Phones, accessories climb to top exports at $21.5b

Viet Nam's export turnover of phones and accessories reached US$21.5 billion this year, ranking first among the country's export items.

Figures from the General Customs Office (GSO) showed that turnover of exported phones and accessories posted a 69.2 per cent year-on-year rise.

These exported products have seen the highest growth rate and turnover in the past five years.

The office said exports of phones and accessories this year surpassed the garment and textile sector, topping the list of the country's export staples.

The garment and textile export turnover was $17.9 billion this year, followed by computers and spare parts, which were listed at $10.7 billion.

Exports of phones and accessories accounted for one-fifth of the country's total export turnovers, and one-half of the trade sector's growth, said the office.

Further, export turnover of these items was $300-400 million monthly in previous years, reaching $1.3 billion in July 2011.

Le Thi Minh Thuy, head of GSO's Trade and Service Statistics Department, told VnExpress online newspaper that the sharp increase in exports of phones and accessories was attributed to the contribution of Samsung Electronics Viet Nam, which made up 98 per cent of the country's exported mobile phones and accessories last year.

Also, these items contributed 20 per cent to the country's total export turnover, Thuy added.

Agro-forestry and fisheries hit $27.5b

Viet Nam's agro-forestry and fishery exports this year climbed a marginal 0.7 per cent year-on-year to about US$27.47 billion, the Ministry of Agriculture and Rural Development said.

The ministry noted that seafood remained the country's top export industry, earning $6.7 billion in 2013. The staple fetched nearly $620 million in December alone.

The US remains Viet Nam's biggest seafood market, accounting for 22 per cent of total exports. Seafood exports to China, Canada and Thailand increased by 63 percent, 33.6 percent and 7.5 per cent, respectively.

In 2013, the forestry industry contributed $5.37 billion to the country's exports by value, up 15.2 per cent from last year.

While seafood and forestry exports surged in 2013, the export earnings of some important farm products declined 11.9 per cent to $13.1 billion.

The situation was due to global market fluctuations and unfavourable weather conditions, the ministry said, adding some important agricultural products, such as rice, coffee, tea and cassava, experienced a considerable drop in both the value and volume of exports.

The country shipped 1.32 million tonnes of coffee abroad for $2.75 billion, which is down 23.6 per cent by volume and 25 per cent by value compared with last year. Germany and the US are Viet Nam's largest coffee importers, accounting for 13 per cent and 11 per cent of the country's totals, respectively.

Rice exports also suffered the same trend, declining 17.4 per cent by volume to 6.61 million tonnes and 19.7 per cent by value to $2.95 billion. By contrast, export earnings by value from cashew nuts and pepper jumped considerably.

Cashew nut exporting companies generated $1.63 billion from delivering 257,000 tonnes of output this year, up 15.8 per cent by volume and 9.7 per cent by value.

VN-Chile FTA set to boost Latin America exports

The free trade agreement (FTA) between Viet Nam and Chile, which comes into effect on January 1, will open markets to Vietnamese exports in Chile and much of Latin America.

The FTA will allow many Vietnamese products, including footwear, fine arts and handicrafts, fertiliser, furniture and household utensils, to enjoy zero import tariffs in the Chilean market, said Vietnamese trade counsellor to Chile Tran Dinh Van.

The tax cut would also help sharpen the competitiveness of Vietnamese goods, compared to other Asian countries of similar strength, Van said.

He added that Chile and other Latin American countries were not as demanding as Japan and the EU, so Vietnamese products would find it easier to penetrate these markets.

Since 2010, Vietnamese exports to Chile have grown by more than 20 per cent annually, estimated at US$250 million by the year-end.

However, both countries' managerial agencies said that their trade performance hasn't matched its potential. Director of the American Market Department under the Ministry of Industry and Trade (MIT) Nguyen Duy Khien noted that Chilean businesses prefer to do business with partners from countries having FTA's with Chile. Therefore, trade with Vietnamese businesses has not been promoted in the past.

In order to take advantage of Chile as well as other markets in the region, domestic businesses should carefully consider factors, including their geographical locations, in order to reduce costs. They also suggested that domestic businesses contact Vietnamese trade offices in Latin America to receive support for their promotion plans.

Commission certifies open-ended fund

The State Securities Commission (SSC) has officially granted Vietcombank Fund Management (VCBF) a certificate to register and establish the VCBF Tactical Balanced Fund.

The first trading date of the VCBF Tactical Balanced Fund will be January 2.

The VCBF Tactical Balanced Fund is the first open-ended fund from VCBF which is a joint venture of Vietcombank and Franklin Templeton Investments, a leading global fund management company.

It is also the first open-ended fund in Viet Nam that will invest in both equity and fixed-income securities.

The fund's benchmark return is the average of the VN-Index change and 10-year government bond return.

"We had a relatively short IPO period of just six weeks ending successfully on November 29, and raised nearly VND61 billion (US$2.9 million) from a total of 290 investors," said Avinash Satwalekar, the management firm's CEO.

"We believe now is the good time to invest in Viet Nam as equity valuations are very reasonable when compared to the growth opportunities. As the Vietnamese economy stabilises, we expect these growth opportunities to accelerate," he added.

Meanwhile, fund management company Eastspring Investments Viet Nam, owned by life insurer Prudential Viet Nam, began on December 24 selling five million units for its open-ended Eastspring Viet Nam Navigator Fund. Buyers will pay the at par price of VND10,000 ($0.47).

Thanh Hoa top choice for Japanese funds

Central Thanh Hoa Province leads the country in attracting Japanese investment, accounting for US$9.68 billion out of the total of $33.06 billion.

Of the five largest Japanese businesses in Viet Nam, two are in this province, the Nghi Son Oil Refinery and Nghi Son Cement plant.

The local advantages like strategic location, cheap human resource, and abundant mineral resources are appreciated by the Japanese investors.

The Japan Trade Promotion Organisation said Thanh Hoa should focus on infrastructure, especially the expressway running from Thanh Hoa town to Nghi Son and infrastructure at industrial parks for small- and medium-sized enterprises.

Firms owe millions in insurance premiums

Total insurance debt owed by businesses has reached VND10.66 trillion ($506.30 million) this year, a rise of 22 per cent year-on-year, according to the Viet Nam Social Insurance Agency.

Mai Duc Thang of the agency said this figure included social insurance debt of more than VND7.93 trillion ($376.67 million) and health insurance debt of VND2.91 trillion ($138.32 million).

According to Thang, the total insurance debt, last recorded as of November 30, is owed by large corporations as well as businesses that have been dissolved or those whose business licenses have been revoked.

The Social Insurance Agency has sued more than 1,800 businesses that owe social and health insurance totalling VND977 billion ($46.41 million). Of that amount, the agency has reclaimed VND277 billion ($13.16 million).

Commercial overseas offices urged to promote trade

Vietnamese commercial counsellors abroad need to work more closely with organisations and localities in Viet Nam to promote trade, officials said at a meeting on Wednesday in HCM City.

Ho Quoc Dung, deputy chairman of central Binh Dinh Province's People's Committee, said information and forecasting was very important to local businesses.

Viet Nam's commercial offices and commercial counsellors abroad should establish an information channel to provide prompt information to local businesses, he said.

Localities also need the support of Viet Nam's commercial offices abroad to promote local products, give advise on legal issues in sale contracts and overseas investment, and verify foreign partners, he said.

Commercial counsellors said they lacked information about local businesses.

Dao Tran Nhan, Viet Nam's commercial counsellor in the US, said business partners in the US had often asked for more information about Viet Nam's exporters.

"We only have information of businesses listed by the Ministry of Industry and Trade," he said.

Municipal and provincial departments of Industry and Trade should ask local trade promotion centres to establish lists of reputable local businesses in each sector, he said.

Y Dham Enuol, deputy chairman of the Dak Lak Province People's Committee, said that local departments of Industry and Trade and commercial counsellors abroad should establish a formal connection so that information about foreign markets and technical barriers would be readily available.

Nguyen Thi Hong, deputy chairwoman of the HCM City People's Committee, said with the increase in technical barriers, Viet Nam's commercial offices abroad and local agencies should have the latest information to avoid commercial disputes with foreign partners.

Tran Tuan Anh, deputy minister of Industry and Trade, said the ministry would take into consideration the opinions of participants and develop better ways for all parties to communicate.

The country exported goods totally worth US$132 billion this year, up 15.4 per cent against last year, exceeding the National Assembly's target of 6.6 per cent, according to the Ministry of Industry and Trade.

