Govt leaders outline FDI roadmap to boost growth

Reforming the investment environment and improving foreign investment policies are crucial cogs in Viet Nam's efforts to restructure the economy and reform growth models.

This was the message from leading Government officials at the regular cabinet meeting of the Government for December held yesterday.

The Government vowed that Viet Nam would work to attract investment in projects through quality human resources rather than the present model of low-cost labour.

The measures proposed are the revision of policies to enable favourable conditions for investment and reforms of business promotion activities.

Prime Minister Nguyen Tan Dung said outdated policies would have to be revised as they were no longer suitable in the current business context.

Dung also called for quick completion of the draft for the Resolution on foreign direct investment so that the Government can act as soon as possible.

The cabinet members were also in favour of support policies on poverty reduction during 2013-17 for 23 poor districts in 11 provinces nationwide.

SBV submits asset management plan

The State Bank of Viet Nam submitted a proposed decree on the establishment and operation of a national asset management corporation to the Government yesterday.

The decree, expected to be issued in January, sets up a corporation under the so called N+1 model, in which the central bank acts as the manager while other ministries also participate.

Basically, it is a special 100 per cent State-owned enterprise established by the Prime Minister for non-profit activities.

"All the procedures of collecting opinions on and establishing the asset management corporation will be completed in January," Deputy Prime Minister Hoang Trung Hai said at a meeting yesterday between the Government and localities.

Meanwhile, the Ministry of Finance would finish regulations on mergers and acquisitions, equitisation and debt restructuring.

It would also be the ministry's responsibility to set up debt instruments to deal with the troubles in banks and State-owned enterprises (SOEs). A decree on business debt management to replace Decree 69, which deals with the settlement of outstanding debts in SOEs, is expected to be submitted by the second quarter of next year.

At the meeting, Hai told the central bank to review and classify bad debts by type of business and credit institution and by sector in order to implement appropriate measures for handling each type of debt.

Hai also asked the bank to improve regulations on credit safety to limit credit risks. At the same time, he added, credit institutions should be able to take a more active role in implementing current policies.

The Government would have the responsibility to support credit institutions handling bad debt and prevent bad debts from arising.

Thai company acquires majority stake in tile firm

Siam Cement Group (SCG) has signed a conditional share purchase agreement with the Prime Group Joint Stock Company to acquire majority ownership of Viet Nam's largest ceramic tile maker for US$238 million.

The agreement calls for the wholly owned SCG Building Materials to acquire 85 per cent of the Prime Group.

The transaction, which indicates a strategic commitment to grow and enhance its capabilities and offerings within ASEAN, will be completed early next year.

Prime Group Joint Stock Company operates eight ceramic tiles plants with a total design capacity of 90 million square meters and commands a 30 per cent domestic market share.

State-owned food processor to divest from affiliates

Deputy PM Vu Van Ninh has approved the restructuring plan of the Viet Nam Southern Food Corporation (Vinafood2) by 2015.

Accordingly, the food corporation will have withdrawn its capital from 18 enterprises, including Vietcombank, TrustBank, Bao Minh Insurance Corporation, and Ha Tien Cement.

Under the plan, the corporation will own 10 food companies, two agricultural and food product companies and Binh Dong Flour Mill Company.

Vinafood 2 was commissioned to focus on a one-million-tonne rice storehouse programme with automatic machines for dying, milling and processing.-

MobiFone joins regional telecommunciations alliance

MobiFone has become a member of the Bridge Alliance, the Asia Pacific's leading mobile operators' association comprising members from 12 major territories and with over 470 million customers.

"The alliance will provide us a perfect technical service system to exchange expertise and experience with other mobile service providers in the Asia Pacific region," MobiFone general director Mai Van Binh said.

Now the company's roaming service around the Asia – Pacific will improve, while customers will also get a better price.

Besides MobiFone, which becomes the 12th member, Bridge includes Airtel (India), AIS (Thailand), CSL (Hong Kong), CTM (Macau), Globe Telecom (the Philippines), Maxis (Malaysia), SingTel Mobile (Singapore), Optus Mobile (Australia), SK Telecom (South Korea), Taiwan Mobile (Taiwan), and Telkomsel (Indonesia).

Central province seeks major investment

The central province of Thua Thien–Hue is seeking investment in more than 60 major projects, according to its Department of Planning and Investment.

They are in sectors like tourism, services, and construction, and mostly in the Chan May–Lang Co Economic Zone, Hue city, and some industrial parks, Le Dinh Khanh, deputy director of the department, said.

The province would create favourable conditions and offer incentives to investors in key projects, and has been promoting investment and streamlining procedures, he said.

In fact it has already issued an official document providing investors with specific guidance, thanks to which investment procedures have become significantly simpler, he explained.

In 2009 the People's Committee listed the sectors and the locations, economic zones, and industrial parks in which investors would get incentives, he said.

It also improved infrastructure to meet the needs of investors, he said.

Thua Thien–Hue Province has so far attracted investments of more than US$1.9 billion in 64 FDI projects.

Thua Thien–Hue, which has an area of more than 5,000 square kilometres, is located in the central key economic zone, and has a coastline of 128 km.

It is home to the 22,000ha Tam Giang – Cau Hai Lagoon, the largest in Southeast Asia.

It has fairly good transport infrastructure with the railway and the arterial north-south highway passing through it.

Phu Bai International Airport provides air connectivity. It has the Thuan An Port and Chan May deep-sea port.

It has enormous tourism potential, with its beautiful landscapes and historical relics. Its Lang Co Bay is internationally recognised as one of the 30 most beautiful in the world.

Hue, the former capital, and Nha nhac cung dinh Hue (Court music of Hue) have been recognised by UNESCO as cultural heritages.

Dubbed as Viet Nam's festival city, it remains a popular destination for both local and international visitors.

The province is one of the three largest centres for training human resources in the country with eight universities and colleges and a number of research institutions.

Khanh said all these factors play an important role in attracting investment.

Monetary policies stabilise economy

Monetary policies have achieved positive results in facilitating the restructuring and developing the nation's market economy, according to a report from the Academy of Policy and Development.

The report was presented at a seminar co-hosted yesterday by the Institute for Policy and Development and the Ministry of Planning and Investment to review policy efforts to curb inflation, ensure the safety and stability of the nation's financial system, and boost economic growth.

The report acknowledged the role of the State Bank of Viet Nam in planning and administering monetary policy and found that the bank had been successful in stabilising the foreign exchange rate and boosting foreign reserves. The balance of payments improved and the gold market has also been more tightly controlled. Inflation, while still troubling, has been held to single-digit levels, dropping from 18.13 per cent in 2011 to about 7 per cent this year.

Lending interest rates have also fallen from 2011 levels but still remain too high to effectively serve the country's need for capital. Nevertheless, credit growth has picked up in such sectors as agriculture and rural production, export-oriented enterprises, support industries and small- and medium-sized enterprises, the report said.

Dr Vu Minh Luan from the Academy of Policy and Development outlined his suggestions that the Government needed to work out a comprehensive plan for medium- and long-term financial and monetary policies. The Government also needed to closely supervise public spending to ensure the effective use of resources, Luan said.

To address rising bad debt levels in the nation's commercial banking system, a senior advisor of the Bank for Investment and Development of Viet Nam (BIDV), Can Van Luc, suggested that the Goverment should help business reduce surplus inventories and needed to take steps to stimulate the frozen real estate market.

Luc also pointed to the role of risk management funds and loan restructuring in helping ease the bad debt crisis.

Handling bad debts and ensuring the safety of credit institutions were essential to restructuring the economy, seminar participants agreed.

Consortium sets floor price for rice exports
 
A floor price of US$370 a tonne for exports of 35-per-cent broken rice has been announced by the Viet Nam Food Association, to take effect from today.

The move was to stop exporters setting lower prices, which was affecting the country's rice operations, the association said.

The association said rice exporters could still decide on export prices for other varieties, however, it was expected the floor price for the 35-per-cent broken grain would influence other grades.

Previously the association had only set floor prices for higher grade rice varieties.

The country has exported 7.495 million tonnes of rice worth $3.345 billion so far this year. The export price for 5-per-cent broken rice last week was $410-420 per tonne, up $5-10 over the previous week. The price for 25-per-cent broken rice also inched up to $372-390 per tonne.

Last week, husked grain price in the Mekong Delta region increased by VND100-150/kg to VND5,300-5,600/kg.

Domestic exporters attributed the price hike to a rising demand in China. China was Viet Nam's largest rice importer, with 1.92 million tonnes in the first 11 months, according to the General Department of Customs.

Meanwhile, rice traders forecast the rice price could decrease early next year thanks to increasing supply. Viet Nam and Thailand would harvest rice crops in February while Thailand and India had 40.6 million tonnes of rice in storage.

Viet Nam was forecast to be the world's second rice exporter this year behind India.

PetroVietnam achieves goals, despite economy
 
PetroVietnam has accomplished most of its goals for 2012 despite challenges caused by economic woes in both domestic and foreign markets, PetroVietnam's deputy general director Le Minh Hong announced yesterday at the group's annual business review meeting in Ha Noi.

Hong said both production and revenue had exceeded the company's target levels, except for petrol production. Only 5.61 million tonnes of petrol were produced this year, accounting for 94.3 per cent of the yearly goal.

The director attributed the lower-than-expected petrol production to the unstable operation of Dung Quat Oil Refinery, which produced just 5.14 million tonnes of petrol, equivalent to 95 per cent of the goal, Hong said.

Total revenue for Petro-Vietnam and its affiliates this year reached a combined VND727.7 trillion (US$34.8 billion), 17 per cent higher than the target and 14.4 per cent higher than last year. Of the total, PetroVietnam earned VND380 trillion ($18.18 billion), a year-on-year increase of 10 per cent.

Total pre-tax profits reached VND113.1 trillion ($5.4 billion) and mainly came from oil and gas exploitation and production and oil and gas services.

PetroVietnam's chairman Phung Dinh Thuc said before 2006, the group's revenue mainly came from crude oil exports, but in recent years, its revenue was based on three pillars: oil export, industrial production (power, fertiliser and gas) and oil and gas services.

This year, PetroVietnam exported a total of 16.7 million tonnes of oil worth more than $10 billion, while revenue from oil and gas services reached VND234 trillion ($11.2 billion), accounting for 30 per cent of the group's total revenue and representing an increase of 13 per cent year-on-year.

The state oil and gas group signed five new contracts this year (four in the domestic market and one in the overseas market) as well as two co-operation agreements with Uzbekistan and Kazakhstan. It also had new oil and gas discoveries (Kinh Ngu Trang and Tho Trang blocks) and launched seven oil fields into operation, helping lift oil and gas reserves to 48 million tonnes, 37.1 per cent higher than the 2012 target.

In October, the group inaugurated the Ca Mau Gas - Electricity - Fertiliser Industrial Complex, which helps lift the group's power generation to 15.1 billion kWh this year (a year-on-year increase of 12.2 per cent) and fertiliser production to 1.4 million tonnes (up 77.3 per cent year-on-year).

The group's contribution to the State budget totalled VND186.3 trillion ($8.9 billion) this year, a year-on-year increase of 15.8 per cent and 38.2 per cent higher than its initial target – "an impressive result given both domestic and international economic difficulties," Thuc said.

Despite its encouraging showing this year, PetroVietnam has set modest goals for next year. It aims for total revenue of only VND653.3 trillion ($31.26 billion) and a State budget contribution of just VND143.2 trillion ($6.85 billion), both less than this year.

Trade with South Africa increases in 2012

Bilateral trade with South Africa reached US$750 million in 2012, with Viet Nam's exports to South Africa accounting for $630 million of the figure, 5 per cent over the target of $600 million set for the year. Leading export products included coffee, cashews, pepper, rice, garments, footwear and electronics.

The commercial counselor at the Vietnamese embassy in South Africa, Le Kinh Thang, said Vietnamese businesses could increase their market share in South Africa by promoting their products through exhibitions and fairs, and he advised them to keep in close contact with Viet Nam's trade offices before negotiating and signing any contracts in a foreign country.

Ministry adjusts fuel import quotas at year's end

The Ministry of Industry and Trade has reduced the minimum fuel import quotas for 10 petroleum importers for the final days of the year. The major importer, Petrolimex, will see the largest reduction in its quota, from 5.8 to 4.9 million tonnes, while PetroVietnam Oil Corporation's quota will be lessened by 336,000 tonnes and Petec's by 315,000 tonnes.

Two other companies, Dong Thap Petroleum Trading Co Ltd and Petrolimex Jet Fuel Joint Stock Co, saw their import quotas increase.

Customs statistics show that fuel imports through December 15 had reached over 8.8 million tonnes, with a value of US$ 8.6 billion, down $953 million from the same period last year.-

VCTV, ARICO sign 10-year Pay-TV deal in Da Nang

Viet Nam Cable Television (VCTV) and Song Thu Cable Television (ARICO) signed a 10-year deal here yesterday to provide digital standard-definition (SD) and high-definition (HD) Pay-TV services to subscribers in this central region city. The deal also calls for the partners to provide needed infrastructure.

ARICO, which has launched a 70-channel TV, internet and video-on-demand service for 100,000 subscribers in the city, will also expand offerings from Viet Nam Multimedia Corporation, HCM City Television and K-Plus.-

State Bank schedules 12% credit growth

The State Bank of Viet Nam planned for the nation's lending growth to reach 12 per cent next year, said Monetary Policy Department director Nguyen Thi Hong at a meeting at the central bank's headquarters yesterday.

"In 2013, the bank will manage monetary measures cautiously and flexibly with the aims of controlling inflation, intensifying economic stability and supporting economic growth at reasonable levels," she said. "This will ensure that interest and exchange rates are suitable to developments of inflation and other macro-level balances and the monetary market, help spur the banking system's restructuring process and promote systematic safety."

Hong said that the central bank would closely supervise the supply of money and credit to keep inflation at 8 per cent and economic growth at about 5.5 per cent next year as targeted by the National Assembly, while continuing to supervise credit growth at lending institutions to assure that lending expansion was safe and efficient.

The bank would direct the institutions to concentrate capital on production and business activities, especially for sectors prioritised by the Government, which include agriculture and rural areas, export, support industries, small- and medium-sized enterprises and high-tech areas. For non-prioritised sectors, lending would not be restricted.

The bank would continue to allow lending institutions to offer short-term loans in foreign currencies at their discretion to petrol importers and local businesses involved in exports.

Interest and exchange rates would follow market developments, particularly changes in supply and demand of foreign currencies and international payment balances.

The State Bank would boost co-operation with ministries and sectors to strengthen inspection and management of foreign currency and gold markets, prevent dollarisation in the economy and reduce bad debts.

According to Hong, the country's lending grew 6.45 per cent this year, with credits in dong increasing 8.92 per cent and credits in foreign currencies expanding 3.51 per cent.

Samsung eyes VN market

The Korea Times reported that Samsung Electronics would pour US$2.2 billion into its factories in northern Bac Ninh and Thai Nguyen provinces by 2020 to boost output and save manufacturing and logistics costs and delivery time.

Samsung expected to manufacture 240 million devices at its factories in Viet Nam, together with 170 million in China and 20 million in India and another 40 million in Korea, the newspaper reported.

The company aimed to sell 510 million phones next year, an increase of 20 per cent over last year's record 420 million.

Samsung's total investment in Bac Ninh Province increased to $1.5 billion after the company obtained a licence to develop its second factory, worth $830 million, in the province.

Retail sales rise despite global woes
 
The value of retail sales of goods and services nationwide rose by 16 per cent in 2012 to a total of VND2,324 trillion (US$110.7 billion), according to the General Statistics Office (GSO).

While the pace of growth was well below the average increase in recent years of about 20 per cent, it was still viewed as acceptable in light of the current economic difficulties, which have shrunk purchasing power and caused consumers to tighten their belts, the GSO said.

GSO analysts predicted retail sales would speed up in the first quarter of the new year. Inventories in manufacturing and processing industries fell this year from 30 per cent in the early months of 2012 to an average of 23 per cent for the entire year, a pattern expected to repeat in the coming months, they said.

Global management consulting firm AT Kearney has also predicted that Viet Nam's retail sales would increase by 23 per cent per year between now and 2014.

"This means the Vietnamese retail market will offer many opportunities for both domestic and foreign retail businesses," the company said in its report entitled Viet Nam Retail Market Forecast to 2014.

The report noted that the shopping habits of Vietnamese consumers were rapidly changing, with more spending in modern retail outlets due to consumer concerns about convenience and health issues, with many consumers saying that more modern outlets gave them greater access to new products as well as cleaner facilities and greater confidence in food safety.

The country currently has 636 supermarkets, 120 shopping centres and over 1,000 convenience stores, but experts have said that this figure still does not meet demand in a market soon to reach 90 million people.

Domestic private enterprises accounted for $93.7 billion, or 85 per cent of the nation's total retail sales this year, according to the GSO, an increase of 18.5 per cent over the previous year.

Foreign-invested enterprises accounted for over $3.2 billion of total sales, an increase of 35 per cent year-on-year. State-owned enterprises, meanwhile, saw total retail sales decline by 1.2 per cent to just $13.75 billion.

Jeweller DOJI Group designated as National Brand

DOJI Gold and Gemstone Group was formally designated yesterday as National Brands 2012 by the Prime Minister. DOJI Group CEO Do Minh Phu was also presented with the Labour Order, third class, for his outstanding achievements from 2007 to 2011. DOJI posted earnings this year of $1.4 billion and has also been recognised as the country's largest private enterprise by the VNR500, a listing of Viet Nam's largest businesses modelled after similar listings created by Fortune magazine.

Foreigners may bring vehicles

A draft decree on managing foreign visitors' vehicles by the Ministry of Transport is expected to allow foreigners to arrive in Viet Nam in their own cars and motorbikes.

If the decree is approved by the Government, travellers' vehicles will be allowed for a maximum of 30 days though they have to move in groups organised by local tour operators.

The vehicles will have to get technical safety and environmental protection certificates, registration and insurance papers, and temporary import documents.

Viet Nam chases Chinese tourists

Vietnamese tourism authorities have asked their counterparts in Laos, Thailand, Cambodia, and Myanmar to develop a travel programme with a joint visa for Chinese nationals to attract more tourists from that country.

The scheme is expected to help Viet Nam attract 2-2.5 million Chinese tourists in 2015 against 1.4 million last year.

The tourism authorities also plan to create new products and shopping tours, and co-operate with airlines to offer fare discounts to tourists.

Co-operation with major Chinese travel agencies will be a key element of the programme.

Emirates offers promotional fares

Emirates Airlines has announced a discount programme "Hello 2013" for passengers flying from HCM City to Dubai, Paris, London, Frankfurt, New York and Washington DC.

The programme offers discounts of 25 per cent to 30 per cent on the ticket price on select routes from January 18 – June 10, 2013. Round-trip tickets for flights to Dubai cost US$823, to Paris, $935, to London, $1,067, and to New York $1,129.

The prices announced include taxes and extra charges and apply for economy class tickets. Tickets have to be booked between December 26, 2012 and January 10, 2013. The programme is part of Emirates's efforts to promote its HCM City – Dubai route, a new on the airlines' international network that spans 120 destinations.

Thermal power plant to be built in Binh Thuan province

Vietnamese and Chinese investors yesterday signed an agreement to build a 1,200MW-thermal power plant in the southern province of Binh Thuan.

Vinh Tan 1 will be built under the build-operate-transfer model.

Three investors in the project are China Southern Power Grid (CSG), China Power International Holding (CPIH) and Vietnam Coal and Mineral Industries Group (Vinacomin).

Scheduled to be completed by the end of 2017, the plant construction is under the supervision of the Ministry of Industry and Trade (MoIT).

Vinh Tan 1 will be part of the province's Vinh Tan power centre, which includes four thermal power plants with a total capacity of 5,600MW, providing electricity for the southern region.

VN, China sign deal for thermal power

Vietnamese and Chinese investors yesterday sign an agreement to build a 1,200MW thermal-power plant in the southern province of Binh Thuan.

The plant, named Vinh Tan 1, will be established under the build-operate-transfer (BOT) model.

The investors are China Southern Power Grid (CSG), China Power International Holding (CPIH) and Vietnam Coal and Mineral Industries Group (Vinacomin).

Scheduled to be completed by the end of 2017, plant construction is under supervision of the Ministry of Industry and Trade (MoIT).

At the signing ceremony, Pham Manh Thang, head of the ministry's power department, urged investors to implement the project on schedule.

Vinh Tan 1 plant is included in Binh Thuan Province's Vinh Tan power centre, which embraces four thermal power plants with total capacity of 5,600MW. The four plants will provide electricity for the southern region.

Decentralisation process flags
 
Local decent-ralisation plans have largely failed to conform to national strategies, according to a report released yesterday by the Viet Nam Institute of Economics (VIE) and Central Institute for Economic Management (CIEM).

The report, which focuses on eight cities and provinces including Ha Noi, HCM City, Hai Phong and Kon Tum, reveals that improperly controlled decent-ralisation has caused an imbalance between industries' growth and energy supply and brought about serious damage to the environment.

Before 2003, only the Government and central level could approve State budget-funded projects. From 2003-06, the scale and characteristics of projects determined what level was authorised to approve them. In 2006, ministries and ministerial-level agencies and localities were permitted to approve a majority of projects.

However, in many cases, ministries and localities have had to rely on the Government for funding, causing many approved projects to fall short on funds and forcing localities to compete for the limited funds from the State budget, according to the report.

In many provinces nationwide, localities all vie for the same industries, such as sea transport and mine exploration, creating tougher competition and reducing national competitiveness in international integration, said VIE senior economist Vu Tuan Anh, a member of the report compiling board.

In Viet Nam, Anh said, decentralised models were applied both prior to and during the integration process in order to give localities flexibility and reduce administrative bureaucracy, especially in more complicated socio-economic activities.

However, so far, decentralisation had not been properly linked to economic integration, he said. Both national and local socio-economic development plans lacked clear objectives and forecasts about how economic integration would impact their economies.

Director of Viet Nam Institute of Economics Tran Dinh Thien said that decentralisation was a major part of restructuring the country's economy, as it related to practically every sector.

And while economic integration had many potential benefits, it was necessary to have suitable mechanisms in place in order to realise those benefits.

Besides assessing the situation of socio-economic planning and economic integration, the study also addressed foreign direct investment attraction and management, public investment and public infrastructure/services development, land management and regional co-operation.

The report is part of the Beyond WTO Programme, developed in response to a request from the Vietnamese Government for donor support to help with managing economic integration and the transition to a market economy in the period after Viet Nam's accession to the World Trade Organisation. It was funded by the Australian Agency for International Development and the UK Department for International Development.

Forum hails VN bio-gas potential

As an agricultural country, Viet Nam has great potential to develop bio-gas from agricultural and animal waste, a forum heard in HCM City yesterday.

Duong Nguyen Khang, a member of the Viet Nam Biogas Association's executive board, said animal husbandry developed rapidly in Viet Nam, and untreated waste from animal breeding was a big source of pollution.

Agricultural production and processing also created waste, he said.

At the same time countries were seeking new sources to replace or supplement traditional fossil energy sources.

"Bio-gas technology must be used to convert organic waste into bio-gas to reduce the greenhouse effect, wipe out diseases at breeding farms, and create a clean energy source for cooking, lighting, and generating electricity," he said.

"With more than 70 per cent of the population involved in the agricultural sector, bio-gas is an indispensable factor in agricultural production. Using bio-gas helps reduce environmental pollution and curbs the consumption of traditional types of energy," he said.

"Bio-gas is also used to make organic fertilisers. In some provinces and cities, especially at large livestock farms, bio-gas has become a means of using animal waste to generate energy."

Though many bio-gas plants have been built in Viet Nam, they are mostly small since the technologies for large plants are expensive, according to Dr Bui Xuan An, deputy chairman of the Viet Nam Biogas Association.

Popularising the use of bio-gas is not however easy because public awareness about it and its benefits remains limited.

Technical barriers and lack of skills to maintain bio-gas plants are also problems, while a market for this fuel has not been developed.

"The country lacks strategies and policies for bio-gas development and the cost of a plant is a bit too high for average rural residents," Khang said.

He called on local governments to map out a strategy for bio-gas development.

By the end of last year 130,000 bio-gas plants had been built in 53 provinces and cities under the Biogas Programme for the Animal Husbandry Sector in Viet Nam run by SNV Netherlands Development Organ-isation and the Ministry of Agriculture and Rural Development.

It is estimated each plant annually reduces CO2 emissions by 5.2 tonnes.

Formosa looks to expand projects in Vietnam

Formosa Plastics Group, the Taiwanese industrial giant backing a $10 billion steel manufacturing  and seaport complex in central Ha Tinh province, has announced it would expand its business in Vietnam.

The firm (FPG) made this declaration at an investor conference this month, according to Taiwanese media. It cited its low profitability in China as the main reason.

The latest announcement reaffirmed the long term commitment expressed by FPG’s president Wang Wen-yuang when he attended a ceremony for the construction of first blast furnace at FPG’s $10 billion steel integrated steel factory in Ha Tinh early this month.

“Vietnam is very important market to our company. We will increase investment in Vietnam not only in steel industry but also in other industries,” he said at the ceremony.

FPG currently owns a manufacturing complex worth approximately $1 billion in southern Dong Nai province, including a fiber factory, a power plant and a waste water treatment plan.

The group is also constructing the $10 billion steel manufacturing and seaport complex in Ha Tinh, expected to be operational by 2015. This is the first steel project of FPG in the world and will produce 7.5 million tonnes of steel each year. Also under construction in FPG’s massive complex is the first phase of the 250ha, 14-berth Son Duong port, as well as apartments for workers, office buildings and a 427-room guest house. About 1,966 hectares are set aside for the project, of which 961 hectares have been levelled so far— 48.9 per cent of the site.

FPG’s long-range plans in the province also include a large oil refinery and petrochemical complex nearby the steel integrated factory.

Hong Fu-yuan, president of Formosa Chemicals and Fibre Corp, a subsidiary of FPG, was quoted by Taiwanese media as saying that his company also had plan to expand business in Vietnam, while reduce reliance on China market.

He said his recent visit to Vietnam showed him that business opportunities here were immense.

301 bln VND needed for aquaculture sector in 2013

As much as 301 billion VND (about 14 million USD) will be needed to further propel the development of Vietnam ’s aquaculture sector in 2013.

The General Department of Fisheries under the Ministry of Agriculture and Rural Development announced the amount at its year-end meeting in Hanoi on December 25.

In 2013, the sector will step up inspection of inputs for production, multiply the model of fishing teams, modernise the fleet and encourage private enterprises to participate in breeding, said Deputy Minister cum Head of the Department Vu Van Tam.

Tam underscored that the sector’s key task in 2013 is to continue its sustainable development with more value-added products and restructuring its production with focus placed on items of the highest competitiveness.

The sector also set out other goals such as increasing aquaculture area and output and seafood catch.

In 2012, the total output of aquatic products reached an estimated 5,876,000 tonnes, up 8.8 percent compared with the set goal. Exports brought home 6.12 billion USD, representing 94.2 percent in comparison with the set plan and equivalent to the 2011’s figure.

Hanoi to have 710 price stabilisation outlets for Tet

Businesses and traders in Hanoi completed commodity reserve plans for the Lunar New Year (Tet) 2012 with 710 locations offering price-stabilized products, said the city’s department of industry and trade.

Commodity reserves were delivered for 15 businesses to stabilise prices in Hanoi. According to the plan, businesses focused on reserving and selling nine essential commodity groups, including white rice (6,000 tonnes), pork (900 tonnes), chicken and duck (350 tonnes), processed food (550 tonnes), frozen seafood products (450 tonnes), and vegetables (200 tonnes). Total capital for the reserve is VND376 billion.

For beverages, the Hanoi Beer, Alcohol and Beverage Corporation plans to release more than 50 million litres of Hanoi-trademark beer and about 10 million bottles of wine of 50 kinds. The Thang Long Red Wine Joint Stock Company also supplied about 3.5 million bottles of wine of all kinds.

The department of industry and trade said that Hanoi will arrange nine Tet markets. In additional, 10 mobile selling trips to districts, industrial zones and export processing zones will be implemented from February 1 to 5, 2013 (from December 21 to 25 of the lunar calendar).

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