Over 200 companies, with more than 85% being Vietnamese firms and the remainder Cambodian entities, will take part in the Vietnam-Cambodia Trade-Services Exhibition 2013 that will open today at Mondial Center in Cambodia’s Phnom Penh.

Corporate participants’ products will be showcased at two main areas, one for foodstuff, home electronic appliances, stationery and interior furnishing items, and the other for tourism, healthcare and cosmetics products and advertising designs.

The fair is expected to create opportunities for Vietnamese companies to introduce products and services to Cambodian consumers, showing them good production capacity, quality and good prices of home-made items.

The event is also expected to help Vietnamese enterprises to further tap the Cambodian market by expanding distribution networks and increasing their competitive capacity and positions in terms of quality and prices in Cambodia.

Specially, Vietnamese entities will for the first time join the tourism exhibition in Siem Riep in June and another event in Battambang in November, which are all arranged by the HCMC Investment and Trade Promotion Center (ITPC).

Pho Nam Phuong, director of ITPC, said the HCMC government had agreed to fund all advertising expenses to promote products via banners, radio stations and television channel Apsara in Cambodia since the start of June.

Vinh Phuc axes delayed projects

The northern province of Vinh Phuc has got tough on long-stalled projects and those which have failed to comply with the regulations, according to the provincial Investment Promotion Agency (IPA Vinh Phuc).

The agency said on its website that seven foreign direct investment (FDI) projects whose registered capital totaled over US$300 million lost their investment certificates last year.

They included the US$76.59 million Ba Thien industrial park project of Taiwan firm Compal. Compal got an investment certificate in 2007 and pledged to develop an industrial park for technology enterprises on 327 hectares.

By the time the provincial authority decided to cancel the investment certificate, the investor had only finished ground leveling and construction of roads, and wastewater and drainage facilities.

Another big project that was invalidated last year is the US$200-million mobile phone project of Taiwan firm Foxconn. Licensed in 2008, the project was scheduled for operation one year later, but work has yet to start on this project.

Domestic investors lost their investment certificates as well. According to IPA Vinh Phuc, the province took back the investment certificates from 14 domestic projects with total registered capital of over VND3.58 trillion last year. They included a university project of Vietnam National Oil and Gas Group, which was required to divest from non-core businesses.

However, the 2015 FDI approvals in the province were high, with 30 fresh FDI projects worth a combined US$269.48 million and 26 operational projects adding an extra US$197.15 million. In all, the total FDI pledges amounted to US$466.62 million last year, over two times higher than the target.

Meanwhile, the province’s domestic investments in 2015 almost doubled the target with around VND9.14 trillion registered for 44 new projects and VND333.25 billion for four operational projects.

Vinh Phuc now has 205 FDI and 601 domestic projects with total capital pledges of US$3.25 billion and over VND44 trillion respectively.

Vietnam attends third India-CLMV cooperation conference

India’s Ministry of Commerce and Industry and the Confederation of India Industry held the third cooperation conference between India, and Cambodia, Laos, Myanmar and Vietnam (CLMV) in New Delhi from January 11-13.

Vietnamese Deputy Minister of Industry and Trade Nguyen Cam Tu, Ambassador Ton Sinh Thanh, and leaders of Tay Ninh, Soc Trang, Tien Giang, Ninh Thuan and Ca Mau provinces, and over 30 businesses operating in the fields of agriculture, fishery, transport, household appliances and building materials attended the conference.

Themed “India – CLMV regional integration: Developing regional value chain”, the event focused discussions on measures to intensify economic integration connectivity and developing a value chain between India and CLMV countries.

According to Nirmala Shitharaman, Indian Minister of State for Commerce and Industry, trade between the two sides reached over 11 billion USD, but potential has yet to be tapped fully.

She proposed establishing a project development fund to maintain production facilities in CLMV countries.

Speaking at the event, Deputy Minister Tu said that regional connectivity towards developing the regional value chain is increasingly popular due to its important role today.

Strengthening regional cooperation and cooperation between sub-regions has great significance for economic growth of not only member countries but also the whole region, Tu said.

He added that Vietnam continually supports India’s initiatives and proposals to boost the country’s relations with ASEAN, including the one to speed up the signing of the Regional Comprehensive Economic Partnership (RCEP) agreement between ASEAN and its six partners countries, including India.

Saigon-Hanoi Bank opens subsidiary in Laos

The Saigon-Hanoi Bank (SHB) opens a wholly-owned subsidiary in Laos on January 15.

The new bank is being upgraded from a SHB transaction office, which was opened in Laos in 2012. It will have a charter capital of 50 million USD.

SHB specialises in credit services, currency, gold trading and international payments.

After merging with the Hanoi Building Bank, or Habubank, in August 2012, SHB's equity reached about 9.5 trillion VND (433.61 million USD) at the end of September 2015.

SHB is the third Vietnamese bank to open a subsidiary in Laos, after Vietinbank and Sacombank.

Laos has so far attracted 22 billion USD in foreign direct investment from 54 countries and territories, such as Vietnam, Thailand, China and France.-

Vietnamese enterprises in Switzerland, Russia enhance trade relations

Ambassador Nguyen Trung Thanh hoped for successful relations between Vietnamese enterprises in Switzerland and Russia, which are expected to open up new business opportunities.

Thanh, who is Head of Vietnam’s Permanent Mission to the UN, the World Trade Organisation and other international organisations in Geneva, made the statement during a meeting of Vietnamese businesses in Switzerland and the Vietnamese Business Association in Russia (VBAR) from January 12 to 17.

In the working session in Moscow, Ambassador Thanh expressed his enthusiasm for the Hanoi- Moscow trade centre (Incentra), which has been billed as one of Vietnamese expats’ greatest achievements in foreign countries.

VBAR Vice Chairman Bui Van Hoa briefed Ambassador Thanh and Vietnamese firms in Switzerland on Russia’s socio-economic conditions, highlighting that economic difficulties in Russia are affecting Vietnamese people’s business.

Ambassador Thanh and Vietnamese businesses will continue to meet with VBAR members in Saint Petersburge and Krasnodar.

Chinese businesses bolster trade promotion in HCM City

A Chinese enterprise delegation participated in a Vietnam-China business exchange programme in Ho Chi Minh City on January 14.

The event was jointly organised by the Vietnam Chamber of Commerce and Industry (VCCI) Ho Chi Minh City branch, and the Chinese International Businesses Association.

The foreign delegation comprised of representatives from the fields of construction and agricultural materials, chemistry, industrial electricity, logistics, and real estate.

Vice Chairman of the Chinese International Businesses Association Zhang Shuai said Ho Chi Minh City is both a traditional and a potential market for Chinese enterprises to expand investment and business activities.

He added the Chinese businesses would like to expand cooperation and relations with Vietnamese partners and vice versa.

According to VCCI, the two countries enjoyed a total import-export turnover of 66.3 billion USD in 2015, up 12.9 percent compared to 2014.

China has 1,258 active projects in Vietnam with a total registered investment of 8.6 billion USD. China was the chief market of Vietnamese tourism in 2015 with 1.78 million visitors.

Nguyen The Hung, Deputy Director of the VCCI – HCM City branch said Vietnam-China trade relations has progressed in recent years. He also hoped the two countries’ enterprise community seek long-term business agreements.

A workshop to promote trade and economic cooperation between Vietnam and the British Business Group Vietnam (BBGV) took place in northern Thai Nguyen province on January 14.

Present at the workshop were representatives of the United Kingdom’s Embassy to Vietnam, the provincial authority and universities from the two sides.

Hi-tech industry and high-quality education are the main focus of the BBGV in Thai Nguyen, BBGV Vice President Chris Jeffery said, adding the province has great potential in education while the UK has worked closely with Vietnam in the field.

Vietnam and the UK have together stepped up the operation of the Vietnam-UK Institute for Research and Executive Education, and plan to establish the Vietnam-UK University in central Da Nang City, he stated.

The British side vowed to support vocational training for local workers when it cooperates with provinces in Vietnam.

For his part, Vice Chairman of the provincial People’s Committee Trinh Viet Hung said Thai Nguyen always welcomes partnership between businesses and educational establishments of the province and the UK.

At the event, the Department of External Affairs under the Ministry of Foreign Affairs and the BBGV inked a memorandum of understanding (MoU) for their cooperation, the first after the BBGV has operated in Vietnam for 20 years.

Vietnam and the UK established their diplomatic relations in 1973. The ties were upgraded to a strategic partnership in September 2010.

British Prime Minister David Cameron paid his first visit to Vietnam last year, marking a milestone in the two country’s history.

Living space per person to increase to 22.6 sq.m in 2016

The Ministry of Construction (MoC) has set the target of raising average living space per person to 22.6 square metres this year, an increase of 0.6 square metres against the figure of 2014.

To achieve the goal, the ministry will focus on directing the implementation of the Law on Housing and other relevant decrees and circulars as well as guiding and supervising localities in implementing key housing development programmes.

According to the statistics of the MoC’s Agency for Management of Housing and Real Estate Market, the average living space per person reached 22 square metres by December 2015, up 1.1 and 4.5 square metres compared to 2014 and 2010, respectively.

