Mooncake output and prices higher than last year

To prepare for this year’s Mid-Autumn Festival on the 15th of the eighth lunar month, which falls on October 4, local confectionary makers have launched mooncakes with output and prices higher than last year.

Phan Van Thien, deputy general director of Bibica Joint Stock Company, said his firm will market 60 types of mooncake totaling 600 tons, a year-on-year rise of 10%. Due to rising input and manpower costs, Bibica mooncake prices will inch up 3% to VND37,000-150,000 a cake.

Nguyen Anh Trung, deputy general director of Givral Bakery Company, said Givral will launch 550 tons of mooncake, up 20% over last year, with prices picking up around 5% because of the same reasons as Bibica’s. The company has already made 190 tons available.

Notably, Givral will bring its mooncakes to Laos and Cambodia for the first time. Trung said the company will sell 3,000-4,000 cakes with prices ranging from VND37,000 to VND150,000 each.

A source from Brodard Bakery in HCMC told the Daily that the company will launch one million cakes totaling 250 tons on the market, with prices 5% higher than the same period last year.

Huynh Cam Binh, marketing director of Dai Phat Group, said the company will turn out 500 tons of mooncake, up 35% year-on-year, on stronger demand. Its prices will also edge up 3% as employees are paid higher.

A source from Mondelez Kinh Do said the company will ship some kinds of mooncake to China and the United States.

Meanwhile, Mondelez will introduce 84 types of mooncake with many new flavors to suit different customer tastes. They will be sold at VND40,000-VND3.2 million each.

In addition to famous mooncake brands, homemade products have been selling well. For instance, Phan Thuy Trang, who advertises her mooncakes on her Facebook page, told the Daily that she has sold around 200 cakes of different kinds and has secured orders to provide 250 cakes. She looks to sell a total of 1,500-2,000 cakes with prices ranging from VND80,000 to VND125,000 each.

Besides local mooncakes, customers have begun paying special attention to Hong Kong and Malaysian products. Each box of eight cakes costs VND1 million to VND2 million.

Low global demand drives down rice price

Low global demand has sent the rice price in Vietnam declining as the summer-fall rice crop has ended, said rice traders.

The free-on-board (FOB) export price of 5% broken rice fell slightly from US$385-395 to US$385-390 a ton last week.

According to a Ministry of Agriculture and Rural Development report on farm exports, Vietnam exported 3.96 million tons of rice worth US$1.75 billion in the first eight months of 2017, up 20% in volume and 17.5% in value year-on-year. However, the average rice export price decreased 2% to US$440 a ton in January-July.

China remained the largest rice buyer which accounted for 40% of Vietnam’s total export volume.

The same situation was also seen in other leading rice exporting countries in Asia such as Thailand and India.

Thailand sold 5% broken rice at US$370-375 per ton last week compared to the US$375-377 range in the previous week. The price fell due to large supplies in the new crop.

Thai rice traders have forecast the price will continue falling next week but then stabilize until October.

The parboiled rice price in India, the largest rice exporter in the world, declined by US$3 to US$400-403 a ton as its currency grew stronger.

Rice traders in India said they could not reduce the price below US$400 a ton. Indian rice export may slow down in the coming months due to its uncompetitive prices.

Meanwhile, Bangladesh plans to purchase about 250,000 tons of white rice from Cambodia at US$453 a ton under a government-to-government (G2G) contract. Previously, Bangladesh has imported 200,000 tons of white rice at US$430 a ton and 50,000 tons of parboiled rice at US$470 a ton from Vietnam.

Bangladesh’s strong demand for rice has had an upward impact on global rice prices this year. The South Asian country has been trying to replenish its rice stocks to lower rice prices since the April flooding caused losses of a million ton of rice.

Ministry says will relax rice export regulations

The Ministry of Industry and Trade is seeking to abolish many regulations on rice export activities to make rice trade easier for exporters. At the same time, the ministry will narrow down the exclusive right of the Vietnam Food Association (VFA).

The ministry has completed collecting opinions of relevant agencies about a draft Government decree which will replace Decree 109/2010/ND-CP of the Government on rice export business.

Accordingly, most barriers in the rice trade will be removed, especially those excluding small traders from the competitionThese include quantitative restrictions such as a regulation that a rice trader must have at least a warehouse able to store at least 5,000 tons of rice, and at least a rice mill with a capacity of at least 10 tons of rice an hour. The warehouses and milling facilities must be located in provinces or cities from which rice is exported.

In fact, some enterprises exporting a small volume of high-quality organic rice cannot meet the above-mentioned conditions, such as Co May Pri

vate Enterprise in Dong Thap Province and Vien Phu Trade and Production JSC in Ca Mau Province.The ministry will also eliminate the requirement for locations of warehouses and mills as it creates difficulties for localities and traders in rice export and shows the administrative intervention in an enterprise’s decision-making process.

The regulation on rice storage will also be relaxed. According to Decree 109, rice exporters must store a volume of rice equivalent to at least 10% of their total exports in the previous six months. The Ministry of Industry and Trade proposed decreasing the proportion to 5% as the rule causes overstocking and higher costs.

Enterprises also found procedures for registration of rice export contracts complicated. Shortcomings of the VFA during the registration of export contracts make enterprises anxious about their business information being leaked, so the regulation on rice export contract registration with the VFA should be scrapped.

The rule on the floor export price of rice will likely be removed as well because rice prices change unpredictably.

The draft decree does not stipulate the sizes of a warehouse and rice husking mill provided that they meet technical standards issued by the Ministry of Agriculture and Rural Development. In addition, traders will not be forced to have rice husking facilities.

The ministry has also amended and supplemented several regulations to facilitate rice export activities such as the abolition of procedures for inspecting traders in meeting business conditions. Instead, traders will provide information and take responsibility for their claim of meeting business conditions.

The role of VFA will also be narrowed down. According to the current decree, only VFA has the right to decide on rice export under government-to-government (G2G) contracts and distribute benefits to its member enterprises. The regulation may create unfair advantages for other export companies.

Therefore, the ministry has limited the managerial responsibilities of VFA so that the association can distribute 80% of G2G contracts in line with regulations stated in the decree.

The ministry said new regulations on rice export activities will make life easier for traders and reduce market entry costs so that traders can improve their business competitiveness and product quality to boost consumption.

Vietnam currently has 140 rice exporting firms. In 2016, the country shipped rice to 150 countries and territories.

Can Tho eyes expanded ties with Australia in hi-tech agriculture

The Mekong Delta City of Can Tho hopes to expand cooperation with overseas partners, including those from Australia, to improve production capacity as the city sets out to be a regional pioneer in hi-tech agriculture.

The statement was made by Vice Chairman of the municipal People’s Committee Truong Quang Hoai Nam in a meeting with Rob Gordon, CEO of food producer and exporter Sunrice from Australia, on September 7 where they discussed ways to boost the city’s rice production and exports.

Can Tho lies in the heart of the Mekong Delta, Vietnam’s largest rice basket, and exports more than half a million tonnes of rice worth 300 million USD on average annually, said Nam. The region’s rice exports were estimated at more than 400,000 tonnes in the first eight months of 2017, an increase of 3.9 percent from the same period last year, earning 190.8 million USD, up 10.1 percent, he noted.

The city aims to lead the region in hi-tech agriculture to reduce cost and enhance productivity and quality of farm produce, he said, adding that it looks forward to fostering ties with foreign companies, particularly from Australia, to access new agricultural technologies and more markets in Europe, North America and North Asia.

For his part, Gordon said Vietnam is capable of gaining a larger market share in these markets thanks to its competitively priced rice compared to rivals in the region, with Vietnamese rice selling for 300-400 USD per tonne less than Thailand’s.

He suggested that the firm will assist Can Tho in developing supply chains in rice farming. He also noted that the firm is interested in some local hi-tech agricultural projects.

Welcoming the proposal, Nam vowed to work with local state agencies to support Sunrice.

Coal prices: Power generator, coal company reach agreement

The Electricity of Việt Nam (EVN) and its coal supplier Việt Nam National Coal and Mineral Industries Group (Vinacomin) have finally reached an agreement on coal selling prices for power production.

The agreed price, which has not yet been disclosed, has come into effect from September 1, according to the Ministry of Finance.

Earlier, the relationship between EVN, the country’s largest power generator, and Vinacomin, a long-time coal supplier of EVN, became tense when EVN revealed its plan to reduce coal purchased from Vinacomin, the country’s largest coal miner, explaining that the group wanted to buy products at reasonable prices which fitted its power generation technology.

EVN was then seeking the Government’s permission to move forward with the plan, according to which it looked to reduce its coal purchase to 17.92 million metric tonnes, a two-million-tonne drop from its previous plan.

Vinacomin immediately expressed its opposition to EVN’s proposal, claiming it would make Vinacomin’s coal production costs increase and reduce effectiveness.

Besides this, the corporation would have to lay off 4,000 workers to make up for the financial losses if EVN went through with its plan to cut coal purchase.

Vinacomin requested intervention by the Government and relevant ministries to convince EVN to avoid purchasing coal from other units this year to avoid losses for Vinacomin.

In addition, claiming unfairness in taxes and fees, Vinacomin said the Ministry of Industry and Trade (MoIT) should have policies to encourage use of locally produced coal and limit imported coal.

“Under no circumstance should EVN stop buying coal from Vinacomin to purchase coal from foreign suppliers”, a representative of EVN said.

It was the high coal prices that had forced EVN to cut coal bought from Vinacomin. High coal prices would make electricity production cost increase and force the power sector to bear huge losses, he added. Therefore, instead of buying from Vinacomin, EVN would consider buying coal from other domestic companies at more reasonable prices, he added.

At a recent meeting, Minister and Chairman of the Government Office Mai Tiến Dũng requested that the MoIT and related agencies urgently implement solutions to consume Vinacomin’s coal inventory.

Dũng said Vinacomin should also take measures to lower cost and increase competitiveness. For example, imported coal dust is priced at just VNĐ1.4 million to 1.6 million (US$61-70) per tonne, while the price of coal produced by Vinacomin is VNĐ500,000 higher per tonne, he said.

Ford announces annual sustainability report     

US auto manufacturer Ford Motor Company, has released its 18th annual sustainability report, including a short film, that details environmental progress at its operations around the world and a commitment to further enhance sustainability actions in the future.

The company said the pace of economic development in Asia over the past 25 or more years has been remarkable, creating exciting new opportunities for hundreds of millions of people, but decades of manufacturing-led growth has also come at a price, with environmental challenges now confronting the region.

Now as governments, communities and individuals rise to meet this new challenge, the company’s new report details how Ford is leveraging key learning from its leading environmental practices around the world to its operations in Asia Pacific.

“One of the key reasons for this is that they benefit from all that we’ve learned over our more than 100 years of Ford manufacturing history,” said Andy Hobbs, global director of Ford’s Environmental Quality Office. “Many of our plants in Asia Pacific are less than a decade old, so this has allowed us to apply everything we know about sustainability from other operations around the world.”

“When our plants were built in Asia Pacific, we dictated the specifications to ensure we protect natural resources,” he added.

Since 2000, Ford has published its sustainability report to track the company’s comprehensive approach to managing issues related to climate change, air quality and conservation, as well as to identify opportunities that can have a significant impact across the business, from water stewardship to supplier training and education.

The 2016-17 Ford Sustainability Report highlights key environmental performance indicators in Asia Pacific, including: slashing water consumption by 50 per cent, achieving zero waste to landfill, driving innovation across the business, working with the supply chain, and being a responsible business. 

Song Da Corp to divest from hydroelectricity companies     

Construction giant Song Da Corporation announced recently that it would be selling its stakes in several hydroelectricity companies in October.

Song Da, which holds a stake of 0.92 per cent in Ho Bon Hydroelectricity Joint Stock Company, plans to sell its 216,000 shares at an initial price of VND10,400 (US$0.45) per share. The auction will be held on October 3 at the Ha Noi Stock Exchange. Ho Bon has a charter capital of VND235.4 billion.

On the same day, Song Da will also put on auction its entire 558,000 shares, or 1.3 per cent stake, in Nam Muc Hydroelectricity at an initial price of VND10,300 per share.

Founded in 2007, Nam Muc was connected to the national grid in 2015, and its revenue has jumped from VND98 billion in 2015 to VND155.5 billion in 2017. However, the company reported a loss of VND5.4 billion in 2016 and is forecast to incur a loss of VND4.25 billion this year.

Previously, Song Da was planning to sell 16.27 million shares of Huong Son Hydroelectricity, but the divestment process has not been completed.

The corporation is also divesting from the Southern Power Investment and Development Joint Stock Company (SEB). Currently, it owns 1.21 million SEB shares, or 6.06 per cent of the company’s charter capital.

In July, the Prime Minister approved the equitisation plan for Song Da Corporation, allowing it to sell parts of State-owned capital and issue shares to increase its charter capital to VND4.5 trillion.

Accordingly, Song Da will launch its initial public offering (IPO) of 450 million shares at VND10,000 per share, with the state retaining 229.5 million shares, or 51 per cent of the charter capital, until the end of 2019. The State capital will be reduced to below 50 per cent of the charter capital in 2020.

SBV provides guidance on vehicles used as bank collateral     

The State Bank of Viet Nam (SBV) has officially guided credit institutions on granting a legal confirmation in written document for vehicles used as bank collateral.

According to Document 7000/NHNN-PC, credit institutions and branches of foreign banks receiving the collateral of vehicles, or mortgagees, will have to grant a mortgage receipt for borrowers, or mortgagors.

In cases where the mortgagors violate the obligation to pay debts secured by vehicles, mortgagees and mortgagors will have to reach an agreement.

The validity term of the mortgage receipt must be agreed to by mortgagees and mortgagors, but must not be beyond the effective term of the mortgage contract.

The renewal issuance of a mortgage receipt is made in two cases, when the mortgage receipt is damaged, or when information on the mortgage receipt needs to be changed.

Credit institutions must co-operate with the traffic police in information exchange when required.

The move was made after the SBV received multiple complaints from credit institutions and companies recently, stating that the traffic police refused to accept copies of vehicle registration certificates in place of the originals, which had been submitted to secure loans.

Further confusion arose when a bank-issued confirmation of the vehicle’s use as collateral was also not accepted by the traffic police.

The situation has inconvenienced creditors, banks and other credit institutions, as not holding the original documents of collateral ownership increases risks to them, which may lead to them ceasing to accept automobiles as collateral.

This would make it harder for citizens and businesses to get loans, while at the same time not allowing credit institutions to hold either the collateral or its certificate of ownership incurs significant risk.

To deal with this, on August 15 this year, Deputy Prime Minister Truong Hoa Binh issued a decision, allowing drivers to use a certified copy of vehicle registration certificate and the original mortgage receipt granted by credit institution, in lieu of the original of the vehicle registration certificate for movement on the Vietnamese territory during the time the credit institutions hold the original.

The Deputy PM also entrusted the SBV to grant the above mortgage receipt. 

Vietjet offers 700,000 discounted tickets at ITE HCMC

Vietjet is giving away 700,000 promotional tickets at the 13th International Travel Expo HCM City (ITE HCMC), which is taking place at the Saigon Exhibition and Convention Centre.

The airfares, available from noon to 2pm until Saturday, have prices starting at zero đồng. They are applicable on all domestic routes from October 1, 2017 to December 31, 2017, and international routes from October 2017 to August 31, 2018.

During the expo, visitors can also participate in lucky draws and stand a chance to win free return air ticket to domestic and international destinations, besides taking part in Vietjet’s games to win amazing gifts.

Endorsed by the People’s Committee of HCM City, the Ministry of Culture, Sports and Tourism and other agencies, ITE HCMC is a large national event that has regional influence and is significant for both Việt Nam in general and HCM City in particular. The event, which run until Saturday, is expected to attract over 350,000 visitors.

Steering Committee for development of collective economy launched

The Steering Committee for Renewal and Development of Collective Economy was launched at the Government Office on September 7 in accordance with a decision signed by Prime Minister Nguyen Xuan Phuc on March 22, 2017.

According to the decision, Deputy Prime Minister Vuong Dinh Hue is appointed as Head of the committee while three deputy heads including Minister of Planning and Investment Nguyen Chi Dung, Minister of Agriculture and Rural Development Nguyen Xuan Cuong and Chairman of the Vietnam Cooperative Alliance Vo Kim Cu.

The Steering Committee also includes 20 members who are leaders from ministries, sectors and agencies under the Government, National Assembly, Vietnam Fatherland Front, among others.

The committee is assigned to carry out research and propose policies and solutions for the Government to renew and develop collective economy and cooperatives.

It also takes charge in coordinating activities between ministries, sectors, central agencies and localities in the implementation of projects and plans on collective economic development.

Vietnam now has more than 19,570 cooperatives with more than 6.3 million members. Of that total, more than 10,700 are agricultural cooperatives and over 4,300 are industrial-craft cooperatives, among others. The average revenue of a cooperative is approximately VND3 billion (US$132,000) per year.

Japanese investors eye Can Tho     

Can Tho wants to partner with the Japan National Tourism Organisation to promote its tourism potential and attract more international tourists, an official from the Cuu Long (Mekong) delta city said.

At a meeting with officials from JNTO’s Viet Nam office on Tuesday, Truong Quang Hoai Nam, deputy chairman of the city People’s Committee, said the city still faces some challenges in promoting tourism, which it considers a key sector.

As a result, though Can Tho is a socio-economic hub of the delta and known for its diverse tourism products, its tourism sector has not yet fulfilled its potential.

Last year Can Tho received more than 5.3 million foreign tourists but only a third chose to stay overnight.

This year more than 5.4 million have visited Can Tho with only 1.35 million staying on.

Nam blamed this on a “shortage of international flight routes, international-standard attractions and big investors who are capable of investing in high-quality tourism projects.”

To give a boost to the tourism sector, the city needs to form partnerships with cultural-tourism organisations in the region, he said.

Nam said the city is soliciting investment in the many hillocks along the Hau River, including Son Hillock in Cai Rang District where some investors are building resorts and a golf course.

Son Hillock in Binh Thuy District has seen community-based tourism grow rather slowly, and the city has encouraged investment in diversifying tourism products and building resorts.

Takahashi Ayumi, JNTO’s chief representative in Viet Nam, said Japan is deeply interested in tourism activities in Can Tho since the city possesses beautiful landscapes created by rivers and orchards, something that can hardly be seen in Japan.

Admitting his organisation does not know much about Can Tho tourism, he said city authorities should provide more information so that it could disseminate it among Japanese tourist agencies.

“Last year more than 740,000 Japanese tourists visited Viet Nam. And the main destinations were Ha Noi, HCM City and Da Nang. This year we have started promoting tourism to a new destination, which is Can Tho. Hopefully, the number of Japanese tourists to Can Tho and vice versa will increase.”

Takahashi pledged to lobby the Japanese embassy for easing visa policies for Vietnamese tourists and hold more exchange events to boost tourism co-operation between the two countries.

He urged the Can Tho authorities to start more air services from the delta to major Japanese cities to facilitate travel. 

Trung Son hydropower plant begins production     

Toshiba Corporation announced that all the hydropower turbines and generators of units 1 to 4 at the Trung Son Hydro Power Station, manufactured by Toshiba Hydro Power (Hangzhou) Company Ltd, have started commercial operation.

The 260MW plant was financed by the World Bank through its first ever loan to Việt Nam, and combines drought and flood control with electricity supply.

Takao Konishi, vice president of the thermal & hydro power systems & services division at Toshiba Corporation's Energy Systems & Solutions Company said: “Toshiba has over 120 years’ experience in delivering high-quality hydropower systems for projects around the world. We are also very pleased to support Viet Nam in meeting its fast rising energy demand, and will continue to provide support as the Vietnamese economy continues to grow.”

In Viet Nam, hydropower accounts for half the total installed capacity of 34GW.

The Government is responding to growing demand with an expansion plan that will raise capacity to 75GW in 2020 and 146.8GW by 2030.

Seminar mulls ways to develop HCMC firms     

Improving the investment and business environment and administrative reforms are among the measures needed to facilitate the development of businesses in HCM City, a seminar heard on Wednesday.

Tran Thi Binh Minh, deputy director of the city Department of Planning and Investment, said as of May 25 the city had 309,138 businesses, 89.25 per cent of them very small, 4.3 per cent small, 5 per cent medium-sized and 1.37 per cent large.

In response to the Government’s target of having one million businesses in the country by 2020, city authorities last year issued resolution 3907/QD-UBND to help expand the number in the city to 500,000, many of them large, she said.

The city has drafted specific measures to create favourable conditions for businesses, including simplifying administrative procedures, setting up hotlines to receive feedback from companies and help them resolve their difficulties in a timely manner and developing programmes to provide information about support policies, she said.

The city has also issued decisions to promote start-ups, especially by youths and students, and help household businesses develop into companies, she said.

