Vietnamese community in Russia worried about ruble fall

The Vietnamese community in Russia has expressed their concerns over the Russian ruble plunge against the U.S. dollar from 32 to 54-55 rubles a dollar over the past several months.

The Russian market has seen prices of imported commodities increasing sharply such as food, beverages, household appliances, clothing, electronic devices, autos and building materials. Although prices of domestic goods remain quite stable, low-income earners are still worried.

A lot of traders who often make transactions in U.S. dollars at many commercial centers in Russia also show their anxiety about the economy because the Russians may cut down on spending due to their shrinking incomes.

Meanwhile, some Vietnamese apparel facilities around Moscow are running into difficulties as consumption is poor due to the warmer weather in addition to the Russian ruble crash. It is hard to sell winter clothing because it was not too cold during November.

In the annual state-of-the-nation address by President Vladimir Putin last Thursday, the Russian government officially announced heavy punishments for speculation triggered by organizations or individuals.

ACBS investment in ACB infringes law, say bank leaders

Asia Commercial Bank (ACB) board members said at an appeals hearing last Friday and at a lower court in June that ACB Securities Co.’s acquisition of ACB shares through investment firm ACI had violated regulations.

At the hearing on ACB’s investment policy, ACB general director Do Minh Toan said this investment tactic was against law. However, key defender Nguyen Duc Kien insisted ACBS had made no direct investments in ACB.

According to the verdict, the ACB board decided in 2009 to provide a credit ceiling of VND700 billion for ACBS to buy certain stocks with good prices and high liquidity as it was sitting on huge amounts of cash.

In his then capacity of chairman of ACB’s investment council, Nguyen Duc Kien told ACBS to make arrangements for ACI and financial investment firm ACI Hanoi, which were owned by Kien as major shareholder, his family and ACB, to acquire ACB shares.

Nguyen Van Hoa, ACB chief accountant, said an auditing report until June 2010 of ACBS indicated the company had invested in the bank, a practice which is banned by existing regulations.

According to the report, ACBS spent more than VND1 trillion on ACB shares, Hoa said. Although ACI was the buyer, it used the ACB credit for ACBS to fund its purchases of ACB shares.

Hoa said ACI was the buyer of ACB shares but the real holder was ACBS and that the money came from the bond sales to Kien Long Bank and Vietbank.

At the lower court, Nguyen Ngoc Chung, acting general director of ACBS, seemed to beat around the bush. As regulations ban ACB to directly inject money into its subsidiary ACBS, which in turn could not buy ACB shares, Kien asked ACBS to issue bonds for Vietbank and KienLong Bank.

But Vietbank and KienLong Bank used deposits from ACB to buy ACBS bonds. Chief accountant Hoa said he had transferred money to these two banks to conduct the bond transactions because the two banks had trouble with liquidity at the time, so they needed ACB to deposit money at their institutions.

Hoa said Kien and the former general director of ACB, Ly Xuan Hai, both instructed him to do it.

All what the ACB executives said at the appeals hearing is now against Kien.

At the lower court in June this year, Kien was sentenced to 30 years in jail on four counts: expropriation of others’ assets, intentional violations of State regulations on economic management resulting in serious consequences, tax evasion and illegal trading practices.

German firms pep up health market

German firms are hungry for a bigger slice of Vietnam’s lucrative pharmaceutical and healthcare industry cake.

Fabrice Leguet, head of Siemens Healthcare in Vietnam, told VIR that Siemens “is proud to be the number one supplier of diagnostics solutions in the Vietnamese market, combining the strengths of both in vitro and imaging diagnostics.”

“We aim to supply Vietnamese healthcare providers with the most innovative medical technologies to properly diagnose and treat patients,” he said.

“For some patients, availability of the equipment is a question of life or death. For investors, it’s a question of getting the most out of their investment. We invest heavily in people and technical training and we are expanding our global state-of-the-art service processes in Vietnam,” he added.

Since 1993, Siemens has provided the most innovative technologies in imaging and laboratory diagnostics to numerous hospitals and clinics throughout the country.

German leading healthcare product maker B. Braun Melsungen AG has planned to raise its compound investment capital in Vietnam to  $270 million over the next seven to nine years with most of the investment made within the next two to three years.

After more than two decades in Vietnam, B.Braun has two medical plants in Hanoi. The firm is investing an additional $50 million in the second stage of its plant in Thanh Oai district this year, raising the total investment for this plant to $94 million.

When the second stage of its third plant, also in Thanh Oai, comes into operation by 2016, total investment in the two plants in Thanh Oai will increase to $191 million.

B.Braun has subsidiaries in 60 countries including China, India and Japan. Vietnam is the firm’s second biggest manufacturing base in Asia, following Malaysia.

According to the German Business Association in Vietnam, other firms like Boehringer Ingelheim International, Draeger Medical Vietnam, Rudolf J.H Lietz, Fresenius Kabi, Bayer Schering Pharma, and Merck are also operating successfully in Vietnam.

Established in 2010, Merck Vietnam is engaged in the importation, marketing, distribution and trade of laboratory and specialty chemicals, which provide the Vietnamese market with high quality chemical products for the pharmaceutical, chemical, food processing, cosmetics, and painting industries, as well as for use in environmental monitoring.

“We aim to establish trustworthy relationships with our customers and partners, to excel in product and service efficiency, through constant improvement and innovation,” said the company’s managing director Frederic Fack.

Vietnam’s healthcare industry has rapidly developed and this trend looks set to continue. Increasing numbers of hospitals and clinics are being equipped with modern technology and the demand for high quality patient care services is on the rise.

“The Vietnamese government also supports the industry’s development with no import tariffs on medical equipment,” Leguet of Siemens said.

According to London-based Business Monitor International Company’s (BMI) Pharmaceuticals and Healthcare Report for the fourth quarter, the attractiveness of Vietnam’s pharmaceutical and healthcare market is steadily increasing. While structural challenges remain - such as the country’s ageing population, as well as poor quality healthcare infrastructure and personnel. Growth in expenditure is supported by a significant disease burden, the new insurance law, introduction of new products, more corporate investments and better regulations.

Manulife Vietnam enters in bancassurance partnership with Mekong Housing Bank

Manulife Vietnam, a leading life insurer in Vietnam, and Mekong Housing Bank (MHB), last week signed a three-year bancassurance partnership that will enable Manulife Vietnam to sell life insurance solutions to MHB’s clients in Ho Chi Minh City and Hanoi.

The partnership will allow Manulife Vietnam to tap into MHB’s extensive network in the two cities and expand its business there.

MHB currently has 60 branches and transaction offices in Ho Chi Minh and Hanoi. As part of the agreement, Manulife Vietnam will also train the bank’s employees on its life insurance products.

“We are delighted to sign this partnership with MHB, one of Vietnam’s fastest growing banks. The agreement is a win-win for Manulife Vietnam and MHB as it allows both organisations to provide the most suitable financial services and life insurance solutions for their clients,” said Paul Nguyen, CEO of Manulife Vietnam.

Manulife Vietnam’s bancassurance partnership with MHB is the latest of several agreements the company now has in place with other banks in Vietnam such as ANZ and Techcombank, to provide life insurance solutions to clients.

A member of Manulife- a leading Canada-based financial services group, Manulife Vietnam is the first 100 per cent foreign-owned life insurer in Vietnam. The company, founded in 1999, currently has a network of close to 36 sales offices in 28 major cities throughout Vietnam.

Dien Quang tactics to maintain leading position

Leading domestic lighting manufacturer Dien Quang Lamp JSC is ramping up efforts to maintain its pole position amid a very challenging business environment.

Tapping foreign markets and constantly rolling out new products are core factors helping Dien Quang Lamp (DQC) retain its impressive market share.

The company’s products are now available in more than 30 countries and territories, with export value surpassing VND300 billion ($14.2 million) out of DQC’s total revenue of VND795 billion ($37.8 million) last year.

To avoid competing head-on with strong foreign brands, DQC has chosen similar foreign markets to Vietnam which lack strong local brands, according to the company’s chairman Ho Quynh Hung.

Venezuela is one such market. In 2008, the company established the VietVen energy-saving lamp manufacturing complex in Venezuela via a $300 million joint-venture in with DQC holds a 30 per cent stake.

The complex has operated for two years, providing energy-efficient products for the Venezuelan government.

Company chairman Ho Quynh Hung recalled the doubts some people expressed about the project, “We will not enter in a joint venture if we did not grasp one the two factors - technology and market. Our partner had a clear plan that by 2017 when the plant completes its next-phase construction, its products will serve both domestic markets and be ready to export products to surrounding countries.”

“Investing abroad is one of our priorities and we will take on further ventures when opportunities come,” Hung added.

In the domestic market, the company has to compete fiercely with both local and foreign rivals such as Philips, Osram, Toshiba and Panasonic.

To boost competitiveness, DQC has focused on developing its brand and promoting research and development.

In the past three years, its 50-staff strong R&D centre has launched some 600 new products focusing on products with unique features and more affordable versions of existing products.

For instance, the company has developed humidity-resistant compact lamps meeting IP65 international standards on humidity and dust resistance, making them suitable for outdoor lighting and use in agriculture-fishery production, meanwhile its energy-saving LED lamps are available in a diverse range of styles that meet different cost points.

Sales in the domestic market are expected to contribute VND601 billion ($28.6 million) to the company’s revenue this year, up 24 per cent on-year.

In the first nine months this year, DQC reached 76 per cent of its full-year revenue target, up 56 per cent on-year and its profits rose 56 per cent on-year and more than double its full-year target.

Human resources have also proved a big challenge to the company development.

“DQC is finding diverse ways to retain talent. We have worked with consultants to adopt measures such as periodic wage increases, development of a company culture and offering bonus shares to employees,” Hung shared.

Tasting Orfarm’s organic pork from only VND19,000

ORFARM starts its Special Tasting Days for its organic pork with prices at only VND19,000, VND29,000 and VND59,000 per pack of organic pork at all its showrooms in 72 Tran Dang Ninh and 13 Do Quang, Cau Giay district and 198B Thuy Khue, Tay Ho district, Hanoi.

Over the past year ORFARM has tried its utmost to produce and distribute high quality organic farming products to consumers in Vietnam. With its multiple choices of high quality organic and safe farming products featuring from organic pork, organic chicken, organic eggs, organic fish, organic cold meat and organic vegetables to Global GAP vegetables and upscale imported food, the Vietnam’s First Organic Food brand contributes to help local clients understanding obviously and deeply the core value of EM food products to their health and surrounding environment. As fact that now more and more people show their high demand and request to farming products that meet all the organic, high quality, safe and environmental friendly certification.

This is really good news for such producers and distributors as THUY THIEN NHU farms and ORFARM brand. On this occasion, ORFARM wishes to give their thanks to all clients who have believed and supported strongly the brand’s food since its opening last December. Otherwise, ORFARM also wants to create the good chance for all other clients to taste its organic food which bred and grown perfectly according to Japan’s EM technology with the most acceptable prices under the cost for production as a greeting for a better health, a better life in the upcoming Christmas season and New Year 2015.

Furthermore, based on the higher and higher demand of clients, after a year investing, producing and distributing farming products to Hanoi market, it’s a great news for ORFARM to run successfully three official ORFARM showrooms in Hanoi. And to meet the demand of its clients, the brand is now expanding its EM technology farms to more than three to increase its production capacity as well as to diversify processed food items. Importantly, all the production processes at all ORFARM’s farms are applied and controlled strictly according to EM technology from producing animal food, to creating animal bed, from feeding and caring animal, to growing vegetables and fruit trees, as well as to improving the surrounding environment.

Currently, ORFARM showrooms provides such organic products as pork, chicken, eggs, fishes, vegetables and cold meats as klobasa, salami, sausages and bacon. All ORFARM fresh meats are frozen to ensure the quality, hygiene and taste of products. Besides to create clients more conveniently, it also provides other imported high quality products, including American and Australian beefs, Canadian cod fish, Norway salmon as well as spaghetti, biscuits and chocolate.

All ORFARM fresh and cold meat products satisfy the guidelines set out by Japan's EMRO trademark using EM technology™ (Effective Microorganism). The technology is based on the idea of a coexistence with native and originally-dominant microorganisms, not exclusion of them. EM technology has no adverse effects and is in fact beneficial to plants, animals, and humans. EM technology allows the farm to suppress the putrefactive microorganisms. It does this by ensuring the process of fermentation as opposed to putrefaction. As a result, living organisms as well as inorganic materials impede deterioration.

Showroom 1: 72 Tran Dang Ninh street, Cau Giay district, Hanoi, tel: 844 3793 9966

Showroom 2: 13 Do Quang, (Lane 61, Tran Duy Hung street) Cau Giay district, Hanoi, tel: 844 3556 4755

Showroom 3: 198B Thuy Khue, Tay Ho district, Hanoi, tel: 844 3847 1166

If you are too busy to get to the showrooms, the brand offers free delivery for all guests in four main districts of Hanoi ordering through its hotline at 84918836911/84918787743 or Website: www.orfarm.com.vn or Fanpage: www.facebook.com/orfarm.com.vn

Chevrolet Cruze Black Edition now available for sale at VND682 million

General Motors Vietnam (GM Vietnam) has recently announced the official price of Chevrolet Cruze Black Edition, which has been set at VND682 million ($32,470, VAT included).

The Chevrolet Cruze Black Edition in Vietnam, with a vehicle identification number (VIN) starting from 9888xx, is available in a limited number with only 50 units on sale since this December.

Previously, Chevrolet Cruze Black Edition was introduced at the Vietnam Motor Show 2014 in late days of November in Ho Chi Minh City. The popular Cruze LTZ sedan has added sporty features such as 17-inch black wheels, a rear spoiler, a luxurious black leather interior and a black exterior.

The best-selling Chevrolet model crossed the 3-million milestone in August, just 16 months after selling its 2 millionth model. Chevrolet Cruze has proved itself a global player among small cars in over 118 countries, and US President Barack Obama has called the Cruze “the car of the future.”

In Vietnam, Chevrolet Cruze has become a favourite car model thanks to its stylish design, powerful performance, and luxurious interior.

“The most-wanted sedan now comes with sportier and outstanding black exterior and interior features that will enhance its appeal and attract customers who are looking for more style. By being limited edition, it will be a valued possession for Cruze lovers”, said Gaurav Gupta, GM Vietnam managing director.

The Cruze Black Edition comes with halogen headlamps, a four-way adjustable steering wheel, rear parking sensors, automatic air conditioning, a smart key and theft deterrent.

The cruise control system in the 2014 Cruze Black Edition automatically controls the throttle-accelerator pedal linkage so that the car maintains the set speed – even when going uphill or downhill –without the driver having to press the accelerator.

The Cruze Black Edition is powered by a 1.8L DOHC Ecotec push-start engine with Variable Valve Timing (VVT) that delivers optimal performance and efficiency.

Advanced electric cooling helps maintain the engine’s temperature for worry-free operation. The engine is mated with a six-speed automatic transmission.

General Motors Vietnam, a member of GM Southeast Asia, has headquarters and a manufacturing facility in Hanoi’s Thanh Tri district. It has an annual assembly capacity of 30,000 vehicles and operates a nationwide sales network of 15 dealer facilities in major cities.

Chevrolet, founded in 1911 in Detroit, is now one of the world's largest car brands, doing business in more than 140 countries and selling more than 4.9 million cars and trucks a year.

Minister of Public Security commits ensuring security and safety for Japanese firms

Minister of Public Security, General Tran Dai Quang on December 8 received Takahashi Kyohei and Nakamura Kuniharu, co-chairmen of the Japan-Vietnam Economic Committee under the Japan Federation of Economic Organizations (Nippon Keidanren).

General Quang spoke highly of the current visit to Vietnam by Japanese business delegation led by the co-chairmen.

He appreciated the effective cooperation of Japan, particularly the Japan Federation of Economic Organizations, in fostering Vietnam-Japan economics, trade and investment relations.

Quang praised contributions of the Japan-Vietnam Economic Committee to the implementation of the two countries’ joint initiative to improve business climate and attract more Japanese investors to Vietnam.

Vietnam’s police force will continue creating the best possible conditions and ensuring security and safety for Japanese firms operating in Vietnam, he pledged.

Takahashi Kyohei and Nakamura Kuniharu in turn expressed their pleasure at the fruitful cooperation between Vietnam and Japan in recent years. They hoped that their ongoing visit would achieve good results, aimed at nurturing bilateral friendship and cooperation and boosting socio-economic development in each country.

Binh Dinh province attracts most Russian investment at US$1 billion

Russia has directly invested about US$1.95 billion in 104 projects in Vietnam, and ranks 17th among 101 nations and territories that are investing in the country.

The Planning and Investment Ministry's Foreign Investment Agency (FIA) announced this in a report late last week, adding that Russian capital investment averages US$18.82 million per project, higher than the general average of US$14.3 million for all foreign direct investments in Vietnam.

In the first 11 months of this year alone, Russia had seven new projects and three projects with supplemented capital, registering a combined investment value of US$11.17 million.

Russian investors have invested in 13 out of 18 economic sectors of Vietnam. They have invested US$1.12 billion in 32 projects in the manufacturing and processing sector, US$581 million in seven projects in the mining industry, and US$72.7 million in three projects in the real estate sector.

The oil and gas sector attracted six projects worth US$531 million, or 27% of all investments, noted the FIA.

There are 63 wholly Russian projects worth US$1.26 billion, 33 projects worth US$256 million that are joint ventures and four projects valued at US$381 million that are business co-operation contracts, while two projects are being implemented as joint stock companies.

The investors are present in 24 out of 63 provinces and cities nationwide. The central Binh Dinh Province attracts the largest amount of Russian capital of $1 billion, followed by Hanoi with US$129.5 million, and the southern Ba Ria-Vung Tau Province with US$52 million.

Hoan Cau unveils Diamond Bay urban area

Hoan Cau Co. has publicized its high-end Diamond Bay urban area, which is part of a big-ticket Diamond Bay City in Nha Trang City, Khanh Hoa Province after the master plan of the urban area got approval of the provincial government.

The 80-hectare urban area is under development with 2,000 rooms and expected to be put into service next year.

Tran Ngoc Nhat, director of sales and marketing at Hoan Cau, said villas and apartments will be offered for sale this month under the timeshare model.

The resort-recreational complex Diamond Bay City covers a total area of 300 hectares on Nguyen Tat Thanh Street connecting Cam Ranh Airport and downtown Nha Trang. Diamond Bay City is inspired by Palm Islands and other famous architectural works in Dubai and the Maldives.

The complex’s first phase with an 18-hole golf course, Diamond Bay Resort with over 340 rooms, convention center and recreational facilities were put into use in 2008.

Construction of Phase 2 is underway with Diamond Bay Resort 2, villas overlooking the golf course, resorts with 1,100 apartments and 120 golf-view villas to be finished in the second quarter of next year.

Hoan Cau plans to build sea-view villas on hills, ecological villas and villas on the waters in the next phases.

In addition to urban areas, Diamond Bay City has a commercial center, international hospital, school and marina.

Nhat said Diamond Bay City, when completed, will consist of over 15 high-end resorts and hotels of four- to seven-star ratings with over 15,000 hotel rooms and 4,000 villas. The entire project is worth an estimated US$4 billion and will be completed in the next 7-10 years.

Experts say local banks should be more active on social media

Experts said at the ASEAN Banker Forum in HCMC last week that local banks should take advantage of social media to promote their products and services.

In addition to conventional distribution channels such as branch, transaction office, automated teller machine (ATM), point of sale (POS), call center, home banking and phone banking, experts said internet banking, mobile banking, tablet banking and social media would grow fast in the banking sector.

Can Van Luc, a senior expert of Bank for Investment and Development of Vietnam (BIDV), said a survey of Capgemini conducted in 32 nations with the participation of 17,000 customers this year shows 68% of people in America recognize the role of social media in maintaining customer relations, followed by 57% in the Asia-Pacific and 55% in the Middle East and Africa. “The number of Facebookers worldwide is rising and they would use Facebook for banking transactions,” Luc said.

According to experts at the forum, what is going on in Europe is an inevitable trend. Banking transactions via branches and ATMs account for 5% and 25% of the total respectively and tend to decrease there. In the Netherlands, more than 90% of people transact online.

In Vietnam, 44% of people are using the Internet, 38% and 30% higher than the average rates of the world and ASEAN respectively. However, local banks have yet to make the most of social media.

Hubert W.E. Knapp, business architect of FPT Information System, said a modern bank should have a professional team responsible for meeting customers’ needs on social media, paying close attention to safety and protecting their privacy.

Rahn Wood, head of retail banking at Vietnam International Bank (VIB), said Vietnam has a mere 25% of its population using banking services. So how the remainder can get access to these services is a mission of local banks.

36% local firms join global production networks

Only 36% of Vietnamese businesses take part in global production networks, including direct and indirect exporting, while the rate in Malaysia and Thailand is 60%.

According to the Vietnam Chamber of Commerce and Industry (VCCI), the involvement of local firms in the global value chains is lower than economies at the same level in the region.

This situation makes Vietnam’s supply chain dispersed and less benefited from foreign investment, the transfer of technology and knowledge and improvement of productivity.

It can be attributed to the fact that only 4% of Vietnamese businesses are of large and medium sized and as a result, they are not competitive and less involved in the supply chains, just focussing on the domestic market.

Conference raises US$680 million for development

Over 200 delegates gathered at a conference in Hanoi on December 8 to discuss ways to promote investment and assistance for socio-economic development in ethnic minority and mountainous areas.

The delegates, from relevant ministries, businesses, embassies, international bodies and foreign non-governmental organisations (NGOs), heard a report on Vietnam’s socio-economic development and policies aimed at attracting investment and foreign aids for the ethnic minority areas.

In addition, they   outlined orientations and measures to implement a project on strengthened international cooperation to support socio-economic development in the region and a national program to mobilize aids from foreign NGOs in the period 2013-2017.

Speaking at the conference, Deputy Prime Minister Nguyen Xuan Phuc praised international organizations and partners for their great support for the socio-economic development in the ethnic minority and mountainous areas in Vietnam.

The Deputy PM emphasized the need to devise proper policies to pool all resources from the state, development partners and communities to upgrade transport infrastructure, reduce poverty and ensure social welfare.

He also underscored the importance of the application of advanced technologies in the agro-forestry sector and development of of cooperative models with  foreign partners.

The focus should be on promoting eco-tourism, culture, history; mining, mineral processing and building small and medium-sized irrigation projects associated with hydroelectric power plants, Phuc noted.

At the conference, foreign NGOs committed to fund US$200 million for 261 charity programmes and and development assistance projects in the next three years while Viettel and the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) pledged US$480 million to help stimulate socio-economic development in 2015.

Malaysia - a leading investor in Vietnam

Malaysia is a leading country investing in Vietnam with foreign direct investment (FDI) of US$10.74 billion in 478 projects measured on a cumulative basis as of November, according to the Foreign Investment Agency.

The average size of a Malaysian project calculates out to US$22.5 million, which is US$8.2 million higher than the US$14.3 million average for all FDI projects in the country.

Malaysian businesses have invested in 18 out of 21 economic sectors and in 33 out of 63 provinces in Vietnam. They are most heavily invested in the real estate sector with FDI of US$5.53 billion in 14 projects.

HCM City leads in the attraction of FDI with 175 projects, followed by Hanoi with 83 and Dong Nai with 33.

A US$3.5 billion Berjaya international university project, a US$1.16 billion Yen So Park project and a US$930 million financial centre in HCM city are among the largest projects completed to date.

Pepper exports turn into ‘black gold’

The value of Vietnam pepper exports has surged 35.7%in the eleven months leading up to December to US$1.16 billion on-year, crossing over the 150,000 tonne benchmark for the year.

Vietnam produces approximately 30% of the world’s pepper yield and about 50% of the world’s export volume. The US, United Arab Emirates, the Netherlands and India are the leading consumers of Vietnamese pepper.

Vietnamese pepper has faced stiff competition from India, however the highest growth for pepper exports in the period has been seen in the Pakistan market, with more than a two-fold on-year increase.

Vietconstech 2014 opens in Ha Noi

The International Exhibition of Construction Technology (Vietconstech 2014) opens here today.

The four-day event aims to boost development and scientific and technological application in the construction sector.

More than 200 stalls of nearly 100 companies from Viet Nam, Japan, Korea and China, as well as Germany and the United States, will showcase construction technology products, construction materials and construction and mining equipment.

International conferences on construction technology and construction experiment and verification will be held on the sidelines of the event, which expects to attract about 10,000 visitors.

Investment Law decree coming soon

The first decree of the Law on Public Investment will soon be issued, Minister of Planning and Investment Bui Quang Vinh said during last week's Viet Nam Development Partnership Forum (VDBF).

Vinh told listeners that the decree would create favorable conditions for participants in public-private partnership (PPP) projects.

The Government was focusing on gradually shifting investment from the State-run sector to private businesses, he said, stressing that the State budget would directly contribute to construction of major infrastructure facilities by the private sector.

Last September, the Prime Minister approved the development of a PPP decree consolidating Decree 108 and Decision 71.

Viet Nam has set several regulations over co-operation between the State and private sector in the past, including 2009's Decree 108/2009/ND-CP on build-operate-transfer, build-transfer-operate and build-transfer contracts and 2010's Decision 71/2010/QD-TTg on pilot PPP investment.

In the last two years, the Ministry has received guidance from other Vietnamese ministries as well as technical support from development partners such as Asia Development Bank and the World Bank, in addition to international organisations and countries including Japan, South Korea and the United Kingdom.

During the forum, NGOs urged the Government to ensure that the law provided a level playing field and would involve NGOs and associations in the provision of public services.

The ministry would continue to improve the decree to create a fair and transparent environment for non-government organisations and associations engaged in providing PPP services in Viet Nam, Vinh said.

Ministries and agencies at both central and local levels are now identifying financing sources before approving investments, according to a Government report presented at the forum.

With regards to investment using the State budget or proceeds from Government bonds, relevant agencies have compiled a regulation on identifying financing sources before making decisions.

The report also stated that allocation of investment funds was a priority and a considerable amount of funding was earmarked for annual counterpart contributions and clearing the backlog of capital investment.

As a result, the number of new projects decreased in comparison with previous years. Spending was more focused, project implementation was accelerated and projects produced results in a shorter time.

Funds were allocated for a medium-term period of 3-5 years to allow more flexibility for ministries and agencies to use them effectively.

Dong Nai registers rise in wood exports

The southern Dong Nai province exported wood products to 80 markets worldwide, earning US$884 million, during the first 11 months of this year, up 9.1 per cent year-on-year.

According to Le Van Danh, director of the provincial Industry and Trade Department, the figure for November alone was $103 million, an increase of 17 per cent compared to the same month last year.

Wood products have become one of the four largest foreign currency earners of the provinces, besides footwear, garments and textiles, and fibre.

The largest export markets of Dong Nai wood products are: the United States, which bought $568 million worth of goods in the reviewed period; Japan with $103 million; the Republic of Korea (RoK) with $88 million; Canada with $37 million; Australia with $29 million; and the United Kingdom with $26 million.

Chairman of the provincial Handicrafts and Wood Industry Association Phan Van Binh said that the association has organised a number of trade promotion programmes with the aim of supporting local businesses in studying markets and taking part in exhibitions and fairs.

He added that the member businesses are investing in planting trees in other provinces as well as in Laos and Cambodia, in order to ensure supply of raw material for production.

The provincial Industry and Trade Department projected that wood product exports will keep growing in 2015, as several local enterprises have received orders till the second quarter next year.

VN, EU officials discuss free trade challenges

Vietnamese officials, representatives from the European Union (EU) delegation and experts from Singapore, Thailand and the US attended a seminar in Ha Noi yesterday to discuss challenges in the implementation of the Viet Nam-EU Free Trade Agreement (VEFTA).

During recent meetings, Vietnamese and EU leaders emphasised their political resolve to sign the deal in early 2015, according to chairman of the Party Central Committee's Commission for External Relations Hoang Binh Quan.

Noting that the EU had surpassed the US to become Viet Nam's top export market and its member nations were leading foreign investors in the country, he said the VEFTA would open up a multitude of opportunities for both sides.

Vietnamese businesses would gain better access to the 500 million-strong EU market and attract more investment from this bloc.

However, it was crucial to identify the challenges posed by the agreement and devise feasible and comprehensive solutions, especially in economic, trade, legal and institutional aspects, Quan said, adding that the seminar would contribute to efforts by Vietnamese ministries and localities to speed the implementation of the agreement.

Rabea Brauer, head of the Konrad Adenauer Stiftung foundation's office in Viet Nam, said each country needed to integrate strongly into the global economy and the VEFTA would fuel collaboration between the two regions.

The agreement would also help Viet Nam attract more foreign investment, according to Vo Tri Thanh, deputy head of the Central Institute for Economic Management (CIEM). It would also boost FDI flow and bring more technology and funding from the EU to Viet Nam, expanding the country's opportunities to participate in the global supply chain.

As a result, Vietnamese businesses could provide intermediary services for FDI enterprises and create a support industry for European manufacturers.

While the agreement would bring competitive pressure, it also provided the country with the opportunity to boost its competitiveness in the long run, he said, adding that in this regard, participating in this agreement would yield more benefit than ASEAN +1 trade agreements.

The seminar also included discussions on economic, commercial and legal challenges.

Retail market moves towards modernisation

Many giant international retail groups such as Auchan, Robinson and Walmart are likely to set up more convenience stores, supermarkets and big commercial centres in Vietnam when the country completely opens its retail market next year, said the Vietnam Business Forum Magazine (VBF).

Vietnam 's retail market is changing extensively, becoming more modern and integrated. In the first ten months of 2014, total retail sales nationwide reached nearly 2,400,480 billion VND, up 11.1 percent compared to the same period of 2013.

Total retail sales of goods and services for 2014 are projected to reach 2,970 trillion VND, up 11.3 percent compared to 2013.

According to the Vietnam Retailers Association, as of 2013, Vietnam had about 724 supermarkets, 132 commercial centres, a few hundred convenience stores, nearly 9,000 markets of various kinds and about 1 million family stores.

By 2020, the country is expected to have about 1,200-1,300 supermarkets, 180 trade centres and 157 shopping centres. Currently, this type of distribution is claiming about 25 percent of the Vietnam distribution market.

According to Nguyen Tien Vuong, Deputy General Director of Hanoi Trade Corporation (Hapro), in recent years, businesses have started to conduct more drastic measures to renovate, construct and expand trade infrastructure systems in the city as well as some northern provinces . So far, Hapro has had 2 HAPRO Shopping Centres, 3 Market Centres, 40 supermarkets and HaproMart convenient stores, 44 Haprofood shops selling guaranteed products and other specialised store systems.

According to Le Viet Nga, Deputy Director of the Department of the Domestic Market (Ministry of Industry and Trade), local enterprises have recently expanded distribution channels in order to get closer to consumers across the country. A notable example was Vinatex with the chain retail supermarkets Vinatexmart. Besides Vinatexmart, the member units of the group such as Viet Tien, Garment 10, Duc Giang, Hanosimex and Phong Phu also actively opened stores and dealers to introduce products into all provinces and cities across the country. As of 2013, there had been 4,125 stores (a 4 percent increase compared to 2012). In 2014, this figure is expected to reach 4,286 stores.

Sharing experiences doing business in Hanoi , Dang Thuy Ha, Customer Director of Nielsen Vietnam in the northern region, said the retail sector was ushering in a new era. Shopping trends in the digital era tended to steer toward e-commerce with modern technology. Vietnamese retailers should focus on category management and services such as loyal customer cards to catch up with the development trend of regional modern sales channels.

According to the Vietnam Retailers Association, although foreign investors in the retail sector account for only 3.4 percent of the businesses involved in this sector, they have gained the strongest growth rate, reaching over 21 percent. The competition between domestic and foreign enterprises has been getting fierce, but it does not mean that domestic firms are losing their “home ground” or falling into a passive situation.

Chairperson of the Vietnam Retailers Association Dinh Thi My Loan was quoted as saying that foreign firms getting into Vietnam 's retail market are often widely advertised, so people think that they have a strong presence. In fact, however, modern retail channels account for about 25 percent only and almost all foreign retailers are investing into these channels alone.

Some local strong retailers indicated by Loan include Pico, Nguyen Kim, Tran Anh. Reputable networks of local businesses such as Fivimart, Intimex and Coopmart also have more advantages than foreign competitors.

According to David Alan Treadgold, Member of the Advisory Council of Oxford Institute of Retail Management, Vietnamese businesses should prepare themselves fully in terms of technology, human resources and management to cut costs and improve competitiveness.

An Giang aims to tap huge potential

The Mekong Delta province of An Giang, which shares nearly 100 kilometres of its border with Cambodia, has enormous potential for socio-economic development, the Vietnam Investment Review (VIR) reported.

With two international border gates - Tinh Bien and Vinh Xuong, and two national border gates - Khanh Binh and Vinh Hoi Dong, the province is regarded as a major economic and trade hub, connecting the three major cities of Ho Chi Minh City, Can Tho and Phnom Penh and serves as an important gateway for trade exchanges among localities in the delta region and Cambodia and other ASEAN member countries.

An Giang border gate economic zone covers 256.8 square kilometres, and is divided into three functional zones: 99 sq.km Vinh Xuong border economic zone (EZ), 92 sq.km Tinh Bien border EZ, and 74 sq.km Khanh Binh border EZ.

In the previous years, the province has concentrated on calling for investment into infrastructure to help fostering tourism and border economic development.

Residents in border areas have been supported in terms of agricultural, industrial, trade, services, and tourism development to gradually raise income levels, narrowing the gap in development between border residents and those in other parts of the province.

Thanks to its location at the mouth of the Mekong River, An Giang possesses ideal conditions for agricultural development, particularly rice, cereals and fresh-water fish. Rice is one of An Giang’s staples, covering nearly 650,000 hectares with an average yield of 6.5 tonnes per hectare.

An Giang now ranks second countrywide in paddy rice production at around four million tonnes per year. Its rice has made inroads in countries around the globe and each year brings the province several hundred million US dollars in export value. Last year, rice brought the province 203 million USD in export value.

The province also has advantages in growing cereals such as corn, groundnuts, sesame and Indian taro which have delivered even better earnings than rice. Cereals now cover more than 60,000ha in the province and this figure is increasing.

Seafood was established as the province’s spearhead sector with basa and tra fish identified as the province’s strategic products. The province is home to about 2,000ha of aquacultural area of which 1,100ha is dedicated to tra fish farming.

Seafood output comes to about 287,000 tonnes, of which nearly 230,000 tonnes are basa and tra fish, a huge material source for export processing of businesses based in An Giang and other surrounding locations.

Last year, An Giang exported 170,000 tonnes of seafood, generating 440 million USD in the export value.

In terms of livestock breeding, An Giang hosts large cattle and poultry herds, with 100,227 cows, 137,805 pigs, and 3.95 million poultry. Specifically, cattle herds are expanding quickly as more local households look at raising cows as an effective way to promote their household earnings.

The province also has huge tourism potential as it is home to many famous cultural and historical sites, such as the Cam Mountain, Tra Su indigo forest in Tinh Bien district, Oc Eo archeological site in Thoai Son district, and Tuc Dup in Tri Ton district.

The province also attracts visitors through distinct local events such as the Khmer bull fighting festival in Tinh Bien and Tri Ton districts, and the Islamic festival of Ramadan held by the local Cham people.

The province’s tourism sector has been developing robustly in recent years. Travel companies have constantly invested in improving services and promoting its image in key domestic and foreign markets.

Last year, An Giang received nearly 5.5 million visitors, generating more than 315 billion VND (15 million USD) in revenues. In the first nine months of this year, 5.4 million tourists visited to the province’s tourism attractions, bringing over 273 billion VND (13 million USD) in revenues.

This diverse potential has proven An Giang to be a promising land for domestic and foreign investors, according to the VIR.

Credit grows 10.22 percent in 11 months

Credit organisations posted a growth of 10.22 percent in the first 11 months of 2014, according to the latest statistics released by the State Bank of Vietnam (SBV).

The central bank said that November saw the largest expansion of credit. Earlier, by October 24, it grew only 7.85 percent compared to the same period last year.

In some commercial banks, the year-end is a good time for credits to hit targets. The Vietnam Bank for Agriculture and Rural Development (Agribank)’s branch in central Thanh Hoa province said it has fulfilled 95 percent of the set credit growth target of 17.7 percent while its branch in the northern province of Ninh Binh reported its credit growth of 26 percent in the 11-month period, meeting 97 percent of the goal.

With this pace, this year’s credit growth target of 12-14 percent set by the SBV is likely to be reached, experts said.

Earlier, a survey conducted by the central bank’s Monetary Statistics and Forecast Department revealed that up to 90 percent of credit institutions expected their mobilised capital and outstanding credit debt to grow by 4.96 -5.13 percent during the fourth quarter, and by 14.4-14.5 percent for 2014.

Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR