Int’l client conference to promote Binh Phuoc’s cashew

The southern province of Binh Phuoc will organise an international client conference for the local cashew industry from May 14-16. 

At a press conference in Ho Chi Minh City on May 5, the organizing board said the event is expected to draw representatives from consulates general of countries importing Binh Phuoc’s cashew, as well as domestic and foreign associations and enterprises engaging in cashew trade with the province.

Huynh Thi Hang, Vice Chairwoman of Binh Phuoc People’s Committee and head of the organizing board, said that cashew farming and processing is an important economic sector of Binh Phuoc in recent year, which is employing about 40,000 labourers.

The province has about 143,000 hectares of cashew area, accounting for 40 percent of the country’s total, along with 270 processing factories and 1,600 cashew trading household businesses.

Last year, the locality earned 500 million USD from cashew nut export, making up nearly one third of the province’s total export revenue.

Binh Phuoc’s cashew nut has been rated as having the world’s best quality by experts and international customers.

Hang stressed that the province hopes that the conference will create a chance for cashew nut farmers, processors and traders to meet and seek partnership with foreign peers.

She added that the event is also expected to connect domestic and foreign enterprises, thus foster their collaboration in the future.

Meanwhile, Nguyen Anh Hoang, head of the provincial Department of Industry and Trade, said that the conference will focus on a wide range of issues, including the planning and development of cashew nut material area, the green cultivation of cashew under VietGap standards. Connectivity in producing and processing cashew nut, thus improving export value, and policies for developing the cashew nut industry are also on the agenda.

Fact-finding tours of some local cashew farm and processing facilities will be arranged for participants, he added.

Vietnamese lenders shut down night-time ATM services for better security

Several banks in Vietnam have decided to stop providing their ATM services at night-time in order to prevent criminals from stealing money from their customers’ accounts.

vietnamese lenders shut down night-time atm services for better security hinh 0 The policy has been uploaded for public view on the official websites of these lenders.

Although the decision was aimed at ensuring security for customers’ assets, some clients have complained that it had caused them inconvenience.

Binh, a resident of Binh Thanh District, Ho Chi Minh City, who is using services of the Vietnam Bank for Agriculture and Rural Development (Agribank), said he often withdraws money at an ATM booth on No Trang Long Street, which is near his house.

“But the security guard always locks up the booth after 10:00 pm. I though these ATM booths would open around the clock,” Binh continued.

An Agribank representative told Tuoi Tre (Youth) newspaper that the State Bank of Vietnam requires all ATM services to be provided for customers 24/7.

However, the central bank also allows banks to cease the services of ATM booths in certain areas during specific periods, as long as their opening times are listed at the facilities and on the banks’ websites, the representative elaborated.

For example, those ATM stalls set up at buildings and shopping malls will be shut down pursuant to the closing times of these venues.

Some booths that do not fall into this category have their own closing times, 9:00 pm or 10:00 pm, according to Tuoi Tre reporters’ observation.

Only cash machines installed at bank branches are open 24/7, with security guards working around the clock.

According to Nguyen Hoang Minh, deputy director of the State Bank of Vietnam’s Ho Chi Minh City branch, the change is meant to ensure security and combat criminals.

With thieves carrying out increasingly sophisticated activities, police have advised lenders to prepare certain measures to cope with the situation, Minh said. 

The central bank will check if local banks follow the correct protocol established for this adjustment, he added.

Tran Quang Thoai, an expert in this field, assessed that several methods to deal with card fraud have caused nuisances for depositors.

To seek understanding from customers, these adjustments should be informed properly, Thoai said.

Samsung slump in sales drags on Vietnam economy

Close to one fifth of the total exports of Vietnam consists of mobile phones manufactured by Samsung, the Republic of Korea electronics giant, from its factories located in the northern part of the country.

Last year, a series of fires in the Samsung Galaxy Note 7 devices slammed the brakes on production in the plants located in the provinces of Bac Ninh and Thai Nguyen from which 30% of the company’s global phone production takes place.

The drop of Samsung’s sales was a significant factor in causing the gross domestic product of Vietnam to slow to 5.1% on-year for the first quarter, the lowest in three years.

In addition, the fall in Samsung’s sales was a key factor in the country’s trade balance sliding deeper into the red and the industrial sector growth rate dipping to 3.85%, a six-year low.

Slowdowns in oil and coal development were two other major areas where growth faltered as well.

US fruit growers look for pitaya market to take off in 2017

Exotic in looks and name, pitaya or strawberry pears, more commonly known as dragon fruit in Vietnam, are grown on trellising structures like those found in grape vineyards in the US and Mexico.

Farmers in the US state of Texas say the fruit is a domesticated version of a wild cactus that originated in Mexico and Central America and was transported to Asia by Catholic missionaries, where it acquired the dragon fruit label.

In the US only three states grow dragon fruit commercially: California (primarily Southern California), Florida, and Hawaii.

The fruit is primarily grown for the fresh market and is often sold through specialty stores and farmers’ markets and often sells at prices between US$14 and US$16 per kilo with organic prices reaching higher than US$50 per kilo wholesale and US$100 retail.

In addition, it has good potential to be processed into many products, thus adding value, including energy and fruit bars, ice cream, jelly, marmalade and preserves, juice, pastries, pulp, and yogurt.

The juice of the red varieties can also be used as a natural food colorant and dye, and, when unopened, the flower bud can be cooked and eaten as a vegetable, say US farmers.

It has been most common for dragon fruit to be sold in the agritourism segment in the US, where a commercial farm or ranch produces the fruit for the enjoyment and education of visitors and selling the fruit generates supplemental income.

But the marketplace is changing rapidly with US dragon fruit farmers actively educating local customers by performing store demos throughout the country in the large supermarket chains such as Krogers’ produce departments.

As a result of our marketing efforts to inform Texans of the health benefits of pitaya, Krogers in Houston is currently taking everything we can produce says one farmer and we don’t see that changing anytime soon.

At local markets and in large stores, the farmer says he enjoys going one-on-one with consumers.  I get the biggest kick from interacting with customers, he says and find their feedback motivating.

You’ve got to make your markets in the US. It’s an art. We beat the imported, tasteless fruit from Asian markets hands down in a taste test, across the US. Cultivating a good rapport with customers is the key to success in the US market, says the farmer, adding his farm is next looking to tap into the juice bar segment.

In 2016, the farmer says his farm harvested nearly seven metric ton of dragon fruit and aims to triple that amount in 2017 as more plants are maturing. He and his farm managers are also aiming to produce 11.33 kilograms of the tropical fruit per cactus plant.

Since dragon fruit is a newly emerging fruit crop, there is currently not a lot of export, import, or per capita consumption data available reported through the US Department of Agriculture’s Economic Research Service or Foreign Agricultural Service.

However, it is known that US farmers cannot meet the total demand for dragon fruit and it is imported from many other countries around the globe including but not limited to Nicaragua; Colombia; Ecuador; Vietnam; Thailand; Malaysia; and Israel.

Currently, Vietnam is in no position to compete in the US market, says Mai Kieu, director of the province of Binh Thuan Department of Agriculture and Rural Development.

This results from several reasons, the first being that farmers by and large fail to follow VietGAP safe food standards. Much of the problem results from the illiteracy rate of farmers who fail to appreciate the importance of producing certifiably safe food.

As a result, more than 70% of the dragon fruit of the province, the largest growing area in Vietnam, can only be sold in China, which has no food safety requirements to speak of, and most is sold in the informal market at extremely low prices or left to rot in the fields.

Local Phan Thiet packing company Binh Loan says that in the low season, it receives on average five to six tons of dragon fruit per day from neighbouring farms, while in the high season from May through to August, it receives between 20 to 30 tons per day depending on the harvest.

All their produce is destined for the fruit bowls of kitchens in China. The company pays farmers between US$.88-US$.97 (VND20,000-VND22,000) per kilo. In some fruit shops in Ho Chi Minh City, dragon fruit retails for around US$1.45 (VND33,000) per kilo.

Vietnam gov’t beefs up efforts to ‘rescue’ pig farmers

Vietnam’s agriculture ministry and its trade counterpart should clarify the causes behind falling pork prices and identify effective solutions, Prime Minister Nguyen Xuan Phuc underlined at a government meeting on Thursday.

Pig farmers in southern Vietnam have been plagued by excessive supply against a decrease in demand and prices attributed to drastic reduction of imports from China, the country’s main live pig buyer.

Similar situations have happened with Vietnamese produce such as watermelon, onion, and banana, “so what will come next?” PM Phuc questioned at the meeting.

The premier asked relevant ministries and agencies to review their regulation management procedures and seek solutions that protect local farmers.

“Finding solutions to ‘rescue’ pig farmers was high on the agenda of the government meeting,” Minister and Chairman of the Government Office Mai Tien Dung confirmed at a press conference later the same day.

Pork prices have slid to a mere VND15,000 to VND18,000 per kg in the last few days, but local consumers are still purchasing the meat at high prices, between VND80,000 and VND100,000 per kg, at supermarkets. (US$1 = VND22,700)

“PM Phuc has directed relevant agencies to determine the causes and adopt measures that prevent similar occurrences,” the Government Office chairman told reporters.

Deputy Minister of Agriculture Ha Cong Tuan then reassured that different ministries, agencies, businesses, and supermarkets have taken actions in support of the ‘rescue pig farmers’ campaign, resulting in an increase in the price of live pork prices by more than VND5,000 per kg.

Supermarkets have also cut pork prices by 10-20% compared to ten days ago, Tuan added.

As for long-term solutions, Tuan said his ministry will focus on ensuring a balance in supply and demand, improving food hygiene and safety, arranging supply chains, and exploring export markets beyond China.

The banking sector will also offer a helping hand to local pig farmers, as the State Bank of Vietnam has requested commercial banks to offer interest waivers and reductions to stimulate manufacturing, according to Deputy Governor Dao Minh Tu.

The central bank recently agreed to reschedule debt payments worth VND 364.7 billion (US$15.85 million), following field trips to localities with heavy farming activity, Tu added.

Aside from the efforts of the agriculture ministry and the central bank, the government has also demanded that relevant agencies closely oversee the temporary import and re-export of farm produce in line with Vietnam’s regulations and the accepted terms of various trade agreements Vietnam partakes in, especially those of the World Trade Organization.

“Relevant agencies should also review shortcomings in state management, especially in planning, pricing information systems, and the long-term market outlook,” Dung, the Government Office chairman, concluded, underlining the need to reduce production prices for local pig farms.

Jammed Saigon set to launch air ambulance service

Ho Chi Minh City is set to launch air ambulances to handle emergencies in Vietnam's largest city where traffic jams are the norm.

The Vietnam Helicopter Corporation has started drawing up a feasibility plan to use a helipad on top of a 36-story building on Nguyen Hue Street in the city's downtown.

The building, one of the 10 tallest in Vietnam, is the city's only private premises to be granted permission by the defense ministry to operate air ambulances.

Conventional ambulances are often unable to respond quickly to accidents in Ho Chi Minh City, where congestion is an everyday problem.

Vietnam imposes cash fines of VND500,000-1.2 million (US$22-53) on drivers who refuse to make way for emergency vehicles, but the law is rarely enforced. Many argue that during traffic jams, there's simply no space to give way to ambulances.

Various solutions have been suggested such as using ambulance motorbikes or having traffic police accompany ambulances to clear congestion.

FLC Faros foresees major rise in 2017 post-tax profit     

Construction giant FLC Faros has set a revenue target of VND4.9 trillion (US$217.78 million) and a post-tax profit of VND580 billion for 2017.

The figures increased by 38 per cent and 25 per cent, respectively, in comparison to 2016’s numbers, the management board revealed at its annual shareholder meeting on Friday.

In the first three months of the year, FLC Faros gained a net revenue of VND855 billion, an increase of 37 per cent from a year ago, and the post-tax profit for parent company shareholders reached nearly VND91 billion, a rise of 9 per cent.

In 2017, FLC Faros will complete second stage of the FLC Sam Son Beach Golf and Resort project.

In 2016, the company earned VND3.54 trillion in total revenue and VND470 billion in post-tax profit. A large part of earnings for FLC Faros came from construction activities and no longer depended on the firm’s financial business.

The company’s total assets in 2016 almost doubled to VND8.2 trillion from VND4.52 trillion, including a nearly five-fold increase in short-term assets to VND5.73 trillion, which mainly focused on short-term financial investments.

FLC Faros plans to issue 4.3 million shares to make a 10 per cent dividend payment for its 2016 performance. The share issuance is scheduled in the second quarter of 2017 to provide sufficient capital for the company to make investment in new projects.

According to the firm’s management board, the share issuance will be more beneficial for current shareholders than paying dividend in cash, as the company’s share price is much higher than the share’s face value.

FLC Faros debuted its 430 million shares on the HCM Stock Exchange on September 1, 2016 under code ROS at the opening price of VND8,400 per share. ROS was up 0.3 per cent to finish Friday at VND161,500 per share.

Trinh Van Quyet, chairman of the property developer FLC Group, has been named the new chairman of FLC Faros Construction, after a vote by the management board following the company’s annual shareholder meeting.

At the annual shareholder meeting of FLC Faros, Quyet was voted by a majority of shareholders to be included in FLC Faros management board.

His new position has created some speculations over a merger between FLC Group and FLC Faros Construction. Both FLC and FLC Faros have said the deal is under consideration, but the groups must make sure shareholders of the two companies are benefited. 

Mekong Capital inks fourth investment with jewelry retailer      

Mekong Capital on Friday announced that its Mekong Enterprise Fund III Ltd (MEF III) has committed to invest US$7.6 million in Ben Thanh Jewelry Joint Stock Company (BTJ).

This is the fourth investment deal inked for MEF III since its launch in May 2015.

The new investment is expected to help Ben Thanh Jewelry launch a new chain of fine jewelry retail in Viet Nam under the name PRECITA.

“BTJ used to be a wholly state-owned company specialising in manufacturing, processing, importing and exporting jewelry. Following its equitisation in 2003, it has achieved great progress and is now choosing MEF III as a strategic investor because of the added value that the fund and its management company, Mekong Capital, will bring to our company,” Shipra Jain, CEO of Ben Thanh Jewelry, said in a statement.

Founded in 1987, Ben Thanh Jewelry, a member of Ben Thanh Group, is one of the oldest gold & gem stone retailers in Viet Nam. In 2016, the company recruited global professional managers to join its management team to develop a new chain of fine jewelry retail named PRECITA.

PRECITA, which focuses on latest designs imported from large jewelry markets and Western trends along with exclusive local designs, aims to redefine industry standards of value to customers and product integrity.

Launched in May 2015, MEF III is a private equity fund with $112.5 million in committed capital. It focuses on investments in Vietnamese consumer-driven businesses such as retail, restaurants, consumer products, and consumer services, with targets of $6-15 million on each investment (both minority and buy-out deals).

In March, Mekong Capital said it would make four new investments in the first half of 2017, targeting unlisted firms in the retail, education and transport sectors. 

Construction Ministry approves smaller apartments

     

The Ministry of Construction (MoC) has allowed the Dat Lanh Real Estate Company to temporarily apply the minimum areas of 25sq.m for its commercial apartments. However, the apartments should still ensure enough functional space for living.

The company’s deputy director on Friday said that the ministry had answered their proposal of constructing commercial apartments of 20-30sq.m in area each.

The ministry said the Law on Housing 2005 stipulates that apartments must have a minimum area of 45sq.m.

However, many localities also sent documents to the ministry proposing that they be allowed to invest in commercial apartments with areas of 30-40sq.m each. In reality, the demand for such apartments among low-and-middle income earners in big cities and industrial parks was significant, it added.

The revised Law on Housing 2014 also removed the minimum area regulation for apartments.

The MoC said it planned to issue the National Technical Regulations on Apartments in the near future. As a result, the ministry will allow commercial apartments to temporarily apply the minimum area of 25sq.m each while ensuring suitable design and construction of a closed apartment.

Duc said many property firms believed that commercial apartments must have areas of at least 45sq.m each while the ministry had not issued an official position on the issue.

“The answer from the ministry would promote the development of the cheap housing segment to meet the demand of low and middle income people in the big cities,” he said.

Earlier, the company submitted a proposal to the ministry, HCM City People’s Committee and the municipal Department of Construction to build apartments with areas of 20-30sq.m and prices of between VND200-300 million (US$8,700-13,000) in the city.

It said the city should give support to real estate firms that invest in such apartments in terms of technical infrastructure, increasing construction density and reducing the time for completing administrative procedures.

The deputy director said he asked the ministry to build pilot apartments of 30-40sq.m 8 years ago. The company built 780 such apartments in HCM City’s District 12. All of the commercial apartments with small areas sold out quickly.

The apartments came into operation 3 years ago, and still ensure suitable living conditions for residents. This has proven that the small apartments have not affected urban planning. Good management could further ensure the quality of such apartments.

In addition, more than 7,000 apartments of 30sq.m each in the southern province of Binh Duong have been constructed to settle many workers and poor people. The provinces of Dong Nai and Long An have also prepared some smaller apartments. 

Sustaining Asian countries’ growth a top concern

How can Asian countries continue an impressive economic growth to move from a low-income to middle-income position, a seminar held by the Asian Development Bank heard on Friday.

According to the Asian Development Outlook 2017 produced by the Asian Development Bank, as of 1991, more than 90 per cent of Asians lived in low-income economies, but now the vast majority of the region’s population lived in middle-income countries, presenting a remarkable turnaround.

The region’s strong growth seen in recent years has been motivating optimism about its ability to reach high income. However, the transition from middle-income to high income will not be driven by the same factors that lifted economies out of low income, the report highlighted.

ADB’s Governor for Indonesia-cum-Indonesian Minister of Finance Sri Mulyani Indrawati said that Asia had adopted good policies for the past 50 years, "but it does not mean that it will be a shock-free or crisis-free region".

She said that most of the Asian countries were pursuing the model of export-oriented and investment-led growth. They were getting rich by their trade openness and competitive advantages as they were using labour-intensive manufacturing while paying low wages.

However, to successfully move up to a higher ladder of development, the countries would need to improve their productivity by investing more in human capital and education.

“It is not only about increasing your budget spending in education, but also about how you design the education system to allow an improvement in skills,” Indrawati said.

ADB chief economist Yasuyuki Sawada, who is also the Director General of ADB’s Economic Research and Regional Cooperation Department, told a Viet Nam News reporter that the key determinant for Asian countries to avoid being trapped in the middle-income category would be to foster productivity to sustain economic growth.

According to Sawada there are three productivity-enhancing factors, including innovation and technological progress, human capital quality, and advanced infrastructure.

As an economy matures, productivity growth has to come increasingly from innovation. Therefore, it is necessary for middle-income economies to shift their attention to areas that foster innovation and create positive productivity spill-over.

He suggested that middle-income countries should learn lessons from some Latin America countries such as Brazil which is considered to have fallen into the middle-income trap, as well as learn from success stories like South Korea of which the road to high-income spanned only 23 years.

Besides productivity, Indrawati added, “governance and quality of an institution is very important to ensure that countries avoid the middle-income trap.”

Change in governance and institution has not matched up with the expectations of the public sector, thus the trust in the public sector in government is at the lowest level.

The role of governments is very important. “It can become a source of a problem but also be a real facilitator for the countries to move up,” Indrawati said.

To gain public trust, “from my own experience, you have to show you really mean it. You have to clean staff with being seen as corrupt, create an open business process and increase accountability by asking outside stakeholders to watch, criticise and supervise you.”

ADB’s Alternate Governor for India Shaktikanta Das agreed with Indrawati saying that Asian countries’ governance and institution have to be strengthened and structural reform measures need to be undertaken.

Das, who is Secretary at the Department of Economic Affairs in the Indian Ministry of Finance, gave an example that India has reduced human interface in all tax authorities by using online procedures and simplifying rules.

He said that Asian governments should focus on three other areas in the years to come to remain where they are, to grow further, and to lift living conditions of people.

First, they need to continue anti-poverty programmes. Second, they should focus on infrastructure enhancement. Thirdly, they need to reorient public expenditure with a focus on areas providing good growth and creating more employments because governments in the region cannot borrow excessively and increase their debt to GDP ratio.

He also urged each Asian country not to retreat into a shell of protectionism because opening trade over the last two decades really helped global growth and Asian development.

ADB’s Governor for Norway Tone Skogen noted that the private sector is an instrument driving development so, “We need to make sure of a conducive business environment with long-term and predictable framework for the private sector to invest and create jobs.”

The seminar themed "Lessons from 50 years of Asian Development and Implications for the Future" was held on the sideline of the ADB's 50th Annual Meeting which run from May 4 to 7.

VN strives to attract French investment     

Viet Nam wants to attract investment in hi-tech and environmentally-friendly fields, which are strengths of French investors, Le Cong Thanh, Counsellor in charge of investment in France told a roundtable discussing Vietnamese investments and exports.

During the event, organised by the enterprise club of the Association of Enterprises in the Ile-de-France region (MEDEF Ile-de-France) on Thursday, representatives of Vietnamese trade and investment promotion agencies in France discussed the strengths of Viet Nam’s investment climate, including its stable political system, positive and sustainable growth prospects, competitive labour costs and high domestic demand.

Several French enterprises also shared their experience in doing business in Viet Nam.

Michel Jonqueres, Chairman of the International Committee under MEDEF Ile-de-France, said that three remained untapped potentials for the two countries to accelerate bilateral economic and investment relations. France’s exports to Viet Nam were valued at 1.7 billion euros (US$ 1.89 billion) last year, accounting for only 1 per cent of Viet Nam’s imports, he said, suggesting French businesses should expand operations in the Southeast Asian nation.

Currently, 300 French businesses are operating in Viet Nam, creating about 26,000 local jobs. 

State Bank to aid pig farmers

     

The State Bank of Vietnam (SBV) issued an official document asking credit institutions to support borrowers in the livestock industry, especially pig farmers in need of credit extension as market demand struggles to find equilibrium.

The document, titled 3091/NHNN-TD in late April, urged credit organisations, on the basis of current legislation and of debtors’ financial situations, to apply the appropriate aid. This might include extending the payment period and lessening or eliminating interest rates.

Commercial banks and credit institutions are to preserve the current debts while allowing for more loans in order to support borrowers with any feasible business plans to continue breeding livestock.

Financial institutions across the country are to strictly comply to the SBV’s request and submit quarterly reports to the SBV on their efficiency in aiding farmers through the current market slump. Any difficulty encountered during implementation must be reported immediately.

The SBV’s intention is to help farmers resume production in the foreseeable future.

Right after the document was issued, two banks responded to the SBV: the Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank) and the other the Kien Long Commercial Joint Stock Bank (Kienlongbank).

The LienVietPostBank’s Board of Directors will give a preferential package of VND500 billion (US$22.3 million) to pig farmers or frozen pork processors with an annual interest rate of less than two per cent compared to their current average in a one year period.

Kienlongbank also will consider decreasing about 30 per cent of the annual interest rate to those currently receiving the bank’s credit funding in the pig farming industry. The estimated time of implementation is three months or 90 days from May 10, 2017. 

During this time, Kienlongbank will continue to support their borrowers in extending the prompt period and decreasing interest payments.

The two banks also asked their employees and other personnel to support farmers through purchasing their products at reasonable prices.

The current drop in domestic pork prices is due to various factors. The main reason was that farmers did not have a reasonable production scale, leading to oversupply and market saturation.

VN, Turkey agree to boost trade     

Trade ties between Viet Nam and Turkey, despite rapid expansion in recent years, remain far below potential, according to the Viet Nam Chamber of Commerce and Industry.

Speaking at a Turkey-Viet Nam Business Forum in HCM City yesterday, Nguyen The Hung, deputy director general of VCCI HCM City, said the trade grew from US$1 billion in 2012 to $1.5 billion last year, with Viet Nam enjoying a surplus.

But the rapid growth notwithstanding, the trade remains below potential, he said.

Viet Nam exports mainly mobile phones and accessories, fibre and yarn, computers, electronic products and accessories, fabric, and rubber, and imports machinery and equipment, pharmaceuticals, plastic products, and chemicals.

Hung hoped that the forum, which was attended by executives from 16 Turkish companies and more than 50 of their Vietnamese counterparts, would help the two sides explore business opportunities.

Mustafa Cikrikcioglu, deputy chairman of the Turkish Exporters Assembly, said Viet Nam’s overall exports had more than quadrupled in the last 10 years, with electrical machinery and equipment, shoes, and machinery and mechanical appliances being the top three products.

It imported mechanical devices, boilers and accessories, machinery and mechanical appliances, and plastic products, he said.

Turkey exports these very products to more than 200 countries, according to the businessman.

“However, we see that Turkey’s exports of these products to Viet Nam are below the level they should be. We hope that from this day on we will form stronger bonds and take our trade relations to a higher level.”

Furthermore, through Viet Nam, Turkish exporters could reach the ASEAN market, he said.

Since they are situated in different parts of the world, the two countries specialise in different products, he said.

“We believe that by improving our relations and sharing our experiences, we will increase our trade.

“We are here not only to increase Turkey’s exports, but also to find ways to improve Viet Nam’s exports to Turkey. Our primarily goal is to establish a strong bond with Viet Nam.”

The VCCI and the Turkey Exporters Assembly signed an agreement to help enterprises on both sides step up exchanges and co-operation.

Industrial land up despite TPP uncertainty

     

Industrial land in Viet Nam has continued expanding since the beginning of this year, despite uncertainty over the future of the Trans-Pacific Partnership (TPP) after the withdrawal of US support for the deal.

According to property service firm Cushman & Wakefield Vietnam, more than 4,700 hectares of industrial land has been developed since the beginning of 2017, up by 7 per cent over the same period last year.

Alex Crane, director of the property service firm, was quoted by Dau Tu (Investment) newspaper as saying that Viet Nam remained an attractive destination for investment. “With or without TPP, the industrial property segment will still be on an uptrend,” he said.

Crane cited statistics, noting that Viet Nam attracted record foreign direct investment (FDI), at US$7.7 billion in the first quarter of this year, nearly 85 per cent of which was poured into production.

Coupled with a significant number of new firms and improved business confidence, this would have a positive impact on the industrial land market, he said.

He noted that Viet Nam had four other free trade agreements (FTAs) under negotiation, which are expected to boost the investment flow into Viet Nam, and the industrial property segment would certainly see benefits resulting from this.

However, administrative reforms must be hastened in order to facilitate investment, together with improving the infrastructure system for industrial zones.

According to Nguyen Thanh Ha, chairman of SbLaw, developers should build industrial zones with proper infrastructure systems and lease them at reasonable prices, while the Government should pay attention to developing the parts-supplying industry and improving transport connectivity.

As of the end of 2016, there were 324 industrial zones throughout the country with total land area of 91,800 hectares, as well as 16 economic zones and two high-tech zones.

Vinatex’s profit after tax down in Q1     

Viet Nam National Textile and Garment Group (Vinatex) recorded after-tax profit of VND126.3 billion (US$5.6 million) in the first quarter of this year, down 11.62 per cent year-on-year.

Vinatex said the lower profit was because the group’s northern and southern textile and garment corporations had put some companies into operation since June last year, such as Nam Dinh Textile Company, Phu Cuong Fibre Factory, Can Tho Garment Factory, Bac Lieu Garment Factory and Quang Binh Garment Factory.

Until the end of Q1, these factories were incurring losses, affecting the business results of the whole group.

In 2016, Vinatex achieved over VND600 billion of after-tax profit, growing up 13 per cent compared to the previous year.

This year, the group targeted a rise of 12 per cent in export revenue, 15 per cent in industrial production and six per cent in profits. 

Vietnamese firms urge further cuts to customs red tape

'It's not just customs procedures; unofficial fees to complete administrative procedures quickly and conveniently are rife across all sectors.'

Vietnamese companies still have to pay unofficial fees to get through customs procedures, and many are calling for the procedures to be simplified, the Vietnam Chamber of Commerce and Industry (VCCI) said recently.

Customs has made significant reforms to facilitate import-export activities over the past years and is at the forefront of applying information technology to administrative procedures, said Hoang Quang Phong, vice president of VCCI.

A VCCI survey on customs procedures found that 31% of businesses had to pay under-the-table payments to clear customs procedures, up from 28% in 2016, while nearly a third of respondents said they were treated unfairly if they refused to pay the fee.

The survey, the fourth conducted so far by the VCCI in cooperation with the General Department of Customs, sent questionnaires to 3,500 import-export enterprises nationwide, and more than 1,000 responded.

“It's not just customs procedures; unofficial fees to complete administrative procedures quickly and conveniently are rife across all sectors,” said Dau Anh Tuan, head of the VCCI's legal department. 

A representative of a business association in Hai Phong City called for amendments to customs policies to be better communicated to businesses that are struggling to keep up with the changes. 

As many as 93% of firms viewed changes to customs policies and regulations as positive over the past five years, and nearly all respondents expressed satisfaction, saying they could easily find the information they needed on the customs website, according to the report.

However, most firms also said specialized checks were complicated and sometimes overlapping, while eight in 10 firms said the waiting time was too long and put a burden on their firms.

In response, Kim Long Bien, a senior manager at the General Department of Customs, said the customs agency is on track to reducing clearance times and the number of specialized inspections. It is also simplifying administrative procedures while digitizing import-export procedures, customs clearance and tax payments for businesses.

"We will take concrete action to make changes happen," Bien said, adding that Vietnam aims to break into the top four countries in Southeast Asia when it comes to customs services.

HCM City to host Top Thai Brands fair

Around 300 firms will present Thailand’s internationally recognised brands to Vietnamese consumers at Top Thai Brands 2017, a trade fair to be organised in HCM City from May 11 to 14.

The fair, jointly held by the Thai commerce ministry’s department of international trade promotion and the Thai Consulate-General in HCM City, aims to boost the connection between enterprises in both countries, facilitating their search for agents, distributors and franchisees.

Through the fair, both nations hope to enhance trade and investment cooperation, while providing a platform for businesses to widen their networks and further develop strategic partnerships.

Top Thai Brands 2017 offers opportunities for industries such as food and beverages, home appliances, automobile and motor spare parts, cosmetics and healthcare, as well as service sectors such as education, tourism and business franchising.

Vietnam’s exports see positive signs

The Ministry of Industry and Trade forecasts that Vietnam’s exports will grow stronger in the second quarter, thanks to business reforms and the implementation of free trade agreements.

Vietnam earned US$45 billion from exports in the first quarter, up 15% from last year. 

This encouraging result is attributed to a surge in the price of key export items including raw materials, crude oil, farm produce, seafood, and processed products. 

Exports revenues from major markets like China, Japan, Russia and ASEAN also increased significantly.

“Businesses should apply advanced technologies and update their management methods. We have signed 17 free trade agreements and are negotiating several others,” said Tran Thanh Hai, Deputy Director of the Export-Import Department of the Ministry of Industry and Trade.

The Vietnam-Eurasia Economic Union Free Trade Agreement which took effect last October offers an opportunity for Vietnam’s exports to reach a market of 183 million people. 

“We are trying to consolidate existing export markets while seeking new ones. Other important missions include reducing tariffs and remove non-tariff barriers to boost exports,” said Nguyen Khanh Ngoc, Deputy Director of the Europe Market Department.   

Under the Vietnam-Eurasia Economic Union Free Trade Agreement, both sides will reduce or exempt tariffs on nearly 90% of items and open their markets for investment and services. 

The Eurasia Economic Union, which consists of Russia, Armenia, Kyrgyzstan, Belarus, and Kazakhstan, is expected to be a lucrative market for Vietnamese apparel, seafood, agricultural products, and footwear.  

LienVietPostBank signs $50m loan     

Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank) has signed a US$50 million syndicated loan agreement with Taiwanese banks to supplement mid-and-long term foreign resources for local firms.

The loan was led by Taiwanese Cathay United Bank, along with seven lenders, including Hua Nan Commercial Bank, E.Sun Commercial Bank, Chang Hwa Commercial Bank, First Commercial Bank, Taichung Commercial Bank, Sunny Bank and Jih Sun International Bank. The Bank for Foreign Trade of Viet Nam (Vietcombank) provided the guarantee for the loan.

The three-year term loan will assist in increasing LienVietPostBank’s restructuring of its capital mobilisation, while improving its position in financial markets, both inside and outside the country.

“The loan will help LienVietPostBank to deeply integrate into the international financial market,” said Nguyen Anh Van, the bank’s deputy general director.

By the end of last year, the bank’s total assets reached more than VND141 trillion, its capital mobilization was VND116 trillion, while its total debt balance was VND83 trillion.

The bank’s pre-tax profit last year saw a breakthrough to reach VND1.35 trillion, thus increasing its dividend payment from 8 to 10 per cent.

In the first quarter of the year, its pre-tax profit reached some VND470 billion.

SMEs’ responsibility for environment management highlighted

A workshop on pollution control and corporate social responsibility of Vietnam’s small- and medium-sized enterprises (SMEs) took place in Hanoi on April 28.

The event was co-held by the Research Institute for SMEs (RISME) to discuss challenges and opportunities of the country’s SMEs in complying with environment protection laws and map out policy- and technology-related measures to help them improve capacity of pollution control and environment protection.

Addressing the workshop, Pham The Hung from the RISME said the SMEs today are demanding more access to environment management information and training courses on environment management to learn about legal environment requirements.

Aside from training courses, associations and research institutes should design other kinds of support for the enterprises in the field, he said.

Hung cited the fact that the enterprises have struggled to ensure the environmental laws are enforced due to a lack of knowledge on the laws and human resources capable of environment management in line with limited funding and outdated technology.

Furthermore, little support from the government and unstable legal regulations in the matter have posed difficulties for the enterprises to act within the law, putting them at risk of being fined or suspended for breach of environment regulations, he added.

Meanwhile, Director of the Centre for Environment and Community Research (CECR) pointed out that many firms have not paid enough attention or neglect training courses on pollution control technology and solutions, even though most of which were free. They appeared to prefer those on taxation and customs procedures.

Surveys indicates that big brands or foreign-invested firms, like Vinamilk, Dow and Pepsico, have complied with the laws better and put many efforts in energy saving, waste recycling and wastewater treatment.

The training courses on corporate social responsibility and legal environment management need to provide the SMEs with clear benefits, for example, environment-related benefits that help them enhance power and performance efficiency, save cost and bring better opportunities.

Wind power plant built in Ninh Thuan

Singapore – based renewables developer The Blue Circle and its Vietnamese partner TSV began construction of Dam Nai wind power plant on April 28 in Tan Hai commune, Ninh Hai district, the central province of Ninh Thuan.

The 40-MW wind park is built on an area of 9.6 hectares with a total investment of 80 million USD.

The project consists of two phases, of which the first phase is expected to finish by October 2017 with three turbines operating. A total of 16 turbines will be fully operational in the second phase which lasts to October 2018.

Turbines used for the wind farm will be supplied by Spain’s Gamesa. With a capacity of 2,625 MW and a diameter of 114 metres, it is the largest wind turbine installed in Vietnam so far.

Investors have been asked to mobilise all resources to implement the project promptly and ensure work and environment safety.

The provincial People’s Committee has directed local authorities to create favourable conditions to support investors during the project construction and their business in the localities. 

Vietnam has great potential for wind power, estimated at about 10,000 MW, according to research by the German International Cooperation Agency (GIZ).

The country needs to switch to renewable energy such as wind and solar power  as it has cancelled its first two nuclear power projects and has started implementing commitments on reducing greenhouse gas emissions, experts have said.

Only four wind power projects are operating in the country with a total capacity of 160 MW, which is far below the huge potential that exists in the country.

The Government has released its National Electricity Development Plan for 2011-2020 with a strategic priority on renewable energy, with wind power capacity targeted at 800 MW by 2020 and 6,000 MW by 2030.

Vietnam records trade expansion in four months

Vietnam’s trade revenue is estimated at 125.41 billion USD in the first four months of 2017, a year-on-year increase of 20.1 percent, said the General Department of Vietnam Customs.

It consists of 61.34 billion USD from exports, up 15.4 percent, and 64.07 billion USD from imports, up 24.9 percent from a year earlier.

Key export commodities include telephones and components, textile and garment, footwear, and transport vehicles and spare parts.

In April, overseas shipments of telephones and components were about 3.6 billion USD, rising by 16.4 percent from the previous month. That added up to 11.37 billion USD in total exports of these items in four months, up 0.3 percent year on year.

Although this month’s exports of textile and garment dropped 12 percent from March to 1.85 billion USD, it still posted an annual rise of 9.1 percent to 7.47 billion USD between January and April.

A monthly decline, 3.8 percent, was also recorded in footwear exports which stood at 1.05 billion USD in April. However, total exports still went up 9.6 percent on the yearly basis to 4.17 billion USD.

Meanwhile, main import items were machinery, equipment, tools and spare parts, computers, electronic products and components, fabric, steel, plastics, and garment and footwear materials.

In April, the import turnover of machinery, equipment, tools and spare parts fell 0.2 percent month on month to 3.25 billion USD, which totalled 11.32 billion USD in four months – up 38.9 percent compared to the same period last year.

About 2.85 billion USD was spent to import computers, electronic products and components in April, representing a 4.6-percent monthly decrease. It is estimated at 10.45 billion USD in the four-month period, hiking 24.7 percent year on year.

Some 1.6 million tonnes of steel worth 945 million USD were imported this month, respectively increasing 8.7 percent and 8.2 percent from March. The import volume has approximated 5.8 million tonnes, down 5.9 percent year on year, with turnover of 3.3 billion USD, up 24.7 percent, since the beginning of 2017.

Vietnam experienced trade deficit of 800 million USD in April and nearly 2.74 billion USD in fourth months, Vietnam Customs said.

HCM City hosts France-Việt Nam Job Fair

The annual France-Việt Nam Job Fair 2017, which has attracted 33 Vietnamese and French companies, will be held on May 6 at the Novotel Saigon Centre in HCM City.

The fair is expected to offer around 200 jobs in various fields, including commerce, distribution, accounting, communication, education, IT, tourism and construction.

The fair has been a leading platform for participating organisations to promote their businesses in the local labour market, to procure potential employees as per requirement in skill areas, and to evaluate their human resources and career development strategies towards the Vietnamese public.

The event, organised by the French Chamber of Commerce and Industry in Việt Nam in cooperation with the French Embassy in Việt Nam, aims to create a conduit between the businesses that need employees and workforce looking for career opportunities.

It is expected to attract 500 to 600 attendees, including experienced professionals, new graduates and students in their final year at university.

VinaPhone launches 4G in Vũng Tàu

Việt Nam’s mobile network operator VinaPhone on Thursday launched 4G services in the southern port city of Vũng Tàu.

On the occasion, VNPT Bà Rịa-Vũng Tàu set up the booths and organised activities to provide visitors a taste of the 4G experiences. In addition, 4G SIM upgrades were offered free to the operator’s customers. 

VinaPhone 4G’s average internet access speed ranges from 50 to 80mb/s, which is seven to 10 times faster than the current 3G network speed. At this speed, users can engage in  interactive experiences, and post, download, video stream, and play games with a lag speed that’s one to three times lower than 3G.

VinaPhone is offering a variety of 4G packages to customers, the cheapest being around VNĐ79,000 (US$3.5) per month.

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