State-owned agriculture, forestry farm land needs stricter control

The management of land areas previously allocated to the State-run agriculture and forestry farms needs reviewing to avoid disputes and losses for the State, according to experts.

The land is currently used by agriculture companies, forestry companies, forest management units and other organisations, households and individuals.

In fact, a number of shortcomings have been exposed in the management and use of the land, such as in the implementation of procedures for lease, determination of land prices and collection of land use levy, and granting certificates of land-use rights and changing the land use purposes.

According to a report by the Ministry of Natural Resources and Environment, more than 60 percent of the State-owned agricultural and forest farms that had switched to company models did not follow procedures of land transfer with payment or land lease as per regulations in the Law of Land 2003.

These farms owned 88 percent of total land allocated to the State agricultural and forest farms nation-wide, the report said.

Many farms had not closely monitored the land use after transfer to companies or individuals so many areas of land were illegally converted to civil uses such as housing or service facilities, or even sold for high profits.

A typical case is twenty-seven constructions that were illegally built on forest land in Hanoi’s Soc Son district over the past two years. The work includes houses, villas and even an eco-tourism area with a swimming pool, stilt houses and concrete roads.

The main reason originated from a wrong perception that the farms were owned by the State and the managers were State-paid servants so land transfer did not need supervising and monitoring.

Many farms did not have funds for surveying and marking out land boundaries of the areas they are in charge while staff were either incompetent or lacked legal knowledge.

According to Nguyen Van Chien, former deputy director of Land Registration Department (The Land Management Administration), in order to perform the management of State farms well in the future, managers should first change the policies which were not suitable with the reality.

“It was necessary to sufficiently provide funds from State and local budgets for surveying and marking out land boundaries of agricultural and forestry farms to serve as a basis for State management tasks on other types of land,” Chien said.

Also, monitoring and inspection of law compliance to the land originating from agricultural and forestry farms should be enhanced to avoid incorrect land use, he said.

Over 30 years, transferring land of State-owned agriculture and forestry farms has made a significant contribution to socio-economic development in Tay Nguyen (Central Highlands) region.

The land management has been well performed in the province of Dak Lak for many years.

At present, the province has a total of 65 agriculture and forestry companies and forest management boards which were allocated more than 345,703 ha of land. 

Vice Chairman of the provincial People’s Committee Y Giang Gry Niê Knong said the province had made land measurement and drew cadastral maps for nearly 200,000ha of farmland.

The inspection works had discovered and handled violations by companies, organisations and households.

This year, the province had revoked 5,572ha from eight entities found violating land use regulations.

The close watch had helped reduce land disputes and complaints making contribution to security and social stability in the province.

Farm companies had focused on protecting and planting forests, and restructuring agricultural plant patterns suitable with local characteristics.

Along with the achievement of farm land management, the province has been facing a number of difficulties.

According to Bui Thanh Lam, director of the province’s Natural Resources and Environment Department, since 2004 the province had allocated land to communes for management but in fact the land use has not been effective enough.

At present, hundred thousands of hectares of land were misused in several communes.

“Large areas of land transferred caused pressures for communes in management and forest protection”, said Lam.

“Under the regulations, the heads of communes were responsible for land management and forest protection. But in fact, communes did not have enough human resource for the job”, Lam said.

“So, the allocated land was illegally encroached by local people,” he said.

Granting certificates of land use rights also faced obstacles.

In the province, there were 11 villages set up by local ethnic minorities and migrants who were allocated land of State farms.

After 14 years of improving the forest soils for agriculture production, they had stable lives but were not granted the certificates of land use rights due to legal regulations, Lam said.

Therefore the province wanted revisions to legal regulations to help effectively manage and use the land of former State-owned agriculture and forestry farms, Lam added.

Vietnam invests 432 million USD abroad in 2018

Vietnam’s total outbound investment in 2018 was estimated at 432 million USD, according to the General Statistics Office.

Among the figure, 376.2 million USD was poured into 149 new projects, while the remaining 56 million USD was pledged to existing projects.

