Japanese firm invests in Vietnam's Vexere

Tokyo-based CyberAgent Ventures Inc., a venture capital arm of CyberAgent Inc., has announced its investment in Vexere Corporation, a start-up that operates an online bus ticket booking portal.

This is its second round of investment in the Vietnamese firm, in which Singapore-based Pix Vine Capital has also invested. The funds are said to be used for accelerating the growth of Vexere Corporation's users and partners. CyberAgent Ventures will contribute to raising Vexere's value by making the most of its resources such as existing operations, business experiences and know-how.

"The first round of investment has been used to build a bus management system used in the operation of 30 local bus operators. The owners can check the number of tickets sold at their offices, and the number of tickets sold for every route in Vietnam on their smartphones," Vexere Corporation's President and CEO Tran Nguyen Le Van said.

Work starts on infrastructure at Thu Thiem new urban area

The Ho Chi Minh City Infrastructure Investment JSC on June 27 commenced the construction of technical infrastructure at the northern residential quarter and the north-south road in Thu Thiem new urban area.

The residential area comprises 44 parcels of land with land-use functions as following: mixed use residential development, mixed use commercial development, and community facilities.

The total developing area is approximately 423,657 square metres.

The construction of the north-south road, which is 1,097 meters long and 44.7 meters wide, is conducted under the built-operate (BT) form.

Other facilities, including water supply, electricity and drainage systems, will be built.

The technical infrastructure project worth about 3.3 trillion VND ( 151.3 million USD) will be implemented within 18 months.

Vietnam expects for TPP at Asia-Pacific foreign trade forum

The Trans-Pacific Partnership (TPP) deal is expected to bring great opportunities to Vietnam , connecting the country with Mexico and other member countries, Vietnamese Ambassador Le Linh Lan told the Asia-Pacific Foreign Trade Forum recently held in the central Mexican state of Queretaro.

In her speech entitled “Market regionalisation, the global economic growth factor”, Lan mentioned the two economic blocs impacting Vietnam, including the Association of Southeast Asian Nations (ASEAN) and the TPP..

After its entry into ASEAN in1995, Vietnam recorded a gross domestic product growth of 6.77 percent in 1995-2014, higher than a 5.62 percent in 1985-1994, she said, adding during its first year of membership alone, the Vietnamese economy expanded by a record 9.95 percent.

When it comes to TPP, the ambassador said the deal will create the world’s largest free trade area covering a population of over 804 million, or 11.2 percent of the global total, making up 40 percent of the world’s GDP and 30 percent of its exports-imports.

Vietnam embarked on TPP negotiations in November 2008 while Mexico joined the talks in October 2012.

As Vietnam and Mexico are celebrating the 40th anniversary of diplomatic ties, Lan said both countries are working to promote economic and trade ties, with the ongoing negotiations of three memoranda of understanding on cooperation in trade and industry, plant and animal quarantine, and aquaculture that are expected to be signed this year.

Representatives from the Mexican Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food Raul Urteaga Trani said Vietnam and Mexico are interested in coffee and rice, two commodities seen as sensitive in TPP talks.

Last year, two-way trade between Vietnam and Mexico reached 2.26 billion USD, up 39.7 percent annually, 1.91 billion USD of which was trade surplus run by Vietnam.

The forum, attracting representatives from India, the Philippines, Singapore, New Zealand and Perui, was presided over by the Mexican Business Council for Foreign Trade, Investment and Technology.

Agricultural and aquatic exports in decline

The export value of agricultural, aquatic and forestry products is currently estimated at 14.42 billion USD for the first half of the year, which marks a decrease of 2.8 percent compared to the same period last year, according to the Ministry of Agriculture and Rural Development.

The value of agricultural exports declined by 5.7 percent to 6.93 billion USD, and aquatic products fell in value by 16 percent to 2.97 billion USD, particularly on the US market.

During the period under review, rice exports exceeded 3 million tonnes, worth 1.3 billion USD, which represents a 10.5 percent decline in value compared to the same period last year.

The biggest tumble at 22.6 percent was observed on the Chinese market, the biggest importer of Vietnamese rice. In contrast, a remarkable increase was noted on the Malaysian market, which made it the third largest importer of Vietnamese rice.

Coffee recorded a significant decline of 35 percent, exporting 687,000 tonnes and generating 1.42 billion USD.

Other products, such as tea and rubber, saw a similar trend during the first half of the year.

Meanwhile, pepper, cashew nuts, and cassava exports still recorded double-digit growth in terms of value.

Exports in forestry products surged by 8 percent compared to the same period last year, generating 3.29 billion USD.

