Ho Chi Minh City container thefts remain rife

With their goods stolen from inside containers during transportation to ports, many businesses in Ho Chi Minh City have incurred losses of millions of dollar besides having their reputation damaged.

In just the last 10 days of June, wood exporter TTP had 14 tons of timber stolen en route to Cat Lai Port for shipment to China.

The company said it had not checked the containers later since the seals had been intact.
“Only when our Chinese partners reported the loss upon the containers’ arrival did we learn about the theft,” it said.

The company suspected a particular container-truck driver of stealing the goods in collusion with outsiders, and hired him again to transport a batch of timber to Cat Lai Port on October 2.

When the container arrived at the port, the company weighed it and found one ton missing.

H, the driver, was arrested.

He confessed to stealing goods worth around VND500 million (US$24,390) on three previous occasions.

H said he had been enticed into it by some others who gave him VND110 million for his “cooperation.”

All the thefts had been committed in the city’s outlying districts like Binh Chanh and Thu Duc, he said.

“I would drive the containers there and go for coffee, while others would come and steal the goods,” he said.

The Vietnam Cashew Association (Vinacas) said its losses from thefts en route since 2007 had amounted to $2 million.

One HCMC-based exporter had lost six tons of cashew sent to Thailand.

The global positioning system on the container showed that the driver had stopped for a long time in District 12.

But the company still did no check the consignment at the port since there were no signs of tampering.

The Thai partners later informed the company about the loss, and it had to pay them $135,000. Meanwhile, the driver had fled.

Besides, Vinacas added, there had been other cases of theft that businesses had not reported for fear of losing their reputation.

The HCMC Police Department for Investigation of Social Order (PC45) said it had received dozens of complaints about container theft this year.

The thieves targeted not only rubber, pepper, and cashew but also timber, fabric, and frozen seafood, it said.

The thieves usually enticed the drivers or colluded with them.

Le Van Thanh Tam, a PC45 officer, said despite the frequent thefts container owners had yet to become fully aware of how to protect their goods.

They should send representatives on the trucks to the port, he said.

“They should also have the containers weighed at the port before export,” he said.

VN-China trade conference opens in Nanning

A Vietnam-China trade conference was held in Nanning city of China on Oct. 23, as part of the ongoing 8 th China-ASEAN Expo and the 8 th China-ASEAN Business and Investment Summit.

Co-organised by the CAEXPO-2011 Secretariat and the Trade Promotion Agency under the Vietnamese Ministry of Industry and Trade, the 8 th Vietnam-China Trade Conference drew the participation of over 60 Vietnamese enterprises and a large number of Chinese businesses operating in food processing, construction materials, machinery, electronics, electric equipment, health care and pharmaceuticals.

Speaking at the event, Deputy Head of the CAEXPO-2011 Secretariat Huang Bingxi said that the conference created favourable conditions for the two countries’ businesses to meet and exchange experience as well as seek economic and trade cooperation opportunities.

The conference was also a good chance for Vietnamese enterprises to seek suitable Chinese partners, said Ta Hoang Linh, Deputy Head of the Trade Promotion Agency.

As an initiative of the CAEXPO-2011 Secretariat and the Trade Promotion Agency, the annual conference has helped boost the Vietnam-China friendship and cooperation in economics, trade, investment, culture and tourism, thus effectively promoting the establishment of the China-ASEAN Free Trade Area.

Vietnam ranking down in World Bank business report

Vietnam's position plunged eight notches to 98 in a freshly released International Finance Corporation (IFC) and World Bank report on the overall ease of doing business around the world despite its effort to protect investors.

IFC, a member of the World Bank Group, explains in its Doing Business 2012: Doing Business in a More Transparent World report that the slump is due partly to strong reforms in many other economies and the country’s poor performance on the two indicators: “Paying taxes” (down 22 notches) and “Resolving insolvency” (down 12 notches).

It says Vietnam has strengthened investor protections by requiring higher standards of accountability for company directors.

The report shows a total of 245 business regulatory reforms were implemented across 125 economies – 13 percent more reforms than in the previous year.

In the meantime, 29 economies are shown to have implemented insolvency reforms, up from 16 the previous year and 18 the year before.

This year’s report includes indicators on getting an electrical connection, an area that has cost Vietnamese firms much more time and expense than in other countries, the Saigon Times Online newspaper says.

Singapore led on the overall ease of doing business, followed by Hong Kong SAR, China; New Zealand; the United States; and Denmark.

The Republic of Korea was a new entrant to the top 10.

IFC and the World Bank says China, India, and the Russian Federation are among the 30 economies that improved the most over time.

The report have been annually published since 2004 to assess regulations affecting domestic firms in 183 economies and ranks the economies based on such areas as starting a business, resolving insolvency, trading across borders, among others.

CPI rises 0.36 per cent in October

The Consumer Price Index (CPI) saw a month-on-month slight increase of 0.36 per cent in October, the General Statistics Office reported.

The price of three commodities actually dipped but the price of other goods rose by between 0.06 per cent to 3.2 per cent.

Educational products witnessed the highest price rise, going up by 3.2 per cent. The next biggest risers were foodstuffs, restaurant services, home appliances and garments.

Building materials, transportation and post dropped 0.03 per cent, 0.13 per cent and 0.17 per cent respectively.

The index in October increased by 21.59 per cent against the same month last year. In the first 10 months of 2011, the CPI rose 18.5 per cent against the same period last year.

Coffee exporters to face new rules

The Ministry of Industry and Trade (MoIT) is compiling a draft decree to deal with problems relating to the management of coffee exports.

The decree would require exporters to meet specific conditions such as having legal trading certification, exporting at least 5,000 tonnes of coffee a year for two consecutive years, having standard processing and warehousing facilities to store at least 5,000 tonnes of coffee, and meeting financial transparency standards.

At present, it is estimated that only 40 enterprises in the country would meet requirements set by the draft decree and be allowed to export coffee.

According to the Viet Nam Coffee and Cocoa Association (Vicofa), more than 150 enterprises are involved in coffee exports at present.

These enterprises competed with each other in buying and selling coffee, negatively impacting the country's credibility as well as coffee quality, Vicofa said.

The Ministry of Agriculture and Rural Development (MARD) has agreed with the MoIT on the need for new rules on coffee trading and export, saying they are an imperative in the current situation.

Viet Nam exported 1.2 million tones of coffee worth US$2.6 billion in the 2010-11 crop, up 8 per cent in volume and 47 per cent in value over the 2009-10 crop, Vicofa said.

The association estimates coffee output for the 2011-12 season at about 18-18.5 million 60-kg bags (1.08-1.1 million tonnes), accounting for 15 per cent of the global output.

The country expects to export more than 1.1 million tonnes of coffee next year.

Based on enterprises' export capacity and capital demand, MARD has asked commercial banks to set aside between VND16 trillion ($763.5 million) and VND20 trillion ($954.4 million) to help them purchase the beans produced in the 2011-12 harvest.

Hanoi's trade deficit hits $12.5 billion
 
The capital experienced a trade deficit of more than US$12.5 billion in the first ten months of the year, according to the Ha Noi Statistics Office.

In October alone, the city gained an export turnover of $910 million, up 4.9 per cent over the previous month, lifting the total figure in the first ten months of the year to $8 billion, up 26 per cent over the same period last year.

With high growth rates between 18.5 and 25.7 per cent, rice, coffee and handicrafts contributed the most to the city's total export value, the office said.

However, the city spent much more on imports, the office said, stating that the capital's import value was up to $2.18 billion in August, bringing the January-October total to $20.56 billion, up 19.7 per cent over the same period last year. The import value of petrol and fertiliser made up the highest increase over ten months at 51.6 and 56.8 per cent, respectively.

Deputy Director of the Ha Noi Department of Industry and Trade Pham Duc Tien said that to reduce the trade deficit, the city had focused on boosting exports of processed products and high export potential wood products, construction materials, handbags and handicrafts.

It has also sped up the improvement of export-import administrative procedures related to tax, customs and licences.

However, Tien said that the toughest challenge exporters were facing was the high input costs associated with materials, lending rates and labour.

Lending interest rates have remained high despite recent reductions, causing exporters difficulties in collecting goods for export, he said.

Ha Noi expects to earn an export turnover of $10.3 billion this year, up 27.1 per cent over last year.

Business associations play key role  

Business associations play key roles in private-sector development strategy and act as mediators between the Government and the business community, according to the executive director of the European Chamber of Commerce in Viet Nam.

Speaking at a third trade and investment exhibition and conference in HCM City held last Friday, Matthias Duhn said business associations like EuroCham provided vital information on the country's laws and economic policies to private businesses.

He urged business associations to solicit the ideas of small- and medium-sized enterprises in an aim to improve the business climate.

The conference was organised by the HCM City Union of Business Associations (HUBA) in collaboration with HCM City's Union of Friendship Organisations, Department of Planning and Investment, Department of Industry and Trade and the International Media Company (IMC).

The event attracted more than 400 attendees including consuls general, honorary consulate and commercial affairs officers, and representatives from foreign investment funds and foreign businesses associations in HCM City.

Increasing Viet Nam's competitiveness at a time of economic difficulties was a major theme of the conference.

Herb Cochran, executive director of the American Chamber of Commerce in Viet Nam (AmCham), said that AmCham regularly supported local exporters by organising seminars and workshops to give very specific information about how to meet challenges when exporting to the US.

Cochran said the greatest challenges were the complex technical and regulatory requirements for exporting to the US, which include regulations on security, compliance, health and safety, corporate social responsibility, and financial transparency.

AmCham members such as Bureau Veritas, Intertek, Quatest 3 and Total Quality Certification Services International Viet Nam are helping thousands of factories in Viet Nam meet these standards on compliance, testing and certification and corporate social responsibility.

Dun and Bradstreet, an AmCham member that recently opened an office in Viet Nam, is working with the Viet Nam Chamber of Commerce and Industry and other Vietnamese business and industry associations to help domestic companies find customers and suppliers.

Like many business associations, the Canadian Chamber of Commerce in Viet Nam supports trade missions. A visit by a Canadian trade delegation, for example, led to the signing of a memorandum of understanding between the Western Canada Food Association and the HCM City Business Association on food exports.

At the conference, Lu Thanh Phong, deputy director of the city's Department of Planning and Investment, said he expected that more foreign businesses would choose HCM City as an investment destination in the future.

The department has asked the Government to promptly issue measures to deal with land speculation and to develop a support policy on human resource development to meet the requirement of investors, particularly in the hi-tech and software production sector.

Procedure simplifications and faster issuance of licensing are both needed.

He said the National Assembly should amend investment-related laws, particularly regulations on investment licensing and implementation period for investment projects.

The department pledged to create a transparent legal framework for foreign investors. It also planned to offer online guidance and support to domestic and foreign businesses in implementing their projects.

Since 1988, HCM City has had 4,041 FDI (foreign-direct investment) projects with a total registered capital of $31.32 billion. Of this amount, $12.4 billion in investment capital has been disbursed, accounting for nearly 42.4 per cent of registered capital.

The FDI businesses have contributed 23.2 per cent of the city's GDP, and 38.6 per cent of the city's industrial production value.

Largest investors in HCM City are Singapore, Malaysia, Hong Kong, South Korea and Taiwan.

For the first nine months of this year, total FDI capital reached $2.32 billion, an increase of 126.3 per cent over the same period of last year.

Licences were issued for 293 new projects with a total capital of $1.92 billion, an increase of 116.95 per cent.

At least 104 projects asked to increase capital, which totalled $396.95 million.

At the conference, the HCM City Union of Business Associations signed several MOUs with AmCham, Eurocham and other business associations in the city. These called for closer linkages between foreign and local business associations as well as better support for both foreign and domestic companies.

Machine tool and metalwork trade fair to attract local manufacturers

The largest machine-tool and metalworking technology fair in Southeast Asia, Metalex 2011, will provide Vietnamese enterprises with the chance to update their production technology and discover new business opportunities.

Suthisak Wilanan, group project manager of Thailand-based Reed Tradex Company, said the four-day event beginning on November 16 in Bangkok would bring together 2,700 global brands from 50 countries and territories displaying thousands of new machinery and cutting-edge technologies used in metalworking industries.

"In recent years, Viet Nam has emerged as one of the most attractive destinations for foreign direct investment in the world, as foreign industrial manufacturers continue to express interest in setting up new facilities here," he said at a press conference held in HCM City recently.

With Viet Nam aiming to become an industrialised country by 2020, companies must keep up to date on trends in modern machinery and technology solutions to enhance production capacity and product quality, Suthisak said.

Three-nation joint venture opens $10m bakery factory in Long An

Topcake, a Viet Nam-Australia-Philippines joint venture, inaugurated last Thursday a US$10 million bakery in Long An Province.

The bakery, which can produce 540,000 cakes a day, is located on a 20,000sq.m site in the Long Hau Economic Zone.

It will produce pastries with a shelf life of up to two months.

The bakery would be fed with wheat flour imported from the US, milk powder from Australia and paper cups from Italy, said Huynh Van Ro, CEO of Topcake JV Co.

Local partner Lam Ngoc Pham has a 30 per cent stake in the joint venture, as does Filipino cake maker Lemon Square under the Big E Food Corporation. The remaining 40 per cent stake is held by Australia-based Cakaroo.

Bank, datacommunications firm develop digital signature service

Orient Commercial Joint Stock Bank and the Viet Nam Datacommunications Company Region II have developed a digital signature service.

A digital signature is a mathematical scheme to demonstrate the authenticity of a digital message or document, making them unalterable in transit.

The service, VNPT-CA, will allow the bank to verify and secure customers' identification online.

the past six months. The year could be tough for the steel industry due to the challenges posed by the foreign exchange rate and high interest rates, said Pomina Steel (POM) chairman Do Duy Thai.

"It will be hard for us to complete the year's plan to achieve a profit of VND612 billion (US$29.5 million) as our company have to cover losses caused by exchange rate fluctuations," Thai said in an interview with the newspaper Dau tu Chung khoan (Securities Investment).

POM, which leads the steel market with a 15.2-per-cent market share, currently has to import 70 per cent of its raw materials.

SMC Trade and Investment Co (SMC) was also compelled to reduce its net profit target from VND90 billion ($4.3 million) to VND80 billion ($3.85 million) and extend its estimated time of completion for its Hiep Phuoc project since costs have risen sharply. "However, we have to import only 30 per cent of raw materials, the difficulties due to exchange rate are less serious than in other companies," the company said.

Dai Thien Loc Co (DTL) was trying to restrict exchange rate risks by promoting exports, but the weakness of the world economy has significantly affected the company's export performance, causing the DTL to trim its earnings targets by about 19 per cent.

Viet Nam-Italy Steel Co (VIS) said the slowdown in real estate sales and construction had also hurt the industry.

Shares of steelmakers on both national stock exchanges have fallen by 7-29 per cent since May this year, with shares of Hoa Sen Group (HSG), Huu Lien Asia Corp (HLA), Tien Len Corp (TLH), Viet Nam-Germany Steel Pipe (VGS) and Phuc Tien Co (PHT) falling below their face values.

Vietnam, Laos promote trade and energy ties

Vietnamese Minister of Industry and Trade Vu Huy Hoang met and worked with Lao Mininter of Industry and Commerce, Nam Viyaketh, and Minister of Energy and Mining, Soulivong Daravong on October 22 .

At the meeting, part of Mr Hoang’s visit to Laos, both sides expressed their satisfaction with the outcome of Vietnam-Laos cooperation in trade and energy and discussed ways to continue boosting ties in the future.

The two countries will sign an agreement on tax incentives under which Vietnam will raise the quota for Laos rice exports to Vietnam from 40,000 tonnes to 70,000 tonnes in 2012 and charge no import duties.

They also agreed to create a mechanism to manage Lao exports of round and sawn timber to Vietnam and speed up the progress on hydro electric power plant projects in Laos.

Intel Vietnam compete for Award for Corporate Excellence

Intel Vietnam has been named one of 13 finalists worldwide for the US Secretary of State’s prestigious 2011 Award for Corporate Excellence (ACE).

These companies were chosen from 62 businesses nominated by US ambassadors around the world.

Intel Vietnam was selected for its public-private partnership programmes that promote education reform and skilled workforce development, creating increased opportunities for women in the sciences, and raising awareness of environmental issues as well as voluntary activities.

The 2011 ACE winners will be announced at a ceremony to be hosted by the US Secretary of State later this year.

The Secretary of State has awarded the ACE since 1999 to recognise American companies which are leaders in socially responsible activities and contribute to the overall growth and development of the local economy in which they work.

Consultants to devise urban planning scheme

The People's Committee of the southern coastal province of Kien Giang plans to allocate US$1.2 million for urban planning of Phu Quoc island district.

A consultancy contract was signed with Kien Giang Province last Friday between the Development Investment Construction Corporation (DIC), the Sai Gon Investment Construction and Commerce Corporation (SICC), and Japan's Sekkei Civil Engineering Ltd (NSC), according to Lam Hoang Sa, chairman of the Committee.

Under the contract, the companies will develop planning for An Thoi and Duong Dong urban subdivisions on Phu Quoc Island.

Of the $1.2 million, $883,500 will be used to plan Duong Dong Township on the scale of 1:2000, while the remainder, $388,550, will be used for An Thoi Township.

The contract is due to be completed within nine months, with the NSC bearing the main responsibilities, according to Sa.

The main objectives of the province's Phu Quoc development scheme are to build Duong Dong Township into an administrative, trade, service and tourism centre, with total construction area of 2,502ha and a population of 230,000 by 2030.

An Thoi Township would be turned into an international port urban centre that will operate as a non-tariff logistics service centre as well as a trade and tourism centre.

Ink dries on massive energy project

South Korea’s Daelim Industrial Company is to join hands with Vietnam’s Petrolimex to build a multi-billion dollar mega oil refinery and petrochemical project.

The two firms last week inked a memorandum of understanding which would see joint investment into the $3 billion project in central Khanh Hoa province, a senior executive of Daelim said in a meeting with the Ministry of Planning and Investment.

This project on Van Phong Bay is set to be one of the largest oil refinery and petrochemical projects in Vietnam. Petrolimex announced the plant would have total capacity of up to 10 million tonnes of crude oil annually, similar to the capacity of Nghi Son project which is now developed by PetroVietnam and its Japanese and Kuwait partners in central Thanh Hoa province.

In the first stage of the project Daelim would provide engineering-procurement-construction services to build the oil refinery and petrochemical project, the Daelim executive said “We want to be a shareholder at this project, too,” he added.

The executive declined, however, to give details, saying the deal was still “in the negotiations stage.” Daelim is one of Korea’s largest engineering, construction and petrochemical businesses. It has an overseas network covering 11 countries and posted revenue of $4 billion last year. A Petrolimex source said the participation of Daelim would help the state-owned corporation to push forward the project as scheduled because the corporation had been finding it tough to mobilise funds.

Petrolimex is now the biggest fuel supplier in Vietnam with a 55 per cent market share. The company’s leading position comes thanks to its strong distribution network of 2,100 retail outlets around the country.

When Petrolimex carried out its initial public offering in July this year, the group announced the Van Phong project would come onstream by the end of 2013 and produce a range of products like LPG, high-octane unleaded gasoline, kerosene, diesel, polypropylene and benzene.

The Daelim executive said the Korean firm would be keen on seeking out another potential partner alongside Petrolimex. But, he said Daelim and Petrolimex first planned to build the first phase of the oil refinery with capacity of 4 million tonnes of crude oil per year.

In a bid to ensure power security, Vietnam is developing several oil refinery and petrochemical projects. The first, Dung Quat refinery, is operating in central Quang Ngai province. Three others are in the pipeline in Phu Yen, Ba Ria-Vung Tau provinces and Can Tho city.

GM rolls out stylish cars

GM Vietnam is set to grab a bigger slice of Vietnam’s automobile market share with its recent launch of new mini Spark and Captiva SUV under its best selling  Chevrolet brand.

The launch came a month after General Motors rebranded its Vidamco unit as GM Vietnam and announced Chevrolet as its sole retail brand in the country.

“Vietnam is one of the most important markets for General Motors as it has a growing economy and very viable potential for the automobile industry. In this aspect, we regard success in such highly potential emerging markets like Vietnam as the key to remain as the global industry leader,” said Gaurav Gupta, managing director of GM Vietnam.

The newly-launched 1.2 litre double overhead camshafts (DOHC) engine Spark is a car that is ideal for those with an urban lifestyle. With the styling of a sporty hatchback, it showcases the new direction of Chevrolet design and a new trend in the design of mini-cars.

“GM’s clear goal from the very beginning was to create a revolution in size and design despite the restrictions of the mini segment,” said Gupta, adding that the new Chevrolet Spark would help GM Vietnam further increase its current segment share of 30 per cent in mini-cars in Vietnam.

Meanwhile, the new Captiva offers improved performance and fuel economy with its 2.4-litre DOHC Ecotec gasoline engine, along with a premium six-speed automatic and manual transmission. Amid all the changes and improvements that have been made from the previous generation, the new Captiva offers advantages in safety and convenience, with the electric parking brake system and auto leveling rear suspension control.

“With its strong, fresh, bold front fascia design and improved performance, the new Captiva will provide the best value to our customers. This is what Chevrolet stands for,” said Gupta.

Last year, more than 4.25 million Chevrolet vehicles were sold in more than 130 countries around the world. The Chevrolet brand accounts for 53 per cent of the firm’s overall sales and is one of the world’s fastest-growing vehicle brands.

Gupta said that GM’s sales of Chevrolet products in Vietnam in the first eight months of 2011 increased 40 per cent on-year, enabling it maintain the second-place position among foreign invested automakers in the country. With its manufacturing facility in Hanoi, which began operation in 1995, GM Vietnam has an annual assembly capacity of 20,000 vehicles for sale in Vietnam and for exports. It operates a nationwide sales network with 20 dealers, 22 showrooms and upgraded after-sales service centres in Hanoi and Ho Chi Minh City.

“With Vietnam’s traditional Tet holidays coming up, we are expecting higher sales in the automotive market,” said Gupta. According to the Vietnam Automobile Manufacturers’ Association (VAMA), Vietnam’s auto sales have increased by 10 per cent year-on-year, totalling 10,031 units in September. Last month, Toyota Vietnam retained first place by selling 3,048 units, followed by Truong Hai Auto and GM Vietnam with 2,677 and 1,068 units, sold respectively.

With September’s figure, VAMA members’ total auto sales in the first nine months of this year reached 80,678 units, an increase of 3 per cent in comparison with the same period in 2010 in which SUV/MPV/Cross-over went up by 4 per cent and passenger cars increased by 31.6 per cent.

Vinagame signs contract with Google  

Vinagame Company of Vietnam has signed a partnership deal with Google to promote Google Chrome in Vietnam for a period of six months, from September 2011 to March 2012.  
 
Vinagame is the first Google partner in Vietnam for promotion of the Google Chrome browser, which combines minimal design with sophisticated technology to make the web faster, safer and easier.

Vinagame will be allowed to change the Google Chrome interface to suit internet users in the country.

Internet users can now download Google Chrome from Zing Home web, instead of Google web.

PV