A breakdown of sectors shows that the banking and financial sector received the largest share of Vietnamese investment with 105.8 million USD, equivalent to 24.5 percent of the total investment, followed by 82.9 million USD in retail, wholesale and vehicle repair.

The agricultural sector received 52.3 million USD (12.1 percent) and manufacturing 52.1 million USD (12 percent).

Among the 38 countries and territories where Vietnamese investors are present, Laos was the largest recipient with 81.5 million USD, followed by Australia and the United States, which received 55.5 million USD and 53 million USD, respectively.

Southern province attracts large-scale investment projects

The southern province of Ba Ria – Vung Tau last year attracted many large-scale investment projects, and it is noteworthy that the projects fell in the province’s orientations, according the provincial Department of Planning and Investment.

Prominent among the projects are those on the PP production and LPG storage of the Republic of Korea’s Hyosung group (1.2 billion USD) and the paper mill of the Marubeni (211 million USD). Besides foreign investors, the province also attracted capital from domestic groups.

Also last year, Ba Ria – Vung Tau issued licenses for 44 foreign projects and approved the capital increase for 14 others totaling nearly 2 billion USD. All in all, by the end of last year, the province was housing 351 foreign investment projects will a total capital of over 27.3 billion USD and 532 domestic ones whose combined capital topped 276 trillion VND.

Over the past years, the province has persisted in the policy of attracting foreign investment in a selective manner, which has yielded positive outcomes and helped the local economy develop in the way it opted.

From now to the year 2020, Ba Ria – Vung Tau will call for investment to the fields of logistics, tourism, support industry, high-tech agriculture, housing and urban development. As for this year, the province will promote investment to major projects such as the Nui Dinh tourism complex, the safari area, the urban area, the Cai Mep Ha logistics centre, the Bau Trung urban area, and tourism projects along the coast of Vung Tau, Long Hai and Con Dao island, among others.

EVN SPC to focus on bringing power to island communes in 2019

The Southern Power Corporation (EVN SPC) will continue focusing on developing major power projects in 2019 to serve southern island communes.

The firm plans to finish a project to build the 220kV transmission line to Phu Quoc island in Kien Giang province within the year.

The project, which was launched in late 2018, has a total length of nearly 81km, connecting the mainland of Kien Binh commune in Kien Luong district with Phu Quoc island.

According to EVN SPC Chairman and CEO Nguyen Van Hop, in 2019, the corporation will strive to put 574 power works into operation.

Last year, it invested over 7.4 trillion VND (318.2 million USD) in building and upgrading southern power networks, while repairing more than 834 other works at a total cost of over 1 trillion VND (43 million USD).

Hop added that the works have met the power demand for socio-economic development in 21 southern cities and provinces, especially major economic regions, while contributing to reducing power losses in the whole system.

Vietnam Airlines serves first foreign customers in 2019

A special welcome ceremony held for Flight VN36 from Frankfurt at Noi Bai airport in Hanoi on January 1 

The national flag carrier Vietnam Airlines served the first foreign customers in 2019 who came to Hanoi and Ho Chi Minh City on January 1.

The first group of foreign visitors arrived at Noi Bai airport in the capital at 6:45 am on Flight VN36 from Frankfurt (Germany) and later, at 7:35 am, another group arrived at Tan Son Nhat airport in the southern hub on Flight VN30, also from Frankfurt.

They arrived to warm welcome ceremonies hosted by leading officials of the two cities and representatives of the airline who described this as ushering in a new year full of bright prospects for the tourism and aviation industries of the two cities in particular and the whole country in general.

Speaking at the Hanoi ceremony, Deputy ECO of the Vietnam Airlines Trinh Ngoc Thanh said the carrier is proud to serve as a bridge connecting Vietnam and the rest of the world, as well as an “ambassador” of Vietnam’s tourism that helps popularize the country’s image to foreign friends. He also pledged better services to customers through the implementation of the airline’s long-term investment strategy and development.

Currently, Vietnam Airlines is operating 54 direct routes connecting Vietnam and 29 destinations in Europe, Australia, Northeast Asia and Southeast Asia. For this year, it will explore the possibility of opening new routes to other destinations in Asia such as Ho Chi Minh City – Beijing, Da Nang – Busan (Republic of Korea), and Da Nang – Singapore. At the same time, the carrier will also improve the quality of services on a number of international routes by intensifying the utilization of the large-body fleet of Airbus A350 and Boeing 787-9 aircraft.

Long An maintains top position in FDI attraction in Mekong Delta

The Mekong Delta province of Long An last year issued licenses to 90 new foreign direct investment (FDI) projects with a combined capital of 450 million USD, thus maintaining its leading position in FDI attraction in the region, according to local authorities.

Statistics also show that the number of the FDI projects in the province last year rose to nearly 1,000, with investment capital totaling more than 6 billion USD. Of this, 576 projects with a combined capital of over 3.6 billion USD are now operational.

As for domestic investment attraction, Long An issued licenses to 191 projects with a total capital of 23.5 trillion VND (over 1 billion USD) in the period under review, bringing the number of the investment projects of this kind to more than 1,600 and their combined capital to 184 trillion VND.

Local authorities said the projects are mainly located in industrial complexes, and stated that they will maintain the policy of selective investment attraction in the time to come, with a focus on the tempo of implementation.

Besides, they will also pay attention to the measures aimed at improving the investment and business environment as well as raising the national competitiveness so as to create the best conditions for investors and to encourage the application of new technologies.

Furthermore, the province will continue improving the quality of its administrative reform and pushing up investment promotion activities in a number of countries and territories with developed industries, especially FDI projects with large scale and modern technology that use the land fund in an effective manner.

Manufacturing, processing contribute to economic growth

Manufacturing and processing were the major contributor to Vietnam’s gross domestic product (GDP) growth of 7.08 percent in 2018, the highest level in 11 years, according to the General Statistics Office (GSO). 

The sector posted an increase of 12.98 percent, much higher than the annual rates from 2012 to 2016. 

The agro-forestry-fisheries sector grew by 3.76 percent, industry-construction 8.85 percent and services 7.03 percent. 

GSO Director General Nguyen Bich Lam said the result showed the economy has escaped its reliance on the exploitation of mineral and natural resources, given that 2018 marked the third consecutive year that mining contracted, down 3.11 percent. 

To maintain the momentum for manufacturing and processing, Lam suggested attracting foreign direct investment, especially from investors boasting modern technology, governance and high competitiveness while strengthening ties between foreign-invested and domestic firms, particularly those in manufacturing and processing. 

The GSO reported that industrial production increased by 10 percent annually in 2018. 

Several industries boasted higher manufacturing output, including coke (fuel) and refined petrol up 65 percent, metallurgy up 25 percent, medicine and pharmaceuticals up 20 percent, motorised vehicle manufacturing up 16 percent and paper production up 14 percent. 

Some sectors reported lower growth such as rubber and plastics up by only 3.3 percent and waste collection and treatment up 3 percent.

More support needed to optimise Can Tho int’l airport

More favourable policies and support are expected to help promote the use of Can Tho International Airport – a port of entry of Can Tho city and the whole Mekong Delta region.

The airport served more than 830,000 passengers in 2018, a figure predicted to hit 1.1 million in 2020. Passenger numbers have grown by an average of 25 percent each year since 2015.

The number of passengers transported via this airport is likely to reach 2.6 million and 3.3 million passengers by 2025 and 2030, respectively, according to the Civil Aviation Authority of Vietnam (CAAV).

At a recent meeting between the Ministry of Transport and Can Tho authorities, the CAAV said various foreign airlines are planning to open flights to the city, noting that a Thai carrier will launch its first flight to the Can Tho airport in March 2019. Some Chinese and Korean airlines are also eyeing the Can Tho market.

However, since it was put into operation in January 2011, the Can Tho International Airport has yet to meet the Transport Ministry’s expectations, said CAAV Director Dinh Viet Thang.

He pointed to the unstable flow of passengers and a lack of policies encouraging airlines to operate flights to the airport.

Thang said the CAAV will propose the Transport Ministry issue mechanisms and policies to reduce fees to attract more airlines. He also called on local authorities to provide more incentives for carriers.

At the meeting, Minister of Transport Nguyen Van The asked the Vietnam Airlines Corporation and the CAAV to promote flights linking domestic and international destinations with the Can Tho International Airport. He also requested the municipal administration issue support policies so the airport can aid the development of Can Tho and the Mekong Delta.

CPTPP provides driver of institutional reform

The CPTPP, which officially came into force on December 30, 2018, is expected to provide a push for Vietnam to reform its economic institutions and further improve the business climate to optimize opportunities brought by the deal.

Experts said the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will give Vietnam better access to the nine large markets in the Asia-Pacific, thus helping the country diversify its import-export markets.

Moreover, the lifting of more than 90 percent of import tariffs in CPTPP member markets immediately after the deal took effect will open up opportunities for Vietnamese goods to enter new markets.

Ngo Tuan Anh from the Economics Department, the National Economics University, said the Asia-Pacific region accounts for 70 percent of Vietnam’s total export revenue and 80 percent of import value. When tariffs are cut, Vietnam can increase the export of its key products such as textile-garment and footwear without competition from other countries.

Statistics showed in Vietnam’s trade with CPTPP member economies, garment-textile generated the biggest export earnings at more than 3.1 billion USD in 2017, followed by transport vehicles with over 2.17 billion USD, machinery and equipment with nearly 1.72 billion USD, seafood with 1.3 billion USD and wood products with over 1 billion USD.

However, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc took a cautious approach, citing the lessons of previous free trade agreements. He noted that despite optimistic forecast, several FTAs have brought only modest benefits for Vietnam. According to Loc, the country has made use of just about 40 percent of benefits generated by preferential tariffs, and most of which went foreign investors in the country.

Therefore, economists emphasised the importance of stronger measures to reform economic institutions and further improve the business environment, so as to better make use of opportunities.

Deputy Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade) Ngo Chung Khanh said Vietnam needs to revise many regulations on trade, customs, labour and intellectual property in order to properly enforce the CPTPP and make the best use of the deal.

“We will have to revise at least seven laws along with dozens of decrees and sub-law documents to bring our legal framework closer to international standards,” Khanh said.

According to him, commitments under the CPTPP will generate positive effects on the domestic investment environment.

Nguyen Toan Thang from the Hanoi Law University agreed, saying that the deal will put Vietnam in a better position to attract foreign investment from other members, especially those with which Vietnam has yet to sign a bilateral FTA such as Canada and Mexico.

Ngo Tuan Anh noted that there is a big gap between CPTPP’s requirements and Vietnam’s real capacity, which forces Vietnam to make effort to meet the requirements. Without strong enough reform, the country will face great risks, he said.

The CPTPP was signed by 11 member states, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam in March 2018.

It is one of the most comprehensive trade deals ever concluded and strips 98 percent of tariffs for the 11 countries with a combined GDP of more than 13.5 trillion USD and close to 500 million consumers.

 It is expected to promote economic growth and poverty reduction, create more jobs and improve the living condition for the people at member nations.

Vietnam strives to enter ASEAN’s top four in terms of competitiveness

Vietnam aims to rank among four leading countries in the Association of Southeast Asian Nations (ASEAN) in terms of business environment and national competitiveness.

Chairing the Government’s recent regular meeting to discuss the building of a draft resolution on improving the business environment and national competitiveness, Prime Minister Nguyen Xuan Phuc stressed that the draft Resolution, which is expected to numbered No. 02, places priority on four key areas: simplifying procedures for doing business; continuing reforms in management, specialised inspections and connecting the national single window; boosting e-payments and providing online level-4 public services; and developing innovation ecosystem and encouraging startups.

According to economists, the Government has made drastic efforts in renewing institutions and ameliorating the business and investment climate, helping the country move 21 steps in the business index tracked by the World Bank from 2015. Performances of some criteria such as logistic services, innovation, e-Government and access to e-public services saw strong improvements. 

However, economist Pham Chi Lan said that although there is a significant growth in the number of newly-established enterprises (120,000 firms), the year 2018 witnessed a record high of businesses halting operations. It was estimated that if ten firms started their business, seven others shut down.

This means the companies, particularly small and medium-sized enterprises, were under intense pressure, she added.

Bottlenecks in business conditions and mechanisms as well as irrational tax lines have hindered businesses’ growth, according to Director of the Central Institute of Economic and Management (CIEM) Nguyen Dinh Cung.

“We have reformed strongly in recent years. However, the world is moving faster and there is a competition race among countries across the five continents towards improving the business climate and national competitiveness”, Cung said.

Economists and the business community believed that if reforms in 2018 still lagged behind expectations, the Government needs to double or triple its efforts in the future.

HCM City posts 7.8% growth in overseas shipments

Businesses based in Ho Chi Minh City recorded a year-on-year increase of 7.8% in their export revenue this year to reach US$38.32 billion, according to the municipal Department of Industry and Trade.

Excluding crude oil, the figure stands at around US$36.1 billion, up 11.1%, the department said at a meeting on December 27.

Meanwhile, about US$47.33 billion worth of commodities were imported by local firms in 2018, up 9.3%.

Huynh Van Hanh, Vice Chairman of the Handicraft and Wood Industry Association of HCM City, said some opportunities and challenges have appeared in 2018 as a result of free trade agreements (FTAs) and the US-China trade war.

He urged ministries and sectors to coordinate closely in controlling product origin, especially the goods temporarily imported for re-export, making market forecasts, providing information for businesses in a timely manner, and ensuring the market transparency so that other countries cannot take advantage of Vietnam to falsify their products’ origin.

Meanwhile, business associations in HCM City asked the Industry and Trade Department to further assist local companies to promote trade and seek partners in markets in Asia, Europe and the US.

In the context of Vietnam’s intensive economic integration, it is important to capitalise on incentives under FTAs, they said, calling on authorities and business associations to provide more training and information to help firms fully aware of opportunities and challenges created by FTAs.

Customs sector collects over VND309.8 trillion of taxes this year

The customs sector has collected more than VND309.8 trillion worth of taxes by the end of December 26, up 7.2% compared to last year’s corresponding period, according to the General Department of Vietnam Customs.

During the period from December 1-26, the total import-export tax revenue of the customs sector reached in excess of VND24 trillion.

These triumphs were attributed to the effective implementation of the decree by the Director of the General Department of Vietnam Customs and drastic solutions for simplifying administrative formalities to facilitate import-export activities.

The customs sector’s efforts have contributed to bringing Vietnam’s total import-export value this year to an estimated US$482.23 billion, up 12.6% over last year, a significant increase. 

Vietnam also enjoyed a trade surplus of US$7.21 billion this year, a whopping US$5.1 billion higher than the figure registered last year.

Vietnamese airports forecasted to serve 112 million passengers in 2019

Vietnamese airports have been forecasted to receive 112 million passengers 2019, up 8.2% on-year.

According to Airports Corporation of Vietnam (ACV), in 2018, local airports welcomed 104 million passengers, up 10.4% on-year.   

The Vietnamese aviation transportation sector has been predicted to top the group of countries with more than 50 million passengers per year in the 2016-2040 period. The growth has continued as more domestic and international flights have been launched.

ACV has planned to boost investment and upgrade of airport infrastructure in the coming time, focusing on major hubs such as Long Thanh International Airport in Dong Nai Province.

Noi Bai, Tan Son Nhat, Danang, Cam Ranh, Cat Bi, Vinh and Phu Bai airports are all expanding capacity. AVC has prepared the construction of Terminal 3 at Tan Son Nhat International Airport along with international terminals at Danang and Cam Ranh airports.

Airport Operations Control Centres at Noi Bai, Tan Son Nhat, Danang and Cam Ranh will be set up.

HCM City’s industrial production grows 8.15 percent this year     

HCM City sustained its industrial expansion in 2018, recording an estimated 8.15 per cent rise in the Index of Industrial Production (IIP) from last year.

The municipal Department of Industry and Trade released the figure at a meeting on December 27, noting the IIP growth rate met the target of 8 to 8.5 per cent set for this year.

The city aims for an IIP pace of 8 to 8.2 per cent for 2019, with the four key industries (mechanics; food processing; chemicals, plastics and rubber; and electronics and information technology) targeting a rate of 8.2 to 8.4 per cent.

Meanwhile, goods retail sales and services revenue surpassed VND1.04 quadrillion (US$44.72 billion) this year, up 13.2 percent from the previous year. HCM City is looking to raise this figure by 12 per cent in 2019 and to boost the total goods retail sales and services revenue to nearly VND1.12 quadrillion by 2020.

To that end, the Industry and Trade Department will work more closely with local business associations and relevant agencies to build co-operation plans for 2019 and 2020. It will advise authorities about how to support key industrial products that drive growth.

The department will focus on solutions relating to space for business and production activities, capital access, science and technology, workforce training, trade promotion and brand building, according to department Director Pham Thanh Kien.

Regarding the development of the wholesale and retail markets, the department will push on with the supply-demand connection programmes between the city and other localities. Conditions will be improved for local enterprises to expand their production and distribution activities.

The programme to ensure stable prices and supply-demand balance will also continue, while businesses will be encouraged to improve product quality. 

EVN Southern Power Corp increases investment in key provinces

The Electricity of Vietnam’s Southern Power Corporation (EVNSPC) has reported that it increased investment in key southern provinces of Binh Duong, Dong Nai, Long An, Tay Ninh and Ba Ria-Vung Tau for industrial development in 2018.

Specifically, the EVNSPC supplied power to over 4,500 households in Bac Lieu, Dong Thap, Vinh Long, An Giang, Tra Vinh, Binh Thuan, Binh Phuoc, Hau Giang, Ca Mau, Ninh Thuan and Lam Dong provinces with a total investment of nearly VND170 billion (US$7.3 million). 

At the same time, it also completed power supply to 113 communes in 21 cities and provinces. In Tien Giang, electricity was brought to 22 new-style rural communes with a total investment of around VND150 billion. 

Up to 150 water pumping stations and aquaculture farms in Ca Mau, Dong Thap, Ninh Thuan, Lam Dong, Ba Ria – Vung Tau, Ben Tre, Tien Giang, Tay Ninh and Long An provinces received power at a total cost of roughly VND200 billion. 

In island communes of Hon Thom and Tien Hai in the southern province of Kien Giang, the EVNSPC provided electricity for more than 1,420 households, which cost VND193 billion. 

This year, the corporation is estimated to earn a revenue of VND7.47 trillion (US$324.7 million) out of the VND8.3 trillion, or 90% of the plan. 

In particular, the 220KV Sa Dec and Can Duoc power stations were electrified, contributing to the supply in the region. Construction on a 220KV power line linking Kien Binh and Phu Quoc is also underway. 

Among the 82 110KV electrification works, 273km of power lines were built and 467km upgraded with an additional capacity of 1,380MVA, contributing to meeting the power demand for economic development in the 21 southern cities and provinces, particularly in key economic zones. 

The EVNSPC repaired 834 facilities with over VND1 trillion, meeting all targets. 

In 2019, the corporation will continue improving the efficiency of power networks and consumer services, installing more gauges, and collecting electricity bill payment via banks and independent service organisations.

It will also complete the construction of power works, put into operation 574 others, and connect Kien Binh – Phu Quoc line to the national grid.

Businesswoman lays ground for network of Vietnamese female entrepreneurs in Singapore

Nancy Nguyen is one of the founders of NetViet Group, which specializes in logistics and real estate, and is in charge of human resources and trade development for the Fullion Group’s Asia region.

Over the past 5 years, Nancy has given hundreds of Vietnamese youth in Singapore free training on starting a business, and developing a trademark. Many of them have joined Nancy in creating a network of Vietnamese enterpreuners in Singapore. 

When Nancy Nguyen first came to Singapore 5 years ago, culture shock and a language barrier made it difficult for her to communicate with people. This led her to get involved in helping young Vietnamese in Singapore start businesses. Nancy encourages them to preserve Vietnamese character so that Singaporeans will have a positive view of Vietnamese people.

“Many Vietnamese have tried to promote Vietnamese culture in Singapore. They wear traditional Vietnamese clothes and eat traditional Vietnamese food on special occasions,” Nancy said.  

As Chairwoman of Happy Women Singapore, Nancy helps the group’s members expand their businesses.

“I help Vietnamese female enterpreneurs start businesses and contribute to the community. I encourage them to look to Vietnam, an open market with a larger population than Singapore, and they can contribute to the homeland,” she said.

Nancy said trust and responsibility are the keys to business success. Her organization allows women to share experience and help others achieve success. Vicky Truong has collaborated with Nancy Nguyen in community work.

“Nancy Nguyen is the founder of NetViet, a non-profit organization. She has lots of work and life experience. She is an exemplary leader who is enthusiastic and willing to help others,” Truong said.

Ngo Thi Hong Hoa, who has lived and worked in Singapore for more than 10 years, said: “I am the owner of a hair salon. My business is supported by my son who was trained by Nancy Nguyen.”

Grab eyes stake in Vinasun, taxi company refuses to play ball

Grab’s surprise offer to buy a US$2.78-million stake in top taxi company Vinasun has failed, with the latter asking to end negotiations.

The negotiations between the two firms began earlier this month for compensation claimed by Vinasun from the Malaysian ride-hailing firm after the People’s Court of Ho Chi Minh City yet again adjourned hearing of a suit Vinasun had filed last year.

A Vinasun spokesperson told the court following the latest resumption of the trial Wednesday that his firm had declined the offer since Grab had not made an appropriate offer.

"We don’t want to continue the negotiations."

But Grab does not want the lawsuit to continue.

Its spokesperson said, "We have become very tired during the 17 months of this trial for damages we did not cause. We do not want Vinasun to waste its time on this meaningless lawsuit. We consider the proposal to buy Vinasun’s stake an investment activity, and we expect to cooperate with Vinasun to end the case in a good way."

Vinasun filed the suit against Grab in June last year, accusing it of abusing the Ministry of Transport’s pilot scheme and committing violations. 

It said Grab's illegal activities were responsible for nearly VND42 billion (nearly US$1.8 million) of the VND76 billion (US$3.25 million) worth of losses it had suffered in 2016 and the first half of 2017.

The trial began last February, but was adjourned a month later to allow for more evidence to be gathered. Grab had protested against the value of Vinasun's losses.

Last October prosecutors asked the court to accept Vinasun’s petition for compensation of nearly VND42 billion, rejecting Grab’s claim it was a tech firm and not a taxi company.

Grab responded by writing to Prime Minister Nguyen Xuan Phuc to say that identifying it as a taxi firm would be "a step backward from Industry 4.0."

The latest draft of a transport ministry decree requires firms offering taxi services to register as taxi firms before they can apply ride-hailing technologies. 

This means that Grab and other ride-hailing firms have to register afresh as taxi businesses and comply with legal requirements related to operating licenses, drivers’ profiles and taxes.

Forestry industry enjoys yearly trade surplus of nearly US$7 billion

The forestry industry has achieved a trade surplus of close to US$7 billion this year, accounting for 85% of the sector’s trade surplus, according to the Vietnam Administration of Forestry under the Ministry of Agriculture and Rural Development (MARD).

forestry industry enjoys yearly trade surplus of nearly us$7 billion hinh 0 The Vietnam Administration of Forestry reported that the nation’s export value of wood and forestry products throughout 2018 reached over US$9.3 billion, an on-year increase of 15.9%, making up 23% of the export value of all industries in the agricultural sector.

Key export markets for the forestry industry include the US, Japan, the EU, China and the Republic of Korea, which account for 87% of the export turnover of the forestry industry.

This year's volume of exploited wood reached a total of 27.5 million cubic metres, up 3% from last year. 

Notably for the future, after undergoing six years of negotiation, Vietnam and the EU have officially signed the Forest Law Enforcement, Governance and Trade Voluntary Partnership Agreement (FLEGT-VPA), opening up a wealth of opportunities for Vietnam’s wood exports to the EU and other nations across the globe.

Nguyen Xuan Cuong, the Minister of Agriculture and Rural Development,requested the relevant units promote the advantages enjoyed in 2018 into the next year and set a goal of increasing the forest coverage rate to 42% ahead of schedule by 2020.

Minister Cuong noted that as the forestry sector can provide 80% of wood material sources for processing and export, the rate of trade surplus has maintained a high level, accounting for 85% of the sector’s export value.

In 2019, the forestry sector will plant 222,000 hectares of forest, covering 41.85% of the coverage rate, and increase the production value from 5.5% to 6%, while wood exports are expected to hit US$10.5 billion.

Mercedes-Benz Vietnam to recall 4,802 SUVs over faulty seatbelts

Mercedes-Benz Vietnam is expected to issue a recall notice for 4,802 vehicles due to seatbelt faults in their rear seats.

Company representatives said that an application for the recall has been submitted and they are waiting for approval from the Vietnam Register, the vehicle registration, inspection and quality control department of the Ministry of Transport.

The models affected by this recall are the popular GLC 200, GLC 250 4MATIC, and GLC 300 4MATIC.

These models were assembled at the Mercedes factory in HCM City between March 2016 and February 2018, and sold mainly to Vietnamese consumers.
 
It is expected that owners of the faulty SUVs can have their vehicles checked and repaired free of charge at Mercedes Vietnam dealers nationwide from Jan 15, 2019 till the end of 2023.

For the left and right rear seats, the seatbelt retracts so much that its locking clip can be stuck in a crevice in the inner car plating. If this happens, the clip cannot be retrieved and used again.

Mercedes GLC is one of the models distributed in the Vietnamese market by the German luxury manufacturer.

In 2017, GLC was the best-selling model for the company as well as the entire luxury car market, priced at VND1.68-VND2.9 billion (US$72,032 – US$124,032).

Thai Binh’s industrial complexes lack wastewater treatment systems

Only two of 28 industrial complexes in the northern province of Thai Binh have wastewater treatment systems, according to the provincial Department of Natural Resources and Environment.

There are 51 companies in Phong Phu Industrial Complex in Thai Binh city but only 38 of them have wastewater collected and treated at the wastewater treatment plant located in Nguyen Duc Canh Industrial Zone.

The other wastewater treatment system is for Thai Phuong Trade Village Industrial Complex in Hung Ha district. The system was designed in 2013 to deal with 800cu.m of wastewater per day, however it has not been operational yet because the rules for the system operation have not been completed.

This means almost all producers, traders and service providers in industrial complexes in the province discharge and treat wastewater by themselves.

Some have speculated that they hesitate to release wastewater into concentrated wastewater treatment systems to avoid calculating the volume of discharge, which is used to determine environmental taxes.

Meanwhile, since 2014, the People’s Committee of Thai Binh province has offered incentives to attract investors to wastewater treatment projects in industrial complexes and zones.

The province offers to pay for half of the cost of such projects, to a maximum of VND17 billion (US$737,000), depending on the size of the facility.

Investors who get loans for the investment will be assisted 50% of interest rate for two years but the assistance must be less than VND3 billion.

According to provincial Department of Natural Resources and Environment, it recommended districts, Thai Binh city and the provincial People’s Committee offer more incentives to attract investors.

The province plans to have 50 industrial complexes by 2020.