Disbursement of FDI up 9.6 percent in first half

The disbursement of foreign direct investment (FDI) in the first half of the year reached 6.3 billion USD, up 9.6 percent from a year ago.

The Ministry of Planning and Investment's Foreign Investment Agency said that the country attracted 5.49 billion USD in FDI during the January-June period, or 80.2 percent of the figure in the first six months of last year and the lowest since 2012.

In the first half of the year, 750 new FDI projects were granted investment certificates, with total registered capital worth 3.84 billion USD, or 79 percent of the number during the same period last year. Some 280 projects increased their registered capital by a total of 1.65 billion USD, or 83 percent of last year's figure in the first half.

According to the agency, the number of newly granted projects increased 15 percent year on year but there were no large-scale projects, which marked a reduction in registered capital.

During the period, most of the FDI went into the processing and manufacturing industries, with 338 new projects and 190 increasing capital worth 4.16 billion USD, accounting for 76 percent of the total capital.

The property sector took the second position, with 11 new projects registered and 7 increasing capital with a total of 465.5 million USD. It was followed by the wholesale, retail and repair sectors, with 119 new projects and 26 increasing capital, with total capital worth 276.5 million USD.

The Republic of Korea overcame 48 countries and territories to become the top investing country in Vietnam, with total registered capital worth 1.52 billion USD, followed by British Virgin Islands, with 684,8 million USD.

Turkey and Hong Kong held the third and fourth positions, with a total investment of 660.2 million USD and 627.5 million USD, respectively.

Some of the large projects that were granted licences during the period include the 660-million USD Hyosung Dong Nai, invested by Turkey to produce yarn in Dong Nai Industrial Zone; Worldon Vietnam Company, with 300-million USD investment to produce high-end garment and textile products in HCM City; Lu Thai Vietnam worth 160.8 million USD in Tay Ninh Province; and the 120-million USD Tra Vinh 1 wind power project in Tra Vinh Province. The ministry expects the annual FDI to reach 23 billion USD. As only 23.8 percent of the target could be met in the first six months, the country will need to attract new projects with larger investments over the remainder of the year to achieve the target.

Automobile imports on the rise

More than 56,000 completely built units (CBUs) of automobiles were imported during the first half of this year, an increase of 30,000 units over the same period last year.

The officials of the Ministry of Planning and Investment (MPI) said at a meeting on June 24 that of the total number of CBUs, 18,000 were vehicles with nine seats or less, while up to 36,000 were trucks and buses.

Earlier, the General Department of Customs reported that Vietnam imported more than 45,700 CBUs during the first five months, up nearly 130 percent year-on-year. Their combined value was 1.2 billion USD, a year-on-year increase of 183 percent.

In five months, cars with nine seats or less reached some 15,800 (up 74 percent) in number and 186 million USD (up 69 percent) in value. Trucks reached roughly 17,160 (up 95 percent) and 455 million USD (up 123 percent) in number and value, respectively.

The MPI officials said the latest data indicated that enterprises stepped up the import of vehicles that serve production and transportation.

The sharp rise in the number of trucks was due to a tighter policy of the Ministry of Transport for controlling vehicle weights to ensure safer road traffic, they added.

A sizable number of Chinese trucks reportedly entered the Vietnam market over the last few months, threatening similar vehicles manufactured and assembled domestically, as well as the national automobile industry. The MPI Deputy Minister Dang Huy Dong stressed that the situation required attention as some domestic policies were virtually stimulating demands for products from other countries.

Vietnam promotes investment and tourism in South Africa

Representatives of Vietnamese and South African authorities and businesses came together in Cape Town, South Africa, to explore the potential for investment and tourism in the two countries.

The event was jointly organised by local authorities, the Embassy of Vietnam in South Africa, and the Hanoi Small- and Medium-sized Enterprises Association (HASMEA) on June 26.

Addressing the opening ceremony, Vietnamese Ambassador to South Africa Le Huy Hoang hailed the event’s contribution to the promotion of investment and tourism cooperation between Western Cape Province and Cape Town in South Africa and Vietnamese localities, including Hanoi.

The Vietnamese Ambassador introduced a number of incentives provided by Vietnam and Hanoi to attract foreign investment, as well as other favourable conditions, including infrastructure and a skilled labour force.

He also highlighted Vietnam’s potential in terms of tourism, agricultural and seafood products, handicraft products, garments and textiles, and construction material.

For his part, Executive Deputy Mayor of Cape Town Ian Neilson praised the achievements made by Vietnam and Hanoi, and affirmed that Cape Town is keen to cooperate with Hanoi on urban management, economic development, market expansion and tourism.

