Da Nang, Quang Nam sell bio-fuel E5 from October

Da Nang City and Quang Nam province will distribute bio-fuel E5-RON 92 from October onwards.

The bio-fuel, which is made up of unleaded gasoline and 5 percent ethanol, will be replaced the traditional Mogas 92 at all filling stations in Da Nang from November 1 and in Quang Nam by the end of this year.

Da Nang is among seven pilot localities to distribute the environmental-friendly fuel in accordance with the Prime Minister’s recent decision.

Earlier from September 1, Quang Ngai province took the lead in the sale of E5-RON 92.

From December 1, 2015 onwards, the fuel will be sold nationwide at all filling stations.

According to the Vietnam Oil and Gas Group (PetroVietnam), the total consumption of E5-RON 92 nationwide between August 2010 and August 2014 reached 105,940 cu.m. In the first eight months of this year, the volume hit 31,000 cu.m, equivalent to the figure of the whole 2013.

Mekong Delta to promote Japanese investment in agriculture

Preparations for a meeting in Japan to promote investment in the Mekong Delta’s agricultural sector were discussed by officials from relevant agencies and regional localities in Can Tho city on September 26.

Nguyen Phong Quang, Deputy Head of the Steering Committee for the Southwestern Region’s standing board, said the upcoming meeting will act as a stepping stone for the city and 12 provinces in the region to optimise their agricultural and fishing potential.

He said the localities need to make a list of feasible projects to call for investment and select well-performing businesses to connect them with Japanese partners.

The region should also focus on training human resources, particularly skilled and professional workers, so that they can work well for Japanese businesses, he added.

The Mekong Delta is Vietnam’s biggest producer of rice, fruit, and aquatic products. It produces more than 90 percent of Vietnamese rice exports, which hold a 20 percent share in the global market.

The region also supplies 70 percent and 60 percent of the country’s respective fruit and aquatic exports, the steering committee said.

The Ministry of Planning and Investment said foreign direct investment, especially from Japan, in agriculture in the Mekong Delta remains modest. The region is home to 91 Japanese projects worth a total of 516 million USD, but only six are poured into agriculture, with a capital of 35.5 million USD.

The regional localities plan to attract Japanese investment to 124 agricultural projects in the near future.

The ministry said it hopes the intensification of efforts to promote Japanese investment will provide rich opportunities for the Mekong Delta to boost its agricultural and aquatic production.

Dak Lak protects Buon Ma Thuot coffee’s international trademark

Germany , Spain and the Benelux countries, comprising Belgium , the Netherlands and Luxembourg , agreed to protect Vietnam ’s “Buon Ma Thuot coffee” trademark, Chairman of the Buon Ma Thuot Coffee Association Duong Thanh Tuong has said.

In his address to the association’s second congress for 2014-2018 held in Buon Me Thuot city, the Central Highlands province of Dak Lak , on September 26, Tuong noted that 12 other countries are considering approving the trademark.

Reviewing the association’s activities in 2010-2013, he said it granted certificates of geographical indication (GI) to 10 coffee processing enterprises and promoted the trademark abroad.

It sought protection of its certification status for Buon Ma Thuot coffee in France , the US , Switzerland , China , Germany , Spain , the UK , Japan , Italy , Singapore , the Republic of Korea and the Benelux region.

In the next four years, the association will continue its bridging role, connecting its members with public-private agencies, proposing coffee development plans and applying for GI status inside and outside the European Union.

Dak Lak now boasts over 202,500ha of coffee plants, the largest coffee growing area in Vietnam , with an annual yield of 412,000 tonnes.

The province’s coffee beans have made their way to 80 countries and territories worldwide.-

Developing community-based tourism is expected to help local residents improve their living standards and promote their cultural values, a senior tourism official said at a ceremony in Hanoi on September 26 on the occasion of World Tourism Day.

“Tourism and Community Development” is the theme of this year’s event, which is observed annually on September 27. This new trend demonstrates that Vietnam ’s tourism sector is in line with the sustainable development goals of the United Nations.

Director of the Vietnam National Administration of Tourism Nguyen Van Tuan said Vietnam valued community efforts in driving the tourism industry. Local residents in major cities such as Hanoi, Ho Chi Minh and Hue have become actively involved in the field, he added.

In the near future, the tourism sector will help locals diversify their tourism services and draw in more visitors.

Mary McKeon, Team Leader of the EU-funded Environmentally and Socially Responsible Tourism Capacity Development (ESRT) programme, said Vietnam was rich in culture thanks to its 54 different ethnic groups.

With this advantage, the country would be able to take the lead in community-based tourism.

World Tourism Day is an occasion for Vietnam to show off its potential in developing community-based tourism in a sustainable manner, she added.

Vietnam welcomed close to 5.5 million international tourists during the first nine months of this year, an increase of 9.9% compared to the same period last year, according to the administration.

In 2013, Vietnam welcomed over 35 million domestic and 7.57 million international tourists, up by 7.7% and 10.6% respectively year-on-year. The tourism sector generated 200 trillion in revenue, an annual rise of 25%.

State Audit evaluates strategic role

The Chairman of Vietnam's Auditor Association, Tran Van Ta, has said that the State Audit office of Vietnam (SAV) should operate as a large-scale independent organisation without any external interference.

Ta was speaking at a workshop on improving the strategic role of the audit office in public finance management with Vietnamese and international auditors on September 25.

The main topic was Values and Benefits of the State Audit Office in Public Finance Management.

The workshop was organised by the United States Agency for International Development (USAID) and the State Audit of Vietnam (SAV).

It was part of USAID's Country Development Cooperation Strategy for Vietnam 20014-2018 which relates to Vietnam's Strategic Plan on the Development of State Audit 2013-2017.

Addressing the gathering, Ta said the audit office should transform its method from compliance audit to performance audit and perform business-based audit to improve work efficiency.

He added that it should develop audit standards to ensure the proper use of State funds by agency leaders, adding that it should operate as a large-scale independent organisation without any external interference.

Director of Regional State Audit Office 12 in Dak Lak, Nguyen Anh Tuan, said that State audit offices had to prove their roles to ensure accountability in using State funds.

A representative from KPMG Vietnam said that the audit office needed assistance from those audited to improve working results.

The Deputy Director of Specialised Audit Department 4 in charge of capital infrastructure investment and projects, Vu Nhat Anh, said State enterprises that had been equitised should be included in the audit subjects to avoid losses in the State budget.

He said it would be better if SAV improved the quality of audit training programmes and the exchange of information among auditors to improve specialist competency.

The Director of Regional State Audit Office 4 in Ho Chi Minh City, Truong Viet Huong, said that the Law of State Audit should be more widely publicised to improve the knowledge of government agencies and businesses.

A representative from the Institute of Economics and Finance under the Ministry of Finance, Vu Dinh Anh said that the actual State fund had always exceeded its estimate by 35 percent.

He said the most important matter was to tighten fiscal and financial expenses in the use of State funds.

He added that society would require information about State funds to be monitored to ensure their integrity and transparency.

The Ministry of Finance representative said that the quality of audit figures must be guaranteed through internal and external monitoring and evaluation.

Australia gives green light for litchi imports

Fresh litchi is all but on its way Downunder as the Australian Government is finalising its approval, according to the Vietnamese Trade Office in Australia.

Australia is one of the countries which impose the most demanding and rigid regulations on quarantine in the world. The country has not yet imported any Vietnamese fresh fruits, but is in the final stages of authorizing the import of litchi.

To boost fresh fruits exports to the demanding market, the Ministry of Agriculture and Rural Development (MARD in coordination with the Ministry of Industry and Trade (MoIT) have worked closely with the Australian Department of Agriculture, Fisheries and Forestry to remove technical barriers for Vietnamese fresh fruits.

Australia regulates before allowing litchi to enter the market, the Vietnamese side must conduct investigation into cultivation zones and packaging units and work with local management agencies on epidemic control at plantation gardens.

Vietnamese litchi is expected to be officially shipped to Australia in 2015.

Bringing litchi to Australia helps diversify the market and creates the opportunity for other fruits like dragon fruits, longan and mango to have easier access to the Australian market in the future.

Vietnam files to lift import ban on seafood

The Vietnam National Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD) has filed a petition to temporarily suspend the order barring the import of Vietnamese fisheries and seafood products into the Brazilian market.

According to the petition, the NAFIQAD had previously received official notification asserting certain specifically identified Vietnamese seafood producers have been suspended from exporting seafood products at the request of the Movement of Small Farmers (MPA).

In the filing, NAFIQAD is asking for a stay in executing the order while it awaits official clarification from the Government of Brazil or the Brazilian Embassy in Vietnam on the order.

