Vietnamese firms lack understanding of AEC commitments: survey

Vietnamese businesses are aware of the regional ASEAN Economic Community (AEC) single-market initiative, but few understand its commitments, according to a survey.

While a survey conducted in April by the Vietnam Chamber of Commerce and Industry (VCCI) showed that 94% of local firms are mindful of the AEC initiative, only 17% of the respondents fully grasped its commitments.

The statistics were cited by Nguyen Thi Thu Trang, director of VCCI’s WTO Center, at a seminar on ‘Vietnam and the ASEAN Economic Community’ held in Hanoi on December 28.

The European Union-style AEC, established on December 31, 2015, is one of ASEAN’s three pillars to create a single market and production base, a highly competitive economic community, a region of equitable economic development, and full integration into the global economy.

ASEAN, or the Association of Southeast Asian Nations, is a ten-member bloc which includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar, and Vietnam.

“The number of Vietnamese firms capitalizing on the AEC is even lower,” Trang stressed, explaining that the lack of accurate and comprehensive knowledge of AEC is amongst the biggest obstacles for local businesses to make use of the commitments.

As of November, 11 months after the establishment of AEC, only two Vietnamese firms had been granted certificates of origin for their products, Trang said.

Many more have had their exports rejected by destination countries within ASEAN due to a lack of quality standards.

In 2016, Vietnam’s exports to ASEAN countries suffered a 5.6% drop compared to 2015, while the country’s imports from its regional neighbors also fell by 2%.

According to Hoang Van Phuong, head of the ASEAN Division under the trade ministry’s Multilateral Trade Policy Department, a major challenge for Vietnam in the AEC is harsh competition from regional products, many of which share multiple similar characteristics with those made locally.

Can Tho targets 1.67 billion USD in 2017 exports

The Mekong Delta city of Can Tho has set the goal to earn 1.67 billion USD from exports in 2017, a rise of 7.5 percent over 2016.

To this end, the municipal People’s Committee has designed a number of measures, including increasing trade promotion at home and abroad, and tapping all opportunities to develop export markets.

Meanwhile, the locality will increase the application of new technologies in production, while creating favourable conditions for the export of new products with high value, including footwear, garment and  textile, and handicrafts.

At the same time, Can Tho will also step up administrative reform to attract more investment. This is considered one of the breakthroughs of the city in 2017, aiming to increase production and export value, contributing to boosting local economic growth.

The city will hold regular meetings with exporters to remove the difficulties facing them in terms of mechanisms, capital, market and technology, thus enhancing export value and volume.

In 2016, Can Tho earned over 1.55 billion USD from export, up 5.7 percent over the previous year, but fulfilling only 94.1 percent of its yearly target.

The major reason of the below-expectation export is the difficulties in markets of agricultural products, as the main export products of the city are rice and frozen aquatic products. While rice faces fierce  

competition from regional countries, aquatic products countered strict technical barriers and high duty rate.

VRG plants 90,000 hectares of rubber in Cambodia so far

The Vietnam Rubber Group (VRG) has planted more than 90,000 hectares of rubber trees in Cambodia in the past 10 years, 1,900 hectares of which have been producing latex.

VRG projects have created jobs for 15,000 local labourers, while contributing to fostering the sound traditional friendship between Vietnam and Cambodia, heard a VRG conference in Phnom Penh on  

December 28 to review its 10-year operation in Cambodia.

According to the group, so far, it has built over 3,000 workers’ apartments and various infrastructure works for localities in Cambodia where its projects are located. The VRG has also donated more than 3  

million USD to local governments and Red Cross organisations of Cambodia.

According to a VRG representative, the group has completed the stage of planting new trees and will begin large-scale exploitation period soon. VRG’s branches plan to recruit a large number of labourers  

for harvesting and latex processing, while focusing on better management of rubber latex quality.

The representative underscored good prospects for rubber projects in Cambodia in the future, as the Cambodian Government encourage rubber farming as a spearhead economic industry, while world  

rubber price is on the rise with a 60 percent increase recorded between early and late 2016.

Rubber demand in many countries has also increased, while the La Nina and El Nino in many regions in the world have led to a short-term reduction in natural rubber production, which pushes up rubber  

price.

