Chairman of Sacombank resigns

The board of directors of Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) has accepted the resignation of Dang Van Thanh after he was summoned by the Police Investigation Agency on November 1.

The announcement was made by Pham Huu Phu, the newly appointed chairman of Sacombank, at a press conference on Saturday.

Sacombank is presently waiting for an official announcement by the Police Investigation Agency on the summon orders.

Mr. Phu said that the resignation of Thanh was foreseen and he had been asked to step down on July 27. However the State Bank was inspecting Sacombank at that time, as a result Thanh still held his position until the inspectorate completed their work on October 5.

The board of directors of Sacombank plan to sell 15 percent of their stocks to foreign strategic partners within the next four months, he said.

Nguyen Hoang Minh, deputy director of the State Bank in HCMC, said that the State Bank is ready to assist Sacombank to ensure their liquidity. However it still held good as of November 1.

Golden sales promotion days

Customers of 25 golden places around Hanoi are enjoying 20–50 percent discounts on a variety of products and services including food, beverages, garments, and electronic appliances.   

The number of customers at supermarkets such as Big C, Fivimart, Hiway, HC, Topcare and Pico is perpetually growing, especially in more recent days. Thanks to thorough preparation, however, eager shoppers have not been forced to jostle each other to buy the products and services on sale.

Most of the products are made in Vietnam.

Some golden places like World Mobile Supermarket, Pico, and Topcare have also launched "Students' Day, Students' Prices", offering low income earners, especially students, the chance to own their favourite products.

Doan Quoc Khanh, Marketing Manager of the HC Supermarket, said the company has prepared a broad selection of high quality products at reasonable prices to attract customers. The campaign also provides a good opportunity for businesses to reaffirm their trademark and prestige.

The 2012 Sales Promotion Month, which began on October 31, always receives positive response from Hanoians. It demonstrates the City's efforts in containing inflation and stabilizing market prices.

Vientiane- Long Thanh golf project inaugurated

Phase one of the Vientiane-Long Thanh golf course project with 18 holes was inaugurated in Vientiane on November 3.
    
Invested by the Vientiane KN Group, the 36-hole golf course is part of the Vientiane-Long Thanh special economic zone covering an area of 557.74 ha with a total investment of US$1 billion.

Besides the golf course, the zone includes a five-star hotel, a school and an international hospital, a luxury resort, a trade centre, sports facilities and an urban area with over 2,000 villas.

The zone is expected to be completed in 2020, generating over 3,000 jobs for local people.

Addressing the inaugural ceremony, Lao Deputy Prime Minister Somsavad Lengsavad highly valued the Vientiane KN Group’s effort to complete the project on schedule, affirming this is a significant event in promoting bilateral cooperation and investment.

He said he hopes the group will accelerate the construction of the Vientiane-Long Thanh special economic zone, the first of its kind invested by Vietnam in Laos , and turn it into a model special economic zone.

Laos took this opportunity to present Le Van Kiem, chairman of the Board of Directors of the Long Thanh-Vientiane special economic zone, with the Development Order.

Bangladesh keen to raise cooperation with Vietnam

Bangladeshi Prime Minister Sheikh Hasina has affirmed her country wants to bring economic and trade cooperation between with Vietnam to a higher level.    

Speaking at the Vietnam-Bangladesh business forum in Hanoi on November 3, the Bangladeshi PM stated that Bangladesh has created incentives to attract domestic and foreign investment and ensure legal protection for commitments to capital investment and profit sharing. She said the country has also implemented preferential tax policies for investors to operate their business for five to seven years.

Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said that over the years, two-way trade between Vietnam and Bangladesh has doubled year-on-year, reaching US$500 million in 2011 and that figure is expected to increase to US$1 billion in the next two or three years.

Loc said he hopes PM Hasina’s visit will promote economic, trade and investment cooperation between the two nations in their fields of strength, such as consumer goods, agricultural products, food, infrastructure construction, shipbuilding, tourism and information technology.

Vietnamese Deputy Minister of Agriculture and Rural Development Cao Duc Phat said that bilateral trade is still far from matching the potential of both countries, recording only US$290 million in the first nine months of this year.

Vietnam and Bangladesh are two markets with great purchasing power, therefore, their governments should implement measures to encourage cooperation, particularly in the industrial and agricultural sectors, Phat said.

VCCI Chairman Loc also announced the decision to establish a Vietnam-Bangladesh Business Council and appoint Nguyen Tien Dat, the director of the Vissai Export-Import Company (part of the Hoa Phat Group), as its chairman.

A delegation from Bangladesh representing more than 20 major companies and groups operating in pharmaceuticals, garments and textiles, construction, transport, agriculture and trade also joined the forum aiming to seek new business opportunities.

Japanese household appliance plant operational in Dong Nai

The Japanese Tiger Vietnam Company put its first manufacturing plant for household electrical appliances, invested at US$12 million, into operation at the Amata Industrial Zone in Dong Nai province on November 2.    

Established for 90 years, Tiger is a leading Japanese group that sells its products to 60 countries around the world, primarily in Asia and North America.

A representative of the group said it considers Vietnam a strategic future market for both production and sales in the region.

Japan is one of countries that  has invested the most in Dong Nai with 141 projects worth around US$2.8 billion operating in many fields, but mainly in high-tech and environmentally friendly sectors.

Russia-Vietnam trade value surges

Two-way trade turnover between Russia and Vietnam has increased sharply, according to the Russian Ministry of Economic Development.  

In the first half of this year, trade hit more than US$2.5 billion, a 49.7 percent rise over the same period last year. Of that figure, Russia exported over US$1 billion, up 63.8 percent, and imported more than US$1.4 billion, an increase of 40.6 percent.

Russia's main exports to Vietnam include machinery and equipment (69 percent of the total export value), metal products (15.4 percent), chemical products (3.8 percent), and mineral water (2.4 percent), while it imports machinery and equipment (58.1 percent), garments and footwear (20.9 percent), agricultural products (13.9 percent) and chemicals (2.6 percent) from Vietnam.

Last year, two-way trade exchange reached US$3.061 billion, a year-on-year increase of 25.2 percent, with Russia's exports accounting for US$1.388 billion (up 0.3 percent) and its imports from Vietnam hitting US$1.722 billion (up 55 percent).

Kazakh airline launches first route to HCM City

The national airlines of Kazakhstan, Air Astana, will launch the first route linking Ho Chi Minh City and the biggest Kazak city of Almaty on January 2, 2013.     

There will be two flights per week on the route, one every Wednesday and Friday.

A direct flight will be offered from Ho Chi Minh City to Almaty, while the Almaty to HCM City flight will transit in Bangkok.

Coffee exports reach US$3.4 bil

Coffee exports of the 2011-2012 crop have reached almost 1.6 million tonnes worth nearly US$3.4 billion, up 23 percent in volume and 24 percent in value, according to the Vietnam Coffee-Cocoa Association (Vicofa).

Vicofa said that the average export price stood at US$2,000 per tonne, actually much lower than the 2011’s figure, but only $30-40 per tonne lower than the world’s price.

The Vietnamese coffee has been exported to 80 countries and territories around the world. Its largest importers include Germany, the US, Italy, Spain, and Japan.

Vietnam’s coffee output has amounted to 1.5 million tonnes in the 2011-2012 crop, surpassing the set target of 1.2 million tonnes.

Vicofa forecasts that the total coffee output for the 2012-2013 crop will fall 15-20 percent to 1.2-1.3 million tonnes as between 50,000-60,000 hectares of coffee trees of above 25 years old need to be re-greened.

More Thai businesses eye Vietnam market

Thailand ranks 10th among foreign investors in Vietnam, involved in 257 projects valued at a total of approximately US$6.7 billion.    

The figure was released at a Vietnam-Thailand trade exchange held in Ho Chi Minh City on November 2.

Nguyen The Hung, Vice Director of the Vietnam Chamber of Commerce and Industry’s (VCCI) HCM City branch, said trade relations between Vietnam and Thailand have developed strongly. He said the two business communities currently enjoy the best possible conditions to meet, engage, and cooperate with each other in many fields, especially investment and trade.

Vietnamese businesses are seeking our investment opportunities and expanding trade activities in Thailand, said Hung adding that Thai businesses also consider Vietnam a stable market with great potential.

Isares Rattanadilok Na Phuket, Deputy Secretary-General of the Federation of Thai Industries (FTI), said Thai businesses should take advantage of Vietnam’s great potential in human resources, the rapid and constant development of public services, a huge market of 90 million consumers and steady economic growth.

Na Phuket pointed out the areas that Thai businesses can promote and establish partnerships, including food, beverage, garments, pharmaceuticals, seafood processing, and consumer goods.

Two-way trade turnover reached US$8 billion in 2011, up 20.5 percent over 2010. It hit US$3.8 billion in the first five months of this year.

Vietnam primarily exports steel, agricultural products, and seafood products to Thailand, and imports petroleum, material plastics, technical equipment, and motorbike spare parts.

SuperStar Aquarius brings 2,150 foreigners to Vietnam

The Saigontourist Travel Service Company welcomed 2,150 foreign passengers and crew members on board the cruise ship SuperStar Aquarius that docked at Halong harbour on November 3.    

This is the first cruise ship to arrive in Vietnam under the framework of a new cooperation programme between Saigontourist and Malaysia’s Star Cruises, the third largest cruise operator in the world.

According to the agreement, Saigontourist will receive nearly 100 Star Cruises ships in Vietnam between now and April 2013.

The ships are expected to bring more than 110,000 foreign passengers and crew members to Vietnam from China, Hong Kong, Japan and the Republic of Korea.

From November 2011 to March 2012, Saigontourist welcomed 80 ships belonging to the Star Cruises company carrying 190,000 foreign passengers and crew members for tours around Halong, Danang, Hoi An and Hue.

More than 65,000 workers sent abroad

More than 65,000 Vietnamese workers have been sent to work abroad in the past 10 months.   

The Department for Overseas Labour Management under the Ministry of Labour, Invalids and Social Affairs reported that more than 24,500 Vietnamese labourers are working in Taiwan (China) while nearly 9,000 others are employed in the Republic of Korea.

The total number of guest workers sent abroad in the first 10 months of 2012 is 87 percent of the number in the same period last year, and 72.4 percent of the targeted total for this year.

Vietnam to boost trade, investment ties with Laos

Vietnam will tighten its ties of trade and investment cooperation with Laos by through business deals by economic groups.  

Prime Minister Nguyen Tan Dung made the statement at a meeting with Lao State President Choummaly Sayasone in Vientiane on November 4.

The two leaders expressed their delight at the growing ties between the two nations over the past 50 years.

They spoke highly of the successful organization of events to mark the Vietnam-Laos Friendship Year.

He also congratulated Laos on becoming a member of the World Trade Organisation, which he said marks an important step in the way to integrating into the international community.

Mr. Dung thanked the country for its active preparations for ASEM 9 and other Asia-Europe events this year.

The Lao President said his country will create favourable conditions for implementation of projects signed between Vietnam and Laos with greater efficiency.

The two sides agreed to bring two-way trade turnover to a level of US$1 billion this year and US$2 billion in 2015.

Pham Thi Huan receives ‘World of Difference 100 Award’

Pham Thi Huan, director of the Ba Huan Company in Vietnam has been honored with the ‘World of Difference 100 Award’ for 2012 by the International Alliance for Women (TIAW).

The awards ceremony was hosted in the US on October 19 to honor 100 women entrepreneurs from 50 countries in the world.

This is the first time TIAW has selected a Vietnamese women entrepreneur for the award. An entrepreneur receives the award only once in a lifetime.

Pham Thi Huan has been honored for running an effective and well-managed business in the production and distribution of fresh eggs.  She has created employment for hundreds of women and has contributed a great deal towards developing the community after overcoming insurmountable difficulties to establish the business.

Ba Huan has also been the first company in Vietnam to invest in an advanced technology to produce fresh eggs to ensure food safety, sponsor farmers to develop breeding techniques, help in breeding hybrid chickens and in distribution of their products.

Farmers get help to grow organic crops

Authorities in Tien Giang Province's Chau Thanh District have been implementing several measures to help farmers cultivate "clean" vegetables with proper use of chemical pesticides and fertilisers.

The district, which is the Cuu Long (Mekong) Delta province's largest vegetable cultivation area, now grows various kinds of vegetables on 1,600ha, supplying about 150,000 tonnes of vegetables a year for markets in the South.

Over the past several years, the district's 13 communes have co-operated with relevant agencies to impart knowledge of cultivating clean vegetables to local farmers.

They have organised tours for farmers to clean vegetable cultivation models in Tien Giang and other provinces.

In Than Cuu Nghia Commune, agricultural officials have trained 184 households in growing clean vegetables on 71ha since last year. The commune now has 220ha dedicated to vegetable cultivation.

Pham Van Luong, deputy head of the Than Cuu Nghia People's Committee, said: "Vegetables are the fastest way to help farmers here escape poverty."

The commune's vegetable cultivation area would continue to increase as farmers had seen the economic effectiveness, he said.

In Tam Hiep Commune, the local People's Committee has co-operated with the Tien Giang Agriculture Extension Centre to train farmers in adopting Vietnamese Good Agriculture (VietGap) Practices, benefiting 150 households.

Tam Hiep has also sent local farmers to visit farms growing clean vegetables in the southern province of Ba Ria- Vung Tau.

It has zoned a 50ha site for 222 households in hamlets 1, 2, 3, 5 and 6 to grow clean vegetables.

Huynh Huu Hoa, deputy head of the Chau Thanh District Agriculture and Rural Bureau, said the district's communes had implemented well the zoning plan for vegetable cultivation, disseminating needed information and setting up farmer groups.

The district People's Committee last year set a target of expanding its vegetable cultivation area to 1,800ha by 2015, with an average production value of VND270 million( US$12,960) a year per ha.

Of this figure, the area under clean vegetable cultivation will account for 1,000ha.

The district's farmers now grow pennywort, root and leafy vegetables as well as spices.

Itochu looks to run from ethanol project

The Japanese investor in Binh Phuoc province-based $80 million ethanol factory is seeking buyers of its 49 per cent stake.

PetroVietnam chairman Phung Dinh Thuc explained that the absence of regulations on using ethanol gasoline and related products in Vietnam had hindered the factory from selling its products on the domestic market, resulting in Itochu’s divestment decision.

Itochu’s representative office in Hanoi did not respond to VIR’s enquiry by the end of last week.
In July this year, Itochu already complained to the Minister of Planning and Investment about market difficulties facing the Binh Phuoc factory.

Starting production early this year after 30 months of construction, the factory is invested by Orient Bio Fuels Company, a joint venture between Itochu and two Vietnamese partners, with PV Oil which is wholly-owned by PetroVietnam holding a 29 per cent stake and Licogi 16 holding 22 per cent.

The factory is designed to use cassava to produce around 100,000 kilolitres of ethanol per year.
Itochu has been the only foreign investor in an ethanol factory in Vietnam so far. It has built similar factories in Brazil, Thailand and the Philippines.

Meanwhile, PetroVietnam has invested in three ethanol factories with a total capacity of 300,000 cubic metres per year.

The Quang Ngai and Binh Phuoc factories started production at the beginning of 2012 but have been operating unstably due to up-and-down sales.

Specifically, PV Oil sold only 750 cubic metres of ethanol in Vietnam in the first nine months of this year.

PV Oil deputy general director Le Xuan Trinh said after two years selling ethanol gasoline in Vietnam, the company could only market the product via 136 pumping stations. The country has about 13,000 stations available.

Vietnam has planned to build 13 ethanol factories, with six being operational or under construction.

HCM City tops Global Shopper Index for affordability

HCM City ranked first in the affordability category of the Globe Shopper Index, published by the Swiss shopping tourism company Global Blue.

Viet Nam's largest city scored particularly well for hotels, restaurants and bars. It also scored above average for the cost of global shoppers' favourite items, such as clothing, watches and electrical goods.

Global Blue's expanded Globe Shopper Index added 25 Asia-Pacific cities to the existing 33 European cities, ranking them on the experience they provide to international travel shoppers.

The rankings are based on five categories covering shops, affordability, convenience, hotels and transport and culture and climate.

Global Blue developed the Globe Shopper Index in partnership with the Economist Intelligence Unit as an essential planning tool for all international travel shoppers searching for their next shopping destination in Europe and Asia-Pacific.

Overall, HCM City came in 19th in the Globe Shopper Index, a few points behind Osaka, Japan and ahead of Busan, Korea.

Hong Kong topped the Index as the most attractive city for international travel shoppers in Asia-Pacific.

HCM City fell in the rankings because of the limited number of cultural and sporting events in the city.

A lack of large malls means that only a limited range of international brands are available to global shoppers in the city.

Global Blue is the expert on foreign travellers' shopping and spending and makes retail transactions between merchants and their foreign customers easier and more rewarding for everyone.

The Globe Shopper City Index – Asia-Pacific measures the attractiveness of 25 major Asia-Pacific cities for international travel shopping.

Foreign businesses seek opportunities in HCM City

Business delegations from Hungary and the Republic of Korea are seeking cooperation opportunities with local partners in Ho Chi Minh City.

Hungarian businesses operating in environmental protection, water treatment, information technology, agriculture, education and health, joined a Hungary-Vietnam business conference, held on November 1, aimed at fostering bilateral economic ties.

The conference, also attended by Szijjarto Peter, Secretary of State for Foreign Affairs and External Economic Relations and head of the Hungary sub-committee of the Vietnam-Hungary Joint Committee for Economic Cooperation, offered a chance for the two countries’ businesses to share their concerns about commercial activities as well as discuss current trade trends.

Also on the day, the nation’s southern economic hub welcomed businesses from the Republic of Korea ’s Busan city, which involve in food and beverage, medical equipment, and computers parts.

A representative from the delegation said that they want to meet partners operating in the same fields and are ready to franchise their products to Vietnamese partners.

Puma Energy completes acquisition in Vietnam

Puma Energy, a subsidiary of one of the world’s largest independent commodity traders Trafigura Beheer, on November 1 announced it had completed the acquisition of Chevron Kuo Pte Ltd, a Singapore entity which owns 70 per cent of Chevron Bitumen Vietnam Limited “CBVL”.

The new company will be called Puma Energy Bitumen Vietnam and within three months the company’s assets will be rebranded Puma Energy.

According to Pierre Eladari, Puma Energy's chief executive officer, Puma Energy was quickly becoming a global marketer of bitumen.

“Our investment in logistics operations and in our bitumen terminals in Spain, Africa, Central America and now Vietnam will help us to deliver ambitious growth in sales volumes,” Eladari said.

Puma Energy Bitumen Vietnam imports, stores and distributes asphalt for road building and infrastructure developments in Vietnam.

The company's assets include a Haiphong terminal which has wharf facilities with a state-of-the-art bitumen storage terminal with a capacity of 5,000 metric tons and the management of a bitumen distribution business around Hanoi and Ho Chi Minh City. The 35 members of staff have transitioned to the new business.

Puma Energy is a global integrated midstream and downstream oil company active in over 30 countries.

Formed in 1997 in Central America, Puma Energy has since expanded its activities worldwide, achieving rapid growth, diversification and product line development.

The group directly manages over 4,000 employees and has regional hubs in Singapore, Johannesburg (South Africa), San Juan (Puerto Rico) and Geneva (Switzerland).

Puma Energy’s core activities in the midstream sector include the supply, storage and transportation of petroleum products.

Puma Energy’s activities are underpinned by investment in infrastructure which optimises supply chain systems, capturing value as both asset owner and marketer of product.

Puma Energy’s downstream activities include the distribution, retail sales and wholesale of the full range of refined products, with additional product offerings in the lubricants, bitumen, LPG and marine bunkering sectors.

Puma currently has a global network of over 1,300 retail service stations. Puma Energy also provides a robust platform for independent entrepreneurs to develop their businesses, by providing a viable alternative to traditional market supply sources.

Building bridges to Singapore

Thirty-two Singaporean companies on November 1 and 2 gathered at Singapore Showcase held in Hanoi, expressing their upbeat about investment opportunities in Vietnam.

The two-day event attracted many people to learn about Singaporean companies’ business operations in Vietnam and create a useful connection between Singaporean and Vietnamese companies.

“This is a good opportunity for us to introduce ourselves in Vietnam market, we are looking for partner to expand business here,” said William Ang, director of Green Lotus Pte, the developer of $20 million Van Loi resort in Do Son beach, Haiphong City.

This is the first this such event organised in Vietnam and the response from business community was positive. To further enhance awareness of Singapore business in this country, Singapore Business Association in Vietnam – the exhibition organiser – also plans to hold similar events in the future.

According to Singapore Business Association in Vietnam, the showcase also aims to further cement the close relationship amongst Singapore companies here.

Statistics from Foreign Investment Agency show that Singaporean companies have invested in 1,080 projects in Vietnam, becoming the fourth largest investing country in Vietnam. Since January 2012 to date, Singaporean companies registered to invest into 72 projects, capitalised at $444 million.

Ricky Tan, chairman of KinderWorld – a property developer and education firm – said Vietnam was among attractive places in ASEAN where Singapore could expand business.

“When I came here first time, the traffic was terrible, transportation was underdeveloped. My impression was not good about Vietnam, but now Hanoi is place generating huge profit for our company,” said Tan.

Tan said KinderWorld was developing three new hotels and university complex projects in Danang, Quang Nam and Ba Ria-Vung Tau, that proves for its long-term commitment in Vietnam.

Goods fail to access major distribution

Domestic enterprises are continuing to face difficulties accessing modern distribution systems for their products that will ensure they reach the shelves of the nation's supermarkets and shopping malls, says the deputy director of the Department of Ha Noi Industry and Trade, Nguyen Van Dong.

However, Dong acknowledged, many of these enterprises were unable to meet distributor standards for the design and quality of packaging and the stability of production and supply.

The profit margins for many Vietnamese products were also so low that few companies had the capital to afford the high fees charged by distributors, many of which go toward advertising and other wholesale and retail promotion efforts, he said.

Major distribution systems were also focused largely on modern retail centres located mostly in inner-city districts, while there was little distribution effort targeted at rural areas, he said.

Rural areas had a high demand for Vietnamese goods so local products needed to be more actively promoted to rural consumers, Dong said, urging the State to create more favourable conditions for the development of a wide distribution system for Vietnamese goods.

He suggested market days to promote domestic products that would better enable enterprises to conduct market research and then co-operate with local authorities to improve distribution systems.

After three years of an ongoing public campaign to promote the use of Vietnamese goods, 83.6 per cent of 2,000 consumers surveyed voiced confidence in Vietnamese goods and 73 per cent had switched to buying Vietnamese goods, according to a report from the campaign's steering committee.

A survey conducted by the US's Grey Group found that, before the campaign, 77 per cent of Vietnamese people used foreign products. In its first year alone, the campaign succeeded in raising awareness of domestic brand names like Garment 10, Viet Tien, Vinamilk, Kinh Do and Trang An and increased their footprint at major retail chains like Big C, Intimex, Hapro, Co.opmart and Fivimart.

However, surveys found that consumer psychology still favoured foreign products, viewing them as higher quality than comparable Vietnamese goods.

Viet Nam Standard and Customer Protection Association general secretary Nguyen Manh Hung said that many low-quality imported goods were also sold under Vietnamese trademarks to confuse consumers and cause a loss of confidence and undercutting the reputation of Vietnamese trademarks.

Hung said the State needed to take greater control of counterfeit and low quality products to protect the interests of customers and enterprises.

Vietnam attends regional conference of German businesses

Minister of Industry and Trade Vu Huy Hoang on November 2 attended the opening of the 13 th Asia-Pacific Conference of German Businesses (APK-13) in New Delhi , India

Addressing the event, German Minister of Economy and Technology Philipp Roesler described the Asia-Pacific as a key region in the world, saying that the conference will give German businesses an opportunity to broaden linkages and share experience with enterprises in the region.

He said he will meet representatives of businesses and politicians on the region in the conference’s sideline to strengthen bilateral ties between Germany and regional countries.

Germany’s annual export revenue to the Asia-Pacific increased by an average nine percent in 2001-2011 period, according to the German Embassy in India.

Organised for the first time in 1986 by the German Chamber of Commerce abroad, the Asia-Pacific Committee of German Businesses and the Germany’s Federal Ministry of Economy and Technology, the biennial APK conference aims to strengthen connectivity between German businesses and those in the Asia-Pacific region.

Petrol, LPG dealers fined for fraud

Inspectors from the Ministry of Science and Technology have fined 678 petrol and liquidified petroleum gas (LPG) dealers a total of over VND5.3 billion ($254,000) after three months of investigation into fraud allegations.

Violations included fraudulent metering of weights and measures, selling substandard products, and trademark violations, including companies making unauthorised and misleading use of the Petrolimex brand designation.

These were announced at a conference on November 1 reviewing the results of inspections of over 5,200 petrol and LPG dealers nationwide.

The number of distributors found in violation therefore accounted for 13 per cent of the total, including 508 petrol dealers and 107 LPG distributors.

The inspection team also revoked the licences of 56 gas dealers and 32 petrol stations, the ministry said.

Nation urged to cut down on red tape

(VNS) Viet Nam observers are waiting to see what concrete steps the Government will take to improve the efficiency of the economy, according to the HSBC's latest Viet Nam at a Glance report.

It says that the observers are most interested in seeing "how the government will reduce red tape" and improve the business environment to support "Viet Nam's highly productive and efficient farmers, manufacturers and entrepreneurs as well as keen foreign investors."

They also want to see the Government improve coordination between the local and central government as well as different ministries to effectively implement regulations as well as deliver development goals, the report says.

Furthermore, Viet Nam observers are keen on seeing the nation improve its processing capability to increase the value of its exports and reduce import costs; and increase agriculture productivity to meet rising demand.

The report says Viet Nam's economy can be considered to be stabilising, but is still dragged down by several factors.

The HSBC's Purchasing Managers' Index (PMI), comprising new order, output, employment, suppliers' delivery time and stock of items purchased sub-indexes, deteriorated slightly from September's 49.2 to 48.7 last month, which marks a ninth month of contraction for 2012.

While the drag from the domestic side is stabilising, Viet Nam's manufacturing sector is being hit by weak external demand, especially from the Eurozone, Japan and the US. The latest data from the Eurozone continues to point to a recession into the fourth quarter, which means that for the rest for year, exports to the region should continue to be sluggish, the report says.

The US election as well as "anticipation of a fiscal cliff has left consumers and corporates holding back investment and consumption," hurting demand for Vietnamese goods such as garments and footwear as well as electronics.

The report also noted that a gradual recovery in China would counterbalance some of the slowdown in western demand, as China became Viet Nam's second largest export destination in 2011.

"What's most positive about October's breakdown is the rise in employment, although this primarily reflects already planned expansion rather than an overall improvement of the economy. This means that despite sluggish economic growth and a challenging external environment, manufacturers in Viet Nam see growth opportunities and are carrying out plans to expand in preparation for when growth returns," the report says.

It says there has been a deceleration of import demand in both consumption and for production goods. For example, motorbike and car imports contracted, reflecting tightening consumer expenditure. Even with a year-to-date increase in oil prices globally, the value of petroleum imports has declined this year.

"In fact, for all of the top six import items, only electronics saw an expansion this year, reflecting a change in export structure," the report says.

It sees the garment and electronics sectors as major export earners in the future, gradually replacing raw material exports.

The report agrees with Viet Nam's efforts to attract high-tech investment in Viet Nam as a way "to absorb excess labour as well as get access to international good practices and technology."

However, a more concerted effort is needed to develop the capability to supply inputs as well as build up local capacity, it says, warning that without this, a waning of Viet Nam's wage competitiveness could result in a very harmful reversal of investment flows.

However, year-to-date exports to China have exceeded last year's total. While China's domestic economy has slowed, Viet Nam's exports to the country have increased.

This is due to the fact that the country is increasingly attracting foreign investment as China's cost of production rises, which ultimately means that some goods produced in Viet Nam will get exported to China as the Asian giant is well-integrated into the global electronic supply chain.

The report says this is an opportunity for Viet Nam to implement policies to acquire technological knowledge so that its future competitiveness will be beyond cheap wages. For example, it can create inputs for China's supply chain as well as process its natural resources such as crude and coffee to make Vietnamese brands internationally competitive.

New report on jobs, hiring

There is a strong demand for qualified accountants in Viet Nam despite the economic slowdown.

A report prepared by HR firm Robert Walters says that as companies start focusing on .establishing long-term stability of their businesses in Viet Nam, there will be an increasing demand for "tax, compliance, internal auditing and legal professionals who can help keep companies in line with regulations while driving down operating costs."

It has noted strong demand for accounting professionals with ACCA or CPA qualifications across all functions and levels.

"Professionals with strong business acumen and experience working with cross-functional teams were in high demand in the first half of 2012, and this trend is expected to continue," the report says.

It says front and middle office hiring in the first half of 2012 was "extremely cautious," with some demand for risk professionals and relationship managers.

There was "slow, but steady" demand for retail banking professionals in the second quarter of 2012 as the sector showed signs of positive growth.

With the State Bank of Viet Nam looking to tighten control of credit risks, "banks are expected to actively hire risk control experts to strengthen this function," the report says. It also forecasts a continued demand for relationship management experts and "positive hiring" in the direct sales, consumer sales and card products departments.

Overall, the banking and financial services sector is set for "cautious but optimistic growth," in the coming months, the report says.

It says there was active hiring of HR staff in the first half of the year, with professionals across diverse backgrounds being actively sought after.

HR generalists were in high demand across the FMCG (fast moving consumer goods), pharmaceutical, automotive and technology sectors and the trend is set to continue.

The report says employee retention remains a key concern for many firms, with employers willing to offer higher remuneration packages for HR talent with strong communication and interpersonal skills.

Stock market needs support

Viet Nam should bring back investors to the stock market by removing the individual income tax imposed on securities investments (usually collected by brokerages when shares are sold) and reducing corporate income tax on securities companies so that they can lower trading fees for investors, an industry insider says.

Bui Nguyen Hoan, HCM City chief representtive of the Viet Nam Associatio of Securities Business (VASB, says a reduction in interest rates and loosening of the quota on loans for securities investment will also help the market revive.

Securities companies should be divided into two types: a brokerage that will neither invest in securities itself nor offer underwriting services; and securities trading firms that will not provide brokering services. This, Hoan feels, will prevent securities companies from abusing investors' capital.

Brokerages, for their part, must improve the quality of their staff, both in terms of competence and ethics, to win investors' trust.

Cash accounts of investors should be opened on their behalf at a commercial bank selected by the investors themselves, Hoan suggests.

He says a tighter management and inspection regime in corporate governance, information disclosure and trading regulations that increae transparency are also needed.

Authorities should issue regulations and allow the trading of derivatives, beginning with futures contracts and options for shares of high liquidity. Later on, these futures and option contracts can be extended to foreign currency, gold, coffee and oil.

Hoan also feels there should be an institution to manage the financial market system.

Although organisations like banks, insurance companies, securities firms and investment firms "have mutual relations," they are independent in their professional activities; therefore the institution would cover the whole system and avoid overlapping or contradictions in financial policies, he explains. —VNS

The stock market Viet Nam still suffers from a lack of fairness and transparency in the system, he says.

The absence of major State-owned groups is another factor discouraging growth of the stock market in Viet Nam, which is yet to match the potential of a country with a population of almost 90 million population, according to Hoan.

SAP introduces real-time solution

SAP (Systems, Applications and Products in Data Processing), a global leader in enterprise application software, organised its first Technology Summit in HCM City earlier this week to introduce its in-memory appliance (SAP HANA) software solution to cope with big data and real-time data management.

The appliance will help customers process large quantities of data in real-time from virtually any source of information, allowing enterprises to make intelligent, data-based decisions, the company said.

Information Safety Day nears

The fifth Viet Nam Information Safety Day will be held in HCM City from November 15 – 16 and in Ha Noi a week later.

This year, the focus will be on "Constructing a safe information infrastructure for national digital sovereignty."

State information management officials and experts will exchange experiences, discuss the latest safety solutions for information protection as well as strategic trends in information safety.

IT expo promotes domestic products

Leading Vietnamese information and communications technology companies will participate in the second Viet Nam ICT Brand expo held in HCM City from November 15 – 17.

Around 70 kiosks will display Vietnamese ICT achievements and products. Four conferences and workshops on various ICT developments will be held during the expo, which aims to promote consumption for made-in-Viet Nam products.

Metro launches health initiative

METRO Cash&Carry Viet Nam has launched an initiative to help professionals improve community health. The 20-month project, "HEALTHY", a Public Private Partnership with the German Investment and Development Agency (DEG), will focus on improving safety and hygiene conditions and promoting the concept of healthy business, healthy life.

"The lack of awareness of good practices is one of the reasons that poor hygiene practices are so rampant in Viet Nam as compared to other countries," said Ante Franicevic, Director of Finance, Administration and Supply Chain Management, METRO Cash&Carry Viet Nam.

The project is aimed at hotels, restaurants, the catering industry, and professional traders as well as service companies and offices. It will also benefit suppliers like fruit, vegetable, and fish farmers and potential employees and students.-

Japan appliance maker opens plant

The Japanese-invested company Tiger Viet Nam Co. Ltd, inaugurated its first home electric appliance plant in Viet Nam's southern province of Dong Nai last Friday.

The US$12 million plant, located at Amata Industrial Park, will produce Thermoses and rice cookers, among other products.

A Tiger representative said the decision to build a plant in Viet Nam shows that Tiger sees Viet Nam as a strategic market for regional production and sales.

Japan is one of the countries with the largest number of investment projects in Dong Nai, with 141 projects worth $2.8 billion.

India wants to sign investment agreement with VN

Indian Minister of Commerce and Industry Anand Sharma said his country wants to sign an investment and service agreement with Viet Nam early next year.

He made the statement in New Delhi on November 1, when meeting with Vietnamese Minister of Industry and Trade Vu Huy Hoang on the sidelines an international conference in the Indian city from November 2 to 3.

During the meeting, the two ministers discussed measures to boost the bilateral trade and investment.

The Indian minister said Indian and Vietnamese airlines are interested in opening direct flights between the two countries. Indian banks want to open branches in Viet Nam to facilitate the bilateral investment and trade ties.

Mr. Sharma said he believes that two-way trade between India and Viet Nam, which was nearly US$ 3.9 billion in the first 9 months of this year, will surge to US$ 7 billion in 2015. The trade rose to US$ 5 billion in 2011 from nearly US$ 3.5 billion in 2010.

India plans to hold the India Show in Viet Nam in the coming time, with the participation of over 100 Indian firms, the Indian minister said.