US’s steel antidumping investigations groundless: spokesman

The US Department of Commerce (DOC)’s launch of investigations into the dumping of circular welded carbon-quality steel pipes imported from five countries, including Vietnam, is groundless, stated Foreign Ministry spokesman Le Hai Binh.

Replying reporters’ queries on Vietnam’s response to this issue at the ministry’s regular press conference on November 26, Binh affirmed that Vietnamese companies are operating in accordance with the market mechanism without subsidies from the Government and they don’t dump the product in the US market.

The DOC should acknowledge and address the issue objectively and fairly in the spirit of trade liberalisation and in accordance with commitments to multi-lateral trade liberalisation as well as the growing economic ties between Vietnam and the US, he added.

Garment & textile exports to hit 27.5 bln USD

The exports of garments and textiles in 2015 are expected to reach 27.5 billion USD, up 11.3 percent from the same period last year, as heard at the Vietnam National Textile and Garment Group’s fifth Congress for the 2016-2020 term in Hanoi on November 26.

According to Chairman of the Vietnam National Textile and Garment Group (Vinatex) Vu Duc Giang, Vietnamese garment and textile enterprises have actively participated to the campaign “Vietnamese people prioritize Vietnamese goods” with a view of pushing for the domestic market’s growth.

Many enterprises have achieved higher turnovers and expanded their outlets nationwide.

The garment and textile sector has overcome difficulties, maintaining a stable growth and surpassing its target from 2010-2015.

The sector’s average growth rate in the period was 14.75 percent, contributing significantly to the country’s export turnover while maintaining Vietnam’s position in the list of the world’s top five garment and textile exporters.

Jollibee begins franchising in Vietnam

Jollibee has begun franchising in Vietnam, marking a new strategy in the country for the Philippine fast food chain.

A five-year franchise contract, estimated to cost 4.5-5 billion VND (200,500-223,000 USD), will see Jollibee advise on staff training, restaurant layout, equipment, raw materials and others. Franchisees will also benefit from the company's marketing activities.

Tran Thi Lan Anh, deputy chairwoman of Jollibee Food Corporation and general manager of Jollibee Vietnam, said the company would have 73 of its stores nation-wide by the end of this year, up from 69 now.

Founded in 1975 as a single ice cream parlour in Manila, Jollibee is today the flagship brand of a family-run empire that spanning 12 brands and 3,000 locations around the world.-

HCM City anticipates 9.8 percent GDP growth in 2015

Ho Chi Minh City expects its gross domestic product (GDP) growth rate at 9.8 percent in 2015, according to the municipal Department of Planning and Investment.

Reports at a meeting discussing the metropolis’s socio-economic performance on November 26 revealed that the southern economic hub’s index of industrial production (IIP) is estimated to grow by 7.7 percent year on year during the 11 months ending in November, compared to 6.8 percent of the same period last year.

Particularly, the IIP of the four key industries (engineering mechanics, electronics, chemistry – rubber – plastics, and food processing) is estimated to increase by some 8.1 percent from a year before.

The upward trend in foreign investment attraction is also spotlighted. By November 20, 517 foreign invested projects were licensed while 141 others raised their capital. Up to 3.2 billion USD was poured into the new and existing projects, up 1.7 percent annually.

Meanwhile, nearly 28,700 new domestic businesses were set up.

The municipal statistical office said sound market supervision and price stablisation programmes have helped curb HCM City’s consumer price index, leading to a monthly 0.1 percent hike in the November figure. Total retail sales of goods and services this month is roughly 60.4 trillion VND (2.66 billion USD), climbing 8.9 percent year on year.

At the meeting, Deputy Director of the Department of Planning and Investment Su Ngoc Anh reported more than 247 trillion VND (10.87 billion USD) was collected for the State coffer in the past 11 months, rising by 5.63 percent from a year before.

Chairman of the municipal People’s Committee Le Hoang Quan said the city has fulfilled 18 of the 19 set targets and achieved a stable economic growth so far.

