French businesses seek opportunities in Vietnam

A delegation of 20 French companies begins a visit to Vietnam on December 2 to learn about the business climate here and further strengthen their partnerships with domestic companies.

During their three-day stay in Vietnam, the delegation will meet with members of the Vietnamese government in charge of economic issues, as well as with representatives of the local private sector and international financial institutions.

French businessmen will be also invited to visit a number of French companies operating in HCM City-based industrial zones in order to gain a more concrete understanding of how to invest in the country. 

ANZ-funded MoneyMinded programme brings huge benefits

ANZ on December 1 signed a new MoneyMinded partnership programme with three partners in Vietnam - Blue Dragon Children’s Foundation, FPT University and Institute of Economic and International Trade (Foreign Trade University).

The programme, which aims to improve financial skills for wider groups in the local community, is part of ANZ’s long-term strategic approach to improving financial literacy in Vietnam. It has proven successful in Australia, New Zealand, Fiji, and Hong Kong. Vietnam is the first Southeast Asian country selected to carry out the programme.

ANZ Vietnam Acting CEO Phan Thi Thanh Binh said building a responsible business is one of ANZ priorities. “By offering this practical financial education program to Vietnamese young adults and selected disadvantaged groups, we believe that together with our partners we can build long-term financial confidence and well-being for Vietnamese people. We are pleased to find trusted partners in Vietnam and want to thank our partners for their support in this meaningful programme,” she elaborated.

Meanwhile, Michael Brosowski, CEO and Founder of Blue Dragon Children’s Foundation (BDCF) said “We welcome both the MoneyMinded programme itself, and the opportunity to help evolve the program with ANZ in Vietnam, particularly for BDCF’s disadvantaged beneficiaries. This is also a great learning opportunity for our staff.”

For his part, Nguyen Van Minh, Director of Institute of Economic and International Trade said “We see a clear added-value of the MoneyMinded program to the young students. We believe the program will assist our students, especially those who are entering the workforce to make better judgments and decisions about the use and management of their money”.

ANZ was among the first international banks to operate in Vietnam, establishing its first office in 1993. ANZ was named the most sustainable bank globally in the 2013 Dow Jones Sustainability Index, for the sixth time in seven years.    

Fertilizer imports from China dip

Vietnam imports of fertilizer from China in the first eleven months of the year dipped 24.4% in value and 15.2% in volume,compared to last year’s corresponding period tallying in at US$1.18 billion, according to the Ministry of Agriculture and Rural Development (MARD).

The Ministry also reports that China remained the largest fertilizer exporter to Vietnam, comprising 51.7% of the country’s  total fertilizer imports.

Vietnam imported fertilizer from 16 countries throughout the world in the period.

Vietnam: A tailor made market for Belgium

The Wallonie Foreign Trade and Investment Agency (AWEX) is marking its 20th anniversary of operations in Vietnam, a country it considers one of the most dynamic economies in Asia.

Since 1994 the mission of AWEX has been to deal with the vast aspects relating to foreign trade. In that capacity it has been responsible for developing reports such as foreign trade statistics and has advised the government on legislation and regulations

Most notably, AWEX has been recognized for organizing a project on training family doctors between the University of Liège (Belgium) and the University of Medicine and Pharmacy (Ho Chi Minh City, Vietnam).

As part of the programme, doctors from Wallonie flew to Vietnam to teach and on the other end of the spectrum Vietnamese students travelled to the University of Liège to study.

AWEX has also received high praise for its contributions to the development of economic relationships between the Wallonie region and Vietnam, specifically for its assistance in negotiating a deal involving Sopura-a leading company specializing in cleaning and sanitizing solutions for the brewing, beverage and food industries.

Under a joint venture agreement with a Vietnamese partner Sopura has invested 1 million euros in Vietnam. Most recently, Minister of Economy and Foreign Affairs of Wallonia Jean-Claude Marcourt has suggested that regional enterprises should invest in Vietnam because it boasts great development potential and low labour costs.

In honour of the occasion the French-language public-service broadcasting service of Belgium recently aired a short piece reporting the activities of AWEX in Vietnam over the past 20 years.

Rice exports up in value, down in volume

Vietnam’s rice exports in the eleven months leading up to December decreased 2.7% in volume but were up 1.9% in value compared to last year’s corresponding period,according to the Ministry of Agriculture and Rural Development (MARD).

The MARD reports that Vietnam grossed US$2.79 billion in revenues from shipping 6.03 million tonnes of rice abroad for the eleven month period.

