Bac Giang lychee to enter French market

As many as 500 kilograms of fresh lychees from Luc Ngan district in northern Bac Giang province will arrive at a French airport on the morning of June 4, the first export of its kind to the European country, the Vietnam Embassy in France's Trade Office has revealed.

The embassy’s Commercial Counsellor Nguyen Canh Cuong shared that his agency has launched the initiative of bringing Vietnamese lychees to France for almost a year since hearing of distribution difficulties facing growers back home due to heavy reliance on export to China.

He first learned that the fruit, which is normally imported to France from South Africa and Madagascar, is popular with French people. However, barriers lie in the importer’s requirements on plant quarantine and costly shipment.

Thanh Binh Jeune, a French-based importing business, has helped Vietnamese lychees find a foothold in the country through technical support and distribution chains in Paris and Lyon.

Michel Pierre, a French agricultural engineer who is currently in charge of a Madagascar’s project on lychee preservation and export to France and the EU, has come to Bac Giang and Hai Duong to transfer relevant lychee processing technology and to train local technicians.

If the first export gains a positive market response, Jeune will launch a second shipment within the month. The company expects to transport the goods by sea to cut costs when the processing technique allows the fruit to stay fresh for five weeks. Eight tones of lychee are hoped to reach French consumers this year.

According to Cuong, successful exports to France will pave the way for entering neighbouring markets.

He shared his wish that next year, Vietnamese lychee producers will expand their distribution network, and the technology transferred by Michel Pierre can help Vietnam boost other local fruit exports to the EU.

Milan Expo 2015 introduced to Vietnamese public

The Milan Expo 2015, which is taking place in Italy from May 1 to October 31, was introduced to the Vietnamese public at an event on June 3.

The Vietnam Pavilion designed by Vo Trong Nghia Architects on the theme “Water and Lotus” was inspired from the lotus ponds that are popular in the Vietnamese countryside. The pavilion consists of a shallow pool of water and a series of bamboo structures that encase trees.

At the event, co organised by the Italian Embassy in Vietnam in conjunction with the Ministry of Culture, Sports and Tourism and the Vo Trong

Nghia Architects Office, Italian Ambassador Cecilia Piccioni said the expo creates a good chance for visitors to understand better about cultures, traditional festivals, and food across the world.

The universal expo themed "Feeding the Planet, Energy for Life” draws 140 countries to showcase the latest technologies and solutions to ensure health, safety and food for all people but still protect the planet and its balance.

Vietnam and Italy's proposals on sustainable environmental protection are also unveiled at the event.

Portugal, Vietnam hold business dialogue

Prime Minister Nguyen Tan Dung has pledged to create a niche for Portuguese businesses to operate sustainably and effectively in Vietnam.

Addressing the Vietnam-Portugal business dialogue held on June 3 involving representatives from 80 Vietnamese and 40 Portuguese businesses, Dung emphasised that Vietnam has obtained significant socio-economic achievements with an average growth of 7.5% in the 1991-2010 period. From an underdeveloped country, Vietnam became a middle income nation in 2010.

Dung added that 101 countries and territories have invested in Vietnam and more than 100 world leading multinational groups are operating in the country. Last year, the country ranked 9th in the world in terms of investment attraction, according to the United Nations Conference on Trade and Development (UNCTAD) survey.

PM Dung briefed the participants on the results of the talks with his counterpart Pedro Passos Coelho. The two sides agreed to boost bilateral trade value from US$350 million in 2014 to US$1 billion in the coming years.

He revealed that the Portuguese President and PM both affirmed to support Vietnam’s early signing of a free trade agreement with the EU.

Portuguese Deputy PM Paulo Portas in turn hailed Vietnam as a rising star among developed economies in Asia and hoped that the Vietnamese delegation’s visit and the dialogue between the two countries’ businesses will open more opportunities to elevate bilateral cooperation.

At the dialogue, PM Dung and Minister of Planning and Investment Bui Quang Vinh answered questions from Portuguese firms on Vietnam’s investment environment and opportunities.

At an interview with a VOV correspondent, Fernondo Silva, Area Sales Manager at Grupel SA, said the dialogue provided a good chance for Portuguese businesses to boost cooperative ties with Southeast Asian countries, including Vietnam.

Hyosung Group to expand motorcycle production in Vietnam

Hyosung Group from the Republic of Korea (RoK) will introduce their latest souped-up sports bikes equipped with the latest technological advances at the 2015 Saigon Autotech & Accessories exhibition.

The move is part of the group’s long-term strategy to sell and manufacture the motorcycles in Vietnam, said Josh Kang, the company’s marketing director.

Mr Kang said the exhibition will mark the official return of the Hyosung sports bikes to the Vietnamese market and the group aims to sell at least 100 bikes per month in the first year, increasing to 200 per month in the second.   

He said the group is seeking a Vietnamese partner with good manufacturing experience to contribute capital, share expertise and improve human resources in order to get up and running as soon as possible.

Laos sugar imports taxed at 2.5%

The quota for Laos sugar imports (coded HS 1701) is 50,000 tonnes this year, and the import tariff is 2.5%, according to the Ministry of Industry and Trade.

The announcement was made via Circular 08, which takes effect from May 27. It went on to state that traders importing sugar from Hoang Anh Attapeu Sugar Cane Co Ltd in Laos would enjoy an import tax rate of 2.5%.

In addition, import procedures, which are checked by customs departments at border gates, would not require permits from the Ministry of Industry and Trade.

However, reports on sugar imports must be submitted monthly to the Ministry of Industry and Trade and the General Department of Customs under the Ministry of Finance.

Sugar imports from Laos will not count towards Vietnam's overall sugar import quota this year as a result of its commitments to the World Trade Organisation. At the beginning of this year, the ministries of Agriculture and Rural Development and of Industry and Trade agreed to set the 2015 sugar import quota at 81,000 tonnes.

The circular was released after the Ministry of Agriculture and Rural Development reported that sugar inventories were estimated at 496,790 tonnes as of mid May, 180,650 tonnes lower than the previous year.

The average sugar prices were reported to increase by VND2,000 (9.2 US cents) – VND2,500 (11 US cents) per kilogramme in May over the previous month to around VND14,300 (66 US cents) to VND15,000 (69 US cents) per kilogramme.

The domestic sugar industry has been struggling in recent years due to oversupply, plunging prices, smuggled sugar and pressure from neighbouring countries with more competitive prices.

These difficulties highlighted the urgent need for the sugar industry to improve its competitiveness, especially when the tax rate was scheduled to be cut to zero by 2018 as part of the country's commitments to the ASEAN Economic Community.

The 12th International Exhibition on Automobile & Supporting Industries (Vietnam AutoExpo 2015) will take place in Hanoi on June 17-20.

According to the Vietnam Automobile Manufacturers’ Association (VAMA), the automobile market in Vietnam might reach a growth rate of 10% this year with sales volume of nearly 200,000 units.

Right in the first four months of the year, a total of 66,885 vehicles were sold, an increase of 62% against the same period last year.

The Expo will contribute to supporting businesses, stimulating market, opening up huge opportunities, strengthening trade links and seeking potential partners and clients.

On display at the event are passenger sedans, trucks, buses, motorcycles, bicycles, specialised vehicles. Exhibits will also include supporting industries like material and equipment used automobile, motorcycle and bicycle production; parts, equipment, toys and decors and other fields like garage, repairing, maintenance, banking and insurance services, consultancies on production, business and consumption.

The event will attract well-known and new brand names such as Subaru, Shacman, Faw, Tata Deawoo, Huyndai, Junjin, VEAM, Dong Phong , Vu Linh, Tan Phat, Caska, Viet Phat, Elig, Truong Sa, Itsuwa, Okatsune, and Nissei Eco.

It will also attract famous bicycle brand names including Beforeall, Format, Bridgestone, Yamaha, Giant, and Honda. Businesses from Japan, Thailand, the Republic of Korea, India, Taiwan (China), Singapore and Malaysia will showcase their products at their pavilions during the Expo.

HSBC: Output and new orders soar in May

Vietnam’s manufacturing sector performed better in May when rising demand of clients led to record growth in both output and new orders, HSBC Bank said.

According to a report released on June 1, the Purchasing Managers’ Index (PMI) compiled by HSBC and its partner Markit rose for the second month running to 54.8 in May from 53.5 in April.

The marked improvement in operating conditions signaled by the latest reading was the strongest since the series began in April 2011.

Respondents indicated that the rise mainly reflected a greater need for products among customers. New export orders also climbed, albeit at a much weaker pace than seen for total new business, the report said.

As client demand increased, manufacturers raised production accordingly. As a result, output increased for the twentieth month in a row and at the strongest pace in the series history.

Andrew Harker, senior economist at Markit, said the Vietnamese manufacturing sector gained further momentum in May and growth rates are now the best seen in the four years of data collection.

Central to the recent success of firms in Vietnam has been their ability to secure new work in a competitive environment and the recent 1% devaluation of Vietnam dong against the U.S. dollar by the State Bank of Vietnam should help efforts to maintain international competitiveness.

On the other hand, some firms did report a rise in costs as a result of the weaker currency, leading to a first rise in input prices in seven months, the expert said.

After having fallen in each of the previous six months, input costs at Vietnamese manufacturing firms rose. Higher oil and electricity prices, as well as a weakening of the Vietnamese dong against the U.S. dollar, were mentioned by respondents as factors leading input costs to increase.

The rate of inflation was relatively modest and firms continued to lower their output prices amid competitive pressures. Charges have now decreased in each of the past eight months.

Rising production requirements led manufacturers to increase their input buying. Purchasing activity expanded sharply and at the fastest pace in the series history. This contributed to a second successive monthly accumulation of stocks of purchases, with the expansion also the fastest recorded in just over four years of data collection.

Suppliers’ delivery times lengthened marginally as panelists mentioned limited stock holdings at vendors. This was despite some reports that quick payments had led to faster deliveries.

Delays in the dispatch of products to clients contributed to an accumulation of stocks of finished goods in May, while strong output growth was also cited as a factor leading to increased post-production inventories.

Service sector contributes more to HCMC economy

The proportions of economic sectors in HCMC have been changing in an expected direction in the 2011-2015 period, with services having a rising proportion in GDP and industry contributing less to the city’s economy.

According to the HCMC government’s report, the proportion of the services sector accounted for 50.5% of the city’s GDP in 2005 but has risen to 59.6% this year.

Meanwhile, the proportion of industry has dropped from 48% in 2005 to 39.4% this year and that of agriculture has remained unchanged at 1%.

The State sector contributed 26.6% to the city’s economy in 2006-2010 but only 16.8% this year while the proportion of the private sector has increased from 50.6% to 58.2%.

Foreign investments in the city grew considerably in 2011-2015. Total fresh and additional capital in the period reached around US$13.5 billion with 2,230 new projects and nearly 670 ones adjusted.

HCMC has some 5,330 valid FDI projects worth nearly US$37 billion, with the property sector making up the biggest proportion of 36.7% (US$12.6 billion) and followed by the processing-processing industry 30.3% (US$10.4 billion).

Real estate inventories fall sharply

The Ministry of Construction estimated the total property inventory value at VND67.44 trillion (US$3.1 billion) as of May 20, down over VND61 trillion (47.5%) against the first quarter of 2013.

The property inventories dropped sharply compared to 2011-2012 when the local real estate market was stagnant after years of rapid growth. In this gloomy period, housing prices of all segments plummeted and some projects found no buyers, sending property inventories up to nearly VND128.65 trillion.

A report of the ministry showed realty inventories contracted by nearly 50% after more than two years since the first quarter of 2013.

By May 20, apartment inventory had totaled some VND19.8 trillion, or 12,900 units, followed by low-rise housing buildings with 9,000 units worth nearly VND16.13 trillion.

The inventory of housing land lots was 8.4 million square meters worth VND27 trillion and 1.6 million square meters of commercial residential land worth VND4.5 trillion.

Real estate inventories dropped by nearly VND1.34 trillion compared to April 20, according to the ministry.

The ministry credited shrinking property inventories to many successful transactions this year.

Real estate exchanges nationwide reported a total of some 5,850 successful transactions in January-April, a 2.5-fold year-on-year increase.

Credit for the property sector continued to grow in the first months of this year and the growth was higher than in other fields. Outstanding loans reached VND333.7 trillion by March 31, up 10% against the end of 2014.

The bad debt ratio of loans for the property sector was put at 5.61% as of the end of March.

Export growth slows as agro-aqua-forestry sales fall

The nation’s export growth in the first five months of this year was lower than expected due to a decline in outbound sales of ago-aqua-forestry products, according to the Ministry of Industry and Trade.

The head of the ministry’s planning department Nguyen Tien Vy was quoted by Vietnam News Agency as saying at a meeting  in Hanoi on June 1 that agro-aqua-forestry exports from January to May were US$8.14 billion, down 9.5% compared to the same period last year.

The period saw seafood exports down by 16.1% year-on-year to US$2.44 billion, coffee dropping by 38.2% to US$1.2 billion, rice by 10.7% to US$1.1 billion and rubber latex by 5.2% to US$464 million.

Fuel and mineral exports in the five-month period plunged 53% to nearly US$2 billion.

“Exports in the first five months of this year did not grow as highly as expected due to year-on-year declines by nearly US$3.1 billion in agro-aqua-forestry, fuel and mineral exports,” Vy said.

In all, Vietnam exported US$63.2 billion worth of products in January-May, increasing 7.3% over a year ago. Of which, the foreign-invested sector contributed US$44.37 billion (including crude oil), up 12.2% year-on-year, but exports of domestic firms slid 2.7% to US$18.83 billion.

The five-month export growth was buoyed by a strong year-on-year rise of 16.5% in processed products to US$49.27 billion.

The total revenue included US$11.8 billion from phone and component exports, US$8.11 billion from apparel, and US$6.02 billion from computers, electronics and parts.  

In the period, shipments to the United States surged 117.6% year-on-year and the EU 8.6% but exports to ASEAN dropped 3.7%, Japan 6% and China 1.2%.

January-May imports rose 15.8% year-on-year to more than US$66 billion, including US$14.4 billion last month. Domestic enterprises accounted for US$26.5 billion of the total figure, up 6.3%, while the foreign-invested sector made up US$39.68 billion, growing 23.2%.

According to the planning department, imports of under-nine-seat completely built-up (CBU) autos soared 62.8% in volume and 60.1% in value compared to the same period a year earlier.

Of the total imports, ASEAN made up nearly 16%, East Asian countries 68.7% and China nearly 31%.

Earlier, the General Statistics Office (GSO) said 45,000 CBU autos were imported into Vietnam in the first five months, soaring 125.3% against the same period of last year.

Surging auto imports played a part in Vietnam’s trade deficit in the period. According to the trade ministry, the nation ran a trade deficit of US$2.97 billion in the period, or 4.7% of total exports. The trade deficit last month was estimated at US$900 million.

The trade ministry said it would propose measures to keep this year’s trade deficit at less than 5% of total exports.

Regarding agro-aqua-forestry sales, Deputy Minister of Industry and Trade Tran Tuan Anh said the ministry would build stronger links between farmers and exporters as well as control imports of farm produce.

Apart from staying in luxury resorts or conventional hotels, tourists on a limited budget to Ho Chi Minh City, particularly backpackers, can now choose to stay in capsule hotels, which are affordable and feature all the comforts such facilities have to offer.

A capsule hotel is a type of hotel developed in Japan that features a large number of extremely small ‘rooms’ (capsules) intended to provide affordable, basic accommodation for guests who do not require the services offered by more conventional hotels.

Though such hotels have thrived in densely populated countries and territories such as Japan and Hong Kong, they remain new in Vietnam, but are gaining in appeal among tourists on a shoestring budget.

Shawn Tan, a Singaporean tourist, has stayed in such a hotel on Bui Vien Street in the ‘backpacker area’ in downtown Ho Chi Minh City.

Accommodation for one month costs him a mere US$200.

The six-floor Kaiteki hotel measures only 60 square meters in area, with its ground floor serving as a reception lounge.

The top three floors can comfortably accommodate around 100 guests, who spend their nights in 60 "beehive" capsules.

A Tuoi Tre (Youth) newspaper reporter spent three nights in the hotel in both regular and VIP capsules to get a taste of what it is like in such compact cells.

As the hotel invariably operates to full capacity, its Hong Kong owner does not feel the need for advertisements.

The Tuoi Tre reporter had to book one week in advance.

As he observed, the capsules are stacked onto one another to form two decks. A four-square-meter space can thus snugly hold four people.

Despite their limited space, the imported “sleeping bags” are all equipped with a television set, Wi-Fi, an air-conditioner and headphones so that guests can enjoy their TV programs or music without disturbing their neighbors.

Guests are also entitled to the use of a code-operated locker which is wide enough for a large suitcase.

Harris Nordin, a Malaysian tourist, finds his capsule an excellent choice.

“I have all that I need here. All we tourists who are constantly on the move need is a small, clean resting place where we also have access to the Internet,” he commented.

“We are also assured that our luggage is in a safe place. I find the spacious and clean restrooms most satisfactory, though people on the same floor have to share them,” Nordin added.

The greatest appeal about such capsule hotels is their low room rates.

A regular capsule at Kaiteki Hotel costs only $6 a night, and guests spend only $7 for one night in a luxury one, which boasts the same comforts but a nicer position.

Tan, the Singaporean tenant who has stayed at the hotel for the past one month, currently works for a Singaporean tourism website.

He has done extensive globetrotting to many countries for a long time as part of his job requirements.

Capsule hotels have thus become his optimum choice in those countries.

“I need accommodation which is cheaper than conventional hotels during my lengthy stay in Vietnam. Before staying here, I spent time in different hotels, and this capsule hotel saves me between 200 and 300 dollars a month,” Tan revealed.

He finds staying in a capsule more convenient than renting his own room, as room cleaning service is available.

“Apart from a comfy resting place, all I need is a place to work. The capsule here is wide enough to allow me to work comfortably on the computer and the Internet is also excellent,” he noted.     

Several other foreign tourists find such capsules most desirable as a resting place.

John Hayes, an American tourist, returned to his capsule at Kaiteki Hotel in the late hours and continued to explore the city around nine or 10 o’clock the following morning.

“I came to Vietnam mainly to go sightseeing, not to indulge in the comforts which conventional hotels or resorts offer. So I don’t want to spend too much money on accommodation. I would make another choice if I were with my family,” he explained.

Hayes added that before arriving in Vietnam, he had traveled to Japan, South Korea and Singapore.

“Capsule hotel” was always his first search phrase on tourism websites.

Female guests also make up a substantial part of the clientele at Kaiteki Hotel.

An attendant said one floor is dedicated to female holidaymakers and is always packed.

“A number of Vietnamese guests who stayed here expressed concerns that such capsules cost them their privacy. However, most of the guests here are foreigners, who always make it a point to avoid perturbing their neighbors,” the attendant added.

The emergence of such capsule hotels has helped further diversify tourism products in Vietnam and such hotels target mainly backpackers who take more delight in exploring than resorting.

Nordin, a seasoned traveler to Southeast Asian countries, observed that capsule hotels in Vietnam cost the least and are of equal quality to those in other regional countries.     

A capsule rate in Malaysia and Thailand varies between $10 and $20, while such hotels in Japan, where the hotels were invented, charge around $20 to $25 a night.

The rates in Indonesia are more or less the same as those in Vietnam, Nordin added.

FDI approvals in HCMC grow strongly

Foreign companies registered a total of over US$1.05 billion for new and operational projects in HCMC in January-May, up 33% against the same period last year, according to the HCMC Department of Planning and Investment.

The total foreign direct investment (FDI) pledges included US$669 million for 200 new projects and US$386 million for 65 operational projects.

The capital of the FDI projects at industrial parks and export processing zones in the city exceeded US$610 million. Saigon Hi-Tech Park and the city’s southern districts saw fresh FDI capital pledges totaling US$42 million.

The strong five-month growth in FDI proved HCMC remained attractive to foreign investors despite a fall in FDI pledges nationwide.

According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, FDI approvals for both new and operational projects in Vietnam in January-May stood at US$4.3 billion, down 22% year-on-year.

HCMC ranked first in terms of FDI registration, followed by Dong Nai Province with US$949 million (21.1%) and Haiphong City with US$319.3 million (7.4%).

Foreign enterprises mainly registered capital for the processing and manufacturing sector with 269 new projects and 142 existing projects with combined capital amounting to US$3.15 billion, 73.4% of the country’s total.

The real estate sector came second with US$461.5 million for 10 new and seven operational projects, making up 10.7% of the total.

Regarding domestic investments, HCMC had issued business certificates for 11,419 firms with registered capital of over VND77.38 trillion as of May 20, up 19.2% in number and 45.51% in capital against the same period of 2014.

Meanwhile, enterprises pledged an additional over VND44.51 trillion for some 16,694 operational projects, up 2.4% in number but down 7.5% in capital year-on-year.

Overall, domestic enterprises got approval to pour over VND121.9 trillion into new and existing projects in HCMC in January-May, rising by 20.3% against the same period last year.

Project initiated to increase non-fired bricks market share

The Ministry of Science and Technology in collaboration with the UN Development Program (UNDP) has launched a project to enhance the production and use of non-fired bricks in Vietnam.

The US$2.8-million project is funded by the Global Environment Facility through UNDP and implemented by the ministries of science-technology and construction.

According to UNDP, economic growth and rapid urbanization have led to significant growth in the construction and building materials market in Vietnam. The building sector is projected to grow at about 8% a year in the next ten years, with the increasing demand for building bricks.

However, fired clay bricks still account for over 80% on the local market. Thousands of traditional brick kilns nationwide are burning coal and taking soil from agriculture land to produce these bricks, causing adverse environmental impacts.

Therefore, the “Promotion of Non-Fired Brick Production and Utilization in Vietnam” project has been in place to help increase the production, sale and utilization of non-fired bricks. This will displace the use of fossil fuel and good quality soil for brick making, thus helping reduce the greenhouse gas emission of at least 383,000 tons of carbon dioxide after five years of implementation.

The project is expected to remove barriers from production and the use of non-fired bricks and support the implementation of the Non-Fired Bricks Development Program, which was approved by the Prime Minister in 2010. The goal of this program is to increase the market share of non-fired bricks to 25% in 2015 and 40% in 2020.

UNDP Country Director in Vietnam Louise Chamberlain hailed the Government’s commitment to transform the building material market and encourage greater use of non-fired bricks.

“Introducing green construction materials means creating more green jobs and income from sustainable economic activities,” she Chamberlain. “This helps reduce the greenhouse gas emissions - an extremely important contribution to a greener development path.”

The authority of Saigon Hi-Tech Park (SHTP) in HCMC has presented an investment certificate to Daeyoung Electronics Vina, a supplier of Samsung, according to a source from SHTP.

The awarding of the investment certificate to the South Korean firm took place during a recent trade and investment promotion visit to Busan by the HCMC government.

With total registered capital of US$63 million Daeyoung Electronics Vina will produce electronic components and LED screens.

The project is what the city needs to develop supporting industries for major manufacturers like Samsung who will spend US$1.4 billion on an electronics complex in HCMC. Samsung’s investment project is expected to attract firms in supporting industries to come to set up shop.

Phase one of Samsung’s new manufacturing complex is scheduled for operation in next year’s quarter two to produce TVs. In the next phase the complex will manufacture home appliances like fridges, air conditioners and washing machines.

Air-con crisis in Hanoi heat wave

Air-conditioner repairers are working overtime as Hanoi is gripped by a heat wave.

As temperatures topped 40C day after day, many old air-conditioners broke down, with repairers falling days behind in making calls.

Pham Thi Thuy Loan, from Cau Giay District’s Xuan Thuy District, said, “I can do nothing but pray for cooler weather and that our air-conditioner keeps working."

Many families in Hanoi have rushed electrics goods stores to buy new air-conditioners, but have to wait days to have them installed.

“We bought an air-conditioner at a major mart in the city a week ago but it has yet to be installed,” said Nguyen Van Thanh from Phu Do Village in My Dinh District.

“When we called them they said we had to wait longer because they are too busy."

Nguyen Van Truong, owner of an air-conditioner repair shop in Thanh Xuan District’s Ha Dinh Street, said the shop could not handle the 50 to 60 calls a day it has been receiving and is not taking on any more work until the backlog can be cleared.

“We don’t have enough staff to deal with the demand for repairs," Truong said. "When the temperature was 34-35 Celsius, our staff had to work from 5am until 10pm, and even midnight. When it topped 40C, we had to cut back on jobs rather than make staff go out at noon. It's just too hot."

Govt cuts loan rates to support needy people

Prime Minister Nguyen Tan Dung has signed a decision to lower lending rates for needy households, policy beneficiaries, and students seeking loans at Viet Nam Bank for Social Policies (VBSP).

Under Decision 750/QD-TTg, beneficiaries will be offered loans at a new interest rate of 6.6 per cent per year, instead of 7.2 per cent.

Interests on loans for projects related to clean water supply and hygiene improvement in rural areas, as well as business households in disaster-hit areas, will be also cut from 9.6 per cent to 9 per cent per year. The decision will be applicable to new loans issued from June 5.

The interest rate cut is expected to help the poor have easier access to bank loans, apart from contributing to sustainable hunger eradication and poverty reduction.

According to reports from the VBSP, the total amount of loans given to policy beneficiaries reached VND129.456 trillion (US$5.965 billion) by the end of last year, with most of it going to regions with a high poverty rate such as the northwest, Central Highlands, and Cuu Long (Mekong) Delta.

Thanks to the Govern-ment's credit programmes, more than 25.5 million needy households were provided with preferential loans during 2005-14, which saved some 3.6 million households from poverty and generated jobs for 11 million locals.

The VBSP has set up nearly 11,000 transactions offices nationwide since its launch more than a decade ago.

FTAs demand trade rule awareness

The need for businesses to learn the import and export regulations in different markets has only become more important as Viet Nam signs a slew of free trade agreements (FTAs), experts say.

So far, the nation has inked nine FTAs, most recently with the Republic of Korea and the Eurasia Economic Union. Other new-generation FTAs are also under negotiation, including one with the European Union and the Trans-Pacific Partnership treaty with 11 other nations.

FTAs offer a host of opportunities for Viet Nam's economic sectors, especially trading, given many tax and investment incentives, said Nguyen Thi Thu Trang, Director of the WTO Centre at the Vietnam Chamber of Commerce and Industry (VCCI).

She said at a workshop in HCM City yesterday that the new trade pacts also require the Vietnamese Government to comply strictly with commitments on support policies for domestic industries.

Nguyen Anh Duong of the Central Institute for Economic Management said the FTAs will pose major challenges for local companies. Citing the food processing industry as an example, he noted that partner countries may levy stricter anti-dumping measures, while local firms' struggle to remain competitive amidst several problems including inadequate access to credit.

The country will be required to increase the proportion of foreign ownership of electronics companies as promised in the FTAs, putting more pressure on domestic firms, he said.

Huynh Van Hanh, Vice Chairman of the HCM City Handicraft and Wood Industry Association, said agriculture was more vulnerable to FTA impacts since it uses a majority Vietnamese workforce. Market fluctuations and inclement weather were also risks that the sector faces, he said.

Besides encouraging scientific and technological applications and market expansion, relevant agencies should enhance communication on both advantages and challenges brought about by FTAs, he said.

Tran Huu Huynh, Head of the VCCI's Advisory Committee on International Trade Policies, said companies had been active in FTA negotiations after Prime Minister Nguyen Tan Dung ordered Vietnamese negotiators to consult organisations, associations and businesses before engaging in FTA talks.

Around 130 businesses are displaying goods at a Vietnamese high-quality products fair that will end on Sunday in Can Tho City.

The fair, which opened yesterday, is being held at the Can Tho International Exhibition and Fair Centre. It features 400 booths showcasing fast-moving consumer goods, garments and textiles, electrical goods, household utensils, pharmaceuticals, and food and chemicals.

Innovative achievements of businesses as well as safe farm produce and specialties of co-operatives and production establishments in the Cuu Long (Mekong) Delta region are on display as well.

The six-day fair includes a culinary competition, consultancy on children's healthcare, game shows and lucky draws.

Organised by the Business Association of High-Quality Vietnamese Goods, the fair is expected to pave the way for Vietnamese products to gain a strong foothold in the domestic market.

FUSO hand-over the fleet of trucks for DB Schenker

FUSO Vietnam has recently held the ceremony to hand over the first fleet of trucks for DB Schenker – a partner of Mercedes-Benz Vietnam (MBV).

This is a milestone in the expansion and improvement of the vehicle fleet quality as well as in the provision of comprehensive solutions for the transportation & logistics services of the world-leading enterprise’s business in Vietnam.

FUSO truck brand under new takeover by MBV has continuously developed product quality, appearance as well as introducing a wide range of trucks segment.

The synthesis power of FUSO Vietnam is the “Tripod” spirit demonstrating a three-party collaboration: Japanese technology, German management, Vietnamese operational expertise, which seems to deliver benefits for customers. Safety, powerful operation, and the ability to quickly return the investment are the advantages of FUSO trucks.

DB Schenker known as one of the leading companies in its market sector, has been providing transportation and logistics solutions in Vietnam for over 20 years and has been a partner of MBV since 2014.

As FUSO trucks clearly meet the requirements set out in upgrading the quality of its vehicle fleet, DB Schenker has decided to order the first fleet of trucks in two segments: Tractor FV 517 heavy-duty-truck, and Canter light-duty-truck.

Juergen Braunbach, Managing Director of DB Schenker in Vietnam said: “The DB Schenker team highly values our partnership with Mercedes-Benz Vietnam. In this hand-over ceremony of FUSO trucks, we reinforce our commitment in providing top quality transportation solutions for our customers”.

FUSO Vietnam is a long-term strategic partner of DB Schenker in providing high quality trucks in order to meet the growing demands of the transportation & logistics market as a core value of the FUSO truck brand: “Partner in moving customer’s business”.

“The hand-over of the first fleet of trucks for DB Schenker as a business partner, and now becoming our valued customer is something that I am very proud of. I strongly believe that FUSO is a reliable companion in the business of our customers because of our high quality trucks.” Michael Behrens, CEO of Mercedes-Benz Vietnam said.

Garment, footwear exports surge high

Garment and footwear exports obtained an impressive growth in the first five months of this year, according to the Ministry of Industry and Trade’s latest report.

In May, output of natural fabrics was estimated at 26.8 million sq.m, a year-on-year rise of 5.5% while that of synthetic fabrics dipped 4.9% to 66.3 million sq.m and casual clothing rose 9% to 262.3 million units.

The figures in five months are 118.2 million sq.m (up 2.3%), 287.1 million sq.m (up 1.8%) and 1,212.2 million units (up 2.3%), respectively.

About 62% of garment businesses have won more orders in the second quarter compared to the first quarter of this year.

In the reviewed period, footwear output is estimated at 130.7 million pairs, an increase of 24.8% over the corresponding period last year. Exports in five months hit US$4.6 million, up 19.5%.

Around 55.7% of footwear businesses have got more export orders for the second quarter.

Emirates offers cheap flights from HCM City to Paris

Dubai's Emirates airline is offering one-way tickets from HCM City to Paris discounted by as much as 48% to VND16 million, including taxes and surcharges, on flights from June 5 to November 30, 2015.

Customers can book tickets from June 1 to 4, 2015 for travel from June 5 to November 30, 2015 inclusive, directly through the airline or authorized travel agencies.

The offering comes as part of an effort by Emirates to open new routes to US cities from Dubai, as well as fly new routes from European airports under Open Skies agreements with US authorities.

Vietnam’s int’l tourist numbers down for 12th straight month

Vietnam’s international tourist arrival numbers dropped for the 12th consecutive month in May but the government said it needs more time to consider scrapping visa requirements for more countries.

More than 576,000 international tourists visited Vietnam this month, a 16.4% drop compared to May 2014, the General Statistics Office reported on May 28.

Total foreign tourist arrival numbers in the first five months of this year reached more than 3.27 million, another 12.6% decline from the same period last year.

Vietnam’s international tourist count has fallen for 12 months in a row despite complaints and calls for help from industry insiders.

Although there are several problems that discourage global vacationers from spending their holidays in Vietnam, the country’s visa requirements emerge as one of the most crucial issues.

International tourists currently have to meet strict requirements, complete complicated procedures, and pay high fees to get a visa for their Vietnam trip, industry insiders said at a conference held by the Vietnam Tourism Association (VITA) in Hanoi on June 1.

VITA suggested that the government waive visas for vacationers from France, the UK, Germany, and Australia, which are always in the top ten of Vietnam’s largest sources of tourists.

“Waiving visas is the initial step in attracting tourists to Vietnam,” VITA deputy chairman Vu The Binh said.

Binh also urged the government to waive visa fees for all international tourists for the second half of this year.

Any international tourists who visit Vietnam between July and December should be entitled to a zero visa fee, whereas local tour organizers who join a national campaign to boost tourism should be allowed to pay zero value-added tax for one year, according to the VITA official.

While VITA did not elaborate whether it would submit an official proposal, the Government Office addressed the issue during a regular meeting on Thursday.

“The government has acknowledged that there must be synchronous solutions for resolving the issues in the tourist industry, which is greatly affected by the declining tourist arrival numbers,” Minister Nguyen Van Nen, head of the Government Office, said at the meeting.

Waiving visa requirements for more countries will create the most convenient conditions for tourists, but the government has “yet to decide which countries to scrap visas for,” Nen said, adding this is because of mixed opinions about the issue.

“We need more time to consider before giving the final decision,” he said.

ASEAN tourists are now exempt from visas when visiting Vietnam, as are those from seven other key markets, including Russia, Japan, South Korea, Denmark, Norway, Sweden, and Finland.

ASEAN is a ten-member bloc which includes Southeast Asian countries- Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar, and Vietnam.

Construction of south-central fisheries centre discussed

The Ministry of Agriculture and Rural Development (MARD) held a discussion with the People’s Committee of central Khanh Hoa province on June 2 regarding the construction of a fisheries centre in the South Central region this year.

The 46-hectare fisheries centre will be built between 2015 and 2018 at a total cost of over 1.56 trillion VND (71.7 million USD), including 184 billion VND (8.4 million USD) of Japan’s official development assistance (ODA) fund, 732 billion VND (33.56 million USD) from the State budget, 120 billion VND (5.5 million USD) from the local budget and 528 billion VND (24.2 million USD) from the private sector.

Located at Da Bac Port in Cam Ranh city, Khanh Hoa province, the project is intended to assist local fishermen in logistics to improve the quality and value of fish and other aquatic species caught at sea.

MARD Deputy Minister Vu Van Tam stressed that once completed, the South Central fisheries centre would serve as an example for the construction of the remaining centres approved by the Prime Minister.

The provincial People’s Committee should work closely with relevant bodies to prepare necessary paperwork and draw up a detailed plan for the project, he said, adding that the centre should include proper shelter for fishing vessels during storms.

Vice Chairman of the People’s Committee Dao Cong Thien noted that the province has been working on a plan to upgrade the Da Bac fish port to first class standards.

The south-central fisheries centre is among five centres to be built nationwide from 2015-2020. The remaining are located in Ba Ria – Vung Tau, Kien Gian provinces, Da Nang and Hai Phong city.

Each will have a wholesale market, a refrigerated fish-storage area, a fresh fish storage area, a fishing port and other facilities.

The fishery centre ports are expected to be capable of accommodating vessels weighing up to 20,000 tonnes and offer a storm shelter for fishing boats.

India hopes to benefit from Vietnam-EEU trade pact

The newly signed free trade agreement between Vietnam and the Eurasian Economic Union (EAEU) is likely to boost India’s trade with Eurasian and Southeast Asian regioins, according to the Economic Times.

The signing of the trade pact on May 29 incidentally comes days ahead of Indian President Pranab Mukherjee’s trip to Belarus this week, the newspaper said, noting that Belarus is a member of the EAEU and India and Belarus are expected to discuss India joining the EAEU during the trip.

The newspaper said if India decides to join the EAEU, it will assist India to realise the untapped potential in trade between it and countries of the EAEU, which currently comprises Russia , Belarus , Kazakhstan and Armenia while ratification procedures are under way for Kiyrgyzstan to join the trade bloc.

The Economic Times quoted Russian Prime Minister Dmitry Medvedev as saying that the agreement with Vietnam is a breakthrough decision, while Chairman of the Board of the Eurasian Economic Commission Victor Khristenko described the agreement as “a historic act”.

According to the newspaper, India is closely studying the agreement to understand the benefits.

Technology incentives introduced to Da Nang firms

Representatives from over 70 businesses in the central city of Da Nang were informed of incentives to the use of modern technologies during a local seminar on June 2.

A number of them mentioned difficulties in adopting technological advances, including high costs, lack of marketing skills and limited resources to monitor competition and the latest technology trends.

They shared that Vietnamese companies predominantly process and export raw materials using outdated technologies, resulting in low added value.

According to them, domestic firms also find it hard to access financial subsidies when they plan for technology adoption, partly owing to cumbersome procedures.

The Ministry of Science and Technology reported that 76 percent of firms are using assemblies dating back to 1960-1970, 75 percent of equipment has exceeded its intended lifespan, and hi-tech equipment is used by a mere 20 percent of businesses.

Participants called for all possible regulations to stimulate technology use, adding that micro-enterprises could financially contribute to local science-technology development foundations, making it easier to support the business community.

Representatives from the Technology Management Office under the municipal Department of Science and Technology underscored the need to train a contingent of qualified technical researchers and engineers in each business.

On top of that, funding for sci-tech research in training establishments should be increased and local science-technology development foundations should work closely with the Departments of Science and Technology nationwide to avoid overlapping research.

Yamazaki Mazak Vietnam and Mitsubishi Electric Vietnam also took the occasion to introduce their latest manufacturing technologies to participants.

The event was co-hosted by the municipal chapter of the Vietnam Chamber of Commerce and Industry (VCCI) and Yamazaki Mazak Vietnam.

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