Julius Okiror, representative of the Western Cape Agency of Trade and Tourism Promotion, gave an overview of the province’s key export products, including petroleum, wine and fruit.

He invited Vietnamese businesses to invest in construction, renewable energy, information and communication technology, agricultural product processing and financial services.

Businesses from the two countries introduced their products, potentials and needs during the event.

The Western Cape province, with a population of more than 7 million people or more than 10 percent of South Africa’s population, is considered a gateway to Africa.

During the first six months of this year, bilateral trade between Vietnam and South Africa reached nearly 700 million USD. It is expected to exceed 1.2 billion USD by the end of 2015.

RoK firms eye Thanh Hoa investment

Representatives of the Korea Chamber of Commerce and Industry, Korea Trade Centre, and Korean businesses have held a meeting with Vietnamese business executives in central Thanh Hoa province.

It was aimed at helping businesses from the two countries find partners and explore investment opportunities in the province for businesses from the Republic of Korea, reported Dau Tu (Vietnam Investment Review).

The two sides also signed a memorandum for developing bilateral trade cooperation, the paper said.

Nam Dinh strives to lure investment

More than 60 investors and representatives from apparel companies and financial institutes from different countries gathered in a workshop held in northern Nam Dinh provnce on June 27 to discuss policies to attract investment to the locality and its Rang Dong Garment and Textile Industrial Zone.

Participants learned about infrastructure, power capacity, waste and waste water treatment in the Rang Dong IZ, land for business expansion, and registration and administrative formalities, and local incentives for investors.

Chairman of the Nam Dinh People’s Committee Doan Hong Phong briefed the participants of the province’s potential of abundant, skilled and young workforce, convenient transport, improved telecommunication and healthcare infrastructure and services.

All industrial parks and clusters have solid and liquid waste treatment systems as well as residential buildings for workers, he noted.

The locality prioritises investment in the fields of industrial infrastructure development, green agricultural production, food processing and supporting industry for mechanics, electrics, electronics, textiles and garment, and footwear.

Investment in eco-tourism, education and healthcare services are also encouraged, he added.

Nam Dinh plans to have nine industrial parks, three of which have been put into use including the Hoa Xa, My Trung and Bao Minh IZs.

The 600-hectare Rang Dong Garment and Textiles IZ will be operational by the end of 2015.

Three cooperation projects between the province’s enterprises and foreign investors were inked during the event.

Awards given for best annual reports

Fifty companies were honoured on June 26 for issuing the best annual reports out of almost 600 companies listed on the Hochiminh and Hanoi stock exchanges that took part in the contest.

Of them, 37 are listed on HOSE and 13 on HNX.

The HCM Securities corp. (HSC), which also won the Best of the Best Award, Bao Viet Holdings (BVH), Vietnam Dairy Products JSC (VNM) and PetroVietnam Drilling & Well Services Corp. were among the Top 10.

HSC, VNM and BVH also won the top three prizes for Best Corporate Governance Content.

The Sustainability Reporting Awards were given to five firms – PVD, VNM, BVH, Imexpharm (IMP) and FPT Corp (Financing and Promoting Technology). The jury for selecting the winners from 87 reports that featured sustainable development issues included the World Bank's International Finance Corporation and the UK-based Association of Chartered Certified Accountants.

HOSE CEO Phan Thi Tuong Tam, who was the head of the organising committee and chairwoman of the selection board, said: "Thanks to tremendous efforts by the authorities, media partners, exclusive sponsor, listed firms and other participating institutions, throughout the past eight years the Annual Report Awards have seen the quality of reports rising substantially with more transparent and detailed contents and professional presentation.

"Even better, some firms have aligned their reports to fit international reporting standards. These are indeed remarkable improvements and a great force in making the Vietnamese stock market more transparent."

Pham Nguyen Vinh, business development director at Dragon Capital, said: "Improvements in the annual reporting process and increasing information transparency of listed companies in general will boost the competitiveness of the Vietnamese stock market in terms of attracting foreign capital and helping avoid excessive volatility in capital flows."

Nguyen Nguyet Anh, corporate governance officer at IFC Vietnam and member of the selection board, said: "Many firms have showed a dramatic development when they leverage annual reports as an important channel to connect with investors. The corporate governance section in many reports is also in line with the best international standards."

Experts judging the Sustainability Report Awards from the IFC and ACCA said it was exciting to see many more firms paying close attention to sustainability reporting during the three years since the awards were instituted.

