Vietnam stops licensing new cars for app-based taxi services

The pilot program allowing Grab and Uber as well as several local taxi and transportation companies to operate their app-based services in three Vietnamese localities has expanded so rapidly that the transport ministry has been forced to put the brakes on it.

As of April 2017, more than 13,500 cars were participating in the ride-hailing industry, operated by seven companies of the pilot program in Hanoi, Ho Chi Minh City and the south-central province of Khanh Hoa.

The seven services selected by the transport ministry for the program were foreign players Uber and Grab, and Vietnamese names including Mailinh Car, Thanhcong Car, Home Car, LB.Car, and Vic.Car.

Given the large number of cars operating under the new business model, where drivers connect with passengers via mobile apps, the transport ministry has requested that no more new vehicles be licensed to add to the existing fleets of those seven companies.

The decision came after the Hanoi and Ho Chi Minh City transport departments proposed a rule preventing an expansion of the number of cars able to join the pilot program, saying the tech-based cars had been putting pressure on local traffic infrastructure and creating unhealthy competition with traditional taxi and transportation firms.

Ride-hailing apps like Uber and Grab have easily won over local commuters, offering reasonable fares and allaying passengers’ fears of being overcharged or cheated.

The decision by the transport ministry has been hailed by the Hanoi and Ho Chi Minh City transport departments and conventional taxi companies, with the number of tech-based cars in each city reaching alarming highs.

In Hanoi, there are now 19,200 taxis operated by 77 different companies.

This number will remain unchanged until at least 2020 under the capital city’s taxi management plan, meaning no taxi firms will be allowed to expand their fleets.

However, the number of app-based cars has topped 7,000.

In Ho Chi Minh City, it took only a couple of years for the app-based taxi fleet to reach 22,000, double the number of traditional cabs in operation.

The municipal transport department has said previously that the number of ride-hailing cars in the city is “beyond the authorities’ imagination.”

A war has erupted between the app-based cars and their traditional counterparts, particularly in Hanoi and Ho Chi Minh City.

The motorbike segment of Uber and Grab, Uber Moto and GrabBike, are also in conflict with the traditional xe om (motorbike taxi) drivers.

In the latest incident, police in Ho Chi Minh City have had to fire their guns into the air to end a brawl having broken out between two groups of GrabBike and xe om drivers.

VSD tagged to become new supervisor for derivatives market     

The Viet Nam Securities Depository (VSD) could become the supervisor of trading on the derivatives market, along with the State Securities Commission (SSC) and the two local stock exchanges.

The idea was raised during feedback being collected by the SSC for a circular that would replace Circular 13/2013/TT-BTC dated January 25, 2013 by the finance ministry on monitoring securities trading.

VSD would be able to monitor depository and clearing members to see whether they follow regulations on securities and the securities market, keep track of changes in margin lending in the accounts of investors and clearing members, and supervise investors’ positions in the derivatives market.

VSD would have to develop regulations on clearing and a settlement mechanism for the operation of the derivatives market, manage and monitor the amount of margin lending in the market and adjust the limit of positions to investors and clearing members.

In addition, individuals and organisations under the management of VSD will be obliged to submit reports, materials and data on settlement and clearing activities to VSD so that the agency is able to carry out its work as a supervisor. 

Experts fear unchanged monopoly as Vietnam’s sole power utility announces restructure

A state-run company that monopolizes the control of power in Vietnam is set to undergo a restructure which it says will help the electricity market become more competitive, even though experts believe the otherwise.

From now until 2020, Vietnam Electricity (EVN), the country’s sole power utility, will divest, partially and completely, from some companies, while retaining its full holding in several crucial subsidiaries, according to a plan approved by the government last week.

As part of the restructuring process, the parent firm EVN will remain 100 percent owned by the government.

EVN itself will continue to keep its 100 percent stake in the National Power Transmission Corporation, the National Load Dispatch Center and five other power corporations.

The five companies are the regional EVN subsidiaries for northern, central and southern Vietnam, and for Hanoi and Ho Chi Minh City.

EVN is set to retain a stake of more than 50% in two power construction companies, and at least 51% in three power generation firms, namely the Power Generation Corporations 1, 2 and 3.

Finally, the state-owned conglomerate will divest its entire stake in seven other companies.

Once the restructuring is complete, EVN will be a company specializing in “generating, transmitting, distributing and trading electricity.”

This does not represent a significant change as the state-run company is currently in charge of the complete power market, from generation and transmission to retail.

Experts have expressed concern that even when the restructure is effective as planned, the private sector still has little chance to join the market, helping to offer power with more competitive prices to local consumers.

With EVN remaining the sole power utility, Vietnamese consumers have no choice of where to source electricity for their households and companies, and must accept whatever prices are set by the existing power monopoly.

Tuoi Tre (Youth) newspaper has brought its concerns to EVN deputy general director Dinh Quang Tri, and was told that experts and members of the public might have misunderstood the plan.

Tri explained that the entities that EVN will retain a 100 percent stake in are all crucial to national energy security and cannot be opened up to private investors.

“The National Power Transmission Corporation is the operator of the national grid, from the 220kV to 550kV systems, which is the backbone of any country’s electricity system,” Tri told Tuoi Tre.

“It plays a crucial role in Vietnam’s eco-social security and therefore has to be owned by the state.”

As for the region-level transmission companies in the three major regions and Hanoi and Ho Chi Minh City, Tri said the government should “exclusively own these firms by default” as “we do not need a private investor to jump in and develop a similar transmission system, which is costly and unnecessary.”

The EVN deputy chief said the market will become more competitive when the state-run company starts selling its stake in the Power Generation Corporations 1, 2 and 3, which are responsible for the generating and retailing sectors.

“These are the most vital sectors of the electricity market,” Tri said.

There are now several power generators in Vietnam, but all of them have to sell electricity to only one buyer, EVN, which then distributes electricity to consumers via the five regional units.

Addressing concerns that as the only buyer, EVN has the power to press generators to sell at low prices, Tri said the prices will be “negotiated with the ultimate goal that consumer rights are protected.”

As for criticism that the restructure opens limited opportunity for the private sector to enter the power market, Tri said private companies can take part through the BT (build – transfer) scheme.

“Private companies can build facilities for power transmission and transfer to EVN subsidiaries,” he said.

HCM City to name and shame tax-evading Facebook shop owners

A new plan by Ho Chi Minh City tax department looks to name and shame owners of Facebook shops that intentionally evade tax responsibilities.

The move is expected to tighten tax collection over the blooming field of e-commerce, including those conducted via the social media Facebook, in the southern metropolis.

Accordingly, the city’s tax department will coordinate with their colleagues in the departments of trade and information, as well as with Facebook and Google, to compile a comprehensive list of unregistered online businesses in the city.

The list will include individuals and organizations that use internet platforms to sell or provide solutions for payment, transport, and delivery.

The municipal tax department also requested that the local police submit information regarding registered e-commerce websites that have not filed taxes while

The State Bank of Vietnam was tasked with providing a list of organizations that provide payment solutions and the account statements of businesses that provide transport and delivery services.

After reviewing the submitted documents, the tax department will proceed to collect tax arrears from the businesses.

Those that do not comply with requests or show signs of deliberate tax evasion will be named and shamed on public media outlets, according to the plan by Ho Chi Minh City Department of Taxation.

Last month, nearly 13,500 Facebook users running online shops were requested to meet with tax authorities in Ho Chi Minh City to discuss new regulations regarding tax duties for online business operators.

However, the majority failed to show up for their appointments, while others were found to be using fake addresses in their contact details.

According to Le Thi Thu Huong, deputy head of the Ho Chi Minh City Department of Taxation, only those who accumulate over VND100 million (US$4,398) in sales from their online shops are subject to tax obligations.

Agriseco appoints its CEO as new board chairman     

Agribank Securities JSC (Agriseco) on Friday appointed its chief executive officer (CEO) to become the new chairman of the management board.

The new chairman, Phan Van Tuan, became the CEO of Agriseco on September 23, 2015. He was voted a member of the management board in November 2014.

Tuan represents the Viet Nam Bank for Agriculture and Rural Development with an ownership of 21.08 per cent, equal to 44.5 million shares.

The former chairman, Nguyen Kim Hau, was no longer a member of the company’s management board on Friday.

In the first quarter of 2017, Agriseco posted VND54.6 billion (US$2.42 million) in revenues, a three-time annual increase.

The company recorded VND52 billion in post-tax profit, which was a big improvement compared to a loss of VND111.5 billion in 2016’s first quarter.

Despite improvements in its business, Agriseco still posted an accumulated loss of VND510 billion. 

Hung Vuong reports reviewed loss of $7.7 million     

Hung Vuong Corporation (HVG), one of the biggest seafood processors in Viet Nam, has reported a nearly six-time increase in its reviewed loss for the first half of the financial year.

In the first six months of the fiscal year, which begins in October and ends in September of the following year, HVG recorded a loss of VND173 billion (US$7.7 million) in its reviewed financial report.

The main causes for the increased loss include a rise of VND127 billion in the cost of goods sold and a rise of VND116 billion in management costs.

By the end of March, the company recorded a total VND15.39 trillion in its assets. Most of its assets were located in short-term receivables, worth VND6.67 trillion, and inventory, worth VND3.87 trillion.

Shares of HVG, which is listed on the HCM Stock Exchange under code HVG, were placed on the exchange’s warning list on June 13 as the company failed to submit its reviewed financial report for the financial year 2016-2017 four times. 

Kienlongbank to trade on UPCoM in June-end     

Kien Long Commercial Joint Stock Bank will trade 300 million shares on the Unlisted Public Company Market (UPCoM) on June 29.

The bank’s shares will start trading at VND10,000 (44 US cents) per share under code KLB.

According to bank chairman Vo Quoc Thang, trading of the bank’s shares on the UPCoM is an important footmark in its 22-year history.

Trading will improve the bank’s business transparency, increase benefits for investors and shareholders, and help the bank raise capital to meet its future business plans.

In 2017, Kienlongbank has targeted VND36.5 trillion ($1.62 billlion) in total asset, VND32.5 trillion in mobilised capital, VND250 billion in pre-tax profit and an 8 per cent dividend payout rate.

After the first quarter of 2017, those figures have risen 5.8 per cent, 7.15 per cent and 12 per cent year-on-year to VND32.2 trillion, VND28.25 trillion and VND72 billion, respectively. 

Nam Long in tie-up again with 2 Japanese partners for housing project     

Real estate developer Nam Long Group has announced that it will tie up with two Japanese investors, Hankyu Realty and Nishi Nippon, to develop a 26ha housing project called Mizuki Park.

The three signed a deal for the development late last week. The two Japanese partners will provide Nam Long with capital and assistance with management, design and product development.

Mizuki Park is the fourth project that Nam Long will develop together with the two Japanese firms after Fuji Residence, Kikyo Residence and Flora Anh Dao.

It will be located on Nguyen Van Linh Street in District 7, and contain over 4,670 apartments and 170 houses and villas.

It will have many amenities like a walking street, eco-park, lake, and green area besides healthcare and educational facilities.

Several famous companies from Singapore, Australia and Viet Nam will be involved with the project design and consultancy.

Nam Long plans to bring the project to the market in the third quarter of this year.

A developer with 25 years of experience, it owns 500ha of land, which will be enough for the next 10 years. Its shareholders and strategic partners include Nam Viet Ltd, IFC and Ibeworth. 

Lychee prices rocket to record high     

Luc Ngan District in the northern province of Bac Giang enjoyed a rich lychee harvest this year, a boon for farmers with lychee prices at a record high.

This year’s lychee production decreased from 2016 but the current average selling price is VND10,000 (44 US cents) higher than last year, said Nguyen Van Hieu, head of Dong Cong hamlet, Luc Ngan district’s Tan Moc commune.

“Household gardens in the hamlet sell a kilogramme of lychee for VND30,000 to 45,000,” Hieu told Vietnam News Agency, adding that lychee growers in Dong Cong Hamlet expected to earn revenue of VND250 million to VND300 million from selling lychee.

Lychee harvest season begins in May and ends in July every year. During the peak season, in Ha Noi, hundreds of trucks and motorcycles carrying lychee from Bac Giang flock to markets, filling the city with red, ripe lychees.

In Ha Noi, lychee prices vary because there are many lychee types from many localities. Luc Ngan lychee is priced at VND54,000 per kilogramme with stems and leaves, and VND68,000 per kilogramme without them and packed in a net bag.

When the lychee season began, prices fluctuated daily and trended higher than last year, Ha, a fruit shop owner in Ha Noi’s Kim Nguu Street said, adding that some people spent VND80,000 for a kilogramme of lychee to worship ancestors.

In some fruit shops, lychee is sold at VND108,000 to VND120,000 per kilogramme. However, when the season comes to its peak, the prices will fall to about VND60,000 per kilogramme, Ha said.

According to Nguyen Thi Hoa, a Fivimart supermarket worker, the difference in the price of lychee depends on the type of fruit. Many cheap lychees cost VND15,000 to 25,000 per kilogramme and are usually sold by street vendors, Hoa said.

To promote Luc Ngan lychee, Bac Giang Province’s Industry and Trade Department together with Luc Ngan District’s People’s Committee, Ha Noi’s Industry and Trade Department and Big C Supermarket organised the 2017 Luc Ngan–Bac Giang Lychee Week, which began at Big C Thang Long Supermarket in Ha Noi last week.

At the opening ceremony of the event, which will last through June 23, Nguyen Thanh Binh, chairman of Luc Ngan District People’s Committee, said this year, lychee production in the district was estimated at 60,000 tonnes, down 25,000 to 30,000 tonnes compared with 2016.

Although production had decreased over the previous year, due to proper care and techniques, the quality of lychee was much improved, boosting the selling price, Binh said.

Tran Quang Tan, director of the Bac Giang Province’s Industry and Trade Department said Bac Giang lychees are cultivated in a concentrated lychee-growing area, using VietGAP and GlobalGAP standards, ensuring clean produce that meet food safety and hygiene requirements. Therefore, the lychee can be exported to markets such as the EU, the US and Australia.

The seminar heard that today, a container of Luc Ngan lychees will be exported to Thailand, helping Vietnamese lychees approach this market, especially when tariff barriers are lifted under the establishment of the ASEAN Economic Community.

As reported by cafef.vn on June 19, a representative of the Customs Department of the northern mountainous province of Lang Son said that a shipment of fresh lychees was sent to China through the Tan Thanh Border Gate on May 14.

As of June 16, the department has certified 7,365 tonnes of fresh lychee for export to China, with an average of 300-400 tonnes of fresh lychee shipped every day.

Border guard forces work with custom officers to help lychee carriers so the fruit can be transported abroad quickly, the representative said.

According to Bac Giang Province’s Department of Industry and Trade, many Chinese traders have completed procedures to purchase Luc Ngan lychees.

These traders together with the Vietnamese traders opened some 150 lychee selling points in China. A kilogramme of lychee sold in China fetches from VND35,000 to VND57,000. 

Viet Nam seeks trade opportunities with Algerian businesses     

Enterprises in Viet Nam and Algeria will explore more business and trade opportunities with each other, said Vietnamese Ambassador to Algeria Pham Quoc Tru who led a delegation from the Embassy of Viet Nam visiting Oran City, Algeria.

During the visit, from June 15 to 17, Tru introduced Algerian businesses to prestigious Vietnamese export firms, export-import regulations and potential opportunities.

Both Tru and Mouad Abed, chairman of the Oran Chamber of Commerce and Industry, talked about the potential for economic links between the two nations, and discussed ways to boost bilateral ties.

Abed said the visit was a great opportunity for Algerian firms to learn more about the Vietnamese market.

He also spoke at length about economic reforms in the country, which is focused on diversifying the economy to minimise dependence on the oil sector. Algeria is looking to develop non-petroleum sectors such as agriculture, industry, construction, tourism, information and communication technology, and renewable energy, Abed said.

On the occasion, Tru also spoke about the joint activities to be organised by both nations to celebrate the 55th anniversary of their diplomatic ties, and the 11th session of the Viet Nam-Algeria Intergovernmental Committee for economic co-operation, scheduled for September in Alger.

The two sides will urge their governments to create more favourable conditions for enterprises to bolster co-operation; to perfect legal frameworks; to spread market information; to make it easy for businesses to participate in international fairs and exhibitions; and to settle trade disputes.

The delegation also met representatives of the Algerian International Fair and Exhibition Centre. Ouaed Mohamed, director of the centre, called on Vietnamese enterprises to attend the various trade events in the city.

Tru said the embassy would send a list of international fairs held in Viet Nam to the centre, and pledged to facilitate Vietnamese and Algerian enterprises’ attendance at fairs and exhibitions in the two countries. 

Truong Thanh Furniture plans 44.4 million USD share issue in Q3

Truong Thanh Furniture Corporation may issue 100 million shares, worth 1 trillion VND (44.4 million USD), to raise capital for restructuring its debt and improving production.

The share issue is included in a company proposal that will be discussed at the annual shareholder meeting scheduled on June 26.

The shares will be sold to current shareholders in the third quarter of 2017 and will remain untradeable for one year from the issue date.

The share issue will help increase the firm’s charter capital to nearly 2.44 trillion VND.

The company’s management board also plans to propose to shareholders issuing 7.6 million bonus shares with the rate of 5.26 percent.

In 2017, the Truong Thanh Furniture Corporation targets 1.25 trillion VND in revenues and 35.5 billion VND in post-tax profit. The target figures for 2021 are 2.62 trillion VND and 319 billion VND, respectively.

Vietnam, Indonesia boost economic, energy cooperation

Vietnam and Indonesia boast huge potentials in energy collaboration, Indonesian Ambassador to Vietnam Ibnu Hadi highlighted at a conference held in Hanoi on June 16.

The event drew the participation of numerous Indonesian coal exporters and Vietnamese importers.

In the first four months of the year, Indonesia shipped more than 1.5 million tonnes of coal to Vietnam, he said, adding that the country will export at least 4.5 million tonnes of coal to its ASEAN peer. 

The Indonesia Embassy in Vietnam will work to promote the connection between energy businesses from the two countries to ensure sufficient supply, he stressed.

Regarding the coal demand of the Electricity of Vietnam (EVN), a representative from the group said that coal-fired power accounts for 30 percent of the total electricity generated nationwide of 42,000 MW.

Before 2016, most thermoelectricity plants used domestic coals, however, the need for imported coals has shot up due to the development of thermoelectricity. 

In 2016, the country bought 680,000 tonnes of coal from foreign countries, the figures expected to rise to 4.7 million tonnes in 2017, 11 million tonnes in 2020 and 19 million tonnes in 2025.

On the occasion, businesses from both countries exchanged experience and discussed measures to boost cooperation.

Two-way trade stood at 5.5 billion USD in 2016 and both sides are targeting 6 billion USD in 2017.

Small rice export businesses to get support from new decree

The Ministry of Industry and Trade is drafting a decree to remove bottlenecks for rice export businesses, especially small-and medium-sized enterprises (SMEs).

The decree, replacing Decree 109/2010/ND-CP on rice export and business is expected to take effect from January 1, 2018, after which businesses will enjoy free trade of rice without quantitative restrictions.

In early June 2017, the ministry signed a Memorandum of Understanding (MoU) on rice trading with Bangladesh, which is valid until 2022.

Under the MoU, Vietnam will export one million tonnes of rice to Bangladesh annually. 

This offers a huge opportunity for Vietnam to boost exports of this key staple, build a rice brand and connect with farmers.

The Vietnam Food Association authorised the Vietnam Northern Food Corporation and the Southern Food Corporation to export the rice as under Decree 109.

Director General of Trung An Co. Ltd. in the Mekong Delta province of Can Tho Pham Thai Binh said some articles in the old decree hindered the development of rice export firms.

The involvement of the Government in seeking contracts is good for Vietnamese agriculture, but all businesses should be able to join this activity to promote trade in foreign markets.

Vo Minh Khai, Director General of Vien Phu Organic – Healthy Food Company from the southernmost province of Ca Mai said revising the old decree will create a level playing-field for small rice export firms to proactively access the global market.

The new document will also enable businesses to invest in producing high-quality products to compete with rivals from Thailand and Cambodia, he added.

Vietnam has exported rice for nearly 30 years, with the first amount of 1.4 million tonnes in 1989, grossing 310 million USD in turnover.

The country earned 2.1 billion USD from selling 4.9 million tonnes of rice abroad in 2016.

Ben Tre: New cooperatives to form agricultural value chains

From now to 2020, the Mekong Delta province of Ben Tre plans to set up 27 agricultural cooperatives which will partner with businesses to form value chains for eight key agricultural products.

The targeted agricultural products are coconut, green-skin grapefruit, rambutan, longan, ornamental flowers, pig, cattle, and saltwater shrimp.

Vice Chairman of the provincial People’s Committee Nguyen Huu Lap said to improve the effectiveness of cooperatives’ activities, Ben Tre will develop cooperatives in line with the 2012 Law on Cooperatives.

It is going to help them apply scientific and technological advances in production and business activities so as to increase productivity and product quality. They will also be assisted to promote trade and seek markets.

Lap said since the Cooperative Law was enforced three years ago, a number of cooperatives operating in various spheres have been established in the province. Linkages among cooperatives and between cooperatives and other economic organisations have started to develop.

The capacity of cooperatives’ managers has also been enhanced, thus raising their operation efficiency.

Chairman of the Ben Tre Cooperative Alliance Phan Chanh Thi said 65 cooperatives and one cooperative union have been licensed in the province, gathering 30,139 members. 

The cooperatives provided jobs for more than 1,260 people whose annual per capita income is about 42 million VND (1,850 USD). Each of them gained 2.5 billion VND (110,170 USD) in average revenue.

However, he also admitted certain shortcomings in local cooperatives such as irregular popularisation of knowledge about cooperative economy and cooperatives, limited capacity, and a shortage of skilled managers.

Northern region holds major aquaculture potential: conference

Northern provinces hold considerable aquaculture potential which remains untapped, according to a conference held in Tuyen Quang province on June 16.

The northern region boasts rich natural resources along with a dense river network and a number of big hydropower reservoirs like Thac Ba, Son La and Tuyen Quang, which can serve as aquaculture grounds, according to the Directorate of Fisheries.

The current aquaculture area has just reached one-third of the potential in the region. It covered more than 200,000 ha in 2016, including over 157,000 ha of freshwater species and 47,300 ha of saltwater and brackish water species.

It generated more than 800,000 tonnes of farmed products in 2016.

The directorate said the remaining potential area for aquaculture is big, about over 454,000ha. Notably, hundreds of thousands of hectares of water surface in lakes and hydropower and irrigation reservoirs in mountainous provinces are a favourable condition for fish farming.

Deputy Minister of Agriculture and Rural Development Vu Van Tam asked localities to adjust their aquaculture plans to local potential, natural conditions and socio-economic development orientations. 

They should enhance the management of the fry quality while facilitating production under cooperative groups, cooperatives and aquaculture clubs to improve efficiency and cut production costs.

Aside from harvesting, localities also need to preserve and recover natural aquatic resources, especially rare species with high economic value, he said, adding that it is important to protect the environment for aquaculture. 

At the conference, participants discussed solutions to address obstacles to and expand aquaculture in the northern region such as developing personnel, tightening management, surveying the market, building new farming processes, producing vaccines for indigenous fish species, and issuing support policies.

Credit support programme benefits 4,000 firms in HCM City

More than 4,000 enterprises in Ho Chi Minh City were provided with credit loans worth over 124.3 trillion VND (nearly 5.47 billion USD) in the first five months of this year under a cooperation programme on credit support between businesses and commercial banks. 

The information was unveiled at a conference connecting banks with businesses in the city, which was jointly organised on June 16 by the municipal Department of Industry and Trade, the State Bank of Vietnam (SBV) in HCM City, and the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank). 

Initiated in HCM City in 2012, the programme has expanded to other localities nationwide. It was included in the National Target Programme on supporting business development by 2020. 

According to the SBV’s HCM City branch, the programme significantly contributed to promoting production and business activities of local enterprises through helping them easily access preferential loans. 

Vice Director of the SBV’s HCM City branch Nguyen Hoang Minh said the central bank will continue supervising the implementation of credits under the programme.

This year, apart from capital for the business field, the programme will focus on agriculture, high-tech businesses; start-up enterprises, and firms turned from business households.

Deputy Minister of Industry and Trade Ho Thi Kim Thoa hailed the municipal authority for its efforts to encourage commercial banks to provide their credit support for enterprises operating in support and high-tech industries and small and medium-sized enterprises, which usually meet difficulty in accessing loans.

At the conference, Vietinbank’s HCM City branch signed a credit support contract with total committed loans reaching over 8 trillion VND (352 million USD). 

From 2012 to the end of April this year, Vietinbank lent 310.8 trillion VND (nearly 13.7 billion USD) to 2,496 customers. 

From the beginning of this year,  the total disbursement of Vietinbank’s HCM City branch for local enterprises under the programme hit over 49.2 trillion VND (2.16 billion USD), leading among commercial banks joining the programme.

International workshop discusses food safety for export

An international workshop on safety criteria for Vietnamese food and agricultural produce took place in the Mekong Delta city of Can Tho on June 16.

The event drew the participation of foreign and Vietnamese experts and enterprises.

Ino Mayu, a Japanese expert on organic farming, who introduced the Seed to Table initiative into Vietnam, said human resources, particularly farmers, are key to clean food supply chains.

She said, from the experience of more than 20 years working with Vietnamese farmers, she noticed that many of them are not ready for new regulations, practices and partnerships.

They are not willing to disclose statistics on the performance of their farms and severely lack information on domestic and foreign markets, she added.

Ino Mayu said among 400 Mekong Delta households followed her organic farming model, only 20 succeeded.

She advised food traders to help farmers get used to teamwork principles and common safety standards.

Vu Kim Hanh, Chairwoman of the Business Association of High-Quality Vietnamese Goods, said the association has issued a set of criteria on high-quality exports to encourage businesses to follow domestic and international standards and build consumer trust. 

Committing to the set of criteria does not mean an enterprise qualifies for international trade, but helps it prepare the basis to grow, she noted.

Nestor Scherbey, a senior adviser to the Vietnam Trade Facilitation Alliance (VTFA), said to export food into the US, Vietnamese firms need certificates granted by an organisation recognised by the US Government.

The US is shifting its policy to preventing risks of dirty food, thus stricter regulations have been introduced, he stated.

He recommended Vietnamese exporters dig deep into these criteria to save themselves from serious problems with the US customs and agricultural body that could cost them money and access to the market.

KIDO Corporation plans big for 2017

The food group KIDO (KDC), formerly Kinh Do Corporation, has set a goal of 7.7 trillion VND (339.3 million USD) in revenue for 2017, three times higher than that of 2016.

The firm expects to earn5.8 trillion VND (255.6 million USD) from packed food products and 1.9 trillion VND (83.7 million USD) from frozen food sales in the year.

Meanwhile, it aims to raise its corporation value in food and flavour sector, a new sector that the firm has joined since 2016, through the speeding up of cooperation with partners and focusing on merge and acquisition.

It will shake hands with major regional firms in the region to shorten production time and introduce high quality products. In August this year, it will partner with a Thai enterprise to produce high quality chili sauce.

Speaking at the firm’s annual shareholders’ meeting in Ho Chi Minh City recently, Nguyen Thi Xuan Lieu, KDC Deputy General Director, the KDC has entered the food processing sector by owning 50 percent of capital of Dabaco Food.

Last year, KDC enjoyed revenue of over 2.23 trillion VND (98.2 million USD), equivalent to 124 percent of its yearly target, and a pre-tax profit of more than 1.5 trillion VND (66.1 million VND).

Rice prices increase in both domestic, foreign markets

Vietnamese rice prices have recently increased in both domestic and foreign markets due to high demand and limited supply.

Notably, Jasmine rice price is now at 565-570 USD per tonne, 65-70 USD per tonne higher compared to three weeks earlier.

At the same time, Vietnam’s 5-percent broken rice is sold at 410-420 USD per tonne, up 35-45 USD per tonne, while the price of 25-percent broken rice also rises 25-30USD per tonne to 370-375 USD per tonne. In the world market, Vietnamese rice price is only lower than Thai rice’s.

In the domestic market, rice prices of all kind also increased over 1,000 VND per kilo averagely. 

Nguyen Van Don, Director of Viet Hung Company in the Mekong Delta province of TienGiang, said the demand for Jasmine rice has surged recently, while the supply of the rice is low and some farmers are still waiting for higher price before selling their rice.

Many businesses attributed the recovery in both markets to the increased consumption in the world. Recent information on some countries’ demand to import Vietnamese rice also heat the domestic market.

Particularly, Bangladesh has signed a memorandum of understanding on rice trade and announced its demand of importing 250,000-300,000 tonnes of Vietnam’s 5-percent broken rice in the coming time and about 500,000 tonnes for the whole year, while the Philippines also revealed its plan to buy 250,000 tonnes of rice in June and July. 

According to the Vietnam Food Association, Vietnam suffered a drop in rice export in the first five months of this year. However, the export has recovered since May with rise of 27.3 percent in volume and 24 percent in value in May.

Central Highlands localities court RoK investments

Deputy head of the Steering Committee for Tay Nguyen (Central Highlands) Dieu Kre has called on businesses from the Republic of Korea (RoK) to invest in the region on the basis of potential and strength of each locality. 

He made the appeal at a seminar themed “The RoK-Tay Nguyen Meeting 2017” jointly held by the Vietnamese Foreign Ministry, the RoK Embassy and the Korea Chamber of Business (KorCham) in Buon Ma Thuot city on June 16. 

The event drew the participation of 50 Korean firms and more than 300 businesses from the Central Highlands. 

At the seminar, Central Highlands provinces introduced their potential, advantages and investment projects, mostly in high-tech agriculture, processing industry, clean energy and tourism. 

Encompassing Dak Lak, Gia Lai, Kon Tum, Dak Nong and Lam Dong provinces, the Central Highlands is regarded as an important strategic area in terms of socio-economic development, national defence and security of countries. 

Located on the trans-Asia axis, the region connects with Laos, Cambodia, Thailand and Myanmar to the west, and with central and southeast coastal provinces and deep-water seaports to the east. 

The region has a lot of potential and advantages for hi-tech agricultural and forestry development, renewable energy, and ecological and cultural tourism. 

According to the Steering Committee for Tay Nguyen, regional gross domestic product surpassed 151 trillion VND (6.56 billion USD) in 2016, up 7.47 percent annually while gross regional domestic product per capita hit 39.56 million VND (1,720 USD), up 8.5 percent. 

The region earned over two billion USD from exports, up 25.5 percent and 14.8 percent from 2015.-

HCM City lures 2.15 billion USD in FDI in six months

Ho Chi Minh City has attracted 2.15 billion USD in foreign directed investment (FDI) in the first half of 2017, doubling the figure in the same period last year, reported the municipal People’s Committee.

As many as 375 million USD was poured into 340 new projects, while 346 million USD was added to 91 existing projects.

At the same time, the southern largest economic hub also permitted 915 foreign investors to contribute capital to, buy shares or repurchase capital contributions in local firms with total sum of 1.15 billion USD.

According to the city’s People’s Committee, 124 million USD, or 33.1 percent of capital of the new FDI projects was injected into processing and manufacturing sectors, while 110 million USD, or 29.4 percent, was invested in wholesale and retail, automobile and motorbike repair, and 56.23 million USD, equivalent to 15 percent, was poured into information and communications.

The Republic of Korea was the largest investor in the first half of 2017, accounting for 26.9 percent of the total FDI. It was followed by Japan with 14.1 percent, Malaysia with 12.1 percent and Singapore with 11.1 percent.

The city’s Department of Planning and Investment is offering online investment registration services for foreign investors.

Nguyen Thi Thu Hoa, vice director of the department, said that in the first six months of this year, the agency received 612 online applications. Currently, the department is working on the second phase of the project with expanded area of investment procedures for foreign investors.

The city also expects big and prestigious businesses to invest in its high technology sector and engage in researching, training and incubating activities.

Vietnam eyes export boost through Chinese border

Vietnam should implement polices to increase its export volume through its border gates with China by taking advantage of the Vietnam-China Border Trade Agreement, experts said.

The agreement has created favourable conditions for Vietnam’s border provinces to change reasonably their economic structure, they said.

However, many experts were of the opinion that Vietnam should limit shipments of small volume of exports without legal contracts, and promote large volume of exports, as small-scale exports did not provide enterprises with incentives to improve the quality of their goods and competitive ability.

Nguyen Van Hoi, Deputy Director of the Border and Mountainous Trade Department under the Ministry of Industry and Trade (MoIT), said the trade agreement was signed in September 2016 with 16 articles to ensure an annual growth of 30 percent in the trade value of goods exported through the border gates between Vietnam and China.

The agreement will contribute partly to the socio-economic development and improvement of the living standards of the people in the border areas, he said. Vietnam’s major export goods to China include farming, forestry, seafood and fresh fruit products.

Dinh Van Thanh, former head of the MoIT’s Trade Research Institute, said the agreement was applicable for trading via border gates and border markets in seven provinces of Vietnam, including Cao Bang, Quang Ninh, Lang Son, Ha Giang, Lao Cai, Lai Chau, Dien Bien, and two China’s provinces of Yunnan and Guangxi.

Nguyen Van Son, Chairman of the People’s Committee of the northern mountainous province of Ha Giang, said the development of border gate economy and border trade is the key to economic development in Ha Giang province.

To promote border trade development, Ha Giang has received recommendations from enterprises to improve infrastructure, reform administrative procedure and create favourable conditions for attracting enterprises’ investment in border trade activities.

Thanh said the infrastructure at border gates was limited owing to the lack of investment, and the two countries have not had specific management policies for border trade activities because of which those activities had not developed strongly.

There are not enough warehouses at the border gates between Vietnam and China to meet the demand of trading activities, especially cold storage system, which has not got any investment to be built.

Meanwhile, some kind of farming and fresh fruit products of Vietnam have been exported to China, but they were not exported under contracts.

Pham Van Truong, a MoIT expert, said Vietnam should restructure the production of farming products and goods to ensure the quality of those products and promote exports with large volume. This would help avoid "saving" farm produce from plummeting prices that happened over the past time, partly due to small-scale and lack of legal contracts.

The State should have specific solutions to provide market and capital support to enterprises, said Truong, adding that the State should continue negotiations with China to expand the market for Vietnamese goods by facilitating contracts for large exports.

Thanh said Vietnam should establish a border business association to protect the interests of local enterprises engaged in trading activities with China, as well as other countries.

The Government needs to upgrade infrastructure for trading activities at border gates, creating favourable conditions for border trade development, he added.

On the other hand, he said Vietnam must diversify its forms and methods of trade promotion with neighbouring countries and perfect a database of information on border trade activities for managing those activities.