|
BUSINESS IN BRIEF 26/6
Ha
Tinh’s potential woos Japanese
The
central
Provincial
Party Secretary Vo Kim Cu told 30 Japanese enterprises at last week’s meeting
in
“We call
upon all of you, as well as other Japanese investors, to invest in Ha Tinh,”
Cu said. “I can say for sure that all of you will be treated the same as
local enterprises and Ha Tinh citizens. We will speed-up site clearances and
will halve the time for processing all administrative procedures for you.”
The
meeting was attended by major Japanese enterprises like JFE Shoji,
Mitsubishi, Sojitz, Vijachip, Jicem, Tamada, Takagi, J-Power, Sumitomo Mitsui
Banking Corporation, TK Chemical, and NNA.
“We will
build a large industrial park for Japanese investors in the time to come. We
have also established an office, known as Japan Desk, in charge of supporting
Japanese doing business and living in
The
Japan External Trade Organisation in
“Ha Tinh
is a good destination for them, because it has large power plants and Son
Duong deep-water seaport,” Kawada said. “Japanese enterprises want to invest
in many sectors including manufacturing, retail, restaurant, education,
healthcare, IT, and agriculture.”
Kyoshiro
Ichikawa, director of I.B.C Vietnam specialised in supporting Japanese
investors in doing business in Vietnam, said Taiwan’ s Formosa Group which
was developing a $10 billion steel and port complex in Ha Tinh’s Vung Ang
Economic Zone would help attract many Japanese investors involved in
machinery maintenance and logistics to the province.
Truong
Quoc Trung, chairman of Ha Tinh Minerals & Trading Joint Stock
Corporation (Mitraco) said at the meeting that Mitraco wanted to co-operate
with Japanese partners in a $100 million project to process titanium residues
and another project worth $50 million to produce gypsum planks, and
agricultural projects.
Currently,
foreign investors have been investing over $17 billion in Ha Tinh. with
Landville
awaits take off
The
central
LandVille
Energy, a subsidiary of
Vo Dai,
Deputy Chairman of the Ninh Thuan Provincial People’s Committee, said that
the project had met all the requirements of the Ministry of Industry and
Trade’s (MoIT) Circular 32/2012/TT-BTC on wind energy development and power
selling contracts.
If
included in the master plan, Landville will move forward in the process, Dai
added, noting that the project will have the total capacity of 140 megawatts.
Other details about the project have not yet been announced.
Ninh
Thuan is already home to 12 wind farms listed in the province’s development
master plan. However, the majority are moving at a slow pace. For example,
the Belgium-invested Phuoc Nam-Enfinity project was licensed in March 2011,
with the total investment capital of $266 million. The investor has not yet
completed the necessary procedures to kick off construction, despite the fact
that the project was due to be put into operation in December 2012. Others
including Impsa (
Other
provinces nationwide that boast huge potential for wind power development are
also in the same situation. A lack of specific incentive policies on the
development of renewable energy is one of the main reasons for the sluggish
implementation of these projects.
At the
2015 mid-term Vietnam Business Forum (VBF), VBF’s power and energy sub-group
stressed that renewable energy is an optimal choice for
“We
support the proposals by consulting units for the MoIT on increasing
feed-in-tariff (FIT) for wind power, and simplifying procedures for
registration and development of wind power projects,” said a representative
of the sub-group.
Sigmud
Stromme, chairman of NorCham, which represents Northern European businesses,
also suggested that the country should increase FIT for wind power and
simplify investment procedures, while applying the same policies on power
purchasing contracts for biomass power and waste-to-power plants.
Bank
guarantees for property meant to safeguard buyers
A
regulation ordering bank guarantees to become mandatory for property
purchases, which was to be completed in the future, has caused mixed concerns
among property developers and buyers.
Following
Article 56 of the Law on Real Estate Business, to take effect on July 1,
property developers, before selling or leasing unfinished or future property,
must obtain guarantees from eligible commercial banks as assurances of their
financial obligations to buyers.
Accordingly,
in case property developers fail to hand over apartments to buyers following
commitments, banks would be responsible for returning the buyers' money, in
line with signed contracts.
The
regulation was expected to protect the rights of home buyers, as well as
contributing towards cleaning up the realty market.
According
to Nguyen Manh Ha, Director of Housing and Real Estate Market Management
Department, this would eliminate risks for home buyers, as their money would
be guaranteed by banks, which would strengthen overall buyers' confidence.
Further
economic expert Nguyen Tri Hieu said the regulation would stimulate home
purchases and improve liquidity in the real estate market. Financial disputes
arising when property developers failed to complete their obligations were
also expected to be reduced.
Huynh
Trung Minh from HDBank was quoted by Tri Thuc Tre (Young Intellectual) online
newspaper as saying that bank guarantees reflected that the project met
certain standards and development potentials. Therefore, home buyers could
feel secure when spending money on guaranteed projects.
However,
there were concerns that the regulation would increase property prices and
cause disadvantages to small developers.
According
to Le Hoang Chau, president of HCM City Real Estate Association, guarantee
fees might be a factor to be calculated in property prices, which would push
up selling prices.
Thus, it
would be unreasonable to apply the regulation to all property developers, as
guarantees for projects of prestige developers were, in fact, not necessary,
Chau said. He added that, instead, buyers should be allowed to request a
guarantee if they found it necessary.
While
the regulation was expected to eliminate incompetent property developers and
enhance market transparency, Nguyen Van Duc, the association's deputy
president, worried that this regulation might burden small developers who
could need to purchase less favourable guarantee fees, in comparison to large
firms, or might face difficulties in negotiating with banks for guarantees.
Further,
some voiced concerns that this would undermine their competitiveness and even
force them to leave the market.
However,
no guarantee fees have been disclosed, as the fees should be competitive,
several banks said.
While
several developers were taking pioneering steps in signing agreements with
commercial banks to guarantee their property projects, others remained
confused with the regulation, claiming detailed instructions about guarantee
procedures were urgently needed.
To date,
no decree or circular outlining the implementation of the regulation have
been issued.
Most
recently, Sacomreal signed agreements with OCB, ACB and HDBank to guarantee
all of its projects. Previously, Novaland signed with VPBank to provide guarantees
for its four projects and Thao Dien Company signed with Techcombank to
guarantee its Masteri Thao Dien project in HCM City.
Meanwhile,
a representative from a property company said he remained unclear about
guarantee procedures due to the lack of instructions.
Doan Chi
Thanh, general director of Hoang Anh Sai Gon Company, said detailed
instructions were urgently needed, as there were only two weeks left before
the regulation was to be enacted.
CapitaLand’s
premium apartments up for grabs
CapitaLand–Hoang
Thanh, a joint venture between Singapore’s CapitaLand and domestic Hoang
Thanh company, on June 18th introduced the first mock-up units for viewing
and opened the sale of its latest apartment project, The Crown.
Located
at the heart of Mulberry Lane in Hadong district of Hanoi, The Crown will be
an impressive 35 floor building, boasting with five parking floors and
high-qualify facilities.
According
to Lim Hua Tiong, general manager of the joint venture, following the
Mulberry Lane success in 2014, CapitaLand set up The Crown as its premium
product which meets the highest standards of quality and service in the midst
of abundant greenery.
“We
believe that the cooperation for The Crown at Mulberry Lane between
CapitaLand and Hoang Thanh will bring a perfect and unique home to our valued
customers, a home that they have always been looking for,” Lim said.
The
developer also provides special payment schemes to purchasers, those who
would like to move in immediately and need financial support, or need a
longer-term payment schedule. With this programme, purchasers only need to
pay 50 per cent of the apartment value up front and can pay the remainder one
year after moving in.
Attractive
prices start from VND28million ($1,330) per square metre (excluding VAT).
In June
this year, Mulberry Lane residents also enjoy two new facilities, the
mini-golf simulators and karaoke rooms, on top of the more than 50 existing
facilities, such as the 50 metre swimming pool and multipurpose court (among
others).
The Crown
is jointly developed by CapitaLand, one of Asia’s largest real estate
companies, and Hoang Thanh, one of Vietnam’s renowned developers, and is
intelligently designed and styled with a Singaporean touch. Mulberry Lane is
the first project of CapitaLand in Hanoi, providing a total of 1,500
residential units.
Lim
confirmed that more than 70 per cent of the Mulberry Lane has been sold and
more than 600 pink books have been handed over to Mulberry Lane residents.
Apart
from the BCA Green Mark awarded by the Singaporean Ministry of Construction,
Mulberry Lane also received several other architecture awards, such as the
Green Building Architecture prize in 2014 and the National Architecture Award
2015.
CapitaLand
is currently present in the four major cities of Vietnam – Ho Chi Minh City,
Hanoi, Haiphong and Danang, mainly focusing on the residential and serviced
residences sectors.
In the
residential sector, CapitaLand has a portfolio of close to 6,000 quality
homes across six residential projects in Ho Chi Minh City and Hanoi.
US$5
million for Chan May port upgrading project
Royal
Caribbean International Group (RCI) and Vietnam Shipbuilding Industry
Corporation on Sunday signed an agreement to upgrade Chan May Port in the
central province of Thua Thien-Hue.
RCI will
invest US$5 million in upgrading the port’s infrastructure system so that it
can receive large vessels carrying up to 4,000-5,000 passengers each. At
present, the port serves vessels with 3,000 passengers.
Chan May
is among 46 seaports, which are chosen by the Asia Cruise Association to be a
destination for pleasure boats in the Southeast Asia region.
Chan May
port has so far received 23,581 visitors from Hong Kong (China), Italia,
Spain, England, the U.S., Canada and Australia this year.
The
number is expected to rocket up by the yearend, reaching 68,113 visitors, up
193 percent over 2014.
VietJet
Air adds more flights between Hanoi and Da Nang
Vietnamese
budget carrier VietJet Air will fly 13 additional flights on Hanoi- Da Nang
route to meet high demand in summer vacation.
Those
return flights will be scheduled on June 23, 24, 27 and 30.
VietJet
Air will also offer 2,000 flights with a total of 360,000 tickets and a
promotion with airfares from just VND0.
Passengers
can get further information on the promotional programs at website
www.vietjetair.com; https://m.vietjetair.com;
www.facebook.com/vietjetvietnam; or phone to the switchboard 1900 1886.
Irrational
fees, rules render companies uncompetitive
Companies
are caught in a maze of thousands of rules and irrational fees which are
hindering their development and competitiveness.
The
Ministry of Industry and Trade wants 3,299 rules imposed by ministries
removed.
Under
the Law on Investment 2014, only the National Assembly, the Assembly's Standing
Committee and the government, and not ministries, can set rules for business.
“When
the Law on Investment 2014 takes effect on July 1, 3,299 irrational business
conditions will be removed,” said the Ministry of Planning and Investment.
The
ministry said the ministries of Finance, Industry and Trade, Agriculture and
Rural Development, and Transport, have the highest number of irrational
procedures and fees.
Nguyen
Dinh Cung, director of the Central Institute for Economic Management (CIEM),
said fees and procedures are a burden on companies and create barriers for
exporters.
Pham
Thanh Binh, a specialist from the USAID Governance for Inclusive Growth (GIG)
Program, said many exporters complain about irrational fees, which eat up
their profits.
Lack
of interest thwarts Vietnam in high-tech farming
Vietnam
is striving for more mechanisation in agriculture and high-technology
farming, but qualified graduates are unable to find jobs in the sector
because companies are switching to more profitable businesses.
While
the rice-bowl Mekong Delta has achieved 75 percent mechanization, the average
rate in the northern region is 20 percent, many farmers still planting and
harvesting by hand. In cattle, apart from a few big companies, farmers cannot
afford to use more machinery.
Le Minh
Lu, a lecturer from Vietnam National University of Agriculture, said that in
the past each district and province had agriculture engineers and factories
making machinery. But this is no longer part of local development plans.
Graduates
have a hard time finding work and many are either joining export labour
programmes or participating in competing for the few positions available at
FDI companies in Vietnam.
Institutes
specialising in the sector say there is little funding for research and
development.
"Many
factories have stopped making agricultural machinery and have switched to
spare parts for motorbikes, because they are cheaper to import (from South
Korea and Japan)," said Nguyen Van Lang, former head of Institute of
Engineering and Technology.
Only two
universities still offer courses in agricultural engineering, and few
students choose the field, said Le Minh Lu, a lecturer from Vietnam National
University of Agriculture. Even those are struggling meet enrollment quota.
Lu said
Vietnam should have an agriculture engineering department to plan sustainable
domestic strategies to support farmers and improve the agriculture sector.
Draft
circular allows firms to pay export, import taxes online
Enterprises
would not need to send staff to banks to pay export-import taxes and fees
because online payments could be made possible, according to a draft circular
sent to enterprises in HCMC for comment.
At a
meeting held last week to seek comment on the draft of the revised circular,
Lo Thi Nhu, director of the Import-Export Duty Department under the General
Department of Customs, said enterprises and individuals now have to go to
banks to pay taxes and take paper receipts.
However,
with amendments to the draft circular replacing Circular 126, businesses can
use the Internet to pay taxes.
To
implement Circular 126, the General Department of Customs signed deals with
22 banks where enterprises pay taxes, fines and fees. Tax payers prepare,
file and pay taxes in cash or by transfer. The tax paid will be transferred
to the State Treasury, which will then send payment updates to the customs to
clear the goods of tax payers.
However,
under the draft circular, tax payers would pay taxes via the Internet banking
service. In addition to tax payments, they would be permitted to pay customs
and other fees via an integrated electronic customs payment tool.
An
employee in charge of export and import at an auto firm told the Daily that
his company was quite interested in paying import tax for components via the
Internet.
A
representative of Vietcombank told the meeting held by the U.S. Agency for
International Development (USAID) and the General Department of Customs that
it is necessary to help enterprises understand that electronic receipts can
be used to prove tax payments and for goods clearance. The reason is that
many enterprises still want to wait long to get paper bank receipts for their
tax payments.
According
to the General Department of Customs, both Circular 126 and the draft
circular aim to facilitate tax payments by enterprises and enhance the
customs authority’s management of budget collections.
After
Circular 126 became effective on October 1, 2014, the ratio of export and
import taxes and fees collected online had increased from 53% last year to
63% by May.
Automated
banking service makes a difference
The Auto
Banking model that Dong A Joint Stock Commercial Bank (DongABank) has
recently introduced in HCMC has helped the bank stand out. DongABank is
expanding this banking service across the country.
“What
makes Auto Banking at DongABank special is all Auto Banking booths are 100%
automated, open 24/7, more spacious than the regular automated teller machine
(ATM) booths, more secure thanks to the presence of security guards, and
equipped with smart finance equipment like ATMs, touch screens and phones to
support cash deposits, cash withdrawals, inter-bank transfers, card
registrations and bill payments. They function the same as a normal
transaction office and customers can carry out transactions quickly, safely
and conveniently on their own,” said Dao Trung Kien, head of the Auto Banking
project at DongABank.
“This
marks a breakthrough in the banking sector in Vietnam and helps customers
save time and be active when conducting all transactions in modern life.”
Auto
Banking really makes a difference as it offers customers comfort and
flexibility. With Auto Banking, the customer is boss, he added.
Automated
banking transactions are popular and favored in developed countries as they
offer customers flexibility during banking transactions. In Vietnam, Auto
Banking was introduced for the first time at the Banking Vietnam 2010
conference. Many banks started to launch it in 2012 but on a small scale and
with few products. Therefore, it has yet to draw much attention of customers.
Some banks have had to either close Auto Banking booths or convert them into
regular ATM booths.
Therefore,
to create a difference and a new appearance for Auto Banking, DongABank has
tried to make it the most modern with many functions to reflect the nature of
Auto Banking. DongABank has put 42 Auto Banking booths into operation
nationwide.
Auto
Banking at DongABank comprises spacious and well-equipped booths. An Auto
Banking booth has two to three new-generation ATMs and a larger one has four
to five ATMs. ATMs at DongA Bank’s Auto Banking booths are among the most
modern in Vietnam and can notify instant money reception as well as capture
serial numbers of every processed banknote.
Besides,
Auto Banking booths of DongA Bank are equipped with touch screens for
Internet Banking transactions, phones for customers to directly contact the
free-of-charge customer care center, and boxes to receive financial requests
of customers. Such boxes are a quite simple service of Auto Banking but in
the trial period, a number of customers said it was their favorite part about
Auto Banking. It is because customers just need to write down their basic
personal information on the form available at the booths and put it in the
boxes, DongABank’s staff will then contact customers at their convenience.
In
addition, every Auto Banking booth has security guards to ensure safety for
customers’ and the bank’s assets. In the first phase, there is an employee of
DongABank at each booth to offer advice for customers and help them use the
service.
Under
the development road map of DongABank, Auto Banking will be present not only
in downtown areas in major cities but also in suburban areas, districts and
towns where DongABank has branches so that all of its customers can use
this convenient banking service. DongABank targets to have 150 Auto Banking
booths nationwide towards the year-end.
DongABank
is one of the banks that pioneer and apply new technologies to banking transactions.
The bank is in the top five in Vietnam in terms of card holders with more
than eight million ATM cards issued.
“DongABank’s
decision to implement Auto Banking, a new banking service in Vietnam, is a
clear indication of its commitment to cost saving and manpower investment. We
hope this user-friendly, convenient, safe and quick service will help
customers get access to banking services easily and accelerate the process to
achieve the Government’s goal for non-cash payment market development,” said
CEO of DongABank Tran Phuong Binh.
Fuel
wholesalers told to open more E5 bio-fuel stations
Deputy
Prime Minister Hoang Trung Hai has urged local fuel wholesale firms to have
at least 50% of their filling stations selling E5 nationwide at the end of
November to speed up the consumption of the bio-fuel.
Ministries,
agencies and fuel trading enterprises should cooperate in implementing a
major program to promote sales of and expand the E5 bio-fuel pumping station
network to serve more customers, according to the Government Office’s
Document No. 200/TB-VPCP. The document is about the Deputy Prime Minister’s
instruction at a review meeting for a roadmap to boost bio-fuel consumption
in the country.
At the
end of November, fuel trading enterprises will have to sell the E5 gasoline
at half of their gas stations in the provinces and cities chosen for the
roadmap. The Ministry of Industry and Trade is assigned to monitor the
expansion of the E5 bio-fuel selling network in the country.
At
present, less-than-expected filling stations sell the bio-fuel which has 95%
petrol and 5% ethanol in Hanoi, HCMC and Ba Ria-Vung Tau, Hai Phong, Can Tho,
Danang, Quang Ngai and Quang Nam.
A recent
survey of the ministry showed ten enterprises are selling the E5 RON 92
gasoline at only 58 out of 500 gas stations in HCMC. Fuel wholesalers said it
is difficult to increase the number of E5 RON 92 gasoline stations as
customers are hesitant to buy this type of fuel.
E5
bio-fuel sales at Petrolimex, Saigon Petro and Saigon Fuel Co. (SFC) have
grown a mere 2-4% compared to those of the RON 92 and 95 gasoline products.
In reality, there are not many filling stations selling the bio-fuel in the
localities selected for the roadmap.
Danang
City and Quang Ngai and Quang Nam provinces have shifted to sell the E5 RON
92 gasoline instead of RON 92 petrol. In Hanoi and HCMC, the number of E5
bio-fuel stations remains modest and fuel trading companies provide both the
E5 RON 92 and RON 92 gasoline.
Apparel
sector looks to US$27.5 billion exports this year
Vietnam’s
apparel exports have slowed this year compared to last year but the Vietnam
National Textile and Garment Group (Vinatex) is pinning high hopes that the
industry can achieve export revenue of around US$27.5 billion this year.
The
target was unveiled by Vinatex’s general director Nguyen Tien Truong at a
review meeting in Hanoi last week, VietnamPlus reports.
According
to Vinatex, Vietnam’s apparel shipments this year have increased 10.26%
year-on-year to US$12.8 billion. The growth is lower than the 19% recorded
last year.
The
United States is the biggest export market for Vietnamese apparel as it has
imported apparel worth US$5.18 billion this year, up more than 11% over a
year ago and accounting for 42% of Vietnam’s total apparel exports.
Apparel
revenue from the European Union has gone up by 8.2% year-on-year to US$1.45
billion. Apparel exports to Japan and South Korea have reached US$1.3 billion
and US$948 million in the January-June respectively.
Vietnam
is the second largest apparel exporter to Japan and Korea in the January-June
period after China, according to Vinatex.
Commenting
on the opportunity from the free trade agreement with the Eurasia Economic
Union (EEU), Truong said Vietnam’s apparel export to the bloc are forecast to
soar 50% in the first year after the trade pact takes effect and 20% in the
following years.
Vietnam
is currently the eighth largest apparel exporter of the EEU with outbound
sales of over US$300 million.
“Vietnam
will be able to become the fifth apparel exporter of the EEU and reach export
revenue as competitors Bangladesh and India in the next three to five years,”
Truong said.
Vietnam
signed the FTA with the EEU in Kazakhstan in late May with an aim to speed up
cooperation in various sectors like trade, services, investment, finance,
banking and e-commerce.
Vietnam’s
exports to the EEU are projected to expand 18-20% per year. With the FTA with
the EEU, Vietnam and Russia expect their bilateral trade to surge to US$10
billion by 2020 from some US$4 billion per year.
EAEU
FTA opens big door for Vietnamese exports
The free
trade agreement between Vietnam and the Eurasian Economic Union (EAEU)
comprising Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan was officially
signed on May 29 after many years of negotiations, opening a big opportunity
to the country’s exports.
Vietnam
has become the first nation outside the Commonwealth of Independent States
that signs free trade agreement with the union.
The
agreement will abolish 90 percent of tax lines, equivalent to 90 percent of
bilateral trade turnover.
Nearly
100 percent of Vietnamese seafood products and 80 percent of garment and
textile and leather and footwear items will enjoy 0 percent tariff rates.
Other
tax lines would be abolished in accordance with a committed route. Many farm
produce and wooden items would be imposed low tax rates.
Vietnam
will follow a route to open its market to some breeding and industrial
products such as machines, equipment, transport means, steel and petrol.
The
union’s farming production has mainly served their demand not exports.
Therefore, it is forecast that the FTA will not much affect Vietnam’s
agricultural industry in the first five years of implementation.
Initial
estimations from the union show that bilateral export import turnover will
hit US$10-12 billion in 2020 from US$4 billion last year. Meantime, Vietnam
expects its export turnover to the union to grow 18-20 percent annually.
Many
Vietnamese businesses said that the union’s members especially Russia have
been long-term trading partners of Vietnam but high tariff rates have
hindered annual trade growth.
According
to Vietnam National Textile and Garment Group, the union’s annual import
turnover of garment and textile products approximates US$17 billion. Of
these, Vietnam holds only 2 percent with US$700 million due to tariff
barriers. The turnover is expected to increase 50 percent thanks to tax cut.
Challenges
seen from the FTA to Vietnam comprise long geographical distance, causing difficulties
in goods transportation and preservation, and hindrances in payment with
foreign currencies such as the U.S. dollar and euro.
EAEU
locates over 20 million kilometers accounting for 15 percent of the world
area with a total population of 175 million. The union’s Gross Domestic
Product reached US$2.5 trillion. It takes the lead in the world’s gas output,
and is ranked the third and forth in electricity and coal outputs.
Bank
loans rise 5.8% in first half of 2015
Vietnam’s
credit growth as of June 15 is estimated at 5.8% against the end of 2014, a
State Bank of Vietnam (SBV) official has announced.
According
to head of the central bank’s monetary policy department Bui Quoc Dung, loans
rose by 18.98% over the last twelve months, with credit to agriculture, one
of five priority sectors, up 7.71% against December last year.
As of
March 3, loans to the remaining four priority sectors - exports, small and
medium-sized enterprises, priority industries and high-tech enterprises -
rose by 3.9%, 1.88%, 0.2% and 24.02%, respectively.
The SBV
set a credit growth target of between 13% and 15% for the whole year, which
Dung said is very much within reach.
Vietnam’s
M2 money supply as of June 15 rose 4.88% while deposits were up by 4.37%
during the same period, the central bank’s official added.
According
to the central bank, deposit interest rates in the first half of 2014 have
dropped by 0.2-0.5%, mainly deposits with terms of more than six months.
Lending
rates have also gone down by 0.2-0.3%, averaging at 6-9% per year for
short-term loans and 9-11% for medium and long-term loans.
To date,
the SBV has devalued the Vietnamese dong twice, by 1% each time, in a bid to
boost exports and drive economic growth, which means that there will be no
more exchange rate adjustments for the rest of the year if the central bank
keeps its pledge.
Conference
reviews Vietnam Development Partnership Forum
Vietnam
has focused on poverty reduction in ethnic minority groups, enhancing the
involvement of the private sector in providing public services, environmental
protection and improving the competitiveness of the labour force through
training and skills development.
The
information was released at a meeting in Hanoi on June 23 to review the
implementation of the results of the Vietnam Development Partnership Forum
(VDPF).
During
the meeting, the Vietnamese government and development partners discussed
four major issues that Vietnam committed to dealing with at the VDPF 2013 -
clean water in rural areas, environment management, vocational training and
capacity building, and poverty reduction in ethnic minorities.
Ministry
of Planning and Investment, relevant agencies and localities have been
co-ordinating closely to implement consistent policies, including developing,
reviewing and amending related programmes, regulations and legal documents,
as well as building and implementing action plans for poverty reduction in
ethnic minority groups, and improving the skills and qualifications of the
participants in implementing the VDPF commitments.
As a
result, the poverty rate in the country fell from 58% in 1993 to 5.975% in
2014. Most notably, the poverty rate in ethnic minority groups has been
reduced by 3-4% per year over the past years.
Currently,
84.5% of households in rural areas use potable water and 62% have standard
latrines.
Additionally,
Vietnam has now 1,456 vocational training establishments, an increase of 100
over the same period last year, meeting the demands of the country's economic
development.
At the
meeting, experts also discussed and made proposals to further enhance
provisions of services to ethnic minority groups, as well as mobilise all
resources to solve poverty.
Addressing
the meeting, World Bank Country Director for Vietnam Victoria Kwakwa
emphasised that the development partners praised the great results of Vietnam
in the work of poverty reduction.
She also
noted that Vietnam should encourage measures to improve the quality of human
resources, an important factor in the country’s economic development in the
context of international integration, as well as encourage private
enterprises to construct and operate water supply and wastewater treatment
systems.
Forum
discusses recommendations for ASEAN’s sustainable food and agriculture
Nearly
350 global leaders from ASEAN countries, international enterprises, financial
institutions and agricultural associations have gathered at the 2nd
Responsible Business Forum on Food and Agriculture which opened in Hanoi on
June 23.
Under
the theme ‘ASEAN Beyond 2015: Collaboration for Equitable Growth’, working
groups will make recommendations aiming to form a more sustainable future for
food and agriculture in the ASEAN bloc.
In his
opening remarks, Deputy Minister of Agriculture and Rural Development Le Quoc
Doanh emphasised the need to boost co-operation and investment among ASEAN
countries in building sustainable agriculture aiming to meet an increasing
demand for sustainably produced commodities.
Vietnam
has been utilising the public-private partnership (PPP) model in many agricultural
commodities, which has brought about positive outcomes including raising
productivity and incomes, and reducing water consumption and waste, Doanh
said. About 500,000 Vietnamese farmers will participate in PPP projects by
2017, he added.
Doanh also
expressed his hope that via the forum, enterprises would intensified their
co-operation through the PPP model, which he said would significantly
increase agricultural productivity, ensure food security and enhance the
competitiveness of ASEAN’s farming products in the world market.
According
to Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry
(VCCI), agricultural development is being threatened by urbanisation,
pollution, environmental degradation, climate change and increasing population,
requiring innovative approaches to farming.
He
highlighted the key role played by enterprises in connecting and promoting
sustainable agricultural development through hi-tech and quality production
models and close ties with farmers in key value chains.
During
the two-day forum, deputies will produce actionable recommendations to
increase the global supply of sustainably produced commodities such as tea,
rice, coffee, dairy and aquaculture, while improving farmer livelihoods and
reducing environmental impacts.
Aquaculture
eyes international standards
Vietnam's
Directorate of Fisheries (D-Fish) and the Aquaculture Stewardship Council
(ASC) will work together on promoting responsible aquaculture in the country.
A
Memorandum of Understanding to this effect was signed by the two sides at a
workshop held on June 22, the first day of the Responsible Business Forum in
Hanoi.
Under
the MoU, the two sides will cooperate on upgrading aquaculture practices with
a step-by-step approach, moving from VietGap standards to ASC certification.
Pham Anh
Tuan, Deputy Head of D-Fish, said that aquaculture was one of four key
components of Vietnam's fisheries industry, accounting for 60 percent of its
total output, which is expected to rise to 70 percent by 2020.
The
introduction of national Good Agricultural Practices (VietGAP) by the
Agriculture Ministry was aimed at promoting sustainable aquaculture, and the
latest initiative would take the process further ahead, Tuan said.
The
workshop reviewed differences between VietGAP and ASC standards, and reached
agreement on implementing a joint project that will guide VietGAP certified
farmers to reach ASC certification.
Tuan
said the Vietnamese Government had been committed to reducing the negative impacts
of fish farming in the country, and building on the mandate that farms must
meet VietGap standards, the new project would help them move towards an
internationally recognised standard.
This in
turn, would provide firms with greater access to international markets and
ensure a more responsible aquaculture sector, he added.
In 2014,
the Government issued a decree on breeding, processing and exporting catfish,
stipulating that farms must acquire VietGAP or equivalent certification by
the end of 2015.
ASC
Managing Director Chris Ninnes said that through this project, his agency was
engaging with farmers not currently able to meet ASC requirements, including
smallholders.
They
would benefit from greater support in improving their practices, he said,
adding that this approach would also enable the ASC to become a more
efficient service provider by reducing costs for producers who wish to gain
ASC certification.
The ASC
has so far granted quality certifications to around 3,000 labels and over
500,000 tonnes of products in the world market.
Workshop
participants said aquaculture certification played an important role in
promoting and assuring responsible practices that protect the environment and
communities.
The new
project, led by an external consultant, had the potential to lead to greater
collaboration between the two organisations by adopting an area-based
management approach, they added.
Free
quarantine service for lychee exported by air
Fresh
lychee for export by air will undergo quarantine procedures for free, a move
meant to boost its export, especially to newly-opened markets.
At the
request of the Department of Plant Protection under the Ministry of
Agriculture and Rural Development, relevant agencies must arrange sufficient
manpower and equipment to accelerate the process.
Vietnam
has shipped nearly 20 tonnes of lychee to Australia and four tonnes to the
US, not to mention other markets like Japan, Singapore, Malaysia, UK and
Germany, said deputy head of the department Hoang Trung,
Lychee
prices are stable and likely to rise, he added.
Vietnamese
goods catch interest of South African partners
Vietnamese
goods caught the interest of South African partners at the 22nd Southern
African International Trade Exhibition, which took place in Johannesburg city
from June 21-23.
The
Hanoi Association of Small and Medium-Sized Enterprises (HASME) opened three
booths to introduce products from over 20 enterprises in Hanoi and other
localities.
Products
on display include agro-products, garments and textiles, construction
materials, computers and software, appliances and handicrafts.
Chairwoman
of Johannesburg City Council Connie Bapela and around 200 importers from
South Africa and countries in the region visited Vietnamese booths.
Bapela
said that Johannesburg authorities and enterprises are willing to help
Vietnamese products deeply penetrate their domestic market and that of other
countries in the region.
Vice
Chairman of HASME Mac Quoc Anh said that providing information to the
organisers about products on display at the fair in advance helped foreign
partners reduce fact-finding time and advance to signing contracts.
Le Huy
Hoang, Vietnamese Ambassador to South Africa, expressed his delight at the
attention Vietnamese goods received at the fair, especially from South
African partners.
Hoang
asked enterprises to continue improving the quality and diversification of
their products, conduct research into South African consumer demands and
tastes and establish linkages.
On the
occasion, a working group from the Export Department under the Ministry of
Industry and Trade had a meeting with representatives from the South African
Department of Trade and Industry to discuss measures to lift trade to 1.5
billion USD in 2016.
SAITEX
is the largest annual multi-sector fair in Africa; this year it drew more
than 15,000 visitors.
Khanh
Hoa to expand salangane nest farming
The
central province of Khanh Hoa plans to designate 10,000 hectares to the
establishment of five salangane nest villages by 2020, thus further promoting
its bird nest brand at home and abroad.
According
to the plan, the number of salangane nesting in Khanh Hoa will be increased
from 58,000 to just over 1.3 million in 2020.
The
province aims to develop the villages in combination with environmental
protection and the sustainable development of wild salangane population.
The
locality will apply a number of techniques that have already been applied
successfully by the Khanh Hoa Salanganes Nest Company, including different
incubation and chick rearing methods.
Khanh
Hoa has the largest population of wild swallows in Vietnam, with surveys
counting more than 3,380 nests in 2014, which were collected in 169 caves on
32 islands.
The
province has also erected 500 slangane nesting houses throughout Vietnam and
transfers its expertise and technology to more than 700 nesting houses all
over the country.
Phu
My optimistic of first-half results
The
PetroVietnam Fertiliser and Chemicals Corporation (PVFC Co), better known as
the Phu My Fertiliser (DPM), estimated its first-half revenues will reach
4.945 trillion VND (226.8 million USD) and pull in profits of 810 billion VND
(37.2 million USD).
The
prediction would mean 3 percent more in revenues and 13 percent more in
profits than the target it set at the start of the year.
Other
fertiliser companies including Phu My urea, Phu My NPK, Phu My Kali
(potassium), Phu My SA and Phu My DAP also did well, surpassing their
targets.
According
to PVFC Co General Director Cao Hoi Duong, the encouraging results could be
attributed to lower oil prices in the global market, which helped reduce gas
input costs at the Phu My Fertiliser Plant.
The
rising quality and reputation of Phu My fertiliser products in the market and
a strong distribution network both contributed to positive sales in the first
six months, Duong said.
Phu My
fertiliser products currently hold 48 percent of the domestic market share.
According to a 2014 survey conducted by the market research firm Nielsen
Vietnam, the Phu My fertiliser brand continued to best other major fertiliser
brands in Vietnam.
On June
7, PVFC Co signed an engineering, procurement, construction and commissioning
(EPC) contract with a contractor consortium to expand Phu My's NH3 Unit and
build the Phu My NPK Complex.
The
complex project, with a total investment capital of 5 trillion VND (229.4
million USD), will use up to date technology to produce local high-quality
NPK fertiliser to take over the import dominated NPK market. The complex is
slated to operate from the second quarter of next year.
According
to Duong, growing competition, rising input costs due to non-deductible VAT
for fertiliser products, as well as volatile foreign exchange rates and
globally declining prices are the main challenge to the company's second half
of the year.
PVFC Co
projects its total sales will reach over 4.3 trillion VND (197.2 million USD)
and bring in a profit of 720 billion VND (33 million USD) in the last six
months of the year, slightly lower than the first half.
DPM
shares were traded around 29,000 VND (1.33 USD) on the Hochiminh Stock
Exchange in recent sessions.
In
March, its subsidiary the Southeast PetroVietnam Fertiliser& Chemicals Co
listed 12.5 million shares on the Hanoi Stock Exchange under the code of PSE.
The
company said other subsidiaries including PVFC Co Southwest, PVFC Co Central,
PVFC Co North and PVFC Co Packaging would debut shares in the next two
quarters of the year.
3.5
bln USD for power transmission expansion over past 5 years
The
National Power Transmission Corporation (EVNNPT) has completed investments
worth nearly 75.3 trillion VND (3.45 billion USD), including 56.8 trillion
VND of net investment (2.6 billion USD) between 2010 and 2015.
The
figure represented a 2.9-fold increase from 2008-2010 and 1.5-2 times higher
than its set targets.
The investment
has allowed EVNNPT ensure a sufficient power supply to economic hubs in
northern and southern Vietnam.
Over the
past five years, the corporation put 242 transmission projects into operation
with more than 8,500 kilometres of power lines and substation transformers
with a total power rating of 39,349 MVA.
It has
developed reliable networks of 500-kilovolt power lines in a number of
locations, such as the system running from Son La through Hoa Binh, Nho Quan,
Thuong Tin and Quang Ninh in the north and the system connecting Phu Lam, Cau
Bong, Tan Dinh and Song May, Phu My and Nha Be in the south.
In
addition, 220-kilovolt transmission stations in Van Tri and Thanh Cong
together with 220-kilovolt power lines connecting Van Tri–Soc Son, Van
Tri–Chem and Ha Dong–Thanh Cong commenced operations to supply electricity
for Hanoi.
The
company also constructed and renovated several other 220-kilovolt
transmission stations across the country to prevent electrical overloads.
Credit
grows by 6.09 percent in first half of 2015
Vietnam
recorded a credit growth rate of 6.09 percent by June 18 compared to the end
of 2014 and 18.98 percent from the same period last year, according to Deputy
Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong.
Banks
offered a substantial amount of credit to agriculture and rural development
with outstanding loans by June 30 increasing by 7.71 percent from December 31
last year.
Credit
growth was also seen by the end of March in the four other prioritised
fields, namely export (3.9 percent), small- and medium-sized enterprises
(1.88 percent), prioritised industries (0.2 percent), and businesses applying
hi-tech (24.02 percent), Hong said at a press conference reviewing the
sector’s six-month performance on June 23.
Regarding
recent interest rate increases for under-six-month deposits, she said the
move has been sporadic.
She
explained that when the interest rate cap was set for under-six-month
deposits, banks with abundant capital sources offered interest rates lower
than those of other institutions. Now these banks are raising their
short-term deposit interest rates to fall in line with those of their
counterparts.
Interest
rates for over-six-month deposits are still stable, she added, noting that
overall deposit and lending interest rates were cut by 0.2-0.5 percent and
0.2-0.3 percent a year, respectively.
At the
press conference, the Deputy Governor reiterated that the SBV will keep the
fluctuations of the VND/USD exchange rate below 2 percent in 2015, as set in
its policy for the year, though the rate has already been adjusted by 1
percent twice this year.
Conference
evaluates Vietnam’s economy over the past 30 years
Economic
reforms aim to broaden choices for residents, said Vo Tri Thanh, Vice
Director of the Central Institute for Economic Management (CIEM) at a
conference evaluating achievements and challenges for the Vietnamese economy
held in Hanoi on June 23.
After 30
years of Doi Moi (reform), Vietnam has become a middle-income country with an
economy shifting toward industrialisation and a high level of global
integration in addition to realising a raft of millennium development goals.
However, the economy suffers from low quality of growth and the workforce,
high transaction costs and inefficiency in state-owned enterprises and public
investment.
Thanh
underscored that mindset shifts and resolve of the whole political system
play crucial roles in effective reform while the liberalisation of trade,
investment and integration will help enhance Vietnam’s comparative advantage.
Macro-economic
stabilisation, institutional reform and private sector development also
contribute to effective reform, he added.
At the
conference, participants discussed visions for economic reform and
development progress through 2035 and sought solutions to address financial
instability, including striving for a balanced financial systems, improving
the capacity of financial supervision, stabilising the macro-economy,
maintaining flexible exchange rates and boosting the capacity and independence
of the central bank.
Meanwhile,
economist Cao Viet Sinh recommended improvements in public investment
efficiency and completing a legal framework for Government purchase and
public-private partnerships.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Năm, 25 tháng 6, 2015
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét