Health authority issues complete recall of four Sisley Paris products

Four products of French company c.f.e.b. SISLEY SAS will be recalled in Vietnam, according to dantri.com.vn.

According to document no. 18475/QLD-MP issued by the Department of Drug Management under the Ministry of Health, the four products, namely Sisley eau tropicale eau de toilette, Super soin solaire milky body mist spf 30, Eau de Sisley 2, and Phyto-blanc lightening compact foundation SPF 20, will be removed from the shelves and be recalled throughout the country.

The products are imported and sold by Vietnam-Japan Performance Organisation and Training Co. Ltd. (Viet Artical Co., Ltd.) headquartered in Ho Chi Minh City. The reason for the recall is a significant difference between the ingredients as marked on the product labels and the documents submitted to the department.

In this round, the department also stopped the sales of and recalled the Organia white milk body cleanser produced by South Korean White Cospharm Co., Ltd. for the same reason. The product is imported and sold in Vietnam by Ngan Thanh Tam Co., Ltd. based in Ho Chi Minh City.

Established in 1976, c.f.e.b. SISLEY SAS, along with its subsidiaries, manufactures and markets cosmetics, including skin care products, facial anti-aging products, body care products, and makeup products for men and women.

White Cospharm produces hair, facial, and body care products. Outside of South Korea, where its products are distributed by E-mart, Home-plus, and Lotte-mart, the company also markets its products through agents in New York, Japan, China, Singapore, and Vietnam.

Vietnam, Belarus eye reinforced economic cooperation

Secretary of the Ho Chi Minh City’s Party Committee Dinh La Thang suggested stronger economic cooperation between Vietnam and Belarus in the context that the free trade agreement between Vietnam and the Eurasian Economic Union (EAEU) took effect on October 5. 

In a reception for Belarusian newly-appointed Ambassador to Vietnam Vladimir A. Goshin in the city on October 6, the host said the two countries need to push more efforts to step up bilateral economic link in the future. 

He affirmed the municipal authorities will facilitate Belarusian investors' operations in HCM City, contributing to bringing practical benefits to both sides. 

While speaking highly of affiliation between Belarus and the Saigon Transportation Mechanical Corporation (SAMCO) in bus manufacturing, he expressed his hope that Ambassador Goshin will work to assist Belarusian firms in expanding their investment and business in the southern city. 

In a meeting with Chairman of the municipal People’s Committee Nguyen Thanh Phong in the same day, the ambassador appreciated investment climate in HCM City. He said the hopes for greater cooperation between Belarus and HCM City, especially in the fields of his country's strength likely auto manufacturing, infrastructure construction.

Business community among key economic growth impetus

The business community is among the three key groups of driving forces proposed to help achieve the economic growth goal at 6.7 percent for 2016, according to the General Statistics Office (GSO).

GSO Director General Nguyen Bich Lam said in the first nine months, over 100,000 businesses registered establishment and resumed their operation. Of them, 81,000 were new enterprises with a total capital of over 629 trillion VND (28.3 million USD). 

Lam attributed the increase to a favourable business condition.

He affirmed the business community is a driving force for economic growth in the remaining months of this year.

Lam emphasised economic restructuring as the second driving force with focus on the agricultural sector to boost economic development.

In the first nine months this year, the agricultural sector accounted for 15 percent of the GDP, Lam said, adding that restructuring agricultural sector will promote exports.

Boosting domestic consumption is described as the third driving force in order to ensure sustainable economic growth, according to Lam.

In the reviewed period, the country’s GDP grew 5.93 percent, lower than the previous years. The agro-forestry-fisheries sector increased 0.65 percent, a six-year low increase, according to the GSO.-

Big Swedish trade mission on Vietnam visit

Vietnam attaches great importance to developing broad relations with Sweden, Prime Minister Nguyen Xuan Phuc told Swedish Trade Minister Ann Linde and a delegation of Swedish businesses in Hanoi on October 6. 

The PM said the Vietnamese Government has sped up the improvement of the business and investment environment to attract investors, including those from Sweden . 

He said the upcoming signing of the Vietnam – EU free trade agreement would open up more cooperation opportunities for business communities of the two countries. 

The Government leader noted that relations between Vietnam and Sweden are developed in all fields, but the economic cooperation remains modest. 

Two-way trade is still failing to meet its potential, reading just 1.2 billion USD, he said, urging the two sides to continue speeding up cooperation in order to significantly boost that figure. 

Swedish Minister Linde affirmed that Sweden would further strengthen cooperation with Vietnam , particularly in the fields of health, education, science and technology, economy, trade and investment. 

She said she was accompanied by the delegation with the biggest ever number of businesses seeking investment and cooperation opportunities in Vietnam.

Northern industry, trade sectors forge links

The Ministry of Industry and Trade (MoIT) held a workshop in the northern province of Ninh Binh on October 6 to seek broader links between trade sectors in 28 northern cities and provinces.

The event reviewed the industrial production outcomes in 2015 and the first nine months of 2016.

The municipal and provincial Departments of Industry and Trade shared experience in the State management in the field and proposed measures to embrace their links to optimise potential and strengths in each locality.

Participants asked the MoIT and the People’s Committees to remove difficulties for businesses, develop production for economic growth and ensure social welfares.

They discussed various issues such as the connection of farm produce markets, the efficiency of policy to develop industrial clusters, and the promotion of trade links in 2016 and the following years.

Insiders suggested the State build proper mechanisms and policies to develop handicraft and small industry and craft village industry, as well as attract businesses to invest in industrial clusters under the public-private partnership (PPP) model.

In the coming time, the industry and trade sectors in 28 cities and provinces in the north will help businesses maximise their manufacturing capacity, enhance State management in environmental protection at industrial parks, and ensure electricity in rural areas.

Relevant agencies will continue to promote communication campaigns to raise public awareness of international integration, protection of customers’ rights, and e-commerce, while forging connectivity among joint ventures, businesses and foreign partners.

Exhibitions help promote links in support industry

A string of exhibitions of machine tools , electronic technologies and equipment, and solutions for support industries kicked off in HCM City on October 6.

The METALEX Vietnam , the NEPCON Vietnam, and a supporting industrial product exhibition are displaying over 500 brands from 25 countries and territories with a developed supporting industry, including Japan, Singapore, the Republic of Korea, India, China, Thailand and Taiwan (China).

The events offered domestic and foreign exhibitors a good chance to share information, enhance links and establish partnerships, especially in industrial production and manufacturing.

According to Director of the municipal Investment and Trade Promotion Centre Pham Thiet Hoa, a support industry development centre and a showroom of support industry products were set up in HCM City to promote the development of the support industry.

Infrastructure facilities serving the sector have been invested while support industry projects have been included in the city’s promotion programmes, he added.

Vice Chairman of the municipal People’s Committee Le Thanh Liem said the city is seeking to bolster links between investors in high-tech zones and domestic support industry producers, whilst applying preferential policies related to trade and investment promotion, credit support, technological innovation for businesses operating in the field.

Vietnam’s metal, plastic, rubber, electricity and electronic industries are set to meet 60 percent of industries’ spare parts demand by 2020, and 80 percent by 2030.

Industrial and export processing zones in HCM City are home to 260 foreign-invested firms specialising in electronic, mechanical and automobile industries, accounting for 50 percent of the total foreign businesses.

Metalex Vietnam, an international exhibition on machine tools and metalworking solution show, offers chances for manufacturers to update new technology, expand business networks and exchange experiences with experts at seminars.

Meanwhile, Nepcon Vietnam 2016 is displaying testing technologies, equipment and support industries for electronics manufacturing.

These serve as business-matching platforms, enabling domestic and foreign firms to seek investment and cooperation opportunities, thus forming partnership in the supporting industry.

Swedish enterprises to increase investment in Vietnam

Swedish businesses will expand their investment in Vietnam as the EU-Vietnam Free Trade Agreement (EUFTA) enters into force, said Swedish Minister for EU Affairs and Trade Ann Linde in her meeting with Deputy Minister of Industry and Trade Do Thang Hai in Hanoi on October 5. 

She revealed that her government passed an ambitious export strategy to boost trade and participation of Swedish companies in the global economy. Bilateral trade with and investment in Southeast Asia, including Vietnam, is an important part of the strategy. 

With the upcoming implementation of the EVFTA, two-way trade between Vietnam and Sweden will definitely increase in the future, she affirmed.

At the meeting, Ann Linde also shared her country’s experience in innovation and creativity, which she said is an important factor for Swede’s development.

Sweden set out the goal of becoming the first country in the world without using fossil fuel, she said, adding that the European country has spent 400 million SEK (46 million USD) developing environmental technology.

For his part, Deputy Minister Hai said that Vietnam, as one of the economies with the highest growth rate in Asia, is in need of modern energy solutions that provide high-quality energy sources for residents.

The country also needs safer and more effective solutions in production in order to create safe and environmentally friendly products, he added.

Thailand called to invest in Vietnam’s supporting industry

The Vietnam Trade Office in Thailand along with the Thailand Board of Investment (BOI) and the Federation of Thai Industry held a workshop in Bangkok on October 6 to encourage Thai businesses to invest in the supporting industry in Vietnam.

Chokdee Kaewsang, Deputy Secretary General of the BOI, said Thailand has over 20 years of developing the supporting industry – which is a foundation for such key sectors as automobile manufacturing, electronic equipment and machinery to grow and improve competitiveness of industrial products.

Growing the supporting industry will help draw in foreign investment, he said, highlighting skilled human resources and the government’s tax incentives and supportive measures as important factors to develop the field.

Commenting on investment opportunities in Vietnam, he said Vietnam is a potential market with geographical advantages, high and stable economic growth, and open investment attraction policies.

Particularly, Vietnam’s strong integration in the regional and global economies via a series of free trade agreements will be a magnet for overseas firms, including those from Thailand, he stressed.

He spoke of the Vietnamese government’s efforts over the past time to develop the supporting industry via preferential policies and specific development orientations.

According to Vietnam’s Ministry of Planning and Investment, as of June 2016, Thailand ran 466 projects in Vietnam with a total investment capital of 9.44 billion USD, ranking 10th out of the 116 countries and territories investing in Vietnam.

The average capital of a Thai project is around 20.26 million USD, 14 million USD higher than that of a foreign-invested project in Vietnam. Thai businesses pumped big investment into the supporting industry in Vietnam.

Seminar helps businesses solve trade disputes

A seminar took place in Ho Chi Minh City on October 6 to help businesses prevent risks and address disputes in international trade.

The event was co-organised by the HCM City Investment and Trade Promotion Centre (ITPC) and the Vietnam International Arbitration Centre (VIAC).

Participants held that in recent import-export activities, many Vietnamese enterprises have met with risks when selling or purchasing goods from foreign partners, who did not seriously implement the signed contracts.

According to Nguyen Minh Hang, Dean of the Law Department under the University of Foreign Trade, said that the main reason of trade disputes in Vietnam over the past time was the quality of goods. Therefore, businesses should look into regulations on goods quality and goods quality examination in contracts they will sign.

Most Vietnamese firms did not consider thoroughly articles in the import-export contracts and felt puzzled in addressing trade disputes in import-export activities, she said, adding that they were not aware of the importance of trade arbitrators and consulting experts about legal regulations while signing trade contracts so they were at a disadvantage compared to their partners in trade disputes.

When facing trade disputes, businesses need to seek support from trade arbitrators to have effective solutions, said Vu Xuan Phong, VIAC Vice President.

As the UN Convention on International Sale of Goods (CISG) will take effect in Vietnam on January 1, 2017, experts said enterprises should examine their import-export contracts carefully to take advantage of benefits from the convention. 

CISG now has 85 member nations, including most of Vietnam’s major partners like the EU, the US, Japan, the Republic of Korea, Singapore and Canada.

Vietnam Trade Fair opens in Cambodia

The Vietnam Trade Fair 2016, themed “Friendship, Cooperation and Development”, opened in Phnom Penh, Cambodia on October 6. 

The five-day event, co-organised by the two countries’ defence and trade ministries, attracted nearly 150 Vietnamese firms and trade promotion centres from Lam Dong, Kien Giang and Phu Yen with a total of more than 250 stalls. 

On display are apparel, footwear, agro-forestry-fisheries, handicraft, processing food, electronics, mechanical engineering, chemicals, construction materials, animal feed, fertilisers, among others. 

Speaking at the opening ceremony, Deputy Defence Minister Tran Don said the fair is part of the national trade promotion programme for 2016, aiming to help Vietnamese firms, including those from the army, expand market and seek business opportunities in Cambodia and ASEAN. 

Cambodian Secretary of State Chhuon Dara, for his part, said the event also affords the two nations a chance to strengthen exchanges and mutual cultural understanding. 

The fair also showcases photos featuring Vietnam-Cambodia ties on the occasion of the 49th anniversary of diplomatic ties, and the Vietnam People’s Army involvement in production and economic development. 

On the occasion, the organising board presented gifts to the Royal Cambodian Army school and poor families in Cambodia.

Auto industry heeds environmental protection

The auto industry is striving to balance between its production and business, and environmental protection, heard a seminar in Hanoi on October 6. 

Truong Thanh Hoai, head of the Ministry of Industry and Trade (MoIT)’s Heavy Industry Department, said auto makers have paid heed to vehicles that can meet both consumers’ demands and environmental protection requirements. 

The Vietnamese Government and the MoIT in particular always back the production of environmentally friendly car models, as reflected in the auto strategy and planning as well as relevant policies, he said. 

According to the Association of Vietnam Automobile Manufacturers’ Association, environmental pollution is getting worse in big urban areas mainly due to emissions of CO, Pb and NOx discharged by means of transport. 

To deal with the situation, auto makers have renovated technologies to churn out fuel-efficient and environmentally friendly vehicles, the association said. 

At the seminar, auto makers like Ford Vietnam, Fuso and Toyota introduced cutting-edge auto manufacturing technologies. 

The seminar forms part of the ongoing Vietnam Motor Show (VMS) 2016 which opened in Hanoi on October 5, displaying more than 100 car models by 13 domestic automobile makers, including Chevrolet, Ford, Honda and Toyota.

State-owned enterprises equitisation remains slow

The restructuring of State-owned enterprises (SOEs) in the first nine months of this year failed to meet the set target, with 49 SOEs having their equitisation plans approved in the period, said the Ministry of Finance. 

Among those were large enterprises like the Vietnam Engine and Agricultural Machinery Corporation, the Machine and Industrial Equipment Corporation and the Vietnam National Construction Consultants Corporation. 

The total real value of these 49 businesses is over nearly 32 trillion VND (around 1.44 billion USD), including nearly 23.2 trillion VND (1.04 billion VND) of State capital. 

According to the approved equitisation plans, their combined chartered capital is estimated at over 23 trillion VND (over 1.03 billion USD), of which the State holds about 11.1 trillion VND (499.5 million USD). 

In the last three quarters, economic groups and corporations divested 3.2 trillion VND (144 million USD) from five sensitive fields. 

In the coming time, the Business Finance Department under the Ministry of Finance (MoF) will continue withdrawing capital that businesses have invested in non-core areas. 

Efforts will be intensified to quicken the restructuring, improve the quality of administration in SOEs and their operation efficiency. 

Attention will also be paid to improving the efficiency of management and supervision of SOEs, ensuring transparency on their activities, and enhancing inspection and management of State-owned economic groups and corporations. 

According to the MoF’s reports, State budget collection reached 718.3 trillion VND (over 32.3 billion USD) in the last three quarters, equivalent to 70.8 percent of the yearly target and up 5.2 percent year on year.

Meanwhile, budget spending was 870.5 trillion VND (around 39.1 billion USD), equal to 68.4 percent of estimates and up 5.7 percent from the same period last year. 

The disbursement of basic construction investment reached 54.5 percent of the plan while that of Government bonds 38.8 percent. 

During the period, tax agencies inspected over 48,500 businesses, collecting 8.3 trillion VND (373.5 million USD) in fines, while customs agencies made over 5,100 inspections after customs clearance, collecting 1.5 trillion VND (67.5 million USD) for the State budget.

Long An posts 7.8 percent growth in export value

The Mekong Delta province of Long An earned nearly 2.9 billion USD from exports in the first nine months, equal to 68 percent of the year target and an increase of 7.8 percent against the same period last year. 

According to Nguyen Van Tieu, director of the Department of Planning and Investment, garment-textiles and cashew nuts are commodities with strong increases. 

The export of garment and textile products brought in 622 million USD, up 10.2 percent year on year, while 15,968 tonnes of cashew nuts were shipped abroad for 122 million USD, up 8.6 percent. 

The province said in the rest of the year it would continue monitoring enterprises’ production and business to provide timely assistance as well as intensify the fight against the smuggling. 

Long An will also organise a conference on investment promotion in mid-October. 

The province is pushing ahead with efforts to improve its competitiveness. In 2015, Long An’s Provincial Competitiveness Index (PCI) reached 60.86 points, ranked 9th nationwide. The index was 0.51 points lower than that of 2014, leading to the province dropping two places in its ranking. However, Long An remained the second best performer in the Mekong Delta behind Dong Thap.

NA Vice Chairman urges completion of FTA with European Free Trade Area

Vice Chairman of the National Assembly Phung Quoc Hien has urged member countries of the European Free Trade Area (EFTA) to continue pushing forward with the negotiation on a free trade agreement between Vietnam and the EFTA with due consideration for core interest of both sides. 

He made the call during a reception for a delegation of parliamentarians from EFTA nations led by Vice President of the Norwegian parliament Svein Roald Hansler in Hanoi on October 5. 

Hien appreciated the development of ties between Vietnam and EFTA member countries, noting that trade and investment exchanges between Vietnam and the EFTA have seen expansion but are still yet to meet both sides’ potential and strength. 

He suggested that in the coming time, the two sides encourage EFTA enterprises to increase their investment and operation in sectors with high demand in Vietnam. 

Host and guests shared the view that an early conclusion of the FTA will lay a foundation for propelling the bilateral cooperation in economics and trade. 

The visiting parliamentarians expressed their wish that EFTA and Vietnam will develop a more intensive and comprehensive partnership, thus promoting their goods, services and investment exchanges. 

Previously, the EFTA delegation held talks with the NA’s Committees for External Affairs, and Economic Affairs. The two sides agreed to enhance cooperation in diplomacy, economics and delegation exchanges, thus boosting the Vietnam-EFTA parliamentary relations.

Dak Lak pitches for investment in agro-forestry

More and more domestic and foreign businesses are investing in the Central Highlands province of Dak Lak, mostly in agro-forestry, energy, services and industrial production, said Vice Chairman of the provincial People’s Committee Nguyen Tuan Ha. 

According to him, the province will continue to call for investment in building facilities to process coffee and other agro-forestry products. 

In the first nine months of this year, the province attracted 71 projects, 25 of which have received licences worth 997 billion VND (45.3 million USD), and the 44 others valued at more than 25.1 trillion VND (1.14 billion USD) are undergoing procedures. 

Since 2012, Dak Lak has lured over 106 trillion VND in 671 projects. 

Two companies from the Republic of Korea - Solar Park and Namu - have proposed two projects on solar energy, one in Ea Sup district with a capacity of 403 MW and total capital of more than 750 million USD, and the other worth 150 million USD in Ea Sup and Buon Don districts.

The province has offered support to investors in the form of infrastructure in industrial parks and complexes, preferential land lease and subsidies for vocational training.

FTA enforcement opens up new prospects for Vietnam-EAEU trade

Ambassadors of member countries of the Eurasia Economic Union (EAEU) have pinned high hope on trade and investment ties between EAEU and Vietnam as their free trade agreement took effect on October 5.

The pact was inked in Burabay, Kazakhstan, on May 29, 2015 by Vietnam and the EAEU members, namely Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan.

Kazakhstani Ambassador to Vietnam Beketzhan Zhumakhanov said at a press conference on October 5 that the deal will create optimal conditions for the concerned parties to promote their products and attract investments from each other.

Kazakhstan and Vietnam will have a chance to develop cooperation in railway transport as transportation will be very important after the agreement came into force, he said.

Russian Ambassador K.V.Vnuhov said trade between Vietnam and Russia reached 3.9 billion USD in 2015, representing a year-on-year rise of 4 percent. In the first seven months of this month, the figure stood at 2 billion USD, up 11 percent against the same period last year.

Vietnam has become Russia’s largest trade partner in the Association of Southeast Asian Nations (ASEAN), he said, noting that the two countries aim to raise the bilateral trade to 10 billion USD in 2020.

Meanwhile, Armenian Ambassador Vardanyan R.G said the agreement helps expand trade among the EAEU, the Shanghai Cooperation Organisation (SCO), ASEAN and the EU.

Belarusian Ambassador V.Goshin affirmed that Belarus will step up the import of Vietnamese seafood, rice, rubber, tea, coffee, spice and clothes.

With great opportunities and modern infrastructure, Belarus can serve as a gateway for Vietnamese companies to access the EAEU countries and Eastern European nations, the diplomat noted.

The enforcement of the EAEU-Vietnam free trade agreement is expected to lift bilateral trade to 8-10 billion USD in the years to come from the current 4 billion USD.

Under the agreement, Vietnam will remove import tariffs on 59 percent of the total tax lines on goods from the EAEU, including meat products, wheat flour, alcohol, mechanical equipment and steel products. The tariffs on another 30 percent of goods will be gradually reduced to 0 percent in the transitional period.

The average level of Vietnam’s duties on EAEU goods will drop from 10 percent to 1 percent, while EAEU’s average import tariffs on Vietnam’s goods will be reduced from 9.7 percent to 2 percent in 2025.

The tax removal is expected to spur the EAEU’s export of agricultural and industrial products to Vietnam, and vice versa, Vietnam’s farm produce, garment, bags and electrical devices will have better access to the EAEU market.

At the same time, businesspeople of both sides will have opportunities to take part in joint projects in the EAEU countries and Vietnam.

Vietnam Motor Show 2016 opens in Hanoi

The Vietnam Motor Show (VMS) 2016 opened on October 5 in Hanoi, showcasing more than 100 car models by 13 domestic automobile makers, including Chevrolet, Ford, Honda and Toyota. 

Along with models present in Vietnam for the first time, more than 80 booths at the event also introduced accessories and spare parts from support industry firms, as well as products of insurance enterprises and banks. 

Opening the event, Deputy Minister of Industry and Trade Do Thang Hai stated that the Government has designed a number of policies to support Vietnamese automobile manufacturers’ development. 

The Government has also set a goal of making automobile manufacturing an important industry that serves the domestic demand and then exports, motivates the growth of other industries and becomes the supplier of accessories and spare parts in the world car-making chain, he said. 

Pointing out challenges facing the domestic automobile industry, he said the VMS shows the efforts of firms to boost the development of the auto sector as well as support industries. 

The VMS 2016 will run until October 9.

French company wants to invest in HCM City’s infrastructure

French-based VINCI Construction has shown intention to invest in join infrastructure development in Ho Chi Minh City, particularly in building metros and flooding prevention works as well as turning waste into energy.

VINCI Construction Chairman Jerome Stubler expressed the wish at his meeting with Chairman of the Ho Chi Minh City People’s Committee Nguyen Thanh Phong in the southern hub on October 5.

The company is also interested in housing development and the construction of high-rises, Stumbler said at the working session.

Phong affirmed that Ho Chi Minh City welcomes VINCI Construction’s investment in these sectors, adding that local authorities will create the best possible conditions for the group as well as other French investors.

VINCI Construction has operated in Vietnam for more than 20 years. In 2014, it signed a two-year contract with the Ho Chi Minh City University of Technology on a training programme in advanced technologies in civil engineering.

Fuel prices increase slightly

The prices of RON 92 petrol and bio-fuel E5 rose 172 VND and 160 VND per litre, respectively, from 4:30 pm on October 5. 

Following a joint decision by the Ministry of Industry and Trade and the Ministry of Finance, the prices of diesel 0.05S and kerosene increased 169 VND and 137 VND per litre, respectively. 

It was the fourth consecutive fuel price hike in recent times, with a total increase of nearly 1,750 VND (0.078 USD) per litre.

It also marked the 19th adjustment this year, with nine increases, totally by 4,500 VND (0.202 USD) per litre; eight falls, totally by 4,463 VND (0.20 USD) per litre; and two times unchanged. 

Under the joint decision, RON 92 and E5 are sold at no more than 16,404 VND (0.74 USD) and 16,141 VND (0.72 USD) per litre, while the ceiling prices of diesel and kerosene are 12,424 VND (0.56 USD) and 11,023 VND (0.49 USD) per litre. 

The ministries said the global price of RON 92 during the last 15 days to September 20 was 56.177 USD per barrel, up 0.6 USD per barrel, while that of diesel 0.05S was 55.615 USD per barrel, increasing by approximately 1 USD per barrel. 

The two ministries also decided to keep retailers’ contribution to the Petroleum Price Stabilisation Fund unchanged and give them a subsidy of 300 VND per litre for RON 92 and E5 from the fund.

The base fuel prices will be adjusted by the two ministries every 15 days, depending on the fluctuation of world oil and gas prices since the previous announcement and should be in accordance with the government’s Decree 83/2014/ND-CP, and Circular 39/2014/TTLT-BCT-BTC.

Gov’t orders rice exporters to check shipments to US

The Ministry of Agriculture and Rural Development (MARD) has ordered Vietnam’s rice exporters to closely control the quality of rice exported to the US, after some exports were rejected.

The ministry has warned that enterprises having rice exported to the US should inspect and carefully assess residues of pesticide in rice shipped to that market to avoid future problems, reported vneconomy.vn.

According to the ministry, the US Food and Drug Administration (FDA) earlier inspected Vietnam’s rice exports to the US market and found Vietnamese rice had eight active chemical elements that exceeded allowable limits.

However, all eight elements were pesticides permitted for use in Vietnam. Since then, the ministry has sent a delegation to the US to solve problems related to Vietnamese rice lots being rejected. This incident has created an urgent demand to coordinate lists of pesticides permitted for use in Vietnam, and also the US, to avoid future rejections.

Meanwhile, the Vietnam Food Association reported, according to the FDA, that in the first four months of this year 95 containers of Vietnamese rice, or 1,700 tonnes, were returned from the US, including jasmine fragrant rice, jasmine broken rice, brown rice and high-quality white rice.

The US is a potential rice market for Vietnam, but this market has presented high demands in quality, as well as many technical barriers.

The FDA reported that from 2012 to August 2016 some 412 containers of exported Vietnamese rice, or 10,000 tonnes of rice sent from 16 enterprises, were rejected for hygiene or safety reasons.

Further, Vietnam’s General Department of Customs said that in the first eight months of this year, Vietnam exported 3.37 million tonnes of rice, earning 1.51 billion USD. Also during this period, rice exports fell by 16.6 percent in volume and 13 percent in value, year-on-year.

The main export markets for Vietnamese rice in the first eight months included China, with 1.18 million tonnes, Ghana, with 343,000 tonnes, Indonesia, with 359,000 tonnes, and Cuba, with 294,000 tonnes.

The US accounted for a small volume of the total national volume of exported rice, with 22,084 tonnes worth 12.2 million USD in the first eight months of this year. Rice exports had a strong drop against a volume of 33,000 tonnes, and a value of 18.7 million USD in the same period last year.

Vietnam’s economy resilient amidst global slowdown: WB

Vietnam’s economy has proven resilient amidst slower global growth, according to the World Bank’s newly released East Asia and Pacific Economic Update.

Economic activity in Vietnam moderated somewhat in the first three quarters of 2016 due to the impact of a severe drought on agricultural production and slower industrial growth, the report said.

But macroeconomic stability has been maintained and inflationary pressures remain subdued, it added.

While Vietnam continues to reduce poverty, the decline in agriculture poses short-term risks. The livelihoods of households that rely on agriculture for income are particularly vulnerable.

For the medium-term, the outlook remains positive; however, it is necessary to push ahead with fiscal and banking reforms to sustain higher growth.

The report expects growth in developing countries in the region to reach 5.8 percent in 2016 and 5.7 percent in 2017-2018.

Steering Committee on ASEAN, national One-Stop-Shop mechanism

The Prime Minister has decided on the establishment of the national steering committee on the ASEAN and National One-Stop-Shop (OSS) Customs Mechanism and Trade Facilitation led by Deputy Prime Minister Vuong Dinh Hue. 

Hue is aided by a deputy minister from the ministries of public security, industry and trade, transport and communication, planning and investment, science and technology, foreign affairs, agriculture and rural development, national defence, finance, natural resources and the environment, information and communications, justice, culture, sports and tourism, construction, public health, and internal affairs; a deputy governor of the State Bank of Vietnam; a vice chairman of the Government Office; the Chief of the General Customs Department; and leader of the Vietnam Chamber of Commerce and Industry.

The steering committee is an interdisciplinary agency tasked to assist the Prime Minister in instructing, coordinating, inspecting and organising the implementation of the ASEAN and National One-Stop-Shop (OSS) customs mechanism in line with regulations of the agreement and protocol on building and implementing the ASEAN OSS customs mechanism. It will carry out synchronous measures to facilitate trade and cross-border goods exchange. 

It helps the Government and the Prime Minister direct, manage and coordinate ministries and ministerial agencies in building and deploying the ASEAN and National OSS customs mechanism and executing measures to make it easy for cross-border trade.

It is to study revising, supplementing, and abolishing normative documents or building new legal documents serving the operation of the ASEAN and National OSS customs mechanism and the country’s commitments to international treaties to which it is a member. 

Besides, it is responsible for guiding and inspecting the implementation of the ASEAN and National OSS customs mechanism and solutions to creating favourable conditions for cross-border trade.

Retail sales slow down over nine months

The total revenue from retail trade and services topped 118.4 billion USD during the first nine months of this year, surging 9.5 percent year-on-year, according to the General Statistics Office (GSO). 

Excluding inflation, the increase would be 7 percent, lower than the 9.2 percent seen in the same period last year, GSO said. 

GSO statisticians blamed the slow growth of retail trade in the period for the fact that local consumers have curbed their spending due to price fluctuations in the consumer market and other services such petroleum, health-care and school fees. 

Retail sales of goods, which accounted for more than three fourths of the total sales, reached 90.2 billion USD from January to September, up 9.7 percent against last year’s corresponding period with several sectors recording a positive revenue increase including food and foodstuffs (up 13.2 percent); home appliances (up 10.1 percent) and textile and garments (up 9.5 percent) and transport services (up 7.6 percent). 

Meanwhile, retail sales in accommodation, restaurant and catering services, which accounted for 10 percent of the total, posted a revenue of 13.64 billion USD, a yearly rise of 8.3 percent. 

Some localities recording an encouraging retail revenue growth included Bac Giang, Lang Son and Hanoi while several others witnessed a sale reduction such as Hoa Binh, Ha Tinh, Phu Tho, Nghe An and Lai Chau. 

The country’s retail turnover is expected to rise to 179 billion USD by 2020, the Association of Vietnam Retailers (AVR) has forecast. 

According to AVR, the sector’s huge potential has attracted a lot of local and foreign investors, especially in HCM City, the country’s economic hub.

PM suggests hi-tech and organic farming for national agriculture

Prime Minister Nguyen Xuan Phuc said high-technology and organic farming would be crucial for the development of Vietnamese agriculture when touring Vingroup’s high-technology agricultural project in Tam Da commune, northern Hai Phong city on October 5.

The 189 billion VND Hai Phong project is among 12 farms developed by Vingroup’s subsidiary VinEco across the country growing safe vegetables.

The farm, covering 46ha, including an open-air area of over 28 ha, and a glasshouse area of 10.7 ha, became operational early this year, growing 14 species of vegetables using no pesticides with an average output of 250 tonnes per month.

The PM praised the model for increasing labour productivity and supplying the market with safe products.

The leader also lauded the efficient coordination between the company and local farmers, suggesting that it should be stepped up during rural area construction.

He reminded project insiders to observe their commitments, especially those pertaining to food safety, to ensure the quality of products.

VinEco should provide employment opportunities for those people who were relocated for the project to enable them to earn substantial, stable incomes, the PM noted.

VinEco said it will grow vegetables and plants suitable with conditions in Hai Phong for local consumption and export.

Singapore urged to increase investment in HCM City

Ho Chi Minh City hopes Singapore will conduct more investment and cooperation projects in the city.

Secretary of the municipal Party Committee Dinh La Thang made the remark at his reception for new Singaporean Ambassador to Vietnam Catherine Wong Siow Ping in the city on October 4.

He praised the relations between Singapore and Vietnam and particularly HCM City, which have developed widely.

Thang wished the new Ambassador would fulfill missions during her tenure to retain Singapore’s position as the third biggest investor in Vietnam and the largest in HCM City .

He said he hopes Singapore will continue to share its development experience with the city and affirmed local authorities will further improve the business environment for foreign investors, including those from Singapore.

Room remains for wood product export growth

Vietnam can export more wood products if it enhances professionalism and the quality of products, according to industry insiders. 

Figures released at a conference on the wood-processing industry held in Hanoi on October 4 revealed Vietnam’s wood products have been exported to 120 countries and territories. 

Wood exports to big markets like the United States, Japan and the Republic of Korea have maintained relatively high growth, with the US importing the most at over two billion USD. 

According to Nguyen Ton Quyen, deputy chairman of the Vietnam Timber and Forest Product Association (Viforest), with a growth rate of 15-20 percent each year, the sector’s future remains bright as Vietnam signs more trade agreements. 

To Xuan Phuc, from Forest Trends, said the US and Japan are members of the Trans-Pacific Partnership, providing opportunities for Vietnam to export wood products to markets when the agreement comes into force.-

PM approve projects with Japanese and Korean finance

The Prime Minister has approved an investment plan for a technical cooperation project sponsored by non-refundable aid from the Japanese government. 

The project aims to boost capability in cost estimates, and the management of contract, quality, and safety in construction projects. 

It will focus on improving regulations on management of public construction projects in Vietnam in line with international criteria. 

The project also helps perfect policies and mechanisms in the construction field under international criteria, boost capability of relevant subjects on cost estimates, contract management, construction capability and project management. 

It also aims to boost capability of identifying necessary works related to the management of construction safety, integration in quality management and safety management in cost estimates in construction, construction contract management. 

The project will be implemented in three years with more than 71 billion VND (3.16 million USD) in non-refundable aid from the Japanese government. 

In other news, the Prime Minister has agreed with the recommendation using official development assistance capital from the Republic of Korean Government’s Economic Development Cooperation Fund (EDCF) for a railway project. 

The PM assigned the Ministry of Transport to build a report on the recommendation of upgrading the Hoa Duyet – Thanh Luyen section of the Hanoi-HCM City railway route and the project on improving the safety of bridges on the Hanoi-HCM City railway route and submit it for approval.-

HCM City speeds up low-income housing investment

The HCM City Department of Construction plans to speed up the granting of investment licenses for social housing projects and redress administrative procedures to provide housing to low-income residents.

Social housing is built to accommodate the poor, near-poor, State staff, and people who have been recognised as making a great contribution to the country’s revolutions.

Speaking at a forum held in HCM City on early this week, Tran Trong Tuan, director of the Department of Construction, said a one-stop policy will begin in October to ensure faster granting of licenses to investors.

Investors will only have to apply for licenses at one agency, the Department of Construction.

From 2006 to 2015, the People’s Committee approved 51 social housing (low-income) projects with a total of 48,000 apartments, according to the department.

Of the projects, only 12 projects with 3,800 apartments have been completed.

Slow progress was caused by the lack of preferential policies and shortage of State budget and land funds for social housing projects.

The State supports loans and other preferential treatments for social housing but administrative procedures are complicated. In addition, investors’ profits from such housing cannot exceed 10 percent of investment capital.

Truong Anh Tuan, general director of the Hoang Quan Consulting Trading Service Real Estate Joint-Stock Company, said that his company had spent two years to complete procedures to invest in a social housing project in District 2. He said other provinces required only a few days.

Le Huu Nghia, director of the Le Thanh Company Limited, said many low-income people live in 10-sq.m rooms that have monthly rental of 1.2 - 1.5 million VND (55-68 USD).

He said the city administration should invest in social housing for rent instead of for selling.

Le Hoang Chau, chairman of the city’s Real Estate Association, agreed, saying that the building of social housing for rent would better meet the city’s situation.

Tuan, director of the Department of Construction, said research on the proposals would be conducted and submitted to the People’s Committee.

About 480,000 families (who are legally registered to live in the city) do not own housing, according to the Department of Construction. This does not count the number of migrants who are not legally registered with an official red book in the city.

“The Department of Construction plans to build an additional 39 social housing projects with 44,700 apartments in the next five years. Of the apartments, 30,000 will be completed by 2020,” Tuan said.

To meet the target, the department has asked district people’s committees to review their land funds and allocate land for construction of social housing.

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