Teenagers with assets can open bank accounts on their own

Individuals aged between 15 and 18, who own separate assets, will be allowed to independently open and operate bank accounts without seeking approval from their parents or guardians.

A draft circular on the issuance, use and payment of bank cards recently released by the State Bank of Viet Nam (SBV) states that these individuals may be permitted to open and manage their own accounts in commercial banks and foreign bank branches. Once approved, the circular will replace Decision No 20/2007/QD-NHNN, issued in 2007, which only allows people aged 18 and above to own bank cards.

The draft circular also proposes that individuals aged 11 to 14 may own bank cards, which will function as sub-cards of the primary cards held by their parents or guardians.

The SBV disclosed that 77.3 million bank cards were issued by 50 card-issuing organisations until the end of October. Moreover, nearly 15,900 ATMs and more than 164,000 points of sale/electronic draft capture (POS/EDC) are installed across the country.

MoF recommends fee, levy changes

The Ministry of Finance (MoF) proposed to omit or adjust 22 fees and four levies in the draft of the Law of Fees and Levies.

The MoF recommended the removal of three overlapping fees: security and order fee; natural disaster prevention fee; and securities equipment and infrastructure use.

Fees and levies that are listed under the law but have not been utilised will also be deleted. This includes fees for verification of import and export goods, waterway usage, domestic waterways' jets and canals and electric radio frequency protection. Evaluation fees imposed on relics, antiques and precious national objects were also recommended for deletion.

The MoF also suggests the amendment of five fees to become service fees to attract investors. These are fees imposed for parking, sanitation, ferry services and markets. Fees on roads under the build-operate-transfer (BOT) stations were included as well.  

The ministry also proposed to reposition some fees to focus on price mechanisms, including fees on measure mean evaluation, judicial evaluation, bids and hospital services. Examination fees are also included in the proposal.

The current list includes 73 types of fees, which are categorised under 12 groups, and 43 types of levies placed under five groups.

However, the MoF revealed that the management in charge of the use of fees and levies failed to meet the requirements imposed on state budget collection and spending, as well as the guidelines that aimed to attract investment to public services.

The MoF asked the government to draft the law, which will permit localities to decide on the fees and levies to be exempted or reduced within the scope of their authority.

Viet Nam Fashion Show 2014 attracts 150 firms

The Viet Nam Fashion Show 2014, which listed the participation of 150 businesses, will take place in the capital from December 19 to 25, the event's organisers announced on Tuesday.

The organisers shared that the unfavourable global and domestic economic conditions have posed many challenges to domestic businesses, especially in the garment and footwear sectors. These difficulties typically involve the search for consumption markets, they said.

They described the upcoming event as a good opportunity for local firms to effectively advertise their products and services to customers.

Co.opmart outlet in Cao Lanh is 74th store nation-wide

Saigon Co.op yesterday opened a new Co.opmart store in Cao Lanh city in Dong Thap Province, its 74th outlet nation-wide.

The 8,000sq.m store stocks more than 30,000 items, including foods, cosmetics, fashion garments, electronic goods, and household utensils.

On the same day Saigon Co.op also opened a Co.op Food convenience store on Luong Dinh Cua Street in HCM City's District 2.

On December 13 it had broken ground for construction of Co.opmart Quang Binh in the province's Dong Hoi city. The store is expected to open in November next year.

Microsoft Dynamics AX offers best solutions for e-commerce

Votiva-SAGlobal, Microsoft, HP and Solver BI today organised “E-commerce and Business Intelligence Solution for Retailer and Distributor” seminar in Ho Chi Minh City.

“The online shopping has significantly changed the way of interaction between customers and suppliers. The e-commerce and social media are the key strategic tools that helps retailers and distributors reaching and targeting a wide-ranging customers and consumers. Microsoft Dynamics AX WebStore solution enables retailers and distributors to create and deploy a powerful ecommerce presence that fits their target markets and delivers a pleasant, competitive customer experience with a high probability of return visits,” said Dinh Tien Dung, general director of Votiva-SAGlobal at the seminar.

Votiva-SAGlobal is the leading Microsoft Dynamics implementation service provider in Vietnam. Votiva-SAGlobal is appointed by Microsoft as a trustworthy partner to distribute and implement Microsoft Dynamics ERP, Microsoft Dynamics ERP for Retail and Microsoft Dynamics CRM in Vietnam and other Southeast Asian markets.

Designed for easy deployment and low-overhead administration, webstore is a comprehensive e-commerce resource that takes full advantage of the existing instance of Microsoft Dynamics AX. Users can quickly build and roll out multiple B2B and B2C sites, target them at the customer segments they want to reach, and fully control them from within Microsoft Dynamics AX. Inventory, product, customer accounts, and other data from the ERP system feed into webstore, and transaction and customer details from webstore flow directly into AX. For customers, the solution offers an efficient shopping experience that keeps their information persistent.

According to Dung, BI360 Business Intelligence Suite gives retailers and distributors the ability to forecast, track and analyse product and store sales, plan more effective promotions, purchase merchandise that matches customer regional buying preferences, and improve staffing plans to better match store traffic. Current and accurate information is critical in today’s retail industry. BI360 can provide the detailed information retailers and distributors need to proactively run their business and improve store performance and profitability.

With BI360 Business Intelligence Suite, retailers will be able to budget and forecast revenues and expenses, predict buying trends and plan more effective promotions, optimise staffing levels, track product, store and region performance, combine data from the ERP system with other data sources, produce operational and financial reports and establish and monitor benchmark objectives.

UK company starts work on resort project

A British firm on Tuesday began building a five-star resort onPhu Quoc Island, administered by the southern province of Kien Giang, the second deluxe project to be started for the last ten days on Vietnam’s largest island.

[Officials host ceremonial groundbreaking for the Star Bay resort project on Phu Quoc Island in Kien Giang Province, located in southern Vietnam, on December 16, 2014.<br /><span>Tuoi Tre</span>]

The Star Bay project is developed by Starbay Vietnam Co. Ltd., owned by Starbay Holdings Ltd. from the UK, and is scheduled to open in 2016.

Hoa Binh Construction and Real Estate Co. Ltd. is the design and building contractor of the first phase of the resort, located to the north of the island, which consists of a 250-room hotel and 50 bungalows.

This is the first project Hoa Binh, a Vietnamese firm, is in charge of both designing and building, which will create convenience for the developer and contractor during its implementation.

On December 6, Hoa Binh also started work on a JW Marriot hotel project as part of the high-end Bai Khem Mat Troi Phu Quoc retreat.

The company had won a VND72 billion (US$3.39 million) contract to build eight blocks of the JW Marriot hotel.

The 138-hectare Bai Khem Mat Troi Phu Quoc project will also comprise hotels operated by other famous brands including InterContinental, Sofitel, and Pullman.

The project is expected to be one of the leading ecotourism destinations in Vietnam, according to the Vietnam News Agency.

Renowned globally as a paradise-like island, Phu Quoc covers 589.23 km² off the southern province of Kien Giang. Administratively speaking, the island is classified as a district administered by the Kien Giang administration.

Vietnamese Prime Minister Nguyen Tan Dung has approved a plan to develop Phu Quoc into a special economic-administrative region administered by the central government by 2020, according to the Phu Quoc District website.

To that end, the government has created exclusive mechanisms for Phu Quoc, and the island is also enjoying the highest-ever preferential treatments to have its traffic, infrastructure, and energy systems developed up to its potential.

The island, now a popular destination for retreats with its white-sand beaches and high-quality seafood, is attracting increasing investment as it transforms from a resort island into an economic hub.

Phu Quoc has lured around 200 investment projects spanning 8,768 hectares, the Vietnam News Agency said, citing the island’s project management board.

State-owned infrastructure developer to IPO

Infastructure Development and Construction Corporation (LICOGI) has announced its plan to sell a 25 per cent stake for its upcoming initial public offering.

LICOGI has a registered capital of VND900 billion ($42.3 million). For the IPO the state intends to keep 36 million shares, a 40 per cent stake, while 1.168 million shares or 1.3 per cent will be put up for sale to employees, 63,000 shares, 0.07 per cent will be sold to the labour union, 31.5 million shares, 35 per cent, are slated for sale to strategic investors, and 21.27 million shares, 23.63 per cent, will go on sale to the public.

The minister of construction has been authorised by the prime minister to decide the initial price of the shares and choose the financial firm that will advise LICOGI on its IPO and the strategic investors.

After the IPO, LICOGI will have to rent land from the government and pay the necessary fees to transfer its ownership of land, according to the Land Law. According to a recent report by the State Audit of Vietnam, LICOGI’s property holdings total 3.4 million square metres, part of which has been reportedly misused.

Sofitel Plaza Hanoi wins prestigious awards

Contemporarily elegant and tastefully decorated, Sofitel Plaza Hanoi is ideally located within walking distance to the city center and showcases panoramic views of the charming lakes.

Blending the French art de vivre with the grandeur of Vietnamese heritage, the 273 newly renovated rooms offer a genuine experience of sophistication and luxury.

The five star hotel has been chosen by guests, magazine readers, and authoritative experts of the prestigious accolades: Trip Advisor (Certificate of Excellence), Agoda.com (Gold Circle Awards), World Luxury Hotel Awards (Luxury Serviced Apartments & Luxury Business Hotel), Expedia, AsiaRooms, Zoover, HolidayCheck, Travellive (Golden List Hotels), and The Guide Awards by Vietnam Economic Times.

“In recent years, those awards have grown in stature to become among the most respected travel and hospitality honors. The dedicated team at Sofitel Plaza Hanoi always strives to create memorable experience for all guests by tailored service and personal touch in every detail. We continuously maintain and upgrade its rooms and facilities to ensure the ultimate comfort and luxury experience,” said the hotel general manager Guy Poujoulat. “These awards are truly meaningful recognition for our constant efforts and help demonstrate our success in continually upgrading products and services to provide guests with the best experience possible.”

VAMC has bought bad debts worth $4.76 billion

The Viet Nam Asset Management Company (VAMC) has bought more than VND100 trillion (US$4.76 billion) in bad debts so far.

The VAMC has bought $4.76 billion in bad loans so far. Photo hanoimoi.com.vn

About VND65 trillion ($3.10 billion) of debts were purchased this year alone.

According to the Tuoi tre (Youth) newspaper, the company sold and recovered about VND4 trillion ($190.48 million) of the debts.

VAMC Chairman Nguyen Quoc Hung told the newspaper that the biggest problem for the firm now is how the debts can be sold so that the interests of both the banks and the borrowers are assured.

A complete mechanism for dealing with property mortgages has not been put in place yet. Thus, speeding up of debt processing is still difficult, he said.

"If VAMC sell debts at any cost, the damage for the banks and the borrowers will be great. Besides, it is not easy to seek bad debt buyers at a time when the market conditions are still tough," he added.

The State Bank of Viet Nam has submitted a draft document revising Decree No 53/2013/ND-CP, which regulates the establishment and organisation of VAMC, to the government for consideration.

In the draft, the central bank suggested that the charter capital of the company be raised to VND2 trillion ($95.24 million) from the current VND500 billion ($23.81 million).

HCM City seeks revision of land prices

The People's Committee of this southern city sought the revision of the framework governing local land prices to be applied next year during a working session on December 15.

A view of HCM City. The city will revise the land prices to be applied next year. - Photocafef.vn

The request of the committee to amend this framework was submitted to the Department of Natural Resources and Environment and other relevant agencies.

Decree No. 104/2014/ND-CP, which was issued by Prime Minister Nguyen Tan Dung on November 14, states that the rates for residential urban lands in the east-southern region of Viet Nam range between VND120,000 and VND162 million (between US$5.7 and $7,710) per square metre.

The natural resources department had earlier presented a land price table for 2015, which featured a few changes compared with the 2014 version that stipulated local land rates should range between VND110,000 and VND81 million (between $5.2 and $3,850) per square metre.

The decree will take effect on December 29. The city will be expected to present an amended land price table to be considered by the municipal People's Council on December 30. The public announcement will be done on January 1 next year.

Jeju Air launches direct Seoul-Ha Noi flight

Korean airline Jeju Air has announced that it will launch direct flights between Seoul and Ha Noi on December 18.

Jeju Air crew wearing Vietnamese hats promote a new flight between Incheon and Hanoi in Seoul in December. - Photo chosun.com

The Boeing 737-800 aircraft will depart from Noi Bai International Airport for Incheon International Airport at 2.25pm every day.

Vietnamese visitors to RoK totalled 130,065 in the first 11 months of 2014, an increase of 19 per cent over the same period last year.

Jeju Air and four other airlines -- Vietnam Airlines, VietJetair, Korean Air and Asiana Airlines -- provide direct flights between the two countries.

Established in 2005, Jeju Air is a low-cost airline that mainly carried passengers from other destinations in South Korea to Jeju Island. Now the airline operates both domestic and international flights.

Vietnamese auto producers work together

Five Vietnamese companies have decided to cooperate to produce locally-made automobiles amid increased competition from foreign producers.

These companies, including the Vietnam Engine and Agricultural Machinery Corporation (VEAM), Vietnam Motor Industry Corporation (Vinamotor), Saigon Transportation Mechanical Corporation (SAMCO), THACO Group, Xuan Kien Automobile JSC (Vinaxuki), Z179 Factory under the Ministry of National Defense and Vietnam Mechanics Development Consultancy Centre (MDC), control much of the major production and assembly capability in Vietnam and are members of the Vietnam Association of Mechanical Industry (VAMI).

They have agreed to set up the Automobile Department under VAMI in order to help local producers to produce and assemble automobiles and foster local supporting industries.

Dao Phan Long, VAMI’s general secretary and vice chairman, said the group plans to focus on four fields: trucks, passenger vehicles, sepecialised vehicles and four-seat cars.

“Domestic production could meet half Vietnam's demand, and we get the added advantage of kick starting the domestic auto industry," said Long.

Bui Ngoc Huyen, general director if Vinaxuki, said, “This cooperation proves our determination to increase the capacity of local auto industry.”

Huyen went on to say that local auto firms are facing fierce competition from FDI firms, as they lack capital, experience in branding and access to technology. Meanwhile, FDI firms are provided with numerous incentives.

“In order to support local producers, I’ve proposed cutting down the special consumption tax for cars to 50% if local car production meets half the demand. Even though the Ministry of Industry and Trade agreed, the Ministry of Finance did not,” he said.

He added that with a population of nearly 100 million, domestic auto demand will be on the rise; however, it’s important to work out more incentive policies for local production.

Power tariffs seen rising

Though input costs are stable or even down, electricity tariffs may go up in the coming time, heard a recent meeting of the Ministry of Industry and Trade.

The average electricity price has been kept stable at VND1,508.85 per kWh since August last year. At various meetings with the media, the ministry rejected questions about the possibility of power price hikes.

The ministry said at a meeting early this month that it had told the Electricity Regulatory Authority of Vietnam, the General

Department of Energy and Vietnam Electricity Group (EVN) to draw up a price adjustment plan for submission to the Prime Minister for consideration. However, the ministry did not clarify whether power prices would move up or down.

News site Vietnamnet cited a source as saying EVN had proposed increasing the average electricity price 9.5% this year, from VND1,508.85 per kWh to VND1,652.19. A leader of EVN declined to comment on this information.

Under the Prime Minister’s Decision 24, power prices can be adjusted only when input costs change compared to the ones used to calculate current prices.

However, cost parameters are quite stable, with the coal price unchanged and oil prices falling in line with declining oil prices on global markets.

EVN is allowed to increase the power price by 5% if input costs fluctuate higher than 5%. A rise of over 5% needs approval of the ministry and the Government.

The General Department of Energy and EVN are told to consider and prepare a road map for next year’s power tariffs adjustments in line with the market mechanism. In addition, it is likely that the increase in the power transmission could be a decisive factor behind the power price hike.

According to the Electricity Regulatory Authority of Vietnam, the mechanism used to set the transmission cost will be adjusted up and account for 10-12% of the average electricity price like in many other countries, instead of 5.7%, to balance the financial capacity of National Power Transmission Corporation.

Tax, fee make up one-third of petrol prices

Fuel retail prices are still higher than other markets although crude oil prices have kept falling on global markets in recent days as taxes and fees account for one-third of the domestic fuel prices.

For each barrel of fuel imported into Vietnam at US$81, local traders have to pay tariff of nearly VND3,000 per liter, special consumption tax of VND1,400 per liter, environmental fee of VND1,000 per liter and value added tax of VND1,800 per liter. Therefore, fuel importers have to spend more than VND7,000 on tax and fee payments for every liter of petrol imported.

The respective figures are VND5,000 per liter of diesel, VND5,200 per liter of kerosene and VND4,000 per kilo of heavy fuel oil, as the special consumption tax and environmental fee are not imposed on those products.

Retail prices of A92 gasoline, diesel and kerosene have been at VND19,930 per liter, VND18,410 per liter and VND18,360 per liter respectively on the domestic market from December 6.

The Ministry of Finance also adjusted fuel import duties on the same day, raising tax rate of petrol imports by nine percentage points to 27%, diesel 0.05S to 23% from 14%, and kerosene to 26% from 16%.

A fuel wholesaler said the current retail prices of fuel products are almost equivalent to the levels on the market on February 2, 2011, which were VND19,300 per liter for A92 petrol and VND18,250 per liter for diesel.

However, fuel import prices at the two periods are completely different.

In 2011, traders paid more than US$105 to import one barrel of petrol, over US$115 for one barrel of diesel 0.05S and the same cost for kerosene, and enjoyed free import tariffs.

Meanwhile, fuel prices on December 10 stood at US$71.39 per barrel of A92 petrol, US$79.56 per barrel of diesel 0.05S and US$80.71 per barrel of kerosene in Singapore, falling by US$5-7 per barrel against the previous week, according to the Ministry of Industry and Trade.

The current import prices of fuel are even lower than on June 11, 2010, which were US$79.42 per barrel of A92 petrol, US$84.63 per barrel of diesel 0.05S and US$84.43 per barrel of kerosene as listed on the website of Vietnam National Petroleum Group (Petrolimex).

The import tax rates on A92 petrol, diesel 0.05S and kerosene were 17%, 10% and 15% respectively at that time.

Fuel wholesale traders said with the current fuel import prices, the base price, which is constituted by the world’s average 30-day price plus taxes and costs and used to set local retail prices, is lower than the current fuel retail prices by around VND400 per liter. So the retail fuel prices may fall further in the next few days.

Five fisheries centres to be built nationwide

The Ministry of Agriculture and Rural Development plans to build five fisheries centres across the country between 2015-2020, heard a conference held in Rach Gia city, the Mekong Delta province of Kien Giang on December 16.

Located in northern Hai Phong city, central Da Nang city, central Khanh Hoa province and Kien Giang, the centres will include fishing ports and logistics facilities. The Khanh Hoa centre is expected to commence next year.

The ministry will also invest nearly 6.4 trillion VND (299.4 million USD) in building storm shelters for fishing vessels. A report delivered at the conference showed that between 2010 and 2014, the country invested in 70 storm shelters, mainly in the Tonkin Gulf and the central, southeastern and southwestern coastal areas. Of which, 42 were completed, accommodating over 31,000 fishing ships.

According to the ministry’s General Department of Fisheries, during the above-said period, around 244 billion VND (11.4 million USD) from the State budget was poured into upgrading and expanding Quy Nhon, Phan Thiet, Binh Dai, Lach Bang and Sa Ky fishing ports.

In addition, another 17 fishing ports in the country were also upgraded thanks to a 30 million USD loan from the World Bank.

Can Tho promotes economic cooperation with RoK

The Republic of Korea (RoK) wishes to cooperate with Can Tho city in infrastructure development and science technology application into high-tech industry, said Kim Kyong Soo, Vice Chairman of the Korea Display Industry Association.

During a working session with leaders of the Can Tho People’s Committee on December 16 in the Mekong Delta city, Kim introduced the RoK’s potential, stressing that the country focuses on building high-tech industrial parks in a bid to helping the city transform its industry structure.

He added that the city’s infrastructure including bridges, roads and airports will help shorten geographic distance between Can Tho and other localities, attracting more investors.

On his part, Tran Thanh Man, Secretary of the Can Tho Party Committee, spoke highly of the recent cooperation between the countries, especially the Vietnam-RoK Incubator Park (KVIP) in the city which has directly benefited millions of workers in the Mekong Delta.

He pledged that the city will provide best conditions for the RoK investors.

Real estate market warms up

The real estate market has seen positive changes in the first 11 months of 2014, with the number of successful transactions increasing considerably, the Vietnam Economic News cited the Ministry of Construction as saying.

Deputy Minister of Construction Nguyen Tran Nam assessed that the real estate market has begun to recover. The number of transactions on the market increased continuously in 2013 and 2014. There were almost 1,000 successful real estate transactions in Hanoi in the first 11 months of 2014, a 200 percent increase on the number recorded in 2013, while 2013’s figure was 1.5 times higher than that in 2012. The number of successful real estate transactions in Ho Chi Minh City reached 8,850 units during in the first 11 months of this year, up 135 percent from 2013.

About 293 trillion VND in investment was poured into the real estate market in the first three quarters of 2014, up 12 percent from the same time in 2013, while the country’s credit growth was only six percent during the same period.

The deputy minister also attributed the real estate market’s recovery to the securities market’s improvement. Experts have predicted that the real estate market will finish 2014 in a better shape.

Tran Kim Chung from the Central Institute for Economic Management (CIEM) was quoted as saying that house prices remained stable and had stopped decreasing. Housing prices ropped by more than 30 percent in 2011-2013 but recently became stable and had stopped falling. Meanwhile, the projects with good locations, which have been completed or will be completed soon, increased by just 1-2 percent compared to 2013.

Dr. Hoang Kim Huyen from the National Financial Supervisory Commission said that investment in the real estate market has tended to increase again.

Dat Xanh Mien Bac Real Estate and Services Joint Stock Company (Dat Xanh Mien Bac) General Director Vu Cuong Quyet said that most of investors have offered products with reasonable prices so few projects were suffering losses.

CEN Group Deputy Chairman Pham Thanh Hung said that there will be no wave of projects experiencing losses as many believed.

Dat Xanh Mien Bac General Director Vu Cuong Quyet said that projects that are being completed have the potential to increase prices but investors who have entered the market for a short period of time will be careful in increasing prices as demand remains lower than supply on the real estate market. Therefore, real estate prices are expected to remain stable.

FTAs to bolster up Vietnam’s economy: minister

More new opportunities will be opened up for Vietnam on economics, trade and investment once the country’s free trade agreements (FTA) with its partners are reached, said Minister of Industry and Trade Vu Huy Hoang.

Hoang granted an interview to Vietnam News Agency reporters on the context that Vietnam and the Customs Union of Russia, Belarus and Kazakhstan concluded their FTA negotiations on December 15.

According to the minister, under the pact, the Customs Unions provides Vietnam with preferential tariffs in order to facilitate the export of the country’s staples such as farm produce, seafood, garments and textiles, footwear and wood furniture.

Meanwhile, Vietnam agrees to open its market under a set roadmap for several commodities from the union, including husbandry products, machines, equipment and vehicles, which will not compete with made-in-Vietnam goods, but help to diversify the domestic market.

The Customs Union, with a combined population of approximately 170 million and total GDP of 2.5 trillion USD, is not a choosy market, while its demand for imports is increasing.

Vietnam is the union’s first FTA partner, which will make Vietnamese businesses integrate into the union earlier than others with more preferential conditions. Once the agreement becomes effective, two-way trade is expected to rise by 18-20 percent a year, from 4 billion USD in 2014 to 10-12 billion USD in 2020, stated the official.

He also expressed his belief that direct investment from the union into Vietnam will also increase thanks to trade liberalisation commitments and a more favourable investment climate, while logistics, financial and banking services and customs cooperation will be liberalised.

Vietnam will also have a good chance to learn from the union’s advanced technologies to serve the country’s industrialisation and modernisation, he added.

He also stated that in the last months of 2014, the country basically finished negotiations on other free trade agreements with the European Union and the Republic of Korea.

According to the ministry, all of the three agreements, expected to be signed by the first half of 2015, cover a wide range of contents, including trade in goods, trade in services, investment, rules of origin, trade remedy, customs facilitation, technical barriers to trade, intellectual property, food hygiene, animal and plant quarantine, and legal and institutional issues.

Vietnam firms urged to boost trade, investment with Chile

The business circle needs to exert more efforts to foster trade and investment between Vietnam and Chile, particularly when the bilateral free trade agreement has been enforced since January 1, 2014, said Nguyen The Hung, Deputy Director of the Ho Chi Minh City branch of the Vietnam Chamber of Commerce and Industry.

At a workshop introducing the Chilean market on December 16, Hung further said the enforcement of the FTA with Chile, which has the second biggest trade revenue in Latin America, will offer a multitude of opportunities for enterprises to do business.

The stable growth in two-way trade has also laid a firm foundation for their investors, exporters, and importers to make further inroads into each other’s market, he added.

Chile has advantages in mining, metallurgy, fishing, wine making, and food processing which turn out products in line with Vietnam’s demand. Meanwhile, the Southeast Asian country’s main exports to Chile include footwear, garments, agricultural products, and wood and plastic products, Hung explained.

Nguyen Thanh Quang, a representative from the Chilean Consulate General’s Trade Office in HCM City, said Chile with a stable political system and a transparent investment climate will be a gateway for Vietnamese goods to enter other markets since the Latin American nation currently ships commodities to the US, China, and Japan, among others.

Vietnamese firms can pour money into potential fields in Chile such as food industry, forestry, services, mining, and metallurgy, he added.

Two-way trade has balanced over the last three years with the turnover topping 530 million USD in 2013, including nearly 220 million USD of Vietnamese exports.

In the first ten months of 2014, bilateral trade surged to over 710 million USD, including nearly 420 million USD of Vietnamese shipments.-

Vietnam, Mexico seek to tap cooperation potential

Vietnam and Mexico still have room to further increase their economic cooperation to match the good political relations between the two countries, according to Vietnamese Ambassador to Mexico Le Linh Lan.

Addressing a workshop on December 15 in Mexico City, where local enterprises seek opportunities for investment and tourism promotion in Vietnam, the ambassador noted that bilateral trade exchange is likely to surpass 1.8 billion USD in 2014, but the figure is small compared with the total foreign trade values of 780 billion USD and 280 billion USD of Mexico and Vietnam, respectively.

During the event, Mexican business representatives said a lack of knowledge and accurate information about Vietnam and its market and culture is a major obstacle for them in trade with Vietnam.

They put many questions on Vietnam’s law and administrative procedures on investment and trade. Many expressed the wish to visit Vietnam to study the market.

A photo exhibition was also held in the framework of the workshop to introduce to the Mexican friends about Vietnam, its people and culture in the process of international integration.

Nova Group to invest over $50m in baby formula production

Nova Group and Ireland-based Kerry Group, a global supplier of infant formula ingredients, have signed an agreement to develop high-quality affordable milk formula in Europe for the Vietnamese market.

Nova Group and Ireland-based Kerry Group, a global supplier of infant formula ingredients, sign on December 15 an agreement to develop high-quality affordable milk formula in Europe for the Vietnamese market. - VNS photo

Nova, which has interests in real estate, veterinary medicines, and food, will invest over US$50 million in developing modern dairy cattle farms in Ireland and product distribution systems, Nguyen Hieu Liem, its vice chairman, said.   

The two will also focus on developing a system for tracing product origins - from raw materials to final product - to ensure their best quality and the absolute safety of children, he said.

Vo Thuy Anh, CEO of Anova Milk Joint Stock Company, an affiliate of Nova, said the two sides would inaugurate the Anka product line for children in late March or early April before beginning research to develop other nutritional products for the Vietnamese market.

Anka milk products would be of high quality but 20 per cent cheaper than similar products in the market, she said.

"As one of the global suppliers of infant formula ingredients for established multinational brands, we are delighted to play a key role in delivering nutritious milk to infants in Viet Nam through this partnership," Edmond Scanlon, president of Kerry Group in the Asia-Pacific region, said.

Kerry has invested 100 million euro (over $125 million) in its Global Nutrition Application Centre with over 800 scientists and nutritionists to support ongoing research and development of infant and follow-on formula for growing infants, he said.

Milk consumption in Viet Nam is lower than global levels, offering dairy investors great potential, the two sides said.

Hospital autonomy and experience for Vietnam

A consultative workshop on hospital autonomy, the quality of hospital services and management took place in Hanoi on December 16, with both domestic and international experts in attendance.

Prior to 1989, all public hospitals in Vietnam were highly subsidised by the State, offering medical check-ups and treatment to the public for free.

As the country entered the renovation (doi moi) stage, hospitals were allowed to charge patients a portion of treatment expenses and spend it on improving operations. Later, hospitals gradually shifted from merely performing the tasks assigned by the State to providing services in order to exist.

In line with this trend, the government issued a decree in April 2006 providing for the autonomy and self-responsibility in terms of task performance, organisational apparatus, payroll and finance of public non-business units, including hospitals.

According to head of the Health Ministry’s Planning and Finance Department Nguyen Nam Lien, eight years after the decree’s promulgation, 8 out of 39 hospitals under the management of the Health Ministry have become self-reliant financially while 5 others are still relying on the State budget for regular activities.

Thanks to autonomy, many public hospitals have restructured their apparatus, mobilised capital for human resources development and equipment procurement.

However, it also exposes drawbacks, including the unnecessary use of hi-tech equipment that costs patients a lot of expenses.

A representative from the Policy and Health Care Management Faculty at Japan’s Keio University shared the experience of Japanese hospitals, saying that public and private health establishments should offer services for similar rates and they should be treated on equal terms.

Participants also examined lessons from China and some Vietnamese hospitals which have successfully followed the autonomy system.

The workshop was co-hosted by the Health Ministry and the World Health Organisation.

Son La calls for investment in Moc Chau tourism zone

Son La province is calling for investment in its Moc Chau National Tourism Zone, which is expected to become a driving force for the tourism development of the locality as well as the whole northern midland and mountainous region.

At a seminar highlighting Moc Chau in Hanoi on December 16, Chairman of the provincial People’s Committee Cam Ngoc Minh released that the Prime Minister recently approved a master plan for the development of the tourism zone by 2020, with a vision to 2030.

Under the plan, the zone, covering 206,000 hectares in Moc Chau and Van Ho districts, will feature diversified and unique tourism products with high competitiveness along with natural landscapes and ethnic cultural identities.

The zone is expected to welcome 1.2 million holidaymakers by 2020 and 3 million by 2030, generating revenues of 1.5 trillion VND (71.4 million USD) and 6 trillion VND (285.7 million USD) respectively.

It will target visitors from the Red River Delta and the northern midland and mountainous region as well as those from foreign markets such as Western Europe, Northern America, Northeast Asia and Southeast Asia.

The zone will include three key tourism centres, namely the Moc Chau relaxation centre, the Moc Chau eco-tourism centre and the Moc Chau recreational centre.

Community-based tourism villages will be formed in Dong Sang, Muong Sang, Tan Lap communes in Moc Chau district and Chieng Khoa commune in Van Ho district.

The province also plans to establish a transnational tourist route connecting Moc Chau and Laos via Long Sap border gate and intensify connectivity with other ASEAN member countries like Thailand and Myanmar.

According to the local Department of Culture, Sports and Tourism, Moc Chau has enjoyed a continuous increase in the number of tourists, from 288,000 arrivals in 2010, to 600,000 in 2013 and about 850,000 in 2014, mainly during holidays, winters and springs when plum and peach flowers blossom, and in Mong ethnics’ New Year festival in September.

Vinacafé records The National Brand for four consecutive years

Vinacafé, an affiliate of Masan Consumer, is recognised The National Brand at an event held by the Ministry of Industry and Trade today.

It is also the only Vietnamese coffee brand given the title for four consecutive years. The title is part of government’s programme to promote Vietnam’s image through national products’ branding.

In a separate event, Vinacafé has announced that it is accompanying the Vietnamese youth delegation in "The Ship for Southeast Asian Youth Program 2014" from October 29 tp December 18, 2014.

This is an important diplomatic activity with the aim of strengthening solidarity and friendship among the youth in ASEAN countries and Japan.

Thereby, Vinacafé contributes to promote Vietnamese coffee culture, and to build image of the Youth in Vietnam with “authentic” characteristics like being dynamic, talented, inclusive, but still remaining Vietnamese manners.

Dong Nai assists local firms accelerate exports

Southern Dong Nai province authorities had a dialogue with over 100 local enterprises on December 16 to figure out their difficulties and seek ways to raise their production and expand export markets.

Nguyen Tri Cong, Chairman of the Dong Nai Livestock Association, proposed local credit organisations allow greater access to preferential credit packages for farmers and accept livestock products as security for their loans.

Representatives from local firms suggested that Dong Nai and credit institutions loosen lending procedures and create preferential loans to help enterprises, especially small and medium-sized ones, access capital sources to expand their business.

The authorities pledged to exert every effort to remove administrative difficulties for enterprises promptly. Meanwhile, the State Bank of Vietnam provincial branch vowed to come up with policies that enable businesses to access needed capital.

In 2015, Dong Nai plans to back local firms to explore new export markets besides traditional ones of Asia, the US, Japan and China. At the same time, the province will also make full use of preferences in markets that are to sign free trade agreements with Vietnam, including the EU, the Republic of Korea, and the Customs Union of Russia, Belarus, and Kazakhstan.

According to the provincial Department of Industry and Trade, the locality earned over 1.2 billion USD from exports in November, up 0.3 percent over the previous month, pushing the turnover in January-November to 11.55 billion USD, a year-on-year rise of 16.8 percent.

In 2015, Dong Nai targets 14.4 billion USD in exports, up 15 percent year on year.

Dong Nai, together with Binh Duong, Tay Ninh, Ba Ria-Vung Tau, Binh Phuoc, Long An and Tien Giang provinces and Ho Chi Minh City, form Vietnam’s southern key economic region.

The province, Ho Chi Minh City, and Binh Duong are amongst the most attractive FDI destinations in Vietnam.

Mekong Delta rice export likely to reach 5.85m tonnes

Rice export in the Mekong Delta is likely to reach 5.85 million tonnes of rice in 2014 worth 2.9 billion USD, equal to the last year’s value, according to the Steering Committee for the Southwestern Region.

The region shipped abroad 5.6 million tonnes of rice as of December 15, and is going to export an additional 250,000 tonnes in the remaining days of the year.

Asia and Africa are the region’s main rice export markets, accounting for 83 percent with the rest coming to markets in America, Europe and Oceania, according to the committee.-

Major expressway project to soon be back on track

Work is expected to start on another landmark expressway in the southwest in the near future following a recent policy move.

The government has just given the green-light to the Ministry of Transport (MoT) to appoint investors to build the important highway project.

The prime minister moved to decide the MoT to select the investors based on the state of urgency facing the project.

In an earlier development in mid-October, the prime minister gave in-principle approval to the 55km Trung Luong-My Thuan expressway project under the Build-Operate-Transfer (BOT) model with the state supporting the investment process by allowing investors to collect tolls on the Ho Chi Minh City-Trung Luong highway.

According to Cuu Long Corporation for Investment, Development and Infrastructure Project Management (Cuu Long CIPM), which is in charge of managing the project – the move means the highway’s biggest bottleneck has been nearly pushed through.

The Trung Luong-My Thuan expressway project was once in the hands of the Bank for Investment and Development of Vietnam (BIDV), as developer of the four-lane motorway.

But BIDV reneged on its plans to execute the project two years later due to its inability to raise the needed capital.

To ensure the project’s feasibility and reduce costs, the expressway will be scaled down from four lanes to two main lanes with a designed velocity of 80km per hour and two subordinate lanes with a designed velocity of 40km per hour.

The project also envisages building approach roads to National Highway 1 and the main lanes.

As proposed by the project consultant, total investment for the first phase is around VND14.6 trillion ($698 million), including VND6.75 trillion ($321 million) for construction and equipment and VND2.55 trillion ($121 million) for land compensation and resettlement.

According to Deputy Minister of Transport Nguyen Van The, construction is slated to kick-off before the end of the first quarter next year.

Cuu Long CIPM estimates show that current traffic volume on National Highway 1’s Trung Luong-My Thuan section amounts to 45,000 standard vehicle equivalents per day, which is expected to reach 100,000 units by 2030.

The timeline for collecting tolls to recoup investment is slated to begin on January 1, 2019 when the highway opens to traffic and will continue for 11 years for the Ho Chi Minh City-Trung Luong section and 20 years for the Trung Luong-My Thuan section.

Initial fares will be VND1,700/standard vehicle unit/km for the former section and VND1,200/standard vehicle unit/km for the latter.

These fare rates are subject to revision every three years with an expected hike of 18 per cent each time.

A raft of both domestic and foreign investors have revealed interest in the project, such as the Tuan Loc-Yen Khanh-BMT-Thang Loi-Hoang An consortium, Metro Pacific Tollway Corp from the Philippines, and local firms Cienco 1, Cienco 5 and Cienco 6.

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