BUSINESS IN BRIEF 5/12
The Ministry of Agriculture and Rural Development convened an online meeting to discuss adoption of a new model plan in North Vietnam to cultivate larger paddy fields similar to those in the Mekong Delta Provinces.
Larger paddy fields have proved to be more cost effective than smaller fields, raking in higher profits and increased productivity. The North will adopt a model plan for the upcoming winter-spring crop.
The ministry also discussed targets for the winter-spring crops at the online meeting. Nguyen Tri Ngoc, head of the Department of Crop Cultivation under the Ministry of Agriculture and Rural Development, said the North will sow 1,145 hectares of the winter-spring rice crop and hopes to increase average productivity to 61.5 quintals per hectare.
Accordingly, it hopes to yield a total of 7 million tons of unhusked rice to meet domestic and export targets.
Tough challenges ahead for Vietnamese rice exporters
Vietnamese farmers are ecstatic at the news that the Southern Food Corporation, Vietnam's biggest rice exporter, has signed an agreement to export 300,000 tons of processed fifteen-percent broken rice to Indonesia.
According to Reuters, this agreement between Southern Food Corporation and Indonesia’s Bureau of Logistics to export 300,000 tons of processed fifteen-percent broken rice costs at US$545 per ton. This also has helped ease strain in both exporters and farmers.
According to the contract, Vietnam will export around 7.3 million tons of rice and Vietnamese exporters will provide 7 million tons in 2011 and the remaining in 2012. Since the beginning of the year, exporters have sold more than 6.5 million tons of rice, earning nearly US$3.2 billion.
However, Vietnamese exporters are concerned because Indonesia is considering importing ten-percent broken rice from India at US$483 per ton as well as from their traditional suppliers Vietnam and Thailand.
India has not exported rice since 2008 and has stockpiles of about 54 million tons. When the rice prices hiked, India decided to export rice again and is now a tough competitor for Vietnam.
India stands at an advantage as its prices are always lower than Vietnam and Thailand by about US$100 per ton.
This has drawn world importers to consider India as an alternative supplier, besides Vietnam and Thailand. Vietnam has already lost the market in African countries.
Vietnam Food Association (VFA) says that importers have only purchased Vietnamese five-percent broken rice while they are turning to India for other varieties, reducing the export quantity from Vietnam in October, 2011 and fewer new contracts that will be signed.
Possibly, Vietnamese exporters fret that Indonesia will use the low costing of Indian rice to further depress prices in Vietnam.
Hence, in addition to seeking new markets, VFA plans to purchase rice for stockpiling in order to help farmers and maintain domestic prices.
Despite expert forecast that prices of agricultural products will be high in 2012, timing matters and export companies will have to gauge the market before making a move.
Agricultural export value rises by over 30%
The agricultural, forestry and fishery industries gained a year-on-year increase of 30.6 per cent in export value for the first 11 months of this year, reaching US$22.6 billion, said the Ministry of Agriculture and Rural Development.
The major farming products saw the largest export value growth at 36.6 per cent to $12.3 billion. Following that, the fisheries export value grew 24.9 per cent to $5.6 billion and then the forestry export value at 14.2 per cent to $3.8 billion.
China was the largest export market for Vietnamese farming, forestry and fishery produce, reaching $4.56 billion in value. The second largest was the US with a total export value at $3.32 billion.
Nguyen Viet Chien, director the ministry's Information and Statistics Centre, said the positive outlook in the domestic and world markets contributed to the strong growth in export value of these products. While the export volume had a slight increase, the value saw a sharp surge.
With such an increase, the country is surely to succeed its target of $23 billion in exports of farming, forestry and fisheries this year.
Almost all key export products had a positive first 11 months of this year, Chien said. Rice exports experienced a year-on-year increase of 16.7 per cent in volume to 6.8 million tonnes and of 7.1 per cent in value to $3.5 billion. Rice export prices increased 8.1 per cent to $505 per tonne from the same period last year.
Viet Nam's advantage in promoting rice export activities is due to a high demand and high export price on the world market, said Trang Hieu Dung, head of the ministry's Planning Department. Meanwhile, natural disasters in other rice producing countries decreased the world's rice supply.
The rice export volume is expected to reach 7 million tonnes by the end of this year.
During the first 11 months, coffee exports saw a slight dip in volume to 1.1 million tonnes with an increase of 1.5 folds in value from the same period last year. The current value totals $2.3 billion. The export price for coffee jumped by 1.5 folds to $2,210 per tonne.
The coffee industry estimated it would export 1.19 million tonnes of coffee for this whole year.
The pepper industry also saw an increase in both the volume and value of exports in the first 11 months. The export volume and value climbed by 10.5 per cent to 122,000 tonnes and by 83 per cent to $713 million, respectively.
Meanwhile, some key farming products increased in export value but decreased in export volume, such as rubber and cashews, due to a big increase in export prices, said Chien.
The average export price of rubber surged by 50 per cent to $4,263 per tonne against the same period last year, therefore the export value of the product had a year-on-year increase of 37.5 per cent to $2.7 billion. However, the export volume decreased by 4.7 per cent to 651,000 tonnes.
Exported cashew products saw the same results as rubber. The cashew exports increased by 35.4 per cent in value to $1.4 billion while reduced by 6.7 per cent in volume to 164,000 tonnes compared to the same period last year.
Vietnam ranks 500 largest enterprises
The list of Vietnam’s top 500 largest enterprises by revenue in 2011 (VNR 500) was released on November 29 with the Top 30 reaching a turnover of more than US$1 billion.
According to the list, which was complied by the Vietnam Report Joint Stock Company in collaboration with online newswire Vietnamnet, the Top 50 enterprises also met the qualifications for the Forbes 2,000 (the world’s 2,000 largest enterprises by revenue).
Roughly 18 percent of the enterprises listed on the VNR500 last year were not included in this year’s list while State-owned groups and corporations still accounted for the six of the top 10 biggest enterprises in the country.
The Vietnam National Oil and Gas Group (PetroVietnam) topped the list, followed by the Vietnam National Petroleum Corporation and the Vietnam Post and Telecommunications Group.
Vietnam Report said that 41.6 percent of enterprises listed on this year’s list were State owned enterprises (SoEs), implying that the SoEs still has a dominant place in the landscape. Private enterprises and foreign-invested enterprises accounted for 37.4 percent and 21 percent, respectively.
Foreign invested enterprises were the most profitable with roughly 9 percent return on assets (ROA), much higher than the 2.7 percent and 2.5 percent enjoyed by the SoEs and private enterprises.
The country’s key industries remained strong despite economic difficulties, the report stated. Enterprises in the mineral-petroleum sector made up 15 percent of the VNR500, followed by banking and finance, food and beverages and telecommunications and power.
The Vietnam Top 500 Largest Enterprises by Revenue Ranking Board, which follows the Fortune 500 model, is based on international standard research results from the Vietnam Report Joint Stock Company with consultation of Vietnamese and international experts, particularly Professor John Quench, vice president of Harvard Business School.
Did Vietnam gov't undersell beer to Carlsberg?
The People’s Committee of the central province of Thua Thien – Hue has sold its 50 percent stake in the Hue Brewery Co to the Denmark-based Carlsberg Group, the Committee’s partner in the joint venture, at what insiders say is a dirt cheap price.
In selling its entire stake in the brewery, the Thua Thien – Hue government received VND1.875 trillion, or US$90 million, from the Danish company.
The sum includes around VND700 billion for “tangible value,” which consists of the company’s two breweries, and more than VND1.1 trillion for “intangible value,” which is the nationally-known brand name Huda beer.
Hue Brewery Co was founded in 1990, four years before the provincial people’s committee placed it in a joint venture with Carlsberg, with each party holding a 50 percent stake worth around $9 million.
The brewery has now become a 100 percent foreign-invested company under Carlsberg’s possession.
Nguyen Mau Chi, the brewery’s CEO, said the stake transfer was a profitable deal, since the provincial government could pocket $90 million from the initial investment of only $9 million.
However, experts said that VND1.1 trillion ($52.8 million) is an extremely low price for the well-known Huda brand name, given its large market share in the brewery sector.
Industry insiders claim that Huda beer holds a 98 percent market share in Thua Thien – Hue, and it is also the leading brand name in the north-central region.
It holds a 95 percent market share in Quang Tri, while the respective figures for Quang Binh, and Ha Tinh are 65 percent and 55 percent.
Hue Brewery also has the highest return on equity among its peers in Vietnam, with profits topping VND409 billion last year.
Even a huge investment of hundreds of millions of dollars rarely yields such a successful business result, economic experts said, adding to the belief that, despite the small initial investment, the stake transfer was conducted at far too low of a price.
For their part, Hue Brewery executives and the provincial authorities said the deal was the right move made at the right time.
Chi, the CEO, said the company has aimed to increase its market share to 15 percent from the current 8 percent by 2015.
To achieve this goal, the brewery needs an additional investment of some VND2.5 trillion, VND1.25 trillion of which needs to be earmarked by Thua Thien – Hue, an amount which is beyond the province’s financial ability.
“So we decided to sell out all of our stakes,” Chi said.
“We have to grab this golden opportunity, since few investors will be willing to open their pockets in these hard economic times.”
Chi said the deal was a logical move, since the province now has an additional fund of $90 million to invest in other sectors.
“The deal will help Hue Brewery continue its sustainable development while stimulating other provincial economic sectors, since it is the province’s leading company.”
The company has been the area’s top tax payer for the last 15 years, accounting for 35-50 percent of the total provincial tax collection. It is expected to pay taxes worth VND900 billion this year.
Hue Brewery is also one of the country’s four largest breweries, along with Sabeco, Habeco and Vietnam Brewery.
Nguyen Van Cao, chairman of the provincial People’s Committee, told Tuoi Tre that the stake transfer to Carlsberg was aimed at strengthening the Huda Hue brand name while boosting the company’s development, which will help increase its contribution to the provincial budget.
“The Carlsberg Group promises to spur the investment needed to hike total production from 200 million liters a year to 350 million liters a year within the next five years,” Cao said.
Vietnam attends Financial Education Summit in Indonesia
Nearly 300 scholars, policymakers and financial experts from 30 countries attended the financial education summit 2011 in Indonesia on November 28-29.
On the theme of “Empowering the Disadvantaged: Inclusive and Innovative Approaches to Financial Capability”, delegates shared experience in developing, implementing and measuring some of the most progressive and effective financial education initiatives in Asia Pacific and beyond.
Discussions were focused on how financial education can be used to boost financial inclusion and better protect the most vulnerable at a time of global economic slowdown.
The Vietnamese delegation, comprised of representatives from various organisations, introduced the result of micro credit programmes in the country.
The event was co-organised by the Citi Foundation, the Pearson Foundation and the Financial Times and co-sponsored by the International Financial Company, Prudential and Visa.
Wood exports eye $3.9 billion turnover
The domestic wood processing sector is expecting a record export turnover of US$3.9 billion this year, in spite of concerns over the quiet market amid the global economic turbulence, and high production costs and lending interest rates.
Figures from the Ministry of Agriculture and Rural Development show that wood export turnover in the year to November topped $3.5 billion, up by 15 percent when compared to the same period last year.
The United States, which accounts for a third of the total export value, remains Vietnam’s largest wood importer, the ministry said.
Nguyen Ton Quyen, chairman of the Vietnam Timber and Forest Product Association (Vietfores), told the Saigon Times Online that wood export turnover is expected to top $3.9 billion by year’s end, which is $500 million higher than the figure recorded last year.
Quyen said Japan, which trails only the US, the EU, and China on the list of largest importers, has posted the highest growth in wood imports from Vietnam this year.
“After the devastating earthquake disaster last March, demand for construction wood has soared,” he told the newswire.
He said wood exports to Japan by Savimex Corporation have steadily surged in the last three quarters.
“The company posted impressive growth in the third quarter, with export turnover rising by as much as 52 percent year on year,” he said.
A deputy director of a Binh Duong-based wood exporter also said Japanese importers have shown increased interest in Vietnamese wood.
He said most of the Japanese importers preferred processed wood, since natural products are quite costly.
As for the US, according to Vietfores, wood export turnover to this market in the year to October has surpassed the $1 billion mark, surpassing China’s figures and placing Vietnam in the position of the US’s largest wood exporter. In the 10-month period, China’s wood exports to the US were worth only $700 million.
According to the Ministry of Industry and Trade’s American Market Agency, two US wood processors are eying the establishment of plants in Vietnam.
Despite the rising export value, many exporters said the high production cost remains the biggest problem of the industry.
Tran Quoc Manh, director of wood processor Sadaco, said this has prevented many businesses from achieving their targeted profits.
“Many processors have seen their business effectiveness drop, since raw material and labor costs have soared,” Manh added.
Southeast Asian growth to slow through 2016: OECD
Growth in Southeast Asia's six major economies is expected to slow through 2016, the OECD said Tuesday, urging them to find new growth drivers as the key US and European export markets a stuck in crisis.
In its outlook for the region, the Organisation for Economic Co-operation and Development said domestic demand would become a more important element of growth as the developed world struggles to recover from the global downturn.
It said the six key economies of Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam would grow "five percent in 2011, and... 5.6 percent during 2012-2016, two percent lower than in 2010", the Organisation for Economic Co-operation and Development said.
The forecast comes after the Paris-based group warned on Monday that leading economies were in danger of sinking into a fresh recession or even a depression as leaders in Europe and the United States struggle to address huge debt troubles.
Growth in the eurozone is set to stall next year, dropping to 0.2 percent from 1.6 percent this year, while it said the US growth could slump to just 0.3 percent next year from 1.7 percent this year.
With this in mind the OECD said regional governments should start to diversify away from their export-led structures.
"Previously heavily dependent on external demand, domestic drivers will play a more important role in Southeast Asian economies going forward," the group said in outlook, which was launched in Jakarta.
"A new type of economic growth is needed in Southeast Asia," said Mario Pezzini, director of the OECD Development Centre.
"Every cloud has a silver lining. The global uncertainty is an opportunity to re-invent growth," he said in a statement.
Large investments in infrastructure and private consumption, driven by the growing middle class and reforms in social policies, are the increasing engines of growth in the region, the report added.
It added that structural policies are needed to boost productivity and shield the economies of the 10-country Association of Southeast Asian Nations from the impact of global uncertainty and other external shocks.
It added that comprehensive reforms were needed in many many sectors, including healthcare, infrastructure, the labour market and agriculture.
ASEAN -- which also includes Myanmar, Cambodia and Laos -- has a total population of more than 600 million and is forecast to see gross domestic product of $1.8 trillion this year.
Cbank keeps all gold bullion brands at equal rate
People holding gold bullions of brand names other than that of Saigon Jewelry Co can exchange their precious metal for SJC gold bullions at equal price, the State Bank of Vietnam has said.
The decision came after the central bank stated in its draft decree on the management of the gold trading market that SJC gold bullions, produced by the Saigon Jewelry Co -- the country’s largest gold trader -- will become a national asset and the company will come under direct management of the central bank.
The announcement has raised concerns among gold bullion producers who fear their products will be devalued since only SJC gold bullions will be allowed for circulation on the market after the decree takes effect.
Nguyen Ngoc Que Chi, CEO of Sacombank Jewelry Co, told the Saigon Times Online that the central bank’s decision to allow for equal price exchange among gold bullions of different brands can partly ease the concerns.
“Since gold bullions of other brand names have comparable quality to SJC, they should be allowed to be exchanged for SJC at equal value,” Chi said.
Nguyen Thanh Truc, CEO of Agribank Jewelry Co, said the cost of converting gold bars of other brand names into SJC bullions is only VND30,000 (US$1.4) a tael.
Thus, the public should not rush to sell out their gold bullions to avoid causing market disruption, Truc advised.
The central bank also assured that after SJC has become the monopoly in the gold trading market, gold bullions of other brand names will still be eligible for circulation.
Meanwhile, Nguyen Minh Chau, CEO of Hanoi-based Bao Tin Minh Chau Jewelry Co, said that although it was still unknown when the draft decree would become effective, his business had been adversely affected as a large number of investors holding the company’s Rong Thang Long gold bullions had recently scrambled to sell out.
Chau said to cool the feverish trading, his company had to cut the selling price to simultaneously bring down the buying price.
“We have intended to seek permission from the central bank to turn our gold bullion into SJC gold,” Chau said.
“This would enable us to buy Rong Thang Long gold bullion from consumers at a higher price, which would also benefit them.”
Truc of Agribank Jewelry Co said the fact that SJC would become the national gold bullion brand name, which is expected to be SBV, was “a good move by the central bank,” since it would fortify the latter’s ability to moderate the market and curb speculation and price manipulation.
“However, the change should be made as soon as possible since SJC, currently operating as a business, will still have to focus on profits, and their operations can have destabilizing effect on the market,” Truc said.
Middle East presents chance for local agro exports
The Middle East offers the potential of high profits for Vietnamese rice and other agricultural exports, according to Deputy Minister of Agriculture and Rural Development Luong Le Phuong.
Phuong said he had just attended the Rice Dubai 2011 Exhibition in the United Arab Emirates as part of his trade promotion trip to the Middle Eastern country earlier this month.
He said the Vietnamese booth in the exhibition had attracted the attention of many international businesses, with around 200 foreign companies visiting the booth and exchanging information with local businesses.
“We managed to sell out all of the products we brought to the fair,” Phuong said, adding that many corporations from the UAE said they are willing to buy Vietnamese agricultural products and invest in Vietnam.
Phuong said some local businesses had also managed to sign new contracts on the spot at the fair.
For instance, he said, two An Giang-based food processors had contracted to export a total of 27,500 tons of rice.
“A local company also inked a deal to export five containers of canned seafood to the UAE monthly, while another signed a contract with a Dubai partner on pepper exports,” he said.
He added that although Vietnamese agricultural products have for the first time been introduced to the Middle East market, they received special attention at the event.
“This is a good chance for local exporters to further exploit this potential market.”
He said millionaire Mahendra Patel, chairman of the GEAP Group, a diverse group of companies involved in various industries in the Middle East, had signed a memorandum of understanding with Vietnam to allow the latter to use a building in Dubai’s Jebel Ali Free Zone to establish a distribution center for Vietnamese goods.
“We had not expected to have such a golden opportunity,” Phuong added.
“Around 6,200 enterprises from 120 countries are operating in JAFZA, a free economic zone, which is the gateway for global exports to enter the Middle East and North African markets.”
He added that under the two parties’ agreement, GEAP Group will buy Vietnamese products and use its GEAP Foods distribution network to bring the goods to other countries in the region.
“This will be a trade promotion center of Vietnam in the Middle East,” Phuong stated, adding that the Vietnam Association of Seafood Exporters and Processors would be assigned to take over the building.
The minister said millionaire Ali Mousa, chairman of the FAM Holdings Group, would set up an investment fund for investors from Dubai to operate in Vietnam, especially in the agricultural sector.
Phuong said Vietnamese businesses should research export procedures, technical barriers, and food safety and hygiene regulations, as well as payment methods to grab the chance to enter the Middle East market.
“If local exporters can make good use of this opportunity, the Middle East and North Africa will become very important markets for Vietnamese rice and other agricultural products,” he said.
At a time when the rice exporting sector is facing difficulties, accessing new markets will help stabilize prices in the domestic market, Phuong explained.
“Thus, the government should increase trade promotion to this market by organizing trade exhibitions, or supporting local businesses to open representative offices for customer meetings in Dubai,” he urged.
Vietnam produces record rice output
Vietnam harvested a record rice output of 41.8 million tonnes this year, 1.8 million tonnes higher than last year, according to Ministry of Agriculture and Rural Development (MARD).
The country has shipped abroad 6.8 million tonnes so far this year, earning US$3.5 billion, a year-on-year rise of 7 percent in volume and 16.7 percent in value, says the MARD.
The MARD says that higher prices and the decline in supply in the world market have created favourable conditions for Vietnam to boost rice export.
Indonesia is Vietnam’s largest rice importer, followed by the Philippines. The two markets consumed nearly 40 percent of the country’s total export volume.
Vietnam is expected to sell more than 7 million tonnes of rice this year.
Vietnamese, Chinese women entrepreneurs meet in Beijing
The Vietnam-China Women Entrepreneurs friendship exchange took place in Beijing on November 29 with the participation of more than 100 delegates.
The get-together, the second of its kind, was initiated and organised by the Vietnamese Embassy in China, aiming to boost mutual understanding and cooperation among women of both countries as well as traditional friendship between the two peoples.
President of the Vietnam Women Entrepreneurs Council (VWEC) Tran Thi Thuy said China is one of Vietnam’s leading trade partners and ranks third in Vietnam’s export markets, after the US and Japan.
Two-way trade has so far exceeded US$28 billion this year, a year-on-year rise of 40 percent, with positive signs recorded in preferential credits investment.
Thuy affirmed that the council will coordinate with relevant agencies to help the two countries’ women entrepreneurs and the business community to meet and exchange experiences to promote economic, trade and investment cooperation and scientific and technological transfer.
Sharing the same view, the Vice President of the China Association of Women Entrepreneurs (CAWE) Long Jiangwen affirmed that CAWE and VWEC will develop closer ties and bring into play their active role in accelerating socio-economic development in their respective countries and comprehensive cooperation between Vietnamese and Chinese women.
RoK introduces preferential export-import taxes
A workshop on the Republic of Korea (RoK)’s preferential export and import taxes for Vietnam provided Vietnamese businesses with useful information they can use to their advantage in trade.
The event was held jointly by the RoK Ministry of Strategy and Finance, the Vietnam Ministry of Foreign Affairs and Trade, the Korea Customs Service, and the Vietnam Chamber of Commerce and Industry.
Experts said that participation in the Free Trade Agreement (FTA) will facilitate the reform of mechanisms, policies and the business climate in countries. Once it becomes part of the FTA, Vietnam will increase its opportunities to penetrate other international markets and earn higher export revenues.
Kim Deok Ku from the RoK Ministry of the Knowledge Economy said that signing a free trade agreement between the Rok and ASEAN has boosted trade transactions between the two sides.
A survey of Vietnamese businesses showed that manufacturers and traders know little about the advantages of FTAs.
From January 2009 to June 2011, Vietnamese businesses sent nearly 300 dossiers to the RoK seeking certificates of origin for their products but many were rejected because they did not meet the set requirements.
Website creates opportunities for Vietnamese businesses
A new website was introduced at a workshop in Hanoi on November 29 to support local businesses in promoting goods, services and exports.
A project on BuyVietnam.com.vn was started in 2007 and its first version was completed in May 2011 by the ASEAN promotion Centre on Trade, Investment and Tourism with Japan (AJC). Its single interface covers a list of commodities and regulations on accounts and administration.
Experts underlined the differences between BuyVietnam.com.vn and BuyASEAN.jp and similar websites of other ASEAN countries, as well as necessary skills to administer affiliated webpages, aimed at increasing turnover and sharing information among business communities.
Ta Hoang Linh, deputy head of the Department of Trade Promotion, said that the department plans to use e-commerce technology to help boost export turnover. In developing countries, he said, e-commerce is considered an effective tool for promoting trade activities and providing businesses with useful information.
The launch of the website will help strengthen import-export activities, improve business capacity and operations, and promote cooperation between Vietnamese trade agencies and ASEAN member countries, said Linh.
The event was co-organised by the Trade Promotion Department under the Ministry of Industry and Trade and AJC.
Quang Binh offers incentives to Indian businesses
A seminar was held in Quang Binh province on November 29 to introduce its business potential to Indian companies.
Located in central Vietnam, Quang Binh boasts Hon La port in the Hon La Economic Zone which is currently able to receive 20,000 DWT vessels and will increase its capacity to handle 50,000 to 70,000 tonne ships in the future. The province also has National Highway 12A, offering the shortest transport route from Hon La port to Laos and Thailand.
In addition, its Phong Nha - Ke Bang National Park features an extensive and diverse system of natural caves which has great tourism potential.
Representatives from the Ministry of Industry and Trade (MoIT) introduced the economic and trade ties between Vietnam and India, the ASEAN - India Trade in Goods Agreement (AITIGA) and several industries in India.
Representatives from the provincial administration pledged to adopt preferential policies to encourage Indian businesses to invest in Quang Binh.
Since the beginning of this year, the import-export turnover between Vietnam and India has reached roughly US$3 billion, up more than 40 percent over the same period last year. Both countries are striving to reach US$7 billion in trade turnover by 2015.
The event was co-organised by the Indian embassy in Vietnam, the Vietnam Chamber of Commerce and Industry, the MoIT and the Quang Binh province’s People’s Committee.
Vietnam attracts more development investors
Vietnam has moved quickly in the process of international economic integration since 1993.
In an article on November 28, the French daily newspaper Le Figaro noted that during the 20-year renewal process Vietnam has annually maintained a high economic growth of 7 percent to become a middle income nation and rank second in the world’s largest rice and coffee exporters.
With a population of 85 million and political stability Vietnam has attracted increasing attention from donors and private investors, Le Figaro said.
It quoted Vietnam Deputy Minister of Planning and Investment Cao Viet Sinh as saying during his visit to France that the Vietnamese Government was strongly committed to eliminating poverty, reducing inequality and differences between urban and rural areas and coping with climate change in 10 years.
Deputy Minister Sinh said that the Government wants to promote and modernize the market economy, complete legal system and restructure State-owned enterprises and financial system.
According to Le Figaro, since 1993 Vietnam has received US$64 billion in bilateral and multilateral aid and has already disbursed more than half of the amount. Vietnam’s GDP reached US$103 billion in 2010.
The French Development Agency (AFD) is placed third among donors for Vietnam, after Japan and the Republic of Korea.
From now to 2013, France will provide 1 billion euro in preferential loans for Vietnam’s infrastructure and agricultural development.
Vietnam is also the third largest customer of AFD, after Tunisia and Morocco.
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