New decree to disqualify many rice exporters next year

New decree to disqualify many rice exporters next year

QĐND – Monday, November 02, 2009, 9:46 (GMT+7)

Many firms in Vietnam will not be allowed to continue exporting rice under a new decree that takes effect next year, industry insiders say.

Under a decree drafted by the Ministry of Industry and Trade, local rice exporters will have to meet many requirements before being allowed to ship rice abroad.

For instance, they must have storage capabilities of at least 5,000 tons of rice and their rice milling plants must be able to process a minimum of 10 tons per hour. Exporters failing to make any shipments for 12 consecutive months will have their licenses revoked.

Pham Van Bay, director of An Giang Agriculture and Food Import Export Company, said the move was necessary to tighten control over rice trading in Vietnam.

The new regulations would help eliminate many exporters who just want to pocket quick cash, causing unfair competition by undercutting other exporters.

Nguyen Van Duong, director of the Department of Agriculture and Rural Development in Dong Thap Province, said he supports the regulations specifying the facilities that rice exporters must have.

Many companies didn’t have adequate facilities for rice trading but they still joined the business anyway, Duong said. “When prices drop, they would just quit and go against their promise to purchase rice from farmers.”

Exporters said they expect the new decree to improve the business environment by getting rid of disreputable businesses.

However, some said they are still doubtful about the decision-making role given to the Vietnam Food Association. The draft decree stipulates that exporters still have to register with the association for a permit to ship rice abroad.

The director of a company in the Mekong Delta’s Dong Thap Province said the role should be given to the Ministry of Industry and Trade as it is hard to ensure that the association will treat non-members and members alike.

Nguyen Van Khang, director of Tien Giang Province’s Department of Agriculture and Rural Development, said the national food association can be in charge of overseeing the registration of rice export contracts as long as there was a mechanism to monitor the association strictly.

The Vietnam Food Association has faced repeated criticism from provincial authorities and exporters for the way it has allocated shipment quotas to rice exporters in each locality. Many exporters said they have been allowed to export smaller volumes than their capacities while the country’s two largest food companies, Vinafood 1 and 2, were granted disproportionately bigger quotas.

Vietnam plans to remove its rice export quota system and make it more market-based, a local newspaper cited Bui Ba Bong, deputy minister of Agriculture and Rural Development, as saying in September.

This year’s national rice export target of 6 million tons, revised upwards because of a bumper harvest, has been achieved; and a target of 6.2 million tons has been set for next year.

Source: thanhnien

 

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Vietnam retail market to expand over next two years, say experts

Vietnam’s retail market is forecast to explode over the next two or three years, with the appearance on high streets of many foreign retail companies, including shopping centers and large sized supermarkets, said Fabrice Carrasco, general director of TNS WorldPanel Vietnam on October 30.

Shoppers in a supermarket in Vietnam

Speaking at a retail and distribution conference held in Ho Chi Minh City, Mr. Carrasco said Vietnam’s retail market is smaller than that of other countries in Southeast Asia, such as Thailand, Malaysia and Philippine, however, Vietnam’s consumer habits are changing sharply.

According to RNCOS, a global market research company based in the US, retail turnover in Vietnam will top US$85 billion in 2012.

Vietnam’s retail turnover was $23.7 billion in 2008 and is expected to rise to $39 billion by the end of this year.

Bui Ngoc Hong, a law consultant at Indochina Counsel, said foreign firms have been eyeing retail and distribution business in Vietnam.

Indochina Counsel has alone supported seven foreign retail companies, which will appear on Vietnam’s high streets in the next two years, Mr. Hong said.

2009 is considered an important milestone year for trading and distribution sectors in Vietnam. Distribution in Vietnam is set for a shake up, as foreign companies move in following the country’s commitment to open the market in 2009, on the back of World Trade Organization accession in 2007.

As a result, firms from abroad have been setting up shop here since early this year, particularly firms from Japan, though no official statistics are currently available.

Japanese sewing machine manufacturer Brother International recently won a license to set up a distribution company with an initial investment of $2 million.

Stainless steel and construction material producer Sojitz opened an import, export and distribution branch in March.

Car manufacturer Nissan and electronics producer Sharp have both started distributing their own products.

According to the Ministry of Industry and Trade, Vietnam’s annual retail turnover has increased by 20 percent, on average, over the last few years and is forecast to maintain the same growth for the near future.

Source: SGGP Bookmark & Share

Bigger export market just next door

by Xuan Huong

Workers package coconut sweets for export at Dong A Co in the southern province of Ben Tre. — VNA/VNS Photo Tran Tong

BeN TRE — Earnings from exports to China could be higher if domestic companies were more knowledgeable about marketing, according to speakers at a conference held last Friday in Ben Tre Province.

Nguyen Quang Minh, representative of the Viet Nam Trade Promotion Agency in HCM City, said with a population of more than 1.3 billion, China had a huge demand for many kinds of products, and was a potential market for Viet Nam.

He added that agricultural products such as rubber, cashews, tropical fruits, wooden products, footwear, frozen and dried seafood, rubber and mineral resources, and industrial products are among key exports to China.

Do Ngoc Chuong, deputy head of the Asia-Pacific Market Department, said with its high growth rate in recent years, China also had high demand for energy and other raw materials for production.

“Though exports to China have increased year by year, Viet Nam exports mostly raw products with low added value,” Chuong said.

To promote exports to China, he said Vietnamese companies should be more active in seeking partners through Chinese trade associations and participate in international trade fairs in China.

In addition, local companies should increase promotion activities in China’s major consumption centres, have more sale agents and set up joint ventures with Chinese partners to produce and distribute their products.

He also recommended local businesses to map out a long-term development plan and further study the Chinese market, understand its import-export regulations, and focus more on upgrading technology to enhance the competitiveness and diversity of export items.

In addition, businesses in the same sector should establish an association to protect their legitimate interests, Chuong said, adding that local exporters should work together to boost exports to China instead of competing with each other.

To reduce its trade deficit with China, Viet Nam should strengthen export of potential goods, said Chuong, who is also former Vietnamese trade counselor in China.

Last year, bilateral trade value between Viet Nam and China reached US$20.1 billion, an increase of 27.3 per cent over 2007.

Viet Nam exported $4.5 billion in product value to China and imported $15.6 billion in product value.

Businesses at the meeting suggested that the Asia-Pacific Market Department, as well as Vietnamese trade office in China, support them in market research and forecast activities so they could get better results.

Organised by the Viet Nam Trade Promotion Agency under the Ministry of Industry and Trade and the Department of Industry and Trade in Ben Tre Province, the conference has attracted many businesses from the South including Long An, Tra Vinh, Tay Ninh, Ca Mau and the host province of Ben Tre. —

Source: vietnamnews.vnagency.com.vn

Viet Nam faces severe power shortage for next few years

Technicians inspecting a transformer. Electricity of Viet Nam (EVN) is predicting a 1,400MW shortfall of electricity for the next few years. — VNA/VNS Photo Ngoc Ha

HCM CITY — Viet Nam imported about 2.2 billions kWh of electricity from China in the first seven months of this year, 13.2 per cent more than in the same period last year, according to Electricity of Viet Nam (EVN).

EVN said the country is facing a severe power shortage of about 1,400MW or 10 per cent of total capacity at rush hours.

Its experts have also forecast the shortage will persist over the next few years. Breakdowns at electrical plants nation-wide, as well as the delayed operation of new plants have been blamed for the shortage.

In an effort to increase supply sources, EVN has increased purchases from China and local power stations outside its grid. EVN bought 15.6 billion kWh in 2009 from local power stations, 22.79 per cent more than in the same period earlier. The output of conventional commercial power went up to around 41,1 billion kWh in the first seven months, an increase of more than 8.83 per cent.

Since it is the rainy season, hydropower stations are running at maximum capacities. EVN has asked the Hoa Binh Hydropower Plant to keep up water in its reservoir at the highest level and prepare to hoard water for the next dry season. Thermal and gas power stations are also running at maximum capacity.

EVN has said that power purchases from China will be based on actual needs.

Contractors have been asked to urgently expedite projects, complete pilot works and make them operational at the earliest. Eleven power stations are set to be linked to the national grid this month and three other projects are set to be launched.

The national daily output of electricity is expected to average 250 million kWh this month and the biggest output is estimated at 13,800 – 14,100kWh, according to EVN. —

Source: vietnamnews.vnagency.com.vn

Inter-Korean military talks likely to resume next week

Seoul (VNA) – The Republic of Korea (RoK) has responded to the Democratic People’s Republic of Korea (DPRK)’s proposal for military talks by suggesting an early October date, said a RoK’s military source on September 29.

The RoK suggested that the military meeting would be delayed until early next month instead of September 30 as the DPRK’s request, Yonhap News Agency said.

The source did not elaborate on the exact date, but Yonhap said it could be October 4 or 5.

Previously, Yonhap reported that the DPRK’s military mission to the truce village of Panmunjom told its RoK’s counterpart that Pyongyang proposed that the two sides “discuss issues about implementing agreements that have been reached” so far between their military authorities.

The talks, if held, will be the first of their kind since RoK’s Lee Myung-bak government was inaugurated in February. Military talks between the divided Koreas were last held on January 25, according to the news agency.-

Philippines continues to import rice next year

Hanoi (VNA) – The Philippines intends to import some one-tenth of its rice requirements early next year despite expectations of good harvest for the period, the country’s agriculture chief said.

The Philippines, one of the world’s biggest rice importer, may buy as much as 2 million tonnes of the grain, Agriculture Secretary Arthur Yap was quoted by news agencies as saying.

The country remains open to negotiating possible government to government rice import deals with the Republic of Korea and Japan, he said.

This year, the Philippines has imported 2.3 million tonnes of rice. It expects to produce 17.3 million tonnes of rice next year.-

RoK President Lee to visit Russia next week

Seoul (VNA) – The Republic of Korea (RoK) President Lee Myung-bak will visit Russia from September 28 to October 1 for a summit with his Russian counterpart Dmitry Medvedev.

The two leaders will discuss closer cooperation in the energy and resources sectors and in the denuclearisation of the Korean Peninsula, Yonhap news agency quoted the RoK presidential office (Cheong Wa Dae) as saying on September 22.

During their summit, scheduled for September 29 in Moscow, President Lee and President Medvedev will also discuss concrete measures to strengthen ties in the aerospace industry and a three-way economic development project involving the Democratic People’s Republic of Korea (DPRK), Yonhap added.

Additionally, the two presidents will hold intensive talks regarding the RoK’s long-term and stable imports of Russian natural gas, and joint development of offshore mines in Russia’s Kamchatka Peninsula.

According to Yonhap, about 30 accords on bilateral cooperation in the development of small-sized satellites are scheduled to be signed before issuing a joint statement. –

Power plants told to prepare for next year’s surging power needs

The second turbine of Tuyen Quang hydroelectric plant has been put into operation, bringing the plant’s total capacity to 5 million kwh of electricity per day, helping to partially ease the country’s power shortage, particularly during the summer season. — VNA/VNS Photo Huy Hung

HA NOI — The North of Viet Nam would likely fall short of around 200 million kWh of electricity in the dry season of 2009, Minister of Industry and Trade Vu Huy Hoang revealed on Wednesday.

Next year, many challenges were likely to arrive, and the power sector must plan ahead, he said at a working session.

Hoang stressed that the most important thing for the power sector was to raise its total power generating capacity to 18,000MW in 2009 to meet growing demands.

Electricity of Viet Nam (EVN)’s General Director Pham Le Thanh estimates that the country will consume over 41 billion kWh in the dry season and 87 kWh in the whole year.

From now to the end of the year, EVN plans to put more than 10 power plants into operation with a combined capacity of 3,000MW. The new electricity sources include A Vuong, Pleikrong, Ba Ha, Ban Ve, Se San 4, An Khe Kanak, Hai Phong 1, Quang Ninh 1 and O Mon 1 power plants.

EVN’s target to raise its capacity by 14 per cent was reasonable compared to the anticipated economic growth of 7 per cent, Hoang said.

The minister asked EVN to be more efficient in developing a suitable maintenance schedule for power plants to avoid closing down several major plants at the same time.

The sector was told to meet essential needs of production and daily life of the people while ensuring electricity quality and safety, he said.

EVN Chairman Dao Van Hung said the group still worried about its capability to supply enough electricity in face of difficulties in financing power projects which are scheduled to be completed in 2009.

The group still needs VND8.1 trillion ($480 million) for current projects underway. Recent increases in interest rates and rising building costs are making the projects more expensive

EVN also faces difficulties in raising capital for itself. EVN should have equitised by now 11 subsidiary companies but because of the sluggish stock market, the initial public offering have been delayed.

According to Thanh, demand for commercial electricity this year is predicted to reach 67.29 billion kWh, 15.16 per cent higher than last year.

Next year, total electricity volume produced and imported will be 86.67 billion kWh, 66 per cent of which produced by EVN. —

Indonesia to discuss ASEAN charter next week

Jakarta (VNA) – The Indonesian government and House of Representatives (DPR)’s Commission-I overseeing foreign, defence and information affairs, will discuss the ratification of the ASEAN Charter next week, local media reported.

“It (discussion) was scheduled on September 8, but we still maintain contacts by phone, so there is no fixed date yet,” Foreign Ministry spokesman Teuku Faizasyah was quoted by Antara news agency as saying.

The ASEAN charter discussion will be carried out behind closed doors, Spokesman Faizasyah said.

Brunei, Cambodia, Laos, Malaysia, Myanmar, Singapore and Vietnam have already ratified the document which was signed by heads of the ten members of ASEAN during the grouping’s summit in Singapore in 2007.

Three other ASEAN states – Indonesia, the Philippine and Thailand, have yet to ratify the ASEAN charter, which contains 13 chapters and 55 articles.-