechanical Industries, Nguyen Van Thu, told Viet Nam News that 35 of them would be built by domestic investors.

"Equipment will have to be bought for all the plants," he said.

Although Vietnamese companies could not produce the main equipment for power plants like turbines because of a lack of resources and technology, they could supply 28-30 per cent of other equipment, he said.

"This is a promising opportunity. Unfortunately, the chance has been lost."

Vietnamese investors, faced with a cash crunch, had turned to foreign suppliers and contractors for financial reasons, he explained.

"Foreign contractors offer Vietnamese investors credit and other financial support."

Phan Dang Phong, deputy director of the National Research Institute of Mechanical Engineering, concurred.

He told Viet Nam Economic Times that while the country was a big market for power equipment, only foreign firms were benefiting.

He said 90 per cent of the contractors and suppliers were from China and they brought equipment that could be manufactured in the country and their own personnel.

"The country is pouring money into building power plants but its companies and people do not benefit," he said.

The Ministry of Industry and Trade should assess the capability of equipment manufacturers in the country to award them suitable projects, they said.

Power-plant investors who flout the law with regard to equipment purchase should be punished, they added.

Thu said power plants built with public money should be required to buy equipment from domestic companies, if available.

 Industry ramps up while inventories remain high

The industrial production index in the first eight months of this year reflected a better performance but inventory index was still rather high, reported the General Statistics Office (GSO) yesterday.

The industrial production index (IPI) increased by 4.1 per cent in August against the previous month. Consequently, the IPI rose by 4.7 per cent in the first eight months from the same period last year.

Some manufacturing sectors made great contributions to the index's positive growth. Notably, the ship-building industry skyrocketed 150 per cent and communication equipment production went up 64 per cent.

Production of spare parts for motorised vehicles also accelerated by 44 per cent. Electronic component manufacturing went up 29 per cent and crude oil exploitation was up 14 per cent.

Other manufacturing industries that saw positive growth included minerals, power and gas, water supply and sewage drainage.

However, according to the GSO, the inventory index of industrial products was still high. Particularly, the inventory index of fertiliser and plastic products in the first eight months increased by 81 per cent and 69 per cent respectively.

The inventory index of the battery sector grew 40 per cent, and the seafood and beer industries went up 35 and 29 per cent respectively.

The GSO experts said that production was better, but poor consumption did not improve, so enterprises would continue to face difficulties.

Therefore, besides preferential policies on commercial loans' interest rates, the Government and relevant State bodies should further bolster solutions to accelerate consumption and decrease inventories, they said.

‘Sale Promotion Month’ kicks off in HCMC

During ‘Sale Promotion Month’ launched on Thursday night at the Phu Tho Indoor Stadium in Ho Chi Minh City, about 2,700 retail outlets will offer huge discounts on hundreds of products throughout the month of September.

This year, the ‘Sale Promotion Month’ has attracted more than 750 businesses to participate, up by seven percent over last year, who will sell their products at huge discounts in 2,700 retail outlets.

There will also be a ‘Promotion Fair’ held during September in which 250 businesses will display their goods at more than 430 stalls from August 30 to September 3.

The ‘Sale Promotion Month’ is part of the campaign ‘Be Vietnamese Buy Vietnamese’, organized by the State Politburo.

According to the HCMC Department of Industry and Trade, businesses have registered to offer discounts on 10 groups of commodities and services like garments, foods and beverages, household appliances, cosmetics, electronic items, tourism and banking services.

Promotional Market Days will also be hosted in industrial zones and dormitories to reach workers and students.

Twenty five leading businesses in HCMC will organize mobile stores to sell subsidized goods in the outlying suburban districts of HCMC.

Cooking gas to cost more from September

Retail price of cooking gas will hike by VND51,000 on a 12kg cylinder from 7.30am on September 1, with one cylinder to cost between  VND418,000-425,000.

A representative of Vietnam Gas Association said that the price has been hiked because of increase in import price, which has jumped by US$175 to touch $950 a ton.

Cooking gas prices have surged by VND102,000 on a 12kg cylinder within the last two months.

Since the beginning of the year, the retail price of cooking gas has hiked six times, a total of VND240,000 on a 12kg cylinder and reduced four times by VND163,000.

Ministry kicks off construction of Nam Can Bridge

The Ministry of Transport and the People’s Committee of the southern-most province of Ca Mau held a groundbreaking ceremony on Wednesday for the construction of the Nam Can Bridge, the last bridge on the Ho Chi Minh Highway.

Nam Can Bridge is a key part of the second phase of the Ho Chi Minh Highway that runs from the southeastern province of Cao Bang all the way to Ca Mau Province in the extreme southern tip of Vietnam.
 
The Prime Minister has instructed the transport ministry to speed up construction of the Nam Can Bridge to complete by 2015, so that the entire Ho Chi Minh Highway route can open for traffic as per schedule.

Nam Can Bridge covers a total length of 3,390 meters linking Ngoc Hien District to Nam Can District. Once complete, the bridge will allow fast vehicular traffic at speeds of upto 80 kilometers an hour.

Construction of the bridge is expected to complete within 18 months at a total cost of about VND650 billion (US$31.17 million), most of which will come from Government bonds.

Children of Truong Sa soldiers receive scholarships

The Fatherland Front Committee in Ho Chi Minh City offered 100 Nguyen Huu Tho scholarships worth VND1 million each and 4,000 notebooks to children of navy soldiers, who are currently protecting the country's sovereignty on Truong Sa (Spratly) archipelago, in Cam Ranh Town of Khanh Hoa Province on August 28.

A delegation from the City also handed over VND30 million to soldiers of the High Command of Navy Region 4 and encouraged them to focus on their work offshore.

On the same day, the municipal Fatherland Front Committee granted Nguyen Huu Tho scholarships, 12 bicycles, and bus tickets to 352 disadvantaged students in Binh Khanh Commune in Can Gio District.

In Da Lat resort town in the central highland province of Lam Dong on August 28, the Science and Education organization also offered 151 scholarships worth VND7-11 million each to disadvantaged and excellent students in highland and South Central Coastal regions.

Gold demand remains strong

Although gold prices saw no strong fluctuations, demands for the precious metal kept rising in the country on Wednesday, again widening the gap between global and local gold prices.

Saigon Jewelry Company (SJC) sold up to 6,000 gold taels on Wednesday. According to Nguyen Cong Tuong, deputy sales manager of SJC, daily selling volume of the company has been around 5,000 gold taels since August 20.

SJC has recently processed 48,000 gold taels but the information failed to ease gold demands, Tuong said.

SJC has seen large transactions of up to hundreds of gold taels ordered by banks and large enterprises.

Explaining the strong demand for gold, a representative of the central bank said that many banks have increased gold buying to spur liquidity after people have shifted to gold. Although some enterprises have suggested the central bank to import more gold to stabilize the market, the agency currently has no plans for gold imports, saying that domestic supply is enough to serve local buyers.

SJC on Wednesday quoted gold prices at VND44.37 million and VND44.57 million a tael for buying and selling respectively, rising by VND100,000 against the previous day. A tael equals 1.2 troy ounces.