February 4 is the date on which the agreement was officially signed.

Currently, the US and Japan are the two largest importers for Vietnam in term of shrimp and tuna, with a total value of nearly US$1 billion last year. It is predicted that export value to the two markets will reach 15 per cent in 2016.

Ngo Van Ich, president of the Vietnam Association of Seafood Exporters and Producers (VASEP) said that in 2015, the seafood exporters faced with many difficulties and challenges. Total exports reached only $6.7 billion, dropping nearly 15 per cent compared to 2014. This decline was a warning for the association to look back and work together to build a comprehensive strategy.

Ich added that this year, the free trade agreements with the European Union (EU) will officially take effect and the signing of the TPP agreement will facilitate Vietnam into boosting seafood exports to these markets.

Truong Dinh Hoe, VASEP general secretary, is optimistic that when Vietnam has not so far joined any the free trade agreements, seafood exporters have already met the rigorous standards of importers. For example, for shrimp exports to the US, exporters must follow Best Aquaculture Practices standards (BAP), Aquaculture Stewardship Council Standards (ASC) and the Marine Stewardship Council’s Chain of Custody (CoC) Standard.

Therefore, when TPP was officially signed, Vietnamese seafood exporters were ready to meet the standards set by importers. More so, when the export rate is slashed to 0 per cent, it will create incentives for seafood businesses to further invest in farming and processing, thus bringing them higher economic value.

According to Nguyen Phuoc Buu Huy, deputy general director of Cadovimex II Export Processing and Fisheries JSC, said his company had invested in an export and processing line equipped with BAP standards. His company also invited experts from the US Department of Agriculture (USDA), and the Food and Drug Administration (FDA) to evaluate ponds, breed, feed and processing plants. By doing so, Huy strongly believes that his company is ready to meet the strict requirements of clients from the US, Japan and other markets.

Duong Ngoc Minh, chairman of VASEP Freshwater Fish Committee and Le Van Quang, Chairman of VASEP Shrimp Committee said that the Ministry of Agriculture and Rural Development needed to closely improve development and the support policies to meet with requirements of the global market.

Accompany with businesses

Nguyen Phuoc Buu Huy said that exporters must find more markets instead of exporting their products to only one market to avoid risks in business such as technical barriers and strict hygiene regulations from importers. This solution will also help businesses become more flexible in processing and help farmers to consume their products.

Truong Dinh Hoe emphasised that once the TPP agreement comes into effect, Vietnamese exporters will strengthen their position on par with importers in the TPP block. As a result, they do not need to make concessions as before. In case of a dispute, Vietnamese exporters can also take advantage of the TPP agreement as it is now an official member. All members must comply with the rules under the agreement.

Duong Ngoc Minh, chairman of VASEP Freshwater Fish Committee, said that investment in export and processing technology to meet the local demand was one of the important parts of the TPP agreement. Once domestic products attain high quality, local consumers will choose their products and imported products from member countries will not find it easy to compete with local products on their home turf.

Minister of Agriculture and Rural Development Cao Duc Phat said that the ministry will continue to work closely with seafood exporters to handle difficulties and challenges facing them after joining the free trade and TPP agreements.

Vietnam produces 20 to 21 million tonnes of rice each year. Of this rice, 8 to 9 million tonnes are annually exported, based upon signed contracts. The remaining rice is purchased by domestic consumers, according to the Vietnam Food Association.

However, rice enterprises have not paid attention to domestic rice markets, where there is a high demand, choosing instead to focus on exports.

In 2008, two centres for distributing rice for local consumption were built in HCM City and Can Tho City to stabilise domestic rice prices. Also, several retail shops selling rice were opened for local consumers.

But these shops faced many difficulties in selling rice and even had losses, the association said, because enterprises trading rice on the domestic market must pay a 5 per cent value added tax (VAT), resulting in the prices for their rice being higher than rice sold by household businesses that do not pay VAT.

Therefore, to assure there being profits in selling rice on the local market, rice firms have had to sell high-grade rice at higher prices to those consumers with larger incomes.

In addition, firms must compete with household businesses in services involved in selling rice, the association said. The household businesses have had flexibility in distributing rice and provided a high level of services, even to rural and remote areas, while firms have distribution systems in both cities and towns.

Truong Thanh Phong, former chairman of the association, said the association has repeatedly proposed to the Government that they abolish the VAT paid by rice firms. But the Ministry of Finance has objected, causing rice firms to ignore local rice markets.

Meanwhile, in rural areas, people continue to hold back rice for their own consumption after harvesting, while selling the remaining rice to enterprises, he said.

He hopes that in the coming 5 to 10 years, living standards in rural areas will have improved and small rice mills will be closed. The people in rural areas might then sell all their rice after harvesting, and then purchase rice for daily use. If this occurs, local rice markets will have more opportunities to further develop, he said.

For the development of local rice markets, the VAT must be abolished and convenient and flexible distribution systems from rice enterprises must be put in place, he said. –

The latest data reflects the toll on the region’s countries by the entrenched equity rout and commodity price slump.

Economists are taking a cautious view of the Year of the Monkey in the wake of official figures from Indonesia, Malaysia and Thailand.

Growth figures for 2015 in Indonesia, Southeast Asia’s biggest economy, released Friday, actually surpassed analysts’ estimates. But the same analysts are far more conservative over the outlook for 2016.

Indonesia’s economy grew 5.04 percent in the fourth quarter from a year earlier, according to government data, while the economy grew 4.79 per cent for all of 2015.

The data suggests that President Joko Widodo’s efforts to unclog much-needed infrastructure investment are finally showing results.

“Some of the strength in investment in the fourth quarter probably reflects last-ditch efforts by the government to try to attain disbursement targets,” HSBC economist Su Sian Lim said in a note.

But she added that until an infrastructure plan is effectively implemented, growth for 2016 will likely remain below 5 percent.

That is below the target of 5.3 percent set by Indonesia’s Finance Ministry on the back of higher government spending and looser monetary policy at Bank Indonesia.

Other economists also had similar views, given the global gloom.

“Our expectation is for growth to clock 5.1 percent” for the Year of the Monkey because of global factors, OCBC economist Wellian Wiranto wrote in a note, while UOB economist Ho Woei Chen forecast 5 percent growth.

Numbers emerging from Malaysia, the region’s third-largest economy, were far from upbeat too. Although the country has yet to release its growth figures, trade data showed far slower expansion in December on continued weak global demand for its commodities, most notably oil. China’s slowdown also took a heavy toll, given that it is Malaysia’s biggest trade partner.

December export growth eased to 1.4 per cent from a year earlier and down from 6.3 percent in November. The full-year figure stood at 1.9 percent. Imports in December grew 3.2 percent, down from 9.1 percent in November. Total trade grew 2.2 percent from a year earlier to RM128.61 billion (S$43.5 billion).

Bank Negara has said growth will moderate this year and is confident domestic demand will continue to drive growth, buffering some of the impact from low commodity prices.

But economists expect more policy support to counter weak exports. “We still expect Bank Negara Malaysia to keep the policy rate unchanged this year, although we acknowledge the risk of further cuts to the statutory requirement ratio,” Nomura said in a note.

Meanwhile, weak global demand also compelled Thailand to keep its key interest rate unchanged at 1.5 percent for a sixth straight meeting last Wednesday as the government ramped up spending.

Official figures are yet to be released, but the Bank of Thailand said in a statement the economy gradually recovered, given heavy public expenditure, improving tourist arrivals and private consumption.

In the Philippines, which also has not released growth figures, the central bank said Friday it will closely watch global growth and volatility in financial and commodity markets to see if a change in monetary policy is needed. The central bank will meet for the first time this year on Feb. 11 to review policy.

More than 51,500 vehicles were manufactured in the two plants in 2015, up 23.3 per cent against the previous year.

Vios was the best-selling model ​of Toyota Vietnam last year, hitting 13,761 units, nearly doubling the sales recorded in 2014. The Corolla model came second with 5,926 cars sold, a year-on-year increase of 10 percent.

Toyota looks forward to a 10 percent expansion in its yearly sales in 2016.

While automobile production and sales are running smoothly, those for motorbikes have gotten stuck.

The factories of Honda Vietnam and Piaggio Vietnam in Vinh Phuc manufactured 1,910,000 units in 2015, a decline of 15 percent year-on-year.

This is the third consecutive year the manufacture of motorcycles has experienced such a sharp fall. This is forecast to greatly impact Vinh Phuc province’s budget collection as the industry is a significant contributor to the locality’s budget.

With effective the second quarter of 2016, Dentsu JaymeSyfu will handle the lead creative duties for the following brands homecare and personal care divisions: Creamsilk, Surf, Breeze, Domex, Sunlight, Cif, and the homecare portal Cleanipedia.

Dentsu Digit led by Managing Director Carlo Ople, won digital AOR for all the brands listed above and additional six brands including: Master, Axe, Eskinol, Block and White, Selecta ice cream, and Magnum.

Dennis Perez, Head of Media at Unilever Philippines was quoted staying: “We are looking forward to an exciting Unilever-Dentsu JaymeSyfu partnership, especially to crafting pioneering, ground-breaking and potentially award winning campaigns for some of our most important brands. Dentsu JaymeSyfu’s quality in creative thinking, original insights and innovative execution are promising ingredients for a fruitful collaboration.”

Vietnam Airlines is waiting for approval from the Ministry of Transport.

The move comes in the context of Vietnam Airlines is gradually losing its domestic market share to the low-cost VietJet Aviation Joint Stock Co.,.

If the plan is approved, Vietnam Airlines will hold 51 per cent of the venture, while the Vietnam Technological and Commercial Joint Stock Banks (Techcombank) will have a 49 per cent stake, Minh said.

Techcombank will make an initial investment of VND147 billion (US$6.6 million) in the venture, while Vietnam Airlines will provide aircraft and other assets of Vasco, he added.

According to the International Air Transport Association, Vietnam is expected to become among the world’s top 10 fastest-growing aviation markets in the next two decades.

The two parties agreed that better governance would raise Myanmar companies’ competitiveness and make the economy more attractive to investors.

Vivek Pathak, IFC East Asia Pacific director, said developing a strong private sector would play a pivotal role in helping Myanmar realise its economic potential and attract more foreign direct investment, which now stands at less than a third of Thailand’s.

“This is where corporate governance comes into play … Good governance can help Myanmar companies not only improve their competitiveness, but also provide assurance to investors, business partners, and other stakeholders alike, helping them attract capital and remain sustainable over the long term.”

Under the pact supported by Australia and the United Kingdom, training programmes are on offer to local companies. Seminars and conferences will be organised to raise awareness about why good governance is so crucial for Myanmar’s private sector.

Myanmar companies are notorious for underdeveloped boards of directors, ill-defined director duties, poor transparency, rudimentary control frameworks, and inadequate shareholder practices. Many of these issues stem partly from the absence of a robust legal and regulatory framework that includes basic governance provisions and investor protections.

Pathak said companies with better governance were less likely to suffer from mismanagement and usually generated better returns for shareholders. They are therefore more attractive to investors and will find it easier to draw in capital for their growth.

Myanmar’s economy has been undergoing tremendous positive changes since the World Bank Group set up an office there in 2012. Gross domestic product per capita now stands at about US$1,200 compared with neighbouring Thailand at nearly $5,800 and the overall average of about $3,800 among Asean countries.

These figures show that Myanmar has huge potential to become one of the most dynamic economies in the region, he said.

In front of nearly 400 representatives from both the public and private sectors, Professor Aung Tun Thet, a member of the Myanmar Investment Commission and economic adviser to the president, said the country needed good corporate governance to maintain its growth momentum.

Nearly 300 companies have joined the United Nations Global Compact, making Myanmar No 1 in terms of membership. To him, good management and risk management are the keys to corporate governance. He also stressed the importance of training for all directors and the adoption of corporate-governance codes based on guidelines of the Organisation for Economic Cooperation and Development and Asean.

The professor said good governance must focus on honesty, transparency, accountability, responsibility, independence, fairness, and social responsibility. A corporate-governance framework needs to reflect the culture, style, and issues of the organisation, and it should balance economic and social targets with individual and communal goals.

Interests of individuals, corporations, and society should be taken into serious consideration.

He asserted that the government needed to raise awareness of corporate governance. The Company Law, enacted before the World War I, should be amended and incorporate these values.

Dau Tu (Vietnam Investment Review) quoted Le Thiet Bao, former director of an online shopping website, as saying that conditions are ripe for the e-commerce industry to develop in Vietnam.

The country has a young population and 58 per cent of websites allow online orders, he pointed out.

Its prospects are clear from the fact that 3G technology has developed and the numbers of smartphone and credit card users keep rising.

A report on EuroMonitor, a market research company, said the number of internet users in Vietnam has increased by 153 per cent in the last five years with 40 per cent of the population using it, a high growth rate for the region.

Meanwhile, according to the Ministry of Industry and Trade, e-commerce turnover accounts for a mere 3 per cent of retail value, meaning it is virtually untapped and has unlimited potential.

A spokesperson for a big online market place, Lazada.vn, told Vietnam Investment Review that the market is likely to expand three-or four-fold this year.

Last year the number of sellers had tripled, and it has nearly 4,000 vendors selling over 400,000 products across 13 categories.

In terms of logistics services supporting e-commerce, Luong Duy Hoi, managing director of giaohangnhanh.vn, which offers shipping services, forecast that this year e-commerce would generate 70-80 million orders.

This is an attractive figure for delivery services like VNPost and ViettelPost.

Analysts said e-commerce on mobile (m-commerce) has developed strongly and continues to do so.

Tran Hai Linh, CEO of Sendo.vn, told ictnews.vn that last year the mobile transactions accounted for 45 per cent and is expected to rise to 65 per cent this year.

Lazada reported that “mobile is already generating over 60 per cent of the company’s sales, driven mainly by increasing application penetration.”

Another major online shopping platform, Zalora.vn, reported that more than 20 million people in Vietnam use smartphones.

Thanks to cheap 3G services and widespread wifi availability, surfing the net is easy in Vietnam, which has enabled m-commerce to develop rapidly.

Zalora said last year 30 per cent of hits was through mobile phones.

The Ministry of Industry and Commerce has issued an ordinance on product labelling in Lao language, in order to expand the contents of the Law on Consumer Protection.

The ordinance aims to increase the understanding of local authorities in terms of their duties in administrating and following up product labelling in Lao language.

It also focuses on encouraging domestic manufacturers and importers to label products in Lao language prior to distribution as well as to increase consumers’ understanding about the benefits and quality of products before purchasing them.

This aims to help consumers avoid buying low quality products, expired products or deteriorating products and to prevent deleterious effects on the health and property of consumers and the environment.

The order requires labelling on products in Lao language with the following contents: type or category of product, trademark as registered by manufacturer and/or importer, address of the producer and/or importer for distribution, country of origin and price, quantity, weight, quality, mass, ingredients, directions for use, warnings, date of manufacture, and date of expiry.

For products that had already been manufactured or imported before the promulgation of this regulation, retailers are required to coordinate with suppliers to obtain Lao labels.

Each provincial industry and commerce department should direct its provincial chamber of commerce and industry to bring this ordinance to announce to domestic importers and entrepreneurs for implementation, the Domestic Trade Department’s Director General, Bounthien Keosipha told Vientiane Times yesterday.

The department, on behalf of the main party of the ministry, is responsible to expand this ordinance and the planning to monitor this work towards high effectiveness, he said.

The department should inform its plans to the provincial industry and commerce authorities and domestic import entrepreneurs to follow, Bounthien said.

The department will also hold discussions with the relevant sector in relation to the design of the labeling, he added.

Different import products in Laos are still labeled in foreign languages as the country does not have measures to monitor imports while some products may low quality or expired.

The issue is a risk for local people’s health within the country and those whose don’t understand foreign languages.

Three sectors have driven GDP growth to its slower pace, Central Statistics Agency (BPS) data shows. The mining industry faded due to the global coal and oil price slump, agriculture was hampered by El Nino and the trading sector was sluggish due to decreasing automotive sales.

“Meanwhile, construction grew due to government spending, banking recorded high growth due to higher margins, while the transportation, hotels and communication sectors increased thanks to the Christmas and New Year holiday,” said BPS Head Suryamin in Jakarta on Friday.

Major household consumption was sluggish except for restaurants, housing, household equipment and health. “The simultaneous regional elections helped boost consumption,” Suryamin explained.