DLG, API, SDE, HPG announce shareholder transactions

Duc Long Gia Lai Group Joint Stock Company (DLG), Asia-Pacific Investment Joint Stock Company (API), Song Da Electrical Engineering JSC (SDE) and Hoa Phat Group Joint Stock Company (HPG) announced transactions of its shareholders as follows:

DLG announced that it will transfer more than 4.3 million shares of Duc Long Gia Lai Hydropower JSC to two shareholders, namely Bui Phap, Chairman of DLG, and Nguyen Van Quy, to reduce its ownership ratio from 94.8 percent to 7.1 percent, or 350,350 shares. After the transfer, Duc Long Gia Lai Hydropower JSC will no longer be a subsidiary of DLG.

API announced that Mrs. Nguyen Thi Bon, mother of Huynh Thi Mai Dung, a member of Board of Directors, registered to buy 1 million shares until January 17, 2014 to increase her holdings to 1.01 million shares.

Earlier, Nguyen Duy Khanh, a member of the Board of Directors, also registered to buy 500,000 shares until January 24, 2014 to raise his ownership to 1 million shares, or 1.89 percent stake.

SDE announced that Song Da No.11 JSC (SJE) registered to sell all 632,500 shares, or 36.12 percent stake in SDE, until December 31, 2013 to divest. On March 28, 2014, the company will pay dividends for 2011 and 2012 at a total ratio of 11 percent.

HPG announced that VOF Investment Ltd registered to buy 1 million shares to increase its ownership ratio to 4.89 percent stake, or 20.48 million shares; Vietnam Infrastructure Holding Ltd registered to buy 500,000 shares to raise its holdings to 2.31 million shares, or 0.55 percent stake. Both transactions will be carried out within a month from December 25.

VN economy sees positive prospects

Viet Nam has witnessed accelerating economic growth, economic recovery trend, and top performing stock market in Southeast Asia in 2013.

German Press Agency (DPA), Bloomberg, and The Wall Street Journal (WSJ) recently published articles, announcing economic prospects in Viet Nam in which full-year growth rose 5.42% and inflation reached a record low in ten years.

DPA reported that inflation rate fell to 6%, the lowest level in ten years.

“Viet Nam’s economy is ending the year with some positive signs after it posted its lowest growth rate last year in more than a decade”, said the Wall Street Journal.

According to the US-based newspaper, this year's growth is a sign of recovery for the economy, showing that the government's efforts to tame inflation and regain macroeconomic stability are sound and timely.

The same day, Bloomberg said that the benchmark VN Index (VNINDEX) climbed 0.6% as of 10:34 a.m. local time. It has gained more than 22% this year, the biggest advance among major Southeast Asian indexes.  

Fiachra MacCana, managing director of Ho Chi Minh City Securities Corp was quoted as saying that exports are still the main driver, especially for Viet Nam’s manufacturing industries.

Foreign bank fined for slow disclosure

Deutsche Bank AG, London Branch, was fined VND70 million (US$3,300) by the State Securities Commission for being late in reporting that it is no longer a large stakeholder in Tu Liem Urban Development (NTL) and Hoa Phat Group (HPG).

The fine was based on the Government's Decree No 85/2010/ND-CP about administrative punishments in the securities sector.

In June, the bank sold shares of NTL and HPG, reducing its holdings to below 5 per cent.

Niferco announces IPO plans

Ninh Binh Nitrogenous Fertilizer (Niferco) has recently registered for listing on the Ha Noi Exchange.

The company had a charter capital of more than VND104.87 billion (US$4.99 million) and sought the listing of more than 10.48 million shares.

The request to seek listing was approved at the company's extra-ordinary shareholders' meeting in November.

SSC approves dissolution of Sao Viet Securities

The State Securities Commission (SSC) has approved Sao Viet Securities being dissolved in accordance with the Law on Enterprises.

The securities company must report to the SSC within seven days about its procedures for dissolution so the SSC is able to issue a decision on revocation of its licence.

Previously, Sao Viet Securities announced the list of stakeholders to receive dividend payments.

Record 37 stocks delisted in 2013

The stock market of Viet Nam witnessed a record 37 companies delisted from exchanges this year, compared to 22 delisted stocks in 2012.

Of those, five stocks were delisted after merging and restructuring, 13 stocks were delisted after reporting losses for three consecutive years or due to their aggregate losses exceeding their equity.

Of note, four companies were forced to be delisted due to violating regulations when they did not publish financial information.

An Giang firms eye growing markets

Businesses in southern An Giang Province, who have managed to penetrate the HCM City, Ha Noi, and central region retail markets, will supply even more goods next year, local officials said.

Mai Thi Anh Tuyet, director of the Mekong Delta province's Department of Industry and Trade, said more than 15 businesses have signed contracts to sell products like rice, seafood, frozen vegetables, and sugar.

The domestic market holds huge untapped potential for An Giang companies following the promotional activities this year. They hope to expand to new markets like the Central Highlands and northern provinces like Lang Son.

HCM City hosts start-up and exchange expo

The Business Start-up Support Centre and the HCM City Overseas Vietnamese Students Association organised a "study abroad and business start-up" programme yesterday at the Riverside Palace Convention Centre in District 4.

The first edition of the event will see participation by nearly 400 businessmen who used to live and work abroad, former and current overseas Vietnamese students, and outstanding business start-up executives.

They also discussed labour market trends and advantages and disadvantages of being overseas Vietnamese students.

Southern region to get new power-grid

The Southern Power Corporation of Electricity of Viet Nam (EVN) has outlined a new power-grid plan for 21 southern provinces with a total value of VND4 trillion ($189.68 million).

The project includes installation of more than 1,500km of power lines as well as a 220kV grid station with power of 750 MVA.

This year, the corporation said it had saved 2.55 per cent of commercial electricity output, equivalent to 1.2 billion kWh. This result exceeded EVN's target, which was 800 million Kwh for the year (equivalent to 2 per cent of commercial electricity output).

SBV banks on steady dollar exchange ratio

The exchange rate between the Vietnamese dong and US dollar will not increase more than 2 per cent in 2014.

Governor of the State Bank of Viet Nam (SBV) Nguyen Van Binh said on Tuesday that SBV will consider adjusting the rate flexibly in order to support exports and ensure the macro- economy balance, without greatly affecting the inflation rate. He was speaking at an online conference between the government and localities on Tuesday.

In June, the SBV increased the inter-bank average VND/US$ exchange rate by 1 per cent to VND21.036 per US dollar, while allowing the market to adjust 1 per cent more. In fact, even during the most difficult times and despite false rumours, the market had not adjusted the rate by 1 per cent.

At present, the inter-bank exchange rate is lower than that of commercial banks. So, the SBV has bought a large amount of foreign currency for reserves, said Binh.

He added that the country's credit growth has reached 9.5 per cent and is expected to be more than 10 per cent by the end of this year.

Credit institutions have restructured about VND330 trillion (US$15.7 billion) in debts, equivalent to 10 per cent of outstanding debts, for businesses.

The credit institutions have repaid VND70 trillion ($3.33 billion) of bad debts from their risk provision fund. The Vietnam Asset Management Company has so far bought bad debts worth VND32 trillion ($1.5 billion), which will be worth VND35 trillion by the end of the year.

HCM City readies red carpet for Japan investors

HCM City authorities have said they are ready to listen, share the burden, and help companies resolve their difficulties as part of their efforts to attract foreign direct investment, especially from Japan.

In the first 11 months of this year the city has attracted US$101 million from Japan in 112 projects, making that country one of the three biggest investors.

Le Manh Ha, deputy chairman of the city People's Committee, said though the value is not much compared with total Japanese investment in Viet Nam, it plays an important role in the city's socio-economic development.

HCM City seeks more Japanese investment in all sectors and is always ready to help resolve obstacles investors face, he said.

Pho Nam Phuong, director of the city's Investment and Trade Promotion Centre, said in the last 12 years the city has organised many roundtables with Japanese companies to listen to and resolve their problems while investing in Viet Nam.

These have played an important role in attracting more Japanese investors to HCM City, she said.

In 2011 the roundtables received 18 queries related to tax, customs, labour, and infrastructure, and the number jumped to 26 last year, she said.

This year there have been 64 related to the Vietnamese economy, culture, and society and to many new areas like food safety and natural resources and environment, she said.

Besides providing answers, the roundtable this year also tabled many new documents, helping the Japanese investors understand about the city's FDI norms.

The HCM City authorities' efforts were appreciated by the Japanese.

Hirumitsu Hida, the Japanese consul in the city, said the roundtables have played a big role and hoped they would continue to help resolve difficulties faced by Japanese companies. Japanese investment is flowing into many countries, and HCM City should take advantage, he said.

Industrial production surges

The country's industrial production has shown signs of recovery this year, rising 5.9 per cent compared to last year, the General Statistics Office reported.

Industrial production grew significantly in all four quarters, the office said, noting that the country's IIP rose 5 per cent in the first quarter of 2013, continuing to increase 5.5 per cent, 5.4 per cent and 8 per cent in the second, third and fourth quarters.

In December alone, the country's IIP surged 7 per cent, of which the processing and manufacturing sector increased 8.8 per cent; production and distribution of electricity sector jumped 8.7 per cent; water supply-sewage-waste management soared 10.1 per cent, while the mining and quarrying sector inched up 0.7 per cent.

This year, the processing and manufacturing sector rebounded significantly, rising 7.4 per cent, much higher than 5.5 per cent growth of last year. The sector's IPP made a leap in the last quarter, surging 10.1 per cent after increasing 5.3 per cent in Q1, 6.9 per cent in Q2 and 7.8 per cent in Q3.

Some processing and manufacturing industries posting high IIP increases during the year included the garment and textile industry (up 21.8 per cent); leather and related products (up 15.3 per cent); prefabricated metal products (up 14.4 per cent); motor vehicles (up 13.5 per cent); medicinal and pharmaceutical chemistry (up 11.6 per cent) and costumes (up 10.4 per cent).

Besides the processing and manufacturing sector, production and distribution of electricity sector, and the water supply-sewage-waste management sector, also contributed to the country's IIP increase this year, as they rose 8.5 per cent and 9.1 per cent, respectively.

According to data released by the office, Da Nang topped the list of cities and provinces having high IIP growth this year with a 10.5 per cent increase. Quang Nam, Binh Duong and Hai Duong followed with jumps of 9.6, 8.7 and 8.1 per cent, respectively.

Also, HCM City and Ha Noi posted increases of 6.3 and 4.5 per cent.

Further, the office reported that the inventory index in the industrial sector improved, rising only 10.2 per cent by December 1, against a surge of 21.5 per cent early this year.

Hanoi’s tax revenue exceeds yearly target

Hanoi collected over 162 trillion VND (7.7 billion USD) in taxes this year, 0.3 percent higher than its annual target, the municipal Tax Department has reported.

The figure included more than 10.9 trillion VND (519.8 million USD) from import-export and over 151.1 trillion VND (7.2 billion USD) from domestic trade activities.

The department attributed the achievement to its tightened supervision over businesses that are in tax arrears, populisation of tax regulations, and dialogues with enterprises. It has also timely prevented and strictly dealt with tax frauds.

For 2014, the city’s sector plans to intensify the dissemination of the Tax Reform Strategy from 2011 to 2020 along with boosting the application of information technology and organising more dialogues with tax payers so as to reach tax collection targets.

New road to shorten time from Hanoi to neighbouring localities

A 26 kmsection of the Noi Bai-Lao Cai Highway linking Soc Son district in Hanoi to Vinh Phuc province is scheduled to open to traffic on December 27.

According to Le Kim Thanh, director of the Noi Bai-Lao Cai Highway project, the section is constructed at a cost of 2.554 trillion VND (120 billion USD) by Posco, a Republic of Korea contractor.

The road has four lanes allowing vehicles to travel at maximum 80 km per hour. It is expected to ease pressure for Highways 2, 32 and 70, shortening the time to travel from Hanoi to Vinh Phuc.

The Noi Bai-Lao Cai Highway is part of the Kunming – Hai Phong road corridor included in the cooperation programme among the six Mekong Sub-region countries of Vietnam, Laos, Cambodia, Thailand, Myanmar and China.

Launched in 2009 and scheduled to complete by the second quarter of 2014, the highway has a total length of 245 km crossing Hanoi and northern provinces of Vinh Phuc, Phu Tho, Yen Bai and Lao Cai.

The first phase of the project has a total investment of nearly 20 trillion VND (about 1.25 billion USD), mostly from loans provided by the Asian Development Bank.-

Hanoi real estate projects put under stricter monitoring

The Hanoi Department of Natural Resources and Environment has proposed that the municipal People's Committee revoke nearly 948ha of land from 12 institutions for violating land-use regulations.

Department director Nguyen Trong Dong said inspections found that the project investors and organisations had failed to abide by relevant rules, particularly those related to timely implementation.

They key reasons cited for delayed projects include waiting for revised plans after the capital city's administrative boundary was expanded and lack of financial capital for implementing several projects as a result of the frozen real estate market, he said.

In order to use public land more effectively, the municipal People's Committee has asked investors and relevant agencies to exercise greater care and be more strict in inspecting and handling land law violations.

In 2012, the city confiscated more than 8 million sq.m of land, according to official figures. The Committee said land that is revoked because of violations should be used for construction of public projects like schools.

With a view to improving the management of the real estate sector, the Ministry of Construction on July 31 issued Circular N°11/2013/TT-BXD prescribing the reporting regime on implementation of investment in construction and commercial operation of real estate projects.

Accordingly, from October 1, real estate projects' investors have to regularly report on the progress of their projects to enable authorities to improve oversight of the sector.

Four main aspects which need to be reported by investors include basic information about the projects; implementation progress of projects (ground clearance, construction); commercial operation of projects (capital mobilization, sale or lease of houses, land lease, land use right transfer); and project completion procedures.

Besides, the construction departments are required to update the Ministry of Construction on a quarterly and annual basis on local real estate projects, land acquisition and clearance and real estate transactions.-

Vietnam sells latest rice crop

The November Market Review by global rice market news provider Oryza has shown that the price of Vietnamese rice surpassed that of Thai rice.

According to data released on December 20, Vietnamese 5 percent broken rice was sold for 410-420 USD per tonne, down 20 USD per tonne from two weeks ago, but 10 USD higher than that one month ago.

The price of Thai rice (of the same variety), in comparison, declined 15 USD per tonne to 380 USD per tonne from two weeks ago. The price was also lower by 25 USD per tonne from one month ago.

Compared with the same period last year, the Vietnamese rice price is higher by 5 USD per tonne, while the price of Thai rice fell 170 USD per tonne during the same period.

Do Van Hao, an expert at the Institute of Policy and Strategy for Agriculture and Rural Development, said that in recent times, there have been a few instances when the export price of Vietnamese rice surpassed that of Thai rice. He pointed out that it was not the first time the Vietnamese rice price had climbed higher than the Thai rice price because such a phenomenon had occurred in the past, although for very short durations.

"There are some reasons that have pushed the price of Vietnam's rice higher than the price of Thai rice recently. First, Vietnam won a contract to export 500,000 tonnes of rice to the Philippines on November 25. The lowest price under this contract was 462.25 USD per tonne, while Thai rice fetched a price of 475 USD per tonne. That has stimulated demand for Vietnamese rice and raised export prices," he said.

"Second, Thailand has permitted its rice granaries to export rice stored from earlier harvests. Currently, its granaries store tens of millions of tonnes of rice and the increasing exports have led to falling prices," he noted.

"Third, the exchange rate between the Thai baht and the US dollar has seen an increasing trend, which has lowered the price of rice in the local currency," he added.

Echoing the same sentiment, agricultural expert Vo Tong Xuan noted that while Vietnam is exporting its latest rice harvest, Thailand is selling rice from its granaries, leading to price disparities.

"Enterprises exporting rice to China and Africa have lowered their reserves. Now, in the middle of December, we cannot purchase rice from farmers because the third crop was harvested in November. Lower supply is one of the reasons that have pushed the price higher," he said.

"I think the current price is suitable because Thailand is not lowering the price of its high-quality rice. Right now, Cambodia is harvesting a new crop and a portion of that will be exported to Vietnam."

Hao shrugged off worries about importing rice from overseas while the price is high, noting that price disparities are currently not too wide. He also pointed out that the variety of rice exported is different from that consumed in Vietnam.

Hao added: "Thai rice could, however, be imported for domestic consumption if its price is much lower than that of Vietnamese rice. Recently, Vietnam has imported large quantities of rice from Thailand, and if Thai rice is cheap and of good quality, the level of imports could increase."

According to the Vietnam Food Association (VFA), between January 2013 and December 19, the quantity of rice exports reached 6.325 million tonnes, which had a free-on-board (FOB) value of 2.735 billion USD and a Cost, Insurance and Freight (CIF) value of 2.848 billion USD.

Between December 1 and 19, the quantity of rice exported was 183,897 tonnes, which had an FOB value of 86.569 million USD and a CIF value of 91.969 million USD.

Speaking to the Vneconomy newspaper, general secretary Huynh Minh Hue said the total quantity of rice exports for 2013 is estimated at around 6.6 million of tonnes, lower than expected. The VFA had set a goal of exporting 7.5 million tonnes of rice at the beginning of 2013.

Mobile phone store chain eyes stock market listing

The Mobile World Investment Company expects to be listed on the Ho Chi Minh Stock Exchange by the end of the second quarter next year.

The firm plans to submit its application for stock market listing to the regulator early in 2014, CEO Nguyen Duc Tai said. The move follows prompting from the firm’s major foreign investors.

International corporate financial investor CDH, Mekong Capital Enterprise, and Best Buy International’s former CEO Robert Willet are the three major foreign investors prompting the move for the local company, which runs the The Gioi Di Dong and Dien May. The former is Vietnam’s largest mobile phone store chain with shops in all cities and provinces, while the latter is a chain of home appliances and electronics stores.

Mekong Capital now holds a greater than 25.8 per cent stake in Mobile World Investment. CDH and Willet, who developed Best Buy International’s best buy mobile format, together own over a 20.41 per cent stake transferred by Mekong Capital in April 2013. However, Willet and CDH invest independently. Willet is also a new board member to the local firm and a strategic advisor.

More than 51.26 per cent of the company’s stocks are still in the hands of the five founders of the Vietnamese firm, including CEO Tai. Regarding the current unfavourable stock prices, he said the Vietnamese economy could continue to experience difficulties in 2014 but getting listed was expected to attract more capital for further expansion.

The company estimated its revenue this year at VND7.82 trillion ($372.4 million), a 25 per cent increase against 2012, with profits expected to double to VND250 billion ($11.9 million).

Established in 2004 with just four mobile phone shops in Ho Chi Minh City, the firm now has more than 200 stores nationwide.

Seafood exports to US to face more hurdles

Vietnamese seafood exporters, especially pangasius processors and exporters, may face new challenges in exporting their products to the US next year if a new law takes effect, said a senior trade official at a recent seminar in Ho Chi Minh City.

Accordingly, if the catfish management program under the US Farm Bill 2012 is transfer from the US Food and Drug Administration (FDA) to the US Department of Agriculture (USDA), Vietnamese pangasius exports to the US will be in a big trouble, said Dao Tran Nhan, Vietnamese Minister Counselor for Trade in the US.

The US Senate and the US House of Representatives have held a joint meeting on the transfer, he said.

If the transfer is realized, the USDA will apply similar US standards to Vietnamese pangasius products, which means that the local farmers and exporters must meet the same standards from all the relating processes, from farming to processing and packaging, to be licensed to export to the US.

As a consequence, it will take local exporters and processors at least 5-7 years to meet such standards, and before that, local exports cannot export even 1 kg of pangasius product to the US, he added.

Currently, Vietnamese state authorities is trying to petition for the transfer, Nhan said.

In addition, the US authorities also have administrative review programs for Vietnamese pangasius product for levying anti-dumping taxes every year.

Previously, the US often took Bangladesh as the reference country to compare prices, but in 2012, it turned to Indonesia as the reference. As a result, the Vietnam Trade Office in the US Trade is working with lawyers and business consultants to address the problem.

But in fact it is quite difficult since the data gathered from Indonesia is more updated than that taken from Bangladesh. Indonesia is also the larger exporter of pangasius products compared to Bangladesh, and thus, easier to be picked as a representative for price reference.

According to Truong Dinh Hoe, general secretary Vietnamese Association of Seafood Exporters and Processors (VASEP), US is the biggest export market for Vietnamese seafood products with export revenues hitting $1.24 billion in January –October, up 22.26% compared to the same period last year.

Seafood exports to the U.S are expected to reach $1.74 billion in 2013, up 6.7% year on year, according to the VASEP chief.

In general, in the first 11 months of 2013, Vietnam earned over $20 billion from trade surplus with the US with main export items including footwear, seafood, and clothing.

Accordingly, Vietnam’s exports to the U.S. reached $23.2 billion, growing 22.5% compared to the same period in 2012, while imports from the US was estimated at only about $5 billion, up 5.7% year on year .

Estimated total annual export turnover in 2013 may exceed $25 billion for the first time, bringing the trade surplus with US to approximately $21-22 billion, partially offsetting large trade deficit from China market, said Nhan.

With the projected export revenues, exports to the US will account for nearly 20% of the total export turnovers of Vietnam in 2013.

Vietnam-South Africa trade rises 17% this year

Two-way trade between Vietnam and South Africa is expected to hit US$875 million in 2013, a year-on-year increase of nearly 17%.

Of the total figure, Vietnamese exports generated US$760 million.

Major exports included mobile handsets and components, footwear, garments, rubber, rice, coffee, pepper, cashew nuts, chemicals, and electronics.

Vietnam imports metals, iron scraps, chemicals, and footwear and garment accessories from South Africa.   

Le Kinh Thang, Vietnamese trade counsellor to South Africa, said the two countries have big potential for stronger trade ties, but they yet to fully tap their potential.

He suggested both sides need to examine each other’s business environments and needs more frequently, with a focus on commercial competitiveness, and accelerate trade promotion to facilitate business operations.

Thang called on Vietnamese businesses to penetrate deeper into the South African market through trade fairs and exhibitions.

Rice exports nosedive in December

Vietnam shipped 183,897 tonnes of rice between December 1-19, a steep fall of 55% compared to the same period last month and 60% over last December.

According to global rice price website Oryza, Vietnam is likely to export 6.7 million tonnes of rice in 2013, and its FOB price dropped 5% to US$432 per tonne on average.

However, December’s FOB price rose 6% over November to US$471 per tonne.

The Vietnam Food Association (VFA) said Vietnam’s rice export volume totalled 6.325 million tonnes between January 1 and December 19, valued at US$2.735 billion (FOB) or US$2.848 billion (CIF).

The 5% broken rice ranges from VND8,500 to VND8,600 per kilogram, the 15% broken rice is sold for VND8.200-VND8.300per kilogram, and the 25% broken rice for  VND7,900–8,000 per kilogram.

Ba Ria-Vung Tau boosts exports to Russia

The southern province of Ba Ria-Vung Tau province is seeking to increase its exports to Russia – one of its potential trade partners.

Nguyen Hong Linh, Chairman of the provincial People’s Council, was speaking at a December 25 reception for Ivan Melnikov, visiting Vice Chairman of the Russian State Duma.

Linh said investment cooperation between Ba Ria-Vung Tau and Russia has been strengthened over the years, primarily in oil and gas services, tourism, maritime, and construction.

The Vung Tau-based Vietnam-Russia Oil and Gas Joint Venture Enterprise (Vietsovpetro) has become an exemplary role model for efficient cooperation between the two countries, he said.

The province has signed memoranda of understanding on cooperation with three Russian localities – Rostov Na Dony, Sverdlovsk and Nenetskiy autonomous region.

It is a major contributor to the increasing trade ties between Vietnam and Russia, exporting its key items such as seafood, cashew nuts, and garments.

Linh said Ba Ria-Vung Tau creates the best possible conditions for Russian nationals to live and work in the province, recalling the voting for the Russian Presidential Election in March 2012.

A wide range of cultural exchange activities have been held, helping deepen the relationship between the two peoples.

Mobile phones top export item list

Vietnam earned US$21.5 billion from exporting mobile phones and components in 2013, a year-on-year increase of 69.2%, and making the product the biggest foreign currency earner.

This is the first time mobile phones and components have topped the list of Vietnam’s key export items, according to the General Department of Customs.

The sharp increase in its export turnover was attributed to Bac Ninh-based Samsung Electronics Vietnam plant’s contributions. Last year the plant made up 98% of Vietnam’s mobile handset and component exports.

This year, mobile phones and components accounted for one fifth of the country’s total export turnover, and 50% of the trade sector’s growth.

In the export item list, garments ranked second, earning US$17.9 billion, and computers and components placed third, bagging US$10.7 billion.

Other key exports include footwear (US$8.4 billion), crude oil (US$7.2 billion), wood and wooden products (US$5.5 billion), and handbags, suitcase, umbrella and hat (US$1.9 billion).

Notably, the rapid growth of the phones and electronics was mainly driven by foreign-invested businesses such as Samsung, Intel, Canon, Nidec, Fujitsu, Brother, Panasonic, Renesas, Foxconn, and Bosch.

A bonanza year for the fisheries sector

Despite capital shortages, high prices of input material, and adverse weather, the fisheries sector has put in a good performance in 2013, maintaining high growth and export markets.

Statistics show the country’s total aquatic output reached 6.05 million tonnes, a year-on-year increase of 2.2%, of which offshore fishing hit over 2.7 million tonnes and aquaculture generated 3.34 million tonnes.

2013 also marked a bumper harvest of white-legged shrimp, raking in US$2.5 billion from exports, increasing nearly 33% over 2012 and making up 44% of the sector’s total export value.

At a conference in Hanoi on December 25, the Vietnam Directorate of Fisheries reported the sector has prevented epidemics, diversified varieties, and expanded overseas outlets for Tra (pangasius) fish – a key seafood export item.

It has expanded farming areas and applied the latest farming technology, including environmentally friendly VIETGAP, to ensure the quality of product for domestic use and for export.

The sector has also invested intensively in research and development to protect fishery resources and fishing grounds.

Vu Van Tam, Deputy Minister of Agriculture and Rural Development, said in 2014 the sector aim to catch 6.2 million tonnes of fisheries, including 2.6 million from offshore fishing.

Overseas investment still spontaneous

Vietnam’s overseas investment aims to boost its economic growth and raise its prestige on the international market. However, it remains limited.

Despite efforts to complete the legal framework for overseas investment, policy making is too slow going to help iron out snags in the management of investment capital and post-checking as the management role of the Ministry of Planning and Investment (MoPI) and local management agencies is not clarified.

In addition, there are no sanctions against local businesses failing to make a full report on the implementation of their overseas projects.

State representative offices overseas are run to a certain extent, like embassies, consulates and trade offices, but not all have actively taken part in promoting overseas investment. Some are even ignorant of the operational projects, and investors then need to keep their eye on.

For this reason, not a few investors have run into difficulty when their projects get off the ground in countries of residence, according to the Ministry of Trade and Industry.

In fact, overseas investment is diversified in both market share and scales of operation.

According to the MoPI, by March 20, 2013, Vietnam had 742 investment projects in 59 countries and territories, mostly in Laos, Cambodia, Russia, Africa, America, Australia, the US, Singapore and Japan, with a combined capitalisation of US$15.5 billion, mainly in mining, agriculture, forestry, seafood processing and electricity.

The MoIT says as a general strategy for overseas investment is still in the making, no incentive measures have been put in place so far and no agencies in charge of collecting are providing information about the investment trend, legal mechanisms and business opportunities overseas.

In the meantime, many countries have established their representative agencies abroad to seek investment opportunities, like the Japan External Trade Organisation (JETRO) and Korea Trade Investment Promotion Agency (KOTRA), which often arrange fact-finding tours for their businesses.

Seemingly, Vietnam is focused more on attracting foreign investors into the country than promoting investment overseas.

At a recent commercial consular conference, MoIT Minister Vu Huy Hoang urged trade offices to get updated on the investment environment and market trend aboard and propose practical solutions to help domestic investors operating in countries of residence, Hoang emphasised.

Cooperatives’ operation capacity enhanced

The cooperative alliance of provinces and cities in the Central and Central Highlands regions has targeted to improve its cooperatives’ operation capacity while strengthening management and developing production and business plans.

The plan was unveiled at a conference in Quang Nam province on December 25 to review the alliance’s performance in 2013 and discuss orientations for 2014.

The conference underscored next year’s task of developing cooperatives in combination with the implementation of local programmes and projects, contributing to economic restructuring and building new rural areas in the regions.

The alliance has over 5,000 cooperatives and 65,000 cooperative groups involving various fields, such as agriculture-forestry-fishery, transportation, services and construction.

Apart from developing production and business to help increase income for cooperative members, the alliance organised over 100 training courses for more than 3,200 cooperative managers and members to improve their capacity on management, inspection and internal auditing.

It also organised activities to help cooperatives in trade promotion and technology transfer.

Car buyers wait for reduced fees

Auto sales in HCM City are likely to dip this month because many customers are waiting for a registration fee cut to come into effect from January 1, 2014.

The new fee, calculated at 10% of the value of vehicles with less than 10 seats, will be less than the current registration fee of 15%. For example, if a customer orders a car worth VND1 billion (US$47,600), he/she will save VND50 million (US$2,380) – not a small sum in the context of the current economic problems.

Nguyen Tuan Anh, salesperson at the Honda Kim Thanh showroom in District 11, told VnMedia online that sales at his showroom are estimated to dip by 20-30% this month compared with November, because customers are waiting for the registration fee cut.

Meanwhile, some other showrooms in the city said that their sales decreased by half compared with previous months.

To boost sales, many automobile firms are carrying out promotion programmes, especially during the Christmas and New Year holidays.

Hyundai has cut prices by VND70 million (US$3,330) for the Isuzu model. Vina Mazda is offering gifts on the occasion of Christmas and the New Year holidays, and Thaco Kia is offering thousands of gifts worth between VND3 million and VND10 million (US$142-476) to customers.

Buying a car at the end of 2013, but paying the registration fee early in the New Year is being seen as a wise option. At a Kia showroom in the city, Ho Trung Dung, a local resident, said he has decided to buy Carens S 2014 for his family members to enjoy the spring during the coming lunar New Year (Tet). He has paid a deposit on the car to avail of the promotional gifts which are being offered by the showroom in December only. But he will receive the car after January 1, 2014 to avail of the registration fee cut.

HCM City was the city that was charging the highest registration fee of 15% in Vietnam. After that fee is cut in the New Year, Hanoi will become the city that charges the highest fee of 12%. The registration fee charged by other cities and provinces is 10%.

Ministry assures sufficient supply of goods, stable prices

The Ministry of Industry and Trade yesterday said it was committed to ensure adequate availability of goods across the country during the upcoming Tet (Lunar New Year) holiday.

Further, officials said they have taken action to assure prices remain at normal levels during the holiday period, while intensifying checks to stem the influx of counterfeit products.

Answering people's questions during an online meeting held on the Viet Nam Government's web portal, Deputy Minister of Industry and Trade Ho Thi Kim Thoa said that price stabilising programmes, which are aimed at keeping the prices of all commodities constant during peak season, kicked in much before Tet, and will last even after the festival.

"There have been many enterprises that joined the programme with different types of goods, as well as selling places," Thoa said, adding that the number of enterprises have been increasing year by year.

The trade official said that in 2011, there were 6,400 locations that were covered by price stabilising mechanisms, but last year their number rose to about 8,000, apart from some mobile sale outlets, not only in big cities but also in remote areas and industrial zones.

"Enterprises joining the programme have pledged to keep open their businesses until the last few days before Tet. For example, many in HCM City have pledged to stay open until the last day of the lunar year and then re-open soon after the Tet period," she added.

According to Thoa, the price stabilising programmes have been expanded to include other commodities also, besides the traditional essential commodities that are already covered.

"Moreover, many localities have focused on co-operating with each other in attaining a balance or coordinate transportation of goods, as per requirements, a move that has led to formation of new links among them," she said.

However, the trade official admitted that counterfeit and illegal-imported products were available in the market.

"We have issued instructions to all the relevant sectors and localities to intensify inspections, as well as exercise control on the issue," she said, adding, "we will also work closely with the ministries of health, agriculture and rural development to inspect food safety and goods' quality."

The Vietnamese Government's price stabilising programmes have been implemented and promoted over the last five years, especially during holidays, to ensure that prices do not skyrocket, thus saving customers from artificial inflation when they need goods the most.

NA Chairman urges agriculture revamp

Application of science and technology is vital to boost agriculture, emphasised National Assembly Chairman Nguyen Sinh Hung at a meeting held yesterday.

The meeting was conducted to review the five-year implementation of the Party Central Committee's Resolution 7 on agriculture, farmers, and rural development.

Hung is also the chairman of the committee to implement the resolution.

Presenting a report at the meeting, Minister of Agriculture and Rural Development Cao Duc Phat stated that the GDP between 2009 and 2013, in the field of agriculture, forestry, and aquaculture, has annually averaged 2.9 per cent.

In 2012, agriculture contributed an estimated US$27.5 billion in export revenues to the economy.

Regardless of this achievement, the sector is at its turning point to improve its competitive level, coupled with issues such as alarming food safety, low-quality agricultural products, human resource shortage, stagnant restructuring process, and a widening income gap between the rural and urban areas.

"One of the most notable results of implementing Resolution 7 is the rapid decline in the number of poor households, and by the end of 2013, the percentage of poor households in rural areas has reached 12.6 per cent. Farmers also average an annual income of nearly VND20 million ($952)," Phat added.

However, Minister Phat admitted that some localities are not proactive in mobilising resources to build new rural areas and simply wait for state and provincial funding. Farmers are also struggling to earn a sustainable livelihood through rice cultivation.

Chairman Hung also emphasized the need for localities to incorporate agriculture in their developmental strategies and should encourage the application of science and technology and the use of machinery in order to boost agricultural production.

He urged that the agricultural development needs to be integrated with sustainable poverty reduction and farmers need to play a vital role in building new rural areas.

Nguyen Quoc Cuong, chairman of the Viet Nam Farmers' Association, also agreed that farmers and rural residents lead difficult lives and are constantly coping with inept management in key areas like fertilizers, pesticides, dwindling land use, and access to funding resources.

Can Tho out in front of Mekong progress

Ten years after becoming a centrally governed city, Can Tho has been identified as the spearhead of socio-economic development in the Mekong Delta.

Speaking at a press meeting to celebrate ten years as a central city yesterday, Tran Thanh Man, Secretary of Can Tho Party Committee, said the city's economy grew at an average of 14.5 per cent a year in the 2004 - 2013 period, with its size reaching VND62.6 trillion (nearly US$3 billion) this year, a 3.5-fold increase from 2004.

The city's agriculture and aquaculture sector rose by 2.86 per cent; the industrial and construction sectors 17.22 per cent; and the service sector by 17.54 per cent.

This year it also attracted 58 foreign direct investment projects with total registered capital of $885 million, nearly six times the 2004 figure.

The average income of its inhabitants has risen from VND10.3 million in 2004 to VND62.9 million (nearly $3,000) now, according to figures released at the press meeting yesterday.

Four new universities have been established and 83 of the city's communes are linked by proper roads.

Other major infrastructure development include a terminal at Can Tho International Airport, Cai Cui Seaport, Can Tho Bridge, and the first turbine of the O Mon Thermal-power plant.

Can Tho has introduced an "electronic one - stop" mechanism at all administrative agencies from the commune to city levels.

The level of sastisfaction with administrative processes has greatly improved, according to authorities.

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