Environmental management of nuclear power plant

A conference was held in the south central province of Ninh Thuan on July 1 to discuss environmental management before the construction of a nuclear power plant starts there.

The four-day event will focus on three main issues, including the assessment of environmental impact and environmental management, radioactivity monitoring and safety.

According to experts from the Japan Electric Power Information Centre (JEPIC), radioactive and non-radioactive waste generated in the process of building and operating the nuclear power plant needs to be strictly controlled in order to protect local people from the detrimental impact of radiation.

They suggested developing a report that fully evaluates the environmental effects and includes a number of solutions to protect the environment.

The event was jointly organised by the Ninh Thuan Nuclear Power Plant project management board and the JEPIC under the Japan International Cooperation Centre (JICC).

Vietnam, EU begins new FTA round

Vietnam and the European Union kick-started the fourth round of free trade agreement negotiations in Brussels on July 2, hoping to form a cornerstone of a complete pact.

Vietnam and the EU have agreed to exert a great effort to end bilateral negotiations in late 2014.

To this end, both sides have set a working agenda for negotiations, and they expect to go into substantive talks during the four-day round in Brussels this week, said Luong Hoang Thai, a senior Vietnamese trade official.

They worked on the major contents of the agreement and clarified their interests in the previous three rounds. They exchanged several key offers, including one on opening up the markets for their goods.

The fourth round will focus on issues of great importance to both sides, with special attention given to goods, services, investment, government procurement, and protection of intellectual property rights, as well as general provisions on trade in goods.

They will now examine ways of opening up their markets after the agreement is penned, Thai said.

He warned of the complex negotiation process due to the EU’s tough requirements, but hoped that both sides would overcome obstacles and complete the talks in late 2014 as scheduled.  

Vietnam and the EU announced the start of bilateral FTA negotiations in Brussels in June 2012.

Once the agreement is in effect, import-export tariffs on agricultural products, food, footwear, garments and other products will be slashed to zero.

The agreement is expected to boost Vietnam-EU trade ties and attract more EU investment into Vietnam.

In 2011, the EU ranked fourth among Vietnam’s largest foreign direct investors, committing US$1.77 billion in total.

Lam Dong Province to construct Dau Giay-Lien Khuong Highway

The Ministry of Transport and the People’s Committee of Lam Dong Province will invest in the construction of the Dau Giay-Lien Khuong Highway in the near future.

The work is expected to kick off before 2015. The construction is an extension of the 209km Dau Giay-Da Lat expressway project.

Additionally, a 19km expressway linking Lien Khuong in Lam Dong Province with Prenn Pass in Dalat City has been put into operation.

The 84km long railway line from Thap Cham (Cham Tower) in Phan Rang Town in Ninh Thuan Province to Da Lat City in Lam Dong will be restored.

The restoration of the Thap Cham-Da Lat train route was approved by the Prime Minister in 2007.

The first 38 kilometers of Thap Cham-Da Lat train route from Thap Cham to Xom Gon was built in 1908 and the first train came into operation in 1916. Then, the railway line continued to be prolonged to Krong Pha at the foot of Ngoan Muc mountain pass in the outskirts of Da Lat by 1917 and to the City area in 1922.

Da Lat railway station was built in 1932 and put into use in 1936. There were two trains between Da Lat-Nha Trang and Da Lat-Saigon in a day.

But this line was destroyed in the war and abandoned in the late 1960s. Seven kilometers of the track between Da Lat and Trai Mat has been reconstructed and operated for tourism since 1997. Currently, the station is one of the most attractive tourist destinations in Da Lat.

The Ministry of Culture and Information certified the Da Lat Railway Station as a national historical and cultural site in 2001. This was once considered the nicest ancient railway station in all Indochina.

The total capital for development of this project will amount to VND58,175 billion.

Farm exports decrease

Vietnam’s farm exports in the past six months fell by 7% to US$9.72 billion.

According to the Ministry of Industry and Trade (MoIT), export earnings from agro-fishery products in June alone dropped by 3.2% to US$1.74 billion compared to the same month of last year.

In the first half of this year, coffee exports could only earn US$620 million, cassava and rice earned US$176 and 74 million, respectively.

Of eight key export items, two showed an increase in both volume and value, such as fruit and vegetable (up 33.5%), and cashew nut (up 23%).

The MoIT attributed the decreasing export turnover to the low purchasing power on the global market.

US fund to invest more in Masan subsidiary

Private equity group Masan (MSN) announced on July 2 that US investment fund TPG Growth had entered into definitive agreements to acquire a 49 percent stake in its Masan Agriculture arm.

TPG Growth will pay about US$50 million to acquire the shares from Masan Consumer. This investment follows TPG Growth’s initial investment in Masan Group in 2009 and is the fund’s third investment in Vietnam.

“Our investment in Masan Agriculture is a testament to our belief in the company’s management team, our partnership with Masan Group and in the agriculture potential of Vietnam”, said TPG Growth managing partner William McGlashan.

Meanwhile, Masan Group chief executive Madhur Maini commented that the partnership with TPG provides the group with necessary expertise and capital to invest in the agriculture sector.

Masan Agriculture currently holds a 40 percent stake in Vietnamese French Cattle Feed, or Proconco, whose Con Co animal feed brand is popular among Vietnamese farmers.

Masan Group plans to transform Masan Agriculture into a subsidiary of the soon-to-be-created Masan Consumer Ventures, wholly owned by the group.

The transaction is subject to regulatory approval and other customary closing conditions and is expected to close by the end of this month.

International seminar on super fruits held

An international seminar was held in Ho Chi Minh City on July 1 to adopt a final definition for super fruits in the world, especially those from tropical regions.

A European definition states that super fruits are those which have a high nutritional value, such as apples, grapes and cherries.

Experts from the Food and Agriculture Organisation, the International Tropical Fruit Network and the Ministry of Agriculture and Rural Development said demand for the fruit is growing across the world.

They said tropical fruits, especially mango, grapefruit, papaya and Gac fruit in Asia are not popular although they have a high nutritional value and are even able to cure diseases. There has not yet been any scientific research proving their nutritional value.

The gathering is also a chance for Vietnam to popularise its special fruits as well as expanding markets for fruit exporters.

Vietnam sets a target of gaining US$1.2 billion from fruit exports to the US by 2020 and expanding its shipment to Japan, the Republic of Korea and European nations.

Machinery exhibition attracts 340 businesses

Over 340 businesses are showcasing their products and services at the 11th Int'l Precision Engineering, Machine Tools, and Metalworking Exhibition (MTA) opened in HCM City on July 2.

Around 80% of exhibitors are foreign companies who introduce the latest tools and equipment to Vietnamese industries. These technological advances could significantly improve the production capacities of sectors including the automobile industry, electricity, electronics, oil and gas, offshore exploitation, precision engineering, metalworking, manufacturing, and support industries.

The exhibition offers international groups and companies a chance to deepen their understanding of the Vietnamese market’s particular needs, meet with potential partners, and get a sense of the opportunities Vietnam will present in the very near future.

During the exhibition, which runs until July 5, attendees can experience demonstrations and seminars on measurement and precision testing, production contracts and sub-contracts, automated technology, welding technology, surface treatment,, manufacturing quality, and innovative approaches to design and manufacturing.

VCCI Exhibition Services Director PhanThi My Dung said the manufacturing industry is becoming a highlight of Vietnam’s economic landscape, attracting a variety of large investors. Machine tool producers are enjoying prosperity delivered by increasing worldwide demand.

Vietnam Mazda exports cars to Laos

The first batch of Mazda 2, Mazda 3, and CX-5 automobile products assembled in Vietnam will be shipped to Laos on July 14 as per a contract signed by the parties involved last week.

Mazda Vietnam is interested in broadening their exports to other left-hand drive Southeast Asian countries like Cambodia and Myanmar.

Mazda Vietnam is planning to export 300 vehicles in 2013, growing to 3,000 by 2014 and hitting 15,000 in 2020.

The Mazda 2 is the first of its kind assembled by Vina Mazda, a plant based in Quang Nam province’s Chu Lai Open Economic Zone.

Japan’s Mazda Group has 15 international manufacturing and assembling plants around the world. Vina Mazda was established two years ago as a member of the Truong Hai Auto Joint Stock Company (THACO).

THACO CEO Tran Ba Duong says Mazda’s Vietnamese output has consistently risen since its beginnings, reaching 3,000 this year. It now claims 5.4% of total market share and ranks fifth among members of the Vietnam Automobile Manufacturers’ Association (VAMA).

VIB finances Texhong’s project in Quang Ninh

Vietnam International Bank (VIB) last Thursday signed an agreement with Texhong Yinlong, a subsidiary of Hong Kong-based Texhong Textile Group, on a VND420-billion credit for the textile company to develop its project in Quang Ninh Province.

The textile factory of Texhong planned for development in Hai Yen Industrial Park, Mong Cai City is said to be the largest foreign direct investment (FDI) project ever to be built in an industrial park or an economic zone in Quang Ninh.

In the context of persistent economic woes, the credit agreement is a testament to VIB’s prestige and financial strength, and highlights its business policy of accompanying foreign-invested enterprises (FIEs) as well as local firms.

Dam Bich Thuy, general director of VIB, said: “We’re very proud for being chosen to provide funding and financial solutions for an FIE with large investment in Vietnam.”

“The VND420-billion credit for Texhong will be a key to Texhong’s success in Vietnam and besides, it will create 5,000 jobs for the people in Quang Ninh and nearby provinces,” she said.

Texhong Textile Group is among the ten largest textile firms in Hong Kong. “Since 2006, Texhong has carried out multiple projects, and we find Vietnam as a key and highly potential investment market,” said Li Ke Dong, CEO of Texhong Yinlong.

“We choose VIB, a local bank, for this important project as we highly appreciate the capability and reputation of the bank. Besides, VIB also offers flexible and preeminent financial products. Specially, we praise the bank for its specialization in the FDI customer service that has supported us a lot during the past time,” Li said at the credit agreement signing ceremony.

He pinned hope on further sustainable cooperation with VIB for mutual development in the future.

PIT changes to hit the back pocket

The taxable income threshold for personal income tax will rise to VND9 million per month from July 1 in a government move to ease tax burden amid economic woes.

The amended Law on Personal Income Tax (PIT), which raises the taxable income threshold to VND9 million ($432) per month and boosts deductions from taxable income to VND3.6 million ($173) for each dependant, will take effect from July 1, 2013.

The Ministry of Finance (MoF) estimated that the new rules mean that there will be mere one million taxpayers instead of nearly four million as currently. Budget collection will be reduced around VND15 trillion ($750 million) per year.

Under the old PIT Law, the taxable income threshold was VND4 million ($193) per month for both local and foreign workers in Vietnam. It allows taxpayers to deduct VND1.6 million ($77) for each dependant, defined as those who earn less than VND500,000 ($24) a month.

The new PIT Law has introduced some changes which will affect foreigners. The most significant of which is in relation to the taxation of non-cash benefits. The tax will increase as non-cash benefits will need to be grossed up with the exception of housing. While this change does make sense in terms of putting cash and non-cash benefits on a more equal footing, it is also motivated by a desire to increase the tax take. This will also affect Vietnamese who receive non-cash benefits.

Along with Vietnamese, foreigners will derive a tax saving from the increase in the individual and dependent deductions.

“The principal issue which always causes the most difficulty at the time of tax finalisation for foreign employees has not however been addressed,” said Thomas McClelland, tax partner of Deloitte Vietnam.

If an individual arrives in Vietnam during the year and becomes resident in that year, they are taxed in Vietnam on income derived in that year prior to arrival, on income which has no connection to Vietnam. “The ability to claim a tax credit for foreign tax is difficult in practical terms, and even if it can be claimed, in many cases it will not cover the Vietnam tax which is higher. For example, if the individual is from Singapore or Hong Kong, there will be significant additional tax to pay,” he added.

A new measure on residency tests slightly helps with respect to this issue in specific cases. Under the old law, having leased accommodation for 90 days in the calendar year meant that a person was resident in Vietnam. This has been increased to 183 days under the new law.

With respect to Vietnamese employees they will now be entitled to the same tax concessions overseas, that foreigners enjoy when they come to Vietnam. These include tax exempt relocation allowances, home leave airfares and school fees. For foreign expats, the tax exemption now covers kindergarten fees, whereas it was previously only viable from primary school to high school.

“The deduction of voluntary pension fund contributions is welcome in encouraging private provisions for retirement although it is capped at VND1 million per month,” said McClelland.

Manufacturing sector a magnet for investors

Vietnam’s manufacturing sector has proven a magnet for foreign direct investment inflows in 2013, but property showing a turn off for foreign players.

The Ministry of Planning and Investment’s (MPI) Foreign Investment Agency (FIA) last week reported that foreign direct investment (FDI) commitments in 2013’s first half hit $10.47 billion, up 15.9 per cent from one year ago. Of which, a giant $9.3 billion was committed in manufacturing sector, with retail, property, information technology and communication, logistics and construction making up the rest.

The disbursement FDI capital at the same time was $5.7 billion, up 5.6 per cent in comparison with the same period last year.

“Most FDI projects in terms of manufacturing this year in Vietnam come from export-oriented foreign companies like Samsung Electronics, Canon and Panasonic. Therefore, their investments are not affected by Vietnam’s slowdown economic situation,” said MPI Deputy Minister Dao Quang Thu.

“The recovery FDI data underscores that Vietnam’s fundamental advantages like labour cost, geographical and political stability continue to be attractive to foreign investors to set up manufacturing bases here,” he added.

Samsung Electronics just two weeks ago received an investment certificate for its $1 billion investment expansion plan in northern Bac Ninh province, that strengthens the Korean group’s commitment to make Vietnam its largest manufacturing base in the world.

The export growth of foreign-invested enterprises (FIEs) in Vietnam also supports this trend as the FIA data for the first half of this year reported that FIEs’ export revenue in 2013’s first half, excluding crude oil export, was estimated at $37.37 billion, a 28.3 per cent rise and accounting for two-thirds of the country’s total export value.

While investment inflows from export-oriented companies remain steady, investments in sectors driven by the domestic market are still modest. In 2008 and 2009 FDI in Vietnam’s property sector accounted for almost half of the total FDI sum, but now it accounts for only 4 per cent. Other sectors like retail and construction just account for 1.7 and 0.7 per cent respectively.

Phan Huu Thang, director of Centre for Foreign Investment Studies under Hanoi-based Vietnam National University, said foreign investors were cautious about investing in such sectors driven by the domestic market because of low consumption.

“I don’t think this is a good time for foreign investors to expand business in Vietnam to tap on the local market, as consumers are tightening their belt to reduce consumption,” said Thang.

The MPI reported in 2013’s first half that the total retail and services revenue rose 11.9 per cent in comparison with 19.7 per cent at the same period last year. If excluding price increases, revenue rose only 4.9 per cent, lower than 6.7 per cent last year. “Despite the improvements in the recent months, the total revenue of retail and services remains low,” the ministry said.

Hanoi’s products showcased at Africa’s largest exhibition

Dozens of Hanoi’s spearheads such as handicrafts, clothes, food and motorcycles are on display at ongoing the 20th Southern African International Trade Exhibition (SAITEX 2013) in Johannesburg city of South Africa.

The presence of the Vietnam’s capital in SAITEX 2013, the largest multi-sectoral fair in Africa, aims to promote trade and exports to Africa in general and South Africa in particular.

The Hanoi booth has attracted a great number of visitors who are interested in soy-bean oil, motorcycles and products from buffalo horns.

“Visitors’ attention shows that those products can well penetrate into the African market,” said Deputy Director of the Hanoi Department of Industry and Trade Nguyen Van Dong

According to John Thomson - Managing Director of the South Africa ’s Exhibition Management Services, SAITEX 2013, which opened on June 30, is the largest of its kind held so far with more than 1,000 companies from 45 countries participating in.

The three-day annual event, which bridges producers, exporters, importers and distributors of consumer goods, is expected to draw over 15,000 turns of visitors.

Capital cuts new auto registration fee to 12%

The Ha Noi People's Council has decided to cut registration fees for new cars with fewer than 10 seats to 12 per cent.

Registration fees for second-hand cars with fewer than 10 seats will remain at 2 per cent.

The current level of 15 per cent has been in effect since the beginning of April. Previously, the fee was 20 per cent.

The decision aims to increase car sales in the city, helping automobile manufacturers overcome difficulties caused by falling sales.

Motorbike users will pay a road-use fee of VND100,000 each year, to be sent to the country's road maintenance fund.

In a response to these changes, HCM City is considering lowering its fee to 10 per cent.

The Viet Nam Automobile Manufacturer's Association (VAMA) reported that sales of locally assembled automobiles in May rose 11 per cent over April and 42 per cent over the same month last year, totalling more than 9,700 units.

The association raised its prediction of total car sales this year from 100,000 to 108,000.

Toyota Viet Nam Company took the lead, selling around 2,800 units – an increase of 74 per cent over the corresponding period last year.

Ford sold 620 units, a rise of 176 per cent over the same period last year, while Kia saw a 26 per cent increase.

Several new models were provided to the market such as the Mercedes GLK220 CDI, BMW 3 GT, Honda City, Honda CR-V and Hyundai Elantra.

Rolls-Royce Motor Cars planned to launch an exhibition this week, confirming Viet Nam's potential for the ultra luxury market.

Police seize 40,000 smuggled eggs

Police in northern Quang Ninh Province yesterday impounded a truck carrying more than 40,000 smuggled eggs being transported from Mong Cai to Ha Long City.

The driver could not show papers to verify the origin of the products. He confessed that he was hired to transport the goods for an unknown person.

All eggs were seized for destruction as regulated.

Firms showcase manufacturing products

The number of local companies taking part this year in the country's largest manufacturing-solutions event has doubled to 67 since its first event held in 2005.

The four-day MTA Viet Nam 2013 opened yesterday with five sections focusing on meteorology, tool technology, subcontracting, automation and welding technology.

Tee Boon Teong, of the Singapore Exhibition Services' office in HCM City, said the demand for tools had grown alongside the growth of the manufacturing industry in Viet Nam.

"This creates a market for local representatives of international brands as they benefit from exposure to buyers from local firms well as international companies that have local operations," he said.

"This is a healthy reflection of Viet Nam's growing capabilities in manufacturing," he added.

Phan Thi My Dung, acting director of VCCI Exhibition Services, said the event featured 341 exhibitors from 21 countries and regions and 11 international pavilions, including exhibitors from Japan, France, Germany, Italy, South Korea, Singapore, Thailand and Taiwan.

A wide variety of quality products and solutions in precision engineering, machine tools and metalworking are being showcased.

First-time local exhibitors are showcasing a variety of manufacturing solutions, from laser machines and measurement devices to welding equipment.

Some of the newcomers are ITO Viet Nam Co, Welding Technology and Equipment Co and Viet Nam Precision Industrial Joint Stock Co.

A series of seminars by industry leaders is also being held. Viet Nam's welding technology will also be featured, and topics such as productivity, quality, management, design and machining will be discussed.

MTA Viet Nam 2013 was organised by the Singapore Exhibition Services in collaboration with VCCI Exhibition Service Co at the Sai Gon Exhibition and Convention Centre. It will end on Friday.

MOIT unveils portal on industry and trade

The Ministry of Industry and Trade (MOIT) has launched an online portal dedicated to providing a detailed database of information on industry and trade to the public.

The information to be made available includes, for example, detailed data on a specific commodity or export figures to a specific market, said Do Van Chien, Head of the MOIT Centre for Industry and Trade Information at the launching ceremony on July 2.

The online portal also provides a central database where the business community and others can quickly access data collected from different sources including the MOIT, the General Statistics Office and provincial departments of industry and trade.

MOIT Deputy Minister Ho Thi Kim Hoa said that the database will not only serves the business community but will also be an effective tool to help regulators formulate appropriate economic policies.

She added that plans are underway to expand the database in the future to include in-depth market analyses.

The database portal is available at http://eitdata.moit.gov.vn.

Banks charge low fees for gold custody service

After stopping gold mobilization, banks are now providing gold custody service at various fees, most of which are nominal.

Several banks just impose a token fee for gold custody service because most of those who use this service are their depositors previously.

For example, Nam A Bank provides the service for only VND1,000 per tael during the entire time gold is kept at the bank, rather than charging fees on a monthly basis.

At DongA Bank, the minimum fee for gold custody is VND2,000 and the maximum one is VND100,000. Meanwhile, Sacombank sets a service fee of VND10,000 per tael, which will vary among its branches.

An ACB employee said gold saving contracts would automatically turn into gold custody contracts if clients had not withdrawn their gold.

ACB charges a fairly high fee, 0.05% of the gold value. The fee will be lower if gold is kept for more than six months, but it will be at least VND50,000 per month.

Banks only keep SJC gold or the gold they previously produced. All the gold bars must be qualified with wrapping intact.

Le Thanh Trung, deputy general director of HDBank, said the demand for gold custody service would remain high in the coming time because citizens were buying more gold as prices went down.

Citizens are ready to pay for gold custody service to keep their gold safe and when in need, they can sell gold to banks, he said. HDBank now charges a fee of 0.05% of the gold value.

Some people wonder if banks will return the exact gold bars that clients entrust them with. Representative of a bank said banks could only return clients gold bars of the same quality.

If clients want to retrieve the exact gold bars, they should hire a safe deposit box to keep their gold at banks, he said.

Sacombank has offered safe deposit boxes for a long time, but they are only available at its headquarters for a fee of VND120,000-200,000.

Exports to Africa record highest growth

Vietnamese exports to Africa posted the highest growth in the year’s first half, says a report by the Ministry of Industry and Trade released on Monday.

Vietnamese exports to Africa in the first six months rose by an estimated 41.7%, which is the highest growth rate among all export markets of Vietnam. Exports to Asian countries only rose 19.9%, exports to Europe increased 15.8% and exports to the Americas picked up 7.2%, in which exports to the U.S. grew 13%.

The strong growth in exports to Africa is partly attributed to the increase in gold exports to South Africa, says the report.

In addition, data of the General Department of Customs shows that mobile phones and rice were two other major items Vietnam exported to Africa.

Exports to South Africa, Vietnam’s largest export market in Africa, in the first five months totaled US$274.6 million, up 32% year-on-year, with exports of cell phones and components reaching US$168.5 million, an increase of more than 3.5 times over the same period last year.

Since January, Vietnam has had difficulty exporting rice to a number of African markets, such as Ivory Coast, Ghana and Senegal, due to the competition with cheap rice from India and Thailand, according to the Department of South West Asia and Africa Markets under the trade ministry.

Still, rice exports to Africa in May grew more significantly than the preceding months because African rice stockpiles had declined, prompting African countries to boost imports.

In the first five months of 2013, Vietnam exported 83,600 tons of rice to Angola, up 186%; 68,800 tons to Cameroon, up 122%; 34,400 tons to Mozambique, up 31.4%; and 15,300 tons to Togo, a near seven-fold rise.

Vietnamese exporters penetrate French market

France is a potential market from which Vietnamese enterprises claim to have achieved an annual growth rate of nearly 40 percent in export revenue.

One reason for the growing purchase of Vietnamese products is that they are sold at lower prices than those made in France, such as household appliances, garments, footwear, mobile phones, and engineering tools.

French Customs show a sharp increase in the volume of machinery and electronic equipment imported from Vietnam up to 119 percent from US$433.6 million in 2011 to US$949.2 million in 2012.

For instance, household appliances (made from mostly wood and timber) rose 14.6 percent from US$116.2 million in 2011 to more than US$133.2 million in 2012.

Vietnam’s export earnings from France last year hit a record high of US$2.7 billion, up 39.6% or (US$1.9 billion) from the 2011 level. They were maintained at an annual growth rate of 35-37 percent in the previous year up to 2010.

The Vietnam trade office in France insists that domestic enterprises should strike up partnerships based on mutual trust, French businesses through international trade fair, and trade promotion workshops.

Trade Counselor to France, Nguyen Canh Cuong, warns that there is concern in some developed countries about free webmail services. If Vietnamese exporters rely on companies like Gmail, Hotmail, and Yahoo! to contact their French partners, they may risk being subject to automatic spam filtering.

Cuong notes that as the European Union’s (EU) timber import origin regulations took effect as of Mach 1, they would rather present the legal certificates of their product origin at the customs offices of EU member countries before delivering their goods overseas

According to Cuong, the Vietnamese community in France is also a potential customer base for home- made goods like noodles, seafood, fish sauce, clothes, footwear, and wood furniture which are sold at reasonable prices.

Cuong says the French CASINO retail chain is a distributor of Vietnamese products from the major Vietnamese retailer Big C, and domestic businesses could contact Big C as an intermediary if they wish to export their products to France.

The Ministry of Trade and Industry ‘s latest report says Vietnamese exports to France increased by 1.6 percent to US$769 million over the first five months of 2013.

Seminar on Euro crisis and Europe’s future

A seminar was co-organised by the Vietnam - Germany Friendship Association (VGFA) and Germany’s Friedrich-Ebert Stiftung (FES) in Hanoi on July 3 to discuss the Euro crisis and the future of Europe.

Hoang Van Huay, Vice President of the VGFA, spoke of the public debt recession in Europe and its impact on the European Union (EU) member countries.

The global economic crisis, he forecast, is likely to ease off in the second half thanks to stimulus packages adopted many countries.

Prof. Christa Randzio-Plath, President of Germany’s Marie-Schlei Association, analysed the monetary crisis as well as the future of currencies in the world, particularly the prospects of the Euro – the currency of connectivity in Europe - as well as the entire Europe and the European Banking Union.

The professor said the global economic and financial crisis has not only put the EU in a difficult position, but also posed new challenges to the union.

According to the scholar, it is necessary to establish a social alliance apart from the economic and monetary alliance to boost EU solidarity.

Seminar highlights Japan’s consumer protection experiences

A seminar was held in the northern province of Quang Ninh on July 3, to discuss Japan’s experiences in the implementation of consumer protection law in Vietnam.  

Participants delivered reports on the current situation of the implementation of the law, and regulations on competitive activities related to consumer protection.

Phan Khanh An, an expert from the Vietnam Competition Authority, said the law has created a legal corridor for protecting consumer rights in Vietnam. However, difficulties remain in the implementation of the law, while distribution channels have developed strongly in Vietnam.

Participants heard a presentation by Edakubo Ayumi, an expert from Japan Consumer Information Centre, on the legal structure and status of consumer protection in Japan.

She also shared experiences in protecting consumers by highlighting the active role of the Japanese government in the field, raising consumer awareness and exposing law breakers.

Vietnam to attend Chinese Export and Import Fair

Vietnam will attend the 114th China Import and Export Fair (CANTON Fair) which will be held in Guangzhou from October 15-November 4.

CANTON Fair will be divided into three phases based on different industries and sectors.

It is the world’s biannual largest fair, featuring 30,000 stands with three transaction sessions and drawing of more than 200,000 enterprises and distributors from the US, the EU, Japan, the Republic of Korea and Vietnam.

The event provides a good chance for domestic and foreign import-export businesses to boost trade promotions, introduce products and expand their markets.

This year, Vietnam will display 20 booths focusing on aqua-agro-forestry products, processed food, textiles, handicrafts, medical equipment, medical products and household electrical appliances.

The 113th CANTON Fair has attracted more than 202,700 international visitors from 211 countries and territories.

Vietnam-Japan cooperation in focus

Under the framework of Vietnam-Japan cooperation towards 2020 with a vision to 2030, the focus will be on six major areas.

They include electronics, agricultural machinery, agricultural and forestry processing, shipbuilding, environment and energy saving, and automobile industry.

They will play a key role in attracting domestic and foreign investment, especially from Japan, and applying new technologies in the industrial sector in particular and in the national economy in general.

They will grow by at least 20% annually and contribute at least 35% of total industrial production value by 2020.

They will use domestic input materials to increase the added value and competitive edge of their products in the international market.

A number of major projects will be put into operation to raise the output of oil refinery, steel production, electricity, gas and energy in the long run.

Vietnam is forecast to incur a trade deficit of USD9 billion this year, accounting for around 7% of the country’s total export revenue, one ministry said.

The Ministry of Industry and Trade said the rate is a bit lower than the figure estimated by the National Assembly (NA) and the government which was forecast at 8%.

According to the ministry, Vietnam’s economy has been gradually improving through as the year progresses, along with the world economy. They added that this gives hopes to increased growth and exports.

As a result, the ministry forecast that the country would gain export revenues of USD127 billion for this year, up around USD1 billion compared to the target set by the NA and the government.

Export revenues reached USD62 billion in the first half of this year, up 16% from the same period last year.

In order to realise the country's export target, revenue from exports will have to increase by USD10.67 billion in the last half of the year.

The country imported over USD62.4 billion worth of goods in the first half of the year, up 17.4% on year. This has brought the country’s trade deficit to USD1.4 billion during this six-month period, equal to 2.3% of its export revenues.

The ministry also noted that imports by domestic enterprises were up 6.3% between January and June, giving proof of positive development for the economy at large.

At the top of the list of imported products were mobile phones imports during the six-month period.

The ministry added that market demand could be expected to improve in the second half of the year.

Dong Nai finds more Japanese investmen

The southern province of Dong Nai has attracted 15 Japanese-funded projects with a total registered capital of 162 million USD over the first half of this year, according to the provincial Department of Planning and Investment.

During the period, the province's Nhon Trach 3 Industrial Zone alone attracted eight projects worth 33 million USD. Most of them are small and medium-sized projects in the engineering industry.

The latest addition has brought the number of Japanese-invested projects in the province to 132, worth over 2.8 billion USD, putting Japan third among 36 countries and territories investing in the locality.

The number of Japanese businesses showing interest and operating in Dong Nai has been increasing, the department said.

"We will continue to create all favourable conditions for small- and medium-sized Japanese enterprises to invest in the locality," said Chairman of the provincial People's Committee Dinh Quoc Thai.

While receiving a delegation from the Japan International Co-operation Agency (JICA) led by Jin Wakabayashi early last month, the chairman spoke highly of Japanese investors' operations in the province over the past time.

He said that through JICA support, a 35 million USD project to build an 18-ha workshop area for Japanese businesses in the Nhon Trach 3 Industrial Zone would be implemented soon.

The province has continued to perfect its infrastructure construction, develop support industries as well as better implement support policies for Japanese investors in an attempt to attracting more Japanese investment in the near future.

Fruit and veg export enjoys fertile growth

The national export value of fruit and vegetables rose 33.5 percent year-on-year in the first half of 2013, reaching 492 million USD.

Of this figure, 110 million USD was made in June, the Ministry of Agriculture and Rural Development has announced.

China continued to be the largest export market for Vietnamese fruit and vegetables, contributing a total export value of 90 million USD, a surge of 9.3 percent year-on-year.

Meanwhile, the export value of the produce to Japan achieved a big increase of 104 percent, hitting 55 million USD as a rising number of Japanese customers turned to Vietnam for tasty, nutritious and safe fruit and vegetables.

However, the export volume was still smaller than the demand of the Japanese market, the ministry said.

Other markets also saw a sharp increase in export value, including an 84.5 percent rise to 13 million USD in the Republic of Korea and an 85 percent hike to 16 million USD in Thailand .

Nguyen Van Ky, general secretary of the Vietnam Fruit and Vegetables Association (Vinafruit), said dragon fruit is particularly valuable, accounting for 40 percent of the total export value, with the US its biggest outlet.

Since Vietnam was permitted to market this fruit in the country in 2008, the export volume has risen sharply from 100 tonnes to 1,200 tonnes in 2012.

Dragon fruit exports to the US are likely to reach 2,000 tonnes in 2013, as the export volume has doubled in the first half of this year. Other markets like Japan and the RoK also saw a 25 percent surge over the previous year.

Vietnamese rambutan is also favoured in the US , although its price is triple that of those from Mexico (about 15 USD per kilo). In 2012, about 350 tonnes of Vietnamese rambutan were shipped to the US , earning 3 million USD.

Meanwhile, Vietnamese mangos, litchis and longans should be granted licences for export to markets in the US , Japan , Taiwan and the RoK in the time to come.

Despite the positives, the preservation of produce after harvest is the weakest point of local fruit, said Bui Thi Thanh An, deputy head of Trade Promotion Agency. She said better preservation will lead to increased value.

EVN pulls the plug on non-essential business operations

Electricity of Viet Nam (EVN) is withdrawing its capital from several non-core businesses, especially in banking and real estate sectors, it said in a report released yesterday.

The group is required to complete its plans to withdraw capital from several non-core businesses by 2015.

In the first six months of the year, EVN has focused on divestment of An Binh Commercial Joint Stock Bank (ABBank), Global Insurance Company (GIC), Sai Gon Vina Real Estate Company, Central Power Real Estate Joint Stock Company (LEC), and EVN Investment and Construction Joint Stock Company.

EVN and its members have completed their development plans in the 2012-15 period with a vision to 2020 and has submitted them for approval.

It also approved production and business plans of five companies in the period, including saving and using electricity efficiently in the years of 2013-15; saving costs in management, production, business and investment; restructuring the National Power Transmission Corporation and other five electricity companies.

The group handed over authority, capital and assets to generation companies (GENCO).

The Ministry of Industry and Trade has asked EVN to take responsibility for its debts and other assets as well as to ensure business effectiveness.

It also required the group to withdraw all capital from real estate and banking industries.

Africa-VN trade soars

Vietnamese exports to Africa during the first half of the year registered growth of 41.7 per cent, the highest rate among the country's export markets, according to the Ministry of Industry and Trade (MoIT).

Exports to Asian countries rose by 19.9 per cent, exports to Europe increased by 15.8 per cent and exports to the Americas grew by 7.2 per cent, according to a report released by the ministry on Monday.

The strong growth in exports to Africa is partly attributed to the increase in gold exports to South Africa.

In addition, data from the General Department of Customs shows that mobile phones and rice were two other major items Viet Nam exported to Africa.

Exports to South Africa, Viet Nam's largest export market in the continent, during the first five months totaled US$274.6 million, up 32 per cent year-on-year, with exports of cell phones and components reaching $168.5 million, a surge of more than 3.5 times year-on-year.

Since January, Viet Nam has had difficulty exporting rice to a number of African markets, such as Ivory Coast, Ghana and Senegal, due to competition of cheaper rice from India and Thailand, according to MoIT's Department of South West Asia and Africa Markets.

Still, rice exports to Africa in May grew more significantly than during the preceding months because African rice stockpiles had declined, prompting African countries to boost imports.

During the first five months of 2013, Viet Nam exported 83,600 tonnes of rice to Angola (up 186 per cent), 68,800 tonnes to Cameroon (up 122 per cent), 34,400 tonnes to Mozambique (up 31.4 per cent), and 15,300 tonnes to Togo, a near seven-fold rise.

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