Car sales surge 23 percent in November

Vietnam’s car sales rose by 23 percent year on year in November to 30,540 units, according to a report by the Vietnam Automobile Manufacturers’ Association.

The report showed that January-November sales reached 253,957 units, with giants such as Toyota, Truong Hai Auto Corporation (Thaco), Ford and Honda claiming the majority of market share.

Domestic automaker Thaco now leads car sales in Vietnam with 88,181 units sold in the first 11 months, up 9 percent compared with the same period last year, of which Thaco Kia and Mazda reached 25,970 units and 29,871 units, increasing 30 percent and 29 percent, respectively. Sales of Thaco trucks were down 24 percent at 26,432 units.

Toyota Motor Vietnam sold 56,864 units, up 6 percent compared to the same period last year. Honda Vietnam overtook Ford to take third spot with 23,994 sales, up 109 percent. Meanwhile, Ford sold 20,677 units, falling 21 percent.

Manufacturers such as Lexus, Mercedes-Benz Vietnam, GM Vietnam, Isuzu, VEAM, Vinamotor and SAMCO all lost ground.

The decline of GM Vietnam is likely due to the sale of its factory in Hanoi to Vingroup. The transfer of GM Vietnam’s operations, including the factory, an authorised dealer network and staffing, is expected to be completed by the year-end.

Luxury brands Mercedes-Benz Vietnam and Lexus reported sales of 5,504 and 390 vehicles, down 12 percent and 52 percent, respectively. Increased taxes on luxury cars have been blamed for the demise in recent years.

According to VAMA statistics, the best-selling cars in the first 11 months of this year were the Toyota Vios, Innova E, Kia Morning, Kia Cerato, Mazda 3, Honda CR-V and Honda City.

Experts make proposals towards sustainable agricultural production

A variety of measures to help the Mekong Delta region better respond to climate change and achieve sustainable agricultural production were proposed at a seminar on December 20 in Long An province, part of the third Vietnam Rice Festival.

At an event discussing salt intrusion and drought in the region, delegates also focused on analysing the impacts of climate change on the region’s agricultural production, especially in the rice sector.

Associate Prof. Dr. Pham Dang Tri from Can Tho University stated that climate change has been posing negative impacts on the development of the Mekong Delta. Specifically, the agricultural production output has been reduced due to sea-levels rising; a lack of alluvium, mud, and sand; and high risks of salt intrusion and floods.

Therefore, it is necessary to carry out a sustainable adaptation strategy through the combination of construction and non-construction solutions, Tri stressed.

Sharing the same view, Associate Prof. Dr. Nguyen Van Sanh, also from Can Tho University, said that farmers, enterprises, and managers should be truly ‘smart’ in production and business.

He suggested analysing market factors thoroughly, choosing suitable rice varieties, intensifying regional connectivity, improving production technologies, saving water during production, applying green technology, and reducing greenhouse gas emissions.

Scientists and enterprises also emphasised the need to choose rice varieties that are tolerant towards saline water, and replace more toxic fertilisers with organic fertilisers.

Dinh Thi Phuong Khanh, deputy head of the Long An provincial Department of Agriculture and Rural Development, affirmed that the ideas and recommendations made at the seminar will help state management offices to issue appropriate policies and mechanisms to develop agriculture sustainably, thus helping enterprises and farmers define their direction in agricultural production as adaptive to climate change. 

Processors gain right to label “Binh Phuoc” cashew products

Four cashew processors have been given the right to use the geographical indication (GI) of “Binh Phuoc” for their cashew products, in a move to help them prove the legitimacy of their products originating from the southern cashew hub of Vietnam.

The Binh Phuoc provincial Department of Science and Technology said it granted the certificates to the businesses on December 17. 

The approved “Binh Phuoc” firms consist of Son Thanh Production-Trading-Import-Export JSC based in Dong Xoai city; Ha My JSC in Dong Phu district; My Le Co., Ltd., in Phu Rieng district; and Hoang Phu Production Co., Ltd., in Loc Ninh district.

In March this year, the National Office of Intellectual Property issued the GI certificate on Binh Phuoc cashew nuts for the province.

Binh Phuoc, considered the “cashew capital” of Vietnam, has over 150,000ha of cashew farming, accounting for 50 percent of the country’s total cashew area.