Viettel gives users free sim before 4G launch     

Viettel Telecom will provide free 4G SIM cards to its users ahead of the launch of its 4G network in the first quarter of 2017.

From January 1 to March 1, customers can visit Viettel’s shops, supermarkets and postal offices nationwide to swap their current SIMs for 4G SIMs.

Viettel said its infrastructure is in place for the launch of 4G services, which will allow its users to watch HD videos, do video streaming and download and upload quickly. The 4G service will be compatible with all types of mobile phones in the market.

In Ha Noi and HCM City and other key cities, customers will be able to enjoy the 4G service as soon as Viettel completes installing its base transceiver stations.

“We invested in equipment and started installing infrastructure to widen the 4G coverage area as soon as we got the licence. Viettel expects a mobile internet boom in Viet Nam and 4G to become hugely popular,” said Hoang Son, Viettel Telecom’s general director.

Viettel is the only network provider in Viet Nam that has successfully launched 4G across different markets in the world, such as in Burundi, Laos, Haiti and Peru. 

Exports to Cambodia dip more than 10%

Vietnam exports to Cambodia dropped 10.63% to US$1.9 billion for 11 months leading up to December 2016, according to Vietnam Customs.

In the reviewed period, Vietnam companies shipped 28 groups of products to Cambodia. Key export products included steel with an export value of US$271.9 million (down 24.98%), followed by petroleum (down 25.23% to US$256 million and garment (up 18.59% to US$221.3 million).

Most export products to Cambodia witnessed a decline. Fertilizer saw the deepest fall of 93.12% to US$76.4 million.

Only a few products obtained a robust export growth like telephones and components (up 1618.23% to US$2.6 million) and wood and timber products (up 371.12% to US$10.8 million).

Seafood sector tops the list of prestigious Vietnam exporters

The Ministry of Industry and Trade has released a list of 310 prestigious exporters in 22 sectors for 2015 in which seafood tops the list with 45 chosen enterprises. The garment sector came second with 38 enterprises.

The selection was based on opinions of relevant agencies and the ministry’s criteria such as export turnover, prestige among foreign partners, and compliance with tax and customs rules.

According to the Ministry, the prestigious exporters will be supported to promote their products free of charge on the ministry’s website and some publications.

The ministry will help these enterprises join the national trade promotion program, free training courses on e-commerce, and meet foreign partners.

VAA wants to stop going public

The Vietnam Aviation Academy (VAA) has asked the Ministry of Transport for permission to terminate its equitization plan that started over two years ago, and operate as a financially independent entity, instead.

In a written request sent to the ministry, VAA proposed putting its equitization plan on hold even though it is underway, and submitting a self-financing scheme to the ministry soon.

Following the equitization of Central Transport Hospital in late 2015, the ministry requested hospitals and schools under its umbrella to go public.

VAA’s equitization began two years ago, and now has reached the last stage. The academy was valued at VND241.3 billion in June this year, with the State stake totaling VND220 billion.

VAA, which was upgraded from the Vietnam Aviation School 10 years ago, is the only institution to provide undergraduate and graduate aviation programs. The Civil Aviation Authority of Vietnam has allowed it to issue aviation personnel certificates.

Earlier, Nam Thang Long Hospital in Hanoi, Vinh City-based Transport Hospital and Danang-based Transport Hospital asked the Government for permission to terminate their equitization, and operate as financially independent concerns.

VNPT enjoys over 20 percent profit growth rate for third consecutive year

Vietnam Posts and Telecommunications Group (VNPT) yielded the total profit of VND4,380 billion (US$192 million) in 2016, up 20.3 percent over the previous year. It is the third year in a row the group gained the growth rate of over 20 percent. 

According to reports by the group at a conference to implement next year plan, 2016 revenue hit VND133,233 billion ($5.85 billion), up 7 percent over the last year.

The group contributed VND3,600 billion ($158 million) to the state budget, up 1.4 percent over 2015.

Telephone subscribers reached 38.6 million by the end of 2016 while broadband internet subscribers hit 3.8 million.

The group has set a target to become the pioneer in implementing new telecom technologies and services and the best mobile network operator in both service and quality.

