Foreign business owner returns home, leaving huge debts
The People’s Committee of the southern province of Ba Ria-Vung Tau instructed the Department of Labor, Invalids and Social Affairs to work with authorized agencies to solve problems of steel company Quatron which debt hundreds of billions of dong of wage and premium after its foreign owner get out of the country.
The province granted investment certificate to the foreign invested company in early 2008 to design, process and assemble steel structural products.
Legal representative Dasagi Vijaya Bhaskara Rao has left home while the man working for the company as director general has not appeared.
By the end of October last year, Quatron owed 400 workers overVND2.7 billion (US$119,000) in wage and VND15 billion ($660,000) social insurance premiums. In addition, the company has yet to pay VND1.2 billion in tax arrears and overdue loan interest.
The 80,000 square meter factory the company hired has been mortgaged for bank loans with the total amount of US$3 million.
592 products win high quality Vietnamese goods brand names
Business Studies and Assistance Center (BSA) last night granted certificates of high quality Vietnamese goods brand names 2017 to products of 529 businesses at a ceremony attended by chairman of the HCMC People’s Committee Nguyen Thanh Phong and agency representatives.
At the event, BSA also praised enterprises and entrepreneurs for their performance of social responsibility and contributions to improving the competitiveness of Vietnamese goods.
Among the winners of the award voted by consumers are Minh Long 1, Co May, Vinamit, Biti’s and others. Of these, 40 businesses have been certificated for 21 consecutive years.
Ms. Vu Kim Hanh, chairwoman of the High Quality Vietnamese Goods Association, said that the association started building a set of norms on high quality Vietnamese goods in 2017 providing businesses an extra of competitiveness advantage.
Price for natural rubber latex strongly increases
The price trend for fresh natural and finished rubber latex has strongly increased since the end of 2016.
Particularly, a kilogram of natural rubber latex is currently purchased at VND 12,500, an increase of VND 2,200 in Dong Nai province.
Meanwhile, the Loc Ninh Rubber Company in Binh Phuoc province posted up its rubber latex price at VND 17,400 a kilogram and dry elastic price being at VND 15,400 a kilogram.
The Phuoc Hoa Rubber Company also buys finished rubber latex with VND 53,000 per kilogram, doubling that in midyear of 2016 and increasing by 10-13 percent compared to the two previous months.
The output reduction has made the world rubber price to increase by 20 percent compared to the bottom level in June, 2016.
The increase of rubber price is due to long–lasting rainy season which caused output reduction in Thailand who had held nearly 40 percent of the world natural rubber in the end of 2016.
Mekong Delta harvests winter spring rice, sell at good prices
Farmers in the Mekong Delta have entered the peak harvest time of winter spring rice crop since March, enjoying good prices.
At present, a kilogram price swings from VND4,900-5,300 depending on wet or dry rice, up VND300-400 on average compared to before the Tet holiday.
With the cost price of VND3,700-3,800 a kilogram this crop, farmers will earn a profit of about 30 percent if selling price tops VND5,000 a kilogram.
The Mekong Delta cultivates 1.5 million hectares of winter spring rice with the output estimated to reach 11 million tons.
Creating favourable conditions for rice exports
Vietnam earned US$248 million from exporting 799,000 tonnes of rice in the first two months of 2017, down 40.6% in value and 17.2% in volume compared to the same period last year, according to the Ministry of Agriculture and Rural Development.
These sharp declines are making it more difficult for the target of exporting over 5 million tonnes with a value of approximately US$2.3 billion in 2017 to be achieved, particularly as fluctuations in the export market are seriously affecting the domestic rice industry.
Regarding Thailand’s plan to sell all its rice reserves of about eight million tonnes this year, experts all stated that the move, if it comes true, will lead the rice export prices to continue falling sharply, thereby posing difficulties to the production and consumption of rice of the winter-spring crop, which is considered the major production crop of the year in Vietnam.
Only when Thailand’s rice inventories are definitely handled, can the rice export market probably recover, they noted.
In addition, the rice stockpiles in the world are now at a high level, while a number of traditional rice-importing countries have been effectively implementing the policy of food self-sufficiency, limiting and even ending rice imports. Notably, as competition is getting fiercer with the increasing number of commercial and technical barriers put up by importing nations, it is becoming increasingly difficult for Vietnamese rice to penetrate into markets with a demand for high quality.
Apart from objective reasons, subjective factors inside the country are also making 2017 a possibly tough year for Vietnam’s rice exports. According to businesses, all requirements, ranging from storage capacity, the capacity of milling facilities, venues for warehouses and mills and material zones, to new licenses and documents required for the registration of export contracts in the government’s Decree No. 109/2010/ND-CP on rice export business, are only formalistic and do not suit the current situation.
At a recent workshop on directions for amending /the decree, the Vietnam Institute for Economic and Policy Research (VEPR) stressed that the revision of Decree No. 109 must have the aim of creating the best possible conditions in which for enterprises to participate in rice exports and of reflecting the diversity of the market. In reality, a number of businesses have their own markets and products of high quality and value, but do not satisfy the requirements set out in the decree. Therefore, if “untied,” those enterprises will lose export opportunities and the rice industry will hardly move up in the value ladder.
In 2016, Vietnam’s rice exports only hit more than 4.8 million tonnes with an export value of nearly US$2.2 billion, down 25.8% in volume and 21.2% in value compared to 2015. Also last year, the Vietnam Food Association (VFA) had to lower the rice export target twice due to difficulties. Given the negative signals in the first two months of the year, it is necessary for stakeholders to promptly remove obstacles and make relevant policy adjustments aiming to empower businesses and lead rice export output and value to meet expectations.
Vietnam learns from Japan’s experience in supporting SMEs
The Ministry of Planning and Investment on March 2 hosted a workshop to learn experience from Japan in supporting the development of small- and medium-sized enterprises (SMEs).
According to Deputy Minister of Planning and Investment Dang Huy Dong, Vietnamese SMEs are facing many difficulties and fierce competition in the context of international integration.
He said that the workshop offered a good chance for Vietnam to study Japan’s experience, towards providing more effective assistance to its enterprises and promoting cooperation between the two countries.
Hiroshi Arai from the Bureau of small- and medium-sized enterprises under Japan’s Ministry of Economy, Trade and Industry underlined the pillar role played by SMEs in Japan’s economy.
Japan has paid special attention to building policies and mechanisms to support SMEs, and achieved remarkable results, he stressed.
When any Japanese decide to start business, they will receive consultations related to administrative procedures, legal regulations, production organisation and technology application, and financial plan building, he added.
Japan’s authorized agencies have also worked to help SMEs carry out modernization, improve the quality of products and competitiveness, and increase export.
Japanese SMEs have also been assisted in training and updated market information, he noted.
Participants mentioned weaknesses of Vietnamese SMEs, especially in management and technology application.
They suggested the Government and relevant ministries and sector intensifying assistance, especially for those operating in the support industry.
Japanese experts said if SMEs develop sustainably, they will be key providers of jobs.
The Ministry of Planning and Investment has planned to summit a draft law on supporting SMEs to the Government, towards laying a foundation for effectively assisting SMEs in the future.
RoK’s 100-million-USD project launched in Bac Ninh
The People’s Committee of northern Bac Ninh province on March 2 granted an investment licence to a project worth 100 million USD of the Hanwha Techwin Security Company from the Republic of Korea.
The project, which specialises in manufacturing electronic circuits, semiconductors, chips, computers and cameras, will be built on an area of six hectares in the Que Vo Industrial Park of Bac Ninh province.
Bui Hoang Mai, head of the Bac Ninh Management Board of Industrial Parks, said that in 2015-2020, the province has given priority in electric, electronic and mechanical manufacturing sectors. He expressed his hope that the new project will generate more jobs for local workers, contributing to the local socio-economic development.
Chairman of provincial People’s Committee Nguyen Tu Quynh affirmed that Bac Ninh will create optimal conditions for investors.
Yang Jinseol, a representative of the company, pledged to promptly build the factory and put it into operation as scheduled.
In the first two months of this year, Bac Ninh attracted 2.7 billion USD in foreign direct investment (FDI). On February 24, it granted an investment licence for Samsung Display Vietnam Limited Company’s 2.5 billion USD expansion project.
As of February 2017, industrial parks in Bac Ninh province attracted 1,086 projects with registered capital of 15.87 billion USD, including 659 FDI projects worth 14.13 billion USD. Those projects created jobs for more than 230,000 workers and contributed seven trillion VND (306.7 million USD) to the State budget in 2016.
Thua Thien-Hue promotes cooperation with Japan’s localities
The central province of Thua Thien-Hue has been stepping up cooperation activities with Japan’s localities across various fields.
