Curious Seiki invests in Bac Ninh factory

Curious Seiki Vietnam has signed a contract to take a land lease from Viglacera, the investor in Bac Ninh province's Tien Son industrial zone.

Accordingly, Curious Seiki Vietnam will build a 1.1 ha factory to produce automobile spare parts, with a capacity of 2.4 million products per year.

The factory is expected to start operations in the third quarter of next year.

Curious Seiki Co. Ltd is a Japan-based corporation which manufactures motor vehicle parts and accessories, with a head office in Toyokawa city.

Telecoms sector sends positive message

The net turnover of the telecommunications sector is estimated to reach 179.9 trillion VND (8.5 billion USD) this year, representing an increase of 7.6 percent on 2011, according to the General Statistics Office (GSO).

The GSO also said that of the total 12.5 million new subscribers in 2012, there were just 16,500 fixed phone subscribers, with the remainder made up of nearly 12.5 million mobile phone subscribers.

Up to the end of December, the country had a total of 136.6 million phone subscribers, including 14.9 million fixed phone users, down 12.9 percent on last year. There were 121.7 million mobile phone subscribers, marking a 3.5 percent rise year-on-year.-

A milestone in Vietnam-RoK relations

Twenty years ago on December 22 Vietnam and the Republic of Korea officially established diplomatic ties, marking a turning point in bilateral relations.

In a recent interview granted to the Vietnam Investment Review, Foreign Minister Pham Binh Minh said the past 20 years have seen Vietnam-RoK relations develop fruitfully in various areas, spanning politics, investment, and trade to cultural and people-to-people exchanges.

In 2009 the two countries decided to establish a strategic cooperation partnership, opening up opportunities for more expansive cooperation in the future.

Annual two-way trade has grown and flourished over the years, increasing from USD500 million in 1992 to USD18 billion in 2011. If this stable growth is maintained, bilateral trade value is expected to reach its USD20 billion target ahead of the 2015 deadline.

The RoK is the fourth largest trade partner and the 8th largest importer of Vietnam. It consumes key Vietnamese commodities including seafood, garments, footwear, timber furniture, and farm produce.

Many major RoK companies like Samsung, LG, Hyundai, Posco, Lotte, Doosan, Kumho, Daewoo, SK, and CJ have successfully and efficiently undertaken operations in Vietnam.

Samsung-funded mobile phone manufacturing project valued at US$1.5 billion in Bac Ninh province is a case in point. In 2011 the plant earned US$6 billion from its exports, accounting for more than 80 percent of the province’s export earnings. It aims to record US$10 billion from exports in 2013, which would make Samsung Electronics Vietnam (SEV) the biggest exporter in the country.

During the past 20 years, RoK investments in Vietnam have increased by 240 times. More than 3,000 RoK businesses have invested in Vietnam with a total registered capitalisation of nearly USD25 billion, ranking second amongst foreign investors in the country. They operate in 47 out of 63 provinces and cities across the country, and in 18 of its 21 economic sectors.

RoK investment is focused on the processing and manufacturing industries (with 1,897 projects accounting for 49.5 percent of total registered capital), real estate (with 78 projects and 27.6 percent), and construction (with 413 projects and 8.6 percent).

RoK-invested businesses are expected to contribute 10 percent of Vietnam’s 2012 export total.

Foreign Minister Minh attributed the flourishing trade to the reliably close political ties between Vietnam and the RoK over the years, creating an environment where the two governments, business communities and peoples have been able to strengthen bilateral trade, economic and investment relationships,

Vietnam and the RoK notably began free trade agreement (FTA) negotiations this year. Once the pact is signed, it will offer numerous opportunities for the two countries to use and consume each other’s products. The RoK’s temperate farm produce will be available in Vietnam, while Vietnam’s tropical farm products will enter the RoK market.

Vietnam is currently implementing its 2011-2020 socio-economic development strategy, offering a host of opportunities for RoK businesses to invest in the electronics, automobile and machinery manufacturing industries.

Seafood exports to surf past $6 billion this year
 
The value of seafood exports this year are expected to inch up by about one per cent over last year to US$6.12 billion, the Ministry of Agriculture and Rural Development estimates.

The figure would fall short of the target of $6.5 billion set for the year, the ministry said, citing global economic difficulties, rising input costs, and capital shortages.

Seafood exports to the EU in the last quarter dropped sharply, declining by 12 per cent from the same period a year ago, while shipments to the US and Japan also declined roughly 1.5-2 per cent, according to statistics from the Viet Nam Association of Seafood Exporters and Producers (VASEP), reflecting a failure in the usual pattern of rising seasonal demand around the holidays.

The chairman of VASEP's shrimp committee, Ho Quoc Luc, said that shrimp exports this year faced major challenges since Japan increased testing for ethoxyquin levels in shrimp imported from Viet Nam. The US and South Korea have recently also stepped up testing of Vietnamese product, Luc said.

Many seafood producers have upgraded their aquacultural areas to meet the higher quality standards, he noted.

The general director of Caseamex Co in the southern province of Can Tho, Vo Dong Duc, said that his company's investment in aquaculture areas rose by about 20 per cent this year as the company took steps to comply with the higher standards of importing countries.

The ministry's General Department of Seafood has also said that it would enhance monitoring of seafood breeding and feeding practices next year to further enhance the quality of the country's seafood products.

Viet Nam among five biggest investors to Cambodia

Viet Nam is among the five biggest investors in Cambodia with 124 projects worth US$2.5 billion, the Association of Vietnamese Investors to Cambodia (AVIC) announced at a conference in Phnom Penh yesterday.

Over the past three years, Viet Nam's investment has contributed about five per cent to the Cambodian Gross Domestic Product (GDP) and created jobs for more than 30,000 Cambodian workers. Vietnamese enterprises also contribute significantly to social security in the neighbouring country.

The Vietnamese investors plan to increase their direct investment into Cambodia to $4 billion in 2015.

Addressing the conference, Cambodian Standing Deputy Prime Minister Men Som Ol praised Vietnamese businesses for helping Cambodia develop its economy and improve people's lives.

She went further to say that the Cambodian Government was determined to do its best to support the Vietnamese investors and promote bilateral investment, trade and tourism.

Statistics from AVIC revealed that Viet Nam had only 41 projects worth $566 million in 2010. But investment by the country's leading businesses such as Viettel, Vietnam Airlines, the Bank for Investment and Development of Vietnam caused the number of projects to more than double by the following year on total investment of $2 billion.

The major industries that Viet Nam has invested in are agriculture, forestry, rubber, energy, mineral mining, finance, banking, aviation and telecommunications.

The association also reported that total import-export turnover between the two countries is estimated to reach $3.3 billion this year, a year on year increase of 17.8 per cent.

Viet Nam's exports to Cambodia were worth about $2.52 billion in 2012, bringing the country to second place among 140 exporters to Cambodia.

Petrol, steel and garments are the major goods Viet Nam exported to Cambodia while rubber and tobacco are the primary goods Cambodia exported to Viet Nam.

The two countries aim to increase two way import-export turnover to $5 billion by 2015.

About 750,000 Vietnamese visited Cambodia this year, an increase of 25 per cent compared with last year. That puts Viet Nam at the top of the list for sending foreign tourists to the country.

Province draws foreign investors
 
The year 2012 wasn't a good one for Binh Duong Province, which welcomed more than 2,000 foreign-invested projects from 36 countries.

A Nhan Dan (People) newspaper report quotes Pong Kok Tian, Singapore's Consul General in HCM City, as saying it is one of the five leading provinces and cities in the country in terms of competitiveness.

The report also cites Do Nhat Hoang, director of the Ministry of Planning and Investment's Foreign Investment Agency, as saying several positive changes effected by the provincial administration had enabled Binh Duong to take the lead in attracting FDI.

Before 1995, FDI inflows were not remarkable, but from around US$382 million, it soared in the 1996-2006 to $1.6 billion. One year later, it was $2.9 billion.

This year, despite the volatility of the domestic and global economies, FDI inflow for Binh Duong has remained high, topping the national list with $2.6 billion, higher than in HCM City.

This is an impressive result that few provinces can match, the Nhan Dan report says, adding that it reflects the dynamism of the province and its ability to attract and retain competent investors.

Binh Duong People's Committee chairman Le Thanh Cung said all doors are always open to welcome investors and workers coming to Binh Duong.

Explaining the province's success in attracting FDI, Cung said that over the past several years, Binh Duong spent thousands of billions of dong to develop its industrial and urban infrastructure. This year alone, infrastructure investment was VND3.8 trillion ($182.6 million).

Cung said infrastructure was key to promoting industrialisation and urbanisation.

While maximising its existing strong points, local authorities have paid due attention to improving local services and the quality of human resources. It also simplified administrative procedures to make it easier for investors.

Previously, Binh Duong was primarily an agricultural economy, but the industrial and service sectors dominate now.

The local traditional agricultural sector is now shifting to a high-tech mode.

Cung said the province wanted to attract more investment into the hi-tech agricultural sector and focused on building industrial parks for developing supporting industries.

It aimed to decrease dependence on imports, especially in textiles and garment, wood processing and leather industries, he said.

In 1997, FDI enterprises contributed VND817 billion ($39.2 million) to the local budget. This year, this has increased to more than VND7.5 trillion ($360.5 million).

This year, despite the negative impacts of the global economic downturn, Binh Duong's exports reached $12.2 billion and it was the only province with a trade surplus of $2 billion. Products made in the province are consumed by 193 countries and territories.

Banks face threats despite improved balance sheets

The nation's banking system currently maintains a capital adequacy ratio of 14 per cent, well above the industry standard level of 9 per cent, but this doesn't mean that troubled banks are out of the woods yet, according to researchers from the Banking Academy at a conference here yesterday.

The capital adequacy ratio (CAR) measures the ratio of a bank's capital to its risks and is a figure that regulators track to ensure a bank can absorb a reasonable amount of loss.

With mortgage lending frozen in a declining economy, however, the ratio no longer reflected the exact situation for many banks, the researchers said. They suggested that the State Bank of Viet Nam ask commercial banks to begin publishing a more exact ratio, that of ownership capital to total assets.

The deputy head of the academy's Institute of Banking Research, Nguyen Duc Trung, said that the State Bank had this year succeeded in helping curb inflation at a reasonable level of about 6.8 per cent, while maintaining stable foreign exchange rates, increasing foreign reserves and slashing lending interest rates.

The central bank had also been successful in preventing dollarisation of the economy, he added.

While credit had grown at 11-37 per cent per year in recent few years, this year's slower economic growth of only about 5 per cent reflected low credit growth and slower flows of capital into production, researchers said.

They noted that inappropriate monetary policies over the last few years caused bad debts to accumulate to a total of about VND257-437 trillion (US$12-21 billion). They suggested that bad debts be classified into recoverable and irrecoverable debts, noting that recoverable amounts could be restructured and resolved.

The research group outlined some scenarios for economic development next year, with the worst case predicting growth of just under 5 per cent, inflation of 7.24 per cent and credit expanding at a rate of 9.7 per cent. The best-case scenario would see GDP increasing by 6 per cent, inflation hitting 9.29 per cent and credit growing by 15.31 per cent.

In an online discussion between the Government and local authorities yesterday, Deputy Prime Minister Vu Van Ninh said that nine fragile lending institutions nationwide had been placed under control and the restructuring plan of only one bank was awaiting Government approval. Bank restructuring was being carried out alongside the restructuring of State-owned enterprises, Ninh said.

Giants crush mom'n'pop retailers
 
Domestic retailers are unable to compete with their foreign counterparts because they lack the financial and managerial capacity to do so, industry insiders say.

A Thoi Bao Tai Chinh Viet Nam (Viet Nam Financial Times) report cites the Association of Viet Nam Retailers (AVR) as admitting that five years after becoming a member of the World Trade Organisation, Vietnamese retailers have not effectively taken advantage of the opportunities offered by the membership.

Meanwhile, foreign retailers have kept widening their presence in the country, using their superior capital capacity and experience to good effect, it says.

Importantly, they accepted initial losses in order to establish their presence in Viet Nam, Dinh Thi My Loan, AVR chairman said.

Loan also said that the inefficiency of Vietnamese retailers often meant high distribution costs and higher selling prices, making them less competitive.

Domestic retailers were also handicapped by the fact that they do not have the capital to invest in infrastructure, technology and human resources.

However, even with the disadvantages, Vietnamese retailers should have done better in the local market, Loan said.

For instance, she said, domestic retailers had failed to recognise their strengths and open more convenience stores in the country.

In this sector, Viet Nam lags far behind other countries in the region like Thailand and Indonesia.

Another development obstacle for domestic retail businesses is the weak support offered by the Vietnamese legal system, the Thoi Bao Tai Chinh Viet Nam report says without elaborating.

However, it does say that legal amendments allowed under WTO rules are needed to protect domestic companies.

Moreover, while other sectors have specific national development strategies developed by the government, the retail sector lacks such a masterplan, the report says.

Retail sales are predicted to increase by about 23 per cent per year until 2014.

With consumers showing an increasing preference for shopping at supermarkets and convenience shops, domestic investors should pay attention and take advantage of this trend, the report says.

It also cites experts as saying Government should encourage more investors from other sectors to invest in trade centres and markets.

The Government should do more to assist domestic businesses gain access to prime retail spaces, the report says.

For their part, retailers must strengthen co-operation with distributors and producers to establish and develop their trademarks.

This will not only strengthen domestic retailers, but also help the Government manage the retail market better, the report says.

Logistics impede rural distribution

Industrial goods from rural areas have encountered many challenges in accessing modern distribution channels due to their lack of distinct brands, industry representatives said at a conference in Ha Noi last week.

Currently, rural industrial products are mainly distributed via traditional channels, so they are not yet present in big supermarkets.

Many rural industrial producers were small, with inadequate financial capacities, so they faced many difficulties in distributing their goods, said vice chairman of Ha Noi Leather and Footwear Association Dinh Anh Tuan.

It was also difficult for rural industrial goods to compete with those from other countries due to their comparatively poor designs, said Big C Supermarket Deputy General Director Nguyen Thai Dung.

Dung called for rural industrial producers to make further investments in improving product quality and offering more appealing designs.

They should also draw up effective marketing and advertising strategies before attempting to sell their products to big supermarkets, he said.

Vu Thi Hau, Deputy General Director of Nhat Nam Joint Stock Co, which owns the Fivimart supermarket chain, described selling goods at supermarkets as the fastest way for producers to advertise their goods.

To do so, the businesses had to procure seven certificates dealing with food safety and hygiene conditions and product qualifications, Hau said, which took significant time.

Consumers generally stick to buying products with recognizable trademarks, so firms should focus on developing their brands and reducing production costs so they could offer goods at cheaper prices and improve the design of their products, she said.

Deputy Minister of Industry and Trade Ho Thi Kim Thoa pledged that the ministry and relevant sectors would continue to help domestic enterprises providing rural industrial goods to access modern distribution channels.

Local experts also suggested that the industry's promotional activities should focus on building brands for products of traditional craft villages. Localities must invest more in production, ensure consistent product quality and expand their distribution networks, they said.

Construction begins on largest fertiliser plant in Cambodia

Viet Nam's Five Star Group yesterday cut the ribbon of its new US$65 million fertiliser plant in Kean Svay District, Kandal Province, Cambodia.

It is the biggest fertiliser plant in Cambodia to date, and will be developed into the most modern fertiliser plant in Southeast Asia.

The plant, covering an area of 10.9 hectares, can produce about 300,000 tonnes of NPK fertilisers per year during phase 1 and will increase to 500,000 tonnes during phase 2.

According to chairman of the Five Star Group Tran Van Muoi, the factory's NPK fertilisers would meet 50 per cent of the demand of Cambodia market, adding that the products of Five Star factory met international standards and were suitable for Cambodia's land and crop plants.

Muoi added that the group would also provide Cambodian farmers with new farming techniques and optimal agricultural production processes to help increase crop yields and productivity.

The plant, a joint venture between the Five Star Group and the Cambodian Investment and Development Company, began construction in December 2009 under the co-operation programme between the two countries.

Speaking at the opening ceremony, Cambodian Prime Minister Hun Sen highly appreciated the investment projects of Viet Nam into Cambodia, including the Five Star's fertiliser plant, which helped create jobs, contribute to Cambodia's budget and social security programmes, while strengthening co-operation between the two countries.

He believed the Five Star Group plant's high-quality products would contribute to the sustainable development of the Cambodia agricultural sector and improve the lives of locals and the prosperity of the country.

The Government of Cambodia encouraged foreign direct investments into the country, he said at the ceremony.

Viet Nam was among the country's top five biggest investors.

Income tax exemptions to rise

The National Assembly passed the revised Law on Personal Income Taxation on November 22.

Under the new provisions, the personal exemption per taxpayer shall increase to VND9 million (US$429) per month or VND 108 million ($5,143) per year, a substantial increase from the current VND4 million ($190) per month or VND48 million ($2,286) per year. The exemption for each dependent will rise from the current VND1.6 million ($76) per month to VND3.6 million ($171) per month.

The revised law also adjusts tax rates based on the consumer price index (CPI). Accordingly, if inflation rises by more than 20 per cent from the date the law takes effect on July 1, 2013, the Government may ask the Standing Committee of the National Assembly to further increase exemption levels.

The new law also removes some kinds of income from the category of taxable wages and salaries, including remunerations of all kinds; sums earned for participation in business associations, boards of directors, control boards, management boards and other organisations; monetary or non-monetary benefits received by taxpayers; and bonuses and rewards.

Foreigners to be able to join co-operatives

The National Assembly passed an amended Law on Co-operatives on November 20. Unlike the 2003 version of the law, the new law allows foreigners who legally reside in Viet Nam and are age 18 or older and have fully civil capacity to become members of co-operatives.

Under the law, a co-operative is defined as a collective economic organisation with legal status, jointly owned and voluntarily formed by at least seven members who co-operate in production and other business operations to meet the common demand of the members on a basis of individual control, responsibility, equality and democracy in co-operative management.

To become a member of a co-operative, the foreigner must (i) need to co-operate with members to use the products and services of the co-operative; (ii) voluntarily join and approve the charter of the co-operative; (iii) contribute capital to the co-operatives but not exceeding 20 per cent of the co-operative's charter capital; and (iv) comply with conditions of the charter.

The law also provides for termination of member status by death, absence, or restriction or loss of civil capacity, such as through imprisonment; voluntarily leaving the co-operative; expulsion from the co-operative; failure to contribute capital as committed; and in other cases. The power to terminate member status will belong to the board of management or general members meeting in each case.

The new law takes effect next July 1.

New rules on taxation of imported goods

The President promulgated the revised Law on Tax Administration on November 20. The law requires enterprises importing raw materials for production to: (1) produce the goods to be exported in Viet Nam; (2) be engaged in import-export operations for at least two consecutive years from the date of registration of customs declarations without committing acts of trade or tax fraud and without owing overdue taxes or fines; (3) comply with laws on accounting and records; and (4) make payments through the banking system in accordance with Vietnamese law. If an enterprise fails to meet these requirements, it must provide a guarantee of tax payments from a credit institution.

Taxes on good temporarily imported for re-export must be paid in advance under the new law, unless taxes are guaranteed by a credit institution. Taxes on other goods must be paid before customs clearance or before the goods are released.

The new law, which also contains provisions on periodic tax payments, takes effect next July 1.

FPT breaks $100 million profit barrier

Software giant FPT posted pre-tax profits of over VND2.1 trillion (US$100 million) in an end-of-year statement.

FPT also said its revenue up to the end of November exceeded VND21.8 trillion or $1 billion while the net profit of its mother company reached VND1.364 trillion ($65 million), equating to earnings of VND5,019 ($0.24) per share.

The corporation's trading on services (telecommunication, IT, online service) and software were able to maintain growth of around 30 per cent.

Mai Linh to sell 1,000 cabs to reduce debts

Taxi operator and transport company Mai Linh Group intends to sell 1,000 old cabs next year to pay its investors, according to chairman Ho Huy.

Huy said the sales plan could only be implemented next year, as Mai Linh needs to maintain its market share in the last days of 2012.

The sale of 1,000 taxis, whose values range from VND150 million ($7,000) to VND400 million ($19,000), is expected to earn the company VND200-300 billion ($9.5-14.3 million).

Mai Linh has also sold 200 of its 500 express buses to recoup capital for debt payments and investment in the low-cost taxi sector.

Wood processing firms struggle in local market
 
"While the export market is being successfully exploited, the domestic market has been left wide open," said Nguyen Chien Thang, chairman of the Handicraft and Wood Industry Association of HCM City (HAWA).

To address this gap, many wood processing companies facing slumping purchasing power in international markets have recently shifted to focus on the domestic market. But these firms are finding it difficult to defend their own turf.

Choosing a suitable segment and building up effective distribution channels were the two biggest challenges facing wood enterprises, who usually paid attention to fulfilling processing contracts for foreign partners rather than surveying the local market, said Deputy Director of Duc Thanh Wood Processing Co Le Hong Thang.

The domestic market held rich potential for wood processing firms. However, the majority of the population was located in rural areas, where many businesses lacked sufficient funds to expand their distribution channels, said Truong Thanh Furniture Corp chairman Vo Truong Thanh.

In order to develop in the domestic market, the firms should create long-term business plans, Thnh said, emphasising the importance of building up effective distribution systems.

Vietnamese firms have lost their market share to foreign wood companies due to capital shortages, so they struggle to develop luxury wooden goods that can compete with those provided by foreign companies, local experts said.

The firms' deeply-rooted dependence on imported raw materials, which makes their products more expensive, and their weaknesses in market research, design and distribution worsen the problem.

Domestic wood enterprises should implement a supply chain that includes more technical innovations, these experts advised.

Viet Nam ranks fourth among Southeast Asia's wood exporters, but just 20 per cent of the wood products consumed in the country are produced by Vietnamese enterprises, according to HAWA statistics.

The remaining 80 per cent of wood products in the country are imported from mainland China, Hong Kong, Thailand and Taiwan.

HAWA also predicted that the domestic consumer demand would increase by about 15 per cent per year. Demand for wood products for high-end apartments in HCM City and Ha Noi totals millions of dollars annually.

"Vietnamese enterprises should acquaint themselves better with domestic consumer tastes. If they focused on high to average income segments, they could definitely dominate the domestic market, instead of wrestling over foreign markets," Thang said.

Returning to the domestic market would help businesses to diversify their markets, limiting risks and resulting in higher profits, he said.

Pipeline increases gas output
 
Gas exploitation through the Nam Con Son Gas Pipeline is expected to reach 6.2 billion cu.m by the end of this year, according to general director of the Nam Con Son Gas Pipeline Hoang Minh.

During its 10 years of operation, about 45.1 billion cu.m of gas traveled through this gas system, Minh said.

Nam Con Son Gas Pipeline, the first gas project in Viet Nam, came into operation in early 2003 to transport natural gas from Blocks 06.1, 11.2 and 12W in the Nam Con Son basin to the Dinh Co Gas Processing Plant (Nam Con Son Terminal) in southern Ba Ria - Vung Tau Province.

Dry gas from this terminal then travels through pipelines to Phu My Gas Distribution Centre, from where gas is distributed to power plants and other gas consumers, while gas condensate is transported to the Thi Vai terminal for domestic consumption or export.

The current maximum capacity of the pipeline is about 21 million cu.m per day, a significant increase from its initial capacity of just over 10 million cu.m per day.

Gas from two new blocks, 05.2 and 05.3 (Hai Thach and Moc Tinh fields), is expected to be delivered to shore from the third quarter of next year.

"The more gas we receive, the more difficult it is to stop the flow," Minh said, emphasising the importance of keeping gas flowing continuously.

The Nam Con Son Gas Pipeline (NCSP) contributed 30-35 per cent of the country's total power supply, Minh said.

He said if the gas processing plant were forced to shut down and power plants had to use oil to generate energy, costs would go up VND400 billion (US$19 million).

He also said the Government planned to build a $1.3 billion pipeline, Nam Con Son-2, if consumer demand grew substantially.

NCSP is currently owned by PetroVietnam (51 per cent), TNK Viet Nam (32.67 per cent) and Conoco Phillips (16.33 per cent). TNK Viet Nam took over assets of BP in Viet Nam and has been involved in oil and gas exploration and production in Viet Nam from October 2010.

TNK Viet Nam is part of the TNK-BP group, Russia's third-largest oil company, which is equally owned by the UK company BP and the AAR consortium (Alfa Group, Access Industries and Renova).

In addition to BP's 32.67 per cent stake in the NCSP, TNK-BP acquired an additional 35 per cent stake from BP in Block 06.1 and became its sole operator.

Of all the gas fields that currently supply the pipeline, the major one is Block 06.1 (consisting of Lan Tay and Lan Do gas fields), with a production capacity of about 4.7 billion cu.m per annum.

The two fields have combined reserves of 58 million cu.m. While Lan Tay received its first gas in November 2002 and currently supplies about 15 million cu.m of gas a day, Lan Do received its first gas this October. With a daily exploitation of over 5 million cu.m, Lan Do is expected to offset Lan Tay's production decline.

"We're satisfied with the buyout of BP's assets in Viet Nam, not only because we have inherited its assets (human resources and technology), but also because the move will help us access business opportunities in Viet Nam," said Hugh J McIntosh, TNK Viet Nam's president and general director.

McIntosh said TNK Viet Nam was looking at opportunities within the basin and in other areas, not only in gas but also in the oil business. He said the company was in negotiations with other partners but refused to disclose further information.

HCM City agricultural park leads the way
 
Provinces planning to develop agricultural technology parks should learn from HCM City's experiences in building its Agricultural Hi-Tech Park, Deputy Prime Minister Nguyen Thien Nhan has said.

HCM City built the country's first agricultural technology park, with the Cu Chi District-based facility taking nearly 10 years from actual conception to operation.

Speaking at a meeting with the park's management last week Nhan said 13 agricultural parks are being planned around the country.

The Cuu Long (Mekong) Delta province of Hau Giang has recently received approval from the Government to set up a 4,200ha agricultural hi-tech park.

The HCM City park should become a spearhead for growth in the Mekong Delta and south-eastern region, Nhan said.

The 88.17ha park has so far attracted 14 investors who will invest VND450 billion (US$21.6 million) and lease most of the 60ha available inside, according to its management.

The park has also set up a Research and Development Centre for Agricultural High-Technology and a Centre for Business Incubation of Agricultural High Technology.

They have tied up with domestic and foreign universities and institutes to provide training and transfer high-tech farming models.

In more than two years of official operations, the park has transferred 15 production models to more than 20 individuals and organisations in HCM City and neighbouring provinces, according to the management.

It has also trained 582 people in using high-tech farming techniques and supplied to the market 54 tonnes of high-quality hybrid seeds for various vegetables and fruits, including gourds, red chilly, and cucumber.

Investors in the park have created 16 production models and sold 13 of them, including those for planting certain kinds of mushroom.

The city plans to set up more agricultural technology parks for aquaculture and animal husbandry in Cu Chi, Binh Chanh, and Can Gio districts by 2015.

Beer market readies for upcoming Tet holiday
 
The supply of beer for the Tet (Lunar New Year) holiday is expected to be more than sufficient and prices will remain unchanged, according to traders in HCM City.

Even though the holiday season has begun, beer prices have not gone up, as output has increased and demand has declined this year.

A beverage trader in District 3's Nguyen Thong Street said the price of most beer such as Heineken, 333 and Tiger had not changed.

Another trader in HCM City said she was not planning to buy large reserves of beer this year because of the abundant supply. Her only concern would be a lack of clients, she said.

Because demand for beer has declined this year, supply is expected to be ample even during the peak season of Tet.

Mai Le Xuan Huy, a beer trader in Tan Binh District, said there was more than enough domestic beer and 50 kinds of imported beer available on the market.

The prices for beers imported from Belgium, Holland, Germany, Japan and the US are expected to remain the same during the holidays.

Beer from Japan remains one of the most popular because of its taste and reasonable price.

Huy pointed out that beers often given as presents had been marked up by retailers and that customers should carefully check prices before buying.

Like beer sellers, beer producers have also said that supply would be abundant for the holidays and that prices would remain unchanged.

Le Hong Xanh, general director of Sabeco Trading Company Ltd, told Tuoi Tre (Youth) newspaper that his company had prepared 350 million litres of beer for Tet. Of that amount, 125 million litres are the 333 beer brand.

Xanh said the company had increased production by 10 per cent compared with last year. He predicted that demand would pick up in the run-up to Tet.

Le Tan Hung of the Viet Nam Brewery Limited told Tuoi Tre that his company would increase production by 20 per cent compared to last year, even though purchasing power had declined this year.

S Korea firm eyes health food venture in Viet Nam

Korean company CJ Freshway has signed a memorandum of understanding with Hoa Lam Investment and Development Company for establishing a joint venture in Viet Nam.

The planned JV, which will be in the food business, especially health foods, targeted at office workers and sick people, will have an initial chartered capital of US$300,000.

Hoa Lam is developing the 37.5ha Hoa Lam Shangrila Hi-tech Medicine Area Project in HCM City, which will have six hospitals, laboratories, and healthcare training centres besides serviced residential projects.

The first phase of the 320-bed Thanh Do International Hospital will begin operations early next year and be managed by Singapore's Parkway Health Corp.

HCM City to host international sport, leisure expo

The first international Sport and Leisure exposition, Sportex Viet Nam 2013, will be held at Tan Binh Exhibition and Convention Centre in HCM City from May 9-12.

More than 100 local and international exhibitors will display indoor and outdoor sport equipment, leisure and health and fitness facilities and water sport and entertainment facilities.

Tang Ba Le of the city's Department of Culture, Sports and Tourism said the city had high demand for quality sporting goods.

Co-organised by the department and the Minh Vi Exhibition and Advertisement Services Co, Ltd, the event is expected to attract more than 3,000 visitors.

Rural provinces provide price-stabilised goods

Businesses have started to bring in price-stabilised goods for the upcoming Tet (Lunar New Year) festival, particularly in rural and mountainous areas.

The Mountainous Services Centre of the central Binh Thuan Province's Board for Ethnic Groups has offered nearly 35 kinds of price-stabilised goods worth VND5 billion (US$240,000) to mountain areas.

Popular products, including rice, salt, and cooking oil have been sold in 11 mountainous districts of Bac Binh, Ham Thuan Bac, Ham Thuan Nam, Tanh Linh and Tuy Phong.

They are all being sold at the current market rate or up to five per cent lower.

The centre's director Ta Huu Phuc said the amount of goods sold in these areas had increased by 20 per cent in comparison with 2011.

Prices would be maintained even if the market rate went up in the run-up to Tet, he said. But if the market price fell, that would be reflected in prices of goods under the stabilisation programme.

In the southern province of Binh Dinh, 37 enterprises have registered to provide price-stabilised products to local customers, including food, household goods, electronics and garments and textiles.

These businesses have committed to offer customers discounts of 5-49 per cent.

The People's Committee of the Central Highlands province of Kon Tum has earmarked VND16 billion ($768,000) to provide businesses with interest-free loans to prepare commodities for the provincial price-stabilisation programme.

Local businesses have stockpiled goods with a total capital of VND109 billion ($5.2 million).

Foreign direct investment hit by international economic woes

Foreign direct investment (FDI) pledges into the country this year decreased 18 per cent to US$12.7 billion due to the global economic slowdown, according to the Ministry of Planning and Investment.

This amount includes $7.8 billion in registered capital for 1,097 new projects and $4.9 billion in additional registered capital for 406 existing projects.

This year's FDI inflow inched down by 5 per cent against last year to $10.5 billion.

Director of the ministry's Foreign Investment Agency Do Nhat Hoang said that FDI in manufacturing and processing sectors- the focal points of Viet Nam's FDI attraction policy, had increased remarkably this year.

According to the ministry, manufacturing and processing were the most attractive industries to foreign investors this year with a registered capital of $8.9 billion, accounting for 70 per cent of the country's total registered capital. Several large projects are taking shape in these industries, including an $870 million electronic components project supervised by Taiwan's Wintek and an $830 million mobile phone project for South Korea's Samsung.

The real estate industry followed closely behind with $1.8 billion, 14.5 per cent of the country's total registered capital.

The ministry reported that Japan remained the country's largest investor with total registered capital of more than $4 billion, followed by South Korea, Hong Kong and Singapore.

The southern province of Binh Duong was the most attractive destination to foreign investors this year with more than $1.63 billion, making up 20.9 per cent of the country's total registered capital. The northern city of Hai Phong, the capital city of Ha Noi and the southern province of Dong Nai followed with more than $1.11 billion, $618.8 million and $468.7 million, respectively.

Planning and Investment Minister Bui Quang Vinh said that the country's goal for FDI pledges next year would be $14-15 billion, of which $10-11 billion would be disbursed.

As the continuous global economic slowdown could affect the country's FDI attraction target, experts recommended that the country intensify administrative procedures to ease investors' spirits.

Human resource development, especially in the areas of science and technology, could also make the country more attractive to foreign investors, experts said.

Mining projects fall behind schedule

Three-quarters of the eight iron ore mining and processing projects in central Thanh Hoa Province are reported to be 1.5-2 years behind schedule, according to the provincial Department of Industry and Trade.

Meanwhile, the remaining two projects, which produced ferocrom and iron ore, have been postponed as a result of ineffective operation.

These projects have total investment capital of US$195 million with a total capacity of producing 295,000 tonnes of ferocrom and 290,000 tonnes of iron each year.

Backward technology and inefficient production lines were the main culprits, said director of the provincial Department of Industry and Trade Hoang Van Hung.

Meanwhile, investors failed to fully assess the reserves and quality of material zones, so they faced material shortages after only a short period of operation.

In order to help these businesses overcome their difficulties, the department has proposed extending the deadline for slow projects, while the provincial Department of Science and Technology says it will help firms by offering feedback on their production lines.

The provincial People's Committee also plans to create favourable conditions for businesses to speed up their projects, including land clearance and electricity supply.

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