Business in brief in 8 March 2012
Vietnam has earned approximately $331 million from exporting more than 744,000 tons of rice in the first two months of 2013, according to the Vietnam Food Association (VFA). In February alone, the country exported nearly 340,000 tons of rice, worth approximately $147.6 million. Rice sales are expected to reach 600,000 tons in March and about 7.5-7.6 million tons for the entire year. In 2012, Vietnam’s rice exports hit 7.72 million tons, an increase of 8.29pct compared to the previous year, grossing a total of $3.45 billion. Mekong River Delta rice traders have purchased nearly 212,000 tons of rice for reserve starting from February 20, which accounts for 21pct of the target reserve purchases. As a result, rice prices have risen slightly by VND150-200 per kilogram.
Insurance firm Prudential Vietnam in 7th March donated US$49,000 to four hospitals in the Mekong Delta for a health project aiming to improve neonatal intensive care. The funds, which were transferred via the Breath of Life program run by the East Meets West charity foundation, will be used to provide essential technology and training for health staff at the four referral hospitals in the provinces of Long An, Tien Giang, Dong Thap, and An Giang. The equipment being sent to each hospital includes a machine to treat babies suffering from respiratory distress, a phototherapy machine to treat jaundice, an infant warmer to help premature babies regulate body temperature, a light meter, a pulse oximeter, a two-year supply of alcohol gel, and other neonatal medical supplies. In 2012, Prudential provided approximately VND19 billion ($913,500) to different community development projects.
India and Vietnam have firmed up an agreement on maritime cooperation which makes it mandatory on merchant vessels to help and protect each other’s vessels in distress. The Indian Express has learnt that the pact, which has 18 clauses, has been approved by the Union Cabinet on Thursday, after it was vetted by the Ministries of External Affairs and Home Affairs among other government agencies. Sources said the agreement is an outcome of a proposed idea by Hanoi some months back, after which New Delhi accepted and both sides negotiated it. Government sources said the pact initiated by the shipping ministry aims to stimulate steady growth in maritime traffic.
Vietnam regards Denmark as one of its top economic and trade partners in Europe, said Deputy Prime Minister Nguyen Xuan Phuc at a reception for the visiting Danish Minister for Trade and Investment Pia Olsen Dyhr held in Hanoi on March 7. Phuc thanked Denmark for its continued ODA and supporting for Vietnam’s economic and trade relations with the European Union (EU), especially during its country’s rotational EU Presidency. The Deputy PM insisted that Denmark help Vietnam in its FTA negotiations with EU countries and encourage them to recognize Vietnam’s market economy status in time. For his part, the Danish Minister pledged his all-out efforts to bolster economic cooperation between the two countries. He also asked the Vietnamese Government to create the best possible conditions for Danish investors to do long-term business in the country.
Vietnam wants to push two-way trade with the European Union (EU) and accelerate negotiations on the free trade agreement (FTA) between the two sides. Prime Minister Nguyen Tan Dung made the statement at a reception for EU Trade Commissioner Karel de Gucht in Hanoi on March 7. Dung said he believes with constant effort and political determination, both sides will finalize FTA negotiations later this year, helping boost Vietnam–EU trade relations for shared and practical benefits. Gucht, who is in Vietnam to attend related meetings within the framework of the 19th ASEAN Economic Ministers’ Retreat, said the EU wants to increase links with Vietnam and other ASEAN member countries. The EU will make every effort to promptly conclude bilateral FTA negotiations with Vietnam, he said. The first round of negotiations took place in Hanoi last October. The second got underway in Brussels in January, 2013 and the third round is scheduled for April 22, 2013 in Hanoi.
Vietnam’s seafood sector should make greater efforts to tap the full potential of the Australian market by promoting and diversifying its product range. Australia is now Vietnam’s fifth largest seafood importer. Last year, Vietnam seafood exports to Australia increased by 11.69 percent, a promising trend compared to previous years. Vietnam’s trade office chief representative in Australia, Nguyen Bao, has affirmed that Australia has great potential for Vietnamese businesses to increase exports of seafood products. Vietnam’s seafood sector should take immediate measures to ensure food hygiene and safety as well as improve the efficiency of trade promotion activities, he said. Every year, Australia imports around 200,000 tons of seafood products and Vietnam currently represents about one quarter of their import volume.
The Dong Nai provincial People’s Committee and the Kansai Bureau of Economy, Trade and Industry (KBETI) of Japan on Wednesday discussed future co-operation in support industries. The two sides during their meeting shared unanimity to create favorable conditions for support businesses from the Kansai region to invest in the southern province. Dong Nai will establish a consultation board to provide all-around support for Kansai businesses that want to operate in the locality. A training system will also be established to provide human resources for the area’s growing industrial sector and increase links between Japanese businesses and training centers in Dong Nai. More than half of Kansai business projects investing abroad target Asian countries, said KBETI Head Toshihiro Kobayashi, adding that co-operation with Dong Nai Province created a new investment direction for Kansai businesses.
Vietnam Airlines will reduce airfare to Europe by as much as 27 per cent from now until March 30, the national flagship carrier recently announced. Accordingly, round-trip fare from Vietnam to Frankfurt or London is now only US$550 and a trip to Paris now costs $600. However, depending on the seat situation, the fares may be higher. These fares do not include taxes and surcharges.
A seminar on energy policy for the 21st century and challenges to Vietnam and Germany was held in Hanoi on March 7. The event was co-organized by the Central Institute for Economic Management (CIEM) and Germany’s Friedrich-Ebert-Stiftung (FES) institute during a visit by Dr. Matthias Machnig, Minister for Economy, Labor and Technology of the German state of Thueringen. Speaking at the event, Machnig highlighted the role of energy in the 21st century, saying that the global economy should go in the direction of sustainable development and “green growth.” Such a change requires the re-organization of production systems, consumption structures and people’s lifestyle, he said. In addition to sharing his country’s policy on energy production and consumption, the minister recommended a number of policies on the use of renewable energy and the reduction of greenhouse effects in Vietnam.
A seminar on monitoring the hygiene of Vietnam’s agro-fishery exports took place in Tokyo on March 6. The event was jointly organized by the Vietnamese Ministry of Agriculture and Rural Development (MARD), the Vietnamese Embassy in Japan and the ASEAN–Japan Centre. Participants at the event learnt about Vietnam’s quality management, the hygiene and safety of its agro-fishery products exported to Japan as well as the food hygiene and safety laws issued by the Vietnamese National Assembly that took effect in July, 2011.
Vietnam International Bank (VIB) has officially launched the program “VND 1 trillion at a maximum rate of 11% per annum for rice stockpiling in the 2012-2013 Winter-Spring crop” from March 6-31. Accordingly, enterprises assigned by the Vietnam Food Association to stockpile rice harvested in the 2012-2013 Winter-Spring Crop can borrow loans from VIB at a maximum rate of 11 per cent per annum. Particularly, the Vietnamese government will support 100 per cent interest rate for these loans through May 2o, 2013. VIB is one of a few banks which were approved by the State Bank of Vietnam (SBV) to offer loans for rice reserves in the Winter-Spring crop this year. Through this program, enterprises will not only get a large source of finance for stockpiling rice but also enjoy preferential lending rates and financially significant support from the government.
