VN steelmaker Tisco to sell shares to SCIC

Thai Nguyen Iron and Steel Corporation (Tisco) has registered with the State Securities Commission to sell its individual shares.

Tisco products are used in many important national projects. The corporation is expected to receive $47.6 million from the State Capital Investment Corporation to improve production. - Photo tisco.com.vn

The registration was done after the Prime Minister allowed the State Capital Investment Corporation (SCIC) to contribute VND1 trillion (US$47.6 million) to Tisco to improve production.

The capital will be invested in the second phase of Tisco's production expansion project. The VND4 trillion ($190.47 million) phase is one of the top seven projects listed in the Viet Nam Steel Industry Development Plan for the 2010-15 period.   

With this latest move, Tisco can receive capital from SCIC, thus increasing its registered capital to VND2.84 trillion ($135.23 million).

Tisco is the first unique metallurgic zone in Viet Nam with an integrated production line that covers a range of processes from exploiting iron ore to making cast iron, steel billets and rolling steel.

Its products are used in important national projects such as Hoa Binh, Yaly and Son La hydroelectric power plants, the North-South 500-KV power line and My Dinh National stadium, as well as the Thang Long and Chuong Duong bridges. It has also successfully penetrated international markets, including those in Canada, Indonesia, Laos and Cambodia.

Fisheries sector aims for US$8.5 billion export turnover in 2015

The aquaculture sector sets a target of earning US$8.5 billion from exports in 2015, up 10.7% year-on-year.

Speaking at the Directorate of Fisheries’ year-end conference in Hanoi on December 26, Deputy Minister of Agriculture and Rural Development Vu Van Tam said that the sector will strive for a total output of 6.65 million tonnes, including 3.95 million tonnes from farming.

To achieve the goals, the directorate will focus on controlling diseases, and improving the farming environment, Tam said.

It will also implement tasks mentioned in the sector’s development strategy and plan by 2020, he added.

In 2014, despite difficulties and challenges relating to weather, diseases, market barriers and the tension with China, the sector recorded a total output of 6.3 million tonnes, up 4.4% against the previous year.

Its exports fetched US$7.92 billion, rising by 18% and surpassing the set target by 11.6%.

Customs sector looks to higher budget collection

Deputy PM Vu Van Ninh tasked the customs sector to raise budget collection by 10% (around VND 15,000 billion) in 2015.

The Deputy PM made the request on Thursday in Ha Noi at a video-teleconference reviewing 2014 tasks and launching 2015 works of the General Department of Viet Nam Customs.

As of November 30, the sector collected VND 228,645 billion for the budget, surpassing the set goal of VND 224,000 billion and representing a year-on-year increase of 14.8%. Budget collection from customs activities was estimated at around VND 248,500 billion in 2014, up 12.2% against 2013.

Addressing the event, Deputy Ninh hailed the achievements of the customs sector amidst national decreasing budgetcollection due to the falling oil prices in the global market.

He proposed the sector strengthen budget collection to offset the deficit from the declining oil prices.

The leader asked the customs sector to work with related agencies to reform administrative procedures; reduce inconvenience for enterprises in accordance with the Government’s Resolution 19 and the PM’s Directive 24 on strengthening management and promoting administrative procedure reform in the field of tax and customs; cut time of customs clearance; properly apply the national-single window system; and combat counterfeit products.

Can Tho yet to become economic hub of delta

Can Tho City has yet to become an economic hub of the Mekong Delta region as defined in the Politburo’s Resolution 45 though the city has been supported to develop transport infrastructure and restructure its economy.

In accordance with the resolution, Can Tho City will be developed into a center of culture, industry, trade, services, tourism, technology, education, health, transport and security in the Mekong Delta.

Deputy Prime Minister Vu Van Ninh told a meeting on Tuesday that the government of Can Tho has to make greater effort to speed up its development.

Tran Thanh Man, Party chief of Can Tho City, said after ten years of implementing the resolution, the city is one of 13 provinces and cities in the country that are able to contribute to the State budget. Its contribution of VND800 billion (US$37.4 million) to the central State budget accounts for 22% of the delta’s total.

Can Tho’s chairman Le Hung Dung pointed out investment environment, infrastructure, links with other parts of the region and manpower quality are problems that are hindering the city’s development.

As for transport infrastructure, Deputy Minister of Transport Nguyen Van The said Can Tho is more accessible to other provinces in the delta and HCMC, and other parts of the country thanks to highways, bridges, airport and seaports, among others. In the coming time, the ministry will continue finishing other major transport projects.

However, many experts have shown disagreement with that. They said such projects in the city have been in inefficient operation, thus lowering its vital role in the development of the delta.

Responding to the city’s suggestion for establishment of a biotechnology institute, a representative of the Ministry of Science and Technology said the ministry would merge two biotechnology agencies in Can Tho University and the Cuu Long Delta Rice Research Institute into a center for applied science and technology in Can Tho.

Deputy Prime Minister Ninh suggested that the city’s authorities should focus on the development of industry sector and application of high quality science and technology in the next ten years in order to speed up the development of the whole region.

More farmers attend to global coffee standards

Around 19,000 Vietnamese coffee growers have joined NESCAFÉ Plan to turn out products that meet the criteria of the Common Conduct for the Coffee Community (4C), a global association which promotes sustainable coffee production, processing and trading.

Vietnamese coffee can be sold at higher prices than normal products on global markets if it is made in line with the 4C code consisting of 28 social, environmental and economic principles for all players in the green coffee supply chain.

This year, the number of farmers following the 4C standards has jumped 51% against last year, according to the 4C Association. The area of coffee grown in line with the 4C standards has increased from 10,000 hectares last year to 20,000 hectares this year but is still modest compared to 500,000 hectares of coffee in the country.

Many farmers in the Central Highlands provinces of Daklak, Dak Nong and Lam Dong have participated in training courses on the 4C standards as part of NESCAFÉ Plan. In addition, around 31,000 coffee growers have got technical support this year.

If coffee growers closely follow the 4C criteria, they can lower production cost, raise productivity and protect the environment as well as get informed of updated prices on the world market. The code also covers ten unacceptable practices, including the use of prohibited plant protection chemicals and child labor.

Many individuals, corporations and non-governmental organizations worldwide have joined the Germany-headquartered 4C association to promote sustainable development for the coffee sector.

Thailand seeks to woo Vietnamese tourists

Thailand’s tourism sector is introducing multiple promotions and new destinations to Vietnam in an attempt to counter a strong decline in Vietnamese visitors this year.

According to the Tourism Authority of Thailand (TAT) in HCMC, nearly 518,000 Vietnamese tourists had visited Thailand in January-November, down over 23% against the same period last year.

Therefore, the Thai tourism sector is refreshing itself by offering new tour packages and supporting travel firms to bring Vietnamese travelers back.

TAT will aid local travel companies in advertising tours to Thailand and organizing promotional tours, and giving tickets for Muay Thai performances to Vietnamese tourists.

Recently, TAT invited representatives of local travel firms to Thailand to survey new attractions, including the Cartoon Network Amazone Water Park and a river tour to the ancient capital Ayutthaya and UNESCO-listed cultural heritages.

The Thai tourism sector is also drawing Vietnamese tourists to medical or cosmetic surgery tours.

In August, Thailand applied a policy to allow Vietnamese nationals and visitors from other nations to stay in this country in 60 days without having to apply for visa.

Food safety agency to simplify licensing procedures

The Department of Food Safety will next year connect its database with 13 State-run food safety testing and certification laboratories with an aim to streamline licensing procedures.

Tran Quang Trung, former director of the department under the Ministry of Health, told a seminar in HCMC on Wednesday that the network connection would enable individuals and organizations to submit their applications for food imports and exports, and get certificates via the Internet.

In the past, applicants complained much about money- and time-consuming processes for food testing and licensing as they must go to different agencies to complete relevant procedures before they can get certificates for customs clearance.

On December 17, the Ministry of Health initiated its online public service to issue certificates for food safety and hygiene for food producers and traders. The pilot scheme for the service has been implemented in HCMC since December 2.

Trung said the service would help businesses to save time and money, make licensing transparent, and minimize problems related to certificate issuance for food products.

“Earlier, individuals and businesses in the central and southern regions of Vietnam had to go to the Department of Food Safety in Hanoi to submit applications for food safety certificates, and this was time-consuming. Now, dossiers can be lodged online,” Trung said.

The applications for food testing and certification will be processed within 10 days, otherwise relevant officers have to explain to their leaders why such documents are put on hold.

Businesses can register online by logging in their accounts, submitting applications and paying evaluation and issuance fees. They will receive the certification results online and hard-copy certificates via mail.

More than 600 applications have been processed online in the past time.

FIA puts foreign investments at US$20 billion

The amount of foreign direct investment (FDI) capital pledged for projects in Vietnam have reached US$20.2 billion in the year to date, down 6.5% against the previous year but higher than the year’s target, according to the Foreign Investment Agency (FIA).

A report released by FIA under the Ministry of Planning and Investment, 1,588 new projects have been licensed with total registered capital of US$15.64 billion, up 9.6% compared to 2013, while investors of 594 operational projects have registered to add a combined US$4.58 billion, down 37.6% year-on-year.

Though the total newly-registered and supplemental FDI has dropped 6.5% against 2013, it is still higher than this year’s target of US$17 billion. In fact, the figure is a big surprise as FDI approvals were always far lower than the same period of last year in the first 10 months, according to industry observers.

Samsung’s multi-billion-dollar projects in cell phone, electronics and hi-tech sectors have made a great contribution to this year’s FDI approvals. In addition, Hong Kong’s Dewan International Co. Ltd. has registered US$1.25 billion for a project in Khanh Hoa Province.

FIA said processing and manufacturing sectors have attracted most of the foreign investment approvals for 774 projects with total newly-registered and extra capital of US$14.49 billion, or 71.6% of the total capital, followed by real estate with US$2.54 billion and construction with US$1.05 billion.

FDI disbursements had been estimated at US$12.35 billion as of December 15, rising 7.4% year-on-year and 2.9% against the estimate.

Exports by FDI firms, including crude oil, have neared US$101.6 billion, up 15.2% from last year and accounting for 68% of the total export value. Their non-oil exports have been US$94.4 billion, up 16.7% against the previous year.

Imports of the foreign-invested sector have increased 13.6% to US$84.56 billion and made up 57% of the nation’s import bill. In all, the sector has enjoyed a trade surplus of around US$17 billion.

Among the 60 nations and territories investing in Vietnam, Korea remains the biggest investor with total newly-registered and additional capital injections of US$7.3 billion, followed by Hong Kong with US$3 billion, Singapore US$2.79 billion and Japan US$2.05 billion.

Agriculture ministry aims high for exports

The Ministry of Agriculture and Rural Development has projected the agro-forestry-aquatic exports to climb to US$32 billion next year based on a trong performance this year.

The ministry has put the agro-forestry-aquatic exports this year at US$30.86 billion, an increase of 11.2% compared to last year.

Minister of Agriculture and Rural Development Cao Duc Phat told a review meeting in Hanoi on December 25 that the agriculture sector has overcome many challenges to achieve the high export performance this year.

Products with strong export growth are coffee with a year-on-year rise of 32.2%, cashew with 21.1%, pepper with 34.1%, vegetables and fruits with 34.9%, aquatic products with 18%, forestry and wood products with 12.7%, and rice with 5.3%.

Rice, coffee, rubber, cashew, pepper, cassava, vegetables, shrimp, tra fish and forestry products are in the list of export items with turnover exceeding US$1 billion each.

Unlike previous years when growth of the agriculture sector declined, the sector has bounced back to higher gear this year.

According to statistics of the ministry, the sector’s production value has inched up 3.6% and its GDP has grown by 3.3% compared to 3.27% set earlier by the Government and 3% of last year.

Phat said 2014 is a successful year for the agriculture sector.

The sector’s GDP growth has recovered but is still lower than that in the 2006-2010 period. Moreover, the competitiveness of some agricultural products is not high and consumption markets are not stable.

Besides, the value chain from production to consumption between enterprises and farmers has slowly developed and mainly in rice farming.

Nguyen Xuan Cuong, deputy head of the Party Central Committee’s Economic Commission, said the number of enterprises involved in agriculture is still small while the sector can create motivation for the country’s economic restructuring.

If there is no mechanism to support enterprises in this field, the country will not have a large-scale agriculture sector, Cuong added.

A representative of Dong Thap Province told the meeting that it is necessary to work out policies to increase the capacity and efficiency of agriculture cooperatives as they connect enterprises and farmers. Without cooperatives, it is not easy to attract thousands of farming households to build a big production chain.

Minister Phat said the ministry is drafting a decree on support policies for cooperatives. In addition, the ministry will continue plans to restructure the sector and to entice investments in agriculture.

Sugar firms fear losses, oversupply

Domestic sugar companies are worried about possible losses and a sugar redundancy of 700,000 tons in the next crop next year if the Government does not offer them support policy.

The Vietnam Sugar and Sugarcane Association (VSSA) said sugar inventories nationwide in the 2013-2014 crop have amounted to nearly 415,000 tons as sugar firms have found it difficult to sell their products to foreign markets, including China, because domestic sugar prices are higher than in the northern neighbor.

The association said there had been only 181,000 tons of sugar exported to China in the year to November, much lower than the 325,000 tons last year.

VSSA estimate the domestic sugar output would total around 1.5 million tons in the next crop. With nearly 415,000 tons in stockpile and around 100,000 tons imported in line with Vietnam’s commitment to the World Trade Organization, there will be more than two million tons of sugar next year. So, the sugar inventory next year will be 700,000 tons after local demand is met.

Therefore, the VSSA has asked the Ministry of Industry and Trade to allow local enterprises to export 600,000 tons of sugar next year.

In the past years, though the ministry has not banned sugar exports through official channels, local exporters have not been able to export much as domestic prices are normally higher than global levels.

To export sugar via border gates, local firms must get permission by the ministries of industry-trade and agriculture-rural development for quotas on an annual basis.

Sugar prices for March 2015 delivery on the London Commodity Exchange stand at US$390.4 per ton, equivalent to some VND820,000 per ton. This is much lower than the domestic production cost of VND1.2 million per ton in the 2013-2014 crop.

Currently, sugar wholesale prices on the local market range from VND11,500 to VND12,100 per kilo while farmers sell sugarcane in the southern region for VND880-910 per kilo.

VNPT International opens branch office in Laos

Vietnam Posts and Telecommunications International (VNPT) inaugurated a branch office on December 26 in Laos, joining a growing list of companies seeking a foothold in the country’s telecom industry.

The opening of the branch is an important milestone in the process of penetrating international marketplaces and a strategic step for expanding VNPT's markets, Deputy Director of VNPT International Ho Cong Lam, said at the inauguration ceremony.

The office will offer VNPT International's products and services along with the products of its affiliates, he added.

On the same day, the firm signed contracts for providing services to large telecom companies in Cambodia, including Telecom and ISP Planet.

VNPT is an affiliate of the Vietnam Posts and Telecommunications Group owned by the Vietnamese Government and the national post office of Vietnam, which is the second-largest company in Vietnam.

The company provides customers with direct services such as international private leased circuit (IPLC), IPLC transit, IP/VPN (virtual private network), satellite leasing services for customers in Vietnam, Laos, Cambodia, Thailand and other nations throughout the world.

Goods plentiful for Lunar New Year holiday

It is nearly two months away from the Lunar New Year festival but manufacturers and retailers across the capital city of Hanoi are piling up goods for the occasion.

The total value of merchandise for the New Year holiday is estimated at 16 trillion VND (761 million USD), mostly pork meat, fresh seafood and vegetables, according to the municipal Department of Industry and Trade.

Ho Quoc Nguyen, Director of Public Relations at Big C supermarket, said the purchasing power is expected to increase 15 percent from last year’s same period, adding that confectionery are plentiful, including popular and premium brands of Kinh Do, Trung Nguyen, Vinamit and Hai Ha.

Big C also stores up 420 tonnes of fresh meat, and fruits of various kinds from the Mekong Delta.

The Hanoi Beer, Alcohol and Beverage Corporation (Habeco) plans to put 145 million litres of Hanoi and Truc Bach-branded beer up for sale.

The Hai Ha and Trang An confectionery companies turned out 8,500 and 2,700 tonnes of sweeties and jams, respectively.

Businesses involving in the city’s price stabilisation scheme plan to sell 4,000 tonnes of rice, 900 tonnes of pork meat, 450 tonnes of chicken and duck meat, 5.5 million eggs, 200 tonnes of frozen seafood, 1,500 litres of cooking oil, and 1,500 tonnes of vegetables.

Deputy Director of the municipal Department of Industry and Trade Tran Thi Phuong Lan assured that between now and the Lunar New Year, there will not be a dramatic price hike.

To shore up demand, shopping malls and supermarkets such as Big C, Hapro, Vinmart, Fivimart, Intimex and Metro offer thousands of products at discounts, not to mention other value deals.

To keep a check on supply and prices, the department will direct market management units to crack down on speculation phenomena and check points-of-sale that offer items listed in the price stabilisation scheme.-

Trade-housing area master plans in northern Red River unveiled

A master plan for a trade-service-housing area in the northern bank of the Red River was unveiled by the Hanoi Department of Planning and Architecture on December 26.

The area covers 9.37 hectares, of which 7.47 hectares will be used for the construction of trade-service centre and housing.

Located in Dong Anh town, Hanoi’s suburban district of the same name, the area is expected to accommodate 1,700 people.

The same day, the Department announced a resettlement area planning in Kim Chung and Vong La communes in Dong Anh district.

Covering 20,15ha, the area has an estimated population of over 5,200 people.

According to the Department, the areas are part of the Hanoi master plan for 2030 with a vision to 2050 approved by the Prime Minister in a bid to build a modern urban area with social infrastructure, green trees and public works.

The planning is expected to create a driving force for the development of urban areas in the northern bank of Red River as well as serving a basis for local authorities, relevant agencies and local people to manage and supervise the use of land as approved in the plans.

Woodworking sector targets export growth of 15% next year

The woodworking sector is pinning high hopes on export growth of at least 15% next year given rising demand of major importing markets.

Huynh Van Hanh, vice chairman of the Handicraft & Wood Industry Association of HCMC (HAWA), said shipments of wooden products this year are estimated to increase 15% year-on-year to US$6.4-6.5 billion.

The growth is high but still below the potential of the sector, Hanh told reporters on the sidelines of a conference on the wood sector in Hanoi on Tuesday.

Therefore, sales of Vietnam’s wooden products will grow 15% next year if demand of the U.S., Europe and Japan continues to rise. Another reason for the high growth target is the Government has decided to add the processing sector to the list of 10 spearhead industries set to enjoy incentives until 2020, Hanh said.

Hanh noted that Vietnam still has many opportunities to step up exports of wooden items as the country now holds a share of a mere 2.56% among the 70 countries exporting wooden products in the world.

Meanwhile, as the biggest wooden furniture producer in the world, China is facing an anti-dumping tax on its shipments of wooden products to the U.S.

Vietnam has joined negotiations over the Forest Law Enforcement, Governance and Trade (FLEGT) with the European Union (EU) to prove its strong determination in protecting the environment. Therefore, if Vietnam’s wooden products meet requirements of the EU, they will meet the criteria set out by South Korea, Japan, Australia and New Zealand.

To attract more importers, Hanh called for local wood enterprises to improve their processing lines and speed up application of modern technology to guarantee stable quality for their products. They should use input materials more efficiently to earn more from the material they have.

Commenting on the Ministry of Agriculture and Rural Development’s new decision prohibiting material wood imports from Mekong sub-region countries from this month, Hanh said HAWA backs the ministry’s move.

Laos now accounts for the highest revenue share of total wood material imports into Vietnam but local enterprises do not use much wood from this country to turn out finished products. The majority of logs from the neighboring country is transported to Vietnam for re-export to other countries as it does not have seaports, and this has led the volume of wood shipped to Vietnam surging.

This is why a number of countries in the world have accused Vietnam of contributing to deforestation in Laos and Cambodia, Hanh stressed.

Hanh confirmed that local enterprises mainly use wood from Laos and Cambodia for construction projects and to turn out products for domestic sale and do not process products for export. Transporting logs from the two neighboring countries to Vietnam has resulted in many of Vietnam’s roads deteriorating.

In fact, if Laos’ log exports via Vietnam are excluded, the U.S. is Vietnam’s biggest supplier of wood and Vietnamese firms mostly use this material source to make products for export.

Stock market performs better this year

The performance of the nation’s stock market is better this year than last year as the macro economy has stabilized, according to the State Securities Commission of Vietnam (SSC).

SSC’s review report for 2014 showed that the VN-Index and the HNX-Index have gained 9% and 24% respectively against 2013.

Market capitalization nears VND1,130 trillion (US$52.7 billion) this year, up by VND179 trillion compared to late 2013 and equivalent to 31.5% of gross domestic product (GDP).

Liquidity has also improved strongly, standing at VND5.5 trillion (US$257 million) per session or double the year 2013. In addition, the total value of listed shares has increased 19% against last year.

Total mobilized capital is estimated at VND237 trillion (US$11 billion), rising by 6% compared to last year. Of the amount, share issuance and equitization account for VND23 trillion. Around 207 bond auctions have been organized, raising nearly VND214 trillion, up 8% against last year.

The listed enterprises that are profitable have climbed 5% year-on-year and combined after-tax profits of all listed firms in January-September have grown 6.1% against the same period last year.

In January-November, net foreign capital totaled US$9.3 million. Portfolio value had amounted to US$14.4 billion as of the end of October, up by around US$2.8 billion against late last year.

Local firms not fully aware of technical barriers to trade

Vietnamese businesses are not fully aware of technical barriers to trade, challenges and opportunities, said Duong Dinh Giam, General Director of the Industrial Policy and Research Institute at a seminar in HCM City on December 26.

Giam said in the international economic integration process, the role of standardisation in general and technical barriers to trade in particular becomes increasingly important, thus countries have paid great effort to establish and maintain technical measures, which may create implicit barriers to international trade and imported goods.

The common trend of international trade is that goods are in free circulation with an import tariff of zero. However, countries will use more non-tariff measures to protect domestic production against the fierce competition from imported goods, Giam added.

Nguyen Binh Giang from the Import and Export Department under the Ministry of Industry and Trade echoed Giam’s views, saying that the basic solution for businesses is to accelerate market research and trade promotion, and build a long-term strategy to improve the quality of export products to make them more competitive.

Moreover, local firms should use more locally found materials to reduce dependence on foreign suppliers, renovate their operation methods and foresee arising challenges and technical barriers to have timely response.

At the seminar, experts all agreed that it is essential for local firms to raise awareness and update information about technical barriers to trade on Vietnam’s important export markets like Japan, the US, Russia, EU and ASEAN as the country is deeply integrating into the world market.

In addition, the Government should develop supporting programmes to help key export industries overcome technical barriers to spur export value and effectively penetrate international market.

The Central Highlands region, home to distinct cultures and heritages of 47 ethnic minorities, is looking to leverage its tourism strength to the fullest.

Lying on a series of contiguous plateaus up to the height of 500-800m, the region consists of Dak Lak, Gia Lai, Kon Tum, Dak Nong and Lam Dong provinces, which are rich in biodiversity with primeval forests, valleys and fantastic scenery in mild climate all year-round.

The Central Highlands cultural space boasts hundreds of cultural, art and architecture identities, enabling the development of a range of ecological, resort, religious, cultural and adventure tours.

During the National Tourism Year 2014, the region welcomed nearly 6 million visitors, including 400,000 foreigners, generating a revenue of over 10 trillion VND, up 12 percent. Over 4.8 million of them, including about 250,000 foreign tourists, came to Da Lat city, Lam Dong province.

However, there is still a long way to go to professionalise marketing activities, head of the Vietnam National Administration of Tourism (VNAT)’s Market Department Le Tuan Anh told an international workshop “Da Lat – Central Highlands tourism: integration and development” in Da Lat city on December 26.

VNAT called for designing a tourism trademark identification system exclusively for the Central Highlands, which includes a slogan and symbol, among others.

In the meantime, localities were urged to raise public awareness of environment protection practices needed to make tourists come back again.

Anh suggested prioritising marketing campaigns in the ASEAN member countries, China, Japan, and the Republic of Korea while keeping to local destinations, such as Hanoi, Ho Chi Minh City, the central cities of Nha Trang and Da Nang.

Chutathin Chareonlard, Director of the Tourism Authority of Thailand, called on infrastructure to be upgraded and more Thai-speaking tour guides trained since the number of Thais visiting Da Lat city reached 14,000 in the first 11 months of 2014.

Experts expected more tours designed for young and elderly tourists from Japan, which has recently shown interests in sightseeing in Vietnam.

Japanese and Thai experts proposed that there should be trips for their media and travel agencies to the Central Highlands to learn more about its attractions and services.

Vietnamese food company affirms trademark in Germany

A Vietnamese-owned company operating in food and restaurant services has received a certificate of merit by the Ministry of Industry and Trade for efforts to affirm its trademark in Germany and Europe in general over the past two decades.

At a ceremony in Berlin on December 25 to mark the 20-year development of the Thang Long Company, Ambassador to Germany Nguyen Thi Hoang Anh stated that the company has provided jobs for not only Vietnamese but also Germans, contributing to strengthening the attachment and solidarity between the two peoples.

The company boasts more than 30 shops across Germany and in some countries in eastern and western Europe, employing over 400 people.

Through its services, the company has helped promote the gastronomy of Vietnam and Asia to international friends.-

Tax inspection conducted in over 67,800 businesses

The General Department of Taxation has to date conducted tax inspections over more than 67,800 enterprises, accounting for 14 percent of the total operating ones, heard a conference in Hanoi on December 26.

Addressing the conference to review the sector’s operation in 2014, Deputy Prime Minister Vu Van Ninh spoke highly of the achievements the sector gained in the context that the country still faced many difficulties.

However, he asked for tax inspection over at least 20 percent of the 490,000 operating businesses.

In response to the Deputy PM’s request, Finance Minister Dinh Tien Dung proposed the rates of 16 percent, 18 percent and 20 percent within three years.

According to the General Department, tax collection is estimated at 681 trillion VND (32 billion USD), equivalent to 109.1 percent of the projection, of which domestic tax is 580.1 trillion VND, or 107.1 percent of the estimate, and tax from crude oil sales is 101 trillion VND.

During the year, the sector also intensified the reform of administrative procedures and the application of modern technology. Nearly 95 percent of the businesses conducted e-tax declaration.

Meanwhile, the time spent on tax procedures fell from 537 hours to 167 hours per year. The sector is striving to decrease additional 45.5 hours.

Thai Nguyen province draws over 3.2 billion USD in FDI

The northern province of Thai Nguyen granted licences to 25 foreign direct investment (FDI) projects worth over 3.2 billion USD in 2014, making it one of the top localities nationwide in FDI attraction.

Most investment was poured into manufacturing mobile phones and spare parts and support electronic equipment for the Samsung hi-tech complex in the Yen Binh 1 Industrial Park.

During the year, the province also allowed 26 existing FDI projects to be added with a total capital of over 100 million USD, proving it as a fertile land for investors, especially when the Samsung hi-tech complex became operational last year.

Of the total newly registered and added FDI, over 1 billion USD was disbursed.

Foreign businesses earned over 8.7 billion USD in revenue, generated jobs for 52,000 workers and contributed more than 10 million USD to the State budget.

Director of the provincial Department of Planning and Investment Dang Xuan Truong said the province has adopted incentives for businesses to promote investment and seek partners, while mobilising financial sources for site clearance at centralised industrial parks.

To create a healthy investment climate, local authorities withdrew investment licences and stop operation of projects with slow progress and failing to abide by local regulations on investment.

In 2015, the province aims to attract 1.3 billion USD in FDI.

Exports rise 13.6 percent

Vietnam’s export sector has so far this year earned about 150 billion USD, up 13.6 percent against the previous year, the Nhan Dan (People) online newspaper reported.

In 2014, Vietnam's export activities have focused on manufactured goods accounting for 73 percent of the total export volume, followed by agricultural (15 percent) and mineral exports (6 percent).

Export growth helped stimulate GDP growth, create jobs and reduce inventories. These results have reflected that the Government’s export strategy is on the right track.

It has helped curbing trade deficit as Vietnam continued to maintain a trade surplus in 2014, projected at 1.5 billion USD.

In recent years, foreign-invested enterprises have made significant contributions to economic and export growth. In 2014, this sector remains a key player in export value and growth.

Revenue from foreign companies was estimated at 101.8 billion USD in 2014, up 15.4 percent over the previous year and accounting for more than two thirds of the country’s total earnings.

Main export products have included phones, computers, electronic devices, and cameras, among other things.

Vietnamese Government regards foreign direct investment (FDI) as an important source to drive economic development. The Government and relevant ministries have introduced many measures to attract, manage and streamline FDI. Vietnam has prioritised FDI projects which are high-tech, environmentally friendly products.

Recently enterprises have taken advantage of multilateral and bilateral economic integration opportunities to boost export growth. The total export value of goods with a certificate of origin is on the rise, reaching 19.3 billion USD in the first nine months of 2014, a year-on-year rise of 94 percent.

Vietnam is actively negotiating the Trans-Pacific Partnership (TPP), an FTA with the EU and the European Free Trade Association (FTA), which comprises Norway , Iceland , Switzerland and Liechtenstein . The country has also recently concluded negotiations of trade deals with the Republic of Korea and the Customs Union of Russia, Belarus and Kazakhstan .

These trade pacts are expected to bring about many opportunities for Vietnamese exports, creating a foundation for the domestic manufacturing sector to join global supply chains.

A number of Vietnam’s major exports such as garments, footwear, seafood and agricultural produce are still being levied high tax in some major markets.

However, the question is how enterprises can take advantage of these FTAs to boost exports and expand their market. Currently there are enterprises that do not pay enough attention to tariff preferences. The Ministry of Industry and Trade (MOIT) should help businesses fully understand FTAs’ content so that enterprises can fully take advantage of those FTAs. The MOIT should also co-ordinate with relevant ministries and agencies to work out measures to attract investment in export supply chains in order to increase the localisation rate and value for export products.

However, raw material issue are a key problem for manufacturing goods for exports as the country has relied heavily on imported raw materials. The country is also expected to face more anti-dumping lawsuits and increased competition in the global market.

In order to achieve the 2015 export target of more than 160 billion USD, up 10 percent against 2013, the Ministry of Industry and Trade and relevant ministries and agencies should focus on measures to support enterprises, remove difficulties for farmers and encourage foreign companies to invest in high-tech and environmentally friendly projects.

They should also work together to increase trade promotion activities, help the business community to take advantage of free trade agreements, timely provide market forecasts and up-to-date information on export markets while further simplifying administrative measures to reduce customs costs and clearance time.

Property inventories slide in HCMC

Increasing demand has led to a remarkable decrease in property inventories in HCMC in the last months of this year, according to the city’s Department of Construction.

Data of the department showed more than 1,230 apartments were delivered to buyers in October and November, and more than 3,130 in January-November. The total number of condos sold in October-November was equivalent to some 65% of apartment sales in the first nine months of the year.

The department said there are more than 6,200 unsold apartments and they mostly measure over 70 square meters and are located in areas with unfavorable road access or unfinished infrastructure.

According to the Vietnam National Real Estate Association (VNREA), the inventories of apartments, houses and land lots in January-November are in decline, with apartments making up 75%.

Property experts ascribed the sharp fall in real estate inventories to rising demand in the final months of the year, especially for finished homes.

The successful transactions for apartments at property exchanges in HCMC have soared 20-30% since the beginning of this quarter as observed by the Daily. Small condos with affordable prices have sold well in the past months.

Le Hoang Chau, chairman of the HCMC Real Estate Association (HoREA), expected more remittances towards the year-end would help property developers reduce their inventories as recipients can buy homes.

Tolls at An Suong-An Lac Station to surge next year

Vehicles running on the National Highway 1 section in HCMC will have to pay new tolls which are 1.3 to two times higher than the current levels at An Suong-An Lac Toll Station in Binh Tan District from early next year.

The HCMC government has approved Infrastructure Development Investment Joint Stock Company (IDICO) to apply the new tolls on the 14-kilometer section of National Highway 1 from January 1 next year to 2019.

Besides the toll hike, IDICO, the investor of the project to upgrade the section, has suggested a road map for increasing tolls at the station in 2020, 2025 and 2030 to recoup investment capital for the project by 2033.

The upgrade project for the section running from An Suong Intersection in District 12 via Binh Tan District to An Lac Roundabout in Binh Chanh District is carried out in three phases.

The first phase costing more than VND831 billion (over US$38.8 million) was opened to traffic in December 2004 and the investor started to collect tolls for this section in January 2005.

The second phase worth VND705 billion includes construction of two interchanges and overpasses between National Highway 1, and provincial roads 10 and 10B as well as a divider between lanes for autos and motorcycles.

In the final phase, the investor is in the progress of finishing an interchange between National Highway 1 and Road 2 (Huong Lo 2) at a cost of VND407 billion.

The An Suong-An Lac section of National Highway 1 is the key road linking HCMC and provinces in the southeastern, southwestern, central and northern regions.

Time-buying tactics

The deep fuel price cuts early this week as a result of tumbling global oil prices must have bucked consumers up since previous reductions were insignificant.

After each round of fuel price reductions, there often appear questions about when and how much transport costs would be lowered. However, transport enterprises usually adopt time-buying tactics, saying they consider the next move or argue it takes some time to change transport fees. Since the beginning of the year, fuel retail prices have declined by a combined VND7,760 per liter of gasoline, VND5,730 per liter of diesel and VND5,510 per liter of kerosene to VND17,880, VND16,990 and VND17,400 respectively, the lowest levels in four years.

According to the Price Management Department under the Ministry of Finance, fuels account for 25-35% of transport costs for gasoline-fueled vehicles and 35-45% for diesel-fueled automobiles. Meanwhile, transport experts, the fee reductions last month, with 6-16% at coach stations in Hanoi, 6-7% in Haiphong and 2-11.33% in HCMC as reported by Nguoi Lao Dong, are not proportionate to the fuel price declines. Besides, many enterprises are still reluctant to lower their charges.

Many transport associations and enterprises nationwide say they are reviewing input costs to determine new charges. Though the fuel prices were cut sharply on Monday and local authorities nationwide have been urged by the Ministry of Finance to strengthen the monitoring of transport charges, transport enterprises have yet to make a move. They have excuses for delays. To them, it is almost impossible to adjust their charges overnight.

Re-calculating costs and reporting new fares to the management agencies are among what should be done before introducing new charges, the news website Vietnamnet says, citing Nguyen Van Thac, chairman the Transport Association in Nam Dinh Province. The chairman of the Transport Association in Dien Bien Province, Nguyen Quoc Manh, offers the same excuse, saying revising charges “may take half a month”.

On the side of the management of coach stations, leaders of Giap Bat Coach Station and My Dinh Coach Station in Hanoi say on Vietnamnet that it might take a week or so to determine new transport fees as enterprises have to ask authorities for approval, and then print new bus tickets. They reassure that they will have no choice but to lower fares to retain passengers.

Similarly, taxi operators are also planning to revise down their fares at the moment. The taxi fare reduction in HCMC could be around VND500 per kilometer and according to them, once fares are changed, taximeters should be tested again, a process which takes time, Tuoi Tre reports, citing the chairman of the HCMC Taxi Association, Ta Long Hy.

Bui Danh Lien, chairman of the Hanoi Transport Association, also points out a similar difficulty, telling VTC News: “Immediate fare reductions are impossible.”

“Taxi companies with thousands of cabs in Hanoi want to apply new fares early, but testing and adjusting taximeters takes some time and taxi operators have to print new price labels,” Lien says, adding it normally takes 10-15 days.

Given their long delays, the Ministry of Transport has taken action by telling local transport authorities to set up teams to inspect fares of enterprises to ensure the interests of customers and help lower prices of other goods and services.

Instead of waiting for transport businesses to lower fees, heavy sanctions should be adopted against those overlooking the interests of consumers.

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