Can Tho wants to open more air routes

Can Tho City government has committed to support airlines to open air links between the city and domestic and international destinations, with a maximum subsidy of VND8.5 billion a year, not to mention other assistance for marketing and office rental.

On May 10, leaders of Can Tho City met with representatives of tourism and aviation companies to discuss a plan to add flights to and from the city.

In addition, the municipal government is drafting mechanisms and policies to support enterprises to open air routes, including support for office rental, promotion, ground service fees and financial aid for vacant seats in the initial time.

According to the draft, except Can Tho - Hanoi, Can Tho - Danang, Can Tho - Phu Quoc and Can Tho - Con Dao routes, airlines opening new routes to and from Can Tho will enjoy incentives such as office rental for 12 months with a maximum subsidy of VND15 million per month per firm. Ground service fees will be halved in the first year for domestic flights while international flights will receive an additional 30% discount in the following year.

The city will also cover the first year's losses for airlines, at a minimum of VND4.5 billion and a maximum of VND8.5 billion, depending on routes.

In order to promote tourism development, the city has asked competent agencies to encourage travel firms to offer preferential prices for tourists traveling by air to the city. Can Tho leaders expect to have air links with Haiphong, Cam Ranh and Bangkok of Thailand this year.

Can Tho International Airport currently has domestic flights to Hanoi, Phu Quoc, Con Dao and Danang. Meanwhile, routes connecting the city with Dalat and Nha Trang have been suspended due to losses.

For international routes, flights from the city to Taipei, Taiwan are just available during Lunar New Year holiday while chartered flights to Bangkok, Thailand have come to a halt.

Last year, the number of visitors to Can Tho City grew 14% year-on-year to reach 5.3 million, including over 590,000 foreign visitors. Total tourism revenue reached VND1,826 billion (about US$80.3 million), up 5% over the previous year.

MARD asks Grow Asia to help restructure agriculture

Minister of Agriculture and Rural Development Nguyen Xuan Cuong has asked Grow Asia to help Vietnam restructure agriculture, especially to create a value chain for Vietnamese farm produce, heard the Grow Asia Forum in Cambodia on May 10.

The Ministry of Agriculture and Rural Development (MARD) of Vietnam previously had made a commitment to the World Economic Forum to achieve the 20:20:20 goal by 2020. This goal is comprised of three components, namely a 20% increase in production efficiency, a 20% reduction of poverty and a 20% cut of emissions.

To meet the target, MARD has coordinated with multinational companies to establish public-private partnerships to promote and improve productivity of numerous types of farm produce, including coffee, tea, fruit, vegetables, seafood, pepper and spices, as well as to share experiences in agricultural finance. Besides, the ministry intends to add rice and livestock to the list of commodities receiving support, Cuong said at the forum, according to material sent to the Daily by MARD.

The partnership with Grow Asia within the World Economic Forum in the 2014-2015 period helped the ministry consolidate and institutionalize the activities of public-private partnerships through the establishment of the Partnership for Sustainable Agriculture in Vietnam (PSAV). In particular, the close coordination between national management agencies and companies in developing sustainable agriculture played an important role in the application of high technologies to add value to and enhance competitiveness of Vietnamese farm produce.

Currently, MARD is implementing a project of restructuring agriculture towards higher added value and sustainable development. The ministry focuses on the development of value chains for three categories of farm produce: national key products, provincial key products and regional specialties. The development of these value chains will help improve the quality and competitiveness of the products.

Therefore, Cuong expected Grow Asia to work with the ministry to accelerate the achievement of these goals by continuing to strengthen and expand partnerships for other commodities such as rice, livestock, cashew, and wood and furniture, and connect multinational corporations with local firms and farmers to promote technology transfer.

"We are particularly interested in experiences in and knowledge of developing high-tech agriculture of international experts and corporations," Cuong said.

Many Korean firms come knocking

As many as 107 South Korean companies active in the fields of environment and energy technology are coming to Vietnam to look for partners and explore the market through a specialized exhibition that will open today in HCMC.

Jaehan Shin, exhibition team manager of Bexco, a Korean firm joining the International Exhibition for Environment and Energy Technology (Entech Vietnam 2017), told reporters on May 10 that they were the largest delegation of environment and energy technology of the country coming to sound out business opportunities in Vietnam. The exhibition is taking place at the Saigon Exhibition and Convention Center (SECC) in District 7.

This event has been held eight times in a row in Hanoi. This is the first time it will take place in HCMC, attracting the attention of many Korean technology companies who see great growth potential in the domestic market.

Shin said Korean businesses were interested in the Vietnamese market and if SECC could offer more space, the number of Korean enterprises participating in this exhibition might be up to 200. The prominent technologies of Korean firms to be introduced at Entech 2017 involve power generation, wastewater treatment and renewable energy.

Most of Korea’s major companies operating in these areas are present in Vietnam. Participants in this event are mainly small- and medium-sized enterprises with technology suitable for domestic producers, said Shin.

Entech 2016 in Hanoi allowed Korean businesses to cut deals with more than 270 Vietnamese customers and those from other countries in Southeast Asia, with a total value of over US$35 million. This time, Shin hopes the total contract value could increase to about US$37 million.

Through the Korea Trade and Investment Promotion Agency (Kotra), businesses from this Northeast Asian nation have invited about 300 Vietnamese enterprises that are buyers or importers to attend this event.

Entech Vietnam 2017 in HCMC will last until this Saturday, featuring 260 booths of 150 companies from South Korea, Japan, Taiwan, China and Vietnam. This year, Entech Vietnam takes place alongside the Eco Products International Fair 2017 (EPIF), organized by the Asian Productivity Organization (APO).

Together the exhibition, there will be an international forum on environment and economy called “Action for the future towards sustainable development”, a meeting between enterprises and leaders of the Ministry of Natural Resources and Environment, a workshop on “Applying environmentally friendly technology in waste disposal”, the Vietnam-Korea Environmental Industry Cooperation Forum, and a workshop on “Policy dialogue on low carbon technology and Vietnam’s own contributions.”

Long An suggests using liquefied gas for power center

Long An Province government has suggested the Ministry of Industry and Trade allow it to use liquefied natural gas to fuel its power center instead of coal, or apply modern Japanese or Korean technologies to ensure environmental protection there.

The US$5-billion Long An thermo-power center with a total designed capacity of 2,800MW will supply about 17.7 GWh of electricity per year to the national grid to help ease power shortages in the south. The Ministry of Industry and Trade is currently garnering comment on the selection of a site for the power center, either Long Huu Dong in Can Duoc District or Phuoc Vinh Dong in Can Giuoc District, Long An Province.

In a document sent to the Ministry of Industry and Trade on May 3, the Long An People's Committee agreed to keep the plan to build the power center in Phuoc Vinh Dong Commune. However, instead of using coal, Long An suggested switching to liquefied natural gas (LNG).

In case the power center is built in Long Huu Dong Commune, the province suggested using Ultra Supper Critical (USC) technology of Japan or Korea to ensure environmental protection.

Earlier at the meeting with localities and related ministries on selecting a location for the power center on January 5, 2017, Deputy Minister of Industry and Trade Hoang Quoc Vuong decided to choose Phuoc Vinh Dong Commune as the location for the project due to advantages like easier site clearance.

However, in a document sent to the HCMC People's Committee to report to the Prime Minister, the Department of Industry and Trade of HCMC expressed concern over the power center project’s possible negative impact on the environment.

According to the department, even if modern technologies are applied, the project would still pose high environmental risks due to dust emissions, coal ashes and wastewater discharge, affecting the communities in nearby areas, especially Hiep Phuoc urban area of HCMC.

According to experts, dust from coal-fired power plants can fly within a 50-kilometer radius from the power plant, depending on the height of the chimney. Therefore, it is unsuitable to build the power center on the border between HCMC and Long An.

Vietnam Airlines, Vietjet perform well in Q1

National flag carrier Vietnam Airlines and low-cost counterpart Vietjet posted strong revenue growth despite rising fuel costs in the first quarter of this year.

Vietnam Airlines unveiled its first-quarter business results and a 2016 annual report on May 10, saying that it gained good results despite unfavorable market conditions.

In particular, the average fuel cost was US$65.1 per barrel, up US$13.64 over the same period last year. This led to its input cost rising by VND1 trillion (US$43.9 million).

However, its total revenue and consolidated income amounted to a staggering VND21.2 trillion, a year-on-year rise of around 12.5%. The airline got consolidated pre-tax profit of roughly VND854 billion.

Its parent company posted revenue of VND16.2 trillion, up 5% year-on-year, and pre-tax profit of more than VND563 billion.

In the period, Vietnam Airlines operated nearly 34,500 flights, 1.3% higher than its quarterly plan, and transported over five million passengers and nearly 76,000 tons of cargo, up 9.3% and 23% over the same period last year respectively. Notably, it still maintained a domestic market share of a whopping 61%.

Meanwhile, Vietjet’s quarter-one financial report showed the domestic fuel cost rose to an average of VND17.9 million per ton compared to VND12.3 million in the first quarter of last year. But the pickup had been factored in its business plan.

The low-cost carrier saw its revenue increasing by 43% year-on-year to over VND5 trillion, 10.6% higher than its quarterly target. Especially, it posted strong growth on international routes.

Its after-tax profit grew by 6.8% to VND382 billion against the same period of 2016. It served around 3.7 million passengers, up 29% year-on-year.

The airline added three international services in quarter one, taking the total to 63 routes. It reported seat occupancy of 88%, and a flight punctuality ratio of 87.7%, up by four points year-on-year.