He attributed the attainments to the implementation of economic restructuring, property selling, administrative reforms and investment climate improvement, thus building up enterprises and investors’ trust in local economic development potential.

He asked for more actions to be taken by relevant agencies, localities and businesses to realise the 9.8 percent GDP growth rate and gear up for the ASEAN Economic Community which will be formed at the year’s end.

Vietnam to establish goods transportation information centres

Vietnam will establish goods transportation information centres to make the sector more transparent, effective and efficient, according to Nguyen Van Quyen, Deputy Head of the Directorate for Roads of Vietnam.

The centre will serve as a place to connect transport companies with goods owners to maximise the transport capacity of vehicles and cut costs, said Quyen.

The centres will provide more information than previous methods and boost transport productivity. They’ll also help reduce the number of vehicles travelling on the street and greenhouse gas emissions, he added.

In 2014, the directorate created a project on reforming the management of road transport to improve service quality and ensure transport safety. The project aims to study the feasibility of goods transportation information centres.

The directorate has been implementing steps to form centres in the near future. It sent a working group of leaders and professionals from the Ministry of Transport and the directorate to visit and learn about a similar centre in Hong Kong (China).

According to statistics from the Asian Development Bank, the rate of empty trucks in Vietnam ranges from 30% to 50%. This is a major factor contributing to high logistics costs in Vietnam.

Of total transport costs, logistics costs make up 20% in Vietnam, according to the Asian Development Bank. The number in ASEAN countries is 10-15%, and 6% for many developed countries.

Russian keen on Vietnamese rice

Rice exports to Russia saw a sudden increase in the 10 months leading up to November, up 2.02 times in volume and nearly 80% in value, according to the Ministry of Agriculture and Rural Development (MARD).

The MARD also reported that in November alone, the country shipped 885,000 tonnes of rice to get US$372 million, bringing the total rice export volume in 11 months to 6.24 million tonnes valued at US$2.65 billion, up 3.6% in volume but down 4.9% in value against the corresponding period last year.

The average export price dropped 7.4% to US$426.04 per tonne, said the MARD.

China remained the top importer of Vietnam rice in 10 months, accounting for 34.49% of the market share. Exports to the market jumped 7.21% in volume but dipped 1.36% in value.

Markets with high growth included Malaysia (11.5% in volume and 2.24% in value), Ghana (34.5% in volume and 9.07% in value) and Ivory Coast (nearly 50% in volume and 39.07% in value).

Meanwhile exports to the following markets fell sharply, for example Philippines (down nearly 27% in volume and 33% in value), Singapore (37% in volume and 35% in value), Hong Kong (30% in volume and 37% in value) and the US (32% in volume and 26% in value).

Vietnam’s rice shipments could hit 6.8 million tonnes

Vietnam’s rice exports are likely to reach 6.8 million tonnes in 2015, according to the Ministry of Agriculture and Rural Development’s Centre for Informatics and Statistics.

The figure was revised from the centre’s previous 6.02 million tonne forecast.

Vietnam saw continual year-on-year deceases in rice exports during the first 10 months of 2015 and has just recorded a rise in November.

The rebound is attributable to the country’s signing of rice export contracts with the Philippines (450,000 tonnes) and Indonesia (1 million tonnes) in October. The contracts, valid from October 2015 to March 2016, helped the rice export volume in October and November almost double that of the previous months.

Rice sacks are loaded onto a truck at a food processing company in Ho Chi Minh City's Binh Chanh district (Photo: VNA)

Vietnam shipped abroad 6.24million tonnes of rice worth US$2.65 billion in the 11 months of 2015, up 3.6% in volume and down 4.9% in value from the same period last year.

Between January and October, China was still the biggest rice buyer of Vietnam, accounting for 34.49% of the total exported.

The rice volume destined for Malaysia climbed 2.24% to account for 8.7% of the exported, making the country Vietnam’s third largest rice importer. Ghana ranked fourth with a hike of some 9% in Vietnamese rice imports, followed by Ivory Coast (up 39%) and Indonesia (up 3.65%).

Meanwhile, rice shipments to China’s Hong Kong dropped 37%, the Philippines down 33%, Singapore down 35% and the US down 26%, data show.

A bountiful year ahead for pepper exports

The nation’s farmers are having a prosperous year, having shunned coffee and switched to growing peppers in the face of higher prices and robust global demand, said the Vietnam Pepper Association (VPA) in a recent report on the industry’s status.

The VPA says the nation’s farmers have increased cultivation areas under pepper by as much as 15%.

In the nine months leading up to October the average export price of black pepper jumped 25.3% year-on-year to US$9.500 per metric ton with the figures tallying in at 117,000 metric tons valued at US$1.11 billion.

The VPA now forecasts exports to climb to a hefty 130,000 metric tons at US$1.2 billion for calendar year 2015 and that the country will retain its leading exporter status of the treasured black pepper commodity.

Pepper production has climbed 36% during the past five years says the VPA, helping the country to supply about half of the global demand. Meanwhile pepper prices have spiked three-fold over the past five years.

The cultivation area rose to 83,800 hectares in 2014 from 55,500 hectares in 2011, producing 147,400 metric tons of pepper last year, much more than India, which  produces about 70,000 metric tons of pepper from an area of about 1,22,000 hectares.

Meanwhile world pepper consumption is estimated to have been growing at an average pace of 2-3% per annum over the past few years, which growth sees no sign of abating.

“The industry has attracted leading brands from Japan, the US, Singapore, India and the Netherlands, which have constructed a number of processing plants throughout the nation,” said Head Tran Duc Tung of the VPA.

Tung said they have most significantly helped the industry improve overall quality of its products, which has helped improve the industry’s image around the globe.

At present, pepper has been shipped to more than 100 nations around the globe. However, the country should improve the added value of its pepper to make further inroads into the global wholesale markets.

The VPA noted there is a movement afoot among farmers who want to improve pepper output, leading to the expansion of cultivation areas and the reduction of abusive uses of pesticides in pepper cultivation.

The Ministry of Agriculture and Rural Development (MARD) has issued a number of decrees and policies related to production and harvest activities to help farmers tackle these thorny problems.

“In addition, MARD has launched a number of trade promotion programs to improve the situation,” said Mr Tung.

Mr Tung said to meet export demands, the ministry has instructed farmers in remote areas and the Central Highlands to grow pepper trees in compliance with VietGAP standards and apply advanced post-harvest preservation measures.

In addition, MARD has constructed a research centre to develop pepper trees in the Central Highlands and publicize scientific knowledge to farmers and the general public.

Mr Tung emphasized pepper processing should also strictly comply with food hygiene and safety requirements and, if properly implemented, exports should be looking at many bountiful years ahead.

Integration: Bane or boon to garment exporters?

The nation’s garment and textile industry grossed revenues of over US$106 billion during the five-year period 2011-2015, according to the Vietnam Textiles and Garment Association (VITAS).

Vitas President Vu Duc Giang unveiled the figures at a conference on November 26 in Hanoi assessing the outlook for the industry over the five-year period 2016-2020 and the impact that free trade agreements may have.

“The major export markets are the US, EU, Japan, the Republic of Korea (RoK) and ASEAN,” said Giang, which are pretty much in a state of flux given the rapidly changing economic landscape brought about by global integration.

At the conference speakers tossed around a lot of ‘pie in the sky’ numbers for industry exports over the next five year’s but obviously no one can predict with any reasonable degree of certainty what the future holds.

This year, garment and textile exports are forecast to reach US$27.5 billion and who knows, if the stars line up and if the industry could achieve average annual growth of 11.5% maybe gross revenue might double by 2020.

However, more importantly Giang pointed out is that the focus should be on the creation of good paying jobs for Vietnamese workers because all of the profits from FDI companies will eventually be paid to their foreign owners.

Vietnam’s instant coffee exports on upswing

Vietnam has risen to fourth place among instant coffee exporters worldwide in 2015, with total expected shipment of 675,000 tonnes, up 25 percent from previous year, according to the Vietnam Coffee and Cocoa Association (VICOFA).

In the past few years, instant coffee plants have sprouted up in the country as a result of an estimated one billion USD in investment that both domestic and foreign business poured into the sector. Those plants have consumed large volumes of coffee beans and boosted instant coffee exports.

According to industry experts, the processing and export of instant coffee generates higher profits while creating jobs for local labourers.

However, it is crucial to advertise and seek markets for Vietnamese instant coffee brands as the construction of processing plants requires large investment, they said, suggesting that the Government and VICOFA support coffee companies with promotion activities to expand markets for instant coffee.

Instant coffee currently accounts for 14% of the world’s coffee consumption. The figure is forecasted to grow by an annual 3 percent in the next five years, leaving huge potential for Vietnamese instant coffee exports.

Vietnam is now home to 19 coffee processing plants, which can produce up to 75,280 tonnes of instant coffee per year.

The Department of Agro-forestry, Fisheries and Salt Production under Ministry of Agriculture and Rural Development said that instead of setting up new processing plants, the Ministry will focus on renovating technology to increase products’ quality in the period from now to 2020.

Vietnamese instant coffee has been present in 40 countries in the world. Its two largest markets are the US and the EU. Local brands include Trung Nguyen and Vinacafe.

Rosneft oil company honoured with Vietnam's Labour Order

Rosneft Vietnam B.V, a company of Rosneft Group has received a governmental award from Vietnam fSocialist Republic of Vietnam - Labour Order Second Class - for the contribution to the Vietnamese petroleum industry, and strengthening of the friendship and cooperation between Vietnam and Russia.

On June 22, Rosneft Vietnam B.V. achieved an important milestone of its operational activity – 13 years of safe offshore operations. This is one of the best results in the industry.

May 1st, was marked by another distinguished accomplishment: Block 06.1 (Nam Kon Son basin) reached 300 million barrels of oil equivalent since the start of development. Rosneft Vietnam B.V. is the operator of Block 06.1.

In 2014, Rosneft production volumes at the Vietnamese shelf amounted to 38% of the overall gas production ofthe country. Around 14% of electric power produced in Vietnam in 2014 was generated from the Company’ gas.

Rosneft is the leader of gas production in Vietnam and keeps the status of a reliable hydrocarbons supplier to the country’s market.

The Company continues active development of its projects in Vietnam. Thus, in the beginning of 2016 exploration drilling is planned at Phong Lan Dai Deep field of Block 06.1 and Block 05.3/11 in early 2016.

Enterprises asked to prepare for TPP, ASEAN Community

Domestic enterprises have been urged to make meticulous preparations in order to make the most of opportunities brought about by the advent of the Trans-Pacific Partnership (TPP) and the ASEAN Community.

At a workshop held in the northern port city of Hai Phong on November 25, Phi Van Duc, Director of the Hai Phong Office of the Vietnam Chamber of Commerce and Industry (VCCI), said the TPP would open up new opportunities for Vietnam’s key export commodities like garments, footwear, seafood because drastic slashes of import tariffs in big markets like the United States and Japan.

The TPP would help Vietnam improve its investment environment and bring in new opportunities from a new supply chain expected to be formed after the TTP takes effect, Duc said, adding that the agreement would motivate Vietnam to complete its mechanisms, including mechanisms for a market economy, thus pushing forward the reform of growth model and the restructuring of the economy.

Vietnam’s economy is expected to grow faster and generate more jobs when the agreement takes effect. The TPP will also boost the quality of human resources, income and reduce poverty rate, he added.

According to Duc, however, to take advantage of those new circumstances, enterprises need to make good preparations. Otherwise, those with poor competitive capacity will face bankruptcy, causing unemployment and other social consequences.

Pham Chi Lan, an economic expert, mentioned opportunities offered by both TPP and ASEAN Community.

According to Lan, at the formation of the ASEAN Community, Vietnam will have more opportunities to approach markets and reduce its reliance on China; encourage domestic investment and attract foreign investment; involve deeper and more effectively into the global value chains and regional and global manufacturing networks from agriculture to industry and service.

Relating to the TPP, while the country’s export is expected to increase at faster pace, competition on the domestic market will grow tough with the increasing presence of foreign companies in all sections of the market.

Nguyen Duy Khien, Head of the American Market Department, said besides competitive advantage the TPP creates for Vietnam, it also fuels fierce competition and brings in complicated regulations and laws, requiring enterprises to build their own brands and boost cooperation.

Agro-fishery-forestry exports may meet yearly target

Vietnam’s agro-fishery-forestry exports in 2015 is likely to meet the set target of US$30 billion as total exports in 11 months ending in November reached US$27.41 billion, according to Ministry of Agriculture and Rural Development.

Vietnam sees a year-on-year fall of 1.9% in agricultural exports in 11 months, compared to a decline of 3.8 percent for the ten-month period ending October.

Exports of key farm products were estimated at US$12.74 billion, down 4% from the same period last year. The sharpest fall was seen in coffee (30.2%) and rubber (15.5%). Rice export also posted a 4.9% in value despite a 3.6% increase in quantity.

Meanwhile, upward trend was recorded in the export of pepper, cashew nut, cassava and cassava-based commodities with revenues rising from 2.9 to 19%.

Significant falls of aquaculture product shipments to the US (over 25%), Japan (13%) and the Republic of Korea (14%) resulted in the decline of 16.4% in total aquaculture export value in the reviewed period, which was forecasted to stand at US$6.01 billion.

Meanwhile, the export turnover of key forestry products was valued at US$6.4 billion, surging 8.2% from last year.

In the coming time, the Ministry will organize more trade promotion activities abroad, aiming to sell dragon fruits to the Japanese market and chicken to Russia while expanding foothold in potential markets, especially developed countries.

In the time ahead, the Ministry will keep production at certain level to increase quality and competitive capacity focusing on advantageous products of Vietnam such as rice, coffee, rubber, fish, pepper and cashew.

Major waterway put into use in north

The Ministry of Transport has opened to traffic a major waterway running through Lach Giang estuary in Nam Dinh Province after it was dredged to facilitate waterway transport in the province and the northern region as a whole.

The Lach Giang estuary component is worth VND1.6 trillion (around US$70.4 million) and belongs to the Northern Delta Transport Development Project (WB6) financed by the World Bank. The component will enable ships of 1,000-3,000 DWT to travel to river ports to load and unload cargo, thereby cutting transport costs and reducing road traffic.

The WB6 project is being implemented in 14 provinces and cities in the northern delta region at a total investment of US$200 million, with US$170 million funded by the WB and the remainder by the Government.

The first phase of the project is to upgrade the Viet Tri-Quang Ninh waterway corridor going through the Duong River. The waterway artery of the northern delta region has been put into use with an investment of US$60 million.

The waterway is expected to enhance waterway traffic among Quang Ninh, Haiphong, Hanoi and Viet Tri, and enable large container vessels to reach river ports.

Phase two of the project worth US$110 million comprises upgrade of the Hanoi-Lach Giang waterway corridor, construction of a breakwater and a river embankment section, installation of signal buoys for the entire route, and improvement of passages running through Lach Giang estuary.

According to the Ministry of Transport, river traffic requires low investment, hence low transport cost. However, it has not been developed adequately over the years since investment capital has been mainly spent on road projects.

To ensure sustainable development for the transport sector, the ministry has worked out more incentives for investors of waterway development projects. As a result, many sea lanes opened to traffic last year have helped ease road traffic considerably.

Farm produce exports to China hit 4.3 bln USD in first 9 months

Vietnam’s agricultural product exports to China reached about 4.3 billion USD in the first nine months of 2015 as heard at a conference on Vietnam-China trade and investment on agricultural product in Hanoi on November 24.

The event was organised by the Vietnam Chamber of Commerce and Industry, the Hanoi Investment, Trade and Tourism Promotion Centre and the China-ASEAN Centre reported Ha Noi Moi newspaper.

Representatives from the two countries’ enterprises exchanged information on fruit export-import demand, particularly in the context of the expansion of trade with third countries through Vietnam-China border gates.

Deputy Chairman of China’s Food and Agriculture Products Rong Weidong said China is a big market with high demand for importing Vietnam’s tropical agricultural products.

He recommended that businesses should increase electronic trade application and develop brand names in order to enhance competitiveness.-

West African delegation looks to study Binh Phuoc’s cashew sector

A delegation of officials from the Beninese Government and Ivory Coast’s cotton-cashew council is seeking cooperation with southern Binh Phuoc province to improve cashew cultivation techniques and productivity back home.

During a meeting with local authorities at Dong Xoai town on November 24, they said they wanted to establish joint working groups to forge partnerships with Vietnamese enterprises.

They asked for information on Vietnam’s import demand for the goods, and then invited local officials to visit West Africa in a bid to encourage long-term cooperation.

Vice Chairman of the provincial People’s Committee Nguyen Huy Phong said local producers are capable of processing 1 million tonnes of cashews per year. The quantity falls short of local demand, opening opportunities for imports.

With regard to the partnership, he proposed exchanging seeds and organising seminars.

Binh Phuoc would create favourable conditions for the delegation to study cultivation and processing methods in the province, he said.

According to Phong, 150,000 hectares of local cashews turned out 200,000 tonnes of raw cashews annually. There are 200 enterprises operating in the sector. Most of the processed products are exported, but some are distributed across major domestic markets, including Hanoi, Binh Duong and Dong Nai.

Red tape hampers economic growth

State officials and economic experts shared concerns over policy barriers that hinder domestic businesses amid global integration.

Vietnam has implemented major policies on overhauling mechanisms, cutting red tape and improving the business climate. These policies, however, have contributed little to boost the overall competitiveness of the economy.

Dau Anh Tuan, Head of the Legal Department of the Vietnam Chamber of Commerce and Industry (VCCI) , underscored the importance of encouraging innovation across provincial-level bodies.

The recently improved provincial competitiveness index reflected better business confidence, not changes in the status quo of local bureaucracies, he said.

Do Anh Tuan, Vice Chairman of the Small-and Medium-Sized Enterprises Association in Da Nang, said local companies are lacking intention of business expansion and interest in transition process following several signed free trade agreements.

Complicated regulations are responsible for the situation, as they make enterprises lose control of their costs, noted Tuan.

Le Minh Hai, Head of Da Nang-Mien Trung Investment JSC, complained about overlapping procedures that are time-consuming and costly.

He cited an example in which his company’s project, despite turning out products and being licensed by the municipal authorities, could not be used as a guarantee instead of a performance bond issued by the bank. In response to the inconvenience, the local Department of Planning and Investment said there was no precedent to work with.

VCCI Chairman Vu Tien Loc proposed that the Government continue to complete relevant legal frameworks, simplify procedures and enhance their quality.

Vice Chairman Do Anh Tuan from the Da Nang business association pointed out that innovation is essential for businesses facing the challenges that come with integration.

The Vietnam Cashew Association (Vinacas) has called on local enterprises to add more value to their cashew products to help Vietnam stay on as the world’s biggest cashew nut exporter.

Vietnam has been the world’s No. 1 cashew nut exporter over the past 10 years but 90% of domestically-processed products are packaged nuts, Vinacas said at an international conference on cashew business in HCMC on Monday.

At the conference, representatives of cashew enterprises painted a bleak picture for cashew exporters, saying that if cashew products are not added with more value, export growth would be affected.

Vinacas said a number of local firms have invested in modern technology and machines to make more value-added cashew products for export and domestic consumption.

The change was seen through cashew products on show on the sidelines of the conference. Unlike in previous years in which companies mainly made salty and honey cashew nuts, the exhibits this year included wasabi- and chocolate-coated cashew nuts; cashew nut cakes, pizzas, banh tet (Vietnam’s cylindrical glutinous rice cake filled with green bean paste and pork) and other foods with cashew nuts.

Vinacas chairman Nguyen Duc Thanh called for cashew businesses to pay due attention to packaging and marketing if they want to attract more consumers on the domestic market.

Over the years, enterprises in the sector have centered more on export of packaged cashew nuts than domestic marketing. Therefore, they should draw up marketing and promotion strategies if they want to ramp up domestic sales.

A long return on investment is one of the hindrances to cashew enterprises that turn out value-added products for sale at local supermarkets and convenience stores. To cope with this, a number of producers have managed to boost exports to have funds for expanding domestic market share.

The Ministry of Agriculture and Rural Development expects value-added products will make up 20% of total processed cashew nuts, according to a master zoning development plan for the sector until 2020 with a vision towards 2030, approved by the ministry in February this year. The aim for 2030 will be 40-50%.

Vietnam earned US$1.97 billion from shipping abroad 272,000 tons of cashew nuts in the first 10 months this year, up 6% in volume and more than 18% in value, according to the ministry.

Dang Hoang Giang, vice chairman of Vinacas, said Vietnam’s cashew nut revenue is forecast to reach a record high of US$2.5 billion this year.

Vietnam has exported cashew nuts to 50 markets, according to Vinacas.

GE’s Power Services business said on Monday that it will upgrade four GT13E2 gas turbines at the Phu My power complex of EVN Power Generation Corporation 3 (EVNGENCO3) in Ba Ria-Vung Tau Province.

The project in the southern province is the first GT13E2 MXL2 gas turbine upgrade order in Asia of the company after it acquired Alstom’s Power & Grid businesses.

As part of GE’s recent acquisition of Alstom’s Power & Grid businesses, GE’s Power Services integrated a number of Alstom generating technologies into its portfolio, including the GT13E2 turbine, as well as the MXL2 upgrade package. GE also assumed responsibility for a portfolio of Alstom power plant services contracts, including a long-term service agreement for the Phu My power complex

Dinh Quoc Lam, president and CEO of EVNGENCO3, said in a statement that the corporation values the proven performance of utilizing the GT13E2 gas turbine technology and is cooperating with GE on MXL2 service upgrade solutions to achieve its operational goals.

The upgrades are expected to deliver a combined-cycle efficiency increase of 1%, resulting in fuel saving of almost 2% and reduced CO2 emissions. Power output will rise by 50 megawatts (MW) and gas turbine inspection intervals will extend to 48,000 equivalent operating hours to reduce maintenance and repair expenses, reducing plant costs and improving profitability.

Paul McElhinney, president and CEO of GE’s Power Services business, said in the statement that with the acquisition of Alstom’s power generation technology and services capabilities, the business is now able to provide power plant operators with an even greater range of hardware and software solutions to reduce their fuel and equipment lifecycle costs and strengthen their competitiveness.

“With Vietnam’s energy demand rising by more than 10% annually, the additional 50 MW this project brings will help ease national power shortages, particularly for the southern part of Vietnam,” McElhinney said.

The GT13E2 MXL2 upgrade uses Alstom’s F-class turbine blading technology to increase efficiency and extend turbine lifetime. Improved turbine sealing minimizes losses, while advanced cooling technologies enable extension of the service interval.

The Phu My upgrade project also supports GE’s focus on Vietnam’s energy sector as part of its Asia Pacific growth strategy.

In September this year, GE announced that it will provide two high-efficiency, supercritical steam turbines and generators for PetroVietnam’s Long Phu 1 coal-fired power plant.

Steel imports from China surge in Jan-Oct

January-October steel imports from China amounted to 7.7 million tons, up a staggering 62.1% against the same period a year earlier, according to the General Department of Customs.

This import volume accounted for 61% of Vietnam’s total in the period, show statistics of the department. The period saw steel imports from China growing month after month. For instance, Vietnam imported 965,000 tons of steel from China last month, rising by 25.5% against the previous month and making up 65.2% of 1.48 million tons of steel worth US$577 million Vietnam imported in the month.

According to the customs, more than 12.6 million tons of steel was imported into Vietnam between January and October, a 34% year-on-year rise.

Ho Nghia Dung, chairman of the Vietnam Steel Association (VSA), told the Daily that local steel makers have felt the pinch of the huge steel influx from China.

Sitting on huge steel stockpiles, China exports around 20 million tons of steel to Southeast Asian markets a year, with Vietnam accounting for 30%.

“Management agencies are preparing trade defense measures and technical barriers to prevent massive steel imports from China after VSA has many times requested them to find solutions,” Dung said.

Regarding steel consumption, Dung said sales of construction steel this year are forecast to edge up 20% to seven million tons, buoyed partly by a steady recovery of the property market.

However, some domestic steel mills had to scale down production due to fierce competition triggered by the steel ingot price fall on global markets and huge imports from China.

Late last month, Deputy Prime Minister Hoang Trung Hai told the Ministry of Industry and Trade to instruct the steel association and makers to prepare trade defense measures if imports of Chinese steel containing chromium shot up and sparked unhealthy competition.

To prevent trade fraud and ensure healthy competition, Hai assigned the ministry to coordinate with relevant units to inspect steel import activity and report results to the Government by the end of November.

Imported construction steel labeled as alloy steel to evade tax has taken its toll on domestic steel makers and State budget collections. Domestic enterprises said they would suffer losses or face closure if the problem is not solved soon.

In reality, some firms have had to slash production by a third to avoid further losses.

Japanese companies seek to develop projects in Hai Duong

A number of active and technology-driven Japanese companies met with local businesses in northern Hai Duong province on November 27 to seek to establish partnerships for new projects.

The Japanese companies mainly operate in industry, the environment, agriculture, and infrastructure construction. They visited Hai Duong province as part a Japanese investment promotion programme.

Minoru Maki, representative of the Kyushu region’s Agency for Trade and Investment Promotion under the Ministry of Economy , Trade and Industry, said the Japanese companies expect cooperation opportunities in the province.

Hidenori Yasaki, President of Yasaki Company specialising in agricultural products and microbiological liquid fertiliser, said Vietnam has a large agricultural market but paid little attention to safety and food hygiene.

Yasaki is willing to build factories in Vietnam to help Vietnamese consumers access hi-tech and safe products, he said.

Japanese investors have pumped 1.1 billion USD in 60 projects on manufacturing; electronic component assembling; mechanic spare parts; telecommunication equipment; moulding; automobile electric wire and cable in Hai Duong.

The capital figure ranked Japan second out of 24 countries and territories investing in the province.

Japanese companies’ disbursed capital makes up 80 percent of the province’s disbursed capital, the highest rate among foreign investors in the province.

11-month industrial production index up 9.7 percent

The national index of industrial production (IIP) surged 9.7 percent year-on-year in the first 11 months of 2015, according to the General Statistics Office (GSO).

In November alone, the index increased 8.9 percent against the same period last year.

During the period, automobile registered the highest IIP rise of 29.8 percent, followed by television and mobile phone, up 51.1 percent and 38.7 percent, respectively.

Stable hikes were seen in some other products such as leather footwear (18.3 percent), laminated steel (18.2 percent), powder milk (17.3 percent), and fresh milk (15 percent).

The northern province of Thai Nguyen took the lead with an IIP rise of 107.3 percent, followed by the central province of Quang Nam (34.6 percent) and the northern port city of Hai Phong (16.5 percent).

In the two biggest cities of Hanoi and Ho Chi Minh City, the industrial production index expanded by 7.9 percent and 7.7 percent, respectively.

As of November 1, the inventory index of the manufacturing and processing industry increased 9.7 percent compared to the same period last year, GSO said.

Meanwhile, the number of labourers working for industrial enterprises surged 6.3 percent year-on-year.

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