Company to invest 700 billion VND in Nga Bay floating market

A corner of Nga Bay floating market 

A company has proposed to the authorities of the Mekong Delta province of Hau Giang a plan to develop tourism at the local famous Nga Bay floating market, Nga Bay town, at a cost of more than 700 billion VND (nearly 30 million USD). 

At a working session with the provincial officials on September 4, representatives of Phuoc Loc Trade-Construction Ltd Co said the plan will be conducted in four phases. 

The first two phases would be carried out in 2018 and 2019, with the company investing 100 billion VND into building a fleet of tourist boats, necessary service facilities and an effective management apparatus for the market. The company will also cooperate with local farmers, garden owners and artisans to create orchards, gardens and craft sites supplying products for the floating market and serving visitors as well. 

In the next two phases from 2019 to 2023, the company will build a trade and service complex at the site, including walking areas, a park and square by the river, a four-star hotel, restaurants and homestay facilities. Its ambitious plan also envisions large-scale ecotourism sites and an urban area in Nga Bay town.  

Le Gia Phuoc, Director of Phuoc Loc Co said considering the location and popularity of the Nga Bay floating market, the company hopes to develop a tourism site on a total area of 200 ha. 

Chairman of the provincial People’s Committee Le Tien Chau said the province lacks capital for tourism development due to limited budget. He assigned relevant agencies to create favourable conditions for the company to undertake procedures and realise the plan. 

The Nga Bay floating market is one of the busiest markets in the Mekong Delta, and also one frequented by tourists. It was formed more than one century ago at the crossing point of seven canals and rivers. 

However, when the local authorities moved the market to another site 10km away for waterway safety reasons, sales began to fall. 

The province is seeking ways to revive the market for tourism purpose.

FDI firms play important role in Vietnam’s economic growth

Foreign-invested enterprises have become an important driving force for Vietnam’s economic development and international integration after 30 years since the country began attracting foreign direct investment (FDI).

Statistics from the Import-Export Department under the Ministry of Industry and Trade, from only 10 billion USD in 1988 when Vietnam started absorbing FDI, the country’s total export revenue is expected to hit 225 billion USD in 2018.

Notably, an annual average rise of 17.6 percent has been recorded in exports in the 2011-2015 period, much higher than the target set in the import-export strategy to 2020 with a vision to 2030 as well as the goal of 12 percent set out at the 11th Party National Congress. The FDI sector has played a key role in maintaining export growth of the country.

Tran Thanh Hai, Deputy Director of the Import-Export Department, said that six years ago, export value of domestic firms was higher than that of FDI enterprises, but now exports of FDI enterprises has tripled that of their Vietnamese peers.

FDI firms have made up 20 percent of the total State budget collection, 10 times higher than the figure in 2000. Particularly, over 50 percent of Vietnam’s total industrial production value comes from FDI firms. The FDI businesses have made a giant step in just a short time, but their influence on domestic companies remains modest.

Hai pointed out that the Republic of Korea’s Samsung Group is producing 40 percent of smartphones in Vietnam with export revenue of 50 billion USD in 2017, equivalent to the combined export turnover of all domestic enterprises.

However, less than 30 domestic firms have been able to join the production chain of Samsung in Vietnam, Hai noted.

At the same time, tax evasion and transfer pricing have still been found in some FDI businesses, while many FDI projects have damaged the environment, which are bitter lessons for Vietnam in FDI attraction.

Moreover, although due attention have been paid to the transfer and receipt of technologies from FDI enterprises for years, the results have yet to reach expectation.

In 2018, Vietnam expects to open up a new and brighter chapter in FDI attraction. Experts held that not only in 2018 but following years, Vietnam will still be an attractive destination for foreign investors.

However, they also highlighted the need for more efforts from the Government as well as both domestic and foreign businesses in maintaining the bight prospect for Vietnam in investment attraction.

Bulgarian businesses seek investment opportunities in Vietnam

Twenty Bulgarian businesses will accompany a government delegation led by the Bulgarian Minister of Economy Emil Karanikolov for a visit Vietnam over September 17-21 to seek trade and investment opportunities on the occasion of the Vietnam-Bulgaria Inter-Governmental Committee's meeting.

