Jetstar Pacific launches Tet promotional fares

Travel during Tet holiday will be easier for passengers as the low-cost carrier Jetstar Pacific will offer 11,000 tickets priced 11,000 VND (0.49 USD) one way for 27 domestic and international routes.

The special tickets will be on sale from 23:00 on February 7 (the 29 th day of the 12th month of the lunar calendar) until February 14 or until the special fares are sold out.

Customers can book flights on Jetstar’s website www.jetstar.com . Online payment is required at the time of purchase to be eligible for promotional fares.

Jetstar plans to present a calligraphy Tet greeting to each passenger travelling during the Lunar new year holidays, wishing them a safe and happy year of the Monkey.

In addition, Jetstar Pacific will deliver Tet gifts to disadvantaged people with the hope of bringing a warmer Tet to the needy.

The airline announced the addition of three more Airbus A320s to its fleet, as well as more flights on 12 routes to serve increasing demands during the Lunar New Year 2016.

Jetstar Pacific – the first budget carrier in Vietnam – is currently operating 32 domestic and international routes. Being the third fastest growing airline in the region, Jetstar Pacific was honoured by Nielsen, a global information and measurement company as the best low-cost carrier with good services in 2015.

VN to cut tariffs on Laos imports

Many goods imported from Laos will enjoy a reduction of 50 per cent of tariffs between February 14, 2016, and October 3, 2020, according to the Ministry of Finance.

The information was released in Circular 216/2015/TT-BTC by the Ministry of Finance about import and tax rates for implementation of bilateral trade agreements between Viet Nam and Laos.

The Circular 216 stipulates a list of goods originating from Laos imported into Viet Nam that will enjoy a tax reduction of 50 per cent under ATIGA (ASEAN Trade in Goods Agreement).

The circular also stipulates that in case export tariffs in the ATIGA are higher than the tariff regulations in the Most Favoured Nation (MNF) Rules, imported goods will be subject to a 50 per cent tax reduction under the MNF.

Goods subject to tax reductions will include preserved or cooked poultry and birds' eggs, rice, sugarcane or refined sucrose.

The provisions on non-tariff incentives, the Circular 216 also issues instructions on guidelines and conditions applied for a tariff rate regime at zero per cent for tobacco and rice annually.

Specifically, imported items eligible for 50 per cent tax incentives, must fulfil the following conditions:

1.) It will consist of customs declaration of imported goods from October 3, 2015. 2.) Goods must be imported and transported directly from Laos into Viet Nam. 3.) Imported items must have certificate of origin form S issued by Laos authorities.

If the volume of imported unmanufactured tobacco and tobacco refuse exceeds the quantity of quota regulated by Viet Nam's Ministry of Industry and Trade, it will be subject to a tax rate under the Circular No.80/2014/TT-BTC.

This circular dated June 23, 2014, of the Ministry of Finance amends and supplements its Circular No. 111/2012/TT-BTC of July 4, 2012, promulgating the list of commodities and their import duty rates for application of tariff quotas.

This circular is to add the over-quota import duty rates of unmanufactured tobacco and tobacco refuse under sub-heading 2401.10.40.

Three kinds of imported rice from Laos will also enjoy tax incentives at 0 per cent. Of the rice volume, quota for rice imports is 70,000 tonnes and quota for tobacco imports is 3,000 tonnes, according to the Circular 216.

Flower industry needs tech growth

Both local and foreign experts have urged Vietnamese flower growers to cultivate new kinds of flowers and use high-tech planting techniques to develop the industry.

Pham Van Hai, CEO of Viet Nam Trade International, said: "The city of Sa Dec in Dong Thap Province, which is one of the country's flower cities, has developed slowly compared to its potential as many farmers have not used advanced technology in cultivation."

Speaking at a conference held in HCM City on Monday, he said demand for flowers had surged for special occasions like Valentine's Day, International Women's Day, Viet Nam Teacher's Day and Lunar New Year.

Dr Nguyen Duc Tri, dean of the School of Tourism under the HCM City University of Economics, said that flowers in the past were used primarily for use at altars honouring ancestors.

Hai said that to develop a stable domestic flower market, new types of flowers and application of advanced cultivation techniques were needed.

Co-operation with other countries, such as the Netherlands, which is a major flower producer, would be important, Hai said.

Such cooperation would help farmers learn new techniques.

"When the country has a stable and diverse, as well as high quality, flower market, the proportion of flowers exported to other markets such as Japan, Taiwan, Korea, Singapore and Hong Kong will increase," he said.

Viet Nam's flower growing area of about 8,000 hectares yields 4.5 billion fresh-cut branches, of which 1 billion were rose, daisy and orchid for export each year.

Ha Noi, Hai Phong and Lam Dong Provinces produce the highest number of flower branches.

Da Lat in Lam Dong Province is the country's biggest flower producer and exporter, annually providing 10 million saplings for domestic and foreign markets.

The biggest import markets include China, which imports flowers from Da Lat, such as roses, lily and orchids, and Japan, whose customers are fond of lotus flowers.

In 2014, the total value of flower exports to Japan was $22 million.

The Netherlands imports many kinds of Vietnamese flowers to export to other countries.

Singapore, Australia, and Saudi Arabia also import flowers from Viet Nam.

The main challenge of the flower industry in Viet Nam is distribution, according to Tri.

Though leading flower producers use refrigerated shipping services to preserve seedlings and bulbs, smaller companies and farming families cannot afford to send their flowers to market this way.

As a result, their produce can deteriorate during transportation.

Hai added that flowers were transported from Mekong Delta provinces, such as Sa Dec in the Delta to HCM City, by small boats.

Trucks were used to transport flowers from Da Lat to the city, he said

About 22 per cent of flowers were spoiled by the time they reach the city, he added.

"Flower preservation via shipping in the country is not good," he said.

His company has urged growers in the Netherlands to build two flowers distribution centres in Sa Dec and Da Lat. These would help reduce damage in shipping, Hai said.

The centres would also ensure markets for farmers, he said.

Tourism could also benefit from a more advanced flower industry, especially activities related to flower villages.

Masan's sales jump 90%, profits up 24% to $113m

Masan Group Corporation yesterday reported a revenue of VND30.6 trillion (US$1.37 billion) in 2015, as an increase of 90 per cent over the previous year, in HCM City.

The growth in 2015 was mostly contributed from consumption-related businesses, Masan said, and added that of the whole revenue, Masan Nutri-Science contributed VND14 trillion ($626.9 million). In which, the branded food and beverage businesses grew 4.7 per cent within the year, supported by the growth of 20.5 per cent of Vinacafe and three time bigger growth over 2014 of beer business.

Masan also reported a pro forma EBITDA (earnings before interest, taxes, depreciation and amortisation) ) of VND6.687 trillion ($299.1 million) for 2015, up 70.6 per cent over the same period last year. The group reported a net profit after tax of VND2.527 trillion ($113.1 million) an increase of 24.1 per cent over 2014.

According to the group, it made a $1.1 billion landmark partnership with Thailand's Singha Group to form a strategic partnership to better serve 250 million consumers in ASEAN with a broader portfolio of branded food and beverage products, in which Singha agreed to invest $1.05 billion in Masan Consumer Holdings (MCH) for a 25 per cent of stake and another $50 million in Masan Brewery for a 33.3 per cent of stake.

Overnight, Masan gains access to the Thai market with a strong partner, the first step in the group's greater objective of winning in Inland ASEAN including Viet Nam, Thailand, Myanmar, and Cambodia, in addition to Laos, whose consumers share similar tastes and preferences.

Established in 2000 in HCM City as a private enterprise, the group has worked in the food and drinks, banking and mineral mining sectors.

January PMI up as new orders increase

The Vietnamese Purchasing Managers' Index (PMI) increased to 51.5 in January from 51.3 in the previous month, according to a Nikkei report released on Monday.

Growth was maintained in the Vietnamese manufacturing sector during January as the output rose on the back of stronger increase in new orders.

Further deflationary pressures from global commodity markets led to faster reductions in both input costs and output prices during the month.

The reading signalled a second consecutive monthly strengthening of business conditions, with the health of the sector improving at a slightly greater pace than what was seen at the end of last year, it said.

New orders increased for the second successive month in January, and at a solid rate, which was faster than that recorded in December.

Firms reported that rising client demand had been the main factor leading to a rise in orders.

New export businesses also increased during the month, albeit at a weaker pace.

Input costs continued to fall last month, extending the current sequence of declines to seven months.

Moreover, the pace of reduction quickened from that seen in December, with panellists linking lower input prices to falling costs for commodities including oil.

Commenting on the Vietnamese Manufacturing PMI survey data, Andrew Harker, at Markit, which compiles the survey, said that the most pleasing aspect of the latest set of manufacturing PMI figures for Viet Nam was a quickening in the rate of growth of new orders at the start of this year, showing that local firms are still able to generate new business despite a challenging global environment.

"With the TPP trade agreement set to be signed later this week, thereby kicking off the ratification stage, 2016 could lead to further positive developments in the Vietnamese economy following a solid start to the year," Harker added.

Domestic lending drops off in January

Lending by January 20, 2016 declined 0.21 per cent against the end of last year, according to a report released by State Bank of Viet Nam (SBV) yesterday.

Despite the decline, the central bank said that lending in the first month this year was still more optimistic than the same period last year when the lending decreased 0.5 per cent.

According to experts, higher economic growth this year could push up the demands for capital.

Credit institutions have also been optimistic about the ability of businesses to take loans this year, according to a recent SBV survey.

Under the survey, the institutions expected outstanding loans to surge to 21.4 per cent on average, much higher than the 14.57 per cent forecast in the same survey in late 2014.

The central bank this year also targeted a credit growth of 18 per cent to 20 per cent, however, adding that the rate might be adjusted flexibly based on the actual situation, the same as in 2015.

In 2015, the central bank first targeted a credit growth rate of 13 per cent, but then adjusted it between 15 per cent and 18 per cent to meet the rising capital demands of the economy.

Under yesterday's report, the central bank also revised last year's official credit growth rate at 17.29 per cent, a little lower than the 18 per cent rate estimated at the end of December last year.

Last year, lending to the high-tech application sector, one of five prioritised sectors, surged sharply by 43 per cent year-on-year, seven fold higher than the average credit growth rate of the economy.

Loans to the agriculture and rural development sector, exclusive loans of the Social Policy Bank and Viet Nam Development Bank, last year also rose 13.32 per cent year-on-year.

Consumer electronics likely to boom

The consumer electronics market is set for a strong period of growth with many new stores opening amid a revival after a downturn, industry insiders forecast.

One consumer electronics company in the north, Tran Anh, has opened seven new outlets. PICO and Mediamart have also expanded by opening new stores in Ha Noi and northern provinces in January.

The biggest retailer in the south, The Gioi Di Dong (Mobile World) Joint Stock Company, said its electronics business is booming.

According to Tran Kinh Doanh, its CEO, there were 20 Dien May Xanh stores at the beginning of last year, and the number has increased to over 70 now.

Besides the mushrooming of outlets, chains also reported strong growth in 2015.

Doanh said his company's consumer electronics business last year grew at over 96 per cent to top revenues of nearly VND4.5 trillion (US$206 million).

Tran Anh reported growth of nearly 40 per cent in sales last year.

Research company GFK reported that demand for technology-based consumer goods including electronics grew strongly in the third quarter of 2015. In the period consumer electronics sales alone grew at nearly 20 per cent.

The industry expects growth to remain very strong.

A Pico spokesperson was quoted by business website cafebiz.vn as saying that 2016 would be a boom year for her company. It plans to open five more stores in Ha Noi, enter more northern provinces and, importantly, planning to go back to HCM City by mid-year.

Tran Anh plans to open more than 10 stores this year.

Mobile World told Viet Nam News that it plans to expand into all provinces and cities in the country by the second quarter of this year.

Doanh said: "The market will keep growing this year. Many products with advanced technologies will be introduced, attracting more customers.

"Moreover, there are a large number of households that don't have modern electronic gadgets like TVs and washing machines. But their living standard are improving. So the market will boom."

Central bank reverses weaker dollar trend

The central bank listed buying and selling rates for the US dollar yesterday for the first time in a month.

The State Bank of Viet Nam's head transaction office quoted the buying price at VND22,300 and the selling price at VND22,511 per dollar, in a bid to prevent the dong from strengthening further in the domestic market.

The last time the central bank listed dollar rates was December 31, when the buying rate was VND21,800 a dollar and the selling rate was 22,475.

It also raised the mid-point reference rate, whose trading band is plus or minus three per cent, by two dong at VND21,894 per dollar yesterday. This was the second consecutive rise of the rate this week, following Monday's 11 dong increase.

Following the central bank's moves, the dong weakened at commercial banks.

Vietcombank raised the rates by 95 dong yesterday morning, listing the buying price at VND22,260 per dollar and the selling price at VND22,330 per dollar.

The rates were 50 dong higher at Eximbank, which bought a dollar at VND22,230 and sold it at VND22,320.

At Techcombank, the buying rate rose by 60 dong to VND22,120 per dollar and the selling rate was 130 dong higher at VND22,250 per dollar.

Dollar rates fell significantly last month in both official and parallel markets, with commercial banks listing exchange rates that were up to VND300 lower than those recorded late last year.

The rates even hit three-month lows at between VND22,320 and VND22,390 per dollar in late January, despite a rise in the central bank's reference rate at that time.

SBV Monetary Policy Department Director Bui Quoc Dung attributed the reference rate rise to the impact of the global market, including the devaluation of the yuan, a decline in the Chinese securities market and a rise in US dollar value.

As for the decline in exchange rates at commercial banks, he said it was because of a positive response from the market to the new exchange rate policy, which had helped reduce dollar speculation in the domestic economy and encourage organisations and individuals to sell the greenback to banks.

He added that these developments had helped create good liquidity in the domestic foreign exchange market for the past few weeks.

Industry insiders said the central bank returning to quote the dollar rates yesterday could be translated as it was preparing to buy foreign currencies to compensate for the nation's foreign reserve, a significant amount of which had been sold for market intervention during the second half of 2015.

The central bank began applying a daily-adjusted "central rate" this year, instead of maintaining a fixed reference rate for a long period of time.

It said the new mechanism would enable it to ensure its management objectives, while letting the exchange rate move flexibly as per global monetary fluctuations.

VN strives to reform customs ahead of FTAs

The World Trade Organisation's Trade Facilitation Agreement (TFA) would boost customs reforms to facilitate trade across borders in line with international standards, an official has said.

This was important as the Southeast Asia economy was striving to hasten customs reforms riding on the hope of increasing exports as a number of free trade agreements (FTAs) were on the horizon.

Nguyen Toan, director of the International Co-operation Department under the General Department of Customs, said that the TFA, which includes provisions for expediting the movement and release and clearance of goods, would also create favourable conditions for Viet Nam to implement commitments in FTAs that the country had signed and was going to sign.

The modernisation of customs management would be hastened to speed up customs clearance and prevent losses for collection of import and export taxes, Toan said.

The TFA was adopted by the WTO members at the Bali Ministerial Conference in 2013. The agreement aimed to set out measures for effective co-operation between customs and other appropriate authorities on trade facilitation and customs compliance issues while enhancing technical support and capacity building in the area.

According to Toan, Viet Nam was 54th out of 64 WTO members which approved the TFA. The agreement would come into effect when it was approved by at least two-thirds of WTO members, or 108 member countries.

Still, Toan said the TFA would be a challenge to Viet Nam where 90 per cent of businesses were of small and medium sizes and trade frauds remained a headache.

He also pointed out that the lack of co-ordination among relevant ministries and organisations would also badly impact efforts to facilitate trade.

The General Department of Customs would set up plans to establish a steering committee to carry out the agreement's commitments, he said.

As of 2015, Viet Nam had trade relations with more than 200 countries and territories. With 14 impending FTAs, the country would have liberalised trade with 55 partners, promising prosper exports.

Viet Nam targeted to achieve an export revenue of US$187 billion this year, a rise of 10 per cent over 2015.

Under a project of development of regional markets, Viet Nam's export turnover was expected to touch $300 billion by 2020 with an annual average growth rate of 11 per cent to 12 per cent from 2015 to 2020.

Ha Giang anticipates pace of growth to hit 7.5 percent by 2020

The economy of the northernmost province of Ha Giang is expected to expand by 7.5 percent annually from now to 2020.

The objective was set in a socio-economic development plan approved by the Prime Minister on February 2.

Accordingly, local per capita income is expected to reach 30 million VND (over 1,340 USD), while annual trade revenue will reach 600 million USD by 2020. The rate of deprived households should also fall below 5 percent.

The plan expects Ha Giang’s economic growth rate to rise to 8.5 percent between 2021 and 2025, and 9.5 percent between 2025 and 2030.

The proportion of services in the local economy is set to increase from 38 percent by 2020 to 41 percent by 2030. Meanwhile, agriculture and industry-construction will respectively account for 33 percent and 29 percent by 2020, and 25 percent and 33 percent by 2030.

The province should also provide 18,000 jobs every year and expand forest coverage to 60 percent by 2030.

In the next few years, more high-yield plant varieties will be cultivated – especially wet rice, hybrid maize and other crops suitable to the local climate. The processing industry will also be developed to create competitive agricultural products. Animal husbandry will be improved and is expected to become the province’s main agricultural endeavour.

Notably, ecological, cultural and community tourism will be expanded to optimise the natural, historical and cultural features of Ha Giang.

The industry will hold an important position in the local economy by 2030 to help the province draw more tourists.

Ha Giang is a mountainous locality that shares 274km of land border with China’s Yunnan and Guangxi provinces.

Among the roughly 750,000-strong population of 22 ethnic groups, ethnic minorities account for up to 88 percent. H’Mong people are the most populous ethnic group there.

The province also boasts a number of stunning beauties, including Dong Van Karst Plateau Geopark, Hoang Su Phi terraced rice fields, and Dong Van ancient town.

Real estate inventory drops as market deals taper off

The real estate sector reported a reduction of 1.75 trillion VND (77.8 million USD) in inventory in January from last month to an estimated value of 49.1 trillion VND (2.2 billion USD).

The Department of Housing and Real Estate Management under the Ministry of Construction said that vibrant transactions in the real estate market have tapered off in property inventories in the month.

The highest inventories were recorded in residential land with over 6 million square metres (sq.m) worth more than 20.8 trillion VND (924.4 million USD), followed by town houses with 7,474 units valued at 13.27 trillion VND (589.8 million USD). Unsold apartments were calculated at 7,520 units worth 10.6 trillion VND (471 million USD) while that of commercial land was at over 1.5 million sq.m, equivalent to nearly 4.4 trillion VND (195.5 million USD).

Unsold properties in HCM City were valued at 9.5 trillion VND (242.2 million USD), a decline of 621 billion VND from December 2015. Most of the inventories were seen in the apartment segment with 3,952 units (6.7 trillion VND), townhouses with 399 units (1.1 trillion VND) and residential land with 265,000 sq.m (1.2 trillion VND).

Meanwhile, Hanoi saw a total inventory value of 6.56 trillion VND (291.5 million USD), falling 191 billion VND from the previous month, mainly in townhouse inventory with 2,129 units worth 6.26 trillion VND. However, thanks to good liquidity, low inventory was reported in the apartment segment with 268 unsold units worth 299 billion VND.-

Vietnam plans to realise new trade agreement with Laos

The Prime Minister has signed a decision to issue a plan that will realise a new trade agreement between Vietnam and Laos.

The plan asks for the establishment of a working group in charge of monitoring the agreement, the issuance of circulars guiding the special preferential tariff on goods from Laos, trade facilitation, smuggling combat and integration support, among others.

On March 3, 2015, Minister of Industry and Trade Vu Huy Hoang and Lao Minister of Industry and Commerce Khemmani Pholsena signed a Vietnam – Laos bilateral trade agreement to update and replace the existing one signed in 1998.

With six chapters and 16 articles, the deal commits to removing tariffs on 95 percent of Lao exports.

It will come into force once the two countries conclude the hand-over of diplomatic notes affirming the completion of necessary internal procedures.

The national fuel price stabilisation fund had over 3.97 trillion VND (180.4 million USD) as of December 31, 2015, according to the Finance Ministry on February 2.

By January 1, 2015, the balance was over 4 trillion VND (181.8 million USD).

The ministry reported that among 21 fuel trading firms, 17 recorded positive balances in their own stabilisation funds.

The Vietnam National Petroleum Group (Petrolimex) has the largest balance with 2.377 trillion VND (108 million USD), followed by the Military Petroleum Corporation that possesses more than 389 billion VND (17.68 million USD).

The PetroVietnam Oil Corporation posted over 325 billion VND (14.7 million USD) while Saigon Petro had more than 291 billion VND (13.2 million USD).

The Nam Viet oil refinery and petrochemicals company took the lead in running a negative balance, amounting to over 25 billion VND (1.13 million USD)

Last year, there were 23 adjustments to fuel prices with more decreases than increases. Specifically, petrol prices had 12 decreases, six increases and stayed the same five times, Deputy Minister of Industry and Trade Do Thang Hai told the media.

New agricultural products all the rage ahead of Tet

Vegetables grown in Da Lat using seeds imported mainly from Japan and the US and using high technology are becoming a big hit with customers for their quality and safety.

They are all grown to VietGap standards using drip and spray irrigation and other techniques.

TuoiTre (Youth) newspaper quoted Ngo Phuong Thao, Director of Thom Food Company, as saying her company has received more than 200 orders for tomatoes and other vegetables.

All information about the products, including variety and growing standards, is on the packaging, she added.

Nguyen Cong Thua, General Director of Anh Dao Cooperative, said more than 500 Tet gift hampers to be delivered by his cooperative on orders will have these vegetables.

The new mini vegetables will make up 30 tonnes out of around 6,000 tonnes of agricultural products meeting VietGap standards his co-operative plans to supply to Co.op Mart for Tet, he said.

Since they are still new to customers, they carry careful directions on the packaging, he said.

According to Nguyen Thi Dien Thuy of Phong Thuy vegetable farm in the Central Highlands province of Lam Dong, besides supermarkets, small stores supplying vegetables to restaurants also order the new products as do small traders selling gift hampers at traditional markets.

The products are popular at supermarkets and agricultural retail stores.

Da Lat now has around 100ha of land cultivating under 50 varieties of mini vegetables like tomato, carrot, beetroot and others, according to the Da Lat Department of Economics.

Nguyen Van Luc, head of the Lam Dong province’s agricultural-forestry-fishery quality inspection agency, revealed that many surprise inspections of farms failed to find any samples of the new products with excessive residues of plant protection chemicals.

Besides, all the fertilisers used were biological, he added.

At least 50 new flower varieties grown using high technology in Da Lat will be also supplied for Tet.

While they are flowers traditionally preferred during the New Year like daisy, rose, gerbera, and lily, they are cross-bred to get unusual colours and sizes and grown in glass houses.

Lam Dong has more than 2,000ha growing flowers, with the new varieties accounting for 30 percent, according to its Department of Agriculture and Rural Development.

The plants have begun to bud.

According to growers, each pot of the new flowers is sold for between 30,000 VND-100,000 VND (1,33 USD-4.44 USD).

Tran Huy Duong, Director of Lang Biang Farm Company Limited, said his company decided to import the Japanese daisy because it is disease-resistant unlike domestic varieties.

But the company plans to supply 20 different kinds of flowers of which half will be daisies of different colours like yellow, red, white, and blue.

Nguyen Van Bao, Deputy Director of Agrivina Company Limited, said his company imported only from reputed global bio-tech companies, which have a large flower gene bank.

According to DaLat flower producers, the flowers will hit the market 10 days before Tet which falls on February 8, including HCM City and the rest of the southern region.

HCM City reviews socio-economic development in January

The Ho Chi Minh City People’s Committee hosted a conference on February 1 to review its socio-economic development and state budget during January and map out the main tasks for next month.

According to the municipal People’s Committee, total retail sales of goods and services in January reached an estimated 64.69 trillion VND (2.9 billion USD), up 4.1 percent from last month and 12.7 percent year-on-year.

Exports, excluding crude oil, are forecast to reach 2.26 billion USD, an increase of 6.4 percent against the same period last year, while imports are estimated at 2.86 billion USD, a slide of 6 percent from the previous month but a year-on-year expansion of 9 percent.

Support policies have shaken up investment in the city, with the number of newly-registered businesses rising 30 percent year on year to more than 1,900 with a combined capital of over 11 trillion VND (496.7 million USD).

About 2,770 companies added nearly 16.37 trillion VND (734 million USD) to their registered capital, up 8.4 percent and 68.4 percent respectively compared to the corresponding period last year.

Some 44 foreign investment projects, worth 116.9 million USD, were newly authorised by the city in January, up 91.3 percent and down 64.5 percent respectively, while 34 million USD was added to 11 operational projects. Total foreign investment landing in the city during the month totalled 150.9 million USD, a drop of 41.5 percent.

International tourist arrivals in the city rose by 8 percent year on year to 445,500 during the first month of 2016, earning it approximately 8.34 trillion VND in revenue, up 7 percent.

Chairman of the city’s People Committee Nguyen Thanh Phong has asked departments as well as communal and district authorities to work hard to prepare a united, safe, joyful and cost-saving Tet holiday for all residents.

The city is focusing on stablising prices of primary goods both before and after Tet, while management will be enhanced to prevent speculation and ensure food safety and hygiene.

Bui Xuan Cuong, director of the municipal Department of Transport, said the city will provide sufficient vehicles to meet the surging travel demands during the peak season when people rush to return to their hometowns to celebrate Tet with their families.

Pre-Tet supplies this year are 10 percent more than targeted and up 40 percent year on year, Deputy Director of the city’s Department of Industry and Trade Nguyen Ngoc Hoa noted, adding that it will satisfy market demand for the holiday.

Deputy Chairman of the municipal People’s Committee Le Van Khoa urged banks to monitor their ATMs to avoid any unwanted breakdowns. Firms must also make full payments of salaries and bonuses to their workers, he said.

Regarding the key task for February, Phong said relevant bodies should work closely with local enterprises to learn firsthand about their difficulties, particularly in terms of administrative procedures, and create a better business climate for them.

Hanoi to host Manufacturing Expo 2016

The Vietnam Manufacturing Expo 2016 will return to the capital city in April, the event's organiser Reed Trade Company has said.

With the participation of 200 brands from 20 countries, this event was expected to sharpen and drive the supporting industry of Vietnam to keep up with or lead the change that the promising future of the ASEAN Economic Community (AEC) and the Trans-Pacific Partnership (TPP) would bring, the Thai company said in its statement.

Duangdej Yuaikwarmdee, Deputy Managing Director and General Manager Vietnam of Reed Tradex Co, said the forthcoming expo was a good opportunity for the participating enterprises to expand their markets for machinery and know-how, with 10,000 quality buyers who would actively seek new machinery, materials and chemicals, and measuring, control and test equipment, besides parts and components that would best fit their operational needs.

The expo would also allow Vietnamese industrialists to network with global providers of machinery, technology and solutions, and encourage Vietnamese small-to-medium enterprises to improve competitiveness to prepare for receiving investments after the implementation of the TPP and the AEC, Reed Tradex said.

The expo will be organised along with Sheet Metalex Vietnam 2016, the country's first-ever exhibition of sheet metal fabrication technology and machinery.

The two expos will run from April 6 to 8 at the Hanoi International Centre for Exhibition.

VietJet Air launches Hanoi-Taipei route

The low-cost Vietnamese airline VietJet Air yesterday launched its inaugural flight between Hanoi and Taipei (Taiwan-China)..

The new route was put into operation right before the New Year Lunar holidays in order to meet the increasing travel/business demand from the two countries. The new route is also to ease the travel of people, who have lived and worked for a long time in Taiwan (China), to unite with family members for Tet holidays.

With the Lunar New Year just around the corner, Vietjet’s flights are filled with joy and surprises as passengers were presented with free gifts and took photos with Vietjet’s beautiful cabin crew on the flight. At the Taoyuan International Airport, a lively Flash-mob dance crew welcomed passengers and interacted with passers-by to spread Vietjet’s holiday spirit to all.

The flight between Hanoi and Taipei takes 2 hours and 40 minutes one way, and is operated every Monday, Wednesday and Thursday. Flight VJ5972 will depart from Hanoi at 15:10 and arrive at Taipei at 18:50(local time). The return flight VJ5973 will depart from Taiwan’s capital city at 19:50 and arrive in Hanoi at 21:30 (local time).

Central bank buys dollars

The State Bank of Vietnam (SBV) on February 1 bought the U.S. dollar at VND22,300 a dollar, the first such move after many months of selling the greenback, said lenders who sold dollars to the central bank.

In the morning, the dollar price at banks dropped strongly to VND22,190-22,200 for buying. But in the afternoon, after the central bank announced to buy dollars, banks revised up dollar buying and selling prices to VND22,200 and VND22,240 respectively.

On the informal market in HCMC, the dollar was bought at VND22,280 and sold at VND22,300 a dollar.

The SBV was expected to buy around US$300 million on February 1. According to a major bank, many lenders registered to sell dollars but not all of them could transact with the central bank.

The SBV carefully checked the foreign exchange positions of banks before transactions to prevent speculation as the Vietnam dong has strengthened against the dollar given ample dollar liquidity in recent days, the source said.

A representative of a bank said the lender registered to sell US$250 million but the central bank did not acquire the entire sum.

The central bank was cautious as aggressive dollar purchases would inject huge volumes of the domestic currency into the system, resulting in an imbalance between dong supply and demand.

However, dong demand is growing strong as there is always a spending spree in the pre-Tet (Lunar New Year) period.

Foreign currency supply has surged in the past two weeks as seen in previous years, sending the dollar price down to VND22,250 from VND22,500. Overseas Vietnamese  have returned home for Tet celebration, carrying along large amounts of foreign currency. According to the central bank, incoming remittances in 2015 were put at US$12-13 billion.

Second, some exporters with foreign currency income have sold dollars after the central bank has introduced three-month dollar forwards contracts to commercial banks. On December 31 last year, the central bank sold around US$1 billion to credit institutions, gauging the foreign exchange market and easing dollar hoarding.

Besides, Masan Group got US$650 million from selling shares to a Thai partner, pushing up dollar supply on the market.

An ongoing shift from foreign currency to Vietnam dong deposits is looming as individuals now get no interest from their dollar deposits.

Dollar hoarding has eased after the central bank warned of possible strong measures such as financial sanctions, conversion of dollar deposits into dong, and compulsory reserves of foreign currency amounts that exceed the mandatory foreign currency holdings at banks.

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