Foreign companies deliver on investment

Large sums of foreign investment have not only been pledged this year, but also, unlike normal, actually been brought in.

According to the Foreign Investment Agency (FIA), FDI has recovered strongly with nearly US$21 billion committed between January-November. Half of the amount has already been disbursed.

This year work began on many large projects immediately after being licensed, but FIA Head Do Nhat Hoang wants things to speed up even further.

The northern province of Hai Duong has licensed projects worth around US$677 million.

"We believe that next year more FDI capital will arrive in our province because many investors have sent in applications," said Mai Duc Chon, Head of the province's industrial parks and processing zones management board.

At the Lai Vu Industrial Park, two major investors, Tinh Loi Garment and Pacific Crystal Textile of Hong Kong, are building plants, and by March next year plan to have 5,000 and 3,000 workers respectively.

Pacific Crystal, with a registered capital of US$425 million, is building a factory that will manufacture 360 million metres of cloth every year.

Tinh Loi Garment has invested US$120 million in a production line to produce 170 million pieces of garments a year. It plans to hire around 17,000 workers eventually.

The Korean and Japanese investors are also exploring business opportunities in the province.

The Samsung High-tech Complex in Thai Nguyen province is going ahead with construction of a US$2 billion mobile phone factory and hopes to begin production in March 2014.

The complex received the license in March and started construction just a week later.

The factory along with Samsung Electronics Vietnam (SEV) in northern Bac Ninh Province will churn out 250 million mobile phones a year, making Vietnam the company's major production hub.

This year SEV is set to achieve US$23.5 billion in exports. The company will spend US$1.9 billion this year of its registered capitalization of US$2.5 billion, mainly on technology.

"No more workshop or factory will be built," said Kim Yong Seok, planning director of the Samsung High-Tech Complex."The most important thing is to invest in technology."

In the central province of Ha Tinh, the US$9.9 billion Formosa Steel project is progressing quickly.

The company plans to begin operation by the middle of 2015 and is set to hire around 1,300 workers for the first stage.

Japanese ODA crucial to transport infrastructure upgrade

The transport sector is the largest recipient of Japan’s official development assistance (ODA) this year, hitting nearly JPY80 billion (roughly US$776 million).

A Ministry of Transport (MoT) report shows by the end of this year 18 Japanese-funded transport projects valued at US$2.34 billion have been completed and put into operation.

Japan is currently helping Vietnam implement 28 other transport projects totalling US$7.42 billion, and working with other donors to channel approximately US$4 billion into three other big transport projects.

MoT has completed a list of 29 urban transport, seaport, highway, aviation and railways projects calling for Japanese ODA worth around US$6 billion in the 2013-2016 period.

Among these projects are the Trung Luong-My Thuan and Nha Trang-Phan Thiet sections of the North-South highway, Long Thanh International Air Terminal, and Hanoi-Noi Bai railways line.

The Ministry of Transport and the Japan International Cooperation Agency (JICA) have announced three major projects to receive Japanese ODA in the 2013 fiscal year (second phase).

They are the HCM City-Dau Giay highway, Danang-Quang Ngai highway, and Haiphong city’s Lach Huyen port. They are considered large, key transport infrastructure projects that are expected to give the inter-regional transport system a facelift.

Given domestic budget limits, Japanese ODA at low interest rates is still valuable to Vietnam in the near future, according to Truong Tan Vien, Deputy Minister of Transport.

Vietnam’s exports to Mexico surge

Vietnam’s exports to Mexico are estimated at US$1.386 billion this year, a year-on-year increase of more than 20%, according to statistics from the Mexican Ministry of Economy.

Mexico’s exports to Vietnam are on the decline. They reached only US$54.7 million in the first nine months of this year and are estimated at US$73 million for the whole year, down 13.2% from last year’s figure of US$84.1 million.

Anyway, bilateral trade exchange may reach US$1.459 billion by the end of this year, up 18% compared to last year’s level of US$1.238 billion.

Vietnam’s exports to Mexico grow annually by 17% and its highest earners are footwear, seafood (basa fish), telephones and components, garment, coffee, computers, and electronics and components.

According to the Trade Office of the Vietnamese Embassy, Vietnam mainly exports consumer products and imports materials for production from Mexico. However, when the trans-Pacific Partnership (TPP) agreement is signed Vietnam will face fierce competition from Mexican products like garment, footwear, pork, beef, eggs and fruits.

Vietnam-China trade fair opens in Guangxi

Many Vietnamese, Chinese and ASEAN enterprises and traders have gathered at the 21st Vietnam - China trade fair at the Pingxiang border gate in Guangxi province (China) which opened on December 11.

