Category: Business

Indonesia plans to launch its carbon exchange in September, with power generation companies the first to trade on it.

The exchange will be operated by Indonesia Stock Exchange (BEI) under the supervisory of the Financial Services Authority, and the Ministry of Environment and Forestry.

According to director of the ministry’s department for the mobilisation of sectoral and regional resources Dr Ignatius Wahyu Marjaka, power producers that operate coal power plants and have a level of emissions lower than the level set by the government can sell emission allowances to their less efficient peers.

In February, Indonesia – Southeast Asia’s largest economy and the world’s eighth-largest greenhouse emitter – launched the first phase of mandatory carbon trading for 99 coal power plants owned by 42 companies and supplying electricity to state utility firm PLN.

More than half of the power generation in the country is sourced from coal.

Wahyu said that Indonesia is also looking into companies in the forestry sector that are quite capable and can meet the requirements to take part in the exchange in September.

Forestry and similar sectors linked to land use, together with energy and transportation, make up 97% of Indonesia’s pledge to reduce emissions and adapt to climate change.

Late last year, the government enhanced its target to cut emissions by 2030 by 31.89%, or by 43.2% with international financial support.

Wahyu said that Indonesian government is also identifying entities that contributed to removing 577 million tonnes of carbon dioxide equivalent (CO2e) verified under the United Nations Framework Convention on Climate Change between 2018 and 2020. The current identification is geared towards those accounting for 100 million tonnes CO2e of the overall figure, he said./.

Source: Vietnam News Agency

A seminar was held in Can Tho on June 17 to call for Japanese investment in spheres where the Mekong Delta city has demands.

Speaking at the event, Vice Chairman of the municipal People’s Committee Nguyen Van Hong said Can Tho is now home to six Japanese-invested projects worth 1.35 billion USD, helping Japan rank first in the city in terms of registered capital.

The city’s export value to Japan reached 40.6 million USD in the first four months of this year, with export staples mostly being seafood, apparel, farm produce, steel and steel products, pharmaceuticals, chemicals, feather and others, while its import turnover was estimated at 9.8 million USD, with key products being pharmaceutical raw materials, fabrics, leather, machinery and equipment.

Nobuyuki Matsumoto, Chief Representative of the Japan External Trade Organisation (JETRO) in Ho Chi Minh City, said Can Tho now boasts seven universities and serves as a major human resources training centre in the Mekong Delta, making it attractive for enterprises. The city’s workforce, particularly in the field of information technology, are highly sought after for skills in digital transformation, automation, smart factories, mechanical engineering and electrical engineering.

Deputy Consul General of Japan in Ho Chi Minh City Ogawa Megumi said several Japanese firms have invested in food processing in Can Tho as the city has abundant natural resources in agriculture and aquaculture from the Mekong River.

She hoped that when the construction of expressways is completed in the future, the transportation of goods from Can Tho to Ho Chi Minh City, the largest market, will become easier./.

Source: Vietnam News Agency

A delegation of Hai Phong city led by Secretary of the municipal Party Committee Le Tien Chau paid a working trip to the Japanese prefecture of Chiba on June 16.

Governor of Chiba prefecture Toshihito Kumagai welcomed the delegation’s visit which coincided with the 50th anniversary of Vietnam-Japan diplomatic ties. He informed them about Chiba’s socio-economic situation and the Hai Phong community in the prefecture.

Chau suggested Chiba share experience in the development, management and efficient operation of seaports, towards signing cooperation agreements for future development in the near future.

At a working session with Aeon Mall group on the same day, Soichi Okazaki, Executive Officer in charge of ASEAN Business of the Company, highlighted the city’s support for the construction of Aeon Mall Le Chan Hai Phong, making it a prominent symbol in the group’s promotional activities.

He pledged that Aeon Mall will carry out even more activities in celebration of the 50th anniversary of bilateral diplomatic ties this year.

Chau suggested the Japanese giant retailer continue expanding operations in Hai Phong, with a specific goal of building the second Aeon Mall in the city.

Hai Phong commits all possible support to Aeon Mall during the project implementation process, he said.

At a working session with Senior Vice President of the Japan International Cooperation Agency (JICA) Keiichiro Nakazawa on June 15, Chau proposed JICA offer assistance to two projects on the sustainable development of the Southeast of Hai Phong in adaptation with climate change, and the construction and upgrade of medical stations in the districts of Do Son, An Lao, An Duong, Tien Lang, Kien Thuy and Vinh Bao.

The two sides also discussed the city’s proposals and JICA’s orientations to development support in the future.

Working with the Sojitz Corporation, Chau suggested the company invest in an industrial park in Hai Phong and affirmed that the city’s authorities would accompany and support Sojitz throughout the investment process.

Hai Phong wishes to cooperate with Sojitz in various areas such as deep-water ports and healthcare, he said, suggesting CEO Fujitomo Masayoshi, who is also Co-Chairman of the Vietnam-Japan Economic Committee of the Japan Business Federation (KEIDAIREN), convey Hai Phong’s projects calling for investment to Japanese enterprises./.

Source: Vietnam News Agency

Recent interest cuts by the State Bank of Vietnam (SBV) could send trillions of VND in savings into the property market, according to the Vietnam Association of Realtors (VARs).

This could send investors hunting for good deals in the property market despite the tightening of monetary policies by the central bank and recent downturns in the market. The flow of capital could give a lifeline to the market, as well as dozens of industries including construction materials, machinery, equipment, furniture, and labour that are traditionally dependent on property sales.

There have been signals from the government that starting from the second quarter of 2023, additional policies will take place to provide additional money to the market.

In the meantime, local authorities have been told to step up efforts in resolving legal bottlenecks to allow property projects to take off. This time around, according to the association, developers have taken steps to address the market’s demand.

Factors that favour the market’s recovery include reduced interest rates, a move by commercial banks that have allowed developers access to much-needed capital injections, and where to start new projects or to finish ongoing ones.

Nguyen Van Dinh, Chairman of the VARs, said with credit room starting to open up and additional capital flowing into the market could look at a recovery phase in the near future. Traditionally, he added, properties were the preferred investment channel among Vietnamese investors that often yielded higher returns than others.

He said now could be a good time for investors to start looking for good deals as prices have had time to cool down significantly during last year.

According to the association, the tightening of monetary policy by the central bank and the government have shown signs of slowing down and could start opening up as soon as the second quarter of 2023.

Capital inflow could also be expected by the third quarter, he said.

Last year, total deposits by businesses and individuals in the banking system reached 900 trillion VND with individuals accounting for more than 565 trillion VND. The third quarter of 2023 would be a critical period as a large portion of said deposit would mature, with investors sitting on piles of cash looking for more profitable investments.

Reports from property brokers have been so far positive, with the market starting to see upticks in transactions and a higher number of requests for information by potential buyers.

Dang Quoc Viet, a representative from Smartland Real Estate Trading Floor in the northern province of Nghe An, said more prospective investors had made calls and visited his trading floor in recent weeks.

He said many had shown great interest in projects with good reputations and infrastructure, a markedly improved situation compared to last year. He added this could be a sign that investors’ confidence in the market was returning./.

Source: Vietnam News Agency

The first batch of Vietnamese seedless lychees arrived in the UK on June 16, becoming the fourth specialty fruit of Vietnam exported via the official channel to the demanding market this year.

The batch was imported by TT Meridian – a distributor of Vietnamese lychees and agricultural products in the UK. The seedless lychees were grown in the north central province of Thanh Hoa’s Ngoc Lac district.

Thai Tran, managing director of the company, said the retail price of the seedless lychee ranges from 16-18 GBP per kg, 3-4 GBP higher than the normal one.

If its quality and price are welcomed by the UK market, the company will import about one tonne a week in June and July – the harvest season of lychees in Vietnam, he noted.

He said that the company’s whole process from harvesting the fresh fruits at farms in Vietnam to selling them in the UK takes only 36 hours.

According to Thanh Hoa’s official portal, Ngoc Lac seedless lychees are produced following VietGAP, GlobalGAP, and organic standards qualified for export to Japan, Canada, and Europe. The fruit when ripen has a bright red colour, with its crispy pulp tasting slightly sweet. This variety, imported from Japan, has been grown across about 30ha in Ngoc Lac by Ho Guom – Song Am High Tech Agriculture Limited Liability Company since 2019. This is its first year of harvest with an estimated output of over 20 tonnes./.

Source: Vietnam News Agency

The Cuu Long (Mekong) Delta province of Ben Tre is expanding the development of value chains for key agricultural products.

The key agricultural products include coconut, rambutan, green-skin and pink-flesh grapefruit, longan, flowers and ornamental plants, pigs and cattle.

Ben Tre, which is the country’s largest coconut producing province, has more than 78,000ha of coconut with an annual output of 688 million nuts. More than 70% of the province’s population earns their income related to coconut growing and production.

Thirty-two co-operative groups and 28 cooperatives, with a total of more than 6,200 members, have developed value chains for a total of more than 5,648ha of coconut.

More than 348ha of rambutan, 98.5ha of longan and 374ha of green skin and pink flesh grapefruit in the province have value chains to secure the quality of the fruits, buyers and stable prices for farmers.

Nguyen Van Nhip in Giong Trom district’s Phuoc Long commune has linked with a processing company to grow coconut under organic methods for two years.

After linking with the company, he has secured buyers and gets a selling price of 5,000 – 8,000 VND per dozen of coconut higher than the market price.

The company teaches him organic growing techniques, and this helps reduce the cost of chemical fertilisers and pesticides.

The province has 67 cooperative groups and 67 cooperatives which link with companies to develop value chains for their agricultural production, according to its Department of Agriculture and Rural Development.

Ngo Tuong Vy, General Director of Chanh Thu Export and Import Fruit Company Limited in Cho Lach district, said her company supported the linkage between farmers, cooperatives and companies, and this linkage needed to focus on the long term and sustainability.

The company hopes the department will assist it to develop a value chain for 100-200ha of durian.

It is willing to invest in co-operatives and assist in managing and operating them properly, according to Vy.

Huynh Quang Duc, deputy director of the department, said cooperative groups and cooperatives were weak in linkages with other related stakeholders in their production.

The linkage between farmers and companies in some localities was not sustainable and effective, he said.

Most companies participating in value chains which buy agricultural produce, except coconut, were small or medium sized, did not have stable buyers and were easily affected by many reasons, he said.

“The province will strengthen implementing advocacy activities, transfer farming techniques and provide consultancy for developing value chains,” he said.

Nguyen Minh Canh, Vice Chairman of the provincial People’s Committee, said the province would take measures to effectively develop value chains for key agricultural products and improve the lives of people.

The measures would include developing linkages among farmers through cooperative groups and co-operatives, between cooperative groups and cooperatives and companies, and developing companies which lead related stakeholders to develop strong value chains, he said.

Dam Van Hung, owner of Huong Mien Tay in Mo Cay Bac district, which is the province’s largest establishment specialising in exporting green skin and pink flesh grapefruit, said that to develop a value chain for an agricultural product, it should be developed through the collective economy.

His establishment has linked with cooperative groups and cooperatives which grow green skin and pink flesh grape fruit to buy the fruit, and this secures both buyers for farmers and quality fruits for his establishment to export, he said.

The province aims to get production value of 1 billion USD for coconut and shrimp each in 2025, and 500 million USD for cattle, and flowers and ornamental plants each.

It will develop six concentrated coconut growing areas, including five organic coconut growing areas for a total of 1,826ha and a 20ha coconut growing area for harvesting young nuts for drinking juice.

More farmers in the province have switched to growing their agricultural produce with good agricultural practices (GAP) standards, along with origin traceability and brand names, to improve value.

The province has more than 24,240ha of coconut, fruits and aquaculture which are cultivated under GAP or organic standards./.

Source: Vietnam News Agency