EVN calls for saving electricity for fear of thermal power difficulties

The Vietnam Electricity Group (EVN) has called for electricity conservation as some of its thermal power plants are facing difficulties due to the drop in coal production because of flooding in Quang Ninh Province.

Many coal companies in Quang Ninh face big losses after the big flooding.

EVN said that, from July 25 to July 30, Quang Ninh Province was the target of torrential rain and the worst flooding in 40 years.

Landslides and flooding cut access to coal mines in Cam Pha and Hon Gai, which affected supply to Coastal Thermal Power Plant No. 1 and Vinh Tan Thermal Power Plant No. 2.

Coal-fired plants of EVN only have enough coal to operate for about five days, although the Uong Bi Thermal Power Plant has a 20-day stockpile.

In the next days, the Vietnam National Coal and Mineral Industries Group (VINACOMIN) will focus on opening roads in Hon Gai and Cam Pha, with a focus on Coastal Thermal Power Plant No. 1 and Vinh Tan Thermal Power Plant No. 2.

The Ministry of Industry and Trade urged Vinacomin and EVN to boost electricity generation from all hydropower and power plants nationwide to ensure uninterrupted supply.

The Vietnam Coal and Mineral Industries Group (Vinacomin) said on July 29 the torrential rains in Quang Ninh, Vietnam's kingdom of coal, caused losses of about VND500bn for the group. Most of the coal mines have halted production.

Jan-Jul auto, part imports put at US$3.4 billion

Imports of completely built-up (CBU) autos and auto parts have amounted to US$3.4 billion in January-July, soaring 88% against the same period last year, according to the General Statistics Office (GSO).

The GSO’s data showed 65,000 cars worth US$1.72 billion have been imported into Vietnam in the year to date, surging 107.7% in volume and 154.4% in value year-on-year.

The January-July auto imports are higher than last year’s total of US$1.57 billion and more than doubled 2013’s US$709 million.

CBU autos are among the imported products with strong revenue growth in the first seven months. Vietnam has mostly imported trucks from China, pick-up trucks from Thailand and cars from Japan, South Korea and India.  

Auto assemblers reported good business results in the first months of the year. As the ratio of local content in automobiles is still small, automakers had to import large volumes of parts for domestic assembly.

According to the GSO, in addition to the US$1.72 billion CBU auto imports, Vietnam has spent an almost equivalent amount importing auto parts since the year’s beginning.

The combined turnover of imported autos and auto parts from January to July is equivalent to the period’s estimated trade deficit of US$3.4 billion.

Most automakers have not revealed their January-July business results but their sales volumes in the first half were high.

Data of the Vietnam Automobile Manufacturers Association (VAMA) indicated nearly 103,500 units were sold in the year to June, a 58% year-on-year rise. Of which, passenger cars accounted for more than 60,100 units (60%), commercial autos over 37,300 units and special-purpose vehicles over 6,000 units.

If sales growth is maintained, auto sales in all of 2015 can reach 200,000 units. Demand for autos is traditionally higher in the final months of year.

Local leader at Hong Leong Bank Vietnam steps down

The board of directors of Hong Leong Bank Vietnam has approved Vietnamese national Le Minh Tam’s resignation from the post of general director at the 100% foreign-owned bank from September 1.

Tam, who has over 20 years of experience in the local financial sector, has served as general director of the Malaysian bank since January 1, 2014 and would be replaced by a Malaysian national from September.

Speaking to the Daily, Tam confirmed his resignation and pointed out the limited ability of foreign banks in reaching out to more Vietnamese customers as one of the reasons behind his resignation.

With chartered capital of VND3 trillion, Hong Leong is one of the five 100% foreign-owned banks in Vietnam.

In legal terms, banks with 100% foreign ownership have the same treatment as domestic banks but these foreign-owned banks still face a number of barriers. Nonetheless, Vietnam is an attractive destination for financial and banking groups.

Tam said the banking sector still holds great growth potential in terms of customers and products. With a young population and high Internet and telecommunication penetration rates in urban areas, the e-banking service segment will fare better.

Tam and HSBC Vietnam CEO Pham Hong Hai are the two Vietnamese employed to lead 100% foreign-owned banks in the nation.

HCM City seeks to boost E5 bio-fuel sale

The government of HCMC has proposed the Prime Minister cut the price of ethanol and partially support E5 gasoline production and distribution costs to spur sales of this bio-fuel.

To boost sales of E5, a type of petrol mixed with 5% ethanol, the city government wrote to the Prime Minister on Monday asking for incentives such as amending the regulations on the assessment, certification, use of additives and standards on gasoline production.

Currently, there are nine major fuel wholesalers having six general agents and 514 retail stores in the city. In November last year, 58 local gas stations began selling E5 but the number had risen to 155 by June this year.

Average E5 sales from November to June reached 4,500 cubic meters per month, accounting for a mere 3% of total fuel sales in the city.

The city is on target to increase the total number of stations selling E5 to 171 by end-September and 514 in late November.

However, fuel wholesalers said it is difficult to speed up consumption of E5 as it is new to consumers. Local fuel trading firms are hesitant to sell this bio-fuel as they have to spend much on new filling stations and are concerned that low sales would cut into their profit.

Earlier, Deputy Prime Minister Hoang Trung Hai urged local agencies and fuel wholesalers to accelerate construction of E5 mixing facilities and expand the pumping station network to serve more customers.

In early July, the city government drew up a roadmap to force State agencies and enterprises to use E5 gasoline for their automobiles.

New tra fish development scheme sought

Le Vinh Tan, deputy head of the Party Central Committee’s Economic Commission has underscored the need to draw up a scheme to build a strong tra fish industry and diversify its products.

The slowdown of the tra fish industry and the country’s deeper international integration require it to be restructured for better performance, Tan said on the sidelines of a seminar in Can Tho City on July 30 on solutions to boost tra fish production and consumption.

Vietnam will further integrate into regional and global economies next year and if the industry keeps going on the old path, it will have to grapple with a host of difficulties.

The value of tra fish is higher than that of many other agro-aqua products as with less than 6,000 hectares of farmland, tra fish could bring annual export turnover of US$1.8 billion, Tan said.

According to data of the Vietnam Pangasius Association, Vietnam exported nearly US$750 million worth of tra fish products in the year’s first half, down 9.03% year-on-year. Tra fish exports to the U.S., the EU and China made up over US$159 million (21%), over US$142 million (19%) and nearly US$63 million (8%) respectively.

Tan said enterprises needed to understand specific demands of each importing market to provide suitable products.

Exported tra fish products of Vietnam are mainly frozen fillets (85%) and unchopped or chopped fish (8%).

Besides, cooperation among tra fish enterprises remains weak and they are often embroiled in price cut races, Tan said.

Vo Hung Dung, general secretary and vice chairman of the association, said many agencies have prepared development schemes for key projects of the Mekong Delta region, including tra fish. However, resources would be a big challenge.

The new development scheme should focus on building brands instead as issues concerning production and quality improvement were already included in a Government decree on tra fish, Dung said.

In addition, it is necessary to survey markets such as the EU, the U.S., ASEAN and China to work out suitable strategies to step up sales to these markets, he continued.

Enterprises currently buy unprocessed tra fish at VND20,000-21,500 per kilogram, heard the seminar. With such price levels, farmers incur losses of VND1,000-1,500 per kilogram.

Hanoi finds investors for supermarket projects

The government of Hanoi City has announced plans to select investors for developing supermarket and trade center projects.   

According to the city’s Decision No. 3415/QD-UBND, the projects include supermarkets and trade centers in Quoc Oai Town and Thanh Liet Commune in Thanh Tri District, and markets and public works in Tram Troi Town in Hoai Duc District.

These projects will be partially funded by the city’s budget. The city government will also raise funds from joint ventures, and foreign and local investors for the projects.

Tran Thi Phuong Lan, deputy director of the Hanoi Department of Industry and Trade, told reporters recently that Hanoi will need over 1,000 supermarkets and commercial centers to meet rising demand as outlined in a zoning plan for commercial centers until 2020 with a vision towards 2030.   

The new supermarkets include 23 of Grade A ranking, 100 of Grade B, 865 of Grade C. They will be located at basements and ground floors of buildings in innercity areas while traditional wet markets in the city center will be upgraded to incorporate supermarkets and commercial centers.

According to the Hanoi Department of Industry and Trade, the city now has 135 supermarkets and 28 commercial centers. Therefore, the city will have to build 864 new supermarkets and 36 commercial centers as envisaged in the zoning plan.

The zoning plan for trade centers is part of a master zoning plan for socio-economic development until 2020 with a vision towards 2030 in Hanoi.

Vietcombank, VNA to collaborate in several fields

Vietcombank and national carrier Vietnam Airlines (VNA) signed a comprehensive co-operation agreement in Ha Noi on July 30.

Representatives of Vietcombank and Vietnam Airlines sign a comprehensive co-operation agreement in Ha Noi. Photo VNA

Under the agreement, the two parties will establish long-term, comprehensive and effective co-operation in several fields. Vietcombank will provide VNA diversified banking and financial service products with preferential policies, such as monetary and capital source management, commercial support, international payments and issue of letter of credit, guarantees, cards and services related to corporate finance and the stock market.

Meanwhile, the carrier will offer preferential policies to passengers, goods, luggage and parcels from Vietcombank. The airline will also allow the bank to finance and invest in its subsidiaries.

The two sides said they would implement an overall marketing programme and co-operate to develop trademarks to maximise the results of their co-operation.

FPT profits up in H1 thanks to strong overseas branches

The country's software giant FPT Corporation (FPT) released the company first-half financial report, citing pre-tax profits of VND1.35 trillion (US$63.3 million), a 10 per cent increase over last year's H1 figure.

The holding company's after-tax profit increased by 12 per cent to VND881 billion ($41.3 million) over last year.

The company's earnings-per-share also rose by 12 per cent to VND2,224.

FPT's combined revenue rose by 27 per cent over last year to VND19.32 trillion ($907 million), 108 per cent of this year's plan.

The company said that the growth of sales in the company's technology sector and distribution-retail sector was the major factor that helped FPT achieve such high profits and revenue.

The technology sector recorded VND3.46 trillion ($158 million) in revenue and VND395billion ($11.3 million) in pre-tax profit for the first-half, an increase of 27 per cent and 14 per cent, respectively.

FPT's growing overseas branches is a key factor in its growth. Its overseas business increased 44 per cent to $98 million in revenue in the first half of this year.

Ha Noi seeks investment in four commercial centres

The municipal People's Committee is seeking investors to facilitate the construction of four new commercial centres in the Quoc Oai, Thanh Tri and Hoai Duc districts.

Under the Decision No. 3415/QD-UNND, the projects will not use capital from the State budget. The committee required the Department of Natural Resources and Environment to instruct the districts to develop land-use plans for the construction by 2020.

It also asked the Centre for Investment Promotion, Trade and Tourism to meet all legal conditions for investment and land management as well as the relevant regulations for choosing contractors.

The City Garden Company has kicked off work for a tower of 478 high-end apartments ranging from 70 to 161 sq.metres in HCM City.

The Promenade Tower, the second phase of the City Garden Project, is developed on 2.3 ha of land in Binh Thanh District, of which 70 per cent is green space.

This tower is designed by the renowned architect Koos de Kiejezer of DKO company.

The Element Design Studio of Singapore is responsible for landscape design, which will be carried out by local contractor Cotecons. It is expected to be completed in June next year. Amenities include a children's playground, jogging path, swimming pools, BBQ garden, restaurants and convenience stores.

Bank credit outpaces deposits, lending rates

Bank credit growth so far this year stands at 7 per cent year-on-year, outstripping deposit growth, which is only 5 per cent, Dau Tu Chung Khoan newspaper reported.

Reports from the VPBank Securities Company (VPBS) and BanViet Securities Company predict full-year credit growth to exceed the target of 13-15 per cent.

The highest growth has been registered in lending to the property sector — 10.9 per cent – as it accounted for 8.3 per cent of total outstanding loans as of end July.

VPBS analysts attributed the rapid credit growth to reasons like the reduction in interest rates.

Deposit interest rates declined by 0.2-0.5 percentage points, allowing lending interest rates to fall by 0.3 percentage points, they said.

With the prices of commodities and fuel falling in the global market since late last year, companies have been able to cut production costs, leading to a recovery in their business and increased credit demand as a result.

The chief of a commercial bank in HCM City said the positive signs in the country's economy encouraged companies to expand their production and trading activities for which they need more money.

Analysts considered the strong credit growth as a sign of the country's economic recovery, but expressed concern about banks' liquidity and the increase in bad debts.

Nguyen Tri Hieu, a senior economist, told Dau Tu Chung Khoan, "Viet Nam's banking sector always faces an imbalance between deposits and credit, which threatens banks' liquidity."

In recent years, because of the high inflation, the State Bank of Viet Nam (SBV) has had to apply a tight money policy, sharply increase interest rates, and reduce lending to non-production sectors.

As a result, inflation has declined significantly and the imbalance between deposits and credit has been mitigated, Hieu said.

But the higher growth of credit than deposits means banks' liquidity is not as good as it was a few months ago, he said.

This is underlined by the fact that banks, the biggest buyers of government bonds, are not too keen on them now. Consequently, the percentage of government bonds bought in the primary market fell dramatically from 68 per cent in the first week of July to 39 per cent in the second.

Analysts also expressed fears about a possible increase in non-performing loans.

Hieu agreed saying that when credit is loosened bad debts are likely to rise.

According to SBV figures, by late March the banking sector's bad debts ratio had risen to 3.81 per cent from 3.24 per cent late last year.

Analysts said bad debts are always banks' biggest worry, including big ones. Even Vietcombank, which boasts the best financial management in the banking industry, has a bad-debts problem.

Over the first half of this year its bad debts climbed to 2.43 per cent of total loans outstanding, higher than its year-end target of 2.3 per cent.

Chairman Nghiem Xuan Thanh said the bank's credit quality is worrying because its provision for bad debts has reached an all-time high level while bad debts recovered have been much lower than planned.

Firms to issue their own certificates of origin

Vietnamese enterprises have been urged to actively learn about the preparations for self-issuing a certificate of origin before the upcoming free trade agreements (FTAs) go into effect.

Tran Thi Thu Huong, director of VCCI's Centre for Trade Paper Attesting, said at a workshop in Ha Noi on Thursday that the mechanism for self-issuing a certificate of origin is new to Viet Nam but is quite popular in many other countries.

In the process of negotiating FTAs, the negotiators gave high importance to self-issued certificates of origin for enterprises, calling it a goal that must be achieved, she added.

Explaining the mechanism, the director said responsibility for certifying the origin of goods would be transferred from authorities to enterprises.

Enterprises will carry out the necessary procedures and satisfy legal conditions to determine and certify that commodities have met standards related to their origin.

They must also take responsibility for ensuring the accuracy of this certification.

The self-certification of origin aims to facilitate import and export activities and reduce administrative procedures.

However, most Vietnamese enterprises lack information on the process of self-certification, Huong said.

The director said Swiss and Norwegian experts had noted that the self-certification mechanism has existed in their countries for 40 years, but only about 1,000 enterprises have used it in Norway.

The small number of participants is attributed to enterprises failing to meet the necessary conditions for self-issuing certificates.

Meanwhile, many enterprises that can meet the conditions are not confident and still need agencies to help them complete the attestation.

Analysis of the process will play an important role in helping enterprises self-certify the origin of their products, and the role of customs will need to be enhanced to attest to the accuracy of these cexrtificates, Huong said.

To avoid problems when applying the mechanism for self-certification of origin, enterprises should have a firm grasp on the production process and should understand the associated regulations, she said.

The director also recommended that enterprises maintain document storage systems and build a team to manage verification requirements when needed.

HCM City courts UK investment

British companies can participate in infrastructure projects in which HCM City is soliciting foreign investment, the city administration has told a visiting UK Government delegation.

Tat Thanh Cang, deputy chairman of the People's Committee, told the visitors led by Minister of State for Small Business, Industry and Enterprises Anna Soubry at a meeting on Thursday that the city is now focusing on four key sectors — electronics - IT, mechanical engineering-transport, chemicals-plastics-rubber, and food processing.

Investment priority would also be given to developing public transport, including eight metro routes, ports and logistics, he told them.

Some 60-70 per cent of Viet Nam's exports and imports go through seaports, and so investment in this sector would be profitable, he added.

Soubry said HCM City offers British companies investment opportunities, especially in large infrastructure projects in which they have extensive experience.

She also expressed interest in developing deep-sea ports and the Thu Thiem new urban area, saying British companies hope to participate in those projects.

The British visitors — part of a larger delegation to Viet Nam led by PM David Cameron that wrapped up its visit later the same day — included many top business executives from industries like construction, electronics, power, and infrastructure besides investors.

Japanese firms flock to invest in HCM City

Japanese businesses continue to regard Viet Nam, especially HCM City, as a potential investment destination, a forum heard yesterday in HCM City.

Speaking at the Viet Nam-Japan Investment and Trade Promotion Forum, Mukuta Satoshi, senior managing director of Keidanren (Japan Business Federation), said Japanese firms had invested a total of US$37.3 billion in Viet Nam as of the end of last year, the second highest among all countries and territories investing in the country.

HCM City is the most important investment destination in Viet Nam for Japanese companies, with as many as 765 operating here, he said.

"Viet Nam is considered a gateway for Japan to ASEAN markets," he said, adding that the establishment of the ASEAN Economic Community by the end of this year would enhance the role of Viet Nam as a business base in the global supply chain strategy.

Mukuta was leading a delegation of executives from 24 large Japanese companies involved in processing and manufacturing, garment and textile, transport, construction, real estate, finance, banking, insurance, retail, and other industries, who came to explore the city's investment and business environment.

Nakajima Satoshi, the Japanese envoy in HCM City, said the visit showed Japanese investors want to invest in Viet Nam, and believed they would continue to invest in the country.

Le Thanh Liem, deputy chairman of the city People's Committee, said the city hoped the Japanese Government and business community would continue to share management experience, transfer technology, provide ODA support, and invest in projects to develop infrastructure, human resources, support industries, and hi-tech agriculture.

"The city will always welcome, accompany and create favourable conditions for foreign investors, including Japanese, seeking long-term investment and business opportunities in the city."

The forum would provide a chance for businesses from the two countries to understand each other's needs, he said.

Pho Nam Phuong, director of the Investment and Trade Promotion Centre of HCM City (ITPC), said the city has 17 industrial parks and export processing zones with a total area of 4,000ha. There are plans to establish seven more IPs with a combined area of over 2,000ha, she revealed.

Speeding up infrastructure work and attracting investment into new urban areas like Thu Thiem and Hiep Phuoc Port and others in the north-west are also in the plans, she said.

Besides, the city is soliciting foreign investment in many socio-economic projects, she added.

The Department of Investment and Planning introduced key projects in which the city sought Japanese investment like the monorail line No 2 linking National Highway 50 with the Thanh Da - Binh Quoi Urban Area in Binh Thanh District, and construction of an underground mall at the Ben Thanh Central Station.

It also highlighted the city's potential, favourable conditions and investment policies.

Organised by ITPC, the event also attracted executives from 50 Japanese firms operating in HCM City and more than 200 Vietnamese companies.

It was followed by a business-to-business meeting to enable a further exchange of information and co-operation opportunities.

New property law piles risk on banks

A proposed decree to guide the recent amendments to the Law on Real Estate Business that requires housing developers to get guarantees from banks before they can sell or lease out units needs to be more specific to ensure safety, a developer has warned.

Nguyen Van Duc, deputy director of Dat Lanh Real Estate Company, told a seminar held in HCM City to collect feedback on the draft decree that generally a developer needs bank loans for land clearance and buying land use rights and then for construction.

Now, with the guarantee, all the risks pile on banks if a project gets into trouble, he pointed out.

In reply, Vu Van Phan, deputy head of the Ministry of Construction's Housing Management and Real Estate Market, said the State Bank of Viet Nam would issue a circular to address this.

Phan said the guarantee is to safeguard buyers' rights since many people who paid to buy apartments had been unable to get back their money when projects stalled.

Le Hoang Chau, chairman of the HCM City Real Estate Association (HoREA), said the government should allow insurance companies to join the business (provide the guarantee) to offer developers a wider choice in sharing the risk.

Nguyen Trong Ninh, permanent deputy head of the Ministry of Construction's Housing Management and Real Estate Market, said that even foreigners who are in the country for just a day are allowed to buy houses.

He also said that foreigners get ownership for 50 years and can apply for a single extension of 50 years at most.

They can resell their assets with the buyers getting the title for the remaining duration, he said.

Participants said the new owners should enjoy another 50 years.

The amendments to the housing and real estate business laws took effect on July 1, but decrees guiding their implementation are yet to be issued.

Chau said foreign institutions and individuals are allowed to own 30 per cent of the total number of units in an apartment project but only 10 per cent of houses if a development comprises both apartments and houses. He called for greater flexibility in places like Ha Noi, Da Nang, Binh Duong, Dong Nai, and HCM City, especially areas like Phu My Hung and Thao Dien in HCM City that attract a large numbers of foreigners.

"Local governments should be empowered to make decisions appropriate for their situation."

Yoshida Akio, chief representative of Japanese-owned Kitakei Co, which sells housing materials and equipment and construction work systems, said the Japanese community in Viet Nam wanted to buy houses to live in the country for a long term, adding the 30 percent rate should be increased to 40 or 50 per cent.

Circular 9 opens NPL activity to foreign, local investors

State Bank of Viet Nam's (SBV) Circular 09 is expected to encourage foreign investors to buy non-performing loans (NPLs) from local financial institutions, the HCM City Securities Corporation (HSC) said on Thursday.

HSC said that this could be a breakthrough for local organisations since an open market would help the Vietnam Asset Management Company (VAMC) and banks reduce NPLs in the economy.

HSC said that the circular, which takes effect in September, would control the purchase of NPLs between institutions in the finance-banking sector by defining the responsibilities of seller, buyer and other stakeholders.

The VAMC is a leading local entity founded by SBV in 2013 to buy NPLs from local financial institutions and sell them to investors.

In total, VAMC has purchased VND158 trillion (US$7.26 billion) of NPLs but sold only five per cent, VND7.8 trillion ($358.8 million), to investors.

In order to sell more NPLs, and reduce the rate of NPLs-to-total capital to three per cent by the end of this year, VAMC needs to find investors that are able to buy NPLs in large volumes, according to HSC.

However, local organisations will continue to be the main buyers of NPLs because overseas investors are not likely to do so in the near future. Sales will remain low until the value of NPLs are equal to their market price.

The circular will also prevent financial institutions from buying and selling NPLs to each other as a way to temporarily reduce their bad debt ratios.

Circular 09 states that a company must provide all required legal documents and financial records before it can sell any of its non-performing loans or bad debts.

Financial organisations must register, get SBV's approval and have a ratio of NPLs-to-capital under three per cent.

Asset management companies that belong to a financial institution are able to buy NPLs from another financial institution only if its parent has a bad-debt ratio below three per cent.

A financial institution cannot sell its NPLs to its subsidiaries, except ones whose restructuring plans are approved by the Government and the SBV.

A financial institution cannot buy back their NPLs and must issue an internal regulation on buying and selling NPLs that differentiate NPL auditing from NPL buying-selling.

NPL sellers are able to negotiate with buyers about contract details if the seller wants to sell a part or the whole NPL to several buyers.

NPLs must be recorded, reported to and tracked by the SBV in accordance with regulations.

Nearly 1.7 billion USD of FDI pours into real estate market

The country's property market attracted 1.69 billion USD in foreign direct investment (FDI) for 15 projects in the first seven months of 2015, according to the Foreign Investment Agency.

This figure accounted for 19.3 percent of the total FDI capital of 6.92 billion USD.

Figures from the agency showed that the real estate sector took second place in attracting FDI capital during the period. In HCM City alone, four real estate FDI projects received an investment licence, with total registered capital of 1.31 million USD.

Experts forecast that FDI pouring into the property sector would see a surge by the year-end month thanks to the amended Law on Housing 2014 and Real Estate Trading, which allows foreign buyers and overseas Vietnamese to own houses in Vietnam for 50 years.

JETRO supports Ha Giang province in investment attraction

Representatives of the Japan External Trade Organisation (JETRO) Japanese businesses worked with leaders of northern mountainous Ha Giang province on July 31 in an effort to help the locality lure more Japanese investors.

Speaking at the working session, Atsusuke Kawada, Chief of the JETRO Office in Hanoi, spoke highly of the province’s advantages and potentials as well as its investment attraction plan to fuel economic growth.

At the end of this year, the JETRO Office in Hanoi and dozen of Japanese firms will provide consultancy to help Ha Giang province appeal more new Japanese businesses to the locality, he noted.

Secretary of the provincial Party Committee Trieu Tai Vinh said the province always open its door to foreign investors and pledged to support them with consistent preferential policies while ensuring political stability and social order.

He hoped that the JETRO Office would assist the locality in investment promotion.

Mountainous Ha Giang province is home to spectacular Dong Van Karst Plateau, which was recognised as a member of the Global Network of National Geoparks (GGN) in 2010, making it a very potential spot to develop eco-tourism, cultural and adventure tourism.

It also has the Thanh Thuy International Border Gate that links Vietnam and Yunnan province of China alongside Binh Vang Industrial Park in Vi Xuyen district and Nam Quang Industrial Cluster in Bac Quang district, which are expected to give a push to the local economy.

Besides, the locality also has 9,000 hectares of valuable medicinal herbs.

Conference examines economic aspects of Vietnam-US relations

Trade is considered the most successful cooperation field between Vietnam and the US in the 20 years since they normalised their diplomatic ties, as heard at a conference in Ho Chi Minh City on July 31.

Speaking at the event, co-organised by the Vietnam Union of Friendship Organisations and the Vietnam-US Friendship Association in HCM City, Deputy Minister of Industry and Trade Tran Tuan Anh affirmed that trade and economics have contributed importantly to the sustainable development of the bilateral ties.

Once the Trans-Pacific Partnership (TPP) agreement is signed, the two countries’ partnership will be lifted to a new level, he said, adding that the increased opportunities brought by the agreement will be coupled with increased challenges which require the Government, businesses and people to take active measures to turn challenges into opportunities.

US Consul General in the city Rena Bitter noted that over the past two decades, the two countries have enjoyed numerous achievements in bilateral relations with the value of trade hitting 35 billion USD in 2014 from 500 million USD in 1995.

Educational cooperation has also seen positive results, she said, adding that the number of Vietnamese students in the US is ranked eighth in the foreign student community in the country.

The relationship will be enhanced once the Harvard-affiliated Fulbright University Vietnam is opened in Ho Chi Minh City, she added.

Huynh The Du, a lecturer for the Fulbright Economics Teaching Programme, said that the US is an extremely important element in Vietnam’s international integration process. The TPP, with the participation of both the US and Vietnam, will help Vietnam enter a new stage of economic integration.

Public property needs better management

The use of public property must be managed transparently to minimise legal loopholes that results in the misuse of the property by individuals and agencies, it was agreed at a recent meeting held by the Ministry of Finance on the matter.

Public property includes land, houses, cars and other assets which are worth more than 500 million VND (23,000 USD).

According to the National Database, as of December last year, the total value of public property had reached nearly 1,000 trillion VND (45.8 billion USD).

Property worth 690.5 trillion VND (31.6 billion USD) was managed by more than 59,000 government agencies, accounting for 69 percent of total assets.

Speaking at the meeting, the head of the ministry's State Asset Management Department, Tran Duc Thang, said several agencies allocated with public property had used their capital to increase operational efficiency whilst giving pay rises to employees and making additional contributions to the State Budget.

However, the shortcoming remained in the management and use of public property. Many assets managed by certain State-owned enterprises had been misused, said Thang.

He said the mechanism to allocate public capital to self-financing enterprises allowed them to use the assets to make a profit.

However, the method of defining the value of public property and self-financing enterprises was not up to scratch.

The ministry would review and adjust processes and procedures used to define the value of property as well as increase the number of government self-financing agencies that receive public assets, Thang told the meeting.

Quang Ninh, HCM City join hands to develop tourism

Tourism agencies in HCM City and the northern province of Quang Ninh are working closely to develop tours between the two localities, with a promise to launch new tourism products, tourism officials have said.

HCM City is a potential domestic tourism market for residents of Quang Ninh, as an increasing number of local residents have more disposable income, Trinh Dang Thanh, deputy director of Quang Ninh province's Culture, Sports and Tourism Department, said at a workshop held in HCM City on July 31.

In addition, many Vietnamese people living abroad have relatives in HCM City. When they visit, they often take domestic tours.

Domestic tourism would help curb the recent fall in international visitors to the country, Thanh added.

More than 60 percent of travel companies and providers of tourism-related services such as hotels, restaurants and resorts have committed to cut prices by 20-40 percent to encourage domestic tourism under the National Tourism Stimulus Programme.

Quang Ninh needs to focus its investment to attract more tourists from HCM City to local sites such as Quang Ninh Museum and hydroplane flight services, said Nguyen Thi Khanh, deputy chairwoman of HCM City's Tourism Association

Quang Ninh has more than seven million visitors every year, including five million domestic visitors, according to the provincial Culture, Sports and Tourism Department.

However, the number of tourists from HCM City accounts for only 7 percent of the total number of domestic tourists to the province.

In June, HCM City and six northern provinces of Quang Ninh, Bac Ninh, Bac Giang, Hai Duong, Hung Yen, Lang Son and Hai Phong city signed a cooperative agreement for tourism development.

The agreement covered five main areas: tourism products, promotion campaigns, training of human resources, investment funds and tourism management.

FDI enterprises promote use of Vietnamese goods

Foreign direct invested (FDI) enterprises have created a momentum for developing products made in Vietnam, heard participants at a conference entitled "Proud of Vietnamese goods", held in Hanoi on July 31.

Vo Van Quyen, director of the Domestic Market Department under the Ministry of Industry and Trade, said more than 200 Vietnamese products were exported throughout the world through foreign firms.

The figure indicates the increasing contribution of the FDI sector in promoting the programme, "Vietnamese people give priority to using Vietnamese goods," Quyen added.

Vietnamese goods, produced by both local enterprises and FDI firms in Vietnam , have attained a certain position in distribution units. For instance, after five years of carrying out the programme, the portion of Vietnamese goods at supermarkets accounted for 90 percent, with considerable contributions from FDI companies.

The survey conducted last May revealed that 92 percent of consumers are aware of the programme, 63 percent of these people give priority to choosing Vietnamese goods, and 54 per cent of them recommend that their relatives and friends buy Vietnamese goods.

Yet, three problems could be seen, including bumper harvests and decreasing prices, a lack of an established value chain and pressure from the opening of local markets. He added that the issues could be partly resolved if FDI companies operating in Vietnam actively participated in the programme.

In particular, he said he expected FDI companies to pay attention to connecting domestic firms, while developing support industries for Vietnam .

Sharing such ideas, Dang Xuan Quang, deputy head of the Foreign Investment Agency under the Ministry of Planning and Investment, reiterated that Vietnamese goods have not only been produced by wholly domestic companies, but also by FDI businesses in Vietnam.

He noted that this view should be integrated from policies to special actions to prevent discrimination between the two kinds of goods.

Nguyen Mai, Chairman of the Vietnam Association of Foreign Invested Enterprises (VAFIE), added that some views should be changed to further promote the programme. Accordingly, Vietnamese goods should include products that have been produced by large international groups, such as Samsung, Intel, Nokia, Canon and LG in Vietnam .

Han Myoung Sup, Samsung Vietnam 's general director agreed, saying they have not only wanted to be the largest FDI firms or largest exporters, but also the national business of Vietnam.

"We expect to contribute to the country's socio-economic development, as well as improving the quality of life of the Vietnamese people by manufacturing good products", he said.

Samsung has carried out programmes to meet their commitment and has sought partners to develop Vietnam 's support industries for its products, while paying attention to training employees.

Today, the country has 700 supermarkets and 100 commercial centres, while just in Hanoi there are 100 supermarkets and 20 commercial centres.

However, modern retail channels have accounted for 20 per cent of total retail activities in the country, and this rate is expected to increase by 30 to 40 per cent from 2020 to 30.

Further, Vu Vinh Phu, chairman of the Hanoi Supermarket Association, said co-operation between production and distribution had not been enhanced, resulting in excess inventories, especially in agricultural products.

"The country should further promote connection chains to bring Vietnamese goods into supermarkets. This could help Vietnamese goods become more popular and be sustainably developed," Phu said.

Nguyen Thai Dung, deputy general director of Big C Thang Long, said his company had always given priority to Vietnamese goods, as 95 per cent of its products are manufactured in Vietnam .

Meanwhile, a representative from Hapro said their retail system distributed some 20,000 products, of which 80 per cent were locally produced.

Deputy Prime Minister Hoang Trung Hai has ordered the implementation of measures to remove difficulties and promote the export of agro-forestry-aquatic products.

Accordingly, the State Bank of Vietnam (SBV) will continue working with the Ministry of Agriculture and Rural Development to effectively implement monetary policy management measures to increase business access to bank credit programmes to support manufacturing and the export of agro-forestry-aquatic products.

The bank said it has specifically designed preferential credit programmes to facilitate the manufacturing and export of agro-forestry-aquatic products.

Credit organisations are encouraged to balance capital sources and reduce loan interest rates for prioritised fields – including agriculture, rural development and exports.

They are allowed to restructure business debt payment deadlines while improving consumer trust.

The maximum interest rate for short-term loans in VND for prioritised sectors is 7 percent annually.

The SBV also provides foreign currency loans for agriculture firms at reasonable interest rates and expands Government Decree 55/2015/ND-CP on supporting credit loans for agriculture and rural development, which took effect in July 2015.

According to the Ministry of Agriculture and Rural Development, earnings from the export of agro-forestry-aquatic products in June reached 2.6 billion USD, bringing the sectors’ total export revenues in the first half of the year to 14.42 billion USD.

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