Vietnam fulfils import, export targets

Vietnam has so far earned US$87.2 billion from exports, which is well above the yearly target of US$80 billion set by the Ministry of Industry and Trade.

This represents a 34.7 percent rise from the same period last year for all export items. The highest increase was recorded in the foreign investment sector (up 40.7 percent to US$49.4 billion).

In the meantime, imports hit the set target of US$94 billion, notably with a rise of 1.7 percent to US$9.3 billion.

Vietnam’s trade deficit was estimated at US$700 million in November and at US$8.9 billion over the past 11 months.

Key items showing high increases included textiles and garments, crude oil, footwear, seafood, rice, wood, rubber, and coffee.

The US remained Vietnam’s largest export market in terms of turnover (US$13.9 billion, or 17.7 percent of the country’s total export revenues). Next in line were the EU, ASEAN, China, and Japan.

Vietnam earned about US$2 billion from exporting agricultural and forestry products, mainly to China and the US, in November.

The country’s major imports included machinery, petrol and oil, electronics, computers, plastics, chemical products, and fertilizers.

Vietnam promotes trade ties with Hong Kong

Vietnam is taking part in the 2011 World SME Expo in Hong Kong, China, to promote the business and investment environment of Vietnam and facilitate linkages between the two countries’ businesses.

The three-day expo, opened by the Trade Promotion Department of Hong Kong on December 1, has drawn the participation of 320 small and medium enterprises from 33 countries and territories across the world.

The expo is a good chance for Vietnam to introduce its exports, such as seafood, agricultural and garment products and foster exports to Hong Kong and other countries.

Participating in the fair, Vietnamese enterprises expect to seek new partners and expand investment cooperation with foreign enterprises.

Vietnam and Hong Kong trade and investment relations have developed strongly, with two-way trade reaching US$2.4 billion in the first ten month of this year.

Up to October 20, the total investment of Hong Kong in Vietnam reached US$10.9 billion, with a total of 650 projects.

Cai Mep International Terminal inaugurated

The deep-water Cai Mep International Terminal (CMIT) was officially inaugurated in Tan Thanh district, Ba Ria-Vung Tau province, on December 1 in the presence of Danish Crown Prince Frederik.

The terminal is expected to give new impetus to socio-economic development in southern provinces and increase trade volume between Vietnam and other countries, said Ngo Thinh Duc, Deputy Minister of Transport.

It will shorten the shipping time between Vietnam and major markets such as the EU and the US by 7-10 days, and trim costs by avoiding transit through intermediate ports.

Construction of the port began in May 2008 on an area of 48 hectares with a total investment of US$250 million.

During its construction, the port received a 131,263 DWT container ship.

Trade fair showcases Vietnamese, Lao products

A Vietnam-Laos trade fair opened in Vientiane on December 1, drawing the participation of 180 businesses from both countries.

On display at the 270 pavilions are a wide variety of high quality and well-designed products.

A seminar was also held the same day to create opportunities for businesses to promote their high quality products and cooperate in building an import and export network, contributing to two-way trade turnover.

In recent years, bilateral trade has increased significantly, averaging 24 percent annually in the 2005-2010 period. In the past 10 months, the trade turnover reached US$581 million, up 51 percent.

Key import-export items include steel, iron, oil and gas, means of transport, wood products, garments and textiles, and recently, fruit and farm produce.

The fair, jointly organised by the Vietnam and Lao Ministries of Industry and Trade, is part of the activities to celebrate the Vietnam-Laos Friendship Year 2012.

GMS nations aim to expand green growth

Representatives from the Greater Mekong Sub-region (GMS) nations met in Hanoi on December 1 to discuss ways to expand green growth.  

GMS region is one of the areas which has the highest bio-diversity in the world and boasts a wide variety of fauna and flora with high forest coverage. At present, the economic growth in the region is mostly based on the exploitation of natural resources using obsolete production technologies which caused environmental pollution. Due attention has not been paid to some environmentally-friendly economic sectors.

At the seminar, delegates emphasized that it is time for GMS nations to restructure the economy by promoting the role of nature in order to achieve steady growth and improve the livelihood of nearly 400 million people in the region.

These nations aimed to develop the green economy by maintaining and developing natural resources, reducing environmental pollution and green house emissions.

Nguyen Van Tai, Director of the Institute of Strategy and Policy on Natural Resources and Environment said that GMS nations are implementing the economic restructuring and transition. Therefore, it is important for GMS nations to expand the green economy and build a roadmap to limit the use of fossil fuels.

Delegates also devised orientations in their countries’ strategies and roadmap on green growth and discussed measures to strengthen cooperation in conserving and developing natural resources, and building green economy in the region.

The event was co-organised by the Ministry of Natural Resources, the Asian Development Bank, and international organizations.

Vietnam, Belarus aim to increase two-way trade to US$1 billion

Important cooperation projects in automobile manufacturing, mining, and fertilizer production between Vietnam and Belarus will help increase two-way trade to US$1 billion in the next five years.

Belarusian Prime Minister Mikhail Myasnikovich was speaking at an economic forum in Ho Chi Minh City on December 1, which attracted hundreds of businesses from Vietnam and Belarus.

He said the two countries have signed many important legal documents making it easier  for businesses to expand their cooperation.

In addition, he said, the time-honoured political relations have also supported businesses in fostering their partnerships.

Tran Vinh Nhung, Deputy Director of the HCM Municipal Department of Industry and Trade, briefed the forum on the city’s socio-economic situation. He stressed that the establishment of cooperative relationship between HCM City and Belarus’s Minsk Capital City in 2008 has helped Vietnamese and Belarusian businesses find investment opportunities.

Ho Chi Minh City always welcomes and creates favourable conditions for foreign businesses, including those from Belarus, to invest in the city, he said, adding that the forum will be a platform for investors to learn more about the city’s investment environment.

On the occasion, PM Myasnikovich witnessed the signing of a cooperation agreement between ten Vietnamese and Belarusian companies on manufacturing tractors, car tires, and fertilizers.

Mr Myasnikovich and his entourage also visited the ongoing 9th Vietnam International Trade Fair in HCM City before concluding his visit to the Southeast Asian country.

Vietnam Airlines receives Airbus A330

An Airbus 330-200 aircraft, manufactured in the French city of Toulouse for Vietnam Airlines, landed at Noi Bai International Airport in Hanoi on November 30.

This is the 11th A330 craft in the fleet of the national flag carrier.

Vietnam Airlines plans to expand its fleet to 115 and 170 aircraft by 2015 and 2020 respectively.

This year, the carrier expects to carry more than 14 million passengers and 193,000 tonnes of cargo, representing 20 percent and 16 percent increases, respectively in comparison with last year.

Agricultural trade surplus at US$8.2 billion

Trade surplus in the first 11 months of the year was estimated at US$8.2 billion with agricultural, forestry and fishery exports rising to US$22.6 billion, and imports staying at US$14.4 billion.

Seafood exports topped the list at US$5.6 billion, followed by rice exports with a total volume of 6.8 million tonnes worth US$3.5 billion.

Other items including coffee, rubber and wood products also showed a sharp increase in export value over last year.

WB managing director to visit Vietnam

World Bank Managing Director Sri Mulyani will pay a two-day visit to Vietnam on December 2- 3 at the invitation of the Vietnamese Government.

The WB representative office in Hanoi announced on December 30 that her visit aims to gain a better understanding of Vietnam’s development process and discuss ways to help the country successfully implement its development goals.

She is scheduled to meet with Party General Secretary Nguyen Phu Trong, Prime Minister Nguyen Tan Dung, State Bank Governor Nguyen Van Binh and leaders of several ministries to compare notes on development issues.

She will also meet with scholars and representatives of the private economic sector, development partners and visit Hanoi Polytechnic University.

Banks told to boost anti-corruption fight

Measures to fight wrongdoing and corruption in the banking system and ensure bank deposits are urgently needed, Deputy Prime Minister Nguyen Xuan Phuc said on November 30.  

Addressing the seminar on preventing corruption in the banking system held in Ho Chi Minh City, Phuc said: “Several banks have not strictly complied with laws, causing negative consequences and big losses to the State and people’s property.”

He urged the State Bank of Vietnam to submit soon a proposal to restructure the commercial banking system. The structuring should make the system more transparent so as to prevent all forms f corruption, he said.

Phuc also requested each bank to have stricter recruitment and promotion processes. Leaders of banks that have personnel violating general laws and banking regulations should be penalized and those committing the violations fired, he said.

Banks must set up a monitoring system that works and institute policies to enhance transparency and publicizing of information, he said.

Phuc also encouraged banks to work closely with public security agencies in preventing corruption and discovering violations. He asked the security agencies to assist banks in the task.

Last-term CG meeting targets economic restructuring and poverty reduction

Economic restructuring and poverty reduction will be a major topic discussed at the last-term Consultative Group (CG) Meeting for Vietnam scheduled for December 6 in Hanoi.

This was announced by the World Bank (WB) Country Director for Vietnam Victoria Kwakwa at a press briefing in Hanoi on November 30.

The upcoming CG meeting will discuss Vietnam’s macroecomic situation this year, orientations for next year, social welfare, and poverty reduction. The event will also focus on aspects of economic restructuring including public investment, finance-banking, State-owned enterprises, and lessons from Asian and European nations.

Mrs. Victoria Kwakwa argued that banks provide capital for the economy, therefore, difficulties facing the banking system will also be barriers to business operations.

Sharing her views, the Regional Manager of the International Financial Corporation (IFC), Simon Andrews, said Vietnamese banks need to distribute their capital resources more efficiently to bolster the country’s economic restructuring efforts in the near future. Measures should be taken to speed up the process.

Mrs. Victoria Kwakwa also highlighted the importance of restructuring the national economy in order to sharpen the competitiveness and increase the effective use of capital resources.

The last-term CG meeting will focus discussion within one day instead of two days as it was previously held Experts from countries of the same economic circumstance will share their experiences in sustainable development with Vietnam, she noted.

Singapore keen to invest in Vietnam’s potential areas

Singaporean businesses are seeking investment opportunities in areas of Vietnam’s strengths including financial and banking services, insurance, training, wholesales, retail, and information and communication.

The Vietnam-Singapore Business Forum opened in Hanoi on November 30, attracting 300 delegates from both countries including more than 100 Singaporean entrepreneurs.

The event gave businesses a good opportunity to set up relations between potential partners, have access to capital resources, and seek business opportunities in Vietnam and Singapore.

In his speech, Chairman and Director General of KimderWorld Group, Singapore, Ricky Tan, said the Vietnamese Government’s changes in its policies have helped foreign businesses operate better. However, there have been differences in the enforcement of laws by Vietnamese localities, causing particular barriers for foreign businesses including those from Singapore. Therefore, in order to create an attractive investment environment in Vietnam, law enforcement in the country need to be done in a synchronous manner to help investors do business legally.

Cooperation in economics, trade, and investment between Vietnam and Singapore has expanded in recent times after a framework agreement on connectivity was signed.

Over the past 10 months, Singapore has had 81 new investment projects in Vietnam with a total registered capital of US$ 1.4 trillion.

Being the second biggest investor in Vietnam, Singapore is becoming involved in most economic sectors in the country such as oil and gas exploitation, industry, agro-forestry and fishery product processing, infrastructure development, services, and real estate.

Seminars in Italy highlight Vietnam’s economic potential

The Vietnamese embassy in Italy organized two seminars on business opportunities in Vietnam on November 28-29 in the Italian cities of Carrara and Milan, respectively.

Both the events aimed to accelerate economic diplomacy and promote Vietnamese goods to Italians investors.

At the seminar in Carrara, Vietnamese Ambassador to Italy Dang Khanh Thoai and Trade Counsellor Tran Than Hai delivered presentations on Vietnam’s politics, economy, and society as well as trade opportunities in the country.

The seminar focused its discussions on cooperation opportunities in investment and technology transfer for stone-exploiting enterprises, especially in the context of the boom in construction in Vietnam, an abundant source of stone material.

Carrara is now a world renowned centre for exploiting stone and manufacturing famous products, especially marble. Carrara-based companies possess world-leading technologies in this field.

Giogio Bianchini, President of the Group Internazionale Marmi e Macchine Carrara SPA (IMM), said that his company will seek future investment opportunities in Vietnam. According to Bianchini, many Italian firms have invested in China because they think the nation has a quick growth rate. However, Vietnam is also a very attractive destination owing to its political stability, high economic growth, abundant labour, and great potential for development.

The second seminar, held in Milan on November 29, also caught the attention of a wide range of Lombardy Region’s authorities and businesses.

At the event, Ambassador Thoai briefed participants on the situation in Vietnam and highlighted the many opportunities for Italian businesses to invest in and export to this market. Thoai suggested that businesses invest in such fields as infrastructure construction, machinery, mineral exploitation, agriculture, farm produce processing, chemistry, tourism, environmental technology, and the treatment of waste water and solid waste.

WU-the largest remittance payment network in Vietnam

The Vietnam Records Book Centre (VRBC) has recognized Western Union (WU) as the largest remittance payment network in Vietnam on November 29.

VRBC Director General, Le Tran Truong Anh, said at a ceremony marking its 160th anniversary that the recognition of the company was based on its effective operations in most of the cities and provinces across the country.

Since entering in Vietnam in 1994, the US financial services and communications company has set up 8,000 transaction offices providing the most effective money transfer services for overseas Vietnamese.

Japan upbeat on local investment climate

Vietnam continues to be a lucrative investment venue for Japanese investors.

For example, in late October 2011 VinaKyoei’s second phase production capacity expansion got the thumbs-up. Accordingly, Japan’s fourth largest steel group Kyoei will pump $200 million into building a steel refining plant employing South East Asian latest steel coil rolling and electric arc furnace line in Phu My I Industrial Park in southern Ba Ria-Vung Tau province’s Tan Thanh district.

Construction will get underway by the end of this year and the plant will become up and running by 2013.

The project helped place Japan in the second behind Hong Kong among countries and territories investing in Vietnam in the year to November with $2.12 billion total investment.

Besides, it had contributed to directing foreign direct investment (FDI) flow from property in the past year to production and manufacturing sector in the first 11 months of 2011.

A Foreign Investment Agency report showed that processing industry and manufacturing were the most attractive to foreign investors with 382 newly registered projects worth $6.24 billion in total registered and supplemental capital, tantamount to 49.1 per cent of total FDI committed capital in the year to November 2011. Power production and distribution came second with total registered and supplemental capital of $2.53 billion, accounting for around 20 per cent.

In fact, many big projects outside the real estate sector got investment licences since early year. Among them were $2.25 billion build-operate-transfer Hai Duong thermopower project, over $1 billion First Solar Vietnam project, $400 million Viet Luan Tube Company Limited project and $323 million Vietnam Nippon Sheet Glass (NSG), a joint venture between UK’s Pilkington Group Limited and Vietnam Glass Industries Limited.

“Vietnam is not only a potential manufacturing base, but also offers a big consumer market. Hence, the country will continue to be a top target to foreign, including Japanese investors,” said Japan Business Association in Vietnam chairman Noriaki Shutoh.

Shutoh appreciated Vietnamese government efforts to ameliorate local investment climate saying that Japanese firms encountered fewer hurdles associated with power cuts and volatile exchange rates in doing business in Vietnam in the past year. Therefore, their business figures were more encouraging.

He, however, said a number of barriers still exist which could directly affect FDI inflows into Vietnam.

“Issues relevant to foreign currencies settlement with industrial zones’ and export processing zones’ businesses, land acquisitions, foreign employee recruitment and contract signing with replacement labourers needed to be further improved to benefit investors,” said Shutoh.

$2 billion spent on feed imports

Feed and raw material import turnover increased by 4 per cent in November to reach $160 million, according to the Ministry of Agriculture and Rural Development.

This figure, the ministry said, helped push the total feed import value in the first 11 months of the year to $2 billion, a surge of $100 million against the same period last year.

Doan Trong Ly, director of the Animal Production Processing and Import Export JSC, said that the figure excluded an additional 2 million tonnes of wheat and around 1 million tonnes of corn.

The Vietnam Feed Association attributed the increased export turnover to rising prices.

Association Chairman Le Ba Lich said that the price of raw materials used in feed production, of which the country still had to import 60 per cent, had increased significantly.

As a result, the price of domestic feed has remained high, he added.

Since the beginning of the year, Argentina , India and the United States have been the largest exporters to Vietnam .

Around 23.4 per cent of feed and raw materials came from Argentina while 21.6 per cent was imported from India and 10.5 per cent was sent from the United States .

Several gold bullion processors cease production

Even though the government’s new decree on the management of gold trading has yet to take effect, some gold bullion producers have temporarily halted their processing work.

