BUSINESS IN BRIEF 22/8 C. bank drafts rule on gold custody service The central bank has announced a draft circular guiding operations of gold bar custody service of commercial banks under which banks and customers have to reach agreement on gold bar return. The draft circular regulates that banks will either return to customers gold bars they have deposited before or return them products of the same brand, quality and quantity. For the first choice, banks will have to note serial numbers of the gold bars on the transaction certificates with customers when receiving and returning gold to depositors. The draft decree also prohibits banks from paying interests for the gold custody service, and service fees must be published. Besides, lenders are not allowed to entrust other organizations and individuals to provide the service or provide the service through agents. Banks qualified to provide this service must list the business in their operation licenses and must have standard facilities for gold bar storing. They have to report on provision of this service in the previous month to the central bank before the fifth day of each month. Some 12 banks in the country have won licenses to provide gold bar custody service but just half of them have offered this service to customers. Water treatment has good chances for investors Potential in Truong Khac Hoanh, general director of Saigon Water, told the Daily on Monday that the sector of treating and distributing clean water in Saigon Water on Monday cut the deal to issue 18.37 million shares worth VND400 billion to Manila Water. The local firm expects to have stronger financial capability and more experiences in water treatment after the deal. HCMC Infrastructure Investment Joint Stock Company (CII) and Manila Water are two major shareholders of Saigon Water. In the coming time, Saigon Water will build Pleiku water plant in Gia Lai Province and Du Long plant in Ninh Thuan Province which are worth a combined VND400 billion and have respective treatment capacities of 30,000 and 15,000 cubic meters per day. Besides, Saigon Water is preparing to develop Tan Hiep 2 water plant which is expected to treat 300,000 cubic meters of water per day in HCMC’s outlying district of Hoc Mon. The firm has received approval from the city government to implement the project which will be kicked off next year. According to Gerardo C. Ablaza, CEO of Manila Water under the Ablaza said that via Saigon Water, Manila Water would continue to invest in clean water treatment projects in HCMC, and will eye wastewater treatment projects in neighboring provinces and clean water supply projects in Fernado Zobel De Ayala, chairman of Ayala Corporation, noted the wide investment chance in the clean water treatment sector in According to Saigon Water Corporation (Sawaco), water in HCMC is supplied by Thu Duc, Binh An, Tan Hiep, Trung An, Kenh Dong and Tan Phu water plants having a total treatment capacity of nearly 1.7 million cubic meters per day. Sawaco targets to increase the treatment capacity to 3.4 million cubic meters, upgrade over 1,500 kilometers of water pipelines, build a water supply management system and reduce the water loss to 25% in 2025. However, such projects will need up to US$2.5 billion, to be mainly sourced from official development assistance (ODA) loans. Price rise agreement propels wind power growth The domestically-owned Cong Ly Company has received support from the Ministry of Industry and Trade to sell electricity from its Bac Lieu wind power project at a price higher than regulated by the government. The Ministry of Industry and Trade (MoIT), in a document sent to the prime minister late July which has been seen by VIR, proposed that the power tariff at the Bac Lieu project should be set at 11.5 US cents for 1 kilowatt per hour during the first ten years and 9.8 US cents during the four following years. From the fifteenth year of the project, the power tariff should be at 6.8 US cents. The proposed tariff is much higher than the 7.8 US cents fixed by the government under Decision 37/2011/QD-TTg. According the MoIT, the higher tariff would make the Bac Lieu project effective given its expensive initial investment costs. However, the tariff that the MoIT proposed is still lower than Cong Ly’s original demand. The power investor previously proposed a tariff of 12 US cents for the first ten years and 10 US cent for four following years. Cong Ly’s general director To Hoai Dan told VIR that although the MoIT’s proposed tariff was lower than he had hoped he thought it was an “acceptable” level. “We understand that we also have to share the burden with the government,” he said. The wind power project, situated in southern The Bac Lieu project has total investment capital of around $45.8 million and a design capacity of 99.2 megawatts. Cong Ly has installed 10 turbines in the first phase and is planning to install an additional 52 turbines during the second phase. “As this project is located on the coastline we had to spend lots of money on constructing the foundations for the turbines. We also used the most advanced turbines, which pushed up our investment costs,” said Dan. He revealed the second phase of the project would start in May, 2014 and be completed in April, 2015. “This is the first wind power project to be implemented on the coastline and is the first project of its kind in the Mekong Delta. Its success will pave the way for the development of more wind-power projects in the region,” Dan said. According to the municipal Statistics Office, transport services saw the highest price rises of 1.24%. Slight price increases were seen in housing, electricity, and fuel (up 0.58%), beverages and cigarettes (up 0.28%), culture, entertainment, and tourism (up 0.28%), garments, textiles, headwear, and footwear (up 0.19%), food and restaurants (up 0.19%), household appliances (up 0.03%), and medicine and healthcare (up 0.02%). Postage and telecommunications saw no price rises while the price of education edged back 0.01%. The gold price dropped 0.48% during the month while the US dollar fell 0.41% from July. Seminar promotes inter-locality ICT links The central city of Themed “Promoting IT Infrastructure for Socio-economic Development”, the event is intended to encourage linking cities, provinces, and economic zones, boosting ICT application and development. Delegates can present their ideas and share their experiences of using ICT in administrative reforms responding to the demands of the nation’s businesses and citizens. Le Sy Minh, Director of Thua Thien-Hue province’s Department of Information and Communications, said the seminar will focus on familiar topics like future directions for ICT infrastructure, applying IT advances at a national level, establishing e-government services, and using ICT in education, healthcare, and banking. The seminar also encompasses a science and technology product exhibition, an equipment presentation to disadvantaged Thua Thien-Hue tertiary students, and tours of model provincial management and production agencies capitalising on IT’s potential. Samsung factory to take shape in Thai Nguyen Samsung Electro-Mechanics is expected to build a factory to produce intergrated circuits and electronic components in the The US$1.2 billion project is scheduled to start this October and enter operations in August 2014, by that time the total investment of the Samsung Group in Phan Manh Cuong, Deputy Head of the provincial Industrial Zones Management Board, said that Samsung submitted the documents requesting an investment recognition certificate for the Samsung Hi-tech Complex in the Yen Binh Industrial Zone and the group expects to receive the certificate in September. The new factory is Samsung Group’s third investment project in The finding was part of new survey results released on August 20 by the American Chamber of Commerce in In a poll of 475 senior executives from US companies operating in the 10 ASEAN countries, 43 percent of all respondents said they have plans for business expansion in Of the 69 respondents in Vietnam, 61 percent expect their workforce to increase in the country in the remaining months of 2013 and in 2014 as 62 percent expect profits to increase in 2013 and 85 percent, in 2014, 59 percent speak highly of availability of low cost labour, 55 percent of personal security and 55 percent of sentiments towards the US. They indicate dissatisfaction in As many as 42 percent of respondents in Vietnamese goods week to be launched in Dong Nai A Vietnamese goods week is set to take place in the southern According to Director of the provincial Department of Industry and Trade Le Van Danh, the week aims to promote Vietnamese goods and provide local high-quality products to consumers with reasonable prices. More than 300 supermarkets, shops, trade centres and manufacturers will showcase their products during the week, which will also feature a 350-stall high-quality Vietnamese goods fair. In response to the programme to bring Vietnamese goods to rural areas, Dong Nai province has organised a wide range of activities, including market days for farmers and workers. Between now and the year-end, the province plans 27 shipments of Vietnamese goods to rural areas and factories. Foreign gaming company seeks investment chance Austria-based gaming company Casinos Austria AG on Monday had a meeting with HCMC Vice Chairwoman Nguyen Thi Hong to discuss its casino and computerized lottery plan in HCMC. According to Karl Stoss, CEO of Casinos Austria, the company has worked with HCMC Lottery Company on supporting technology and developing new products such as bingo and scratch card. In addition, Casinos Austria has signed a cooperation agreement with HD Bank and a memorandum of understanding with Savico. Casinos In response to Stoss, Hong said that the city did not have authority over such projects and lottery was managed by the Ministry of Finance. Casinos Austria AG established in 1967 is one of the leading international gaming companies. Together with some partners, Casinos Austria AG is operating 40 land-based casinos in 16 countries, eight shipboard casinos, 750 gaming tables and over 7,600 slot machines. Many Many projects invested by Singaporean enterprises will be implemented and put into operation this year, according to the Ministry of Planning and Investment’s Foreign Investment Agency (FIA). Sembcorp will start work on the urban-industrial-service complex in The complex consists of 600 hectares of industrial land in Dung Quat Economic Zone and 520 hectares of urban-service land near Besides, Sembcorp has received approval from the Government to study a thermal power plan worth around US$2 billion and having a capacity of 1,200 MW in Meanwhile, Hoa Lam-Shangri-La Healthcare, a joint venture between In the education sector, KinderWorld Education Group will build Pegasus International UniCollege in Danang and other schools of the kind will be then built in Vung Tau, Nha Trang and HCMC. Such moves are positive signals showing that According to FIA, Regarding freshly licensed projects in the seven-month period, The sectors In the healthcare sector, Chandler Corporation has officially entered Meanwhile, Bien Hoa bypass expanded right in first phase The section of The Ministry of Transport has approved the project’s investor Dong Thuan Investment Joint Stock Company to expand this road section to six lanes to ease the traffic load on the backbone highway. Nguyen Van Khang, director of the firm, said the expansion will cost an additional VND75 billion and one more month of construction compared to the previous design. However, in return the capacity of the bypass will increase dramatically. The bypass’ foundation and drain system have been completed, but around 200 households living near two ends of the road have not yet been relocated. Khang said that if site clearance was finished in October, the bypass could be put into use in next year’s first quarter. After completion, the bypass will help reduce traffic congestion in The project invested under the build-operate-transfer (BOT) model has a length of 12.2 kilometers, starting from Tra Co Church in Trang Bom District and connected to National Highway 51 in The project will need VND751 billion for construction costs and two resettlement areas, not to mention a supplementary VND75 billion when it is expanded to six lanes. Kicked off in July, 2010, the project scheduled for completion at the end of last year has fallen behind schedule due to slow site clearance. According to the investor, the project’s payback period via toll collection will be 23 years and 11 months. Old projects introduced at Vietbuild 2013 Just a few real estate enterprises joined Vietbuild 2013, the international exhibition on real estate, interior and exterior design, and construction materials, while most projects introduced at the fair were those already launched earlier. In previous years, there were quite many enterprises joining the annual exhibition. But this year, due to scant participation, exhibitors had chances to lure visitors to their booths at the fair, which took place in HCMC from August 14 to 18. Hung Thinh Land Company introduced three condo projects, including a project on Pham Van Hai Street with apartments priced from VND1.7 billion each, Phuc Yen 2 project in Tan Binh District at VND1.2 billion each and Chuong Duong Garden in Tan Phu District at VND13.5 million per square meter. Meanwhile, Phuc Khang Construction & Investment Joint Stock Company continued to introduce to investors the The enterprise also offered Minh Vinh Khang Trade Joint Stock Company offered special sale for Bao Loc residential area in A staff of the enterprise said the houses previously were offered at VND1.6-1.7 billion each. So, the enterprise expected to speed up sales with the special discount. Vietbuild 2013 took place at the Saigon Exhibition and Convention Center in HCMC’s District 7. Around 800 local and international enterprises featured 2,200 booths at the fair. HAGL restructures portfolios to cut debts Hoang Anh Gia Lai Group (HAGL) is refraining from hydropower projects to focus resources on farming and real estate in a move to cut debts that have exceeded its charter capital, said the group’s chairman Doan Nguyen Duc. Duc told the company’s investors meeting here on Monday that the restructuring plan would also include the establishment of one more enterprise to solve the bad debts, which hit VND16 trillion as of December 31, 2012 compared to its equities of VND10 trillion. “The goal is to reduce debts to less than VND10 trillion while spurring the group’s equities to VND13 trillion later this year,” he said. The restructuring plan focuses on agriculture and real estate sectors as the group’s two core business activities. The target agricultural area of HGAL comprises of sugarcane-sugar and rubber-palm oil while the group considers investments in Meanwhile, the hydropower industry, which used to be HAGL’s strategic business in the past due to its high investment efficiency, will now be forsaken. Duc said that after four years of operation, four hydropower projects of HAGL have posted low profits while the firm now sees many better choices. It therefore decides to transfer hydropower schemes in HAGL has almost completed necessary procedures to transfer its hydropower projects in Vietnam, Duc said, adding the transfer value plus the reduced bank loans of his firm totaled nearly VND4 trillion. At the same time, HAGL will separate subsidiaries owning apartment projects from the parent company, especially those with housing schemes with low economic efficiency. Similarly, the mining projects will also be downscaled and then be transferred by HAGL. As the current three iron mines in operation in Regarding the woodworking and stone industries, Duc said his company would transfer stakes of its enterprises in the sectors to employees who have been working for the group from the very beginning. The group will retain a 20% stake only. Specially, HAGL will formally establish An Phu Company to tackle the present bad debts as a way to clean up the parent company’s financial sheet. In fact, An Phu was established some two years ago but has not been formally inaugurated, said Vo Truong Son, deputy general director of HAGL. An Phu would have a charter capital of VND360 billion. Under the scheme, Hoang Anh Housing Development Company as an offshoot of the group will sell stakes in An Phu to the parent firm HAGL, which will hold a stake of up to over 99% in the new firm. Hoang Anh Housing Development Company will transfer its stakes in other subsidiaries to An Phu such as Dong An Phu will borrow funds from the parent firms to acquire stakes mentioned above, and will also issue shares to investors. Hoang Anh Housing Development Company will use sums from the stake transfer to refund loans of over VND3 trillion for the parent firm. With all the restructuring and stake transfer, it is expected that the parent firm by the end of the year will have a clean balance sheet, said Vo Truong Son. Incentives for supplementary pension insurance The Department of Social Insurance on Monday suggested the State to provide tax incentives for supplementary pension insurance to encourage local enterprises and laborers to join the program. Specifically, supplementary pension insurance premiums paid by employees will be exempted from personal income tax while those paid by employers will be considered as reasonable expenses for corporate income tax deduction. Besides, retired employees will not pay taxes for retirement pension they receive each month. They will only pay taxes if they take their entire pension as a lump sum. Speaking at a meeting fielding suggestions for the Government’s draft decision on piloting the pension policy in HCMC on Monday, Pham Truong Giang, deputy head of the department, said that enterprises will join the insurance program on a voluntary basis and will negotiate with employees on payment ratios. The program aims to help employees receive higher retirement pensions and reduce pressure on the State budget and social insurance fund. At present, whenever the State revises up minimum wages for civil servants, basic retirement pension must follow suit. When employees have received supplementary pensions, it will enable the State to separate minimum wage increase from pension increase, reducing State budget spending on pension increase, which is standing at around VND3 trillion each year. The department expects to field suggestions for the draft decision from now to the end of this month and submit it to the Government in November. The program will be piloted early 2014, beginning with State-owned groups and corporations and other enterprises with demands. The pilot program is expected to last three years to help managing agencies complete legal framework for the insurance policy. Employees are estimated to contribute 5-22% of monthly wages to the supplementary pension fund. Enterprises and employees will negotiate on payment ratios but the premium will be no higher than VND5.06 million a person each month and VND60.7 million a year. SSC supports issuing shares under par value The State Securities Commission (SSC) from now until the end of the year will continue to help listed firms in issuance of shares under the par value based on the decisions of such firms’ annual general meetings. Initially, listed enterprises that do not belong to conditional business sectors are allowed to issue shares under the par value if they have sufficient capital surplus to offset the shortfall, said sources from SSC. According to a draft circular guiding issuing shares under par value, one of the conditions is that companies must have enough capital surplus or retained profit to make up for charter capital losses due to the issuance. However, the circular has not been released as it is not aligned with current laws. Therefore, SSC has sought to delay issuance of the circular and will study to supplement the conditions to other legal documents, said SSC chairman Vu Bang. “We are in a tough position. As SSC just implements regulations and doesn’t release legal documents, the capability of solving legal problems is limited,” Bang said. However, SSC has granted approval for several enterprises to issue shares under the par value in recent times. At present, over half of total stocks listed on the two local exchanges have their market prices under the par value of VND10,000 each. Truong Thanh Furniture Corporation (TTF) has recently obtained approval to issue shares under the par value, opening the door for enterprises thirsty for capital or mired in financial difficulties. According to SSC, the number of newly-listed firms has declined sharply given economic difficulties and stricter listing rules, especially in information proclamation. Meanwhile, the number of delisted enterprises has also reached a record high. Seven new enterprises debuted on both markets in the first six months of this year while 21 firms and one investment fund were delisted. There are around 737 enterprises trading shares on both exchanges, excluding 135 firms on the UPCoM, the market for unlisted public companies. The total mobilization via share issues, share and government bond auctions in the year’s first half reached nearly VND115 trillion, up 37% against the same period of 2012. However, mobilization via share issues plunged 58% year-on-year to over VND2.3 trillion. Zalo attracts four million users VNG Joint Stock Company says the number of users of Zalo social media website has reached four million after just one year of deployment. With the four million users, Zalo has become the second most popular free calling and messaging service or over-the-top content (OTT) after the U.S.-based Viber which has more than five million users in Some 40 million text messages are sent via Zalo daily, VNG said, adding that a version of the service for mobile application running on Windows Phone has now been available while the other for Android and iOS operation systems has been updated. Equipped with the locking application feature to protect users’ privacy, the new version allows users to set up a four-character password to access Zalo. Besides, with the version, all incoming and outgoing messages are encrypted in line with the Advanced Encryption Standard (AES), a security method recommended by the U.S. National Institute of Standards and Technology. Commenting on the local OTT market, Vuong Quang Khai, deputy general director of VNG, remarked that this was a highly potential market with tough competition between local and foreign technology firms. The Vietnamese market so far has welcomed foreign-invested companies like OTT players now are directly competing with telecom service providers such as Viettel, MobiFone and VinaPhone who have seen their revenues falling as a result. A number of OTT application providers like Zalo, Viber, Line or Kakao Talk have also expressed a desire to cooperate with the telecom companies. Regarding this issue, Bui Quoc Viet, spokesman of VNPT Group, said OTT applications like Viber, Zalo or Line have cut into the revenues of MobiFone and VinaPhone by up to 30% at certain times. Similarly, Tong Viet Trung, deputy general director of Viettel, affirmed OTT had resulted in a serious revenue decline for his firm. Telecom experts believe that with the current strong growth of OTT applications, telecom companies will have to join hands with OTT service providers to offer new service packages. They expect telecom firms to soon launch new 3G service packages with OTT services. The HCMC government will exclude from planning or change the functions of some industrial clusters in residential areas that have no infrastructure developers and lack facilities such as roads and power supply. In the industrial cluster development plan until 2020 with the vision till 2030 sent to the Ministry of Planning and Investment last week, local authorities suggested eliminating nine industrial clusters out of planning. These are Binh Dang, Hiep Binh Phuoc, East of National Highway 1A, Hiep Thanh, Tan Thoi Nhat, Tan Hiep A, Tan Hiep B , Dong Thanh and Phu My with a total area of 342 hectares. The city also suggested eliminating Long Son, Tan Thoi Nhi and Binh Khanh clusters, with the total area of 209 hectares. The city will also revise down areas of some industrial clusters, of which Tan Tuc will have its area shrink from 40 hectares to 29.8 hectares, Xuan Thoi Son A from 38 hectares to 21 hectares, and Nhi Xuan from 230 hectares to 54 hectares. Besides, certain industrial clusters like that of Saigon Agriculture Corporation, Da Phuoc, Pham Van Coi and Bau Tran have been suggested to be upgraded to industrial zones. Meanwhile, local authorities also suggested adding some industrial cluster projects into the planning. The projects are expected to cover a total area of 450 to 500 hectares to facilitate industrial development in the 2025-2030 period. According to the plan approved by the Government in 2004, HCMC would develop 30 industrial clusters on the total area of 1,900 hectares. The city up to now has set up planning for 27 industrial clusters on over 1,600 hectares. Of which, there are 16 active industrial clusters that have attracted around 600 projects and created 32,000 jobs. According to local authorities, some 13 out of the 16 industrial clusters have no infrastructure developers. Most industrial clusters have yet to finish infrastructures and just a few enterprises have invested in private wastewater treatment systems. Fertilizer maker helps farmers’ children continue schooling PetroVietnam Fertilizer and Chemicals Corporation specializing in urea fertilizer production has donated more than 17,500 presents to students who are children of needy farmers in 19 provinces with a total value of up to VND5.5 billion. With the program “Supporting farmers’ children in schooling,” the company wants to assist farming households facing financial troubles by creating favorable conditions for their children to continue schooling. The firm cooperates with its subsidiaries, local study promotion associations and schools to hand over gifts including notebooks and cash to the target students. Presents for primary students include notebooks worth VND100,000 and VND200,000 in cash, while high school students receive notebooks valued at VND200,000 and a cash sum of VND300,000 each. Besides the presents, the fertilizer maker also supplies teaching equipment for 44 schools, with each school given VND10-20 million. The donations to needy students are aimed to help farmers who have suffered from falling prices of farm produce this year. The company has actively carried out many direct supporting programs targeting troubled farmers, including the donation of fertilizer to farmers in eight provinces in the Mekong Delta in July. It is looking to finance a total of around VND100 billion for social welfare programs this year, with some VND60 billion set aside for the education sector. Opportunities and challenges created by TPP Since November 2010, Vietnam has been involved in official TPP negotiations together with New Zealand, Brunei, Chile, Singapore, Australia, Peru, the US, Malaysia, Canada, and Mexico. The 18th round of negotiation in Once reaching consensus in November and signing an agreement by the end of 2013, TPP will be established, becoming one of the world’s largest trade regions with a total population of 792 million that contribute nearly 40% to GDP and account for one third of the global trade value. The garment and footwear sector is expected to receive a boost in export growth from US$133 billion at present to US$165 by 2025, up 45.9% year on year. Tran Viet, head of the External Relations Department of the Vietnam Textile and Garment Association (Vinatas), said Previously, experts had predicted that Vietnamese State President Truong Tan Sang paid a visit to the President Obama said: “We are making efforts to complete the TPP agreement in 2013 as it can generate jobs and increase investment in the region, as well as in both countries.” The two leaders then released a joint statement affirming their strong determination to complete negotiations on the TPP agreement in a comprehensive and efficient manner in the earliest time this year. TPP is not an absolutely open market as it provides a common list for the opening of the service sector that Dr. Le Doang Doanh, former Head of the Central Institute for Economic Management (CIEM), said However, Professor Nguyen Mai, former Deputy Chairman of the State Committee for Cooperation and Investment (SCCI) (now the Ministry of Planning and Investment), voiced his concern over Vietnam’s more open market and its ability to balance export revenue, which was currently higher than GDP. Moreover, he said, Specialists worried about technical problems, the role of State-owned businesses, and organizations of workers. The TPP agreement requires the independent organization of workers which connects to other relevant agencies across the country to protect legitimate rights of employers. At present, Above all challenges, the TPP agreement is considered a good playground for potential economies like Making Chu Lai Open Economic Zone a preeminent economic hub Deputy Prime Minister Nguyen Xuan Phuc has asked Quang Phuc issued his urging during an August 17 ceremony commemorating the 10th anniversary of the zone’s establishment and awarding it the Labour Order, Third Class. Chu Lai has thus far granted investment licenses to 89 projects capitalised at US$1.514 billion, a tally including 21 foreign-invested projects. Sixty-two out of 82 planned projects have already been implemented with total investment capital of US$783 million. Some of the zone’s most notable successes are the Chu Lai Truong Hai automobile mechanical industrial park, the Chu Lai Float Glass Plant, and the Chu Lai Soda Production Factory. Its 2013 projects range from a US$25 million German-funded Chu Lai Nui Thanh urban area waste water treatment project to developing The Prime Minister has selected Chu Lai Open Economic Zone as one of five leading national economic zones deserving preferential attention over the 2013–2015 period. The zone generates nearly 50,000 jobs in the province. In addition to the zone’s Labour Order, its management board was also licensed to invest US$1.6 billion in an international port and Doctor Thanh industrial park. Vietnam and Laos have signed an August 16 Memorandum of Understanding (MoU) in Vientiane confirming plans to work together on a Tuan Chau island luxury resort in Quang Ninh province’s Ha Long City. The MoU’s signatories were The MoU specifies the resort will be constructed on four hectares of land following a collaborative design and architectural process and legal and contract formalities. The project is scheduled for investment licensing in September and construction to begin in October. At a reception held earlier for Tuyen, The Deputy PM expressed confidence in Tuan Chau Group’s expertise and declared the project will only consolidate the special relationship between the two countries. Mr Tuyen pledged to spare no effort in ensuring the project is effectively realised and honours the venerable history of Vietnam-Laos solidarity and cooperation. Garments, textiles maintain stable growth During the reviewed period, with a contribution of 13.2 percent to the country’s total export revenue, the sector maintained its high position in the US$1 billion club, only mobile phones and spare parts stand before it. The industry is expected to rake in over US$8 billion in the remaining months of the years, fulfilling the target set by the Government. Despite its stable growth, the sector is facing a range of difficulties in material production, according to the Ministry of Planning and Investment. Statistics show that the garment and textile sector spent more than US$7.6 billion purchasing materials from foreign countries in the past seven months, up 18.2 percent year-on-year. Given this situation, domestic and foreign businesses are pouring huge sum into the fibre supply chain, weaving and dyeing in order to raise the sector’s competitive edge while minimising its dependence on imports. Joining the move, the Vietnam National Textile and Garment Group kicked off the construction of Phu Hung fibre plant at the Hong Kong-based Texhong Group recently put into operation the first phase of its fibre plant in the northern province of Quang Ninh. Le Tien Truong, Vice Chairman of the Vietnam Textile and Apparel Association, said the sector is now confident it can compete in overseas markets. The Trans-Pacific Partnership (TPP) agreement, once signed, together with other bilateral and multilateral free trade agreements, is expected to stimulate the sector, he said. Vinacomin targets sustainable coal and mineral industry The Vietnam National Coal and Mineral Industries Group (Vinacomin)’s visions of sustainable development for the nation’s coal and mineral industries will require mechanizing production as much as possible and focusing on mine exploitation. Delegates reached this general consensus at an August 16 seminar in Quang Ninh province’s Ha Long City. Discussions emphasised Quang Ninh province’s important contributions to developing Vietnam’s coal and mineral industries. Swedish Ambassador to Vietnam Camilla Mellander said the coal and mineral sector presents excellent opportunities for Vietnamese and Swedish cooperation. As a leading European mining nation, Swedish can help Vietnamese businesses negotiate the partnerships that can fuel the industry’s technological innovations. Major Swedish companies such as ABB, Scania, and SEK are willing to commit to long-term partnerships with Vietnamese colleagues working towards building an advanced mining industry. Both sides used the seminar to strategise cooperation capable of assisting Vietnamese mining’s development. Exports to France surpasses US$1 billion Vietnam’s exports to France hit more than US$1 billion in the first half of this year, up 6.3% on the same period last year. According to the Trade and Industry Information Centre (TIIC) under the Ministry of Industry and Trade (MoIT), products exported to France are diverse, such as footwear, garment, utensils, agriculture, forestry and seafood products, electrical equipment, electronics and rubber. Telephones and its components topped the list of export commodities with more than US$383 million in revenue (up 25.1%), followed by computers, electrical products and components with US$112.7 million (up 156.9%) and footwear with US$109.8 million (down 15.3%). Some other items also achieved high export growth, such as garment, pepper, confectionary and cereals. Vietnam is currently negotiating Free Trade Agreement with the EU in an effort to reduce import taxes for some of its products. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR |
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