Govt inspectorate: Violations found at PVC’s projects

PetroVietnam Construction Joint Stock Corporation (PVC) committed many violations in the projects which it carried out as a contractor, the Government Inspectorate told a press briefing late last week.

Local media quoted Ngo Van Khanh, deputy head of the Government Inspectorate, as saying that the agency had inspected Vietnam National Oil and Gas Group but the large number of units under its umbrella made it impossible to do a thourough inspection.

Violations of PVC during the time Trinh Xuan Thanh, who has recently been disqualified as National Assembly deputy, was serving as chairman, took place at abandoned projects like a biofuel plant in Phu Tho Province and Dinh Vu yarn plant in Haiphong City.

“This is an extraordinary inspection, but the final conclusion is not available yet,” Khanh said.

Therefore, violations at PVC are not only related to losses of over VND3.3 trillion.

Khanh added the Government Inspectorate will report to the Prime Minister and propose heavy punishments.

Thanh rose through the ranks  at PVC before his suspension in May 2013. PVC incurred accumulated losses of over VND3 trillion as of the end of 2013.

In 2011, Khanh said, the inspection found PVC incurring losses of VND3.3 trillion in 2011-2013 during which Trinh Xuan Thanh was serving as chairman. Khanh said Party General Secretary Nguyen Phu Trong ordered relevant agencies to clarify PVC’s huge losses.

BIDV opens branch in Myanmar

The Joint-Stock Commercial Bank for Investment and Development of Vietnam (BIDV) will inaugurate its branch in Myanmar late this month in the framework of a tourism forum themed “Four countries – One destination”.

The forum initiated by BIDV will take place in Myanmar on July 30 – August 1, aiming to expand cooperation and connect key economic industries like tourism, finance and banking among Cambodia, Laos, Myanmar and Vietnam (CLMV).

Ha Van Sieu, Deputy Director of the Vietnam National Administration of Tourism, said there will be a wide range of activities in the forum’s framework including discussion of measures to boost economic, trade and tourism cooperation among the four countries, expansion of cooperation in banking, a Tourism Ministerial Meeting and signing of cooperation deals among ministries and businesses.

The forum is expected to draw around 500-600 delegates and each country will send in 30 businesses.

Hoang Anh Gia Lai Group will also open Melia Yangon Hotel to the public on the occasion.

Nguyen Viet Ha, Relationship Manager at BIDV, said BIDV is one of the first 13 foreign banks licenced to set up branches in Myanmar and the first Vietnamese bank to open branch in the country.

BIDV pledged to help other Vietnamese businesses seek investment and business opportunities in the potential market, he said.

Vietnam, France to prioritise cooperation in green growth

Vietnam and France decided to prioritise cooperation in green growth and easing the impact of climate change on agriculture during the Fourth High-Level Economic Dialogue in Paris on July 25.

The two sides agreed to work to remove barriers to market access in order to boost bilateral trade and investment collaboration between businesses.

They also looked into key French ODA-funded projects covering the Hanoi Train Station-Nhon urban metro rail, medical equipment supply for the Can Tho city General Hospital and the launch of the second remote sensing satellite VNRED Sat-2.

At the annual dialogue, Vietnamese Deputy Minister of Planning and Investment Nguyen The Phuong and French Minister for Foreign Trade, the Promotion of Tourism and French Nationals Abroad Matthias Fekl described the event as part of preparations for the State visit to Vietnam by French President Francois Hollande early September.

Fekl stressed that France attaches importance to its relationship with Vietnam – one of the most dynamic economies in the Southeast Asian region.

The official welcomed Vietnam’s open policy, which, he said, has prompted France to sign multiple agreements with Vietnam.

He suggested the two countries step up their affiliation in energy, health care, food safety, urban infrastructure, environment and digital services.

With strength in technology, French companies can meet Vietnam’s development demands, he said.

A delegation of leading French businesses is scheduled to accompany President Hollande during his visit to Vietnam, Fekl noted, expressing his hope that the trip will create a boost for the development of the two countries’ comprehensive relations.

Phuong said that the annual dialogue offers an opportunity for the two countries to promote their bonds in economy, trade, investment and development.

Vietnam places importance on its economic ties with France, he said.

Global leader in storage tanks and covers, CST Industries, has deepened its footprint in Vietnam via a distribution contract signed with Son Ha Group, choosing the nation as a very sensible destination for the US-based company to invest in a manufacturing site in the near future.

Asia’s and Vietnam’s leading manufacturer of stainless steel household and industrial products, Son Ha Group (HOSE: SHI), following the strategic co-operation agreement concluded with CST Industries last week, will be distributing CST factory coated tanks and covers, including CST Industries large capacity storage tanks, in the domestic market.

CST Industries has grown to be the world-largest manufacturer of coated tanks, yet has been paying great attention to the Asian market, including Vietnam. CST Industries has transitioned from an export business of tanks to an international one, with a focus on extending to Asia, when it first opened its Singapore office in 2007.

“Looking at the market, we needed skills, that are very expensive in Singapore,” said Joe Brennan, CST Industries’ managing director for Asia Pacific. “We therefore see a great future in Vietnam. We needed project managers, engineers, graphic engineers and of course Vietnam has a strong skill industry.”

CST Industries, as such, set up its regional headquarters in Vietnam, taking care of all Asia, a few years later, said Brennan.

The partnership with Son Ha, according to Brennan, is a result of CST Industries seeing a local company with long-term vision, as well as an established brand name and presence in Vietnam.

“When it comes to build larger, major projects with water, wastewater, and many applications you will see, Son Ha makes a great partner with CST Industries.”

“The link between us will open up opportunities to develop further and co-operate in the long-term. We’re committed with our partner to expand our network and bring the best products to our customers,” said Le Vinh Son, Son Ha’s chairman.

The Vietnamese market, according to Brennan, has moved out of the so-called “one house has to do all things”, and turned into a nation whose leadership has grown to the point that they “think more strategically about neighborhoods, infrastructure, about water supply, and how they control the waste stream.”

“It is not enough for an investor to come to Vietnam and [say] ok we’re going to produce beer, but where the wastewater will go, it has to go somewhere. And we provide solutions to store that and to treat it,” said Brennan. “And again, the leadership of the Vietnamese government is proving in very positive ways that allow investors to think strategically in this way.”

Through a partnership with Son Ha, CST Industries is also looking to expand its manufacturing site to Vietnam, with a “step by step” strategy, according to the Ho Chi Minh City-based managing director.

“The first step is we have brought engineering project management and the execution resources to manage our projects,” said Brennan, adding that “the second step, we have outsourced as we bring the panels from the US and then we source fabrication of galvanised stainless steel and components in Vietnam.”

“The third step, we’ve just announced that we are going to begin manufacturing our galvanised tank line in Vietnam,” Brennan told VIR. “The next step, of course, and it has to come with volume, is we intend at some point to open a manufacturing site in Asia, and certainly Vietnam makes sense to us.”

Trade deficit with Singapore continues to deteriorate

The trade deficit with Singapore in the first half of 2016 has continued to rear its ugly head despite the efforts of the private sector to increase the reach of their products into the Singaporean market.

Speaking at a recent Vietnam-Singapore Business Forum in Ho Chi Minh City, Doan Duy Khuong, vice chair of the Vietnam Chamber of Commerce and Industry (VCCI) said the trade shortfall for the first half of the year widened by US$1.07 billion.

Exports out of Vietnam to Singapore registered US$1.076 billion for the six-month period, while imports from the world’s only sovereign island city-state were more than double that figure, tallying in at US$2.57 billion, said Mr Khuong.

This gives us a pretty good indication the deficit may swell at least another US$1 billion by year’s end bringing the total deficit for 2016 to in excess of US$2 billion, a level it has stood at for the past four years.

Although Singapore is the largest trading partner of Vietnam within ASEAN, the deteriorating trade balance represents a drag on the overall GNP growth of Vietnam and is a discouraging sign for the economy, said Mr Khuong.

There needs to be a seismic change in the strategy to increase exports, he said and a more "methodical and comprehensive strategy" to reach every corner of the Singaporean market and build a credible consumer base.

In an effort to tame the ballooning deficit, business forums like these are held in order to identify and isolate areas for which we can get the trade balance, which is drenched in red, more on an even keel.

Our goal at meetings like these is to revisit our strategy for exports of traditional merchandise of clothing, footwear, leather, seafood, and ag and food items to Singapore, he added, and find access for other markets such as pharmaceuticals and information technology.

Unless we can chart out a long-term strategy to counter the influx of Singaporean goods into Vietnam markets, the trade deficit will continue to mushroom.

Meanwhile, he said, the lopsided trade figures between the two countries is further aggravated by the uneven investment flows.

The Foreign Investment Agency statistics show that Singaporean businesses have become one of the nation’s leading investor groups having registered investment of more than US$36 billion in numerous local business ventures.

Notably, there is little by way of foreign direct investment by Vietnamese domestic businesses in Singapore, which in large part accounts for the significant trade deficit, said Mr Khuong.

Singaporean businesses have established five industrial parks in Vietnam. The parks are located in Binh Duong, Hai Phong, Bac Ninh and Quang Ngai and have attracted close to 500 tenants from 23 countries.

These industrial parks have created more than 140,000 jobs in Vietnam.

WB helps Vietnam enhance competitiveness and accelerate green growth

On July 25, the World Bank (WB) and the State Bank of Vietnam (SBV) signed US$371 million agreements to support with economic competitiveness, climate change response and green growth, and water supply and waste water treatment.

The agreements were signed by SBV Governor Le Minh Hung, WB Vice President for East Asia Pacific region Victoria Kwakwa, and witnessed by Prime Minister Nguyen Xuan Phuc.

“Vietnam is keen to strengthen economic competitiveness and achieve a more green and sustainable development path. The WB is pleased to support the achievement of these priorities through the projects that we have signed today”, said Victoria Kwakwa, the World Bank Vice President for East Asia Pacific region.

The signed agreements cover Vietnam’s Third Economic Management and Competitiveness Development Policy Financing,  First Climate Change and Green Growth Development Policy Financing, and Additional Financing for Vietnam Urban Water Supply and Wastewater Project.

Vietnam’s Third Economic Management and Competitiveness Development Policy Financing is concluding a series of three operations which reinforced key government steps to bolster financial sector stability, reform the SOE sector and create a better business climate.

These reforms are critical to raise Vietnam’s competitiveness and medium growth potential. The series has served as the central platform for coordinated policy dialogue between the Government of Vietnam and several development partners, and has mobilized over US$1 billion from the WB and other partners, in flexible budget support financing, helping to meet some of the government fiscal needs.

This final operation provides a US$150 million WB loan and US$12 million co-financing grants, provided by the Governments of Switzerland and Canada.

The Climate Change and Green Growth Development Policy Financing of US$90 million is the first of a series of three operations to support climate change and green growth policy actions under the Vietnamese Government’s Support Program to Respond to Climate Change.

Policy actions under this credit will help improve coastal zone resilience through integrated management, protection of water resources and greater water use efficiency, as well as coastal forest development. It also supports policies to improve air quality, energy efficiency and investments in renewable to reduce greenhouse gas emissions. These policies will be important for the achievement of Vietnam’s COP21 commitments.

The US$50 million IDA Credit and US$69 million IBRD Loan of Additional Financing for Urban Water Supply and Wastewater Project aims to support provision of  more household connections in 10 cities across Vietnam.

It will also improve drainage system and build wastewater collection and treatment system in Di An Town of Binh Duong province to deliver better services to the 380,000 inhabitants of the town, and contribute to the control of water pollution into the surrounding Saigon and Dong Nai Rivers.

US considers Vietnam an important partner in ASEAN

On July 25, Politburo member and Head of the Party Central Committee's Economic Commission Nguyen Van Binh received in Hanoi US Treasury Under Secretary Nathan Sheets.

In his remarks, Mr Binh said he hoped the US would continue to support and accelerate the negotiations and signing of the TPP Agreement and help Vietnam realize the agreement to create an environment of peace, stability, and development in the Asia-Pacific region.

Vietnam is stepping up its deeper international integration into the region and the world and its signing of free trade agreements creates both opportunities and challenges, Binh said, adding that Vietnam wants the US to support and accelerate the finalization of the negotiation process of the Trans-Pacific Partnership (TPP).

The US Treasury Under Secretary, in turn hailed Vietnam’s achievements in socio-economic development and underscored the point that the US treasures the development of multi-faceted cooperation with Vietnam and considered Vietnam an important partner in ASEAN.

He said he believes the relationship between the two countries, especially after the TPP becomes effectivet, will flourish in the interests of each country, towards peace, stability, cooperation and development in the region and the world as a whole.

Vimico lists 200m shares on UPCoM

Vinacomin Minerals Holding Corporation (Vimico) listed 200 million shares (KSV) on the official unlisted market of UPCoM on July 28 in Ha Noi.

According to the Ha Noi Stock Exchange, each KSV share had a reference price of VND13,000.

Based in Ha Noi, Vimico has a charter capital of VND2 trillion (US$89.5 million). On April 23, it offered nearly 46.7 million shares to the public at VND10,500 each, but sold less than three per cent of the offering.

The firm, which operates in the field of mining, processing and trading of minerals, was equitised in October last year. The Viet Nam National Coal Mineral Industries Holding Corporation Limited currently has more than a 98 per cent stake in Vimico. As a gold-mining firm in Viet Nam, the firm expects to produce 690kg of gold this year. It also produces silver, iron and copper.

In the first quarter, the firm earned VND728 billion from sales. It plans a sale of VND3.85 trillion and before-tax profit of VND29.7 billion in 2016.

US Group seeks investment opportunity in Bac Ninh

US EcoloBlue Group representatives have worked with Bac Ninh provincial leaders to take into account the investment policy in the province.

Henri James Tieleman, President & CEO at EcoloBlue Life & Energy group specializing in producing water generators with state-of-the art technologies said EcoloBlue products use the least energy possible in generating water, and most importantly, generating water under 15C/59F and with less than 30% relative humidity, protected by an awarded US Patent 8,844,299.

He also expressed a desire to invest clean water-related fields.

EcoloBlue, Inc. has distribution in 17 countries, and a customer base that spans worldwide. EcoloBlue is the leader in the home/office market with over 10,000 customers in the US alone, and in the production of industrial volume of potable water in specific countries.

Chairman of Bac Ninh provincial People’s Committee Nguyen Tu Quynh reiterated the locality’s willingness to offer the best possible conditions for EcoloBlue investments.

After the working session, EcoloBlue leaders made a fact-finding tour of some clean water facilities in Bac Ninh.  

New factory to manufacture soles in Bình Dương

Taiwan’s Chin Li Plastic Industrial Co Ltd yesterday launched the construction of a factory to make shoe soles in the Mỹ Phước 2 Industrial Zone of the southern Bình Dương Province’s Bến Cát Town.

The US$50-million factory will be built on an area of 5ha and is scheduled to be completed by July 2017.

The factory products will meet the demand of local footwear companies, which are receiving more orders from the American and European markets.

Chairman of the provincial people’s committee Trần Thanh Liêm asked the company to complete necessary administrative procedures related to the construction and to apply advanced and environment-friendly technologies to put the factory into operation on time, creating jobs for the local people.

Footwear is one of the 24 key exports of the province since the beginning of the year, with the revenue reaching $1 billion, representing a year-on-year increase of 17 per cent.

Foreign-invested firms take control over footwear export

Foreign-invested leather and footwear enterprises are prevailing over local firms in export turnover, accounting for up to 80% of the combined sector’s total export value.

As of June this year, foreign-invested businesses made up 81.3% of the exports in the sector, while local firms held only 18.7%. The disproportion is forecast to continue.

According to statistics of the Department of Light Industry under the Ministry of Industry and Trade (MoIT), leather and footwear is one of Vietnam’s spearhead exports, with an average growth hitting 9.7% per year, making up between 8-10% of the country’s annual export turnover.

The industry has recorded strong growth in recent years, reaching US$14.88 billion in 2015, up 15.8% year-on-year.

In the first six months of this year, export turnover of the combined sector reached US$7.94 billion, with US$6.34 billion contributed by the footwear industry.

Vietnam now has great opportunities to develop the leather and footwear industry, especially through advantages from free trade agreements (FTAs) between the country and the European Union (EU), the Republic of Korea (RoK) and through the Trans-Pacific Partnership (TPP) agreement.

When the TPP comes into force, Vietnam will be able to enjoy preferential tariffs which can eventually be cut to zero percent when exporting its footwear products to TPP markets and if materials for the sector can be made domestically or imported from other TPP member nations.

However, Nguyen Duc Thuan, Chairman of the Vietnam Leather, Footwear and Handbag Association (Lefaso) commented that Vietnamese leather and footwear firms have been heavily dependent on imported input materials.

Local enterprises are meeting difficulties in fully taping into the advantages from FTAs because t hey have yet to obtain permits to build material processing factories for the footwear sector in Vietnam, while foreign-invested enterprises are favoured in the field.

Additionally, domestic firms also come up against obstacles in selling their products in the home market as they are subjected to fierce competition from well-know brands from around the world, Thuan said.

According to Truong Thi Thu Ha, deputy head of the MoIT’s Light Industry Department, the ministry approved adjustment to the development plan of the sector to 2025, with a vision to 2035, which aims to form a leather and footwear industry network towards facilitating the development of support industries and service sectors.

Vietnam expects to earn US$17 billion from leather and footwear exports this year.

As of now, Vietnam is one of the four largest footwear producers in volume in the world, and is also the third largest footwear exporter in value, after China and Italy. Domestic footwear products are shipped to 50 countries and territories worldwide.

Foreign trade value exceeds US$177 billion

Total foreign trade value as of July 15 was over US$177 billion, a year-on-year rise of 2.8%, according to statistics from the General Department of Vietnam Customs.

Key export products with good growth include clinker and cement (up 36.5%, equivalent to US$6 million), vegetables and fruit (up 28.7% or US$26 million) and rubber (up 18.3% or US$12 million).

Meanwhile, strong decreases were seen in the export of coal (down 98.9%, equivalent to US$3 million); iron and steel (48.3% or US$59 million); precious stone, non-ferrous metals and related products (36.9% or US$35 million); and chemicals (31% or US$16 million).

In the reviewed period, import value totalled nearly US$87.7 billion, falling 0.7% (US$584 million) from the same period last year.

Mutual funds put up good show in first half

In the first half of the year, many open-ended mutual funds have reported solid results, with their growth rates averaging 1.65-12%.

The highest growth in net asset value (NAV), estimated at 12%, was reported by balanced funds like VCBF Tactical Balanced Fund and VCBF Blue Chip Fund of Vietcombank, VF1 and VF4 of Vietnam Fund Management Company, and SSI-SCA of SSI Sustainable Competitive Advantage Fund.

Funds investing in debt saw lower growth rates of 1.65-4.84% due to less favourable conditions. Due to low and steady interest rates since 2015, returns on debt-focused funds have been modest.

In Vietnam, there are now 18 open-ended funds, including five debt funds, four balanced funds and nine equity funds, that have over over US$106.66 million under management.

There are six closed-ended funds including the Vietnam Enterprises Investments Limited and VAM Vietnam Strategic Fund.

Debt funds’ investments include government, corporate, municipal and convertible bonds, along with others like mortgage-backed securities.

A balanced fund is a mutual fund that generally has a 50-50 mix of stock and debt.

Admittedly, the majority of the mutual funds’ investments come from institutions that are their partners.

This has been especially true of MB Capital Value Fund, Bao Thinh Bonds Investment Fund and Vietcombank funds like VCBF-BCF and VCBF-TBF.

They have all seen their investments grow by 20 percent this year.

Market observers attribute the funds’ success to various reasons, one of which is the Government’s efforts to improve the legal framework for the securities market.

Accordingly, many new products are expected to be introduced in the near future, encouraging investors to further pump money into the funds.

The economic stability and improved incomes of the middle class in the country have also encouraged people to invest in financial products instead of depositing money in the banks as they used to do.

Some eight million Vietnamese now have a daily household expenditure averaging US$10-100, which is the criterion set by the Organisation for Economic Cooperation and Development for a family to be classified as middle class.

The country’s participation in the Trans-Pacific Partnership (TPP) agreement is also an important reason for securities, especially mutual funds, to become more attractive to investors.

The TPP deal is expected to bring an impetus to the Vietnamese economy to develop by hastening the process of economic reform so that it can adapt to TPP requirements.

This is also expected to improve the transparency of the securities market and raise it to international standards.

Analysts said, however, that authorities should consider tax breaks to encourage more investment in mutual funds.

US study finds TPP will provide modest gains for clothiers

A recently published US International Trade Commission study found that US clothing imports and exports would increase modestly under the proposed new 12-nation Trans-Pacific Partnership (TPP) free-trade region.

The study forecast that US clothing imports would rise by 1.4% for a total US$1.9 billion increase by the year 2032 while exports would most likely experiences a slight 0.3% rise, for a total US$10 million bump.

The 12 member countries currently negotiating the TPP pact are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam.

The study shows that Vietnam would benefit the most from the free-trade pact when it comes to manufacturing and exporting apparel to the US because tariffs would be eliminated on many items produced in the Southeast Asian nation, provided regional yarns and fabrics are used.

In 2015, US tariffs on clothing imports from Vietnam totalled US$10.5 billion, according to the study, and the average tariff rate was set at 17%.

Vietnam is the number two provider of clothing to the US, accounting for a 10% market share of all US apparel and textile imports. China is number one with consignments accounting for 38% of all apparel and textiles shipped into the US.

If the TPP is ratified and comes into effect, additional clothing imports from Vietnam are expected to be only moderate because of the country’s inability to meet many of the yarn-forward requirements needed to qualify for duty-free status.

Vietnam, said the study, purchases roughly 88% of its yarn and fabric from China, the Republic of Korea and Taiwan, which are not TPP members, and exports produced from these raw materials do not qualify for duty free import into the US.

Although there is some limited domestic textile production that takes place in Vietnam, only about one-fourth of it is considered export quality.

In addition, Vietnamese-produced yarns and fabrics are more expensive than similar items produced in China, contributing to a weakening of demand.

In 2014, Vietnamese yarns were estimated to be 5% to 10% more expensive than similar yarns manufactured in China while Vietnamese fabric prices were 5% to 8% more expensive than Chinese fabrics.

As of 2014, the study said, the textile industry of Vietnam consisted of 145 yarn spinners, 401 weaving facilities, 105 knitting mills, 94 dyeing and finishing plants, and seven nonwoven manufacturers.

Given the Southeast Asian nation’s immediate inability to produce yarns as required for duty-free entry, manufacturers have universally expressed concern that the demand for regionally made yarns would lead to higher prices in the immediate future and make Vietnam less competitive in supplying clothing to the US.

However, the study concluded that in the long run, increased domestic yarn and fabric production in Vietnam would shorten lead times and prices, benefiting the country’s apparel exports.

The report estimated that Vietnam has attracted only about US$1 billion of foreign direct investment to improve its fibre and textile capabilities far short of the requisite amount needed to provide any significant benefit from the TPP.

State-owned construction companies equitised at slow pace

The Ministry of Construction (MoC) is grappling with equitising its State-owned enterprises (SOEs) as the equitisation plan for 2015 has had its implementation deadline extended to Q2, and now Q3 of this year.

In its latest report, the MoC said the evaluation and building of equitisation plans for three major SOEs (the Song Da Corporation, the Vietnam Urban and Industrial Zone Development Investment Corporation – IDICO, and the Housing and Urban Development Corporation – HUD) cannot be finished until Q3.

It blamed the sluggish progress on the firms’ large size and scope of activities, leading to difficulties in the settlement of their debt, financial and land use problems.

The ministry said it will push ahead with SOE restructuring and equitisation, launching IPOs, and holding the first stakeholders’ congresses for companies whose equitisation plans have been approved, including the Construction Corporation No.1, the Building Materials Corporation No. 1, the Construction Machinery Corporation, and the Vietnam National Construction Consultants Corporation.

It is also urging its corporations to speed up the divestment of State capital and the building of SOE reorganisation plans by 2020, the MoC added.

Official data released earlier this year showed that companies wholly owned by the State or in which it has a major stake have a combined asset value of about 5 quadrillion VND, or 222.2 billion USD. These companies are currently administered by ministries and sectors.

The Ministry of Finance said the SOE restructuring should be accelerated to make sure the enterprises will operate in a more efficient manner.

Vietnam’s first energy-efficient glass factory opens

The Vietnam Glass and Ceramics for Construction Corporation (Viglacera) officially opened a factory producing the first made-in-Vietnam energy efficient glass in the southern province of Binh Duong on July 25.

The firm’s hi-tech glass project, the first of its kind in Southeast Asia, is capable of manufacturing 5 million sqm of glass annually.

It includes two phases. In the first phase, a production line with an annual capacity of 2.3 million sqm of glass is based at Tan Dong Hiep Industrial Park in Di An town, Binh Duong. The company will build another facility in the northern province of Bac Ninh with a designed capacity of 2.3-2.7 million sqm per year during the second phase.

The project uses technology and equipment provided by Von Ardenne GmBH from Germany, the world’s leading manufacturer of industrial equipment for vacuum coatings on materials such as glass, wafers, metal strip and polymer films.

Viglacera’s energy-efficient glass can save up to 45 percent of electricity consumed by air-conditioners and protect human health by blocking 99 percent of the sun’s ultraviolet rays.

On the same day, the corporation also began construction on a high-class porcelain factory at My Xuan A Industrial Park in Tan Thanh district, the southern province of Ba Ria-Vung Tau with a total investment of 481 billion VND (21.56 million USD).

The facility with a designed capacity of 750,000 products a year, is expected to be operational in the next 9 months.

Ministry earns $89m from divestments

The Ministry of Transport divested from several companies following Government directives, gaining more than VND2 trillion (US$88.9 million) during the first half of this year, said an official from the ministry.

Vu Anh Minh, Director of the Enterprise Development Department, told the local press that the amount represented about 130 per cent of the book values of the firms, and the ministry sent it to the enterprise rationalisation fund of the State Capital Investment Corporation (SCIC).

The ministry withdrew all State stakes from four companies, including Civil Engineering Construction Corporation No 6 (Cienco 6), Transport Engineering Design Inc, Waterway Transportation Corporation, and Viet Nam Motors Industry Corporation. It withdrew a 23 per cent stake from Cienco 5.

During H1, the ministry also directed its corporations to divest from 11 joint stock companies, collecting nearly VND141 billion, or 160 per cent of their book values.

It was conducting schemes to divest from two inland waterway management and maintenance joint stock companies, Wamico No 1 and Wamico No 10.

It proposed with the Government plans to divest from some other joint stock companies, including three road construction and management firms, a company of the Viet Nam Maritime University, and a company of the HCM City University of Transport.

Minh said the ministry transferred the right of State ownership at Thang Long Corporation, a traffic infrastructure construction company, to the SCIC. A similar transfer process is underway at the Transport Investment Cooperation and Import Export JSC.

The SCIC will also represent the rights of State ownership at Cienco 5, Cienco 8 and Waterway Construction JSC, instead of the ministry, in the future.

Minh said the ministry will continue to direct some other corporations, including Viet Nam Railways, Viet Nam Maritime Safety – North and Viet Nam Maritime Safety – South, to withdraw capital from non-core lines of business.

Vietnam Airlines, Cuu Long Corporation for Investment Development and Project Management of Infrastructure, Viet Nam Expressway Corporation and Viet Nam Maritime University are also to do the same, he said.

The ongoing divestments, along with the equitisation of State-owned enterprises, are part of national efforts for economic reforms that need to be accelerated in Viet Nam.

In a related development, the Government is mulling the establishment of a special committee to manage capital at dozens of SOEs in various areas, in a context that they are ineffectively administered by ministries and sectors.

Although the SCIC was established 10 years to manage State interests in companies and projects, ministries and sectors still reportedly assume a dominant role in administering State utility firms for certain interests.

HCM City ornamental fish exports rise

HCM City has exported 8.6 million ornamental fish in the first seven months of the year, an 18.2 per cent increase year-on-year, according to its Department of Agriculture and Rural Development.

The country's main ornamental fish production hub is home to around 300 businesses, mostly situated in districts 9, 12, Binh Chanh, and Cu Chi.

They breed more than 60 varieties of fish and mostly export to the EU, America, Africa, and Asia.

However, the domestic market has not developed much, ornamental fish producers and exporters said.

Tran Van Son, deputy head of the city Sub-department of Quality Management and Fisheries Resources Protection, said the domestic market has not developed much because of the limited space available to sell the fishes and the fact that sellers lack close linkages.

To address the shortage of space, the city administration has tasked districts with suggesting a place to build an ornamental fish trading centre, he said.

They have been instructed to co-operate with neighbouring provinces like Dong Nai, Long An and Tien Giang that have advantages in terms of land, water and experience in ornamental fish farming to raise the fish in natural ponds, he said.

The businesses should be provided with favourable investment conditions to produce high-quality fish fries and adults for export, he said.

The city People's Committee has approved a plan for ornamental fish farming that targets production of 150-180 million fish a year by 2020 and export of 30-50 million fish worth US$50 million.

Last year exports were worth more than $12 million.

Viglacera begins construction on porcelain factory

The Viet Nam Glass and Ceramics for Construction Corporation (Viglacera) started construction on My Xuan Viglacera Porcelain Factory in the southern province of Ba Ria–Vung Tau on July 25.

The VND482-billion factory, covering a site of 50,000sq.m. in My Xuan A Industrial Zone, is expected to be operational after nine months of construction and is designed to produce 750,000 porcelain products per year.

The factory will be equipped with modern technologies and will supply high-quality products and well-known brands, popular in the regional and international markets.

VietinbankSC issues nearly 6.7 million bonus shares

Vietinbank Securities Corp (VietinbankSC) has issued nearly 6.7 million shares to more than 3,700 shareholders as dividends for the company's performance last year, the company said in a statement yesterday.

The share issuance was conducted in accordance to the resolution reached at the end of the company's shareholder meeting in late April.

The issuance has increased the firms' total number of shares to more than 90.4 million shares, including more than 36,700 buyback shares.

The securities company has also raised its capital by about 8 per cent to VND904.2 billion (US$40.2 million).

VietinbankSC, listed as CTS on the Ha Noi Stock Exchange, yesterday fell 1.6 per cent to close at VND6,300 per share.

US expected to import Vietnamese star apples

The United States Department of Agriculture (USDA) may allow the import of star apples from Viet Nam, Viet Nam's Commercial Counsellor in the United States Dao Tran Nhan said.

The import is scheduled to begin in the fourth quarter of this year.

According to the proposal from the Viet Nam National Plant Protection Organisation (NPPO), the USDA's animal and plant health inspection service (APHIS) completed a pest risk analysis that was published in the July 19 federal register.

Based on its analysis, APHIS determined that the application of one or more designated phytosanitary measures would be sufficient to mitigate the risks of introducing or disseminating plant pests or noxious weeds through star apple imports.

Scientists said Vietnamese star apples could be safely imported into the continental United States if they met several conditions.

The fruit is required to be treated with APHIS-approved treatments to address pest risks. The commercial consignments must also be accompanied by an export certificate, issued by APHIS' counterpart in Viet Nam, with a declaration that the fruit was prepared for export in accordance with the import requirements.

The shipments will also be subject to inspection upon arrival at the port of entry into the continental United States.

Pending the results of a 60-day public comment period, APHIS is likely to formally approve the imports. The comment period will end on September 19, 2016.

If approved, star apples will be the fifth Vietnamese fruit to be exported to the United States, the others being dragon fruit, rambutan, litchi and longan.

BKAV named top Vietnam technology brand

The BKAV has been named the top Vietnamese technology brand for a fourth consecutive year, along with VNPT, VietinBank, SJC.

The annual award was organised by the Vietnam Intellectual Property Association, Intellectual Property Institute, Vietnam Retailers Association and Vietnam Digital Telecommunication Association.

Founded in 1995, BKAV is a leading technology group in network security, software, electronic government, smart home and smart electronic devices.

For network security, BKAV anti-virus software has appeared in over 100 nations around the world.

The group is the first Vietnamese technology group which has been successful in implementing smart home technology.

Geotec Hanoi 2016 breaks personal records

The third edition of the international conference entitled “Geotechnics for sustainable infrastructure development,” Geotec Hanoi 2016, is slated to take place in Hanoi in late November.

Up to now, the most important criterion registered abstracts has seen an impressive growth to reach 187 abstracts submitted for a spot under the limelight at the conference, a 67 per cent jump since the previous conference.

In addition, five keynote lectures pertaining to the conference’s five principle themes and performed by leading experts from four continents have drawn great attention from the scientific community and construction experts.