The central province signed cooperation relationships with Nara Prefecture, Kyoto city, Gifu Prefecture in tourism, education and training, investment and trade.
Japan is the biggest official development assistance (ODA) provider of Vietnam and Thua Thien Hue in particular. The province currently has six ODA projects financed by Japan.
In tourism, Phan Thanh Hai, Director of the Hue Monuments Conservation Centre, said tourism cooperation between Thua Thien Hue and Japan has developed well in recent years.
In heritage preservation and renovation, Japan assisted Thua Thien Hue in preserving and restoring the Hue citadel’s palace buildings and tombs with the UNESCO Research Institute and some Japanese univerisities.
Seven Japanese foreign direct investment projects with combined investment of 30.4 million USD are in operation in Thua Thien Hue, creating thousands of jobs. The projects are mainly operating in food processing, garment, information technology, engineering.
According to the conservation centre, from 2010 to 2015, the number of Japanese tourists to Thua Thien Hue increased steadily to reach 25,118 in 2016.
Quang Ninh leads in “One Commune One Product” programme
Deputy Prime Minister Trinh Dinh Dung hailed the northern province of Quang Ninh for leading in the implementation of “One Commune One Product” (OCOP) programme and gaining significant outcomes in the field.
He made the compliments at a conference held by the Ministry of Agriculture and Rural Development and the provincial People’s Committee in Ha Long city on March 2.
The Deputy PM asked the agricultural sector to target the global market, expand highly-competitive products, and generate jobs for rural workers.
He called on local households to create products while businesses and cooperatives will buy the products and promote their brand names.
The government official requested improving the institutional system and building a new legal corridor for rural development as well as devising policies to develop rural occupations and preserve craft villages.
He also ordered to mobilize financial resources to develop non-agricultural economy in rural areas and encourage scientists to join the creation of high-value products.
Secretary of the provincial Party Committee Nguyen Van Doc highlighted local advantages in agriculture and shared experience in implementing the programme.
He noted that Quang Ninh has attracted 180 businesses to join the programme and implement 103 projects to support the manufacture of OCOP products.
As many as 210 products registered to join the programme, 99 of which met 3-5 star standards and 39 others received food security certifications.
The sales of OCOP economic organisations and manufacturing households reached over 672 billion VND (29.4 million USD).
The OCOP programme was initiated by the ministry in 2008. Quang Ninh was the first locality nationwide to implement the project from 2013.
Hai Duong lures 128.6 mln USD in foreign investment
Hai Duong attracted 128.6 million USD in foreign investment in the first two months of 2017, representing an 8.4-fold increase from the same period last year.
The provincial Department of Planning and Investment has reported that the figure included 89.2 million USD coming from seven new projects and the remainder being added capital of four existing projects.
The Red River Delta province also aims for the top 20 in terms of the provincial competiveness index in 2016-2020.
It aims to double the number of its enterprises by 2020.
In 2016, Hai Duong registered an economic growth rate of 7.9 percent. The province collected over 11 trillion VND (500 million USD) for the state budget and fetched 4.5 billion USD from exports.
The locality is now home to around 11,000 businesses and 339 foreign investment projects from 24 countries and territories.
It has established 18 industrial parks on a total area of over 3,000 hectares and devised a plan to develop 45 industrial clusters on over 2,000 hectares.
Coffee export soars in two months
Vietnam was estimated to ship 273,000 tonnes of coffee abroad for 616 million USD in the first two months of 2017, down 7.3 percent in quantity but up 22.3 percent in value compared to the same period last year.
Top importers Germany and the US accounted for 16 percent and 14.7 percent of the total Vietnamese coffee exports during the period, with shipments to Belgium, the UK, the US and Algeria increasing significantly.
Coffee products were sold overseas at an average price of 2,257 USD per tonne in January, up 30.2 percent year-on-year.
Do Ha Nam, deputy head of the Vietnam Coffee & Cocoa Association, said domestic coffee yield this year is expected to drop by 20 percent due to drought.
Growers tend to stock their goods in hope of higher prices, he added.
Nam also forecast a 30-percent reduction in coffee export due to material shortage.
In respond to the information that Brazil cancels import of Vietnamese coffee robusta, Nam said it causes little impact on Vietnam’s exports as the volume Brazil intends to import is not much.
Eurocham Whitebook released
The European Chamber of Commerce and the Vietnam Chamber of Commerce and Industry (VCCI) have jointly hosted the EU-Vietnam Economic Cooperation Conference “Eurocham Whitebook 2017 Launch and EU-Vietnam FTA Outlook”.
The 9th version of the Whitebook gives update information about Vietnam’s economic prospects, legal environment and business climate.
VCCI Chairman Vu Tien Loc says the book designates one chapter to analyze impacts of the EU Vietnam Free Trade Agreement on local businesses.
“The EU-Vietnam FTA is a major prospect for Vietnamese goods to enter a market of 28 member states, leveraging domestic institutional reform through high standard regulations on cross border trade. Further institutional reform is required to realize commitments stated in the document,” he said.
Eurocham Chairman Michael Behrens expected that the EU-Vietnam FTA could become a benchmark free trade deal in Vietnam’s globalization in the context of uncertain future of the Trans Pacific Partnership agreement (TPP).
Dairy product companies push to lift milk price cap
Dairy product companies are pushing for Vietnamese lawmakers to eliminate price ceilings for 25 powdered milk products for children under the age of six.
The Nutritional Foods Group (NFG), a non-profit, non-governmental representative body of six of the world’s leading multi-national dairy companies operating in Vietnam, said that since the price ceilings were given effect in May 2014, costs have skyrocketed.
This has resulted in catastrophic losses to companies in the segment. The price caps were also the reason that last year leading French based dairy Danone decided to exit the Vietnam market.
The price caps are also contradictory to the government’s policy of opening its markets in line with World Trade Organization commitments and guidelines argued the NFG, stating it would be better to let market forces determine the selling price.
Nguyen Anh Tuan, director of the Ministry of Finance Price Management Department, had late last year told reporters that the price ceilings would remain in effect through the end of 2016 and then the Ministry would be open to lifting them.
Seminar discussed SME support
Japanese and Vietnamese experts discussed support policies for small and medium-sized enterprises (SMEs) at a seminar hosted by the Ministry of Planning and Investment on Thursday in the capital.
Despite their role in Viet Nam’s socio-economic development, SMEs still encounter many difficulties including capital shortage, insufficient financial capacities and technological weakness, experts said.
The firms are also coping with harsher competition from foreign rivals as the country integrates deeply into the global economy, they said.
Experts suggested that the Government and relevant ministries and sectors should intensify assistance for SMEs, especially for those operating in the support industry.
According to Japanese experts, if SMEs developed sustainably, they would support the development of large-scale enterprises thanks to their sufficient supply of components and parts.
They added they SMEs could also be a key provider of jobs.
In his speech at the event, Hiroshi Arai from the Small- and Medium-sized Enterprises Agency under Japan’s Ministry of Economy, Trade and Industry spoke highly of SMEs’ key role in Japan’s economy.
Japan has paid special attention to building policies and mechanisms to support SMEs, and achieved remarkable results, he said. When any Japanese citizens decide to start businesses, they will receive consultations related to administrative procedures, legal regulations, production organisation and technology application, and financial planning, he added.
Japanese SMEs have also been assisted in training and on updated market information, he noted.
Meanwhile, Deputy Minister of Planning and Investment Dang Huy Dong emphasised the importance of studying Japan’s experience, towards providing more effective assistance to its enterprises and promoting co-operation between the two countries.
Viet Nam and Japan have reached an agreement on a series of actions to tackle issues related to SME support. From now to the end of the year, the two sides will continue to co-operate on conducting surveys around activities such as financing to expand investment, technology transfer and personnel training.
Japan will also assist policymakers in drafting the law on SMEs and collaborate with Viet Nam to organise conferences on policies to support SMEs.
Total outstanding loans up in HCM City
Total mobilised capital of credit institutions in HCM City in the first two months of the year was estimated at VND1.78 quadrillion (US$78.03 billion), an increase of 0.31 per cent over the end of 2016 and up 13.18 per cent over the same period last year, according to the State Bank of Viet Nam’s HCM City branch.
The amount in Vietnamese dong was worth VND1.56 quadrillion, accounting for 87.5 per cent of the total mobilised capital. The rest was in foreign currency.
Total outstanding loans were estimated at nearly VND1.49 quadrillion, up 1 per cent and 19.7 per cent over the end of last year and the same period last year, respectively.
The bank said this was a good growth rate compared to previous years.
The central bank said that medium- and long-term lending accounted for 56.7 per cent of the total outstanding loans, an increase of 0.94 per cent over the end of last year.
Short-term loans accounted for 43.3 per cent, up 1.08 per cent from the end of 2016.
The bank also reported a total of VND147 trillion in short-term outstanding loans in Vietnamese dong to five priority sectors (agriculture and rural development, production of export goods, small- and medium-sized enterprises, supporting industries, and high-tech enterprises).
Loans given to SMEs accounted for nearly 65 per cent, reaching VND95.05 trillion of total loans to five priority sectors.
UD Trucks unveils new Croner
UD Trucks on Wednesday launched Croner, an all-new medium duty truck, to continue its legacy of building the “truck that the world needs today” Tokyo.
The truck was launched specifically for the company’s growth markets across Asia, Africa, the Middle East and South America.
Croner is a reliable and versatile truck range built with robust and quality components delivering extra productivity and superior uptime. It is engineered to help customers stay ahead of the competition through the simple concept of saving time.
The truck is designed to excel in the medium-duty segment to compete in growth markets.
It has options for three gross vehicle weight (GVW) models: MKE, LKE and PKE; and their wheelbase variants, which can offer up to 21 different basic configurations to suit specific demands of various industries.
Sustainable solutions sought for declining banana sales
Già Hương and Cấy Mô bananas in Đồng Nai Province have been ready to harvest since February, but traders, mostly in China, have stopped importing the fruit.
At a forum on sustainable consumption of bananas, Hoàng Thị Bích Hằng, chairwoman of the Farmer’s Union in the province, said that bananas are grown on 700 hectares, mostly in the districts of Trảng Bom, Thống Nhất, Định Xuân and Long Khánh.
Bơm and Sứ bananas are sold for VNĐ5,000-VNĐ7,000 per kilo, Hằng said.
“These kinds of bananas have not faced problems in sales because enterprises in the province buy them to dry for export,” she said.
However, Già Hương and Cấy Mô bananas have not been selling. Their prices have fallen to VNĐ1,000 to VNĐ1,200 (4 to 5 US cents) per kilo, she added.
In the same period last year, the prices were more than VNĐ10,000 per kilo because the demand from China was high. At the end of 2015, bananas in China could not grow because of cold weather.
At that time, many Vietnamese farmers saw higher prices for Già Hương and Cấy Mô bananas compared to Bơm and Sứ bananas so they did not want to plant the latter. Instead, they cut trees and planted Già Hương and Cấy Mô.
According to economists, the demand from China since February has been not high because banana cultivation there has recovered.
Prior to the low sales, the provincial agencies had worked with many organisations and associations in the province and HCM City to help farmers.
Big C on March 2 launched its “No Profit Đồng Nai Banana” campaign.
The leading supermarket chain will purchase 100 tonnes of bananas, absorb transportation, logistics and marketing costs, and sell the fruit at retail prices at VNĐ5,900 per kilo at 15 stores around the country with all proceeds going directly to the farmers themselves.
Nguyễn Bách Việt of Sejong Việt Nam Company, which exports bananas to South Korea, said that he also wanted to help farmers in Đồng Nai Province.
In the upcoming days, he will visit farmers to check the quality of bananas and then look for traders in Korea to buy bananas, Việt said.
The Startups and Administration Club has worked with the Việt Nam Social Welfare Centre for Adolescents and universities to organise a campaign called Charity Banana since February 22.
After eight days, around 300 tonnes of bananas were sold to help farmers, but the number accounted for 10 per cent of the total real figure in the province.
In the Trảng Bom District alone, more than 4,000 tonnes are waiting to sell.
Đỗ Long, chairman of the Startups and Administration Club, said: “It is urgent to carry out the campaign now. However, the activities of volunteers are not a sustainable way to produce higher consumption.”
Long said that he had received calls from farmers in the provinces of Tây Ninh and Bà Rịa-Vũng Tàu for help.
Co-operation between enterprises, farmers, scientists and the government should be strengthened, he said.
Long said that he could call on associations with a large number of enterprises in this field to buy bananas from farmers.
Relevant agencies in districts with large areas of bananas will co-operate with authorities at industrial parks and export processing zones to buy bananas to be used as dessert served with lunches for their workers, he said.
Dr Phạm Thanh Duy of the HCM City University of Social Sciences and Humanities said that this was a chance for students to work as volunteers in the campaign as traders for bananas.
They could sell bananas which are verified to meet quality standards by the provincial Technical Centre of Quality Measurement Standards III to convenience shops, Duy said.
Phạm Thái Sơn, head of the centre for enterprises relations at the HCM City University of Food Industry, said the charity campaign could affect prices in markets, meaning that other traders not included in the campaign might find it difficult to sell bananas because prices could be higher than those offered in the campaign.
The school will work with other universities in the food industry and technology to research ways to process bananas into other products, Sơn said.
A student at the University of Food Industry is conducting research to use bananas in the processing of flour.
Local car maker, Hyundai begins mini bus manufacture project
The Korean Hyundai Motors and local Trường Hải Automobile Company (Thaco) have launched a mini bus manufacturing project with the total capacity of 10,000 units per year.
It’s the first-ever manufacturing project in Việt Nam to build a new Hyundai mini bus model for export.
The first Hyundai minis buses will roll out from Quảng Nam-based bus plant this year.
The bus model is the newest Hyundai model in the Vietnamese market, in co-operation with local car makers after series models of trucks, dump-trucks, buses and commercial cars were produced from 2011.
Thaco said it had invested over VNĐ2 trillion (US$88.5 million) to build a bus plant with total capacity of 20,000 seater/sleeping buses and mini-buses per year.
The nation’s biggest automaker plans to build three more plants with the total annual capacity of 215,000 trucks, vans, commercial cars, and achieve a localisation ratio of 16 per to 46 per cent.
Thaco has so far manufactured and distributed vehicles of three foreign brands: Kia of South Korea, Mazda of Japan and France’s Peugeot.
Electricity of Vietnam rounds off restructuring plan
The Electricity of Vietnam Group (EVN) has fulfilled all key objectives of its shake-up master plan for 2012-2015 approved by the Prime Minister on November 23, 2012.
In the four-year period, the group completed a decree on regulations on financial management mechanism and carried out the restructuring as well as production and business plans in five Electric Corporations and Power Transmission Corporations.
Throughout the restructuring process, EVN’s three power generation corporations have been operating smoothly.
Amid gloomy stock market, the group was still active in developing its divestment plan, organised public auctions as well as sought partners to transfer their capital in enterprises that needed to be divested. It completed divestment in six out of seven non-core enterprises.
Thanks to its rational organisation, EVN’s total member companies reduced to 38 from 88 units.
Throughout four years, the group played a vital role in stabilising the country’s macro-economy, providing public services and consolidating security and defence.
It also took the lead in an investment programme to light up rural areas and island districts, making contributions to eliminating poverty and giving a push to the building of new style rural areas. By the end of 2015, 98.88 percent of rural population had access to electricity.
To date, the group has taken responsibility for power production and import as well as management of transmission operation.
According to EVN Chairman Duong Quang Thanh, the group has ensured sufficient power for socio-economic development and gained robust business results.
He said that the group will make a beeline for accomplishing main tasks for the 2016-2020 restructuring plan, which include the equitisation of power generation corporations and retail enterprises. In addition, it will improve competitive capacity to meet demands of socio-economic development.
Canada boosts farm produce export to Vietnam
Canada expects to sell more quality and safe farm produce to Vietnam where the middle class is growing fast, it was stated by Canadian Minister of Agriculture and Agri-Food Lawrence Macaulay during his January visit to Vietnam.
Vietnam is currently Canada’s top trade partner among the 10 ASEAN member states, with farm produce, food and fisheries accounting for nearly half of Canada’s exports to the country, according to the Thoi bao Kinh te Viet Nam (Vietnam Economic Times) on March 2.
Canada’s key agricultural exports to Vietnam include snout otter clam, fresh lobster, oyster, cod, other kinds of cold-water fish, soya bean, wheat, oilseed, pork, beef, apple and cherry fruit, which amounted to over 196 million USD in 2016.
Macaulay’s January visit was part of the Canadian government’s efforts to extend trade in Asia-Pacific, thereby creating jobs and improving Canadian farmers’ income over a long term.
During a working session with Minister of Agriculture and Rural Development Nguyen Xuan Cuong, Macaulay expressed his wish to bring more lobsters to Vietnam and deliver the first shipment of blueberries soon.
As the world’s largest pork manufacturer, Canada also wants to cooperate with Vietnam in developing pig genes, he said.
He hailed Vietnamese coffee and seafood but suggested further improving production by adopting technological advances and adjusting products to suit consumers’ taste in each market.
According to him, Canada boasts a wealth of experience in technological renovation to manufacture high-quality, safe and low-cost products, as well as a strict law and inspection system to ensure product quality.
The guest informed that Canada will soon provide Vietnam with 15 million CAD for the “Safe food for growth” project and is working with the Vietnamese Ministry of Agriculture and Rural Development on this area.
Cuong, for his part, said Vietnam facilitates the import of high-quality pig breeds, and currently there are 35 importers of Canadian lobsters nationwide.
He added that trade potential between the two countries remains great because their goods are supplementary.
Vietnam attends Asia’s largest coffee and tea fair
As many as eight Vietnamese firms are showcasing their top quality tea and coffee products at the Café Asia and International Coffee and Tea Expo – the largest of its kind in Asia, which opened in Singapore on March 2.
The three-day event brings together 150 café owners and managers, coffee and tea exporters and importers as well as distributors and suppliers of café-related machinery and equipment in a dynamic marketplace. They are displaying their products in an area of 5,000 square metres.
According to Nguyen Viet Chi, Trade Counsellor of Vietnamese Embassy in Singapore, the fair creates opportunities for domestic enterprises to introduce their products as well as meet with potential partners in the region.
Chi highlighted that such international fairs helps Vietnamese businesses flesh out their product development by focusing on the protection of trademark as well as improvement product quality and brands.
Vietnamese exporters need to pay heeds to diversifying instant coffee products to match with consumers’ taste and bring higher export value, President of the ASEAN Coffee Federation (ACF) Victor Mah said, adding that with a total population of more than 600 million people, ASEAN is a large coffee consumption market in the region.
Trung Nguyen, Hello 5 and Liberica Gold are among the Vietnamese exhibitors who have branched out their products in Singapore for several years. Others businesses sent brochures, catalogues and samples to introduce their brands at the event.
On the opening day, a line-up of international visitors and businesses expressed their interests in Vietnamese coffee.
The event is expected to welcome over 10,000 visitors.
Vietnam’s love of gambling sends lottery sales skyrocketing
Vietnam is loosening its traditionally straight-laced attitude toward gambling having realized that the industry could stuff the nation’s coffers.
Vietnamese people spent about US$13 billion on lottery tickets from 2011 through 2015, helping the industry’s revenue to grow on average by 12% annually, according to a government agency.
The combined revenue from lottery companies in 21 southern provinces hit US$3 billion last year, a three-times surge from 2007, Bloomberg cited Vietnam’s Ministry of Finance as saying.
The new computerized lottery company Vietlott that began operating last summer has become the main rival to local state-run lotteries.
Vietlott, a joint venture with Malaysian conglomerate Berjaya, reported revenue of more than US$70 million last year. Its American-style game, called Mega 6/45, is the company’s first foray into the market and can be found in major cities of the country.
Each ticket costs VND10,000 (44 US cents) and players pick six different numbers from 1 to 45. To win the jackpot you have to match all six winning numbers from the prize draw. The jackpot grows by a minimum of VND12 billion per draw, and the prize will keep growing until there is a winner.
The country’s gaming industry is expected to grow further with the government set to relax its longstanding ban on casino gambling and allow locals to roll the dice at home, rather than traveling overseas for the buzz.
Additional foreign investment of US$3 billion into Vietnam’s casino businesses could increase gross domestic product by 0.58% in the first year, local media cited the Institute for Regional Sustainable Development in Hanoi as saying.
By some estimates, the policy change could add up to US$800 million in tax revenue to the state budget each year.
State-run lotteries were for years the only form of gambling allowed in Vietnam.
Since Vietnamese gamblers have no access to local casinos, they often cross the border into neighboring Cambodia where there are many gaming centers, mostly exclusive to Vietnamese players.
The three-year trial to remove the ban on locals in casinos is expected to make Vietnam a bright spot on the global gaming market as nearly 60% of its population is under 35, according to market research firm Nielson. The firm also expects the country’s middle class to more than double in size between 2014 and 2020, from 12 million to 33 million.
“It is true that Vietnamese people like the thrill and risk [of gambling],” Chinh Le, a VnExpress reader, said in a comment.
Quang Binh calls for investments in 70 projects
The central Quang Binh Province has called for investments in 70 projects in the period from 2016 to 2020. Of these, more than half are real estate projects.
The municipal People’s Committee has promulgated the Decision No 4263/QĐ-UBND on the list of projects calling for investment.
Accordingly, the projects will be in the sectors of transport (four projects), industrial park and urban area infrastructure (10 projects), tourism, trade and services (29 projects), healthcare and education (two projects), agro-forestry and industry and environment (18 projects).
The committee has also assigned the Department of Planning and Investment to co-operate with relevant sectors to provide information on the projects.
It said the high number of tourism and property projects in the list was because the province possessed several potential and natural resources that could be developed for tourism.
In recent years, the province’s tourism sector has seen opportunities that could make it one of the outstanding destinations in the country and in the world. The province is promoting its foreign affairs activities and is striving to create high quality services for the period from 2016 to 2020.
Scrap ceiling price on milk products, says NFG
The European Chamber of Commerce in Viet Nam’s Nutritional Foods Group (NFG) recommended that the Government remove the price ceiling on milk products for children under six years.
The NFG suggested that the State allows the return to market-based pricing. This proposal is a part of the 2017 White Book released in Ha Noi on Wednesday.
Under decisions 1079/QD-BTC and 857/QD-BTC issued by the finance ministry in 2014 and 2015, respectively, a price ceiling was imposed on milk products for children under six years of age from June 1, 2014, to December 31, 2016.
The NFG has proposed that the Government refrain from controlling the prices of these products by extending the existing price ceiling or through additional controls. The State’s intervention in the business activities of enterprises through administrative measures such as price ceiling run counter to its aspiration to achieve a full market economy, it said.
“We are concerned that such measures not only impact the business performance of enterprises in the short- to medium-term, but also affect long-term trade and investment prospects in general. The Government’s interference in the business decisions of enterprises sends a negative signal to investors that Viet Nam’s investment climate is not genuinely stable, open or integrated,” the NFG said.
As per data released by market research company AC Nielsen in July 2015, the market for formula milk for children under six shrunk by 11 per cent in the 12 months after Decision 1079 was implemented. “This might have been caused by the negative psychological impact the price ceiling had on consumer behaviour. Furthermore, up to 60 per cent of the public report that they have experienced moderate to no benefit from the state’s price intervention measures,” the AC Nielsen report said.
According to the NFG, since the price ceiling regulation was put in place in 2014, many costs have increased, such as Viet Nam’s đồng exchange rate and the cost of electricity and labour, all of which impact milk manufacturers and distributors. In this context, one of the biggest international milk companies decided to exit the Vietnamese market in 2016.
The group said the Government should clarify the objectives and the intended beneficiaries of its price control measures. When necessary, it should impose price stabilisation measures for a restricted period of time and only on essential products that are needed to ‘meet the basic needs of the people’, as stipulated in the Law on Pricing.
“With regard to the milk formula market, the Government should not control the prices of products in the mid-tier and premium segments. It should impose price stabilisation measures only on the economy segment to improve low-income consumers’ access to these products,” the NFG said.
The State must consider lowering price-composing factors such as import tariffs (5 per cent for imports from ASEAN and 10 per cent for other countries, which is higher than in other countries in the region) and value added tax rates to reduce the price of milk formula products for children under six years of age, it advised.
There are an estimated 888 milk products across the premium, mid-tier and economy segments, offering an incredibly diverse selection of products to meet the diverse needs of Vietnamese consumers.
Hai Dương attracts $128.6 million in foreign investment
The northern province of Hai Duong has attracted US$128.6 million in foreign investment in the first two months of 2017, up 8.4 times compared to the same period last year.
The provincial department of planning and investment said it has so far granted a licence to seven foreign investment projects with a registered capital of $89.2 million, and adjusted four ongoing ones in the industrial zone, adding another $39.4 million by February.
Hai Duong aims to be among the top 20 competitive provinces in the country by 2020, as per the plan was drawn up to improve the provincial competitiveness index (PCI) in the 2016-2020 period. To achieve this, the province is working to reduce the registration period and the time taken for legislative procedures.
It is also targeting a minimum 1.5-time increase in the number of enterprises in the province and is organising frequent dialogues between authorities and enterprises. All documents and regulations on mechanisms and policies promulgated by the province will have sought and taken into consideration the opinions of the business community.
The province is also promoting investments by large and multinational corporations, and is directing the implementation of administrative reforms, especially with regard to the duties of public officers in facilitating processes related to investment, land, construction, export and import, labour and environment.
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
