“PSV BUSINESS NEWS†- Produktionsservice Vietnam
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Consulting & Processing on German quality standard Production. Controlling. Business-Development Investment www.produktionsservice-vietnam.com e-mail: [email protected] “PSV BUSINESS NEWS” WHAT OUR INT’L CLIENTS MAY INTEREST IN VIETNAM Issue: September 2012 INDEX: Editorial Vietnam and Russia will continue expand mutually their economic, trade and investment cooperation. Economic News Loans for Livestock Husbandry, Pork, Poultry and Catfish Processing Highway Construction Gets Priority in Southeast Region Chance to Update Regulations on Shipping & Shipbuilding Ministry Allocates Sugar Quotas Int'l Cooperation US$10.9 Mln for Improving Sanitation, Hygiene Practices in Vietnam, Cambodia British Telecom Eyes Vietnam Market German Ambassador Presents Credential to Vietnamese President Investment Is Industry Capable of Billion-Dollar Projects?
Transcript of “PSV BUSINESS NEWS†- Produktionsservice Vietnam
Consulting & Processing on
German quality standard
Production. Controlling. Business-Development
Investment
www.produktionsservice-vietnam.com e-mail: [email protected]
“PSV BUSINESS NEWS”
WHAT OUR INT’L CLIENTS MAY INTEREST IN VIETNAM
Issue: September 2012
INDEX:
Editorial
Vietnam and Russia will continue expand mutually their economic, trade and investment cooperation. Economic News
Loans for Livestock Husbandry, Pork, Poultry and Catfish Processing
Highway Construction Gets Priority in Southeast Region
Chance to Update Regulations on Shipping & Shipbuilding
Ministry Allocates Sugar Quotas
Int'l Cooperation
US$10.9 Mln for Improving Sanitation, Hygiene Practices in Vietnam, Cambodia
British Telecom Eyes Vietnam Market
German Ambassador Presents Credential to Vietnamese President
Investment
Is Industry Capable of Billion-Dollar Projects?
Economic Sector How Much to Build High-speed Railway?
Finance & Banking
Posted Bank Restructuring Plans Available This Year?
Banks Explain Real Estate Stimulus
Challenging Time for Vietnam Stock Market: Investors Afraid of Losing Money
Markets & Prices
Fast food market readies for new great war Vietnamese Goods on Local Market: Not Deeply Rooted
Gloomy Motorbike Market
Retail Sales See Modest Rebound in July
Export-Import
Vietnam Leads the World in Coffee Exports
Seafood Export Turnover Likely to Reach US$1.84 Billion in Third Quarter
More Support for Exporters
Enterprises
“Outstanding, Creative Labour” Movement in the Oil & Gas Sector: Generating Over US$52 Million and VND380 Billion
Tourism
Rocky Gardens on the Plateau
10th Hoi An-Japan Cultural Exchange: New and Significant Activities
Mekong Delta Attracts Nearly 13 Million Visitors
Fairs & Exhibitions
Discovering Right Machinery and Solutions for Production Upgrade this October
More Development Opportunities for Vietnam Supporting Industry
Reports:
Editorial
Vietnam and Russia will continue expand mutually their economic, trade and investment cooperation. Bilateral trade value in 2011 was US$1.98 billion, 8.1 percent more than 2010 and expected to be US$3 billion in 2012. According to Vietnam-Russia Inter-governmental committee on economic, trade, science and technology, bilateral trade value will reach US$10 billion by 2020. Vietnam and
Customs Alliance (Russia, Belarus and Kazastan) are proceeding with a feasibility study on the establishment of a free trade area and the negotiation will start soon. Russian Federation is expanding big investment projects in Vietnam, especially in such sectors as oil and gas, mining, energy and tourism. Vietnam has increased significantly investments in Russia from over US$100 million in 2008 to US$776 million.Vietnamese government encourages and facilitates Russian investors and businesses in economic cooperation, especially in trade, oil and gas, energy, mining, science and technology, education and training, tourism, etc. And where are the Western Europeans by production and trade at Vietnam’s official investment-rank list? Oh woe, France is on rank 14. Germany is cut off at rank 22. Austria totally knocked off at rank 46. But instead our little neighbor Holland is already at rank 10. On the other hand its not surprising as the Dutch were the first Europeans to sail already around 1450 to the annual superregional spices-market in Hoi-An. For European entrepreneurs in the field of engineering, manufacturing, marketing, purchasing, sales there is now a chance for the entry into the Vietnam Business. See our report: Fairs & Exhibitions, Discovering Right Machinery and Solutions for Production Upgrade Economic News
Loans for Livestock Husbandry, Pork, Poultry and Catfish Processing
Posted: Thursday, August 23, 2012
The State Bank of Vietnam (SBV) recently issued Document No. 5294/NHNN-TD on loans for livestock husbandry, pork, poultry and catfish processing. Accordingly, the SBV asked the chairs of Board of Directors, the chairs of the Board of Members and General Directors of the Vietnam Bank for Agriculture and Rural Development (Agribank), the Bank for Investment and Development of Vietnam (BIDV), Vietnam Bank for Industry and Trade (Vietinbank), the Bank for Foreign Trade of Vietnam (Vietcombank), and Mekong Housing Development Bank (MHB) to instruct loans for households, farms, cooperatives and enterprises to develop husbandry, slaughter livestock, process pork and fowls, culture tra catfish, and process tra catfish for export. The banks were told to review and reassess existing loans as of August 15, 2012, reduce interest rates for eligible existing loans, and extend payment maturity up to 24 months for troubled customers. Banks must continue providing loans for customers with feasible production and business plans with an interest rate of no more than 11 percent per annum. The central bank pledged to provide assistance for the State-owned commercial lenders in case they face troubles in this business. Q.C
Highway Construction Gets Priority in Southeast Region
Posted: Friday, August 10, 2012
The Southeast key economic zone will give capital priority to building four highways and two ring roads from now to 2020. The region will upgrade current highways linking to seaports in Ba Ria - Vung Tau province and other localities. Under the master plan for socioeconomic development in the Southeast region towards 2020 recently approved by the Prime Minister, traffic development will be given priority to lay the groundwork for fast socioeconomic development. Inter-region highways will be built, including Ho Chi Minh City - Long Thanh - Dau Giay, Ben Luc - Long Thanh, and Bien Hoa - Vung Tau. Apart from construction high-speed roads, the Ministry of Transport and concerned localities will build roads to connect trunk roads in the region. Particularly, the upgrading of National Road 51 (from Ho Chi Minh City to Vung Tau) is being completed and put into operation at the end of 2012. This traffic will interlink highways in the region like HCM City - Long Thanh - Dau Giay, Bien Hoa - Vung Tau and Dau Giay - Phan Thiet. Kim Ngoc
Chance to Update Regulations on Shipping & Shipbuilding
Posted: Friday, August 10, 2012
The Asia Register Technical Conference (ACS), themed “New regulations on shipping and shipbuilding”, is set to be held at New World Hotel, Ho Chi Minh City on August 22, 2012 by Asia Registrars Association. This is a good chance for shipbuilders, ship owners and ship operators to update and exchange information about international maritime regulations. The event will bring together maritime associations in Vietnam, Indonesia, Singapore, Malaysia, Hong Kong, South Korea, Japan, China and India. The Asian Registrars Association said when global trade patterns have moved to the east and a rising number of decisions related to shipping are reached in Asia, the ocean shipping community in Asia should clearly express a more powerful and influential "Asian voice" on international shipping arena. Gia Hoa
Ministry Allocates Sugar Quotas
Posted: Thursday, August 09, 2012
Instead of inviting bids from companies, the Ministry of Industry and Trade has set individual sugar import quotas of 70,000 tonnes this year for food processing enterprises. Phan Thi Dieu Ha, deputy head of the ministry's Import-Export Department, announced the quotas at the meeting held in Hanoi on Monday. 50,000 tonnes will be allocated for enterprises that rely on sugar for their production, while the remaining 20,000 tonnes will be distributed to businesses selling to customers. Ha did not reveal the number of businesses that were assigned the quota. The Vietnam Sugar and Sugarcane Association (VSSA) previously proposed to scrap the system of setting individual sugar import quotas for food processing enterprises to create transparency while ensuring steady demand for sugar. In response to the proposal, she said the department has received the VSSA's suggestion and exchanged ideas with the Multilalteral Trade Policy Department which was in charge of importing sugar. She said under the WTO commitment, the import would have to be allocated into the quota. If the industry wanted to shift from the quota system to invite for bids, it would have to negotiate with WTO's member countries. She added that the two departments would continue to research the proposal. The Ministry of Agriculture and Rural Development allowed Vietnamese companies to import 70,000 tonnes of sugar this year despite sufficient supply in the domestic market in order to keep up with WTO commitments. VNS
Int'l Cooperation
US$10.9 Mln for Improving Sanitation, Hygiene Practices in Vietnam, Cambodia
Posted: Thursday, August 23, 2012
East Meets West has received a US$10.9 million grant from the Bill & Melinda Gates Foundation to improve sanitation and hygiene practices among poor rural communities in Vietnam and Cambodia in the next three years. Open defecation and the unsafe disposal of human waste result in an estimated 17,000 deaths annually, 90 percent of which occur in children under age 5 – and US$1.2 billion in economic losses each year. The grant is the first of its kind from the Gates Foundation to support a results-based approach to sanitation and hygiene aid, which requires an initial investment from recipient families and communes, and then rewards them when results are achieved. East Meets West was awarded the grant to expand their unique business model, which applies an integrated, community-driven approach to supporting sanitation and hygiene-related behavioural change among the rural poor. The programme combines community-based education about proper sanitation and hygiene; access to credible sources of financing for families to install latrines and hand washing devices in their homes; a cash rebate to families once installation and use of a latrine has been independently verified; and conditional cash transfers to communes that achieve at least a 30 percent increase in sanitation coverage. Thanks to this approach, the programme will benefit 1.7 million people in 344,000 households and 290 communes in Vietnam and Cambodia, which represents a significant undertaking in hard-to-reach rural communities. About 50 percent of households in Vietnam and approximately 80 percent of households in Cambodia do not have sanitation facilities, according to government data. Do Ngoc
British Telecom Eyes Vietnam Market
Posted: Wednesday, August 22, 2012
The British telecom giant is seeking business opportunities in Asian countries with high growth and large population, including Vietnam. Channelnewsasia.com reported that BT regards those potential markets of Vietnam, the Philippines and Indonesia as key drivers of its expansion strategy in the near future. The news wire quoted Tim Harris, CEO of British Telecom Southeast Asia, as saying BT plans to double its market share in Asia. "We're very positive on Asia. We grew a double digit growth last year, and our intention is to grow twice the size at the market,” said Harris. “We'll be investing significantly further into the region. Because that's where we see our customers investing a lot at the moment."
BT said the Asian market for its services is growing strongly at 6 percent a year overall and 15 percent for managed services. It estimates that the Asian market for its services is worth 8 billion pounds (US$12.56 billion). VOV
German Ambassador Presents Credential to Vietnamese President
Posted: Friday, August 17, 2012
On August 14, German Ambassador to Vietnam Jutta Frasch presented the credential to Vietnamese President Truong Tan Sang. With this ceremony, the German diplomat officially took office in Vietnam. She stressed she will try her best to implement the commitments in the framework of strategic partnerships mentioned in the Joint Declaration signed in Hanoi in late 2011 and strengthen the two-way cooperation. One year after the signing of the Hanoi Declaration, this is the time to deploy the next step of lighthouse projects like German House or German International School in Ho Chi Minh City. On this strategic partnership basis, Vietnam is an important partner of Germany in Southeast Asia. In return, Germany is the largest trade partner of Vietnam in the European Union. Their cooperation in such areas as culture, science and development has been closer than ever. Giang Tu Investment
Is Industry Capable of Billion-Dollar Projects?
Posted: Thursday, August 16, 2012
In the first 7 months of 2012, Vietnam attracted US$8.03 billion of foreign direct investment (FDI), in which, investment in industry accounted for nearly 70 percent of total registered capital, but most projects were small-scale. This situation makes many people wonder that whether Vietnam’s industry is attractive enough for big projects. But Mr Phan Huu Thang, Director of Research Centre for Foreign Investment, asserted that industry in Vietnam is still attractive and in the future there will be billion-dollar projects invested in this sector. In recent years, registered FDI in Vietnam has continued to decline. What is the reason? Although FDI inflows into Vietnam in general are declining, implemented capital remains stable at an average of about US$11 billion a year, but it can no longer maintain the growth rate like the previous stage. There are a number of causes for this, including business environment, poor infrastructure, lack of skilled human resources, limited administrative procedures and land clearance for FDI projects,
and that the management of licensed FDI projects has not met the investment requirements, all of which lead to low FDI attraction and disbursement. In addition, the past general economic instability, indicated by high inflation, high interest rates and a number of domestic enterprises facing difficulties, have also made the investment environment less attractive. Besides, the unstable situation of the world economy and the difficulty of a large number of partners in Vietnam's FDI such as Japan have a direct effect on Vietnam’s FDI attraction. What is your review on Vietnam’s FDI attraction in the first 7 months of 2012? Is the goal of attracting about US$15-17 billion likely to be realised? In the first 7 months, realized FDI reached US$6.35 billion, which is about 99.2 percent of the same period last year. The newly and additional registered capital reached US$8.03 billion, up by 66.9 percent over the same period. It showed that the aim to attract US$15-17 billion in FDI in 2012 is too high to reach. There are now only 5 months to the end of 2012, and there has been no information on large scale projects in the process of evaluation or negotiation. According to the report by the Foreign Investment Agency, the first 7 months of 2012 housed only 1 FDI project with capital over US$1 billion and it was in the real estate sector. Projects investing in industry often have very low capital. So is industry in Vietnam incapable of large FDI projects? In the first 7 months of 2012 the total registered FDI in processing and manufacturing still accounts for almost 70 percent of the total registered capital. However, these projects are in small scale. But it does not mean that Vietnam's industry is incapable of attracting large-scale FDI projects. In previous years, we licensed many large scale projects in steel, petrochemical, telecommunications, electronics and mechanics, and in the future, with a new investment promotion orientation, the country will certainly have large scale industrial projects and a high concentration of industry in Vietnam. In your opinion, to attract large FDI projects in the industrial sector, what do we need to do now? To attract large-scale FDI projects in the industrial sector, first we need to have large scale industries to attract foreign investment. These projects must first be included in Vietnam’s industry development plans to 2020, and designed comprehensively to attract FDI from outside. Also, investment promotion should be prepared in accordance with international practice, which has clearly defined forms of investment, location, land and other conditions of associated infrastructure and investment incentives, then the specific investment promotion approach to invite potential investors. And another important thing is the support of large FDI enterprises currently operating in Vietnam which will also have impact on the attraction of large-scale industrial projects in Vietnam in the near future. VEN
Economic Sector
How Much to Build High-speed Railway?
Posted: Wednesday, August 22, 2012
The Japan International Cooperation Agency (JICA) has unveiled the schedule for the construction of high-speed rail at the meeting of the steering committee in charge of priority express railways in Vietnam. Oriented high-speed railway sections are Hanoi - Vinh and Ho Chi Minh City - Nha Trang. Deputy Transport Minister Nguyen Ngoc Dong and Minister’s Senior Assistant Ngo Thinh Duc chaired the meeting.
High transportation demand According to JICA studies on high-speed railways on Hanoi - Vinh and Ho Chi Minh City - Nha Trang sections, the capacity and speed of trains on existing railroads are limited because of many bottlenecks. Moreover, degenerated railway infrastructure insufficient crossing safety measures make trains operate less efficiently and face traffic safety risks. Train speed is reduced in many sections like Hoa Duyet - Thanh Luyen, Khe Net Pass and Hai Van Pass. JICA experts forecast the demand for railway transport on the north-south run will surge and exceed the capacity of the current system. By 2030, train frequency will exceed 50 trips a day on both directions. This is also the maximum capacity of the current route. Moreover, with the current track widths, it is hard to raise the train speed to 120 km an hour on priority sections. In north-south railway development scenarios introduced by JICA, Hanoi - Vinh and Nha Trang - Ho Chi Minh City sections are overloaded. Its studies recommended four development schemes for the north - south route. Option A1 is to ensure the moving train safety. With single-track rail with a width of 1 metre, passenger trains run at 90 km an hour while freight trains move at 60 km an hour. The time for completing a railway trip from Ho Chi Minh City to Hanoi is 29.1 hours. Option A2 is to promote the transport capacity on the single-track rail of 1 metre width. The maximum speeds for passenger trains and freight trains are 90 km and 60 km an hour. The travelling time from Ho Chi Minh City to Hanoi will be shortened to 25.4 hours. Option B1 is to enhance transport capacity by using double-track rails and increasing train speeds to 120 km an hour. The maximum speeds for passenger trains and freight trains are 120 km and 70 km an hour respectively. The time for travelling from Hanoi to HCM City will be 15.6 hours. Option B2 is to build double-track railways to increase maximum train speed to 150 km an hour. How to mobilize capital? According to JICA, the investment capital for these options will range from US$1.8 billion to US$27.7 billion. Option A2 is preferred for upgrading the north- south route but the Option B1 is chosen for high-demand sections. Total investment capital will reach dozens of billions of US dollars. This huge amount of capital needs good management. According to JICA, we can establish high-speed railway corporation (which will be privatised later) responsible for operating and maintaining locomotives and carriages. Vietnamese State-owned banks and local and Japanese private investors will lend capital. The State will assume infrastructure construction capital. And, to attract private investors, we need measures to limit risks of inflation, exchange rate fluctuations, site clearance and demand overestimation. Nguyen Van Doanh, Deputy Director of Vietnam Railway Department, said: JICA’s studies contain some irrational points. He cited that they suggested current speed of 90 km an hour. But, in reality, only two sections can reach this speed while the rest is lower. With current capacity and future development, Option A2 and Option B1 chosen are suitable. But, the amount of money needed to clear seven bottlenecks may exceed US$1.8 billion. Tran Quoc Dong, Deputy General Director of Vietnam Railways Corporation, said the transport demand on Ho Chi Minh City - Nha Trang route is in fact much higher than that in JICA’s studies. Besides, route directions have not been discussed with localities while this move may affect their overall development planning. “Currently, many localities have planned for high-speed railways. The Japanese side will continue to work with localities with railway running past to supplement its studies,” he said.
Finance & Banking
Posted Bank Restructuring Plans Available This Year?
Wednesday, August 22, 2012
At this point, only Global Petro Bank (GPBank) has not submitted its restructuring plan in Hanoi while a rumour about M&A performed by PetroVietnam Finance Corporation (PVFC) is spreading in Ho Chi Minh City. In early 2012, the leader of the State Bank of Vietnam (SBV) announced the intention to merge 5 - 8 banks in the first quarter of 2012. However, while the third quarter is almost over, only two banks - Habubank and SHB – have completed their restructuring plans. This is the first merger in the year. Dau Tu (Vietnam Investment Review) on August 15 quoted SBV Deputy Governor Dao Minh Tu as saying that except for Habubank (HBB), no optimal restructuring plans for weak banks have been submitted to the State Bank for consideration. "The SBV is actively instructing but the pace of mergers and acquisitions (M&A) depends on whether banks have optimal and suitable plans or not. At present, many banks are actively negotiating with each other on the voluntary basis. We hope the process of weak bank restructuring in 2012 will reach goals,” Tu said. Another SBV official added that weak banks are busy with negotiating with domestic and foreign partners. But, to avoid information leakage as happened to Habubank, all banks keep negotiation process in complete confidentiality. This is also a request of the central bank for bank M&As. Moreover, some cases ended because negotiation process could not resolve disagreement in last minutes. Therefore, early information about restructuring plans is not good for the market. According to many banking experts, some bank M&As may be reached in the last four months of 2012. Nguyen Thi Mai Suong, Director of SBV - Hanoi Branch, said Hanoi has three banks subjected to restructuring and two have now completed their restructuring plans. Specifically, the Government approved the self-restructuring plan of TienPhongBank and Habubank has officially approved to merge on SHB. “Currently, in Hanoi, only Global Petro Bank (GPBank) is subject to restructuring. The bank is in the process of self-handling and has not completed restructuring plan to submit to the SBV - Hanoi Branch,” said Mai Suong. Meanwhile, in Ho Chi Minh City, PetroVietnam Finance Corporation (PVFC) is rumoured to negotiate an M&A. Previously, PVFC CEO Nguyen Thien Bao said his firm planned to transform into a commercial bank. The transformation is done if PVFC merges with an existing commercial bank. But, there will be a legal problem if PVFC is converted into a commercial bank as Vietnam National Oil and Gas Group (PetroVietnam) will hold stakes in two commercial banks (PVFC and Ocean Bank). Legally, State-run PetroVietnam will have to divest from an entity or two entities merge together. Many experts expressed their fear that the restructuring process may be slowed down. As soon as banks are free from liquidity risks, they will seek to delay restructuring plans. If this is the case,
the system safety will be worsened. Hence, the SBV needs to add weight on the restructuring process.
Banks Explain Real Estate Stimulus
Posted: Tuesday, August 21, 2012
Why are Vietnamese banks still generous with home loans in spite of questionable effectiveness? In fact, leaving behind concerns over the safety of credit institutions, banks are also businesses. They care about the biggest profit from their operations, regardless of consumer and manufacturing loans. Generosity engendered by high demand In the latest three months, Vietnamese banks started cooperating with developers to provide soft home loans, which are characterised by so-called interest rate subsidies. In a prolonged lacklustre market, the opening of credit valve for property market was said to be necessary to boost the market heavily reliant on bank loans. This move was led by big lenders like Vietinbank, Vietcombank, BIDV and VIB. Their home loan packages, worth thousands of Vietnamese dong, lend up to 70-90 percent of apartment value. In reality, capital flows from banks have left a positive impact on the real estate market. According to a survey in late July, realty transactions resumed, although they were not as active as earlier. A Vietcombank representative said zero-interest loan received positive response from customers. The Hanoi-based lender officially extended the maturity of home loans for purchasing apartments at Indochina Plaza Hanoi (IPH) for another month (August 5 to September 5, 2012). A representative from Indochina Land, the investor of IPH, said interest rate subsidy will trim earnings for the company and banks, but it is necessary to extend the programme for one more month to sell more products. Nguyen Tat Thinh, Head of Personal Banking Division, VietinBank, said seeing the very high housing demand of financially limited customers, VietinBank launched a VND5,000 billion home loan programme for personal borrowers in July. This was the biggest preferential credit programme for individual customers launched by VietinBank. After a period of mixed public response to real estate stimulus, the VietinBank representative added that “Even this, the biggest stimulus programme, meets only a fraction of housing demand. If demand continues to grow strongly, VietinBank will increase the value of the programme or launch new packages with greater value." Selectively loosening? According to industry insiders, the current hardships of the real estate market are not over and a decisive factor to overcome this tough time is credit policy. Once credit is loosened, interest rates fall and the real estate market will revive.
Nguyen Van Duc, Deputy Director of Dat Lanh Real Estate Company, said that compared with investment costs, property prices are somewhere in the bottom. The demand is huge but house prices are unaffordable for most buyers. They need to borrow money from banks to buy houses. Actually, without interest rate subsidy, many people do not dare to borrow. Therefore, the best way to create liquidity for the market is to open access to low-rate loans for home buyers. According to VnEconomy, many banks want to increase real estate credit to enhance market liquidity and support people to buy houses. But, that does not mean banks will be easy on all real estate projects when investors ask for loans for home buyers. “Our standpoint is, in the present context, we are willing to share difficulties of businesses and support them to live through this crisis period because it relates to the operating efficiency of banks. However, the support must be selective,” said the Vietinbank representative. If borrowers really need money to buy houses, lending stimuli from banks are necessary. However, they must carefully evaluate the prestige and capacity of investors, and quality, schedule, location and price of projects, before providing any support. It is very dangerous for banks to use short-term deposits to lend property projects because they want to achieve credit growth targets or make a profit. That short-term business thinking is unsuitable for commercial banks. Banks have confirmed that interest rate support for home buyers will be carried out carefully and supported projects will be limited to ensure safety and effectiveness for all stakeholders. However, the number of supported projects is growing rapidly. At this point, VietinBank is dealing with 43 property investors to fund home loans, an increase of 12 investors since last month. Vietcombank is now supporting 38 projects. EVN
Challenging Time for Vietnam Stock Market: Investors Afraid of Losing Money
Posted: Thursday, August 16, 2012
Paying the price for the period of relentlessly opening branches, trading offices and headquarters, securities companies in Vietnam are shutting down one after another, removing fabulous signboards, even changing headquarters to avoid angry customers. In this ordeal, many investors feel puzzled when money in their accounts is at risk of being lost.
Afraid of losing money There is still discussion during the last few days about an investigation into SME Securities regarding individuals who have been involved in the fraud case. The Chairman and CEO as well as Vice Chairman have all been arrested. Accordingly, many people are concerned about losing their hard-earned money, as in the case of SME, because of the relatively low transparency of the market. Mr Hung, an investor with an account at SME, said that he was lucky to finish transferring his money out when problems had just arisen at SME and thus is not stuck. According to him, a number of investors were not fast enough to withdraw the outstanding balance of their accounts in the SME case. Another investor revealed that a couple of months ago, knowing that the securities company was losing its liquidity, using his connections to create pressure, he eventually succeeded in withdrawing around VND100 million. But the number of investors as lucky as the two above in the SME case is few and far between. An anonymous investor complained, "Since late 2011, this company has had a history of losing its liquidity. The deposit department frankly said that there was not enough money and that customers would have to wait in the next two or three weeks to withdraw their money. At the moment we just have to wait." Ms Nguyen Thi Hong living in Thanh Hoa province expressed her frustration about the sudden closure of a Thanh Hoa branch of An Binh Securities Company, where she opened an account. Accordingly, on July 31, she received a notice by phone regarding the closing of the Thanh Hoa branch of An Binh Securities effective from August 2012 and investors would have to place their orders using other means such as telephone, internet or text message. However, when being transferred to the company's telephone exchange to place her orders, she learned that the staff on call had not updated her account information yet. This effectively ruined her selling order on that day and caused damages. Ms Hong's story is not unique. Ms Hien in Ho Chi Minh City, an investor at Sacombank-SBS Stock Exchange, lamented that she has to go to the company's headquarters to place her orders because there are currently no SBS branch and trading office in Ho Chi Minh City. In fact, several other securities companies have recently issued notices regarding the closure of their trading offices and branches in Ha Noi, Ho Chi Minh City and other provinces. How to safeguard an account Since late July 2012, Vietnam Trade and Industry Securities Company has announced their decision to shut down their branch in Hue and withdraw their trading profession; Truong Son Securities Company withdrew their brokerage profession and closed down their branch in Ho Chi Minh City; MB Securities shut down their trading office at Khuat Duy Tien (Hanoi); Golden Bridge Securities shut down their Hanoi branch; the securities company under Vietinbank shut down their office at Thai Thinh (Hanoi) At the moment, SME is one of the four, together with Hanoi, Truong Son and Dong Duong Securities Company, to have their brokerage licenses withdrawn Further investigation reveals that with the exception of SME, the websites of the other three companies are inaccessible. Many investors who wish to withdraw their money have to seek the approval of securities companies, and even with approval, they cannot withdraw a large sum all at once. From the SME case, economic expert Dinh The Hien analysed: "It would be much safer if securities companies allow banks to manage their accounts, compared to if they manage these accounts by themselves. Tens of millions of VND that each investor puts in is a small sum, but if multiplying by hundreds of investors, it is a huge number." According to Mr Hien, the key lesson is that smart investors need to know how to protect themselves, but not to blame their circumstances. Mr Le Vuong Hung, Deputy Director of Brokerage Division at Rong Viet, also said: There are two choices: investors either choose a securities company with a reputable brand and safe transactions; or a security company with high financial leverage, low transaction fee but potentially high risks.
Also according to Mr Hien, the common trend is that securities companies whose operations are not efficient will gradually disappear. Investors will have to pay a hefty price should they choose a securities company which is too easy in opening an account or providing their services. TP
Markets & Prices
Fast food market readies for new great war
VietNamNet Bridge – The information that Starbucks Coffee and The Johnny Rockets are now at Vietnam’s door, ready for the penetration into Vietnam, has heated up the fast food franchising market.
Some months ago, a Gloria Jean’s Coffees shop on
Dong Khoi – Nguyen Thiep Street had to shut down because of the overly high retail premises rental.
Vietnam is a lucrative market In some more days, on the streets in Vietnam, where there are a lot of fast food shops bearing the US brands KFC, Subway, South Korean Lotteria, Filipino Jollibee, a new chain of shops with the brand “The Johnny Rockets” would arise. Steve Devine, Chair of Johnny Rockets, said that the group has decided to penetrate the Vietnamese market under the mode of franchising after four years of surveying the market. At the ceremony on declaring the cooperation with CB Richard Ellis Vietnam (CBRE) in HCM City held recently, Mr Steve Devine said that The Johnny Rockets plans to open 10 shops in the next 10 years in Vietnam. Meanwhile, the US Starbucks Coffee is completing the final step before officially entering the Vietnamese market, slated for 2013. However, Starbucks Coffee seems to take cautious steps with its business plan in Vietnam. Unlike other fast food brands, Starbucks Coffee does not intend to enter Vietnam through the franchising, but it would team up with a Vietnamese partner to set up a joint venture. However, the presence of Starbucks Coffee would be certainly the big threat to The Coffee Bean & Tea Leaf, Gloria Jean’s Coffee, Highlands Coffee and Trung Nguyen Coffee – the well known coffee brands existing in Vietnam. Vietnam has emerged as an attractive franchise market for the US big guys. KFC of the US Yum Brands Group is a typical example. The brand entered Vietnam in 1997 and it only began making profit in 2004. However, the chain has been developing very rapidly since then. To date, KFC still has been leading the fast food market in Vietnam with 100 shops open in nearly all big cities. It is expected that KFC would have 116 shops by the end of the year.
Meanwhile, Lotteria, a subsidiary of South Korean Lotte Group, after opening 100 shops in 2011, has announced that its number of shops would rise to 200 in the next five years. Though many big names have been present in Vietnam, but the market is still big enough for new comers. Therefore, analysts believe that the giants in the fast food sector would, one after another, flock to Vietnam in the near future. If so, the Vietnamese market would witness a cutthroat competition among the existing giants like KFC and Lotteria, and the new comers, who are all redoubtable rivals. Vietnam has opened its market door to franchising, but this remains the playing field for foreign brands so far. Lawyer Ho Huu Hoanh, Director of Viet Franchise Center, affirmed on Dau tu that the biggest barrier now is not the legal framework. He said the franchisers still need to consider the infrastructure conditions and seek suitable partners. Most of the existing fast food chains are gearing up to enlarge their network this year. Subway, for example, plans to open two more shops in October and December 2012 in HCM City, according to Bui Le Bich Tram, marketing Director of the company. Big challenges ahead According to the Ministry of Industry and Trade, in 2011, the total fast food sales in Vietnam reached 870 billion dong, up by 30 percent over 2010. The market is being controlled by foreign brands such as KFC (the US), Lotteria (South Korea) and Jollibee (the Philippines). Franchisers should be informed that though Vietnam is really a lucrative market, they would meet big challenges when entering Vietnam. Some months ago, a Gloria Jean’s Coffees shop on Dong Khoi – Nguyen Thiep Street had to shut down because of the overly high retail premises rental. Meanwhile, Pham Viet Anh, a branding advisor to Left Brain Connectors, said on Nhip Cau Dau tu that it would be really difficult to localize the products to fit the taste of local people. Complied by C. V
Vietnamese Goods on Local Market: Not Deeply Rooted Posted: Wednesday, August 22, 2012
After nearly three years launching the “Buy Vietnamese” campaign which persuades Vietnamese consumers to give priority to Vietnamese goods on their shopping list”, consumers in Ba Ria - Vung Tau province have basically changed their perception of the value of Vietnamese goods and benefits of using goods made by domestic producers.
However, according to campaign steering committee, this programme still has certain limitations and Vietnamese companies need to work harder to make their goods rooted deeply in the domestic market. Currently, consumers fully understand that using Vietnamese goods is a practical action, a sign of patriotism, self-reliance and national pride. Using Vietnamese goods also helps companies boost production of high-quality goods to meet consumer demand in the country, and enhance competition against foreign rivals. As for manufacturers, the campaign has added their resources to expand production and further improve quality and prestige of products and services. Impression The “Buy Vietnamese” campaign in Ba Ria - Vung Tau province has gathered all walks of life, from officials, civil servants to merchants, businesspeople, workers and farmers. The movement has created a cohesive glue to interlink administrators, producers, distributors and consumers, aiming at the ultimate goal of making Vietnamese goods the mainstay on the domestic market. The focus of the campaign is the “bring Vietnamese goods to the countryside" programme. Images illustrating promoters and salesmen handing goods over to countryside consumers are quite familiar now. In response to these efforts, countryside farmers also wait and accept Vietnamese-branded merchandises in lieu of foreign ones. The “bring Vietnamese goods to the countryside" programme is organised more often and more carefully with more products to meet the growing demand of consumers. In the first six months of 2012 alone, six countryside sales were organised in localities, earning more than VND7 billion. Notably, each trip has new companies registering to join. Apart from popular Ba Ria - Vung Tau faces like Baseafood, Hoang Dung, Co-op Mart, Cau Vong and Van Tuong Garment, many companies from other provinces and cities like Vocarimex, Tam Linh, Acecook Vietnam, and Uni President Vietnam have joined the campaign. Now, many companies have realised the actual benefit that they can sell products without much less expenditure for advertising and marketing by joining the campaign. Some grasped the opportunity to build distribution networks in the province, and tap potential rural markets. According to the campaign steering committee, in spite of many successes achieved, the programme still has many limitations. More goods should be introduced to countryside marketplaces. Currently, conventional markets are dominated by foreign goods and smuggled goods. Consumers there have little opportunity to access locally made products because producers have not established close ties with market management boards, market management authorities, and merchants to set up distribution networks and arrange goods in marketplaces. Vendors in conventional markets lack interest in exhibiting, introducing and promoting Vietnamese goods to consumers. Shallow To make Vietnamese goods the first choice rather than priority choice on the shopping list of consumers, perhaps, producers and authorities must work harder to change the reality. Mr Truong Van Thoi, Director of Ba Ria - Vung Tau Trade Promotion Centre, said: The effectiveness of the “Buy Vietnamese” campaign where the “bring Vietnamese goods to the countryside” is the core depends on canvassing activities. In reality, more buyers went to buy in localities with better propaganda activities. Do Thi Ngoc, Vice Chairwoman of Ba Ria - Vung Tau Consumer Protection Association, said: Strict handling of trade frauds in business activities is also very important. She explained that when consumers trusted in Vietnamese goods, low-quality foreign goods are stuck Vietnamese brands to swindle consumers. This stains the reputation of domestic companies. I hope authorities will intensify inspection and handle violators and hope vendors will not abet fraudulent acts. Hoang Van Minh, Director of Baria Vungtau Seafood Processing and Import Export Joint Stock Company (Baseafood), said: "Consumers must be respected. From practical experience on the domestic market, we see that product quality is vital to businesses. It will be a mistake to undervalue domestic consumers. All Baseafood-branded products sold on the domestic market are guarantee quality, hygiene and safety standards certified by quality authorities. Designs, packages, packing standards are continuously improved to catch the attention and sympathy of consumers. Price must be reasonable and affordable.” Pham Thi Huynh An, Deputy Director of Co-op Mart BR-VT Supermarket, said: Vietnamese goods must be cheap enough to attract consumers. Retailers must always have give priority to Vietnamese goods. At present Vietnamese goods account for more than 90 percent. Vietnamese
people, particularly rural people always prefer cheap prices. Hence, goods sold in the countryside are discounted 5 - 40 percent. Then, to root deeply on the domestic market in the coming time, consumers must understand the purpose and significance of using Vietnamese goods. Producers must focus on improving their quality of products and services, protect legitimate rights of consumers, etc. L.P
Gloomy Motorbike Market
Posted: Tuesday, August 21, 2012
Motorcycle companies recently introduced a lot of new models with different price segments in the Vietnamese market. Traders and agents still use tips to sell at high prices but consumers seem to have weak demand and lack interest. Since the start of this year, motorcycle manufacturers have launched many new models to stimulate purchasing. For example, Yamaha introduced Exciter 2012 and Nozza special edition. Honda upgraded Wave RSX, and most recently cheap SH 125 and 150 localised scooters. SYM launched Attila Elizabeth 2012 and Attila Passing. Piaggio marketed sporting Liberty and legendary Vespa PX, which is priced nearly VND130 million each unit. Sluggish demand However, motorbike markets in Ho Chi Minh City like An Duong Vuong, Nguyen Tri Phuong (District 5), Phan Dang Luu, Hoang Van Thu (Phu Nhuan) and authorised agents do not find many customers. Major retailers like Quang Phuong (District 5) and Ly Tu Trong (District 1) have only a few visitors day. Nguyen Tan Phong, a motorcycle shop owner on Nguyen Tri Phuong Street, said the motorcycle market is slack. The market was warmer in the past days because many families bought the motorised two-wheeler for their children after passing university exams. But, their choices are budget models like Honda Wave and Yamaha Sirius. While touring some motorbike shops on Nguyen Tat Thanh Street (District 4), Nguyen Minh Hung, a resident on Mai Van Vinh Street (District 7), said: “I am finding a motorbike for my son to study at a university in Thu Duc District. But, I have not made decision because I feel over VND20 million a unit is too expensive. Maybe, I will consider a second-hand one.” Still overcharging Unlike car sellers whose sales figures are published monthly, motorbike sales are not public. A communication official working for a motorbike company, who wanted to remain anonymous, said sales dropped a lot from previous years. However, he refused to provide a figure. Other vehicle sellers also did not give exact sales data.
According to a survey, many motorcycle models are selling at lower prices than recommended rates from manufacturers. For example, a Honda Lead scooter is sold for VND35 million, a Honda Vision scooter for VND26.8 - 27 million, a Yamaha Nouvo scooter for VND34 million, Honda PCX scooter for VND54.5 - 55.5 million, a Honda Air Blade scooter for VND37 - 37.2 million, and a Yamaha Nozza scooter for VND34 million. Yamaha Cuxi is offered at a third of the price recommended by the producer. Tran Huu Thai, owner of an imported motorcycle shop in Ly Tu Trong Market, District 1, said imported motorcycle sales have never been as poor as now. The market showed no signs of recovery although prices dropped from 15-20 percent. Unlike launch fevers in previous years, Honda did not create a similar phenomenon with its budget Honda SH 125 and 150 scooters. However, it is not easy to buy a Honda SH at quoted prices on official channels. Prices are overcharged as usual. Hong, a salesgirl at Honda Head shop on Nguyen Trai Street (District 1), said many visitors asked for information about the new models but the number dropped as time went on. SGTT
Retail Sales See Modest Rebound in July
Posted: Thursday, August 02, 2012
Retail sales value of goods and services in July surged 0.12 percent to US$9.10 billion, according to the General Statistics Office (GSO). The increase, though modest, has helped lift the total retail revenue in the past seven months to US$63.22 billion. This number represents an increase of 6.8 percent from 2011, and the rate is the highest level since the beginning of this year, the GSO said. GSO expert Vu Manh Ha attributed the rebound in domestic purchasing power to the State's influential policies, which encourage local consumption, facilitate promotion programs and bring goods to rural areas - as well as the ongoing efforts of retailers and supermarkets to slash prices, cutting items' cost as much as 70 percent. The seven-month gain in retail trade has also had an impact on the nation's Index of Industrial Production (IIP) which rose by 4.8 percent year-on-year, with increases of 4.2 percent in the first half and 4.1 percent in the first quarter. As of July 1, the stockpile index surged by only 20.2 percent against the same time last year, far lower than 29-35 percent recorded in the first three months and four months respectively. However, Ha said, the index is still double what it will be in a more stable economic context.
Vietnam's total retail revenue is expected to increase by 23 percent per year between now and 2014, according to a report by AT Kearney. This means the Vietnamese retail market is offering many opportunities for both domestic and foreign retail businesses. The report, "Vietnam Retail Market Forecast to 2014," said that modern retail channels will play a crucial role in future growth, improving their position in the market. Increasing purchasing power and changing lifestyles have been some of the key growth drivers in the country's modern retail market, it said. The modern retail market will be the key distribution channel in Vietnam in the near future due to its huge market of nearly 90 million consumers, AT Kearney's report predicted. Vietnamese consumers' shopping habits are changing, with more spending in modern retail outlets due to consumer concerns about convenience and health issues. Many consumers said that modern retail outlets gave them good access to new products, more confidence in food safety, and clean facilities. The country currently has 636 supermarkets, 120 commerce centres and over 1,000 convenience stores. Experts said this figure still does not meet the demand. As a result, Vietnam's retail market holds many opportunities for both foreign and domestic investors. VNA/VOV online
Export-Import
Vietnam Leads the World in Coffee Exports
Posted: Thursday, August 16, 2012
Russian ITAR-TASS News Agency on August 14 announced that Vietnam has become the world’s largest coffee exporter. This is the first time Vietnam surpassed Brazil to gain the title. This information is extracted from the International Coffee Organisation’s announcement. Since 1997, Vietnam was among the world’s top four coffee exporters, together with Brazil, Colombia and Mexico. Now, after 15 years, the country has reached the world’s top position. In the first six months this year, Vietnam’s coffee export value reached USD2.5 billion, a year-on-year increase of 25 percent. This figure was also 13 percent higher than that of Brazil which for decades has led the world in coffee exports.
Vietnam’s Arabica coffee is now favoured in many countries in the world, such as the US, Japan, Germany and Belgium. Vietnam only exported 24,000 tonnes of Arabica coffee in 2009, but the country shipped 50,000 tonnes of coffee overseas in 2011. Together with petroleum, rice and natural rubber, coffee is among Vietnam’s major export commodities. CPV
Seafood Export Turnover Likely to Reach US$1.84 Billion in Third Quarter
Posted: Thursday, August 16, 2012
The Vietnam Association of Seafood Exporters and Processors (VASEP) has forecast that the country’s seafood export turnover in the third quarter of 2012 will likely reach USD1.84 billion, a year-on-year increase of 7 percent, raising the figure for the first nine months this year to USD 4.7 billion . According to VASEP, a relief package of VND9 trillion approved by the Government for the tra fish sector is expected to contribute to speeding up tra fish material production activities and create conditions for local traders to purchase material. In the third quarter of 2012, tuna exports are expected to reach nearly USD175 million, cuttlefish and poulp (USD165 million), sea-crab and crustacean (USD35 million) and sea fish of all kinds (USD275 million). VASEP reported that the largest importing market of Vietnam’s seafood was the US, while other high potential markets included the Republic of Korea, Australia, Mexico, the ASEAN region and China. In the second quarter of 2012, exports of tuna and cuttlefish had positive growth of 53 percent and 40 percent, respectively. Exports of other kinds of sea fish also saw rapid growth of more than 64 percent. CPV
More Support for Exporters
Posted: Tuesday, August 14, 2012
Based on statistics from the Ministry of Industry and Trade, the export turnover during the first 7 months of 2012 is US$62.933 billion, 19 per cent higher than the same period in 2011. Products with high turnover include: clothing, phones, footwear, seafood, coffee and crude oil. In order to further support exporters, the Government has recently initiated a program to implement the Strategy for import-export of Goods from 2011-2020 and orientation to 2030. The program is designed to help businesses overcome challenges so as to expand their import-export market. According to research done by Investment and Trade Promotion Centre (IPTC) based in Ho Chi Minh City during the “Import-Export Forum: Opportunity and Prospect” recently held in the same city, at the moment there is about 30 percent of businesses encountering problems with finding new customers, sale of goods; 23 percent in urgent need of market information; 16 percent having great difficulties in locating financial capital for their operations; and 13 percent having problems with product shipment. Also according to experts, the export businesses in 2012 might not be of much concern, but the most important thing is not the total amount and the growth rate of goods being exported, but the competitiveness of local businesses and how to support the exporting businesses. According to the approved program, exporting businesses are gearing towards sustainable and relevant development model; both expanding the export scale and improving the value-added products. As such, export growth rate will be 11-12 percent on average from 2011-2020; import growth rate will be 10-11 percent on average from 2011-2020. In addition, in the near future, trade deficit will be reduced, import surplus will be around 10 percent of export turnover in 2012; moving towards balancing the trade balance in 2020 and trade surplus from 2021-2030. In order to achieve this objective, the Government needs to increase their support for exporting businesses. Apart from tax support, they need to specifically help businesses to reduce production expenses and, in particular, the required fees, especially when there are currently many types of overlapping and high fees. Government offices will continue to identify goods which have potential for export and at the same time establish mechanisms and policies to help develop goods such as: mobile phones, construction materials, petrochemical products, rubber products, and plastic substances. Regarding the clothing and footwear industries, the Government will enact mechanisms and policies to resolve challenges and develop raw and auxiliary materials supply centre for these industries. In the context where big international clothing markets are struggling all over the world, the clothing industry in Vietnam still maintains stable growth. Export turnover of clothing and thread is US$6.2 billion during the first five months of 2012, up 8 perent from the same period in 2011. Exporting clothes alone is worth US$5.46 billion, up 11 percent from the same period last year, and representing approximately 11 percent of export turnover of all industries. During the first seven months, clothing continues to take the lead with an export turnover of more than US$8.2 billion, up 21 percent from the same period last year. In order to create connections, the Government needs to have policies and mechanisms to encourage the connection among raw materials areas and production, processing and exporting through partnership, association, long-term contracts, supplying raw materials input together with product sales. Upon examining the raw material areas, provinces should encourage investment in these areas, together with production and processing on the spot to aid export. Industry associations should also encourage evaluation tasks, market and pricing forecast, periodic
market information and neighbouring countries’ policies awareness in order for members to improve their activeness and reduce risks from market fluctuation. Acting as a bridge between government agencies and businesses and a representative to protect the legal rights of members in international trade, the associations also quickly help reflect difficulties and challenges in order to proactively have countering measures to help encourage and improve export efficiency and gradually reduce the trade deficit. Regarding market expansion, programs to promote National Trade will be implemented in the last several months of the year in order to help open up markets, especially potential markets such as: Korea, Thailand, Malaysia and Australia. In addition, information supply programs will simultaneously be implemented to timely deliver exact market forecast and quickly identify changes in policies, mechanisms to manage import flow and quality or unfavourable news to exporting products in Vietnam in international markets so that problems can quickly be resolved. At the same time, we need to quickly establish and submit the Free Trade Agreement (FTA) Negotiating Strategy until 2020 to authorities to be ratified, gather a qualified team to negotiate FTA with important and potential markets; establish exporting development strategy for each market; encourage activities meant to promote export in the National Trade Promotion Program under the guidance of Decision 72/2010/QD/-TT. Most importantly, we need to improve the quality and competitiveness of Vietnam’s products in the international market and establish and expand distribution systems in other markets. Furthermore, in order to provide exporting businesses opportunities to access favourable credit policies, the Ministry of Industry and Trade will work with the Finance Ministry to effectively implement a program to encourage credit guarantee for small and medium businesses as well as fine-tune import and export duties. Besides, the two Ministries continue to work in unison to ease custom formalities in the way that best helps local businesses and boosts operating and exporting activities. Thu Ha
Enterprises
“Outstanding, Creative Labour” Movement in the Oil & Gas Sector: Generating Over US$52 Million and VND380 Billion
Posted: Tuesday, August 21, 2012
Within the past five years, the oil and gas sector has had 258 scientific research projects and more than 1,400 initiatives, in which, 739 are technical advances and inventions, generating more than US$52 million and VND380 million. Mr Nguyen Tat Hoan and a group of authors received the first prize of the creativeness contest of the oil and gas sector in 2009 - 2010
During a recent meeting with staff of Ba Ria-Vung Tau Province’s oil and gas sector, Chairman of the Vietnam Federation of Labour Dang Ngoc Tung highly appreciated the sector’s trade union. No need to hire foreign experts One of the most outstanding examples for the outstanding and creative labour movement of the oil and gas sector is Tran Nhat Huy, Director of Ca Mau Gas Company. Before taking this position, Mr Huy experienced six other positions, including technology engineer and shift manager. He also directly chairs or are authors of nearly 20 technical and management initiatives. The initiative "Building hydrocarbon dewpoint software and minimum fuel gas reduction method for Water Bath Heater at GDC" helps to save around US$100,000-150,000 annually. Despite working in the oil and gas sector for just five years, Bui Duc Viet, a technical officer from Binh Son Refining And Petrochemical Company Limited studied operation condition of CCR workshop and the formula of gas mixture to raise the efficiency of commercial gas return of Dung Quat Oil Refinery. This has helped to bring the sector around VND200 billion per year. According to Director Tran Nhat Huy, the work love, patience and responsibility are the most important factors. He said, without these, each person often easily accepts simple and normal solutions to the situation of the system but does not have requirement for improvements to enhance working efficiency. Besides, many young people in the oil and gas sector shared that they want to take initiatives to deal with the problems so that they do not need to hire foreign experts. Many outstanding labourers will help to form a solidarity team with active movements. Every year, staff and mangers of PetroVietnam has around 20 recognised initiatives, 100 initiatives and improvements applied in production activities. Over the past five years, the Initiative Council of Petrovietnam Fertilizer and Chemicals Joint Stock Company has recognised nearly 200 initiatives, contributing to increase revenues of hundreds of billions of Vietnamese dong annually. Trade unions as an important factor Initiatives and labour creativeness have helped oil and gas labourers to receive sci-technology prices both inside and outside the country, which also have the trade union’s contributions. Many units in the trade union and specialised agencies build regulations to encourage labourers to work out solutions to enhance work efficiency, in which, leaders is always an outstanding example in labour and production activities. Many initiatives are applied in production sector with far-reaching impacts. Annually, the trade union of the Vietnamese oil and gas sector closely cooperates with leaders of PetroVietnam to usually hold movements, particularly movements of key projects and works such as Dung Quat Oil Refinery, Nghi Son Oil Refinery and Thai Binh 2 Thermal Power Plant. Trade unions of different levels have paid more attention to encouraging labourers to join movements so that more than 72,000 labourers in the sector can show their love for work, including 1,300 post-graduates, 16,500 graduating from universities and colleges, more than 3,700 people graduating from vocational training universities and 13,500 manual workers. One of the lessons in successfully holding creative labour movements of the Vietnamese oil and gas sector’s trade union is defining that the movements are public characteristics. Unlike scientific research works, creative labour requires scholarly understanding which mostly originates from real demands that labourers often see during their production activities, therefore, they often easily take part in. Therefore, close cooperation between trade unions of different levels under the Party leadership are the leading factor to ensure the success of the movement
Tourism
Rocky Gardens on the Plateau Posted: Wednesday, August 22, 2012
The mighty rocky mountains and the endless stretches of fields mixing the fresh colours of corn and other crops constitute the mysterious attractive vitality of nature and culture on Dong Van Plateau. As Dong Van Plateau has high geological diversity and suffers from climate change, karst evolution process has created various "rocky gardens and forests”. The illustrations include Khau Vai (Meo Vac) rocky garden which has flower-shaped, flower bud-shaped rocky pyramid and Lung Pu (Meo Vac) garden which is characterised by dragon-roll-shaped, tiger-sit-shaped rock pyramid along with lichens and orchids, making the garden extremely attractive and impressive. Van Chai rocky garden is home to the overlapping round-shape rocks which look like a thousand black seals leaning against each other on the beach, giving the viewer a surprise. Among these, pyramid-shaped mountains following each other giving the feeling reaching the sky are the most popular, making the plateau a majestic grandeur. Cave and cavern system in Dong Van Plateau is the product of karst evolution process and has become the tourist attractions including Dragon Cave in Sang Tung (Dong Van), Kho My cave in Tung Vai (Quan Ba), and En cavern in Van Chai (Dong Van). Dong Van plateau is highly appreciated by scientists for its unique and diverse ecological system. Primary forest remains relatively intact with many kinds of timber, forest products and other valuable medicinal species such as rocky pine, chestnut, bean, cardamom and mushroom. Especially, on the rocky deserts of Dong Van plateau, there are as many as 40 orchid species. Dong Van plateau is also home to over 50 species of mammals, birds and reptiles such as chamois, langur, wild boar, civet, squirrel, and forest chicken which create the lively beauty in the plateau. Besides the value of geology, geomorphology and landscape, Dong Van Plateau also contains the traditional cultural values of ethnic minorities namely Hmong, Dao, Lot Lot, and the Pu Peo. People in Dong Van Plateau live among the rocks, moving rocks to build houses, carving rocks to find fresh water. Rocks are made into fences surrounding villages. Rock is used to retain water and soil for terraces and made into citadels to protect the country's borders. In this very place, when bending down we can see cat-ear rocks and looking up the sky, we enjoy the space covered with the gray rocks. Mixed with the gray of rocks are the green of the cornfields and the yellow of paddy fields. Corn planted on the rock, closely clinging to the rock to churn out its products. The mighty rocky mountains and the endless stretches of fields mixing the fresh colours of corn and other crops constitute the mysterious attractive vitality of nature and culture which brings tourists from far away todiscover this remote northern area. Kim Thu
10th Hoi An-Japan Cultural Exchange: New and Significant Activities
Posted: Tuesday, August 21, 2012
A Hoi An-Japan cultural exchange, the 10th such event, will be held from 24 to 26 August in the ancient town of Hoi An. This is considered a significant activity incorporated by the Ministry of Culture, Sports and Tourism into the agenda for National Tourism Year 2012, to celebrate the 39th anniversary of Vietnam - Japan diplomatic relations (1973-2012) and five years of the Vietnam – Japan friendship. Unlike the previous years, the event this year will include many special activities. The focus will be the art programme of the opening night (August 24), exchange performance night (August 25) and the closing night (August 26) which will be given special attention and large-scale investment with the participation of professional artists and actors from the two countries. At the opening Night at the Hoai River Square, there will be a concerto performance, and an Osuwa Daiko drum delegation and Hoi An drum delegation will present traditional works of the two countries. The Cultural Exchange Centre of Japan reveals that the Japanese side will contribute to this event with the participation of a children's art performance from Oda City, OMA-Chi and DJ Samurai, Wakayagi Kissyo artisan and art team from Sakai City and the Yucca singer Ami Tokito, Gypsy Queen group. The Hoi An-Japan art exchange performance night on 25 August with the participation of professional artists from both Vietnam and Japan is expected to offer viewers an impressive repertoire of cultural features from each country. Besides the cultural, art and sports activities that affirmed their value in the previous year, there will be many other unique activities such as the photo exhibition "10 years of Hoi An- Japan exchanges and cooperation, a long way", poem calligraphy, Hoi An-Japan handicrafts, the picture of Japanese overcoming earthquakes and tsunami, and Japanese artwork. Community activities include "an hour for the sake of cleaner Hoi An", launching project "vetiver boat" on Cau Bridge, minimizing waste volume under the model of Naha City in Ho Hoi An, and the ceremony of presenting the name of Princess Ngoc Hoa and planting memorial trees. International conferences will also be held, namely "How to promote central Vietnam tourism to the Japanese market", "The conservation and development of tourism in Vietnamese villages", and "How to make heritage tourism attractive." On this occasion, Hoi An city will also organize Hoi An night in support of the National Tourism Year - 2012 Tourism Heritage on the night of August 30. Besides the regular activities of the old town’s night, the program will have many special contents. The highlight of the old town’s night will be the animal release ceremony, rose night, introduction of “ancient Japan" and a seminar with the theme "Quang Nam Tourism Development in the new situation”. Animal release night will begin at 4pm with the release of 9 turtles into the Hoai River. Rose night will highlight the maternal love conveyed via songs and animation presenting the emotions and memories of Vietnamese heroic mothers. Tourists can find the Japanese imprint on the land of Hoi An to learn more about the process of acculturation between Vietnamese and Japanese. Old tombs of Japanese traders dating back over 400 years in Hoi An are a testament to the trading process and cultural exchange between Vietnamese and Japanese at the commercial port of Hoi An.
Giang Tu
Mekong Delta Attracts Nearly 13 Million Visitors
Posted: Friday, August 17, 2012
The Mekong Delta Tourism Association said the Mekong Delta region welcomed 1.8 million visitors in July, bringing the total number of tourist arrivals to 12.8 million in the year to date, up 6 percent year on year. Revenues reached VND2,600 billion in the seven-month period, up 25 percent over the same period last year. The impressive outcome was attributed to enhanced tourism quality as mentioned in the tourism development cooperation programme in the 2010 - 2015 period. Accordingly, regional provinces boosted cooperation, upgraded tourism infrastructure, encouraged all economic sectors to invest in tourism. Each province or city focuses on unrepeated tourism products to lure investors. Thanh Phu
Fairs & Exhibitions
Discovering Right Machinery and Solutions for Production Upgrade this October
Posted: Wednesday, August 22, 2012
Mr. Chainarong Limpkittisin, Managing Director, Reed Tradex Company said that during 4-6 October industrial and electronics manufacturing can be faster with high precision and cost efficiency. All manufacturers can make products with more order value with the right technologies, the right knowledge, and the right people in one place, three mega shows. METALEX Vietnam, Vietnam’s International Exhibition on Machine Tools & Metalworking Solutions for Production Upgrade is all about technologies Cutting, Drilling, Machining, Lathe, Milling, Grinding, Welding, Folding, Press Brake, Punching, Section Bending Machine. Visitors who visit will get many profits in the exhibition. They will see the right machinery & solutions for their production upgrade which faster, high precision, cost efficient. They can sell their parts to 50 Japanese buyers & manufacturers, become representative of global brands and learn new knowledge in Seminars & Technology Presentations & “Engineers Day,” “Upgrading Your Production,” “Sourcing Procedure,” “New Mechanical Engineering Knowledge for Production Line”. For NEPCON Vietnam, Vietnam’s Only Exhibition on SMT & Testing Technologies and Supporting Industries for Electronics Manufacturing is the only networking event for the community (from tier 1, PCBA, component makers, to agents, assemblers), the only center of industry knowledge, covering technology trends & sourcing procedure. Vietnamese manufacturers can source new technologies & disposable products from 200 leading brands. Specially, JETRO of HCMC will participate in 'METALEX Vietnam for the second time. Over 100 local suppliers and Japanese manufacturing firms mainly in automobile, motorcycle and electronics parts manufacturing industries will look for business opportunities at the exhibition. Up to 50 Japanese companies expect to “purchase” parts and accessories in Vietnam and 50 Vietnamese companies expect to “provide” parts and accessories. Japanese companies will exhibit parts which they want to purchase; we call this style of exhibit as “Reverse Exhibition”. The combination will create an all-under-one-roof meeting center for the manufacturing community. Buyers and sellers would meet, exchange knowledge and ideas, discover technologies, and develop business networks. So companies who expect to purchase Vietnamese parts and accessories or companies who expect to provide parts and accessories for Japanese companies, and anyone who is interested in new technologies This is a very special year for manufacturers again. The coming – together of the three important shows will both offer local parts makers a chance to meet new buyers while keeping abreast of the latest manufacturing innovations and for overseas investors to meet the right suppliers while reducing the needs to import parts.
Mr. Hiromi Goto , Assistant Manager, Sales Department of Sodick (Thailand) Co., Ltd. said that Sodick (Thailand) Co., Ltd., Japan’s leading manufacturer and provider of injection and CNC machines with branches in many countries has regarded the growth of ASEAN positively with a plan to actively promote new products and services in Vietnam and other countries in the region. “Vietnam is now the center of attention for Japanese investors due to its high potential. After having introduced our brand in Vietnam six years ago, Sodick is now looking forward to increasing our brand presence through product development and our showroom establishment here. Exhibiting at METALEX Vietnam is one of the ways in which we plan to promote our brand as well as showing off the Latest Machines with High Speed and Precision, the latest EDM Wire Cut VZ300L that would help manufacturers reduce cost with more efficiency.” Mr. Khajorn Phongnarin, Managing Director of ATOTECH Vietnam Co., Ltd said that Atotech was located in HCMC in 2004, then the 2nd ones in Hanoi in 2006, and official established as Atotech VN in 2008. As the fifth largest chemical company, Total holds leading positions in Europe and throughout the world in each of the following markets: Petrochemicals, Fertilizers, Specialty Chemicals for consumer as well as industrial markets. Being part of the chemical branch of the oil and gas group Total, Atotech has access to substantial resources and benefits from production, R&D and distribution synergies within this major company. The mission of Atotech Vietnam is to ensure that Atotech's worldwide customers will enjoy the same highest ONE ATOTECH STANDARD for their plants and operations in Vietnam. We're committed to provide the best Atotech's Products, Processes and Service to the General Metal Finishing (GMF) and Printed Circuit Board (PCB) manufacturing industries in Vietnam. The rating of these 2 sections is 60% and 40%, but we expect to balance them as 50-50 in a near future. Exhibiting at NEPCON Vietnam is one of the ways in which we plan to promote our brand as well as showing off the Latest green technology, a cornerstone of Atotech strategy to all of our customers in Vietnam to help preserving the environment while enjoying high business growth. Vietnam is now a potential and developing country. After Vietnam join the WTO end of 2006, the country has become a very attractive destination for many large companies from Japan, Korea, Taiwan etc. to set up their factories. This will bring more opportunities for Vietnam to update and improve their knowledge and technologies. Vietnamese manufacturers have the chance to export their products to other countries, in return, their competitors from other countries will also come in Vietnam, that means Vietnam manufacturers have to improve themselves, update knowledge and technologies, and improve their products’ quality. In a market that most of products have the same price, manufacturers who get the best technology and best quality will be the winner. Besides, Vietnam have the potential market. We can see the real sign is that industrial zones develop more and more in Vietnam nowadays. That means foreigner manufacturers now pay attention more in Vietnam. In the process of changing itself into a developing country, Vietnam has to balance the knowledge and skill of labor. Mr. Taveesak Srisuntisuk, Managing Director of Hexagon Metrology (Thailand) Ltd, an importer and distributor of measurement technologies from Sweden, including over 10 leading metrology brands such as DEA, Brown & Sharpe, Leitz, Leica, ROMER, and Cognitens, for the automotive
parts manufacturing and so on, revealed that, currently, the automotive parts manufacturers in Thailand pay more attention to the enhancement of production efficiency in response to growing demand for export. As a result, the metrology tools and equipment have become more necessary, particularly in the automotive industry where the production output for export has continuously increased. Therefore, the process of parts manufacturing need to have high precision. Consequently, the market’s growth rate rises 20% annually. In 2012, to continually expand Vietnamese market, Hexagon will exhibit metrology technologies at METALEX Vietnam during October 4-6, 2012 in Ho Chi Minh City. Amidst the highly competitive business environment, industrial manufacturers have to produce high-standard and high-accuracy products to serve customers’ needs. The precision measurement is essential for the manufacturing industry, and each industry needs different measurement systems such as in the automotive and electronic industries. Hence, Hexagon will bring a Coordinate Measuring Machine, ARM model, for precision measurement to exhibit at METALEX Vietnam 2012 to better serve the Vietnamese manufacturers’ requirement. “Vietnamese industry has attracted many international investors and has a high growth potential. Therefore, the Vietnamese government should promote Vietnamese industry in terms of technologies and human resources”, Mr. Taveesak said. METALEX Vietnam, Vietnam’s most comprehensive machine tools and metalworking technology exhibition, and NEPCON Vietnam, Vietnam’s only exhibition on assembly, measurement and testing technologies for electronics manufacturing will be held during 4-6 October 2012 in Ho Chi Minh City, Vietnam. For more information, visit www.metalexvietnam.com or www.nepconvietnam.com
More Development Opportunities for Vietnam Supporting Industry
Posted: Tuesday, August 14, 2012
"Promoting supplies of spare parts for Japanese manufacturers operating in Vietnam is our top priority," said Mr Hirotaka Yasuzumi, Chief Executive Officer of the Japan External Trade Organisation (JETRO) in Ho Chi Minh City at the third forum on Vietnam’s supporting industry in HCM City. This forum is part of the Metalex Vietnam and Nepcon Vietnam Exhibition 2012 scheduled to take place in the city in early October. Developing manufacturing and supporting industries to step up domestic production, create highly valued products, reduce imports and gradually make Vietnam a modern industrialised nation by 2020 is the primary direction of the Government, industries and businesses. However, our supporting industries have a lot of existing shortcomings and inadequacies. Although the Government has recently adopted many policies to develop supporting industries, businesses have not been able to access full supports as provided by those policies.
Representatives of many participating businesses expressed distresses to wait for supports or incentives from the State, particularly tax and loan, but they have not received any. Therefore, they actually hope for supports from Japan. Hirotaka Yasuzumi said Vietnamese supporting industries are faced with plenty of difficulties. Vietnamese companies now can supply just 28.7 percent of auxiliary projects for Japanese firms, much lower than other countries in Asia like China with 59.7 percent and Thailand with 53 percent. He said "In the past 10 years, JETRO has supported itemise and strengthen auxiliary industries in Vietnam through various promotion programmes. And, promoting and supporting the local supply for Japanese businesses operating in Vietnam is our top priority.” Hiroyuki Mizunoe, expert of the supporting industry development project under the Japan International Cooperation Agency (JICA), said the appeal of Vietnam to Japanese investors is weaker than other countries in the region (Thailand, Malaysia and Indonesia) because its supporting industries are too poor, weak and inclined to deteriorate this year. He analaysed that if Vietnamese small and medium enterprises (SMEs) enhance their technical capabilities plus low prices, its competitiveness will quickly increase. He added that to assist Vietnamese businesses to develop supporting industries, JICA is cooperating with the Vietnam Chamber of Commerce and Industry (VCCI) to carry out supporting industry development project. The project aims to prepare for Vietnam’s accession to ASEAN Free Trade Area in 2015 and realise the goal of becoming an industrialised country by 2020. The project will help extend the life of machines, improve product and manage quality, enhance productivity, and economise raw materials. As a result, Vietnamese firms can meet supplier requirements of large Japanese companies. All support programmes, all free, are organised in production factories of Vietnamese companies from three months to one year. To date, 29 Vietnamese enterprises have been benefited from the support project and 22 new companies are attending. Mizunoe said Vietnamese companies operating in 14 prioritised technical fields (moulding - lacing - fixture, assembly, packaging materials, plastic - rubber, equipment maintenance, engineering, forging, electrical - electronics components, heat treatment, stamping parts, compression casting, plating - painting, welding, and casting) should not hesitate to contact directly with the JICA offices in Hanoi and Ho Chi Minh City for instructions to join the project. To support Japanese manufacturers and assemblers to seek suppliers from Vietnam, JETRO and Reed Tradex Company will jointly organise the Machine Tools and Metalworking Technology Exhibition (Metalex Vietnam 2012) and the Exhibition on Assembly, Measurement and Testing Technologies for Electronics Manufacturing (Nepcon Vietnam 2012) from October 4 to 6, 2012 at the Saigon Exhibition and Convention Centre (SECC) in Ho Chi Minh City. Metalex Vietnam is expected to bring together 500 leading brands from 25 countries. Meanwhile, Nepcon Vietnam 2012 is hoped to gather 200 brands from 25 countries. Both exhibitions focus on manufacturing and supporting industries, aimed to support businesses to reach new heights. Visitors will have the opportunity to update knowledge, new technology and trends through conferences and technological presentations there. Metalex and Nepcon not only give domestic manufacturers an opportunity to meet new buyers but also access new technologies and inventions, form a exchange floor for sellers and buyers. Le Phuong
