Top Vietnamese leader’s visit expected to boost Vietnam-Laos trade

Lao Bao border gate facilitates trade between Vietnam and Laos.

The upcoming visit to Laos made by Party General Secretary and President Nguyen Phu Trong from February 24-25 is expected to serve as a launching pad for both nations to tap their economic cooperation potential to the fullest extent.

According to the Ministry of Industry and Trade (MoIT), effective border trade management tools have been applied by the two Governments in recent years, helping the bilateral trade reach more than 1 billion USD in 2018, up 13 percent against the previous year and fulfilling the trade growth target set at the 40th meeting of the Vietnam-Laos Inter-Governmental Committee.

A bilateral trade agreement and a border trade deal signed in 2015 together with various cooperation agreements in the fields of investment, transport, security-defence, and agriculture have laid the legal foundation for and provided the prerequisite for bilateral economic and trade relations to grow, said Do Quoc Hung, Deputy Head of the MoIT’s Asia-Africa Market Department. 

Also, Hung said cooperation programmes between the two ministries of industry and trade, such as the Vietnam-Laos trade development project, the MoU on the establishment of the Vietnam-Laos economy and trade portal, have greatly helped to enhance bilateral trade as well as border trade in particular.

However, the trade growth is still a far cry from the potential of each nation, the official said, adding that trade exchanges at some border gates are still sluggish. 

He noted that Vietnamese firms have met with many difficulties when exporting to Laos as their products are facing fierce competition with those from China and Thailand, which account for 80 percent of Laos’ imports.

In addition, trade infrastructure at border gates, as well as payment and transport services between the two countries need improvements, Hung said.

This year, Vietnam and Laos eye a growth of at least 10 percent in their trade revenue. They will promote connectivity between the two economies, particularly in the fields of transport, energy, sustainable use of water and natural resources, and human resources training, the MoIT said.

Vietnam participates in ASEAN-India expo

Vietnamese products like handicrafts and farm produce, and tourism and transportation services are being showcased in New Delhi, India, within the framework of the fourth ASEAN-India expo that opened on February 21.

On display at the expo are products and services of more than 200 enterprises from ASEAN and India.

More than 20 Vietnamese businesses also participated in the event to seek cooperation opportunities with Indian partners. 

It saw the attendance of representatives of the ASEAN Secretariat, officials in charge of economy, trade, investment and tourism of ASEAN and India, economists and over 100 CEOs of ASEAN and international businesses.

PM attends investors’ spring conference in Nghe An

PM Nguyen Xuan Phuc (centre) at the conference of investors in Nghe An 

Prime Minister Nguyen Xuan Phuc on February 23 attended a conference of investors in the central province of Nghe An on the occasion of the beginning of the Year of the Pig, which was held by the Vietnam Bank for Investment and Development (BIDV) in coordination with Nghe An authorities.  

Addressing the conference, PM Phuc expressed joy at the economic growth of Nghe An in recent years and shared the participants’ trust in a bright future of the province. Stressing the province’s role, he pointed to its limitations such as a lack of high-quality human resources and low per capita income.  

The PM urged Nghe An to work harder to improve the business and investment environment, reform administrative reforms and create the best possible conditions for investors. At the same time, he asked the investors not to give up when facing difficulties, adding that the value of their investment is not only how much money but also intangible value like people’s trust and welcome.  

 PM Phuc assigned ministries and agencies to continue create favourable conditions in terms of mechanisms and policies for Nghe An to attract investment and drive forward socio-economic development. 

On his part, Chairman of Nghe An province People’s Committee Thai Thanh Quy said the organization of annual investors’ meetings has helped the province attract 150 projects worth a total of more than 89 trillion VND (over 3.8 billion USD) since 2014, of which 129 projects have been and are being implemented on schedule.   

 The investors have contributed to creating strong drivers for Nghe An’s growth in the past time, he said, affirming the province’s commitment to serving investors in the spirit of a growth facilitating and service administration. 

 Specifically, in 2019, Nghe An will streamline investment procedures to cut the needed time by half, apply information technology to keep control of all data about investment projects in the province, and strive for equality in treatment of all investors, particularly in access to land. 

