Petrol, oil prices slashed dramatically

The Vietnam National Petroleum Group (Petrolimex) reduced the retail prices for a number of fuel types on 11:00 on November 7.

Accordingly, three petrol types saw a reduction of 950 VND per litre, including RON 95, which is now priced at 21,990 VND, and RON 92 and E5 bio-petrol, which now both cost 21,390 VND.

Meanwhile, diesel prices enjoyed a reduction of 520 VND per litre. 0.05S now costs 19,240 VND per litre, while 0.02S diesel is priced at 19,190 VND.

Fuel oil (FO) now stands at 15,570 VND to 16,040 VND per kilogramme, a reduction of 900 VND.

This is the 9 th time Petrolimex has slashed its fuel prices since the end of July 2014.

On the same day, the Ministry of Industry and Trade announced its Dispatch No. 11088/BCT-TTTN on fuel price management, raising the limit for the use of the price stabilisation fund from 300 VND to 600 VND per litre/kilogramme.

Can Tho earns 44.4m USD from tourism in 10 months

The Mekong Delta city of Can Tho posted a tourism revenue of 945 billion VND (approximately 44.4 million USD) in the first 10 months of 2014, up 160 billion USD compared to the same period last year.

During the period, the city welcomed 1.2 million visitors or 89 percent of its yearly target, according to the municipal People’s Committee.

Can Tho aims to attract an additional 200,000 holidaymakers by the end of the year, in an attempt to increase the sector’s total revenue by 16 percent against 2013.

Improvements in tourism quality, products, services, and cuisine combined with diversified ecological tourism have drawn an increasing number of tourists, said Director of the city’s Department of Culture, Sports, and Tourism Tran Viet Phuong.

The encouraging results were also attributed to efforts to develop eco-tourism in Khuong and Cai Khe islets, Phong Dien and Thot Not tourism complexes, he added.

The city has created conditions for economic sectors to get involved in building tourism infrastructure while taking advantage of its position as the hub of the Mekong River Delta to develop tourism.

Can Tho has cooperated with other localities to form a “tourism triangle” in a bid to promote regional tourism.

Additionally, the city has focused on training tour managers and guides, restore historical and cultural relic sites as well as traditional festivals, and intensifying tourism promotion activities in the country and abroad.

Roundtable discussion seeks solutions for fisheries sector

A roundtable on aquaculture was held in the Mekong Delta city of Can Tho on November 4, providing a chance for relevant authorities to share experiences in an effort to sustainably develop the region’s sector.

Jointly organised by the Ministry of Agriculture and Rural Development (MARD), the Steering Committee for the Southwestern Region, and the German Agency for International Cooperation (GIZ), the event took place as part of the Mekong Delta Economic Cooperation Forum, which is currently being held in Soc Trang province.

MARD Deputy Minister Tran Thanh Nam said the Mekong Delta region has a large potential for aquaculture, but faces a number of challenges, including a low investment rate, a lack of coordination between the parties involved, and an increase in the frequency of natural disasters.

To address these difficulties, Nam said all relevant stakeholders need to actively participate in the implementation of comprehensive measures.

Nguyen Van Trong, Deputy Head of the Research Institute for Aquaculture No.2, suggested relevant authorities run public awareness campaigns on the impact of climate change in order to boost the sector’s resilience.

Hua Tran Hoang, an aquaculture farmer in An Bien district in Kien Giang province, said the biggest challenges for local farmers are the lack of technical knowledge and the limited access to disease-resistant breeding stock.

He suggested farmers be trained on farming techniques and provided access to disease-resistant breeds in order to increase productivity.

Projects on Ly Son island prioritised

The Prime Minister decided to give State budget priority to key projects in Ly Son island district in the central province of Quang Ngai, while encouraging local and foreign investors to get involved in State-funded infrastructure projects applying the build-transfer (BT), build-operate-transfer (BOT) and public-private-partnership (PPP) mechanisms.

According to the PM’s decisions on mechanisms and policies to support development in Ly Son for the period 2015-2020, priority will be given to unfinished State-funded projects and other key investment projects on the island. This includes the Ly Son port (phase II), a road through the southeastern part of the island (phase II), and water supply in the district’s centre.

The PM also prioritised the provision of capital for new projects in line with the State budget, including ring roads and embankments on large and small islands, sea dyke systems, Ben Dinh port, hospitals and preventive medical centres, water supply (phase II), a fisheries information centre, and main roads.

In addition, investors operating on Ly Son island will be provided with the highest level of support in accordance with legal regulations.

Furthermore, projects in the fields of production and business will benefit from preferential access to credit for investment and export, as stipulated by the law.

Ly Son district lies 18 nautical miles off the Vietnamese coast and covers an area of 10km2. It includes three communes: An Hai, An Vinh and An Binh.

The island district has a population of approximately 2,100. The majority of residents earn a living from fishing and farming garlic and spring onions. Ly Son district is striving to become a maritime economic centre by 2025, with a focus on tourism and aquaculture.

Archaeologists found relics of Sa Huynh culture on Ly Son Island dating back to 3,000 years ago. Starting in the 16th century, a number of ethnic groups migrated to Ly Son from the mainland and have inhabited the island ever since.

The island boasts numerous forms of intangible cultural heritage, such as traditional boat races and the Hoang Sa Soldier Feast and Commemoration Festival, which was recognised as a national heritage in April, 2013.

Retail petrol prices expected to fall further

The retail selling price of petroleum will likely be reduced in the next few days, Deputy Industry and Trade Minister Do Thang Hai announced at a press conference on November 3.

The domestic petrol price was previously reduced eight times this year by a cumulative amount of 3,300 VND (15 US cents) per litre. The latest decrease which took place on October 23 brought down the price to 22,340 VND (1.1 USD) per litre.

Fuel traders are allowed to unilaterally raise prices if the rate of increase is below three percent of current prices, but they must report the increase to the ministries of Finance and Industry and Trade.

If the increase is between three to seven percent, petrol wholesalers are required to submit documents on price fluctuations of elements which make up petrol prices, as well as anticipated increases, to the two ministries for review and approval.

Fuel price increases exceeding seven percent, or increases with a significant impact on national socio-economic development and the people's living standards, must be reported to the Prime Minister for review and approval.

The Ministry of Industry and Trade (MoIT) is responsible for providing updates on world fuel prices, including base and retail prices, and the use of the fuel price valorisation fund on its website.

"Based on the world petrol market, the two ministries will reduce the retail price as soon as possible to ensure benefits to people and businesses," the deputy minister said.

Petroleum traders said they made profits of 1,087 VND per litre from the downward trend in the world market.

The country so far has 19 petrol traders, and the number will be increased to supplement petrol supply and increase competitiveness.

Ukraine-based Vietnamese enterprises seek to weather difficulties

Ukraine-based Vietnamese enterprises should stay united and take new moves to adapt to the situation in their crisis-hit host country, a Vietnamese diplomat said.

Vietnamese Ambassador to Ukraine Nguyen Minh Tri was speaking at a workshop in Kiev, Ukraine on November 2 to seek ways for Ukraine-based Vietnamese enterprises’ business development.

Representatives from 30 Vietnamese enterprises from Kiev, Kharkov, Odessa, and Cherkasy were brought together to the event, which was organised by the Embassies of Vietnam in Ukraine and in Moldova, in collaboration with the Association of Vietnamese Enterprises in Ukraine.

Ambassador Tri highlighted the role of Vietnamese enterprises in connecting and boosting bilateral trade ties and investment between Vietnam and Ukraine.

He called on them to closely cooperate with local authorities and enterprises in the homeland in order to overcome the current challenging time.

Some representatives came up with the establishment of Vietnam-Ukraine joint ventures in which the Ukrainian side is represented by Vietnamese businesses located in Ukraine as a solution to maintain long-term business in the Eastern European country where the socio-economic and political crisis has yet to end.

Vietnam invests 19.1 billion USD abroad

Vietnam has so far invested 19.1 billion USD in 904 projects in 63 countries and territories worldwide, according to the Ministry of Investment and Planning.

The projects mainly operate in the fields of mining, agriculture, forestry and seafood, electricity, and gas.

In the first nine months of this year, Vietnamese firms invested in 83 projects worth over 1 million USD in 23 countries and territories.

The investments were mainly poured in information and communications with 527.1 million USD, and agro-forestry and seafood with 348.9 million USD.

Major destinations for the Vietnamese investments included Tanzania with 355.2 million USD, Cambodia 351.4 million USD, and Burundi 170 million USD.

Italian firms explore opportunities in Vietnam

Seven leading Italian business enterprises specializing in porcelain and ceramic machinery and equipment attended a business-to-business (B2B) meeting on November 4 in Hanoi.

The event, which attracted representatives from 80 local enterprises, was held by the Italian Trade Commission (ICE) and aimed to create a good chance for porcelain and ceramic machinery importers and exporters to seek cooperation partners.

Leading technical enterprises of Italy introduced their state-of-the-art technologies and production chains for the porcelain and ceramic sector.

Bruna Santarelli, an ICE representative, expressed her strong belief that bilateral investment cooperation in this field would be strengthened in the future.

At present, Italy is the world’s leading country in technology and machinery for the porcelain and ceramic sector, particularly in terms of green technology which is friendly to the environment and proves energy efficiency.

ACIMAC is an association of Italian companies producing plants, machines, equipment, semi-finished products, raw materials and services for the ceramic sector.

For the two-year period from 2011 to 2012, Vietnam and other Asian countries for accounted for 16.9% of Italy’s total export market share of the sector.

Singapore firm to construct textile plant in Vinh Phuc

TAL Apparel Limited on November 4 received an investment certificate from local authorities of the northern province of Vinh Phuc, paving the way for the Singaporean giant to construct a US$50 million textile plant.

Local officials approved for the plant to be constructed at Ba Thien 2 Industrial Park in Binh Xuyen commune.

It is the largest foreign invested project that has received approval to date in the province and, once completed, it is anticipated that it would generate 3,500 jobs and contribute VND40 billion to the national budget annually.

Construction is expected to be completed by September of next year.

As of November 2014, Vinh Phuc province attracted 38 foreign direct investment (FDI) projects with total registered capital of nearly US$300 million.

Seminar discusses TFA’s impacts on the custom sector

Fundamental measures proposed in the Trade Facilitation Agreement (TFA) have ensured transparency of information, simplification of formalities and reduction of time, which should bring practical benefits to businesses and state management agencies in the customs field.

Deputy Director General of Vietnam Customs Nguyen Cong Binh made the statement at a seminar in HCM City on November 4 to discuss strategic partnership between the customs and business sector in the implementation of the World Trade Organisation (WTO) TFA.

Mr Binh said implementation of the TFA would help Vietnam integrate into the world economy in a faster and more effective manner.

Nestor Scherbay, Director of CTRMS Vietnam said through the TFA, Vietnam should take full advantage of technical support from the WTO’s donors and international organisations to build a trade facilitation committee which would be responsible for implementing the TFA and other agreements to enhance national competitiveness.

At present, Vietnam’s customs agencies are speeding up administrative reforms based on publicising administrative formalities and customs regulations. At the same time, Vietnam Customs and local agencies have set up support and consulting units to remove difficulties for businesses.

TPBank receives top honours for innovation

Global Financial Market Review (GFM) has presented its prestigious 2014 Most Innovative Digital Bank Vietnam Award to the Tien Phong Commercial Joint Stock Bank (TPBank).

TPBank has a proven track record for innovativeness in mobile banking and internet banking solutions and for providing the best retail products and services, the selection board announced.

Earlier, TPBank had been selected as the first bank in Vietnam using the latest HTML standard that integrated Internet Banking and Mobile Banking into one platform.

This is the first time a Vietnam bank has received the prestigious GFM award, which has become a benchmark for assessing the quality of a bank in the global financial community.

Garment industry faces shortage in skilled workers

Ho Chi Minh City has set to become a garment supply hub for the southern region and the nation’s fashion centre by 2020.

The ambition forms part of the city’s garment industry development plan with a vision towards 2030 that was made public by the municipal Department of Trade and Industry at a conference on November 3.

However, participants in the conference expressed concerns that a shortage in skilled workers could harm the industry.

According to the plan, the city’s industry will require an additional 19,500 workers by 2015 and 20,250 by 2020. Approximately 500-1000 skilled workers, such as engineers, technical experts and designers, will be needed.

Bui Mai Huong, Head of the Garment Technique Department under the Mechanical Engineering Department of the Ho Chi Minh City (HUT) University of Technology, said HUT is among the two universities in Vietnam which offer courses on garment and textile engineering. It is only capable of training 80 engineers in the field a year.

Under the garment industry development plan, the city aims to increase the industry’s production value to more than VND37 trillion (US$1.7 billion) by 2015, more than 1.5 times higher than in 2010.

The plan sets out an average growth rate of 8.5% in 2015.

To implement the plan, the city will continue to focus on creating value and supply chains for the industry, with an emphasis on environmentally friendly products with competitive designs, services, quality and prices while relocating failing inner-city establishments to industrial clusters.

Investment capital for the industry is estimated at more than VND10 trillion (US$470 million) for 2015, with on-site investments accounting for more than VND2.7 trillion (US$126 million).

SOE equitisation falling behind schedule: ministry

The equitisation of State-owned enterprises (SOEs) is lagging behind schedule as only 75 SOEs were equitised during the first ten months of this year, the Ministry of Finance said on November 3.

The equitised businesses were among 96 firms that were reorganised during the reviewed period, the ministry said, adding that it expects about 200 businesses will be equitised this year. Meanwhile, the target is 432 companies in the 2014-2015 period.

The ministry attributed the slowness of reform to a lack of determination and drastic measures in some ministries, localities and companies, along with impacts of the world’s financial crisis and domestic economic difficulties on the financial and stock markets, thus affecting SOEs’ public offering plans.

To accelerate the equitisation process, the ministry said it will continue perfecting equitisation policies and mechanisms, enhance the supervision over State-owned corporation and economic groups, and task businesses’ executives with greater responsibility for ensuring restructuring outcomes and progress.

SOE equitisation is part of economic restructuring stated in the National Assembly’s Resolution No.10/2011/QH13 on the socio-economic development plan for 2011 to 2015. The restructuring is also implemented in public investment and the banking system.

Australia sees grain opportunities in Vietnam

Australian market analysts have seen opportunities for the local grain industry to boost exports of the products in Asia, particularly in Vietnam.

“The local grain industry should target markets with differentiated products to take advantage of growing demand for grain exports in Asia, particularly in Vietnam,” Australian market analysts was quoted by the Australian Financial Review as saying.

Statistics of the Australian Ministry of Agriculture showed that the demand for Australian wheat has climbed sharply in Vietnam, where population growth and the gradual westernisation of diets have fuelled demand.

In 2014, Vietnam is expected to import around 1.3 million tonnes of wheat from Australia , up from 450,000 tonnes in 1999-2000.

The market for Vietnamese baguette represented a potential opportunity for local growers.

Strategic grains market analyst at the Australian Export Grains Innovation Centre, Peter Elliott said Vietnam is potentially suitable for Australian particular wheats and urged the local sector to target to Vietnam ’s French baguette-style market.

Meanwhile, Lloyd George, market analyst at Ag Scientia Company, pointed to weather-related issues for Australian growers in consistently producing the volume required to meet the Asian and Vietnamese increasing demand.

Additionally, the Australian grain sector also considered Indonesia and China their potential markets.

Microsoft and Bac Ninh committed to promote solid IT infrastructure

Today, the Bac Ninh Provincial People’s Committee and Microsoft Vietnam officially promote and extend their cooperation relationship through signing of the Memorandum of Understanding (MOU) today.

The MoU will reinforce the province’s ICT industry via Microsoft’s comprehensive technology applications and solutions, which enables the provincial socio-economic growth to bring better life for its people. It also outlines the mutual collaboration to deploy in focal areas including ICT infrastructure, IT infrastructure for smart city, information security, cloud computing application development, IT human resource training, applications for e-government management in social, economic areas, and IT and electronics development in Bac Ninh.

“Despite its ranking as the third position in IT-ready indication, Bac Ninh still has lots of limitations such as under-standard infrastructure and only connecting to districtal level, unability to connect to ward level, hence software applications cannot be optimised on large scale. On the other hand, IT-proficient human resources are still in shortage and weakness, information security has not been properly invested,” said Nguyen Nhan Chien, chairman of the Bac Ninh Provincial People’s Committee. “Furthermore, provincial leaders must face high pressure of extremely fast urbanisation and corollary from population growth. Thus, we truly care and consider solid IT infrastructure fortification as crucial and vital mission that enables the province to face with challenges as well as promote its competitiveness.”

Being considered an important partner in global IT infrastructure building and development, Microsoft’s aim in gradual approach and support cities’ authority is to actualise the target to build smart city, firm e-government platform, ensure maximum privacy and information security, cyber security, particularly the cloud computing application. Microsoft’s optimal technology solutions assuredly help solve Bac Ninh Province’s existing difficulties and challenges to promote the provincial IT industry development to lever for the province’s outstanding development in the future.

 “The MOU signed today with the Bac Ninh Provincial People’s Committee has significant meaning to Microsoft Vietnam. We are always aware of our responsibilities in stimulating IT application for Vietnam government, ministries and local authorities all over the country and make it our top priorities to enable Vietnam to become a nation of strong ICT industry,” Cesar Cernuda, president of Microsoft Asia-Pacific said. “With international experiences and thorough knowledge in IT sector, I totally believe in the success of this cooperation and Microsoft will endeavor to bring our best technologies and solutions to overcome existing difficulties and challenges that Bac Ninh is facing.”

HCMC to become top garment, textile service center

The Ho Chi Minh City Department of Industry and Trade on November 3 hosted a seminar to announce a plan to develop the city's garment and textile industry by 2020 with visions by 2030.

Under plan, it targets that the city's garment & textile industry will become the leading industrial sector, is able to supply the garment & textile services in the southern region and a fashion center in the country.

Accordingly, by 2015, revenue in the garment and textile industry will reach VND37,850 billion, 1.5 time higher than that in 2010. This figure will continue increasing 1.3 fold over 2015 to hit VND47,670 billion by 2020 and 1.33 fold over 2020 to touch VND63,726 billion in the next five years.

HCMC will have six fibre plants producing 150,000 tons by 2015 and seven plants making 200,000 tons by 2020.

The city will set up three textile plants with capacity of 500 million meter fabric in 2015. The number will increase to five plants with 22 million meter fabric in 2020.

Dying establishments will be removed out of the inner city to relocate in the industrial zones (IZs). Material production for the garment and textile industry will move in IZs also.

Delegates at the seminar said that the city should map out policies on training engineers, technicians and designers for the industry development.’’

Tax cut proposal to assist individuals, businesses

The Government today will submit the National Assembly a draft tax law proposing a reduction of VND5,600-5,700 billion taxes for businesses and individuals by next year.

The 17 clause draft law proposes to remove the caps on advertising costs, give business income tax incentives to those in priority fields, free tax payers from their debts and propose measures on tax and customs procedure reform.

Enterprises investing in agriculture and rural development fields will enjoy 20 percent income tax rate in 2014 and 2015 &17 percent from 2016.

Businesses in support industry and projects with capital totaling up to VND12 trillion (US$565 million) will enjoy 10 percent tax rate in 15 years, tax exemption in four years and 50 percent tax reduction in nine following years.

The Government proposes not to impose business income tax to abroad investment projects.

The caps on advertisement and marketing costs should be removed. Otherwise the 15 percent cap should be applied on advertising only not marketing and brokerage.

Boat owners, crew members and those winning lottery in casinos should be exempt from personal income tax.

Those selling their properties should be permitted to choose two tax payment methods including 25 percent of their income or 2 percent of selling price. Stock traders would be able to pay 20 percent annual income in taxes or 0.1 percent of stock selling prices.

Five percent value added tax (VAT) on fertilizer and feed should be abolished. Input VAT should be completely deducted for private investment in education, vocational training, health, culture, sports, environment and shipbuilding.

The Government proposes to remove excise tax regulation and not to charge natural resource tax on natural waters used for agriculture, aquaculture and forestry.

The NA should lift penalties to late payment of tax debts before July 1 last year for those whose partners have gone bankruptcy and who have suffered high interest rate. However, they must pay their debts before December this year to enjoy this policy.

If the draft law is passed, deducted taxes for individuals and businesses will total VND5,600-5,700 billion (US$263.47-268.17 million) in 2015, according to calculations by the Ministry of Finance. The Government will have to spend VND1,300 billion (US$61.16 million) for VAT refund.

However, the Government income source will be compensated with increasing special income tax on cigarettes, wine, beer, casino business and online games. It is estimated to raise VND896 billion in 2015, VND3,598 billion in 2016, VND5,341 billon in 2017, VND7,525 billion in 2018 and VND10,566 billion in 2019.

Budget collection moves closer to set goal

State budget collection fulfilled 91.1% of estimates in the first ten months, representing a year-on-year increase of 15.2%, according to the Ministry of Finance (MoF).

According to the MoF's latest report, in the reviewed period, budget collection valued VND 719,490 billion.

In the first nine months, the collection touched over VND 636 trillion, representing 81.3% of estimates.

As of late October, domestic collection met 90% of estimates; up 16.5% against the same period last year. Tax collected from export activities accomplished 92.2% of estimates, seeing a year-on-year surge of 14.4%.

Tax agencies sped up measures to reclaim tax arrears; tighten management especially through the classification of tax arrears and extension of tax payments.

In the January-October period, budget spending valued VND 853,645 billion, accounting for 84.8% of estimates. Disbursement of State budget investment made up around 84.9% of estimates; and that of Government bonds 74.5%.

As of late September, budget overspending was estimated at VND 134,155 billion, representing 59.9% of this year’s estimates.

As of October 24, the value of issued Government bonds reached VND221,240 trillion.

Guest worker number surpasses target

In the first 10 months of 2014, Viet Nam sent 91,143 workers (34,232 females) to work abroad, outstripping 4.76% of this year’s target and equivalent to 129.54% of the same period last year, according to theOverseas Labour Management Department.

In October, 7,774 workers went abroad including 3,878 females.

Taiwan was the largest recipient, recruiting 3,895 workers; followed by Japan 1,784 workers; the Republic of Korea (RoK) 962; Malaysia 295; Saudi Arabia 296; and Macao 207.

As of late October, Taiwan ranked first by receiving 53,851 Vietnamese guest workers; followed by Japan with 16,283; the RoK 6,662 and Malaysia 4,553.

Exports to U.S. surge

Vietnam’s exports to the United States amounted to nearly US$23.7 billion in the first ten months of this year, up 21.8% over the same period last year, according to updated figures of the Ministry of Industry and Trade.

Last month alone, Vietnam earned US$2.84 billion from exporting goods to the American market, up 17.4% month-on-month and 20% year-on-year.

The export  spike was credited to the strong rises of apparel, footwear, computer and equipment, timber and wood product, and seafood exports. These products registered average growth of over 10% compared to the same period last year.

Statistics of the General Department of Customs reflected the strong growth of Vietnam’s goods shipments to the U.S. market. In January-October, Vietnam exported US$20.8 billion worth of goods stateside, a year-on-year rise of 21.6%.

There remain many opportunities for local enterprises to boost their export of textile, footwear, seafood and other key products to the U.S., which is one of the leading export markets of Vietnam.

As for apparel, the U.S. spent US$70.8 billion importing this product in January- August, up over 2.2% against the same period last year.

More foreign corporations have plans to relocate their factories to Vietnam and TAL Group, the world’s leader in male shirts based in Hong Kong, is one of them. One in every six shirts the group sells in America is outsourced.

At present, the facilities in Vietnam contribute just 12-15% of TAL’s apparel output and the group plans to increase the proportion to 25% in the coming years.

The U.S. spent more than US$23 billion importing footwear every year while every American uses five to six pairs of shoes/slippers a year. China is now the biggest supplier of this product in the market, making up 85% of the total volume and around 70% of the value. Vietnam ranks second with 7% and 12% respectively.

PVN told to clarify oil refinery expansion

Deputy Prime Minister Hoang Trung Hai has urged Vietnam National Oil and Gas Group (PVN) to prepare a report on a project to upgrade and expand Dung Quat Oil Refinery and give an explanation of why the expansion is urgent.

The Government Office stressed the clarification request in an announcement released recently to convey the Government’s instruction.

The Deputy Prime Minister has also told PVN to evaluate and compare the efficiencies of upgrade and expansion plans for the oil refinery located in the central province of Quang Ngai. The group should analyze the plans with and without investment incentives before and after the oil refinery is expanded.

PVN should complete an investment scheme for the expansion of Dung Quat Oil Refiner and report it to the Ministry of Industry and Trade before November 15 this year.

The ministry has been assigned to establish a council consisting of members from relevant agencies and the Quang Ngai government to appraise the expansion project and submit the result to the Government this month.

The ministry will guide Quang Ngai authorities on plans to develop thermal power and oil and gas projects in the province in accordance with investment regulations.

Quang Ngai should be responsible for site clearance and compensation for the expansion project as well as resettlement areas for affected families, if any.

Covering 810 hectares of land and water surface, the refinery now has a maximum processing capacity of 6.5 million tons of crude oil a year. Its annual capacity would be increased to 10 million tons if the expansion project is implemented, according to Binh Son Refining and Petrochemical Company Limited, which operates the refinery.

An additional 108 hectares would be needed for the expansion project, which is estimated to cost US$1.8-2 billion and will take around 60-78 months to complete.

VSSA wants transparent allocation for sugar imports

The Vietnam Sugar and Sugarcane Association has again urged the Ministry of Industry and Trade to set up a transparent mechanism of allocating the allowable volume of sugar imports to ensure health competition among importers.

Vietnam has to allow imports of at least 70,000 tons of sugar every year in accordance with the commitment the country made when joining the World Trade Organization (WTO), but sugar imports are mainly allocated to enterprises and not decided via public auctions.

Many industry insiders described the current allocation as an ask-give mechanism and said unfair treatment among importers is unavoidable.

VSSA chairman Nguyen Thanh Long said Vietnam will import around 73,000 tons of sugar this year as its pledge with the global trade club WTO, with 40,000 tons of which allocated to the domestic enterprises in need of sugar to process and turn out their beverage and food products and the rest to sugar refining facilities.

The sugar imports, according to VSSA, will impact sugar mills in a year when sugar inventory is high and domestic demand for this product is low.

Long said sugar imports can be understandable but what matters most is the transparency of the current allocation mechanism for sugar imports. Such a mechanism has triggered unfair competition among domestic sugar firms as those granted with import quotas can benefit much from the price difference between locally-made and imported sugar products.

The association has many times asked the Ministry of Industry and Trade to pick up importers via public auctions as a replacement for the sugar import allocation mechanism. But the ministry said bidding cannot be applied for now as this is not included in the contents Vietnam agreed with other WTO members.

The ministry’s explanation, according to Long, is not convincing.

According to VSSA, domestic plants had produced 36,800 tons of sugar as of October 15, rising by 7,100 tons over the same period last year.

Higher tariff sends fertilizer import down

Though provinces in the Mekong Delta have begun their winter-spring rice crop, fertilizer import in October fell versus September after the Ministry of Finance doubled the import tariff on this product to 6%.

According to the Ministry of Agriculture and Rural Development, 356,000 tons of fertilizer worth US$128 million was imported into Vietnam last month, down 61,000 tons and US$20 million over the previous month.

Nguyen Minh Dang, director of private firm Minh Dang which specialized in fertilizer and agricultural materials in Can Tho City, pointed out the import tax spike as one of the main reasons behind the fertilizer import slide.

He demonstrated that urea fertilizer imported from China was subject to a tariff of 3% and sold at the same price with locally-made urea fertilizer, but with the new tax, the price of imported products is higher and cannot compete with local products.

Fertilizer prices in the Mekong Delta are seen stable this week. Fertilizer traders sell a 50-kilogram bag of urea at VND375,000-395,000 and Chinese-made DAP fertilizer at VND590,000-615,000 per bag.

Fertilizer traders forecast fertilizer prices in the Mekong Delta would increase by VND10,000-20,000 per 50-kilo package in the coming time due to increasing demand.

Ha Nam leads in basic construction debt

The northern province of Ha Nam has overtaken Ha Giang Province to become the leading debtor of contractors participating in State-funded basic construction projects.

The Government’s recent report on public investment, State-owned enterprises and the banking system indicated the debt owed by the State to developers of basic construction projects in localities has outnumbered that at ministries and agencies.

By the end of last year, the debt in basic construction projects funded by the State budget and government bond sales at around 23,400 projects exceeded VND57.9 trillion. Of which, the debt by the State made up VND51.1 trillion and dropped to nearly VND44.6 trillion by the end of June this year.

As of end-June, the combined basic construction debt in 21 provinces was around VND35.5 trillion, much higher than the VND5.1 trillion at ministries and agencies.

Ha Nam topped the list of provinces, with nearly VND3.5 trillion as of the end of June compared to VND3.8 trillion by the end of last year. Ha Giang Province ranked second with VND5.3 trillion as of the end of last year but falling to VND3.8 trillion as of June 30 this year.

The debt was over VND2.9 trillion in Vinh Phuc Province, nearly VND2.8 trillion in Thai Binh Province, around VND2.6 trillion in Danang City and over VND1.8 trillion in Phu Tho Province.

The problem is that budget collections in the localities are far below the amount of their basic construction debt. For example, Ha Nam is expected to collect total taxes and fees of only VND2.1 trillion this year, much lower than its debt of VND3.5 trillion.        

The debt in some of the provinces was reportedly huge but they have not taken any effective settlement measures, according to the report send to the ongoing session of the National Assembly in Hanoi.

Property experts warn of market stagnation

Experts have warned that the local real estate market may turn volatile again as many property developers are in a new race to invest in new projects, especially in the high-class segment.

The property market lacks a necessary supervision by administering agencies at a time when it is showing clear signs of recovery, heard a conference held by the HCMC Real Estate Association’s (HoREA) in HCMC over the weekend on the realty market in January-September and the final three months of this year.

Experts said many realty enterprises are preparing to carry out new projects to capitalize on the market recovery.

Do Thi Loan, vice chairwoman of HoREA, said there have been two big property projects introduced in HCMC in recent months. Vingroup is developing Vinhomes Tan Cang in Binh Thanh District with over 10,000 apartment units scheduled for completion between 2017 and 2018, and Masteri Thao Dien in District 2 will provide the market with more than 3,000 units.

Many other property companies are rushing to develop new projects and this may lead to a huge supply in the coming years.

A property expert told the conference that if realty companies are not be informed well of the market and are allowed to develop their projects as they want while demand remains low, the property market would likely fall back into stagnation as was seen years ago. Therefore, administering agencies should step in and provide them with transparent information about the real situation.

The expert gave painful lessons in the past years when developers have used all possible means to try to sell 200-300 apartments of their projects but they have not been able to find enough buyers.

Loan proposed the HCMC departments of construction, natural resources-environment, and planning-architecture strictly check and monitor new applications and provide the market with updates.

Loan noted that banks also lack pieces of advice as they lend to homebuyers with lax conditions.

Nguyen Van Danh, deputy director of the Department of Construction, said in support of Loan that the agency will work out a scheme based on the comments of researchers and realty enterprises in order to develop the property market sustainably.

Le Hoang Chau, chairman of HoREA, told the conference that the association has plans to organize a Vietconreal exhibition on real estate, construction, building materials and interior decorations next year as well as set up a realty club for members to exchange experiences and updates about the property market.

The HoREA now has 1,066 members, including 588 firms and 478 individuals.

HSBC: New orders fuel job demand

HSBC Bank said companies in Vietnam have taken on extra staff at the strongest pace since January as the country’s manufacturing sector improved in October, fueled by more new orders.

The bank in a report released on November 3 said staffing levels rose for the second month running during October. Moreover, the rate of job creation was solid, having quickened from the previous month to the joint-sharpest in 2014 so far.

Anecdotal evidence suggested that increased production requirements were the main factor leading employment to rise. Close to 18% of panelists reported a rise in labor demand, twice the proportion that lowered employment, the bank said.

