BUSINESS IN BRIEF 27/11 Capital outside banks necessary for real estate market-Central Bank The real estate sector has mainly raised funds from the banking system so it is necessary to seek capital from other channels outside the banking system, said the State Bank of Vietnam (SBV) in a document in response to proposals by the HCMC Real Estate Association (Horea). Previously the association proposed the central bank to have a mechanism to create medium and long term funds for the real estate market and a credit policy for the first house buyers. In response, SBV said that it has already issued a mechanism to raise medium and long term capital by permitting credit institutions to use short term credit source for medium and long term loans. Answering the suggestion of a social housing credit policy for the resettlement of citizens, the central bank said that the social housing policy has been promulgated synchronously by the Government and the National Assembly in accordance with the Housing Law, Government Decree 100/2005 on social housing development and management together with circulars by relevant ministries and agencies. SBV has given Circular 25/2015 guiding assigned banks to provide preferential loans to implement social housing policies and instructed Vietnam Banks for Social Policies to implement the Decree 100. First phase of Phu Lac Wind Power Plant inaugurated The first phase of the Phuc Lac Wind Power Plant has been put into operation in Phu Lac commune of Tuy Phong district, the south central province of Binh Thuan. In the first phase, the plant will use 12 turbines with a total capacity of 24MW using under advanced technology of Denmark’s Vesta and HBB of Sweden. The project has a total investment of nearly 1.1 trillion VND (49.3 million USD), including 85 percent of loans from the German Development Bank (KfW). In September, the plant went into commercial operation and connected with the national grid. The facility is the third operational wind power plant in Binh Thuan, together with those in Tuy Phong and Phu Quy Districts, increasing the province’s total wind power capacity from 36MW to 60MW. Addressing the inaugural ceremony on November 25, Vice Chairman of the provincial People’s Committee Luong Van Hai said that Binh Thuan has carried out numerous incentives to attract investment in wind power. Up to 19 wind power projects have been to date registered in the province. Solar energy pin factory built in Bac Giang  Work on a solar energy pin project started in the Quang Chau industrial park in Viet Yen district, northern Bac Giang province, according to the Kinh Bac City Development Company (KBC). The project invested by the JA Solar Vietnam Company has an initial investment of 320 million USD and is expected to generate 500 million USD in revenue per year upon its completion. In July this year, a contract in principle on land leasing was signed between the Sai Gon – Bac Giang Industrial Park JSC, a member of the KBC and an investor of the Quang Chau IP, and the JA Solar Hong Kong Investment – a subordinate of JA Solar Group. Under the contract, JA Solar will hire 88 hectares of land at the Quang Chau IP to develop the solar energy pin project with a total capital of over one billion USD. The JA Solar project is the one of the biggest investment projects in the industrial park to date and provides jobs for over 3,000 labourers. JA Solar Group is one of the world’s leading solar power pins using green advanced technology. It has eight factories producing solar power products in Europe, the US and Japan. New Lien Chieu terminal to ease Danang Port congestion The Vietnam government is planning construction of a major new expansion to the country’s third largest seaport located in the central city of Danang on the shores of the East Sea, said experts at a recent forum in Hanoi. A pre-feasibility study for the project at Lien Chieu, which has a budgeted cost of roughly US$1.48 billion, is under review by City officials that want to significantly expand the Danang Port’s capacity. The study, prepared by the engineering consulting firm of Tediport, lays out plans for the work to be completed in 3-phases of construction. The first phase projected to cost US332 million would add 1.87 million tons of capacity by 2020. Phases two and three would increase capacity by 17.53 million tons by 2030 and 46 million tons by 2050 at incremental estimated costs of US$353 million and US$792 million, respectively. Unfortunately, said speakers at the conference, the Danang Port is much too far away from Ho Chi Minh City to readily benefit from the overcapacity the country’s southernmost port currently is experiencing. One of the two main terminals at the Danang Port, Tien Sa, is already operating at maximum capacity, with shippers reporting delays as well as over overloading at storage warehouses in the region. Ground was broken on a US$49 million project last July to bump up the capacity of the Tien Sa terminal to 12 million tons of cargo per annum and enable it to handle container ships with deadweight tonnage of 70,000. Official figures showed the terminals at the Danang Port handled a combined 146,000 twenty-foot-equivalent units in the first half of this year, a 19% on-year rise against the same six-month period in 2015. A record setting 6.5 million tons of cargo passed through the port for the whole of 2015, said speakers at the conference. The pre-feasibility study proposed that the new Lien Chieu terminal be developed on a public private partnership basis with funding provided by a combination of funding from the city of Danang along with bank loans and ODA. The study is not clear which country would provide the ODA for the project but speakers at the conference suggested Japan as the most likely prospect to provide the required funds. Their rational was that the Japan International Cooperation Agency (JICA), agreed last April to provide US$781 million for additional port and road infrastructure at the Lach Huyen deep-water port in the northern city of Haiphong. The northern region is home to numerous Japanese foreign-invested manufacturing companies that would benefit from the Haiphong port expansion scheduled to open in May 2018, said the JICA in explaining its reasoning for providing the funding. A similar line of reasoning would apply to the Lien Chieu terminal, said the speakers, as the central region is heavily invested by Japanese businesses who would readily benefit from the expanded capacity. Vietnam is expected to continue to lead Asian trade growth over the coming decades, said the speakers, noting several forecasts that have projected solid growth for the next two decades. These projections combined with those forecasting record growth among ASEAN show sufficient cargo volumes would be available to justify the large infrastructure and port investment in the Lien Chieu terminal. The decision to move forward with the project by the government is prudent, the speakers at the conference concluded. Economic restructuring, growth model reforms for sustainable development Vietnam’s economic restructuring program for the past 5 years brought about noticeable results. The progress has provided a basis for Vietnam to continue its restructuring plan until 2020. Vietnam’s restructuring program in the 2011-2015 period has focused on macro-economic stabilization and restructuring of the national economy in combination with growth model renovation. The monetary market was kept stable and inflation was under control. These achievements have created the momentum for Vietnam to continue the master-plan on economic restructuring until 2020, focusing on renovation of the growth model to improve quality, economic efficiency and competitiveness, people’s living conditions, and Vietnam’s status in the global arena. Many deputies at the 14th National Assembly (NA) session which included on November 13, underlined that economic restructuring can hardly succeed without a favorable, open, and transparent business environment. “While the market is the driving force for commodities production, businesses should be the backbone of that process. The involvement of enterprises will attract investment from society and link scientists, producers, and the application of advanced technologies for effective production”, said Nguyen Thi Thanh, a deputy representing Ninh Binh province. One of the missions of economic restructuring is to improve the development of economic sectors by using high tech to create high added values. In the next five years, the government should avoid scattered investment, minimize the waste of resources, and tap the potential of key economic zones. “We should improve forecasting and rapid response to changes in domestic and global markets. The master-planning on regional connectivity should be strictly implemented with a focus on defining the core industries and principal products that can compete regionally and internationally. Economic development should go hand in hand with the settlement of social and environmental issues”, said deputy Chu Le Chau, who represents Lai Chau province. Under the restructuring program until 2020, Vietnam attaches special importance to building an independent economy, integrating into the global market, and consolidating its status in the international arena. Economist Nguyen Tri Hieu suggests some solutions:“Vietnam should improve its reliability and prestige in the world market to consolidate foreign investors’ trust in its economy. More importantly, we need to improve people’s lives, increase competitiveness, and raise our credit rating in the world.” Cathay Pacific sees good growth potential in Vietnam Hong Kong-based airline Cathay Pacific has seen good growth opportunities in Vietnam in the years to come as this ASEAN market is expanding fast, especially in air passenger traffic demand. Chris van den Hooven, Cathay Pacific’s country manager for Vietnam, underlined the growth potential at a media briefing in HCMC yesterday. The event was organized to review the airline’s performance in this market and to announce the official rebranding of Dragonair under Cathay Pacific as Cathay Dragon. Cathay Dragon said in a statement that the rebranding would bring the award-winning airline closer to Cathay Pacific in a launch that will provide customers with a more seamless travel experience across the airlines’ respective regional and international networks. Cathay Dragon now operates 10 weekly services from Hong Kong to Vietnamese capital Hanoi and seven flights a week to Danang, a central coastal city which has emerged as an attractive destination for Chinese-speaking travelers including those from Hong Kong. Meanwhile, Cathay Pacific offers 18 flights a week between Hong Kong and HCMC, using its modern Airbus A350 aircraft for the route on most days of the week. Van den Hooven described the past 25 years active in Vietnam as “a successful story” for Cathay Pacific and added that the airline saw an opportunity to expand in this market, supported by high economic growth and stronger demand for air travel. Data of the General Statistics Office showed Vietnam welcomed more than 28,560 visitors from Hong Kong in the first 10 months of this year, up a staggering 72.5% compared to the same period last year. Cathay Pacific’s business in Vietnam has fared better in the year to date, he said, and the carrier embraces a long-term commitment to the Vietnamese market because of its growth potential. Asked how Cathay Pacific can deal with rising competition from other airlines, particularly carriers from the Middle East, he said that Cathay Pacific’s advantages lie in its flight network and frequency as well as in-flight offers. Cathay Pacific and Cathay Dragon offer seamless connectivity at their hub in Hong Kong, where they can find good connecting flights to other parts of the world including North America, according to him. Vietnam's 4th wind power plant starts generation  The country plans to have 800 megawatts of wind power by 2020, but pricing remains an issue. A wind power plant in the central province of Binh Thuan started its commercial run on November 25, after more than a year of construction. Binh Thuan Wind Power Company said the Phu Lac plant has 12 turbines with a combined output of 24 megawatts, local media reported. The project costs more than VND1 trillion (US$48 million), including a $37 million grant from German government development bank KfW. Vietnam is operating three other wind power plants including two in Binh Thuan and another in the Mekong Delta’s Bac Lieu Province. The country now depends on thermal and hydropower for almost all of its electricity demand, while wind power has only contributed 0.3%, according to a report this week from state-owned utility Electricity of Vietnam. Thermal power plants make up more than half of the total generation, and among them, coal-fired plants account for 34%. The country has been taking steps to develop cleaner and more sustainable energy sources. It plans to have 800 MW of wind power by 2020, compared to 140 MW as of March this year, according to a post on the government's website. Investors have committed to more than 45 wind power projects to generate more than 4,800 MW in total, but most of them are still on paper. Binh Thuan alone has 16. Various media reports suggest that investors in general are reluctant to develop wind power projects because prices in Vietnam are not high enough to cover the costs. In Vietnam, state-owned Electricity of Vietnam, which controls the national grid, reportedly pays US$7.8 cents or VND1,731 per kilowatt-hour for wind power, much lower than the rates in China, Japan and the Philippines. Binh Thuan Province's Wind Power Association has requested the government to raise prices to 12 cents in 2017. FLEGT—A passport to the EU for Vietnamese timber products Vietnam and the European Union (EU) have agreed in principle on a Forest Law Enforcement, Governance and Trade Voluntary Partnership Agreement (FLEGT VPA). It is expected to promote sustainable forest management and wood processing in Vietnam, as well as to earn Vietnam a passport for its exports of timber and timber products to the EU market. This means that the high standards of accountability and traceability demanded by the EU Timber Regulation will no longer be required of Vietnamese timber exports recognised under the FLEGT VPA. With this outcome in mind, Vietnam and the EU have been negotiating the VPA since October 2010. Last week in Hanoi, the two sides announced the conclusion of their negotiations on the core terms of the agreement after six years of deliberations including dozens of high-level and technical meetings. This marks a step forward for the two sides’ cooperation to combat illegal logging, to strengthen forest governance and to promote bilateral trade in legal timber products. Once the agreement is signed and ratified, it will open the door for Vietnam’s wood processing industry to expand its exports not only to the EU, but to other markets as well, benefiting the economy, the environment and society, as well as enhancing Vietnamese wood brands. Vietnam’s exports of wood and wood products have gone to more than 90 countries around the world with their total value exceeding US$7.1 billion in 2015 and nearly reaching US$6 billion in the first ten months of this year. Wood processing now has one of the highest export values of any agroforestry and fisheries sector, contributing to an increase in the nation’s foreign currency collection and its socioeconomic development, while gradually asserting the industry’s position on the international market. Obtaining such a passport has been no easy task, but retaining it will be still more difficult. There are currently nearly 3,900 wood processing enterprises of all types across the nation, of which 95% are owned by the domestic private sector and foreign investors, with the State owning only 5%. Regarding the scale of capital investment, more than 93% of timber processing enterprises are considered to operate on a micro or small scale, 5.5% on a medium scale and only 1.2% on a large scale. Consequently, it is necessary to review and replan the organisation of timber processing facilities in line with export planning so as to ensure the quality of Vietnamese timber exports, especially those from micro- and small-scale enterprises. Moreover, it is necessary to improve the quality and design of wood products so as to suit both domestic and foreign customers’ tastes, while developing sustainable brand names and issuing certification for exports. Each region of the country should choose a wood processing village or business as its leader in gathering others to coordinate production and seek markets for their products, in addition to developing products to fit each market segment and promoting trade to stabilise and expand the market. Finally, to avoid using illegal wood sources and to mitigate risk in the production and consumption of wood products, businesses, producers and craft villages need to say “no” to illegal timber. They should also consult relevant organisations to actively explore the terms of the VPA and to make the necessary preparations to sign onto it in the near future. Standard Chartered PE pours US$40 million in Vietnamese lifestyle platform Standard Chartered Private Equity (SCPE), the private equity arm of Standard Chartered Bank, has poured $40 million into acquiring a significant minority stake in N Kid Corporation (N Kid), a Vietnamese lifestyle platform for kids and teenagers. The information was published on the website of BDA Partners, the exclusive financial advisor to N Kid. According to BDA Partners, N Kid selected SCPE as its preferred partner after several rounds of discussions. SCPE will bring invaluable operational expertise and wide-scale global network to the partnership. Proceeds from the transaction will be used as expansion capital to support the further roll-out of family entertainment centres and retail outlets across Vietnam, the expansion of distribution channels, and the development of new adjacent businesses. Established in 2009, N Kid is the leading integrated children’s lifestyle platform in Vietnam, with operations spanning across the distribution, and retail segments. The company now operates 30 family entertainment centres across the country under the brand names tiNiWorld and T-CLB, Phuong Nga Toys, mom and baby products distribution stores and altogether 20 Toyland and Babyland retail outlets. Meanwhile, SCPE provides companies with expansion capital as well as acquisition and management buy-out finances. It has invested over $6 billion in 100 companies worldwide. Pouring capital in N Kid marks SCPE’s second investment in Vietnam in the course of 2016. Earlier, in March, SCPE invested a combined $25 million in Vietnamese start-up M-Service, the operator of mobile e-wallet MoMo. In September 2014, SCPE spent $35 million to acquire a significant minority stake in Mekong Capital’s restaurant chain Golden Gate. Only two weeks later, it completed the purchase of another significant minority stake in An Giang Plant Protection JSC, a market leader in the Vietnamese agricultural sector. New loan packages for social housing Two new preferential loans, unrestricted by scale and deadline, for social housing and cheap commercial housing projects will be provided to low-income earners. The new packages are expected to continue the VND30 trillion housing stimulus package. Nguyen Tran Nam, chairman of Viet Nam Real Estate Association (VNREA) told the association’s meeting held earlier this week that the Law on Housing 2014 and Decree No 100/2015/ND-CP on social housing and cheap housing stipulates that capital for the two packages would come from commercial banks and the Viet Nam Bank for Social Policies. Commercial joint stock banks with controlling State stake-holdings would have to spend 3 per cent of their total outstanding loans for developers and buyers of social housing projects. The second source for loans for social housing projects would come from the Viet Nam Bank for Social Policies. The bank would use 50 per cent capital from the State budget and the moblise the remaining capital to provide loans for people to buy social housing with a maximum interest rate of 5 per cent. However, the policies have not taken effect yet as it was infeasible for commercial banks to set up a fund for loans for social housing projects. Most commercial banks have faced difficulties in providing preferential loans to social housing projects. Secondly, the Viet Nam Bank for Social Policies has not only focused on loans offered to low-income earners but other programmes such as agriculture, maritime economic development and supporting students. VNREA in June sent a document to the Prime Minister, State Bank of Viet Nam and the minister of Construction to ask for specific laws enforced to provide capital for social housing. The chairman affirmed that there would be money inflows in the social housing segment in 2017. VNREA targeted establishing a pilot property investment fund to have independent capital mobilisation for the market without depending on bank loans. It also proposed mechanisms and policies to encourage the development of social housing and cheap commercial housing segments with areas of less than 75sq.m and selling prices of less than VND15million per sq.m. The association suggested reducing VAT and corporate income tax to facilitate real estate firms to build cheap apartments. Several real estate firms and specialists said that the Government should have stable solutions to increase the supply of social housing and cheap housing projects. VNREA said there have seen negative signs in the estate market, especially the unbalanced housing structure. Up to 70 per cent of property products in the market are high-end apartments while most people need low and medium houses. It has been hard to create apartments with selling prices of less than VND20 million per sq.m in Ha Noi and HCM City. Since the end of VND30 trillion stimulus package, estate firms have not attention to social and cheap commercial housing. Nguyen Van Duc, deputy director of Dat Lanh Real Estate Company said thhat Government support in taxes, capital and administrative procedures were necessary for the development of social housing programmes. PM urges e-payment development Deputy Prime Minister Vu Duc Dam has said there is a need for all ministries and relevant agencies to co-ordinate and connect with specific policies to promote electronic payments. He said there was a need to minimise cash payment, and make e-payments compulsory while encouraging its use. Deputy PM Dam made the comment during a Viet Nam E-payment Forum on Thursday in Ha Noi to discuss three major topics that included combining efforts by Government departments to promote online tax collecting, tax payments and encouraging online payment in e-commerce and retail, promoting online payment in transport and the ability of connecting to other payment activities in Viet Nam, and opportunities and challenges facing Viet Nam’ banking sector brought by Fintech companies. The deputy PM said that currently Viet Nam had about 125,000 public services provided by the government and authorised agencies. Of these, only 1,200 services had implemented e-technology in their services. The Government has approved a master development plan of e-commerce from now until 2020. However, the implementation of e-payment is still limited and the habit of making cash payments was not easy to change, Dam told the forum. To promote e-payments, Bui Quang Tien, Director of the State Bank of Viet Nam (SBV)’s Payment System Department said the central bank has made many important recommendations by asking the Ministry of Finance to propose tax policies to encourage e-tax payment and e-payment in e-commerce development in retail shops. The SBV will complete a legal corridor and initiate policies to encourage e-payment via the automated clearinghouse (ACH) and ask National Payment Corporation of Vietnam (NAPAS) to build ACH system, and continue to complete financial switching system to promote and improve the efficiency of e-payment in e-commerce and e-tax payment. Lai Viet Anh, Deputy Head of Vietnam E-Commerce and Information Technology Agency (VECITA) said that 7 per cent of payments were made online in e-commerce. She said more efficient solutions should be envisaged apart from incentives to exempt or refund tax for businesses who use e-payment service. Instead of using administrative measures, the participation of intermediaries such as companies who provide intermediate e-payment services should be encouraged. When users recognised substantial benefits from e-payment service, they would automatically begin e-payment. Also at the forum, Nguyen Manh Thang Deputy Director of Directorate for Roads of Viet Nam, said that promoting online payment in transport was a need and toll collection without asking drivers to stop would benefit them in many ways. However, in Viet Nam, this plan was encountering problems. He attributed the problems to obsolete technology which was inconveniencing users and co-ordination between road project investors and authorised bodies was still poor. Nguyen Hong Truong, deputy minister of transport, said the transport sector had many services relating to e-payment. The transport ministry had conducted a roadmap for toll collection. It would make efforts to remove barriers at toll stations by 2019. The government recently has also asked his ministry to study post-paid electronic toll collection. Vu Quang Lam, from VETC Vietnam Joint Stock Company, said there were currently several types of e-payment smart cards for toll collection. Drivers should only have only one type of smart card thus making it easy for them. Truong said in time to come, there will be only one kind of smart card for toll collection which would make it convenient for users. At the forum, Truong Gia Binh CEO of FPT Corporation proposed four solutions to the Government and relevant ministries to improve e-payment in toll collection. He wanted the government to soon issue regulations and a roadmap for users to implement compulsory e-payment in toll collection and payment in public transport. The Ministry of Transport and local authorities have been asked to work with the SBV to soon have a standard e-payment solution with the ability of connecting to other payment activities in the public sector to avoid wasting resources. The Ministry of Transport has been requested to instruct relevant bodies to agree sharing revenues from toll collection between Build-Operate-Transfer (BOT) investors and Build-Own-Operate (BOO) investors so as to spur the development of automatic electronic toll collection nationwide. The SBV and Ministry of Transport have been asked to offer incentives and enhance mass media to boost e-payment in transport. Jewellery market shines ahead of year-end festive season Tran Thi Lam of HCM City has come to a Sai Gon Jewellry Company showroom to buy rings. Her son is set to get married and she is studying the market and prices. There are many collections and designs, and she loves one of the latter, but since the prices are too high she is considering more, she says. The year-end is the wedding season and Lam’s family is one of many to celebrate a wedding this year by buying jewellery, mostly gold. The year-end is also a time of festivals and people like to buy jewels for their relatives and friends. Demand for jewellery in HCM City is sharply up already. A jeweller in District 1 said in fact demand started to rise in the middle of last month. Jewellery shops in districts 1 and Thu Duc said to meet the year-end demand they have introduced new designs and collections. A Sai Gon Jewelry Company (SJC) spokesperson too said the company has added many new products and collections. Ten new collections have been introduced at prices of VND60-100 million (US$2,700-4,500), she told Sai Gon Tiep Thi newspaper. Bracelets, necklaces, rings and other jewels costing VND5-20 million ($220-800) have also been launched, she said. She revealed sales had surged this year compared with the last, reaching VND300 billion in the first 10 months, nearly double that of last year. She expected the sharp rise to continue through the end of the year. Ho Thanh Tuan, director of Hoang Gia Pearl, said in the last three months his company has launched 30 new collections with nearly 300 designs. The pearl jewellery market in Viet Nam has grown strongly, he said. The fact that it is not just older people but also young ones who now like pearl jewels is pushing up the market, he told Sai Gon Tiep Th?. HCM City’s trade pacts with provinces a success A trade co-operation programme between HCM City and other cities and provinces over the last five years has significantly improved product quality, met consumer demand and promoted socio-economic development, city officials have said. Begun in 2011, the programme focuses on providing information on authorities’ oversight of commerce, supports firms in creating links in production and distribution, strengthens oversight to ensure product quality, and improves human resources training. Speaking at a conference in HCM City yesterday, Nguy?n Qu?nh Trang, deputy director of the Department of Industry and Trade, said the programme had helped HCM City distributors and retailers find suppliers of quality products, including regional speciality products. It has also helped manufacturers find steady outlets for their products and feel secure about investing more in expansion and improving product quality. More businesses have signed up for the programme, with 1,349 contracts worth more than VNÐ22.13 trillion (US$977.1 million) signed as of last month, she said. HCM City firms had bought goods worth VNÐ15.49 trillion ($684.2 million) and sold VNÐ6.63 trillion of goods.. The event this year for the first time attracted the participation of businesses from the northern provinces of Hà Giang and Hòa Bình. Vu Th? Thu Hà, deputy director of Kim Bôi Agro-Forestry Joint Stock Company in Hòa Bình Province, said many specialities of the northwest region like n?m huong (thin top-mushroom), n?m mèo (wood-ear mushroom) and táo mèo (an apple-like fruit) were sold only in supermarkets and restaurants in the north. “I hope that via this event, we can distribute these products in HCM City,” she said. “Consumers in HCM City as well as in southern provinces should feel secure when using our products, which meet hygiene and food safety standards.” Nguy?n Th? Thu Th?y, deputy general director of Saigon Co.op, said her company regularly participated in matching supply/demand events in an aim to find quality and regional special products for its retail chain. Lê Thanh Liêm, deputy chairman of the HCM City People’s Committee, said the city had huge demand for many kinds of products like fruits and vegetables, pork and seafood, but could only meet 20-30 per cent of demand. The city has signed co-operation agreements with many provinces, including Lâm Ð?ng, Ð?ng Nai, Ti?n Giang, Long An, Kiên Giang and Bà R?a-Vung Tàu to ensure supply of goods to the city market, especially during T?t (Lunar New Year) when demand jumps by 20-30 per cent, he said. Deputy Minister of Industry and Trade H? Th? Kim Thoa urged HCM City to expand the co-operation model to other places, and said she hoped more businesses would join the programme to increase the supply of quality goods. Despite achievements, the programme has some shortcomings, including 187 principal contracts that either have not been implemented or have been carried out ineffectively. Trang of the Department of Industry and Trade said the weaknesses were caused by various factors, including not meeting retailers’ demand and failing to negotiate discount rates and payment methods. Ph?m Thành Kiên, director of the HCM City Department of Industry and Trade, said the department would continue to co-operate with its counterparts in other cities and provinces to exchange information about supply/demand connection programmes, and support firms in creating links in production and distribution, as well as strengthen inspections to secure product quality. He urged businesses to focus more on developing their material zones to ensure consumer access through more supply and expand.distribution networks. At the event, 369 contracts were signed between distributors, export companies and eateries in the city, as well as specialty manufacturing establishments and agricultural co-operatives, among others. Nearly 1,000 producers, distributors, wholesale markets, restaurants, hotels, banks and eateries from 38 provinces and cities took part in the two-day event, which included an exhibition featuring more than 350 booths displaying products of different regions in the country. Dry ports to reduce traffic jams HCM City has proposed the construction of two dry ports in the city’s High-tech Park in District 9 and Ðông Nam Industrial Park in C? Chi District. The port in the High-tech Park will be 10ha in area with an expected capacity of 150,000teu by 2020. The one in the Ðông Nam Industrial Park will be built on a 6ha area. Lê Thành Ð?i, deputy head of the High-tech Park’s management board said that since there were some 800 containers travelling from the park to the Cát Lái port in District 2 everyday, the new inland port will not only serve the activities of the park but also help reduce congestion between the two destinations. Lê Hoàng Minh, deputy director of the city’s transport department, said that the new port in Ðông Nam Industrial Park will reduce the pressure of inland goods delivery for the park and the Tây B?c Industrial Park. It will also help facilitate the goods delivering process from the South-eastern provinces of Tây Ninh, Bình Phu?c and Bình Duong to the Sài Gòn River, he said. There are currently 11 dry ports connecting the Vung Tàu sea port with the city, 7 of which are located in the city. The construction of a new flyover was started yesterday as part of the city’s efforts to reduce traffic jams. The flyover costs some VNÐ169 billion (US$7.4 million), connecting the Nguy?n Van C? flyover with Võ Van Ki?t street. It will help facilitate traffic from districts 1, 4, 5, 7, and 8 to the southern area of the city and vice versa, according to the management centre of the Saigon River Tunnel. VN tops Asia in relationship fulfillment Vi?t Nam ranks first out of 10 Asian countries surveyed in relationship satisfaction, according to the inaugural Prudential Relationship Index, the first of its kind in Asia, which was released in HCM City on Wednesday. The score for Vi?t Nam, taking into account all relationships, not only spousal, is 83/100. It means in Vi?t Nam people’s primary relationships fulfil 83 per cent of their desired relationship needs on average. The survey lists the keys to a good relationship - being easy to get along with (77 per cent), being fun (71 per cent), having similar lifestyles (65 per cent), respecting individuality (63 per cent) and having compatible personalities (61 per cent). Vietnamese have fewer arguments with their spouses than in any other country. More than anywhere else, husbands and wives join hands to resolve financial issues. Up to 79 per cent of married Vietnamese have joint bank accounts. The digital technology revolution has greatly affected to relationships in Vi?t Nam, with couples and even parents preferring their mobile phones rather than talking to family members. Thirty two per cent of Vietnamese couples said one of the reasons for arguments is their partners spending too much time on mobile phones and computers. Vietnamese are likely to have better relationships with their children than with parents or friends, and score 58/100, the second highest in Asia. The average relationship score for adults and their parents is 52/100. With best friends, it is 49/100. In Asia, Vietnamese parents most want to enjoy the companionship of their children, with 97 per cent thinking that frequent interaction is one of the most importance aspects in an ideal relationship with children. They are less likely to get angry with their children than parents in other countries. The index surveyed 5,000 respondents aged 25 to 55 in Cambodia, China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Thailand, and Vi?t Nam in July. In Vi?t Nam, 500 were polled. But Phuong Ti?n Minh, CMO of Prudential Vietnam, said despite ranking high in relationship fulfilment, in Vi?t Nam “gaps are also present in the level of relationship satisfaction, with family demands, financial uncertainty and technology causing rising tension and stress.” Binh Dinh approves VND31 billion for Tet food stabilisation The People’s Committee of Binh Dinh Province has approved a VND31 billion fund to stabilise prices of essential goods during Tet festival 2017. This was announced by Man Ngoc Ly, director of Binh Dinh Department of Industry and Trade. The fund is aimed at achieving domestic price stabilisation for the products. It is used to avoid sudden increases in prices of the products and avoiding speculation and price increases, especially in the province, he said. It will also supply essential goods for people in mountain and remote areas during the Tet festival. These included rice, sugar, confectionery, cooking oil, fish sauce, in addition to meat, eggs, vegetables and various fruit. Those goods must meet standards on quality, food hygiene and safety, as well as have quarantine certificates from relevant offices. Further, companies must sell goods at prices 3 to 8 per cent lower than market prices. This year, the companies that accept loans from the provincial stabilisation fund include Sai Gon Co.op Binh Dinh Co. Ltd – owner of Co.op mart Quy Nhơn and Co.op mart An Nhon, the Anh Nhat Import-Export Manufacture and Trade Limited Company in Quy Nhon, addition to three good suppliers including Van Canh JSC, Vinh Thanh JSC and An Lao JSC. The three-month price stabilisation programme will start on December 15, 2016 and continue until March 15, 2017. Petro Vietnam takes credit loans for power project Vietnam National Oil and Gas Group (PetroVietnam) on November 23 signed a contract with the Export-Import Bank of Korea (Korea Eximbank) for funding the Song Hau 1 thermal power project. Under the contract, PetroVietnam is also taking loans from nine other foreign commercial banks, in an arrangement made by Citibank US. The contract is valued at US$1.2 billion, with credit insurance provided by the Korea Trade Insurance Corporation (K-Sure) and the Korean export credit contract provided by Korea Eximbank. The project requires a total investment of $2.05 billion, of which 70 per cent, an estimated $1.43 billion, will be in loans. PetroVietnam has arranged for a Korean export credit agency loan of $987 million with a 17-year term, and another international trade loan of S213 million that has a 10-year term. Young-Pyo Hong, deputy president of Korea Eximbank, expressed his confidence in the project at the signing ceremony, while Nguyen Vu Truong Son, general director of Petro Vietnam, appreciated the co-operation between his company and foreign banks. The Song Hau 1 thermal plant project, with the capacity to generate 1,200MW (with two units of 600MW), will be spread over 115 hectares in southern Hau Giang Province. One of the key projects approved by the prime minister, it is part of the national power master plan VII, which aims to construct power plants between 2013 and 2020 to meet the rising demand in southern Viet Nam. PetroVietnam’s experience with major power projects such as Vung Ang 1, Thai Binh 2, Ca Mau 1 and 2, Nhon Trach 1 has helped it successfully negotiate and arrange loans with international banks within a period of one year. Sơn and Hong expressed hope that in the future, PetroVietnam and Korea Eximbank would have the opportunity to work together. Completed on time, this project will provide Việt Nam with much-needed electricity and contribute to regional economic development. Also present at the ceremony were members of PetroVietnam’s board of directors, representatives from the Song Hau 1 power project management board and officials from Korean Eximbank, K-Sure and Citibank. Credit growth in Hà Nội rises 15.6% Outstanding loans of Hà Nội-credit institutions are estimated to touch VNĐ1.43 trillion (US$63.27 million) by the end of November, up 15.6 per cent since last December, reveals the latest report by Hà Nội Statistics Office. Compared with last month, the loans rose 2.2 per cent. Of the total, short-term loans rose 12 per cent, while medium- and long-term loans surged by 20.4 per cent. Despite a decreasing deposit interest rate, by the end of November, the city’s credit institutions are estimated to have mobilised a total capital of VNĐ1.64 trillion, up 11.2 per cent against last December. The Hà Nội Statistics Office also reported that the capital city’s export turnover in November is estimated to reach $901 million, up 15.5 per cent against the same period last year. The city’s total export turnover in the past 11 months rose 12 per cent year-on-year to $9.685 billion. In November, the capital spent $2.258 billion on imports, bringing the total import value in the past 11 months to $22.281 billion, down 4.6 per cent against the same period last year. Hà Nội’s trade deficit in the past 11 months stood at $12.596 billion, the report noted. Hà Nội to host January online financial fair Consumers who seek information about financial and insurance services can receive advice from service providers at the Online FinFair Việt Nam Week from January 3 to 7, 2017. Customers will be able to access www.thebank.vn to chat online with advisers or watch video clips introducing products and services, as well as attend online conferences, said Phạm Thanh Hà, director of the Megalink Joint Stock Company – one of the event’s organisers. The online fair, the first of its kind, is expected to link 30 service providers, including commercial banks, life and non-life insurance companies, and financial firms, with one million consumers. Five workshops discussing issues about life insurance, health insurance, credit cards, collateral lending and trust lending will also be held. The Online FinFair Việt Nam 2017 will be organised by Samo Communications and Technology Company, in collaboration with the Megalink Joint Stock Company and the Hà Nội Information Technology and Communication Transaction Centre. The online fair is being sponsored by the Việt Nam Internet Association and the Hà Nội Association for Communication and Public Relations (HANICA). Vietnam holds successful trade seminar in Czech Republic A seminar on investment and business opportunities in Vietnam attended by dozens of entrepreneurs and government representatives was held on November 23 in Prague by Ambassador to the Czech Republic Truong Manh Son. Ambassador Son opened the seminar by emphasizing the readiness of the Embassy and the Vietnam Ministry of Industry and Trade to promote the collaboration of enterprises and institutions in both countries. The Ambassador reminded the gathering that after more than six decades of mutual diplomatic and trade relations between both countries, Vietnam is still a country of high economic growth and good investment opportunities. He told those in attendance that he considered the seminar an excellent opportunity to further deepen the existing collaboration between businesses and institutions of both countries considering the upcoming Vietnam-EU free trade agreement that will come into effect in 2018. In addition, he mentioned that total commercial trade between the two countries has remained much too modest and only amounted to a fraction of its potential, noting that the total exports and imports of Vietnam with the Czech Republic amounted to just US$755 million in 2015. vietnam holds successful trade seminar in czech republic hinh 1 In his speech, Vietnam Ambassador Son stressed the benefits of the coming trade pact and the positive developments he expects it will have on bilateral trade and talked specifically about segments of the economy of the greatest interest for the business community of Czechoslovakia. Czech entrepreneurs in attendance in turn told the Ambassador that they had an interest in the automotive industry, medical and pharmaceuticals, agriculture, food, energy and construction in Vietnam. During the second part of the seminar the Ambassador and entrepreneurs had the opportunity to discuss the possibilities of collaboration and business and investment opportunities the Czech Republic offers Vietnamese companies. CNS inks strategic partnership with card developer Saigon Industry Corporation (CNS) has announced its strategic partnership with NXP Semiconductor to supply smart cards and solutions related to security cards. Under the partnership, the Dutch card manufacturer will offer and assist CNS in the development of new-generation smart card solutions. Chu Tien Dung, general director of CNS, said, “CNS is adopting solutions for the development of IC products in collaboration with foreign partners, including NXP. We are also working with many developers of cards, card readers and non-cash payment solutions. These are the contributors to the building of our IC factory in the city in the future.” In addition, CNS aims to become a supplier of IC products, solutions and applications integrated with smart cards, security control cards and membership cards. Together with NXP, CNS will carry out many projects of smart city and smart government, responding to the strategic development of the Internet of Things in Vietnam. On this occasion, CNS also signed cooperation agreements with many other partners including card developers like VietCard, SmartWorld, Greentech and WireCard, to jointly offer solutions and applications for various fields like education, healthcare, and transport. The IC factory of CNS will go up in the Saigon High-Tech Park in HCMC’s District 9. This is the “core” of the IC development program in the city with estimated investment of VND6.6 trillion. The facility is designed with a capacity of some 5,000-10,000 semiconductor wafers per month. With the use of locally-produced IC, electronic and telecommunications products made in Vietnam may have their added value increase by 15-30%. Vietnam ministry defends computerized lottery against traditional rival The newly-launched American-style computerized lottery in Vietnam is running with transparency and doing no harm to its traditional counterpart, the Ministry of Finance asserted on November 23. In July, Vietlott, a company fully owned by the finance ministry, introduced its Mega 6/45 computerized lottery, with the jackpot initially set at VND12 billion (US$537,600). The jackpot is rolled over if no winner is found. The computerized lottery is a result of cooperation between Vietlott and an indirect subsidiary of Malaysia-based firm Berjaya Corp Bhd (BCorp), which was granted an 18-year investment license to operate the computerized lottery in the country in January. Vietlott has since found four jackpot winners, with the respective pretax prizes of VND56.1 billion (US$2.48 million), VND71 billion (US$3.17 million), VND65 billion (US$2.9 million) and VND92 billion (US$4.11 million). With three jackpots having been won this month alone, while the jackpot probability is one in 8.1 million, the computerized lottery has come under suspicion over its transparency. It has also been blasted by traditional lottery companies, who say the new lottery is eating up their market share, especially in southern Vietnam. The traditional lottery has a top prize of only VND1.5 billion (US$67,000), with 21 lottery companies operating in southern Vietnam recently announcing a joint plan to raise the prize to VND2 billion (US$89,300) next year. All of those issues around the new kind of lottery were addressed at a media meeting held on Wednesday by the finance ministry at its headquarters in Hanoi. The ministry has indeed received a number of questions from the press regarding the operation of the computerized lottery. One of the questions was why a foreign partner is allowed to jointly run the computerized lottery, whereas the law says that lottery is a service exclusive to the state. In response, Vietlott deputy CEO Nguyen Thanh Dam said Berjaya Corp is only indirectly cooperating with Vietlott through its local subsidiary Berjaya Gia Thinh Corp, under a business cooperation contract (BCC) worth some US$210.58 million. Dam claimed the BCC between Vietlott and Berjaya has nothing to do with the equity of the company, which is still 100 percent owned by the finance ministry, adding that the foreign partner is only in charge of equipment investment and procurement in the joint venture. “By the time Vietlott was launched in Vietnam, not a single local manufacturer had been able to produce the machines, equipment and technology solutions needed to run the computerized lottery,” Dam said. Nguyen Hoang Duong, deputy head of the finance and banking bureau under the finance ministry, also said the ministry had to partner with a foreign entity to run the computerized lottery because “Vietnam is inexperienced in this new business model.” “The cooperation helps Vietnam leverage the experience and technology of the foreign partner as well as sharing losses if the business proves unsuccessful,” Duong said, adding that the finance ministry obtained government approval for the partnership in 2011. Duong, however, refused to disclose the share of revenue the Malaysian partner enjoys from the Vietnamese business, saying it is “confidential information both sides have agreed not to make public.” As per current law, traditional lottery companies have to give 100 percent of their revenue to the budget of the local administrations where they are based. Duong said Vietlott will do the same, but in a different manner. “Vietlott is required to pay a 15% excise tax and a 10% value-added tax,” he said. “After excluding these taxes and tax-deductible expenses, the company will continue paying a 20% corporate income tariff for the remaining revenue.” Duong said Vietlott will also contribute the post-tax revenue to the local budget of the provinces or cities its agents are based. The company is present in nine cities and provinces, including Ho Chi Minh City, Can Tho City, An Giang Province, Binh Duong Province, Dong Nai Province, Ba Ria-Vung Tau Province, Khanh Hoa Province, Dak Lak Province, and Da Nang City. Vietlott raked in VND734.4 billion (US$32.79 million) in revenue between July 18 and November 20, and has paid its winners a total of VND226 billion (US$10.09 million), according to Duong. The company’s tax payment had topped VND85.5 billion (US$3.82 million) as of the end of last month. Addressing concerns that Vietlott would ‘steal’ buyers from the traditional lottery, Duong said the computerized lottery in fact “has little impact” on its well-developing traditional counterpart. “Twenty-one traditional lottery companies in southern Vietnam post a collective revenue of VND240 billion [$10.71 million] a day, while Vietlott sells only four million tickets per draw,” Duong said. The Vietlott jackpot combination is randomly selected every Wednesday, Friday, and Sunday. With the computerized lottery fetching VND10,000 each, the revenue in its each selection is VND40 billion ($1.79 million). “Vietnam’s lottery sector is estimated to rake in VND75 trillion [$3.35 billion] this year, and computerized lotteries only account for 1.3 percent of the total figure,” Duong concluded. Vietnamese fruit sent to tough markets Vietnam exported nearly 10,000 tonnes of fresh fruit to choosy markets such as the United States, Canada, the Republic of Korea and Japan in the first 10 months of this year. This export volume doubled the figure from the whole of last year. According to Director of the Ministry of Agriculture and Rural Development’s Plant Protection Department Hoang Trung, some 5,100 tonnes of dragon fruit and 1,550 tonnes of mango were shipped to these countries. The United States led the import of Vietnamese fruit, with 2,600 tonnes of dragon fruit and 1,200 tonnes of mango, followed by Japan, Canada and the Republic of Korea. The country exported nearly 2.1 million tonnes of fruit and vegetables, making a turnover of some 2 billion USD during the period. Meanwhile, it imported nearly 420,000 tonnes of fresh fruit. Trung said his department was conducting an experimental project on exterminating fly disease on red dragon fruit, following the requirements of Japan. Japan will officially open its doors to the Vietnamese fruit by early 2017. Vietnam expects to increase its exports to Australia and Taiwan in the future, after the two markets begin allowing businesses to import Vietnamese fresh mango and dragon fruit, respectively, this year. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR |
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If TPP is dead, the US, not Vietnam, will suffer: analysts If the Trans Pacific Partnership (TPP) agreement fails, Vietnam will miss an opportunity which can help it boost growth, but this would not have a negative impact on the national economy, analysts say.  US President-elect Donald Trump has confirmed his strong opposition to TPP, stating that he will ditch the TPP trade deal on day one of his presidency, describing TPP as a ‘potential disaster’ for the US. Dr Phan Minh Ngoc, a renowned analyst, commented that TPP was a ‘plus’ for Vietnam’s economy because it would boost exports and growth. If TPP is ratified, Vietnam may see GDP growth rate rising from 6.2 percent to 7 percent. And if TPP fails, the growth rate will still be at 6.2 percent and will not decrease. “It won’t be a disaster or a negative factor if TPP is rejected. It won’t cause Vietnam to lag behind in its development path,” he said. Le Quoc Phuong, deputy director of the Industry & Trade Information Center under the Ministry of Industry and Trade, said Trump’s presidency could lead to US protectionism. However, he said even without TPP, Vietnam will be able to boost exports to the US, if Vietnamese products are highly competitive and have high quality. The US is now the largest export market for Vietnam, making up 20 percent of total exports. Another expert was cautious when talking about TPP. “TPP will help create more markets for Vietnam’s products. But I am afraid that Vietnam still has not prepared well for the agreement,” he said. “This happened with the ASEAN-China Free Trade Agreement (ACFTA). The deeper the integration is, the bigger trade deficit with China we suffer,” he said. “As for WTO, we did not take full advantage of the opportunities after joining the large playing field. Meanwhile, opportunities have become challenges. This will repeat with TPP membership if we cannot prepare well for it,” he said. In other words, the magnitude of the effects to be caused by the TPP will still depend on how Vietnam is ready to optimize benefits from the agreement. The head of the Vietnam Institute for Economic & Policy Research (VEPR) believes the new US leaders and Congress won’t give up on the TPP so easily, because it is the US and its alliances, not Vietnam, that will suffer the most if it is not ratified. Kim Chi, VNN |
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Social News 27/11 Poor harvest expected of off-season mangos Farmers who grow mangos in the off-season in the Cửu Long (Mekong) Delta are expecting a poor harvest as prolonged rains have affected fruit production. Advanced techniques and chemicals have been used to induce mango trees to bloom so they can produce fruit for the Christmas and Tết (Lunar New Year) seasons. In Hậu Giang Province, many farmers treated their Hoà Lộc mango trees to bloom in early September, but rains affected the flower production. Hoà Lộc mango is one of the delta’s specialty fruits which are in high demand, especially during major festivals. It takes about three months to harvest ripe mangos. Trần Văn Quang, who has 0.5ha of Hoà Lộc mango in Châu Thành A District’s Tân Hoà Commune in the province, said that 100 of his mango trees did not bear fruit after blooming because of prolonged rains. The trees would have yielded seven to eight tonnes of fruit. “We sprayed chemicals, but it did not work,” he said. Quang said he has spent more than VNĐ20 million (US$900) to buy chemicals to spray his mango trees. Đinh Văn Phương, who has 10ha of mango and has grown the fruit for 23 years in Châu Thành A’s Bảy Ngàn Town, said he had treated 800 mango trees to have off-season flowers that could be harvested at Christmas. However, the yield was low. Phương said his family would lose about 20 tonnes of mango, or about VNĐ400 million ($18,100), when the harvest comes. Đặng Kiểm, head of the Châu Thành A Plant Protection Station, said in recent years mango farmers had grown off-season mangos to meet market demand and sell mangos at a high price for Christmas and Tết. “Mango orchard owners are expected a yield decline of 40-50 per cent in the off-season harvest,” he said. In previous years, farmers in the district harvested an average of five tonnes per ha of mango for Christmas, he said. This year, district farmers have treated about 145 ha of mangos to produce fruit to sell during Christmas. With an estimated yield loss of about 50 per cent, farmers will lose more than 350 tonnes of mango. In Đồng Tháp Province, which is the delta’s largest mango producer, prolonged rains and hoar frost caused off-season mango blooms to fail to bear fruit. In addition, many young off-season fruits withered and fell off the trees. Đồng Tháp’s mango supply for the coming Tết, which will fall in January, is estimated to be fall by 60-70 per cent compared to the last Tết, according to the province’s mango orchard owners. Đồng Tháp has more than 9,300ha of mango, with annual output of about 90,000 tonnes. Erosion hurts agriculture, livelihoods in Hà Tĩnh Severe erosion along the left bank of Ngàn Sâu River in central Hà Tĩnh Province has affected the lives and livelihoods of around 1,200 residents in the region. Nguyễn Văn Việt, deputy chairman of the province’s Hương Khê District, said there is severe erosion at 19 spots along the 20km river bank that runs through the district. Lê Quang Vinh from the district’s agriculture and rural development division said erosion has affected the lives of 1,200 people in the district as well as crops and farming in the region. While erosion began several years ago, it has become severe, akin to landslides, after the repeated floods in October and early November, Việt told local newspapers. Hương Thủy Commune is the most severely affected by the erosion. Here, water has come four metres inland, claiming the land and soil of 370 families. Lê Xuân Định, a commune official, said there are landslides daily and they seem to be increasing. In Lộc Yên Commune, strong currents swept away the bamboo fence, which served as a dyke and prevented soil erosion. Now, the commune’s main road has eroded and is only half its original width. Đặng Thị Tuyết, a local resident, said the water is coming closer and closer to her house. Similarly, every day, thousands of residents in Hà Linh Commune use a road that has become dangerous after more than half of it collapsed into the river. Locals have put up signboards warning people from falling as much as five metres down. Erosion has also weakened the pillars of a suspended bridge and residents said they feel unsafe on it. There have been landslides in other communes such as Hương Đô and Hương Trạch as well. Vinh said the district People’s Committee has proposed the construction of a dyke at the erosion spots. That, however, is just an emergency solution, he said. The long-term solution is for local authorities to stop the power plant located on upper Ngàn Sâu River from releasing huge volumes water at one go, he said, adding that their other important task is to stop the illegal dredging of sand and rocks from the riverbed. Central city suspends illegal construction of trading project  Đà Nẵng’s Construction Department temporarily suspended construction of a 33-storey trading centre and apartment project in the city’s downtown area as the investor has not yet been given permission from the department. The department said in statement that the project, which was granted an investment licence in 2010, has been under the process of design assessment by the Ministry of Construction. Deputy director of the department, Nguyễn Văn Nam said the project’s owner, Vũ Châu Long Real Estate joint-stock company, intentionally started construction from September, and was given a fine of VNĐ40 million (US$1,800) from the department’s inspection division for illegal construction. However, the project did not stop construction after that, and it had completed three-storey buildings. No supervision actions were given by local inspection agencies or administration in curbing the on-going construction of the project, just 1km from the city’s administrative centre. Earlier this week, the city assigned the department and Hải Châu District’s People’s Committee to ban all vehicles and labourers from working on the project. The slow action in curbing the illegal construction of a big project in the city’s downtown area revealed poor management and supervision from the city’s grassroots and construction department. According to the city’s Planning and Investment Department, the project was registered with total investment of VNĐ2.5 trillion ($111 million). In 2015, the city revoked two delayed development projects – a public park and an underground car park – in the city’s downtown area. In a survey, the city listed 30 slow-moving projects. Chinese passengers caught stealing from luggage on flight A Chinese passenger was caught this morning after allegedly attempting to steal another passenger’s luggage on board a flight from Đà Nẵng to HCM City. According to the Southern Airports Authority, the Chinese passenger used a nail clipper to try to cut the lock of a luggage in the overhead compartment. He was thwarted by a flight attendant. The flight crew reported the incident with witnesses from other passengers on board. When the flight landed in Tân Sơn Nhất airport, he was handed over to the Southern Airport Authority. The luggage reportedly contained jewelry and money worth billions of đồng. Vietnam Airlines has warned its passengers to keep an eye on their luggage to prevent theft. Two police dismissed from duty for wrongful action The Đồng Nai Province Police have decided to dismiss two officers of the Nhơn Trạch District Police from their duties for the wrongful arrest of a local woman. Colonel Nguyễn Văn Thọ, head of the Advisor Division and spokesman of the provincial police, made the announcement today. The two police officers are Senior Lieutenant-Colonel Trương Quốc Hiếu, deputy head of the Nhơn Trạch District Police, and Major Nguyễn Văn Sơn, deputy head of the district police’s investigation police team. After receiving the notice of dismissal, Hiếu also received the decision on retirement. In April, Nguyễn Thị Ánh Ngọc, a resident of Phước An Commune, Nhơn Trạch District, reported to police that she and her family had been beaten by several forest managers. Ngọc was then temporarily seized for opposing the authorities on duty. However, investigations showed that this action was without justification. The Nhơn Trạch District People’s Procuracy made a formal public apology to Ngọc. Culture fest showcases best of Korea  Some of the best of Korean culture will be presented to the Vietnamese public from tonight until Saturday in Hà Nội on the occasion of the Korean Cultural Festival to celebrate the 10th anniversary of the establishment of Korean Cultural Centre (KCC) in Việt Nam. “Our cultural centre will continue to be a bridge connecting peoples from the two countries, as it has done for the last 10 years, and will do for many years to come,” said Lee Dae Joong, KCC’s director. “I hope that this festival will help to further strengthen cultural exchange between the two countries,” he said. The event is expected to be an ideal occasion for the people-loving cultures of South Korea and Việt Nam to share their joy and love through art performances, and gastronomy. The festival, with the theme “Heart to heart” will feature performances by famous Korean artists. They include K-Tigers group, which is known for making dance cover videos of famous K-Pop songs and incorporating Taekwondo moves in the dances. Magician Kim Jong Soo will entertain the public with his magical tricks. The festival will also offer the public an opportunity to enjoy different kinds of Korean music, from Arirang (symphony orchestra music), to traditional music, and K-pop music (a modern form of South Korean pop music covering a range of styles including dance-pop, pop ballad, electro-pop, and hip hop). The opening ceremony of the festival will be for limited invitees. However, the festival on Saturday will open free of charge to the public from 1pm at the Cultural Friendship Palace located at 91 Trần Hưng Đạo Street in Hà Nội. The public can meet the Korean artists and visit interesting stands featuring Korean culture such as hanbok (Korea traditional dress) and hanji (traditional Korean paper), and Korean gastronomy. In particular, the performance of Korean movie music star K-will with Vietnamese singers will close this festival at 6.30pm. The KCC in Việt Nam is the first Korean Cultural Centre, which is set up in Southeast Asia aiming to connect people of the two countries through exchange activities in the cultural sector, sport, and tourism. Over the last ten years, the two countries have had strong relations in all sectors. Korean culture has become popular to Vietnamese people through its gastronomic specialities and movies. Actually there are currently 150,000 Koreans living in Việt Nam. Đồng Sài dump affects lives of local residents Residents of Phù Lãng Commune in the northern province of Bắc Ninh’s Quế Võ District claimed that the heavy pollution from the Đồng Sài garbage dump has badly affected their life. Trọng Ngọc, a local resident, said they have to suffer the stink emanating from the dump all year round. “Since the dump spread over 39ha was became operational in 2014, residents have to wear masks even inside their homes and need to keep their windows shut to avoid the polluted air,” he told the Lao động (Labour) newspaper. Runoff from the dump also polluted canals around the commune. To make matters worse, the dump has caught fire many times, releasing toxic gases with the smell lasting several days, he said. The three communes near the dump, Phù Lương, Ngọc Xá of Quế Võ District and Thắng Cương of Bắc Giang Province’s Yên Dũng District, also suffer from the severe air pollution. Nguyễn Thị Tâm, who lives in the Thắng Cương Commune, said their lives have been turned topsy turvy after the garbage dump came up. “We have not been able to sleep well or have a good meal as we are forever hounded by millions of annoying flies and the stink from the site,” she told the Tiền Phong (Vanguard) newspaper. Data compiled by the commune’s healthcare office showed respiratory diseases have been on the increase in the past two years. A number of families have moved away to avoid the pollution. According to Nguyễn Ngọc Lân, the chairman of the Thắng Cương Commune’s People’s Committee, residents and local authorities have complained about the pollution caused by the dump many times but nothing has been done to improve the situation. National Judo Champs to open in Bắc Ninh The National Judo Championships will take place in the northern province of Bắc Ninh today. The tournament draws over 150 martial artists from many cities and provinces, including Hà Nội, HCM City, Hải Phòng and Thanh Hóa. Male martial artists will compete in eight categories including U55, U60, U73, U90, U100 and over 100kg. Female athletes will compete in eight divisions including U57, U63, U70. The event’s best atheletes will be selected to the national team to compete in upcoming tournaments. It will close on November 28. Quảng Bình to promote tourism on TripAdvisor  Quảng Bình authorities have unveiled plans to advertise the province’s tourism on TripAdvisor next year. Trần Tiến Dũng, deputy chairman of the People’s Committee, said last week that agreement had been reached with TripAdvisor for promoting the province’s tourist industry on the travel website. There has been little international advertising for Quảng Bình so far due to limited budgets, resulting in small numbers of international travellers, Dũng added. Local artist unveils flooding season themed photo exhibition “An Giang in flooding season” is a photo exhibition by artist Huynh Phuc Hau currently on display at Tinh Te Café in HCMC’s District 3 until December 3. Hau has a strong desire in taking landscape photos and he aims to feature the unique beauty of Chau Doc and Tinh Bien areas in the Mekong Delta province of An Giang in the flooding season. The exhibition features 39 of Hau’s artworks which had been taken during the past 12 years, depicting the nature, people’s portraits and daily activities of people during the flooding season. Apart from the exhibition, the artist also publishes a landscape photo calendar to raise funds for poor patients at a general hospital of An Giang. Huynh Phuc Hau is an ultrasound-scan doctor in Chau Doc City in An Giang Province. He was named the photography artist of Vietnam in 2009. Tinh Te Café is located at 209 Nam Ky Khoi Nghia Street in District 3, HCMC. HCM City farmers provided loans, farming techniques More than 138,000 farmers in HCM City have been awarded the title of “Excellent farmers in production and doing business”, part of a programme that recognises their outstanding contributions to the agriculture sector over the past five years, according to the city’s Farmers Association. The programme has helped more than 9,700 farming households escape poverty. During the period, more than 90,000 farmers have also been provided loans worth a total of about VNĐ2.74 trillion (US$125 million) to develop their production and business. In addition, more than 2,200 training courses have been organised to provide advanced farming techniques for farmers. Under the programme, farmers have also donated more than 200 ha of land to build infrastructure and upgrade rural roads. Speaking at a meeting to review the programme for 2012-2016 held last Friday, Liều Vũ Điều, deputy chairman of the Standing Central Committee of the Việt Nam Farmers Association, told the city’s Farmers Association to continue renovating the content, form and organisation of the programme to promote it further. The city’s Farmers Association should highlight exemplary individuals and groups of the programme to let other farmers learn from them, he said. Lê Thanh Liêm, deputy chairman of the municipal People’s Committee, said the city’s Farmers Association should continue co-operating with departments and agencies to develop agriculture and rural areas. Trần Thu Bích, head of the city’s Department of Science and Technology’s Science and Technology Management Division, said the department would carry out several programmes to transfer advanced technologies for the city’s agriculture sector in the future. Over the past five years, the department, in co-operation with the city’s Farmers Association, has provided training for nearly 2,000 farmers for trade mark registration, animal waste treatment, safe use of fertilisers and pesticides, advanced techniques in aquaculture and cow breeding. Many effective agriculture production models, including breeding ornamental fishes and cows and growing mushrooms in houses, are expanding in the city. The city has established 83 excellent farmer clubs that help provide farming techniques, support breeding stocks and loans and find markets for farmers. In the 2016-2020 period, the city’s Farmers Association will continue working with banks and credit organisations to provide soft loans for farmers. The city’s agriculture production value has increased from VNĐ158.5 million ($7,200) per ha in 2010 to VNĐ375 million ($17,000) per ha last year, according to the city’s Farmers Association. Pepper fails to survive flooding Nearly two weeks have passed since the particularly devastating heavy downpour and the floods that followed in the Central Highlands. Hundreds of households in Đắk Lắk Province, however, still remain on edge since the floodwaters have put their pepper fields in jeopardy. Nguyễn Văn Sáu, a farmer in Quỳnh Ngọc 1 Village, Ea Na Commune, Krông Ana District, stared grimly at his 2.5ha fields, which consisted of some 1,800 pepper and 1,700 coffee plants. “Though the water retreated days ago, the peppers are extremely sensitive and can stay just one day submerged in water, following which the roots and eventually the plants will die. There’s nothing I can do to salvage the situation,” he said worriedly. Another farmer, Trần Quốc Tuấn, in Ea Hu Village, Cư Kuin District, shared a similar plight. His 5ha field of peppers and coffee near the hydro-dam suffered tremendously; the plants’ leaves turned yellow and withered. “My family mortgaged our ‘red book’ (land use certificate) to the bank for a loan of VNĐ100 million (US$4,500) to invest in the pepper fields. Seeing that the price of pepper was steadily rising over the last few years, we decided to grow 500 pepper plants. This year, when we were just about to harvest the crop, the floods arrived and now the plants are slowly dying,” Tuấn said. His entire family’s living expenses, school fee for his children and bank payments all depended on the pepper fields. Now, with 200 dead plants and the rest likely to follow suit, his struggle to make ends meet will become even more difficult. Phạm Ngọc A, head of Village 1, Ea Hu Commune, said the floods have caused irreparable damage to people’s crops. Some 12ha of pepper and 5ha of rice are perishing, and this year’s yield from 5ha of coffee will reduce considerably. In addition, the rising water has washed away seven aquaculture farms that farmers intended to harvest and sell the produce in the upcoming Lunar New Year. Like Tuấn, since most locals borrowed money from bank to invest in production, their future is becoming increasingly precarious. Phạm Thanh Hoằng, chairman of the Ea Hu Commune People’s Committee, claimed that commune-wide, 100ha of coffee, pepper, crops and aquaculture farms were impacted by the floods, with Village 1 and 2 being the most affected. Local authorities are preparing a detailed report of damage to submit to the higher-ups. District-wide, some 350 hectares of crops were reportedly damaged, plus 4km of irrigation canals and ditches and five dams were swept away in the floods, Nguyễn Năng Chung, chairman of Cư Kuin District, said. The district’s People’s Committee has allocated VNĐ300 million ($13,400) to support affected farming households and direct local authorities to step up information dissemination on choosing suitable crops to avoid preventable losses should floods occur in the near future, cautioning people not to get caught up in the pepper-growing frenzy. According to Đắk Lắk Province’s Steering Committee for Natural Disaster Prevention and Control, 5,500ha of crop in Ea Kar District have been affected by the floods, of which only 520ha was used to grown rice, while the remaining majority was used to grow peppers, coffee and other types of crops. NA chairwoman honours humanitarian group National Assembly (NA) Chairwoman Nguyễn Thị Kim Ngân asked the Việt Nam Red Cross Society (VNRC) to continue its humanitarian activities, healthcare, emergency aid and disaster prevention and response programmes at a ceremony to celebrate its 70th anniversary on Saturday. Praising the efforts of VNRC members and volunteers in past years, Ngân said the country still faced many difficulties such as consequences of wars, natural disasters, climate change and diseases. “The society should focus on renewing its organisation and operation methods and strengthening human resources to better implement humanitarian programmes,” said Ngân. The NA chairwoman also suggested the society work closer with the Việt Nam Fatherland Front and expand co-operation with local and international organisations in humanitarian programmes. On the occasion, Ngân presented the Labour Order, second class, to the VNRC in recognition of its dedication to humanitarian causes. It was the second time the VNRC has been honoured with the distinction. Speaking at the event, VNRC Chairwoman Nguyễn Thị Xuân Thu said that the VNRC was Việt Nam’s first professional humanitarian organisation. The society was founded on November 23, 1946 by President Hồ Chí Minh, who was also its honorary president until his death in 1969. On November 4, 1957, the VNRC was recognised as a member of the International Federation of Red Cross and Red Crescent Societies and the International Committee of the Red Cross. During the renovation period, the organisation has ran large-scale humanitarian initiatives. Since 2008, it has raised nearly US$115 million for the needy. The campaign “New Year for the poor and Agent Orange victims” presents gifts worth VNĐ500 billion ($22.7 million) to 1.8 million needy people each year. The “cow bank” project, launched in 2010, has handed over around 20,000 cows to 20,000 households in 61 cities and provinces at a total cost of approximately $10 million. Over the past decade, VNRC’s chapters have raised nearly $225 million, given support to 22.2 million disaster victims and collected more than one million units of blood each year in blood donation campaigns. Vietnam People’s Army presents information equipment to Laos Information equipment was presented to the Information Department under the General Staff of the Lao People’s Army at a ceremony held in Vientiane on November 19 as a gift from the Vietnam People’s Army (VPA). The equipment presentation aimed to realise the protocol on Vietnam-Laos defence cooperation in 2015-2019 and the cooperation plan between the two countries’ defence ministries for 2016. Addressing the ceremony, Colonel Pho Trieu Cuong, deputy chief representative of the Vietnamese Military AttacheOffice in Laos, reaffirmed the significant role of Vietnam-Laos solidarity in the revolutionary cause of each nation. Over the past time, the VPA has given the highest support to Laos, Cuong said, adding that the gift is expected to help ensure a firm information system for the Lao Ministry of National Defence, thus serving Laos’ national building and protection. Director of the Lao department Colonel Sayaphon Chanthavong thanked the VPA for its assistance for Laos during the struggle for liberation in the past as well as in the current national construction and defence. The gift will help improving the capacity of the Lao People’s Army in communication, he affirmed. He pledged that his department will effectively use the presented equipment to better fulfill its assigned tasks. Illegal sand mining boats seized Hà Nội police on Saturday morning seized 14 illegal sand mining boats on the Hồng (Red) river running through Tản Hồng Commune of Ba Vì District. Of the 14 boats, six are dredgers and eight are sand-carrying boats. Initial police investigations showed that dredgers and illegal sand-carrying boats gather on the Hồng River section that connects Hà Nội’s Ba Vì District and Việt Trì City of northern Phú Thọ Province at midnight and early morning on weekends. People on the seized boats failed to present business operation licenses for transporting and extracting sand. Ba Vì District police, Hà Nội’s Environmental Crime Prevention and Fighting Police Department and the Waterway Traffic Police Department will investigate the case. Phạm Ngọc Tiến, deputy head of Hà Nội’ s Waterway Traffic Inspectorate, said “Sand dredging can cause banks to collapse and change the flow of the river during the rainy season, putting people at risk and damaging dykes and riverside structures.” Hà Nội has only 12 companies qualified for exploiting several parts of the Hồng River. Thirteen other firms have been permitted by the Việt Nam Domestic Waterway Department to dredge the riverbed and use the material collected. Motorbike accident leaves five dead Five people were killed and one was severely injured in a motorbike accident on Saturday evening in Xuyên Mộc District of southern Bà Rịa-Vũng Tàu Province. Four died on the spot while one succumbed to injuries while being rushed to hospital. The only survivor is currently in a coma. All six victims were reportedly on two motorbikes when they crashed into each other. According to Bà Rịa-Vũng Tàu Province’s police, the victims are from Bình Châu Commune of Xuyên Mộc District. The identities of the two motorbikes’ owners have not been determined. They also have discovered whether the two motorbikes were running on the opposite or same direction when the accident occurred. The accident is under investigation. Culture in mountainous areas to be introduced in Hà Nội Festivals of ethnic people living in the northern mountainous region will soon be on show in Hà Nội. Entitled ‘Scent and Beauty of Mountainous Region’, the festival, organised by the Ministry of Culture, Sports and Tourism, will take place on November 21-23 at the Exhibition Centre for Culture and Arts, 2 Hoa Lư Street. It will feature the culture of ethnic groups from northern mountainous provinces such as Hà Giang, Tuyên Quang, Thái Nguyên and Sơn La. The event aims to glorify the cultural heritage of ethnic minority groups in northern mountainous regions on the occasion of Cultural Heritage Day (November 23), according to Vương Duy Biên, vice minister of Culture. “It also raises people’s awareness of preserving and promoting traditional culture,” he said. Visitors will see cấp sắc (coming-of-age), the maturity ritual of the Sán Dìu from Vĩnh Phúc Province. All men must go through the ritual to be recognised by the community as mature enough to undertake communal positions. Other festivals featured include the wedding ceremony of the Dao from Tuyên Quang Province and lồng tồng (going-to-field) of the Tày from Bắc Kạn Province. During the three-day festival, ethnic people will perform traditional music, singing and dancing. An exhibition featuring the culture, landscape and local dishes of all provinces participating in the festival will be held. A traditional house with 24 pillars of the Tày from Thái Nguyên will be on display at the exhibition. The house belongs to a Tày family. On the occasion, they will attend the festival and speak with visitors, telling them about their life in the house. A Tày house has a nine-step staircase, nine being a lucky number to ensure the boys and girls of the family get married. The house’s owner greets guests at the foot of the stairs and walks behind guests on the stairs to protect them. Central localities work together to preserve common heritage Authorities of two central localities have reached agreements on protection work and profiling to nominate a shared historical landmark as a national heritage site. Hải Vân Quan, a giant brick gate built on top of Hải Vân Mountain, lies on the border of Thừa Thiên - Huế Province and Đà Nẵng City. Built during the Trần era (1226-1400), the gate was rebuilt in 1826 under Emperor Minh Mạng (1820-1841). For years, the gate has been left unattended due to disagreements between Huế and Đà Nẵng over responsibility of managing the gate as it lies on their common border. Many parts of the gate, once praised as the country’s most magnificent gate, have fallen into ruin. Last week, the departments of culture and sports of Huế and Đà Nẵng agreed to work together to protect the gate. Following a memorandum of understanding signed by the two sides, a joint team of Huế’s Phú Lộc District and Đà Nẵng’s Liên Chiểu District will manage security, tidiness and tourism at the site. The two will work together to nominate the gate as a national heritage to the Ministry of Culture, Sports and Tourism. According to Huỳnh Văn Hùng, director of Đà Nẵng’s Department of Culture and Sports, the work is expected to be completed in 2017. Hùng told local newspapers that authorities of the two localities would devise conservation methods for the gate. This is the second time that two localities submitted one application to the ministry to recognise one heritage site. Earlier, central Hà Tĩnh and Quảng Bình provinces did the same for Hoành Sơn Quan, a gate on the top of Ngang Pass separating the provinces. Hải Vân Quan lies beside a road going through the Hải Vân Pass connecting Huế and Đà Nẵng. It is a busy tourist site thanks to the spectacular view over the mountain and sea. US photographer launches Vietnam photo book A photo book titled “The Soul of Vietnam” by 73-year-old US photographer Lawrence D’Attilio was released on November 20. The book comprises 150 photos on Vietnam and its people from 2007-2015. The main topics of the book include Vietnamese landscapes, characters and moments, as well as the photographer’s view of the fast changing country. The photo book, published in both Vietnamese and English, was also launched in the US at the same time. Vietnamese exchange culture in Hong Kong Overseas Vietnamese in Macau, China participated in the “Asia Ethnic Cultural Performances 2016” held in Hong Kong on November 20. The event featured artists from 16 Asian countries and territories including Vietnam, Laos, Cambodia, Singapore, Malaysia, India, Japan, Nepal, Hong Kong and Macau. This is an annual event hosted by the Leisure and Cultural Services Department of Hong Kong, which aims to promote cultural integration, study culture of each country and territories anddiversify the arts of Asian countries and territories. A representative of Hong Kong’s Leisure and Cultural Services Department said that the event aims to create a platform for Asian countries and territories to show their unique culture. The event also strengthens solidarity, friendship and mutual understanding between people of Asian countries and territories. An amateur Vietnamese troupe performed traditional dances such as “mua o” (dance with the umbrella) and “muanon” (dance with conical hats), along with folk songs. Free operations for people with cataracts in Ninh Thuan province About 150 patients with cataracts in the south central province of Ninh Thuan have received free surgeries provided by the Asia Prevention of Blindness Association (APBA) and the province’s eye hospital. Hospital Director Pham Van Hai said most of the beneficiaries were low-income earners. All surgery and medicine costs, totaling 1.2 billion VND (53,300 USD), were funded by the APBA and his hospital. The surgeries on November 18 and 19 were a boon to cataracts patients as eye surgery is expensive. It was also a chance for local medical workers to gain more experience and learn about advanced techniques in cataracts treatment, Hai added. The number of blind people over 50 years old in Vietnam has continued to drop, from 443,700 in 2000 to 329,300 in 2015. The total number of the blind is about 378,700. Cataracts are the cause of blindness in 74 percent of cases, Director of the Central Eye Hospital Nguyen Xuan Hiep said at the national ophthalmological conference in the Mekong Delta city of Can Tho last October. Tâm wins second stage of cycling Nguyễn Thành Tâm of An Giang won the second stage of the Nam Kỳ Khởi Nghĩa Cycling Tournament yesterday. Tâm finished the 151km route from Trà Vinh Province to Sóc Trăng Province with a time of 3hr 32.57min. The win allowed him to earn the green jersey for best cyclist, with 25 points. Phan Hoàng Thái of Domesco Đồng Tháp came in second in this stage, while Mai Nguyễn Hưng of VUS HCM City was third. After two stages, Nguyễn Trường Tài of VUS HCM City still retains the yellow jersey, while Nguyễn Tấn Hoài of Domesco Đồng Tháp is in second position. In the team rankings, VUS HCM is on top, with An Giang and Domesco Đồng Tháp remaining behind. Minh, Trang win Best Players titles Nguyễn Tiến Minh and Vũ Thị Trang defended their titles at the National Best Badminton Players Tournament which came to a close in Bắc Giang Province on Saturday. Minh from HCM City won the men’s title after beating teammate Trương Thanh Long in the final match. Lê Đức Phát of Military and Trần Văn Trì from Quảng Trị came third. Trang from the host province beat Lê Thu Huyền of Hà Nội in the women’s final class. Nguyễn Thùy Linh of Đà Nẵng and Đinh Thị Phương Hồng from Thái Bình shared the third place.Trang had earlier earned a title in the women’s doubles, pairing with Nguyễn Thị Sen. Hà Nội’s Đỗ Tuấn Đức and Phạm Như Thảo took the mixed doubles title. Đức and Phạm Hồng Nam triumphed in the men’s doubles. Medical system set up to provide treatment to island locals, fishermen Vietnam National Institute of Maritime Medicine yesterday inaugurated a state-of-the-art Telemedicine system, connecting medical facility in Bach Long Vy island of Hai Phong city, the institute and the Viet-Tiep Hospital. Speaking at the inauguration ceremony, Deputy Health Minister Nguyen Viet Tien lauded the institute’s efforts and relevant agencies that operate the state-of-the-art medical system to meet the treatment demand of inhabitants in Bach Long Vy island and fishermen offshore. The system also helps improve medical treatment for residents in northern island. With the system, island inhabitants and fishermen will receive medical check-up performed by leading medical workers. More Zika-affected people reported in HCMC The Ho Chi Minh City Preventive Medicine Center yesterday said that five more residents in the city are positive for the mosquito-borne virus, bringing the total cases to 57 in 15 districts since March, 2016. Most cases live in Binh Thanh with 11, district 2 with 10 affected cases, and districts 9, 12, Tan Phu with six cases for each. Because of the complicated development of the disease, Deputy Head of People’s Committee Nguyen thi Thu directly arrived at some districts to inspect prevention task, urging district administrations to do much attemp in clearing environment to eliminate places where mosquito can lay eggs. Head of the Department of Preventive Medicine Professor Tran Dac Phu said that the Ministry of Health has not issued warning to limit people from travelling to affected districts because the virus has circulated in the country. Only pregnant women must take precaution because the virus can cause Microcephaly in newly-born babies. Local entrepreneurs join forces for rhino protection Around 100 leading entrepreneurs signed a commitment for not using rhino horns or products from wild animals and pledge to contribute to the protection of wild animals in Vietnam at a large-scale campaign hosted by WildAid and CHANGE in Hanoi on Wednesday. A commitment to preserve wildlife and stop the use of rhino horns in Vietnam was kicked off a year ago when U.S.’s billionaire Richard Branson had a meeting with a group of entrepreneurs in the country during his visit to Vietnam. Since then, there have been 75 more business leaders and 250 senior staff of enterprises signing the pledge. Vietnam and China are the two major consuming markets of rhino horns that are illegally hunted in South Africa and other African countries. There have been 5,750 rhinos killed in South Africa since 2008. Some of the entrepreneurs signing the commitment include Tran Hung Huy, chairman of Asia Commercial Bank (ACB), David Do, managing director of Vietnam Investments Group, Truong Hue Van, chairwoman of WMC, Nguyen Thi Mai Thanh, CEO of REE, Dinh Thi Hoa, CEO of Thien Ngan, Bui Quang Ngoc, general director of FPT Group, Le Quoc Vinh, CEO of Le Media, and Hoang Khai, CEO of Khai Silk, among others. Nguyen Thi Mai Thanh said in a statement that by signing the commitment, she wished to both balance financial benefits and social values. “I understand my role and responsibilities towards social issues, especially the consumption of wild animal products, as many of them have almost neared extinction. I’m calling on my family, friends and business partners to join me in this campaign,” she added. In addition, these business leaders will be pioneers in building sustainable strategies and corporate social responsibility. “I highly evaluate the commitment of Vietnamese businesspeople. It shows a strong support of local entrepreneurs to strengthen the legal compliance with more effective preservation activities of wild animals,” said Peter Knights, executive director of WildAid, in a statement. The signing list will be published on some local newspapers and magazines, including Nhip Cau Dau Tu (Vietnam Investment Review), Doanh Nhan Sai Gon, The Thao Van Hoa va Dan Ong, and TravelLive, and will go online at http://camketvihoangda.org. CHANGE and WildAid are also making a short documentary, featuring interviews with entrepreneurs about the protection of rhinos. There are more roundtables for businessmen and marketing campaigns to spread the campaign to people in the community. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNE |
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Article 6
Economic restructuring, growth model reforms for sustainable developmentVietnam’s economic restructuring program for the past 5 years brought about noticeable results. The progress has provided a basis for Vietnam to continue its restructuring plan until 2020.  Vietnam’s restructuring program in the 2011-2015 period has focused on macro-economic stabilization and restructuring of the national economy in combination with growth model renovation. The monetary market was kept stable and inflation was under control. These achievements have created the momentum for Vietnam to continue the master-plan on economic restructuring until 2020, focusing on renovation of the growth model to improve quality, economic efficiency and competitiveness, people’s living conditions, and Vietnam’s status in the global arena. Many deputies at the 14th National Assembly (NA) session which included on November 13, underlined that economic restructuring can hardly succeed without a favorable, open, and transparent business environment. “While the market is the driving force for commodities production, businesses should be the backbone of that process. The involvement of enterprises will attract investment from society and link scientists, producers, and the application of advanced technologies for effective production”, said Nguyen Thi Thanh, a deputy representing Ninh Binh province. One of the missions of economic restructuring is to improve the development of economic sectors by using high tech to create high added values. In the next five years, the government should avoid scattered investment, minimize the waste of resources, and tap the potential of key economic zones. “We should improve forecasting and rapid response to changes in domestic and global markets. The master-planning on regional connectivity should be strictly implemented with a focus on defining the core industries and principal products that can compete regionally and internationally. Economic development should go hand in hand with the settlement of social and environmental issues”, said deputy Chu Le Chau, who represents Lai Chau province. Under the restructuring program until 2020, Vietnam attaches special importance to building an independent economy, integrating into the global market, and consolidating its status in the international arena. Economist Nguyen Tri Hieu suggests some solutions:“Vietnam should improve its reliability and prestige in the world market to consolidate foreign investors’ trust in its economy. More importantly, we need to improve people’s lives, increase competitiveness, and raise our credit rating in the world.” VOV5 |
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Article 5
City seeks investors for Metro projectHCM City is seeking US$1.9 billion for the second phase of metro line No 5, which extends from the new Can Giuoc Bus Station in District 8 to the Bay Hien intersection in Tan Binh District.
Le Nguyen Minh Quang, director of HCM City Management Authority for Urban Railways (MAUR), said the city would seek investment from many sources, including ODA loans and loans through public-private partnerships. “The city will try to use the capital effectively and prevent any waste,” he said. Quang spoke at a meting on Thursday held by the Korea Railroad Research Institute, the Korea International Cooperation Agency and MAUR. Total investment for the second phase is more than $2.4 billion, including construction cost and site clearance. Of the figure, the South Korean government has committed to financing $500 million while the remainder ($1.9 billion) will come from the Vietnamese Government. The section will measure 14.56 kilometres, including 13 stations, eight of which are underground. The second phase is an extension to the 8.89-km section in the first phase. Hoang Nhu Cuong, deputy head of MAUR, said the metro line No 5 is an important line in the city’s metro system as it passes through Nguyen Van Linh Street District 7 and the Ben Luc-Long Thanh Expressway. The second phase will connect with metro line No 3b at the Hang Xanh intersection and metro line No 4 at the Phu Nhuan intersection. Park Noh Wan, the Korean consul general in HCM City, said South Korea would transfer technology, exchange experiences and cooperate with Viet Nam, especially HCM City, to develop the metro systems. Capital for the first phase of the metro line No 5 has been arranged, but construction has yet to commence. MAUR has urged the municipal authority to submit an investment proposal for the first phase to the Government and National Assembly for approval. Investors have committed to fund the project at a cost of $1.56 billion. The Spanish Government is investing $328 million, the Asian Development Bank (ADB) $567 million, the European Investment Bank (EIB) $179 million and the German Development Bank (KfW) $239 million. The remainder will come from the Vietnamese government. The first phase of metro line No 5, with nine stations, will have a total length of 8.9 km, including 7.46 km underground and 1.43 km above ground. In the first phase, the line will connect with metro line No 1 at the Sai Gon Bridge and metro line No 2 at the Bay Hien intersection. The metro line No 5 connects the Bay Hien intersection in Tan Binh District and Sai Gon Bridge in Binh Thanh District. The metro line No 5 will transport passengers from outlying areas to the city centre, which is expected to contribute to socio-economic development. The line, expected to be put into operation by 2025, will be driverless, with automated ticketing systems and smart cards. HCM City has planned a total of eight metro lines, one tramway line and two monorail lines but currently only metro Line 1 between Ben Thanh in District 1 and Suoi Tien Amusement Park in District 9 is under construction. It is scheduled for completion in 2020. The metro line No 1 has a length of nearly 20 kilometres and consists of 14 stations, three of which are underground. VNS |
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Article 4
11M FDI disbursement up year-on-year Total disbursement of foreign direct investment in the first eleven months of this year stood at $14.3 billion, up 8.3 per cent year-on-year, according to the latest report from the Ministry of Planning and Investment (MPI).
_640_auto.JPG) FDI disbursement up 8.3% in first eleven months while capital falls 10.5%. New and additional FDI capital totaled $18.1 billion, representing 89.5 per cent of the figure in the same period of 2015. As at November 20, 2,240 new projects had been granted investment licenses with total registered capital of $13 billion, equal to 96.1 per cent of the figure in the same period last year, while 1,075 existing projects added $5.07 billion in capital, equal to 76.1 per cent. Export turnover in the FDI sector (including crude oil) in the first eleven months was $114.1 billion, up 8.6 per cent compared to the same period last year and accounting for 71.5 per cent of the total. Excluding crude oil the figure was $112 billion, up 10.3 per cent and accounting for 70.2 per cent. Import turnover in the FDI sector was $92.8 billion, a 3.6 per cent increase year-on-year and accounting for 59.2 per cent of total import turnover. The sector therefore recorded a trade surplus of $21.2 billion including crude oil and $19.1 billion excluding crude oil. Total FDI capital & disbursement, 11M 2016
Source: MPI, November 2016 Nineteen sectors received investment, in which manufacturing and processing attracted the most, with 907 newly-registered projects and 766 projects adjusting their capital, for a total of $13.41 billion, or 74.1 per cent of all registered capital in the first eleven months. Real estate was second, with 49 new projects and total capital of $740.9 million, or 4.1 per cent of the total. Following the US election, most commentators believe President-elect Donald Trump will no longer continue with the proposed TPP agreement. "It is too early to say whether the agreement will be scrapped altogether or an amended, watered down version will be adopted," said Mr. Stephen Wyatt, Country Head of real estate consultants JLL. If the TPP is adopted in its current form, Mr. Stephen Wyatt believed Vietnam would stand to be one of the largest beneficiaries, which would filter down into the real estate market, due to the increased FDI the country would witness. "If the TPP does not proceed, the level of FDI will be less, but Vietnam has signed a number of other FTAs with other countries and regions recently, which will help to keep FDI at a healthy level," he added. Professional activities and science and technology ranked third, with $684.84 million, or 3.8 per cent. Foreign investment came from 68 countries and territories, led by South Korea, with total new and additional capital of $5.2 billion, or 29.2 per cent of the total. Singapore followed, with $2.05 billion, or 11.3 per cent, then Japan with $1.95 billion, or 10.8 per cent. Fifty-four cities and provinces received investment, led by northern Hai Phong city with 45 new projects and 35 projects adjusting their capital, totaling $2.74 billion, or 15.2 per cent of the total. Southern Binh Duong province was second, with new and additional capital of $1.93 billion, or 10.7 per cent, followed by southern Dong Nai province, Hanoi and Ho Chi Minh City, with total new and additional capital of $1.87 billion, $1.84 billion and $1.32 billion, respectively. Projects granted investment licenses in the first eleven months included the LG Display Hai Phong project, with capital of $1.5 billion, the LG Innotek Hai Phong Plant, with $550 million, a $315.46 million seaport and industrial park complex in Quang Yen town, Quang Ninh province from the CDC Corporation, headquartered in the Cayman Islands, the Middle Utilities Company Pte. Ltd from Singapore, and the Infra Asia Investment Limited from Hong Kong, and Amata Long Thanh City in Dong Nai province, with $309.3 million from Thailand’s Amata Corporation. VET |
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Article 3
Vietnamese go abroad to breed cows, grow rice As it is difficult to expand production scale due to the limited land fund in Vietnam, local investors are going abroad to develop their agricultural businesses.  ABC News reported that a Vietnamese businessman has spent $18 million to buy a farm with 10,000 cattle in the northern part of Australia. The buyer was Pham Nhat Vu, chair of An Vien Group, a media company. Vu is the brother of Vietnam's first dollar billionaire recognized by Forbes Pham Nhat Vuong, who is the president of Vingroup. This is the first Vietnamese invested project in animal husbandry in Australia. Many Vietnamese have been succeeding in farming in Australia, but they have mostly developed cultivation projects. T.L, director of a livestock company in Dong Nai province, said he as planning to farm cows in Australia to provide to the Vietnamese market. “It is very difficult in Vietnam to get a land plot of 100 hectares to organize agricultural production. There are many cattle farms in Australia which cover thousands of hectares each,” he explained. The weather in Australia is favorable for cattle breeding, and farms are large. Only one farmer is needed to take care of 1,000 cows, so the production cost is low. “Even if I don’t bring cows to Vietnam for consumption, I won’t have to be worried about the sale, because this will be undertaken by the government,” he said. According to the businessman, except the higher personal income tax, foreign investors are treated like local citizens. Regarding profit, he believes that he would ‘live well’ if he invests $5 million.
Local newspapers have recently reported that some Vietnamese businessmen bought farms in Canada for pig breeders to export to Vietnam. K, the owner of a pig farm in Canada, said the country does not allow new pig farms, therefore, foreigners can only take over existing farms through stake transfer deals. He said his farm provides meat to the domestic market, and he hopes he can bring pig breeders to Vietnam by mid-2017. Vietnam is a big rice producer and exporter, but Vietnamese also like Cambodian and Lao rice. This has prompted some businesses to grow rice in Cambodia and Laos to export to Vietnam. Loc Troi Group, for example, began developing a 107 hectare rice area in Kampong Speu in Cambodia in 2014, growing rice with no chemical fertilizer. By 2015, the area had been expanded to 340 hectares which provided jobs to 240 households. Nguyen Van Ngai, Economics Dean of the HCM City Agriculture and Forestry University, said that Vietnamese investors, with experience in rice growing, can easily succeed in other countries. Kim Chi, VNN |
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Article 2
Vietlott announces 5th winner of $2.4m lottery The fifth jackpot winner of the American-style lottery, with the prize worth over VNĐ54.8 billion (US$2.4 million), was announced last night by the Viet Nam Lottery Company (Vietlott).  The winner, whose name was not revealed, has 60 days to claim the prize. The company’s representative said the winning numbers were 12-16-17-18-22-30 for yesterday’s draw of the Mega 6/45. The game rules allow players to randomly choose six numbers from 01 to 45 to create a combination of six numbers to participate. The players then check the selected combination of six numbers printed on their lottery ticket with the draw result to determine if they are the same. Each ticket costs VNĐ10,000 (44 cents). The jackpot starts at VNĐ12 billion ($537,000). Within less than two months, the company has confirmed five jackpot winners. The first winner from Mekong Delta Tra Vinh Province won a jackpot of VNĐ92 billion ($4.1 million) on October 16. Nguyen Thanh Dam, the company’s deputy director, said at a press meeting last Wednesday that Vietlott’s sales revenue rose approximately 4.6 times in less than two months, from VNĐ159 billion ($6.9 million) to VNĐ734 billion ($32.2 million) between September 30 and November 20. VNS |
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New Lien Chieu terminal to ease Danang Port congestionThe Vietnam government is planning construction of a major new expansion to the country’s third largest seaport located in the central city of Danang on the shores of the East Sea, said experts at a recent forum in Hanoi.  A pre-feasibility study for the project at Lien Chieu, which has a budgeted cost of roughly US$1.48 billion, is under review by City officials that want to significantly expand the Danang Port’s capacity. The study, prepared by the engineering consulting firm of Tediport, lays out plans for the work to be completed in 3-phases of construction. The first phase projected to cost US332 million would add 1.87 million tons of capacity by 2020. Phases two and three would increase capacity by 17.53 million tons by 2030 and 46 million tons by 2050 at incremental estimated costs of US$353 million and US$792 million, respectively. Unfortunately, said speakers at the conference, the Danang Port is much too far away from Ho Chi Minh City to readily benefit from the overcapacity the country’s southernmost port currently is experiencing. One of the two main terminals at the Danang Port, Tien Sa, is already operating at maximum capacity, with shippers reporting delays as well as over overloading at storage warehouses in the region. Ground was broken on a US$49 million project last July to bump up the capacity of the Tien Sa terminal to 12 million tons of cargo per annum and enable it to handle container ships with deadweight tonnage of 70,000. Official figures showed the terminals at the Danang Port handled a combined 146,000 twenty-foot-equivalent units in the first half of this year, a 19% on-year rise against the same six-month period in 2015. A record setting 6.5 million tons of cargo passed through the port for the whole of 2015, said speakers at the conference. The pre-feasibility study proposed that the new Lien Chieu terminal be developed on a public private partnership basis with funding provided by a combination of funding from the city of Danang along with bank loans and ODA. The study is not clear which country would provide the ODA for the project but speakers at the conference suggested Japan as the most likely prospect to provide the required funds. Their rational was that the Japan International Cooperation Agency (JICA), agreed last April to provide US$781 million for additional port and road infrastructure at the Lach Huyen deep-water port in the northern city of Haiphong. The northern region is home to numerous Japanese foreign-invested manufacturing companies that would benefit from the Haiphong port expansion scheduled to open in May 2018, said the JICA in explaining its reasoning for providing the funding. A similar line of reasoning would apply to the Lien Chieu terminal, said the speakers, as the central region is heavily invested by Japanese businesses who would readily benefit from the expanded capacity. Vietnam is expected to continue to lead Asian trade growth over the coming decades, said the speakers, noting several forecasts that have projected solid growth for the next two decades. These projections combined with those forecasting record growth among ASEAN show sufficient cargo volumes would be available to justify the large infrastructure and port investment in the Lien Chieu terminal. The decision to move forward with the project by the government is prudent, the speakers at the conference concluded. VOV |
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Social News 28/11 Ca Mau preserves coastal protective forests  The Department of Agriculture and Rural Development of the southernmost province of Ca Mau has taken measures to effectively protect coastal protective forests. Accordingly, the department has urged the provincial Forest Management Department and sub-departments of Ngoc Hien, Nam Can, Dam Doi and Phu Tan districts to launch activities to raise local people’s awareness of protecting protective forests and aquatic resources. The department also joins hands with the Forest Management Board, local authorities, border guards and relevant agencies to increase patrols to prevent deforestation and illegal exploitation of forest products. Ca Mau is also paying special attention to improving the efficiency of forest management. The province has banned local farmers from illegally residing in and near the protective forests. Head of provincial Forest Management Department Le Van Hai highlighted the stable forest management and development of Ca Mau as violating cases dropped over years. The mangrove forest of the Ca Mau National Park, which was damaged severely during 2012-2013, has improved with tight management, he added. However, illegal forest exploitation and coal cellar building still exist in some areas of the province, along with forest product trafficking. Over the last five years, Ca Mau province has reported more than 1,300 cases of forest product transport and deforestation. In the first 10 months of 2016, local authorities handled 196 forest protection violations. Employers must be sued over insurance debts: officials One of enterprises that have delayed or avoided paying social insurance for their employees have been brought into court although labour unions, on behalf of the employees, have the right to sue them, the Việt Nam General Confederation of Labour (VGCL) said yesterday. Speaking at a conference about measures to crack down on insurance debtors yesterday, VGCL Vice Chairman Mai Đức Chính said that labour unions were given legal tools in January to take enterprises to court. Việt Nam Social Insurance and the VGCL even signed a co-operation agreement to provide data and ensure the rights and benefits of employees. The VGCL had required localities to sign commitments to strengthen debt collection and press suits if necessary. However, 16 localities had not yet signed their commitment and none of the debtors have been sued so far, he said. As regulated, every enterprise with more than 10 employees was supposed to jointly pay for workers three types of insurance, namely social insurance, health insurance and unemployment insurance. However, many intentionally ignored, delayed or refused to pay, according to the official. Việt Nam Social Insurance reports show that accumulated social insurance debt in the past ten months was some VNĐ9.55 trillion (US$382 million). Debt of more than three months total VNĐ6.8 trillion ($272 million), accounting for 72 per cent of the total. The total deb for the three types of insurance was VNĐ14.2 trillion ($568 million), an increase of 0.2 per cent compared to the same period last year. By November 15, only 78 per cent of total debts had been collected, seriously affecting employee benefits. Under the Law on Social Insurance, employers must pay 17 per cent of their employees’ monthly salaries and employees pay six per cent. With this cover, employees can enjoy financial support when they are sick and unable to work. Nguyễn Trí Đại, Head of Việt Nam Social Insurance’s Social Insurance Department, said enterprises avoid paying insurance either because they are in financial troubles or because they are unaware of their legal duty. Lax management of social insurance companies in localities also contributes to the problem, he added, citing a company in southern An Giang Province as an example. The company failed to collect debts for more than 60,000 local beneficiaries of social welfare since early January last year. Representatives of cities and provinces say a shortage of human resources, complicated suing procedures and a shortage of guideline on suing were the main reasons that labour unions hesitate to sue on behalf of workers. To solve the problem, vice chairman of the VGCL Chính asked labour unions to hasten the completion of suits and relevant documents over insurance debtors and transfer them to the people’s courts. Any difficulties during the procedures must be reported to the VGCL. He requested each locality to get between five to ten lawsuits to the people’s court by the end of this year. Việt Nam Social Insurance would co-operate with VGCL to set up teams to supervise implementation of the task in localities, he said. State-owned firms with large numbers of labourers, especially in the fields of transport, mechanics and textiles and garments, have been guilty of violations. Strong measures such as fines of up to VNĐ30 million ($1,650) do not seem to deter the debtors: many would rather pay these low fines than their social insurance debts. – VNS Hà Nội to curb health facilities overspending The Hà Nội’s Department of Health, in co-operation with the city’s health insurance fund, will inspect about 50 health facilities overspending their health insurance funds in the past nine months. The inspectors will determine why the cost and frequency of treatment at certain facilities have increased. Prescriptions and other medical regimen will also be monitored for abuse or profiteering from the health insurance fund. According to the city’s health insurance fund, the overspending of the fund was 1 per cent. As many as 73 hospitals exceeded the fund by a total of more than VNĐ200 billion (US$8 million). To curb overspending, the city has asked the inspection unit of health insurance funds at hospitals to strengthen operations and refuse to pay for costs failing to meet the fund’s requirements. The city’s People’s Committee has required localities to reach health insurance coverage for 80 per cent of the population by the end of this year and 90 per cent by 2020. HCM City university supports disabled students Library staff at the HCM City University of Social Sciences and Humanities plan to develop audio and brallie books for students with visual impairments at the university. The books are one of four initiatives chosen for be granted funds from a project designed to help university students with disabilities to access education carried out by the HCM City Disability Research and Capacity Development (DRD) Centre under the sponsorship from the Embassy of Ireland. Bùi Thị Hằng, director of the Library and Information Centre at University of Social Sciences and Humanities and the initiative’s team leader, said that the university has 10 students with visual impairment. Because of this disability, these students can not access documents at the library, Hằng said. “Currently, they just learn and research by hearing and writing down what lecturers say. Moreover, they access the free source of documents on Internet, but many of them are not verified,” she told Việt Nam News. Many of them take initiative in going to the library, but there are no audio and brallie books in the library to serve them, she added. In the initiative, the library’s staff also will be trained to guide these students to use effectively the library’s documents, Hằng said. It is expected that the audio and brallie books will be available next January, she added. Another initiative of lecturers from the Education Faculty at the University of Social Sciences and Humanities that has been provided funds will provide psychological counselling and other assistance services in learning for students with disabilities at the university, Lê Thị Yên Di, its group leader, said. At the Education Faculty, a counselling and assistance room for these students will be opened, she said. Two other initiatives of lecturers and staff at the city University of Education include developing a brallie map for its students with visual impairment to know the way to classrooms and providing an assistant for students with disabilities at the university. The project to help university students with disabilities to access education started at the two universities of Social Sciences and Humanities, and Education in January. Later, the DRD centre aims to expand the one-year project to other universities throughout the city. In the project, students with disabilities will raise their capacity to know and implement the rights of education and comprehensive development. They are also provided learning aid devices or volunteers who are ready to support their learning. It also aims to improve the awareness of university staff on providing necessary assistance to students with disabilities. Moreover, students will get support in seeking enterprises for internships or jobs after graduating. Lưu Thị Ánh Loan, the centre’s acting director, said that students with disabilities in the country still face difficulties in learning at universities and colleges. For instance, infrastructure there is not accessible for them. According to the 2009 Population and Housing Census in Việt Nam, the country has 6.1 million people with disabilities age 5 and above, or 7.8 per cent of the total population. Of them, less than 0.1 per cent study at universities or colleges. Southern region tackles mounting power shortage  The southern region must speed up delayed power projects to ensure sufficient energy supply and use cutting-edge technologies to reduce energy waste, experts have said. Southern Việt Nam, home to commercial hubs like HCM City and manufacturing clusters such as Đồng Nai and Bình Dương provinces, may face more power shortages next year. Many power projects which do not belong to Electricity of Việt Nam (EVN) are behind schedule, according to EVN. An official from the Ministry of Industry and Trade, who declined to be named, said that EVN would develop only 21 power projects with total power capacity of 14,610MW in the 2016-30 period. In addition, EVN will supply only 6.6 per cent of the region’s power demand in the 2021-2025 period and 13 per cent in the 2025-2030 period. The rest would be provided by other power businesses, he said. But most of the power projects developed by other businesses are behind schedule. For example, the companies have only completed 67.5 per cent of their assigned work in the 2011-15 period, which was one of the main causes of power shortages in the region in the period, according to EVN. Due to an annual power shortage of between 10 and 15 per cent of the region’s total demand, the region needs to receive power from the northern and central regions with a total capacity of 2,000MW every year. Experts said this resulted in a considerable loss of power in Việt Nam due to the long distance of power transfer. Because the southern region has no power reserve, EVN at times has to use diesel to generate power, which is double the cost of coal-fired thermal power. As a result, EVN lost hundreds of billions of đồng in the first half of the year. Dương Quang Thành, chairman of EVN, said EVN would expand capacity of a series of hydropower plants, including Hoà Bình, Ialy and Trị An. In addition, the Ô Môn thermal power plant in Cần Thơ, the Duyên Hải thermal power plant in Trà Vinh Province and Vĩnh Tân thermal power plant in Bình Thuận Province plan to increase power supply for the southern region. According to an official of EVN, EVN is building a thermal-power plant using liquefied natural gas (LNG), recommended by many experts as it can be imported easily. In addition, EVN and its partners plan to invest in solar power in areas such as the Central Highlands, south-central region and southern region. EVN will consider developing solar power projects on the surface of existing hydropower reservoirs and in hydropower plant areas or arid land to reduce site clearance costs. To reduce costs, the projects will use workers who are now operating hydropower plants. EVN said it would develop a solar power project with a capacity of 200MW in the central province of Ninh Thuận. Investment procedures for the plant have been completed. EVN will also give priority to solar power projects on islands such as Côn Đảo, Phú Quý and Lý Sơn. In addition, any delayed power project must be sped up; otherwise, the projects’ investment licences will be revoked. The Việt Nam Coal and Mineral Industries Group (TKV) has submitted a proposal to the government to build coal-fired thermal power plants in Trà Vinh Province and across the Mekong Delta. Recently, the government has given the go-ahead for more thermal plants in the Mekong Delta and gas-generated power plants in the central provinces of Quảng Nam and Quảng Ngãi. Deputy Prime Minister Trịnh Đình Dũng has urged the Ministry of Industry and Trade, EVN and TKV to join forces to minimise the risk of power shortages. Việt Nam’s electricity demand is expected to grow 13 per cent annually in the next four years due to its fast-expanding economy. American Center kicks off International Education Week in HCM City The US Consulate’s American Center in HCM City on Monday kicked off International Education Week, a joint initiative of the US Department of State and US Department of Education. The annual initiative, which ends on November 18, promotes understanding and support of international educational exchanges. Education Week, which highlights programmes that prepare Americans to live and work in a global environment, also showcases programmes that attract future leaders from abroad to study in the US. At a press meeting held on Monday in HCM City, US Consul General Mary Tarnowka said that Việt Nam was the sixth leading source of foreign students studying at US higher education institutions. The number of Vietnamese students increased from 18,722 students in 2015 to 21,403 in 2016, according to the annual Open Doors Report, published by the Institute of International Education with support from the US Department of State’s Bureau of Educational and Cultural Affairs. Of the 21,403 Vietnamese students studying in the US, 60 per cent are using personal and family funds. Việt Nam also maintained its position as the top source country of students in Southeast Asia. The strong increase in Vietnamese students shows continued conviction by students and parents that a US degree is a sound investment in their future careers, the US Consul General said. Thái Bình Province plans to grow 1,320 ha of coastal forest Thái Bình Province aims to plant more than 1,320 hectares of coastal forests in the next five years and protect almost 4,000ha of forest. The plan by the province’s authorities aims to recover lost forest areas, consolidate existing forest areas and grow new forests in coastal areas. In addition, the plantation will bring much-needed benefits to the local populace, like creating jobs, generating additional livelihoods, and ensure national security and bolster defence. VNĐ392 billion (US$18.7 million) is the estimated capital required to complete the plan, of which, VNĐ386 billion will be used to plant trees and build support components. Land illegally encroached upon by industrial zones and urban areas as well as land used by ineffective seafood farms located near sea dykes will be reclaimed and converted to forests, thus enclosing the forest belt. More technology will be used in forestry, including researching suitable plants for each type of terrain and researching new methods to control pests in mangroves, hence raising the trees’ survival rates. In the next five years, Thái Bình Province will prioritise the implementation of some key projects, according to the province’s authorities. The recovery and sustainable development of mangrove forest ecosystem project, with total investment of $2 million, was funded mostly by the South Korean government. The project to mitigate seawave impacts, stabilise seashores, and plant mangrove forests to protect sea dyke No 5 & No 6 will also be high on the agenda. According to the province’s Department of Agriculture and Rural Development, last year, the province finished taking inventory of its forestry resources and determined that province-wide, 9,160 hectares of land are reserved for forestry use - 3,700 hectares of which are woodlands, concentrated in two coastal districts Tiền Hải and Thái Thuỵ. Thái Bình Province merely has protection forests and no production forests so legal logging activities are non-existent. The province’s forest is part of the Red River Delta’s wetland biosphere and helps to mitigate the impact of climate change, resist saline intrusion, protect sea dykes, help conserve biodiversity, restore ecological balance and environmental protection. The province implemented numerous projects to plant new forest area and to consolidate and protect existing forests in 2011-2015. Five hundred ha of coastal protection forest and millions of ‘scattered trees’ were planted. HCM City uses waste to fuel power plant HCM City People’s Committee yesterday gave the green light to the development of a power plant that uses waste to produce electricity. The move aims to solve part of the city’s burden in waste treatment, as some 7,600 tonnes of solid waste is discharged in the city daily, but most of it is just dumped. The Japanese Hitachi Zosen Corporation (Hitz) and the HCM City Urban Environment Co. Ltd. (Citenco) are allowed to jointly build the waste-to-power plant at the Phước Hiệp Waste Treatment Zone in Củ Chi District. Under a pilot programme running from this year to the middle of next year, the plant is scheduled to handle 200kg daily, using organic waste collected from a waste classification programme in Bến Nghé Ward, District 1. People’s Committee vice chairman Lê Văn Khoa said the city would expand the waste-fuelled power plant programme if the pilot project proved effective. VNĐ14 billion trade centre now a cow shelter A VNĐ14 billion (US$636,000) - invested trade centre in the central Nghệ An Province has been unused for six years and become a free straw store for locals. Unused kiosks in Rộ Market trade centre, at Thanh Chương District, have become stores for agricultural equipment, straw and wood. The surrounding area of the trade centre turned into a cow shelter. Trần Văn Kỳ, chairman of Võ Liệt Commune People’s Committee said the Rô Market trade centre, inaugurated in 2010, aimed at creating jobs for locals and developing the local economy. However, the trade centre was unused as local people didn’t like trading in the closed trade centre, preferring the traditional flea market. Local authorities have urged the trade centre’s investor to change the architecture of the centre to include outdoor kiosks familiar to locals. Replacing a degraded old market, Nghệ An Province People’s Committee approved building the centre in 2007 on a 30,080sq.m area. The Northern Investment and Trade Joint-stock Company, located in Hà Nội, was the main builder. The trade centre included a big market temple, kiosks, rest room, restaurant, power station, and water supply station. Hai Phong active in legal knowledge dissemination Vietnamese and international legal regulations on seas and islands have been disseminated to residents in islands and border areas across the northern port city of Hai Phong during 2013-2016. It was reported at a conference held in Hai Phong on November 15 to review a related project, jointly carried out by the Hai Phong People’s Committee and the Border Guard High Command. Colonel Dao Quang Thuc, deputy director of the project, said communicators have creatively made serious contents of legal documents practical and memorable. The documents focus on a number of topics, including the resolution of the fourth Party Central Committee (10 th tenure) on Vietnam’s maritime strategy towards 2020, the Declaration on the Conduct of Parties in the East Sea (DOC), and the 1982 United Nations Convention on the Law of the Sea (UNCLOS). Another content that more closely related to local fishermen was the Prime Minister’s Instruction 689/CT-TTg issued in May 2010 on measures to reduce the number of arrested fishing boats and fishermen at sea. Communications campaigns on law compliance in Hai Phong between 2013 and 2016 have contributed to reducing the number of violations during the period by 364 cases compared to that of the 2009-2012 period. Hoang Thi Hong Luan, Vice Chairwoman of the People’s Committee in Cat Hai district said the population of her area is not stable due to the movement of migrant workers, thus communications activities must be specifically designed for smaller groups of people. According to Luan, to facilitate the information dissemination, Cat Hai has set up musical troupes in various localities and created a TV programme on legal education for every Saturday broadcast. The district concentrated on matters that attract public concern, such as maritime resources protection and land law. Vice Chairman of the Hai Phong People’s Committee Le Khac Nam stressed the need to continuously implement the project, requesting relevant agencies to closely work together and improve their communications human resources. Hai Phong is one of 28 coastal cities and provinces in Vietnam. It consists of 15 districts, 8 of which have sea border areas. Festival highlights HCM City’s development A festival highlighting Ho Chi Minh City’s development and integration will be held in the city from December 1 – 3 with various culture and art activities. The announcement was made at a press conference in the city on November 15. As many as 25 consulates, friendship organisations, non-governmental organisations, and business associations have registered to participate in the festival, according to the municipal Department of Culture and Sports. Organised by the municipal People’s Committee, the event aims to popularise the unique culture of Vietnam and HCM City to international friends. This year’s event will feature an exhibition on the city’s diplomatic activities, a book fair, and a workshop on education and startups. Food stalls will also be set up to introduce local specialties, while folk games are also expected to draw visitors. Alarm over paper mill threatening rivers in Vietnam’s Mekong Delta An environmental expert has called on the Tien Giang administration to pull the plug on a Taiwan-invested paper project he says may pollute one of the most important waterways in the province as well as the Mekong Delta. Assoc. Prof. Le Trinh, head of the Institute for Environmental Science and Development, is so concerned about the potential negative impacts the Dai Duong paper plant will have on the province’s Tien River, that he has petitioned the provincial administration to stop the project. The 250-kilometer long Tien (Front) River and 200-kilometer Hau (Back) River are the two most important waterways in the Mekong Delta in southern Vietnam. The Hau River is also under threat from another paper mill, run by Hong Kong’s Lee & Man Paper. The Dai Duong facility, located in Tien Giang’s Long Giang Industrial Park, is operated by the Dai Duong Co. Ltd., and fully owned by Taiwan’s Chang Yang Holding. A man stands next to the canal where wastewater from the Long Giang Industrial Park is discharged in Tien Giang Province, southern Vietnam. The paper plant discharges its wastewater through two local canals before finally reaching the Tien River, where “many of the province’s biggest water suppliers collect surface water for treatment before supplying clean water to millions of households,” Trinh said in his petition. The pundit, who is also deputy head of the Vietnamese Council for Environmental Impact Assessment, said the paper mill will also affect numerous local farmers as their agriculture production may be “adversely affected by the facility’s wastewater and smoke.” According to Assoc. Prof. Trinh, the paper making industry requires a number of chemicals for production, and the wastewater dumped by the facility contains various hard-to-treat toxic materials. Among those toxins are organic chlorides such as dioxin, which can be absorbed by fish and other aquatic animals before they are served at the dinner table. Trinh said several studies prove that it is impossible to completely remove dioxin from chlorine dioxide, the chemical compound used for pulp whitening. “With that in mind, it is impossible to not worry about the Dai Duong plant, especially when it dumps as many as 4,950 cubic meters of wastewater on a daily basis,” Trinh said. The expert added that the wastewater treatment capacity of the Long Giang Industrial Park is unable to completely handle such a large amount of wastewater from the paper mill. “If we let the plant operator treat its own wastewater, who can be sure that it will not cause an environmental incident?” he questioned. In that scenario, Trinh said, toxic wastewater will spill to the Tien River, its tributaries and the local canal systems. The number of people affected by such a disaster would be equal to that of the Formosa crisis in central Vietnam, he added. “As an expert who has been studying the environment in Tien Giang for years, I earnestly suggest that the provincial Party Committee, People’s Council and administration stop allowing this project,” he said. According to documents reviewed by Tuoi Tre (Youth) newspaper, Chang Yang Holding first proposed the Dai Duong project to Tien Giang authorities in January 2016, and submitted the necessary documents and papers on February 18. Less than a month later, on March 11, the Tien Giang administration gave the developer in-principle approval for the proposal, and only four days later, the Taiwanese company received the investment license for the project, with a total investment of US$220 million. With all paperwork completed, the developer leased as many as eight land plots, spanning a total of 227,530 square meters in the Long Giang Industrial Park, to build its plant. The Dai Duong paper mill produces four types of paper, including the double-ply Duplex and Kraf paper from scrap papers, with a total capacity of 175,000 metric tons a year in its first phase. The developer has received a number of incentives from the Tien Giang administration, such as a low corporate income tax of 10%, compared to the normal 20%. The Taiwanese firm also enjoys a corporate income tax exemption for four years from the first year it begins to post a profit, and a 50% tax cut for the subsequent nine years. Pham Anh Tuan, deputy chairman of Tien Giang administration, confirmed to Tuoi Tre that he had received the ‘sincere petition’ from Trinh. “We will invite scientists to assess the environmental issues in regard to the Dai Duong plant Trinh has raised,” Tuan said. “Tien Giang authorities will strictly follow the order by the prime minister, which is to never trade the local environment for new economic projects.” Muggers on southern Vietnam buses leave authorities powerless Muggers posing as passengers have been terrorizing buses in southern Vietnam for years, seemingly above the law as authorities seem unable to shut them down. The thugs, who often act as merchants of 'panacea,' target buses traveling from Ho Chi Minh City to neighboring provinces, on which they manipulate and threaten passengers to buy their products. They are also not hesitant to attack anyone who dares interfere with their ‘business.’ The bandits operate in gangs, with a man named Cuong considered the mastermind, with decades of experience and generations of ‘disciples’ in his portfolio. Several of Cuong’s mentees have gone on to form their own gangs. Born in the south-central city of Nha Trang, Cuong moved to Ho Chi Minh City and began his panacea endeavors near the Binh Phuoc flyover in Thu Duc District, able to acquaint himself with some notorious gang leaders in the area. In order to keep himself off the radar of local authorities, Cuong is now residing in a tenanted room in the southern province of Dong Nai, which costs him some VND600,000 (US$26.3) a month. His gang often preys on bus No.12, which shuttles between Ho Chi Minh City and Dong Nai on a daily basis. According to the ‘master,’ one has to dress and talk properly to be a persuasive seller, while his presentation has to follow a certain process. “You have to introduce yourself as an employee of a reputable pharmacy before handing out pieces of paper with a prescription able to cure many diseases,” Cuong said. The prescriptions are then given for free to earn the trust of passengers, he continued, adding that the real trick begins when the targets receive the medicine. A blister pack of PIROMAX, a type of pain killer selling for VND3,000 (US$0.13), would be charged at hundreds of thousands of dong (VND100,000 = US$4.3). “People who receive the medicine but refuse to pay will be taught a lesson. Those who have anything to say about our business will also suffer the same fate,” Cuong asserted. The mastermind has also taught his apprentices knowledge of the law, reminding them to only dole out soft-tissue wounds, as inflicting more serious injuries would lead to a criminal charge. Such gangs have been detained by police officers on several occasions, Cuong recalled, adding that they were only warned as there was no evidence. Aside from Cuong’s group, other teams of dishonest ‘businessmen’ operate in the area and respect each other’s territory. Chanh’s gang is the most notorious, with a large number of young and intimidating members, becoming a nightmare for bus passengers traveling from Ho Chi Minh City to other locations. Besides targeting intercity shuttle buses, the crooks also carry out raids on coaches of local passenger bus lines and cooperatives. “You have to pull over following their signal. They will break the windows and prevent you from picking up any passenger if you refuse to cooperate,” one passenger bus driver said. A probe showed that Chanh’s group could earn VND5 million (US$219.6) per day from their illegal practice. No witnesses or bus operators have dared to stand up to the outlaws for fear of falling victim to an act of revenge. According to Nguyen Than Tai, an official of the Dong Nai Department of Transport, it is difficult to permanently dealt with the muggers as victims have refused to provide evidence against them. “Several officers have been attacked during their inspections. Bus operators who prohibit the sale of their medicine have been harassed and obstructed from running their service,” Tai said. Tran Ba Hoa, president of a transport cooperative whose buses have been targeted by the criminal gangs, said that he could only warn his passengers of the potential danger, reminding them to pay extra attention to their belongings during trips. Nguyen Van Tri, vice-president of another cooperative, said that bus passenger numbers have dropped because of the issue, affecting his business. “The authorities must find a permanent solution to this problem,” Tri said. Meet three ‘tiny’ members of one ethnic minority community in Vietnam Three members of the same H’re ethnic minority community, located in the mountainous district of Son Ha in central Vietnam’s Quang Ngai Province, have been found to be suffering from a rare condition that leaves them with a tiny body. Dinh Thi Huyen, 20, who is the first-born daughter of a family in the Son Nham Commune of Son Ha District, is only 80 centimeters tall and weighs a mere 11 kilograms. Huyen’s body has refused to grow despite prescriptions of supplementary vitamins supplied by multiple visiting healthcare groups, the chairman of Son Nham Commune, Dinh Van Bay has said. Locals refer to her as 'the tiny girl.' According to Huyen’s father, Dinh Eo, being the only child in the family that suffers from the condition, Huyen is childish by nature and finds joy in playing children’s games with other kids in the neighborhood. Despite her physique, Huyen performs on the same level academically as her classmates, though she has stopped going to school since finishing junior high, as her family’s house is too far away from the nearest high school. Dinh Van Khit, of Di Lang Town in Son Ha District, is another H’re boy with a body that is tiny for his age. At 11 years old, Khit is 78 centimeters tall and weighs only eight kilograms, according to his father, Dinh K’Tenh, who said that Khit weighed a mere 800 grams at birth. Khit is shy, eats very little and does not perform well at school, having yet to graduate from kindergarten, his father added. “He once crawled into the family’s rice container and fell asleep there as the whole village set out to search for him, thinking he had gone missing in the woods. Later that night, my wife found him sleeping like a log in the rice container as she was about to prepare dinner,” K’Tenh said. However, Khit is not the smallest person in the district. The record for the smallest Vietnamese human goes to eight-year old Dinh Van K’Re, of Son Ba Commune in Son Ha District, who stands just 50 centimeters tall and weighs a mere 3.5 kilograms. K’Re’s father, Dinh Van An, said he was only able to eat a couple of spoonfuls of rice each meal, and had stopped growing from the age of three. K’Re learns quickly with visuals and audios, but is challenged with reading and recognizing letters, said Dang Van Cuong, headmaster of Son Ba Elementary School, where K’Re is in the first grade. According to the director of Quang Ngai Province’s Department of Health, Nguyen Tan Duc, Khi and K’re have had their conditions studied carefully by medical experts from both Hanoi and Ho Chi Minh City, who have agreed that they both suffer from Seckel syndrome, a form of dwarfism. People with Seckel syndrome, also known as bird-headed dwarfism, are characterized by a small head, a narrow bird-like face, a beak-like nose, large eyes with down-slanting palpebral fissures, a receding mandible and usually an intellectual disability, Duc said. The syndrome is a recessive genetic disorder caused by defects in the genes on chromosome 3 and 18. According to health director Duc, there have only been eight cases of bird-headed dwarfism reported in Vietnam. As for Dinh Thi Huyen, further examinations are still required before a proper conclusion can be made on the nature of her condition, with Duc saying Huyen’s small physique could be the result of hormonal disorders or congenital hypothyroidism. Urban transport project in Hai Phong adjusted The Prime Minister has approved an amendment to the northern port city of Hai Phong’s urban transport development project. Accordingly, gross investment for the project is 276.6 million USD, including 175 million USD in international development assistance. The project was extended to August 31, 2018 in accordance with the aid agreement. The PM has assigned the municipal People’s Committee and the State Bank of Vietnam, along with Ministries of Foreign Affairs and Justice and relevant agencies to complete legal procedures to extend the project. The municipal People’s Committee will also take appropriate measures to finish the project on schedule and is responsible for allocating funds for expenses arising from the extension. Patients need comprehensive treatment,” he added. HMC City says not to grant license for festivals with commercial purpose The People’s Committee of Ho Chi Minh City has asked districts’ authorities and relevant departments not giving permission for festivals with commercial or trade purposes and presenting violation of the rules implementing civilized lifestyle. According to the municipal authorities’ document on tightening management of traditional festivals in 2017, festivals depicting evil activities of brutality and violence, like gambling, practicing superstition, begging, making traffic jam, selling endangered wild animals and among will not be allowed to organize. Under the document, food services, retail food stores and restaurants have to ensure the safe and sanitary from manufacturing, processing, and holding of food... The management of local pagodas and temples has to manage donation box and use it for clear purpose; remove non-native statuary or foreign-style objects deemed “unsuited to Vietnamese customs and culture” from spiritual sites; keep relic sites in their original condition in accordance with Law on Cultural Heritage. Da Nang welcomes 5.51 million visitors, beating expectations The number of visitors to the Central city of Da Nang in 2016 is expected to reach 5.51 million, up 17.7% compared with 2015 and exceeding the projected figure by 7.2%, according to the municipal tourism department. Foreign arrivals are estimated to increase by 31.6% to about 1.66 million, while domestic tourists are also up by 12.5%. The sector has created jobs for about 27,000 people and generated revenues worth an estimated VND16 trillion (US$720 million), a year-on-year rise of 24.7%. Such positive figures come as a result of the city’s campaigns to promote its image, an endeavour to open new flight routes connecting the city with Bangkok and Taiwan, China and the efforts of the city’s tourist support centre. Da Nang has also worked with the provinces of Thua Thien-Hue and Quang Nam and travel agencies to diversify tour packages, and with the EU to enhance the capacity of its tourism staff. In addition, CCTV cameras have been installed throughout the city to ensure a safe environment for tourists. Last month, Da Nang was named Asia’s leading festival and event destination at the World Travel Awards ceremony. The city has set a target of attracting 6.1 million visitors in 2017, including 1.9 million foreign tourists, by stepping up its promotion programmes in key markets in East Asia and Southeast Asia and expanding to new markets in Europe and North America, as well as India. Da Nang’s tourism sector in 2017 is also expected to be buoyed by its hosting of the Asia-Pacific Economic Cooperation summit and the annual firework festival. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNE |
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Social News 29/11 Police seizes 1.3 tonnes of animal organs  Police in central Thừa Thiên-Huế Province yesterday seized 1.3 tonnes of animal organs without clear origin being transported from central Đà Nẵng City to Quảng Trị Province for consumption. At about 3pm yesterday, traffic police in Thừa Thiên Huế Province’s Thủy Phương Commune pulled over a truck for regular inspection and found 26 foam boxes containing animal organs. Each box contained 50kg of animal organs. The truck driver, Nguyễn Quang Vĩnh, in Đà Nẵng City failed to show papers of origin for the goods. He admitted he was hired by a woman only known as Xuân in the same city to transport the cargo to a customer in central Quảng Trị Province. Xuân allegedly told him the boxes contained fish from the sea. The police have transferred the seized animal organs to the provincial Animal Veterinary Department. Get-together marks 98th Romania’s National Day The Vietnam-Romania Friendship Association (VRFA) held a get-together to mark the 98th National Day of Romania and the 25th founding anniversary of the association. Addressing the event, VRFA Chairman Tong Van Nga congratulated Romania on the great achievements the country has made during the struggle for national independence as well as in the current socio-economic development. In 2016, Romania’s GDP growth reached 5 percent, the highest level in the European Union, and its per capita income hit 20,000 USD per year. He said that the traditional friendship and cooperation between Vietnam and Romania are based on mutual respect and understanding. Romania has trained more than 3,000 Vietnamese students and post-graduates who greatly contribute to Vietnam’s socio-economic development, culture, education and diplomacy. According to Romanian Ambassador to Vietnam Valerriu Arterni, the VRFA has served as a bridge for the two countries’ enterprises to meet and enhance business and investment collaboration. The association has regularly organised people-to-people exchange activities and arranged visits by Vietnamese alumni in Romania to their former schools, he added. He expressed his hope that based on the existing traditional friendship, the cooperation between Vietnam and Romania will develop sustainably in the future. ASEAN culture highlighted in Argentina Landscapes, cuisines and culture of Vietnam and several other ASEAN member countries like Thailand, Indonesia, Malaysia and the Philippines were introduced at a programme in Buenos Aires, Argentina on November 27. The programme was hosted by the Vietnamese Embassy in Argentina in coordination with the embassies of the above-said countries. It aims to enhance understanding about ASEAN in Argentina while stepping up cooperation between the South American nation and each ASEAN member country. Visitors to the festival were attracted by stalls displaying Vietnam’s Ao Dai (traditional long dress), handicrafts and photos capturing cultural identities of Vietnamese ethnic groups. Besides, Vietnam’s music, traditional martial art and Ao Dai performances, and Vietnamese dishes like Nem (spring rolls) and Nom (salad) also drew the enthusiastic response of the visitors. Clips introducing culture, trade and tourism in the five ASEAN countries were screened on this occasion. Addressing the event, Vietnamese Ambassador Nguyen Dinh Thao made a brief on the formation and development of ASEAN over the past five decades, especially its achievements, role and position in the region and the world at large, as well as its contributions to peace, stability, cooperation and development in Southeast Asia and Asia-Pacific. He spoke highly of Argentina’s support and contributions to the group’s development, expressing his hope to receive more assistance from the country in the time ahead. As the rotating President of ASEAN in Argentina, the Vietnamese Embassy committed to continuing its coordination with embassies of other ASEAN nations in Argentina and competent agencies in the host country to organise more activities promoting ASEAN’s culture and tightening solidarity and friendship within the group and between the bloc and Argentina. Gia Lai holds exhibition to mark national resistance day A poster exhibition opened in the Central Highlands province of Gia Lai on November 28 to mark the 70th anniversary of the national resistance (December 19, 1946). On the display are 190 big-size posters from artists across the country. It aims to raise public awareness on the leadership role of the Party and late President Ho Chi Minh and significant contribution of the Vietnamese people in the past struggle to liberate themselves. Many of the posters also call on the public participation in protecting traditional values and promoting civilised lifestyle. The exhibition lasts through December 20. Ben Tre: Water station inaugurated in coastal district A water supply station, which can turn saltwater with salinity of 16‰ into fresh water, was inaugurated in An Hiep commune, Ba Tri district, the southern province of Ben Tre, on November 26. The An Hiep water station will be able to filter 1,000 cubic metres of surface water of the Giong Nhut canal per day to serve about 1,500 households. Depending on demands of local people, its water supply network will be expanded in the future, as will its capacity. Chairman of the Ba Tri district People’s Committee Duong Minh Tung said that Ba Tri is one of the three coastal districts of Ben Tre province that usually faces fresh water shortage, therefore, the water station will support local lives. Currently, the Tan My water supply plant in the district meets 44.7 percent of local people’s fresh water demand. Quang Ngai rescues fishing vessel in distress Authorities in the central province of Quang Ngai is making efforts to save a fishing vessel with seven fishermen on board, which encountered an accident while working near the Truong Sa (Spratly) archipelago. The captain is Vo Duy Tien, 56, from Binh Chau commune, Binh Son district, Quang Ngai. Ship Qng 90134-TS left port on November 19. On November 27, its gearbox broke and could not be fixed, causing the ship to dock 50 nautical miles away from the Song Tu Tay island. The captain promptly called for urgent help. The Quang Ngai search and rescue agency has kept in touch with the vessel in distress and called on other boasts operating near its location to lend a helping hand.-VNA Power comes to Kien Giang’s island commune  The Southern Power Corporation under the Electricity of Vietnam on November 26 fired up an 110kV cross-sea transmission line to supply electricity to Lai Son island of the southern province of Kien Giang. With a total length of 43.9km, including 19.4 km on land and 24.5 km at sea, the An Bien-Lai Son 110 kV transmission line is the longest in Vietnam. The line, whose construction commenced in September 2015, is among projects providing power for island communes in Kien Hai, Kien Luong and Phu Quoc districts and Ha Tien town As many as 2,000 households in the island are expected to benefit from the 368 billion VND (16.3 million USD) project. The line will help promote socio-economic development, especially maritime economy, in Lai Son island in particular and Kien Giang province in general. The Southern Power Corporation plans to build more transmission lines to connect other islands in Kien Giang to the national grid, contributing to developing the maritime economy and forming an island system in the country’s southwestern waters. Southwest region boosts cooperation with Australia, Germany The Steering Committee for Southwest Region had a working session with the Australian and German ambassadors to Vietnam in the Mekong Delta city of Can Tho on November 28, with a focus on stimulating further engagement among the sides. At the meeting, Son Minh Thang, deputy head of the committee, informed his guests that the region plans to build an information centre in the Mekong Delta between 2017 and 2018 in a bid to enhance intra-regional connectivity. He said climate change impact is a pressing issue facing the region that needs international assistance, particularly from Australia and Germany, to tackle. He continued reviewing cooperation between the region and the two countries over past time. According to Thang, a marine zone management programme, sponsored by the German international cooperation agency GIZ, has introduced farming models as well as water and budget management methods to coastal localities in the Mekong Delta, helping them adapt to climate change. Meanwhile, the delta has, for many years, benefited from Australian-funded projects in education, poverty alleviation, health and climate change adaptation. Thang spoke highly of the outcomes of these projects and expected sides involved to continue working effectively in the future. He requested Germany and Australia consider providing technical and financial assistance for the building of the Mekong Delta information centre. Australian Ambassador to Vietnam Craig Chittick said the Australian Government pays a particular interest in helping the Mekong Delta manage its water resources, and has sponsored to ensure the supply of water from upstream Mekong River to the area. Australia has also supported the region in infrastructure development, he said, adding that there have been joint projects between Can Tho University and Australian research institutes. He pointed to the success of the Vietnam-Australian company in applying Australian technologies in shrimp farming, thus increasing productivity by up to 40 times. Chittick expected Australia and the southwest region will soon form partnership. German Ambassador Christian Berger said he is impressed by the region’s development plan in the coming time and the network formed by collaboration between the GIZ, banks and other international organisations here. IHL Moot Competition 2016 opens in HCM City The fourth International Humanitarian Law (IHL) Moot Competition of Vietnam started in Ho Chi Minh City on November 28. The two-day competition features seven teams from five universities nationwide, including the HCM City University of Law, University of Economics and Law under the Vietnam National University - HCM City, Diplomatic Academy of Vietnam, Ton Duc Thang University and the Vietnam National University - Hanoi. These events involve students taking on various roles that form part of contemporary IHL practice. The winning team will participate in the international Moot Court Competition. Vice Rector of HCM City University of Law Bui Xuan Hai said the competition helps law students from different universities meet and exchange experience, improve their skills as well as their foreign languages. It also offers opportunities for the students to put into practice what they learnt, to address legal issues. The annual Moot Court Competition is held all over the world, creating a venue for law students to practice as lawyers. Kien Giang builds five new hospitals The Mekong Delta province of Kien Giang is building five provincial-level hospitals, with a total investment capital of over 5.5 trillion VND (250 million USD). The facilities consist of a 1,200-bed general hospital, a 200-bed tuberculosis hospital, a 400-bed cancer hospital, a 100-bed psychiatry hospital, and a 400-bed obstetrics and paediatrics hospital. According to the provincial Department of Health, once operational the hospitals will markedly help reduce the current overload from the current 24.4 beds per 10,000 people to 26 beds by 2020. Kien Giang is short of 600 doctors to meet the target of nine doctors for every 10,000 people in 2020. US project helps rural inhabitants adapt to climate change Enhancing climate change resilience and mitigating the risks of natural disasters to improve rural livelihoods in the delta and coastal areas were the outcomes of a US-funded project announced at a recent conference in the northern province of Nam Dinh. The four-year-old Vietnam Forests and Deltas Programme (VFD) was sponsored by the US Agency for International Development (USAID) for four provinces in Vietnam, said Director of the VFD project in Nam Dinh. It has been carried out in 30 communes and towns in Nam Dinh since April 2014 to increase local capacity to cope with environmental changes and prevent natural disaster risks, he added. The project also evaluates the vulnerability of communities inhabiting in coastal areas, supports prompt response activities at communal level, installs radio broadcasting systems for early warning of natural disasters, and assists the building of safe schools. It helps farmers build adaptive models such as low-emission rice cultivation, sustainable breeding of white-leg shrimp, and disease-resistant potato plantation to improve local incomes and ensure food safety and environmental protection. Vice Chairman of the provincial People’s Committee Nguyen Phung Hoan said the VFD has helped raise public awareness of climate change, ecological protection and sustainable production, as well as supported communes to build storm shelters and early warning systems, provide rescue equipment, and hold response exercises. Farmers have been effectively applying agricultural production models that reduce emissions and protect the environment, he added. Director of the VFD Brian Bean said the active involvement of locals in the project proves the efficiency and feasibility of the VFD in Nam Dinh and other localities in general. In the coming time, the project will focus on activities to create livelihood for locals while expanding high-quality and sustainable rice and potato cultivation and treat agricultural by-products, he revealed. It will continue to evaluate the community-based natural disaster risks management, build plans to prevent natural disasters, improve early warning systems and upgrade shelters for coastal communes in the locality, he added. Be vigilant against animal disease outbreak: Ministry Though animal diseases have been under control so far, Việt Nam faces a high risk of epidemic outbreaks because of unfavourable weather conditions, an agriculture ministry official has said. The animals’ immunity is low because of weather conditions, so they are vulnerable to diseases, he said. Speaking at a meeting held last weekend to review disease prevention and control in livestock and aquatic species in 2016, Phạm Văn Đông, director general of Ministry of Agriculture and Rural Development’s (MARD) animal health department, called for increased vigilance to prevent outbreaks among cattle and poultry, especially of those that get transmitted to humans. At the meeting, Đông also set the agenda for 2017. Since the start of this year, bird flu has been reported in 14 communes and districts across eight provinces, said Nguyễn Ngọc Tiến, head of animal epidemic division in the animal health department. The number of poultry that had to be culled is 18,300. Both the number of communes that reported bird flu and the number of poultry culled have decreased two-fold compared with the previous year, Tiến said. At least 2,740 cattle have been infected by the foot and mouth disease, across 60 locations in 12 provinces. Tiến said animal diseases have been kept in check as strategies to control epidemic threats and outbreaks have been implemented in 60 of 63 provinces and cities. However, irregular veterinary services, lack of funding and not getting instructions on time pose challenges to the effort to prevent diseases, he added. Đông said all animal health staff at local levels should be proactive at disease prevention work and must coordinate their activities with farmers and local authorities. The animal health sector must also increase efforts to teach safe practices in raising cattle and poultry. He also suggested that the ministry should submit and get approved a national programme on disease control and prevention for the period 2016-20. Ha Noi wins first national petanque title Hà Nội won their first gold medal at the National Petanque Team Championship after years of waiting on Sunday. Hanoians topped the podium in the two mens and one womens event, beating Trà Vinh 13-5 in the final at the ongoing tournament in Sóc Trăng Province. Earlier they won bronze in the women’s team category. Head of Hà Nội Petanque Club Đặng Xuân Vui said it was a big step for the capital’s athletes. It would be a strong foundation so that his players could receive more support for titles at the Southeast Asian Games next year and the National Sports Games in 2018. The championship will continue with the two women’s and one men’s event. Kiều Tale chorus performed at church  A chorus performance of Truyện Kiều (The Tale of Kiều) was held in St Nicolas Cathedral in Đà Lạt City on November 26. The event was organised by the church and artist Vũ Đình Ân from HCM City’s Music Association to give locals an opportunity to enjoy one of masterpieces of Nguyễn Du, according to the organisers. The 65-minute performance was directed by artist Vũ Đình Ân, sang by the Thiên Thanh group, presented by two singers, Đông Nghi and Thanh Sử and danced by a group of nuns. The chorus was composed over 22 months by artist Ân and recognised as a Vietnamese record as the longest chorus performance. Last year, exerpts of the chorus were also performed in Hà Tĩnh Province to celebrate the 250th anniversary of birth of Nguyễn Du, author of The Tale of Kiều. The Tale of Kiều is an epic poem in Vietnamese and is widely regarded as the most significant work of Vietnamese literature. This is a 3,254-line classic verse novel written in lục bát (six-eight meter), a traditional verse form of Việt Nam’s poetry. The work which was translated into some 20 different languages including French, Chinese, English, Russian and Japanese was recognized by the World Peace Council as one of the world’s celebrated cultural works in 1965. Its author, Nguyễn Du was also recognised by UNESCO as a World Cultural Celebrity in 2003. Li Lam set to put on fashion show in downtown HCMC Li Lam will hold Blue Night fashion show to mark the 7th anniversary of her fashion brand Lam at Hôtel des Arts Saigon, MGallery Collection in District 1, HCMC. The show will showcase over 40 minimalism designs combining both classic and contemporary features with hand-made embroidered patterns in theme colors of brown, sand gold, blue, red and black and white, and using velvet, silk, organza, and lace. The collection reflects Lam’s ambition to combine fashion, nature and art. This is the first time Li Lam has cooperated with conductor Tran Nhat Minh to turn Blue Night into a fashion, music and art event with the performance of a string assemble. Minh graduated from the Magnitogorsk State Conservatory, majoring in Chorus Conducting before getting a Master of Arts degree in chorus conducting at Moscow Tchaikovsky Conservatory. Minh came second at an international contest for young conductors in Vladivostok, Russia in 2004 and won consolation prize at the Russia Competition for Professional Conductors. He has performed with Chamber Chorus of Moscow’s Conservatory in Russia, France, and Italy. Minh is a member of the HCMC Ballet Symphony Orchestra and Opera (HBSO) as a choirsmaster and vice chief of the opera. Li Lam started fashion business in 2008 with elegant and striking designs for women with unique handmade print patterns seen as her signature products. The 33-year-old designer has two stores in HCMC and Hanoi. PVN inaugurates analysis laboratory centre The Vietnam National Oil and Gas Group (PVN) has put into operation the analysis laboratory centre and the office of the Vietnam Petroleum Institute (VPI) in the Saigon Hi-tech Park in Ho Chi Minh city. The facilities are part of the project that also includes construction of several manufacturing and support facilities, spanning over 40,000 square metres. The centre, equipped with modern facilities and software, is expected to analyse more than 90 percent of domestically produced fuel, reducing delivery fees and saving time. VPI Director Nguyen Anh Duc said the work will help PVN as well as his institute to master analysis engineering and laboratory equipment, thus promoting research, development and technology transfer, enhancing international cooperation, and creating a research – application – training link. The centre will also help VPI develop a database of sample analysis results and provide information for relevant bodies and PVN to develop relevant policies and strategies, thus enhancing competitiveness, training capability and human resources for the sector. PVN Deputy Director General Nguyen Quynh Lam underlined the group’s priority on technology studies, application and innovation, saying that the project will improve the institute’s research, optimise its technologies, produce chemicals and petroleum and oil products and protect the environment. He urged VPI to use the facility to provide more science-technology solutions and management for stakeholders in the sector. He pledged that the group will continue providing investment for the institute to implement its assignments. In the first 11 months this year, VPI has implemented over 300 science-technology research contracts and carried out numerous sample analyses. 99-year-old grandma wows crowd with jaw-dropping piano performance Ninety-nine-year-old pianist Thai Thi Lien gave the audience in Hanoi a performance to remember on the weekend, as she gracefully recited two classical pieces by Polish composer Frédéric Chopin. The performance was part of a concert put together by the Hanoi Conservatory of Music in commemoration of its 60th anniversary. Thai Thi Lien, mother to world-renowned Vietnamese-Canadian pianist Dang Thai Son, is among the first generation of professionally trained Vietnamese pianists. The 99-year-old grandmother had the auditorium in complete silence before breaking into a standing ovation on November 26 as she recited two classical pieces by 19th-century Polish composer Frédéric Chopin with grace and passion. Lien was born in then-Cho Lon City (now part of Ho Chi Minh City) to an educated Christian family, and was introduced to the piano at the age of four from the encouragement of her father, who later afforded her piano training at the Conservatoire de Paris when she was 16. In 1948, Lien and her first husband moved to live in the Czechoslovakian capital of Prague, where she earned her bachelor’s degree at the Prague Conservatory, being one of the first Vietnamese to do so. Bình Dương Television International Football Tournament to kick off The Bình Dương Television International Football Tournament-Number 1 Cup, is scheduled to begin on December 2 at Gò Đậu Stadium in the southern province of Bình Dương. The annual event will attract the participation of four domestic and four foreign teams. According to the draw, the hosts Becamex Bình Dương, Quảng Ninh Coal, South Korea student team and Cambodia’s Boeung Ket Angkor are to compete in Group A. Group B includes Hải Phòng, HSB Đà Nẵng, Bangu Atlético of Brazil and Shonan Bellmare of Japan. Teams will compete for the cup in a round robin format. The top two teams from each group will enter the semi-finals. The winner will receive VNĐ500 million (US$21,700) in cash, while the runners-up will receive VNĐ300 million and VNĐ150 million. The tournament will begin with Quảng Ninh Coal playing South Korea student team in group A. The final game is scheduled for December 11. HCMC ensures welfare, healthcare, education despite budget cut Secretary of the Ho Chi Minh City Party Committee Dinh La Thang yesterday said that the city would still ensure social welfare, educational investment and medical development although the Government has decided to reduce the city’s annual budget keeping the rate from 23 percent to 18 percent in the phase of 2017-2020. The statement was made to reassure voters in District 3 who expressed concerns about the budget cut. According to Mr. Thang, the budget reduction will affect socioeconomic development however the city has much potential to exploit and make up the cut. At first, the municipal authorities will curb expenses, use the budget efficiently and prevent waste in public investment. The City will intensify social investment mobilization from domestic and abroad sources to implement projects under BT (Build-Operate), BOT (Build-Operate-Transfer) and PPP (Public Private Partnership). At present, capital source from residents is very large and overseas remittances to the city approximate US$5 billion a year. Things that the city need to do now are to build a mechanism and create public confidence to raise these funds. The City's Party Chief revealed that the budget keeping the rate cut has been applied not only to HCMC but also other provinces and cities nationwide with large budget revenues. He hoped that voters will share difficulties with the country and the city. Despite the budget reduction, HCMC will still efficiently implement its seven breakthrough programs, which the city Party Committee congress’ resolution has defined, those are to ensure social welfare, improve education and develop healthcare, he affirmed. Citing Secretary General Nguyen Phu Trong’s judgment about corruption fighting, Mr.Thang says that the issue is the concern of the entire society, state and party for relating to the country’s development and regime survival. The party and the Government have made much effort in anti-corruption, which he said a very complicated work, and gained some certain results. In the upcoming time, they will continue carrying out more drastic measures with high and enduring determination to tackle the issue. At the meeting, Mr. Thang warned voters of conspiracy by hostile forces who have taken advantage of the corruption problem to oppose the party and the state. Voter Tong Son Hai from District 3 worried about trillion dong loss in making projects and proposed to clarify the responsibilities of relevant sides and strictly handle them to avoid wasteful projects. Mr. Thang said that the inspection of those projects had been conducted from previous tenures instead of starting in the current term. In the upcoming time, the Government will continue reviewing projects of ministries, agencies and localities and comprehensively estimate them to have solutions to minimize damage, he said quoting an instruction by the Prime Minister at the recent session of the National Assembly. Voters in the district also reported some other issues such as overloading curriculum of students in educational stages, unemployed bachelors, brain drain and long complicated land and housing procedures. In addition, they suggested the city to pay attention to the daily life of drug addicts at rehabilitation centers and not to implement the policy to take them back to their families. In the afternoon on the same day, the secretary met voters in Districts 1 and 4. Ms. Duong Thi My Dung from District 4 concerned that traffic accidents have recently occurred continuously killing many. Mr. Le Minh from District 1 said that the National Asembly (NA) supervision activities have been conducted well however authorized agencies have showed limitations in uncovering corruptions. Most of cases have been disclosed by the press before the agencies started investigation. So he proposed NA deputies to closely supervise these agencies to prevent negative problems from occurring. Hue Tourism and Culture Day to be held in Ha Noi  Hue Tourism and Culture Day will be held at Hanoi Opera House from December13-16. The event is a chance to promote Hue’s cuisine and tourism products to Hanoians. The program will include a cuisine and tourism promotion festival and an art performance themed “Winter in Hue”. Various Hue traditional dishes will be introduced to visitors, such as bun bo (beef noodles), com hen (rice with mussels), banh beo (rice cake with grilled shrimp), banh bot loc (dumplings with shrimp), banh khoai (fried rice crepes), che hat sen (sweet lotus seed pudding), me xung (sesame candy), tom chua (pickled shrimp), and more. The art performance “Winter in Hue” will bring images of Hue ancient capital with songs honoring love, nostalgia and the city’s renewal. The program is co-organized by the Minstry of Culture, Sports and Tourism and the provincial People’s Committee. Cambodian major nabbed for smuggling gold into Vietnam A major-ranked border security officer from Cambodia has been detained for smuggling nearly 20 kilograms of gold into Vietnam. Major Rim Ri Linh, 50, deputy chief of the border security office in Phnom Denk, Cambodia, has been arrested for transporting 19 kilograms of gold into the southern Vietnamese province of An Giang, Huynh Ngoc Ho, head of the Customs Department at the Tinh Bien Border Gate in An Giang, affirmed on November 26. The Cambodian officer dressed in his uniform drove his automobile from Cambodia to Vietnam on November 25 and did not stop to finish paperwork regarding his immigration. Customs officers at the border gate coordinated with provincial police to seize the suspect as he was heading to Tinh Bien District, An Giang. The smuggled products included 18 24-karat gold bars worth over VND17 billion (US$753,563), officers said. According to Major Linh’s statement, he had accepted the offer of a Cambodian man named Ti to transport the gold to a Vietnamese woman in Nha Bang Town. The Cambodian major also admitted to committing thee other gold smuggling in November, with the exact amount remaining unclear. During an interview with Tuoi Tre (Youth) newspaper, a gold specialist stated that smuggled gold is often sold to local citizens or used to produce jewelry. As gold prices have been high in Vietnam in the past years, many locals decided to buy smuggled gold instead. The contraband precious metal is often melted into raw gold before being distributed to local gold shops and buyers. According to the director of a Ho Chi Minh City-based gold company, gold distributed by major local firm SJC currently sells at VND35.71 million (US$1,582) per ounce while raw gold is offered at VND33 million (US$1,462) per ounce. PM urges mass vaccine production Việt Nam must be able to produce large amounts of multivalent vaccines in the coming years, Prime Minister Nguyễn Xuân Phúc has said. He made the statement due to the fact that by 2019, the country will no longer receive aid from the Global Alliance for Vaccines and Immunisation (GAVI) for 5-in-1 combination vaccines as part of the national Expanded Programme on Immunisation (EPI). Việt Nam is one of few countries in the region able to produce vaccines for humans, the Ministry of Health said, with 11 out of 12 vaccines for the EPI produced in the country. However, the vaccines were all monovalent. This calls for autonomous mass production of multivalent vaccines in the country, especially the acellular 5-in-1 combination vaccines, which will replace the 5-in-1 Quinvaxem vaccines that have been provided by GAVI. To produce large amounts of multivalent vaccines, industrial factories for large-scale vaccine production are needed, according to representatives from the health, finance and science and technology ministries. These facilities should be managed by a government agency, PM Phúc said during a meeting with other leaders last week. The agency should consist of experienced officials familiar with vaccine research and technologies, he said. He said the Government would invest in developing core technology to produce multivalent vaccines. An import-export policy consistent with international standards and Việt Nam’s conditions should be developed alongside the research, he said. HCM City honours 138 individuals and groups for their noble contributions HCM City People’s Committee and Việt Nam Fatherland Front last Saturday honoured 113 individuals and 25 groups, clubs as well as associations in the city for their noble contributions to life in the city. Their contributions also help build one city with civilisation, modernism, love and a good quality of life, Nguyễn Thành Phong, chairman of the city People’s Committee said at the honouring ceremony. They include seniors, workers, teachers, young people, nuns, monks and retired doctors. “Their silent and noble contributions need to be honoured because they are done from the heart. These people are the seeds that cultivate goodness in life.” Phong said. The 138 individuals and groups, typically, volunteer to raise orphans, help poor people as well as people with disabilities. They also provide free heath examinations and treatment, teach children with cancer as well as poor kids, and collect rubbish in canals. Charity food groups in Districts 1, 2, 11, 12 and Bình Thạnh provide free food to poor people. Free health examination and treatment by clinics are set up by war veteran associations in Gò Vấp District and nuns in Phú Nhuận District. Phạm Văn Lương, 50, of the northeastern coastal province of Quảng Ninh, moved to the city in 1991 and works as motorbike repairer in District 1. He has repaired motorbikes for free for people with disabilities. Martial arts instructor, Lê Hoàng Mai, of Tân Bình District teaches martial arts for free for workers at industrial parks and export processing zones and poor students. Moreover, many of them help former addicts or prostitutes who come back from rehabilitation facilities and fight against crime as well as drug traders in their localities. A team of motorbike taxi drivers in District 2, which was set up by the district Labour Union in 2008, for instance, helped seize more than 300 robbers. Some of those honoured were people with disabilities who are perseverant to overcome their disabilities and get success in life. Vũ Công Hào, 27, of Tân Phú District, is one of these people. He is the first visual impaired person to graduate from the city College of Culture and Arts. Currently, he is learning music education at the city Conservatory of Music while teaching music to children with visual impairment at Thiên Ân and Nhật Hồng shelters in Bình Thạnh District. At the honouring ceremony, Vice President Đặng Thị Ngọc Thịnh said that they were commendable models and their humanistic and wonderful activities should be spread to make society better and kinder. The city should continue discovering and honouring other people doing humanistic and wonderful activities, the vice president added. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNE |
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Dollar/đồng exchange rate cut by 16 đồng
HÀ NỘI – After a significant rise in the US dollar/đồng reference exchange rate in the past few weeks, the central bank this week cut it by 16 đồng to VNĐ22,121 per dollar. The đồng listed at commercial banks on Tuesday morning also continuously rallied against the dollar after making its first recovery last Friday, in the wake of the State Bank of Việt Nam’s affirmation to be ready to sell the dollar to intervene in the forex market. As commercial banks are allowed to trade the dollar at +/-3% on either side of the reference rate, they can offer a rate between VNĐ21,457 and VNĐ22,785 on Tuesday. On Tuesday morning, Vietcombank cut the buying and selling rates by 10 đồng against Monday’s figures, to list the rate at VNĐ22,650/VNĐ22,750 per dollar. The buying/selling rates at BIDV and Vietinbank were also down 10 đồng to VNĐ22,670/VNĐ22.750. Compared to late last week, the dollar listed at commercial banks weakened on Tuesday against the đồng by 50-60 đồng. Commercial banks continue to maintain a gap of more than 100 đồng per dollar for the buying and selling rates to minimise risks in case of sudden volatility in the domestic and global forex markets. In the unofficial market, the dollar/đồng exchange rate was quoted at VNĐ22,810/VNĐ22,830 for buying and selling at 9am Tuesday, unchanged against Monday. Viet Nam News |
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Article 2
“The PM is facing unprecedented difficulties” In the second part of her talks to VietNamNet, economic expert Pham Chi Lan spoke about the hard work of Prime Minister Nguyen Xuan Phuc, the inertia of the government apparatus, and the odd method of GDP calculation of Vietnam, and suggested ways to attract capital from the people.  Economic expert Pham Chi Lan Which difficulties is the government of Prime Minister Nguyen Xuan Phuc facing this term? Public debt, particularly government debt, has exceeded the safety threshold, or the slow implementation of the three breakthrough strategies. Have you seen any measure to promote these? High public debt is the top challenge that is facing Mr. Phuc and the government. But it is not the responsibility of the government only, but also of the National Assembly because under the Constitution and laws of Vietnam, the National Assembly is the one that makes a decision on the state budget. If the National Assembly was serious in ratifying the state budget estimations and balance, it could have significantly prevented spreading investment and overspending at all levels. More than five years ago, when public investment became a hot issue and when public debt continued to rise, many people were surprised knowing that every year there were more than 300,000 public investment projects in Vietnam. Thus the state did the job of the market and the society, and the number of public investment projects was requested to be cut. The number of people who are paid by the State is high and is increasing, causing budget overspending for regular activities, which currently account for nearly 70% of budget expenditures. These problems were voiced at the National Assembly sessions many times but the situation has not improved much. Therefore, we must say that not only the Prime Minister or the Government, but also the National Assembly and all ministries and local governments have to take responsibility for this situation and must join hands to stop the increase of public debt and public spending. Several years ago, only when the Politburo did not turn a green light for the high-speed rail project, the National Assembly could reject that $56 billion project; otherwise, that huge project would have added weight to Vietnam's public debt burden. The second difficulty is bad debt. We have conducted bank restructuring for five years and it was reported that part of the bad debt was solved in the previous term of the government. However, it turned out that debt was just taken from this bag to another one or from banks to the Vietnam Assets Management Corporation (VAMC). Now it has become a huge problem and we have to deal with the debts sold to VAMC, the existing debt and the due debt. Recent scandals relating to Vietnamese banks show the fact that administration at some banks is very loose and this can cause risks. All those things are becoming a burden for the government of Prime Minister Nguyen Xuan Phuc. The slow implementation of the three groundbreaking strategies is also a major difficulty that the current government has to face. Of these, institutional reform and human resource development have been discussed and put in many resolutions of the Party, the National Assembly and the Government, but the implementation of these resolutions remains stuck. In terms of infrastructure, although a number of large projects have been completed and significantly contributed to the country’s social and economic development, there are still questions about waste, loss of money, or the effectiveness and quality of these works. With all these three strategic breakthroughs, the most important prerequisite is thinking innovation. Surely, the Prime Minister and his government alone cannot bear the entire responsibility for the absence of that factor. But the people are demanding that the party and the state leaders must successfully implement the resolutions of the XI and XII Party Congresses on the three breakthrough strategies to unleash the development path of the country in the coming years. In addition to the three above difficulties, there are also matters that had not previously occurred such as climate change, and severe droughts and salinity in the Mekong Delta partly caused by climate change but mainly due to the flow from upstream blocked by hydropower works built by neighboring countries. The Red River is also facing similar risks. And there are also environmental disasters that have not yet been discovered. I think all of the above issues are a major burden on the shoulders of the Prime Minister and the current Government. When the country has new leaders, the people hope these leaders can improve and promote innovation and can make things better for the country. It is a big gap between hope and faith, which can only filled by action and real results. For Prime Minister Nguyen Xuan Phuc, the people feel that the PM is close to people and listens to the voice of the people. People can see that since he took office, the Prime Minister has been working very hard and focused on dealing with many matters for the people and businesses. At the same time, he has promoted the implementation of significant and strategic tasks such as institutional reform, administrative reform, improving the business environment, business development ... The people also know that the Prime Minister has always sped up the operation of the government apparatus. But obviously, the inertia of the government apparatus is still there, making the distance from commitment to action by the Government is still far. There are things that are not difficult or complicated at all, but the relevant ministries or local governments don’t care or don’t want to deal with; for example, the regulations on checking imported fabric samples or circular 20 on automobile imports. It is worrying that some provinces and cities are competing with each other in raising GDP and budget revenue through attracting investment without paying attention to the environment. How should the PM and his government deal with this situation? From the end of the previous term, Prime Minister Nguyen Tan Dung issued the guidance on the calculation of GDP, under which calculation of GDP of provinces will be gradually removed to have only the national GDP. This guidance is absolutely right, but unfortunately it has not been carried out as expected. Before the 12th National Party Congress, all provinces and cities held their congresses and at all provincial congresses, GDP was considered the most important factor to assess the development and achievement of a province in the five-year term. High GDP growth rates were used to cover weaknesses such as the underdevelopment of agriculture or the slow improvement of living standards. Is this beyond the Prime Minister’s power? Yeah, it may go beyond the PM’s authority but I think the Prime Minister and the Government are those who run the country’s economic powerhouse so they must have a decisive role in changing the old mindset. The National Assembly also plays a significant role in setting the annual and five-year growth targets for the Government. As long as we consider GDP growth as the top goal and the most important indicator to evaluate the operations of the Government and local authorities, without paying attention to how the GDP growth is achieved and at what cost, local governments will still race for GDP. And thus local governments will try their best to entice state and foreign-invested projects by granting enormous incentives, regardless of project effectiveness and environmental pollution. Natural resources and land of many provinces will be exploited to satisfy the addiction to GDP growth. In the world perhaps only Vietnam calculates GDP for each province and considers this as the foundation to evaluate and set development policies for each province. At the same time, provinces take GDP growth as the basis to ask for capital from the central government. Thus, GDP calculation of many provinces was not made based on objective and scientific methods but on the wishes of local officials. For many years, a paradox has occurred in Vietnam – most provinces had much higher GDP growth than the country’s average. Racing for provincial GDP growth target has pushed Vietnam’s institutional systems to fall deeper into fragmentation, since then the budget and national resources are used in a scattered and inefficient manner. This way of resource allocation also leads to the formation of interest groups. When economic and politics interests are intertwined in the government apparatus, the ultimate losers will certainly be people, society and the economy. This term I wish that the Prime Minister and the Government will continue to change the way of calculation of GDP. Indicators of labor productivity, efficient use of resources, environmental protection, and innovative applications of technology, labor training and job creation, improvement of income and living standards of the people, the accessibility and quality of education services, culture, health, sanitation, multidimensional poverty reduction ... should be considered more important than GDP growth rate. The Government must resolutely not attract investment at all costs. Could we replace ODA by the source of capital from the people?  PM Nguyen Xuan Phuc at a cabinet meeting Vietnam lacks capital for investment and development, and apparently needs aid, particularly bilateral assistance from the outside. But bilateral aid also poses unpredictable dangers such as appointing contractors or an increase of capital or slow pace of construction, so ultimately, ODA loans become expensive. The Cat Linh - Ha Dong urban railway is a typical example. Some said that Vietnam should attract capital from Vietnamese people; is it feasible? When Vietnam became a medium-income country, local and international experts discussed the direction that Vietnam would gradually decrease the use of ODA and finally stop using this source, and Vietnam can even become an ODA supplier when it reaches the higher level of development. That is the path that most developed countries experienced. Since 2010, when Vietnam became a low-middle income country, Vietnam has had to borrow ODA loans at higher interest rates, shorter grace period and shorter repayment period. In recent years our country has had to pay more for the ODA loans from the early years of innovation period, and the density of debt payment will continue to rise until 2020. This will account for a very high ratio in budget spending. On the other hand, it is a big problem to use ODA loans effectively. Some provinces mistook ODA as free money so they used this source ineffectively. Regarding domestic sources, I think the source of capital held by the people is huge so the state should find ways to mobilize this source. The best way is to create a good business environment, create transparent channels of capital mobilization to ensure harmony of interests of the parties involved. With the growth of the private sector and increasingly committed openness for foreign companies to participate in projects in our country, including the field of public investment, with the ability to develop public-private partnership (PPP) projects, it is time for the government to count on the new steps, more boldly towards increasing the role of private investors, decrease the role of state investment, to focus on the task of building development strategies, monitor the implementation of investment projects using ODA capital and other sources of loans, overcome the deficiencies of both the state and the market and to ensure efficiency and interests of the people and the economy in these projects. It is also practical preparation for our country after we longer receive ODA. Huynh Phan, VNN |
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Article 1
ADB-backed community tourism project proving successful in central Vietnam  A Chay Lap villager, now an employee at Chay Lap farmstay, talks to foreign tourists in Quang Binh Province, located in north-central Vietnam. Tuoi Tre The community tourism model, inteneded to help poverty-hit areas in Vietnam, has been among many projects backed by the Asian Development Bank in recent years, and successful examples can now be observed in many regions in the north-central province of Quang Binh. Thanks to those projects, local residents who previously earned a living by working in paddy fields or collecting logs for sale, sometimes through deforestation, now understand how to conduct tourism-related business in a professional manner. The grounding for success, as observed in Chay Lap, a village in Phuc Trach Commune, Bo Trach District, is the smooth cooperation between the government, residents and a professional tourism company, with financial assistance from the ADB. Rough start Before devising the pathway to success, people and authorities in Chay Lap experienced failure despite their aspirations of embarking on tourism activities in order to create a better life. Nearly a decade ago, 75 percent of the 242 homes to 1,016 residents in Chay Lap, surrounded by mountains and rivers, were considered underprivileged. Local villagers mostly worked in paddy fields, and after harvest time, went into the woods to collect logs for sale. When authorities started to ban deforestation, Chay Lap villagers were left unsure of what to do next to make ends meet. Then came the idea of stepping into the field of tourism. In 2008, the Chay Lap Community Tourism Cooperative was formed, thanks to funding from the ADB’s official development assistance, with Vo Xuan Thai, an esteemed local man, voted its chairman. The cooperative formed part of the ADB-backed Greater Mekong Subregion Sustainable Tourism Development Project in Quang Binh. Local residents then started taking up short-term training courses on tourism, hospitality, cooking and English for tourism purposes and to prepare for a life-changing time.  A house at the Chay Lap farmstay. Photo: Liem Nguyen/Tuoi Tre News However initially, things did not turn out as easy as villagers thought. Over the course of five years, few tourists came to the village to admire the natural landscapes, including rivers and mountains, and enjoy the countryside lifestyle. Villagers would warmly welcome those few visitors, but when there were none, they returned to their farming work. There were months when each member of the tourism cooperative received dividends of only VND200,000 (US$9) or VND300,000 ($13.4). Thai, the cooperative’s chairman, admitted that they lacked the management ability to promote their business, and did not have the language ability to communicate with foreign visitors. Professional player Seeing the impending failure of the Chay Lap cooperative, the management board of Quang Binh’s Greater Mekong Subregion Sustainable Tourism Development Project decided to change their strategy: seeking cooperation from a professional tourism company. The project opened a tender for travel firms to join in developing the Chay Lap community tourism project, under the condition that the company invest in the existing facilities and resources at the village, as well as using 75 to 80 percent of the local workforce. Oxalis, known for offering adventure excursions to the famed Son Doong Cave and neighboring grottos in Quang Binh, won the bid in 2014. With the participation of a professional tourism player, the Chay Lap farmstay area was formed, eventually changing the lives of local villagers. The Chay Lap farmstay currently has 27 rooms with 62 staff, who are professionally trained by foreign experts recommended by Oxalis.  A house at Chay Lap farmstay. Photo: Liem Nguyen/Tuoi Tre News With its reputability and experience, Oxalis has also run online ads for the farmstay area, bringing professionalism to the once-poor village. Oxalis also kept its word on using local labor: 25 out of the 62 staff members are Chay Lap villagers, and the others are from nearby villages or other areas in Quang Binh. The Oxalis director, Quang Binh-born Nguyen Chau A, admitted that there were myriad difficulties in the early stage of the project, but he is determined to do even more for his home province. Le The Luc, director of the management board of Quang Binh’s Greater Mekong Subregion Sustainable Tourism Development Project, remarked that the cooperation between a professional travel firm and the local community has been “beyond [his] dreams.” He credited the success to the openness of local authorities in allowing a capable private firm to utilize public assets. Chay Lap villagers can now dream of a much brighter future for themselves and the younger generations, thanks to the farmstay tourism model. “No villager has to go to the forest to collect logs any longer,” Thai, the head of the Chay Lap cooperative, said. “The poverty rate in the village has also dropped to below 35 percent.”  A village-turned-tourist site employee at the Chay Lap farmstay. Photo: Liem Nguyen/Tuoi Tre News Life changing Le Thi Hue, a cook at the Chay Lap farmstay, is one vivid example of how the community tourism project has changed local villagers’ lives. Hue used to work all day in the field before she was recruited to the Chay Lap farmstay, where she was trained to be a chef’s assistant. She has signed a contract with the company for a monthly wage of VND3.5 million ($156), and has her husband as a colleague. The husband is in charge of maintenance at the farmstay area with a salary of VND5 million ($223) a month. It is not difficult for Hue to see how her life has changed. While the four-member family would earn VND30 million ($1,339) after a year working tirelessly in the paddy field, the husband and wife now collectively make VND8.5 million ($379) per month. After escaping poverty, Chay Lap villagers are now able to invest in education for the next generation. While most children in the village would quit school at grade three or four, there are now 47 secondary students and 13 high school students in Chay Lap. The community tourism project has brought changes not only in the income of local villagers, but also in their way of life and behavior. “There are obvious improvements in the way people here speak and behave, beautifying themselves in the eyes of tourists,” Thai remarked. TUOI TRE NEWS |
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Research and innovation critical to future of support industries The Vietnam government has set a lofty target for exports of the electronics segment of the economy for both the foreign and domestic sectors operating within the country’s borders to reach US$40 billion by 2017.  However, the development of the domestic electronics industry is still facing significant challenges says the Vietnam Electronics Industries Association as the segment is dominated in its entirety by the foreign sector. More than 90% of all sales – both local and overseas – are attributable to transnational electronics giants the likes of Samsung, Panasonic and LG with local companies largely non-existent in the segment’s support industry. The real challenge that lies ahead over the next decade is how to methodically go about increasing the participation of local companies in the segment’s support industry, said Le Ngoc Son - chair of the Association in a recent widely reported interview. Mr Son commented that, in his opinion, accomplishing the feat would require a great amount of international support in employee and business competitiveness training, technological investment, and refurbishing of manufacturing facilities. The problem is further compounded by the fact that the Government has given large foreign investors –especially those in the electronics segment – preferential incentives, such as it did with Intel in 2006, Samsung in 2010, and in recent years: Nokia, Bosch, and LG Group. It doesn’t provide these same incentives to local companies, Mr Son underscored. One of the benefits often touted in favour of providing foreign transnational companies like Intel, Samsung, Nokia and LG special favours are that they would help the domestic companies in moving from low-value-added to high-value-added manufacturing. Unfortunately, that has not transpired to date as the localization rate of the domestic sector in the electronics support industry is lacklustre, said Mr Son. A new research report by the Mitsubishi Research Institute of Japan backs up Mr Son’s views on the magnitude of the lack of competitiveness of domestic companies in the supporting industries in general in Vietnam. The report found that building the support industries of the future through enhanced productivity will require increased investment in research and development, a commitment to innovation, better links between business and research, focused international collaboration and the effective training and utilization of an innovation-capable workforce. The report commissioned by the Central Institute of Economic Management found that the success of the domestic sector in future manufacturing industries will depend largely on technological innovation, a shift to advanced manufacturing, integration with services, international connectedness and enhanced participation in global value chains. The report concluded that currently even domestic manufacturers prefer to purchase their components and other intermediary goods from overseas as opposed to purchasing them from local support industry manufacturers due to quality and other concerns. The report was rather blunt in its criticism, pointing out that collaboration among manufacturers in the country is largely non-existent, noting that even simple databases of the type normally found in all advanced economies such as those cataloguing businesses by industry type is lacking. A Samsung representative has asked the Government to focus on its underdeveloped electronics supporting industry as the huge transnational electronics company has plans to further expand its operations in the Southeast Asian nation. Currently, limited production capacity hinders the development of the supporting industry, said the report, noting that domestic sector businesses have only been able to perform simple jobs such as packaging and printing service for Samsung. To overcome these difficult challenging limitations, Dr Yoichi Sakurada from the Mitsubishi Research Institute makes some very important conclusions about measures to enhance innovation and therefore productivity. He said the report found that people and skills are key to innovation and investment in their development is lacking in Vietnam. He noted that small business support centres provided by the Government to date have been largely ineffective. They have just provided information on policies, investment formalities, survey, organization of trade fairs and exhibitions. However, local businesses need much more support in terms of technique and technology. The Japanese expert suggested that successful innovation is driven not only by a mixture of technical and scientific skills, but also by business and entrepreneurial skills and by a culture that is conducive to innovation. Business support centres, he noted, should focus on improving their technical capacity by helping domestic sector companies in the support industries innovate, study and develop new technologies. VOV |
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Article 6
BUSINESS IN BRIEF 29/11 Dong Nai’s trade surplus exceeds $2 billion  The southern province of Dong Nai ran a trade surplus of over 2 billion USD in the January-November period, according to the local Department of Planning and Investment. The province’s exports over the past 11 months reached about 13.9 billion USD, up more than 8 percent year-on-year, while imports were nearly 11.9 billion USD, up 2 percent, resulting in the highest-ever trade surplus in the locality, Sai Gon Giai Phong (Liberated Saigon) newspaper reported. Sectors that saw big export turnover include footwear, garments-textiles, timber products and seafood. With the figures, Dong Nai has become one of the four cities and provinces nationwide generating the highest trade surplus. The department said since the beginning of this year, Dong Nai has attracted 1.83 billion USD in foreign direct investment (FDI), achieving 183 percent of the set yearly target. The capital mainly comes from the Republic of Korea, Japan, Thailand and Taiwan (China). Trade exceeds 316 billion USD in eleven months Vietnam estimates total trade turnover at 316.16 billion USD between January and November, a year-on-year increase of 5.5 percent. The figure includes some 159.5 billion USD in exports and 156.66 billion USD in imports, according to the General Department of Vietnam Customs. As a result, the country is set to record a trade surplus of nearly 2.85 billion USD in the 11 months. It expects overseas shipments of 15.6 billion USD and imports of 16 billion USD in November alone, representing respective monthly rises of 1.3 percent and 1 percent. Total trade this month is expected to increase by 1.1 percent from October to around 31.6 billion USD, according to Vietnam Customs.-VNA Competitive power market key to promoting renewables Vietnam is prioritising developing a competitive electricity market, which is vital to promoting renewable energies, said Head of the Central Institute for Economic Management (CIEM) Nguyen Dinh Cung. He made the statement at a CIEM seminar in Hanoi on November 28, where participants discussed the growth of renewable energies in concert with a competitive power market. According to Pham Duc Chung, a CIEM member, renewable energy producers in Vietnam enjoy incentives in tax, land leasing prices and loans. However, the dependency of electricity firms on State support has led to a power market without competition, making it hard to attract investment in renewables. To address these shortcomings, Chung stressed continuing a complete overhaul of the Electricity of Vietnam (EVN) as planned with a focus on restructuring its executive board to boost independence among EVN members. Improving the capacity of the Electricity Regulatory Authority and Competition Authority is also necessary, he said. Nguyen Van Vy, Head of the Vietnam Energy Association, proposed preferential investment credits for renewable projects. He also suggested issuing an environmental tax on the use of fossil fuels, adding that the fees should be channeled into developing sustainable energies. Central Highlands: high coffee prices offset declining output A significant increase in coffee prices in the Central Highlands has helped offset a decline in output, according to the Steering Committee for the Central Highlands Region. The committee said a long drought significantly reduced the 2016-2017 coffee harvest. For the whole region, the output of 135,000 hectares of coffee hit by drought fellby up to 50 percent, while another 7,894 hectares died of drought. DakLak, a major coffee producer of the country, has nearly 69,000 hectares of coffee hit by drought, of which 5,570 hectares suffer from complete loss. However, coffee bean priceshave been at a five-year peak, increasing from 41,000VND to 42,000VND per kilogramme, bringing goodprofits to farmer households. According to the steering committee, the Central Highlands region has a total coffee area of 573,400 hectares, of which 532,499 hectares have been in harvest, with an estimated output of over 1 million tonnes of coffee beans. DakLakboasts the largest coffee area yielding the biggest output, with more than 453,000 tonnes of coffee beans. Nearly 10,000 new firms established in November As many as 9,918 enterprises with total registered capital of 87.1 trillion VND (3.83 billion USD) were established nationwide in November, according to the Department of Business Development under the Ministry of Industry and Trade on November 28. The figures represent a fall of 3.8 percent in volume and an increase of 6.8 percent in value compared with the previous month. They push the number of newly-established enterprises in the first 11 months of this year to 101,683, and total registered capital to 797.7 trillion VND (35.1 billion USD), a year-on-year increase of 17.1 percent and 48.1 percent, respectively. The average registered capital of a new firm reached 7.8 billion VND (343,200 USD), up 26.5 percent. The increasing trend reflects the effective measures the Government has devised to help enterprises’ development. Bankrupt firms continue to rise Up to 10,400 Vietnamese enterprises have gone bankrupt between January and November this year, up 23.3% on-year, according to the General Statistics Office. Up to 10,400 Vietnamese enterprises have gone bankrupt between January and November this year The office’s report showed during the January-November period, over 10,400 Vietnamese companies had announced their bankruptcy, up 23.6% on-year, with 93% having a registered capital of below VND10 billion (USD476,190) each. Meanwhile, the number of companies which had to halt their operations during this period reached 54,000, including up to 65% of firms waiting to be dissolved or facing the risk of closure permanently. According to the GSO, as many as 101,680 businesses were established in the 11 month period. The number of firms which resumed operations grew by 31.7% on year. Economist Pham Chi Lan said that private sector businesses were facing many difficulties such as limited management capacity, limited scale and low access to credit in the context of fiercer competition. How green produce from China enters Vietnam A huge volume of Chinese agro-produce is being transported across the border on a daily basis to Vietnam, where they will be disguised as locally grown or Thai products before being sold to consumers. Tuoi Tre (Youth) newspaper reporters have gone undercover, following dealers and truck drivers on routes thousands of kilometers long from an ‘open produce market’ in China to the wholesale markets in Vietnam, in order to see how Chinese green produce is able to penetrate so deeply into the Vietnamese market. Tuoi Tre first visited Po Chai, an open agricultural produce market in Pingxiang City in the Chinese province of Guangxi. Po Chai is considered the largest source of green produce for cross-border sales to Vietnam in southern China. Every day, several hundred metric tons of agricultural produce of all kinds are transported to Vietnam in container trucks. Most signs at the market are displayed in both Chinese and Vietnamese. On the left hand side of the venue is a large plot of land zoned for suppliers of mushrooms, grapefruits, watermelons, peanuts, grapes, tangerines, oranges and apples. The other side is a multi-hectare parking lot for container trucks exclusively carrying dragon fruits. At the back of the market is a place for onion and garlic sellers. Every five or ten minutes, a container truck will leave the market, heading toward the Tan Thanh border gate to enter Vietnam. Truck drivers claim that up to 80 or even 90% of garlic consumed every day in Vietnam originates from the Po Chai market. Po Chai is an open market in that none of the goods bear any information regarding manufacturers or expiry dates, with mushrooms the only exception. During the observation by Tuoi Tre in mid-November, some 200 different container trucks using Vietnamese license plates frequented the market. Five of them specialized in carrying mushrooms, 30 were transporting onions and 50 trucks carried oranges, tangerines and apples, all bound for different Vietnamese wholesale markets. “During peak times when demand in Vietnam is high, more than 100 trucks will leave Po Chai on a daily basis,” Linh, a Vietnamese trader of Chinese green produce, revealed. Linh added that at the Tan Thanh border gate, there are more than 50 Vietnamese companies specializing in importing Chinese agricultural products. In a typical scene observed by Tuoi Tre, one truck with the license plate of the northern Vietnamese province of Bac Giang arrived at the market at 2:00 pm, and was quickly loaded with boxes of Enokitake mushrooms. The mushrooms were put into 150g bags, bearing labels in Vietnamese and English, saying they are Chinese products with a 30-day expiration date from the packaging date of November 15. However, there was no information regarding its manufacturer or place of harvest. The truck driver revealed that he would take the mushrooms to Hanoi. Speaking to Tuoi Tre, the Vietnamese driver of another truck waiting to carry Chinese grapefruits made no secret of the fact that the fruits would be on sale as domestically grown grapefruits for VND25,000 (US$1.1) each once they had entered Vietnam. He added that the Chinese tangerine would be sold as Thai-grown fruit in Vietnam. In addition to observing trucks picking up goods at the Po Chai market, Tuoi Tre also investigated how these cross-border imports passed customs at the Tan Thanh border gate. On one day, correspondents followed a container truck registered to the southern Vietnamese province of Tien Giang, after it picked up some 1,470 20kg bags of garlic, or 29.4 metric tons, at Po Chai at 12:00 pm. The truck then left Po Chai for Tan Thanh, where it quickly completed the exit-entrance procedure, before stopping at the goods-checking zone, located some distance from the border gate. The truck spent around two hours at the checkpoint, where the driver ate lunch and took a short break. He then left and drove straight to Hanoi once he had received a set of papers from a woman. Tuoi Tre managed to obtain and review those papers and found out that the garlic shipment was imported by a company named ĐP in Lang Son, a northern Vietnamese province bordering China, and distributed to a man named Binh in the southern province of An Giang. The importer, DP, declared the imports to consist of 750 bags of garlic, weighing 15.22 metric tons, with a taxable value of VND83.5 million (US$3,728). This was only half of the actual weight of the shipment. However, in the receipt issued for Binh, DP said the goods weighed 32 metric tons and cost VND188.8 million (US$8,429). Also among the papers was a quarantine certificate, which stated that it had been “issued following a test on samples taken in the truck” even though the truck’s container had never been opened. Tuoi Tre also discovered that the aforementioned DP company’s container truck had deliberately given wrong information on not only the weight of the shipment, but also the prices of the product. Linh, the dealer of Chinese green produce, said that this is a trick used by all Vietnamese traders at Po Chai. “While the mushrooms cost VND30,000 (US$1.34) to VND80,000 (US$8.57) a kg at Po Chai, the importers will only declare them to cost around VND10,000 (US$0.45) a kg with customs,” Linh said. “That’s the unwritten ‘rule’ followed by everyone.” Workshop develops Action Plan for WTO trade facilitation agreement With support from the United States Agency for International Development (USAID), the General Department of Vietnam Customs organized a workshop to develop an action plan for implementation of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) in Hanoi on Novemrber 29. The workshop was attended by Deputy Head of the General Department of Customs, Vu Ngoc Anh, Deputy Mission Director of USAID in Vietnam Craig Hart and Director of USAID’s Economic Growth and Governance Office Michael Trueblood. The workshop brought together more than 50 government officials to develop a roadmap for implementation of the B and C commitments after the Agreement comes into effect. The officials completed reviewing the list of Category A, revalidated the B and C commitments, and developed an action plan for implementation of the B and C commitments. The action plan details activities, objectives and outputs for each commitment along with the timeframe, needed technical assistance, responsibilities of each agency, and the mechanism for coordination. The GDVC of the Ministry of Finance will report the action plan to Vietnam’s newly created National Trade Facilitation Committee (NTFC). The final list of Category B and C commitments will be notified to the WTO Secretariat when the Agreement comes into force. Once in effect, the TFA will enhance national and business competitiveness and boost trade and investment in Vietnam by committing Vietnam to reforms in support of trade facilitation. This workshop is one of a number of activities on which the USAID Governance for Inclusive Growth (GIG) Program is collaborating with the General Department of Vietnam Customs and other donors to successfully implement the TFA. The Government of Vietnam is working with USAID through the GIG Program on a number of other reforms in cooperation with Vietnam’s business community and organizations to support sustainable, inclusive economic growth in Vietnam. Quang Ninh looks to optimise maritime economic potential Located on the northern coast with advantages in location and natural resources, Quang Ninh is striving to tap its full potential in maritime economic development. As part of efforts to implement Resolution 09-NQ/TW on Vietnam’s Sea and Island Strategy until 2020, Quang Ninh has applied measures to boost its sea-based economy in line with ensuring national security and defence. In recent years, the province has focused on infrastructure building to boost maritime economic development, especially tourism and aquaculture. Currently, all Quang Ninh’s seaports have been upgraded to strengthen their capacity in providing services and connecting the mainland and islands in the region. Some seaports in the locality are being expanded to national and regional scale, including Hai Ha, Cai Lan and Cua Ong. Quang Ninh has also mobilised resources for the comprehensive development of infrastructure in coastal economic zones and industrial parks (IPs), including the Van Don EZ and Hai Ha, Dam Nha Mac, Viet Hung and Hai Yen IPs, attracting more investment. Investment promotion activities have been used to call for investment in major projects, including Van Don airport, Van Tien bridge, major seaports and roads, as well as other projects in entertainment, resorts, aquaculture and fishing. The province has built four concentrated IPs with a total area of more than 911 hectares, along with nine district-level industrial clusters spanning from Dong Trieu, Uong Bi, Yen Hung to Hai Ha and Mong Cai, with a combined area of 215 hectares. Three of the industrial clusters have leased 80% of their lands. Meanwhile, the province aims to welcome 8-10 million visitors in 2020 to earn VND5-VND6 trillion. In the first 10 months of 2016, the province saw a five percent rise in the number of visitors with 7.3 million total arrivals. The number of foreign tourists reached 2.81 million. Quang Ninh has four major tourist hubs. The Uong Bi-Dong Trieu-Quang Yen area is home to many spiritual and cultural sites, while Ha Long Bay is famous as a centre for sight-seeing, culture, shopping and entertainment. The Van Don-Co To area offers spiritual, sea and island and entertainment tourism, and the Mong Cai area is strong in sea tourism and shopping. According to the provincial Department of Tourism, Quang Ninh currently has 157 accommodation establishments rated from one- to five-stars, along with 47 travel firms and nine beaches for tourists. Recently, the provincial Department of Tourism teamed up with the Vietnam National Administration of Tourism to organise a fam trip for travel firms and media agencies across the country to various destinations around Ha Long Bay. A number of local firms, including Hoang Gia, Tuan Chau, Van Don and Mong Cai, have offered new tourism products. Realising Party and State policies on encouraging and supporting maritime economic development, Quang Ninh has created optimal conditions for businesses and individuals to access capital for boosting economic growth. So far, many projects have proved their effectiveness, contributing to the local maritime economic expansion and increasing income for locals in coastal localities. Ministry may pull the plug on Dung Quat Shipbuilding Industry Co., Ltd As reported by newswire vneconomy.vn, bankruptcy is one of the options for Dung Quat Shipbuilding Co., Ltd., Vietnam National Oil and Gas Group (PetroVietnam)’s shipbuilding subsidiary. The Ministry of Industry and Trade in its report on developing industries in the last three months of the year outlined three possible solutions for the plant. First, the ministry proposed restructuring the plant, while leaving the question whether it would remain a subsidiary of PetroVietnam open The second solution is to put the company under the management of another. This transfer would be planned by PetroVietnam. The third is to let the company go bankrupt. The ministry added that it is going identify individuals and groups responsible for the shipbuilding company’s failure. Dung Quat Shipbuilding Industry Co., Ltd., established in 2006, was a member of Shipbuilding Industry Corporation (SBIC), formerly Vinashin. In 2010, the company was transferred under the management of PetroVietnam. The company has been incurred billions of dollars in cumulative losses . According to PetroVietnam’s financial statement, as of the end of 2015, PetroVietnam was holding 100 per cent of Dung Quat Shipbuilding Industry Co., Ltd., equal to a capital of VND1.99 trillion ($90 million). PVN has made a 100 per cent provision for the risk of this investment. The report also mentioned other major projects invested by PetroVietnam, including Nghi Son Refinery, Dinh Vu Polyester Fibre and Yarn Plant, and a number of struggling biofuel plants. Specifically, the MoIT asked PetroVietnam to build a plan to consume the refinery’s products. Earlier, PetroVietnam complained about the big loss this would cause, but the plea fell on deaf ears at the ministry. As for Dinh Vu Polyester Fibre and Yarn Plant, the MoIT asked PetroVietnam to negotiate with potential partners to be involved in the plant’s management. For the ethanol plants, the MoIT asked PetroVietnam or PVOil to sign cooperation contracts with localities and companies on distributing its E5 fuel product. PVOil should also look for another investor to buy its stake in PetroVietnam Bio-Fuels JSC (PVB). Processors fraught with tra fish shortfall China's huge demand has driven up prices of unprocessed tra (Pangasius) fish in the Mekong Delta, putting domestic processors on edge. The total acreage under Pangasius farming has reached 5,352 hectares this year, up 4% year-on-year, which has sent output soaring 9% to 996,000 tons, according to data of the Ministry of Agriculture and Rural Development. Key farming areas in the Mekong Delta have reported a substantial increase in Pangasius fish production. For instance, Dong Thap Province has turned out 325,000 tons of tra fish, a 19% increase, Can Tho City 140,000 tons, up 24%, and Ben Tre Province 155,000 tons, up 11%. However, prices of the fish have picked up to VND22,000-22,500 per kilo. In October 2015, Vietnam harvested around 946,000 tons, a 6% rise over the same period of 2014, but the price fell to VND20,000 per kilo. Big demand of the Chinese market is attributable to the price hike. China imports processed and unprocessed fish from the Mekong Delta. Truong Dinh Hoe, secretary general of the Vietnam Association of Seafood Exporters and Producers (VASEP), said 70% of the current tra output is from farms of enterprises, and the rest from individual farmers who often choose to sell to Chinese traders, leading to a shortfall of fish at local processors. Hoe urged local processing firms to draw up plans to secure sufficient Pangasius stock or their production will be severely affected. Data of VASEP shows that Pangasius exports have totaled nearly US$1.4 billion so far this year, with around 40% of it coming from the U.S. and China. Shipments to China alone have surged 76% year-on-year to US$235.5 million. VASEP predicted China would overtake the U.S. as the biggest importer of Vietnam’s tra fish next year. Public consultation on Long Thanh International Airport design The Airports Corporation of Vietnam (ACV) on Monday displayed nine design options for Long Thanh International Airport for public consultation. The designs which will be displayed until December 12 at the Vietnam Exhibition Centre for Culture and Arts at.2 Hoa Lu Street, Hanoi. Visitors to the exhibition are encouraged to offer their opinions and make suggestions. ACV said that they will also bring these designs to display in Danang from December 16-25, Dong Nai from December 28 to January 11, 2017 and HCM City from January 13-23, 2017. The nine designs were selected from a contest held recently by ACV to find the best design for the passenger terminal of the Long Thanh International Airport in the southern province of Dong Nai. Contestants were required to design a passenger terminal with total floor space of around 400,000 square metres and handle 25 million passengers a year in the first phase. It should meet the requirements of the International Civil Aviation Organisation and the International Air Transport Organisation for services at leading airports around the world. The passenger terminal should also be connected consistently with infrastructure facilities at the airport and in line with the approved master zoning plan for the multi-billion airport, which is envisioned becoming an aviation hub in Southeast Asia. The long-awaited project is expected to start in 2019 with total investment amounting to USD16.03 billion. The project will be divided into three phases and is planned to handle 100 million passengers and 5 million tonnes of cargo a year. The project will be financed by the State budget, official development assistance loans, capital contributed by enterprises, proceeds from equitisation of state-owned enterprises and other sources. Consumption loans jump in HCM City Consumer credit in HCM City has grown by an average of 20 per cent per year during 2012-2015, according to the State Bank of Viet Nam. Nguyen Hoang Minh, Deputy Director of State Bank’s HCM City branch said consumption loans during this period accounted for between 6 per cent and 8 per cent of the city’s total outstanding loans. This figure, he said, has strongly increased this year. By the end of October this year, it was VND201 trillion (US$8.9 billion), accounting for 14.7 per cent of the city’s outstanding loan. This figure will continue to rise, Minh said, explaining that 40 per cent of consumption loans in HCM City are for buying cars, houses and housing upgrades. To develop consumption lending activity in HCM City in particular and in the country in general, Minh said that the State Bank was collecting ideas to further develop a consumption loan draft law, which is planned to be effective next year. This is the second time that the SBV has sought to collect ideas about consumer credit. Until now, regulations have applied to all lenders, including banks and credit companies, even though their borrowers are different. Thus, the new draft regulation is aimed at helping to create convenient conditions for both borrower and lender as well as to have a more transparent market. At a recent conference organised in HCM City, Bui Quang Tin, an expert from Banking University in HCM City said the second draft had many updates necessary for the current time when consumption lending is strongly developing. “It is amended with stricter regulations and will help the market to be more stable,” Tin said. The new draft would help consumers get official loans from credit companies instead of from the black market, he said. Sharing the same idea, Vuong Thuy Tien, a high-ranking official from private lender Home Credit Viet Nam said the draft had clear regulations about the rights and responsibilities of credit companies. “This is an important amendment in order to have a sound credit market as well as to protect customer rights,” she said. However, experts say that some of the proposed changes to the regulation don’t reflect reality. One among them is the proposed regulation saying that the maximum consumption loan should be VND10 million (US$444). Pham Hai Van, Legal Director of FE Credit, said this level was too low. She explained that the current smallest loan to buy a motorbike was about VND17 million ($772). Sharing the same idea, Tien from Home Credit said loans ranging from VND10 million ($444) to VND30 million represented 71 per cent of her company’s total contracts. Only 10 per cent of contracts are valued under VND10 million. They also said that the maximum interest rate for overdue debt of 150 per cent per month on top of the initial interest rate in the proposed regulation was not high enough. Tien said this regulation would force credit companies to change their products. For instance, Home Credit is currently able to charge 0 per cent interest on about 65 per cent of the company’s debt. If the proposed cap of 150 per cent on overdue loans were implemented, Home Credit would not be able to afford to offer loans with 0 per cent interest rates. This new regulation should not be applied to loans with tax exemptions, she said, adding that that would cause difficulties for a credit company to control bad debt. Tin said “currently, the draft protects consumers more than credit companies, who would face many difficulties in getting loans back.” He suggested applying a maximum interest rate of 200-250 per cent in addition to the initial rate for bad debt. For debt with tax exemptions, the rate should be based on the amount of debt that the consumer had not paid. Minh affirmed that State Bank of Viet Nam was still collecting ideas from related subjects. All ideas would be sent to the bank for further consideration. Vietnam Expo 2016 to be held in HCMC The 14th Vietnam Expo will take place at the Saigon Exhibition and Convention Centre in HCM City from November 30 to December 3. It is expected to draw the participation of businesses from more than 20 countries and territories, including Indonesia, South Korea, mainland China and Taiwan. According to the Ministry of Industry and Trade, with the sponsorship of Mobifone, the event will provide a platform for businesses to meet, expand and promote trade and investment. Indonesia is the country of honour at this year’s expo, sending over 60 businesses to display modern technology products at the event. The South Korea’s state businesses and provincial trade organisations, such as the Bucheon Chamber of Commerce and Industry, and representatives of Incheon, Suwon and Daejeon authorities will be among those present. Nearly 100 Korean businesses will introduce their latest technologies, services and products at the expo. The event will also see the introduction of hardware tools and eco-friendly technologies. Vinatex transfers Hanosimex holding to new subsidiary The Vietnam National Textile and Garment Group (Vinatex) has announced the transfer of 11.8 million shares in the Hanoi Textile and Garment JSC (Hanosimex) to the recently-established Northern Corporation (VNC Corp), to contribute capital to the new company. The number of shares transferred is equivalent to 57.5 per cent of Hanosimex’s charter capital, meaning Vinatex is no longer its major shareholder. Vinatex launched VNC Corp on April 12. The new company has charter capital of VND500 billion ($22.4 million) and was formed following a merger of four Vinatex subsidiaries: the Dong Xuan Knitting Sole Member Limited Liability Company, the Vinatex Hong Linh JSC, the Ha Noi Textile and Garment Joint Stock Corporation, and the 8-3 Textile Limited Company. Vinatex’s revenue in the third quarter stood at VND4.1 trillion ($18.4 million) and after-tax profit VND152 billion ($6.6 million). In the first nine months of this year revenue reached VND11.3 trillion ($497.2 million) and after-tax profit VND455 billion ($20 million). Vinatex has targeted export turnover of $2.6 billion this year, representing growth of 10 per cent. “The US, Japan and the EU will remain key markets for Vinatex,” Ms. Pham Ngoc Han, Head of the Shareholder Relations and Information Communications Department at Vinatex, told VET in June. The group also aims to develop the original equipment manufacturer (ODM) - free-on-board (FOB) model as a breakthrough in increasing its competitiveness domestically and with textile exporters in other countries such as China, India, and Bangladesh. Last year it established a Supply Chain Development Center (SCDC) and two corporations in the north and the south of the country to create a supply chain from raw materials to finished products, making the most of production capacity at its subsidiaries. CEO Mr. Le Tien Truong told its annual general meeting that the group will implement a range of solutions to record growth of 10 per cent this year, including supporting its subsidiaries to expand markets and improve market share and establishing an FTA research team to develop business plans and avoid internal competition. Vinatex now has 85,000 employees earning an average monthly income of VND6.3 million ($284). Last year its industrial production value stood at over VND36 trillion ($1.62 billion), revenue VND39.5 trillion ($1.77 billion), and pre-tax profit VND628 billion ($28.2 million). Vietnam’s textile sector was expected to benefit from the TPP, but after US President-elect Donald Trump said the country would withdraw from the deal the future is now uncertain. “If the TPP is implemented it will bring many benefits to Vietnam in many sectors,” said Minister of Industry and Trade Tran Tuan Anh. “Vietnam’s key export products like textiles, garments, footwear, and seafood will likely see breakthroughs in export value to the US, Japan and Canada. If the TPP is not implemented, Vietnam still has other export markets.” Tek Experts expands operations in Vietnam Tek Experts Vietnam, a subsidiary of multinational group Tek Experts has unveiled its new headquarters on Sunday (November 270. The headquarters is located at Level 16 of South Korean-built Lotte Centre Hanoi, marking a new phase of the company's growth in Vietnam. The spacious and cutting-edge new office is part of Tek Experts' plan to launch Vietnam as one of its strategic markets on the world map. Yaniv Natan, founder of Tek Experts, said that “After almost four years in Vietnam, we’ve grown from a small team of only 20 to being an operation that now employs more than 250 and this is just the start of our journey. We have ambitions plans to grow the size of our Vietnamese operation to more than 1,000 over the next two or three years because we believe Hanoi is perfectly placed to help us better serve Tek Experts’ customers in Southeast Asia and internationally.” Tek Experts’ philosophy is to offer a highly customer-centred approach to technical support and professional services and we believe Hanoi offers the perfect combination of a business-friendly environment and a strong talent base that is crucial to our development and growth, Yaniv added. Nguyen Manh Tuong, country manager of Tek Experts Vietnam also said that Tek Experts constantly strives to offer the best environment for its people to grow, to develop their skills and expertise, and to become the leaders. “We’re committed to providing best-in-class training programmes, to supporting our people throughout their careers and, with our new state-of-the-art office, provide an exciting and innovative environment for them to work.” “With our plans for growth and expansion across the world we’re able to offer exciting opportunities to people across Hanoi looking to pursue a rewarding career in the information and technology industry and we’re excited to become an employer of choice in Vietnam,” he said. With offices and employees worldwide, Tek Experts is dedicated to provide industry-leading software support, application development, training and education, sales support, customer care, hardware support and software solutions across Europe, Asia and the Americas. 11M FDI disbursement up y-o-y Total disbursement of foreign direct investment in the first eleven months of this year stood at $14.3 billion, up 8.3 per cent year-on-year, according to the latest report from the Ministry of Planning and Investment (MPI). New and additional FDI capital totaled $18.1 billion, representing 89.5 per cent of the figure in the same period of 2015. As at November 20, 2,240 new projects had been granted investment licenses with total registered capital of $13 billion, equal to 96.1 per cent of the figure in the same period last year, while 1,075 existing projects added $5.07 billion in capital, equal to 76.1 per cent. Export turnover in the FDI sector (including crude oil) in the first eleven months was $114.1 billion, up 8.6 per cent compared to the same period last year and accounting for 71.5 per cent of the total. Excluding crude oil the figure was $112 billion, up 10.3 per cent and accounting for 70.2 per cent. Import turnover in the FDI sector was $92.8 billion, a 3.6 per cent increase year-on-year and accounting for 59.2 per cent of total import turnover. The sector therefore recorded a trade surplus of $21.2 billion including crude oil and $19.1 billion excluding crude oil. Nineteen sectors received investment, in which manufacturing and processing attracted the most, with 907 newly-registered projects and 766 projects adjusting their capital, for a total of $13.41 billion, or 74.1 per cent of all registered capital in the first eleven months. Real estate was second, with 49 new projects and total capital of $740.9 million, or 4.1 per cent of the total. Following the US election, most commentators believe President-elect Donald Trump will no longer continue with the proposed TPP agreement. "It is too early to say whether the agreement will be scrapped altogether or an amended, watered down version will be adopted," said Mr. Stephen Wyatt, Country Head of real estate consultants JLL. If the TPP is adopted in its current form, Mr. Stephen Wyatt believed Vietnam would stand to be one of the largest beneficiaries, which would filter down into the real estate market, due to the increased FDI the country would witness. "If the TPP does not proceed, the level of FDI will be less, but Vietnam has signed a number of other FTAs with other countries and regions recently, which will help to keep FDI at a healthy level," he added. Professional activities and science and technology ranked third, with $684.84 million, or 3.8 per cent. Foreign investment came from 68 countries and territories, led by South Korea, with total new and additional capital of $5.2 billion, or 29.2 per cent of the total. Singapore followed, with $2.05 billion, or 11.3 per cent, then Japan with $1.95 billion, or 10.8 per cent. Fifty-four cities and provinces received investment, led by northern Hai Phong city with 45 new projects and 35 projects adjusting their capital, totaling $2.74 billion, or 15.2 per cent of the total. Southern Binh Duong province was second, with new and additional capital of $1.93 billion, or 10.7 per cent, followed by southern Dong Nai province, Hanoi and Ho Chi Minh City, with total new and additional capital of $1.87 billion, $1.84 billion and $1.32 billion, respectively. Projects granted investment licenses in the first eleven months included the LG Display Hai Phong project, with capital of $1.5 billion, the LG Innotek Hai Phong Plant, with $550 million, a $315.46 million seaport and industrial park complex in Quang Yen town, Quang Ninh province from the CDC Corporation, headquartered in the Cayman Islands, the Middle Utilities Company Pte. Ltd from Singapore, and the Infra Asia Investment Limited from Hong Kong, and Amata Long Thanh City in Dong Nai province, with $309.3 million from Thailand’s Amata Corporation. Farming exports bring in US$29.1 billion in 11 months Vietnam brought in US$29.1 billion from agricultural, timber and fishery exports in the first eleven months of the year, up 5.9% over the same period of last year. Revenues in November alone were estimated at US$2.69 billion, according to the Ministry of Agriculture and Rural Development. During this period, Vietnam shipped 4.54 million tonnes of rice, earning US$2 billion, down 25% in volume and 20.3% in value compared with the first eleven months of 2015. The decline in value was less than that in volume because average prices in the first ten months were up 5.6%. China has remained the largest buyer of Vietnamese rice with 36%, followed by Ghana, which accounted for 11.5% of Vietnam’s total rice exports. Rubber export revenues went up 4.6% to US$1.43 billion along with a 12.3% increase in shipment volume, estimated at 1.1 million tonnes. Exports to China and India accounted for nearly two thirds of Vietnam’s rubber exports. Coffee and cashew exports continued to see steady growth, earning US$2.98 billion and US$2.59 billion, respectively. Exports of timber and timber product brought in US$6.2 billion—largely unchanged from the same period of last year—while seafood revenues increased 6.9% to US$6.4 billion. The US, Japan, China and the Republic of Korea were the largest importers of Vietnamese seafood, accounting for more than half of the country’s total shipments in the first ten months of this year. SCG Packaging launches new packaging solutions Recently, in the VietFood & Beverage – ProPack 2016 exhibition, SCG Packaging – a subsidiary of SCG has introduced its latest packaging technologies in a wide range of high quality packaging products under the theme of “Answers for Food Industry”. The focus of this exhibition is flexible packaging alternatives serving for extensive demands of food industry, including packaging for frozen food, dried food, animal feed and especially SCG’s own food packaging brand called “FEST”: Food Grade Packaging made of virgin pulp to reduce the use of non-biodegradable plastic and foam. These food safety products also come in various sizes and shapes to fit with different types of contained food, and also serve as safe alternatives for consumers who, nowadays, have been more and more concerned about their health. “Vietnam has a growing population with rising demands for fast moving consumer goods, especially in Food and Beverage industry. This puts forth a challenge for packaging providers to find more sustainable solutions that are high quality, safe for health and also environmental friendly, to answer the ever-changing requirements of this highly competitive sector,” said Mr. Somchart Patamamongkonchai, General Director of Tin Thanh Packing Joint Stock Company (Batico). “As our commitment to be the Total Packaging Solutions Provider for all industries, SCG Packaging would like to ensure our customers that we can offer wide-ranging high quality packaging and solutions which match their requirements and could help them grab the leading position in this market”. The event highlights various types of high quality packaging alternatives that could reveal the use of the amazing packaging technology regarding both printing and structure. Some of the key products include: -Valve Coffee Bag for Coffee & Beverage Industry: a coffee packaging attached with one-way degassing valve which releases a gas produced by newly roasted coffee beans and prolongs coffee’s life and quality. -Flat Bottom Bag: a packaging for more premium appearance and perfectly stable shape of the products whenever they are put on shelf. -SCG’s own packaging brand “FEST” for freshly cooked food: Food Grade Packaging made of virgin pulp to reduce the use of non-biodegradable plastic and foam. This invention, developed solely by SCG is first to be awarded GMP (Good Manufacturing Practice) in Thailand, on par with EU standards, USFDA standards, and EU regulations. It addresses consumer needs and promotes better health for consumers. SCG Packaging is one of SCG’s core businesses dedicated to becoming a total packaging solution provider. The company pledges to deliver a broad spectrum of innovative products and services as well as packaging solutions that add value for customers and consumers. Backed by highly skilled personnel with world-class know-how and expertise, SCG Packaging carries out business in tune with the principles of corporate governance and with a relentless commitment to sustainable development encompassing economic, social, and environmental aspects. Vietnam Airlines, Vietjet offer cheap tickets at VND 0 The national flag carrier Vietnam Airlines (VNA) is offering a promotional discount of 20-30 percent on some domestic and international routes in November and December. Accordingly, after using promotional code toward a purchase on Friday, Saturday and Sunday in November and December, Vietcombank cardholders will receive a promotional discount of 20 percent for domestic flights and 30 percent on international routes from Vietnam to Thailand, Singapore, Malaysia, Indonesia, Laos, Cambodia, Myanmar, China, Japan, South Korea, Hong Kong (China), and Taiwan (China). Meanwhile the low-cost carrier, Vietjet will give 1.5 million tickets costing at just VND0 on some domestic and international routes from December 1- November 28 (excluding public holidays). The special price will be applied for international routes from Vietnam to Hong Kong (China); Pusan and Seoul of South Korea; Kaohsiung Taipei, Taichung, Tainan of Taiwan (China); Singapore, Thailand’s Bangkok, Kuala Lumpur in Malaysia and Myanmar’s Yangon. Passengers can buy tickets for local flights departing from December 1-March 25, 2017 and international flights taking off on December 1-November 28, 2017 at 12 p.m. -2 p.m. FDI disbursement reaches $14.3 billion in 11 months Foreign direct investment (FDI) disbursements reached $14.3 billion during the first 11 months this year, a year on year increase of 8.3 percent, reported Foreign Investment Agency under the Department of Planning and Investment. FDI capital totaled US$18.1 billion accounting for 89.5 percent of the number during the same period last year, 2,240 new projects were licensed and 1,075 projects registered to adjust investment capital. Foreign investors invested in 19 industries and fields in Vietnam. Of them, manufacturing and processing field was the most attractive one with the total capital of $13.41 billion from 907 new and 766 capital adding projects. Hai Phong city attracted the highest FDI capital totaling $2.74 billion from 45 new and 35 capital adding projects, followed by Binh Duong province with $1.93 billion, Dong Nai $1.87 billion, Hanoi $1.84 billion and HCMC $1.32 billion. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR |
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Article 5
False fish sauce survey sponsored by Ogilvy Vietnam: gov’t
 A man is seen at a traditional Vietnamese fish sauce making facility.Tuoi Tre The government gave an answer on Tuesday to one of the most burning questions emanating from a report that sparked false concern over the safety of traditional Vietnamese fish sauce: who sponsored the controversial survey? Misleading findings about the safety of Vietnamese fish sauce, as claimed in a report released in mid-October by the Vietnam Standards and Consumers Association (Vinastas) overshadowed a government meeting in Hanoi on Tuesday, with the media demanding the state give more details about the case. The meeting came hot on the heels of a public apology issued by Vinastas, which was also blasted for its lack of sincerity as the non-profit association put responsibility for the survey on its team members instead of its leaders. Despite the apology, the media has continued questioning the government over what the exact violations of Vinastas are, how they will be penalized, and whether there was a commercial sponsor behind the controversial survey. In response, Minister Mai Tien Dung, chairman of the Government Office, said Vinastas had violated the law on food safety by releasing inaccurate information, and laws surrounding consumer protection. “The survey was carried out under the sponsorship of T&A Ogilvy JVC Ltd., contravening the rule that it be independently conducted,” Minister Dung said. The Government Office chairman added that Prime Minister Nguyen Xuan Phuc has been briefed of all violations by Vinastas.  Vinastas has been under fire since its survey last month claimed that over two-thirds of the 150 fish sauce samples it tested contained more than the maximum allowable level of arsenic content per liter (1 gram). It was discovered later that the non-profit organization had deliberately released its findings in a misleading way, causing unnecessary fear among consumers. According to the Ministry of Health, arsenic exists in both organic and inorganic forms, but only the latter is toxic. The arsenic in traditional fish sauce is organic, and Vietnam’s food watchdog sets no limit on organic arsenic content in fish sauce. Traditional fish sauce is made from fermented fish, and only contains the non-toxic organic arsenic, while mass-produced sauces are made with artificial flavoring. The Vinastas survey suggested that traditionally-made sauces were toxic. It was widely believed that the association had been sponsored to conduct the survey and released the findings in a deliberately misleading way. T&A Ogilvy JVC Ltd. is a venture formed in 2009, after Ogilvy & Mather, a WPP company, acquired a majority stake in Hanoi-based T&A Communications, a leading public relations agency in Vietnam. The venture formalizes a working relationship that T&A Communications has had with the Ogilvy Public Relations Group since 2002, Ogilvy & Mather said in a press release in July of that year. T&A Ogilvy is now part of the growing Ogilvy & Mather Group in Vietnam that includes Ogilvy & Mather Advertising, Ogilvy Public Relations, Ogilvy One, OgilvyAction and Redworks. T&A Communications was formed in 1996 in Hanoi and has grown to become one of the country's leading public relations companies, with a branch office in Ho Chi Minh City. The company has a client base comprised of major multinational and leading local brands, including Amway, Boeing, Canon, Nestlé Vietnam, Standard Chartered Bank, Temasek Holdings, Tata Steel, VietJet Air, and Yahoo!, according to Ogilvy & Mather. TUOI TRE NEWS |
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BUSINESS IN BRIEF 30/11 Vietnam urged to tap wind power potential  Vietnam has great potential for developing wind power but big initial investment, technical complexity and a lack of quality technicians are deterring the development of the sector. At a workshop on wind power held in Hanoi on November 29, Ingmar Stelter, Director of the Energy Support Programme between the Ministry of Information and Communications and the German Agency for International Cooperation (GIZ), said Vietnam has a long coastline with an estimated wind power capacity of 24GW. However, the total capacity of Vietnam’s existing wind power farms has just reached 159.2MW. According to Deputy Minister of Industry and Trade Hoang Quoc Vuong, the main causes hindering the development of wind power are the high production cost while purchase prices are low, which discourages investors. The domestic supply sources for parts, equipment and services are lacking, as are qualified technicians. Vuong said the Vietnamese government is continuing with efforts to perfect the legal framework and improve the organisational structure and management method in the wind power sector. The Ministry of Industry and Trade is revising wind power selling prices for facilities on land and at sea in the direction of increasing the prices according to Decision 37/2011/QD-TTg of the Prime Minister. Naveen Raghavan Balachandran from Vesta, a Danish group specialising in manufacturing wind turbines and supplying related services, said the group will assist Vietnam in training workers and technicians. He also suggested Vietnam revise its policy to attract private investors in the sector. According to the adjusted national power master plan for 2011-2020 with a vision to 2030, total wind power capacity is projected to reach 800 MW by 2020 (0.8 percent of the country’s power output), 2,000 MW (one percent) by 2025 and 6,000 MW (2.1 percent) by 2030. HCM City’s CPI up 0.55 percent in November Ho Chi Minh City’s consumer price index (CPI) in November increased 0.55 percent from the previous month, and 3.77 percent compared to the same month last year, the municipal Statistics Office reported on November 29. Growth was seen in six out of the 11 major goods and services groups with the highest hike reported in transportation at 1.78 percent due to the increased price of fuels. Other groups recorded price hikes were food and catering services with 1.07 percent; housing, electricity and water (0.24 percent); other goods and services (0.13 percent); beverage and cigarette (0.05 percent); and apparel, headwear and footwear (0.01 percent). Especially, in the restaurant and catering service group, foodstuff rose 1.77 percent, dine-out climbed 0.26 percent, while food dropped 0.15 percent. Some commodities experienced a drop in their prices, including cultural, entertainment and tourism products with 0.01 percent, and home appliances, 0.1 percent. Prices of the groups of telecommunication; pharmaceutical products and health services; and education remained stable in the reviewed period. The price of US dollar rose 0.33 percent, while the gold price climbed 0.61 percent against the previous month. Seminar discusses action plan for trade facilitation agreement A seminar discussing action plans for the implementation of the World Trade Organisation (WTO)’s Trade Facilitation Agreement (TFA) took place in Hanoi on November 29. The TFA was adopted by the WTO members at the Bali Ministerial Conference in 2013 and written into WTO rules 11 months later. The agreement aims to set out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues while enhancing technical support and capacity building in the area. With three sections including 24 provisions, the TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also includes Category A commitments, which will be delivered immediately upon entry into force; Category B commitments, which can be delivered 2-3 years later; and Category C commitments, for which assistance and support are needed. As the TFA is to come into force, participants reviewed the final list of Category A commitments regarding complaint procedures, fees, consultation; reevaluated requirements in Category B and Category C commitments, said Director of the Vietnam General Department of Customs’ International Cooperation Department Nguyen Toan. Asked about e-payment for exports-imports, a senior expert from the World Bank said the use of credit or ATM cards is encouraged and non-obligatory. Several participants proposed Vietnam launch a national e-portal to update the public about trade facilitation issues. Vietnam was the 54th out of the 64 WTO members which approved the TFA. The agreement would come into effect when it was approved by at least two-thirds of the WTO members, or 108 member countries./ Long An rolls out red carpet for foreign investors The Mekong Delta province of Long An has taken many measures to improve its investment environment in order to attract foreign investors. According to Nguyen Van Duoc, Vice Chairman of the provincial People’s Committee, the FDI economic sector has not only directly contributed to the province’s economic growth but also created jobs for locals and those from other localities. The sector created a motive for the province to perfect its investment environment, policies and institutions, administrative procedures, infrastructure and human resources development, he said. According to a provincial report, Long An has had 828 registered FDI projects with a total capital of 5 billion USD. Of which, 459 projects have been put into operation, accounting for 60 percent, and FDI disbursement hit 3 billion USD, or 60 percent of total registered capital. The provincial Party Secretary Pham Van Ranh said Long An sets to become an industrialised province by 2020. It will build high-quality industrial parks to call for foreign investors and create key industrial sectors. Improving the investment environment is one of Long An’s focuses, he said, adding that the province makes specific annual plans on improving provincial competitive index and streamlines administrative procedures, especially those on land, tax and customs. In addition, the province will also concentrate on completing the infrastructure system, particularly transport, electricity and water to provide all necessary conditions for investment projects to effectively operate in the locality. According to Tran Van Can, Chairman of the Long An People’s Committee, the province pledges to create a favourable and healthy business environment for investors, especially foreign ones. However, investment projects must use environmentally friendly technologies, he noted. Long An currently has 28 industrial parks with a combined area of 10,220 hectares, of which 16 are operating with a occupancy rate of 61 percent. Besides, the province also has 32 industrial clusters covering 3,368 hectares, with 14 operational with an occupancy rate of 88 percent. Quang Ninh calls for Japanese city’s investment in agriculture The northern province of Quang Ninh has called on investors from Japan’s Asahikawa city to seek partnership with local firms, especially in agriculture. During a working session with a delegation of Asahikawa’s Government’s officials and businesses on November 28 in Quang Ninh, Dang Huy Hau, Vice Standing Chairman of the provincial People’s Committee introduced the economic and agricultural development in the province. He highlighted that Quang Ninh has a large market both at home and abroad for agricultural products, adding that local farm produces are diverse and abundant, especially aquatic products. Recently, the province has restructured its agriculture sector towards a goods-producing agriculture. However, production has yet to meet the market demands, he said. Hau attributed the situation to the small scale of agricultural production in the locality, along with poor technology, which forced local firms to export only raw material with low value. He underscored that Quang Ninh is keen on cooperating with businesses from countries with developed agriculture to help the locality boost sector’s growth to meet requirements of domestic and foreign markets. This is among priority of the province currently, he revealed. Hau noted that over the past years, Quang Ninh has partnered with a number of foreign firms, including those from Japan in producing safe agricultural products, which has seen a number of achievements. He held that the meeting is a good chance for agricultural enterprises in Quang Ninh to set up comprehensive and effective affiliation with their Japanese counterparts. He proposed that the Japanese Asahikawa delegation will support Quang Ninh’s firms in conducting joint projects in the locality. The Asahikawa delegation made fact-finding tours to Quang Ninh’s Hong Thai Tay high-tech agricultural production area to sea the current production technology in the site. Basing on what the Japanese firms have learnt during the visit, Hau suggested that the Japanese side design financial and human resources plan for cooperation projects, while implementing pilot projects in the field of agriculture in coordination with local firms of Quang Ninh, which will be expanded later. Earlier, the Asahikawa delegation also visited a number of agriculture firms, including Viet Long company, Song Hanh company in Quang Yen town, and Hoa Phong high quality agricultural product production cooperative in Dong Trieu town. On the framework of the visit, leaders and local businesses of Asahikawa city visited a number of markets and trade centres in the locality. Vietjet offers promotional air tickets New-age carrier Vietjet will bring out 1.5 million promotional tickets priced from only 0 USD at www.vietjetair.com on the occasion of its 5th anniversary “Sky Connection” concert in Ho Chi Minh City. The promotion, during the golden hours 12h to 14h daily from November 28 to December 11, 2016, applies for all domestic route within Vietnam and international ones connecting Ho Chi Minh City/Hanoi with Hong Kong, Busan, Seoul (the Republic of Korea), Taipei, Kaohsiung, Tainan, Taichung (Chinese Taiwan), Singapore, Bangkok (Thailand), Kuala Lumpur (Malaysia) and Yangon (Myanmar). Specially, the 50 first persons booking air tickets within the promotion time and making payment right away will win 50 free “Sky Connection” Concert tickets every day. The promotion applies for traveling from December 1, 2016 to March 25, 2017 (for domestic routes) and from December 1, 2016 to November 28, 2017 (for international routes) excluding national holidays. Promotional tickets are also available for booking at https://m.vietjetair.com (for smart phones) or at www.facebook.com/vietjetvietnam (just click the “Booking” tab). Payment can be easily made with debit and credit cards of Visa, MasterCard, JCB, KCP, and American Express and ATM cards issued by 29 Vietnam’s banks that have been registered with internet banking. The “Sky Connection” Concert will bring together multi-generational music idols performing on the same stage, and is the first event of its kind to be held in Vietnam. The event will also contrast the two unique and inspirational performance styles of two world class bands. The event features some of Vietnam’s top singers, including Thu Minh “Sexy Queen” and Son Tung M-TP “Vietnam Idol,” along with the appearance of Vietnamese top model Thanh Hang, supermodel Lan Khue and Miss Universe Vietnam Pham Huong. The concert was designed to be an astonishing gift to music lovers, and is held under the auspices of Vietjet’s 5th Anniversary. With its high-quality services, special low-fare tickets and diverse ticket classes, Vietjet offers its passengers enjoyable flights with dynamic and friendly flight crew, comfy seats, amazing hot meals and special surprises from the airline’s inflight activities. Vietjet is the first airline in Vietnam to operate as a new-age airline with low-cost and diversified services to meet customers’ demands. It provides not only transport services but also uses the latest e-commerce technologies to offer various products and services for consumers. The carrier recently became a fully-fledged member of International Air Transport Association (IATA) after receiving the IATA Operational Safety Audit (IOSA) certificate two years ago. Vietjet was also named as one of the Top 500 Brands in Asia 2016 by global marketing research company Nielsen and “Best Asian Low Cost Carrier” at the TTG Travel Awards 2015, which compiles votes from travelers, travel agencies and tour operators in throughout Asia. The airline was also rated as one of the top three fastest growing airline brands on Facebook in the world by Socialbakers. Currently, the airline boasts a fleet of 40 aircraft, including A320s and A321s, and operates 350 flights each day. It has already opened 53 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, the Republic of Korea, Chinese Taiwan, China and Myanmar. It has carried nearly 30 million passengers to date. Research and innovation critical to future of support industries The Vietnam government has set a lofty target for exports of the electronics segment of the economy for both the foreign and domestic sectors operating within the country’s borders to reach US$40 billion by 2017. However, the development of the domestic electronics industry is still facing significant challenges says the Vietnam Electronics Industries Association as the segment is dominated in its entirety by the foreign sector. More than 90% of all sales – both local and overseas – are attributable to transnational electronics giants the likes of Samsung, Panasonic and LG with local companies largely non-existent in the segment’s support industry. The real challenge that lies ahead over the next decade is how to methodically go about increasing the participation of local companies in the segment’s support industry, said Le Ngoc Son - chair of the Association in a recent widely reported interview. Mr Son commented that, in his opinion, accomplishing the feat would require a great amount of international support in employee and business competitiveness training, technological investment, and refurbishing of manufacturing facilities. The problem is further compounded by the fact that the Government has given large foreign investors –especially those in the electronics segment – preferential incentives, such as it did with Intel in 2006, Samsung in 2010, and in recent years: Nokia, Bosch, and LG Group. It doesn’t provide these same incentives to local companies, Mr Son underscored. One of the benefits often touted in favour of providing foreign transnational companies like Intel, Samsung, Nokia and LG special favours are that they would help the domestic companies in moving from low-value-added to high-value-added manufacturing. Unfortunately, that has not transpired to date as the localization rate of the domestic sector in the electronics support industry is lacklustre, said Mr Son. A new research report by the Mitsubishi Research Institute of Japan backs up Mr Son’s views on the magnitude of the lack of competitiveness of domestic companies in the supporting industries in general in Vietnam. The report found that building the support industries of the future through enhanced productivity will require increased investment in research and development, a commitment to innovation, better links between business and research, focused international collaboration and the effective training and utilization of an innovation-capable workforce. The report commissioned by the Central Institute of Economic Management found that the success of the domestic sector in future manufacturing industries will depend largely on technological innovation, a shift to advanced manufacturing, integration with services, international connectedness and enhanced participation in global value chains. The report concluded that currently even domestic manufacturers prefer to purchase their components and other intermediary goods from overseas as opposed to purchasing them from local support industry manufacturers due to quality and other concerns. The report was rather blunt in its criticism, pointing out that collaboration among manufacturers in the country is largely non-existent, noting that even simple databases of the type normally found in all advanced economies such as those cataloguing businesses by industry type is lacking. A Samsung representative has asked the Government to focus on its underdeveloped electronics supporting industry as the huge transnational electronics company has plans to further expand its operations in the Southeast Asian nation. Currently, limited production capacity hinders the development of the supporting industry, said the report, noting that domestic sector businesses have only been able to perform simple jobs such as packaging and printing service for Samsung. To overcome these difficult challenging limitations, Dr Yoichi Sakurada from the Mitsubishi Research Institute makes some very important conclusions about measures to enhance innovation and therefore productivity. He said the report found that people and skills are key to innovation and investment in their development is lacking in Vietnam. He noted that small business support centres provided by the Government to date have been largely ineffective. They have just provided information on policies, investment formalities, survey, organization of trade fairs and exhibitions. However, local businesses need much more support in terms of technique and technology. The Japanese expert suggested that successful innovation is driven not only by a mixture of technical and scientific skills, but also by business and entrepreneurial skills and by a culture that is conducive to innovation. Business support centres, he noted, should focus on improving their technical capacity by helping domestic sector companies in the support industries innovate, study and develop new technologies. Budget collection to be on schedule State budget collection will be completed in accordance with the yearly estimate set by the National Assembly, Deputy Finance Minister Huynh Quang Hai said at the Government’s regular metering on November 29. According to the deputy minister, the rate of State budget collection in the first 11 months of this year fulfilled 89.8 percent of the estimate, up 6.3 percent against the same period last year. The Ministry of Finance will work with relevant ministries and sectors to address difficulties and promote production, thus increasing the rate of budget collection. Inspection work will be intensified to prevent fraud, loss of revenue and cut down budget spending, towards balancing the State budget, Hai added. Regarding public expenditure for State officials’ travel, Hai said the ministry is working to consult about modifying regulations related to public cars, aiming to apply fixed expenditures and reduce the number of public cars. Bac Kan moves to turn Ba Be into national tourist site The northern province of Bac Kan aims to develop Ba Be into a national tourist site and make tourism a key sector, thereby boosting the locality’s socio-economic development. Accordingly, the province will develop comprehensive infrastructure, high-quality and diversified tourism products, brand names and high competitiveness. Efforts will be made to preserve and promote local historical values, cultural identity, thus improving the spiritual and material living conditions for residents while protecting natural resources and the environment. By 2030, the locality aims to draw 50,000 international tourists and 1.5 million domestic visitors, earn 4.2 trillion VND (184.8 million USD), and have 6,000 hotel rooms. The sector targets creating jobs for 27,000 labourers. According to Director of the provincial Department of Culture, Sports and Tourism Ha Van Truong, the sector will give priority to developing landscape and tourism products in Ba Be and nearby areas, such as caves, waterfalls, islands, traditional festivals and performances. Investment will also be poured into resorts, entertainment areas and extreme tours in the Ba Be National Park. From 2016 to 2030, nearly 9.4 trillion VND (413 million USD) will be earmarked for tourism development. The province will mobilise different resources for the sector, Truong said. Human resource training and publicity campaigns will be strengthened to enhance community awareness of the role of tourism in development. Promotion events will be conducted to foster links in tourism development. StanChart forecasts Vietnam dong to fall further against U.S. dollar Standard Chartered in a recent report forecast a further depreciation of the Vietnam dong on the broader U.S. dollar’s strength amid sharp rises of the greenback against other currencies, including the Chinese yuan. The bank revised up its exchange rate forecast to VND22,900 to the dollar at the end of this year from VND22,400 previously. The exchange rate is expected to stand at VND23,000 in the first quarter of 2017 and increase steadily to VND23,300 by the end of 2017. According to the report, among the broad-based move higher in dollar versus Asian currencies, the pace of the dong’s depreciation against the dollar has picked up recently. Having held within a relatively narrow range of over 100 basis points in January-August this year, the daily dollar-dong exchange rate fixings by the State Bank of Vietnam (SBV) then began to creep higher. The dollar-dong spot, on the other hand, held steady below VND22,500 per dollar for most of the year, until the past fortnight when it surged above that level and is now trading close to the 3% limit of the trading band. While Vietnam’s economy has been strong, the dollar-dong move echoes similar falls in other Asian currencies. This shows the dong is not immune to broader dollar strength following Trump’s election victory and the depreciation of China’s yuan. This is reminiscent of previous instances where a significant pick-up in yuan volatility has affected the dong. The dollar soared to the ceiling set by the SBV last Thursday and then dropped gradually to VND22,660-22,670 for buying and VND22,750-22,780 for selling. Vietcombank’s dollar buying and selling prices stood at VND22,660 and VND22,760 on November 28, down VND20 from the close last Friday. Meanwhile, the reference exchange rate between the two currencies was VND22,132 per dollar, a 1.1% pickup from VND21,890 early this year. With the trading band of 3% on either side, the dollar could be traded at between VND21,468 and VND22,796 at commercial banks. The dollar has weakened on global markets. According to Reuters news agency, the U.S. dollar index, which tracks the dollar against a basket of six major rivals, dipped to 100.66 on November 27, having soared to a 13-and-a-half year high of 102.05 on November 24. World trade pact to benefit VN  Implementation of the WTO Trade Facilitation Agreement (TFA) will help reduce about 20 per cent of business expenses as well as promote investment and create more jobs for Vietnamese. This was the assessment of Vu Ngoc Anh, Deputy General Director of the Viet Nam Customs, at a workshop yesterday held by the General Department of Viet Nam Customs (GDVC) with support from the United States Agency for International Development (USAID), and in co-operation with the World Bank. “Viet Nam Customs has made efforts to complete commitments, including on animal and plant quarantines, food safety and hygiene control, logistics services, and procedures for the clearance of goods,” Anh told the meeting. The TFA was passed at the 9th WTO Ministerial Conference in Indonesia on December 6 2013 after ten-year negotiations. In November 2015, Viet Nam became the 60th country to ratify the TFA, which will go into force when 109 out of 164 WTO member states ratify it. The commitments are divided into categories A, B, and C. “Viet Nam has already submitted to the WTO its Category A commitments, identifying those that can be implemented immediately upon the TFA coming into force,” Anh told the workshop. Once in effect, the TFA is expected to enhance national and business competitiveness and boost trade and investment by committing Viet Nam to reforms in support of trade facilitation. The workshop, which brought together more than 50 Government officials, completed reviewing the list of Category A commitments, and revalidated the B and C commitments to be implemented after the Agreement comes into effect. The action plan detailed activities, objectives and outputs for each commitment, along with the timeframe, needed technical assistance, responsibilities of each agency, and coordination mechanisms. The workshop was one of a number of activities on which the USAID Governance for Inclusive Growth (GIG) Program is collaborating with the General Department of Viet Nam Customs and other agencies to successfully implement the TFA. Oversight key to SOE reform Strengthening financial supervision of State-owned enterprises (SOEs) is key to improving their performance and enhancing the efficiency of State investments, experts said yesterday. They told an international conference that this was particularly true in the context of the Government stepping up the SOE restructuring process. The conference, organised in Ha Noi by the finance ministries of Viet Nam and China, discussed the problems and difficulties faced by financial supervisory agencies and shared international experiences on improving supervision mechanisms. Vietnamese Deputy Minister of Finance, Nguyen Huu Chi, said that the financial supervision in SOEs in Viet Nam is a complicated, difficult process because of the large number of SOEs with investments spread over various industries and different bodies representing State ownership in the enterprises. As of early 2016, the Government has capital in more than 1,000 enterprises with total assets of VND3.1 quadrillion (US$136.6 billion). Of these, the State holds 100 per cent of capital in 781 enterprises. Chi said the complications as well as inefficient operations were among the main factors behind the wastage and loss of State-owned assets and investments. In 2014, pretax return on equity of State economic corporations and groups was 16 per cent, and that of enterprises under the ministry and provincial-level People’s Committees was 10 per cent. Supervision of State capital in SOEs has improved in recent years with the Government issuing and updating a number of policies to improve the supervisory mechanisms in a bid to limit risks of State capital losses, the conference heard. For State corporations and groups, the rights and responsibilities of the representatives of State ownership have been more clearly laid out. Management and supervision are carried out in tandem with performance evaluation of firms through various actions including the audit of financial statements, evaluation and classification of enterprises, regular inspections and monitoring of corporate finance. The Ministry of Finance, in co-ordination with other ministries and provincial authorities, has conducted annual reviews and assessments of financial status and performance of SOEs and reported to the Government. The Ministry will also use its assessments to give risk alerts and recommendations. Besides, the ministry has pointed out inadequacies and shortcomings in the current supervisory regime, including loose enforcement of regulations, overlap and dispersion in State management levels and lack of transparency in disclosures by firms, Chi said. Wen Zongyu, deputy director of the Research Institute for Fiscal Science of China’s Ministry of Finance, said SOEs had been playing a key role in the country’s economic reforms and they were expanding. He said Chinese SOEs were subject to public asset management, and had a tight relationship in the reform process, and the improvement of management mechanisms for State assets should be monitored in parallel with the SOE restructuring process. The management system needs to focus on effective financial supervision, as well as timely issuance and enforcement of policies to promote innovation within the enterprises, according to Wen. Record number of new firms set up The number of newly-established firms in the past 11 months hit a five-year record high of 101,683 thanks to the Government’s incentive policies, the General Statistics Office (GSO) reported. The January-November period also saw another 24,560 firms, which had to close doors previously, resume operation, up 31.7 per cent year-on-year. It raised the country’s total firms that were either newly set up or resumed operation in the past 11 months to 126,200. On average, up to 382 new firms were set up per day during the period, GSO said. It exceeded the total of 94,754 new firms set up last year, GSO noted, adding that compared with 2012, the number even had doubled. “The sharp surge shows that new legal regulations and the Government’s solutions towards supporting and encouraging firms for development are taking effect,” GSO explained, adding that the number of newly-established firms rose in almost all sectors and industries. Total registered capital of the new firms also surged 48.1 per cent against the same period last year to VND797.7 trillion (US$35.29 billion). Average registered capital of a new firm was VND7.8 billion, up 26.5 per cent year-on-year. Several industries saw a robust surge in both the number of new firms and the registered capital, of which real estate reported a rise of 95.6 per cent and 221.2 per cent, information-communications up 13.8 per cent and 144.3 per cent, and finance-banking-insurance up 28.4 per cent and 91.8 per cent. The forestry-fishery sector reported a decline of 13.8 per cent in the number of newly-established firms in the past 11 months, however, registered capital of the firms increased 27.9 per cent. Art-recreation sector also saw a decline of 26.6 per cent and 13.8 per cent in terms of the number and the capital, respectively. In the past 11 months, however, the country also witnessed 10,468 firms dissolving, while another 54,046 firms had to cease operations temporarily. Top Thai expo organisers to come to Ha Noi Ten leading Thai exhibition organisers will come to Hà Nội for a business-to-business forum to meet Vietnamese enterprises, trade promotion organisations and associations this Friday. The forum, organised by the Thailand Convention and Exhibition Bureau (TCEB), aims to boost trade activities between the two countries, as well as between other countries in the ASEAN region. The forum will discuss business opportunities within the ASEAN region through exhibitions in Thailand; commercial linkages among Thailand, Viet Nam and other countries in the region and from the establishment of the ASEAN Economic Community and the potential and cooperation opportunities between the two countries as well as ASEAN countries. This forum is a new form in the Connect Business campaign of TCEB. The bureau expects the campaign will attract Vietnamese businesses to Thailand to attend international exhibitions by strengthening relationships with organisations, associations, chambers of commerce, unions and non-profit corporations. Thailand expects to welcome 208,000 international trade visitors, creating a total value of US$500 million dollars this year and will continue to support businesses which want to expand their activities through exhibitions in Thailand. Lost oil and fuel duty revenue amounts to VND10 trillion by Oct The Government’s oil and fuel duty policy had led to revenue losses of about VND10 trillion in the year to October, says the General Department of Customs. The customs believes that apart from lost revenue from the world oil price plunge, sharp tariff cuts for fuel imports from a number of countries made up a significant proportion of the VND10 trillion. This is evident in the free trade agreements (FTA) such as Vietnam-South Korea and Vietnam-ASEAN. Importers have been shifting to buying fuels from those markets enjoying low Vietnam duties. Diesel oil 0.05S is mainly supplied by other Southeast Asia countries like Singapore, Malaysia and Thailand given a zero tariff under the Vietnam-ASEAN FTA. Meanwhile, diesel oil 0.05S imports from the Middle East are subject to a 7% duty and 5% from South Korea. Gasoline is mainly imported from South Korea thanks to a Vietnam tax of 10%, ten percentage points lower than in other markets. This is why Vietnam’s fuel imports from the markets enjoying the low tariffs account for over 80% of the total import of 9.53 million tons. Consumers have not benefited from 0% or 10% tariffs because the base fuel prices are currently calculated based on the average import price, tax and other charges, and used as a basis by traders to determine retail prices. Rules allow traders to set a price lower than the base level but 29 major fuel trading firms quote the same price using the benchmark set by Petrolimex which holds a market share of nearly 50%. Consumers actually have to buy fuels at high prices despite tax cuts. Stricter rule copes with bank card fraud Issuing banks must compensate for cardholders in five working days if they are found to be responsible for cash losses from cardholder accounts, according to a new central bank circular that went into force on November 28. The State Bank of Vietnam (SBV) last month issued Circular 30/2016/TT-NHNN in the wake of multiple reports on the disappearance of money from bank accounts, and on card fraud. The circular sets time limits for providers of payment services and intermediaries to investigate, handle and compensate for victims. Banks have so far dictated the time for dealing with customer complaints as the central bank’s Circular 19/2016/TT-NHNN allows the issuing bank and the cardholder to solve complaints based on their contract terms. With Circular 30 in effect, cardholders can request issuing banks to investigate any transactions and can lodge complaints within 60 days or more from the date of the transactions being done. In addition, the maximum time for banks to deal with such cases is no more than 45 working days from the date of receipt of the first request from the holder of the card having a BIN (bank identification number) granted by the SBV. For those with a BIN issued by international organizations, specific negotiations between card issuers and customers in their contracts should be referred to. A BIN is the initial four to six numbers on a card. On the event cardholders are not responsible for their money losses and/or such cases are not identified as force majeure in the contracts, banks must compensate for their customers under the agreement and the current law, within a maximum of five working days from the notification of investigation and complaint settlement results. If one of the parties involved are to blame (such as card switching or card accepting units), the party at fault must pay compensation to card issuers according to contract terms and the law. In case the time for investigation and complaint resolution specified in the contract has run out without a cause figured out, card issuers within the next 15 working days must discuss with cardholders over a solution or temporarily make up for their losses before a final conclusion by competent authorities determines which party is responsible. Circular 30 also provides other procedures, such as receipt of requests for investigation and complaints via a switchboard having a recording function and operating 24 hours, seven days a week, through transaction and business locations and in application of a form for investigation requests and complaints. Thaco exports bus parts to Russia Truong Hai Auto Corporation (Thaco) has exported three sets of bus parts to Russia to gauge the market there and if things go well, the local firm will ship 300 sets by the year-end, said Tran Ba Duong, chairman of Thaco. Speaking at a recent seminar on supporting industries in HCMC, Duong said the company is boosting the manufacture of auto parts to increase the local content of its vehicles to 40% and at the same time export some to foreign markets. Thaco now has four auto production and assembly plants and 16 auto parts factories. In April 2016, Thaco broke ground for a project to expand its automotive engineering complex Chu Lai-Truong Hai in Quang Nam Province to 268 hectares. The project includes a new passenger car factory with an annual capacity of up to 100,000 units. Thaco said the other factories would be able to turn out over 100,000 trucks, 12,000 minivans of 12-16 seats, and 8,000 bigger buses. As part of its business strategy, Thaco will expand Chu Lai-Truong Hai Port and establish shipping routes to ports in Japan, South Korea and China to cut shipping time and cost. According to experts, the auto industry holds huge potential but faces mounting competition as tariffs on completely-built-up autos imported from ASEAN nations will be cut to 0% in 2018. The production cost of autos in Vietnam is nearly 20% higher than in Thailand and Indonesia. Bắc Giang businesses owe VND100b in social insurance Social and health insurance for labourers worth VNĐ100 billion (US$ 4.4 million) hasn’t been paid by 600 businesses operating in northern Bắc Giang Province – accounting for 30 per cent of all businesses participating in the social and health insurance scheme. Some 190,000 labourers – 70 per cent of which are employed by businesses – are covered under obligatory social insurance. Some businesses have incurred a considerable amount of overdue social insurance debt, which proves increasingly difficult to recover, greatly impacting labourers’ interests. The provincial People’s Committee has directed all relevant agencies, departments and businesses to review and better comply with the implementation of the Law on Social Insurance, in addition to admonishing businesses with overdue debt and ensuring they make a binding commitment not to violate terms again. To deal with overdue debt, the provincial social insurance organisation shall inspect, classify and implement enforcement measures via bank accounts or request unions to initiate lawsuits if businesses deliberately evade insurance payment. With these measures, the province’s authorities expect to resolve outstanding insurance debts by 2017. State Bank set limits on credit card compensation Credit card service providers will have to compensate card owners for any probable loss not caused by the owners, starting November 28, 2016. This is according to Circular No. 30 from the State Bank of Vietnam (SBV). Banks and other financial entities will have a maximum of five days from the announcement of the results of inspection based on the clients' claims to comply with the appropriate contract and legal procedure as stated in the recently issued circular, which includes several additions to regulations on payment and intermediate payment service in Viet Nam. In case the deadline for inspection of claim as stated in the card contract has already passed without a determined cause of loss or the party at fault, within the next 15 working days, the credit card issuer must negotiate with the card owner to find a solution or offer temporary compensation until a final decision is reached by the appropriate authorities on the fault and responsibility of each party. With regard to cheque service and usage, SBV stated there must be a concrete regulation on the time limit for clients to file a claim, which would be no less than 60 days since the cheque is presented for encashment. Meanwhile, the time limit for the cheque service provider to handle the said claim must be no more than 30 working days from receiving the client’s initial claim. For cases of legal breach, investigation must be undertaken by an authorised government agency, whereas cases where no legal breach is involved can be handled by the card issuer and the card owner alone. Circular No. 30 also deemed any probable loss due to concerned parties, such as intermediate payment organisations, international card organisations and card acceptance units, will have to be compensated by the said parties to the credit card issuers in accordance with a mutual agreement. Finance ministry steps up customs, tax reforms The deputy minister of finance urged the general departments of customs and taxation to further administrative reform efforts to facilitate businesses, which still have several questions about tax and customs procedures. “The Ministry of Finance is committed to hasten reforms of tax and customs policies aimed at creating the best business environment,” Vu Thi Mai said at the dialogue held by the ministry and the Viet Nam Chamber of Commerce and Industry (VCCI) yesterday in Ha Noi. The dialogue drew the participation of more than 400 companies and industry associations. Mai said the ministries welcomed all comments from businesses which would contribute significantly to improve policies. During the past five years, the finance ministry has broadened dialogues with businesses, aimed at providing them with updates to address their difficulties. According to VCCI’s Deputy Chairman Hoang Quang Phong, slow tax settlement and slow customs clearance were among the problems that businesses faced. Phong said dialogue and training of the updates to policies must be promoted in addition to transparency in tax and customs procedures. Cao Anh Tuan, deputy director of the General Department of Taxation, said tax policies had been amended to ensure they were appropriate with the global integration trend and the country’s economic development, and would contribute to removing difficulties for taxpayers, coupled with efforts for simplifying tax procedures. Accordingly, tax procedures had already been reduced from 385 to 300. E-tax declaration and payment were applied nationwide, which helped cut tax payment time from 537 hours in 2013 to current 117 hours. In addition, online tax refund was under the pilot phase and would soon be applied widely. Vu Ngoc Anh, deputy director of the General Department of Customs, said customs reforms were made towards facilitating import and export, implementing a national single window and improving transparency. At the dialogue, tax and customs official answered questions of businesses, related to special consumption tax, tax policies on automobiles and regulations on temporary import. According to Mai, the Ministry of Finance will work closely with relevant ministries and organisations to implement measures to support businesses. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR |
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Article 3
Saigonese, Hanoians prefer buying goods online via Facebook Fashion products are the most easily sold online items in Vietnam, followed by high-tech products and mobile phones.  Reports released by different market survey firms all show that Vietnamese, especially in Hanoi and HCM City, tend to buy goods via social networks, especially Facebook. A survey in July 2016 conducted by Asia Plus in HCM City and Hanoi showed that 67 percent of people buy goods online, with 47 percent of them buying from Facebook. The buyers bought goods online at least once, while 23 percent said they did it regularly, at least once a week. There are many reasons to shop via social networks: ease of placing orders; reasonable prices; opportunity to haggle about prices; and regularly updated information.
The familiarity is also an important reason as 21 percent of polled people said this was why they bought goods via social media. The 2015 E-commerce Report also pointed out that shopping via forums or social networks increased from 53 percent in 2014 to 68 percent in 2015. Shop owners believe that it is more effective to sell goods on social networks than on e-commerce trading floors. Tran Trong Tuyen, secretary general of VECOM (Vietnam E-commerce Association), said that e-commerce trading floors and social media were two different distribution channels which don’t compete with each other. The key to business success lies in reasonable investment allocation to sales channels. A survey by Bizweb of 2,000 online shop owners released in early 2016 also showed that 51 percent thought Facebook was an effective sales channel, while only 29 percent thought so about e-commerce trading floors. “This shows that e-commerce trading floor seems to be inferior to social networks if considering business efficiency,” said Tuyen, who is also CEO of Bizweb. He said that social networks helped businesses more easily and quickly access clients and assisted buyers and sellers in making direct interactions through real-time comments, messages and consultancy – all of which e-commerce trading floors cannot do. Tran Tuan Anh, a senior executive of Shopee Vietnam, commented that e-commerce floors should try to develop direct interactions between sellers and buyers to accurately simulate Vietnamese shoppers’ behavior. A Shopee’s report shows that when integrating interaction into e-commerce trading floors, 71 percent of users talk to goods owners before buying goods. Chi Mai, VNN |
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Article 2
Vietnam to switch to bio-fuel nation-wide The plan to replace RON92 petrol with E5 bio-fuel is underway and is estimated to take effect from June next year.  The public are being encouraged to buy bio-fuel The Ministry of Industry and Trade is working to implement the plan on time and deal with possible problems. E5 is a mix of A92 petrol (95%) and bio-fuel ethanol (5%). The E5 quality by wholesale and retailers also meet required standards of the Directorate for Standards, Metrology and Quality under the Ministry of Science and Technology. There has been no complaint from consumers about the quality of E5 fuel. Currently, most of the ethanol is provided by Tung Lam JSC with capacity of 150,000 tonnes per year to mix over three million E5 fuel. The Ministry of Industry and Trade requested to work with the Ministry of Finance to calculate the prices for the E5 and E10 fuel, develop a mechanism to manage the market and how to use the price stabilisation fund. Ministries, departments and local authorities are asked to popularise the use of bio-fuel to the public. PetroVietnam, Petrolimex and retailers are asked to ensure the supply and open more plants in Vietnam. In August, Deputy Minister of Industry and Trade Do Thang Hai said E5 had been sold in Quang Ngai, Quang Nam, Da Nang, Hanoi, HCM City, Hai Phong, Can Tho and Ba Ria-Vung Tau. Hai said the bio-fuel prices were not attractive enough because of the high price of ethanol and declining price of petrol. "Businesses are not keen on bio-fuel because of lower revenues and customers habitually buy RON92," he said. By Phuong Dung, dtinews.vn |
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