Attending the conference, Minister of Information and Communications Truong Minh Tuan said that 2016 marked the vigorous change of VNPT after a year of restructuring and reform.

The group has affirmed its position of one out of three telecom and IT giants in Vietnam.

Banks ensure sufficient cash for yearend surging demand

The State Bank of Vietnam (SBV) has in writing instructed credit institutions to ensure sufficient cash supply to meet increasing demand ahead of the Tet holiday, said deputy director of SBV branch in HCMC Nguyen Hoang Minh

Reporting to the Economics-Budget Committee of the city People’s Council yesterday morning, Mr. Minh said that banks had been required to increase the supply of banknotes of low nominal values for citizens' Tet spending.

They should prevent ATMs from stopping service because of cash shortage. Any machine problem occurring due to suddenly high cash withdrawal at the same time must be handled within 24 hours unless banks will be held responsible according to regulations.

SBV HCMC has pledged enough cash supply in both volume and nominal values for citizens and businesses during the Tet holiday.

In addition, the branch has asked banks in the city to supplement ATMs posts at export processing zones and industrial parks to reduce pressure for the existing ATMs in the peak season. They should send staff to businesses to directly pay workers in days near the Tet festival.

According to SBV (branch) in HCMC, it has been able to meet the already high cash demand in December 2016 with the total volume estimated to increase 42.2 percent over November and 3.7 percent over the same period last year.

$1.5 billion horse racecourse galloping towards victory

Even though the decree on sports betting has continued to be delayed, South Korean firm G.O. Max I&D still shows its determination in developing the horse racecourse in the northern province of Vinh Phuc by signing a Memorandum of Understanding with the provincial leadership.

The signing ceremony was organised on December 27 with the participation of representatives of G.O. Max I&D and the Vinh Phuc People’s Committee.

In 2005, G.O. Max proposed the project to Vinh Phuc authorities with the total investment capital of $570 million, but due to a lacking legal framework for betting in Vietnam it fell through. It was assumed that G.O. Max would give up, however, recent information suggests that the government is considering the decree again so G.O. Max is back.

On their return, the company will expand the scale of the project by increasing the investment capital to $1.5 billion.

The horse racing course will have an area of 200 hectares and will hold three races per week. In addition, G.O. Max will build 70 betting points outside the course in 54 cities and provinces nationwide, as well as an online betting system and horse rearing and training areas.

Along with the horse racing course, the project is going to include a 72-hole golf course, a sports and entertainment area, a horse riding and polo club, residences, and villas, with a total area of 750 hectares.

85 per cent of the capital will be mobilised from partners and financial investors. The project is set to begin operation 36 months after the start of construction. It expects a revenue of $972 million per year in the first five years and plans to contribute $100 million per year to the state budget.

G.O. Max is the biggest horse racecourse ever proposed in Vietnam-larger than the one planned for Hanoi by the joint venture between South Korean Global Consultant Network and Hanoi Tourist, with the total investment capital of $500 million.

Fabric-maker Taiwan Paiho to build $50-million plant in Vietnam

Taiwan Paiho will invest $50 million into a plant in Vietnam to produce jacquard fabrics for shoes, according to news site taipeitimes.com.

The plant is scheduled to start operation in the fourth quarter of next year. Taiwan Paiho Ltd. manufactures shoelaces and elastic tape.

The Vietnamese plant would be operated by subsidiary Paiho Shih Holdings Corp. and the plant would produce mainly jacquard warp-knitted fabrics for global customers, the firm said.

Earlier this month, Paiho Shih signed $60 million of syndicated loans with KGI Bank and 13 other lenders for its investments and related business in Vietnam.

Taipeitimes quoted Paiho Shih chairman Cheng Kuo-yen as saying at an investors’ conference on Thursday last week that the company decided to build the new plants in Vietnam instead of another Southeast Asian country after analysing transportation costs and tariffs.

One of Taiwan Paiho’s major customers, Taiwanese footwear manufacturer Pou Chen Corp., also has factories in Vietnam.

Taiwan Paiho said it will install 42 machines at the Vietnamese plant next year and expects to increase that to a total of 350 machines within five years, but did not disclose a capacity target.

