Investment deal agreed for petrochemical complex

The JGCS Consortium and Vietnam's Construction Corporation No1 have signed an agreement to build civil works at the Nghi Son Refinery and Petrochemical Project in central Thanh Hoa province.

The US$91-million sub-contract is for the construction of the project's civil works, zone-1 and zone-2.

Speaking at the signing ceremony in Hanoi on February 22, Deputy Prime Minister Hoang Trung Hai required the project's main contractor, JGCS, and domestic sub-contractors, including Construction Corporation No1, to closely coordinate with the project's investor, consultant and supervisor to assure the project progresses on schedule and at a high quality, while maintaining a safe environment for workers and environmental protection standards.

The success of the project will help continuously build ties between domestic and foreign contractors in future projects, Hai added.

He also highly praised the JGCS's preparation for the project's construction and congratulated Construction Corporation No1 as the Vietnamese firm that can prove its competence and experience to be selected as a sub-contractor of the project.

The project is the largest-ever in Southeast Asia and also the largest FDI project in Vietnam – with capital topping US$9 billion.

It is a joint venture between PetroVietnam, with a 25.1% stake, Kuwait Petroleum International with 35.1%, Japan's Idemitsu Kosan with 35.1% and Mitsui Chemicals with a 4.7% investment.

Once commissioned in 2017 as scheduled, the project is expected to refine 200,000 barrels of crude oil per day, which is the equivalent of 10 million tonnes of oil per year. It is estimated it will create thousands of jobs during the construction period and more than 1,000 jobs when operational.

This will be the second oil complex in Vietnam, alongside the Dung Quat oil refinery plant.

The JGCS Consortium includes Japan’s JGC Corp, Chiyoda Corp, France’s Technology Technip and GS Engineering & Construction of the Republic of Korea.

Finance ministry moves to unpick business barriers

The Ministry of Finance held a meeting in Hanoi on February 24 with the US-ASEAN Business Council to discuss and unpick barriers for the council’s member businesses operating in Vietnam.

According to the council, Vietnam’s business climate has vastly improved. However, enterprises still face difficulties regarding policies and taxation.

Participants at the meeting proposed detailed suggestions to create an investment environment in accordance with international practices.

Minister of Finance Dinh Tien Dung recognised the active contributions of foreign direct investment projects in Vietnam’s development.

He said in 2014 and the following years, Vietnam will move to improve the effectiveness of foreign direct investment.

To this end, the country will focus on quality and added value, as well as those that are environmentally friendly and adopting advanced technologies.

Dung said his ministry is committed to stepping up the perfection of its management mechanisms to facilitate overseas businesses in Vietnam.

Russian investor eyes US$1 bln coal-use petrol plant

Russia’s Rosnhepchegat and domestic firm Viet Nga Investment and Technology JSC have proposed constructing a US$1 billion petrol plant sourced through coal in Quang Ninh province.

On-site low quality coal will be used to feed the plant to be built in Cam Pha district which is rich in coal reserves.

The plant will use globally advanced, environmentally friendly technology. It is expected to generate 10,000 jobs for local people and those from neighbouring areas.

During a recent working session with provincial leaders, Rosnhepchegat chairman Milogolov Valeri Pavlovich expressed his company’s desires to invest in the project and sought Quang Ninh’s support for it.

Nguyen Van Thanh, Vice Chairman of the provincial People’s Committee, assured his guest the province will create the best possible condition for the investor to carry out the project in the second quarter this year.

CPI surges slightly on low purchasing power

The General Statistics Office of Vietnam (GSO) reports the consumer price index (CPI) for February rose 0.55% over the previous month and 4.65% over a year ago – a 10-year record low.

Ten out of 11 groups of products and services experienced CPI growth, ranging from 0.05 to 1.15%. The highest growth rate was in food and catering and the lowest was in pharmacy and healthcare. Housing and construction material prices decreased 0.64%.

Normally the traditional Lunar New Year (Tet) festival falls in February when consumer demands for goods and services often rise suddenly, fuelling CPI. On the contrary, February 2014’s CPI did not follow the trend.

Head of the GSO’s Price Statistics Department Nguyen Duc Thang explains thanks to favourable weather conditions this year farm produce supply exceeded demand, and as a result food and foodstuff prices increased slightly during the Tet holiday.

In addition, when the economy has yet to recover completely, consumers have still tightened their belt, focusing on daily necessities. Market prices went up several days before Tet and quickly returned to normal.

Despite a stable supply, food prices inched up slightly against the previous month owing to a high demand for delicious rice and sticky rice.

An increasing demand for travel during the Tet holiday caused prices of restaurants, catering services and public transport to rise significantly.

Domestic gold prices edged up 1.87% against the previous month to reach VND35.3 million/tael. The foreign currency exchange rate remained stable at VND21,120/USD.

Thang predicts that essential commodities will go up slightly in March and the CPI is likely to surge around 0.55-0.6%.

Cambodia, Vietnam propose economic connectivity plan

Vietnam and Cambodia will work together to formulate a joint programme “Connecting the two economies.”

The agreement was reached at the fifth session of the Vietnamese Ministry of Planning and Investment (MPI) and the Cambodian Ministry of Planning (MoP) in Phnom Penh on February 24 co-chaired MPI Minister Bui Quang Vinh and MoP Minister Chay Than.

The joint programme will span a number of key areas, including transport, telecommunications, finance, banking, agriculture, and tourism connecting border provinces of both sides.

Vinh and Than said in 2014 the two ministries will continue conducting regular visit exchanges to share experience and increase cooperation, especially in training.

The two ministries convened the meeting during Vietnam’s MPI delegation visit to Cambodia from February 23-26.

MoP Minister Than presented the Cambodian Prime Minister’s Order to 26 officials and former experts of the Vietnamese MPI.

Minister Vinh paid a courtesy visit to Prime Minister Hun Sen.

HCM City banks cut deposit rates after New Year

Many banks in HCM City have cut deposit interest rates since the Lunar New Year.

Sacombank reduced them by 0.3-0.5% for short-term deposits on February 12, with the rate for one-month deposits falling to 6% and 6.6% year for less than VND50 million (US$ 2,370) and over VND50 million.

On February 20 the bank cut the rates by another 0.1% to 6.5% annually for the latter.

On the same day ACB slashed rates by 0.3% for short-term deposits to 6.5% for one- and two month deposits and to 6.6% for three months.

Several other banks followed suit. Nam A Bank trimmed six month deposit rates from 8.6% to 8%, and for 12 months, from 9% to 8.7%.

A Sacombank official said with the State Bank of Vietnam’s message about a possible reduction of 1-2% in lending rates, banks have to cut deposit rates.

They had hiked lending rates due to high demand for credit before the Lunar New Year.

According to the central bank’s HCM City branch, as of the end of January lending by banks in the city had amounted to VND949 trillion (US$ 44.5 billion), down 0.41% from the end of December.

Exclusive S Korea complex planned

The central province of Quang Nam plans to build a Korean-style industrial and urban complex in Chu Lai Industrial Park for South Korean investors only, according to baodautu.vn.

The establishment of a Korean-style industrial and urban complex focusing on industrial manufacturing and processing projects, support industries, and infrastructure and tourism projects from the RoK would help the park fulfill its development target and fit in with the global investment trend, chairman of the Quang Nam provincial People's Committee Le Phuoc Thanh said in his letter to Deputy PM Nguyen Xuan Phuc.

In 2012, the committee first drew up plans for the complex with RoK developer C&N Vina. They intended to develop a 1,600-ha project comprising 700ha for Tam Anh industrial zone, 350ha for a township and 550ha for tourism services.

In April 2013, the developer obtained an investment certificate to develop the 200-ha Tam Anh industrial zone, which is worth US$25 million, within the complex. To date, 10 foreign investors have agreed to set up small-scale projects in Tam Anh Industrial Zone, said Thanh.

The complex, according to Thanh, would help the province improve its investment climate in the fields of industrial manufacturing and processing, especially for South Korean companies.

According to the Management Board of Chu Lai Open Economic Zone, nine projects were certified in 2013, with total registered capital of $239 million, including one FDI project.

To date, the Chu Lai Open Economic Zone has hosted 92 investment projects, with total registered capital of $1.7 billion, of which 64 projects have been put into operation.

VN exporters urged to tap Hong Kong market

Vietnamese businesses need to boost exports to Hong Kong to not only exploit that market but also neighbouring ones, a seminar heard in HCM City last Thursday.

"Hong Kong – An International Hub for Legal and Arbitration Services" seminar was held to provide information about Hong Kong to Vietnamese firms, enabling them to strengthen trade and investment ties with the market.

Hong Kong, which has a population of around seven million and a very high per capita income, primarily imports food and foodstuff due to its shortage of cultivable land. This offers the Vietnamese agricultural sector opportunities to sell to this lucrative market, according to participants.

The territory is emerging as a promising market for Vietnamese seafood products, the Viet Nam Association of Seafood Exporters and Producers said, adding that exports to Hong Kong grew rapidly last year.

It is also an important market for Vietnamese rice, especially fragrant rice.

According to the General Department of Viet Nam Customs, trade between Viet Nam and Hong Kong has risen strongly in recent years, with Vietnamese exports reaching US$4.1 billion last year.

Key exports included seafood, rice, wood and wood products, textile and garment, footwear, computers, and electronic products and equipment.

Hong Kong is also considered a trade and investment gateway to mainland China and other countries, and Vietnamese businesses should use the opportunity to enter other markets through the territory, delegates said.

Hong Kong Secretary for Justice Rimsky Yuen was among those attending the seminar organised by the Viet Nam Chamber of Commerce and Industry, the Hong Kong Department of Justice, the Hong Kong Trade Development Council, and the Hong Kong Economic and Trade Office in Singapore, reported the Thoi bao Kinh te Viet Nam (Vietnam Economic Times).

CBAs promote industrial relations

The application of sectoral collective bargaining agreements (CBAs) has raised awareness of both employers and employees of developing win-win industrial relations.

The function was organised by the Ministry of Labour, Invalids and Social Affairs (MOLISA) at a workshop in Ho Chi Minh City on February 24.

The textile and apparel industry was the first to sign CBAs at a sectoral level in 2010. To date, more than 100 businesses with over 136,000 labourers have inked the agreements.

Under the documents, a number of terms benefiting employees have been realised, for example those related to salary, food expenses and allowance, reports read.

Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Trade Union, said since CBAs were applied, there have not been any serious labour disputes that led to strikes in this sector.

Following the southern province of Binh Duong, the first to pilot CBAs in the textile and garment industry in September 2011, the agreements are expected to be signed by the textile and apparel trade unions in Hanoi and HCM City, together with construction and rubber sectors.

Deputy Head of the MOLISA’s Department of Labour and Wage Le Xuan Thanh said CBAs are important to build harmonious and stable industrial relations. They will better ensure employees’ rights, improve the sense of responsibility of all sides to observe laws, and reduce labour disputes and strikes.

Transport sector focuses on BOT, BT, PPP investment

The transport sector has mobilised resources to invest in Build-Operate-Transfer (BOT), Build-Transfer (BT) and Public Private Partnership (PPP) projects in various fields.

According to Le Anh Tuan, Head of the TPP Department under the Ministry of Transport (MOT), the ministry has so far managed 56 projects of these kinds with a total investment of VND165 trillion (nearly US$7.82 billion).

Of those, 14 have been put into use, 34 others are underway and the remaining will be soon implemented, he said.

PPP invested highway projects such as Dau Giay-Phan Thiet, Ninh Binh-Thanh Hoa-Bai Vot (Ha Tinh province) and Trung Luong-My Thuan highways are facing difficulties in mobilising funds due to high costs and the need for government contributions.

Meanwhile, the air, rail and river transport sectors have yet to mobilise capital for infrastructure construction and have payback policies and methods.

To solve these problems, Tuan said the MOT has focused on promoting key BOT projects on national highways 1 and 14 by accelerating the completion of procedures related to investment licence and signing of project and credit contracts.

The PPP projects will be divided into phases with the first one prioritised while BT infrastructure projects will be refunded by using land or operating other projects in combination with the local economic development, he noted.

The ministry has directed its agencies to further promote investment and provide adequate and prompt information on BOT, BT and PPP projects. The State will continue collecting road fees or selling this right to get money to refund loans.

Vietnam, Italy fashion industries pledge to work together

Vietnamese Ambassador to Italy Nguyen Hoang Long has said he hopes the European country will aid Vietnam by training its workforce in the fashion industry in order to improve the quality of its textile and garment exports.

He voiced his expectation at a working session between Vietnamese fashion designers and Stepano Dominella, President of Italian fashion house Gattinoni, in Rome on February 24.

The diplomat cited the fact that Vietnam is a major textile and apparel exporting country, yet the creativity in its products is still low.

Therefore, to enhance exchanges of information and experience, the Vietnamese Embassy and domestic designers have organised fashion shows in some Italian cities and meetings between the two countries’ designers.

Dominella said although Italy is renowned for its fashion industry, its young designers are willing to learn fromVietnam’s experience, particularly in making handicrafts, adding that much potential remains for both countries to collaborate in this sphere.

He expressed his hope that the Italian industry and Gattinoni in particular will gain a foothold in new markets in Asia, including Vietnam, and in return Vietnamese fashion will win Italian consumers’ interest.

He also affirmed Gattinoni’s support for young Vietnamese designers.

At the session, both sides agreed to work with the Association of Textile, Garments and Fashion of Rome to hold a Vietnamese fashion show in the Italian capital in September and another for Roman fashion in Vietnam in December.-

Companies outline IPO plans for Q1

Companies plan to launch a number of initial public offerings (IPOs) at the end of February and in March, and trillions of dong will likely be needed to absorb them.

These companies are primarily from the construction and transportation sectors, such as the Ha Noi Construction Corporation (Hancorp), the Civil Engineering Construction Corporation No 1 (Cienco 1), the Transport Engineering Design Inc (Tedi), and the Viet Nam Water and Environment Investment Corporation (Viwaseen).

The Thang Long Construction Corporation and Song Da – Hoang Long Company are also planning to launch IPOs.

Most of these companies will offer shares at VND10,000 (US$0.47) each, while Hancorp with charter capital of VND1.9 trillion ($90.4 million) and Viwaseen with charter capital of VND800 billion ($38 million) will each offer shares at the price of VND10,200.

As an IPO pioneer this year, Viglacera Corporation, which had charter capital of more than VND3 trillion ($142.8 million), raised more than VND200 billion ($9.5 million) from its IPO on Thursday. The IPO attracted more than 600 organisations and individual investors.

A volume of 19.47 million shares were sold at VND10, 301 per share, constituting 25.3 per cent of Viglacera's offered share volume. Notably, foreign investors bought 52 per cent of the volume of shares sold.

The Bach Dang Construction Corporation held its IPO on Friday, which attracted 192 individual investors who bought more than 890,000 shares. The company offered more than 7 million shares at a price of VND10, 200 each.

The Government Decree 108, which took effect from mid-November last year, stipulated that within one year from the IPOs, the companies must be listed on exchanges.

As a result, the equity supply was forecast to increase this year, especially taking into consideration that the government will provide a boost to the privatisation of state-owned enterprises in the 2014-15 period.

Work to begin on highway upgrade

The project to upgrade 45km of the National Road 1A from Ha Noi to Bac Giang Province will start in the first quarter of this year with an investment of VND4.5 trillion (US$213.35 million), according to the Transport Ministry.

The road, which will be constructed under the BOT (build-operate-transfer) model, is expected to be complete in 2016, the ministry said.

The expressway will be 45.8km and have a speed limit of 100km per hour, starts at the crossroad of National Road 31 in Bac Giang Province and ends at the Phu Dong old toll station in Ha Noi.

Under the project, the part from the intersection of National Road 31 to Nhu Nguyet Bridge passing Cau Bridge that connects Bac Ninh and Bac Giang provinces, will be expanded into six lanes with a width of 33m. The rest will keep the original width of 34m.

It will take some 19 years and eight months for the project to recover its investment capital, according to the Ministry of Transport.

The project will help reduce traffic accidents and congestion, contributing to the socio-economic development of Ha Noi as well as Bac Ninh and Bac Giang provinces.

National Highway (Ha Noi – Bac Giang) was put into operation in 2001. The road, which had seriously deteriorated, was often heavily congested.

Prime Minister Nguyen Tan Dung has given the official nod to a project to build a bridge in the northern province of Phu Tho under the Build-Transfer investment form.

The Dong Quang bridge, which is 746 metres long and 10 metres wide, will link the provincial road in Minh Quang Commune in Ha Noi's Ba Vi District with the provincial road in Dong Luan Commune in Phu Tho's Thanh Thuy District.

The project is expected to help boost the link between Ha Noi and Phu Tho as well as other provinces in the north, contributing to socio-economic development in the region in general and Phu Tho Province in particular.

The PM asked Phu Tho Province to use the provincial budget to refund the project's investor.

The bridge is slated for completion in May 2015.

Lure of gold still strong in Viet Nam

Among regional markets, Viet Nam posted a strong growth rate in gold investments, according to the World Gold Council's latest report in February.

The report of 2013's Q4 took consumers' reaction to lower prices, particularly in the second quarter, which stimulated opportunistic buying, as a reason for the growth.

The report also said that domestic premiums in Viet Nam remained stubbornly high at around US$200 per ounce (higher than the world price), but investors nevertheless continued to prefer the inflation-hedging and wealth preservation properties of gold.

The report said the demand for jewellery, bars and coins reached 92.2 tonnes last year in Viet Nam, a 20 per cent year-on-year growth. Thus, the country ranked seventh in the world gold consumer demand.

At the same time, the report figured out that the unprecedented level of global consumer demand for gold in 2013 was led by the demand in China and India, with the former becoming the world's biggest gold market.

Meanwhile in the Western markets, the consumer demand also remained strong, with the US, in particular, having a robust year in the jewellery, bar and coin sectors.

The report concluded that 2013 proved to be the year of the consumer, with the gold jewellery demand close to pre-crisis levels and investment in small bars and coins hitting a record high. The result was the annual worldwide gold demand of 3,756.1 tonnes, valued at S$170bn.

However, outweighing the impressive consumer demand were the effects of Exchange - Trade Fund (ETF) outflows and lower central bank buying, resulting in the 2013 demand being 15 per cent below the strong volumes recorded in 2012.

KIS sees VN-Index staying on upward path

The stock market of Viet Nam is expected to reach 650-700 points this year due to investment flows from both domestic and foreign investors, said KIS Vietnam Securities Corporation (KIS).

Hang Jin Yun, head of KIS's Market Department, told a conference on the market's outlook, held in Ha Noi yesterday, that Viet Nam has been one of the fastest growth markets in the world.

"The VN-Index has been on an upward trend compared with other countries in the region," Yun stated, adding that the market would have the potential to increase by 25 per cent over last year.

He noted that the domestic stock market had suffered losses in recent trading sessions. However, the fall was not remarkable because the market has seen an overall surge since the beginning of the year.

With favourable factors including a stable macro-economy, improved business profits and enhanced expectations from the restructuring process, the stock market will be a more attractive investment channel compared to other channels, such as gold, real estate and bank savings.

As of February 14, 2014, the VN-Index rose 13.4 per cent, while the HNX-Index posted 16.1 per cent growth over the same period last year.

Shares in the energy, IT, industry, finance and banking sectors had a relatively high growth rate.

KIS expected GDP to rise 5.5-6 per cent this year, while exports, which were forecast to have a growth rate of 10 per cent, and foreign direct investment would continue to be the main drivers for the country's growth.

In particular, he said, stocks in the garments and textiles, footwear, house wares, and seafood sectors, as well as the coffee sector, would enjoy benefits after Viet Nam joins the Trans-Pacific Partnership (TPP) agreement since these products had high exports to the United States.

Fujifilm launches latest compact system camera

Fujifilm yesterday launched its latest compact system camera: an all-out DSLR with a retro look.

The X-T1 has built-in Wi-Fi connectivity, allowing the camera to be operated remotely through a smartphone using the new Fujifilm Camera Remote app for iOS and Android devices.

The X-T1 uses an APS-C format, 16.3 million-pixel, X Trans CMOS II sensor and an EXR processor.

The camera is compatible with UHS-II SD format cards, so it can shoot continuously at a maximum rate of 8 frames per second to create up to 47 fine JPEG files or 23 simultaneous raw and JPEG files.

The X-T1's viewfinder is larger than normal and has a magnification factor of 0.77x, which Fuji claims is the highest offered by any digital camera.

The X-T1 has the world's fastest phase detection autofocus speed for digital cameras, at 0.08 second, with a 4/3-inch or larger sensor.

Another major change in design is that the electronic viewfinder has shifted to the centre of the camera from its rangefinder-like corner position.

Reform efforts to prove decisive in economic recovery: workshop

The Government’s endeavours in renovating institutions and bettering the legal system have been seen by some as decisive factors likely to support economic recovery in 2014 and beyond.

Economic experts at a workshop held in Ho Chi Minh City on February 21 shared the view that Vietnam’s economy will regain its growth in the next two years when businesses pin high hope on sustainable development.

Sandeep Mahajan, the World Bank’s Lead Economist for Vietnam, said the world economy still faces risks in 2014, but suggested developing countries will swiftly conduct reform of fiscal and monetary policies.

To spur growth and limit risks, Vietnam should heed the restructuring of financial and banking institutions with the involvement of the private sector, he advised.

However, according to Dr. Tran Du Lich, Vietnam will face short, mid and long-term challenges this year and further ahead, as the country’s low cost-based industry has lost its competitiveness during the process of regional and international integration.

In the 2012-2013 period, the country’s export revenue mainly depended on foreign direct investment (FDI) enterprises, he said, adding that the support industry – a key factor to raise local production and cut costs - has failed to fulfil its demands.

The agriculture sector, which holds a lot of promise due to the huge rural population , has not been fully tapped in the context of globalisation, he noted.

Therefore, the maintenance and restructure of the macro-economy is the main focuses of the Government’s policies in 2014 and next year, the workshop heard.

Participants at the event were unanimous that a cautious and flexible monetary policy should set a credit growth target of around 15 percent annually.

They highlighted the increase of the budget overspending cap to 5.3 percent of the gross domestic product (GDP) and the issuance of additional Government bonds worth 170 trillion VND (8.1 billion USD) in the 2014-16 period.

Such moves are expected to help Vietnam fulfil its growth targets of 5.8 percent in 2014 and about 6 percent in 2015, while curbing inflation at around 7 percent annually.

Dr. Le Xuan Nghia, Director of the Business Development Institute, said this year’s export growth in 2014 is expected to be the maintained or even increased compared to last year, with significant contributions made by local businesses.

More foreign investment will be poured into the country and the amount of disbursed capital will increase, he said.-

Mekong Delta province targets 4 mln tourist arrivals

The Mekong Delta province of Kien Giang will work to attract at least four million tourist arrivals, including 185,000 foreign arrivals, in 2014, according to the provincial Department of Culture, Sports and Tourism.

The department said the locality also targets 1.3 trillion VND (61.1 million USD) from tourism.

In order to reach the goal, many comprehensive measures will be deployed, including increasing investment promotion and enhancing campaigns to introduce and strengthen its tourism trademark, it said.

In addition, the province will also focus on upgrading the infrastructure of the tourism sector, while continuing its cooperation with neigbouring localities such as Can Tho city, An Giang and Ca Mau provinces as well as those in the Mekong Delta Economic Region to boost tourism development.

More attractive events will be organised throughout the year, while typical tours, tourism products and services will be developed to lure visitors, the department said.

The province will also pay more attention to the domestic market and design more policies to attract foreign tourists, it added.

With abundant natural beauty spots such as Phu Quoc Island , Ha Tien beach and U Minh Thuong National Park, Kien Giang possesses a lot of potential for tourism development.

Last year, the province welcomed over 3.8 million arrivals, a rise of 8.2 percent year on year, earning 1.12 trillion VND (52.64 million USD), up 27.6 percent.-

Social policy bank raises 350bln in VND bonds

The Vietnam Bank for Social Policies (VBSP) raised 350 billion VND (16.6 million USD) worth of three-year Government bonds via a bid hosted by the Hanoi Stock Exchange on February 21.

They will yield an annual interest of 7.5 percent, 0.34 percent lower than that reached at the February 14 session.

Meanwhile, neither bidder won five-year bonds valued at 500 billion VND (23.8 million USD).

Through three tenders since early this year, the VBSP has mobilised over 1.4 trillion VND (66.6 million USD).-

Ca Mau targets 910,000 tourists in 2014

The southernmost province of Ca Mau has set a target of greeting 910,000 foreign and domestic visitors and earning 245 billion VND (11.5 million USD) from tourism activities in 2014.

To realise the goal, the local tourism sector has hastened the implementation of its master tourism development plan, while focusing on promotion and cooperation activities in the field.

It has mobilise d resources to develop and upgrade the tourism infrastructure system, accelerating projects so that many will come into use this year.

Ca Mau has also paid more attention to improving its quality of service along with creating connections with other nearby localities in order to lure more arrivals to the province.

It will also continue performing the National Action Plan on Tourism in the 2013-2020 period, aiming to achieving sustainable tourism development in association with preserving and promoting the nation’s cultural values and protecting the environment.

According to preliminary statistics, as many as 27,000 holiday-makers have come to the locality so far this year, representing a year-on-year increase of 19 percent.

The local tourism sector raked in 22 billion VND (about 1 million USD) in turnover in the period, 23 percent higher than the same period last year.-

EVN to add 1,656MW to electricity output in 2014

The Electricity of Vietnam says the group will put into use five new turbines at both thermo- and hydro-electric power plants within this year, which have a combined capacity of 1,656MW.

The Vinh Tan 2 thermo-electric power plant alone has a capacity of 1,200MW, while Turbine No.2 at the Hai Phong 2 thermo-electric power plant will add 300MW and the Song Bung 4 hydro-electric power plant, 156MW.

At the same time, the group will strive to complete work on a 500MW turbine at the Mong Duong 1 thermo-electric power plant and a 600MW generator at the Duyen Hai 1 thermo-electric power plant by the end of the year.

Meanwhile, five projects will be launched to build three more thermo-electric power plants and expand two hydro-electric power plants, which are expected to add 2,555MW to the group’s total output.

Besides power generation projects, EVN is accelerating the pace of construction on 192 transmission systems, particularly six key systems to ensure power supply for the southern region.

Another priority for this year is projects to upgrade the electricity transmission network in Hanoi.

The group has also set the target to complete several projects to bring electricity to poor and ethnic minority areas in Kien Giang, Tra Vinh, Soc Trang, Dien Bien and Lai Chau provinces.

Early this year, the Government requested Electricity of Vietnam (EVN) to ensure the national power supply from 2014.

In 2013, the group generated and purchased over 127.8 billion kWh of electricity, up 8.47 percent from 2012.-

Metecno Vietnam opens new panel production line

Metecno Vietnam, part of the Netherlands’ Metecno Group, has launched a production line at its already running factory in Dong Nai province’s Bien Hoa II Industrial Zone.

The $1.3 million facility can produce insulated panels 25-200mm thick and up to 11.5 metres in length with PU and mineral wool as core materials for use in roofs, walls, and ceilings in the building industry, said Metecno Vietnam general director B.T. Sudarshan.

He added that the company first established their Dong Nai factory in 1996 to produce steel roofing, walling and accessories. However, the Metecno group’s core business is to provide complete solutions, thus the Vietnam unit has been supplying imported insulated panels since 2005.

Sudarshan said that as Metecno Vietnam was already recognised as a supplier of reliable panels, the group’s shareholders were confident in investing into hi-tech European equipment and sharing unique Metecno know-how.

Metecno’s major customers in the country include Perfetti, Wonderful Saigon Electric, Glomed, Imex Pharma, Masan, Biomin, and P&G in Binh Duong province, Sanyo Digital Camera, Fujitsu and Metro Cash & Carry in Dong Nai province, and Hoya Lens, Stanley Electric, General Electric and Metro Cash & Carry in Hanoi.

Sudarshan’s announcement of the new production line was part of the Metecno Vietnam’s 18th anniversary ceremony held in Ho Chi Minh City on February 18.

Tax exemption for rice, tobacco import from Laos

Laotian rice and tobacco imports will experience tax exemptions to meet quotas, according to the Circular 06 on tariff rate quotas in 2014 recently issued by the Ministry of Industry and Trade.

To qualify for the exemption, cargo must have a certificate of Origin Form S granted by the Laos People’s Democratic Republic and pass through specific border gates when entering Vietnam.

Currently only Vietnamese businesses with a license to sell tobacco are permitted to import the product.

Southern key economic zone development plan issued

PM Nguyen Tan Dung has issued a plan to respond to a Political Bureau conclusion on the overall development in the southern region to 2020.

The Political Bureau adopted Conclusion No. 27-KL/TW on August 2, 2012 to realize its Resolution No. 53-NQ/TW dated August 29, 2005 on accelerating socio-economic development and defense and security maintenance in the South Eastern region and the Southern key economic zone towards 2020.

Accordingly, ministries and agencies under the Government, the People’s Committees of cities and provinces in the said above areas will work together to realize measures on accelerating the socio-economic development and guaranteeing the national defense and security.

Besides, the plan aims to develop value-added and high-technology-contained industries, increase the competitiveness of major industries such as mechanics, electronics, promote services such as finance, banking, trade, telecommunication, and enhance sustainable agriculture development.

Provinces need to complete an infrastructure system connecting localities in the region, give priority to developing green and ecological urban areas, upgrade highways and build Long Thanh international airport by 2020.

The plan also aims to strengthen cooperation on investment promotion, technology transfer and labor supply between localities in the Southern key economic zone with others in the Mekong Delta, the Central and the Central Highlands.

The South Eastern region and the Southern key economic zone include Ho Chi Minh City, Dong Nai, Binh Duong, Ba Ria-Vung Tau, Tay Ninh, Binh Phuoc, Long An and Tien Giang.

Viettel awarded Hero of the Armed Forces title

The military-run telecom firm Viettel has been awarded the Hero of the Armed Forces insignia for its significant contributions to the development of mobile networks and internet services in Vietnam.

Speaking at a ceremony on February 20, Vice President Nguyen Thi Doan praised the corporation’s efforts to overcome economic difficulties and become the largest mobile network operator in Vietnam.

She added that the corporation should continue to invest in research in order to master advanced technologies and maintain its important role in the economy.

With its extensive network, Viettel has spread telecom services to every region of the country, establishing high rates of mobile phone and internet penetration.

According to CEO Hoang Xuan Anh, Viettel, which was established in 1989, is now one of the largest corporations in Vietnam with revenues estimated at US$7.7 billion in 2013.

Viettel currently has a network of over 50,000 base transceiver stations and nearly 180,000 kilometres of optical fibre cables.

It is the only mobile carrier to have full network coverage over the country’s remote areas and islands.

In addition to providing telecom services, Viettel also designs and produces a number of military devices to help enhance the combat capacity of the Vietnamese army.

Tra fish export recovers despite bad news

Though recent unfavorable information about exporting markets is forecast to affect Vietnam’s tra fish export this year, tra fish processors still report signals of recovery in terms of both exports and domestic consumption.

Nguyen Van Dao, general director of Go Dang Joint Stock Company (GODACO) in Tien Giang Province, said exports o Europe are improving with a rise in both export volume and selling price.

Statistics of the General Department of Customs showed that the seafood export turnover, mainly tra fish and shrimp, to the four major markets (the U.S., EU, Japan and South Korea) increased strongly in January,

Vietnam exported US$156 million worth of seafood products to the U.S., up nearly 97% year-on-year, while the respective figures recorded in EU, Japan and South Korea were US$96.5 million and rising 11.8%, US$87.3 million and up over 22%, and US$48 million and increasing nearly 31%.

Dao predicted that sales of Vietnam’s tra fish, especially frozen fish fillets, would continue rising due to the higher global demand and the recovery in the European market.

An improvement in exports and a shortage of materials have pushed up the price of live tra fish since the Lunar New Year holiday.

Nguyen Ngoc Hai, chief of O Mon Tra Fish Cooperative in Can Tho City, said that a kilo of live tra fish in the Mekong Delta region sold for VND23,700-24,000, or VND1,000-1,500 higher than the price late last year.

According to Hai, tra fish production has dwindled after several years of hardship for both farming enterprises and farmers, with many incurring losses and facing bankruptcy. Meanwhile, the demand and the price have increased.

“At O Mon Tra Fish Cooperative, the supply volume is currently around 5,000 tons per year, which is equivalent to only one-third of the volume in the heyday of tra fish,” Hai said.

With the current price of tra fish material, the profit for farmers and enterprises is at least VND1,000 per kilogram, Hai added.

As reported by the Vietnam Association of Seafood Exporters and Producers (VASEP) earlier, Russia had decided to temporarily stop importing some seafood products, including tra fish, from Vietnam from January 31.

In addition to the impacts of Russia’s import suspension and restrictions in the new legislation Farm Bill in the U.S., Vietnam’s tra fish also faced warnings in the EU market.

According to VASEP, the warning resulted from the Netherlands’ Seafood Connection B.V on January 27 reporting some Vietnamese enterprises using the additive E500/E501 when processing frozen tra fish fillets. The substance is banned in seafood processing in both EU and Vietnam.

Investors pledge over VND18.2 trillion in Nghe An

Nghe An Province’s New Year meeting with investors held last Saturday helped the province to attract an additional VND18.227 trillion of pledged capital from domestic and foreign investors.

At the meeting with nearly 500 businesses, the provincial government signed nine investment agreements having total pledged capital of nearly VND17 trillion and granted investment certificates to three projects worth VND1.3 trillion.

One of the investment agreements signed belongs to Binh Duong Province-based Becamex IDC Corporation, which has plans to develop a service-urban-industrial park in an area of over 1,000 hectares in Nghe An Province. The project worth around VND3 trillion is expected to create a breakthrough for the province’s investment attraction and industrial infrastructure development.

Hoa Sen Group also signed an agreement to build a steel sheet plant at Dong Nam Nghe An Economic Zone with an estimated investment of VND1.5 trillion. The plant can produce up to 300,000 tons of products per year.

Meanwhile, The Vissai will spend VND7 trillion on Do Luong-Tan Ky cement plant and a terminal for cement transport. Nguyen Kim Trading Company also plans to open a commercial center in Nghe An at a cost of VND550 billion.

At the meeting, Bank for Investment and Development of Vietnam (BIDV) signed six credit contracts to provide VND4.852 trillion for investors making investments in Nghe An.

The north-central province of Nghe An is capturing much attention from domestic and foreign investors. According to provincial chairman Nguyen Xuan Duong, the province has been stepping up administrative reform and organizing many investment promotion programs.

According to Duong, infrastructure in Nghe An is improving such as the upgrade of National Highway 1A’s section in the province to be finished late this year and Vinh Airport to have a new terminal to handle 2.5-3 million passengers per year.

Vinh Airport is currently serving one international route and five domestic routes with an average of 15 flights per day.

The provincial government pledged to continue improving the investment environment, offer incentive policies, and remove difficulties for investors in registering and implementing projects.

Nghe An Province licensed 89 projects last year, with 84 projects of domestic investors worth VND13.31 trillion and the rest belonging to foreign investors worth US$21 million. The province is now home to 588 domestic projects worth VND109.59 trillion and 39 foreign-invested projects with combined pledged capital of US$1.49 billion.

There are many projects using high technology and operating effectively like TH milk processing and farming, Saigon-Song Lam beer, Hanoi-Nghe An beer, Sabeco packaging, BSE electronic component production, Muong Thanh Song Lam hotel, Metro wholesale center, Big C supermarket and many garment plants of South Korean and Japanese investors.

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