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Enhanced shoe and leather testing ‘afoot’ in Vietnam


A trade agreement between Vietnam and the EU is likely to be ratified by member states within the next 12 months with implementation to begin in 2018, fuelling further expansion of bilateral trade between the two economies.

The implications are that large transnational exporters of primary goods will most likely be the main beneficiaries of the trade deal, while the domestic sector of some segments of the Vietnam economy may suffer due to increased competition.

One key area of contention that specifically – shoe and leather makers – will face concerns their compliance with EU consumer protection laws, said Rachel Garwood, at a recent forum in Hanoi.

Ms Garwood, who is the director of the Institute for Creative Leather Technologies, a research and education centre based at the University of Northampton said the key issue is commercial.


enhanced shoe and leather testing ‘afoot’ in vietnam hinh 0

Vietnam shoe and leather exporters want to be able to expand their sales to consumers in the EU and there will be no way for them to accomplish that goal without complying with a considerable amount of EU law.

This is a fact of life that Vietnamese companies must come to terms with, she cautioned, adding that is in their best interests to keep in line with EU consumer law to the fullest extent possible.

She noted that customer and consumer demands in the EU are driving up standards in the footwear and leather supply chain, presenting the industry in Vietnam with a range of challenges if they are to become competitive, profitable and sustainable.

Customers in the EU are increasingly demanding products that are not only safe and of good quality but also manufactured in an environmentally and socially responsible manner.

The EU, she emphasized, shifts the burden to the shoe and leather exporters to demonstrate the quality and safety of products through professional testing for a vast array of requirements— materials test, flammability tests, electrical safety tests and electromagnetic compliance tests to name just a few.

Phan Thi Thanh Xuan, secretary general of the Vietnam Leather Footwear and Bag Association in turn told the conference attendees that government regulators currently do not have a comprehensive set of consumer safety laws and inspection requirements in place.

The fact that the shoe and leather industries are highly dependent on foreign raw materials just makes it more difficult for cobblers and leather goods makers in the industry to cope with the quality and safety concerns of the EU regulators.

The EU regulators will not accept lab results from Vietnamese testing centres, she noted, adding that to the extent current Vietnamese law requires testing, those tests are just a waste of time and money when it comes to exports to the EU.

Vietnam labs are also ill equipped to properly perform testing, she acknowledged, saying they can only test for a few illicit chemicals in leather, while there are 163 chemicals for which the EU requires testing.

Vietnam shoe and leather exporters are now required to send samples of product to overseas labs. Currently, about 1% of every dollar of revenue goes towards inspections, but in the future, that cost certainly will rise.

Nguyen Bich Thuy from the Thuong Dinh Footwear Ltd Co, said his company usually sends its samples overseas for testing before producing bulk orders. However, more testing will be required when the trade agreement with the EU comes into force.

A representative of Ladoda Production, Service and Trading Leather Products Company, said his company currently spends on average US$10,000 annually on lab testing, but fully expects that figure to grow exponentially when the EU trade agreement is ratified.

It’s the vision of his company, said the rep, to become a driving force in the leather and shoe business in the EU and they fully recognize the need to boost expenditures on laboratory testing to up their competitiveness in the market.

VOV


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December CPI up 0.23%


The CPI increased 0.23 per cent in December compared to November and 4.74 per cent year-on-year, according to the General Statistics Office (GSO).


December CPI up 0.23% 

Six goods in CPI basket rise in December against November.


Six of the eleven goods in the CPI basket increased. Medicine and healthcare services saw the highest increase, of 5.3 per cent, as four cities and provinces raised their prices during the month under Circular No. 37 from the Ministry of Health and the Ministry of Finance.

Some goods in the basket saw slender growth, such as garments, hats and footwear, by 0.25 per cent, due to increasing demand as winter approaches, tobacco and beverages 0.21 per cent, housing and building materials 0.19 per cent, due to gas prices being adjusted in November and increasing demand for house repairs, and household appliances and equipment 0.08 per cent.

Most remaining goods and services saw growth decline, such as transport, by 0.89 per cent, restaurants and catering services 0.03 per cent, in which cereals increased 0.22 per cent and meat fell 0.12 per cent, posts and telecommunications 0.03 per cent, and culture, entertainment, and tourism 0.02 per cent.

Education did not change.

The GSO said that core inflation (CPI excluding cereals, meat, energy and State-managed goods such as education and healthcare services) in December increased 0.11 per cent compared to November and 1.87 per cent year-on-year. Core inflation for 2016 increased 1.83 per cent compared to 2015.

The price of cereals was up because this year saw many holidays so demand for shopping and entertainment rose. Natural disasters and poor weather also hit the northern region while there was serious flooding in the central region, drought in the central highlands, and saline intrusion in the Mekong Delta.

Other factors curbed the CPI. For example, petroleum and freight prices fell even though the demand for goods in the Tet holidays increased. Global fuel prices fell, leading to cuts in domestic fuel prices, and transport also declined.

VET

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Attractive shares in stock market available in 2017


Attractive shares exist in three groups: state-owned enterprises’ (SOEs), private companies and existing shares on the bourses.


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Big SOE IPOs expected

The news that the Airports Corporation of Vietnam (ACV), Vissan (food supplier), Vietnam Airlines, Sabeco and Habeco (brewers) have decided to list shares on the bourse has excited investors.

The shares of the enterprises all deserve investment. Sabeco holds the largest market share in the beer market, which has been growing quickly for many years.

Despite stiff competition, Sabeco still had an impressive business performance in the first nine months of the year with pre tax profit of VND4.5 trillion.

Vissan is the leading company in the food supply sector thanks with its 40 years’ experience and a large distribution network. Its prospectus says Vissan now holds 65 percent of sausage market share, 70 percent of Chinese sausage and 20 percent of canned food market share.

Attractive shares exist in three groups: state-owned enterprises’ (SOEs), private companies and existing shares on the bourses.

The market is expected to see a lot of IPOs of major companies in 2017. These include PV Power, PV Oil and Binh Son Refinery.

PV Power is the second largest power generator in Vietnam. PV Oil ranks second in petroleum distribution. Meanwhile, BSR’s advantage is in an oil refinery.

Investors also have high expectations for the IPOs of Vigecam (agricultural materials), HUD and IDICO (real estate developers), Vicem (cement manufacturer) and MobiFone (telecom).

Of these, MobiFone, one of the three largest mobile network operators in Vietnam, is attractive with charter capital of VND15 trillion and targeted revenue of VND100 trillion by 2020.

Private companies

Novaland (real estate developer), Vietjet Air, Quang Ngai Sugar, FPT Telecom and Techcombank are the most wanted names in the group.

Novaland plans to list shares in December and has prepared the way by selling a 10 percent stake to 18 investors.

Prior to that, it issued preferential shares to VinaCapital, Dragon Capital and a domestic financial company.

Vietjet Air joined the market in late 2011, but it has replaced Jetstar Pacific to become the largest low-cost carrier in Vietnam with 43 percent of the domestic passenger market share.  The company valuation is $1.2 billion.

High-quality goods

Analysts say investors can find great opportunities from the SCIC’s divestment plan. It is estimated that the total market value of the companies SCIC to be divested would be about VND100 trillion, or $4.5 billion.

According to VDSC, food & beverage, consumer goods, retail, logistics and transport are still lucrative business fields. GSO said total retail turnover has increased by 434 percent in the last 10 years.


Thanh Lich, VNN

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Hundreds of houses built without permits in Da Nang


Hundreds of houses in the central Vietnamese city of Da Nang were found to have been built without the proper permits, resulting in troubles and headaches for their owners.

 
Houses in the K38 residential area in the central city of Da Nang . Tuoi Tre

The residences found to be in violation of permit regulations are located in the K38 residential area in My An Ward, Ngu Hanh Sin District, a housing project developed by the 98 Project Management Committee under the Ministry of National Defense.

Two hundred and seventeen houses are under construction in the area, all of which were originally meant as homes for military soldiers and officers, however, many officers chose not to settle in the houses and have instead opted to resell the residences to civilians.

According to the observation of Tuoi Tre (Youth) newspaper reporters, most of the residences have completed exteriors and reached three stories tall.

V.H., a local resident who purchased one of the houses, stated that she first became aware that the houses lacked a building permit when she was unable to finalize the legal procedures for ownership to be transferred to her name.

According to Le Ngoc Nam, an official from the People’s Committee in My An Ward, residence transfer procedures for the houses cannot be completed due to the lack of building permits.

Though local authorities are aware of the situation, they have not penalized the project developer because the land plots are owned by the military, Nam stated, adding that the military’s ownership disallowed inspections from being carried out on the construction site.

Aside from the absence of building permits, the balconies of the houses were also built wider than allowed, compromising public space along the neighborhood’s sidewalks, said Tran Thi Kim Hien, deputy director of the Land Registration Office in Ngu Hanh Son District.

The constructions also violated the city’s urban planning regulations, Thai Ngoc Trung, deputy director of the municipal Department of Construction, added.

Regarding a solution to the issue, no decision has been announced by local authorities, Vu Quang Hung, director of the city’s construction department, said during an interview with Tuoi Tre on Tuesday.

A meeting has also been convened between the municipal People’s Committee and the developer of the project to discuss the problem, Hung continued.

Any adjustment to the houses will be decided over the next few days, the official stated, adding that competent authorities should also take the rights and benefits of the owners into consideration.

Tuoitrenews

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Japan investors launch logistics business in Vietnam


Two Japanese companies have launched – New Land Vietnam Japan Joint Stock Company – a four-temperature cold chain logistics joint venture, according to a December 14 news release by Sojitz Corporation.


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The undertaking by the two Tokyo-based stakeholders, Sojitz Corporation and Kokubu Group Corporation, was made in collaboration with major Vietnamese logistics company, New Land Co. Ltd.

New Land Vietnam will provide modern cold chain logistics services by using its own four-temperature (room temperature, fixed temperature, refrigerated, and frozen) logistics centres and trucks to consistently manage temperatures across all food product operations, from storage to store shipment.

The management of New Land envisions reaching US$9.7 million annual sales within 10 years, said the news release.

It will also serve to complement an existing joint venture – Huong Thuy Manufacture Service Trading Corporation – of the three stakeholders and act as a catalyst to further expand their food value chain in Vietnam.

Sojitz has substantial business experience across multiple fields in the Southeast Asian country, said the news release, having fist established its presence in 1986. The company is in the process of developing a food value chain capitalizing upon its vast manufacturing experience in Vietnam.

Kokubu’s management team possesses extensive know-how when it comes to the distribution and logistics across a wide spectrum of food products from perishables to processed foods.

In addition, Kokubu can draw upon its successful experience implementing cold chain logistics operations in East Asia and other Southeast Asian countries.

New Land Co. Ltd., the news release continued, has been a leader in the logistics industry in Vietnam with substantial experience in warehouse and logistics operations in addition to its strong relations with Sojitz and Kokubu.

In recent years, economic growth in Vietnam has resulted in increased purchasing power of the country’s consumers and substantial growth in the number of modern retail business establishments such as supermarkets and conveniences store throughout the country.

While the need for cold chain logistics services is rising, the release noted that Vietnam does not yet have a sufficient infrastructure systems in place to meet the demand, creating a perfect opportunity for New Land Vietnam to rapidly establish market entry and gain market share.

Through this business, Sojitz and Kokubu will contribute to the development of a modern logistics infrastructure while simultaneously working towards increased customer satisfaction in Vietnam.

New Land Vietnam conducts its operations from facilities located at the Binh An Garment and Textile Industrial Zone, Binh Thang Ward, Di An Town, Binh Duong Province, Vietnam.

The company has 11,000 square metres of office and floor space at its warehouse with a storage capacity for 13,000 pallets. It has an initial fleet size of 50 trucks.

The facilities are located within a one hour drive of Cat Lai Port (the largest container terminal in Vietnam) and Long Thanh International Airport, expected to begin operations in 2025.

VOV

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2.5 million city people lack clean water



 

People in Hà Nội’s suburban areas are forced to buy clean water at high prices due to a shortage of tap water. - VNA/VNS Photo Minh Sơn


HÀ NỘI - Some 2.5 million people living in suburban areas in Hà Nội do not yet have access to tap water, the city’s Centre for Clean Water and Rural Environmental Hygiene has revealed.

In a report on Hanoians accessing tap water in 2016, the centre said the rate of people in suburban areas accessing tap water supply increased 3.3 per cent compared with the previous year. However, the city’s target of supplying clean water to all people in the city by 2020 would not come close to being achieved unless serious measures were implemented.

Many people in the west of the city, such as Đông Anh and Sóc Sơn districts, had to use water from ponds or wells for daily chores, impacting their health and causing diseases related to the skin and eyes.

According to a recent announcement of the Ministry of Natural Resources and Environment, Lũng Vị Village in Chương Mỹ District and Thống Nhất Village in Ứng Hòa District were the two villages with the poorest water quality in the country.

In some areas locating along the Nhuệ River, including Cự Khê Ward in Thanh Oai District, Tiền Phong Ward in Thường Tín District, Chuyên Mỹ Ward in Phú Xuyên District and Đông Lỗ Ward in Ứng Hòa District, the water quality was substandard. Some water samples were taken from a depth of 40-50m but still had foul odour.

Suburban people were even facing a shortage of water in the dry seasons and were forced to use contaminated water or buy water at high prices, such as those living in Trung Hòa and Trường Yên communes in Chương Mỹ District and Chàng Sơn Commune in Thạch Thất District.

The city authority has built water supply stations for these areas, but some have failed to ensure water supply for residents.

According to the centre, the city has implemented measures to attract investment capital from enterprises and individuals. The city has asked the Hà Nội Clean Water One Member Co. Ltd to expand the model of water supply using German water treatment technology to develop the water supply network in suburban areas.

The city has also ordered the company to disseminate information about the protection of water sources and reduce wastage of water.

Viet Nam News

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Railway investment lags far behind road expenditures


The modest investment in railways in the last 100 years, as well as high management costs and ticket prices have pushed the railway sector into an impasse.

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In 2014, when the Noi Bai – Lao Cai highway was opened, the Hanoi – Lao Cai railway, which was once of the most crowded rail routes, lost 10-15 percent of passengers within one month.

The rail route still cannot attract passengers, even though Hanoi Railway Transport JSC lowered the ticket price to VND399,000.

Passengers now tend to turn their back to railway transport, mostly because they only have to spend three hours to travel between Hanoi and Lao Cai  by coach, while it takes 6-7.5 hours to travel by rail.

Doan Duy Hoach, deputy general director of the Vietnam Railway Corporation, said infrastructure has become too old as rail structure was set up 100 years ago, while the corporation doesn’t have money to upgrade the railways as the state investment is modest.

While the state has been allocating big capital to road development, it seems to have forgotten about the railway.

A report shows that in 2001-2010, the total investment capital for transport infrastructure projects was VND160.08 trillion, of which 88 percent was allocated to road projects, while only 3 percent went to railways.

 The modest investment in railways in the last 100 years, as well as high management costs and ticket prices have pushed the railway sector into an impasse.

In 2011-2015, when the investment capital for transport infrastructure increased sharply to VND330 trillion, 90 percent of capital went to roads (VND299 trillion) and only 3 percent was reserved for railways (VND9.2 trillion).

As a result, railways had 1.14 percent of passenger transport and 2 percent cargo transport. Meanwhile, the figures were 95 percent and 65 percent for roads.

The capital allocated by the state budget is just big enough to satisfy 60 percent of the demand for maintaining the existing railways.

The project on upgrading and modernizing the Thong Nhat Route from Hanoi to HCMC has been approved, but the disbursement has not been made.


Pham Sanh, a renowned transport expert, commented that because of the delays in developing railways, Vietnam may lose important opportunities to develop a transport network in a comprehensive way, thus leading to higher logistics costs and lower economic competitiveness.

While the state capital for railway development is modest, it is difficult to call for capital from private investors.

Hoach said it is easy to persuade investors to inject money into road projects because they can take back investment capital by collecting tolls. But they cannot do this with railway projects.


Thanh Lich, VNN

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Retailers: Keeping pace with accelerating change in 2017

 The coming year will be another challenging one for domestic sector retailers as they seek to maintain market share and compete with the growing foreign sector for sales revenue, said experts at a recent business forum in Hanoi.

retailers: keeping pace with accelerating change in 2017 hinh 0
Dr Luu Duc Hai of the Ministry of Planning and Investment said that based on what has happened in 2016, it could be argued that next year would be even more challenging.

Dr Hai said more aggressive marketing strategies are needed by local companies as they try to carve out a niche in the retail market, adding that he believes the major battlegrounds would shift to online shopping.

Online shopping, said Dr Hai, offers a more cost-effective channel to reach select targeted consumer groups.

The retail sector can also expect to see more intense price competition, in an industry that is already operating on thin gross profit margins.

It therefore becomes critically important for companies to not only channel the right market but effectively manage their resources, particularly in keeping inventory and product mix at optimum levels.

Excessive amounts of inventory have advantages and disadvantages for a business, which makes inventory control a delicate balancing act.

When a company holds a high level of inventory, it ties up business funds that could be used in other areas such as research and development or marketing. It also leads to higher warehousing costs and can lead to quality problems such as degradation and potential obsolescence.

However, not having enough of an item on hand can lead to lost sales from not having an item to fill a customer order and can also lead to customer dissatisfaction and customer loss as they go to a competitor to acquire the product.

Another consideration, said Dr Hai, is that small retailers can obtain a savings when purchasing many products in bulk quantities. Many suppliers give larger discounts to customers who order larger quantities.

Dr Doan Thi Thuy Duong of the Ministry of Planning and Investment in turn agreed that 2017 would be a particularly challenging year for domestic sellers in the country.

Dr Duong said consumer behaviour had changed in 2016, particularly with the advent of online shopping and the implementation of novel online-purchasing models throughout the country.

She noted that major challenges for local retailers would evolve around gaining a better understanding of consumer buying habits and realizing that they are changing at a dramatically fast pace.

The country’s retail markets are moving into the digital age and a whole new era of interactive online marketing is beginning to emerge. It just may be that the key to success of domestic sector companies for 2017 depends upon their ability to tap into this behaviour and cater to it better than their foreign sector counterparts.

Clinging to outdated sales and marketing strategies would most likely not be successful in 2017, she underscored.

Dr Hai noted that complex challenges for retailers lie ahead in the coming year as they struggle to develop differing strategies to target the diversity of target consumer groups.

Not only online shopping is having a significant impact on the retail market, added Dr Hai, but the demographics are changing as more young people, foreign business people and tourists impact the consumer mix.

The increased complexity of the consumer mix complicates marketing activities and it just may be that the most successful companies for 2017 are the ones that can best understand and adapt their company policies.

Lastly, Mr Hai commented that another emerging challenge facing domestic sector retailers is in coping with new payment methods as well as how they deliver products and services to the consumer.

VOV


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Industry Ministry plans to open Thach Khe ore mine with $0.31 billion


 The Ministry of Industry and Trade’s (MOIT) plan to spend VND7 trillion to resume exploitation at Thach Khe ore mine has faced opposition from scientists. 


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Truong Thanh Hoai, director of the MOIT’s Heavy Industry Department, said Thach Khe, with the reserves of 544 million and the value of $35 billion, has great potentials, but still has not been exploited.

Hoai said MOIT is still looking for solutions to exploit Thach Khe. It is estimated that VND7 trillion would be needed to resume the mining there.

Meanwhile, scientists don’t think Vietnam should continue the exploitation at Thach Khe.


Bui Van Muu, a former lecturer at the Hanoi University of Technology, affirmed that in current technical conditions, it would be unreasonable to pour VND7 trillion into Thach Khe.

According to Muu, Thach Khe, situated deep below sea water level, is difficult and costly to be exploited. Meanwhile, Vietnam’s state budget is short.

The Ministry of Industry and Trade’s (MOIT) plan to spend VND7 trillion to resume exploitation at Thach Khe ore mine has faced opposition from scientists.

“It would be better not to think of exploiting Thach Khe now. The exploitation requires high technology and hefty amount of capital, and we don’t have much money,” he said.

“Even if we have money, we need to think about the technology. Our technique is not good enough to undertake such works, and we will have to hire foreign specialists,” he added.

The expert also pointed out that MOIT should think about economic efficiency in exploiting Thach Khe’s ore.

With the high technology required, the steel products will have high production costs, and therefore, will be uncompetitive in the world market which has been witnessing heavy fluctuations.

Nguyen Thi Chieu, a university lecturer, said the Vietnam Steel Association has repeatedly given warnings about the uncertainties of the steel market. Therefore, it is necessary to consider the exploitation plan carefully.

Chieu went on to say that Vietnam, which suffered from the ‘Formosa catastrophe’, needs to become more cautious about iron and steel projects.

“Vietnam should not participate in such risky project,” she said.

“Ha Tinh is a poor province which often suffers floods. It is very difficult to exploit ore at Thach Khe,” she said.

Le Ai Thu, chair of the Geological Association of Vietnam, also said Vietnam should not invest in Thach Khe, at least for the next five to 10 years.

Thu warned that the exploitation would bring low economic efficiency because of technology conditions, while it would cause serious pollution.

“It would be better not to continue investing in Thach Khe,” he said, adding that it will be very costly to get ore from the mine, while steel manufacturers will still have to pay additional fees to carry the ore from Thach Khe to Ninh Thuan or elsewhere to make ingot steel.

Kim Chi, VietNamNet Bridge

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Eight honoured at first ever startup festival
 

 
With 53 per cent of voting from 200 delegates, DesignBold, a design application, overcame GotIt! (47 per cent) to win the most important award, Startup of the Year award. - Photo genk.vn


HÀ NỘI - Eight startups received awards in five categories at the 2016 Start-up Festival in Hà Nội yesterday. The categories were Startup of the Year; Women’s Startup, Bluebird IT Startup, Potential Startup and Most Favoured Startup.

The event, which is held for the first time by Việt Nam Television’s VTV6, the Việt Nam Climate Innovation Centre (VCIC), Topica Founder Institute and Bluebirds JSC, is the biggest event for the startup community this year.

The festival attracted about 1,000 startups.

With 53 per cent of voting from 200 delegates, DesignBold, a design application, overcame GotIt! (47 per cent) to win the most important award, Startup of the Year award.

“We promise to try our best to bring resources from overseas to support Vietnamese startups. Receiving the award is an honour for us but also a responsibility. We set the target to support Vietnamese startups to catch up with other startup ecosystems in the world,” said Đinh Viết Hùng, the CEO of DesignBold.

DesignBold is a tool that helps both professional and amateur users design by themselves. It is also the winner of Creative Business Cup Vietnam 2016 and became the Vietnamese representative for the final round at the Creative Business Cup 2016 in Copenhagen, Denmark in November this year.

The Women’s Startup Award was given to Vũ Nguyệt Ánh, founder of the dating app Rudicaf. “For me, this is an honour as well as a great motivation, but also a pressure to make more efforts in the future,” she said.

The Most Favoured prize was given to Lê Thống Nhất, a retired teacher, for his BigSchool Việt Nam product. Three startups, namely, 1offfice, Giaohangnhanh and WeFit, won the Potential Startup Award. The prize is a two-week visit to Israel, dubbed the startup nation.

“I believe that the spirit of the young generation in Việt Nam will boost the startup ecosystem. In my opinion, it is always better to pursue and try to fulfill your dream than not to try at all,” said Yaniv Tessel from Israel’s Economic and Trade Mission.

In the Bluebird IT Startup category, Mysterious Stone and Suge Dict overcame 200 games and applications to win. They will receive an award of VNĐ50 million and an opportunity to visit the Google offices in Silicon Valley.

In addition, the organisation board gave a prize for the startup event of the year to the event that the startup community proposed for the amendment of the Article 292 under the Penal Code.

Article 292 of the Penal Code adopted by the National Assembly last year stirred up controversy as it was stated that any services offered online or via telecommunication networks without prior permission would be deemed illegal. Fearing that start-up businesses could be harmed, a petition calling for the scrapping of Article 292 was sent to officials, ministers and agencies and collected nearly 6,000 signatures after only one week.

Viet Nam News

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Self-proclaimed drug addict extorts money at Ho Chi Minh City bus stops


A man claiming to be drug abuser has been blackmailing money from passengers at downtown bus stops in Ho Chi Minh City.


The extortionist in downtown Ho Chi Minh City is seen in this screenshot. Tuoi Tre

The man, in his 40s, has been traveling by bicycle to bus stops in the southern hub on the hunt for vulnerable preys he can ‘ask’ for cash, threatening those who fail to fork over money with a knife or syringe.

Tuoi Tre (Youth) newspaper reporters collected video footage of the illegal act, even sending one journalist undercover as a victim.

The correspondent arrived at a bus stop on Nguyen Thi Minh Khai Street in District 1 on Monday night before being approached by a small-framed man with dark skin.

“What time is it? Where is Bus No.6?” the man asked his prey before continuing with a threatening tone, “This is my territory. Watch your manners or I’ll stab you.  Understand?”

The suspect claimed to be HIV positive, adding that he had just finished an 11-year murder sentence.

“You’ll be infected if I stab you with this” he kept repeating, pointing to a hard object in his pocket.
 The stranger then asked the undercover journalist for VND20,000 (US$0.88) to purchase drugs.
“One injection costs me VND600,000 ($26.3).  I just need another VND20,000,” he said.

After being turned down, the man overwhelmed his victim with more threats, insisting on the spare cash.

“If you were anyone else, I would stab you and beat you right here on the street and take it. Now give me the money. It is only VND20,000!”

After receiving VND10,000 ($0.44), the thug began complaining of the millions of dong (VND1 million = $43.9) he spends on drugs each day before leaving on his bike.

The thug continued hunting for prey at another bus stop on Dien Bien Phu Street in District 3.  He came across K., a college student from the Mekong Delta province of Tien Giang.
 K. was forced to hand over VND50,000 ($2.2) before bowing his head as he begged the man to leave him alone.
“He said he had been watching me for a while. He even pulled out a syringe to intimidate me. I had to give him what he wanted,” K. recalled during an interview after the incident.

After scouting several streets in the city’s center, the man grabbed a bite at a noodle stall in Binh Thanh District and headed toward a nearby tenanted house.

H., an office worker in District 3, also reported that he had fallen victim to the extortion in late August, losing about VND2 million ($87.91) to the bandit.

“After stating his request, he showed his syringe while reiterating he had HIV,” H. said, adding that the thug originally asked for VND20,000 but later took everything from his wallet.

H. has reported the case to authorities.

Tuoi Tre also submitted the evidence to police officers in Nguyen Cu Trinh Ward, District 1, on Tuesday evening.

An official from the police station affirmed on Thursday that they were hunting for the suspect and will impose a stern punishment.

TUOI TRE NEWS

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BUSINESS IN BRIEF 30/12


Credit grows 18% in HCMC this year

Banks in HCMC have made loans totaling VND1,460 trillion (US$64.3 billion) this year, up 18% versus the end of last year.

The State Bank of Vietnam’s (SBV) HCMC branch told the Economic and Budget Committee of the HCMC People’s Council at a recent meeting that this loan growth rate was well above 9% in 2013, 12% in 2014 and 15% in 2015.

The macro economy has remained stable and production and business activities have steadily expanded, according to the SBV branch. The Government’s policy steps in favor of the corporate sector have left positive impact on lending.

The lender-borrower matching program of the city has allowed many businesses to gain easy access to preferential loans.

According to the SBV branch, capital mobilized by the city’s banking system will reach an estimated VND1,810 trillion by end-December, a 16% pickup from end-2015.

The branch said its has written to credit institutions in the city asking them to prepare plans to meet people’s cash demand in the run up to the traditional Lunar New Year holiday (Tet). They are told to ensure sufficient cash at banks and automated teller machines (ATM) and put small denomination banknotes into circulation.

Thien Hoa opens small store in Binh Duong

Thien Nam Hoa Commercial Service Co Ltd, the owner of the Thien Hoa home appliances store chain, has put into operation a small electronics shop in the southern province of Binh Duong.

Tran Tan Hoang Hau, marketing director of Thien Hoa, told the Daily that the company is working on a plan to expand small stores.

Such small stores target customers who need goods at reasonable prices. The new store in Ben Cat District, Binh Duong Province is the second such facility of the firm, raising the number of the retailer’s all outlets to eight.

Hau said at least 10 new stores of different sizes would be opened in neighboring provinces.

Currently, many electronics retailers eye smaller stores since the electronics retail brand Xanh of The Gioi Di Dong has been successful in its small-store model, and now it has over 220 shops in the nation’s 63 provinces and cities.

Nguyen Kim, a major retailer of mobile phones and home appliances, has opened 14 new stores, with some of them at Big C supermarkets which Thailand’s Central Group and Nguyen Kim jointly acquired from France’s Casino.

Business climate improvement effort yet to pay off

Through Resolution 19 the Government has shown its resolve to make life easier for businesses but a slew of hindrances to production and business activities have remained.

In a comment on a review report on three years’ implementation of the resolution, the Ministry of Planning and Investment said the gap between what the resolution targets and what has been achieved is woefully wide.

The resolution is intended to improve the business environment and the competitiveness of the nation to catch up with leading ASEAN economies.

The Government will meet with city and provincial leaders on December 28 in a teleconference to review the execution of the resolution.

If well implemented, the resolution would help shore up private sector investment. But it was not until this year that ministries and localities had begun showing some change in their thinking and actions.

The report by the Ministry of Planning and Investment says most ministries, agencies and local authorities are fully aware of the objectives, tasks and measures set out in the resolution.

The 2016 version of Resolution 19 identifies 13 groups of general tasks and solutions and 83 particular tasks for ministries, agencies and local authorities. So far, 35 solutions have been adopted and have brought results (42.2%); 19 have been carried out without a clear effect (22.9%); and 29 have not been implemented (34.9%).

A number of cities and provinces have drastically enforced the resolution and achieved encouraging results as shown in a number of indicators. Many of them have executed Resolution 19 on a regular basis, including HCMC, Quang Ninh, Hanoi, An Giang and Dong Thap.

At the conference “Hanoi 2016 – Cooperation for investment and development” held in the capital on June 4, the city’s leaders said: “Hanoi will be a pioneer to improve the business environment and competitiveness in the spirit of Resolution 19.”

However, Resolution 19 has not received an enthusiastic response from many ministries and localities.

In 2014, when the resolution first came out, most of the ministries, agencies and localities did not draw up action plans. Those who did devise a plan failed to meet criteria for business climate improvement based on international practices, says the report.

In response to the 2015 version of Resolution 19, only a handful of local governments mapped out action plans, and many just did it perfunctorily. The action plans of some localities set out goals but contained no specific tasks and solutions.

With Resolution 19 of 2016, many provinces have neither adhered to the resolution nor produced clear results, such as Thanh Hoa, Quang Binh, Lao Cai, Thai Binh, Quang Nam, Nam Dinh, Thai Nguyen and Quang Tri.

The latest version of the resolution was issued on April 28, but months later some provinces came up with action plans, like Khanh Hoa on September 14, Hau Giang on August 23, Kien Giang on August 8, Son La on August 12, and Ca Mau on August 17.

Therefore, the Ministry of Planning and Investment report says that most indicators of Vietnam’s business climate have yet to reach the average levels of ASEAN 4, or even ASEAN 6. A number of countries in the region have carried out a lot of reforms and outdone Vietnam, with Indonesia and Brunei having moved up 15 and 25 notches respectively.

In the 2016 Global Competitiveness Rankings of the World Economic Forum, Vietnam comes 60th among 138 nations and territories, down four places from last year (56/140). This ranking is only above Laos and Cambodia, and below most other ASEAN countries.

Tân Á Đại Thành Group begins factory’s construction


 

Tân Á Đại Thành Group this morning began construction of a factory producing water heaters and filters in the Kiện Khê 1 Industrial Complex in Hà Nam Province’s Thanh Liêm District.

Covering an area of 137,000sq.m., the Tân Á Hà Nam factory is the group’s 12th factory being built at the cost of VNĐ500 billion (US$22 million).

Using European standard technology, it is expected to produce 1.5 million water heaters, 300,000 solar water heaters and 800,000 R.O water filters per year when it begins operation in the fourth quarter of 2017.

Speaking at the ground-breaking ceremony, the provincial People’s Committee Chairman Nguyễn Xuân Đông said the factory’s construction would not only meet market demand, but also contribute to shifting the province’s economic structure, increasing budget collection and creating job for locals.

He asked the group to ensure the project’s quality, progress and compliance with current State regulations of working safety and environment.

Related authorities were required to co-operate with the group to address obstacles arising during the construction process and factory operation, Đông said.

FE CREDIT signs loan contract with Credit Suisse

VPBank Finance Company Limited (FE CREDIT) on Wednesday announced that it has completed a syndicated loan procedure with Switzerland’s Credit Suisse Group.

The loan contract will supply FE CREDIT with a much-needed flow of working capital and broaden its ability to meet its clients’ financial demands.

Credit Suisse AG Singapore acted as the intermediary for the signing of the loan contract, as well as the credit agent and legal representative for the loan.

The capital flow from the syndicated loan will give FE CREDIT liquidity based on its commercial loan results, and serve to fulfil its plans to lead the Vietnamese commercial financial market, said Kalidas Ghose, FE CREDIT’s deputy CEO and director of retail banking and consumer finance.

The loan will allow participating entrepreneurs to improve their financial capability and boost business operations, he said, adding that it reinforces the trust in FE CREDIT by global banks, courtesy of its returns and business models, and vision for sustainable development of international standards. 

“We are honoured to be a partner with FE CREDIT in their journey to success and development, as well as a supporter for Vietnamese entrepreneurs and provider of creative financial solutions for Vietnamese consumers,” said Rehan Anwer, managing director of investment banking and capital market at Credit Suisse Group AG Singapore.

 “Việt Nam has been a major market for Credit Suisse in Asia, and we are committed to bringing clients the best service through the investment banking and capital mobilisation system,” Anwer said.

Ghose said Credit Suisse received positive responses from international partner banks for joint capital mobilisation after a period of careful research and consideration.

Founded as the consumer finance division of Vietnam Prosperity Joint Stock Commercial Bank (VPBank), FE CREDIT became an independent company within six years of being established. It was awarded for being Việt Nam’s best commercial finance company by the Global Banking and Finance Review in 2016.

Credit Suisse, one of the largest global financial services firm in Việt Nam, has around US$7 billion invested in contract values with domestic businesses and organisations. It ihas been recognised as the best foreign investment bank in Việt Nam by many international financial magazines.

Republic Plaza launched in HCM City     

Thuy Duong Duc Binh Trading JSC on Tuesday launched the Republic Plaza, which is expected to provide a luxurious live-work-play environment and the best investment opportunity in HCM City.

Located on Cong Hoa Street, Tan Binh District, Republic Plaza is one of the most luxurious and largest mixed-use development projects under construction near the Tan Son Nhat International Airport.

The project features two towers being developed under the Officetel & Suites concept. Tower A will comprise 350 rooms built according to the five-star standard and managed by InterContinental Hotels Group (IHG) - the world’s leading hotel management company - while Tower B will include 266 Officetel & Suite units with floor area from 47sq.m to 104sq.m.

Michael Hoe-Knudsen, regional general manager of IHG, said Republic Plaza will be the first Holiday Inn & Suites in Viet Nam catering both to transient guests passing through the airport, corporate customers visiting offices and factory clusters nearby when it opens in 2018.

The launch ceremony also saw an agreement inked between Vietjet and Thuy Duong Duc Binh Trading JSC, which will allow Viet Nam’s largest private carrier to move its headquarters to Republic Plaza in 2018.

“Republic Plaza has prime location near Tan Son Nhat airport, a luxurious design and is integrated with various facilities, especially the five-star hotel units, managed in line with international standards, and the unique Officetel & Suites,” Nguyen Thi Thuy Binh, deputy vice president of Vietjet, said.

“The complex meets all the criteria of a comfortable, dynamic working space as well as quality accommodation and recreation for staff that Vietjet is looking for,” she said.

Also at the launch, HDBank and Thuy Duong Duc Binh Trading JSC signed a co-operation agreement to provide loans for buyers at preferential interest rates.

Viet Capital Bank launches MasterCard debit card     

Viet Capital Bank has launched MasterCard debit cards.

Card holders, besides paying for goods and services, can also withdraw cash free of charge at ATMs with the MasterCard logo.

Viet Capital Bank issues the card to customers aged 15 years and above.

To mark the launch, Viet Capital is offering discounts of up to 50 per cent or gifts when shopping or eating at Lotte mart, Nguyen Kim Electronics and many other places. 

AEC site launched to guide firms     

Vietnamese businesses can now access all important legal documents of the ASEAN Economic Community (AEC) on aecvcci.vn, which was launched on December 28.

The portal, launched by the Vietnam Chamber of Commerce and Industry (VCCI), was introduced at a seminar on Viet Nam and AEC, held by the VCCI and British Embassy Hanoi in the capital.

The portal, which has both Vietnamese and English versions, will give businesses detailed instructions and guidelines on how to read and understand the AEC’s legal agreements on goods, services and investment. It will also provide businesses with the latest information on Viet Nam.

Speaking at the seminar, Nguyen Thi Thu Trang, director of VCCI’s Centre for WTO and Economic Integration, said the portal had been launched as only a moderate number of Vietnamese businesses understand the AEC thoroughly. This came to light after the VCCI conducted a survey in April to gauge what enterprises know about trade agreements such as the Vietnam-Korea Free Trade Agreement (VKFTA), Trans-Pacific Partnership (TPP), EU-Vietnam Free Trade Agreement (EVFTA) and the AEC.

The survey revealed that while 94 per cent of the 250 participating businesses knew about the AEC, only 16 per cent understood it clearly. Meanwhile, 88 per cent, 83 per cent and 77 per cent of the enterprises surveyed knew about the VKFTA, TPP and EVFTA, respectively, but again the percentage of those who understood the details of these agreements was low.

“We found that it is not because our businesses are passive or lazy, but that they don’t know how to access such important information to develop business overseas,” Trang said, adding that as a result, Vietnamese enterprises had failed to make use of the opportunities presented by the AEC.

“The portal will not only help Vietnamese businesses but also those from the ASEAN and other foreign countries who are looking for opportunities to develop business in Viet Nam,” Trang said.

Hoang Quang Phong, deputy chairman of VCCI, said the trade pacts were a sign of Viet Nam’s development and its success at globalisation, but while both the TPP and EVFTA have not come into effect, the AEC agreement was signed on November 22, 2015, and must be exploited.

Andrew Holt, first secretary and head of political and economic section of British Embassy Hanoi, said the AEC was the first community established in Asia with a total GDP of around US$3 trillion from its 10 member countries. The ASEAN expected the AEC to create a highly competitive environment that would help integrate the region deeper into the world economy.

Service price mechanism applicable on services, goods fees     

Service price mechanism will be applicable on fees and charges of 17 types of services and goods from January 1, 2017, a Finance Ministry official said.

During a meeting organised on December 27 by the Ministry of Finance, Director of Ministry of Finance’s Price Management Department Nguyen Anh Tuan explained the new price mechanism, saying the State will no longer collect the fees of some 17 goods and services but just be responsible for determining their specific prices.

The 17 types of goods and services which applied service price mechanism include water-related public services; veterinary drug testing services; cadastral measurements and cadastral mapping services in cases when the State assigns land, leases land or changes the purpose of land use in areas where there is no cadastral map and fee for the use of surface areas at marketplaces; as well as ferry toll and Build-Operate-Transfer (BOT) road toll, port and terminals services fee and parking charge and sanitation charge, Tuan said.

He added that the government’s intention to switch to a service price mechanism aims to encourage private-public partnership projects and attract investment to improve the quality of public services, which essentially causes no change in the State’s revenue.

According to the Ministry of Finance, the State’s revenue earned from fees and charges previously accounted for less than five per cent of the total State budget’s revenue.

Regarding the basis for such decisions, Tuan informed the meeting of the latest changes in pricing law as contained in Decree No. 149/2016/ND-CP, dated November 11, 2016, of the government on amending and supplementing a number of articles of Decree No. 177/2013/ND-CP, dated November 14, 2013, by the government, providing guidance on the implementation of a number of articles of the Law on Pricing.

Six ministries and the people’s committees of cities and provinces have been ordered to adjust and determine prices of those 17 types of services and goods, Tuan said, adding that the appointed bodies would be in charge of determining maximum prices, minimum prices and price range for the goods and services. He also noted that the fees would then be collected by non-state sectors.

The adjustment and determination of prices of the 17 types of goods and services has been assigned to Ministry of Finance; Ministry of Agriculture and Rural Development; Ministry of Transport and Ministry of Labour, Invalids and Social Affairs; as well as Ministry of Industry and Trade and Ministry of Health, along with the people’s committees of cities and provinces within the country.

Beer prices rise 1 month before Tet     

With a month to go for Tet (Lunar News Year) the HCM City beer market is heating up, with prices rising virtually daily.

The owner of a shop called Beer Loan on Tran Xuan Soan Street, District 7, told Viet Nam News that a case of 24 cans of Tiger beer has seen its price increase by VND6,000-7,000 in recent weeks to VND314,000 (US$13).

The prices of all brands would definitely increase in the coming days, she said.

A beer seller in Tan Phu District said prices were rising by the day.

Retailers predicted the prices to make a surge just before Tet, which falls on January 28 this time when they sell beers produced specifically for the festival.

The owner of Beer Loan explained that breweries had sold all the beers packaged specifically for Tet and traders had bought them and were waiting for the holiday to sell at higher prices.

She said consumers like to buy beers made specifically for the occasion to gift family and friends.

While retail prices have been increasing, breweries said they are making efforts to keep prices steady and would fully meet demand.

Though refusing to divulge production figures for Tet, Sapporo Vietnam’s General Director Mikio Masawaki told Viet Nam News that his company had increased production of Sapporo Premium Beer by 20 per cent since there is high demand for canned beer during Tet.

Sapporo has not increased prices and in fact, has co-operated with distributors to keep them steady, he said.

Prices would not rise if the demand is fully met, he said, adding that the company expected demand to be high between the end of this month and mid-January.

A Heineken Vietnam spokesperson told Phap Luat HCM City (HCM City Law) newspaper that the company would surely meet demand even if it increases by 15-20 per cent during Tet.

Talking about the increase in beer prices, the chairman of the Viet Nam Association of Beer, Wine and Beverages, Nguyen Van Viet, told the newspaper that companies were under pressure from higher special consumption tax.

Furthermore, demand always rises during Tet and provides retailers the opportunity to increase profits, he said.

The municipal Department of Industry and Trade has said it would monitor prices of consumer goods during Tet, including those of beers.

Beer consumption in the city is expected to increase by 30 per cent during the period to 40 million litres, it said. 

HCM City rolls out support program for start-ups

The Ho Chi Minh City Department of Science and Technology has unveiled a comprehensive program to support the innovation and growth of start-ups that are driving new breakthroughs in product development.

The program provides unique tools, resources and opportunities to the waves of entrepreneurs starting new companies, so they can develop products and services with a first-mover advantage.

We’re committed to helping innovative companies in the City break new ground said Le Thanh Liem, vice chair of the City People’s Committee at a press conference announcing the new program.

Qualified companies in the fields of mechanics, chemistry, information technology, food processing and biotechnology may be eligible for financing of up to US$87,840 (VND2 billion).

The cut-off date for financial assistance applications is January 1, 2017.

Vietnam's economy expands 6.2% in 2016

The agriculture sector has been facing obstacles this year. But foreign investment and trade surplus numbers all look good.

Vietnam’s economy expanded an estimated 6.21% this year, lower than the original target of 6.7% set by the government, according to data released on December 28.

The services and industry sectors were the key drivers as agriculture was hit by a series of extreme weather events.

"In general the economy has been growing strongly, except for the agriculture and mining sectors," said Nguyen Bich Lam, head of the General Statistics Office, pointing out there have been upheavals in financial and monetary markets around the world.

Inflation was also under control, at 4.74%, lower than the 5%ceiling, officials said earlier at a conference last week.

Retail sales reached around US$118 billion in total, up 10% compared to last year. Vietnam’s retail turnover is expected to rise to US$179 billion by 2020, according to the Association of Vietnam Retailers.

Vietnam has become an attractive destination for foreign direct investment. The country has received an estimated US$15.8 billion so far, up 9% from a year ago.

New FDI pledges and additional funds to finance existing projects this year saw a 7% increase. Korean investors, notably LG, led the pack.

“A lot of investment has come this year in expectation of the TPP,” said Thomas Jandl, East Asia expert at the Washington-based American University.

Now that the trade deal, formally known as the Trans-Pacific Partnership, may not become true, experts still say investment inflows for next year will remain strong. The Financial Times has listed Hanoi and Ho Chi Minh City among global investment magnets for the year ahead.

Exports reached around US$176 billion this year, up 8.6% compared to 2015. The country posted a trade surplus of US$2.68 billion, the biggest in six years, data from GSO showed.

Amid Samsung's fiery Note 7 scandal, exports of mobile phones and parts still saw an increase of 14%. Other key products such as pepper and coffee also posted growth, but not rice.

The U.K's Brexit vote to leave the European Union would not be a concern to the bilateral trade relations between the two countries, said an official from the General Statistics Office.

Experts also said, even without TPP, Vietnam has other free trade agreements to lean on and will continue to increase its trade activities.

The year has also seen 110,000 new business launches, up 16.2% from 2015, a trend attributed to more relaxed regulations under new enterprise and investment laws.

These new companies are expected to create nearly 1.3 million jobs. On the other hand, the number of businesses that shut down surged 32% to nearly 12,578.

Exports to Cambodia dip more than 10% 
 exports to cambodia dip more than 10% hinh 0

Vietnam exports to Cambodia dropped 10.63% to US$1.9 billion for 11 months leading up to December 2016, according to Vietnam Customs.

exports to cambodia dip more than 10% hinh 0 In the reviewed period, Vietnam companies shipped 28 groups of products to Cambodia. Key export products included steel with an export value of US$271.9 million (down 24.98%), followed by petroleum (down 25.23% to US$256 million and garment (up 18.59% to US$221.3 million).

Most export products to Cambodia witnessed a decline. Fertilizer saw the deepest fall of 93.12% to US$76.4 million.

Only a few products obtained a robust export growth like telephones and components (up 1618.23% to US$2.6 million) and wood and timber products (up 371.12% to US$10.8 million).

Business climate improvement effort yet to pay off

Through Resolution 19 the Government has shown its resolve to make life easier for businesses but a slew of hindrances to production and business activities have remained.

In a comment on a review report on three years’ implementation of the resolution, the Ministry of Planning and Investment said the gap between what the resolution targets and what has been achieved is woefully wide.

The resolution is intended to improve the business environment and the competitiveness of the nation to catch up with leading ASEAN economies.

The Government will meet with city and provincial leaders on December 28 in a teleconference to review the execution of the resolution.

If well implemented, the resolution would help shore up private sector investment. But it was not until this year that ministries and localities had begun showing some change in their thinking and actions.

The report by the Ministry of Planning and Investment says most ministries, agencies and local authorities are fully aware of the objectives, tasks and measures set out in the resolution.

The 2016 version of Resolution 19 identifies 13 groups of general tasks and solutions and 83 particular tasks for ministries, agencies and local authorities. So far, 35 solutions have been adopted and have brought results (42.2%); 19 have been carried out without a clear effect (22.9%); and 29 have not been implemented (34.9%).

A number of cities and provinces have drastically enforced the resolution and achieved encouraging results as shown in a number of indicators. Many of them have executed Resolution 19 on a regular basis, including HCMC, Quang Ninh, Hanoi, An Giang and Dong Thap.

At the conference “Hanoi 2016 – Cooperation for investment and development” held in the capital on June 4, the city’s leaders said: “Hanoi will be a pioneer to improve the business environment and competitiveness in the spirit of Resolution 19.”

However, Resolution 19 has not received an enthusiastic response from many ministries and localities.

In 2014, when the resolution first came out, most of the ministries, agencies and localities did not draw up action plans. Those who did devise a plan failed to meet criteria for business climate improvement based on international practices, says the report.

In response to the 2015 version of Resolution 19, only a handful of local governments mapped out action plans, and many just did it perfunctorily. The action plans of some localities set out goals but contained no specific tasks and solutions.

With Resolution 19 of 2016, many provinces have neither adhered to the resolution nor produced clear results, such as Thanh Hoa, Quang Binh, Lao Cai, Thai Binh, Quang Nam, Nam Dinh, Thai Nguyen and Quang Tri.

The latest version of the resolution was issued on April 28, but months later some provinces came up with action plans, like Khanh Hoa on September 14, Hau Giang on August 23, Kien Giang on August 8, Son La on August 12, and Ca Mau on August 17.

Therefore, the Ministry of Planning and Investment report says that most indicators of Vietnam’s business climate have yet to reach the average levels of ASEAN 4, or even ASEAN 6. A number of countries in the region have carried out a lot of reforms and outdone Vietnam, with Indonesia and Brunei having moved up 15 and 25 notches respectively.

In the 2016 Global Competitiveness Rankings of the World Economic Forum, Vietnam comes 60th among 138 nations and territories, down four places from last year (56/140). This ranking is only above Laos and Cambodia, and below most other ASEAN countries.

Customs sector fails to meet yearly tax collection target

The customs sector collected 261.49 trillion VND (12 billion USD) for the State budget this year to December 25, equal to 96.82 percent of the year target, according to the General Department of Vietnam Customs.

The department said the falling crude oil price is one of reasons behind the reduced tax revenues, as the yearly plan was based on the assumption that oil price was 60 USD per barrel.

Besides, the enforcement of several free trade agreements brought down the tax rates on petrol imports from ASEAN and the Republic of Korea, cutting into tax collection.

Lower-than-expected economic and export growth rates are other causes.

As more taxes will be reduced to zero in 2017 and the years after, revenues from import-export tariffs and special consumption taxes are expected to drop further, prompting the sector to look to other sources such as environment taxes and value added tax (VAT).  

Le Manh Hung, deputy head of the department’s Import-Export Tax Department, said the VAT rates, which stand at 5 and 10 percent at the moment, are relatively low in comparison with that in other countries in the region.

He pointed to the need to change the structure of tax collection sources in order to ensure revenues for the State budget.

The customs sector’s revenue mainly comes from import-export tax, special consumption tax, environmental protection tax and VAT.

The sector was assigned to collect 270 trillion VND for the State budget in 2016, with 91 trillion VND to come from import-export tax, special consumption tax and environmental protection tax, and 179 trillion VND from VAT.

Ha Tinh province makes breakthrough in industrial development

The central province of Ha Tinh has achieved a breakthrough growth in the industry sector despite difficulties caused by natural disasters and the marine environment accident.

The province’s industrial production index increased by 15.37 percent compared to last year.

Ha Tinh licensed 108 investment projects during the year, up 22 projects against 2015. They included 100 domestic-invested projects with registered capital of 8 trillion VND (over 351 million USD) and 8 foreign-funded ones worth 155 million USD.

Ha Tinh also paid attention to policies supporting and encouraging local small businesses. To date, it has 6,234 local businesses listed in the National Business Registration Portal, in which 4,831 firms and unites are operational.

There were 930 enterprises established in the province in 2016, presenting an annual increase of 7.9 percent.

Both the collective and private economic sectors witnessed swift development, with 230 cooperatives and nearly 4,000 household businesses set up.

The locality has built 18 industrial clusters, attracted 233 projects, of which 135 are being implemented.

The local industry sector is expected to record high growth and contribute 12.68 percentage points to the provincial economic growth in 2017, helping Ha Tinh become an industry and tourism province.

Vietnam-RoK economic cooperation records strong boost

Trade relations between Vietnam and the Republic of Korea (RoK) has reached new development milestones, with two-way trade surging 80 times to 40 billion USD in 2016 from only 0.5 billion USD in 1992. 

In the field of industry, Vietnam imports materials for producing for-export goods while ships electronics, textiles and footwear to the RoK. 

Regarding investment, the RoK is currently the largest investor in Vietnam with about 5,600 projects worth 50 billion USD across 52 provinces and cities, whilst Vietnam is the RoK’s third largest economic partner. RoK firm such Lotte, CJ, Samsung, and Daewoo are companies that have effective operation in Vietnam now. 

Kim Inho, Chairman of the Korea International Trade Association (KITA) said the Vietnamese Government’s investment attraction policies have helped bring development opportunities to foreign businesses, including those from the RoK.

Vietnam’s stable economic growth lays a solid foundation for RoK firms to expand investment in Vietnam.  

The Vietnam-RoK Free Trade Agreement, which took effect in late 2015, has ushered in a new stage in the trade ties between the two countries, creating impetus to a greater investment flow from the RoK into Vietnam in the coming time.

According to Nguyen Hong Son from the Ministry of Industry and Trade, two-way trade between Vietnam and the RoK recorded annual average growth of 19 percent in the last ten years. 

RoK firms are investing in 18 different fields in Vietnam, with high-technology and service being the main sectors, contributing to the change of the economic structure of Vietnam. 

Vietnam is calling for the RoK’s investment in the agro-forestry-aquaculture sector, which is hoped to create a new cooperation field between the two nations’ enterprises in the near future. 

Notably, trade relationship between the two countries’ localities, especially big cities, has been intensified in recent years. 

Park Noh Wan, RoK Consul General in Ho Chi Minh City affirmed Vietnam is the leading destination for RoK firms’ business and HCM City is the RoK’s most potential consumption market in Vietnam. 

RoK companies are seeking to invest in agriculture and farm produce processing in Vietnam, adding that local-level trade promotion events will help the two countries’ businesses to establish partnership and sign specific agreements. 

Deagu is the first RoK locality has signed a comprehensive cooperation agreement with HCM City, paving the way for strong economic exchange between the two cities, towards expanding their trade turnover in the coming time. 

With the role as a key economic hub of Vietnam, HCM City has been giving and will offer more preferential policies to, improve the legal framework and create favourable conditions for RoK enterprises in particular and foreign in general to invest in the locality. 

The RoK ranked fourth among foreign investors in HCM City with approximate 1,300 project worth 4.3 billion USD.

Highest Tet bonus in Binh Duong Province is $8,782

The highest bonus in the southern province of Binh Duong for the coming Tet (Lunar New Year) has been reported to be $8,782 at a foreign-invested business, the province labor department has announced. 

The province Department of Labor, War Invalids and Social Affairs released information on bonus payment by about 200 businesses that employ 80,000 employees.

Accordingly, enterprises announced that bonus for the Tet holiday will increase by 10-15 percent compared to last year with the highest bonus that for the New Year is VND200 million ($8,782), which was recorded at a foreign-invested enterprise.

Meanwhile, the bonus for the coming Lunar New Year is lowest equaling to one month salary for those has one year working time in the company which has been offered by a private business.

The highest bonus for Tet holiday in State-run companies is VND82 million while private companies is VND30 million.

The Department added that some enterprises will announce bonus for Tet holiday at the end of 2016. It is hoped that more businesses will give high bonus to employees.

Banks enter new interest rate hike race

In a fresh race to lure depositors, a number of banks have revised up annual interest rates by 10 to 30 basis points for certain tenors and, at the same time, launched attractive promotion programs, Dan Tri news website reports. 

Sacombank has raised the interest rate for two-month deposits from 4.9% to 5% a year and 6-to-11-month deposits from 5.9% to 6%. The bank applies an annual rate of 7% to savings with tenors of 15 months or above. 

Notably, 13-month deposits enjoy an interest rate of 7.55% per year but the total value must be at least VND500 billion (US$22 million).

VPBank hiked the one-month rate from 4.9% to 5.2% a year and the 12- and 13-month deposit rates by 0.4 percentage point to 6.9%. It added 20 basis points to deposits registered online, sending the highest to 8% for the 36-month rate and deposits of more than VND5 billion. 

Earlier, other commercial banks such as Eximbank, Techcombank and TPBank increased interest rates for some tenors by 0.1 to 0.3 percentage point. TPBank is also running promotion programs to lure depositors. 

There is a wide gap between big banks’ interest rates and those of smaller banks.

Vietcombank and Agribank offer interest rates of 4.3-4.5% per year for one-to-three-month deposits while rates for long tenors stand at some 6.5%. Meanwhile, deposit rates for tenors of less than six months reach 5.5% and for long tenors soar to 7.5-8% at small banks. They are 1-1.5 percentage points higher than at bigger banks.

Experts said that by hiking deposit rates, banks want to retain customers amid surging demand for cash to make year-end payments.

On the interbank market, the overnight, one-week and two week rates for Vietnam dong loans hit 10-month highs in mid-December. The average overnight rate climbed from 1.25% to 5.1% per year, the one-week rate from 1.17% to 5.11% and the two-week rate from 0.95% to 5.07%.

Data of the State Bank of Vietnam (SBV) showed that loans had grown 15.8% while capital mobilization had risen 15.2% in the year to end-November.

According to Bao Viet Securities Company, strong credit growth last month was boosted by stronger demand for loans at the end of the year. It led the banking system’s liquidity to edge lower than in the third quarter and sent interbank rates soaring. 

The SBV did not issue treasury bills and continued injecting money into the banking system via open market operations (OMO) with a combined VND22 trillion in the previous three weeks.

Bao Viet Securities said interbank rates would stay high until the Lunar New Year, which falls in late January, at 4.5-5% per annum.

Savico, VietinBank ink strategic partnership

Saigon General Service Corporation (Savico) has struck a deal with Vietnam Bank for Industry and Trade (VietinBank) to forge strategic cooperation in the 2016-2021 period.

Mai Viet Ha, general director of Savico, told the signing ceremony last week that VietinBank would support Savico and its member enterprises to bolster their finances to expand their distribution networks and improve their competitiveness.

Savico looks to expand its auto distribution share in the market for members of the Vietnam Automobile Manufacturers Association to 10% by 2020 from this year’s 8.5%.

VietinBank Branch 10 also signed agreements with two Savico member firms, Toyota Dong Saigon JSC and Nam Song Hau Automobile JSC, to provide short-term loans.

By end-November this year VietinBank Branch 10 had raised around VND5 trillion and had reported total outstanding loans of over VND2.8 trillion, VietinBank said on its website.

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

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Vietnam to allow screening of 18+ movies from 2017


A new film-rating system is slated to take effect on January 1, 2017, allowing for the first time the screening of adult movies not suitable for viewers under 18 years of age in Vietnam.


 
A sexual scene of Vietnam's film Huong Ga. Tuoi Tre


According to the new ratings by the Ministry of Culture, Sports and Tourism, movies will be labeled based on four age restrictions before reaching theaters across Vietnam.

The classifications include films that are suitable to general audience, with all ages admitted, and movies that are only allowed for viewers of at least 13, 16 and 18 years of age, respectively.

The respective labels for the four categories are P, 13+, 16+ and 18+.

The rating system is quite different from that of the Motion Picture Association of America, which includes such ratings as G (General audience), PG (Parental Guidance Suggested), PG-13 (may be inappropriate for children under 13), R (Restricted - under 17 requires accompanying parent or adult guardian) and NC-17 (Adults Only).

The 18+ rating applied in Vietnam is similar to the NC-17, which is worded as “no one 17 and under admitted.”

According to the culture ministry, the ratings are based on such parameters as the film theme, topic, language, content and the level of untidy, sexual and violent scenes, as well as the use of drugs.

Until today, the companies that release adult films in Vietnam usually have to cut all explicit scenes to be allowed to screen the works as 16+ movies.

The new rating system, which finally allows films intended for adult viewers to be screened, is therefore hugely welcomed by Vietnam’s film industry.

Local filmmakers said they will no longer have to worry if their works are banned from screening for explicit content, while releasing firms can now sigh a breath of relief as they will no longer have to show cut movies to fans at the expense of their complaints.

A recent flick released late 2016, Chay Di Roi Tinh, was in an ironic situation when it was forced to be labeled as 16+ because Vietnam was then yet to have the 13+ rating. Consequently, a young actor of the film was not allowed to watch his own movie as he is under 16 years old.

TUOI TRE NEWS

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Shares end 2016 on positive note


 
Investor watches stock moves. The benchmark VN Index closed up on the last trading day of 2016, gaining 14.8 per cent in the past year. - Photo laodong.com.vn


HÀ NỘI - Shares ended the last trading session of the year yesterday on a positive note on both local bourses, driven by increasing demand for large-cap stocks during the closing period of the day.

The benchmark VN Index on the HCM Stock Exchange closed slightly up at 664.87 points, totaling a two-day gain of 0.2 per cent.

The HNX Index on the Hà Nội Stock Exchange finished at 80.12 points, up 0.7 per cent from Thursday and 1.6 per cent since Tuesday.

The southern market index has risen 14.8 per cent since December 31, 2015, while the northern market index remained nearly flat after one year.

Market trading liquidity surged from the previous sessions of the last trading week with more than 154 million shares being traded across the two bourses, worth VND3.24 trillion (US$144 million).

That included more than 43.3 million shares, worth VND1.13 trillion, which were traded via put-through transactions.

The stock market remained negative and quiet most of the time during the last trading session, but investors’ strong demand boosted large-cap stocks in the At The Close Order (ATC) period.

Among the 10 largest shares by market capitalisation, seven advanced, including Sài Gòn Beer-Alcohol-Beverage Corp (SAB), property developer and retailer Vingroup (VIC), private equity firm Masan Group (MSN) and Faros Construction Corp (ROS).

SAB gained 0.4 per cent, VIC inched up 0.2 per cent, MSN rose 1.4 per cent and ROS increased by 1 per cent.

The energy sector also contributed to the market’s gains yesterday after oil prices rose higher on confidence for a production cut that could begin in early 2017.

US crude West Texas Intermediate (WTI) was traded at $53.82 a barrel, slightly higher than Thursday’s closing price.

Among local energy stocks, PetroVietnam Gas Corp (GAS) added 1.5 per cent, PetroVietnam Drilling and Well Services Corp (PVD) and PetroVietnam Technical Services Corp (PVS) advanced 2.5 per cent each.

The banking sector was the worst hit among 20 industries on the stock market, as the Bank for Investment and Development of Viet Nam (BID) and Eximbank (EIB) dropped 0.7 per cent and 6.2 per cent, respectively, while Vietcombank (VCB), Asia Commercial Bank (ACB) and Sài Gòn-Hà Nội Bank (SHB) ended flat.

The food and beverage industry was driven down by dairy producer Vinamilk (VNM), which fell 2.3 per cent. The stock suffered from profit-taking after increasing by 5 per cent in the previous three sessions.

Viet Nam News

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VN price management targets 4% inflation


The Department of Price Management will seek to improve market analysis and forecast in oder to implement appropriate policies and control inflation at 4 per cent, as set by the National Assembly for 2017, Deputy Minister of Finance Tran Van Hieu said.


 VN price management targets 4% inflation, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news

At a conference on Thursday, Hieu asked the price watchdog to tighten price management to prevent dramatic price hikes ahead of the Tet (Lunar New Year) holiday, especially in areas recently hit by natural disasters.

Although the macro-economy is expected to remain stable in 2017, potential exists for a rise in inflation, the department said. For example, the adjustment of healthcare and education fees in late 2016 and in 2017 are expected to create inflationary pressure.

The department said that power and fuel costs would also be under pressure, coupled with unfavourable weather conditions which would affect the supply of goods and services, especially food and food stuffs.

The price adjustments of products and services, which have significant effects on the economy, would be evaluated carefully to minimise their impacts and focus would be placed on market data collection and analysis, the department said.

Inflation under control

Nguyen Thi Thuy Nga, the department’s Deputy Director, said the department implemented flexible price management policies in coordination with other ministries to control inflation in 2016 at below 5 per cent as set by the National Assembly. The inflation rate had in fact been kept relatively low at 4.74 per cent in 2016.

This was due to the combined effort of the Government and financial economic administrative agencies, Nguyen Bich Lam, director general of the General Statistics Office of Viet Nam (GSO), said.

The low 2016 inflation was achieved through careful adjustment of prices by the Government according to market indicators, despite price hikes of several essential goods, Lam said at GSO’s year-end conference on 2016 economic indices in late December.

The reason for the CPI hike in 2016 was determined to be the Government’s upward price adjustment of healthcare services, higher demand for food and construction before the Lunar New Year, and El Niño’s effect on crops resulting in a deficit in rice supply and pushing the rice price higher.

December 2016 also saw the consumer price index (CPI) rise slightly by 0.73 per cent compared with November 2016. The CPI saw a light decrease in December in Ha Noi but rose 0.52 per cent in HCM City.

Annual core inflation increased 1.83 per cent compared with 2015.

The rise in core inflation from January to December 2016 compared with the same period in 2015 showed narrow amplitude, fluctuating from 1.64 to 1.88 per cent, a result of a steady monetary policy being put into practice, helping the country’s macroeconomic stability and keeping inflation under control.

The Ministry of Industry and Trade worked together with the State Bank of Viet Nam in 2016 to organise a steady supply of goods to insulate the market from sudden price hikes and to adjust the exchange rate between the VND and US dollar to suit the macroeconomic scene.

The year 2017 will see a change in the inflation calculation method by using the average annual CPI instead of the change in CPI between December of the current year and the previous one, Le Thi Minh Thuy, director of the GSO’s Trade and Service Statistics Department, said.

Lam also expressed the GSO’s concern through a petition to the Government proposing several solutions to keep inflation under control in 2017, with the target of a four per cent CPI rise as indicated by the National Assembly.

As such, price adjustment methods must be employed for healthcare services, electricity, water and interest rates, and a close watch must be kept on global oil prices to prevent the domestic price from shooting up and affecting the 2017 CPI. 

VNS


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Hai Phong to apply more port fees in 2017


From January 1, Hai Phong will start collecting fees for using infrastructure, service facilities and public utilities from shipments at all ports in the city.


 
 Hai Phong to apply more port fees in 2017

The information was announced by Hai An District People's Committee. It is estimated that the city could earn up to VND1.5trn each year.

Individuals and organisations that have shipments stored at bonded warehouses now must pay VND2.2m (USD97) to VND4.8m per container, depending on the load. The fees for goods in transit are VND500,000 to VND1m.

The infrastructure fee is an expansion of the service costs relating to temporary import and re-export, transit, storage in bonded warehouses which was implemented in 2013. Revenues have increased year-on-year and reached VND750bn (USD33m) in 2016.

According to the Hai Phong Department of Finance, its ports receive 80 million tonnes of goods each year and can collect VND1.5trn (66m) from the proposed fees.

However, many import-export firms said the costs were too high because they are already paying customs fees, shipment handling fees and import and export taxes.

 Dantrinews

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Hanoi’s satellite areas: a dream that may not come true


The development of satellite urban areas is expected to help Hanoi share the burden of accommodation, training, industry and services, but resources are needed to develop this model, according to experts.


 Hanoi’s satellite areas: a dream that may not come true, social news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, Vietnam net news, Vietnam latest news, vn news, Vietnam breaking news
The Xuan Mai satellite urban area is quite slovenly. Experts said that resources are needed to develop the satellite urban model.


Under the Masterplan for Hanoi’s socio-economic development to 2020, with a vision to 2030, the capital city will have five satellite towns with different functions and characteristics, including Hoa Lac, Son Tay, Xuan Mai, Phu Xuyen and Soc Son.

The main role of the Hoa Lac satellite town will be to serve science and technology development and training, while Son Tay satellite town has been selected as the urban area of historic culture and resort tourism.

Xuan Mai satellite town will be the urban area of services - industries supporting the development of small industries and craft village systems; Phu Xuyen satellite town is dedicated to industry, transportation hubs, and transshipment of goods; and Soc Son satellite town will focus on the development of industry and air services, eco-resort tourism, medical centers and universities.

Director of the Institute of Construction and Urban Economics, Pham Sy Liem, said at a recent conference on satellite urban areas for Hanoi that these are designed to ease the burden on cities, particularly coping with such “diseases” as pollution, traffic congestion, infrastructure shortage and social ills.

The head of the Hanoi Institute of Socio-economic Development Study, Nguyen Hong Son, said satellite towns  were effective and necessary solutions to the population growth, expected to reach 6.2 million by 2020-2030, and to the pressure on infrastructure and environmental pollution in the city centre.

The number of vehicles in Hanoi keeps increasing, reaching 5.4 million motorbikes and 600,000 cars by September this year, which leads to regular traffic jams.

However, Hanoi is facing many difficulties in building the satellite town as planned.

Former vice chairman of the municipal People’s Council, Le Van Hoat, said there were still no policies and programmes to encourage the development of satellite urban areas. The city also faced challenges in mobilising investment for developing the infrastructure, he said.

The development of satellite urban areas requires huge amounts of capital, while the budget earmarked for building and developing satellite urban areas remains limited, according to Sơn.

Investment in recent years focussed on developing infrastructure for the city centre, not for suburban areas, he said.

Participants at the conference agreed that it was harder to attract investors when the infrastructure and planning system was yet to be completed.

Given Hanoi’s lack of preferential policies to develop satellite urban areas, many investors decided to invest in neighbouring provinces such as Thai Nguyen and Bac Ninh, they said.

Another difficulty facing the development of satellite urban areas is the population spread, according to former vice chairman Hoat. Encouraging people to move to satellite towns is a key to their success but the habit of house ownership also hinders this task. Not many people who own a house in the city centre want to move to satellite towns to live.

he head of the Hanoi Institute of Construction Planning, Nguyen Truc Anh, said Hanoi would need to have mechanisms and policies as well as supporting services to attract investment in satellite urban areas. Measures to attract city residents to live and work in satellite towns were also important, he said.

Many participants suggested that Hanoi develop a transport system to connect the city centre with satellite towns. However, all agreed that this, too, would require investment resources. 

VietNamnews

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Trying to ease reliance on China, Vietnam increases imports from South Korea


Vietnam’s GDP has increased by 5.5 times in the last 15 years, while the trade deficit with China has increased by 171 times. 

 vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, Vietnam net news, Vietnam latest news, Vietnam breaking news, vn news, trade with China, trade deficit, MOIT
The trade deficit decreased in the first 11 months of 2016.


In 2001, Vietnam for the first time witnessed an excess of imports over exports in the trade with China. The trade deficit was $189 million. In 2015, it soared to $32.4 billion, or 171 times.

However, instead of the two-digit growth rate, the import turnover from China decreased in the first 11 months of 2016.

“The imports from South Korea are on the strong rise, especially electronics imports. Meanwhile, the imports from China, ASEAN and Japan have slowed down,” commented Nguyen Duc Thanh, director of VEPR (Vietnam Institute for Economic and Policy Research) when talking about Vietnam’s trade balance.

In 2001, Vietnam for the first time witnessed an excess of imports over exports in the trade with China. The trade deficit was $189 million. In 2015, it soared to $32.4 billion, or 171 times.

A report of the General Department of Customs (GDC) showed that by November 2016, Vietnam had imported $45 billion worth of products from China, a slight decrease of 0.06 percent compared with the last year’s same period.


Meanwhile, the growth rate in exports to China was the fastest among Vietnam’s major trade partners. With Qexport turnover of $19.6 billion to the market, the rate was nearly 27 percent.

This helped reduce the deficit in trade with China to $25.4 billion, or a 14 percent decrease compared with the last year’s same period.

Until 2000, Vietnam had always exported to China more than importING from the country.

In the last 15 years, when the trade deficit with China increased by 171 times, its GDP increased by 5.5 times only, from $35.3 billion to $193.6 billion as reported by the World Bank.

The highest trade deficit growth rate was seen in 2013 when the figure soared by 44.5 percent in compared with 2012.

Analysts commented that Vietnam has put a break on the trade deficit with China because it has increased imports from South Korea.

In the first 11 months of the year, the import turnover from South Korea increased sharply to $28.9 billion, up by 13.3 percent in comparison with the last year’s same period, while the imports from all other countries decreased.

An analyst said there are some reasons for Vietnam to tend to buy South Korean products instead of Chinese.

First, as Vietnamese have become more powerful and financially capable, they would rather import South Korean machines and equipment instead of Chinese which are cheap but have low quality.

In 2015, Vietnam imported $9 billion worth of machines and equipment from China, or 18 percent of total import turnover from the country.

Second, South Korea has become the biggest foreign direct investor in Vietnam, while South Korean enterprises tend to use machines and materials from South Korea.

Thanh Mai, VNN

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Price management targets 4 percent inflation in 2017

 
Graph shows Vietnam's average core inflation over the years. (Photo: VNA)


Hanoi -The Department of Price Management will seek to improve market analysis and forecast in order to implement appropriate policies and control inflation at 4 percent, as set by the National Assembly for 2017, Deputy Minister of Finance Tran Van Hieu said.

At a conference at the end of December, 2016, the Deputy Minister asked the price watchdog to tighten price management to prevent dramatic price hikes ahead of the Tet (Lunar New Year) holiday, especially in areas recently hit by natural disasters.

Although the macro-economy is expected to remain stable in 2017, potential exists for a rise in inflation, the department said. For example, the adjustment of health care and education fees in late 2016 and in 2017 is expected to create inflationary pressure.

The department said that power and fuel costs would also be under pressure, coupled with unfavourable weather conditions which would affect the supply of goods and services, especially food and food stuffs.

The price adjustments of products and services, which have significant effects on the economy, would be evaluated carefully to minimise their impacts and focus would be placed on market data collection and analysis, the department said.

Inflation under control

Nguyen Thi Thuy Nga, the department’s Deputy Director, said the department implemented flexible price management policies in coordination with other ministries to control inflation in 2016 at below 5 percent as set by the National Assembly. The inflation rate had in fact been kept relatively low at 4.74 percent in 2016.

This was due to the combined effort of the Government and financial economic administrative agencies, according to Nguyen Bich Lam, director general of the General Statistics Office (GSO).

Annual core inflation increased 1.83 per cent compared with 2015.

The rise in core inflation from January to December 2016 compared with the same period in 2015 showed narrow amplitude, fluctuating from 1.64 to 1.88 percent, a result of a steady monetary policy being put into practice, helping the country’s macroeconomic stability and keeping inflation under control.

The year 2017 will see a change in the inflation calculation method by using the average annual CPI instead of the change in CPI between December of the current year and the previous one, Le Thi Minh Thuy, director of the GSO’s Trade and Service Statistics Department, said.

Lam also expressed the GSO’s concern through a petition to the Government proposing several solutions to keep inflation under control in 2017, with the target of a four percent CPI rise as indicated by the National Assembly.

As such, price adjustment methods must be employed for health care services, electricity, water and interest rates, and a close watch must be kept on global oil prices to prevent the domestic price from shooting up and affecting the 2017 CPI. - VNA

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$2.3 billion credit package to change face of Vietnam agriculture


 Here are six outstanding events of Vietnam’s agriculture in 2016.


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1.Vietnam for the first time witnessed fruit export turnover exceeding crude oil export turnover, which has been the strategic export item for many years.

In the first nine months of 2016, Vietnam exported $1.81 billion worth of vegetables & fruits, an increase of 31.8 percent in value compared with the same period last year. Meanwhile, oil exports brought turnover of $1.7 billion, a decrease of 43 percent.

The vegetable & fruit exports have exceeded some other strategic items such as coal ($73 million), garment and footwear ($1.1 billion)

2. ‘Land accumulation’ was the term mentioned by many experts in 2016 when discussing solutions to develop agricultural production. 

In the first nine months of 2016, Vietnam exported $1.81 billion worth of vegetables & fruits, an increase of 31.8 percent in value compared with the same period last year. 

Small-scale agriculture based on household production is believed to be the reason behind the slow development of Vietnam’s agriculture.

Vietnam now has 4,000 agricultural enterprises, 12,000 cooperatives and 29,500 farms, which show that there are few major factors in organizing large-scale merchandise production.


Prime Minister Nguyen Xuan Phuc has mentioned the expansion of agricultural land limits as an important factor to organize large-scale production and create high-quality farm produce at low production costs.

3.The government has committed to reserve VND50 trillion to the development of high-technology agriculture

Phuc emphasized that all localities and individuals/institutions wishing to carry out high-technology agriculture projects will receive preferential credit from the government.

4. 2016 was a tough year for Vietnam’s agriculture. The record cold spell in the first months of 2016 in the north, and drought and salinity intrusion in Mekong Delta caused severe damage to farmers' incomes and agricultural production.

A report showed that by the end of April 2016, the damages caused by the drought and salinity intrusion had reached VND9.02 trillion.

5. The campaign on banned substances in animal husbandry reached a peak in 2016.

MARD, which joined forces with the police, tested 89 meat samples within a short time and discovered that 23 samples tested positive to Salbutamol.

Breeders have been threatened they will be punished more heavily if they use banned substances in farming. They will be sentenced to up to 20 years imprisonment and forced to pay up to VND1 billion in fine.

To date, about 285,000 households have committed not to use banned substances.

6. Vietnam for the first time in the last 10 years saw minus growth (- 0.18 percent) in agriculture in the first half of 2016. This was blamed on unfavorable weather conditions.

The Ministry of Planning and Investment estimated that drought and salinity intrusion caused damages worth VND15 trillion to Vietnam’s economy. The hardest hit were Kien Giang, Ca Mau, Ben Tre and Bac Lieu provinces.



Mai Nam, VietNamNet Bridge

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