Premier security and fire safety exhibition opens

The latest equipment and technologies used in the security and fire safety industries will be on display at Secutech Viet Nam 2013, which opens in HCM City tomorrow.

The sixth edition of the country's largest security, safety and fire prevention and fighting exhibition has attracted 110 exhibitors from 13 countries and territories, including the US, UK, India, Germany, the Netherlands, South Korea, Italy, Japan and Singapore.

There will be more than 200 booths showcasing the latest surveillance systems, alarms, access-control systems, intercoms, biometrics, fire safety and prevention products and rescue equipment, and industrial safety products.

Also on display will be integrated solutions for buildings, factories, retail outlets, banks, hotels, transportation and other businesses.

Secutech Viet Nam 2013, held at the Saigon Exhibition and Conventional Centre in District 7 until August 10, will also feature seminars on digital surveillance and fire and safety.

The development of residential urban areas, malls, industrial parks, hotels, banks in Viet Nam has increased demand for security, including fire safety and modern rescue equipment.

Co-organised by the Viet Nam Advertisement and Fair Exhibition Joint Stock Company Vietfair and the Taiwan-based Messe Frankfurt New Era Business Media Ltd, the exhibition expects to welcome around 5,000 visitors.

JoYou Group makes foray into Vietnamese capital

China's leading sanitary ware and accessories manufacturer JoYou Group has opened a showroom and representative office in Ha Noi.

JoYou products will be distributed exclusively by Thanh Trung Production Services Trading Company Limited in Viet Nam.

Founded in 1979, JoYou Group has been named among the top 500 most powerful businesses in Asia and sells its products in 20 countries around the world, including Germany, the UK, the US, Canada and Southeast Asia.-

Vietnam calls for more aid from World Bank

The Ministry of Finance (MoF) has asked the World Bank (WB) to assist to Vietnam in macroeconomic management, policy development, business reform, and public debt management.

At the August 6 meeting, MoF leaders proposed a host of effective and practical measures to enhance cooperation with the WB in the future.

They asked the bank to maintain official development assistance (ODA) loans for Vietnam to promote poverty reduction, ensure social welfare and upgrade infrastructure.

They wished to get more financial support from the WB to complete the framework for the implementation of business restructuring projects.

Participants in the meeting focused on issues related to the shift of International Development Association (IDA) loans and WB funding for the Poorest to the International Bank for Reconstruction and Development (IBRD) loans, which aims to reduce poverty and promote sustainable growth in middle-income countries and creditworthy poorer countries.

Seafood exports increase slightly in first 7 months

Vietnam’s revenue from seafood exports in July is estimated at US$592 million, bringing the total figure in the first seven months of 2013 to US$3.41 billion, a year-on-year increase of 0.7 percent.

The US remains Vietnam’s largest seafood importer, accounting for 20.5 percent of the total, up 6 percent from the same period last year to over US$600 million.

Exports to China, ASEAN members and Brazil also grew significantly, by 27.7 percent, 11.8 percent and 76.5 percent, respectively.

Meanwhile, there was a decline in seafood exports to the EU (down 7.8 percent), Japan (down 1.3 percent) and the Republic of Korea (down 19.5 percent), due to the impacts of economic recession as well as technical and tax barriers in these markets.

Experts forecast that seafood exports will pick up in the coming months when the Christmas and New Year season is drawing near.

According to the Directorate of Fisheries, Vietnam’s total seafood production in the seven months rose 2.5 percent from the same period last year to 3.3 million tonnes.

VDB to raise charter capital under new development strategy

The Viet Nam Development Bank (VDB) will raise its charter capital to VND20 trillion (US$952 million) by 2015 and VND30 trillion ($1.42 billion) by 2020 under a new development strategy approved by the Prime Minister.

The additional charter capital is intended to raise the equity of State's total investments and export credits to 10 per cent.

The VDB has three capital sources to raise charter capital, including accumulated capital; business arrangement and development support funds; and the State's annual development expenditure.

The finance ministry will determine the charter capital increase and will identify relevant sources of funds, using the VDB's annual financial statements.

PVEP welcomes first oil stream from project in Malaysia

PetroVietnam Exploration and Production Corporation (PVEP) has welcomed the first flow of crude oil from West Desaru 1 well it is exploring under a joint project in Malaysia.

According to the Vietnam National Oil and Gas Group (PetroVietnam), the average output from West Desaru oil field, which belongs to Block PM304 offshore the Malaysia peninsula, is estimated at 2,000 barrels/day.

When fully operational, the field, one of PVEP’s three overseas oil stream projects, is expected to produce 20,000 barrels/day. It holds a 15 percent stake in this project.

The corporation has been investing in 17 overseas projects, and is expected to see the same happening in Peru and Algeria soon.

Business incubation at universities promoted

Vietnam’s scientists and businesses actively discussed and shared their business incubation experiences with those from high-tech countries around the world at an international conference held in Hanoi on August 6.

Vietnam needs to reinforce the incubation of science and technology businesses to develop the sector into a driving force to help accelerate the country’s industrialisation and modernisation, said Deputy Minister of Science and Technology Tran Van Tung with a focus on the level of science and technology business incubation at universities and research institutes.

The conference is a good opportunity for participants to exchange information and create future links between science and technology business incubation centres, Tung added.

Participating lecturers from Israel, Malaysia, Australia, the Hanoi-based Vietnam National University (VNU) and several enterprises dwelled on technology commercialisation at universities and business incubation activities.

PetroVietnam revenue falls 4 percent

Total revenue of the Vietnam Oil and Gas Group (PetroVietnam) in the first seven months of the year is estimated to fall 4 percent year-on-year due to an oil price decrease of around US$8.8 per barrel.

This information was reported by PetroVietnam’s Deputy General Director Nguyen Vu Truong Son during an online meeting of the Ministry of Industry and Trade on August 5.

However, PetroVietnam contributed US$4.58 billion to the State budget in the January-July period, up 1 percent year-on-year, Son said.

The group reported that petroleum output in July is estimated at 520,700 tonnes, up 25.5 percent over the same period last year, bringing total production for the January-July period to over 3.8 million tonnes, up 28.1 percent year-on-year.

PetroVietnam also extracted 9.7 million tonnes of crude oil in the first seven months of this year, a 1.3 percent year-on-year rise.

Gas exploitation in the period totaled 60.1 billion cubic metres, up 9.7 percent against the same period in 2012.

Footwear, handbag production jumps on strong Japanese orders

The leather and footwear sector expects to surpass its target of US$9.7 billion in turnover this year, as many Japanese importers have shifted their orders from China to Vietnam.

Turnover is expected to increase even more if the Trans-Pacific Partnership (TPP) and the Free Trade Agreement (FTA) between Vietnam and the EU are signed.

Many importers, including those from Japan, have shifted orders from China to Vietnam. Exporters already have had orders through the first quarter of next year, according to the Vietnam Leather and Footwear Association.

Luu Van Thanh, director of Hoang Kim Handbag Ltd Co in Ho Chi Minh City’s Binh Tan District, said the company has been meeting with visiting Japanese groups nearly every day. He said he has never seen this many Japanese businesses coming to Vietnam.

Thanh's company, which employs 100 people, exports all of its products, to Switzerland, Germany, France, and Japan.

Many importers viewed Vietnamese standards for handbag production as higher than those of other ASEAN countries such as Indonesia, Cambodia and Myanmar, he said.

Truong Thi Thuy Lien, director of Lien Phat Footwear Ltd Co in Binh Duong province, said that after two months of surveying the market and sending samples, her company has received its first orders from a Japanese partner.

The company's export orders are full until the end of the year, according to Lien.

The leather and footwear association said the TPP and FTA would cut tariffs to zero percent, which would make Vietnamese exports more competitive with China and India.

In the first six months of the year, the footwear sector earned more than US$3.99 billion in turnover, an increase of nearly 14 percent compared to the same period last year.

The US accounts for 32 percent of export turnover (US$1.27 billion).

Bag and suitcase products also saw an export growth rate of 22 percent in the first six months, with a turnover of US$ 911 million.

Exports to the US accounted for 44 percent of total export turnover US$391 million, an increase of nearly 30 percent over the same period last year.

Quang Ngai grants licences for 13 new projects

The central province of Quang Ngai has approved licences for 13 projects this year, including three foreign-invested projects worth US$16.5 million.

It has granted business licences for 285 projects, including 260 from domestic investors and 25 foreign-invested projects worth $5.2 billion in total, says director of the Provincial Investment Promotion Centre Tran Ba Nam.

Among the projects, JK Paper manufacturing company from India has registered to invest $150 million for a plant in Dung Quat Economic Zone (EZ), he said.

"Businesses have actually disbursed $3.6 billion in projects, 70 per cent of total registered capital, while 13 of 25 foreign-invested projects have put into operation," Nam said.

"Dung Quat is seen as one of the top five attractive coastal economic zones in Viet Nam with 114 projects, including an oil refinery that produces 6.5 million tonnes per year, a deep sea port which allows access to 100,000 deadweight tonnage (DWT) ships. These are massive advantages in luring investors," he said.

The province has offered investors a 10 per cent income tax rate with tax exemptions in the first year, he added.

Firms favour HCM City Stock Exchange

Listed companies are showing a trend to favour the HCM City Stock Exchange over that of Ha Noi.

The sizes of the two stock exchanges are significantly different. As of July 31, market capitalisation of the HCM City Stock Exchange reached VND817.3 trillion (US$38.5 billion) compared to the Ha Noi Stock Exchange's VND94.55 trillion ($4.4 billion).

The more stringency in regulations on capital and business results of the southern exchange made listed companies on the bourse more attractive to investors than those on the Ha Noi bourse.

Firms which wish to list shares in HCM City must have a minimum capital of VND120 billion ($5.6 million) while it is VND30 billion ($1.4 million) in Ha Noi.

Both exchanges require a return on equity ratio of at least 5 per cent, but the HCM City bourse also requires making a profit during the last two years, while the Ha Noi bourse does not.

In the first six months of this year, foreign investors were net buyers in HCM City by VND3.5 trillion ($165 million), quadrupling the figure in Ha Noi.

The VN-Index has so far gained 11.76 per cent while the HNX-Index rose only 5.56 per cent. That is why companies favour the HCM City Stock Exchange to list their shares.

Pha Lai Thermal Power (PPC) rose from VND36,000 ($1.60) to VND65,400 during eight months trading on the Ha Noi Stock Exchange in 2010 and 2011. When it moved to HCM City just two weeks later, the reference price was VND105,000 ($4.90).

Although PPC price is currently only VND23,200, it has become one of the 30 largest stocks tracked by the VN30 and selected into the FTSE Vietnam ETF index. Retailer Pan Pacific Corporation (PAN) also had a higher reference price in HCM City than the closing price in Ha Noi. On the first trading day in HCM City, PAN rose 20 per cent to the ceiling price of VND19,900 ($0.90). After three years switching place, PAN is currently traded at VND31,000 ($1.40).

Construction Investment Corporation 3-2 (C32) and Bien Hoa Packaging Company (SVI) were the same stories.

Finance firm floats

Financial firm FLC (FLC) will list shares on the HCM City Stock Exchange next Tuesday. Initially, the company announced the reference price for the listing would be VND10,000. However, it then immediately adjusted to VND5,500, its price previously on the Ha Noi Stock Exchange.

FLC chief executive Doan Van Phong said Saigon Securities Inc had assessed its book value at VND15,000 per share. "However, due to unstable stock market conditions, the VND10,000 reference price is no longer appropriate," he said.

Tax evasion on rental houses on the rise

Tax evasion on rental houses has become more common and complicated in Ha Noi, especially in Tay Ho District where the business has developed rapidly.

The Tax Department in Tay Ho District reported the area was booming with many houses available for rent and a predominantly foreign clientele.

In Quang An precinct alone, nearly 800 families are renting out their houses. This type of business is mostly concentrated in two new urban areas - the Nam Thang Long-Ciputra and along the West Lake side of Quang An precinct.

By the end of last year, the total number of families leasing their houses in this area rose to 2,300, accounting for nearly 50 per cent of the individual household businesses and 80 per cent of tax payments from individual household businesses in the district.

An official from the Tay Ho District Tax Department who wanted to remain anonymous said over the past few years, the Department had taken several measures to strengthen tax administration on house rentals in the area.

However, tax collection from this kind of business was often tricky as many families tried to avoid tax by not registering for payment. Some families had deliberately made two contracts on a rental house and showed the Tax Department the one with an artificially low rent in order to pay lower tax, he said.

This practice has reportedly been carried out in collusion between house owners and tenants, he said.

To avoid paying taxes, some families have collected rental fee though banks without reporting information about tenants in an attempt to avoid scrutiny from tax authorities.

To deal with the problem, the Tay Ho District Tax Department has worked with local police to implement effective preventative measures and regularly exchanges information about tax policy with local police so they can disseminate details and encourage those who have their house up for lease to voluntarily pay tax.

The Tax Department has also provided local police with information about families leasing their houses to help police review temporary residences in the local area

 Domestic petrol prices yet to fall

A man buys petrol at a station in Ha Noi. Vietnamese authorities seem unsure if and when petrol rises will fall in line with world oil prices. — VNA/VNS Photo Hoang Hung

HA NOI (VNS)— Vietnamese authorities seem unsure if and when petrol rises will fall in line with world prices for oil, but the chances are that nothing will happen until the end of September when a new decree governing the petrol industry is issued.

At present, any. adjustments to petrol prices must comply with Decree 84, said Nguyen Xuan Chien, Deputy Director of the Domestic Market Department under the Ministry of Industry and Trade.

Although world petrol prices have been falling since the end of July, any decrease in domestic petrol prices must be based on the calculations of the 30-day average world prices, Chien said.

If the 30-average falls, wholesale enterprises must lower the domestic retail petrol price, Chien said.

Chien added that there would be a completely new decree to replace Decree 84 which was revealed many limitations in regulating petrol business, instead of just amending it.

The manufacturing and processing industry's inventory index continues to fall thanks to higher domestic consumption, said Deputy Minister of Industry and Trade Ho Thi Kim Thoa.

The ministry's figures indicated that July's index ended 8.8 per cent above last July's, but decreased by 0.9 per cent against June.

Sales have increased in commodities such as urea fertiliser (up 41.3 per cent), motorcycles (19 per cent), cement (14.2 per cent), footwear (11.9 per cent) and garments (8.6 per cent).

Sectors with highest drop in inventories included electronic components (down 75.2 per cent), communication devices (down 76.9 per cent), automobile manufacturing (down 38.1 per cent), cement production (down 33.7 per cent), woven production (down 32.3 per cent) and footwear (down 19.2 per cent).

However, some production sectors posted inventory indexes with high growths, such as sugar (up 49.6 per cent), beer (up 33.3 per cent) and batteries (up 37.7 per cent).

In July, the index of industrial production (IIP) surged by 5.2 per cent and the consumption index for the processing and manufacturing sector also jumped 8.3 per cent year-on-year. The manufacturing and processing industry's inventory index continues to fall thanks to higher domestic consumption, said Deputy Minister of Industry and Trade Ho Thi Kim Thoa.

The ministry's figures indicated that July's index ended 8.8 per cent above last July's, but decreased by 0.9 per cent against June.

Sales have increased in commodities such as urea fertiliser (up 41.3 per cent), motorcycles (19 per cent), cement (14.2 per cent), footwear (11.9 per cent) and garments (8.6 per cent).

Sectors with highest drop in inventories included electronic components (down 75.2 per cent), communication devices (down 76.9 per cent), automobile manufacturing (down 38.1 per cent), cement production (down 33.7 per cent), woven production (down 32.3 per cent) and footwear (down 19.2 per cent).

However, some production sectors posted inventory indexes with high growths, such as sugar (up 49.6 per cent), beer (up 33.3 per cent) and batteries (up 37.7 per cent).

In July, the index of industrial production (IIP) surged by 5.2 per cent and the consumption index for the processing and manufacturing sector also jumped 8.3 per cent year-on-year.

SBV expands money printing factory

The management Board of Project NH09, under the State Bank of Viet Nam and contractors, on Sunday started construction work on expanding the national money printing factory.

The project aims to enhance the production capacity of the factory and to contribute to national currency security.

The project is expected to be completed by 2014 and begin operations in 2015.

Fourteen exports exceed $1bn

Statistics from the General Statistics Office show that 14 export items exceeded US$1 billion in revenue by the end of this July.

Telephones led the exports with a revenue of more than $11.6 billion, an 87 per cent increase from a year ago.

Next to telephones were textiles and garments ($9.64 billion), electronics and computers ($5.7 billion), footwear ($4.8 billion), crude oil ($3.1 billion), seafood ($3.4 billion), machinery and equipment ($3.1 billion), transport products ($2.97 billion), wood products ($2.9 billion), coffee ($1.9 billion), rice ($1.87 billion), rubber ($1.22 billion), bags and umbrellas ($1.08 billion) and iron and steel ($1.02 billion).

While exports of plastic wares reached $989 million, a 9.7 per cent increase.

From September 20, the Governor of the State Bank of Viet Nam could appoint suitable credit institutions to buy stakes in other lenders that are under special surveillance of the agency, Prime Minister Nguyen Tan Dung has announced.

The decision was issued late last week in the context that the nation was stepping up efforts to restructure the banking system, an important pillar for propping up the economy when bad debts remained one of the biggest hindrances to national economic recovery.

Dung stipulated that lenders having to sell stakes would be those which suffered losses with values exceeding the values of their equities and reserve funds recorded in latest financial reports, adding any termination of their operations could endanger systematic security.

The Governor woul decide how much stake credit institutions should purchase and the State Bank could itself acquire stakes in weak lenders if necessary. The central bank might support the designated institutions through refinancing loans, special loans or by loosening requirements for their operations for a certain period of time.

Divestments would occur when the weak lenders returned to normal operations or when they were acquired or merged, with central bank permission.

"I think the State Bank intervention in fragile banks is reasonable and necessary," independent financial expert Nguyen Tri Hieu told Thoi bao Ngan hang (Banking Times).

Hieu said that choices to deal with weak commercial banks could be to let them seek ways to restructure or bring them under State control. However, in the current context, State interference seemed to be the only way.

Currently few domestic investors dared to invest in weak commercial joint-stock banks, he noted.

Indian businesses discuss VN ties

A seminar was held in Chennai city, Tamil Nadu, India, to promote trade ties between Viet Nam and the country.

During the event, Vietnamese Trade Counsellor Nguyen Son Ha provided the participants with information about the Vietnamese economy, and bilateral trade and investment ties between Viet Nam and India.

He introduced them to the ASEAN (Viet Nam) – India free trade agreement, which took effect in June 2010, as well as the tax reduction road map to lure more Indian investors to Viet Nam.

The trade official answered the Indian firms' inquiries about Viet Nam's policies to attract foreign direct investment, including the Law on Foreign Investment, preferential treatment, and current policies on import-export management.

Ha provided the participants with contact details for related Vietnamese agencies and invited them to participate in several trade fairs to be held in Viet Nam later this year and in coming years.

Both countries are striving to achieve an annual bilateral trade turnover of $7 billion by 2015.

Last of highway widening underway

A 22-km stretch of National Highway 1 between Can Tho City and Hau Giang Province is being widened at a cost of US$87 million.

The section will be expanded to 21.6 meters, and have four lanes for motor vehicles (up from the current two) and two more for non-motorised vehicles. There are some newly built and upgraded bridges along the route.

The build-operate-transfer (BOT) project, when completed in early 2016, is expected to ease the growing congestion and reduce accidents on the highway.

It will link Can Tho's Cai Rang District with Hau Giang's Phung Hiep District.

The work that began last Friday is the last of 17 projects nation-wide to widen the trans-Viet Nam Highway.

Speaking at the groundbreaking ceremony, Deputy Prime Minister Hoang Trung Hai said widening the highway would spearhead expansion of trade, investment, and socio-economic development in the Mekong Delta region.

"It will also play an important role in the country's socio-economic development, defence, and security."

He hailed the project's BOT mode saying since public funding is limited the Government is implementing a policy of "socialising investment."

He also hailed the Ministry of Transport, contractors, and Can Tho and Hau Giang authorities for their meticulous preparation.

He urged investors and the involved localities to acquire and clear lands in a manner that would not only safeguard the benefits of their owners, workers, and the environment, but also ensure construction quality and progress to meet deadlines.

On the same day, construction of Co Chien Bridge on Highway 60 also began.

Being built at a cost of VND2.31 trillion ($110 million) — including VND1 trillion($47million) in public funds — the cable-stayed bridge will have four lanes spanning 16 meters and allow vehicles to travel at up to 80 kilometres.

When competed in 2016 it will connect the highway section between Tien Giang and Tra Vinh Provinces in the Mekong Delta.

It will reduce the distance between HCM City and Tra Vinh by 70 kilometres, take away part of the heavy traffic from National Highway 1, and help develop the Dinh An Economic Zone.

Remittances to City banks up to $2.2 billion

Remittance to the country through HCM City-based banks in the first seven months of the year rose to US$2.2 billion, or 19 per cent over the same period last year, according to statistics from the State Bank of Viet Nam's HCM City branch.

Nguyen Hoang Minh, deputy director of the branch, said that the amount of remittances converted into domestic currency have increased significantly from the past thanks to stable exchange rates. Most of the remittances were kept in foreign currency with only 11-12 per cent being converted into the dong, he said.

Besides, Minh said, remittances mostly haven't flowed into the real estate industry over the past two years. In the first six months of the year, remittance to the real estate industry was only 22 per cent against more than 50 per cent in 2011. Up to 49 per cent of the remittance in the period was for production.

Experts said that the remittance invested in production has been the most attractive to overseas Vietnamese, as the savings channel was less profitable due to low deposit rates, the gold investment channel risky and the security channel less popular.

Minh forecast that remittances into the country would jump to $4.5-4.7 billion for the whole of 2013, up 10-15 per cent against last year.

Minh said that remittances to the country often rise sharply in the fourth quarter, accounting for roughly 30-35 per cent of the total figure, as overseas Vietnamese seek to transfer money to their relatives for spending and shopping during year-end holidays.

Sugar stockpile could sweeten exports

The Ministry of Industry and Trade (MoIT) is considering giving permission to export unsold stockpiles of sugar, according to Tran Thanh Hai, deputy director of the Import-Export Department, at the ministry's press conference yesterday.

Statistics showed that the sugar inventory in June reached 492,000 tonnes, 179,000 tonnes higher than the same period last year.

Hai estimated that the amount of sugar to be consumed in the country from July to October would be around 270,000 tonnes, leaving the unsold inventory at 220,000 tonnes, not to mention the minimum imported sugar amount in accordance to the World Trade Organisation's regulations.

At the end of last month, the Ministry of Agriculture and Rural Development sent the sugar export proposal to the MoIT.

The 2013-14 sugar crop started this month. The agricultural ministry said that the output for this crop would meet and even exceed the demand from November.

Nguyen Hai, general secretary of the Viet Nam Sugar and Sugarcane Association, said that high inventories burdened sugar enterprises while smuggled sugar was also a headache.

According to the General Department of Customs, more than 100 cases violating regulations about temporary import for re-export of goods have occurred, totaling 13,805 tonnes and fines of VND2.432 billion (US$115,810).

An upgrade of status for the Petrolimex Joint-Stock Insurance Corporation (PJICO) was granted last week.

The new corporation status is part of a restructuring programme of PJICO's parent company, Petrolimex, towards 2015.

PJICO, which celebrated its 18th anniversary this week, was established by Petrolimex and other major shareholders, including Vietcombank, Vietnam Reinsurance Corp and Vietnam Steel Corp.

PJICO is the fourth largest non-life insurer in Viet Nam. Last year, company turnover was VND2.2 trillion ($105 million). It is expected to be VND92.5 trillion this year.

Also last week, the company opened its new head office building on HCM City's Nam Ky Khoi Nghia Street.

Regulations on tax-debt relief

The newly-issued Decree on detailed implementation of the Law on Tax Management (amended) stipulates three types of tax debt relief.

Accordingly, enterprises, which are declared bankruptcy, have conducted payments in line with the regulations of the Bankruptcy Law but have no asset to pay taxes shall be subjected to tax-debt relief.

Tax-debt relief shall also be imposed for individuals who are considered dead, missing under the law or losing his/her civil act capacity or having no asset to cover tax payment.

Except for the above two cases, tax debts which have not been paid for over ten years since the date of payment deadline or have not been collected by tax management agencies in spite of enforcing all means of coercion shall be cleared.

The Decree also stipulates that tax-debt relief on land use and land lease fees shall be in accordance with the Law on Land and its guiding documents.

The Decree will take effect since September 15, 2013.

Tiger prawn prices up but tra fish all at sea

Prices of tra fish and tiger prawn are moving in opposite directions in the Cuu Long (Mekong) Delta, with the former declining and the latter rising.

In early July tra prices went down sharply, leaving farmers unhappy.

Le Chi Binh, deputy chairman of An Giang Aqua-Culture Association, said the price of grade 1 tra stood at VND18,500-19,000 per kilogramme on July 24, leaving breeders to count losses of VND3,000 per kilogramme.

Plentiful supply from farms in the region and lower export prices are major causes for the decline in the local market, Binh said.

As a result, tra fish breeding ponds in An Giang, one of the provinces with the largest pond area in the delta, have shrunk by 18 per cent from last year to 779 ha.

The area, once around 2,200ha, could drop further as many farmers have given up breeding tra after the last harvest and switched to other kinds of fish.

Tong Minh Chanh, a tra farmer in Long Son commune in An Giang Province's Phu Tan District, said to avoid further losses from exports, he switched to farming the fish for domestic consumption, but the situation has not improved.

"I've decided to farm fry and breed loach," he told Viet Nam News.

Farmers also face problems when selling tra since buyers have many other sources of supply.

Le Van Loc of Tan Nhuan Dong commune in Dong Thap Province's Chau Thanh District, said he had two hectares of mature tra (of 600-700 grammes each, market price VND20,500-21,000 per kilogramme), but buyers were late to come.

But once the fish becomes oversized (over 700 grammes), prices fall to just VND18,000-19,000.

Unlike tra farmers, however, prawn farmers are happy because prices have gone up relentlessly in the past few months. Prawns weighing 50 grammes are now selling for VND230,000-240,000 per kilogramme, and those weighing 25 grammes fetch VND155,000.

Tran Thanh Tan, a farmer in Kien Giang Province's An Minh District, had sold 600kg of prawn from his 2ha pond.

He said if farmers harvest 250-300kg per hectare, they can get some profits since costs are not too high.

Many businesses too have invested in shrimp farming.

According to Nguyen Van Thanh, head of the Kien Giang Department of Agriculture and Rural Development's aquaculture division, farmers and businesses in the province have nearly 2,000 ha of shrimp farms, mainly in the Long Xuyen Quadrilateral.

Industrial manufacturing see rise in July

The Ministry of Industry and Trade announced that the index of industrial products (IIP) rose 7 percent in July, compared to the same period last year.

In which, mining, processing and manufacturing industries increased 6.8 percent; power generation and distribution grew 9.2 percent; and water supply and wastewater treatment surged 11.6 percent.

Industries which saw an increase in seven-month IIP compared to the same period last year include leather and leather products manufacturing with 17.3 percent; motor vehicles manufacturing with 14.3 percent; paper and paper products manufacturing with 11.6 percent; chemicals and chemical products with 10.8 percent; metal prefabricated building products manufacturing, excluding machinery, with 10.5 percent; and water exploitation, treatment, and supply with 10.5 percent.

Seven-month IIP of Ho Chi Minh City rose 5.3 percent year-on-year; Dong Nai Province hiked 5.6 percent; and Hanoi City climbed 4.2 percent.

Inventory index of industrial processing and manufacturing by July 1 emerged 8.8 percent year-on-year. Some industries with higher inventory levels compared to the same period last year include beverages with 33.3 percent; cigarettes with 22.2 percent; medicines and pharmaceutical chemicals with 20.6 percent; chemicals and chemical products with 14.3 percent; electronic devices with 12.2 percent; and paper and paper products with 12.1 percent.

According to the ministry, imports of input materials have improved in recent months, signaling recovery of some industries, especially processing and manufacturing. However, the industry still has to focus on dealing with high inventory levels as local and global demand remains low.

Revenue from export of telephones touches US$11.2 billion

According to the Ministry of Industry and Trade, revenue from export of telephones has reached US$11.2 billion, an increase of 1.7 percent against last month and 9.8 percent against the same period last year.

Meanwhile, import revenue was at US$11 billion, a 2.6 percent month-on-month increase and 11.6 percent against the same period last year.

Accordingly, July saw a trade surplus of US$200 million.

Yet export and import of Foreign Direct Investment (FDI) saw higher growth than domestic sector.

Total imports of the domestic sector reached US$7.65 billion while the FDI sector export totaled US$6.91 billion.

The processing industry sector increased 25.8 percent over the same period last year, playing an important role in export revenue growth and accounting for 69.5 percent of the country’s total export revenue.

Export of agriculture and fishery products in July saw rise of 8.9 percent month-on-month but a year-on-year decrease of 7.2 percent due to low prices and bad weather conditions.

Trade surplus in July maintained the same as June at around US$200 million, showing an economic recovery despite difficulties.

ADB helps build new transport link in Mekong Delta

The Asian Development Bank (ADB) has agreed to lend Vietnam US$410 million to build sections of a second arterial highway connecting Ho Chi Minh City to the Mekong Delta and southern coastal regions.

This transport link will help open up Vietnam’s western provinces in the Mekong River Delta and support their economic and industrial development.

Rustam Ishenaliev, a specialist from ADB’s Southeast Asia Department, said Vietnam has a rapidly growing export-led economy, and the Mekong Delta is a key economic driver which produces over 60% of the country’s agricultural and fishery outputs and the third largest industrial center.

The ADB-funded project will build a section of the Second Southern Highway, comprising two cable-stayed bridges with a combined length of 5km and associated access and interconnecting roads totaling 26km. The road, which is scheduled to be open to traffic by the end of 2017, will run on the boundaries of An Giang, Can Tho, and Dong Thap provinces to the west of the Mekong Delta.

In addition to transport convenience, the project is expected to support more inclusive development, improve access to basic social and health services, increase national food security and facilitate private sector investment in the region.

The project is estimated to cost US$860 million, with US$410 million financed by ADB’s Ordinary Capital Resources and AUD$160 million by the Australian Agency for International Development (AusAID). The Export-Import Bank of Korea will grant US$260 million, while the Government of Vietnam will contribute US$56 million.

Hanoi to host Thai Product Exhibition

Nearly 150 Thai companies will participate in the 13th Thai Product Exhibition scheduled for August 15-18 in Hanoi.

The information was unveiled at a press conference in Hanoi on August 6 held by the Department of International Trade Promotion under the Thai Ministry of Commerce.

They will put up 180 stalls to showcase household utensils, garments and textiles, jewelry, automobile and bicycle’s components, electronic equipment and spare parts.

During the exhibition, there will be diverse activities to promote bilateral trade and cultural exchange between Vietnam and Thailand.

Hitachi secures infrastructure foothold in Vietnam

Hitachi Asia Ltd announced the establishment of its subsidiary firm in Ho Chi Minh City on August 5, giving the company greater access to one of the region’s most promising economies.

Established with initial capital of approximately US$500,000, Hitachi Asia (Vietnam) Co Ltd will also help its parent company penetrate deeper into infrastructure, power systems and IT systems firms in Vietnam.

“Vietnam’s economic growth provides plenty of business opportunity for Hitachi to fulfill the market demand for social infrastructure products, services and solutions,” said Yukio Toyoshima, managing director of Hitachi Asia Ltd.

The Tokyo-based company entered into a 37 billion yen (US$376 million) contract with the Management Authority for HCM City’s Urban Railways in June to construct Vietnam’s first urban railway in the southern city.

Hitachi is to deliver sub-systems including 17 train sets with a total of 51 carriages, a signaling system, a telecommunications system including wireless train radio and a power supply system, as well as platform screen doors, an automatic fare collection system and depot facilities.

It is also scheduled to undertake five years’ maintenance work after the start of commercial operations, with details due to be stipulated in a separate agreement.

The new urban railway is scheduled to begin operations in early 2018.

Over recent years, Vietnam has attracted a raft of Foreign Direct Investment (FDI) and Official Development Assistance (ODA) from overseas, with Japan accounting for a sizeable proportion of both FDI and ODA to the country.

Of the total US$13 billion FDI in Vietnam last year, US$5.1 billion was from Japan, representing 40%. Meanwhile, the total committed 2012 Japanese ODA to Vietnam was 286 billion yen (more than US$2.9 billion).

Hitachi is a leading global electronics company with approximately 326,000 employees worldwide. The company’s combined revenue for the fiscal year 2012 (ended March 31, 2013) totaled 9,041 billion yen (US$96.1 billion).

Electronic traceability for export goods

Enterprises are expected to benefit from tracing export goods through electronic or digital tagging.

Vietnam is a world leader in agricultural produce. But the overwhelming majority of Vietnamese producers have not realised the importance of clarity and transparency and the way they access information can enhance their competitiveness in the international market.

Some companies are afraid of revealing trade secrets, while others use obfuscation to hide trade frauds.

According to the Ministry of Agriculture and Rural Development (MARD), almost all domestic businesses use paper records. They invent a code for each batch that is printed on packaging according to the tacid agreement between trade partners.

This means only businesses can understand the code and investigate product origins. Regulations require traces to be completed within 24 hours, but it is almost impossible in Vietnam. Storing records is more difficult than keeping them in six months let alone two years.

No wonder state management agencies, importers, and consumers find it all the more difficult to trace the roots of every product.

State management agencies have urged businesses to adopt more modern methods of tracing product origin but have thus far enjoyed negligible success.

The “TraceVerified” electronic traceability system for agricultural and seafood products will help reduce red tape, encourage agriculture’s sustainable development, and improve the competitiveness of Vietnamese exports on world markets.

According to the Danish International Development Agency, the Global Competitive Assistance Program’s “TraceVerified” system will bring practical benefits to state management agencies and businesses involved in the import-export sector.

Danish Ambassador to Vietnam Frederik Andre Henrik Christian cited the difference between EU and US laws which has affected Vietnamese farm produce exports. Tracing product origins by paper work is too slow to compare with electronic traceability – a common practice in Europe and America.

Dr Dang Kim Son, Director of the Institute of Policy and Strategy for Agricultural and Rural Development, said producers should ensure transparency to assist businesses.

With 14 million farmers working on a large scale, it is important to help them avoid the risk of market fluctuations as they are at the mercy of dishonest traders.

Farmers need to collect data on scale, output, competition, input materials, production services, and investment policies. Vietnam’s agricultural producers and businesses are disadvantaged by their comparatively sluggish start.

“TraceVerified” Project Manager Dr Nguyen Hong Minh said the Ministry of Agriculture and Rural Development should establish locality codes for every agricultural and seafood product in line with international standards.

“TraceVerified” Deputy Director Ly Hoang Hai explained how scannable printed codes connected to the website network can meet the origin trace requirements of different importers.

The “TraceVerified” system is currently in place for 12 local businesses. And the project managers plan to install free systems for seafood export businesses by the end of 2014.

According to experts, the application of a universal electronic traceability system is certainly feasible, but it will require intervention from state management agencies, enterprise associations, and new businesses to ensure its success.

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