Meanwhile, the Vietnam Food Association (VFA) says in the eleven month period, Vietnam shipped 5.549 million tonnes of rice abroad,  fetching almost US$2.421 billion, free on board (FOB) and US$2.556 billion, cost, insurance and freight (CIF).

China remained Vietnam’s largest rice importer during the period, accounting for 31.1% of the total export value in the period.

The Philippines came second, comprising 21.92% of export value, followed by Malaysia, Gana and Indonesia.

Imports from Hungary rise to $96.5 million

Viet Nam's imports from Hungary rose significantly, by 42.2 per cent to US$96.5 million over the past 10 months, according to General Department of Customs' statistics.

At the same time, Viet Nam exported $45.5 million worth of goods in the same period, down 12.2 per cent year on year.

From January to October, two-way trade still increased by 18.6 per cent to $141.8 million, in which Viet Nam ran a trade deficit of $51.1 million with Hungary, triple the figure reported one year earlier of $16.1 million.

Viet Nam primarily exported garments, means of transport, spare parts, telephone handsets and components to Hungary, while importing pharmaceutical products, machines, equipment, and tools.

Viet Nam coal imports to keep rising: Ministry

The Viet Nam National Coal and Mineral Industries Group has signed 10 memorandums of understanding (MoU) with foreign companies for an annual supply of about 20 million tonnes of coal.

The Ministry of Industry and Trade (MoIT) said that the companies with whom the MoUs have been signed are from Indonesia, Australia and Japan.

The Viet Nam Oil and Gas Group also signed contracts with Australian firm Ensham Coal Sales and Peabody, Indonesian firm Tuah Turangga Agung and Japanese firm Sojitz Corporation, besides an MoU with Indonesian firm Noble Group, for the supply of a total 10 million tonnes of coal a year to meet the demand of its thermal power plants.

According to the National Power Master Plan VII for the period 2011-20 with a vision to 2030, thermal power will comprise a large portion of the country's power supply. Therefore, the demand for coal in power production will be high, while the domestic coal supply is not sufficient.

The ministry forecast that Viet Nam will have to import an estimated 3 million tonnes to 4 million tonnes of coal in 2016, 35 million tonnes in 2020 and 80 million tonnes in 2025, as well as 135 million tonnes in 2030, for producing electricity.

However, a large quantity of imported coal will be difficult to get because of unstable supply.

Viet Nam can import coal from four countries, namely Indonesia, Australia and Russia, besides South Africa. In August, 41,500 tonnes of Russian coal arrived at Hon Net Port in the north-eastern Quang Ninh Province.

$230m ADB loan to aid push for economic reforms

The Asian Development Bank (ADB) has approved loans totalling US$230 million to support Viet Nam's ongoing reforms to overhaul public finances, boost private investment, and revive its economic competitiveness.

"Viet Nam is falling behind neighbours in terms of competitiveness and ease of doing business, and this is hurting its ability to attract private investment and grow the economy," Tomoyuki Kimura, ADB's Country Director for Viet Nam, said.

"Structural obstacles are holding the country back and this loan assistance from ADB, along with support from other donors, will allow the government to press ahead with measures to resolve these issues."

After the country's shift away from a centrally planned economy in 1986, growth averaged over 7 per cent a year from 1990 to 2007 while per capita income almost quintupled.

Viet Nam has seen more muted economic activity in recent years with domestic private investment as a ratio of gross domestic product declining from around 15 per cent a year in 2007-10 to 11.5 per cent in 2013.

Skills gaps in the workforce, a relatively unsophisticated financial sector, a hefty fiscal deficit, unequal conditions for state enterprises compared with the private sector, and an opaque business regulatory environment have held back competition, investment, and growth.

The programme will help the Government push ahead with measures to boost banking sector stability, improve public administration, strengthen State-owned enterprise management and develop a clearer and more transparent regulatory environment for business. Specific actions supported by the programme include implementation of the Government's credit institution restructuring plan, legislation to regulate and guide the rollout of an anti-corruption law, steps for the restructuring of State-owned enterprises, and amending the Law on Public Procurement.

The programme's outcomes will include simplified value-added tax procedures and a reduction in income tax for small- and medium-sized enterprises and transaction costs for small businesses, all of which will help boost productivity and support employment and poverty reduction.

The programme targets boosting private investment as a percentage of GDP to 15 per cent by 2020.

ADB's assistance is complemented by US$250 million from the World Bank and $150 million from the Japan International Co-operation Agency.

The programme's estimated completion date is June next year.

Falling world oil prices pose new challenges: Prime Minister

The Government yesterday admitted that the Vietnamese economy could face new challenges from the ongoing fall in world crude oil prices.

At a monthly cabinet meeting held yesterday in Ha Noi, Prime Minister Nguyen Tan Dung urged the finance ministry to calculate State budget income in order to avoid a deficit.

Oil prices fell from US$105 per barrel at the end of July to $68.53 at the end of November. This is the lowest in about four years.

Viet Nam exports crude oil, but it has to import finished petroleum products.

The PM also called for tighter control of prices and markets as well as combating contraband and low-quality goods as the New Year is approaching.

During January-November, the macro economy continued stabilise, while growth recovery was reported in all fields. GDP growth was higher than in the two previous years and is expected to exceed the set target of 5.8 per cent.

In the period, inflation was kept under control, the consumer price index (CPI) increased by 4.3 per cent, while the index of industrial production rose by 7.5 per cent - and FDI disbursement increased by 6.2 per cent.

PM Dung also requested ministries, sectors and localities to speed up economic restructuring in line with the changing growth model, while boosting the restructuring and equitisation of State-owned enterprises as planned.

He asked for more efforts to stabilise the macro economy, remove business obstacles, and hasten the processing and disbursement of projects, especially those involving infrastructure.

Meanwhile, the State Bank of Viet Nam was requested to implement measures to deal with bad debts, and re-organise credit institutions, making it easier for businesses to access loans.

The PM asked ministries, sectors and localities to continue implementing administrative reform and improving the business climate.

They were also urged to strengthen inspections over law enforcement and corruption and prevent wastefulness.

The Government leader stressed the need to focus on sustainable poverty reduction, new-style rural areas and job generation.

He also asked for concerted measures to combat social crimes, and ensure social order and traffic safety.

PM Dung also agreed with a proposal from the labour ministry that State cadres and public officers have four days off from January 1 to 4 to celebrate the New Year; nine days off from February 15-23 to celebrate Tet (Lunar New Year) and six days off from April 28-May 3 in observance of the Hung King's Festival, the Reunification Day and the Labour Day.

At a following press conference, head of the Government Office, Nguyen Van Nen, praised the decision for Thua Thien-Hue to end a controversial resort project at Hai Van Pass. The provincial government said the decision was made following public outcry over the project's planned location.

At the press conference, Nen also reaffirmed that the economy did not show signs of deflation.

Cashew industry urged domestic market focus

The cashew industry needs to boost consumption in the lucrative domestic market, a forum on the nut's nutritional value heard in HCM City yesterday.

Viet Nam's cashew exports have surged in recent years, but consumption at home remains very modest compared to levels in India, the US, or Australia, Nguyen Duc Thanh, chairman of the Viet Nam Cashew Association, said.

Dinh Thi My Loan, chairwoman of the Viet Nam Retailers Association, blamed the low sales at home to high prices, poor marketing, and lack of diverse products.

Besides, processors are not interested in the local market, she said, adding that cashew products are mainly sold during the Lunar New Year, making it hard to create a consumption habit among consumers.

Nguyen Tan Thanh, deputy director of cashew processing firm Thao Nguyen Co, said many people do not eat the nut in Viet Nam despite its high nutritional value because of high prices.

As a result, local consumption accounts for just around 5 per cent of output while in India 30-40 per cent is sold domestically, he said.

To promote consumption in the domestic market, Loan said the industry needs to strengthen advertising and marketing and develop more cashew-based products.

Besides trying to take their products to supermarkets and traditional retail channels like markets and shops, businesses should also make more effort to sell online, she said.

Educating people about the nutritional benefits of cashew is also key, she said.

Do Thi Ngoc Diep, director of the HCM City Nutrition Centre, said cashew nuts are high in calories, with 100gam providing 550-600 kcal compared to 300-350 kcal for cereals and 150-200kcal for meat.

They are also an abundant source of essential minerals, especially manganese, potassium, copper, iron, magnesium, zinc, and selenium, she said.

About 80 per cent of the fatty acids contained in the nuts are monounsaturated fatty acids, mainly oleic, which are good for people with heart diseases or diabetes who also have high triglyceride levels, she said.

It is a low blood sugar food, largely because it contains a high amount of fibre, she said.

By replacing animal-based foods, cashew can help prevent non-contagious diseases and malnutrition, she added.

HCM City signs BT infrastructure deal

The HCM City's People's Committee yesterday signed a deal with a local real estate developer to develop infrastructure for the Thu Thiem New Urban Area under the Build – Transfer (BT) mode.

Under the contract, the Dai Quang Minh Real Estate Investment Joint Stock Company will invest in the construction of four main roads on the peninsula's urban area, including a six-lane arc-shaped road, a four-lane road along central lake, a two-lane road along the Sai Gon River, and a flyover to the southern ecological forest area.

All of the four main roads, built under the BT strategy, have a total length of 12km including 10 bridges with total investment fund of VND12 trillion (US$560 million).

The company has invested a total of VND7 trillion (US$328.5 million) to develop infrastructure in the new urban area.

Prior to the contract, the company had signed an initial contract and broke ground for the project in February, to ensure that completion would occur in early 2017.

Construction on the four roads has started, and two of the 10 bridges have been built.

Tran Ba Duong, general director of the company, said the four roads' construction will be completed in early 2017.

Beside the four main roads, the real estate developer is investing in building the central square and riverside park under BT mode.

The central square and the riverside park have a combined area of roughly 30ha.

The total investment fund for this project is estimated at nearly VND2 trillion.

Designs for the square and park have been submitted for approval.

The company will also invest in Thu Thiem 2 bridge which links the city's central with the new urban area.

The company has completed design for the six-lane bridge, and construction of the bridge is expected to begin in April next year.

The city government has appointed the company to build a pedestrian bridge linking the peninsula with Nguyen Hue Boulevard.

The HCM City's People's Committee chose Dai Quang Minh Real Estate Investment Joint Stock Company to replace the Viet Nam Infrastructure Development and Finance Investment Joint Stock Company to build the four main roads and Viet Nam Construction and Import-Export Corporation to build Thu Thiem 2 bridge. The two companies subsequently withdrew from the new urban area projects.

Nguyen Huu Tin, deputy chairman of HCM City's People's Committee, said that infrastructure in Thu Thiem required trillions of Vietnamese dong. With the limited budget of the city, the Build-Transfer investment mode is appropriate, he added.

The city also plans to invest in other branch roads in the urban area, he added.

Under an agreement with the city, Dai Quang Minh Real Estate Investment Joint Stock Company will be given land to develop residential areas in the peninsula in exchange for investing in infrastructure.

The company plans to develop an 80-ha residential area near the southern section of the Mai Chi Tho Road, and a 20-hectare area with 11 plots of land near the northern section of the road.

According to the plan, the company will also build another urban area near a 150ha southern ecological forest area on the peninsula. The urban area will have 234 villas, 395 houses, 5,600 luxury apartments, a five-star hotel and a hospital.

Vietnam Airlines yesterday officially launched its new product, offering travellers a holiday package combining round-trip airfares with hotel services.

Vietnam Airlines Deputy General Director Trinh Ngoc Thanh said the new travel package is part of the carrier's increasing efforts to carry out its customer-targeting policy.

The VNA Holidays travel package will be sold via the carrier's official website www.vietnamairlines.com. They will be initially offered on domestic routes, as well as international destinations departing from Viet Nam.

The Ministries of Finance, Industry and Trade, and Planning and Investment, and the State Bank of Vietnam (SBV) have vowed to increase their coordination in macro-economic management.

A document to this effect was signed by representatives of the ministries and the SBV on the sidelines of the regular Cabinet meeting in Hanoi on December 1.

It paves the way for them to coordinate the implementation of assigned tasks in managing finance, monetary, credit, investment and trade fields.

In March 2011, the Prime Minister instructed the Ministry of Planning and Investment to work with the Office of the Government and relevant ministries and sectors to build a project on institutional reform and enhancement of coordination in macro-economic management and regulation for the 2011-2020 period.-

 Bac Lieu businesses improve quality of aquatic products

The Mekong Delta province of Bac Lieu grossed more than 355 million USD from selling over 40,000 tonnes of aquatic products abroad in January-November.

The result was attributed to seafood businesses’ efforts in securing traditional markets and stabilising production, according to the provincial Department of Agriculture and Rural Development.

Businesses have further invested in modernising shrimp production lines and processing technology as this staple accounts for 98 percent of the local export value.

To win trust from customers, enterprises have concentrated on improving the quality of the products, ensuring food safety and hygiene, and expanding markets to the Republic of Korea , Japan and some Middle East countries.

Bac Lieu is currently home to 33 aquatic processing factories, with a total capacity of 100,000 tonnes per year.

Local exporters strive to earn 400 million USD by the year’s end, with over 357 million USD from seafood products.-

 An Giang wants to boost farm produce consumption in Japan

Vice Chairman of An Giang provincial People’s Committee Nguyen Thanh Binh suggested the possibility of boosting home-grown farm produce consumption in Japan during a meeting with Japanese Consul General in Ho Chi Minh City Nakajima Satoshi in the southern locality on December 1.

Satoshi, for his part, vowed to serve as a bridge connecting An Giang and Japan, especially in agriculture and health care.

Via the Japan International Cooperation Agency (JICA), An Giang and Japan has formed tie-ups since 1997, with over 20 Japanese projects worth more than 31 billion VND (1.4 million USD) so far, focusing on health care, education, energy, clean water, agricultural personnel training, and rice production-processing-export.

An Giang has also worked closely with Japan’s Saga university on hi-tech and eco-friendly farming. In a joint effort with Japan’s Central Union of Agricultural Cooperatives, the locality and Kagoshima prefecture have stepped up coordination across agriculture, trade and tourism.

In 2007, the province established a chapter of the Vietnam – Japan Friendship Association with 35 members.

During his visit, the Japanese guest attended a gathering of Vietnamese and Japanese citizens and an exhibition introducing bilateral economic and tourism potential.

 Dong Nai: Trade surplus reaches 330 million USD in 11 months

The southern province of Dong Nai recorded a trade surplus of 330 million USD in the first eleven months of 2014, according to the provincial Department of Industry and Trade.

Total external trade turnover of the province in the period stood at 22.77 billion USD, including 11.55 billion USD in export earnings, a yearly surge of 16.8 percent.

Head of the department’s Planning Office Phan Van Dan said the main key currency earners enjoyed good growth, including footwear (14 percent), garment (8 percent), wooden products (9 percent). Together the three industries accounted for 40 percent of the province’s total export value.

The US, the EU, and Latin America remain the biggest markets for Dong Nai’s products.

Deputy Chairman of the Dong Nai Import-Export Association Nguyen Ngoc Tuan said the trade turnover increased thanks to the recovery of the global market.

As part of efforts to boost export, the province will step up administrative procedure reform, he added.

Dong Nai aims for 1 billion USD in export turnover in December.

The southern province of Dong Nai recorded a trade surplus of 330 million USD in the first eleven months of 2014, according to the provincial Department of Industry and Trade.

Total external trade turnover of the province in the period stood at 22.77 billion USD, including 11.55 billion USD in export earnings, a yearly surge of 16.8 percent.

Head of the department’s Planning Office Phan Van Dan said the main key currency earners enjoyed good growth, including footwear (14 percent), garment (8 percent), wooden products (9 percent). Together the three industries accounted for 40 percent of the province’s total export value.

The US, the EU, and Latin America remain the biggest markets for Dong Nai’s products.

Deputy Chairman of the Dong Nai Import-Export Association Nguyen Ngoc Tuan said the trade turnover increased thanks to the recovery of the global market.

As part of efforts to boost export, the province will step up administrative procedure reform, he added.

Dong Nai aims for 1 billion USD in export turnover in December.

Revised laws help improve investment climate: Minister

The revised Investment and Enterprise Laws, adopted by the National Assembly last week, will further improve the country’s investment environment, Minister of Planning and Investment Bui Quang Vinh has said.

He mentioned to the identification of the areas prohibited from business and investment as a noticeable change that makes the country move closer to the world’s standard practices.

Other fresh change is that local businesses are not entitled to getting business licenses since they are allowed to do business in the areas that are not banned by law, except for those wishing to join conditional fields.

Among 267 conditional business areas, the Government determines which will need licenses, he said, explaining that required conditions aim to serve people’s developmental benefits, ranging from health issues, security, to environmental protection.

Regarding the management and use of seals at enterprises, Vinh said the revised Enterprise Law allows businesses to decide the format and content of seals and requires them to be responsible for their own seals.

The law also encourages the use of personal signatures, especially e-signatures, as a legal basis replacing the seals, he said, adding that seals, however, cannot be immediately abolished due to the reality in the country.

The amended Investment and Enterprise Laws are expected to create a wave of new businesses as they encourage people to invest their idle money in business activities, the minister said.

They are also expected to generate millions of jobs and other important values for the country, he noted.

 Dong Thap aims to boost rice, fish farming

The Mekong Delta province of Dong Thap plans to boost rice and tra catfish production in a move to double the income of local farmers by 2020.

The Government and the Ministry of Agriculture and Rural Development chose the heavily-based agricultural province as the first to pilot the national agricultural restructuring plan. Dong Thap produces the most tra catfish and ranks third for rice production. Agriculture accounts for 36 percent of GDP.

The province aimed to achieve a growth rate of more than 5 percent by 2020 and reduce the number of poor households by two percentage points annually, according to Provincial Party Committee Secretary Le Minh Hoan. In addition to rice and tra catfish, the province would focus on mangoes, bonsai trees and poultry.

Under the project, rice-growing land would be divided in two. One 10,000ha area with the annual yield of 1.5 million tonnes would provide rice for export to key markets such as East Asia, China and the EU, while another 70,000ha area with the annual yield of 1 million tonnes would provide rice for African and Southeast Asian markets. A third 1,500ha area would be set aside for fish farming, yielding 300,000 tonnes of fish per year.

Chairman of the provincial People's Committee Nguyen Van Duong said the province had made several requests to the Government, including subsidies for farmers, piloting public private partnerships in developing agricultural and rural infrastructure, building industrial-services zones in the intensive cultivation areas and developing key agricultural commodity value chains.

He also said that the province would create favourable conditions for enterprises investing in agricultural development when it came to obtaining capital, premises and human resources.

The Republic of Korea's Rural Community Corporation (KRC), the Sustainable Trade Initiative (IDH) and provincial leaders signed a cooperation agreement in the fields of rice cultivation and aquaculture breeding at a conference on agricultural restructuring for Dong Thap province held in Hanoi on November 25. Under the agreement, the KRC will provide capital to build a 2,000ha rice cultivation area and the IDH will supply technical support for aquaculture farming.

Delegates suggested that the province clarify how it would boost the value of the five key products, citing tra catfish fat as an example. China and Japan currently buy this product from Vietnam, process it as supplemental food and export it to Vietnam at a higher cost.

Microsoft and MobileWorld cooperate

Today, Microsoft and the domestic retailer MobileWorld officially signed the Memorandum of Understanding (MOU) in Ho Chi Minh City.

MOU is a watershed cooperation that Microsoft tends to bring a comprehensive and synchronised technology platform on every personal mobile device while MobileWorld, with its leading retailer experience, helps a large number of Vietnamese consumers access the technology more easily.

“The cooperation with Microsoft – the world’s leading IT corporation enables us to better offer genuine products to help Vietnamese consumers to experience and utilize high quality products and services worth to be paid for their value,” Tran Kinh Doanh, general director of MobileWorld said.

Speaking at the event, Vu Minh Tri, general director of Microsoft Vietnam shared, “The cooperation between Microsoft and MobileWorld is expected to change Vietnamese consumer practice to authorised products with international-standard services and quality. The MOU opens a new path offering the highest benefits for our customers, which is the prior target that we look forward to.”

This collaboration between Microsoft and Mobile World is the proof for mutual commitment to tend to a common target to bring modern products attached with the most efficient adds-on and optimal services for customers in Vietnam market.

Vinh Long in need of ODA funds

The Mekong Delta province of Vinh Long is seeking investment capital to accelerate its economic and technical urban development during 2015-2020, with official development assistance playing a crucial role. Phu Khoi reports.

Vinh Long covers nearly 1,500 square kilometres and consists of seven districts and one city with a population of more than one million.

Its mainstay products include rice, Nam Roi grapefruit, high export value fresh-water seafood and clay and sand deposits. The province is also home to famous craft villages producing tiles and bricks, pottery and other handicrafts.

From 2001 to 2010, Vinh Long received official development assistance (ODA) funds for eight projects worth some $21.7 million, focusing on water supply, rural environmental sanitation, transport, water conservation, and healthcare.

The province has so far directly benefited from ODA-funded key government projects such as the state-of-the art cable-stayed My Thuan and Can Tho bridges whose completion has made significant contributions to pushing forward development and gearing the provincial economy to shift towards a lower proportion of agriculture-forestry and fishery and an increased percentage of industry, construction, trade and services.

In terms of the implementation of ODA-funded projects, this year the province has plans for six projects, including one new and five already underway with capital allocation this year surpassing VND113 billion ($5.3 million).

In the remaining months of this year, Vinh Long has continued implementing the six projects, in which two projects (one on ensuring education quality at schools and the other on building a six kilometre road stretch crossing Mang Thit district funded by the World Bank) are expected to be put into operation before the year-end. In regard with the remaining four projects, efforts hve been made towards completing their capital disbursement plans for this year.

In a recent visit to the Mekong Delta, Deputy Minister of Natural Resources and Environment Nguyen Manh Hien praised the efficiency of the VLAP project on modernising local land management system and pledged to promote the model in the region in the upcoming time.

Besides, Vinh Long is calling for ODA funds to capitalise the construction of Vinh Long city waste-water treatment plant with the daily capacity of 50,000 cubic metres valued at VND550 billion ($26.2 million) in the total investment capital. The project is expected to contribute to give Vinh Long city a facelift.

Next year, Vinh Long is considering carrying out five projects (four already existing, and a new one which involves equipment upgrades for Vinh Long general hospital). The capital plan for next year is an estimated VND297.8 billion ($14.1 million), with VND211 billion ($10 million) from ODA funds and the remainder from government bond capital.

The prime minister has approved Vinh Long ’s socio-economic development plan until 2020, aiming to make the most of the province’s natural advantages, increase international integration and tackle challenges, striving to form a modern economic structure which can compete on a domestic and international basis.

The development planning in this area also highlights the need to combine socio-economic development with building a strong political system, ensuring defence, security and social order to transform Vinh Long into a beautiful, green and clean urban area. The plan also aims to create a balance between rural and urban areas, gradually improving people’s standards of living and shaping a knowledge-based economy based on quality human resources.

Another important content is boosting links with the Mekong Delta city of Can Tho to form an economic, training, cultural, science and technology hub in the region.

To realise these ambitious goals, Vinh Long would need about VND240 trillion ($11.4 billion) in investment capital during 2011-2020. A sum of VND70 trillion ($3.3 billion) will be required for the 2011-2015 period, and the rest for the next phase from 2016 to 2020.

As a province with strong advantages in agricultural production, Vinh Long has paid due heed to developing technical infrastructure serving agricultural production, promoting trade exchanges to boost consumption, and mitigating the impact of climate change. The province has developed a comprehensive investment programme for technical infrastructure development during 2011-2015 with orientations until 2020. ODA is regarded as an important source to help the province reach its goals.

The province is also increasing efforts to upgrade and develop 1,580km of district and provincial roads, as well as roads in rural areas, reaching 2,080km of roads by 2020.

The existing Vinh Long road needs further expansion coupled with greater efficiency in the operation of the Binh Minh and An Phuoc ports.

Another important task is upgrading and building the channel, dyke and jetty system to ensure water supply for an additional 10,000ha of agricultural land, as well as promoting aquaculture. Investment must be put into tackling flooding and striving to ensure sufficient water for agricultural land.

The province intends to effectively tap existing water plants and build new systems to ensure 60 per cent of households in rural areas have access to clean water supply by 2015, increasing to 85-90 per cent by 2020.

Amid the rapid pace of urbanisation, developing an urban area network has become an imperative demand in the province.

Existing urban areas will receive further upgrades with revisions to the general planning of Vinh Long city to achieve grade II city status, turning Binh Minh town into a city, and upgrading Vung Liem and Tra On towns to reach grade IV city standards.

Another task is establishing four new urban areas at Tan Quoi (Binh Tan), Phu Quoi (Long Ho), Cai Ngang (Tam Binh) and for Huu Thanh (Tra On) to reach grade IV city standards.

In respect of social housing development, the province intends to provide 1,500 apartment units for low-income people in urban areas, ensuring accommodation for 55 per cent of students and half of the industrial zone (IZ) workers.

Regarding the average housing area, the target is a floor area of about 15 square metres per capita in urban areas, while in rural areas the target is 25sq.m per capita by 2015.

To ensure sufficient investment, the province has set forth plans to tap diverse capital sources. This plan will ensure the effective use of domestic sources and will take advantage of external sources to modernise the infrastructure network, particularly in rural areas.

In addition, ensuring power supply for production at the province’s IZs and industrial clusters, as well as at craft villages and serving people life is also a must. It is also crucial to scale up efforts to attract ODA funds and create a more attractive investment environment in the province through tax and fee policies and building better IZ infrastructure facilities.

Jetstar Pacific opens Ha Noi-Bangkok route

Viet Nam’s low-cost carrier Jetstar Pacific announced its launch of a direct flight route between Ha Noi and Bangkok (Thailand) by Airbus A320.

Accordingly, the route is planned to operate from March 29th, 2015 with a daily return flight. Flights from Ha Noi will depart at 12:25 pm while the return  leaves Bangkok at 15:35 pm.

Every Tuesday, Wednesday and Saturday, the flights from Ha Noi will depart at 12:00 pm and the return from Bangkok will take off at 14:40 pm.

Tickets for the route are being sold at www.jetstar.com and booking offices nationwide, or call 19001550.

Previously, the carrier inaugurated its service between Ho Chi Minh City and Bangkok, which will officially operate on December 10.

This is the second route linking Viet Nam and Thailand opened by Jetstar Pacific.

Vietnam cuts rice export prices

The Vietnam Food Association has reduced the floor export price of 25 percent broken rice to US$380 a ton from US$410 since the end of November.

The prices of five percent, ten percent and fifteen percent broken types will be calculated by exporters.

Since early this year to mid November, Vietnam exported 5.5 million tons of rice, a reduction of 10 percent over the same period last year.

The Free on Board export price averaged US$436 a ton, a year on year increase of US$5 a ton.

Vietnam’s rice export volume is expected at 6.2 million tons this year, lower compared to 6.7 million tons last year.

Land in Hanoi Old Quarter over VND1 billion per square metre

Many plots of land in Hanoi Old Quarter have been offered on the market at prices of up to VND1.1 billion (USD52,380) per square metre compared to price ceiling of VND162 (USD7,710) million proposed by authorities.

Many plots of land in Hanoi Old Quarter have been offered on the market at prices of up to VND1.1 billion (USD52,380) per square metre

The Hanoi People’s Committee is now seeking the municipal People’s Council’s approval for the land price frame for May 2015 through 2019. Under the proposed price frame, the highest price of land in Hoan Kiem District would be VND162 million (USD7,710) per square metre.

Still, Chung, the owner of a 50-square metre plot, is asking a total of VND55 billion per square metre for his property, equal to VND1.1 billion per square metre. He said that he based the price on the opinions of real restate agents and other property transactions in the Old Quarter.

Tuan is also asking VND100 billion for a 100 per square metre property on Hang Bai Street. Although some have expressed interest, there have been no solid offers yet.

Although these seem to be extreme cases, even the more common price of VND650-700 million per square metre is still well above the proposed price frame.

Under the newly-proposed price frame, the maximum price for agricultural land would remain at VND252,000 per square metre for the next five years.

Meanwhile, the land prices for communes bordering the city would be between VND2 million and VND29 million per square metres.

PM asks for specific measures to beef up SOEs equitization

PM Nguyen Tan Dung has tasked his inferiors to accelerate the equitization scheme of State-owned enterprises (SOEs).

The Government chief made the request at the Government’s monthly meeting in Ha Noi on Monday.

The State is currently holding over VND 1,200 trillion of capital in SOEs but the sale of SOEs shares was still modest.

According to a report of the Ministry of Planning and Investment, as of late October, 119 SOEs were restructured and 100 of the total were equitized.

The total capital withdrawn from non-core business lines by SOEs valued over VND 3,500 billion, 3.6 times higher than that of whole year of 2013.

PM Dung stressed the importance of equitization as it not only generates more capital for development but also contributes to making fundamental changes to corporate administration.

He also asked for synchronous and specific measures to speed up the SOEs equitization.

Ministries shake hands in macro-economic management

Representatives of the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Industry and Trade and the State Bank of Viet Nam on Monday in Ha Noi inked a regulation specifying their cooperation in macro-economic management and regulation.

The signing ceremony was witnessed by PM Nguyen Tan Dung and the Cabinet.

The regulation paves the way for the ministries to implement assigned tasks detailed in the PM’s Decision 1317/QD-TTg, dated August 6, 2013 approving scheme on reforming the coordinating mechanism in managing and controlling the macro-economy, especially for the policies of finance, monetary, credit, investment, trade and prices.  

On March 24, 2011, the PM instructed the Ministry of Planning and Investment to work with the Office of the Government and relevant ministries to compose a project on institutional reform and strengthening coordination in macro-economic management and regulation for the 2011-2020 period.

Survey: Vietnam’s business conditions for manufacturing records sharpest improvement in five months

Vietnam’s Purchasing Managers’ Index (PMI) rose to 52.1 in November, from 51.0 in October, signaling the most marked improvement in manufacturing conditions in five months.

A recent survey by HSBC and Markit Economics stated that growth in the Vietnamese manufacturing sector regained momentum in November as output and new orders rose at faster rates and stocks of purchases increased at the sharpest pace in the survey’s history.

Stronger operating conditions have been recorded every month since September 2013.

Manufacturing production in Vietnam increased for the fourteenth successive month in November, with the rate of growth the fastest since April.

Falling prices in world commodity markets impacted the sector, with input costs decreasing for the first time since late-2012 and output prices falling at the sharpest rate since June 2013.

Competitive pricing and good quality products have reportedly been key to securing new work from both domestic and export markets. New export orders rose for the third month running - the fastest pace since April.

Trinh Nguyen, Asia Economist at HSBC said that the sharp rise of the PMI index in November reflects the competitiveness of Vietnam’s manufacturing sector. Thanks to labour costs lower than in China, Vietnam manufacturing is gaining global market share. Meanwhile, the contraction of input prices mirrors the drop of headline CPI to 2.6% year-on-year in November.

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