Local bourses experience mixed fortunes

Vietnamese share prices ended mixed last week, with the VN-Index at the HCM Stock Exchange falling and the HNX-Index at the Ha Noi Stock Exchange rising.

The lack of supporting good news led to the decrease of the VN-Index by a cumulative 0.37 per cent to 600.36 points while money pouring into speculative shares led to the increase of the HNX-Index by a cumulative 1.33 per cent to 90.74 points. Liquidity improved in both markets.

Trading volume in Ha Noi rose by 47.2 per cent over the previous week, averaging nearly 80 million shares worth VND1.124 trillion (US$53 million). Trading volume in HCM City likewise rose by 20.2 per cent, averaging 141 million shares worth VND2.5 trillion ($118 million).

Money inflows shifted from blue chips, securities and mining to construction and realty stocks. The real estate sector attracted the largest investment, with the most active shares in both markets in the previous week coming from FLC Group, Kinh Bac City Development, Tan Tao Investment Industry and Duc Long Gia Lai Group, as well as Development Investment Construction, Sai Gon Thuong Tin Real Estate, PetroVietnam Construction and Vinaconex.

However, KLF Joint Venture Global Investment Company (KLF) attracted the most attention with a whopping 122.5 million shares traded in just five sessions. More than 38 million of the company's shares accounting for 24 per cent of the company's charter capital were traded last Tuesday.

The price of each KLF share likewise increased by more than 17 per cent during the week, climbing from VND11,600 to VND13,600.

According to market insiders, speculators are trying to push up KLF share prices in hopes of profiting from the company's upcoming issuance of 74 million shares.

With regard to market outlook this week, many analysts predict the market to continue moving sideways, so opportunities to earn huge profits now will likely be difficult and require investors to choose the right stocks and be flexible in deciding whether to buy or sell at the right time.

"Medium-term prospects remain positive, so investors are advised to stick to medium-term portfolios," analysts at Bao Viet Securities Company noted.

According to FPT Securities Company analysts, the market can experience several fluctuations before stabilising. It is a positive sign that demand often grows when the market falls, they said.

"The current short-term support threshold is 579 points. Traders can increase holdings at this support," the analysts added.

Foreign investors ended as net sellers in HCM City last week, unloading shares worth VND399 billion ($18.8 million) and focusing on blue chips such as Kinh Do Corp, Hoang Anh Gia Lai Company, PV Gas and PetroVietnam Drilling and Wells Service.

They ended as net buyers in Ha Noi but for just a mere VND5 billion ($235,850). 

Buyback plan boosts ACB share prices

Asia Commercial Bank (ACB) has announced its plan to repurchase 17.5 million of its own shares, thereby attracting the attention of investors.

The noteworthy thing is that the plan was announced amid efforts to curb non-performing loans. It helped ACB shares retrieve a high of VND16,000 in spite of overall stagnant transactions in banking stocks.

The bank will buy back the shares from December 2 to December 31 at VND12,000 to VND19,000 (US$0.50 to $0.80) each and will therefore have to spend an estimated VND210 billion to VND332 billion ($9.9 million to $15.6 million).

It is common for companies to buy back their shares to prevent the price from falling too quickly and ACB is no exception, with its share price reaching its highest level in seven months.

Meanwhile, ACB's undistributed profit, the financial source for its planned buyback, was estimated to be a mere VND209 billion ($9.8 million).

The bank also aims to buy 523,000 treasury stocks and is currently holding nearly 28 million treasury stocks.

Last April, ACB registered to buy 33.8 million shares but succeeded in buying only 35 per cent of these shares because of price volatility, the bank said.

ACB's management board explained its step as a potential investment. "We will sell the shares when the price reaches our expectations," a representative said.

ACB's profit for the first nine months of 2014 hit VND3.4 trillion ($160.3 million), a 5.9-per cent year-on-year decrease.

The cost of risk provisions increased to VND664.4 billion ($31.3 million), surging by nearly 95 per cent, as non-performing loans rose to 3.07 per cent.

Apart from ACB, Eximbank likewise announced its plan to buy 62 million treasury stocks late last year, when changes in key bank positions and speculations on an impending merger drove the price down. However, the HCM City-based bank has managed to buy only six million treasury stocks so far.

VDC rolls out cloud service

The Viet Nam Datacommunications Company (VDC) unveiled its VNN Cloud service this week, which promises to help clients cut IT costs by simplifying its management while offering great security.

VDC also launched VBIS Cloud, cloud computing solution for enterprises based on VNN Cloud.

For one month VDC is running a promotion offering new users who have signed a one-year contract for VNN Cloud two additional months of free use along with VND2 million worth of gifts.

Lenovo unveils new devices

Lenovo launched in Ha Noi on Thursday its latest devices, enabling users to work and play in new ways.

The devices include the new Yoga Tablet 2 Pro, which redefines the tablet experience with the industry's first integrated projector for tablets, and the Yoga Tablet 2 that gives users the choice of two screen sizes and two different operating systems (Android and Windows).

Vietcombank increases lending by 10% in 9 months

Vietcombank's credit growth reached 10.2 per cent in the first nine months of 2014, with loans totalling VND302.18 trillion (US$14.39 billion), according to its November 12 financial report.

In the past nine months, deposits at the bank grew by 16.6 per cent, reaching VND387.33 trillion ($18.44 billion), while net revenue reached VND8.52 trillion ($405.71 million), a six-per cent year-on-year increase.

After-tax profits reached VND3.27 trillion ($155.71 million), an eight-per cent year-on-year increase, while the value of total assets as of September 30 was VND530.23 trillion ($25.25 billion), a 13 per cent increase over the entire year of 2013.

The bank's bad debt ratio was about 2.54 per cent of total outstanding loans at the end of September, slightly lower than the 2.72 per cent recorded at the start of 2014.

Northern bourse to collaborate with Vinalines

The Ha Noi Stock Exchange and Vietnam National Shipping Lines (Vinalines) on Thursday signed an agreement on public offering and listing on the stock market.

The collaboration is in line with the government's aim of equitising State-owned corporations.

Le Anh Son, General Director of Vinalines, said that nine of the group's subsidiaries had launched initial public offerings on the exchange, and five of them have been listed.

Genco 3 to be equitised next year

The privatisation of Power Generation Corporation 3 (Genco 3), which is fully owned by the Electricity of Vietnam, will be conducted next year, the Ministry of Industry and Trade has announced.

The deadline for completion of corporate valuation is January 1, 2015.

Under the State's direction, Viet Nam will have to equitise more than 400 State-owned enterprises next year.

Mutual Fund gets major Mobile World stake

Mutual Fund Elite announced on Thursday that it will become a major shareholder of Mobile World (MWG) by increasing its stake to 7.23 per cent.

On October 11, Mobile World's largest shareholder CDH Electric Bee sold around 3.2 million shares, or a three-per-cent stake, at the ceiling price of VND110,000 (US$5.1). It is speculated that Mutual Fund Elite bought the shares.

There are three large foreign shareholders of Mobile World now, including Mekong Capital.

FLC posts $14.4 million profit

Property developer FLC Group (FLC) posted an aggregate profit of VND303 billion (US$14.4 million) in the first nine months of the year, meeting 87 per cent of its yearly target.

According to its third quarter's earnings, FLC had a turnover of VND505 billion ($24 million) and pre-tax profit of VND125.2 billion ($5.9 billion). Notably, its turnover from real-estate sales contributed considerably to the profit amount. With the results, FLC reached the earning per share of VND1,316. Its equity is more than VND3.79 trillion ($180 million).

Doan Van Phuong, FLC's General Director, said that by the end of this year, a surge of turnover from property is expected, as some projects will be put on sale such as FLC Garden City, FLC Complex 36 Pham Hung in Ha Noi and FLC Samson Beach and Golf Resort in Thanh Hoa Province.

No ASEAN goods surge with tariff cuts

The reduction of tariffs under the ASEAN Trade in Goods Agreement (ATIGA) next year won't lead to a surge in ASEAN goods to Viet Nam, an official of the Ministry of Finance said.

Beginning January 1, 2015, Viet Nam will further cut 1,720 tariff lines from 5 per cent to zero under the ATIGA. About 7 per cent of tariff lines, or 600 items, are considered too sensitive to be cut to zero next year.

Nguyen Thi Bich, head of the Ministry of Finance's International Cooperation Department, said the tax cut on commodities such as steel, automobiles, and auto components would apply in 2018.

Petrol and tobacco companies have been negotiating for a tariff reduction after 2018, reported Tuoi Tre (Youth) newspaper.

Meanwhile, Viet Nam had been negotiating for the retention of the 5 per cent tax on especially-sensitive agricultural goods such as salt, sugar, chicken and eggs, as well as pork, and tropical fruits such as oranges, Bich revealed.

She expressed the belief that ASEAN goods would not flood the domestic market in spite of the tariff reductions because the nation had been following a schedule for a step-by-step cutting of tariffs under the ASEAN free trade agreement since 1999.

For instance, from 2012 to 2014, Viet Nam cut 7,000 tariff lines to zero and 2,000 tariff lines to 5 per cent.

Before 2011, Viet Nam's trade deficit with ASEAN reached US$5 billion to $7 billion each year, but this had been declining since 2012 and now stood at $3 billion per year, Bich noted.

The item with the largest trade deficit was petrol because Viet Nam exported crude oil worth $1.6 billion per year to ASEAN while it imported petrol and oil products worth $4.6 billion per year from other ASEAN countries.

Meanwhile, numerous domestic goods could compete with similar products made in other ASEAN countries, including computer and electronic products, electronic components and plastic products.

In the past three years, Vietnamese exports to ASEAN increased sharply mainly because of foreign direct investment enterprises, most of whom reduced imports from ASEAN.

CDH Bee cashes in with MWG share sale

As many as 3.2 million shares of the Mobile World Investment Corporation (MWG), worth VND351.9 billion (US$16.75 million), were sold on Monday.

These shares were reportedly owned by the CDH Bee Electric Limited Company. The firm, which is MWG's largest shareholder, had registered to sell the same amount of shares five days earlier.

According to local business news website Cafef.vn, the shares were transferred to a foreign investor.

Cafef.vn added that on November 10, 3.2 million shares were traded at a ceiling price of VND110,000 ($5.2) each, eight per cent higher than the share price that closed in the market on the same day.

Prior to the trading, CDH Bee Electric, which is based in the British Virgin Islands and is managed by Singapore's CDH Investment Advisory, owned 16.9 million of MWG shares.

After the sale, CDH Electric Bee still holds 13.7 million shares, equivalent to 12.84 per cent of the charter capital of MWG.

Mekong Enterprise Fund II is another large foreign investor which owns 14.32 per cent of MWG shares.

The MWG Corporation reported an after-tax profit of VND488 billion ($23 million) and consolidated revenue of more than VND10.9 trillion ($519 million) in the first nine months of 2014.

Initially, MWG was listed on the HCM City Stock Exchange at VND68,000 (US$3.2) per share on July 14, 2014. Yesterday, each share was priced at VND101,000 ($4.8).

First Vietnamese shrimp farm meets sustainability standards

Vietnamese shrimp exporter Quoc Viet in the southern province of Ca Mau has become the first company in Asia to receive an Aquaculture Stewardship Council (ASC) certification.

Twenty-two hectares of the company's shrimp ponds have met ASC's environmental and social standards.

One of Vietnam's biggest shrimp exporters, the company has made major efforts in recent years to meet ASC's standards.

Founded in 1996, the company aims to produce 20,000 tonnes of shrimp this year and up to 25,000 tonnes next year to supply customers in the US, Japan, EU, Australia, Canada and the Republic of Korea.

The World Wide Fund for Nature (WWF) Vietnam, in cooperation with the Sustainable Trade Initiative (IDH), has been working with Quoc Viet and other companies to help them achieve ASC certification.

The participating companies also source shrimp from local small-scale farms that are seeking ASC certification in the future. Three more farms covering 150 hectares are expected to receive ASC certification by the end of this year.

WWF will continue to support four additional companies and four small-scale farmer groups to achieve ASC certification.

Vietnam is the third biggest exporter worldwide of farmed shrimp, with around 90 per cent of its total volume exported globally.

"With ASC certification, the farms can gain access to the international market and, in particular, European countries that demand responsibly produced and certified products," said Esther Luiten, ASC's commercial marketing manager.

Thirteen shrimp farms from Vietnam and Ecuador have taken part in the ASC Shrimp Standard programme.

Through ASC certification, shrimp farms aim to reduce adverse impact on the environment and local communities by preserving wetlands and mangroves; address the transfer of viruses, and reduce disease; bring clean water and ensure the sustainable use of water; ensure the responsible use of feed; and address biodiversity issues.

WWF helps small-scale farmers and producers meet ASC standards through its aquaculture improvement projects, by helping them improve their operations and capacity.

After farms meet the ASC standards, WWF links them to companies in the market that value ASC certification.

The Dutch-based Sustainable Trade Initiative established the Farmers in Transition (FIT) fund, a co-funding programme aimed at upscaling the production of responsibly farmed shrimp, tilapia and pangasius.

The programme partners - retail, food service and supply chain companies - have helped producers improve farming practices and have actively engaged governments, industry and other stakeholders in the producers' respective countries.

One-stop-shop model to be applied at international seaports

The national steering committee of the ASEAN one-stop-shop (OSS) mechanism launched a project to create national single windows (NSW) at international seaports.

A single window allows trading partners to declare imports/exports when transiting to and from their respective countries at only one service point.

Deputy Prime Minister Vu Van Ninh highlighted the significance of the project, which comes at a time when Vietnam is becoming increasingly integrated into the world and securing trade ties with approximately 220 nations and territories.

The adoption of NSW sets the scene for Vietnam to become one of the region’s leaders in terms of reforming and simplifying administrative procedures for import-export products, entrance and exit, and transit.

Eight different ministries and sectors are involved in the procedure. They are expected to join the system and promote Vietnam’s prompt connection to the ASEAN Single Window (ASW) mechanism.

The system will initially be applied at seaports in Hai Phong, Ho Chi Minh City, and Ba Ria-Vung Tau.

Mekong Delta sees rise in rice output

Total rice output in the Mekong Delta this year is estimated to be 500,000 tonnes higher against last year, due to farmers taking action after agriculture officials urged them to use high-quality, high-yield varieties that are disease-resistant and mature within 85 to 95 days.

The total rice output in the Delta for the year is expected to be 25.5 million tonnes, accounting for 56 percent of the country's total output, according to the Southwest Region Steering Committee.

Nguyen Phong Quang, deputy head of the committee, said local officials and farmers have been closely monitoring rice fields for disease and using proper farming techniques.

In the Mekong Delta, more than 470,000ha of the total 732,000ha of the autumn-winter rice crop has been harvested, according to the steering committee.

The harvested area has had an average yield of five tonnes per hectare, up 100 kilos against the previous autumn-winter crop.

Rice on the remaining area is growing well, and the total output for the autumn-winter crop is expected to be 3.7 million tonnes.

In general, farmers have had good harvests and received good prices for their autumn-winter crops.

Vo Van Ut Em, who planted one hectare of rice in Cang Long District in TraVinh Province, said: "When the harvest was near, many traders came to rice fields and deposited money to buy paddy in advance."

Em said his family have earned a profit of 16 million VND (760 USD) per hectare.

Tra Vinh farmers have harvested more than 10,500ha out of 86,850ha of autumn-winter crop, but rice diseases caused by brown plant hoppers and other pests have affected more than 3,300ha.

Some farmers in the southern region who have completed their harvesting of the autumn-winter crop have begun sowing fields for the 2014-15 winter-spring rice crop.

The southern region plans to cultivate a total of 1.6 million hectares of rice for the winter-spring crop. Of that amount, 1.5 million hectares are in the Mekong Delta.-

Consumers optimistic about economic outlook

Vietnam’s Consumer Confidence Index jumped three points to 102, the highest level since late 2010, according to the assessment of Q3, 2014 by Nielsen Global Survey of Consumer Confidence and Spending Intentions.

Country Manager of Nielsen Vietnam, Vaughan Ryan said that the climb of consumer index in Q3 has shown that consumers have shared a positive outlook for the future in spite of difficulties over the past 18 months.

Consumers are willing to spend their spare cash on vacations, new clothes, latest technological products and household utensils.  This is a positive sign for the economy in the remaining months of the year.

However, in general Vietnamese consumers still have a cautious approach when it comes to spending. According to the survey, as many as 7 out of 10 consumers in Vietnam spend their spare cash on savings after meeting all essential living costs.

The Consumer Confidence index is made on a 100-point scale.

Southeast Asia is in the top five most optimistic region globally with Indonesia ranking second with 125 points, followed by the Philippines with 115 points.

Vietnam moves to promote agricultural exports to Mexico

The Vietnamese commercial counsellor in Mexico had a number of meetings with local officials and entrepreneurs over the past few days to seek ways to help Vietnamese agricultural products make further inroads into the Latin American market.

During a dialogue on the agricultural and aquacultural trade in Mexico’s northern city of Nuevo Laredo on November 14, Commercial Counsellor Hoang Tuan Viet said Vietnam’s key exports to Mexico included rice, pepper, coffee and basa fish, adding that the Southeast Asian country is the fourth largest rice exporter to Mexico in 2013, after the US, India, and Uruguay.

He also briefed local officials and entrepreneurs on the Vietnamese market and import and export businesses.

Meeting with Arturo Calderon Ruanova, General Director of Inspection at Mexico’s National Service for Plant, Animal, and Food Safety on the sidelines of the dialogue, the counsellor suggested the two countries negotiate a bilateral agreement on animal and plant quarantine, and accept customs clearance procedures by electronic quarantine certification so as to enhance Vietnam’s agricultural products on the Mexican market.

Earlier, Viet attended a working session with representatives of the Mexican Ministry of Economy in Laredo city and surveyed a number of trade centres.

He also met with the local businesses Grupo Serval, Alcex International, and Inportaciones RAM-DAM, which said they are keen to to import agricultural machinery and spare parts, trucks, motorcycles, agricultural products, and textile and garments from Vietnam.

Mexico is Vietnam’s second biggest Latin American importer, after Brazil. Two-way trade topped 1.5 billion USD in recent years.

VietinBank’s building under construction in Laos

Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) started the construction of its building in Vientiane, Laos on November 15.

At the ground-breaking ceremony with the participation of high-ranking officials from Laos and Vietnam, Nguyen Van Du, VietinBank Deputy Director General, said the nine-storey building will be constructed on 18,522sq.m at a cost of US$25 million and expected to complete in 36 months. He thanked the Lao Government and relevant agencies for their support for the effective operation of VietinBank branch in recent times.

By the end of the third quarter of this year, the branch had total assets worth US$108 million.

Du hoped that VietinBank will promote its technological and financial strength to contribute to Laos’ development and enhancing investment cooperation between the two countries.

On behalf of Vientiane Authorities, Governor Sinlavong Khoutphay Thoune appreciated VietinBank construction of a large and modern building in the capital city. It shows VietinBank strength and its determination to expand operation in Laos, he said.

Workshop explores Vietnam-Japan cooperation potential in agriculture

The agricultural sectors of Vietnam and Japan can complement each other well and thus there is a great potential for investment cooperation in this field, experts said a workshop in Ho Chi Minh City on November 15.

Speaking at the event, Nguyen Trung Dung, Minister-Counselor at the Vietnamese Embassy in Japan, said that Vietnam is an agriculture-based country with abundant natural resources and young labour force, while Japan holds the advantage in advanced agricultural technologies.

Therefore, the two countries can coordinate closely to boost farming cooperation for mutual benefit, he noted.

Yasuzumi Hirotaka, Managing Director of the Japan External Trade Organisation (JETRO) in Ho Chi Minh City, agreed that there are favourable conditions for the two countries to increase collaboration in this field as Japan has a great demand for farm produce and seafood from Vietnam.

He added that the question is how to create suitable standards to win mutual trust on product quality.

He also suggested Vietnamese authorities and businesses work together to increase the quality of Vietnamese products in order to meet the requirements of the choosy Japanese market.

At the event, participants exchanged views on how to increase the quality of Vietnamese products and to have successful collaboration with Japanese partners in this field.

The workshop was jointly held by Vietnam’s Tuoi Tre Newspaper and the Mainichi Shimbun Newspaper of Japan.

Vietnamese artisans participate in int’l trade fair in India

Vietnamese artisan Nguyen Van Tinh and his son Nguyen Phuong Quang are showcasing traditional bamboo handicrafts at the 34th India International Trade Fair which commenced in New Delhi on November 14.

Tinh, Technical Director of Viet Quang Ltd Co. in Hanoi, said he was granted the titles “artisan” in 2009 and “meritorious artisan” in 2013 by the President. His son Quang was honoured as an “artisan” in 2012 and is currently the youngest artisan in Hanoi in this field.

According to Tinh, 60 percent of his company’s products are exported, with the remainder sold on the domestic market. Key importers from Japan and China are particularly interested in the products due to their high quality and beautiful designs.

This is the first time Tinh has attended such an event in India, with the hope of finding opportunities to export his handicrafts to the world’s second most populous nation.

 300 firms to participate in Vietbuild Hanoi 2014

Around 300 domestic and international companies will take part in the International Vietbuild Hanoi Exhibition 2014, which is scheduled for November 19-23 at the Vietnam Exhibition and Fair Centre, said Dang Kim Giao, head of the Ministry of Construction’s Information Centre.

The exhibition, which focuses on real estate, interior decoration, construction and construction material, is expected to see the participation of 10 real estate companies introducing 20 projects, Giao said at a press conference in Hanoi on November 14.

As many as 1,170 booths at the event will showcase new and diverse products and services in the field, along with a series of interesting events, he said.

Vietbuild Hanoi 2014 is a chance for businesses to network and explore customers’ demand, thus finetuning their business strategy, stated Giao.

Businesses participating in the event can also compete for the “impressive and beautiful pavillion” award, which aims to inspire businesses to show off new products and technology, he added.

State Bank tightens rules for online foreign currency transactions

Financial institutions have to report international online transactions worth more than 1,000 USD, or the equivalent in other currencies, to the State Bank of Vietnam's (SBV) Anti-money Laundering Department.

They are also required to report local transactions worth more than 500 million VND (23,810 USD), or the equivalent in other currencies, to the department.

The regulations are part of SBV's Circular No 31/2014/TT-NHNN on amendments and additions to Circular No 35 on anti-money laundering measures.

Financial institutions have not been asked to report transactions done among institutions or done through credit cards, debit cards and prepaid cards.

However, they are responsible for collecting all information about individuals and organisations doing local money transactions. The institutions also have to increase the monitoring of individuals who are highly likely to engage in money-laundering activities, and gather information about their average income in the last three months.

In addition, the institutions have to collect information about the total revenues of suspect organisations in the last two years, and of the lists of members in their board of directors and legal representatives. The new circular, issued on November 11, will come into effect on December 26.

Economic, industrial zones attract investment flow

Industrial and economic zones have not only played a major role in attracting domestic and foreign investment capital but also significantly contributed to the country’s socio-economic development, the Vietnam Economic News reported.

As of September 2014, Vietnam had 295 established industrial zones, including 207 operational industrial zones with an average occupancy rate of 65 percent. In addition, the country also had 15 economic zones.

To date, industrial and economic zones have attracted 5,591 FDI projects with total registered capital of 118.1 billion USD, accounting for 49 percent of total FDI capital in Vietnam. In the first nine months of this year, industrial and economic zones attracted more than 600 FDI projects with total registered capital of 7.8 billion USD, accounting for 70 percent of total FDI capital in Vietnam.

Domestic investment in industrial and economic zones in recent years has also increased. Statistics showed that industrial and economic zones had attracted more than 512.028 trillion VND, accounting for more than 50 percent of total domestic investment capital. In the first nine months of this year, industrial and economic zones attracted 75.074 trillion VND, an increase of 16 percent compared to the same period last year.

According to the Ministry of Planning and Investment, thanks to attractive incentives for investment projects, in the coming time, investment capital in industrial and economic zones is expected to increase.

Tran Duy Dong, Director of the Economic Zone Management Department under the Ministry of Planning and Investment, was quoted as saying that industrial and economic zones had played a major role in the country’s socio-economic development. These zones have contributed 25 percent to the index of industrial production and accounted for more than 20 percent of Vietnam’s export value. In addition, these zones have created jobs for more than 2.3 million employees and this figure is expected to increase in the coming time.

Industrial and economic zones have recorded strong growth in business and production activities in the beginning months of this year. Total revenues of enterprises in industrial and economic zones reached over 55.7 billion USD. Export turnover stood at more than 35.7 billion USD. Meanwhile, import turnover totalled 34.7 billion USD. In the first nine months of this year, industrial and economic zones contributed more than 42 trillion VND to the state budget.

Vietnam urged to focus on German market

Vietnam and the EU are speeding up negotiations for a Free Trade Agreement (FTA), which offers a great opportunity for Vietnamese businesses to break into the German market, Deputy Minister of Industry and Trade Tran Tuan Anh recently said.

However, Anh cautioned, that Vietnamese business enterprises need to step up their game and attach higher importance to product quality if they expect to be competitive in the vibrant German market and make any significant headway into it.

Anh said that subsequent to the FTA, product quality would become the key factor for competition as Germany is well-known for being a high demanding market where quality is put on a pedestal and reigns.

Anh urged businesses to study the German market, adjust their business strategies and pay particularly special attention to developing innovative designs and filing for trademark protection in the market.

Germany has become Vietnam’s largest trade partner within the EU bloc with two-way trade turnover having increased on average by 15% per year, according to the Import-Export Department under the MoIT.

In the first ten months of this year alone, the two-way trade turnover reached US$6.47 billion. The country’s key exports to the market were telephones and components, garments and textiles, computers, electronics, seafood, bags, suitcases and caps.

Experts, however, said Vietnamese exports have comprised just 0.2% of the German market’s demand, which would open up bright prospects and ample opportunities for Vietnamese goods to pierce the market.

In addition, signed important agreements have laid a solid foundation for strengthening bilateral trade and economic ties in the future.

At present, more than 125,000 Vietnamese people have also chosen to reside in Germany, offering a good opportunity for businesses to find a niche in the market and cater to their demand for goods and services.

Finance Ministry improves anti-corruption work

The Auditor General of the Audit State Office of Vietnam, Nguyen Huu Van said on November 13 that the Finance Ministry has made remarkable progress in the prevention and fight corruption.

The Auditor General, a member of the Central Steering Committee for Anti-Corruption, was the head of a working team tasked with conducting supervision of anti-corruption work at the Finance Ministry.

Following the inspection, the working team concluded that positive changes were seen at the ministry, particularly in measures to prevent and curb corruption.

The ministry has made administrative procedure reform one of its key tasks, with top priority given to streamlining procedures, tax filing and payment are made more simple, thus improving national competitiveness and better preventing corruption.

The management of personnel work has been tightened with a view to making the process of recruitment and official appointment more transparent and democratic, while inspections are increased to timely detect any signs of corruptive acts.

The ministry has also tried hard to promote transparency in all its operations, particularly in sensitive areas such as budget estimates and balance, public debt data, inspections and supervision.

Internal inspection work has been enhanced, which uncovered 23 cases of corruption, while another four cases were brought to light through processing the public’s complaints.

The working team also pointed out outstanding weaknesses and shortcomings for the ministry to promptly overcome.

They recommended the ministry to continue with its good work, while reviewing existing regulations in financial areas to detect any gaps or mistakes that can facilitate corruption.

Filipino businesses keen on VN's attractive investment climate

Vietnam is one of the most attractive investment destinations for Filipino businesses, according to the Malaya Business Insights, an online economic policy analysis site.

Since the mid-70s after being ravaged by war, Vietnam has come a long way, holding a number of comparative advantages and boasting an attractive investment climate. In September 2014, operational FDI stood at 8.9 billion USD, with 12.9 billion USD slated for the entire year of 2014, an increase of 8.7% compared to 2013. Investors came from over a hundred countries and territories, including some of the world’s leading transnational corporations. The figures show that Vietnam is now a destination of choice for foreign investors, even in the face of the present global economic slump.

During the first ten months of 2014, the securities market registered an impressive recovery of 20% compared to 2013; Viet Nam’s GDP growth rate increased by 5.62% during the first 9 months of 2014, while inflation crept up by 4.61% compared to 2013, the lowest rate in 12 years. These achievements have aroused the interest of foreign investors, leading government authorities to encourage FDI.　

The publication lists a number of factors that have determined Vietnam’s economic success so far: political stability, an abundant workforce, a comprehensive international integration framework, and wide-reaching reform policies.

Vietnam’s political situation has been stable for a number of years now, which has earned the country the title of being one of the most dynamic economies. Economic growth from 1991 to 2010 averaged 7.5% annually, despite the global financial crisis of 2011-2013.

The country boasts an abundance of Human Resources, with over 60% of its population being of working age. Additionally, Vietnam’s geographical location at the heart of East Asia, home to a number of large and vibrant economies, is a huge advantage.

The country joined the World Trade Organization in 2007 and is an active party to multiple frameworks of international economic integration, including a number of free trade agreements with partners both within and outside the region. Vietnam is also part of the Trans-Pacific Partnership negotiations. These factors are sure to attract more investors to Vietnam, according to the publication..

In an attempt to secure more foreign investment, Vietnam is undertaking efforts to improve its investment climate. Before the open policy of 1986, Vietnam was a centralised economy. Since opening the market to foreign investors, Vietnam has become a socialist-oriented market economy.

The Government has made a number of positive changes in order to keep up with the changing global business environment. In Vietnam, foreign and domestic investors are treated fairly under the Law on Investment, which is one of the reasons why the United Nations Conference on Trade and Development (UNCTAD, 2011) ranked Vietnam amongst the fifteen most attractive economies for foreign investors.

According to the article, Vietnam will continue to be an attractive investment site, not just for Filipino businesses, but the rest of ASEAN. The country is particularly keen to boost investments in ICT, mining, tourism, manufacturing, education and infrastructure, including energy.-

Viettel elevates image in African market

Viettel Group was amongst the 375 most influential names and 9,000 exhibitors who attended Africa’s leading telecom, media and ICT industry trade show – AfricaCom 2014 – on November 11-13 in Cape Town, South Africa.

During the three-day exhibition, Viettel’s experts competed head-on against famous brands such as Cisco, Ericsson, Alcatel and Huawei, touting the company’s latest products and triumphs to the thousands of international friends and partners attending the event.

Viettel has established a remarkably good image in African nations as a quality service provider that has invested heavily in the local market said Nguyen Hoang Long, Director of Viettel Telecommunications Network Equipment Manufacturer (Viettel Core) under Viettel Group, adding that he hoped the event would serve to cement the company’s image in the market.

The group would continue to strive to bring quality, timely and economical services to African consumers in the coming time, Long affirmed.

Bac Giang boosts links in selling processed vegetables

The Chairman of the People’s Committee of northern Bac Giang province has asked the Department of Agriculture and Rural Development to work with local authorities and businesses to enhance collaboration in processing vegetables and selling processed products.

The province will set up a steering board on developing safe and processed vegetable production, he said, adding that the relevant agencies will review localities’ production plans and propose suitable vegetable varieties, especially in areas specialising in growing plants for processing and export.

At the same time, they should work to complete production processes for each vegetable and develop joint venture models that facilitate product selling and increase businesses’ responsibility for farmers.

Local enterprises also need to build their own plans and orientations in producing, processing and selling agricultural products in order to develop stable material areas serving their demands, he added.

Domestic car sales on the rise

Falling petrol prices, longer financing arrangements and rising consumer confidence are pushing Vietnamese car buyers towards bigger and more expensive cars.

Offering fresh evidence of a sustained rebound in the Vietnamese automotive industry, most major manufacturers saw multi-year highs or all-time highs in sales volume last month, according to figures from the manufacturers which were released on November 13.

Last month, the country's 18 leading vehicle manufacturers sold a combined total of 14,938 units, a 45-percent year-on-year increase, according to the Vietnam Automobile Manufacturers Association (VAMA).

Of this figure, cars made up 9,220 units and trucks, 5,718 units. The VAMA data includes SUVs, passenger cars and commercial vehicles.

"This is the 19th consecutive month that industry volume has been higher than that of the same period last year," VAMA chairman Jesus Metelo Arias said in a statement released on November 13.

Meanwhile, sales from January to October increased by 40 percent year-on-year to 121,648 units. Of these, cars made up 77,150 units, a four-percent increase year-on-year, and trucks, 44,498 units, a 38-percent year-on-year increase.

"Lower fuel prices are partly responsible for the continued strength of auto sales," said Luong Dinh Hung, General Director of ASC Group, a prominent car dealer in Vietnam.

Hung cited additional factors contributing to strong demand such as longer financing arrangements, increased consumer confidence and continued pent-up demand, as consumers replaced old vehicles with new ones.

Last week, the prices of RON 92 and RON 95 gasoline were cut by 950 VND (4.5 US cents) to 21,390 VND (1.007 USD) and 21,990 VND (1.047 USD) per litre, respectively.

This is the ninth time petrol prices were reduced and the 14th time the prices were adjusted this year. As a result, current petrol prices are equivalent to those in 2012.

Also, a large number of vehicles that will become obsolete this year also helped trigger demand, as the Government required the removal of trucks more than 25 years old and cars more than 20 years old from the country's roads.

According to the Vietnam Register, a total of 3,388 cars, 13,033 trucks and 67 buses will be taken off the roads this year.

A brighter economic outlook also helped to improve consumer sentiment, as Vietnam's economic growth rate in 2014 was set at 5.8 per cent and CPI growth at less than seven percent.

The Ministry of Planning and Investment, which set the growth rate, also predicts the country's gross domestic product growth to reach 5.8 percent or even higher this year.

"Dealers are welcoming a consistent flow of shoppers into their showrooms, and the pace will likely remain steady through the end of the year," said Do Ngoc Quang, a car analyst, adding that "the industry is poised for a very busy holiday season."

From January to October, the country imported 51,000 cars worth 1.1 billion USD, a 76-percent increase in quantity and 93-percent increase in value year-on-year, according to the General Office of Statistics.

The figures nearly doubled those of 2013 and registered the highest level in the last five years.

Vietnam, which has a population of more than 90 million, has around two million cars and 37 million motorcycles.

Shrimp exports to the US skyrocket

Vietnam shrimp exports are forecast to reach US$3.8 billion this year, nearly one billion higher than last year on the back of rising exports to the US market, reports the Ministry of Agriculture and Rural Development (MARD).

In the first ten months of the year, Vietnamese shrimp exporters have grossed US$3.25 billion in revenue, up 42.3% over a year earlier.

The Vietnam Association of Seafood Exporters and Producers (VASEP) in turn has announced the US is now the largest importer of shrimp followed by Japan and the EU.

Shrimp exports to the Republic of Korea and Australia are also up 84.4% and 32.7%, respectively.

Minister Cao Duc Phat suggests that seafood businesses continue to research markets and seek new markets, while relevant agencies help businesses remove technical barriers to bolster exports.

Da Nang vows best conditions for enterprises

The central city of Da Nang pledges to continue strong reforms and create the most favourable conditions for businesses and investors with a view to turning itself into a modern, dynamic and creative destination in Vietnam.

Vice Chairman of the municipal People’s Committee Nguyen Ngoc Tuan made the affirmation at a November 13 ceremony launching a project to improve the capacity of Da Nang small- and medium-sized enterprises (SMEs) in accessing information on land, construction and business registration.

This is one of the 19 projects honoured at the 2014 Vietnam Anti-Corruption Initiative Progarmme (VACI 2014) co-hosted by the World Bank and the Government Inspectorate.

The project reflects the local authorities’ determination to facilitate businesses’ information access and contributes to improving transparency and the investment environment, he said.

It also targets the sustainability of the city’s leading place in the National Provincial Competitiveness Index (PCI) rankings and the implementation of activities during the “Da Nang Business Year 2014”.

According to Tuan, during the one-year project, there will be training courses and seminars on communication skills and the building of a code of conduct among businesses along with activities connecting enterprises and State agencies.

Once it ends in October 2015, 70 percent of businesses will grasp ways to access information sources and corporate support services, he said.

The city will form a network of officials in charge to provide information for enterprises on fields of their concern, creating a close link between them and State agencies, he added.

Public debt remains within limit: deputy minister

Vietnam’s public debt remains within the limit approved by the National Assembly, Deputy Minister of Planning and Investment Dao Quang Thu has said.

Thu made the affirmation during a workshop organised by the Ministry of Planning and Investment in Hanoi on November 13, which focused on the project “Defining the limit of public debt and safe public debt ceiling of Vietnam in the 2014-2020 period”.

Thu said the project aims to clarify theoretical and practical issues on the issue, the determination of public debt, the limit and ceiling of public debt, and international experience in the field, thus proposing measures to perfect the country’s public debt policy.

According to a report released by the Ministry’s Policy and Development Academy (PDA), public debt and the risk of public debt crisis is a burning economic issue in many countries and regions worldwide.

In Vietnam , this issue has been paid special attention by the National Assembly, Government and researchers. However, there remain different opinions in determining the country’s safe limit of public debt.

Vietnam needs to take steps suitable for the country’s political and economic institutions to prevent unwanted impacts of public debt on the national economy, said Dao Van Hung, Director of the academy.

According to international practice, public debt safety criteria are defined based on key elements such as the quality and risk of public debt, its impact on the macro economy, the efficiency of development investment capital use and national trust index.

The Government recently noted that public debt has increased rapidly, from 51.7 percent of the GDP in 2010 to 60.3 percent at the end of this year.

However, the rate is still within the acceptable level in line with the National Assembly’s resolution, the Government affirmed.

The Government is resolved to keep strict control of public debt, particularly new loans, to ensure the debt ratio is within the permitted level while tightening the monitoring and inspection of the use of capital from this source.

At the same time, the Government will take urgent measures to restructure public debt in the direction of raising the ratio of long-term, low-interest borrowing.

The Government’s resolution also instructed the Government Inspectorate to coordinate with other ministries, agencies and local governments to timely deal with complaints and petitions, particularly those involving a large number of people and having been delayed for a long time.

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