The Bulgarian businesses operate in a diverse range of fields including industrial zones, engine lubricants, animal feed, farm produce, defence industry, beverages, consultancy on the production of food additives and organic cosmetics, investment and management of fishery technology, audiovisual technology, diesel and gas engine assembly and maintenance, logistics, and waste treatment technology.
During the visit, the Vietnam Chamber of Commerce and Industry will hold a Vietnam-Bulgaria Business Forum on September 18 in Hanoi.

Japanese pears hit Vietnamese market shelves

Pears grown in Shimotsuma, Ibaraki prefecture in Japan have been granted an export license for Vietnam, effectual from August 29.

Accordingly, 1,008 boxes (weighing 10kg each) have been quarantined and transported to Vietnam. Around 160 tons of pears will be exported from Ibaraki prefecture to the Southeast Asian nation from now to the end of this year.

According to the Shimotsuma fruit federation, Vietnam’s market for imported fruit is developing strongly at the moment. The government has encouraged the development of the market for the past 10 years but the import volume of pears into Vietnam had remained relatively modest.

In addition to Vietnam, Shimotsuma’s pears are being promoted for export to regional neighbours, Thailand and Malaysia.

Cement firms turn to exports to curb oversupply

Cement firms are scaling up efforts to boost exports to tackle the growing oversupply in the domestic market.

Since the beginning of the year, cement and clinker consumption in the domestic market was growing modestly amidst an estimated oversupply of 30 million tonnes.

Figures from the Ministry of Construction show that 52.4 million tonnes of cement were sold in both the domestic and export markets in the first seven months of this year, a 27 per cent jump on-year and equal to 62.3 per cent of the annual projection.

Of this volume, 17.65 million tonnes of cement and clinker came from export, garnering $656.3 million in export value, up 63.2 per cent in volume and 73.4 per cent in value compared to the same period in 2017.

According to Nguyen Quang Cung, chairman of Vietnam Cement Association (VNCA), growth in cement consumption in the domestic market was very slow.

VNCA reports show that cement consumption in the domestic market was slowing down since 2015 until end of 2017.

Cung therefore anticipated a slight increase of about 3 per cent in cement consumption in the domestic market this year, against a rosier export prospect as several export markets, such as China and the Philippines, have increased cement import from Vietnam.

A source from privately-held major cement producer The Vissai Group, which owns two cement factories in Ha Nam province’s Thanh Liem district with a combined capacity of three million tones, said they are facing mounting hardships in boosting sales.

“It is extremely hard to sell products in Ha Nam or Ninh Binh due to the strong presence of cement factories. Our remedy is to boost sales in the southern market and increase exports,” said Hoang Manh Truong, the company’s chairman.

Not many cement makers can follow The Vissai’s example, as the company boasts its own international seaport and effective logistics services to ship products to southern and overseas markets.

As the cement oversupply is reaching a critical level, a raft of new cement production lines are expected to begin production after 2018, thus escalating pressures on cement consumption.

These include Song Lam Cement’s production lines 3 and 4 of The Vissai, with an annual capacity of 3.8 million tonnes, ThaiGroup’s Kaito Ha Tien Cement in Binh Phuoc province (4.5 million tones), and Tan Thang Cement at Hoang Mai Nghe An JSC (1.8 million tones).

“In this context, VNCA proposes the government to loosen the pace of cement projects from now to 2025, while simultaneously focusing on raising product quality to mitigate pressures on the cement sector. This is an urgent need,” Cung said.

Businesses seek clear path into lucrative US market

The US is home to a consumer market with great potential for Vietnamese businesses, but to penetrate this fastidious market, Vietnamese businesses will need to improve their operations and offerings to meet the required standards.

In the first half of the year, Vietnam’s total export turnover to the US soared 10% to US$21 billion against the same period last year, accounting for 19% of the country’s total export turnover, according to statistics from the Ministry of Industry and Trade.
Notably, Vietnam’s exports to the US grew at a rate of 20% per year for several years but there remain challenges for Vietnamese businesses when exporting to the market.

Mr Nguyen Thang Vuong, from the European and American Markets under the Ministry of Industry and Trade said the export capacity of Vietnamese businesses remains weak, while the US is a competitive market with high costs, longer transport times, and a complicated system of trading laws.

Increasing technical barriers on food safety and protection of domestic production is another hindrance.

Mr Dao Tran Nhan, former Counselor of the Vietnam Trade Office in the US, said the FDA Food Safety Modernization Act (FSMA) is the biggest obstacle for export businesses, which needs to be surmounted to gain access to the demanding market.

The Act has placed the burden of responsibility for food safety and hygiene and supervision on the shoulders of importers and manufacturers. One of the strict requirements set by the FSMA is to formulate a food safety and hygiene program at production facilities. Businesses must establish the program when they begin to produce goods, as the US will trace the origin of their products before entry to the market.

Under the program, the American side requests that Vietnamese staff have good qualifications, a strong command of English and the necessary level of experience to implement the program as required by the US Food and Drug Administration (FDA). When exporting food and drinks, businesses need to anticipate that a US delegation will carry out surprise inspections of their production facilities and factories, Mr Nhan noted.

Many countries share the view that the fastest way to penetrate the US market is through retail channels.

For example, the US retail giant Walmart has sales amounting to nearly US$500 billion per year with 140,000 types of goods and 11,500 stores in 28 countries, while The Kroger Company has 2,796 stores in 35statesacross the US with sales reaching US$115 billion per year.

Mr Nhan pointed out that there is no simple process to gaining shelf space at Walmart or Kroger and the plan to export through US supermarkets in Vietnam is not feasible as almost all of the US’ biggest retailers have no presence in Vietnam.

One of the criteria for Walmart to open a store in a country is that its market has at least 100 million people. At present, Walmart is targeting mass markets such as China and India.

Mr Nhan said the plan to sell goods directly through major supermarkets in the US is unlikely to be successful. There are about 1,000 companies lining up to offer their goods on sale at Walmart every day. He advised businesses to gain access to the US market through representative offices and branches of giant retail groups in Vietnam.

At present, Walmart and Target have established branches in HCM City, he said, noting that such retail groups often pay greater attention to issues such as salary, working hours, welfare, environmental protection and, training activities for workers.

For example, retail giants set up standards and regulations for suppliers such as the design of emergency exit doors, interior paths, and greenery in factories.

Inspections are conducted by the retailers after every six months to check if the products have met the requirements for export to their supermarkets.
Vietravel wins big at Tour Travel Awards 2018

Vietnamese tour operator Vietravel has been named  “Asia’s Leading Tour Operator 2018” and “Vietnam’s Leading Tour Operator 2018” by the World Travel Awards (WTA) for the sixth consecutive year. 

The honour was presented at a ceremony held in Hong Kong (China) on the evening of September 3. 

Nguyen Quoc Ky, Chairman and General Director of Vietravel, said the award has encouraged the company to create breakthroughs and affirm its leading position in the domestic tourism sector as well earn the title of Asia’s leading tour operator. 

At present, Vietravel has more than 40 offices and branches nationwide as well as in some foreign countries such as Cambodia, Thailand, and the US. The company plans to continue opening representative offices in other countries.

Established in 1993, the World Travel Awards, known as “the Oscar of the travel industry” by the Wall Street Journal, have been annually held to honour the best service providers in the fields of travel and tourism. –VNA

Second Vietbuild 2018 to be held in capital city

The Vietbuild Hanoi 2018: International Exhibition (Phase 2) will take place at the National Exhibition Construction Centre and Hanoi Museum from September 6 to 10.

The information was revealed at a press conference in Hanoi on September 4.

The exhibition will feature 1,500 booths with new products and advanced technologies in the fields of real estate, construction, and construction materials.

Nearly 400 businesses, including 261 domestic companies, 75 joint venture firms, and 65 foreign enterprises from 24 countries and territories – such as France, the US, Russia, Turkey, India, Italy, the UK, Australia, Germany, Japan, Thailand, Indonesia, Singapore, and China – are expected to join the event.

Jointly held by the Vietnam National Real Estate Association and the VNREBUILD Real Estate International Exhibition Organisation Co., the event has been divided into three phases. 

The first took place from March 28 to April 1 with 1,700 pavilions of nearly 500 businesses from 18 countries.

The third phase is due to be held at the end of the year.

Substantial reforms needed to adapt to Industry 4.0

With the Fourth Industrial Revolution (Industry 4.0) in full swing, many countries – including Vietnam – are in the midst of a new technological wave that not only creates opportunities, but also brings challenges to the local government, businesses, and consumers.

Industry 4.0 will enable Vietnam to boost labour productivity, improve information connectivity, save costs, and much more, however the Government and private companies must also be ready to undergo some substantial reforms in order to stay abreast of these changes. 

In Vietnam, revenue from e-commerce was valued at US$900 million in 2016 (a surge of 50% from the previous year) and is likely to mount to US$5 billion by 2020 (with annual growth of 35%) – 2.5 times higher than that of Japan and a global high score, according to Le Quoc Huu, Chief ICT Architect for Smart City at Viettel Telecom Corporation.

However, the Fourth Industrial Revolution will also trigger a fierce competition among domestic and foreign enterprises, said Huu. The biggest barrier for Vietnamese firms is the lack of skilled workers, especially in the ICT sector.

Most firms are small- and medium-sized enterprises, with very small household businesses accounting for more than 31% of the country’s GDP. They tend not to have experience or innovation to adapt to the digital economy, not to mention their limited financial and corporate management capability, he noted. Another challenge remains in the country’s overwhelming cash-payment popularity which will not be easy to change.

Industry 4.0 also poses greater cybersecurity and other non-traditional threats which can result in an increase of transnational high-tech crimes. It requires proactive response and control from the Government to ensure privacy for people and security for the country.

At a recent summit themed “Vision and Development Strategy in Industry 4.0”, Prime Minister Nguyen Xuan Phuc affirmed that the Government of Vietnam is committed to developing long-term policies to make use of opportunities from Industry 4.0 and lessen its unwanted effects.

He urged the business community, ministries, state agencies, and people to take practical steps to boos the country’s digital economy and smart industry which is key to the national economic restructuring and growth model transformation driven by improved productivity, efficiency, and competitiveness. 

Great potential for Nha Trang cruise tourism

The South-Central coastal province of Khanh Hoa’s Nha Trang City has great potential for cruise tourism development.

In the first six months of this year, the province welcomed 3.2 million tourists, including 1.5 million foreigners, up 60% on-year. However, those who came to the locality by cruise was estimated at around 50,000 only. 

Nha Trang City is home to a deep-water port with four wharves which can receive cargo ships of 20,000 DWT and cruise ships of 60,780 GT. The port has diversified supporting services.

Under the Vietnamese seaport development plan until 2020, Nha Trang Port would be able to service international cruises of from 100,000 GT. The plan has been carried out by a local firm.

Last year, the port received 61 international cruises with a total number of 103,000 passengers compared to just 49 cruises with 53,000 people in 2015. Next year, the tourist number is expected to be higher.

Nguyen Thi Le Thanh, deputy director of Khanh Hoa Province’s Department of Tourism, said that Cam Ranh Port welcomed 11 cruises with 17,800 travellers in 2017.

At a recent conference on Khanh Hoa tourism development, Tran Hung Viet, chairman of HCM City Tourism Association and General Director of Saigontourist, said that the province attracted many tourism projects thanks to its abundant advantages.

He, however, suggested that Khanh Hoa needs to upgrade wharves and raise the capacity of tour guides. The locality also needs to have more attractive tourist sites, instead of just focusing on popular ones such as Long Son Pagoda and Ponagar Temple Tower.

A representative from Tictours Nha Trang Company said that the city needs to improve tourism service quality as well as the urban hygiene.

According to Thanh, this year, Khanh Hoa has considered adding more regulations on cruise tourism. The province will pay more attention to promoting local tourism products. Tran Son Hai, deputy chairman of Khanh Hoa People’s Committee admitted poor investment in local tourism promotion.

Economists: Vietnam should grasp opportunities in Africa

Economists in Africa have suggested that Vietnamese firms need to actively navigate African markets, including Ethiopia and Egypt, which are willing to welcome them to do business. 

Consultant Ali Ahmed from Egypt’s EHAF Consulting Engineers said upgrading infrastructure is an important part of development strategies in many African countries. They also need huge resources, especially in finance, to invest in infrastructure, energy, agriculture and other fields to speed up economic growth and generate jobs. 

On prospect of Vietnam – Egypt ties, he said favourable political and economic conditions will open up more opportunities for their businesses. 

He advised Vietnamese firms to narrow cultural differences when it comes to accessing African markets, and to join exhibitions, fairs and trade promotion activities in the region. 

Head of the procurement office from Egypt’s CNE company Ihab Mohamed Samy said the recent visit by President Tran Dai Quang to the country opened up new opportunities in trade and industry for the two countries’ economic sectors. 

The two countries’ authorities should make it easier for enterprises to meet and update information via events held by their chambers of commerce and industry, as well as enhance cultural exchanges to raise mutual understanding, he said. 

According to him, many made-in-Vietnam goods have become popular in shopping malls in Egypt, especially apparel, footwear, aquatic products such as tra and basa fish, and mobile phones. However, most of them are sold by global or multinational corporations instead of Vietnamese firms. 

He urged Vietnamese authorities to offer all possible support to allow Egyptian goods to enter Vietnam to balance trade, and suggested the work should focus on agriculture, infrastructure and tourism. 

Statistics from the General Statistics Office show Vietnam’s exports to Egypt reached 321.11 million USD last year, up 9.6 percent annually, accounting for 14.7 percent of Vietnam’s total exports to Africa. 

According to the Vietnamese Trade Office in Egypt, the African country invested in three projects worth 2.05 million USD in Vietnam as of late 2017. Though Vietnam is yet to invest in Egypt, it has a trade surplus with the country. 

Egypt’s demand for imports is forecast to keep increasing while international financial institutions and credit ranking agencies offer a positive outlook for the Egyptian economy in the medium term thanks to economic reforms, creating opportunities for investors worldwide, including those from Vietnam.

Vietnam’s tea exports fall both volume and revenue

Vietnam’s tea exports in the first eight months of 2018 dropped 10.1 percent year on year in volume to 81,000 tonnes, and 7.4 percent in value to 133 million USD, according to the Ministry of Agriculture and Rural Development (MARD).

Pakistan was the largest consumption market of Vietnamese tea with export value of 37.3 million USD, 33.6 percent of the total. It was followed by Taiwan (China), Russia, China, Indonesia and the US, with respective values of 15.6 million USD, 12.8 million USD, 9.5 million USD, 5.4 million USD and 4.3 million USD. 

Notably, the export of tea to Pakistan in the first seven months of 2018 increased 1,500 tonnes or 9.7 percent compared to the same period last year. 

Export volume to Taiwan (China), China, Malaysia and the US also respectively  rose 4.8 percent, 6.1 percent, 16.2 percent and 7.1 percent. 

However, strong falls of tea export were reported in Russia and Saudi Arabia in the January-July period, dropping 1,300 tonnes or 13.2 percent and 2,000 tonnes or 60.9 percent, respectively. 

The Department of Farm Produce Processing and Market Development under the MARD said domestic tea enterprises are facing difficulties caused by the trade war between the US and China. 

It is necessary to have policies to support domestic tea firms in accessing capital and investing in technologies for intensive processing of tea products, the department said. 

Attention should be also paid to devising measures to increase domestic consumption of tea, and diversifying tea products, especially organic and specialty products, towards increasing added value, it noted.

PM provides solutions to boost production, exports     

Prime Minister Nguyen Xuan Phuc requires ministries, sectors and localities to reform their institutions, simplify administrative procedures, cut costs and remove barriers to export.

This is part of the Prime Minister’s Directive No 25/CT-TTg dated on Friday on a number of tasks and solutions for production development and export promotion.

The directive states that in the past years, export activities have seen strong growth, rising an average of 13.5 per cent per annum over the past two years. The trade surplus is maintained in both 2016 and 2017.

In particularly, exports in 2017 achieved high results in terms of scale and growth rate as it’s the first time Viet Nam’s export value exceeded US$200 billion, an increase of 21.2 per cent compared to 2016, which is seen as the highlight of the country’s economy. However, there are still many difficulties and challenges facing the country.

In order to bring into play the results achieved, overcoming shortcomings and promoting exports fast and in line with tasks and solutions of the 2011-20 Export-Import Strategy, Phuc wants ministries and sectors to promptly review a number of regulations on production and import of raw materials and auxiliary materials for production and processing to create favorable conditions for production activities of enterprises. At the same time, it’s needed to strengthen information work to orient the production for export.

The Ministry of Industry and Trade (MoIT) will direct the Vietnamese Trade Office system in overseas markets to enhance the initiative in capturing market information and arising problems affecting Viet Nam’s exports such as policy changes of importing countries, technical barriers, payment risks and unwanted propaganda activities for Vietnamese exports. All information will be sent to the Government, ministries, sectors, associations and enterprises to respond promptly.

Phuc pointed out the need to promote the restructuring of agricultural production in line with the market demand, improve the quality and meet the requirements of food safety.

“The ministries and sectors must focus on solutions to remove difficulties in order to boost the export of agricultural commodities such as seafood, vegetables, coffee, cashew, pepper, rice and cassava,” Phuc said in the directive.

The development of industrial production must be in association with specific conditions of each region and each locality as well as the development of scale and high technology. Meanwhile, it’s necessary to concentrate on solutions to remove difficulties for the export of valuable industrial goods such as of textile, footwear, electronics, wood and wood products.

The Prime Minister also asked ministries and sectors to enhance negotiation and integration to develop the market and remove barriers to penetrate new markets as well as strengthening the trade promotion and brand building.

“MoIT will be in charge of studying the comprehensive renewal of trade promotion activities such as skill training, but reducing activities such as organising fairs and exhibitions or participating in fairs and exhibitions. It’s needed to focus on medium- and long-term trade promotion programmes that target one commodity and one market until reaching concrete results,” stated the PM directive.

The ministry will also attach great importance to training and dissemination of rules of origin and how to meet the rules to help businesses capture the opportunities opened up from free trade agreements.

“It’s needed to promote branding for products and export enterprises through the national branding programme in the key and potential markets of Viet Nam and focus on branding for key industries such as textiles, seafood and fruit.”

Phuc also asked industry associations to promote market information for their members in order to increase their activeness and prevent risks when the markets fluctuate, promoting information to members on modern management models, the importance of improving design and diversification of products, improving quality and creating branded products for export.

Associations should promote their role in linking businesses as well as being representatives to protect the legitimate rights and interests of businesses in international trade. They should perform well their role in the combination between the State management agencies and enterprises and assist the State in organising training and use of labourers after training. 

Export price of Vietnamese pepper down 62 per cent     

The average export price of Vietnamese pepper fell by 62 per cent year-on-year in the first eight months of 2018 to around US$3,330 per tonne following a dip in the global market, according to the Ministry of Agriculture and Rural Development.

The ministry forecast the export price of Vietnamese pepper as well as global pepper prices were unlikely to recover this year due to low demand and upcoming harvests in major pepper producing countries such as Indonesia, Malaysia and Brazil.

Viet Nam exported 20,000 tonnes of pepper in August, earning $58 million, bringing total pepper export volume to 173,000 tonnes and value to $576 million in the first eight months of this year, reported bnews.vn.

Pepper exports in the first eight months rose 3.2 per cent in volume but dropped 36 per cent in value over the same period last year.

The major export markets for Vietnamese pepper were the US, India, Pakistan, Germany and the United Arab Emirates. Export volume to most markets increased sharply while value declined.

In the domestic market, pepper prices in August dropped close to production costs. The price of black pepper at the end of August ranged from VND47,000 to VND48,000 per kilo, down VND4,000 to VND5,000 per kilo from July. At this price, many farmers are operating at a loss. 

Workshop considers next steps in solar power development

Promoting rooftop solar power is one of the solutions to address the imminent shortage of power, experts told a recent workshop in HCM City.                       

The Ministry of Industry and Trade (MoIT) expects a power shortage in 2021-22, and warned that if demand is higher than its forecast, the situation could be worse than it fears.

The workshop was held by the Việt Nam Sustainable Energy Association (VSEA) and the Climate Change Working Group to review the implementation of Decision No 11 and Circular No 16 on developing solar energy during the past year.

The Prime Minister’s Decision No 11 last year on encouraging the development of solar power provides for various incentives to investors.

MoIT’s Circular 16 regulates development of solar power projects and standardises power purchase agreements for solar projects.

Việt Nam is a country with huge solar potential, but the biggest project so far only has a capacity of 1.06MWp.

MoIT’s Department of Electricity and Renewable Energy said in the last one year investors proposed to set up 286 solar plants with a total capacity of around 19,300MWp.

They include plants with 4,250MWp capacity in Bình Thuận, 3,700MWp in Ninh Thuận and many others in provinces such as Đăk Lăk, Khánh Hòa, An Giang, Long An, Bến Tre, and Sóc Trăng.

Antoine Vander Elst of the EU Delegation to Việt Nam, said renewable technologies are nowadays more reliable and cheaper than fossil fuel technologies, especially taking into consideration things like climate change, environmental protection and health.

“Renewable energy contributes to enhancing energy security and provides lot of job opportunities.”

Thanks to the extensive development of renewables in Europe and elsewhere, production costs have decreased dramatically in the last few years, he said.

The EU has 2.2 million people working in the renewable energy sector, spread over 90,000 enterprises across 28 countries, he said.

Trần Phước Hiền of the Quãng Ngãi Province Department of Industry and Trade said there are still many shortcomings in implementing the decision and circular related to land acquisition and compensation, tax regulations, setting up projects in mountainous areas, lack of investment, and co-ordination between various departments and sectors.

Some experts expressed fears that climate change could affect weather patterns making rooftop solar power unreliable.

Delegates discussed how to draw up an efficient solar energy policy in the country, and suggested adjustments to Decision 11 with respect to tax on rooftop solar power panels.

The workshop, part of activities during the 3rd Renewable Energy Week from August 21 to 26, is one of five major events being held in Hà Nội, HCM City and Cần Thơ, while there are also 18 other smaller events across the country.

The annual event aims to raise public awareness of the feasibility and benefits of renewable energy and call for concrete actions, and launch the “Million Green Houses for Vietnam’s Prosperity” concept.

Đặng Quốc Toản, director of GreenAsia, said HCM City is expected to lead in developing the concept.

Cần Thơ targets agricultural growth of 3.2 per cent per year

The Mekong Delta city of Cần Thơ targets an agriculture growth rate of 3.5 per cent each year in the 2018-20 period and 2.5 per cent in the 2021-30 period.  

Under the city’s agricultural restructuring plan, the city targets increasing per capita income in rural areas by two times against 2015.

It also estimates that agricultural labourers will account for 30-35 per cent of the city’s labourers in the 2018-20 period.

Speaking at a seminar held on Wednesday, Nguyễn Ngọc Hè, director of the city’s Department of Agriculture and Rural Development, said the plan would improve the quality and competition of the city’s agricultural products in the delta and the country.

The plan will develop key agricultural products and concentrated agricultural production areas with high technologies, he said, adding that it will also develop value chains from production to sales, he said.

The plan will develop high quality strains of plants and animals to supply to the city and other provinces in the delta.

To meet the plan’s targets, the city will set up high-quality large-scale rice fields, clean vegetable planting areas, urban agricultural models and specialty fruit areas, along with ecotourism services and standard aquaculture areas.

From now to 2020, farmers will be guaranteed sales outlets for their crops as well as their aquatic species and animals on around 100,000ha. 

The city will also transfer 25,000ha of ineffective rice fields to other crops as well as aquatic species.

Irrigation systems will be upgraded, floods will be controlled on 90 per cent of agricultural land.   

Up to 75 per cent of rice fields will use certified seeds and machinery for irrigation, harvesting and drying of rice will reach 50 -100 per cent.

The city will build three high-tech agricultural zones at the Agricultural Seed Centre in Thới Lai District, the Sông Hậu Farm and the Cờ Đỏ Farm in Cờ Đỏ District.

Trương Quang Hoài Nam, deputy chairman of the city’s People’s Committee, has asked agencies to develop high-tech and clean agriculture, as well as specialty agricultural products.

In 2013, Cần Thơ launched its agricultural restructuring plan and achieved an average growth of 3.2 per cent a year over the past five years.

The average income for crop cultivation is now VNĐ32.5 million (US$1,400) per ha annually, up 7 per cent against 2013, and for aquaculture, VNĐ99.7 million ($4,400), up 9.2 per cent against 2013.

The city has 238 agricultural co-operatives.

Experts discuss shrimp demand     

Viet Nam’s supply capacity to 2025 to fulfill global shrimp demand is sufficient but the industry still faces challenges, speakers said at a conference held in HCM City recently.

Ho Quang Luc, former chairman of the Viet Nam Association of Seafood Exporters and Producers (VASEP), noted that Viet Nam has a large area of 700,000ha for shrimp farming.

“Due to favourable weather, Vietnamese farmers can raise shrimp all year round,” he said, adding that local farmers’ skills exceed the global average.

“Viet Nam also has great processing potential, with nearly 100 shrimp processing factories, generating about 500,000 tonnes of products every year,” he added.

Despite its potential and support from the Government and Ministry of Agriculture and Rural Development (MARD), shrimp farmers still face poor infrastructure, low-quality shrimp breeders and high farming costs, among others.

“It is necessary to have a detailed farming plan, adequate investment in infrastructure, a national parent-shrimp production programme, and strict control of the shrimp supply system,” Luc recommended.

Hoang Tung, an expert at the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in Australia, addressed issues surrounding the Government plan that targets all steps of the value chain and an export turnover target of US$10 billion in 2025.

Tung said the Government should place emphasis on higher-quality inputs, improvement of farming and harvesting, and innovative business models. This would ensure higher productivity, lower production costs and increased domestic consumption, he said.

Tung hoped that the Lower Mekong Initiative, which aims to transform the livelihoods of 10,000 households via more sustainable shrimp farming between 2019 and 2029, would be carried out efficiently.

The initiative is a collaborative project between CSIRO, MARD and the Ministry of Science and Technology.

Experts at the conference also spoke about the world shrimp market and the gap in supply and demand, consumption trends, competitiveness of Vietnamese shrimp in the EU market, and analysis of export competitors.

This conference is part of the Viet Nam Fisheries International Exhibition 2018, being held in HCM City from Tuesday to today. 

VN firms told to learn from Hong Kong     

Vietnamese companies can learn from their Hong Kong counterparts about doing business on an international level at the “In Style Hong Kong” trade promotion next month and leverage that knowledge to expand globally, a media briefing on the event heard in HCM City on Thursday.

Organised by the Hong Kong Trade Development Council (HKTDC), the fourth edition of Hong Kong’s biggest overseas trade promotion will be held in HCM City on September 20 and 21.

It is the first time the event will be held in Viet Nam after earlier events in Indonesia, Thailand and Malaysia.

According to Peter Wong, HKTDC regional director of Southeast Asia and South Asia, Hong Kong has many advantages such as being named the freest market in the world for 24 consecutive years by Washington DC-based think-tank Heritage Foundation, an international financial hub and located close to four key Asian markets.

It is very easy to set up new businesses there and the tax system is simple without VAT and sales taxes, he said.

Hong Kong has vast knowledge and experience of doing business in mainland China and other international markets, and can play the role of trade facilitator and offer the platforms for Vietnamese businesses to enter global markets.

The two-day trade promotion will feature a wide range of activities including a full-day symposium on business services with a focus on cross-border logistics and creative branding and design.

Tina Phan, Indochina director of HKTDC, said the symposium is expected to attract around 1,000 Vietnamese businesses.

Besides, there will be an expo showcasing a wide array of branded and designer-led lifestyle products from Hong Kong companies, who will be hoping to tap into new business opportunities in Viet Nam and nearby countries.

According to HKTDC, Viet Nam is Hong Kong’s largest export market among ASEAN member countries and sixth largest export market globally, with exports to the country amounting to US$10.2 billion last year.

Viet Nam is Hong Kong’s 10th largest trading partner.

Wong said trade between Hong Kong and Viet Nam is increasing and would expand further in future with the newly-signed Hong Kong-ASEAN Free Trade Agreement.

It takes effect on January 1 next year, allowing both economies to enjoy freer trade in goods, services and investments.

Wong told Viet Nam News that Viet Nam has a good record when it comes to stability compared to some of its neighbours and that is a great advantage in attracting foreign investors.

The stability and commitment of a government are most important for investors, he said.

“If [two] countries have the same opportunity, of course people will go to a more stable and more committed country because the risk will be lower.”

But at the same time the Vietnamese Government should do more to convince investors their rights and interests would be protected, he added.