Vietsovpetro taps 200 millionth tonne of oil

                                 

The Vietnam-Russia oil and gas joint venture (Vietsovpetro) on Aug. 8 tapped the 200 millionth tonne of oil from two oil fields of Rong (Dragon) and Bach Ho (White Tiger) off the southern province of Ba Ria-Vung Tau.

The event reflects great effort of Vietsovpetro’s staff in ensuring the safe and effective exploitation since the pumping of the first tonne of oil on June 26, 1986, affirming the traditional friendship between Vietnam andRussia . 

Since the joint venture was established in 1981, it has earned more than 60 billion USD from selling oil. 

In the past 30 years, Vietsovpetro has drilled over 1.8 million metres in 440 exploratory and operational wells, built more than 40 marine works and laid 600 km of pipes.

From the beginning of this year, the joint venture has pumped 3.68 million tonnes of oil, accounting for 60 percent of the yearly plan. Its selling revenue achieved 80 percent of the yearly plan, with a total value of 3.32 billion USD.-VNA

Competitive market for power generators

                                    


The competitive power generating market was officially launched on July 1, coinciding with a five percent increase in electricity prices.


This new market is the first step in developing Vietnam ’s electricity market and will ensure the transparency of operations and pricing, as well as attract more investment to develop new sources of power.


According to the Ministry of Industry and Trade, 29 power generating companies, with the total capacity to produce 9,000MW, have joined the competitive market by directly submitting their proposed prices to the Electric Power Trading Company (EPTC).


Of the power suppliers, 13 are hydro-electric, 11 are coal fired and five are powered by gas turbines.


There are currently 26 other power stations that take an indirect part in the market. Supplies from these plants are either controlled by the country’s Electricity Regulating Centre or their prices are set by the EPTC. Eighteen other plants will indirectly join the market for a set period of time.


In addition, 20 power plants (19 hydro-electric and one thermal) with a designed capacity of 4,567MW are scheduled to join the market as soon as they are on a commercial footing.


Currently, the Electricity of Vietnam (EVN) supplies 55 percent of the country’s electricity, the Vietnam Oil and Gas Group (PVN) contributes 11 percent and the Vietnam Coal and Mineral Industries Group (Vinacomin) provides 5 percent.


Vietnam's electricity market is expected to develop in three stages – a competitive power generating market by 2014, a competitive wholesale market between 2015-22 and a competitive retail market after 2022.-VNA

Vietnam remains world’s top pepper exporter

                                  

Vietnam exported 15,000 tonnes of pepper in May, earning over 102 million USD, bringing pepper exports in the first five months of this year to 62,000 tonnes, worth 424 million USD.

The Ministry of Industry and Trade’s Import-Export Department says that Vietnam continues to be the world’s number one pepper exporter, making up almost half of the world’s pepper exports.

The US , Germany and the United Arab Emirates are Vietnam ’s three biggest pepper importers, with a combined export revenue of more than 30 million USD. They are followed by Egypt , India , the Netherlands , Singapore and Spain .

The department added that the United Arab Emirates is an export market with a huge potential for Vietnamese businesses as the country has no tariffs or trade barriers.

It also recommended that Vietnamese pepper businesses should seek out agents and distributors in the country to make Vietnamese pepper more widely available to consumers in the country.-VNA

Vietnam, Morocco inked investment protection deal

Vietnam and Morocco signed an agreement on investment encouragement and protection in the Moroccan capital city of Rabat on June 15. 

                                    

Speaking after the signing ceremony, Vietnamese Deputy Foreign Minister Bui Thanh Son affirmed the Vietnamese Government’s determination to strengthen cooperation with Morocco and join this country’s development efforts through boosting investment in the Moroccan market. 

Moroccan Minister of Economy and Finance Nizar Baraka stressed that the agreement will help increase the flow of trade and investment between the two countries. 

He said through this agreement, the Moroccan Government wants to lure more foreign investment from Vietnam , which enjoys stable economic growths. 

The agreement will also open up opportunities for the two countries’ businesses to penetrate deeper in each other’s market, thus promoting bilateral trade, he added. 

On the same day, Deputy Minister Son met with Moroccan Minister of Foreign Affairs and Cooperation Saad Dine El Otmani to discuss measures to strengthen cooperation between the two countries, especially in economics

Price of petrol and diesel down

                              

The retail price of petrol is slashed by 800 VND (4 cents USD) to 21,900 VND (1.1 USD) per litre at 2pm on June 7 in accordance with the continuous drop in world prices, the Ministry of Finance reports. 

In addition, the price of diesel and gasoline is cut by 700 VND per litre to 20,400 VND and Mazut by 650 to 18,250 VND per kg. 

This is the third petrol price reduction of the year after prices were raised twice in March and April at a total of up to 3,000 VND (14 cents USD) per litre. The first and second petrol price reduction came to 500 VND and 600 VND in May. 

The ministry said the reduction aims to ensure the rights and interests of consumers, the State and enterprises. On June 4, the import price of A92 petrol is cut to 104.91 USD per tank, a reduction of 22-24 USD compared with one month ago, while gasoline fell by 109.91 USD per tank. Prices were reported to have fallen since the end of May. 

The import tax on petrol has been increased by 4 percent, diesel by 3 percent, while gasoline and mazut by 5 percent. The ministry said the continuous reduction of the world petrol price is a favourable condition to recover import tax while lovering domestic retail prices. 

The ministry proposed to offer 300 VND per litre in support from the Price Stabilisation Fund.

Steel industry sees low May consumption

The steel industry has seen a strong decrease in production and consumption in May against April, the Ministry of Industry and Trade reports. 

                                 

Specifically, the production volume of construction steel in May alone reached 410,000 tones, a reduction of 50,000 tonnes against April. 

In the first five months this year, steel production reached nearly 2 million tonnes or a decrease of 198,000 tonnes over the same period last year. Also in May, stockpiled volumes stood at 320,000 tonnes, or up 65,000 tonnes against April. 

Steel consumption is estimated to have reached 370,000 tonnes last month or a decrease of 73,000 tonnes against the previous month. 

The ministry reports that steel production companies have to moderate their production to minimise stockpiled steel volumes. It said the import of steel ingots also dropped due to stockpiled volumes. 

In the first five months, the import of pig iron is estimated to have hit 168,000 tonnes worth 108 million USD, a 67 percent decrease in volume and 67 percent in value over the same period last year. 

Due to sluggish steel consumption, local steel manufacturers have had to slash their selling price between 100,000 to 150,000 VND per tonne, attributed to a finance shortage amongst property developers. 

It is predicted that in the next months, steel prices will not increase much. However, steel consumption may see positive results thanks to further interest rate cuts and a 29 trillion VND (1.3 billion USD) finance package aimed to reschedule business tax. 

A representative of a steel company said the most difficult thing facing the steel industry is low consumption and not the rising and declining price of raw material. However, the real estate sector is always a key consumption partner of the steel industry that has been given easier loan access thanks to the Government's loosened credit policy, which has had little impact. 

Nguyen Tien Nghi, vice chairman of the Vietnam Steel Association, said in the time to come the steel industry will continue facing negative effects of the global downturn and weak local economy. 

The local steel industry will continue to see difficulties as Government resolution 11, aimed to curb inflation and stabilise the marco-economy, remains effective. 

The association is determined to minimise production costs to create competitiveness and will offer reasonable prices and spur exports in order to reduce pressure on local consumption, Nghi said. 

According to the steel association, to enhance local steel consumption, an increase in public spending is the most important issue to be addressed by steel producers. By doing so, they may have an opportunity to sell their unsold steel to get back investment capital and pay off debts. -VNA

Gadgets showcase for Euro 2012

Many electronics stores in Ho Chi Minh City have launched promotions, especially for television sets, ahead of the 2012 European Football Championships. 

                                     

Nguyen Kim, one of the largest, is offering discounts of 5-20 percent on many "super thin" TVs, and gifts like disk players, ovens and electric irons for buying LCD (liquid crystal display) TVs. 

It is also offering a 45-day, refund trial of two Samsung LED models for people not living in Hanoi or HCM City . 

Five customers taking part in a programme to predict the winner of Euro 2012 and the score in the final stand will win a BMW X1 sDrive car. 

Other electronics supermarkets like Cho Lon, Phan Khang and Dienmay.com are offering discounts of at least 10 percent on TVs and other products for Euro 2012. 

Cho Lon has announced a 15 percent discount for customers using Vietinbank cards to buy a Samsung LED or LCD TV of 40 inches and larger. 

It has also slashed the prices many other electronic products by up to 50 percent. 

Thien Hoa Electronics and Furniture Shopping Centre is offering free lease of LCD TVs to people in HCM City and Binh Duong Province during Euro 2012. 

Customers' deposits – equal to the value of the TV they want to lease – will be refunded when they return it. 

The number of customers had shot up in recent days, Bui Tan Cuong, marketing director of Thien Hoa, said, adding that sales of TVs, especially of the LED and LCD varieties, went up by 30 percent last month compared to May 2011. 

Dinh Anh Huan, general director of Dienmay.com supermarkets, said sales were up by more than 30 percent. 

Euro 2012 will be co-hosted by Poland and Ukraine from June 8 to July 1.-VNA

Shrimps: A key export for Vietnam

                                        

The turnover from Vietnamese fisheries exports in May hit 500 million USD, raising the sector’s total export revenue for the first five months of this year to 2.3 billion USD, up by 9.8 percent over the same period last year. 

The key products are still shrimp, fish and shellfish. 

Japan remains the largest market for Vietnamese shrimp, making up 26.9 percent of the country’s total shrimp export revenue, followed by the US which imported 150 million USD worth of shrimp, a four percent year-on-year increase. 

Asia proved to be a promising market for Vietnamese shrimp, while the Australian market saw an impressive rise of 70 percent in shrimp imports, passing Canada and has become Vietnam’s 6 th largest shrimp market. 

Meanwhile, several experts pointed out that there are still no positive signals coming from the EU market due to impacts of public debt and the recession in Europe , compounded by tariff barriers. A significant drop could be seen in all three of Vietnam ’s main EU markets, namely Germany , the UK and France . 

Nguyen Thi Thu Sac, Vice President of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that few of its members can meet the high standards demanded by the EU on imported shrimp. 

After falling in price for quite a while, the cost of prawns for processing has now recovered to reach from between 140.000 VND to 195.000 VND per kilo, an increase of 3.000 VND to 5.000 VND per kilo over last week.-VNA

Vietnamese businesses win European award

The three Vietnamese businesses that received the International European Award for Quality from the Global Trade Leaders’ Club were honoured at a ceremony in Madrid, Spain, on May 28. 

                                    

The businesses are the International Dairy Products JSC, the Vietnam Plant Oil and Food Processing Company and the Chupah Rubber Company. 

When speaking at the ceremony, Ricardo Roso Lopez, the club’s General Secretary and Managing Director, praised the Vietnamese products that are currently available in the European and world markets. 

He said he hoped that even more Vietnamese businesses will receive the award in the future. 

Along with the Vietnamese businesses, 30 others from countries across the world including Brazil , Nigeria , Malaysia , Mozambique and Angola also received the award. 

The annual award is voted for by the club’s members to recognise businesses that produce good quality products that are popular with consumers. 

Since its inception in 1978, the club has organised various business forums and seminars on trade promotion to help its members seek out new partners and opportunities.-VNA

CPA to assist auditing/accounting services in VN

The Association of Certified Practicing Accountants of Australia (CPA Australia) will provide the necessary technical support and know-how to help Vietnam draw up a legal framework for auditing and accounting services in the country that conforms to international practices. 

                                             

An agreement to this effect was signed in Hanoi on May 25 by the Vietnamese Ministry of Finance (MoF) and CPA Australia and many of MoF’s employees will receive scholarships to study in Australia as part of the agreement. 

Vietnam ’s taxation system will be included in CPA’s training programme and the country will also make it easier for CPA Australia members to be awarded auditing certificates, valid for working in Vietnam . 

Speaking at the signing ceremony, Deputy Finance Minister Truong Chi Trung said the agreement will assist the development of auditing and accounting services in Vietnam and help MoF to realise its strategy to develop its human resources. 

The CPA Australia’s General Director Alex Malley said that Vietnam ’s growth rate and its integration into the global economy have increased the demand for professional auditors and accountants who are able to work in a dynamic and global environment. 

Having experience in consultancy, legal affairs, auditing and accounting, CPA Australia is ready and able to assist Vietnam , he said. 

The CPA is a 126 year old global professional accounting body with 139,000 members from 114 countries and territories across the world and established representative offices in Hanoi and Ho Chi Minh City in 2008.-VNA

Hanoi’s CPI increases by 0.16 percent in May

Hanoi ’s consumer price index (CPI) in May rose 0.16 percent against the previous month, a year-on-year increase of 7.8 percent. 

                        

Except for post and telecom services, other commodity groups saw sharp changes. Prices in the restaurant and restaurant services group and housing, electricity, water, fuel and construction material group decreased by 0.24 and 1.03 percent respectively. 

The goods and other services group took the lead with a 2.75 percent increase, followed by the transportation group with 1.32 percent. Prices in the remaining groups saw increases below 1 percent. 

According to economic experts, the CPI rise was due to increases in prices of the goods and other services group, and the price hike of petrol from April 20 which led to a 1.32 percent rise in transportation group. 

They said the reason behind the increase in prices of other goods and services was the adjustment of the minimum salary, while the long holidays in late April and early May also led to the increase in prices of culture, entertainment and travel services. 

Experts also said that an abundant supply of rice and vegetables led to decrease in prices of restaurant and restaurant services. 

Although the price for pure gold decreased 1.76 percent in comparison with April, it rose 11.82 percent over the same period last year. 

Meanwhile, the price of the US dollar remained unchanged, but was up 0.62 percent against the same period of 2011.-VNA

WB: Vietnam’s economy becomes more stable

Vietnam ’s economy is gradually entering a more stable macroeconomic environment after a prolonged period of heightened turbulence, said a World Bank report. 

                                           

At a press conference to announce the World Bank’s East Asia-Pacific Economic Update 2012 in Hanoi on May 23, the chief economic expert of the WB in Vietnam, Deepak Mishra said while Vietnam’s economy has started to stabilise, the significant tightening of macroeconomic policies, along with an uncertain global economic environment, are beginning to take a toll on economic growth. 

The country’s real GDP growth decelerated from 6.8 percent in 2010 to 5.9 percent in 2011 and further to 4.0 percent in the first quarter of 2012, he said. 

According to the report, tighter domestic policies in 2011 have dampened investment, particularly in infrastructure and real estate, and private consumption. Thanks to a combination of these measures and falling food prices, inflation declined to 10.5 percent year-on-year in April, 2012 from a peak of 23 percent in August, 2011. 

Maintaining macroeconomic stability remains the Vietnamese Government’s priority. The country’s economic growth is expected to be around 5.7 percent, and year-end inflation is forecast to decline to below 10 percent in 2012. 

In a move to shore up the economy, the State Bank of Vietnam reduced policy interest rates by 200 basis points in March and April from 15 to 13 percent, and announced further reductions of at least 100 basis points every quarter during 2012, the report said. 

Cooling demand and slow credit growth should dampen the inflationary impact of the rate cuts, which at the same time should help ease financing costs for the private sector. 

The report also said that Vietnam ’s public debt is likely to remain sustainable if economic recovery continues and authorities remain on the current path of fiscal consolidation. 

Deepak Mishra pointed out that Vietnam ’s near-term policy challenge is to maintain macroeconomic stability and restore confidence among investors, while addressing longer-term structural reforms. 

He noted that the Government is stepping up efforts to restructure small and medium-sized enterprises (SME), public investment management and the financial sector. 

A number of key regulations, including those involving medium-term investment planning, management and supervision of State capital investment in SOE, and performance monitoring of SOE are likely to be enacted during 2012. 

Even if only a subset of the announced structural reforms is implemented steadfastly, Vietnam should return to a more sustainable macroeconomic environment while laying the foundations for greater efficiency and productivity to drive medium and long-term growth, he said. 

The WB report also indicated that growth remains strong in developing East Asia and Pacific, recording 8.2 percent in 2011, although it has slowed from its post-crisis peaks. 

In 2012, East Asia will remain the strongest performing region, even though its annual growth will further moderate as a result of a continued weak external environment. 

The region is projected to grow by 7.6 percent this year, with slower expansion in China pulling down much of the regional aggregate.-VNA

Hanoi’s CPI increases by 0.16 percent in May

                          

Hanoi ’s consumer price index (CPI) in May rose 0.16 percent against the previous month, a year-on-year increase of 7.8 percent. 

Except for post and telecom services, other commodity groups saw sharp changes. Prices in the restaurant and restaurant services group and housing, electricity, water, fuel and construction material group decreased by 0.24 and 1.03 percent respectively. 

The goods and other services group took the lead with a 2.75 percent increase, followed by the transportation group with 1.32 percent. Prices in the remaining groups saw increases below 1 percent. 

According to economic experts, the CPI rise was due to increases in prices of the goods and other services group, and the price hike of petrol from April 20 which led to a 1.32 percent rise in transportation group. 

They said the reason behind the increase in prices of other goods and services was the adjustment of the minimum salary, while the long holidays in late April and early May also led to the increase in prices of culture, entertainment and travel services. 

Experts also said that an abundant supply of rice and vegetables led to decrease in prices of restaurant and restaurant services. 

Although the price for pure gold decreased 1.76 percent in comparison with April, it rose 11.82 percent over the same period last year. 

Meanwhile, the price of the US dollar remained unchanged, but was up 0.62 percent against the same period of 2011.-VNA

European businesses in VN ‘still wary'

Business confidence and outlook among European businesses in Vietnam has remained consistently near "neutral" for the third straight quarter, a quarterly survey by EuroCham shows. 

                              

The EuroCham Business Climate Index for April/May 2012 released on May 19 fell by three points to 53. 

European businesses that took part in the survey continued to be cautious about their business outlook and in assessing their current situation as well as the overall economic outlook in Vietnam . 

Of them, 44 percent are in the services industry, 28 percent in manufacturing, 20 percent in trading, and the rest in others. 

There was a 10 percentage point increase to 29 percent in respondents assessing their current business situation as "not good". It had been only 12 percent a year ago. 

The percentage of companies describing their current business situation as "good" was 34 percent, unchanged from the last survey but down from 50 percent a year ago. 

No respondents described the current situation as "excellent". 

Asked about their expected number of orders and revenues in the medium term, the answers were mixed – 58 percent expected an increase in revenues, a solid increase from last quarter when it was 47 percent. 

The number of businesses expecting revenues to fall remained unchanged at 22 percent. Only 18 percent expected revenues to remain constant, down from 27 percent. 

Overall, this represents an upward trend in the outlook on orders and revenues. 

But it has yet to have an effect on recruitment plans with 46 percent of companies wanting to maintain their current level of staff. 

Only a third wanted to increase their staff, a 7 percent fall from last quarter, while 19 percent were planning to lay off employees, up from 14 percent last quarter. 

The signs of optimism in business outlook seen in the last survey remained largely unchanged, with 38 percent saying "good" and 36 percent remaining "neutral". 

This was almost unchanged from the last quarter, but is put into perspective by the 51 percent of respondents who had a positive outlook this time last year. 

Twenty-six percent had a pessimistic outlook. 

The results are still not decidedly positive and little is seen in the form of recovery of business outlook. It is worrying that 62 percent assessed their outlook as either "neutral" or negative. 

When asked about their investment plans for 2012, many respondents continued to be cautious: 34 percent wanted to maintain their level of investments and 38 percent were looking to increase them. 

In the last survey only 36 percent had wanted to increase their investments, but the number had been 59 percent last year. 

This shows a continuation of the trend that businesses are getting more cautious about investing. 

From 24 percent last quarter, the proportion of businesses looking to reduce their overall investment in the country rose to 28 percent. 

Though majority of companies are looking to maintain or increase their investments in the country, it is worrying that nearly a third of companies are considering a reduction. 

The estimate for the expected depreciation in the dong was 5.63 percent, down from 8.33 percent last quarter, hinting at confidence in the Government's measures to curb inflation. 

But 57 percent still saw inflation as a major concern or even threat to their business operations in Vietnam , slightly less than the 61 percent last time. 

When asked about the difficult economic situation in Vietnam , 45 percent expected "stabilisation and improvement" of the current situation (up 10 percent from last quarter). 

Though it points towards an increase in confidence, 55 percent of respondents still expected the overall economic situation to deteriorate further. 

Following the recent completion of the scoping exercise and impending start of formal negotiations for a EU-Vietnam free trade agreement, respondents were asked what this will mean for their business. 

A majority (51 percent) expected a positive impact on their business, 29 percent saw no impact, and 16 percent were unsure what an FTA will mean for them. 

Though pointing towards a positive sentiment, it also underlined the need to clarify what exactly a free trade agreement will include and how it will impact European businesses in Vietnam . 

When asked what parts of a free trade agreement will be most important for their business, the two most common answers were "elimination of import tariffs" (56 percent) and "enhancing trade in services" (51 percent). 

This was followed by "tackling non-tariff barriers (34 percent) " and reaching "agreement on intellectual-property rights" (27 percent). 

EuroCham chairman Preben Hjortlund said: "The continuing low level of the EuroCham Business Climate Index at 53 points shows ongoing concerns and uncertainty in the business community and amongst investors. 

"While there are some encouraging signs, the overall business sentiment is stagnating at a relatively low level." 

His business grouping's executive director Paul Jewell said: "The continuing low level of EuroCham's [index] can be explained by slow progress on many of the issues that were addressed in our Whitebook, coupled with some new issues that are eroding confidence in the business environment in Vietnam: Macroeconomic uncertainties, high rates of inflation, corruption and administrative burdens continue. 

"European investors are increasingly looking for alternative investment destinations in ASEAN. Therefore Vietnam has to increase its efforts to remain competitive in the region. 

"Tangible progress towards an EU-Vietnam free trade agreement will be a step in the right direction and help restore investor confidence.".-VNA

Over 8,000 city firms halt operation

HCMC – Around 8,290 city enterprises have suspended operations or pulled out of the market this year, said Nguyen Trong Hanh, deputy director of HCMC’s Department of Taxation.

                          

With business households included, the number of inactive businesses is 38,200. The number of suspended and dissolved enterprises, albeit lower than that of newly-established firms, is higher than the average level of recent years, Hanh said.

Such a situation, along with rising inventories and lower corporate tax collection, shows that the efficiency of production and business activities is getting worse.

According to statistics of HCMC tax authority, the number of corporate taxpayers with positive profits has been falling over the past years. In 2009, 40.43% of city-based firms declared profits and made reports on corporate tax payment.

The figure dropped to 38.37% in 2010 and 35.04% in 2011. In the first quarter of 2012, only 25.42% of city firms reported profits.

Troubled businesses have also left an impact on tax revenue. In the first four months the total tax collection reached 35.46% of the year’s estimate, equivalent to the same period last year.

The same revenue year-on-year equals a decline, Hanh stressed.

Tax collection from production and trading businesses met 30.8% of the estimate, rising by a mere 2% year-on-year. Revenue gained from the State economic sector decreased sharply, while the foreign-invested sector grew.

Revenue from land rents and car registration fees also dropped significantly against previous years.

The Jan-Apr tax revenue saw the contribution of enterprises who enjoyed a tax payment extension in 2011 and foreign-invested companies that began to claim profits after frequent inspections and constant warnings against transfer pricing.

Next week, HCMC’s Department of Taxation will organize a week of dialogue with taxpayers to listen to opinions on tax policy implementation, administrative procedures, and behavior of State officers.

During the event, the municipal tax department will hold direct talks with enterprises on the department’s website at www.hcmtax.gov.vn.

Viettel expands its operations in Mozambique

Vietnam ’s military-run telecoms group, Viettel, officially opened a branch in the Mozambican capital of Maputo on May 15. 

                            

After a one year trial, the group now has the largest telecoms network in Mozambique , called Movitel. 

Movitel has the most extensive coverage in Mozambique , with 1,800 2G and 3G transceiver stations, which cover 100 percent of the East African country. 

Movitel has also installed more than 50 percent of Mozambique ’s mobile phone infrastructure and 70 percent of the country’s optic fibre cable network, almost 12,600 km. 

It is also the largest distributor, operating 50 shops and supplying 25,000 dealers across the country. 

Speaking at the inauguration ceremony, Mozambican President Armado Emilio Guebuza lauded Movitel for its contribution to the country’s communications network. Mozambique now has one of the most modern telecoms infrastructure in Africa . 

Mozambique now has the third largest optic fibre cable network in Africa, after South Africa and Nigeria , said the Mozambican Minister of Transport and Communications, Jaquenly Michael. 

The country is Viettel’s fifth overseas market and is its first in Africa , which still holds a lot more potential. 

In 2011, the group earned nearly 6 billion USD. With 60 million subscribers worldwide and is one of the 15 largest companies globally in terms of the number of subscribers.-VNA

Mobile phone, accessory exports hit new highs

Exports of mobile phones and spare-parts topped 3 billion USD in the first four months, a 161.5 percent increase year-on-year to place the industry second after garments and textiles in Vietnam's top 10 in export value. 

                               

Customs statistics show that mobile phone and spare-parts exports previously reached 300-400 million USD a month but since July last year they have risen strongly to 1.3 billion USD a month and have held second spot in export value since last September. 

Exports of computers, electronics items and spare parts stood at 1.8 billion USD from January 1 to April 15, an increase of 79.2 percent over the same period last year. 

This record was attributed to the exports of the giant Samsung's Vietnam division which last year accounted for more than 70 percent of mobile phone exports, worth 6 billion USD, and this year reached about 1 billion USD a month. With such export growth, Samsung Vietnam 's export value can reach between 11-12 billion USD this year, said deputy minister of Industry and Trade Nguyen Thanh Bien. 

Meanwhile, exports from domestic businesses remained modest. They were mainly hired to assemble for foreign partners from Japan , the Republic of Korea , Singapore , Malaysia , Taiwan and other ASEAN countries. 

Son said the number of Vietnamese electronics businesses was large but they had failed to compete with foreign partners due to limited finance and technology. Foreign companies held 80 percent of the local electronics market share and made up 95 percent of the export value. 

Most Vietnamese enterprises were involved in buying parts and assembling products, such as televisions, karaoke equipment and refrigerators, for local consumption. In the domestic market however, locally made products were mainly consumed in remote areas because they failed to compete with products of foreign firms in cities. 

In addition, local firms in the electronics industry were shifting to develop LED, solar or wind power products while seeking new business opportunities. 

The Government has planned to manufacture heathcare equipment and specialised electronic products that will generate opportunities for a number of companies in this area. 

Vietnam now has nearly 500 (local and foreign) enterprises operating in the electronics industry. 

Last month, Nokia began construction of a plant in Bac Ninh province to cost 200 million EUR (264 million USD).-VNA

Malaysia helps develop VN wind energy sector

Timar Wind Solar Energy Malaysia and Ninh Thuan provincial People’s Committee signed a memorandum of understanding (MoU) on investment cooperation in the central province on May 14.

                          

Under the MoU, Timar will invest in development of new technology in the renewable energy sector in Ninh Thuan, with a total capital of 800 million USD. It is expected to finish all procedures and start work in 2012.

The Malaysian business will build factories to manufacture spare parts for the wind energy sector, supporting the province in providing lighting on major streets as well as building other works in the province.

The business also pledged to provide capital and technology if other wind energy projects in Ninh Thuan can be run on a cooperative basis with Timar.

Chairman of the provincial People’s Committee Nguyen Duc Thanh said the province will support the plans of Timar, creating favourable conditions for Timar to complete all legal procedures relating to investment, to promptly implement the project.-VNA

Supporting industry expo to join Metalex, Nepcon 2012

HCMC – The HCMC supporting industries expo will be organized under the same roof with two other expos Metalex Vietnam and Nepcon Vietnam in October, organizers announced after cutting a deal to this effect on Thursday.

HCMC Investment and Trade Promotion Center (ITPC) and the Japan External Trade Organization (JETRO) as the co-organizers of the supporting industries expo clinched the deal on Thursday with Reed Tradex as organizer of the other two events.

                                          

The supporting industries expo will be held alongside with the international machine tools and metalworking technology exhibition known as Metalex Vietnam, and the international electronics manufacturing technology exhibition (Nepcon Vietnam) in HCMC.

Yoshida Sakae, managing director of JETRO in HCMC, said that over 100 local suppliers and Japanese manufacturing firms mainly in automobile, motorcycle and electronics parts manufacturing industries would look for business opportunities at the exhibition.

He said that the incorporation of the three shows would 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.

Nguyen Thanh Xuan, vice director of ITPC, said that the supporting industries exhibition was aimed at helping raise Vietnamese content in manufactured products.

All the cost of the exhibition will be paid by the national budget of the Japanese government.

Meanwhile, Chainarong Limpkittisin, managing director of Reed Tradex, said that Metalex Vietnam and Nepcon Vietnam 2012 would feature over 700 global brands from 25 countries and territories. The exhibitors will showcase the latest equipment and technology at the Saigon Exhibition and Convention Center in District 7.

Metalex and Nepcon will showcase machinery and equipment in the categories of machine tools, welding technology, factory automation, pumps and valves, material handling, molds and dyes and control measurement among others.

Gov't issues resolution to help struggling firms

Prime Minister Nguyen Tan Dung has signed a new resolution aiming to help ease the pressure on struggling businesses through policies such as extending payment deadlines on VAT and income tax, and making it easier for businesses to access loans. 

                                   

A six-month extension for VAT payment for this year's second quarter has been granted to small and medium businesses (excluding lottery, stock, financial, banking, insurance, businesses and firms under major corporations), and businesses that use high numbers of labourers in production and processing of agriculture, aquaculture, textiles, footwear, infrastructure and electrical equipment. 

In addition, the Government has also agreed a nine-month extension for business income tax backdated to 2011 for firms classified in the above two categories and those involved in mechanics, waterway transportation, steel and cement production. 

The resolution also calls on the State Bank of Vietnam to implement resolutions for restructuring debts and other necessary steps to support businesses struggling to access loans. 

The Government has also decided to reduce land rental payments in 2012 by 50 percent for businesses in commerce and services, and allow a 12-month extension for investors of projects that are in financial difficulties. 

According to the resolution, the Ministry of Finance would also request the National Assembly to consider exempting individuals and households that provided housing and meals for workers, students and labourers, in addition to childcare facilities, from VAT, personal and business taxes in 2012. 

The resolution also sets out appropriate solutions to increase the rate of reimbursement of FDI and ODA, and mobilise 2,000 billion VND (95 million USD) in additional funds to upgrade canals and improve rural roads, as well as other infrastructure projects that would boost agricultural production, aquaculture and the development of trade villages. 

According to statistics from the Ministry of Planning and Investment, by April 20, at least 82,000 businesses had reportedly dissolved, 16,000 others had to halt operations.-VNA