Dale Carnegie sues trainer for copyright infringement

Dale Carnegie Vietnam, which is also known as Dac Nhan Tam Entrepreneurs School, on Wednesday announced to sue Le Nhu Hieu, who used to be a trainer at the institute, on charges of violating its copyright.

Speaking at a press briefing on Wednesday, Dale Carnegie Vietnam said that Hieu had to make a public apology for his violations.

Hieu had worked at Dale Carnegie Vietnam since 2007 as one of the first 15 trainers of the school. In 2009, some customers reported that Hieu had been using the school’s syllabuses to provide training to outside students, which went against commitments between Dale Carnegie and trainers.

In 2010, Hieu admitted his faults after Dale Carnegie warned him of copyright violations. However, he opened NHR Company in 2011 and copied Dale Carnegie’s syllabuses to launch training courses with tuition at just 50% of that of Dale Carnegie.

Having collected proofs, Dale Carnegie Vietnam brought the case to the HCMC People’s Court on February 13.

Lawyer Nguyen Van Nam, legal representative of Dale Carnegie Vietnam in the lawsuit, said that the petitioner did not ask for compensation but requested Hieu to admit his violations, make a public apology in local media and pledge not to repeat his faults.

Dale Carnegie has created a completed program from training to trainer certification. The program is protected by laws, but risks have still occurred with trainers pirating syllabuses for personal benefits, Nam said.

“We have filed the lawsuit basing on Vietnamese laws. We would take drastic measures to raise awareness on piracy in the country,” he added.

EVN to build US$1.3-billion thermal power plant

Electricity of Vietnam (EVN) expects to start work on Vinh Tan 4 thermal power plant in Binh Thuan Province on March 9, helping cope with power shortage in the South during the upcoming dry season with 7.2 billion kWh added to the national grid each year.

The project will have the capacity of 1,200 MW. The first turbine is estimated to start running in 2017 and the second turbine will operate in 2018, according to a statement released by EVN on Wednesday.

It is part of the Vinh Tan Power Center with the combined capacity of over 5,600 MW.

To meet coal demands of Vinh Tan thermal power plants, EVN said that it would finish construction of Vinh Tan Port within this month to facilitate coal transport. The center is using dust coal 6A from Hon Gai - Cam Pha in Quang Ninh.

In the first two months of 2014, EVN launched many power plant projects into operation such the first turbine of Vinh Tan 2 thermal power plant and the second turbine of Haiphong 2 plant. It also started work on Thai Binh thermal power plant with the capacity of 600 MW.

Concerning power supply, EVN said that the nation consumed 18.3 billion kWh in the two-month period, up 8.6% year-on-year. Power consumption is expected to surge this month and in the upcoming dry season.

Vietcombank and Northern Power Corporation, or EVN NPC, signed a frame credit contract worth VND1.7 trillion and bilateral cooperation agreement on Tuesday.

The credit will be used to fund power projects of EVN NPC in remote areas, border towns and islands. This is part of the Government’s strategy to launch power supplies in poverty-stricken regions, according to the State Bank of Vietnam’s (SBV) website.

Both sides also agreed to enter bilateral cooperation in long term in many sectors. This will be the foundation for the two sides and their member units to realize specific transactions in the coming time.

The cooperation deal is part of the partnership between Vietcombank and Electricity of Vietnam (EVN).

FrieslandCampina Vietnam yet to raise milk prices

FrieslandCampina Vietnam has said it has yet to adjust up prices of 16 of its 47 dairy products though the original schedule for this plan was February 25, citing its unfinished consultation with the country’s price regulator.

The dairy firm is still working with the Price Management Department of the Ministry of Finance over its price hike plan.

Truong Van Toan, corporate affairs, legal and regulatory director at FrieslandCampina Vietnam, has attributed the planned price spikes to 5-48% rises in costs of imported material. Global material milk prices are predicted to edge up further, he noted.

Toan said his company has also seen an average increase of 15% in costs of direct and indirect labor since April last year.

He emphasized his firm never colludes with others to raise milk prices.

The Prime Minister has ordered a probe into the recent hikes of prices of dairy goods for children under six.  Nestle Vietnam, Mead Johnson, Vinamilk and FrieslandCampina Vietnam are among the firms to be inspected over price hikes.

A source from the Ministry of Finance said Nestle Vietnam, Mead Johnson and FrieslandCampina Vietnam have been requested to give explanations about their price adjustment plans. Vinamilk has increased prices after having worked with the HCMC Department of Finance.

Having shown convincing evidence on higher input material costs, Mead Johnson has got approval for its price spike. FrieslandCampina Vietnam and Nestle Vietnam are still working with the authorities over the rationale behind their price increase plans.

Nestle Vietnam began its price hikes on January 31, 12 days ahead of the authorities’ intervention.

In addition to these four leading dairy firms, 3A Nutrition has been put on the inspection list as it is the official distributor of Abbott products, of which some have surged in prices. 3A has just submitted a plan for raising prices of a couple of items.

Following the Prime Minister’s order to look into the milk price increases, the ministries of finance, and industry-trade, and other relevant government agencies met up on Tuesday to work out plans to cope with the issue.

They decided to set up five teams to inspect the five dairy companies in order to gather information and data to see whether they are strictly observing price regulations, and whether they are employing anti-competitive practices.

The Price Management Department of the Ministry of Finance said it might consider measures provided in the Pricing Law to stabilize prices, or setting ceiling prices for certain dairy products.

The Hongkong and Shanghai Banking Corporation (HSBC) has revised down its forecast for Vietnam ’s Consumer Price Index to 6.5 percent from 7.3 percent this year.

Lower oil prices, weaker-than-expected domestic demand and slight increase in rice prices are the major reasons behind HSBC’s revision of this-year inflation forecast.

In its March 2014 report on Vietnam ’s macroeconomic prospects, HSBC also said Vietnamese banks’ bad debt ratio has dropped to 3.6 percent in February 2014 from 4.6 percent in September 2013.

The consumer price index in February showed fell to 4.6 percent, Vietnam’s consumer price index in February rose slightly by 0.55 percent against the previous month.

The bank said the export performance shows that the demand for Vietnamese goods continues to rise but it will be better following the recovery of the exports of agricultural products, especially coffee.

Cassava exports face decline

Viet Nam's exports of cassava declined by 32.4 per cent to 652,000 tonnes, and by 30.6 per cent in value to $206 million, during the first two months of 2014.

In 2013, the country was second only to Thailand in export of the fruit, which are now sold in China, the Republic of Korea, Malaysia, Indonesia, India, Myanmar and Japan.

China was the largest importer of Vietnamese cassava and cassava products, accounting for 85.6 per cent of the country's cassava exports.

In 2014, however, exports of cassava and cassava products plunged by 18.2 per cent to $1.1 billion and volume was down almost 30 per cent to 3.1 million tonnes, according to the General Department of Customs.

Cassava and cassava products had earlier been the nation's seventh largest export staple.

In recent years, cassava has become one of the products that brings high export values to the country.

Trade with Japan increases

Two-way trade between Viet Nam and Japan increased 15.1 per cent against the same period last year, reaching US$4.02 billion during the first two months, stated General Department of Customs.

During the reviewed period, Viet Nam exported $2.2 billion worth of goods to Japan, up 23 per cent, while its imports from Japan were recorded at $1.7 billion, up 6.3 per cent.

Currently, Japan is one of Viet Nam's key trading partners, constituting 10 per cent of the country's total trade turnover. Last year, bilateral trade reached $24.3 billion, a year-on-year increase of 25 per cent.

German firms seek opportunities in Vietnam

German businesses are eager to find Vietnamese partners operating in the production of chemicals and additives.

The observation was made at a Germany-Vietnam business forum held by the Germany Chamber of Industry and Trade in Ho Chi Minh City on March 6.

Business executives discussed collaboration to expand their firms’ production, open representative offices and enlarge German businesses’ market share in Vietnam.

A representative from Touchtronic GmbH, specialising in high technology, said his enterprise wants to seek long-term partners in Vietnam to broaden their import of electronic products from the country. The European firm now provides German customers with all of its electronic equipment shipped from China.

Other German businesses at the forum mostly specialise in the spheres of investment consultancy, education and food processing.

The event is a good opportunity for local companies to establish new their joint ventures and access new sources of investment and useful information on the European market.

By the end of 2013, Germany, Vietnam’s 22 nd largest investor, had more than 200 projects in the country, with a registered capital of over 1.1 billion USD.

HCM City to host int'l livestock expo

The latest machinery, technologies and business solutions for livestock breeding, dairy and aquaculture industries will be displayed at ILDEX Viet Nam 2014 in HCM City from March 19-21.

The 5th International Livestock, Dairy, Meat Processing and Aquaculture Expo has attracted 180 exhibitors from 22 countries and territories, including France, Korea, the Netherlands, China, the UK and Viet Nam.

The biennial event includes conferences and seminars to discuss animal-husbandry and aquaculture issues, including disease prevention and control in dairy farming.

A conference calling for investment in the livestock industry will be organised on the expo's opening day, where representatives from the Ministry of Agriculture and Rural Development will unveil the Government's new investment policies as well as a list of projects calling for investment, according to Tong Xuan Chinh, deputy director general of the Department of Livestock Production.

Organised by VNU Exhibitions Asia Pacific Co., Ltd and Minh Vi Exhibition and Advertisement Services Co, Ltd, the event at the Sai Gon Exhibition and Convention Center in District 7 is expected to attract 15,000 visitors.

Bird flu takes toll on livestock industry

Farmers are helplessly fielding the brunt of the widespread bird flu as it destroys agricultural prices and profits.

Poultry products such as ducks, chickens and eggs are no longer a wise choice of consumers at the dinner table as a direct result of the bird flu and as consumer demand falls, poultry prices likewise take a nosedive, hitting farmers in the pocketbook.

Dong Tam commune in Bac Giang province is a case in point. Over the past few months, the number of chicken raising households has decreased from 765 to 170 at present.

Bustling poultry trading at Ha Vy poultry market, the largest of its kind in Hanoi

Chicken prices plummeted triple to just VND35,000/kg, and egg prices dipped double to merely VND1,200 each.

Low poultry prices and complex bird flu are making farmers extra cautious about investing in chicken flocks and expanding production.

Poultry traders at traditional markets report they are selling much less read-made chickens and ducks than previously.

“Poultry sales have fallen considerably since media agencies first began warning people against bird flu,” said Nguyen Thu Hai, a poultry trader at Nguyen Cong Tru traditional market in Hanoi.

Likewise, restaurants have drastically veered away from poultry in favour of pork, beef and seafood in their menu.

To address the current serious imbalance of supply and demand in the market, the Livestock Department under the Ministry of Agriculture and Rural Development (MARD) has asked localities to enhance communications to ensure consumers clearly understand the disease.

The department emphasises that poultry products which have been verified by veterinarians are safe for consumption if properly cooked.

“Communications should help consumers to easily distinguish between verified poultry products and those of unknown origin,” said Van Dang Ky, head of the epidemiological service under the Animal Health Department.

“If farmers steer away from raising poultry products, both businesses and the livestock industry will face a heavy loss,” he added.

Agricultural experts forecast farmers will not restore poultry flock if the demand continues to decrease for a couple of months. Consequently, markets are in short of food supplies, fuelling their prices and stimulating an illegal import of poultry.

MARD has developed a poultry breeding model in seven northern mountain provinces to be implemented in March, making it easier for farmers to have enough breeds to restore flocks.

It also encourages farmers to apply a biological safety breeding model and disinfect their farms regularly.

The Vietnamese and Finnish governments on March 6 signed an EUR11 million agreement for the second phase of their joint innovation partnership programme (IPP).

The phase, which will run from 2014-2018, has been financed with EUR9.9 million from Finland’s non-refundable aid and EUR1.1 million from the Vietnamese Government.

It aims to enhance the capacity of Vietnam’s information technology system, allowing the country to increase activities in scientific research and technology development, thus contributing to the socio-economic development of Vietnam.

The Vietnam-Finland IPP is considered the focus point of the Nordic country’s current support to Vietnam.

Addressing the signing ceremony, Minister of Science and Technology Nguyen Quan expressed his belief that in its second phase, the programme will continue helping Vietnam to make vital progress in strengthening the connectivity among businesses and scientists from both sides.

In this phase, the programme will focus on completing legal frameworks in science and technology, enhancing creative renovation, supporting and developing products at regional level and building a strong expert team to give advice in technology innovation for businesses, he said.

The first phase of IPP was conducted from 2009-2013 at a cost of more than EUR7 million, mostly from Finnish aid, under the management of the Ministry of Science and Technology and Finland ’s Foreign Ministry.

The programme has covered 60 projects in institutional capacity development, creative innovation and technology renovation support.

Thousands of businesses set up in two months

Approximately 10,869 companies registered to begin trading in the first two months of this year with combined capital of VND62.9 trillion, up 13.1% in number and 28.4% in value against the same period last year.

The Ministry of Planning and Investment (MPI) reported all economic regions across the country experienced increasing numbers of new businesses, with midland and north mountainous provinces having 416 new businesses, up 20.9%, and the central highland region 754 new companies, up 177.2%.

Most economic sectors enjoyed growth in the number of newly established businesses compared to last year, such as electricity, water and gas production and distribution (59.6%), agro-forestry and seafood (41.9%), logistics (28.4%) and information and communications (26.2%).

However, a considerable decline was recorded in such sectors as construction, employment services, tourism, machinery and equipment renting, support industries, science-technology, consultation services, design, and advertisement.

New companies are expected to recruit around 102,419 new workers, accounting for an annual increase of 16.4%.

In addition, 13,124 businesses ceased operation or went bankrupt over the past two months, of which 1,891 were dissolved and 11,233 went bust, an increase of 12.2% from the previous year.

About 3,640 businesses resumed operation, including 1,515 in the south-east region and 1,078 in the Red River Delta.

US firm expands Dong Nai factory

On Semiconductor of the US on March 6 inaugurated its expanded factory in Dong Nai’s Bien Hoa 2 industrial park to raise its output by more than a double.

The company mainly produces hybrid integrated circuits, semiconductors for car, household electrical equipment and other industrial applications.

The second phase of the project cost the US firm an additional US$75 million, enabling it to increase its production capacity of hybrid integrated circuit from 20 million to 50 million units per year.

The company is currently employing some 1,500 employees and plans to recruit more technical workers to feed its future expansion scheme.

Chairman of the Dong Nai provincial People’s Committee Dinh Quoc Thai welcomed On Semiconductor’s expansion plan and said he hopes the firm will help attract more US investors to the locality.

He vowed to create the best possible conditions for the US firm to operate efficiently in the province.

Bank debt settlement on the right track

The Vietnam Asset Management Company (VAMC) has so far purchased approximately VND39 trillion worth of non-performing loans from banks, exceeding its VND30-35 trillion target.

However, what VAMC will do to deal with this huge amount of debt remains a big open question.

Vice Chairman of VAMC Board of Directors Nguyen Quoc Hung says the company’s NPL purchase is progressing but it needs more time to review loans.

“We are in the process of classifying and restructuring loans, together with banks, to help ease businesses difficulties and shore up production,” he says.

VAMC is reviewing loans and considering appropriate interest rates, enabling businesses to get more capital and pay back to the bank, he adds.

Settling the bought debt is no easy task, Hung admits, adding selling debt at a low price is not a good solution.

He goes on to reveal a number of domestic and foreign investors plan to re-purchase VAMC’s bought debt, but there are legal barriers including asset and share ownership that need to be addressed soon.

Dr Le Xuan Nghia, former vice chairman of the National Finance Supervision Committee, reports several foreign investment funds are exploring Vietnam’s debt market and want to purchase loans from VAMC. Yet, incomplete legislation prevents them from accessing such debt.

Currently, the Ministry of Justice is drafting a document allowing VAMC to sell its guaranteed asset to recover debt. The document will create a legal corridor for VAMC to re-sell its assets quickly and conveniently.

Under the draft document, the guaranteed asset will be tackled with the agreement of parties concerned, and if no agreement is reached, bids will be invited for it.

VAMC aims to purchase VND10 trillion worth of NPLs in the first quarter of this year.

Viglacera to sell stakes to foreign investors

Viglacera Corp., Vietnam’s biggest construction materials producer, plans to sell its stakes to strategic foreign investors to help triple its export revenue in the next five years.

Viglacera will sell stakes of 10- 20% each to three foreign strategic investors, Chairman Luyen Cong Minh told Bloomberg.

The State-owned company, which makes glass and tiles and exports to more than 40 countries, expects annual revenue from shipments to reach as much as US$100 million by 2019, from US$30 million.

“Foreign partners will help us increase the quality of products, creating favorable conditions for us to export to other markets as well as supporting domestic consumption,” Minh said.

Viglacera is still in talks over its own sale, part of an equitization process in which it raised about VND200.6 billion (US$9.5 million) in an initial public offering last month.

The shares may be listed on the Hanoi Stock Exchange in the third quarter of 2015. The company, founded in 1974, plans to gradually reduce the state’s holdings to less than 51% from the current 75%.

HCM City’s rich list to triple over next 10 years

Global real estate company Knight Frank reveals the number of ultra-high-net-worth individuals in Vietnam’s HCM City is expected to triple by 2023, from 90 to 246, the largest increase among more than 80 cities worldwide.

The company’s report highlights that the business environment in HCM City is booming and becoming increasingly appealing to foreign investors.

According to the Municipal Department of Planning and Investment, HCM City attracted 477 new foreign direct investment (FDI) projects with a total registered investment capitalisation of US$1.05 billion in 2013, up 76.72% in value compared to the previous year.

To date, the city has housed 4,924 valid FDI projects capitalised at US$33.5 billion. Of which, 3,811 projects are wholly foreign-invested and 1,067 projects are joint-venture.

Singapore pumped the highest FDI capital into HCM City, followed by Malaysia, and the Republic of Korea. The  main areas of investment were real estate, industry, trade, transport, and construction.

The Knight Frank report predicts Singapore will surpass Japan to become the Asian country with the largest number of wealthy people in 2023.

Experts hopeful of FDI inflow

The strong flow of foreign direct investment (FDI) into Viet Nam from multinational groups will continue in the 2015-20 period, economists forecast at an online discussion held recently by online newspaper Bizlive.

Chairman of the Vietnam Association of Foreign Invested Enterprises (VAFIE) Nguyen Mai stated that global economic recovery is on the mend, and successful businesses are scurrying to find lucrative investments.

Mai noted that universally, they consider Vietnam among the top investment destinations in the world, which is largely attributed to its population of nearly 100 million, of which 15 per cent belong to the middle class, and the country's solid economic growth rate.

Korea Trade-Investment Promotion Agency Deputy Director Park Chang Eun remarked that multilateral groups focus on the nation's ability to assimilate modern technologies.

They also consider the nation's political stability and commitment to offer preferential policies on the origin of products as strong-points, he added.

Deputy Director of the Ministry of Planning and Investment's Foreign Investment Agency Nguyen Noi emphasised that drastic measures to improve the business environment will be undertaken. Most notably, measures will be adopted to simplify customs formalities and streamline procedures to establish businesses, he reported.

The Ministry of Planning and Investment is also gathering recommendations on the revised draft Law on Investment, which is expected to create a more transparent investment climate, amending and adding new administrative procedures and addressing the difficulties in gauging the investment performance.

The amended law, which will be submitted to the National Assembly for approval this year, will clarify four issues: defining foreign investors, procedures to set up a business with foreign investors, procedures for capital contributions to buy shares, and essential issues to implement a one-door policy.

According to statistics, many multinational groups from the US, Japan, and Singapore have invested in Viet Nam with a focus on the processing industry, manufacturing, hotel, and real estate.

Experts forecast that the enforcement of the Land Law after July 1, which will allow foreigners and overseas Vietnamese to purchase homes in Viet Nam, will likely increase the flow of foreign capital into the country's real estate sector.

Shoe sector expands Thai footprint

The value of Viet Nam's footwear exports to Thailand has increased sharply in the past four years, jumping from US$6.6 million in 2010 to $25.87 million in 2013.

According to the General Department of Viet Nam Customs, in January 2014 Vietnam shipped $2.01 million worth of footwear to Thailand and since 2012, the country's monthly footwear export value to Thailand has been above $1 million on average.

Thailand has become one of Viet Nam's four largest footwear importers in the Association of Southeast Asian Nations (ASEAN), the department said.

Nguyen Van Khanh, chairman of the Leather and Footwear Association in District 4, HCM City, said that Vietnam will have opportunities to ink more contracts with Thailand in the labour-intensive sector, as the partner country will stop producing its own footwear sometime in the future, reports Vneconomy.

Apart from a shortage of labour, Thailand is facing challenges posed by the unstable baht, the high labour cost and fierce competition from other producers, Khanh said.

He added that many small-and medium-sized footwear producers in Thailand have had to suspend operations and export materials to foreign countries, including Viet Nam. Currently, several Thai businesses are seeking to bring their production lines to other markets with cheaper labour costs, experts said, noting that this could be an opportunity for the Vietnamese footwear industry.

Several months ago, a delegation of 30 Thai businesses operating in the sector visited Viet Nam to seek long-term investment opportunities.

Kanchit Juntanapornchai, chairman of the Association of Thai Footwear Industrial Promotion, said that a number of Thai businesses wished to import Vietnamese footwear to service their domestic and export demands.

He suggested that Viet Nam should take advantage of the uncertainty in the sector in other countries by improving the quality of its own services and products.

According to Diep Thanh Kiet, vice chairman of the Viet Nam Leather and Footwear Association, Thailand boasts of a strong footwear industry as the country not only sells products of well-known brands and importers worldwide, but also establishes distribution networks in foreign countries.

New Year rice exports decline

Viet Nam exported 330,501 tonnes of rice in February, earning US$147.08 million, up 7.57 per cent in volume and 15.3 per cent in value.

According to the Viet Nam Food Association (VFA), the average price of rice rose by $29.89 per tonne, with the FOB (free on board) price standing at $445.03 per tonne.

The results pushed the country's total rice export volume in the first two months of this year to 637, 756 tonnes, worth $274.62 million, it said.

However, the figures represented a drop of 13.53 per cent in volume and $14.2 per tonne in price, added the association.

The VFA also forecast that March's export volume will be between 500,000 tonnes and 550,000 tonnes.

As much as 49 per cent of Viet Nam's total rice exports were shipped to the Philippines, while China and the African countries consumed 28.3 per cent and 7.94 percent of the total respectively.

Meanwhile, the domestic price of rice was stable but rather high in February. It is likely to fall in the coming months, after all rice exports destined for the Philippines are shipped and the harvest peaks, the association predicted.

Experts said that in the first quarter of this year, Viet Nam faced fierce competition from Thailand and might suffer great damage if that country dumps its rice on the world market.

However, cross-border trade with China could help Viet Nam ensure its sales and keep the domestic prices stable, they said.

According to the Department for Cultivation under the Ministry of Agriculture and Rural Development, in the 2013-14 winter-spring crop, the Mekong Delta region has a total rice field area of 1.6 million hectares with an estimated output of nearly 11 million tonnes, with 4.27 million tonnes ready for export.

In March and April, the region is likely to harvest about 7.5 million tonnes of rice, the department said.

According to VFA, price stabilisation measures should be applied to avoid a fall in the domestic prices of rice, as it's been forecast that the global prices will fall sharply when Thailand sells its rice inventory.

Seafood sees strong wave of exports

An unusually strong performance in the first two months and Japan's easing of its seafood import restrictions has raised expectations that Viet Nam's fisheries industry will meet its annual export target with relative ease.

According to the Ministry of Agriculture and Rural Development, seafood exports in January and February increased 23.5 per cent year-on-year to reach US$919 million, including $335 million in February.

This has been a welcome surprise for the industry because seafood exports are usually slow in the first few months of the year, especially after the Tet holiday, the ministry said.

Exports to the US, still the largest market for Vietnamese seafood, increased 89 per cent year-on-year, accounting for 26.67 per cent of the total fisheries export value.

The value of seafood exports to Japan increased by 17.85 per cent, to South Korea by 29.27 per cent and to Australia by 31.45 per cent, while it fell by 37.8 per cent to China and by 7 per cent to Thailand.

The Viet Nam Association of Seafood Exporters and Producers (VASEP) Association said it expects the good start at the beginning of the year to help the industry achieve its annual exports target of between $6.8 and 6.9 billion –$3 billion from shrimp, $1.6 billion from tra fish and $2.2 billion from other seafood products.

The ministry said shrimp would continue to be a major export item this year because Japan, a major market, has eased its strict standards for Vietnamese seafood imports.

Tra fish exports are also expected to improve over last year because some traditional buyers will reopen their markets, VASEP officials said.

For instance, Ukraine, a traditional buyer, has given licences to 10 Vietnamese seafood processors to export their tra fish products.

The agriculture ministry has said that as a key export item for the nation, it would pay even more attention this year to improving product quality as well as food hygiene and safety.

They would also work on building a trademark for Vietnamese seafood, that would enable local firms to expand their export markets, ministry officials said.

Tra fish farms get ASC certification

Three farms breeding tra fish for export in the Mekong Delta province of Vinh Long have become the first in the country to receive certificates from the Aquaculture Stewardship Council (ASC), opening doors to more markets.

Covering a total area of 36.7 hectares, the farms are run by the Co Chien, Nam Vang and Nam Song Hau seafood companies in Vung Liem and Tra On districts.

They have been supported by a Government programme to build safe tra fish farms that meeting the Global GAP (Good Agriculture Practices)and ASC standards.

Founded in 2010 by the World Wide Fund for Nature and the Netherlands' Sustainable Trade Initiative, the ASC is an international organisation that works with seafood producers, processors, retail and food service companies, scientists, conservation groups and the public to promote the best socially and environmentally-friendly seafood choices.

Its certification programme recognises and rewards responsible aquaculture.

ASC certified enterprises will be assisted to transform their production practices and apply advanced technology in fish farming, thus minimising the use of chemicals in production.

More importantly, the enterprises will be put under the supervision of the surrounding community, raising their responsibility towards their workers and society as a whole.

Currently, Vinh Long has 239 fish farms that are operated by 58 firms and 192 households.

Outlook optimistic for 2014

Vietnamese businesses have high expectations that the economy will flourish in 2014, reported the Vietnam Business Forum - a weekly magazine of the Vietnam Chamber of Commerce and Industry (VCCI).

Further, the magazine wrote that Vietnamese businesses are prepared to begin a new stage of development.

As an official in charge of the Vietnam Business Annual Report, Pham Thi Thu Hang, General Secretary of VCCI, is not surprised at the results of the survey, conducted in late 2013. Following 7 annual reports, it appears businesses are more optimistic about the nation's business situation and report being increasingly optimistic, said Hang.

While 2013 saw a record number of bankruptcies or shut-downs of enterprises, 2014 is expected to see a record number of revived businesses. This prediction is based upon expectations that sales this year will see a great improvement, compared to 2013, and average selling prices will tend to rise.

Hang also displayed a more optimistic view: many businesses are confident that their production capacities will be much higher than in 2013. Many businesses, following a period of "hibernation", have begun to accelerate restructuring and have more confidence in the use of their resources. They expect that the number of orders will increase, compared with 2013. Also, many businesses are confident with their plans to recruit more staff in 2014.

Nguyen Thi Nguyet Huong, Chairwoman of the Vietnam Investment Development Group (VID), a firm specialising in the development of industrial parks and export processing zones, is confident that 2014 will see more businesses expanding their activities, so her group plans to enlarge industrial parks.

Businesses have high expectations on changes in the labour market, as this is the best time of year for businesses to recruit those who can immediately meet job requirements without being retrained, even in key positions. The second reason is the opening of markets, tax incentives and the improved ability to raise capital. The third reason is due to improved infrastructure and support programmes.

Referring to the strategy of the socio-economic development period 2011 - 2020, the majority of businesses, some 64.6 percent, are aware that the increase in domestic value, added value and competitiveness of products are important objectives in their strategies.

So far, Vietnamese enterprises have not focused on research and development (R&D), with only 32.5 percent of businesses choosing this method. Mentioning this problem, economist Pham Chi Lan shared that she had recently conducted a survey among businesses in the southern region, and she felt there exists new movement within enterprises. Most of these businesses recommended that the government promote industrial development to support businesses in raising the proportion of value added products.

Ministry maintains petrol retail prices

The Ministry of Finance yesterday asked domestic fuel wholesalers to maintain the current retail prices of petrol, though they have incurred losses.

The ministry's calculations reveal that based on the global petrol prices, the retail prices of petroleum products are currently lower than the base price by VND173-VND519 per litre.

Companies have been asked to sell gasoline, kerosene, and diesel on a non-profit basis.

The move was aimed at stabilising the price of fuel, thus ensuring benefits for businesses and customers.

The ministry has also allowed wholesalers to use the money from the price stabilisation fund for compensating their losses. Specifically, the subsidy on petrol was increased to VND300 per litre, diesel was VND170 per litre, and kerosene was VND110 per litre.

The decision came into effect yesterday.

Petroleum violations punished

The Ministry of Industry and Trade's Market Management Department has punished violators in nine out of the 50 investigated cases related to the petroleum industry so far this year.

The total money collected from the violators added VND113 million to the State budget.

The ministry claimed that the imports of petrol and liquefied petroleum gas (LPG) in the first two months of this year saw a surge, both in terms of quantity and value, over the same period last year.

Petrol imports were estimated at 1.34 million tonnes amounting to US$1.26 billion, 37 per cent and 31 per cent year-on-year increases in terms of quantity and value respectively. LPG imports were estimated at 71,000 tonnes with total value of $77 million.

State budget draws $6.2b in Jan-Feb

State budget revenue in the first two months of this year was estimated at over VND129.8 trillion (US$6.18 billion), according to the Ministry of Finance.

The sum accounted for 16.6 per cent of the whole year's budget estimates and represented a year-on-year rise of 12.9 per cent.

Of the amount, VND93 trillion ($4.4 billion) came from domestic taxes, equivalent to 17.3 per cent of the year's estimates. The outcome was attributed to bustling economic activities in the last months of 2013 and the first months of 2014.

The 11.6 per cent increase in total retail sales and consumption service revenues greatly contributed to the two-month budget collection, plus VND1.8 trillion ($85.7 million) from dividends of State capital at State-owned companies and VND2.1 trillion from small-and medium-sized enterprises' corporate income tax.

VND32 trillion ($1.5 billion) was collected from import-export activities, or 14.3 per cent of the estimates.

The ministry also revealed an estimated budget spend of VND150 trillion ($7.1 billion) during the period, accounting for 15 per cent of the forecast and up 4.3 per cent year-on-year.

To cover a budget overspend of VND20.2 trillion, the management agencies issued more than VND51 trillion ($2.4 billion) worth of Government bonds, fulfilling 17.5 per cent of the yearly plan.

An unusually strong performance in the first two months and Japan's easing of its seafood import restrictions has raised expectations that Vietnam's fisheries industry will meet its annual export target with relative ease.

According to the Ministry of Agriculture and Rural Development, seafood exports in January and February increased 23.5 percent year-on-year to reach 919 million USD, including 335 million USD in February.

This has been a welcome surprise for the industry because seafood exports are usually slow in the first few months of the year, especially after the Tet holiday, the ministry said.

Exports to the US, still the largest market for Vietnamese seafood, increased 89 percent year-on-year, accounting for 26.67 percent of the total fisheries export value.

The value of seafood exports to Japan increased by 17.85 percent, to the Republic of Korea by 29.27 percent and to Australia by 31.45 percent, while it fell by 37.8 percent to China and by 7 percent to Thailand.

The Vietnam Association of Seafood Exporters and Producers (VASEP) Association said it expects the good start at the beginning of the year to help the industry achieve its annual exports target of between 6.8 and 6.9 billion USD –3 billion USD from shrimp, 1.6 billion USD from tra fish and 2.2 billion USD from other seafood products.

The ministry said shrimp would continue to be a major export item this year because Japan, a major market, has eased its strict standards for Vietnamese seafood imports.

Tra fish exports are also expected to improve over last year because some traditional buyers will reopen their markets, VASEP officials said.

For instance, Ukraine, a traditional buyer, has given licences to 10 Vietnamese seafood processors to export their tra fish products.

The agriculture ministry has said that as a key export item for the nation, it would pay even more attention this year to improving product quality as well as food hygiene and safety.

They would also work on building a trademark for Vietnamese seafood, that would enable local firms to expand their export markets, ministry officials said.

Investors value equal importance of job, soft skills

Foreign investors have given equal importance to professional and soft skills while hunting for employees, according to a survey that was released at a workshop in Hanoi on March 6.

The findings were jointly conducted by the Institute of Labour Science and Social Affairs and the US’s Manpower group, as part of a memorandum of understanding inked between the Ministry of Labour, Invalids and Social Affairs and the US group.

Scanning though 100 foreign businesses active in consumer goods, electronics and automobile assembling in six cities and provinces nationwide, the survey found most of Vietnamese workers remain weak in soft skills such as team-working, communication and adaptability to new environment.

It also unveiled a worrying trend that a number of foreign direct investment enterprises tend to hire qualified workers from their competitors instead of investing in training new recruits, which could spark an unhealthy pay race.

Since Vietnam integrated globally, foreign-invested firms have given an impetus to its growth. With advanced technologies and human resources management, they have been growing against the global economic turmoil. A mere 5 percent of them incurred losses.

Although the majority of the surveyed enterprises have invested heavily in technologies and more sophisticated production processes, they said they prefer capitalising on low-cost labour – this is forecast to hamper their performance in the future.

At the workshop, delegates voiced the need to launch effective links between universities, colleges, vocational training centres and FDI companies to make a perfect match for their training and recruitment programmes.

According to them, on-the-spot training should be carried out in the firms.-

SSC highlights tasks to boost market trading activity

Vietnam stock market witnessed dull trading activity last year, this has led to the closure or suspension of many securities companies or fund management companies.

Chaiman of the State Securities Commision (SSC) Vu Bang was quoted by Vietnam Business Forum as saying that hardship of securities trading activities caused three securities dissolved, three others stopped operating, two others suspended their businesses. Bang also noted that five securities companies had been seriously controlled while 10 others decided to terminate their businesses.

By the end of January 2014, 24 securities companies and 6 fund management companies were restructured, withdrawing from Vietnam securities market by dissolution, operation suspension, being controlled, seriously supervised or gradually gotten out of securities trading activities, reported the Vietnam Business Forum- a weekly magazine of the Vietnam Chamber of Commerce and Industry (VCCI).

After one year of securities market restructuring, economic turmoil reduced the number of securities market companies about 20 percent, from 103 securities companies to 89 securities companies operating in securities trading field. The number of fund management companies also reduced from 47 to 41.

By the end of January 2014, ten open-end funds joined in the securities market, which were certified of establishment and giving offers. By now, the number of public investment funds accounted for 50 percent of the total existing funds.

In order to establish a sustainable securities market, Chairman Vu Bang said that Vietnam needs to accelerate equitisation process for supplying qualified products for securities market, as well as setting up innovative operation in State enterprises operations.

“ We always have cooperation programmes in implementing State’s policy of equitisation, especially stock exchanges realise their auction in securities market. The State Securities Commission together with Corporate Finance Department (Ministry of Finance) are ready to plan up the State equitisation programme to implement enterprises’ auction in securities market”, Vu Bang said.

The State Securities Commission will also coordinate closely with relevant authorities to handle with procedures related to equitisation, depository, listing after equitisation and operations in the securities market.

Vu Bang assessed that the securities market will improve the demand in the following time by expanding room, as well as providing policies to tackle with difficulties and support the market development, aiming to create motivation for stocks bid of state owned companies.

The Chairman of State Securities Commission added that the issue of equitising state owned companies is partly related to the securities market because it is a public offering. The public offering currently faces with some obstacles according to Law on Securities like offering under book value, unprofitable companies not offering securities publicly.

The State Securities Commission will also coordinate with authorities to issue policy and regulation suitable with equitisation so that public offering will not be limited related to offering under book value or unprofitable companies not offering securities publicly. Only then there is a solution to tackle difficulties, promote equitisation process, better implement direction of the Government.

The State Securities Commission identifies that 2014 will be a major year to equitise state owned companies, especially equitisation with listing or trading in the UpCom. It will also propose a mechanism to cooperate with the State Bank in restructuring credit institutions, equitising commercial banks.

Besides, the State Securities Commission will complete regulations, trading mechanism in UpCom system, supporting the restructuring of credit institutions and state owned companies; making UpCom a system to announce prices, provide information on trading and issuance in compliance with requirement of a full access to information instead of depending on issuance mechanism operating at Stock Exchanges currently.-

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