It is currently home to over 200 cashew businesses and 400 cashew processing facilities. Local cashew products have been exported to 25 countries and territories.

Over 11.7 trillion VND worth of G-bonds raised

The State Treasury of Vietnam has raised more than 11.7 trillion VND (509.1 million USD) from government bonds (G-bonds) during a recent auction at the Hanoi Stock Exchange (HNX).

According to the HNX, the auction offered 10 trillion VND worth of G-bonds with 10-year and 15-year maturities. 

Specifically, 10-year bonds mobilised 5 trillion VND at an annual interest rate of 5.1 percent, equaling that of the previous auction on December 12. 

Two bidders bought 10-year bonds worth 1.5 trillion VND, with a yield rate of 5.1 percent per year at the sub-session sale. 

Meanwhile, 15-year bonds were purchased with a total value of 4.7 trillion VND and an interest rate of 5.3 percent, equal to that of the December 12 auction. 

As many as 500 billion VND was also raised for 15-year bonds at the sub-session, with a yield rate of 5.3 percent. 

Since early this year, the State Treasury of Vietnam has collected nearly 161.5 trillion VND from auctions through the HNX.

First insurance technology service launched in Vietnam

INSO Vietnam Joint Stock Company on December 19 officially introduced its insurance technology service named INSO – the first of its kind in the country.

A totally automated insurance application for mobile phones, INSO allows customers to choose insurance packages based on their requirements and evaluate assets themselves. An electronic insurance certificate is then immediately sent to the customer’s email.

Indemnity processes will be automatically implemented following available formula, thus reducing procedures for customers. The time needed to file a claim will be shortened to just 15 minutes.

In addition, customers can see their insurance history to protect their health and assets as well as enjoy lower insurance fees for the upcoming years.

INSO uses advanced technologies such as OCR, computer vision and deep learning to quickly resolve insurance applications.

In addition to traditional insurance products including automobile insurance, health insurance, home insurance and asset insurance, INSO also provides totally new products such as flight delay insurance, love insurance and shipping insurance.

The app is available on both Android and IOS.

Vietnamese BOPP films get anti-dumping tax for five more years

The Indonesian Anti-Dumping Committee (KADI) has officially issued its final conclusion on the sunset review of the anti-dumping taxes levied on Biaxially Oriented Polypropylene (BOPP) film imports from Thailand and Vietnam.

Accordingly, KADI decided to continue applying the anti-dumping tax level of 3.9 percent on the products from Vietnam for an additional five-year period.

According to the Department of Trade Defence under the Ministry of Industry and Trade of Vietnam, the products subject to these investigations are BOPP films imported from Vietnam and Thailand, coded HS 3920.20.10, 3920.20.99 and 3920.20.91.

Earlier, KADI initiated an anti-dumping investigation into Vietnamese BOPP films in 2015. On December 12, 2017, KADI conducted the sunset review to decide whether it would continue anti-dumping measures or not. 

Vietnamese farmers and businesses are worrying as pepper export revenue is expected to drop to under 1 billion USD in 2018 for the first time after four years despite strong increases in shipments.  

Vietnam has held the position as the world’s biggest pepper exporter for 18 years, selling its pepper to more than 100 countries and territories worldwide. Shipment volume increased from 50,000 tonnes in 2001 to over 200,000 tonnes at present, making up more than 60 percent of the total pepper trade volume globally.

Export revenue from the product surpassed 1 billion USD for four consecutive years: 1.2 billion USD in 2014, 1.26 billion USD in 2015, 1.42 billion USD in 2016 and 1.12 billion USD in 2017.  

However, world pepper prices have been declining, resulting in falling revenues for Vietnam in spite of increases in shipments to most markets. 

Between January-November, Vietnam had shipped abroad some 220,000 tonnes of pepper for 718 million USD, up 8.9 percent in volume but down 32.5 percent in value year-on-year, the Ministry of Agriculture and Rural Development reported. 

The US, India and Pakistan remained Vietnam’s major pepper importers, with their market shares standing at 19.6 percent, 8.2 percent and 4.3 percent, respectively, the ministry said. Export volume to all the three markets showed remarkable increases, with 29.4 percent for India, 11.1 percent for the US and 21.9 percent for Pakistan.

Meanwhile, earnings from most markets contracted compared to last year, with the biggest reduction (57.5 percent) recorded in the United Arab Emirates (UAE).

In the 11-month period, Vietnamese pepper was sold at the price of about 3,264 USD per tonne, down 37.9 percent as compared with the same period last year. 

However, local farmers and businesses are hoping that the price will go up in the time ahead thanks to diminishing oversupply.  

According to the International Pepper Community (IPC), the world’s total pepper output in 2019 is expected to reach 492,200 tonnes, down from 523,400 tonnes in 2018. 

In Vietnam, prolonged torrential rains triggered floods that killed hundreds of hectares of pepper. 

Nevertheless, strong increases in global prices would not be possible as Brazil is entering a new harvest.

The Vietnam Pepper Association (VPA) said to raise pepper price, the only way is to improve product quality. 

During the 2018-2019 crop, Vietnam has about 100,000 hectares of pepper, with each ha producing about 2.47 tonnes, said Nguyen Mai Oanh, VPA Vice President and General Secretary. 

Local farmers have paid more attention to cultivation and production standards in order to produce clean products. As many as 20 big firms have invested in pepper processing plants using high technologies, with total capacity of 60,000 – 70,000 tonnes, which meet GMP or other international standards.

The Agro Processing and Market Development Authority suggested businesses join hands with farmers in order to create sustainable sources of materials and stop the abuse of pesticides and chemical fertilizers, thus helping regain the Vietnamese pepper sector’s position in the world market.

National Innovation Centre to fuel economic development

Minister of Planning and Investment Nguyen Chi Dung 

The establishment of the National Innovation Centre (NIC) will be a catalyst for promoting economic development based on science, technology, and innovation, Minister of Planning and Investment Nguyen Chi Dung said at a press conference in Hanoi on December 21.

He referred to successful models in China, the Republic of Korea, and Israel, which have attracted large tech firms worth billions of USD and created tens of thousands of high quality jobs.

The centre should have a good business environment and competitive policies, enabling companies to access human and capital resources, infrastructure, and markets, he said.

In Vietnam, the NIC will be located in the Red River Delta,  where the economic scale makes up over a quarter of the country’s gross domestic product (GDP).

The centre could become a place to promote the development of products and services for smart cities such as digital communications; video games; or cybersecurity applications for governmental agencies and companies, businesses, or individuals.

It is expected to provide support for startup businesses and transfer technologies to small- and medium-sized ones in addition to contributing capital to develop new technologies and piloting new regulations and policies on State management in the field.

This will be the first centre of its kind and part of the innovation centre network to be set up throughout the country in the future, focusing on specific fields of each locality’s strengths, Dung added.

Binh Thuan develops tourism into spearhead economic sector

The comprehensive development of transport infrastructure and improvement in tourism products are among the keys to turning tourism into a spearhead economic sector in the south-central coastal province of Binh Thuan, experts said.

Binh Thuan is also striving to become a national sea tourism-sports hub in the country by 2020. The locality has also set the annual target of welcoming some 7 million arrivals by the end of the decade, including around 850,000 foreign visitors. 

Attending a seminar held by the Vietnam Chamber of Commerce and Industry’s Binh Thuan province chapter and the Binh Thuan Tourism Association on December 21, Tran Du Lich – member of the Prime Minister’s Economic Advisory Group – laid stress on the local potential for tourism development.

He suggested the province work to lure investments in global standardised resorts, enhancing tourism promotion, and strengthening regional tourism connection.

Meanwhile, Chairman of the Vietnam Tourism Association Nguyen Huu Tho said that further effort is needed to ensure safety for travellers, prevent tourism scams or cheating, and develop local staple products.

Using social networks to popularise local culture and tourist attractions is highly recommended, he underlined, adding that the province should encourage businesses to focus on high-quality human resources training.

According to Nguyen Lan Ngoc – Vice Director of the provincial Department of Culture, Sports, and Tourism – the tourism sector will work to improve the business climate, complete tourism infrastructure, and build Binh Thuan as a safe, friendly destination for both domestic and foreign tourists.

Binh Thuan has a coastline of 192km, with various beautiful landscapes such as Mui Yen, Cau isle, Ke Ga lighthouse, Ganh Son, Gieng Tien, and the Hon Cau Marine Protected Area where hundreds of rare species live.

In addition, Binh Thuan boasts Phu Quy island which is known as “the pearl in the middle of the sea” and located about 56 nautical miles off the coast of the province. Meanwhile, Mui Ne beach, with its warm and windy climate, has served as a venue for well-known surfers from the UK, France, Russia, Germany, and Australia.

Thanks to efforts to improve the management work and diversify tourism products, the number of tourists heading to the locality has risen year after year. Sea sports, like windsurfing and kite-surfing, and adventure tours have helped lengthen tourists’ stay.

Last year, Binh Thuan served over 5.1 million tourists, earning 10.8 trillion VND (460.7 million USD).

The south central province of Binh Thuan expects to receive 5.7 million visitors for all of 2018, a jump of 12 percent from last year. Total earnings from tourism services are predicted to surge 18.8 percent to 12.8 trillion VND (550.9 million USD).

Roughly 675,000 foreigners chose Binh Thuan for their holidays, with China and the Republic of Korea the top tourist sources, accounting for 28 percent and 13 percent of total international arrivals to the locality, respectively.

Meanwhile, stable growth was seen in tourist arrivals from traditional markets like Russia, the UK, and France.

Seminar discusses expanding Vietnamese rice exports

A seminar on expanding Vietnamese rice exports took place in the Mekong Delta province of Long An on December 21 within the framework of the third Vietnamese rice festival. 

Participants discussed market structures and measures to develop trademarks and affirm the position of Vietnamese rice on the international stage. 

Tran Quoc Toan – deputy head of the Ministry of Industry and Trade’s Department of Import-Export – said Vietnam is now the world’s third largest rice exporter, accounting for 15 percent of the global market share. Its rice has been shipped to 150 countries and territories worldwide. In the first 11 months of this year, total rice exports hit 5.64 million tonnes, worth 2.83 billion USD.

According to Toan, Vietnam is facing fierce competition from other exporters in terms of technological application. Meanwhile, importers are diversifying supplies and demanding higher quality. 

He called for the restructuring of the rice sector, including building concentrated material zones, applying advanced technologies in manufacturing, expanding markets by stepping up bilateral and multilateral negotiations, and marketing and developing distribution networks abroad. 

Nguyen Duc Thanh, Director of the Vietnam Institute for Economic Policy and Research under the Vietnam National University-Hanoi, said that although rice exports remain an important driving force of the sector, it is necessary to gear towards the domestic market too, adding that success in building trademarks at home will lay a solid foundation for Vietnamese rice to move abroad. 

He suggested building a set of standards for rice processing and grinding, reducing the use of plant protection chemicals, encouraging land accumulation for large-scale rice farming, developing micro-finance and insurance mechanism for farmers, and rearranging the Vietnam Food Association to ensure the interests of farmers and businesses. 

Vice Chairman of the provincial People’s Committee Pham Van Canh said the locality has set the goal of having 20,000ha of rice with certified seedlings and safe farming process by 2020.

Domestic petrol prices continue to drop

The price of E5 bio-petrol has dropped slightly by 394 VND per litre, while that of RON95 fell by 318 VND per litre following an announcement of petrol price adjustments released by the Ministry of Finance and Ministry of Industry and Trade on December 21.

A decrease of 257 VND per litre was seen in the price of diesel 0.05S, 249 VND per litre in kerosene, and 394 VND per kilo in 180CST 3.5S fuel oil.

Following the adjustments, E5 bio-petrol will be sold at no more than 16,787 VND per litre, and RON95 at no higher than 18,141 VND per litre.

The ceiling price of diesel is 16,001 VND per litre; kerosene, 15,003 VND per litre; and 180SCT 3.5S fuel oil, 14,008 VND per kilo.

This is the fifth consecutive time that petrol prices have been reduced this year with a total drop of over 4,000 VND per litre.

The current value is 2,000 VND lower than the price at the beginning of the year.

According to the Ministry of Industry and Trade, during the 15 days prior to December 21, global petrol prices fell about 3 USD per barrel compared to the previous period.

Quang Ninh: Construction of Song Khoai industrial park begins

Thai industrial park developer Amata has started the construction of Song Khoai industrial park in Quang Yen town of the northern province of Quang Ninh on December 21.

The park will consists of 714ha and has a total investment of over 3.53 trillion VND (151 million USD). The project is scheduled to become operational in 2020. It will be implemented in five phases, with the first phase covering 123ha.

It aims to develop the infrastructure system of Song Khoai industrial park to attract investors to the park, while helping boost the growth of the province alongside ensuring social balance and environmental protection.

This is the second park that Amata has built in Vietnam, along with a 700ha Bien Hoa industrial park in the southern Dong Nai province.

Addressing the ground-breaking ceremony, Deputy Minister of Planning and Investment Nguyen Van Trung and Chairman of the Quang Ninh People’s Committee Nguyen Duc Long highlighted the efforts of Amata.

They emphasised that the project is not only significant to the development of Quang Yen town, but also to the growth of Quang Ninh province. Furthermore, it is a step towards the development of Quang Yen coastal economic zone in the future, they noted.

Long asked relevant agencies of Quang Ninh to support and create optimal conditions for the investor to promptly deal with administrative procedures for the project, thus ensuring its progress, guaranteeing water and power supply, as well as security for the project.

Measures for VN farm produce’s greater presence in Chinese market

Experts gathered at a seminar in Ho Chi Minh City on December 21 to seek measures to help Vietnam’s agricultural products to penetrate deeper into the Chinese market.

Tran Thanh Nam, Deputy Minister of Agriculture and Rural Development, said China is now the main importer of Vietnam’s farm products. Through cooperation agreements between the two Governments, Vietnam and China will continue to boost the export of Vietnam’s staples to China such as fruits, seafood, rice, wheat and rubber.

Regarding fruits, China is considering prioritising the import of Vietnam’s durian, pomelo, sweet potato, coconut, custard-apple and mangosteen. For seafood, China has also allowed 13 Vietnamese businesses to ship tuna, oyster and tilapia to the country.

As China imposes higher requirements on product quality, origin and packaging, Vietnamese firms need to pay attention to improving product quality and grasping market demand to have suitable production plans, Nam said.

According Li Jianliang, a representative from the Chinese Consulate General in Ho Chi Minh City, potential for cooperation between Vietnam and China in trade of agricultural products remains huge. However, the consumption trend of Chinese people is rapidly changing.

He cited that in 2017, China bought 2.2 million tonnes of rice from Vietnam but this year’s figure stands at only 1.3 million tonnes.  The reason behind the decline is that Chinese people now prefer using high-quality rice products.

Therefore, instead of focusing on quantity, Vietnamese businesses should increase the export of high-quality and high-value products to meet the demand of the Chinese market in a long-term manner.

Huang Jun, General Director of a farm produce distribution and consumption group in Liaoning province, said Chinese consumers appreciate Vietnamese agricultural products, especially fruits. This is an advantage and opportunity for Vietnamese companies to boost exports to the neighbouring market.

He suggested increasing direct trade between the two sides’ businesses to bring in greater values.

Vietnam also needs to step up the building of brands for agricultural products as Chinese enterprises now pay attention to product quality and packaging, he added.

KIDO Group eliminates foreign ownership cap

Food producer KIDO Group has raised its foreign ownership cap from 49 percent to 100 percent, according to a proposal approved recently by the State Securities Commission (SSC).

The information was revealed in a document sent to the Ho Chi Minh Stock Exchange and the Vietnam Securities Depository (VSD) on December 20.

The removal of foreign ownership cap was passed at the company’s annual shareholders’ meeting this year. 

At the meeting, CEO Tran Le Nguyen said many partners were interested in KDC shares and the group wanted to open more room for foreign investors and investment funds.

KIDO recently acquired 51 percent of cooking oil producer Golden Hope Nha Be (GHNB), a joint venture company between Vocarimex and Sime Darby with a chartered capital of 69 billion VND (2.95 million USD). Vocarimex is a member company of KIDO Group that holds a 49 percent stake in GHNB. This means that following the GHNB acquisition, KIDO now owns 100 percent of shares in GHNB.

In the first nine months of the year, KIDO reported net sales of 5.7 trillion VND, up 12.6 percent year on year. It made after-tax profit of 87.6 billion VND, an 83.2 percent decrease.

Conference orients foreign investment attraction in Vietnam

Deputy Prime Minister Trinh Dinh Dung chaired a consultation conference on foreign investment attraction and orientations in the northern province of Vinh Phuc on December 21, during which he affirmed that attracting foreign investment is a consistent policy of the Vietnamese Party and State.

The FDI sector has contributed to boosting technological reform, increasing labour productivity and product quality, creating more jobs, and fostering economic growth, Dung affirmed.

To better attract foreign investment, he stressed the need for localities nationwide to prepare the foundations for construction planning, combine the planning of industrial zones with urban planning, upgrade infrastructure, and step up connectivity.

Localities should ensure the interests of locals when conducting ground clearance to serve construction of industrial zones, while continuing to speed up administrative procedure reform, investing in human resources development, and ensuring security and order at foreign-invested areas, he suggested.

The Deputy PM also expressed his hope that foreign investors will strictly follow their commitments and Vietnamese law, pay attention to developing technology, and coordinate with Vietnamese enterprises to develop the support industry.

Deputy Minister of Planning and Investment Vu Dai Thang said that after 30 years, the FDI sector has become an important part of the Vietnamese economy as a dynamically developing sector which has made significant contributions to the country’s socio-economic development.

As of November 2018, the country has around 27,000 foreign-invested projects from 128 nations and territories, with a total registered capital of nearly 340 billion USD, of which 188.8 billion USD was disbursed.

These projects focus on the industrial field, accounting for 57 percent of the total registered capital. Foreign investors were also present in all provinces and cities, mainly in the Red River and southeastern regions. Last year, the FDI sector contributed over 8 billion USD to the State budget, making up 17.1 percent of the total collection, and created jobs for 3.6 million direct labourers and 5-6 million indirect ones.

According to Tetsu Funayama, head of the Business Forum Committee under the Japanese Business Association in Vietnam, 65 percent of Japanese enterprises chose Vietnam as a top destination in Southeast Asia, with most paying close attention to the country’s policies to developing the support industry.

Therefore, he suggested Vietnam carry out more policies to boost the support industry and facilitate Japanese investment in the country. 

Japan and Vietnam should expand cooperation in training Vietnamese experts, engineers, and technicians to improve the quality of human resources, he added.

At the conference, investment registration certificates were granted to several FDI projects in Vinh Phuc province.

Loc Troi Group signs deal with Dubai food firm

Agricultural company Loc Troi Group signed an agreement with UAE-based food company Phoenix Group in Dubai on December 20 for sustainable rice production in Vietnam.

Under the agreement, around 10,000 smallholder farmers in Vietnam will benefit by developing sustainable rice production on 10,000ha of land.

The two sides agreed there are many opportunities to produce high-quality rice to increase farmers’ incomes and mitigate the impacts of climate change.

Huynh Van Thon, chairman and general director of Loc Troi JSC, which is based in the Mekong Delta province of An Giang, said: “This is a major step forward, which will help us gain access to a sustainable rice production programme, achieve great connectivity, expand our market, and compete in the global rice market.”

"It also aims to help smallholder farmers adapt to and reduce the impacts of climate change and natural disasters," he said.

Phoenix Group chairman Gaurav Dhawan said the tie-up would help expand his company’s presence in Vietnam, adding that the group will also support Loc Troi Group promote Vietnamese rice in the global market.

Loc Troi, established in 1993, is a leading provider of agricultural services and products and a pioneer in building value chain models for sustainable rice production in Vietnam.

Phoenix Group is the world’s second largest rice company with 150,000ha of agricultural land in various countries around the world. 

Vietnam National Shipping Lines surpasses all targets in 2018

The Vietnam National Shipping Lines (Vinalines) surpassed all its production and business targets set for 2018, with its maritime transport output reaching 24.3 million tonnes of goods, and total revenue hitting 13.85 trillion VND (592.8 million USD).

The figures are equal to 113 percent and 101.6 percent of the set targets, respectively, said Vinalines Acting General Director Nguyen Canh Tinh at a working session with Chairman of the Committee for Management of State Capital at Enterprises (CMSC) Nguyen Hoang Anh in Hanoi on December 21.

In the year, the output of goods through ports hit nearly 98 million tonnes, meeting the set goal, while pre-tax profits reached 348 billion VND (14.8 million USD) – a positive result thanks to efforts to step up financial restructuring and asset settlement, strictly monitor business and production activities, and develop consumers, Tinh shared, adding that loss by maritime transport had been cut down by 70 percent.

Next year, Vinalines set targets of 18 million tonnes of goods transported by sea, 107 million tonnes of goods handled at its ports, 12.7 trillion VND in revenue and over 710 billion VND of pre-tax profit, he stated.

He also suggested enhancing connectivity between enterprises managed by the CMSC in investment, business administration, IT application, and in using each other’s services.

Anh reminded that Vinalines should build its business plan in line with the committee’s general plan, and define its position in the country’s Sea-based Economic Development Strategy.

Vinalines, founded in 1995, is a fully State-owned enterprise. It was transformed into a holding company in 2006 and a State-owned one member limited company in 2010. The corporation has made various restructuring steps to improve its business results after several years of sharply falling profits.

The CMSC, established by the Government, debuted late September.

It is managing 19 State-owned economic groups and corporations. According to consolidated financial statements by December 31, 2017, the total value of the State equity at these 19 firms topped 1 quadrillion VND (43 billion USD) and total asset value was 2.3 quadrillion VND.-

Binh Dinh tuna brand announced

A ceremony was held on December 21 at Tam Quan fishing port in Hoai Nhon district in the south central province of Binh Dinh to announce the “Binh Dinh tuna brand”.

The “Binh Dinh tuna brand”, owned by the provincial Department of Agriculture and Rural Development, has been recognised by the National Office of Intellectual Property of Vietnam under Decision 38745/QD-SHTT issued on June 6 this year.

Tran Van Phuc, vice director of the department, stated the registration and recognition of the brand is just the first step to prepare a ground for individuals and organisations operating in the tuna fishing, processing and trading sector to boost their business effectiveness.

The department will work with authorities in Hoai Nhon district in introducing and guiding the usage of the brand, he said.  

Tuna fishing have been developed in the south-central coastal provinces of Binh Dinh, Phu Yen and Khanh Hoa. 

Receiving Japan’s technology and fishing equipment under a project between 2015 and 2017, Binh Dinh annually catches 10,000 tonnes of tuna on average, accounting for 50 percent of the country’s total catch. Hoai Nhon is the province’s tuna hub.

Vietnam’s tuna export revenue is expected to reach the target of 500 million USD in 2018, as the turnover already hit 351 million USD in the first seven months of this year.

EVFTA helps boost Vietnam – France economic partnership

A seminar on boosting Vietnam – France economic ties via the EU – Vietnam Free Trade Agreement (EVFTA) took place in Paris on December 20, attracting about 100 participants.

Sponsored by the France – Vietnam Friendship Association, the Association of Vietnamese in France and the Foyer Vietnam organisation, the event gathered historians, politicians, and legal and economic experts as speakers.

Senator Catherine Deroche, President of the France-Vietnam Friendship Parliamentarians’ Group, said the EVFTA, which is expected to be ratified by the European Parliament and take effect in mid-2019, will create opportunities for Vietnam and France to develop their potential sectors and send out a message on France’s readiness for cooperation with Southeast Asia. 

She noted that her group at the French Senate will lobby for the speedy ratification of the FTA.

Laurence Daziano, an economist and lecturer at the Sciences Po university, affirmed Vietnam is a strategic selection of the EU based on five criteria. 

According to her, regarding population scale, the country has a young and well-educated workforce. In terms of economic growth, it is the 6th biggest economy in Southeast Asia. Concerning the rate of urbanisation, the number of Vietnamese living in urban areas has increased quickly, making up 34 percent of the total population in 2015 compared to 19 percent in 1990. Vietnam’s demand for infrastructure construction and modernization is on the rise. Finally, thanks to its political stability and suitable policy for investment attraction, the country has climbed up the World Bank’s Doing Business rankings.

Participants agreed that the EVFTA will facilitate European countries’ trade through tariff cut for auto and wine/alcohol products, the accreditation of geographical indications protection, and high environmental protection standards.

They noted that French investors are interested in new opportunities in Vietnam, which is a gateway for them to access the Southeast Asian market of more than 600 million people.

Injecting 3.4 billion USD into the Vietnamese market, France is now ranked third among European investors in the country. Nearly 300 French enterprises are operating in Vietnam, creating some 26,000 jobs. The two countries marked 45 years of diplomatic relations and 5 years of strategic partnership in 2018, with General Secretary of the Communist Party of Vietname Nguyen Phu Trong visiting France in March and French Prime Minister Edouard Philippe visiting Vietnam in November.

Conference discusses development of eco-industrial parks

The Ministry of Investment and Planning and the International Financial Corporation (IFC), a member of the World Bank Group, co-organised a conference in Hanoi on December 21 to publish a report on technical guides for eco-industrial parks.

The report, part of their joint project on industrial resources efficiency and clean energy, set out criteria and necessary steps to turn Vietnamese industrials parks (IPs) into eco-ones. It showed opportunities and challenges facing the work and put forth measures to build an ecosystem inside IPs.

Vietnam is home to about 330 IPs. They play an importance role in attracting foreign direct investment, increasing exports and creating jobs. However, they consume a large amount of resources and cause negatives impacts on the environment and nearby communities. 

Navneet Chadha, IFC Resource Efficiency Lead for East Asia and Pacific, said industrial symbiosis concerning waste exchange and recycling is an effective environmental solution and offer new business opportunities. If an IP recycles its wastewater for production, it could reduce the volume of wastewater discharged into the environment by up to 40 percent and cut clean water costs, he elaborated.

Vu Tuong Anh, an IFC expert, said eco-IPs involve effective environmental and resources management, cleaner production at each company inside the IPs, and networks of industrial symbiosis between companies and the IPs’ green infrastructure.

The eco-IPs model has been operated successfully in many countries, including China, the Republic of Korea, Japan, and the US. Recently, on May 22, the Vietnamese Government issued Decree 82/2018/ND-CP on IP and economic zone management, which clarifies specifications of, as well as development goals and favorable policies for eco-IPs in Vietnam.

Vuong Minh Hieu, a representative from the Ministry of Investment and Planning, said turning available IPs into eco-IPs will help translate Decree 82/2018/ND-CP into reality. 

According to Hieu, as a result, enterprises will see their costs cut, and profits and competitiveness improved, while the Vietnamese industry sector will ensure its sustainable growth in line with the country’s commitments in many free trade agreements it has signed.

In the next five years, Vietnam will prioritise building a guiding document for eco-IPs and builds databases supporting the changing process nationwide.

Indian firms seek opportunities to invest in Vietnam’s industry

A delegation from the Confederation of Indian Industry in Tiruppur (CII Tiruppur) visited Ho Chi Minh City on December 19 and 20, looking for investment opportunities and meeting Vietnamese enterprises.

The delegation also visited garment-textile plants in the Mekong Delta city of Can Tho and the southern province of Dong Nai. 

India is one of the major material suppliers of Vietnam’s garment and textile sector, but trade value between the two sides remains modest. Therefore, Indian firms are working to promote trade activities in the Vietnamese market.

In November, the Indian Consulate General in Ho Chi Minh City coordinated with the Vietnam Cotton and Spinning Association (VCOSA) to hold a meeting between Vietnamese firms and their Indian counterparts joining the 18th International Textile and Garment Industry Exhibition. 

The two sides have defined garment and textiles as a prioritised sector in bilateral ties.

Indian General Consul in Ho Chi Minh City K Srikar Reddy cited Indian statistics showing that in the 2017-2018 fiscal year, India’s global export of garment and textile hit 36.73 billion USD, including 555 million USD to Vietnam, up 42 percent over the previous fiscal year.

From April to August 2018 of the 2018-2019 fiscal year, India earned 257 million USD from selling garment and textile products to Vietnam, up 59 percent over the same period a year earlier.

Although trade of garment and textile between the two countries has enjoyed impressive growth in the past two years, the two sides have much potential to continue boosting partnership in the area.

The Vietnamese garment and textile sector imports cotton, accessories and fabric for production.

Under the free trade agreement between India and the ASEAN, most cotton and woven cotton fabric and knitted fabric imported from India will enjoy tax exemption from January 1, 2019, making India a competitive supplier of garment and textile materials and machines for Vietnam.

According to the General Statistics Office, in 2017, trade between Vietnam and India hit 7.62 billion USD, with Vietnam’s exports at 3.75 billion USD.

In the first ten months of 2018, bilateral trade hit 9.18 billion USD, up 47 percent over the same period in 2017, bringing the countries closer to the target of 15 billion USD in two-way trade in 2020.