Vietnam sees full state exit from sugar mills by end 2017

The Vietnamese government has set a target to fully divest from sugar mills by the end of this year, which is aimed at raising the competitiveness of the sugar industry, a local newspaper reported on March 6.

The government has started reducing state stakes in domestic sugar refineries since 2014 and at present only has investment in one company, the Vietnam Economic Times newspaper quoted chairman Pham Quoc Doanh of the Vietnam Sugar and Sugarcane Association as saying.

He said the government has planned to sell all its 70% stake in the Vietnam Sugarcane and Sugar Corporation II by the end of this year to complete its divestment from the sugar industry.

"Thanks to (the divestment), production and business of the sugar industry will be the fairest compared with other industries," Doanh was quoted by the newspaper as saying.

Vietnam’s sugar industry, primarily based on sugarcane, is considered less competitive than Thailand, which ranks as the world's second-largest exporter of the sweetener.

Doanh said prices and the quality of sugarcane, rather than the processing technology, are placing Vietnam’s sugar industry behind Thailand.

Thai plants are buying a ton of sugarcane at US$26 while Vietnamese refiners have to pay US$40-US$53 a ton, and Thai sugarcane also has a higher sugar content, he said.

Vietnam refined 1.24 million tons of sugar in the cane crushing season that ended September 2016, down 12.7% from the previous 2014-2015 season, due to a drought and salination in the southern region. The sugar production year lasts from October to September.

The country's 2016-2017 sugar output has been projected to rise 13% to 1.4 million tons, the sugar association has said.

Freight trains to Europe to transit via Kazakhstan

A delegation from the Vietnam Railway Corporation (VRC), led by Deputy General Director Phan Quoc Anh, visited Kazakhstan recently, the Khorgos economic free zone, and Altynkol train station on the Kazakh-Chinese border.

Mr. Anh said he highly regarded the important role of Khorgos and the railway station at the border. “This trade route has great potential and is a connection between Southeast Asia and Europe,” he said.

He believes that ASEAN countries can link freight routes to Europe via Khorgos. “Vietnam has officially signed a free trade agreement with Eurasian Economic Union countries, which will facilitate Vietnamese goods going to Eastern and Western European countries,” he said.

“This year, Vietnam will see the first cargo shipment to Kazakhstan and Central Asia and Europe through Khorgos. At the same time, we plan to transport wheat and other Kazakh commodities by rail directly to Hanoi, not through the seaport in Lianyungang city in China.”

“We are very interested in Vietnam and we especially prefer container trains,” President of National Company Kazakhstan, Temir Zholy Amanzhol Ibragimov told  the Vietnamese guests.

On his earlier visit to Vietnam, Mr. Temir Zholy Amanzhol Ibragimov  met Minister of Transport Truong Quang Nghia and General Director of VRC Vu Ta Trung on February 20 to discuss transportation cooperation between the two sides and signed a Memorandum of Cooperation.

The Vietnam-EAEU FTA, which took effect on October 5, 2016, is expected to expand trade between Vietnam and the five EAEU countries: Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan.

Under the agreement, 90 per cent of tariff lines have been cut or reduced. Of those, 59 per cent were removed right after the agreement took effect, offering great advantages for Vietnam to compete with other countries in exporting to the region.

With a population of 183 million and a GDP of $2.2 trillion, along with increased consumption, the EAEU is a potential market for Vietnamese goods. The FTA will offer Vietnamese firms the opportunity to boost exports of garments and textiles and footwear, wooden products, seafood, fruit and vegetables, and coffee and tea to the region, thanks to lower tariffs.

Petrol prices cut down

Businesses have lightened RON 92 gasoline price by VND76 a liter to VND18,022  since 3 p.m. yesterday as per requirements by the Ministry of Industry and Trade and the Ministry of Finance.

Ethanol gasoline blend E5 slid VND58 to VND17,760. 

Diesel price inched up VND142 to VND14,447 a liter at the maximum, kerosene up VND76 to VND12,834 a liter while mazut oil moved up VND55 a kilogram to VND11,378. 

According to the two ministries’ request, contribution level to the price subsidization fund by petrol businesses remains unchanged to all gasoline and oil products. 

The fund’s spending reduces to zero dong instead of VND300 a liter of mineral and E5 gasoline as before.

Dak Nong to carry out bauxite project

The Dak Nong Aluminum Company under the Vietnam National Coal and Mineral Industries Group (Vinacomin) and relevant authorities recently announced the Nhan Co bauxite project in Dak Wer and Nghia Thang communes, Dak R’Lap district, the Central Highlands province of Dak Nong.

Mai Chien Thang, the company’s Deputy Director, said on March 7 that some 100 hectares will be zoned off for the project, 75 percent of which belongs to Nghia Thang commune. About 120 billion VND (5.26 million USD) will be splashed out for land clearance. 

Under a licence to exploit Nhan Co bauxite granted by the Ministry of Natural Resources and Environment, Vinacomin is allowed to engage in open cast mining activities in an area of 3,074 hectares in Kien Thanh, Dak Wer, Nghia Thang, Dao Nghia, Dak Sin, Nhan Dao and Nhan Co communes and Kien Duc town (Dak R’lap district).

Nhan Co mine has reserves of about 55 million tonnes of bauxite or over 155 million tonnes of ore. 

The plant has a total investment of 742 billion VND (32.7 million USD) and is designed to have an annual capacity of 4.5 million tonnes of ore.

Vinacomin is ordered to pay heed to labour safety and environment protection while carrying out the project.

Vietnam, Cambodia look to expand bilateral trade

Vietnam and Cambodia have officially signed agreements to promote bilateral trade and investment, although concrete details about how that will be accomplished have yet to be released.

The two countries have struggled to boost bilateral trade volumes and fell far short of their announced plan pursuant to the Cambodia-Laos-Vietnam Development Triangle to achieve US$5 billion in bilateral trade by 2015.

In 2014, trade between the two countries reached US$3.3 billion, only to fall to US$3 billion and US$2.8 billion in 2015 and 2016, respectively.

However, Tran Manh Tiep, second secretary of the Vietnam Embassy in Cambodia, has unveiled that the Vietnamese government has launched a trade-development plan that aims to build warehouses at strategic border crossings to promote regional trade.

In total, the plans call for 116 warehouses to be built as storage for imports and exports along the borders of Vietnam with Cambodian and Lao with a tentative completion date of 2035.

This will help to boost bilateral trade between Cambodia and Vietnam by having more trade activity along border, said Tiep. The initiative will make it easier to store and transport goods.

While he acknowledged that a few of the warehouses would be constructed in the near future, Tiep declined to disclose the overall budget for the plan or a detailed timeline for implementing it.

Nevertheless, its clear the warehouses will serve as vital points for the carrying out of customs procedures and inspections for compliance with food safety and quality standards.

Kim Savuth, president of Cambodian rice exporter Khmer Food Company, said the warehouse plan of Vietnam would benefit farmers, but could prevent agriculture in Cambodia from scaling up beyond raw material exports.

As a rule, Vietnamese businesses do not buy finished products from Cambodian farmers, said Savuth, noting they generally only buy raw products such as paddy rice and other commodities.

However, Hak Sovanna, president of the Cambodia Kampot-Takeo-Kep Chamber of Commerce, believes the warehouses would benefit the economies of both countries and tighten trade ties.

Sovanna added that the construction of warehouses by Vietnam will expand their ability for much larger bulk purchases than they historically have been making.

Sovanna noted that the plan for the warehouses is strong evidence that Cambodian agricultural crops woud continue to be in high demand by Vietnamese consumers. It might also signal Cambodian crops would someday be able to command a higher sales price than they do currently.

