Unemployment grows strongly

The number of workers in HCMC who got unemployment benefits last year amounted to 122,204, an increase of 13,822 compared to 2015, Tran Xuan Hai, director of the HCMC Centre for Employment Service (CES), said at a conference here in the city on January 4. 

The conference was held by the HCMC Department of Labor, Invalids and Social Affairs to review the employment situation in 2016 and discussed plans for 2017.

Last year, the number of laborers who claimed jobless benefits reached 122,771, the highest since 2012, Hai added. However, a few hundreds were ineligible for unemployment allowances.

He ascribed the sudden increase last year to the increased awareness among workers on jobless benefits.

In addition, the deadline for laborers to register their unemployment was extended, giving the unemployed more time to claim benefits.

However, the number of people coming to the center to look for jobs was 330,425, down 25,812 compared to a year earlier.

Nguyen Van Lam, deputy director of the department, said 311,135 people found jobs and 130,109 new jobs were created in 2016, which helped to cut the jobless rate in the city to 4.4%.

SBV puts bad debt at 2.46%

The bad debt ratio was estimated at 2.46% at the end of November 2016 and kept steady at less than 3% last year, says the State Bank of Vietnam (SBV).

By the end of last November, Vietnam Asset Management Company (VAMC) had acquired 839 non-performing loans worth VND23.28 trillion in principal at the price of some VND22.48 trillion.

In a statement issued on January 4, the SBV attributes this result to coping solutions, inspections, supervision, restructuring and settlement of bad debt.

Inspection and supervision of banking activities were further strengthened last year, actively assisting the implementation of monetary policy as well as bad debt restructuring and settlement. Thanks to this, the operations of credit institutions underwent many positive changes, helping them achieve growth in deposits, assets and credits.

Notably, the safety and stability of the system were maintained, with improved financial capability. Weak banks were strictly controlled, restructured and monitored, while shortcomings were radically tackled.

The SBV believes money supply was reasonably regulated last year, enabling credit institutions to stabilize their deposit rates and cut lending rates, and helping the State successfully issue large amounts of G-bonds at low interest rates. Also, this helped keep the exchange rate stable and ensure effective control of inflation.

Therefore, the monetary indicators went up according to the targets set at the beginning of the year. By December 29, money supply had increased by 17.88% and deposits had risen 18.38% against the end of 2015. The banking system’s liquidity was ample and the interbank market was running smoothly.

Besides, interest rates were stabilized. A number of credit institutions brought down their lending rates to support production and business thanks to the solutions offered by the central bank.

One of the solutions is to flexibly use the tools to keep liquidity in the system ample and interbank interest rates at low levels. In addition, credit institutions are directed to take measures to balance their capital, maintain stable deposit rates, reduce costs, improve business efficiency, and gradually adjust down the ratio of short-term funds used for making middle- and long-term loans.

The SBV said the exchange rate and the foreign exchange market were relatively stable last year despite the pressure from unexpected global market movements.

VAT no longer refundable for boats of over 400 HP

The Government has decided to stop refunding value added tax (VAT) for fishing boats which have capacity of more than 400 HP.

The decision was provided for in Decree 172 issued late last year to amend Decree 67, which was issued in 2014 to provide incentives for the seafood sector.

Decree 172 abolishes a provision of Decree 67 that gives value added tax (VAT) refunds to owners of newly-built and upgraded boats with capacity of 400 HP or above.

According to the new decree, the removal will be effective from February 15.

However, for boats that have been completed and transferred to their owners before January 1, 2015, their owners can still get VAT refunds based on the time of contract signing.

In case the boats were built or upgraded before January 1 last year without contracts, the VAT will be refunded based on invoices for goods and services related to works to build or upgrade the boats.

For boats which were completed and transferred to owners after January 1 or contracts signed after that, owners will not be allowed to get VAT refunds.

Can Tho takes third position in retail sales

Can Tho City’s total retail sales of goods and services last year totaled an estimated VND95.6 trillion (some US$4.2 billion), ranking third in the country behind HCMC and Hanoi, Can Tho’s Department of Industry and Trade said at a conference on January 4.

In the Mekong Delta region, An Giang Province took the second position after Can Tho City, with total retail revenue amounting to nearly VND84.6 trillion. Meanwhile, retail sales in Tra Vinh Province stood at around VND21 trillion, the lowest in the delta.

Among five cities under the central Government, HCMC took the lead with its retail revenue climbing to VND682.7 trillion while Hanoi ranked second with nearly VND505 trillion.

In addition, the northern city of Haiphong and the central coastal city of Danang reported total retail sales of around VND91 trillion and VND77 trillion respectively.

At the 2016 review conference, Huynh Trung Tru, deputy director of Can Tho Department of Industry and Trade, said 2016 was a busy year for the retail sector of the city as many businesses strongly expanded investment, contributing to the city’s rising retail revenue.

Last year, four new supermarkets and commercial centers were put into operation in the city, raising the total to 18.

Nguyen Minh Toai, director of the department, said Saigon Trading Corporation, or Satra, will open Satrafoods convenience food stores and develop Centre Mall centers and Satramart supermarkets citywide, mostly in Ninh Kieu District.

This year’s target of the city is to obtain VND105 trillion in retail revenue, up 9.87% compared to 2016, Tru added.

The city’s export turnover last year exceeded US$1.5 billion, an increase of 3.4% compared to a year earlier. Meanwhile, import expenditures totaled US$293 million, down 26%, and representing just 58.4% of the full-year target.

Railway sector asked to develop sustainably in 2017

Deputy Minister of Transport Nguyen Ngoc Dong urged the Vietnam Railway Corporation (VNR) to enhance transport quality and use technology in management for sustainable development in 2017.

During a conference on VNR’s production and business plan in 2017 in Hanoi on January 5, the Deputy Minister underlined efforts the railway sector made in 2016 to maintain growth.

According to Doan Duy Hoach, VNR Deputy Director General, the company’s output and revenue hit 7.97 trillion VND (350.9 million USD), and 8.34 trillion VND (366.87 million USD), respectively, equivalent to 87.7 percent and 88.8 percent of the figures in 2015. The company earned post-tax profits of 137 billion VND (6.03 million USD).

Hoach attributed the fall in output and revenue to the reduction of its joint stock companies and networking due to divestment and equitisation.

The collapse of the Ghenh Bridge in Dong Nai, storms and floods in the central region, uncompetitive transport prices, and newly-restructured subsidiaries also explained the corporation’s poor performance, Hoach said.

To improve the sector’s competitiveness and efficiency in 2017, VNR aims to submit a proposal to the ministry to enhance the performance of the railway network nationwide, with focus on the Hanoi – Vinh route.

VNR will also mobilise social resources, investing in means of transport and support facilities.

Additionally, the corporation will accelerate the implementation of key projects, particularly on infrastructure and train building.

Efforts will also be made to better business management and reform administrative procedures.

Rice producers, exporters aim to increase consumption

An Giang Import Export Company (Angimex), one of the large rice export companies in Vietnam, plans to focus on improving its rice quality and better controlling plant-protection residues to promote rice exports, especially to the US and EU markets.

Vo Truong Giang, director of Angimex’s raw material development centre, said that Angimex exported about 120,000 tonnes of rice last year to many markets, including Asia, Australia, Japan and the US.

Exports fell by 20 percent over 2015 due to drastic competition with Thai rice and an increase in rice production in Vietnam’s traditional rice-importing countries, he said.

“It will be hard to compete with Thailand in exporting white rice. Therefore, our orientation for this year is to focus on controlling residues and expand production of specialty fragrant rice to boost export to the US and EU.”

“The US has a huge demand for fragrant rice. But to export to the market, our rice must meet hygiene and food safety standards.”

The company has decided to rent 100ha of land to cultivate rice for export to the US, he said.

Giang said the company has more than 3,000ha of rice material zones in which it has developed close linkages with farmers and cooperatives in An Giang, Kien Giang and Dong Thap to grow Japonica (a Japanese rice variety) and Jasmine fragrant rice, he said. 

“Asian countries, especially China, have high demand for Japonica rice,” he said.

With a forecast that rice export would continue to face difficulties this year, not only Angimex but also other rice exporters and producers have mapped out measures to boost consumption of their products this year.

Duong Van Hung, director of Tan Cuong Agricultural Services Cooperative in Dong Thap province, which has more than 1,200ha under rice cultivation, mainly fragrant rice, said the co-operative would focus on improving quality to ensure that its rice meets hygiene and food safety standards set by importing countries.

“Currently, we have 200ha for growing organic rice and 100ha for safe rice,” he said. “We collaborated with a rice export company to market our organic rice in the US market and to be accepted by the market.”

Rice productivity following organic cultivation is in general 20-30 percent lower than traditionally planted rice, but selling prices are 30-40 percent higher than traditionally planted rice, he said.

“We will expand the area to cultivate safe rice in the coming time. I think if our products meet hygiene and food safety standards, there will be nothing to worry about in terms of consumption,” he said.

According to the Ministry of Agriculture and Rural Development, Vietnam exported an estimated 4.88 million tonnes of rice last year, earning 2.2 billion USD, a year-on-year decrease of 25.8 percent in volume and 21.2 percent in value.

Deputy Minister Tran Thanh Nam said free trade agreements would open opportunities for Vietnam to enter markets like the US, the EU and Japan, but it would bring challenges due to lack of competitiveness, especially in terms of quality and branding positioning, compared to competitors.

Nam said that rice exports last year did not meet expectations, especially because of market difficulties.

“But I think it was a lesson for enterprises. Previously, we mainly focused on quantity. This should be changed now. Enterprises must establish their own material zones and focus on improving quality of their rice to international standards,” he said.

Pham Thai Binh, director of Can Tho-based Trung An Hi-Tech Farming JSC, a large rice exporter, said consumers both at home and abroad are becoming more and more aware of what they eat and are willing to pay more for safe products.

To improve the competitiveness of Vietnamese rice, farmers and businesses must join hands to create large-scale rice fields, apply modern farming techniques and mechanise production, he said.

“Businesses must play a main role in the connection chain, providing farmers with input materials and strictly supervise the production process of farmers as well as ensure outlets for their products,” he said.

The company has established a close link with farmers to grow fragrant Jasmine rice, Japonica and other rice following GlobalGap and organic standards, he said.

Its rice products are available in many countries, including the US, the EU and Southeast Asia, with exports accounting for 65 percent of its total production output, he said.

According to experts, the variety of rice is an important factor to improve rice quality.

Huynh The Nang, chairman of the Vietnam Food Association, said there are hundreds of rice varieties but many have similar quality.

Researches to create new high-quality rice varieties that are fragrant, soft and different from other varieties should be encouraged, he said, adding that this would improve Vietnam’s rice quality and competitiveness.

Le Van Banh, head of the ministry’s Department of Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production, said that developing brands for rice products was important to help raise the competitiveness of Vietnamese rice at home and abroad.

30 firms win top-brand award     

Sai Gon Giai Phong (Liberated Sai Gon) newspaper hosted a ceremony in HCM City last Saturday to recognise and honour 30 outstanding businesses in various fields with “the most favourite Vietnamese brand names in 2016”, as voted by the newspaper readers.

The awards nominated businesses in the services, tourism, trading, industrial, education, property and other sectors.

Oganised since 2006 in response to the “Vietnamese people prioritise Vietnamese goods” campaign, the annual event aims to encourage businesses to build prestigious, high-quality Vietnamese brand names and to build a consumption culture among Vietnamese people.

Nguyen Tan Phong, the newspaper’s editor-in-chief, said 20 brand names that have been awarded for many consecutive years received “Golden Brand Name” prizes. They include Saigontourist, Bao Viet, Co.opmart, Big C, Vietnam Airlines, Novaland, Vinasum, Samco and Nguyen Kim.

Tran Vinh Tuyen, deputy chairman of the HCM City People’s Committee, said the city leaders hope that businesses winning the awards will develop strongly to form large Vietnamese groups and penetrate the ASEAN and world economies. 

Tay Ninh plans to up farmer income     

By developing an agricultural value chain, the southern province of Tay Ninh expects to raise its agricultural GDP and average farmer income per year from the current figures of US$3 billion and $1,500 to $8 billion and $5,000, respectively, after five years.

Speaking at an international conference held in Tay Ninh Province last week, Pham Van Tan, chairman of the provincial People’s Committee, said Tay Ninh has advantages for agricultural development as its agricultural land accounts for more than 65 per cent (nearly 270,000 ha) of natural land, with rather flat terrain making it easy for agricultural production.

The province is home to the Dau Tieng irrigation system, the largest of its kind in the country, which can supply water to 47,000ha of farmland, he said.

But, majority of the province’s farm produce was consumed as raw produce with low added value, he said, adding that the volume of products meeting quality standards remained modest.

“Export volume was still small, especially exports to demanding markets, such as Japan, South Korea, the US and EU,” he said.

He attributed the situation to small scale production and a lack of connection among stake holders in the production chain.

The provincial agricultural sector is focusing on restructuring its agricultural production, with a concentration on enhancing connections among stakeholders involved in the production chain, and between production and consumption markets, he said.

“The province will set aside about 1,800ha of land (which is revoked from farms) to make zoning plans and develop infrastructure to meet the demand for agricultural development.”

The province will map out policies to attract more businesses to invest in the agricultural value chain in the province and build measures to speed up the application of good agricultural practices and high technologies in its agricultural production to improve competiveness of its farm produce, he said.

Tran Luu Quang, secretary of the provincial Party Committee, said “With a desire to do something to gradually to improve the lives of 78 per cent of the residents living in rural areas, to help farmers get rich on their own land and meanwhile, to help the province to narrow the development gap with other localities in the region, after seven months of active preparation, Tay Ninh’s agricultural value chain for international market integration was initially established.”

Delegates at the conference agreed that agricultural production following value chains is a must because this would help the province’s farm produce meet the market’s quantity and quality requirements and increase farmer incomes.

Under the pilot model, the province will concentrate on developing the value chain for fruits and vegetables since there is a huge demand for the products globally.

Kato Ryoji of the Japanese OTA Floriculture Auction, a leading company operating the OTA wholesale market for flowers in Tokyo, said Japanese people are very fond of Vietnamese tropical fruits since tropical fruits cannot be cultivated in his country.

This offers a great potential for Vietnamese fruits to penetrate the market, he said.

Raj Kumar Sharma, CEO of US-based Sunrise Orchards, said the US also has great demand for tropical fruits like bananas, coconuts, guavas and papayas since there are a lot of people from Asia who have migrated to the US and they all want their home fruits. 

But to access the US market, the fruits must be safe, he said.

Similarity, Kato Ryoji said, “When we import, we care a lot about product quality and traceability.”

Producing fruits and vegetables by value chain would make it easy to trace the origin of a product and ensure their quality, delegates said. They believe that the model would offer great success for the province and raise its agricultural GDP and average farmer income per year from the current figures of $3 billion and $1,500 to $8 billion and $5,000.

HSG steel targets $1b in revenue for 2016-17

Giant steel maker Hoa Sen Group (HSG) targets revenues of VND23 trillion (US$1 billion) for the fiscal year 2016-17, HSG announced at its annual shareholders’ meeting, in HCM City late last week. — Photo HSG

 Giant steel maker Hoa Sen Group (HSG) targets revenues of VND23 trillion (US$1 billion) for the fiscal year 2016-17, HSG announced at its annual shareholders’ meeting, in HCM City late last week.

At the meeting, the company also announced its target of an after-tax profit of VND1.65 trillion ($72 million) for 2016-17.

Total sales for 2016-17 will be over 1.57 million tonnes, it said.

For the 2015-16 fiscal year, HSG posted growth of 130 per cent in profit after tax. In detail, the company reported it gained more than VND1.5 trillion ($65 million) in profit after tax.

Meanwhile, revenue increased by 25 per cent over the firm’s initial projection, reaching nearly VND17.9 trillion ($778 million).

Sales grew 22 per cent, reaching over 1.2 million tonnes.

Last year, the company constructed many projects, including the Hoa Sen plant in Nghe An central province, which will be put into operation this year with a capacity of 1.2 million tonnes per year. The plan of expanding Hoa Sen building material project in Ba Ria-Vung Tau was started in March last year and will be finished this month.

2016 also marks a turning point of HSG as it decided to pour money into the real estate market by building Hoa Sen tower in Quy Nhon city in the south central province of Binh Dinh and a trade centre in Yen Bai Province.

At the meeting, HSG decided to pay a dividend by cash of a maximum of 10 per cent per share.

It also said it will issue 3.5 million of shares at the price of VND10,000 per share to their staff this year. After the issue, the total registered capital of HSG will increase to VND3.47 trillion ($151 million).

Chairman Le Phuoc Vu shared with the meeting that the company is restructuring and HSG will set up joint stock companies in regions.

HSG will be the mother company which holds at least 51 per cent of shares in regional companies.

About the Ca Na Steel Plant, Vu said that all procedures between HSG and Ninh Thuan have been done and the company is waiting for the Government’s decision.

He also added that HSG has hired three consultant companies from India to analyse the feasability of the project.

During the meeting, HSG received the award for best managed company in Asia in the metals and mining sector in a 2016 poll of leading equity analysts by Euromoney magazine. 

New Fortuner launches in Viet Nam     

The Toyota’s new Fortuner 2017 has officially sold nationwide since January 5, 2017.

To meet the demand and diversify customer’s choice, the new Fortuner is launched in Viet Nam with three grades: Fortuner V 2.7L 4x4 4WD, 6AT (gasoline) at VND1.3 billion (US$58,000), Fortuner V 2.7L 4x2 RWD 6AT (gasoline) VND1.15 billion ($51,000) and Fortuner G 2.4L 4x2 RWD 6MT (diesel) at VND981 million ($43,500).

Fortuner V 4x4 is equipped Bi-beam LED headlamp and LED daytime running lights/clearance lamps exude an advanced image. Fortuner V 4x2 and G 2x2 have the Bi-Halogen Projector Ellipsoid System (PES) headlamps bring a strong appearance for new Fortuner.

A high bodyline and powerfully curved door sections complement flared fenders that place emphasis on the tires. Curvaceous shape of door panels and wheel flares combine with sharply carved character lines to create an elegant yet tough appearance.

With the New Fortuner’s sales target of 1,000 units per month, TMV continuously enhances the leading position in sales and market share of all car segments.

Since its first introduction in August 2005, Fortuner has become a favorite car and it has received overwhelming response from our customers with the accumulated sales of more than 1.3 million units as of 2016 around the world.

Fortuner has soon occupied the first position in medium high SUV segment in Viet Nam with the accumulated sales of nearly 62,500 units with a steady Viet Nam Automobile Manufaturers’ Association (VAMA) market share at 50 per cent.

The New Fortuner is the second model of the Innovative International Multipurpose Vehicle (IMV) series introduced in Việt Nam, following Innova.

Siemens Healthineers brings cutting-edge ultrasound system to Vietnam

Siemens Healthineers, part of German industrial conglomerate Siemens AG, just introduced state-of-the art ultrasound system ACUSON NX2TM in the Vietnamese market at the first national ultrasound conference which was held at Hue Central Hospital last weekend.

The ACUSON NX2™ ultrasound system is a smart-inspired solution, providing excellent image quality from a value-performance system, utilising largest-in-class hardware and supporting enhanced operator workflow functionality to improve system uptime and user comfort.

It can be easily upgraded to the advanced applications and value-performance platforms available within the ACUSON NX™ Series portfolio.

Specifically, the acquisition of dynamic imaging is made possible across clinical applications using cross-compatible and ergonomic transducers, designed to reduce injuries and enhance user comfort throughout the exam.

The launching ceremony also witnessed the signing of a contract on providing Vietnam with the first 10 advanced ultrasound systems ACUSON NX2TM between Siemens Healthineers and Ho Chi Minh City-based Hoa Hao Medic medical centre.      

Vinalines gradually finding feet

After years of continuous losses, Vietnam's largest state-owned shipping company Vinalines recorded a consolidated profit reaching the break-even point in 2016, amid the global shipping sector’s extreme difficulties.

The giant earned a pre-tax profit of VND923 billion ($41.95 million) and VND1.139 trillion ($51.77 million) in port operation and maritime services and others in 2016, while incurring a loss of VND1.98 trillion ($90 million) from its shipping business line, said acting CEO Nguyen Canh Tinh at last week's year-end review meeting.

The Vinalines holding company gained a pre-tax profit of VND340 billion ($15.45 million) during the year, up 4 per cent on-year, he added. 

With these positive results, the firm was taken off the list of state-owned enterprises (SOEs) operating at a loss in 2016. In 2015, it was also not on this list with a consolidated pre-tax profit of VND66 trillion ($3.14 million).

Between 2011 and 2014 Vinalines often topped the list of SOEs in the red. In particular, it suffered a loss of over VND3.4 trillion ($155 million) in 2014.

Last year, the firm made an estimated consolidated revenue of VND16.01 trillion ($727.7 million), down 10 per cent on-year and equivalent to 94 per cent of the annual target.

Of the sum, over VND4.7 trillion ($213.6 million) came from port operation, VND4.3 trillion ($195.45 million) from the shipping business, and VND7.4 trillion ($336.36 million) from maritime services and others.

Tinh blamed the ailing revenue on the strong drop in fees driven by the plunging global shipping market, with the Baltic Dry Index (BDI) falling to nearly 240 points.

2016 was a year of extreme difficulties for the global shipping business. Drewry, a leading international provider of research and consulting services to the maritime and shipping industries, forecast that the global shipping business could suffer a loss of $5 billion. 

The world's leading shipping lines, including Maersk Lines, Nippon Yusen Kabushiki Kaisha (NYK Line), German Hapag-Lloyd, Israeli Zim, French CMA CGM, Mitsui OSK Lines (MOL), and Kawasaki Kisen Kaisha (K Line), all incurred big losses. Meanwhile, many others were forced to merge to survive.   

While the shipping business faced difficulties last year, port operation marked a significant growth milestone. 

The volume of goods shipped via Vinalines' ports reached over 78 million tonnes, up 17 per cent on-year, of which container throughput amounted to 3.45 million TEUs, up 22 per cent, while pre-tax profit rose by 58 per cent on-year. 

In 2017, Vinalines will aim to reach a consolidated revenue of VND11.5 trillion ($522.7 million), of which VND4.36 trillion ($198.18 million) would come from port operation, VND2.12 trillion ($96.36 million) from shipping business, and VND5 trillion ($227.27 million) from maritime services and others.

The firm also targets to reach at least a break-even profit this year.

Equitization transparency to be improved

The government has announced the total rate of State ownership in firms that are set to be equitized, instead of fixing rates by sector, as has been the usual practice, under Decision No. 58/2016/QD-TTg issued by the Prime Minister on December 28.

Attached to the Decision is a list of 103 State-owned enterprises (SOEs) in which the State will hold a 100 per cent stake and another 137 that will be equitized in the 2016-20 period.

Among those to be equitized, the State will hold over 65 per cent of charter capital in four, 50-65 per cent in 27, and less than 50 per cent in 106.

SOEs operating in sectors such as national defense and security, nuclear power, and money printing will not be equitized.

Decision No. 58 replaces Decision No. 37/2014/QD-TTg dated June 18, 2014 and will take effect on February 15.

Mr. Dang Quyet Tien, Deputy Director of the Ministry of Finance’s Corporate Finance Department, was quoted by Vietnam News Agency (VNA) as saying that it proves the government’s determination to improve transparency and the effectiveness of the equitization process.

He said that publishing the names of equitized companies and specific rates of State ownership would help avoid enterprises’ petitions for maintaining a higher rate of State ownership, as had previously happened.

Previously, the government only regulated the extent of State ownership rates by sector, not specific SOEs, leading to low divestment, Mr. Tien said.

He said that the average divestment rate at SOEs is now 8 per cent, meaning that the State still holds 92 per cent of charter capital post-equitization.  

SOEs are not willing to equitize because their leaders fear they may be unemployed if a controlling stake falls into private hands, according to Mr. Tien.

Due to poor preparations for equitization, private investors are also not provided with sufficient information and many stakes languish “on the shelf”.      

To ensure that the equitization process benefits both the State and private investors, the government will require better information disclosure by SOEs and may lift the cap on the number of strategic shareholders so as to increase the number of bidders, Mr. Tien added.

He also said that the government would not rush the sale of stakes at one time. Instead, divestment would be divided into many phases, depending on the market situation.

“I think the Vietnamese market is still small, so if we don’t have policies to attract foreign capital it will be difficult for us to reach the SOE equitization targets,” he said.

The Steering Committee for Enterprise Renovation and Development reported on December 28 that the government had sold stakes in 55 enterprises during 2016, bringing the number of SOEs equitized in the 2011-16 period to 554.

The 55 were under the management of the Ministries of National Defense, Industry and Trade, and Agriculture and Rural Development, as well as the Vietnam Rubber Group and the Vietnam Southern Food Corporation.

The State has now sold shares worth more than VND4.493 trillion ($199.69 million) in book value for more than VND7.098 trillion ($315.46 million).

Spanish firm to develop mega park in Hue

The People’s Committee of Thua Thien-Hue province has approved to develop the Hue Amusement and Beach Park at Vinh Thanh and Vinh An communes, Phu Vang district.

Perez Saavedra Hermanos Overseas (PSH) Group from Spain has the 49.5ha project, worth VND1.06 trillion (US$46.7 million) will comprise 1,000 four-star and five-star hotel rooms, 93 villas and various other facilities.

The provincial Department of Planning and Investment said the construction is slated to kick off in the second quarter of 2017 and finish two years later.

The project will make the province more attractive to tourists by providing a wide range of entertainment options, the provincial added.

Protectionism seen hindering farm produce exports

Protectionism is seen becoming one of the main challenges for Vietnam’s farm produce exporters in 2017, especially after Donald Trump was elected president of the United States and the UK voted to leave the European Union last year.

There have been significant changes in global trade. Notably, protectionism has come back in many countries, especially for agricultural products, Minister of Agriculture and Rural Development Nguyen Xuan Cuong said at a press conference in Hanoi on January 5.

As more than half of Vietnam’s farm produce output is exported, the rise of protectionism would affect the nation’s export revenue and agricultural development this year, he said.

In addition, other countries have strongly invested in agriculture to improve food security and raise the competiveness of their farm produce. China has decided to pour US$450 billion into agricultural restructuring, Thailand has set aside US$1.5 billion for rice farming to cope with market challenges, and Myanmar is moving on with an agricultural restructuring scheme.

Meanwhile, last year was tough for the local farming sector as natural disasters hit many parts of the country, causing total damage of VND39 trillion, or three times higher than the five-year average. The Formosa-caused coastal pollution in four central provinces also left heavy consequences, dragging down agricultural growth in the first six months by 0.18%.

However, the sector then recovered with gross domestic product (GDP) advancing 1.36% at the end of 2016. Its export value hit a record high of US$32.1 billion, up US$1.7 billion compared to 2015, while 10 products reported export earnings of US$1 billion or more each.

Notably, brackish shrimp exports were estimated at US$3.2 billion. Meanwhile, veggies exports totaled US$2.4 billion, which for the first time surpassed rice exports with US$1.9 billion. The nation expects to raise veggies exports to US$3 billion a year in the near term.

According to Cuong, the ministry will speed up restructuring this year, focusing on products with export value from US$1 billion, pork exports and local specialties. The industry looks to obtain growth of 2.5-2.8% and export value of US$32.5-32.8 billion. 

Fare price proposed for Metro Line No. 1

The consultant of Metro Line No.1 which connects Ben Thanh Market in District 1 and Suoi Tien Park in District 9 has proposed setting the fare for the city’s first metro line at VND15,000 per person, said Hoang Nhu Cuong, deputy director of the HCMC Management Authority for Urban Railways (MAUR).

At a news conference held to provide updates on urban railway projects in the city, Cuong said a ticket price that helps maintain the operation of the line and encourage the public to use this public transit service would be considered. In addition, the fee for parking must be kept low and bus stops arranged in a convenient way to lure passengers.

HCMC Urban Railway Company will be in charge of weighing a fare price for the metro line, which the HCMC People's Council and the People's Committee would have a final say on, Cuong added.

Regarding the construction pace of the metro line, Le Nguyen Minh Quang, head of MAUR, said the project is slated to be up and running in 2020. When in place, there will be a parking lot for vehicles at each station.

Currently, all packages of Metro Line No.1 are being executed as contracted. Specifically, construction started on November 17 on package 1A to build the Ben Thanh underground station and 515 meters of underground track between Ben Thanh and Opera House stations. The central station may be ready at the end of 2020.

In addition, construction on an underground track between the Opera House and Ba Son stations had also begun, which is now 41% complete. A 17-kilometer elevated track along Hanoi Highway is also now 65% complete. 

Momo, ACB clinch strategic deal

M_Service Joint Stock Company, the owner of MoMo e-wallet brand, has signed a strategic cooperation agreement with Asia Commercial Bank (ACB) to promote mobile payments in HCMC.

Under the agreement signed on January 5, people who already have bank accounts of ACB Online can link their accounts with MoMo app installed on their smartphones for shopping online, paying bills and transferring money. To date, the company has partnered with eight big banks.

Customers can find it convenient to shop and make online payments for more than 200 services available at Momo app including cinema, air and bus tickets, and e-vouchers.

Nguyen Ba Diep, executive vice chairman of M_Service, said M_Service has developed its network with over 5,000 transaction points in many provinces and cities nationwide, helping people access financial services.

Momo e-wallet service is already available for smartphones running on iOS or Android. Launched in June 2014, the service has attracted over two million users so far.  

Goods suppliers ready for Tet

Suppliers of necessities have readied themselves for the upcoming Tet, or Lunar New Year, with higher volumes of goods for the market than last Tet.

Van Duc Muoi, general director of Vietnam Meat Industries Company (Vissan), said the company expects to provide 3,000 tons of fresh meat, including pork and beef, and around 3,200 tons of processed food for the market during Tet.

Vinh Thanh Dat Food Joint Stock Co. in HCMC is stocking up on ten million poultry eggs per month from the beginning of the final lunar month to the end of the first lunar month, its director Truong Chi Thien said.

The volume is equivalent to that of last Tet and egg prices are expected to stay stable during the coming holiday season.

If the market has further demand, Vinh Thanh Dat can still provide more but Thien said he is afraid that consumption may not be that high.

Nguyen Cong Thua, head of Anh Dao Agriculture Cooperative in the Central Highlands province of Lam Dong, said the cooperative will launch 350 tons of products per day on the market during the last ten days of the old lunar year.

Due to unusual weather this year, the volume of vegetables in Lam Dong’s farms has fallen 20% year-on-year, Thua said and predicted that the market can fall short of farm produce.

Prices of vegetables may rise 30% in wet markets during Tet but will stay stable at supermarkets, he said.

The volume of goods prepared for Tet at supermarkets is higher than that of last year.

The Saigon Union of Trading Cooperatives, or Saigon Co.op, the operator of Co.opmart stores, has prepared more than 110,000 tons of goods, up 15% over last year, with the volume of products under HCMC’s price stabilization program rising 5-30%.

Saigon Trading Corporation, or Satra, is expected to put on sale 21,300 tons of products, surging 29% compared to the level it registered with the city’s government.

Companies joining the price stabilization program will cut prices of many products in days near Tet. Supermarkets participating in the stabilization program will extend opening times in days before Tet.

In particular, from January 17 to 24, they will be operating from 7 a.m. to 11 p.m. every day. From January 24 to 26, they will open at 6 a.m. and close at midnight. On the 30th day, or the final day of this lunar year, they will close at noon.

After Tet holiday, which falls on January 28, supermarkets will resume operation from the second day of the first lunar month, opening at 8 a.m. and closing at noon.

Committee set up to deal with 12 loss-making projects

The Prime Minister has established a steering committee to resolve the shortcomings and weaknesses of 12 loss-making projects whose owners are administered by the Ministry of Industry and Trade.

The committee will carry out inspections, audits and investigations to determine the state of these projects and the enterprises in charge, as a basis for a restructuring plan. In addition, the responsibilities of related organizations and individuals should be clarified as well, the Prime Minister emphasizes.

The document on this matter released on Wednesday appoints Deputy Prime Minister Vuong Dinh Hue as head of this committee, and Minister of Industry and Trade Tran Tuan Anh and Minister of Finance Dinh Tien Dung as deputy heads.

Other ministries and agencies concerned shall assign their deputy ministers or equivalents to the steering committee.

The committee is responsible for directing the trade ministry, relevant business groups, corporations and units to fulfill specific requirements and carry out the solutions set out by the Prime Minister to tackle the problems. It will assess the production capacity of the domestic enterprises, and the import and sale of products related to each project in order to propose specific solutions for them.

In addition, the committee will study and apply the flexible rules in the trade agreements that Vietnam has signed to best protect the domestic market, but in line with international commitments. It is also in charge of controlling and reducing production costs, and negotiating with partners on investment cooperation or project transfer.

Moreover, the steering committee shall request ministries, relevant groups and corporations to make comprehensive evaluations of the projects in question, from the policy to the implementation and the operation of these projects. Particularly, technology, equipment, and the quality of management staff and contractors should be strictly examined.

The Prime Minister finds it necessary to thoroughly handle the foot-dragging projects, recheck cost overruns at each stage and each project, identify causes and propose solutions for dealing with violations.

There are currently 12 industry and trade projects with losses of trillions of dong whose names were made public a few months ago.

Most of these projects have turned inactive or never been able to operate. The leaders of some projects have fled abroad to dodge responsibility.

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