Beverage sector faces severe glut

Domestic beverage firms have been struggling with a sales slowdown, which is evident in a rise in inventories, heard a seminar in HCMC on November 22.

At the seminar on the performance of the beverages market this year and forecasts for next year held by the Vietnam Beer – Alcohol – Beverage Association (VBA), VBA chairman Nguyen Van Viet predicted the oversupply would suppress prices of drinks. In the first eight months of this year, beverage inventories were 62% higher than in the same period last year.

Viet attributed the modest growth of the sector to the high special consumption tax on beverages, which rose from 55% in 2015 to 60% this year and could probably surge to 65% next year.

Delegates at the seminar voiced concerns over the slower development of the sector. Shivam Misra, chairman of the Wine & Spirits Sector Committee of the European Chamber of Commerce in Vietnam (EuroCham), said the Vietnamese beverage market holds growth potential but high tax rates have impeded operations of enterprises. He expected the Vietnamese Government would issue preferential policy to spur growth in the sector.

Truong Quang Thin, vice chairman of the Hanoi Anti-counterfeit and Trademark Protection Association, said many legal documents have been issued to reduce beer and alcohol consumption. Authorities should assess impacts of policies before adopting them.

Local enterprises have to compete strongly with each other and with foreign firms. Therefore, VBA chairman Viet proposed State agencies early announce new policies to enterprises so that they can operate efficiently.

HCMC needs VND480 trillion for development projects next year

HCMC will have to raise VND480 trillion (US$21.12 billion) next year to fund its development projects designed to achieve gross regional domestic product (GRDP) growth of 8-8.5%.

According to a public investment plan for 2018 submitted by the HCMC Department of Planning and Investment to the city government, State-owned enterprises will contribute 18.3%, non-State firms 65.7% and foreign-invested companies 16%.

The city will focus on boosting economic development, upgrading infrastructure, providing clean water, reducing traffic congestion, coping with inundation, protecting the environment and adapting to climate change.

Total investment in the city this year totaled VND370 trillion, up 19% over last year.

HCMC has offered policy incentives to mobilize capital for these development projects such as demand stimulus packages.

As for the city’s budget allocation next year, the city will prioritize key projects including those to ease chronic traffic jams near Tan Son Nhat International Airport and Cat Lai Port.

Flood control and environment protection programs will receive more investment than in 2017.

Wooden product exporters regain growth momentum

Exporters of wooden products regained double-digit growth in the first ten months of 2017 after a growth rate of a slight 1.1% last year, said Huynh Van Hanh, vice chairman of the HCMC Handicraft and Wood Industry Association (HAWA).

At the Vietnam International Furniture and Home Accessories Fair 2017 (VIFA Home 2017) which kicked off at Phu Tho Indoor Stadium in HCMC on November 23, Hanh said the high growth rate might be maintained in the final two months of the year.

In January-October, Vietnam exported US$6.21 billion worth of wood and wooden goods, up 11.2% year-on-year, according to the General Department of Vietnam Customs.

Local wood enterprises will boost their exports in the rest of the year, so the sector’s export revenue may reach US$8 billion this year, an increase of 14% over last year.

Vietnamese wooden goods’ quality and designs are highly valued. The country mainly shipped the products to the U.S. (US$2.66 billion), China (US$873 million) and Japan (US$850 million) in the ten-month period.

Many firms have opened new factories and invested heavily in advanced technology to improve their production capacity. They have also employed designers to create new products to increase products’ value.

Vietnam annually spends only US$68 million importing wooden goods, mainly from China.

Domestic wood enterprises have improved their products’ quality and designs, and offered good after-sale services and other services to satisfy customers.

Local demand for wooden products grows by 5-6% a year and most of the products are used in high-end hotels and resorts.

U.S. spends big on textile, garment imports from Vietnam

The U.S. remained the biggest buyer of Vietnam’s textiles and garments, according to the General Department of Vietnam Customs.

US$10.2 billion of textiles and garments had been shipped to America in the year to end-October, nearly half of the country’s total. Vietnam exported US$21.43 billion worth of textile and garment products in January-October, up 9% year-on-year.

Trailing far behind the U.S. was the European Union (EU) in the second position with US$3.06 billion, and Japan with US$2.52 billion, growing 5.7% and 6% against the year-ago period respectively. South Korea ranked fourth with US$2.34 billion, surging 12.2% over the same period last year.

Pham Xuan Hong, chairman of the HCMC Association of Garment-Textile-Embroidery-Knitting (AGTEK), said the sector’s exports grew 10% in the year to date. The sector expects to maintain high export growth in the remaining two months to reach the target of US$30.5-31 billion set for this year, he said at Vietnam International Textile & Garment Industry Exhibition and Vietnam International Textile & Apparel Accessories Exhibition, or VTG 2017.

At the Cotton Day 2017 event held in HCMC two months ago, Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), also had the same idea as Hong’s.

According to customs data, the target may be hard to be achieved in the rest of the year.

However, Hong said that export revenue from textiles and garments totaled US$25 billion in the ten-month period, above US$21.43 billion released by the customs.

VTG 2017, which kicked off in HCMC on November 22, will help local enterprises access modern machinery and equipment, enhancing their production capacity to meet increasing demand for textiles and garments, Hong added.

Enterprises participating in the expos expressed optimism about the development of the sector although the U.S. has withdrawn from the Trans-Pacific Partnership trade agreement, now renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

They said Vietnam could further boost shipments of textile and garment products to the EU, South Korea and Japan in the 2018-2020 period.

At the expos, Nguyen Phuong Nam, managing director of Lien Viet Services Trading Production Co Ltd (Nantex) which distributes machines and equipment of popular brands of Germany, the U.S. and France, said the company’s sales had grown well over the last three years. It has sold more than 60 Walz automatic printing machines in the first ten months of the year, double the figure last year.

Domestic enterprises have invested heavily in modern machines and technology due to stricter requirements of customers for high-quality products, said Nam.

VTG 2017, which is taking place at the Saigon Exhibition and Convention Center (SECC) in HCMC’s District 7 until this Saturday, features more than 450 booths of 400 exhibitors. They showcase their latest solutions and machines in the textile and garment sector such as sewing, textile screen printing, embroidery, and fabric dyeing machines among others.

The event also includes seminars on the impact of the Fourth Industrial Revolution, opportunities from free trade agreements, and how to keep staying ahead in the market.

The expos are being jointly held by the Vietnam National Trade Fair and Advertising Company (Vinexad) and Yorkers Trade and Marketing Service Co Ltd, and co-organized by Guangdong Sewing Equipment Chamber Commerce, Hong Kong Apparel Machinery Association, and Paper Communication Exhibition Services.

Ministry prevents fraudulence in Vietnamese steel export to US

The Ministry of Industry and Trade yesterday said that it has been working with relevant agencies to keep a close eye on Vietnamese steel export to the US and seriously implement regulations against goods origin and trade fraudulence.

According to the ministry, some press agencies recently cited some foreign information sources saying that 90 percent of steel exported to the US from Vietnam were made in China.

Quoting data from General Department of Vietnam Customs, the ministry said that Vietnam imported 5.5 million tons of steel products worth $3.17 billion from China in the first nine months this year.

Major import items comprise flat rolled steel alloy (HS 7225 3090, 7225 4090), galvanized steel (HS 7210 4912), flat rolled stainless steel (7219 1300), rolled steel (HS 7209 1600) and steel rods (HS 7227 2000).

During the same time, the country exported to the US 378,164 tons of steel worth $302.9 million. The most exported item was chromium galvanized steel (HS 7210 6111) with the value of $93 million, accounting for 31 percent of the total export volume to the US.

Statistics show that there are 11 steel products shipped to the US with HS codes same with products imported from China, accounting for 34 percent of the total export volume to the US.  Products under the remaining HS codes are not or bought from China but the volume is little and insufficient for export.

So far the ministry has not received any information from the US about investigation over the Chinese origin steel products.

Still the ministry has been working with relevant agencies such as the General Department of Vietnam Customs and Vietnam Chamber of Commerce and Industry to keep a close eye on the situation and seriously implement regulations against goods origin and trade fraudulence.

Beverage inventory highly increases: VBA

Beverage inventory in 2017 has increased 62 percent over the same period last year and many businesses have reduced their output by over 10 percent, said Vietnam Beverage Association (VBA) yesterday.

The association was speaking at a workshop on the beverage market this year and forecasts next year, hosted by the VBA in HCMC.

Businesses in the industry have met with difficulties as special consumption tax (sct) has continuously increased from 55 percent in 2015 to 60 percent in 2017 and will be up to 65 percent in 2018. The special consumption tax rise would also reduce consumption of beer and wine products.

Improving the position of Vietnam’s rice

The country’s rice exports in the first ten months of this year increased in comparison to the same period in 2016, both in volume and value, thanks to the growth of exports to key markets including China, Malaysia, the Philippines and Bangladesh.

In 2015, the rice variety AGPPS 103, developed by Loc Troi Corporation, was listed among the world’s three most delicious rice varieties. Immediately after receiving the title, the group continuously received export orders for this type of rice, a good sign in the context of rice exports facing numerous difficulties a few years ago. Currently, it is more important to enhance the export of high quality rice.

According to statistics released by the Ministry of Industry and Trade, Vietnam exported five million tonnes of rice in the first ten months of this year, an annual increase of 21.6%, earning US$2.23 billion (up 20.3% over the same period last year). The structure of Vietnam's export rice has shifted positively, with a sharp decline in the middle and low-grade rice segment and a strong increase in the volume of rice varieties with high quality and value (such as sticky rice, japonica and brown rice). The change has been also consistent with the directions for the development of export markets.

The country’s rice exports in the first ten months of this year increased in comparison to the same period in 2016, both in volume and value, thanks to the growth of exports to key markets including China, Malaysia, the Philippines and Bangladesh.

Specifically, China is now the largest market, accounting for nearly 40% of the total rice export turnover of Vietnam, with 2.03 million tonnes (equivalent to US$909.04 million), an increase of 35% in volume and 34% in turnover over the same period last year. Over the past few years, types of high quality rice, including fragrant and glutinous rice, have been the main commodities exported to this market.

Following China, the Philippines, Malaysia, Ghana and ASEAN are the main export markets of Vietnamese rice. In addition, in the first ten months of the year, the exports of rice to Senegal and Iraq saw a sharp increase. Vietnam exported 98,000 tonnes of rice to Iraq (up 91 times over the same period in 2016), worth US$51.45 million (up 108 times); meanwhile the exports to Senegal increased 178 times in volume and nearly 90 times in turnover (reaching nearly 25,000 tonnes, worth US$8.18 million).

In addition to the advantages in the markets, the prices of exported Vietnamese rice have increased sharply from US$360 per tonne in early June to US$509 per tonne by October. The average rice exports price reached US$448.6 per tonne in the first ten months of the year, the highest price level in recent years.

There are many opportunities for the growth of rice exports, particularly in China where Vietnamese 5% broken white rice is cheaper than domestic rice. In addition the 23 Vietnamese enterprises that have been checked and granted permission for exports, nine more rice enterprises are undergoing the evaluation process for the license from the Chinese side to export their products to this market. Other markets, including Sri Lanka and the Philippines have also launched many rice import packages in the last few months of the year. Africa and Iraq have a great demand for rice, opening more opportunities for the growth of this commodity.

Grasping the demand of the markets, many Vietnamese enterprises have paid greater attention to the production of high quality rice varieties and specialty rice. Provinces in the Mekong River Delta have increased the cultivation of jasmine rice varieties, including Jasmine 85, Tai Nguyen (natural resources), VD 20, and OM 4900. The enterprises have also enhanced the use of the latest rice varieties from the Mekong River Delta Rice Institute, Southern Seed Centre and Soc Trang Rice Research Team to improve the quality of rice. As a result, the short-life ST24 rice variety, which can yield over five tonnes per hectare and has the aroma of pineapple, has been successfully produced. ST24 has become an honour to Vietnam’s rice as it was recognised as one of the three most delicious rice varieties in the world.

The Ministry of Industry and Trade is actively implementing the strategy for developing the country's rice export market towards a reduction in the volume and an increase in the value of exported rice. The Ministry will develop plans and solutions to develop each rice export market and respond to market changes, as well as building a database of rice market information.

The localities also reorganised their production towards the Good Agricultural Practices (GAP) certification, strictly controlling the production process to ensure hygiene and food safety and meet the criteria and standards of importing countries. For example, Dong Thap province has planned and built large-scale raw material areas, in association with developing the brand of the local rice. The province has also focused on the investment for essential infrastructure and techniques that can create favourable condtions for the application of VietGAP and GlobalGAP procedures. In addition, Dong Thap is actively popularising the information on the strategy for developing the country's rice export market to enterprises, aiming to gradually improve the efficiency of rice exports.

With the satisfactory results of rice exports, the Vietnam Food Association has raised the target of rice exports to 5.6 million tonnes, instead of 5.2 million tonnes this year. To date, the country has reached 91% of the target.

Connecting production between Hanoi and provinces

A conference on connecting the supply and demand and trade connections between Hanoi and provinces nationwide in 2017 has been organised by the Hanoi Department of Industry and Trade and the Ministry of Industry and Trade at Hanoi Daewoo Hotel, with the participation of nearly 400 enterprises from provinces and cities across the country.

Representatives of 49 provinces and cities brought to the conference the most characteristic products of their localities, mostly specialties and clean agricultural products. Especially, as opposed to many other conferences on introducing products, the conference has showcased many processed products.

La Fresh, a unit specialising in producing fruit and processed products from Da Lat’s fresh fruits, has introduced its special items, such as strawberry, mulberry and lemon jams, as well as various kinds of fruit juice such as Siamese custard-apple, orange, lemon and dragon fruit, along with some temperate fruits such as berry fruit and lemons, which have been successfully planted and produced. However, the main items that La Fresh sells are processed fruit, as the quantity of fresh fruit for their production is not enough to supply the domestic market.

In many other localities, high quality specialty agricultural products are also often not enough to meet the demand, even in the provincial market not to mention the outside market. Meanwhile, the specialties with lower quality, which are planted on a large scale and sold everywhere with the ‘specialty’ label, have somewhat discouraged consumers. It is also a common occurrence in many localities.

It can be said that in order to bring high quality products to consumers, create prestige, and build trust with consumers, each locality needs to deploy comprehensive measures from creating high-quality production and building local brands to planning marketing plans.

In particular, Hanoian enterprises need to continue investing in and developing the distribution network in accordance with the wholesale and retail network master plan of the city.

Previously, Hanoi, in coordination with other provinces and cities, has organised activities to connect trade and introduce products, such as Son La goods week in Hanoi, Luc Ngan lychee week in Hanoi, Hung Yen longan festival and a number of conferences on connecting trade connections between Hanoi and Lam Dong.

In addition, Hanoi has also directly introduced specialties of the provinces and cities at the distribution system of foreign enterprises, such as Aeon, Central Group, Coop, Conad, Lotte and Big C, through trade promotion programmes. Meanwhile, the city has also organised programmes to introduce, sell the original price or promote Vietnamese products, such as Luc Ngan lychees, Thanh Ha lychees, Cao Phong oranges, Dak Lak butter, Lang Son custard-apples, and Moc Chau plums, at many supermarkets in the city.

Hanoi also regularly organises many progammes to connect producers, scientists, distributors and consumers that contributed to stabilising the consumer price index, increase the total retail sales of goods and services, help businesses to take initiative in production and consumption markets, and stabilise input and output, especially in seasonal products.

The conference is considered as an opportunity to connect localities and enterprises, step by step elevating the position of the localities’ products in the capital market.

IRC urged to promote Vietnam’s investment environment

Deputy Prime Minister Trinh Dinh Dung wants the senior leaders of Inoue Rubber Vietnam Co., Ltd (IRC) to serve as a bridge to promote the investment environment of Vietnam, and Vinh Phuc province in particular, to the international and Japanese market.

The Government, ministries, sectors and localities will continue to create favorable conditions for IRC, as well as other Japanese companies and international investors to expand their production and business activities in Vietnam, in order to jointly develop in sustainable manner, Deputy PM Trinh Dinh Dung said at a ceremony to celebrate IRC Vietnam’s 20th founding anniversary, held in Hanoi on November 24.

The Deputy PM congratulated IRC Vietnam on the outstanding results that the company has achieved over the past 20 years. He said that IRC Vietnam, along with other Japanese companies investing in Vietnam, have made important contributions to the socio-economic development of localities such as Hanoi and Vinh Phuc, thus contributing to the deepening of the ‘Extensive Strategic Partnership for Peace and Prosperity in Asia’ relationship between Vietnam and Japan.

He suggested that the enterprise continues improve its quality and expand its export market. Meanwhile, it is necessary to comply with environmental protection regulations, continue giving priority to training and using local labourers, and take good care of employees. Deputy PM also noted that businesses need to have close ties with local people and coordinate with the authorities to ensure social security.

Inoue Rubber Vietnam Co., Ltd. was established in 1997 and is currently the leading supplier of tyres, tubes and industrial rubber goods for famous motorcycle companies in Vietnam, such as Honda Vietnam, Yamaha Vietnam and VMEP. In addition, IRC Vietnam’s products have been exported to major markets.

Fair honours Hung Yen orange

Hung Yen Orange Fair is organised for the first time in Ecopark, in the northern province of Hung Yen, from November 25-26, aiming to promote and introduce agricultural products from Hung Yen Province in general and the province’s oranges in particular.

Addressing the opening ceremony, Nguyen Minh Quang, Vice Chairman of the provincial People's Committee, affirmed that the fair is an opportunity for cooperatives, gardeners, business households to exchange experiences, listen to suggestions by consumers, distributors to improve product quality.

Meanwhile, the event also contributes to promote, preserve and develop the brand name of agricultural products of Hung Yen, he added.

The fair features 53 booths exhibiting products, which includes oranges, citrus fruits and other provincial agricultural items. The oranges are selected from districts in the province such as Van Giang, KhoaiChau, Kim Dong, Yen My, Phu Cu and Hung Yen city.

Hung Yen Province has over 1,400 ha of orange and mandarin plantation, harvesting more than 31,000 tonnes of the fruit per year.

Hung Yen oranges are famous for their superior quality compared to other localities. This is due to the fact that gardeners and ornamental growers in Hung Yen always combine traditional farming skills with the latest technologies and technical advances into the VietGAP production model, ensuring quality and safety for consumers.

EVN building recognised as green energy construction 2017

The building of the Electricity of Vietnam (EVN) was among 15 construction works recognised as using green energy in Hanoi in 2017 following its effectiveness towards saving energy.

On November 25, the Vietnam Energy Conservation and Efficiency Association and the Management Board of the Energy Efficiency under the Hanoi municipal People’s Committee held a ceremony granting the title of using green energy for construction works in Hanoi.

The building of the EVN located at No.11 Cua Bac Street, Ba Dinh district was presented the title with a recognition period of three years.

According to the EVN, energy efficiency solutions have been implemented at the building for five years which has helped save over 906,000 kWh of electricity over the past three years, equivalent to an estimated VND2.2 billion (US$96,800).

The management board of the EVN building is developing a plan to save over VND1.4 million kWh of electricity in the next five years which is equivalent to nearly VND3.6 billion (US$158,400).

This is the first year that Hanoi has presented the title of using green energy to buildings that have successfully applied management and technology measures in reducing energy losses and energy consumption while ensuring its developmental goals.

HCMC not to pilot property tax collection

The pilot implementation of property tax collection in HCMC has been removed out from the draft resolution on specific mechanisms for city development, which the NA will vote to approve this afternoon.

That was said Mr. Phan Nguyen Nhu Khue, deputy head of HCMC NA Delegation, on the sideline of the NA session yesterday afternoon while talking to Sai Gon Giai Phong Newspaper about some changes in the draft resolution after getting NA deputies’ opinions.

According to Mr. Khue, the property tax has been removed from the resolution because HCMC has yet to build a detailed project about that and the removal aims to prevent businesses from concerning about city business and investment environment.

Yesterday, NA Finance-Budget and Juridical Committees have commented upon and assessed the draft resolution, submitted it to the Standing Committee of the NA to report to the NA to press the button this afternoon.

The Government and NA organs had created the best conditions for the city to develop, said Mr. Khue.

In the previous draft resolution, HCMC would be permitted to keep revenue from equitization of state own enterprises under management by City People’s Committee and from state capital withdrawal from economic organizations which the committee is owner representative.

The city would use these revenues and city budget to develop socioeconomic infrastructures including anti-flooding and two new hospital projects. The central budget would not supplement for the city VND18.8 trillion ($827 million) as per the mid-term public investment plan in the phase of 2016-2020.

So far, VND10 trillion out of VND18.8 trillion has not been handed over to the city.

In the changed draft resolution, that amount will no longer be supplemented while VND8.8 trillion which has been allocated to build the two hospitals will be kept unchanged.

HCMC will mobilize the remaining of VND10 trillion from equitization and land use fee revenues to implement projects.

Replying to reporters’ queries that if the changed resolution inclines to revenue and resources not breakthrough mechanism, Mr. Khue said that besides seeking capital sources, the mechanism would reorganize apparatus, develop human resource and intensify authorization in line with responsibility in work.

If the city has capital without scientific implementation plans, it will not bring high efficiency. Therefore, the mechanism will not only create capital motivation for investment and development but also count other aspects to solve difficulties.

For instance, HCMC will be eligible for transferring land use purpose of rice farming area measuring 10 hectares and wider but it must ensure rice farming area as per regulations of the Government.

In recruiting talents, HCMC will eliminate the requirement that applicants must have household register books in the city.

After the NA passes the mechanism, HCMC Party Committee must issue a resolution to carry out that. Afterwards, Party Civil Affair Committee in the city will start establishing sub-committees to build specific projects to implement the mechanism according to its roadmap.

HCMC businesses spend VND18 trillion on preparing Tet goods

Businesses in HCMC have prepared necessary goods to provide the market two months before and after the Tet holiday with the total value of VND18 trillion (US$792 million), said the Department of Industry and Trade yesterday.

Of the total number, subsidized goods value tops VND7 trillion, the agency said.

The volume of prepared goods has increased from 15-20 percent compared to the city’s plan and 20-30 percent over the last Tet holiday.

Many kinds of goods have been stored with large output able to control 32-55 percent market demand comprising poultry, chicken egg, processed food, cattle meat and cooking oil.

Consumption demand is forecast to approximate 41.1 million liters of beer, 47.2 million liters of beverages and 18,000 tons of confectionary in two months of the Tet holiday season.

The number will be 600,000-700,000 apricot blossom pots, 250,000-300,000 ornamental plant pots and 135 million of stems of flowers. Flower markets Ho Thi Ky and Dam Sen and wholesale markets Binh Dien and Thu Duc will supply 80 percent of the fresh flower market share.

Besides Tet goods preparation, HCMC will organize a goods supply and demand connectivity conference between HCMC and provinces from December 8-10.

The conference will introduce many specialties which will be sold in supermarkets in HCMC during the Tet holiday.

The Department of Industry and Trade has worked with businesses and distributors to launch promotional and discount programs in months near the holiday with the total discount value of VND1.2 trillion ($52.78 million) on products such as beverage, confectionary, jam, clothes, meat, seafood, vegetables and fruits.

This year, the Lunar New Year will come one and half a month after the Western New Year. The Tet holiday is expected to last seven days so purchasing demand will rocket in early February.

Deputy director of the Department of Industry and Trade Nguyen Huynh Trang said that the agency has surveyed businesses’ goods preparations and been able to forecast supply, demand as well as prices of necessary items. Therefore price fluctuation is unlikely to occur.

Vietnam to license FLEGT for wood export to EU

Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) and Agro Processing and Market Development under Ministry of Agriculture and Rural Development yesterday issued a report about licensing Forest Law Enforcement, Governance and Trade (FLEGT) as Vietnam and the European Union had initialed a Voluntary Partnership Agreement in Forest Law Enforcement, Governance and Trade (VPA/FLEGT).

Accordingly, the Southeast Asian country will develop and operate a timber legality assurance system of Vietnam (VNTLAS) to verify the timber origin from the source of the supply chain to processing, exporting and licensing FLEGT.

In return, Vietnam’s FLEGT export consignments will be free to import to the EU without having to take legal responsibility for explaining the timber origin in accordance with the wood legal regulations which has been effective since March, 2013 all over the EU.

As per regulation, there are four new important contents to be noted and implemented, including management; control for imported wood; enterprises classification; export verification and FLEGHT licensing.

The Ministry of Agriculture and Rural Development and the Forest Protection Department will classify enterprises into two groups, including the enterprises have been complied with laws and ones not complied with the laws yet.

VNTLAS applies to all origin of wood inputs, all enterprises involved in the wood supply chain and all domestic or international markets.

VPA/FLEGHT will be expectedly effective by 2020.

Work starts on $19m area in Bình Dương

Construction on a US$19-million production area began in the southern province of Bình Dương’s Bàu Bàng Industrial Zone (IZ) last week.

The 13ha area is financed by four Taiwanese firms – DDK Việt Nam, Yi Xing, T-Star and Ever Young companies.

These firms are involved in real estate, factory leasing, industrial infrastructure investment consultation, environmental protection equipment, electricity and aluminum product production.

The construction of the area is considered the start in forming a concentrated production cluster of Taiwanese firms in the province. The cluster, expected to cost $200 million, will cover an area of 80ha in the IZ.

In his speech at the ceremony, Vice chairman of the provincial People’s Committee Trần Thanh Liêm spoke highly on the Taiwanese firms’ investment in the IZ, as well as their contributions to local socio-economic development.

Local authorities would continue to create the most favourable conditions for the investors during their operations in the locality, Liêm said, while expressing his hope that more Taiwanese enterprises would choose Bình Dương as their investment destinations.

Currently, Taiwan is the province’s leading source of foreign direct investment with 772 projects worth over $5.5 billion.

Việt Nam’s fruit imports from South Korea surge

Korean exports of pears and apples to Việt Nam have soared in the past years, according to the Korea Agriculture Food Trade Association.

Korea’s pear exports to Việt Nam surged by 9,440 times in the 2011-16 period, from US$52,000 in 2011 to $4.96 million last year.

Its apple exports to Việt Nam also went up by 928.8 per cent in the period, from $66,000 to $679,000.

Speaking on the sidelines of a seminar in HCM City on Friday, Cao Thị Quỳnh Giao, director of Lâm Khải Hoàn Co.Ltd, said her company imports about two to five containers (each container having a loading capacity of 600kg) of pears and apples from South Korea to distribute to supermarkets in Việt Nam.

“Many Vietnamese consumers are fond of Korea’s pears due to its good quality and reasonable prices,” she said.

Her company plans to import more pears and Fuji apples from Korea, kiwi from Australia and gala apple from the US, she said.

Tạ Minh Thành, deputy director of Tứ Sơn Supermarket in Châu Đốc, An Giang Province, said the supermarket started to sell Korean pears and apples two and a half years ago, with sales of pear very good.

“We are here to meet Korean firms as we want to find suppliers of apple/pear gift boxes to serve customers on the occasion of Lunar New Year holiday,” he said.

Lee Soon Nyung, managing director of Hyun Jin Corporation, said Korea exports about 25,000 tonnes of pears a year, with the US (10,000 tonnes), Taiwan (10,000 tonnes) and Việt Nam (2,000 tonnes) being three biggest export markets.

It exports about 3,400 tonnes of apples a year, of which 2,000 tonnes is exported to Taiwan and 300 tonnes to Việt Nam.

As Việt Nam does not cultivate pears and apples, many businesses have imported them from other countries to supply in the market. Vietnamese people are fond of Korean fruits, especially apples and pears, he said.

“Việt Nam is a very potential market. We want to export more apples and pears as well as other kinds of fruits into Việt Nam.”

“The business meeting today will help us understand more about requirements of our Vietnamese partners so as we can satisfy their demand.”

Lee Sun Hyung from Gyeong Buk Corporation, said "Việt Nam is an emerging market for Korea’s fruits".

Many Korean companies as well as his company have prepared high-grade pear and apple gift boxes with nice design, hoping that the products will be consumed well in Việt Nam in the future, he said.

Organised by the Korea Agriculture Food Trade Association and the Việt Nam Chamber of Commerce and Industry, the Việt Nam-Korea business seminar attracted seven Korean fresh fruits exporting firms and 15 Vietnamese enterprises.

The two sides exchanged information on import-export situation, prices, and quality of products as well as difficulties accounted during the import process. Korean firms talked about ways to improve the problems and propose ways to increase exports in the future.

The association said it plans to invite Vietnamese fruit importers to visit South Korea to understand more about the production process of the fruits as well as discuss business opportunities.

Việt Nam imported vegetables and fruits worth $1.02 billion in the first eight months of 2017, a year-on-year increase of 94 per cent. Of which, the import value of vegetables was around $200 million, while fruits imports were more than $800 million, double the same period last year, according to the Ministry of Agriculture and Rural Development. 

Conference seeks ways for Italian products to enter Vietnam

Vietnamese consumption trend, potential customers and competitive capacity of Italian businesses were discussed at a conference held in Turin, the capital city of the Piedmont region in northwest Italy on November 24.

The event provided crucial information for Italian firms who are interested in the Vietnamese market and especially those are exporting agricultural products and food which are strengths of the Piedmont region.

Vietnamese Ambassador to Italy Cao Chinh Thien updated participants on the latest information about the Vietnamese market while appraised efforts made by the Italy-Vietnam Trade Chamber in promoting trade and investment between the two countries.

According to Walter Cavrenghi, General Secretary of the Italy-Vietnam Trade Chamber, a delegation of businesses from Piedmont will study and seek investment opportunities in Vietnam in March 2018.

Talking with the Vietnam News Agency’s correspondent, President of the Chamber Fulvio Albano said that his organisation will continue to sustainably enhance trade and investment between businesses from Italy and Vietnam.

On the occasion, the Vietnamese ambassador visited some agricultural production establishments in the Piedmont region.

The same day, Thien worked with leaders of the Italian Social Security Administration in Piedmont. They agreed that Vietnam and Italy can share experience in social insurance management.

He lauded the administration’s initiative to organise a meeting to popularise information about insurance’s benefits, responsibilities and regulations among Vietnamese people working and studying in the locality.

Vietnam’s images, potentials spotlighted in Romania

Vietnam’s achievements in economy, politics and foreign affairs as well as the country’s beauty and people were featured through a photo exhibition and a seminar recently held in Bucharest, Romania.

The event was organised by the Centre for Indochina Studies under the Bucharest Academy of Economic Studies in collaboration with the Vietnamese Embassy in Romania.

Introducing the country’s brilliant successes in various fields after over 30 years of Doi Moi (reform), Vietnamese Ambassador to Romania Tran Thanh Cong highlighted that these achievements have elevated Vietnam’s economic and politic position on the international arena.

The successful hosting of the APEC 2017 Economic Leaders’ Week is a clear proof for the country’s deep integration into the regional and global economy, he stressed.

Regarding Vietnam-Romania relations, Cong affirmed that both sides have considerable potentials, advantages and opportunities to boost cooperative ties, especially in economy.

Maritime economy is billed as a key strength of Vietnam with important sea routes through the East Sea, which help promote trade exchanges with foreign countries, including Romania, he said 

The ambassador affirmed that Vietnam always creates favourable conditions for Romanian investors.

Romanian experts spoke highly of Vietnam’s political stability and economic achievements as well as its role in the Asia-Pacific region and international forums.

Investment opportunities in Vietnam for Romanian investors were on the table as well. Participants said that the opportunities mostly come from Vietnam’s preferential policies and traditional relationship between the two countries.