Meanwhile in other good economic news related to trade and investment between Vietnam and Cambodia, the Vietnam Rubber Group has announced it has now invested in 23 rubber plantation projects in Laos and Cambodia.

In addition, it has constructed  two latex processing plants in Ratanakiri and Kampong Thom provinces in Cambodia that have a capacity to produce 8,000 tons annually.

Lastly, Vietnamese company Hoang Anh Gia Lai has unveiled it has now planted 31,229  combined hectares of rubber trees in Laos and Cambodia.

Dak Lak to seek investment at upcoming conference     

Dak Lak Province will introduce 15 key projects that require investment from domestic and foreign investors at a conference to be held in Buon Me Thuot City on March 11.

These projects, expected to cost some VND22.7 trillion (nearly US$1 billion), will cover a wide range of sectors, including hi-tech agricutlure, industry, construction and tourism, baodautu.vn quoted the provincial Investment Promotion Centre as saying.

Statistics from the Foreign Investment Agency revealed that the province attracted only 13 foreign-invested projects, worth $136 million, as of February 20, ranking 51th among 63 localities nationwide in term of investment attraction.

To attract more investment, local authorities are offering a number of favourable policies and streamlining administrative procedures to provide optimum conditions for investors, according to the provincial Department of Planning and Investment.

The province has always considered administrative reform an important factor in attracting investors, the department said.

The province is deversifying investment promotion efforts, including regular meetings and interactions with large domestic and international companies to introduce local potential and investment climate.

Top priority is also being given to improving training for human resources, ensuring public order and creating conditions in which businesses feel secure about investing, it said.

Futher, Dak Lak is improving coordination with the Ministry of Foreign Affairs and relevant agencies, both at home and abroad, so that the province can accquire up-to-date information on its partners, ultimately optimising the promotion of investments, the department noted.

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 cu.m.

With nearly 540,000ha of agricultural land, the province grows high-value commercial crops, such as 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 such as feldspar, lead, 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. 

Australian minister applauds Vietnam’s economic reforms

The results of Vietnam’s “doimoi” (reforms) have been stunning, with average annual economic growth per person at 5.5 percent since 1990, among the highest in Asia, according to Australian Minister for Trade, Tourism and Investment Steven Ciobo.

Few countries around the world better exemplify the benefits of trade and investment liberalisation than Vietnam, the minister wrote in an article published on www.dfat.gov.au last week.

Ciobo said Vietnam is now a middle-income country with a population of 90 million, noting that the country has heavily invested in education and skills, reinforcing its favourable demographics, including a median age of 30.

“With the help of partners such as Australia, it is investing in transport infrastructure that will consolidate its favourable geography, notably its proximity to the growth engines of southern China and the world’s busiest maritime trading routes,” he added.

Commentors judge Vietnam as among the best of the emerging economies to escape the so-called “middle income trap” and follow a similar trajectory of the first Asian tigers like Singapore, the Republic of Korea and Taiwan. By mid-century, Vietnam is expected to join the world’s top 20 economies, he said.

Ciobo highlighted trade and investment liberlisation as the core of Vietnam’s growth. “Two-way trade is equivalent to 185 percent of Vietnam’s GDP. In a short period of time, clothing manufacturing has grown into a 40-billion-USD export industry, with Vietnam now the second largest supplier of apparel to the United States, Japan and the Republic of Korea. Samsung makes nearly a third of its smart phones in Vietnam. Foreign direct investment in Vietnam rose to record highs in both 2015 and 2016”.

He cited the fact that Vietnam is now Australia’s 15th largest trading partner, with bilateral trade exceeding 10 billion USD and Australian investment in Vietnam growing strongly. Australia sees tremendous potential for its businesses to gain market share in sectors such as agriculture, energy, financial services, education, tourism and health.

Australia is pursuing a strong innovation and education agenda with Vietnam and the Australian-Vietnamese community represents the sixth highest foreign-born population in Australia.

The minister noted as Vietnam prepares to host Asia-Pacific Economic Cooperation (APEC) leaders in central Da Nang city in November, Australia is working closely with Vietnam to drive economic connectivity and reduce trade barriers among APEC’s 21 member economies.

“Vietnam is one of the largest users of ASEAN-Australia-New Zealand Free Trade Area tariff preferences for Australia, and the two countries are involved in negotiations for a Regional Comprehensive Economic Partnership, a trade agreement that would cover over 30 percent of global GDP. While the United States has withdrawn from the Trans Pacific Partnership (TPP), Australia, Vietnam and other TPP members are working to ensure the benefits of the agreement are not lost,” he added.

He stressed that the time has come for Australia to take relations with Vietnam to a new level and encouraged Australian businesses to be part of Vietnam’s remarkable growth.

Minister for Trade, Tourism and Investment Steven Ciobo will accompany Australian Prime Minister Malcolm Turnbull to visit Vietnam during its APEC host year in 2017.

Opportunities for Vietnam to make inroads into Australia

The opportunities for Vietnam to tap the Australian market are huge if businesses create competitive products up to international standards, said experts.

According to the Ministry of Industry and Trade, Vietnam and Australia enjoy favourable conditions to boost economic and trade ties.

Two-way trade reached 5.26 billion USD in 2016, a year-on-year increase of 6.5 percent.

The Vietnamese trade office in Australia said Vietnam posted a trade surplus of about 480 million USD in 2016.

Growth was seen in camera and spare parts, iron and steel products, apparel and footwear materials, computers, electronic products and components, and interior decoration.

Australia has demand for Vietnamese staples such as garment-textile, footwear, seafood, and timber products.

It also imports Vietnamese lychees, which have enjoyed a surge in export turnover over the past two years.

The Vietnamese trade office in Australia noted that Australian consumers are open to imported goods and they care about quality, appearance and price.

The most urgent thing to do is popularise Vietnamese products and connect businesses with the market.

Australian importers do not accept products which fail to meet their quality standards and they attach great importance to long-term business partnerships.

Robert Chua, an Australian market consultant, said import demand in Australia is huge but Vietnamese products are not strong enough to dominate the market.

In fact, Australia imports various products from Asia-Pacific countries, including Vietnam, especially footwear and garment-textile.

Therefore, it is essential to improve quality management of manufacturing factories and abide by global criteria on plant protection drugs, dyes and food additives, experts suggested.

Businesses could invite quality control experts and skilled workers from Australia to work in Vietnam to popularise locally-made products, they advised.

Minister of Industry and Trade Tran Tuan Anh called on the two sides to exert efforts to drive bilateral trade forward, on par with their economic potential and comprehensive partnership.

The enforcement of the free trade agreement between ASEAN, Australia and New Zealand has helped increase Vietnam-Australia trade ties, creating a significant milestone in the two countries’ relationship, he added.

The Ministry of Industry and Trade will entrust its Import-Export Department to address difficulties via a hotline and simplify administrative procedures as well as promulgate documents to highlight opportunities and challenges from free trade agreements for businesses to help them boost exports, he said.

Since Vietnam and Australia normalised relations in 1973, bilateral ties have been reinforced by external affairs, trade, and economy.

Bilateral rapport has developed since the two nations set up a comprehensive partnership in 2009, especially in economy and trade.

Real estate transactions stall in February

Real estate transactions stalled in February due to the Lunar New Year holiday, according to the Ministry of Construction’s Management Agency for Housing and Real Estate Market. 

During the month, the capital city Hanoi recorded nearly 850 transactions, down 34.6 percent from January, mostly in mid and high-end apartment segments. 

Realty developers still put housing on the market with attractive promotions and works in prime locations broke ground. 

Major sellers included An Binh city in Bac Tu Liem district, Eco Lake View and Park View Tower in Hoang Mai district, Parkview Residence in Ha Dong district, Vinhomes Gardenia in Nam Tu Liem district and Vinhomes Skylake Pham Hung in Cau Giay district. 

In Ho Chi Minh City, successful deals hit roughly 900, down 35 percent month-on-month. 

High-end projects that sold well included Ha Do Centrosa Garden in district 10, Vinhomes Golden River in District 1, Lakeview City in District 2, and Dong Nam urban area in Thu Duc District. 

Mid-end and affordable apartments such as The Everrich Infinity in District 5, Phu Dong in Tan Phu District and I-Home in District 9 were also in demand. 

Experts forecast that the property market will continue to be stable this year thanks to effective State macro-economic policies.

Vietnam pepper faces difficult year

2017 is forecast to be a difficult year for Vietnam’s pepper, which has seen falling prices since the end of 2016, according to the Ministry of Agriculture and Rural Development (MARD).

MARD said the pepper price has decreased by 35,000 VND (1.6 USD) to 120,000 VND (5.4 USD) per kilogram in the provinces of Gia Lai, Ba Ria – Vung Tau, Dak Lak and Dong Nai, major pepper producers.

Do Ha Nam, President of the Vietnam Pepper Association (VPA), said pepper output has increased over the years and this has driven pepper prices down.

Vietnam is the world’s largest pepper exporter, accounting for 50 percent of the global pepper trade, meaning a change in Vietnam’s pepper output entail changes in prices.

According to the VPA, the demand for pepper will continue to increase in the world market and farmers should improve the quality of pepper.

In the first two months of this year, pepper exports reached 16,000 tonnes worth 112 million USD, down nearly 20 percent in quantity and 36 percent in value.

The United States, India, Germany and the United Kingdom are Vietnam’s largest pepper consumption markets, making up 41 percent of Vietnam’s total pepper export.

Property stocks expected to buoy market

The local stock market is expected to rise further this week with property stocks seen as the biggest contributors, said securities enterprises.

Nguyen The Minh from Saigon Securities Inc. (SSI) said in an interview with a news site at tinnhanhchungkhoan.vn that real estate, petroleum and securities stocks would be key market drivers in the coming time.

Property stocks have increased sharply since early this year with fundamentals predicted to improve in the future. Therefore, the sector would keep going up, Minh said.

Le Nguyet Anh, head of analysis at ACBS, however, said recent developments have indicated possible downside risks on both exchanges. In many sessions, the indexes briefly declined steeply and only large caps could end with a rebound.

In fact, except for property stocks, the outlook of most of other large caps is not positive. Therefore, it is risky to hold a high ratio of stocks now. Besides, cash flow is expected to find newly-listed stocks in the near term, she said.

The VN-Index enjoyed its best day of the week last Friday, rising 5.11 points, or 0.72%, at 712.62, after a three-day slump as financials including VCB, CTG, BID, STB and BVH, led the gains. Despite the nice increase, the index fell 0.3% for the first time in 10 weeks.

Foreigners net bought over VND235 billion of shares on the southern bourse during the week, down by nearly 26% against the previous week. On the northern exchange, they net purchased some 126,000 shares worth VND23 billion, falling 84% in volume but rising 166% in value from a week earlier.

FTSE announced that it would add FLC Faros Construction Company (ROS), Hoa Binh Construction Company (HBC) and Dat Xanh Real Estate Service & Construction Company (DXG) to its FTSE Vietnam Index in the first quarterly review of 2017.

FTSE will remove five other Vietnamese stocks, KDC, PVT, PDR, HVG and HQC, from the basket of stocks used for calculation of the index. The changes will go into force on March 20 after the close of business on Friday, March 17.

Besides, ROS and Hoang Huy Investment Financial Services (TCH) were added to the FTSE Vietnam All-Share Index while Hung Vuong Corporation (HVG) and real estate developer HQC were deleted.

Commenting on the results, Anh from ACBS said portfolio restructuring by exchange traded funds (ETFs) in recent times had brought bad news to the market.

Those stocks to be added to their portfolios usually have large supply volumes while those facing removal would be put under enormous pressure. Therefore, ETFs restructuring may be an impediment to the current market rises.

Taxman urges businesses to get tax audits done

The General Department of Taxation has called for enterprises nationwide to complete their tax audits by the end of this month. 

Cao Anh Tuan, deputy head of the department, told a meeting on personal and corporate income tax audits for 2016 last Friday that enterprises have three weeks left to finalize their tax audits.

Under the Ministry of Finance's Circular 166/2014/TT-BTC, taxpayers would be fined VND3.5 million (US$153) each if they are 90 days late for tax payment.

The department carries out inspections into some 18% of operational enterprises a year, Tuan said, adding income and deductions at many firms are found to be inaccurate.

According to the department, more than 99% of 570,000 enterprises in Vietnam currently do the online tax filing with tax authorities and 95% pay taxes electronically.

Around 9.2 million individuals authorize organizations and individuals to pay personal income tax while some 89,000 of them file the tax with tax agencies in person.

Revenues of corporate income tax and personal income tax in January-February this year amounted to VND34,000 billion and VND15,000 billion respectively.

Corporate and individual income tax collections this year are estimated at around VND188 trillion and over VND81 trillion respectively.     

Savills urges real estate investors to come to Vietnam

Real estate management service and consulting firm Savills has advised foreign investors to invest in real estate in the office, education and logistics sectors in Vietnam this year.

As the Asian property market is slowing, investors should look farther than first-tier cities to improve profitability, according to a press release issued last Friday.

Investors have analyzed risks and potential benefits in emerging markets such as Vietnam, Malaysia, the Philippines and Indonesia.

Savills said HCMC is one of the hottest office space markets in the region with occupancy at 97% in quarter four last year. The company predicted strong demand would remain as tenants are moving up to office buildings of higher quality.

Meanwhile, real estate investments in the education sector are expected to bring profit to investors. As the middle class is expanding, there would be greater needs for better education in Vietnam.

The logistics sector is opening up plenty of investment opportunities. Savills said the dynamic retail industry is being challenged by successful online retailers. Good warehouse and logistics locations to ensure an efficient supply chain and last mile delivery will be critical.

Work on Trà Vinh’s first high-tech shrimp breeding centre begins

Thông Thuận Group started the construction of a high-tech shrimp breeding centre in the southern Trà Vinh Province’s Trường Long Hòa Commune on Saturday.

The centre, which is being built at a cost of VNĐ95 billion (US$4.2 million), will be located on a 10.2-hectare plot and will have the capacity to produce 5.5 billion units of white-leg shrimp, tiger prawn and blue-claw shrimp varieties.

This is the first high-tech shrimp breeding centre in the province, which is expected to help households doing shrimp farming in sea waters and blackish waters.

Nguyễn Xuân Cường, minister of agriculture and rural development, hailed the province’s efforts in bringing in private investment for the centre, creating favourable conditions for agricultural restructuring and for exploiting the aquaculture potential efficiently.

He urged the investor to complete construction and start operations at the centre as per schedule, while taking care not to harm the environment.

The centre is expected to produce its first batch of high-quality shrimps in October this year.

Favourable conditions for Lao’s goods transit, Transport deputy minister says

Việt Nam will continue creating favourable conditions for the transit of Laos’ goods via Vũng Áng Port in central Hà Tĩnh Province, Deputy Minister of Transport Lê Đình Thọ said.

Thọ told this to Laos’ Minister of Planning and Investment Souphan Keomixay and Minister of Public Work and Transport Bounchanh Singthavong during their working visit to Hà Tĩnh Province on Sunday.

Thọ asked relevant agencies and the Việt-Laos Vũng Áng Port Corporation to operate and offer favourable conditions for Laos to transit its imports/exports via Vũng Áng Port.

The corporation was asked to become more proactive in helping Laos’ enterprises and shareholders manage and conduct operations at the port.

“Việt Nam will continue to assist Laos in operations at sea ports,” Thọ said, adding that in this month, the ministries of transport and planning and investment have begun developing a plan for better engaging Lao investors in infrastructure projects at Vũng Áng Port.

In 2001, Việt Nam and Laos started co-operation on investment and operations at wharves and service areas at Vũng Áng Port. Laos’ goods accounts for 18-20 per cent of total goods dealt with at the port, generating average revenue of US$2.6-3 million yearly.

Đắk Nông increases aid to coffee farmers

The Central Highlands province of Đắk Nông is providing better access to loans and training courses to farmers in an aim to increase productivity and quality of coffee farms.

Lê Trọng Yên, director of the province’s Department of Agriculture and Rural Development, said authorities would help farmers understand the importance of sapling quality and provide information about sources of capital.

Farmers will also be taught how to make adjustments to ensure the sustainable cultivation of coffee trees.

Most of the farmers have been taking part in a coffee replantation programme begun in 2012.

To help them access loans, the province will simplify paperwork procedures.

It will also ensure the quality of seed strains and fertilisers, and offer training courses so farmers can raise the output and quality of coffee.

Buds from old, but still good, coffee trees will be grafted on to other trees to increase yields.

Đắk Nông has more than 125,000 hectares of coffee.

Of the total area, commercial coffee farms account for 113,000ha, at an average productivity of 2.2 tonnes per ha and annual yield of 250,000 tonnes of coffee, according to the department.

In 2012, the province kicked off the programme to grow new coffee strains with higher productivity and higher quality.

The aim was to replace old, stunted coffee trees. By the end of last year, the area of new coffee trees that had replaced old ones had increased by 8,000ha.

Since 2012, farmers have invested capital to plant 4,450ha of coffee trees, and the local government has provided funds to farmers to plant saplings in the remaining area.

At the same time, owners have grafted buds from old coffee trees on an area totalling about 1,000ha.

Nguyễn Văn Chương, deputy director of the province’s sub-department of plant protection, said many new coffee farms had begun to develop harvests with a high yield.

However, the programme has been carried out slowly.

Demand for coffee seedlings is high, but the province does not have a certified coffee nursery.

Along with the lack of coffee seedlings, farmers have found it difficult to borrow money from local banks.

As of February, farmers in the programme had received a total of only VNĐ38 billion (US$1.7 million) from the Đắk Nông branch of the Việt Nam Agriculture and Rural Development Bank.

About 30 per cent of the province’s old coffee trees have been cut down and replaced under the programme.

By 2020, Đắk Nông aims to have a total of 30,000ha of new trees. Of the total figure, old trees will be replaced with new ones on 20,500ha, while bud grafting on old trees will be done on the remaining 9,500ha.

Int’l Woman’s Day boosts sales  

Since flowers remain among the most popular gifts, florists have introduced new bunches at prices ranging from a few hundred thousand dong to over VND1 million (US$43.8). — Photo vietq.vn

 Tran Thanh Tu of HCM City was choosing gifts for his mother and wife for International Women’s Day, March 8, at a shopping mall in District 5.

“Last year I gifted my mother a perfume and my wife a lipstick. This year I plan to buy a skincare product for my mother and a bracelet for my wife.

“[They] will be happy.”

He is not the only one buying gifts.

Since flowers remain among the most popular gifts, florists have introduced new bunches at prices ranging from a few hundred thousand dong to over VND1 million (US$43.8).

An employee at an orchid shop on Nguyen Van Troi Street, Phu Nhuan District, said moth orchids are the bestselling item at her shop.

These flowers can last for up to four weeks and cost from VND250,000 a pot.

Shops at Ho Thi Ky Flower Market have increased supply and hired more people to arrange and deliver flowers to meet the higher demand.

Most supermarkets and shopping malls in the city are offering a wide range of gifts and services to satisfy all kinds of needs.

Big C supermarket is offering discounts of up to 49 per cent on more than 1,000 items, including skincare and hair care products, cosmetics, fashion products, and accessories under its “Ton vinh ve dep Viet” (honouring Vietnamese beauty) programme.

Korean supermarket chain Lotte Mart is also offering discounts of 5-49 per cent on more than 1,000 beauty and healthcare products besides gift boxes.

Women customers will also be offered free consultancy on make-up, skin care and hair care at the two supermarkets.

Co.opmart and Co.opXtra supermarkets are offering big discounts on food and cosmetics.

Jewellery companies like SJC and PNJ have introduced new collections and launched promotions.

The Phu Nhuan Jewelry Joint Stock Company has launched a ‘Luxury Gift Collection’ featuring gold and precious stones.

Customers have the chance to win 10 taels of Tai Loc (Good fortune) gold and 100 vouchers worth VND1 million each from a lucky draw on the occasion.

Fashion and cosmetics shops are offering attractive discounts. 

Catfish exports to US decline

Tra fish (Catfish) exports to the US dropped sharply by 22.27% to US$9.55 million during the first half of January, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

If the export growth continues to slow down, Hong Kong and China may replace the US to become key consumers of Vietnam catfish, VASEP forecast.

In last December, exports to the US just reached US$33.2 million, US$1 million lower than the export value got from China.

According to statistics from the Food and Agriculture Organization (FAO), US imports of frozen catfish fillets gradually increased during the first half of 2016 with around 8,000-12,000 tons per month. The import price was US$2.65-3.25 per kilo, but as from August it began to decline to US$2.76 per kilo and even to US$2.6 per kilo in September.

The US Department of Commerce reported that US catfish import value fluctuated last year and hit a record high in February. However, it might be reversed in the same month this year.

VASEP predicted Vietnam catfish exporters would face more challenges and difficulties on the US market this year because of high anti-dumping duties, the US catfish inspection programme and some other trade barriers.

Vietnamese pharmacy firms cash in on nutritional supplements

Many major pharmaceutical companies in Vietnam, one of Asia's top beer consumers, have stepped up selling liver supplements to boost their profits, company reports and a brokerage said.

Duoc Hau Giang, Vietnam’s largest pharmaceutical company, reported that revenue last year rose 4.8% to VND3.78 trillion (US$166 million) from 2015, fuelled by a surge in sales of liver supplements, Ho Chi Minh City-based Rong Viet Securities Co cited the firm's financial statement as showing.

About 2% of the revenue last year came from liver supplements, which surged 114% from 2015 to VND89 billion. 

The company planned to more than double sales of liver supplement brand Naturenz to VND800 billion, accounting for 12% of total revenues in the next five years.

In pill form, liver supplements marketed for detoxication and supporting liver functions have become big business for local pharmaceutical companies, Rong Viet Securities said.

Some major pharmaceutical companies have gradually reduced their antibiotics business in favor of other medicines, including supplements, in hope for greater profits.

Hau Giang’s revenues from antibiotics fell to 40% of the firm's revenue last year, from 45% in 2008, based on financial reports. It has projected the antibiotics sales to fall further to 38.5% of revenue by 2020.

Traphaco, Vietnam's second-biggest listed pharmaceutical company, reported that sales of its liver detox brand Boganic had doubled within a five-year period to VND200 billion in 2015 and that the sale has been rising 16% annually in recent year.

Each Vietnamese person drank on average 42 liters, making the country Asia's third biggest beer consumer after Japan and China, and Vietnam ranks among the world’s top 25 heaviest beer drinkers. Demand for liver detox has been rising in line with higher consumption of alcoholic drinks.

Over the past five years, Vietnam has doubled its beer consumption to more than 3 billion liters per year. Last year it produced an estimated 3.8 billion liters of beer, up 18% from 2015, based on government data. Its well-known export brands include Bia Saigon and 333.

The country has projected beer production to rise to 4.1 billion liters in 2020, based on a Industry and Trade Ministry plan. 

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