Low-cost carrier VietJet Air was responsible for the largest rate of cancelled and delayed flights in the last week to June 13, according to the latest report released by the Civil Aviation Authority of Vietnam.

Among 2,341 flights operated by Vietjet in the week from June 7 to June 13, 502 were delayed and 41 cancelled, accounting for 21.4 percent, the highest rate among four Vietnamese carriers – Vietnam Airlines, VietJet Air, Jetstar Pacific and Vasco.

Jetstar Pacific followed with 11.9 percent of its total 530 flights being delayed.

The national flag carrier Vietnam Airlines came third with 301 delays and 11 cancellations among 2,649 flights, or 11.4 percent.

Vasco had six cancellations and three delays out of 256 flights.

The four airlines operated 5,776 flights during the period, of which 887 were delayed and cancelled, accounting for 15 percent and 0.3 percent, respectively.

The CAA attributed the issue to late arrival of planes before they take off again for return services. This reason caused 70 percent of the delayed and cancelled flights during the reviewed period.

Bac Giang attracts 77 investment projects in five months

The northern province of Bac Giang drew 77 investment projects with a combined registered capital of 1.455 million USD in the first five months of this year.

As many as 53 of the new projects was invested by domestic firms worth over 26 trillion VND (1.15 billion USD), and 24 others are foreign direct investment (FDI) projects valued at more than 305 million USD.

Compared to the same period last year, the number of new projects was slashed by 10; however, total registered capital saw surges, with domestic investment nearly tripling and foreign investment hiking 18.8 percent.

To date, Bac Giang province is home to 1,197 projects, 913 of which has been invested by domestic businesses and are valued at nearly 80 trillion VND (3.5 billion USD). Meanwhile, foreigners poured over 4 billion USD into the remaining projects.

VietinbankSc to trade on HOSE from June 20
     
The HCM Stock Exchange (HOSE) has approved the listing of Vietinbank’s subsidiary Securities Company (VietinbankSc) at a starting price of VND10,950 per share (50 US cents).

HOSE said it approved the listing of 90.4 million shares on June 13, and that these shares would be available for trading on June 20, under the code CTS. The price fluctuation band on the first trading day is 20 per cent of the reference price.

After the VietinbankSc’s 2017 Annual General Meeting of Shareholders, the company passed its plan to transfer its shares from the Ha Noi Stock Exchange (HNX) to the HOSE.

Soon after on May 18, VietinbankSc registered to list all the shares on HOSE and cancelled the listing on HNX on June 15. During its last trading session on the HNX on June 14, CTS was traded at VND11,500 per share.

Recently, HOSE and HNX said that they maintained CTS stock in the VNX AllShare index basket during the suspension period (after its last trading day on HNX on June 14, until its first trading date on HOSE on June 20) to transfer VietinbankSc’s listing registration from HNX to HOSE.

Prices, volume indices and free float ratio of CTS during the suspension period will be the same as the figures during the last trading session on the HNX on June 14.

In the first quarter of this year, VietinbankSc recorded revenue of over VND59.6 billion from securities trading activities, up 36 per cent year-on-year. Pre-tax profit reached more than VND38 billion, up 59 per cent year-on-year, equivalent to 29 per cent of the yearly target. Net profit was estimated at VND30.8 billion, up 60 per cent year-on-year.

In 2017, VietinbankSc expects to pay a dividend of 8 to 10 per cent to its shareholders. 

BIDV’s pre-tax profit touches $140 million
     
The Bank for Investment and Development of Viet Nam (BIDV) has reported a pre-tax profit of VND3.2 trillion (US$140 million) in the first five months of 2017.

The figure meets 41 per cent of its annual target.

Of this, profit earned from services was around VND1.7 trillion, up 21 per cent year on year.

As of May 31, BIDV’s assets totalled around VND1.4 quadrillion, up 14 per cent from the beginning of the year. Its outstanding loans are estimated at VND188.6 trillion, up 17 per cent year on year, of which loans to small and medium enterprises rose by 9 per cent, to the agricultural sector was up 11 per cent, and to the support industry soared by 15 per cent.

Capital mobilisation rose by four per cent from the beginning of the year to touch VND820 trillion. Of this, capital mobilisation from the retail sector accounts for 56.9 per cent, standing at VND470.3 trillion, up 8 per cent from the start of 2017.

The ratio of non-performing loans (NPLs) fell from 2.14 per cent at the end of Q1 to 1.64 per cent. The proportion of short-term deposits, used to provide medium- and long-term loans, was 45.36 per cent.

BIDV Insurance Corporation (BIC), a subsidiary of BIDV, made a pre-tax profit of VND85 billion, up 9 per cent year on year, completing 45 per cent of its annual target. BIDV Securities Joint Stock Company (BSC) recorded a pre-tax profit of VND50 billion, fulfilling 55 per cent of its target.

Vegetable and fruit exports reach $1.4 billion
     
Exports of fruits and vegetables are estimated at US$1.4 biliion in the first five months of this year, a year-on-year increase of 40 per cent.

Of these, China, the US, Japan and South Korea markets account for nearly 84 per cent of total vegetable and fruit export value.

According to the Ministry of Agriculture and Rural Development, the restructuring process of agriculture sector is taking place strongly, with the export structure focused on advantageous commodities such as coffee, rubber and fruit.

Vegetable and fruit exports saw positive signals this year, said the ministry. From a modest export commodity, vegetables and fruits are experiencing spectacular growth to become a key export commodity that could reach $3 billion this year. 

PV Power wants strategic investors to buy shares

PetroVietnam Power Corporation (PV Power), a subsidiary of state-owned energy giant PetroVietnam, will sell 49 per cent of its stake later this year, with priority given to strategic investors.

The corporation is going ahead with the equitisation process, and its initial public offering (IPO) is planned for October, Hồ Công Kỳ, chairman of PV Power’s management board, said at a press conference on Wednesday while speaking about the company’s performance.

Equitisation is expected to be difficult in 2017 and 2018 as the three large oil and gas corporations will open IPOs this year. The volume of PV Power shares offered to the public will account for only four to five per cent of its capital; the rest will be sold to long-term strategic investors.

PV Power’s general director Nguyễn Xuân Hòa said 100 businesses have shown interest in acquiring the company’s stakes, and the corporation is considering 10 large investors from Japan, South Korea, ASEAN, the Middle East and the European Union.

PV Power, a wholly owned subsidiary of PetroVietnam established in 2007, is the second largest power producer in Việt Nam after the Electricity of Vietnam (EVN). It produces and sells electricity as well as repairs and maintains power plants. It also provides equipment and spare parts, sells coal to power plants and develops power projects.

The company has a chartered capital of VNĐ21.7 trillion (US$960 million). Currently, it is operating eight power plants, including four gas-fired power plants, three hydropower plants and one coal-fired thermal plant with a total designed capacity of 4,208MW.

In 2016, PV Power contributed 21 billion kWh to the national grid. The company plans to invest in nine gas-fired power projects and four coal-fired thermal projects with a total capacity of 10,000MW in the future.

Experts: Institutional and governance reforms decisive to Vietnam’s future

Institutional and governance reforms will decide Vietnam’s future as it strives to create a prosperous economy in the next two decades, according to experts at a conference on building a facilitative state held on June 13.

They agreed that Vietnam has come a long way, with many significant achievements after more than 30 years of economic reforms but also agreed that more is needed.

Deputy Minister of Planning and Investment, Nguyen The Phuong, said Vietnam is facing great challenges amid global and domestic economic uncertainties and building a capable and accountable state is both a task and goal in addressing those challenges.

Ousmane Dione, the World Bank Country Director for Vietnam, said Vietnamese leaders should seek to build a facilitative state consistent with the visions outlined in the Vietnam 2035 report, a joint project developed between the World Bank and the Vietnamese government.

For his part, former Minister of Planning and Investment, Bui Quang Vinh said Vietnam is increasingly lagging behind in terms of income and GDP, noting that despite the economy growing by 6-7% a year, the absolute increase is quite small.

He elaborated further, stating that Vietnam needs to find new motivations to drive growth, especially in the form of institutional reforms.

The former minister cited the Vietnam 2035 reported, in which it states that Vietnam is among the poorest performers in terms of government accountability and Vietnam’s rank on governance is lower than its income level, which is, in turn, equal to or lower than those of low-middle income countries.

He suggested a number of solutions, such as increasing the capability of the state, guaranteeing market principles in government decisions and reducing government intervention in economic activities.

In addition, he suggested that the provision of public services should be reformed so that the role of the government is shifted from that of being a producer and owner to being a provider, supporter and regulator.

At the conference, participants also discussed other important issues, such as enabling the private sector, reforming State-owned enterprises and leveraging digital transformation for an effective state-society relationship.

Salanganes housing union set up in HCMC

Vietnam Farming Association and Enterprise Agriculture set up a Salanganes housing union in Ho Chi Minh City with 52 members.

The union was established with 52 members hailing from central provinces, Southeast, HCMC and the Mekong delta who are breeding the bird to connect Salanganes breeders and help them to sell at proper price.
Moreover, the union will help build the country’s brand name and protect consumers by selling genuine products with high quality.

By the end of 2016, around 5,167 breeding houses are located in 39 cities and provinces with output of 42 tons a year, excluding 6 tons of Salanganes nest in sea islands a year.
Of 542 breeding houses in 19 districts in Ho Chi Minh City, 231 are located in Can Gio District producing over 6 tons a year.

According to experts in the field, Salanganes breeding will develop fast in the future. Output of nest increases 30 – 40 percent yearly, accordingly, it is expected that the country will have around 11,000 houses by 2022 with output of 250-300 tons a year.

HCMC proposes no new cement plants

The HCMC People’s Committee has proposed the Ministry of Construction to report to the Prime Minister about adjustment of cement industry development plan toward not building new plants in the city.

The plan for the phase of 2011-2020 with visions till 2030 should be changed toward no more new cement facilities comprising clinker plants and cement grinding plants.
Besides the city has proposed to remove existing cement plants out of the city according to a roadmap.
The city will permit construction of stations meeting environmental standards to receive and distribute cement in industrial parks to meet the market’s demand.

Automobiles unsalable despite price reduction

Although automobile prices have reduced 15-20 percent, many auto shops have seen unsaleable situation as customers have seemed to wait for import tariff cut to zero percent next year.

Since the end of 2016, auto companies have launched many promotional and discount programs to improve purchasing power. Of them, Truong Hai Auto Corporation has cut the price of Mazda by VND200 million. Kia and Peugeot prices have also reduced by VND30-95 million and VND30-70 million respectively since February.
Press information about price reduction of tens of auto brand names have caused customers hesitate to buy, slowing down the market.
The number of customers has dropped about 15-20 percent over the same period last year, reported Mr. Ngo Thanh Tri, head of Wester Ford outlet in An Duong Vuong street, Binh Tan said.
Ford Everest price has dropped VND46-135 million. Everest Trend 2.2L has slid to VND1.12 billion from VND1.25 billion. Honda CR-V has decreased VND90-115 million. A CR-V 2.4 AT TG is now sold at VND1.06 billion.
The price of three Camry versions has went down VND90 million to VND1-1.3 billion. In addition, Toyota Vios, Innova, Ford Focus and Honda Civic prices have reduced by VND50-80 million.
The price cut is not the policy of Toyota. It has been implemented by the company’s outlets to compete with other shops and reach sales target, according to a presentative of Toyota Eastern Saigon Company.
Experts in the auto industry said that the price drop is not only completely due to the coming zero percent tax rate but also many other reasons.
However, in fact auto prices have started sliding after the import tariff was cut from 40 percent to 30 percent from January 1, 2017 under the ASEAN Free Trade Area (AFTA).
With the 10 percent price cut, auto prices should slide from 5-7 percent. Still at present, it has dropped 15-20 percent. Not only automobiles imported from ASEAN but also products from manufactures in Vietnam and countries outside AFTA have reduced priced.
With the current trend, when tariff rate will be slashed to 0 percent next year, auto prices might continue sliding and demand will rebound. Still, a car’s total value might increase if tax and fee polices are changed, said a Western Ford representative.
Experts said that there are many factors affecting auto prices. For instance, if the Ministry of Finance adjusts value added tax, special consumption, corporate tax, environmental protection fees on petrol, road maintenance  and registration fees, car prices will be affected.
Dr. Tran Minh Ngoc, economic expert from Industrial University of HCMC, said that auto price reduction has depended on market mechanism excluding policies. According to surveys, auto prices in VIetnam are higher than the Southeast Asian region. For instance, the average price in Vietnam is twice higher than in Thailand and Indonesia.
Auto assembly and trading in Vietnam is highly profitable. Therefore, businesses have been forced to reduce prices to compete with import products which have enjoyed tax advantages.

Vietnam intensifies auto origin inspection from ASEAN, India

The General Department of Vietnam Customs has required customs divisions in provinces and cities to intensify inspecting the origin of automobiles imported from ASEAN and India.

According to an announcement by the Ministry of Industry and Trade on Thursday, automobiles from these two markets have been applied special preferential tax rates within the framework of free trade agreements which Vietnam has implemented.
Customs divisions have been asked to strengthen origin inspection over CBU (completely built unit) cars from ASEAN and India in line with the Ministry of Finance’s Circular 38, the Ministry of Industry and Trade’s circulars on Certificate of Origin to enjoy the tax incentive.
The inspection should also accord with the General Customs Department’s Decision 4286 on origin inspection process and writing guidelines by the Ministry of Finance.

Rice export price touches three year high

Rice export price has been increasing for the last couples of weeks, reaching the highest level since the end of 2014 as many regional countries have resumed importing Vietnamese rice.

According to the Ministry of Industry and Trade, the FOB (free on board) price of five percent broken product was US$390 a ton in early June, up $360-380 a ton over the end of May.
The price increase has been thanks to surging demand in the world market especially from Asian nations.
Experts forecast that the world rice price will further move up in the next three months. In Vietnam, many businesses have stepped up stockpiling, hoping the price to hit $400 a ton.
The export price hike has started pushing up rice prices in the Mekong Delta after a period of reduction. A kilogram of summer autumn rice is priced VND100-200 higher than a week ago.

Agro-forestry-aquatic exports hit US$13.7 billion in Jan-May

Exports of agro-forestry-aquatic products in the first five months of the year rose 9.5% to US$13.7 billion, according to a Ministry of Agriculture and Rural Development report.

The average coffee export price was US$2,267 a ton in the first four months of the year, a 33.5% rise over the same period last year.

Rubber rocketed a staggering 70% year-on-year to more than US$2,000 a ton. In January-May Vietnam exported 353,000 tons of rubber, down 1.5%, but the export value grew 61.5% to US$708 million.

Similarly, the country shipped abroad around 112,000 tons of cashew nuts worth US$1.1 billion, down 9.5% in volume but up nearly 13% in value. Revenue from vegetables exports rose 38% year-on-year to US$1.38 billion.

The pepper price plunged to a seven-year low of VND72,000-75,000 (US$3.2) a kilo in the Central Highlands on June 12. Therefore, a small number of local farmers slashed their pepper plants to make room for other crops of higher value.

They may grow rubber whose price has been on the rise. However, the Steering Committee for the Central Highlands Region has asked them not to expand rubber farming to avoid price risk.

Govt wants credit support for homebuyers, consumers

The Government has asked the central bank to coordinate with relevant ministries to present credit support policy for local homebuyers and consumers, reports the Government news website.

According to a resolution issued after the regular cabinet meeting in May, the Government requests relevant ministries to maintain macro-economic stability, contain inflation and create a foundation for sustainable development. The Government is sticking with the credit growth target of 18%.

The central bank and relevant ministries will have to find ways to mobilize gold and foreign currency from citizens to help bolster investment and socioeconomic development. The Government is also looking for credit policy in favor of local homebuyers and consumers.

The Ministry of Planning and Investment is tasked to oversee the monthly performance of each industry. Meanwhile, the Ministry of Finance will have to intensify the fight against tax evasion, especially by household businesses, to spur budget revenues.

Authorities will have to help enterprises deal with tax and fee difficulties, and manage prices of necessities and services well to ensure inflation is under control.

The Government has asked the Ministry of Industry and Trade to step up inspections into the operation of hydropower reservoirs to guarantee safety for people in low-lying areas and power supply during the dry season.

The Ministry of Transport is assigned to speed up key infrastructure projects, particularly the Long Thanh International Airport project and the expansion of Tan Son Nhat International Airport.

In addition, the ministry will have to work with the Finance Ministry over the possibility of lowering toll fees at some build-operate-transfer (BOT) toll stations on the basis of balancing the interests of the State, investors and road users.

Meanwhile, the Ministry of Construction will have to monitor real estate market developments. The ministry must submit a report on sand undersupply in some provinces.

The Ministry of Natural Resources and Environment must intensify inspections and take punitive measures against violators of the environmental protection law.

Deputy Prime Minister Truong Hoa Binh is tasked with overseeing the ban on new licenses for exploitation of sand in areas affected by salinity intrusion.

Stock market cap at 53% of GDP

The capitalization of Vietnam’s stock market rose to a record high of more than VND2,400 trillion at the end of May, representing 53% of the country’s gross domestic product (GDP), said the Ministry of Finance.

According to a finance and budget report announced last Friday, the stock market capitalization jumped 23.5% compared to late 2016. Meanwhile, the VN-Index and HNX-Index grew 10% and 18% respectively.

However, the ministry’s report made no mention of total indirect investment into Vietnam via the stock market.

A General Statistics Office (GSO) report said foreign investors conducted over 2,000 capital contribution and share acquisition deals with local companies between January and May, with a total investment of nearly US$1.79 billion.

Fresh investments, extra capital contributions and share purchases are part of foreign direct investment (FDI) inflows. The Government has announced figures on these investment activities since 2016.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, over 2,500 foreign institutions acquired shares at Vietnamese companies with a combined value of around US$3.4 billion last year, making up a majority of total FDI approvals of US$24.3 billion.

In the first five months of this year, new FDI approvals for new and existing projects amounted to US$12.1 billion, up 10.4% year-on-year, said GSO.

Vietnam budget deficit amounts to US$2.5 billion in Jan-May

The State budget deficit in the first five months of 2017 is estimated at VND56 trillion (about US$2.5 billion), the Ministry of Finance said on Friday.

State budget revenues in January-May totaled VND481 trillion, representing 39.7% of the full-year estimate and increasing 16.9% over the same period last year.

Meanwhile, budget expenditures in the five-month period amounted to nearly VND485 trillion, including VND76 trillion for development investment, VND45 trillion for debt payment and VND362 trillion for regular spending. Budget expenditures in January-May represented 34.8% of the projection and rose 10.1% over the same period last year.

By late May, G-bond sales had reached over VND103 trillion, meeting 53.2% of the plan. G-bonds had been issued to borrow VND33 trillion from Vietnam Social Security, 55% of the plan.

According to the Ministry of Finance, the Government has signed 10 loan agreements worth over US$750 million.

As of May 22, 2017, foreign loan disbursements had reached an estimated US$1.27 billion while loan payments for foreign countries from the State budget in the first five months had totaled US$650 million.

HCMC targets tourism revenue of VND170 trillion

The HCMC tourism sector is aiming for around VND170 trillion (US$7.5 billion) in annual revenue by 2020, accounting for over 11% of the city’s total gross domestic product.

The city is planning to develop tourism into an economic spearhead. This year the sector expects to achieve revenue of VND120 trillion (US$5.3 billion), a 16.5% rise over the previous year and well above the earlier-set goal of VND116 trillion.

The municipal government will be launching promotion programs, and developing new products and sites of interest such as agri-tourism, oriental medicine quarter, walking streets, music roads, and weekend markets.

Traffic infrastructure development is one of the city’s top priorities for obtaining the target. The local government is investing heavily in upgrading the Tan Son Nhat International Airport, and building new overpasses, tunnels and metro lines among others.

The city intends to improve the quality of water-based tourism products on the current routes of Binh Quoi and Nhieu Loc-Thi Nghe, and develop new ones in the rivers of Saigon, Dong Nai, Nha Be, Soai Rap, and Long Tau, and the canals of Ben Nghe, Kenh Te, and Tau Hu-Lo Gom.

About 450,000 tourists are projected to use those products next year. The figure is forecast to grow 15% in the coming years.

The city has an estimated 2,100 hotels and other lodging facilities with about 49,000 guest rooms, which are enough to accommodate more than 7.5 million international visitors a year. There are 1,200 enterprises active in the tourism sector in the city, with nearly 5,000 tour guides.

WMC to relaunch Vietnam House Restaurant early next month

Windsor Property Management Group Corporation (WMC Group), a hospitality and property management company, has announced the rebirth on July 4 of Vietnam House Restaurant at the corner of Dong Khoi and Mac Thi Buoi streets.

The restaurant will be located at its former site with a fully-renovated interior, which is expected to become an ideal destination for local and international gastronomers, and especially foreign tourists to the city.  

Diners will have the opportunity to savor traditional Vietnamese dishes with typical flavors of northern, southern and central Vietnam. All dishes will be prepared by Vietnamese-Australian celebrity chef Luke Nguyen who has enriched his knowledge and experience by traveling throughout the country to discover cuisine and culture of each region.

Bui Ta Hoang Vu, director of the HCMC Department of Tourism, told at a press conference last week that HCMC and Vietnam as a whole boast a diverse culinary culture as each part of the country has particular dishes with exotic ingredients and cooking styles. Apart from space for street food, the city needs to have luxury sites for Vietnamese food prepared in a meticulous and modern way.

In addition, Vu showed his high expectations that the resumption of Vietnam House Restaurant could contribute to the development of the city’s tourism sector.

Chef Luke Nguyen is well-known for his excellent cooking talent and strong passion for imparting culinary wisdom to the world. He is also the author of seven best-selling and award-winning cookbooks including Secrets of the Red Lantern, The Songs of Sapa, Indochine, Luke Nguyen’s Greater Mekong, Food of Vietnam, Luke’s Food of France and Street Food Asia.

He was picked to host the reality cooking show MasterChef Vietnam in the first and second seasons.

HCMC wants more decision-making power in multiple sectors

The People’s Committee of HCMC has asked the Government for the right to establish, restructure and disband administrative agencies depending on its actual social and economic development needs, and for more decision-making power in multiple sectors.

At a meeting on Saturday on the restructuring of public administrative agencies, which was attended by Deputy Prime Minister Vuong Dinh Hue, city vice chairman Tran Vinh Tuyen suggested the People’s Council of the city be empowered to decide the headcount of the city’s administrative organizations.

To improve the performance of the administrative agencies, the municipal government suggested the central Government issue a decree upgrading the city’s decision-making power in a range of sectors, including education, healthcare, culture, sport, tourism and media.

The city also wants to be empowered to decide the proportion of revenue retained for administrative agencies to raise wages in line with the pay raise roadmap of the central Government. 

According to a report of the city government, the city had had 1,871 administrative units by late 2016, up 106 compared to 2011, with a total headcount of about 119,000 staff.

Among these agencies, 172 are financially independent, 1,516 partly financially independent and the remainder wholly reliant on the State budget.

Vice chairman Tuyen said since public services such as healthcare, education and urban transport were opened up to the private sector 10 years ago, the city has raised huge amounts of capital for economic and social development.

The city has mapped out a plan for staff reductions for in 2015-2021 with an annual cut rate of at least 10%.

HCMC aims high for business development

The HCMC government has set many high targets for enterprises and business development in the city in the next five years.

Specifically, in the 2017-2022 period, the city aims for an extra 60,000 startups a year, a 10% increase in State budget revenue and a 5% rise in jobs.

In addition, enterprises are expected to spur capital, expand markets, and improve product competitiveness. Counterfeit and low-quality products and environmental pollution due to production activities will be controlled while contributions to funds for the poor are expected to increase.

In the first five months of this year, about 15,500 enterprises were established, up 10.4% year-on-year, with total registered capital of VND193.8 trillion (US$8.55 billion), up 54.2%.

The business environment has been improved greatly. The city government has created favorable conditions for household businesses to upgrade themselves to companies. Up to now, 413 family-run businesses have been converted into companies.

HCMC is now home to nearly 309,000 enterprises. The city is implementing many business supporting policies to take this number to half a million by 2020.

Shipping companies worried about price listing policy

Many seaport and shipping companies are worried about regulations on publicizing their freights and surcharges of ocean container shipping, and seaport charges, valid from July 1.

The Vietnam Maritime Administration at a conference held on June 8 to instruct shipping companies to implement Decree No. 146/2016 on the listing of above-mentioned charges stressed that seaport and shipping companies shall publish their service charges and can only collect charges according to the publicized prices.

Trinh The Cuong, head of the Maritime Transportation and Services Division under the Vietnam Maritime Administration, said the decree prevents seaport and shipping enterprises from collecting unreasonable charges from export-import companies.

A representative of the Vietnam Ship Agents and Brokers Association (VISABA) said many shipping companies have signed contracts valid until the end of 2017 or 2018 with different charges compared to listed charges. If the charges to be collected differ from the price frame, they may be subject to punitive sanctions pursuant to the new decree.

Cuong replied that the decree is applied to contracts signed after July 1 only.

A representative of the European Chamber of Commerce in Vietnam (EuroCham) wondered if the Vietnam Maritime Administration could control the implementation of the decree at thousands of seaport and shipping companies.

Cuong said the maritime agency has a taskforce responsible for this job with the support of information technology. Besides, the administration will divide ports into groups for easier control.

Bui Thien Thu, deputy head of the administration, said companies failing to list their service charges will be sanctioned according to regulations.

Articles 4 and 5 of the decree regulate that seaport and shipping enterprises must publish their service charges, inclusive of taxes and fees, on their websites and at their headquarters and transaction places. Shipping companies have to wait 15 days to apply new charges.

Home-made IC tech evaluated at VND290 billion

The integrated circuit and related solutions developed by the Integrated Circuit Design Research and Education Center under the Vietnam National University HCMC have been evaluated at VND290 billion, or over US$12.7 million, heard a press conference in HCMC on Wednesday.

The center is the first domestic agency to be successful in producing and commercializing circuit products. It was awarded a certificate recognizing the commercial value of its inventions by Pham Hong Bach, representative of the Vietnam Center for Science and Technology Evaluation, at the event.

The center’s IC products include 8-bit and 32-bit microprocessors, various semiconductor cores, and application products like electronic electricity meters, cruise control devices, radio frequency identification devices, and lighting systems.

The development of these products is being funded by the Ministry of Science and Technology and the HCMC Integrated Circuit Industrial Development Program in the 2013-2020 period.

With a value at VND290 billion, the center’s technology value is seen as a good fruit from an initial State investment of VND213 billion. Earlier, its revenues from technology transfers were more than VND68 billion, and its turnover of technology-based equipment manufactured at orders was VND31 billion.

Its chip products have been installed inside electronic electricity meters, global system for mobile communications modems, radio-frequency identification cards and readers, production management systems, and motorcycle black boxes.

The center’s director Ngo Duc Hoang said recent technology transfers are under non-exclusive agreements, so the Government does not lose the right to own these technologies. More importantly, these positive results help Vietnam become an integrated circuit producer, thereby promoting manpower training for the industry.

Meanwhile, the city’s vice chairman Tran Vinh Tuyen hailed the center’s determined efforts, noting that other technological products should be developed and commercialized as soon as possible.

A92 petrol will not be available from 2018

All cities and provinces across the country will stop selling A92 petrol and offer only E5 RON 92 and RON 95 fuels starting in 2018, said Deputy Prime Minister Trinh Dinh Dung.

At a meeting on the bio-fuel development scheme and the roadmap for application of a ratio for blending biofuels with traditional fuels, Deputy PM Dung said that RON 92 will be available alongside E5 RON 92 petrol on the market until the end of this year. 

The move is expected to contribute to the country’s energy security and environmental protection.

The deputy prime minister also approved a proposal of the Ministry of Industry and Trade to ask ministries, agencies and localities to implement two decisions on the foresaid scheme and the roadmap of the Prime Minister. The approval will facilitate fuel traders and relevant agencies to blend biofuels with traditional fuels.

The Ministry of Industry and Trade will have a feasible plan to replace RON 92 petrol by E5 RON 92 petrol and launch E10 petrol in the future. The ministry will also closely supervise the supply of biofuel and ensure the quality of E5 RON 92 petrol.

In addition, the ministry will cooperate with relevant agencies to control the operation of ethanol producers and help them overcome barriers.

Deputy Prime Minister Dung also assigned the Ministry of Finance to monitor fuel prices to make E5 RON 92 and E10 biofuel prices more competitive to consumers. The ministry must coordinate with the ministries of Agriculture-Rural Development and Industry-Trade to minimize the cost of ethanol used in blending biofuels.

The Vietnam Oil and Gas Group (PetroVietnam), the Vietnam National Petroleum Group (Petrolimex) and petrol traders and distributors have to ensure sufficient ethanol supply, expand the E5 RON 92 blending stations in the north and other regions and propose solutions to effective fuel replacement.

Previously, the Ministry of Industry and Trade has issued a pilot plan to replace A92 petrol with E5 RON 92 biofuel in HCMC and Hanoi from July 1, 2017. However, the ministry has proposed the Government replace A92 petrol with E5 RON 92 biofuel countrywide.

Korean investment in HCMC increasing

Many Korean enterprises, especially large ones, have plans to invest in HCMC which will prop up investment pledges by the East Asian country in the city in the coming time, said HCMC Chairman Nguyen Thanh Phong.

At a meeting on June 8 with Gangwon Province Governor Choi Moon-soon, who is paying a visit to HCMC, Chairman Phong said that South Korea is currently the fourth biggest foreign investor in the city, but the ranking is expected  to move up soon owing to a large number of imminent investment projects by Korean investors in HCMC.

Many Korean enterprises had expressed their keen interest in HCMC in the previous visit of the HCMC delegation to South Korea, Phong noted.

Phong said that the city is willing to welcome Korean enterprises including firms from Gangwon Province to do business here.

Enterprises from Gangwon Province can invest in biotechnology, health and power sectors in HCMC. The city authorities will create favorable conditions for Gangwon’s enterprises to operate in the city.

Governor Choi Moon-soon said that the province’s delegation representing many large corporations are visiting HCMC to sound out cooperation opportunities.

At the meeting, HCMC and Gangwon Province leaders also signed a memorandum of understanding on friendly cooperation between the two localities.

According to a report by the HCMC Department of Planning and Investment, 283 foreign investment projects were licensed into the city in the first five months of this year with total registered capital of US$342 million. South Korea was the largest investor with US$95.11 million, followed by Malaysia with US$45 million, Singapore with US$39.91 million and Japan with US$38.9 million.

Panasonic wins Vietnam Environmental Award 2017

Panasonic Vietnam, a provider of air-conditioning solutions to buildings, has received the Vietnam Environmental Award 2017 from the Ministry of Natural Resources and Environment for its stringent efforts and outstanding achievements in the cause of environmental protection.

During ten years of operation in the country, this is the second time the Vietnamese  Government has recognized the company’s practical contributions to raising environmental awareness among the young generation and joining hands with the community to protect the environment.

Notably, Panasonic Vietnam in partnership with the ministry, UNESCO, the World Wildlife Fund (WWF) and hundreds of schools nationwide has launched a series of environmental education programs for some 13,000 students since 2011.

Especially, staff members of Panasonic have joined forces with local residents in four provinces to plant over 70,000 trees as part of the annual tree-planting project themed “Panasonic for Green Vietnam”.

Masahiro Yamamoto, corporate planning director of Panasonic Vietnam, said environmental protection and sustainable development with green designs have been placed as the first priority in the company’s business operation since its establishment in Vietnam. The company has continuously created many environmentally-friendly products that help to save energy.

Vietnam Customs tightens controls on car imports

The General Department of Vietnam Customs has asked provincial customs agencies to strengthen checks on completely-built-up (CBU) auto imports from ASEAN countries and India to prevent any attempts to falsify certificates of origin by traders to enjoy low tariffs.

Local customs agencies are urged to take measures to verify the origin of CBU units subject to preferential tax rates under Vietnam’s free trade agreements with these aforesaid nations in line with the prevailing regulations.

If local customs officers suspect the validity of certificates of origin (C/O) and customs documents, they must send reports, together with relevant documents, to the General Department of Customs for verification.

While waiting for official replies, these imported autos will not be subject to preferential tax rates, but Most Favored Nation (MFN) duties instead.

Vietnam imported around 33,400 CBU autos in January-April, a 15.6% rise compared to the same period last year. Notably, the country spent US$219 million purchasing 12,000 autos from Thailand, up 19.9% and 18.7% respectively, according to customs data.

Besides, auto imports from Indonesia totaled around 6,000 units worth US$102 million, rocketing 5.3 times in volume and 7.6 times in value against the year-ago period. Meanwhile, imports from India reached around 5,000 units worth US$22 million, almost unchanged from the year-ago period.

The number of auto shipments from Thailand and Indonesia is forecast to be on the steep rise in the coming time, as the import duty on CBU units originating from the ASEAN will be slashed to zero next year from the current 30% under the tariff reduction roadmap of the ASEAN Trade in Goods Agreement, say market watchers.

The requirement is that CBU units must meet the localization rate of at least 40%. However, some importers have shown signs of committing trade fraud by providing inaccurate or fake C/Os.

In an effort to protect the interests of auto manufacturers and assemblers, Deputy Prime Minister Trinh Dinh Dung earlier asked the Ministry of Finance and relevant agencies to strengthen controls on the origin and taxable value of imported CBU cars.

Notably, the Deputy Prime Minister also demanded relevant agencies make a study about the possibility of applying trade safeguard measures, as car imports have surged sharply, threatening domestic production.