45 countries recognise Vietnam’s market economy status

Vietnam has, to date, received recognition of its market economy from 45 countries across the world, with Oman being the latest, according to the Ministry of Industry and Trade.

This reflects the international community’s acknowledgement of Vietnam’s efforts to reform its economy and foster international economic integration, encouraging other countries to make a similar assessment of Vietnam’s economy.

In the time ahead, the Vietnamese Government will continue providing explanations of its market economy for several partners, including the US, the European Union, Canada and Mexico.

Under the commitments to the World Trade Organisation, Vietnam agreed to have its economy considered as a non-market economy in anti-dumping cases. However, partners who recognise Vietnam’s market economy status will stop applying “non-market” status to Vietnam.-

Vietnam, Customs Union conclude 5th FTA negotiation round

After striving for months to prepare the ground for an ambitious trade and investment deal, Vietnam and the Customs Union of Russia-Belarus-Kazakhstan will complete their 5th round of substantive talks by April 4.

Vietnamese Minister of Industry and Trade Vu Huy Hoang and Eurasian Economic Commission Trade Minister Andrey A. Slepnev will attend a ceremony marking the end of negotiations on the free trade agreement (FTA) in Allmaty city, Kazakhstan and are expected to announce they anticipate signing the agreement by early next year.

This round is of great significance as it finalizes the legal foundation for the agreement and has broken through the key technical barriers for which the parties were at an impasse, officials said.

In this latest round, the parties focused their discussions on hammering out the key trade issues including rules of origin, customs-related issues, sanitary and phytosanitary measures, investment, government procurement, institutional legacy, and dispute resolution procedures.

In earlier rounds, negotiators convened in Vietnam to craft the detailed fundamentals related to the establishment of the agreement following in strict compliance the protocol and guideline promulgated by the World Trade Organization (WTO).

In addition to reducing the imposition of taxes on imports and exports between the parties, the agreement is expected to specifically offer more favourable conditions for cooperation in the banking and transportation sectors, delivering more jobs and economic growth for all sides.

Vietnam still has a few lingering concerns over problems arising from its seafood exports to the Russian market that still need to be resolved, officials cautioned.

Dang Hoang Hai, head of Vietnam’s technical negotiation delegation, and Eurasian Economic Commission representative Andrey Totrin said they greatly valued the persistent efforts by Vietnam and the Customs Union, expressing hope that differences between the two sides will be addressed so that the FTA will be signed early next year.

Economists forecast that the FTA will help Vietnam and Customs Union members achieve a significantly higher trade turnover, predicting it to raise to over US$10 billion by 2020.

Credit growth reaches 11.59 percent in Q1

Vietnam’s credit growth in the first quarter of this year reached 11.59 percent compared to the corresponding period last year, leading to investment expansion and a boost to the country’s economic growth, the State Bank of Vietnam reported on April 2.

The central bank further said that there is a high possibility that the banking system will be able to fulfil this year’s target of 12-14 percent credit growth.

The credit growth in March stood at 1.35 percent, compared with a decrease of 0.55 percent in January and 0.65 percent in February.

The credit system is witnessing positive signs as it is transitioning towards the Government’s prioritised sectors. By the end of January, credit for exports had risen 1.28 percent year-on-year, while those for support industries and high technology application businesses stayed at 1.73 and 0.41 percent, respectively.

The central bank explained that the credit increase remained slow due to the low loan demand of local businesses in the first months of the year, the weak capital absorption capacity of the economy, state budget insolvency and the ineligibility of several enterprises to access loans.

Deputy PM urges seafood policy review

Deputy Prime Minister Vu Van Ninh on April 2 called for a review of the nation's policies on aquaculture, seafood processing and support for offshore fishing.

Chairing a meeting on fisheries development in Hanoi, he asked relevant ministries and State agencies to suggest appropriate revisions to the policies so that timely amendments can be made.

He also asked them to improve logistics for the fisheries industry, reorganise funding to make it more efficient, and initiate easier access to preferential credit of offshore fishermen.

A modern centre with shipbuilding and ship repair services should also be considered, Ninh said.

Over the last two decades, seafood production has emerged as one of Vietnam's key industries, enjoying rapid growth and earning significant export revenues.

The industry has helped create jobs for four million workers and helped improve the lives of people while contributing to the national security of islands and sea territories, the meeting heard.

Speakers at the meeting said that Vietnam was on the right track to become a leading country in tra fish farming and export. The country already ranks third in shrimp production and is listed among the world's four largest seafood exporters.

Vietnam's seafood products are now available in 160 countries and territories, the meeting heard.-

Sugar association asks for export relief

The Viet Nam Sugar and Sugarcane Association has requested regulatory agencies to apply a flexible system to sugar exports, especially at Lao Cai Province's Ban Vuoc-Bat Xat border.

The request was made in the hopes that a more relaxed system of regulations would better facilitate domestic businesses.

Under current regulations, businesses must comply with Circular 06/2012/TT-BTC, which requires firms to present sales contracts as well as bank payment slips for exports. These requirements, however, made both domestic and foreign businesses hesitate to export or import sugar, the association said.

Imports of completely built units hit local car sales

Viet Nam imported 10,100 completely built units (CBU) cars worth US$180 million in the first quarter, up 44.1 per cent in volume and 32.2 per cent in value year-on-year.

This estimate was furnished by the General Statistics Office (GSO).

Most of the car imports were luxury sedans and sport utility vehicles, according to the Custom Office.

The increasing number of car imports in the recent months has impacted the market of the locally assembled cars, which has been showing a downward trend.

According to the Viet Nam Automobile Manufacturers Association (VAMA), local car makers sold 4,509 units in February, down 46 per cent over the corresponding period last year.

Industry insiders claim that the struggling Viet Nam's car manufacturing industry has already started importing vehicles well before the country is slated to join the ASEAN Free Trade Area (AFTA) in 2018.

Moreover, in 2013, there was a marked increase in the imports of CBUs. As many as 34,500 CBUs, valued at $709 million, were imported, marking an increase of 25.9 per cent in volume and 15.2 per cent in value, year-on-year.

When the presently applicable high taxes drop to zero in 2018, cars from ASEAN countries are expected to flood the Vietnamese market.

Imports of vehicles are expected to increase in 2014 after a 50 per cent reduction in the import tax on cars from ASEAN countries, effective from January 1, this year.

The tax cut is in compliance with Viet Nam's signing the ASEAN Trade in Goods Agreement (ATIGA).

Statistics by the Customs Office revealed that 8,826 cars, valued at nearly $150 million, were imported from Thailand and Indonesia in 2013, more than double the imports during the same period in 2012.

Ministry to crack down on mineral exports

Minister of Industry and Trade Vu Huy Hoang has said he will work closely with local administrations to stop illegal exports of minerals by 2015.

Replying to questions at a National Assembly session on Tuesday, he said illegal mining and exports of ores persist in some provinces and cities, causing substantial losses to the Government as well as affecting the environment.

Deputy Ma Dien Cu from the central province of Quang Ngai blamed it on poor official oversight, and demanded drastic solutions from the ministry to resolve the problem.

Hoang said minerals are valuable resources and should be used optimally and exported only in processed form.

The Government's Resolution No. 2 requires mining firms to process minerals and prohibits exports of ores.

Hoang said many firms were licensed in 2012 to mine ores and their stockpiles have been building up, forcing officials in provinces to obtain Government permission to export inventory they had mined before the resolution took effect.

But some businesses have taken advantage of this to illegally export minerals.

Hoang said his ministry would work with the Ministry of Environment and Natural Resources and local authorities to crack down on illegal exports by 2015.

Stable price programme opens

Authorities in HCM City have officially begun the annual price-stabilisation programme that will run from April 1 until the end of March next year.

Under the programme, essential goods – food and foodstuff, milk, medicine and school supplies – are offered by participating companies at lower than market prices.

This year, the programme includes 76 enterprises, an increase of 12 firms over last year, according to the city's Department of Industry and Trade.

Banks that take part in the programme offer lower interest rates on loans for participating companies.

As of today, banks have signed agreements to provide total loans of VND8.3 trillion (US$392.99 million) to businesses in the programme, a figure four times higher than last year, said Le Ngoc Dao, the department's deputy director.

The annual interest rates are 5.5-6 per cent for short-term loans and 7-10 per cent for medium- and long-term loans.

Of the figure, VND3.35 trillion ($158.6 million) will be allocated for loans with a 7-8 per cent interest rate to producers, especially food and foodstuff production co-operatives that supply goods to firms participating in the programme.

Participating companies were asked to prepare sources of goods that will be 30-35 per cent higher than what was registered last year, and that meet 25-40 per cent of market demand.

Like previous years, the programme this year would see participating businesses sell at 5-10 per cent lower than market prices, she said.

Companies can hike prices if their costs increase by 5-10 per cent, but they would have to get approval from the city's Department of Finance.

Nguyen Thanh Nhan, deputy general director of Saigon Co.op, which has taken part in the price stabilisation programme for nearly 10 years, said the programme had brought practical benefits to consumers, especially low- and middle-income earners.

The company will focus more on developing its distribution network to enable more consumers to access stabilised goods, he said.

Meanwhile, Van Duc Muoi, general director of Vissan, said businesses had felt more secure about accessing capital, and the lower interest rate had also helped them reduce production costs and become more competitive.

Like last year, and in line with the campaign slogan, "Vietnamese people give priority to using Vietnamese goods", price-stabilised goods made in the country will be prioritised over imported products and products must be of good quality, said Nguyen Thi Hong, deputy chairwoman of HCM City's People's Committee.

The city has also launched a logo to label stabilised goods this year to help customers recognise price-stabilised goods more easily, which will help extend the programme's benefits to more residents, she said.

Conference discusses ways to step up SOE restructuring

Domestic managers and business executives discussed ways to restructure centrally-run State-owned enterprises (SOEs) at a conference in Hanoi on April 2.

Reports at the conference said among the 32 economic groups, corporations and banks under the direct management of the central government, 28 are required to build their restructuring plans during the 2011-2015 period. By now the plans of 24 groups, corporations and banks have been approved, under which all of them will be re-organised in the form of holding companies. The four remaining enterprises have also submitted their plans and are awaiting approval.

Of the 24 groups and corporations, the State will hold 100 percent of charter capital of 15, while nine others are to be equitised.

Equitisation process has been completed at the Bao Viet Group, the Vietnam National Petroleum Corporation and the Vietnam Steel Corporation, the conference heard.

The Vietnam National Textile and Garment Group and Vietnam Airlines will be equitised this year, while four others are scheduled for 2015.

In 2013, centrally run SOEs contributed 297 trillion VND (13.95 billion USD) or 36.6 percent of the year’s national budget collection, delegates noted.

At the conference, the bloc put forth measures to accelerate the restructuring of its businesses and banks between 2014 and 2015, focusing on completing equitization, withdraw investment from non-core business operations and sell unnecessary State-owned stakes.

Addressing the event, Deputy Prime Minister Vu Van Ninh reiterated the importance of the State economic sector, especially State-owned enterprises (SOEs), to stabilising the macroeconomic situation and promoting national socio-economic development.

To this effect, he required that SOEs rearrange themselves to raise the effectiveness of their operation in order to compete on a fair playground with other economic sectors in the market mechanism.

Hanoi to host Vietnam Expo 2014

More than 600 local and foreign businesses from 23 nations and territories around the globe have registered to attend the 24th Vietnam International Trade Fair (Vietnam Expo 2014) scheduled for Hanoi on April 16-19.

At a press conference in Hanoi on April 2, Regional Director of the Associated Chamber of Commerce and Industry of India (Assocham), D.S. Ragia said that this is the fourth time the Indian business community is participating in the event.

He expressed his hope that the Indian business community and Vietnam will develop a long-term mutually beneficial economic relationship.

This year’s event themed “Cooperation towards ASEAN Economic Community” aims to serve as a bridge to bolster cooperation and trade among the ASEAN, including Vietnam, and nations from throughout the world.

Investment into HCM City rockets by 90 pct in Q1

Ho Chi Minh City attracted 277.45 million USD of investment in the first quarter of 2014, shooting up over 90 percent from the year before, according to the HCM City Export Processing and Industrial Zones Authority (Hepza).

Hepza office manager Ho Xuan Lam said many of the large projects are funded by domestic investors, for example an 11.2 million USD pharmaceutical project and another producing calcium carbonate worth 4.8 million USD.

Meanwhile, some notable foreign investments include a 4 million USD plant making electronic components and a 2.3 million USD factory producing electric motorcycles.

Lam said Hepza always encourages the business circle to invest in high-tech projects and support industries that the city is prioritising.

In Q2, Hepza plans to assist the Vietnam – Japan Techno Park project, work harder to attract Japanese enterprises and accelerate the construction and expansion of the An Ha, Dong Nam and Tan Phu Trung industrial parks.-

Int’l investment in HCM City at all time high

HCM City officials has announced that total investment from international sources in its 15 industrial and processing zones surged to US$244 million during the first quarter of 2014.

Speakers at an April 2 conference on industrial and processing zones’ operations, reported that currently the industrial and processing zones are 64% occupied and have roughly valid 1,300 projects with a total pledged investment in excess of US$8 billion.

The projects grossed a record setting export turnover of US$955 million during the first quarter.

Speaking at the event, Ho Xuan Lam, chief of HCM City Export Processing and Industrial Zones Authority (Hepza) management board office, underscored that the top priority for future projects will be given to infrastructure development.

HCM City aims to prioritise investment in four key sectors – food processing; pharmaceuticals and chemicals; mechanical engineering; and electricity and electronics that help boost the city’s economic restructuring process, he said.

Vietinbank expands to Laos

The Viet Nam Joint-Stock Commercial Bank for Industry and Trade (VietinBank) has opened a transaction office in Pakse town in the southern Laos province of Champasak.

The move is designed to boost the bank's long-term investment and operations in the country.

During the opening ceremony late last week, Chairman of Vietinbank Board of Directors Pham Huy Hung said his bank opened the first branch in Laos in 2012, noting that the branch's income reached US$3.46 million last year, including $800,000 in after-tax profits.

Admin reforms aim to secure links with Japanese investors

The capital city will hasten reforms in paperwork and create favourable conditions to boost the confidence of Japanese investors and attract further investment.

Mayor of Ha Noi People's Committee Nguyen The Thao on Thursday delivered this message in a meeting with 120 Japanese investors who have run 520 projects worth US$4.6 billion in registered capital.

To this end, the city has set up the Japan Information Desk, which, starting next month, will serve as a common hub between municipal authorities and Japanese investors to promptly solve investment problems.

The decision followed a survey by the Ha Noi Statistics Office that showed the negative sentiment of Japanese investors towards administrative procedures in the city.

About 10 per cent of the 200 Japanese companies that participated in the survey said the process of granting investment or enterprise establishment certificates was troublesome in practice. In addition, 13 per cent pointed to difficulties in approaching land sources, and 18 per cent were not satisfied with current taxation, fees and price administration.

Foreign direct investment (FDI) from Japan accounts for 22 per cent of the total FDI in the city and creates jobs for 130,000 labourers. Japanese enterprises contribute VND2.3 trillion ($109 million) to the city's budget every year, equivalent to 61 per cent of total budget payments from foreign-invested enterprises in the city.

Ha Noi plans to primarily attract more investment from Japan in high-tech projects, industrial projects and the processing industry. High-quality services, including finance, banking, healthcare and human resources, are also seen as potential areas for Japanese investment.

Hideo Okubo, Chairman of Forval Corp, told the meeting that many Japanese small- and medium-sized enterprises in auxiliary industries were heading to Viet Nam to take advantage of cheap labour sources.

He said that a supportive infrastructure, favourable administrative procedures and a skilled labour force would be necessary to attract investment.

In fact, low-cost labour is one of the advantages, with each worker receiving on average $3,000 per year in 2013, one eighth of what Japanese companies pay their employees in Singapore and half what they pay in Thailand. However, it is still a matter of concern that investors find administrative procedures in the city burdensome.

A recent survey conducted by the Japan External Trade Organisation (JETRO) revealed that up to 70 per cent of Japanese businesses plan to expand their operations in the Southeast Asian country.

Japanese businesses currently focus their investment on processing and production on a small and medium scale, but they also have their eye on the high-tech sector.

In Viet Nam, according to statistics released by the Foreign Investment Agency under the Ministry of Planning and Investment, there were 2,103 Japanese-invested projects worth $34.5 billion in 2013.

With the amount of added capital climbing from $1.2 billion in 2012 to $4.5 billion in 2013, Japan has maintained its number one position among 100 countries and territories investing in Viet Nam.

Global excess hits rubber exports

For the third consecutive year, local rubber enterprises have suffered losses because of limited exported markets and abundant supply on the market.

According to the Viet Nam Rubber Association (VRA), by the end of February, Viet Nam had exported over 100,000 tonnes of rubber, earning US$220 million, a drop of 23 per cent in quantity and 42 per cent in value compared with the same period last year.

China and Malaysia are two major markets for rubber export but this year, they cut their purchases, causing prices to fall.

This year, Viet Nam exported 41,657 tonnes of rubber, a drop of 40.7 per cent, to China, and 16,985 tonnes, with a drop of 28.6 per cent, to Malaysia.

The current price for rubber exports is about $2,000 per tonne, a fall of $300 in comparison with 2012 and a drop of $800 compared to 2011.

Last year, over 1.1 million tonnes were exported at a cost of over $2.5 billion, an increase of 5 per cent in quantity but under 12 per cent in value.

VRA had expected the price of rubber to go up in 2014 to $2,500 per tonne.

Meanwhile, the global market will have over 353,000 tonnes of surplus, according to the RCMA Commodities Asia Pte.

This is the third consecutive year that the global rubber market has faced and oversupply of rubber, with an increase of more 16 per cent, up to 2.5 million tonnes, compared to the same period last year.

In addition, the Viet Nam Rubber Group (VRG) said that most rubber companies in the Central Highlands provinces depended on the Chinese or local market.

A huge quantity of rubber has been exported through border gates in Lao Cai or Ha Giang provinces between Viet Nam and China.

"When there is less rubber crossing border gates, Chinese traders often offer a high price but when it increases, they will pay a lower price, causing high risk for companies," a staff member of VFG said.

To reduce risks, the general director of VRG Tran Ngoc Thuan has asked all Central Highland and central provinces' rubber companies to only transport rubber to Hai Phong after clients have made a reasonable deposit and to look for more markets other than China.

"Increasing the quality of product is the only way to allow rubber companies survive because only a good brandname company will be able to sign contracts," Vo Sy Luc, chairman of VRG management board, was quoted as saying in the Sai Gon Giai Phong (Liberated Sai Gon) newspaper.

Each company should have short-term product and market strategy and prepare for a long-term one, he added.

VRA also predicts that in the next few years, supply will increase; therefore, the quality of product and a diversified market will be vital factors.

Finished homes lure consumer interest

Every time he thinks of the apartment that he bought four years ago, Nguyen Hoang Dat feels disappointed and regretful.

Dat of HCM City's Tan Binh District paid for an apartment that was under construction in Nha Be District, dreaming of moving in in 2012. But now, two years past the scheduled completion date, he still has to get his apartment. Many arguments later, "they are still completing it," he said.

If he could start afresh, he would choose a completed project because he is now very "tired," he said.

Dat is just one of many people who are disappointed and tired by property projects that have become overdue or are of low quality.

As a result, many buyers now prefer houses and apartments in finished projects, sparking a new trend in the property market, a trend predicted to only grow with the entry of deep-pocketed developers, who can afford to wait until construction is finished to sell.

Speaking to Viet Nam News, a spokesperson for Khang Dien House Investing and Trading Company Ltd, which has been in the market for more than 10 years, said most of her company's finished projects sold well.

She cited the examples of a 160-house project in District 9 in which over 30 per cent was sold soon after it hit the market at the beginning of this month and a project with 29 houses which sold out in just a month last year.

Other developers' projects like Green Life in Binh Chanh District, South Sai Gon Riverside, and Ehome 4 Sai Gon in neighbouring Binh Duong Provinvce have been ready for investors.

Buying a finished house or apartment comes with the obvious advantage of allowing buyers to examine the quality before buying.

Seeing the preference for ready-to-occupy housing, many companies said they would adopt a similar strategy.

The Khang Dien spokesperson said her company planned to build more houses and would sell them in the next two or three years.

Discussing the trend, the general director of La Ban Real Estate Company, Ngo Huu Truong, told Sai Gon Times newspaper that it was unavoidable if buyers' faith was to be restored, especially since the market remained in a slump.

Buyers were now very careful and did not trust what they see in advertisements, he said, adding that with completed projects, they could check the quality and other services offered before parting with their money.

Hoang Anh Tuan, general director of Tac Dat Tac Vang Company, said most people looking to buy now were doing so for their own use and so were very concerned about quality.

Work starts on e-business centre

The Ministry of Industry and Trade has begun construction of an Electronic Business Promotion Centre in the central city of Da Nang.

This will be one of three such centres that will be set up to boost e-business among enterprises in the central region.

The centre in Da Nang, which includes a 5-storey and a 25-storey building constructed at a cost of VND390 billion (US$18 million), will help support and train personnel in e-business as well as designing websites and setting up databases for the region. The centre will open in the first quarter of 2015.

Commercial housing goes social

The Construction Ministry's latest report revealed that 57 commercial housing projects have requested a change of status as a social housing project, potentially adding 34,837 apartments to the market.

Of these, 21 social housing projects, with 11,408 apartments, are in Ha Noi, while the registration of another 62 projects will increase the number of apartments from 31,999 to 40,500.

The capital city accessed 40 projects, with 10,587 apartments. It has also started the construction of 15 additional social housing projects.

Ha Noi skyscraper to open doors

The second tallest building in the capital, Lotte Centre, is set to be officially inaugurated on September 2.

Built in a strategic location in Ba Dinh District, the 65-storey complex comprises a premium department store, a 320-room hotel, 258 luxury serviced residences, a hypermarket and an observatory deck.

During its 17 years in Viet Nam, Lotte has continually invested in food and confectionery with Bibica confectionery, Lotte Viet Nam Limited Company, Lotteria Viet Nam and Lotte Viet Nam Shopping. The company also has business interests in Lotte Cinema Viet Nam and Lotte Construction.

Gamuda Gardens hands over houses

Gamuda Land Viet Nam, the developer of Gamuda Gardens, yesterday in Ha Noi organised the House Handover ceremony of Gamuda Gardens Phase I, including 364 semi-detached and terraced houses.

The construction has finished six months ahead of schedule and meets high-quality requirements. The houses are ready to be handed over to customers from April 2014.

364 units of Semi-Detached and Terraced Houses of Gamuda Gardens Township, Phase I have been 100% completed.— VNS Photos

"This event marks a significant milestone in the development of Gamuda Land Viet Nam and is a testament to our long-term commitment to customers who have joined hands with us to develop a dynamic and vibrant community in the south of Ha Noi," said Cheong Ho Kuan, general director of Gamuda Land Viet Nam.

Vinamotor raises only US$7.4m through IPO

Viet Nam Motors Industry Corporation (Vinamotor) managed to raise only VND15.7 billion (US$747,000) through its initial public offering (IPO) at the price of VND10,000 ($0.47) per share.

More than 1.571 million shares were sold at an auction, constituting only 3.1 per cent of the total shares put on sales.

Through its IPO, Vinamotor offered 51 million shares at the initial price of VND10,000 ($0.47).

Vinamotor, with an estimated charter capital of VND1 trillion ($47.6 million), reported a turnover of about VND5.6 trillion (US$266.7 million) in 2013. The company produces motor vehicles and motor parts.

Stocks generate profits for investors in Q1

The stock market witnessed a strong surge in both benchmark indices and transaction volume and value in the first quarter of this year, generating profits for investors.

According to statistics revealed by online news portal Vietstock.vn, most stocks on both the bourses added value in the 53 trading sessions since the start of January to March 25.

Of them, 40 codes soared more than 100 per cent and more than 200 others witnessed an increase of more than 50 per cent.

Most of the stocks that saw good growth in the first quarter were traded below their face values.

Tuna fishermen haul in profits

Fishermen in Phu Yen Province's Tuy Hoa City have finally had a good catch of tuna this year, with good prices surpassing last year's dismal catch.

Nguyen Ky, whose boat returned to the fishing port of Tuy Hoa City's Ward 6 early this week after 25 days, said he had caught 35 tuna weighing a total of 1.5 tonnes.

With a tuna price of VND135,000 (US$6.4) a kilogramme, Ky earned a profit of VND50 million ($2,400).

Ky said each fisherman on his fishing boat had received VND5-6 million after the trip.

"This is my first successful fishing trip this year," Ky said.

Ky said he had suffered losses on several previous fishing trips last year because of poor catches.

Recently, many fishing boats full of tuna have returned to the Ward 6's fishing port, with boats averaging 1.5 tonnes of tuna each trip, according to local fishermen.

Fisherman Huynh Du in Ward 6, who earned a profit of VND200 million for his last tuna fishing trip, said good weather conditions for fishing tuna had occurred this year.

Phan Thuan, chairman of the Ward 6' Fishing Union, said 80 per cent of the ward's 196 tuna fishing boats were offshore.

The remaining boats had stayed on shore because of losses on previous fishing trips last year, he said.

The price of tuna has increased to VND130-140,000 a kilogramme this year compared to VND100,000-110,000 last year.

Phu Yen began tuna fishing 20 years ago, the first province in the country to do so.

The central province has about 1,000 tuna fishing boats.

Last year, more than 80 per cent of the province's tuna fishing boats suffered losses because of low tuna prices.

The country's tuna is exported to 87 countries and territories.

Measures for central coastal seafood growth

A conference was held on March 29 in the central coastal province of Phu Yen to look at measures to promote trade for sustainable aquatic development in the region.

With nine provinces and cities, the region is endowed with a coastline of 1,400 km –making up 43.8 percent of the nation’s total shoreline, and extensive fishing grounds, particularly Hoang Sa and Truong Sa.

Figures from 2012 show the region is home to 46,201 fishing boats and over 200,000 fishermen. The area for aquatic cultivation was estimated at 33,778 ha, producing over 180,000 tonnes of produce worth 27 trillion VND (1.3 billion USD).

Attendees put forth a number of solutions to develop the industry in a sustainable manner, such as restructuring the sector by increasing added value, promoting the links between fishermen and businesses, perfecting the fisheries infrastructure system, and enhancing the quality of human resources.

The application of new cutting-edge technology and bettering policies in the field are two of the measures needed to realise the target, participants said.

Many scientists have also proposed the Government enforces incentives linking high-class tourism and aquatic development with protecting the national sovereignty over seas and islands.

The conference is part of the 2014 Seafood Festival which is underway in Phu Yen province (March 27 - April 2).

Retail, service group records leading growth rate in Q1

Vietnam’s retail sales and service revenue is estimated at 701.4 trillion VND (33.4 billion USD) in the first quarter of 2014, a year-on-year increase of 10.2 percent.

The figure made the retail and services group among those sectors with highest growth rates in the Q1, according to the General Statistics Office.

Up to 607.9 trillion VND (28.9 billion USD), equivalent to 86.7 percent, was contributed by the non-State sector.

Meanwhile, 68 trillion VND (3.2 billion USD), or 9.7 percent, came from the State-owned sector. The remaining 25.5 trillion VND (1.2 billion USD) was from the foreign invested sector.

In March alone, retail sales and service revenue stood at 233.1 trillion VND (11.1 billion USD), representing respective monthly and yearly rises of 2 percent and 10.1 percent.-

HCM City farmers prosper thanks to growing safe veggie

Farmers in Tan Quy Tay commune in Ho Chi Minh City's Binh Chanh district are becoming prosperous thanks to farming safe vegetables, the Saigon Giai phong daily said.

Farmer Le Ngoc Loi in Village No.4 was sweating heavily after transporting a large amount of vegetables to Phuoc An Cooperative in the sun. He smiled thinking about his family’s future.

His family used to plant rice. Despite hard work in the farm, he could not make ends meet, therefore he left to work in a factory.

In 2006, he became one of the first four participants in Phuoc An Cooperative’s safe vegetable growers with the hope of escaping poverty.

He was supplied a net house, seedlings and fertiliser to grow safe vegetables following the Good Agricultural Practices (VietGAP) standards for the cooperative.

With the 10,000 square metres of vegetable crops, he supplies 250-300 kilograms of various vegetables to the cooperative. As a result, he is able to repay all of his debts and buy motorbikes and mechanical plows for his family.

Growing safe vegetables has changed lives of farmers. Roads have been improved to facilitate vegetable transportation.

Many people had unstable income before joining Phuoc An Cooperative, said Doan Van Chanh, chairman of the Farmer Association in Tan Quy Tay commune.

An Giang Plant Protection, the market leader in Vietnam in crop protection products, liaised with the Department of Agriculture and Rural Development in Ho Chi Minh City to send engineers to help farmers. The cooperative buys all products to sell 4-5 tons of safe fresh vegetables in market.

The cooperative now has 45 members with 20 hectares of farmland. Each farmer makes 30-40 million VND (1,423-1,897 USD) per year with 1,000 square meters of land.

Seeing that Phuoc An Cooperative is successful in safe vegetables model, Tan Quy Tay administrations developed one more to supply two tonnes of vegetables and create additional employment for local residents.-

Vietinbank expands branch network in Laos

The Vietnam Joint-Stock Commercial Bank for Industry and Trade (VietinBank) has opened one transaction office in Pakse town in the southern Lao province of Champasak.

The move is designed to boost long-term investment and operations in the country.

At the March 29 opening ceremony, Chairman of Vietinbank Board of Directors Pham Huy Hung said his bank opened the first branch in Laos in 2012, noting that the branch’s income reached 3.46 million USD last year, including 800,000 USD in after-tax profits.

Hung later asserted the office offers convenient and fast banking-finance services to local people and both Vietnamese and Lao business communities, contributing to further promoting trade and investment between the two countries.

Vietinbank pledges to abide by Lao laws and the regulations set by its central bank, as well as further improve the quality and effectiveness of services and enhance transparency. Its aim, it says, is to develop into a large commercial bank for the country.

Champasak province’s Party Secretary and Governor Sonsay Siphandone and Somphao Phaysith, Governor of the Lao central bank, highly praised Vietinbank’s decision to open the office in the province, a key strategic position connecting Laos with Thailand, Cambodia and Vietnam.

They added the local authorities will create favourable conditions for the office to operate efficiently and raise Vietinbank’s position in Laos, in order to reinforce and further expand investment partnership between the two countries.

Industrial production up 4.7 percent in March

Vietnam’s Index of Industrial Production (IIP) in March increased by 4.7 percent against the same month last year.

According to the General Statistics Office, in the first three months of 2014, the IIP has recorded a year-on-year rise of 5.2 percent, higher than the rate of 5 percent in the corresponding period of 2013.

Several industries have seen high growth in the reviewed period, such as textile (20.2 percent), leather and leather products (19.4 percent) and ready-made clothes (14 percent).

The northern port city of Hai Phong and the central city of Da Nang are among the localities seeing the highest IIP increase rates, with 11.3 percent and 10.5 percent respectively.

They are followed by Quang Nam province (8.9 percent, Dong Nai province (7.1 percent) and Binh Duong province (6.5 percent).

Meanwhile, decline in industrial production has been seen in Quang Ninh province (3.5 percent) and Ba Ria-Vung Tau province (1.7 percent).

Carrying gold bullion, materials in, out of Vietnam banned

Vietnamese and foreign individuals are banned from carrying gold bullion or gold materials when leaving or entering Vietnam, according to regulations recently issued by the State Bank of Vietnam.

Under Circular No. 11/2014/TT-NHNN, individuals on exit or entry are permitted to carry only jewellery gold and fine-art gold articles.

If the gold totals 300 grams or more, they must declare as such to customs officials.

The circular replaces Decision No. 1165/2001/QD-NHNN on the carrying of gold across borders. It will take effect from May 15, 2014.-

Giant apparel firm earmarks 190 mln USD for projects in 2014

The Vietnam National Textile and Garment Group (Vinatex) will pour over 4 trillion VND (190 million USD) into numerous projects including yarn, textile, garment, and cotton farms this year, CEO Tran Quang Nghi told Tuoi Tre (Youth) newspaper in a recent interview.

Prioritised projects include two plants that can dye 12-40 million metres of cloth per year, Nghi said.

Vinatex will also invest 2.2 trillion VND (105 million USD) in a complex which comprises a yarn – textile – garment mill, a water supply facility, a wastewater treatment plant, and accommodations for workers, he elaborated.

The group, Vietnam’s largest of its kind, has planned to set up an investment fund, called "TexFunds", with an initial capital of around 300-500 billion VND (14-24 million USD) in order to attract investments in infrastructure for the textile industry, which is quite costly at the beginning, Nghi added.

Early this year, the Bank for Investment and Development of Vietnam (BIDV), signed an agreement to lend Vinatex 600 million USD in the period from 2014 to 2016.

The loan package will be used by the textile firm to improve the efficiency of its production, invest in more projects, and upgrade their manufacturing technology.

The state-owned group logged a trade surplus of over 1.7 billion USD in 2013, Le Tien Truong, deputy director of Vinatex, reportedly said, adding that it also aims to increase export value by 12 percent this year.

“Vietnam will find more opportunities in many places, apart from the US and New Zealand, in the presence of a TPP agreement with favorable terms and conditions,” Truong said.

Vinatex will build a 1,500-hectare textile industrial park by the end of 2014 in cooperation with two Chinese companies, according to the portal of the Ministry of Planning and Investment.

The 400 million USD project, which is located in the northern province of Nam Dinh, is expected to be the biggest textile industrial zone in the country, attracting a number of investors in the fields of dyeing, leather, garment, and textiles from mainland China, Hong Kong, and Taiwan.

Doan Hong Phong, vice chairman of the provincial People’s Committee, said the province will hand over clean land to the investors by the last quarter of this year, adding that Nam Dinh will create a good working environment for them.

Once fully operational, the industrial park will create an industrial production value of 3-4 billion USD each year, paying 300-400 million USD to the state budget, and generating160,000 jobs.-

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