VietJetAir launches Vinh-Da Lat route

VietJetAir has introduced its 16th route, connecting Vinh City in central Nghe An Province, the birthplace of Uncle Ho, and Da Lat, the City of Thousand Flowers.

On the occasion, to attract visitors to the city, the airline also sponsored three important cultural events: the launch of the 2014 National Tourism Year with a focus on the Central Highlands, the 120th Anniversary of Da Lat, and the 5th Da Lat Flower Festival, he stated.

With three flights per week, on Tuesdays, Thursdays and Saturdays, the new route offers 1,080 seats per week and is expected to meet the travel demand.

Ministry revamps investment planning

Starting next year, public investment project plans will be formulated every two years instead of every year as is currently done, Planning and Investment Minister Bui Quang Vinh told Vietnam News Agency in a recent interview.

He said the move is part of efforts to restructure the planning process for public investment projects so that they become more efficient and less wasteful.

"The Government's decision has been welcomed as one that will increase transparency and accountability in the use of public funds, while avoiding corruption and wastage," Vinh said.

He said the new measure builds on provisions of a prime ministerial resolution issued in February 2011 that was a policy milestone, marking the nation's switch from a focus on rapid development to a more suitable pace in the context of the world economic downturn that had significantly impacted Viet Nam.

The resolution had eight major areas of focus including curbing inflation, stabilising the macroeconomy, ensuring social security and achieving a rational growth rate, Vinh said.

One of the eight areas listed was investment, with the resolution tightening monetary policy and strictly controlling public investment.

"After three years of implementing the PM's resolution, our macroeconomy has gradually been stabilised and inflation has been brought under control," Vinh said.

He noted that in October 2011, the Government had issued fresh instructions on strengthening management and use of State budget funds as well as Government bonds in public investment.

"In 2013, ministries, sectors and localities nationwide have done their best to continue implementing the instructions. While the problem of fragmented and inefficient investment still remains, the situation is much better than it was in the past."

Noting that 2014 will be the first year Viet Nam introduces the "new public investment mechanism," Vinh said it will possibly prevent corruption and power abuse through information disclosures throughout the construction process.

He said the Government has already approved the first two-year (2014-15) investment plan for all ministries, sectors and localities nation-wide.

He said that in 2013, up to 96.5 per cent of capital investment allocated from the central budget to localities has disbursed to implement the 2013-14 plan.

In 2014, this percentage will be even higher, an indication the ministries, sectors and localities have all realised the benefits of the PM's decision, he said.

"I am hopeful that outstanding debts in capital construction will reduce quickly in 2014, reflecting efficient management of public investment."

Vinh said that as a general rule that applies not just in Viet Nam but other countries as well, State budget funding of public investment will be downsized in the coming years. Therefore, another important measure the government will introduce soon will aim to mobilise capital for infrastructure construction and public services from other sources, he said.

"We should open a new chapter on non-state economic sectors participating in public investment, particularly the private sector."

Vinh said his ministry was currently drafting a legal document to promote public-private partnership in public investment.

He said the new decree will try to synthesize provisions of implementation Decree 108 on the Law on Investment as well as Decision 71 on piloting Public-Private Partnership projects.

"In the PPP Decree, we want the participation of both State-owned Enterprises (SOEs) and foreign corporations. This is the most important aspect of the document as we want to have more human and capital resources to invest.

"When the PPP Decree comes into force, the State Budget will only provide counterpart funds for projects.

"This is very important decision in the strategy to mobilise more investment for mid and long-term projects," Vinh emphasised.

Ben Tre pledges optimum conditions for Russian firms

The southern province of Ben Tre welcomes and will provide all possible conditions for Russian businesses to invest in the locality, said Chairman of the provincial People’s Council Nguyen Thanh Phong.

Receiving a Russian Duma delegation led by First Vice President of the Russian State Duma Ivan Ivanovich Melnikov on December 26, Phong said the province has strengths in agriculture and sea-based activities.

There are seven local businesses exporting copra, activated carbon and tra fish fillets to Russia while two Russian enterprises are investing in fish farming in nearly 100 hectares in the locality.

The Russian guests showed interests in Ben Tre’s coconut product production and export.

During the visit, Melnikov and his entourage visited a copra factory of the Ben Tre Export Import Joint Stock Company, which shipped 700,000 USD worth of products to Russia over the past 11 months.