Nguyen Dinh Tue, director of the Centre for Supporting Small and Medium sized Enterprises, said while administrative procedures have been streamlined somewhat, they are still slow and do not meet businesses’ expectations.

He called for continued reform and changing the approach towards it, otherwise “it will be hard to change the situation,” he said.

Businesses face difficulties, including the need to obtain a slew of sub-licences, inspections by multiple agencies, and problems related to funding, land, human resources, demand, and others, he said.

The number of businesses not functioning is very large at around 41 per cent, he said.

The city needs to hold discussions with businesses to resolve their difficulties, he said.

To encourage household businesses to become companies, the city needs to offer free support with incorporation and other procedures, he said.

Several delegates said new businesses should be offered legal, accounting and tax consultancy at subsidised rates.

District leaders said relevant agencies should have clear instructions on helping household businesses expand into companies.

Nguyen Van Dung, head of the city People Council’s economic and budget board, said comprehensive measures are needed from the Government and local agencies to create a level playing field for businesses.

Besides, businesses themselves need to be more active in grasping opportunities and capitalising on their resources and the Government’s support policies to develop, he said.

Many delegates said it is also necessary to focus on quality rather than solely on quantity.

They also called for building strong national trademarks to enhance competitiveness in the regional and global markets.

Thua Thien-Hue targets 5,500 hectares of large-scale fields

The central province of Thua Thien-Hue plans to zone off an additional 5,500 hectares of large-scale fields to meet the target of cultivating 51,000-52,000 hectares of rice per year by 2020.

Large-scale field is a centralised production model bringing together farmers, businesses, scientists and State agencies to facilitate the application of technology in cultivation, thus improving the value of agricultural products and farmers’ income.

The province is currently home to over 1,430 hectares of large-scale fields, increasing economic efficiency from 15 to 20 percent.

Close connections between local farmers and businesses have brought remarkable achievements to the model. Farmers gathered to create huge volume of farm produce while businesses are responsible for providing seedlings at stable prices and providing the farmers with cultivation techniques to ensure the output and quality.

Under the large-scale field model, local authorities and residents join hands to build irrigational systems and promote mechanisation in agricultural production. Advanced technologies have been comprehensively applied, from cleaning up the fields before rice sowing, fertilising and preventing diseases to harvesting.

According to Director of the provincial Department of Agriculture and Rural Development Ho Sy Nguyen, the quality and quantity of farm produce are decisive factors for the success of large-scale field model.

In the coming time, all localities need to zone off suitable areas for large-scale fields, renovate production methods based on linkages among farmers, businesses and scientists as well as ensure stable consumption markets for farmers.

Binh Dinh fishermen in bumper catch

A fishing boat has caught more than 1.1 tonnes of tuna off Quy Nhon city in the central province of Binh Dinh.

The off-season catch was sold for 110,000 VND (4.84 USD) per kilogramme.

Tran Quang Bao, captain of the boat, said tuna prices had increased by around 12,000 VND (53 cents) per kilogramme since last month.

"The price is quite high and so fishing boats and their crews have high incomes. We are quickly stocking up on food and water to return to the sea."

According to the provincial Department of Agriculture and Rural Development, so far this year the fishermen have caught 8,511 tonnes of tuna, up 18.6 percent compared to the same period last year.

On average, a boat earns 70-80 million VND (3,077-3,517 USD) per trip.

Nguyen Viet Nghia, deputy director of the Institute for Seafood Research, said 485,600-502,900 tonnes of tuna are caught off central provinces every year.

The boats are mainly from Phu Yen, Khanh Hoa and Binh Dinh, and their catches comprise yellow fin tuna, big eye tuna and skipjack tuna, he said.

Binh Dinh was the first province to use new technologies and skills to supply fish to Japan, especially tuna.

By 2014 the province’s fishermen had modern equipment and technologies worth 1 million USD to catch, preserve and transport tuna.

In September that year the first tuna was exported to Japan and sold at three times the price the fish fetches in the Vietnamese market.

The province has around 3,200 fishing boats.

US company hosts workshop to increase Vietnamese SMEs leadership

The US company Procter & Gamble hosted a workshop in Hanoi on September 6 to improve leadership of small- and medium-sized enterprises (SMEs) in Vietnam.

The event took place ahead of the 24th APEC Small and Medium Enterprises Ministerial Meeting (SMEMM) and related meetings, which are scheduled to take place in Ho Chi Minh City from September 10-15. 

P&G affirmed its long-term commitment in Vietnam through a partnership with the Ministry of Planning and Investment to help Vietnamese firms improve competitiveness and innovation.

Deputy director of the ministry’s Enterprise Development Agency Nguyen Hoa Cuong said one of the top priorities of the Vietnamese Government from now to 2020 is developing SMEs as the engine of economic growth.

Improving the capability of Vietnamese enterprises will bolster Vietnam’s integration and connectivity with other APEC economies, he said.

“Vietnam is one of P&G’s important markets”, Vice President and General Manager at P&G Asia-Pacific Omar Channawi said.

He went on to say that “We are proud to continue our unwavering commitment to support and grow with local enterprises in a sustainable way”.

“Vietnam is among the first nations in Asia where P&G introduces both P&G SME Leadership College and Signal Accelerator,” he added.

He hoped that these programmes will help Vietnamese SMEs increase their competitiveness, innovation and management capabilities, as well as grasp business opportunities.

Vietnam spends over US$1bn importing veg in Jan-Aug 2017

While Vietnam sells its green produce around the world, the Southeast Asian country has also spent huge amounts of state money importing vegetables.

In the Jan-Aug period of this year, Vietnam imported more than US$1 billion worth of fruits and vegetables, a massive 94% increase on a year earlier, according to the agriculture ministry.

The eight-month import figures on vegetables were worth US$190 million, up 35% from the same period last year, while fruit imports more than doubled to top US$800 million, the ministry elaborated.

In August alone, the country spent nearly US$170 million on imported green produce.

Vietnam imports the most produce from Thailand, with the neighboring country’s produce accounting for nearly 62% of imports in the first eight months of 2017. China ranks second, making up 16% of Vietnam’s green import value.

The country’s fruit and vegetable imports from Thailand rose by 3.2 times from last year, while increases from the Indian and New Zealand markets were 2.2 times and 50%, according to the ministry.

It posted US$20.45 billion in export revenue from agro-forestry and aquatic products in the Jan-Jul period this year.

As of mid-July, Vietnam shipped more than US$1.8 billion worth of fruit and vegetable to other markets.

Agricultural sector likely to achieve growth target this year

Deputy Minister of Agriculture and Rural Development Ha Cong Tuan told a ministry meeting in Hanoi on September 6 that the sector could achieve this year’s 3.5 percent growth target, set the Prime Minister. 

The PM set agro-forestry-fisheries exports hitting 33 billion USD and 31 percent of communes meeting new rural development criteria. 

In the first eight months this year, agro-forestry-fisheries exports rose 13.5 percent year-on-year to 23.7 billion USD, 5.1 billion USD of which was from the shipment of aquatic products, up 18.1 percent annually. Total aquatic exports this year are estimated to hit 8 billion USD, a billion USD more than 2016. 

Nguyen Duy Vinh, deputy head of the ministry’s Planning Department, said the sector has focused on restructuring and choosing key products at national, regional and provincial levels while expanding export markets, popularising Vietnamese farm produce and improving food hygiene and safety. 

According to the Cultivation Department, rice production nationwide is likely to increase by 250,000 – 300,000 tonnes annually to 44.1 million tonnes this year. 

Tuan said the values of animal breeding, fisheries and forestry are expected to expand by 3 percent, 5 percent and 6.6 percent, respectively. 

On new rural development, up to 2,813 communes met 19 criteria as of the late August, or 31.5 percent, surpassing the target. Meanwhile, 34 districts were recognised as new-style rural areas. Between now and the year’s end, four districts will achieve the status.

Russia’s auto maker plans to build assembly plant in Vietnam

Russian automobile company Sollers plans to set up an assembly plant in Vietnam in 2018, the company’s General Director Vadym Shvetsov said on the sidelines of the third Eastern Economic Forum in Vladivostok, Russia on September 6 .

The company is negotiating terms with Vietnamese partners, including technical issues, industrial assembly facility, he said, adding that Vietnam also has conditions for setting up the facility.

In July, Sollers first announced the plans to create a joint assembly plant in Vietnam with initial capacity of 1,000 cars per year, according to Shvetsov.

Sollers has worked with world leading automobile makers such as Ford, SsangYong and Mazda. 

Russian President Vladimir Putin announced the Russian – Vietnamese investment fund will invest 500 million USD in non-oil and gas projects in late June.

Vietnam gears up for fourth industrial revolution

Overcoming the challenges of the fourth industrial revolution and making best use of the opportunities it will bring was discussed at the seventh Vietnam ICT Summit 2017, which concluded in Hanoi on September 6. 

Truong Gia Binh, Chairman of the Vietnam Software and IT Services Association, said Vietnam should take drastic actions to engage in the fourth industrial revolution.

Specifically, in information-technology, the country needs to create an environment that encourages innovation, and an open legal system facilitating new-style production and business models, he said. 

The first job is to roll out a national strategy on digital transformation to plan digital socio-economic development, contributing to industrialisation, modernisation and economic reform, Binh noted. 

He stressed that breakthroughs should be made on the basis of digital transformation in all sectors at all levels. 

Experts at the summit called for efforts from the entire political system, social organisations, businesses, universities, research institutes, scientists and society to enhance capacity to access the fourth industrial revolution. 

The connectivity between State agencies, enterprises, universities and research institutes plays the core role in the work, they said. 

They also pointed out the need for Vietnam to prioritise sectors that have potential in digital economic development, first of all the digital technological industry, smart agriculture and tourism. 

At the same time, the Government and agencies relating to IT and communications should remove all barriers and build an ecosystem to promote innovation, start-ups and develop the private economic sector, making them drivers of the digital economy, they said. 

Other tasks include developing high-quality human resources and a standardised and open data base to create a foundation for the development of digital technology, they added.

Vietnam’s trade ministry asks gov't to pay more for wind power

Vietnam’s Ministry of Industry and Trade has asked the government to raise the buying price for wind power in an effort to help investors cover high input costs.

The ministry suggested that the price should be lifted to 8.7 cents per kilowatt-hour (kWh) for wind energy projects on land and 9.95 cents per kWh for offshore plants.

Since 2011, the buying price for wind energy has stood at 7.8 cents for all land-based projects in Vietnam, with 6.8 cents paid by State-run power monopoly Vietnam Electricity (EVN), and the rest coming from the country's Environment Protection Fund.

For the country's only offshore plant in the southern province of Bac Lieu, the current price is 9.8 cents per kWh.

The trade ministry has calculated that this price adjustment would raise EVN's production costs just slightly by VND0.08 per kWh this year and VND0.23 per kWh in 2019 (VND1= 0.004 cents).

With the current buying price at 7.8 cents per kWh, most wind power projects are experiencing difficulties, the ministry said.

Meanwhile, the buying price for wind power is 20 cents in Thailand, 29 cents in the Philippines and 30 cents in Japan.

Tran Vinh Thong, an official from Thuan Binh Wind Power Joint Stock Company that operates the Phu Lac wind power plant, said the first phase of the project had cost VND1.1 trillion, while the plant makes just VND100 billion in revenue each year.

Given interest payments at VND70-80 billion per year, Thuan Binh has just 20-30 billion to cover production costs and makes a small profit from running the project in the south-central province of Binh Thuan.

“The biggest problem about investing in wind farms is the low buying prices and the time it takes to recover the investment,” Thong said.

At the current rate, it will take the company 14 years to recoup its investment, while the life span of a wind farm is only 20 years, he added.

The total wind power capacity in Vietnam is predicted to reach 206MW this year, 456MW next year and 800MW in 2020.

The southern provinces of Ben Tre, Bac Lieu, Tra Vinh and Soc Trang have been eyed as potential destinations for the development of offshore wind farms.

Vietnam is trying to generate enough energy to sustain the country's growth and to connect the millions of people who still do not have access power, while gradually shifting towards clean and low-carbon energy.

Last year, the government revised down its output target for coal-fired power plants to 53.2% of the country's total power generation by 2030 from the 56.4% previously projected.

Vietnam is aiming to produce 10.7 percent of its total electricity through renewable energy by 2030, mainly through solar and wind energy, up from 6 percent as previously planned.

Nguyen Anh Tuan, a senior energy official at the industry and trade ministry, told VnExpress in June that the government had raised the buying price for solar power from 7.8 cents to 9.35 cents per kWh, offered investors tax incentives and cut land use fees.

He said investors in wind power projects will likely have the same incentives in the near future.