In the year to December 15, as recorded by the General Department of Vietnam Customs, Vietnam exported $12.3 billion worth of shoes and $2.99 billion worth of bags and umbrellas. On-year growth was 8 per cent, lower than the earlier expected 10 per cent.

The Vietnam Leather, Footwear and Handbag Association  attributed the less-than-desirable result to political instabilities, especially Britain’s exit from the European Union, which caused demand in Europe to decrease, resulting in falling orders from importers.

Programme for clean agriculture launched in City

The Ministry of Agricultural and Rural Development launched a programme dubbed “Green Connection towards A Clean Agriculture” in HCM City yesterday to strengthen the linkages between various players in the agricultural production chain.

It is also aimed at strengthening co-operatives and farmers’ ties with businesses, considered an important measure to improve the competitiveness of and add value to Vietnamese farm produce, enabling them to enter the international market, according to Lê Đức Thịnh, deputy director of the ministry’s Rural Development and 

Economic Co-operative Department.

Amid the increasing international integration, Việt Nam’s agricultural production needs to focus more on quality, meeting international standards, on-time delivery and competitive prices.

The food safety situation in the domestic market has become worrying, with many products failing to meet hygiene and safety standards still being sold in the market.

Deputy Minister of Agricultural and Rural Development Trần Thanh Nam said, “Through the programme, we want to build a connecting chain for safe products, from production to consumption, produced based on VietGap, or GlobalGap or even organic standards.”

Consumers should know where safe products meeting quality standards are produced and sold, he said.

The programme also aimed to create confidence in foreign importers by showing them that Việt Nam has co-operatives and businesses producing products not only meeting Vietnamese standards but also the regulations of importing countries, he said.

The programme, together with others, also aimed to raise awareness among producers about the need for following good agricultural practices to provide safe products to the market, he said.

As part of the programme a fair titled “Green Address, Clean Products Of Agricultural Co-Operatives” is being held at the Co.opmart Foodcosa supermarket in HCM City’s Gò Vấp District on December 27 and 28.

The fair has attracted 35 co-operatives who have set up 40 booths displaying a wide range of agricultural, forestry and seafood products meeting VietGap standards or with quality certification.

They expect the fair to promote their products and enable them to enter into tie-ups.

Speaking at a seminar on the real situation and measures to develop production and consumption of safe farm produce held yesterday in the city as part of the programme, Thịnh said 1-5 per cent of products obtained quality certifications from local and foreign organisations.

Farmers should join hands through co-operatives or co-operative groups to meet the quality standards required by the market, he said.

The co-operation would also help expand production and prevent traders from deflating prices, he said.

The representatives of many co-operatives, including the Xuân Định Fruits Co-operative in Đồng Nai, Giồng Trôm Green Skin Co-operative, and Lộc Khê Safe Vegetables Co-operative, told the seminar that they faced difficulties in finding outlets for their safe products and expected to find distributors through the programme.

Saigon Co.op, Việt Nam Farms and Agricultural Enterprises Association, the crop production and rural development and 

economic co-operative departments and others signed up for the programme.

Start-ups need an ecosystem

Developing a fertile ground for agriculture start-ups will be crucial for the sector’s much-needed transformation, experts said at an online forum yesterday.

Vũ Tiến Lộc, Chairman of the Việt Nam Chamber of Commerce and Industry (VCCI) which co-organised the forum with Diễn đàn Doanh Nghiệp (Business Forum), said Việt Nam had special advantages in agriculture and start-up entrepreneurship would promote the sector’s development, especially when restructuring it had become a priority.

He said there was increasing interest in investing in agriculture, and believed start-ups would take the lead, provided an “ecosystem’ was developed to make it happen.

The ecosystem should enable start-ups to access markets, supply human resource of high quality and have a financial structure to provide capital for start-ups, venture capital or angel investment, Lộc said.

The Government is paying special attention to promoting start-ups, seeing them as a driver for economic restructuring, especially in the agriculture sector, said Phạm Quang Hiển, Director of the Ministry of Agriculture and Rural Development’s Enterprise Management Department.

Hiển said the proportion of firms operating in agriculture and rural development remained modest, at around one per cent of the total. Agricultural production was also happening mainly on a small and scattered scale, he added.

He said that it was important to formulate detailed policies to attract private and foreign investments in agriculture and improve the business climate following the Government’s Resolution 19/NQ-CP.

Feasible agriculture production and land use plans were needed, Hiển said.

Nguyễn Chí Ngọc, Deputy Chairman of the Việt Nam Association of Agriculture and Rural Development, said the Government played an important role in encouraging investments in agriculture – a sector with a lot of risk and slow capital recovery.

Application of modern technology would be key to the success of firms in this sector, Ngọc added.

Vũ Ngọc Huyên from the Việt Nam National University of Agriculture proposed a start-up consultancy service for the sector.

According to Phạm Hồng Quất, Director of the National Agency for Technology Entrepreneurship and Commercialisation Development, promoting co-ordination between the Government, universities, scientist and firms is of significant importance in encouraging start-ups.

The Ministry of Science and Technology is preparing a project to establish a start-up ecosystem in Việt Nam by 2025.

Sacomreal to issue bonds worth VND400 billion     

The Sai Gon-Thuong Tin Real Estate Joint Stock Company (Sacomreal) will issue bonds worth VND400 billion (US$17.8 million) to expand operations.

The bonds will be issued in the first quarter of 2017 at a face value of VND1 billion.

It has a 42-month maturity period, and returns will be paid every three months. The yield in the first year will be fixed at 10.5 per cent per year.

The returns for the remaining months will be calculated based on the average 12-month deposit rates of four banks: TPBank, VIB, Vietcombank and Vietinbank, plus a margin of less than 3.5 per cent.

The source for payments will come from the sale of 95 villas and townhouses of Jamona Golden Silk and Sacomreal’s other businesses.

Republic Plaza launched in HCM City     

Thuy Duong Duc Binh Trading JSC on Tuesday launched the Republic Plaza, which is expected to provide a luxurious live-work-play environment and the best investment opportunity in HCM City.

Located on Cong Hoa Street, Tan Binh District, Republic Plaza is one of the most luxurious and largest mixed-use development projects under construction near the Tan Son Nhat International Airport.

The project features two towers being developed under the Officetel & Suites concept. Tower A will comprise 350 rooms built according to the five-star standard and managed by InterContinental Hotels Group (IHG) - the world’s leading hotel management company - while Tower B will include 266 Officetel & Suite units with floor area from 47sq.m to 104sq.m.

Michael Hoe-Knudsen, regional general manager of IHG, said Republic Plaza will be the first Holiday Inn & Suites in Viet Nam catering both to transient guests passing through the airport, corporate customers visiting offices and factory clusters nearby when it opens in 2018.

The launch ceremony also saw an agreement inked between Vietjet and Thuy Duong Duc Binh Trading JSC, which will allow Viet Nam’s largest private carrier to move its headquarters to Republic Plaza in 2018.

“Republic Plaza has prime location near Tan Son Nhat airport, a luxurious design and is integrated with various facilities, especially the five-star hotel units, managed in line with international standards, and the unique Officetel & Suites,” Nguyen Thi Thuy Binh, deputy vice president of Vietjet, said.

“The complex meets all the criteria of a comfortable, dynamic working space as well as quality accommodation and recreation for staff that Vietjet is looking for,” she said.

Also at the launch, HDBank and Thuy Duong Duc Binh Trading JSC signed a co-operation agreement to provide loans for buyers at preferential interest rates. 

USD/VND reference exchange rate hits record high     

The State Bank of Viet Nam (SBV) on Wednesday raised the reference USD/VND exchange rate by 4 đồng, taking it to a record high of VND22,156 per US dollar.

This is the highest rate since the launch of the new fixing mechanism in January, wherein the central bank announces a central reference rate for the đồng/dollar every day based on an eight-currency basket and macro conditions.

Commercial banks are allowed to trade the dollar at +/-3% on either side of the reference rate, which is between VND21,491 and VND22,821 on Wednesday.

On Wednesday morning, the US dollar listed at commercial banks also inched up against the dong.

Vietinbank has increased the rate by 5 dong against Tuesday, listing the rate at VND22,730 and VND22,800 for selling and buying, respectively.

Strengthening the dollar by 5 dong, the ACB quoted its rates at VND22,735/22,805.

Techcombank sold the dollar at VND22,710/22,800, a rise of 10 dong for both buying and selling against the previous day.

In the global market, the dollar inched up against the yen on Wednesday after an upbeat US economic data reinforced expectations of economic growth under the Trump administration and likely rate hikes by the US Federal Reserve next year. The dollar rose 0.2 per cent against the yen to 117.67, adding to its gains of nearly 0.5 per cent on Tuesday in the wake of data showing that US consumer confidence has hit a 15-year peak in December. 

Vinh foods products to be sold in Spain supermarket

Vinh Foods products, a brand of catfish processor Vinh Hoan Corporation, have been put on the shelves of Mercadona, the largest supermarket chain in Spain, from December.

Vinh Hoan Corporation is expected to earn revenue equal to 10 million euros (US$10.5 million) from supplying tra fish to Mercadona in 2017 and 16-19 million euros in 2018-19.

The company started negotiations with Mercadona in 2015 and the first batch was shipped this September.

Mercadona owns a chain of 1,598 supermarkets, accounting for nearly 60 per cent of the tra fish retail market in Spain, until October.

Vinh Hoan Corporation is the largest tra fish exporter in Viet Nam. Statistics showed that in the first 10 months of this year, the company earned revenue of more than $202 million, a rise of 8 per cent over the same period last year.

Viet Nam earned $1.67 billion from exporting tra fish this year, increasing by 7 per cent over 2015. 

Vietnam's agriculture sector rebounds after facing extreme headwinds

The agriculture sector has survived a bad year with a surprise growth of 1.2%, after extreme weather and a toxic spill disaster wreaked havoc on farmers across Vietnam.

It has been "a difficult year," said Nguyen Xuan Cuong, the agriculture minister.

"Extreme weather took place in every quarter," he said, pointing out that the sector actually contracted in the first six months before recovering in the second half. Last year it grew 2.4%, compared to 2014.

Right at the beginning of the year, a historic cold spell hit northern provinces, killing more than 12,000 cattle heads. Then came the most severe drought in almost a century, which caused losses of VND15 trillion (US$669 million) to farmers in the Mekong Delta and the Central Highlands.

“Heavy losses from natural disasters, combined with the mass fish deaths in four central coastal provinces, had caused the agriculture sector to contract by 0.18% in the first six months,” Cuong said.

The country managed to boost shipments of agricultural products in the second half, bringing the sector's exports this year to US$32.1 billion, up 6% from 2015.

Fruit and vegetables, for the first time, overcame rice to become the biggest earner for the sector, with shipments soaring 31% to around 2.4 billion. Exports of coffee, cashew nuts and pepper all recorded double-digit increases.

Vietnam's agriculture sector aims to achieve a growth rate of 2.5%-2.8% next year. Officials said the country will focus on modernizing farming, after the government agreed to grant loans worth VND60 trillion (US$2.6 billion) in total to high-tech projects.

Paper imports on the rise

Paper imports increased 15.2% in volume to 1.7 million tons and 7.5% in value to US$1.3 billion in the first 11 months of this year, according to Vietnam Customs.

In the period, Vietnam imported paper from 18 countries in the world, mainly from Asia. China topped among suppliers of paper for Vietnam, making up 27%, with 471,500 tons worth US$284.6 million, followed by Taiwan with 261,400 tons valuing at US$136.2 million and Indonesia with 237,900 tons worth US$165.8 million.

Among paper exporters to Vietnam, Russia enjoyed a robust growth of 64.17% to US$23,800 tons and Sweden suffered a deepest decline of 27.63% to 4,100 tons.

Enhanced shoe and leather testing ‘afoot’ in Vietnam

A trade agreement between Vietnam and the EU is likely to be ratified by member states within the next 12 months with implementation to begin in 2018, fuelling further expansion of bilateral trade between the two economies.

The implications are that large transnational exporters of primary goods will most likely be the main beneficiaries of the trade deal, while the domestic sector of some segments of the Vietnam economy may suffer due to increased competition.

One key area of contention that specifically – shoe and leather makers – will face concerns their compliance with EU consumer protection laws, said Rachel Garwood, at a recent forum in Hanoi.

Ms Garwood, who is the director of the Institute for Creative Leather Technologies, a research and education centre based at the University of Northampton said the key issue is commercial.

Vietnam shoe and leather exporters want to be able to expand their sales to consumers in the EU and there will be no way for them to accomplish that goal without complying with a considerable amount of EU law.

This is a fact of life that Vietnamese companies must come to terms with, she cautioned, adding that is in their best interests to keep in line with EU consumer law to the fullest extent possible.

She noted that customer and consumer demands in the EU are driving up standards in the footwear and leather supply chain, presenting the industry in Vietnam with a range of challenges if they are to become competitive, profitable and sustainable.

Customers in the EU are increasingly demanding products that are not only safe and of good quality but also manufactured in an environmentally and socially responsible manner.

The EU, she emphasized, shifts the burden to the shoe and leather exporters to demonstrate the quality and safety of products through professional testing for a vast array of requirements— materials test, flammability tests, electrical safety tests and electromagnetic compliance tests to name just a few.

Phan Thi Thanh Xuan, secretary general of the Vietnam Leather Footwear and Bag Association in turn told the conference attendees that government regulators currently do not have a comprehensive set of consumer safety laws and inspection requirements in place.

The fact that the shoe and leather industries are highly dependent on foreign raw materials just makes it more difficult for cobblers and leather goods makers in the industry to cope with the quality and safety concerns of the EU regulators.

The EU regulators will not accept lab results from Vietnamese testing centres, she noted, adding that to the extent current Vietnamese law requires testing, those tests are just a waste of time and money when it comes to exports to the EU.

Vietnam labs are also ill equipped to properly perform testing, she acknowledged, saying they can only test for a few illicit chemicals in leather, while there are 163 chemicals for which the EU requires testing.

Vietnam shoe and leather exporters are now required to send samples of product to overseas labs. Currently, about 1% of every dollar of revenue goes towards inspections, but in the future, that cost certainly will rise.

Nguyen Bich Thuy from the Thuong Dinh Footwear Ltd Co, said his company usually sends its samples overseas for testing before producing bulk orders. However, more testing will be required when the trade agreement with the EU comes into force.

A representative of Ladoda Production, Service and Trading Leather Products Company, said his company currently spends on average US$10,000 annually on lab testing, but fully expects that figure to grow exponentially when the EU trade agreement is ratified.

It’s the vision of his company, said the rep, to become a driving force in the leather and shoe business in the EU and they fully recognize the need to boost expenditures on laboratory testing to up their competitiveness in the market.

Vietnamese website on integration launches

A new website has been launched that is the Vietnamese public, social and private sector’s portal for up-to-date, complete and thorough information on ASEAN Economic Community (AEC) integration.

vietnamese website on integration launches hinh 0 The aim of the new website is to facilitate AEC integration policies and practices by sharing knowledge and successful strategies that support collaboration and cooperation between the three sectors. 

It is especially intended as a tool for business people in developing a comprehensive understanding of the AEC and improving the competitiveness of the Vietnam private sector within the region

The website provides a ‘one-stop-shop’ for information and good practices to support AEC integration, said Nguyen Thu Trang, director of the Vietnam Chamber of Commerce and Industry’s WTO and Integration Centre, the founder of the site.

The website (http://www.aecvcci.vn) covers all dimensions of integration and gathers information from a wide variety of stakeholders, he noted. It has been designed specifically for use by national, regional and local authorities, by civil society organizations, and by businesspeople.

Ambassador: Synchronous measures needed to reduce illegal fishing

It is necessary to work out synchronous measures to reduce the number of Vietnamese fishermen captured for illegal fishing in Indonesia’s territorial waters, Vietnamese Ambassador to Indonesia Hoang Anh Tuan said in a recent interview granted to the Vietnam News Agency (VNA) correspondents in Jakarta.

The recommendation came as the number of Vietnamese fishermen violating Indonesia’s territorial waters is on the rise compared to that of the neighbouring countries such as Myanmar, Thailand, the Philippines and Malaysia.

The Ambassador pointed out the fact that about 700 Vietnamese fishermen were arrested in Indonesia in 2015, about three times higher the figures in the previous years. 

The number has amounted to nearly 1,100 in 2016, he said, adding that Indonesia has so far arrested 98 illegal Vietnamese fishing boats and released over 1,000 fishermen.

Tuan cited the weak management of fishermen as well as the lack of communication campaigns and strict punishments as the main reasons behind this situation.

Despite the embassy’s efforts to protect Vietnamese citizens, including many fishermen, in the host country, it is still difficult for the staff to apply protective measures.

As the fishermen were captured in different regions, the embassy had to make contact with a lot of agencies in Indonesia to deal with the violations, he explained.

The ambassador proposed Vietnamese localities, which have fishermen and fishing boats captured in Indonesia, enhance awareness-raising campaigns so that sailors and fishermen understand that fishing in Indonesia’s territorial waters seriously violates the country’s law and will be strictly punished.

He also suggested learning experience from other countries such as Thailand and Myanmar in dealing with the violations.

“Vietnamese use made-in-Vietnam goods” campaign stepped up

The implementation of the “Vietnamese use made-in-Vietnam goods” campaign is a right policy that needs to be stepped up to boost the domestic market in the long run.

The task was set by the Party Committee of the Central Enterprises Bloc at a conference in Hanoi on December 27.

After seven years of implementation, 35 affiliate party committees have instructed enterprises and units to implement the movement, helping employees change their shopping habits towards choosing locally-produced goods and services.

Central enterprises have stepped up the application of advanced technology and improved human resources to create new quality products, saving trillions of dong.  

Speaking at the event, Secretary of the Party Committee of the Central Enterprises Bloc Pham Viet Thanh said each member of the 1.3 million-employee bloc must reform its administration and production system, expand distribution channels and improving the quality of services and goods, describing it as the only way to win Vietnamese people’s trust.

Nguyen Thien Nhan, President of the Vietnam Fatherland Front Central Committee, praised the implementation of the campaign by the Party Committee of the Central Enterprises Bloc, especially the initiative to encourage its enterprises, banks and units to prioritise using each other’s products.

He emphasised the need to raise public awareness of the issue, saying that producers should create quality products while Vietnamese consumers should show their patriotism by choosing locally made goods.

He recommended the committee to review policies and assess reality to develop measures to encourage the use of domestic goods like building a website introducing domestically-produced products to consumers.

Quy Nhon Port to list shares on HoSE     

Quy Nhon Port JSC has filed for the listing of 40.4 million shares on the stock market, the HCM Stock Exchange (HoSE) said in a statement on Tuesday.

Quy Nhon Port JSC was founded in 1976 as a State-owned enterprise and managed by Vietnam Marine Department. In 1993, the Ministry of Transport decided to establish the Quy Nhon Port State-owned enterprise.

In 2009, it became a member of Vietnam National Shipping Lines (Vinalines) and later turned into an independent accounting company. The company was equitised in March 2013 with chartered capital of nearly VND404 billion (US$17.7 million).

Following the equitisation, Vinalines was the largest shareholder of Quy Nhon Port JSC with ownership of 75 per cent, while the strategic investor held 12.45 per cent of the company’s capital.

Before the southern port operator submitted the list of shareholders to HoSE, one of its largest shareholders – Hop Thanh Investment and Mineral JSC – on November 3 sold more than 3.3 million shares to reduce its ownership in the port operator to 31.5 million shares, or 78 per cent of the capital.

Quy Nhon Port is located in the Gulf of Quy Nhon and surrounded by the Phuong Mai Peninsula, which has extremely advantageous conditions for vessels to anchor all year round. The port can receive vessels with weight up to 50,000 deadweight tonnage. It has more than 10 maritime routes that are connected to international ports, such as Manila, Singapore, Taiwan and Thailand, as well as Japan and Russia.

In 2016, Quy Nhon Port targeted a total of eight million tonnes of goods to be traded at the port, including over 4.8 million tonnes of export goods. Total revenue is expected to reach VND589.2 billion.

In early December, Quy Nhon Port asked its shareholders to approve the adjustment of this year’s business plan. The company planned to reduce the total volume of traded goods to seven million tonnes, down 12.5 per cent from the initial plan, and halve the pre-tax profit to VND65.5 billion. 

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