 At the conference, Nghe An officials presented decisions approving investment proposals and investment licences to several projects, signed memoranda of understanding and agreements on investment cooperation, and awarded firms and investors with outstanding performance in investment last year. 

 On the sidelines of the conference, there were several important activities including a working session between PM Phuc and a number of economic groups, and the inauguration of two key investment projects, namely the 1.17 trillion VND purified water, herbal, and fruit juice processing plant of TH Group and the 570 billion VND petrol storage facility invested by Thien Minh Duc group.

TTi Group to build solar battery plant at SHTP

An overview of Sai Gon Hi-tech Park in HCM City. 

 TTi Group has proposed developing a solar battery manufacturing plant, expected to cost 150 million USD, at Sai Gon Hi-tech Park (SHTP) in Ho Chi Minh City.

Beside the plant, the US group also plans to build a battery research centre at the park and it would need 10ha of land for these establishments.

According to Le Bich Loan, deputy head of the park’s management board, 16ha of land in the park was now available for the investor.

As of October 2018, the SHTP has granted investment licences to 148 projects, including 93 domestically-invested projects worth more than 38 trillion VND (1.6 billion USD) and 55 foreign-invested ones valued at 5.4 billion USD.

Major investors include Intel, Sanofi, Samsung, Schneider, Datalogic and Jabil.

The park aims to keep up with the Fourth Industrial Revolution by capitalising on digital technology and integrating smart technologies to optimise production, head of the park’s management board Le Hoai Quoc said.

VSIP Bac Ninh holds ground opening ceremony of office building

The ground opening ceremony of VSIP Bac Ninh office building. (Photo: courtesy of VSIP Bac Ninh)

The Vietnam-Singapore Industrial Park (VSIP) in the northern province of Bac Ninh organized a ground opening ceremony of the office building, launch of the Inno-Biz Hub and the accreditation ceremony of Dot Property Southeast Asia Award 2018 for BelHomes on February 24.

These are all significant milestones, marking the new developments in the history of the company.

Participating in the event were representatives from the local authorities, customers, business partners, VSIP Bac Ninh staff and local residents.

The new office building not only brings a fresh image for VSIP Bac Ninh, creates an ideal working environment but also becomes a source of motivation for all the staff to keep contributing and devoting for the company and providing high quality services to the customers.

In the framework of the programme, VSIP Bac Ninh officially launched the Inno-Biz Hub – which is specially designed for office buildings, R&D centre, data & testing centre, very light manufacturing – assembling and commercial spaces. Inno – Biz Hub can be regarded as the final segment in VSIP Bac Ninh to create a comprehensive complex where manufacturers, commercial – technical – residential providers can supplement one another for the sustainable development.

On this occasion, VSIP Bac Ninh honorably received the “Best Sustainable Residential Development Southeast Asia 2018” awarded by Dot Property for BelHomes – the 5.7-hectare self-development project which was initiated, invested and constructed by the company’s leaders and staff who put their heart and soul into it with a vision to make each home a “nest” filled of “beauty and happiness”.

Aiming to turn the date of the event to be a totally relaxing Sunday for all the participants, VSIP Bac Ninh also organized a Spring Festival at the Central Park with a variety of traditional and modern games, food and shopping stalls, folk songs and street music performances.

The event, with the combination of various activities with different meanings, again affirmed VSIP Bac Ninh’s visions and core values – "We are a people-centred, environment-friendly integrated township developer providing the preferred choice for all to live, learn, work and play".

VSIP Bac Ninh is the third project of VSIP Group – a symbol of Vietnam – Singapore effective economic cooperation. Officially inaugurated on December 11, 2007, after 12 years of establishment and development, VSIP Bac Ninh has successfully founded an integrated industrial park and township over nearly 700 hectares of land which located at Phu Chan commune, Tu Son town – the strategic border between Hanoi Capital and Bac Ninh province.

Leipzig trade fair helps promote Vietnam-Germany cooperation: German officials

At a booth of Vietnam in the fair 

The 2019 Leipzig Trade Fair is a good opportunity to promote cooperation between Germany’s Leipzig and Ho Chi Minh City, and Vietnam and Germany, said German officials.                                                                                                                

Vietnam was the main country partner of the event, which began in Leipzig city of Germany’s Sachsen-Anhalt state on February 23, for the first time. 

More than 40 businesses from Ho Chi Minh City are showcasing their products at the fair, including farm produce, handicrafts, food, leather and footwear. 

Talking to Vietnam News Agency correspondents in Germany, Managing Director of the fair Martin Buhl-Wagner said booths of firms from HCM City, which has set up twining ties with Leipzig, have left a very good impression on visitors to the fair as they offer a space of Vietnamese culture and cuisine.

According to him, the Vietnamese community in Leipzig has significantly contributed to both economic cooperation and friendship between Vietnam and Germany. 

Reiner Haselhoff, Governor of Sachsen - Anhalt state said the Vietnamese community in Leipzig has played important role in Leipzig’s economic development, especially in handicraft industry. 

The Vietnamese community in Leipzig is a good example of effective comprehensive integration, he affirmed.

Meanwhile, in his speech at the fair, Mayor of Leipzig Burkhard Jung expressed his pleasure that Vietnam is the main partner of this year's fair.

Leipzig is the first German city to have a representative office at the German House in HCM City, he said, adding that this helps enhance cooperation between the two countries and their cities.

Peter Wollseifer - President of the Central Association of German Crafts also highlighted the importance of Vietnam-German cooperation. 

The successful collaboration between the two nations in terms of vocational training and labour exchange has helped make bilateral relations stronger, he said, noting that the maintenance of cooperative ties like this is very important, especially with protectionism rising worldwide.

The Leipzig Trade Fair, which will last until March 3, is one of the biggest and most successful consumer fairs in Germany, attracting about 1,000 firms from 20 countries and territories this year.

A Vietnam-Germany trade and investment forum will be held during the fair.

Seminar on startups, business registration in RoK

The Vietnam Business Association in the Republic of Korea (VIBAK) held a seminar in the southern city of Ansan on February 24 to discuss startups and business registration. 

Speaking at the event, member of the Vietnam Fatherland Front Central Committee and VIBAK Chairman Tran Hai Linh said the event aims to support VIBAK members in business and trade in the host country. 

He added that VIBAK will work with the Business Association of Overseas Vietnamese (BAOOV) to hold the first worldwide conference of Vietnamese entrepreneurs in the RoK, which aims to connect them to help contribute to Vietnam’s economic development. 

Vietnamese Ambassador to the RoK Nguyen Vu Tu expressed his belief that following the event, more opportunities will open up to Vietnamese firms in the RoK. 

Founded on July 7, 2018, VIBAK hopes to create an eco-system to facilitate mutual growth among members and set up new companies and restaurants. 

Vietnam – RoK ties are growing in a wide range of areas, with the two countries celebrating the 10th anniversary of their bilateral strategic cooperative partnership this year.

The RoK is the largest investor in Vietnam with more than 7,400 projects worth 62.5 billion USD as of late 2018, creating some 70,000 jobs and contributing nearly 30 percent of Vietnam’s total exports. 

The country is also the second largest trade partner of Vietnam, behind China, with two-way trade reaching 65.7 billion USD last year and expected to hit 100 billion USD by 2020. 

Nearly 3.5 million Koreans visited Vietnam last year while Vietnamese tourist arrivals to the nation neared 500,000, up 42.1 percent year on year.

People-to-people exchange has become widespread as well, with more than 150,000 citizens living and working in each other’s country.

Fifth Ben Tre coconut festival slated for November

At the meeting to announce the plan for the fifth Ben Tre coconut festival 

The fifth coconut festival in the Mekong Delta province of Ben Tre is scheduled to take place from November 12-18 this year, offering a diverse range of activities across the province, announced Director of the provincial Department of Culture, Sports, and Tourism Truong Quoc Phong.

He revealed the information during the local authorities’ meeting with the press on February 22.

The festival will feature exhibitions on coconut products and trade fairs, along with a variety of southern cuisine starring the key ingredient. A workshop focusing on brand building for Ben Tre coconut will also be arranged within the framework of the event.

Chairman of the provincial People’s Committee Cao Van Trong said the festival is designed to introduce Ben Tre’s coconut products to domestic and foreign tourists. It also offers opportunities to raise the value and position of the country’s coconut sector towards sustainable development and national brand building, he added.

The festival will give participants the chance to exchange experience in coconut cultivation, processing, and consumption. It is hoped to encourage coconut growers to apply science-technology in cultivation and call on businesses to utilise modern devices to improve productivity and quality, thus expanding markets and boosting exports. 

Ben Tre province is home to 163,000 households involved in farming 71,000 ha of coconut tree, or half of Vietnam’s coconut-growing land. They produce 800 million coconuts and ship about 200 million USD worth of coconut products abroad annually. The province’s coconuts are exported to about 84 countries and territories worldwide. 

HCM City focuses on industrial products

An exhibition on HCM City’s key industrial and agricultural product groups

The HCM City People’s Committee will offer more support such as workforce training and financial assistance to companies that make key industrial products.

Favourable loans policies and trade facilitation will also provide to businesses that make key industrial products, which include moulded metallic products such as high-precision moulds, steels and machine parts, electronic goods and cables, plastic and rubber, processed foodstuff, drinks, IT and clothing.

Medicine, medicinal chemistry and pharmacognosy (study of plants and natural sources for use as drugs) are classified as product groups with high potential.

The city will help businesses invest and expand their activities, as well as give priority to land for companies operating in key industrial product groups and groups with high potential.

These businesses will receive favourable investment policies; and be part of the city’s programme to link banks and businesses to further procurement and investments.

The key industrial product groups will also be part of the programmes that support small- to medium-sized enterprises, which will improve businesses’ competitiveness and global integration. In addition, they will take part in science and technology development efforts.

Their involvement in these programmes will include training and consultancy in quality management, innovation, intellectual property rights and branding disputes. They will also help businesses acquire certifications involved with advanced technologies.

Financial assistance will be provided to businesses taking part in workforce training programmes held domestically and overseas, and for promotion of their products at trade fairs. The businesses will also be given priority in trade facilitation and networking events.

PM encourages investors in central province

Vietnam’s laws always protect the legitimate rights of investors and attach importance to all economic sectors, considering the private one as an important driving force of the development, Prime Minister Nguyen Xuan Phuc said on February 23.

Meeting representatives of major enterprises and investors in the central province of Nghe An, the Government leader also spoke highly of their decisions to do business in the locality, which helps create more jobs and raise income for locals and accelerate regional socio-economic development.

In his reception of leading officials of foreign enterprises, PM Phuc expressed his hope that they will intensify their investment in the region in the fields of their strength and locality’s need. Their work should take into consideration the environment factor and bring about high added values, thus benefiting both enterprises and localilties.

More and more investors are coming to Vietnam, and this proves that the investment and business environment in the country has been considerably improved, the leader stressed.

For their part, representatives of investors expressed their wish to continue and expand their business in the region and spoke highly of the quality of the local human resources. They also said they hope for more meetings with representative of local authorities and the Government.

Earlier the same day, PM Phuc attended a ceremony to inaugurate an oil storage facility and port in Nghi Loc district of Nghe An province. Invested with nearly 1.5 trillion VND (over 64.6 million USD) by the Thien Minh Duc Group, the port can accommodate ships of up to 49,000 tonnes and the storage facility can keep 120,000 tonnes.

HDBank named Asia’s best service leader by Euromoney magazine

HDBank was recently selected as Asia best service and Vietnam market leader in the “Trade Finance Survey 2019” by the English-language monthly magazine Euromoney.

HDBank was selected out of 7,000 organisations and companies from 89 national and territories thanks to its outstanding strategy and business plans as well as strong human resources in 2018.

HDBank is one of 200 banks that have joined ADB’s financial assistance programme since 2015. Through the programme, the bank has accelerated campaigns to support customers’ import-export activities, especially small- and medium-sized enterprises (SMEs).

In its 2017-2021 plan, HDBank aims to become the leading bank in the country, targeting small- and medium-sized enterprises.

To improve quality and bring more services to customers, the bank is focusing on developing human resources by organising training courses.

With its strong efforts, the bank has received many awards like the “Best Cash Management in Vietnam” for five consecutive years from 2012 to 2016, and Best Working Place and Best Cash Manager in Asia Pacific in 2018.

After 30 years of operating in the Vietnamese market, HDBank has widely developed its system in the country with 285 banking transaction places and nearly 14,000 financial transaction points. The company has also developed over 400 financial institutions in the world.

Last year, the bank earned pre-tax profits of over 4 trillion VND (175 million USD) in 2018, up by nearly 66 percent year-on-year. This is the highest level that the bank has ever reached.

By the end of last year, the bank’s total assets were 216 trillion VND (9.5 billion USD), jumping by 14 percent over 2017. 

Seminar looks into marine spatial planning

The Ministry of Natural Resources and Environment, the Vietnam National Commission for UNESCO, and UNESCO Office in Hanoi held a seminar on February 22 to debate marine spatial planning towards a sustainable green economy. 

Speaking at the event, Director General of the Vietnam Administration of Seas and Islands Ta Dinh Thi said the event is part of activities under the second annual conference of the Intergovernmental Oceanographic Commission of UNESCO held in Hanoi.

Participants suggested effectively realising the marine spatial planning towards a sustainable green economy, the Vietnam’s strategy on the sustainable development of marine economy till 2020 with a vision to 2045, and the United Nations’ sustainable development goals. 

They agreed on a proposal to support the building of a marine spatial and ocean governance planning in Vietnam. 

Discussions on capacity improvement, data system, and communications in ocean governance were also put on the table. 

The event afforded policymakers and management agencies a chance to acquire international experience, discuss existing challenges and approach to the planning.

PM attends inauguration of TH Group’s purified water plant

Prime Minister Nguyen Xuan Phuc cut the ribbon to officially inaugurate the Nui Tien purified water, herbal, and fruit juice processing plant invested by TH Group in the central province of Nghe An on February 22. 

Built from August 2017 in line with Japanese production standards at a cost of over 1.1 trillion VND (47.8 million USD), the plant is equipped with two lines using the latest energy-saving and eco-friendly technology. 

In December 2018, its first products were put on the market under the trademark TH True Water. With a capacity of 76,000 bottles per hour, Nui Tien is the largest and most state-of-the-art plant of its kind in the central region. It is expected to generate jobs for over 300 local workers, earn 340 billion VND in revenue, and contribute nearly 34 billion VND to the local state budget this year. 

Speaking at the event, PM Phuc said that high-tech agriculture is an inevitable trend, especially amidst threats of climate change. Nghe An is now home to many high-tech farming projects by TH Group such as dairy cow farming, wood and sugar processing. With the launch of the Nui Tien plant, the west of Nghe An is expected to receive a face-lift on the back of its abundant land and workforce. 

He suggested that Nghe An strive to dedicate 5-7 percent of its land to high-tech agriculture by 2020, and 15-20 percent by 2025. The value of agricultural products using modern technology should account for over 50 percent of the locality’s total farm produce, 

In order to make breakthroughs for Nghe An’s agriculture, the leader asked TH Group to run the plant effectively for the sake of public health, develop the agricultural production chain, and improve the livelihoods of local people. 

The province was urged to offer all possible support to the group, invest in agricultural infrastructure, and issue incentives in support of firms. 

The PM assigned ministries and agencies to issue relevant mechanisms and laws to develop high-tech agriculture, helping Nghe An attract more investment projects towards turning the locality into an economic and cultural centre in the north central region in accordance with the Politburo’s Resolution No.26. 

On the occasion, he presented the second-class Labour Order to TH Group. 

Concluding the ceremony, he beat the drum to launch a tree planting festival in memory of President Ho Chi Minh. Along with local leaders and staff from TH Group, he planted a tree at the Nui Tien plant site. 

TH Group also presented 21,000 green spice trees to 21 districts and townships across Nghe An with the hope of protecting the environment and improving local livelihoods.

Seminar talks adopting int’l financial reporting standards

The Ministry of Finance and the Japan International Cooperation Agency (JICA) held a seminar in Hanoi on February 22 to discuss international experience in and a roadmap on the adoption of International Financial Reporting Standards (IFRS) in Vietnam. 

Speaking at the event, Deputy Finance Minister Do Hoang Anh Tuan highlighted the need to standardise financial reporting to create a transparent business environment and attract more investment. 

With high levels of economic openness alongside agreements that facilitate trade liberalisation and investment flows, especially from the private sector, Vietnam needs to comply with financial reporting standards, he said. 

Chief JICA representative in Vietnam Konaka Tesuo described IFRS as an important tool to pooling global financial resources. He said that over the past year, JICA has been conducted surveys and sharing Japanese and other Asian countries’ experience in using IFRS. Meanwhile the Ministry of Finance has been considering the most appropriate roadmap to IFRS adoption. 

A representative from the finance ministry’s Department of Accounting and Audit Regulations said that once the IFRS is adopted, corporate financial reports will improve significantly on the back of promoting better accountability and transparency among businesses. 

The number of foreign-invested enterprises in Vietnam is also expected to increase as they could cut the cost of switching financial statements under Vietnam’s accounting standards to those under IFRS to be synchronous with their parent companies abroad. 

Several participants said difficulties still lie ahead when it comes to IFRS adoption as Vietnam’s capital market is still limited, while financial tools such as convertible bonds, derivatives, and preferred stocks are yet to be traded widely. 

They said unless thorough preparations are made, it will be hard to adopt IFRS successfully.

Can Tho, India step up economic, technical collaboration

Indian Ambassador to Vietnam Parvathaneni Harish (L) and Chairman of the Can Tho People’s Committee Vo Thanh Thong (Source: dangcongsan.vn) 

The Indian Embassy in Vietnam organised the Indian Technical and Economic Cooperation (ITEC) programme in Can Tho on February 22, aiming to boost cooperation with the city and the Mekong Delta region.

Speaking at the occasion, Indian Ambassador to Vietnam Parvathaneni Harish said the event is the Indian Government’s flagship programme for its development partner countries, initiated in 1970. 

The diplomat affirmed that Vietnam is an important partner to India in Southeast Asia, noting that the Mekong Delta and its economic hub Can Tho, which both boast potential for extensive cooperation, are receiving significant attention from investors and businesses.

Harish said he expects that public personnel in the region due to receive ITEC scholarships will be equipped with the necessary professional skills and a long-term vision on socio-economic development amidst global integration, and as such will go on to contribute to Vietnam’s national construction and the implementation of its diplomatic goals with foreign countries, including India.

He said India is looking forward to the cooperation in telecommunications, and information and communications technology with Can Tho reaching its full potential. 

He added that India and Can Tho can push for collaboration through increasing information and experience exchange between their public management agencies and enterprises.

According to the ambassador, India hopes for the effective implementation of digital connectivity projects with Can Tho in terms of experience exchange on building policy and legal regulations on post and telecommunications management; coordination to build training programmes in the field; and delegation exchanges to share experience and build partnerships between Vietnamese and Indian telecom firms, among others.

Welcoming India’s cooperation goodwill, Chairman of the Can Tho People’s Committee Vo Thanh Thong expressed his expectation that the embassy will create more favorable conditions for his city and other Mekong Delta localities to obtain scholarships from India, contributing to boosting the Vietnam-India comprehensive strategic partnership.

Thong pledged to facilitate Indian businesses in joining local IT programmes and projects with a belief that the group, with strengths in capital, experience, and technologies, will find plentiful cooperation and investment opportunities in the city.

Vietnam receives 150 ITEC scholarships annually, the highest number among recipient nations. The programme targets public personnel aged between 25 and 45, with at least 5 years work experience and who have never been sponsored to study in India before. 

Currently, under the programme, Vietnamese students are studying across 60 educational establishments in India, which offer over 300 short-term courses on business management and rural development, among others. 

Wood, forestry exports must surpass 11 billion USD in 2019: PM

The wood and forestry export turnover for this year needs to surpass 11 billion USD, Prime Minister Nguyen Xuan Phuc told the agriculture sector at a forum held in Hanoi on February 22.

Vietnamese wood products only account for 6 percent of the global market share, so a development strategy must be formed to turn Vietnam into a wood processing export centre by 2030, he said.

To realise the goal, Minister of Agriculture and Rural Development Nguyen Xuan Cuong said the sector will effectively carry out the Law on Forestry and build documents guiding the implementation of new international commitments – such as the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) as well as the Voluntary Partnership Agreement (VPA) on Forest Law Enforcement, Governance, and Trade (FLEGT) – to support the wood processing and forestry industry’s stable development.

The agriculture sector will work to ensure the supply of about 37.5 million cu.m of timber material for the wood processing industry, grant sustainable forest management certifications according to international practices and criteria, and limit the export of raw wood material.

It will also increase the productivity and quality of planted forests and encourage farmers to change their cultivation habits from extensive to intensive farming.

The ministry will seek to maintain traditional markets and expand into new areas of potential to optimise the opportunities brought about from the free trade agreements.

In 2018, Vietnam earned 9.38 billion USD from exporting wood and forestry products, making up over 23 percent of the agriculture sector’s export turnover and recording a trade surplus of 7 billion USD.

The country now has about 4,500 wood processing and forestry businesses, 95 percent of which are private firms.

Vietnamese wood and forestry products have been sold to over 120 nations and territories. The country is the fifth largest exporter of wood and forestry products in the world, second in Asia, and first in Southeast Asia. 

PM pledges optimal conditions for Japanese MUFG Bank in Vietnam

Prime Minister Nguyen Xuan Phuc (R) welcomes Kanetsugu Mike, President and CEO of MUFG Bank 

The Vietnamese Government is committed to creating the best conditions for foreign firms, including MUFG Bank, to operate in Vietnam, stated Prime Minister Nguyen Xuan Phuc at a meeting with Kanetsugu Mike, President and CEO of the Japanese largest bank in Hanoi on February 22.

The PM congratulated MUFG Bank on its success in Vietnam as a key partner and strategic shareholder of the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank).

He highlighted the progress of the Vietnam-Japan strategic partnership in various fields, including finance and banking.

Kanetsugu Mike said that since MUFG Bank entered Vietnam in 1996, it has received support from local governments, ministries and sectors.

He noted that many Japanese firms have chosen to invest in Vietnam as in the recent five years, the number of MUFG Bank’s Japanese customers investing in Vietnam has surged.

Additionally, Vietinbank has met the Basel II international standards, making important contributions to Vietnamese economic development.

As a strategic shareholder of Vietinbank, MUFG is willing to help Vietinbank increase its charter capital to facilitate business efficiency, he said, expressing his hope for the Vietnamese Government’s support for the move.

He also called for the Government’s assistance to other commercial banks of Vietnam to raise charter capital, which he said that will effectively contribute to the growth of Vietnam.

Lauding the suggestions of the MUFG Bank leader, the Vietnamese PM affirmed that the Government works hard to support all banks, including Vietinbank.

The government has designed a strategy to develop the banking sector towards the top four in ASEAN.

Underlining development achievements Vietnam has made over the years, PM Phuc hailed official development assistance from the Japanese government as well as the investment of Japanese businesses.

However, the PM showed his hope that Japanese firms will invest more in Vietnam with larger projects, thus making Japan the top foreign investor in the country.

He called for MUFG Bank and the CEO continued support to Vietinbank to enhance its management capacity and service quality.

Kanetsugu Mike pledged stronger collaboration with Vietinbank, expressing his belief that the Government and economy of Vietnam will continue to develop strongly.

He said that he hopes the Vietnamese Government will continue backing financial institutions and banks of Japan to invest more in Vietnam’s banking sector, while stressing the need for more investment promotion events.

Solutions sought to speed up Metro Line No 1 project in HCM City

At the construction site of the project (Source: sggp.org.vn)

Representatives from the Ho Chi Minh City People’s Committee on February 21 worked with consultants  and contractors of the Ben Thanh - Suoi Tien Urban Railway Line 1 (Metro No.1) project in the city to discuss solutions to accelerate its implementation. 

They checked the Municipal Theatre station - the tunnel section connecting the theatre with Ba Son and Phuoc Long stations. An inspection was also carried out at the construction site of rail assembly and welding on the line. 

The construction of these stations is basically completed. 

After their inspections, city leaders said they believe the project could be completed and put into operation by the end of 2020.

The joint venture of consultancy units and contractors said the biggest difficulties left are the approval to adjust the total investment, and the delay of payment for completed items. 

Ho Chi Minh City’s Metro No1 project links Ben Thanh Market in District 1 with Suoi Tien Tourist Park in District 9.

It is one of the eight metro lines of the HCM City Metro project managed by the city’s Management Authority for Urban Railways.

The project includes four major bidding packages using official development assistance (ODA) and funds from the Japan International Cooperation Agency (JICA).

It was first proposed in 2001 as part of a comprehensive public transport plan for the city and neighbouring provinces to mitigate traffic congestion, and includes three monorail lines with a total length of 37km and six partly underground metro routes running a total of 107km. Ben Thanh will be the hub connecting all the lines.

Project adjustments were approved in August 2011 and after investment costs were re-calculated by consultancy agencies, costs increased to more than 47.3 trillion VND (2.1 billion USD).

According to the People’s Committee, the city has signed three loan agreements worth 31.2 trillion VND.

By now, 62.5 percent of the construction work has been completed. 

Chairman of the municipal People’s Committee Nguyen Thanh Phong said municipal authorities will continue to work with central agencies and ministries to seek additional capital to pay contractors, and direct relevant unites to hasten the disbursement. 

He requested the city’s departments and sectors to support the municipal Management Authority for Urban Railways in issues related to legal procedures for project adjustment, extension of contract implementation time; propose solutions to swift disbursement for contractors; and help with the technical design evaluation of the project.

Phong asked for the completion of 80 percent of the work in 2019, towards completing the project at the end of 2020.

Mekong Delta city to develop logistics network

At the workshop 

The establishment of a logistics centre in the Mekong Delta city of Can Tho will make active contributions to stable and sustainable economic development in the region, Vice Chairman of the municipal People’s Committee Truong Quang Hoai Nam said at a workshop held in the city on February 20.

The efficient operation of the centre will help minimise input costs and increase the added value of the region’s staple products, Nam said.

Ho Thanh Phong, Rector of Hong Bang International University in Ho Chi Minh City, said a research team from the university has conducted an evaluation of the logistics situation in Can Tho and the delta over the past two years, pointing out the field’s strengths and weaknesses.

Through which, the team has set out some solutions to improve the quality of logistics services, as well as proposed a set of criteria for evaluating the operational efficiency of logistics centres and designed a competitive logistics network, he added.

According to Nguyen Minh Toai, Director of the municipal Department of Industry and Trade, the demand for transporting export goods in the Mekong Delta ranges from 17 to 18 million tonnes per year. However, in fact, about 70 percent of these export goods have to be transferred to big ports in the southern economic hub of Ho Chi Minh City and Cai Mep Port in southern Ba Ria-Vung Tau province, which makes the transportation costs of businesses 10-40 percent higher.

Therefore, the development of logistics services and the establishment of a second-class logistics centre in Can Tho is an urgent requirement that also aligns with regional economic development, Toai said.

He added that the municipal People’s Committee has agreed with the policy of building the second-class centre at Cai Cui port, in the Hung Phu industrial park in Tan Phu ward, Cai Rang district, on 242.2 ha.

With 13 cities and provinces covering over 4 million ha and home to a population of over 18 million, the Mekong Delta plays a crucial role in the country’s socio-economic development.

The region contributes 40 percent to the nation’s agricultural production value, over 50 percent of rice output, 90 percent of rice for exports, 65 percent of seafood output, and 70 percent of fruit.

The gross regional domestic product (GRDP) growth reached 7.5 percent and the per capita GDP in 2018 was estimated at 2,217 USD. The total state budget collection in the 2016-2018 period was over 243.2 trillion VND (10.48 billion USD), contributing 18 percent to the country’s GDP.