BCI Equinox opens in HCM City
     
The second annual BCI Equinox was held in HCM City last weekend with the participation of over 300 architects, interior designers and suppliers, including Ant Industries, Bosch, Hoàng Chương, HPL, Kingspan, KONE, Kotobuki, Molution, Saint-Gobain, SolakBK, Teka, UK Planet, Villafences, and Vinafloor.

BCI Equinox is a series of evening boutique exhibitions held across Asia, including in Singapore, the Philippines, Thailand, Viet Nam, Malaysia, and Indonesia to connect architects, interior designers and design specifiers with product suppliers.

Unlike larger trade shows and exhibitions, each event runs for two three hours and features a variety of exhibitors.

Drinks and canapés are provided throughout the event along with special entertainment shows are displayed.

Innovation vital for int’l integration
     
Productivity and innovation are considered leading factors for Viet Nam’s international integration, said Dang Huy Dong, deputy minister of Planning and Investment.

Dong told a workshop titled “Viet Nam economy’s innovation and productivity: Evidence from empirical analysis” held in Ha Noi last week that the two factors are required for the Fourth Industrial Revolution as well as joining global supply chains that take advantage of digitalisation in production.

Dang Duc Anh, head of the Analysis and Forecast Board under the ministry’s National Centre for Socio-economic Information and Forecast said Viet Nam had exploited traditional resources such as capital, natural resources and cheap labour for its economic development, exhausting such resources. The quality of growth therefore was not high and lacked sustainability.

“If the country continues this development trend, it would result in environmental pollution and a loss of competitiveness in comparison with the region and the world in the long-term,” Anh said.

However, Viet Nam’s productivity has long suffered a gap with the region. In another way, the quality of its human resources has not provided momentum for productivity growth. The rate of young labourers who were not given training and education is too high, becoming a barrier for the country’s productivity to increase.

Experts agreed that Viet Nam has a shortage of skilled labourers. As many as 11 out of 20 economic sectors which had positive growth rates in the 2006-16 period were not due to increasing productivity. Of which, four of 20 economic sectors saw declines in productivity in the period and another 7 had added value based on productivity less than the ideal level of 60 per cent.

They suggested that the Government should speed up renovation and restructuring of State-owned enterprises effectively and drastically. It was expected that economic output could rise by 10 per cent through increasing productivity.

Experts calculated that if SoEs’ productivity rises by 2 per cent, it would lead to a GDP increase of 1.14 per cent, industrial production of 2.26 per cent and export output of 1.15 per cent.

The rapid growth requires active participation of the private sector with small-and-medium sized enterprises (SMEs). Research also revealed that if SMEs promote the application of new technologies, productivity would increase by 25 per cent.

Anh also said the country’s growth rate had been relatively impressive and sustainable with positive export results. However, export and GDP growth depended on the FDI sector while local firms and their investment effectiveness had not significantly improved.

In addition, one of the main reasons for low productivity was education and training quality as well as human resources that did not meet requirements. Viet Nam risked moving backwards in terms of human resources and losing the advantage of its cheap labour.

He proposed that the Government and relevant agencies should focus on institutional and business environment improvement to serve businesses in combination with speeding up the privatisation of SoEs.

Especially, the Government should enhance start-up spirit and support the training of entrepreneurs to help them increase added value through new technologies.

Dr. John FitzGerald from the Economics Faculty of Trinity Dublin University said Viet Nam should concentrate on three factors including capital, science and technology and human resources for sustainable development and catching up with developed countries. Viet Nam could improve its productivity through developing science and technologies while resolving issues of economic structure, labour, working environment and administrative reform to increase productivity. 

Agro-fishery-forestry exports in 11 months exceed full year’s target

     
The agro, fishery and forestry export turnover reached US$33.14 billion during January-November.

This represented a rise of 13.8 per cent over the same period last year, according to the Ministry of Agriculture and Rural Development.

The export value exceeded the full year’s $32.1 billion revenue of 2016, to set a new high and on the way to reach $35-36 billion this year.

In November alone, the export revenue touched nearly $3 billion.

The export of agricultural products rose by 16 per cent in the 11-month period, fishery products by 18.3 per cent and forestry products by 10.4 per cent.

In the period, Viet Nam’s agro-fishery-forestry sector ran a trade surplus of $8 billion.

Many products posted strong increases in export revenues.

Rice export touched 5.49 million tonnes, worth $2.48 billion, increasing by 23.4 per cent and 24.2 per cent over the same period last year, respectively.

Fruit and vegetable export set a new high, reaching $3.16 billion in the 11-month period, up by 43.2 per cent.

Other agricultural products, which saw a significant increase in exports included rubber (up by 38.9 per cent to $2 billion revenue) and cashew (up by 23.2 per cent to $3.2 billion revenue).

Fishery exports also touched a new high in the January-November period, estimated at $7.57 billion in revenue, up by 18.3 per cent over the same period last year.

The United States, Japan, China and South Korea were the major importers of Vietnamese fishery products.

The export of wood and wooden products increased 10.5 per cent to reach $6.87 billion.

Only three products posted a drop in export values, including coffee, pepper and cassava, due to a decrease in export volume or in prices

Coffee export in the period fell by 22.5 per cent in volume to 1.27 million tonnes, but slightly rose by 3.8 per cent in value to $2.89 billion.

Due to a drop of 34.6 per cent in the average pepper export price, the export value of this product decreased by 21.7 per cent to $1.06 billion, despite a rise of 20.1 per cent in value to 203,000 tonnes. 

42 banks to provide guarantees for home purchases
     
The State Bank of Viet Nam (SBV) has released a list of 42 commercial banks, which are eligible to provide guarantees for future home purchases, according to Circular 13/2017.

The list includes domestic large-sized joint stock commercial banks such as Agribank, Vietcombank, Vietinbank and ABBank, as well as ACB and LienVietPostBank.

One-member limited liability banks such as ANZ Vietnam, Hong Leong Vietnam, HSBC Vietnam and Shinhan Vietnam, as well as Standard Chartered Vietnam, Woori Vietnam, CIMB Vietnam and UOB Viet Nam, in addition to Public Vietnam, Indovina and Vietnam - Russia Joint Venture Bank are also in the list.

Last month, the SBV issued Circular No 13/2017, which has taken effect since November 15, to amend Circular No 07/2015 on bank guarantees.

Under the new circular, commercial banks must issue guarantees for buyers of future property within 10 days from the date the real estate purchase contract is signed.

The guarantee means that banks would implement financial obligations to the buyers on behalf of the housing developers, in case they fail to hand over the property before the committed deadline without adequately refunding the advance.

The maximum guaranteed amount would be equal to the amount the developers are allowed to receive in advance from the buyers.

Banks eligible to provide a guarantee for home purchases must meet two requirements. Firstly, their establishment and operation licenses should have regulations on guarantees and secondly, banks should not be banned from providing guarantees in the period of being under special control. 

HDBank opens branch in Mekong Delta city
     
HDBank opened a new branch in My Tho city in the Cuu Long (Mekong) Delta province of Tien Giang on November 24, expanding its network to 240 offices.

On the occasion it donated VND80 million (US$3,500) for building houses for two poor local families.

The HCM City Development Joint Stock Commercial Bank, as it is formally known, has branches in most delta cities and provinces.

It offers preferential loans and other products for agriculture in the delta, where most people are farmers.

HDBank is one of the largest banks in the country with total assets of more than VND174 trillion (US$7.7 billion) as of last September. 

Flamingo Cat Ba Beach Resort set to work
     
The Flamingo Cat Ba Beach Resort project started on Saturday with an investment of VND3 trillion (US$132 million).

The resort with a view of Lan Ha Bay is located on Cat Co 1 and Cat Ca 2 beaches, Cat Ba Island, Hai Phong City.

A conference centre with 800-2,000 seats will be built in the resort. It will provide an entertainment area specialised for tourists, cinemas, children games area, cuisine area, swimming pools and a fitness centre.

The project follows the architecture of the Forest In The Sky project located at Flamingo Dai Lai Resort which received five Excellence in Design for Greater Efficiencies certifications for a green building.

Accordingly, sky villas in the project of Flamingo Cat Ba Beach Resort will provide customers accommodation close to nature.

Nguyen Van Tuan, chairman of the Viet Nam National Administration of Tourism, said the project will contribute to developing the local economy and tourism.

“Before tourists came to Cat Ba Island in the summer only,” said Tuan, “I expect that the project will lure tourists the site all year round.”

The project is scheduled to be completed in the end of 2019. 

Ecopark’s super-luxury precinct makes debut
     
Viet Hung Urban Development and Investment Joint Stock Company (Vihajico) on Thursday introduced its Ecopark Grand and Marina Arc.

This is the second phase of its Ecopark urban township in the northern province of Hung Yen.

Vihajico’s deputy general director, Nguyen Dung Minh, said it is the right time for his company to invest in ultra, high-end real estate, which will be perfect pieces in the 500-ha Ecopark complex, with a total investment of nearly US$10 billion.

The Ecopark Grand villa complex features the magnificent palm island, such as the one in Dubai, where all the villas are built atop the lush landscaped grounds by the world’s five leading companies.

Meanwhile, the Marina Arc will comprise 20 high-rise shophouses, with prizes from VND36 billion (US$1.31 million) for the 280sq.m ones and VND100 billion ($3.64 million) for the ones covering 630sq.m. 

Viettel affirms profit following property divestment
     
Military-run telecoms group Viettel has affirmed profit of some VNĐ50 billion (US$2.2 million) after its withdrawal of capital from the CT2 Trung Văn housing project.

The Government Inspectorate of Viet Nam, in the middle of May 2017, released a report saying Viettel suffered a loss of VNĐ40.6 billion ($1.78 million) when it divested from the project. 

However, Viettel last week said it had given its nod to the Ministry of National Defence for checks on its after-tax profit from selling apartments at the CT2 Trung Văn project. It would take responsibility for legality of the announced data under the current laws and regulations.

A representative from Viettel said the group reviewed all documents and accounting books relating to after-tax profit from the sale of apartments to its employees.

Specifically, it said it had adequate documents to confirm its profit of VNĐ49.48 billion collected from the projects.

In October, Viettel sent a report to the Government Inspectorate of Việt Nam with details of its profit. 

98% of Hà Nội enterprises pay taxes online

Ninety-eight per cent of total enterprises in Hà Nội have implemented online tax declaration and about 95.36 per cent of them have paid their taxes online.

This was revealed by the Hà Nội Department of Taxation. The figures have exceeded targets under Resolution 19, in reducing the time and cost for taxpayers and tax offices in declaring and paying tax.

The registration time of newly-established enterprises and the automatic granting of a tax code has reduced by 87.5 per cent, four hours less than earlier. That has helped enterprises and taxpayers save time and money.

The department has also coordinated with relevant departments in solving administrative procedures relating to land, and reducing the period of implementing the procedures from five days to three days, VTC reported.

Nguyễn Thế Mạnh, deputy director of the General Department of Taxation and director of the Hà Nội Taxation Department, said that over the past years, the taxation department of Hà Nội has focused on accelerating tax administrative reforms and ensuring transparency to create favourable conditions for businesses and taxpayers.

The Hà Nội Taxation Department has applied IT in stages of tax management, contributing to transparency and simplification of tax administrative procedures.

The biggest target of the Hà Nội Taxation Department is to create the best conditions for taxpayers to enjoy full tax incentives and comply with tax policies and law.

Only 6% of Becamex’s shares are booked before IPO

Only 158 investors have registered to buy more than 18.95 million shares, equivalent to just 6.1 per cent of shares offered, at the initial public offering of the Investment and Industrial Development Corporation (Becamex IDC).

The IPO is scheduled on December 1 on the HCM Stock Exchange.

Among them, only five are foreign institutions, booking the purchase of nearly 10.64 million shares, and 153 are domestic investors --149 individuals and four institutions -- who want to buy some 8.3 million shares, the HCM Stock Exchange announced.

The information is disappointing as the IPO was expected to draw special investors’ attention given its sizable share offering as well as the leading position of the company in the industry.

Early this month, Becamex said it would float over 311.2 million shares, equivalent to 23.63 per cent of its charter capital, through the IPO. The initial selling price is set at VNĐ31,000 (US$1.37) per share, valuing the company at VNĐ40.83 trillion ($1.8 billion).

The company is expected to collect at least VNĐ9.65 trillion from the sale (if all the shares are sold), making it the second largest IPO of a State-owned enterprise since Vietcombank’s IPO worth VNĐ10.5 trillion in December 2007.

Established in 1976, Becamex IDC is one of the largest real estate companies in Việt Nam, focusing on developing industrial, residential, urban and transport infrastructure. Under the equitisation plan, the State will retain 51 per cent of the company’s charter capital worth VNĐ13.17 trillion.

Government to encourage private sector-led growth

The Vietnamese Government is set to rein in the role of the State in the economy and encourage private sector-led growth.

This move is due to the country’s rising public debt and State-owned enterprises dominating the development and management of infrastructure projects.

The information is evaluated by the Asian Development Bank (ADB) in its Public-Private Partnership (PPP) Monitor report that tracks the development of the PPP business environment across ADB member countries and provides insights for governments on structuring a sound environment for PPPs.

This is the first edition of the report, which will be released annually.

It surveyed nine countries in the region, including Bangladesh, China, India and Indonesia, as well as Kazakhstan, Papua New Guinea, the Philippines, Thailand and Vietnam. It will be expanded to include additional countries in subsequent annual editions.

The report aims to benefit both policymakers and investors by providing in-depth information and data on the business environment for PPPs over time, enabling infrastructure developers to assess opportunities across countries and sectors. Annual updates to the report will flag important reforms that could attract or deter investors, allowing policymakers to monitor progress in the PPP environment.

In Vietnam, the PPP regulations (Decree 15) enacted in 2015 establish a legal framework aimed to attract more private investment toward the development of national infrastructure.

The PPP Monitor outlines the key advances in the PPP framework, which include enabling availability/performance-based payment schemes, removal of the previous limit on viability gap funding of 49 per cent of total investment cost, enabling wider scope of infrastructure projects to be procured as PPPs and establishing processes for PPP project identification, appraisal and approval.

From 1990 to 2016, the country closed 84 PPP projects amounting to 16.2 billion USD, with 79 percent of them in the energy sector. 

However, there are no PPP projects that have been implemented under this latest framework.

The PPP Monitor finds that current challenges include foreign lenders’ security issues, as the framework for credit enhancements and guarantee mechanisms remains unclear and the restrictions on mortgage over land-use rights in favor of foreign banks where land is conferred on a rent-free basis.

ADB President Takehiko Nakao said PPPs were crucial contributors to the development of countries in the Asia and Pacific region, but an enabling environment is required for these projects to succeed.

“This report will help both policymakers and investors make informed decisions, manage risk better and ensure a more stable environment for PPPs,” said Nakao.

The report reveals that India, the Philippines and Thailand have the most developed financial markets, which can provide longer-tenor loans (above 10 years) in local currency to support infrastructure. These markets also have a wide array of financing options, including project bond financing.

The report finds that China has the most PPP projects that reach financial close; but there is scope to scale up PPPs in the country by drawing on more private sector companies.

Among the key trends identified in this year’s report is that energy generation is one of the most successful sectors in developing PPP frameworks. Thermal and renewable power generation is the dominant sector for the majority of the countries surveyed in the PPP Monitor. 

The water sector is also a major area for PPP investment, with over 40 percent of PPP projects in the PRC in this sector.

Challenges remain for further PPP development, including enhanced development of financial facilities, further diversification of the investor base, managing the risk of fluctuating traffic in transport projects, developing a credible pipeline of PPP projects and expanding toward sectors beyond energy.

“There are many ways countries can overcome challenges to PPP development,” said Alexander N. Jett, PPP Specialist in the Office of Public Private Partnership.

He said among the solutions are greater use of credit enhancements to attract better financing terms, reducing restrictions on foreign ownership in PPP contracts and introducing annuity payment systems that are based on performance instead of traffic volume to mitigate traffic risk.

“Strengthening the institutional capacity to screen and prioritise projects can also help countries develop a credible pipeline of PPPs, while the development of sector-specific regulations for non-energy sectors would address concerns about key bankability issues, such as foreign exchange risk,” said Jett.    

Vietnam, Algeria step up agro-fishery cooperation

Vietnam is willing to assist Algeria in developing agriculture and aquatic cultivation, said Minister of Construction Pham Hong Ha, who is head of the Vietnamese sub-committee of the Vietnam-Algeria Inter-Governmental Committee.

Ha made the statement while meeting with Algerian Minister of Agriculture, Rural Development and Fisheries Abdelkader Bouazghi in Algiers city on November 27. The meeting was part of the 11th meeting of the Inter-Governmental Committee.

Vietnam always encourages Algerian businesses to boost farm produce exports to Vietnam and vice versa, Ha noticed, adding that the Southeast Asian nation is willing to discuss and ink new MoUs with Algeria to facilitate the import and export of each other’s agricultural products.

However, he said, both sides need to draw up specific roadmaps to finalise new commitments, creating favourable conditions for businesses of the two countries to boost trade collaboration.

For his part, Abdelkader Bouazghi stressed that Algeria wants to learn from Vietnam’s experience in agriculture and fishery sectors.

He said the two nations should facilitate their enterprises to cooperate in aquaculture projects.

Thanks to its intensive investment in agriculture, Algeria, previously an importer of farm produce, has exported some agricultural products like date and potato to Spain and France and olive to Italy, he highlighted, noting that an Algerian business is working with Vietnamese partners to ship date to the country.

Abdelkader Bouazghi suggested establishing working group to check legal frameworks which impede agricultural cooperation between the two countries, and to recommend ways to bolster trade ties in the coming time.     

Urbanisation jumps 10 per cent
     
The urbanisation rate in Viet Nam has grown from 30 per cent in 2007 to 40 per cent in 2017, according to Singapore-based United Morning Post.

In an article about Viet Nam’s economic reform and hosting of APEC Year 2017, the newspaper cited data demonstrating the country’s progress since the beginning of reforms in 1986.

Viet Nam’s growth rate was 2.79 per cent in 1986, soared to 7.36 per cent three years later and now consistently hovers around 7 per cent.

The paper said by hosting the APEC 2017 Economic Leaders’ Week in Da Nang, Viet Nam introduced a dynamic city to international friends.

Da Nang is a small image of Viet Nam, reflecting the achievements the country has obtained from reforms and economic integration in the past 10 years, it noted.

The article also pointed to a number of challenges facing ViEt Nam, such as uneven socio-economic development, outdated infrastructure, corruption, and inflation. In conclusion, it attributed the country’s robust growth to its progress in regional and global integration.

Since 1990, Viet Nam has become members of the Association of Southeast Asian Nations, the Asia-Pacific Economic Cooperation (APEC) and the World Trade Organisation (WTO). 

HCM City calls for Malaysian investment in Tay Bac urban area

An investment promotion event was held in Kuala Lumpur on November 22 to call for investment in Tay Bac urban area in Ho Chi Minh City.

Dinh Khac Huy, head of the project’s Management Board introduced the major features of the area to Malaysian firms and its plan to become a modern satellite urban area with full living, working and entertainment facilities.

Covering about 9,000 hectares spanning Cu Chi and Hoc Mon districts of Ho Chi Minh City, the area is designed for 450 residents. Currently, it needs investment in technical and social infrastructure, and housing development.

Huy said that by 2020, the city needs billions of USD to improve its infrastructure, a challenge for the city as the budget will only meet about 20 percent of the figure.

He called for investors to engage in infrastructure and housing projects in both Tay Bac urban area and Ho Chi Minh City in general.

He also vowed to create the best conditions for Malaysian firms to seek opportunities in the city, while calling for ideas from Malaysian businesses in building Tay Bac urban area.

Meanwhile, Vietnamese Ambassador to Malaysia Le Quy Quynh noted that Vietnam and Malaysia have enjoyed rapid growth of economic, trade and investment cooperation with two-way trade exceeding 10 billion USD in 2016. Malaysia is one of the leading foreign investors of Vietnam with many big firms operating in the country.

The diplomat said that the booming development of the real estate sector in Vietnam has opened up new opportunities for both domestic and foreign investors.

Ambassador Quynh pledged that the Vietnamese Embassy will back trade and investment activities of Vietnamese and Malaysian investors in each country.

Rusiah Mohamed from the Malaysia External Trade Development Corporation (MATRADE) lauded Vietnam’s efforts to promote investment in Malaysia, offering a good chance for local firms to access information to serve their business plans.

MATRADE will work closely with and support Vietnamese side to encourage Malaysian investment in not only real estate but other fields in Vietnam, she said.

At the event, Ho Chi Minh City authorities also answered questions from Malaysian firms.

VN aims for 3% agriculture growth

Việt Nam targets a GDP growth rate for agriculture at 3 per cent per year by 2020 following an agricultural restructure plan that has been approved by Prime Minister Nguyễn Xuân Phúc.

Under the plan, set during the 2017-20 period, the annual average income of farmers will increase at least 1.8 times by 2020, in comparison to that of 2015.

The average labour productivity is expected to expand 3.5 per cent per year and the rate of workers in agriculture who receive training is expected to rise to 22 per cent.

Fifty per cent of communes are hoped to become new rural areas, while 15,000 cooperatives and unions of agricultural cooperatives are estimated to be operational. The plan also targets to provide most residents in rural areas with access to hygienic water. 

The restructure plan will classify agricultural products into three main groups, including the group of key national products, the group of key provincial products and the group of local specialities.

The group of key national products includes pork, poultry meat and products that have an export turnover above US$1 billion such as rice, vegetables and fruits, rubber, cashew nuts, wood and fisheries.

The focus will be on reviewing related plans and strategies, building large-scale and concentrated production zones and applying advanced science and technology for this group of products.

The group of key provincial products will be selected based on market demand and advantages of each locality. Polices and measures will be developed to help expand scale and competitiveness for these products.

Local specialities will have specific geographic indications and will be developed together with the development of new-style rural areas.

In cultivation, the country will shift to growing crops adaptive to climate change and suited to each region, develop concentrated and large-scale production areas, adopt chain production for national key products and encourage the development of clean and organic agriculture. 

The plan also calls for more application of science and technology in the sector to create high-quality varieties, adopting intensive farming, reducing the use of pesticides, replacing ineffective rice cultivation land to grow other crops and promoting aquatic breeding. 

The country will also develop household livestock, organic and ecological animal husbandry, and value production chains, in addition to building brands, reorganising the slaughtering system to ensure food safety, hygiene and environmental protection, inspecting and controlling diseases effectively and tightening the examination of the use of veterinary drugs and additives in the field. The livestock industry aims for an annual production growth of 4.5-5 per cent.

 Meanwhile, the seafood sector will promote offshore fishing and invest in modernising processing equipment and storage on board to reduce losses, with a growth of 4.5-5 per cent per year expected.

Bến Tre ponders pomelos, rambutans

Representatives of farming co-ops and the Cultivation and Plant Protection Division under Bến Tre Department of Agriculture and Rural Development this week discussed measures for sustainable development of  green-skin pomelos and rambutans in the province at a seminar.

Bến Tre has more than 5,600ha under rambutan, mainly in the districts of Chợ Lách and Châu Thành. A fifth of the total area grows the fruit, and produces more than 107,000 tonnes a year.

Three rambutan processing firms have been set up in the province in the past few years, and recently Bến Tre rambutan were exported to China, the United States and Europe.

But the Châu Thành-headquartered Tropical Fruit Export Ltd. is the only firm to sign a contract to buy the fruit, the partner being a local co-operative.

Sơn Định Commune in Chợ Lách District has one farming co-operative and 17 co-operative teams growing the fruit over 500ha, but they have signed no agreements to sell their output.

According to Lý Tấn Phương, chairman of the Sơn Định Commune Farmers’ Association, it is difficult to sign sales contracts for Sơn Định rambutan because of price volatility. The prices vary from VNĐ5,000 – VNĐ6,000 per kilogramme at harvest time to VNĐ20,000-30,000 in other seasons.

Nguyễn Thị Hồng Thu, director of rambutan export company Chánh Thu Ltd., said no long-term contracts had been signed between farmers and buyers because prices changed greatly and the fruit could not be preserved for long.

With 27,700ha of fruit orchards, Bến Tre grows many iconic fruits of the Mekong Delta, including the green-skin pomelo.

It has over 7,200ha under this fruit, mainly in Bến Tre City and the districts of Châu Thành, Giồng Trôm and Mỏ Cày Bắc, and produces 57,000 tonnes a year. But only 35.4ha of orchards grow the fruit for export.

Đàm Văn Hưng, head of Hương Miền Tây Ltd., said the export of the famous Bến Tre green skin pomelo faced challenges because the small scale of production led to inconsistent quality.

Lâm Văn Lĩnh, deputy head of the Bến Tre Cultivation and Plant Protection Division, said green skin pomelo and rambutan were mainly consumed in the domestic market and their exports faced challenges due to buyers’ stringent requirements.

Green skin pomelo and rambutan are mainly consumed as fresh fruit with only a small proportion of pomelos being used to make juices, jams, wines and other kinds of foods. This is why their value has not been fully exploited yet, Lĩnh said.

Hưng said, “Collaboration (between growers and buyers) is a necessary condition for rambutan production and consumption.”

The huge demand for rambutan in the local market has not been met, he said.

Hương Miền Tây has signed contracts to buy nearly 1,238 tonnes of green skin pomelo a year on 277ha in Bến Tre Province.

It plans to establish a quality management team to help co-operatives develop a production process and quality standards to meet market needs.

It will sign purchase contracts with growers at market prices while demanding that they ensure clean standards and steady output.            

The province’s cultivation and plant protection division has co-ordinated with district authorities and other relevant agencies to establish green skin pomelo and rambutan co-operatives. In Bến Tre, there are now 109 co-operatives growing pomelo and 42 growing rambutans.

Sixteen contracts have been signed by processors to buy the pomelos, but farmers growing 13,500 tonnes of the fruit on nearly 500ha have yet to sign up.

Not a single contract has been signed with rambutan farmers, Hưng said.

According to Phan Thị Thu Sương, deputy director of the Department of Agriculture and Rural Development, only a few contracts have been signed between Bến Tre farmers and firms due to the small scale of farms and the inconsistent quality of the fruit.

Next year the department will ask the Bến Tre People’s Committee to estimate market demand for fruit and draw up production plans.

Vietnamese food, beverages introduced in Indonesia

Vietnamese products are being displayed to international importers and retailers at the Salon International d’almentation (SIAL) InterFood 2017 that is underway in Jakarta, Indonesia. 

Vietnamese businesses brought cashew nuts, pepper, rice, coffee, tea and dried dragon fruit to the fair, which lasts from November 22-25. 

Le Anh Tuan, from Hanoi Trade Corporation (Hapro), said SIAL Interfood offers a big opportunity for participating companies to access Indonesian and global markets. 

Dinh Thi Thu Hang, from Richy Food JSC, said her company aims to introduce competitive products at the fair and promote exports to markets in ASEAN, including Indonesia.

The annual Jakarta event is the largest international food and beverage fair in Southeast Asia. This year’s event brings together 1,100 booths of nearly 30 countries and territories around the world. 

Within the framework of the event, there will be workshops and exchanges between participating enterprises, along with product promotion programmes.

HCM City eyes stronger economic ties with Japanese prefecture

Chairman of the Ho Chi Minh City People’s Committee Nguyen Thanh Phong said his city wants to enhance cooperation with Japan’s Osaka prefecture, especially in economy, trade and investment, while receiving Chairman of the Osaka Chamber of Commerce and Industry Hiroshi Ozaki on November 22.

Phong highlighted flourishing Vietnam-Japan relations in different pheres, noting that recent visits by the two countries’ leaders illustrate their determination to bolster ties.

He expressed his belief that bilateral relations will make great strides in the near future, particularly in 2018 when the two sides will mark 45 years of diplomatic ties.

HCM City pledges to create optimal conditions for foreign businesses, including those from Osaka, to invest in priority fields such as high-tech waste treatment, renewable energy, health care, and pharmaceuticals, he added.

Phong also asked the Osaka Chamber of Commerce and Industry to connect enterprises of Kansai region, where the prefecture is located, and HCM City, step up locality-to-locality cooperation and implement signed agreements.

At the meeting, Ozaki said many Osaka companies are doing business in HCM City and other parts of Vietnam. Their success in HCM City is partly thanks to local authorities’ support, which has created a favourable investment and business environment.

Noting Osaka firms’ advantages, he said some of them have experiences in solving urban issues facing HCM City, including ensuring economic growth alongside environmental protection. They are ready to assist the southern hub of Vietnam to improve its manpower capacity and technology in pollution treatment, renewable energy, health care and pharmaceutical.

He promised that his chamber will hold business networking and investment promotion programmes to help foster cooperation between Osaka and HCM City, as well as between Japan and Vietnam.

Thanh Hoa, Japan discuss progress of Nghi Son refinery project

Central Thanh Hoa province will put more focus on solving problems for Nghi Son Oil Refinery project to soon put it into use, said Secretary of the provincial Party Committee Trinh Van Chien on November 21.

Chien made the statement while meeting with Yota Ona, Director-General of the Natural Resources and Fuel Department of Japan’s Ministry of Economy, Trade and Industry (METI) to discuss the construction progress of Vietnam’s largest refinery and petrochemical complex.

The complex is expected to play a significant role in the province’s economic development as, once in operation, it is set to contribute about 30 trillion VND (over 1.32 billion USD) to the local budget annually, Chien told his guest.

The secretary urged Japanese contractors to fast-track the project, stressing the need to also build a lake for treatment of effluent waters from refining to prevent pollution.

He also asked Ono to introduce investment opportunities in Thanh Hoa to more Japanese investors with an emphasis on the fields of industry, seaport, transportation, and mining.

The Japanese official, for his part, asked the provincial government to continue providing favourable conditions for the project and support Japanese investors in the province.

The 9.2-billion-USD Nghi Son Refinery will be the second oil refinery in Vietnam, located in Tinh Gia district of Thanh Hoa, about 200 km south of Hanoi. Construction began in October 2013 and refinery operations are slated for the last quarter of 2017. 

The complex is designed to refine about 10 million tonnes of crude oil per year. It received the first batch of crude oil from Kuwait in August, 2017.

Cao Bang, Chinese entrepreneurs to strengthen cooperation

Young entrepreneurs of Cao Bang province and Chongzuo city of China’s Guangxi province have agreed to cooperate in farm produce production and sales, tourism and transport.

The deal was reached at a meeting in the Vietnamese northern mountainous province on November 21 between the provincial Ho Chi Minh Communist Youth Union and a youth and entrepreneur delegation from Chongzuo.

Tang Yu Ling, deputy head of the Standing Committee of the Chongzuo municipal People's Congress, lauded the two sides’ cooperation prospects.

Vietnam is Guangxi’s largest trade partner and accounts for more than 50 percent of the province’s import-export volume.

Trade turnover between Guangxi and Cao Bang exceeded 12 billion USD in the first nine months of this year, up 20 percent year-on-year.

As Guangxi has potential to develop tourism and hi-tech agriculture, it wants to intensify collaboration with Cao Bang in these fields, she added.

APEC 2017: Singapore press hails Vietnam’s economic reform

The urbanisation rate in Vietnam grew rapidly in the past decade from 30 percent in 2007 to 40 percent in 2017, according to Singapore-based United Morning Post.

In an article about Vietnam’s economic reform and hosting of APEC Year 2017, the newspaper cited data demonstrating the country’s progress since the beginning of reforms in 1986. Vietnam’s growth rate was 2.79 percent in 1986, soared to 7.36 percent three years later and now consistently hovers around 7 percent.  

The paper said by hosting the APEC 2017 Economic Leaders’ Week in Da Nang, Vietnam introduced to international friends a dynamic and vibrant city. Da Nang is a small image of Vietnam, reflecting the achievements the country has obtained from reforms and economic integration in the past ten years, it noted.

The article also pointed to a number of challenges facing Vietnam, such as uneven socio-economic development, outdated infrastructure, corruption, and inflation.

In conclusion, it attributed the country’s robust growth to its progress in regional and global integration. Since 1990, Vietnam has become members of the Association of Southeast Asian Nations, the Asia-Pacific Economic Cooperation (APEC) and the World Trade Organisation (WTO).

Workshop talks co-management of aquatic resource protection

Regulations on co-management of aquatic resource protection and management of marine protected areas in Vietnam were discussed at a workshop in Hanoi on November 22.

The Directorate of Fisheries at the Ministry of Agriculture and Rural Development and the Centre for Marinelife Conservation and Community Development (MCD) held a national consultation workshop discussing regulations on co-management of aquatic resource protection and management of marine protected areas in reference to the revised Law on Fisheries that was adopted by the National Assembly on November 21.

The workshop aimed to collect feedback from attendees to develop guidelines for the enforcement of the law and enhance information sharing and participation of stakeholders in the matter, said deputy head of the Directorate of Fisheries Tran Dinh Luan

This is the first time the concept of “co-management” has been regulated in the Law on Fisheries, he noted, adding that it is intended to encourage community participation in management of aquatic resource protection.

MCD Director Nguyen Thu Hue said she expects the workshop will be a good start for the consultation process to translate the law into reality. The process needs to be promoted in a consistent fashion with the participation of all stakeholders, she noted.

The workshop saw representatives from cities and provinces sharing their experience and giving ideas for drafting guidelines for co-management in protecting and developing aquatic resources. The delegates also discussed amendments made in the revised regulations on management of marine protected areas in Vietnam.

Sakura Color Products Vietnam launches factory in Binh Duong

Sakura Color Products Vietnam inaugurated its factory producing crayons and pens in the southern province of Binh Duong on November 22.

The factory has a total investment of over 800 million JPY (7.14 million USD), funded by Sakura Color Products Vietnam, a subsidiary of Japanese Sakura Group. It sits on 1.5 hectares in the Vietnam – Singapore Industrial Park II.

The company is expected to earn 100 million JPY (862,600 USD) in 2018, and 700 million JPY (6.25 million USD) in 2021.

The first batch of crayons and pens is expected to be shipped to Japan and regional nations in February, 2018.

Yamashita Takanori, Director of Sakura Color Products Vietnam highlighted Vietnam’s favourable conditions for Japanese investors, saying that it is a member of the World Trade Organisation and has numerous trade agreements with Japan. He suggested Vietnam improve infrastructure.

Vietnamese labourers are young and industrious, he said, but, pointing to the fact that the rate of workers quitting jobs before their contracts expire is high.

Tran Thanh Liem, Chairman of the provincial People’s Committee hailed the company’s investment, expressing his belief that it will expand operation in the locality.

He hoped that it will encourage more investors, particularly those from Japan to run business in Binh Duong.

Liem pledged to offer favourable conditions for investors in general and the company in particular to operate effectively.

Workshop talks co-management of aquatic resource protection

Regulations on co-management of aquatic resource protection and management of marine protected areas in Vietnam were discussed at a workshop in Hanoi on November 22.

The Directorate of Fisheries at the Ministry of Agriculture and Rural Development and the Centre for Marinelife Conservation and Community Development (MCD) held a national consultation workshop discussing regulations on co-management of aquatic resource protection and management of marine protected areas in reference to the revised Law on Fisheries that was adopted by the National Assembly on November 21.

The workshop aimed to collect feedback from attendees to develop guidelines for the enforcement of the law and enhance information sharing and participation of stakeholders in the matter, said deputy head of the Directorate of Fisheries Tran Dinh Luan

This is the first time the concept of “co-management” has been regulated in the Law on Fisheries, he noted, adding that it is intended to encourage community participation in management of aquatic resource protection.

MCD Director Nguyen Thu Hue said she expects the workshop will be a good start for the consultation process to translate the law into reality. The process needs to be promoted in a consistent fashion with the participation of all stakeholders, she noted.

The workshop saw representatives from cities and provinces sharing their experience and giving ideas for drafting guidelines for co-management in protecting and developing aquatic resources. The delegates also discussed amendments made in the revised regulations on management of marine protected areas in Vietnam.

Use of Industry 4.0 technologies in aquaculture discussed

A conference took place in the Mekong Delta city of Can Tho on November 22 to discuss the application of Industry 4.0 and advanced technologies in aquaculture in Vietnam.

The event was held by the management board of the EU-funded “Sustainable and Equitable Shrimp Production and Value Chain Development” project in partnership with the World Wildlife Fund (WWF), bringing together policy makers and nearly 400 farmers and businesses in the aquaculture and seafood processing industries across the Mekong Delta.

During the conference, businesses and researchers shared their experience in use of Industry 4.0 technologies in aquaculture and advanced techniques and methods for safe and sustainable shrimp farming; and proposed solutions for technical and environment-related challenges in shrimp farming and potential policies for the industry’s development.

Use of the Industry 4.0 technologies has significantly increased in agriculture and aquaculture in countries like Israel, Japan, the Republic of Korea, Taiwan (China), Thailand and American and European countries, said Dinh Xuan Lap, Deputy Director of the International Collaborating Centre for Aquaculture and Fisheries Sustainability.

They allow farmers to create more added values, prove origin of the products, reduce risks and cost in production and become more adaptive to changes in weather and environment, he added.

Aquaculture has contributed to over 60 percent of the country’s fishery outputs and created jobs for more than one million people in Vietnam.

Vietnam, China augment cooperation along economic corridor

A conference opened in Hai Phong city on November 22 with a view to promoting cooperation along the economic corridor of Vietnam’s Lao Cai province, Hanoi, Hai Phong city and Quang Ninh province and China’s Yunnan province.

The corridor’s 8th cooperation conference attracted more than 200 delegates, including representatives of the Consulate General of Vietnam in Yunnan’s Kunming city, the Vietnamese Foreign Ministry, the Chinese Embassy in Vietnam, authorities of the Vietnamese localities, and many businesses.

Chairman of the Hai Phong municipal People’s Committee Nguyen Van Tung said the conference is an initiative that aims to create prerequisites for diverse friendly exchanges and cooperation activities, especially in economy, between Vietnamese and Chinese localities.

He added the three-day event focuses on transport connection and cooperation in logistics development; trade and investment cooperation; tourism, educational and health care cooperation; and cooperation in currency and insurance works.

It is also hoped to witness the signing of cooperation documents on finance-currency, e-commerce and tourism between Vietnamese and Chinese companies. Notably, Hai Phong and Yunnan expect to reach consensus on an air route linking the Vietnamese city with Kunming and an express train connecting Hai Phong, Hanoi, Lao Cai and Kunming.

Chairman Tung said these are the most practical actions to realise the outcomes of the recent talks between General Secretary of the Communist Party of Vietnam Nguyen Phu Trong and General Secretary of the Communist Party of China and President of China Xi Jinping.

Enhanced transport connectivity is among the outcomes recorded since the economic corridor’s 7th cooperation conference in 2015. Hanoi-Hai Phong expressway and Tan Vu-Lach Huyen highway and sea-crossing bridge have been put into operation. These two transport projects are also connected to Hanoi-Lao Cai expressway, forming an expressway route from the mountainous province of Lao Cai to Hai Phong port.

When the construction of Hai Phong-Ha Long expressway completes in 2018, it will create an expressway network from Kunming to Ha Long, thus facilitating goods transport and tourism.

The Vietnamese Ministry of Transport is planning a rail route traversing Lao Cai, Hanoi and Hai Phong. It is also negotiating with China about connecting Lao Cai and Hekou North railway stations.

In terms of trade and investment cooperation, Lao Cai and Yunnan provinces have rotationally hosted the Vietnam-China border trade fairs. Businesses of the Vietnamese localities have also taken part in international fairs in China such as the Vietnam-China border trade fair, the China-South Asia Expo, and the Kunming Import & Export Commodities Fair.

Universities and educational establishments of Lao Cai, Hai Phong and Yunnan have maintained exchanges. Meanwhile, the provinces and cities along the corridors have also coordinated in promoting tourism. 

Eight of the 11 commercial banks of Lao Cai have inked agreements on cross-border trade payment with six commercial banks and credit cooperatives of Yunnan. Their cooperation has strongly supported businesses with import and export activities via Lao Cai International Border Gate, the conference heard.