Seafood exports forecast to top $8b mark in 2015

Seafood exports in 2015 are expected to increase slightly from last year to top US$8 billion, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP).

The country earned $7.9 billion from seafood last year, a year-on-year increase of 18 per cent, with shrimp exports rising by nearly 28 per cent.

Speaking at a meeting in HCM City last Tuesday, Nguyen Hoai Nam, deputy general director of VASEP, said shrimp export this year would remain at around $4 billion.

The US, the EU, Japan, and China are the main importers of Vietnamese shrimp.

Similarly, tra fish exports are expected to remain unchanged at $1.77 billion, he said.

Tuna exports are expected to increase by 5 per cent to $510 million as the economies of the main tuna importing countries like the US and Japan recover, he added.

Duong Ngoc Minh, chairman and general director of major tra fish exporter Hung Vuong Corporation, said several free trade agreements the country has signed or is negotiating — like the Trans-Pacific Partnership, Viet Nam-EU FTA, an FTA with the Customs Union of Russia, Belarus and Kazakhstan — offer great prospects for seafood exports.

In addition, the Government's recent decision to scrap the 5 per cent value added tax on animal feed would help seafood producers cut costs, he said.

But they would face difficulties exporting, he warned.

A weakening Japanese yen would affect demand there, he said.

Besides, the US, one of the key markets for Vietnamese shrimp, has slapped high anti-dumping tariffs on the product, putting Vietnamese shrimp at a major disadvantage, he said.

But according to the association, shrimp exports would continue to rise in the first half of the year since the industry in other countries like China and Thailand has not yet recovered from the early mortality syndrome (EMS) disease.

Delegates at the meeting urged the Government to strengthen quality management of the entire shrimp and tra fish farming process — from brood stock and animal feed to processing — to improve quality.

To meet export orders, seafood processors and exporters bought raw seafood worth more than $1 billion from other countries, a 44 per cent increase compared to 2013.

Businesses would continue to import shrimp, tuna and other saltwater fish this year to meet their export targets, Nam said, adding that such imports are forecast to go up by 20 per cent to $1.2 billion.

Better standards help lift fruit, vegetable exports

Fruit and vegetable exports increased strongly last year, reaching nearly US$1.5 billion, up nearly $500 million from the preceding year, according to the Ministry of Agriculture and Rural Development.

The exports were sold to more than 50 nations and territories, with China, Japan, the US, and South Korea the main buyers.

China continued to be the biggest market, accounting for 26.4 per cent of the exports in the first 11 months of last year.

In addition to exporting fresh fruits and vegetables, in recent years more and more firms have invested in modern processing technology to raise export value, said Nguyen Van Ky, general secretary of the Viet Nam Fruit and Vegetables Association.

Local exporters have started to use advanced preservation methods like irradiation to satisfy demanding markets like Japan and the US, the association said.

With importing countries tending to increase their quality, hygiene and food safety requirements, the sector has had no choice but to apply Good Agricultural Practices, it said.

Viet Nam's varied geographic and climatic conditions allow for a diverse range of fruits and vegetables to be grown.

Global fruit demand is expected to continue rising in the coming years, giving the country an opportunity to boost exports, the association said.

The country also imported fruits and vegetables worth $521 million last year, a year-on-year increase of 28.5 per cent, the ministry said.

Thailand, China, Myanmar and the US were the main suppliers.

The fruit and vegetable sector enjoyed its highest-ever trade surplus, with $956 million, in 2014.

Stocks rebound as year comes to close

Although shares were traded in only three sessions last week, the market rebounded strongly as 2014 ended.

While the VN-Index rose by 1.37 percent to 545.63 points on the HCM City Stock Exchange, the HNX-Index on the Ha Noi Stock Exchange rallied by 0.67 per cent, reaching 82.98 points.

Also, blue chips were among the best performing groups, with the VN30 rising 3.3 per cent.

The average trading values and volumes in the HCM City Stock Exchange were VND1.67 trillion (US$78 million) and 104.6 million shares, respectively, while those in the Ha Noi Stock Exchange were VND613.35 billion ($29.3 million) and 53.4 million shares, respectively.

Furthermore, global oil prices plummeting to a six-year low caused sluggish trading in shares of oil and gas companies such as GAS, PVD, PET, PVT and PXS. However, bottom fishing activities last Tuesday triggered the flow of cash and boosted general demand, with money being poured primarily into OGC, HAR, FLC, ITA, KBC, VHG and ASM.

This trend continued on Wednesday, the last trading session of the year, and led to a series of shares reaching their ceiling prices, particularly KLF, HQC, VHG, ITQ, OGC, ASM and HAR. Altogether, 80 stocks hit the daily increase limit.

Of note, only 80 of the 661 listed codes declined.

Moreover, the market's recovery last week reflected the year-end psychology factor. Analysts of FPT Securities alleged that it was an unsubstantial increase and that the market needed to see more improvement in liquidity.

According to Tran Duc Anh from Bao Viet Securities, as the domestic market consistently saw a surge in January in the last four years, the scenario may continue this month, as well. After a short rally, the condition would depend on related information, he said.

Furthermore, foreign investors were net buyers last week by VND302 billion. Their net buying value of the year amounted to more than VND93.7 trillion. In total, the value of transactions carried out by foreign investors last year was some VND150 trillion, according to vietstock.vn.

Holding a large number of influential stocks, trading activities by foreign investors have been creating significant impacts on the Vietnamese stock market.

Exports soar to new heights as growth accelerates

Government data estimated Vietnam’s gross domestic product grew a spectacular 5.98% for 2014 faster than the year 2013 expansion rate of 5.42% and higher than the government’s growth target of 5.80%.

The country’s economic growth was broad based and hitting on all cylinders for the year, driven by strong exports from foreign invested enterprises (FIEs), according to the General Statistics Office (GSO).

The GSO said exports by FIEs accelerated 15% when compared against 2013 and accounted for 67.7% of the nation’s cumulative total exports for the year.

Overall exports for domestic and FIEs sped up 13.6% on-year to US$150 billion, while imports would likely spurt by 12.1% to US$148 billion when the final tabulation is completed resulting in a trade surplus of US$2 billion.

The liquidity provided by the steady inflow of foreign investment into FIEs has helped the country boost its exports in a number of sectors, most notably in shipments of smartphones and tablet computers spearheaded by Samsung Electronics Co.

Samsung was another hallmark for 2014 as it has latched on to Vietnam as its production base and may be an omen of good things to come as other manufacturers line up and jockey for position to relocate to Vietnam.

The figures clearly indicate the economy is recovering and are refreshing news for Vietnam, which has been struggling to revive its economic growth in recent years, amidst problems with low domestic demand and nonperforming bank bad debts.

The most notable yellow caution flag in the GSO statistics was in domestic retail sales.  They rose by only 6.3%, which is actually a lower rate than in previous years, and this statistic seems to be the Achilles heel, or weakness, that weighs heavily on the viability of economic sustainability.

Footwear exports crossed their latest threshold in 2014 breaking the record book in terms of export revenue, which gained momentum of 18% on-year tallying in at US$12 billion, making Vietnam a top ten global footwear exporter.

The preferential tariff reductions brought about by the EU Generalized System of Preferences (GSP), which went into effect from January 2014, helped the sector’s exports achieve an 18% boost said Phan Thi Thanh Xuan, secretary general of Vietnam Leather and Footwear Association.

Other exports that gathered speed for the year included telephones and components, which were up by over US$24 billion, garments, ups nearly US$21 billion and agro-forestry and seafood, up nearly US$31 billion.

Vu Huy Thu, Director of Dai Duong Xanh (Blue Ocean) Company drove home the point that his company expanded exports by focusing on product quality as opposed to elaborate marketing campaigns to promote a brand name.

If a company focuses on quality, the brand name recognitions will most certainly follow, Thu says.

It has been a good year all around for exports and all the economic indicators point to 2015 as another good year for exports. The GSO said it would continue to prioritize macroeconomic stability in 2015, targeting a GDP growth of 6.2%.

Vietnam sectors upbeat on signing TPP in 2015

The garment and textile industry is one of the Vietnam’s leading economic sectors, with roughly 4,000 enterprises, grossing on average in excess of US$20 billion in revenue annually and comprising 15% of GDP.

The sector is listed as one of the world’s top 5 largest with garment and textile products currently shipped to more than 180 nations around the globe, principally in the US, Europe and Japan.

Leading market analysts are sanguine on the prospects for breakthroughs the TPP will create optimistically forecasting it could increase exports past the US$20 billion benchmark, a threefold increase when compared against the US$8.6 billion in 2013.

Tran Viet, head of the market research department under the Vietnam National Textile and Garment Group says that Vietnam’s garment and textile exporters are anxiously waiting for the signing of the TPP trade pact.

Competitive capacity will be the main challenge determining success or failure in the garment and textile sector after the TPP is signed Viet says adding that, with the bright prospects for the signing of TPP in 2015, Vietnamese partners have increased their orders in Vietnam.

Analysts also predict that the leather and footwear industry will see remarkable gains when the TPP agreement is signed. At present, the nation has more than 500 leather and footwear manufacturers, which generate an estimated 600,000 jobs.

Ms Phan Thi Thanh Xuan, general director of the Vietnam Leather, Footwear and Handbag Association says foreign invested enterprises are beginning to develop domestic supply chains, which is a positive development for the country.

These supply chains will give fresh impetus to the strong growth of the leather and footwear sector by making the industry more competitive in the global marketplace, Xuan added.

Last but not least, the seafood industry also stands to benefit tremendously from the TPP analysts say. At present, the US and Japan are the two largest seafood export markets of Vietnam.

The seafood sector has experienced steady growth over the past three years, witnessing export revenue of US46.2 billion in 2012, and US$6.8 billion in 2013 and US$7.9 billion in 2014.

Vu Huy Thu, general director of Blue Ocean Development and Investment JSC says to be competitive in the global seafood marketplace exporters need to have a solid understanding of technical standards and the ISO and Afsat certification process.

They especially should obtain a clear and comprehensive understanding of their customers’ requirements, to comply with both domestic and international standards.

Joining the TPP agreement will bring practical benefits to Vietnamese business enterprises in the international integration process. According to the market analysts and apart from opportunities, businesses should exert great efforts to cope with the challenges it poses.

If not, they will lose out in the home turf when the agreement takes effect. This requires each business to devise a proper development strategy in the coming time they caution.

Nghe An expects to lure VND100 trillion of investment capital

Nghe An central province has set a target to attract around VND100 trillion of invested capital, including VND50 trillion from foreign direct investment (FDI) in the 2015-2020 period.

To this end, the province will implement consistent measures to lure investment projects, considering it a key task to spur local socio-economic development.

It will facilitate investors’ operation by establishing land funds, giving incentives and supporting them in recruiting workers and building raw-material areas.

It will continue improving the investment environment, aiming to top the list of 30 provinces and cities nationwide in provincial competitiveness index (PCI).

Currently, the province is calling for investment into agro-forestry, fishery and industry which are the provincial strength.

Last year, Nghe An licenced 105 investment projects worth more than VND18,500 billion, a rise of 45.83% in number projects and 43.74% in capital against a year earlier. The projects have been put into operation and generated 8,000 jobs.

Some large-scale projects which are being carried out in the province include Hanoi-Kim Liem urban and hotel complex (VND720 billion), Lan Chau-Song Ngu eco-tourism complex (VND1,969 billion), Thanh Thanh Dat wharf (VND560 billion), Masan Food project (VND1,200 billion), Ton Hoa Sen (VND2,300 billion), Nguyen Kim supermarket (VND550 billion) and Vingroup (VND2,392 billion).

High hope for 2015 business climate

The majority of enterprises and business associations said the business environment will be better in 2015, Vu Tien Loc, Director of the Vietnam Chamber of Commerce and Industry (VCCI) told at a year-end meeting of southern associations and businesses.

Loc asserted that the Government’s efforts in maintaining the macro-economic stability and reining in inflation have proved efficiency, enhancing business confidence and helping enterprises better design their production strategies to overcome difficulties.

However, experts warned that Vietnamese firms still face competitiveness, while private companies, especially small and medium-sized enterprises are still difficult.

Dang Hoang Giang, Vice President and Secretary General of the Vietnam Cashew Association, said businesses share hope that in 2015, the Government will continue rolling out effective measures to remove obstacles in tax and customs policies.

They also expect further favourable investment environment and more support in settling trade disputes to better protect legitimate rights of Vietnamese firms and goods in the international arena.

Meanwhile, Nguyen Thi Anh Thu from the Ho Chi Minh City Mechanics Association proposed stressed that enterprises are in need of a fair and equal playground, as well as consultations on how to improve competitiveness for global integration.

At the same time, Huynh Van Minh, Chairman of the Ho Chi Minh Business Association, proposed that associations and firms should evaluate both economic prospects and challenges for 2015, thus mapping out suitable development strategies.

Minh also held that the business circle should increase feedbacks to policies to promote their efficiency.

The VCCI leader noted that since the Vietnam Enterprise Law was introduced, over 700,000 firms have been set up. However, only 500,000 companies maintain their operations, with 40 percent seeing profit.

Japan, Vietnam cooperate in urban development

Vietnam Minister of Construction Trinh Dinh Dung and Japan Minister of Land, Infrastructure, Transport and Tourism (MLIT) Ohta on January 3 signed construction and urban development cooperation agreements in Hanoi at the conclusion of negotiations.

At the signing ceremony, Minister Trinh Dinh Dung affirmed the agreements would deepen the relationship between the two nation’s construction sectors and ministries. He also expressed his gratitude to Minister Ohta for Japan’s past ODA assistance.

Mr Ohta in turn expressed his desire to continue to broaden cooperation between the two nations in the time ahead, adding that in recent times the two ministries have successfully shared experiences in state management and urban development.

The ministries have additionally signed a number of memorandums of understanding to cooperate in fields such as water supply and eco-projects in Vietnam, laying a solid foundation for the bilateral ties of friendship between the two nation’s peoples and governments.

Bonsai economy booms in Mekong Delta

Many farmers in the Cho Lach district of Ben Tre province in the Mekong Delta are earning high profits from selling bonsai ornamental trees and shrubs for the New Year festivities.

In addition, many households in Cho Lach grow various kinds of medical herbs, which can be molded into various shapes and sizes for use in decorations during the holidays to liven up the season.

Apart from fruit trees and pets, local farmers are now keen on these ornamental trees and shrubs that possess a variety of differing beautiful colours and fragrances to meet the increasing demand of customers during the New Year.

Prices range from several to tens of millions of Vietnam dong (VND). It takes about six months to create a New Year bonsai, says Do Tien Binh, a farmer in the Vinh Thanh commune in Cho Lach district.

Mekong Delta's exports target US$11.9 billion

The Mekong Delta region has set to gross US$11.9 billion from exports in 2015, according to Deputy Head of the National Steering Committee for the Southwestern Region Nguyen Phong Quang.

The figure will include US$10.2 billion from rice and seafood, up 21% from a year earlier.

Regional localities will grow high-quality 3.3 million hectares of rice on 80 percent of the total rice fields to harvest an output of 25 million tonnes of paddy rice.

The committee reported that in 2014, the region’s total export value hit US$11 billion, US$0.7 billion higher than 2013’s figure.

Rice, aquatic products and garments were among hard currency earners of the region during the year with rice and aquatic products accounting for 81 percent of the region’s total revenue with US$8.9 billion, Quang said.

Three foreign ships land in Quang Ninh in the new year

Three foreign ships arrived in Quang Ninh province and handled 66,000 tonnes of goods and 129 containers on January 1.

At 10am, Liberian ship Taio Cosmos with a capacity of 43,000 tonnes landed in Quang Ninh port and handled 33,000 tonnes of wood.

Ship Meraglohari from Syprus arrived on the same day and unloaded 33,000 tonnes of corn.

Meanwhile, another ship from Syprus, the Warnow Mester with a capacity 21,200 tonnes arrived in Cai Lan port and loaded 129 containers.  

In 2014, Cai Lan port handled 6.8 million tonnes of goods and got a revenue of nearly VND300 billion.

Quang Ninh Port Joint Stock Company targets to handle 7 million tonnes of goods and earn VND325 billion by the end of 2015.

German newspaper hails Vietnam’s economic achievements

The Financial Times Deutschland on January 2 praised Vietnam’s political and socio-economic achievements.

The article emphasizes that Vietnam is trending towards a new sustainable growth model, which bases on renovation, high-tech, green economy and intellectual property.

It quotes latest data to show that Vietnam is expected to obtain a growth rate of nearly 6% in 2014, the highest in the past 4 years.

Meanwhile, inflation made a record low of 4.09% over the last decade, lower than the Government’s estimate of 5%.

Experts attributed the low inflation rate to a sharp decline in oil price and the stability of Vietnam Dong. Budget deficit has been contained at 5.7% of GDP.

The country’s exports rose by 13.6% to US$150 billion and imports jumped by 12.1% to US$148 billion. Industrial production index also hit a record high of 7.6% over the past 4 years.

The article wrote that Vietnam’s per capita income is increasing and the country has become an attractive destination for foreign businesses.

Despite slight decline in FDI in 2014, disbursed capital rocketed, mainly from world’s leading groups like Samsung, Microsoft and Intel.

The article quoted a World Bank report as saying that foreign investors have made a positive evaluation of Vietnam’s investment environment, attributing it to political and macroeconomic stability, and high quality and abundant labour forces.

According to the report, last year Vietnam generated more than 1 million new jobs and kept unemployment rate at 2.08%. Many new businesses were set up with high seed funds while the number of bankrupt companies reduced.

The German newspaper also highly valued Vietnam’s economic integration efforts in recent years to ensure sustainable economic development and attract more foreign investment. Accordingly, the country is going to complete negotiation of a number of international free trade agreements with the EU and the Customs Union of Russia, Belarus and Kazakhstan.

Domestic candy brands draw more business

Customers are buying more Vietnamese confectionery products as the quality and design have gotten increasingly better and it remains reasonably priced.

Many Vietnamese confectionery producers have done well with brand promotions that turn them into household names, Ho Quoc Nguyen, public relations director of Big C Vietnam told Phap Luat TP HCM (The HCM City Law) newspaper.

Domestic confectionery products accounted for 90 percent of the products sold in Big C supermarket systems, he said.

Nguyen Thanh Nhan, deputy general director of Saigon Co-op, noted that supermarkets are selling some 600 candy products from 25 domestic companies, accounting for 95 percent of their total inventory.

The reasonable price, good quality and clear origins of domestic products have won the trust of buyers, Nhan said.

A representative of Lotte Mart pointed out that in his supermarkets, Vietnamese sweet products accounted for 56.75 percent, while imported products, 43.25 percent, adding that the advantage held by Vietnamese products lies in their reasonable price.

Another reason for the popularity of Vietnamese confectionary items is that customers are buying fewer sweet products from China due to concerns about their alleged low quality and unclear origins.

Domestic confectionery producers should focus on improving and innovating technology and quality, which will make them stronger competitors, remarked Luu Huynh, marketing director at Pham Nguyen Confectionery Corp.

Huynh said foreign products are better than domestic ones in terms of technology and design. However, in terms of quality, domestic confectionery products are doing well.

Since mergers and acquisitions have recently become a popular trend, Vietnamese producers have the opportunity to re-evaluate their competitiveness and could re-design their plans for the future. By investing more in key products, rather than in advertising, they could boost their product value and increase added value, according to Huynh.

Phan Van Thien, deputy general director of confectionery maker Bibica, claimed that in terms of capital, the finances and marketing strategy of foreign companies surpass those in Vietnam . Therefore, for greater success in the domestic market, firms should introduce unique products.

Bibica is set to introduce a traditional line of products, named Lac Viet, for the upcoming Lunar New Year holiday to reinforce its image as a Vietnamese brand, he revealed.

Producers agreed that non-tariff barriers are necessary to protect domestic makers and prevent the sale of low-quality products.

According to a report from the Business Monitor International, revenue earned by Vietnamese confectionery producers is expected to reach 40 trillion VND (nearly 1.9 billion USD) in 2018.

Tra Vinh invests 450 bln VND in developing craft villages

The southern province of Tra Vinh will inject 450 billion VND (21.4 million USD) into preserving and developing its craft villages between now and to 2020.

Under a project recently announced by the provincial People’s Committee, the locality will spend 246 billion on upgrading village infrastructure and the remaining will be used to build material zones, help businesses access technology and implement trade promotion activities.

This year, the province will focus on solving environmental pollution in two seafood processing villages in Duyen Hai and Cau Ngang districts, said Deputy Chairman of the provincial People’s Committee Nguyen Van Phong,

He revealed that the project aims to bring trade villages’ production value to 615 billion VND (29.3 million USD) in 2015 and 810 billion VND (39 million USD) in 2020.

Tra Vinh is now home to 12 craft villages, mainly in Cang Long, Tra Cu, Hung My and Chau Thanh districts. The villages, operating in beverage manufacturing, seafood processing and floriculture, create jobs for over 11,000 locals.

Nghe An expects to lure 100 trillion VND investment

The central province of Nghe An has set a target of attracting around 100 trillion VND (4.7 billion USD) in investment, including 50 trillion VND from foreign direct investment (FDI), in the 2015-2020 period.

To that end, the locality will synchronously implement measures to lure investment projects, considering it a key task to spur local socio-economic development.

It will facilitate investors’ operation by zoning off land for, giving incentives to and assisting them in recruiting workers and building material areas.

Nghe An will also continue improving its investment environment, aiming to name itself in the top 30 provinces and cities nationwide in provincial competitiveness index.

Currently, the province is calling for investment in agro-forestry, fishery and industry.

Last year, Nghe An granted investment licenses to 105 projects worth more than 18.5 trillion VND (880 million USD), representing increases of 45.83 percent in number and 43.74 percent in value against a year earlier. The projects have been put into operation and generated 8,000 jobs.

Some large-scale projects include Hanoi -Kim Liem urban and hotel complex (720 billion VND), Lan Chau-Song Ngu eco-tourism complex (1.97 trillion VND), Thanh Thanh Dat wharf (560 billion VND), Masan Food project (1.2 trillion VND), Ton Hoa Sen (2.3 trillion VND), Nguyen Kim supermarket (550 billion VND) and Vingroup (2.39 trillion VND).

Southern region leads nation in FDI attraction

The southern region attracted 7.21 billion USD worth of foreign direct investment (FDI) in 2014, according to the Ministry of Planning and Investment's Foreign Investment Agency.

The recorded value accounted for 35.9 percent of the total FDI registered in the country, which pushed the region as the top performer in terms of FDI attraction. From January to December, 644 new foreign-invested projects were licensed while 238 operating ones were allowed to increase capital in the region, which comprises Ho Chi Minh City, Ba Ria–Vung Tau, Dong Nai and Binh Duong. Also included in the region are Binh Thuan, Tay Ninh, Binh Phuoc and Ninh Thuan.

The latest addition has brought the number of licensed projects in the region to a total of more than 9,760 with a combined investment capital of 114.95 billion USD. This amount made up 56 percent of the nation's total number of foreign-invested projects and 45.8 percent of the total FDI registered in the country to date, the agency noted.

Among eight localities, HCM City ranked first with 38 billion USD, or equivalent to 31.1 percent of the region's total FDI. It was followed by Ba Ria–Vung Tau (26.7 billion USD, or 23.2 percent); Dong Nai (22.35 billion USD, or 19.4 percent) and Binh Duong (19.98 billion, or 17.4 percent).

Four remaining provinces, Binh Thuan, Tay Ninh, Binh Phuoc and Ninh Thuan, made up 3.1 percent, 2.1 percent, 0.82 percent and 0.7 percent of the total FDI pledged in the region, respectively.

Singapore was the region's leading source of FDI with 15.31 billion USD, which accounted for 13.3 percent of the region's total FDI. The Republic of Korea came second with 14.96 billion USD, or 13 percent.

During the reviewed period, the manufacturing and processing sector attracted the largest share of FDI, with 57.6 billion USD, or 50.1 percent of the region's total registered FDI. It was followed by estate trading (27.18 billion USD, or 23.6 percent) and hospitality and catering services (6.18 billion USD, or 5.4 percent).

Work starts on upgrading of bridges in Hai Duong

Work began on January 3 on the upgrading of Trang Thua and Cong Neo bridges on National Road 38 B in the northern province of Hai Duong.

The project is carried out from now to June 2016 at a total cost of 300 billion VND (14.3 million USD). This is among of 16 projects of the Vietnam Road Asset Management Project (VRAMP) using loans from the World Bank (WB) to upgrade six national roads in 13 northern provinces.

Speaking at the event, Deputy Minister of Transportation Nguyen Hong Truong said once completed, the two bridges will help to ease traffic congestion and boost the travel of goods and tourism in the region.

The 175.45m Cong Neo bridge will be built 400 metres away from the existing one while the 151.18m Trang Thua bridge will be constructed right at the existing one.

National Road 38B linking Hai Duong and Hung Yen provinces connects to National Highway 5, Hanoi- Hai Phong Highway, and National Road 39 to Thai Binh province.

Tuyen Quang enjoys stable growth in export value

Export value of the northern mountainous province of Tuyen Quang in 2014 hit 61.44 million USD, 1.6 percent higher than the yearly target, said Ma Van Phan, Director of the local Department of Industry and Trade.

Of the value, domestic businesses accounted for up to 60 percent, with their key products such as barite powder, tea, and processed wood.

Tea, one of the locality’s key exports, saw growth in both quantity and quality in recent years, helping local businesses retain a stable growth.

Tuyen Quang shipped abroad 3,300 tonnes of tea this year, raking in 6.24 million USD. Major importers for the local tea are Russia, Afghanistan, Japan, the Netherlands and the US.

At that time, pulp exports reached 24,600 tonnes worth over 13 million USD, while that of barite powder hit 105,000 tonnes, earning 3.27 million USD.

Phan said the good results are attributable to the local authorities’ efforts in taking a number of measures such as investment incentives and capital support among others, facilitating local firms’ production.

Additionally, businesses enhanced investment in moderlising their production line, while proactively intensifying trade promotion activities to seek new more markets.

At present, over 30 enterprises in the locality specialise in directly producing and processing for-export goods. Their products were shipped to 50 countries and territories, including the European Union, the US, Japan, the Republic of Korea, China and ASEAN.

In the coming time, the provincial Department of Industry and Trade will continue increasing trade promotion activities to expand export markets for the locality.

Can Tho strives to lead Mekong Delta in per capita income

The Mekong Delta city of Can Tho targets a per capita income of 79.3 million VND (3,714 USD) in 2015, a year-on-year 12.9 percent increase, according to the municipal Department of Planning and Investment.

The figure is expected to be the highest among that of 13 regional provinces and cities.

Local authorities plan to mobilise 40 trillion VND (1.87 billion USD) for building infrastructural facilities in transportation, health care services and education, while increasing the industrial and trade sectors’ proportions in economy to 93.4 percent.

The move will help the province record a GDP growth rate of 12 – 12.5 percent, a firm foundation supporting the realisation of its per capita income goal.

Duong Nghia Hiep, Deputy Director of the Department of Industry and Trade, said the province will focus on developing export products such as rice, seafood, and apparel, with a view to boosting its export turnover to 1.45 – 1.6 billion USD in 2015.

Programmes helping enterprises set foot on more foreign markets, such as Denmark, Sweden, the US, the UK, Singapore, Hong Kong, Belgium, Australia and Indonesia, are to be launched.

In 2015, Can Tho intends to set up economic cooperation models, which effectively connect farmers to enterprises, with a view to raising income of rural households.

Regarding the local workforce, Nguyen Thanh Xuan, Director of the Department of Labour, Invalids and Social Affairs, said his agency targets creating 50,000 jobs in 2015 and reducing the rate of poor household by 1 percent from 2.8 percent in 2014.-

Dong Nai: Eight FDI projects’ licences revoked

Eight foreign direct investment projects capitalizing at 13 million USD in southern Dong Nai province had their investment licences revoked in 2014, given their expired licences were yet renewed.

Nine other FDI enterprises with a combined capital of 96 million USD were dissolved due to their inefficient operations, the Management Board of Dong Nai Industrial Zones has reported.

According to Mai Van Nhon, Deputy Director of the Management Board, the move, which will be taken in the following years, aims to ensure a healthy investment climate for capable investors.

In 2014, the province attracted 1.7 billion USD in FDI, doubling its yearly target. The investments came from 159 new projects and expanded ones.

Dong Nai now has 1,131 valid foreign projects with a total investment of nearly 21.49 billion USD.

It is home to 31 industrial zones covering nearly 9,560ha, with the land occupancy rate of 66.77 percent, according to the Managing Board.

The province, which ranked third in terms of the most attractive foreign investment destinations in 2014, eyes 1 billion USD in FDI in 2015.

Dong Nai, together with Binh Duong, Tay Ninh, Ba Ria-Vung Tau, Binh Phuoc, Long An and Tien Giang provinces and Ho Chi Minh City, form Vietnam’s southern key economic region.

Mekong Delta targets 11.9 billion USD from exports

The Mekong Delta region has set to rake in 11.9 billion USD from exports in 2015, said Nguyen Phong Quang, Deputy Head of the National Steering Committee for the Southwestern Region.

The figure will include 10.2 billion USD earned from rice and seafood, which shows a rise of 21 percent from 2014.

To this end, regional localities will grow high-quality rice on 80 percent of the total rice fields, or 3.3 million hectares, in a bid to harvest an output of 25 million tonnes of paddy rice.

They strive to reap 3.7 tonnes of aquatic products from the farming areas of 800,000 hectares, he said.

The committee reported that in 2014, the region’s total export value reached 11 billion USD, 0.7 billion USD more than 2013’s figure.

Rice, aquatic products and apparel were among hard currency earners of the region during the year.

Rice and aquatic products brought home 8.9 billion USD, accounting for 81 percent of the region’s total revenue.

Kien Giang targets 536 million USD worth of exports

The Mekong Delta province of Kien Giang has set to earn an export value of 526 million USD in 2015, up 5.9 percent from a year just gone.

The province expects to ship abroad agricultural products, including 700,000 tonnes of rice, for 315 million USD, and seafood for 170 million USD.

This year, it focuses on helping local exporters tackle difficulties in terms of markets, material sources, labour, capital and advanced technology.

Local authority plans to launch “Bon nha” (Four houses) programme which links businesses and farmers in Long Xuyen Quadrangle, Tay Song Hau and U Minh Thuong, which are the province’s main rice and shrimp production areas, in order to ensure stable supply for processing facilities.

The Industry and Trade Department (ITD) and relevant bodies will forecast rice output and launch the stockpile of rice harvested in the 2014 – 2015 winter-spring crop.

Firms will be supported with tax incentives and easier loan access to expand business and upgrade factories so as to increase their product quality and competitiveness.

Kien Giang will work closely with the Vietnam Chamber of Commerce and Industry to issue Certificates of Origin, save time and costs for export-import procedure clearance and train human resources based on demand of the labour market and businesses.

According to ITD Director Huynh Van Ganh, a number of major industry projects are to be operating, offering employment for local people as well as fueling export growth.

Besides, trade promotions will be held for local businesses to seek economic partnerships and new markets as well.

Cooperation programmes between the locality and Cambodia’s border provinces, Ho Chi Minh City and the Mekong Delta region will continue for higher trade growth, he added.

Export turnover of the province reached 500 million USD in 2014, fulfilling 74.1 percent of the yearly target and representing a drop of 18.3 percent from 2013.

Most dissolved businesses of small scale

The number of dissolved businesses last year dropped 3.2 percent against the previous year to 9,501, most of them were of small scale with registered capital of less than VND10 billion (US$467,000) each.

According to a report by the Business Management Department under the Ministry of Planning and Investment, last year the country saw the return of 15,419 businesses that temporarily stopped operation, up 7.1 percent over 2013.

This figure showed that the economy has recovered and created more investment and trading opportunities for those running into difficulties, said the department.

Cam Ranh airport to refund VAT to foreigners leaving Vietnam from Jan 6

Cam Ranh International Airport in the south-central province of Khanh Hoa will officially open its VAT refund booth for foreigners next week, six months after it received approval from the Prime Minister to do so.

The Khanh Hoa branch of the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) has been allowed by the Ministry of Finance to handle VAT refund receipts for foreigners at the airport, starting on January 6, according to Dinh Van Luan, deputy head of the provincial customs.

Five businesses in Khanh Hoa have been licensed to sell goods subject to the VAT refunds, including Khatoco, Le Van Co., Me Trang Coffee, Salanganes' Nest Khanh Hoa, and Viet Khanh Phu Co. Ltd., Luan said.

Foreigners began to be able to claim VAT refunds for goods they purchased in Vietnam in July 2012 during a pilot program run at Tan Son Nhat International Airport in Ho Chi Minh City and Noi Bai International Airport in Hanoi.

They are now able to receive a refund for goods worth at least VND2 million (US$94) and purchased within 30 days of their exit date.

Foreigners will receive 85 percent of the value-added tax imposed on their purchases and the remaining 15 percent will be counted as service fees for the banks tasked with refunding the visitors.

Between July 1, 2012 and February 2, 2014, 8,628 foreigners obtained VAT refunds worth VND32.9 billion ($1.54 million) for more than VND425 billion ($20 million) worth of goods they purchased in the Southeast Asian nation, according to the Vietnam Customs.

Five exit terminals were added to the refund program in a fiat signed by Prime Minister Nguyen Tan Dung in May 2014, which took effect in July the same year.

The terminals include Da Nang International Airport and Da Nang port in central Da Nang City, Cam Ranh International Airport and Nha Trang port in coastal Khanh Hoa Province, and Khanh Hoi International Seaport in Ho Chi Minh City.

“Once the VAT refund booth at Cam Ranh airport functions stably, we will move on to set up the counter at the Nha Trang port,” Luan said.

According to regulations, in order to qualify for the refund, foreigners must present receipts worth at least VND2 million (roughly $100) apiece.

The VAT is paid back in Vietnamese dong. Thus, foreigners are responsible for exchanging dong for foreign currencies.

Payments are processed immediately after travelers complete refund declarations and invoice inspections at the airport.

Foreigners are required, upon purchase, to show their passport or immigration paper and in return, the retailer will provide them with a VAT refund declaration form that they then will check and sign in.

When they arrive at the airport, they will be requested to present the document to the customs office.

At the VAT refund counter, they will be required to submit the original copy of a boarding pass for an international flight and the original copies of invoices and the VAT refund declaration form with the customs office’s “checked” seal to get the VAT returned.

According to the Ministry of Finance, foreigners and overseas Vietnamese are both eligible for VAT refunds on purchases in local accredited stores with the ‘VAT Refund for Tourist’ logo.

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