Rising food costs bump up CPI in major cities

Consumer price indices (CPI) in the country's two largest cities continued to increase in October due to surging food prices after floods and heavy rain.

Ha Noi saw an increase of 0.57 per cent over the previous month, while the index for HCM City rose 0.17 per cent.

This month's CPIs for Ha Noi and HCM City saw year-on-year surges of 6.25 per cent and 4.89 per cent respectively.

Ten out of 11 commodity groups saw a growth in price compared to the previous month with food and restaurant services posting the strongest rise of 1.01 per cent.

Housing, electricity, water and building materials saw an increase of 0.7 per cent. Food prices rose 2.96 per cent.

The price of clean water started to go up from the beginning of this month, contributing to the increasing CPI.

Prices of garments and textiles also slightly increased as the north anticipated the coming of winter.

Telecommunications and education sectors retained their rise over the previous month.

Transport was the only group to post a decrease, which was 0.24 per cent.

In HCM City, increased prices were reported for seven out of 11 goods and services.

Food and restaurant services took the lead with an increase of 0.41 per cent, followed by garments and shoes (up 0.29 per cent), education (0.22 per cent) and housing, water and building materials (0.19 per cent). Prices of transport, telecommunications, entertainment, tourism and other services declined.

Many new cars, concept vehicles at motor show

The ninth Vietnam Motor Show will officially be open to visitors today with many new car products, sport and concept cars to be introduced in Vietnam for the first time.

With the message ‘Together to Success’, the Vietnam Motor Show 2013 has the participation of 15 auto trademarks.

Among these, Ford, GM, Honda, Mercedes-Benz, Toyota, Suzuki, Hino and Vinastar are the eight members of the Vietnam Automobile Manufacturers Association (VAMA). Besides, there are BMW, Land Rover, Audi, Renault, Nissan and this is the first time for Lexus and Infiniti to attend the show.

This year’s motor show showcases imported and luxury cars of several leading auto manufacturers. However, names which have been present in the Vietnamese market for a long time like Truong Hai Kia, Hyundai Thanh Cong, Vinaxuki and Porsche do not attend the show.

In addition to new cars introduced for the very first time in Vietnam, concept vehicles such as Toyota Fun-Vii, Honda Urban Concept, Mitsubishi GR-HEV Hybrid Concept and the sport utility vehicle Chevrolet C6 Coupe are being displayed at the Vietnam Motor Show 2013.

Besides, at the show visitors can also look for information about supporting industries and auto accessories of various brands as well as banking and insurance information.

Metelo Arias, general director of Ford Vietnam and chairman of VAMA, said that the auto industry has recovered much since the year’s beginning with 77,000 units sold in the January-September period, up 18% year-on-year.

The organizers expect to attract around 150,000 visitors to the Vietnam Motor Show 2013 which will last until Sunday at Saigon Exhibition and Convention Center in HCMC’s District 7.

Vietnam targets green, sustainable economy

Low-carbon development is the core issue of the National Green Growth Strategy, heard a seminar.

Vietnam wants to reduce greenhouse gas emissions by 8-10 percent during the 2011-2020 period.

To realise the goal, experts are gathering at a seminar which opened on October 24 in the Red River Delta province of Thai Binh to share experiences in the field, and talk about the linkage between the strategy and the country’s poverty reduction target.

Based on this, experts will work out plans and design an action programme to speed up the implementation of the Low Emission Development Strategies (LEDS), for which Vietnam is chosen as one of the four nations to carry out the project.

Co-organised by Vietnam’s Central Institute for Economic Management, the German Friedrich-Ebert-Stiftung (FES) Institute, the World Wide Fund for Nature (WWF) and the German organisations Green ID and Bread for the World, the seminar will run until October 26.

Textile, garment equipment exhibition opens

The Viet Nam International Textile and Garment Industry Exhibition opened yesterday in HCM City with the participation of 200 companies.

The four-day event also includes a Textile and Apparel Accessories fair.

Exhibitors come from 12 countries and territories such as China, India, Japan, South Korea, Taiwan and the US.

The companies are marketing their products at 360 booths, products including machines for spinning, knitting, yarn processing, cloth cutting, sewing, laundry, chemicals and garment accessories.

"The textile and garment industry plays an increasingly important role in the country's industrialisation, contributing to economic development and meeting domestic and export demands, as well as promoting the development of other industries," said Phan Thi Thanh Minh, head of the Southern Operation Department under the Ministry of Industry and Trade.

"The companies have real demands for advanced machinery and stable material sources to ensure sustainable growth," she added.

The organisers, the Viet Nam Exhibition and Advertising Co and Taiwan's Chanchao, expect the event will attract 16,000 visitors seeking advanced machinery and technology to improve their product quality.

The event venue is at the Tan Binh Exhibition and Convention Centre, 446 Hoang Van Thu St, Tan Binh District.

SBV restarts USD buy-back scheme

The State Bank of Viet Nam has resumed buying back US dollars from commercial banks after nearly two months of interruption, the forex manager of a State-owned bank told VnEconomy online news.

The manager, whose bank sold a considerable volume of the foreign currency to the central bank, said that the amount was quite large.

Investment institutions also reported that commercial banks had sold the foreign currency for the past few weeks.

A senior official from the central bank confirmed the information but declined to disclose the purchased volume.

However, the official said the forex liquidity of the whole banking system was still positive, explaining that the central bank bought the greenbacks only from commercial banks whose dollar liquidity was very good, ensuring that the sales would not cause a supply shortage.

Industry insiders said that the purchase helped give the central bank a new supply to offset the dollar sources spent on gold imports and stabilising the forex market in June.

The move was made when the exchange rates fell rapidly and supply was favourable.

Yesterday dollars were being traded at VND21,075 by commercial banks, below the bid price of VND21,100 quoted by SBV's Central Banking Department.

In August, as exchange rates rapidly declined, the Central Banking Department raised the bid price from VND20,826 to VND21,100.

From late August to early October, SBV did not buy foreign currency despite good liquidity in the market and the relatively stable exchange rates.

According to Government reports released this week at the National Assembly meeting, the country's foreign currency reserve climbed to the equivalent of 12 weeks of imports in late 2012 to 2013, against 6.5 weeks in 2011 and six weeks in 2010.

If calculated on the average week of imports in the first nine months this year, the country's foreign currency reserves could reach a record high of US$32 billion.

Auto show strikes upbeat note

At least 15 automobile brands, many providers of a wide range of support industry products and services, banking and insurance firms are participating in the 5-day Viet Nam Motor Show that opened yesterday at the Saigon Exhibition and Convention Centre in District 7.

Le Duong Quang, Deputy Minister of Industry and Trade, said that the show has brought to Viet Nam the latest auto models and environmentally-friendly technologies.

It has also aided local automobile producers in their efforts to increase their made-in-Viet Nam component ratio, he said.

The exhibition, one of the most prestigious and awaited events of the year for the automobile industry, focuses this year on products which are convenient, economical, eco-friendly and user-friendly, organisers said.

They said the show is also a chance for auto brands to offer a range of services and sales promotions to boost the Vietnamese automobile industry.

The exhibition, which covers nearly 9,000sq.m, includes many booths with impressive products and interesting interactive activities.

Toyota Motor Viet Nam is showing off its product line-up including special editions of six favoured models, putting forth a more youthful, sporty image while stressing additional safety equipment.

Concept vehicle Toyota Fun-Vii heralds a not-too-distant future where people, cars and society are interlinked.

The most luxurious Toyota brand name, Lexus, will officially be imported into Viet Nam very soon. Five of the top Lexus models are on display at the exhibition.

Meanwhile, Mercedes Benz celebrates its "vision accomplished" concept with 18 cars, the largest fleet at the Motor Show, including newest line-ups.

The company has announced that it has already met its 2013 sales target despite the sluggish state of the market.

At the BMW booth, visitors can see numerous hi-end technologies that have been integrated into models like the BMW 4 Series Coupe and BMW5 Gran Turismo.

Suzuki, meanwhile, introduces its Swift, "star models" that it hopes will contribute to making it stand among the 10 passenger carmakers in the world.

Well-known auto accessory brands like Michelin and Robert Bosch are also participating in the show.

Michelin, 120-year French tyre manufacturer first time introduces their Primacy 3 ST product for both medium and big automobile at the show.

Organisers are expecting to attract 150,000 visitors this year, compared to 120,000 in 2012.

Chinese firms to display produce

Around 80 enterprises from China's Qinghai Province will come to Viet Nam to showcase their products at the National Convention Centre in Ha Noi.

The show will run between October 28-31 and feature farm produce, food production, textile, health, energy and electronic items.

The showcase aims to promote bilateral exchanges on culture, trade, investment and technology, between Qinghai Province and Viet Nam.

EU sends funding for local SMEs

A delegation from the European Union (EU) on Monday signed a deal to provide EUR4 million (US$5.5 million) for the Center for Small and Medium Enterprises European in Viet Nam.

According to the delegation's ambassador, Franz Jesse, economic growth and integration in East Asia was a major factor in the EU sponsoring the project.

The vice president of the European Commission, Antonio Tajani, will head the business delegation to HCM City, in collaboration with the Viet Nam Chamber of Commerce and Industry to promote co-operation between the EU and Viet Nam.

Lam Dong inks deal with KCCI

Central Highlands Lam Dong Province and the Korean Chamber of Commerce and Industry (KCCI) in Singapore on Tuesday signed a Memorandum of Understanding (MoU) to promote cooperation in agriculture, production and tourism.

According to Young Soo Jung, President of Commerce and the Korea Chamber of Commerce and Industry (KCCI) in Singapore, Lam Dong Province with its well known resort city of Da Lat were attractive locations for investment and would appeal to businesses in South Korea and Singapore.

Lam Dong Province will welcome delegates from the Korean Chamber of Commerce and Industry (KCCI) on November 15. A Korean business delegation will also visit the province in January next year.

Promoting Vietnamese trademarks

Policymakers and economists have advised Vietnamese businesses to have new strategic thinking about the building of trademarks in the context of international integration.

Nguyen Manh Hung, Vice President and Secretary General of the Vietnam Standards and Consumer Rights Protection Association, says the open-door economic policy provides many opportunities for foreign products to penetrate the domestic market. Success stories of FPT and Trung Nguyen (Highland) Coffee show that local businesses can do the same if they know how to upgrade their technological facilities, and improve the quality of products and services.

FPT Group Vice President Nguyen Huu Thai Hoa insists that businesses need to be self-reliant in their approach to markets in the world.

Vissan Company General Director Van Duc Muoi emphasises that Vietnam’s entry to the World Trade Organisation (WTO) makes it possible for businesses to gain a leg up on international competition.

Muoi proposes restructuring the agricultural sector to promote regional trademarks and lay a firm foundation for economic and business growth in the future.

Economist Bui Kien Thanh says Vietnam cannot build global trademarks if intellectual property rights continue to be violated and the financial system fails to meet business demand for capital.

The Government has established an export coordination centre to assist domestic businesses in their approach to international economic groups.

Thanh says Vietnam’s export turnover can surpass the 2012 level of US$118 billion if businesses regularly get updated on international market trends as well as specific economic and commercial regulations.

Thai Hoa notes that many big businesses remain optimistic about their capacity to weather the storm. Even when they are pushed to the brink of bankruptcy they will find new ways.

National Assembly Economic Committee Vice Chairman Nguyen Duc Kien says national economic growth must be closely associated with the development of businesses. The Government should find proper solutions to support them in playing the game, according to the rules of the market economy.

Firms fret over stricter receipt printing controls

Many local companies have expressed concern that the Ministry of Finance’s proposal for tightening the VAT receipt printing rule will throw them into a difficult position.

Tran Anh Huy, director of Anh Huy Company, an animal feed material producer in HCMC, complained that the proposal that the printing of VAT receipts should be allowed based on a firm’s chartered capital was strict. Chartered capital is not a factor that decides how many receipts local enterprises need, Huy said.

Many enterprises with small chartered capital have strong demand for VAT receipts due to their busy trading activities, Huy said. The proposed regulation that only companies with at least VND15 billion in chartered capital each could print receipts on their own could not help tackle fraud, he added.

Huy suggested that only new companies and those changing business addresses regularly should be certified by tax authorities before printing VAT receipts and purchasing such papers.

Regarding VAT receipt fraud, Huy said there should be a data center which can help detect fake receipt issuance.

Nguyen Thai Linh, general director of Lien Son Computer Paper Company as a veteran  VAT receipts issuer, said the number of enterprises selling their VAT receipts as reported by the ministry is small. “As far as I know, VAT receipt sellers often use others’ names to avoid being detected by authorities. A stricter rule applicable to all will affect the entire corporate sector,” he stressed.

The proposal was presented by Cao Anh Tuan, deputy director of the General Department of Taxation, at a press briefing of the finance ministry last week. Tuan said the Government had agreed to amend Decree 51 by letting companies with chartered capital of over VND15 billion each print their receipts.

The revision is expected to prevent enterprises from taking advantage of the prevailing law’s shortcomings to dodge tax payments.

Thai Binh calls for Indonesia’s investment

The Red River Delta province of Thai Binh has called on Indonesian businesses to invest in the locality, particularly in the support industry, rice processing, engine manufacture and tourism.

Chairman of the provincial People’s Committee Pham Van Sinh made the call during a working session on October 23 with Indonesian Ambassador to Vietnam Mayerfas who visited the province to study opportunities for cooperation.

Chairman Sinh gave the ambassador a brief introduction on the province’s situation as well as its achievements in economic development over the past time, especially its strength in industry and agriculture, specifically rice variety production.

The two sides agreed to set up twin relationship between Thai Binh and an Indonesian province to expand long-lasting cooperation.

The Indonesian Ambassador invited the provincial leaders and businesses to make a field trip to his country in the earliest time possible.

Hai Phong ranks third in FDI attraction

The northern port city of Hai Phong has lured approximately US$1.9 billion of direct foreign investment (FDI) so far this year, ranking third among provinces and cities in Vietnam.

The figure represents a 65.12 percent increase from the same period last year, said Vice Chairman of the municipal People’s Committee Dan Duc Hiep.

Notably, the LG Electronics Vietnam Ltd. Co., an affiliate of the Republic of Korea-based LG Group, has poured US$1.5 billion into the city’s Trang Due industrial park.

To achieve such outcome, Hai Phong has regularly streamlined its administrative procedures and well performed the “one-door” mechanism.

Meanwhile, the Hai Phong Economic Zone Authority has renovated investment promotion activities, organised meetings to call for investment both at home and abroad, and made good use of support from ministries and central agencies and Vietnam ’s representative agencies in other countries.

It has also bettered the quality of public administration services while caring for the need of businesses operating in industrial parks, thus advertising the province’s investment environment.

The authority is managing the Dinh Vu – Cat Hai Economic Zone and 19 industrial parks in Hai Phong.

Vietnamese economy ranked fifth in regional bloc

ASEAN Statistics (ASEAN Stats) ranks Vietnam seventh in terms of per capita GDP and third in terms of population density among the regional bloc’s ten member nations.

It identifies Vietnam as ASEAN’s fifth biggest economy on the basis of purchasing power and rapid and stable growth.

The country’s 7.3 percent annual average GDP growth rate between 2001–2010 was higher than that of Thailand, Singapore, Malaysia, and the Philippines.

Despite slight slides backwards in recent years, Vietnam’s growth rate is still considered stable and comparatively high.

Vietnam’s industrial ratio ranks third in the ASEAN bloc but its service ratio remains low. Economic restructuring is markedly sluggish.

ASEAN Stats warns the Vietnamese economy faces numerous difficulties but economic experts have more positive assessments.

The Asian Development Bank (ADB) forecasts despite a general diminishing of Asian economic growth, Vietnam’s growth will continue unchanged.

Strategy Consulting Group PwC predicts the Vietnamese economy will climb to 28th in the world by 2025. It places it among the 20 emerging economies enjoying the highest growth rates.

Additional 10 million EUR for innovation in Vietnam

An October 23–24 forum in Hanoi has heard the second phase of the Vietnam-Finland Innovation Parternship Programme (IPP) includes 10 million EUR in funding for the 2014–2018 period.

The forum, convened by the Finnish Embassy and the Ministry of Science and Technology, focused on the Vietnamese and Finnish Governments’ official development assistance (ODA) project designed to foster business innovation.

The IPP encourages technology upgrades, management improvements, developing new product ranges, and creative marketing. It supports small and medium-sized enterprises (SMEs) working in information technology, bio-technology, engineering, and green energy, prioritising projects contributing to poverty reduction.

Minister of Science and Technology Nguyen Quan said the two-day forum allows Vietnamese and Finnish policy makers, scientists, and businesses to consolidate links, deepen mutual understanding, and discover what each party can bring to Vietnam’s national renovation and economic restructuring.

He emphasised how heavily Vietnam’s future rests on its ability to innovate and integrate successfully the global market. Globalisation challenges domestic businesses to concentrate on creativity—mere competence will not be enough to penetrate overseas markets and dodge the middle-income trap.

Finnish Ambassador to Vietnam Kimmo Lahdevirta said similar IPPs are underway in South Africa, Tanzania, Mozambique, and other European countries. Its Vietnamese iteration seeks to boost bilateral cooperation with Finland and help the Southeast Asian country ascend the rungs of the knowledge-based global economy.

Vietnam attracts US$19.2 billion in FDI

Vietnam has attracted US$19.2 billion in direct foreign investment (FDI) since early this year, up 65.5% from a year earlier, according to the General Statistics Office (GSO).

Of the figure, about US$9.6 billion has been disbursed, representing a year-on-year increase of 6.4%.

Most FDI is focused on the manufacturing and processing sectors (nearly US$14.9 billion), and the electricity distribution and production industry.

As many as 1,050 new projects have been licensed with a total capitalization of US$13.1 billion, 79% higher than last year’s level, while the amount of additional investment was valued at US$6.1 billion.

The northern province of Thai Nguyen has taken the lead in FDI attraction (US$3389.1 million), followed by the southeastern province of Binh Thuan (US$2029.6 million), the central province of Binh Dinh (US$1009.5 million), HCM City (US$8,44.2 million), the northern province of Hai Duong (US$613.3 million), and the southern province of Binh Duong (US$521.1 million).

The Republic of Korea tops the list of Vietnam’s largest foreign investors, with its total investment worth US$3,586 million, followed by Singapore (US$2,721 million), China (US$2,245 million), Japan (US$1,152.3 million), and Russia (US$1,018 million).

JICA supports Quang Nam in developing trademarks

The central Quang Nam province’s People’s Committee has co-ordinated with the Japan International Cooperation Agency (JICA) to implement a project on building new products and trademarks and distributing farm and handicrafts products at roadside stations in the province.

The project was funded by JICA for three years (2013-2016) with a total capitalization of nearly JPY 20 million. Accordingly, the Project Management Board will conduct a feasibility survey into local craft villages and production establishments.

Japanese experts will share experiences in developing trademarks and consumer goods and taking full advantages of natural resources available to stimulate the domestic consumption power.

Haruko Hamada, head of the Product Development Research Institute in Japan said she was impressed by Vietnamese food during her stay in Vietnam. She believed that culinary tours will bring many foreign tourists to the country in the near future.

Japan is ready to support Vietnam in developing trademarks and distributing farm and handicrafts products as well as the Roadside Station of Thang Binh district into a successful model as in Japan.  

Vietnam-UK trade picks up

Bilateral trade turnover between Vietnam and the UK reached US$3.4 billion in the first eight months of the year, up 25% against the same period last year, according to the Vietnamese embassy’s trade office in the UK and Northern Ireland.

Of the total figure, Vietnam’s exports to the UK accounted for US$3.12 billion (up 28%).

Among its key items were audio and visual equipment, mobile phones, components of data processors, digital and automatic machines, coffee, footwear, interior wooden products and plastic bags.

This year’s total bilateral trade turnover between the two countries is estimated at some US$5.12 billion, up 17% from last year’s figure.

Vietnamese Embassy Trade Councilor Nguyen Thi Hong Thuy said that due to the negative impact of global economic downturn, two-way trade exchange continues to increase sharply with an average annual growth rate of over 30%.

She put the modest growth down to the weak competitiveness of Vietnamese goods compared to those coming from China, Thailand and India. Another reason is geographical distance and difference in business customs.

In addition, many Vietnamese are more focused on developing markets in the Asian region than on potential opportunities in the UK.

Vietnam is now placed 43rd in the UK list of 235 trade partners, with its bilateral trade exchange accounting for just 0.34% of the total trade turnover between the UK and other countries in the world.

Last year, Vietnam ranked 34th among 229 exporters of goods to the UK and 73th among 230 importers of goods from the third largest economy in Europe with bilateral trade turnover estimated at US$4.37 billion, up 35.5% against the previous year’s figure.

October CPI rises in two major cities

October consumer price indexes (CPI) in Hanoi and HCM City are both on the rise, according to the General Statistics Office (GSO).

Hanoi’s consumer price index (CPI) in October increased 0.57 percent against the previous month and 6.89 percent year-on-year.

According to the Municipal Statistics Office, the increase was attributed to price hikes in eight out of eleven baskets of commodities.

The highest price rise, 1.01 percent, was recorded in restaurant services.

The prices of housing, power, water and fuel rose by 0.7 percent due to the change in the price of clean water from October 1.

Meanwhile, the telecommunication and education sectors did not experience any price hike.

This month, transportation was the only sector to record price decreases, at 0.24 percent.

As a result, the city’s CPI in the first ten months of this year increased 6.25 percent over the same period last year.

The increase was recorded in 10 out of 11 groups of commodities, with the exception falling in the postal service-telecommunication group, which dropped by 0.18 percent.-

Meanwhile, Ho Chi Minh City’s consumer price index (CPI) in October increased by 0.17 percent against the previous month and 4.89 percent year on year.

According to the municipal Statistic Office, the increase was attributable to price hikes in seven out of eleven groups in the commodities basket.

The highest price rise, 0.41 percent, was recorded in food and restaurant services, pushed up by a 0.85 percent increase in the cost of meat and vegetables due to storms and flood.

However, the rice price has decreased by 0.19 percent, contributing to a total decrease of 3.64 percent from the beginning of this year due to impact of gloomy rice export markets.

The prices of transportation, telecommunication, culture-entertainment and other commodities and services also saw declines.

This month, the price of gold dropped by 1.83 percent over last month and 20.24 percent against December last year while the USD price fell by 0.1 percent against the previous month but up 1.33 percent year-on-year.

Promoting Vietnamese trademarks

Policymakers and economists have advised Vietnamese businesses to have new strategic thinking about the building of trademarks in the context of international integration.

Nguyen Manh Hung, Vice President and Secretary General of the Vietnam Standards and Consumer Rights Protection Association, says the open-door economic policy provides many opportunities for foreign products to penetrate the domestic market. Success stories of FPT and Trung Nguyen (Highland) Coffee show that local businesses can do the same if they know how to upgrade their technological facilities, and improve the quality of products and services.

FPT Group Vice President Nguyen Huu Thai Hoa insists that businesses need to be self-reliant in their approach to markets in the world.

Vissan Company General Director Van Duc Muoi emphasises that Vietnam’s entry to the World Trade Organisation (WTO) makes it possible for businesses to gain a leg up on international competition.

Muoi proposes restructuring the agricultural sector to promote regional trademarks and lay a firm foundation for economic and business growth in the future.

Economist Bui Kien Thanh says Vietnam cannot build global trademarks if intellectual property rights continue to be violated and the financial system fails to meet business demand for capital.

The Government has established an export coordination centre to assist domestic businesses in their approach to international economic groups.

Thanh says Vietnam’s export turnover can surpass the 2012 level of US$118 billion if businesses regularly get updated on international market trends as well as specific economic and commercial regulations.

Thai Hoa notes that many big businesses remain optimistic about their capacity to weather the storm. Even when they are pushed to the brink of bankruptcy they will find new ways.

National Assembly Economic Committee Vice Chairman Nguyen Duc Kien says national economic growth must be closely associated with the development of businesses. The Government should find proper solutions to support them in playing the game, according to the rules of the market economy.

Exports to hit 131 billion USD in 2013

Vietnam is striving to fetch 131 billion USD from exports in 2013, an increase of 14 percent against last year and 4 percent higher than the target set by the National Assembly.

Deputy Minister of Industry and Trade Tran Tuan Anh told representatives of business associations and exporters in the southern region recently that exports remained a silver lining in the country’s economic panorama as its turnover amounted to 96.27 billion USD in the first nine months of this year, up 15.5 percent year-on-year, despite narrowed markets, falling prices and production difficulties.

The industrial and processed products made up 70 percent of the country’s total exports as they earned 67.44 billion USD, a 26.8 percent rise over the same period last year.

Mobile phones remained the top foreign currency earner, bringing home 15.5 billion USD, a year-on-year growth of 19.9 percent. It was followed by garment, with 13.1 billion; footwear, 6 billion; and wood and wooden products 3.87 billion.

According to the Vietnam Leather and Footwear Association (Lefaso), the target of an export turnover of 9.5-10 billion USD this year is within its reach.

Nguyen Van Tuan, Deputy General Secretary of the Vietnam Textile and Apparel Association (Vitas) forecast an 18.5 billion USD export revenue for the industry in 2013 as orders are large.

However, the export of agro-seafood products faced a lot of difficulties due to the global economic downturn. In the nine-month period, the country’s coffee exports reached only 1 million tonnes, down 23.4 percent year-on-year.

Rice, a key export of Vietnam , also saw decreases of 14.7 percent in volume and 17.2 percent in value, said Truong Thanh Phong, President of the Vietnam Food Association (VFA), adding that the sector has lowered its yearly export target from 7.5 million tonnes to 7 million tonnes.

According to the Ministry of Industry and Trade (MoIT), although the world economy has shown signs of recovery, declining demand and increasing protectionism have caused difficulties for Vietnamese exporters in expanding their markets and seeking partners.

Therefore, the MoIT and the Ministry of Planning and Investment have submitted to the Government the scenario for next year’s exports with a turnover of 144 billion USD, an increase of 10 percent.

This is a big challenge that requires concerted efforts by all ministries, agencies, associations and businesses, said Anh.

He suggested ministries and agencies focus on solving capital and interest rate issues for producers and exporters while building mechanisms and policies to support agro-seafood consumption.

It is necessary to enhance the control of the quality of exports in order to improve the prestige of Vietnamese products in the world market, he added.

Hanoi works to develop breeding sector

Hanoi has focused on developing large-scale breeding cooperatives in a bid to ensure food quality and hygiene and assist farmers in production and consumption.

In addition to providing knowledge and information on breeding for farmers, the municipal Department of Agriculture and Rural Development has worked to foster linkage between them and local enterprisess, developing material areas and increasing distribution and consumption channels for the products.

As many as 78 distribution points have been set up and operated effectively in the city.

Hanoi now has a total of nine breeding cooperatives located mainly in suburban districts.

Greening industrial production in Vietnam

Along with many action programmes such as the National Target Programme on Energy Saving and Efficiency, Environmental Industry Development Project until 2015 with a Vision Towards 2020, the Cleaner Production (CL) Strategy until 2020 was also promoted in industries, with a view to green and sustainable industrial development. Report by the Vietnam Economic News.

According to Deputy Minister of Industry and Trade Le Duong Quang, the ministry, as a state agency in charge of industrial and commercial management, in recent years has developed and implemented numerous programmes and projects to promote industrial production and trade to develop sustainability, such as the Environmental Industry Development Project until 2015 with a Vision Towards 2020 and Bio-fuel Development Project until 2015 with a Vision Towards 2020. The programmes and project have contributed significantly to the transformation of the production and changing consumption habits of industrialised products, reduction of waste into the environment while making the most use of natural resources, creating better working conditions for the workers while increasing productivity, improving the competitiveness of industrial products, and promoting green and sustainable industrial development.

It is estimated that there have been more than 1,200 businesses across the country applying cleaner production solutions. The ministry has organised nearly 200 CP training sessions and workshops attracting more than 11,000 participants, contributing to raising CP awareness for domestic businesses and related organisations. In particular, more than 20 provinces and cities nationwide have prepared CP action plans for implementing the CP strategy in industry and all departments of industry and trade are capable of guiding and counseling on the application of cleaner production in industry.

Many businesses have taken initiatives to apply CP solutions through pollution control at the source and take advantage of other business waste as raw materials. For example, to become an eco-industrial park or environmentally friendly industrial park, Bien Hoa 1 Industrial Park has focused on waste reduction at source, and reusing and recycling waste; waste exchange inside and outside the industrial park and end of pipe treatment of waste. Through a survey in 53 manufacturing companies in Bien Hoa 1 Industrial Park, 14 companies have applied processes to reuse waste products and waste materials from their production lines; five companies often exchanges waste with waste collectors outside the park; and one company has applied CP solutions.

According to Quang Nam province’s Department of Industry and Trade, some 90 percent of industrial production units and 95 percent of management units in the province have learnt about CP solutions. The province has incorporated a CP promotion program into the strategy of environmental protection and pollution control. CP activities have always been maintained after the CP in industry component ended in 2011. Through CP solutions, industrial enterprises in the province have reduced five percent on raw materials and 30 percent of emissions.

As Vietnam is gradually developing renewable energy projects, with limited use of new energy sources and applying solutions to energy efficiency and savings in the sectors of commerce, industry and services, the initial CP results have contributed significantly to its roadmap to the green and sustainable industrial development.

Data reported at a workshop held in Hanoi on September 18 by the Vietnam Environment Administration showed that the content of particulates around most industrial zones (IZs) exceeded the allowed limit (in some places it was found to be three or four times higher than the allowed limit). Pollution is caused mostly by dust, carbon dioxide (CO2), sulfur dioxide (SO2) and noise, leading to serious degradation of the environment and directly affecting socioeconomic development results as well as human health.

Solid waste is also a matter of concern. Statistics show that IZs in Vietnam discard an average of several ten thousand tonnes of solid waste each day or over three million tonnes each year. The index is growing along with increases in the fill-up ratio of IZs. It is forecasted that the total amount of solid waste from IZs would reach 6-7.5 million tonnes by 2015 and 9-13.5 million tonnes by 2020.

Environmental pollution caused by wastewater is even more serious. Currently, most IZs lack central wastewater treatment stations. The amount of wastewater from IZs in the Southeastern region accounts for 49 percent of the total amount of wastewater from all IZs nationwide, while only 66 percent of the IZs have central wastewater treatment stations. Many IZs have come into operation but still lack wastewater treatment systems. Some IZs already have wastewater treatment systems but have yet to put them into operation. In some IZs, the wastewater treatment system has been ineffectively operated or has degraded. It is estimated that about 70 percent of wastewater from IZs runs directly into the environment without any treatment.

Experts attributed this situation mostly to the limited public awareness about environmental protection and protecting the environment of IZs in particular. In their opinion, the community is yet to appreciate the important role of the environment as well as the sustainable relationship between production activities and the lives of workers in IZs as well as between the IZs and surrounding areas. Many IZs attract investment and build infrastructure without following the design of investment projects. They ignore building central wastewater treatment systems and their investment in water drainage facilities is inadequate.

Notably, the regulations on environmental protection in IZs are still lacking. There are no specific regulations regarding environmental pollution control in IZs. The regulation on environmental assessment of projects based in IZs has been slowly revised and lacks strict sanctions. Legal documents which are applied to monitor the treatment of wastewater in IZs remain unclear. Most environmental incidents happened due to the lack of seriousness by businesses in implementing environmental protection commitments. Many businesses have eluded environmental inspectors. The economic recession in recent years has been an obstacle to efforts by firms to invest in environmental protection. Environmental inspection activities have yet to meet practical demand.

The National Assembly Standing Committee held a meeting on September 19, 2013 to collect opinions on draft amendments to the Environmental Protection Law. The National Assembly’s Ethnic Council Chairman Ksor Phuoc said that to improve the situation, the state must apply a mechanism that encourages all people to take part in environmental protection activities. In his opinion, it is necessary to bring into play the role of the people, government officials at different levels and sociopolitical organizations in supervising the implementation of environmental protection policies and regulations in localities.-

Vietnamese, Algerian businesses seek to boost partnership

As many as 100 businesses operating in various fields participated in a Vietnam-Algeria business forum in Algiers on October 20.

At the event, Deputy Minister of Industry and Trade Tran Tuan Anh introduced Vietnam’s investment policies and outlined the country’s strengths and potential in producing, processing and exporting agricultural and aquacultural products.

He said businesses from both countries can exploit the opportunities on offer by boosting their trade partnership for mutual benefit.

Updating participants on the major features of investment and the market situation in Algeria, Ferroukhi Lyes, Director General of the Algeria National Investment Development Agency, stated that Vietnam can be a development role model to Algeria.

He said the Algerian Government is laying a firm foundation to build sustainable industry, striving to get rid of its oil-based economy and rethinking its export policies to expand into new and promising markets.

During their stay, Deputy Minister Anh and his delegation held working sessions with the Algerian Ministries of Foreign Affairs, Industry and Investment Promotion and Commerce.-

Environment industry development discussed

The Ministry of Industry and Trade (MoIT) organised a conference on the development of Vietnam’s environment industry on October 18 in Hanoi, attracting the participation of experts, scientists and representatives from many enterprises.

Addressing the event, Deputy Minister Le Duong Quang underscored the important role the environment sector plays in the development of the country’s industry in the current period.

He said the conference is a good chance for all parties to foster their connectivity with a common target of protecting the environment and boosting the country’s economy.

According to the Research Institute for Industrial Strategies and Policies under the MoIT, Vietnam now has 238 industrial parks with 105 out of the 152 factories installing their waste water treatment systems.

Six out of 63 provinces and cities nationwide have their own waste water treatment plants, while 12 out of the 20 water processing projects have become operational with a total capacity of treating 415,000 cubic metres per day, the institute said.

Currently, 16 plants nationwide can process 3,000-4,000 tonnes of waste water every day, meeting about 15 percent of the total need.

The institute also proposed a number of measures to develop the environment industry, including the boosting of the service sector, associating treatment and recycling, developing equipment to serve the waste treatment sector, and improving the efficiency of the recycling work.

Participants also gave their opinions to the legal mechanisms to develop the environment industry.-

Vietnam striving to develop modern retail industry

Vietnam’ retail sector, with a breath of fresh air from foreign retail distributors, has initially proved its change to better.

The total retail sales of goods and services in 2011 reached over 2 trillion VND (90 billion USD), a year-on-year increase of 24.2 percent despite the economic difficult condition.

At present, there are 650 supermarkets in 59 of the 63 provinces and cities across the country and 117 shopping centres in 32 provinces and cities. The number of newly established supermarkets and shopping centres after five years of joining the World Trade Organisations (WTO) from 2007 has increased by an average of 20 percent and 72 percent compared to the 2002-2006 period, respectively.

In addition, thousands of speciality shops and convenience stores have joined the chain nationwide.

The country’s retail industry has improved its position in the national economy with a contribution of over 14 percent of GDP and employment. Of this, the retail sector has contributed over 80 percent with many big names leading the national retailers such as Intimex, Saigon Coop.Mart, Fivi Mart and many other foreign retailers such as Big C and Lotte.

Although Vietnamese retail sales have seen rapid growth, the path to Vietnam’s retail industry is still long ahead and the sector has not yet entered a fierce period.

The Association of Vietnam Retailers currently focuses on building a modern and effective retail industry to contribute to the country’s economy as well as consumer benefit.

Infrastructure boost brings HCM City real estate sheen

Infrastructure works that are under construction and will help ease congestion to the eastern part of Ho Chi Minh City are expected to abet property development there, according to market observers.

Infrastructure is always a key factor in real-estate development, and several projects in the eastern districts of 2, 9 and Thu Duc are on the verge of completion.

Sai Gon Bridge 2, for instance, is due to open to traffic in early November, significantly contributing to easing congestion and shortening the travel time from the eastern part to the city centre.

Connecting District 2 with Binh Thanh and built next to the existing Sai Gon Bridge , it was completed on September 12 after a year and a half of construction.

The six-lane, 1.5 trillion VND (65,000 USD) bridge is 987.3 metres long and 23.5 metres wide.

Besides, the expansion of the Hanoi Highway from the new bridge to the Dong Nai Bridge in Bien Hoa and the ongoing construction of the city's first metro route have also helped create a buzz around property projects in Districts 2, 9 and Thu Duc, especially along this route.

They include Thao Dien Pearl, Tropic Garden, the Vista, the Estella, Imperia An Phu, and Cantavil Premier.

A four-lane steel fly-over recently built at the Thu Duc crossroad has helped ease traffic from HCM City to Bien Hoa and Dong Nai, benefiting real-estate projects far away from the city centre, especially low-cost ones.

The developers of many property projects in District 9 are busily preparing to attract customers, with many roads in this area being upgraded and expanded.

Many other land projects in Bien Hoa and Long Thanh are waiting for the Long Thanh-Dau Giay Highway to be finished in late 2014.

Cheap housing fair draws thousands

The second trade show of cheap social housing in Hanoi took place from October 18 to 20, attracting thousands of potential home buyers.

Deputy Minister of Construction Nguyen Tran Nam said the event made the real estate market more transparent by connecting sellers with buyers.

The property sector plays a very important role in the market-oriented economy, he explained, so the current frozen market hugely affects the country's economic growth and many other industries.

The organising board received sales registration for more than 2,000 social and 1,500 commercial housing projects from property developers, as well as more than 2,000 registrations from potential home buyers.

Housing products to be introduced at the show cost from 9 million VND (around 428 USD) to 12 million VND (570 USD) per square metre.

The show was jointly organised by the Ministry of Construction and real estate agencies.

Gentraco - a leading rice exporter of Vietnam

Gentraco Corporation, based in the Mekong Delta city of Can Tho, has retained its position as one of the top five rice exporters of Vietnam for the last decade.

In the first nine months of 2013, Gentraco exported 300,000 tonnes of rice (60 percent of which was of high quality) to Asia, Africa, America, Europe and Oceania, 133,000 tonnes more than last year.

The firm expects to fulfil its target of 400,000 tonnes by the end of this year and nearly 3.7 trillion VND (174.8 million USD) in revenue, 749 billion VND (35.7 million USD) higher than its takings in 2012.

Gentraco’s high-quality rice products like Co Trang, Miss Can Tho, Ngoc Dong and Ngoc Do are sold in 80 supermarkets in Vietnam and a number of chains in EU countries, the US and Australia. Sales average 750 tonnes per year.

For this, the exporter has invested in advanced production lines and warehouse facilities, as well as zoned 7,000 hectares in districts of Can Tho, Soc Trang and Kien Giang provinces for the cultivation of recognised varieties. It has also given financial support to farmers and bought paddy rice at reasonable prices.

Employee wellbeing is also in the company’s attention, with an average per capita monthly salary of 7.3 million VND (347.6 USD) together with other allowances.

In 2012, Gentraco was named as one of the exemplary businesses in the Mekong Delta by the Vietnam Chamber of Commerce and Industry and a prestigious exporting enterprise by the Ministry of Industry and Trade.

1,120 MW of electricity put into use in nine months

The Electricity of Vietnam (EVN) has put into operation five out of six turbines of the Ban Chat hydropower, Nghi Son 1, Quang Ninh 2 and Hai Phong 2 thermoelectric plants with a total capacity of 1,120 MW.

Progress has been ensured in many other important power projects, including Lai Chau, Trung Son, Huoi Quang, Song Bung 4 and Song Bung 2 hydropower, Ninh Thuan nuclear power, Mong Duong 1, Duyen Hai 1 & 2 and O Mon 1 & 2 thermoelectric plants.

In addition, EVN has put into use 28 220-500kV and 85 110kV power lines with a total length of 1,463 km. The group has urgently completed investment procedures and capital arrangements to start the construction of the Son La-Lai Chau 500kV transmission line at the end of this year.

With its high determination, EVN has completed the Song May-Tan Dinh and Phy My-Song May 500 kV transmission lines, ensuring power supplies in the southern region as of 2014.

According to EVN, in the first nine months of this year, the group and its affiliates signed credit contracts worth over 45.8 trillion VND (2.18 billion USD), including 888 million USD from foreign official development assistance (ODA) and foreign loans. Those of more than 26 trillion VND (1.24 billion USD) were also inked in the third quarter of 2013.

EVN also said that it will fulfil its plan of putting into operation six turbines with a combined capacity of 1,420 MW by the end of this month, and strives to have the first 600 MW turbine of the Vinh Tan 2 thermoelectric plant linked to the national grid in late December.

The group will make every effort to speed up construction of the Pleiku-My Phuoc-Cau Bong 500 kV line while coordinating with the Ministry of Industry and Trade to accelerate the approval of a project to provide electricity for Ly Son Island in the central province of Quang Ngai .

For power source projects, in 2013, EVN strives to complete the Vinh Tan-Song May 500 kV line and Vinh Tan 500 kV transformer station of the Vinh Tan 2 thermoelectric plant, and the Son Ha-Doc Soi 220 kV line of the Dak Drinh hydropower plant.

It will ensure the progress of power grid projects so that they can begin operating early next year, together with the Mong Duong and Duyen Hai Electricity Centres, and the Ha Tinh Formosa Thermoelectricity Plant.

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