They are hopeful to seek trade, investment and tourism cooperation with potential partners.

Major activities include the Vietnam – China products exhibition, the Vietnam – China Film Festival, the 1st timber products exhibition, China-ASEAN cultural forum, the international workshop on Vietnam-China border cultural exchange, the Vietnam-China friendship chess tournament, and the Vietnam-China art performances.

On the occasion, a Vietnam – China trade exchange fair is also open at Huu Nghi border gate with the participation of representatives from the Vietnamese, Lao, and Myanmar consulates general in Nanning.

US-funded agricultural project helps Quang Tri farmers

Over 700 households across four districts in the central province of Quang Tri, one plagued by unexploded ordnance (UXO) left over from the war, have benefited from a sustainable agriculture development project funded by the US’s non-governmental organisation the Roots of Peace (ROP).

Implemented from 2011-2013 in Vinh Linh, Gio Linh, Huong Hoa and Cam Lo districts, the project’s first phase helped farmers – mostly victims of UXOs and Agent Orange/dioxin - and poor families in the locality increase their incomes by assisting them to plant pepper, thus securing sustainable livelihood for local people.

After three years of implementation, the project has established 18 farming clubs in six communes with 453 members. Through the clubs, the project has offered training in pepper cultivation techniques to more than 5,700 people.

It has also provided fertiliser, plant-protection chemicals and seeds to farmers participating in the project.

So far, ROP has provided Quang Tri people with assistance worth VND1.8 billion (nearly US$86,000). It also worked with other non-governmental organisations operating in the locality to clear areas covered by UXOs in order to extend more cultivation areas for local people to farm pepper.

At present, over 65% of pepper trees in project areas has high productivity and output. The area of pepper farming has expanded more and more, increasing to 859.2 ha from 717.5 ha in 2011.

At the December 11 conference to review the implementation of the project’s first phase, representatives from the project management board said the project will be expanded to support more local disadvantaged households.

Vietnam to prioritise industrial aquaculture

Vietnam will develop its aquaculture in an industrial, modern and sustainable way to meet international standards, according to Minister of Agriculture and Rural Development Cao Duc Phat.

Speaking at the Asian – Pacific Aquaculture Conference, themed “Positioning for Profit”, on December 11 in Ho Chi Minh City, Phat noted the Asia – Pacific is the largest aquaculture region in the world. In 2010, the output of its farmed products reached 53.1 million tonnes, accounting for 89% of the global sector’s total output, respectively.

Vietnam farmed 3.27 million tonnes in 2012, representing 55.2% of its total aquatic production, a year-on-year increase of 7.2%. It is the third largest aquaculture country in the region and among the top 10 exporters of aquatic products in the world, he added.

Nine Asian-Pacific nations, namely China, India, Vietnam, Indonesia, Bangladesh, Thailand, Myanmar, the Philippines, and Japan, were listed in the top 10 countries with highest aquaculture output and value in 2010.

The region now consumes approximately 116 million tonnes of aquatic products per year. The figure is predicted to increase by 16 – 20 million tonnes annually by 2020 and 25 million tonnes each year by 2030.

During this period, the region will also promote aquaculture instead of catching to satisfy growing demand.

The conference, which opened on December 10, was co-organised by the Vietnamese ministry and the Asian Pacific Chapter of the World Aquaculture Society. The four-day event is set to include several symposiums.

A trade show is also to be held on the sidelines of the conference, drawing 173 regional businesses to introduce their research outcomes, achievements and aquatic products.

Connecting markets to promote tourism products

A project on strengthening inland tourism in the central province of Quang Nam, funded by the government of Luxembourg, is coming to an end following significant success.

The final workshop of the project was held in the locality on December 10 to evaluate the project’s outcomes and prepare a plan for future activities.

At the event, participants agreed that the project has successfully developed three community-based tourism villages and new approaches linking local handicraft products to appropriate markets.

The three-year project, launched in 2011, also helped reduce poverty by creating sustainable jobs for local people in the project areas.

As a result, the project’s partner, the International Organistion of Labour, proposed further financial support for human resources training, providing training for ethnic people on community-based tourism development and connecting with other localities to promote tourism products.

Export surplus with US hits US$18.7 billion

Despite domestic and global economic difficulties, Vietnam – US trade in 2013 continued to grow steadily.

Two-way-trade turnover in 2013 may reach about US$28.7 billion (up 15.3%), with Vietnam’s exports raking in about US$23.7 billion (up 16.7%), and imports about US$5.0 billion (up 8.7%), according to the US Department of Commerce (DOC).

Most noticeably, US imports of apparel from Vietnam may reach US$8.5 billion, a double-digit increase (10.4%) over the US$7.7 billion in 2012. In addition, Vietnam’s exports of higher-value-added products from “modern manufacturing” FDI are increasing sharply.

Vietnamese exports of textiles and apparel account for about 36% of the country’s total exports to the US.

“Overall apparel import growth used to come from China and Bangladesh, but today Vietnam is the main driver. I don’t think you will see that trend abate in the short term,” said Nate Herman, Vice President of International Trade, American Apparel & Footwear Association.

Vietnam posted the largest increase in textiles and apparel imports to the US in September compared with a year earlier, as it continued to take business away from other Asian countries such as Indonesia, while Bangladesh showed signs of a slowdown in production, a report from the DOC showed.

Vietnam is projected to have the strongest growth, and to reach US$16.4 billion by 2025. The projections are based only on the assumption that present trends will continue, and do not include the expected impact of the Trans-Pacific Partnership (TPP) agreement.

One estimate projects Vietnam’s apparel exports to the US under TPP would be as high as US$22 billion by 2020 and another projects that Vietnam’s apparel and footwear exports will increase by 45.7% by 2025.

Danang, Guangdong foster tourism links

Vietnam’s Danang city and China’s Guangdong province signed a memorandum of understanding on tourism cooperation on December 11, paving the way for tourism promotion in their localities.

The signing of the MoU was witnessed by Vice Chairman of the Danang City People’s Committee Nguyen Xuan Anh, Guangdong Provincial Vice Governor Zhao Yu Fang, and representatives from 67 tour operators of Guangdong and Danang.

At a joint workshop held in Danang the same day, both sides examined the potential and the possibility of increasing tourism cooperation and facilitating their tourism businesses’ operations.

Recent friendship and cooperative relations between Vietnam and China have developed considerably in all fields, bringing financial and practical mutual benefits.

To attract more Chinese visitors to Danang, the city has conducted a number of promotional programs, including attending tourism trade fairs in Shanghai and Guangzhou, considering direct air routes between Danang-Guangzhou, publishing tourism literature in Chinese, inviting Chinese Famtrip to survey existing tourism products and developing tourism products for Chinese visitors.

The government has invested large sums of money in key tourism destinations such as Ba Na-Suoi Mo, Fantasy Park, Ngu Hanh Son (Marble Mountains) and Son Tra Peninsula to further increase numbers of foreign visitors..

The city expects to receive more than 3.1 million visitors in 2013, a year-on-year increase of 17.2%. China ranks first among the top ten countries with the highest number of visitors to the city.

Danang was listed among the top ten attractive destinations in Asia by Smart Travel Asia this year.

Vietnam boosts exports to Russia, EU

The Vietnam Chamber of Commerce and Industry (VCCI) held a seminar in HCM City on December 11 to seek business opportunities in Russia and the European Union (EU).

The EU is Vietnam’s largest export market, with two-way trade reaching US$20.3 billion last year. In the first nine months of this year, their trade value was US$17.8 billion.

Russia is also one of Vietnam’s large trade partner. Two-way trade last year fetched US$3.7 billion, and the figure is expected to rise to more than US$4 billion this year.

Key Vietnamese exports to these markets include garment and textiles, footwear, seafood, coffee and timber.

At the conference,  delegates agreed Vietnam is still lacking in information about these markets. When expanding its market in Russia, Vietnamese enterprises should invest both quality and time, they suggested.

Deputy Director of Europe Market Department under the Ministry of Industry and Trade (MOIT) Nguyen Duc Thuong noted the EU is a culturally diverse market with a broad range of different consumer requisites.  It is a huge challenge for Vietnamese companies to meet the 27 individual consumer tastes of the countries in the market.

He warned businesses are faced with dumping duties when entering this lucrative market due to the bloc’s production protection policy.

Government spotlights outstanding SOE debts in new collections guide

Viet Nam's Government has released new regulations on overdue debt collections at State owned enterprises (SOEs), which underline a message that SOEs must be more responsible in collecting their loans.

Pursuant to Decree No 206/2013/ND-CP that takes effect beginning February 2014, SOEs must identify the responsibilities of individuals or groups in wrongdoings related to overdue debts, and to ask wrongdoers for compensation in line with legal regulations.

If compulsory compensation and debt sales do not fill the loss, SOEs are to use risk provision funds or to calculate enterprises' expenditure allowances.

Regulations call for SOEs that are in the process of transferring ownership must exclude overdue debts in valuing enterprises. Recipients of those SOEs must take responsibility to monitor and collect overdue debts from performing debtors.

Amid rising pressure to revive the economy, the new debt collection guide makes clear Viet Nam's vow to reform SOEs and their deep-seated debt diseases that, according to observers, turn the economy from being an Asian tiger into an unstable economy with serious threats to its financial security.

"The decision is definitely a good move," said Nguyen Hoang Hai, Secretary General of the Viet Nam Association of Financial Investors (VAFI). "The State should no longer be responsible for financial problems of SOEs whose ineffective businesses become horrendously burdensome to the State budget."

As of October 2013, SOEs held 60 per cent of total social capital, or VND900,000 trillion (US$42.70 billion), and also incurred a domestic debt of about VND145 trillion ($6.9 billion).

This group, which occupies a strong position in many areas, enjoys preferable access to capital, land and other resources, and operates under soft budget constraints, contributing a modest 33 per cent to economic growth and 30 per cent of the State budget.

State coffers remain limited, despite the large need for public spending and investment. The government has recently extended the state budget over-expenditure cap from 4.8 per cent of GDP to 5.3 per cent.

Locally made goods dominate HCM City supermarkets

Nearly 90 per cent of products sold at local and foreign-owned supermarkets as well as traditional markets in HCM City are now locally made, according to industry experts.

Nearly four years since the launch of the "Vietnamese people use Vietnamese products" programme, locally made goods have dominated distribution channels.

A representative from Metro Cash and Carry told Viet Nam News that the locally made goods are of good quality and sell for reasonable prices.

At Vinatexmart, for example, all products are made in Viet Nam.

Other supermarkets such as Co-op Mart and Big C said that 80-90 per cent of their products were locally made.

Apart from modern distribution systems, traditional markets have also given priority to locally made products. Such goods are sold at markets in the inner city or suburbs as well as areas near industrial zones.

For the Tet (Lunar New Year) holiday, domestic companies are preparing products to meet consumer demand,

Le Ngoc Dao, deputy director of the city's Department of Industry and Trade, was quoted as saying in Hai Quan (Customs) newspaper that the preparation for Tet 2014 had been completed.

Most of the products were Vietnamese-made, and supermarkets and big traditional markets in the city this year had given priority to these products, she said.

A representative from Big C said products made in Viet Nam were more competitive in terms of prices and also satisfied consumers' demand for quality and and design.

To further boost competitiveness, traders said companies should invest more to improve quality and provide more information about the quality of their products.

Bui Thi Hanh Thu, deputy director of Sai Gon Co-op, told the Customs newspaper that most Vietnamese-made products were food and foodstuff. Other products such as electronics took up a much smaller share of locally made goods.

Domestic manufacturers, she said, need help from ministries and sectors to catch up with foreign producers.

HCM City targets that by 2015 about 80 per cent of local people will use Vietnamese-made goods, and that more than 900 wards will have stalls selling price-stabilised products.

Providers recall unused SIMs

SIM cards issued before August 1 that have not been activated will be recalled by the end of this month in order to ease a numbers crunch, leading mobile phone service providers have said.

They will also recall SIM cards that have been activated but have not generated any outgoing calls and messages since August 1.

According to the two leading mobile phone service providers in the country, Vinaphone and MobiFone, SIM cards that were issued and allocated to dealers before August 1 will expire in December 30.

"As many as 100,000 SIM cards of our network that have been allocated to dealers are still unsold" a Vinaphone representative said.

He said the recall announcement has already been sent to its dealers nationwide.

Meanwhile, MobiFone said its network has 200,000 SIM cards that have been issued but not activated.

According to the Viet Nam Post and Telecommunications Group (VNPT), which owns both Vinaphone and MobiFone, of its 75.5 million mobile phone subscribers nationwide, only 46 million generate outgoing calls and messages.

Furthermore, as many as 5.5 million subscribers have been locked by service providers because of unpaid telecom bills.

All these SIM cards will also be recalled later.

New mobile subscriptions in Viet Nam have skyrocketed in recent years, reaching 19 million in 2006, 25 million in 2007, 74 million in 2008, 98 million in 2009 and 134 million by the end of 2013.

The country currently has five mobile network operators: Vinaphone, MobiFone, Viettel, Vietnamobile, and Gtel.

Experts target growth in aquaculture sector

Higher demand for seafood will require the aquaculture industry in the Asia-Pacific region to adopt sustainable practices in governance, harvesting, marketing, education and value chain, speakers noted yesterday at a conference held in HCM City.

Speaking at the Asian-Pacific Aquaculture Conference and Trade Show, Cao Duc Phat, Minister of Agriculture and Rural Development, said that aquaculture in the Asia-Pacific region had an average annual growth rate of 6.5 per cent, much higher than elsewhere in the world.

In 2010, aquaculture production in the region reached 53.1 million tonnes, contributing 89 per cent of global aquaculture production and 80 per cent of total global aquaculture value.

"The estimated average consumption rate of fish in the region is 29 kilos per capita per year, equivalent to 116 million tonnes per year," he said.

As demand for seafood continues to surpass supplies of wild-caught fish and seafood, aquaculture will be the only serious solution to meet the increasing demand, Phat said.

"Sustainable aquaculture development will become more of a priority in the regional countries," he said.

However, numerous challenges exist, including lack of health management and outside pressure from "informed consumers and certification issues", according to Amrit N. Bart, director at the Asian Institute of Technology.

"Asian aquaculture is increasing and is profitable, but we produce more dead fish and shrimp than live product, and we are not getting the optimal margins from our value chain, nor are we working to do so," he said.

"We need to look at other areas and approaches to get our production and profitability to optimal levels," he added.

The event, which discussed how the industry could position itself for higher profits and will end on Friday, provides a platform for the international aquaculture community to discuss opportunities and challenges faced by the industry.

Pham Anh Tuan, deputy director of the General Department of Fisheries, said Viet Nam's aquaculture industry had developed strongly in the past in terms of both production and export.

However, the industry had encountered challenges such as high disease prevalence, high production costs, and strict requirements set by import markets. Climate change, weak value-chain linkages and financial problems are other obstacles.

"Disease is one of the biggest challenges for sustainable development of our aquaculture industry," he said, adding that disease outbreaks had affected shrimp, pangasius and tilapia, causing huge losses for farmers.

To overcome challenges, he said better control of disease was needed as well as improved feeding management.

Promoting linkages between stakeholders in the industry is also necessary to reduce production costs and improve the value chain.

The industry plans to promote the use of GAP (Good Agricultural Practices) standards to satisfy strict requirements from import markets.

It also plans to conduct more research on breeding that would be adaptive to climate change, including creating saline-adapted and disease-resistant strains.

David Hughes, emeritus professor of food marketing at Imperial College London, said future demand for fish and seafood would continue to increase in both emerging and developed countries.

"Shoppers in developed countries respond well to better range, quality and convenience, less ‘fishy fish', and customer service in-store," Hughes said.

Therefore, exporters should focus more on exporting highly processed products to developed markets, he said.

Viet Nam's seafood exports reached US$6.1 billion last year and is expected to top $6.7 billion this year, Tuan said.

Viet Nam's total aquaculture production last year was 3.27 million tonnes, accounting for 55.2 per cent of the total fisheries production.

This was an increase of 7.2 per cent over 2011. Viet Nam is ranked third in aquaculture production volume in the Asia-Pacific region, and is set to be one of the top 10 seafood-exporting countries.

New helicopter debuts in VN

Executives from Franco-German-Spanish Eurocopter Group are in Viet Nam to pitch their latest twin-engine helicopter, the EC175.

They provided a demonstration flight yesterday, carrying journalists and officials from the Southern Viet Nam Helicopter Company in the sky of coastal Vung Tau City.

The machine is designed primarily for the offshore oil and gas industry, they said.

Jochen Schmid, an Eurocopter executive, said Viet Nam is among his firm's most important customers.

Besides the Southern Viet Nam Helicopter Company, the Northern Viet Nam Helicopter Company and some other small companies have also bought their helicopters, he said.

Accordingly, the Southern Viet Nam Helicopter Company, helicopters for the oil and gas industries usually cost around US$30 million, but Eurocopter is offering the EC175 for $20 million.

Eurocopter helicopters have for long served the country's oil and gas industry.

The Southern Company, which also uses them for tourism and transportation, has 10 of them plus seven Russian-made choppers.

The EC175 carries up to 18 people. With a reduced complement of seven passengers, it can fly between Truong Sa Islands and the mainland.

With its ability to operate well in temperatures of up to 45 degrees Celsius, the craft is suitable for Asian countries.

The medium-sized machine can however be used for a full range of applications, including oil and gas airlift duties, search and rescue, emergency medical services, public services, and VIP and executive transport.

Eurocopter is the world's number one helicopter manufacturer with a turnover of 5.4 billion euro ($7.4 billion) last year.

The executives will leave for Thailand on Friday to continue their Asian tour, which also took them to Malaysia

Ha Noi to tender waste treatment

The capital city is calling for investment from both domestic and foreign investors in waste treatment, despite struggling to sell the idea due to a number of obstacles.

According to the city's People's Committee, a tender for the waste treatment project has not yet been issued. The difficulties mainly relate to the high cost, need for sophisticated technology, low profits and long wait to earn back capital, it said.

Current projects are all proposed by investors and submitted to the city for approval.

If the city's plan on the treatment of solid waste by 2020 is approved by the Prime Minister, the implementation of the projects will be deemed to be compliant with the rules of law.

Some said the delay in deciding technological standards in the field and inconsistent policies have contributed to halting the work.

However, municipal authorities argued that it is impossible to figure out a common standard and price for all facilities of waste treatment due to technology differentials in factories.

The work has been flagged for completion in 2014 in an effort to save resources and prevent wastefulness, the city authorities explained.

Delegates gather at regional conference

The Greater Mekong Subregion (GMS) has concluded its 19th ministerial meeting in Vientiane, Laos with the endorsement of the Regional Investment Framework, which includes projects worth some US$50-60 billion.

The two day event gathered representatives of Viet Nam, Laos, Cambodia, Myanmar, Thailand, and China. Deputy Minister of Investment and Planning Nguyen The Phong, who led the Vietnamese delegation, said the endorsement of the RIF is a significant milestone for regional cooperation in the 2012-2020 period. The deputy minister emphasized that Viet Nam is ready to co-operate with partners in the Mekong sub-region, including countries and private sector, working toward the goal and vision of GMS.

The investment includes more than 200 projects in various fields, worth up to $60 billion, of which the Asian Development Bank would contribute $2-3 billion.

The RIF is the strategic co-operation framework for the development of the greater Mekong sub-region.

Retail sector eyes new development chances

A modest number of modern retail channels has made Vietnam a promising land for the development of the sector and country’s economy in general.

So far, Vietnam ’s retail system has been expanded with improved service quality and variety. However, modern distribution channels have been limited compared to other regional countries.

According to the US Business Consultancy Services RNCOS, Vietnam ’s modern retail channels make up only nearly 30 percent of the market in 2013, while the figure is 48 percent in the Philippines , 55 percent in Indonesia , 66 percent in Malaysia , 76 percent in Australia , 99 percent in Hong Kong ( China ) and 100 percent in Singapore .

Statistics have shown that Vietnam ’s retail sector earned 2,286 trillion VND (108.8 billion USD) in the first 11 months of this year, up 12.5 percent year on year, representing a growth of 5.54 percent in real terms.

Total turnover of the sector is expected to hit 2,617 trillion VND (124.6 billion USD) for the whole year, a rise of 12.59 percent over last year’s figure.

The Ministry of Industry and Trade has estimated that by 2020, the country will have between 1,200 to 1,300 supermarkets, 550 more than the current number.

Meanwhile, about 180 trade centres and 157 shopping complexes will be opened, up 200.

During the recent 2013 Vietnam Retail Forum, retailers pointed out that combination between modern retail channels and e-commerce is now a rising trend in the world.

According to Dinh Thi My Loan, Chairwoman of the Association of Vietnam Retailers, Vietnam is entering the digital era with high technology. This is a good chance for retailers to attract buyers from the whole society.

Meanwhile, Nguyen Thanh Hung, Vice Chairman of the E-commerce Association, said that Vietnam’s e-commerce has developed stably with about 700 million USD in annual sales, based on estimations that a customer in Vietnam purchases online about 30 USD worth of goods every year.

At the same time, Master Card representatives predicted that e-commerce sales may reach 7-8 billion USD by 2017.

HCM City to need 265,000 workers in 2014

Ho Chi Minh City-based businesses will recruit 265,000 workers next year, according to the municipal Centre for Manpower Need and Labour Market Forecast.

The recruitment demand will focus on the spheres of trade, services, health care, tourism, insurance, mechanical engineering, construction, information technology, electronics and electricity.

The labour market is expected to see stable growth thanks to the recovery of the city’s economy and real estate market next year.

In 2013, unemployment has posed problems, while the quality and quantity of labourers has fallen short of the demand of the city’s key industrial sectors.

Only half of students can find suitable jobs after leaving school.

Deputy Director of the centre Tran Anh Tuan stressed the need to expand activities to introduce information about jobs at schools and training institutions, and increase the training of soft skills, including effective communication, flexibility, problem-solving, and creative thinking, for students.

It is also necessary for the city to build preferential policies on training and attract human resources to its main sectors and social sciences.-

Cell phone sector gains full steam ahead

Vietnam’s cell phone and spare part sector has recorded phenomenal growth over the past five years, with analysts expecting it to go from strength to strength in view of the 20.2 billion USD it took home during the January-November period.

The figure represented a year-on-year rise of 78.4 percent, placing the sector among the top earners of hard currency from 30 countries and territories across the globe.

Its biggest market is the United Arab Emirates (UAE), which bought 2.96 billion USD worth of handsets, up 155 percent on an annual basis and making up nearly 16.5 percent of the sector’s total turnover.

Exports to Germany, Austria and the UK also soared to 1.36 billion USD, 1.29 billion USD and 1.23 billion USD respectively.

In 2010, the sector ranked eighth among the biggest currency generators. One year later, its shipments abroad climbed 198.4 percent.

Moving into 2012, it beat the crude oil sector to become the country’s second largest source of earnings with more than 12.7 billion USD, nearly double the sum in the preceding year.

Gathering such momentum, the sector has fetched the biggest export revenues since June this year, dethroning the garment sector.

Its respective trade surplus in 2010, 2011 and 2012 was 812 million USD, 3.67 billion USD and 7.67 billion USD.

Foreign-invested firms are behind this growth, accounting for 98.2 percent of mobile phone makers in Vietnam. The largest are giants Samsung, Nokia and LG.

Ho Chi Minh City saves 840 mln kWh of electricity

Thanks to energy saving efforts, Ho Chi Minh City has successful spared 480 million kWh of electricity so far this year, up 10 percent over the same period last year.

The city has also reduced the power loss rate to 5.4 percent, down 0.16 percent year on year.

The results have proved the efficiency of many power saving programmes in the city, including a family electricity saving campaign in 2013-2015 and a safe and economical power use project with the participation of 24,000 students.

In addition, a programme to launch 25 model power saving streets has also helped save more than 334,500 kWh of electricity.

According to the municipal People’s Committee, in 2014 the city will continue implementing the modernisation of its electricity transmission network and the building of a smart power network to ensure safe and effective power use.

In addition, the city will also strive to further reduce the power loss rate to 5.3 percent, while strengthening research for renewable energy sources to ensure sustainable growth.

Ho Chi Minh City is among localities that consume a high amount of power, accounting for 15 percent of the country’s total power use. In 2013, the city used 18.8 billion kWh of power, a rise of 6.1 percent over last year’s amount.-

Da Nang chooses 2014 as Businesses’ Year

The central city of Da Nang has announced that 2014 will be designated as the Year for Businesses with the focus on taking drastic measures to help businesses overcome difficulties.

This is part of the city’s efforts to reach a GDP growth rate of 9-9.5 percent next year.

Top priority will be given to improving the business and investment environment, establishing a fund to support businesses, and developing tourism and services to attract more foreign visitors to the city.

It will organise regular meetings with leaders of enterprises and banks to promptly deal with difficulties for them.

In 2013, the city’s socio-economic situation remains stable. Its GDP growth is estimated at 8.1 percent.

So far this year, Da Nang has earned more than 1 billion USD from exporting products, the highest ever recorded in the city. The total volume of cargo transported through the Da Nang Port has reached nearly 5 million tonnes. The city has received more than 3 million tourists from the beginning of this year.

Central Highlands redefine stock breeding

Breeding is now defined as a commodity economic sector in Central Highlands provinces with increasing value of production, annually averaged 5.8 percent, helping improve the incomes of the locals.

Among the regional provinces, Dak Lak has the biggest herds with nearly 709,000 pigs and 199,000 heads of cattle.

The results have been attributed to efforts to guide the locals in developing systematic breeding models in place of the unprompted ones that came before.

Additionally, the provinces have provided breeding stocks, mainly cows to poor families and given them access to loans and land hire for breeding development aiming at sustainable poverty reduction.

To date, the localities count 1,000 farms breeding buffalos, cows and pigs. The breeding structure has shifted efficiently from low-yield and quality strains to high-yield and quality ones.

The local breeders have also been planting high-quality grass to create good food for their stocks.

Timely and uniformed solutions for disease prevention and control have also been provided.-

SCIC to divest stakes in SOEs via auctions on bourse

The State Capital Investment Corporation (SCIC) will sell stakes in State-owned enterprises (SOEs) it is holding via auctions on the northern bourse, says The Saigon Times Daily, quoting an agreement SCIC signed with Hanoi Stock Exchangeon December 6.

Under the memorandum of understanding, SCIC and the northern bourse will join forces in restructuring those SOEs where State stakes are held by SCIC. Such enterprises will be asked to get listed on bourse to improve their performance transparency.

The list of those SOEs whose State stakes are to be sold is not unveiled, however.

Lai Van Dao, general director of SCIC, said that the corporation will accelerate the restructuring process of SOEs in line with new regulations issued by the Government that allow for more flexible operations of SCIC.

“SCIC will bolster the sale of State stakes in those enterprises where State ownership is deemed not necessary so as to concentrate (capital) resources on key industries of the economy,” Dao said.

Deputy Prime Minister Hoang Trung Hai last week noted that the program to let SOEs go public had almost stalled after the global crisis, with the number of SOEs selling shares or getting disbanded totaling only 32 in 2012 and 100 this year.

Meanwhile, the Government aims for reducing the number of State concerns from the current 1,200 to around 300 by 2020, with more enterprises in the sectors of oil and gas, electricity and mining to go.

The Government will consider dissolving money-losing State-owned enterprises, while efficient enterprises will also be put on offer via auctions, Hai said.

Tran Van Dung, board chairman and CEO of Hanoi Stock Exchange, noted that the cooperation between the northern bourse and SCIC in the past few years has borne fruit, with stakes in many SOEs auctioned.

“In the past three years, SCIC has divested stakes in ten SOEs via auctions on the northern bourse with the total value of VND160 billion, which is twice the nominal value and some VND4 billion higher than the starting prices,” Dung said.

Currently, there are 33 SOEs with SCIC holdings listed on the northern bourse with combined chartered capital of 8.29 trillion VND compared to their current market value of 14 trillion VND.-

Can Tho’s goods exports up 20.9 percent

The Mekong Delta city of Can Tho’s goods exports and foreign exchange services are expected to reach 1.5 billion USD by the end of 2013, up 20.9 percent over last year.

Export value is estimated at 1.42 billion USD, a year-on-year increase of 18.4 percent, while exchange services are up to 92 percent compared to the previous year to hit 80 million USD.

The city’s main exports have remained aquatic products, rice and garments, accounting for 35.1 percent, 31.4 percent and 7.8 percent respectively.

To achieve the results, the city’s businesses have flexibly changed strategies towards improving quality of products and increasing competitiveness in the traditional markets whilst seeking new buying destinations.

Can Tho has trade relationships with over 80 countries and territories around the world. Besides the traditional markets of Japan, the US and the EU, the city has also expanded its export markets to the Middle East, North Africa and Eastern Europe .

It sets a target of earning 1.65 billion USD from goods exports and foreign exchange services in 2014, up 10 percent over this year.-

Vietnam sees fruit and veg exports surge to China

Vietnam earned 262 million USD from exporting fruits and vegetables to China in the first 11 months of this year, an annual increase of 36.4 percent.

The number accounted for 27.8 percent of the country’s total value of exports for the commodity, the Vietnam Fruits and Vegetables Association has announced.

The association said that export of processed fruit products contributed significantly to the growth of export turnover of the produce to China in the period.

According to economic experts, there is a great potential for Vietnam to promote export of its fruits and vegetables to China because this is essential commodities and China has not yet met the demands of consumers in the country.

Vietnam’s dried fruits are a favourite product in China now. Many Vietnamese businesses have reduced export of fresh fruits, while increasing dried fruit export to the market.

In the first half of this year, Vietnam’s export value of fruits and vegetables rose 33.5 percent year-on-year, reaching 492 million USD.

Vietnam to prioritise industrial aquaculture

Vietnam will develop its aquaculture in an industrial, modern and sustainable way to meet international standards, Minister of Agriculture and Rural Development Cao Duc Phat has said.

Speaking at the Asian – Pacific Aquaculture Conference, themed “Positioning for Profit”, on December 11 in Ho Chi Minh City, he said the Asia – Pacific is the largest aquaculture region in the world. In 2010, the output of its farmed products reached 53.1 million tonnes, accounting for 89 percent of the global sector’s total output, respectively.

Vietnam farmed 3.27 million tonnes in 2012, representing 55.2 percent of its total aquatic production, a year-on-year increase of 7.2 percent. It is the third largest aquaculture country in the region and among the top 10 exporters of aquatic products in the world, he added.

Nine Asian-Pacific nations, namely China, India, Vietnam, Indonesia, Bangladesh, Thailand, Myanmar, the Philippines, and Japan, were listed in the top 10 countries with highest aquaculture output and value in 2010.

The region now consumes approximately 116 million tonnes of aquatic products per year. The figure is predicted to increase by 16 – 20 million tonnes annually by 2020 and 25 million tonnes each year by 2030.

During this period, the region will also promote aquaculture instead of catching to satisfy growing demand.

The conference, which opened on December 10, has been co-organised by the Vietnamese ministry and the Asian Pacific Chapter of the World Aquaculture Society. The 4-day event is set to include several symposiums.

A trade show is also to be held on the sideline of the conference, drawing 173 regional businesses to introduce their research outcomes, achievements and aquatic products.

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