Ministry greenlights cashew project

The Ministry of Agriculture and Rural Development has approved a programme to sustainably grow the cashew industry, which targets output rising to 400,000 tonnes by the end of this decade from 286,000 tonnes now.

It also has a target of doubling the ratio of fully processed nuts to 20 per cent and processing more cashew shell and wood to add value.

Besides, domestic cashew consumption is expected to account for half of the total output, up from around 10 per cent now.

The programme also seeks to review and tweak cashew zoning plans; replace aged trees; and develop intercropping models, high-quality seedlings, and advanced farming techniques.

The four provinces of Binh Phuoc, Dong Nai, Ba Ria-Vung Tau, and Binh Thuan will remain the main cashew cultivation areas, with a combined growing area of 200,000ha compared to the country's total cultivation area of 300,00ha.

To achieve all these targets, the industry will take measures like modernising technologies and equipment to expand processing capacity, improve quality, diversify, and ensure hygiene and food safety.

The Government will continue to invest in developing high-quality strains that are resistant to diseases and climate change.

More research will be undertaken to increase mechanisation in caring for, harvesting and processing cashew, and agricultural extension activities will be stepped up.

The industry will step up training to meet its future needs.

Trade promotion will be strengthened both at home and abroad to enable the industry to meet the export target of more than US$2.5 billion by 2020 as well as increase consumption in the domestic market.

The industry will step up co-operation with international organisations for developing new strains and farming and processing techniques.

According to the Crop Production Department, the area under cashew has reduced significantly to around 310,000ha now.

The industry expects exports this year to be around 300,000 tonnes worth $2 billion, a record figure, according to the Viet Nam Cashew Association.

Hoa Binh gets involved in Metro Line No. 2 project

Hoa Binh Construction and Real Estate Corporation (Hoa Binh) has clinched a contract with the Management Authority for Urban Railways (MAUR) to participate in construction of Metro Line No.2 in HCMC.

Hoa Binh will be the main contractor for the architectural structure, mechanical and electrical facilities and technical infrastructure of a package related to the management building and auxiliary works at Tham Luong Station.

The VND173 billion package as part of the Metro Line No.2 project will be implemented within a year or so. The package is funded by an Asian Development Bank (ADB) loan of US$40 million, according to MAUR.

The building will be used for operation and management of track and help MAUR and consultants set up and install equipment for the metro project.

This metro line will stretch nearly 20 kilometers and connect Thu Thiem New Urban Area in District 2 and Tay Ninh Coach Station in neighboring Tay Ninh Province. In the first phase, the city will develop an 11-km section running from Ben Thanh Market in the downtown area to Tham Luong Depot in District 12, including 9.3 km of underground track.

The project was originally forecast to need US$1.37 billion, including US$540 million from ADB, US$313 million from German development bank KfW and US$195 million from the European Investment Bank (EIB). The rest will be sourced from Vietnam’s State budget.

However, the city said in a report submitted to the Ministry of Transport in September that the cost of Metro Line No.2 should be revised up to US$2.1 billion due to inflation and design change.

The development of quality varieties remains key to restructuring the nation's rice sector, officials said yesterday.

Speaking at a conference held by the Institute of Policy and Strategy for Agriculture and Rural Development, Tran Xuan Dinh, deputy head of the Ministry of Agriculture and Rural Development's Cultivation Department, said the rice sector was facing fierce competition from emerging markets and major efforts were needed to boost quality of Viet Nam's rice products.

According to the Cultivation Department, about 365 rice varieties are currently licensed for production in Viet Nam. Of these, just 15 per cent of the rice varieties are supplied by companies, institutes and research centers while many others are used by farmers putting aside seeds after each harvest season. The department claimed that this results in low rice quality.

Agriculture experts at the conference also estimated that just 10 per cent of rice varieties grown in the Mekong Delta go through quality inspections before being sold in the market.

There was general agreement at the conference that better ways must be found to assist farmers access quality rice varieties developed by institutes and researchers.

A report said that of 50 new rice varieties recently developed by the Cuu Long Delta Rice Research Institute, only seven have been given to firms and distributed to farmers.

Tu Anh, deputy director of Phu Tho Province's Department of Agriculture and Rural Development, said relevant government agencies should identify the types of rice varieties can be given more resources for expanded cultivation.

Restructuring plans for the rice sector should also identify rice varieties suitable for different regions in the country, he said.

Dinh agreed, saying that the ministry was also looking at different approaches to restructuring the rice sector. One approach under consideration was to have the Mekong Delta focus on rice varieties for export, while the Northern and Central regions prioritise domestic market needs, he said.

Nguyen Van Vuong, another official of the Cultivation Department, said most rice varieties that Viet Nam developed tend to focus on "easy markets", due to a lack of human resources and investment in technology.

Le Hong Nhu from the Association of Bonsai and Ornamental Plants Association said there must be a clear criteria set for assessing rice varieties earmarked for expanded cultivation or elimination.

Associate Professor Le Vinh Thao, formerly with the Viet Nam Institute of Agricultural Science, stressed the need for using rice varieties that need less water and other inputs like fertilizers. He said this is needed to ensure sustainable quality of Viet Nam's rice products.

Mekong Delta eyes higher, better yields

The Cuu Long (Mekong) Delta will not expand its agricultural area but will instead focus on improving yield and quality, Deputy Minister of Agriculture and Rural Development Tran Thanh Nam has said.

Speaking at a seminar in Can Tho on Wednesday, he said the region would bolster co-operation between farmers and companies to develop large-scale rice fields to increase farmers' earnings.

The country's rice granary is expected to produce around 25 million tonnes of paddy this year, up 500,000 tonnes from last year, according to the Southwest Region Steering Committee.

The region's authorities underlined the important role played by companies and co-operatives in restructuring agriculture.

Le Minh Hoan, secretary of the Dong Thap Province Party Committee, said many kinds of agricultural co-operatives are operating effectively in his province.

They tie up with companies to buy agricultural inputs and guarantee outlets for their members, he said.

"Co-operatives have helped reduce production costs and increase profits for farmers."

Many rice companies in Dong Thap have invested in agriculture in the form of building warehouses for storing rice, dryers and others.

The Southern Food Corporation has helped agricultural co-operatives in Dong Thap train their managers to improve capacity and cooperation among agricultural co-operatives and with companies.

Participants at the seminar said there is little co-operation between provinces in the delta.

Deputy Prime Minister Vu Van Ninh called on the delta provinces to restructure agriculture simultaneously with an ongoing central programme to make over rural areas, saying this would help increase the value of agricultural production.

To restructure agriculture, the delta's provinces and Can Tho city should improve the newer co-operation models between farmers and co-operatives and between farmers and companies, he said.

They should adopt advanced technologies to improve yields and cope with climate change, he said.

He called on the Ministry of Planning and Investment to release a list of infrastructure projects in the delta and encourage investment in them.

Policies for linking up the region should be in place soon, he said.

The policies, being drafted by the Southwest Region Steering Committee and the Ministry of Planning and Investment, will seek further development of the region's transportation, irrigation and infrastructure.

The regional links will focus on production, processing and sale of agricultural and fisheries products, creating common brand names and improving the quality of key products.

It will also focus on protecting the environment and responding to climate change and natural disasters.

The delta will increase the area of large-scale rice fields to 200,000ha next year, 66,000ha more than now, according to the Southwest Region Steering Committee.

An Giang, Dong Thap, and Can Tho alone will account for 110,000ha.

Vietnamese businesses are not fully aware of technical barriers to trade, said Duong Dinh Giam, general director of the Industrial Policy and Research Institute, at a seminar yesterday in HCM City.

In the international economic integration process, standardisation in general and technical barriers to trade more specifically have become increasingly important, Giam said.

A common trend in international trade is goods lacking import tariffs. However, countries without import tariffs will use other, non-tariff measures to protect domestic production against fierce competition from imported goods, Giam said.

Nguyen Binh Giang from the Import and Export Department under the Ministry of Industry and Trade said the basic solution for businesses is to accelerate market research and promote trade. They must build a long-term strategy to make exported products higher-quality and increase their competitiveness. Moreover, local firms should use more local materials to reduce dependence on foreign suppliers, Giang said.

At the seminar, officials said local firms must raise awareness and disseminate information about technical barriers to trade in Viet Nam's most important export markets, like Japan, the US, Russia, the EU and ASEAN, as Viet Nam becomes more integrated into the global economy.

In addition, the Government should develop programmes to support key export industries, and help them overcome technical barriers to spur export value and effectively penetrate the international market.

SBV warns about fake bank cards

The State Bank of Viet Nam (SBV) has advised its urban and provincial branches and payment service providers nationwide to enhance the inspection and monitoring process for card payments.

The central bank's Document No. 9626/NHNN-TT issued on December 25 provides guidelines for the prevention of payments via fake international bank cards.

The branches and service providers are required to check places that accept card payments, especially those with short-term operations. They must examine the conditions and procedures that govern the operation of these sites that accept card payments, especially for those that have just opened their doors. They must also categorise them to localise risks.

The SBV requires these providers and branches to inform their officers of the methods the criminals use to perpetrate card fraud. The bank requested them to draft a plan to shift to a chip card system to help curb the growing number of card fraud cases. These measures will also limit the risk and losses for both parties involved in card transactions.

The organisations must also place warnings at automatic teller machines (ATMs) and points of sale (POS) to warn their clients to be vigilant against these criminals.

Branches of the central bank must enhance the examination and monitoring procedures of ATMs/POS to ensure the security of the systems. They have been requested to report cases related to the security of card payments.

The warning was issued in response to a recent card fraud incident. The SBV revealed that a Vietnamese businessman had recently founded a company and signed a contract with various banks to accept card payments. The founder then used fake cards on payment card machines to perform international transactions.

Short-term loan rates seen declining further in 2015

Many credit institutions forecast that the interest rates of short-term loans in Vietnamese dong will continue to decline by approximately 1.3 percentage points next year.

This was revealed by a December survey on next year's inflation prospects. The survey was conducted by the State Bank of Viet Nam's Statistics and Forecast Department.

However, 20 per cent of credit institutions believed that the interest rate could increase next year.

SBV Governor Nguyen Van Binh shared in a meeting of the banking sector conducted this week that it would be difficult for the banking industry to maintain the current interest rates next year. The economy remains on the road to recovery, while the economic growth targets set for 2015 are higher than this year, which will boost credit demand.

The lending interest rate this year has declined by approximately two percentage points, which brings the rate to the level attained during the 2005–06 period.

The survey revealed that the exchange rate of the dong and dollar in the inter-bank market is forecast to increase by an average of 1.6 per cent next year.

The survey also showed that many credit institutions anticipate that the inflation in December next year will increase by 4.77 per cent against the same period in 2014. This expected rate is lower than the government's five per cent target set for 2015.

The institutions shared that the price adjustment of the goods managed by the state and the price volatility of goods, including oil, in the world market will be the main causes of inflation next year.

A change in monetary and fiscal policies as well as an imbalance in demand and supply are also forecast to affect next year's inflation.

Credit institutions also anticipated that GDP growth next year will reach 5.86 per cent, which is 0.34 per cent lower than the National Assembly's 6.2 per cent target.

Hanoi trade deficit tops $13 billion in 2014

The capital recorded a trade deficit of approximately US$13.8 billion in 2014, according to the municipal Statistics Office.

Ha Noi generated $11.07 billion from exports, up 11.7 per cent year-on-year, while import value rose 4.3 per cent to $24.45 billion.

In September alone, the city exported $1.02 billion worth of goods, increasing 5.8 per cent month-on-month. It spent $2.32 billion to import goods, a rise of 13.7 per cent that resulted in a trade deficit of $1.3 billion.

The capital's key export staples this year were computer spare parts and peripherals with turnover of $1.6 billion, up 56.6 per cent; garments and textiles with $1.58 billion, up 20.7 per cent and agricultural products with $1.13 billion, up 17 per cent.  

Other items recording encouraging export value included petroleum ($815 million), electronics ($443 million), glass products ($331 million), coffee ($288 million), footwear ($249 million) and handicrafts ($192 million).

The city's major export outlets included the US, Japan and China, which together received 38.4 per cent of exports.

The city mainly imported petroleum with $5.45 billion, steel and iron with $1.18 billion, plastic with $772 billion, fertiliser with $342 million and chemicals with $333 million.

The Ministry of Industry and Trade's Import-Export Department revealed that Ha Noi had the country's biggest trade deficit in 2013 with $13.5 billion, five times higher than southern Ba Ria-Vung Tau Province with $2.9 billion.

Last year, the capital city posted export turnover of $9.9 billion and imported $23.4 billion worth of goods. —

ETFs open new opportunities to help investors handle risk

Opportunities to invest in exchange-traded funds (ETFs) were introduced to investors yesterday by the Ha Noi Stock Exchange and FPT Securities Company.

"ETFs have arisen as an option for many investors due to its ability to spread out risk, ensure transparency, provide diversified portfolios and offer a low transaction cost," noted the exchange's deputy general director, Nguyen Anh Phong.

Meanwhile, FPT Securities Chief Executive Officer Nguyen Diep Tung said that the company would develop new products and improve its overall technological system to support the investors in trading.

"This tool of investment is still new to Vietnamese investors," disclosed the company's head of brokerage, Nguyen Van Dung. He added that ETF certificates were typically purchased mainly by organisations.

However, domestic products, such as ETFs, need to be created to enhance the professional standard of the market. The release of the VN30 Index, the HNX30 Index and a series of sector indexes paved the way for ETFs.

Two Vietnamese ETFs, the VFMVN30 and SSIAMHNX30, are currently simulating the VN30 Index and HNX30 Index.

VFMVN30 was listed on the Ha Noi Stock Exchange on October 6. However, investors have not shown much interest in it. The certificate plunged to 12.5 per cent as of Thursday, according to data compiled by the Securities Investment newspaper. Its average daily traded volume reached only 156,000 units.

The decline may be the reason for calls from securities watchdogs to hold ETF training sessions for investors.

The SSIAMHNX30, managed by SSI Asset Management, will officially list fund certificates on the Ha Noi Stock Exchange next Monday.

VietABank modernises information system

VietABank has invested more than US$2 million to upgrade its new generation data centre and e-banking service.

It will apply virtualisation technology and cloud computing in the data centre. It will also add new facilities to its e-banking service.

Thai Nguyen Hoang Nha, the bank's chief information officer, disclosed that 95 per cent of its applications were virtualised after the centre's upgrade. Prior to the upgrade, only 10 per cent of the applications were virtualised. "The virtualisation technology application helps the bank's IT division enhance management and system operation," he shared.

Nha said the high-tech e-banking service would offer fast and interactive facilities to customers.

International enterprises, including VMWARE, EMC, CISCO and HP, have provided high-end technology solutions for the centre's upgrade. The solutions help the bank decrease investment costs and the system's operational expenditure, resolve numerous transactions and ensure its readiness for risk responses.

Local firm launches budget smartphone

Masscom Viet Nam last Saturday unveiled a new budget smartphone targeted at customers aged between 16 and 35.

The phone, which has a five-inch screen, 13-MP camera and is just 6.6-mm thick, is an optimal choice for consumers who are looking for an affordable super smartphone that also has key features, the Vietnamese company said.

The smartphone is powered by Android™ 4.4 KitKat, the latest version of the world's most popular smartphone operating system, and has stunning graphical performance, fast page transitions and an upgraded Google Now service, featuring contextual search.

Priced at VND3 million (US$140), the aluminium uni-body phone has a 1.3-GHz chipset, 1GB RAM and 16GB ROM.

The Ha Noi-based company said that the new phone will be available from December 30. Buyers can order it online at www.massgo.vn with free shipment within Viet Nam.

SMEs backbone of Ha Noi's economy

Small and medium-sized enterprises (SMEs) account for over 95 per cent of businesses in Ha Noi and provide most jobs in the city, said Mac Quoc Anh, vice chairman and general secretary of the Ha Noi Small and Medium-Sized Enterprises Association.

Speaking at the 2014 Business Night in Ha Noi on Thursday, Anh also said entrepreneurs were responsible for producing more than 38.9 per cent of the city's gross domestic product (GDP), adding that SMEs were instrumental to meeting the challenges posed by regional and global integration.

On the occasion, municipal leaders granted Labour Medals and certificates of merit on behalf of the Prime Minister to individuals and collectives in Ha Noi for their outstanding achievements in business and social activities.

Viet Nam enjoys trade surplus with Chile

Two-way trade between Viet Nam and Chile surpassed $791.9 million in the first 11 months of this year with the balance of trade in favour of the Southeast Asian nation.

During the January-November period, Viet Nam's exports to Chile were valued at $465.6 million while imports from the South American country were $326.4 million.

Nguyen Thanh Quang, a representative from the Chilean Consulate General's Trade Office in HCM City, said Viet Nam's main exports were footwear, apparel, coffee, plastic products, vegetable and fruits and wooden furniture.

Chile had advantages in mining, metallurgy, fishing, wine making, and food processing which turned out products in line with Viet Nam's demand, he added.

According to Quang, Vietnamese goods could enter other Latin American markets through Chile.

Lam Dong moves to draw investment

The Central Highlands province of Lam Dong organised a trade promotion conference on December 25 with the goal of drawing more investors to the locality and the region at large.

The conference brought together 200 domestic and foreign businesses, which reached 16 deals covering various industries.

Lam Dong, DaK Lak, Dak Nong, Gia Lai and Kon Tum form the Central Highlands region with a population of over 5.4 million people, 25.7 per cent of whom are ethnic minorities.

In the first nine months of 2014, the Central Highlands attracted 177 FDI projects with total registered capital of $926 million, 66 per cent of which went to Lam Dong.

Nam Tien Phong project granted investment licence

The USD$128 million project for the investment, construction and operations of the infrastructure for an industrial zone and Nam Tien Phong port was granted an investment licence on December 24.

Quang Ninh's People's Committee Chairman Nguyen Van Doc hands the investment licence to representative of the Tien Phong Industrial Zone Joint stock company. - Photo quangninh.gov.vn

The project will begin construction in 2015 in Quang Yen town, northern Quang Ninh city.

The wholly foreign-invested industrial zone and port is a venture investment by the Tien Phong Industrial Zone Joint stock company. It is a joint undertaking with Hong Kong's Rent A Port Company, Infra Asia Investment Limited and Belgium's International Port Engineering and Management Company.  

The project will cover an area of 487ha and be equipped with a modern infrastructure.

Provincial People's Committee Chairman Nguyen Van Doc asked authorities during the license granting ceremony on Tuesday to support the investor in completing land clearance procedures and installation of lighting, water and transportation systems, to make it easier to begin construction next year.

Card payment device for mobile phones launched

Consumers now can make payments more conveniently thanks to a new device called MPOS connecting to mobile phones and tablets with Internet connectivity.

The new device was introduced by MPOS Vietnam Technology Joint Stock Company, the Vietnam Bank for Industry and Trade (VietinBank) and the HCMC Department of Industry and Trade at a workshop on card payment service via mobile devices in HCMC on December 23.

MPOS functions like a normal point of sale (POS), but it is smaller and can connect to cell phones and tablets. MPOS matches operating systems such as iOS, Android and Windows Phone. It allows clients to use MasterCard, Visa, JCB and ATM issued by banks in Vietnam to make payments.

MPOS is suitable for small enterprises, stores and family-run businesses thanks to low prices, at VND2.2 million (US$103) for a MPOS linking headphones and VND2.4 million (US$112) for the one connecting via Bluetooth. The prices are much lower than VND5 million (US$235) for a wired POS and VND10 million (US$470) for a wireless device.

Do Van Khoi, general director of MPOS Vietnam Technology, which supplies the new device, said the firm had sold over 2,000 MPOSs to VietinBank and Saigon Thuong Tin Commercial Bank (Sacombank).

In Vietnam, banks have issued around 70 million cards of different types and 105,000 of them are accepted at almost all POSs. According to the State Bank of Vietnam, the country will have 250,000 card payment devices by 2015.

Mekong Delta in dire need of new zoning plan

Experts have stressed the need to revise and adjust the master zoning plan for the Mekong Delta to facilitate the region to achieve better socio-economic development and better cope with climate change.

Speaking at an international seminar on planning for the Mekong Delta until 2030 with a vision towards 2050 in Can Tho City on Monday, Deputy Minister of Construction Phan Thi My Linh said the 2009 zoning plan for the delta is no longer appropriate for the region, so it is important to adjust it.

Architect Nguyen Viet Thang from the Southern Institute for Construction Planning emphasized the need to change the current zoning plan to improve and promote the delta’s important role and development in line with the country’s green growth strategies and its adaptation to climate change and rising sea levels as the Mekong Delta will be one of the deltas most affected by global warming.

Besides, a new zoning plan is expected to help resolve the problems related to development in the region.

“We will consider all the ideas and suggestions for adjusting the zoning plan and propose proper solutions to solve the problems,” Thang said.

Bruno De Meuider from Belgium’s University of Leuven said new urban areas in the delta currently are small and there is a big development gap between urban and rural areas in the region. Therefore, the zoning plan needs to be changed.

He also pointed out that localities in the delta have been in a race to develop industrial parks to attract investors but occupancy at these industrial parks is as low as 30-40%. The scattering of resources and investments has constrained economic development in the region.

He urged localities in the delta to join forces and concentrate resources to drive growth in the whole region.

As the Mekong Delta is one of the world’s important deltas in terms of biodiversity and potential for development, a proper zoning plan will help it make full use of its advantages.

Martijin Van De Groep, chief advisor to the Mekong Delta Plan under the Netherland-based firm Royal Haskoning, suggested the new zoning plan should include targets for development of the marine economy in the delta based on its strong advantage in this field.

He proposed planting trees instead of building cement embankments along the river banks of the Mekong Delta to minimize impacts of climate change and rising sea levels and aid shrimp farming under the shadow of these trees.  

Experts at the seminar also emphasized it is important to establish a strong linkage between provinces in the region to achieve sustainable development in the Mekong Delta, the country’s biggest rice growing area.

Emerging technologies at the forefront of food and beverage sector

Despite the global economic downturn over recent years, Vietnam’s food and beverage sector has maintained an above average annual growth rate – the highest level in Asia, most notably in Southeast Asia.

This has in turn provided the incentive for world retail giant’s to infuse billions of US dollars into Vietnam’s economy for manufacturing facilities and other infrastructure, which in turns spurs yet more production and economic growth.

Notably there are many who suggest that the food and beverage sector should be developed in tandem with the advancement of the food packaging and equipment industry, which would have a synergistic effect promoting more economic efficiencies for both sectors

Therefore, the food package and equipment industry is now one of the Vietnamese people’s prime concerns. Paper carton production capacity has met just 51% of the demand while the quality of paper materials remains poor.

For the plastics sector, more than 80% of materials which are used to produce plastic packaging, have to be imported from other nations. Material import costs for metal packaging also account for some 80% of production costs.

To deal with these difficult situations most effectively, the International Processing, Filling and Packaging Technology Exhibition and Conference for Vietnam (ProPak Vietnam 2015) has suggested installing the most advanced technologies for the food, beverage and pharmaceutical industry in Vietnam in compliance with international nutrition and food safety standards.

Professor Luu Duan, a representative from the Vietnam Association of Food Science and Technology (VAFoST) said the association would attend the ProPak Vietnam 2015 on April 1, 2015 to learn about the latest in processing technologies towards nutrition and food safety.

The event will also focus on breakthroughs of modern technologies and machines, training and development of human resources for the food industry with a view towards the establishment of the ASEAN Economic Community (AEC) in 2015.

According to many leading experts, although the processing and food package industry has seen bright prospects for development, proper investment for the sector remains limited. At present, the country has around 6,000 processing establishments including over 2,000 farm produce and 570 seafood units.

Notably, some sectors such as seafood, cashew nut and pepper have met the requirements for quality in demanding markets- the US, EU and Japan. Despite these limited achievements, the rate of processing establishments using modern technologies in production is still low.

Due to financial difficulties, these businesses have failed to increase equipment and machinery investment to improve the product value and businesses have a need for more assistance in the processing and packaging fields. To this end, ProPak Vietnam will be organised from March 31 to April 2, 2015 to introduce about the latest technologies from Vietnam and nations across the globe.

Mr. BT Tee, Deputy Chief Representative of Singapore Exhibition Services in Vietnam says there are huge opportunities for producers of food processing and consumption and pharmaceuticals to expand market segments of middle income earners.

To achieve these goals, he emphasised the need to raise local producers’ awareness about food safety and quality control procedures, international standards and certificates. Accordingly, the upcoming ProPak Vietnam 2015 will exhibit modern technologies from a wide variety of countries.

The Ministry of Finance and the Ministry of Industry and Trade have jointly launched their national single window system.

Speaking at the launching event in Hanoi on December 25, Deputy Prime Minister and Head of the National Steering Committee on Single Window System, Vu Van Ninh, asked relevant ministries to build up cooperative mechanism to ensure the system’s success.

The Deputy Prime Minister described national single window system as an important component of the government’s administrative reform.

“All ministries need to get prepared and complete their joining to the single window system 6 months ahead of schedule to meet domestic economic requirements.”, he said.

Ministries of Agricultural and Rural Development, Health, Natural Resources and the Environment will be ready to join the ASEAN single window system by next June. The remaining ministries will join the system by 2016, enabling connectivity of administrative procedures in imports and exports within the ASEAN.

Vietnam trade deficit with Thailand widens as imports climb

Vietnam’s trade deficit with Thailand broadened by US$3.50 billion in the 10 months leading up to November as the country’s imports continued to outpace exports, according to the most recent statistics from Vietnam Customs.

Vietnam’s imports for the 10 month period jumped 12.2% on-year to US$6.44 billion outpacing exports which grew just 10.5% on-year to US$2.94 billion.

Telephones, mobile phones and parts imports notched a 75.3% on-year increase, grossing US$692 million for the period. Meanwhile, Vietnam’s key exports were machines, steel, iron, computers, electronics and components.

However, the trade volume with Thailand remains nominal in relation to the total turnover of each nation, the customs office reports. Last year the two-way trade volume with Thailand accounted for just 3.5% of the nation’s total import-export turnover.

Vietnam investments in Cambodia to surge

Vietnamese enterprises are expected to increase their investment pledges in Cambodia to US$4-4.2 billion next year and US$6 billion by 2020.

The figures were estimated by the Association of Vietnamese Investors in Cambodia (AVIC) in a statement released on December 25 on the occasion of Vietnamese State President Truong Tan Sang’s official visit to Cambodia.

The association’s chairman Tran Bac Ha said as of last year, Vietnamese firms had pledged some US$3 billion for their projects in the neighboring country.

More than 50 large projects have come online, including the rubber farms of Hoang Anh Gia Lai Group and Vietnam Rubber Group, Five Stars International Fertilizer Company, Cho Ray-Phnom Penh Hospital, sugarcane refining complex, and ethanol and thermal power plants of Kamdhenu Ventures Cambodia Limited (KVCL).

The remaining projects are in the financial, aviation, and telecommunications sectors.

At the meeting with President Sang on December 25, Ha suggested the two countries review the bilateral economic agreements signed between the two governments to find ways to facilitate the operations of the association’s member firms in Cambodia.

The two governments should sign an agreement on double taxation avoidance and swiftly complete related procedures so that the Investment Promotion and Protection Agreement between Cambodia and Vietnam and a revision protocol for this agreement will come into force soon.

According to AVIC, bilateral trade between the two countries grew 30% annually in 2009-2013 on average and the association put two-way trade this year at more than US$3.5 billion.

Economy forecast to return to high-growth path next year

Vietnam’s economy could get back to the high-growth path next year if it does not experience more internal and external shocks, according to Vo Hung Dung, director of the Vietnam Chamber of Commerce and Industry (VCCI) Can Tho.

“Economic growth has become stable this year when the National Assembly (NA) passed a number of important revised laws on business and tax. There have been positive changes on the world’s economy, especially when oil prices tumble,” Dung told a seminar on business opportunities and challenges next year in Tien Giang Province on Tuesday.

Dung named three foundations to project better economic growth for Vietnam. Firstly, the country’s economy has grown higher this year with gross domestic product (GDP) expanding 5.9% as announced by the Ministry of Planning and Investment.

“The growth of 5.9% is very special. Between 1985 and 2014, the country suffered an economic downturn when the GDP growth was below 6% and then recovered when the growth rate exceeded 6%.”

During the 1985-1990 period, it took six years for the nation’s economy and one year more in 1991 to rebound and accelerate, and the same thing happened in 2008-2013. Therefore, after this year, the economy will be back to strong growth, he predicted.

Secondly, inflation has been curbed at a low level.

When inflation is higher than 10%, economic growth would slow, and even the inflation rate of 8-9% would erode economic growth, Dung said.

Finally, it is easier for businesses to take out bank loans as interest rates are getting lower.

Despite some enterprises’ complaints about difficult borrowings, a recent survey conducted by VCCI Can Tho showed that bank loans have been made easily accessible this year.

Dung said the stable exchange rate between the U.S. dollar and Vietnam dong also supports companies’ exports and the revised investment and enterprise laws have helped boost investor confidence.

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