Its equity rose from VND3.07 trillion as of early January to VND5.2 trillion in late March.

Vietjet plans to put Airbus A320/321 NEO aircraft into service to reduce its fuel cost by 15%.

Prime Minister wants advertising market order restored

Prime Minister Nguyen Xuan Phuc has signed a new directive requiring that order on the advertising market be restored.

According to Directive 17/CT-TTg, the Prime Minister requests ministers, heads of ministerial-level agencies, and leaders of local governments to strengthen their management of the advertising market, strictly handle violations, and make positive changes to promote the development of the advertising market.

The directive calls for protection of the interests of stakeholders and strict implementation of the Advertising Law and relevant legal documents.

It is a must to protect the healthy advertising business environment, guarantee the legitimate rights and interests of those exposed to advertisements and ensure healthy competition among advertisers, says the directive. The directive underscores the need to build a transparent advertising environment, contribute to the development of domestic production and business, and add value to Vietnamese brand names.

The Ministry of Construction is requested to complete revisions to national technical regulations on outdoor advertising to promptly remove hindrances to help localities draw up and implement advertising plans. The results of implementation should be reported to the Prime Minister in the third quarter of 2017.

The Ministry of Information and Communications is tasked with stepping up inspections into advertising law compliance in the press, on the Internet and in other media. Violations should be strictly handled.

The Ministries of Health, Agriculture-Rural Development and Industry-Trade will have to work with the Ministry of Culture, Sports and Tourism to evaluate those products advertised and verifying the truth of ads for special products and services under their management.

The Prime Minister places emphasis on medicines, milk and nutritional food for infants, food and functional foods, cosmetics, pesticides, fertilizers and bio-products for crop production and animal husbandry. Ad contents in such areas must comply with the law, cultural norms and customs of Vietnam.

Prime Minister Phuc orders the culture ministry to review and improve legal documents on advertising. The ministry is also told to draw up a professional code of conduct in advertising and a manual on outdoor advertising planning for localities to ensure conformity throughout the country, and report the results to the Prime Minister in the third quarter.

The Prime Minister asks leaders of local governments to focus on directing and correcting the presentation in foreign languages on billboards, signboards of organizations and individuals.

Sites dedicated to classifieds should be built (or arranged). Mass organizations and communities should be encouraged to participate in the removal of illegitimate classifieds.

With Decree 28 effective from May 5, higher penalties will be imposed on those publishing illegal ads and those hiring them.

For example, a fine of VND1-2 million will be slapped on persons hanging, placing, gluing and painting illegitimate ads for products or services on electricity poles, traffic signs and public trees, and VND5-10 million on those having them do so.

In addition, reprimand or fine of VND200,000-500,000 will be levied on those distributing leaflets which affect urban aesthetics, and traffic and social order.

HCMC calls for more investment in healthcare sector

Although HCMC has made strong efforts to develop its healthcare sector, especially through public-private partnership (PPP), funding has remained woefully inadequate and the city will need to mobilize capital from other sources.

Do Quy Hiep, deputy director of the Division for Public-Private Partnership under the HCMC Department of Planning and Investment, said that as of April 20, the city had had 114 PPP projects with a total investment estimated at VND131.7 trillion (US$5.8 billion), and that healthcare projects accounted for a fraction with just VND5 trillion. As the demand for health services has increased rapidly, public-private partnerships play an important role in the development of the healthcare sector.

According to Hiep, due to financial constraints, the city has been calling for stronger private sector engagement.

Currently, the city has 10 healthcare projects carried out in PPP format, in which private investors cover facilities and equipment while public hospitals are responsible for human resources and operations. These include Saigon General Hospital, District 5 Hospital, treatment zone 2 of Nguyen Tri Phuong Hospital, City International Hospital (CIH) and People's Hospital 115.

However, construction has not started on these projects since the investors have only completed paperwork.

The government of HCMC has just approved a plan to implement training programs for health workers in the 2016-2020 period, targeting to have 20 doctors per 10,000 people and 35 nurses per 10,000 people by 2020.

NganLuong.vn launches online payment service

Ngan Luong JSC (NganLuong.vn) on Tuesday launched an automatic payment service called Alepay Tokenization like Uber and Amazon payment services.

Alepay Tokenization service through a website at www.alepay.vn allows buyers to link their bank accounts to the sellers’ websites for automatic payments for their transactions.

The service is expected to provide consumers with a simple and convenient payment solution and boost sales on websites and apps in Vietnam.

A meaningless character string called Token will be sent to the merchant's website or app after the first successful transaction. Merchants’ websites or apps with a Token code connected with Alepay service will automatically deduct money from customers’ accounts.

The service is beneficial to small merchants or startup enterprises because they do not need security infrastructure meeting strict standards of banks.

Alepay Tokenization is useful to services with periodic charges such as gymnastics, telecommunications, domain hosting, cloud computing service, online sales and online ticket sales.

According to a study by Business Intelligence, the total value of unfinished online shopping orders in 2016 amounted to US$4.6 trillion, with 46% of the deals cancelled at the payment step and 39% at the information provision step. This study shows that buyers are afraid of spending too much time providing information, so websites and apps need to simplify the process.

Typically, Amazon's 1-Click Checkout service allows customers to save delivery and payment information for next purchases with a single click, similar to Uber’s online payment service, which also facilitates customers because it is time-saving.

Pig prices inching up

Live pig prices in Long An and Dong Nai provinces have begun easing off their record lows that have caused heavy losses for farmers.

Live pig prices have increased in the past 10 days and are now hovering around VND30,000 a kilo as neighboring Cambodia has been found as a new export market. Farmers in Long An Province have refused to sell pigs to HCMC enterprises.

Dinh Thi Phuong Khanh, deputy director of Long An’s Department of Agriculture and Rural Development, told the Daily on May 10 that prices of live pigs of standard size, from 90 to 120 kilos, have picked up by VND5,000 a kilo.

Long An leaders worked with major meat processor Vissan on April 25 to cope with the pig supply glut that had prompted a sharp fall in prices. However, the two sides failed to cut a deal as the price suggested by Vissan was too low while the deferred payment method was not agreeable to farmers.

Therefore, after the meeting, farmers have sold pigs to traders rather than Vissan due to better prices and immediate payments.

Nguyen Dang Phu, deputy general director of Vissan, confirmed the information. Vissan suggested a price of VND26,000-26,500 a kilo. Pigs bought by traders have made their way to Cambodia, Phu added.

Meanwhile, Nguyen Tri Cong, chairman of the Dong Nai Livestock Association, said the live pig price in Dong Nai is also improving. Pigs meeting VietGap standards are quoted at VND31,500-32,000 a kilo while type 1 and oversized pigs are sold at VND28,000-30,000 and VND26,000-27,000 a kilo respectively.

Savills says 17,000 ‘second homes’ will join market in three years

More than 17,000 mix-used condos often referred to as “second homes,” mainly in coastal areas, will be launched by developers in the next three years, according to real estate management and consulting firm Savills Vietnam.

The second homes are mainly built in coastal areas such as Khanh Hoa, Danang, Phu Quoc, Ho Tram, Halong and Quang Nam, the company said.

There are about 36 second-home projects active in Vietnam with over 7,000 units from mid-end to luxury segments. However, only a small number of projects have been completed.

Condotel is currently the most popular type of second-home products. Condotels will account for 65% of the second home supply in major coastal areas by 2019. More and more projects have been launched recently with strong competition in terms of scale and attractive return.

However, Savills said that in most condotels, little attention has been paid to the “hotel functions.”

The condotel should be able to operate as a hotel room to create revenues while most projects are not well planned to this end. To attract buyers, developers have to constantly promote their products and commit a high rate of return in the face of fierce competition, said Rudolf Hever, director of the Hotel Consulting Department of Savills Asia Pacific.

The guaranteed annual return in Vietnam can be as high as 12% for eight years. However, products with a guaranteed return are more risky for buyers.

The risks mainly surface when construction is completed and such condotels are put to operation. If the guaranteed return is higher than the real cash flow, the developers will have to add funds to keep their promises to homebuyers, Hever added.

Therefore, buyers should choose high-quality products from prestigious investors. Meanwhile, investors need to have good plans before implementing condotel projects.

Ministers to seek clarity on trade in Hà Nội

Trade ministers and officials from the 21 APEC member economies have begun convening in Hà Nội to alleviate uncertainty about the future of trade in the Asia-Pacific.

They will discuss its capacity to boost employment and living standards for all people across the region. 

The APEC Ministers Responsible for Trade Meeting on May 20-21 will cap off a pivotal set of policy development meetings here over the next 10 days to decide the next steps for trade amid rising scepticism about the benefits of globalisation and rapid social and technological change. 

Chaired by Việt Nam Trade and Industry Minister Trần Tuấn Anh, the proceedings will build on initiatives introduced during technical exchanges between trade and sectoral officials to confront these challenges, which will be fleshed out by APEC’s senior officials on May 17-18. This work will be shaped by new trade and growth projections for the APEC region, which accounts for half of global trade, to be unveiled on May 17. 

Pacific Alliance, Regional Comprehensive Economic Partnership and Trans-Pacific Partnership ministerial meetings are expected to be held on the margins of the APEC Ministers Responsible for Trade Meeting in Hà Nội. Ministers and officials will focus on establishing freer Asia-Pacific trade that secures the advantages of globalisation while safeguarding the welfare of people hurt by it. 

“Momentum on market integration and trade is being tested in ways we have not seen since these forces transformed the Asia-Pacific into the engine of the world economy,” Alan Bollard, executive director of the APEC Secretariat, said. “The shifting landscape is both a cause for consternation and an opportunity to work out and align new policy approaches to globalisation that could result in improved economic and social outcomes.” 

Notably, the APEC High-Level Policy Dialogue on Human Resources Development in the Digital Age on May 14-16 will build support for education and skills training compatible with the changing needs of employers.

VNR proposes US$308 mln in fund for railway renovation

The Vietnam Railway Corporation (VNR) has asked the Ministry of Transport for US$308.2 million in Government bonds to renovate the Hanoi – HCM City rail system from 2017 – 2020

The North-South Railway is a single-track metre gauge line with a total length of 1,726 kilometres, an official from the corporation said, adding that since it was constructed more than eight decades ago, much of the railway’s infrastructure – including rail tracks, bridges, tunnels, and level crossings – is outdated or in poor condition, reducing transportation capacity and efficiency.

The old system forces passenger trains to travel at 50 km per hour and cargo trains at 35 km per hour on average.

The VNR has proposed four key projects, worth about 1.6 – 1.8 trillion VND (70.4 million – 79.3 million USD) each, to upgrade infrastructure on the Hanoi – Vinh and Nha Trang – HCM City sections, and reinforce weak bridges and tunnels.

It is estimated that once the projects are completed, they will help the corporation increase revenue by 1 billion VND (44,040 USD) per day and reduce freight rates.

Pre-listing firm investments promise large gains

Recent returns have shown that investments in pre-listing companies promise big gains for investors who make bets on the firms with impressive business results and clear listing plans.

Speculations in recent listings such as budget airline Vietjet (VJC) and real estate developer Novaland Investment Group (NVL) have brought investors returns of over 40 percent. Prices of these shares climbed 43-46 percent in only one to two months of listing.

Investors who bought shares of Vietnam National Petroleum Group (PLX) when it made the initial public offering earned profits of nearly 230 percent. 

PLX price soared to 49,000 VND (2.16 USD) on its April 21, 2017 debut, far exceeding its IPO price of over 15,000 VND in 2011.

These return rates have outperformed the benchmark VN-Index, which has expanded just around 8 percent this year.

Similar success is expected in the coming listings of Siam Brothers Vietnam Joint Stock Company and Kido Frozen Food Joint Stock Company.

Siam Brothers Vietnam, a Thai manufacturer for rope and net used for fishing, maritime transportation and agricultural sectors, will list 20.54 million shares with the sticker SBV on May 16 on the HCM Stock Exchange at the reference price of 40,000 VND a share.

The 60-year-old company holds a 40 percent market share of the fishing lines. 90 percent of the Vietnamese offshore fishing fleets are using specialized rope manufactured by Siam Brothers Vietnam.

The company’s shares are trading around 45,000-48,000 VND apiece on the Over-the-Counter (OTC) market, a rise of 36.4 percent over its IPO price of 33,000 VND in September 2016.

With a high dividend rate (mostly over 40 percent in cash since 2011) and good profit growth (39 percent in 2016 and 15-23 percent in the next two years), its share prices are expected to increase when it starts trading this month.

Share prices of Kido Frozen Food (KDF) are also increasing on the OTC market, trading around 58,000-60,000 VND a share, up 11.5 percent over its IPO price in March this year.

Kido Frozen Food is the country’s leading ice-cream market leader with a 35-per-cent market share in 2016. It reported after-tax profits of nearly 143 billion VND (6.2 million USD) last year, a year-on-year growth of 85 percent.

The company plans to debut shares on the HCM Stock Exchange in the third quarter of 2017.

HCM City: Eco-Products Int’l Fair promotes green growth

The Eco-Products International Fair 2017 (EPIF) opened at the Saigon Exhibition and Convention Centre in HCM City on May 11 with the theme “Green Technologies and Products: Actions for the Future”.

The event is co-held by the Asian Productivity Organisation (APO), the Vietnam Environment Administration (VEA), and the Vietnam Chamber of Commerce (VCCI).

Addressing the opening ceremony, Deputy Minister of Science and Technology Tran Viet Thanh said the EPIF 2017 is an important event that reflects directions of Vietnam’s economic development. 

It also aims to raise public awareness of sustainable development through production and consumption of eco-friendly products, services and technologies, he noted.

Thanh emphasised that as sustainable growth is a vital strategic direction for the national development, the government’s policies and regulations have been improved to facilitate the private sector producing green products.

Local firms should shift their focus on developing eco-friendly products and services in order to meet the increasing demand of consumers and strict requirements of the global supply chain, he suggested.

VCCI Vice President Hoang Quang Phong said the event provides an opportunity for not only enterprises to show off their latest green products and services and seek partnership but also policymakers to identify needs and solutions for green growth in Vietnam.

Hajime Bada, Chairperson of the Japan-based Green Productivity Advisory Committee, described the fair as a bridge for firms to set up cooperation and transfer of green production and renewable energy technologies.

