Conference talks up recovery

After four years struggling with difficulties, last year saw an improvement in the real estate market. Many challenges still remain but the market is opening up with many new opportunities for buyers, investors and developers.

Recent project launches have been crowded with potential homebuyers

Attendees  at a seminar held by the Vietnam Real Estate Association last week in Ho Chi Minh City claimed there were substantial amounts of investment entering the market.

According to Deputy Minister of Construction Nguyen Tran Nam, the real estate market has been in clear recovery since last year, and there were several pointers to this being the case. Firstly, the number of transactions increased continuously in the last eight quarters. This helped drastically reduce housing inventories.

Secondly, Nam said, banking sector finance available to real estate had increased.

Thirdly, the stimulus package of VND30 trillion ($1.4 billion) experienced  positive levels of disbursement. As of January this year, more than VND10 trillion ($476 million) had been disbursed. With the participation of 15 commercial banks and supportive regulations from the government, more than 12,000 people had received mortgages.

Nam added that to revitalize the real estate market, the State Bank of Vietnam was co-ordinating with ministries and bodies to implement another stimulus package valued at VND50 trillion ($2.38 billion). The new package would act as a subsidy to the commercial housing sector, rather than the previous package that centred on a much needed low-income housing segment.

“Apparently, the implementation of the new laws such as Real Estate Business and Housing laws from July 2015 and a range of other related regulations will help the market,” Nam confirmed.

A majority of the participants at the seminar believed the real estate market had made significant steps towards a recovery last year. But they also cautioned about being overly-optimistic.

Le Chi Hieu, general director of Thu Duc House Company said that the development of the Vietnamese real estate market depended much on the micro economy and government regulations.

‘The real estate sector received a lot of attention from the government last year, in addition to resolving large housing inventories, bad debt and the restructuring of the economy,’ Hieu said.

He also emphasised that many developers were to blame for the overly-large stockpiles seen in the past as they had not focused on market segments such as low-income owners that had huge demand for housing and instead had wasted finance on constructing supposedly luxury developments in which there was little interest.

“The real estate market is going to continue to be ruthlessly selective. Incapable developers who lack capital, management skills and behave unprofessionally will be purged,’ Hieu said.

Doctor Le Xuan Nghia said interest rates, the global oil price and foreign currency exchange rates will affect the real estate market.

“We still have to also be aware that the problem of bad debts remains and does affect the market, particularly when it comes to M&As,” Nghia said.

The development of the real estate market is also closely related to the credit market. The government has planned to issue a large number of mid and long term bonds. Meanwhile commercial banks now hold a large amount of government bonds, therefore if they want to increase their credit they have to release their government bonds. This would mean bank interest rates could increase because higher interest rates would have an impact on developers who had attempted to turn their businesses around after a long period of suffering losses, said Nghia.

“The government should be very careful and map out suitable solutions to ease interest rates down otherwise both the real estate market and the wider economy could suffer,’ Nghia said.

Homebuyers need guidelines for potential VND50 trillion package

A VND50 trillion (US$2.38 billion) package to assist commercial housing developments may spell good news for the property market, but experts say authorities should prioritise showing homebuyers how to apply.

A VND50 trillion package to assist commercial housing developments may spell good news for the property market.- Photo danviet.vn

Deputy Minister of Construction Nguyen Tran Nam told a conference in HCM City on January 30 that the construction ministry and the State Bank of Viet Nam (SBV) were jointly studying the package, which is likely to be disbursed within 10 years with an annual interest rate of seven per cent.

HCM City Real Estate Association Chairman Le Hoang Chau said he is glad to be waiting for a response from the SBV. "This is truly necessary and suitable for the practice of real estate market development," he told the Phap luat Thanh pho Ho Chi Minh (HCM City Law) newspaper.

Chau noted that property firms are in dire need of stable finances to calculate loan costs for operational cycles amounting to at least three to five years. They are currently unable to do this with short-term loans.

Seven per cent will also be "a dreamy interest rate" for property enterprises, which are now subject to annual rates of between 10 per cent and 12 per cent, he added.

Can Van Luc, a senior advisor at the Bank for Investment and Development of Viet Nam, told the newspaper that the authorities were only calling for lenders to offer the VND50 trillion but had not made it mandatory.

Eximbank Deputy General Director Tran Tan Loc and Vietinbank General Director Le Duc Tho have reportedly said that these banks were considering taking part in the programme.

However, many people have raised doubts about the ability of commercial banks to raise money for these long-term loans with the intended interest rates when they are mostly offering preferential loans with rates of between seven per cent and nine per cent and with loan terms of less than two years, according to Luc.

"We need to develop the securities and bonds market to mobilise medium- to long-term capital for banks and enterprises," he said.

Thanh Yen Land General Director Nguyen Duy Minh claimed that both enterprises and homebuyers expect legal documents to be issued, providing detailed guidelines on how to obtain the financial support. The market needs a capital source that is truly accessible, not "spiritual therapy," he added.

According to Chau, many experts suppose that the VND50 trillion package should be offered with a term of 20 years and an interest rate of five per cent to ensure debt settlement ability for the public.

Chau noted that the package is intended to favour property investors, but the real estate market needs funds to be allocated to homebuyers for stable and sustained development. Low- and average-income citizens should be prioritised within the scope of this programme, he noted.

Thuy Lai, a cloth trader in HCM City's Tan Binh market, told the newspaper that many small dealers with monthly incomes of VND15 million to VND20 million ($714 to $952) wish to buy houses. But it will be hard for them to legally prove their income status, which is required for obtaining a housing loan.

"Local administrative procedures for certification are complicated," she pointed out.

A national property bailout package worth VND30 trillion ($1.43 billion) has been implemented for two years in support of social-housing developments. As part of this programme, loans have been offered to homebuyers with annual interest rates of six per cent in 2013 and five per cent in 2014.

Tilapia offers untapped potential for exports

Vietnam’s tilapia exports to foreign markets have enjoyed strong growth over recent years steadily increasing from an export volume of just US$1.95 million in 2004 to more than US$32.2 million in 2014.

Last year, the total area of tilapia aquaculture at ponds and lakes nationwide spanned 15,992 hectares with total output spiking up over 25% to 125,000 tonnes compared against the prior year.

Tilapia now has become a key aquatic product for consumers in both the domestic and foreign markets. Last year, Vietnam exported tilapia to more than 60 nations around the globe.

The top ten import markets of Vietnam’s tilapia included the US, UKSpain, Columbia,  the Netherlands, Belgium, Germany, Mexico, , Czech Republic and Italy.

The US remained the key market for tilapia at 1.745 tonnes valued at US$5.241 million, accounting for 18.2% of the country’s total market share, trailed by Spain and Colombia.

However, Vietnam’s tilapia exports have remained relatively low in relation to their potential, according to the Directorate of Fisheries.

Ten years ago, the Ministry of Agriculture and Rural Development (MARD) began implementing a project to develop tilapia as a key aquatic export. However, tilapia output has not expanded as anticipated and hasn’t kept pace with domestic demand. Moreover international marketing efforts have been stagnate as the industry, fraught with raw material shortages and lack of investment funds, simply isn’t in any position to make or keep large foreign commitments

China and Taiwan have now become the world’s leading tilapia exporters with an export volume in excess of US$1.3 billion per year, buoyed by the export price of tilapia in the US market, which has been hovering at between US$3.8 and US$4.2 over the past year.

In Vietnam, with tra fish exports having encountered innumerable difficulties, the diversification of aquatic exports has become urgent. Especially, since tilapia has a great potential as a seafood export.

Many developing nations have considered tra fish an important source of protein in and it has been one of top ten seafood products in the US market, just after shrimp and salmon.

The MARD has now forecasted that tilapia exports could reach 21,000 hectares with an output of 140,000 tonnes including 50,000 tonnes for exports in 2015.

Apart from tra fish and shrimp exports, Vietnam has been striving to transform tilapia into one of its key exports with an output reaching 150,000 tonnes and export value of US$200 million-US$300 million by 2020.

French firms updated with Vietnam’s economic reforms

On February 10, the Vietnam Embassy in France and the French Institute of International Relations (IFRI) co-hosted a seminar on Vietnam’s  

economic reforms and the role of new strategic partners.

The event is designed to highlight Vietnam’s achievements in various fields during the international economic integration in recent years,  

introduce the underway reforms by the Vietnam Government to help take advantage of the country's economic advantages and opportunities in  

order to overcome challenges in regional and global connectivity.

Speaking at the seminar, the Vietnam Embassy’s Trade Counsellor Nguyen Canh Cuong said the purpose of the workshop is to update  

information to help scholars, officials and French entrepreneurs raise awareness about recent economic reforms in Vietnam, and new regulations  

in the Investment Law, the Corporate Law, and especially the two important trade agreements Vietnam is actively engaging in negotiations- the  

Vietnam-EU Free Trade Agreement (EVFTA) and the Trans-Pacific Partnership (TPP) Agreement.

Prof. Dr. Nguyen Duc Khuong- a lecturer from IPAG Business School Paris reviewed the process of Vietnam’s international economic  

integration, introduced new policies being implemented by the Vietnam Government to cope with challenges and ensure sustainable growth.

Lawyer Oliver Massmann from Duane Morris Law Firm Vietnam LLC, in his report, gave a Vietnam’s overall economic picture with encouraging  results in 2014.

He also expressed his optimism about positive changes in Vietnam, notably the ongoing reforms which, he believes, will make great strides in  the future.

During the seminar, delegates raised questions concerning the underway reforms in such fields as industry, energy and banking and touched  upon opportunities foreign firms, including French businesses can fully utilize to accelerate investment cooperation.

Vietnam’s outward FDI: Is the tide turning?

As of the end of 2014 Vietnam has turned the tide on foreign direct investment (FDI), or at least it seems, with outward FDI approaching US$20 billion, according to the Foreign Investment Agency (FIA).

Although Vietnam’s cumulative outward FDI is still small compared to many countries around the globe, it is growing at a faster rate than most countries, particularly those in the Southeast Asian region.

It is being sent to all parts of the globe.  The top five countries in recent years have been Cambodia with 23 projects, Myanmar at 16, Laos at 13, the US at 12 and Singapore at 9.

In total Vietnam businesses have invested in a grand total of 109 projects in 28 nations, the FIA said, adding that in 2014 alone they committed to an additional US$1.047 billion in 109 projects and disbursed roughly the same amount.

As of the end of 2014 Vietnamese investors had disbursed total outward FDI of US$6 billion, which equates to 30.0% of the total of pledged outward FDI of US$20.00 billion.

In Cambodia and Myanmar investments were especially heavy in telecommunications, agriculture and forestry. The projects in other countries were primarily focused on the investors’ core business and included construction, transportation, real estate and manufacturing.

Leading the pact of Vietnamese investors were the Vietnam Oil and Gas Group, Song Da Corporation, Vietnam Rubber Group, Vietnam National Coal Mineral Industries Group and Viettel.

For 2015, the FIA has forecast outward FDI will grow to US$1.5-2 billion for which it estimates about US$1-1.2 billion will be disbursed.

SBV appoints new deputy governor

The State Bank of Viet Nam (SBV) now has a new deputy governor.

Following Prime Minister Nguyen Tan Dung's directive issued on Sunday, SBV Personnel Department Director Nguyen Kim Anh has been appointed to the position.

Anh was the deputy director of the Banking Academy before he headed up the personnel department in 2011. He is the sixth deputy governor of the management board to assume charge of the central bank.

Affordable housing in demand

More incentives are needed to encourage businesses to develop affordable housing and social housing projects, a HCM City official has said.

The official from the Housing Development and Real Estate Market Division under the Construction Department, who declined to be named, said there were insufficient incentives for enterprises to develop such housing.

He said the city should use public land to create a Social Housing Fund by calling on various sectors of society to invest in social housing, especially in resettlement housing projects.

The city should spend between 30 and 50 per cent from land-use money collected from commercial housing projects to fund the Social Housing Fund.

The city should also develop affordable house-leasing projects with an aim to change people's perception of house ownership.

Le Hoang Chau, chairman of the HCM City Real Estate Association, said the Government and the Construction Ministry needed to focus on a national programme to develop social housing for lease instead of for sale.

Chau said it was better to lease social housing instead of for sale because the price of many commercial housing projects was as low as social housing projects.

Chau said in order to encourage enterprises to invest in housing for lease projects, the Government should extend the payment of land use for enterprises.

This year the city plans to build eight million of square metres of housing, which will increase the average accommodation space to 17 square metres per person, according to the Construction Department.

In order to achieve the target, the city will continue to develop more social housing projects to meet rising demand.

At present social housing only meets one-third of the demand of the public.

This year, the city will complete 13 resettlement projects with more than 7,000 apartments and land lots with a total of more than 905,000sq.m.

The city will also develop five social housing projects with nearly 3,600 apartments, with a total area of 312,000sq.m.

In a related issue, the Construction Ministry said this year it would focus on social housing development.

Speaking at a recent meeting held in Ha Noi, Construction Minister Trinh Dinh Dung said the ministry had identified the real estate market as one of the priority sectors for 2015, and that it would continue to implement measures to tackle challenges facing the market.

According to the ministry, more than 100 social housing projects in key cities like Ha Noi and HCM City have been completed, including 38 projects with 19,680 apartments for low-income earners, and 64 housing projects with 20,270 apartments for workers.

Around 150 other projects are under construction, including 91 housing projects for poor people and 59 projects with 122,500 apartments for workers, the ministry said.

Gold prices remain stable ahead of Tet

Domestic gold prices are currently hovering at a low of VND35 million per tael, in contrast with previous years when people used to flock to jewellery stores ahead of Tet.

Gold trading companies said the gold market had remained stable at the year-end and had not been as heated as the previous years.

Representatives from Bao Tin Minh Chau said trading at the company during the year-end had remained normal and there had been no unexpected spikes in prices as seen in previous years.

SJC also said daily transactions at the company were only about 1,000 tael and that the fillip during the year-end was insignificant.

It added that this was much lower than the previous years when daily transactions touched 10,000 tael and the figure surged by 50 per cent to 15,000 tael by the year-end.

Industry insiders attributed the stability in the gold market to stability in the country's macro-economy and the State Bank of Viet Nam's success in managing the gold market.

Earlier, whenever the economy was unstable and inflation was high, people only trusted gold investments.

Now, they are seeking investments in securities and property, and feel that simply depositing money in banks could offer them good returns, so demand for gold has dropped sharply.

Nguyen Anh Hong, a bank employee in the capital, said she used to store gold as a hedge against inflation in the past. However, this year she turned to securities as she saw them as more attractive opportunities.

According to the latest report from the World Gold Council, Viet Nam's demand for gold declined sharply quarter-on-quarter by 27 per cent in volume and 29 per cent in value during the third quarter of 2014.

The country's registered gold consumption during the third quarter reached 19 tonnes, which is worth US$783 million. Of the total, gold jewellery accounted for two tonnes, worth $82 million, a 9 per cent decline, while gold bars and coins made up for 17 tonnes, worth $701 million, reflecting a 29 per cent decline.

The council ranked Viet Nam as the world's seventh largest gold consumer last year, with consumption pegged at 92.2 tonnes worth $4.16 billion, a 20 per cent year-on-year increase.

Yesterday, domestic gold prices remained unchanged against the previous day despite a fillip in the global market.

DOJI Co. yesterday listed one tael at VND35.23/35.27 million ($1,646/1,648), while the prices quoted by Phu Quy Co and SJC were VND35.24/35.27 million and VND35.19/35.29 million per tael, respectively.

Gold prices in the domestic market are still about VND3.3 million ($154.2) higher than the global prices.

Slow demand means hard year for rubber

With global rubber prices continuing to fall after a rout last year, things are expected to remain very difficult for the industry, the State-owned Viet Nam Rubber Group has warned.

With demand too not hot last year Viet Nam's exports fell by 0.7 per cent even as prices plummeted by 28 per cent, Tran Thoai, deputy general director of VRG, told a review meeting in HCM City yesterday.

The average price was around VND37.3 million (US$1,751) per tonne compared to VND51.8 million ($2,431) in 2013.

It is expected to fall to around VND31 million ($1,408), he said.

The group has urged its member companies to try and cut production costs to around VND30 million ($1,401 ) per tonne from the current VND36 million ($1,682).

Vo Sy Luc, VRG chairman, said the group planned to focus on producing rubber-based products with high global demand.

He called on member companies to research into intercropping other crops with rubber to increase income.

Speaking at the meeting, Minister of Agriculture and Rural Development Cao Duc Phat called on the group to restructure to increase value addition and ensure sustainable development.

"The country exports nearly $2 billion worth of raw rubber, and imports large quantities of rubber-based products at much higher cost, and this requires the industry to tweak its product structure," he said.

"With supply exceeding demand, the industry also needs to control rubber output and stimulate domestic demand besides slashing production costs."

The group has set itself a profit target of VND2.53 trillion ($118.7 million) and revenue target of VND20.92 trillion ($982.48 million), or just 87 per cent of last year's figure.

It is expected to grow rubber on 416,000ha this year, including several thousand hectares in Laos and Cambodia, an increase of more than 10,000ha from 2014.

Pension funds lack framework

Market participants urged authorities to complete a legal framework on pensions this year after the long-awaited circular on voluntary pension funds wasn't submitted to the Government as planned.

Viet Nam has a population of more than 90 million, nearly 70 per cent of whom are working age (between 15 and 64). As living standards in the country improve, people will be able to prepare and invest for retirement, making the development of pension funds necessary.

"In 2015, we believe market development will be more stable and this year could be a breakthrough for the fund management industry if voluntary pension funds are allowed to operate," said Tran Thanh Tan, president of the Fund Management Club, speaking to a State Securities Commission conference on securities market development.

Tan said that in the coming few years, and in the extended future, the development of the fund management industry would largely depend on the success of pension fund types. He said he expected the Ministry of Finance would soon submit a draft decree on the organisation and operation of voluntary pension funds to the Government.

Open-ended funds and exchange-traded funds (ETFs) have faced many difficulties. Because of this, it was necessary to launch voluntary pension funds to help the stock market diversify products, as well as make more room for the fund management industry to develop, Tan said.

Prime Minister Nguyen Tan Dung vowed that cumulative assets of voluntary pension funds would be reinvested in the economy, including in capital and securities markets, and that they would reach VND10 to 12 trillion (US$467 to 561 million) by 2020.

"The Ministry of Finance will submit a draft decree on the organisation and operation of voluntary pension funds to the Government in 2015, which sets out the legal framework for the implementation of this fund type," said Deputy Minister of Finance Tran Xuan Ha.

Ha said regulations overlapping with the Ministry of Labour, Invalids and Social Affairs (MOLISA) caused the delay. While the Ministry of Finance prepared the draft decree on voluntary pension funds, MOLISA was developing a policy on additional mandatory public pensions.

While the current payment of compulsory pension insurance was high it would be difficult to ask employees and employers to pay more, Ha said. Thus, the Government decided to expand multi-pillar pension funds with the development of voluntary pensions.

Mekong Delta predicts seafood export surge

The Cuu Long (Mekong) Delta provinces expect to export seafood and rice worth US$10.2 billion this year, according to the Can Tho Statistics Office.

The provinces reported $850 million worth of exports for seafood and rice in January alone.

The office estimates that to achieve this target, the region will have to produce 3.7 million tonnes of seafood to meet demand for raw material from 198 seafood processing factories in the region.

These provinces will also have to grow rice on a total land area of 4.2 million hectares, including 80 per cent of the total area growing high-quality rice products for export processing.

Meanwhile, the provinces will work to improve the quality of trade promotion programmes by lending support to enterprises for a market study, as well as conduct marketing and advertising activities in many export markets in Asia, Africa, Australia, the European Union (EU) and North America.

They have also paid attention to developing quality management according to international standards and updated global experiences in risk management for trading activities, along with coming up with specific financial solutions for exporters.

The provinces have implemented strong support programmes for the export rice industry, export credit guarantees, and undertaken the development and management of supply chain and value added services related to imports and exports to limit risk in external trade relations to a minimum level.

Loans worth VND56 trillion ($2.616 billion) in total have been taken for enterprises to boost investment for the renovation of technology, expansion of production scale and for changing the structure of export products to improve the competitive ability and add value, according to the office.

This measure is expected to increase export volume by 20 per cent for high-grade rice and 5 per cent for high-grade seafood this year, compared with last year.

Ca Mau Province, the largest exporter of seafood over the past 15 years, expects to touch $1.4 billion in export value this year, accounting for 19.4 per cent of the total seafood export value of the Cuu Long Delta region.

Last year, the Cuu Long Delta provinces reported a year-on-year increase of $700 million in export value of seafood and for rice to $8.9 billion.

They also promoted trade activities in Asian, European and North American countries, stepped up high-grade rice exports to Japan, the EU, the United States, Singapore and Australia, which are markets with strict technical barriers.

Viet Nam is likely to see a ‘barbell impact' from falling oil prices, ANZ Bank economists Eugenia Victorino and Glenn Maguire said in a recent report.

An engineer operates equipment at Dung Quat Oil Refinery in the central province of Quang Ngai. ANZ Bank experts state that the net impact of falling oil prices will be marginal for Viet Nam. - Photo news.zing.vn

The correction in international prices of oil has entered its seventh month, spelling a significant positive for most of the region. However, the economists said the net impact across trade and expenditure patterns will be marginal for Viet Nam, which is both an exporter of crude oil and an importer of refined products.

The country's oil consumption has risen sharply, posting a 7.5 per cent compound annual growth over the last two decades. This growth is the fastest in the region, overtaking China, and the dynamic has contributed to switching Viet Nam from a net oil producer to a net oil consumer since 2010.

"In light of the surge in electronics production over the last three years, we expect oil consumption to continue rising as total energy needs keep pace with demand for manufacturing growth," the experts predicted.

The price of Brent crude oil has pulled back by nearly 57 per cent since last July. ANZ expects Brent prices to average at US$48 per barrel in 2015, seeing a further downsizing risk during the first half of the year and rising up to $58 per barrel by December.

The economists concluded that the persistent decline in oil prices has exacerbated the already-soft price gains in non-food and non-oil items in the consumer price index basket.

They further said the effect on state finances is marginal as the decline in the subsidy bill is accompanied by a decline in export crude oil's tax revenues. The slide in oil prices has not placed the trade balance at risk as the share of oil-related trade has steadily declined since 2009.

In 2014, crude oil accounted for 5 per cent of Viet Nam's total exports, down from 10.8 per cent in 2009. Petroleum products now account for 4.9 per cent of the total import bill, down from 8.9 per cent, five years ago.

Last year, Viet Nam exported 9.2 million metric tonnes of crude oil and imported 8.4 million metric tonnes of petroleum products. It reached a narrow surplus of $95.7 million in oil-related external trade.

According to the BP Statistical Review of World Energy 2014, Viet Nam holds 0.3 per cent of the world's proved oil reserves estimated to be around 4.4 billion barrels. In the Asia Pacific region, the country has the highest reserve-to-production ratio at 34.5, overtaking traditional oil exporters, such as Brunei, Indonesia and Malaysia.

With Viet Nam's sole refinery Dung Quat producing around 100,000 barrels per day, it falls short of the average daily consumption of 378,000 barrels.

"Despite the prospect of a new normal in low oil prices, we see the need for more investment in downstream projects. Consequently, exports of crude oil should decline to support local consumption," the economists stated.

Goodyear to expand its Autocare network in Hanoi

Goodyear Vietnam has expanded its tire care service center network in the north with the opening of Autocare Thanh Phat at 27 Thuong Dinh in Hanoi.

Similar to other Goodyear Autocare, Autocare Thanh Phat is built under Goodyear’s strict standards to become a professional tire care center with experienced, skillful technicians and modern equipments such as lifts, wheel alignment machines and others… to better serve tire and vehicle maintenance.

In addition, Goodyear Autocare also offers many new experience compared to old models of a tire centre, by providing other facilities such as the reception area which takes in requests and provides consulting services; the entertainment area to provide customers with a place with Internet for working and entertaining while at the same time be able to observe every step of maintaining their vehicles through the camera system installed there.

The ultimate goal of the centre is to provide customers with the best services and products for them to have a comfortable and safe journey. Currently, the Autocare service network has covered every part of the country, including the southeast, southwest, the central and the north, and is still being expanded to other provinces across the country.

On this occasion, customers are gifted a car digital video recorder when purchasing any two Goodyear tires at Goodyear Autocare Thanh Phat. The programme takes place from now till February 18.

Israeli textile firm invests in Binh Dinh

Delta Galil Industries, an Israeli producer and distributor of apparel products, has got a license to build a manufacturing plant in the south-central province of Binh Dinh.

According to a source from the Binh Dinh Investment Promotion Center, the provincial government has licensed Delta Galil Industries to develop Delta Galil Vietnam textile-dyeing-garment plant in Phu Cat District. The US$13-million project will cover an area of 18,000 square meters at Cat Trinh Industrial Park developed by Nha Be Garment Corporation.

The project scheduled for operation in the fourth quarter of this year will manufacture yarn and cloth and produce apparel items. The project is expected to create many jobs and help spur socio-economic development in the locality.

Delta Galil Vietnam textile-dyeing-garment plant is the first foreign-invested project to be licensed in Binh Dinh this year.

The source said Delta Galil Industries had got involved in this project probably because of the Trans-Pacific Partnership (TPP) agreement which Vietnam could sign some time this year.

Established in 1975, Delta Galil Industries is a global manufacturer and marketer of private label apparel products for men, women and children. It is also the partner of leading fashion brands like Calvin Klein, Nike, Hugo Boss and Victoria’s Secret and sells its products under brands like Wilson, Maidenform and Tommy Hilfiger.

Japan wants to transfer egg production know-how

A vice chairman of Japan’s ISE Food said the company is keen to cooperate and transfer egg production know-how to HCMC at a meeting on February 9 with the city’s vice chairman Le Thanh Liem.

Shuntaro Ise said his three-day visit to HCMC aims to explore opportunities to partner with local enterprises in the field and introduce eggs of the company.

ISE Food also wants to share farming experiences with farmers in HCMC and Vietnam as a whole.

According to Ise, the company has breeding farms for around 120 million hens in Japan and 12 million hens in the United States.

An exhibition on eggs will be organized in Japan this August, and Ise hopes some enterprises in HCMC will join the event to share experience concerning egg production.

HCMC vice chairman Liem said the city consumes nearly three million eggs a day and 1-1.5 billion eggs a year.

At the meeting, Liem assigned the HCMC Department of Agriculture and Rural Development to consider cooperation with ISE Food.

The HCMC visit by ISE is part of the agricultural cooperation program between HCMC and the Japanese Ministry of Agriculture, Forestry and Fisheries. Both sides signed an agreement on January 20 to attract Japanese agricultural businesses to invest in the city.

Major commercial center project get off ground in Haiphong

Vincom Retail Joint Stock Company under Vingroup and Haiphong Real Estate Development and Investment Company have started work on a shopping and entertainment complex in the northern city of Haiphong, according to Vietnam News Agency.

Located in the center of Haiphong, the Vincom Le Thanh Tong-Haiphong center will have total floor area of 48,000 square meters on Le Thanh Tong Street in Ngo Quyen District.

Le Khac Hiep, vice chairman of Vingroup, said Vingroup’s first project in Haiphong City has a total investment of nearly VND600 billion and is expected to contribute to economic growth in the city and the region as well.

“We will speed up construction so that the facility can be put into service within this year,” Hiep said.

As designed, the center will consist of an all-in-one shopping-entertainment facilities and a commercial house project named ‘Shop House’. The shopping mall will have floor space of 20,000 square meters for fashion and consumer goods stores, entertainment facilities and eateries.

The project also comprises of 47 blocks with six different types of housing.

Vincom Retail Joint Stock Company had had total assets of US$1.7 billion as of the end of 2014.

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