Vietnamese dragon fruit exported to 40 markets

Vietnamese dragon fruit has been exported to 40 countries and territories such as China, Thailand and Indonesia, according to the Ministry of Agriculture and Rural Development (MARD).

The fruit is also entering new markets including India, New Zealand, Australia and Chile, said the ministry.

The MARD is coordinating with the Ministry of Industry and Trade to complete procedures to ship dragon fruit to Australia in 2017.

Earlier this year, in January, the Australian Ministry of Agriculture and Water Resources released its final review of bio-security requirements for Vietnam’s fresh dragon fruits.

In mid-June, a letter was sent to the Vietnamese Ministry of Industry and Trade by the Australian Embassy in Vietnam, detailing the process of opening the market for Vietnamese fresh dragon fruit. 

The embassy also recommended supporting Vietnam in asking permission from the Food Standards Australia New Zealand to use irradiation treatment on dragon fruit shipped to Australia.

Dragon fruit is a Vietnamese agricultural staple, with export earnings of 895.7 million USD in 2016, making up of 50.3 percent of the country’s fresh fruit exports and 36.1 percent of overall vegetable exports. 

Price of pig down, breeders sell pork on roadside

Because price of pork is down and consumption is difficult, local breeders have slaughtered the animal and sold at VND100,000 four kilogram on the roadside in the Mekong delta province of Vinh Long.

These days, prices of pork in the Mekong delta have gone down driving breeders into despair.

The Department of Agriculture and Rural Development in Mang Thit District in Vinh Long Province yesterday said that local breeders are facing difficulties due to market saturation though prices fell drastically. 

With the price of VND18,000-VND20,000 a kilogram of pork, breeders suffered loss of over VND10,000 per kilogram.  Pork consumption had become saturated therefore breeders slaughtered their animal and sold it on roadside at the cost of VND100,000 for four kilogram.

Similarly, breeders sell pork at same price along streets in districts Cho Lach, Mo Cay Nam, Mo Cay Bac in Ben Tre Province pork.

Huynh Thi Thu in Son Dinh Commune in Cho Lach District said traders buy pork at VND17,000 - VND20,000 a kilogram, breeders will suffer big loss at a such price.

Despite efforts to reduce pigs, the province still has many herd of pigs in farms. Statistically, from October, 2016 to now, herd of pigs in Tien Giang Province has decreased over 200,000 pigs the province still has a herd of about 500,000 pigs.

Breeders in the Mekong delta have even left farms empty or they just raised some pigs because they run out of money.

As per the Department of Agriculture and Rural Development, for long-term strategy, breeders must associate with enterprises to raise the animal as per VietGap standards to cut cost. 

Vinataba-Philip Morris to reclaim over $2 million in tax refund

Vinataba-Philip Morris Ltd., based in Can Tho city, is in the legal process to reclaim a tax amount of over $2 million that has been withheld over the past few years in relation to the copyright licence fees that the company filed and submitted to the Can Tho Department of Customs.

In November 2010, Vinataba-Philip Morris Ltd. (VPM) signed an agreement with Philip Morris Global Brands Inc. (PMGB) to the effect of which VPM was permitted to exclusively produce and distribute tobacco products bearing the Marlboro brand in Vietnam. In order to legally use the brand, VPM is required to pay a copyright licence fee to PMGB on the basis of the total net selling price of finished tobacco products it produces and sells.

In 2011, VPM imported materials, including loose tobacco for the production of finished tobacco products bearing the Marlboro brand.

On August 17, 2012, after a post-customs audit, director general of the Can Tho Department of Customs issued Decision No.219/QD-HQCT (Decision 219) imposing import tax on the materials that VPM imported in 2011, citing the reason that the company failed to file the copyright licensc fee paid in 2011 into taxable value for the imported goods. The additional tax amount that the company had to pay was VND4.9 billion ($217,943).

On October 2, 2012, director general of the Can Tho Department of Customs issued Decision No.01/QD-HQCT (Decision 01) to stipulate a penalty of VND495 million ($21,794) against VPM for the violation of tax regulations due to its misfiling of the imported goods’ taxable value. Despite having submitted the two aforementioned amounts in full, VPM filed an administrative complaint and subsequently filed a lawsuit against Decision 219 and Decision 01.

While awaiting a decision, VPM still complied with Decision 219 to attain custom clearance for the imported goods and was required to add the copyright licence fee into the taxable value of imported materials during the period from 2012 to the second quarter of 2016.

The additional fee amounted to VND46.1 billion ($2 million). However, when filing and submitting these taxes, VPM sent a document to the Can Tho Department of Customs in order to reserve the right to claim refund on the tax amount the company had paid in relation to the copyright licence fee.

On August 29, 2016, the Supreme People’s Court of Ho Chi Minh City issued an appeal decision to annul Decision 219 and Decision 01. Accordingly, VPM was no longer required to add the copyright licence fee into the taxable value for imported goods.

Pursuant to this decision, on November 14, 2016, VPM sent a document to the Can Tho Department of Customs to request a refund on the excess payment, amounting to VND51.6 billion ($2.27 million).

However, the Can Tho Department of Customs only returned an amount of VND 5.4 billion ($237,654) in accordance with Decision 219 and Decision 01. The rest of the amount, VND46.1 billion ($2 million), the company submitted during the waiting period is yet to be resolved.

Tran Thanh Luong, deputy director general of the Can Tho Department of Customs, stated that because the appeal decision did not mention the additional tax amount VPM submitted from 2012 to the second quarter of 2016, the department issued a document soliciting opinions and would be awaiting further instruction from the General Department of Customs.

On September 8, 2016, the Post-Clearance Audit Department under the General Department of Customs issued a decision on the post-clearance audit of VPM.

On January 16, 2017, director general of the department signed Conclusion No. 24/KL-KTSTQ, part V, Article 3 of which stated that “the copyright licence fee must be added to the taxable value for imported goods, such as loose tobacco (processed and scented), filter, aluminum foil… (these materials only need to go through the rolling process to make the finished cigarettes)."

Pursuant to this conclusion, on April 25, 2017, the General Department of Customs issued document No. 2772/TCHQ-KTSTQ-NV in response to the document by the Can Tho Department of Customs regarding the refund of tax payment and overdue fines according to the administrative judgment.

The General Department of Customs requested that the Can Tho Department of Customs consider the actual record of tax payments by VPM in order to decide on the additional tax payment on the basis of the conclusions by the Post-Clearance Audit Department.

Nguyen Van Vu, deputy director general of the Can Tho Department of Customs, told VIR that the department has informed VPM of the response by the general department.

According to the instructions from the general department, the copyright licence fees from the company must be added to taxable value for imported goods, therefore, the Can Tho Department of Customs would not return the excess of $2 million that the company submitted. If VPM does not agree, they can file a complaint or a lawsuit to resolve the case.

Do Doan, CEO of VPM, said: “The basis cited by the Post-Clearance Audit Department to add the copyright licence fees to the import taxable value is not in accordance with Article 14 of Circular No.205/2010/TT-BTC issued on December 15, 2010 by the Ministry of Finance (MoF). It also goes against Article 1 of Circular No.29/2014/TT-BTC issued on February 26, 2014 and Article 14 of Circular No.39/2015/TT-BTC issued on March 25, 2015 by MoF.” 

Doan remarked that according to these articles, the copyright licence fee only needs to be added to taxable import value when the goods satisfy the following three conditions: copyright licence fee is paid for the use of intellectual property rights related to the goods; the purchaser pays the copyright licence fee as a condition of the transaction; and the copyright licence fee is yet to be included in the actual price paid or to be paid for the imported goods.

Since the first two among these conditions were not satisfied, the copyright licence fee that VPM paid should not be added to taxable value for materials.

“Remarkably, the basis in the conclusion issued by director general of the Post-Clearance Audit Department on which the copyright licence fee is to be added to taxable value is also the very basis that the Can Tho Department of Customs issued Decision 219 that the court annulled. Does the general department not know?” said Do Doan.

VPM is an enterprise with large contribution to Can Tho city. In 2016, the company contributed VND1.176 trillion ($51.7 million), accounting for 10 per cent of the total budget revenue of the Mekong Delta city.

SCG showcases innovative building materials at Vietbuild 2017

Thailand’s SCG Building Materials, one of five core businesses of SCG, a leading ASEAN conglomerate, showcased its latest building materials, high-performance integrated systems, and flexible and smart products to bring better living at the Vietbuild International Exhibition 2017 at Ho Chi Minh City’s Saigon Exhibition and Convention Center (SECC) between June 24 and 27.

With the theme “SCG Firmly Trusts in Quality for Ensuring the Future”, SCG’s exhibit this year underlined the high performance of its integrated systems with comprehensive functions and design for various lifestyles, flexibility, and smart benefits, with materials that meet specific needs with functional features and tailored design, ensuring better living and realizing a commitment to R&D to innovate high quality products.

“With over 100 years of experience in construction and building materials and over 25 years of operations in Vietnam, SCG recognizes Vietnamese families’ needs for better living,” said Mr. Jaturong Kurowat, Sales and Marketing Director at SCG Cement Building and Materials in Vietnam. “We commit to innovating product and service quality in building materials for new Vietnamese lifestyles to provide comfortable living with integrated functional benefits and outstanding design.”

To deliver better living, SCG introduced three core benefits enabled by its innovative solutions: high performing integrated systems, sustainable roofs, and ventilation systems innovated by SCG to cope with Vietnam’s tropical climate. This consists of SCG’s roofing products and accessories that form a system that offers temperature comfort, durability, and long lasting beauty over time.

COTTO, a brand under SCG, also showcased its collection of four bathroom styles under the concept “Bring Bathroom Happiness to Your Home with COTTO”, including Minimalistic Space of Relaxation, Luxurious Spa at Home, Small Space, Big Happiness, and Family Paradise.

Visitors were able to attend various activities held by SCG to explore the benefits of its solutions for better living. The Interactive House Style Test helped visitors identify the ideal housing style that matches their lifestyles.

Meanwhile, the talk show series with famous architects Ngo Ky Chu and Ho Le Phuong discussed the topics “Better Living in Different House Styles” and “Passion for Better Living”, providing home owners with knowledge and inspiration to enhance their living experience.

SCG also introduced the House Style Book of 2017, featuring six house models that suit the different lifestyles of Vietnamese consumers, and recommended SCG products in each design.

Jetstar Pacific receives first A320ceo airplane from Airbus

Vietnam’s low-cost carrier Jetstar Pacific received the first A320ceo airplane of ten aircrafts of this kind that the firm has ordered from the European aviation giant Airbus in 2017, at a hand-over ceremony held in Toulouse, France on June 27.

The purchase deal was announced last June during the 2016 Farnborough International Air Show in the UK.

Chief Executive Officer of Jetstar Pacific Nguyen Quoc Phuong said that the purchase of A320ceo airplanes is part of Jetstar Pacific’s development strategy of gradually replacing old aircrafts with new-generation ones in an effort to continually enhance customer service.

The new fleet of A320ceo planes are scheduled to be put into operation on major domestic air routes and international ones, including the newly launched direct routes connecting Da Nang/Ha Noi and Osaka (Japan), he added.

After the hand-over ceremony at Airbus, the first A320ceo jet will depart for a long-distance flight to Tan Son Nhat Airport in Ho Chi Minh City, in preparation for its first passenger flight in Vietnam. From now until the end of 2017, Airbus will continue transferring the remaining nine aircrafts to Jetstar Pacific to serve the firm’s update of its fleet and improvement of its service quality.

Didier Evrard, Head of Programmes at Airbus, spoke highly of the significance of Jetstar Pacific-Airbus cooperative relations, whilst expressing his belief in Jetstar Pacific’s development outlook with the addition of A320ceo airplanes to its fleet.

On the occasion, Jetstar Pacific signed a deal to purchase 24 V2500 aircraft engines from IAE International Aero Engines to be installed on its ten new A320ceo airplanes and four available backup engines.

Jetstar Pacific is currently operating 36 domestic and international air routes, connected with Jetstar Group’s low-cost flight network of 80 destinations in 17 countries via 4,000 flights per week operated by Jetstar Airways (Australia and New Zealand), Jetstar Japan (Japan), Jetstar Asia (Singapore) and Jetstar Pacific.

Vinamilk invests in three Hanoi dairy farms

Vietnam’s largest dairy producer Vinamilk has decided to invest in three high-tech dairy farms with 8,000 heads of cattle, worth VND1.4 trillion ($61.6 million) in Ba Vi district, Hanoi.

Within the framework of the  “Hanoi 2017 -  Investment and Development Cooperation” held on June 25, a representative from Hanoi’s leadership and Ms. Mai Kieu Lien, CEO of Vinamilk, signed a memorandum of understanding for investment in the hi-tech dairy farms.

The project aims to promote hi-tech dairy farms in the capital and create a source of fresh milk materials to ensure production and food safety.

Vinamilk will ensure capital and conditions for the construction of the three farms and building satellite milk stations in the area to meet daily demand for raw milk materials.  

As part of the program, Hanoi authorities introduced a list of 136 projects to investors with total investment of $48.4 billion.

The investors signed many memorandum of understanding totaling VND134.8 trillion ($5.93 billion).

Hanoi also handed over investment decisions to 48 projects with total registered capital of VND74.4 trillion ($3.27 billion).

Last month, Vinamilk signed a memorandum of cooperation with a Chinese partner to export dairy products to the country, witnessed by senior Chinese leaders and visiting State President Tran Dai Quang, who was in China from May 11-15 to pay a State visit to China and attend a high-level forum on the Belt and Road Initiative.

China is a huge market, with a total dairy market value of about $30 billion a year. Vinamilk hopes the memorandum will be an opportunity to export dairy products in the near future, when a trade agreement between the two countries is signed.

Vinamilk is the largest dairy company in Vietnam and among the Top 50 dairy companies in the world in terms of revenue. Its products are not only consumed in the domestic market but also exported to 43 countries around the world, including the US, Japan, Thailand, and the Philippines, as well as the Middle East. Its export turnover stood at $258 million last year.

Da Nang welcomes 3.2 million tourists in first six months

The central city of Da Nang welcomed more than 3.2 million tourists in the first six months of the year, an increase of 33.2% over the same period last year. Of the figure, 1.22 million were foreigners, up almost 72.2% over 2016.

According to a report on the city’s socio-economic development in the first half of 2017 recently released by the municipal People’s Committee, its gross domestic product (GDP) recorded a year-on-year increase of 8.1%. Industry, agriculture, service, FDI attraction, budget collections have all seen considerable growth.

Public administration reform continues to be accelerated. Da Nang continued to lead the country for the fourth consecutive year in the Provincial Competitiveness Index (PCI) and the PAR Index, it also topped the Networked Readiness Index for the eighth consecutive year.

The city is also stepping up efforts to prepare infrastructure for the APEC Economic Leaders’ Week, which is less than six months away. The hosting of the APEC Economic Leaders’ Week is expected to help popularise Da Nang as a city of marine and MICE tourism. It will also help improve local officials’ and residents’ integration capacity and expand the city’s external relations.

The city has exerted efforts to implement commitments to the development of the maritime economy, while resolutely safeguarding the country’s sovereignty over sea and islands.

The city has built its own plan to realise the country’s sea and island strategy, with solutions and steps suitable with the country’s current conditions while making the best use of foreign investment and technology to utilise sea resources, serving the country’s economic development in a rapid and sustainable manner.

National development requires contributions from overseas enterprises

Deputy Prime Minister Truong Hoa Binh has expressed the hope for more overseas enterprises to invest in Vietnam to contribute to national economic development.

He made the remarks at a meeting with the Vietnamese Business Association in Australia (VBAA) in Ho Chi Minh City on June 27.

The Deputy PM emphasised the important role of the overseas Vietnamese community, particularly overseas Vietnamese enterprises to national development.

He noted that the Politburo issued Resolution 36 on Overseas Vietnamese in 2004 while the Government issued the Action Plan on Overseas Vietnamese in 2016 which affirmed overseas Vietnamese as an integral part of the nation and a significant factor in the country’s foreign relations.

He also noted that Vietnam and Australia are enjoying a fruitful relationship, recording two-way trade revenue of around US$5 billion.

However, there still remains huge potential for both sides to unlock as Vietnam has an increasing demand for exporting agricultural products to Australia and the advanced education system in the country. Meanwhile, Australia has advantages in high technology and renewable energy sectors which can supplement the Vietnamese economy.

Binh also informed VBAA enterprises about Government efforts in administrative reform and improvements made to the business environment in a bid to attract more overseas enterprises to invest in Vietnam.

VBAA President Tran Ba Phuc expressed his delight with the results of the recently concluded fifth meeting of the 12th Party Central Committee which issued a Resolution on developing the private sector, making it an important driving force for economic development. Thus, the Resolution contributes to boosting overseas Vietnamese confidence to return to Vietnam to do business, Phuc noted.

Phuc said that the VBAA has received many Vietnamese business delegations to Australia to learn about the Australian market and acted as a bridge connecting the enterprises of both countries.

The VBAA has also worked with domestic Government agencies and enterprises to carry out a number of projects in the areas of solar energy, high technology and tourism, Phuc added.

LG’s plan to increase investment in Vietnamese project on hold

Korean firm LG Display’s proposal to increase registered capital at their project in Hai Phong by US$90 million has been put on hold as their financial plan is ‘not convincing enough’, according to the finance ministry.

LG Display Vietnam Hai Phong, the Vietnamese unit of South Korea’s LG Display Co. Ltd, has sought permission to increase registered capital in its display-making plant in the northern port city to US$1.59 billion from the current US$1.5 billion.

The facility, which broke ground in Hai Phong’s Trang Due Industrial Park in 2016, is expected to produce OLED screens for smartphones, smartwatches and tablets.

The management board of the Hai Phong Economic Zone has consulted the Ministry of Finance on the request of the South Korean firm, with the latter ordering that the proposal not be approved “until the investor presents a sound financial plan for the capital increase.”

According to the finance ministry, LG Display’s equity in the current $1.5 billion in capital registered to the Hai Phong project is only $100 million.

The South Korean firm is also unwilling to increase its own equity despite the increase in capital investment.

This means that 100% of the additional US$90 million in capital proposed for the project would come from outside loans, which Vietnam’s finance ministry believes “could lead to an unhealthy financial status, unstable production and uncertainty in business activities.”

According to the finance ministry, Hai Phong authorities should request that the South Korean company adjust their financial plan for the capital increase in a way fit to hike its own equity in the plant.

Also, in its initial proposal, the Korean investor failed to include financial statements of LG Display Vietnam Hai Phong for 2016, nor the parent firm LG Display.

Consequently, the finance ministry has also requested that these two documents be submitted so that it can properly evaluate the financial capacity of the firm and decide whether the plan to increase capital investment should be approved.

Vietnam to complete procedures for fresh dragon fruit export to Australia

The Ministry of Industry and Trade and Ministry of Agriculture and Rural Development are trying to complete procedures for shipping fresh dragon fruit to Australia this year.

After Australia opened door for Vietnamese fresh lychees and mangoes, the two ministries have actively worked with the Australian Department of Agriculture and Water Resources to export other fruits like dragon fruit, rambutant, star apple and longan to the market.

On June 15, the Australian Embassy in Vietnam sent a letter to the Minister of Industry and Trade updating information about Australia’s opening door for Vietnam fresh lychees and offering support for the application for  the Food Standards Australia New Zealand’s permission for irradiation treatment of dragon fruits before shipping to Australia.

Meanwhile, the Vietnamese Trade Office in Australia has developed a trade promotion plan and collected information on markets, tastes, quality standards and regulations and distribution networks to help domestic businesses enter the demanding market successfully.

Dragon fruit is one of Vietnam’s key export fruits with export sales of US$895.7 million last year, accounting for 50.3% of total fruit exports and 36.1% of total fruit and vegetable exports.

MoIT strives to boost agri-aquatic products export to Australia

The Ministry of Industry and Trade (MoIT) has joined hands with other ministries and sectors to promote the export of agri-aquatic products to Australia. 

According to the Ministry’s Import-Export Department, Australia is among the largest buyers of farm and aquatic products of Việt Nam, resulting in an annual average import value of US$450 million in 2011-16. 

MoIT has actively worked with the Ministry of Agriculture and Rural Development (MARD) to address technical barriers to bring shrimps and fresh fruits to Australia. 

Following a long period of negotiations, Việt Nam’s lychees and mangoes were first shipped to Australia in 2015 and 2016, respectively. 

MoIT and the MARD have been working hard for the export of other fresh fruits such as dragon fruits, longan, star apple and rambutan to this market. 

The two ministries have worked tirelessly to win Australia’s acceptance of Việt Nam’s applications for importing raw shrimps that are caught naturally in Australia for processing, and then re-exported to Australia. 

The two ministries are working together to urge the Australian Department of Agriculture and Water Resources to accelerate the recognition of Việt Nam’s shrimp safety from white sport disease and the quality safety control system to allow Việt Nam to ship its fresh whole shrimps to the market at the earliest. 

They have also provided support for the Việt Nam-Australia Group and Minh Phú Company to soon sell high-quality shrimp products to the Australian market. 

According to Việt Nam’s Trade Office in Australia, Australia is the seventh largest import market of Vietnamese shrimps, which consumes 3.6 per cent of the country’s total shrimp export volume. In the past five years, Việt Nam has been the largest supplier of processed shrimps for Australia. Despite the market’s strict requirements, it is considered a promising market for Vietnamese firms due to high and increasing demand.

In 2016, Việt Nam earned $114.6 million from shipping shrimp to Australia, 78 per cent of which was processed shrimps. 

Meanwhile, Australia tends to narrow down its import markets and focus on only major ones, which is also an advantage for Việt Nam.

Portfolio investment turns key channel for foreign funds in city

Portfolio investment in HCMC in the first half of this year has far outpaced foreign direct investment, and the trend is expected to continue in the years to come as opportunities for foreign indirect investment (FDI) abound.

Foreign companies in the January-June period actively purchased stakes or shares of local firms on the stock market, with 915 deals worth US$1.4 billion, according to data from the city’s Department of Planning and Investment.

Meanwhile, the FDI inflow trails far behind. Data shows city authorities approved 340 FDI projects with total pledged capital of US$375 million, and if additional capital of US$345 million injected into operational FDI project is included, the total amount of FDI in the period would amount to US$720 million, slightly over half of portfolio investment.

These figures suggest an established trend for foreign investment into the city, as foreign investors turn more interested in mergers-and-acquisitions (M&A) deals compared to previous years, when FDI was still the dominant channel for foreign funds.

Analysts said foreign investors now see M&A as the more efficient and rapid way to penetrate Vietnam and expand business here. They said this trend will continue this year and next.

The 2014 Investment Law taking effect in the middle of 2015 also invigorates this trend as it provides a clear legal corridor for M&A investors, giving them peace of mind when investing in the country. Synchronously, efforts by HCMC authorities to create favorable M&A mechanisms also help lure more foreign investors.

The city’s Department of Planning and Investment has launched online services for those foreign investors wanting to buy into domestic companies. In the year’s first half, the department handled as many as 612 online applications by M&A investors.

The Department of Planning and Investment is currently preparing for the second phase of online registrations for a number of investment procedures to make life easier for those wanting to engage in M&A deals here.

Another positive factor is Decree 60/2015/ND-CP allowing for expanding foreign ownership at local listed companies from 49% to 100%. The decree, which opens the door wider for foreign investors in most listed firms apart from a limited number in conditional business areas has created more business opportunities for portfolio investors.

* In related news, data from the city’s Department of Planning and Investment also show domestic investment in the year’s first half also increased strongly.

The department said over 18,000 enterprises were established in the period with total registered capital of VND227.5 trillion, or US$10 billion, rising 10.5% and 57.5% respectively.

In addition, over 26,100 domestic enterprises registered to expand business and raise capital by an additional VND265.16 trillion, a 3.5-fold increase over the same period of last year.

Newly-established enterprises were overwhelmingly licensed into the real estate sector with 40% of the total number of new startups with combined capital of VND90.9 trillion.

PM points out shortcomings in agricultural production

Prime Minister Nguyen Xuan Phuc, speaking at a meeting with Haiphong leaders June 26 , said the small farmland limit is one of the major shortcomings in agricultural production.

There are 17.5 million farms nationwide, he said, so this means each farmer has a small plot of land for agricultural production. Data shows more than 80% of farmers in the country have less than one hectare of farmland each.

The country cannot boost farming productivity with those small farms, he said.

Inappropriate policies have led to low investment in agriculture. Outdated technologies and unstable markets have caused many difficulties for farmers.

“The Government will focus on solving these shortcomings. We have mapped out a good agriculture development plan, including calling for more investment, applying new technology and making better policies,” he said.

According to Deputy Prime Minister Vuong Dinh Hue, as of September 2016, Vietnam has only 4,424 businesses active in agriculture, accounting for less than 1% of the country’s total. After three years of implementing Decree No. 210 on support for agricultural production, there were only 64 agricultural projects getting insignificant aid.

In 2015, only 40 projects in 21 provinces received total aid of VND200 billion (US$8.8 million) and in 2016, disbursements to implement supporting policies in line with Decree 210 totaled only VND185 billion. Hue said these investments are insignificant while the procedures for receiving aid are complicated.

The PM said the economic outlook is brighter with inflation under control, macro-economic stability, economic recovery, strong export growth and stock market rallies.

In the first five months of 2017 the nation’s foreign exchange reserves rose to more than US$40 billion, new foreign investment approvals reached more than US$12 billion and newly-established enterprises totaled 50,000.

Pig farmer rescue campaign hits chicken breeders

An ongoing campaign to rescue pig farmers from the price plunge has delivered a blow to chicken farms in Dong Nai Province, the country’s key poultry farming area.

Chicken prices have plummeted by VND10,000 to VND22,000-24,000 a kilo, causing big losses for poultry farmers. The pig farmer support endeavor has led to consumers increasing pork consumption.

A representative of Hoang Thanh Tra Co Ltd said the price of chicken at the company’s farms ranges from VND22,000 to VND24,000 per kilo this month.

The pork supply glut and the steep decline in pork prices have fueled consumption, said the representative.

Nguyen Thanh Phi Long, technical director at Long Binh Livestock Co Ltd in HCMC, said the price of white-feathered chickens has declined by VND3,000 against the previous week to VND22,000-23,000 per kilo.

Buff chickens in Dong Nai have hovered in the range of VND24,000 and VND26,000 a kilo, far below the production cost of VND33,000-35,000, according to Nguyen Kim Doan, vice chairman of the provincial Husbandry Association.

He added the province is home to 17 million chickens, with only 10% of them being white-feathered chickens.

Meanwhile, Pham Thi Ngoc Ha, director of HCMC-based San Ha Co Ltd which specializes in poultry products, said her company was still buying chickens that meet quality, and food safety and hygiene standards from farms in neighboring Long An Province at VND32,000 a kilo.

Some farmers are reeling from low poultry prices due to the low quality of their products, she noted.

Strong EU demand for tra fish with low ice ratio

The European Union market’s demand for tra fish (pangasius) products with the ice-to-fish ratio of 10% or less has improved even though their prices are higher than tra fillets with 20% ice.

Data of the Vietnam Association of Seafood Exporters and Producers (VASEP) shows the country shipped around US$72 million of tra fish to the EU in January-May, a 28% decrease compared to the same period last year.

The fall mainly resulted from poor demand for tra fish fillets with a ratio of ice to fish of 20%. Tra fish products with 0-10% ice were selling well in the EU market and their prices ranged from US$3.07 to US$3.95 per kilo in the United Kingdom, Belgium, Germany, Greece and the Netherlands.

Meanwhile, prices of products with the ice-to-fish ratio of 20% were US$1.2 to US$1.75 per kilo in Hungary, France and Italy.

The Government’s Decree 36/2014/ND-CP issued in 2014 sets the maximum ice and moisture ratios of 10% and 83% respectively in the net weight of frozen tra fish fillets for export.

Local enterprises said the decree would make life difficult for them and proposed raising the ice-to-fish ratio to 20%.

More than two years later, the Ministry of Agriculture and Rural Development issued Circular 07/2017/TT-BNNPTNT on national standards for frozen tra fish fillets and seafood, with effect from May 5 this year. The circular caps the ratios of ice and moisture at 20% and 86% respectively.

But products with an ice-to-fish ratio of less than 10% were in high demand in the five-month period. Therefore, VASEP urged exporters to reduce ice content in tra fish products and diversify their product portfolios to improve outbound sales.

Bac Lieu fishermen enjoy good catches

Fishermen in the Mekong Delta province of Bac Lieu have gained big profits in recent weeks thanks to favourable weather.

Near-shore fishing ships were able to earn about 1.5 million VND (66 USD) in profit a day and long offshore trips up to 45 days could help the fishermen earn 300 million VND (13,190 USD). 

Nguyen Van Nam, a fisherman in Dong Hai district said the cooperation of authorities, businesses and ship owners to form logistics teams has supported fishermen in their long fishing trips. 

Since the beginning of this year, fishermen of Bac Lieu province have caught more than 45,000 tonnes of seafood, up 0.3 percent year-on-year. The catches are expected to increase as the latter half of the year is the best time for sea fishing. 

Meanwhile, some fishermen are facing difficulties to borrow capital to build and fix their fishing ships and equipment, which caused by complicated procedures and poor cooperation of relevant agencies.

The province has asked the agricultural and banking sectors to smooth out problems to assist fishermen.

Thanh Hoa approves nearly 70 vessels under Gov’t decree

Sixty seven vessels have been approved to be built for fishermen in the central province of Thanh Hoa over the past three years of implementing the Government’s Decree 67 on measures to develop fisheries.

The fleet includes 18 logistic ships and 49 offshore fishing vessels. 46 of them have been put into operation, 23 of which are steel ships and the remaining wood boats. 

As of June, commercial banks in the provinces, including branches of the Vietnam Bank for Agiculture and Rural Development (Agribank), Bank for Development of Vietnam (BIDV), and the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), have signed credit contracts worth a total 569 billion VND (25 million USD). Over 90 percent of the amount has been disbursed.

Nguyen Duc Cuong from the Sub-Division of Fishing and Marine Resources Protection under the provincial Department of Agriculture and Rural Development said the ships built under the Decree have helped enhance offshore fishing efficiency.

In operation, 15 out of the 23 steel vessels were found encountering technical troubles, Cuong said, adding that they have been repaired in shipbuilding facilities.

The Department has advised steel ships owners to report any problems with their ships to local authorities for timely repair, and not to leave them ashore, Cuong said.

Thanh Hoa is allowed to build 94 ships under Decree 67.

The province will continue providing financial assistance for repairing, maintaining ships built under the Decree and for operation of logistic ships with the capacity exceeding 400 CV by 2020.

Ministry discusses pharmaceutical industry development strategy

The Health Ministry discussed a strategy to develop the pharmaceutical industry at a seminar it jointly held with the Party Central Committee's Commission for Economic Affairs and the Australian Embassy in Vietnam in Hanoi on June 27. 

Deputy Head of the Party Central Committee's Commission for Economic Affairs Ngo Dong Hai stressed that Vietnam is said to be a potential market for the pharmaceutical industry.

The Party and State’s policies on health care that targets full health insurance coverage for the whole people will drive up demand for medicines, he said. 

Vietnam boasts great potential for developing the sector as it has a rich pool of medicinal plants and traditional medicine, he said, adding that if cooperation in research is promoted along with proper investment for the sector, Vietnam is able to produce medicines that meet international standards and export-related standards. 

Participants shared the view that the pharmaceutical sector is facing difficulties and challenges due to inadequate State budget and great dependence on imported pharmaceuticals. 

According to Health Minister Nguyen Thi Kim Tien, Vietnam aims to raise the ratio of locally-made medicines to 80 percent by 2020, with 40 percent of which being proven bioequivalent. However, the target is hard to achieve in the context of extensive globalisation and international integration, and fierce competition.

The rate of use of domestically produced medicines in central-level hospitals remains low, she said, attributing the situation to insufficient attention to distribution work in the sector.

Additionally, medicinal plants grown on an area of only 15,000 hectares meet nearly 30 percent of the domestic production needs. 

Participants said it is necessary to address difficulties facing the sector, focusing on improving the business climate, promoting technology application in production, bettering the quality of human resources, and increasing investment for the sector. 

They also recommended a number of policies to attract more investment for the industry, towards developing the country into a pharmaceutical production centre of the region by 2035.

Seminar seeks to develop productive, quality agriculture

A seminar on developing quality and productive agriculture took place in Hanoi on June 27 as part of the Vietnam Economic Forum 2017. 

Speaking at the event, permanent deputy head of the Party Central Committee’s Economic Commission Cao Duc Phat said the agriculture sector grew strongly in the 2011-2015 period with improved farm produce quality and increasing number of agricultural firms. 

However, high-tech agriculture tends to stall due to barriers regarding land, market and capital access. 

Nguyen Thi Thanh Thuy, head of the Ministry of Agriculture and Rural Development (MoNRE)’s Department of Science-Technology and Environment, said the State has issued a number of policies to facilitate high-tech agriculture, but administrative procedures and the lack of insurance for the field pose difficulty to the effort. 

She suggested encouraging firms to establish research centres and forming close linkage between businesses and technological organisations to promote high-tech application. 

Thuy stressed the need to increase negotiations and the signing of trade deals to facilitate businesses’ access to markets. 

Participants called for reviewing and amending regulations on hi-tech application in agriculture and the Law on Land, as well as providing incentives for hi-tech farming enterprises. 

The southern provinces of Hau Giang, Phu Yen and Bac Lieu are currently home to three hi-tech agricultural zones approved by the Prime Minister. 

The MoNRE has granted licenses to 26 hi-tech firms while Thai Nguyen, Thanh Hoa and Lam Dong provinces have devised plans to establish hi-tech agricultural zones. 

As of the late March, the State has provided 156.3 billion VND (6.79 million USD) for 15 hi-tech projects in agriculture. 

According to the MoNRE, firmed invested more than 21.2 trillion VND (921.7 million USD) into 25 hi-tech agricultural projects from June 2016 – February 2017.

The event was co-hosted by the MoNRE and the Party Central Committee’s Economic Commission.