The EPIF was initiated by the APO in 2004 and is organised in rotation between the APO members. This year is the second time Vietnam has hosted the event which runs through May 13.

Hanoi’s hi-tech farm expansion remains slow

Agricultural production in the capital city remains small-scale and outdated, despite successful land reform and investment in irrigation networks for many years, says the Nong Thon Ngay Nay (Countryside Today) newspaper.

The outdated production methods are due to slow application of modern technologies, and it has led to low economic values.

Land use certificates have been successfully granted, which is a prerequisite for farmers to expand production or contribute land as a capital contribution to investment projects.

However, the city’s agricultural production has not yet reaped high economic value because most of households still use traditional production methods.

Explaining the slow application of technology in agricultural production, Chairman of the Quoc Oai District People’s Committee, Nguyen Manh Quyen, told the paper that “at present the municipal authority fixed land areas for rice planting”.

“This is an obstacle for transitioning the land for other crops that require high technologies and bring higher economic values,” said Quyen.

However, in Quoc Oai District, some businesses have bought lands from residents to set up hi-tech farms and achieved some progresses, he said.

Still, though, businesses face the difficult fact that agricultural land prices rocket upward when locals hear about hi-tech farming projects, he said.

Analysing the situation, Dr. Dang Van Dong, director of the Vegetable and Fruit Institute, said “this is due to ineffective management and a lack of close co-operation among farmers, businesses, scientists and authorities”.

“So far, we haven’t mobilised sources from domestic private and foreign businesses to invest in hi-tech farming,” he said.

Chu Phu My, director of the Hanoi Agriculture and Rural Development Department, said in the context of fierce climate change and rapid urbanisation, farming is indispensable to surviving and competing in the international integration process.

The capital city set a goal that by 2020, hi-tech agricultural production value will account for 35 percent of the total agricultural value.

However, so far, the hi-tech farming area designated for 2016-2020 is still slow, according to review of the city’s steering committee of new rural development.

According to Ha Minh Hai, director of the Hanoi Finance Department, appropriate policies are considered a prerequisite for luring capital to hi-tech farming. Each local needs to review agricultural production plans to attract investors.

Industrial land up despite TPP uncertainty

Industrial land in Vietnam 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 percent over the same period last year.

Alex Crane, director of the property service firm, was quoted by Dau Tu (Investment) newspaper as saying that Vietnam 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 Vietnam attracted record foreign direct investment (FDI), at 7.7 billion USD in the first quarter of this year, nearly 85 percent 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 Vietnam had four other free trade agreements (FTAs) under negotiation, which are expected to boost the investment flow into Vietnam, 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.

Thua Thien – Hue develops sustainable afforestation

The central province of Thua Thien – Hue targets to plant 13,000 hectares of forests, of which 40 percent meets the global environmentally-friendly standard, by 2020.

To realise the targets, the province has set up the Forest Owners Sustainable Development Association (FOSDA) to help protect the legitimate rights and benefits of small forest household owners in sustainable forestry-related activities.

The association encourages forests owners to involve in sustainable management of forests in line with the global forest certification of the Forest Stewardship Council (FSC).

Besides, Thua Thien – Hue offers a number of incentives for organisations and individuals to apply advanced technology in forestry production to increase the productivity and quality.

Since 2016, with financial and technical assistance under a project funded by the World Wide Fund for Nature (WWF), groups of families and firms who join the FSC certificates have passed the first assessment conducted by the German GFA Consulting Group. Of which, 14 household groups of 241 members received the FSC certificate for 951 hectares of forests.

The Tien Phong Forestry Company has over 3,096 hectares of forests certified with the FSC certificate. 

Models of forests with big trees have been developed on 55 hectares in the province, with the participation of 34 households in the mountainous communes of Hong Ha, Huong Nguyen in A Luoi district; Hong Tien, Binh Thanh, Binh Dien, and Huong Ho in Huong Tra town, using funding from the national forestry promotion programme.

Two training courses were held for 50 local managers and members of the FSC-joined groups in the districts and towns of Huong Tra, Huong Thuy, Phong Dien and Phu Loc.

Vietnam, US seeks to boost agriculture cooperation

Senior Vietnamese and US officials on agriculture met in Hanoi on May 11 to discuss how to boost trade relations in the field between the two countries.

Vietnamese Deputy Minister of Agriculture and Rural Development (MARD) Tran Thanh Nam wished the US would create more favourable conditions for Vietnamese businesses working in fishery production and planting to increase trade with the US. 

He raised his voice on the catfish inspection programme of United States Department of Agriculture (USDA), saying that some points in the programme have yet to suit conditions of Vietnam and others. He suggested more discussions with US authorised agencies.

Vietnam hopes for the USDA’s early recognition on related procedures for the export of Vietnamese mangos and star apples to the US, as well as technical assistance and organic agricultural projects, including a training course on organic product certification for Vietnamese experts, Nam said.

In addition, Deputy Minister Nam asked the US to transfer the inspection programme on plant quarantine to Vietnam while continuing to assist in monitoring the amount of plant protection drugs in exported products to the US. 

For his part, Chief of the USDA’s Office of Agreements and Scientific Affairs, Foreign Agricultural Service Robert Macke said the US has worked to address Vietnam’s concern over catfish inspection over the past years, affirming the US’ support for Vietnam in the matter.

He called for the MARD’s support for the approval of the Vietnamese Government to the US Embassy’s proposal on new positions of the USDA at offices in Hanoi and Ho Chi Minh City. 

Topics on food safety cooperation in APEC and other bilateral trade collaboration issues were also discussed at the meeting.

Thanh Hoa reburies martyr remains recovered from Laos

The central province of Thanh Hoa held a ceremony on May 11 to re-bury 21 sets of remains of Vietnamese volunteer soldiers and experts repatriated from Laos.

The ceremony at the Dong Tam Martyrs’ Cemetery in Ba Thuoc district was also attended by representatives of the Lao province of Houaphanh, the Vietnamese Government, Military Region 4, the Ministry of Defence, the Ministry of Labour, Invalids and Social Affairs, and local residents.

In his speech, Vice Chairman of the Thanh Hoa People’s Committee Pham Dang Quyen expressed his gratitude to the heroic martyrs, who laid down their lives during national liberation wars and international missions in Laos.

He also thanked authorities, armed forces and people of Laos, especially those in Houaphanh province, for their wholehearted support to the repatriation of martyr remains.

HCM City wants to increase trade value with Myanmar

HCM City wants to increase the two-way trade value with Myanmar, said Secretary of the city’s Party Committee Nguyen Thien Nhan at his meeting with Mahn Win Khaing Than, Speaker of Myanmar’s House of Nationalities and Parliament, on May 11.

Speaking at the meeting, Nhan spoke highly of the traditional relations between Vietnam, including HCM City, and Myanmar, and the two sides’ similarities in culture and religion. He underlined that trade ties between the two countries have made progress for the benefit of their people.

The secretary noted that the city annually held a trade fair in Myanmar’s capital city Yangon while many tour operators from Myanmar joined the city’s tourism fairs.

He thanked Myanmar for facilitating Vietnamese businesses’ operation in the country and reiterated that HCM City looks forward to enhancing cooperation with Myanmar with the emphasis on promoting trade and investment and raising trade value.

For his part, Mahn Win Khaing Than lauded the robust development of HCM City, saying that Myanmar looks to learn from Vietnam’s experience in national protection and building.

The Myanmar top legislator expressed his gratitude towards HCM City for sharing its experience in socio-economic development, particularly in education, describing it as important to help Myanmar improve human resources quality.

Vietnam wants to partner with Thailand in climate change response

National Assembly Vice Chairwoman Tong Thi Phong said she wants Thailand to work with Vietnam in climate change response during a reception for Vice President of the National Legislative Assembly of Thailand Peerasak Porjit in Ho Chi Minh City on May 11.

Phong hailed the contributions of the Thai legislature’s delegation to the success of the Inter-Parliamentary Union (IPU) Asia-Pacific conference on climate change response and actions of lawmakers to realise sustainable development goals, adding that the event is meant to materialise the IPU’s Hanoi Declaration 2015. 

Mentioning the Mekong River Commission’s role in coordinating and regulating the use of water resources in the Mekong River, Phong hoped that Thailand would make positive contributions in this regard. 

According to Phong, the Mekong Delta is hard hit by saline intrusion due to falling Mekong River water flows to the region – a consequence of climate change.

About bilateral ties, she said Vietnam highly values Thailand’s role in ASEAN. 

The host lauded Thailand as one of Vietnam’s leading partners in ASEAN, especially in fisheries. The Thai legislature and government also provide support for Vietnamese nationals in the country, she said.  

Porjit, for his part, expressed his delight at the effective and close bilateral partnership in diverse areas since the establishment of diplomatic ties 40 years ago. 

He thanked the Vietnamese NA for joint work in fisheries, and dealing with issues related to fishermen and overseas Vietnamese. 

The guest believed that the two legislative bodies would discuss more issues of shared concern to further expand Thailand-Vietnam links.

Vietnamese spend US$1.38bn a year on cigarettes

The Vietnamese population spends a total of VND31 trillion (US$1.38 billion) a year on cigarettes, according to statistics released by Vietnam’s Ministry of Health.

A further VND23 trillion (US$1.03 billion) a year is spent on the cost of treatment for five groups of diseases closely linked to smoking, as well as economic losses due to premature death and loss of labor caused by these diseases, the ministry said.

The statistics were released in a letter issued by Minister of Health Nguyen Thi Kim Tien calling on provincial and municipal administrations to inform citizens of the increasing dangers of smoking in preparation for National Non-Smoking Week to commence later this month.

Smoking is linked to various diseases, the minister wrote, most commonly lung cancer, upper respiratory tract and gastrointestinal cancer, stroke, and chronic obstructive pulmonary disease.

At Vietnam National Cancer Hospital (K Hospital) in Hanoi, 97% of lung cancer patients are regular smokers, Minister Tien acknowledged.

Vietnamese laws prohibit smoking in covered public areas, train stations, and airports, though the regulation is often neglected and violators are rarely fined.

The country also strictly forbids the advertising and sale promotion of cigarettes, and requires cigarette companies to print graphic images illustrating the harmful effects of smoking on their packages.

International seminar spotlights cross-border road transport

It is necessary to clear obstacles that have been hindering cross-border road transport, participating firms agreed at an international seminar on border transport between Vietnam, China and other members of the Greater Mekong Sub-region (GMS).

The function was organised by the Vietnam Logistics Business Association (VLA) in Hanoi on May 11.

VLA Chairman Le Duy Hiep said cross-border road transport is important to import and export activities among GMS countries (Cambodia, China, Laos, Myanmar, Thailand, and Vietnam).

It will help add more value to goods traded, raise competitive capacity and boost border trade, he noted, naming such transit routes formed as the Vietnam-Laos-Thailand, Shenzen (China)-Vietnam-Laos-Thailand and Vietnam-Cambodia routes.

He also shared his view on difficulties facing transport agencies, like increasing transport prices due to underdeveloped East-West economic corridor, complicated customs clearance, a lack of coordination among agencies, and inadequate infrastructure.

Phan Thi Thu Hien, Deputy General Director of the Vietnam Road Administration, said goods circulating among Vietnam, China, Laos, Cambodia and Thailand and from Vietnam to other countries are often via two Vietnam – China routes through the Huu Nghi and Lao Cai international border gates.

Despite increasing trade in the past three years, goods transport in the area has yet to have professional logistics services, Hien said.

She proposed the formation of a coalition of inland transporters for closer cooperation as well as the launch of negotiations for better services.

She also stressed the need for standardized border transport fees, the development of goods tracking applications, and the establishment of professional logistics centres.

Participants asked the Transport Ministry to expand the scale of current transport routes.

Representative of the General Department of Vietnam Customs Nguyen Xuan Kha said the agency is piloting transit services in Thailand, Malaysia and Singapore and will do it in Vietnam later this year.

Domestic steel consumption slows down in April     

Domestic steel consumption recorded a modest year-on-year rise of 2.7 per cent in April to some five million tonnes, according to the Viet Nam Steel Association (VSA).

Last month, the purchase of construction steel products dropped 14 per cent year-on-year to reach more than 635,000 tonnes. As of April 30, the inventory volume of construction steel stood at 720,000 tonnes, much higher than the previous month.

Consumption of steel pipes also saw a slight decrease of 5 per cent to some 158,000 tonnes, the association said.

According to VSA, 6.23 million tonnes of steel, worth US$3.18 billion, were shipped to Viet Nam until April 15, marking a yearly slump of 5 per cent in volume but an increase of 22 per cent in value.

The association attributed the drop in the quantity of imported steel to the positive impact of Viet Nam’s safeguard measures, which have resulted in local enterprises having to face less pressure from competition.

Earlier, the association predicted the local steel industry would likely enjoy 10-12 per cent growth this year.

With expected GDP growth of 6.2 per cent this year and the operation of 10 steel projects in 2017, the sector’s growth is expected to expand further, it said. 

HCM City hosts annual Thai products expo     

The annual expo of Thai products opened at the Saigon Exhibition and Convention Centre in HCM City’s District 7 on Thursday.

At Top Thai Brands, more than 150 companies are displaying internationally-known Thai products and services like home appliances, household products, automobile and motorcycle parts, food and beverages, cosmetics, health, beauty and spa products and education, tourism and food services.

The four-day expo will have two key segments -- networking between entrepreneurs of the two countries on the first two days and public visits in the next two.

Speaking at the opening ceremony, Le Ngoc Trung, a representative from the Ministry of Industry and Trade, said Thailand is Viet Nam’s top trading partner in ASEAN.

Last year their trade was worth US$12.5 billion, 8.9 per cent up from the previous year.

Thailand is the 10th biggest foreign investor in Viet Nam with $8.1 billion in more than 450 projects, Trung said.

The expo would help boost bilateral trade to US$20 billion by 2020 as targeted by the leaders of the two countries, he said.

Pitinun Samanvorawong, director of Thai Trade Centre in HCM City, said: “The event is one of the collaborative activities between Thailand and Viet Nam to strengthen co-operative relations, promote trade and investment and create a business platform for Thai and Vietnamese enterprises to expand their networks and develop strategic partnerships.”

Top Thai Brands, formerly known as the “Thailand Week” trade fair, has been organised by the centre for the last 15 years.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR