Safe, high-quality agricultural production programme launched

A programme designed to encourage stronger cooperation between farmers, cooperatives, and enterprises to develop safe and transparent agricultural supply chains was launched in Ho Chi Minh City on December 27.

Through the programme, the Ministry of Agriculture and Rural Development (MARD) hopes to bring together producers and consumers to jointly develop a clean agriculture with safe, high-quality and highly competitive products.

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said boosting the linkage between production and consumption will help businesses get easier access to farming households, thereby forming safe agricultural product supply chains.

On this occasion, MARD also coordinated with relevant agencies to organise a workshop on the situation and solutions to develop production and consumption models for safe and high-quality farm produce. 

A fair introducing safe products of agricultural cooperatives was also held at Co.opmart Foodcosa.

Vietnam records positive changes in FDI attraction

Foreign direct investment (FDI) attraction in recent years has seen a halt, but along with that there is also a positive sign in relation to the minimal difference between FDI registered and disbursed capital.

Though 2016 is still not over, experts forecast that FDI disbursement for the whole year will surpass that in 2015, making it the third consecutive increase year on year.

According to Chairperson Nguyen Mai of Vietnam's Association of Foreign Invested Enterprises, amidst reduced FDI registered capital, it is a good sign showing that FDI capital has brought about more practical benefits.

This year’s FDI registered capital will not reach the set target and is expected to only reach a mere US$20-21 billion, thus not surpassing the figure of US$24 billion recorded in 2015. However, this figure should not be a major concern as it has always only remained a minor commitment.

If investors only commit to allocating money, then the figure is only on paper, having little significance to the economy. In reality, registered capital in some years has even reached US$72 billion but it was far away from the actual FDI disbursement.

For that reason, attracting “virtual” numbers has resulted in the fact that FDI registered capital to date has been up to US$300 billion but disbursement has only stood at US$160 billion.

Looking back over several years, FDI flows into Vietnam have seen a halt but also recorded positive changes as there has only been a minimal difference between registered and disbursed capital. In particular, FDI disbursement has increased strongly since 2014 and continuously maintained this trend since then.

It means that investors have kick-started their projects immediately when they received licences from local authorities. It also demonstrates tight management from the State administration over appraisal and approval of FDI projects.

Previously, FDI disbursement only fluctuated around the benchmark of US$11-12 billion. In 2014, the figure was at a high level of US$12.5 billion but was still significantly lower than the registered amount of US$22 billion. In 2015, disbursement increased to US$14.5 billion, narrowing the gap against registered capital at US$24.1 billion.

Notably, in the first 11 months of 2016, FDI disbursement reached US$14.3 billion, only US$4 billion less than FDI registered capital, up 8.3% against the same period last year. 

In the last month of 2016, disbursement is expected to increase by US$2 billion, bringing the total up to US$16-17 billion, an increase of 13-14% year on year. The figure for 2017 is forecast to increase by 10% against 2016’s level.

Dang Xuan Quang, Deputy Head of the Foreign Investment Agency under the Ministry of Planning and Investment affirmed that the increased disbursement showed that FDI flows into Vietnam have developed sustainably, even recording breakthroughs.

On the contrary, the halted registered capital proved that the State has shifted attracting FDI flows from quantity to quality, with a focus on hi-tech and clean technologies. To date, the reality has shown that Vietnam has retained investors with long-term investment strategies in the country.

However, according to Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry, the FDI sector has existed as an “oasis.” To facilitate links between the private sector and the FDI sector, it is important to upgrade small and medium sized enterprises.

2017 is forecast to be a difficult year for the business community due to the unstable future of Trans-Pacific Partnership Agreement, the anti-globalisation trend and the approaching Fourth Industrial Revolution. 

Such factors could lead to a reversal in international trade and investment and affect emerging economies with high openness that consider exports and FDI as their main drivers of growth.

In that context, the requirement of pushing institutional renovation, attracting internal forces, facilitating the domestic private sector’s development and connecting the sector with a global value chain and the FDI sector is the key to sustainable development.

Over recent years, Vietnam has achieved success in attracting FDI but failed to create technological spillovers from the FDI sector and forge links between private and FDI sectors. These reasons partially stem from Vietnam’s weak linkage policies and inactiveness from FDI businesses in connecting with domestic ones.

Another issue is the role of the environment in investment projects that has become a costly lesson for not only the State and the society but also for enterprises. The environment and environmental protection are core conditions for sustainable development but such issues also cause concerns for the business community.

After previous environmental incidents, the business community has shown their support to the State’s policies on strengthening environmental protection during development. Enterprises that have violated environmental regulations should be punished with stiffer penalties. The government should also develop measures to realise commitments on ensuring credibility of the business investment environment.

This message is very important and also a source of great pressure, but everyone must follow the law while keeping faith in business and investment as it is a vital requirement for a healthy business environment.

Seminar discusses measures to balance trade with China

More than 100 Vietnamese and Chinese government officials gathered on December 27 in Hanoi for day one of a two-day seminar to discuss measures to balance Vietnam-China trade.

Speaking at the opening, Deputy Prime Minister and Foreign Minister Pham Binh Minh thanked the organizers for holding the conference saying he considered it a good opportunity to re-evaluate and strengthen economic relations.

Mr Minh underscored the fact that Vietnam attaches much importance to fostering a comprehensive strategic partnership between the two countries. He urged participants to use innovative thinking to bring trade into balance.

Deputy PM inspects loss-making plants in Hai Phong

Deputy Prime Minister Vuong Dinh Hue made a fact-finding tour of two loss-making State-owned plants in the northern city of Hai Phong on December 27.

The inspected facilities are run by the National Chemical Group (Vina Chem)’s DAP2 fertilizer company and the Petrovietnam Petrochemical and Textile Fiber Joint Stock Company (PVTEX), a joint venture of the National Oil and Gas Group (PetrolVietnam) and the National Textile and Garment Group (VINATEX).

They are among the 12 unprofitable projects that are required to be tackled as soon as possible by the National Assembly and Prime Minister.

Examinations on infrastructure, technologies, assembly line operation and business performance were carried out, with reports on losses presented by managers of the two plants.

The inspection delegation discussed a number of measures to deal with beforehand issues of the plants and other decisions related to their future operations.

Previously, the Deputy PM, who heads the State steering committee on handling unprofitable trade and industrial projects, also made a fact-finding tour at the Ninh Binh Nitrogen Fertilizer Plant.

In his speech at the first session of the committee on December 20, Hue stressed the goal of basically handling these loss-making projects in 2017 and completing the work by the end of 2018 as instructed by the Party, the National Assembly and the Prime Minister.

Hanoi: Industrial production increases 7.1 percent in 2016

Hanoi enjoyed a 7.1-percent growth in industrial production this year compared to 2015, according to the municipal statistics office.

Industrial production in December expanded by 5.5 percent month on month and 9.9 percent year on year.

In 2016, some processing and manufacturing industries grew faster than the whole industrial sector’s expansion like food processing (up 21 percent from 2015); garment production (20 percent); pharmaceutical, pharmaceutical chemistry and herbal medicine production (30.1 percent), and metal production (12.6 percent).

Meanwhile, several industries contracted such as beverage production (down 2 percent), and chemical and chemical product production (down 7.6 percent). Notably, timber processing along with wood and bamboo product manufacturing nosedived 46.5 percent.

Hanoi recorded a growth rate of 8.03 percent this year – a six-year high. The services sector grew by 8.1 percent while industry-construction and agriculture respectively rose by 8.8 percent and 2.21 percent, data show.

Hanoi signs cooperation deal with 14 northern provinces, cities

Hanoi inked a comprehensive cooperation agreement with 14 provinces and cities in the northern region at a conference held in the capital city on December 27.

The pact covers a wide range of fields, including investment promotion, trade, tourism, environment protection, solid waste treatment and water supply.

Chairman of the Hanoi People’s Committee Nguyen Duc Chung urged localities involved to promptly translate their commitments into deed.

Accordingly, they need to build production and distribution chains of farm produce to enhance food safety across the region, with each participating locality responsible for their own products serving inter-provincial trade transactions.

Hanoi is committed to creating policies to support producers of safe agricultural products in a bid to form connections from fields to markets.

The network will help businesses have more control over their production and markets as well as achieve sustainable growth.

Hanoi is also willing to take the lead in removing difficulties and completing policies to assist enterprises in accessing information, building trademarks, boosting the production and trade of domestically made goods, particularly for the upcoming lunar New Year holiday.

Meanwhile, the organisation of tourism exhibitions, seminars and fairs is important for the northern localities to promote their images.

Hanoi requested each of its northern partners to take turns holding cultural events at the local Hoan Kiem pedestrian road every month.

On the occasion, the Chairman of the Hai Phong city People’s Committee was voted as chairman of the council of the northern key economic zone for the 2017 – 2018 tenure.

Fifteen parties of the cooperation pact are Hanoi, Hai Phong, Quang Ninh, Bac Ninh, Hai Duong, Hung Yen, Vinh Phuc, Ha Nam, Nam Dinh, Ninh Binh, Thai Binh, Hoa Binh, Phu Tho, Thai Nguyen and Bac Giang. 

Power customer satisfaction index continues to rise

The Electricity of Vietnam (EVN)’s Northern Power Corporation’s customer satisfaction index reached 7.52 points in 2016, up 0.42 point from last year.

The index is the average point of seven factors - awareness of electricity price, electricity bill, information provision for customers, electricity supply, customer services, business image and social consensus – as a result of the survey on 27 member companies of the EVNNPC.

Nguyen Tan Loc, EVN Deputy General Director, said points given to 26 out of 27 companies in the survey this year are over 7, reflecting great efforts by EVNNPC and its member companies.

EVNNPC Deputy General Director Ho Manh Tuan, from now to 2020, the company will continue ensuring stable electricity supply to achieve a higher customer satisfaction index.

He also asked EVNNPC’s member companies to study carefully detailed assessment reports on each factor measuring customer satisfaction in each locality to draw up solutions to improve the index.

Trade turns thin ahead of holiday

The VN-Index went down 0.42% at 664.15 points on December 22 on sluggish trade as investors took profit in the run up to the holiday season.

Losers outnumbered gainers by 1.5 to 1 on the HCMC exchange. Stock traders changed hands 94.9 million shares worth a combined VND2.03 trillion (US$91.4 million), down sharply versus Wednesday. Matched volume stood at 86.3 million shares worth VND1.7 trillion.

According to Dau tu Chung khoan newspaper, the index briefly touched 670 points in the morning session, buoyed by large caps VNM, SAB and MSN.

VNM erased earlier gains and fell into negative territory at the close, so did many other stocks. Therefore, the VN-Index ended down despite a sharp increase of brewery SAB.

The brewery edged up 1.1% at VND203,000 a share for a second session. Meanwhile, VNM plunged to an intraday low of VND123,100 a share with 1.43 million shares traded, including foreign investors’ net sales of 530,000 shares.   

Steelmakers, which rose sharply in the previous session, closed mixed as HPG, HSG and POM leapt while NKG, TLH and VIS contracted. HPG ranked third by volume on the HCMC bourse with 6.13 million shares changing hands, after HQC with 7.07 million shares and ITA with 6.9 million shares.

Blue chip GAS plummeted 2.3%, BVH skidded 1.6% and BID declined 2.01%, thus hindering a market rally and causing the VN-Index to fall below the 665-point level. Besides, numerous speculative stocks performed poorly.

The HNX-Index of the Hanoi exchange on December 22 slid 0.57% at 79.79 points with 80 advancers and 98 losers.

There were 42.9 million shares worth a total of VND426.2 billion traded, up 20% from the session earlier. PSI reported the biggest trading volume on the northern bourse with 4.04 million shares, followed by SHB with 3.6 million shares and KLF with 3.5 million shares.

Meanwhile, the HCMC exchange saw foreigners’ net sales amounting to VND12.4 billion. These investors sold VNM with VND66 billion, VIC with VND10.9 billion and HPG with VND8.9 billion. They acquired SBT and MSN shares worth VND43.9 billion and VND8.5 billion, respectively.

Foreigners shifted to the buying side on the Hanoi market after one session of net sales. They net bought a mere VND280 million worth of shares, chiefly BVS with VND164 million and IVS with VND144 million. They offloaded VND837 million of BCC and VND370 million of VND. 

Cement grinding station forced to shut down

The HCMC People’s Committee has demanded Ha Tien 1 Cement Joint Stock Company (JSC) to cease operation of its Thu Duc cement grinding station, and relocate it to another location.

The company earlier proposed relocating its Thu Duc cement grinding station to District 9 and scaling up the capacity of its Phu Huu grinding station. However, the city government has turned down the proposal.

In an announcement sent to Ha Tien 1 Cement JSC, the municipal authorities have ordered the company to find a new location to replace the Thu Duc grinding plant in end-2016 in line with the city’s master zoning plan for the construction sector.

The city government has assigned the People’s Committee of Thu Duc District, the Department of Natural Resources and Environment, and the Police Department to closely monitor the operation halt and relocation of the cement grinding station.

The city government has told many production facilities to move out of the city owing to heavy pollution for over 10 years. However, some have failed to relocate, forcing authorities to take strong actions such as cutting power and water supplies.

The cement factory, covering 104 hectares in Thu Duc District, has been asked to relocate since 2003, but to no avail.

As reported by the Department of Natural Resources and Environment, the company earlier sought approval to relocate the facility to Phu Huu Industrial Park in District 9. However, the municipal authorities said no to the proposal, as they raised concerns over the facility’s possible pollution to nearby residential areas.

Economic growth and inflation targets proposed for 2017

The National Advisory Council for Financial and Monetary Policies has proposed the Government set gross domestic product (GDP) growth and inflation targets for next year at 6.7% and 4% respectively at a meeting in Hanoi on Wednesday.

The regular meeting of the fourth quarter chaired by Deputy Prime Minister Vuong Dinh Hue also saw the council suggesting the Government solutions for fiscal and monetary policies to successfully implement the socio-economic development tasks of 2017, boost competitiveness, change the growth model, and restructure the economy.

Members of the council stressed the need next year for restructuring credit institutions, businesses, public investments, budget collections and expenditures associated with ensuring the country’s financial safety, and public service units, according to information posted on the central bank’s website.

The restructuring of those five fields will help cope with the weaknesses of the economy and create momentum for further growth, said the council.

In order to effectively apply the fiscal and monetary policies in the coming time, the council said the Government should carry out the policies in line with the medium-term public investment plan and the annual financial plan, focusing on restructuring budget spending and improving the efficiencies of public investments and public expenditures.

As for monetary policy, the central bank is asked to continue being cautious but flexible.

It is suggested to give priority to realizing the macroeconomic stability target, bolstering public confidence in the domestic currency, closely combining fiscal and monetary policies, and keeping interest rates stable.

As for this year’s results, the council said GDP growth may be lower than the target of 6.7% due to the slowdown in agriculture and mining.

However, the motivation for economic growth is still maintained and the country can reach growth of 6.3-6.5%.

Regarding the financial target, the country can realize the budget revenue collection targets assigned by the National Assembly at both central and local levels.

Tech trader to open 350 food stores next year

Mobile World Investment Corp. (MWG), better known as The Gioi Di Dong which retails mobile devices and other electronic items, is looking to expand its convenience store chain Bach Hoa Xanh (green grocery) by opening some 350 food stores next year.

MWG’s general director Tran Kinh Doanh told the Daily that the new stores will mainly be located in Tan Phu and Binh Tan districts of HCMC. The corporation will also run a distribution center of fresh products to supply these stores.

He said MWG will continue streamlining the model and improving governance and operation of Bach Hoa Xanh to boost revenue by 10 times over the current VND2.5 trillion (US$110 million). MWG will add more new stores nationwide by early- or mid-2018 if the existing outlets perform well.

Bach Hoa Xanh, officially launched in October 2015, is a food store chain whose model is similar to those of Co.op Food and Satrafoods.

There are 30-50 Bach Hoa Xanh outlets operating on a trial basis with total capital of VND20-50 billion in the 2015-2016 period.

As of December 22, Doanh said, The Gioi Di Dong had launched 50 green grocery stores, with total investment capital of less than VND50 billion (US$2.2 million), as planned.

They are situated in three wards of Binh Tan District, with each gaining average turnover of VND1 billion (US$43,945) per month.

Doanh said overall sales of Bach Hoa Xanh are still modest, compared to the corporation’s total revenue, but beyond initial expectations. However, this chain has yet to break even.

Ministries want guidelines for conditional business regulations

Several ministries and departments said they want guidance for implementing regulations on conditional businesses that are prescribed in the Law on Investment that has been approved by the National Assembly (NA)

Unlike other laws, the law amending and supplementing Article 6 and Annex 4 of the Investment Law on the list of conditional business and investment fields is said to be clear and therefore, the Government is not assigned to issue guidelines for its implementation.

But many are of the opinion that such guidance is still needed, heard a meeting between the Ministry of Justice and other ministries and agencies on Wednesday.

Those agencies voice such concerns as the Government recently requested them to review and make suggestions for detailed regulations on new business fields and those which need to be adjusted, and report to the Government within this month.

According to the Ministry of Justice, most business conditions added into the investment law have already been regulated by current rules and therefore, the list of conditional business fields can be applied from January 1 next year.

The Ministry of Planning and Investment said the law amending and supplementing Article 6 and Annex 4 of the Investment Law has removed 20 sectors from the conditional business list while the list of conditional business fields has been included in the appendix of the investment law.

As such, ministries and departments should just follow those lists and regulations, said the ministry.

However, related ministries and departments said without specific guidance, enterprises operating in the four conditional sectors, including overseas study consultancy service, educational quality accreditation, and manufacturing, assembling and importing autos will face difficulties.

Japanese investors pour US$100 million into Son Kim Land

Japanese investors will pour US$100 million into Son Kim Land, a Vietnamese real estate firm, through an investment fund called Lemongrass Master Fund.  The firm announced it had completed mobilizing foreign capital for this year.

The capital disbursement comes with two phases, with the first tranche of US$46 million disbursed on December 21 this year and the remainder set for the first quarter of next year.

The capital contribution showed the confidence of Japanese investors in the steady development of the company as well as the huge potential of Vietnam’s real estate market in the coming years. 

Son Kim is focusing on the development of housing, hotel, office building projects at prime locations. 

Recently, Son Kim Land has introduced a 17-floor project named Serenity Sky Villas at 259 Dien Bien Phu Street in HCMC’s District 3 which is scheduled for completion in 2018. The firm is developing the Gateway project which would be completed in the last quarter of 2017.

In addition, Son Kim Land Corp has joined forces with Hong Kong Land to launch the Nassim project in Thao Dien Ward in District 2, which is expected to be ready in the third quarter of 2018.

Foreign investment could slow due to low localization

Commercial trade growth for the Asia Pacific Region slowed to 2.3% in 2015, far below the expectations of 2.7% that had been forecast, said the Asian Development Bank in a recently released report.

In the Asian Economic Integration Report 2016 the Bank pegged the region’s gross domestic product (GDP) rate for 2015 at 5.3%, which too fell well short of anticipated growth.

In the report, the Bank warned that foreign direct investment (FDI) inflows that it considers crucial to GDP growth may slow in the near-term on the back of rising protectionism sentiments around the globe.

“Rising protectionism has become an increasing concern to international trade prospects,” the report said, citing the number of anti-dumping complaints filed against the region’s exporters as evidence to support the assertion.

The report noted that the number of anti-dumping lawsuits filed had increased roughly 150% in the five years from 2011 to 2015, jumping by 98 in number from 181 to 279, respectively.

The Bank warned of a more challenging commercial trade and investment environment because of a movement away from globalization and free trade pacts to localization and bilateral trade agreements, which potentially it asserts could negatively impact regional integration.

“Recent political events – such as the Brexit vote in June 2016 and Trump’s victory in the US election – suggest a rising tide of anti-globalization and anti-establishment sentiment among parts of the electorate worldwide,” said the report.

“Despite an unfavourable external environment, developing Asia is expected to maintain 5.7% growth in 2016 and 2017,” said the report.

In dealing with the slow global growth, the Bank believes that greater commercial trade openness and investment can strengthen the region’s resilience, given that in 2015 the Asia Pacific attracted roughly one-third of total global FDI.

Per the report, the Asia Pacific region remained the world’s top FDI destination, having attracted US$527 billion in 2015, up 9% from 2014, while global FDI increased to a record US$1.8 trillion in 2015, with around 30% going to the region.

What this means for the domestic sector businesses in Vietnam is that they need to lay out an agenda to increase their localization rate in the global manufacturing supply chain, said experts at a recent business forum in Ho Chi Minh City.

Most importantly, the domestic sector businesses need to be laser focused on accomplishing the initiative, the experts underscored.

If FDI into the Asia Pacific region were to slow down as suggested— that would mean the domestic sector would face increased competition from their counterparts in neighbouring countries for fewer dollars, the experts noted.

They added that automobile giants such as Toyota, Ford and Honda have already announced they have excluded Vietnam from their expansion plans in the region due to its weak support industries and localization participation in manufacturing.

Citing reports by the Asian Development Bank, the experts pointed out, that only 21% of Vietnam companies have joined the local global supply chain compared with 30% of Thai and 46% of Malaysian companies.

The localization rate of the domestic sectors in the countries within the region will most likely become the number one controlling factor for transnational companies in making the investment decision of where to invest, the experts speculated.

A higher localization rate translates directly to lower costs for transnational companies for such items as transport, less money tied up in inventories of raw materials and intermediary goods, and all around less overhead costs, to name only a few of the savings.

The bottom line is that a low localization rate for the Vietnam domestic sector means lower profits for transnational companies looking to set up shop in the Asia Pacific region compared to other countries, resulting in lower FDI inflows, the experts concluded.

New golf centre breaks ground in Ha Nam Province

Town of Ba Sao officials along with representatives from Ha Nam Province joined representatives of Golf Truong An JSC at a ground-breaking ceremony today (Dec. 24) for a new golf centre.

The new 18-hole Kim Bang golf centre located in the town of Ba Sao is expected to be complete by the spring of 2018, said Truong An JSC reps at the ceremony.

  

The new facility will feature a double-decker driving range, community meeting spaces, practice putting green, practice pitching green, a practice bunker as well as lighting and lots of parking.

If all goes as planned, a second 18-hole golf course would be built on adjacent land and opened by 2020, they said. Combined, the entire facility would span 186.46 hectares with a total budget of more than US$44.69 million (VND1,000 billion).

Ba Sao officials in turn commented that the benefits that everyone in the community will have with this new property are incredible. This new facility will be state of the art, it’s an exciting project, they said, noting they can't wait until it’s finished.

Da Lat aims to become top vegetable producer in Southeast Asia

Local authorities of Da Lat city in the Central Highlands province of Lam Dong has approved a plan to turn the city into the top producer of vegetables in Southeast Asia.

The city also aims to become the number-one destination for agricultural tourism in Vietnam.

Accordingly, the city will develop comprehensive and sustainable high-tech agriculture and improve its investment environment in the 2016-2020 period.

The city hopes that high technology will be applied in 65-70 percent of its farming land areas, equivalent to 7,000 hectares.

The agricultural sector’s production value is expected to hit 4,346 billion VND (193 million USD), of which vegetable and flower exports account for 20 percent.

Besides, Da Lat city will develop sustainable agricultural models in combination with tourism and agricultural services.

Binh Duong’s industrial development index sees slight drop

The industry development index of the southern province of Binh Duong stood at 10.1 percent in 2016, down 0.2 percent year-on-year, reported the provincial Department of Industry and Trade. 

Amid difficulties and challenges, local enterprises had to work hard and actively organised trade promotion activities to maintain business and stable growth. 

In 2016, owners of industrial parks (IP) invested over 300 billion VND (13.2 million USD) in building technical infrastructure systems, the department said, adding that local IPs attracted over 1.6 billion USD in foreign direct investment (FDI), accounting for 85.8 percent of the total investment flow in the province.

The export value of enterprises operating in IPs and industrial clusters reached 11.8 billion USD, while their revenues hit 20 billion USD.

Sectors recorded the highest growth rates included water supply and wastewater treatment with 17.3 percent; electricity production and distribution, 13.3 percent; and mining industry, 10.4 percent. 

Meanwhile, the province’s key export staples such as electric equipment, leather products, and garment-textiles maintained stable growth rates, with respective rises of 18.8 percent, 8.6 percent and 6.7 percent. 

The local authorities approved projects to expand the Bau Bang and Cay Truong IPs, which are hoped to lure more investment and promote service and urban development in the locality.

Binh Duong is striving to increase its GDP growth rate to 13.3 percent in 2020 and turning itself into a key industrial centre, which will focus on developing the supporting industries, generating jobs for about 45,000 labourers. 

In 2017, the province will boost export to developing and regional countries along with expanding spearhead industrial sectors such electricity, electronics, telecommunications, mechanical engineering, chemical and processing industry, the department said. 

Binh Duong will give priority to producing high-tech and environmentally friendly products and those with high-added value.

Vinh Long’s industrial production targets 12% growth in 2017

The Mekong Delta province of Vinh Long has set to expand the local index of industrial production to 12%, and reach VND42,000 billion in total retail sales of consumer goods and services, and US$360 million in export turnover in 2017.

To that end, the locality’s industrial and trade sector was required to give development support policies to solve difficulties facing enterprises’ production and business, and promote administrative reform to attract more investments into the province, said Vice Chairman of the provincial People’s Committee Tran Hoang Tuu.

Accordingly, businesses, especially those operating in key export sectors such cement, fertilizer, rice, handicrafts, and aquatic product will be supported. 

The local authorities will focus on implementing a number of plans to restructure the industry and trade sector, and supporting enterprises in applying new technologies and improving the design and quality of their goods to increase competitiveness. 

The construction of their infrastructure facilities industrial parks (IPs) has been requested to be completed on the schedule committed by investors.

Additionally, trade promotion activities and links between local enterprises with counterparts and distributors in other localities will be intensified, towards expanding markets for local farm produce. 

According to the provincial Department of Industry and Trade, the industrial production in the locality in 2016 recorded the signal of recovery and stable growth with the index of industrial production rising by 11.03%, higher than the national index and ranking the fourth in the Mekong Delta region. 

The province’s industrial production value in the year hit nearly VND25 trillion (US$10.97 billion), up 11.5% year-on-year, importantly contributing to the total gross regional domestic product (GRDP) in the context that the locality’s agriculture sector was heavily affected by climate change. 

In 2016, the local authorities granted new investment licenses to six foreign-invested projects and three domestic ones in IPs with total investment of US$150.5 million.

IPs in the locality have so far attracted 44 projects with total disbursed capital of VND1.15 trillion (US$48.3 million) and US$119.6 million. 

The industrial production and export values in IPs reached VND11.6 trillion (US$539.5 million), and US$238.2 million, year-on-year increases of 21.6% and 9%, respectively.

Sweet toothed Hanoi shoppers spend more this holiday season

Supermarket fast moving consumer good sales in the run up to this year’s Christmas and TET holidays have increased at a marked rate, per the latest retail data from government offices.

Confectionary outpaced all other food and drink categories including Christmas cakes; puddings; beers, wines and spirits; salty snacks and fresh poultry for the first few weeks of December driven by foreign sector premium products. 

Foreign brands from Thailand, Malaysia, Indonesia and the US such as Oreo, Ritz, LU, Cholairs and Kitkat are experiencing the highest growth, commented Nguyen Thang, a shop owner on Xuan Thuy Street in the Cau Giay District of Hanoi.

Mr Thang noted the higher level of sales shows that people are feeling better off this holiday season compared to last year and that prices are reasonable and within the budgets of most residents.

The increase in sales of Christmas cakes, puddings and confectionery could be due to the rise in incomes over the past year for many Hanoians and that’s giving them an urge to splurge on their taste for sweets.

With a little more money in their pocket they want to feature high quality cakes and desserts as centrepieces of their Christmas meal or party spread and now can afford to buy instead of creating themselves.

But don’t count the domestic brands out yet, quipped Mr Thang.

TET holiday baskets are just starting to hit the supermarket shelves and the domestic sector is just starting to shift into a higher gear with a big push on all the traditional sweets, chocolates, and other confectionaries.

Prices of imported confectionaries are across the gamut, he noted, running from expensive to very reasonable.

Some high-end cakes, he said, sell for US$11-US$22 (VND250,000-500,000) per box while popular sweets from Thailand are most reasonable at US$1-US$2 (VND25,000-50,000) per pack.

However, the selection is much greater than last year, he noted, citing a noticeable influx in number of brands and quantities of candies, chocolates, chestnuts, dried grapefruit from Germany, Belgium, Russia, the US, and Switzerland.

Traditional Tet gift baskets consisting of cakes, chocolates, tea, and coffee are running around US$13-US$14 (VND300,000-VND1 million) each depending on size with a bevy of design options to select from.

Vu Vinh Phu, president of Hanoi Supermarket Association, said he sees some positive signs in this year’s sales.

In prior year’s, this time of year, the market would have been flooded with cheap low quality imports from China, said Mr Phu, but this year that’s all changed— with a wide and varied selection of domestic and foreign brands.

Thai products, Mr Phu noted, are running about 10% higher in price compared to Chinese, but their quality is much higher and they are an all-around much better deal for the sweet toothed Hanoi shopper.

Northern key economic region advised to enhance connectivity

The northern key economic region’s socio-economic development is of great significance to the socio-economic development of the Red River Delta and the country as a whole, heard a conference on December 27.

As political, economic, cultural, scientific and technological hub of the entire country, the northern key economic region comprises seven cities and provinces, namely Hanoi, Hung Yen, Hai Phong, Quang Ninh, Hai Duong, Bac Ninh and Vinh Phuc. It boasts a range of advantages in terms of geographical location and infrastructure systems, enabling it to support other regions’ development.

The region is also leading the country in terms of international cooperation, foreign investment attraction as well as close combination of socio-economic development with strengthening defence, security and social order.

In the 2011-2016 period, the regional localities have reaped an array of outstanding cooperation outcomes in planning, transport infrastructure development, industry, trade, tourism, agriculture, among other fields. However, these results have yet to match with the region’s economic development potentials.

Nguyen Duc Long, Chairman of the Quang Ninh People’s Committee, said the most difficulty facing the regional connectivity is transportation. He noted that his province will basically complete highway networks in 2018.

Long also stressed the need to complete an express railway that connects the capital city of Hanoi with the port city of Hai Phong and Ha Long city in Quang Ninh province.

Deputy Minister of Transport Nguyen Ngoc Dong held that the regional localities have yet to fully exploit advantages in waterway transportation, thus roads have been overloaded, leading to high transportation fees and slow flow of goods.

Nguyen Chi Dung, Minister of Planning and Investment, emphasised the importance of a common thought of the entire region in working out policies and investment programmes and projects.

The regional localities should partner together and support each other for common benefits and development, he said.

Chairman of the Hanoi People’s Committee Nguyen Duc Chung asserted that the region has basically completed tasks in the first year of the 2016-2020 development plan, fueled by the country’s intensive international integration and new opportunities.

Hanoi’s economic growth in 2016 reached 8.2 percent, with budget collection hitting 173 trillion VND (7.7 billion USD) and total social investment estimated at 278 trillion VND (12.4 billion USD). The city saw the establishment of over 22,900 new firms in the year, he noted.

Chung called for the regional localities to foster connectivity to create sustainable value chains and fulfill sustainable development goals.

He pledged to adopt more supporting policies for safe agricultural production and trading facilities to encourage links from production to distribution.

Chung also proposed the regional localities organise more trans-provincial tourism events, conferences, exhibitions and fairs to promote regional tourism and introduce cultural values of each locality, thus boosting the rapid development of industry and services.-VNA

Vietjet Air offers five million cheap tickets

Low-cost carrier Vietjet Air has announced its largest promotion programme in the year with five million super-saving tickets from only 5,000 VND (0.21 USD).

The promotional tickets will be sold at www.vietjetair.com  from 12 to 14 daily from December 28, 2016 to February 28, 2017.

The programme is applied for all domestic routes and international ones to Hong Kong (China), Kaohsiung, Taipei, Taichung, Tainan (Chinese Taiwan), Busan, Seoul (the Republic of Korea), Singapore, Bangkok (Thailand), Kuala Lumpur (Malaysia), Yangon (Myanmar) and Siem Riep (Cambodia).

Currently, the airline boasts a fleet of 42 aircraft, including A320s and A321s, and operates 350 flights each day. It has carried nearly 35 million passengers to date.

Airlines cry out as Saigon airport forces empty planes to park elsewhere

Vietnam’s plan to make airlines park their planes overnight at a different airport to reduce congestion at Tan Son Nhat has been dismissed by industry insiders as impractical.

In an attempt to ease overloading at the country’ largest airport in Ho Chi Minh City, the Civil Aviation Administration of Vietnam (CAAV) has asked Vietnam Airlines, VietJet Air and Jestar Pacific to move their idle aircraft to Can Tho Airport in the Mekong Delta and leave them there overnight. Planes serving international routes can still stay in the city.

But at least two of the airlines have protested the plan, saying it is not financially viable to fly empty aircraft to and from Can Tho every day. There is no commercial route connecting the two cities at the moment due to their proximity.

A source from low-cost carrier Jetstar Pacific said there is no airline in the world that has to operate round trips with no passenger only to park their fleet.

One trip between the two airports, which are around 180 kilometers apart, costs around VND200-VND300 million (US$8,800-US$13,200), not to mention the trouble of hosting the crew and technicians in Can Tho overnight, the representative said.

The Jetstar spokesperson also said CAAV’s requirement means carriers should launch new late-night services to Can Tho but Jetstar has no such plans. “New flights or route changes should be driven by real travel demand.”

Another airline executive, who does not want to be identified, also criticized the Can Tho solution as costly and troubling.

The plan can even backfire when a lot of aircraft return to Tan Son Nhat in the morning all trying to fly to other cities and provinces, the person said.

Some experts have warned that passengers will eventually have to bear the higher costs. They say the better solution is to expand the Tan Son Nhat airport immediately.

Tan Son Nhat’s apron is designed to accommodate 57 aircraft at a time, but sometimes there are more than 70 parking there over night.

Vietnam’s airline market is growing at the third fastest pace in Asia-Pacific and the country is grappling with an acute dearth of airport capacity. Aviation authorities estimated that the number of passengers on domestic flights would soar 35% to 28 million this year, accounting for more than half of the total air travel in the country.

Vietnam Airlines, Jetstar Pacific and VietJet Air and the newly founded Vietstar are planning to expand their fleets to a total of 263 aircraft in the next four years. Vietstar has not even been licensed to fly yet.

The country is working on a design for a massive airport in Dong Nai Province to share some of the heavy load for Tan Son Nhat, but construction can take years.

Ha Noi CPI falls slightly in December

     
The December consumer price index (CPI) in Ha Noi fell slightly, the Ha Noi Statistics Office reported.

The slight fall was attributed to a recent decline in the prices of some groups of commodities, including vegetables, gas and petroleum, electricity, housing and construction materials.

An upturn was seen in food, particularly the price of rice, because a huge amount of rice was mobilised for the flood-hit central provinces.

The import and export values of Ha Noi increased slightly in the month. Export value climbed to US$928 million, up 3 per cent from the previous month and 2.1 per cent from the same period last year. The year’s export value was $10.61 billion, a year-on-year increase of 1.3 per cent.

The month’s import value was $2.41 billion, up 0.8 per cent and 2.4 per cent, respectively, against the previous month and the same period last year. The year’s import value was $24.83 billion, falling 3.9 per cent from the same period last year.

Several goods saw a major drop in import value, including petroleum and oil (22.5 per cent), fertiliser (13.8 per cent) and chemicals (14.3 per cent).

Also in December, Ha Noi welcomed 254,000 foreign tourists, up 2.4 per cent from the previous month and 3.6 per cent from the same period last year. The number of domestic visitors was 807,000, up 1.8 per cent and 8.1 per cent, respectively. The city’s tourism sector earned nearly VND4.79 trillion ($210.6 million), up 12 per cent and 10.7 per cent.

In 2016, the city accommodated 2.8 million international tourists and 9.24 million domestic visitors, year-on-year increases of 19.9 per cent and 4.3 per cent, respectively, generating over VND55.1 trillion ($2.42 billion), up 10.6 per cent.

CPI 2016 increases by 4.47 percent

The consumer price index (CPI), edged up 0.23 percent in December compared to the previous month and it represented a 4.47 percent year-on-year increase, said the General Statistics Office of Viet Nam this morning.

Accordingly, inflation rate this year is 4.47 percent, 3 percent lower than the goal, as per the General Statistics Office ‘s new way of annual average inflation, it is just 2.66 percent.

For instance, in December, prices of six out of 11 commodities soared. Drug and medical services rose by 5.3 percent; textile and garment, leather and shoes increased by 0.25 percent; beverage and tobacco skyrocketed by 0.21 percent; houses and construction materials inched up by 0.19 percent, other services surged by 0.1 percent and home appliances was up by 0.08 percent.

In addition, telecommunication services and equipment dropped by 0.03 percent; eating services fell by 0.03 percent; culture, entertainment and tourism decreased by 0.02 percent. Education maintained unchanged.

Basic inflation in December rose by 0.11 percent compared to previous month. It has seen a 1.87 percent  year-on-year increase. The whole year basic inflation surged 1.83 percent compared to 2015.

This year's inflation fluctuated from 1.64 percent to 1.88 percent showing monetary policy improved much which help keep macro-economy sustainability and inflation control.

Flood-stricken central provinces flexibly carry out academic year plan

The Ministry of Education and Training yesterday issued guideline for examination of first semester of the academic year 2016-2017 for the flood-devastated central provinces.

In its guideline, the Ministry said that last time, south-central provinces were hit by prolonged flood causing losses and badly influencing to daily activities of residents and teaching and learning. Accordingly, students are forced to stay home one week and the final term test has also been postponed by one week.

The Ministry proposed departments of education and training in the affected districts flexibly performing the academic year plan according to present condition of each place.

Before, on December 19 night, Deputy Education Minister Pham Manh Hung visited and encouraged teaching staffs and students in Phu Cat District – the worst-hit area in Binh Dinh Province.

Floodwater caused losses in 18 communes of Phu Cat District killing five locals, destroying 16 bridges and separating people.

At present, though flood subsided, 600 households in three villages in Cat Thanh Commune are still isolated. Facilities, teaching and learning devices, computer sets, textbooks and others were destroyed in the disaster with value estimated to be over VND3.7 billion (US$162,748).

Mr. Hung emphasized that the Ministry is determined not let students in the flood-devastated central provinces drop out because of lack of textbooks. In addition, local governments and education sector should provide timely assistance to help students from low-income families, children of beneficiaries of social policies, and families which suffered losses in the disaster, return to school.

The Ministry will also make concerted efforts to help local schools to overcome losses so that they can work out the plan as scheduled. 

To help students in Binh Dinh Province, the Deputy Minister gave piles of textbooks worth VND200 million to the local education sector and VND20 million to teachers and learners in Primary School Cat Trinh No.1.

VASEP suggests stricter checks on tra exports to China

The Vietnam Association of Seafood Exporters and Producers (VASEP) has proposed strictly checking the quality of tra (pangasius) fish shipments to the Chinese market.

VASEP data showed revenue from tra exports to China, including Hong Kong, is predicted to surge 90% year-on-year to US$305 million this year, making China the fastest growing export market for Vietnamese pangasius.

Doan Toi, chairman of Nam Viet Joint Stock Company, predicted fish shipments to the northern neighbor next year would grow a further 30-40%.

Meanwhile, tra exports to the European Union (EU) are forecast to stay flat next year. Therefore, China will certainly be in the spotlight.

However, VASEP general secretary Truong Dinh Hoe warned that focusing too much on a single market was risky. Thus, the association wants to maintain the proportion of fish exports to China at around 20% of the sector’s total next year.

A report of the National Agro-Forestry-Fisheries Quality Assurance Department (Nafiqad) said the agency had checked around 75,000 tons of tra fish bound for China in 2016 while the total value of all tra shipments to the neighboring country had amounted to over US$300 million.

Based on the current export price, the volume of fish export to China is 105,000 tons. “This means some 30,000 tons has not been checked,” said Hoe.

He suggested controlling the pre-export quality certification process; otherwise, sub-standard products will cost the fish export sector dearly in the long run.

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