To Vi Hung of the ACCA, the head of the selection board for the Sustainability Report Awards, praised the reports for having greater detail now and including more social and environmental objectives besides the firm's charity activities.

Another highlight of this year's award is the increasing number of firms that have used the IFC's criteria and GRI's G4 Standards as references. Such reports are often clearer, more detailed and more reliable, which results in better scores for the firms.

The ceremony this year also included a seminar on corporate governance attended by experts from the Central Institute of Economic Management, leading ASEAN firms, Dragon Capital, and HOSE.

Da Nang puts into use solid waste treatment complex

The first stage of the Khanh Son solid waste treatment complex in the central city of Da Nang was commissioned on June 27.

The two-phase project worth 900 billion VND (42.25 million USD) is being built on 10 hectares.

The fist stage of the project has an investment of nearly 400 billion VND (18.6 million USD) and is able to treat 200 tonnes of waste daily.

Meanwhile, the second phase is hoped to be completed by late 2016 with a designed daily capacity of handling 700 tonnes of waste.

Director of the Vietnam Environment JSC Nguyen Van Tuan said the complex is equipped with modern and environmentally-friendly technologies, which could fully treat unburied solid waste and produce renewable energy products from the waste.

Once fully operational, the complex is capable of treating nylon, organic waste and glass bottles, he added.

Director of the municipal Department of Natural Resources and Environment Nguyen Dieu said the project will help the city address environmental contamination issues and build a green city in the future.

Vietnam to boost export to Chinese market

A workshop focusing on strengthening business cooperation and boosting exports to the Chinese market was held in Ho Chi Minh City on June 26.

Addressing the workshop, Deputy Director of the Ho Chi Minh City branch of the Vietnam Chamber of Commerce and Industry (VCCI) Nguyen The Hung said two-way trade between Vietnam and China has seen notable growth but still failed to match the potential.

According to Hung, Vietnamese enterprises should actively update market information in order to boost exports to China, heading to a trade balance between the two countries.

The VCCI will speed up several activities in the coming time to help Vietnamese businesses penetrate effectively into the Chinese market, he added.

According to an official from the Chinese Consulate General in Ho Chi Minh City, China is willing to create favourable conditions for Vietnamese enterprises to access its market and increase investment and business activities in China.

In the next five years, Chinese direct investment overseas will exceed 500 billion USD, creating great opportunities to businesses in the Asia-Pacific region, including Vietnam, he said.

In the first five months of 2015, Vietnam exported goods worth 6.1 billion USD and imported 15.9 billion USD of commodities from China, resulting in a trade deficit of 9.8 billion USD.

Vietnam mainly exported crude oil, coal, computers, telephones, vegetables, and aquatic products while importing machines, equipments, steels, and fertilizer.

Online government bond transaction system launched

The Hanoi Stock Exchange (HNX) coordinated with the State Treasury to launch an online government bond transaction system (E-BTS) on June 26.

According to the HNX, the E-BTS is expected to make the government bond market more lucrative, attracting more domestic and international capital to Vietnam’s bond market, eventually contributing to liquidation.

Addressing the ceremony, Vice Chairman of the State Securities Committee Nguyen Thanh Long said the E-BTS is an important springboard to continually develop the government bond market, preparing it for integration into regional and international markets.

The HNX and relevant agencies, Long said, would continue improving infrastructure, develop new products, research and build legal documents for the derivatives market.

He believed that the HNX, the Vietnam Securities Depository, members of the market and relevant units would successfully build the derivatives and Vietnam securities markets, gradually integrating into regional and world markets.

The HNX also reported over 85 trillion VND (3.9 billion USD) worth of government bonds were sold in the first half of the year, down 37 percent annually.

Of which, the State Treasury mobilised 70 trillion VND (3 billion USD), the Bank for Social Policies drew six trillion VND and the Vietnam Development Bank fetched nine trillion VND (412.5 million USD).

It is a relatively positive picture of the secondary transaction market with the value of outright and repos transactions in the first six months continually on the rise from the same period last year.

Outright transactions amounted to 300 trillion VND (13 billion USD) while the amount of repos transactions was 141 trillion VND (6.5 billion USD). The average daily transaction value was 4.2 trillion VND (192 million USD).

Fair looks to develop agriculture seeds

A fair featuring nearly 300 booths on agriculture seeds was opened in Ho Chi Minh City on June 26 with the participation of 120 businesses from across the country.

Deputy Director of the municipal Department of Agriculture and Rural Development Nguyen Van Truc said the fair creates an opportunity for scientists and businesses to study new, high-yield and competitive strains suitable for the production conditions of each region.

