GDP grows significantly: HSBC

Vietnam’s GPD will continue to grow despite low credit growth, according to recent HSBC’s report on Vietnam at a glance.

HSBC forecast that credit growth will be 10%, lower than the State Bank of Vietnam (SBV)’s goal for 12-14%. Since early this year, credit has expanded 3.6% from the end of 2013 and about 11% on year.

HSBC explained a paradox regarding Vietnam’s still sticky GDP growth despite weak credit expansion. Manufacturing is one of the reasons why the economy has been growing at a 5% to 5.5% in recent years.

By July 2014, exports are holding the economy up, expanding 14.1%. The manufacturing sector is expanding solidly this year, albeit with some deceleration. Since December, HSBC manufacturing PMI has been above 50. With sluggish credit growth, inflation will remain contained. The SBV will keep the open market operation (OMO) rate steady at 5% for the rest of the year.

The recent uptick of employment suggests that producers are expecting a rebounding US and China to boost demand for Vietnam-manufactured goods.

HSBC reported that the bounce in external demand, especially in quarter four 2014, should boost the manufacturing sector further, HSBC also forecast continued growth next year, as new FDI investment begins to commence operations as well as a rebounding of the global environment.

HSBC predict that inflation with the exception of seasonal fluctuations resulting from service price increases and weather events affecting food supply and global oil prices, too, should hover around the 4.5% to 6.5% range.

Shrimp producers face more scrutiny for chemical usage

The Prime Minister has directed concerned ministries and agencies to monitor shrimp production and trade more strictly.

Under Directive 20/CT-TTg issued late last week, the PM asked the chairpersons of coastal provinces and cities with large seafood production and trading activities, such as Ca Mau, Bac Lieu, Soc Trang and Kien Giang, to increase the supervision and inspection of seafood production, processing and trade to prevent the contamination of the products with banned chemical residues.

Those violating the rules will be strictly punished in accordance with a Government Decree, under which the production and business licences can be withdrawn and the cases can be made public through mass media.

The PM also entrusted the Ministry of Agriculture and Rural Development and the ministers of Public Security, Industry and Trade and Finance to draft and submit quickly a project to improve control over and prevent the use of banned chemicals in shrimp production and trade.

Stricter punishment might be imposed on such illegal activities as the PM has asked the relevant ministries to study whether the use of banned chemicals in shrimp production and trade could be added to the list of new crimes in the Penal Code.

The Vietnam Association of Seafood Exporters and Producers (VASEP) has also been instructed to spread awareness among enterprises and shrimp farmers, and to ask them to make a commitment on not using banned chemicals in shrimp production and trade.

Shrimp is the key export product of the country's seafood industry. The seafood export value in the first half of this year grew strongly due to a sharp increase in shrimp and prawn exports. According to the Ministry of Agriculture and Rural Development, the country's seafood export revenue rose 24.2% to touch US$3.45 billion, of which 48% to 49% came from shrimp and prawn exports.

VASEP said there was a strong demand for shrimps and prawns in the US, the EU, Japan, the Republic of Korea and China.

The total export value of seafood this year is expected to reach US$6.9 billion, which includes US$3.5 billion from shrimp and prawn exports, similar to that of 2013.

Dong Nai revokes licences of delayed investment projects

In the first seven months of this year, the southern province of Dong Nai revoked investment licences from eight foreign direct investment (FDI) projects with a total registered capital of US$86 million.

Deputy Director of the Management Board of Dong Nai’s Industrial Zone Authority Mai Van Nhon confirmed that all of the projects had been delayed for more than 12 months and failed to resume despite the authority’s warnings.

“We are considering revoking the investment licences from another 47 delayed projects ” he said.

Some delayed projects lack even the adequate financing to build offices, which has made it difficult for the authority to contact their representatives.

One example is the Dinh Quan Industrial Zone-based Kyung Rim Vina Ltd. Although it signed an initial contract with an infrastructure firm, the company returned its land and stopped its operations as of May 2014, but hasn’t yet closed its tax code.

According to the Management Board of Dong Nai’s Industrial Zones, many FDI firms failed to pay tax and social insurance. For example, Nhon Trach 1-based C&H Vietnam Ltd shut down, but still had a tax code and owing US$38,000 in social insurance.

In 2013, Dong Nai revoked investment licences from 17 of 30 non-operating FDI firms. Dong Nai’s investment policy is to fully support productive projects that make contributions to the provincial budget and create jobs for local people, Nhon underscored.

Bac Lieu takes in 21 investment projects in seven months

The southern province of Bac Lieu took in 21 new projects in the past seven months, including the one on making apparels invested by a Republic of Korea investor.

The figure raised the number of licensed investment projects in the locality so far to 40, including 15 foreign-invested ones, with a combined registered investment capital of US$873 million.

Between now and this year’s end, seven licensed projects are expected to get off the ground.

Besides offering incentives as a draw to investors, Bac Lieu has upgraded its transport network, particularly, Cao Van Lau, Gia Rai – Ganh Hao and Xom Lung – Cai Cung roads.

It has also ramped up electrical and irrigational infrastructure in aquaculture areas, built fishing ports, shelter areas, shrimp and fish breeding facilities as well.

On the strength of rice supply and aquaculture, Bac Lieu also boasts estuaries of Ganh Hao, Cai Cung, Nha Mai and a vast fishing grounds sprawling over 40,000 square kilometres, which enable it to develop a sea-based economy for its growth.

For past years, the province has launched a range of eco-friendly tourist services and built economic and cultural establishments.

Bac Lieu is calling for investment in fishing logistics services, expansion of Ganh Hao fishing port and a seafood processing plant.

AEON expands its presence into Binh Duong

Japanese owned Aeonmall Vietnam Co, Ltd has received the green light from Binh Duong province to proceed with its expansion plans and the grand opening of its Aeon Binh Duong Canary Mall in November 2014.

Speaking of its expansion plans, Yukio Konishi, General Director said the company has done business in Hanoi and HCM city since 2009.

Mr Konishi said that the Aeon Binh Duong Canary Mallwill provide standard products and services, generate thousands of jobs, and introduce more domestic goods to Aeon shopping centres and supermarkets.

The Aeon Binh Duong mall has been constructed in the Vietnam-Singapore Industrial Park (VSIP) in Thuan An commune with investment capital of US$95 million on an area spanning 75,000 square metres. After four years of operations in Vietnam, Aeonmall Vietnam Co, Ltd and AEON Co, Ltd have received investment licenses to construct shopping malls capitalised at US$512 million, most notably was the opening of the AEON-Tan Phu Celadon mall in January 2014.

National committee: aggregate demand improved but still low

Vietnam’s core inflation which has continuingly been falling since October of 2013 has showed a slow improvement in aggregate demand, according to the National Financial Supervisory Committee (NFSC).

In its recent report on the economic situation in the first seven months of this year and in July alone, the committee said that core inflation in July was estimated at 3.6%, much lower than the overall inflation rate of 4.9% and also lower than the core inflation rate of 4.2% from the same period last year.

The committee also identified that aggregate demand was slowly improving for both consumption and investment.

Specifically, for consumption, even though the total retail sales and consumption services revenue was higher than the same period in 2013 but saw not much improvement. Meanwhile, the volume of cargo during the January-July period increase by 4.8%, much lower versus the same period last year (13.7%).

For investment, according to the NFSC’s estimate, during the first half of 2014 private investment was only equivalent to 10.3% of GDP, lower than the figure of 11.1% for the same period in the 2013. Foreign direct investment in the first seven months rose by 2.3% year on year, lower than the 6.4% rise last year.

To achieve the economic growth target of 5.8% for 2014, in a context of well-controlled inflation, the committee recommended improving management and offering support policies to aggregate demand.

Nationwide contest launched to find useful inventions

The Ministry of Science of Technology (MOST) has launched a contest in search of new inventions that can be widely applied for practical needs in daily life as well as inventions which will spur socio-economic development.

The contest is being organised in partnership with the World Intellectual Property Organisation, science agencies of Hanoi, Da Nang and Ho Chi Minh City, as well as the Intellectual Property and Creativity Magazine.

All Vietnamese citizens who have developed technical inventions after December 31, 2008 and did not take part in the 2013 contest are eligible for the 2014 invention contest. Submissions will be received up until September 30, 2014.

MOST Deputy Minister Tran Van Tung said in a press briefing on August 4 that the contest is an opportunity for inventors to promote their technical creations and to establish a business with potential investors.

Last year, the contest organisers received 146 applications in a wide range of areas, including mechanics, automation, material science, environmental technology and biological technology, many of which have been successfully commercialised both at home and abroad.

An award ceremony for finalists of the contest is scheduled for November this year.

Huge capital needed for social housing development in Hanoi

Hanoi currently has 34 social housing projects for students, factory workers and low-income people but they may fall behind schedule or face suspension due to financial constraints, Hanoi’s Department of Construction said last week.

The department attributed the slow progress of six projects for students to the lack of capital. For example, Vietnam Forestry University is running short of VND60 billion while Hanoi National University of Education needs around VND33.64 billion, according to Vietnam News Agency.

Meanwhile, some projects for workers have gone into operation while others are facing financial distress. An apartment building in Hanoi’s Dong Anh District has insufficient infrastructure and 2,700 units unoccupied while a three-block project in Kim Chung urban area has run into trouble over an investment capital shortfall and slow site clearance.

As for projects intended for low-income people, most contractors have pledged to complete construction on time but a few of them have lagged, the construction department was quoted by the news agency as saying at the meeting. A project of Hanoi Construction Joint Stock Company No.3 is a case in point; it is more than two years behind schedule and is still seeking approval.

Vice chairman Nguyen Ngoc Tuan of Hanoi People’s Committee told relevant departments to speed up capital allocations for those projects.

As for the projects behind schedule, he asked investors to complete their projects on time to meet housing demand of those in need.

Coffee exports show big potential

With its huge export potential, Viet Nam could become the world's leading coffee supplier within a few years if it could overcome its shortcomings, trade experts have said.

The latest report from the Ministry of Agriculture and Rural Development has revealed that the country had exported 1.12 million tonnes of coffee over the past seven months and generated a turnover of US$2.31 billion.

The exports represented a year-on-year increase of 26.9 per cent in volume and 21.9 per cent in value, the report said, adding that Germany and the US remained the two biggest importers of Vietnamese coffee.

Coffee was now one of the nation's most important agricultural products and the local coffee sector mainly focused on export with quantity of 95 per cent of its output, according to the National Export Potential Assessment Report, which was released by the Trade Promotion Agency late last week.

Despite enjoying such advantages as a favourable climate, low production costs and a bumper coffee crop, the quality of Vietnamese coffee products remained low due to outdated harvesting technology and poor processing facilities.

Lack of brand recognition and the limited marketing skills of exporters were some of the other problems, resulting in lower export prices of Vietnamese coffee as compared with the world's average.

Nevertheless, thanks to a firm foothold in the global market, Viet Nam still had great potential for improving its coffee quality and recording higher export turnover, the report showed.

In order to utilise this potential effectively, the coffee sector needed to improve its production chain and distribution networks, from producing, processing to marketing processes, in order to increase its export value, experts suggested.

Nguyen Thi Thu Hang, senior technical consultant at the Export Potential Assessment (EPA), emphasised on the importance of improving product quality with a focus on investing in research, post-harvests, preservation and processing technology.

Besides applying sustainable standards for coffee production, it was also necessary for the sector to provide hi-quality products for niche markets in spite of low consumption, she said.

Ngo Quang My, another consultant at EPA, called on the State's support policies in producing, processing and enhancing the quality as well as innovating technology and marketing Vietnamese coffee products.

He also suggested that firms involved in the sector should forge closer links and accelerate their co-operation.

EPA is first major activity of the four-year "Decentralised Trade Support Services for Strengthening the International Competitiveness of Vietnamese Small and Medium-sized Enterprises" programme, being implemented nationally by the Trade Promotion Agency.

MARD floats plan to boost tuna value

The Ministry of Agriculture and Rural Development (MARD) recently held a workshop on how to develop a tuna value chain in the central coastal province of Khanh Hoa.

According to the ministry, this would increase the value of products and improve living standards of fishermen.

Tuna was sold to factories with cold storage facilities at VND73,000 (US$3.42) per kilogramme in the Phu Yen province while tuna processed as Sashimi had been exported to Japan at VND195,000 ($9.15) per kilogramme, conference participants said.

Often, fishermen do not pay attention to investing in processing technology because they can easily sell their tuna by total weight to local buyers without strict regulations related to quality control, health and sanitary guarantees as required in the overseas markets.

Creating a whole chain of fish production is a matter of concern in Viet Nam. It is said that while there are many drawbacks such as planning, exploitation of technology, preservation and marketing in exploiting tuna, one can develop effective and entire chains of tuna production.

"The value chain can't be cut off. It must be managed by MARD and provincial people's committees so that it can operate smoothly," said Vu Dinh Dap, Chairman of Viet Nam Tuna Association.

The country now has more than 3,500 tuna fishing ships with 35,000 labourers.

According to Minister of MARD Cao Duc Phat, in order to benefit from the value chain, Viet Nam has to clarify matters like what kind of ship would be good for catching tuna or what fishing techniques need to be used. And tuna business needs to take fishermen's interests as their core goal.

Minister Phat said that providing fishermen with better equipment and technology would help them improve their living standards.

To produce tuna in the value chain, the development of a modern fishing fleet, combined with a marketing strategy and the construction of logistic fisheries services should be implemented together, added Phat.

Petrolimex announces prices for bio-fuel blends in Quang Ngai

Bio-fuel E5 RON 92 is priced between VND25,310 (US$1.2) and VND25,810 ($1.22) per litre in the central Quang Ngai Province as of last Friday, according to the Viet Nam National Petroleum Group (Petrolimex).

E5 RON 92, which is made of unleaded gasoline and 4 to 5 per cent ethanol, will replace the traditional fuel Mogas 92.

All petrol stations in Petrolimex Quang Ngai's distribution network will price E5 RON 92 at VND25,310. Meanwhile, areas which are located far away from the province's central area will charge the maximum rate of VND25,810 for E5 RON 92.

Quang Ngai was the first province in Viet Nam to implement the Government's road map for applying ratios while blending biofuels with traditional fuels nationwide. Last Friday, it received the biofuel from the oil tank of the Binh Son Refining and Petrochemical Company Ltd, (BSR) and then transported it to the petrol stations and agents in the province.

According to the BRS's Deputy Director Tran Ngoc Nguyen, the company's Dung Quat Oil Refinery will ensure the supply of E5 RON 92 for the central region of Viet Nam.

Nguyen said the refinery's oil tanks are capable of holding 200,000 cubic metres of oil per year, half of which is E5 RON 92.

According to a decision issued by the provincial People's Committee on June 16, 2014, 81 per cent of the petrol stations in the province will sell E5 RON 92 from last Friday.

Kien Giang sets to harvest 52,000 tonnes of shrimp this year

The Mekong Delta province of Kien Giang looks sets to achieve its annual target of 52,000 tonnes of shrimp output this year with 26,500 tonnes harvested so far.

The figure, equivalent to 60 percent of the yearly plan, represented an increase of 15 percent year-on-year.

Director of the provincial Department of Agriculture and Rural Development Mai Anh Nhin said the yearly goal is within reach as there is still room to expand the shrimp farming area while the weather is expected to be favourable in the latter half of the year.

According to the department’s statistics, the locality has 89,314 hectares of shrimp farming, 314 ha higher than its annual target, and the area is expected to further expand.

The provincial authorities plan to accelerate the construction of infrastructure projects to serve the development of concentrated farming zones, while intensifying the management of water environment in shrimp farms.

The province will also create favourable conditions for businesses to access capital sources.

Kien Giang emerged as an economic spotlight on the Mekong Delta region in 2013, with economic growth rate hitting 9.4 percent, ranking fourth among the 13 provinces and city in the delta.

Shrimp farming was the main driving force behind the development of the province’s socio–economy.

The province has set a target of earning 175 million USD from exporting aquatic products in 2014, up 17 million USD against the value of a year earlier.-

Ca Mau: unfavourable weather causes serious economic loss

Heavy rain, whirlwind and flood tides in the southern province of Ca Mau over the past several months have caused serious impacts on agricultural production and threaten safety of local people.

According to the provincial Department of Agriculture and Rural Development, in July alone 12km of sea dikes were seriously damaged by rains, while nearly 1,000 ha of shrimp farming area were inundated, with total losses estimated at more than 8 billion VND. In addition, 20,000 km of river embankments were eroded, forcing dozens of houses to be relocated to safer areas.

According to the Central Hydro-meteorological Forecasting Centre, this year sees higher-than-average rainfalls and floodtides due to climate change.

To minimise losses, the provincial Steering Committee for Flood and Storm Prevention and Control has intensified communication works to update local people on the development of weather, thus helping them quickly respond to any weather situations.

The committee also pays heed to consolidating dyke system to protect agricultural land areas against flood, while drafting plans to evacuate households residing in coastal areas and zones vulnerable to flood and landslide.

HCM City to host support industry mega-expo

A mega support industry event with three exhibitions is slated to be held in Ho Chi Minh City in October, promising to offer opportunities for local producers to update technologies as well as their management capacities.

Two exhibitions, Metalex Vietnam and Nepcon Vietnam, hosted by the Thailand-based Reed Tradex Company, will feature the latest machine tools and metalworking technologies and assembly, as well as measurement and testing technologies for electronics manufacturing.

The number of registered exhibitors is expected to increase by 20 percent over last year's shows, with many national pavilions including Japan, Singapore, Taiwan, Korea, Malaysia, Germany, the UK and Thailand, the company said.

The other exhibition "Business Alliance for Supporting Industry 2014", organised by the Japan External Trade Organisation (JETRO) in HCM City and the HCM City Investment and Trade Promotion Centre, will enable Vietnamese parts producers to meet with Japanese producers to seek business opportunities.

To take place at the Saigon Exhibition and Convention Centre from October 9-11, visitors will also be able to gain new knowledge and networking opportunities through seminars and other activities during the three shows.

The ASEAN Economic Community, which is set to come into existence next year, brings both opportunities and challenges for Vietnamese producers, said Duangdej Yuaikwarmdee, Deputy Managing Director of Reed Tradex.

To remain competitive, local companies must invest in modern technologies, he said.-

Can Tho aims for 1.45 million tonnes of rice in 2014

Authorities of the Mekong Delta city of Can Tho are making every effort for a rice production of 1.45 million tonnes this year, up 8 percent against the volume made a year earlier.

To reach the goal, they are striving for an output of 317,000 tonnes in the upcoming spring-winter crop.

According to the municipal Department of Agriculture and Rural Development, the locality has planted over 61,800 ha in the crop, up 11,000 ha compared to the same period last year. The acreage mainly concentrates in the districts of Vinh Thanh, Co Do, and Thoi Lai with a total area of 40,000 ha, accounting for 65 percent of the rice area of the locality.

Pham Van Quynh, director of the department said in these districts, 132 field embankments were reinforced and 56 km of internal ditches were dredged to prevent flooding that could adversely affect rice production.

Water drainage systems in several districts were also reinforced for the purpose, he added.

In addition, the municipal Department of Plant Protection has supplied bio-pesticides to local farmers and directed them to use to protect the environment and their paddies as well.

Can Tho considers rice production a key foreign currency earner ensuring a steady income for its farmers.

The city has set to sell 1 million tonnes of rice abroad in 2014, up nearly 100,000 tonnes from last year, for earnings of over 516 million USD.

In 2013, it raked in nearly 500 million USD from rice export, accounting for 30 percent of the city’s total export value of 1.5 billion USD.

Ministry seeks ways to secure new rice export contracts

The Ministry of Industry and Trade has urged Vietnamese rice exporters to promptly manage the volume of rice exports and stockpile, thus accelerating the signing of new contracts by the year-end.

The request was made in the context that the amount of rice exports through sub-border gates in northern provinces have been out of control.

Given this situation, the ministry has partnered with customs office and related agencies to inspect the cross-border export of rice.

The ministry has also coordinated with the Ministry of Agriculture and Rural Development, the Vietnam Food Association and food companies to review the rice supply as well as signed rice export contracts. Then it will propose rice export scheme in the time to come.

In the first seven months of this year, Vietnam exported about 3.861 tonnes of rice, representing decreases of 7.9 percent in volume and 4.8 percent in value over the same period last year.

In June and July, rice exports dropped about 30 million USD each month compared with that in previous months.

To date this year, domestic rice exporters have signed contracts to sell 5.3 million tonnes of rice.

For the rest of the five months this year, domestic rice businesses will have to win contracts to export more than 1 million tonnes of rice to meet the 2014 export target of between 6.2 and 6.5 million tonnes of rice.

Modernising agriculture: opportunities and solutions

Vietnam’s agriculture is entering a new phase to meet requirements in the process of international economic integration. Therefore, applying high-tech to improve efficiency, competitiveness and product quality and meet consumer demand is an urgent task, the Vietnam Economic News reported on August 1.

According to incomplete statistics, the country currently has 29 high-tech agricultural zones in 12 provinces and cities. These agricultural zones have formed development models such as safe vegetable production and flower and ornamental plant growing in Ho Chi Minh City, Bac Ninh and Lam Dong and mushroom production in Vinh Phuc province.

In addition to development models, agricultural zones have also established specialised production areas, dairy processing facilities in Hanoi, Nghe An province and Ho Chi Minh City and tea growing areas based on the Chinese Taipei technology in Thai Nguyen and Lam Dong provinces.

In particular, agricultural zones have actively applied new technology such as greenhouse, net house, nursery and cooling warehouse, contributing to improving productivity and stabilizing prices.

Director of Agricultural and Rural Department under the Central Economics Commission Nguyen Van Tien said that research results and high-tech applications had made important contributions to productivity growth in recent years. However, operations of high-tech agricultural zones have remained limited due to the lack of support mechanisms.

“The selection of models, products and technology has remained unsuitable and costs have remained high, leading to low efficiency. In addition, some high-tech agricultural zones in Hai Phong city and Hanoi have not brought desired efficiency,” Nguyen Van Tien was quoted as saying.

Businesses should consider not only investing in the application of advanced technology into practical production but also promoting strengths in terms of land resources and natural conditions.

Deputy General Director of Agrivina Co., Ltd. Nguyen Van Bao said that although Vietnam has become a member of the International Union for the Protection of New Varieties of Plants (UPOV) since 2006, some businesses and farmers in Lam Dong province have used unoriginal seeds, leading to unfair competition between businesses.

Developing high-tech agriculture in the future should focus on core objectives such as seed selection and the number of businesses and services participating in high-tech agriculture.

Deputy Head of Science, Technology and Environment Department under the Ministry of Agriculture and Rural Development Nguyen Tan Hinh said that the country would strongly develop high-tech agriculture with a focus on the number of businesses and production areas, contributing to increasing high-tech agricultural production value to 10-15 percent of total agricultural production value.

Akita firms explore Binh Duong business climate

Businesses from Akita prefecture, northern Japan, on August 1 toured the southern province of Binh Duong to inquire into investment climate there.

Professor Umehara Katsuhiko from the East Asia research centre said he was surprised at the local rapid growth, with a joint venture between the Becamex-Binh Duong company and Japan’s Tokyu Corporation as a core in the development of the Binh Duong New City project.

He said he will introduce Vietnam, especially Binh Duong province where Japanese investors run a number of projects, to Akita businesses in order to increase trade ties between the two localities in the coming time.

Chairman of the provincial People’s Committee Le Thanh Cung said local authorities have taken heed to foreign businesses, including those from Japan, to help them overcome difficulties, while facilitating their operation.

Binh Duong is home to over 2,300 foreign investment projects totalling 19.8 billion USD run by nearly 40 nations and territories. Japan takes the lead with 4.7 billion USD invested in more than 220 projects

The province has also received official development assistance from Japan for water drainage system and environment projects, he added.

Boosting renewable energy development

Energy is indispensable to economic development and national industrialization and modernization. But Vietnam is facing with a looming energy shortage that could dramatically hinder its future progress.

The Ministry of Industry and Trade’s (MoIT) Energy Institute, warns the total energy needed for trading activities will reach 78.8–83.6 million tonnes of oil equivalent (TOE) by 2020 and 152–175 million TOE by 2030. The 2020 demand is around 2.2–2.4 times higher than current levels.

Vietnam exploits a diverse range of energy sources but most cannot be considered abundant. Operational hydroelectricity plants and plants scheduled for construction between now and 2017 have an estimated annual production capacity of 65–70 billion Kwh.

The coal industry’s plans suggest a production output of less than 72 billion kWh per annum, even between 2025–2030.

Offshore gas sources could fuel electricity production exceeding 100 billion kWh per year as well as 3–5 percent of the gas volume required for other industrial sectors. Crude oil output is estimated at an annual 17–18 million tonnes but is expected to ebb after 2015.

Vietnam’s energy systems rest on the standard three pillars of oil, gas, and coal. These pillars will not be able to meet Vietnam’s burgeoning energy demands alone.

Coal shortages are expected in a magnitude of 5.8 million by 2015, 25 million by 2016, and 66 million by 2020. This will necessitate compensatory coal imports from 2015 onwards.

Electricity demand could surge by as much as an annual 15–20 percent.

If Vietnam cannot discover new oil fields with large reserves, its oil and gas will essentially run dry by as early as 2025.

Dependence on imported energy will become a major issue over the next 10–15 years.

Experts warn Vietnam’s inefficiency has wasted huge amounts of energy. Only 28–32 percent of the power produced from coal and oil power plants reaches the national grid, 10 percent lower than developed country averages. The i60 percent efficiency of the country’s industrial boilers is also 20 percent lower than global standards.

Vietnam’s industries use 1.5–1.7 times more energy than their counterparts in Thailand and Malaysia.

Energy consumption is growing at the double the rate of Vietnam’s GDP. In developed countries the ratio is less than one.

Obsolete technology, outdated equipment, aging infrastructure, and poor management all contribute to Vietnam’s energy waste and inefficiency.

Energy shortages already force Vietnam’s annual energy imports from China and Laos.

Most other countries get their electricity from coal, oil, and gas, with less than 20 percent created using hydropower. Half of Vietnam’s energy originates in hydropower, meaning the instability of seasonal vacillations has a much more pronounced effect.

The national energy strategy should focus on adjusting energy policies and consumer behaviours, upgrading technology, encouraging business investment, improving pricing and tax information, and ensuring energy is still accessible for the disadvantaged.

The Vietnam Energy Association has asked the Government to finalize its 2011–2020 plans for the energy sector and include a vision towards 2030 so that the industry can be guided by set targets.

A decree encouraging and promoting the development of renewable energy is of the utmost importance. A Renewable Energy Law should be prepared for submission to the National Assembly.

The energy sector needs to expand its exploration of domestic and foreign energy sources and research renewable energy strategies to limit pollution and protect the environment.

Other priorities include keeping energy prices at reasonable levels and increasing competition within the energy market itself.

Hanoi: Low-cost housing lacks funding

A shortage of capital is threatening the completion of social housing projects for students in tertiary education, workers in industrial zones and low-income earners in Hanoi, the municipal Department of Construction has said.

At a recent conference, the department said 34 social housing projects have been left unfinished and were lagging behind schedule due to capital shortages.

Currently, six projects overseeing the construction of dormitories for students have been put on hold due to a lack of funds. Meanwhile, housing projects at the Hanoi National University of Education, the Ho Chi Minh National Academy of Politics and Public Administration, the University of Forestry and the Electric Power University were reportedly facing 23 billion VND (1.08 million USD) and 111 billion VND (5.2 million USD) in capital shortages.

Two dormitory complexes in My Dinh and Phap Van-Tu Hiep also faced a shortage of 78 billion VND (3.6 million USD) and 700 billion VND (33 million USD), respectively.

These projects were expected to provide accommodation for more than 39,860 students.

In relation to housing projects for workers, two in the Dong Anh and Chuong My districts have only been partially completed and put into use, reportedly lacking the funds needed to complete the rest of the projects.

Three others in Thach That Industrial Zone, Kim Chung New Residential Area and Nam Phu Xuyen Industrial Zone are facing the same problems.

The projects were initially expected to provide houses for 25,300 workers.

However, the department said that most investors have committed to completing 23 housing projects for low-income earners on time, but admitted some were encountering problems with site clearance and legal procedures. The projects are expected to provide 21,410 apartments for low-income earners in the area.

Vice Chairman of the municipal People's Committee Nguyen Ngoc Tuan has invited government departments to propose measures to allocate capital for on-going projects.

He has also asked the construction department to work with the management board of the industrial zones to provide accurate information on the housing demand of workers.

Tuan also called on investors to focus on completing the projects soon after receiving financial support.

Mekong Delta fruit crops hit as disease spreads

With the Mekong delta province of Vinh Long failing to control witches' broom when it affected longan trees, the disease has now spread to the rambutan crop, causing farmers severe losses.

In recent years the disease, which causes an abnormal brush-like cluster of drafted, weak shoots arising from or near the same point on branches and affects fruiting, has infected large areas of longan in the delta.

Vinh Long was among the worst hit during the peak outbreaks between September 2011 and March 2012, with 9,000ha out of its 9,840ha of longan affected, according to the province's Department of Agriculture and Rural Development.

Nguyen Thi Anh, who has grown rambutan on 3,000sq.m in her 8,000sq.m orchard in Long Ho district's Hoa Ninh commune, said that three years ago the disease hit her longan trees and she had to cut them down and replace with rambutan.

This year the rambutan began to fruit but has been affected by the disease, she said.

All 60 rambutan trees in the 2,000sq.m orchard owned by Tran Anh Tuan in Hoa Ninh commune were severely affected by the disease during the flowering period this year.

The trees, which yielded fruits for the last two years, are unlikely to do so this year because the disease causes young rambutan fruits to fall.

"Would we have to cut down the infected rambutan trees like we did with infected longan trees since there is no effective treatment for the disease?" he asked.

More than 126ha out of the commune's 550ha of rambutan are diseased, Doan Ngoc Niem, an agricultural official in Hoa Ninh Commune, said.

Witches' broom is caused by a bacteria whose vector is nhen long nhung (Eriophyes dimocarpi), a tiny pest species that cannot be seen with the naked eye.

Authorities have warned farmers to apply measures to stop the disease from affecting rambutan, including cutting infected branches and using chemicals to kill nhen long nhung.

Nguyen Van Liem, deputy director of the Vinh Long province Department of Agriculture and Rural Development, said his department had instructed the Plant Protection Sub-department to take measures to treat and prevent the spread of the disease.

In the province, a large area of longan crop remained affected by the disease, which has the potential to spread to more rambutan trees, he said.

Therefore, preventive measures should be taken to control the disease in both cases, he said.

Seminar discusses cocoa industry in Mekong delta

A series of measures to develop the cocoa industry in the Mekong Delta region were proposed at a recent seminar held in Ben Tre province.

Phan Thi Thu Suong, deputy director of the Ben Tre Department of Agriculture and Rural Development, said the area under cacao trees in the province plummeted from more than 10,000ha in 2012 to 5,100ha now.

Volatile prices and low productivity due to poor farming practices and limited use of technology were to blame for farmers chopping down cacao trees for other crops, she said.

Le Thi Phi Van, a cocoa researcher, said around 30 percent of the cacao-growing area in Ben Tre was not nurtured while another 40 percent suffered due to improper farming techniques.

The failure to balance various fertilisers had affected yields, she said.

Despite being an auxiliary plant, cacao trees needed proper caring in the form of irrigation and fertilisers, she said.

Nguyen Vinh Thanh, cocoa sourcing manager for Cargill Vietnam, said global demand has outstripped supply for the last three years, and this was expected to continue.

Demand, especially from China, India, and Indonesia, has surged while the area under cultivation has not increased, and offered the cocoa industry in Ben Tre a good opportunity, he said.

Nguyen Van Hoa, deputy director of the Crop Production Department, said Ben Tre has suitable conditions for growing cacao and intercropping it with coconut would result in higher profits for farmers.

Since cacao was still a relatively new crop in Viet Nam, more research needed to be done to come up with better cultivation techniques to improve efficiency, he said.

More agricultural extension programmes to teach farmers the skills and techniques needed for growing, harvesting, and processing cocoa were required, delegates at the seminar agreed, as were close links between various stake holders.

Each area should draw up its own plans for cacao farming, they said.

Scientists and agricultural research institutes should focus on creating new high-quality strains and measures to prevent and control pests and diseases, they said.

Huynh Quang Duc, deputy director of the Ben Tre Agriculture Extension Centre, said large cocoa buying and processing firms should offer reasonable prices to encourage farmers to grow cacao.

Hoa said information about farming techniques, markets, and Government policies needed to be transmitted promptly and precisely to the cacao community to enable them to understand and feel secure about growing the crop.

Cocoa bean prices in the domestic market have increased from 45,000 VND (2.1 USD) per kilogramme late last year to 55,000-59,000 VND (2.5-2.7 USD) now.

Ngo Van Bu, a farmer in Chau Binh commune in Ben Tre's Giong Trom district, said intercropping with his one hectare of coconut has improved his income substantially.

"Earnings from cocoa match that from coconut, and I did not need to hire people to harvest cocoa as I do with coconut," he told Vietnam News.

But without much experience in growing cacao, farmers remain wary.

According to Hoa, the quality of cocoa grown in the province is rated among the best in Asia, persuading many large cocoa buyers and processors to set up business there.

The seminar was held as part of the Vietnam – Netherlands Public Private Partnership for sustainable cocoa development, whose members include the Vietnamese and Dutch governments, Rabobank, Mars Incorporated, and Cargill.

The project is aimed at improving the lives of cacao farmers and their families and ensuring the long-term sustainability of cacao farming.

Binh Duong: Japan’s AEONMALL to operate at major mall

Japanese-invested AEONMALL Binh Duong Co., Ltd. on August 4 was licensed to hire a large space at the AEON Binh Duong-Canary in the southern province of Binh Duong serving its long-term operation.

Located at the Vietnam – Singapore Industrial Park 1 in Thuan An township, the AEON Binh Duong-Canary shopping centre is slated to be operational in November, 2014.

With a total investment of 95 million USD, the shopping centre offers 45,000 square metres out of its 75,000 square metres for business activities.

Yukio Konishi, General Director of AEON MALL Vietnam, said the firm’s subsidiary – AEON MALL Binh Duong – will work with its partners immediately make preparations for the mall’s opening.

He added that the centre will provide quality products and services as well as create jobs for thousands of locals.

After four years of operation, AEON MALL and AEON have carried out projects worth 512 million USD in Vietnam.

Binh Duong, together with nearby Ho Chi Minh City, and Dong Nai, Ba Ria – Vung Tau, Binh Phuoc, Tay Ninh, Long An, and Tien Giang provinces, forms the southern key economic region.

In the first half of 2014, the province received 1 billion USD in foreign direct investment, 400 million USD of which was poured into 83 new projects and the rest was added to 69 existing ones.