US imposes zero dumping tax on Vietnamese tra fish

All 18 Vietnamese exporting tra fish fillets to the US have been exempted from anti-dumping taxes.    

Among the businesses, Vinh Hoan Group has also been enjoying a zero tax rate in the US market for four consecutive years.

The decision was announced by the US Department of Commerce (DoC) following its eighth preliminary results of administrative review (POR8) for anti-dumping duties on tra fish fillets imported from Vietnam from August 1, 2010 to July 31, 2011.

Truong Dinh Hoe, Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that according to the US regulations, any business which is offered a zero tax rate for three consecutive years can be exempted from anti-dumping duties indefinitely.

The DoC plans to release its final decision on anti-dumping duties for Vietnamese tra fish by early next year.

Penetrating African, Middle East markets

More than 200 businesses from Vietnam, Africa and the Middle East discussed opportunities for cooperation at a workshop in Hanoi on September 7.   

Vietnam has developed diplomatic ties with almost all African and Middle East countries, paving the way for stronger trade, economic and investment ties between the parties concerned.  

Africa and the Middle East can meet Vietnam’s demands for fuel and material supplies, market expansion, and investment, services and human resource development, said Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI).  

Middle East countries are expanding cooperation with Vietnam and receiving an increasing number of Vietnamese guest workers, Loc told the workshop.

According to the VCCI president, trade and investment ties between Vietnam, Africa and the Middle East have grown and flourished over the years.

Bilateral trade between Vietnam and Africa rose from US$2.07 billion in 2009 to US$4.77 billion in 2011 and US$1.81 billion in the first eight months of 2012.

Major exports are rice, garments, footwear, electrical and electronic appliances, mechanical staples, plastics, and chemicals. Vietnam’s key goods consumers include South Africa, Egypt, Algeria, Mozambique and Morocco.

So far this year Vietnamese businesses have invested in 17 projects in Africa with a total registered capitalisation of nearly US$1.2 billion.

Two-way trade between Vietnam and the Middle East has also increased sharply in recent times, reaching US$3.31 billion in 2010, US$5.17 billion in 2011 and US$3.95 billion in the first eight months of 2012.

Turkey, Arab Saudi, Iraq and Israel are Vietnam’s major trading partners that mostly consume mobile phones and accessories, computers, fibres, seafood, rubber, tea, milk, and pepper.

Meanwhile, Vietnam imports plastic materials, liquefied gas, metals, and precious gemstones from this lucrative market of 260 million people.

In the past eight months, Vietnamese businesses poured more than US$84 million into four projects in the Middle East.

Representatives of participating businesses pointed to difficulties they are facing in undertaking their strategies in each other’s markets.

They said they lack information about each other’s markets, and they do not feel confident in the success of their business strategies.

In addition, they said, their governments have all encouraged economic cooperation, but not introduced specific support policies and favourable administrative procedures, thus reducing the efficiency of cooperation.

Le Dang Dung, Deputy General Director of the military-run telecom group Viettel, proposed that the governments of concerned countries support their businesses by specifying policies and especially streamlining administrative procedures.

He also proposed that the ambassadors of African and Middle East countries help ease difficulties for businesses and make recommendations to their governments to support Vietnamese businesses in getting more involved in economic cooperation.

At the workshop, the Vietnam-Africa-Middle East business forum made its debut, aiming to promote trade and economic cooperation between their business communities.

Vietnam, France increase communication cooperation

Vietnam and France will work closely together to strengthen cooperation on communication in 2013-14 to mark 40 years of their diplomatic ties and prepare to raise their bilateral relationship to the status of strategic partnership.

The agreement was reached during talks in Paris between Fleur Pellerin, French Minister for Small Business, Innovation and Digital Economy, and Nguyen Bac Son, Vietnamese Minister of Information and Communication, who visited France from September 3-7.

Both sides exchanged measures to boost cooperation in the communication and publishing industries to improve staff’s skills in the field.

Son also held a working session with Aurelie Filippeti, Minister of Culture and Communication, to promote the images of Vietnam and France to international friends.

The two ministers shared experience in managing telecommunications, restructuring telecom businesses, and developing media networks for telecom, radio & TV broadcasting, printed and online genres.

At another working session, Son exchanged views on information dissemination and staff training with the management of Channel 24. They all agreed to send their reporters to each other to share experience in the field.     

During his stay, Son visited a number of information and communication agencies in Paris.

Vietnam boosts agricultural development cooperation

Vietnam is ready to share experience and boost cooperation with other countries in the field of agriculture and rural development, said Prime Minister Nguyen Tan Dung.    

He made the statement while attending the second Conference on Agriculture, Food Security and Climate Change in Hanoi on September 6.

He praised the conference’s theme, ‘Hunger for Action’, with its focus on discussing practical issues and defining suitable and effective strategies to develop eco-friendly agriculture as well as promoting sustainable development and green growth.

PM Dung emphasized the important role of agriculture in Vietnam’s 2011-2020 socio-economic development strategy.

Over the past years, he said, Vietnam’s agricultural sector has recorded many considerable achievements, especially in food and seafood production and industrial crop cultivation, he said, adding that the country has now become the world’s second largest rice exporter.

In the coming years, Vietnam will develop agriculture in a comprehensive, modern and sustainable manner, with high productivity, quality, efficiency and competitiveness to ensure national food security and meet domestic consumption and export demands, Mr Dung said.

Vietnam is forecast to be one of the countries to be hardest hit by climate change, especially rising sea levels, which pose a big threat to agricultural production. Therefore, to realise the above-mentioned target, Vietnam is actively restructuring its agricultural sector, focusing on well exploiting potential areas, speeding up scientific and technological research and application in production, processing and supplying chains, as well as strengthening environmental protection, he said.

“We are ready to cooperate with other countries and relevant international organisations in developing pilot models on green agriculture in Vietnam,” Dung stated.

Together with the mobilisation and effective use of domestic resources, Vietnam plans to step up international integration and cooperation in order to create a favourable environment for attracting overseas resources for development, he said.

The PM called for further assistance and closer cooperation from other countries and international organisations in the cause of national construction and development.

The conference was jointly organised by the Vietnamese Ministry of Agriculture and Rural Development, the Dutch Government, the World Bank and the UN Food and Agriculture Organisation (FAO). It has drawn the participation of over 500 delegates from 150 countries and more than 20 international organisations.

Japanese investors keen on Vietnamese market

Representatives of businesses from Aichi Prefecture, Japan, gathered for a meeting in Hanoi on September 6 to review their operations in Vietnam over recent years.
   
The event, held by the Ministry of Planning and Investment (MPI), aims to attract more foreign investment and help Japanese investors remove obstacles to their operations in the country.

Head of the MPI’s Foreign Investment Agency Do Nhat Hoang said that Japan is currently Vietnam’s largest foreign investor, with 1,729 projects capitalised at more than US$28 billion. Businesses from Aichi Prefecture are committed to a further 96 new projects, mostly in support industries.

Hoang said that his ministry is focusing on infrastructure upgrades, administrative reform and human resource development to lure more foreign investors, including those from Japan.

Businesses attend China trade fair

A number of Vietnamese businesses producing farm and handicraft products are taking part in the third Linyi International Trade Fair, which opened in Shandong province, China, on September 6.

Hoang Thi My Huyen, President of Son Luyen Tourism and Import-Export Joint Stock Company, said that the fair offered Vietnamese businesses an opportunity to introduce their brands to foreign customers and traders, seek new partners and enhance trade promotion.

The fair, one of the largest commercial activities in the Eastern region of China, has attracted more than 100,000 visitors and entrepreneurs from nearly 50 countries in the region and throughout the world.

Shrimp exports to Taiwan pick up

Vietnam earned around US$42 million from its shrimp exports to Taiwan in the first seven months of this year, up 16 percent compared to last year’s figure.

Since 2007 Vietnam has become a leading shrimp exporter to Taiwan, and in 2011 alone, it accounted for 24.5 percent of Taiwan’s total shrimp imports, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

However, Vietnam is vying for a larger market share in Taiwan as its shrimp prices are still higher than those imported from India and Indonesia.

Businesses face data loss

Nearly 94 percent of enterprises in Vietnam suffered data loss in 2011, according to a recent report by leading antivirus software manufacturer, Symantec.    

The information was released at a press conference in Hanoi on September 5.

Raymond Gohn, Senior Regional Director for Systems Engineering and Alliances in Asia South Region of Symantec, attributed data loss to human error, software and hardware faults, and viruses.

It is estimated that 37 percent of data was archived inside fire walls, while 27 percent was left unprotected.

Symantec’s report revealed that data loss harms the economy  and can threaten business prestige. It noted that global enterprises spent around US$1,100 billion each year on digital information security.

In Vietnam, digital information security accounts for 45 percent of an organisation’s total IT expenditure.

Symantec suggested enterprises apply cloud computing solution that provides automatic backup and easier access to data.

HSBC optimistic about Vietnam’s economy

The Hong Kong and Shanghai Banking Corporation (HSBC) has expressed its optimism about the country’s economic prospects.   

“With patience and strong reform momentum, when the dust settles, Vietnam should find itself in a trimmer shape and more ready compete when the global economy recovers,” it said in a report on September 5.

According to the report, even with higher domestic oil prices, inflation dropped to 5 percent year on year in August from 5.5 percent in July.

Exports, though lower than in previous years, have remained resilient in double digits. Foreign reserves have increased and the Vietnamese dong has stabilised, strengthening the State Bank of Vietnam’s credibility.

These positive developments could not have happened without the political will to control the overheated economic growth, the report emphasised.

Business conditions are still weak but not free-falling, it commented, adding that demand for Vietnamese goods is rising despite the impact of the global crisis.

HSBC Vietnam economists said they expect domestic consumption to recover slightly towards year-end, especially with credit arrangements expanding.

On a year on year basis, export growth in August climbed to 13 percent from 1.6 percent in July.

While domestic demand remains weak, external demand for Vietnamese goods seems to be picking up.

The report also noted that Vietnam continues to attract tourists, boosting sales in the service and tourism sector.

Policy makers have proven in the years that they are able to address challenges as a patient approach to reform, will solve bad debts and create a healthy economic system, the report concluded.

Banks turn away from speculators with new mortgage offers
 
Many commercial banks have raced to launch preferential mortgages for people seeking homes rather than providing loans for property speculators.

Banks were previously keen to offer loans to property investors, but have now turned to customers who have a real need to buy homes. Offering mortgages will help potential home owners afford real estate and provide the project developers with much needed financial capacity to maintain their business activities.

Statistics revealed that around seven million low to medium income earners in urban areas need accommodation. Banks have become increasingly aware that a majority of the population aged between 16-50 accounts for more than 50% of the demand for housing.

VietinBank has co-operated with real estate investors to provide a VND5 trillion (USD238 million) mortgage package that will be rolled out to potential home buyers. Customers who buy apartments at Vingroup projects like Times City, Vincom Village and Royal Village will benefit an annual interest rate of 10% per year with a maxim term of 20 years.

VietinBank said it will only apply the preferential mortgages to people who have real demand for housing, not property speculators. Selected projects must be appraised for quality, efficiency and investor capacity.

VIB offers a VND1 trillion (USD47.6 million) mortgage for customers who want to buy, build or repair their houses at an annual rate of 9.9% for the first three months. From the 4th month, the interest rate will be adjusted based on the market changes.

Earlier, BIDV launched a VND4-trillion (USD190.4 million) mortgage with an interest rate of 16% per annum. The mortgage has a 15 year span and the loan can account for 85% of the house value.

Meanwhile, people who buy houses from projects funded by Vietcombank will be able to receive an annual interest rate of 0% for the first year from the bank.

Many others such as Eximbank, SeABank and ACB have also offered preferential mortgages for customers with real demand for accommodation.

Tuna fisheries to get more modern technology

The Ministry of Agriculture and Rural Development has ordered the Directorate of Fisheries to work with three central provinces to speed up its programme to modernise their tuna fishing boat fleets and re-organise fishing to improve the value chain.

The Directorate is working on a project to build 30 modern boats for tuna fishermen in Binh Dinh, Phu Yen and Khanh Hoa, the country's main tuna fishing provinces.

The boats, to cost a total of VND280 billion (US$13.33 million), will be built by 2015.

The beneficiaries can choose to get a 16-20 per cent subsidy for the boat and equipment or an interest-free loan worth 70-80 per cent of the boat's cost.

The boats will be made of steel or composite materials and be equipped with modern paraphernalia, including high-power engines, high-quality refrigeration systems and modern communication equipment.

The directorate wants tuna fishing boats to work together, be equipped with communications facilities, and be fully apprised about fishing grounds by 2020.

Also by that time, it hopes 80 per cent of all new tuna boats will be built in metal or new materials, and post-catch losses will be less than 10 per cent.

Binh Dinh, Phu Yen and Khanh Hoa have a total of 2,426 tuna fishing boats, according to the directorate, with Binh Dinh having 1,556 of them.

Mostly with wooden hulls, they have communications equipment but lack good refrigeration systems, which means the quality of the fish deteriorates by the time they reach shore.

To meet export quality, the fish must be preserved at minus 60 degrees Celsius, but most boats can only manage a maximum of minus 45 degrees, according to tuna exporters.

The tuna fishing season lasts from November to September.

Binh Dinh became the country's leading province, with its fishermen catching 6,958 tonnes of tuna by August-end, two times the catch in the same period last year, according to its Department of Agriculture and Rural Development.

Most of the boats can bring back up to three tonnes per trip, earning a profit of more than VND100 million ($4,700).

The quantity of tuna caught off Binh Dinh has increased significantly this year because the fishermen have started to use a new method of fishing – they turn on very bright lamps to attract the tuna and then use fishing hooks or nets to catch them.

Vietnamese fishing grounds yield more than 1.1 million tonnes a year, according to the ministry. The skipjack tuna accounts for more than 600,000 tonnes of this though Vietnamese fishermen mostly catch the yellowfin and bigeye tuna.

In the first half of the year, they had already caught 11,703 tonnes of tuna, or nearly equal to last year's total catch.

By July-end, tuna exports had been worth nearly $312 million, up 42.3 per cent year-on-year, the Viet Nam Association of Seafood Exporters and Producers said.

The country's tuna is shipped to 77 countries and territories, with the US, Japan and the EU being the biggest buyers.

MoIT proposes raising price of coal sold to power plants
 
The Ministry of Industry and Trade has asked the Government to increase the price of coal sold to power producers from the fourth quarter this year to reduce losses for coal producers.

Under the proposal, coal prices sold to power producers will be made equal to 2011 market prices from the fourth quarter this year and then will fully follow the market price from next year.

Deputy general director of the Viet Nam Coal and Mineral Industries Group (Vinacomin) Bui Van Khich said that the Government had so far still required Vinacomin to sell its product to power producers at below market price to stabilise the economy. The price was equal to only roughly 65 per cent of the coal production price.

Vinacomin currently supplies roughly 60 per cent of its total output to Electricity of Viet Nam (EVN).

Khich said that even though higher prices for coal paid by EVN in the wake of a coal price hike in July could add VND300 billion (US$14.28 million) to its earnings this year, his group still made an estimated loss of roughly VND8.5 trillion ($404.76 million) this year because the price of coal sold to power producers was still much lower than market price.

Under the proposal, the ministry also suggested the Government reduce the export tax on coal from 20 per cent to 10 per cent to ensure Vinacomin has a sufficient profit margin for necessary investments and expansion of coal mines.

Vinacomin said that the mining industry faced difficulties due to steep decreases in both domestic demand and exports, which caused coal producers to have nearly 10 million tonnes of coal in inventory.

Meanwhile, Vinacomin said coal exports have also faced fierce competition from other countries as demand has slowed, resulting in sharp price declines.

MB Capital files to become first open-end bond fund

Fund manager MB Capital, a subsidiary of Military Bank, has become the first fund in Viet Nam to apply to the State Securities Commission for a licence to establish an open-end bond fund.

The application was submitted on August 30 and, if approved, would make the Military Bank Bond Fund (MBBF) the first of its kind in Viet Nam.

The MBBF would focus on Government bonds, secured corporate bonds and term deposits, with Japanese investors expected to contribute 30-40 per cent of the fund's initial capital.

The fund's goals would be to achieve higher earnings than interest paid on bank deposits, with low risk to investor capital. MB Capital planned to conduct roadshows and offer fund certificates to the public after receiving approval from the State Securities Commission.

The fund was also expected to help local investors gain improved access to the domestic bond market in a professional manner, said MB Capital general director Phan Anh.

The legal framework for open-end funds, issued in late 2011 by the Ministry of Finance, was expected to boost market liquidity and the number of institutional investors. However, market insiders have urged regulators to further address the issues of tax rules, foreign ownership limits in open-end funds, and the accounting regime for these types of funds.

High tax rates on fund income, currently 25 per cent, were a big concern for investment funds, Anh said, urging regulators to issue tax incentives to encourage investors and promote this form of investment channel on a wider scale.

Ministry scraps export tax on coconuts

The Ministry of Finance (MoF) has decided to remove export tax on coconut starting this month.

MoF made this decision after receiving a petition from the People's Committee of southern Ben Tre Province, known as the country's "kingdom of coconut", to stop imposing a 3-per-cent export tax on coconut because of slumping prices.

Currently, each coconut is sold at VND2,000 (US$0.09), a price five times lower than that of previous years.-

Ha Noi prepares for Viet Nam Motor Show

The Viet Nam Motor Show 2012 will be held here by the end of this month with the participation of seven local car manufacturers and six imported brands, organisers said.

The annual show, themed "Towards end-users," will also include dozens of foreign and domestic automotive parts suppliers showcasing their wares in a 12,000sq.m. room.

The five-day event, which starts September 26 in Ha Noi's Giang Vo Exhibition Centre, is expected to attract 120,000 visitors.

It is being organised by the Viet Nam Automobile Manufacturers Association (VAMA), the Viet Nam Advertising&Exhibition Fair JSC (CIS) and the Le&Brothers PR&Event Management Company (Le Bros).-

Big C aims to boost sales with promotions

French-owned Big C supermarket has launched several promotion programmes with discounts of up to 50 per cent on more than 2,000 products until September 23 in response to HCM City's annual promotion month in September.

Another programme offers discounts on 300 essential items until November 1 as a measure to help ease consumers' difficulties caused by higher petrol and other prices.

Shrimp exporters top Taiwan market
 
Viet Nam has been the largest exporter of shrimp to Taiwan for the last five years and Vietnamese shrimp exports remained high this year, according to the Viet Nam Association of Seafood Exporters and Producers (Vasep).

The association said that according to the International Trade Centre (ITC)'s statistics on raw shrimp imports into Taiwan, Viet Nam took first place in the list of shrimp suppliers for the market during the 2007-11 period.

Vietnamese shrimp exported to Taiwan represented 24.5 per cent of total shrimp imported by that market in 2011. China followed with 17.5 per cent and Thailand with 16.8 per cent.

Meanwhile, the association's statistics reported that Taiwan was the seventh largest importer of Viet Nam's shrimp after Japan, the US, mainland China, South Korea, Australia and Germany. Shrimp shipments to the market continued to see stable growth during the first seven months of 2012.

As of July 2012, shrimp exports to Taiwan amounted to nearly US$42 million, up 16.2 per cent compared to the same period in 2011. In July 2012, shrimp delivery to the market increased by 23.5 per cent to over $8.2 million while shrimp exports to other markets such as Japan, the US, EU or South Korea sank.

Most of these exported crustaceans are raw black tiger shrimp. In 2011, raw black tiger shrimp made up 87 per cent of all the shrimp exported to Taiwan. As of July, this year's raw black tiger shrimp exports to Taiwan reached $35 million, accounting for 83 per cent of all shrimp exported there.

"Taiwan is considered a promising destination for Viet Nam's black tiger shrimp. In contrast, many major shrimp-consuming markets in the world are in favour of white-leg shrimp," said Nguyen Minh Tam, the association representative.

By mid-August, Vietnamese shrimp exports to Taiwan had seen a year-on-year increase of 17 per cent to $45 million, she said.

However, Viet Nam's black tiger shrimp products faced fierce competitiveness in price with other suppliers due to recent increases in production costs.

Since early this year, Taiwan's economy was hit heavily by the European economic crisis and resulting downturn in the economy of mainland China, the key trade partner of Taiwan.

However, the Taiwanese economy was expected to recover in the last two quarters of the year. Thus, the growth in Viet Nam shrimp exports to that market could continue until the end of this year, she said.

The association also said the national shrimp export value might not reach the targeted export value of $2.5 billion for this year after reductions in turnovers for June and July due to increases in cost and competitiveness on the world market.

The total export value of shrimp fell by 4 per cent in June and 6.8 per cent to $200 million in July against the same months of last year.

The reductions were caused by pressure in competition with foreign rivals such as Thailand, Indonesia, Ecuador and China, high input costs and low demand in major export markets including the US, the EU and Japan, the association said.

The association expected that by the end of the year, local shrimp exporters could overcome their current difficulties due to state policies on credit that would allow them to take out more loans to promote production and export.

The total shrimp export value was estimated to reach $1.7 billion for the first three quarters of this year, including $690 million for the third quarter, it said.

Ministry sets new regulations on plant protection

People must now have certification to use certain plant protection substances.

This is one of the new regulations in the draft law on plant protection and quarantine.

Experts from the Ministry of Agriculture and Rural Development said that this was the first time people using limited-use plant protection substances were required to have documentation.

Plant protection substances can sometimes be necessary for agricultural production. If the substances are used properly in a limited time period, they do not have a significant effect on the environment.

To limit the abuse of these substances, which pollutes the environment and affects people's health, farmers should be trained to use them properly and issued certificates when they demonstrate they are able to do so.

 State Bank struggles to stabilize bullion market

Although Saigon Jewelry Company (SJC) officially handed over exclusive rights to manage brand-name and production quota of SJC gold to the State Bank of Vietnam (SBV), it seems this is not enough to stabilize the domestic gold market as the gap between domestic and global gold price is widening from VND2.4 million in late August to the current level of VND3 million per tael.

Nguyen Hoang Minh, deputy director of the State Bank of Vietnam-Ho Chi Minh City Branch, said that SJC handed over its gold moulds to SBV-Ho Chi Minh City Branch on August 25. Accordingly, the branch formed two groups, of which one is in charge of sealing and keeping gold moulds.

When the Central Bank gives permission to produce gold bars, the SBV-Ho Chi Minh City Branch will hand the moulds back to SJC. The second group will be responsible for supervising gold processing at SJC. After SJC completes the Central Bank’s order, the SBV-Ho Chi Minh City Branch will put gold moulds into the safe and seal them. In case of production carrying on for several days, supervisors will seal the moulds during their shift breaks and at the end of the day.

Gold production under supervision of the Central Bank is expected to stop illegal gold production. However, the monopoly of SBV in gold production has a great effect on SJC business activities.

Le Hung Dung, chairman of SJC, said that profits gained from producing gold bars at VND50,000 per tael and trading gold, accounting for 80 percent of the company’s profits, will be significantly reduced. The company will have to restructure its development strategy, promoting production and trade of jewelry instead of mainly focusing on trading gold bars. SJC has been strongly investing in jewelry which is expected to grow effectively in the next 3-5 years.

It takes more effort to make jewelry, but jewelry produces higher added value than gold bars, he said.

SBV aims to stabilize the gold market in the shortest time after taking monopoly control of production of gold bars. In particular, it gave SJC the green light to convert gold of other brand-names, and damaged gold into standardized SJC bullion.

According to Nguyen Hoang Minh, SJC converted around 1.8 tons of damaged gold into 48,000 taels of standardized SJC bullion to stabilize gold prices in Vietnam. However, the gap between domestic and global gold prices was still high.

Senior officials at a commercial bank said that supply of 48,000 additional taels of gold was not enough to meet the current demand as not only have people increased buying gold because of negative news on monetary market but commercial banks have also bought gold to pay clients who deposited gold at their banks.

Wide gap between domestic and global gold prices is likely to lure speculators to smuggle gold to produce jewelry, as the Central Bank has closely controlled gold moulds. SJC as a sole national gold brand is not enough to stabilize the bullion market.

One expert said that the Central Bank should increase gold reserves among foreign currency reserves to be always ready when markets need to be stabilized and keep domestic gold prices at the same level as global prices.

Ministry earmarks $1.7m for trade promotion

The Minister of Industry and Trade, Vu Huy Hoang, has approved 44 projects in the second phase of the National Trade Promotion Programme that will run until the end of this year.

The programme, which aims to step up export and domestic trade promotion activities, especially in rural, mountainous, border and island areas, is estimated to cost VND35.456 billion (US$1.7 million).

With the second phase, the National Trade Promotion Programme 2012 will have a total of 90 projects costing VND79.39 billion ($3.78 million).

According to the Ministry of Industry and Trade's Viet Nam Trade Promotion Agency, the projects will cover a range of promotion activities including domestic trade exhibitions, international conferences on export commodities and capacity building for trade promotion officials.

It aims to popularise the potential and strengths of various regions and localities and promote the use of Vietnamese goods by Vietnamese people.

VALC receives second Airbus A321-200 plane

Vietnam Aircraft Leasing Company (VALC) delivered the second A321-200 aircraft to Vietnam Airlines on September 5 in Hamburg, Germany under an operating lease agreement.

The A321-200 aircraft was certified airworthy by the Civil Aviation Administration of Vietnam (CAAV) and was registered as VN-A339.

The plane is scheduled to leave Hamburg on September 6 and arrive at Noi Bai International Airport in Hanoi on September 8. It will be added to the Vietnam Airlines fleet and used on medium-length routes. Nguyen Duy Vien, VALC CEO, said the more than US$600 million investment to acquire ten A321-200 aircraft is one of the company’s major projects.

Due to the global economic recession, VALC had to arrange financing for the project with a number of international finance institutions and export credit agencies, including Euler Hermes (Germany), COFACE (France) and E.C.G.D (UK).

VALC has leased two A321-200 aircraft in the last two weeks. It received its first plane under a purchase agreement with the manufacturer, Airbus, on August 22.

Southeast Asia airport summit opens in Ho Chi Minh City

The Southeast Asia Airport Expansion Summit 2012 took place in Ho Chi Minh City on September 6.

Jointly organised by the Civil Aviation Authority of Vietnam and the Noppen Conference and Exhibition Co., Ltd (Lnoppen), the event saw the participation of 120 representatives from government offices, airports and aviation consulting firms all over the world.

At the summit, participants said the Southeast Asian region and Asia in general have huge potential. They stressed that the aviation development in Southeast Asia has led to the large-scale airport projects in the region.

The conference also focused on airport infrastructure development in Vietnam and the region.

Short circuit in electronics trade
 
The electronics and hardware industry in HCM City has significantly declined since 2010, a recent survey has found.

The survey, carried out by the HCM City Computers Association (HCA), found that in 2010, the industry had recorded a turnover of VND26 trillion (US$1.3 billion approx.), accounting for 22 per cent of the total national turnover. However, this slumped to 16 per cent last year, although the turnover increased to VND38 trillion.

The survey found that most enterprises with large turnovers were foreign companies, a few of them in HCM City.

Desktop assembling is major income earner for Vietnamese enterprises. However, low localisation ratios and large borrowings from banks meant that last year, just 20 per cent of local desktop-assembling firms made a profit.

But these enterprises will face more challenges this year as desktops are sold mostly to offices and projects that are suffering from the ongoing economic downturn. Individuals and households now prefer laptops and tablets.

The survey also found that just five FDI companies in HCM City accounted for nearly 28 per cent of the total turnover of VND23.4 trillion recorded by 103 companies in 2010. This increased to 38.5 per cent in 2011.

Nguyen Trong Duong, head of the Information and Communications Ministry's ICT department, said at a recent conference that in 2011, the national hardware industry posted a turnover of $11.3 billion, or 82 per cent of the information technology industry, but domestic enterprises had just 10 per cent.

Three important segments, telecommunication equipment, mobile phones and laptops, were all dominated by FDI enterprises.

The hardware assembling industry, set up in 1995, marked a decline with the withdrawal of Sony in 2005.

Industry insiders and experts have said local enterprises should focus on strategies to develop support industries for big FDI enterprises, promote research and development (R&D) and invest in special designs and products that meet local demands.

After establishing a strong foundation, Vietnamese enterprises can enter desktop and laptop production through joint-ventures or mergers and acquisitions (M&A), they say.

Vietnam the 9th destination for APEC investors: PwC

Vietnam ranks the ninth among investment destinations in the Asia – Pacific region targeted by companies in the next 3-5 years, according to a survey of PricewaterhouseCoopers (PwC) announced on Wednesday.

The APEC CEO Survey 2012 was carried out by PwC International Survey Unit between June and August 2012, polling 376 chief executive officers (CEOs) and industry leaders in 40 economies, including all 21 APEC economies. This is an important survey conducted annually by PwC as the Knowledge Partner of the annual APEC Summit.

Asia-Pacific CEOs said China and the United States were their dominant targets for investment over the next three to five years. Resource-rich areas such as Russia, Indonesia and Australia, and Asian services capitals like Hong Kong and Japan were also cited as top draws for investment.

Vietnam ranks the ninth among investment destinations in the region for companies headquartered in fast-growing economies that are making their largest investments in the next 3-5 years. Besides, the country is the eleventh destination for companies headquartered in mature economies that are making largest investment in the next 3-5 years.

About 40% of CEOs said potential trade agreements by both the Association of Southeast Asian Nations (ASEAN) and the Trans Pacific Partnership (TPP) could have potentially significant impact on their companies.

According to the survey, economic disruptions, including possible recession in the U.S., the Eurozone crisis and the slowing growth in China, have taken a toll on the confidence of CEOs in the Asia-Pacific region.

Just 36% of executives surveyed by PwC said they are “very confident” of business growth over the next 12 months. Longer term, however, prospects improve, with more than half (54%) expressing a high level of confidence for the next three to five years.

In addition, according to the survey, CEOs said the top priorities of the APEC organization should be promoting the free flow of investments in the region, harmonizing regulations and standards, and mapping skills in the region with an eye to helping ease restrictions on immigration.

The survey was announced before the 2012 Annual Summit of the Asia – Pacific Economic Cooperation (APEC) Forum taking place on September 7-8, 2012 in Vladivostok, Russia.

New Japanese store in town

Tokutokuya, a Japanese newcomer in the local retail industry, on Wednesday opened its first store at 206 Pasteur Street in HCMC’s District 3.

This is the third Japanese convenient store chain entering the local market following the presence of two other Japanese retailers - Daiso and Akuruhi.

At the newly-opened store of Tokutokuya, consumers can buy many essential products of Japanese quality, ranging from stationery, household goods, cosmetic to vehicle repair tools. Three price levels - VND35,000, VND40,000 and VND45,000 - are applicable for products at the store.

Masayuki Matsumoto, managing director of E.C.I company as the owner of the 100-yen shop chain Tokutokuya in Japan and many other nations, said this is the first Tokutokuya store in Vietnam.

The store is opened based on the franchise contract between the Japanese firm and Vietnam’s Duc & Viet Limited Co.

Gold prices climb to 10-month high

Gold prices in the domestic market hit a ten-month high yesterday and remained well above the global price, despite last month's intervention by the State Bank of Viet Nam (SBV) to stabilise the market.

The cost of gold hit VND46 million (US$2,190) per tael after the global price reached $1,698 an ounce - one tael is equal to 1.2 ounces - pushing the domestic price to 7.5 per cent above the global index.

This comes despite last month's intervention, when the SBV ordered Viet Nam's largest gold refiner the Sai Gon Jewelry Co (SJC) to stop producing SJC gold bullion. From August 23, SJC began producing only gold bullion of 99.99 per cent purity under the direction and supervision of the central bank, which also oversees the scale of production, when production takes place and the raw material gold supply.

Yesterday SJC, which has a 90 per cent share of the domestic market, listed buying/selling price at VND45.8/46 million a tael, a rise of VND300,000 on the previous day. Doji Group also raised its prices to VND45.45/45.6 million a tael.

Tran Nhu My, director of the Doji Group, said that people turned to gold assets as a safe-haven in the wake of negative reports from the financial markets.

My added that the lack of a readily available supply of gold locally, also played a part in pushing the domestic price higher than its global counterpart.

Using the official exchange rate of Vietcombank, local gold prices were still roughly VND2.6 million a tael higher than the world price.

The world price started to pick up late last week after the US Federal Reserve hinted at a fresh stimulus package, or a third round of quantitative easing (QE3), to aid the US economic recovery.

World gold prices marked their third consecutive monthly rise with a 4.5 per cent increase in August, the strongest rise so far this year.