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Hanoi’s $7 billion Red River planning enters phase 2

2010-11-04T15:31:00.000-07:00

The Hanoi People’s Committee in coordination with South Korean experts have begun the second phase of a USD7-billion Basic Planning for the Red River Area Development.

Prospective of city by the Red River (section running through Hanoi)

The Hanoi People’s Committee announced that the second phase of planning was underway November 3, adding that the basic planning will be integrated into the Hanoi Master Plan from now to 2030 with a vision until 2050.

Therefore, when the Hanoi Master Plan is approved by the central government, the Basic Planning for Red River Area Development will follow the suit. Then, the latter will be revised in line with zoning plans laid out by the Law on Urban Planning.

The committee said the two sides are trying to collect opinions and proposals for the second phase and completing the planning of the first. Once the basic planning is completed, it will be submitted to the Government and the National Assembly for approval.

Under the basic planning, the first phase is designed to build up a city by the Red River which will house international financial high-rise buildings and riverside parks.

The basic planning will cover 4,200 hectares of land and water surface, stretching 40 km along the Red River running through Hanoi. Up to 39,000 households are expected to have to relocate to serve the plan’s implementation.

The planning is divided into four zones with the first stretching from Chem (the final point of the plan) to Thang Long Bridge; the second from Thang Long Bridge to Chuong Duong Bridge; the third from Chuong Duong Bridge to Thanh Tri Bridge and the fourth from Thanh Tri Bridge to Bat Trang Commune (the starting point of the plan).

Samsung aims to sell 1 mln Galaxy Tabs by year's end

2010-10-25T17:13:00.000-07:00

South Korea's Samsung Electronics launched its tablet computer in the domestic market and said it aims to sell more than a million of the Galaxy Tabs worldwide by the end of this year.

South Korea's Samsung Electronics launched its tablet computer in the domestic market and said it aims to sell more than a million of the Galaxy Tabs worldwide by the end of this year.

J.K. Shin, president of the company's mobile business, on Thursday said the firm plans to offer the Galaxy Tab in various sizes next year as it scrambles to challenge Apple's iPad in the rapidly-growing tablet PC market.

"We have received a very good market response in countries in Southeast Asia and Europe.... I estimate we will be able to sell more than a million units worldwide by the end of this year," Shin told reporters.

The Galaxy Tab has a seven-inch (18-centimetre) touch screen -- smaller than the iPad's nearly 10-inch display -- and will be available for South Korean consumers next week via SK Telecom, the country's largest wireless operator.

"You can literally use it by holding it in one hand or put it into the inside pocket of your suit," Shin said, putting the device into his pocket during a press conference.

The Galaxy Tab will make its debut in Korea before the iPad -- the iPad's sole distributor KT Corp has said it plans to launch the device locally later this month.

Samsung Electronics has already introduced its first tablet computer in countries like Germany and the United States after Apple rolled out its iPad internationally in January.

The Galaxy Tab, powered by Google's Android software and featuring cameras front and back, can make phone and video calls, while the iPad has no camera or built-in phone.

The new device also allows users to access websites based on Adobe System's Flash, unlike Apple, which blocks the widely-used multimedia platform on its devices.

Global computer and handset makers have scurried to respond to the roaring success of Apple's iPhone and iPad.

Tablet PCs feature bigger screens than smartphones and have no keyboards, instead employing touch screens or stylus pens.

The global tablet PC market is expected to expand to 30 million units next year from 13 million this year, according to industry data.

Samsung is also competing with Apple in the smartphone market. It launched its Galaxy S model domestically in June, seven months after Apple's iPhone hit South Korea.

Shin said the company aims to sell over 20 million Galaxy S units globally this year and to double that next year.

Vietnam rice price could reach $500/tonne

2010-10-24T23:29:00.001-07:00

The benchmark price of Vietnamese rice is likely to be stable between $380 and $500 a tonne next year barring unforeseen natural disasters or poor weather, one of the country's top 10 exporters said on Wednesday.

The past three years have witnessed some of the most volatile commodities prices ever, rice included. Vietnamese rice soared to around $1,000 a tonne in May 2008 before slipping to around $350 a tonne in April this year.

Tran Thanh Van, deputy chief executive of the Mekong Delta-based exporter Gentraco Corp, estimated that major buyers had prepared 30 percent to 50 percent of their annual domestic demand, which would remove some of the urgency that exacerbated price movements in recent years.

"Major price movements will no longer be expected in the coming time because of these preparations," Van told Reuters in the river town of Thot Not, one of the Mekong Delta's main logistics points for rice transportation.

The Mekong Delta produces more than half of Vietnam's paddy rice output, expected to reach 39.1 million tonnes this year from 38.9 million tonnes in 2009. Grain from the delta's 12 provinces accounts for 90 percent of the country's total rice export.

Van said benchmark 5 percent broken rice stood at $475 a tonne, while 25 percent broken rice was $445 a tonne, and Gentraco was looking to raise the quotations by $10 a tonne, given low stocks.

The last time the 5-percent broken rice traded at $500 a tonne was during the first week of January 2010.

Vietnam carried over 1.4 million tonnes of milled rice from the previous harvest, but had already begun depleted it, and Van said the country's current stocks were about 1.1 million tonnes.

Gentraco was now holding 30,000 tonnes of rice in stock, or around 10 percent of its annual export target for 2010, Van said. Last year the company shipped 250,000 tonnes of rice.

Stocks are likely to continue to wane despite a minor harvest starting within the next three weeks.

Supply will pick up from late February when Mekong Delta farmers start harvesting the winter-spring rice crop, the country's largest crop mostly used for export.

Paddy output of the crop is expected to remain unchanged at around 10 million tonnes, as farmers stepped up using fertiliser to cope with the impact of low flooding this year, a leading rice industry researcher said on Tuesday.

The Vietnam Food Association, which is in charge of regulating the country's rice exports, has already stopped approving company-to-company contracts with shipment from November onwards.

The association has also tried to support prices by imposing an export price floor and then raising it in October.

Vietnam has secured deals for a record 6.8 million tonnes of rice so fare this year, 6.5 million tonnes of which would be shipped, which would be a record, industry officials said. The country exported 6 million tonnes of the grain last year.

US videogame maker EA in deal with Facebook

2010-10-23T03:51:00.001-07:00

Electronic Arts said Tuesday that it has reached a five-year agreement with Facebook that calls for the social network's virtual currency to be the exclusive payment method for EA games.

A fair goer plays a game by Electronic Arts (EA) at an entertainment fair in 2008.

More than 200 million people play games on Facebook every month and "Pet Society" and "Restaurant City" from EA division Playfish are among the top 10 games on the social network.

The Redwood City, California-based videogame maker bought the London-based Playfish, the largest supplier of Facebook games after Zynga, a year ago for up to 400 million dollars.

EA said the five-year "strategic relationship" with Facebook calls for Facebook Credits to be the sole currency used to purchase virtual goods in EA games.

EA said it will receive the standard 70 percent of the revenue from Facebook Credits with Facebook getting 30 percent.

"Since gaming has emerged as the most popular category of applications on Facebook, the natural next step is for EA to broaden its relationship with Facebook and its 500 million users," EA Interactive senior vice president and general manager Barry Cottle said in a statement.

"We are pleased to enter into this long-term partnership with EA to make it easier for people to purchase virtual goods across some of the most popular games on Facebook," said Dan Rose, vice president of partnerships and platform marketing at Facebook.

"Playfish has a great reputation for building high-quality games on Facebook, and we look forward to working even more closely with them and the larger team at EA," Rose said.

EA also plans to bring Monopoly, Pogo, Scrabble and Boggle to Facebook.

Popular EA videogame titles include "Rock Band," "Madden NFL10" and "The Sims."

EA shares were up 1.20 percent in afternoon trading in New York at 15.99 dollars.

Seminar seeks ways to boost seafood exports

2010-10-21T17:07:00.000-07:00

The Ministry of Agriculture and Rural Development (MARD) on November 2 held a seminar in Ho Chi Minh City on a programme to boost seafood exports to 2015 and achieve even greater export sales by 2020.

MARD Deputy Minister Luong Le Phuong said although the fisheries sector recorded impressive growth, it should identify priority for major staples as well as major fishing areas such as Phu Yen, Khanh Hoa and Binh Dinh central provinces. Tuna, lobster and clam can be key products, he suggested.

He said the country could earn between US$7-8 billion from seafood exports by 2015.

According to MARD, Vietnam plans to maintain seafood export growth between 8-10 percent a year with an export turnover of US$6.5 billion by 2015. The country also plans to win trust and build a strong trademark for the seafood processing industry and expects to earn US$8 billion from exports by 2020.

The ministry also warned that importers would tighten protection measures through trade and technical barriers. Market regulations will focus on not only food safety but also environmental protection, social responsibility and protection of resources.

Vietnamese businesses, therefore, need to review management, speed up modernisation and quality control systems in order to raise competitiveness, the MARD official stressed.

ICT sector strives for 8-10 percent contribution to GDP

2010-10-18T17:34:00.000-07:00

Vietnam is determined to develop its information and communication technology (ICT) sector into one of the strongest in Asia, aiming for an annual revenue that will account for 8-10 percent of the country’s GDP.

Deputy Minister of Information and Communications, Nguyen Minh Hong, gave speech at the conference.

An international ICT conference was held in Hanoi on November 2 by the Ministry of Information and Communications, attracting more than 100 international delegates from 20 countries.

In his speech, Deputy Minister of Information and Communications, Nguyen Minh Hong, praised foreign scientists and speakers for participating in the conference which will give them a chance to share their experience in developing ICT.

By 2020, Vietnam hopes to include a world-class system in its ICT sector. To reach that goal, the country is upgrading its telecommunication infrastructure, and developing the ICT market along with high-quality human resources to meet the demands for international integration, Mr Hong said.

Professor John Vig, President of the Institute of Electrical and Electronics Engineers, Inc. (IEEE) spoke highly of Vietnam’s efforts to rapidly develop ICT, which has brought the country into the list of the top 20 countries in the world with the fastest ICT development.

However, the quality of the ICT sector in Vietnam is still failing to keep pace with global development due to the lack of high-quality human resources and a low competitive capacity, said Prof. Vig.

He said he hoped that, through the conference, delegates from countries with strongly developed ICT like the US, the UK, France and Germany would share their experience to help Vietnam to accelerate its ICT development.

Minister addresses power supply, steel planning and trade deficit

2010-10-17T15:52:00.000-07:00

Minister of Industry and Trade, Vu Huy Hoang, delivered a report on three of Vietnam’s most pressing issues.

Steel supply remains stable

The issues include power supply, steel planning and trade deficit, all presented before the National Assembly November 1.

Power supply problems attributed to capital shortage

The minister acknowledged that the Ministry of Industry and Trade (MoIT) is partially responsible for power shortages.

Hoang said, “If the ministry closely monitors the implementation of the national power development plan from 2006-2010 and a vision until 2015, or Plan VI, the lack of power will not happen.”

He added that scenarios and estimates of power consumption in plan VI are still reasonable now. It is calculated that Vietnamese power demand will increase by 16%-17% per year from 2006 to 2015 compared to 15%-16% between 2007 and 2010, with 15%-17% projected this year.

The insufficient power supply is a result of many things. These include a shortage of funds which has led to slow construction of many projects. The government has asked PetroVietnam Oil and Gas Group (PetroVietnam), Electricity of Vietnam Group (EVN) and Vietnam National Coal Mineral Industries Group (Vinacomin) to join in providing power supply.

To improve the situation, the government has urged a faster construction pace of power projects in Plan VI and the Plan VII (the national power development plant from 2010 to 2020 and a vision until 2030) as well as put into official operation the Haiphong Thermal Power Plant and Quang Ninh Thermal Power Plant which have still been on trial runs.

Minister Hoang also noted that the MoIT will submit a plan to restructure the power sector to the government from now to year’s end, focusing on EVN. The governmentt is also building power supply plans to ensure demand for production during the 2011- 2012 period.

“We are instructing that EVN cooperate with ministries, agencies and localities to deal with wasteful industrial projects and using backward technology, including steel projects. We will send a report on this to the government later this year,” Hoang shared.

Only planned steel projects to be carried out

The minister also said that the unplanned steel projects are mainly found at poor localities which expect these projects to facilitate its industrial development.

The MoIT will tighten control over steel investment, in which, only planned projects are carried out. Meanwhile, projects which are energy-intensive and use backward technology will be suspended or cancelled, Hoang said. The steel plan will focus on the production of steel and limit end-products because the nation is now in need of steel, not the finished products, according to Hoang.

Narrowing the trade gap

The minister’s report indicated that trade deficit in Vietnam has remained high. However, the country has made remarkable progress in narrowing the trade gap. This year, the national trade deficit is estimated to be USD12 billion based on trade figures of the first ten months, lower than the figure of USD13.5 billion given in September.

Vietnam’s trade gap was estimated to be USD12.8 billion in 2009, USD18 billion in 2008 and USD14 billion in 2007.

According to the report, the rate between trade gap and export revenues has decreased with at about 18% in 2010, against 22.5% in 2009, 28.8% in 2008 and roughly 30% in 2007.

“We need a long time to curb the trade deficit, particularly when the country pours big investments into economic development. For instance, building a 1,200-MW power plant worth USD2 billion is equal to exporting 6 million tonnes of rice per year,” Hoang highlighted.

Vietnamese products make a foray in rural market

2010-10-16T12:37:00.000-07:00

The announcement of a Vietnamese product distribution map in Tra Vinh is seen as a drastic change in plans by businesses producing high quality Vietnamese products to corner the rural market.

After finalising the first phase of 50 trade fairs to promote high-quality Vietnamese products in rural areas, the Business Support Analyst (BSA) Centre in HCM City has worked together with local agencies to implement the second phase by drawing a distribution map for Vietnamese products.

The BSA and the High-Quality Vietnamese Product Business Association held a fair to bring Vietnamese products to rural areas in Cang Long district, Tra Vinh province from October 15-17.

This fair was first launched by the BSA in each locality to gain accurate market information, then the BSA collaborated with the provincial Department of Industry and Trade and the Industrial Promotion Centre to survey the actual market situation of 250 retail outlets and agents in eight provincial administrative units. It also surveyed 410 local people in Tra Vinh City and the three districts of Tra Cu, Chau Thanh and Duyen Hai as well as 500 people from rural households in Tra Vinh province.

All data collected from the survey was analysed by market experts to draw a distribution map to bring quality Vietnamese goods to rural areas in Cang Long.

A Vietnamese product festival was held recently in Cang Long district with a variety of activities and progarmmes to present gifts to the poor, train small traders in sales skills, guide farmers on the proper use of fertiliser and provide free medical treatment and for local people.

On the occasion, the BSA officially announced the product distribution map in Tra Vinh as a useful tool for businesses and managers.

The survey results show that only 15 percent of people always buy Vietnamese products while 24 percent never do and 61 percent buy them occasionally. Many people say they like to buy quality products at reasonable prices. 34 percent of consumers like Vietnamese products because of the prices and 24 percent think that they are high quality, while 50 percent prefer imported products because of high quality and 10 percent buy them out of habit.

BSA director Vu Kim Hanh said that the distribution map for Vietnamese products makes it possible for Vietnamese consumers to have a free choice of goods on sale.

It is based on the results of research about retailers, origins of imported products, favourite Vietnamese products, supply of Vietnamese and imported goods, and information about distribution networks, inflows of products, storage systems, evaluations of specific markets and advice for businesses hoping to penetrate the markets.

Supporting businesses to expand markets

“Bringing Vietnamese products to rural areas” and creating “a product distribution map in Tra Vinh” are important parts of the plan for Vietnamese companies being afoot to conquer the rural market. The project aims to provide essential information and advice for businesses to develop solid network and help them learn about how to distribute Vietnamese products properly in different localities, Ms Hanh said.

She added that the important goal of bringing Vietnamese products to rural areas is to approach rural consumers, not just sell products. Businesses need to know rural consumer taste and purchasing power in order to improve quality of products and services and maintain a foothold in the rural markets. This is the most effective way that’s worth a try.

The map is just 1/63 of a national map of the distribution of high quality Vietnamese products. It cannot represent all domestic products, production and trading. The State should create an overall distribution map of Vietnamese products as a standard tool for economic growth.

Ho Chi Minh City's southwestern real estate buzz

2010-10-14T10:21:00.000-07:00

The real estate market in southwestern Ho Chi Minh City is warming up thanks to cheap prices and expected transportation convenience.

Land area around the East-West Boulevard is attracting more real estate investors

Land prices in the area are said to be much cheaper than those in other parts of the city. Houses and apartments are attracting middle-income people.

Moreover, individuals and companies in the area are expected to find it easy to go to the city centre or have trade with northern provinces of the country when the East-West Boulevard is finished. The boulevard, about 22-kilometres long, is scheduled to be completed next year.

These factors have made real estate trading in the southwest part of Ho Chi Minh City more active than other parts of the city. Apartments in the area have quickly sold after they are put on the market.

Last week, more than 100 apartments of the Van Hung Phat High-class Apartment project in District 8 were sold during initial offerings. The project owner said it would have the second offering by the end of this year to meet the demand of customers.

Meanwhile, the owner of the Happy Plaza project (in Binh Chanh District) said they began offering in September and just two weeks after, the number of clients who registered to buy apartments had surpassed the number of their apartments.

The reports on Vietnam’s real estate market in the third quarter by CBRE Vietnam and Savills Vietnam shared a common view that real estate trading in the southwest part of Ho Chi Minh City would be the most active compared with other parts of the city.

November brings gas prices up

2010-10-13T19:45:00.000-07:00

November is expected to see a price rise in gas that is the highest in 2010.

Gas price has increased four consecutive times since mid-August.

Vietnamese gas traders said that retail gas price will be raised by VND25,000 (USD1.28) per 12-kg canister beginning November 1.

Do Trung Thanh, deputy head of Saigon Petrol’s Marketing Department, said gas price of his firm will increase by VND2.083 (USD0.11)/kg against the current level. Accordingly, price of each 12-kg cylinder will be increased by VND25,000, including value added tax, to between VND272,000 (USD19.94) and VND297,000 (USD15.23).

The domestic price hike is attributed to gas prices in the world market for November delivery which has increased by USD92.5/tonne to USD785/tonne. In July, gas prices at Saigon Petrol were just VND240,000 (USD12.3)/12kg cylinder.

Many other petrol suppliers such as Gia Dinh, Vinagas and Hong Ha also said that they will increase gas prices in line with world trends.

In early October, gas prices in Vietnam were raised by VND14,000 (USD0.71) per 12-kg canister.

Since mid-August, customers have witnessed four consecutive gas price increases with a total raised value of VND60,000 (USD3.07)/12-kg cylinder.

Hanoi launches promotion month

2010-10-12T19:17:00.000-07:00

More than 1,100 special displays of products from 300 businesses, commercial centres, supermarkets and shops will be set up in various venues around the city for promotion month in Hanoi from November 1-30.

Speaking at the opening ceremony for the promotion on October 30, a representative of the capital city’s leaders said that this will be a good occasion for international and national consumers to enjoy many good promotional programmes and buy quality products at reasonable prices.

22 golden stands from 17 businesses will offer major discounts of 20-50 percent on November 13-14 and a golden exhibition of promotional goods will be held at the International Exhibition Centre on November 18-21, featuring more than 130 booths from more than 70 enterprises.

Businesses participating in the promotional month must discount the prices of at least 30 percent of their products of more than 15 percent.

High-end apartments in HCMC plagued with low-end problems

2010-10-11T15:03:00.000-07:00

Some apartments in Ho Chi Minh City are in the billions of VND to buy but many wind up disappointed when the quality is proven to be poor.

Disappointment to live in “high-end” apartments

More than 200 households in Hoang Anh Gia Lai 3 apartment block on Nguyen Huu Tho Street, Nha Be District, Ho Chi Minh City, have recently denounced the investor, Hoang Anh Housing Development and Construction Company, for the bad quality apartments.

The apartment prime price is VND15 million (USD769.23) per square metre and has even climbed up to VND30 million (USD1,538) per square metre. However, only one year after living in these apartments, residents have felt panic due to their quick degradation.

Many owners said walls in their houses have become mouldy and cracks are found on the floor. The plywood has become bloated, making the doors unworkable. Although the affected families have brought up the situation with the investor numerous times, they have not yet received any feedback.

Pham Thi Kim Anh in District 7, Ho Chi Minh City, said in June 2009, she bought a 145-square metre apartment worth VND3.8 billion (USD194,871) compared to the base price of just over VND1 billion (USD51,334).

Just two months later, the main bedroom of her apartment started leaking, resulting in a water spill inside the room. She has hired construction workers to repair the room several times, but the leakage has become worse. Meanwhile, the investor of the apartment was unwilling to repair the problem.

After numerous complaints from residents, representatives from Hoang Anh Housing Development and Construction Company have affirmed its mistakes and promised to address them.

Saigon Pearl luxury apartment block in Binh Thanh Distirct, Ho Chi Minh City, is also in the same situation. Local residents said apartments often face power losses, except for elevators and corridors.

Meanwhile, apartment investors themselves stipulate many fees and hand over apartments late to owners. Additionally, interior decoration of many apartments do not follow contracts and a lack of parking space is still an issue in many apartment blocks.

FPT to be partners with EVN Telecom

2010-10-09T11:37:00.000-07:00

The Corporation for Financing and Promoting Technology (FPT) and its subsidiary FPT Telecom will become strategic partners of EVN Telecom.

A source from EVN Telecom confirmed the agreement with Viet Nam News yesterday, saying these two companies would hold more than 50 per cent stake in EVN Telecom after it equitised.

This acquisition followed the Government's approval of EVN Telecom selling stakes to domestic strategic partners, and these companies would work much before making the acquisition in practice, the source said.

A media source said the FPT Corporation would invest about VND400 billion (US$20.5 million) into EVN Telecom.

Phan Duc Trung, FPT's deputy director, told dautu.vn that the corporation would spend more than VND400 billion because the partnership with EVN Telecom would help FPT develop a new business angle in the mobile telecom sector.

EVN Telecom is an Electricity of Viet Nam subsidiary. The company became operational in 2006 and is the seventh largest mobile telecom provider nationwide.

Dairy industry held captive by import reliance

2010-10-07T18:42:00.000-07:00

Vietnam’s dairy market is dominated by imported products. The development of dairy farming in the country has been slow and lags behind consumption growth, an official said.

Vietnam’s dairy market is dominated by imported products.

The situation of having both raw materials and finished products provided by international suppliers makes it difficult to control prices of dairy products in the domestic market, experts say.

Do Kim Tuyen, head of the Ministry of Agriculture and Rural Development’s Plan and Finance Division, told Thanh Nien Weekly that Vietnamese dairy producers had been trying to gain a larger part of the pie for many years, but had only managed the current 20 percent.

Tuyen said it was difficult for Vietnamese producers to find suppliers of raw materials in the country after investing in increased capacity to meet growing demand.

The development of dairy farming in the country has been slow and lags behind consumption growth, he said.

Raf Somers, chief technical advisor of the Vietnam Belgium Dairy Project, said the retail price of liquid milk in Vietnam was the top of the world with the highest at US$1.4 per liter last year. The 2.8-million euro project, financed by the Belgian government, aimed to improve dairy farming in Vietnam. It ended in February.

About 115,000 cows were raised in Vietnam last year, yielding 280,000 tons of milk in a country with a population of 86 million people. Tuyen compared this with the Netherlands, which has a population of more than 16 million people, raising five million cows.

Vietnam’s per capita milk consumption is estimated at 15 kilograms compared to the Asian average of 35 kilograms, according to the ministry. The United Nation’s Food Agriculture Organization says that globally, the annual consumption of milk is around 102.6 kilograms per person.

This shows the very high potential for dairy producers in Vietnam, said Jan Bles, managing director of FrieslandCampina Vietnam.

Bles said the market was growing but it was not easy for dairy firms to increase their capacity if they depended only on local suppliers for raw materials.

He said the firm has to supply its factories with 75 percent of imported materials. What the firm worried most about was the quality of milk that it collected directly from Vietnamese farms, which are mainly small-sized, not using advanced, more hygienic farming techniques, he said.

30-40 percent

FrieslandCampina, formerly known as Dutch Lady in Vietnam, is the first foreign investor in the country’s dairy industry in the last 15 years. It has invested $125 million in two factories in Ha Nam and Binh Duong provinces in the north and south of the country respectively.

Bles said Vietnam needs big farms to raise cows on a large scale and produce a stable volume of milk to supply processing factories.

But the country lacked large areas of grass to feed cattle, said Tuyen, adding dairy farming was underdeveloped in Vietnam where little machinery was used in raising and milking cows.

He said the country’s dairy industry aimed to increase capacity to meet 30 to 40 percent of domestic demand for raw materials by 2020. For this, 500,000 cows would be needed to produce more than a million tons of milk.

Nguyen Phuoc Trung, deputy director of Ho Chi Minh City’s Agriculture and Rural Development Department, said the municipality would develop high tech agricultural areas for dairy farming in Cu Chi and Hoc Mon districts with support from the Israeli government.

The city targets high quality, not quantity, in the dairy industry, said Trung. The plan is to reduce the herd to 75,000 cows in 2020 and 70,000 cows in 2025 from the current 78,000, he added.

Meanwhile, local firm TH Milk is set to become the country’s biggest dairy farm, raising 9,000 cows in the central province of Nghe An. The cows were imported from New Zealand. The $148 million firm has said it would increase its herd to 10,000 cows by the end of this year and 40,000 cows in another couple of years.

Vinamilk, the country’s largest dairy producer, has also imported 350 cows from Australia to its farm in the same province, increasing its herd to 1,200.

Last month, FrieslandCampina announced a $10 million expansion in its factory in Binh Duong Province, and that it is also considering an investment in the central region.

All this is happening even as the government tightens control over production and trading in dairy products.

The Vietnam Chamber of Commerce and Industry was quoted by a local newspaper as saying dairy companies have hiked their prices by 3 to 10 percent every two to three months this year.

The government has asked businesses trading in children’s formula to register their sales prices with authorities starting this month.

The Ministry of Finance has named 150 companies that must register their prices with the authorities, including major foreign-owned dairy firms like FrieslandCampina, Nestlé, Mead Johnson, Meiji and 3A Pharma, the official distributor of Abbott brand products in Vietnam.

The General Statistics Office said the country imported $551 million worth of milk and milk products in the first nine months of this year, up 49.2 percent from the same period last year.

Vietnam’s IT market needs a new breakthrough

2010-10-06T18:31:00.000-07:00

Although the information technology market in Vietnam is developing rapidly, it has not made any major breakthroughs and few domestic consumers want to choose Vietnamese brand names.

Pham Thien Nghe, Deputy Chairman of the Vietnam Electronic Industries Association (VEIA) says that some Vietnamese IT businesses have not paid enough attention to creating their own individual trademarks. In addition, Vietnam’s IT products now have to compete with foreign ones in terms of price and quality.

In fact, IT products such as lap tops with Vietnamese trademarks such as FPT Elead, V-Open, CMS are built with almost all the components imported from abroad and assembled in Vietnam. In terms of quality, Vietnamese products are just as good as any product from Taiwan. However, in terms of price, on average Vietnamese computers are VND1 million cheaper.

Mr Nghe says that the difference in due to import taxes. Some components were removed from the import list this year. However, computer assembly plants have to pay for the difference in import tax between “components, electronics components, and a set of computer”.

For example, due to the globalization of computer manufacturing, almost all major computer producers have branches in China and can receive a certificate of origin (C/O form E) to enjoy a preferential import tax of zero percent under the ASEAN-China Free Trade Area (ACFTA). While Vietnam’s computer manufacturers have to pay an import tax of 3 percent for computer components. This means that the import tax for ready built computer is lower compared to the components.

In addition, Mr Nghe says that Vietnamese products have not produced popular designs and solutions for applications. He added that Vietnam’s IT businesses should not only pay attention to manufacturing but also to distribution networks and services.

It is necessary to invest in developing new designs, solutions for applications and building up trademarks. Taiwan’s IT industry has developed strongly and has been a major global IT market for several years thanks to these investments. For example, from a sector with simple production process, Taiwan’s IT sector has become a global industry which specializes in providing services and materials as well as conducting Research and Development (R & D) with the world’s leading IT brand names.

Ngo Van Vi, General Director of the Tan Binh Electronics Joint Stock Company says that almost all Vietnamese businesses have not paid enough attention to domestic policies or invested in supporting industries and R & D. Therefore, it is essential to develop R&D to establish Vietnamese trademarks. Mr Nghe suggested that the State pour investment into the Vietnam Institute of Software and Digital Content Industry (NISCI) for R & D to support businesses.

In addition, to help domestic businesses improve their competitive edge, the VEIA proposed 5 percent VAT imposed on domestic electronic products and 10 percent on imported computers. This would help domestic products in the home market.

Foreign banks gearing up to expand retail banking services

2010-10-05T17:31:00.000-07:00

Foreign banks, which up until now only focused on wholesale services and mostly served foreign clients, have been trying to expand their market share by providing retail banking services.

One of the commitments Vietnam made when it officially joined the World Trade Organisation (WTO), is that from January 1, 2011, it will allow foreign banks to operate like domestic banks, i.e. that foreign banks will have the right to provide the banking services which domestic have the right to. This means that from 2011, foreign banks and domestic banks will operate on a levelled playfield.

Representatives from foreign banks all have expressed their satisfaction about the business environment in Vietnam, saying that the banks are gearing up to expand retail services. This also means that the market shares being held by domestic banks have been threatened by foreign banks.

In mid October, Citibank officially launched the retail banking service in Hanoi. Some days ago, Standard Chartered Bank also made a similar move. In late September 2010, the Hong Kong and Shanghai Banking Corporation (HSBC) opened its fifth branch in Vietnam.

The fact that foreign banks continuously open new branches and transaction offices in Vietnam shows that the banks keep optimistic about the business environment in Vietnam.

Brett Krause, General Director of Citibank Vietnam, said the competition among banks will benefit customers. Ashok Sud, General Director of Standard Chartered Bank has also expressed his satisfaction about a levelled play field for both foreign and domestic banks. “We are glad that our basic expectations have been realized. Now we have the right to provide all the banking products and services we want to,” he said.

Anticipating the stiff competition to be triggered by the market opening as of January 1, 2011, foreign banks are rushing to scramble for the retail market share. Mr Ashok Sud said Standard Chartered Bank is planning to expand its presence in Vietnam both in width and in depth. According to the bank, by 2015-2016, the average income per capita is estimated to reach $2000 per annum, which will lead to the higher proportion of people using banking services.

The current story that only 10 percent of Vietnamese population uses banking services will not be heard of after five or 10 more years. At present, every Vietnamese person has not only one, but two or three mobile phone numbers. And the same scenario will also happen with banking services in the near future, according to Mr Ashok Sud.

Currently, domestic banks are still holding 90 percent of the retail market share in Vietnam. However, foreign banks would be their fierce competitors as they are trying to provide services with high technologies which domestic banks do not have. Standard Chartered Bank, for example, has the branches which operate in non-office hours and on weekend. The bank will also be the first foreign bank which joins the card alliance Smartlink from January 2011.

Meanwhile, Citimart has been targeting young and dynamic clients, who love high technologies, by providing retail banking services through Internet and mobile phones. Especially, though foreign banks do not hold big market share, they have obtained the most lucrative market segment: their clients are mainly VIPs, high income earners (who have the monthly income of 10 million dong and higher).

While foreign banks are racing against the time to expand their business scale, it seems that domestic banks still keep indifferent to the race. A finance expert has warned that some kinds of services which are being provided by domestic banks such as international payment, project funding may fall into the hands of foreign banks in the future, because foreign banks have high technologies, good corporate governance and better financial capability.

The expert said that the biggest banks in Vietnam now focus on serving state owned enterprises, while private and foreign invested enterprises find it hard to access bank capital. Most of joint ventures and 100 percent foreign invested enterprises are still the clients of foreign banks.

ASEAN Economic Community opens its session

2010-10-04T17:25:00.000-07:00

ASEAN Economic Ministers attended the session of the ASEAN Economic Community on October 28 to discuss important documents to promote the building of the community by 2015.

Ministers agreed to implement commitments under the ASEAN Free Trade Area including customs mechanism, administrative reforms and a certificate of origin and transport standard.

Concluding the session, ministers signed two important documents including the Protocol to implement the 8th Package of services commitment under the ASEAN Framework Agreement on Trade in Services (AFAS) and the amended Protocol to Provide Special Consideration for Rice and Sugar.

The 8th Package of services commitment under the ASEAN Framework Agreement on Trade in Services devised a liberalization roadmap for 15 new industries with the foreign-invested capital making a maximum rate of 70 percent for four priority service sectors within ASEAN (including health, tourism, e-ASEAN, air cargo and approach service) and minimum rate of 51 percent for other services.

The signing of the protocol affirmed ASEAN’s determination to liberalise services within the bloc by abolishing almost all hindrances of services, and cooperating to fully tap the strength of businesses within ASEAN as well as improving the competitive edge of ASEAN service providers.

Negotiations to open service market within ASEAN bloc were conducted by ASEAN nations based on the AFAS signed in 1995 and the amended AFAS signed in 2003. Under the goals set out in the overall plan on building the ASEAN Economic Community, ASEAN nations will conduct negotiations on 11 packages of services commitments until 2015. For each package, the countries will sign a protocol to implement it and build its own fact sheet to meet the requirements set for the package.

The signing of the protocol to complete the 8th Package of Services Commitment under the AFAS is a significant step in the liberisation of the service sector inside ASEAN. It is expected to contribute to the building of an ASEAN Community.

The Protocol to Provide Special Consideration for Rice and Sugar was first signed in 2007 in the framework of the Common Effective Preferential Tariff (CEPT) for the ASEAN Free Trade Area. At the 14th ASEAN Summit in Thailand in 2009, the ASEAN Trade in Goods Agreement (ATIGA) was adopted to replace the CEPT/AFTA and other related agreements.

The amended Protocol to Provide Special Consideration for Rice and Sugar is expected to help ASEAN countries to deal with issues related to procedural and technical issues when applying the ATIGA.

Vietnam debt forecast: 57.1% of GDP in 2011

2010-10-03T18:44:00.000-07:00

Vietnam’s public debt is predicted to equal 57.1% of the GDP by late 2011, according to a report from the National Assembly Finance and Budget Committee.

Two different opinions of Vietnam’s public debt (Illustrative photo)

The report given at a recent meeting of the on-going 8th session of the 12th National Assembly showed that Vietnam’s budget deficit is likely to be at VND125.1 trillion (USD6.41 billion), equal to 5.5% of the national GDP, by the end of next year.

The Southeast Asian nation’s government debt is projected to account for 45.3% of the GDP and the national debt is forecast to hold 42.8% of the GDP by that time.

The National Assembly's Finance and Budget Committee said that the public debt level of 57.1% is still safe, explaining that positive forecasts on Vietnam’s economic growth and budget collection will help the country afford debt payment. Additionally, the majority of the nation’s public debt is in long-term loans.

Earlier, some economists said that the if public debt does not surpass 60% of the GDP, the numbers remain safe.

The committee also emphasised that it is important to enhance investment efficiency to maintain debt index in a safe level.

However, Deputy Dr. Cao Sy Khiem said, “The public debt making up 41%, 42% and 46% of the GDP is acceptable, but the nation should be cautious of 57.1%.”

Khiem noted that the government should stabilise and balance macroeconomic factors such as those related to trade gap and budget expenditure to keep public debt safe.

Ministries at odds over tax reduction for trucks

2010-10-02T13:34:00.000-07:00

The tentative scheme to lower import tariffs on trucks has made a rift between the Ministry of Industry and Trade and the Ministry of Finance, with the former saying the time has not come while the latter upholding the view.

Trucks imported from Hong Kong, photo by VnEconomy

The Ministry of Finance has earlier disseminated a draft for feedback, suggesting sharp tax reduction for trucks of different categories. The draft was sent to the Vietnam Association of Automobile Manufactures and the ministries of Industry and Trade, Planning and Investment, and Transport.

According to the plan, tariffs would be cut from 80% to 30% for 5-tons trucks, from 55% to 25% for 5- to 10-ton trucks, from 30% to 25% for 10- to 20-ton trucks and from 15% to 8% for 20- to 45-ton trucks.

The Finance Ministry reasoned that a truck is a corporate vehicle for transport, and the current tax applied for a 10-ton van is too high. Meanwhile, this kind of vehicle is mostly assembled domestically, not manufactured, with main parts being imported.

Even with the tax adjustment, the difference is still 10 to 15 percentage points compared with tariffs on components and accessories, so the lower tax rates should not adversely affect local manufacturing, according to the ministry.

But the Ministry of Industry and Trade bluntly rejected the plan.

In a newly-issued document, the Ministry of Industry and Trade said such a tax-reduction scheme was earlier than commitments Vietnam made with the World Trade Organization.

According to this ministry, the import tax on an under-five-ton van in 2011 should be 70% while it should be 50% for a 5- to 10-ton truck and 30% for a 10- to 20-ton truck. Any further adjustments later will be considered depending on local manufacturing and market conditions, the ministry said.

The Ministry of Industry and Trade suggested the Finance Ministry cut the tariffs from 80% to 70% for 5-ton trucks, from 55% to 50% for 5- to 10-ton trucks, and continue the current rate of 30% for 10- to 20-ton trucks. These rates should be applied from the end of 2011 and reviewed and adjusted from 2012 based on the development of the domestic market as well as the capacity of local companies.

In the same chorus, local auto manufacturers and experts said the plan to reduce import taxes on trucks proposed by the Ministry of Finance could harm the domestic automobile industry.

Tran Ba Duong, general director of Truong Hai Auto Joint Stock Corporation, said the proposed tax cut would be too hasty and far earlier than the deadline of 2018, as provided for in the nation’s commitments to the World Trade Organization. Duong added that enterprises would not be able to make timely plans to deal with the impacts of a tax reduction scheme of such an extent.

Besides three factories for assembling trucks, buses and passenger cars and five factories for manufacturing auto components, Truong Hai is inviting foreign and local investors to invest into Vietnam’s auto industry.

Meanwhile, Bui Ngoc Huyen, general director of the Xuan Kien Automobile Joint Stock Company, or Vinaxuki, told local media that the proposed low tariffs, to be implemented without giving time for preparations, would not help develop the domestic auto industry, and might lead to the shutdown of factories.

His company began assembling autos in 2004 and had since poured VND1 trillion into production, said Huyen. The company expects its autos to be made with 50% locally produced parts by 2012.

“The company’s localization rate for assembled trucks will also rise from 15% to 50%,” he said. “But the proposal to cut import tax for trucks would have a negative impact on our investment in production of truck components as well as adversely affect the auto industry’s development strategy.”

Seminar to support small- and medium-sized businesses

2010-10-01T17:31:00.000-07:00

A seminar on measures to help small- and medium-sized businesses (SMBs) was held in the central city of Da Nang on October 26 by the Department for Business Development under the Ministry of Planning and Investment and the Vietnam Association of Corporate Directors.

Reports presented at the event focused on effective measures to support SMBs and programmes to help them with business management and planning.

The seminars also aimed to help SMBs access credit loans and financial assistance, improve their competitiveness, and overcome difficulties related to production premises and administrative procedures.

Vietnam now has over 500,000 businesses, 97 percent of which are SMBs which contribute about 40 percent of the country’s GDP and ensure jobs for 50 percent of the workers, said Nguyen Thi Bich Thuy from the Department for Business Development.

Capital shortages, backward technologies, and poor management are now the biggest problems facing most SMBs, Thuy said, adding that administrators should help them with staff training, human resource development, capacity building, and market expansion.

Nguyen Ngoc Bach, Deputy Secretary General of the Vietnam Association of Corporate Directors, said SMBs themselves should improve their technical capacity to make highly-competitive products, participate in supplying public services, and work closely with local authorities to stay informed about the market.

Dollar dearth dampens Vietnamese dong

2010-09-30T15:17:00.000-07:00

Due to concerns about a possible year-end dollar drought, and rumors about expanding the exchange rate between the Vietnamese dong the dollar, the unofficial exchange rate rose sharply this week.

Meanwhile, firms find it hard to buy dollars at prices fixed by the State Bank of Vietnam.

The dollar rose as high as VND20,020 at gold shops in Hanoi on Wednesday, compared to 19,900-19,980 on Monday. Meanwhile, commercial banks were selling dollars at 19,400- 19,500.

Economist Ngo Tri Long, former deputy head of the Market and Price Research Institute, gold prices have affected the exchange rate. “With the high price of gold, some people have accumulated dollars to smuggle gold, and then resell it on the domestic market at a profit,” Long said.

The domestic price of gold rose to VND33.09 million per tael on Thursday morning, compared to VND32.97 million on Wednesday, according to SJC, the country’s top gold trader.

The dollar price also increased as businesses scrambled to accumulate dollars to repay greenback loans taken out early in the year. Importers need dollars to serve production and business, which often jumps at the end of the year.

Meanwhile, exporters who are paid in dollars by foreign partners have only agreed to sell them to banks at high prices, or keep them in deposit.

Nguyen Manh, director of the business department at Bank for Investment and Development of Vietnam, said people are accumulating dollars due to worries about another devaluation of the dong.

The State Bank of Vietnam’s reference rate at 18,932 has not changed since the dong was devalued by 2 percent in August. The currency may fluctuate up to 3 percent on either side of the rate, which means it can be traded as low as 19,500 per dollar.

Many firms said it is difficult for them to buy dollars at commercial banks, and some reported having to pay additional fees. As a result, the actual market price is often higher than the official reference rate.

Dao Duy Kha, vice general director of the Vietnam Plastics Corporation, said: “Firms have to queue up for dollars at commercial banks to cover imports. Banks were offering dollars at the official rates but requesting additional fees from buyers, bringing the actual rate to as approximately high as unofficial market prices.”

His firm’s exports are small, so its greenback earnings are not enough to cover import materials, Kha said.

The central bank governor Nguyen Van Giau said the central bank has no plans to adjust the dong exchange rate against the US dollar, even though the dong’s value has been dropping on the unofficial market.

Jayant Menon, an economist from the Asian Development Bank, said Vietnam is running a trade deficit so implementing some sort of controlled depreciation of the currency to improve competitiveness is not a bad idea. However, Menon said that erratic drops in the value of the dong, caused by lack of confidence, pose a cause for concern.

“In the current context of consumer price hikes, widening exchange rates (between the dong and dollar) could push up inflation,” said economist Long. “The country should be very careful in considering devaluation at this point,” he said.

Fractious G20 set to confront trade imbalances

2010-09-29T18:31:00.000-07:00

The United States looked set to win G20 backing Saturday to tackle groaning trade imbalances as the world's biggest industrial nations vowed to avoid tit-for-tat currency devaluations.

US Federal Reserve Chairman Ben Bernanke attends the G20 Finance Ministers and Central Bank Governors meeting in Gyeongju on October 22, 2010.

But after all-night talks among senior officials in South Korea, amid fears of a global "currency war", a draft G20 text reported by Dow Jones Newswires did not set specific targets on trade for the United States, China and others.

In the draft statement, Group of 20 finance ministers would agree to refrain from "competitive" currency devaluations, and aim for "market-determined exchange rates", an official told Dow Jones.

The G20 would commit to "pursue a full range of policies conducive to reducing excessive imbalances" and "maintaining current-account imbalances at sustainable levels", according to the reported statement.

The International Monetary Fund would win greater power to oversee G20 commitments, through reports that investigate how a country's economic policies can damage major trading partners.

The draft had won widespread backing from advanced economies, while Chinese officials "left the room comfortable enough" with the language, the official told Dow Jones as the ministers prepared to end their meeting Saturday evening.

Two years after the start of the world's worst financial crisis since the 1930s, fears are mounting that major debtors such as the United States and big exporters such as China could relapse into crippling trade protectionism.

South Korean Finance Minister Yoon Jeung-Hyun had urged his G20 guests to exploit their collective heft on currency disputes, IMF reform and ensuring mega-banks can no longer imperil the world economy.

History demanded that the group build "a new post-crisis international economic order", he told the meeting Friday, looking ahead to a November 11-12 summit in Seoul of G20 leaders including the US and Chinese presidents.

At the weekend talks, US Treasury Secretary Timothy Geithner urged nations running big current-account surpluses to change their exchange-rate policies. He did not name the nations but China seemed the clear target.

He suggested that countries should aim to reduce surpluses or deficits to a targeted share of gross domestic product in the coming years. Officials said Geithner's target would be four percent of GDP by 2015.

China's current account surplus stood at 4.9 percent of GDP in the first half, and targeting the surplus would be an indirect way for Washington to cajole Beijing into letting its currency appreciate.

But other major exporters such as Germany would also be affected by the Geithner plan, and are already unhappy at being asked to remedy failings in the global financial system that were exposed by a US-generated crisis.

The draft text reportedly made no mention of numerical targets for the current account, which Japanese Finance Minister Yoshihiko Noda had said were "not realistic".

The US suggestion for binding targets ran into broad opposition at the G20, delegates said, with Australian Treasurer Wayne Swan expressing wariness about a "one-size-fits-all" approach.

Germany insisted that its own current account surplus would be treated as part of the European Union's overall balance, and not separately, a source said.

But the G20, which rose to summit-level prominence during the 2008-09 crisis, was under pressure from the financial markets not to leave South Korea empty-handed ahead of the leaders' meeting in three weeks.

With a super-loose US monetary policy weakening the dollar, G20 economies including Japan, South Korea, Brazil and Indonesia have intervened in recent weeks to curb an alarming rise in their currencies.

But for the United States, which is in the throes of election season, China's firm grip on the yuan's value is the root of the problem. Critics say that policy gives China's export machine an unfair edge.

"I think there's a recognition that this currency issue has to be addressed," Canadian Finance Minister Jim Flaherty said Friday.

"If it's not, then we know from history the path that we end up going down, which is not good for any of us," he said.

Cement firms advised to downgrade coal

2010-09-28T15:34:00.000-07:00

Cement plants should change their technology to use coals which are more available in Vietnam, advised an official from Vinacomin.

Vietnam’s coal output remains low to meet domestic demand

General Deputy Director of Vinacomin (Vietnam National Coal - Mineral industries Group) Nguyen Manh Hung said that currently, cement producers in Vietnam use high-quality coal dust which accounts for just 15% and 16% of the total coal output of Vinacomin.

He feels that cement plants should replace the current grade-3 coal dust with the lower-grade of 4b or 5.

“If Vinacomin’s coal output is less than 43 million this year, it may fail to provide 6.2 tonnes of coal for the Vietnam Cement Industry Corporation (Vicem),” affirmed Vinacomin another Deputy General Director Le Minh Chuan.

Earlier, Vicem said that it is facing a serious shortage of coal. Each day, it needs up to 5,000 tonnes of grade 3 and 4 coal dust, but Vinacomin only meets half of the demand.

The shortfall affects operations of its affiliates, including Hoang Thach, But Son, Tam Diep, Hoang Mai, Hai Phong and Ha Tien, Vicem complained.

Responding to Vicem’s complaint, Vinacomin Deputy General Director Nguyen Manh Hung said, in the first nine months of this year, Vinacomin supplied 4 million tonnes of coal for Vicem, or 64.8% of the set full-year target.

The modest figure is attributed to Vinacomin’s low output of grade 3 and 4 coal dust, Hung said, noting that his group had to halt the coal supply for many cement firms which did not make payments on time in September.

Due to the limited supply, cement companies should negotiate and sign contracts with the group before carrying out their new projects. Cement producers are also advised to ink long term contracts with Vinacomin when Vietnam may have to import coal in 2015.

Vietnam to open up booming express delivery market

2010-09-27T16:59:00.000-07:00

As part of its accession plans in the World Trade Organisation, Vietnam has committed to liberalising the express delivery market to level the playing field for both local and foreign express delivery companies.

Vietnam plans to open its market in 2012 to allow joint-ventures to be made with 51 percent foreign investment capital or to establish wholly-foreign companies in the next five years, according to Paul Needham, chief editor of CEP-Research, the first internet portal specialised on the courier, express and postal market.

The country's revenue in express delivery has grown steadily from 50 million USD in 2007 to around 200 million USD in 2010. In urban areas where the abundance of enterprises means express delivery is in high demand, expenditure is estimated to reach between 10-100 million VND per unit (512-5,120 USD).

According to Ho Chi Minh City 's Department of Planning and Investment, the increasing number of businesses joining in express delivery service are not yet accounted for.

Big domestic and foreign companies including VNPost Express, Saigon Post, Viettel, and multi-nationals like TNT, DHL, FedEx and UPS are operating in a joint-venture model.

These companies are more powerful in technology and finance than the remaining small-scale companies in the country.

Meanwhile, companies with domestic prestige like Tin Thanh, Netco, Nasco, Hop Nhat, 247 Express and 365 Express account for 20 percent of the market share.

The domestic companies are experienced with long-term development from three to 10 years; however, they are unable to compete with foreign express delivery companies who have powerful international networks.

The country's exports are expected to reach 8.8 percent in 2010 and the swift movement of goods both domestically and internationally is key to facilitating and enhancing economic growth that will generate more opportunities for express delivery services.

The four leading express delivery companies, DHL, TNT, FedEx and UPS, have expanded their network in Southeast Asia in order to get a firm foothold in this market.

They have invested in their network, equipment and services as well as expanded their aviation network in Singapore , Indonesia , Malaysia , Thailand and recently Vietnam – a newly emerging market.

International express delivery companies have entered the logistics services market, which has been growing quickly in Vietnam .

Onno Boots, regional managing director of TNT Southeast Asia and India , said " Vietnam has tremendous growth potential and occupies a strategic position in Asian trade being so close to China ."

In Southeast Asia and Vietnam , TNT has been expanding its network and service in a unique way. It has focused its efforts on developing a cost efficient road network service that links seven countries and 127 cities across Southeast Asia and China , including Vietnam – a total distance of more than 7,650km.

Its unique road network is linked to its air network, thereby enabling customers to choose from a wider variety of transports that suit their needs – by air, road or a combination of both.

Today, TNT has launched an expanded and newly-designed integrated air and road hub located at ICD My Dinh, Hanoi , to handle soaring freight volumes.