PetroVietnam hopes to grow vigorously in future

President Truong Tan Sang visits PetroVietnam officials and workers

President Truong Tan Sang hoped that the Vietnam Oil and Gas Group (PetroVietnam) will grow vigorously despite global economic downturns while meeting with PVN staff in Hanoi on February 4, on the occasion of the upcoming traditional Lunar New Year (Tet).

With 40 years of development, PetroVietnam, which began as a joint venture between Vietnam and the former Soviet Union, has hugely expanded its operational scale and effective cooperation with other countries, the President said.

This has lived up to the expectation of late President Ho Chi Minh upon his arrival in Azerbaijan – then a developing oil and gas nation, over 50 years ago, he added.

The endless effort of the 50,000 officials and workers of the group has significantly contributed to the local economy, as well as other fields such as defence-security and diplomacy, he stressed.

He suggested the national group be fully aware of the opportunities and challenges in 2016 given the country’s deep-and-wide global integration, and that it should have proper strategies and solutions for rapid and sustainable development.

The State leader said he hopes PetroVietnam will become a firm pillar in the local economy, with the best management capacity and highest economic efficiency.

Leaders of the national group reported that PetroVietnam grossed VND560 trillion (US$25.2 billion) in revenues in 2015 despite global declining oil prices. Over the past five years, the group contributed over VND836 trillion (US$37.62 billion) to the State budget.

MoIT releases text of Trans Pacific Partnership

The legally verified text of the Trans-Pacific Partnership (TPP), which supersedes the version released on November 5, 2015 is now available, reports the Ministry of Industry and Trade (MoIT).

This is the version that was used for signature on February 4 in Auckland, New Zealand.

moit releases text of trans pacific partnership hinh 0

To access the text in English, Vietnamese, French or Spanish, and for more information on the TPP, see the MoIT website http://tpp.moit.gov.vn/.

Forbes hails Vietnam’s economic achievements

Forbes recently ran an article entitled “Vietnam – the quiet economic success story of Asia”, hailing positive changes in Vietnam’s economy.

The article said Vietnam has developed dramatically following 30 years of renewal. One of the poorest countries on earth 30 years ago, Vietnam is now officially a lower middle income country with a market oriented economy.

The images of Vietnam in conflict and rural poverty beamed on to television screens around the world in the 1960s and 1970s have already been replaced with office towers, high-end boutiques and bustling streets. The article said the signs of Vietnam’s economic development were visible on the skyline of Ho Chi Minh City, or Saigon.

According to Forbes, despite the global financial downturn in 2008, Vietnam recorded a GDP growth of 6.3% in the first half of 2015, equivalent to its growth average during the 2000s.

Forbes attributed this growth to Vietnam’s disproportion ally young and well connected population, citing 2014 data which showed that more than 40% of the population was aged under 25.

Forbes quoted a study by the World Bank (WB) which indicates that Vietnam ranks 90th out of 189 surveyed economies regarding doing business index. Forbes said there is much to be positive about in the economic outlook for Vietnam, adding that the nation can be regarded as one of the quiet success stories of Asia.

PetroVietnam hopes to grow vigorously in future

President Truong Tan Sang hoped that the Vietnam Oil and Gas Group (PetroVietnam) will grow vigorously despite global economic downturns while meeting with PVN staff in Hanoi on February 4, on the occasion of the upcoming traditional Lunar New Year (Tet).

With 40 years of development, PetroVietnam, which began as a joint venture between Vietnam and the former Soviet Union, has hugely expanded its operational scale and effective cooperation with other countries, the President said.

This has lived up to the expectation of late President Ho Chi Minh upon his arrival in Azerbaijan – then a developing oil and gas nation, over 50 years ago, he added.

The endless effort of the 50,000 officials and workers of the group has significantly contributed to the local economy, as well as other fields such as defence-security and diplomacy, he stressed.

He suggested the national group be fully aware of the opportunities and challenges in 2016 given the country’s deep-and-wide global integration, and that it should have proper strategies and solutions for rapid and sustainable development.

The State leader said he hopes PetroVietnam will become a firm pillar in the local economy, with the best management capacity and highest economic efficiency.

Leaders of the national group reported that PetroVietnam grossed 560 trillion VND (25.2 billion USD) in revenues in 2015 despite global declining oil prices. Over the past five years, the group contributed over 836 trillion VND (37.62 billion USD) to the State budget.

Gia Dinh Textile and Garment to launch IPO

Gia Dinh Textile and Garment one-member limited company (GIDITEXCO) will launch the auction of 15 million shares in its initial public offering on the HCM Stock Exchange on March 18.

The shares will be offered for a starting price of 10,200 VND (45 US cents) each.

Based in the country’s economic hub Ho Chi Minh City, the State-owned Giditexco specialises in production and import and export of products, machinery and equipment for the textile and garment industry.

The company, which has two subsidiaries and 12 joint ventures in Vietnam, is estimated to have a charter capital of more than 627 billion VND (28 million USD) after equitisation.

Kien Giang welcomes 335,000 tourists in January

The Mekong Delta province of Kien Giang welcomed over 335,000 holiday-makers in January, representing a year-on-year rise of 18 percent.

The figure includes 37,000 foreigners, 7.4 percent higher than the same period last year.

Tourism sites in Rach Gia city, Ha Tien town and the districts of Hon Dat, Kien Hai, Kien Luong and Phu Quoc proved attractive to tourists. Phu Quoc island alone greeted over 27,000 foreign arrivals.

Kien Giang province is hosting a tourism year with the theme “Explore the Southern Land”. It is a large-scale cultural, economic and social event, aiming to attract domestic and foreign tourists.

A ceremony to commemorate the 54 th anniversary of the death of heroine of the people’s armed forces Phan Thi Rang was held at the Ba Hon historical relic site, marking the beginning of the event.

Mai Van Huynh, vice chairman of the provincial People’s Committee and vice head of the event’s local-level organisation, said local authorities are working hard to promote activities for the event.

The highlight will be a festival celebrating the 280 th founding anniversary of the Chieu Anh literary coterie group in Ha Tien town from February 20-22, which will feature a wide range of activities such as poetry and calligraphy, a photo exhibition and traditional games.

Last year, Kien Giang received over 4.3 million visitors, up 15 percent compared to the previous year. International tourists to the province hit 220,000.

The locality raked in nearly 2.25 trillion VND (around 100 million USD) in 2015, 18 percent higher than the annual target and up 46 percent against 2014.

Kien Giang is home to 252 tourism projects with total registered capital of over 188.3 trillion VND (84.6 million USD). Many of these have been completed and put into operation.

In 2016, the locality hopes to serve 4.94 million arrivals, including over 280,000 foreigners, and earn 2.6 trillion VND (117 million USD).

Tra fish exports to UK increase sharply

Tra fish exports to the UK hit US$46 million last year, an increase of 13.9% against 2014, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

The figure accounted for 3% of total tra fish export turnover.

This was the highest growth rate among markets importing Vietnamese tra fish. The UK ranks third among importers of Vietnamese tra fish in the European Union (EU), after the Netherlands and Spain.

According to statistics from last year, the average import price of tra fish and other catfish in the UK was between US$3.11 and US$3.82 per kilogramme, higher than in other EU markets, such as Germany, Belgium, Finland and France.

Vietnam earned US$6.57 billion from seafood exports last year, according to VASEP. Of the figure, tra fish was one of the main earners with a value of US$1.6 billion.

Vietnam, New Zealand forum in Auckland promotes trade

Vietnam and New Zealand business leaders met on the side lines of the TPP signing ceremony in Auckland to get a better handle on emerging issues surrounding increased trade and cooperation between the two countries.

Dozens of business, community and government leaders were in attendance at the event sponsored by the Ministry of Industry and Trade (MoIT) in collaboration with the ASEAN Business Council-New Zealand (ANZBC).

At the forum, Vietnam Minister of Industry and Trade Vu Huy Hoang talked about where the Vietnam economy has been, where it is headed and how the proposed TPP and governmental laws and regulations under consideration would affect them.

Forums like this are designed to improve Vietnam and New Zealand trade and cooperation relationships, said Hoang because by being there and talking face to face it gives people a better fingertip feel for what's going on.

Hoang said Vietnam’s combined imports and exports with New Zealand have increased more than two-fold over the last five years to US$707 million in 2015, which has barely scratched the surface of the future potential.

In addition, Hoang said he was confident that passage of the TPP would be important to maintaining export momentum with New Zealand and result in prospering trade and investment relations between the two nation’s business communities.

New Zealand Minister of Trade Todd Michael McClay, agreed with Hoang’s assessment that the TPP would stimulate economic trade and cooperation between the two nations in a vast array of fields.

McClay also unveiled the planned launch of a new direct air route between Auckland and Ho Chi Minh City later this year by New Zealand Airlines that is expected to play an important role in enhanced trade between the two nations.

Cashew exports surge in January

Viet Nam's cashew exports in January jumped 15.6 per cent year-on-year to US$183 million, according to the Ministry of Agriculture and Rural Development.

In volume terms, they were up 9 per cent to 24,000 tonnes.

The US, China, and the Netherlands remained the three largest buyers, accounting for 34.3 per cent, 14.7 per cent, and 12.8 per cent of the exports.

According to the Viet Nam Cashew Association (Vinacas), demand, both abroad and locally, has increased strongly this year and cashew processors and exporters have worked to increase supply. Demand surges in Viet Nam and China during Lunar New Year, it said.

In the domestic market, the price of raw cashew nut has gone up to around VND40,000 per kilograme, VND1,000 up from December.

Dang Hong Giang, Vinacas deputy chairman, said exports to TPP member countries account for more than 50 per cent of the total, with the US being the biggest buyer.

The TPP is a good thing for the cashew industry, he said, adding that lower tariffs under the deal would enable Vietnamese firms to increase exports to member countries.

However, the industry needs breakthrough measures to improve quality and output of raw cashew as it still imports a large quantity from other countries, he said.

The application of advanced farming techniques has significantly improved productivity in many areas, which has helped meet at least 50 per cent of demand for raw cashew, he said.

The association is implementing a cleaner production programme to improve the quality of the nuts, he said, noting that quality would decide the survival and sustainable growth of the industry.

Firms must meet EU requirements

Vietnamese firms have been urged to prepare for the impending Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLEGT).

The agreement is expected to generate significant opportunities for the expansion of wooden product exports to European markets.

The VPA/FLEGT is expected to conclude negotiations and be signed at the end of this year.

According to Nguyen Ngoc Thang, manager of the World Wildlife Fund Viet Nam's project for supporting VPA negotiations, was quoted by Cong Thuong newspaper as saying that the VPA/FLEGT would help eliminate legal risks for wooden export firms selling to European markets while promoting the domestic wood industry of more than 3,500 firms and 300,000 labourers.

The signing of the VPA with the European Union – a very strict market with high requirements for timber and wood products – will also enhance the trust of Viet Nam's other major partners that have similar requirements for wood origins, such as the United States, Australia and Japan, experts said.

Still, many firms are not sufficiently aware of the impact the VPA/FLEGT will have on their operations and have not made adequate preparations.

The VPA/FLEGT requires participating firms' operations to comply with FLEGT legal requirements.

Viet Nam's wood and wooden product exports were expected to expand by 12-15 per cent in 2016 from US$6.9 billion last year, according to the Handicraft and Wood Industry Association of HCM City.

Viet Nam was the fourth largest wood exporter in the world, trailing after China, Germany and Italy.

Dak Lak aims to attract investors

The Central Highlands province of Dak Lak seeks to improve its investment environment and become an ideal destination for investors, according to its Department of Planning and Investment.

Dinh Xuan Ha, the department director, said following great efforts by authorities to highlight the province's investment and business opportunities, more and more domestic and foreign investors are arriving in Dak Lak to explore them.

The province has attracted VND73 trillion (US$3.28 billion) in more than 600 projects, including 10 worth $178.1 million by foreign firms.