The specific Vietnamese seafood producers were given an opportunity to cure the defects outlined by the MPA.  They outlined their proposed solutions to the situation in a document submitted to the NAFIQAD on September 19 2014, which was then forwarded to MPA.

At present, the Brazilian Embassy in Vietnam said the MPA has received the document and is reviewing the matter.

In the interest of fairness and equity, the NAFIQAD requested in its petition a stay should be entered to allow for the Vietnamese seafood producers to continue exporting uninterrupted, and provide the parties additional time to work out an amicable solution.

HDBank awarded Best Local Cash Management Bank

The Housing Development Bank (HDBank) has been awarded ‘The Best Local Cash Management Bank’ by Asiamoney, a prestigious financial magazine in Asia.

This is the third year the bank has received the distinguished banking award. It is also the only representative from Vietnam to achieve this award in all three categories: small, medium and large banking.

The annual awards by Asiamoney magazine, a leading Asia finance magazine and part of the Euromoney group is designed to assess the quality of services of banks and financial institutions in the Asia-Pacific region.

US anti-dumping taxes on VN’s shrimp go against bilateral ties

The US Department of Commerce (DOC)’s imposition of anti-dumping duties on Vietnamese shrimp products is unfair and contradicts the principle of trade liberalisation and the economic and trade ties between the two countries, Foreign Ministry spokesman Le Hai Binh told reporters in Hanoi on September 27.

When asked about Vietnam’s response to the DOC’s decision, he replied that this move is not in line with the Vietnam-US Comprehensive Partnership.

“Vietnamese businesses do not dump shrimp products on the US market and do not damage or threaten damage to the US shrimp industry”, the spokesman affirmed.

He suggested trade between the two countries be considered fairly and objectively in order to ensure the legitimate rights of Vietnamese shrimp farmers, processors and exporters, as well as US consumers, import and distribution businesses.

Vietnam, Laos boost cross-border trade

Minister of Industry and Trade of Vietnam Vu Huy Hoang and his Lao counterpart Khemmani Pholsena on September 26 signed a memorandum of understanding on border trade linkage, aiming for 2 billion USD in two-way trade by 2015.

The document, the ninth of its kind, was inked at the end of the ninth conference on Vietnam-Laos border trade cooperation held in Vietnam ’s northern province of Dien Bien.

Participants in the conference spoke highly of the achievements made since the eighth conference held in 2012 and suggested the two sides continue to work closely to create favourable conditions for boosting trans-border trade in the future.

Last year, bilateral trade reached 1.25 billion USD, up by 27 percent compared to the year before. The figure hit 888 million USD during the first six months of this year, an increase of more than 33 percent. It is expected to reach 1.5 billion USD by the end of 2014, and 2 billion USD by 2015.

The ministers said the two governments needed to devise more incentives and invest in the development of joint border markets.

In addition, concrete measures to strengthen trade ties between the two countries were necessary in order to meet trade targets and contribute to the building of a common border area of peace, friendship, development and long-term stability.

Ministry urged to ratchet up trade fraud fight

Deputy Prime Minister Nguyen Xuan Phuc asked the Ministry of Industry and Trade to step up the combat against smuggling and trade fraud for winning consumers’ trust and making the investment climate healthy.

The Deputy Prime Minister, who is also head of the National Steering Committee on the Prevention and Control of Smuggling, Trade Fraud and Fake Commodities, described the work as an urgent and regular task during his working session with the ministry in Hanoi on September 27.

He required the ministry to strengthen collaboration with the police and customs forces to promptly tackle violators, especially at border areas where the situation is developing complicatedly.

Poor market management is particularly blamed for the entry of low-quality products imported from China , yet counterfeited as Vietnamese brand.

Minister Vu Huy Hoang said more awareness-raising campaigns are needed for manufacturers and consumers alike to prevent fake commodities from entering the country.

In January-August, the ministry handled nearly 64,000 violation cases, up 12.2 percent from a year earlier, and collected fines totalling 187 billion VND (8.7 million USD).

Foreign tourists to Vietnam exceed 6 million

Vietnam welcomed more than 6 million international arrivals during the first nine months of 2014, up by 10.42 percent compared to the same period last year.

Meanwhile, the number of domestic tourists hit 32.4 million during the period, an increase of 7.6 percent, according to the Vietnam National Administration of Tourism (VNAT).

Tourism has generated 179 trillion VND (8.44 billion USD) so far this year, a year-on-year rise of 19.24 percent.

The launch of a brand new hydro-plane service linking Hanoi and Ha Long Bay, a World Natural Heritage site, early this month is said to bring more tourists to the country.

The operator Hai Au Aviation Joint Stock Company has scheduled one to three flights between Hanoi and Ha Long City per day, and five to ten daily sightseeing flights over Ha Long Bay.

The company is planning to open new routes from Ho Chi Minh City in the near future, including to Mui Ne in central Binh Thuan province, NhaTrang in central Khanh Hoa province, Con Dao Island in southern Ba Ria–Vung Tau province and to Phu Quoc in southern Kien Giang province.

During the nine-month period, the capital city of Hanoi received nearly 1.5 tourists in the first three quarters, up 17.1 percent year-on-year, thanks to its opening of the Hang Buom cuisine street in the Old Quarter.

Meanwhile, Ho Chi Minh City, the country’s southern economic hub, earned roughly 19 trillion VND (896 million USD) from hotel and tourism services, up by 8.3 percent year-on-year.

PTI launches online inquiry service for vehicle insurance

The Post and Telecommunication Joint Stock Insurance Corporation (PTI) became the first Vietnamese insurance company to provide an online inquiry service on the progress of motor vehicle insurance.

Customers may access the website on www.sms.pti.com.vn to track down information such as the date of insurance payments and the current status of documents undergoing processing.

Last August, the PTI management board agreed to increase its capital in two companies within this year. The company will raise its capital in Lane Xang Insurance Public Company (LAP) by US$150,000 to $1 million, which is equivalent to half of LAP's charter capital.

PTI will also buy shares of IBS Viet Nam Company Ltd to increase its capital by VND10 billion (more than $476,000) to VND19.8 billion ($942.8 million), which is equivalent to 99 per cent of IBS's charter capital.

Property sector draws $1.2b in FDI

Viet Nam has received US$1.2 billion as foreign direct investment in the property sector in the first nine months of the year.

The capital inflow is expected to rise towards the end of the year.

Figures from the Foreign Investment Agency showed that the real estate sector accounted for 11 per cent of the total registered FDI with 27 projects, followed by the construction sector with $612.1 million.

Hai Duong hopes to build admin centre

The northern Hai Duong Province has sent a proposal to the Prime Minister regarding the construction of a VND2-trillion (US$95.2 million) administrative centre.

Covering an area of 19.2 ha, the centre will have the offices of 19 state management units with the aim of promoting administrative reform and creating a modern work environment by locating all agencies in a place.

The province will spend VND1 trillion from its budget on the project, while the remaining will come from the land transfer of old public offices and other legal capital resources.

Minh Phu Seafood plans $24m bond issue

Minh Phu Seafood Corporation (MPC) plans to issue bonds worth VND500 billion (nearly US$24 million) this month. These three-year bonds are unmortgaged and non-convertible and will be offered to less than 100 investors in a private placement.

Recently, MPB decided to buy back as many as 1.6 million shares to pave the way for its plan of delisting shares on the HCM Stock Exchange. At the current price of VND71,000 ($3.36) per share, it will spend over VND110 billion ($5.2 million) to fund the purchase.

Investor fined for share price manipulation

The State Securities Commission will fine Pham Thi Hieu, an individual investor on the HCM Stock Exchange, VND300 million ($14,218) for manipulating the share price of real estate developer An Duong Thao Dien Company (HAR).

In 2013, Hieu used 17 accounts of other investors at seven securities companies to constantly buy and sell HAR shares, creating a false sense of supply and demand that affected HAR prices, the SSC said.

Hieu's violation started from the first day HAR listed on HCM City's exchange in January 2013. The shares debuted at VND12,000 ($0.57) per share but were traded around VND9,500 ($0.45) a share.

Many State enterprises send in late reports

The Ministry of Finance announced that many State-owned enterprises did not submit their required financial reports before the August 31 deadline.

As of that date, 18 of the 78 State corporations and 126 of the 149 one-member liability companies under the Ministry's management did not submit financial statements. Eight of 18 ministries and ministerial agencies have yet to send financial monitoring reports.

In addition, many corporations and companies did not send reports on their business classification and only the Ministry of Agriculture and Rural Development sent a written explanation.

Thong Nhat Production Co to list

About 68 million shares of Thong Nhat Production and Investment Company (GTN) will be listed on the HCM Stock Exchange on October 3 at the reference price of VND10,500 (US$0.50) per share, the exchange announced.

The company was formed through the merger of several companies operating in the fields of industrial bamboo production, infrastructure, minerals, building materials, plastics and agricultural products.

At the end of June, the company had charter capital of VND680 billion ($32.2 million) and total assets of more than VND1 trillion ($47.8 million). In the first six months of this year, its revenue reached VND202.8 billion ($9.6 million) and after-tax profits hit VND23.8 billion ($1.1 million).

VN becomes attractive oil refinery option

Viet Nam remains an attractive destination for oil refineries, with numerous business benefits and investment incentives advantages, experts said.

Tien phong (the Vanguard) online news reported that Viet Nam's intial oil and gas development strategy by 2020 involved the setting up of three oil refineries: the proposed US$3-billion Dung Quat refinery in Quang Ngai Province, with an annual capacity of 6.5 million tonnes of crude oil; and the proposed $9-billion Nghi Son refinery in Thanh Hoa Province and the proposed $4.5-billion Long Son refinery in Ba Ria-Vung Tau Province, each with an annual capacity of 10 million tonnes.

The State later added to the plan two oil refineries: the $3.18-billion Vung Ro refinery in Phu Yen Province with an annual capacity of eight million tonnes, and the $2-billion Nam Van Phong refinery in Khanh Hoa Province, with an annual capacity of 10 million tonnes.

Now, Binh Dinh Province has proposed the addition of the $22-billion Nhon Hoi refinery, with an annual capacity of 20 million tonnes, to the plan.

Tran Viet Ngai, chairman of the Viet Nam Energy Association, said the Dung Quat refinery was expected to meet 30 per cent of domestic petrol and oil demand, so Viet Nam needed only one more refinery with an annual capacity of 15 to 20 million tonnes to supply enough petrol and oil to the domestic market.

Ngai attributed the increase in oil refinery investments to the country's political stability and security, strategic location for transporting goods to and from Asia-Pacific countries, numerous deep-sea ports, and investment incentives.

He noted that deep-sea ports were quite important in transporting oil products mainly by sea. He added that for oil refinery projects, Viet Nam was granting large tracts of land, site clearance, and preferential incentives for land use fees and taxes on corporate income, imported crude oil and exports.

The refineries usually export their products, including petrol, oil and oil chemical products, said Ngai, adding that investors of refineries would gain profits mainly from chemical by-products such as polymer, asphalt and fibre, and only partly from petrol and oil products.

For instance, Formosa's oil refinery in Taiwan, with an annual capacity of 20 million tonnes of crude oil, has been exporting its polymer all over the world, Ngai noted.

Economic expert Le Dang Doanh said Viet Nam would soon be signing numerous free trade agreements that were advantageous to refineries, such as the TPP, ASEAN+6, ASEAN Economic Community, Viet Nam-EU and Viet Nam-Customs Union agreements.

Refineries in Viet Nam will be able to export their products to other countries and territories at reduced or zero tariffs after the signing of these agreements, Doanh noted, and added that a large and cheap work force was also an advantage for the refineries.

Ngai said the refineries would provide jobs to local residents, especially skilled workers, as well as provide high-technology resources and a bigger budget for the nation.

Refineries will also create competition in the domestic market for products such as petrol, oil, asphalt, polymer and fibre, and reduce the import volume and selling price of these products.

However, Doanh said, the refineries were using old and pollutive technologies that could harm the environment, and these should be regulated.

September sees fall in confidence index

The ANZ-Roy Morgan Viet Nam Consumer Confidence Index has fallen slightly to 135.0 in September, down 0.5 point over the previous month.

ANZ Bank economists announced this in a report on Wednesday, adding that the index still remains clearly above the 2014 average of 132.0.

This month's fall in consumer confidence was primarily driven by an increasing number of respondents saying that now is a "bad time to buy" major household items, the economists said.

About 40 per cent (unchanged) of the Vietnamese people said that now is a "good time to buy" the items, but 21 per cent (up five percentage points) said now is a "bad time to buy."

"As we noted for the past few months, the consumer confidence was in the process of finding a new equilibrium level more aligned with steadily improving economic fundamentals rather than the dramatic improvement from geopolitical lows," said Glenn Maguire, chief economist of ANZ in South Asia, ASEAN and the Pacific.

Considering the domestic economy, 54 per cent (up 3 percentage points) of the people expect the country will have "good times" financially during the next 12 months, and 14 per cent (down one percentage point) expect "bad times."

Glenn said that with inflation continuing to soften, price-savvy consumers may be anticipating cheaper prices in the future.

"Such an outcome will ultimately be positive for consumption in the Vietnamese economy when this deferred spending is realised," he added.

Remittances could total $5b in HCM City

Remittances by overseas Vietnamese through banks and other official channels to HCM City could reach US$5 billion this year, an increase of $1 billion from last year, according to the State Bank of Viet Nam.

The estimation is based on the remittances received so far, which, as of early September had topped $2.7 billion, a year-on-year increase of 6.2 per cent.

They were sent from America, Europe, and Asian countries such as South Korea, China, Japan, and ASEAN member nations.

Central bank deputy director Nguyen Hoang Minh said remittances from Asian countries have risen sharply in the past few years.

This year remittances from Asia have accounted for 5.2 per cent of the total figure, 3 percentage points higher than a year ago.

Minh said 74.2 per cent of the remittances has been channelled into manufacturing, 21.8 per cent into housing, with the remaining 4 per cent going towards supporting remitters' families in Viet Nam.

In addition to buying houses for living, the money has also been used to invest in property.

The director of a remittance company in HCM City was quoted by Sai Gon Giai Phong (Liberated Sai Gon) newspaper as saying that remittances surge 30-50 per cent in the last few months of the year just before Lunar New Year.

That is the reason why remittance companies have recently launched promotion campaigns to attract the money, he added.

Vinpearl to launch new island resort

Vinpearl Joint Stock Company (Vinpearl) will launch the five-star Vinpearl Resort&Villas 1 in Hon Tre Island, Nha Trang, the coastal province of Khanh Hoa, in April 2015.

Vinpearl Resort&Villas 1 is the company's new luxury resort, following the two previous successful projects on the island, namely Vinpearl Resort and Vinpearl Luxury.

The resort, now under construction, will include a "two in one" complex combining 500 five-star hotel rooms with 160 luxurious villas.

Vinpearl Resort&Villas 1 offers chances for its guests to enjoy nature's beauty in one of the world's 30 most beautiful bays. It also opens opportunities for property investments and is expected to be launched after seven months of construction.-

Industrial production up 6.7%

Viet Nam's index of industrial production (IIP) experienced a year-on-year increase of 6.7 per cent from January to September 2014, the highest growth rate since the beginning of this year.

The General Statistics Office (GSO) also reported that during the nine-month period, the processing and manufacturing sector, which accounted for 70 per cent of total industrial output, achieved an encouraging 8.3-per cent growth.

Industrial products recording the highest growth included handsets with 72.3 per cent; electronics, computers and optical equipment with 35.9 per cent; leather products and footwear with 31.3 per cent; and electrical output with 13.1 per cent.

Products with lower growth rates include crude oil and steel at only 3.2 per cent each; chemicals at three per cent; and pharmaceuticals at 0.9 per cent. Products with declining rates include sugar, which fell by 25.6 per cent; and powdered milk, by 23.3 per cent.

In spite of the nine-month growth, the nation's IIP remained equal to one-third of the growth seen a few years ago, GSO experts said. They attributed this to low consumption and a high inventory index, which stood at 11.6 per cent.

The industry and trade sector in 28 northern cities and provinces will strive to achieve an IIP of VND2.17 quadrillion (more than US$102 billion) this year. Achievement of this target will lead to a 22.5-per cent year-on-year increase.

The cities and provinces, including Lao Cai, Ha Giang, Lang Son and Bac Giang, as well as Thai Binh, Ha Noi and Hai Phong, crafted 12 specific solutions to meet the target, including accelerating the construction of infrastructure projects and industrial zones; enhancing the application of information and technology in resolving administrative procedures; and strengthening the association among provinces.

Agriculture needs investment

New policies that would attract investment in the hi-tech agriculture sector would create a breakthrough in production and consumption of farm produce, the HCM City Department of Agriculture and Rural Development has recommended.

Although the city has paid attention to enhancing advanced technology in agricultural production in the past, the value of agricultural production has grown at a modest rate of about 5 per cent per year.

The average revenue per hectare under agricultural production in the city is about VND280 million (US$13,213) per year.

If maintaining such a growth rate, the sector would reach the production value of VND800 million ($37,753) per hectare by 2020 as set in the master plan for agricultural restructuring, the department said.

Le Minh Dung, deputy director of the department, said the city was calling for enterprises to invest in the hi-tech agricultural sector and develop models for incubating businesses to reach the target.

Besides better policies, the city needed to focus more on solving financial difficulties faced by enterprises, he said.

Many firms were not interested in investing in the hi-tech agricultural sector, saying that it requires a large amount of capital, but has low economic efficiency.

Credit institutions were not interested in providing loans to enterprises because of the low profits.

Le Thanh Nguyen, director of Sai Gon Hi-tech Park Incubation Centre, said the centre had worked with many investment funds, but they were only interested in real estate and information and technology sectors.

The agricultural sector had low capital turnover and high risks, he added.

The Government had no investment fund designed to support a business incubation programme, while in other countries in the region such as Malaysia and Singapore, the Government set aside large investment funds for this kind of activity.

The hi-tech agricultural sector would expand more rapidly if the existing barriers were removed, he said.

FDI growth expected to continue

Foreign direct investment has significantly increased in recent years and will continue in the years ahead, especially as more State-owned enterprises are equitised, according to analysts.

Although Viet Nam has not had rapid growth in recent years, the country is still considered a good place for foreign investors because of its expected medium- and long-term economic growth.

For the first half of the year, the footwear industry, for example, received many major orders from global companies like Nike and Adidas, both of which plan to open factories in Viet Nam.

In addition, Samsung, Intel and Nokia have continued to invest billions of US dollars in expanding production in Viet Nam.

In July, the Samsung Display US$1 billion-project to produce high-definition screens in Yen Phong Industrial Park, in the northern province of Bac Ninh, received a license to operate.

Intel also announced a new product, the CPU Haswell chipset, of which 80 per cent will be produced in Viet Nam.

Indirect investment has also gone up, especially for mergers and acquisitions (M&A). The total value for M&A has risen five times, from $1 billion in 2008 to $5 billion in 2013.

Economic experts believe that within the next five years, there will be $20 billion worth of M&A deals.

According to the Ministry of Planning and Investment's statistics, FDI accounts for 25 per cent of total investment capital, contributing 19 per cent of GDP, 67 per cent of export revenue, and over 14 per cent of revenue of the State budget.

For indirect investment, 17,000 banking accounts of foreign investors have opened in Viet Nam. Many global investment funds have invested in the Viet Nam Stock Exchange and become strategic shareholders for local enterprises.

"The Vietnamese capital market environment has significantly improved thanks to re-stabilisation of the macro-economy," Andy Ho, VinaCapital's general director and head of Investment, was quoted as saying in the Sai Gon Giai Phong (Liberated Sai Gon) newspaper.

Viet Nam would continue to attract FDI, he said, because foreign-invested firms contributed 60 per cent of total export revenue and foreign investors were now allowed to increase their capital from 49 to 60 per cent in listed companies.

The Trans-Pacific Partnership and Free Trade Agreement with the EU will also help FDI, as well as continued equitisation.

Hindrances to development include existing capital barriers, the weak operation of big State-owned corporations; a shortage of quality human resources; increasing salaries for workers; high volume of bad debts in the banking system; and limited capital of enterprises.

Increasing enterprises' governance ability and improving transparency would be necessary for further growth, he said.

Talks aim to keep Govt policies up with the times

With the theme, "New Games, New Moves", a conference of foreign and Vietnamese experts discussed strategies and solutions the country would need after the ASEAN Economic Community, the Tran-Pacific Partnership agreement and Viet Nam – EU FTA become official next year.

The new trade agreements and policies were expected to create a more liberatised and competitive market, speakers said at the third Viet Nam CEO Forum held in HCM City on Wednesday.

The AEC, for example, will also enhance Viet Nam's presence in the global production and value chain, and allow them to enjoy more benefits from regional trade and investment.

Herb Cochran, executive director of the American Chamber of Commerce, said that Vietnamese exports and GDP were expected to increase by 28 per cent and 36 per cent, respectively, compared to the pre-TPP period.

In the past seven years, Vietnamese exports to the US accounted for 20 per cent of total exports from ASEAN countries. The figure is expected to increase more than 30 per cent.

Vo Tri Thanh, deputy director of the Central Institute for Economic Management, said that "a new game requires new plays, new moves". Every country will develop its own policies to win this new game.

"Viet Nam has a great deal of potential and ambitions, but it also has limitations as well. What Viet Nam needs is a firm political will and strong leadership," he said.

The Government needs to have a new vision with reform policies on resource allocation, banking system, land and human resources to ensure a transparent, open business climate with fewer administrative procedures at a lower cost.

Viet Nam's policies should be consistent with commitments in their agreements and international laws, he added.

The forum attracted 1,000 domestic and foreign CEOs, business leaders and economists. During the conference, experts said that participation in the AEC and TPP would bring great benefits to the bloc's member countries, including faster economic growth, better job generation and additional foreign direct investment (FDI) inflows.

Another important factor would be investments in the IT industry, which will play a key role when it connects with the trading and production sectors.

IT investment is needed for better infrastructure and enhanced international integration.

Speaking at the conference, economist Pham Chi Lan said that small- and medium-sized enterprises in Viet Nam accounted for 98 per cent of total enterprises. To play in the game, with its new challenges, businesses should change their attitude and mindset. It requires them to promote creativity, reform and a start-up business spirit.

For the Government, she suggested that trade facilitation would also make Viet Nam become more confident to enter the new game.

Jonathan Hanh Nguyen, chairman of Imex Pan-Pacific Group, said: "Businesses need support from the Government. If they don't have it, they will swim in a big sea and sink."

He said the future success of businesses were dependent on the government's policies.

If businesses lack capital and do not have access to loans at preferential interest rates, they will have difficulties thriving in the new climate.

In addition, domestic businesses should build trademarks and develop marketing campaigns.

Truong Gia Binh, chairman of the FPT Corporation, said businesses should actively learn from their counterparts in other countries and adopt advanced technologies.

The Viet Nam CEO Forum was initiated by the HCM City Youth Business Association and co-organised by the Leading Business Club, the Saigon Entrepreneurs Club, the 2030 Businessmen Club and the Business Association of Viet Nam High-Quality Goods.

Stockmarket becomes contrary

The Vietnamese stock market is witnessing contrary movements, with individual investors buying in hopes of brighter prospects and major shareholders selling after making huge profits.

The market began to decline nearly two weeks after a long rally, but a good number of investors are still pouring money into it in the belief that it will rise again in the medium and long term, as shown in the high trading volume at each session. This strong demand during the bear sessions helped to cushion the market.

On the other end of the spectrum, a good number of major and internal shareholders are unloading shares. They opted to exit the market when it peaked and earned billions of Vietnamese dong in profits.

The market is fluctuating along a narrow range now because of a lack of support from big investors. In recent sessions, a large quantity of oil and gas-related shares and hot stocks rode the previous rise in market momentum and were sold. However, demand for these shares is also high, with tens of millions of shares bought every session.

Viet Nam Public Bank (PVComBank) has registered to sell shares of four oil and gas companies, including PetroVietnam Drilling and Wells Service Corporation (PVD), PetroVietnam Technical Services Corporation (PVS), PV2 Investment Co (PV2) and Petroleum Real Estate Co (PVL). The total value of these sales could reach VND1.4 trillion (US$66.4 million).

Many oil and gas stocks have risen by 80 per cent in value in the past, and analysts said PVComBank chose the best time to sell these shares.

Meanwhile, the leaders of Petroleum Equipment Assembly and Metal Structure Co (PXS) and their relatives sold thousands to several tens of thousands of the company's shares.

In addition, companies were seen unloading stakes in subsidiaries and affiliates. This month, Viet Nam Posts and Telecommunications Group (VNPT) announced it would sell all of its 40.6 million shares in Sacom Investment and Development Corporation (SAM), equivalent to 31.04 per cent of SAM's total capital.

Ha Noi issues $143m in bonds to fund traffic infrastructure

The capital city will issue bonds worth VND3 trillion (US$142.86 million) later this month to raise funds for its traffic infrastructure development from 2014 to 2015.

Dao Thai Phuc, director of the State Treasury's Ha Noi unit, announced this on Wednesday, saying the bonds would be auctioned on the Ha Noi Stock Exchange and underwritten by securities companies, commercial banks and other authorised financial institutions.

The bonds will have a fixed interest rate during the period. The money to be raised will be used to fund some of the city's key traffic projects, including belt roads No1 and No2 and the extension of Highway 5, all to be completed by the end of next year.

Phuc said his agency would closely control financing to guarantee efficiency and punctuality in the projects' implementation.

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