Crackdown on fertiliser traders

Fertiliser producers and traders have to meet more requirements to be eligible to stay in business.

This is part of a new decree on managing the fertiliser market drafted by the Ministry of Industry and Trade. It is scheduled to be submitted to the Government next month for approval.

Accordingly, fertiliser producers will have to meet requirements covering locations, workshop area, equipment, technology, and laboratory areas.

Managers at fertiliser producing units must have completed at least tertiary level in chemistry or agriculture.

Fertiliser traders will also be required to use proper facilities. And business owners and sellers will need to undergo training course in these subjects.

"The proposal is expected to reject producers with poor quality products," said Nguyen Thi Kim Lien, vice head of the ministry’s Chemistry Department at a workshop on fertiliser market management on Monday.

Lien said that the production of fake or low quality fertiliser was at alarming levels, mostly because everyone could make and sell fertiliser.

Poor quality fertiliser with less than 20 per cent of the required nutrition were found more and more in the market. They caused huge damage to crops and thus a loss to farmers, she said.

At present, the cost of fertiliser and plant protection chemicals account for half of rice production costs. According to statistics, there are more than 500 fertiliser producers and about 30,000 fertiliser traders across the country.

About 5,000 types of fertiliser are allowed to be made, traded and used on domestic market. Now, authorities are refining the list to manage the market.

An official from the department, Truong Hop Tac, said that lack of staff, facilities and overlapping management among agencies resulted in poor management.

Lien agreed with Tac that the Ministry of Industry and Trade should be responsible for managing non-organic fertliser while the Ministry of Agriculture and Rural Development should be responsible for managing organic fertiliser and others.

Vice head of the Market Watch Department Do Thanh Lam said that higher fines for violators were also needed. In the first quarter of this year, the department examined 215 cases, cracked down on 82 violators, collected fines worth VND2.47 billion (US$117,600) and destroyed substandard goods worth VND253.2 million ($12,000).

Japan’s intelligent transport technology considered

Hanoi hosted an international seminar on June 4 discussing the potential for applying the Japanese intelligent transport technology to Vietnam’s transport management.

Deputy Minister of Science and Technology Tran Viet Thanh said improving the road transport network’s operation and safety is a pressing issue, noting that poor infrastructure and vehicle variety make controlling Vietnam’s road network extremely challenging.

He said intelligent transport technologies have minimised costs and maximised efficiency and effectiveness in countries worldwide. The government and its relevant ministries and agencies have conducted initial research into introducing the technologies capable of meeting Vietnam’s unique needs.

Delegates also looked at data analyses relating to Sumitomo Electric Group’s intelligent transport technology, the reality of transport in Vietnam’s urban areas, and the viability of implementing a national intelligent transport system.

At the event, the National Centre for Technological Progress (Nacentech) and Sumitomo Electric Group signed a memorandum of understanding on expanding science and technology cooperation.

Banks offer US$1.4 bln housing loans

Five commercial banks are offering loans worth VND30 trillion (US$1.4 billion) to home buyers and realty developers from June 1, in an effort to shore up the property market.

The banks entrusted by the State Bank of Vietnam (SBV) to join the lending programme include the Vietnam Bank for Agriculture and Rural Development (Agribank), the Vietnam Bank for Industry & Trade (Vietinbank), the Vietnam Bank for Foreign Trade (Vietcombank), the Bank for Investment and Development of Vietnam (BIDV) and the Mekong Housing Bank (MHB).

The banks offer an annual preferential lending rate of 6 percent for this year, which will then be revised by the SBV in the following year in December, at a rate that is required to be below 6 percent per annum.

The move came on the heels of the Government’s Resolution on bailout for home purchases, which is expected to make it easier for borrowers to buy or rent low cost houses.

Accordingly, the BIDV has registered to lay out a VND10 trillion (US$400 million) credit package. It also pledged to process lending applications for individuals and businesses within 4 and 20 working days, respectively.

Those eligible can borrow up to 80 percent of the houses’ value and put up the purchased houses as collateral for the bank loans that can enjoy a term of 15 years.

In early June, construction on five low cost apartment buildings started, notably the Tay Nam Linh Dam social housing project in Hanoi with over 1,000 apartments. Various commercial homes are also being converted into social dwellings.

Seminar discusses intellectual property

Intellectual property, competition and the right to intellectual property are the main topics of a seminar in Hanoi on June 4.

The event, jointly held by the Vietnamese Ministry of Science and Technology and the World Intellectual Property Organisation (WIPO), drew the participation of nearly 100 managers and experts from the WIPO, Laos, Cambodia, the US, Japan and Vietnam.

Deputy Minister of Science and Technology Tran Van Tung underlined the important role intellectual property plays in social development as well as the performance of businesses.

He spoke of the fierce competition between enterprises and increasing intellectual property violations globally.

Pointing to overlaps in legal documents and authorities in dealing with issues regarding intellectual property in Vietnam, the delegates agreed that the problem can be addressed only when competent agencies coordinate with each other under a common mechanism.

They also raised the sparse content of legal documents on competition in Vietnam.

Sharing experiences in competition and the exercise of rights to intellectual property, the experts stressed the need for countries to increase policy dialogue at an international level and partner with the WIPO and other international organisations in the field.

At the same time, the countries should bring into full play measures and policies stipulating intellectual property rights, calculating economic-social matters and each country’s development orientations, they said.

Seminar calls for renewable energy development aid

A senior Vietnamese trade official has called for greater flows of capital into the developing economies of APEC including Vietnam to develop renewable energy.

Luong Hoang Thai, Head of the Multilateral Trade Policies Department of the Ministry of Industry and Trade, stated his view at a seminar in Hanoi on June 4.

The event saw the participation of financial and banking experts, policymakers and entrepreneurs from Asia-Pacific Economic Cooperation member economies as well as scholars from the Organisation for Economic Cooperation and Development and the United Nations Environment Programme.

He pointed to the fact that the renewable energy sector, which is relatively new to third world countries, including Vietnam, makes up a modest proportion of total energy supply compared to the 15 percent in developed nations.

Meanwhile, the majority of the least economically developed nations fall short of capital resources to build infrastructure, severing the development of renewable energy, he said.

This will push the underdeveloped countries behind their developed counterparts, he added.

At the seminar, other discussions touched upon APEC-related regulations for the development of renewable energy projects, including its open and transparent investment mechanisms for the development of a free and open energy market.

Participants presented their candid opinions and shared experiences in luring funds for such projects, and put forth their suggestions to handle the matter more effectively.

Investors shift focus to high-dividend stocks

Investors are being encouraged to put money into stocks with high dividend yields, creating a new investment trend.

Viet Nam’s stock market is becoming more attractive to cash holders, including risk-averse investors, especially in the context that deposit interest rates at many banks have fallen to just 6-8 per cent per year.

Prices of shares which promise high dividends have risen significantly.

PetroVietnam General Services Corp (PET) has gained around 30 per cent since the beginning of this month, from VND17,000 (US$0.81) a share to VND22,000 ($1.05). According to analysts, one of the most important reason for the rise is the company promises to pay 15-18 per cent dividend.

Price of shares of Khanh Hoa Power Co (KHP) also jumped 20 per cent in one month, from VND10,000 a share to VND12,000. KPH has paid a dividend over 10 per cent in recent years.

Small stocks such as telecom equipment manufacturer Sacom Development and Investment (SAM), Hoang Quan Consulting Trading Service Real Estate Co (HQC) or Viet Nam Japan Medical Instrument Co (JVC) also promise investors high dividends if these companies accomplish their profit targets.

According to analysts of HCM City Securities Co, investment in the stocks with high dividend yields also brings about risks, particularly when the market sinks in a long downtrend.

Prices of shares will be adjusted down corresponding to the number of dividends issued while a downward trend will push share prices down further, which will adversely affect investors’ investment profits.

Risk averse investors therefore usually invested in high-dividend stocks in the short term and they sold those shares as soon as share prices reach their expectations, analysts said.

However, there are many high-dividend shares with good liquidity and stable growth such as Phu My Fertiliser (DPM), Sucrerie De Bourbon Tay Ninh (SBT) or seafood processor Hung Vuong Corp (HVG).

Companies promising high dividends often have good earnings and stable growth. High dividends reflect the health of businesses, not just an information to support stock prices.

Steelmakers call for action on anti-dumping

Two local steelmakers have filed a petition with the Viet Nam Competition Authority (VCA) under the Ministry of Industry and Trade (MoIT) saying imported cold-rolled stainless steel is being dumped on the local market.

The petition by Posco VST Co Ltd and Hoa Binh Inox Joint Stock Company called for anti-dumping measures against cold-rolled stainless steel imports from mainland China, Taiwan, Malaysia and Indonesia .

According to Article 10.4 of Ordinance 20/2004/PL-UBTVQH11 on anti-dumping of goods into Viet Nam, MoIT must issue a decision within 60 days on whether to initiate an investigation.

This is the third time local producers have filed a petition against imported products. The two previous cases were brought against float glass and vegetable oil imports.

Most stainless steel items enjoy a zero import tariff, except stainless steel with a circular cross-section, which is subject to a 10 per cent duty, according to Circular 193/2012/TT-BTC dated November 15, 2012, issued by the Ministry of Finance.

In October last year, the finance ministry brought forward the amended version of Circular 157/2011/TT-BTC dated November 14, 2011, raising the duty on cold-rolled stainless steel imports to 7 per cent from the previous 5 per cent.

Such an adjustment was made after Posco VST, the largest cold-rolled stainless steel producer in Viet Nam, complained about poor sales.

European firms gain confidence in market

Business confidence among European companies in Viet Nam continues to improve, according to Eurocham’s 11th quarterly EuroCham Business Climate Index (BCI) survey released yesterday.

The Business Climate Index conducted in May rose to the midpoint, from 48 to 50 points, following three quarters that had registered below 50.

This is the second consecutive increase, which suggests that European companies were regaining trust in the Vietnamese market.

The key indicators were an increase in revenue and orders, and optimism about the overall economic outlook.

Despite positive signs, the BCI remains at 50, far below the highpoint of 79 in 2011, and the improvements over the last two quarters remain limited, with an increase of two points per quarter.

More than half of the businesses that took part in the survey are active in the services industry, a quarter in manufacturing, and the rest in trading and other activities.

In line with the last survey, there has been a continued increase in respondents assessing their current business situation as positive, from 40 per cent to 43 per cent.

The previous quarter saw a rise from 26 per cent to 40 per cent, and the current level reflects improved business sentiment.

Looking to the future, the business outlook has seen significant improvement, with members having positive expectations rising from 30 per cent to 43 per cent.

This development may be linked to the ongoing EU-Viet Nam FTA negotiations, the survey said.

Although business confidence has improved, 57 per cent of respondents assessed their outlook as either "neutral" or "negative".

Still, the survey found that reported investment appeared to be improving, and that more companies intended to have a significant increase in investment. This doubled from last quarter’s 7 per cent to 13 per cent.

Overall, investment plans look more positive than they did a year ago, with 76 per cent of respondents either expecting to keep or increase their investment levels, compared to 72 per cent a year ago.

The number of respondents expecting to cut investments further declined to 19 per cent from last quarter’s 24 per cent.

This again indicates a returning faith in Viet Nam’s medium-term future, and shows that Government initiatives are inspiring increasing confidence and optimism.

When asked about their expected number of orders and revenue in the medium-term, 84 per cent of respondents said they would remain constant or would improve.

In addition, concerns about inflation are declining, with 65 per cent of companies expecting inflation to have limited or no impact on their business in the medium-term, compared to 55 per cent in the last quarter and up from 43 per cent a year ago.

Members were also asked to indicate what they think the rate of inflation will be, and the average came to 5.13 per cent.

This is very close to last quarter’s estimate of 5.12 per cent and down half a percentage point on last year’s 5.63 per cent.

Respondents’ appreciation of the macroeconomic situation is also improving.

Whereas last quarter 57 per cent expected a further deterioration in conditions, and a staggering 72 per cent the quarter before, this has now fallen below the midpoint to 48 per cent.

In other words, 52 per cent of the respondents believe the economy will stabilise and improve in the future, something which has not been seen in the Business Climate Index since 2011.

Ministry tables mineral tax hike

The Finance Ministry is calling for comments on a proposal to raise the tax on mining iron ore, titanium, gold, copper and several other minerals by 3 to 10 percentage points.

The proposed increase is intended to bring in an extra VND508.6 billion (US$24 million) a year in tax revenue.

The ministry said the higher tax was aimed at discouraging exploitation of un-recycleable natural resources.

It added that the current taxes on 13 kinds of metal minerals were 10-15 per cent. Tax collection from mining in the past four years reached VND19.4 trillion ($923.8 million), VND26 trillion, ($1.23 billion) VND39.2 trillion ($1.86 billion) and VND41.3 trillion ($1.96 billion) respectively.

However, the ministry believed the current taxes should be revised to better reflect the higher added value gained from the use of modern technology.

Accordingly, tax on iron ore would be increased to 20 per cent from the current 10 per cent. The country had reserves of around 960 million tonnes and the yearly output was 3.5 million tonnes.

The tax increase on iron was expected to bring in VND320.3 billion ($15.2 million) a year.

Tax on titanium exploitation was also proposed to increase to 20 per cent from the current 11 per cent. Titanium exploitation and exports have been mainly ore with low value.

The increased tax on titanium alone would add between VND38.7 billion ($1.8 million) and VND123.8 billion ($5.9 million) to the nation’s coffers each year.

The ministry also asked for an increase in tax on gold from 15 per cent to the highest level of 25 per cent. Viet Nam has gold reserves of 154 tonnes.

It said technology used by domestic enterprises in gold mining and processing were not highly efficient, causing waste and harm to the environment.

The yearly tax collection revenue on gold would be VND348.3 billion, ($16.6 million) increasing by VND139.3 billion ($6.6 million).

Tax on copper was proposed to increase from 10 to 25 per cent.

If approved, the new tax would be in place from January 2014.

Mobile exports to UAE jump

Viet Nam generated US$1.02 billion from exporting phone handsets and components to the United Arab Emirates (UAE) in the first 4 months of this year, four times higher than last year’s corresponding figure.

The figures were made known by the Africa, West Asia and South Asia Department under the Ministry of Industry and Trade.

Vietnamese exports to the UAE have witnessed high growth over the years, with phone handsets taking the lead among the export items, the department said, adding that phone exports to the market rose from $108.3 million in 2010 to $363 million in 2011 and $1.5 billion in 2012.-

SBV lowers farm loan interest

The State Bank yesterday asked five commercial banks to reduce interest rates for existing loans to 10 per cent for raising pigs, poultry, tra fish and shrimp breeding and processing.

The bank told Agribank, BIDV, Vietinbank, Vietcombank and Mekong Housing Bank to make interest rates suitable to current market developments.

Short-term interest rates for lending in dong have declined for prioritised sectors, including agriculture and rural areas, many having hit 10 per cent, it said.-

HDBank teams up with insurer

HCM City Development Bank (HDBank) is to provide banking services to insurer Great Eastern Life Viet Nam under a strategic co-operation agreement signed on Wednesday.

The bank said it would help the insurance company manage income and expenditure accounts and transfer money to parties relevant to insurance policies.

HDBank general director Nguyen Huu Dang said developing cash management services was among the bank’s priorities.

SCB predicts interest rate cut

The Standard Chartered Bank said it expected a further cut of 50bps (0.5 per cent) in interest rate in the third quarter if authorities "remain comfortable with the inflation outlook and credit growth stays anaemic".

"We expect the SBV to lower the refinancing rate by another 50bps to 6.5 per cent in the third quarter. CPI inflation slowed to 6.61 per cent year-on-year in April from 6.64 per cent in March (market consensus: 6.95 per cent)," the bank’s latest Global Alert report released on Tuesday said.

It said inflation was expected to average 7.2 per cent year-on-year in 2013, down from the bank’s previous 8 per cent forecast.

The announcement came on the back of easing inflationary pressure and sluggish economic growth at the beginning of 2013. This is the second cut this year.

Local support industry needs to develop

The Government has been urged to provide incentives to spur development of the support industry in a bid to lure more foreign investment.

The call was made at the sixth forum on Viet Nam’s support industry, themed "Technological trend and key to success," held in HCM City on Wednesday.

Director of the HCM City-based Investment and Trade Promotion Center (ITPC) Pho Nam Phuong said many foreign manufacturing businesses failed to find eligible local component suppliers.

There were few qualified suppliers who could ensure efficient management, stable operation and compliance with legal regulations on safety standards during the manufacturing process, Phuong said.

Intel Viet Nam Company purchasing manager Nguyen Thanh Tam referred to the fact local suppliers had so far secured only low-value, short-term contracts which had not yet earned them credibility with customers, especially foreign groups.

JETRO executive director Hirotaka Yasuzumi compared Viet Nam’s locally made component supply of 28 per cent for Japanese firms in 2012 with Thailand’s 53 per cent and China’s 61 per cent rate.

From this, Japan planned to build a policy to aid Viet Nam’s support industry, focusing on trade exchanges rather than exhibition organisation, Yasuzumi said.

There was an increasing possibility of Japanese companies investing in Indochina, including Viet Nam, Yasuzumi said. He suggested Viet Nam seize the opportunity and develop its support industry to draw in more foreign investors.

The event was co-hosted by Thailand’s Reed Tradex Co, JETRO and ITPC.

GAS shareholders take profits as price hits record high

The price of PV Gas (GAS) shares hit a record high in recent days, prompting many internal shareholders to sell.

Stock analysts said the operation of the gas giant had been stable with high revenues and profits. The price of GAS shares had almost doubled since its debut in May last year, hitting a record high at VND62,000 (US$2.95) on Wednesday.

Viet Nam’s stock market is also rising with the benchmark VN-Index reaching over 520 points. Strong increases in large-cap shares such as GAS, dairy giant Vinamilk (VNM) or Masan Group (MSN) have bolstered the rallies. Many analysts warn that those shares are under pressure of a downward correction.

Since the beginning of March, many PV Gas executives have registered to sell shares which totalled nearly 50,000 shares. Many succeeded in their sales, including vice chairman Vu Dinh Chien selling 51,600 shares; chief accountant Nguyen Mau Dung 50,000 shares and deputy general director Pham Hong Linh 47,7000 shares.

PV Gas affiliates such as CNG Viet Nam, a supplier of compressed natural gas, sold its holdings of 100,000 shares.

CNG bought GAS shares at just VND31,000 ($1.48) before the company listed stocks on the exchange. Besides a 30 per cent cash dividend it received last year, CNG has earned a profit of 70 per cent from the investment.

According to a report on PV Gas of Phu Hung Securities Co, the gas business has a solid foundation and is likely to grow steadily thanks to and increase in the gas price.

Ending March 2013, PV Gas earned a whopping net profit of VND2.29 trillion (over $109 million) and held a huge cash amount of VND16 trillion ($762 million). It also paid a cash dividend of up to 30 per cent last year.

Latin America holds potential

Latin American markets offer a mine of untapped potential for Vietnamese enterprises to penetrate and expand their businesses.

That was the message from the Viet Nam Trade Promotion Agency at a conference in Ha Noi yesterday.

Viet Nam now has trade relations with all 33 countries and territories in the region with a total export and import turnover of US$5.5 billion last year, accounting for 3 per cent of the country’s total.

However, there was potential for this figure to further increase, said the Ministry of Industry and Trade’s deputy director of the American Market Department Tran Huy Dong.

Dong pointed out that demand for imported products in the region – which has a total population of more than 600 million - was huge and most had a taste for foreign products.

According to Do Viet Phuong, Trade Counsellor of Viet Nam in Cuba, the prices and quality of Vietnamese products were appropriate for the demands of regional consumers.

Some countries were even faced with a scarcity of goods, so all types of products were wanted, he added.

The region’s technical and hygiene standards for imported products were not as tight as those for Europe or the US market, Phuong said, adding that several Governments now had policies to diversify goods suppliers, including Asian countries like Viet Nam.

"Latin American markets would be a good choice if Viet Nam wanted to boost exports and reduce its dependence on traditional import markets," Dong said.

However, the long distance, language barrier and lack of market information remained difficulties for Vietnamese enterprises seeking to penetrate Latin American markets, experts said.

The geographical issues would push up transport costs and reduce the competitiveness of Vietnamese products, while Vietnamese products would face stiff competition from other Asian countries including China and India.

Phuong said trade organisations in Latin America would be willing to act as a bridge connecting and supporting enterprises.

A website about Latin American markets would be set up for enterprises to find information and discuss business opportunities via an on-line forum, Dong said.

According to To Xuan Canh, director of Hao Canh Sanitary Wares Company, the procedures should be simplified to save time.

He said trade promotion activities, such as exhibitions, should be enhanced for enterprises on both sides to seek business opportunities.

HCM City retail sales rise in 2013

HCM City has maintained reasonable socio-economic growth in the first five months of 2013, the HCM City People’s Committee chairman has said.

Le Hoang Quan said yesterday that the city’s total retail sales and service revenues rose by 7.7 per cent compared with the same period last year.

Quan was speaking at a meeting to review the city’s socio-economic growth. He noted that the CPI rose by only 0.66 per cent compared with December 2012, when it grew by 2.49 per cent.

Exports during the first five months were VND10.73 trillion (US$512 million), a year-on year increase of 4.3 per cent, while industrial production grew by 4.6 per cent.

Agriculture-forestry-seafood production increased by 6.7 per cent, while the number of tourist arrivals in the city was 286,200, a year-on-year increase of 6 per cent.

To promote business, Quan has asked the city’s Government agencies to take measures to help them settle bad debts and overcome other difficulties.

In the next seven months of 2013, the city will focus on measures for trade promotion and market expansion.

The city authority will promote exports, carry out programmes for price and market stabilisation, and help businesses reduce inventory by sending goods to remote areas and conduct demand-stimulus programmes in rural areas.

The city will also continue to improve management and accelerate work on major construction projects, said Quan.

Seafood sector likely to grow on VN-EU FTA

As foreign seafood importers are shifting their orders from China to other nations, Vietnam might be their next destination after the Vietnam-EU free trade agreement (FTA) is signed, said Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP).

Speaking at the Vietnam-EU Business Forum 2013 arranged by the Vietnam Chamber of Commerce and Industry (VCCI) and the Delegation of the EU to Vietnam in HCMC on Wednesday, Hoe said the FTA will create a great chance for the Vietnamese seafood industry to expand markets. For instance, he said, local companies can import seafood from a third nation for processing and export to the EU.

China is now the biggest seafood processing country but certain foreign orders have been shifted away from China, Hoe noted, adding Vietnam might be the next choice of EU importers through the FTA.

The FTA will help lessen non-tariff barriers like trade protectionist measures, plant and animal quarantine and future technical barriers through the agreement, VASEP expects.

Three years ago, the information that the EU might slap anti-dumping taxes on tra fish imported from Vietnam badly affected the nation’s seafood exports, Hoe told the meeting. However, with the agreement, the above barrier would be lifted, he said.

Hoe expects the FTA to help Vietnam attract more EU investors, especially in the seafood processing sector and related services which are the strengths of the EU.

A road map of tax cuts for seafood companies is needed in the FTA as the industry will not be entitled to preferential tariffs in line with the Generalized System of Preferences (GSP) of the EU in near future.

Seafood exports brought home over US$6.1 billion in 2012, growing more than 16 times in the last two decades, with exports to the EU making up 18.5%.

Auto, bike expo attracts 250 firms

he Saigon Autotech & Accessories 2013 opened in HCMC on Thursday, featuring nearly 400 stalls of 250 foreign and local companies.

With the number of display stalls up 40% against last year, the event this year is showcasing about 300 products which are mainly components, accessories, assembly and maintenance equipment and clean fuel.

The exhibition introduces high-end motorcycle models and heavy-duty bikes such as Harley Davidson, Rebel and Ducati along with products from Taiwan and Thailand. There is an overwhelming presence of display booths for battery-powered bicycles from China and Taiwan.

The automobile area, meanwhile, shows the Subaru brand with imported models including BRZ, Subaru XV 2.0i premium, Legacy 2.5GT and Outback 2.5i SUV.

Organized by Asia Trade Fair & Business Promotion Joint Stock Company and Taiwan’s Chan Chao International Co. Ltd, the exhibition runs until Sunday.

Shrimp farming seen becoming conditional business

Those wanting to raise shrimp may be required to have a minimum farming area of 2,000 square meters, with 15-20% of it for a settling basin, according to a draft of a rule specifying standards for shrimp farming.

The draft also mentions banning the use of forbidden antibiotics in aquaculture and discharging wastewater into sources of water for farming.

The General Directorate of Fisheries and the Ministry of Agriculture and Rural Development are collecting comment on the draft.

The above requirements, in fact, have already been imposed on shrimp and tra fish farming for years, but farmers have declined to comply with them, especially the settling basin requirement.

Nguyen Van Nhiem, chairman of the My Thanh Shrimp Association in Soc Trang, said authorities and experts had always asked farmers to develop settling basins to handle turbidity in water. However, because water was not heavily polluted back then, farmers did not treat it before use for shrimp farming.

Besides, a large area is required to build a settling basin. Therefore, farmers also ignore this requirement, he explained. However, for nearly three years now, more and more disease outbreaks in shrimp have been reported.

Meanwhile, there has not been an irrigation system for aquaculture in the Mekong Delta, but seafood farmers have to use the same irrigation system for rice farming. Therefore, when disease strikes their shrimp, farmers will discharge water into canals, but others get back that very water to raise their shrimp, enabling the rapid spread of the disease.

“As shrimp disease has not lessened, the requirement for settling basins set by the General Directorate of Fisheries will eventually benefit farmers,” said Nhiem.

The requirement for settling basins perhaps will get the consent of shrimp raisers. However, the problem now is not the lack of land for settling basins, but the lack of funding to continue shrimp farming.

Members of the My Thanh Shrimp Association currently have a combined 22,000 hectares for shrimp farming, but only about 20% of this area is in use. “Many association members after a few crops of heavy losses due to the sudden shrimp deaths have no money left to raise shrimp. We have land to develop settling basins as required by the General Directorate of Fisheries, but have no money to raise shrimp,” said Nhiem.

Debt trading market far from reality

he birth of the Vietnam Asset Management Company (VAMC) is not at all a magic wand that can instantly give rise to a debt trading market. It is the first step in a long journey ahead.

Tareq Muhmood, CEO of ANZ Vietnam Bank, told the Daily that it is still too soon to say so as the debt trading market has yet to take clear shape.

The presence of VAMC will make conditions favorable for bad debts to be traded, he noted, but evaluation will be a challenging matter. Banks want to get rid of bad debt and investors may be ready to pay 30% of a debt’s value but banks still want 100% of that, he said.

“VAMC is just the first step,” he said in an interview with the Daily.

Investors from Japan, Taiwan, South Korea and Singapore are optimistic about Vietnam, and some Western investors are also interested in the country, he said. “There are many reasons to invest here such as low labor costs, some good trade agreements with Asia and attractive tariffs. Therefore, I don’t think that VAMC or bad debt would affect investment decisions.”

But it doesn’t mean that Vietnam has no need to improve its attractiveness or keep a beautiful image in the eyes of foreign investors and even domestic investors because they may pour money into other countries in the future.

The establishment of VAMC is not a miraculous solution for the economy and the bank restructuring process, he said, adding some banks could recover rather quickly while others would have to merge with one another. “It would take several years.”

After the 1997-98 crisis in Asia, he said, it took Malaysia, Indonesia and South Korea at least four years to win back confidence of international investors.

Looking at the debt crisis in Europe, Cyprus and Iceland have not had a simple answer to the problem while the U.S. also needed several years to recover from its subprime mortgage problem, he said.

Japan has been solving bad debt for 20 years and still needs more time to work on that. “Therefore, I don’t think that Vietnam can immediately solve the problem,” he said. “I don’t think everything would turn wonderful after VAMC was launched.”

But the establishment of VAMC is an important move, Muhmood stressed, and international investors and credit rating agencies want to see this done as well.

New World Saigon management firm renamed

Hong Kong-based New World Hospitality, which manages the five-star New World Hotel Saigon in HCMC, has been renamed as Rosewood Hotel Group.

The hospitality group acquired the U.S. luxury hotel brand Rosewood in 2011 and has recently introduced this brand in Asia. The first Rosewood hotel in Asia will be located in Beijing, China, followed by those in Phuket, Thailand and in Bali and Jakarta, Indonesia.

Dang Huy Hai, deputy general manager of the New World Hotel Saigon, said the name change of the parent group did not affect the New World hotel in HCMC.

“We keep the current name and our business is as usual because New World remains one of the three brands owned by the group,” he said.

Rosewood Hotel Group manages 40 hotels under the three brands of Rosewood, New World and Pentahotels in 14 nations.

Hotels named New World are present in Dalian, Shanghai, Wuhan, HCMC and Manila. The group plans to double the number of New World hotels within the next five years, including a number of hotels in China.

First local project gets Conquas certification

Singapore’s Building and Construction Authority (BCA) has granted a certificate of Construction Quality Assessment System (Conquas) to the Celadon City project in HCMC, the first local project to get such accreditation.

Kicked off in October, 2011, Celadon City is an 80-hectare urban complex invested by Sai Gon Thuong Tin Tan Thang Real Estate Investment Joint Stock Company and contracted by Hoa Binh Construction and Real Estate Corporation. As the main contractor, Hoa Binh will construct blocks A and B of the Ruby zone with 1,448 apartments and convenience stores.

After nearly two years of BCA assessment, Hoa Binh has become the first contractor in Vietnam to meet BCA requirements, and thus Celadon City is the first project in Vietnam to conform to Conquas standards.

Conquas introduced by BCA is a strict standard assessment system to evaluate the quality of building projects from start to finish with specific scores. It is currently applied in Singapore, Malaysia and Australia.

Demand still high for high-end apartments

Despite property market difficulties, the high-end apartment segment has shown its resilience, with some projects having reported high demand in recent months.

Phu My Hung Corporation has sold 132 of 165 apartments within one day of the second sale last Saturday. An apartment of this project has a price tag starting from VND30 million per square meter, with VAT included.

The company launched the first sale of some 160 apartments in the middle of March to explore the market response. Also within one day, customers registered to buy 130 units.

The director of a property exchange said his firm did not completely focus on low-cost housing projects as the high-end segment could still find buyers. Besides, many homebuyers are ready to make cash payments, instead of using installment plans financed by banks, he added.

Most project investors care about financing and use deferred payment as a bait to attract customers.

For instance, Phu My Hung has rolled out a payment plan lasting up to 30 months, the longest duration the firm has ever offered. In addition to such a plan, the firm provides many loan incentives at different banks.

Also with the deferred payment plan, a couple of projects are selling their final apartments though their price is around VND30 million per square meter.

For the 66 final apartments of the Him Lam Riverside project in District 7 developed by Him Lam Land Company, customers will pay only half of the value and then move in. The rest will be paid in two years’ time with no interest.

Deferred payment also applies to The Estalla project in District 2 of Keppel Land Vietnam, enabling customers to take the keys of their apartments after paying 50%.

Similarly, for 71 final apartments of the Imperia An Phu project invested by Kien A Investment and Service Company, customers can move in after paying only 30% of the price. The rest will be paid over two years.

According to some project investors, the payment extension and discounts have proved attractive to customers, with more customers willing to come to project sites to inspect model apartments.

Vietnam sees impressive tuna export growth

While tra fish and shrimp are facing big trouble ahead due to dumping accusations and antibiotic problems, Vietnam’s tuna exports are having favorable conditions thanks to a high consumption in Europe.

According to the Ministry of Agriculture and Rural Development, the export turnover of tuna has reached US$155 million this year, up nearly 20% year-on-year.

Explaining the high growth, the Vietnam Association of Seafood Exporters and Producers (Vasep) said the European market has increased tuna imports after a long period of importing small amounts due to economic difficulties.

However, the export value of Vietnamese tuna will rise even higher if fishermen do not use bright lights to attract and catch tuna. This method helps reduce the catching costs but results in lower quality of tuna.

Together with tra fish, tuna is one of the major seafood products of Vietnam.

Tuna obtained an export turnover of US$380 million in 2011, accounting for 6.3% of Vietnam’s seafood exports, and was exported to 83 countries.

Meanwhile, the export value amounted to nearly US$570 million last year, with the U.S. market accounting for over US$245 million (42%) and the European market US$114 million (20%).

Business vexed by IPR protection problems

Though Vietnam’s regulations on intellectual property rights are sufficient, local businesses are frustrated with the agencies responsible for protecting their intellectual property rights.

At a workshop on IPR early this week, participating companies voiced their displeasure with intellectual property protection agencies for not properly protecting them from IPR infringements.

Ngo Thi Bau, deputy general director of Nguyen Tam Fashion Co., known for the brand Foci, said she once attempted to pursue a case in which Foci clothing items were counterfeited, but to no avail.

She recalled filling in many papers and going through several checks by the competent agencies. “Regulations on IPR are sufficient, but I’m uncertain about the bodies in charge of IPR protection,” she noted.

A representative from Viet Tien Garment Co. said the firm had received advice on how to cope with counterfeits from the Office of Intellectual Property under the HCMC Department of Science and Technology, but this agency did not do a good job.

“We got stuck in the settlement stage and did not know how to get out of that,” said the representative.

Hoang To Nhu, deputy head of the Office of Intellectual Property, said that in some particular cases, law could not be enforced because of high levels of sophistication and complexity in intellectual property infringements.

For example, there was a store selling unbranded powdered food. When there was a buyer, the store would package and label the food with a protected trademark. The company owning the trademark wanted to bring the case to court but lacked evidence. “The office currently has seven inspectors, but they have to cover many areas,” said Nhu.

Ngo Duc Hoa, chairman of Thang Loi Garment Co., said the new blankets and pillows of his company had been faked and sold at half price. Other companies in the same situation as Hoa’s firm advised him to ignore it.

Representatives of many firms wondered why the local market was flooded with counterfeit and contraband goods from China despite regular inspections by authorities.

Con Dao tourist port to open next year, depending on capital

Con Dao island district was working with contractors to ensure a passenger port was ready by 2014, according to the Ben Dam Port management board in the southern province of Ba Ria-Vung Tau.

The port will cover 2.56ha of coastal land, with a wharf, a main port capable of receiving two ships at once, an embankment and other auxiliary buildings such as a ticket booth and service centre.

Construction was expected to come to an end in 2012, but only 35 per cent of the plan has been finished to date.

Vu Xuan Quyen, head of Ben Dam Port authority’s investment management division, blamed the delay to a shortage of capital.

Once completed, the port will contribute to the locality’s socio-economic development, particularly in maritime services and tourism.

Property sales rule draws criticism

Real estate developers proposed doing away with the regulation that all property transactions be carried out on the trading floor, saying the rule had not achieved the desired effect.

Created in accordance with the 2006 Law on Real Estate Business, the regulation sought to make the property market more transparent.

But while major investors, particularly State-owned enterprises, complied with the regulation, many other developers did not, said Dang Tien Phong, director of Song Hong Joint Stock Corporation under the Ministry of Construction.

Instead, many investors negotiated directly with buyers and set their own trading floors or associated with other trading floors, which failed to ensure transparency.

"If the regulation is not removed, it might create an unfair playing field," Phong told Viet Nam Investment Review.

The process of listing property on trading floors was also complicated, as was the transaction process, said Pham Thanh Hung, deputy director of Century Group.

The regulation that property must be announced and listed on the trading floor a week before transaction was only appropriate when the real estate market was booming, he said.

In a frozen market, the regulation would push up costs, he added. In addition, many real estate trading floors were not managed effectively, which would pose a risk to buyers. These trading floors took advantage of regulation loopholes to mobilise capital and transfer property illegally.

According to an expert from the real estate association, a large number of trading floors were established while the property market was booming, but not enough attention was paid to quality or management.

When the recession hit the market, many floors shut down without reporting the action to the construction department, making management difficult.

According to Nguyen Van Minh, deputy president of the Viet Nam Real Estate Association, only a few property trading floors conducted legitimately transparent operations.

As of the end of March, there were more than 1,010 trading floors throughout the country, mainly in Ha Noi and HCM City.

Out of over 500 trading floors in Ha Noi, more than 122 halted operations last year and 200 others did not have any successful transactions.

Starting in the third quarter, property trading floors will be required to report their operations once a month.

The laws on housing and real estate business were being amended to ensure appropriateness with the current reality, the ministry said.