The CEO of a major gold trader in Ho Chi Minh City told VnExpress that the State Bank of Vietnam used to allocate quotas for businesses to import gold material for processing bullion.

“But over the last few months only the Saigon Jewelry Co was allocated quotas,” she was quoted by the newswire as saying.

She added that the company had received documents from the central bank ordering it to stop producing gold bullion and await new regulations.

“We have put a halt to all gold bullion processing.”

A representative of Sacombank-SBJ said the company received a similar directive to cease production from the central bank.

He said Sacombank-SBJ has in fact been unable to produce gold bars under its brand name all year, since it was not allocated a quota on gold imports.

“We only acted as an outsourcing gold bullion processor for other banks,” he said.

Nguyen Thanh Truc, CEO of Agribank Jewelry Co, said his unit has also stopped making gold bullion and is waiting for new quota figures from the central bank.

According to a draft decree issued by the State Bank of Vietnam last month, only businesses with a minimum registered capital of VND500 billion ($24.3 million) and holding at least 25 per cent of the gold bullion producing market share in the last three years are licensed to produce gold bullion.

With such high requirements in place, Saigon Jewelry Co, the country’s largest gold trader, will be the only business eligible for processing gold bullion.

Last week, the central bank also announced that SJC gold will become a national asset and the company will come under direct management of the central bank.

Consequently, gold bullion of other brand names will still be eligible for circulation, but the processors have to stop making new bars.

Cao Thi Ngoc Dung, CEO of Phu Nhuan Jewelry Co (PNJ), said the suspended processing would not heavily damage her company.

Dung said that since PNJ’s machinery and equipment for processing gold bullion have been operating for a long time, they have nearly reached the complete depreciation.

“Moreover, the machinery is used not only to make gold bullion but also to process gold jewelries,” she said.

“So even when we are no longer allowed to produce gold bullion, financial damage will be minimal.”

However, the damage can be quite heavy for businesses that are relatively new to the gold bullion production sector, such as SBJ and ACB.

An executive of Sacombank-SBJ said the company has invested around VND30 billion on establishing gold bullion processing facilities.

“This investment will severely damage us financially if we have to stop making gold bars,” he said.

In an attempt to avoid similar damage, many gold bullion processors have called on the central bank to allow them to make use of their machinery to outsource gold bullion for SJC.

The CEOs of PNJ and SBJ, however, expressed their concerns that such proposal was not feasible, since it would be difficult for the central bank to closely monitor the SJC gold bullion outsourcing.

For example, the central bank may find it hard to verify whether the outsourcing companies will produce more bullion to sell in the black market, they said.

Thus, SBJ’s CEO suggested that the central bank buy the processors’ machinery to make gold bullion bars on its own.

“This will facilitate the central bank’s management on the quality and quantity of gold bullion while helping businesses reduce their damages,” he concluded.

Textile firms to sit on the fence

Vietnamese garment and textile firms will hold back on large-scale investment projects due to a lack of capital in 2012.

Le Tien Truong, deputy general director of Vinatex, said: “After one year of economic pressure due to lack of capital for big investment projects, until now the garment and textile sector has not yet found any source of capital to invest in 2012, especially in material development projects”.

According to Truong, Vietnamese garment and textile firms have aimed at major targets to continue to mobilise and gather capital for manufacturing operations, importing raw materials to service for manufacturing domestic goods and exporting.

Not only small- and medium-sized firms, the number of large firms with big capital such as Viet Thang and Phong Phu also are cautious for new projects.

In 2011, in order to meet export market demands, Vicotex only invested around VND60 billion ($2.8 million) in equipment and machinery to increase the quantity and quality products.

Vicotex general director Nguyen Duc Khiem said: “Due to capital shortages and high lending interest rates, firms are not interested in big investment projects.”

Bui The Kich, general director of Donagamex, said: “In 2011, the company established and put into operation the Dong Viet Phu Company specialised in manufacturing non-woven products for garment and textile sector. Total investment capital for new firm was not huge to serve the domestic market.”

Thai Nguyen Investment and Trading general director Nguyen Van Thoi said: “In the first phase, Phu Binh Garment and Textile factory invested by Thai Nguyen with total investment capital over VND200 billion ($961 million), but the company has only gained profit 80 per cent of total capital. Thus, although the company was operational from June, 2011, until now, the project has not yet finished its construction”.

In order to cope with capital shortage for the project, the company restructured debt by transferring equipment and machinery invested by short-term capital into leasing finance.

“Facing capital shortages, garment and textile firms want the government to support capital to carry out investment projects,” Nghi added.

Car buyers still in a spin

Car purchases are still beyond the payment capacity of most local consumers though import tariffs will fall from January 1, 2012.

Under the draft circular and car import tariffs the Ministry of Finance is putting for general comments before it will be applied towards all imported automobiles from World Trade Organization (WTO) and ASEAN member countries starting from January 1, 2012 complete-built unit (CBU) under 10-seat cars with cylinder capacity of under 2.5L will incur new import tariffs of 78 per cent instead of 82 per cent, while the tax rate for cars with over 2.5L cylinder capacity will be 74 instead of 77 per cent.

The 72 per cent import tariffs imposed on four-wheel drive automobiles with big cylinder capacity will be eased to 68 per cent. Tax rates remain uncharged for cars of over 10-seat and trucks with carrying capacity of over six tonnes to 18 tonnes as well as specialised passenger coaches used in airports at 70 and 5 per cent, respectively.

Imported component sets for locally assembled cars will be tax free or enjoy floor levels in import tariffs enacted by the National Assembly’s Standing Committee.

Honda Vietnam automobile section director Akira Makito assumed tax cuts would benefit consumers and bolster auto market development.

“Price factors will still be a major hurdle to personal car market growth in the country until 2018 when Vietnam will finalise its import tariff reduction programme within CEPT/AFTA framework if such high tax rates remain, besides various fee impositions,” according to a recent report on Vietnam’s auto industry development planning to 2020.

Reality shows that imported car stock by commercial firms has drained after Ministry of Industry and Trade’s Circular 20/2011/TT-BCT supplementing regulations on import car procedures came into force from late June 2011 which requires firms to present authorised import certificates by genuine manufacturers.

In fact, some commercial firms risked bringing Toyota and Lexus brand-new cars into Vietnam after Circular 20 became effective.

However, in October 2011 Japan-based Toyota Motor Corporation forwarded documents to competent Vietnamese agencies confirming that it only authorised Toyota Vietnam to import and sell Toyota brand cars and was yet to appoint any Vietnam-based dealer to import and sell Lexus brand cars including Toyota Vietnam.

The same method is applied by some foreign-backed car firms to avoid the flow of new cars imported into Vietnam via non-official channels. Industry insiders then assumed car prices would not go down remarkably in the coming period when only exclusive distributors ‘play the game’.

US$268.6 million port commissioned in BR-VT

Cai Mep International Terminal (CMIT) costing US$268.6 million came on stream in the southern province of Ba Ria-Vung Tau on Thursday, facilitating direct shipments between Vietnam and other parts of the world.

Equipped with five Super Post-Panamax Ship-To-Shore (STS) cranes, CMIT is the first deep-water container port in Vietnam to serve huge vessels of up to 160,000 DWT.

The CMIT, developed by Cai Mep International Terminal Joint-Stock Company, is operating direct international shipping between Vietnam and other countries in Asia, Europe and the Americas.

In March this year, when it was still under the second phase of construction, CMIT received the 131,260-DWT vessel CMA CGM Columba with the capacity of above 11,388 TEUs, the largest container vessel to have called at a Vietnamese port.

CMIT have to date welcomed 104 mother ships and loaded and unloaded 151,000 TEUs.

At the opening ceremony of CMIT, Martin Gaard Christiansen, CEO for the APM Terminals Asia Pacific Region, said the container ports around the Cai Mep area like CMIT were dependent much on supporting infrastructure such as roads and power. Therefore, Christiansen said, local and central authorities should coordinate with investors to develop the best infrastructure.

Danish Ambassador to Vietnam John Nielsen said at the ceremony that the construction of CMIT was evidence of the bilateral partnership in infrastructure development in Vietnam.

Ngo Thinh Duc, deputy minister of transport, said the opening of this deep-water container terminal would help reduce the shipping time of local products bound for the European Union and U.S. markets by 7-10 days, thus increasing their competitiveness on global markets.

Duc said his ministry would accelerate infrastructure development, including the expansion of National Highway 51 and the construction of the Bien Hoa-Vung Tau Expressway to connect the ports in the Cai Mep area.

Cai Mep International Terminal Joint-Stock Company was established on January 26, 2007 as a joint venture between Saigon New Port Corporation, Vietnam National Shipping Lines and APM Terminals of Denmark.
 
Turkish firms seek Vietnam goods

A delegation of 35 Turkish enterprises visited HCMC on Wednesday to secure goods supply from Vietnam.

Traditionally Turkish firms have imported products from China and Indonesia. However, a number of companies appear to be shifting towards Vietnamese products due to more competitive prices and better quality, according to Bullent Kosmaz, head of the Manisa Chamber of Commerce and Industry.

Turkish enterprises are seeking a huge range of items such as apparel, medicines, building materials and agricultural products, he added.

Turkey is Vietnam’s largest market in the Middle East and a gateway to the region and Europe, said Tran Quang Huy, an official from the Ministry of Industry and Trade. Vietnam’s annual export growth rate to Turkey has reached 40% over the past few years.

Exported goods to Turkey must meet quality standards set by the European Union (EU). At the moment Turkey is in negotiations to join the EU.

Vietnam earned over US$634 million in exports to Turkey from January to October with key items being cotton, phones and accessories, according to statistics from the General Customs Department.
 
Experts call for prudence in bank restructuring

When restructuring commercial banks, policy makers should practice prudence to avoid rattling the sector that is seen as the most important pillar of the economy, said economic experts.

Speaking at a seminar in Hanoi on Wednesday on restructuring of the banking, insurance and securities sectors, Nguyen Van Hieu at VietinBank Human Resource Development and Training School said too much emphasis on the bank restructuring program was unnecessary.

Instead an appropriate road map will be needed, he said, adding the public and the corporate sector should be well informed of the program so that they can get a full understanding of the need to get this done for the benefit of depositors.

Hieu proposed the central bank respect the principle that banks will be dissolved or merged on the voluntary and market price basis.

Under the current circumstances, he warned, foreign investors should not be allowed to increase their ownership in local banks, nor deemed as the savior of local banks, he said. And difficulties, if any, should be tackled internally before outside help, such as from international financial institutions, is sought.

Vu Dinh Anh at the Institute of Economics and Finance said the central bank should have a complete legal framework for bank restructuring in place.

The outstanding issues faced by the banking system are rising bad debts and falling liquidity, Anh said, so the central bank should adopt coping measures.

Expert Nguyen Thi Mui said that for those commercial banks with weak financial capability and low liquidity, the central bank should take bold measures to force them downsize their operations by selling their non-core business assets.

But for banks whose non-core business operations are good, the central bank should allow them to continue those operations.

A report at the seminar showed that as of end-August, bad debts in the entire banking system accounted for 3.21% of the total outstanding loans, at VND76 trillion.
 
State-owned outbound investment tightened

Outbound investment projects using state-owned capital will be supervised in a much stricter way if the draft decree to amend Decree 78/2006/ND-CP concerning outbound investment is approved.

A seminar to collect the ideas of enterprises regarding the draft decree was held on Tuesday in HCMC by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

Vu Van Chung, director of the Overseas Investment Division under FIA, said that outbound state-owned investment projects would be supervised regularly by both investors and state agencies.

As per the draft, any investors applying for outbound investment licenses are required to submit a legal document proving they are allowed to use state-owned funds to invest abroad. After these schemes are licensed, state agencies have the right to check if enterprises adhere to the prescribed investment steps including project formulation, assessment, approval, bidding and capital use.

The draft clarifies selecting contractors as well as purchasing commodities or choosing consulting services for these projects are in accordance with local bidding laws.

According to Do Nhat Hoang, head of FIA, the main point of the draft is that investors have to make reports on business performance. Those failing to fulfill this duty will be fined or have their investment licenses revoked or it will be announced publicly on the website of the Ministry of Planning and Investment.

The efficacy of Vietnamese-invested projects abroad sparked concerns among local economic experts 12 months ago, just after the ministry had reported that profits collected from such investment activities were modest while the country saw these investments devouring a huge amount of foreign currency.

As of September, US$1.93 billion had been disbursed by outbound investment projects while total pledged capital is over US$10 billion, with the state sector accounting for about 60%-70%, FIA said.