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Posts Tagged ‘long-term’

Plastics industry needs long-term strategy

In Uncategorized on January 8, 2011 at 4:11 am




Plastics industry needs long-term strategy


QĐND – Tuesday, January 04, 2011, 20:42 (GMT+7)

Although the fledgling plastics industry has recorded remarkable growth over the recent period, it still faces many difficulties and it is essential to devise a long-term development strategy, experts have said.


This conclusion was drawn at a conference to discuss a draft plan for the development of the plastics industry until 2020 held in Hanoi on Jan. 2.


The industry posted 1 billion USD in export turnover last year, 21 percent up against the previous year. It is expected that the sector will retain an annual growth rate of 18-20 percent by 2020.


The industry currently exports products to 41 countries, including the US , the EU, Japan and the Philippines.


According to the Ministry of Industry and Trade (MoIT), the country now has more than 1,000 plastics companies, located mainly in HCM City and the southern provinces of Dong Nai, Binh Duong and Long An, generating about 118,000 jobs.


Le Quang Doanh, chairman of the Vietnam Plastics Association (VPA) said the sector needs restructuring to raise the proportion of value-added products such as packing and construction materials by 2015.


Ho Thi Kim Thoa, deputy minister of MoIT, affirmed the sector has great potential for the domestic sale of household products.


In terms of technical products made for electronics, construction and other manufacturing sectors, Vietnamese products were greatly appreciated by importers, she said.


“To sharpen the competitive edge of local producers, manufacturers need to further improve the quality of their products, diversify designs and expand their distribution networks,” she said.


Doanh recommended the Government and relevant State bodies develop systems to collect waste plastics more systematically, as the resources would help ease pressure to import raw materials for local production in the face of a global price hikes.


“This will not only help Vietnam protect environment, but also save foreign currency spent on imports,” he said.


Vietnam currently needs about 2.2 million tonnes of raw materials such as polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC) and hundreds of other chemical accessories, whereas local sources can only provide 450,000 tonnes.


Dao Duy Kha, deputy general director of the Vietnam Plastics Company, pointed out deficiencies in the sector, particularly in design and products that lacked the qualifications necessary to meet standards set by international importers, with export value only accounting for a tiny 0.02 percent of the total global export value.


Experts have urged companies to apply modern technologies to improve product quality and cut costs.


Truong Thi Huyen Nga, an official from the MoIT’s financing department said that to encourage local companies to produce materials, the Government should offer preferential interest rate loans for a duration of 10-15 years.


Corporate income tax should be reduced to 10 percent from the current rate at 25 percent in the first five years of operation since it makes profit, and to 15 percent in the next five years, she suggested.


Nga also urged firms to conduct further market in existing markets and explore new opportunities.


Source: VNA


Source: QDND

Long-term strategy to cope with climate change

In Uncategorized on November 7, 2010 at 1:20 pm

Promoting domestic products: long-term plan needed

In Uncategorized on October 17, 2010 at 10:25 pm




Promoting domestic products: long-term plan needed


QĐND – Sunday, October 17, 2010, 20:41 (GMT+7)


Vietnamese businesses have responded well to the “Vietnamese Using Vietnamese Products” campaign since its was launched a year ago and they have achieved significant results.

The sales of domestic products such as garments and textiles, food, and confectioneries have seen sharp increases and consumers now have more options.


In the second phase of the campaign, most domestic businesses hope they will enjoy an even sharper growth rate of about 13.6 percent, twice as much as in 2010.


More than 60 million people live in rural area in Vietnam which is a great potential market and consumers have had more chances to buy high-quality products through campaigns to bring Vietnamese goods to rural areas. It has created impetus for businesses to improve their products to meet consumer demands.


According to the Ministry of Industry and Trade, there have been 68 campaigns to bring Vietnamese goods to rural areas with the participation of 857 businesses and they have attracted 4.7 million customers with a turnover of VND1,500 billion.


Pham Duc Tien, Deputy of the Hanoi municipal Department of Industry and Trade (DoIT), said in addition to promotions, the city recently held two campaigns to bring domestic products to 31 trade fairs in seven suburban districts.


Many manufacturers have also opened retailers in rural areas, said Tien.


Representatives of many provincial DoIT agree there should be a long-term policy to ensure further success.


Tran Vinh Nhung, Deputy Director of Ho Chi Minh City DoIT, said his department is working closely with other DoIT in the southern key economic region to create a supply of Vietnamese products to meet consumer demands and stabilise prices.


Ho Chi Minh City will focus on establishing a network of retail outlets and commercial centres in high-demand areas like industrial parks and suburbs, Nhung said.


Binh Duong DoIT Director Nguyen Thi Dien said although the province has held 17 trade fairs in rural areas and industrial parks, each with a turnover of more than VND1 billion, they have not met all consumer demands. Therefore, businesses should work with the DoIT to make the campaign more effective.


Dien also suggested promoting a “Vietnamese Product Week” to support local campaigns.


Minister of Industry and Trade Vu Huy Hoang said his ministry has agreed with the Vietnam Cooperative Alliance on a pilot programme to encourage agricultural cooperatives to become distributors for businesses.


If successful, the model will then be expanded nationwide, Hoang said.


Dinh Thi My Loan, Secretary General of the Vietnam Retailers Association, said as traditional retail models still hold the lion share of the market in Vietnam, her association will try to expand in different directions.


Imports are another factor that stands in the way of domestic production and the effectiveness of the campaign. Modernising the technology to improve the quality of domestic products is necessary to improve the competitiveness of Vietnamese businesses.


Truong Quang Hoai Nam, Director of the MoIT’s Domestic Market Department, said the MoIT is designing the nation’s 2011 trade promotion programme in which associations and businesses will cooperate to provide customers with more information and minimize unfair competition.

Source: VOV

Source: QDND

Temporary stockpiling – an immediate or long-term solution?

In Uncategorized on August 10, 2010 at 3:22 pm




Temporary stockpiling – an immediate or long-term solution?


QĐND – Tuesday, August 10, 2010, 20:50 (GMT+7)

Temporary stockpiles of farm produce can benefit farmers and businesses. But how much and how long this needs to be done remains an open question.


There is no denying that temporarily stocking up on coffee, rice and salt would help to make a better profit. However, when the price of coffee starts to go up, the scheme is still underway. Had the Government agreed to provide loans for temporary stockpile earlier, it would have been much more helpful to farmers and businesses involved. Why so?


According to Nguyen Van Dong, Director of the Hau Giang provincial Department of Agriculture and Rural Development, since the start of the Summer-Autumn crop, the early rice harvest and the delay in adopting a policy for temporary stockpiles forced rice prices down to VND2,500-2,700 per kg. However, after the policy was implemented, the situation in Hau Giang has improved significantly with the price of rice increasing from VND3,500 to VND 3,800 per kg.


Under the Government policy, the temporary stockpiling of coffee would have expired on July 15 but businesses had then purchased only 10 percent of the set target. The Vietnam Coffee and Cacao Association (VCCA) said that the purchase of 60,000 tonnes of coffee had driven the price up to VND30,000 per kg. If the stockpiling was made earlier, it would be more helpful.


VCCA Chairman Luong Van Tu said that farmers need capital for temporary stockpiles while businesses want to stock their products. In recent times, stockpiles have driven coffee prices up which has greatly benefited farmers; export coffee is currently priced at US$1,600/tonne and farmers can now earn US$200 per tonne higher than before.


The Government’s policy has helped many businesses overcome difficulties and avoid bankruptcy.


Salt makers are suffering losses from a drop in prices. Currently, farmers in Bac Lieu have to sell salt at a very low price, from VND250-500/kg.


Le Kim Hung, Director of the Department for Industry and Trade in Ninh Thuan – the country’s biggest salt producing province – said that his department has asked a local company to purchase salt as soon as possible. Prices have also been fixed to ensure that salt makers can make a reasonable profit.


Judging from the prices of the above mentioned products, it is essential to develop a purchasing programme to support farm products. In addition, trade associations and management agencies should propose more measures to help businesses purchase products in time.


Pham Van An, Director of the Department for Agriculture and Rural Development of Lam Dong province- one of the five central highland provinces that grows a lot of coffee, said that both farmers and businesses will enjoy more benefit if the policy is carried out very soon. Therefore, it is necessary to draw up a solution for early temporary stockpiles.


Nguyen Van Dong, Director of the Hau Giang provincial Department of Agriculture and Rural Development, also shared his views by emphasizing the need for temporary stockpiles to prevent market fluctuations due to forcible price gauging which damage both farmers and businesses.


Source: VOV


Source: QDND

Long-term loans join in subsidies

In Vietnam Economy on October 15, 2009 at 9:36 am




Long-term loans join in subsidies


QĐND – Wednesday, October 14, 2009, 22:10 (GMT+7)

Medium and long-term business loans will now be eligible for the Government’s subsidised-interest loan programme, according to a new State Bank of Vietnam circular.


Under Circular No 21/2009/TT-NHNN, which amended Circular No 05/2009/TT-NHNN, loans of terms in excess of 12 months and disbursed between April 1 and December 31,2009, would be eligible for the interest subsidy.


Since January, about 17 trillion VND (952 million USD) has been spent as part of the Government stimulus package to subsidise the interest commercial banks collect on short-term loans, encouraging banks to lend and companies to borrow at preferential interest rates to finance production.


According to a State Bank report, commercial banks and other financial institutions have since lent nearly 409.4 trillion VND (22.9 billion USD) under the programme.


Private enterprises have borrowed 273.2 trillion VND (15.3 billion USD) under the programme, State-own enterprises 68.1 trillion VND (3.8 billion USD) and households 68 trillion VND (3.8 billion USD).


Most of the loans have been made by State-owned commercial banks and central credit unions, together lending 279 trillion VND (15.6 billion USD), while private commercial banks have lent 102.8 trillion VND (5.7 billion USD) and foreign-invested or joint venture banks 20.6 trillion VND (1.2 billion USD).

 Source: VNA

Source: QDND Bookmark & Share

Traffic planning lacks long-term view

In Uncategorized on December 1, 2008 at 3:20 pm


Hanoi (VNA) – Traffic planning should pre-empt socio-economic development and be included in urban planning schemes, according to experts at a symposium held in Hanoi on December 1.

The event was organised by Hanoi University of Transport and Communications (UTC), in cooperation with Germany ’s Darmstadt University of Technology.

The development of traffic systems in Vietnam ’s major cities lack a long-term vision, resulting in problems such as frequent congestion, high rates of road traffic accidents and high levels of pollution, said UTC’s principal Tran Dac Suu.

The current infrastructure and public transport services do not meet the needs of socio-economic development and the uncontrolled proliferation of private vehicles is worsening these problems, Suu commented.

Participants at the symposium suggested that administrators formulate and impose uniform standards for urban planning procedures, and they agreed that the experiences of developed countries in planning traffic schemes would be very useful to Vietnamese urban planners.

Participating experts from Germany and Japan shared their countries’ experiences in traffic planning and administration, as well as the development of their public transport services.-

Australia willing to develop cooperation with Vietnam

In Uncategorized on July 1, 2008 at 4:32 pm

The Government of Australia considers Vietnam as one of its important partners in the region and pledges to develop long-term cooperation with the Southeast Asian nation.

Visiting Australian Minister for Foreign Affairs Stephen Smith made the statement during his talks with Vietnamese Deputy Prime Minister and Foreign Minister Pham Gia Khiem in Hanoi on July 1.

Khiem welcomed Smith’s first visit to Vietnam and spoke highly of the Australian Government’s policy of continuing to promote cooperative ties with Vietnam .

“ Vietnam always attaches great importance to expanding the friendship and multifaceted cooperation with Australia ,” the deputy PM stressed.

In reply, Smith said he was glad to visit Vietnam for the first time since he was appointed as Australian Minister for Foreign Affairs in December 2007.

The two sides expressed their pleasure at the fine developments in the friendship and all-round cooperation when Vietnam and Australia are celebrating the 35th anniversary of diplomatic ties this year.

They noted that since the beginning of the year, the two nations exchanged many high-level visits, including those to Australia by National Assembly Chairman Nguyen Phu Trong, and Deputy PMs Nguyen Thien Nhan and Truong Vinh Trong, and a trip to Vietnam by Queensland State ’s Minister of Transport, Trade, Employment and Industrial Relations John Mickel.

Australia is now Vietnam ’s 7th biggest trade partner and its 4th largest export market, with two-way trade value reaching 4.56 billion USD last year. By the end of May 2008, Australia had invested 1.01 billion USD in 174 projects in Vietnam .

Vietnam is Australia ’s 4th largest aid recipient with a total committed official development assistance (ODA) capital for 2008 totalling 93.1 million AUD, 1.3 million AUD higher than the previous year.

Regarding regional and international issues, Deputy PM Khiem affirmed that Vietnam treasures cooperation between the Association of Southeast Asian Nations (ASEAN) and Australia , as well as within the framework of the East Asia Summit (EAS). Vietnam supports Australia ’s efforts to promote peace, stability and development in Asia and the Pacific, he added.

During the talks, the two sides also discussed measures to speed up negotiations on the ASEAN- Australia – New Zealand Free Trade Area (AANFTA).