Since 2000, HCM City has implemented a programme in the field, aiming to become one of the leading producers and suppliers of high-quality animal, crop and seafood varieties for cities and provinces nationwide.

Last year, local businesses created about 15,400 tonnes of seeds and 9.5 million flower varieties while supplying over 24,000 milk cow and 900,000 pig breeders.

The outcomes were attributed to the city’s investment in studying high-yield seeds for animals and plants, said Chairman of the municipal People’s Committee Le Hoang Quan.

It is also key to improving productivity and quality and opening up new prospects for the city’s agriculture restructuring, he added.

The three-day fair is expected to promote the city’s farm produce and increase goods value for farmers.

It is also intended to reduce dependence on seed imports and improve competitiveness, especially as free trade pacts with foreign countries are implemented.

HCM City responds to tax and customs inquiries

A dialogue was held on June 26 in Ho Chi Minh City between domestic enterprises working in the city’s export processing and industrial zones and several involved bodies concerning governmental regulation and tax policies.

Attendees included those from the Investment and Trade Promotion Centre of Ho Chi Minh City (ITPC), Ho Chi Minh City Export Processing and Industrial Zone Authority (HEPZA) and municipal taxation and customs departments.

During the meeting, tax and customs department representatives gave an overview of changes in tax and custom regulations regarding tax calculations, tax refunds and goods classification.

The departments recommended that enterprises should examine new regulations and actively seek government authority consultations to ensure smooth tax and custom clearance procedures.

The new law on customs allows companies from export processing and industrial zones to request customs bodies for advance declaration of tax prices, item codes and the goods’ country of origin, said an official from the department of customs.

The enterprises are required to make themselves fully aware of e-customs procedures to avoid rejections or mistakes, he added.

FDI projects: high quantity, small scale

There was a greater number of foreign-invested projects in the first six months of 2015 as compared to last year, but with smaller scale operation.

According to the Foreign Investment Department, the number of foreign direct investment (FDI) projects during the period increased 15.4 percent and 28.3 percent annually in terms of new businesses and ones registering additional capital, respectively.

Accordingly, 757 new FDI projects were licensed with a combined registered capital of 3.83 billion USD while 281 existing projects increased their registered capital, adding 1.65 billion USD.

The total capital of 5.49 billion USD reflected an annual funding drop of 19.6 percent, attributable to the small scale of 2015 projects.

The processing and manufacturing sector reeled in the most overseas capital worth 4.18 billion USD distributed among 338 new and 190 existing projects, followed by realty and commerce.

The Republic of Korea has been the top foreign investor in Vietnam with 1.52 billion USD poured into the country within the period. The British Virgin Islands, Turkey and Hong Kong (China) were close behind; each channelled more than 600 million USD into their local projects.

Among 42 FDI destinations nationwide, southern Ho Chi Minh City, Dong Nai province and northern Hai Phong city dominated, receiving 1.12 billion USD, 1.03 billion USD and 433.7 million USD respectively.

The mid-year disbursement of foreign funds reached 6.3 billion USD, up 9.6 percent year on year.

Six-month FDI export value reached 54.88 billion USD, a 15.3-percent annual rise and occupying 71 percent of Vietnam’s overall export turnover.-

Kien Giang picks shrimp, rice for farm restructuring

Kien Giang Province, the country's largest rice producer, has chosen rice and brackish-water shrimp as major products for agricultural restructuring.

Mai An Nhin, deputy chairman of the provincial People's Committee, said the area for rice cultivation would remain the same, but that crops would be rotated on paddy fields.

Areas unsuited to rice cultivation would be used to grow vegetables and cash crops.

This year, the province's Department of Agriculture and Rural Development plans to shift 4,000ha devoted to rice cultivation to corn, soybean and sesame.

Kien Giang has converted 135ha of fields from rice to corn and 379 ha from rice to sesame this year, mostly in Giang Thanh and Hon Dat districts.

Farmers who participate in rotating crops on paddy fields will be given financial support of 60 per cent to buy seedlings and 30 per cent to buy material inputs. They will also receive training in farming techniques.

Nguyen Van Tam, the department director, said restructuring aimed to ensure high efficiency, quality and added value via specialised and intensive farming.

Restructuring would also link agricultural production with outlets that can guarantee, process and export goods.

The province has 770,379ha of rice, with a total yield of 4.5 million tonnes in 2013.

This year, the total area for rice in the province fell to 761,184ha but the rice yield is expected to increase to 4.6 million tonnes, according to the department.

This year, the cultivation of high-quality rice rose from 67 per cent in 2013 to 70 per cent of the total rice crop.

Kien Giang has also invested in infrastructure for agricultural production, built closed dykes and set up electric pumping stations to reduce production costs.

The province targets developing large-scale rice fields to 57,000ha in 2017 and 100,000ha in 2020.

The province has 90 large-scale paddy fields with a total area of 10,790ha.

In the 2014-15 winter-spring rice crop, farmers have had an average yield of 7.25 tonnes per ha, up 0.04 tonne against the 2013-14 winter-spring rice crop.

With the increasing yield of rice in recent years, the lives of many farmers have improved.

Pham Thi Sang in Tan Hiep District's Tan Hiep A Commune said her family had harvested 7.8 tonnes of rice per ha in the 2014-15 winter-spring rice crop.

"With a bumper harvest, the life of my family is better," she said. "Other farmers in my area also had a bumper harvest."

In a related matter, the province has also decided to expand the shrimp breeding area under industrial and semi-industrial methods in the Long Xuyen Quadrangle and U Minh Thuong area.

The province has applied advanced techniques in breeding shrimp, including Global Good Agricultural Practices (GlobalGAP).

This year, farmers have bred more than 95,000ha of shrimp. Of the figure, 1,078ha were bred under industrial and semi-industrial farming methods and the rest under extensive farming and in fields rotating between shrimp and rice.

Ho Chi Minh City economy maintains growth momentum

The southern metropolis Ho Chi Minh City has maintained its growth momentum for four consecutive years, the municipal People’s Committee told a meeting on June 24.

The city’s gross domestic product (GDP) value reached 417 trillion VND in the first half of this year, up 8.55 percent annually – the highest rise in the past three years, buoyed by services, industry and construction, and agriculture with increases ranging from 6-9.8 percent, said Director of the municipal Department of Planning and Investment Thai Van Re.

Trade, export-import and banking credit also recorded impressive growth.

The total goods retail and service value was estimated at 323.2 trillion VND, up 10.9 percent year-on-year.

As of late June, local credit organisations raised more than 1.38 thousand trillion VND (63.48 billion USD), soaring 14.82 percent from last year’s corresponding period, while outstanding loans totalled 1.125 thousand trillion VND (51.75 billion USD), reflecting a good flow of capital.

Under a business-bank connectivity scheme, about 1,500 individual business clients have accessed over 65.7 trillion VND (3 billion USD) in loans.

In the industry area, the industrial production index expanded by 6.5 percent, with a gradual shift towards processing and manufacturing industries and less reliance on mining.

In industrial, processing and hi-tech zones, the new and additional investments surged 87 percent yearly to over 623 million USD, equivalent to 89 percent of the target.

On revenues to the State budget, the city contributed over 134.7 trillion VND (6.1 billion USD), 47 trillion VND (2.1 billion USD) of which was from exports.

For the rest of this year, the municipal authorities will continue assisting businesses in improving competitiveness by technology adoption and marketing.

The manufacturing sector will benefit from a support industry development strategy which is in the pipeline.

Le Hoang Quan, Chairman of the municipal People’s Committee, informed that the city is also reshuffling the Steering Board for International Economic Integration.

Trade and investment promotion activities will keep going on with the support of credit institutions, towards achieving goals mentioned in the Government’s banking restructuring scheme.

Hungarian firms updated on Vietnam’s investment incentive policies

Hungarian businesses were provided with updated information related to Vietnam’s investment and tariff incentive policies during a workshop held recently by the Vietnamese Embassy in Hungary and the Chamber of Commerce and Industry of Vas county.

Speaking at the event, Ambassador Nguyen Thanh Tuan shared that the Vietnamese Government regularly revises policies so as to facilitate business and investment of domestic and foreign enterprises.

As a developing economy, Vietnam has great demand of capital, technology, equipment and materials for production and consumption activities, he noted.

The ambassador stressed that the 65-year traditional friendship between the two countries serves as a firm foundation for closer link in the coming time.

President of Vas County Council Laszlo Majthenyi affirmed that the county authorities will create most favourable conditions for the two sides’ companies to do business with each other.

Meanwhile, President of the Chamber of Commerce and Industry of Vas county Kovacs Vince suggested textile and garment, food processing, pharmaceutical product and tourism as fields of good potential for partnership between Vietnamese and Hungarian firms.

Commercial counsellor Nguyen Trung Dung made detailed introduction on Vietnam’s socio-economic situation, investment climate, as well as the market and policies related to investment and taxation.

He pointed to possible problems due to geographical distance and differences in language, culture, business practices and consumption habits between the two countries, proposing that the two sides need to enhance the exchange of business delegations and organise more goods exhibitions and fairs to promote mutual understanding.

During the workshop, Vietnamese and Hungarian firms had direct meetings to share their demand and cooperation opportunities.

Vietnam Airlines offers special promotion on Japan route

The national flag carrier Vietnam Airlines is offering a promotion on its flights between Hanoi and Japan’s Haneda Airport in Tokyo on the occasion of the route’s one year anniversary.

Accordingly, return tickets for Hanoi- Haneda will be 10,750,000 VND (500 USD) for economic class, and 21,478,500 VND (999 USD) for business class.

The special rates will be applicable for flights departing from June 25 to July 31, 2015, and does not include taxes, fees, and additional charges.

Vietnam Airlines officially operated the route on July 1, 2014 with seven flights a week. It is the company’s ninth routes between Vietnam and Japan.

Tra Vinh distributes soft loans to develop agriculture

Banks and financial institutions in the Mekong Delta province of Tra Vinh have offered over 7.65 trillion VND (35 million USD) in soft loans as part of the State’s agricultural and rural development policies for local farmers during the first half of 2015.

According to the provincial Department of Agriculture and Rural Development, as many as 7.63 trillion VND worth of loans have been provided to some 214,000 farmers, representing of 55.7 percent of the province’s total gross loans.

Some 49 farming households have taken out a combined loan of 19.5 billion VND (nearly 894,000 USD) to purchase agricultural equipment, mostly combine harvesters, in accordance with Decision No. 68/2013/QD – TTg by the Prime Minister to reduce post-harvest losses.

Another 5.9 billion VND (over 270,000 USD) in credit was lent to help farmers switch from rice farming to fruit and vegetable growing.

In addition, the provincial authority has organised ten agricultural training courses for 250 local farmers to help them apply advanced technology in production.

Yen Bai mobilises 2.5 trillion VND to develop rural transport system

The northern mountainous province of Yen Bai has mobilised 2.5 trillion VND (116.3 million USD) over the past five years to develop rural transport systems, heard a conference held in the locality on June 24.

Of the total amount, 800 billion VND (37.2 million USD) was sourced from the state budget, 515 billion VND (23.9 million USD) from the provincial budget, 600 billion VND (27.9 million USD) was contributed by local residents and the remaining was from official development assistance and other social funds.

The fund has been used to build over 463 kilometres of concrete roads, enlarge over 966 kilometres of dirt roads and build 42 concrete bridges and 19 suspension bridges. Rural transport facilities in the locality have seen stellar improvement, creating an impetus to develop the local socio-economy.

Speaking at the event, Deputy Minister of Transport Nguyen Hong Truong spoke highly of the achievements made by the province in the past few years while calling for further activities to foster rural transport construction to meet local socio-economic development.

He added that the province should mobilise additional social resources and seek suitable mechanisms to improve rural transportation while ensuring traffic safety in the locality.

Ta Van Long, Standing Vice Chairman of the provincial People’s Committee, said that the province sees rural transport system development as a key mission for the next few years, adding that transport sector and relevant agencies need to study and build projects to develop rural transportation in 2016.

He also underscored that Yen Bai localities must enhance road maintenance and management to ensure sustainable transport infrastructure.

On the occasion, 12 organisations and five individuals were presented with certificates of merit from the Minister of Transport for their contributions to rural transportation development.

Binh Duong: FDI attraction already surpasses yearly target

The southern province of Binh Duong has attracted over one billion USD in foreign direct investment (FDI) in the first six months of 2015, surpassing its set target for the whole year.

According to Director of the province’s Planning and Investment Department Nguyen Thanh Truc, the province has licensed 102 new projects with registered investment of 712 million USD, and allowed 66 existing projects to increase their capital in the period.

Among total registered investment capital, 270 million USD has been poured into supporting industries.

According to Chairman of the province’s People Committee Tran Van Nam, three big FDI projects with a total investment of three billion USD are pending in 2015, including tourism projects in Dau Tieng and BacTann Uyen districts and a garment and textile project. They are in the process of evaluating the investments’ impacts on the environment.

The province is currently home to 2,490 valid FDI projects with a total capital of 21.3 billion USD, generating jobs for hundreds of thousands of workers.

The Viet Uc Group, Vietnam’s leading juvenile shrimp supplier, is looking to receive Ca Mau province’s approval to invest in hi-tech shrimp farming in the locality.

The group’s Chairman and CEO Luong Thanh Van said that Ca Mau city has the most favourable conditions to implement the project, should it be accepted.

The group has succeeded in carrying out hi-tech shrimp farming in several places in Vietnam. Scientific and technological advances will be applied in selecting and caring for seeds and processed shrimp products will meet international standards, he added.

Earlier, the group invested in a project producing juvenile shrimp in Ca Mau’s Ngoc Hien district. The 60-billion-VND farm, which began operations in May, is expected to produce 7 billion juvenile shrimp.

Director of the provincial Department of Planning and Investment Mai Huu Chinh pledged to create favourable conditions for the group to carry out the project once it receives local authorities’ seal of approval.

In 2014, the Viet Uc Group produced 51 billion juvenile shrimp, accounting for 22 percent of the country’s market share.

Fair held to market products to RoK importers

An exhibition opened in HCM City on June 24 to introduce typical Vietnamese products to importers from the Republic of Korea (RoK).

This is the second time the event has been organised. Around 60 enterprises attended the event, displaying a wide range of high-quality and prestigious products.

Municipal authorities said 200 typical products would be promoted in the RoK market.

Hong Won Sik, General Director of Lotte Mart Vietnam, said the fair is a good opportunity for enterprises to create links to expand their local and foreign market.

Phan Thanh Minh, Head of the Ministry of Industry and Trade’s branch in HCM City, said the fair has become an effective channel, helping identify Vietnamese products that meet RoK consumer tastes.

Quang Ngai unveils hi-tech agricultural planning

The management board of the Dung Quat Economic Zone in the central province of Quang Ngai announced a detailed plans for the hi-tech agriculture zone on June 24.

The zone, spanning across 190 hectares in Binh Hoa commune, Binh Son district, is one of 22 zones across the country receiving the Prime Minister’s approval for implementation.

The zone is divided into a hi-tech area, outdoor flower area, bonsai area, fruit tree area and ecological fish farming lake.

It also includes buildings used for management, training employees, displaying products, commercial services and warehouses.

The zone will serve as Quang Ngai’s centre for transferring and expanding hi-tech farming models.

Investment law ready to implement

New points in the Investment and Enterprise Law 2014, which go into effect next month, caught the attention of business players attending a seminar in HC M City yesterday.

The Investment Law has regulations that mark significant progress in administrative overhaul, including slashing the time to process foreign investment registrations from 45 to 15 working days.

It also raises the responsibility of investors, particularly through deposit requirements and equipment quality appraisals.

Based on reviews of 386 business sectors, the new investment law specifically regulates a list of valid business areas and six that are prohibited.

It also streamlines the share purchase process, saying that any entity with more than 51 per cent of its assets and charter capital held by foreigners is to be treated as a foreign-invested firm, said Deputy Director of the Ministry of Planning and Investment's Legal Department Quach Ngoc Tuan.

New points in the Enterprise Law include business registration certificates with information regarding business codes, headquarters addresses and legal representatives. Business areas will be declared in business registration application forms.

The law also abolishes some requirements for professional certificates, shortens business registration timelines and adds criteria for State business executives.

It also requests the release of transparent information from firms with State capital up to international standards, among others, said the head of the Central Institute for Economic Management's Business Environment and Competitiveness Department Phan Duc Hieu.

The Investment and Enterprises Law was designed to uphold the business freedom of enterprises while simultaneously focusing on equal treatment between domestic and foreign investors to ensure they comply with international treaties.

EU warns FTA means VN reform

Once the Viet Nam-EU free trade agreement (FTA) is signed, Viet Nam will need to renovate its economic policies and institutions and be prepared for agreement enforcement, said Danish Ambassador to Vietnam John Nielsen yesterday.

Speaking at a workshop on the FTA, jointly held by the Central Institute for Economic Management (CIEM) and the Danish Embassy, Nielsen said that challenges accompanied the agreement, including requirements to improve product quality, competitiveness and the business and investment climate.

CIEM Director Nguyen Dinh Cung said the benefits brought by FTAs depended heavily on policy and institutional reforms. These would turn challenges into opportunities and opportunities into benefits.

Cung said Viet Nam had to modify its policies, mechanisms and institutions to increase the positive impacts of the agreement and reduce negative impacts.

Delegates shared international experience in renovating institutions and adjusting policies learned by developing countries when enforcing FTAs.

Viet Nam and the EU started negotiations on the agreement in June, 2012, and have so far undergone 12 rounds of discussions. Along with tariff cuts and trade facilitation, commitments include investment, the environment, competition and sustainable development.

The FTA between Viet Nam and the EU, once signed, could help expand Viet Nam's GDP by 7-8 per cent by 2025. Viet Nam's exports to the EU are likely to increase by 10 per cent.

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