PTT to build $22b refinery

PTT group is moving forward with its plan to invest US$22 billion in a petrochemical refinery complex in Viet Nam.

The company said in a statement that a delegation led by group chairman Piyasvasti Amranand and president Pailin Chuchuttaworn on September 8 arrived in the country to submit its feasibility study on the project to the Vietnamese government. During the trip, they also met Prime Minister Nguyen Tan Dung.

The study was originally expected to be submitted in April.

PTT won the government's permission for the study in May 2013. Since August, it has carried out surveys and assessments on geology, seaports, logistics and transport systems, and potential environmental impacts.

The feasibility study includes commercial, technical, financial, social and environmental impact details, as well as strategies and partner selection. The project was initially expected to require a total investment of $28 billion, to be located on 2,000 hectares of land and to operate with the capacity of 660,000 barrels of crude oil per day.

The feasibility study lowered the investment sum to $22 billion, and refining capacity to 400,000bpd. At that capacity, it would produce 260,000bpd of refined petroleum products and 5 million tonnes of petrochemical products annually. The plant will be located in the Nhon Hoi Economic Zone in Binh Dinh province, designed to be Viet Nam's first petrochemical refinery complex.

Beverage firms protest validation stamps on beers

The Ministry of Industry and Trade's proposal to stick stamps on beer products to deter fake products has not been welcomed by the industry. Similar stamps are already placed on tobacco products.

If the beer proposal comes into force, market-watch inspectors will be equipped with a machine to distinguish real from fake stamps.

The latest proposal was made in a draft decree on beer manufacture, sale and management.

At a meeting on Tuesday, brewing representatives were invited to contribute ideas for the draft decree.

Nguyen Van Viet, chairman of the Vietnam Beer Alcohol Beverage Association, said that the country produced more than 3 billion litres of beer a year, enough cans and bottles for about 10 billion beer stamps.

"Sticking the stamps on the cans and bottles would be costly, so this idea should not be included in the draft decree," he said.

Agreeing with Viet, representatives from beer companies expressed their worry about the new regulations.

Vu Xuan Dung, deputy director of the Ha Noi Beer, Alcohol and Beverages Corporation, called for more detailed research on the suggestion.

Dung calculated that each stamp would cost about VND160-170, thus 10 billion stamps would cost VND1.6-1.7 trillion (US$76.1-80.9 million) a year.

"Different plants use different technology, so the way to put the stamps on the bottles should be researched. Different products will need different techniques," he said.

Nguyen Tien Sy, deputy head of the marketing division of Saigon Beer, Alcohol, Beverage Joint Stock Corporation, said that if the new regulation was applied, the company would have to spend about VND800 billion ($38 million) a year on attaching the stamps.

It also would need to spend more on workers to supervise the procedure, he said.

Beer industry representatives suggested putting the stamps on imported beer only.

Deputy Minister of Industry and Trade, Ho Thi Kim Thoa, said that four billion tobacco products a year had stamps attached. She asked why beer products were any different.

Thoa said the ministry would do more research on the new regulation to make sure it did not create too many difficulties for companies.

Transcosmos Vietnam launches new services

Transcosmos Vietnam Company Ltd. launched its contact centre and business process outsourcing (BPO) services for enterprises in Viet Nam yesterday.

At the opening ceremony held in the capital city, company officials revealed that Transcosmos Vietnam was set up last March with headquarters here, and its business operations were launched last July.

With the establishment of Transcosmos Vietnam, the company now owns 69 global business centres. In the ASEAN region, Viet Nam is the third country where Transcosmos is expanding its business, following Thailand and Indonesia.

Total trade turnover between Viet Nam and Chile reached US$560 million in 2013, said Fernanado Urrutia, Chilean Ambassador to Viet Nam.

Urrutia was speaking at a workshop on free trade between the two countries in Ha Noi yesterday.

Bilateral trade reached $560 million in 2013, 55 per cent in favour of Chile. Trade volume has been growing steadily.

The Ambassador said that when he first arrived in 2010, the volume was only $334 million, 69 per cent in favour of Chile.

According to statistics from the Chilean Trade Commission, known as ProChile, between January and May this year Chilean exports to Viet Nam reached $149.1 million, while imports from Viet Nam were $126 million.

This was a trade increase of 19.2 per cent compared to the same period last year.

A Free Trade Agreement that took effect on January 1 created new business opportunities for both sides and made it easier to access other markets within each region.

The agreement covers more than 9,000 products. For Chile, it was important to trade beef, pork, dairy products and fruit.

The FTA is focused on the trade of goods, leaving negotiations about services and investments to a second stage.

According to the agreement, Viet Nam will remove 87.8 per cent of tax for Chilean products over 15 years, while Chile is committed to removing tax on 99.62 per cent of Vietnamese exports by 2017.

Viet Nam is the second biggest trading partner for Chile in South-east Asia. Jaime Rivera, Chilean Trade Commissioner and co-ordinator of ASEAN markets, said Chile wanted to use Viet Nam as a platform to access Laos and Cambodia.

Chile is strong in the production and export of minerals, food, timber, seafood and wine.

ProChile statistics of export turnover of Chilean goods to Viet Nam between 2012-13 show a remarkable increase. The export turnover of dried fruit rose by 2,635 per cent, king crabs by 53 per cent, pharmaceuticals by 58 per cent, seabass by 36 per cent, spare parts for building by 24 per cent, salmon and trout by 23 per cent - and fresh grapes by 20 per cent.

Chile has trade agreements with all other countries in Latin America. That is it is considered as as a natural gateway for Viet Nam.

Compared to Viet Nam's other FTA partners, Chile is furthest away, but their economies supplement each other, said Nguyen Thi Thu Trang, Viet Nam Chamber of Commerce and Industry's World Trade Centre director.

The capitalisation of Chile's FTAs with Malaysia, Viet Nam and Thailand is one of its main objectives in the ASEAN region.

"In these particular markets, we expect to grow at a rate of over 20 per cent in goods that exclude copper," said Rivera.

The workshop was organised by the Embassy of Chile, the Chilean Promotion Bureau (ProChile) and the Viet Nam Chamber of Commerce and Industry (VCCI).

Experts urge cigarette tax hike

Experts are seeking a much larger increase in the special consumption tax on tobacco products than that proposed by the Ministry of Finance.

At a press conference on September 13, experts said the ministry's proposal was too low and not strict enough to reduce consumption and fight trade fraud.

They cited the tax rate on the retail price of cigarettes in Vietnam , which currently stands at 41.6 percent. To achieve the national strategy of reducing smoking from 47.4 percent to 39 percent of males in the population, the new tax must be 105 percent in July 2015 and 145 percent in 2018.

According to the draft amendment on the Law on Special Consumption Tax of the Ministry of Finance, the consumption tax on cigarettes will be raised from 65 percent in 2014 to 75 percent in 2015 and 85 percent in 2018.

The new tax is expected to contribute more than 2.9 trillion VND (131.8 million USD) in taxes next year and 7.7 trillion VND (350 million USD) in 2018.

Nguyen Tuan Lam from the World Health Organisation said that if the new tax could increase the price of cigarettes by 10 percent, the consumption level will fall by a mere five percent.

The experts' proposal has received support from the non-government organisation HealthBridge Canada in Vietnam . Pham Thi Hong Anh, HealthBridge Canada country director, cited the Ministry of Health's report in 2010, which said 15 million Vietnamese people were smokers, and one of every four smokers were 15 to 24 years old.

One of the reasons why millions of Vietnamese could afford to smoke was the low tobacco tax rate, which was only higher than that of Cambodia compared with other ASEAN countries, Hong Anh said. Vietnam imposed a 41.6 percent rate while that of Brunei was 81 percent, Singapore 71 percent and Thailand 70 percent.

Hong Anh said the tax rate should account for two-thirds of the retail price to achieve the target for reducing tobacco consumption.

"The proposal of the Ministry of Finance to raise the rate from 65 percent to 75 percent is, in my opinion, not effective. The consumption power of these products will not change," she noted.

Replying to concerns that a high tax rate could lead to a rise in smuggling, Hong Anh said tight management of the retail market could help in minimising smuggling.

She said the fight against smuggling was mainly focused on the border gates and remained loose in domestic areas. If tobacco trading in domestic areas is placed under strict control, the problem will be solved, she added.

However, Phan Thi Hai from the Ministry of Health's Prevention and Control on Tobacco Harm Programme said the experts' proposal was quite high.

She said the ministry agreed with the increase but proposed raising it from 65 percent in 2014 to 85 percent in 2015 and 105 percent in 2018. Hai admitted that this will only maintain smokers' current purchasing power.

Vissan to increase exports to Myanmar

Vissan, a well-known food producer in Vietnam, is seeking to boost the export of its products to Myanmar, a potential market in the Southeast Asian region, said the company’s leader.

Vissan General Director Van Duc Muoi introduced the company’s products such as sausage, spring roll and frozen food during his recent working session with visiting chief minister of Myanmar ’s Yangon region Myint Swe.

Myint Swe spoke highly of the quality of products of Vietnamese businesses in general and Vissan in particular.

Via exhibitions held in Myanmar , Vietnamese goods have gained a foothold in the country and won locals’ favour, he said, adding he is willing to serve as a bridge for Vissan to increase its exports to the Myanmar market, thus fostering economic ties between the two nations.

Vissan, a subsidiary of the Saigon Trading Group, was founded in 1970 and was officially put into operation four years later. Its business covers the processing and trading of fresh frozen meat and meat-related food.

The company is capable of producing about 30,000 tonnes of meat products a year.

Vietnam’s economic integration taken to next level

To make inroads into non-traditional export markets, where consumers give first preference to Vietnamese products, the country has undertaken an extensive global marketing strategy on a number of fronts that is showing early signs of success, radio The Voice of Vietnam (VOV) reported on September 15.

In the eight months leading up to September, Vietnamese exports to the US jumped 22.5 percent when compared against last year’s corresponding period, tallying in at a record high 18.5 billion USD, according to statistics of the Ministry of Industry and Trade.

Other leading export markets during the eight month period showing marked improvement in exports include the European Union (EU) with exports of 17.9 billion USD (up 13.3 percent), ASEAN region at 12.4 billion USD (up 0.5 percent), China at 9.8 billion USD (up 15.2 percent), Japan at 9.9 billion USD (up 12.7 percent) and the Republic of Korea at 4.3 billion USD (up 3.1 percent).

Clearly much of this success can be attribute to the nation’s many intrinsic strengths, including a young labour force, abundant natural resources and political stability, to name just a few.

However, to take global integration to the next level, the nation needs to get serious about increasing national competitiveness, Dr. Tran Du Lich, member of the National Assembly’s Economics Committee was quoted by the VOV as saying.

Overcoming the particular competitive challenges facing individual export markets is also a prerequisite to creating the next wave of growth and prosperity for the socio-economic benefit of all of its citizens, Dr. Lich said.

Most notably, according to Dr. Lich, the Vietnamese manufacturing support industry has not sufficiently developed and as a result the country won’t be able to fully capitalise in the short-term on trade pacts such as the TPP or the EU-Vietnam deals when they come into effect in the not too distant future.

The support industry is the decisive factor in developing and enhancing the nation’s competitiveness in terms of price, quality and timeliness of production. Until the support industry is adequately developed in the long-term, sustainable global integration is little more than an elusive dream, he said.

Moreover, Dr. Lich said, in order to effectively compete in the global marketplace, technical barriers related to acceptable levels of pesticide residues in agriculture products as well as antibiotic residues in shrimp and other seafood must be effectively dealt with.

Vietnamese businesses in these industries cannot be complacent and need to clearly understand they must perform an appropriate due diligence in each specific market and take the initiative to learn about, comprehend and comply with the increasingly complicated regulations governing pesticide and antibiotic residues.

If they do not, or are unable to comply with these complex guidelines, Vietnamese businesses won’t be able to penetrate markets in Eastern Europe, Japan, the United Arab Emirates (UAE), the US or any of the proposed TPP member nations, Dr. Lich added.

Dr. Lich cautioned that this is no time for laggards. Vietnamese businesses must address the competitiveness issues with a high sense of immediacy, recognizing that competitiveness is the catalyst in terms of driving export growth.

In other words, as it relates to the support industry, Dr. Lich said if domestic production remains inherently dependent on imported materials, it would be difficult if not impossible to raise the competitiveness of Vietnamese products to make a difference of any consequence.

Another significant factor putting Vietnamese businesses at a competitive disadvantage Dr. Lich said is that foreign invested enterprises in Vietnam benefit from brand name recognition of their parent company.

This same brand name recognition places them in a more opportune situation to take better, if not full advantage, of signed Free Trade Agreements (FTAs) such as the TPP and EU-Vietnam pacts when they comes into effect, in comparison to domestic businesses, he noted.

In contrast, domestic enterprises lack stable export markets and are at a significant competitiveness disadvantage.

The Investment and Trade Promotion Centre (ITPC) in Ho Chi Minh City has been innovative and proactive in addressing this particular obstacle to competitiveness and has carried out market surveys to identify specific markets needs and concerns directly with businesses Dr. Lich said.

Businesses involved in the export of garments and textiles, footwear, handbags, wood and seafood have also not been resting on their laurels and continue to vigorously promote exports in traditional markets for which they have earned high profits for many years, including the US, the Europe and Japan.

Vietnamese businesses need to take a lesson out of these businesses and ITPC’s playbook and aggressively tackle the barriers to national competitiveness of Vietnamese products, Dr. Lich said.

ITPC Deputy Director Ho Xuan Lam in turn said advertising and marketing activities are indispensible for domestic enterprises. Ho Chi Minh City is always seeking new markets and updates information for enterprises to bolster exports.

The city’s annual activities are designed to provide up-to-date export information and conduct surveys to facilitate business operations, he noted.

Animal feed output estimated to grow 10 percent

The nation’s animal feed output is projected to increase 10 percent this year against 2013, buoyed by a recovery of cattle and poultry farming and strong growth in seafood exports, the Saigon Times Daily reported.

Le Ba Lich, Chairman of the Vietnam Feed Association, said demand for cattle and poultry feed is forecast to reach 14 million tonnes this year, 700,000 tonnes higher than last year while feed for shrimp and tra fish farming is also expected to fare better.

“Growing demand will lead to a year-on-year increase of 10 percent in animal feed output this year,” the Daily quoted Lich as saying.

Lich attributed the expanding animal feed output to the rebounding of the cattle and poultry sector as a result of animal diseases put under control and rising demand for these products. Fish farming is being widened given a strong rise in seafood exports.

Nguyen Tri Cong, Chairman of Dong Nai province’s Husbandry Association, said pork prices have bounced back and remained stable at 54,000-55,000 VND a kilo. Therefore, more farmers have raised pigs and increased their herds, resulting in higher demand for animal feed.

“Animal feed factories are increasing their production output to meet the demand,” Cong was cited as saying.

According to the General Statistics Office, pig and poultry breeding last month edged up 1-1.5 percent and 2 percent respectively compared to the same period last year.

Data of the Ministry of Agriculture and Rural Development showed that seafood exports in the first eight months of this year jumped 25.3 percent year-on-year to 4.95 billion USD owing to higher demand from export markets and supply in Vietnam.

The area for tra fish farming in the Mekong Delta provinces of Dong Thap, Vinh Long and Tien Giang in the first eight months expanded 2.4 percent, 0.1 percent and 31.6 percent over the same period last year to 1,555, 425 and 158 hectares respectively. The area for shrimp cultivation leapt in the provinces of Ben Tre, Ten Giang, Kien Giang, Soc Trang, Bac Lieu and Ca Mau in the period.

The Vietnam Feed Association forecast animal feed output will continue to increase next year as enterprises are expanding and building new production facilities.

According to the Vietnam Feed Association, Vietnam turned out nearly 17 million tonnes of animal feed last year with foreign-invested firms accounting for 65-70 percent although they made up only 25 percent of 200 animal feed firms nationwide.

Vietnam imported nearly 2.25 billion USD worth of animal feed and relevant production materials in January-August, up 8.6 percent year-on-year.-

FTA with customs union does not pose threat to steel industry

The European Market Department under the Ministry of Industry and Trade has dispelled the rumour that domestic steel producers would face bankruptcy in face of the pending free trade agreement between Vietnam and the Customs Union of Russia, Belarus and Kazakhstan.

During negotiations for the FTA, Vietnam promised to eliminate import tax on more than 100 steel products from the three countries, a move that seems to trouble some domestic steel manufacturers, the department said.

However, both sides agreed the process needed to be based on common interests and a road map for the tariff reductions for several commodities would be devised. Tax on a number of steel products would be reduced gradually, rather than immediately.

Under the agreement, the union would also provide Vietnam with steel types that are not produced domestically. Steel producers from the customs union would have to compete independently with other suppliers on the Vietnamese market, the department said.

The seventh round of negotiations will take place mid-September, with the final agreement scheduled to be signed in early 2015.

The agreement is expected to provide opportunities for Vietnam to increase its exports to these three countries that still hold a large cooperation potential.

Vietnam will focus on selling garments, footwear, and agricultural and aquactic products to the customs union, which in turn will export iron, steel and machinery to the Southeast Asian country.

Dien Bien seizes macadamia potential

The northern province of Dien Bien, which has perfect conditions for growing macadamia trees, has invested in cultivating the lucrative crop in a bid to reduce poverty and eradicate hunger in the locality.

In 2009, Quang Van Tay in Bua 2 village, Ang To commune, Muong Ang district was the first farmer to plant macadamia trees as part of the province’s Danish-Vietnamese cooperation project, which provided him with financial and technical assistance.

The macadamia trees, combined with coffee plants, flourished on his land and brought a promising first harvest.

Following Tay’s success, the project invested 200 million VND (9,500 USD) to extend macadamia cultivation to more than 15ha in Muong Ang district during the 2011-2012 period.

Director of Macadamia Dien Bien JSC, Pham Duy Thanh, said the province planned to cultivate the crop on more than 4,000ha in Dien Bien, Tuan Giao and Muong Ang districts. So far, 3,400ha have been planted with macadamia trees.

According to experts, as many as 300 trees can grow on each hectare. The trees can bear nuts for 60 years, starting from the fifth year onwards, with output peaking at nearly 5 tonnes during the 9th year.

Currently, macadamia nuts sell for 250.000-300.000 VND per kilogramme (11.9–14.28 USD/kg), which is more profitable than coffee beans. Plus, it costs less to cultivate macadamia trees than coffee plans. Farmers can generate lucrative profits from selling the trees’ valuable nuts and sturdy wooden trunks.

Director of the provincial Department of Agriculture and Rural Development Pham Duc Hien said that intercropping macadamia with coffee plants was a sustainable way to grow the crop, whilst increasing the efficiency of coffee crops and farmers’ incomes.

The macadamia nut is dubbed “the Queen of Nuts” for its extraordinary nutritional value.

Experts said compared to other common edible seeds, such as almonds and cashews, macadamias are high in fat and low in protein. Out of all the seeds and nuts, macadamias have the highest amounts of mono-unsaturated fats.

The plant, indigenous to Australia, was introduced to Vietnam in 2002 for trial cultivation. Local scientists took soil samples and found that the northwestern and Central Highland regions had the best growing conditions for the plant.

Most notably, on a per tree basis, Vietnam’s macadamia trees have produced the same, and higher, yields as Australia, the world’s number one macadamia cultivator.-

VN Labour Brokerage Association debuts in Czech Republic

The Vietnam Labour Brokerage Association in the Czech Republic was launched on September 13 in Prague.

At the meeting, representatives from more than 10 companies operating in labor brokerage in the country debated urgent issues and feasible solutions for bringing skilled and disciplined Vietnamese workers to the Czech labour market which is in high demand.

They also discussed how to help the Vietnamese community get updated and accurate information about the situation of the resident country and Vietnamese businesses’ operations.

Present at the event, Ambassador to the Czech Republic Truong Manh Son stressed the need to strengthen operational structure of the association to create an effective mechanism making it easier for Vietnamese workers to access the Czech labour market.　

Vietnamese representative agencies in the Czech Republic will work together with Vietnamese businesses in working sessions with Czech relevant agencies to remove bottlenecks in the supply of Vietnamese employees to this market, Son added.

The Embassy was asked to take specific measures supporting the dispatch of Vietnamese skilled workers to the Czech labour market.

Support for businesses to penetrate key markets

An export forum held in Ho Chi Minh City on September 12 discussed how businesses could boost sales through the development of high-quality popular brands.

Most importantly, businesses needed to develop products that were competitive in the domestic markets Dr. Tran Du Lich, a member of the National Assembly Committee for Economics, said.

In addition to the benefits and opportunities provided by open markets, such as diversifying products and expanding operations, enterprises should be aware of the technical barriers and anti-dumping duties imposed by importers.

Participants in the forum suggested businesses actively engage with member countries of the Association of Southeast Asian Nation (ASEAN) and the Trans-Pacific-Partnership (TPP), and other promising markets, not just traditional markets, such as the US, the EU and Japan.

According to Japanese Consul General to Ho Chi Minh City, Nakajima Satoshi, Vietnamese firms needed to focus on improving food health and safety standards, refining preservation processes, and following import-export regulations in order to boost their exports to foreign markets.

The Secretary of the Vietnamese Embassy in India Bui Trung Thuong suggested local exporters study their target markets closely and implement trade promotion measures.

Vietnam and India aim to generate 7 billion USD in bilateral trade by 2015.

Between January and August, Vietnam’s export revenue totalled nearly 97 billion USD, a year-on-year rise of 14.1 percent.

The annual export forum titled “Orienting Export Markets and Products” was organised by the municipal Investment and Trade Promotion Centre (ITPC).

Vietnam, Czech Republic boost investment

Vietnam-Czech Republic business forum opened in Prague on September 12 aiming to create opportunities for Vietnamese firms to meet and discuss business and investment cooperation with their Czech counterparts.

Addressing the forum, Deputy Minister of Industry and Trade, Do Thang Hai expressed his delight at the fine development between the two nations in such fields as politics, economics, trade and culture.

However, he said, economic and trade relations between the two nations has not lived up to its fullest potential, noting Vietnamese businesses have encountered difficulties meeting the high demands of the Czech Republic and EU market.

Hai expressed his hope that the signing of the Vietnam-EU Free Trade Agreement later this year will bring a new impetus to trade relations between the two countries and serve as a bridge connecting the markets.

During the forum, deputy head of the Trade Promotion Agency under the Ministry of Industry and Trade, Do Kim Lang presented trade and investment opportunities in Vietnam.

For his part, Czech Republic’s Deputy Minister of Industry and Trade, Pavel Solc highlighted regular meetings between the two countries’ businesses have been fruitful in elevating ties between the two nations.

He emphasised Vietnam is an important partner of the Czech Republic in the fields of politics, economics and trade and both nations have exponential potential for enhanced cooperation in the future.

Prospects for Vietnamese footwear by late 2015

Vietnamese footwear exports will enjoy a zero tariff once the ASEAN Economic Community (AEC) is established in late 2015, making room for producers to expand their markets and access new materials.

ASEAN represents a substantial footwear market for Vietnam, spending more than 1.8 billion USD on footwear imports last year. The establishment of the AEC in 2015 will offer Vietnam a host of advantages.

Vietnam has an abundant qualified and low-cost workforce, giving it an edge over Thailand, Indonesia and Malaysia, General Secretary of the Vietnam Leather, Footwear and Handbag Association (LEFASO) Phan Thi Thanh Xuan said.

AEC member states will have a better chance to develop new materials, easing their reliance on imports and increasing the added value of end products, she said, adding that they are also expected to provide a steady supply of footwear and gain a solid foothold in major markets, such as the US, the EU and Japan.

However, Xuan also mentioned an intensification of competition once zero tariffs are applied, saying that this trend was inevitable.

At the moment, almost all the AEC countries have set up technical barriers to protect their domestic products, she added.

To strengthen the sector, Minister of Industry and Trade Vu Huy Hoang called upon the Vietnam Textile and Garment Association and LEFASO to devise plans to develop support industries.

According to industry insiders, domestic firms should reinvent themselves by improving the quality of products and popularising their trademarks.

They are also advised to prepare for the implementation of international agreements on issues of intellectual property, consumer protection, small and medium-sized enterprises, workforce quality, and funding.

Relevant bodies will update the business community on opportunities and challenges ahead once they are fully integrated into the AEC.

Vietnam to boost exports to Russia

Economists, managers and businesses proposed a number of practical measures to increase Vietnam’s investment and trade in Russia at a seminar hosted by the Ministry of Industry and Trade in Hanoi on September 12.

They emphasised the need to have specific plans in researching the market carefully and advertising products in the market.

According to Vice President of the Vietnam Association of Seafood Exporters and Producers (VASEP) Nguyen Hoai Nam, despite the progress made over the last few years, Vietnam’s businesses still face a number of difficulties in exporting to the Russian market, including competitions with exporters of similar products and tariff barriers on agricultural and fisheries products.

Nguyen Ton Quyen, President of the Vietnam Wood and Forestry Product Association, proposed the Government adopt policies to promote investment and trade between the two countries, creating opportunities for Vietnam ’s more competitive industries, such as textiles, footwear, wood products and seafood.

Furthermore, both sides should approve bilateral payment mechanisms that use local currencies in order to reduce risks and limitations to trade, and provide support for business transactions, he added.

Most importantly, Quyen pushed for the prompt establishment of the Association of Vietnam Investors in Russia (AVIR), a platform to help Vietnamese businesses find opportunities and expand their operations in Russia .

According to statistics from the ministry’s Import-Export Department, two-way trade between Vietnam and Russia doubled during the 2008-2012 period, with an average growth rate of 28 percent. In 2013 alone, it totalled 2.76 billion USD, a 12.61 percent increase compared to the previous year. Of which, Vietnam ’s export to Russia was worth 1.91 billion USD.

Cuba to further cooperation with Can Tho city

Cuba will boost cooperation with the Mekong Delta city of Can Tho in developing rice and fruit production and aquaculture, Cuban Food Industry Minister Maria del Carmen Concepcion Gonzalez has said.

At a working session with Dao Anh Dung, Vice Chairman of the municipal People’s Committee on September 12, the Cuban minister said her country will prioritise seed production to serve the agricultural development of the city and other localities in the region.

She said after the Vietnam working visit, she will send a document on cooperation with Can Tho to the Vietnam-Cuba Inter-Government Cooperation Committee at its meeting in Havana in October.

For his part, Dung informed his guest that last year, the city exported 900,000 tonnes of rice and 163,000 tonnes of tra fish, earning 460 million USD and 432 million USD, respectively.

Can Tho is focusing on developing large-scale rice field models on a total area of 25,760 ha and building three hi-tech agricultural zones on 389 ha. It has also zoned off 52,000 ha for aquaculture, accounting for 36.7 percent of its natural area.

As the city is home to only Cuban business, the Vice Chairman expressed wish for more trade promotion activities between Cuba and Vietnam in general and Can Tho in particular.

Can Tho will provide the best conditions for Cuban businesses to operate in the locality, he affirmed.

Vietnam, Cambodia look forward 5 billion USD trade

Deputy Foreign Minister Pham Quang Vinh and Cambodian Deputy Prime Minister and Foreign Minister Hor Nam Hong expressed their resolve to lift two-way trade to 5 billion USD by the end of 2015.

During their talks in Phnom Penh on September 11, Hor Nam Hong underlined the growing multifaceted cooperation, especially in economics, between the two countries.

The officials discussed measures boosting further the bilateral ties in economics, investment, politics, and diplomacy.

They also committed to increasing the border demarcation in order to build the common borderline of peace, friendship and development.

Phu Yen to house high-end resort complex

New City Properties Development Co. Ltd. of Brunei was granted an investment licence for the construction of a resort complex in central Phu Yen province on September 11.

The firm will invest over 1 billion USD in the 357.52ha complex, called NewCity Vietnam in An My and An Chan communes, Tuy An district.

The eight-year project is split into three phases, with the first commencing in 2014-2015 to clear the plot of land and build supermarkets and services.

The second phase will run from 2016 to 2019, with the construction of golf courses, hotels, resorts, a water park, a conference centre, and offices, while the final phase will run in 2020 to make finishing touches.

In the ceremony, Lee Jung Jun, Chairman of the Company’s Board of Directors spoke highly of Phu Yen’s tourism potential, adding that the company aimed to enhance it even further by making the NewCity Vietnam complex a popular destination for international tourists.

Vice Chairman of the Provincial People’s Committee Tran Quang Nhat called on local authorities to facilitate the smooth implementation of the investment project.

The complex is expected to become fully operational in 2021.-

Work agencies get thumbs up

Twenty-three percent of Vietnamese recruitment agencies sending workers abroad were rated as "A1" or "top excellent" in an official ranking published on September 11.

More than 50 percent of the agencies belonged to group A2, or "excellent", and nearly one fifth received B1 status - "good".

The evaluations were made by the Vietnam Association of Manpower Supply (VAMAS) on the basis of a Code of Conduct for recruitment agencies.

This was introduced in 2010 with the support of the International Labour Organisation (ILO) through the GMS Triangle project funded by the Australian Government.

The Code of Conduct is a voluntary self-regulation tool aimed at improving companies' compliance with Vietnamese legislation and international standards, ensuring better business management and protecting migrant workers from exploitation.

The ranking includes four categories – top excellent and excellent (A1 and A2), good (B1 and B2), satisfactory (C1 and C2) and not satisfactory (D1 and D2).

Nguyen Luong Trao, VAMAS's president said the evaluation was not only about data, assessment and rating but more about persuading and supporting companies to improve work ethics and comply with ILO standards.

Nguyen Ngoc Thach, deputy general director of the SIMCO Song Da Joint Stock Company, which was assessed as an excellent recruiter (A2 ranking), said the programme was objective because assessments were made by gathering feedback from workers, localities and country representative offices in Vietnam.

He said it benefited recruitment companies of high quality by boosting their reputation.

In the second year of ranking, the number of recruitment agencies opening up for evaluation more than doubled to 47 from 20 in the first year.

They account for more than 27 percent of all the agencies in the country and cover half of the total number of contract-based overseas workers. The number of participating agencies is expected to reach 70 in the third year.

Six out of 20 companies rated in the first year climbed up in rankings in the second year by showing improvements whereas five others took a step back due to violations of the code.

Experts said they hoped the rankings would help boost competitiveness among enterprises so that they worked harder to improve their services to workers.

Tro said VAMAS also hoped to expand the code compliance to all recruitment agencies, while noting that this could be difficult because of the voluntary nature of the organisation.

He said he expected more support from State agencies, especially the Vietnam General Confederation of Labour, in efforts to expand the evaluation.

Deputy Minister of Labour, Invalids and Social Affairs, Nguyen Thanh Hoa, said the Ministry was committed to supporting efforts to expand the size of evaluation.

"It's a good way to promote fair competition, prevent abusive practices in the recruitment processes, improve the quality of company services, and bring companies to a new height," he added.

Hoa requested VAMAS, through the knowledge it gains from code assessment, to contribute to the revision of the Law for Vietnamese Workers Overseas in 2016. The law was issued in 2006.

He said the new law would be revised so that it better supported Vietnamese workers abroad.

While stressing the need that State agencies and companies take better care of workers, Hia also said it also important that workers take care of themselves, implying the importance of raising awareness and knowledge.

He also said Vietnam should learn from countries in the region who had experiences in sending workers overseas, such as Thailand, the Philippines, and Indonesia. He said they all sent more workers overseas than Vietnam.

The flow of Vietnamese workers overseas is expected to increase when the ASEAN Economic Community comes into being at the end of 2015.

"This requires better protection of migrant workers and improved services of recruitment agencies. So self-regulations tools are a win-win solution to both companies and workers," said ILO Vietnam Director Gyorgy Sziraczki.

"Labour migration should no longer be seen as only a way to reduce poverty. Vietnam should look more into the quality of recruitment services and the protection of workers to reap the full benefits of international migration."

Vietnam presently has more than 170 recruitment agencies. It sends about 80,000 workers abroad annually to more than 40 countries.

Experts call for better policies to tap potential of pay TV sector

The potential for the development of the pay television industry in Viet Nam remains large, but policies are needed to ensure that this development is rapid and sustainable.

Industry experts expressed this view at an international conference in the capital city yesterday which discussed opportunities for the development of pay television in the country.

The Cable and Satellite Broadcasters Association of Asia (CASBAA) and VTVCab sponsored the conference, which carried the theme "Viet Nam In View 2014" and attracted more than 100 representatives from leading television and mass communication enterprises.

Since its inception in Viet Nam in 1993, the industry has experienced dynamic growth alongside the country's economic development but has yet to achieve its full potential.

Hoang Vinh Bao, director of the Authority of Broadcasting and Electronic Information under the Ministry of Information and Communications, said pay TV has expanded to most provinces and cities throughout the country, with more than 30 providers of cable, satellite, mobile and digital TV services.

Although the number of pay TV subscribers nearly doubled from 2010 to 2013 and reached 6.5 million by the end of last year, the potential for pay TV remained huge in a country of approximately 22 million households and a population of 90 million.

Vu Tu Thanh, deputy regional managing director and representative of the US-ASEAN Business Council in Viet Nam, said that to date, pay TV services had penetrated a mere 25 per cent of the population, which was lower than that of neibouring countries at 31.8 per cent.

Thanh added that with such a huge potential, Viet Nam should have policies to stimulate the development of pay TV services to contribute to the country's economic development.

Television advertisement turnover enjoyed a rapid growth of around 28 per cent in recent years. Advertising on pay TV channels has become a new trend and was projected to account for 80 per cent of future advertisement turnover, according to Thanh.

Le Dinh Cuong, deputy president of the Viet Nam Association of Pay TV, said the industry was faced with the growing popularity of over-the-top (OTT) television, as well as cheating and evasion of fee payments among subscribers and unhealthy competition among service providers to attract more subscribers.

Cuong added that the participation of telecommunications companies such as VNPT, Viettel and FPT in the pay TV market would pull down pay TV fees, and the association was considering imposing regulations on floor service prices to prevent this.

Since pay TV is an indispensable development trend and plays a key role in serving the country's demand for entertainment, the Government should focus on rearranging pay TV service providers to creating strong companies and enhance competitiveness and quality within the industry, said Bao.

He also called for the completion of legal frameworks for the industry to ensure its development in line with the Government's plan and the global trend.

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