Vietnam Public Commercial Joint Stock Bank makes its debut

The State Bank of Vietnam’s Deputy Governor Dang Thanh Binh granted a license to the Vietnam Public Commercial Joint Stock Bank (PVcom Bank) in Hanoi on October 3.

The PVcomBank was established following the merger of the PetroVietnam Finance Joint Stock Corporation (PVFC) and the Western Commercial Joint Stock Bank.

PVcomBank has total assets of over VND9,000 billion with a charter capital of over VND100,000 billion.

PVcomBank aims to provide services such as mobilization of capital, payment and development of retail services, allocation of capital to major projects, foreign exchange services in both local and international market. It has a network of 102 transaction branches throughout the country.

SBV Deputy Governor Dang Thanh Binh expressed his wish that with the advantages of two large-scale credit organizations and modern financial management technologies, PVcomBank will become one of Vietnam’s largest trading banks.

SBV is committed to creating the most favorable conditions for PVcomBank to operate stably and effectively in the future.

Dutch funding advances Vietnam’s biology-based economy

The Dutch organization BE-Basic has allocated a 3.05 million Euro grant to helping three Vietnamese projects on agricultural waste treatment, the environment, and bio-products over the 2013–2014 period.

Vietnam Academy of Science and Technology (VAST) Deputy Head Professor Nguyen Dinh Cong told an October 3 seminar Vietnam is rich in biological resources and should take advantage of its marine environment.

The Dutch-funded projects are expected to help Vietnam develop its biology-based economy through technology transfers and expert exchanges, he said.

According to Prof. Cong, the VAST proposed building a biology-based economy development strategy to the Government in 2009.

This funding is a breakthrough that needs to be consolidated by sufficient preparation and foreign consultation.

BE-Basic is a private-public organisation sourcing half of its budget from the Dutch Government and investors. It is seeking international partners in countries including Brazil, Malaysia, and Vietnam.

Int’l Furniture & Handicraft Fair welcomes 100 businesses

More than 100 businesses have showcased their products at the 2013 HCM City International Furniture and Handicraft Fair (HCMC EXPO 2013) on October 3.

The fair’s 240 pavilions displayed timber products and rattan and bamboo household and interior design pieces from leading businesses such as Huu Hanh Handicraft Embroideries Co, Ltd, Dai Hong Phat Ceramics, and Dong Tam Pottery Fine Arts Export PTE.

Deputy Industry and Trade Minister Tran Tuan Anh said HCMC EXPO 2013 is important to the development of Vietnam’s wood and handicraft enterprises.

The sector has significantly contributed to national exports by improving product quality and designs

The fair offers businesses valuable promotional space and the chance to explore potential markets while consolidating relationships with domestic customers.

HCM City Department of Industry and Trade Deputy Director Le Van Khoa, a member of the fair’s organising board, said the event focuses on cultivating industry trademarks and the reputation of the sector as a whole.  

Exports to UK market surge 34%

Vietnam Customs estimates national exports to the UK earned US$2.47 billion after eight months of 2013, representing a year-on-year increase of 34 percent.

Key export commodities including telephones and electronic spare parts, reached more than US$871.3 million, accounting for over 30 percent of Vietnam’s total UK export revenue in the reviewed period.

Vietnam’s UK exports earned US$384.3 million in August alone.

Footwear exports were valued at US$358.5 million (up 7.5 percent), with garment and textile exports reaping US$307.8 million (up 2.7percent).

Despite having yet to break into the five most lucrative UK export commodities, Vietnam’s promising transport vehicle exports grew a remarkable 1596.4 percent to earn US$63.4 million.

EFTA bloc presents farm export opportunities

Vietnamese agricultural and seafood businesses will enjoy a wealth of export expansion opportunities provided they abide by the European Free Trade Association’s (EFTA) sanitary and phytosanitary (SPS) standards.

Tran Trung Thuc, chief Vietnamese negotiator for the Vietnam-EFTA Free Trade Agreement, introduced these opportunities at an October 3 seminar in HCM City.

The Vietnam Chamber of Commerce and Industry and the Ministry of Agriculture and Rural Development convened the seminar to raise industry awareness regarding EFTA sanitary and phytosanitary (SPS) regulations.

Thuc believes that despite its comparatively smaller size, the EFTA’s four Swiss, Norwegian, Icelandic, and Liechtensteinian comprise a dynamic bloc rich in potential.

Vietnam and the EFTA bloc agreed to advance their economic cooperation by beginning Free Trade Agreement (FTA) negotiations in 2009.

The two parties have conducted five rounds of negotiations so far, making progress on an FTA covering trade in goods and services and transnational investment.

The HCM City seminar will help the Vietnamese delegation learn more about what domestic businesses would like to see from the next round of negotiations.

Thuc says that along with tariff reductions, according with SPS requirements is essential to opening doors for Vietnamese agricultural and seafood exports to the EFTA and the EU markets.

Deputy Norwegian Ambassador to Vietnam Larissa Falkenberg Kosanovic said SPS measures were devised to ensure safe animal and plant products and protect consumer health.

The EFTA bloc has signed FTA agreements with 36 countries and presents Vietnam with a valuable opportunity to expand its international customer base, she said.

Overseas remittances expected to increase: WB

World Bank forecast Vietnam's overseas remittances attraction this year would hit 11 billion USD, bringing the country to the 9th position in top 10 countries in the world.

Vietnam's overseas remittances reached 10 billion USD last year, rising by 10 percent over the previous year.

A large proportion of the total originated from the more than 4 million Vietnamese expatriates and approximately 400,000 guest workers in Japan, the Republic of Korea, Malaysia, China’s Taiwan, and the Middle East.

India, China and the Philippines were the three largest countries in the list with 71 billion USD, 60 billion USD and 26 billion USD. Mexico followed with 22 billion USD, Nigeria and Egypt 21 billion USD and 20 billion USD respectively.

India and China accounted for one-third of the total overseas remittances poured in developing countries this year.

World Bank said the world's total overseas remittances including those poured in high-income countries this year was estimated to reach 540 billion USD and jump to the record level of 707 billion USD by 2016.

Of the total, remittances sent to developing countries would increase 6.4 percent to 414 billion USD this year and surpass 500 billion USD by 2016.

It added that total remittances into developing countries would surge in short term with average growth rate of 9 percent each year.

The World Bank's figures revealed changes in national classification. Some countries which received large portion of overseas remittances including Russia, Latvia and Uruguay have no longer been listed in the group of developing countries.

Costs for transfer remittances through formal channels were still high, making people prefer using informal ones. The average cost last year was 9 percent worldwide and remained unchanged. However, banks added some fees on the remittances up to five percent.

Small and medium-sized enterprises get competitive

A programme to help small and medium-sized enterprises enhance technologies and management to improve their competitiveness has been unveiled.

The programme beginning this month would be conducted by the Business Association of High-Quality Vietnamese Goods and the Ministry of Science and Technology.

The two would carry out annual studies of technology reform at SMEs, Vu Kim Hanh, chairwoman of the association, said.

They would organise seminars and communications programmes to provide businesses with more information about the Government's policies for developing science and technology and for SMEs, she said.

The programme is expected to help create close links between companies and the National Office of Intellectual Property, enabling the former to understand the importance of IP rights and the resolution of IP-related issues.

Technology fairs and exhibitions would be held to develop the technology market, and the two entities would help companies raise capital to enhance their technologies.

A club for innovative and creative businesses would be established to enable members to share their experiences and information about research and development, she said.

She warned that enterprises are set to face increasing competition because of the country's international integration, making the need for improving technology and management urgent.

Minister of Science and Technology Nguyen Quan said "enterprises are the centre of science and technology innovation in the country. They are also a place for application of advanced technology to improve production and efficiency for the sake of society." They would perish without innovation, he warned.

A survey by the Business Studies and Assistance Centre of more than 100 enterprises found that most of them considered research and innovation to develop new products a key factor in business development. But less than 20 percent of them actually had a research and development department, it found.-

Hue moves to develop grapefruit brand

The central province of Thua Thien Hue is working hard to develop the brand of its native Thanh Tra grapefruit in order to promote the trade name of the local specialty.

Thuy Bieu ward in the city of Hue is leading the drive to promote the fruit as its local People’s Committee has organised an annual grapefruit festival since 2010 to show-off the product to consumers nationwide and register it for a sole trademark in the domestic market.

To realise its goal, the province plans to apply the Vietnamese Good Agriculture Practices (VietGap) standard for grapefruit cultivation in Thuy Bieu ward.

The move aims to expand the grapefruit farming area, preserve valuable seeds and locate stable markets for the product.

Thua Thien Hue boasts an area of over 1,100 ha for grapefruit.-

More chances for agro-fisheries products in EFTA

Vietnamese agricultural product and seafood exporters will have more chances to expand their market as they well form regulations in the sanitary and phytosanitary systems (SPS) of the European Free Trade Association (EFTA).

Director General Tran Trung Thuc, head of the Vietnamese EFTA negotiating team was speaking at a seminar to introduce the SPS jointly held by the Ministry of Industry and Trade, the Vietnam Chamber of Commerce and Industry and the Ministry of Agriculture and Rural Development in Ho Chi Minh City on October 3.

According to Thuc, the EFTA is another trade area for non-EU countries in Europe, including Switzerland, Norway, Iceland and Liechtenstein.

This is a dynamic economic bloc with Switzerland and Norway being potential markets for Vietnam’s exports, he said.

In 2009, leaders of Vietnam and the EFTA agreed to raise their economic ties by launching negotiations of a bilateral free trade agreement. The two sides have conducted five rounds of negotiation of the agreement, which covers trade in goods and services, investment and other issues of mutual concern.

To expand export market, apart from negotiations on tariff reductions, those relating to the SPS play an important role in facilitating the exports of Vietnamese agricultural products and seafood in the EFTA in particular and European countries in general, Thuc said.

Deputy Ambassador of the Norwegian Embassy Larissa Falkenberg Kosanovic said SPS measures are to ensure safe animal and plant products and protect consumer health.

The EFTA has signed FTAs with 36 countries and this is a good chance for Vietnam to expand its market, she added.

Coastal Phu Yen invests in tourism infrastructure

Endowed with bountiful natural resources which underpin the development of tourism, a key sector set to spearhead the provincial growth plans, Phu Yen has begun to make a name for itself both in Vietnam and internationally. Report by the Vietnam Economic News.

As a coastal province in south central of Vietnam, Phu Yen is well known for tourism destinations such as Giant's causeway, O Loan and Cu Mong lagoons, Nhan mountain, Vung Ro port, Xuan Dai gulf, and Dai Lanh lighthouse.

It is is considered a land of great potential for tourism industry development and is moving forwards to becoming one of the most attractive destinations in the country with a series of infrastructure projects under construction.

Phu Yen province’s People’s Committee announced two local tours in August including the Tuy Hoa - An Tho citadel - Giant's causeway - Nhan tower tour and Tuy Hoa - Mon beach - Dien cape - Vung Ro port - Nhan tower tour.

In order to create favorable conditions for transporting tourists to these destinations and to promote the local tourism development, a series of infrastructure projects were inaugurated and put into operation in August, including the Tuy Hoa airport, Hung Vuong bridge (linking Tuy Hoa with coastal communes) and An Hai bridge (over the O Loan lagoon).

These infrastructure projects marked a turning point in attracting investment into Phu Yen’s tourism, a spearhead economic sector.

An Hai bridge is 25km to the north of Tuy Hoa city and 10km to the south of the Giant's causeway. It is 173m in length, 8m in width, able to accept 30-tonne payload vehicles, comprising of two 650m-long paths. The bridge acts as an artery linking the coastal lines with Highway 1.

According to Chairman of Phu Yen province’s People’s Committee Pham Dinh Cu, located in a strategic position, An Hai bridge will work as an important link connecting the coastal tourism destinations of Ca pass, Vung Ro port, Tuy Hoa airport, Long Thuy beach and Giant's causeway.

The bridge serves for the purpose of tourism development and local transport as well for people in communes of An Hai and An Ninh Dong that are often isolated during the flood season.

“Previously, people in the two communes of An Hai and An Ninh Dong must travel to visit each other by boat or ferry. Now, they can do it any time they want thanks to An Hai bridge. In addition, local tourism industry is also promoted,” Chairman of Tuy An district’s People’ Committee Nguyen Phung Ngoan said.-

Eight banks lend VND1.13 trillion to city enterprises

Eight banks on Tuesday signed contracts to lend VND1.13 trillion to 36 enterprises and two household businesses in districts 7, 4 and 2 in HCMC.

The credit contracts, arranged under the city’s bank-business connectivity program, were signed between Sacombank, Agribank, VietinBank, ACB, HDBank, DongABank, ABBank, and Eximbank, and these corporate borrowers.

The borrowers enjoy a preferential lending rate of a maximum 9% per year, said Nguyen Hoang Minh, deputy director of the central bank’s HCMC branch. VND636.8 billion goes to enterprises in District 7, VND406.3 billion to those in District 4, and VND88.8 billion to those in District 2.

Minh said up to date, the central bank’s HCMC branch had helped expand the program to 22 out of 24 districts in the city, with the total credits put at VND9.8 trillion. Beneficiaries are 492 enterprises and 67 household businesses.

The next signing ceremony is expected to take place this year between banks and enterprises in the remaining two districts, 1 and 3. Minh said 40% of the committed loans had been disbursed to clients under the program.

AIA Vietnam uses iPoS for insurance transactions

AIA (Vietnam) Life Insurance Company Ltd. on Tuesday launched the interactive Point of Sales system iPoS, an electronic system running on iPad, for its agents to facilitate life insurance transactions.

AIA expects the application of this technology can change the life insurance sales process of agents in Vietnam.

With iPoS, all agents of AIA will be equipped with iPad installed with iPoS. All the tasks of getting customers’ information, illustrating benefits of products, completing application forms and submitting all documents to the company will be done electronically on iPad.

AIA agents can work anywhere at anytime even when iPad does not have Internet access. Besides, they can sign contracts with customers within 24 hours, which was impossible before.

iPoS has also been employed in other markets in the Asia-Pacific region and the version compatible with Android operating system will come out in the near future.

With over 5,000 employees and over 14,000 agents nationwide, AIA Vietnam currently has over 320,000 insurance contracts.

In the year’s first half, AIA Vietnam paid insurance benefits to over 190,000 policy holders with a total amount of nearly VND1.3 trillion.

Sept PMI shows signs of improvement

SBC Bank has released the Purchasing Managers’ Index (PMI) of the local manufacturing sector which stayed at over 50 in September, indicating positive signals on the health of the sector.

“PMI registered more than 50 for the first time in five months. And new orders and export contracts and employment posted an all-time high in the survey history,” says the survey result announced by HSBC on Tuesday.

The headline seasonally-adjusted index rose back above the 50 no-change mark to stand at 51.5 during last month, an improvement on the 49.4 in August and the best reading since April 2011, the first month when the survey data was launched.

With the survey, HSBC found out that the PMI growth was driven by an outstanding gain in new orders and employment at home, reflecting improvements in basic demand from local and foreign customers.

New export business also marked up at a record pace, with September being the first month in four months seeing an increase in new export revenues.

As per HSBC’s report, inventories of finished products picked up slightly in September while manufacturers were able to increase inventories, reduce backlogs of work and respond to soaring new orders while maintaining the stability of output in general.

“While we expect output to pick up in this year’s second half thanks to an expected recovery in the Eurozone, China, the U.S. and Japan, internal demand is still lackluster. While prices rose in the third quarter, we expect inflationary pressures to remain contained,” Trinh Nguyen, Asia economist at HSBC, commented on the survey.

Thai investors eye Vietnam stocks

Thirty-five investors from Thailand are in Vietnam to learn about local enterprises and seek investment opportunities as the Government will increase the foreign ownership limit in listed enterprises in the future.

Kim Thien Quang, director of individual client unit of Maybank Kim Eng Vietnam Securities Company, said the investors have information on profitable local enterprises but foreign ownership room there is full. However, the Government’s foreign ownership cap increase scheme has drawn their attention.

The investors have visited some large enterprises such as Vinamilk and PetroVietnam Fertilizer and Chemicals Corporation, and sought information of PetroVietnam Drilling & Well Service Corporation and Ba Ria-Vung Tau House Development Joint Stock Company (Hodeco).

During’s Hodeco introduction ceremony at the head office of Maybank Kim Eng Vietnam Securities Company on Tuesday, the investors asked for information on the enterprise’s projects, market capitalization and share prices.

An investor of Maybank Kim Eng Thailand Company told the Daily that Hodeco with the stock code of HDC is a potential ticker thanks to feasible projects. However, he was concerned about low liquidity of the stock with only 10,000 shares changing hands each session.

The local stock market is rather small, so investors should focus on large caps only, the investor said.

In the near future, Maybank Kim Eng Vietnam will invite more investors from Southeast Asian countries to Vietnam to learn about investment opportunities, Quang added.

Ha Giang reviews one-year cooperation with China’s locality

The northern province of Ha Giang on October 2 held a conference to review one year of the implementation of its 2012-2015 cooperation programme with Wenshan county of China’s Yunnan province.

Permanent Vice Chairman of the Ha Giang provincial People’s Committee Nguyen Van Son said the cooperation programme has gained many encouraging results which create mutual trust, and foster the practical and effective cooperation between the two localities in all fields.

To deepen their cooperation, in the time to come, the two sides will focus on exchanging information to help each other achieve their socio-economic development goals, strengthening the connectivity and cooperation in trade and investment promotion.

Ha Giang will call for more investment and give priority to upgrading the infrastructure of the Thanh Thuy national border gate economic zone in Vi Xuyen district and the two provinces’ main and auxiliary border gate pairs.

Over the past one year, the two sides have also put forth many effective measures to boost their trade ties. Their two-way trade reached 352 million USD in 2012, a year-on-year increase of 23 percent. The figure surpassed 350 million USD in the first nine months of this year and is expected to reach 400 million USD in 2013.

New wood production systems bark up the right tree

Wood products in Vietnam may have achieved a high level output, but they have not improved economic efficiency. A project by northern Quang Ninh province to improve production lines for wooden planks may work to reverse this trend. The Vietnam Economic News reports.

According to the Quang Ninh Department of Natural Resources and Environment’s statistics, the province has about 136,954 hectares of planted forests. In the first six months of this year, the province planted 9,000 more hectares of planted forests. Logging areas span an average of two million cu.m per year.

Quang Ninh province’s Industry Promotion and Industrial Development Consultation Centre Deputy Director Hoang Duc Kha said that although the companies are turning out significant product volume, the production process lacks efficiency.

The demand for wooden planks is rising as furniture production continues to grow and the product quality is consistent, no termites or shrinkage as well as a diversity of aesthetics and features such as scratch resistance. Most furniture is actually made from planted timber, which is cheaper than natural wood products.

As part of this year’s industry promotion plans, Quang Ninh province’s Industry Promotion and Industrial Development Consultation Centre has actively supported wood processing enterprises in implementing new technologies, expanding production and diversifying products to most effectively exploit raw materials.

The centre collaborated with the Dong Trieu Construction Co., Ltd. to build a technical performance model for the production of wooden planks with a capacity of 1,650cu.m per year. The model had investment capital totaling 5 billion VND. With the support of a local industry promotion budget of 200 million VND, the company invested in expanding its production facilities and constructing warehouses. In addition, the company also invested in automatic production lines and other state-of-the-art machinery.

The company reported that once started, the production model will consume approximately 6,000cu.m of planted timber per year and help the company reach revenues of over 15.675 billion VND per annum. The model will also create 13 new jobs, bringing the total number of employees working in the company to 40.

Industry Promotion and Industrial Development Consultation Centre Deputy Director Hoang Duc Kha said that a technical performance model for production line for wooden planks had engaged the interest of wood processing enterprises in the province.

The centre also supported the Quang Ninh Forest Product Processing JSC in investing in an improved production line with a capacity of 1,500cu.m per year.

The Quang Ninh Forest Product Processing JSC Director Tran Thi Lan said that with the support of the local industry promotion budget, the company was able to buy highly-rated Japanese technologies.

The model was completed and tested. The company reported that the new tech could help them reach revenues of 21.75 billion VND per year as well as create 57 new jobs earning roughly 3.5 million VND per month apiece.

Khanh Hoa approves seafood purchasing project with Chinese company

The central province of Khanh Hoa has approved a cooperation project on purchasing and transporting fresh seafood for export between the local Phuc Minh Fisheries Ltd Co. and Long Faw Company of China.

The project, which will last until 2016, aims to ensure stable income for fishermen as well as minimise losses during the process of purchasing and transporting.

The Nha Trang-based Phuc Minh Fisheries Co., Ltd. will be responsible for the purchasing of seafood, while Long Faw’s ship, the Yue Dian Bai 8366 will be allowed to enter Van Phong and Cam Rang ports in Khanh Hoa to load products for transport under the project.

The General Fisheries Department under the Ministry of Agriculture and Rural Development has granted a one-year licence of operation to the Yue Dian Bai 8366 as from September this year.-

The Vietnam Asset Management Company (VAMC) has taken first steps towards addressing the banking system’s non-performing loan (NPL) problem to support economic recovery efforts.

VAMC on October 1 signed a contract to buy VND2,450 billion in NPLs from the Bank for Agriculture and Rural Development (Agribank).

VAMC Vice Chairman Nguyen Quoc Hung said Agribank has been selected for it is a big credit organisation operating in agriculture and rural development – a key economic sector.

Agribank is the first Vietnamese credit organisation to sell their NPLs to VAMC

“The most important thing is Agribank is keen to restructure its loans,” said Hung. “It has already built up loan loss provisions to cushion the bank’s balance sheets, which is one of our criteria for selection.”

The fact is that several credit organisations do not want to sell their NPLs to VAMC for fear the move will affect their operations. They do not know how to plan provisions and to refinance their loans at the central bank.

The State Bank of Vietnam (SBV) and VAMC jointly hosted two conferences in Hanoi and HCM City to give instructions on NPL settlement.

As a result, VAMC has so far received requests from more than 10 credit organisations of which four have a NPL ratio of less than 3%.

A recent SBV document only requires commercial banks with a NLP rate of more than 3% to sell their debts to VAMC.

After Agribank, VAMC is scheduled to sign similar contracts with the Saigon Commercial Bank (SCB), Saigon-Hanoi Commercial Joint Stock Bank (SHB) and Petrolimex Group Commercial Joint Stock Bank (PG Bank) this week.

“We aim to buy VND30,000 worth of NPLs and issue between VND30,000-35,000 billion worth of special bonds by the end this year to support banks,” said Hung.

To ease banks’ difficulties, the central bank plans to offer a minimum interest rate of 2% for their bonds instead of the 7% refinancing rate at present. Banks can use the bonds to refinance their loans at the central bank.

The rate proposal has been submitted to the Prime Minister for approval.

VAMC’s NPL settlement could kill three birds with one stone, said Hung, explaining businesses are able to take out new loans, the banking system will become healthier, and the economy will be stimulated.

After selling their debts, credit organisations have the chance to restructure themselves to secure safe operations and improve liquidity. They can use VAMC bonds to refinance 70% of their loans at the central bank to assist businesses.

An important thing is that credit organisations’ NPL ratio will fall, helping increase their trust locally and globally.

Businesses that default on their payments also benefit from the NPL settlement.  They will also have the chance to restructure operations, pay off debts, enjoy reduced interest rates, and access new loans.

In the face of the stagnant real estate market, the move will prevent developers from piling it high and selling it cheap. This means both businesses and banks still hold capital assets to maintain operations.

In an Asian Development Outlook Update released in Hanoi on October 2, the Asian Development Bank described the establishment of VAMC as ‘positive, saying progress in NPL resolution will result in increased flows to productive sectors of the economy.

Innovation key to agriculture

A more effective application of science and technology development in agriculture is seen as a key factor in the restructuring of this crucial sector, according to experts.

Minister of Agriculture and Rural Development Cao Duc Phat commented at a recent development workshop that the country's agricultural restructure master plan must embrace science and technology to ensure a higher level of efficiency.

Since 2008, the State has spent more than VND2.1 trillion (US$100 million) implementing projects to build laboratories which can aid research and technology transfer to the sector's operations. It has helped to put hundreds of high-yield varieties of crops and domestic animals into production.

However, the National Assembly Committee for Science and Technology and Environment assessed that more still must be done to meet the demand of agricultural development.

The committee's Chairman Phan Xuan Dung said the existing science and technology management mechanism was not good at enforcing theory into practice.

In fact, the agricultural sector remains small-scale in its production capacity and the rate of science and technology used in farm production is still low, he said.

A "brain-drain" of human resources in the field of science and technology has increased due to the lack of preferential policies for researchers, he added.

National Assembly Chairman Nguyen Sinh Hung declared that the country's agricultural sector had yet to live up to its potential, citing the low competitive edge of agricultural products as an example.

He was speaking on the issue at last week's national conference reviewing the use of science and technology in agricultural development.

He argued that the adoption of more advanced science and technology would play a vital role in rectifying this situation.

He said that scientists should take responsibility for doing research repairing and improving the quality of agricultural production, building rural areas and improving farmers' living conditions.

Deputy Minister of Agriculture and Rural Development Le Quoc Doanh also stated that slow renovation of technology meant that many traditional agricultural products of Viet Nam were of low quality with high cost, making them uncompetitive in the market.

Particularly, production and preservation technology for some kinds of agricultural products were ineffective, making them lag behind their competitors from other countries.

Minister of Science and Technology Nguyen Quan said it was essential to promote scientific research specific to farming and to ensure copyright laws are in place for new varieties of crops or domestic animals.

At present, investment in agriculture meets only 60 per cent of the real demand and preferential policies encouraging businesses to invest in the sector have not been effective enough.

Under the master plan on restructuring the sector towards increasing added value and sustainable development during the 2011-20 period, science and technology research and human resources training will be promoted with the participation of all economic sectors, particularly non-State businesses.

Phat said a supervision and assessment system would be completed to promptly put scientific and technological research into practice.

The ministry would support farmers in getting access to research services as well as advanced techniques while developing models of vocational training for farmers teaching them how to implement the technology, he said, adding that the required investment would come from more varied sources.

The master plan aims for the country to achieve an annual GDP growth rate for the agricultural sector of between 2.6-3 per cent per year during 2011-15 and 3.5-4 per cent during 2016-20.

The other targets are to improve the income and living standards for rural people, ensure food security and reduce poverty.

Head of the Ministry's Planning Department Nguyen Thi Hong said one key measure to help effectively restructure the economy was to encourage more private investment in agricultural development.

Apart from policies issued by the Government, localities should have their own initiatives to draw more investment in the sector in line with their socio-economic conditions, she said.

Up to 70 per cent of Viet Nam's population lives in rural areas, making up 20 per cent of the country's GDP and 30 per cent of its total export value.

Small firms get competitive

A programme to help small and medium-sized enterprises enhance technologies and management to improve their competitiveness has been unveiled.

The programme beginning this month would be conducted by the Business Association of High-Quality Vietnamese Goods and the Ministry of Science and Technology.

The two would carry out annual studies of technology reform at SMEs, Vu Kim Hanh, chairwoman of the association, said.

They would organise seminars and communications programmes to provide businesses with more information about the Government's policies for developing science and technology and for SMEs, she said.

The programme is expected to help create close links between companies and the National Office of Intellectual Property, enabling the former to understand the importance of IP rights and the resolution of IP-related issues.

Technology fairs and exhibitions would be held to develop the technology market, and the two entities would help companies raise capital to enhance their technologies.

A club for innovative and creative businesses would be established to enable members to share their experiences and information about research and development, she said.

She warned that enterprises are set to face increasing competition because of the country's international integration, making the need for improving technology and management urgent.

Minister of Science and Technology Nguyen Quan said "enterprises are the centre of science and technology innovation in the country.

"They are also a place for application of advanced technology to improve production and efficiency for the sake of society."

They would perish without innovation, he warned.

A survey by the Business Studies and Assistance Centre of more than 100 enterprises found that most of them considered research and innovation to develop new products a key factor in business development.

But less than 20 per cent of them actually had a research and development department, it found.

Stake sell off to raise State funds

The Viet Nam Association of Financial Investors (VAFI) has advised the Government and the National Assembly to sell additional stakes in well-performing State enterprises and to offload more high-street real estate in order to immediately raise the State budget.

The proposal estimated that the sale of State holdings at State-owned and privatised enterprises like Mobifone, Viettel, Sai Gon Beer, Ha Noi Beer and Vinamilk would add approximately US$5 billion to the declining State budget.

The association added that Viet Nam had a big source of capital, albeit hard to utilise due to the long-lasting mismanagement at some State-run corporations.

VAFI said that such administrations were destroying the value of Viet Nam's assets.

"Management lessons provided by Vinashin and Vinalines, which the State had to pay roughly $7 billion to learn, definitely stand. If the Government stonewalls the sales, their asset values will collapse and they will have to make further borrowings to invest in the economy," VAFI General Secretary Nguyen Hoang Hai said.

Ha Noi and HCM City were urged to organise pioneering sales on high-street real estate to fund municipal traffic upgrades, such as city tram systems and anti-congestion measures. The estates samples include Daewoo, Rex, Caravell and Metropole Ha Noi.

In an attempt to raise more money, VAFI has proposed that the Government levy 20 per cent special consumption tax on the purchases of gold bars and gold jewellery. People and institutions will not have to pay tax for selling gold to the State Bank of Viet Nam at world price, however.

"This is the only single measure to end gold accumulation and dollarlisation. If the Ministry of Finance and the State Bank of Viet Nam take this measure, it will create an inflow of trillions of dong to the banking system and create forex stability. This measure will also help to bring interest rates for Vietnamese dong down to 3 per cent annually and to raise the State's foreign reserves to $60 billion," the proposal stated.

In addition, VAFI urged policy-makers to see the stock market as a capital source for the economy.

Cashew exports to rise despite shortage

Cashew export activities for local firms will increase by year end, but a lack of raw materials is expected to hamper export processing, said the Viet Nam Cashew Association (Vinacas).

The export surge is possibly resulted from high cashew demands on the world market, with prices jumping from an average of US$6,300 per tonne in the first two quarters of this year to $7,600 in August, said Nguyen Thai Hoc, the Dong Nai Cashew Association chairman.

From October of this year until March 2014, exports should have more advantage due to higher prices in the second and third quarters of this year, Hoc said.

However, the most important thing at present is the limited local cashew supply and capital difficulties for enterprises, which caused cashew imports to increase 70 per cent over previous years, he said.

The Dong Nai Cashew Association warned its member companies to prepare a larger stock of raw cashew for export processing until March 2014 because local supply can only meet 50 per cent of demand, or 130,000-150,000 tonnes.

Donafoods, a farm produce export company and a member of the Dong Nai Cashew Association, has been negotiating to have 70,000-80,000 tonnes of imported raw cashew from Africa processed by other member companies of the association, Hoc said.

The Ministry of Agriculture and Rural Development said that Viet Nam's cashew exports gained a 16.5 per cent rise in volume to 188,000 tonnes year-on-year, and a 9.3 per cent rise in value to $1.19 billion in the first nine months of this year, which includes 21,000 tonnes, earning $134 million in September.

During the first nine months, the US, China and the Netherlands were the three largest Vietnamese cashew importers in the world, accounting for 34.4 per cent, 16.6 per cent and 10.4 per cent of total export value, respectively.

Viet Nam expects to gain a total cashew export figure of $1.5 billion this year.

To reach the target, local firms should maintain traditional markets such as the US, China, European countries and Australia while expanding to to the Middle East, North Asian and ASEAN countries at the same time, said the Vinacas.

Vietnam urged to revamp outlook on agriculture

While the demand for vegetables, fruits and dairy increase recently compared to grains, Vietnam has been urged to map out new agricultural strategies to keep up with these new market trends.

The issue was top on agenda at the forum “Strengthening agricultural productivity and supply chains in Vietnam”, which was co-organised on October 3 in Hanoi by the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD)’s Centre for Agricultural Policy, the ADB Institute and the French Development Agency (AFD).

Speaking at the forum, Tin Htut Oo, Chairman of National Economic and Social Advisory Council of Myanmar, said that after the world food crisis in the 2007-2008 period, more countries became aware of the importance of agricultural production in the national economy and started to strengthen food production, and the food supply in the world has significantly increased.

He added, however, that in recent years, as several economies have gradually rebounded, living standards have improved and more people are migrating to urban areas.

“This has forced agriculture to adapt. Previously Vietnam focused on enhancing productivity but now food security is no longer a major domestic concern. It’s necessary to develop its agriculture into a commercial business so as to increase farmers’ incomes and value chains,” he recommended.

According to the Vietnamese Academy of Agricultural Science, the country should continue to maintain rice production along with expanding cultivation of industrial plants like rubber, coffee, tea and pepper, as well as growing more vegetables, fruits and flowers.

“Agricultural restructuring should aim at enhancing productivity by selecting new rice crops that give higher yields and better quality. Some rice cultivation areas should be used for the cultivation of maize to serve domestic animal feed production as well as growing soybean and other crops,” they suggested.

Lan Huong, a policy official from United Nations Food and Agriculture Organisation (FAO) in Vietnam said the restructuring should ensure more benefits for farmers as well as help maintain Vietnam’s status in the world’s farm produce markets.

She emphasised the necessity of of identifying key crops and animals so as to develop sustainable supply chains.

Nao Ikemoto, ADB, Senior Environment Specialist, said foreign direct investment in Vietnam’s agriculture is currently modest and now is a good time to try to boost private investment in the industry. The government’s investment in agriculture should also switch from irrigation infrastructure to research and development and agricultural promotion so as to increase production values and enhance its competitiveness. More attention should be paid to food safety and hygiene as well as environmental protection during the process, he said.

Apart from strengthening agricultural productivity, it is important to enhance supply chains.

“Consumers now tend to prefer clean, environmentally-friendly and value-added products, so supply chains that meet these elements would be more likely to be successful and those which take part in such chains would benefit,” Nguyen Do Anh Tuan, IPSARD Deputy Director said.

According to Tuan, Vietnam should switch from increasing production to creating more benefits for farmers so as to encourage them to produce more valuable products.

“At present, Vietnam’s produce is facing fierce competition as the country still lacks professional agricultural supply chains. In the time to come, public-private partnerships should be encouraged so as to intensify cooperation between farmers and enterprises and foster development of standards, science and technology and trademark. Farmers would benefit from this,” Son added.

Michelin launches road safety programme

France’s Michelin, one of the largest tyre manufacturers in the world, has announced its fourth annual tyre safety campaign to expand its reach among consumers and promote road safety in Vietnam.

The one-month campaign will start October 10 and run for a month. It will be located in major supermarkets, shopping centres, and plazas in major cities throughout the country.

The campaign aims to help drivers improve their road skills and remind them of their responsibilities to themselves and other commuters as well as educating them on good tyre care.

In 2011, the FIA (Federation Internationale de l’Automobile headquartered in Paris) launched the Action for Road Safety campaign in support of a United Nations’ decade-long programme supporting the same. The same year, Michelin signed a partnership agreement with FIA that broadened the federation campaign’s reach and mobilised Michelin’s resources throughout the world.

In support of the programme, the company’s press release said “Tyres need to deliver optimal performance on all fronts, from durability and versatility to safety, consistency, and performance. This is the driving force behind the Michelin Total Performance Strategy.”

Established in 1889 in France, Michelin designs, manufactures and sells tyres for nearly every type of vehicle imaginable. The company employs 113,400 people, has sales organisations in more than 170 countries, and 69 production centres spanning five continents. The company also produces travel guides and maps.

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