The headline seasonally adjusted Purchasing Managers’ Index (PMI) posted 51 in October, down slightly from 51.7 in September but it still signaled an overall improvement in operating conditions in the sector. Business conditions have strengthened in each of the past 14 months.

HSBC noted that manufacturers in Vietnam saw new orders up for the second consecutive month following a marginal decline in August, although the latest expansion was weaker than seen in September. Some panelists reported that overall new orders had been boosted by new export sales which increased at the fastest pace in six months.

Although input prices continued to rise in October, the rate of inflation slowed for the third consecutive month and was the weakest since June 2013. While some panelists reported that suppliers had raised charges, others signaled falling prices in world commodity markets.

Cost savings enabled some firms to lower their output prices, leading to the first overall reduction in charges in the sector since May.

In addition, suppliers’ delivery times shortened in October, ending a seven-month sequence of lengthening lead times. According to respondents, vendors had been able to respond favorably to requests for faster deliveries as a result of sufficient stock holdings.

Meanwhile, despite higher input buying, stocks of purchases decreased as inputs were used in the production process.

Stocks of finished goods increased as items were held prior to delivery to clients.

Trinh Nguyen, Asia Economist at HSBC, said Vietnam is on a gradual path to economic recovery. The October PMI shows that the manufacturing sector continues to expand on higher export orders, highlighting the country’s competitiveness in labor intensive manufacturing.

“The employment index grew sharply, a positive sign of manufacturers’ outlook for future demand. We expect the sector to continue to grow on better external demand. What’s left is for domestic sectors to kick in, allowing Vietnam to return to its long-run average,” she said.

Impact of WTO pact discussed

The potential impact of the World Trade Organisation Trade Facilitation Agreement that Viet Nam signed in 2013 on its businesses and the customs-to-business partnership under the agreement were among the issues discussed at a workshop in HCM City yesterday.

According to Nguyen Toan, director of the Viet Nam Customs' International Cooperation Department, the TFA was an agreement binding on all WTO members that seeks to simplify customs procedures by reducing costs and improving their speed and efficiency.

It also seeks to balance facilitation and legal compliance, set an effective co-operation mechanism for customs authorities and between customs and other agencies, and promote the use of technology.

The agreement covers many aspects like transparency and rights of businesses, goods in transit, and procedures, fees and charges imposed on or in connection with importation/exportation and transit.

It will provide assistance to developing and least developed countries in updating their infrastructure, training customs officials, and meeting other costs associated with implementing the agreement.

Tran Huu Huynh, chairman of the International Trade Advisory Committee, WTO Centre, at the Viet Nam Chamber of Commerce and Industry, said Viet Nam ranked 65th out of 180 nations in efficiently performing customs procedures.

One day's reduction in the customs clearance time could save the country's businesses US$1.6 billion, he said.

The TFA was a blueprint for reforming customs procedures and bringing practical benefits to the economy, he said.

Domestic law had already covered these issues, but had not been enforced effectively.

Talking about the TFA's benefits, he said it would help businesses reduce the customs clearance time and costs and strengthen their competitiveness to boost exports and expand markets.

Herb Cochran, executive director of Amcham Viet Nam, said the TFA would simplify customs and other import/export procedures, speed up supply chains, reduce cost by 5-10 per cent, and reduce corruption.

As a result, small and medium-sized enterprises in Viet Nam and other developing countries would be encouraged to participate in international trade, he said.

Tran Ngoc Liem, deputy director of the Viet Nam Chamber of Commerce and Industry's HCM City chapter, said customs reform was one of the Government's priorities.

Businesses, especially those involved in foreign trade, were awaiting the results of these reforms, he said.

The workshop would help businesses understand the country's TFA commitments and benefits, and they could work together with customs to implement the agreement in the most effective way, he said.

It was organised by Viet Nam Customs, the VCCI, and USAID.

Dai-ichi Life Viet Nam maintains high growth

Dai-ichi Life Insurance in Viet Nam has announced strong sales results in the first nine months of 2014, with new business premiums reaching over VND640 billion (US$30.4 million), an increase of 33 per cent against the same period last year.

Total premium income reached nearly VND1.7 trillion ($80.5 million), an increase of 36 per cent over the same period in 2013. Preliminary profits in the first three quarters was estimated at VND160 billion ($7.6 million), according to the company.

Quang Ngai to develop $1m shipyard

The central province of Quang Ngai has approved the building of a VND22 billion (US$1 million) composite-hulled shipyard at Sa Ky port.

Built by Quang Minh Ltd. Co., the shipyard will produce steel and wooden fishing vessels for local fishermen and neighbouring provinces.

The province is scheduled to get 189 new fishing ships in the 2014-16 period. It currently has a fishing fleet of 5,500 vessels, of which 450 are offshore fishing boats.

Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR