FTA with EU would boost exports

The Vietnam-EU Free Trade Agreement expected to be signed by October will bring "win-win" opportunities of success for both sides' business communities, delegates told a forum organised in Ho Chi Minh City on May 13.

The EU continued to be the most important market for many key exports of Vietnam, said Jean-Jacques Bouflet, Minister-Counsellor and head of the Trade and Economic section of the EU delegation to Vietnam.

Vietnamese exports to the EU currently enjoy the EU's Generalized System of Preferences (GSP), which provides developing countries preferential access to the EU market through reduced tariffs. However, preferential tariffs under GSP are unstable since GSP is subject to revision every three years, according to Bouflet.

"It is high time for Vietnam to find a more predictable and stable legal framework for bilateral commercial trade, as the country has achieved a certain level of strong competitiveness in overseas market," he added.

"An FTA is definitely an answer for this as it is a preferential access arrangement for Vietnamese products contractually guaranteed by treaty," he said.

It would enable Vietnamese firms to enjoy lower export duties than that offered by GSP when exporting to the EU because, under the FTA, tariffs on most Vietnamese products exported to the EU would gradually drop to zero, he said.

The bilateral FTA would also have a wider impact, including an increase in the flow of quality investment from Europe, acceleration of shared expertise and transfer of advanced green technology, and the creation of more jobs and better incomes for the Vietnamese people.

The two sides had completed seven rounds of negotiation for the bilateral FTA, and the next round would take place next month, Bouflet said.

He added that the EU and Vietnamese negotiators had targeted the conclusion of the FTA by October.

However, to be able to enjoy the many benefits of the FTA, local companies needed to be aware of technical barriers to trade imposed by the EU and increase investment to improve product quality, delegates said.

The EU had many trade regulations to protect human health and safety, animal and plant life and health and the environment, Frank Juettner, general director of TUV Rheinland Vietnam, said.

They include REACH, the European Community Regulation on chemicals and their safe use, FLEGT or Forest Law Enforcement, Governance and Trade aiming to reduce illegal logging, and IUU, the regulation against illegal fishing.

Vietnamese firms should spend time studying the EU requirements and adjust their products and production processes to comply with such requirements, he said, adding that they should not sacrifice innovation for efficiency.

In addition, companies were urged to conduct research to understand European consumers' tastes and demands.

Le Ky Anh, an expert with the EU delegation to Vietnam, said the Export Helpdesk website for businesses on how to export to the EU would provide essential information for Vietnamese exporters, including information on EU tariffs, import requirements and preferential arrangements.

At the forum, Dang Hoang Hai, head of the Ministry of Industry and Trade's European Market Department, advised Vietnamese firms to work directly with and export their products to EU supermarkets.

Once their products can enter EU supermarket chains, they can enter other distribution channels there, he said.

Vo Tan Thanh, director of the Vietnam Chamber of Commerce and Industry in HCM City, said the EU had surpassed the US in 2012 to become Vietnam's largest export market and the second largest trading partner of Vietnam.

Last year, Vietnam-EU bilateral trade reached US$33.6 billion, a year-on-year increase of 16 percent, of which Vietnam's exports accounted for US$24.4 billion.

The EU is one of the biggest investors in Vietnam, with 1,401 investment projects with total registered capital of US$18.02 billion in various sectors, including industry, construction and services, he said.

Vietnam mainly exports apparel, footwear, coffee, furniture and seafood to the EU, while the EU exports machinery, medicine, aircraft, equipment and vehicles.

The "Vietnam-EU FTA: Opportunities and Challenges for the Business Community" forum was co-organised by the Vietnam Chamber of Commerce and Industry in HCM City and the delegation of the European Commission to Vietnam.

Debuting in 2007, the annual event is held to promote mutual understanding and improve the two countries' trade and investment activities.

Czech minister aims to boost trade with Vietnam

Czech Republic’s Minister of Industry and Trade Jan Mladek promised to realise signed agreements with Vietnam while meeting with Deputy Prime Minister Hoang Trung Hai in Hanoi on May 13.

Mladek told Hai that his visiting delegation includes 25 business representatives who wish to explore the market and seek Vietnamese partners.

To carry bilateral ties forward, he suggested facilitating visits by senior officials and resuming cooperation on the education and tourism fronts.

Deputy PM Hai said he is satisfied that the Vietnam – Czech Intergovernmental Committee has agreed to foster bilateral coordination in mining, mechanical engineering and clean energy and water at its recent meeting in the Vietnamese capital.

He expressed hope that the committee will make it easier to boost two-way trade.

The host thanked the Czech Government for its provision of official development assistance for Vietnam and its recognition of the Vietnamese community in the Czech Republic as an official minority group.

Vietnam, Mexico strengthen cooperation

Vietnamese ambassador to Mexico Le Thanh Tung and Tabasco Governor Arturo Nunez Jimenez expressed their desire to seek opportunities to expand bilateral cooperation among localities of both nations, especially in advantageous areas.

At a working session in Villahermosa, Tabasco, Mexico on May 12, Governor Jimenez highlighted the ambassador’s visit to Tabasco, expressing his hope to establish heightened cooperative relations for mutual benefits and singling out similarities in climate which he says lays a solid foundation to promote cooperation, especially in the field of agriculture.

The Governor said that Vietnam’s localities have had experiences in rice production and aquaculture which Tabasco needs to restore its traditional agricultural sector. He also briefed on some projects on rice production, banana cultivation and called for foreign investment and technical assistance from Vietnam.

For his part, Ambassador Tung reviewed Vietnam’s economic achievements, stressing that two-way trade between Vietnam and Mexico surpassed US$1.6 billion over the past year. This provides a solid basis from which to build future cooperative relations among localities of Vietnam and Tobasco, he said.

The ambassador invited the Governor to visit Vietnam to strengthen bilateral relations and seek proper areas for cooperation for mutual benefits.

After the reception, in response to questions by the local press, Ambassador Tung mentioned China’s deployment of oil rig Ocean-981 in Vietnam’s economic exclusive zone and continental shelf, which has seriously violated Vietnam’s sovereign.

The ambassador described the incident as a serious violation of international law and the 1982 United Nations Convention on the Law of the Sea (1982 UNCLOS) and the Declaration on the Conduct of Parties (DOC) in the East Sea and says he considers it a dangerous precedent which threatens the peace, stability, security and safety of navigation in the East Sea.

Four int’l awards conferred on VPBank

Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) has been accorded four top international accolades, celebrating its innovativeness in facing the challenges of the industry and development of high-quality products.

The four top awards received are: Best Trade Bank, Best International Payment, Best Banking Product Vietnam and Best Trade Finance Bank Vietnam.

The UK International Finance Magazine selected VPBank as the Best Trade Bank, the first time a Vietnamese bank has been awarded this prize.

VPBank was chosen by the Bank of New York Mellon to receive the Best International Payment award, honouring banks which achieve high quality in processing international transactions.

The UK Global Banking & Finance Review (GBAF) awarded the Best Banking Product Vietnam (with VP Lady Card) and Best Trade Finance Bank in Vietnam to VPBank.

The selection of VPBank for these awards, once again confirms the quality of products and service and the competitiveness of VPBank, said Nguyen Duc Vinh, CEO of VPBank.

The bank is committed to strive to increase the quality of services to a level exceeding the highest of international standards, Vinh added.

Vietnam gold rises despite global fall

The world gold price fell to its lowest level in a week on May 12, while the local gold price rose steadily in the Vietnamese market.

The world gold price fell to US$1,289.2 per ounce or US$1,553.4 per tael on the gold trading floor Kitco.com.

Meanwhile, the gold price in Vietnam rose to VND35.63 million, or US$1,696, per tael, as listed by the state-owned Saigon Jewellery Company (SJC) on May 12.

Thus, each tael of gold in Vietnam was US$143 higher than in the world market.

The euro hovered near a month's low over fears of policy action by the European Central Bank, shrugging off demands for safe havens due to the escalating violence in Ukraine.

On the same day, Vietcombank and the other commercial banks maintained an exchange rate of VND21,120 per US dollar, the same as last week. This was with the exception of Sacombank which raised its dollar selling price to VND21,130.

The State Bank of Vietnam kept the US dollar's exchange rate at VND21,036 on May 12, which has been the rate for the past 10 months.

Vietnam, Czech Republic seek cooperative opportunities

The Vietnam-Czech Republic Business Forum provided an excellent occasion for the Vietnamese and Czech business communities to establish strategic relationships that create trust.

Speaking at the forum in Hanoi on May 13, Deputy Minister of Industry and Trade, Ho Thi Kim Thoa also expressed her optimism that bilateral trade ties between the two nations will continue to further evolve, elevating bilateral trade and investment to much higher levels in the future.

She underscored that Vietnam critically needs investment and expertise from the Czech Republic in such fields as infrastructure, energy, farm produce processing and market development.

Additionally, she declared that the Czech Republic is a gateway for Vietnamese goods to penetrate the European and world markets.

Jan Mladek, Czech Minister of Industry and Trade in turn said that Vietnam has a dynamic economy with huge potential for trade and investment.

Czech businesses are very keen on promoting cooperation and exploring potential in many fields, most notably in infrastructure, industry, health and tourism he said, emphaziing  that the Czech government is devising concrete mechanisms to bolster trade promotion and investment activities.

According to the Vietnam Chamber of Commerce and Industry (VCCI), two-way trade volume between the two nations stands at just US$240 million each year, which has not matched the potential of both nations.

Vietnamese major exports to the Czech Republic are garments and textiles, machines, equipment and chemicals while it’s key imports from the market are steel and iron, machines, components and equipment.  

HCM City hosts int’l business forum

International business leaders from around the globe are headed to Ho Chi Minh City for a forum discussing business rejuvenation – a miracle for business success – on May 16.

The forum, which is attracting world-class speakers from the US, Switzerland, Japan, Israel, Singapore and Thailand, is the result of a joint effort by the Business Association of High-Quality Vietnamese Goods and the Ministry of Science and Technology.

Leading Vietnamese household brand names, such as Vinamilk, Thien Long, Rang Dong and Bui Van Ngo are also participating in the event.

The event is part of activities in response to the National Science-Technology Day (May 18) which is being observed for the first time in Vietnam.

WB supports rice market integration for Mekong Delta

The World Bank (WB) has agreed to provide preferential loans totaling US$150 million to bolster rice production in the Mekong River Delta (MRD).

The announcement came at a May 12 conference in HCM City discussing the development of large-scale rice fields and linkages between agricultural production and consumption in the MRD.

Under the programme, the WB will provide Vietnamese farmers and rice related agricultural businesses medium and long-term capital loans to fund the construction of warehouses and silos.

The WB will make funds available for the project in early 2015.

The Vietnam Food Association (VFA) reports that to qualify for the preferential loans, Vietnamese businesses need to submit a completed loan application package, including a well-prepared detailed business plan.

The Ministry of Agriculture and Rural Development (MARD) encourages linkages between agricultural production and sales, and says special allowances will be made for businesses applying for loans under the programme.

McDonald’s to publicise nutrition facts in Vietnam

McDonald’s has started a plan to announce nutrition facts for the food and drinks it serves in Vietnam, where the world’s largest restaurant chain launched the first restaurant three months ago.

The Ho Chi Minh City-based Good Day Hospitality Company, also called McDonald’s Vietnam under a franchise agreement from McDonald’s, is working with Vietnamese authorities on the plan and expects to announce the facts within one year from this month, said McDonald’s Vietnam communications manager Le Ha My Tram.

She said this while Good Day Hospitality general manager Nguyen Huy Thinh was announcing the second McDonald’s Vietnam restaurant, located in Ho Chi Minh City’s heart, would open on May 16. Publicising the nutrition facts aims to help customers know about nutrition they are taking in.

The second restaurant, open 24/7 like the first one also in district 1, occupies three floors covering a total area of 660m2 and has a seating capacity of 260 seats – 180 indoor and 80 outdoor – in a scenic terrace across from September 23 Park next to Ben Thanh Market.

Instead of a drive-thru service available at the first restaurant, the second outlet has a “To Go” counter that allows customers to order and pick-up their food, beverages and desserts quickly without having to step inside the restaurant. The counter enables customers order their meals on the go with their motorbikes. The Ben Thanh store will serve McCafé coffee after the grand opening period of a month. McCafé is currently available at the first restaurant.

Firms eye agriculture as lucrative new field

Due to Vietnam’s obvious advantages in agriculture, many major domestic firms are targeting the agricultural sector.

Hoang Anh Gia Lai Group (HAGL), once a major player in the real estate sector, has felt justified in abandoning property projects to shift to agricultural sector.

“We’re completely convinced that the shift from real estate to agriculture was completely the right move for HAGL,” said HAGL chairman Doan Nguyen Duc.

HAGL’s recent shareholder meeting reported that the firm’s post-tax profit of VND972 billion ($46.3 million) in 2013, almost triple that of 2012, was thanks to a 58.7 per cent contribution from its agriculture sector.

Aware of the lucrative nature of their shift in priorities, the group has also begun a new programme to raise 100,000 cattle. Duc estimated cattle-rearing would provide VND4 trillion ($190.5 million) in the group’s annual revenues.

In addition to HAGL, Tan Tao – an industrial group that has virtually no experience in agriculture – surprised business observers when it announced the launch of ITA Rice, a fragrant rice export and research company, to cultivate rice paddies on 60.3 hectares in the Mekong Delta province of Long An. The company plans to expand its cultivation to 5,000ha in the coming years.

Cam Nguyen Steel Co. has also invested in agriculture by building a rice paddy kiln and grinder with the capacity of 580 tonnes per day and a storehouse of 100,000 tonnes in the Mekong Delta province of Dong Thap.

The company’s director Huynh Cam admitted that during recent years, Cam Nguyen has faced difficulties in steel trading so it decided to invest in agriculture, and it saw promising returns.

Dang Kim Son, general director of Institute of Policy and Strategy for Agriculture and Rural Development under the Ministry of Agriculture and Rural Development, said Vietnam had obvious advantages in agriculture.

“Businesses acknowledge that agriculture is a very promising sector, the prices of farming products have risen and will continue to peak for many years, so agriculture in Vietnam offers big opportunities,” he said.

Major transnational groups are also increasing their participation in Vietnam’s agricultural sector. Metro Cash & Carry is increasing investment in seafood, while Nestle and Bayer are targeting coffee, and consumer giant Unilever is dipping their toes in the tea sector.

Shrimp exports to US up two-fold over last year

Vietnamese shrimp exports to the US doubled in the first three months of 2014 over the same period last year, tallying in impressively at US$293.4 million.

The spike comes on the back of a sharp decline in Thailand‘s shrimp production, devastated by heavy losses from Early Mortality Syndrome (EMS) and a highly beneficial reduction of import tariffs into the US market.

Official statistics show that in the first two months of the year alone, Vietnamese shrimp exports to the US increased by 139 % in value and 74 % in volume over last year’s same period.

Eight banks to pilot credit link

The State Bank of Vietnam, on May 12, issued Document 3128/NHNN-TD appointing eight commercial banks to pilot a credit product linking four entities involved in the realty sector.

Among the eight commercial banks are BIDV, Vietinbank, Vietcombank and Agribank. The other banks are Mekong Housing Bank, Vietnam Construction Bank, Lien Viet Post Bank and Sai Gon-Hanoi Bank.

The pilot credit link, which involves investors, contractors, building material suppliers and banks, aims to tackle difficulties hampering the local property market.

It will help reduce building material inventories while creating favourable conditions for enterprises with overdue debts to renew their loans. Renewed loans would have capital to continue construction of unfinished projects to ensure construction quality and the scheduled progress, according to the central bank.

The credit link will also help banks to control the money flow and ensure that the cash will not be diverted for wrongful purposes.

The central bank said the credit quality would be enhanced and bad debts will be reduced as a result.

The document allows problems arising during the pilot implementation to be reported to the Governor.

Nguyen Viet Manh, Director of the central bank's Credit Department, said at a conference in May that the credit links for investors, contractors, material suppliers and banks played an important role in removing problems for the real estate market.

The credit-link model was introduced together with the credit package worth 50 trillion VND (2.38 billion USD) by the Vietnam Construction Bank and property Thien Thanh Corporation.

HCM City seeks to lure parking lot builders

Those who invest in building parking lots may be exempted from land use fees and land lease payments, if the Ho Chi Minh City municipal People's Committee's recommendations go into effect.

The committee also recommended other incentives to encourage parking lot construction, such as reducing corporate income tax and import tax for investors who import high tech equipment for the parking lots.

Additionally, the committee suggested listing parking construction projects as infrastructure development projects rather than real estate projects in order to make it easier for investors to access bank loans.

The city faces a critical shortage of parking areas. Under Government decision 58/QD-TTg, approved last year, the city aimed to have 1,145ha of parking space by 2020. Currently, however, there are less than 77ha.

Few taxi firms have enough financial capacity to rent parking spaces at night, so drivers park in the road. And while more than 3,200 buses are operating in the city, they have barely 16ha of parking space. The consequence is that parks and public entertainment areas are built narrowly to make room for bus parking. Half of Park 23-9 in District 1 is used as a parking area.

The municipal authority blamed the shortage of parking lots on the fact that administrative procedures for land allocation and investment were too complicated.

Vice director of the city's Transport Department Duong Hong Thanh said that current incentives were not attractive enough to investors.

The shortage of parking areas meant that trucks were often overloaded, as firms lacked space to unload goods, he said.-

Coal producer sees struggle ahead for second quarter

The Vietnam National Coal and Mineral Industries Holding Corporation (Vinacomin) has urged members to fully exploit market conditions, as coal consumption in the second quarter could face difficulties.

In an online meeting last week, Nguyen Van Bien, Deputy Director of Vinacomin, the country's top miner said that coal demands are low while the world's coal prices in the second quarter are declining compared with the first quarter.

Vinacomin's inventory remains high at roughly 600,000 tonnes of coal, Bien said.

Vinacomin targets to produce and consume 9 to 10 million tonnes of coal in the second quarter of 2014. The corporation is also hoping to complete 50-52 percent of the year's target in the first half of the year.

Besides encouraging members, whose production costs are low, to increase output in the second quarter, Vinacomin also requires other members with higher production costs to cut output.

In the first quarter of this year, despite the unfavourable weather, members of Vinacomin had managed to maintain their production levels, ensure jobs and income for their employees.

Vinacomin completed 25 percent of its annual plans. The corporation produced 9.7 million tonnes of coal, fulfilling 25.6 percent of yearly plan. Coal consumption was estimated at 9.35 million tonnes, meeting 26.7 percent of yearly target.

The group generated 25.8 trillion VND (1.22 billion USD) revenues or 24.5 percent of annual plan, up 8.5 percent on year. Notably, revenues from electricity production and sales hit 31.1 percent of yearly plan.

Vinacomin's coal consumption last year was estimated at 39 million tonnes, almost the same as that of 2012, including 11.6 million tonnes for exports, down 19.6 percent, year on year and 27.4 million tonnes of domestic consumption, up 11 percent, year on year.

Central Highlands targets at least 1.2 million tonnes of coffee

The Central Highlands is striving to harvest at least 1.2 million tonnes of coffee in the 2014-15 crop.

To meet the target, the Central Highlands Agro-forestry Science and Technology Institute recommended local farmers provide sufficient fertilizers for coffee trees during their development period. The fertilization needs to be conducted in a timely and right manner, it added.

In addition, the institute has also instructed farming households to clean gardens, cut off unnecessary branches.

The region now has more than 561,000 hectares of coffee, with Dak Lak province having the largest area of 203,500 hectares.

Price regulation steering committee established

Prime Minister Nguyen Tan Dung has signed a decision to establish a Steering Committee for Price Regulation, to be headed by Deputy Prime Minister Vu Van Ninh.

The Minister of Finance has been appointed as Deputy Head. Committee members include leaders of ministries and agencies: the Ministry of Finance, Ministries of Industry and Trade, Ministry of Planning and Investment, Ministry of Health, Ministry of Education and Training, Ministry of Transport, Ministry of Agriculture and Rural Development, the Government Office and State Bank of Vietnam.

The committee is responsible for conducting research to assist the Government in reviewing and approving major policies and directions on price regulation in specific periods.

At the same time, the committee is in charge of deciding detailed measures to control the price of several commodities and services and devise measures to stabilise the price of important and essential goods and services.

The committee is also assigned to help the Government direct ministries, agencies and People's Committees of provinces and cities to implement State management over price in accordance with the Government's requirements and goals on inflation control and macroeconomic stability.

MoF sticks to decision on tax arrears collection

The Ministry of Finance will not change its decision to collect tax arrears amounting to VND400 billion (US$19 million) from eight petroleum importers.

Minister Dinh Tien Dung said Prime Minister Nguyen Tan Dung had approved the decision.

Dung added that the decision had also been endorsed by the State Audit of Viet Nam, which said that the enterprises had to make customs declarations and pay tax when they changed from working with imports and re-exports to servicing domestic consumption temporarily.

Last year, the General Department of Customs sent tax arrears collection notices to the Viet Nam National Petroleum Group (Petrolimex) amounting to VND170 billion; PetroVietnam Oil (PV Oil) of VND66 billion; Dong Thap Petroleum Trading Company (Petimex) of VND56.5 billion; Nam Viet Oil Refinery and Petrochemicals JSC (Nam Viet Oil) of VND26 billion; the Military Petroleum Corporation (MIPECO) of VND19.7 billion; and the Hai Ha Road Transport Company of VND650 million.

However, all these firms did not agree with the claims.

Phan The Rue, chairman of the Viet Nam Petroleum Association (Vinpa), had told the Tien Phong newspaper that the arrears collection had not followed the law and damaged the economic status and prestige of the traders.

Rue said the association had sent documents to the Government Office, the Finance Ministry and the relevant agencies several times. However, the ministry insisted that the move to collect arrears was in accordance with the law and regulations.

SHB finances apartment project

Sai Gon-Ha Noi Bank (SHB) will lend Tan Hoang Minh Group VND1 trillion, or US$47.62 million, to develop the D'. Le Pont D'or apartment project in Ha Noi.

The two parties signed an agreement on the financing, which includes medium- to long-term loans, late last week.

The project covers an area of nearly 5,400 square metres in Dong Da District and will provide over 300 apartments. The project started construction last October and is expected to be completed within two years.

SHB will sponsor home buyers at the project with funds amounting to 70 percent of the apartment values, with an interest rate of 8.68 percent per year for the first year. The company will cover 3.68 percent, which means that customers will only have to pay 5 percent in bank interests in the period.

The terms for the customer loans are between 15 and 25 years.

Vietcombank funds fertiliser business

The Joint Stock Commercial Bank for Foreign Trade of Vietnam and Ninh Binh Nitrogenous Fertiliser Company Ltd signed a credit contract worth VND800 billion (US$30.10 million) on Monday.

Chairman of the company's board Chu Van Tuan said the loan would help with business expansion and project implementation.

The Ninh Binh Nitrogenous Fertiliser Plant, one of the largest fertiliser plants in Viet Nam, has an annual capacity of 560,000 tonnes of urea.

Azerbaijan companies visit Viet Nam

The Azerbaijan president, accompanied by 50 leading economic corporations from Azerbaijan, will pay an official visit to Viet Nam from May 18 to 20 to promote economic links between the two countries.

The Azerbaijan corporations operate in the fields of agricultural exports and imports, food processing, cement, chemicals, infrastructure construction, iron and steel, construction materials, information technology, freight, furniture, clothing, glassware, trade and investment.

Vietnam Chamber of Commerce and Industry will hold a Viet Nam – Azerbaijan Enterprise Forum in corporation with the Azerbaijan embassy and Azerbaijan Export and Investment Promotion Organisation on May 19.

Two local plastic firms vying for market lead

Two leading players in the local plastic industry are scaling up their efforts to bolster business efficiency, but which will ultimately take the leading position is still in question.

In September last year, Central Region Tien Phong Plastic Limited, a member under Tien Phong Plastic JSC (NTP) which holds 70 per cent of market share in the north, opened a plastic pipe factory at Nam Cam industrial park in central Nghe An province.

The plant, with revenues of VND37.5 billion ($1.8 million) last year alone, envisages running at full capacity from this year to tap tax incentives.

The other firm, Binh Minh Plastic (BMP), with 50 per cent of southern market share, bought a 29 per cent stake in Danang Plastic JSC (DPC) and expanded its distribution network in the central region.

The company reportedly considered buying an additional 15 per cent stake of DPC from the State Capital Investment Corporation (SCIC) to have the right to intervene in management and restructure it into a production and distribution base but later suspended the plan after finding problems with DPC’s facilities.

Six years ago, NTP surpassed BMP in terms of both revenue and profit. It reported bigger chartered capital, though meager equity, compared to BMP. However, in 2009  

BMP raised its chartered capital to exceed NTP.

In terms of business efficiency, from 2011 BMP’s revenues came near NTP’s, and it surpassed it in terms of profits.

The earning per share of BMP is reported to be on the rise, while that of NTP is sliding.

BMP’s growth prospects for this year are reportedly limited as its factories are already running at full capacity and it may find it hard to increase market share due to low commissions for sales agents.

For NTP, its new production facility in the central region has helped it raise production and tap new markets.

But its home field in the north is seeing increasing competition from foreign firms as well as from firms in the south looking to expand their presence.

In this context, NTP has applied a raft of measures to maintain and further grow market share.

The company has constantly raised commissions for sales agents, as well as increased its promotion budget.

It has also kept prices at the same level for the last two years.

Many companies on the same field with NTP have followed suit, but BMP has not.

BMP has said it has no plans to lower prices or raise commissions.

Most recently, the company refused to be a supplier for a major project because even though the deal would have boosted revenue, it would have done little in the way of profits.

In the past, NTP has paid high dividends while borrowing to realise investment projects.

BMP has paid lower dividends and retained those profits for business activities, so it has little in the way of outstanding loans and fewer expenses.

Regarding new investment plans, according to NTP the demand for large HDPE pipes is steadily increasing in the Vietnamese market, and there is scarce supply.  

Therefore the company plans to spend VND150 billion ($6.9 million) to manufacture such products.

NTP general director Nguyen Quoc Truong said the company’s long-term investments might affect its revenue and profit targets in the near future, but were necessary to help the firm realise its ambition of becoming the leading plastic pipe manufacturer in Vietnam in the near future.

In terms of BMP, in 2012 it announced plans for a new factory in southern Long An province, but suspended the project due to falling consumption.

It now envisages starting the project this year with a VND160 billion ($7.6 million) first-phase investment and plans to complete the plant in the third quarter this year.

In the first quarter this year, NTP posted VND570 billion ($27.1 million) in revenue, up 8 per cent on-year while its pretax profit slid 8 per cent on-year to VND78 billion  

($3.7 million) whereas BMP reported an 18 per cent revenue jump to an estimated VND457 billion ($21.7 million) with profits up 2 per cent on-year to VND102 billion ($4.8 million).

Da Lat to export veggies to South Korea

Da Lat will export 60 tons of vegetables a month to South Korea starting this month.

Nguyen Cong Thua, head of Anh Dao Cooperative, said under the contract South Korean’s CJ Group would also train cooperative members in vegetable-farming techniques.

Da Lat exports 13,000 tons of vegetables a year to many countries and territories including Japan, Taiwan, Singapore, the US, and the EU.

Lam Dong Province, home to Da Lat, has 12,000 hectares under vegetables, with most of the farms using advanced techniques.

Exports fetch VND400 million (US$18,970) a hectare a year.

An expected 500-700 international fund managers and Vietnamese business leaders are expected to gather at the Vietnam Investment Forum 2014 (VIF) to hear legendary investment advisor Marc Faber and other doyens share their views on global investment and opportunities in Vietnam, as well as to seek potential partners.

As the government is determined to restructure the economy towards sustainable development, great opportunities are opening up for investors around the world, VIR  

Editor-in-chief Dr Nguyen Anh Tuan said at a press conference held last week in Ho Chi Minh City to announce the event.

Tuan pointed out the government’s bold steps to reform the banking industry and the stock market as well as to equitise hundreds of state-owned enterprises between now and 2015, saying their foremost need is to mobilise capital and gain experience and ideas from international investors. But the question is how to bridge these opportunities with international capital flows?

“This question has prompted us to join hands with HVS Vietnam Securities Co. and AFC [Asia Frontier Capital] to design a platform, the VIF, to facilitate dialogue, engagements and networking between foreign investors and local business leaders,” he said.

Tuan, who is also chief organiser of the VIF, told reporters that the event was unique. He said it would be a venue for international investors and Vietnamese business leaders to exchange information and find partners.

The event will feature investment guru Marc Faber as the keynote speaker. Tuan said, “Dr Faber is a strategist and one of the most influential figures in the investment world, so the primary goal is to help international investors and Vietnamese business leaders meet and interact with him and other financial heavyweights. Through this they can keep abreast of changes in the world and expand their view on global issues that may affect their investment and business activities.”

Dr Christian Kamm, president of US-backed investment advisory firm Kamm Investment, based in Ho Chi Minh City, said in a statement, “We appreciate the initiative of inviting Dr Marc Faber to join the event. We believe what he is going to share at this year’s VIF will be of great value to international investors as well as local business leaders.”

Dr Nguyen Son, head of the Market Development Department of the State Securities Commission (SSC) said VIF 2014 will be one of a series of events the SSC would take part in this year. He believed VIF would be an interesting draw to foreign investors and that Marc Faber could help them identify investment opportunities in frontier/emerging markets and specifically in Vietnam.

VIF is scheduled for June 19 and will cover critical topics of concern from businesses and investors.

Under the theme “Have we entered the terminal phase of a gigantic global credit and asset bubble?”, Faber will reiterate his controversial prediction that the world is about to witness a new financial crash deemed to be even worse than those seen in the recent past. He will also explain how the credit and asset bubble was created and its consequences and opportunities for Vietnam.

VIF 2014 will also see the presentation of other high-profile fund managers such as AFC CEO Thomas Hugger, who will deliver a presentation on “Investment strategy in Asian frontier markets and in Vietnam”, and VinaCapital CEO Don Lam, who will ask “Will Vietnam be a destination for foreign capital flows?”.

Faber, SSC Chairman Vu Bang, and other dignitaries will join a panel to discuss “The rise of frontier/emerging markets and opportunities for Vietnam?” – the ultimate theme of the forum. Andy Ho, managing director and chief investment executive of VinaCapital, will act as the panel moderator.

The event will include a business matching programme arranged by the organisers to help foreign investors and local firms find potential partners.

“The agenda and its topics are timely and offer investors unique insight into the role of frontier/emerging markets. Given the reputation of the organisers, as well as the world-renowned reputation of Dr Faber, we believe VIF 2014 will attract the attention of numerous investors and corporations.”

VIF 2014 is organised under the auspices of the Ministry of Planning and Investment. Sponsors include Kamm Investment, Saigon Thuong Tin Commercial Bank (Sacombank) and Vietnam Dragon Securities Co. (VDSC).

Media sponsors include the Saigon Times Group, Nhip Cau Dau Tu, Vietnam Economic Times, Doanh Nhan Sai Gon, VTV1, HTV9, InfoTV, VITV, FBNC and others.

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