Agricultural exports earn US$17.98 billion in eight months

Main items of farm produce are down in export volume, says the Ministry of Agriculture and Rural Development (MARD).

Major agricultural exports are estimated at US$8.99 billion (down 11.7 percent), but seafood shipments at US$4 billion, (up 1.3 percent) and forestry products up 11.7 at US$3.52 billion.

Rice shipments are about 4.69 million tonnes worth US$2.05 billion, down 15.7 percent in volume and 18.4 percent in value compared to the same period last year as the export price remained at a low level of US$438.49 per tonne on average, down 3.2 percent compared to last year’s figure.

Coffee exports total 974,000 tonnes worth US$2.09 billion, down 23.2 percent in volume and 22.5 percent in value.

Other major export commodities include rubber earning US$1.52 billion, (up 4.6 percent), cashew nuts US$1.07 billion (up 18.9 percent) and pepper US$677 million, (up 20.4 percent).

Another steam drum installed at Mong Duong thermo power plant

The Vietnam Machine Installation Corporation (Lilama) on August 26 successfully installed steam drum 1B of the Mong Duong coal-fired power plant in the northern Quang Ninh province.

The successful installation of the 160-tonne boiler drum marked a new stage in building the power plant.

The plant is one of the two facilities in the Mong Duong Electricity Centre - part of the National Electricity Development Plan for 2006-2015.

Under a contract signed by Lilama and the main contractor, Huyndai Engineering & Construction Co Ltd, Lilama will install all the plant’s electro-mechanical equipment from December 2012 to October 2015.

Mong Duong 1 with two turbines will have a combined capacity of 1,080 MW, generating 6.5 billion kWh of electricity per year. The first and second turbines are expected to become operational in the first and third quarter of 2015, respectively.

Sumitomo takes part in Vietnam’s e-commerce market

Japan’s Sumitomo group will participate in e-commerce business in Vietnam and Malaysia, according to Nikkei Newspaper.

In the initial stage, Sumimoto group will sell food, household utensils and cosmetics mainly to young customers who like Japanese products.

To corner the Vietnamese market, the group has already bought a 30 percent share of a HCM City-based company specializing in buying and selling stationeries and clothes on the internet. It plans to increase the number of its items from 40,000 to 100,000 by 2015.

Together with Vietnam, Sumitomo has set up a branch to operate this December in Malaysia.

Rice export earnings hit over US$2.05 billion

Vietnam’s total rice exports in the first eight months of 2013 are estimated at 4.69 tonnes worth US$2.05 billion.

According to the Ministry of Agriculture and Rural Development, the total volume of rice shipments in August was just 463,000 tonnes worth US$202 million due to a decline of 3.2 percent to US$438.49 tonnes.

In the past eight months, rice exports on average decreased by 15.7 percent in volume and by 18.4 percent in value compared to the same period last year.

China remained Vietnam’s largest rice importer of 1.47 million tonnes worth US$609.13 million in the first seven months, accounting for 32.8 percent of its total rice export earnings.

Rice exports to Singapore, Angola, Gana and Hong Kong also rose steadily by 62.8 percent, 23.1 percent, 28.4 percent and 17.3 percent, respectively.

It’s likely that the country’s rice exports will slow down in the coming months.

USAID promotes trade acceleration in Vietnam

The US Agency for International Development (USAID) has supported 19 ministries and agencies in implementing trade-related legislation, building trade liberalisation and governance capacity, and boosting economic integration in Vietnam.

The outcomes of the USAID-funded “Support for Trade Acceleration” project (USAID STAR PLUS) over the past three years were unveiled at a ceremony jointly held by the US agency and the Vietnamese Ministry of Justice in Hanoi on August 26.

Launched in 2010, the project has focused on areas related to preparation for and implementation of trade agreements, customs modernisation, facilitation of agricultural trade, and legal transparency.

Deputy Minister of Justice Le Hong Son affirmed that the project has played a positive role in developing the rule of law, improving transparency in the business environment consistent with the World Trade Organization (WTO) regulations and international practices.

It also creates a healthy competitive environment to enable investors in all economic sectors to compete successfully and take advantage of new opportunities arising from trade liberalisation, he added.

“Our work through USAID STAR Plus and previous economic growth programmes dating back to 2001 is testimony to the growing partnership between the United States and Vietnam to build a rule-based trading system in line with the WTO and BTA,” said US Embassy Charge d’Affaires Claire Pierangelo at the project closing ceremony.

These efforts contributed to developing the rule of law, governance, and economic relations between the two countries, Claire Pierangelo noted.

Trade acceleration has been a key feature in the relationship between the United States and Vietnam, with bilateral trade growing from US$1.5 billion in 2001 to close to US$25 billion in 2012.

This trade expansion is partly thanks to extensive trade liberalisation under the BTA and the WTO, which benefited from technical assistance of USAID STAR Plus and its predecessors, USAID STAR I and II.

Customs intensify inspection on milk import-export

Vietnam Customs has taken tougher measures to control the import and export of dairy products.

The move aims to ensure food hygiene and safety, and prevent the import of unqualified milk, which may cause harm to consumers’ health.

Strict regulation will be imposed on imported dairy products, especially those shipped from New Zealand, which is believed to have contained Clostridium botulinum.

Meanwhile, the Ministry of Industry and Trade (MoIT)’s Import-Export Department and the Health Ministry’s Food Hygiene and Safety Department have received warnings from many countries that some batches of imported milk do not meet food quality standards.

Foreign companies eye Vietnamese retail market

The Vietnamese retail market is attracting a number of foreign investors, including those from Thailand and Japan.

In its August 26 issue, Thailand’s “Nation” newspaper said Thai and Japanese firms have realised the potential in the Vietnamese market.

Retail business group Berli Jucket decided to acquire 65 percent of shares at Thai An Company which manages 41 “B’s mart” convenience stores in HCM City. It opened three more stores in August, bringing the total number of stores to 61 late this year.

Berli Jucket’s Vice President Phidsanu Pongwatana, said that compared to Thailand, which has fierce competition in price, Vietnam is seen as a potential market for the retail industry.

In its development plan, the group will open an additional 100 stores next year and 300 more in Hanoi and other big cities by 2015, Pongwatana noted.

Japanese retailer Aeon has also recently opened its national headquarters in Ho Chi Minh City and plans to run many retail stores, including convenience shops, shopping centres and supermarkets in Vietnam.

Last December, the company launched its first Mini Stop convenience store in Ho Chi Minh and is intent on running its first shopping centre in Hanoi next year.

Thailand's leading shopping mall developer, Central Pattana (CPN), is negotiating with a Vietnamese partner to develop its first shopping complex in Vietnam.

Vietnam’s250 convenience stores are being currently managed by different investors, such as Shop & Go (77 stores), Circle (50 stores), B's mart (44 stores), and Mini Stop (17 stores).

With as many as 800 modern trade stores in Vietnam, the country boasts great potential for modern traders to explore.

The convenience store business industry in the Asia-Pacific region grows by 12-15% while Vietnam’s annual consumer goods growth is estimated at around 23%.

Smooth transition for SBV gold

Deputy PM Vu Van Ninh has directed the General Customs Department to waive customs procedures for all gold imported by the State Bank of Viet Nam (SBV) until it reaches bank storage, Hai Quan (Customs) newspaper reported.

Ninh told the Ministries of Finance, and Public Security and the SBV to implement the direction. It means that the gold can enter the country not only without customs procedures but also without tests on the quality of the gold itself.

According to the SBV, upon collecting each shipment of imported gold, the central bank would issue written documents to commission units to collect the precious metal and be responsible for the nature of each shipment.

The exemption will only apply until the gold is sealed and transported to SBV storage, where regular customs procedures will be carried out. It follows a proposal to the Prime Minister by the bank in May for the free flow of gold through Customs, which can cause difficulties. The SBV also suggested that the gold be officially placed on a list of preferential goods, similar to the way goods for security and defence are brought into the country.

At present, the SBV material used for money printed overseas is exempt from customs procedures.

On Monday, the gap between the local and international gold price narrowed. The Saigon Jewellery Company (SJC) sold its gold for VND38.12 million (US$1,815) while on the kitco.com trading floor, the gold selling price climbed to $1,395 per ounce, or $1,681 a tael, leaving gold prices in Viet Nam $134 per tael higher than global rates.

VietinBank Deputy CEO appointed as SBV Chief

The State Bank of Viet Nam (SBV) yesterday signed Decision No 1836/QD-NHNN to appoint Le Duc Tho, deputy general director of the Viet Nam Joint Stock Commercial Bank for Industry and Trade (VietinBank) as chief administrator of the central bank's office.

Tho, born in 1970, has 21 years of experience in the banking sector, mostly spent at VietinBank. He had been a deputy CEO at the HOSE-listed lender for over three years.-

Veg oil imports under scrutiny

The Ministry of Industry and Trade is cracking down on imported vegetable oil, issuing a new decision last week to impose a new anti-dumping tax from September 7.

The new tax will apply to refined soybean and palm oil, coded HS 1507.90.90, 1511.90.91, 1511.90.92 and 1511.90.99.

The decision followed a proposal from the Viet Nam Vegetable Oil Company urging the ministry to apply temporary measures on imported vegetable oil.

An investigation that began on December 27 last year showed that domestic consumption of refined vegetable oil saw consistent increases during the 2009-12 period, jumping 28 per cent.

However, sales of locally manufactured oils declined during the same period with market share collapsing from 52 to 27 per cent. Domestic production dropped in 2012 to 64 per cent, while domestic capacity fell from 89 to 31 per cent.

Domestic producers reported falling revenues and profits, each decreasing 66 per cent and 197 per cent, respectively, while findings from the investigation showed importation of soybean and palm oil soared during the same three-year period.

The investigation concluded imports were causing damage to domestic producers affected by reductions in market share, output, profits and labour.

The roadmap for the reform indicates a 5 per cent anti-dumping tax to be applied until May 6, 2014, to be gradually decreased by 1 per cent every 12 months until May 6, 2017.

Muong Thanh Da Nang hotel to open next week

The Muong Thanh Hotel Group will officially open its VND400 billion (US$19 million) Muong Thanh Da Nang hotel in Son Tra peninsula on September 2, the group has announced.

The four-star, 26-storey hotel with 370 guestrooms and eight apartments has been the 18th hotel of Muong Thanh hospitality hotel chain in Viet Nam.

The hotel, which is located east of the Han River and sandwiched between the Han River Bridge and Dragon Bridge, is only a 10 minute drive from Da Nang International Airport.

On this occasion, the group also introduces its Muong Thanh Charity Fund.

PVI provides insurance for Lai Chau power plant

The Petro Viet Nam Insurance Joint Stock Corporation (PVI) has recently signed an agreement to provide insurance service for Lai Chau hydro power plant project owned by Viet Nam Electricity (EVN).

With a total value of VND14.7 trillion (US$700 million), this has been one of the biggest insurance contracts for EVN so far.

The power plant, located in Muong Te District's Nam Hang Commune in the northern province of Lai Chau, is expected to be completed in 2017. It will be a national large-scale hydro power plant, along with the Son La and Hoa Binh projects.

In the first six months of this year, PVI signed insurance contracts in big projects such as construction insurance for Unit 2 of the O Mon thermal power plant worth $346 million, asset insurance for the Phu My 3 thermal power plant worth $1 billion and construction insurance for the iron and steel plant and Son Duong deep water port worth $5 billion.

During this period, the corporation also paid compensation of VND536 billion ($25.5 million) for more than 52,200 cases.

Healthy firms given access to cheap loans

Several enterprises with healthy and transparent finances and effective business plans have been given loans at a rate of only 6.5-7 per cent per year, according to the State Bank of Viet Nam.

In its latest report on the banking sector, the central bank said that dong lending rates last week were steady and credit institutions strictly complied with regulations on the maximum dong short-term lending rates for priority sectors.

The report said that State-owned commercial banks also offered dong lending rates at 7-9 per cent per year for short-term loans for priority sectors, including agricultural and rural development, exporters, support industries, small and medium-sized enterprises (SMEs) and high-tech enterprises; 9-10.5 per cent for short-term loans for other production and business; and 11.5- 12.8 per cent for medium and long term loans.

For the group of joint-stock commercial banks, the annual dong lending rates were 8-9 per cent for short-term loans for priority sectors; 9.5-11.5 per cent for short-term loans for other production and business; and 12-13 per cent for medium and long term loans.

The US dollar lending rates were commonly 4-7 per cent per year, of which the lending rates set by State-owned commercial banks were 4-5 per cent yearly for short term, and 6-7 per cent for medium and long term. Joint stock commercial banks offered rates at 5- 6 per cent yearly for short term and 6.5-7 per cent for medium and long term.

The central bank also reported that dong mobilising rates last week were stable compared to the previous week. The rates offered by State-owned commercial banks were commonly 1 to 1.2 per cent per year for demand deposits; 5-6.5 per cent per year for terms below six months; 6.5- 7 per cent for six months to below 12 month terms; and 7.5-8 per cent for 12 month and 12 month-plus terms.

The dong mobilising rates quoted by joint stock commercial banks were commonly 1.2 per cent per year for demand deposits, 6.5 - 7 per cent for one to below six month terms, 7-8 per cent for six to below 12 month terms; and 8-9 per cent for 12 and 12 month plus terms.

The US dollar mobilising rates were also stable at 1.25 per cent per year for individuals and 0.25 per cent for economic institutions.

Enterprises making key industrial products in Ha Noi expect to achieve their development targets by 2015. The targets were set under the Ha Noi development plan for 2011-15.

Pham Duc Tien, deputy director of the Ha Noi Industry and Trade Department, said despite the economic downturn, Ha Noi industry was forecast to grow at an annual rate of 12-13 per cent.

This would also enable it to become a high-tech centre of Viet Nam and develop products with high quality, value and competitiveness.

To stay on target, Tien said Ha Noi authorities would create favourable conditions for local enterprises to join trade promotion programmes, seek for new markets, participate in fairs and exhibitions, and co-operate with foreign enterprises and local enterprises in other provinces and cities.

Tien said the city would build a positive environment for the enterprises with scientists, scientific organisations and research institutes to promote development.

He advised the enterprises to continue to apply and observe standards and modern technologies, restructure if necessary and reduce energy consumption.

Ha Noi has 57 key industrial products made by 48 enterprises. They account for 10 per cent of the total municipal export value and include beverages, mechanical engineering, electronics, chemicals and plastics, footwear, textiles, paper and packaging as well as processed food.

Many products are replacing imports, which helps slash the trade surplus. These Vietnamese products include transformers, large capacity engines - and production lines for food and beverage processing.

In the first seven months of this year, some enterprises producing key industrial products had good results compared to the same period of last year. The department said that this was because they had good production and business strategies - and produced high quality products at competitive prices.

HCM City business link-ups flourish

HCM City's co-operation programmes with southern provinces and Can Tho City have improved business and production links between them in recent years.

Between 2000 and June 2011, the city had invested VND198.7 trillion (US$9.5 billion) in 782 projects in the Cuu Long (Mekong) Delta's 12 provinces and Can Tho City under the programmes, according to the HCM City Development Research Institute.

The projects were in agriculture, industry, trade, tourism, science and technology, healthcare, education, information, culture, transport, and environment protection. The co-operation has helped foster socio-economic development, according to the localities.

The project have improved the lives of locals and reduced the number of job seekers moving to HCM City.

The city too has benefited by securing supply of products from these projects, especially livestock and agriculture produce.

HCM City can only meet 20 per cent of its demand for livestock and poultry meat and other foods, according to the municipal Department of Agriculture and Rural Development. A trade co-operation programme with the southern localities has helped improve trade one year after it began.

The city has identified the strengths of each province and built production-to-distribution chains for many goods, especially agriculture and food, that it consumes.

Livestock and poultry meat is provided by Dong Nai, Ba Ria – Vung Tau, Long An, Tien Giang, and Tay Ninh provinces.

Eggs are supplied by Dong Nai, Long An, Tien Giang, Kieng Giang, An Giang, and Dong Thap.

Vegetables and fruits mainly come from Lam Dong, Long An, and Tien Giang.

VN ‘should export more to Indonesia'

Vietnamese companies should consider Indonesia a high-potential export destination and find niche markets to exploit in this country, an industry insider say.

A Thoi Bao Kinh Te Viet Nam (Viet Nam Economic Times) report yesterday quoted Vu Kim Hanh, chairwoman of the Vietnamese High-Quality Goods Producers' Association, as saying so.

She added that a few major Vietnamese companies like Vinamit, Nhon Hoa Scales and Trung Nguyen Coffee have already found success in Indonesia.

This was a good sign for Vietnamese companies, she said.

However, she also said that local firms should act with a sense of urgency or risk losing the opportunity to competitors from other countries.

Concurring with Hanh, Nguyen Tuan Quynh, deputy chairman of the HCM City Association of Young Entrepreneurs, noted that Indonesia was the fourth most populated country in the world and set to become one of the 10 biggest global economies by 2015.

Vietnamese companies should therefore study the market carefully and expand operations into the fellow ASEAN member nation, he said.

Agriculture was one of many potential sectors that Vietnamese companies must explore in Indonesia, participants at conference said last week.

A representative of the Industrial and Agricultural Machinery Company, Bui Van Ngo, said that they had successfully sold agriculture machinery to Indonesia.

He said Vietnamese companies should offer agriculture consult-ancy services in the country.

Indonesia also has potential to consume food products from Viet Nam as the two peoples have similar tastes.

Currently, the Pho 24 restaurant chain has established around 15 outlets in Indonesia.

Hanh said Vietnamese companies must study the model of food chains to establish these in foreign countries including Indonesia. This would, in turn, help producers of spices and other ingredients, she said.

A report presented by the General Department of Customs at the conference said trade turnover between the two countries has developed significantly in recent years.

In 2008, the bilateral trade turnover was US$2.5 billion. In 2012, it had increased to $4.6 billion and is expected to reach $5 billion before 2015 and $10 billion by 2018.

Exports from Viet Nam to Indonesia in 2012 topped $2.3 billion, about 50 per cent of the bilateral trade turnover that year.

In the first seven months of this year, the department said, export turnover to Indonesia had reached nearly $1.3 billion.

Products with high export value to Indonesia are vegetables and fruits, coffee, rice, petrol, mechanical products, garments, steel, telephone, electronic items and spare parts.

Unclaimed cars face confiscation in ports

The General Department of Customs has said that it will treat unclaimed cars at ports in several localities as abandoned property.

It has asked customs departments in Hai Phong, Da Nang, HCM City, Ba Ria – Vung Tau and Quang Ninh to coordinate closely with warehousing companies in initiating procedures for dealing with cars held at the port for more than 90 days.

Within five working days of receiving the report from the departments about cars in stock, a notice will be inserted in the media.

The customs departmenst will also issue notices to signatories of the bill of lading, asking them to complete procedures for the cars within 30 days. After that, the property will be considered abandoned and dealt with according to relevant regulations.

Customs officers have been asked to carefully verify each case and report to the General Department any evidence of smuggling.

As of May 30 this year, there were a total of 178 used cars (mostly manufactured in 2011, 2012 and 2013) imported by overseas Vietnamese that are held at ports.

Investigations have shown that legal ownership for these cars has not been established.

In many cases, the owners are illegal immigrants or do not have permanent residency in Viet Nam. In several other cases, the applications for importing cars do not meet set requirements.

Tanner Viet Nam wins green gong

Technical documentation company Tanner Viet Nam was awarded "For the Green National Environment" by the Viet Nam Association of Nature and Environment Conservation.

The award honors businesses that help conserve the environment and adopt eco-friendly technologies.

Established in 2004, Tanner is a leading company in professional technical documentation, generating technical information from product catalogues to implement information management systems.

This year the company has managed to reduce power and water consumption by 12 per cent.-

Coral Bay Townhouse in Ha Long goes on sale from today

Syrena Viet Nam Investment and Development JSC, a member of BIM Group, begins the sale of two blocks in its Coral Bay Townhouse project in northern Quang Ninh Province today.

Home buyers will get a discount of 6.5 per cent on the apartment's value if they register for a purchase on the release day. The apartments are expected to be handed over to buyers in the first quarter next year.

Coral Bay Townhouse is among the key components of the US$2 billion Ha Long Marina Urban Area project which covers an area of 287ha and stretches along 3.8km of beach in Ha Long City.

The company also launched 80 apartments, with areas ranging from 61sq.m to 70sq.m, in the Green Bay apartment building.

The apartments are on sale through preferential loans in line with the Government's VND30 trillion ($1.42 billion) support package for the property market.-

Bao Viet Bank guarantees high rise apartment purchases

Bao Viet Bank announced on Wednesday that it would lend customers who buy apartments at the Ha Dinh Tower 70 per cent of each apartment's value for 15 years.

The programme came from co-operation between the bank and the Investment 135 Joint Stock Co, the project's investor.

The bank undertook to refund all money paid by home buyers for the apartments, as well as compensate them, if project progress was not assured.

The commitment to construction progress and for the completion of the projects was made to assure financial transparency and guarantee customer interests, it said.

Ha Dinh Tower is a 21-floor tenement, covering an area of over 3,000sq.m in Ha Noi's Thanh Xuan District. Apartment delivery was expected to begin in the fourth quarter of this year.

Export of hi-tech products surges

Vietnam’s export of phones and components in the first seven months of 2013 increased 85.7 % year-on-year to US$11.55 billion.

Last year, the export of mobile phones and components also brought home US$12.7 billion. Main importers were the EU, United Arab Emirates and India with turnover of US$4.68 billion, US$1.93 billion and US$572 million, respectively.

According to Ministry of Industry and Trade statistics, growth was also seen in the export of other technological commodities to all foreign markets so far this year.

Vietnam only began to export electronic goods about 10 years ago, but now the country’s products have been shipped to nearly 50 markets worldwide.

In the 1997-2012 period, the export of computers, electronic products and parts experienced an annual rise of 21.2 % on average, from US$440 million in 1997 to over US$7.8 billion in 2012.

China was the main importer of Vietnamese-made computers, electronic products and parts with US$1.33 billion, followed by the EU (US$1.23 billion), the US (US$749 million) and Malaysia (US$631 million).

The sector is striving for US$40 billion in electronics and mobile phone exports by 2017.

Over the years, Vietnam has attracted a lot of big foreign-invested projects worth tens of billions of dollars in the field with the participation of global names like Samsung, Intel Corp., and Taiwan (China)’s Foxconn and Compal Electronics.

Just last month, Samsung Electronics Vietnam unveiled a US$2 billion project to build a plant manufacturing and assembling electronic goods in Thai Nguyen province. The company also increased investment in its project in Bac Ninh province to US$1 billion.

However, the country’s electronics sector is facing big challenges as foreign-invested enterprises account for up to 90 % of the sector’s total export turnover. At the same time, they control 80 % of the domestic market share.

Experts have urged domestic companies to increase their production capacity and shift from processing and assembling to manufacturing.

HCMC airport still set to take flight

The Ministry of Transport (MoT) believes that Long Thanh airport is the optimal facility to replace Tan Son Nhat airport in Ho Chi Minh City when the latter reaches full capacity by 2020.

MoT Deputy Minister Pham Quy Tieu dismissed a suggestion by two aviation experts to scrap Long Thanh and instead expand Tan Son Nhat, saying the expansion is infeasible.

Le Trong Sanh, ex-head of international flight management at Tan Son Nhat airport and Mai Trong Tuan, a former Vietnam Airlines pilot, said an expanded Tan Son Nhat airport can handle the increasing number of domestic and international passengers.

“It is impossible because Tan Son Nhat is located in a densely populated area surrounded by main streets of Ho Chi Minh City,” Tieu said in a report sent to the Cabinet.

“The expansion plan will affect the environment in downtown areas by causing noise and emission levels to exceed acceptable levels.”

According to Japan Airport Consultants Inc. (JAC), Tan Son Nhat airport will reach its peak capacity of 20-25 million passengers between 2018-2020 and will be overloaded after that.

The cost of expanding the airport is estimated at US$9.15 billion besides US$16.1 billion for site clearance and relocating some 140,000 people living in the districts of Phu Nhuan, Tan Binh and Go Vap.

The plan to build Long Thanh airport was mooted in 2005, and construction is expected to be completed within the next decade.

The 5,000ha airport, 43km from Tan Son Nhat airport is designed to handle 100 million passengers and five million tonnes of cargo a year, and can accomodate Airbus A380 and other similar sized aircraft.

JAC, the consultant to the project, has estimated Long Thanh Airport to cost US$7.8 billion, including US$730 million for acquiring land and relocating thousands of households in the area.

Vung Ang EZ attracts US$16 bil in investment

The Vung Ang Economic Zone in the central coastal province of Ha Tinh has attracted 79 projects capitalized at over US$16 billion to date.

Of the total number of projects, 35 are foreign invested. In the first seven months of this year, investment licences were granted to 14 projects in the zone, valued at more than US$500 million.

Among the biggest projects is one to build a US$10 billion steel factory and sea port invested by Formosa Heavy Industries Corporation from Taiwan, China.

Vung Ang EZ, one of the country's five key coastal economic zones, was founded in 2006, covering an area of 22.78ha in Ky Anh District.

Firms based in the zone have so far created over 15,000 jobs.

US$180m ship building plan approved

Deputy PM Hoang Trung Hai has agreed in principle to include a ship-building facility in Khanh Hoa Province in the country’s masterplan for the industry.

The license for the US$180 million project in Cam Ranh City’s Cam Thinh Dong Commune was granted to Oshima Shipbuilding Vietnam Ltd (Japan) in 2012.

The 50-year project will develop a shipbuilding facility that can build 38,000 and 56,000 tonne vessels.

Oshima is scheduled to start construction of the 304ha facility in February 2015 after three years of site clearance for construction work.

When construction is completed in 2017, the facility will be able to build twenty four vessels per year by 2026. The new plant, set to start operations in 2017, will be able to build twenty four vessels per year by 2026.

Deputy PM Hai has asked the Transport Ministry to complete and submit the masterplan for the shipbuilding industry to the Government soon.

Vietnam free-range chicken named best food in SEA

Yen The free-range chicken – a speciality of Vietnam’s northern province of BacGiang– will be awarded with the ASEAN BESTFOOD title in Singapore on September 9-11.

The product will be honoured by the organising board of the “ASEAN businesses for a green, clean and beautiful environment” – a public communication programme in Southeast Asia.

The awards ceremony will be held at the Singapore Convention and Exhibition Centre.

To win the awards, products have to beat a competition in each participating country. Yen The chicken is one of the four key Vietnamese products to enter the competition.

From a local product, Yen The chicken becomes a renowned trademark not only at home but also abroad and is honoured at the regional consumer forum.

Exports to the US exceed US$13 billion

The US remains Vietnam’s largest goods consumer, importing over US$13 billion worth of goods between January-July 2013, a year-on-year rise of 17.16%.

According to the Ministry of Industry and Trade, garments, footwear and wood are major Vietnamese export items that earned revenue of over US$1 billion each.

Garments topped the export list, fetching US$4.8 billion, up 15.5%, followed by footwear with US$1.4 billion or up 20.12%, and timber products with US$1.05 billion or up 7.24%.

Products with an export value worth more than US$100 million are computers and electronics (US$748 million), seafood (US$712 million), machinery, equipment and tools (US$535 million), bags, walets, suitcases and umbrellas (US$464 million), vehicles and accessories (US$358 million), crude oil (US$357 million), cashew nuts (US$297 million) and steel products (US$268 million).

Pepper exports to the US also increased by 99.5% in volume and 7.6% in value.

Despite the modest export earnings of US$357.6 million, crude oil exports to the US achieved the highest growth of 111.11% compared to the same period last year.

Timber exports rebound

Timber exports to the US, Britain, France, Japan, the Republic of Korea and China are rising rapidly, yet businesses fear that they are not able to cash in on bulk orders.

High input costs recently forced timber processors in China to shift their production bases to other countries and Vietnam is one of their favourite destinations.

Do Thi Bich Sam, director general of Bao Hung Co Ltd in Binh Duong province, says the number of Japanese orders in her company has increased by 60% since the beginning of the year.

Vietnamese wood products are favourites with foreign importers (Photo:internet)

According to Sam, Japanese importers want to find timber processors outside China to sample new products and avoid risk as a result of China’s recent policies.

Last year, Bao Hung raked in US$5 million from timber exports and the figure is expected to rise to US$8 million this year.

Vietnamese woodwork is gaining a strong foothold in the global market thanks to their improved designs and quality.

Ngo Thi Hong Thu, deputy general director of Truong Thanh Wood Processing Joint Stock Company in Binh Duong province, says the shifting of orders from China to Vietnam proves more foreign importers have begun to eye high quality Vietnamese products at reasonable prices.

Other timber processors such as Tavico and Dang Long are planning to expand production to meet foreign orders which have increased by 30% to 50%, mostly from the US market.

Despite the positive signals, domestic processors fear that they cannot deliver shipments on time due to bulk orders and limited financial capacity.

“Although Vietnam’s major timber markets such as the US, UK, France, Japan, and the Republic of Korea have recovered strongly, we do not dare to sign short-term contracts, even six-month contracts, with importers because of our limited financial, human and material resources,” says Thu.

Nguyen Quoc Khanh, president of the Handicraft & Wood Industry Association of Ho Chi Minh City (HAWA), predicts that there will be a massive shifting of large orders from other countries to Vietnam next year and local businesses need to take advantage of this golden opportunity by improving production capacity and preparing qualified human resources.

HAWA is supporting its members in changing production models to cater to the taste of importers who prefer indoor to outdoor products.

Statistics show that timber exports raked in US$2.91 billion in value in the first seven months of this year, a year-on-year increase of 12.65%. Yet most of the value fell into the hands of foreign direct investment (FDI) businesses.

FDI businesses, mostly Chinese and Taiwanese, normally maintain regular customers and receive large orders thanks to their financial capacity and large workshops.

Experts say Vietnamese timber processors have fallen victim to the global economic and financial crisis which started in 2008 and it has taken big businesses several years to get their operations up and running.

The Truong Thanh timber processor, which used to be one of the leading timber exporters in Vietnam, has worked hard to maintain a consistent level of operations for the past two years.

Financial capacity is the biggest hurdle to local businesses whose bank capital accounts for 70-80% of their total. A high ratio of bad debts has forced banks to impose quota on businesses, making it difficult for them to access capital.

Facts and figures:

* Vietnam is the sixth largest timber exporter globally

* 2012’s export value: US$4.67 billion, up 15.3%.

* 2013’s estimated value: US$5.5 billion, up 10%

Russia-Vietnam trade to hit US$20 bil by 2020

Deputy Russian Economic Development Minister Aleksei Likhachev has said  he has every confidence Russia and Vietnam will lift two-way trade turnover to US$20 billion by 2020.

Likhachev was speaking in an interview granted to Russia’s ITAR-TASS News Agency on August 23 during his ongoing visit to Vietnam.

He credits his confidence to the two countries’ reliably fruitful economic and commerce cooperation, recording average annual growth of 30%.

Bilateral trade revenue surpassed US$3.6 billion in 2012 alone, and is expected to climb further to US$4 billion by the end of this year.

Deputy Minister Likhachev acknowledged the relationship still boasts unrealised potential, and noted Russian and Vietnamese leaderships are targeting US$7 billion in trade revenue by 2015.

If current rising trends continue, 2020’s US$20 billion goal is totally within reach, he affirmed.

Vietnam attracts US$12.63 billion FDI in eight months

Vietnam’s foreign investment capital over the past eight months totalled US$12.63 billion, an increase of 19.5% on 2012.

The Foreign Investment Agency (FIA) reports that as of August 20, almost 770 new projects were licensed representing registered capital of over US$7.4 billion, a year-on-year increase of 12.2%.

As many as 296 projects contributed an additional US$5.22 billion in capital, 31.7% higher than the previous period.

FIA says foreign investment was funneled into 18 industries, of which processing and manufacturing took the lead with 370 newly registered projects worth US$10.817 billion, accounting for 85% of total foreign investment capital.

The real estate sector ranked second with its more than US$588 million representing 4.7%  of total foreign investment capital.

Japan is the largest of Vietnam’s 47 foreign investors with US$4.35 billion (34.5% of the total), followed by Singapore (US$3.78 billion, 29.9%) and Russia (US$1 billion, 8,1%).

Foreign businesses have invested in 50 cities and provinces across the country, not including offshore oil projects.

With an additional US$2.8 billion in investment for the Nghi Son oil refinery, the central province of Thanh Hoa received the largest proportion of Vietnam’s total foreign investment capital (23.3% or US$2.815 billion).

Thai Nguyen province claimed the second largest (US$2.185 billion), while third went to Bac Ninh province (US$1.39 billion).

Foreign Direct Investment (FDI) projects have disbursed US$7.560 billion over the past eight months, up 3.8%  on 2012.

The FDI sector’s export earnings surged 21.7% on last year’s levels to beyond US$7.560 billion, 66.1% of Vietnam’s total export revenue.

It imported US$48.297 billion worth of goods, again representing 66.1% of the national total, and up 25.1% on 2012.

Vietnam CEO Summit 2013 discusses renovation

“Creative Economy: Innovation to the success of businesses” was the main theme of the annual Vietnam CEO Summit, which attracted local and foreign executives, politicians and scholars.

The event was jointly organised by Vietnamnet online newspaper and Vietnam Report JSC in Ho Chi Minh City on August 23.

Participants shared their experience and opinions on the creative economy and the building of a creative Vietnamese business, renovation management and competition with multinational companies as well as growing through renovation.

Economists agreed that creation and renovation are now an irreversible trend in global business activities.

The profitability of capital, machines or muscle is finite, while the value of the brain and creativeness is infinite. It produces breakthroughs and decides businesses’ competitiveness, they said.

They added that it is time for Vietnam’s businesses and economy to reach more forcefully and comprehensively top innovative ideas, and share the best practice of innovation solutions in Vietnam that will push the momentum of Vietnam’s economy.

They also pointed out three factors that influence the creation of a business the most, including human resources, operation procedures and philosophy.

Leaders also play a vital role as pioneers in the renovation of a business, they said.

First half of August sees US$456 million trade deficit

Vietnam Customs reports the national trade turnover over the first 15 days of August totalled US$11.4 billion, including US$456 million in import surplus.

The cumulative 2013 trade value stands at US$158.38 billion so far, up 15.7% from a year earlier. Export revenue contributed US$78.75 billion, up 15.4%, while imports rose 16% to US$79.64 billion.

Export commodities including plastics, cameras, and spare parts enjoyed slight increases in the reviewed period, but computers, electronics, phone handsets, vehicles, machinery, and rice all suffered sharp declines.

The foreign-invested sector’s export earnings fell 14.4% to US$3.28 billion in the first half of August. Since January 2013, the sector’s export revenue totalled US$47.56 billion, rising 26.9% from 2012 levels and accounting for 60.4% of Vietnam’s total export value.

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