Yanmar launched joint venture on agricultural machinery

Yanmar Vietnam, a joint venture to manufacture agriculture machinery between Vietnam’s Sovico Holdings and Japan partner Yanmar Group on December 4 took opening ceremony in Ho Chi Minh City.

Licensed in August this year, the joint venture has the total investment capital of VND294 billion ($14 million). Following this, Yanmar Vietnam will import, distribute, management consult and maintenance agricultural machinery in Vietnam market and will assembly and manufacture in near future.

According to Naoki Kobayashi, member of the Board and managing director of Agricultural Machineries & Equipment of Yanmar Group, the company will introduce to Vietnam the leading quality agriculture machineries with best warranty, maintenance policy and genuine spare parts supplying.

“Yanmar’s agricultural machinery products will contribute to the implementation of Vietnam policies in mechanisation, productivity and quality improvement of agriculture sector in Vietnam,” said Kobayashi.

Yanmar Group was founded in 1912 and its headquarter is in Osaka, Japan. Yanmar is the leading group in Japan in the field of agricultural machinery including combine harvesters, tractors, transplant machines, marine engines, construction machines and power generators. In 2013, the group earned $6.5 billion in sales and its net income was $450 million.

Internet Day celebrates growth of online activity

Officials recognised the importance of the internet to daily life but stressed the importance of data security and other precautionary measures during the Viet Nam Internet Association's Internet Day event held yesterday in HCM City.

"The Viet Nam Internet Association would like to create an annual internet day or event for users, enterprises, organisations and State offices to prepare for co-operation among international partners and the community," Vu Hoang Lien, chairman of the association, said yesterday at a conference and exhibition held in the city.

Lien said that internet infrastructure had developed well in the country, with fiber optical cables linked to many cities.

"Cloud computing and content distribution network applications have also promoted efficiency in internet-based IT application and development," Lien said.

Mobile devices connected through 3G have enhanced the usage of internet applications in daily life as well, and the average internet access speed along with cheap prices for internet service, especially for 3G, have attracted more internet users.

"The online community and over-the-top (OTT) services have changed communication and it has seriously affected real life," the chairman said.

In addition, online marketing, internet banking and e-commerce have developed well and brought huge benefits to internet users as well as enterprises.

However, he noted that information security on the internet "is still a problem, and there are concerns from internet users, enterprises and governments."

To create a healthy internet environment, the VIA chairman suggested that Viet Nam should create reliable service providers, quality service, civilized users, a healthy online community and a legal framework.

According to Business Monitor International, 34 per cent of Viet Nam's population of 92 million are using the internet.

Viet Nam ranks 15th in the world for internet user growth, with a 9 per cent annual growth rate.

Thanks to the growth, related internet services like added services, e-commerce, digital content and online applications – especially for mobile applications – increased significantly this year.

In e-commerce, 39 per cent of internet users were buying products or services online.

Sixty per cent of them notice adverts on online newspapers, and the over-the-top services have expanded greatly. For instance, 20 million people use Zalo services and send 250 million messages a day.

Korean firms come hiring at HCM City job fair

Forty five South Korean firms in industries like manufacturing, construction, logistics, services, and finance are taking part in a Korea-Viet Nam job fair that opened on Friday at HCM City's Nikko Sai Gon Hotel.

Organised by the Korea Trade and Investment Promotion Agency and the South Korean consulate in the city, the fair seeks to connect Korean companies with young Vietnamese talent.

The participating firms include Hyosung, STX, Lotte Mart, Daewoo International, and Korea United Pharmaceutical. They hope to recruit people for jobs in marketing and sales, taxation and accounting, quality control, design, merchandise, legal, and mechanical engineering.

South Korea is the biggest foreign investor in Viet Nam this year with US$3.6 billion or 26.3 per cent of total FDI, according to the Foreign Investment Agency.

Vietnam sees eleventh petrol price cut

The retail prices of petrol have been reduced for the eleventh consecutive time this year, falling by VND320 per litre on Saturday, the Viet Nam National Petroleum Group (Petrolimex) said.

The adjustment pushed down the price of a litre of RON 92 and RON 95 to VND19,930 and VND20,530, respectively. After eleven rounds of cuts, petrol prices have been reduced by VND4,180 per litre. A litre of diesel and kerosene was also reduced by VND240 and VND280, respectively, while mazut saw a reduction of VND320 per kilogram.

According to the Petrolimex, the decrease was in line with principles for determining the sales price, as stated in Government Decree 83/2014/ND-CP on petroleum business, as well as a joint order by the Ministry of Finance (MoF) and Ministry of Industry and Trade (MoIT), which asked fuel dealers to reduce retail prices.

On the same day, the MoF told fuel wholesalers to reduce their use of the fuel price stabilisation fund from VND600 to VND300 per litre to offset their losses.

Dak Nong hosts two Vietnamese goods fairs

The HCM City-based Business Studies and Assistance Centre in collaboration with the Dak Lak Province's Department of Industry and Trade will organise two Vietnamese goods fairs this week.

The first fair will take place in Krong No District from December 8-10 and the second one from December 12-14 in Cu Jut District, promising to offer more shopping choices for local consumers, many of them ethnic minority people.

The fair has attracted the participation of 33 companies in various sectors, including food, confectioneries, household utensils, cosmetics, fashion and pharmaceuticals.

Along with attractive promotions, firms together with the organisers will present 60 gifts to needy students and poor households in the districts.

The events also include programmes to connect small traders in traditional markets with businesses, and roundtable meetings to provide farmers with pepper-growing techniques as well as instruct in Vietgap standards for coffee, rice and pepper production.  

Korean firms come hiring at HCM City job fair

Forty five South Korean firms in industries like manufacturing, construction, logistics, services, and finance are taking part in a Korea-Viet Nam job fair that opened on Friday at HCM City's Nikko Sai Gon Hotel.

Organised by the Korea Trade and Investment Promotion Agency and the South Korean consulate in the city, the fair seeks to connect Korean companies with young Vietnamese talent.

The participating firms include Hyosung, STX, Lotte Mart, Daewoo International, and Korea United Pharmaceutical. They hope to recruit people for jobs in marketing and sales, taxation and accounting, quality control, design, merchandise, legal, and mechanical engineering.

South Korea is the biggest foreign investor in Viet Nam this year with US$3.6 billion or 26.3 per cent of total FDI, according to the Foreign Investment Agency.

Shares up despite investor caution

Overall, shares rose last week, though investor sentiment remained cautious.

On the HCM City Stock Exchange, the VN-Index finished at 578.76 points, up 2.16 per cent over the previous week.

The HNX-Index on the Ha Noi Stock Exchange also improved by 1.37 per cent to reach 88.63 points.

Meanwhile, the average market value on both exchanges declined to VND1.96 trillion (US$92 million) in HCM City and VND829.3 billion ($38.9 million) in Ha Noi.

The declines in the preceding week lured investors back to help indexes gain value. However, the caution prevailed, hampering the rising momentum of the two bourses and causing liquidity to decrease throughout the sessions.

Further, blue chips continued to lead the market rally, though transactions were erratic.

Cash flow shifted quickly between sectors, as it focused on logistics shares during the first two days of the week, then concentrated on purchasing securities stocks on Wednesday. Meanwhile, in the final three sessions, banking stocks were favoured.

Construction and real estate shares also outperformed several other sectors, though the momentum weakened.

Trading on some specific shares was also affected by activities of foreign funds last week. Typically, Sai Gon Securities Inc (SSI) was added to the FTSE Viet Nam Index, while Sacombank (STB), Da Nang Rubber (DRC) and Vinh Son – Song Hinh (VSH) were excluded.

At the same time, FTSE Viet Nam All-Share Index added construction firm Sudico (SJS), beverage company Vinh Hoan (VHC) and Viet Nhat Medical Instrument (JVC) to its portfolio, while removing Eximbank (EIB) and Binh Minh Plastic (BMP).

Although foreign investors reversed their status to buy shares on Thursday and Friday, they still concluded the week as net sellers by a margin of nearly VND78.7 billion ($3.7 million). Also, property developer Hoang Anh Gia Lai (HAG) rose as a notable listed code when foreign investors sold it at a net VND242 billion ($11.3 million).

Of note, Sai Gon Securities Inc's director of retail research and investment advisory predicted last week's trend would continue for several additional sessions to accumulate in a rally.

Plan aims to improve pharmaceutical industry

The Health Ministry launched a development plan for the pharmaceutical sector on Saturday in co-operation with the World Health Organisation.

Under the plan, Vietnamese companies will produce 20 per cent of materials for drug production and 80 per cent of drugs used in healthcare by 2020.

Additionally, there will be one pharmacist for every 4,000 people. All drug stores, vaccines and biological products verification centres and 50 per cent of testing centres will meet Good Pharmacy Practices standards.

Deputy Minister of Health Pham Le Tuan said at the conference that Viet Nam had integrated successfully with other countries to provide sufficient drugs for the market.

However, patients were often given the wrong prescriptions and clinical pharmacists were incompetent at providing correct usage information.

Moreover, drug producers could only produce simple generic drugs, as they spent little on research and development and operated without macroeconomic direction.

As of November, 39,000 drug retailers, 133 drug producers and 10,000 drug stores met Good Pharmacy Practices standards. Vietnamese companies were also able to produce vaccines to prevent 10 of the 12 diseases listed in its vaccination programme.

Tuan urged companies to work with suppliers to utilise Vietnamese raw materials and improve control over their origin and quality.

Customs budget revenue exceeds annual target

The General Department of Customs' budget revenue as of November 26 reached VND225.4 trillion (US$10.6 billion) or 100.6 per cent of the 2014 target.

Collections of the export-import, special consumption and environmental protection taxes reached VND84.9 trillion ($3.9 billion) while those of the value added tax reached VND140.2 trillion ($6.6 billion).

The department's total budget for this year is expected to reach VND248.5 trillion ($11.6 billion), a 12.2-per cent year-on-year increase and 110.9 per cent of the forecast for this year.

The department attributed the high revenue to the 12.8-per cent year-on-year increase in collections in the first 11 months of this year.

The Viet Nam customs department this year instructed local customs departments to tighten the collection and disbursement of the State budget and tackle difficulties in tax policies in a timely manner.

The customs department also increased the implementation of post-customs clearance and inter-sectoral co-operation to prevent and detect trade fraud.

In turn, the local departments proposed measures to prevent losses and increase management by price consultation and price and tax code assessment.

The high revenue was also attributed to the effective instruction of the Viet Nam Communist Party, National Assembly and Government and provincial implementation of plans to achieve annual national socio-economic development goals.

Store brands gain in popularity

Attitudes toward retailers' private labels or store-branded products are improving throughout Southeast Asia, Nielsen, the global information and measurement company, said in a report released last week.

Most consumers in the region said their perception of private label brands had improved over time and the majority viewed private label brands as a viable alternative to named brands, according to the 2014 Nielsen Global Private Label Report.

Eighty-four per cent of consumers in Viet Nam say their perception of privatelabel brands has improved over time, along with 83 per cent of Thais, 77 per cent of Filipinos, 70 per cent of Malaysians, 66 per cent of Indonesians and 64 per cent of Singaporeans, compared to 71 per cent of consumers globally.

Sentiment is particularly high in the Philippines where 75 per cent of consumers view private label brands as a good alternative to named brands, 69 per cent feel the quality of private label brands is on par with named brands, and 54 per cent believe some private label products are as good or better than brand name products.

Sentiment toward private label offerings is also high in Thailand and Malaysia where 65 per cent and 62 per cent consumers, respectively, believe private label brands are a good alternative to named brands products.

Fifty-five per cent of Thais and 52 per cent of Malaysians feel the quality of private label brands is on par with named brands, while 61 per cent of Thais and 46 per cent of Malaysians believe some private label offerings are as good or better than brand name products.

"Improving perceptions, however, have yet to convert to any kind of significant lift in sales at the check-out, and private label share in the region has increased only slightly over the last decade as named brand promotional activity increases," said Pete Gale, head of Retailer Services for Nielsen in Asia Pacific.

While 66 per cent of Singaporean shoppers and 28 per cent of Thai shoppers are regular private label buyers, in both markets less than 10 per cent of baskets contain a private label product. Overall share of private labels in the region remains low: in Singapore, it is 6.3 per cent, and in Thailand the share sits at just 2.9 per cent.

Perceptions around the value for money offered by private labels are less positive in all Southeast Asia markets than the global average.

Just 46 per cent of Indonesians believe private label brands offer good value for money, the lowest in the region, and sixth lowest globally, followed by 55 per cent in Viet Nam, 57 per cent in Singapore, 58 per cent in Malaysia, 59 per cent in Thailand and 66 per cent in the Philippines, compared to 67 per cent of consumers globally.

Conversely, as sentiment around private label quality lifts, an increasing number of consumers say they are prepared to pay extra for private label products they like.

Filipinos rank highest globally, with 72 per cent saying they are willing to pay the same or more for a private label product they like, along with 69 per cent of Vietnamese, the fifth highest globally, and 64 per cent of Thais, the ninth highest globally.

Local banks continue to cut interest rates

The total outstanding loans of Viet Nam-based credit institutions increased by 10.22 per cent in the first 11 months of 2014 over that of end-2013.

The State Bank of Viet Nam (SBV) also revealed on Friday that lenders had actively reduced interest rates for existing dong loans.

Last November 16, loans with annual interest rates of more than 15 per cent accounted for 3.95 per cent of all loans, which was less than the 6.3 per cent recorded at the end of last year.

The ratio of loans with interest rates of more than 13 per cent likewise fell from 19.72 per cent to 11.1 per cent.

The SBV said it would continue to ask commercial banks to slash lending rates further to below 13 per cent. Interest rates declined by up to two per cent this year and were backing production and business activities while assuring national goals of controlling inflation and stabilising the monetary market.

Loans were focused on Government-prioritised areas and banking system liquidity remained healthy, with deposits at credit institutions expanding by 13.33 per cent in 2014 over that of end-2013, it added.

Between now and year-end, the SBV will closely monitor the market and ensure comprehensive policies for monetary stability, especially on foreign currencies and exchange rates.

It will also provide further support for businesses and speed up credit institution restructuring and bad debt resolution to ensure systematic security and enable an overall lending growth of 12 to 14 per cent for 2014.

Firms complain labour laws in need of clarity

The Labour Code and Trade Union Law are vague, making it hard for businesses to comply with them, a seminar held in HCM City last Thursday to provide updates on the two laws heard.

Miki Yasufumi, a lawyer at VILAF International Law firm and Anderson More and Tomotsune Japan Law Firm, said a company with a workers' union had to contribute 2 per cent of salaries to the Trade Union Fund.

Companies without one have to pay to the "Upper Trade Union" but "we do not know how, where, and when to pay," he said.

Business executives complained that provisions on overtime wages for night shifts were unclear, resulting in various interpretations and uneven implementation.

The Labour Code states that a "worker who works at night shall receive a wage as per regulations on overtime pay and wages for night shift plus 20 per cent of the wage as per wage unit or of the wages for daytime job."

But the rationale for adding the 20 per cent was unclear, they said.

Ho Xuan Dung, deputy general director, legal, at Windsor Management Corporation, said the law stipulated that if someone works overtime many days in a month, "the employer must arrange for compensatory leave for the employee."

"Businesses want to know clearly about the overtime rate if compensatory leave is given and if it is not, and if compensatory leave is mandatory even if overtime payment is made," he said.

Some delegates complained about the inconsistencies in regulations on foreign employees and the cumbersome procedures in applying for work permits.

They asked why the validity of work permits for foreign workers is reduced to two years from three while their labour contracts have the maximum term of 36 months.

Veera Maenpaa, a lawyer and senior associate at PwC Legal, said regulations changed too quickly, making it very hard for foreign companies to keep track.

They needed to be more stable as well as transparent, she said.

Nguyen Thi Dan, head of the Ministry of Labour, Invalids and Social Affairs (MOLISA) office in HCM City, pointed out one more irritant for companies.

The Labour Code requires employers to discuss workers' salary scales with the trade union and publicise them at the workplace.

"But there are no unions at many companies, making it difficult for employers to comply with this provision, while disclosing wage levels causes resentment," she explained.

Mai Duc Chinh, vice president of the Viet Nam General Confederation of Labour, complained about companies, saying many employers had little awareness of the Trade Union and did not consider it a partner. So they did not create conditions for grassroots trade union committees to perform their work, he said.

Citi finalises 245m USD financing deal for power transmission corporation

Citi Vietnam on December 5 announced the completion of an Export Credit Agency-supported financing package for the National Power Transmission Corporation ("NPT") for the construction of power transmission projects in the south of Vietnam.

The 245 USD million financing package has two term loan facilities with a tenor of 13 years.

The term loan facilities are guaranteed by the Ministry of Finance of Vietnam and insured by the Japanese Export Credit Agency, Nippon Export and Investment Insurance (NEXI). Under these facilities, Citi is the Sole NEXI Coordinator, Agent and Joint Lead Arranger together with Sumitomo Mitsui Trust Bank Limited, Singapore Branch ("SMTB"). The original lenders are Citibank Japan Ltd., SMTB, The Shizuoka Bank, Ltd., The Tokyo Star Bank, Limited, The Bank of Fukuoka, The Gunma Bank, Ltd. and The Chiba Bank, Ltd., Hong Kong Branch.

The loan, which follows another 200 million USD term loan in 2011, will finance the construction of four power transmission projects: the Duyen Hai – My Tho 500kV transmission line, the Long Phu – Soc Trang 220kV transmission line, the Long Phu – Can Tho – Tra Noc 220kV transmission line, and the Can Tho 220kV sub-station. This system will transmit electricity generated in Long Phu and Duyen Hai power centres to industrial zones in Soc Trang and Hau Giang provinces, as well as Can Tho and HCM City .

"With annual investments ranging from 15 to 18 trillion VND in the 2014-2020 period, EVN NPT is proactively diversifying capital sources from ODA, export credit and domestic trade in order to meet the demand of developing the national power grid system," said NPT Chairman Dang Phan Tuong.

Dennis Hussey, Managing Director and Citi Country Officer for Vietnam, said, "Over the past 20 years in Vietnam, we have worked on numerous innovative financing transactions, and this is a perfect example of how our international knowledge and local expertise work together perfectly.

Vietnam sees prospect for fruit, vegetable exports to UAE

Vietnam eyes prospects for its fruit and vegetable exports to the United Arab Emirates (UAE) as it earned 11 million USD from shipping these products to the country in the first 10 months of this year.

The Southeast Asian nation mainly exported dried coconut pulp and fresh fruit and vegetable to this market, according to the Ministry of Industry and Trade’s Africa, West Asia and South Asia Market Department.

The launch of direct air routes between the two countries by Emirates and Etihad has offered a good chance for Vietnam’s fruit and vegetable exports to the UAE.

Vietnam’s fruit and vegetable export turnover is expected to hit a record of 1.4 billion USD in 2014, said the Ministry of Agriculture and Rural Development.

China now leads Vietnam's 10 major importers of the products with 28.6 percent of market share, followed by Japan with 4.74 percent, the Republic of Korea with 3.76 percent and the US with 3.44 percent.

Last year, the country shipped abroad more than 1 billion USD worth of fruit and vegetables, compared to 827 million USD in 2012.

Vinamilk to implement cow-breeding project in Tay Ninh

The Vietnam Dairy Products Joint Stock Company (Vinamilk) will start a project to raise 8,000 dairy cows in southern province of Tay Ninh in 2015.

To carry out the project, the company will import 2,500 cows in early 2015 and the rest by the end of 2016.

According to Chairwoman of the provincial People’s Committee Nguyen Thi Thu Thuy, the project, covering 685 ha of land in Long Khanh commune, Ben Cau district, was licensed in 2012 with a total investment of 700 billion VND (33 million USD).

Its aim is to produce 35 million litres of milk per year.

Vinamilk will build a milk processing factory here to reduce costs and provide more jobs for locals, she added.

Soc Trang’s export turnover hits all-time high

The southern province of Soc Trang saw a strong growth in its 2014 export turnover, from 480 million USD last year to an estimated 650 million USD, the highest on record.

The growth was buoyed by solid performance of the fisheries sector which brought home 610 million USD, up 23.1 percent year-on-year and 41.8 percent from its set target.

Other commodities, including rice, salted mushroom and duck eggs, fruits and machinery, raked in over 40 million USD.

The province set the goal of earning 700 million USD from exports next year, with 640 million USD contributed by seafood sector.

Central Highland province promotes B’Lao tea brand

The Central Highland province of Lam Dong will host the fifth Lam Dong Tea Culture Week in Bao Loc city of on December 20-25 with the aim of promoting its B’Lao tea brand.

As part of the 2014 Central Highlands – Da Lat National Tourism Year, the event means to introduce tea cultivated in Lam Dong Plateau to visitors.

Lam Dong is one of the major tea growing provinces in the country with around 22,000 ha, producing over 200,000 tonnes of tea each year.

Bao Loc city is famous for the B’Lao tea brand – recognised by the Vietnam Record Organisation as one of the top five tea specialities in the country.

A wide range of activities will be held during the culture week, such as tours to tea planting farms and processing facilities, a workshop on solutions for the sustainable development of the tea sector, and an exhibition on tea products.

Participants will also have opportunities to join a tea-picking contest at Tam Chau tea farm.

Oil import tax raised as global prices fall

The Finance Ministry on December 4 increased the maximum preferential import duty on oil and petrol by 10 to 15 percent to touch 40 percent.

This is to compensate for the State budget's loss in the wake of a sharp drop in oil prices in the global market. Vietnam is a crude oil exporter with an export volume of 1.3 million tonnes last year.

Under directive 17728/BTC-CST, the highest import duty will be imposed if the petrol, kerosene, diesel and mazut prices listed by Platt in the Singapore market are below 60 USD per barrel within 15 days on average before the tariff revision day.

When Platt's price is between 60 USD and 75 USD per barrel, the maximum import duty will be 35 percent on petrol and kerosene, and 30 percent on diesel and mazut.

The import duty will be reduced to 25 percent for petrol and kerosene, and by 20 percent for diesel and mazut, if Platt's prices fluctuate around 75 USD to 95 USD per barrel.

The lowest import duty of 15 to 20 percent will be imposed when a barrel of fuel costs more than 95 USD.

According to the previous regulations, the maximum preferential import duty on petrol and gasoline was only 30 percent if the product's price in the Singapore market was 45 USD to 60 USD per barrel. The rate for diesel and mazut was only 25 percent.

According to the ministry, the maximum preferential import duty is among the references for the ministry to consider issuing guidelines on the detailed import duties on petrol and oil products.

Domestic petrol and oil importers often depend on the duty to build their business plans.

The oil price in the global market has dropped sharply from 105 USD per barrel in late July to 68.53 USD late last month, the lowest in the past four to five years.

Minister of Government Office Nguyen Van Nen said at a recent press conference that the State budget will lose 1 trillion VND (46.948 million USD) if the global oil price is reduced by 1 USD.

ASEAN Extractive Industries Governance Framework introduced

How to apply the ASEAN Framework for Extractive Industries Governance in Vietnam’s condition was the focus of a workshop held by the Centre for People and Nature Reconciliation (PanNature) in Hanoi on December 5.

Speaking at the event, PanNature Director Nguyen Viet Dung said that the governance framework serves as a tool to help ASEAN member countries develop extractive industries responsibly and transparently, thus contributing to promoting sustainable economic growth at regional, national and local levels.

It provides principles and prescriptions to harmonise policies related to this field as well as guidance to set up tools supervising resources exploitation in each member state, he stated.

Extractive industries play an important role in attracting investments and providing input materials for industrial production as well as greatly contribute to economic growth in many ASEAN nations.

Especially, oil, gas and mineral exploitation is considered a key field to realise common goals of the ASEAN Economic Community, scheduled to be established by 2015.

Most ASEAN countries with rich natural resources are facing challenges in governing its extractive industries. Bad governance has lead to slow economic growth, environmental degradation, and social conflicts.

Seafood export enjoys trade surplus of 5 billion USD

Seafood export contributed 5 billion USD to a trade surplus of 8.2 billion USD run by the agriculture sector in the first 11 months of 2014.

During the period, seafood brought home 7.2 billion USD and is to earn 7.8 billion USD by the end of the year, Deputy Minister of Agriculture and Rural Development Vu Van Tam reported at the first meeting of the aquatic disease prevention and control steering committee in Hanoi on December 4.

He was optimistic that the maintenance of the trend would make the export target of 8 billion USD set for 2015, which was stated in the sector’s strategy by 2020, reachable.

To ease farmers’ and exporters’ worries about common parasites and diseases that could affect aquatic animal health and export, the aquatic disease prevention and control steering committee was set up and started operation.

The committee will work with localities on the supply of breeds and the planning work in order to go in line with market demands.

Vietnam preps first shipment of longan for US

Anh Duong Sao Co., Ltd, a leading exporter of tropical fresh produce headquartered in HCM City, is preparing its first shipment of longan for the US market, a company representative has revealed.

The company is now double checking to insure all import requirements have been complied with and making last minute preparations for shipment December 8 via air cargo.

Following the first shipment, several other exporters are expected to join suit and ship fresh longan to the US by way of both air and sea routes.

Vietnam shares finance-related experience with Cuba

Deputy Minister of Finance Nguyen Huu Chi and other ministry officials visited Cuba from December 2-7 under a cooperation programme with the Cuban Ministry of Finance and Prices.

The Vietnamese officials paid a courtesy visit to Minister of Finance and Prices Lina Pedraza Rodriguez and had a working session with Deputy Minister Felix Martinez.

They shared experience in state budget and public debt management, government bond issuance, inflation control and market development, which could serve as a reference for Cuba in implementing the updating of its economic model.

Minister Pedraza said the delegation’s visit will greatly contribute to the development of traditional ties between the two nations.

During the visit, the Vietnamese officials handed over 5,000 tonnes of rice as gifts from the Vietnamese Party, State and people to the Cuban government and people.

Cuban Deputy Minister of Domestic Trade Odalis Victoria Escandell described “the gift” as a gesture of solidarity between the two countries and thanked the Vietnamese Party, Government and people for their unswerving support for Cuba’s revolutionary cause.

Vietnam-Japan technological park operational in HCM City

The first phase of the Vie-Pan Techno Park (Vietnam-Japan technological park) was officially inaugurated in Ho Chi Minh City on December 5.

Construction of the park, which covers 13 hectares of land in Hiep Phuoc Industrial Zone, started in February this year with a total investment of US$31 million, with the aim to serve Japanese small- and medium-sized enterprises investing in the city.

The first phase has built more than 14,100 sq.m of workshops and offices for rent on 3 ha at an investment of US$7.6 million.

According to the Board of Management of Export Processing Zones – HCMC (Hepza), eight Japanese enterprises have registered their projects in the Industrial Park. Two of them have been granted licence.

Vice Chairman of HCM City People’s Committee Tat Thanh Cang emphasised the importance of the project, adding that it will create a premise for developing the supporting industry in the city.

Also on the occasion, a Kansai Desk was set up to serve as a bridge between the city’s agencies and the Kinki industrial zone in Japan’s Kansai region.

Vietnam-EU Free Trade Agreement: Challenges and Solutions

A seminar on challenges and solutions in the implementation of Free Trade Agreement (FTA) between Vietnam and the EU was held in Hanoi on December 5.

The event was co-organised by the Party Central Committee's Commission for External Relations, the Ministry of Foreign Affairs, and German Konrad Adenauer Institute.

Participants told the seminar that since Vietnam and the EU established diplomatic ties in November 1990, the two sides have strengthened multifaceted cooperation in all fields including politics, trade, and investment. Their two-way trade turnover has increased 7 folds within 12 years, from US$4.5 billion in 2001 to more than US$33.7 billion in 2013.

Key export items to EU include textiles, leather and footwear, tropical agricultural products, and wooden furniture.

Particularly, Vietnam and the EU are striving to conclude their free trade pact negotiation by early 2015.

However, there remains a number of challenges to the negotiation process such as the final terms to ensure the compatibility of the agreement with domestic law, and issues relating to adjustment scale, dispute settlement and lawsuits after the agreement is signed.

To solve these issues, participants suggested that the two sides should exchange experiences and update information on the negotiation progress.

They should review the legal documents enforce at present and propose amendments, especially in issues relating to economic institutional reform, government procurement, State-owned enterprises, environment, and competition policy.

Australia, Vietnam step up economic and trade ties

Trade cooperation has become a crucial pillar in the relations between Vietnam and Australia, a Vietnamese diplomat stated at a regular meeting of the Australia Vietnam Business Council (AVBC) in Sydney on December 4.

Vietnamese Ambassador to Australia Luong Thanh Nghi hailed the Australian business community for taking part in boosting two-way trade between the two countries with Australia now being Vietnam’s 7th largest exporter and 12th largest importer.

The number of Vietnamese businesses interested in establishing partnerships in Australia is growing, the diplomat told the AVBC members, confirming that Australian entrepreneurs are encouraged to expand their operations in Vietnam.

In the meantime, the two nations are working closely to introduce a new action plan for 2015-2017 with a view to promoting the bilateral economic collaboration in line with Australia’s economic diplomacy policy, Nghi underscored.

He highlighted that Vietnam hails Australia’s new Colombo Plan in which Australian students will be supported to live, study and work in Vietnam from 2015.

For his part, AVBC President Laurence Stranov expressed his pleasure to see the developing partnership between Vietnam and Australia, especially in education.

He stressed that Australia’s groups and enterprises should promote their business in other key sectors in Vietnam to meet economic potential and two-way trade needs.

AVBC is a forum to connect Vietnamese and Australian enterprises to the goal of broadening investments and trade between two countries.

Higher sales of cement, steel expected this year

The local cement and steel sectors are looking to achieve higher-than-expected sales growth this year on improving January-November demand.

The Building Material Department of the Ministry of Construction estimated cement sales would rise 11.5% this year over last year to 68 million tons owning to a strong rise in cement consumption in January-November.

Of the total volume, 49 million tons is sold to the domestic market and 19 million tons exported, according to the department.

The department said the sector has realized the target it set earlier for the entire year in the eleven-month period.

Le Van Toi, head of the department, told the Daily on December 3 that cement consumption in the period had increased by 16% year-on-year to 64.5 million tons.

The total volume included 46.2 million tons sold on the domestic market and 18.3 million tons shipped abroad, up 8% and nearly 40% respectively compared to the same period last year.

Strong sales growth on both home and foreign markets helped many cement firms post profit in the third quarter of this year after suffering losses in previous years.

Ha Tien 1 Cement Joint Stock Company reported profit of VND99 billion in the third quarter compared to losses of VND72 billion a year ago.

VICEM But Son Cement Joint Stock Co. earned net profit of 24.5 billion while Bim Son Cement Joint Stock Co. gained VND16.5 billion in profit in the third quarter. VICEM and Bim Son incurring losses of VND177 billion and 51.6 billion respectively in the final quarter of last year.

Nearly 70 operational cement plants in Vietnam have a combined output capacity of some 70 million tons a year. Five more factories coming online this year will provide the market with seven more million tons of cement per year.

Industry insiders forecast domestic cement sales will grow strongly next year.

Construction steel also saw robust sales growth of 12.3% year-on-year to 4.73 million tons in the January-November period.

Nguyen Van Sua, vice chairman of the Vietnam Steel Association (VSA), told the Daily that the steel sector targeted a consumption rise of 5% this year over last year but the rate could be 10%, backed by stronger demand in recent months.

VSA said 4.95 million tons of steel was consumed last year, falling 9.43% against 2012.

Private firm invests in huge dormitory project

Binh Tan Investment JSC (Bita’s.IC), the developer of Ham Kiem 2 Industrial Park in the south-central province of Binh Thuan, has broken ground for a project to develop housing for 18,000 workers in the park.

The project covering 31.2 hectares in the industrial park (IP) is projected to cost VND4 trillion, or some US$187.5 million, and complete in the end of 2019. Part of the investment will come from secondary investors, said Lai Kim, general director of Bita’s.IC.

Twenty blocks each with 245 apartments will be built for workers, and other 70 luxury villas will be constructed for experts working in the 433-hectare IP.

Kim told the Daily that though Ham Kiem 2 IP was part of a connectivity program between HCMC and Binh Thuan launched in 2008, the IP has still faced many difficulties in attracting investments due to the local economic woes since 2008 and the lack of labor.

Therefore, Kim expected the housing project will lure more workers, thus making it more attractive to investors.

On the same day, Bita’s.IC opened an operating center for the IP, including two buildings with a total floor area of nearly 2,000 square meters. The center will support enterprises’ operations in banking, customs, and post office, among others.

The developer of the IP also signed land lease contracts with five companies operating in the sectors of textile-garment, foods, footwear and pharmaceuticals. These companies have investment projects worth US$400 million in the IP.

According to a master plan for developing IPs until 2020 approved by the Prime Minister, Binh Thuan will develop nine IPs covering more than 3,000 hectares.

Agro-forestry-fisheries exports exceed US$28 billion

Vietnam earned agro-forestry-fisheries exports of US$28.2 billion in the January-November period, rising by 12.1% compared to the same period last year.

Of the total figure, farm produce, seafood and forestry products contributed US$13.19 billion, US$7.22 billion and US$5.88 billion, up 10.5%, 19.3% and 12.9% respectively.

The country exported US$2.66 billion worth of agro-forestry-fisheries last month with strong year-on-year increases in coffee, cashew nut, pepper, seafood, and wooden products.

Rice exports in the January-November period reached 6.03 million tons worth US$2.79 billion, down 2.7% in volume but up 1.9% in value compared to the year-earlier period.

Coffee exports of 1.56 million tons in the period fetched US$3.26 billion, surging by 33.4% in volume and 32.2% in value respectively against the same period last year. Seafood consignment rose by 19.3% year-on-year to US$7.22 billion.

Consumers in city accept bio-fuel

Filling stations in HCMC have sold tens of thousands of bio-gasoline with 5% ethanol, known as E5, in the first few days of putting it on sale on a pilot basis, which is an encouraging sign despite earlier worries that the product may not attract buyers.

On average, each of the filling stations in crowded areas has sold more than 1,000 liters of E5 petrol a day, and several enterprises are adding more stations to the list of those selling the petrol this month.

Bui Xuan Vu, business director of Saigon Fuel Co. (SFC), said the company has sold the bio- petrol at two stations and around 3,000 liters has been consumed each day. SFC has plans to sell E5 petrol at one more station late this month and expects to have 90,000 liters consumed every month at three stations.

Meanwhile, Petrolimex Saigon of Vietnam National Petroleum Group (Petrolimex) has started selling E5 petrol at five stations from November 26. As of November 30, it had sold 26,000 liters of the petrol and on December 1 only, nearly 5,000 liters was consumed at the five stations, according to its business department.

Nguyen Quoc Cuong, director of PetroVietnam Oil Corporation (PV Oil) Saigon, said the company sold more than 10,000 liters of E5 petrol at three stations on December 1.

The total sale of bio-petrol can exceed 60,000 liters if counting the amount sold to wholesalers such as Materials Petroleum Joint Stock Company (COMECO) and Thu Duc Trading & Import Export Joint Stock Company (Timexco), he said.

Wholesalers and dealers earlier predicted that bio-fuel as a brand new product and consumers would be hesitant to use it. Therefore, it is necessary to have promotion activities for the product so that consumers will be aware of the benefit of this environmentally friendly petrol.

Sugar exports to China beaten due to high prices

Sugar enterprises cannot ship their products to China because domestic sugar prices are higher than those in China, according to the Vietnam Sugar and Sugarcane Association (VSSA).

Sugar wholesale prices inclusive of value added tax range between VND11,163 and VND12,385 per kilo in Vietnam, somewhat higher than in China. As Vietnamese firms cannot export their products, the sugar inventories at local factories are rising, especially when the 2014-2015 sugarcane harvest will peak soon.

The glut on the domestic market is further aggravated as many local firms are importing sugar due to low prices of the product on the global market.

An official from the agriculture ministry said that due to the steady fall of global sugar prices, the Ministry of Industry and Trade has granted quotas for local enterprises to import sugar.

Among 77,200 tons imported under the commitment with the World Trade Organization (WTO) is 40,000 tons of raw sugar imported for refining and the rest is white sugar.

Prices of sugar for March 2015 deliveries on London Commodity Exchange stand at US$407 per ton, falling by US$65 per ton compared to a couple of months ago.

Data of VSSA showed that sugar inventories as of November 21 had climbed to nearly 120,000 tons at factories and to 9,100 tons at member enterprises of the association.

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