Vietnam Airlines wants to buy domestic terminal at Noi Bai airport

Vietnam Airlines wants to buy the domestic passenger terminal at Hanoi's Noi Bai International Airport from the Airports Corporation of Vietnam (ACV), which manages and operates dozens of commercial aviation hubs across the country.

Its proposal to the Ministry of Transport effectively puts Vietnam Airlines on a collision course with low-cost carrier VietJet Air, which also wants to buy Terminal 1 at Noi Bai, and the international T2, and has secured a pilot franchise over Lobby E at T1 while authorities assess its plans to improve efficiency.

Vietnam Airlines chairman Pham Viet Thanh said, "There has been a popular trend to privatise major terminals at international airports around the world to faciliate the development of major airlines firms. This trend is really suitable for the Vietnamese Ministry of Transport’s policies to call for private investment in airport infrastructure,”

T1 serves domestic passengers, with T2 handling international flights.

Transport Minister Dinh La Thang has asked the ACV for a privatisation plan to mobilise capital for constuction of the planned Long Thanh International Airport.

“We’ll work out regulations to prevent possible monopoly,” Thang said.

Some 36 domestic and foreign airlines operate an average 340 flights a day at the Noi Bai International Airport.

Vinpearl proposes 54-hole golf course in Ha Noi

Vinpearl has proposed to construct a 54-hole golf course near the Duong river in the Gia Lam and Long Bien districts of Ha Noi.

A view of Vinpearl's golf course in Hon Tre Island of Nha Trang province. - Photo vinpearlgolf.com

About VND1,368 billion (US$63.6 million) will be invested in the two-phase project, which will be built between 2016 and 2020.

The golf course will spread over 291 hectares and will include multi-purpose buildings, such as swimming pools, a gymnasium and a medical centre.

On February 25, the Ha Noi's People Committee had asked the Ministry of Agriculture and Rural Development (MARD) to study and approve the proposal.

According to news online baodautu.vn, MARD has gathered the opinions of experts on the proposal, which currently seem to vary.

Businesses begin stockpiling rice in Mekong Delta

Businesses have begun purchasing one million tons of winter spring rice in the Mekong Delta on March 1 when the Prime Minister's rice stockpiling decision took effect.

The Government has assisted businesses with 100 percent of bank loan interest rate in four months to buy rice under the program from March 1 until April 15.

Rice prices were in down trend near the lunar New Year Festival but have a bit increased recently owning to the program.

Specifically, a kilogram of fresh rice fetches VND4,200-4,600 a kilogram, up VND200-300 over it before Tet. Traders have boosted purchase in Can Tho, Hau Giang, Dong Thap, and Vinh Long for the last few days.

Farmer Ngo Van Kha from Vi Thanh District, Hau Giang province said that the new prices are acceptable.

The busiest purchase is along the 40 kilometer road linking Can Tho and Vi Thanh, where nearly 100 combined harvesters have continuously operated in fields.

Leaders from Can Tho, Dong Thap, An Giang, Tien Giang, Long An and Can Tho say that this year the rice stockpiling program has been launched timely as farmers are entering peak harvest season.

Vietnam Food Association (VFA) has allocated rice volume for businesses to buy in each province. The largest purchase will be 250,000 tons in An Giang, followed by Can Tho with 175,000 tons and Bac Lieu with 8,000 tons. The lowest volume is in Ca Mau with 2,400 tons.

2015 is the sixth year in a row VFA carries out the rice stockpiling program for the yearly largest winter spring crop in the Mekong Delta.

The program is a Government's intervention measure in the rice market to prevent a price drop during peak harvest time and ensure farmers' profit, Deputy Minister of Agriculture and Rural Development Vu Van Tam said at a meeting on the program's implementation in the delta yesterday.

In addition to the program, the Southern Food Corporation has won a bid to export 300,000 tons of rice to the Philippines, creating a better tendency in the rice market, he added.

However, Deputy Chairman of VFA Huynh The Nang said that tendency would not prolong because the Mekong Delta would have up to five million tons of commercial rice by the second quarter. The number includes iventory rice from last year and newly harvested rice.

KLF announces plans to raise charter capital

KLF Investment (KLF) plans to increase its charter capital from VND1.52 trillion (US$71.4 million) to more than VND3.6 trillion ($169 million) through share issuance and dividend payout.

In 2014, KLF achieved a profit after taxes of VND91.37 billion ($4.3 million), a soaring 164.6 per cent compared to 2013. The company expects its profits will continue to grow, reaching VND156 billion ($7.3 million) this year.

The company's stock dropped 2.8 per cent yesterday to settle at VND10,500 ($0.49) despite the company's recent news.

Former State official's packaging firm listed

NHP Production Import-Export will list 12.5 million shares coded as NHP on the Ha Noi Stock Exchange, the exchange was approved but no detailed timing was publicised.

The one-year-old packaging and plastic resin company is managed by senior economist Le Xuan Nghia, former vice president of the National Financial Supervisory Commission, who owns 22.4 per cent of the company's shares. Two other large shareholders are Phu Thanh Garment JSC (16 per cent) and its 25-year-old chief executive Nguyen Thi Mai Huong (6 per cent).

NHP's revenue and profit after taxes reached VND69.1 billion (US$3.2 million) in 2014. It currently has a 25 per cent stake in Phu Vinh Hung Textile Co Ltd and 22.22 per cent in the plastic resin firm, Delex Vietnam.

LGC acquires half of Hien An Binh Bridge and Road Co.

CII Bridges and Roads Investment (LGC) announced on February 24 that it has acquired a 51 per cent stake in the VND270 billion (US$12.7 million) Hien An Binh Bridge and Road Company.

LGC initially owned an 18 per cent stake in the company.

LGC also disclosed last year's profit, a booming VND214 billion ($10 million) compared to VND4 billion ($187,800) in 2013.

LGC shares closed yesterday's session unchanged at VND34,000 ($1.6).

Lenders post record asset values

The total assets of the domestic credit institution system were worth nearly VND6,520 trillion (US$310.48 billion) at the end of last year, a 12.2 per cent increase over 2013.

The value of the assets was a record high, news website ttvn.vn reported, citing the latest data from the State Bank of Viet Nam (SBV).

In 2014, State-run banks' assets grew 14.82 per cent year-on-year to touch nearly VND2,880 trillion ($137.14 billion), while the value of the assets of joint-stock banks rose by 13.1 per cent year-on-year to reach roughly VND2.78 quadrillion ($132.38 billion). Joint-venture and foreign banks saw no changes in their asset values.

The combined ownership capital of credit institutions hit about VND496.57 trillion ($23.65 billion), a year-on-year increase of 4.36 per cent. Their charter capital totalled VND435.65 trillion ($20.74 billion), up 3.29 per cent year-on-year.

These capital growth rates were significantly lower than those recorded in previous years. The growth of ownership capital and charter capital of credit institutions was nearly nine per cent and 11.2 per cent respectively in 2012, and 9.6 per cent and 8.1 per cent respectively in 2013.

Market observers said that while a bank's capital is very important in assuring depositors' interests in case of risks, the slowing down of capital expansion last year showed that lenders were facing difficulties in luring investment capital.

Many banks reportedly failed to implement plans to increase capital during 2014. At the beginning of this month, SBV announced that it will take over the Viet Nam Construction Bank, which is being restructured, to restore its payment capacity.

The capital adequacy ratio (CAR) of the credit institution system reached 12.75 per cent at the end of last year, significantly higher than the expected level of nine per cent, according to the report.

The CAR was 9.4 per cent for State-run banks, and 12.07 per cent for joint-stock banks.

Thua Thien-Hue plans to lure industrial zone funds

This central province plans to attract investments worth VND2.5 to VND3 trillion (US$119.05 to $142.86 million) and generate jobs for 1,000 to 1,500 new workers this year.

Provincial People's Committee Vice Chairman Phan Ngoc Tho said local authorities will hand over cleared sites in industrial zones (IZs) to investors, while considering this a priority in luring investments here during 2015.

Further, the province will concentrate on the development of infrastructure, including traffic projects, electricity and water, along with waste treatment and fire prevention systems. It will also support investors in training the labour force.

According to the provincial IZs management board, the IZs have attracted 92 investment projects, with a total registered capital of some VND19.59 trillion ($932.86 million).

About 38 per cent of this amount, or VND7.40 trillion ($352.38 million), have been disbursed, including VND3.43 trillion ($163.33 million) by foreign direct investment (FDI) enterprises.

Last year, the IZs generated revenues valued at VND13.03 trillion ($620.48 million), up 18 per cent over the previous year, with the total number workers of nearly 17,100.

Thua Thien-Hue has four IZs, including the 185ha Phu Bai zone, which has been built on by 28 companies and will be expanded with an additional area of some 118ha.

They also comprise the Tu Ha and Phong Thu parks, each covering an area of 100ha. Just the Chan May-Lang Co economic zone has created jobs for about 6,000 labourers, and is requiring up to 24,700 workers this year, and 70,000 by 2020.

Tho said accelerating vocational training to assure the availability of skilled workers is necessary for a variety of sectors, including agriculture, forestry and aquaculture. He also mentioned fields such as handicrafts and mechanical goods production, as well as food processing.

FDI inflow declines but disbursement increases

Total foreign direct investment (FDI) in Viet Nam reached nearly US$1.2 billion in the first two months of this year, equivalent to just 77.5 per cent of that in the same period last year.

According to the Foreign Investment Agency's report, disbursed capital in the period increased by 7.1 per cent against last year's same period to reach $1.2 billion.

Further, during this period, 148 new FDI projects were licensed, with a combined registered capital of $712.29 million, while 60 existing projects increased their registered capital, being valued at $480.5 million.

FDI was directed into 13 sectors, in which processing and manufacturing remained the most attractive industry, drawing $952 million into 65 new FDI projects and 40 existing projects.

Meanwhile, real estate came in second, attracting $111.43 million in FDI during the period, or 9.3 per cent of the total FDI into the country, followed by retail and repairing services, with $71.22 million.

British Virgin Islands, with $351.39 million in capital, led 28 countries and territories injecting capital into Viet Nam, and accounted for 29.5 per cent, followed by the Republic of Korea and Hong Kong.

HCM City was the most attractive destination for FDI among 23 provinces and cities receiving FDI in the first two months of this year, with a FDI inflow of $497.9 million into the southern hub, accounting for 41.7 per cent.

Also, northern Hai Phong Province attracted $213.86 million in FDI, or 17.9 per cent, ranking the second most attractive destination, as the southern Binh Duong Province ranked third with $134.04 million FDI.

Of note, the FDI sector ran a trade surplus of $2.03 billion in the period, statistics showed.

Big year likely for VN textile, garment exports

Textile and garment exports are set for a boom this year, according to the Viet Nam Industrial and Trade Information Centre (VITIC), a Ministry of Industry and Trade agency.

In January exports were worth over US$1.9 billion, marginally up from last year, but many companies in the textile and garment industry have received orders to be executed in the first and second quarters.

The US topped the list of importers, buying textiles and apparel worth nearly $926.7 million, or nearly half of Viet Nam's total exports. Japan and South Korea also bought more than $100 million worth of products.

The full year's exports to the US are expected to top $11 billion, a year-on-year increase of 13 per cent.

Japanese firms' increasing investment in supporting industries in Viet Nam has created favourable conditions for the textile and garment industry, VITIC said.

Exports to Japan are expected to rise by 9 per cent this year to $2.9 billion.

VITIC said once a free trade agreement with the EU is wrapped up, exports of textiles and garments to that market would begin to rise, reaching $4 billion this year.

The Viet Nam National Textile and Garment Group (Vinatex) plans to invest VND9.4 trillion ($441.3 million) by 2017 in 59 textile, dyeing, garment and infrastructure projects, according to the corporation.

They include 15 fibre production projects, 18 textile and dyeing projects,18 garment projects and eight infrastructure projects.

Under the plan, Vinatex will disburse VND2.425 trillion ($113.85 million) to develop these projects this year, with VND805 billion ($37.8 million) going to fibre projects, VND713 billion ($33.5 million) to textile anddyeing projects, VND726 billion ($34.1 million) to garment projects, and VND181 billion ($8.5 million) to infrastructure in industrial zones for the textile and garment industry, reported the Dau tu (Vietnam Investment Review) newspaper.

With the investment, Vinatex expects to increase this year its production capacity to 6,000 tonnes of fibre, six million metres of dyed cloth, two million vests and blazers and four million trousers, as well as one million shirts and two million knitwear products.

Vinatex is currently considered to have the largest scale in production in the textile and garment industry, with 100 member companies, and holds 15 per cent of the total national textile and garment export value.

However, the member companies of Vinatex still face difficulties in investment in sub-material production, textile and dyeing projects.

Vinatex General Director Le Tien Truong said that the member companies don't have large investment capital, presenting a major challenge for local textile and garment firms in increasing the localisation rate.

The Phong Phu Joint Stock Corporation is a member of Vinatex that has the largest capital amount of VND700 billion ($32.86 million), while other large member companies have lesser capital, such as Viet Tien with VND200 billion ($9.4 million), Garment 10 with VND100 billion (4.7 million), and Nha Be with VND150 billion ($7.05 million).

The large garment companies could not invest in full supply chains, especially regarding the production of materials and sub-materials for textile and garments, to receive export orders as original design manufacturers (ODM), Truong said.

Vinatex has equitised its operations from January 1 this year, he added, so the group will promote management, investment and market and staff development.

The parent company will also take on the role of a direct investor to increase production capacity, especially self-reliance in material production, in a move to reduce dependence on imports, rather than manage State-owned capital at its member companies, as it did before equitisation.

The group has set a target for its parent company to earn VND900 billion ($42.25 million) in revenue and VND288.4 billion ($13.54 million) in after-tax profit in 2015; VND2.3 trillion (107.98 million) and VND342.3 billion ($16 million) in 2016; and VND3.26 trillion ($152.8 million) and VND405.9 billion ($19 million) in 2017 respectively.

Clean up your act, Ha Noi tells investors

The Ha Noi Department of Construction has set April 30 as the deadline for investors to submit reports on the implementation of residential projects, of particular concern are waste water treatment stations.

According to Le Duc Duc, director of the Ha Noi Department of Construction, although the city has over 150 residential areas and thousands of high-rise residential blocks, many of them don't have waste water treatment facilities or discharge untreated waste water into to city's sewage system.

One of the cited reasons for the phenomenon is that investors don't want to put money into non-profit areas of their projects, Duc said.

No strict regulations for punishment have yet been drafted to encourage, or scare, investors into executing their projects according to their submitted and approved plans, he said.

The Tin Tuc (News) newspaper recently reported that Nam Thang Long-Ciputra, generally regarded as a model urban area, lacks a sewage treatment facility.

Other urban areas in Ha Noi like Yen Hoa, Van Khe and My Dinh haven't put into effect their waste water treatment systems despite being fined for polluting the environment.

An official from Song Da Thang Long Joint Stock Company, an investor in the Van Khe urban area, said the framework for a waste water treatment zone has been finished. However, he added, it hasn't been put into operation because machinery and technology costs are too expensive.

The head of the Ministry of Construction's Department of Urban Development, Do Viet Chien, said the mass development of urban areas in the past were spontaneous and was not planned properly. As a result, these urban areas lack major infrastructure needed to serve residents and prevent environmental pollution.

Lack of regulation of urban area development as well as redundancy and overlap in legal documents confuse both competent agencies and investors, Chien said.

Investors also focus on the number and size of urban areas but don't care about sustainable development and environment-friendly factors, he said.

Chien said ministries and local authorities should more closely monitor the development process of urban areas and settle misdoings as soon as possible to ensure that projects are compatible with existing infrastructure and other ongoing projects.

Dao Ngoc Nghiem, former director of the Ha Noi Department of Planning and Architecture, said urban areas should be strictly classified. For example, he explained, it's not necessary for a small scale residential area to build a large waste water station.

Pham Sy Liem, vice president of the Viet Nam Construction Association, in turn, blamed authorities' loose management for the lack of sewage treatment facilities in urban areas.

Footwear export to the US soars

Viet Nam became the second largest footwear exporter to the US market last year after China, accounting for 13.8 per cent of the US market share.

The figure was released by the US Customs recently, according to the Viet Nam Leather and Footwear Association (Lefaso).

Viet Nam exported $3.55 billion worth of footwear last year, up 22.4 per cent from 2013 and 119 per cent from 2010.

The export value of Vietnamese footwear sent to the United States registered an average growth rate of 30 per cent for the 2010 to 2014 period.

The total footwear import value for the United States touched US$25.74 billion last year, up 4.5 per cent year-on-year.

China remained the biggest footwear exporter to the United States last year at $16.9 billion, making up for 65.6 per cent of the market share.

Lefaso attributed the rise in Viet Nam's footwear exports during the recent years to higher investment through foreign direct investment (FDI) by enterprises tapping the opportunities offered by the country signing Free trade Agreements (FTAs) with the European Union and South Korea, and entering the Trans-Pacific Partnership (TPP) with 11 other countries, including the United States, Japan and Canada.

According to Lefaso, the sector's competitive capacity was also enhanced by an improvement in technology and equipment. The association also forecast that the country's footwear export value will surpass $12 billion by 2015 and will continue to grow going forward.

According to Viet Nam's General Customs Department, last year, the total export value of the sector was pegged at $10.22 billion, showing a year-on-year surge of 21.6 per cent, and accounting for 6.8 per cent of the total export value of the country.

Of this figure, the export value of FDI businesses is estimated at $7.93 billion, accounting for 77 per cent of the country's footwear export value.

AIA VN launches i-service to boost customer care

AIA Vietnam has introduced an application to improve its customer service to enable customers to conveniently check online contract information.

Running on iOS operating system (used for Apple mobile devices such as iPhone, iPad), AIA i-Service is simply designed, easy to use and said to have high security.

After downloading the application, customers will be provided with an online account and password.

 Labor export: opportunities in 2015

More than 100,000 Vietnamese workers went abroad to work last year, doubling the yearly target by the Ministry of Labor, Invalids, and Social Affairs. It aims to maintain contracts in traditional labor markets this year while penetrating high-income niches. Improving the quality of overseas workers is also a key task.

Last year overseas Vietnamese workers increased in major markets: 62,000 workers in Chinese Taiwan, 20,000 workers in Japan, 4 thousand workers in Saudi Arabia, and 1 thousand workers in Qatar.

Chinese Taiwan recruited 62,000 Vietnamese workers to become the biggest employer of Vietnamese workers in 2014. Taiwan will remain Vietnam’s top labor market in 2015 because its economic and employment policies have been stable since 2011.

Tong Hai Nam, Deputy Director of the Overseas Labor Management Department, said “In 2015 Taiwan will continue to be the biggest importer of Vietnamese workers. Vietnam has focused on recruitment and training to improve the quality of workers.”

Japan has several work and study opportunities for Vietnamese workers and apprentices. Japan has a high demand for skilled workers and apprentices in construction, mechanics, manufacturing, agriculture, healthcare, and food processing.

Vietnam has surveyed new markets, which have better working conditions and higher salaries, in Africa and the Middle East. Vietnam will sign contracts with Angola and Saudi Arabia. With the formation of the ASEAN community, Vietnam expects to increase workers abroad. ASEAN’s agreement on equivalent skills recognition will allow free movement of accountants, architects, dentists, doctors, engineers, nurses, drivers, and tourist staff.

In order to fulfill labor export contracts in 2015 and later, Vietnam is paying particular attention to improving the quality of workers. Tong Hai Nam, Deputy Director of the Overseas Labor Management Department, said a limited number of high-quality workers were sent to the Republic of Korea in the past.

Over the past 2 years, the Overseas Labor Management Department signed two cooperative agreements with Japan and Germany to recruit, train, and send nursing assistants to work there.

Minister of Labor, Invalids, and Social Affairs Pham Thi Hai Chuyen said “The government has approved our plan to reform vocational training to access advanced technology and improve the quality of vocational teachers. This year we will benefit from 34 ASEAN-standard vocational training programs and will send teachers to train abroad. About 500 teachers and 45 managers of vocational training centers have been trained abroad.”

Vietnam will promote the image of Vietnamese guest workers internationally. Minister Chuyen added that “Workers will learn basic facts about the local country, people, customs, traditions, and work regulations.

About 70 companies are providing basic training courses. The Ministry will issue specific regulations for training companies to ensure the quality of overseas Vietnamese workers.”

Hai Phong receives FDI injection

Industrial zones in northern Hai Phong city lured roughly 35 million USD in foreign direct investment (FDI) in February, evidencing the city’s attractive economic strategy and infrastructure system.

The Hai Phong Economic Zone Authority (HEZA) granted a new investment certificate to Hansung P.T.C Co., Ltd from the Republic of Korea to carry out a project in Trang Due Industrial Park.

The project, worth 3 million USD, will focus on producing galvanised coating systems and coating plastic products and household appliances and is scheduled to become operational this month.

Meanwhile, the HEZA issued adjusted investment certificates for Japanese invested Zeon Vietnam to add new business operations, adjust production scales and increase invested capital in VSIP Hai Phong Integrated Township and Industrial Park. The capital was adjusted from 25 million USD to 27.69 million USD.

Two other FDI projects, also run by Japanese investors, received approval to inject a combined 27 million USD of capital.

Hai Phong continues to affirm the crucial role of FDI projects in promoting economic restructuring and reforming the city’s growth model towards green growth and sustainable development, Pham Thuyen, Head of the HEZA, said.

He added that the HEZA and its investors are working to accelerate the disbursement of investment in infrastructure and to support enterprises in tackling obstacles to production.

The city targets 2-3 billion USD in FDI in 2015, doubling the 2014 figures.-

Thua Thien-Hue plans to lure industrial zone funds

The central province of Thua Thien-Hue plans to attract investments worth 2.5 trillion VND to 3 trillion VND (119.05 million USD) to 142.86 million USD) and generate jobs for 1,000 to 1,500 new workers this year.

Provincial People's Committee Vice Chairman Phan Ngoc Tho said local authorities will hand over cleared sites in industrial zones (IZs) to investors, while considering this a priority in luring investments during 2015.

Further, the province will concentrate on the development of infrastructure, including traffic projects, electricity and water, along with waste treatment and fire prevention systems. It will also support investors in training the labour force.

According to the provincial IZs management board, the IZs have attracted 92 investment projects, with a total registered capital of some 19.59 trillion VND (932.86 million USD).

About 38 percent of this amount, or 7.40 trillion VND (352.38 million USD), have been disbursed, including 3.43 trillion VND (163.33 million USD) by foreign direct investment (FDI) enterprises.

Last year, the IZs generated revenues valued at 13.03 trillion VND (620.48 million USD), up 18 percent over the previous year, with the total number workers of nearly 17,100.

Thua Thien-Hue has four IZs, including the 185ha Phu Bai zone, which has been built on by 28 companies and will be expanded with an additional area of some 118ha.

They also comprise the Tu Ha and Phong Thu parks, each covering an area of 100ha. Just the Chan May-Lang Co economic zone has created jobs for about 6,000 labourers, and is requiring up to 24,700 workers this year, and 70,000 by 2020.

Tho said accelerating vocational training to assure the availability of skilled workers is necessary for a variety of sectors, including agriculture, forestry and aquaculture. He also mentioned fields such as handicrafts and mechanical goods production, as well as food processing.-

Hai Phong receives FDI injection

Industrial zones in northern Hai Phong city lured roughly 35 million USD in foreign direct investment (FDI) in February, evidencing the city’s attractive economic strategy and infrastructure system.

The Hai Phong Economic Zone Authority (HEZA) granted a new investment certificate to Hansung P.T.C Co., Ltd from the Republic of Korea to carry out a project in Trang Due Industrial Park.

The project, worth 3 million USD, will focus on producing galvanised coating systems and coating plastic products and household appliances and is scheduled to become operational this month.

Meanwhile, the HEZA issued adjusted investment certificates for Japanese invested Zeon Vietnam to add new business operations, adjust production scales and increase invested capital in VSIP Hai Phong Integrated Township and Industrial Park. The capital was adjusted from 25 million USD to 27.69 million USD.

Two other FDI projects, also run by Japanese investors, received approval to inject a combined 27 million USD of capital.

Hai Phong continues to affirm the crucial role of FDI projects in promoting economic restructuring and reforming the city’s growth model towards green growth and sustainable development, Pham Thuyen, Head of the HEZA, said.

He added that the HEZA and its investors are working to accelerate the disbursement of investment in infrastructure and to support enterprises in tackling obstacles to production.

The city targets 2-3 billion USD in FDI in 2015, doubling the 2014 figures.

Nghe An to attract 100 projects this year

The central province of Nghe An hopes to attract at least 100 projects with a registered capital of 20 trillion VND (952.38 million USD) in 2015, said Vice Chairman of the provincial People’s Committee Le Ngoc Hoa.

The official said he expects the new projects will provide jobs for 10,000-12,000 people.

According to its recent investment attraction strategy, Nghe An will call for investment in crucial infrastructure facilities, such as the Cua Lo and Dong Hoi ports.

It will prioritise projects in for-export manufacturing, mechanics, processing, building material production, trade and tourism services, high-tech agriculture, forestry development, and hospital construction, Hoa said.

The province has opened the door to both domestic and foreign investors and will seek those with experience and financial strength such as groups, corporations and companies with a nationwide reach and from developed economies like Japan, the Republic of Korea, Singapore, Israel, the US, France, the UK, and Germany, he added.

The Vice Chairman continued to say that Nghe An is working to improve the local investment climate and competitiveness while making the best use of support from the State and foreign organisations to attract investment.

It currently houses 776 projects, including 733 run by domestic investors with over 164.93 billion VND (7.85 million USD) in capital. The other 43 projects, valued at 1.61 billion VND (76.670 USD), are foreign investments.

Some major operational projects include dairy cow farming and milk processing by the TH-True milk company, the Sabeco packaging factory, and the Ban Ve hydropower plant.-

Honda to double Vietnam bike exports to 100,000 units: report

Japan's automaker giant Honda Motor Co. has targeted to double its made-in-Vietnam bike exports this year in an ambitious plan to become the biggest market share holder for motorbikes in more Asian countries, a Japanese business magazine reported Friday.

Honda Motor will export 100,000 motorbikes manufactured in Vietnam in 2015 as the company is fortifying its presence in Myanmar, Laos and other developing Southeast Asian countries, according to Nikkei Asian Review.

The Tokyo-based automaker is currently the marker leader in Vietnam, Thailand and Indonesia. The company also has plans to boost demand to replace their motorbikes among Vietnamese consumers by introducing higher-end models, Nikkei Asian Review reported.

Honda’s made-in-Vietnam 50cc scooters are being exported to Japan, whereas those with 100cc and larger engines are shipped to Europe and other places. Honda exported some 40,000 bikes from Vietnam in 2014.

In November 2014, Honda Vietnam inaugurated its third motorcycle production plant in the Southeast Asian country in the northern province of Ha Nam, some 40km from Hanoi.

The US$120 million facility has an annual production capacity of 500,000 units, Honda Vietnam said in a press release.

The total production capacity of Honda in Vietnam is 2 million units per year, according to Nikkei Asian Review.

Honda accounts for 70 percent of the total two-wheeler market share in unit sales in Vietnam, making mostly scooters with 50cc to 110cc engines, the Japanese magazine said.

A Honda Vietnam representative told local media in mid-January that Honda Motor was weighing the possibility of relocating part of its motorcycle production in Vietnam back home as Japan’s domestic manufacturing costs have fallen over the weak yen.

Details for the plan, however, could not be disclosed immediately, according to the source.

It was reported earlier this year that the production lines will be transferred back to Japan to meet domestic demand.

Honda’s annual motorbike sales in the Japanese market are around 200,000 units, half of which are those with under 50cc engines.

With production costs in Japan soaring, the company previously had to move part of its production to Vietnam to save costs.

But it is now costlier to import made-in-Vietnam motorbikes than make them domestically, and Honda is thus likely to reverse its decision

Citi announces $100 Billion to finance sustainable growth

Citi has just announced a landmark commitment to lend, invest and facilitate a total of $100 billion within the next 10 years to finance activities that reduce the impacts of climate change and create environmental solutions that benefit people and communities.

Citi’s previous $50 billion goal was announced in 2007 and was met three years early in 2013.

With this $100 billion initiative, Citi will build on its leadership in renewable energy and energy efficiency financing to engage with clients to identify opportunities to finance greenhouse gas (GHG) reductions and resource efficiency in other sectors, such as sustainable transportation.

As part of a commitment to helping cities thrive during this period of unprecedented urban transformation, Citi will seek to finance and support activities that enable communities to adapt to climate change impacts and directly finance infrastructure improvements that increase access to clean water and manage waste, while also supporting green, affordable housing for clients, including in low- and moderate-income communities.

“Citi has demonstrated its deep commitment to not only taking environmental consequences into account, but also finding innovative ways to finance projects that lead to sustainable growth,” said Michael Corbat, Chief Executive Officer of Citi.

“For more than 200 years, Citi’s mission has been to enable progress by facilitating economic growth and financing transformative projects. The core mission hasn’t changed, but the way we approach it has. Incorporating the principles of sustainability into everything we do improves our own operations, enhances our clients’ work, and contributes to a better world.”

“Reducing carbon emissions and becoming more climate resilient is a key priority and major challenge for the world’s megacities and their business communities,” said James Alexander, Head of the Finance and Economic Development Initiative at C40 Cities Climate Leadership Group, a network of the world’s biggest cities working to become more sustainable.

“C40’s ongoing partnership with Citi is helping global cities overcome their climate finance challenges. Today’s announcement from Citi will add further opportunities to help cities achieve their climate targets, and allow businesses to become more sustainable,” he added.

This environmental finance initiative is part of a new five-year sustainability commitment that also focuses on environmental and social risk management and sustainability goals for Citi’s own businesses and operations.

Citi has established new environmental footprint goals for 2020, including 35 percent reduction in greenhouse gas (GHG) emissions, 30 percent reductions in energy and water use and 60 percent reduction in waste, all against a 2005 baseline. The initiative also includes a longer-term 2050 GHG emissions reduction goal of 80 percent, created using a climate science-based 2 methodology. Targeting 33 percent of its real estate portfolio to be LEED certified, Citi will also seek LEED Platinum certification for its 388/390 Greenwich Street facility in New York City, which will become the company’s global headquarters once it is fully renovated.

Phu Tho urged to attract investment from ASEAN

The northern province of Phu Tho ought to promote its potential in textiles, footwear and leather exports as well as seek more opportunities to attract investment from other ASEAN countries.

Deputy Prime Minister and Foreign Minister Pham Binh Minh made the statement while attending a working session with the provincial leaders on February 28.

Deputy PM Minh emphasised that in 2015, Vietnam will sign a number of free trade agreements with ASEAN countries and trade agreements with partners around the world, therefore to take advantage of such circumstances; Phu Tho has been advised to exert more efforts in relevant fields and seize opportunities to develop in a sustainable manner.

The province should also connect with countries and territories that have the same beliefs and culture in the region to develop tourism and related services, expanding the tourism industry into a key economic sector of the locality, he added.

The Deputy PM also called for the Ministry of Foreign Affairs and other relevant ministries, sectors, and organisations to support and help Phu Tho preserve the traditional art of Xoan singing, which is currently on the list of Intangible Cultural Heritage in Need of Urgent Safeguarding.

During his trip to Phu Tho, Deputy PM Minh presented 20 wheelchairs to disadvantaged people in the province, offered incense at the Hung Kings Memorial and temples dedicated to Lac Long Quan and Au Co in Ha Hoa district.

Vietnam posts trade surplus of US$300 million in February

Vietnam gained a trade surplus of US$300 million in February after posting a deficit of US$361 million in the previous month, according to the General Statistics Office (GSO).

Exports in February were estimated at US$9.6 billion, down 28.4% against January while imports were valued at US$9.3 billion, a decrease of 32.4% from the previous month.

The GSO said trade activity in February lost momentum because of the week-long Lunar New Year holiday.

In the first two months of 2015, the export and import values were largely the same with imports at US$23 billion, higher than the export figure by a modest US$61 billion, compared with a US$1.35 billion surplus of the same period last year.

Exports in the January-February period rose 8.6% year on year, mainly driven by a 12.4% rise in the export revenue of the foreign sector, including oil exporters while domestic enterprises recorded an insignificant increase of 0.7%.

Electronic devices and computers were the leading exports, surging by more than 57% compared with the same period last year while phone export growth slowed to 15.3%.

On the import side, the first two months of the year saw car imports skyrocket by 61.9%, followed by increases in machinery and electronic devices.

Sharp funding cut in Long Thanh airport project

The capital estimate for the first phase of Long Thanh airport project has been adjusted down to US$5.2 billion from the previous US$7.8 billion after experts and National Assembly deputies cast doubt on the investor’s ability to mobilize hefty funds for the big-ticket project and expressed concern about its impact on the country’s public debt.

Transport Minister Dinh La Thang told the 35th session of the National Assembly (NA) Standing Committee in Hanoi on February 27 that the Government had revised down the funding estimate for the first phase of the international airport in Dong Nai Province by US$2.6 billion after careful reviews.

The latest revision in the new report the minister delivered on behalf of the Government is higher than the US$1.2 billion reduction discussed by representatives of the Ministry of Transport, Airports Corporation of Vietnam (ACV) and relevant agencies at a meeting on Tuesday.

Of the US$5.2 billion planned for the first phase, official development assistance (ODA) funding is projected to account for US$1.3 billion and the State budget US$578.3 million. The remaining US$3.2 billion is sourced from the project’s investor ACV with VND12.15 trillion (over US$568 million), proceeds of equitized components and investments of enterprises joining the project via the public-private partnership (PPP) format.

The funding cut is attributable to some major adjustments, including construction of only one runway in the first phase instead of two as planned at the end of last year. This will help save some US$1 billion but still ensure the airport could handle 254,000 take-offs and landings and 38 million passengers a year.

More money could be saved from more components of the airport project in Long Thanh District subject to equitization after the international airport is put into operation.

The new report also says that the financial internal rate of return (FIRR) of the passenger terminal of the airport would be 13.9% with return on investment over 25 years in addition to the economic internal rate of return (EIRR) put at 22.1% with return on investment over 40 years in the previous report.

Thang acknowledged that the accuracy of calculations in the pre-feasibility study of the airport project was not high. He pledged the ministry and relevant agencies will continue reviewing facts and figures when making the feasibility study if the NA gives the nod to the project.

The ministry proposed withdrawing 5,000 hectares for the project at one time and then earmarking 2,750 hectares for civil aviation only to help save another US$535 million.  

At a meeting in Hanoi on Wednesday, the ministry proposed a pilot scheme to sell the operation rights to Phu Quoc International Airport and Hall E of Terminal 1 at Noi Bai International Airport to investors to raise capital for Long Thanh airport development.

At the session of the NA Standing Committee yesterday, Thang sought approval for ACV to use the money mobilized from its equitization to fund the airport project.

Despite explanations made by Thang, members of the NA Standing Committee wanted the Government to clarify more about the sharp funding cut for the airport project and its impacts on the State budget and public debt as the State budget still covers the PPP and ODA funding for the project.

Phung Quoc Hien, head of the NA’s Financial and Budgetary Committee, called for the Government to weigh the possible impacts of Long Thanh airport as the State budget needs to provide more than VND40 trillion (over US$1.87 billion) for the project if all sources of capital are calculated.

Hien questioned the role of Long Thanh when it is designed to serve as a transshipment airport for the flights from Indonesia, the Philippines and Australia. However, Thang said the airport is expected to operate as a hub for the airlines from other markets rather than the three countries only.

Thang said the State budget should cover a maximum 30% of total funding of the project and that capital for the project would not be a big concern if ACV is allowed to use the money raised from its equitization and Phu Quoc airport is up for sale.

Nguyen Thi Kim Ngan, vice chairwoman of the NA, asked to make clear the proportions of funds from the State budget, bonds, ODA and PPP sources for the project, and that how much the State budget could be saved if other investment sources are mobilized.

NA deputies asked the Government to provide exact funding figures for three phases of the airport project and find effective ways to avoid adjusting up it when the project is implemented.

Revised total funding for the whole project is estimated at US$15.8 billion, down nearly US$3 billion compared to the previous report, according to news site VnExpress.

Long Thanh airport is designed to handle Airbus A380 jumbo jets and those of same seating capacity, and up to 100 million passengers and five million tons of cargo per year. Previously, ACV planned to break ground for the first phase of the Long Thanh airport project this year.

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