Vietnam Airlines rearranges check-in areas for priority passengers

The national flag carrier Vietnam Airlines announced on April 20 that it will rearrange check-in areas for priority passengers. 

They include business and premium economy-class passengers, and members of the Golden Lotus programme and SkyTeam alliance who will do check-in procedures in counters  exclusively designed for them. 

The move aims to improve its four-star services up to Skytrax standards. 

Accordingly, new priority check-in areas will be available in Hanoi’s Noi Bai international airport, Ho Chi Minh City’s Tan Son Nhat international airport, and Da Nang, Cam Ranh (Nha Trang) and Vinh airports, and foreign airport in Frankfurt (Germany), Moscow (Russia), Tokyo (Japan), Sydney and Melbourne (Australia), Seoul (the Republic of Korea), Taiwan, Hong Kong (China), Siem Reap (Cambodia), Bangkok (Thailand), Singapore, Kuala Lumpur (Malaysia) and Jakarta (Indonesia). 

On April 9, the world’s largest travel review website TripAdvisor named Vietnam Airlines as one of the best airlines in Asia in the annual Travellers’ Choice Major Airlines – Asia 2018 awards.

National, Asia-Pacific quality awards bestowed on 77 firms

A ceremony was held in Hanoi on April 22 to honour 77 enterprises which won the 2017 National Quality Awards and International Asia Pacific Quality Award (IAPQA).

The National Quality Awards is the only one of its kind approved by the Prime Minister and included in the IAPQA system by the Asia-Pacific Quality Organisation. It is an annual award to honour businesses with outstanding operations in boosting the quality and competitiveness of products and services amid regional and global integration.

Up to 73 enterprises won the 2017 National Quality Awards. Among them, 15 received the National Quality Gold Awards, including Binh Minh Plastic JSC, Binh Dinh Pharmaceutical and Medical Equipment JSC, and Fico Tay Ninh Cement JSC, while 58 took the silver awards. 

Four IAPQA winners of the year were Ton Dong A Corporation, Khanh Hoa Salangane Nests Company, Viet Duc Steel Company, and Long Hau Corporation.

Minister of Science and Technology Chu Ngoc Anh said in a bid to optimize the national award’s impacts, firms should be encouraged to consider it a performance assessment tool for comprehensive improvement and increased competitiveness.

He said technological innovation and modern management systems are also key to boosting business productivity and competitiveness, adding that the Vietnamese Government will build policies and programmes on quality-productivity, technology transfer, and intelligent assets development.

By 2017, 1,842 enterprises won the National Quality Awards and 44 others obtained the IAPQA.

Vietnam, Malaysia seek to boost livestock product import-export

Measures to promote import-export of livestock products between Vietnam and Malaysia was the focus of a seminar held in Kuala Lumpur, Malaysia, on April 21.

The event saw the participation of representatives from the Vietnamese Ministry of Agriculture and Rural Development (MARD); the Vietnamese Embassy and Commercial Affair in Malaysia; Malaysia’s Ministry of Agriculture and Agro-based Industry; and those from leading enterprises in processing, exporting and importing livestock products of the two countries.

In his opening speech, Deputy Minister of MARD Tran Thanh Nam said the livestock cooperation between Vietnam and Malaysia still remains modest compared to the potential, and opportunities and mechanisms for businesses of the two sides to strengthen links is limited.

He hoped that through the seminar, authorities and enterprises of the two countries would understand more about each other's situation and abilities, thus proposing ways to enhance cooperation between the two countries in the field. 

Vietnamese enterprises such as Vinamilk and Minh Dang Groups introduced their activities and products. They said their products could meet the demand of the Malaysian market, expressing their wish to set link-up with Malaysian partners, towards exporting their products to the country in the near future. 

Meanwhile, Malaysian businesses expressed their interest in some Vietnamese products such as beef, milk, dairy products, and animal feed. 

They revealed that Malaysian dairy and beef firms respectively meet only about 60 percent, and 23 percent of the domestic market demand. 

The Malaysian side affirmed it would consider the possibility of collaborating with Vietnamese partners to import those products in the coming time. 

Malaysian enterprises also said they could cooperate with Vietnamese firms through providing technologies of processing and preservation of livestock products, and veterinary medicine. 

Previously, on April 20, Nam had a working session with representatives from the Malaysian Ministry of Agriculture and Agro-based Industry, during which the two sides discussed measures to boost their agricultural and breeding collaboration.

T&T Group violation may fetch $44,052 fine

T&T Group may be fined for up to VND1 billion ($44,052) for constructing three additional floors to its high-end trade and service building in the central province's Nghe An's Vinh city.

T&T Group’s high-end trade and service building located in Vinh city received the building permit in early 2017 from the Nghe An Department of Construction with the approved detailed construction plan of 86.75 metre overall height, including 25 apartment floors and one technical floor.

According to Article 13(8) of Decree No.121/2013/ND-CP, for the acts specified in clauses 3, 5, 6 ,and 7 of this Article, after repeated aministrative violations, depending on the degree of violation and the scale of works, a fine between VND500 million ($22,026) and VND1 billion ($44,052) shall be imposed and the building permit shall be withdrawn.
When the construction was at the 17th floor, T&T Group sent a document to the Nghe An People’s Committee to adjust the building height’s from 25 to 28 floors. Accordingly, in May last year, the Nghe An Department of Construction issued Document No.1069/SXD–QLHDXD providing instruction on procedures for adjusting the building’s height.

However, despite the local Department of Construction’s guidelines, T&T Group simply went ahead adding the floors without finishing the necessary procedures.

On June 12, 2017, the Nghe An Department of Construction inspected the project, then discovered that the 26th floor was being constructed.

Shortly afterwards, the department ordered T&T Group to stop construction and only continue after receiving authorization from relevant authorities.

Vinh city’s urban management authorities on June 27, 2017 discovered that T&T Group has been ignoring the department’s orders and was constructing the 28th floor already.

According to Phan Thanh Son, leader of Vinh city’s Urban Inspection Team, after the Vinh City People’s Committee issued Decision No.4078/QD-UBND to issue administrative sanctions against T&T Group for intentionally violating its building permit licensed by the Nghe An Department of Construction on January 6, 2017, T&T Group only paid a fine of VND40 million ($1,762). However, to date, there are no plans to resolve this case satisfactorily.

Meanwhile, an inspector of the Nghe An Department of Construction said that if the province initiated proceedings on this violation on construction regulations, T&T Group may be fined up to VND1 billion.

Vietnam, China businesses partner in watermelon consumption

Nearly 100 Vietnam and China businesses have signed a cooperation deal to sell water melon and some other special farm produce from the central province of Quang Ngai

At a signing ceremony in Quang Ngai on April 17, vice chairman of the provincial People’s Committee Nguyen Tang Binh asked the Chinese businesses to provide essential information regarding the setting up of a stable distribution and circulation network for agricultural products, thereby helping them become a reliable partner of local farmers.

Head of the Domestic Market Department under the Ministry of Industry and Trade Tran Duy Dong said China has traced the origin of Vietnamese fruits since April 1, 2018. 

The Ministry urged all relevant businesses and agricultural co-operatives to meet requirements of a safe production process to boost their sales of farm produce in the market.

The Ministry also asked local authorities to guide agricultural production according to plans and minimize spontaneous production, which has  recently resulted in a supply surplus, said Mr Dong.

Last year, Vietnam’s total water melon output reached 1.5 million tons with an export value of more than US$95 million, of which China made up nearly 90%.

Canada offers huge opportunities for Vietnam wood processing sector

Vietnam is Canada’s fourth largest supplier of wood furniture with a market share of 12.9% of the country’s total wood furniture imports.

The Industry and Trade Information Centre (VITIC) under the Ministry of Industry and Trade says the wood processing sector is advantageous in product supply and demand in the Canadian market.

According to Statistics Canada, the country’s furniture imports hit US$184.5 million in January, up 14.2% against the same period last year with major markets as China, the US and the EU.

Vietnam exported US$23.76 million worth of furniture products to the market in January, a year-on-year rise of 30%.

Canada’s wood furniture imports are increasing sharply as the domestic industry has reduced production which is uncompetitive against that in lower cost countries, including Vietnam.

In addition, many tax lines will drop to zero after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), of which Vietnam and Canada are members, comes into effect.

Canada wood industry is very strong with an annual productivity of 600 million cu.m. There are huge opportunities for Vietnamese businesses to import wood materials and boost exports of wood products to the market if they can take advantage of CPTPP tariff preferences.

Da Lat targets breakthrough in flower export

Flower farmers in Da Lat City, located in the Central Highlands province of Lam Dong, are overcoming technical challenges to produce export-quality flowers.

Situated in a plateau around 1,500 meters above sea level, Da Lat enjoys year-round cool weather which stands in contrast to Vietnam's tropical climate, making the city ideal for growing high-value flowering plants originating in temperate countries.

Da Lat is one of Vietnam’s biggest flower-growing regions, producing around three billion flowers every year, 10% of which are exported to foreign markets including Japan, the Republic of Korea (RoK), Taiwan, Australia and China.

In recent years, small and medium-sized flower farms in Da Lat have joined bigger, foreign-invested firms in exporting floricultural products, which contributed to the city’s remarkable flower export growth.

Between 2015 and 2017, Da Lat reported a yearly increase of 18-30 million in exported flowers.

Japan is the city’s largest flower market, importing around 60% of its production, with Australia, (RoK), Belgium, Thailand, the Philippines, Singapore, Russia and Cambodia being other major markets.

According to Pham S, deputy chairman of Lam Dong Province, there is around 9,000 hectares of flower-growing land in Da Lat, capable of meeting the city’s goal of shipping 400 million flowers yearly over the next five years.

However, as Da Lat’s floricultural industry grows, plant variety rights are quickly becoming a “deadly weakness” for small exporters, said Phan Thanh Sang, president of the Da Lat Flower Association.

Plant variety rights, or plant breeders’ rights, are rights granted to the breeder of a new variety of plant that give the breeder exclusive control over the propagating material and harvested material of a new variety for a number of years.

90% of household flower growers in Da Lat are using seeds that violate these protected rights, which hurts their chances of exporting harvested products to developed markets, Sang said.

In reality, many opportunities to export flowers to Japan have been missed when farmers were unable to answer questions regarding the breeder of their flower variety posed by officials from the Japan Externaal Trade Organization (JETRO).

Meanwhile, farmers are still having difficulties getting access to flower varieties that are no longer protected by breeders’ rights, said Vo Quoc Khoa, director of flower company Dalat Green.

To cope with this setback, the administration of Lam Dong Province has introduced a model where major companies partner with local farmers by providing them with quality flower seeds and growing techniques, in exchange for harvested crops.

The province is looking to launch a flower exchange and online platforms where foreign importers can place orders for Da Lat-grown flowers online.

Vietnam spends over VND52 billion on daily imports of pesticides

Vietnam spends more than VND52 billion importing pesticides every day, with more than 50% of that money going to China, according to the latest statistics from the General Department of Vietnam Customs.

Despite a decline compared to the same period of last year, pesticide imports hit over US$208 million during the first quarter of this year. Imports from China fell off by VND3 billion per month but the high import value of the sensitive product remains a matter of concern.

It’s noteworthy that eco-friendy pesticides are incapable of competing with Chinese products in terms of price due to the price subsidy policies, and the presence of counterfeit brands and packaging of foreign products.

The Plant Protection Department under the Ministry of Agriculture and Rural Development reports that Vietnam has around 1,700 pest control chemicals used in 4,080 products.

However, in addition to pesticides, the agricultural industry has to import fertilisers from other countries. Up to the end of March, Vietnam imported more than 940,000 tons of fertiliser worth over US$262 million, of this, 309,000 tons were bought from China at a value of US$78 million.

73 enterprises to receive National Quality Award 2017

Seventy-three enterprises will be honoured with the National Quality Award for their outstanding performances in 2017.

The announcement was made at a press conference to introduce the awards on April 17.

Of the 73 enterprises, 15 received National Quality Gold Awards, while 58 others secured Silver.

Speaking at the conference, Deputy Minister of Science and Technology Tran Van Tung said the National Quality Awards are the only awards of their kind approved by the Prime Minister and included in the International Asia Pacific Quality Award (IAPQA) system by the Asia-Pacific Quality Organisation.

The annual award aims to honour enterprises for their outstanding operation in boosting the quality and competitiveness of their products and services amid regional and global integration, he noted.

Four Vietnamese enterprises also received the IAPQA award in 2017.

The ceremony to honour the 2017 winners of the annual National Quality Awards and International Asia Pacific Quality Award (IAPQA) is scheduled to take place in Hanoi on April 22.

Trung Luong-My Thuan Expressway to get funds for construction in May

The investor of the Trung Luong-My Thuan Expressway project is in talks with five banks to take out funds next month for developing the long-delayed project, heard a meeting between the investor and authorities last weekend.

Vu Tuan Anh, deputy director of the Public-Private Partnership Department under the Ministry of Transport, told the meeting that the lack of capital is the biggest problem arising in the execution of the project. The problem is to be smoothened out soon as the investor is in talks with banks for the needed capital, Anh told the meeting between the project investor, the Ministry of Transport and Tien Giang Province’s government.

The project requires a total investment of nearly VND9.7 trillion, or some US$426 million, and the investor has secured VND1.5 trillion, with most of it for site clearance.

The investors expect to conclude negotiations with lender banks by the middle of May, and credit agreements are expected to be signed prior to May 31 to secure capital for the project.

Phan Anh Dung, director of BOT Trung Luong-My Thuan JSC, said that to lessen the burden of capital cost in mobilizing capital, the investor has signed an agreement with HCMC Infrastructure Investment JSC (CII) for a loan of VND958 billion. CII has had VND300 billion and is raising VND658 billion from a bond sale to the State Capital Investment Corporation (SCIC).

The remaining VND7.2 trillion is expected to come from Vietnam Bank for Industry and Trade (VietinBank), Bank for Investment and Development of Vietnam (BIDV), Vietnam Bank for Agriculture and Rural Development (Agribank), Vietnam Prosperity Commercial Bank (VPBank) and Military Bank (MB).

As for the project progress, 13 out of 21 packages have already been commenced.

Deputy Minister of Transport Nguyen Nhat said the project was launched in 2015, but it was later adjusted with the road widened to 17 meters to accommodate four lanes and fit the North-South Expressway, instead of two as originally planned.

Nhat has urged the investor to accelerate the project implementation. The project is expected to be opened to traffic in 2020 to facilitate traffic on a section from Cai Be District to Trung Luong T-junction of National Highway 1A.

Trung Luong-My Thuan is part of HCMC-Can Tho Expressway which has three sections, namely HCMC-Trung Luong, Trung Luong-My Thuan and My Thuan-Can Tho.

Trung Luong-My Thuan Expressway will stretch 51 kilometers plus 4.5 kilometers of access road. It will start from the intersection of Than Cuu Nghia T-Junction and HCMC-Trung Luong Expressway and end at the crossroads with National Highway 30.

According to the initial plan, the expressway would be divided into two phases. In the first phase, the expressway would have two lanes plus emergency lanes and will be implemented under the build-operate-transfer (BOT) format. It would be then expanded to six lanes using official development assistance loans in the second phase.

The expressway was initially scheduled for completion at the end of this year, but due to the capital shortage, the project has not got off the ground.

The expressway, when in place, will substantially reduce traveling time between HCMC and the Mekong Delta.

HCM City departments join forces to seek funds for tourism startups

A cooperation program to be held this year between the Department of Science and Technology and the Department of Tourism will help raise funds of up to VND20 billion for tourism startups.

The two departments, on the occasion of launching the Ho Chi Minh Innovative Startups in Tourism contest, signed a memorandum of understanding on Sunday to rally support for startups in tourism, and raise funds for viable projects.

Under this agreement, the two sides will call for enterprises, colleges, institutes and investors to jointly work toward promoting innovation in tourism, gather and arrange mentors for startups, and organize events to connect experts and investors with such startups. The two departments also target to create a fund of VND20 billion for startup projects.

The startup contest is specially designed for startup projects nationwide so as to discover those having sound solutions, feasible products and high technological contents aligned with the city’s tourism development. The contest will last from this month to November 2018 with four rounds, comprising of the preliminary selection, the competition among projects, mentoring, and the finale being an award ceremony to honor outstanding projects.

The finale is scheduled to take place in October 2018 to coincide with the HCMC Innovative Startups Week which will be organized by the HCMC Department of Science and Technology.

Projects or startup ideas enrolled in the contest will receive training, mentoring to perfect business models, develop products, approach investors, and have a chance to receive funding worth VND2 billion from SpeedUp, the city’s fund for supporting startups projects.

In late 2016, the HCMC Department of Science and Technology announced a program to support Innovative Startups from 2016 to 2020. SpeedUp, as part of the program, will fund VND2 billion per viable project registered for business in the last five years but yet to have financial support from the State.

The program lasting from 2016 to 2020 aims to connect businesses, colleges, institutes, and training centers to boost the development of an innovative startup ecosystem in the city.

Da Nang joins national efforts to tackle IUU yellow card

The central city of Da Nang is stepping up the dissemination of legal regulations on offshore fishing activities to curb illegal, unreported and unregulated (IUU) fishing in order to tackle the European Commission’s IUU yellow card.

Dang Duy Hai, deputy head of the city’s Fisheries Sub-department, said the municipal Department of Agriculture and Rural Development has worked with relevant offices to instruct fishermen to conduct legal fishing by organising classes on relevant laws.

To date, seven classes have been held, attracting representatives from 20 export enterprises and nearly 400 fishermen who are ship owners or captains.

However, Hai said that the declaration of seafood origins is facing many difficulties, as some fishermen want to hide their fishing grounds and locations.

Stressing the importance of origin declaration, Nguyen Lai, a representative from the city’s Tho Quang Navigation Lock And Fishing Port Management Board, said the management board has taken measures to trace seafood origin and punish violators.

Since the beginning of this year, Tho Quang market has conducted 6,996 origin declarations on a total of 24,500 tonnes of seafood of all kinds, Lai added.
 
Fisherman Nguyen Vu said that he has got used to keeping track of his catches, because when the EU tightens regulations on businesses, businesses will tighten regulations on fishermen.

Therefore, if fishermen do not provide a fishing diary, firms would not purchase their seafood, Vu said. He added that there should be closer links between fishermen, local authorities and businesses to facilitate the granting of certification for seafood catches.

In September 2017, the European Commission issued a yellow card warning Vietnam for failing to progress in fighting IUU fishing. 

The EU will assess Vietnam’s efforts to fight IUU fishing in late April. The "yellow card" is followed by a "green card" if the problem is resolved or a "red card" if it isn’t. A “red card” can lead to a trade ban on fishery products.

Together with Da Nang city, localities along the Vietnamese coast are exerting efforts to fight IUU fishing.

Ambassador affirms Japanese investors’ interest in Mekong Delta

Many Japanese investors are keen on investing in the Mekong Delta, Japanese Ambassador to Vietnam Umeda Kunio affirmed at a conference in Can Tho city on April 18.

The conference, aiming to connect Japanese partners with the 12 provinces and Can Tho city of the Mekong Delta, drew more than 160 Japanese businesses, more than 50 of which came to Vietnam for the first time.

Cooperation potential in transport infrastructure development was among the main issues attracting participants’ attention.

Luu Quang Khanh, Director of the Ministry of Planning and Investment’s Department for Foreign Economic Relations, said the Mekong Delta has a favourable intra-regional transport system helping connect many localities within the region and support development. This system also links the Mekong Delta, located in the southwest of Vietnam, with the southeastern region, especially Ho Chi Minh City, and other regions in Vietnam and neighbouring countries.

He noted despite those advantages, the Mekong Delta hasn’t attracted much investment from Japan due to asynchronous infrastructure linking the whole region with other regions and linking production areas with consumption markets.

Konaka Tetsuo, Chief Representative of the Japan International Cooperation Agency in Vietnam, said to help southwestern localities solve transport problems, research organisations of Japan are ready to transfer bridge and road models using Japan’s high-quality materials and advanced technologies to the Mekong Delta.

Japan will also help local authorities seek capable investors to partner in developing arterial transport projects like My Thuan – Can Tho Expressway, Trung Luong – Can Tho Expressway and the National Road 30 expansion, he added.

Regarding tourism cooperation, Takahashi Ayumi, Chief Representative of the Japan National Tourism Organisation (JNTO) in Vietnam, said the number of Vietnamese tourists to Japan and vice versa has grown strongly over the last 10 years, about 30 percent year on year.

However, Japanese arrivals in the Mekong Delta remain modest, partly because tourism promotion activities of the localities have yet to truly access tourists. Most Japanese tourists just visit big cities like Hanoi, Ho Chi Minh City and Da Nang.

He said to address this problem, the JNTO will work with local administrations to hold cultural exchanges with arts programmes and exhibitions of the Mekong Delta’s traditional products to introduce local culture to the Japanese. It will also connect the local tourism sector with the Japan Association of Travel Agents to share information about tourists’ taste.

On agricultural ties, Takimoto Koji, Chief Representative of the Japan External Trade Organisation in HCM City, pointed out that although the Mekong Delta boasts many advantages of agricultural and aquatic products, cheap land prices and low labour costs, it lacks effective connectivity among localities.

He said the region lacks suitable development strategies to optimise production chains, boost product quality and productivity, and diversify products to meet demand.

Appreciating Koji’s opinions, Director of the Department for International Cooperation of the Ministry of Agriculture and Rural Development Tran Kim Long said Vietnam is working to turn the Mekong Delta’s agriculture into a smart and sustainable one.

The country hopes for assistance from Japanese partners in applying new technologies, especially bio-technology, in aquaculture, rice cultivation and fruit farming to enhance product quality and value. Vietnam also wants help to adapt agriculture to climate change, the official noted.

Asazuma Shinichi, envoy of the Japanese Embassy in Vietnam, said many agricultural businesses of Japan are seeking cooperation with Vietnamese firms, including those in the Mekong Delta. 

Leaders of the region need to understand investors’ demand and improve the local investment climate. The Japanese Embassy will support the organisation of annual conferences to introduce the Mekong Delta’s investment environment to foreign investors.

Northern provinces propose promoting litchi, longan exports

The northern provinces of Bac Giang, Hung Yen, Hai Duong and Son La have proposed boosting exports of litchi and longan to foreign markets, including China.

The proposal was the key topic of discussion at an annual conference in Hanoi on April 18 on the production and distribution of these two main fruit products in northern areas.

Per the request, the Minister of Agriculture and Rural Development (MARD), Ministry of Industry and Trade and Ministry of Foreign Affairs will arrange talks with their Chinese counterparts to promote Vietnamese fruits’ entrance into the country, via negotiation, plant quarantine agreements and removing technical barriers.

Minister of Agriculture and Rural Development Nguyen Xuan Cuong expressed determination to help the provinces sell their products at home and abroad. 

Nguyen Hong Son, head of the MARD’s Crop Production Department, said domestic litchi and longan consumption accounts for about 50 percent of output, albeit this number is on the rise, mainly in urban areas.

Therefore, it is necessary to focus on these markets, by connecting producers with chain distributors and wholesale markets, while keeping current importers satisfied, such as China, the US, Japan and Australia.

He said that Vietnamese agricultural products are still accepted in China with little obstacles regarding regulations on origin and plant quarantine.

Hoang Trung, Director General of the MARD’s Plant Protection Department (PPD), said this year, his unit will conduct its first on-site tests for litchi and longan crops during the harvest season in the provinces.

The PPD will arrange mobile quarantine rooms in concentrated areas to issue certificates on the spot for exporting enterprises, instead of doing so at the border. This will help reduce congestion and shorten clearance time at the border, said Trung.

The department has also been negotiating for higher fruit exports quota to Japan and the Republic of Korea, as many Japanese and Korean companies are keen on importing these fruits.

Meanwhile, Nguyen Thi Thu Ha, Vice Chairwoman of Bac Giang provincial People’s Committee, said her constituency considers litchi the key driver for economic development. 

As current local production accounts for nearly 29,000 hectares, 2018’s output is estimated at 150,000 to 180,000 tonnes, nearly double last year’s number, said Ha.

Such abundant yields, coupled with short harvesting time, storage and transportation difficulties, have pressured the province to find an appropriate consumption market. 

At present, the Chinese province of Guangxi has requested proof of traceability for Vietnam’s agricultural products, which means the province must negotiate with Chinese partners to resolve any remaining difficulties.

On the same note, Tran Cong Truong, Vice Chairman of the Lang Son provincial People’s Committee, said China had asked his province to impose tighter controls on agricultural goods entering China via Lang Son border gate.

Starting May 1 this year, farmers will be required to provide proper packaging and product labels in order to export to China.

To meet the requirements of traditional export markets and to expand to new markets for fruit and nuts, Vietnam needs to improve its activities in terms of quality, design and food safety.

Dinh Cao Khue, General Director of the Dong Giao Foodstuff Export Joint Stock Company, said that his company has about 5,000 tonnes of processed litchi ready for export, with prospects for fresh exports as well.

Khue was confident that Vietnamese products are strong enough to compete with other countries’, though they still need promotions abroad.

Litchi and longan are the two main fruit-bearing crops in northern provinces, with a total area of 98,000 hectares, accounting for 27 percent of total agricultural harvest, whose accumulated output is estimated to exceed 217,000 tonnes in 2018.

Leading brands join HVACR Vietnam 2018

More than 200 brands and companies from 12 countries and territories are showcasing their products at the 12th International Exhibition on Heating, Ventilation, Air-Conditioning, Air Filtration & Purification and Refrigeration System (HVACR Vietnam 2018), which opened in Hanoi on April 18.

The exhibition, held by the Informa Exhibitions and VINEXAD, features an extensive variety of products and technologies from local and international exhibitors from mainland China, India, Malaysia, the Republic of Korea, Singapore, Taiwan (China), Thailand, Turkey and the US.

At the opening ceremony, Le Hoang Tai, Deputy Head of the Trade Promotion Agency under the Ministry of Industry and Trade, noted that freedom of trade and economic integration requires high-tech products and modern management and production processes.

Thus, the exhibition offers good opportunities for domestic and foreign producers and businesses to exchange experience and expand cooperation in applying technology in production to improve their competitiveness, contributing to developing the industry sector and accelerating Vietnam’s economic integration, he noted.

Meanwhile, General Manager of Informa Global Exhibitions Asia Jack Wei said the event is expected to bring stable business value to the supply chain while creating momentum to develop green building and enhance energy efficiency.

HVACR Vietnam is a trusted exhibition for heating, ventilation, air conditioning, air filtration and purification and refrigeration technology systems. To date, there have been 11 editions, all in HCM City.

This is the first time the exhibition has been held in Hanoi. To cater to the demand of the local market, the organisers have decided to rotate the exhibition between the two cities, with Hanoi hosting it on even-numbered years and HCM City on odd-numbered years.

The exhibition will run until April 20 at the National Exhibition Construction Centre, No.1 Do Duc Duc Street, Hanoi.

Myanmar’s regulations hinder trade with Vietnam

Many Vietnamese firms have shifted their focus to new markets like Myanmar but doing business in the once-isolated nation is not easy, largely due to its poorly-crafted business regulations.

Vietnam is one of the first countries to promote trade with Myanmar, said Vu Cuong from the Ministry of Industry and Trade, adding that made-in-Vietnam goods are popular among Myanmar consumers due to their quality and prices.

However, Vietnamese exporters have experienced bumpy rides shipping their products to Myanmar. According to Cuong, in addition to high transportation costs, Vietnamese products are facing stiff competition from similar ones from countries such as China and Thailand.

Legal issues remain one of the biggest barriers for doing business in Myanmar, said Nguyen Thanh Nam, director of Viettel Myanmar. Military-run group Viettel is the largest Vietnamese investor in Myanmar with total committed investment of approximately 1.4 billion USD to develop a mobile network joint venture.

In Vietnam, building a base transceiver station only requires two or three permits from the local departments of information and communications and construction. But to do this in Myanmar, a company must apply for up to seven permits, from local people to authorities at different levels, Nam explained.

Even after getting approval from the government, ministries and other public agencies, a foreign firm must continue working with state and district governments to complete a number of other administrative steps, he added.

As Myanmar has just started opening its economy, it has to regularly amend the legal system. Hence, firms have to be active to keep abreast of changes, the director noted. 

Echoing Nam’s view, Dang Hai Nha, Director of the Bank for Investment and Development of Vietnam (BIDV), Yangon branch, said many legal documents in Myanmar are too general and briefly explained, making them difficult for businesses to comprehend.

Cuong from the Ministry of Industry and Trade suggested the Vietnamese producers put more efforts into improving the quality of their products and studying local consumer culture. They must also invest in branding and label their products in Myanmar or English languages to better inform customers.

According to the Ministry of Industry and Trade, trade between Vietnam and Myanmar has grown steadily in recent years. Two-way trade expanded at an average pace of 27.3 percent annually from 2010-2016. The two countries saw a year-on-year surge of 50.9 percent in trade to 828 million USD last year. 

Since 2012, Vietnam has enjoyed a trade surplus with Myanmar which was estimated at 375 million USD in 2017. But trade with Myanmar only accounted for 0.2 percent of Vietnam’s total foreign trade and less than 2 percent of Vietnam’s trade with ASEAN nations.

Vietnam mostly exports telephones and accessories, iron and steel products, vehicles and parts and machinery to Myanmar while main imports include fruits and vegetables and maize.