PM pushes for stronger economic restructuring

Vietnam will go ahead with intensifying economic restructuring and encouraging scientific and technological advances to improve the efficiency and competitiveness of the national economy.

Prime Minister Nguyen Tan Dung was speaking at the Vietnam Development Partnership Forum (VDPF) in Hanoi on December 5 to review the country’s socio-economic performance and poverty reduction over the year.

Economic restructuring will be focused on public investment by effectively implementing the Law on Public Investment, working out medium-term investment plans and better distribution of central and local resources for economic development, Dung said.

He prioritized the need to increase the efficiency of public finance and investment, mobilise capital for key projects, promote private and foreign investment attraction, and offer favourable conditions for foreign businesses to approach and effectively use resources and natural resources.

Regarding the banks and financial market, the government leader said all credit organizations will be comprehensively restructured with a focus on weak joint stock commercial banks. In addition, State owned commercial banks will continue to be equitized.

It is imperative to supervise and inspect the banking system, deal with overlapped ownership and bad debts and increase the Vietnam Asset Management Company’s (VAMC) operational efficiency, Dung said

The banking sector is set to handle VND100-150,000 billion worth of bad debts in 2014.

On State-owned enterprise restructuring, PM Dung emphasized next year will be pivoted on equitizing and restructuring key business sectors, reducing investment capital for sectors beyond their business based on market rules and improve administration capacity and business efficiency.

As many as 500 state-run enterprises will be equitized including one in eighth of economic groups.

Shares of 4/5 equitized State commercial banks will be sold to provide springboards for finalizing equitization by 2020.

PM Dung also stressed the necessary restructuring of agriculture along with development of new rural areas, boosting agricultural production and improving people’s living standards.

In his earlier speech on economic restructuring before development partners, the PM highlighted initial results from the process which will continue to be boosted in the future.

Accordingly, Vietnam allocated capital to key projects and counterpart capital for ODA-funded projects in the 2011-2013 period and carried out medium-term investment plans and increased responsibility for investment efficiency.

Soc Trang earns nearly US$481 mln from export

The Mekong Delta province of Soc Trang has recorded an export turnover of nearly US$481 million so far this year, increasing 14.63 percent over the same period last year.

According to the provincial Statistics Department, the results were due to success in seafood exports, which saw a 26.21 percent rise year on year to hit US$450.5 million.

However, exports of the agro-forestry sector were low at US$29.11 million, equivalent to just 41.6 percent of the set target and down 49 percent over the previous year, the department said.

A particularly sharp fall was seen in both export volume and value of rice by 60,000 tonnes and an average US$18 per tonne, the department added.

The reason behind the drop was the fierce competition from other strong exporters such as Thailand , India , Pakistan and the emerging exporters of Myanmar and Cambodia, it revealed.

Other currency earners from Soc Trang included mushrooms, eggs, fruit and machinery.

Canadian businesses seek to invest in Vietnam

The Vietnamese Government is willing to create favourable conditions for foreign investors, including those from Canada, to operate successfully in Vietnam , Deputy Prime Minister Vu Van Ninh has said.

The Deputy PM reiterated the statement during meetings with representatives from 30 leading Canadian businesses in Toronto on December 3 as part of his visit to Canada from December 2-4, which aimed to further forge all-around cooperation with the country.

He said in the framework of its open door and international economic integration policies, the Vietnamese Government always attaches importance to the legitimate benefit of foreign investors.

Ninh also briefed the enterprises on Vietnam ’s macroeconomic situation and reviewed the development of bilateral ties between the two countries.

Canadian participants said they are seeking to invest in several fields in Vietnam , such as oil and gas, transport infrastructure development, healthcare service, insurance, tourism and agriculture.

A number of Canadian enterprises affirmed that they will send delegations to Vietnam soon to deploy specific business projects.

At the meeting with President and Chief Executive Officer of the Toronto Centre Babak Abbaszadeh, Ninh stressed that the Vietnamese Government hopes to further develop cooperation with the centre in the future.

The two sides discussed feasible cooperation fields and pledged to work closely to build a specific partnership programme in the coming time.

Abbaszadeh underlined the important role played by the centre in consulting on financial management, while revealing its cooperation programme with many countries in the world, including Southeast Asian nations.

He said his centre appreciates Vietnam’s position in regional financial markets, affirming that it is ready to establish international-funded projects to support Vietnam in enhancing its capacity in controlling the market and preventing and managing financial risks.

In the afternoon, the Deputy PM had meetings with several intellectuals and overseas Vietnamese businessmen living and working in Toronto .

Ninh praised contributions to the homeland made by the Vietnamese community in the city, saying that overseas Vietnamese are an indispensable part of the Vietnamese nation. He called on them to promote unity to further contribute to the country’s socio-economic development.

SMEs urged to seize opportunities by FTAs

Vietnamese small and medium-sized enterprises (SMEs) are lacking information on ASEAN market opportunities of the Free Trade Agreements (FTAs).

This was revealed at aseminar in Hanoi on December 4 examining ways to help SMEs seize opportunities from ASEAN and ASEAN+ FTAs.

Delegates said the upcoming FTAs will put pressure on the trade of goods due toa  sharp fall in tariffs, in which 90% of taxation will be reduced by zero percent by 2015.

Many local export businesses have not taken full advantages of the tariff reduction of FTAs due to a lack of information on the ASEAN market, especially information on preferential tariffs on the added value of goods and services and technical barriers.

Cao Van Dung, Dung Giang Construction and Trading Company Director said that SMEs will face huge challenges, including competitive prices and large distribution networks of major foreign businesses, when penetrating new markets in the international integration process.

Attendees agreed that in order to breakthrough the dynamic ASEAN market effectively, local businesses should renovate and apply technological and scientific advancements to improve their product quality.

Companies need to prioritise low-income markets and develop sustainable trademarks to secure big contracts from foreign partners.

Vietnam Chamber of Commerce and Industry (VCCI) General Secretary Pham Thi Thu Hang pledge her organization’s best effort to help SMEs make the most of opportunities by FTAs, especially the participation in the ASEAN community.

(VCCI) Vice President Doan Duy Khuong said taking full advantage of the opportunities from the process will help ASEAN members to reform mechanism, policy and the business environment as well as attract more foreign investment and increase manufacturing capacity, he noted.

Andrew Holt, First Secretary - UK Foreign and Commonwealth Office emphasized the key role of SMEs in Vietnam’s economic reform, especially when it is facing economic difficulties.

Local businesses have yet to fully make use of tax incentives when doing business with partners within and outside the regional grouping.

The seminar gave Vietnamese SMEs a good chance to devise solutions to cope with challenges cause by the agreements, Holt said.

A series of int’l fairs and exhibitions open in HCM City

HCM City hosted the 11th Vietnam International Trade Fair (Vietnam Expo 2013) and the International Exhibition on Cycle, Motorcycle and Spare parts in Vietnam (InterCycle Vietnam 2013) on December 4.

Deputy Minister of Industry and Trade, Ho Thi Kim Thoa,described how Vietnam Expo 2013 serves as a crucial bridge in strengthening trade promotion activities between local and foreign businesses, especially in Asia.

The fair  attracted  investors and representatives from various sectors including equipment and machinery, agricultural and processing products, construction, electricity, electronics, information technology, tourism, interior design, handicrafts and fashion.

It provided a unique opportunity for Vietnamese businesses to approach the market and exchange advanced technological and scientific achievements, contributing to accelerated international economic integration.

Trade stands from India, Taiwan, Indonesia, Malaysia, the Republic and Korea and China showcased outstanding services and products by international trade promotion organizations.

On display at the InterCycle Vietnam 2013 were bicycles, electric bicycles, spare-parts and toy bicycles from well-known brand such as Giant, Merida, Weiel and Martion 107.

Another international exhibition was held in HCM City to advanced and modern equipment and machines from 180 worldwide businesses with a focus on Vietnam’s integration and sustainable development.

This specialized event helped local and international businesses boost investment, trade promotion, meeting the demands for machinery, equipment and advanced technologies for the country’s economic development towards green growth, safety, security and efficiency.

20th Vietnam Medi Pharm Expo 2013 opens in Hanoi

Over one hundred companies from 15 nations and territories worldwide gathered at the 20th Vietnam International Hospital, Medical and Pharmaceutical Exhibition (Vietnam Medi Pharm Expo 2013), which opened in Hanoi on December 4.

The event aims to provide an opportunity to introduce mechanical products and modern treatment techniques from advanced countries.

Pharmaceutical products, dietary supplements, packaging and processing machines, analytical and testing equipment, and medical equipment were all on display at over 150 trade stands.

This year in particular saw the introduction of the latest, specialised equipment used in minor surgery by Russian and RoK companies.

Vietnamese businesses will have the opportunity to learn about the pharmaceutical products and run them on a trial basis.

Int’l exhibition on oil and gas industry

With sponsorship from the Singapore Industrial Automation Association (SIAA) Vietnam hosted the first Oil & Gas Vietnam Exhibition (OGAV) 2013.

The three-day event opened its doors in Vung Tau City in the southern province of Ba Ria Vung Tau, on December 4, with more than 60 organizations from ten nations around the world, showcasing their latest developments in the oil and gas industry.

Exhibits included specialized products, services and hi-technology equipment in the oil, gas and energy sectors.

 Delegates from major oil and gas producers, investors, business representatives and government agencies uses the forum as an opportunity to strengthen cooperation and exchange, strengthen links, seek new partners and develop a global business network.

The event also raised the status of leading world experts and oil and gas companies in the field of science and technologies, particularly in Southeast Asia.

A seminar on discussing safety solutions, production techniques, technologies and new advancements in the oil and gas sector was also held during the event.

Forum on Asia-Euro creative economy

Hanoi hosted the Asia-Europe Foundation (ASEF) experts’ meeting and public forum on creative economy in Asia and Europe themed “Emerging pillar of economic growth & development” on December 4.

The event organised by the ASEF, the International Federation of Arts Councils and Culture Agencies (IFACCA) and the Ministry of Culture, Sports and Tourism attracted experts and representatives from central ministries, international organisations in Hanoi and the World Intellectual Property Organization (WIPO).

Karsten Warnecke, ASEF Deputy Executive Director, said culture is increasingly recognized as an impetus for economic growth. Opportunities for high growth of cultural and creative industries will contribute to dealing with major challenges in the development process throughout Asia and Europe.

The meeting gave participants an excellent opportunity to promote and share experiences of creative approach, and improve and strengthen future cooperation and communication in the creative economy of the two continents.

Creative and cultural industries are now widely acknowledged as dynamic sectors of the global economy, offering high growth opportunities.

Based on the premise that culture can be an effective driver of economic growth, Asian and European governments, in consultation with the arts sector and international institutions are directing large amounts of investment towards these industries and developing tailor-made local and national policies.

The agenda for discussion included policies and strategies on the creative economy, a deeper analysis of existing policies shaping the creative economy and their potential for innovatively addressing hurdles in development.

Experts also announced cultural policies of India and the Republic of Korea (RoK) and proposed policies for submission to the sixth ASEM Culture Ministers’ Meeting in 2014.

Vietnamese cultural policy will be made public on December 5.

Economic difficulties still looming

2013 is a “sad” economic year and 2014 will be another difficult year for businesses, economists say.

Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry, affirms that 2013 has seen a large number of bankrupt and dissolved businesses. More than 60% of them are unable to pay taxes.

Over the past 5 years, especially the last two years, many businesses have grasped business opportunities arising from international economic integration, but there remain certain problems caused by macroeconomic instability, such as low competitiveness and production efficiency, Loc says.

Doan Trong Ly, President of the Animal Production Processing Import and Export Joint Stock Company (APROCIMEX), says 2011 and 2012 were confronted with the shortage of capital for production, but 2013 has seen the domestic market shrinking by 20% compared to the previous years.

To iron out snags in raising social demands to a higher level, it depends on the Government’s macroeconomic management. In other words, the Government will have to take drastic measures to find more outlets, especially for small-and medium-sized enterprises, Ly adds.

Ninh Thi Ty, President of Ho Guom Garment Company, says most garment and footwear businesses have been in a fix, especially in recent months. They are all short of materials and then use of imported domestic ones instead remains low.

Nguyen Hoang, President of the Hanoi Support Industry Association, says many businesses need more assistance from the Government and other ministries so they are still in their infancy.

To help them overcome difficulties, Loc emphasises that the VCCI will continue to push through administration reform to improve the business environment.

It will support them in restructuring their operations and improving their management skills, making full use of all resources available and applying modern growth models.

The association will support businesses in promoting import-export activities and grasping new opportunities, dealing with trade barriers during their integration into international markets and building market protection mechanisms in line with World Trade Organisation (WTO) regulations.

BIDV provides US$5 million for Japanese enterprises

The Bank for Investment and Development of Vietnam (BIDV) will provide US$5 million in credit for Japanese small-and medium-sized enterprises (SMEs) operating in Vietnam.

The information was released by Le Dao Nguyen, Vice Chairman of BIDV Board of Management at a seminar on promoting Japanese investment in Vietnam between the BIDV and Shinkin Central Bank taking place in Hanoi on December 3.

Akira Ito, Managing Director of Shinkin Central Bank, said thanks to the Vietnamese Government’s policy of attracting foreign investment, the automobile manufacturing, processing and infrastructure construction sectors are increasingly growing in northern Vietnam.

Shinkin Central Bank currently has about 200 business clients operating in Vietnam. It is expected to attract a host of Japanese small and medium enterprises (SMEs) in the coming time.

Addressing the event, Do Nhat Hoang, Director of the Foreign Investment Agency under the Ministry of Planning and Investment, said that Japan remains the biggest investor in Vietnam with its newly registered capitalization of US$34.52 billion, accounting for 13.48 % of the country’s registered investment capital.

Notably, most of Japan’s major projects are concentrated, mainly in the fields of processing industry, manufacturing, high technology like those of Honda, Toyota, and Canon.

Hoang said that the Ministry of Planning and Investment is proposing incentives to FDI enterprises, particularly Japanese SMEs.

Three ‘giants' agree on technology solutions

Giant Software Company (FPT Software), Samsung Electronics Viet Nam and VMS Mobifone have signed a co-operative agreement to provide comprehensive corporate governance packets based on the Mobility platform on Tuesday.

This agreement is the first comprehensive co-operation in Viet Nam by a solution provider, a device vendor and a service provider.

In the future, the three parties will invest in R&D to continue offering corporate governance solutions to customers, such as solutions for retail network management, customer care solutions for enterprises in the field of fast moving consumer goods, pharmaceuticals, industrial products, and banking..

Workshop highlights new prospects for SMEs in ASEAN markets

Vietnamese small and medium-sized enterprises (SMEs) stand a good chance of penetrating foreign markets and the world by joining ASEAN-related free trade agreements, heard participants at a workshop in Ha Noi yesterday.

The workshop was held to support Vietnamese SMEs seeking to take full advantage of the ASEAN Free Trade Agreement (AFTA), and the bloc's FTAs with Japan, the Republic of Korea, China, Australia, New Zealand and India.

The process has facilitated economic growth in the region and created a highly competitive economic zone, in addition to helping the Association of Southeast Asian Nations, including Viet Nam, fully integrate into the global economy, said Vice President of the Viet Nam Chamber of Commerce and Industry (VCCI) Doan Duy Khuong.

Effectively utilising opportunities from the process would help the bloc's members to reform their policies and the business environment to attract more foreign investment and enhance manufacturing capacity, he added.

Andrew Holt, First Secretary of the British Embassy in Viet Nam, underlined the key role of SMEs in Viet Nam's economic reform, particularly given the current economic downturn.

He noted that local firms have yet to fully make use of tax incentives when doing business with partners within and outside the regional grouping.

The workshop also allowed Vietnamese SMEs to prepare solutions to cope with challenges brought about by the agreements, Holt added.

Rural goods come to supermarkets

The unique traditional features of rural markets and their specialities are being showcased at many modern distribution channels in an effort to promote Vietnamese products as well as earn higher revenue in difficult economic times.

Several weeks ago, wholesaler Metro Cash & Carry Vietnam announced a new pilot model at its Metro Thang Long store in Ha Noi with the hopes of bringing traditional features of the Vietnamese people to their customers.

With this plan, floor space has been set aside and designed to look like a rural market. The area in the store in Ha Noi sells food and other products, and offers promotions.

Khuat Quang Hung, head of the Metro's general affairs and corporate communications, told Viet Nam News that with food hygiene and safety being the highest concern of consumers, such trading methods had made their customers feel more secure.

He explained that the products were provided by suppliers and farmers from areas that grow clean vegetables and fruits in Dong Anh District of Ha Noi and northern Hai Duong Province.

"We have signed contracts with farmers and suppliers so that we can ensure the quality of our products as well as food hygiene and safety. Moreover, thanks to the co-operation, the price of many products such as carrots, corn, watermelons and many vegetables, is about 10-15 per cent lower compared with wholesale markets," he said.

Although they have not set up specific areas for rural specialities, other big supermarkets such as Big C and Co-op Mart, for a long time, have begun to sell these kinds of foods.

At Co-op Mart, customers can find many rural specialities but they are all packaged. Meanwhile, at Big C, there are many choices.

A representative from Big C said that for many years their supermarkets in HCM City sold Pia cake, a speciality from Soc Trang Province in the Mekong Delta, bean cakes and many kinds of noodles, which are specialities of southern provinces.

"The supermarket decided to sell these specialities to meet the demand of customers and to advertise rural specialities," she said.

The new business method has brought good results to the model distribution channel.

Hung of Metro said that thanks to the new model, their revenue had increased.

"The revenue rose, especially on initial days. We also received many supportive ideas from customers," he said.

According to Hung, the pilot will be run until Tet (Lunar New Year). If the pilot goes smoothly, it will be expanded and applied to their systems in the entire region.

Meanwhile, Big C said that sales had been good and in the coming time it would expand the model. It plans to co-operate with small- and medium-sized enterprises to bring more rural specialities to its system.

Individual customers have also traded these products in social networks.

Just with one click on a link about rural specialities, customers can find favourite foods on many pages, such as Facebook, online forums or other sites like dacsanvungmien.com.

However, experts warned that customers must carefully consider choices before purchasing because online markets, unlike brick-and-mortar supermarkets, do not ensure the quality of the products that are sold online.

Ministry keeps lid on gas prices

The Ministry of Finance (MoF) has rejected a proposal to reduce the gas tariff to zero per cent in the hope of lowering retail prices.

Since December 1, consumers have paid an additional VND80,000 ( US$4) per 12-kg gas canister.

To help lower the price, the Viet Nam Gas Association sent a request to ministry to reduce the current 5 per cent tariff to zero per cent so retail prices would fall by VND17,000 ($80 cents) a canister.

While the Ministry of Industry and Trade also supported the association's request, the finance ministry did not think it was the correct time for a tariff adjustment.

Nguyen Anh Tuan, head of the ministry's price management, told the press on Tuesday that the Vietnamese price was based on world prices, which explains a recent rise in gas prices in Viet Nam.

Tuan said that as local gas enterprises must pay another $267.5 for a tonne of gas, it was reasonable for them to raise the price by about VND80,000 per 12 kg.

Regarding local rumours that poor management was causing gas prices to rise, Tuan said finance ministry inspectors had conducted regular inspections of gas prices and gas enterprises since 2010 and found no violations.

He concluded that after the ministry considered all factors, including market supply and demand, production and business conditions, as well as the consumer price index, officials chose to continue charging the current 5 per cent tariff for gas, while closely monitoring gas prices in the local and world markets.

If gas prices continue to keep rising, ministry officials will suggest that the Government take suitable measures to stabilise the market, Tuan said.

HCM City SOEs to benefit from SBV $2bn credit

The State Bank of Viet Nam (SBV) has allocated VND45 trillion (US$2.13 billion) for lending to State-owned enterprises (SOEs) in HCM City by the end of this year.

Nguyen Hoang Minh, deputy director of the central bank's HCM City branch, said since the beginning of this year, the bank has focused on consumer loans and restructuring debts for State businesses.

Speaking at a conference to review business operations of State-owned enterprises in the city over the first 11 months, he said commercial banks have cut interest rates on loans worth VND40 trillion ($1.9 billion) for State-run businesses.

He said the central bank branch has pushed three measures: extend due loans; continue to lend to State enterprises with bad debt if they demonstrate effective business operations; and simplify credit conditions.

Minh said the bank has also widened its scope for providing loans.

Many representatives of State-owned companies said at the conference that they still faced many challenges and their profits had dropped significantly.

Le Hoang Quan, chairman of the HCM City People's Committee, urged the SOEs to take the initiative and plan more effective business operations. He said they should make long-term investment plans while also enhance management and co-operation.

According to the Business Finance division under the municipal Finance Department, total revenues of 93 SOEs in HCM City reached VND74.58 trillion ($3.5 billion) in the first 11 months, meeting 76.79 per cent of the year's target, a year-on-year decrease of 30.96 per cent.

During this period, they earned profits of VND6.32 trillion ($299.7 million), meeting 77.67 per cent of the annual target, a drop of 8.34 per cent year-on-year.

SOEs contributed VND7.24 trillion ($340.8 million) to the city's budget in the first 11 months, meeting 82.3 per cent of the annual target, an increase of 6.47 per cent over the same period last year, the conference heard.

There are a total of 108 State-owned enterprises in HCM City, of which 15 are either being merged, dissolved or filing for bankruptcy, according to the HCM City Department of Finance.

Manufacturing output rises in November

Viet Nam's manufacturing output increased last month for the second consecutive month. It was the highest rate recorded since September, 2011.

Companies reported that production was raised to help deal with higher volumes of new orders in September and October.

The backlog of work was cleared to the greatest extent since August, according to the Purchasing Managers' Index (PMI) report released on Tuesday by HSBC Vietnam.

However, the growth of the Vietnamese manufacturing econ-omy weakened in November as a fall in new orders broadly offset continued expansion of output and employment. There were reports that client demand had weakened because of stormy weather and flooding.

The headline seasonally adjusted Purchasing Manufacturing Index (PMI), a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy, was 50.3 in November.

That was down from 51.5 in October, although above the crucial 50 no-change mark for a third successive month.

November's survey indicated that volumes of new orders fell for the first time in three months.

The modest reduction followed on from a record increase in October, and was reportedly a reflection of relatively weaker demand. There was evidence that poor weather that resulted in flooding contributed to reductions in new orders.

New export orders were also down in November amid reports of softer foreign demand for Vietnamese manufactured goods.

With production requirements continuing to increase during November, manufacturers again added to their payroll numbers.

Growth in November extended the current run of employment expansion to four months, although the latest net increase was again modest.

Manufacturers also increased their purchasing activity, the third successive month that this has been the case. Growth was again solid as companies sought to service higher current output.

Stocks of purchases were also depleted, albeit only marginally.

On the price front, input costs continued to increase during November, reportedly the result of supply-side issues that led to a scarcity of raw materials.

Although solid, the degree to which input costs increased was the slowest seen since July.

Moreover, vendors were also keen to improve their performance in the face of stock shortages. Finally, manufacturers sought to protect margins by raising their own prices.

VN sees trade surplus with Africa, Asia

Viet Nam experienced a trade surplus of approximately US$4.65 billion with Africa, West Asia and South Asia markets during the first 10 months of 2013, according to official statistics.

The Ministry of Industry and Trade's Africa, West Asia, South Asia Market Department said Viet Nam's total trade turnover with the bloc was estimated at $14.8 billion as of the end of October, with exports surging by 46 per cent to $9.7 billion and imports by 22.7 per cent to $5.07 billion.

Viet Nam mainly shipped mobile phones, rubber, coffee, seafood and computers to these regions, while importing oil and related products, animal feed, cotton and fibre.

During the reviewed period, the country's exports to West Asia, in particular, saw a yearly increase of 70 per cent to $5.4 billion. Key export markets included the United Arab Emirates (UAE), Turkey and Saudi Arabia, contributing $3.5 billion, $998 million and $433 million, respectively.

Exports to South Asia grew 38 per cent, with separate earnings from India, Bangladesh and Pakistan estimated at $2.04 billion, $399 million and $139 million, respectively.

Meanwhile, exports to Africa hit $1.6 billion, up 7.1 per cent year-on-year. Four key export markets which recorded high export values were South Africa ($646 million), Ivory Coast ($233 million), Ghana ($210 million) and Egypt ($182 million).

From January to October, Viet Nam imported $429 million in goods from Africa (up 54 per cent), $2.3 billion from South Asia (up 21 per cent), and $2.2 billion from West Asia (up 21 per cent).

VDB provides financing for construction of plywood

Viet Nam Development Bank's branch in Bac Kan Province and SAHABAK JSC have signed a credit agreement to finance construction of a medium density fibreboard (MDF) with SAHABAK manufacturer in northern Bac Kan Province.

Accordingly, the Viet Nam Development Bank (VDB) will fund a loan of VND680 billion (US$32million) within 12 years with preferential interest rates for the SAHABAK JSC to manufacture an MDF plywood factory with a production capacity of 108.000 cu.metre per year.

Ministry requests lower milk prices

The Ministry of Finance has asked dairy producers and traders in Viet Nam to reduce production and trading costs to lower the retail price of milk products.

That is one of the ministry's instructions in official letter 16665/BTC-QLG issued on Monday to promote management of retail milk prices in the local market.

The ministry has asked finance departments in provinces and cities nationwide, along with taxation and customs offices, to inspect and control milk prices according to regulations on prices for milk products and nutritional products containing milk for children under six years old, under the Circular 30/2013/TT- BYT.

The ministry also requested producers and distributors of milk products, and products containing milk, to not increase prices for those products if factors creating retail prices remain unchanged.

Meanwhile, the ministry would work with the Ministry of Health to regularly review the local milk market and add new products to the list of milk products and products containing milk for children under six years old that are price-stabilised goods.

The Customs Office would also investigate prices of imported milk products after clearing customs if, at the moment of performing customs clearance procedures, prices of those products at customs declarations are 15 per cent higher or 5 per cent lower than the price at the Customs Office, the ministry said.

Next year, the ministry will run a data centre and services related to price, as well as provide information about costs for customers, including milk prices.

Powdered milk prices have been increasing since 2009, when the practice of changing the name began to emerge. There has been an average of two or three price hikes annually. In this year alone, consumers have seen three price increases. Each one was an increase of five to 10 per cent.

Therefore, the Prime Minister asked the Ministry of Finance and other ministries and offices to report the price hike of milk products and closely control the market.

Power generation capacity to increase by 462MW

The Electricity of Vietnam (EVN) will put into operation new turbines at Song Giang hydropower plant, Dak Drinh hydropower plant and Nghi Son thermoelectric plant in December with a total capacity of 462MW, according to the Ministry of Industry and Trade.

This month, EVN will also put into use the Quang Ninh-Hiep Hoa and Vinh Tan –Song May 500 kV transmission lines, Vinh Tan 500 kV transformer station of the Vinh Tan 2 thermoelectric plant, the Son Ha-Doc Doi 220kV line of the Dak Drinh hydropower plant, and a part of the Thanh Hoa-Nghi Son 220Kv line.

Along with installing equipment for the Nho Quan-Ha Tinh 500kV transmission line, the group is working to complete the Phu Lam-O Mon and Quang Ninh-Mong Duong 500kV lines and a 220kV line to the Ha Tinh Formosa Thermoelectricity Plant .

It also focuses on building an undersea cable to bring electricity from Ha Tien commune to Phu Quoc Island in the southern province of Kien Giang , while taking measures to supply electricity to the Samsung Electronics plant in Thai Nguyen province in 2014.

In addition, the group has urgently completed investment procedures and capital arrangements with the aim of starting several projects at the end of this year such as the Lai Chau- Son La and Bac Ninh 2-Pho Noi 500kV lines, the My Tho and Pho Noi 500kV transformer stations and a transformer station in Tay Ninh province.

The group is making every effort to speed up construction of the Pleiku-My Phuoc-Cau Bong 500 kV line while coordinating with the Ministry of Industry and Trade to accelerate the approval of a project to provide electricity for Ly Son Island in the central province of Quang Ngai.

Optimism over Vietnam property: investors

A number of real estate companies and experts were quoted by New York Times as saying that Vietnam’s beleaguered property market is bottoming out just as macroeconomic indicators stabilise and the Party makes new pledges to reform a struggling and corruption-riddled banking sector.

Dinh Thien Thien’s barbecue business bloomed just as Vietnam’s property market wilted. It was not a coincidence, according to New York Times.

In 2010, Thien said he rented an empty lot downtown here, where construction had largely stopped, and installed a grill. He added some homemade wooden furniture intended to conjure the image of a saloon - a motif inspired by his love of American westerns. Word of his movable feasts began to spread on Facebook, and within months he was renting 15 lots for the equivalent of 1,000-5,000 USD a month.

But as construction picks up again,Thien, 32, is down to five locations. Some of his former grill sites are dotted with cranes or cement mixers, and he predicts that in three years he will be forced to pursue an entirely new line of work.

Vietnam’s beleaguered property market is bottoming out just as macroeconomic indicators stabilise and the ruling Party makes new pledges to reform a struggling and corruption-riddled banking sector, say developers and businessmen here, the country’s commercial capital. And if Vietnam signs onto the Trans-Pacific Partnership, a proposed trade agreement that involves a dozen countries, including the United States, it may bolster the Vietnamese economy and speed a real estate recovery.

Yet although lending rates have fallen to 12.8 percent, from 20.3 percent in 2011, no one in Vietnam knows whether the market can rebound to the peaks it hit before 2008, much less whether the government’s statistics or commitments to banking reform are reliable. For the moment, the mid- to high-end apartment markets remain oversupplied in this city and in the capital, Hanoi.

“It’s going to be another year before things get more clear - it’s rather opaque at this point,” said Trinh Bao Quoc, chief executive at Son Kim Land Corporation, a local developer. “But if you talk to foreign investors, a lot of them who are here in Vietnam know that this is a good time to buy.”

In this city, asking rates for office rentals, now at about 20-30 USD per square meter, or about 10 square feet, began to rise in late 2012 for the first time since 2007, according to the Los Angeles-based real estate company CBRE. And in recent months, average selling prices for low-end residential properties in Hanoi have held steady around 800 USD per square meter after falling precipitously for two years.

Some foreign investors have bought real estate here this year, in what brokers suggest is a sign of rising liquidity and investor confidence. And a few major construction projects are in the pipeline, including a tower that will include Vietnam’s first Ritz-Carlton.

And in July, Vingroup, a real estate developer in Vietnam, opened the country’s largest shopping mall, which has a gross floor area of more than 200,000 square meters, or 2.1 million square feet. A company spokesman said 53 percent of the 4,518 units at a new apartment complex nearby had already been sold, and 29 percent of them were leased for 50 years.

“We believe the real estate market is recovering well now and is expecting a positive turnaround by the end of this year or early next year,” said Le Thi Thu Thuy, chief executive of Vingroup.

But Viet Nam’s economy has underperformed relative to predictions that accompanied its 2007 entry to the World Trade Organisation, and its current annual growth rate of about 5.3 percent is the slowest in more than a decade. A central obstacle to economic recovery is that local banks are saddled with bad debts linked to speculative property investments.

Credit has tightened in the years since the market began to sour in 2008, and in July the government created an asset management firm tasked with buying bad debts in the banking sector. In September, PM Nguyen Tan Dung also pledged to raise the cap on foreign ownership in local banks to 49 percent from 30 percent.

But analysts say many of the bad debts are still linked to real estate.

Labour exports pick up speed in 10 months

More than 70,000 Vietnamese labourers went to work abroad from January to October, with Taiwan attracting 40,000, statistics show.

Vietnam Investment Review quoted statistics from the Ministry of Labour, Invalids and Social Affairs’ Overseas Labour Management Department (OLMD) as saying that Taiwan still ranked as the largest market for Vietnamese labourers in October and the country aims to send 80,000 workers abroad this year.

Between October 20 and November 14, the OLMD licensed about 2,000 to work in Taiwan and that figure is expected to rise to 10,000 by early February 2014.

Ninety percent of labourers went to work in factories, and a small number worked as nurses for rest-homes and other medical facilities.

According to the Vietnamese Labour Management Board in Taiwan, one key factor attracting workers to the country was the increase of the basic salary for guest workers to 13.3 million VND (630 USD) per month.

They added that expenses paid by workers for procedures prior to leaving are only around 3,000 USD. Taiwan is increasing its overseas labour recruitments to offset its manpower shortfall.

Top labour exporters are Hutraserco Limited, Cienco 8, Oleco, Halasuco, and Hycolasec.

Deputy general director of Hyoclasec Pham Ngoc Minh said the average income of guest workers in Taiwan range from 17.5-21 million VND (830-1,000 USD) per month, with workers able to save between 570-715 USD per month.

After a period of stagnancy, firms have also started labour exports to the Middle East and Africa, particularly Bahrain and Saudi Arabia.

The pay for guest workers at construction sites in Bahrain ranges from 8-25 million VND (380-1,200 USD) per month, depending on profession. In Saudi Arabia, they are paid from 7-27 million VND (330-1,285 USD) per month, based on skills and work requirements.

Qatar has attracted nearly 2,000 Vietnamese guest works so far this year, mostly in construction, with pay ranging from 7-11 million VND (330-520 USD) per month.

For the African markets, the OLMD just licensed Hoang Long Limited to recruit 110 truck drivers and construction workers to go to Angola. Employer Avir Company plans to pay them more than 800 USD per month. Avir will also pay for their air tickets.

After several years of delays, Libya has just opened up with a test programme that receive 200 manual labourers with pay ranging from 300-1,000 USD a month.

HCM City intensifies supervision of goods supply, price for Tet Lunar New Year

According to Le Ngoc Dao, Deputy Director of the Department of Industry and Trade in Ho Chi Minh City, as this year New Year and Lunar New Year are just one month apart--purchase power may rise slightly during Tet festive season with consumption rising by 20 percent compared to last year.

In order to ensure supply during the Tet festive season, businesses in Ho Chi Minh City have already prepared goods worth nearly VND7.6 trillion, an increase of nearly VND2.2 trillion against the same period last year, with VND4.9 trillion worth of goods under the price subsidized program, up VND1.87 trillion.

Three wholesale markets have also finished plans to supply goods during Tet. This month, Binh Dien Wholesale Market will put in use a cold storage facility with capacity of 21,000 tons over an area of 11,000 square meters, to cater to preservation demand.

At traditional markets, the department has coordinated with Sacombank to offer a loan package of VND1.5 trillion at an interest of 9 percent to help small traders to prepare goods for Tet festive season.

Sweet meats and beverage producers have already ensured supply while confectioneries have presented new products with production increasing by 20-30 percent compared to last year.

Bui Hanh Thu, Deputy CEO of Saigon Co.op, said that the company had concluded with suppliers and producers about quantity and price for several essential goods to meet demand during Tet, with total value of goods at VND5 trillion. Moreover, the company has also run a program to boost consumption of Vietnamese products.

Tran Thanh Nam, Deputy CEO of Satra, said that the company has prepared 10,000 tons of goods, worth VND1.5 trillion, with 1,000 tons of rice, 2,500 tons of sugar, 500 tons of cooking oil, besides fresh foods and processed foods.

Nguyen Thi Hong, Vice Chairwoman of the People’s Committee of Ho Chi Minh City, said that with such preparation, the City will not face shortage of goods supply or a sudden hike in price during Lunar New Year holidays.

The City is currently closely watching the progress of supply plans by businesses participating in the price subsidized program, constantly inspecting price subsidized stores, and has intensified coordination with relevant departments to inspect and control price and food safety.

Ho Thi Kim Thoa, Deputy Minister of Industry and Trade, said that the City should pay more attention on supply, price and food safety as well as transport fare during Tet holidays. She also praised the efforts of the City in preparing goods as well as measures to stabilize the market during Tet festive season, especially the price subsidized program which brings practical results in ensuring goods supply and control of price, and helps to lower consumer price index in the country.

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