Many high-profile names such as Hong Anh Gia Lai Group, TH True Milk Group, Bien Hoa Sugar Company, and Viet Nhat Real Estate JSC are among the investors, Ha said.

"To attract more investors this year and in future, Dak Lak will focus on planning, regularly update the list of projects requiring investment and provide full information about these projects.

"Besides, it will make more efforts to improve the investment environment and its rank in the Provincial Competitiveness Index.

"The province has always considered administrative reform an important factor in attracting investors."

It would also strive to improve training for human resources, ensure public order and create conditions in which businesses feel secure about investing, he said.

The province would seek more investment in agricultural production and processing, especially for exports and those using high-technology, industrial livestock breeding attached to the food processing industry, regional-level schools and training centres, and supermarkets and malls, he said.

The 13,125sq.km province has an airport and a fairly developed road network, with many important national highways passing through it.

It has more than 600,000ha of forests with timber reserves of more than 50 million cubic metres.

With nearly 540,000ha of agricultural land, the province grows high-value commercial crops like coffee, rubber, and pepper, suitable for developing a processing industry around them.

Livestock and poultry farming have developed rapidly in the province, providing investors a good foundation for investing in industrial-scale animal breeding, feed production, and animal and poultry meat processing plants.

The province also has potential in minerals like feldspar and lead and sand and gravel for construction, meaning investors can develop processing industries.

It has an abundant workforce with more than 900,000 workers, 400,000 of them trained, to basically meet investors' human resources needs.

EVN, agencies to work together on power plants

Electricity of Viet Nam (EVN) has pledged to continue an active and creative co-operation with relevant ministries, sectors and localities to boost the implementation of components projects in preparation for the Ninh Thuan nuclear power plant on schedule, an official has said.

Deputy director of the Ninh Thuan Nuclear Power Project Management Board, Pham Minh Tuan, said on Monday EVN had also vowed to ensure the safety, security and effectiveness of the construction and operation of the nuclear plants.

A management board was established in March 2011 in a bid to boost the implementation of relevant projects.

In January 2013, EVN issued decision 17/QD-EVN to approve projects on developing infrastructure for the nuclear power plants.

In late 2014, projects on supplying water and electricity for Ninh Thuan Nuclear Power Plant 1 started, and are expected to be completed by December 2016.

A report from EVN said that surveys had been started for the construction of other support facilities, including a complex for monitoring the power plants' operations, a staff training centre and a 20-hectare project management board headquarter. They are scheduled to be completed between 2016 and 2017.

The Centre for Public Relations aims to promote the development of nuclear power in Viet Nam, and is expected to be finished in 2017 or 2018.

One of the main focuses of the nuclear power plan is to train senior officials who will manage and operate the nuclear power plants.

Ninh Thuan Nuclear Power Plant 1 in Vinh Truong Village, Thuan Nam District will sprawl over 443.11 hectares of land and 440.57 ha of sea.

Ninh Thuan Nuclear Power Plant 2 in Thai An Village, Ninh Hai District will take up 380.91ha of land and 337.63ha of sea.

Each will be equipped with four 2,000-megawatt turbines installed over two phases.

The first turbine at Ninh Thuan 1 is expected to be connected to the national grid by 2020.

Under the country's energy development plan, nuclear plants are expected to provide 15,000-16,000MW of power by 2030, representing 10 per cent of the total installed capacity in Viet Nam.

State's Vinachem to speed up equitisation

The State-run Viet Nam National Chemical Group (Vinachem) is to accelerate the equitisation of its affiliates and divest from non-core businesses in 2016, a senior company official said.

Deputy General Director Bui The Chuyen said Vinachem had realised 83 per cent of its equitisation plan in 2015, with five of the six target subsidiaries equitised and more than VND975 billion (US$43.7 million) collected in the move.

Meanwhile, it succeeded in divesting its capital from 13 of the 17 target enterprises, fulfilling 66 per cent of the set objective and taking back over VND674 billion ($30.2 million).

The group also admitted to certain obstacles to the equitisation of and divestment from some companies, and added that it suggested to the government that it consider some preferential treatment for Vinachem to speed up the work.

Equitisation and divestment are part of the restructuring of State-owned enterprises (SOEs), which constitute the economic restructuring scheme carried out since 2011. They aim to make SOEs more efficient and profitable.

The public investment and the banking system are also undergoing significant restructuring.

Ocean Mineral aims to buy shares

Ocean Mineral Investment Holding Company has asked the transport ministry to allow it to buy shares owned by Viet Nam National Shipping Lines (Vinalines) at Da Nang Sea Port JSC.

In a document sent to the ministry recently, the company expressed its desire to buy the entire shares of Vinalines at the business in lots, at the price under the country's regulations.

The company said if it was allowed to buy the corporation's shares at the port, it would focus investment in developing exploration capacity, reinforcing operation effect and competitiveness of Da Nang Port.

The Ocean Mineral Investment Holding Company, located in central Thanh Hoa Province, has a registered capital of VND560 billion ($25 million). It has recently put into operation three wharfs 3, 4 and 5 at Nghi Son international port, with total investment capital of VND1.6 trillion ($71.6 million). They were designed to receive vessels with tonnage of 30,000 deadweight and loading and unloading capacity of 4.5 million tonnes per year.

VCSC leads brokerage market

Ban Viet Securities Company (VCSC) led the local brokerage market in terms of revenue, earning VND336 billion (US$15 million) in 2015.

Meanwhile, Sai Gon Securities Inc, which is still the local leader in terms of market share, earned VND262 billion ($11.7 million) in revenue, a 11 per cent fall. Securities Corporation (HSC), the company with the second-largest brokerage market share in HCM City, earned VND292 billion ($13 million), down 12 per cent over 2014.

Most of the large securities firms in the market have reported fall in revenue in 2015, while Ban Viet Securities was among the few exceptions.

Telecom firm FPT Corporation (FPT) announced revenue of more than VND40 trillion (US$1.79 billion) in 2015, a y-o-y increase of 14 per cent.

The firm earned VND2.85 trillion ($127.6 million) in before-tax profit, a y-o-y increase of 16 per cent.

The corporation estimated the after-tax profit to be VND2.43 trillion ($108.8 million), up 17 per cent.

FPT plans to earn VND45.8 trillion ($2.14 billion) in revenue and VND3.15 trillion ($141 million) in before-tax profit this year.

Firms must meet EU requirements

Vietnamese firms have been urged to prepare for the impending Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLEGT).

The agreement is expected to generate significant opportunities for the expansion of wooden product exports to European markets.

The VPA/FLEGT is expected to conclude negotiations and be signed at the end of this year.

According to Nguyen Ngoc Thang, manager of the World Wildlife Fund Viet Nam's project for supporting VPA negotiations, was quoted by Cong Thuong newspaper as saying that the VPA/FLEGT would help eliminate legal risks for wooden export firms selling to European markets while promoting the domestic wood industry of more than 3,500 firms and 300,000 labourers.

The signing of the VPA with the European Union – a very strict market with high requirements for timber and wood products – will also enhance the trust of Viet Nam's other major partners that have similar requirements for wood origins, such as the United States, Australia and Japan, experts said.

Still, many firms are not sufficiently aware of the impact the VPA/FLEGT will have on their operations and have not made adequate preparations.

The VPA/FLEGT requires participating firms' operations to comply with FLEGT legal requirements.

Viet Nam's wood and wooden product exports were expected to expand by 12-15 per cent in 2016 from US$6.9 billion last year, according to the Handicraft and Wood Industry Association of HCM City.

Viet Nam was the fourth largest wood exporter in the world, trailing after China, Germany and Italy.

Dak Lak aims to attract investors

The Central Highlands province of Dak Lak seeks to improve its investment environment and become an ideal destination for investors, according to its Department of Planning and Investment.

Dinh Xuan Ha, the department director, said following great efforts by authorities to highlight the province's investment and business opportunities, more and more domestic and foreign investors are arriving in Dak Lak to explore them.

The province has attracted VND73 trillion (US$3.28 billion) in more than 600 projects, including 10 worth $178.1 million by foreign firms.

Many high-profile names such as Hong Anh Gia Lai Group, TH True Milk Group, Bien Hoa Sugar Company, and Viet Nhat Real Estate JSC are among the investors, Ha said.

"To attract more investors this year and in future, Dak Lak will focus on planning, regularly update the list of projects requiring investment and provide full information about these projects.

"Besides, it will make more efforts to improve the investment environment and its rank in the Provincial Competitiveness Index.

"The province has always considered administrative reform an important factor in attracting investors."

It would also strive to improve training for human resources, ensure public order and create conditions in which businesses feel secure about investing, he said.

The province would seek more investment in agricultural production and processing, especially for exports and those using high-technology, industrial livestock breeding attached to the food processing industry, regional-level schools and training centres, and supermarkets and malls, he said.

The 13,125sq.km province has an airport and a fairly developed road network, with many important national highways passing through it.

It has more than 600,000ha of forests with timber reserves of more than 50 million cubic metres.

With nearly 540,000ha of agricultural land, the province grows high-value commercial crops like coffee, rubber, and pepper, suitable for developing a processing industry around them.

Livestock and poultry farming have developed rapidly in the province, providing investors a good foundation for investing in industrial-scale animal breeding, feed production, and animal and poultry meat processing plants.

The province also has potential in minerals like feldspar and lead and sand and gravel for construction, meaning investors can develop processing industries.

It has an abundant workforce with more than 900,000 workers, 400,000 of them trained, to basically meet investors' human resources needs.

State's Vinachem to speed up equitisation

The State-run Viet Nam National Chemical Group (Vinachem) is to accelerate the equitisation of its affiliates and divest from non-core businesses in 2016, a senior company official said.

Deputy General Director Bui The Chuyen said Vinachem had realised 83 per cent of its equitisation plan in 2015, with five of the six target subsidiaries equitised and more than VND975 billion (US$43.7 million) collected in the move.

Meanwhile, it succeeded in divesting its capital from 13 of the 17 target enterprises, fulfilling 66 per cent of the set objective and taking back over VND674 billion ($30.2 million).

The group also admitted to certain obstacles to the equitisation of and divestment from some companies, and added that it suggested to the government that it consider some preferential treatment for Vinachem to speed up the work.

Equitisation and divestment are part of the restructuring of State-owned enterprises (SOEs), which constitute the economic restructuring scheme carried out since 2011. They aim to make SOEs more efficient and profitable.

The public investment and the banking system are also undergoing significant restructuring.

Ocean Mineral aims to buy shares

Ocean Mineral Investment Holding Company has asked the transport ministry to allow it to buy shares owned by Viet Nam National Shipping Lines (Vinalines) at Da Nang Sea Port JSC.

In a document sent to the ministry recently, the company expressed its desire to buy the entire shares of Vinalines at the business in lots, at the price under the country's regulations.

The company said if it was allowed to buy the corporation's shares at the port, it would focus investment in developing exploration capacity, reinforcing operation effect and competitiveness of Da Nang Port.

The Ocean Mineral Investment Holding Company, located in central Thanh Hoa Province, has a registered capital of VND560 billion ($25 million). It has recently put into operation three wharfs 3, 4 and 5 at Nghi Son international port, with total investment capital of VND1.6 trillion ($71.6 million). They were designed to receive vessels with tonnage of 30,000 deadweight and loading and unloading capacity of 4.5 million tonnes per year.

VCSC leads brokerage market

Ban Viet Securities Company (VCSC) led the local brokerage market in terms of revenue, earning VND336 billion (US$15 million) in 2015.

Meanwhile, Sai Gon Securities Inc, which is still the local leader in terms of market share, earned VND262 billion ($11.7 million) in revenue, a 11 per cent fall. Securities Corporation (HSC), the company with the second-largest brokerage market share in HCM City, earned VND292 billion ($13 million), down 12 per cent over 2014.

Most of the large securities firms in the market have reported fall in revenue in 2015, while Ban Viet Securities was among the few exceptions.

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