On June 25, 2016, Geotec Hanoi 2016’s Organising Committee sent the notification of acceptance to all the authors whose abstracts have been approved by the conference’s Scientific Committee.

The theme “Ground improvement for infrastructure projects” drew possibly the most interest, accounting for 37 per cent of all registered abstracts. This year Vietnam took the lead with 43 abstracts, an increase of 53.5 per cent compared to the previous conference.

On the other side, the number of countries and territories interested in the event has also set a new record, with 33 countries and territories participating against the 27 of the previous conference.

In particular, this year’s conference features multiple new faces, such as the US, Spain, Hong Kong, Hungary, New Zealand, Pakistan, Philippines, and Singapore, which indicate growing interest by both internal and external experts, researchers, and scientists into infrastructure construction in general and geotechnical foundations and underground construction in particular.

This once again confirms the prestige of Geotec Hanoi as one of the world’s leading conferences on geotechnics and infrastructure.

Beside abstracts, Geotec Hanoi 2016 has also attracted a great number of exhibitors from domestic and international companies and organisations. As of now, 25 exhibition booths, as well as 3 gold and 1 bronze sponsors have been registered.

According to the Organising Committee, the demand for building tunnels and underground spaces in Vietnam has been constantly increasing. Metro projects are in development, whereas several thousands kilometres of expressway as well as high-speed railway are going to be invested.

Similarly, airport and port systems are also attracting huge investment. Many high-rise buildings are under construction to meet burgeoning urban development requirements. They all require a background of cutting-edge technologies in design, execution, and monitoring.

In this context, Geotec Hanoi 2016 proves an ideal platform for companies, suppliers, consultants, and contractors to introduce their advanced technologies and find opportunities in the Vietnamese market. This opportunity is especially valuable considering the recent successive breakthroughs of the domestic infrastructure construction industry in reaching a new height with greater emphasis on technological innovations and sustainable development.

Farming exports reach US$17.8 billion in seven months

Vietnam’s agro-forestry and fishery exports earned US$2.64 billion in July, bringing total revenues in the first seven months of the year to US$17.8 billion, up 5.1% over the same period last year.

According to the Ministry of Agriculture and Rural Development, rice shipments during the January-July period were estimated at 2.93 million tonnes, earning US$1.32 billion, down 18.4% and 14.4% in volume and value respectively.

China remained the largest buyer of Vietnamese rice at 35% while Indonesia came second with 11.6%.

Vietnam’s rice exports to Ghana and Ivory Coast posted strong rises at 41% and 31.3% respectively, while shipments to the Philippines, Malaysia and Singapore fell between 34.6% and 54.3%.

Pepper export volume in the first seven months of the year rose 26%, but revenues increased by only 9% as export prices declined by an average of 13% compared with the same period last year.

Similarly, as coffee prices fell 15.6% on average, its value rose only 18% in comparison with a 38% increase in export volume.

Cashew was the exception with the rise in value greater than that in export volume. Vietnam earned US$1.46 billion from shipping 189,000 tonnes of the nut in the first seven months of 2016.

During the period, fishery export value was estimated at US$3.65 billion, up 3.3% year on year. Major forestry product exports rose slightly by 0.8% to reach US$3.98 billion.

The US, Japan and China were the largest importers of Vietnam’s seafood and timber products.

Jan-Jun phone exports soar 20.6%

Exports of mobile phones and phone parts in the first half of this year edged up 16% year-on-year to nearly US$17 billion, showed data of the General Department of Customs. The figure accounted for 20.6% of Vietnam’s total export revenue in the period.

Vietnam shipped cell phones and phone parts to many countries and regions in the period, with the European Union (EU) being the biggest importer with nearly US$5.28 billion, rising 6.2% year-on-year and accounting for 31.1% of the total.

The United Arab Emirates (UAE) bought over US$2.22 billion worth of phones and phone parts from Vietnam, up 0.4% year-on-year, followed by the U.S. with nearly US$2.07 billion, up a staggering 60%. South Korea with over US$1.33 billion.

The customs credited the upsurge in outbound sales of phones and phone parts to more phone production facilities with foreign involvement, including those of Samsung, Microsoft and LG, and foreign part suppliers of these complexes.

According to the customs, apparel shipments came second in the January-June period with nearly US$10.85 billion, up 6.4% year-on-year and representing 13.2% of the country’s total exports. Foreign-invested enterprises in the industry contributed 60.7% of the total.

Computers, electronics and components as a group were the third biggest export earner with US$7.88 billion, up 7.1% year-on-year and making up 9.6% of the nation’s total export revenue.

In the year to June, exports hit US$82.13 billion, up 5.7%, and imports reached US$80.43 billion, down 0.8%, resulting in a trade surplus of around US$1.7 billion.

Firms in the FDI sector generated a trade surplus of US$10.25 billion while local companies caused a trade deficit of US$8.55 billion.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR