BUSINESS IN BRIEF 3/12

Banking sector tops list of 1000 biggest tax payers

Vietnam report 2013 reveals the banking and telecoms sectors remain the greatest tax contributors in this year’s list of 1,000 largest corporate income tax payers in Vietnam (V1000), making up 23.4% and 16.7% respectively of all tax.

Total taxes contributed by V1000 reached VND77,000 billion this year, 42% higher than last year’s level.

The PetroVietnam Exploration Production Company (PVEP) takes the lead among the highest tax payers, closely followed by Viettel, Mobifone, PetroVietnam Gas Joint Stock Corporation (PV Gas) and the Vietnam National Oil and Gas Group (PetroVietnam).

The Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank)  is ranked sixth, followed by commercial banks such as Vietnam Bank for Agriculture and Rural Development (Agribank), JSC Bank for Foreign Trade of VIetna (Vietcombank), and the Bank for Investment and Development of Vietnam (BIDV).

The findings illustrate substantial differences in the amount of tax paid by leading companies. In addition, government revenue still remains largely dependent on the top ten tax payers, one third of the entire state budget comes from 1,000 enterprises.

Top ten tax paying enterprises in 2013:

1.     The PetroVietnam Exploration Production Company (PVEP)

2.     Military Telcommunications Group

3.     Vietnam Mobile Telecom Services Company (VMS)

4.     PetroVietnam Gas Joint Stock Corporation (PV Gas)

5.     Vietnam National Oil and Gas Group

6.      Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank)

7.     Vietnam Bank for Agriculture and Rural Development (Agribank)

8.     Vietnam Dairy Company

9.     JSC Bank for Foreign Trade of VIetna (Vietcombank)

10.   Bank for Investment and Development of Vietnam (BIDV).

Master plan plots course of ship industry

The large-scale maintenance and expansion of existing shipyards is the bedrock of a master plan on the development of the ship industry to 2020 recently approved by the prime minister.

The industry also aims to create ship repair hubs which are well connected with seaport system and vital international marine routes.

The plan states that new shipyards should be placed in the northern port cities of Hai Phong and Quang Ninh. Bach Dang shipyard in the former builds liquefied petroleum gas carriers and 30,000-tonne ship containers, while Ha Long ship building factory in the latter specialises in producing sophisticated and high-tech ships or containers with capacity of up to 70,000 tonnes.

For facilities in the central region, with the focus on Quang Ngai and Khanh Hoa provinces, the development strategy will likely be applied to some major ones including Dung Quat ship building factory.

Ship repair workshops are planned to develop in line with new shipyards and seaports, according to the plan, and supporting industry for ship building will be built within the domestic supporting industry zones.-

Southeastern region fair links farmers, scientists

An agriculture and trade fair underway in southern Dong Nai province is providing a venue for farmers to seek fresh know-how from scientists to improve their production.

The week-long fair features a wide range of signature farm produce and aquatic products of the southeastern region on nearly 400 pavilions, looking to encourage local consumers consume more locally-made items.

A “Farmers’ bridge” programme was held on November 29 for farmers and representatives from agricultural co-operatives in the region and localities nearby to get their questions on modern farming techniques answered by agriculture officials and scientists.

The fair will close on December 3.

US$400 mil tyre factory inaugurated in Tay Ninh

November 30 saw the opening of Chinese company, Sailun Tires Co, Ltd,  in Phuoc Dong-Boi Loi Industrial Park in the southern province of Tay Ninh.

The US$400 million factory to produce steel radial and semi-steel radial tyres  in the province was licensed in 2011, on an area of 60 hectares, in the Phuoc Dong-Boi Loi IP and is the largest foreign-invested company in Tay Ninh to date.

The production plant has a design capacity of 150,000 tyres per year and is expected to generate some 1,000 jobs.

The executive director highlighted  the factory’s application of modern and advanced production procedures to ensure its products meet the export requirements of Asian and other global markets.

In an opening speech Deputy Chairman of the provincial People’s Committee Huynh Van Quang said that the factory operation has contributed extensively to the province’s socio-economic development, living conditions and quality of life

After two years of development and building of infrastructure, the Phuoc Dong-Boi Loi IP has managed to attracted 11 investment projects including eight foreign-invested projects and three domestic projects capitalized at US$922 million and VND616 billion respectively. At present, three foreign-invested projects worth US$500 million have been put into operation

Binh Duong’s focus of investment in 6 major areas

The southern province of Binh Duong needs investment in the fields of electricity-electronics, support industry, precise engineering, industrial pharmacy, pharmaceutical equipment, and food and high-quality food processing.

Le Thanh Cung, Chairman of the Provincial People’s Committee, said the scale of investment depends on specific needs, technological skills and business plans.

The province always encourages businesses to rise more local raw materials, improve the quality and competitiveness of products, and promote industrial development in line with urbanization and environment protection policies.

Binh Duong is expected to attract more than US$1 billion foreign direct investment (FDI) in 2014. This year’s FDI inflows have already reached US$1,2 billion or more, bringing the total figure to nearly US$19 billion so far.

Products of potential strength include garments annually earning more than US$1.5 billion in export revenue, timber products (more than US$1.2 billion) and others in the footwear, electricity-electronics and food processing sectors.

Vietnam’s exports up 13 notches in WTO ranking

After seven years of joining the World Trade Organization (WTO), Vietnam’s exports have moved 13 notches, up to 37th position among countries and territories across the world.

The country’s imports have also jumped by 18 notches to 34th place.

The information was released at a recent review of WTO members in Geneva.

Vietnam’s trade turnover in 2012 rose two fold to US$ 228.31 billion, compared to the first year of its WTO accession.

SOE reform tops 2013 business forum’s agenda

The 2013 Vietnam Business Forum, to be held in Hanoi on December 3, will focus on the restructuring of State-owned enterprises (SOEs), commercial banks, and the capital market, as well as corporate governance and transparency.

Vietnam Business Forum board member Alain Cany announced the working agenda of the forum at a press briefing in Hanoi on December 1.

He said the year-end meeting, themed ‘New Phase of Economic Reform: From Agenda to Action’, is expected to create a forum for government officials and the domestic and foreign business communities to discuss and seek workable solutions for further improving Vietnam’s business environment.

Businesses expect a stronger legal reform to attract investment

VBF 2013 will also examine the impact of the Trans-Pacific Partnership (TPP) agreement on Vietnam’s short-term growth.

Vietnam is joining TPP negotiations with 11 other countries, namely Brunei, Canada, Chile, the United States, Malaysia, Mexico, Japan, New Zealand, Australia, Peru, and Singapore. Parties expect to conclude negotiations and sign the trade pact in 2014.

Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry, said there are two long-term positive signs for the economy: the enforcement of the government’s economic restructuring plan, and Vietnam’s increased negotiations of bilateral and multilateral trade agreements.

Adhering to these agreements will pressure Vietnam to accelerate institutional reform and improve the competitive capacity of its economy, bolstering medium- and long-term business confidence, said Loc.

Businesses have high hopes for the government’s measures to stabilise the macroeconomy, rein in inflation, lower bank interest rates, and keep the foreign currency market under control, helping to ease business difficulties.

However, businesses still face policy and law barriers, affecting their production. A Ministry of Planning and Investment report shows nearly 55,000 businesses have gone bankrupt or suspended operations over the past 11 months, a year-on-year rise of 8.4%.

These disadvantages affect businesses’ investment plans in 2014 and the restoration of their trust in Vietnam – one of the attractive investment destinations in the region.

The Vietnam Business Forum is a regular and close dialogue mechanism between the government of Vietnam and domestic and foreign business communities, aiming to improve necessary business conditions to develop the private sector and facilitate the investment environment.

Vietnam attends int’l fair in Italy

More than 50 Vietnamese businesses have attended the 18th international fine arts and handicraft fair in Milan to mark the Vietnam Year in Italy and the 40th anniversary of diplomatic ties.

The fair marks the closing of “Vietnam Days in Milan” which have lasted nearly 3 months with 16 cultural and economic events in Milan.

At the opening ceremony on November 30, Ambassador Nguyen Hoang Long said participating businesses present the image of Vietnam as a country that is friendly, open and famous for handicraft products it has exported to 163 countries in the world.

Displayed on 50 Vietnamese stands covering more than 1,000 sq.m are different kinds of traditional fine arts and handicraft products.

This is the biggest international fair which has been ever held since 1996.

Last year’s fair drew more than 3 million visitors to 2,900 stands of 110 countries.

90% of Vietnamese tea exported in raw form

Ministry of Industry and Trade’s Market Department Deputy Head Le Viet Nga has revealed Vietnam’s export tea price is significantly lower than the average global price, attributing it to more than 90% of tea volumes being exported in the form of raw materials.

Nga says despite Vietnam’s position among the top five tea producers and ranking fifth among worldwide tea exporters, the value of Vietnamese tea exports remains comparatively lower than other nations, at US$1,200 per hectare.

Few businesses have invested in developing trademarks and packaging technologies to increase the value of products. In addition, the number of tea factories has trippled or even increased  seven or eight fold compared to capacities of supply materials, leading to a lack of investment in material zones and low quality products.

Thai Nguyen Tea Association President Nguyen Thi Nga reports that there is limited co-ordination between tea growers and businesses and the sector still faces difficulties in ensuring quality management  and food safety and hygiene.

She warned that the tea sector should update processing technologies and production lines to produce competitive tea products while proposing tax exemption for tea cultivation in hilly regions for five years,  and setting up a price stabilization fund as well as introducing modern mechanisms to develop sustainable tea production.

Seeking ways to alleviate difficulties for FDI enterprises

HCM city’s customs has taken drastic measures to remove investment barriers and improve conditions for foreign direct investment (FDI) businesses to create a healthy and competitive business environment.

The intiative comes after Intel Products Vietnam, a FDI enterprise earning around US$1.5 billion in revenue after 11 months of this year encountered difficulties in purchasing import materials from local companies.

Following complaints about the amount of time and unecessary costs incurred during import procedures, Vietnam Customs revised their import strategy and came up with a satisfactory solution for all parties..

One of the most challenging issues faced by FDI enterprises in HCM City is important documents going missing, making it extremely difficult to make liquidation with the customs sector.

HCM City Department of Customs Deputy Head Nguyen Huu Nghiep  that the situation was largely attributed to  FDI businesses using broker servies to complete formalities and documentation rather than dealing with the customs department direct.

He pledged to examine and solve similar problems for FDI enterprises. Stating that in the future, the customs sector will implement policies to develop effective working partnerships between the customs sector and businesses nationwide, especially when Vietnam joins the Trans-Pacific Partnership (TPP) Agreement.

Central provinces call for Thai investments

Thai and overseas Vietnamese businesses in Thailand were encouraged to invest in the central provinces of Vietnam during a recent forum in Bangkok.

The event, the first of its kind to involve Vietnam’s central provinces, was co-organised by the Vietnam Trade Office in Thailand and the Thai Board of Investment.

During the forum, the central region of Quang Tri, Quang Ngai and Quang Nam introduced their strengths and areas of potential.

Ambassador Ngo Duc Thang said bilateral ties between Vietnam and Thailand have developed strongly in economics, trade and investment, especially after the two sides established their strategic partnership during the official visit by Party General Secretary Nguyen Phu Trong.

Last year, two-way trade surged more than 20 percent to hit US$10 billion, he noted, adding that in the first 10 months of this year, the figure already reached US$7.8 billion, up 15 percent year on year.

Investment is also a bright spot in bilateral cooperation, he said. Thailand has been one of the ten leading investors in Vietnam with 324 projects totalling nearly US$6.5 billion.

According to Chokdee Kaewsang, Deputy Secretary-General of the Thai Board of Investment, Thailand now ranks third in list of ASEAN investors abroad. The number of Thai businesses wishing to expand investment in another countries, especially ASEAN members, is increasing, Chokdee said.

Vietnam is now a particularly attractive investment destination with socio-political stability and an abundant labour force. The country has also integrated more deeply into the regional and global economy as the 150 th member of the World Trade Organisation, the official noted.

Chokdee also pointed out that enterprises from both countries are enjoying a favourable business and investment environment. Many bilateral agreements have been signed, while both countries are participating in many multilateral cooperation frameworks.

Vietnam and Thailand are striving to achieve two-way trade of US$15 billion in 2020, he noted.

The conference is an opportunity for businesses from Thailand and central region of Vietnam to get closer and seek partnership to match their cooperation potential.

Gas prices to rise by VND80,000 from December

Retail gas prices will increase VND80,000 to VND475,000-485,000 per 12kg canister from December 1, their highest level since February 2012.

The Vietnam Gas Association says gas is being sold internationally at more than US$1,000 per tonne, US$200 per tonne more than earlier in November.

The Association’s representatives attributed the price hike to this development as well as speculation by retail businesses.

Over the past week, northern regional gas prices rose VND22,000 per 12kg canister, VND10,000 more than the increase in the central region.

Coffee export value falls 24.8% in eleven months

Vietnamese coffee exports are estimated at 1.18 million tonnes worth US$2.51 billion after the first 11 months of 2013, equivalent to year on year drops of 24.4% in volume and 24.8% in value.

The Ministry of Agriculture and Rural Development forecasts November’s coffee export volume will reach 94,000 tonnes worth US$188 million.

The 10-month average coffee export price stood at US$2,138 per tonne, down 0.26%  over the same period last year.

Germany and the US remained the largest consumers of Vietnamese coffee, accounting for 13% and 10.8% of total export volume respectively. Export volumes to Russia rose by 4.7%, to the UK by 5.2%, and to Japan by 4%.

Predictions suggest Vietnam’s coffee sector is facing a disappointing 2013–2014 harvest, as much as 10–15% less than the previous crop.

The US Federal Reserse suddenly announced the end of its QE3 stimulus programme last night, a decision affecting the securities market. Investors could seek alternatives, including coffee.

Telephone and spare parts exports hit record US$20.2 bil high

The Ministry of Planning and Investment’s General Statistics Office announced the past eleven months have seen Vietnam’s telephone and spare parts exports climb to US$20.2 billion, a 78.4% improvement on the same period last year.

Telephones and spare parts are currently Vietnam’s best performing export commodities despite their relatively recent addition to the ranks of the country’s manufactured products.

The GSO noted imports of telephones and spare parts imports also rose 70.7% year-on-year to US$7.6 billion. November’s imports were valued at US$720 million.

The record export figure surpassed the Ministry of Industry and Trade’s second quarter target one month ahead of schedule. Telephones and spare parts also hold Vietnam’s commodity record for export turnover over the past five years.

Vietnam’s telephones are available in almost 30 nations and territories and have helped to reduce the country’s import surplus.

Slovakia’s BTG Holding builds biggest beer factory

The Slovakian BTG Holding Group began constructing a beer factory and thermal power plant on November 29 in Hoa Binh province’s Lac Thinh Industrial Park.

Lac Thinh Industrial Park, in Yen Thuy district, covers 220 hectares and has total investments exceeding  EUR45 million. Its modern, high quality infrastructure includes a hotel, accommodation for managers and workers, customs and banking agencies, post offices, sports and recreational facilities, and medical centres.

Its first two licensed projects are BTG Holding Group’s Slovak beer factory and thermal power plant.

The EUR86 million beer factory will produce the internationally renowned beer label Budweiser Budvar at an annual capacity of 190 million litres. The beer factory will be Slovakia’s biggest in Asia once fully operational, and will export its products to regional markets such as the Republic of Korea, Japan, and China. The factory is expected to begin operations in November 2015, generating 2,000 new jobs.

The thermal power plant will supply electricity to all the industrial park’s factories. BTG Holding Group has committed to meet EU waste discharge, environmental protection and renewable fuel standards. The plant construction project is at a total cost of more than EUR100 million.

November’s industrial production up 5.7%

The General Statistics Office has announced Vietnam’s 11-month index of industrial production (IIP) is 5.6% higher than the comparable period in 2012.

The country’s November IIP in November rose 5.7% from November last year. The processing and manufacturing sectors increased by 8.4%, electricity production and distribution by 8.2% and water supply, sewage, and waste management by 9.8%.

Conversely, the mining sector slipped back 4.2%.

The best performing products over the past eleven months included garments and textiles (up 21.1%), leather production and its related products (15.3%), prefabricated metal excluding machinery and equipment (13.4%), vehicles (12.5%), costume manufacturing (11.4%), electrical equipment (10%), water supply, sewage and waste management (9.6%), medicines and pharmaceuticals (9.4%), and beverage production (9%).

Many industries enjoyed more modest increases, such as electricity production and distribution (8.6%), paper production and paper products (7.9%), and chemical production and chemical products (7.1%).

Vietnam seeks to promote investment in IPs

A workshop was organised in Hanoi on November 29 to discuss measures to attract more investment to Vietnam’s industrial parks (IPs) and economic zones (EZs) in the coming time.

The event was jointly held by the Vietnam Investment Connection JSC and the Vietnam Chamber of Commerce and Industry.

Over the past two decades, IPs and EZs in Vietnam have demonstrated their important role in promoting the country’s economic growth.

The country has a total of 289 IPs and 15 coastal EZs in 59 provinces and cities across the country, contributing more than US$80 billion of the country’s annual import-export turnover and accounting for 35% of the economy’s total import-export turnover.

The IPs and EZs drew about 70% of the total foreign investment flow into the country and created jobs for over 2 million labourers.

According to Deputy Head of the EZ Management Department under the Ministry of Planning and Investment (MoPI) Tran Duy Dong, as of the end of October, 2013, IPs nationwide attracted over 4,700 foreign direct investment (FDI) projects with a total registered capital of US$69.2 billion, equivalent to 80% of the total FDI capital poured into industrial fields.

Meanwhile, the number of domestically-invested projects operating in IPs in the period was 5,100, totalling around US$21.95 billion.

In the first 10 months of this year, US$9.9 billion was invested in IPs and EZs, accounting for 70% of total FDI investment in Vietnam.

However, the development of IPs and EZs is yet to meet expectations as the attraction of investment was affected by the global economic downturn.

MoPI Deputy Minister Nguyen Van Trung said the country should increase investment promotion in the time to come, towards luring investment projects that have advanced technology and high economic value, especially environmentally friendly projects and those in the supporting industry field.

In addition, the country needs to create a favourable investment environment to improve the confidence of investors and remove difficulties for them, he added.

It should also pay attention to upgrading the industrial infrastructure system, build accommodation and other public facilities for labourers, while planning to train human resources to satisfy investors’ demands, Trung stressed.

Foreign NGOs commit aid to Vietnam

Foreign non-governmental organisations (NGOs) will continue seeking financial and technical assistance to support Vietnam’s development projects, especially in poverty reduction and sustainable development.

Foreign NGO representatives made their commitments at a two-day conference that ended in Hanoi on November 29.

The aid will be used to develop programmes and projects suitable with Vietnam’s priorities, increase the capacity of partner agencies and project beneficiaries, and replicate successful tripartite cooperation model (a foreign NGO-a Vietnamese agency-people) across the country.

NGOs committed to introducing the international community to Vietnam’s successful projects and its needs, and providing them accurate information about the country.

The Vietnamese side vowed to create the best possible conditions for foreign NGOs to operate and will work to ensure NGO aid is used and managed effectively and transparently.

Delegates shared the view that despite its significant socio-economic development achievements and its transformation into a middle-income nation, Vietnam still needs international support to address development challenges, overcome the aftermath of war, adjust to climate change, prevent epidemics, and protect the environment.

More than 900 delegates heard reports on 10 years of cooperation between Vietnam and foreign NGOs, future orientations for this relationship, Vietnamese foreign policy, socio-economic development, and foreign NGO project evaluations.

ChildFund Chief Representative Deborah Leaver used the closing ceremony to read back the conference’s Declaration committing Vietnam and foreign NGOs to sustainable cooperation based on mutual understanding, respect, solidarity, and friendship.

Deputy Minister of Foreign Affairs Ha Kim Ngoc emphasised Vietnam’s appreciation for past, present, and future foreign NGO support.

He expressed confidence in the ongoing evolution of their relationship in a manner advancing poverty reduction and sustainable development and—as the conference Declaration asserts—ultimately promoting international peace, cooperation, and prosperity.

Participants praised Vietnam’s policy responses to economic inequality, social issues, and employment.

Vietnam has followed through on the commitments it made at the last conference in 2003, creating a favourable legal environment, cultivating a skilled workforce, and monitoring how foreign NGO aid is deployed.

Vietnam has effective, equitable, and trustworthy partnerships with a wide range of foreign NGOs. These partnerships have benefited Vietnamese individuals, communities, and businesses, raised Vietnam’s international profile, and broadened its diplomatic outlook.

Vietnam, Finland target US$1 billion in trade

Two-way trade value between Vietnam and Finland totalled US$304 million in 2012 and both countries aim to raise the amount to US$1 billion in the coming years.

The figures were revealed at a joint investment seminar in HCM City on November 29, drawing the participation of representatives of more than 100 Finnish and Vietnamese businesses.

Finnish businesses outlined their hopes for long-term relationships with Vietnamese partners. Vietnamese enterprises said success in Finland could springboard export expansion into other European markets.

HCM City urged Finnish businesses to invest in safety technology, its advanced technology industry, and tourism.

Finland and Vietnam established diplomatic ties on November 25, 1973. The bilateral relationship has grown significantly over the past 40 years, particularly in economics.

To meet the US$1 billion target, both sides will strive to effectively implement the Vietnam-Finland investment promotion and encouragement and the Finnish Foreign Ministry’s business partnership programme.

They are also working to balance trade, narrowing the former’s import surplus that has existed since 2011.

Finnish Ambassador to Vietnam Kimmo Lahdevirta said the seminar offered advice on the best way for Vietnamese businesses to penetrate the Finnish market.

Public investment efficiency needs improving

The public investment/GDP ratio has fallen from 31.1% in 2012 to 29.1% in 2013, a decline mirroring the 20.3% to 18.7% year-on-year slide in its State budget share.

The Central Institute for Economic Management (CIEM) announced the figures at a public investment seminar in Hanoi on November 29.

Former CIEM Director Le Ba Xuan said legislation is the foundation for managing public investment and investment as general. Enforcing these laws has improved the efficiency of public investment, but legal loopholes still exist.

Xuan recommended promulgating a Planning Law to support the Government’s overarching socio-economic development strategy.

Economist Nguyen Dinh Anh said restructuring investment should follow the example set by broader State budget restructuring.

Vietnam Economic Science Association General Secretary Nguyen Quang Thai said restructuring public investment will only achieve success if it is accompanied by renovating the entire approach to implementing annual socio-economic development plans.

Thai added an inter-sectoral steering committee headed by the Prime Minister should be assigned the responsibility for overseeing implementation.

Seminar participants also discussed the motivations for restructuring public investment, the relationship between public investment restructuring and economic restructuring in general, assessing public investment projects in Vietnam, and quantitative evaluations of public investment efficiency.

Tay Ninh attracts US$2 billion in FDI

The southern province of Tay Ninh has so far this year attracted 17 foreign direct investment projects capitalised at US$503.98 million, 2.1 times that of the comparable period last year.

The province is now home to 207 valid FDI projects with combined registered capital of more than US$2 billion. Of the total number of the projects, 169 are currently operating.

The Trang Bang Industrial Park has 121 FDI projects, Bourbon-An Hoa 10 projects, and Phuong Dong Boi Loi eight projects.

The province’s 2013 export turnover is estimated at US$1.85 billion, up 17% compared to the same period in 2012. Industrial zone export value is approaching US$900 million, 11% higher than last year’s figure.

At least 3 FDI enterprises boasting significant registered investment capital are scheduled to enter operation in late 2013, including Sailun Tires Company (US$400 million), Fiber Brotex Factory (US$98 million), and Youngil Leather Co. Ltd (US$18 million).

Customs sector looks to modernise

Relations between customs offices and enterprises will be furthered in the next two years in an effort to modernise customs activities, speakers said at a forum in HCM City last Friday.

Leaders of Viet Nam’s General Department of Customs and foreign-direct invested enterprises met to discuss ways to improve linkages between the business community and the customs sector.

Tran Quoc Dinh, deputy head of the department’s Customs Reform and Modernisation Board, said that better relations would help improve management as well as help modernise customs procedures, thus benefiting companies’ import-export activities.

Dinh said that such relationships was one of several key pillars in developing customs in the 21st century, with enterprises taking a proactive role to ensure growth in world trade.

Better relations would entail several channels for enterprises to show their feedback about policies and procedures.

With new platforms between both parties, customs and enterprises would be free to discuss problems and issues, and work more effectively with each other in the implementation of customs laws and regulations.

Next year, a unit will be established to manage relations between customs and enterprises.

“It will be professional and work in accordance with laws and legal documents compiled by customs and enterprises,” Dinh said.

During the dialogue of leaders, the department representatives said that more conditions would be created for companies to receive prioritised conditions in export-import activities.

During the dialogue, organised by HCM City’s Investment and Trade Promotion Centre, more than 220 representatives from customs department and enterprises in HCM City discussed many other problems, such as procedures and e-customs.

All of the obstacles that companies face were included, and solutions were offered.

Also, new regulations proposed in the draft for an amended Customs Law were also discussed.

High-tech milk farming needed

Deputy Minister of Agriculture and Rural Development Nguyen Thi Xuan Thu urged dairy cow breeders to implement advanced technology in order to increase their livestock numbers and improve productivity and quality of fresh milk.

At a conference co-organised on Wednesday in Ha Noi by the Institute of Policy and Strategy for Agriculture and Rural Development, Association of Advanced Technology Enterprise in Agriculture; and the Israeli Embassy in Viet Nam, Thu said that applying advanced technology would help the country reduce dependence on imports.

Fresh milk production currently meets only 28 per cent of demand; moreover, about 20-50 per cent of milk fails to meet the standards of processing companies, forcing them to import the product from overseas, according to the agriculture ministry.

Chairman of the Viet Nam Livestock Association Nguyen Dang Vang said at the conference that imports totalled roughly US$841 million in 2012, making Viet Nam one of the top 20 milk-importing countries.

Vang recommended setting up an educational centre to teach farm owners how to take advantage of advanced technology.

The country aimed to have 500,000 milk cows by 2020 under a strategy to develop the domestic dairy cattle industry approved by the Government in 2008, Thu said.

There are an estimated 170,000 milk cows at present, a number that could be vastly increased by adopting new technology.

Minister of Science and Technology Nguyen Quan said that advanced technology would also help milk processing companies become more competitive.

New firms open with less capital

More than 71,000 businesses were established in the first 11 months of this year, a 9.5 per cent increase over the same period last year, according to the Ministry of Planning and Investment.

However, total registered capital of the new companies declined by 15.4 per cent in comparison with the same period last year , reaching only VND360 trillion (US$17.1 billion).

Last month alone, over 6,800 new firms were established with total registered capital of VND37.5 trillion, increasing 14.6 per cent against the previous month.

The ministry also said that around 55,000 businesses shut down or suspended operations in the period, 8.4 per cent over the same period last year

The service sector is currently struggling because of the slow recovery of the world economy, coupled with domestic difficulties such as low purchasing power and decreasing goods prices. Accordingly, the Government has organised several events to promote tourism and approved development plans in various regions. Total retail and service revenue in the period reached VND2.386 trillion ($114 million), a 13 per cent increase over the same period last year.

The inventory index of the manufacturing and processing industry as a whole rose 9.4 per cent from the same period last year, an optimistic sign for the economy. The gradual recovery of businesses, especially foreign direct invested enterprises, boosted the State budget, which totalled an estimated VND657.6 trillion as of November 15 or 80.6 per cent of the annual target.

Relations with Thailand to develop

Bilateral relations between Viet Nam and Thailand can expect a boost in the areas of trade, investment and tourism, according to an official from the Ministry of Planning and Investment.

The statement was made at a conference in Bangkok on Wednesday, co-organised by the ministry and the Vietnamese Trade Office in Thailand.

The forum aimed to promote investment opportunities in Viet Nam’s central region.

Trinh Minh Van, director of the ministry’s Investment Promotion Centre for Central Viet Nam, said the event would help Thai businesses understand Viet Nam’s current investment opportunities and encourage further investment in the country.

Chokedee Kaewsang, Vice Secretary General of the Board of Investment (BoI) of Thailand, said Viet Nam’s central region was an attractive destination for foreign investors thanks to its rapid economic growth and abundant natural resources.

The Thai Government is committed to encouraging businesses to invest in the region, he said.

The Vietnamese Ambassador to Thailand Ngo Duc Thang described the forum as a first step towards closer ties between localities and businesses in the central Viet Nam and Thai localities and investors.

He also emphasised the importance of conducting continuous trade promotion activities and fact-finding tours to speed up bilateral co-operation.

During the event, enterprises from both countries shared information and examined ways to establish partnerships at the forum.

Bilateral trade and investment has experienced significant gains in the past few years.

Thailand is currently Viet Nam’s ninth largest source of foreign investment with 324 valid projects capitalised at approximately US$6.5 billion.

Trade turnover reached $7.8 billion in the January-October period, up 15 per cent year-on-year.

Co.opmart opens Trang Bang franchise

Saigon Co.op, owner of the Co.opmart supermarket chain, opened a new outlet in Tay Ninh Province’s Trang Bang town on Friday.

Customers purchase goods on the opening day, November 29, of Co.opmart Trang Bang.— VNS Photos Tan Thanh.

Co.opmart Trang Bang has a total area of more than 5,500 sq.m and an investment of over VND90 billion (US$4.26 million). It sells more than 30,000 items ranging from foods to household utensils to cosmetics.

It also provides price-stabilised goods for local residents and neighbouring provinces. With this latest addition, the chain now has 65 outlets nationwide. This is its second outlet in Tay Ninh Province.

Slovakian firm builds brewery, thermal plant

The Slovakian BTG Holding Group has begun work on a 100 million euro (US$136 million) beer factory and thermal power plant in Hoa Binh province’s Lac Thinh Industrial Park.

The park, in Yen Thuy district, covers 220ha and has attracted total investments exceeding 45 million euro. Its modern, high quality infrastructure includes a hotel, accommodation for managers and workers, customs and banking agencies, post offices, sports and recreational facilities, and medical centres. Its first two licensed projects are BTG Holding Group’s Slovak beer factory and thermal power plant.

The EUR86 million beer factory will produce 190 million litres a year of Budweiser Budvar. The factory will be Slovakia’s biggest in Asia and will export its products to South Korea, Japan, and China. The factory is expected to begin operations in November 2015 and generate 2,000 jobs.

Da Nang office leasing continues to be sluggish

CBRichard Ellis Viet Nam Ltd Company (CBRE) has said the office leasing market in central Da Nang City remained subdued throughout much of 2013.

Vacancies decreased year-on-year across all sectors at the expense of falling rents in the Grade B and C sectors.Meanwhile, the Grade A market managed to stabilise rental yields for the year.

Vacancies remain in the market despite new projects nearing completion.The Grade A market will see upward pressure on tenants from limited supply, with no softening in rents expected.

Regional forum discusses rising energy demand

Delegates and experts attending a leading oil and gas event of Southeast Asia yesterday called for closer cooperation to cope with opportunities and challenges concerning the rising energy demand in the region.

The members of ASEAN comprise the world’s 5th largest economy, the third largest population and the 4th largest oil importer, all due to rapid economic development in recent years.

Nguyen Quoc Thap, vice president of PetroVietnam, who is also chairman of the Viet Nam ASEAN Council on Petroleum Conference and Exhibition’s National Committee, said that the ASEAN Economic community would be a reality by 2015.

“The connectivity between our nations are being strengthened, resources are being shared, markets are being unified, creating challenges as the business environment becomes more and more competitive,” he said.

“We see the energy picture of the ASEAN countries as changing and posing challenges for the members of ASEAN council on petroleum. As the economy develops, the energy demand is rising at a high speed,” Thap said.

Thap said that Indonesia and Viet Nam, which had been traditionally energy exporters, now are becoming importers of energy.

Malaysia also needs more Liquified Natural Gas for domestic consumption.

“Because of conventional resource constraints, for the energy security of ASEAN countries, we have to move to unconventional oil and gas substitutes: deep water exploration, shale gas, coalbed methane and others, and go for the international investment market,” Thap said.

Pham Nhu Khanh, vice-president of PetroVietnam Exploration and Production Corporation, in his presentation, said that demand for oil and gas rose day by day from country to country, region to region.

By 2030, in Asia, China and India will have almost double the demand compared to what they use now. Other countries in the Americas will also have more demand.

Mehmet Ogutcu, chairman of Global Resources Corporation in the UK, suggested that ASEAN member countries work together to form a strong group.

Energy demand is growing strongly in Asia, and by 2030, demand will go up to 70 per cent, he added.

Mehmet noted that ASEAN is expected to be the fourth largest oil importer in the world.

This requires a sustainability-driven business model, and closer cooperation to cope with opportunities in the region as well as in the world.

He encouraged more innovation in technologies for efficient exploitation of current conventional resources and exploration of unconventional resources both in the region and in the international market.

Also, cooperation among ASEAN countries and with international players must be enhanced by sharing technological capabilities, experience and high-quality human resources.

Property market shows signs of recovery

The real-estate market has shown signs of recovery but difficulties remain, said Minister of Construction Trinh Dinh Dung.

Dung said in recent months, an increasing number of transactions had followed a long freeze, but small and medium size apartments were still in short supply.

In addition, he said, property prices had been sharply cut after going through a “hot” development period.

Real estate investors had been forced to lower their prices. This often meant trimming back the amount of imported luxury items often used in building.

The minister predicted that sales would increase as prices started matching buyers’ incomes.

Spokespeople for several property companies agreed that the market had become more eventful.

Vu Cuong Quyet, director of Green Land Company’s branch in Ha Noi, said customers had been seeking high quality homes serviced by good playgrounds, roads, schools and hospitals.

Quyet added home buyers were even prepared to pay more for such apartments.

Tran Kien Cuong, general director of Golden Gain Viet Nam Joint Stock Company told online newspaper vneconomy that customers often decided to buy apartments at the end of the year. Large remittances from relatives overseas often arrived at this time.

International property consultant, CushmanWalkfield forecast that the estate market would experience more sales of most types of housing from Vietnamese buyers.

Former deputy minister of Natural Resources and Environment Dang Hung Vo said the property market was now no longer controlled by speculators.

Vo said the quality of homes had improved in the past two years as investors went out of their way to attract buyers.

He added that home buyers wanted accommodation at reasonable prices instead of waiting until prices fell further.

VN hosts Asia-Pacific e-commerce meeting

Domestic and foreign experts in e-commerce and information technology exchanged notes at the 31st Asia Pacific Council for Trade Facilitation and Electronic Business (AFACT) plenary meeting in HCM City.

EDICOM, the annual international conference and exhibition of AFACT, featured the latest technology and information on e-business solutions at nearly 30 booths during the three-day event which ended yesterday.

Fifteen projects in trade facilitation and e-business received eASIA awards, a biennial awards event that recognises efforts within the AFACT community.

The electronic-bank realisation certificate project of India’s Directorate General of Foreign Trade won first prize in the trade-facilitation category.

Viet Nam’s FPT Information System Company was given first prize in the e-business in the public sector category for an electronic customs clearance system (e-customs).

Taiwan’s CyberSoft Digital Services Corp was awarded first prize in the e-business in the private sector category for a secure mobile payment system.

The first prize for bridging the digital-divide category was given to the APEC digital opportunity centre project of Taiwan’s Institute of Information Industry.

The event was organised by the Viet Nam E-commerce and Information Technology Agency under the Ministry of Industry and Trade and the HCM City Department of Industry and Trade.

AFACT, a non-profit, non-political, voluntary and independent organisation, has 19 members in the Asia-Pacific region.

The 2014 APACT meeting will be held in Thailand.

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

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