Tra fish exports expected to drop 5% this year

Officials expect the value of Viet Nam's tra catfish exports to continue to fall this year, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP).

The decrease is due to anti-dumping tariffs, the US programme on monitoring catfish, and pressure from competition selling other types of white-meat fish, the association said.

Officials anticipate that the value of the tra fish export will see a year-on-year drop of 5 per cent to US$1.5 billion this year. To regain its value, the domestic fishery industry should seek to sell in more export markets and increase its market shares in existing export markets.

The association reported, in 2015, that the total value of tra fish exports reached $1.6 billion, which was 10 per cent lower than the value in 2014.

Six out of the eight largest export markets for Vietnamese tra catfish saw reductions in the value of exports in 2015 against 2014. The export value of Vietnamese tra fish fell by 5.6 per cent to the US, 14.3 per cent to the European Union (EU), 4.3 per cent to ASEAN, 39.8 per cent to Brazil, 13.9 per cent to Colombia and 13.2 per cent to Mexico.

Meanwhile, the value of tra fish exports rose by 17 per cent to the UK, 42 per cent to mainland China and Hong Kong, and 2.4 per cent to Saudi Arabia.

In most large markets, Vietnamese exports of tra fish products faced many challenges, such as lower demand, no increase in selling prices and increasingly strict standards on quality, food hygiene and safety, the association said.

Of particular concern has been the recent US preliminary results of its anti-dumping duty administrative review (POR-11) on Vietnamese tra fish fillets, which caused an immense impact on exports.

VASEP Chairman Ngo Van Ich said the two mandatory reviewed exporters – Hung Vuong and Thuan An companies – will have to pay tariffs of 3.6 US cents per kilo and 8.4 US cents per kilo, respectively, while 16 other exporters will be taxed 6 cents per kilo. At the tax rate of 6 US cents, most companies will be unable to export to the US.

Also, the new US inspection rules on tra fish suppliers pose great challenges to Vietnamese exporters, he said. Since September 2017, all countries have to submit lists of establishments that currently export catfish to the US, as well as documents proving that their products follow regulations set by the US Department of Agriculture's Food Safety and Inspection Service (FSIS). If the procedures are not followed, the companies will be barred from exporting products to the US.

The food safety service needs eight years for consideration of granting certificates to foreign companies on exporting their products to the US, according to US standards. That is a direct challenge to local firms, the association said.

Duong Ngoc Minh, VASEP deputy chairman and Hung Vuong Group's CEO, said this year that local seafood companies should not pay less attention to the US market and should, instead, focus on Asian markets with a total population of 3 billion people, including China and ASEAN.

To have stable and sustainable development of tra fish in coming time, the Ministry of Agriculture and Rural Development (MARD) should soon issue Decree 36 to ensure the quality of tra fish products, Minh said.

He also said the Government, the MARD and Ministry of Industry and Trade should have policies on advertising tra fish products at home and in foreign markets to promote consumption of those products. Officials said that tra fish consumption in the domestic market has accounted for only 5 per cent of the total consumer volume of tra fish.

SBV drafting policy to help local industries access loans

State Bank of Viet Nam (SBV) is drafting a circular guiding credit policy to make it easier for local supporting industries to access loans and make them more competitive during integration.

The Decree No 111/2015/ND-CP released in November, with regard to the development of support industries states that they can access assistance, funds, and other sources for research, development, and training.

The support industries include textiles and garments, leather and footwear, electronics, and automobile manufacture and assembly, in addition to mechanical engineering and products of support industries for hi-tech, and individuals and organisations conducting production research and developing products on the priority list.

According to economist Ngo Tri Long, support industries have a great potential for development in the context of integration, but he also said that most of the local enterprises in the industries are small and medium size enterprises (SMEs) which find it difficult to access good loans. This results in their costs and expenses rising, which makes it difficult for them to compete in the integration.

Thus, the draft is in accordance with decree 111/2015/ND-CP which takes effect from January 1, 2016, and aims to boost the development of local supporting industries.

In the draft, SMEs of supporting industries can not only enjoy an incentive short-term lending rate which does not exceed the short-term lending interest rate, but they can also be considered for loans up to 70 per cent of the investment capital. The draft states some pre-conditions for the loans. They must have a total asset value of at least 15 per cent of the loan while the equity participation must spend at least 20 per cent on investment projects. Moreover, at the time of requesting loans, the enterprises cannot have any outstanding debts.

While welcoming the draft, Le Quoc Hiep, owner of a support industry business in HCM City's Binh Tan District, said SBV should clarify which banks the SMEs should go for their loans and what is the fixed interest rates for the loans. They should also clarify what obligations banks require as there are many banks which are not always willing to lend to support industries like his.

The Viet Nam Chamber of Commerce and Industry says that by 2020, Viet Nam will be aiming to become an industrialised country with high competitiveness of support industry products and meet 45 per cent of essential demand for domestic production, consumption, while exporting 25 per cent of its industrial production value.

Transport sector restructuring efficient: Deputy PM

The transport sector has carried out business restructuring during the past year that has been described as efficient, with the Ministry of Transport playing a leading role in the process.

Deputy Prime Minister Vu Van Ninh, the head of the national steering committee for corporate innovation and development, made this announcement at a recent meeting concluding the reorganisation of State-owned enterprises (SOEs) in the sector from 2011-15.

Of note, the Airports Corporation of Viet Nam (ACV), the largest enterprise in the domestic transport sector, managing 22 airports nationwide, received VND1.1 trillion (US$49 million) from an initial public offering (IPO) last December 10.

This occurred after national flag carrier Vietnam Airlines raised a similar amount, after selling 49 million shares to the public one year ago.

Further, Deputy Minister of Transport Nguyen Hong Truong said the ministry has completed equitisation of 137 enterprises over the last five years, 67 more than the number it targeted for the period.

By the end of 2015, the ministry completed the sale of its shares in 124 enterprises through IPOs, being set to pay some VND1.7 trillion ($75.5 million) to the business development fund of the State Capital Investment Corporation, exclusive of the ACV's offering.

The ministry has also completed divestments worth VND4.4 trillion ($195.4 million), a value nearly doubling the average of all sectors, in 113 enterprises. It plans to divest from all of its corporations during the first quarter of 2016.

Also, 18 of its corporations have recorded better post-equitisation performances, with their combined asset value growing by 35 per cent during 2011-15, at VND207.93 trillion ($9.24 billion).

Also, their total ownership capital doubled to VND119.38 trillion ($5.31 billion), while the ratio of loans to ownership capital fell from 3.52 to 1.76 during the period.

In the last five years, corporations posted average growth rates of 48.7 per cent per year in pre-tax profits, 8.07 per cent per year in labourers' incomes, and 12.85 per cent in finances contributed to the State budget.

"Positive changes"

"With rationalised production and labourers' productivity, the average incomes of employees have seen positive changes," Truong said.

Additionally, Central Hospital of Transport Director Tran Trung said the hospital has been better managed, with more skillful doctors and modern equipment, since it sold nearly five million shares at an average price of nearly VND23,600 ($1.05) per unit in an IPO last October 21.

Also, Ngo Van Tuan, Chairman of the Viet Nam Waterway Construction Corporation, said equitisation saved his company from the brink of bankruptcy.

Before the firm sold 10.98 million shares with a combined face value of VND109.86 billion ($4.88 million) in an IPO in March 2014, it had nearly lost it ability to pay salaries and owed workers up to seven-month wages. But these difficulties have been settled due to the efforts of shareholders, he said.

Of special note, Vietnam Airlines announced that it has achieved the target of becoming a four-star airline with a modern fleet of aircraft, keeping abreast with the world's top airlines, just one year after its equitisation.

Deputy PM Ninh said these developments are evidence of efficiency in SOE rationalisation activities of the transport ministry, which has taken the most drastic actions among ministries and sectors in this process.

Ninh's comment came as Viet Nam's IPO activity had slackened in 2015, which was attributed to a lack of blockbuster deals.

Viet Nam News reported in December that several most-anticipated share offerings had missed the deadline for this year.

The holdup in the equitisation of mobile network operator MobiFone, Viet Nam National Shipping Lines (Vinalines) and VietJet Aviation Joint Stock Company has disappointed investors.

Vinalines CEO Le Anh Son, in particular, attributed the delay to the lengthy time of settling his company's debts, which stood at more than VND7 trillion ($311 million).

‘Highest determination'

Despite the delay in the transport ministry's Vinalines case, the progress throughout the sector apparently deserves Ninh's appreciation and is in line with Minister Dinh La Thang's promise of taking "the highest determination" in the equitisation process.

"That (equitisation) is indispensable and the only way to go, we have no other choices," he told the media.

A reasonable roadmap for equitisation, close collaboration with other ministries and sectors, along with proper selection of strategic investors, were needed for successful implementation, he added.

Ninh asked the transport ministry to complete restructuring Vinalines and the Shipbuilding Industry Corporation, a unit also facing business difficulties, in the coming months. He also ordered it to continue to review and find more SOEs needing to be equitised.

"After being equitised, enterprises must enhance management capacities and operation efficiencies to successfully integrate into the global economy," he urged.

He also asked the Ministries of Finance and Planning and Investment to build special mechanisms to assure that equitised firms improve their competitiveness.

Deputy Minister Truong pointed out that dealing with employees who become redundant in the SOE reorganisation process is a major issue, although labourers' incomes have improved in transport businesses following their equitisation.

During 2011-15, the transport ministry directed companies to assist some 20,000 redundant workers with a total amount of some VND750 billion ($36.58 million).

It has also worked with the Government, the Ministry of Labour, Invalids and Social Affairs and businesses to create new jobs for them. "But the number of redundant workers is very great at some equitised firms," he said.

Ha Noi to attract investment

This year, Ha Noi will see breakthroughs in attracting investment capital, according to deputy director of the municipal Department of Planning and Investment Tran Ngoc Nam.

In 2015, Ha Noi saw significant improvements in its investment and business environments. The city took initiatives to reduce the time needed for establishing new business, falling from five to three days, while time fulfilling procedures required to receive investment licences were also slashed to 15 days, instead of the previous 45 days.

Other administrative procedures were also simplified, Nam said.

Despite these encouraging improvements, the city's investment environment remained less competitive, as compared with other localities nationwide, he said.

Thus, the top priority this year will be given to continuing to promote administrative reforms and improving the processes of planning, investment and building to support businesses.

Also, numerous trade promotion activities will be included to attract more domestic and foreign investment, he said, adding that the city will develop solutions to handle obstacles facing investors.

Do Nhat Hoang, Director of the Ministry of Planning and Investment's Foreign Investment Agency, said to further attract FDI, Ha Noi should enhance its potential promotion and investment opportunities and eliminate obstacles in land clearance.

During a conference on investment promotion, entitled Ha Noi City 2015 and organised by the committee last August, Hoang suggested the city promote investment and business connections through banks, investment funds and consultancy companies.

According to the Ha Noi People's Committee, the city attracted US$1.4 billion in foreign direct investment (FDI) in 2015. Also, FDI disbursements experienced a year-on-year rise of 8 per cent to an estimated $1.1 billion.

From now until 2020, the city will focus on attracting investments in infrastructure construction development, establishment of hi-tech and biological parks, as well as support industries.

Other prioritised sectors for seeking investment include hi-tech agriculture, production of new materials, trade and tourism, in addition to health care, training and education.

Industry, trade sector urged to take on world

Prime Minister Nguyen Tan Dung urged the industry and trade sector to make full use of advantages and opportunities to expand export markets brought about by the global economic integration.

In a speech delivered at a conference to review the sector's activities and tasks for 2016 held in Ha Noi on Thursday, Dung underscored the great potential of the nation's domestic market of more than 90 million people.

He also requested the Ministry of Industry and Trade (MoIT) to continue its restructuring to improve the quality and competitiveness of the sector, with special attention paid to State-owned enterprises, among other tasks.

Further, he instructed the ministry to revamp regulations and policies to promote industrial production and services, to assure robust and sustainable growth.

The PM noted that free trade agreements (FTAs) could bring new opportunities to the country. The MoIT needed to promote communications so that the public and businesses could be better aware of the FTAs' opportunities and challenges. This requires detailed action plans and restructuring efforts.

"I believe that the Vietnamese people and businesses are innovative and capable of competing in international markets," he said.

He also asked the ministry to promote the movement to encourage the Vietnamese people to purchase local products, establish technical barriers, in line with international practices and commitments, while boosting administrative reforms to improve the nation's business environment.

Deputy Minister Tran Tuan Anh said Viet Nam had set a target of 10 per cent growth in exports in 2016. This means revenue from outbound shipments would reach US$178 billion next year, while the trade deficit would be kept under 5 per cent.

It planned to boost exports of processed and manufactured products, key staples and goods with high added value or notable earnings, while restricting the import of luxuries and commodities that can be made domestically.

According to the deputy minister, in 2015 Viet Nam shipped approximately $162.4 billion worth of products overseas, an annual increase of 8.1 per cent. The processing-manufacturing sector and foreign-invested enterprises contributed significantly to this growth in revenues.

Meanwhile, falling prices and reductions in quantities of agricultural produce and minerals negatively affected 2015's export turnover.

The country imported $165.6 billion worth of commodities, up 12 per cent from 2014.

A major part of imports was production materials, reflecting the considerable proportion of outsourcing in the domestic economy and the reliance on foreign suppliers, which resulted in increasing production costs and the inferior competitiveness of locally made products.

Meanwhile, the trade deficit was well controlled at two percent of export revenues, equaling $3.17 billion.

The ministry also aims for a growth rate of between 9-10 per cent in the industrial production index and a 12 per cent increase in retail and services in 2016.

Reviewing the industrial production index, he pointed to its impressive growth of 9.8 per cent, representing two percentage points higher than the yearly target. The manufacturing setor posted the highest growth at 10.6 per cent.

Integration into the global economy was a highlight of 2015. Viet Nam signed FTAs with the Eurasian Economic Union and South Korea, while concluding negotiations of the Trans-Pacific Partnership agreement and an FTA with the European Union. Consequently, Viet Nam has entered into FTAs with 55 economies worldwide, including 17 out of 20 G20 countries and all seven G7 countries.

Monetary policies must pay attention to inflation rates

Experts have said any adjustments in monetary policies should be carefully considered with great attention being given to inflation, as low inflation will create room for interest rate cuts.

Updates of the General Statistics Office revealed that the average increase of the consumer price index (CPI) in 2015 was 0.05 per cent per month, the lowest in 14 years.

The CPI this year showed a 0.63 per cent increase compared to the 2014 average, much lower than the government's five per cent target.

Economist Can Van Luc said low inflation would contribute to macroeconomic stability and create room for fiscal and monetary policies, such as increasing the money supply and public investments.

As Viet Nam was an emerging economy, the inflation rate could hardly be maintained at a low level of less one per cent next year, Luc said, adding that no significant rises were, however, expected due to the government's controlling measures.

Inflation cannot be ignored in management policies, because of the possibility of a recovery in oil prices, coupled with planned increases in healthcare and education fees.

Luc said policy coordination should be boosted, policy consistency improved and monetary policies be made more flexible.

Luc said further interest rate cuts were possible, but no huge cuts were expected.

Deputy Chairman of the National Financial Supervisory Committee Truong Van Phuoc said the monetary policies during the past five years contributed to the country's economic recovery and helped to bring down inflation from more than 18 per cent in 2011.

On the sidelines of the State Bank of Viet Nam's conference last week, Deputy Governor Nguyen Thi Hong said monetary policies in 2016 would not ignore inflation, even though the inflation rate was low.

She said management agencies should boost coordination in forming policies to ensure consistency as well as to fulfil the government's targets.

Interest rates were at low levels in 2015, with deposit rates cut by 0.2 to 0.5 per cent, but confidence in the Vietnamese dong improved, while loan rates fell by about 50 per cent compared to the end of 2011, Hong said.

Cooking gas price plunges

The retail price of a 12kg canister of cooking gas in HCM City dropped sharply by VND31,000 (US$1.38) yesterday morning, or VND20,000 ($0.9) lower than the same period last year.

The major gas distributors in the southern region are now selling 12kg cooking gas canisters for VND275,000 ($12.20) to VND280,000 ($12.40) after they announced the price cut on Thursday.

Head of Saigon Petro Company's Trade Department Tran Van Phuc said the reduction followed the fall in world gas prices by $100 to $367 per tonne for January 2016.

Over the last four months, the price of cooking gas kept rising with an average increase of VND13,000 ($0.58) per month.

Last year, the price of cooking gas was revised 12 times, including five price hikes.

Mining Chemical gains 77 pct share of industrial explosive market

The Mining Chemical Industry Company under the Vietnam National Coal and Mineral Industries Group (Vinaconmin) has claimed 77 percent of the industrial explosive material market in recent years.

The company’s dynamite production accounts for 50 percent of the country’s output.

The company has developed several new services including new explosive products , technical consultation and logistics services for the oil and gas sector.

The unit has also expanded industrial explosive material and raw material exports to foreign markets such as Laos, Cambodia and Malaysia.

From 2016 to 2020, the company will continue to coordinate with relevant authorities to monitor safety, manage industrial explosive material storage and train personnel.-

Plastic enterprises look towards integration

Plastic businesses are planning to invest in production lines and improving product quality as the industry is forecast to face many challenges when the ASEAN Economic Community (AEC) is formed.

Director of the Tien Phong Plastic Company Nguyen Viet Cuong said that seeking quality material resources is now the biggest difficulty facing local plastic producers, adding they had to spend a huge sum importing materials from foreign countries.

In order to compete with products from ASEAN and other countries, domestic enterprises should invest in upgrading production lines, diversifying designs, improving governance capacity and expanding distribution channels, he suggested.

However, Cuong warned that foreign companies, including those from Thailand, may take over major local businesses, forcing small and medium ones to work for them.

Domestic retailers urged for better links

Domestic enterprises in the retail industry should strengthen their connections to take better advantages of resources and increase their competitiveness over foreign investors, Chairman of the Hanoi Supermarket Association Pham Vinh Phu said.

According to him, Vietnamese retailers are vulnerable to integration because of their lack of business strategies and weak management. Some 90 percent of Vietnamese supermarket executives haven’t been trained in retail skills.

He called for Government incentives in terms of finance, land and policy to help enhance domestic retail enterprises’ competitiveness.

Phu also said the production industry plays a significant role in the development of the retail sector, adding that Vietnamese products would be no match for their foreign rivals with an inefficient, poor quality and slow production process.

Sharing Phu’s view on the need for Government assistance, Le Thi Thanh Tam, Deputy General Director of the Saigon Food Joint Stock Company, pointed to the fact that the majority of domestic retailers are small-and medium-sized enterprises, even super-small ones with weak financial capability and poor experience in production, marketing and distribution.

The Government should provide more support for domestic enterprises to develop new products and invest more in product designs in order to compete with foreign enterprises, she said.

Meanwhile, Yukio Konishi, General Director of AEON Mall Vietnam, highlighted the potential of Vietnam’s restaurant and recreation market thanks to its young population.

He expressed his belief that his company can compete with other first-come foreign investors and domestic enterprises thanks to its rich experience, good management ability and high quality and reasonably priced products.

Vietnam and Japan will both join the Trans Pacific Partnership (TPP), which will present huge opportunities for the two nations to boost trade cooperation, Yukio Konishi said.

Ports busy with cargos and containers on first day of 2016

Ports across the country were busy welcoming the first cargo ships and containers of 2016 on January 1.

Cai Lan Port in the northeastern province of Quang Ninh received seven vessels and handled approximately 260,000 tonnes of goods in total on the first day of the year.

At the wharfs operated by Quang Ninh Port JSC, five ships carrying about 150,000 tonnes of commodities were unloaded while 50,000 tonnes of maize and 6,200 tonnes of ore aboard ships from Liberia and Hong Kong were handled by the Cai Lan International Container Terminal Ltd., Co. (CICT).

In 2015, ports in Cai Lan area welcomed hundreds of ships and handled more than 11.5 million tonnes of goods. They strive to process nearly 13 million tonnes of commodities this year.

According to the provincial Department of Transport, some 275 cruise ships left Tuan Chau Port to take about 4,800 passengers around Ha Long Bay by 12:00 a.m.

In the neighbouring city of Hai Phong, the first batch of iron and steel, over 22,200 tonnes in weigh, was unloaded from Hong Kong’s 185.7-metre XIN QUANG vessel, which arrived at Hai Phong Port on late December 28.

Last year, the port unloaded 32 tonnes of goods, earning 2.5 trillion VND (111.17 million USD) in revenue. It expects to handle more than 35 tonnes of goods for a revenue of 2.7 trillion VND (120 million USD) in 2016.

Meanwhile, nine ships landed at Da Nang Port in the central city of Da Nang the same day, including 700-Teus MIA SCHULTE container ship of Maersk Line from Singapore.

In 2015, Da Nang Port handled 6.4 tonnes of goods and 258,000 TEUs of containers, up 6.5 percent and 15.7 percent year-on-year, respectively. It also welcomed 52,000 visitors and crews from 58 cruise ships.

The port plans to start work on the second phase of Tien Sa Seaport this year. Once operational in early 2018, it will bring the total capacity of Da Nang Port to 10 million tonnes per year.

Gia Lai targets 7.5 percent GRDP growth in 2016

The Central Highlands province of Gia Lai strives to achieve sustainable economic growth in the 2016-2020 period with a Gross Regional Domestic Product (GRDP) growth rate of 7.5 percent in 2016.

To realise the objectives, Gia Lai will continue economic restructuring in combination with changing growth model with the aim to improve quality, efficiency and competitiveness.

The province will also implement agricultural restructuring polices in line with the building of new-style rural areas, focusing on efficiently shifting crop structure and gradually forming large-scale fields.

Over the past five years, the province has attracted as many as 64 investment projects with total registered capital of 15.6 trillion VND (678 million USD), of which, 34 projects have been put into operation.

Especially, the 2nd conference on investment promotion held in Gia Lai has created opportunities for the province’s sustainable economic development, with the State’s investment in upgrading Ho Chi Minh Road, National Roads 19 and 25 and Pleiku airport’s runway.

The province has developed areas specialising in industrial crops with 38,000 hectares of sugarcane, 100,000 hectares of rubber, 79,000 hectares of coffee, and 13,600 hectares of pepper.

Gia Lai has also encouraged concentrated livestock products processing, with a 6.3 trillion VND (273 million USD) cow breeding project operated by the Gia Lai Livestock JSC and a Nutrifood factory producing about 110 million litres of milk per year.

Gia Lai has effectively carried out the national target programme on new-style rural area building.

US – Vietnam’s top trade partner

The US has become Vietnam’s leading trade and investment partner, which has been reflected through impressive trade values between the two countries over recent years.

Bilateral trade has expanded from zero since the day Vietnam and the US normalised their diplomatic ties 20 years ago to 36.3 billion USD in 2014. The figure is expected to hit 40 billion USD in 2015.

According to Deputy Minister of Industry and Trade Tran Tuan Anh, among the free trade agreements Vietnam has engaged in, the Trans-Pacific Partnership (TPP) agreement is expected to afford favourable conditions for Vietnamese exports.

Nguyen Duy Khien, head of the American Market Department under the Ministry of Industry and Trade (MoIT), said Vietnam shipped 30.6 billion USD worth of goods to the US in 2014, up 24 percent against the previous year.

According to the MoIT, Vietnam began to access the US market in 1995. Vietnam’s export turnover to the country reached 800 million USD in 2000 – the year the Vietnam-US Bilateral Trade Agreement was signed.

The US has become Vietnam’s largest importer,purchasing garments, electronic products, footwear, rice and fish from the Southeast Asian nation.

In the sphere of investment, the US ranked seventh among the countries and territories investing in Vietnam with a total direct investment of 10.7 billion USD by June this year.

Vu Duc Giang, President of the Vietnam Textile and Apparel Association, said Vietnam is the world’s fifth largest garment-textile exporter, and the US remains the country’s top market in this field.

However, the garment-textile and footwear sectors are forecast to face difficulties as a result of Vietnam’s TPP membership as the US has initiated the “yarn forward” rule of origin.

In order to benefit from tax breaks, Vietnamese companies must use materials imported from other TPP members, Giang said, noting thiswill be a real challenge for Vietnamese businesses when up to 70 percent of materials they are currently using are purchased from foreign countries, mainly China – a non-TPP member.

Deputy Minister Tran Tuan Anh said the TPP will be an impulse for Vietnam’s economy to gear towards comprehensive renovation, a higher competitive edge and a better business environment.

Anticipating opportunities afforded by the TPP, lots of US businesses have suggested expanding footwear orders with Vietnam, while many others have invested in weaving and dyeing projects in the country.

The trend sparks the hope that the TPP will continue creating a momentum for the two countries’ relationship, he said.

Economists also stressed the need to provide more information about the two countries’ markets and conduct trade promotion activities such as exhibitions, workshops and market surveys.

The US now has more than 720 valid projects in Vietnam. In the first quarter of 2015, US investors poured nearly 68 million USD into eight new projects in the country.

Hanoi’s budget collection valued at 6.85 billion USD

Hanoi collected a total of 155.7 trillion VND (6.85 billion USD) for the state budget as of December 31, exceeding estimates by nearly 10 percent.

Meanwhile, the capital city’s budget spending reached 87.7 trillion VND (3.85 billion USD), according to the Hanoi State Treasury.

To well manage budget collection and spending, the treasury has coordinated with the municipal Departments of Planning and Investment, and Finance in building an inter-sectoral information network on managing investment in capital construction.

It has successfully applied an inter-bank payment system that helps speed up budget collection process.

A representative from the Ministry of Finance said that the city treasury’s successful performance contributes to ensuring the nation’s budget collection and spending. Hanoi’s budget collection accounts for one fourth of the nation’s total.

Export expected to grow 10 percent in 2016

Vietnam targets ten percent export growth in 2016, said Deputy Minister of Industry and Trade Tran Tuan Anh during a teleconference on December 31.

This means revenue from outbound shipments will reach 178 billion USD next year, while trade deficit will be kept at under 5 percent.

It plans to boost exports of processed/manufactured products, key staples and goods with high added value or notable earnings, while restricting the import of luxuries and commodities that can be made domestically.

According to the deputy minister, in 2015, Vietnam shipped approximately 162.4 billion USD worth of products overseas, an annual increase of 8.1 percent. The processing-manufacturing sector and foreign-invested enterprises contributed significantly to the revenue growth.

Meanwhile, falling price and quantity reduction of agricultural produce and minerals have negatively affected 2015’s export turnover.

The country imported 165.6 billion USD worth of commodities, up 12 percent from 2014.

A major part of imports are production materials, reflecting the considerable proportion of outsourcing in the domestic economy and the reliance on foreign suppliers, which has resulted in increasing production costs and inferior competitiveness of locally made products.

Trade deficit was well controlled at two percent of export revenue equaling 3.17 billion USD.

The Ministry of Industry and Trade (MoIT) also aims for a growth rate of between 9-10 percent in industrial production index and a 12 percent increase in retails and services in 2016.

Reviewing the industrial production index, Deputy Minister Anh pointed to its impressive growth of 9.8 percent, representing two percentage points higher than the yearly target. The processed/manufactured unit posted the highest growth at 10.6 percent.

Integration into the global economy was a highlight of 2015. Vietnam signed free trade agreements (FTAs) with the Eurasian Economic Union and the Republic of Korea while concluding negotiations of the Trans-Pacific Partnership agreement and an FTA with the European Union. Consequently, Vietnam has entered into FTAs with 55 economies worldwide, including 17 out of 20 G20 countries and all seven G7 countries.

Chaired the function, Prime Minister Nguyen Tan Dung urged the trade-industry sector to make full use of advantages and opportunities brought about by the global economic integration in order to expand export market.

At the same time, he underscored the domestic market which has great potential with more than 90 million people.

He also requested the MoIT to continue with restructuring for improved quality and competitiveness of the sector, with special attention paid to State-owned enterprises, among other tasks.

Viglacera to produce construction materials in Cuba

Viglacera Corporation will set up a joint venture (JV) with Cuba’s Geicon Company to produce sanitary ware and ceramic wall and floor tiles in San Jose and Santa Cruz in Cuba in 2016.

A memorandum of understanding (MOU) on the establishment of the JV has been signed by Geicon Director General, Cesar Revuelta Mayolina and Viglacera counterpart, Nguyen Anh Tuan in Cuba.

Earlier in 2014, Viglacera sent two experts delegations to Cuba to assist its construction materials production plants. Meanwhile, Cuban officials from Cuban Ministry of Foreign trade and Investment and Ministry of Construction visited and worked with Viglacera leaders.

In October 2014, the two sides signed the MOU on the establishment of the JV. In April 2015, they signed another MOU on the list of procedures to apply for a license to set up the joint venture.

US$1 billion remittances go to real estates in HCM City

Overseas Vietnamese (OVs) remittances to HCM City hit US$4.76 billion in the first 11 months of this year, said Nguyen Hoang Minh, deputy director of the State Bank of Vietnam (SBV), HCM City branch.

Hoang said the amount transferred to real estates accounted for 21.6% (equal to US$1 billion), up 0.8% against the corresponding period last year.

OVs remittances to the city are estimated at US$5.5 billion this year. If the rate of 21.6% is maintained, the amount transferred to real estate will reach US$1.2 billion.

Experts forecast that the money transferred to real estates will increase in the coming time when the market becomes bustling. Many OVs in Australia, the US and the UK want to return and live in Vietnam when they get older. Besides, the revised Housing Law also facilitates foreigners to buy houses in Vietnam.

Banking restructuring scheme fruitful

Vietnam’s banking restructuring scheme, launched by the central bank four years ago, has achieved almost all of its important objectives, a senior official of the State Bank of Vietnam (SBV) said at a recent press conference in Hanoi.

Solutions adopted to reduce bad debts have taken effect, helping significantly improve credit quality and lower the ratio of non-performing loans to total outstanding loans, SBV Deputy Governor Nguyen Thi Hong said on Thursday last week.

The conference was held to review the country’s monetary policy and banking operations in 2015 and map out plans and targets for 2016.

According to data compiled by Vietnam’s central bank, about 99.6% of banks’ bad debts had been handled as of November 30.

As a result, bad debt in the entire banking system was brought down to 2.72%, meeting the target of cutting the rate to less than three percent by the end of 2015, the deputy governor said.

The application of the new standards for the classification of debts, starting in the first quarter of 2015, was also fruitful, putting an end to the system’s two different data types for bad debt, one reported by lending institutions and the other complied by the central bank, Deputy Governor Hong added.

She said that credit growth is estimated to be 18% this year, and the rate is projected to hit 18%-20% next year.

The local banking system has become more stable, as total deposits rose nearly 13.6% year on year, offering sufficient credit for lending to the national economy, even though deposit interest rates fell slightly, Hong said.

As of December 21, credit growth had seen a 17.17% spike, outperforming that in the same stage recorded in 2011-14.

Deputy Governor Hong said loans had been channeled into many sectors considered priorities by the government early this year, especially the high-tech industry.

In 2015, the central bank has maintained stable policy rates, including interest caps for savings in the Vietnamese dong and the US dollar, she added.

Meanwhile, lending interest dropped 0.3-0.5 percentage points compared to last year, while deposit rates plummeted 0.2-0.5 percentage points year on year.

The SBV official also said foreign exchange and currency markets have continued to be stable with enhanced confidence in the Vietnamese dong and the ‘dollarization’ of the national economy continually declining.

These results showed that 2015 has been a year of success in monetary policy management, as annual inflation has been kept at below one percent, marking the longest inflation stability in a decade, while economic growth reached over 6.5%, the highest in the last five years, she said.

The central bank will leverage all of its policy tools flexibly to keep inflation below 5%, ensuring macroeconomic stability and contributing to economic growth at 6.7% in 2016, Hong added.

Thai investments in ASEAN countries increase

Thailand invested 64.75 billion THB (about US$1.9 billion) into other ASEAN nations, accounting for 27% of the total of 242.9 billion THB channelled overseas from January to September this year, according to the Bank of Thailand.

The central bank’s data shows that net investment outflows from Thailand to other ASEAN countries have been constantly increasing over the past four years.

The ASEAN Economic Community, scheduled to take shape on December 31, 2015, promises free flow of trade, investment and labour. Setting up Thailand’s factories in the regional countries will be cost-saving, especially in terms of labour expenses.

Big Thai corporate names like Amata, Siam Cement Group, and PTT Group are among the firms making forays into other ASEAN nations that boast fast economic growth, low labour cost and rich natural resources such as Vietnam, Laos, Myanmar and Cambodia.

Thai investors are also investing in the retail industries in ASEAN countries to pave the way for Thai goods into those markets, taking advantage of zero percent tariffs.

In early 2015, the Central Group spent some US$100 million on buying 49% of the charter capital of the Nguyen Kim company in Vietnam with the intention to turn the firm into a leading consumer electronics retailer in Southeast Asia.

ThaiBev, a beverage company, also indirectly became the biggest foreign shareholder of Vietnam’s Vinamilk diary company after gaining control of Singapore’s largest beverage firm, Fraser&Neave.

Thailand’s small- and medium-sized businesses such as Siang Pure Oil Group, MK Restaurant and Coca Holding International are also making inroads into the regional markets by opening branches there.

Nhi Thien Duong Bridge set for upgrade

The HCM City transport department has approved the Nhi Thien Duong Bridge upgrade project in district 8 at a cost of VND164 billion (US$7.28 million).

At the age of 90, the 1-km long Nhi Thien Duong Bridge is the oldest and most degraded in HCM City. The bridge, crossing over Kenh Doi in district 8, links Cho Lon with Mekong Delta provinces through National Road No 50.

It was built in 1925 and designed as a European style bridge with an under curved dome shape.

In 2003, to meet with increasing traffic demand, a new bridge was built parallel with the old one. Now the bridge will be rebuilt with a length of 161m and a width of 12m.

The project is slated to be completed in 2017.

Also, the Can Gio Tourism and Urban Development Joint Stock Company has submitted plans to the municipal People's Committee for an upgrade of Rung Sac route in Can Gio District, with investment of VND2.2 trillion ($97 million).

The company will invest in the upgrade and the city will pay later through land in the Can Gio sea-encroaching urban project.

The route was completed early 2011 after 9 years of construction at a cost of VND1.5 trillion ($66.6 million). The route has promoted development for Can Gio District.

However, the route has been degraded and would limit development.

The company has recently suggested building Can Gio Bride to link the district with District 7 at a cost of VND5 trillion ($222.2 million) without ground clearance and compensation expenditure.

Soon, Can Gio District will be linked with Nha Be and Nhon Trach districts, Dong Nai Province by Binh Khanh and Phuoc Khanh bridges respectively within 57-km Ben Luc-Long Thanh Express project.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR