Reject the ruling on East Sea case, China put in unfavorable position The Permanent Court of Arbitration (PCA) on July 12 ruled on the case of the Philippines against China’s nine-dash line in the East Sea (internationally known as the South China Sea). China’s claims to historic rights over waters within the nine-dash line are contrary to the 1982 United Nations Convention on the Law of the Sea (UNCLOS), the PCA at The Hague, the Netherlands, said. Former head of the government’s Border Committee Dr. Tran Cong Truc talks with VietNamNet about the PCA’s ruling.  Dr. Tran Cong Truc (right) talks with VietNamNet reporter. Q: What is the fundamental impact of the ruling on the situation in the East Sea at present and in the near future? Tran Cong Truc: The lawsuit between the Philippines and China is about the wrong interpretation and misapplication of the UNCLOS 1982. The Philippines made 15 submissions to the PCA, with three groups of issues. However, we understand that this ruling can only address one of the complex disputes in the East Sea. Other disputes are more complicated. But this ruling has a huge impact because it is a premise, a lesson for other countries. In particular, the ruling refers to a content of public concern - China's nine-dash line claim which covers up to 80-90% of East Sea. This ruling rejects the legal basis of China’s claim. This content is very significant in the context of the current dispute. I want to emphasize that it is very meaningful for the protection of the validity of international law, particularly the UNCLOS 1982. Q: Since the Philippines lodged the case, China has always insisted that it does not recognize the PCA’s ruling. What do you think about the upcoming moves of China? Tran Cong Truc: I think it is very normal when China made arguments to defend their views in the East Sea dispute. But the arguments of China are unsuitable with the contents that the PCA has jurisdiction over and the contentbrought by the Philippines. China said they did not acknowledge the jurisdiction of the PCA because the lawsuit was related to the issue of sovereignty over the features in the East Sea and the delimitation of overlapped waters, but actually the Philippines did not make submissions about it and the PCA did not consider that content, also. It is more important to see what consequences will be made by the attitude of China. I think if China continues to behave that way, it will be unfavorable for them in front of public opinion. China’s role and position in international bodies, especially in the United Nations as a superpower, a member of the UN Security Council, as a very active member of the UNCLOS, will be underestimated. I believe that the Chinese people of goodwill and scientific view will reconsider their viewpoint to make the ruling effective. Q: Many big countries have expressed their support for the ruling. What do you think about the attitude of the others? Tran Cong Truc: Before the ruling was made, many countries raised their voice and made very favorable comments for the ruling of the PCA and they also called on China to seriously abide the ruling. The G7 countries, the United States and countries in the EU, and others such as Australia, Japan, India, several countries in Asia, Southeast Asia... have expressed their attitude. These countries have the common aspiration of protecting international law and and the Law of the Sea. Their voice is no longer showing support or lack of support to a single country. Q: How about the impact of the ruling on Vietnam? Tran Cong Truc: This ruling is beneficial as Vietnam can research and learn from the case to continue its legal struggle to protect the legitimate rights and interests in the East Sea. Vietnam always wants to settle disputes by peaceful means, through negotiation. But if negotiations are ineffective, then maybe the very civilized measure is bringing the case to international tribunals. Pham Huyen, VNN |
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BUSINESS IN BRIEF 14/7 Vietnam’s industrial production index declines  The country’s industrial Production Index (IIP) increased 7.5 percent in the first half of this year, much lower than the rate of 9.7 percent during the same period last year, reported the Ministry of Industry and Trade. The index decline was due to continuous output reduction in mining industry in the wake of crude oil price plunge. Crude oil extraction dropped by 6.1 percent in the second quarter. The inventory index of processing and manufacturing industry hiked 9 percent over the same period last year. The highest inventory levels were of motor vehicle manufacturing, electronic products, computers, paper and paper products. Vingroup secures $300 million syndicated loan Vingroup, a major player in Vietnam’s property sector, has secured an additional international syndicated loan of $300 million to finance its real estate project developments and reorganize its debts, following its first international syndicated loan of $150 million in 2013. A representative from Vingroup’s Public Relations Department preferred not to disclose to VET which projects would receive funding from the loan. “We cannot reveal at this time the projects to be invested in, as Vingroup has a series of projects in place,” he said. The loan will be implemented as soon as Vingroup converts the $300 million into its shares. It will pay a floating rate with a margin of 5 per cent compared to the current Libor rate of 0.75 per cent. Apart from investment, the loan will fund Vingroup’s debt restructuring. “The group’s cash flow is fine and repaying liabilities will only account for a minor part of the loan,” the representative told VET. With a five-year term and a lower interest rate than the previous loan, this loan will help the company not only balance its local and foreign capital flows but also stabilize its internal finances, reducing risks due to interest rate fluctuations. The term is double the 2013 loan, with Vingroup being the first Vietnamese real estate company to manage such financing. Vingroup was also the first in Vietnam to issue offshore convertible bonds valued at $400 million through 2009 and 2012, followed by a $200 million investment by the Warburg Pincus consortium in the company’s retail unit in 2013. The deal put Vincom Retail at a $1.1 billion valuation. The Warburg Pincus private equity firm from the US injected $100 million in follow-on funding into the company in 2015. Recent Vietnamese media reports have indicated that Vingroup has acquired a land plot in western Hanoi from VinaCapital’s VinaLand Limited for $16.2 million. Vingroup’s projects real estate projects include Vinhomes Vingroup Central Park, Golden River Vinhomes, Vinhomes Gardenia, Vinhomes Metropolis Lieu Giai and a range of Vincom Shophouse project in major cities. Retail is a new focus for Vingroup. The number of Vinmart and Vinmart+ supermarket and convenience store outlets in Vietnam stood at 880 as at June. Vietnamese fruits introduced in Czech Republic A “Vietnamese Fruit Day” was held at the Makro Stodulky supermarket in Prague, the Czech Republic on July 11. The event, organised by the Ministry of Industry and Trade in collaboration with the Vietnamese Embassy and the Makro Group, was aimed at promoting Vietnamese fruits in and seeking opportunities for the farm produce to enter into the Czech Republic and other Eastern and Central European countries. At the event, 19 kinds of Vietnamese fresh fruits, including longan, lychee, custard-apple, banana, sapodilla plum, dragon-fruit, rambutan, mango and jackfruit, were on displayed and sold. Customers had a chance to taste and learned about the use and benefits of the tropical fruits. Vietnam gained a 33 percent year-on-year increase in the fruit and vegetable export value to reach 1.17 billion USD for the first half of 2016, said the Vietnam Fruit and Vegetables Association. The country expects to make 2 billion USD on fruit and vegetable exports this year. Last year, Vietnam’s fruit and vegetable export value reached 1.8 billion USD, 23.7 percent higher than 2014. Call for Eximbank BoD to be dismissed A member of the Board of Directors (BoD) of the Vietnam Export Import Commercial Joint Stock Bank (Eximbank) has proposed the current BoD be dismissed due to its inefficiency. Mr. Dang Phuoc Dua, who represents a group with a 10.3 per cent stake, sent a letter to the State Bank of Vietnam (SBV) and relevant authorities on July 1. In early June a group with a 11.71 per cent stake demanded some of the current BoD members be dismissed. Mr. Dua wrote that the current Board is not working effectively and not respecting shareholders. Some members hold none or less than 0.1 per cent of shares. They are not sufficiently responsible, which has led to a decline in financial activities and a loss in market share. He also wants to allow shareholder groups with more than 10 per cent to be able to nominate representatives to the Board, to be voted on at the next meeting. Eximbank announced on June 30 an extension to the deadline to receive nominations to the Board, from June 30 to July 14. Six representatives had nominated, the bank announced on July 4, representing groups holding more than 10 per cent, and included Mr. Dua, Mr. Nguyen Trung Kien, Mr. Pierre Erik Theron, Mrs. Nguyen Thi Xuan Loan, Mr. Diep Quang Nhan, and Mrs. Ngo Thu Thuy. There has been no final decision made on the addition of one or three delegates to the current Board, which currently has nine members. The bank planned to organize an extraordinary meeting in August. The first two annual Board meetings earlier this year failed to gain a quorum (65 per cent of shareholders). A third Board meeting must be called before an extraordinary meeting can be held. Eximbank holds a significant market share in the export and import sector, with an extensive network throughout the country consisting of a head office, 44 branches, and 163 transaction offices, and it has one subsidiary and one joint venture. Its main shareholders are the Sumitomo Mitsui Banking Corporation, with 15 per cent, and Techcombank, with 8.19 per cent. The bank has more than 6,100 employees and is listed on the stock market (EIB), with total charter capital of VND12.4 trillion ($556 million). It recorded accumulated losses of VND820 billion ($36.8 million) in 2015 with net profit in 2014 and 2015 of VND340 billion ($15.3 million) and VND40 billion ($1.9 million), respectively. Mr. Dua was appointed Deputy Chairman of Eximbank’s BoD in March 2014 and was a former consultant to the bank’s BoD from December 2015 but resigned last May. Last year Eximbank postponed its annual board meeting three times, to the end of July. In December an extraordinary meeting was held in order to vote for the BoD but a representative of a main shareholder group was been selected. Questions were then raised about the vote’s transparency. Exports to Mexico show upturn Mexico is one of Vietnam’s leading trade partners in Latin America, according to the latest statistics from the General Department of Vietnam Customs. Total trade between Vietnam and Mexico hit US$1.1 billion in the first half of this year, up 18% against the corresponding period last year. Vietnam’s exports to Mexico rose 25% to nearly US$900 million and imports from the country dipped 6% to US$221 million in six months, helping Vietnam enjoy trade surplus of more than US$660 million from the Latin American market. Import-export products saw positive changes this year. Key export products to Mexico included coffee, farm and seafood products, electronic components, machines, equipment, garment and footwear. Exports to Mexico in the rest of this year and coming years are expected to rise high if bilateral trade and investment programs are effectively implemented after the signing of the Trans-Pacific Partnership (TPP) Agreement. Amata seeks incentives for Halong Thailand’s Amata Group is asking for special incentives from the Vietnamese government for its US$1.6 billion industrial park and township complex in Quang Ninh province, enabling the complex to be competitive with neighbouring VSIP Haiphong and Dinh Vu industrial parks. According to Amata’s latest press release, the group will establish Amata City Halong JSC this September, in which Amata will hold a 70% stake, with 29% owned by Tuan Chau Investment Hi-tech Infrastructure Development JSC and 1% held by Dao Thi Doan Trang. Trang is the daughter of Dao Hong Tuyen, chairman of Tuan Chau Group, the holding company of Tuan Chau Investment Hi-tech Infrastructure Development JSC. This movement confirms Amata’s determination to develop the large-scale complex, the first of its projects in the northern Vietnam. According to the group’s initial plans, the 5,800 hectare complex will feature an industrial park (IP), a residential township, a hospital, schools, an exhibition centre, a shopping centre, and an amusement park. Under Vietnam’s existing legal regulations on tax incentives for such projects like Amata’s, companies investing within Amata’s future complex can get only two years of tax exemption and four years of a 50% reduction on the 22% corporate income tax (CIT) rate. In addition, there is no personal income tax reduction for workers in the industrial park’s tenants. In comparison, as VSIP Haiphong and Dinh Vu are located within Dinh Vu-Cat Hai economic zone (EZ), their tenants are by default enjoying tax incentives offered to EZ including a 10% CIT over a 15 year period, with the first four years exempt and the following nine years at a 50% reduction. The rates are considered the highest of their kinds in Vietnam. Therefore, Amata is seeking the Ministry of Planning and Investment’s (MPI) support to enable Amata City Halong’s tenants to enjoy a 10% CIT rate over 18 years, with the first five years fully exempt, 50% reduction on this rate over the next eleven years. In addition, it requested an 8% CIT rate for hi-tech companies for the entirety of their lifetime, and a reduction by half of the personal income tax rate for hi-tech companies’ workers at the site. Amata also asked for an exemption on their land and water rentals. However, the MPI said that Amata’s proposals far exceeded the existing tax incentives that the Vietnamese government had granted to IP tenants in an EZ. Somhatai Panichewa, president of Amata (Vietnam) JSC, the developer of the Amata Bien Hoa industrial and township complex, and CEO of Amata VN Plc. (listed on Thailand’s stock exchange, and the developer of all future projects in Vietnam), explained that Amata asked for this support package from the Vietnamese government because it wished to increase its competitiveness against VSIP Haiphong – situated only 16 kilometres from the proposed Amata City Halong. Amata has been investing in Vietnam since 1994, with its maiden project of Amata Bien Hoa, in the southern province of Dong Nai. Investors reduce Hoa Phat holdings The VinaCapital-managed Vietnam Opportunity Fund (VOF) and Vietnam Investment Property Holdings Limited have sold 1.03 million and 550,000 shares, respectively, in the Hoa Phat Group (HPG). According to an announcement from HPG, VOF’s ownership falls from 5.21 per cent to 4.99 per cent with the sale and it is no longer a major shareholder. A communication officer with VinaCapital, told VET that announcement documents on the transaction have been sent to the Ho Chi Minh City Stock Exchange and to HPG. “The sale of HPG shares is just a regularly activity in updating Vinacapital's investment portfolio,” she told VET. “VinaCapital still appreciates the development potential of HPG.” In August 2015 Mr. Andy Ho, Executive Director and Chief Investment Officer at VinaCapital, resigned as a member of the board at HPG. Some foreign funds have also sold large amounts of HPG shares recently. In June, Private Equity New Markets II under PENM Partners, an independent Danish private equity company offering equity capital and strategic partnerships to unlisted Vietnamese companies, sold 8 million shares in HPG. In mid-2015, foreign funds including VinaCapital, Deutsche Bank, and Dragon Capital reduced their holdings. Foreign investors now hold 36 per cent of shares. Some investors say that foreign funds are fleeing HPG while others say it is part of investment restructuring and is nothing specifically connected to the Group. HPG’s revenue in 2015 stood at $1.2 billion and after-tax profit VND3.5 trillion ($155.5 million). Steel production made the largest contribution to revenue and profit, with 79 per cent and 82 per cent, respectively. Starting last year HPG has made many changes to its strategy, deciding to invest in agriculture, particularly livestock feed production. It also invested further in coated steel sheets, in which it has long dominated the market. Early this year it established the Hoa Phat Agricultural Development Co. in the field of animal husbandry and feed production, with charter capital of VND2.5 trillion ($111.1 million). The project’s objective is to create a closed feed chain for the group’s livestock and to supply feed to the market. The company has imported 500 pigs from Denmark for breeding and anticipates providing clean pork to the market in 2018. By 2021 it targets having over 1 million pigs around Vietnam. It has also spent millions of dollars on building a farm to prepare for importing 3,000 heads of cattle from Australia next month. HPG has promoted its investment in animal feed with the aim of claiming market share form dominant foreign groups such as CP, Proconco, New Hope, Cargill, and Green Feed. Despite diversifying its business lines, HPG still promotes its core businesses. It recently began construction of a factory producing coated steel sheets with a capacity of 400,000 tons per year, which is expected to come into operation in 2018. For 2016 it targets revenue of VND28 trillion ($1.25 billion) and after-tax profit of VND3.2 trillion ($142.2 million). Singaporean palm oil giant strengthens Vietnam presence The world’s largest palm oil processor and one of the largest soybean buyers is strengthening its share in Vietnam’s cooking oil market. The Singaporean-based Wilmar International will buy 45 per cent of Bunge Ltd’s oilseed crushing factory, the company announced on July 5. The terms were not disclosed. The Quang Dung Company, a soybean meal distributor in Vietnam, will retain a 10 per cent share in the factory, creating a three-party joint venture, according to Reuters. With an annual capacity of 1 million tons, the factory crushes 3,000 tons of soybeans every day into 600 tons of soybean oil and 2,500 tons of soybean meal. The soybean oil is used for consumer products while the soybean meal is used as animal feed. The oilseed crushing operation was established in 2011 and is located at the Phu My I Industrial Zone in southern Ba Ria Vung Tau province. Bunge is Vietnam’s largest producer of soybean oil. Its chartered capital stands at VND560 trillion ($25.1 billion) with revenue for 2014 reported at VND12.8 trillion ($574 million). “This joint venture will strengthen Bunge’s operations, marketing and logistics,” Wilmar’s CEO Mr. Soren Schroder was quoted as saying. Wilmar is “a partner who really knows what they’re doing in oil marketing,” said Mr. John Baize, President of the international agricultural trade and policy consultancy John Baize and Associates. “It makes sense for Bunge because they get to pull out capital, which they can put back into their core businesses.” Wilmar’s target after the deal is to “integrate operations that are both a source and sales outlet for oil in Vietnam,” according to the statement. “It will also help the company to remain a low-cost operator with the highest efficiency possible,” Mr. Schroder added. In 2008 Wilmar bought the Hung Phu factory established in 2003 by the Cai Lan Oils & Fats Industries Company (Calofic) in the Mekong Delta’s Can Tho city. With a daily capacity of 500 tons, the factory produces rice bran meal as animal feed and rice bran oil for consumer products. Calofic, in which Wilmar holds a 76 per cent stake, is the leader in Vietnam’s cooking oil market with a 37 per cent market share. It reported total 2015 revenue of VND11 trillion ($493 million), three times higher than its nearest competitor, the Tuong An Vegetable Oil Company. Calofic has won the trust of a wide range of customers with its famous brands, including Neptune, Simply and Meizan. The Vietnam Vegetable Oils Industry Corporation (Vocarimex) announced on June 27 that it will sell 24 per cent out of its 51 per cent holding in Tuong An. It seems likely that Vocarimex will sell the stake to the KIDO Group Corporation, who confirmed with VET that it would increase its stake in Vocarimex to 51 per cent in the second half of this year. With KIDO aiming to cooperate with Vocarimex and with Wilmar’s strategic deal, the country’s cooking market is set to see fierce competition. Vietnam’s cooking oil market now has 40 companies producing and selling cooking oil products, 70 per cent of which are palm oil, 23 per cent soybean oil, and 7 per cent vegetable oil, according to data from the Ministry of Industry and Trade. It is a growing market for oilseeds due to increased demand in the livestock industry, where soybean meal is a major animal feed. The country is projected to import 5.2 million tons of meal in 2016/17, up from 2.291 million a decade ago, according to data from the US Department of Agriculture. Muong Thanh developing five-star hotel on Phu Quoc The Muong Thanh Hospitality Group acquired land last year on Phu Quoc Island at Sonasea Villas & Resort, developed by the CEO Group, and has been building a five-star hotel, a source from Muong Thanh revealed to VET. Located at the center of Truong Beach in the west of Phu Quoc, Sonasea Villas & Resort covers a total area of 80 ha on a 1 km stretch of beach and is one of the two largest hospitality projects with the longest beaches on Truong Beach. Muong Thanh Phu Quoc is expected to provide 300 rooms once completed in October, the source added. Phu Quoc Island is emerging as an ideal destination for hospitality investment, with major advantages from its natural conditions, strategic location, and the support and investment from the local government and enterprises. Its attractions come from ten stunning beaches along a 150 km coastline, an unspoiled ecosystem and rich biodiversity, a safari park - the second largest in the world - and casino developments being given approval. Under its revised general master plan to 2030, Phu Quoc Island will have three urban areas, 15 eco-tourism areas, two tourism complexes, and five golf courses. By 2020 it will be a Special Economic Zone (SEZ). Many key infrastructure projects such as Phu Quoc International Airport, the An Thoi International Seaport, and south-north axis road have been completed or upgraded. The Ha Tien - Phu Quoc underground electric cable was completed in 2014. There were a total of 2,500 units launched on the island in 2015, according to Savills Research Consultancy, including apartments, land plots, and villas. Among the local developers on Phu Quoc Island, Vingroup leads the villa market with a 76 per cent market share. Muong Thanh is one of the largest hotel chains in Vietnam, operating more than 50 three- to five-star hotels nationwide with each featuring the characteristics of its local region. With more than 17 years of experience in the hotel service industry, Muong Thanh Hospitality has developed rapidly and expanded its services and service quality to cater to thousands of domestic and foreign guests every year. First batch of Vietnamese dragon fruit for sale at Thai Big C Cao Thanh Phat Import and Export Company in Binh Thuan province has signed a contract with Thai TCC Group to sell the first 100 tonnes of Vietnamese dragon fruit at Big C supermarkets in Thailand. This is also the first Vietnamese fruit shipment distributed by TCC Group in the supermarket. To ensure the quality of exported agricultural products, Cao Thanh Phat has worked with farmers to cultivate dragon fruit following GlobalGAP and VietGAP standards. The packaging factory also meets US standards, Cao Thanh Phat CEO Nguyen Cong Kinh said, adding that the company has developed quality inspection departments to work with farmers and the factory to ensure the best quality. In addition to importing dragon fruit at a volume of 100 tonnes per month, TCC Group is stepping up plans to import other key Vietnamese agricultural products such as sweet potatoes, milk fruit, avocado butter, and lemon. HCMC seeks to build Cat Lai bridge HCMC has asked for the Government’s approval to build a VND5.7-trillion bridge connecting District 2 and neighboring Dong Nai Province as a replacement for the current Cat Lai ferry service. According to a document sent to the Government on Wednesday, HCMC proposed adding the bridge to the city’s master zoning plan for transport development by 2020 with a vision afterwards. The cable-stayed bridge is envisaged stretching four kilometers and having at least four lanes. It would start at My Thuy Roundabout in District 2 and end at Nhon Trach Urban Area in Dong Nai’s Phu Huu Commune, which is 1.2 kilometers from the existing ferry terminal. The bridge, which is designed to be 55 meters above the Dong Nai River, is estimated to cost VND5.7 trillion (about US$256.5 million), excluding loan interest, while VND1.23 trillion would be needed for site clearance. HCMC expects the bridge will help ease vehicular traffic at the Cat Lai Ferry area and shorten traveling time between HCMC and Dong Nai. If the Government okays the bridge project, the city would pick an investor who would have to arrange financing and draw up an investment plan for the project. In May, Construction Investment Corp. No. 194 proposed constructing the bridge under the build-operate-transfer (BOT) model at a cost of less than VND5.72 trillion. The authority of Dong Nai Province has thrown its weight behind the project. Earlier, HCMC did not include the Cat Lai bridge in its master zoning plan for transport development until 2020 as it had HCMC-Long Thanh-Dau Giay Expressway, which is three kilometers from the existing Cat Lai ferry terminal. The Ministry of Transport was also concerned that the bridge would obstruct container ship traffic in the area. TISCO seeks help for steel scrap imports Thai Nguyen Iron and Steel Joint Stock Company (TISCO) has asked the general departments of customs and environment and the customs of Haiphong City for approval to complete customs clearance procedures for steel scrap imports. TISCO said the company has not yet been granted an environmental protection certificate for steel scrap imports although it has applied for it. This means the customs cannot clear steel scrap it bought abroad. The company signed a contract to import 5,200 tons of steel scrap for recycling in April and another 3,000 tons of steel scrap would enter Haiphong Port soon. However, on June 15, the General Department of Customs said it only clears scrap imports that meet all requirements. TISCO also bemoaned the high ship docking cost of about US$4,500-5,000 per day in Haiphong Port. It added that steel companies are facing various procedure problems and fierce competition triggered by cheap steel imported from China. The company said its production plan would be seriously affected due to insufficient materials and that it would not be able to timely deliver products to customers as pledged. This will affect incomes of TISCO’s more than 5,000 employees. Therefore, TISCO urgently requested competent agencies to allow it to complete customs clearance procedures for imported steel scrap shipments at Haiphong Port while the company is awaiting an environmental protection certificate from the Ministry of Natural Resources and Environment. The company also asked relevant agencies to apply consistent policies and promptly inform enterprises of changes to help them adjust production plans. Govt Inspectorate looking into land lease to Formosa The Government Inspectorate is in the final stages of inspecting some projects in Ha Tinh Province to see how they comply with regulations on investment, and land management and use, including a longer-than-allowed land lease to Formosa. The local news site Dan Tri quoted Ngo Van Khanh, deputy chief of the Government Inspectorate, as saying that after carefully reviewing conclusions, the agency would report them to the Prime Minister. The agency will clarify responsibilities of those involved in awarding a 70-year investment license for the Formosa steel complex as it ran counter to the investment law. Under the 2005 investment law, the lifespan of foreign-invested projects is no more than 50 years, and the longer period which cannot exceed 70 years must be decided by the Government. The Government Inspectorate did not notice the Government’s permission regarding the valid period of the Formosa project in the north-central province of Ha Tinh. Commenting on Deputy Prime Minister Truong Hoa Binh’s order to find if there was corruption concerning the licensing of the Formosa project, Dr. Le Dang Doanh, former head of the Central Institute of Economic Management (CIEM), said competent authorities should clarify responsibilities of those involved. According to Doanh, that the project got a license to develop a vast area sensitive to national security and defense was beyond what the investment law specifies. Ha Tinh Province did not have authority to decide but still did it. Similarly, lieutenant general Nguyen Quoc Thuoc, former commander of Military Region 4, said it was unacceptable when the project got a 70-year investment license while the law only permitted 50 years or less. On the same side, Professor Nguyen Minh Thuyet, former deputy head of the National Assembly Committee for Culture, Education, Youth, Adolescents and Children, noted the case must be handled properly to prevent similar incidents from happening in the future. Deo Ca Tunnel ready in end-July Deo Ca Tunnel linking the central provinces of Phu Yen and Khanh Hoa will be opened to traffic on July 31 after four years of construction. The opening date was decided during Deputy Minister of Transport Le Dinh Tho’s trip to the construction site, according to a report released by the ministry. Deo Ca Investment Joint Stock Company said contractors are building a road section inside the tunnel and installing equipment. The project is scheduled to be put into use on July 31, two months ahead of schedule. The investor said it takes vehicles just over 10 minutes to pass through in the tunnel, instead of traveling around 45 minutes on the pass. Moreover, vehicles using the tunnel can avoid rockslides, which often occur in the rainy season. Deo Ca Tunnel will help boost trade and tourism in the central region in addition to creating a link between Phu Yen’s Nam Phu Yen and Khanh Hoa’s Van Phong. With a total length of 13.4 kilometers, the Deo Ca Tunnel consists of the 3.9-kilometer Deo Ca Tunnel and the existing 500-meter Co Ma Tunnel. Bridges and roads leading to the two tunnels have a combined length of over nine kilometers. In the original plan, the project would be implemented under the build-operate-transfer (BOT) and build-transfer (BT) formats, and cost an estimated of over VND15.6 trillion (around US$699.5 million). However, the total length of tunnel and road was revised down by two kilometers, so the cost was lowered to almost VND11.4 trillion (US$510 million). After the project is complete, Deo Ca Investment JSC will commence work on the second phase of Hai Van Tunnel, which requires over VND5.89 trillion. Work starts on shop area at VSIP Nghe An VSIP Nghe An Co Ltd has commenced construction on phase one of the ready-to-use shop area at its VSIP complex in the north-central province of Nghe An, a Vietnam News Agency report said. Phase one of the 5,000-square-meter area will be developed at a total cost of US$6 million and will provide workshops for tenants in light and clean industrial sectors. Each workshop has office and production areas with full supply of power, water and telecom services. The shop area is designed for enterprises in need of production sites in the early stage of development at the Nghe An VSIP industrial-urban-service complex. Tenants can get advice on legal procedures, employment issues and other services. Anthony Tan, general director of VSIP Nghe An, told the groundbreaking ceremony that the shop area would help investors shorten preparations for their production projects and cut startup costs. He said the shop model is appropriate for firms that want to implement small-scale production projects in the initial time. VSIP has reaped success in deploying such a model at its industrial park in the southern province of Binh Duong. According to Nghe An Province, the 750-hectare VSIP Nghe An complex got off the ground in September last year. VSIP has developed infrastructure on 128 hectares for phase one of the complex. VSIP Nghe An is constructing an operation building, an integrated wastewater treatment plant, and pumping and fire facilities toward the end of this year. It is expected that the first tenants could move in in the fourth quarter of this year. Equitization plans approved for 39 SOEs in H1 Competent agencies approved equitization plans for 39 State-owned enterprises (SOEs) with total value of VND27.06 trillion in the first months of this year. State stakes accounted for VND21.63 trillion of the total, according to a report on SOE equitization in the 2011-2015 period as well as tasks and solutions for the next five years sent by the Ministry of Finance to the Government. SOEs got VND4.17 trillion from their divestments from non-core operations in real estate, securities, finance-banking, insurance and investment fund management sectors in the first half, well above VND2.09 trillion they invested in the sectors. SOEs divested a combined VND10.74 trillion from the non-core operations in the five-year period although they earlier poured a total of over VND11.03 trillion (US$494.8 million) in these sectors. State Capital Investment Corporation (SCIC) withdrew State capital from 368 enterprises and collected more than VND6.9 trillion, 2.4-fold higher than the sum invested earlier, so it earned profit of VND4.06 trillion from selling State stakes. The corporation has taken over the State stakes worth VND8.72 trillion in 1,000 companies since its establishment. From 2011 to 2015, 478 SOEs were equitized and 80 others underwent restructuring. After going public, enterprises saw their chartered capital rising by 72%, total assets by 39%, equity by 60% and pre-tax profit by 49% last year. However, State capital divestments from the five abovementioned sectors have mismatched expectations. Shares sold at initial public offering (IPO) auctions are lower than targeted and State shares in equitized enterprises remain high, according to the report. Notably, the report pointed out many leaders of SOEs have intentionally delayed equitization plans as they are afraid of losing their leadership positions after the enterprises go public. PM okays disbursement time extension for home loan package The Prime Minister has given the nod to the State Bank of Vietnam’s proposal to continue the disbursement of loans agreed by banks and borrowers under the VND30 trillion home loan package, mainly for low-income homebuyers. The Government Office announced the Prime Minister’s ‘in principle’ approval for the extension of loan disbursements for the package with an annual interest rate of 5%. The package should have been completed on June 1 after three years of implementation in line with Resolution No. 02/2013. However, experts requested the program to be lengthened as many of the loans signed by eligible banks and borrowers had not been disbursed when it came to a close. The SBV was assigned to cooperate with the Ministry of Construction and relevant agencies to review and revise the regulations governing the implementation of the package, Saigon Giai Phong newspaper reported. In May, the SBV proposed the Government leader allow the program to continue until December 31 for banks to fulfill their lending contracts struck before March 31 this year with individuals and households who buy, lease, build and repair houses. As of May 10, banks had pledged a total of VND34.83 trillion (about US$1.56 billion) in loans for 56,240 borrowers and VND25.8 trillion of it had been disbursed. About 56,112 individuals had secured bank loans worth a combined VND27.447 trillion with disbursements totaling VND20.812 trillion. Banks reported they had disbursed VND26.73 trillion in total as of May 20, including roughly VND21.67 trillion for individual borrowers. Biggest hotel in Tien Giang makes losses Tien Giang Lottery Company may have to sell Mekong My Tho, the biggest hotel in Tien Giang Province, if losses continue. The property was put into service in October last year. The hotel in the Mekong Delta province is incurring monthly losses of around VND500 million (around US$22,420), provincial vice chairman Tran Thanh Duc said at a press conference on the province’s socio-economic performance on Wednesday. Duc said the hotel is expected to rack up losses in three years. But with the current ineffective management, it is unlikely to perform better after the period. The province, therefore, is finding ways to lease or sell Mekong My Tho Hotel to non-state firms to mitigate the pressure on the local State budget. It may take one year to complete required procedures to sell the hotel located on Tet Mau Than Street in My Tho City. “Tien Giang Lottery Company’s profit can cover such losses, but we could not do it that way,” Duc said. Duc said Mekong My Tho is the only four-star hotel in the city but it cannot organize events to woo guests. In addition, recreational activities in My Tho are not diverse and attractive enough for tourists. The hotel project cost VND370 billion, with VND360 billion (97.3%) of it contributed by the lottery company, VND5 billion (1.35%) by the Tien Giang Development and Investment Fund and another VND5 billion by HCMC Infrastructure Investment Joint Stock Company (CII). The 10-storey hotel has 114 rooms, including one President and four VIP suites, meeting rooms and restaurants. Binh Thuan seeks to lift PCI, improve business climate Representatives from over 110 enterprises in the central coastal province of Binh Thuan gathered together at a conference on July 12 to discuss how to improve the business climate and provincial competitiveness index (PCI) in the locality. Participants focused their discussion on analysing the reasons behind the decreased PCI ranking of the locality, and proposed solutions to the situation. Difficulties facing businesses operating in the locality were spotlighted at the event. Vice Chairman of the Binh Thuan Business Association Nguyen Trac said local public servants are slow to catch up with policy and mechanism reform, thus failing to provide support to businesses. He asked the local authorities to promote administrative reform and devise more policies on capital assistance, tax incentives and land rental prices, further making it easy for small- and medium-sized enterprises to foster their development. According to Chairman of the provincial Tourism Association Nguyen Van Khoa, many enterprises in Binh Thuan have hesitated to invest in the tourism industry because they come up against difficulties related to the tourism strategy and land planning. He suggested the local authorities build suitable regulations on land rental prices to attract more investors in the tourism industry, one of the province’s strengths. Other enterprises complained about obstacles in land clearance and land-related procedures, which delay the pace of many projects. In his remarks, Chairman of the provincial People’s Committee Nguyen Ngoc Hai requested local departments and sectors to hasten administrative reform and ensure a safe and stable business climate for enterprises in the locality. He said businesses can make their complaints directly to the provincial People’s Committee and pledged to promptly address their concerns. Binh Thuan ranked 26th in PCI in the country in 2015 with 58.85 points, down three levels compared to the previous year. Criteria which recorded point reduction were costs to join the market, time taken to complete administrative procedures, information transparency, time taken to implement State’s regulations, dynamism of the local authority, and legal institutions. The province is one of Vietnam’s major tourism destinations, and a national centre for sea sports and leisure tourism. It aims to welcome 4.6 million tourists this year, and collect 9 trillion VND (402.1 million USD) in tourism revenue. About 4.2 million people spent their holiday in the province in 2015, a year-on-year increase of 11.7 percent. Thailand aims to be among top 10 investors in Vietnam Thailand hopes to become one of the 10 biggest investors of Vietnam in the next two or three years from the 11th ranking at present, the Dau Tu (Investment) newspaper said, quoting President of Thailand-Vietnam Business Council Sanan Angubolkul. President of Thailand-Vietnam Business Council Sanan Angubolkul said at a recent workshop in Hanoi that Thai investment into Vietnam increased around 35 percent from 5.9 billion USD in 2012 to nearly 8 billion USD in mid-2016. He noted that Thai businesses have mapped out specific plans to increase investment capital in the fields of their strength such as retail, construction material production, thermal power, and cattle feed. Close to 2,000 Thai businesses have said they want to enter Vietnam while some experienced ones hoped to increase their market shares in the country. According to Thai Minister of Foreign Affairs Don Pramudwinai, many Thai businesses consider Vietnam their second hometown and want to carry out future business plans in the market. Thai companies pledged to supply Vietnam with high-quality products and services as they do in the Thai market, he confirmed. The establishment of the ASEAN Economic Community (AEC) at the end of 2015 serves as a driving force for Thai businesses to pour investment in Vietnam in order to tap not only the 93 million-strong Vietnamese market but also the greater AEC market with a combined population of 600 million. In addition, the success of major Thai business players in Vietnam, as seen in Central Group’s purchase of Big C Vietnam, Charoen Corp’s acquisition of Metro Cash & Carry, or the booming business of Siam Cement Group (SCG), CP Group, helps persuade potential Thai investors to the country. CP group, which entered Vietnam in 1988, now dominates the animal feed and meat product market in the country. Meanwhile, SCG posted 150 million USD in sales in Vietnam in the first quarter of this year, up 17 percent year on year, boosted by its packaging and tile business. Thammasak Sethaudom, Director General of the SCG Group in Vietnam, said SCG is ready to cooperate with Thai enterprises and Vietnamese partners to create a solid foundation for the bilateral investment activities. Thai companies also hope to receive support from Vietnam and believe that with better business environment Vietnam will welcome more investors from Thailand, he added. German investor to build solar power plant The German ASEAN Power Company plans to build a solar power plant in the central city with an investment of US$400 million, a senior official of the company has said. In a meeting with the central city's people committee, the company's general manager, Moritz Sticher said Da Nang was seen as a potential city in Viet Nam with development of renewable energy in the future. Moritz said the plant is designed with a capacity of 40 megawatt (MW), and the study and survey would start later this July. He said the company will cover construction and technology transfer for the city. Vice Chairman of the city's People's Committee, Tran Van Mien said the city always ensures top priority for high-tech and clean technology investment projects as Da Nang plans to build as a ‘green' city by 2025. According to a report from the city's Industry and Trade department, around 30 per cent of the city's population is using solar power for heaters, while five-star hotels and resorts have been using the solar power heater system as a saving and as an environment-friendly solution. The first solar power system of Da Nang was built in FPT Complex project -- the Information Technology (IT) Service Centre of Viet Nam software giant, FPT Corporation in 2014. The system supplies 12kWh each day and a solar-power heater system with a capacity of 1,500 litres. Da Nang is seen as the first city in Viet Nam to promote clean energy solutions for residential use as the city has been developed as a tourist attraction with green and high-tech industries. In 2014, the city's Science and Technology department began a one-year pilot project of installation solar power system for deep-sea fishing vessels. Last year, Viet Nam's first solar power with 19.2MW capacity project was built in the central province of Quang Ngai. Vietinbank's profit rises 10.3% Vietinbank on Monday reported a profit of VND4.273 trillion (US$190.75 million) in the first half of the year, up 10.3 per cent against the same period last year. Vietinbank General Director Le Duc Tho said the bank's total assets also increased nine per cent to reach VND850 trillion by the end of June. In the January-June period, the bank mobilised VND780 trillion, up 9.6 per cent, while its outstanding loans were worth VND729 trillion, up 7.7 per cent. The bank's return on assets (ROA) and return on equity (ROE) by the end of June were 1.1 per cent and 11.5 per cent, against one per cent and 10.3 per cent, respectively, in the same period last year. Earnings per share to grow by 10.5% VN-Index has increased by 15.1% from the beginning of the year till July 7, 2016. Earnings per share (EPS) on HSX shall rise by 11.3% and the VN-Index shall be traded at P/E of 13.5x, which is currently 14.9x (as of July 7, 2016). Cyclical industries such as real estate, financial services and technology are expected to be top performers, whereas commodity-based stocks will record low earnings. These are the key findings of FiinPro Talk #1 held by StoxPlus on July 8, 2016, in HCM City. Our database for calculation and analysis was extracted from the financial data of listed and public companies on FiinPro Platform, StoxPlus. The forecasted EPS was based on net income by management estimates, mostly from the annual general meeting of shareholders (AGMs), analyst forecasts from sell-side reports and our own forecasts. In fact, Viet Nam is still considered a frontier market, and international investors mainly bet on the growth potential of Vietnamese enterprises, particularly the growth potential of earnings per share or EPS. Based on our comprehensive data source of FiinPro Platform, it is estimated by StoxPlus that EPS 2016 on HSX and HNX shall increase to touch VND2,028, up by 10.5% compared with 2015. Cyclical industries with a high growth rate of EPS 2016 consist of real estate (up by 48.9%), banks (up by 30.7%), and technology (up by 30.4%). Meanwhile, oil and gas and chemicals are predicted to have negative EPS. Among the three exchanges UPCoM, HSX, and HNX, companies on UPCoM are expected to increase its earnings by 206.3% in 2016. Not only attracting investors by EPS, UPCoM also has active trading activities after SOEs divesture. These two factors imply that UPCoM is very attractive with a lot of potential investment opportunities in 2016. Methodology for calculation of P/E forward: Forward P/E ratio (share price/earnings per share) is calculated by dividing the market capitalisation of all firms in the sample by the net income of these firms (sample includes all the companies listed on HSX, HNX and UPCoM) Net income 2016 is based on (i) net earnings by management estimates mostly from their AGMs; (ii) analyst forecasts from sell-side reports; or (iii) industry earnings CAGR 2011-2015 by StoxPlus (excluding JVC, HAG and adjusting profit after tax of KDC) Our database for calculation and analysis covers more than 990 tickers on HNX, HSX and UPCoM. Price data was calculated on June 30, 2016. Stock price for calculating P/E was as of June 30, 2016. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR |
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Social News 14/7 Thousands of workers back to work after strike at Korean firm Over 1,500 workers at Panko Company, a subsidiary of South Korean Panko Group, returned to work this morning after four days of a strike for higher payment in Tam Ky city, the central province of Quang Nam. The workers went on strike on July 9 after three months of working because the company paid them lower than promised wages. Specifically, the salary was only VND2.7-3.1 million per worker a month instead of VND4 million (US$180) as per its recruitment announcement. In addition, Panko Company did not assist workers with accommodation and lunch allowance as the announcement. The workers came back to work after the company agreed to conduct four commitments, which have been reached after the Quang Nam Province Labor Union worked with the company and worker representatives. First, the company will increase lunch allowance from VND11,500 to VND15,000 a worker and improve the menu. Second, it will review working ability and skills of each worker to apply appropriate wage level and increase the bonus for industrious workers to VND100,000-200,000 a month starting July. However, the company said it has yet to be able to give workers fuel allowance as their requirements. Third, Panko will respect workers’ choice of primary health care places on their health insurance cards instead of having a single choice of Minh Thien Hospital in Tam Ky city as before. The provincial Labor Union and Panko Company has also agreed to establish a grassroots labor union to protect workers’ rights. Int’l Telefilm exhibition begins The Việt Nam International Exhibition on Film and Television Technology (Telefilm) was officially launched at the International Centre for Exhibition in Hà Nội yesterday morning. The exhibition aims to step-by-step, and officially, set up a transaction exchange centre for films and TV content and technologies of the highest quality, as a place focusing on qualified TV stations and units in the region. Addressing the opening ceremony of the event, general director of Vietnam Television, Trần Bình Minh said that Telefilm 2016 was a significant event that has attracted both domestic and international media attention. “In the context of global integration and development, Việt Nam’s television has acquired considerable multifaceted development and breakthroughs, especially in terms of technologies”, he said. “The event therefore creates a chance for Việt Nam’s television to meet and exchange experiences with counterparts, enhance the process of professionalising film and television production, update modern trends and gain new co-operation with domestic and international enterprises”. Two seminars on copyright protection and new technologies in producing TV programmes were also held during the first day of the exhibition. More than 200 companies, TV stations and units from 15 countries and territories including the United States, Germany, Japan, and South Korea, in addition to India, Turkey, mainland China, and Hong Kong, among others, have registered to open 350 stands to display their items. The event has also attracted producers nationwide including Cát Tiên Sa, BHD, TNS, and Lasta, as well as Sóng Vàng, ADT, Sunrise, Viêt com and Dolphin. One of the remarkable things in Telefilm 2016 is that preparations and behind-the-scenes stories from the event are streamed live on social networks like Facebook and YouTube. In addition, visitors also have a chance to experience visual studios and TV production stages. The event will end tomorrow. Conference intensifies Vietnam-Thailand relations The time-tested amity and all-round cooperation throughout history of Vietnam and Thailand will help the two become good partners in the ASEAN community, as heard an international conference held in Chulalongkorn University, Thailand on July 12. The event, jointly held by the Chulalongkorn University’s Institute of Security and International Studies and the Institute for Southeast Asian Studies under the Vietnam Academy of Social Sciences, is part of the activities to celebrate 40 th anniversary of Vietnam-Thailand diplomatic relations. Leading diplomats, researchers and policy-makers discussed significant issues to bilateral relations, noting potential for two countries to further cooperation in economics, politics, labour, climate change response and global warming. They also touched upon the cooperation among Mekong sub-region countries, ASEAN’s stance on the Permanent Court of Arbitration (PCA)’s fresh award on the East Sea dispute and climate change. They also mulled over the critical impacts of hydropower dams upriver on the Greater Mekong Sub-region countries and potentials of the East-West Economic Corridor in correlation with the Southern Economic Corridor. Regarding regional and global peace, sustainability and development, the participants suggested that Vietnam and Thailand should join hands with neighbouring countries to maintain peace, stability, and security in the East Sea. It is necessary to address differences and disputes related to sea in line with globally-recognised laws, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS), they highlighted, appealing to all parties concerned to respect the PCA’s ruling over the East Sea dispute. Vietnam and Thailand need to make concerted efforts to tackle problems encountered in fishing and labour spheres, they underscored. US$3.5 million for poor children in Quang Tri The Plan International Viet Nam cooperates with the central province of Quang Tri to launch projects to improve life, health and nutrition for poor children in disadvantaged districts in Quang Tri. The provincial People’s Committee and the Plan International Viet Nam on July 12 inked an agreement on the realization of a program to improve poor children’s living standards. The program, worth US$3.5 million, will be launched within five years from 2017-2021. It is aimed at improving disadvantaged children’s life through a number of community development programs in terms of comprehensive child care and development, child protection, climate change adaption and natural calamity reduction. The two sides agreed to establish a cooperative program to launch the programs and projects effectively. Promotional activities boost agricultural restructuring in Mekong Delt Plentiful promotional activities have contributed to enhancing the agricultural restructuring efficiency in the Mekong Delta, said Phan Huy Thong, Director of the National Centre for Agriculture Promotion. The efforts include shifts to other crops from rice to better adapt to climate change, and the application of technologies and VietGap standards in regional agricultural production. As one of the provinces hardest hit by drought and saltwater intrusion, Tra Vinh has expanded the model of planting forests in combination with shrimp growing. The province has also replaced one of its three low-efficient rice crops with other more lucrative plants such as corn and peanut, bringing in a profit of between 20-60 million VND (900 – 2,700 USD) per hectare to farmers. Meanwhile, Vinh Long has expanded the model of large-scale fields in the districts of Vung Liem, Tam Binh and Tra On, increasing rice productivity by 0.5 tonnes per hectare as well as reducing losses and production costs. The province has also piloted the cultivation of seasame, soybean, yam, and corn on 120 hectares in line with the VietGap standards, generating a profit of between 12-103 million VND (530 – 4,600 USD) per hectare, nearly eight times higher than that from rice. The rate of using machines in agricultural production activities has reached 82-97 percent, saving production costs and human resources while increasing rice quality and incomes for farmers. Deputy Director of the Vinh Long Department of Agriculture and Rural Development Nguyen Van Liem suggested regional localities coordinate with each other to fully tap consumption markets in an effort to boost the agricultural restructuring.- Israeli experts help Quang Nam develop advanced agriculture A delegation of Israeli experts had a working session with central Quang Nam authorities on July 12, pledging to help local farmers access advanced farming methods. The event was in preparation for the project to establish a centre for advanced agriculture development in the the central province. The experts briefed the local authorities on their recent fact-finding in Tam Phu commune, Tam Ky city, saying that agricultural production activities remain on a small scale. Vice Chairman of the provincial People’s Committee Le Tri Thanh echoed the remarks of the experts on local agricultural production and spoke highly of the advanced agriculture of Israel. Quang Nam agreed to build a centre for advanced agricultural production in Tam Phu commune, Tam Ky city, the official said, adding that the project will be carried out in other localities. He called on the experts to take into consideration the local natural conditions and local farming practice to enhance the efficiency of the project. The official also stressed the need for applying public-private partnership (PPP) model in building the centre. Tam Ky city is calling for investment in environment-friendly projects to turn it into a green city. The city also aims to develop a cleaner agriculture to generate higher added values on the same cultivation area. Quang Tri helps affected fishermen earn living A conference was held in the central province of Quang Tri on July 12 to seek solutions to expand the means of earning a living for fishermen who have been effected by the recent mass fish deaths. More than 8,000 households of 16 communes and towns in four local coastal districts have borne the brunt of the environmental incident. They are still relying on fishing, aquaculture and fishery services. The practice of farming remains small and scattered, yielding low productivity and output. At the function, Chairman of the provincial People’s Committee Nguyen Duc Chinh said the priority is to develop agricultural sectors such as plant cultivation and animal husbandry, adding that Quang Tri is now calling for investments and partnerships in agriculture. Fishermen will receive vocational training to secure jobs other than fishing, alongside assistance to continue their engagements in the fishery sectors, he noted. As heard at the conference, a number of farming models have been implementing across the affected area; local authorities are focusing on helping farmers expand production, starting from the autumn-winter season this year until the end of 2017. The issue of certificates for seafood netted in safe areas is also a priority. The province is working to upgrade the local fleet suitable to offshore fishing between now and 2020. Former vice chairman of Ministers’ Council dies The former vice chairman of the Council of Ministers, Nguyễn Ngọc Trìu, died on Saturday after a long illness, the Vietnam News Agency reported yesterday. He was 91. Trìu was born in 1926 in Tiền Hải District, Thái Bình Province. At the age of 19, he engaged in revolutionary causes and became a member of the Communist Party of Viet Nam one year later. He was a member of the Party Central Committee for three consecutive tenures, from the 4th to the 6th, and a National Assembly deputy for six terms. He also served in various significant positions in both local and central Government. The former vice chairman of the Council of Ministers (the post is now called Deputy Prime Minister) was Secretary of the Thái Bình Province’s Party Committee, Minister of Agriculture (now Agriculture and Rural Development), and head of the Central Economic Department (now the Party Central Committee’s Economic Commission). Trìu was deputy minister of agriculture in 1977 and then minister from 1979 to 1987. In his very first task as minister of agriculture, Trìu issued Instruction 339 to liberate the cattle labour force. The Instruction allowed households to raise cows and buffaloes without any quota, and gave the go-ahead for the free trade and slaughtering of the cattle without licence. It also permitted farmers to import cattle for breeds of better quality. That period witnessed some of the most challenging times for the country’s economy, including the agriculture sector. More than 80 per cent of the country’s population were involved in agricultural production. Trìu was known for his contribution to reforming the country’s backward farming industry. For his service, Trìu was honoured with the Hồ Chí Minh Order, the 70-year Party membership badge, and many other orders and medals. A national funeral will be held for Trìu. Bình Dương faces acute shortage of schools The southern Bình Dương Province is inviting private investors to build schools in an attempt to tackle the acute shortage of classrooms for new students. Bình Dương, which is home to many industrial zones, experiences a large increase in the number of students every year due to rising numbers of immigrant workers. “Investment in education from the private sector is encouraged because the province is unable to build enough new schools,” Dương Lê Nhật Nam, deputy director of Bình Dương’s Department of Education and Training, said. “The greatest problem we face is that the land fund for education is depleting, whereas the number of students is skyrocketing in some localities,” he said. He said the number of students at all levels, from nursery to high school, in the province was expected to rise by 30,000 in this school year. “With an annual increase of up to 30,000 students, the province needs to build at least 30 to 40 new schools each year, costing about VNĐ3 trillion (US$133 million),” he said. He said many schools had prepared plans to “stuff as many as 45 to 50 students into a classroom” in this school year, which begins in September, because there was no other solution. The province has sought several ways to tackle the problem, such as repairing old classrooms and reducing the number of day-boarders, to create more space for students. Priority in school enrolment is given to children of permanent residents or those having stayed in a locality for more than six months, in order to avoid overloading in localities that have a huge number of immigrants. Another solution, according to the Department of Education and Training, is that companies can build their own nursery schools in the precinct of their factories to look after workers’ children. Twelve private companies in the province have built nursery schools on their land, which were able to accommodate 2,400 children, the department said. Phan Thị Ánh Hồng, a worker of Shyang Hung Cheng Company that has built its own nursery school, said the model was very helpful and convenient. “By having a place to take care of our children, we feel secure and have a stronger attachment to our company,” she said. HCM City methadone programmes treat over 4,000 addicts The methadone detoxication programme in HCM City has had the desired effect and contributed to security and social order, the city People’s Committee has reported. The pilot programme began in 2008 and now includes 19 methadone treatment centres across the city, where a total of 4,029 patients have been treated, the city’s HIV/AIDS Prevention Committee reported on Monday. Trần Ngọc Du, director of the city Department of Labour, Invalids and Social Affair’s Social Evils Prevention Department, said the current number of methadone treatment patients only constitute half the targeted number. The city plans to set up three more centres in late 2016, to accommodate an additional 1,500 patients. Nguyễn Thị Hồng Phượng, director of the Consultative and Drug Rehabilitation Centre under the city’s Labour, Invalids and Social Affairs Department, said the facility had treated 359 drug addicts during two years ( May, 2014 - May, 2016). At present, 287 patients are being treated at Ms. Phượng’s centre. “"After a period of methadone treatment, many patients recovered well and reintergrated into the community. Most found jobs and a stable life,” she said. Dr. Phạm Thanh Hiếu of District 8’s Preventive Health Centre said free methadone was supplied to over 300 drug addicts, half of whom didn’t reside in the district. He said some patients stopped treatment but most addicts were detoxicated successfully. The city’s HIV/AIDS Prevention Committee said the methadone detoxification programme, funded to the tune of VNĐ18.345 billion (US$823,000), had met the aspirations of drug addicts as well as of their families and the community. However, the programme has met with funding difficulties after international organisations cut down their aid and the Vietnamese Government’s budget is limited, according to Du. Company fined for polluting water A copper mining company in the northern Hòa Bình Province faces a fine of VNĐ320 million (US$14,200) for polluting a stream, leading to mass fish deaths in its neighbourhood in early July. The penalty imposed on An Phú Copper Mineral joint-stock company was proposed on Monday to the province’s leaders by the Department of Natural Resources and Environment, deputy head of the department Nguyễn Trần Anh said. The waste water containing copper ore of the company, located in Yên Thượng Commune in Cao Phong District, was found flowing into the Màn stream on July 4. The incident led to mass fish and shrimp deaths along 5km of the stream. Fish in two ponds of two households in the neighbouring Yên Lập Commune also died. Nguyễn Trần Anh said the company admitted responsibility right after the incident and agreed to pay VNĐ61 million ($2,700) as compensation to the two affected households. He said the quality of the stream water was safe now, as confirmed by a test carried out on Monday. “People can use the water for their daily activities and for fish culture now,” he said. “We are examining soil samples and will publish the information later.” Adequate housing hard to find near industrial zones Ho Chi Minh City has a shortage of affordable rental homes available for people working in industrial zones, according to a recent study by the Japan International Cooperation Agency (JICA). The study shows that single wage earner households in the City making US$179 per month must on average pay US$30.43-US$39.38 per month more than they can afford on basic housing costs and other necessities. Thus, it is mandatory for both spouses of a family to work or other group living arrangements worked out just to pay the rent and put food on the table, says the Ministry of Construction (MoC). The number of affordable and available rental units in the industrial zones of the City meets just 20% of the demand, Trịnh Truong Son, deputy head of the MoC told a recent housing committee in Hanoi. The JICA study has borne out what those who work in housing policy have known for a long-time, said Mr Son, — that the majority of workers in the City’s industrial zones can’t afford the housing costs. In addition, an on-the-ground examination of the homes reveals that most are in varying states of disrepair, he said. Fixing the houses up to bring them to a liveable condition would require a substantial investment, he said, and in fact the cost of repairs would in many cases exceed the resulting value of the home. The houses also lack access to key amenities such as being in close proximity to public transportation hubs, retail establishments, and good quality parks – that so many of us here in Hanoi take for granted. Kenichi Hashimoto, head of the JICA research team that performed the study in turn emphasized that the inadequate housing situation is the primary cause that industrial zones are having trouble retaining skilled workers. It’s critically important that a national workforce and housing initiative address the problem by creating new affordable homes in neighbourhoods located near the industrial zones of the City. For his part, Nguyen Chi Hung, deputy chief of the Management Board of Industrial and Export Processing Zones favoured constructing new homes as opposed to renovating existing homes. I recognize that any forward-thinking housing plan needs to create a balance between making a more significant investment in the development of new affordable homes and the preservation of existing homes, he said. But due of the massive movement of workers to the industrial zones nationwide and the fact that it by far outstrips existing housing, we’ve already taken preliminary steps to begin a nationwide search for land to build new houses, he said. Based on its study, JICA experts suggested a few measures to help develop better housing for workers including reducing interest rates for loans to below 5% and stretching out the amortization period for repayment to more than 20 years. As the City struggles to spur equitable growth, the government must advance strategies that allow residents to benefit from the changes, the experts said, and improving the existing stock of affordable homes should be high on the list of top priorities. Man arrested for running US$340-million illegal sports gambling ring The Haiphong police said July 12 they arrested a 43-year-old man for allegedly running a major sports gambling racket with thousands of clients. Bui Quang Duong was taken in a month after the police arrested his 23 henchmen in Haiphong, Hanoi and several northern provinces. Investigators said Duong had been organizing the gambling online since June last year through websites with overseas servers with the total bets adding up to VND7.6 trillion, or over US$340 million. Following the arrests of his men, Duong fled to Ha Long Town in Quang Ninh Province by boat. He has confessed to his crime to the police. The Haiphong police are coordinating with the Ministry of Public Security to find out if more people were part of the gang. In Vietnam, gambling is illegal. Last month the ministry had arrested 10 people belonging to a gang that allegedly organized football betting involving thousands of gamblers in Haiphong, Hanoi and Ho Chi Minh City. It reportedly raked in hundreds of billions of dong from bets on football games, mostly played at the recently concluded European championship. WWF Vietnam launches “Save Saola” campaign The Vietnamese office of the World Wildlife Fund has launched a campaign to increase commitment from both the public and private sectors in the conservation of saola, one of the world’s most endangered mammals. The “Save Saola” campaign was kicked off on July 9, which has also been declared the World Saola Day by WWF-Vietnam. The moves were both meant to raise public awareness of saola, which is also one of the world’s most rarely seen mammals. Saola, often called the “Asian Unicorn”, was discovered in north-central Vietnam in May 1992 during a joint survey carried out by the erstwhile Vietnamese Ministry of Forestry and the WWF. Since that discovery, the mammal, which lives in the dense jungles of Vietnam and Laos, has only been recorded in the wild a handful of times. In November 2013, a number of camera trap photos gave renewed hope for its survival, 15 years after the last photographic evidence. This rare kind of mammal is threatened by poaching snares and the destruction of its habitat from illegal logging and injudicious development. There could have been as many as a 1,000 saola’s at the end of the American war in Vietnam, but scientists estimate only a few hundreds, or a few dozens of them exist in the wild today, according to WWF-Vietnam. In 2006, the International Union for the Conservation of Nature (IUCN) designated the animal “critically endangered” on the IUCN Red List of Threatened Species TM. “The saola symbolizes everything that’s at stake for us. If we can save it, we can save our forests, wildlife and the ecosystem including the freshwater that people living here depend upon”, said Dr. Van Ngoc Thinh, WWF-Vietnam’s country director. Amongst the early efforts to combat such threats, saola protected areas were established in 2007 in the provinces of Quang Nam and Thua Thien-Hue with support from WWF-Vietnam. Under the Carbon and Biodiversity (CarBi) Project, supported by the German KfW Development Bank, these areas have since grown into a network of protected areas across the saola’s core range in Vietnam and Laos, covering more than 200,000 hectares of Truong Son forests. The forest guards WWF-Vietnam recruited from local villages had by the end of 2015 removed 75,295 snare traps and dismantled 1,000 poaching and illegal logging camps. Saola are recognized by two parallel horns with sharp ends, which can reach 20 inches in length and are found on both males and females. They are a cousin of cattle but more closely resemble an antelope. Saola have striking white markings on their faces and large maxillary glands on the muzzle, which could be used to mark territory or attract mates. They are found only in the Truong Son Mountains of Vietnam and Laos. 8,000 new bikes, 750 cars hit Vietnamese streets every day Vietnamese are buying cars and motorbikes like there's no tomorrow. Sales of vehicles continued to grow at a very fast pace in the first half of the year, with car ownership in particular becoming even more affordable and appealing to many people. Figures from the Vietnam Association of Motorcycle Manufacturers showed that domestic sales in the first six months increased 8% year-on-year to more than 1.44 million. That translates to around 8,000 new bikes every day. Meanwhile, nearly 136,000 cars were sold over the same period, or nearly 750 every day. Compared to the same period last year, that was a staggering 31%surge. Industry insiders believe many people have been buying cars to avoid higher luxury taxes on large cars, which came into effect on July 1. But sales of small cars in upcoming months may benefit from lower tax rates, not to mention upcoming preferential tariffs for cars from regional countries. Reports from government agencies forecast that the demand for cars in Vietnam will be increasing in the coming years, which will impose heavy pressure on its overstrained transport infrastructure, especially in large cities like Hanoi and Ho Chi Minh City. According to the Ministry of Industry and Trade, more than 45 million vehicles are crowding Vietnamese roads. That has gone beyond the number of 36 million vehicles that the infrastructure system was originally expected to serve in the year 2020. Vietnamese community in Philippines welcomes the Hague tribunal's ruling This shows that "the rule of law always prevails over aggression, justice always prevails over coercion and intimidation,” they said in a statement on July 12. The overseas Vietnamese community in the Philippines has welcomed the decision by the International Court of Arbitration and congratulated the Philippines, while asking China to respect and abide by the tribunal's decision. The community held a press briefing in the Philippines on July 12 which was attended by nine political, social and religious organizations along with reporters from more than 30 local and foreign media outlets. The ruling on the case creates a legal basis for narrowing the scope of the dispute, promoting peaceful settlement of disputes in the South China Sea (Vietnam’s East Sea), averting one country’s efforts to recourse through sheer force of arms and the use of state bribery and intimidation, the statement said. The Vietnamese community believes that the ruling is impartial, objective and may open up opportunities for other countries with territorial disputes with China to follow in order to reduce tensions in the waters. “China’s attempt to bypass and ignore international law will have to bear all consequences and finally be stopped,” the statement said, urging China, a member of the UNCLOS-1982, to respect and abide by the tribunal's decision. The community also called on ASEAN to raise a common voice in support of the tribunal’s ruling. VAVA’s nationwide emulation campaign underway The Vietnam Association of Victims of Agent Orange/Dioxin (VAVA) launched the third national emulation congress held in Hanoi on July 13. Speaking at the function, head of the Party Central Committee’s Mass Mobilisation Commission Truong Thi Mai took note of the support given to Agent Orange (AO) victims by public agencies as well as individuals and organisations in Vietnam and overseas. She lauded the VAVA’s performance over the years, urging the association to continue their communication campaigns on the impact of chemical warfare. The VAVA should work to consolidate its position as an official representative for legal rights and interests of the AO community, Mai said. The implementation of policies targeting dioxin victims ought to be assessed for improvements, she added. The congress announced the President’s decision to bestow the Labour Order, First Class, upon the VAVA. On the occasion, standout individuals and groups inside the VAVA were granted the Labour Order, Third Class, and the Prime Minister’s certificate of merit in recognition for their contributions. The third national congress, themed “For AO victims”, took place in Hanoi on July 12-13 with the participation of 300 delegates, and is one of the activities held in response to the 55th anniversary of the Day for Agent Orange/Dioxin Victims (August 10, 1961-2016). About 80 million litres of toxic chemicals, mainly Agent Orange containing dioxin, were sprayed over the south of Vietnam during 1961-1971. Nearly 4.8 million Vietnamese people were exposed to the chemicals and about three million people and their descendants suffer from health problems as a consequence of the exposure. Ambassadors address social change in YouthSpeak campaign Seventeen young people are taking part in the YouthSpeak Ambassador Campaign, which encourages youth to dare to take action and initiate positive societal change. Among the outstanding ambassadors are Lê Nguyễn Thiên Hương, who has created a project to protect the World Natural Heritage site Sơn Đoòng; Lương Thế Huy, who fights for the rights of the LGBT community; and Hoàng Đức Minh, who has designed the Action4Future project. The campaign is part of the Youth for Sustainable Development Goals – YouthSpeak 2016 project, organised and developed by International Youth Organisation AIESEC in Việt Nam and the Việt Nam Chamber of Commerce and Industry. It is based on the UN’s 17 Sustainable Development Goals by 2030. The project consists of platforms for people aged 18 to 24 in HCM City, including the ambassadors campaign, YouthSpeak Contest, YouthSpeak Forum and an Opportunity Fair. Of the platforms, the Youth Speak Contest is among the most important event designed to solve problems related to violence against children in Việt Nam, according to Phạm Phú Vinh, chairman of the project. The contest has three rounds that will take place from July 1 to October 15 with a range of activities, including selection of qualified teams, training and analytical studies, and solutions presented to execute their ideas. Two people will be selected to present their projects at the ASEAN Summit in Kuala Lumpur in November. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNE |
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Article 9
Online portal to teach Vietnamese to overseas Vietnamese
HÀ NỘI - A new online portal will enable Vietnamese people living overseas to learn Vietnamese via the Internet, following a project recently approved by Prime Minister Nguyễn Xuân Phúc. The project, entitled “Intensifying teaching Vietnamese online to overseas Vietnamese” aims to help Vietnamese people living abroad, particularly the young generation, gain sufficient knowledge about their mother tongue in order to nurture their love for the homeland and maintain national traditions and character. The project will develop and maintain online Vietnamese teaching programmes at six levels, meeting the criteria of being basic, effective and easy to access. Vietnamese lessons and learning materials will be provided to learners to improve their pronunciation and knowledge in various majors, such as folk culture and art, science and technology and social science and humanities, among others. Learners will also be provided various documents such as handbooks in Vietnamese on communication, travel, business and gastronomy, among others. The project will develop an online portal to serve as a platform for learning activities, including classes with teachers, exams and forums to exchange teaching experiences. The education and training ministry, authorised by the government, is already running a website to teach Vietnamese to overseas Vietnamese at tiengvietonline.com.vn. In 2015, the overseas Vietnamese community consisted of roughly 4.5 million people spread across 109 countries and territories, Deputy Foreign Minister and Chairman of the State Committee on Overseas Vietnamese Affairs Vũ Hồng Nam said. - VNS |
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Article 8
Is 6.7 percent GDP growth rate a must for Vietnam in 2016? Two more international institutions have lowered their predicted GDP growth rate for Vietnam in 2016, showing less optimism about Vietnam’s economy. However, analysts say a lower GDP growth rate won’t be a concern.  Credit Suisse has lowered the predicted GDP growth rate for Vietnam from 6.3 percent to 6 percent. In a similar move, Business Monitor International (BMI) has lowered the growth rate from 6.3 percent to 5.9 percent. The World Bank (WB) earlier this month updated the new predicted GDP growth rate at 6.2 percent, or 0.4 percent lower than the figure released in January.
The institutions all cited the world economy which is believed to have negative impact on Vietnam to explain their decisions. Brexit, for example, is expected to affect Vietnam’s exports to the EU and the UK. The minus growth rate of Vietnam’s agriculture in the first two quarters of the year has also caused concerns. The National Finance Supervision Council, in the latest report, though affirming the upward tendency in GDP growth in the long term, also noted that economic growth has slowed down in the short term since the third quarter of 2015. Vo Tri Thanh, former deputy head of CIEM, said it would be difficult to reach a 6.7 percent GDP growth rate. Thanh said though the 5.52 percent growth rate in the first half of 2016 compared with the same period of last year waschigher than in 2012-2014, this shows a slowdown, compared with the 6.32 percent growth rate in the first half of 2015. Thanh said that economic growth would still be led by the processing, manufacturing and export sectors and foreign invested enterprises (FIEs). However, the negative growth rate of the agriculture sector and the weak recovery of the world’s economy, especially after Brexit, would make it difficult to obtain the 6.7 percent growth rate. However, Thanh does not think this is a big concern. “The 6.7 percent growth rate might be unattainable, but 6.2-6.3 percent is within reach. And this must not be seen as a worrying sign,” he said. Nguyen Bich Lam, general director of the General Statistics Office, is optimistic about Vietnam’s economy in long term. “In 2017-2020, if difficulties are settled, FTAs take effect and the economy recovers, this would create a momentum for the economic growth in the whole development period." Bizlive |
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Article 7
Social News 15/7 HCM City to start paper-free communications  The HCM City People’s Committee has instructed all city agencies and city-owned enterprises to replace communication by paper with text messages and emails. The HCM City People’s Committee has instructed all city agencies and city-owned enterprises to replace communication by paper with text messages and emails. Tran Vinh Tuyen, deputy chairman of the committee, has signed an order instructing all city agencies to stop sending paper letters from July 20. The move is aimed at enhancing the use of information technology and foster e-governance to make the government apparatus work more efficiently and transparently. More than 2,200 paper letters that are sent every year would now be replaced by SMSs and emails, saving more than 390 million VND (17,500 USD) according to the People’s Committee Office. The committee also said it would no longer accept documents submitted without electronic files attached. Five fishermen on sunk fishing boat return to land Five fishermen on the QNg 90479 fishing boat that sank after being chased by Chinese boats arrived in Sa Ky port, the central province of Quang Ngai, on July 13 on the QNg 95001 TS fishing boat of captain Huynh Van Khanh. The fishermen then came to the Sa Ky border gate station to report on the incident on July 9. Captain Vo Van Luu of the QNg 90479 said when fishing at the Hoang Sa (Paracel) Islands, his boat was chased by two Chinese boats coded 46102 and 56103. At around 2pm on July 9, the Vietnamese boat crashed into submerged rocks and water began to flow in. The Chinese boats also drove after the boat of captain Huynh Van Khanh which was fishing nearby. Only at 6:20 PM that day, when most of the boat had gone under water except for the fore end, the fishermen were rescued by Khanh’s boat. Captain Khanh said all local fishing boats kept contact with each other at sea, and when Luu’s boat was sunk, his boat immediately rushed to rescue from five nautical miles away. Later on July 13, the Fishermen Support Fund’s Quang Ngai office presented 40 million VND (1,762 USD) to the owner of the sunk boat and two million VND (88 USD) to each crew member.- Vietnamese engineers successfully invent cold Plasma ray in medical Vietnam Plasma Technology Joint Stock Company yesterday held a meeting to introduce Vietnamese-made cold Plasma equipment used in medical and cosmetic surgery. The medical equipment was certified by the Ministry of Health. It will be used in hospitals across the country. The success of cold Plasma ray invention makes Vietnam to be one of the first nation to apply cold plasma ray in medical treatment and cosmetic surgery. The equipment was made by Dr. Do Hoang Tung and Dr. Nguyen The Anh from the Vietnam Academy of Science and Technology from 2011 to 2015. Dr. Do Hoang Tung said that Cold plasma was able to inactivate the virus on the tested surfaces, suggesting that this method could be used for continuous disinfection of contaminated surfaces, and wound healing. Additionally, low temperature plasma is exceptionally suited for treating sensitive targets, including living cells and tissues, without causing thermal damage. Specially, Plasma MED equipment has been used in the Medicine Faculty of the National University, the National Hospital of Burns, the central Hospital Hue, th Medicine University and Cho Ray Hospital in Ho Chi Minh City. Test results are assessed the equipment to be safe and effective in treatment for wound. Hanoi: Over $7 mln to boost prenatal screening The capital city of Hanoi will invest over 160 billion VND, or 7.18 million USD, in an initiative to boost the early detection of birth defects in the city between 2016 and 2020. The project will be carried out across 30 districts and 584 communes and towns of the city in an attempt to provide at least 80 percent of local expectant women with prenatal screenings and at least 85 percent of infants with newborn screenings. About half of the newborns will also receive screenings for congenital heart defects. The screening enables the early detection and intervention of birth defects and disorders or genetic abnormalities during pregnancy and after birth in order to reduce the number of people with disabilities and improve the city’s population quality. The funding will be used to raise public awareness of the importance of prenatal and newborn screenings. The city aims to have at least 90 percent of local pregnant women access professional advices on the issue. In addition, Hanoi will provide further training for its medical officials and staff and purchase more equipment for prenatal and newborn screenings, particularly in the Hanoi Obstetrics & Gynecology Hospital. It will also provide hearing screenings for babies aged 0-60 months and Thalassemia tests for junior and senior high school students in disadvantaged districts. The Nam Hai Makes Travel + Leisure’s ‘Top 100’ for First Time As The Nam Hai gets set to toast its 10th anniversary in December, Vietnam’s premier beach resort is celebrating a first: inclusion on Travel + Leisure magazine’s list of ‘The 100 Best Hotels in the World.’ The sole Vietnamese property to make the list came in at No. 51 while also finishing sixth among the ‘Best Resort Hotels in Asia’ and second among the ‘Best Resort Hotels in Southeast Asia’ in the publication’s annual World’s Best Awards reader survey. Only 137 Pillars House, a boutique hotel in Chiang Mai, Thailand, finished higher in the ‘Best Resort Hotels in Southeast Asia’ category. The margin was less than half a point (96.00 to 95.63). This achievement speaks volumes to the kind of team we have here,” said Anthony Gill, The Nam Hai’s general manager since 2013. “I feel lucky to work with people that are genuinely driven to make the guest experience at The Nam Hai better each day. They are exemplary.” More than 200,000 readers of the world's highest circulating travel magazine determined the World’s Best Awards rankings, the cover story of the August issue since 1996. This year’s edition hits newsstands Saturday, July 16. Since opening in December 2006, The Nam Hai has set the benchmark by which all other resorts in Vietnam are measured. The 100-villa property’s first major award came in 2008, when Travel + Leisure’s Design Awards panel tabbed it 'World's Best Resort.' It has also been hailed by Condé Nast Traveler, CNN Travel, Luxury Travel, Cigar Aficionado and many other esteemed overseas media outlets. Travel + Leisure’s World’s Best Awards rankings are based on readers’ ratings for rooms/facilities, location, service, restaurants/food and value. The 2016 survey was open at www.tlworldsbest.com from Nov. 2, 2015, to Feb. 29, 2016. Scholarships awarded to needy students As many as 350 scholarships have been presented to poor students with good performances in their study as part of an annual programme “Sharing the Dream.” The scholarships worth 1.4 billion VND (608,000 USD) were given to students in Ho Chi Minh City and the southern provinces of Binh Duong, Dong Nai, Binh Phuoc, Ba Ria –Vung Tau, Tay Ninh, and central coastal province of Binh Thuan. The ceremony was held in Ho Chi Minh City by the youth unions in the southeast region and Tuoi Tre (Youth) newspaper in collaboration with Thailand’s SCG group. In the past ten years, the “Sharing the Dream” presented 3,801 scholarships worth nearly 19 billion VND (900,000 USD) to needy students nationwide. SCG has also given scholarships each valued at 3-5 million VND (130-215 USD) to economics and engineering students who used to receive the “Sharing the dream” scholarships and passed their university examinations with distinction. Chinese fishing boat warned for entering Vietnamese waters A Chinese fishing boat was given warnings and chased out of Vietnamese waters after it was found operating near an island off the central province of Quang Tri, local border defense forces said on July 12. The Border Defense Command of Quang Tri Province said that the border defense post on Con Co Island had warned and driven away a Chinese fishing vessel found operating near the island, well within Vietnam’s territorial waters. Located 27 kilometers off Vietnam’s central coast, Con Co Island is one of the country's smallest island districts with a population of fewer than 1,000. After receiving notifications from local fishermen, the border defense force of Con Co set off in pursuit of the intruding Chinese boat before catching up with the vessel an hour later at coordinates 17o10’N 107o11’E, around three nautical miles north of the island. The Chinese fishing boat number 13177 was captained by 53-year-old Li Ka Feng, who was made to sign and have his fingerprints printed on the corresponding coordinates on the map. The force also gave warnings and confiscated 15 compartments of fish, five fishing systems, and chased the ship out of Vietnamese waters. Rare gibbon saved from hunters in central Vietnam A baby gibbon from a rare species was rescued from hunters in central Vietnam on July 13 and is now in good care. Forest rangers in Quang Ngai Province said they have received the 7-month-old gibbon of the northern white-cheeked species (Nomascus leucogenys) from a commune official, who paid for the animal to save it. The rangers will send it to a national park in the north for proper care before releasing it back to nature. The white-cheeked gibbon is now found only in Vietnam and Laos, living in primary evergreen forest. Its number is threatened by poaching and habitat loss. Women’s Museum - one of the best attractions in Vietnam Vietnam Women’s Museum has been awarded ‘One of the best attractions in Vietnam’ by the Vietnam National Tourism Administration (VNAT) at the 17th Vietnam Tourism Awards recently held in Hanoi. This is the second time the museum has won the noble title in recognition of its constant efforts to improve the quality of services. The museum’s exhibitions were launched last year to introduce works of art as well as objects to domestic and foreign visitors. Additionally, a complete audioguide system has been placed into operation to better serve visitors. 57 object storytelling topics in three languages- Vietnamese, English and French – provide insights into the culture and history of Vietnam. For its renovation, the museum continued to be listed among 25 top museums in Asia by tripAdvisor. Vietnam upbeat heading into Davis Cup with Thailand The Vietnam squad is confident of getting the better of regional rivals Thailand at their Davis Cup Asia/Oceania Zone Group 2 clash this weekend at the National Tennis Development Centre in Muang Thong Thani. The Vietnam team is comprised of Ly Hoang Nam, Pham Minh Tuan, Nguyen Hoang Thien and Nguyen Dac Tien while they face off with Thai players Pruchya Isarow, Kittiphong Wachiramanowong, Sonchat and Sanchai Ratiwatana. First up, on July 15, top tennis player Hoang Nam squares off with Thai rival Wachiramanowong, currently ranked world No 933, in the men’s single event. Next up teammate Hoang Thien meets world No 094 Isarow. In the double’s event, Minh Tuan/ Dac Tien play Thai twin Ratiwatana/ Ratiwatana, currently rank world No 112. The winning team advances to compete against the winner of the match-up between the Philippines and Chinese Taipei. The two finalists also seal berths to play in Group I next year. Fusion Suites Saigon to hold music contest The newly-established Fusion Suites Saigon Hotel in downtown HCMC will launch a music competition to find versatile and talented artists to perform at the hotel’s Zen Rooftoop bar. The Zen Live Muzik contest is open to Vietnamese and expats in Vietnam, who are 18 to 65 years old and able to perform in a variety of genres including acoustic, jazz, R&B and rock. Marco Van Aggele, Serenity Holding’s CEO, said Zen Live Muzik would offer an opportunity for those loving modern music to freely show their talent. “While there is a lack of a music playground in Saigon, Zen Live Muzik will be a great experience for music lovers and performers.” First prize will be a one-year performance contract with Fusion Suites Saigon while runner-ups can perform at the launch event with a host of other prizes up for grabs. Zen Live Muzik application form and competition guidelines are now available on the Fusion Suites Saigon website at www.fusionsuitessaigon.com. Deadline for registration is 11 p.m. on July 15. The audition date is July 16. Winners of Zen Live Muzik 2016 will be announced on July 22 at the grand opening of Fusion Suites Saigon. For further information, contact Ms. Van Trang via email van.trang@serenity-holding.com or phone 0938 753 303 - 0909 006 809. Fusion Suites Saigon is managed by Serenity Holding and located at 3-5 Suong Nguyet Anh Street, District 1, HCMC. New four-star hotel goes up in Hoi An Thien Minh Group has opened the four-star EMM Hotel Hoi An in the World Heritage-listed town of Hoi An in Quang Nam Province. The inauguration of EMM Hotel Hoi An is followed by the successful launch in late 2013 of the EMM Hotel Saigon. The company plans to develop this hotel brand in major cities such as Hanoi and HCMC, as well as major travel destinations of Vietnam. By end-2017, the brand is expected to be present in Hue, Mai Chau and Hanoi. Located at 187 Ly Thuong Kiet Street in the heart of the town, EMM Hotel Hoi An has 92 rooms, a restaurant, a bar and an open-air pool. According to a statement of the hotel, “EM” in Vietnamese means mellow, calm, serene and friendly while “M” stands for Modern, which means humanity, creativity, attractiveness and freshness. On the opening occasion, the hotel offers a special price, starting from VND945,000++ per night to customers, agencies and direct booking guests. EMM Hotel Hoi An is run by TMGH, a unit of Thien Minh Group (TMG). Founded in 1994 in Vietnam, TMG is active in three main business areas, namely travel (providing tourist services and transport through Buffalo Tours, and seaplane services with Hai Au Aviation); hospitality (owned and managed by Victoria Hotels & Resorts & EMM Hotels & Resorts ); and online travel services for Vietnamese guests with iVIVU.com. HCM City crack down on smuggling HCM City plans to step up enforcement against smuggling, trade fraud and counterfeit goods to better cope with the rising number of violations that have been occurring this year. “Smuggling has risen since last year despite city authorities’ efforts,” Trần Vĩnh Tuyến, vice chairman of the People’s Committee, said at a meeting held last week in the city. With the increase in smuggling cases and trade fraud, Tuyến said violators engaged in smuggling, trade fraud and counterfeit goods would be strictly punished. Tuyến said the police, customs and market management officials would work together to fight smuggling via Tân Sơn Nhất International Airport and from the southern provinces of Long An and Tây Ninh to HCM City. Enforcement will also be strengthened against smuggling at bus stations such as Miền Đông (Eastern) Coach Station, Miền Tây (Western) Coach Station and An Sương Coach Station. Waterways, where a number of smuggling cases have occurred, especially on Thầy Cai Canal, will be monitored as well. Policies and regulations will be established to closely supervise imports for re-export, as well as business activities related to food safety. Tuyến said it was vital to raise public awareness about the harmful effects of smuggling, trade fraud and counterfeit goods. Though violations had risen this year, the city had made some achievements against illegal activities in the first six months, especially during the Tết (Lunar New Year) holiday, when complex smuggling and trade fraud cases took place due to a higher consumption level of food and other products. In the first six months, the city uncovered more than 13,800 illegal cases involving smuggling, trade fraud and fake goods, and collected more than VNĐ2.47 trillion (US$110.78 million) for the state. Products worth more than 20 billion ($897,000) were seized, and 49 cases were prosecuted. Violations mainly occurred in border areas and via air and sea routes. The main smuggled goods were drugs, firecrackers, explosives, oil and gas, wild animals and their products, wine, tobacco, food, pharmaceutical products, cosmetics and electronics. Organisations and individuals have also been found illegally using chemicals and additives in production, cultivation and animal husbandry, sparking public health concerns. One of the most noteworthy cases was the seizure of 1.84kg of cocaine at HCM City’s Tân Sơn Nhất International Airport a few months ago. Diphtheria kills 3 in southern Bình Phước Province An outbreak of diphtheria in the past week in the central province of Bình Phước has resulted in three deaths, a health official said. All three patients died after being hospitalised for several days, causing great concern among local residents. Quách Ái Đức, deputy director of the province’s Health Department, said test results showed they were positive for the disease. The deceased, aged 12, 18 and 24, had been admitted to Bình Phứoc General Hospital, presenting symptoms of high fever, cough and breathing difficulty. Some 34 cases of diphtheria have been reported since late June in Thuận Lợi Commune’s Thuận Tiến Village and Thuận Phú Commune’s Thuận Phú 3 Village, Đức said. He said the other 31 patients were receiving treatment at health facilities in Bình Phước Province and HCM City. To prevent the disease from spreading to other areas, the General Department of Preventive Medicine has suggested the provincial Health Department should closely monitor the situation and take sample tests from those exposed to the disease and from high-risk groups to detect new cases of infection. At the same time, the Health Department was asked to take steps to promptly manage the outbreak, ensuring that people contracting the disease were isolated and receiving treatment in order to minimise the number of infections. The department was also ordered to investigate all cases of infection in the community and at the treatment facility, submitting daily reports on each case and the results of preventive measures. The Preventive Medicine Department also required the provincial Health Department to work with the Pasteur Institute in Hồ Chí Minh City to organise a vaccination drive at the site of the outbreak, compiling statistics on the number of people who have not been vaccinated against diphtheria. This is necessary to ensure that all children are inoculated against the disease, especially those living in mountainous and remote areas. The province has also been urged to strengthen advocacy activities focused on risk and prevention to ensure people become more proactive in preventing the disease. According to the General Department of Preventive Medicine, diphtheria is an infection caused by the bacterium Corynebacterium diphtheria. It affects the mucous membranes of the throat and nose. The disease is common in children but can occur in adults with impaired immunity. Although the disease is easily transmitted from one person to another, diphtheria can be prevented through vaccination. Previously, the disease was quite common in most provinces across the country. However, since the inclusion of the diphtheria vaccine in expanded immunisation programmes, the disease has been under control, and only a few cases have been recorded among those who were not vaccinated against the disease, usually because they lived in remote areas where immunisation rates are low. Vietnam, RoK cooperate in labour sanitation A Memorandum of Understanding (MoU) on labour sanitation and occupational disease prevention was signed on July 13 in Hanoi by the Ministry of Health (MoH) and the Republic of Korea (RoK)’s Occupational Safety and Health Agency (KOSHA). Under the MoU, the KOSHA will support Vietnam’s health sector in terms of technique and consultancy to strengthen the capacity of caring for and improving labourers’ health. The RoK’s agency will also help improve training and consultancy on labour hygiene through delegation exchanges, as well as provide information and documents on occupational disease diagnosis and labour environment monitoring. The MoH suggested the KOSHA helps improve the ability of the National Institute of Occupational and Environmental Health. Speaking at the signing ceremony, Deputy Minister of Health Nguyen Thanh Long said the MoU is the first step in opening up cooperation opportunities in labour sanitation and occupational disease prevention. The 13th National Assembly approved the Labour Safety and Sanitation Law in June, 2015. The law took effect on July 1. Forum highlights new social insurance policies New regulations of the revised Law on Social Insurance and international experiences in reforming social issuance policy were the focus of a dialogue forum in Hanoi on July 13. Representatives from the Department of Social Insurance under the Ministry of Labour, Invalids and Social Affairs (MoLISA) and Vietnam Social Insurance updated information related to the e xpansion of social insurance coverage . Accordingly, part-time staff in communes, wards and townships, and citizens that work abroad under contract will have to participate in compulsory social insurance from January 1, 2016. From January 1, 2018, persons working under labour contracts with a term of between 1 month and 3 months; and employees who are foreigners working in Vietnam will also be required to join compulsory social insurance. Other regulations on increasing the premium of social insurance and criminalisation of violations concerning social insurance regulations were also highlighted at the event. Celine Peyron Bista from ILO’s office in Asia-Pacific said the remarkable outcome of the expansion of social insurance coverage in Vietnam is a valuable experience for other ASEAN member nations. She proposed several measures to create balance between the adequacy and sustainability of the pension system. Participants shared that the changed calculation of social insurance premiums will cause difficulties for many businesses. According to MoLISA Deputy Minister Pham Minh Huan, the ministry has directed relevant agencies to examine regulations on labour in the Criminal Code 2015, aiming to avoid criminalising enterprises who dodge social insurance participation. Action Aid Vietnam funds sustainable livelihoods in Soc Trang Action Aid International Vietnam has provided Long Phu district, in the southern province of Soc Trang with 18 billion VND in funding over the past decade under a development support programme. The programme, which has been transferred back to local authorities, focuses on developing sustainable livelihood models, enhancing gender equality and women rights, improving children’s learning and living conditions as well as authorities’ accountability; offering training on disaster prevention and climate change, and HIV/AIDS prevention. Under the programme, as many as 23,500 people have been trained in cultivation and breeding techniques, agriculture and livelihood models. They were also educated about issues regarding poverty and the right to have access to land and natural resources, contributing to reducing the rate of poor households. Additionally, 11,000 people and communal officials have been given insight into the State law, grassroots democracy regulations and joined dialogues on public services and accountability to promote local socio-economic development. Nearly 3,000 officials, especially those in the villages’ disaster mitigation committees, have been able to analyse vulnerability, thereby actively designing community-based disaster mitigation and climate change adaptation schemes. Vu Minh Duc, head of the programme’s office, expressed his hope that experience and models developed over the process will continue spreading to other localities, contributing to sustainable poverty reduction. Ca Mau keen on forest development The southernmost province of Ca Mau is taking active efforts to plant mangrove forests on targeted land to adapt to climate change. The locality plans to plant between 10,000 – 15,000 hectares of forests by 2020, costing an estimated 20 billion VND (900,000 USD). The figure includes 5,000 hectares of coastal preventive mangrove forests and some 9,000 – 10,000 hectares of commercial forests. In 2016 alone, 1,000 hectares of new preventive forests will be developed. To that end, communication work has been promoted to raise the awareness of the significance of afforestation among the community. Afforestation quotas have been allocated to all leaders of relevant bodies while incentives have been offered to encourage local farmers’ involvement in planting and managing forests. Ca Mau has the 67,000-hectare U Minh Ha cajuput forest and 35,000 hectares of preventive forests stretching along its 254 km coastline. However, the province loses around 100 hectares of coastal forest each year due to erosion. The loss of forest also leads to further erosion of land. In addition, the forest coverage in Ca Mau has also decreased considerably since the 1990s as local people cut down coastal mangroves for shrimp farming. There are more than 3,000 households living in the province’s mangroves forests. Over 1,200 of them are in unsafe conditions, especially during the rainy and stormy season. Vietnam is one of the five countries in the world most vulnerable to climate change and its rice granary, the Mekong Delta, is among the three hardest hit deltas on the globe. Young Vietnamese show leadership potential Most Vietnamese youth show a high level of leadership potential, according to a global potential survey conducted by the UNESCO Centre for Culture and Education. Survey results were based on 5,400 young Vietnamese aged 16-35, who completed an online assessment which provided a score for each of four capabilities: leader, manager, professional and doer. Thirty-six per cent of the participants were assessed as having high leadership potential, with ability to “inspire and guide others”. Around one-quarter of participants were classified as professionals “interested in research and seeking innovation in their professional fields”. Another one-quarter were found to be “doers who become directly involved and implement tasks”. However, only 14 per cent of the surveyed youth showed future potential to be managers. The assessments were based on personal motivation, interests and behaviour. As part of the annual competition, Today’s Voice Contest, the survey aimed to help young people better understand their capabilities and choose suitable careers. Exhibition of artworks honours miners About 100 artworks, portraying the lives and work of miners, are on display at Exhibition House, 16 Ngô Quyền Street. The artworks comprise paintings, statues and sketches by 38 artists from Hà Nội, the northern city of Hải Phòng and the northern coastal Quảng Ninh Province. Different materials such as pastel, oil on canvas, acrylic and coal have been used to create the artworks. The exhibition includes the latest works of artists from coal-mining areas such as Nam Mẫu, Hòn Gai and Mạo Khê in Quảng Ninh Province. Paintings by veteran artists are also a highlight of the exhibition. Nguyễn Việt Hải, 82, is displaying about 32 of his sketches. “I met miners and befriended them. But it was difficult to convince them to model for the paintings,” Hải said. He is a pioneering artist who went on field trips to Quảng Ninh Province about 50 years ago to record the daily life of miners. He has also painted beautiful landscapes portraying the mining areas during his career. The exhibition shows the changes and developments in Quảng Ninh, a hub of coal-mining activity in Việt Nam. The art exhibition, which ends on July 24, is being organised by the Việt Nam Association of Fine Arts to mark the 80th traditional day of miners that falls on November 12. The display will move to Quảng Ninh Province in November. Symposium highlights importance of diet to diabetics Diabetics find it difficult to change their eating habits or strictly follow the diets ordered by doctor, and this detracts from the effective of treatment, according to the Việt Nam Association of Diabetes and Endocrinology. Speaking at a symposium on structured diet plans with diabetes-specific nutrition held last Saturday by the association in co-operation with dairy company Abbott, Prof Thái Hồng Quang, the association chairman, said nutrition and exercise are the first remedy prescribed for diabetics. Improper nutrition causes a lowering of blood sugar level, he said. Dr Nguyễn Thị Bích Đào, the association’s deputy chairwoman, said patients often prefer taking medicine to listening doctors’ talks about nutrition. According to a 2013 Nielsen Diabetes U&A report, 91 percent of people with diabetes in Việt Nam claimed that changing their eating habits was a real challenge, and only 21 percent of them took diabetes-specific nutrition. Đào said diabetes is a modern epidemic, with the country seeing an increase of 211 per cent in incidence from 10 years ago. Dr Osama Hamdy, a diabetician from the US, said it is crucial for people with diabetes to have a plan that includes a balanced diet, medical treatment and regular exercise. The American Diabetes Association recommends that all people living with diabetes should make nutrition therapy a part of their treatment plan. Bangkok underground party comes to HCM City Giant Swing, one of Bangkok’s longest-running underground party nights, will take place at The Observatory on Saturday. The music night will feature DJ mAsa niwayama, co-founder of Giant Swing, who has played music at some of the most popular underground clubs in Japan. It will also include his partner, DJ NKChan, who has regularly performed in Japan. The event will start at 9pm at 5 Nguyễn Tất Thành Street in District 4. Entrance fee is free before 10pm, and VNĐ150,000 (US$7) after 10 pm. Concert highlights dancehall music A Dancehall Explosion concert featuring dancehall music, a genre of Jamaican popular music that originated in the late 1970s, will be held at The Cube Bar Saigon on July 15. The event will feature DJs and artists from the event’s organiser, Saigon Dub Station, including Skulz, Sonar Lee, Morgan, King Cardo and Buba. The show will begin at 10pm at 31B Lý Tự Trọng Street in District 1. Entrance is VNĐ50,000 (US$2.2). Plan International supports children in Quang Tri Plan International on July 12 signed an agreement with the provincial government of Quang Tri that allows the global organization to run new programs in the province to improve the lives of needy children. The agreement signed between Plan International Vietnam and the Quang Tri Provincial People’s Committee provides for US$3.5 million of funding for programs to be given effect in the districts of Dakrong and Huong Hoa during the 2017-2021 timeframe. “We are very proud to announce that we can now build on all the work we have done in Quang Tri so far and start implementing new programmes in the province,” said Plan International representatives. “Plan International is committed to working with government, non-governmental and civil society organisations to implement child-centred community development programmes.” Plan’s programs will include child focused disaster risk reduction and early childhood care and development. The organization will also be looking at starting a water, sanitation and hygiene program in the dry zones of the province. Plan’s work will especially focus on marginalized girls and children with disabilities. 1.9 tons of stimulant leaves khat from Africa seized in HCM City Ho Chi Minh City customs in June seized nearly 1.9 tons of plant-based drug khat disguised as tea or herbs in parcels from Africa. Two delivery companies and more than 10 individuals are now suspected of deliberately smuggling the stimulant leaves. The leaves were found in 129 packages from Kenya and Ethiopia either handled by the companies or with the individuals named as the recipients. Khat is a shrub grown in East Africa and the Arabian Peninsula and its leaves are chewed for their stimulant effects, thanks to cathinone and cathine among the ingredients. Another ton of the leaves were seized at Tan Son Nhat International Airport in the city earlier this year. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNE |
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BUSINESS IN BRIEF 15/7 Da Nang seeks investment from Singapore  Ship-building industry is a high-tech investment field that call for investment from foreign investors. The central city promises to create smooth conditions and top priorities for Singapore's investors in the fields of high-tech, information technology, renewable energy and high quality education. Vice Chairman of the city's people's committee Ho Ky Minh said in a seminar on ‘Investment Opportunities in Da Nang' in Singapore on July 12. Minh said the city will make a strong commitment in building available infrastructure, administrative reforms, preferential treatment and skilled labour, for wooing investors from Singapore. He said the city will boost transparency and publicity in offering preferential favours, labour cost and investment fee for investors. Ricky Tan, CEO of Kinderworld Education Group, said Da Nang is a potential destination for foreign investors in Viet Nam, and the group expected to expand investment in Da Nang in the coming year. The group, the biggest Singaporean investor in the education and training sector in Viet Nam, has invested US$40 million in the construction and operation of 15 training facilities in Ha Noi, Da Nang, Ho Chi Minh City and Binh Duong. It established the Pegasus International UniCollege (PIU) in Da Nang in 2014, along with its KinderWorld International Kindergarten (KIK) and the Singapore International School (SIS) to provide a world class educational system from pre-school to university levels in the city. The head of the representative office of Foreign Trade Bank of Viet Nam, Vietcombank, Vu Thi Bich Thu confirmed that the bank in co-operation with Da Nang city is looking to create favourable financial support for Singaporean investors launching investment projects in Da Nang. According to the city's investment promotion centre, Singapore has been the biggest investor in Da Nang with 22 projects worth $782 million. Da Nang has attracted 410 Foreign Direct Investment (FDI) project with total $3.7 billion. Businesses of foreign-invested projects earned a revenue of $766 million in 2015, of which $522 million was export turnover, creating over 48,000 jobs. Last year, the city also organised investment promotion events in Japan and Germany. As scheduled, the city, in co-operation with Vietnamese Businesses Union in Europe, will host a Europe Business Forum this August. Vietnam-Mongolia trade links to be facilitated: PM Leaders of the Vietnamese and Mongolian Governments agreed to create the most favorable conditions for the two countries’ enterprises to further expand trade and investment links in the time ahead, said Prime Minister Nguyen Xuan Phuc. Addressing the Vietnam-Mongolia Business Forum on July 14 during his ongoing official visit to Mongolia, the Vietnamese leader stressed that the bilateral political ties have fruitfully developed in recent times but their trade bonds do not match with the existing potential. He briefed Mongolian investors and businesses on the huge potential of the Vietnamese market, saying that Vietnam wishes to invest in mining, technology, tourism, infrastructure development and some other fields in Mongolia. Representatives from the two sides’ businesses highlighted the great potential for stronger cooperation between the two nations’ companies, and expressed their interest about a series of cooperation fields, including agriculture, food, tourism, construction, mining, textiles and garments. They revealed that the Vietnam-Mongolia Joint Business Council was set up to push trade and investment links, especially in hi-tech agriculture and farm products. They suggested the two Governments consider opening a direct air route between the two nations to facilitate import-export activities and multi-faceted cooperation among their firms. Vietnam hopes to export farm produce, food, aquatic products, fruit and vegetables and electronics, the PM Phuc noted. Meanwhile, Mongolian investors said they are willing to cooperate with Vietnamese counterparts to ship meat to Vietnam. Mentioning difficulties facing the two countries’ enterprises in transporting commodities caused by geographic distance, the PM said that the two governments will discuss the matter. Vietnam is home to 21,000 foreign investors from over 100 countries and territories, with a total investment of 300 billion USD. The country’s GDP stands at over 200 billion USD. Vietnam has joined 13 free trade agreements (FTAs), especially new-generation FTAs. It is now a key member of ASEAN, and also one of the 12 founding members of the Trans-Pacific Partnership (TPP) – the world’s largest trade deal, which will be signed in the near future. Mongolia has been accelerating restructuring its business system. Mongolian companies are also active in seeking to boost economic and trade links with nations worldwide, including Vietnam – a potential market in many fields. At present, two-way bilateral trade between the two nations hits about 175 million USD. Vietnam mainly exports phones, fruit and vegetables and consumer products to Mongolia, while importing metals and materials for the garment and footwear sectors from the East Asian nation. HCM City to boost economic ties with San Francisco Vice Chairman of the Ho Chi Minh City People’s Committee Tran Vinh Tuyen has met with Mayor of San Francisco to discuss the programme for economic cooperation by 2020 between the two cities. During the meeting in San Francisco on July 13, the two sides agreed to together boost their bilateral relations, contributing to further developing the strategic partnership between Vietnam and the US, the Sai Gon Giai Phong (Liberated Saigon) newspaper reported. Tuyen, accompanied by a delegation of the committee and businesses from Ho Chi Minh City, joined a number of trade and investment promotion events, met with overseas Vietnamese enterprises and called for more foreign investments into Ho Chi Minh City. The vice chairman also attended the opening ceremony of Semicon West 2016, an annual event for global microelectronics industry in San Francisco on the same day. The trade show, which takes place from July 12-14 (local time), features more than 700 leading firms from the US, Canada, Australia, Japan, Germany, Singapore and so on with new products for microelectronics design and manufacturing on display. Among the exhibited products are those manufactured at Saigon Hi-tech Park in District 9, Ho Chi Minh City. The show expects to welcome about 18,000 visitors this year.- More stocks join Club 100 More stocks with outstanding growth rates joined 'Club 100' (stock valued from VND100,000 each on the bourses), along with the gain of the local market. As of July 13, the VN-Index reached its nine-year high of 675.12 points, while several shares also saw major gains. Before 2016, seven shares of Coteccons Construction Joint Stock Company (CTD), Binh Minh Plastic Joint-Stock Company (BMP), Viet Nam Dairy Products Joint Stock Company (VNM), and Vinacafé Bienhoa Joint Stock Company (VCF), besides West Coach Station Joint Stock Company (WCS), Noi Bai Cargo Terminal Service Joint Stock Company (NCT) and Danang Airports Services Joint Stock Company (MAS) had joined Club 100. This year, the club has seen more new members. Another six shares of Traphaco Joint Stock Company (TRA), CAV, National Seed Joint Stock Company (NSC) as well as Son La Sugar JSC (SLS), Phu Tai Joint Stock Company (PTB) and Mobile World Investment Corporation (MWG) have also entered the club. Son La Sugar JSC, made the most impressive growth with a 157 per cent rise from VND49,500 to VND127,000, along with the growth of sugar stocks in the first half, thanks to the thriving business that benefited from the El Nino phenomenon and recovering sugar prices. The National Seed Joint Stock Company, which is involved in the agricultural sector, has been one of the few listed companies posting stable growth for many years. Even though the national agricultural sector faced difficulties last year, NSC kept growing, while multinational corporations in the industry were affected. Ending at VND113,000 each on HoSE on July 14, NSC has risen 17.71 per cent since last year and 663 per cent since it was listed on Hose in 2008. Based in Ha Noi, NSC is now expanding into the Mekong Delta market with the new rice seeds that promise high productivity and better export performance. This year, NSC plans to earn VND1.27 trillion in revenue, an increase of 2.27 per cent, and pre-tax profit of VND200 billion, up 27.3 per cent. Vietcombank Securities Company experts said with such well-planned development, NSC would easily achieve its profit and revenue targets this year. Two other stocks with more than 100 per cent growth were Phu Tai Joint Stock Company (PTB) and Viet Nam Electric Cable Corporation (CAV). PTB, particularly, has posted a sharp 221 per cent growth over last year, reaching VND135,000 each. The firm, involved in stone extraction and wood products, is one of the listed timber enterprises with the highest revenue growth and profit margins in 2016. Meanwhile, CAV shares of the Vietnam Electric Cable Corporation, which produces all kinds of wires and cables in Viet Nam for both local and export markets, ended on July 14 at VND104,000. CAV has paid at least 30 per cent dividend in cash to shareholders, corresponding to a dividend yield of 5.8 per cent. This year CAV aims to earn VND6 trillion in revenue and VND195.6 billion in profits, corresponding to a growth of 5.6 per cent in sales and 21.3 per cent in profits over 2015. Its growth so far has been of 200 per cent higher than 2015. On the new list, Traphaco Joint Stock Company (TRA) ended at VND114,000 and Mobile World Investment Corporation (MWG) ended at VND143,000 on July 14. Shoes & leather exhibition attracts 500 businesses As many as 500 shoe and leather producers and suppliers from 27 countries are showing their latest technologies and products at the 18th International Shoes & Leather Exhibition Vietnam 2016 that opened at the Saigon Exhibition and Convention Centre in Ho Chi Minh City on July 13. This year, total exhibition space has been expanded to 12,000 square meters to host pavilions from various countries, including Argentina, Brazil, China, Colombia, France, Italia, the Republic of Korea and the US. Major products displayed at the two-day event include machines to produce shoes and tan leather, shoes and shoe accessories, fashionable and interior leather, materials, and leather products. The premier and most influential annual event of its kind in Vietnam, which expects 10,000 visitors, is a chance for businesses to access the most updated technologies and material supply sources, promote their products and seek partners. Hong Kong insurer inks deal with ABBANK FWD Group and An Binh Commercial Joint Stock Bank (ABBANK) on July 14 signed a 15-year agreement for an exclusive bancassurance partnership. FWD will become ABBANK's bancassurance partner in Viet Nam, with the exclusive right to distribute its life insurance and saving products to the bank's customers. Huynh Thanh Phong, FWD Group chief executive officer, said: "As one of the country's fastest growing banks, ABBANK shares our aim to bring a new, customer-led and digital approach to financial services." Cu Anh Tuan, ABBANK's CEO, said bacassurance has great potential in Viet Nam since it currently accounts for only around 3 per cent of sales compared to more than 50 per cent in other Asian markets. Anantharaman Sridharan, FWD Group representative, said, "FWD has officially entered the Vietnamese insurance industry, with the completion of our acquisition of Great Eastern Life Vietnam. "We see the Viet Nam market as a huge opportunity, with the life insurance segment growing rapidly, similarly in the banking landscape." The partnership will leverage FWD's regional expertise and digital technology and ABBANK's knowledge of the local market and its distribution network. Headquartered in Hong Kong, FWD is the insurance business arm of investment group Pacific Century Group, offering life and medical insurance, employee benefits and general insurance. ABBANK has 146 transaction sites in 29 provinces and cities, and over 608,100 individual customers and 20,600 corporate customers. Treasury offloads VND5.2 trillion in government bonds The State Treasury offloaded VND5.2 trillion (US$232 million) from VND6 trillion in government bonds on July 13, Ha Noi Stock Exchange (HNX), the auction organiser, said. HNX said, although the Treasury offered only VND2 trillion in five-year bonds, 18 buyers had registered for more than VND9.6 trillion of the bonds. After the auction, they bought all the 5-year bonds with a coupon rate of 6.10 per cent per annum. The Treasury later sold another VND600 billion in five-year bonds in an extra session, with the same coupon rate. Similarly, during the auction, the Treasury sold all the 15-year bonds, worth a total of VND1 trillion, offered at a coupon rate of 7.65 per cent per annum. Then, it sold another VND300 billion to meet the increasing demand, with the same coupon rate. Of the total VND2 trillion in seven-year bonds offered, the Treasury sold bonds worth VND1.3 trillion at a coupon rate of 6.62 per cent per annum. None of the 10-year bonds totaling VND1 trillion were bought at the auction, HNX said. Since the beginning of 2016, the Treasury has successfully sold VND197 trillion in government bonds through HNX auctions, the bourse said. 14,000 Kia cars sold in first half Kia has become the second best-selling brand in the Vietnamese market, after selling 14,000 cars in the first half of 2016, a 56 per cent growth over last year. The national sales figure made a modest contribution to the overall figure of 1.5 million Kia cars being sold globally in the first six months of this year. In June alone, 2,200 Kia cars were sold in Viet Nam, marking the ninth month in a row when the sales volume exceeded 2,000 vehicles. More than 100,000 Kia models have been sold in the Vietnamese market since Kia Motors and the local Truong Hai Automobile JSC (Thaco) signed a co-operation agreement in 2007. Kia Motors has introduced a new luxury model, Kia Quoris, in the Vietnamese market, marking its ninth model in Viet Nam. In May, Kia Motors awarded Thaco with the Best Global Partner title. According to Kia Motors, Viet Nam has always been its primary market in the Southeast Asian region and Asia in general, and the company would continue to introduce its latest car models under its global brand development strategy, featuring luxury designs, high-tech equipment and safety and protection protocols. Quang Nam develops border trade with Lao province The central province of Quang Nam is pushing cooperation with Laos’s southeastern province of Sekong to develop border trade towards the highest economic efficiency. Quang Nam has invested in building the Nam Giang border economic zone and improving the transport system and monitoring stations at the Vietnam-Laos shared borderline. The locality has also implemented the Vietnam – Laos border trade agreement and the Prime Minister’s Decision No.52/2015/QD-TTg issued in October 2015 on the management of trade activities with shared border countries. It also built specific programmes to attract investment from businesses into the border areas, facilitate goods exchange and encourage trade activities. Apart from supporting enterprises to increase trade promotion and direct exports with Laos , Quang Nam also works to preserve the special cooperative ties with Sekong to jointly deal with any issues affecting their economic and trade development. The province also stepped up inspection of goods quality and food safety and called on businesses to invest in trade projects, technical economic infrastructure, and markets in border communes and districts. Chairman of the provincial People’s Committee Huynh Khanh Toan said Quang Nam is coordinating with Sekong to ramp up investment in building infrastructure to serve border trade development, while directing the People’s Committees at border districts to protect forests, natural resources, support underprivileged people and upgrade rural roads. Local authorities proposed the Government increase the annual investment capital to 50 billion VND (2.25 million USD) to develop border gates, especially building border markets in Nam Giang and Tay Giang districts, and improve infrastructure at Nam Giang border economic zone. Director of the provincial Department of Industry and Trade Nguyen Quang Thu said authorities have suggested Lao partners pay more attention to developing the transport system at Tay Giang border gate to pave the way for the bilateral goods exchanges. In the first six months of 2016, the import-export turnover via Nam Giang border gate reached nearly 6.5 million USD. Quang Nam mainly exported machinery, equipment and construction material, while importing timber and electricity. ACB bond issue raises $90 million The Asia Commercial Bank (ACB) has raised VND2 trillion ($89.7 million) from issuing 20,000 bonds according to a statement it sent to the Ho Chi Minh City Stock Exchange (HSX) on July 11. There were 17,150 unsecured bonds sold directly to seven institutional investors while 2,850 were sold to 27 individual investors. No foreign investors participated. ACB’s bonds have a five year and one day term, with a first year interest rate of 8.5 per cent and the rate for second to fifth years being the reference rate of Vietcombank and Agribank plus 2 per cent. With the additional VND1.96 trillion ($87.9 million), after deducting the issue’s expenses, the Ho Chi Minh City-headquartered ACB will bolster both its main and supplementary capital source. Its liquidity risk will also be minimized, according to its statement. According to its prospectus issued on June 2, ACB will use the capital gained for mid and long-term lending. There will be three disbursement periods (June, September and November 2016) with a total of 22 enterprises receiving loans. They include the PetroVietnam General Service Joint Stock Corporation (Petrosetco), with VND360 billion ($16.1 million), the Northern Power Corporation (NPC) with VND350 billion ($15.7 million), Electricity of Vietnam’s Hanoi Power Corporation (EVN Hanoi) with VND250 billion ($11.2 million), the Saigon Water Corporation (Sawaco) with VND150 billion ($6.7 million), and the T.V.P Steel Joint Stock Company (T.V.P Steel) with VND100 billion ($4.5 million), among others. ACB’s original plan was to issue bonds in three different periods, with VND800 billion ($35.9 million) issued in June, VND600 billion ($26.9 million) in September, and VND600 billion ($26.9 million) in November 2016. After the issue the bank will owe a total of VND208 trillion ($9.3 billion), with short and mid and long-term loans of VND128 trillion ($5.7 billion) and VND80 trillion ($3.6 billion), respectively, up VND6.6 trillion ($296 million) compared to the same period last year. ACB’s charter capital was VND9.4 trillion ($421.6 million) as at June 30, according to the statement. The bank expects 2016 pre-tax profit of VND1.5 trillion ($67.3 million), up 14 per cent compared to last year. Profit in the first quarter was VND400 billion ($18.2 million), ACB’s CEO Do Minh Toan told the annual shareholders meeting on April 8. Viet Long Securities buys 24% stake in Tuong An The Viet Long Securities Investment Fund Management Corporation (VLFM) has purchased 4.55 million shares in the Tuong An Vegetable Oil Company (TAC), equal to a 24 per cent stake, from the Vegetable Oils Industry Corporation (Vocarimex). The sale was completed on July 4 for VND278 billion ($12.6 million), according to the Ho Chi Minh City Stock Exchange (HSX). Vocarimex’s holding in TAC is now 27 per cent. The CEO of VLFM is Mr. Nguyen Mien Tien. His brother, Mr. Nguyen Mien Tuan, is Deputy Chairman of the Board at Viet Dragon Securities Corporation (VDSC). Mr. Tran Le Nguyen, CEO of the KIDO Group Corporation, is also Chairman of VDSC’s Board. KIDO previously confirmed with VET that it would increase its stake in Vocarimex to 51 per cent in the second half of this year. The Singaporean-based Wilmar International announced on July 5 that it would buy 45 per cent of Bunge Ltd’s oilseed crushing factory. Bunge is Vietnam’s largest producer of soybean oil, the world’s largest palm oil processor, and one of the largest soybean buyers, and aims to strengthen its presence in Vietnam’s cooking oil market. Calofic, in which Wilmar holds a 76 per cent stake, is the leader in Vietnam’s cooking oil market with a 37 per cent market share. It reported total 2015 revenue of VND11 trillion ($493 million), three times higher than its nearest competitor, TAC. Calofic has won the trust of a wide range of customers with its famous brands, including Neptune, Simply and Meizan. With KIDO aiming to cooperate with Vocarimex and with Wilmar’s strategic deal, the country’s cooking market is set to see fierce competition. TAC is the second largest cooking oil company of Vietnam, with a 22 per cent market share. It reported total 2015 revenue of VND3.6 trillion ($161.3 million). Other than TAC, Vocarimex also has three vegetable oil joint ventures: Golden Hope-Nha Be Edible Oils Company the North Oils & Fats Industries Company (Nortalic), and Calofic. Vietnam’s cooking oil market now has 40 companies producing and selling cooking oil products, 70 per cent of which are palm oil, 23 per cent soy bean oil, and 7 per cent vegetable oil, according to data from the Ministry of Industry and Trade. Savills Vietnam opens full service office in Danang Savills, Vietnam’s largest real estate services provider, will officially open its first full office in Danang, marking the company’s dedication to growing its business in the property market of Vietnam’s central region. Savills Vietnam opens its first full office in Danang, marking a milestone for the company as it continues to provide quality real estate services The new office will offer the full platform of real estate services already provided in Hanoi and Ho Chi Minh City, including research, evaluation, and development advisory, commercial and residential property management, office and retail agency services, tenant representation, investment advisory and brokerage, as well as residential project marketing and general leasing. Savills has worked for clients in Danang since 1995 and has been an active presence in recent years, being closely associated with some of central Vietnam’s most well-known resorts and residential developments. The sizeable existing project marketing team already present in Danang will be complemented by a professional management team and office premises. Matthew Powell, director of Savills Hanoi, commented, “The real estate market in Danang is developing rapidly, so we feel it’s very important to be able to service our clients fully and to be able to offer our full platform of services to the city. Being one of the most exciting and progressive cities in Vietnam, we are very pleased to open our first regional office, outside of Hanoi and Ho Chi Minh City.” In the high-profile residential market in Danang, Savills has represented many of central Vietnam’s resort developers, leading the sales efforts for The Ocean Resort (Ocean Villas, The Ocean Suites, Dunes Residences, The Point and Ocean Estates), Marble Mountain Residences (at Hyatt Regency Danang), Naman Residences, Luxury Apartment at Sheraton Four Points, Azura condominiums, and Harmony Tower. Minh Nguyen teams up with Japanese firm to supply Samsung Minh Nguyen Supporting Industries Joint Stock Company joins forces with foreign enterprises to meet Samsung’s stringent requirements for suppliers. Minh Nguyen, one of the first-tier Vietnamese suppliers of Samsung Electronics’ Ho Chi Minh City CE Complex in Saigon Hi-tech Park (SHTP), last week inked an official strategic partnership agreement with Yamazaki Mazak. Accordingly, Yamazaki Mazak will be the strategic supplier of high-tech machinery centres for the first phase of Phuoc Thanh research, manufacturing and application complex developed by Minh Nguyen at SHTP. Yamazaki Mazak will also support and advise Minh Nguyen in terms of investment strategy, as well as the operation and renovation of high-tech machinery centres for their future investment projects. In addition to providing 100 per cent newly built machines, the Japanese firm would also provide international standard training programmes to Minh Nguyen’s operations and maintenance engineers. According to Chau Ba Long, Minh Nguyen’s CEO, this partnership will help improve the firm’s technological capabilities, apply new international standards, and create high-value products and services for clients, especially Samsung. Vice president of Yamazaki Mazak Akimitsu Nagae said that, “Yamazaki Mazak Corporation highly appreciates Minh Nguyen’s vision and ambition. With our experience, we can quickly help Minh Nguyen improve their technological capabilities and establish themselves as a market leader in Vietnam.” Yamazaki Mazak is a leading international manufacturer of machinery centres from Japan. Founded in 1919, the corporation currently operates a network of 10 production facilities and over 100 supporting bases around the world. PVN told to grow by restructuring The Vietnam National Oil and Gas Group (PVN) should promote further restructuring of its enterprise and products to increase competition and efficiency in operations, Deputy Prime Minister Trinh Dinh Dung said. He was speaking at PVN’s conference on tasks in the second half of this year. At the conference held in Hanoi on July 12, the group said it accomplished all targets for the first half this year. Its industrial production value gained a year-on-year growth of 9.1 percent and crude oil exploitation volume achieved increase of 7.7 percent to 569,000 tonnes against its target. The group reduced production cost of electric, fertiliser, petrol and oil products by 20 percent against its plan. During the first half of this year, PVN promoted the equitisation process in its member companies, including PVPower, PVOil, BSR, PTSC and Petrosetco. The second half of this year is forecast to still have difficulties in production and business, including the impact from the crude oil price that has not yet seen a strong recovery, Brexit and the difficult conditions for development of domestic and international oil and gas projects. Deputy Prime Minister Trinh Dinh Dung highly appreciated the PVN’s production and business results in the first half of this year. However, the group still had many problems, including low efficiency in some projects and even suffering losses in some other projects, he said. The group also expanded its investment activities to non-core businesses. The Deputy Prime Minister said its main tasks until year-end would include restructuring the enterprise, products and investment activities of the group and its member companies to increase efficiency in production and business, and competitiveness, as well as ensure the national energy security. The group should review all its projects to improve efficiency of the projects and focus its investment on products and sectors that need priority, he said. For restructuring the enterprise, the group should focus on equitisation, restructuring of corporate management, and revamping its technology to increase quality and ability of management as well as labour productivity. Dung also said the PVN should anticipate market risks to have reasonable investment and production plans. At the conference, PVN predicted that the average crude oil price would be between 45 USD and 50 USD per barrel and the group could exploit 12.6 million tonnes of crude oil and 4.5 billion cubic metres of gas. It would achieve its targets in production and business, it added. Measures discussed to develop enterprises in Mekong Delta Various solutions to the development of enterprises in the Mekong Delta were discussed at the Mekong Delta Business Forum, which was held in Hau Giang province on July 13. Le Hung Dung, Deputy Head of the Steering Committee for the Southwestern Region, said most enterprises in the region are of small or medium scale with weak competitiveness, so they need support from the central and local governments via administrative reform with a one-stop mechanism. According to Vo Tan Thanh, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), the forum, as part of the 9th Mekong Delta Economic Cooperation Forum (MDEC), is expected to open up opportunities for Mekong Delta businesses to forge links among them and with other counterparts at home and aboard. It offers a chance for central and local agencies to study local enterprises’ difficulties and listen to their ideas and proposals, thus taking more practical and timely measures to support them, he added. The Mekong Delta now boasts 60,000 operational enterprises, making up 12 percent of the country’s total number. In the first six months of this year, the region had close to 4,000 newly-registered enterprises with a combined capital of nearly 40,000 billion VND (1.76 billion USD), up 9 percent and 28 percent, respectively, year-on-year. Shrimp exports to UK plunge slightly Shrimp exports to UK since the beginning of June has dropped slightly to just US$6.8 million, down 27.7% against the same period last year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). In the UK market, Vietnam shrimps have to compete fiercely with those from India in terms of prices. In recent years, India has increased its market shares in the EU markets, especially the UK. Shrimp exports to the UK in June are estimated to dip slightly due to fluctuation in exchange rates. Thus, shrimp exports began going down in June after enjoying a quite high growth early this year. The VASEP reported that in the first five months of this year, shrimp exports to the UK rose 21.6% to US$44 million to meet the market’s high demand for warmwater shrimps as supplies of coldwater shrimps decreased and their prices increased. This is the first time in the last three years that the export revenue of warmwater shrimp is higher than that of coldwater shrimp. Danang kicks off Israel-backed startup course for local entrepreneurs A course has been launched in the central Vietnamese city of Danang to provide local entrepreneurs a better understanding on incubator and startup. The course, jointly organized by the Danang Startup Network Coordinating Council and the Embassy of Israel in Vietnam, was kicked off on July 11. With guest speakers from the Israeli Agency for International Development Cooperation and the MASHAV Carmel Training Center (MCTC), it focuses on such topics as business model development, the spirit of innovation, and a number of management approaches to accelerate innovation. Facebook CEO Mark Zuckerberg (R) talks about the challenges for a startup business at the Global Entrepreneurship Summit 2016 at Stanford University in Palo Alto on June 24, 2016 According to Lee Singer, deputy Israeli Ambassador to Vietnam, this is the first-ever course on startup organized by Israeli experts in the Southeast Asian country. The course is expected to be held in other major cities, with the aim of helping young entrepreneurs to have a better understanding on startup and human resources development, she said. “We hope to contribute to the formation of the startup ecosystem in Danang,” she added. Nikken, Thien Tan groups develop Ly Son island infrastructure Thien Tan Group has signed a consultancy agreement with Nikken Sekkei Civil Engineering LTD from Japan for infrastructure development of Ly Son Island District in central Quang Ngai province. Consultancy and planning totally cost VND17 billion, of which VND10 billion comes from Bank for Investment and Development of Vietnam (BIDV) loans and VND7 billion is provided by Thien Tan Group. Le Viet Chu, Secretary of Quang Ngai provincial Party Committee said the province appreciated Thien Tan Group’s support and cooperation with Nikken to build and develop Ly Son island district. A Nikken representative pledged to closely coordinate with Thien Tan Group to build Ly Son infrastructure with modern utilities. Mekong Enterprise Fund III invests in Wrap & Roll Mekong Enterprise Fund III - managed by Mekong Capital, the private equity fund manager - has invested $6.9 million in the Wrap and Roll Restaurant Joint Stock Company. “The founders and management team of Wrap & Roll have done an extraordinary job at establishing Wrap & Roll as a proven concept with urban consumers in Vietnam and Singapore,” said Mr. Chad Ovel, Partner of Mekong Capital. “They have successfully created Wrap & Roll as a modern way to enjoy authentic and healthy Vietnamese food.” “In Wrap & Roll we see an unusually strong commitment to continuously developing their management systems and the capabilities of their management team,” he went on. “We believe that with Mekong Capital’s previous experience investing in and adding value to the Golden Gate Group, combined with Wrap & Roll’s ten years of operating in the market, we will have a successful story to tell and to be proud of locally and internationally.” The $112-million Mekong Enterprise Fund III, which was launched in June 2016, is a private equity fund focusing on consumer-driven businesses such as retail, restaurants, consumer products, and consumer services in Vietnam. The Fund particularly focuses on companies that are committed to building up strong management teams. “We found Mekong Capital to be a credible partner to help us to grow sustainably,” said Ms. Nguyen Thi Kim Oanh, CEO and Chairwoman of Wrap & Roll. “It not only funds the company but also supports it with strategic consultancy in many management fields, such as human resources, restructuring, management practices and corporate finance. These are the key factors that make a company grow sustainably in a changing and fiercely competitive market and in expanding our chain internationally.” Mr. Ovel said that Wrap & Roll has been built with the application of best practices and systematic processes seen in large international restaurant chains, which provide a foundation for the company to continue to open new restaurants at a rapid rate. The Wrap & Roll Joint Stock Company was established in 2006. As at June 2016 it had eleven Wrap & Roll restaurants in Hanoi and Ho Chi Minh City and four franchise locations in Singapore. Several more restaurants will soon open in both Hanoi and Ho Chi Minh City. The company also plans to launch a new concept restaurant chain in 2016 to address a different segment of the market in Vietnam. Vietnam's economy to face more challenges HSBC's outlook for Vietnam in third quarter shows that the country has recovered from slower growth but still has to overcome many challenges. In the third-quarter outlook, HSBC stated that agriculture and aquaculture still face difficulties caused by the El Nino extreme weather phenomenon. Even the main sectors only saw slight increases but this shows the country has escaped the most difficult period. Services and manufacturing industries both have positive growth. Export companies will continue to face challenges as world demand is likely to decrease, however, domestic demand may strongly increase in late 2016. Controlled growth will help improve the trade balance after the Ministry of Industry and Trade reported last year that Vietnam's total trade deficit stood at USD3.6bn. In the mean time, Vietnam has continued to receive strong foreign direct investment which will bolster foreign exchange reserves. In the first six months, USD7.3bn of FDI was disbursed and FDI is predicted to continue to play an important role in the export industry and help Vietnam's shipping industry achieve strong result even if global demand slows down. The country's inflation rate is still under control, ranging from 1.6% to 2%. According to HSBC, the headline inflation will reach 5% in middle of 2017. In order to counter this, the State Bank of Vietnam may increase interest rates to 5.5% in the third quarter. Decreasing fuel prices mean state budget deficit will not recover anytime soon and may account for 6.6% of GDP this year. As a result, it will push the public debt to GDP ratio to 65%, the threshold international safety standard for public debt. HSBC suggested that government should increase revenues and restrain spending. Slow but sustainable economic growth is recommended. HSBC maintains its Vietnam's growth prediction of 6.3% in 2016 and 6.6% for 2017, compared to the Vietnamese government's GDP growth target of 6.7% for this year. Promoting national brands through local products gets discussed A forum on the promotion of national brands via local products was held in Hanoi on July 13 with the goal of encouraging businesses to participate in the national brand programme. Speaking at the forum, Deputy Minister of Industry and Trade Do Thang Hai said building and developing the country’s overall competitiveness, including regional brands, is one of the important factors during the integration and development process. Do Kim Lang, Deputy Head of the Trade Promotion Agency, said the forum provided a chance for localities to share their experience in building regional brands, while managerial agencies, experts and businesses could discuss issues related to building brands for businesses, products and regions. According to Nguyen Quang Minh, Vice Chairman of Hung Yen Province People’s Committee, besides building brands, the protection of brands is of equal importance. At the forum, experts said in order to have agriproduct brands able to compete domestically and globally, it is necessary to synchronously implement many solutions, including perfecting mechanisms, policies and the legal system to build and protect brands. They also stressed the need for a strategy for developing sustainable agriproducts based on the relationship between agriproducts and the human and social environment. Binh Phuoc high-tech farming centre opens The Binh Phuoc high-tech agriculture centre began operation in Tan Thanh commune, Dong Xoai town on July 13. Spanning an area of 50 hectares, the centre was formally a breeding facility for agricultural plants. Approximately 100 billion VND (4.5 million USD) has been invested to in converting it to a high-tech centre. Located 8km from the centre of Dong Xoai town, the establishment enjoys convenient transport to neighboring southern provinces. The centre is working with experts to develop farming systems for vegetables, beans and fruit that are safe for consumers and have higher productivity. By the end of 2016, it will transfer 10,000 cashew saplings to Bu Gia Map district. Cashew is a prioritised plant in Binh Phuoc. The province has 134,000 hectares of cashew which produce 190,000 tonnes of nuts annually, with an average productivity of 1.4 tonnes per hectare. Businesses urged to register trademarks Registration is imperative if businesses want to protect their trademarks, delegates told a seminar in HCM City on Wednesday. Nguyen Thi Hoai Thanh of the National Office of Intellectual Property of Viet Nam (NOIP Vietnam) said trademarks are signs that serve the specific and primary purpose of identifying the goods and services of a producer. They also help build trust in companies and their reputation, and play an important role in marketing and advertising, she said, adding that because a registered trademark is a form of intellectual property, businesses can license or assign it to others or restrict others from using it. Vuong Duc Tuan of NOIP Vietnam's HCM City office, said with the ongoing integration, the demand to register Vietnamese trade marks abroad and foreign trade marks in Viet Nam has steadily increased. There are two ways for Vietnamese firms to register their trademark abroad - directly in a country or through the Madrid system of the World Intellectual Property Organization. The latter offers people the possibility of having their trademarks protected in several countries by submitting an application directly to their own trademark office, he said. In the past Vietnamese firms like Trung Nguyen Coffee spent a lot of time and money to protect their trademarks that had been appropriated by local and foreign firms, he said. Therefore, it is vital for businesses, especially producers, to understand the importance of protecting their trademarks, he said. Thanh said: "The protection of a trademark is territorial. This means that the rights of a trademark are enforceable only in the countries where [it] is registered. Therefore, they must register their trademarks in markets they want to penetrate." Once a trademark is registered, the protection will last 10 years, and businesses can renew. Viet Nam as well as many ASEAN countries have adopted the first-to-file system, Thanh said. So businesses should research trademarks before filing to avoid conflicts, she said. Van Tuyen, head of Nutifood's legal department, said registration to protect trademarks abroad is not only complicated but also costly. Businesses often do not know how to register in foreign countries or the duties and responsibilities of trademark owners, meaning they could easily lose their ownership rights, he said. Vietnamese agencies should provide businesses with more information about intellectual property and the trademark application process in other countries, he said. The seminar was organised by noip Vietnam and the HCM City Intellectual Property Association. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR |
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Convenience stores become more popular A recent survey by Nielsen, a market survey firm, found that with the increasingly faster pace of life and smaller scale of households, Vietnamese nowadays attach much importance to ‘convenience’ when choosing shops.  Nearly six out of every 10 Vietnamese buyers said that they choose the shops because they are located in advantageous positions. Meanwhile, nearly five out of every 10 buyers would go to the shops with good design and displays which allow them to easily select products. Roberto Butragueño from Nielsen Vietnam commented that retailers need to consider what the roles their stores would play in their omnichannel strategy. According to the HCMC Industry and Trade Department, the number of Circle K shops owned by Vong Tron Do Company has reached 150, while there are 70 Family Marts owned by Tien Loi Gia Dinh Vietnam, 98 B’s Marts belonging to B’s Mart Company Ltd and 111 Shop & Gos belonging to Cua Hieu & Suc Song JSC.
Analysts have noted a big change with convenience stores recently in which the stores tend to develop into ‘hybrid’ shops which aim to both provide diversified goods and serve as fast food cafes. Circle K proves to be faster than its rivals in expanding the network. About 2-3 shops are opened in every residential quarter and each of them is just 500 meters from each other. In Ward 11 of district 6 in HCMC, for example, there are three Circle Ks, including two on Binh Phu street and one on Cho Lon street. The retail chain has changed its shop identity with new signboards similar to that in the US. Explaining the rapid increase in the number of shops just, Tony Yang, director of Circle K Vietnam, said Circle K Vietnam has been developed under the franchise contract with the US Circle K. After the restructure in early 2015, Circle K has been focusing on 4F service (fresh, friendly, fast and full). From the shops which only sell consumer goods under the mode of convenience store, Circle K now provides many different services, including fast food (processing food on the spot to the customers’ orders), drinks with its private brands and additional amenities such as seats and wi-fi. Meanwhile, Vingroup, which has been developing its retail chains since 2010, reportedly opens two convenience stores (Vinmart+) each day. With 650 Vinmart+s opened by May, it has become the largest convenience store chain in Vietnam. Tri Thuc Tre |
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Vietnamese PM officiates at AEBF
ULAN BATOR – Prime Minister Nguyễn Xuân Phúc joined world leaders at the 15th Asia-Europe Business Forum (AEBF) in Mongolia’s capital Ulan Bator yesterday, asking for high resolve to promote Asia-Europe co-operation and integration. The forum, themed “Connectivity for Inclusive Growth”, was among the events in the run up to the two-day 11th Asia-Europe Meeting (ASEM) Summit started today. It drew 600 representatives of leading businesses across the two continents, including Việt Nam’s Vietnam Airlines Corporation, the Việt Nam Oil and Gas Group and the Bank for Investment and Development of Việt Nam (BIDV). As the first leader to give a speech at the AEBF’s closing session, PM Phúc highly valued the forum’s role in enhancing Asia-Europe business partnerships and improving the business climate. He also highlighted enterprises’ significant contributions to the continents’ all-round development and stature. He described businesses as the growth engine of Asian and European economies, stressing their role, especially that of small- and medium-sized enterprises (SMEs), in job creation. The Vietnamese PM called on the participating leaders to help SMEs to integrate and take part in global value chains. He asked Asian and European nations to take the lead in sustainable trade and investment co-operation mechanisms within ASEM to cope with such challenges as poverty that is caused by unfair trade, development gaps between countries and climate change, and to ensure the sustainable development of each member country. He also asked for continued support for partnerships and free trade agreements (FTAs) among countries in Asia and Europe such as the ASEAN Community, the Regional Comprehensive Economic Partnership, and EU – ASEAN and India – ASEAN co-operation. The ASEM member nations are very important partners of Việt Nam during its reforms, development and international integration, Phúc said. “Nineteen out of 25 strategic and comprehensive partners of Việt Nam are ASEM members, accounting for 70 per cent of foreign investment in and foreign trade with Việt Nam. About 80 per cent of international tourists to the country are from ASEM nations,” he said. Việt Nam has signed and is negotiating 16 FTAs, 14 of which are with ASEM partners, he said, adding that it inked an FTA with the Eurasian Economic Union in June 2015. It is working closely with other ASEAN member states to promote a partnership and co-operation agreement with the EU and an FTA between the two blocs. VN-Mongolia trade links Also yesterday, PM Phúc said at the Việt Nam-Mongolia Business Leaders Forum that the Vietnamese and Mongolian Governments had agreed to create the most favourable conditions for the two countries’ enterprises to further expand trade and investment links in the time ahead. Representatives from the two sides’ businesses highlighted the great potential for stronger co-operation, and expressed their interest about a series of co-operation fields, including agriculture, food, tourism, construction, mining, and textiles and garments. They revealed that the Việt Nam-Mongolia Joint Business Council was set up to push trade and investment links, especially in hi-tech agriculture and farm products. They suggested the two Governments consider opening a direct air route between the two countries to facilitate import-export activities and multi-faceted co-operation among their firms. Việt Nam hoped to export farm produce, food, aquatic products, fruit and vegetables, and electronics, Phúc noted. Meanwhile, Mongolian investors said they were willing to co-operate with Vietnamese counterparts to ship meat to Việt Nam. At present, two-way bilateral trade between the two nations hits about US$175 million. Việt Nam mainly exports phones, fruit and vegetables, and consumer products to Mongolia, while importing metals and materials for the garment and footwear sectors from the East Asian nation. Diplomatic meetings Prime Minister Nguyễn Xuân Phúc had separate bilateral meetings with Chinese, Bulgarian and the host-country leaders yesterday on the sidelines of the 11th Asia-Europe Meeting Summit. At the meeting with his Chinese counterpart Li Keqiang, PM Phúc affirmed that Việt Nam consistently pursues its foreign policy of peace, independence, self-reliance, diversification and multilateralisation, and intensive international integration, while attaching importance to developing its friendly neighbourliness and comprehensive co-operation with China. He suggested the two Governments direct their agencies to effectively implement common perceptions and results of the ninth session of the Việt Nam-China Steering Committee on Bilateral Co-operation, maintain regular delegation exchanges to intensify political trust and mutual understanding and to boost practical co-operation. The Vietnamese Government leader urged China to increase imports of Việt Nam’s advantageous goods like agro-forestry-fishery products and welcomed Chinese investors with good capacity to take part in projects which meet Việt Nam’s sustainable development requirements. Regarding the East Sea (South China Sea) issue, Phúc reaffirmed Việt Nam’s welcoming stance on the Arbitral Tribunal’s ruling against China’s claims in the East Sea on Tuesday. He suggested both sides strictly follow common perceptions and agreements reached by their senior leaders, including the agreement on basic principles guiding the settlement of sea-related issues. The two countries should step up negotiations on sea-related issues, while controlling disputes at sea, avoiding complicating the situation, implementing the Declaration on the Conduct of Parties in the East Sea (DOC) comprehensively and effectively, and soon signing a Code of Conduct in the East Sea (COC) in order to maintain peace and stability in the region, he added. Premier Li, in turn, confirmed that China attaches importance to consolidating and developing its neighborly friendship and all-round co-operation with Việt Nam. China is willing to intensify strategic dialogues with Việt Nam, boost win-win co-operation across sectors, follow common perceptions on maritime issues, and control and address disputes properly so as to develop the China-Việt Nam comprehensive strategic co-operative partnership stably and sustainably, he stated. Also on the day, PM Phúc and Bulgarian President Rosen Plevneliev exchanged notes on measures to further foster bilateral relations as well as on regional and international issues of mutual concern. The Vietnamese leader spoke of the establishment of a joint working group within the framework of the Việt Nam-Bulgaria Inter-governmental Committee to define Việt Nam’s potential semi-processed products to be processed into finished items in Bulgaria. PM Phúc congratulated Mongolia’s Speaker of the Parliament Miyegombo Enkhbold on his new appointment as the parliament speaker and thanked the Mongolian people for their valuable support for Việt Nam during its struggle for independence in the past. He proposed the two countries maintain the regular exchange of all-level visits to enhance all-round relations. He also conveyed the invitation of National Assembly Chairwoman Nguyễn Thị Kim Ngân to Miyegombo Enkhbold to visit Việt Nam. For his part, the host said Việt Nam was Mongolia’s key partner in Southeast Asia, hoping that the country would support Mongolia’s bid to become a member of the Asia-Pacific Economic Co-operation (APEC) forum. – VNS |
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BUSINESS IN BRIEF 16/7 Hanoi launches programme to become start-up city  The Department of Information and Communications of Hanoi has worked with several agencies to develop an information technology business incubator scheme to promote start-ups. The Department of Information and Communications of Ha Noi (DIC) has worked with several agencies to develop an information technology business incubator scheme to promote start-ups. The aim is to develop Ha Noi as a start-up city, Director of the DIC Phan Lan Tu said at a briefing held this week to review the performance of the department in the first six months. He said the Government had talked a lot about Viet Nam becoming a start-up country and Ha Noi was eager to become a start-up city. In May this year, the Prime Minister approved a draft project called "National Programme to Support Innovative Startup Ecosystem in Viet Nam by the year 2025" to create a favourable environment to promote and support the development of start-ups with high-growth potential. The project has set the following targets for 2020: complete the main legal framework for a start-up ecosystem; run an online portal for the National Innovative Start-up Ecosystem; support about 800 start-up projects and 200 start-up enterprises, of which 50 will raise follow-on investment from private venture investors or will undergo mergers and acquisitions worth about VND1 trillion (about US$50 million). By 2025, the project is expected to have supported 2,000 start-up projects and 600 start-up enterprises, of which 100 will have raised follow-on investment from private venture investors, or will have undergone mergers and acquisitions worth about VND2 trillion. State funding will only be provided to support start-ups in their earlier stages. Subsequently, support from private investors and organisations will play a vital role in ensuring the efficiency and sustainability of the start-up ecosystem in Viet Nam. Tu said the Ministry of Information and Communications (MIC) would have a start-up scheme in ICT. Currently, DIC is building a start-up project in Ha Noi. The department has also worked with relevant bodies in order to compile a report for the city administration about IT incubator schemes to enhance start-up activities for small- and medium-sized enterprises. In the first six months, the department also finished preparing an information technology development programme for the 2016-20 period and a plan to build a software and digital content park. By the end of June this year, the capital city had issued investment licences to 98 foreign direct investment firms in the field of information and communications technology. Among them, 29 are new projects with a total investment capital of $1.55 billion. In June alone, Ha Noi's total turnover from the export of electronics, PC accessories and peripherals reached $901 million. EU, VN firms discuss tie-up in water, environmental technologies A European delegation comprising 30 business executives from environmental and water technologies companies met their Vietnamese counterparts in HCM City on July 14 to network and explore business opportunities. Speaking at the event, Vo Tan Thanh, director general of the Viet Nam Chamber of Commerce and Industry in HCM City, said the EU has been one of Viet Nam's most important trade partners for the past two decades. Bilateral trade last year was worth US$41.4 billion, a year-on-year increase of 18 per cent. Since European and Vietnamese products and services are more complementary than competitive, the two sides can continue to increase trade, Thanh said. Talking about water and the environment, he said in recent years combating global warming and protecting the environment have been among the most significant concerns the world over, including Viet Nam, he said. Viet Nam has had to deal with many disasters caused by El Nino and climate change, he said. "Therefore, both our Government and people are trying their best to build a green economy and ensure sustainable development." With its strengths in technology, "The EU is a significant partner for us in this." Tom Corrie, deputy head of the co-operation and development section at the EU Delegation to Viet Nam, said it is now an interesting time to do business in Viet Nam. Its economy is very dynamic, growing at 6-7 per cent a year, he said, adding that free trade agreements, in particular the European-Viet Nam FTA, which takes effect in 2018, would create opportunities for businesses in the two countries to work together. The business mission came to HCM City as part of the EU Business Avenues in South East Asia programme (EUBA) to help SMEs tap business opportunities in the fast-growing region. The programme will see 20 targeted week-long business missions to Southeast Asia for up to 1,000 European SMEs in a range of sectors over the next five years, with the inaugural mission focusing on environmental and water technologies visiting Singapore and HCM City. In HCM City, the visitors introduced a broad range of solutions to address the acute problems faced in Asia – the lack of clean water and environmental degradation. Tran Thi Hieu Hanh, deputy director general of the city's Department of External Relations, said HCM City always welcomes and creates favourable conditions for foreign investors to invest and do business in the city. The event was organised by the VCCI's HCM City branch, EUBA and others. Taiwan Excellence 2016 commences in Ha Noi The seventh edition of Taiwan Excellence, a campaign to promote top Taiwanese products in Viet Nam, begins today at Aeon Mall Long Bien in Ha Noi. The three-day event will see the display of products of 43 brands in different fields such as ICT, home appliances, healthcare and fitness, besides transportation that have won the Taiwan Excellence Award. Representative of the Taipei Economic and Cultural Office in Viet Nam Richard R C Shih said the launch of the seventh Taiwan Excellence event in Viet Nam, in which many Taiwanese brands are participating, was attributable to domestic consumers' support to good-quality Taiwanese products across several years. In his speech at the press conference on Thursday, Shih said he hoped Taiwanese products showcased at this year's event would be always chosen by Vietnamese customers, contributing to enhanced relations between Viet Nam and Taiwan. Taiwan Excellence is an international campaign organised by the Bureau of Foreign Trade under the Ministry of Economic Affairs, and implemented by the Taiwan External Trade Development Council, with the purpose of introducing and promoting cutting-edge Taiwanese products. After six successful years, Taiwan Excellence has created a great opportunity for Vietnamese customers to experience top products from outstanding and global Taiwanese brands. Bilateral ties between Viet Nam and Taiwan has developed significantly in the past few years. According to the Foreign Investment Agency, Taiwan is Viet Nam's fourth largest source of foreign direct investment, having invested more than US$1 billion in the first half of this year. The latest addition brings Taiwanese investment in Viet Nam to about $31.87 billion, making Taiwan rank fourth among 116 countries and territories investing in the country. VN is fourth largest squid exporter to Japan Viet Nam has become the fourth largest exporter of squid and octopuses to Japan in the first five months of this year. Statistics of the International Trade Centre showed that Japan imported 3,777 tonnes of squid and octopuses in the period, making Viet Nam the fourth largest exporter of these products to Japan among 23 countries and territories, after China, Morocco and Mauritania. The export prices of squid and octopuses of Viet Nam to Japan averaged US$6.4-$7.06 per kilogram in the period. According to the Viet Nam Seafood Exporters and Processors, Viet Nam's squid and octopus exports to Japan were worth $36.32 million in the first five months of this year, dropping 4.1 per cent year-on-year. Japan was the second largest importer of Viet Nam's squid and octopuses, accounting for 25.5 per cent of the country's exports, following Korea, which saw a drop of 14 per cent in its exports in the period. Central region works to boost industrial development Fifteen provinces and cities in the central and Central Highlands regions spent 32 billion VND (1.4 million USD) altogether on stimulating industrial progress, as heard at a conference held in Quang Ngai on July 15. Of the total, 12 billion VND (540,000 USD) was sourced from the State budget. The funding was channeled into human resources training, technology transfer and development of industrial clusters, among others. Public-run centres for industrial development in these localities reeled in five billion VND (225,000 USD) from consulting services for 211 projects in 2015 and 2.2 billion VND (99,000 USD) from 100 projects in the first half of 2016. Speaking at the conference, Ngo Quang Trung, Head of the Agency for Regional Industry Development under the Ministry of Industry and Trade urged the 15 provinces and cities to strengthen their connection for the overall improvement of the two region moving forwards. Binh Thuan to strictly handle illegal Chinese dragon fruit traders Standing Deputy Secretary of the Party Committee of the central province of Binh Thuan, Huynh Thanh Canh, has directed local departments and agencies to strictly deal with Chinese fruit traders illegally operating under the cover of Vietnamese businesses in the locality. The provincial has set up an interdisciplinary inspection group (or Group 2241) to investigate and deal with Chinese traders who have illegally traded dragon fruit in Binh Thuan since early this year. At the inspection group’s advice, the provincial People’s Committee has imposed fines worth 410 million VND (18,600 USD) on 17 Chinese nationals for entering and working in Vietnam without permission from authorised agencies. The province also fined two Chinese citizens 50 million VND (2,270 USD) for illegally doing business in Vietnam, seizing 12 tonnes of packed dragon fruit. Meanwhile, the provincial Migration Management Office shortened the duration of stay in Vietnam for those committing administrative violations for the first time. Those who repeat the offence will be banned from entering Vietnam for certain duration. Binh Thuan currently has over 26,000 hectares of dragon fruit farms, accounting for 80 percent of the country’s total dragon fruit area and output. According to the provincial People’s Committee, 232 organisations and individuals are involved in trading the fruit in the province. Currently, only about 15-20 percent of the dragon fruit output is sold in the Vietnamese market, while the majority is exported to China via unofficial trade. Chinese firms seek investment in Ha Giang province A business delegation of Yantai city in the Chinese province of Shandong had a working session with officials of Vietnam’s northernmost province of Ha Giang on July 15 to explore investment opportunities there. Chairman of the Ha Giang provincial People’s Committee Nguyen Van Son briefed his guests about local socio-economic development and potential, noting that the mountainous province has a 277km borderline with China and boasts numerous advantages for developing agriculture, forestry, processing and cross-border trade. He pledged the best possible conditions, including favourable mechanisms and policies, for Yantai businesses to invest in Ha Giang. Son said he hopes Yantai firms will invest in such projects as cattle farming in Dong Van stone plateau, building a border trade fair centre near Thanh Thuy International Border Gate, and developing eco-tourism in Bac Quang district. He also suggested Chinese companies apply science and technology in farming rare medicinal orchid species in Hoang Su Phi district. Song Quanfa, Chairman of the Yantai small- and medium-sized enterprises union, highly valued the province’s efforts to improve the local investment climate. In the near future, the Yantai union will make a fact-finding survey to prepare for building an alcohol production factory, an expressway from Ha Giang’s Thanh Thuy border gate to nearby Tuyen Quang province, and a mineral spring tourism site in Vi Xuyen district, he added. Woodchip exports tumble, numerous difficulties remain Woodchip exports in the first five months of 2016 were posted at 248 million USD, compared to 430 million USD during the same period last year, a fall blamed on multiple difficulties. A workshop in Hanoi on July 15 looked into new challenges to Vietnam’s woodchip exports. The Vietnam Timber and Forest Product Association attributed the drop to the recent price nosedive in the global market, along with the decline in demand in China – the world’s biggest woodchip consumer. Meanwhile, Vietnam has levied a tariff rate of 2 percent on woodchip exports to reduce the overseas shipment of this commodity. To Xuan Phuc, a representative of non-profit organisation Forest Trends, said the imposition of this tax rate amid excessive supplies and shrinking demand has added a further complication to the export woodchip processing industry. The 2 percent tax is equivalent to 2.5 – 2.8 USD per tonne. Though it is good to curb woodchip shipments to ensure material supplies for domestic processing, the effectiveness of the tax solution should be thoroughly assessed, he said. Other experts said difficulties facing this industry include not only supply and demand changes but also the uncontrolled and rapid development of the sector. Nguyen Nhu Xuan, Deputy Director General of the Vietnam – Japan Chip Corporation Ltd (Vijachip), suggested authorised agencies delay or lift the export tariff, giving producers enough time to prepare for in-depth processing. However, Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said the State’s consistent viewpoint is to cut down the proportion of woodchip in the export structure. An export tariff on woodchips had been discussed for five years, so the 2 percent rate imposed is not a surprise. The supply and demand relation is the root of the problem. If industry insiders fail to forecast changes, the problem will never be solved, he added. At the workshop, participants said the decline in demand for woodchip seems likely to prolong until late 2016, which will limit woodchip exports this year at around 7 million tonnes in volume and 600 million USD in revenue, equivalent to about 60 percent and 50 percent of last year’s respective figures. Technology vital for boosting agriculture Inventing and applying new technologies has become an urgent task for Vietnamese businesses amid the country's international integration, especially in agriculture, a conference heard in the Cuu Long (Mekong) Delta province of Hau Giang yesterday. "This year, the national technology map for rice seed selection will be completed," Ta Viet Dung, head of the Ministry of Science and Technology's Technology Application and Development Department told the event held to discuss Supporting, Promoting Technology Application and Innovation by Enterprises under the Value Chain. "The map will enable relevant authorities to set up strategy, policy and technology programmes and improve companies' competitiveness." Tran Duy Quy from the department said, "Rice seed selection technology has significantly increased rice capacity from three tonnes per hectare in 1986 to 5.77 tonnes in 2015." Last year 255 rice strains were grown on Viet Nam's 7.66 million hectares of paddies, with 66 of them – including five stick rice varieties and 15 hybrids — accounting for 91 per cent of the area. The annual demand for rice seeds is around 1.2 million tonnes, with almost three-fourths of it from the Mekong Delta. "Now Viet Nam is able to meet 100 per cent of its normal seed demand, and imports US$35 million worth of hybrid seeds," Quy said. Seventeen institutes, universities and enterprises are creating new rice strains. "There are a lot of new rice seeds created by them but only some survive and it is hard to control their quality during cultivation," Quy said. With most rice strains being indigenous, they fetch low prices, he said, pointing out that no Vietnamese seed brands are exported. Vietnamese scientists and researchers need to create rice strains that can resist diseases, drought, flooding and salinity, he said. "Viet Nam only has 38 – 61 per cent of the modern technologies required to create new seeds." He suggested instituting a national programme to develop quality rice seeds by 2035. "The Government should offer incentives to attract private enterprises into research, strengthen copyright protection, set up exhibition areas in various places and assist enterprises with human resource training and international co-operation." In 2015 Viet Nam was one of the leading rice exporters in the world with an 18.3 per cent market share, mainly focusing on cheap varieties and shipping 6.56 million tonnes for $2.68 billion. "There are a lot of seeds in Viet Nam but none would be good enough to produce the best rice," Dao The Anh, deputy head of the Field Crops Research Institute, said. "Most post-harvest technologies are backward and [as a result] production of rice by-products is low. "Technologies required for the whole rice production process, from cultivation and harvesting to preservation, must be boosted to meet the development needs," he said. LAS issues shares, raises capital Lam Thao Fertilizers and Chemicals JSC (LAS) would issue more than 35 million shares as bonus to its existing shareholders soon. After the issuance, LAS' charter capital will increase from VND778 billion to VND 1.13 trillion, corresponding to 112.8 million shares on the HA Noi Stock Exchange Based in the northern province of Phu Tho since 1962, LAS produces fertiliser and other chemical products to serve the northern market. Currently, the State-run Viet Nam National Chemical Group with nearly 70 per cent of the stake is the firm largest shareholder. In 2016, LAS planned a sale of VND4.7 trillion and a profit after tax of VND436 billion as well as a 15 per cent dividend. Vietnam Railways to sell 51% stake in Virasimex Vietnam Railways has offered 51.13 per cent of charter capital in Railway Import - Export and Supply Material Equipment JSC (Virasimex) on July 19, the Ha Noi Stock Exchange said. The stakes or about 1.6 million shares would be auctioned in a whole lot at the starting price of VND27.47 billion or VND17,200 per share, respectively. Investors wishing to participate in the auction have to deposit 30 per cent of the deal or VND8.24 billion. Eighteen investors, which included nine individuals and nine organisations had qualified to participate the auction, HNX said. Based in Ha Noi, Virasimex mostly trained and exported the labour force to the regional and international markets. Telecom firms should focus more on quality: minister Deputy Minister of Information and Communications Pham Hong Hai has said telecom companies should grow substantially, offering better quality and customer care services, instead of just promotions and discount campaigns. Hai was speaking at a meeting on Thursday in Ha Noi, held to review the business performance of Vietnam Mobile Telecom Services (Mobifone) in the first six months. He said Viet Nam had three large local telecom firms, but promotions and discounts remained a major focus of these companies. This was unsustainable development. According to the Vietnam Telecommunications Authority, it is currently studying how to manage promotions more effectively by preventing large network providers from running rampant promotional campaigns. Some even offer promotions below their production costs, leading to unfair competition. A policy to manage new promotions stipulates that if a telecom firm offers too many promotions against its revenue ratio, it will lead to problems affecting its business performance. Hai said network providers should maintain their market shares along with giving positive and sustainable competition, such as by offering quality services and customer care. Too many promotion campaigns resulted in a large volume of new subscribers, while revenues did not rise, Hai said. The information and communications ministry (MIC) has asked network providers to announce their 3G coverage areas, and has asked Mobifone to invest more in telecom infrastructure, Hai said. The announcement of their 3G coverage areas is aimed at promoting healthy competition, just as other countries have done. Therefore, the ministry would soon consider applying it in Viet Nam, he said. The number of newly built base transceiver station (BTS) is an important factor in assessing the ability of network providers in the time to come. Investment in infrastructure development has become more important as the government has agreed to grant 4G licences by the end of the third quarter. Le Nam Tra, CEO of Mobifone, said this was the first year Mobifone, the country's second-largest mobile services operator in terms of subscribers, piloted its 4G and MobiTV services on July 1 by depending on four pillars of cell phone, retail, television and multimedia services. In the first six months, Mobifone earned VND17.4 trillion in revenue, bringing an after-tax profit of 2,336 billion. Technological advances in product value chain discussed A seminar on promoting the application of technological advances in the product value chain took place in the Mekong Delta province of Hau Giang on July 14, which was a major event within the framework of the Mekong Delta – Hau Giang economic cooperation forum 2016. Speaking at the event, deputy head of the Steering Committee for the Southwestern Region Tran Minh Thong suggested the Mekong Delta build a regional farm produce quality monitoring centre, launch new models in choosing varieties, and adopt post-harvest preservation technologies in the value chain of agricultural production, focusing on rice, farmed fish and fruit. Vice Chairman of the provincial People’s Committee Dong Van Thanh said technological adoption is expected to lower costs and meet food safety requirements, towards bringing more Vietnamese products to global markets. Co-hosted by the Ministry of Science and Technology, the Steering Committee for the Southwestern Region and the provincial People’s Committee, the event discussed improving the efficiency of the value chain of rice production in large-scale fields, recommended advanced technologies used in fruit cultivation, suggested connectivity models for the aquaculture value chain, as well as technology transfer for the Mekong Delta.- Seminar on international economic integration held in Tien Giang A seminar to disseminate information on the free trade agreements (FTAs) Vietnam has signed was held on July 14 in the Mekong Delta province of Tien Giang. At the seminar, Deputy Minister of Industry and Trade Tran Quoc Khanh briefed participants on the contents of the Trans-Pacific Partnership (TPP) and the FTA between Vietnam and the European Union (EU), including import-export duties, service and investment, intellectual property protection and e-trade. The deputy minister also mentioned the opportunities and challenges brought by the FTAs. He said those deals will help boost trade between Vietnam and the EU and the TPP participating member nations, adding they will also open up a new chapter in improving economic growth, creating more jobs and raising income, he added. However, Khanh recommended localities update information, grasp international commitments, speed up administrative procedure reform and promote competitiveness. The trade deals will allow Vietnam to boost its Gross Domestic Products (GDP) by 23 billion USD in 2020 and over 33 billion USD in 2025 while the country also expects to add approximately 70 billion USD into its export revenue. Vietnam is likely to be the biggest winner of the TPP as the reduced custom duties will trigger more exports of Vietnamese products, particularly garment & textile, footwear, seafood, farming and forestry products. New-style cooperatives piloted in Mekong Delta The new-style cooperative model will be piloted in the Mekong Delta from 2016 to 2017, an official said at a conference in Hau Giang province on July 14. This is the first phase of a scheme to pilot and replicate the new-style cooperative model in the Mekong River Delta in the period of 2016-2020, according to Nguyen Van Doan, head of the Ministry of Planning and Investment (MoPI)’s Cooperative Department. Priority will be given to consolidating and restructuring the operations of all regional existing cooperatives in line with the Law on Cooperatives 2012, while increasing the numbers of members and their capital contribution. The project also encourages the establishment of cooperatives in rice, fruit and seafood, while offering incentives to cooperatives and cooperative unions involved in agricultural value-chains. The MoPI will propose to the Government to give support to cooperatives that develop under an autonomous financial mechanism. Under the project, training courses will be conducted to build the capacity of cooperative managerial and technical staff. It will strengthen connectivity in agricultural production, expand consumption markets, and develop the infrastructure facilities of cooperatives. Director of the Hau Giang Department of Agriculture and Rural Development Nguyen Van Dong pointed to the significant role of human resources in the efficient operation of new-style cooperatives, saying that they need to lure skilled and young intellectuals in the cooperative management boards. According to Deputy Minister of Agriculture and Rural Development Tran Thanh Nam, the project will bring about a breakthrough in agriculture development in the Mekong Delta, particularly in the fields of rice, fruit and aquatic farming. The project aims to help farmers overcome disadvantages in the market, increase their benefits through a link to the agricultural value-chain, thus improving the socio-economic and cultural living conditions for local farmers, Nam said. The scheme to pilot and replicate the new style cooperative model in the Mekong River Delta in the period of 2016-2020” was approved by the Government in March 2016. Solutions to ensure budget collection plan The tax sector has devised multiple measures to ensure the budget collection target is met in the second half of this year. Accordingly, local taxation departments review and propose to provincial People’s Committees and relevant ministries policies and mechanisms to create a favourable business climate to support the development of enterprises. The agencies will give advice to local authorities on the establishment of a steering committee on boosting and managing the state budget collection. They also target a year-on-year increase of 14-16 percent in budget collection. Other efforts include enhancing forecast and analysis abilities to make timely assessments on factors that may affect the plan, and creating a feasible projection of budget collection based on data on economic situation and collection policies. Weekly exchanges with taxpayers will be organised to address difficulties faced by enterprises, contributing to improving the investment environment. Classification of taxpayers will also be conducted for better management. According to the General Department of Taxation, state budget collection in the first half of this year was estimated at 393.55 trillion VND (about 17.7 billion USD), an increase of 6.3 percent over the same period last year. The amount represents 48.6 percent of the whole year’s estimate. Among the 63 localities across the nation, 45 attained at least 50 percent of the year’s estimate for domestic collection, while 57 exceeded their collection for the same period last year. The shortfalls seen in the other localities mainly stem from increasing numbers of company dissolutions, bankruptcies and halting of operations. Other factors include natural calamities and the plunging price of crude oil. Industry insiders talk Brexit’s effects on Vietnamese wood sector Industry insiders discussed the impacts of Britain’s exit from the European Union (EU) on the Vietnamese wood sector during a workshop in Hanoi on July 14. The event was jointly held by the Vietnam Good and Forestry Product Association (VIFORES), Ho Chi Minh City Fine Arts and Timber Processing Association, Forest Products Association of Binh Dinh (FPA Binh Dinh), and international Forest Trends. According to the VIFORES, Vietnam is one of the three biggest wood exporters to the UK besides Indonesia and Malaysia. The UK is also the largest EU importer of Vietnam’s timber products. In 2015, Vietnam exported wood and timber products worth about 900 million USD to the EU, including 270 million USD to the UK which singly made up 4 percent of the total timber export turnover of Vietnam. Secretary General of the FPA Binh Dinh Tran Huy Le said the UK is the second most important market (after Germany) for wood companies in the central province of Binh Dinh. That the UK left the EU had impacts on businesses’ orders, he said, noting that some customers demanded to cut prices by 5-7 percent while some asked to reduce the number of orders. To Xuan Phuc from Forest Trends said Brexit caused devaluation of the pound, which negatively affects Vietnam’s wood export prices. Additionally, the decreasing demand in house construction in the UK will directly impact on the Vietnamese wood sector, he added. The volume of timber products imported from Vietnam to the market is likely to reduce in the future, he said. The UK has pioneered in implementing the EU Timber Regulation (EUTR) and negotiating the Voluntary Partnership Agreement (VPA) under the Forestry Law Enforcement, Governance and Trade (FLEGT) for countries exporting tropical timber products to the EU, experts said, adding that Brexit does not affect the FLEGT VPA negotiation between Vietnam and the EU. Phuc suggested businesses update information and map out solutions to deal with different market scenarios because there would be changes on tax, exchange rate, customs fees and procedures in the future. According to the Ministry of Industry and Trade’s Department of Import and Export, Vietnam’s goods exports to the UK make up about 2.9 percent of the total export turnover, so Brexit will not affect much on the exports of Vietnam. Alarm for FDI sector in environmental protection The foreign direct investment (FDI) sector, which has significantly contributed to the growth of the Vietnamese economy, has on the other hand posed negative impacts to the nation’s ecosystem with a number of environmental destruction cases, seriously affecting the public health. Some experts hold that the main reason behind the situation is FDI enterprises’ poor observation of regulations on environmental protection in Vietnam. A recent survey by the University of Economy under the Hanoi National University showed that 45% of 150 FDI firms in 2011 did not apply a low-emission production process, while 69% said they would not implement the process if they were not obliged to, and 57.7% took high cost as an excuse. Currently, only 66% out of a total of 289 industrial parks nationwide have a concentrated wastewater treatment station. Especially, up to 75% of industrial parks and 85% of industrial clusters in the Mekong Delta are yet to be equipped with such facility. At the same time, FDI projects in Vietnam, mostly run by Asian investors, have medium technology using large amounts of natural resources and releasing high emissions. According to the Central Institution for Economic Management, as of 2013, only 5% of FDI firms in Vietnam own high technology, while about 80% of them operate medium technology and the remaining percent use out-of-date technology. Between 2011 and 2015, FDI mostly flowed to such areas as apparel, chemicals, electronics, paper and iron with many latent risks of environment pollution. Meanwhile, from 1988 to 2013, only 28 out of 16,000 FDI projects, or 0.2%, were launched on wastewater treatment, with only US$710 million or 0.36% of total registered investment. Some serious environmental incidents have been recorded, changing the ecosystem and affecting economic growth and social security at the sites. Notably, the Vedan company in the southern province of Dong Nai released its untreated wastewater to the Thi Vai River over 14 years, while the Miwon company in the northern province of Phu Tho let 900 cubic meters of wastewater out to the Red River. Most recently, Formosa Ha Tinh’s poisoning wastewater caused mass fish deaths along the country’s central coasts. In order to prevent negative impacts on the environment by the FDI sector, experts held that it is crucial to prioritise projects from developed countries with a good sense of environmental protection, while strengthening the effectiveness of state management over the FDI sector’s environmental conservation. Solutions to ensure budget collection plan The tax sector has devised multiple measures to ensure the budget collection target is met in the second half of this year. Accordingly, local taxation departments review and propose to provincial People’s Committees and relevant ministries policies and mechanisms to create a favourable business climate to support the development of enterprises. The agencies will give advice to local authorities on the establishment of a steering committee on boosting and managing the state budget collection. They also target a year-on-year increase of 14-16 percent in budget collection. Other efforts include enhancing forecast and analysis abilities to make timely assessments on factors that may affect the plan, and creating a feasible projection of budget collection based on data on economic situation and collection policies. Weekly exchanges with taxpayers will be organised to address difficulties faced by enterprises, contributing to improving the investment environment. Classification of taxpayers will also be conducted for better management. According to the General Department of Taxation, state budget collection in the first half of this year was estimated at 393.55 trillion VND (about 17.7 billion USD), an increase of 6.3 percent over the same period last year. The amount represents 48.6 percent of the whole year’s estimate. Among the 63 localities across the nation, 45 attained at least 50 percent of the year’s estimate for domestic collection, while 57 exceeded their collection for the same period last year. The shortfalls seen in the other localities mainly stem from increasing numbers of company dissolutions, bankruptcies and halting of operations. Other factors include natural calamities and the plunging price of crude oil. Opportunities for food and beverage businesses boost trade Both domestic and foreign food and beverage enterprises will have a chance to promote trade and expand business while attending the Vietfood & Beverage and ProPack international exhibition, scheduled for August 10-13 in Ho Chi Minh City. The exhibition will feature 500 booths of 425 new and well-known firms from 20 countries and territories worldwide, including China, Germany, Malaysia, Poland, Taiwan (China), Thailand, the Republic of Korea and Vietnam, said the Vietnam National Trade and Advertising Company (Vinexad). This is also an opportunities for well-known domestic businesses like Habeco, Sabeco, Tan Hiep Phat Group, Vissan and Vifon to consolidate their positions on the market along with introducing their latest products, seeking partners and learning about customers’ demands. This year, domestic manufacturers will bring to the exhibition clean products cultivated and processed in line with environmentally-friendly and non-toxic standards such as organic rice, honey, bird nest and cereals. Highlight of the event will be the display of processed poultry products from the Associations of Poultry Processor and Poultry Trade in Poland and the European Union. The associations’ member businesses will provide consultations on bio-farming methods as well as new methods in food processing and preserving. Business-to-business (B2B) meetings will be organised during the exhibition to connect domestic and foreign poultry businesses. The food and beverage processing industry has great potential in Vietnam. Being a tropical agricultural country, Vietnam has abundant resources – a significant input for the processing industry. A large domestic consumption market with low labour costs coupled with strong equitisation of food enterprises has made the sector full of vitality, according to the organising board. The exhibition was first held in 1996. After 19 exhibitions witnessing significant and rapid changes in the market, from the initial purpose of serving consumers' basic needs, the food and beverage industry has become a sector with considerable market share accounting for 15 percent of the gross domestic product, and it will continue to grow. Hanoi: export revenue hit over 5.2 billion USD in first half Hanoi reeled in more than 5.2 billion USD through exports in the first six months of 2016, up 0.1 percent year-on-year, according to the municipal Department of Industry and Trade. Exports with good growth included garment-textile which brought in 711 million USD, followed by machinery-equipment-component (612 million USD), and means of transport and spare part (396 million USD). Electronic products, footwear and leather goods and handicrafts also posted increases in export revenues. By contrast, computer components and agricultural produce saw lower turnover compared to the equivalent period last year. In June alone, the capital city earned 926 million USD from exports, increasing 3.2 percent from May. Overall, Hanoi has recorded robust economic performance in the first half of 2016, with its gross regional domestic product (GRDP) gaining 7.3 percent. The capital’s agro-fishery sector grew 2.1 percent year-on-year in the period, while the industry and construction sector secured an annual growth of 7.8 percent. LG Innotek says considering building camera module plant in Vietnam The Republic of Korea's LG Innotek Co Ltd said on Wednesday it is considering building a plant in Vietnam to manufacture camera modules, without disclosing further details. The Korea Economic Daily newspaper reported earlier in the day that LG Innotek plans to build a camera module plant in response to demands from smartphone camera module clients like LG Electronics Inc and Apple Inc, citing unnamed sources. LG Innotek said in a regulatory filing that no specifics for a Vietnam plant have been determined. Vega Balls unveils plans for new factory in Quang Ninh Vega Balls Manufacturing Co Ltd, a leading producer of sports balls with production facilities located in Taiwan, Thailand and Vietnam has announced plans to construct a second plant in Vietnam. The new 32,400 square metre facility will be located at the Dong Mai Industrial Park in the northern province of Quang Ninh. No specific details on the estimated cost have been released. It is expected to be placed into operation in early 2017. Cai Mep-Thi Vai port improvement Spurred by numerous complaints of underdeveloped infrastructure, logistics service shortcomings and fierce competition made by foreign joint venture ports in the Cai Mep-Thi Vai port complex in the southern province of Ba Ria-Vung Tau, the Ministry of Transport is now moving forward measures to increase its operational efficiency. At a meeting with the local authorities in early July, Minister of Transport Truong Quang Nghia agreed with proposals from the province’s leaders concerning the addition of some dry port locations, the building of a logistics centre, and the construction of the Bien Hoa-Vung Tau expressway, connecting the Cai Mep-Thi Vai port complex to the southern economic hub and nearby provinces. “Soon the Ministry of Transport (MoT) and the Central Economic Commission of the Communist Party of Vietnam will have a specific working programme with the local authorities before deciding what the most efficient measures to improve the local ports’ competitiveness may be,” Nghia noted. “In addition, we will dredge to increase the channel depth from 14 metres to 15.5 metres in the near future, to facilitate larger vessels.” As the only port complex in Vietnam shipping goods directly to the EU and America, the Cai Mep-Thi Vai port complex has 17 operational terminals. However, “the Cai Mep-Thi Vai port complex is like a beautiful house with no proper entrances,” said Secretary of the Ba Ria-Vung Tau Party Committee Nguyen Hong Linh. “The sooner the Bien Hoa-Vung Tau expressway is developed the more product volume the port complex can receive,” added Nguyen Van Trinh, Chairman of the Ba Ria-Vung Tau People’s Committee, proposing that the MoT invest in the Bien Hoa-Tan Thanh route in the short term and then enlarge to Vung Tau at a later date. For years, underdeveloped infrastructure and logistics service shortcomings have remained the biggest problems facing several joint venture ports, namely SSIT, a joint venture between Vinalines and Carrix/SSA, SP-PSA (a joint venture of Vinalines and Singaporean PSA), and CMIT (a joint venture of Vinalines and Danish company APMT). These ongoing problems have made the Cai Mep-Thi Vai port complex less attractive to transport firms. “It is costly to transport goods from Ho Chi Minh City or the southern province of Binh Duong to Cai Mep-Thi Vai, as the complex does not have yards available for empty containers, forcing enterprises to bring their goods to Cat Lai port in Ho Chi Minh City instead,” said Nguyen Thanh Tam, deputy director of Ho Chi Minh City-based company InterLog. It costs up to VND4.3 million (around $192) to transport goods on a 40-kilometre section from Dong Nai’s Nhon Trach district to Cai Mep-Thi Vai, but only VND3.3 million ($150.6) to bring goods 80 kilometres from Nhon Trach to Cat Lai. In addition, transporting goods to other Asian countries from Cai Mep-Thi Vai takes over ten days, compared to only three days from Cat Lai port in Ho Chi Minh City, leading enterprises to avoid Cai Mep-Thi Vai altogether, he added. Another big concern facing foreign joint venture ports is shortfalls in comprehensive and sustainable port master planning and development. This problem is yet to be solved. According to an official at a joint venture port, the Cai Mep-Thi Vai port complex is moving cargo lower than its design capacity, this is due to competition from ports in Ho Chi Minh City and Binh Duong. The expansions of Phu Huu and Hiep Phuoc ports have caused further difficulties for the joint venture ports in Cai Mep-Thi Vai. After years of trouble attracting cargo, Cai Mep-Thi Vai saw growth of 44 per cent of volume in the first six months of this year, with the number of over 100,000 dead weight tonnage vessels increasing, according to the MoT. It was expected that the volume of goods through this port complex would pass 80 million tonnes by late 2016. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR |
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Social News 16/7 Four people die in road accidents Police from the northern city of Hải Phòng said three people died and a person was badly injured in two car accidents in the locality. A car with an unknown number plate hit a woman who was walking on the sidewalk this morning, causing her death on the spot. The accident occurred on Road 212 which passes through Tiến Thắng Commune. The car left the scene after the accident. Also on the same road, a collision occurred last night between two motorcycles, leaving two people dead and one seriously injured. Initial investigations found that all the deceased were residents from Tiên Lãng District’s Bắc Hưng and Quang Phục communes. Further investigation is underway. In related news, a 16-seat car lost control and crashed into a road divider on Nguyễn Văn Cừ Street, at the section belonging to Hồng Hải Ward in the northern province of Quảng Ninh’s Hạ Long City this morning. Eight people who were injured in the accident were taken to hospital but Đỗ Mạnh Cường, the driver, died due to a serious brain injury. The authorities of Quảng Ninh and Hạ Long have decided to support the deceased man’s family with VNĐ6 million (US$270) and the injured with VNĐ3 million ($135) each. – US-funded centre for natural disaster prevention inaugurated A US-funded centre for natural disasters prevention and mitigation began operational in the south central coastal province of Phu Yen on July 15. Under funding from the US Pacific Command and the US Embassy in Vietnam, its construction started in October 2015 and was completed after nearly nine months. The three-storey facility spans an area of 880 square metres and is fully equipped to handle storms, floods and carry out rescue operations. It will help the province raise public awareness, update flood scenarios, design solutions to typhoons and maintain facilities, such as dams, reservoirs and docks. Phu Yen and its neighbouring provinces in the region regularly bear the brunt of severe weather conditions such as storms, floods and whirlwinds. A huge flood in 2009 inundated all 126 houses in the local Tuy An district’s An Dinh commune at depths of up to three metres. Slow Internet to continue for nearly ten days Bad news for sufferers of slow Internet in Vietnam: the repair job to restore connection will begin later and take more days to complete, a local telecom firm said on July 15. Engineers are expected to start repairing the rupture found last week in the Intra Asia (IA), one of four underwater Internet cable systems Vietnam is connected to, somewhere today, and will finish their work by 7:00 am on July 24, according to CMC Telecom. Another local Internet service provider, Viettel, previously said repairs would be performed between July 12 and 19. The cable break, identified in the IA cable section linking Vietnam and Singapore, resulted in snail’s pace connection speeds for users in Vietnam from July 9. Subscribers to Viettel, one of Vietnam’s leading Internet service providers, were most affected, as the military-run telecom firm relies heavily on the IA cable to ensure Internet traffic for its customers. The underwater cable system was launched in late 2009, connecting Singapore, Vietnam, the Philippines, Hong Kong (China) and Japan. Spanning 6,800km, the system boasts a data transfer speed of 3.84Tbps. Among the Vietnamese Internet service providers, Viettel relies on this system most heavily. The three other major submarine Internet cable systems Vietnam is internationally connected to are the AAG, SMW3 (Southeast Asia - Middle East - Western Europe 3), and TVH (Thailand-Vietnam-Hong Kong). The IA incident came only ten days after the Asia America Gateway (AAG) cable system, crucial to Vietnam’s Internet connectivity, underwent regular maintenance between June 22 and 27. AAG itself is infamous for repeated ruptures and cuts, which has left Internet users in grief many times in the last few years. Vietnam to destroy 1 ton of live cats, chicken smuggled in from China Customs officers in the northern province of Quang Ninh said on July 14 they will destroy around half a ton each of cats and chickens they seized from two trucks and which they suspected were smuggled from China. They found the cats at around midnight on July 12 and the chickens the next morning. Neither driver could produce any documents for the consignments, and the officers thought they were smuggled in to supply restaurants. The drivers said they had merely been hired to carry the animals and did not know their origins. The animals could have fetched VND45 million, or more than US$2,000. But Vietnamese laws stipulate that illegal goods should be destroyed by crushing or burning. The country’s biggest markets for cat meat are in Thai Binh and Nam Dinh Provinces, where it is still considered by some as a delicacy and served at festive occasions like wedding parties. In January last year a huge cat smuggling case shocked the nation after the Hanoi police stopped a truck carrying three tons of cats, all alive, from China. The animals, which were to be sold to restaurants in northern Vietnam, were culled. The climate change scenario for Mekong Delta is very bleak Rising sea level caused by climate change could sink nearly 40% of Vietnam’s Mekong Delta by the end of the century, with negative weather conditions already taking their toll on agricultural production, scientists say. According to the Southern Institute of Water Resources Research, the region's temperature could also increase by up to 3.5 degrees Celsius by the year 2100. The projections were released at a conference held by the Ministry of Agriculture and Rural Development in Hau Giang Province on July 13. They were based on the Representative Concentration Pathways (RCP) 8.5 climate change scenario. The delta, named the rice basket of the country, has struggled with severe drought and saltwater intrusion recently. Last year, intense El Niño conditions cut short the rainy season and saltwater intrusion came two months earlier than usual. This year farming is being threatened as 10 of 13 provinces in the delta face water shortages. Groundwater levels in the delta have dropped by up to 0.4 meter annually. The Cultivation Department said the region produced nearly 11 million tons of rice in the winter-spring crop, down 6% from the previous same period. Scientists estimated that Vietnam’s fisheries industry will also suffer damage worth about US$25 billion in 2030 due to climate change. Experts say to help the Mekong Delta survive climate change there has to be a wide range of measures, including planning for more effective use of water resources among the Mekong River countries and planting more mangrove forests along the coastline. Vietnamese celebs reject China’s claim to East Vietnam Sea After the Permanent Court of Arbitration (PCA) announced China has no rightful claim to the East Vietnam Sea with an absurd nine-dash line on July 12, Vietnamese celebrities began speaking out against Chinese infringement on their country’s maritime sovereignty. Vietnamese showbiz stars began voicing disgust on social media with China’s illicit claims to the waterway on July 13, after a ruling in The Hague proved their neighbor to the north was guilty of impeding on their country’s sovereignty. Pham Huong, crowned Miss Universe Vietnam in October 2015, took to social media to say that, “Hoang Sa (Paracels) – Truong Sa (Spratlys) belong to Vietnam,” showcasing her agreement with PCA’s rejection of China’s claim of historic rights to resources within much of the East Vietnam Sea. “China should respect the Permanent Court of Arbitration,” the Vietnamese belle opined. Model Lan Khue, who showed a full map of Vietnam, complete with Hoang Sa and Truong Sa, during the Miss World 2015 pageant in China, reintroduced the map to her social network account, implying the U-shaped line has no legal basis. Thu Minh, a local singer with over two million followers, said that the two archipelagos “are of Vietnam ever after.” The Permanent Court of Arbitration in The Hague announced its ruling on July 12 that there was no legal basis for China to claim historic rights to resources within much of the East Vietnam Sea – a subject that has long been the basis of territorial disputes by several countries. China, which boycotted the hearings at the court, vowed again to ignore the ruling and said its armed forces would defend its sovereignty and maritime interests. Formosa found burying waste at another landfill in Ha Tinh While the dumping of waste by the Formosa Ha Tinh Company in Ky Anh district of central Ha Tinh province still seems a hot topic, the company has been denounced for burying its waste at Thien Cam landfill in Cam Xuyen district one year earlier. Vice Chairman of the Cam Xuyen People’s Committee Tran Huu Duyet told the media on July 14 that the information is true, as it was reported in May 2015, that there were 8-10 trucks carrying waste from the Formosa company to the Thien Cam landfill. He steered the district Office of Natural Resources and Environment to assign the Environmental Protection Office under the provincial Department of Natural Resources and Environment and the Institute of Environmental Technology to collect waste samples to check whether they are hazardous or not. However, the two units faced difficulties in collecting and analysing the samples. Therefore, the company’s waste was yet to be tested until now. Duyet admitted that the responsibility in this case belonged to the district authority. In May 2015, about 15 tonnes of waste mud from the Formosa company was dumped at the Thien Cam landfill. In July 2016, the Taiwanese company was found burying 100 tonnes of waste at a farm owned by the director of the Ky Anh Urban Environment Company in Ky Trinh ward of Ky Anh town. Earlier on June 30, it admitted responsibility for mass fish deaths in the four central coastal provinces of Ha Tinh, Quang Tri, Quang Binh and Thua-Thien Hue between April and May. It also promised a total compensation of US$500 million to support local fishermen to switch to other jobs and recover the polluted maritime environment.- Methane explosion injures 6 in Hai Phong A methane explosion on a ship in northern Hải Phòng City injured six workers this morning. The explosion occurred at around 10am on the Toàn Thắng ship while it was anchored at Tư Long Port in Hồng Bàng District. Ngô Thanh Phong, director of the Bình An Shipbuilding Company, said their workers were working below deck when the accident occurred. “They were cleaning the lower decks, where the oil is kept. While they were cutting into a steel bar, some leftover methane exploded,” Phong said. He said the ship belonged to Thái Bình Province-based Southeast Petroleum Joint Stock Company, which had signed a contract with his company on July 4 to have the ship repaired and cleaned. Bình An Shipbuilding Company and its labour union will provide financial aid to the injured workers, he said. A worker who witnessed the accident said the six workers had sustained injuries to their faces, arms, legs and necks. They were sent to a local hospital and then transferred to the National Institute of Burns in Hà Nội for treatment. Young Vietnamese expats pay tribute to General Vo Nguyen Giap As many as 110 outstanding overseas youths from 24 countries and territories worldwide offered incense and flowers to late General Vo Nguyen Giap in the central province of Quang Binh on July 15 as part of the Summer Camp 2016 programme. They expressed their immense gratitude to the late General, whose name is closely linked with the historic victory in Dien Bien Phu in 1954, putting an end to French colonialism in the country. They affirmed that they will tell their friends about the talented Vietnamese general and his final resting place after coming back to their host nations. Attending the Summer Camp, titled “Young Vietnamese expats with national cultural heritage”, the youths have a chance to explore the country’s culture and history, further their understanding about national tangible and intangible cultural heritages and improve their Vietnamese. Participants are set to pay homage to national heroes and tour many heritage sites such as the Imperial Citadel of Thang Long and Temple of Literature in Hanoi, Ha Long Bay in northern Quang Ninh province, Hue imperial city in central Thua Thien – Hue province and My Son Sanctuary in central Quang Nam province. They will also engage in an exchange with students from the Diplomatic Academy of Vietnam to discuss cultural preservation among overseas Vietnamese and the significance of seeking global recognition for Vietnamese tangible and intangible heritages. The youngsters are scheduled to participate in charitable activities such as visiting and presenting gifts to Vietnamese heroic mothers in Thua Thien – Hue province, building book shelves for street children and growing trees at the coastal areas in Da Nang city. HCM City urges chemical restrictions  HCM City food safety inspectors check meat products. HCM City officials at a workshop yesterday in HCM City urged passage of a new regulation that would separate the sale of food additives and industrial chemicals within shops to prevent the sale of fraudulent or banned substances. At the workshop on chemical abuse in breeding and food processing, Nguyễn Hữu Hưng, deputy head of the city’s Department of Health, said that food additives were sold alongside industrial chemicals at many shops, causing confusion for city inspectors who have oversight of such goods. Some of the sellers also are not knowledgeable about usage of these chemicals and sometimes are not even aware of the differences between the substances, according to the Health Department’s food safety and hygiene division. Kim Biên Market, the chief market for such substances, sells many kinds of chemicals and additives, with a total of 17 traders. Some of the chemicals are banned from trade by the government. Hưng said the Department of Trade and Industry had been told to improve monitoring of illegal sales at the shops at Kim Biên Market. Besides strict oversight of banned substances, the city will also expand safe food chains as the city buys 70 per cent of its food products from other provinces. Phan Xuân Thảo, head of the city’s Animal Health Division, said that consumers should not be overly concerned about food safety as the quality of pork, beef, buffalo and poultry meat was ensured as the division monitored slaughterhouses at 24 establishments that meet standards. Meat from provinces such as Đồng Nai, Bình Thuận and Vũng Tàu has been checked and found safe, he said. Meat sold at traditional markets also meets standards because their management boards usually maintain strict control of trading. “Problems occur at illegal small markets near streets, especially areas with a lot of workers,” he said, adding that it was difficult to ensure quality and control. About 85 per cent of consumers in the country buy food at markets, including small markets, according to the Việt Nam Retailers Association. The rest buy food at supermarkets and convenience stores. Thảo suggested that the city call for investment from the private sector to sell food at cheap prices for workers. Phạm Thị Huân, director of Ba Huân Co. Ltd, a manufacturer of safe eggs, said that workers found it difficult to access safe meals provided by food caterers and their company kitchens. “This is harmful for the health of workers at industrial parks and processing export zones. They should step up management of food safety and hygiene at these areas,” Huân said. The city has 280,000 workers at industrial parks and processing export zones that use processed meals by food caterers every day, according to the city Food Safety and Hygiene. Five food poisoning cases have occurred in the area since 2012, including one case in which 49 people were hospitalized for treatment. Of the five cases, 80 per cent were because of contaminated food. Food processing, transportation and storage failed to meet hygiene regulations. Some vegetables and meat provided to kitchens were also deemed unsafe. The price for a meal at such places are between VNĐ10,000 (US$0.4) and VNĐ13,000. A law with severe penalties for violators of food safety and hygiene will come into effect next year. Violators could be sentenced up to 20 years in jail. MDEC 2016 raises big fund for social welfare in Mekong Delta As much as 927 billion VND (41.71 million USD) was raised for the region’s social welfare fund at the 2016 Mekong Delta Economic Cooperation Forum (MDEC 2016) that closed in Hau Giang on July 15. The figure was released by the Vice Chairman of the Hau Giang province People’s Committee Dong Van Thanh, who is vice head of the MDEC organisation board. Prominent donors include Hanoi with 19 billion VND (855,000 USD), Ho Chi Minh City - 13 billion VND (585,000 USD), and the banking sector with 257 billion VND (11.56 million USD), according to Thanh. The proceeds will be used to cover the construction of schools, local health centres, charity houses, scholarships, health insurance for disadvantaged people and natural calamity recovery. Chief of the Office of the Steering Committee for the Southwest Region Nguyen Van Ut, who is also head of the MDEC Secretariat said as part of the implementation of the MDEC 2016 joint statement, the Steering Committee will ask the Government to allocate funds for developing transport and waterway infrastructure facilities and projects to adapt to climate change in the Mekong Delta. Regional connectivity will be strengthened in agricultural production and in addressing droughts and salt intrusion. Local authorities will take efforts to enhance the awareness about and capability of international economic integration at all levels and sectors. The region will focus on boosting trade, investment and tourism promotion, expanding hi-tech agriculture production and new-style cooperative models. Measures will be devised to improve the investment climate, simplify administrative procedures, facilitate the operations of local enterprises, thus boosting the sustainable socio-economic development of the region. The MDEC Forum, originally organised as an annual event in regional localities from 2007 to 2014, aims to promote the potential and strengths of the Mekong Delta region and boost economic cooperation towards sustainable development. From 2016, the MDEC Forum will be held biennially. MDEC 2018 will take place in Bac Lieu province in April, 2018. The Mekong Delta comprises of 12 provinces and one centrally-run city with a total area of 40,000 square kilometres and a population of 18 million. It is the country’s main rice producer. Party chief pays working visit to Lai Chau Party Secretary General Nguyen Phu Trong has urged the northern mountainous province of Lai Chau to develop agro-forestry toward industrialisation and modernisation. He made the call during a working session with local authorities on July 15 as part of his two-day visit, which began a day earlier, to inspect the implementation of the Resolution adopted by the 12th National Party Congress and another by the 13th provincial Party Congress. Lai Chau needs to continue investing in infrastructure and new rural construction, reducing the rate of poor households, he said, adding that it must also pay attention to ethnic and religious work, crack down on drug crimes and maintain political security and social safety and order. On the occasion, the Party leader called for improving personnel work and developing human resources while launching more external activities, partly by increasing cooperation with China’s Yunnan province and northern Lao localities. Currently, 87 percent of the local population are ethnic minorities. With the goal of escaping its status as an especially disadvantaged province, Lai Chau has built new models of high-yielding rice and tea cultivation. All 96 communes now have proper road access to town centres, while 84 percent of households have been connected to the national power grid and 75 percent of the rural population have access to clean water. A number of major hydropower plants such as Lai Chau, Ban Chat and Huoi Quang have been built. The provincial Party Committee has devised an action plan in which three key programmes have been identified, focusing on agriculture, new rural construction, and the improvement of human resources and the grassroots political system. A programme on building new-style rural areas will continue. Earlier on July 14, the Party chief paid a working visit to Ban Bo commune. Diphtheria outbreak hits Bình Phước The People’s Committee of the central province of Bình Phước yesterday declared diphtheria an epidemic after three people died and 47 others were hospitalised to be treated for the bacterial infection. Nguyễn Đồng Thông, director of the provincial health department, said this was the first time the disease was reported in the province. Most of the infected people are from six to 26 years old and living in Đông Phú District’s Thuận Lợi and Thuận Phú communes. They have all displayed symptoms of high fever, sore throat, coughing and headaches. When combined, these symptoms are easily misdiagnosed as swollen tonsils. According to the Department of Preventive Medicine, diphtheria is caused by a type of bacteria called Corynebacterium diphtheria. The infection usually attacks children, but adults can be infected if their immune systems are weak. The condition is easily spread through person-to-person contact or through contact with objects that have the bacteria on them, such as cups or used tissues. To prevent the disease, the department advised people to get routine vaccinations, regularly wash their hands with soap, cover their mouths when coughing or sneezing, and keep their houses clean. Anyone who has symptoms of diphtheria must be quarantined and taken to the hospital for timely treatment. A reduction in diphtheria immunisations might be a factor behind the sudden outbreak in the province, Thông said. Nguyễn Văn Sáu, deputy director of the provincial health department, said the immunisation coverage among local residents was 95 per cent and those who didn’t get vaccinated might be at risk of becoming infected with diphtheria. However, he said, all three of the deceased individuals had been vaccinated for diphtheria, according to their relatives. While 80 to 90 per cent of people are immune to the disease after getting vaccinated, the rest might become infected due to some errors in the immunisation process, Sau explained. The provincial health department has coordinated with the Pasteur Institute and local authorities to disinfect the environment in communes and villages where cases of diphtheria were reported, he said. About 10,000 doses of diphtheria vaccines have been delivered to the province, Sáu said. The vaccine was provided by the Ministry of Health to ensure that all citizens aged 6-16 get vaccinated against diphtheria. Phan Trọng Lân, head of the Pasteur Institute, said the epidemic was contained to two communes and didn’t spread to other districts. He urged the provincial health department to promptly carry out vaccinations for 9,000 people aged from 6-16 to ensure that the rate of immunization covers 95 per cent of the population – the suggested percentage to prevent diphtheria outbreaks. Thông said diphtheria outbreaks often occur in areas with overcrowding, low immunisation rates and poor hygiene. He advised parents to take their children to receive vaccinations on schedule and with the right dose, as outlined by the expanded programme on immunisation. Occupational safety training centre opens with better capacity The completion of a project assisted by the Republic of Korea (RoK) on enhancing the capacity of an occupational health and safety training centre of Vietnam was marked with a ceremony in Hanoi on July 14. The project, funded by the RoK Government, was carried out from 2013 by the Korea International Cooperation Agency (KOICA), the Korea Occupational Safety and Health Agency (KOSHA) and the Vietnamese Ministry of Labour, Invalids and Social Affairs. The RoK supported Vietnam with training equipment and documents, teacher training and technology transfer costing 3.4 million USD in total. Meanwhile, the Vietnamese ministry upgraded facilities like workshops, classrooms and the dormitory of the centre, based in Son Tay township of Hanoi, at a cost of nearly 50 billion VND (2.2 million USD). At the ceremony, Deputy Minister Doan Mau Diep said occupational health and safety in the country has been improved recently. Between 2010 and 2015, training was provided for more than 70,000 managers, 15,000 business owners and millions of labourers, including over 500,000 farmers. About 1.5 million people receive occupational health and safety training every year, much lower than the 21.5 million workers who need such knowledge. Hence, demand for training in this field is huge, especially after the law on occupational health and safety requests training for the sectors that do not have labour relations. These sectors have some 35 million workers who need training. The project’s inauguration will help the centre become a leading facility of its kind in Vietnam and also assist the country to promote occupational health and safety, he added. Photo contest on water launched in Hanoi A photo contest on “Our water, our life” was launched in Hanoi on July 15. The event was introduced by the Embassies of Bulgaria, Czech Republic, Hungary , Poland , Romania , and Slovakia coordinating with Vietnam ’s Ministry of Natural Resources and Environment and the Vietnam Association of Photographic Artists. Hungarian Ambassador to Vietnam Ory Csaba said it is important to enhance public awareness of water security and climate change in Vietnam as well as around the world. The contest targets participants aged 18-28 years who are not necessarily professional photographers. Black and white or coloured photos should be be sent to waterexhibition@gmail.com . The entries should have a short description (about 3-5 sentences) and a brief self-introduction, preferably in English. Each contestant can send a maximum of three photos. The deadline for submission is September 15, 2016 and the results will be announced on September 30, 2016. The 20 best photos will be selected and displayed at exhibitions in the aforesaid countries throughout October-November 2016. Ministry seeks to expand family doctor clinics nationwide The Ministry of Health sought to expand the family doctor model across the country during a video conference in Hanoi on July 15. Deputy Prime Minister Vu Duc Dam hailed the model as a good idea that has worked well around the world; however, it has yet to be implemented effectively in Vietnam . He suggested improving initial healthcare services, including disease prevention and examination, and health consultation at grassroots medical stations. The most urgent issue at present is reforming the financial mechanism at grassroots health clinics, he said, adding that the mountainous areas need more medical stations. According to Minister of Health Nguyen Thi Kim Tien, as of last December 2015, the ministry set up 240 family doctor clinics at six centrally-run cities and provinces, surpassing the set target of 80. Of which, 234 public family doctor clinics accepted health insurance payments. The ministry established a steering committee to implement a project on building and developing family doctor models in 2016-2020. It requested the People’s Committees of cities and provinces to make more investment in health facilities at the grassroots level and expand family doctor models in particular. Provincial and municipal health departments, it was suggested, coordinate with relevant departments and sectors to build plans and roadmaps to expand this model across all localities. Water resources in Hong-Thai Binh River basin under discussion Scientists and officials from relevant agencies scrutinized scenarios on the changes of water resources in the Hong (Red) –Thai Binh river basin and their impacts at a conference held in Hanoi on July 14. The conference also took in subjects like the sustainable development of water resources, improving water use efficiency and solutions to ensure water supply in the context of climate change, economic development and related international agreements. Discussions at the event will assist with the building of a water resource plan for the Hong-Thai Binh river basin that ensures a fair and reasonable distribution of the resource among areas and groups of water users in the region. According to Dr. Tong Ngoc Thanh from the National Centre for Water Resources Planning and Investigation, the water resources planning in Hong-Thai Binh River basin should include the protection of ecosystems depending on water resources. Echoing Thanh’s viewpoint, Dr. To Van Truong said the environmental planning should be done in correlation with the water resources planning. The Hong and Thai Binh are the two major rivers in the north of Vietnam. The rivers and their tributaries form the Red River Delta. Nelson Mandela International Day celebrated in Hanoi The South African Embassy in Vietnam launched humanitarian activities celebrating Nelson Mandela International Day in Hanoi on July 15. This year’s Nelson Mandela International Day took the theme “Take Action, Inspire Change, Make Every Day a Mandela Day,” with all proceeds to be given to Vietnam-Cuba Friendship Hospital in Hanoi. Gifts will be offered to 150 children with cleft palate who undergo health check-ups and surgery in July. In 2009, the United Nations declared July 18 as Nelson Mandela International Day, which will be held annually to honour Mandela’s 67-year dedication to the fight for freedom and justice. The event called on individuals, organisations and community to spend at least 67 minutes to help change the world for the better and give help to disadvantaged individuals and community, and in doing so, to build a global movement for the good. Coach-car collision injures four in Đà Nẵng A passenger coach collided head-on with a car in the central Đà Nẵng City early this morning, seriously injuring four people. The accident occurred at 7am in front of Resort Sandy Beach in Trường Sa Road, Ngũ Hành Sơn District. The two vehicles were travelling in opposite directions. The four-seater car was badly damaged and four passengers in the vehicle were seriously injured. The front of the truck was also damaged, but all its passengers escaped unharmed. Police are investigating the accident. Mẫu Sơn Summer Tourism Festival draws thousands Mẫu Sơn Summer Tourism Festival was organised by the Lạng Sơn Province Department of Culture, Sports and Tourism earlier this month with thousands of people and tourists attending. The visitors took part in a food festival with traditional Dao dishes, an art exhibition held in old French villas and several other cultural and sporting activities such as lion dancing, folk singing, a cycle race and mountain climbing, Bé Thị Thu Hiền, deputy director of the department, said. Located some 30 km north-east of Lạng Sơn city, Mẫu Sơn is home to the Tày, Dao and Nùng ethnic minorities. The mountain boasts a pristine landscape, clean air and cool weather all year round. Tourists often flock here to enjoy its beautiful streams and waterfalls as well as occasionally experience snow in winter. The area is well-known for its specialties like peaches, Tuyết Sơn tea, wine and rare cockerels with six claws. Huế’s tile-roofed bridge a big tourist drawcard The 17m long and 4m wide wooden bridge is a big tourist attraction in the ancient city of Huế. It is an arch bridge with both sides being protected by railings with balconies. The bridge spans an irrigation canal extending from the entrance of the village to its end. On both sides are benches inviting you to rest. Eighteen wooden pillars and iron work support the bridge. The bridge is unique because of its tiled roof, a rarity that makes it a model among the bridges built at that time in Việt Nam. Next to it is the village market, which is small but offers everything, especially culinary specialties like hến (mussel) rice, fish pancakes, and a variety of rice noodles. On the other side of the bridge is a showroom displaying agricultural tools: ploughs, harrows, sickles, scoops, and rice mills. There are also bamboo and rattan souvenirs. Lam Dong: Large-scale deforestation to face prosecution Legal proceedings will be launched against a case pertaining to large-scale illegal logging in the river basin of the Dong Nai 5 Hydroelectric Plant located in Loc Bac commune, Bao Lam district. Relevant authorities will also a prosecute Le Hong Ha, born in 1968 in Dien Chau district, the central province of Nghe An, Nguyen Van Tuan from the Central Highlands province of Dak Nong and Nguyen Van Thanh residing in the southern province of Binh Duong for their involvement in the case. The police force is currently hunting for a man called Ha – leader of the illegal logging ring, widely known as Ha “den”, and is carrying out interrogations of eight other people in custody for further information about the logging. On July 8, the police conducted a surprise raid and arrested about 20 members of the gang. Relevant authorities captured tens of cubic metres of logs on Dong Nai 5 Hydroelectric Plant lake side and in the 390 forest area managed by Loc Bac Foretry Ltd., Co. Meanwhile, some 15 cubic metres of various logs were seized at Ha’s house in Bao Lam district. According to the investigators, the smuggled logs were consumed in Bao Loc city, Bao Lam district, Da Huoai district, and in other provinces like Dak Nong and Binh Phuoc.- Encephalitis spreads in north Japanese encephalitis is quickly spreading in the northern provinces, said Trần Đắc Phu, Director of the Department of Preventive Medicine under the Ministry of Health. Dr Nguyễn Trung Cấp, deputy head of the Emergency Department of the Central Tropical Diseases Hospital, said 15 cases who suffered from Japanese encephalitis were treated at the hospital in recent days. Meanwhile in Bạch Mai Hospital’s Pediatrics Department, nearly 10 cases of the disease are being treated in the hospital, Dr Nguyễn Tiến Dũng said. Cases of Japanese encephalitis have been recorded in the cities and northern provinces of Hà Nội, Bắc Giang, Điện Biên, Sơn La, Hải Phòng, Thái Bình, Lào Cai and Thanh Hóa central province, Phu said. As many as six more cases of Japanese encephalitis have been reported in Hà Nội over the last week of June, he said. Prolonged hot weather is creating favourable conditions for mosquito development and is leading to a high risk of the mosquito-borne disease spreading, Phu added. Japanese encephalitis is caused by the mosquito-borne Japanese encephalitis virus that can spread the disease throughout the year, especially in summer. The disease is more common among children under 15, he said. Japanese encephalitis is transmitted to humans through infected culex genus mosquitoes. The symptoms of Japanese encephalitis - commonly known as "brain inflammation" -include high fever, nausea and, in severe cases, seizures, paralysis and coma. While there is no cure for the disease, treatment focuses on relieving severe clinical signs and helping the patient to beat the infection. AmCham helps organise blood-donation campaign The American Chamber of Commerce in Việt Nam (AmCham Việt Nam) helped organise blood donations in HCM City yesterday during World Blood Donor Day, which was initiated by the World Health Organisation (WHO). AmCham is working with the HCM City Institute of Hematology and Blood Transfusion and the HCM City Humanitarian Blood Donation Centre-Red Cross to carry out the campaign at six locations from July 12-20. Dr Nguyễn Phước Bích Hạnh, of the HCM City Institute of Hematology and Blood Transfusion, said there was a shortage of safe blood supply at the institute. “We encourage everyone to donate blood, but they should do it only in three-month intervals. My daughter and I frequently donate blood,” Hạnh told Việt Nam News. The World Blood Donor Day aims to raise awareness of the need for safe blood and blood products. It also pays tribute to voluntary unpaid blood donors who help to save lives daily. The six-day event is expected to attract more than 1,000 blood donors. Though the number of voluntary blood donations rose nearly 8 per cent last year, the supply of donated blood meets only 58 per cent of the need nationwide, according to the institute. Tourism village to showcase life in northwestern region A series of activities based on life in the northwestern region will be showcased in the Việt Nam Culture and Tourism Village on the western outskirts of the capital. Entitled “A Month of Northwestern Echo”, the programme includes an exhibition of tools for fishing of various ethnic groups from the northwestern provinces, a photo exhibition and a one-day homestay for tourists who want to experience the daily life of the Thái, Mường and Ê Đê people. The exhibition of tools for fishing will take place from July 15 to 31, while the local people will showcase their fishing skills from July 29 to 31. The photo exhibition will feature more than 100 photos of people and landscapes of the northwestern region such as the Mường Hoa Valley, Tả Van and Cát Cát villages, the season when rice matures in terraced fields in Hoàng Su Phì and Hà Giang Province, besides Mù Cang Chải in Yên Bái Province. The homestay event will take place every weekend till the end of the month. The village is located in Sơn Tây District, 45km west of the centre of Hà Nội. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNE |
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VN urged to reduce raw mineral exports as natural resources decline The industrial production value growth in the first six months of the year slowed largely because of a decline in the mining industry.  A report from the General Statistics Office (GSO) showed 6.82 percent growth in industry, lower than 9.66 percent in the same period of last year. The decrease in industrial production growth rate was attributed to a decline in coal, oil and gas mining. The decline was not blamed on weak production activities, but on other reasons, including shortage of natural resources. In 2015, Vietnam exploited 16.7 million tons of crude oil, or 2 million tons higher than planned. In 2016, Vietnam plans to exploit 14.02 million, or 2 million tons lower than the 2015’s plan. However, in order to reach the targeted GDP growth rate of 6.7 percent, GSO may suggest exploiting 2 million tons of oil more.
GSO emphasized that this should be seen as a temporary measure to ensure the growth rate. Vietnam will gradually reduce crude oil exports, as oil reserves will be exhausted by 2035. GSO said that it was necessary to think of other measures to ensure GDP growth, such as manufacturing and processing sectors, rather than relying on oil exports. “The mining industry has declined because natural resources are decreasing and it is now more difficult to exploit minerals,” said Pham Dinh Thuy, director of GSO’s Statistics Department. “Moreover, the sharp fall in the crude oil price has seriously affected the revenue of the mining industry,” he added. Vietnam is considered the ‘black gold mine’ in Asia with estimated coal reserves of 3.5 billion tons. However, after a long period of exporting tens of millions of tons a year, Vietnam now has to import coal to satisfy its domestic needs. The Vietnam Coal and Mineral Industries Group (Vinacomin) estimates that Vietnam would have to import 20-30 million tons of coal by 2020. Meanwhile, a report of the Ministry of Finance shows that aluminum and bauxite exploitation in Vietnam does not bring profit. The Lam Dong bauxite and Nhan Co alumin complexes in Dac Nong province would only be able to make profits by 2018 and 2021, respectively. “From an importer of energy, Vietnam has become an energy importer. There is an increasingly high risk for energy insecurity which would lead to a reduction in competitiveness and lag behind other regional countries,” said Ngo Duc Lam, an energy expert. Tri Thuc Tre |
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Vietnam fishers losing US catfish marketControversial new legislation in the US that toughens inspection rules for catfish imported from foreign markets is striking fear into the hearts of fishers in the Vietnamese farm raised catfish industry.  Farmers and other actors in the industry are now deeply concerned they won’t be able to comply with the United States Department of Agriculture (USDA) new inspection rules for catfish that become mandatory in August 2017. There is legitimate concern they may lose the entire US market altogether, says the Vietnam Association of Seafood Exporters and Producers (VASEP). Under the new rules, that technically were passed last March, catfish are no longer considered seafood by the US Food and Drug Administration (FDA), but are designated as a "species amenable to" the Federal Meat Inspection Act. As a result, catfish and a few other species of fish will be inspected by the US Department of Agriculture Food Safety and Inspection Service rather than by the Food and Drug Administration's seafood inspection program. All other seafood will continue to be inspected by the FDA. In substance, catfish are now recognized for import purposes as – meat – similar to beef or pork and as such are subject to an additional level of inspections that will increase the expense and difficulty for Vietnamese consignments to the US. The USDA's inspections are also much more burdensome and frequent than the FDA's and have a separate "equivalency" test for imports, which adds a layer of regulations only on imports and could take Vietnam years to implement. In the meantime, the Vietnam farm raised catfish industry would be completely barred from the US market, in its entirety. The catfish rule doesn’t become mandatory until August 2017 due to an 18-month transition period. The US Senate recently voted to scrap the new inspection program altogether on the grounds it was duplicative, wasteful and unnecessary. However, the Senate bill would still need the approval of the US House of Representatives and President Barack Obama’s signature to become law, a proposition that appears highly unlikely to happen. The US is the leading export market for Vietnamese catfish, accounting for more than 20% of the Southeast Asian nations overseas sales. These sales totalled US$318 million in 2015. Truong Dinh Hoe, general secretary of VASEP, said the stiffer requirements will create a huge financial burden for the industry as a whole in Vietnam – if it is even possible for them to comply – as there are huge differences between rearing, transporting and processing catfish in the US compared with Vietnam. US catfish, principally farmed in southern US states of Mississippi, Alabama and Louisiana, are grown in specially constructed shallow ponds that are filled with well water and fed with expensive extruded feed made from grain. In Vietnam, catfish are grown in ponds that are supplied continuously with treated water from the Mekong River, and are fed a less expensive diet consisting principally of soybean meal. Catfish harvested in the US are transported to the processing plants live on-board trucks equipped with aerated water tanks. In Vietnam, they are transported live, but in well boats and not in aerated water. Processing plants in the US are, in general, better equipped than in Vietnam, although there are in-country factories that possess state-of-the-art technology such as those of Vinh Hoan Corporation, the leading supplier of catfish to the US market. Nguyen Ngo Vi Tam, CEO of Vinh Hoan, said his company is one of a handful of entrepreneurs that has an established integrated production chain running the gamut from breeding, farming and processing to export. Only three local companies in Vietnam currently export catfish to the US economy, according to Mr Tam, with his company accounting for a 45% market share. Many – both inside and outside of Vietnam – argue the new USDA inspection program is simply a means of protecting the domestic US channel catfish industry by throwing up barriers to trade by complicating the import process. The value of Vietnamese catfish exports to the US has been declining over the past five years, according to VASEP. It jumped from US$358 million in 2012 to US$380 million in 2013, but has since dropped to US$318 million in 2015. This decline in export value was not caused by US regulations, Vo Hung Dung, vice chairman and general secretary of the Vietnam Pangasius Association, admitted, but was “a result of our own internal problems.” Vietnamese authorities have recognized for years that merely aiming to supply cheaper product, with little regard for quality, is not the way to build a sustainable and expanding industry, said Mr Dung, but they have failed to act. Dung has called for a package of technical support from the US. This would be to upgrade the quality of Vietnamese catfish from farming and transport to processing and export. He said that forcing an upgrade in quality would provide an effective marketing tool. Vietnamese catfish would no longer be in the “lower segments” of the fish trade so its export value would improve, he concluded. VOV |
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Article 7
Sexual harassment in Vietnam’s tourism industryL. H used to be a tour guide, but she left the profession and says she won’t return. She found herself fighting two losing battles - one against sexual harassment by tourists, and another against a family that judged her for participating in an industry seen unfit for women. Vietnam’s tourism industry is facing a shortage of qualified tour guides as the country looks to bolster tourism revenue. One reason their numbers sag is the dangers they face - especially female guides, who are, according to many guides, more at-risk when it comes to sexual harassment and assault. Vietnam’s labour laws are improving, but still don’t give adequate protection to workers who have been assaulted or harassed, according to a 2013 research report by the Ministry of Labour, Invalids and Social Affairs, and the International LabourOrganisation (ILO). Female guides also struggle with their families’, friends’ and partners’ negative perceptions of their chosen profession.  L. H, 24, worked as a tour guide for just six months. She graduated from Hanoi University of Foreign Studies with a degree in English. “I got a shock right after accompanying an experienced tour guide to Ha Long Bay because I was arranged to share a hotel room with the guy and a driver,” H said. “I could not sleep the whole night and wished the daytime come quickly. I was lucky to get guidance from my brother’s friend who helped me overcome my first shock. Then, we continued our tour without any problems, until I got a message from one of the members of the tour. He told me to spend some time with him, and in return, I would get some extra money.” Two months later, during a tour to Ba Na Resort, she said a male tourist called her and asked her to stay with him for the night in return for a bonus. “I refused, and was surprised when he replied, ‘Don’t pretend to be innocent. I know you, I know tour guides, your colleagues. Do you want me to pay more?’ I could not explain and got away from him without saying a word,” H said. “I felt hurt, but ignored what happened to me because I was told about this before.” H learned from her peers how to handle tourists who made suggestions she considered inappropriate. At the same time, though, her boyfriend and his family expressed their disapproval. She said her boyfriend’s mother told her to quit working as a tour guide because it earned her a “bad reputation,” and she could find something else steadier and safer. “I think of my future and do not want to make my darling’s mom upset,” H said. “At my age now, it’s not difficult to get another job, like office worker or secretary. I finally decided to quit my job and am trying to find a new one before I get married.” Tour guide is a tough profession. It promises adventure, but that autonomy comes with challenges. Alone with tourists several provinces or time zones away from their homes, guides must fend for themselves, often without support from the companies that hired them or their families’ understanding. Q. T, who owns a cafe in Hanoi and runs an English club, has been a tour guide for 13 years. But he said he would never let his wife join the profession, and that most people would agree with him. “No Vietnamese husband wants their wife to go abroad with rich men,” he said. “They think things will happen. A lot of things can happen in a day.” Some tourists request attractive female guides. Some offer male or female guides a key to their room as an unspoken signal they want to have sex. Others offer to pay for a night together. Some guides say they are prepared to handle these types of situations. But that isn’t a solution. Coping with difficulties N. Tran, marketing development and travel consultant for BestPrice Travel, said the company hadn’t received any complaints of sexual harassment or abuse from their tour guides. But she said she was confident the guides would feel comfortable telling the company or going to police if they did. BestPrice Travel doesn’t have rules written down to handle cases of harassment. This is common for Vietnamese tour companies. “If a client has a complaint...our tour guides always know what to do,” Tran said. “Our tour guides are never allowed to lose their professionalism and politeness with customers in any case,” Tran added in an email. Many guides work as freelancers. They don’t answer to just one company, so they aren’t protected by one. Those who are employed at tour agencies are still responsible for their own wellbeings.  “When something happens, tour operators ask tour guides to deal with the problem themselves,” said N. C, 26, a freelance tour guide. “The key matter is tour guides have to use their soft skills to try their best and not cancel the tour. But controlling rowdy tourists can be more difficult for women tour guides than men. “For female tour guides there are some cases (where they are abused) but in Vietnam, because of the traditional culture, they don’t get to speak out.” And that’s when the system of individual and network-based care breaks down. On her first trip as a guide, another young woman, H. Ha, took two men down to the Mekong Delta. Ha said one night she was called to one of the tourists’ rooms to help him with his luggage, where he abused her. “I could not protect myself from the guy and did not dare to tell anyone about that, even my boss,” she said. Soon after that she quit her job because she could not cope with what happened. “It was really a nightmare for me,” Ha said. “The experience of sexual harassment was always in my mind. I could not overcome it and it felt so painful in my heart. I could not continue to do the job anymore, and wanted to escape from those bad feelings by switching careers.” Experiences like Ha’s aren’t unheard of in the industry, and it’s not uncommon for victims to keep an assault to themselves. “Tour guides sometimes do not dare to confide with anyone because they are afraid of being looked down on by friends and colleagues,” said Tran Tra, chairman of the Da Nang Tour Guide Association. “They often keep it a secret and suffer by themselves.” The Danang Tour Guide Association organises training courses for guides and provides them with updated information on the industry, Tra said. Tour guides are the “ambassadors” of Vietnam’s tourism industry, so managing and training them is a top priority, he added. Guides who attend university are taught to avoid conflict and violence with tourists, said X. K, a 20-year-old student at the National Economic University studying tourism. He said problem solving is a guide’s most important skill. But even with the training and testing all nationally certified guides go through, many feel more comfortable relying on their peers than on the police or other systems, tour guide N. C said. Most guides he knows rely on their networks instead of their employers in times of need. Protecting citizens Vietnam has regulations to protect all citizens from abuse, including tour guides, said lawyer Nguyen Dang Quang, head of the Dang Quang and Corporates law office and member of the Hanoi Bar Association. “Protecting the rights of sexually harassed workers is included in Vietnam law,” he said. “If tour guides are abused sexually they can lodge a lawsuit against the defendant.” He added that victims should speak out to police so the law can protect them. But many victims of abuse in the workplace stay silent because they’re embarrassed or afraid of losing their jobs, according to a 2013 research report by the Ministry of Labour, Invalids and Social Affairs, and the International Labour Organisation (ILO). Those who did speak out faced confusing laws that did not clearly define sexual harassment, “obligate employers to take preventative measures or...establish complaint procedures in the workplace.” Statistics on sexual harassment in the workplace aren’t widely available, according to the ILO report. But the government has acknowledged the need for improvement. Quang declined to comment on the report. The ILO and government created a Code of Conduct a year ago to address gaps in the law that stop sexually harassed or abused workers from getting assistance and closure. It “encourages nation-wide application by all companies...on a voluntary basis,” according to an ILO news release. But much more research is needed to provide an accurate picture of sexual harassment in Vietnamese tourism, and prevent future assaults. VOV |
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Article 6
BUSINESS IN BRIEF 17/7 PM urges industry and trade to restructure Prime Minister Nguyen Xuan Phuc urged the industry and trade sectors to accelerate restructuring and renew management towards a market-based economy and strive to maintain export growth at at least 10 per cent. Phuc made his comments at the Ministry of Industry and Trade's conference held yesterday to review works in the first half of this year and discuss tasks for the remainder of the year. Under discussion at the conference were a number of problems including a slowdown in industrial production, rampant food safety violations, weak management towards multi-level marketing and fake fertilisers. The implementation of development strategies for industries such as steel, automobile and mechanical production were not as efficient as expected while efforts to promote the dynamism of the business community amid rapid international integration remained inadequate, Phuc said. "All of these problems press the Ministry of Industry and Trade to hasten restructuring, especially renewing management approaches towards improving productivity through innovations and application of high technology," Phuc said. Opportunities from free trade agreements (FTAs) were there, but institutional reforms and policies must be raised timely to enable firms to grab the available opportunities, Phuc said. Phuc urged the ministry to create favourable conditions to promote the participation of the private sector in business and production. "Most importantly, the sector must strive to maintain export growth at at least 10 per cent," Phuc said. "This is a Herculean task amid the slow recovery of the world economy," Minister of Industry and Trade, Tran Tuan Anh said, adding that greater effort and determination were needed. Tuan Anh said the ministry would focus on trade promotion, dissemination of market information as well as enhancing firms' awareness of free trade agreements and eliminating unnecessary business conditions. The ministry's statistics showed that export value in the first half of this year touched US$82.24 billion, representing a rise of 5.9 per cent over the same period last year. Capital for power projects At the conference, Minister Tuan Anh proposed to the Prime Minister to allow Viet Nam Electricity (EVN) to use official development assistance (ODA) and preferential loans in developing power projects to ensure stable power supply. Tuan Anh said this would help reduce credit risks for power development projects. He said a majority of power projects were faced with capital shortage, adding that there were around 40 power generation projects and hundreds of power transmission projects. A report to the Government by the Ministry of Finance revealed that EVN's Government-backed debts totalled US$9.7 billion as of the end of 2015, accounting for 37 per cent of the total Government-backed debts of State-owned enterprises. Regarding the divestments of State capital out of Saigon Beer-Alcohol-Beverage JSC (Sabeco) in the south and Hanoi Beer-Alcohol-Beverage JSC (Habeco), Minister Tuan Anh said that the two largest brewers in Viet Nam were underway to develop plans for State capital divestments. He said that the divestments would be based on the principle that the State would hold less than 50 per cent of the charter capital or even no stake at all, adding that the ministry would evaluate the divestment plans of Sabeco and Habeco. Firms optimistic about H2 results  Most local enterprises are optimistic about production and business in the second half of this year, according to the General Statistics Office (GSO). About 55.4 per cent of local enterprises expected the production volume to increase by this year-end while 9 per cent said production volume would be reduced. Around 35 per cent predicted stability in production. With regard to production orders, 48.5 per cent of them expected orders to increase while 9.5 per cent of them estimated they would reduce. About 42 per cent of them said export orders would increase. The office said 48 per cent of local businesses expected the processing and manufacturing industry to improve, while 44 per cent thought production orders in the third quarter would increase against the second quarter. Meanwhile, 55.6 per cent of firms surveyed predicted their inventory of products would stabilise by the end of this quarter and 14.7 per cent hoped their inventory would be reduced. The office also reported the total retail sales and services and consumption revenue in the first six months of this year gained a year-on-year increase of 9.5 per cent to VND1,720 trillion. Excluding inflation, this marked an increase of 7.5 per cent, lower than the 8.8 per cent increase in the same period last year, according to the GSO. In the first six months, retail sale revenues reached VND 1,310 trillion, 9.8 per cent higher than the same period last year, accounting for 76.2 per cent of the total. Provinces and cities that achieved high growth rate in retail sale revenues included Binh Duong, Nam Dinh, Thanh Hoa, and Khanh Hoa, in addition to Quang Nam, An Giang, Bac Giang and Hai Phong. PVN told to grow by restructuring The Viet Nam National Oil and Gas Group (PVN) should promote further restructuring of its enterprise and products to increase competition and efficiency in operations, Deputy Prime Minister Trinh Dinh Dung said. He was speaking at PVN's conference on tasks in the second half of this year. At the conference held in Ha Noi yesterday, the group said it accomplished all targets for the first half this year. Its industrial production value gained a year-on-year growth of 9.1 per cent and crude oil exploitation volume achieved increase of 7.7 per cent to 569,000 tonnes against its target. The group reduced production cost of electric, fertiliser, petrol and oil products by 20 per cent against its plan. During the first half of this year, PVN promoted the equitisation process in its member companies, including PVPower, PVOil, BSR, PTSC and Petrosetco. The second half of this year is forecast to still have difficulties in production and business, including the impact from the crude oil price that has not yet seen a strong recovery, Brexit and the difficult conditions for development of domestic and international oil and gas projects. Deputy Prime Minister Trinh Dinh Dung highly appreciated the PVN's production and business results in the first half of this year. However, the group still had many problems, including low efficiency in some projects and even suffering losses in some other projects, he said. The group also expanded its investment activities to non-core businesses. The deputy prime minister said its main tasks until year-end would include restructuring the enterprise, products and investment activities of the group and its member companies to increase efficiency in production and business, and competitiveness, as well as ensure the national energy security. The group should review all its projects to improve efficiency of the projects and focus its investment on products and sectors that need priority, he said. For restructuring the enterprise, the group should focus on equitisation, restructuring of corporate management, and revamping its technology to increase quality and ability of management as well as labour productivity. Dung also said the PVN should anticipate market risks to have reasonable investment and production plans. At the conference, PVN predicted that the average crude oil price would be between $45 and $50 per barrel and the group could exploit 12.6 million tonnes of crude oil and 4.5 billion cubic metres of gas. It would achieve its targets in production and business, it added. Government targets smuggled and counterfeit goods The Market Surveillance Agency under the Ministry of Industry and Trade will step up supervision on smuggled and counterfeited food and beverages. It is considered one of the key tasks that the agency needs to accomplish in the last half of this year, the agency’s deputy head Nguyen Thanh Binh said. The agency will conduct supervision at areas near borders or wholesale markets in the provinces of Cao Bang, Lang Son, Quang Ninh, Lao Cai, Quang Tri, Ba Ria-Vung Tau and cities of Hai Phong, Hanoi and Ho Chi Minh City. Statistics from the Ministry of Industry and Trade revealed that more than 54,400 violations were found in the first half of this year, a 1.5 percent decrease compared to the same period last year, contributing nearly US$14.7 million to the State budget. Imported packages of cigarettes, bottles of beer and wine, beverages and fertilisers were among the products with the most violations. The agency said that smuggling and counterfeiting has become more complicated with more and more “sophisticated” tricks to disguise and hide the products. Meanwhile, there are several difficulties in cooperating with businesses and associations to ask them to provide information to support the agency to monitor and punish violations. The work is also obstructed by high costs on counterfeit assessment and shortages of equipment and devices. Binh said that the agency would work more closely with customs, border soldiers and inspectors to strengthen the crack down on smuggling, counterfeiting and trade fraud. He also proposed the Ministry of Industry and Trade asks for Government permission to establish a mobile market management team in order to improve the efficiency of the work. Deputy Minister of Industry and Trade, Do Thang Hai, said that the Ordinance on Market Management which was newly approved by the National Assembly and will take effect in September this year is an important milestone to help overcome difficulties and improve efficiency of market management. The Ordinance deals with issues like the organisation and function of the market management force, policies for market watch officers, the mechanism for cooperation with other agencies and inspection of market surveillance forces. “The first market management Ordinance has recognised the legal function of market management nationwide. The effective implementation of regulations in the Ordinance will enhance effectiveness of the fight against smuggling and trade fraud,” he said. With the increase in smuggling cases and trade fraud, Tran Vinh Tuyen, Vice Chairman of HCM City’s People’s Committee, said at a meeting held on July 8 that violators engaged in smuggling, trade fraud and counterfeit goods would be strictly punished. Tuyen said the police, customs and market management officials would work together to fight smuggling via Tan Son Nhat International Airport and from the southern provinces of Long An and Tay Ninh to HCM City. Enforcement will also be strengthened against smuggling at bus stations such as Mien Dong (Eastern) Coach Station, Mien Tay (Western) Coach Station and An Suong Coach Station. Waterways, where a number of smuggling cases have occurred, especially on Thay Cai Canal, will be monitored as well. Policies and regulations will be established to closely supervise imports for re-export, as well as business activities related to food safety. Phu My Urea named among Forbes Top 40 valuable brands Phu My Urea, a brand of fertilizer produced by the PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo), was listed in the Top 40 valuable brands in Vietnam voted by Forbes Vietnam. The brand was ranked 30th with the brand value of US$27 million and described by Forbes as the country’s leading brand in the fertilizer industry. It is also the only fertilizer brand named in the list. Phu My Urea currently holds 50 percent of the market of the Mekong Delta, Southeast region, Central Coast and the Central Highlands. Forbes Vietnam has shortlisted the 40 most valuable brands in Vietnam for the first time. These were selected from more than 300 domestic brands, excluding international brands manufactured locally, with a total value of about US$5 billion. The list was led by giant dairy milk producer Vinamilk, followed by military telecom group Viettel in the second place. It also includes private realty group Vingroup, State-owned brewer Sabeco, technology group FPT, Vietinbank, Vietcombank, Masan Group, and flag carrier Vietnam Airlines. According to Forbes Vietnam, most of the valuable brands were formed after 1986 under the “doi moi” (reform) era when Vietnam turned to the open economy under the market mechanisms. The method of evaluation was to rate how brands contributed to the financial results of the firms. The calculation of the contribution must be based on transparent financial statements. Firms with brands of over 20 years with good value such as Kinh Do (KDC), Vinacafe Bien Hoa, Vinh Hao Mineral Water JSC were not included because they sold more than 50 percent of stakes to foreign partners. Cashew market remains volatile after Brexit The country’s kernel exports for the first half of 2016 jumped 4.4% in volume and 11.1% in value when compared to the first half of last year, says the Vietnam Cashew Association. In its most recently released report, Association figures show overseas consignment of cashew kernels for the January-June six-month period tallied in at 156,000 metric tons valued at US$1.2 billion. The market will largely remain unaffected by the UK’s decision to exit the EU over the long-term, said Nguyen Duc Thanh, chairman of the Association, in a recent speech, although it is certainly being hit hard as a result of currency fluctuations in the short-term. The country is still on track to hit this year’s plan to process and export 350,000 metric tons of kernels at US$2.5 billion of revenue, he said, though that prospect is becoming increasingly more unlikely. The Chairman underscored the importance for the cashew industry as a whole and agriculture in general to beef up efforts to strengthen the country’s national sanitary and phytosanitary framework. The benchmarks for the industry as set forth by the International Standards Organization (ISO) have been in place since 2009, said Mr Thanh, but according to one recent official study, only 22 out of 371 smallholder farmers surveyed in the country meet with those standards. With the Vietnam-EU free trade agreement winding its way through the ratification process and still on target for implementation in 2018, there is no issue of greater importance for cashew farmers. The EU health and safety standards are some of the strictest in the world and even when tariff barriers come down as a result of the trade deal, an inability to comply with ISO rules such as those regulating acceptable pesticide residue levels will prevent their exports from entering EU commerce. “To fully capitalize on the potential – and to be competitive – product coming from production cost environments such as Vietnam, must meet these high quality standards,” said Chairman Thanh. He added: “The EU is a huge economy and therefore presents great opportunities for not only cashews but all of the country’s ag producers. As we speak, agricultural exports to the EU are on the rise and boosting food safety is crucial for the country’s smallholders to fully enjoy access to it. The competition from African nations is tough and African smallholders are now looking to re-ignite trade in the EU, with many already having signed free trade agreements that have gone into effect eliminating tariffs on cashew and other ag imports. They are also putting in place major food and safety projects in an all-out effort to strengthen their sanitary and phytosanitary-related institutions and establish a larger footprint for themselves in EU commerce. The country’s industry faces continual challenges both with putting in place the necessary legislative frameworks and procedures for implementation, said Mr Thanh, basic requirements for building capacity among its producers and exporters to take full advantage of access to the EU economy. “The best way to promote the country’s cashew industry is to shift the focus from price to quality,” said Thanh, adding until that happens the market will most likely remain unnecessarily volatile. Binh Dinh mulls constructing MSW power plant Outgrow Energy Consult Co Ltd (OEC) based out of Bangkok, Thailand has unveiled its proposal to oversee construction of an electricity power plant utilizing municipal solid waste (MSW) technology at the Nhon Hoi Economic Zone. Details of the proposition were discussed in specific detail by Tipanan Sirichana, managing director of OEC at a recent meeting with the Binh Dinh Provincial People’s Committee. The Managing director said MSW technology is a more cost effective and environmentally friendly alternative to landfilling or composting technologies, which would require the province to purchase fuel to incinerate the waste. In contrast, MSW facilities are paid by the fuel suppliers to take the fuel (known as a ‘tipping fee’). The tipping fee is comparable to the fee charged to dispose of garbage at a landfill and would result in significant cost savings for the province. OEC specializes in project development services related to obtaining approval of power purchase agreements, engineering construction and funding services for power plant projects, said the OEC managing Director. The company has previously been actively involved in the construction of five power plants in Vietnam. Making Ho Chi Minh City a Start-up hub Ho Chi Minh City is a dynamic place for start-ups to develop their business ambitions. The city has recently launched a program to make itself a start-up hub. Ho Chi Minh City intends to become a start-up hub whose investment and commercial environment inspires a start-up spirit among would-be entrepreneurs in every sectors. Truong Hoang Phi, Director of HCM City’s Center for Young Start-ups, said “With the goal of turning HCMC into a seed bed for start-ups, especially by young people, we aim to promote young people’s creativity and innovation and provide them with financial support to realize their ideas. The program has been welcomed by young businesspeople, start-ups, students, and people who are nurturing a business dream.” The HCMC Youth Union, the Vietnam Youth Federation, the Vietnam Student Association of HCMC, and the HCMC Young Business Association have cooperated to assist young start-ups. The HCM City Startup Investment Fund (HSIF), which has a starting capital of VND30 billion, will invest directly in smart phone and Internet applications and high-tech agricultural production. Nguyen Tuan Quynh, Vice President of the HCMC Young Business Association, said, “The HCMC Young Business Association has worked with the Center for Young Start-ups to organize contests on start-up ideas, conduct training courses, and finance projects. We provide technical support and senior businesspeople will give advice to the juniors. We finance trade promotion activities to give young people opportunities to market their products. We also sometimes invest in projects or provide loans.” Secretary of the city’s Party Committee Dinh La Thang said HCM City intends to lead the start-up movement in Vietnam. The City authorities and vocational organizations are collaborating to make HCMC a start-up hub for young people. Footwear: EU free trade benefits don’t outweigh the costs Vietnam became the world’s third largest footwear manufacturer in 2014, commanding a 3.7% market share, trailing China and India in first and second place, respectively, according to the World Footwear Yearbook. The nation’s footwear exports subsequently jumped 15% year-on-year in 2015, crossing the US$12 billion benchmark, according to statistics of the Vietnam Leather, Footwear and Handbag Association (Lefaso). Roughly 70% of the nation’s footwear exports are sports shoes, said Phan Thi Thanh Xuan, secretary general of Lefaso, with the US and the EU the two largest markets accounting for a 33.9% and 33.1% market share, respectively. China with a 6.3% market share and Japan at 5% follow far behind as the third and fourth biggest export markets. The increase in overseas sales for 2015 were largely attributable to an increase in the allotted sales quotas for the EU, said Mr Xuan. Now with the Vietnam-EU free trade agreement having been signed and moving through the ratification process with a 2018 target date for implementation, prospects for the market appear bright. About 79% of the nation’s footwear exports are attributable to the foreign manufacturing sector, principally companies based out of Taiwan and Republic of Korea (RoK), with the domestic sector accounting for the balance of 21%. With regards to home retail market, the domestic manufacturing sector has roughly a 50% market share with the remaining 50% comprised of imports from China, Thailand and a handful of other countries. Due to increasing production costs in China, a large number of foreign manufacturers have been relocating their existing facilities out of China to Vietnam over recent years, said Mr Xuan. This redirection of sales away from China to Vietnam was the primary factor explaining the increase in the nation’s exports for 2015. To a more limited extent the nation has seen an increase in foreign direct investment and sales as companies reposition themselves to take advantage of the Vietnam-EU free trade agreement. Pursuant to that agreement, about 80.3% of import tariffs on footwear will be eliminated immediately upon the creation of the free trade region with the remainder phased out over the subsequent seven years. The biggest challenge facing footwear said Duong Le from Lefaso is that the rapid development of leather and footwear manufacturing is creating environmental pollution concerns and tremendous added cost. Particularly with regards to leather tanning and fabrics for shoes, he said. Making the leather and synthetic materials in Vietnam entirely too costly if one figures in the additional cost to safeguard the environment. From a cost benefit perspective, it may be best for shoe manufacturers to continue buying raw materials from China and the RoK and forgo all tariff reductions afforded by the Vietnam-EU trade deal. Currently the domestic manufacturing sector can satisfy just 30% of the demand for tanned leather, however foreign investors don’t find it cost effective to construct more tanning and fabric facilities as the benefits just aren’t there. Tien Giang: FDI projects double in first half The Mekong Delta province of Tien Giang drew nine foreign direct investment (FDI) projects in the first half of 2016, doubling the figure for the same period last year, with seven landing in its industrial parks. According to Nguyen Thanh Liem, deputy head of the provincial Industrial Zones Authority, the new projects have a total registered investment of US$328 million, a 16-fold increase year on year. The outcome was largely owing to the local authorities’ efforts to improve the business climate and simplify investment procedures to attract more investors. The locality has been working to formulate preferential policies for investors and offer incentives for investment in key industries. The province has to date had 84 investment projects located at industrial parks, including 58 FDI projects worth more than US$1.7 billion, while its industrial clusters host 86 investment projects with a combined registered capital of approximately VND2.8 trillion (US$125.6 million). These projects have provided job opportunities for about 87,000 workers. In the first six months of 2016, they generated over VND22 trillion (US$986.7 million) in industrial production value, up 35.74% against the same period last year and fulfilling nearly 55% of the yearly target. They also earned more than US$675 million from exports, up 32% year on year. Hanoi to host handicraft fair 2016 A 200-booth handicraft exhibition will take place at the Thang Long Royal Citadel in Hanoi from August 26-29, said Ngo Quang Trung, Head of the Agency for Regional Industry Development under the Ministry of Industry and Trade. The exhibition is part of a programme to grant the “People Artisan” and “Meritorious Artisan” titles to stand-out craftsmen. An exhibition zone will be arranged to display products made by excellent artisans, including rattan, embroidery, silk and porcelain items. Local businesses will also introduce rural industry products at the fair area. Along with honouring great craftsmen who have made significant contributions to building and preserving traditional craft villages, the event also popularises Vietnamese fine art products to international friends, aiming to seek business partners and enlarge consumer markets. The event also serves as a valuable opportunity to introduce the achievements made in the protection and development of Vietnamese traditional villages. Skills performances, as well as conferences on handicraft product designs and a seminar on the orientations for handicraft exports are scheduled during the event. EVN highly uses thermal power in July Electricity of Vietnam (EVN) will make full use of its coal and gas power plants in July to meet the maximum load capacity of the national power system, which is estimated at 28,690 MW. The group will increase the utilisation of hydropower reservoirs in the basin of the Red River and Dong Nai River as well as coal- and gas-fired thermal power plants in the central and southern regions. Flood season in the north and central region this month could affect electricity generation, transmission and distribution. Therefore, the EVN has directed all units to employ measures to ensure safe and sufficient power for locals and facilities, while preparing staff to quickly address incidents caused by natural disasters. The power grid management agencies will also tighten inspection to detect landslide-prone areas. Betweeen January-June, the EVN coordinated with the Ministry of Agriculture and Rural Development, the Water Resource Directorate and localities to operate hydropower reservoirs to ensure water for agricultural production and drive back saltwater in the Central Highlands and central regions, which have been affected by serious and prolonged drought. EVN produced and bought 84.75 billion kWh of electricity in the period, a year-on-year rise of 10.75%. As much as 28.3% of electricity came from hydropower plants, 29.36% from gas-fired turbine plants, and 39.87% from coal-fired thermal power plants. Commercial power output reached 76.44 billion kWh, a yearly increase of 11.73%. Dragonfruit paves way for Vietnam’s fruit exports to Thailand More than 100 tonnes of dragonfruit have hit the shelves of retail chain BigC in Thailand, the first step to boost the shipment of Vietnamese farm produce to one of the world’s biggest agricultural producers, the Cong Thuong (Industry & Trade) newspaper reported. Vietnam’s fruit and vegetables were shipped to over 40 countries and territories, bringing home about US$2 billion, in 2015. Though this revenue is an impressive figure compared to other agricultural exports, it is still modest when taking into account the global fruit and vegetable market, which has a trading value of US$100 billion each year. Vietnam has touched just a small part of the world’s vegetable market, agricultural specialist Nguyen Dinh Bich said, adding that this is a big opportunity but also a considerable challenge to Vietnamese farm produce. Dragonfruit currently makes up 40% of Vietnam’s total fruit export turnover, he noted. After buying wholesaler Metro Cash & Carry Vietnam in January 2016, Thailand’s TCC Holding group has been looking for Vietnam’s flagship agricultural products for export to its homeland. Phidsanu Pongwatana, who is in charge of TCC’s retail system in Vietnam, said: “The first batches of Vietnam’s dragonfruit satisfied Thai consumers with their freshness. The market’s demand for this product is very high. TCC hopes to increase the exports of this fruit to Thailand in the future.” The firm is also seeking suppliers of sweet potato, starfruit, orange, avocado and lime. Da Lat flowers and frozen catfish products from Vietnam also hold potential in the market, he added. Cao Thanh Phat Export – Import Co. Ltd, based in the central province of Binh Thuan – a dragonfruit growing hub of Vietnam, provided the 100 tonnes of the fruit for TCC. Its Managing Director Nguyen Cong Kinh said Thailand is a leading exporter of farm produce in the world. Vietnamese goods must be of high quality to enter this market. The company has contracted farmers whose production activities follow the Vietnamese and Global Good Agricultural Practices (VietGAP and GlobalGAP), he said, noting that its packaging factory has met US standards. The firm also has quality control staff to ensure product quality. Many agricultural experts said it is not easy for Vietnamese fruits to make inroads into Thailand, but there are plenty of opportunities as bilateral trade relations are expanding, especially as the two countries are now members of the ASEAN Economic Community. Bac Ninh creates best conditions for enterprises The White paper: “Vietnam Private Economic Forum – Opportunities, Challenges and Solutions,” debuted at a press conference in Hanoi on July 8. The paper details a joint statement and thematic declarations adopted by the 2016 Vietnam Private Economic Forum, including an analysis of general context and firms’ viewpoint on the state of Vietnam’s private economic sector. It also features major proposals on policies for the digital economy, agriculture, vocational training, distribution and logistics, financial market and capital mobilisation, the support industry, clean energy and energy saving, as well as recommendations on start-up and innovation, industrial clusters, integration and globalisation. The first Vietnam private economic forum held on June 3 attracted more than 700 businesspeople representing seven fields and three economic sectors, representatives from the government and international organisations, domestic and foreign economists, scholars and experts in investment, finance, industry and agriculture. According to the organising board, the annual forum aims to maintain the public-private dialogue mechanism, becoming a launch pad for promoting connectivity and international cooperation. Chairman of the Vietnam Young Entrepreneurs’ Association (VYEA) Bui Van Quan said the forum is expected to become a more important driver of the country’s development and integration amid the setting of globalisation. The conference was co-hosted by the VYEA, the Central Committee of the Ho Chi Minh Communist Youth Union and the Vietnam Youth Federation. Automobile sales decrease in June Vietnam’s automobile sales in June totaled 24,421 units, dropping 6% against the previous month, announced the Vietnam Automobile Manufacturers’ Association (VAMA) on July 8. They include 12,916 passenger cars, down 8% from May, 10,325 commercial vehicles, up 0.1%, and 1,180 special-purpose vehicles, down 30%. While 18,014 units sold were assembled domestically, a 6% decrease from the previous month, 6,407 were completely built units (CBU) imported from other countries, dropping by 7% month on month. However, overall sales turnover in the first half of this year surged 31% compared with the same period last year. The sales of passenger cars, commercial cars and special-purpose cars rose 24%, 40% and 50%, respectively. From July 1, 2016, under the latest Law on Special Consumption Tax, cars with a cylinder capacity of 1.5 litres and lower will now be taxed at 40% – 5% lower than previously. Auto businesses said car sales in June decreased as consumers waited to buy cars after the Government tax came into effect. First Vincom Plaza shopping mall breaks ground in Dong Thap Construction on Vincom Plaza shopping complex, the first of its kind in the southern province of Dong Thap, began in Cao Lanh city, on July 11. The five-story mall, will gather famous brands in fashion, consumer goods, cuisine at home and abroad, a recreational area for children, and a modern cinema across a site of over 12,000 sq.m. Managed by Vingroup’s Vincom Retail, which currently operates 25 shopping malls nationwide, Vincom Plaza Cao Lanh is expected to be operational in April 2017 as the most modern in the Mekong Delta. Le Khac Hiep, Vingroup Vice President, said the complex will contribute to boosting trade and changing the face of Dong Thap and adjacent localities. Founded in Ukraine in 1993 under the name of Technocom, Vingroup has become Vietnam’s leading private sector real estate company. It comprises such subsidiaries as Vincom for high-end shopping centres, Vinhomes for residential properties, Vinpearl for tourism and recreational facilities and Vimec for hospitals. The firm was twice named winner of the “Best Developer Vietnam” category at the annual South East Asia Property Awards in 2013 and 2014. Recently, together with Vinamilk, Vietcombank, FPT Corporation and Petrovietnam Gas Joint Stock Corporation, the group made it into the Nikkei Asian Review’s Asia 300 list, which names Asia’s most dynamic companies. Last year, Vingroup opened 10 shopping malls across the country and the ambitious company plans to make nearly 50 trading centres operational in 2016, aiming to nudge international-standard products and services ever closer to Vietnamese people.- Hai Duong exports 5,000 tonnes of lychee so far The northern province of Hai Duong shipped 5,000 tonnes of lychee to foreign countries during this year’s crop. China remained the largest importer with over 2,000 tonnes, followed by the Republic of Korea (500 tonnes), France (90 tonnes), Thailand (80 tonnes) and Australia (18 tonnes). To assure the quality of lychee exported to fastidious markets, the province has zoned off an additional 300 hectares of lychee cultivation in Chi Linh town and Thanh Ha district for VietGAP and GlobalGAP standard production. Hai Duong, one of key lychee cultivation localities in the country, has nearly 11,000 hectares of lychee and uses the VietGAP and GlobalGAP standards for about 250 hectares. This year, its lychee output was estimated to reach 50,000 tonnes. VPBank wins best mobile banking award Vietnam Prosperity Bank (VPBank) has been recognised as the "Best Mobile Banking Vietnam 2016" by Global Banking and Finance Review, due to its continuous efforts to improve its products. The VPBank Mobile application has been considered to be a small bank available on mobile phones, providing many financial services, such as account management, money transfers, bill payments, and access to saving accounts and loans. This is one of the first e-bank applications in the country allowing operation on iOS, Android and Windows Phones. The latest 2016 version has very fast speeds, is more user-friendly and has doubled the number of transactions, accounting for 30 percent of total online transactions. Further, its back-end system has helped protect customers' information. VPBank plans to upgrade and develop its products to meet the increasing demand of customers while maintaining its first position in the digital banking area. Binh Dinh resort worth 311 million USD to open in July The FLC Quy Nhon complex in southern Binh Dinh Province is scheduled to open on July 30. The 7 trillion VND (311.1 million USD) complex includes an 18-hole golf course, high-end luxury resort, FLC Luxury Hotel Quy Nhon with some 900 rooms, 500 villas and a 1,500-seat international convention centre, along with swimming pools and entertainment areas. Launched in May 2015, FLC Quy Nhon's Golf course, called Golf Links, opened after only six months and is considered one of the three most beautiful golf courses in Asia. Many experts expect that with an area as rich in tourism potentials as Quy Nhon, and with its scale and impressive design, FLC Quy Nhon will become a blue ocean paradise in the Central region, attracting large numbers of domestic and international tourists. Located in Nhon Ly, FLC Quy Nhon embraces 3km of coastline, in which Eo Gio offers what is believed to be the most beautiful sunsets in Vietnam. Honda Vietnam recalls nearly 10,000 cars due to airbag error Honda Vietnam said that it began recalling 9,764 Civic, CR-V and Accord cars from July 8 to replace airbag inflators for passenger seats. The recalled include 6,288 Honda Civics produced from 2007 to 2011, 3,317 CR-Vs made from 2009 to 2011, and 159 Accords manufactured in 2004 and from 2009 to 2011. All affected customers will be contacted via emails or direct phone calls. People can also make free-of-charge calls to 1800-555-548 or 1800-8001 to know if their cars will be recalled or not. All relevant costs will be paid by Honda Vietnam. Central Group, MOIT showcase Vietnamese products in Bangkok A fair featuring some of Viet Nam's finest products has opened in Central World, Bangkok's largest shopping centre. Organised by Thai Central Group in conjunction with Viet Nam's Ministry of Industry and Trade, the week-long showcase includes products from leading Vietnamese enterprises such as Binh Phu Furniture Company, fine porcelain and chinaware producer Minh Long, Vietnamese brewery Sai Gon Beer and Dien Quang Electrical, as well as textile company Hoa Tho; food producers Bich Chi, Hoan Chau and Tan Hue Vien; Tam Lan tea company; and Highland Coffee. "This is a tremendous opportunity for us to take Viet Nam's culture and products to the people of Thailand and underscores our company-wide commitment to increase opportunities for Vietnamese companies to increase their market share beyond their borders thanks to our network of stores and companies around the world," Central Group spokesperson Sudhitham Chirathivat said. "This will be the first time the Viet Nam Fair has ventured to Thailand and the twelfth staging of the event overall, having showcased the nation in numerous other countries in the past," Viet Nam's Deputy Minister of Industry and Trade Ho Thi Kim Thoa said. "We look forward to partnering with Central Group more often in the future for such exhibitions around the world," she added. Viettel to help develop Da Nang as 'smart city' The central city and the military-owned telecommunications group Viettel last week signed a memorandum of understanding (MoU) for building Da Nang as a ‘smart city'. According to the agreement, Viettel will support Da Nang to develop information technology (IT) applications for smart management in health and education and training in the 2016-20 period. Vice-Chairman of the city's people's committee Dang Viet Dung said the agreement was a milestone in the co-operation between the city and Viettel in IT, creating a smooth path for the development of a smart city in the future. Da Nang, which is seen have potential to develop as a smart city, needs to adopt smarter solutions to manage the transport infrastructure, environment, power and water systems, besides population to tackle rapid urbanisation. As a crucial step towards building a smart city, the city has launched the e-government system that has IT applications, policies and mechanisms on IT and communications and IT manpower resources. According to the city's information and communication department, IT infrastructure is available to boost smart connections in sectors such as air control, water management, garbage collection and meteorology, as well as energy, earthquake and tsunami warning, floods and erosion and sewage, besides lakes, dams and bridge management systems. The city is ready for the introduction of 4G LTE (Long-Term Evolution) and the Internet of Things by 2018. The city has also introduced a paperless administration office in Lien Chieu District to ease the manual procedures for the local people. Vietcombank's profits rise 38% Bank for Foreign Trade of Viet Nam (Vietcombank) earned nearly VND4.2 trillion (US$186.7 million) in pre-tax profits till June 2016, up 38 per cent over the same period last year. Vietcombank General Director Pham Quang Dung told a meeting in southern Kien Giang Province late last week that the H1 profits represented more than half of the target the bank had set for 2016. As of June 30, deposits at the bank reached VND535.2 trillion, up 6.7 per cent over the end of last year. Its outstanding loans totalled VND437.6 trillion, increasing 10.8 per cent over the end of 2015. During H1, revenues from international payment and trade finance amounted to $24.8 billion, an increase of 8.3 per cent year-on-year. Dung said the bank maintained the leading position in the domestic market in terms of foreign currency and bank card services, while attaching special importance to international credit activities. The bank saw progress in non-performing loan settlement and ensuring the capital adequacy ratio, he said. Viet Capital Bank opens branch in Ha Noi Viet Capital Bank last week opened a new branch in Ha Noi's Cau Giay District. The Thang Long branch, at 375-377 Hoang Quoc Viet Street, provides the bank's full range of financial services. On the opening morning it attracted more than 50 customers, who deposited nearly VND10 billion (US$448,430). The bank now has two branches and five transaction offices in the capital. It plans to open a branch each in Hai Phong, Quang Ninh and Kien Giang and six transaction offices in Binh Duong, Dong Nai, Tay Ninh, and Da Nang this year. Demand for SPS shares surges Twenty-five investors have registered to buy 9.3 million shares in Saigon Petroleum Service Corporation (SPS). This is six times the number of shares offered by Saigon Trade Corporation- member limited liability holding (Satra), the auction organiser HMC Stock Exchange (HOSE) said. Satra offered 1.53 million shares with a starting price of VND30,000 (US$1.35) on July 14. Established in HCM City in 1992, SPS provides services for the petroleum industry, international and domestic travel services, restaurant and hotels and employment services and labour supply, besides vocational training and orientation, export of labour, real estate business and housing services, as well as leasing of houses, offices and warehouses. In the last five years, SPS recorded almost no growth in profits, which remained at about VND6 billion. In 2015, the total net revenues reached VND200 billion, a marginal rise from the previous year. At the end of 2015, the total assets of SPS were worth VND129 billion. The firm planned to pay a dividend of 16 per cent for 2015. Equitisation fails to meet the target While the local stock market was waiting for the listing of major State-owned enterprises (SOEs) that were to go public, the Ministry of Finance reported that the pace of equitisation in the first half of 2016 had not reached its target. Authorised agencies approved the equitisation plans of 39 State-owned enterprises, (SOEs) with a total value of VNĐ27.06 trillion (US$1.2 billion), in the first six months of this year. State stakes accounted for VNĐ21.63 trillion of the total, according to a report on SOE equitization in the 2011-2015 period, as well as tasks and solutions for the next five years sent by the Ministry of Finance to the Government. In the first half of 2016, the State received VNĐ4.17 trillion from selling its stakes in SOEs, well above the VNĐ2.09 trillion invested in the sectors, the finance ministry wrote in a report published early this month. The figure includes VNĐ175 billion from non-core operations in real estate, securities, finance-banking, insurance, and investment fund management sectors, VNĐ1.17 trillion from SOEs in other sectors, and VNĐ2.82 trillion from the State Capital Investment Corp (SCIC). During 2011-15, SOEs divested a combined VNĐ10.74 trillion from these five non-core sectors in which they earlier invested over VNĐ11.03 trillion (US$494.8 million), the report said. SCIC withdrew state capital from 368 enterprises and collected more than VNĐ6.9 trillion, 2.4-fold higher than the sum invested earlier, earning a profit of VNĐ4.06 trillion from selling State stakes. The corporation has taken over State stakes worth VNĐ8.72 trillion in 1,000 companies since its establishment. However, State capital divestments had incorrectly stated their expectations, according to a six month report from the Corporate Finance Department, which also said that shares sold at the initial public offering (IPO) were lower than targeted, while State shares in equitised enterprises remained high. As an example, State-owned Construction Machinery Corporation offered 5.3 million shares in its IPO today, however, only one per cent of the shares were registered by two investors. Deputy Director Corporate Finance Department from Ministry of Finance Đặng Quyết Tiến said the speed of equitisations was improved in the second quarter, but it was still not reaching its target. Tien noted that some of the SOEs' leaders did not fully understand the contribution of their firms' restructuring in the economy, adding that fears about their positions after equitisation might add to the problem. Tiến also said the restructuring of large-scale SOEs, which work in diversified businesses professions, needed complex financial solutions for equitisation, while large investments and improved investments needed additional time to be carried out. According to the SOE restructuring scheme through 2020, the number of SOEs would be reduced from 1,309 to 17, while corporations holding 100 per cent of state capital would fall to 200. According to the report, 478 SOEs were equitised, while 80 others underwent restructuring from 2011-15. Additionally, after going public, enterprises saw their chartered capital rise by 72 per cent, total assets by 39 per cent, equity by 60 per cent and pre-tax profits by 49 per cent last year. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR |
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Poor households stand at 2.3 million Vietnam has 2.3 million poor households, accounting for 9.79 per cent of all households in the country, according to a report from the Ministry of Labor, Invalids and Social Affairs (MoLISA) sent to the Ministry of Finance on July 12. Binh Phuoc and Soc Trang province did not submit provincial reports.  The MoLISA report also shows that the number of near-poor households is almost 1.25 million, equal to 5.3 per cent of the total. Southern Binh Duong province is the only province not to have poor or near-poor households. Ho Chi Minh City does not have poor households but its near-poor households account for 0.02 per cent of the total. Dien Bien province, in the northwest, has the highest rate of poor and near-poor households, at 48 and 8 per cent, respectively, and is home to 56 per cent of all poor and near-poor households in the country. Incomplete figures show that the southeast of the country has the lowest number of poor and near-poor households, at 2.14 per cent of the total, followed by the Red River Delta in the north, with 8.12 per cent. The northwest mountains and northeast mountains have 44.39 per cent and 29.17 per cent, respectively. In 2015 the Prime Minister issued Decision No. 59 on classifying poor households for the 2016-2020 period. In rural areas, a poor household is defined as one in which the monthly income of each member is less than VND700,000 ($31.40) (previously VND400,000 ($17.90)). In urban areas the figure is VND900,000 ($40.35), after previously being set at VND500,000 ($22.50). Near-poor households in rural areas have individual incomes of less than VND1 million ($45) and less than VND1.3 million ($58.30) in urban areas. Poor and near-poor households are also defined based on the ten following factors: access to healthcare services, health insurance, education level of adults, school attendance of children, household quality, housing area per person, clean water access, clean toilets, access to telecommunications services, and access to information. In rural areas, a poor household is one in which individual monthly incomes are from VND700,000 ($31.40) to VND1 million ($45) and the households lacks at least three of the above factors. A near-poor household in rural areas has individual incomes of VND700,000 ($31.40) to VND1 million ($45) and lacks less than three factors. In urban areas, individual incomes in a poor household are from VND900,000 ($40.35) to VND1.3 million ($58.30) and the household lacks at least three of the ten factors, while in near-poor households incomes are VND900,000 ($40.35) to VND1.3 million ($58.30) and the household lacks less than three of the factors. An average living standard in rural areas is defined as households with individual monthly incomes of VND1 million ($45) to VND1.5 million ($67.30) and from VND1.3 million ($58.30) to VND1.95 million ($87.45) in urban areas. VN Economic Times |
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Social News 17/7 Folk culture of sea and island area discussed  The Feast and Commemoration Festival for Hoang Sa (Paracel Islands) Soldiers is held annually in the central province of Quang Ngai. As many as 38 scientists throughout the country analysed issues concerning the ecology, history and folk culture of people living in the coastal region and on islands - to promote sea tourism and to confirm Việt Nam’s sovereignty over its territory and waters - at a workshop held yesterday in the central city of Quảng Ngãi. Nguyễn Đăng Vũ, director of local Department for Culture, Sports and Tourism, said that for the past 10 years the province has been one of the leading localities in the country in developing sea and island economics and preserving sea folk culture heritage - including hosting the “Lễ Khao Lề Thế Lính Hoàng Sa” (Feast and Commemoration Festival for Hoàng Sa Soldiers) every third lunar month. The province has also hosted various national-level workshops on sea and islands, which shows local authorities’ efforts in preserving and developing local sea and islands culture, he said. Researchers addressing the workshop focused on highlighting local residents’ working processes for thousands of years, which created a diverse folk culture heritage. Local worship and art have much in common with other localities in the central region and the whole country. Quảng Ngãi also has special characteristic folk legends, folk songs and customs. Đặng Ngọc Dũng, vice chairman of Quảng Ngãi People’s Community, noted that generations of local people have fished, grown sea products and traded with foreigners for thousands of years. During the workshop yesterday, Việt Nam Folk Literature and Arts awarded the title of "Folk Artist" to four locals. Short film contest focuses on responsible drinking The Uống Có Trách Nhiệm (7 Film Fest – Responsible Drinking) contest is accepting films from Vietnamese aged 18 and over in the categories of directing and screenplay writing. The National Committee for Traffic Safety organised the contest to raise awareness about drunk driving. It aims to discover talented filmmakers for the film industry. In August, the organiser will announce the seven best directors and seven best screenwriters, who will be paired into seven groups of two consisting of a director and screenwriter. They will learn about filmmaking from talented directors, and then make their own short films about responsible drinking. All of the films will be screened for the public at local cinemas, including CGV, Galaxy and BHD, and on social networks like YouTube, in September. The organiser will choose the winner based on 40 per cent of audience votes and 60 per cent of votes of the judges. The awards ceremony will be held in late October in HCM City. The contest’s production manager is a Vietnamese–American director Charlie Nguyễn, who is popular among Vietnamese audiences for his action and comedy films, such as Dòng Máu Anh Hùng (The Rebel), Để Mai Tính (Fool for Love), and Cưới Ngay Kẻo Lỡ (Love Puzzle), and a newly released rock movie Fan Cuồng (Fanatic). The 7 Film Fest was first held last year, attracting 125 filmmakers who submitted 80 screenplays and 30 films. Participants can register by July 30 at www.7filmfest.com and submit works at info@7filmfest.com or at the office at 10B Nguyễn Thị Minh Khai Street in District 1. VN lawyer sells her paintings to raise money for charity Amanda Huỳnh, a Vietnamese lawyer working in France, sold three of her 40 paintings on Thursday for US$9,000, half of which will be contributed to poor students through her Amanda Foundation. The female lawyer, writer and painter also introduced her book Lam, which features several of her stories together with her paintings, in an exhibition organised in HCM City. The work features stories about her life in France. Amanda Huỳnh was born in Nha Trang and graduated from the HCM City University of Law in 2005. One year after, she studied at the Capitole I University in Toulouse and later received her Ph.D degree in economic law in 2010 at the same school. She became a lawyer in 2011. With her love for art, she has produced 1,000 works of various types and materials. In 2013, she was named Young Talent of Art 3F in Europe. Her artworks are displayed in several exhibitions and galleries in France and Dubai. — Tele-medicine helps promote remote health-care assistance The health department in northern Quang Ninh Province has deployed a tele-health network extending critical healthcare services to rural and remote communities and increase remote connections between doctors and patients. With the aid of Polycom video collaboration technology, including room-based and mobile solutions, the province's Department of Health provides consultations and follow-up care for patients hundreds of kilometres away, and improved training and collaboration for doctors in remote areas. Since introducing the tele-health network, 24 hospitals and community health-care centres across the province now have real-time, face-to-face connectivity with doctors and medical staff, serving larger numbers of patients and ensuring ongoing training for staff productively. "The tele-health network has completely changed our levels of service to communities in the province and reduced the workload pressures on our clinical staff," Vu Xuan Dien, director of the Department of Health, said. "As an example, for diagnosis of more difficult medical cases, patients had to be transferred across large distances from regional hospitals to either the Bach Mai or Viet Duc central hospitals. What tele-health has done is provided us with that vital link to rapidly administer patient care and diagnose early symptoms," he said. He added that where health directives and advisories had to be issued immediately, about 300 employees can now dial into a video conference so knowledge is rapidly transferred. This is especially crucial in managing natural disasters such as floods as well as outbreak of diseases. Information, procedures and protocols can be shared and communicated more efficiently and effectively to ensure the right medical support is provided to the affected areas. In addition, the leadership team no longer has to travel long distances to join important meetings, saving at least 50 per cent on costs and three to four hours per meeting. Video collaboration has also reduced the burden on central hospitals in treating referral and emergency patients. By linking medical experts in Viet Nam and overseas through video collaboration, and improving coordination among central, provincial and district hospitals, remote populations have access to specialist medical services like never before. "In 2015, we held 32 online conference calls involving 7,000 staff in 19 meetings for work-in progress updates and guidelines on the management of outbreak control and prevention. That is about 300 people per meeting on average, and 13 online professional training sessions for over 1,000 staff," he said. "In addition, operating rooms in 10 hospitals have also served for remote consultation, surgery and medical examination, and treatment to our health-care centres. The Quang Ninh Department of Health is proud to have embarked on this tele-health program in Viet Nam to continue serving our communities and employees better," he said. Da Nang keen to become major fishing centre The central city of Da Nang will be developed as one of the six fishing centres across the country, as part of the Master plan on fisheries development to 2020 with a vision towards 2030. The move aims to serve the logistical demands of the city as well as the regional provinces, contributing to the marine economic development of the central region. According to Nguyen Do Tam, Deputy Director of the municipal Department of Agriculture and Rural Development, the centre will include fishing ports and well-equipped logistics facilities. They are expected to create impetuses for the restructure and development of the fishery sector, especially the off-shore fishing operation, in a modern way, thus raising the values of farmed and fished fish in the city as well as nationwide, Tam said. The sector will continue implementing the Government and local policies and mechanisms to provide support to fishermen in building well-equipped fishing vessels with a capacity of at least 400 CV, thus enhancing the efficiency of offshore fishing and product quality and value. Investment will be made to upgrade the Quang Tho fishing port to a modern and effective fishery centre, with the focus on environment protection and food safety. Some 20 billion VND (900,000 USD) will be allocated to help fishermen replace their small, near-coast fishing boats with offshore-fishing vessels. Vice Chairman of the Son Tra district People’s Committee Nguyen Thanh Nam highlighted the contribution of fisheries, saying that the sector has helped the district lead the city in socio-economic development. Hanoi invests $7.2 million to improve population quality More than 160 billion VND (7.2 million USD) will be invested in a project to improve population quality between 2016 and 2020 in the city. The project, which was approved by the People’s Committee, will be carried out across 30 districts and 584 communes and towns of the city in an attempt to help at least 80 percent of local expectant women receive prenatal screenings. Eighty-five percent of infants will be provided newborn screenings to find defects and 50 percent of newborns will also receive screenings for detecting innate defects related to heart disease. The project will also focus on screening, early detection and intervention of birth defects and disorders of transformation or genetic abnormalities during pregnancy and after birth in order to reduce birth defects and improve the city’s population quality. Under the project, 90 percent of local pregnant women would have access to professional advice on the issue. The fund would be used to raise public awareness of the importance of prenatal and newborn screenings and further training for medical officials and staff. Local hospitals and health centres will be provided more equipment to support pre-birth screening, newborn and heart defects. It will also provide hearing screenings for babies aged 0-60 months and Thalassemia (a blood disorder) tests for primary and secondary school students in disadvantaged districts. Hanoi accelerates works on wastewater treatment plants Hanoi is speeding up the construction of the Cau Nga wastewater treatment plant in Hoai Duc district, which will treat wastewater discharged from the craft villages in the communes of Duong Lieu, Cat Que and Minh Khai. Part of the “Master Plan for Environmental Protection of Nhue - Day River Basin by 2020” , the plant is a model of collaboration mechanism between the central government and localities in urban environmental pollution treatment. Works on the plant began in November 2015 in an area of 9,397 square metres. Currently, the project is on an adjustment phase to raise its capacity from 13,500 cubic metres per day to 20,000 cubic metres per day. The plant is expected to be operating on the occasion of the city’s Liberation Day (October 10), according to representatives from the municipal Department of Natural Resources and Environment. Aside from the Cau Nga project, Hoai Duc district is implementing two other waste water plants, namely Son Dong with capacity of 8,000 cubic metres per day and Van Canh with capacity of 4,000 cubic metres per day. Hanoi has focused on investing in waste water and solid waste treatment plants in the suburban areas. Currently, all of facilities lying on the Nhue - Day River Basin are certified to completely treat environmental pollution. The city strives to synchronically construct separate rain water drainage and waste water systems by 2020. Family doctor model to reach more cities, provinces The Ministry of Health plans to expand the family doctor model to 80 per cent of provinces and cities nationwide by 2020, participants heard at an online conference yesterday. "Priority will be given to establishing the family doctor model at the grass-roots level, including in commune health clinics offering family medicine, private family-doctor clinics and family-doctor clinics operating under State-owned general hospitals," Health Minister Nguyễn Thị Kim Tiến said at the event. “The model will provide continuous basic healthcare services to families, individuals and the community in an effort to improve the quality of primary healthcare and to reduce hospital congestion,” Tiến said. She said the model had faced several challenges due to a shortage of funding sources and human resources specialised in family medicine. There are still only a few private family-doctor clinics available as the model has not attracted investment from the private sector. Many people still do not know much about the model and the role of a family doctor in providing primary healthcare for the community. Speaking at the event, Deputy Prime Minister Vũ Đức Đam said the health sector should strengthen the capacity of primary healthcare, including health exams, treatment, consultations and preventive medicine, at health clinics in mountainous, remote, border and island areas. Đam also asked the health ministry to develop the healthcare system at the grass-roots level along with the family doctor model and propose financial resources and priorities for the expansion of the country’s grass-roots healthcare system. At the event, participants agreed that the family doctor model should be integrated with the country’s 14,000 commune health clinic system. The health sector suggested that provinces and cities should pay more attention and call for further investment in expanding the family doctor model based on their existing commune health clinic system. Provincial health departments have been requested to study the status of commune health clinics and local demand to develop a strategy for expanding the model in their localities. Medical universities have also been asked to increase the number of training courses offered on family-doctor medicine. The community should have greater awareness of the family doctor model and its benefits to encourage people to use the services of family doctors. Statistics from the health ministry showed that 336 family-doctor clinics, including six private clinics, have been established in six provinces and cities nation-wide by June 2016. They provide basic healthcare services, including services covered by the health insurance fund. Three years after rolling out the family doctor plan, family-doctor clinics have shown remarkable results in providing services related to health exams and treatment, rehabilitation and patient management for people and families in the community. Some clinics, such as the Thành Công Private Clinic and the Family Doctor Clinic at the District 2 Hospital in HCM City, have received positive feedback from patients and health managers in the application of e-medical records and clinic management software and the regular provision of online consultations. Quang Nam promotes sustainable exploitation of terrestrial crabs Terrestrial crabs (Gecarciudea Lalandii) on Cham Island, in central Quang Nam province has been saved from the brink of extinction thanks to the efforts by a group in charge of protecting and managing crab exploitation since 2013. The 36-member group works under the supervision of relevant authorities. Members of the group are allowed to catch some 50 crabs with large shells measuring 7 centimetres or more every month. The crabs are then labeled with a specific stamp before they are sold to the customers. Strict punishment will be handed out to any restaurant consuming crabs without the stamp. From the outset of this year, roughly 3,000 terrestrial crabs with quality stamps have been sold in the market. Harvest time for the crustaceans takes place from the first month to the seventh month of the lunar calendar. Collection during their breeding season is forbidden. Previously, local fishermen could catch up to tens of kilogrammes of terrestrial crabs a night, however, each kilogram was selling at a low price, according to Tran Cong, head of the group. Tourism development on the island coupled with increasing demand for terrestrial crab have driven up its price, he noted, adding that each kilogram is now sold for 1 million VND 44.8 USD)-1.8 million VND (80.7 USD). In the past, thanks to the steady income brought about by the crabs, crab-catching was once prolific among local residents, resulting in a drastic fall in the crab population. Le Vinh Thuan, deputy director of the Management Board of Cham Island’s Marine Protected Area, said that the group has made great contributions to protecting the terrestrial crabs, helping maintain biodiversity in Cham Island’s world biosphere reserve. Terrestrial crabs are dark in colour and have long legs and short pincers. The crustacean is nocturnal and spends most of the day hiding in burrows, which are 400 metres above sea level. Hà Nội to crack down on dyke violations The Hà Nội People’s Committee has instructed the city’s Department of Agriculture and Rural Development to deal with dyke violations strictly. The order followed a Water Resource Directorate (WRD) report which cited widespread dyke violations in the capital city. There were 506 such violations since the beginning of last year. Only 45 of those cases have been resolved. Most of the dyke violations involved the construction of houses and workshops, illegal sand exploitation and storage of building materials, and overloaded vehicles travelling on dykes. The violations occurred primarily on the Hồng and Đáy Rivers in the Tây Hồ, Long Biên, Quốc Oai and Ứng Hòa Districts. In the latest incident, the authorities of Long Biên District asked Nắng Sông Hồng Joint Stock Company to stop its activities on the banks of the Red River for violating the city’s flood irrigation corridor rules. The company was also ordered to demolish all illegal construction and had to pay an administrative fine levied by the city’s dyke management agency in 2012. However, they ignored the 2012 warning and turned the leased land into a recreation and cuisine centre, Đời sống & Pháp luật (Life& Law) newspaper reported. Punishment currently isn’t strict enough to prevent dyke violations from continuing, according to the Water Resource Directorate. The Directorate called on relevant agencies and local authorities to take drastic measures to improve the situation because violations reduce dyke effectiveness during the rainy season. Dong Nai seeks regional traffic link development The southern province of Dong Nai has proposed the Government, the Ministry of Transport and other relevant bodies develop numerous regional transport links. Vice Chairman of the Dong Nai People’s Committee Tran Van Vinh highlighted the geographic position of the province as a gateway to Ho Chi Minh City and the southern economic hub, saying that the proposals aim to serve and ensure safety in transportation of goods and passengers. The province proposes that the Government extends the Ben Thanh – Suoi Tien metro line in Ho Chi Minh City by 4.7 km to the Vung Tau crossroads in Bien Hoa City, that has a population of over 1 million people and houses industrial zones, according to Vinh. The extension will facilitate local residents’ daily travel between Bien Hoa and Ho Chi Minh City, thus reducing traffic jams at the gateway to Ho Chi Minh City, Vinh said. In a recent working session with Deputy Prime Minister Trinh Dinh Dung, the province proposed the Government upgrade the section of National Road 1 through Dong Nai to four lanes. It called for investment to build a 6.2km bypass of the National Road 1 section through Long Khanh commune. The locality also called on the Government to accelerate the implementation of the projects connecting to Long Thanh international airport. They include Dau Giay – Phan Thiet highway, Bien Hoa – Vung Tau highway, Ho Chi Minh City belt road 3 section and the Thu Thiem – Long Thanh airport urban railway. Mekong Delta region’s master plan to be reviewed A master plan and development scenarios for the Mekong Delta region will be reviewed to suit the integration trend and adapt to climate change, stated Deputy Prime Minister Vuong Dinh Hue during a conference on July 12, as part of the ongoing 9th Mekong Delta Economic Development Forum (MDEC) in Hau Giang province. The Deputy PM, who is also head of the Steering Committee for the Southwestern Region, said that the move aims to create a closer regional connection in socio-economic infrastructure and response to climate change. He asked sectors and scientists to seek sustainable growth mechanisms for the Mekong Delta region, with practical, accurate and specific studies on their impacts on a number of farm products in the region amidst integration and climate change conditions. According to Nguyen Quoc Viet, deputy head of the committee, Vietnam’s international integration creates both opportunities and challenges to the region. Along with climate change, sea level rise, saltwater intrusion and a number of emerging problems have pressured the region during its integration, he held. He emphasised the need for serious and comprehensive assessment of the region’s capacity in integrating, so as to design active plans that can grasp chances and overcome challenges to boost rapid and sustainable growth. To this end, the region should deal with a series of problems, including the restructuring of agriculture towards modernisation and large-scale production by applying advanced technology to raise productivity, quality and competitiveness. Lu Van Hung, Chairman of the Hau Giang People’s Committee, expressed his hope that more favourable conditions will be created to help investors study investment policies and key projects of regional localities. The conference, themed: “Mekong Delta – Active Integration and Sustainable Development,” is a chance for foreign and domestic businesses to meet and set up business partnerships. It also gives opportunities to management officials, scientists and investors to discuss measures to remove obstacles for the region’s development and integration. The Mekong Delta comprises Can Tho city and 12 provinces – Long An, Dong Thap, Tien Giang, Vinh Long, Tra Vinh, Ben Tre, An Giang, Hau Giang, Soc Trang, Bac Lieu, Ca Mau and Kien Giang. HCM City to keep overloaded vehicles off 3 bridges The HCM City Department of Transport on Monday set up weighstations at three bridges to deter overloaded vehicles from crossing them. Situated on either side of Giồng Ông Tố and Kỳ Hà 1 bridges in District 2 and Ông Lớn Bridge in District 7, they work round-the-clock, automatically detecting overloaded vehicles and transmitting the data to computers. Overloaded trucks will be stopped for weighing again and issued with fines. An official at the Transport Inspection Team No.6 responsible for Ông Lớn Bridge said the weighstation would help effectively monitor overloaded vehicles. Bạc Liêu set to restructure fisheries sector The Bạc Liêu Province People’s Committee has approved a plan to restructure the province’s fisheries sector, aiming to increase the average annual income in the fisheries sector to VNĐ92.3 million (US$4,100) per person by 2020, up 1.4 times against last year. Black-tiger shrimp, white-legged shrimp and sea crabs are the province’s key aquatic species. The province plans to breed blue-legged spawn, dragon fish, marble goby, clams, oysters and other aquatic species. Models of farming aquatic species meeting global and Vietnamese Good Agricultural Practices (GAP) standards will be expanded. Under the plan, the Mekong Delta province will have an annual aquaculture output of 370,000 tonnes, including 147,000 tonnes of shrimp by 2020. The area devoted to breeding brackish-water shrimp will increase from 127,450 ha last year to more than 131,750 by 2020. The plan also targets to increase the number of fishing boats from 1,264 last year to 1,450 fishing boats, including 650 off-shore fishing boats, by 2020. Bạc Liêu will gradually reduce catching fish near shore and develop off-shore fishing, targeting a catch of 120,000 tonnes of fish and other aquatic species by 2020. The province plans to develop fishing logistics services on sea and at fishing ports, and use advanced techniques in fishing and storage in order to reduce post-harvest losses in fishing from the current 20 per cent to 10 per cent by 2020. Storm shelters, including Cái Cùng, Nhà Mát and Gành Hào storm shelters, will be built for fishing boats. The plan will cost more than VNĐ6.4 trillion (US$290 million) from the Government budget, provincial budget and other sources. Bạc Liêu, one of the country’s largest shrimp producers, produces shrimp of high quality. Besides the industrial shrimp farming model, the province has other shrimp farming models, including intensive and semi-intensive shrimp farming, organic shrimp farming in submerged forest areas, and a model of rotating rice-shrimp and other aquatic species on the same field. The province has about 30,500 ha of rice-shrimp rotating area, according to the provincial People’s Committee. The model of rotating shrimp-rice cultivation on the same field in Bạc Liêu has helped farmers have stable incomes and improved environmental protection. Many farmers in Hồng Dân District, for instance, said they had not suffered losses after applying the model of rotating shrimp-rice cultivation. Farmer Trần Văn Hạnh in Hồng Dân District said his family’s income was stable and the lives of his family had improved since he rotated one rice crop and two shrimp crops a year. “This model has helped improve shrimp cultivation. Shrimp rarely have disease and grow rapidly,” he said. Lương Ngọc Lân, director of the province’s Department of Agriculture and Rural Development (DARD), said Bạc Liêu would focus on developing aquaculture and aim to turn the province into the country’s capital for industrial shrimp farming. Bạc Liêu will also build roads, water supply, sewage and power lines for 12,000 ha of intensive and semi-intensive shrimp farming areas. To attract investors, infrastructure will also be built in shrimp-fry producing areas. Bạc Liêu plans to breed more than 120,000ha of shrimp this year. To meet this year’s target, the DARD has told farmers to focus on releasing shrimp fry into ponds for breeding this month. Dương Thành Trung, chairman of the province’s People’s Committee, has told DARD to urgently prepare conditions for clean aquaculture models and inspect shrimp fry quality, veterinary medicine and animal foods. The DARD also was asked to draft criteria for farms that produce aquatic species fries. Bạc Liêu fishermen have caught more than 56,720 tonnes of fish and other aquatic species this year, up 103 per cent against the same period last year. Trần Văn Bửu, owner of a fishing boat in Đông Hải District’s Gành Hào Town, said there were fewer rough seas than in previous years, so fishing was good. “If diesel oil prices remain stable, fishermen will have profits,” he said. Most fishing boat owners in Bạc Liêu borrow money from fish traders to buy diesel oil and ice and pay hired fishermen for their fishing trips. Mai Thành Học, a fishing boat owner in Gành Hào Town, said the cost for fishing trips was high so fishing boat owners must borrow loans. In addition, fishermen can only sell their catch to traders and cannot sell directly to seafood processors. Nguyễn Trường Hận, head of the Đông Hải District Agriculture and Rural Development Bureau, said: “This year, there is favourable weather, declining fuel prices and stable seafood prices, so fishermen have had profits.” He said that Đông Hải was seeking more investment for infrastructure to develop fishing and build seafood processing plants. New decree to regulate exhibition management A draft decree by the Department of Exhibition, Photography, and Fine Arts has proposed new regulations on exhibition management of cultural activities. The decree was discussed at a conference on Tuesday in HCM City, with 50 representatives from the departments of Culture, Sports and Tourism, and Propaganda and Training from 15 provinces and cities, including HCM City, Đà Nẵng, Cần Thơ, and Lâm Đồng. Vi Kiến Thành, head of the Department of Exhibition, Photography and Fine Arts, said the Prime Minister was expected to approve the decree in October. The decree focuses on exhibiting items and works related to culture, arts, tourism and sports in Việt Nam and abroad. It includes regulations on the government’s role in exhibition management, licensing for organising exhibitions inside and outside the country, and themes of exhibitions. It proposes that provincial People’s Committees be in charge of exhibition management in localities, and give licences for exhibition programmes. Participants at the conference pointed out that exhibitions involving foreign factors need the approval of People’s Committees. Võ Văn Kiệt, a representative of the Tây Ninh Province’s Department of Culture, Sports and Tourism, said: “The People’s Committees have many works and papers to complete, so issuing licenses should be given to the departments of Culture, Sports and Tourism.” “If there was an exhibition related to foreign individuals or oganisations, the department would submit papers to the People’s Committee for approval,” he added. “The opinions collected from experts and the public would be considered before the department makes final revisions on the draft plan and submits it to the Prime Minister,” said Thành from the Department of Exhibition, Photography and Fine Arts. “Exhibitions are an effective way to promote Vietnamese culture, arts, sports and tourism to local people and foreigners,” he said, adding that the number of exhibitions in the country had increased year by year. According to the Department of Exhibition, Photography and Fine Art’s statistics, there were 499 exhibitions held in Việt Nam in 2013, 589 in 2014 and 594 in 2015. Free wedding photos, hair styling offered for people with disabilities Brides and grooms are typically not shy about posing for their wedding photos, as they know the memories can last a lifetime. But for people with disabilities, appearing before the camera can be somewhat daunting. Last year, Phùng Tuấn Dũng, an alumnus of the HCM City University of Law, set up a five-member team of photographers to offer free wedding photos for the disabled. Several part-time members also do free makeup and hairstyling for the couples. While many soon-to-be married couples celebrate at luxury hotels and restaurants, Dũng’s team often brings bread, cake and tea to his photo shoots at less glamorous sites. At least 100 wedding gowns and áo dài (traditional female tunic and trousers) as well as two wedding bouquets for long-term use have been donated to the team. “I’ve even lent my own business suit to the grooms,” Dũng said, adding that the couples are free to arrange their time and choose a photo shoot venue. “I ask for photos of the couples in advance so I can prepare the styling, select wedding dresses, and think about the best shot angles.” Dũng’s team often visits a vocational school for the disabled to offer free photo services. “We initially planned to have only a few photos of our wedding, but we didn’t expect to have such a big, beautiful wedding album,” one student said. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNE |
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Article 3
Will Vietnam restructure the central bank? For the last ten years, the State Bank of Vietnam (SBV) has said it would restructure its operations.
The government has instructed SBV to continue the plan on restructuring the banking system in 2016-2020. But the restructuring has not been implemented, though SBV once drew up a plan years ago. Determining the key tasks of the State Bank raised controversy then. The previous Law on the State Bank stipulated that the State Bank’s operation aims to stabilize the currency, help ensure the safe operation of the banking system, and foster socio-economic development.
Later, one more task was added: the State Bank’s operation aims to ensure the safety and efficiency of the nation’s payment system. As many different goals were set up for the central bank, analysts emphasized that it was necessary to define the priority order of the tasks. At the international workshop discussing the role of the State Bank held in March 2006, experts said that there were two major goals – stabilizing the currency value and ensuring the safe operation of the banking system and the nation’s payment system. Of these, stabilizing the value of the local currency must be the most important task. Meanwhile, the task of fostering the socio-economic development was not found in the list of priority tasks suggested by international experts. The role of the State Bank in ‘fostering the socio-economic development’ is understood as using credit as leverage for economic growth. However, this is not what Vietnam was encouraged to do. Lars Nyberg, deputy governor of the Swedish central bank,10 years ago emphasized that monetary policy could not have direct impacts on the national economy long-term development. Analysts then warned about excessive optimism when abusing the loose monetary policy to boost economic growth and create jobs, saying that the loose policy may lead to a credit boom and start a period of inflation escalation. And this happened : banks continued pumping capital into the economy with credit growth rate sometimes reaching 53 percent a year, and Vietnam saw escalating inflation rate which lasted until 2011. The problems which were mentioned 10 years ago now still exist. SBV has to implement tasks assigned to it by the National Assembly. It needs to help control the inflation rate at below 5 percent, cut the lending interest rate, stabilize the dong/dollar exchange rate, increase the forex reserve, ensure credit growth at reasonable rates to help boost GDP and join forces with a fiscal policy to issue government bonds. This means that the State Bank still is burdened with too many duties which may make it perplexed. TBKTVN |
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Article 2
Two NA delegates dismissed in recent days Another National Assembly (NA) delegate has been dismissed after being found to hold dual citizenship, bringing the total number of delegates in the new legislature to 494 as preparations continue for its first gathering on July 20.  Ms. Nguyen Thi Nguyet Huong. Ms. Nguyen Thi Nguyet Huong, Chairwoman of Vietnam Investment Development (VID) - a private concern specializing in developing industrial parks in the north - was dismissed on July 17. Born in 1970 in northern Nam Dinh province, Ms. Huong has dual citizenship and was therefore ineligible to stand under Vietnamese law, according to the National Election Council. She was a delegate for Hanoi in the 13th NA and was recently returned for the 14th NA in the 2016-2021 term . The National Election Council also dismissed NA delegate for Hau Giang, Mr. Trinh Xuan Thanh, who is also Deputy Chairman of the Mekong Delta province, on July 15 after he was found to be responsible for poor management at a State-owned enterprise some years ago. VID has invested in ten industrial parks in Hung Yen, Ha Nam and Hai Duong provinces in the north. Ms. Huong is also Chairwoman of TNG Holdings Vietnam, the investor in several urban area and apartment projects in Hanoi. Ms. Huong’s husband, Mr. Tran Anh Tuan, born in 1969 in central Ha Tinh province, is currently Chairman of Maritime Bank. In 2011 Maritime Bank became a strategic shareholder in Maritime Securities Incorporation (MSI), which was previously Standard Securities and was licensed in 2008. Ms. Huong was reported to have sent a proposal that she “resign from her role as NA delegate.” Mr. Thanh, meanwhile, was forced to “take responsibility” for losses of some VND3.2 trillion ($142 million) during his days at the helm of the PetroVietnam Construction Corporation (PVC), the Party Central Committee’s Inspection Commission announced on July 11. The new NA for the 2016-2021 tenure will gather for its first session on July 20, which is expected to last for ten days. High on the agenda is voting for key leadership positions, including President, Prime Minister and Chair of the NA, among others. VN Economic Times |
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BUSINESS IN BRIEF 18/7 Sapporo expands target market in Vietnam  Japanese brewer Sapporo Holdings is launching a cheaper beer brand later this month, marking its expansion from the high-end segment of the Vietnamese beer market. According to the Asian Nikkei Review, the new label will be launched on July 28 and is expected to be sold for between VND13,000 and 15,000 (US$58 and 67 cents) per 330 ml can at volume retailers, around 19 cent cheaper than the company’s mainstay Sapporo Premium lager. The new product will target the middle class. In Vietnam, food stands and large cafeteria-style restaurants sell mid-to-low-price brews that account for the majority the market. The company apparently aims to sell some 150,000 cases of the new product this year. Sapporo has been exclusively targeting the high-end segment with the Sapporo Premium label. This segment has recently seen increasing competition, with Vietnam Brewery Limited Company (VBL)’s Heineken, AB Inbev’s Budweiser, Carlsberg Vietnam’s recently launched Tuborg and state-run Sabeco’s Saigon Special. Competition is tough in the lower-priced segment, too. Low-cost beers in Vietnam, with brands such as Sabeco’s 333 and Saigon or Habeco’s Hanoi beer, and the only foreign player, VBL’s Tiger, all sell at about US$55 cent per 330 ml can or lower. Sapporo launched Sapporo Vietnam as a joint venture with state-run tobacco company Vinataba in 2010. Last year, Sapporo Holdings bought the partner’s stake to turn Sapporo Vietnam into a wholly owned subsidiary. The company sells the Sapporo Premium beer brand it manufactures at its Long An factory. The company reported growth in sales in 2015. Sapporo’s plan in Vietnam, according to its 2015 annual report, is to continue expanding and establish its subsidiary as a base for strengthening exports to the region. In the conference call with general manager of the investor relations section regarding Sapporo Holdings’ results in the first quarter of this year, director Shinichi Soya said the growth of Vietnam’s premium beer market is curbed “due to increased liquor taxes and other factors and competition in the market is also becoming intensified.” “We made our presence in Vietnam as a bridgehead whereby the Sapporo brand can penetrate Southeast Asia as a premium brand. Currently, we are still more in the phase of gaining recognition rather than securing profit,” he said. Data by released by Vietnam Beer-Alcohol-Beverage Association showed that 3.4 billion litres of beer was consumed in Vietnam in 2015, up 10% on-year. The growth rate of the beer sector in the last few years is lower than in the 2005-2010 period. The association forecasted that in 2016 the freshly signed free trade agreements will result in tariffs being lifted on many products, including beer, which is going to pose a big challenge for local companies. Garment association forecasts post-Brexit export difficulties According to the Vietnam Textile and Apparel Association, textile and garment businesses will meet with difficulties from the fourth quarter this year under the impact of Britain’s exit from the EU. Specifically, the pound and the euro’s depreciation will affect buy and sale prices of importers and the price difference between currencies will be lower than before. In addition, Brexit is said to cause some purchasing power changes in the EU and Britain. The association advised domestic businesses who have been exporting to Britain and the EU to boost exports to traditional markets including the U.S. and South Korea and broaden their business to new markets such as Russia and Eastern Europe. This aims to limit Brexit influences to their production and trading. Businesses should quickly build local and foreign supply chains to diversify lines of products for new markets, the association added. Consumers cautioned to use credit cleverly Customers must be cautious when seeking consumer loans, Viet Nam Competition Authority officials said during a meeting in Ha Noi yesterday. The meeting was told that complaints related to consumer credit account for more than 80 percent of all complaints that the Ministry of Industry and Trade's authority records in the domestic banking and finance sector at present. Trinh Anh Tuan, deputy head of the authority, said consumer credit is a service through which customers borrow money from certain companies for consumer purposes. Compared with corporate credit, consumer credit is characterised as smaller loans given to a larger number of customers, with higher service costs and more risks. Ho Tung Bach from the authority's consumer rights protection department said in Viet Nam, customers usually seek consumer credit to buy items such as motorbikes, TVs, refrigerators, computers and telephones. Compared to banks, consumer credit service providing companies disburse money quickly with almost no tight requirements about the verification of customers' demands and financial situation. Many financial firms currently agree to give customer unsecured loans within only 10 to 15 minutes, he said. Thus, along with the rapid growth of consumer credit, many firms harm customers with intentional deeds, Bach said. Typical actions are: providing insufficient and confusing terms of transaction to customers, cheating customers about interest rates, and imposing unreasonable charges for customers in case they infringe contracts. Some firms threaten customers and their relatives, and endanger their prestige while trying to reclaim debts. Dinh Thi Thanh Nhan from the Ha Noi University of Commerce said Viet Nam lacks separate laws to regulate consumer credit services, while lending regulations generally applied for banks and financial firms have little impact on these activities. The Civil Code 2015 stipulates a ceiling interest rate for consumer lending at 20 per cent per year. But many companies are advertising the service with rates of between 20 per cent and 30 per cent. Many firms even ignore the ceiling rate while making contracts and set rates of up to 60 per cent, and occasionally even over 80 per cent, according to Nhan. "Disputes, although emerging over small-value contracts, often cause serious consequences for customers' finance, health and honour," said Trinh Anh Tuan, deputy director of the Viet Nam Competition Authority. "They also negatively affect the consumer credit market, which needs sustained development," he told Phap Luat Viet Nam (Viet Nam Law) online newspaper. Experts said the authorities must build a legal framework to boost transparency in consumer credit operations, and customers should improve their knowledge to use the services more "cleverly and responsibly". Phan The Thang from the customer rights protection department suggested that customers should study consumer credit services of banks before considering similar services of financial companies. Phap Luat Viet Nam reported that consumer loans in Viet Nam totalled US$10.4 billion, equivalent to 6.6 per cent of the country's gross domestic product, as of August 2015. The State Bank of Viet Nam reportedly said that consumer loans grew on average by 20 per cent per year over the last seven years, and around 15.8 million people are now potential customers of consumer credit providing companies. Cement exports on the rise Local and export sales of cement and clinker hit 38.77 million metric tons during the first half of this year, up 12.4% against last year’s same period, meeting 51.01% of this year’s plan, according to latest statistics from the Ministry of Construction. Of the figure, domestic consumption rose 14.8% to 29.92 million metric tons. This year’s consumption plan is within reach with 29.92 million metric tons out of 59-60 million metric tons set for this year consumed. Despite a number of difficulties, cement and clinker exports increased slightly by 5% to 8.85 million metric tons in six month as a result of domestic businesses’ greater efforts to boost exports. Cement exports in June alone were estimated at 1.5 million tons, up 17.2% higher than the same month a year earlier. Hanjin Shipping unloads shares in Vietnamese terminal Financially troubled Hanjin Shipping Co. has sold its 21.33 per cent stake in Tan Cang Cai Mep International Terminal (TCIT) in southern Vietnam. In a filing to the Korea Exchange on July 12, the company said that it sold its shares to affiliated company Hanjin Transportation for KRW22.9 billion ($20 million). TCIT is a joint venture of Saigon Newport Corporation with Hanjin, Mitsui OSK Lines, and Wan Hai. According to the company website, TCIT handled 979,221 twenty-foot equivalent units (TEUs) in 2015, up 6 per cent on-year. In 2015, the trading activity between Vietnamese enterprises and overseas partners grew by 12 per cent on-year. TCIT continued to maintain the biggest market share in the Cai Mep-Thi Vai port complex in the southern province of Ba Ria-Vung Tau. In 2015, it accounted for around 67 per cent of the area’s total throughput volume, compared to runner-up Cai Mep International Terminal (CMIT)’s 376,062 TEUs accounting for 26 per cent, and Tan Cang-Cai Mep Thi Vai Terminal (TCTT)’s 101,190 accounting for 7 per cent. In the first three months of 2016, TCIT handled 243,000 TEUs, up 4 per cent compared to the same period last year. In 2016, TCIT has made investments to upgrade its capacity to serve more mother vessels and expects to surpass the number of 1.1 million total throughput TEUs in 2016. There are seven terminals in the Cai Mep-Thi Vai area. Besides TCIT, CMIT and TCTT mentioned above, there are Saigon International Terminals Vietnam (SITV), SP-PSA International Port (SP-PSA), Tan Cang – Cai Mep Container Terminal JSC (TCCT), whose throughput is counted together with TCIT, and SP-SSA International Container Services Joint Venture (SSIT). Due to weak infrastructure that causes transportation to be slower and less convenient, the terminals have trouble competing with ports in Ho Chi Minh City and Binh Duong, and many of them have been operating at a lower-than-designed capacity. Earlier this month, the Ministry of Transportation announced measures to increase the operational efficiency of ports in the area, such as dredging to facilitate larger ships and accelerating the construction of nearby roads. As of the end of 2015, Hanjin Shipping’s total debt reached KRW5.6 trillion ($4.8 million). The company plans to raise $400 million from selling assets in order to restructure its debts. BSR picks up $1.3 mln from PV Building IPO The PetroVietnam Building and Commercial Joint Stock Company (PV Building) conducted its first IPO on July 12 at the Hanoi Stock Exchange (HSE). The Binh Son Refining & Petrochemical Company Limited (BSR) had previously stated that it was to cut its stake in PV Building to 51 per cent from 96.53 per cent. There were a total of 7.9 million shares publicly offered, equal to 45.53 per cent of PV Building’s charter capital, at an initial price of VND12,200 ($0.6) per share. On July 12 a total of 19 individual investors bought 2.325 million shares at the initial price, accounting for 29 per cent of the total shares offered, according to HSE. BSR received VND28.4 billion ($1.3 million) from the sale and now holds 67.5 per cent of PV Building. Reducing its stake in PV Building to 51 per cent is part of BSR’s preparations for its equitization, according to CEO Tran Ngoc Nguyen. “The sale is to restructure BSR while PV Building becomes a listed company,” he was quoted as saying. PV Building operates in three main sectors: producing and selling cement and agricultural packaging products, selling granulated prolypropylen (PP) and polyethylene (PE), and providing management services for real estate companies and restaurants. It holds a large market share in the packaging sector and has been a strategic partner of BSR. Not only does it provide the Dung Quat Oil Refinery with 12,000 to 14,000 tons of PP annually it also provides 100 per cent of three-surface PE bags for the refinery’s packaging products. “PV Building’s IPO will not have any negative impact on the company’s operations,” Mr. Nguyen said. “It will actually have a positive impact, especially on Dung Quat’s expansion plans in the coming years.” According to a stock analyst at Maritime Securities Incorporation (MSI), “the PV Building divestment is expected to have a positive impact on the equitization process of BSR.” After divesting from PV Building and other companies, BSR will be able to focus on its main operations, he added. PV Building was established in March 2009 and has three shareholders: BSR with 96.53 per cent, the Cam Thanh Guest House of the Quang Ngai Province Committee Office with 3.14 per cent, and individual shareholders with 0.33 per cent. Its total profit is forecast to increase 30 per cent annually, with after-tax profit in 2015 at VND10.8 billion ($491,000), according to the company’s report. After acquiring the Dung Quat Packaging Company from BSR in 2014 its charter capital increased from VND55 billion ($2.5 million) to VND175 billion ($8 million). Vietnam’s first-ever car market opens in HCM City Vietnam’s first-ever car market, Sago Auto opened at the intersection of Nguyen Dinh Chieu and Mac Dinh Chi in Ho Chi Minh City’s District 1 on July 13. The venue covering on an area of nearly 5,000 m2 displays about 100 4-7seat vehicles. Buyers can find used cars and new cars and the car reviews and information at the fair. Sellers can hire a stand at a cost of VND100, 000 (US$4.5) a day to showcase their cars. The car market creates advanced conditions for direct purchases between the buyer and the owner. Payment is implemented via a bank transfer in which buyers will send money to an escrow account. After the car ownership and documents related to the vehicle have been transferred to the buyer, the money will then be wired to the seller’s bank account. Chemical use seen affecting Vietnam farm exports Vietnam may have a hard time boosting outbound sales of farm products in the coming time as a number of chemicals currently in use in the agricultural sector are banned or restricted by importing countries. Industry associations warned against the overuse of chemicals in farming at a seminar held by the Ministry of Agriculture and Rural Development in HCMC last week to discuss ways to improve the competitiveness of the sector to benefit from free trade agreements (FTAs). The associations said many countries have forbidden or limited the use of many chemicals and substances for farming but they are still allowed in Vietnam. Therefore, Vietnamese farming products could not be exported to these markets. According to the Ministry of Agriculture and Rural Development, Vietnamese agricultural products will see more opportunities in traditional markets like the U.S., the EU and Japan owing to competitive prices and the FTAs which the country has signed. But these markets are likely to set high technical standards for some products, including coffee, rice, pepper and cashew nuts. Some enterprises attending the seminar complained that they had already encountered such technical barriers to trade. A local farm exporter said it could earn some tens of millions of dong from a successful export shipment but would incur billions of dong in losses if a shipment is returned. The company called for food regulators to quickly review and revise the list of chemicals permitted for use in farming in line with international practices to help local exporters avoid losses. Vietnam has already signed eight FTAs and is now in the process of ratifying and negotiating eight other free trade pacts. Vinafood 2 to produce fragrant rice for export to U.S. Vietnam Southern Food Corporation (Vinafood 2) is moving forward with a plan to develop large-scale fragrant rice fields to realize a target of exporting at least 100,000 tons to the U.S. in the coming years. Le Minh Truong, deputy general director of Vinafood 2, said the corporation has joined hands with cooperatives in Thanh Phu District in the Mekong Delta province of Ben Tre to produce high-quality fragrant rice for export to choosy markets like the U.S. Vinafood 2 looks to produce high-quality fragrant rice on an area of 7,000 hectares. The Post-Import Plant Quarantine Center I under the Plant Protection Department under the Ministry of Agriculture and Rural Development said all products imported into the U.S. and the European Union (EU) must meet their requirements for residues of plant protection chemicals, or the maximum residue limits (MRL). In addition, Vietnam must meet the traceability criteria for farm products shipped to those choosy markets. Competent authorities of the importing countries will trace the origin of a product if they find food safety problems. Statistics of the Vietnam Food Association (VFA) showed that the ratio of Vietnam’s high-quality white rice exports dropped from 36% in 2010 to nearly 28% last year. According to VFA, Asia remains Vietnam’s largest rice importer with 59% of the total shipments in 2010 and 74.5% in 2015. As the EU and the U.S. account for a small proportion of Vietnam’s rice exports, the country still has room to boost exports to these markets, especially when the Trans-Pacific Partnership (TPP) agreement and the free trade agreement between Vietnam and the EU (EVFTA) come into force. VFA noted that Vietnam has not been unable to produce a large volume of high-quality rice due to a lack of large-scale farming. Therefore, companies are encouraged to collaborate with farmers through cooperatives to sign contracts to consume products for them, provide technical support for cultivating fragrant rice and tracing product origin. Shrimp farming households get ASC certification International certification body Control Union has granted Aquaculture Stewardship Council (ASC) certification for 52 shrimp farming households that own nearly 89 hectares of extensive shrimp farming in Bac Lieu Province as announced on July 12 by the World Wildlife Fund (WWF). These households are taking part in a responsible shrimp farming and consumption model organized by Thanh Cong 1 Farmer’s Group and Au Vung Export Seafood Processing Joint Stock Company. This is the first time the household members of Thanh Cong 1 have got the certification. ASC certification has been introduced in Vietnam since 2014 and applied to large-scale farms before it was issued for the shrimp farming households in the Mekong Delta province. WWF said in a statement that some 19 enterprises have received ASC certification. They can produce only 18,600 tons of shrimp meeting ASC’s standards a year, accounting for only 3% of Vietnam’s total shrimp output, so the volume is not enough to meet the market demand. Au Ngoc Vung, chairwoman of Au Vung Co, said there is a huge demand for extensive shrimp products so the company aids farmers in infrastructure and pledges to purchase the shrimp volume meeting international standards for export like ASC. Huynh Quoc Tinh, manager of the Sustainable Aquaculture Program at WWF Vietnam, said WWF hopes to sign more contracts to affiliate with enterprises in shrimp farming and consumption like the contract with Au Vung and Thanh Cong 1. ASC is an independent, non-profit organization with the primary goal to manage global standards for responsible aquaculture. It aims to transform the world’s seafood markets towards greater responsibility, and support best practices in environmental-social responsible aquaculture. This includes increasing the availability of certified, responsibly-sourced seafood on the market, and promoting the use of the ASC logo. Seafood products with the ASC quality mark come from producers that demonstrably respect the environment, and adhere to guidelines pertaining to food additives and social conditions. VAMC buys VND4 trillion in bad debt in H1 Vietnam Asset Management Company (VAMC) had acquired bad debts worth only VND4 trillion (US$179.4 million) in the year to June 20 though it is tasked with buying some VND45 trillion of debts via the issuance of special bonds this year by the State Bank of Vietnam (SBV). Nguyen Quoc Hung, chairman of VAMC, told the Daily that since its establishment, the firm has purchased VND248 trillion of original debts and issued about VND212 trillion of special bonds. He said the lower-than-expected bad debt acquisitions in the first half resulted from a low bad debt ratio in the banking system. The existing regulations require credit institutions with a bad debt ratio of more than 3% to sell debts to VAMC. At present, the bad debt ratio stands at 2.62% at credit institutions and most of them have handled bad debts themselves. Therefore, they sold fewer debts to VAMC. Hung said that debt acquisitions by VAMC are made on schedule and that the firm has focused on bad debt settlements from early this year. Next year, the debt trading company will reduce debt buying. He said VAMC is considering buying bad debts from some credit institutions that have conducted restructuring plans approved by the central bank. These restructuring plans mention bad debt sales to VAMC as a way to clean the balance sheets of the banks. This is in accordance with the SBV’s Decision 618 dated April 12, 2016 which said VAMC should acquire bad debts mortgaged by real estate or shares of credit institutions to support their restructuring. Many of 41 credit institutions that sold debts to VAMC are expected to submit documents to extend the risk provision period for VAMC bonds to 10 years. They are businesses which have carried out restructuring plans but encountered financial problems caused by risk provisions for VAMC bonds. Interbank interest rates for dong stay low Interest rates for Vietnam dong loans on the interbank market have stayed low while the exchange rate between the dong and the U.S. dollar has moved in a narrow range. Last week, the annual overnight rate dipped 0.31 percentage point to 1.46% while the one-week rate skidded 0.25 percentage point to 1.74% per annum and the two-week rate edged down 0.22 percentage point to 1.98% per year. Interbank rates are expected to move sideways or increase slightly while liquidity is seen ample in the coming time. The State Bank of Vietnam (SBV) last week issued 14-day treasury bills worth a combined VND25.9 trillion while VND4.9 trillion of bills fell due, leaving a net withdrawal of VND21 trillion from the market. Open market operations (OMO) saw no transactions last week and there have not been net withdrawals or net injections for the seventh week in a row. Last week, foreign investors bought VND1.42 trillion of Government bonds and sold VND472 billion of debt, leaving net purchases of VND947 billion. In the year to date, foreign investors’ net purchases of G-bonds have totaled VND15.19 trillion. Bond coupons for almost all tenors have inched up. The SBV on July 12 announced the average daily interbank exchange rate between the two currencies at VND21,862 per dollar. The greenback was sold for some VND22,304 at commercial banks, down VND9 compared to previous days. The dollar selling price has hovered in a range of VND22,299.5 and VND22,300.5 in recent times. On the interbank market, the interest rate for overnight dollar loans stood at 0.4% per annum and the annual rates for the one-week tenor at 0.5%, the two-week tenor at 0.6%, the three-week tenor at 0.7%, the one-month tenor at 1% and the three-month tenor at 1.5%. Dollar supply has been stable and commercial banks have held on to the greenback. A bank told the Daily that mild volatility of the dong-dollar exchange rate in the past two weeks indicates that Britain’s vote to leave the European Union has not left significant short-term impact on Vietnam’s forex market. A recovery of world financial markets helped improve investor sentiment and restrict dollar hoarding in Vietnam. Mekong Delta needs to make clear policy incentives for investors Mekong Delta provinces should make clear policy incentives if they want more investors to come, instead of just promoting the region as a place with high agricultural potential, heard a conference in Hau Giang Province on July 11. Lu Van Hung, chairman of Hau Giang, told the conference on investment potential in the province that Mekong Delta provinces, including Hau Giang, have advantages in rice and seafood farming. The Mekong Delta makes up 47% of the country’s paddy growing area, 56% of total rice output and 90% of total rice export, and is a key exporter of seafood in Vietnam. Nguyen Minh Nhut, project manager at German beer producer Bitburger, told the conference that he wants to know Hau Giang’s incentives and support for enterprises. Hung did not directly answer Nhut’s query but said relevant agencies in the province will meet the company to discuss. Speaking to the Daily on the sidelines of the conference, Nhut said it is essential that provinces make clear what they will support, such as land use and rent, and infrastructure. Nguyen Phuong Lam, deputy director of the Vietnam Chamber of Commerce and Industry (VCCI) in Can Tho City, said the Mekong Delta has strong economic growth, a good investment environment, improved infrastructure, a big market and low labor cost. Tran Huu Hiep of the Southwest Steering Committee said Hau Giang does not have many advantages in the agricultural sector as other Mekong Delta provinces do. Therefore, the locality should focus on the sectors where it is strong. He said that regarding the Provincial Competitiveness Index (PCI) of Hau Giang, the province is strong in the market access criterion, so it can emphasize its dynamism and transparency as advantages. At the conference, Hau Giang granted investment certificates to four projects, namely a waste treatment plant worth VND234 billion of Greenity JSC; a food processing plant worth VND1.13 trillion of Nam Song Hau Food Import Export Service Trading Company Limited; a footwear factory worth VND2.31 trillion of Lac Ty 2 Co Ltd; and a trade-recreational complex named Nguyen Kim Hau Giang worth VND385.6 billion of Nguyen Kim Hau Giang One Member Co Ltd. HSBC projects 2017 inflation to grow 4.9% HSBC Bank has projected Vietnam’s inflation to pick up more convincingly in 2017 and headline inflation to reach 4.9% by the end of the year, limiting the window for further monetary easing by the State Bank of Vietnam. According its Asian economic report released on July 11, HSBC said Vietnam’s headline inflation averaged 0.6% in 2015, marking the lowest in recent years. However, headline consumer price index (CPI) growth jumped from 0.8% year-on-year in January to 2.4% year-on-year in June, driven by rising food inflation, a pickup in healthcare premiums and fading energy deflation. While core inflation remains under control, fluctuating between 1.6% and 2% year-on-year over the past year, solid domestic demand and robust credit growth suggest that the room for further monetary easing is limited. “We forecast headline inflation to approach the Government’s 5% target by the end of the first half of 2017. In response, the State Bank of Vietnam (SBV) will likely raise the open markets operations (OMO) rate by 50 basis points to 5.5% in the third quarter of 2017,” HSBC said. The report said the lack of progress on revenue expansion, coupled with weak oil prices, means that the budget deficit is likely to remain elevated, limiting the Government’s ability to boost capital expenditure. “In 2016, we forecast the budget deficit to widen again to 6.6% of GDP, causing the public debt-to-gross domestic product (GDP) ratio to approach the National Assembly’s limit of 65%. Regaining fiscal wiggle room requires efforts to broaden the revenue base and reduce current expenditure, but these reforms will take time,” the bank added. Besides, Vietnam’s exports continue to be buffeted by headwinds from weaker global demand but domestic demand will likely drive an acceleration of growth in the second half of 2016. Vietnam’s new leadership refrained from lowering the 6.7% 2016 GDP target in the face of the soft first-quarter GDP numbers. “The GDP numbers in the second half confirm our view that the target will be very difficult to achieve. However, authorities are likely to take steps to boost demand and spur investment, for example, by delaying the tightening of credit for real estate lending. We keep our 2016 and 2017 GDP forecasts unchanged at 6.3% and 6.6%, respectively,” the report said. Fortunately, Vietnam continues to receive robust foreign direct investment (FDI) inflows, which should help keep the overall balance of payment in surplus and facilitate a recovery in foreign exchange reserves. Disbursed FDI had hit US$7.3 billion as of June, a 15.1% year-on-year increase. With new factories commencing operations this year, HSBC expected FDI to drive further gains in Vietnam’s global export market share, allowing shipments to continue growing at a high-single digit pace even as global demand slows. Besides, the bank said foreign reserves level remains light to protect against unanticipated event risk. According to the International Monetary Fund (IMF), Vietnam’s foreign exchange reserves had fallen to US$27.9 billion, or two months of goods and services imports as of end-2015. Based on available trade and portfolio data as well as onshore media reports, HSBC predicted reserves might have recovered to around US$33.6 billion (2.5 months of imports) in the first quarter of 2016. However, these are still low levels especially in the context of Renminbi volatility risks, which could put pressure on the Vietnam dong. Export growth target seems hard to attain There is growing concern over Vietnam’s possibility of achieving this year’s export growth target as the rate in the first six months was only 5.9%. Statistics of the Ministry of Planning and Investment indicated that first-half exports totaled US$82.24 billion, up 5.9% year-on-year, well below 9.2% in the same period last year and the 10% full-year target. Minister of Planning and Investment Nguyen Chi Dung was quoted by Lao Dong newspaper as reporting to the Government earlier that the lower-than-expected export growth was attributable to shrinking outbound sales of key products. For example, shipments of industrial and processed products rose by only 8.2% year-on-year, well below 18% in the first half of 2015. Fuel oil and mineral exports plunged by 38.7% in January-June due mainly to the big drop in crude oil prices. Export turnover from agro-forestry-fishery products climbed 6% year-on-year but was not strong enough to drive up the nation’s overall export growth. Nguyen Noi, deputy director of the Foreign Investment Agency (FIA) under the ministry, said this year’s export growth could not rely only on the foreign direct investment (FDI) sector as its exports, excluding crude oil, grew only 9.1% in the first half. Noi said the FDI sector was responsible for about 70% of the country’s total export revenue but its exports depended heavily on major projects in the fields of mobile phones, electronics and parts. In previous years, the sector obtained a strong export pickup when huge projects such as the electronics complexes of Samsung were put into operation but there have been no projects of such magnitude this year. The ministry said the UK’s June 23 Brexit vote to leave the European Union (EU) and stronger devaluations of sterling and the euro against the U.S. than that of the Vietnam dong are projected to put a dampener on Vietnam’s shipments to the UK and the EU. Although Brexit may not immediately affect Vietnam’s exports in the second half, Vietnam will find it difficult to attain export growth of 10% this year and in the coming years if there are no drastic measures to expand markets. Vietnam lowers electricity imports from China Vietnam Electricity Group (EVN) plans to buy 950 million kWh of electricity from China this year, declining by 733 million kWh year-on-year, according to the group’s report on its production and business operations in the first six months. The electricity purchase cut is part of Vietnam’s plan to reduce power imports from foreign markets. Leaders of EVN said purchasing electricity from foreign countries is to ensure sufficient electricity supply for the national grid as it often takes a long time to develop a power station project. However, as more new power plants have come on stream, Vietnam will import less electricity from the northern neighbor. EVN reported that January-June electricity output inched up 12.51% to 88.51 billion kWh, including 16.13 billion kWh in June. Of the total, the group generated and purchased 84.75 billion kWh, rising by 10.75% over the same period last year. EVN reduced the volume of electricity imported from China to 1.38% of the total it generated and bought in the six-month period. It focused more on electricity from hydropower, thermal-power and oil-fueled power plants in the country. Particularly, electricity supplied by thermal-power plants accounted for nearly 40%, followed by hydropower plants with 28.3%, and oil-fueled power plants with 1.24%. Notably, the operation of Vinh Tan 2 and Duyen Hai 1 thermal-power plants helps secure stable electricity supply for the south. VIB offers express lending service for SMEs Vietnam International Bank (VIB) has launched a special program in which small and medium enterprises (SMEs) can take out loans within 48 hours. Designed to help enterprises seize business opportunities by gaining speedy access to loans, the program enables SMEs in need of short-term capital to get loans up to 80% of mortgaged assets at preferential interest rates. VIB also integrates its products and services like payment account, asset insurance, Internet banking and SMS banking into different lending packages for corporate clients. They can use such packages to benefit from preferential rates and consultations besides other promotions. According to Vuong Thi Huyen, deputy general director and head of wholesale banking at VIB, SMEs are among the bank’s key clients. Therefore, the bank expects to meet demand of SMEs by offering a swift and flexible banking product to help them develop business activities. VIB is also running another credit program for clients planning to buy autos at a rate as low as 7.15% per year in the first six months. The program lasts until the end of September. Retail giant Central promotes Vietnam goods in Thailand Thailand’s leading retailer Central Group on Sunday launched a week-long event to promote Vietnamese goods and cuisine in downtown Bangkok in association with Vietnam’s Ministry of Industry and Trade. The promotional fair, held at major shopping mall Central World, will showcase a wide range of products from top Vietnamese companies such as fine porcelain maker Minh Long, brewery Saigon Beer, Dien Quang Electrical, textile company Hoa Tho, tea company Tam Lan, Highlands Coffee, and food producers Bich Chi, Hoan Chau and Tan Hue Vien. Furniture company Binh Phu, which has recently secured a US$1.2-million deal to furnish Central Group’s forthcoming six-star hotel in Bangkok, will also participate. Around 150,000 visitors are expected a day. Deputy Minister of Industry and Trade Ho Thi Kim Thoa said the fair has been brought to many countries, but this is the first time it has been hosted by Thailand. “This is a great opportunity to promote the country’s culture and cuisine as well as the ability of businesses from Vietnam, a major exporting nation in the region,” she said at the opening ceremony. Sudhitham Chirathivat of Central Group said in a statement that the fair is a great platform to introduce Vietnamese culture and products to Thai people. It also indicates the company’s commitment to help Vietnamese producers make inroads into new markets via Central’s network of stores and companies around the world, he said. Central Group now operates the CGV Sourcing and Export Office to support and promote Vietnamese goods abroad. It represents 70 Vietnamese suppliers in agriculture, industry and consumer goods, assisting them in shipping products to over 20 countries. The group, which started doing business in Vietnam in 2011, currently employs over 15,000 Vietnamese people. Its presence spans numerous industries including electrical, sporting, fashion, department stores, hospitality, e-commerce and supermarkets. Central Group now operates the CGV Sourcing and Export Office to support and promote Vietnamese goods abroad. It represents 70 Vietnamese suppliers in agriculture, industry and consumer goods, assisting them to export to over 20 countries. Number of businesses re-operating up 75% As many as 14,902 businesses resumed operation in the first half, a year-on-year surge of 75.2%, according to the General Statistics Office. A total of 54,500 newly-established enterprises were recorded nationwide, registering a combined capital of VND427,800 billion, up 20% and up 51.5% in terms of the number and capital compared to the same period last year. Up to 16,125 enterprises increased their capital by VND774,700 billion over the recent six months, raising the total registered and additional capital to VND1.202 trillion in the first half. These achievements are thanks to active impacts of the Law on Enterprises and the Law on Investment and effective management of the Government, which have enhanced start-ups and created stronger belief for investors. According to the recent survey on business trend of the manufacturing and processing sector in the second quarter of 2016, 41.8% of the businesses evaluated positive signs in operation and 39.3% supposed that production is sustainable. Only 18.9% expressed difficulties in operation and production. Most of the enterprises forecasted that production will be positive in the second half of the year, including 55.4% expecting the increase in production, 9.3% forecasting the decrease in production and 35.3% supposing sustainable production. Trade ministry asked to achieve 10 percent export growth Prime Minister Nguyen Xuan Phuc asked the Ministry of Industry and Trade to achieve a 10 percent export growth this year, during a conference reviewing the sector’s six-month activities on July 12. He hailed the ministry for achievements in export and administrative reform, amid the global economic downturn, as well as drought and saline intrusion in the Mekong Delta. According to the PM, some of the sector’s enterprises have played vanguard roles in key areas such as energy and food. Pointing out shortcomings that need to be fixed, he admitted that the industrial production index is growing slowly, while regulations have yet to meet demand for global economic integration. The PM suggested the sector improving the performance of the National Competition Council, prevent monopoly and price dumping, fine-tuning strategies for spearhead industries, and providing all possible support for the private economy. In order to renovate State management and engage the private sector in the country’s indutrialisation and modernisation, State-owned enterprises should be made smaller while private entreprises grow continuously on the back of sound policies, he said. Mentioning lessons learn from the Formosa incident, the PM asked leaders of ministries, agencies and localities to be responsible to the Party, State, the PM and the people if a similar environmental incident occurs again, saying that development goals mustn’t be traded for people’s lives. Giving his opinions on specific measures, the leader requested focusing on industry, trade, services, and increasing oil and gas production. Manufacturing is the most important solution to boosting growth, he said, adding that each sector must increase production and improve competitiveness. In the campaign “Vietnamese prioritise Vietnamese goods”, the retail system should be expanded with counterfeits being eliminated. At the conference, he demanded the ministry restructure itself after considering that its apparatus is too cumbersome with 30 departments and department-level units, 10 universities, 22 colleges, and 11 corporations and groups. On the occasion, he reminded the ministry staff to raise their sense of responsibility to fight corruption and wastefulness, and deal with violations, toward successfully fulfilling assigned tasks. In the first six months of this year, the country’s gross domestic product grew 5.52 percent, lower than the same period last year. The index of industrial production increased by 10.1 percent while total goods and services consumption hit 9.5 percent growth. Bac Ninh: FDI hits 337 million USD in H1 The northern province of Bac Ninh has granted investment certificates to 67 new foreign direct investment (FDI) projects with a combined capital of 337 million USD since the beginning of 2016. According to figures from the province’s Department of Planning and Investment, the Republic of Korea is the top investor with 50 projects worth 246 million USD, followed by Japan with four projects worth a total of 35 million USD. The province also granted business certificates to 567 local enterprises with a total capital of 3,487 billion VND (153 million USD), bringing the total number of businesses registered under the Enterprise Law to 7,798 with a combined capital of 107,580 billion VND (4.7 billion USD). In terms of FDI enterprises, until now Bac Ninh had 864 registered projects with a combined capital of 11.9 billion USD, of which 707 projects are operational, providing jobs to more than 180,000 labourers. Bac Lieu plans to restructure fisheries sector The People’s Committee of Bac Lieu province has approved a plan to restructure the local fisheries sector, aiming to increase the average annual per capita income in the sector to 92.3 million VND (4,100 USD) by 2020, up 1.4 times against last year. Black-tiger shrimp, white-legged shrimp and sea crabs are the province’s key aquatic species. The Mekong Delta province plans to breed blue-legged spawn, dragon fish, marble goby, clams, oysters and other aquatic species. Models of farming aquatic species meeting global and Vietnamese Good Agricultural Practices (GAP) standards will be expanded. Under the plan, the Mekong Delta province will have an annual aquaculture output of 370,000 tonnes, including 147,000 tonnes of shrimp by 2020. The area devoted to breeding brackish-water shrimp will increase from 127,450 ha last year to more than 131,750 by 2020. The plan also targets an increase in the number of fishing boats from 1,264 last year to 1,450, including 650 off-shore ones, by 2020. Bac Lieu will gradually reduce catching fish near shore and develop off-shore fishing, targeting a catch of 120,000 tonnes of fish and other aquatic species by 2020. The province plans to develop fishing logistics services on sea and at fishing ports, and use advanced techniques in fishing and storage in order to reduce post-harvest losses in fishing from the current 20 per cent to 10 per cent by 2020. Storm shelters, including Cai Cung, Nha Mat and Ganh Hao, will be built for fishing boats. The plan will cost more than 6.4 trillion VND (290 million USD) from the Government budget, provincial budget and other sources. Companies resuming operations shoot up in number The number of businesses resuming operations in the first half of 2016 saw a record high in many years, as it jumped 75.2 percent from a year earlier to 14,902, according to the General Statistics Office. More than 54,500 companies were set up during the period with a combined registered capital of 427.8 trillion VND (19.2 billion USD), representing a year-on-year rise of 20 percent in the number of companies and 51.5 percent in capital. Meanwhile, over 16,120 firms increased their capital by 774.7 trillion VND (34.7 billion USD, data shows. Some officials of the Ministry of Planning and Investment (MoPI) said the surges in the business numbers and registered capital prove the effectiveness of the enterprise and investment laws and the Government’s measures, which have fostered the start-up spirit and businesses’ confidence. However, 5,507 firms shut down during the six-month period through June, up 17 percent from a year before. About 5,130 of them had registered capital of less than 10 billion VND (448,500 USD) apiece, accounting for 93.1 percent of the total closures. More than 31,100 enterprises suspended operations due to difficulties, rising by 15 percent against the same period last year, the General Statistics Office reported. The MoPI is fine-tuning the draft law on support for small- and medium-sized enterprises, which is expected to create a legal framework for supporting these companies more strongly. Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry, said the law will be a momentum for achieving the Government’s target of having at least 1 million businesses in Vietnam by 2020. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR |
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