The Russian delegation also visited a coconut plantation of Nguyen Huu Tin in Tam Phuoc commune, Chau Thanh district.

Earlier on December 25, the delegation paid a working visit to the southern province of Ba Ria-Vung Tau to explore cooperation opportunities.

They began their working visit to Vietnam on December 23.

Vietnam-South Africa trade to hit 875 million USD

Two-way trade between Vietnam and South Africa is expected to reach 875 million USD in 2013, up nearly 17 percent from the previous year.

Of the sum, export revenue stands at 760 million USD and import value, 115 million USD, respectively.

Vietnam’s major export items to South Africa – the country’s largest trade partner in Africa include footwear, garment and textiles, rubber, rice, coffee, pepper, cashew nuts, and chemicals.

Over the past two years, mobile phones have made significant contributions to the country’s export turnover to South Africa.

Meanwhile, South Africa mainly ships metal, chemicals and materials in service of the garment and textile and footwear industries to Vietnam.

The outcomes mirror the two Governments’ resolve and efforts to promote their all-round cooperation, especially economic and trade ties.

According to Vietnamese Commercial Counselor in South Africa Le Kinh Thang, the two countries still boast a lot of potential for trade cooperation, suggesting them pay more attention to business environment and commercial competitiveness.

He called on Vietnamese businesses to access the South African market in order to explore the country’s demands, considering the organisation of trade fairs as the most effective way to realise such efforts.

HCM City aided to increase ties with Chinese localities

Newly-accredited Chinese Consul General in Ho Chi Minh City Chai Wenrui has affirmed his support for Vietnam’s largest economic hub to link with Chinese localities in business and tourism.

The Chinese diplomat made the affirmation at a December 26 reception given by Secretary of the municipal Party Committee Le Thanh Hai.

The guest also vowed to spare no effort to further expand the comprehensive strategic cooperative partnership between the two nations.

The municipal leader said he believes that Chai Wenrui will contribute greatly to boosting the ties between Vietnam and China.

In 2013, the two countries saw positive developments in their relationship, with their high-ranking leaders reaching common perceptions and important agreements on deepening the comprehensive strategic cooperative partnership.

The two sides have reached important perceptions to develop their cooperation in a stable and healthy manner, he said, adding that they have agreed to set up three working groups on sea, land and financial-monetary issues.

The two sides have pledged to hasten the operations of the three groups to increase the number of Chinese investment projects in Vietnam, especially in transport infrastructure, and increase bilateral financial-monetary cooperation.

By October, 2013, two-way trade between Vietnam and China hit about 41 billion USD, up 31.7 percent over the same period last year. The year’s goal is 50 billion USD.

Both sides pledged to work together to reach 60 billion USD in two-way trade by 2015.-

Trade ministry teams up with An Giang to promote trade

A memorandum of understanding (MoU) on trade promotion was inked between the Ministry of Industry and Trade (MoIT) and the People’s Committee of southern An Giang province on December 26.

This is part of efforts to help the province realise its target of earning 1 billion USD from export in 2014.

Under the document, the MoIT will assist An Giang province in promoting trade in the country through fairs and conferences.

Both sides will work together to seek markets for local farm and aquatic products, which are An Giang’s competitive commodities.

The ministry will also provide An Giang’s enterprises with information on the export market development and demand to help them fully tap their strengths to speed up export.

Speaking at the event, MoIT Deputy Minister Nguyen Cam Tu underlined the significance of the MoU, expressing his belief that the ministry and An Giang province will cooperate effectively in the future.

Construction of north-south express railway re-proposed

Major changes are expected for Vietnam’s railways if plans to double transport capacity by 2020 are to be reached.

There were reportedly two reasons the Ministry of Transport (MoT) forwarded Statement 13.669 on revisions to the railway development strategy to 2020 with a vision toward 2050 to the Prime Minister.

Firstly, current railway transport capacity lags far behind the target set in the railway development strategy, approved in a decision passed in November 2008 (Strategy 1686).

Accordingly, railway transport makes up only 0.5 percent of the total passenger transport market share and 1 percent of the freight transport market share.

“The railway sector could hardly achieve the target of 13 percent passenger transport market share and 14 percent freight transport market share by 2020 under current infrastructure,” said Vietnam Railway Corporation’s former deputy general director Vuong Dinh Khanh.

Second, most projects to upgrade and/or overhaul existing railways have lagged behind set progress targets.

According to the revisionary statement the new strategy upholds most of the points made in Strategy 1686, only revising targets to meet practical conditions.

For instance, by 2020 the railway sector will satisfy 1-2 percent of passenger transport demand, 1-3 percent of freight transport demand, and for urban areas in Hanoi and Ho Chi Minh City, 10-15 percent of passenger transport demand.

With respect to the north-south railway network plan from now to 2020, as well as modernising the existing system the ministry has proposed building a 1,435mm gauge dual track line that can run at speeds of up to 200km per hour.

Completing the north-south railway network and scaling up train velocity to 350km per hour is slated for completion by 2050. By that time, old railway lines will be used mainly for freight.

Toward the successful completion of the 1,435 gauge railway, consultants have suggested prioritising a 36.750 trillion VND (1.75 billion USD) 50km test line between Ngoc Hoi and Phu Ly by 2020, and thereafter to 2030 building two new lines, the 234km section from Phu Ly to Vinh city and the 366km section from Ho Chi Minh City to Nha Trang city for a total investment of 406.413 trillion VND (19.3 billion USD).

Ministry statistics show that since Strategy 1686 went into force, a mere 8.070 trillion VND (384 million USD) was injected into improving railway infrastructure, less than 1 percent of the total planned.

With respect to urban railway development in Hanoi and Ho Chi Minh City, though Strategy 1686 set a roadmap for building eight lines in the former and seven in the latter, the railway sector has been largely slow in putting these plans into realising these plans.

Hanoi’s priority urban railway line N°1 project, funded by Japanese ODA as of 2008, has yet to see the developer even finish the first-phase of detailed planning.

Of Hanoi’s four urban railways which are currently under construction, only the Cat Linh-Ha Dong line has the chance of completing its planned finish in mid-2015.

Head of the Vietnam Railway Administration Nguyen Huu Thang said poor performance is due to impediments to investment proposals and land acquisition, as well as capital shortage.-

Communications sector, a driver of other industries

Deputy Prime Minister Vu Duc Dam has called on the information and communications sector to make strong breakthroughs to turn information technology into a driver of industries, services and the national administrative system.

Speaking at a conference to review the performance of the Ministry of Information and Communications in 2013 and initiate its tasks for 2014 in Hanoi on December 26, the government leader said the new phase of globalisation requires Vietnam to create new momentum to race in the current fierce competition.

The information and communications sector needs to press ahead with its pioneering role in catching up with the era’s new trends and exploiting technologies to help the country gather the new momentum, Dam said.

In 2013, the telecommunication sector is estimated to earn revenues of 9.9 billion USD. Its total phone subscribers hit 130 million, 93 percent of which are mobile phones subscribers.

There are 31 million Internet users and 5.17 broadband Internet subscribers.

Over 263,000 domains with Vietnamese names have been registered, marking an average growth rate of 172 percent a year and keeping the country in the number one position in Southeast Asia in national domain registration and activation.

The national end-to-end IPv6 network is being shaped step by step as set out.

Total revenues of the information technology industry are estimated at more than 20 billion USD.

All state offices have launched their web portals, providing over 100,000 online public services.

An Giang targets 1 billion USD in 2014 exports

The Mekong Delta province of An Giang will apply a number of measures to increase export activities in an effort to earn 1 billion USD from exports in 2014, a 4.1 percent rise over 2013.

According to the provincial Department of Industry and Trade, the locality will focus on boosting food processing for domestic and foreign needs, especially products with competitiveness such as rice, seafood, frozen vegetables and fruits.

It will also strengthen trade promotion to raise the export turnovers of its staples in promising markets, while maintaining traditional markets and enhancing the management of goods quality, the department said.

In 2014, An Giang will remove difficulties for businesses, especially those operating in manufacturing and processing rice, frozen shrimp and vegetable, and apparels which are the province’s four key currency earners.

It will ensure a favourable environment for both local and foreign businesses as well as increase the shares of its products in the world market, particularly in Asia, Europe, America and Africa .

In 2013, An Giang’s export turnover reached 960 million USD, up 12 percent against the previous year and exceeding its set target by 6.6 percent.

Kien Giang puts rice storage facilities into use

The Mekong delta province of Kien Giang has put into use six rice storage facilities, capable of keeping 87,000 tonnes of paddy rice.

The facilities are part of the Ministry of Agriculture and Rural Development’s plan to build storage facilities to store 4 million tones of paddy rice in the Mekong delta to serve rice producers and exporters.

They are located at Thanh Hung and Ngoc Chuc communes (Giong Rieng district), Tan Hiep A, Tan Hiep A and Tan Thanh communes (Tan Hiep district), and Soc Son town (Hon Dat), which house major rice fields.

Under the ministry’s project, Kien Giang was tasked to build 18 storage facilities with a combined capacity of 269,000 tonnes and it is working to complete the construction of the remaining 12 facilities by 2015.

In the Winter-Spring crop 2013-2014, the province planted 90,000 ha of high quality rice in the districts of Hon Dat, Tan Hiep, Chau Thanh, Giong Rieng, Go Quao and Rach Gia city and expects to harvest 7 tonnes per hectare in the areas

The province also increased its VietGAP-standard large scale rice fields to 1,524 ha in this crop.

The Mekong Delta has targeted an annual rice output of 24 million tonnes from 2020 to 2030 to remain as the country’s top rice producer.

According to the Mekong Delta Rice Research Institute, the region increased its rice output from 4.2 million tonnes in 1976 to 24.5 million tonnes in 2012.

HCM City seeks to increase trade links

Ho Chi Minh City’s trade promotion activities were introduced to commercial counselors at a conference in Ho Chi Minh City on December 25.

Addressing the event, Vice Chairwoman of the municipal People’s Committee Nguyen Thi Hong said changes in the world market will continue challenging exports of the country and localities in particular.

Given this context, the official proposed overseas Vietnamese representative offices step up their support and coordination with local authorities and enterprises.

Sharing Hong’s views, many delegates at the event called for the establishment of an information network that provides businesses with market changes, as well as international laws and policies while connecting domestic and foreign enterprises, helping them ease risks in the process of international integration.

Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers, suggested the overseas Vietnamese representative offices increase trade promotion activities and act as a dialogue bridge with authorities in host countries.

Deputy Minister of Industry and Trade Tran Tuan Anh urged the overseas Vietnamese representative offices to take the initiative in studying the market, building market development strategies and extracting cooperation opportunities in timely manner.

He said the target of export growth at 10 percent and trade deficit at 6 percent in 2014 is a huge challenge to the entire economy and the responsibility of ministries, branches and authorities at all levels.

The ministry has considered the enhancement of linkages between ministries and branches both at home and abroad with local authorities as one of the most important solutions to boost Vietnam’s export of goods and services.

Vietnam’s export value is estimated at 132.3 billion USD this year, representing a year-on-year rise of 15.4 percent. The EU, America, the US and Asia are the country’s major export markets.-

Greater Mekong Subregion tourism promises progress

Poor infrastructure and human resources, worsened by cumbersome immigration procedures, have limited tourism development in the Greater Mekong Subregion, which includes Vietnam, Laos and Cambodia.

Caravan tours between cultural and historic sites in the three countries have faced challenges.

During a recent "investigation trip" by officials, they discovered that roads from the bordergate in Vietnam to Cambodia's Kratie extend 230km but are not in good condition.

In addition, many enterprises want to organise tours but have been unable to do so because of immigration procedures.

"We need strong links between the three nations to deal with immigration. In addition, more investment for infrastructure, including roads, services and rest stops, is needed," said Ho Tan Cuong, vice director of central Quang Nam Province's Culture, Sports and Tourism Department, who took part in the investigation trip with other officials.

He suggested a tourism route that could begin or end at Angkor Wat in Cambodia to Laos' Vat Phou temple, to the Central Highland provinces in Vietnam to learn about the gong culture. The final stop could be the My Son sanctuary and the historic town of Hoi An in central Vietnam.

"Tourists could enjoy the cultural values of three countries via road and air," Cuong added. "Tourism on roads from Vietnam to Laos and Cambodia is now convenient. Good tourism services along with good cultural preservation attracts tourists."

In addition, Cambodia and Laos have become more attractive to many Vietnamese tourists.

For the first 10 months of the year, more than 700,000 Vietnamese visited Cambodia.

This represented 21 percent of international tourists in Cambodia, an increase of 11.5 percent compared to the same period last year, and the highest proportion of foreign tourists.

Poor co-operation between authorities of the three countries has also hindered tourism potential in the subregion.

"Tourism development co-operation has been negotiated since 1994. Enterprises have been asked to take part in programmes and more negotiations between governments and the private sector were encouraged," said Tran Phu Cuong, deputy head of the Tourism Authority's International Co-operation Department.

At the 32nd annual meeting on tourism development among the three countries, held in Kampot, Cambodia, early this month, the Asian Development Bank (ADB) announced a support loan of 100 million USD for tourism infrastructure projects in the subregion.

The funds will be used for seaport construction, waste water treatment for tourism areas, green tours on sea, and tourism development with the participation of local communities.

"We would like to connect all authorities and policymakers in these three countries in order to further investment opportunities," Phuong Huu Viet, chairman of the Vietnam-Laos-Cambodia Association for Economic Co-operation Development, said.-

Ministries join hands to remove troubles for investors

The troubles faced by investors relating to land usage, construction and environment when rolling out projects can be removed as three ministries are joining forces in drafting a circular to address such concerns.

The three ministries of planning-investment, construction and natural resources-environment have sit back together to map out standard procedures on investment, land use, construction and environment to reduce troubles for investors.

Investors have many troubles in executing investment schemes as they have to carry out numerous procedures on investment, land, construction and environment at the same time, especially for projects outside industrial parks, said Phan Duc Hieu of the Central Institute for Economic Management (CIEM) under the planning and investment ministry.

In particular, to deploy a project, the investor will have to perform about 18 different administrative procedures relating to land use, construction and environment.

Investors usually encounter time-consuming and troublesome procedures, noted Hieu, who is vice head of the Research Department on Business Environment and Competitiveness of CIEM. In many cases, both investors and government authorities do not know the process of necessary procedures, he stressed.

Surveys among enterprises on the provincial business environment released by the Vietnam Chamber of Commerce and Industry annually indicate that administrative procedures on land, construction and natural resources and environment are seen as the biggest headache for local enterprises.

Numerous researches and surveys in many localities demonstrate that investment, land, construction and environment procedures needed for the implementation of an investment scheme take a total of around 300 working days, Hieu stated. He ascribed the lamentable situation to the numerous flaws in relevant legal regulations and the inadequate capacity of agencies in handling administrative procedures for businesses.

To remedy the situation, the joint circular is aimed at giving clear guidelines on handling administrative procedures on investment, land, construction and environment to save on expenses and time for investors, Hieu explained.

Under the joint circular, the standard process of administrative procedures for a project is set up in a systematic way and subject to the actual situation ensuring the State management efficiency.

The circular includes clear contents on the procedures for seeking investment approval, and details for the coordination among State agencies in dealing with procedures. In addition, it clarifies the responsibility of related agencies in handling such administrative procedures.

Nearly 35,000 autos imported in 2013

December has seen an additional 3,000 complete build-up vehicles imported into the country, taking the total number of imported autos this year to 34,500 units worth US$709 million, said the General Statistics Office (GSO).

GSO said that the import of CBU units in 2013 shows an increase of 25.9% in volume and 15.2% in value.

The rising number of imported vehicles shows the restored confidence of consumers, but this year’s imported volume is still lower than that in 2011, when as many as 54,600 autos were imported worth over US$1 billion. The 2010 figures were not much lower, meaning the consumption a few years back was much stronger than now.

Last year saw the lowest consumer confidence in the past five years, and the slump in imported autos in 2012 was attributed to high registration fees at home and tentative schemes by the Transport Ministry to slap various additional fees on car owners.

The rebound in 2013 is due to Hanoi City slashing the registration fee to 12% from the previous 20%, while HCMC also has plans to cut the fee by two percentage points to 10% effective from January 1. In addition, the transport ministry has promised to drops its plan to impose additional fees on car owners.

Observers expect the auto market growth momentum will continue into 2014 owing to lower fees. In addition, autos imported from ASEAN countries will be subject to an import tariff of 40% from January compared to the current 50%, which will be a strong boost for imported autos.

The local property market has lately seen more bustling merger and acquisition (M&A) activity as many exhausted project owners now have no other choice but to transfer their projects or partner with other firms.

Hung Thinh Corp. has recently announced its cooperation with Dai Thanh Company to continue constructing the Hiep Tan apartment project in HCMC’s Tan Phu District. The new developers have renamed the scheme as the 8X Dam Sen, which will have around 600 condos measuring 45-85 square meters a unit with the selling price from VND600 million each targeting young customers.

Besides, Hung Thinh Corp. has acquired the Nguyen Quyen housing project in Binh Tan District to build the condo project also named 8X. Making cooperation to continue investment has been carried out successfully by the company over the past time.

Nguyen Dinh Trung, general director of Hung Thinh Corp., informed that his company would continue acquiring projects with good locations and join forces with developers facing financial constraints to develop the low-cost homes 8X in the near future.

Similarly, Novaland besides developing the Sunrise City in District 7 also has plans to expand investment through acquiring projects at prime locations in HCMC. The enterprise has just unveiled the Lexington An Phu project in District 2 after purchasing it from a local developer.

In particular, a source told the Daily that Novaland is going to purchase some other projects in District 4 to develop the high-class housing segment.

Stephen Wyatt, general director of Jones Lang LaSalle, noticed that current difficulties in the local market have forced prices of realty projects down to more reasonable levels. He expects the M&A trend will continue rising in 2014 when lots of projects are still short of capital for deployment and have to seek partners for transfer.

Minister of Construction Trinh Dinh Dung said on the Government website chinhphu.vn that the local property market was warming up but there still should be stronger measures to remove the market’s troubles next year. Developers will have to continue restructuring their housing schemes to offer products suitable with local demands, he added.

PV Gas nets VND12 trillion in profits

The country’s biggest liquefied petroleum gas (LPG) trader PV Gas this year has pocketed nearly VND12 trillion in after-tax profits this year, a rise of 53% over its annual target. Its pre-tax profit has also risen 53% to nearly VND15 trillion, or roughly US$740 million.

The surging profit is attributed to higher revenue this year, totaling VND65 trillion, or 18% above the target. PV Gas said in a press statement its revenue accounts for 10% of the parent firm PetroVietnam.

The company, which is a distributor of gas to other traders in the country and holds a market share of some 70%, has paid taxes totaling VND5.2 trillion this year, also 47% higher than expected.

Banks still thirsty for G-bonds

The State Treasury and Vietnam Development Bank (VDB) have fulfilled this year’s targets of mobilizing funds via Government bonds but local banks are still picking up such bonds these days.

As the G-bond issuers have already closed bond supply schemes this week, many banks are trying to purchase modest G-bond volumes on offer.

According to the Hanoi Stock Exchange, the Vietnam Bank for Social Policies offered VND1 trillion worth of bonds on December 23, including VND300 billion worth of two-year bonds, VND400 billion of three-year bonds and VND300 billion of five-year bonds.

Banks purchased VND250 billion worth of two-year bonds with the winning coupon of 8.19% per annum, or 0.05 percentage point lower than at the previous session on December 16.

The bank has mobilized nearly VND7.4 trillion worth of bonds through auctions since early this year.

Last week, the lender successfully issued VND400 billion worth of bonds while VDB sold out VND98 billion worth of five-year bonds and the State Treasury raised VND3 trillion worth of bonds.

Since early this year, the State Treasury has successfully mobilized over VND138 trillion compared to the whole-year plan of nearly VND137 trillion. VDB has raised VND40 trillion, meeting 100% of this year’s target.

A research group from the Bank for Investment and Development of Vietnam said that primary G-bond auctions have been bustling recently. Banks have a stronger appetite for five-year bonds instead of the three-year term like before, suggesting that investors’ confidence has strongly improved.

G-bond yields have declined to 7.48% and 8.5% for three-year and five-year terms respectively.

Strong liquidity at banks, low inflation and macroeconomic stability forecast for 2014 have spurred up demands for G-bonds, the group said.

Banks given strong liquidity have chosen G-bonds as an attractive investment channel although the bond yield has dropped back sharply.

Despite the year is drawing to a close when the cash demand normally runs high, liquidity at banks is expected to stay strong as over VND50 trillion worth of G-bonds, treasury bills and government-backed bonds will fall due in January, 2014. Meanwhile, the demand for credits remains weak.

Last week, the central bank net withdrew around VND4.5 trillion out of the banking system.

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