In 2015, about 1 million square metres of social housing in urban areas were developed, bringing the total figure nationwide to 2.8 million square metres.

The social housing programme also produced positive results last year, with 13 housing projects with 6,164 apartments for low-income earners and 20 projects with 8,273 apartments designed for workers.

Another 171 projects are underway, which will provide a total of 130,590 apartments to low-income earners and workers.

In addition, the housing programme for students has built 85 dormitories, providing accommodations for around 220,000 students.

Deputy PM: coal sector must ensure national energy reserve

Deputy Prime Minister Hoang Trung Hai has asked the coal sector to prioritise coal production for domestic use, thereby ensuring the stability of national energy reserve.

During a conference convened by the Vietnam National Coal and Mineral Industries Group (Vinacomin) in Hanoi on January 14 to review its 2015 activities and launch 2016 tasks, he requested Vinacomin increase exploration and mining using advanced and eco-friendly technologies.

It was required to devise cost-effective business plans, and solutions to climate change, while further promoting personnel training and improving the livelihoods of workers.

In order to extract 55 million tonnes of coal by 2020, the sector is expected to expand 10 mines and open 40 additional pits.

Dang Thanh Hai, Vinacomin General Director, said Vinacomin plans to earn more than 110 trillion VND from selling 38 million tonnes of coal, 1.2 million tonnes of which is for export. Imported coal is estimated at 1.5 million tonnes.

Vinacomin in 2016 will continue to manage the safety of its dams, continue operating the Lam Dong aluminum-bauxite complex, complete the Thach Khe iron ore construction works, as well as put into operation the Nhan Co aluminum factory, and Cao Bang cast iron and steel complex as scheduled.

In coal-fired power businesses, Vinacomin is to optimise the capacity of Na Duong, Cao Ngan, Son Dong, Cam Pha 1, Cam Pha 2, Mao Khe, Dong Nai 5 and Nong Son power plants, as well as ensure the progress of building Na Duong 2 and Quynh Lap 1 power plants.

Last year, Vinacomin turned out 37.6 million tonnes of coal and sold 35.5 million tonnes domestically, including 1.26 million tonnes went shipping overseas.

In 2015, it raked in more than 106.8 trillion VND (4.85 billion USD), up 3 percent from 2014 and contributed 12.5 trillion VND (56.8 million USD) to the State budget, or 103.4 percent of their target.

Vietnam expects cement consumption of 74 mln tonnes in 2016

Around 74-75 million tonnes of cement are expected to be sold in 2016, three million tonnes higher than that of 2015.

This year, no new production supply chains will be put into operation, as the capacity of current chains will still meet demands.

According to Le Van Toi, Head of the Building Materials Department under the Ministry of Construction, the total output of cement will rise in 2016, as a production chain of the Cong Thanh Cement Group increased its capacity by 3.6 million tonnes of cement in late 2015.

Last year, two cement projects were put into operation, raising the number of production chains to 76 with total designed capacity of 81.5 million tonnes.

Over 72 million tonnes of cement are estimated to be sold in the year, up 3 percent from that of 2014.

Some 16.25 million tonnes were shipped abroad, down 17.3 percent year-on-year, but domestic consumption rose by 11.1 percent to 56.5 million tonnes.

British paper: Vietnam, an attractive market for Japan’s ANA airline

Vietnam could be an attractive market for Japan’s All Nippon Airways (ANA) as the Japanese airline has been pursuing a plan to expand its international operations since 2010, the UK-based Financial Times said in recent article.

Furthermore, like many other Japanese companies, ANA Holdings is making its way into Vietnam as it seeks to reduce its exposure to China, according to the article.

Japan’s biggest airline group by revenue has inked a memorandum of understanding with Vietnam Airlines, the national flag carrier of Vietnam, to purchase an 8.8 percent stake for 2,431 billion VND, or 108 million USD, it said.

According to the article, the deal enables the two carriers to code-share on certain routes between Vietnam and Tokyo. This means both airlines can expand their networks by selling tickets on some of each other’s flights.

The two carriers also agreed to combine their operations in aircraft maintenance, catering, check-in, and ground handling at airports in order to reduce costs.

Additionally, ANA will have the right to elect a representative to the board of Vietnam Airlines.

As part of its expansion plan, ANA has signed a deal to buy three Airbus A380 aircrafts, the world’s largest passenger jet.

ANA raised 170 billion JPY, or 1.4 billion USD, in an equity issued in 2012 while Vietnam Airlines launched an Initial Public Offering (IPO) in November 2014.

Direct investment by Japanese companies in Vietnam tripled to 9 billion USD between 2011 and 2014, compared with the previous four years, the Japan External Trade Organisation (JETRO).

Mekong Delta should build logistics chains to boost exports

Building production and logistics chains is one of the solutions proposed by a provincial official in the Mekong Delta in order to create breakthroughs in agricultural development.

Director of An Giang provincial Department of Agriculture and Rural Development Tran Anh Thu, a delegate to the upcoming 12th National Party Congress which is slated for January 20-28, 2016, talked about the matter in an interview with Vietnam News Agency.

He said ports in An Giang and Can Tho city are incapable of shipping the delta’s farm produce abroad. Therefore, a majority of the products must be transported to Ho Chi Minh City’s ports, resulting in their increased pricing and reduced competitiveness.

Therefore it is a must to build production and logistics chains to cut down on intermediary links, subsequently costs and better control product quality, he suggested.

Equally important is boosting the application of science and technology into agricultural production and developing infrastructure, not only for the Mekong Delta but also across the country to increase the competitive edge of farm produce in domestic and foreign markets, he noted.

The Director also highlighted the significance of building national brand names for key products and support businesses in production and logistics chain, adding that strong businesses will assist the growth of farmers and cooperatives.

As Vietnam has officially joined the ASEAN Economic Community and soon the Trans-Pacific Partnership (TPP) Agreement, some domestic farm produce could face difficulties. However, many staples, including those of An Giang such as seafood and rice, have a lot of potential to make inroads into new markets, he said.

He stressed that it is essential to forge ahead with agriculture restructuring, focusing on shifting ineffective rice cultivating land to growing other better suited crops such as vegetables and fruit for export.

The official noted that An Giang is one of the biggest rice and seafood exporters in the country, with the average gross regional domestic product (GRDP) growth of 8.63 percent between 2010 and 2015. The per capita income in 2015 reached nearly 40 million VND (1,800 USD) per annum.

In 2015, local products were sold to 133 countries and territories, up 26 countries against 2010.

The ratio of poor households reduced to 2.5 percent by the end of 2015.-

Da Nang’s business incubator makes debut

The central city of Da Nang’s business incubator was officially put into operation on January 14.

The facility operates under the name of the Da Nang Start-up Support and Investment Company Ltd with initial charter capital of around 30 billion VND (1.4 million USD).

It aims to boost business start-up activities and nurture business projects invested by the municipal authorities, enterprises and individuals.

It also helps build and perfect the city’s business start-up system while promoting research and innovation activities among students of universities, colleges and vocational schools.

Also at the debut ceremony, the incubator announced eight projects in the fields of technology, environment, trade and education will receive support from the programme.

Japanese group eyes hi-tech agriculture in Can Tho

Japan’s Satake Group has expressed an interest in investing in hi-tech agriculture in the Mekong Delta City of Can Tho.

During a working session with Can Tho authorities in the city on January 14, Satake Asia Chairman Dave Tanaka said his group’s products have proven effective via a three-month trial in agricultural production in Can Tho and other localities in Vietnam.

Since November 2015, the group introduced several hi-tech agricultural machines to Can Tho, in a bid to raise productivity and product value while protecting farmers’ health.

The group called for local support for organising an exhibition of its technologies next April to introduce its products to more local farmers and enterprises.

The Japanese firm also invited local representatives to visit its branch in Thailand later this year.

Vice Chairman of the city People’s Committee Dao Anh Dung called on the group to facilitate access to its products among local people and enterprises through price policy, installment plan and technology transfer.

Private sector urged to be more active in integration

The private sector should be more active in building linkages and forming production chains to strengthen their competitive power, experts said.

Among the four major driving forces of growth – household economy and agriculture, private, State-owned and foreign invested (FDI) sectors, the FDI sector is the most dynamic. This sector accounts for 70 percent of the country’s exports and 20 percent of the national gross domestic product (GDP), according to statistics of the General Statistics Office.

Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said while the FDI sector is able to take advantage of the State’s policies for their development, the private sector remains weak with 98 percent of enterprises being of small and super small scale. Just two percent of them are of medium size and two percent of large scale.

Domestic private businesses are not strong enough to become partners of their FDI counterparts, Loc said, citing as an example the fact that the Samsung group cannot find any Vietnamese supplier of screws.

Vice Director of the Central Institute for Economic Management (CIEM) Vo Tri Thanh shared the view, noting that not only the support industry but the garment industry which contributes a great portion of Vietnam’ s exports also faces great challenges in securing domestic supply of yarns in order to enjoy preferential tariffs brought about by free trade agreements.

The experts are particularly concerned about the agricultural sector, which has few enterprises or brands capable to compete on the regional and global scales.

VCCI’s study shows that even with more than 20 years exporting rice, Vietnam so far has neither built any remarkable rice brands nor entered the high-end segment of the market. The price and quality of the country’s rice still stay in the lower end.

Tra fish and shrimp, other export staples, are losing ground in the European and US markets.

Vietnam’s fresh fruits have never been able to enter the Singaporean market, despite the good relations between the two countries and the absence of import tariff in Singapore. Besides the technical barrier, it is a fact that Vietnamese fruits cannot compete in terms of quality and costs with products of Thailand and Cambodia.

To push the development of the private sector, besides a State policy giving equal treatment to all economic sectors, private enterprises themselves should take the initiative in renovating production technology, modernizing equipment and machinery and enhancing their business administration capacity, the VCCI head suggested.

Loc also urged the private sector to be more active in seeking market and diversifying their products and services, as the demands of markets and customers are increasingly become stricter.

Tet prices to remain steady

The HCM City Department of Industry and Trade has instructed producers and distributors of many key goods to ensure that the supply from now until mid-February be at least 40 percent higher than in the same period last year to ensure there are no shortages during Tet (the Lunar New Year).

Until the New Year on February 8, the department and other agencies will regularly carry out checks to ensure there are enough stocks and of good quality and prices are steady.

According to a report from the department, the goods in stock during the period before will be worth VND16.2 trillion (US$736 million), of which goods worth VND6.9 trillion will be stocked as part of a city programme to keep prices steady. Most of the latter is comprised of food and other essential goods like cooking oil, sugar, and livestock.

Enterprises have reported to the department that inventories on hand account for 90 percent of the city's target for the period.

Nguyen Quoc Chien of the Department of Finance assured that because of careful preparations and abundant supply there would not be any scarcity or price hikes during the holidays.

Le Ngoc Dao, deputy director of the Department of Industry and Trade, said producer should nevertheless keep a close eye on demand to cope with emerging situations.

Any violations detected by inspectors with regard to quality or price, whether at traditional markets or supermarkets, would be severely penalized, she warned.

Though they expect demand to shoot up by 15 per cent in the run-up to and during the New Year, supermarkets in HCM City are set to offer promotions and keep prices low.

Le Thi Thanh Lam, general director of Sai Gon Food Trading Company, said though she knows food demand would increase by 70 percent during Tet, competition would be intense with many convenient shops opening around the city. This would be on top of the fierce competition between retailers as well as producers, meaning prices would not increase during Tet, she said.

Nguyen Hoang Anh, marketing director of Saigon Co.op – owner of CoopMart — the supermarket will not hike prices from now until Tet because of the harsh competition in the retail market.

Due to the competition and also pressure to achieve revenue targets during Tet, many companies are set to launch sales promotions.

The promotions will focus on essential goods for Tet.

Lotte Mart, for instance, will reduce the prices of sausages and Vietnamese ham by 15-30 percent.

Metro has co-ordinated with its 300 suppliers to reduce prices of 2,000 essential goods by 49 percent.

Big C will reduce prices of more than 1,000 products by up to 50 percent.

Several food companies that directly retail their products have also launched sale promotions.

Lam said Sai Gon Food has earmarked VND2 billion for its promotions.

Coal output for domestic use urged

Deputy Prime Minister Hoang Trung Hai has asked the coal sector to prioritise coal production for domestic use, thereby ensuring the stability of the national energy reserve.

During a conference convened by the Vietnam National Coal and Mineral Industries Group (Vinacomin) in Ha Noi yesterday to review its 2015 activities and launch 2016 tasks, he requested Vinacomin to increase exploration and mining using advanced and eco-friendly technologies.

It was required to devise cost-effective business plans, and solutions to climate change, while further promoting personnel training and improving the livelihoods of workers.

In order to extract 55 million tonnes of coal by 2020, the sector is expected to expand 10 mines and open 40 additional pits.

Dang Thanh Hai, Vinacomin general director, said Vinacomin plans to earn more than VND110 trillion ($4.8 billion) from selling 38 million tonnes of coal, 1.2 million tonnes of which is for export. Imported coal is estimated at 1.5 million tonnes.

In 2016, Vinacomin will continue to manage the safety of its dams, continue operating the Lam Dong aluminium-bauxite complex, complete the Thach Khe iron ore construction works, as well as put into operation the Nhan Co aluminium factory, and the Cao Bang cast iron and steel complex as scheduled.

In coal-fired power businesses, Vinacomin is to optimise the capacity of Na Duong, Cao Ngan, Son Dong, and Cam Pha 1, in addition to Cam Pha 2, Mao Khe, Dong Nai 5, and Nong Son power plants, as well as ensure the progress of building Na Duong 2 and Quynh Lap 1 power plants.

Last year, Vinacomin turned out 37.6 million tonnes of coal and sold 35.5 million tonnes domestically, including 1.26 million tonnes that was shipped overseas.

In 2015, it raked in more than VND106.8 trillion ($4.85 billion), up 3 per cent from 2014 and contributed VND12.5 trillion ($56.8 million) to the State budget, or 103.4 per cent of their target.

SBV policies aim to control inflation, stabilise growth

The State Bank of Vietnam (SBV) is to actively implement flexible monetary policies to help the country control inflation, maintain macro-economic stability and accelerate economic growth this year.

The Government has tasked the SBV to ensure this following a resolution on socio-economic development plans in 2016, in tight conjunction with ministries and relevant agencies.

It emphasised that exchange rate policies must stabilise the foreign currency market, and interest rate operations are to foster lending growth and quality. That required strict control of loans allocated in high-risk areas, such as real estate and investment projects breaking even in a long period of time.

It asked the central bank to intensify foreign currency and gold trading and continue to improve the national foreign reserve, besides stimulating non-cash payment.

Also, the SBV must closely observe developments in international monetary and financial markets to take suitable action against negative impacts that global economic integration may have on the domestic market.

Comprehensive reorganisation of credit institutions is to be continued to enhance their financial capacity and operational efficiency, and consolidate their security. Drastic intervention of the government is needed for thorough handling of fragile institutions.

Spontaneous mergers and acquisitions, reduction in the cross ownership, and divestments from non-core lines of business are encouraged for credit institutions.

The capacity and resources of the national bad loan settling firm, Viet Nam Asset Management Company, is to be improved to help maintain the overall ratio of bad debts below 3 per cent of the total outstanding loans in the economy.

SBV Governor Nguyen Van Binh said on the sidelines of an online government conference recently late last month that the economic growth target of 6.7 per cent this year might push inflation out of control.

Last year's inflation rate was mainly due to external factors, especially the falling global prices of oil and other staples. This year's inflation would be around 3 per cent if those factors were excluded.

Binh asked ministries, sectors and localities to keep a firm grasp on prices, particularly essential goods, while affirming that the central bank would strive to maintain overall interest rates or cut down average medium to long-term lending rates by 0.3 per cent to 0.5 per cent.

Credit growth of less than 20 per cent would match the targeted economic growth rate, he added.

On January 4, the central bank began setting the official reference exchange rate every day, instead of maintaining a fixed rate for a longer period of time. It believed that the new mechanism would enable it to ensure its management objectives, while letting the rate move flexibly as per global monetary fluctuations.

In its resolution, the government also said that monetary policies must be properly combined with fiscal and other macro-economic policies for quality and sustained development.

Five-year bond yield seen rising this year

Yields of Government bonds with terms five years or longer will likely rise this year, VPBank Securities said in a report yesterday.

The research said the G-bond market experienced its most successful trading in the fourth quarter of 2015 with bonds sold at auction at between 70 and 90 per cent of. The Government mobilised VND131 trillion ($5.8 billion) in the quarter, thanks to the 3-year bond supply and newly launched products from the State Treasury in December such as long-term bonds and zero-coupon bonds that sold at 100 per cent.

The research said the sale of G-bonds was still growing from 2014 with a total issuance of VND243 trillion ($10.8 billion), up 2.8 per cent in G-bonds and government-guaranteed bonds

Despite good demand in the last quarter, the State Treasury, the largest G-bond issuer in Viet Nam, failed to meet their target for the year. The State Treasury issued VND196 trillion ($8.7 billion), completing 51.2 per cent of the year's target and a reduction of 7 per cent from 2014. Of the bonds, 3-year and 5-year bonds accounted for the highest proportion of sales.

At the same time, most of the bond yields rose higher than they were in 2014. By the end of the year, yields on 5-year bond in the primary market was 18 basis points higher reaching 6.58 per cent per year while the yield of the 10-year bond reached 6.95 per cent per year, up 76 basic points and yield of 3-year bonds rose 55 basic points to 5.74 per cent per year. As the only exception, yield of 15-year bonds fell 15 basic points to 7.65 per cent per year.

VPBank Security thought that the yield increased due to low demand for bonds and the fluctuations in the exchange rate and it believed that yields will continue to rise, estimating that 5-year (and more) bond yields could reach between 7 and 7.3 per cent this year.

The increase will be due to the large amount of the bonds offered to support the state budget. The National Assembly only approved the issuing of 3-year bonds, the most attractive bonds, to not exceed 30 per cent of the total issuance volume, so the last 70 per cent of the bonds will have a term of 5 years and more.

Most investors focus on 3-year bonds because of higher liquidity and lower risk, while the supply of longer term bonds was larger but demand for them was lower.

Meanwhile, downward pressure on the dong, the fear of a devaluation of the Chinese yuan and possibly more interest rate hikes from the US Federal Reserve System may make investors set aside a portion of their capital to hedge instead of buying local bonds.

Furthermore, local credit growth was expected to be as high as 18 or 20 per cent while the banking system will continue restructuring activities in 2016.

Viet Nam and other developing countries in the Asia-Pacific region are in need of a global co-operation mechanism for sustainable development, according to participants at a two-day conference held in Da Nang yesterday.

Developing countries in the region could not cope with climate change and maintain their economic growth alone. Technology transfers and financial support from developed countries were imperative to developing countries in the fight against climate change.

The conference, part of the Asia-Pacific Regional Initiative on Energy, Environment and Ecosystem (3E) Nexus for Sustainable Development, organised by Japan's Tokyo University, gathered 40 scientists, lawmakers and organisations in the Asia-Pacific region.

Speaking at the conference, Deputy Minister of Natural Resources and Environment Nguyen Linh Ngoc said the event provided a good opportunity to increase sustainable development in the region.

Participants said challenges triggered by climate change could be seen as opportunities for a new green economy based on energy efficiency, low-carbon technology and environment-and-ecosystem protection.

3E Nexus is one of these efforts. The Integrated Research System for Sustainability Science (IR3S) platform started it to enhance research collaboration on energy, the environment and ecosystems in order to create a sustainable future in targeted Asia-Pacific countries.

Created in 2005 by the Committee for Presidential Initiatives as the first interdisciplinary research project at the University of Tokyo, IR3S was a global pioneer in creating the field of sustainability science.

It is working toward building a global foundation for its studies.

Hanoi will export more farm products including fresh oranges, pomeloes and longans to Malaysia and Japan in the coming time.

The information was released from a memorandum of understanding (MoU) signed in Hanoi on January 14 by the Hanoi Department of Agriculture and Rural Development (DARD) and Malaysian Fresh Farm SDN BHD and Japanese Meika Shoji group.

Under the MoU, Meika Shoji will transfer planting, harvesting, processing and preservation technologies to DARD, and provide it with information of the demanding Japanese market, legal regulations, prices and special market features.

Meanwhile, Fresh Farm SDN BHD promised to supply a set of product standards, and the planting, harvesting and preservation process and to organize the export and distribution of Hanoi’s products in Malaysia.

DARD Director Chu Phu My said Hanoi desires to cooperate with foreign companies to introduce its farm products to world customers.

Vietnam, Japan locality promote cooperation

The Vietnamese embassy in Japan has introduced Vietnam, its human resources and investment and business climate to Japanese localities.

A working group from the embassy led by Nguyen Truong Son, Minister Counselor, Deputy Chief of Mission paid a visit to Gunma prefecture from January 14-15. They met with Governor Osawa Masaaki, others senior leaders and businesses which are investing in Vietnam.

During the meeting, Governor of Gunma prefecture Osawa Masaaki said he will lead a delegation of authorities and enterprises during a visit to Vietnam on February 15-18.

Meanwhile, Minister Son affirmed that the Vietnamese government and businesses expressed wish to strengthen cooperation with Japan’s localities and spoke highly of Gunma enterprises’ dynamism. He committed to actively cooperating with the prefecture for the benefits of both sides.

On January 14, the Vietnamese embassy in collaboration with Gunma prefecture’s authorities and Gunma Bank organized a seminar on Vietnam’s business climate and actual experiences with the participation of some 100 enterprises.

Gunma's modern industries include transport equipment and electrical equipment, concentrated around Maebashi and the eastern region nearest Tokyo. More traditional industries include sericulture and agriculture. Gunma's major agricultural products include cabbages and konjacs.

In the wake of the successful visits by governors of Ibaraki, Saitama and Kanagawa prefectures, Gunma prefecture governor’s visit to Vietnam is expected to give a fresh impetus to elevating Gunma-Vietnam relations in the coming times and contribute to deepening the strategic partnership between Vietnam and Japan.

EVN sparks new power developments

The state-run Electricity of Vietnam is expected to mobilise nearly $30 billion from local and international sources to develop power plants and power lines for 2016-2020, ensuring a stable supply of electricity well into the future.

Under its plan for the period, the power giant (EVN) has set a target to complete and operate 19 turbines from 11 electricity projects and prepare to commence construction of the country’s first nuclear power plant in the central province of Ninh Thuan.

Key power projects include Lai Chau hydropower plant, thermal power plant Vinh Tan, and Duyen Hai and O Mon power centres.

From 2011 to 2015, EVN spent nearly VND480 trillion ($22.3 billion) to develop power plants and the power grid, 2.37 times the amount spent from 2006 to 2010.

Electricity demand in Vietnam is expected to see a remarkable increase of more than 10 per cent per annum in the near future, due to a rapidly increasing population and economic growth. In particular, southern Vietnam faces a critical situation due to the current imbalance between existing supply and the increasing demand for electricity. There is an urgent need for the development of power generation infrastructure in the region.

Deputy Prime Minister Hoang Trung Hai warned that the lack of a stable supply of electricity in the southern provinces would increase the risk of power shortages if EVN and other investors of build-operate-transfer (BOT) projects delayed their work.

EVN’s deputy general director Dinh Quang Tri said in a conference that the southern power system would still have to cover around 25 per cent of demand from the northern and central regions, which is about 20 billion kWh for the whole year. He also stressed the importance of ensuring gas fuel and coal for the stable and safe operation of power plants in the south, such as Vinh Tan 2 and Duyen Hai 1.

The Vietnam Energy Association (VEA) had previously warned that power projects in Vietnam’s power development plan for 2011-2020 could miss deadlines, as most of the projects on the list lacked both investors and funds.

 “It will be hard for us to reach 75,000 megawatts of power generation capacity in the next eight years,” revealed a VEA document.

Tri said EVN had met demands for electricity for daily life, production, and business activities in 2015 with a total commercial electricity volume of 143.34 billion kWh of electricity, up 11.44 per cent over 2014.

In the past five years, commercial electricity volume has increased by 10.84 per cent per year. Annual electricity use surged by 11.7 per cent in the industry-construction sector, 20.1 per cent in the agriculture sector, 14.1 per cent in trade and services, 9.6 per cent in domestic consumption, and 7.6 per cent for other sectors, according to Tri.

He added that the commercial electricity volume in 2016 is expected to increase by 11-12 per cent compared to 2015, and that EVN would be able to provide an efficient supply of electricity for the nation.

Vietjet among HCM Ctiy’s top tourism enterprises in 2015

Low-cost carrier Vietjet Air has been honoured as a leading enterprise in stimulating tourism in Ho Chi Minh City in 2015, with a certificate of merit presented by the municipal People’s Committee for its positive contribution to the city’s tourism industry.

Vietjet Air has been partnered with the HCMC Tourism Association for three years, providing member travel companies preferred prices of 20-90% off, applicable to all flights and routes operated by Vietjet.

The move has helped develop quality tourism products with the best prices and enhance competitiveness of domestic tour prices compared to others in Southeast Asia.

In 2015, Vietjet sold nearly 500,000 tickets, accounting for about 5% of its transport volume.

In 2016, the airline aims to expand its routes and increase frequency, as well as accompanying the HCMC Tourism Association in tourist development programmes for both domestic and international destinations, offering the city’s residents more travel opportunities.

Currently, the carrier boasts a fleet of 31 aircraft, including A320s and A321s, and operates nearly 200 flights each day, serving nearly 20 million passengers to date.

It has already opened 44 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, the Republic of Korea, Chinese Taipei, China and Myanmar.

Ministry says will support large-scale rice field enterprises

Companies engaging in large-scale rice field model will be subject to many incentives including soft loans to buy farm produce as contracted with farmers or to stockpile rice, said the Ministry of Agriculture and Rural Development.

The ministry now is passing around for comments a draft version of policies aimed at encouraging collaboration between farmers and enterprises under the large-scale rice field model.

The tentative policies are to replace Decision 80 on incentives to stimulate farm produce demand via contracts which is no longer suitable after the nation became a member of the World Trade Organization.

As such, enterprises when developing the model will be subsidized 50% of expenses for agricultural promotion and vocational training targeting farming households. Besides, they will be given priority to borrow money with low lending rates to carry out contracts or stockpile farm produce in line with the Government’s plans.

Local cooperatives will be entitled to 100% of expenses for training management officers and an initial aid of 50% of costs for constructing warehouses and acquiring equipment for rice preservation.

Meanwhile, local farmers after joining the model will be funded 50% of costs for plant protection drugs and another 50% support for seedlings in the first crop.

Nguyen Van Tien, general director of An Giang Import-Export JSC (Angimex), which has taken part in the model over the past time, said this is a good policy and that it will encourage many more entities to develop large-scale farming.

According to the Cultivation Department under the agriculture ministry, in the winter-spring 2012-2013, as many as 21 southern provinces participated in large-scale rice field model with a total area of more than 76,500 hectares, up 50,000 hectares versus the summer-autumn crop 2012. The department expects the large-scale farming area to reach 200,000 hectares next year.

The large-scale rice field model was initiated in the summer-autumn 2011 and has been expanded gradually after every rice crop, with the number of corporate participants rising.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR