Air travel surges 20% in 9 months

HA NOI — The aviation market in the first nine months saw a year-on-year increase of more than 20 per cent in the number of air travel passengers, estimated the Civil Aviation Administration of Viet Nam.

The administration estimated that roughly 15 million passengers went through the country's airports in the first nine months of this year, of which Vietnam Airlines, Jetstar Pacific and Viet Nam Air Service Co (Vasco) accounted for more than 11 million.

In the first nine months, the administration also estimated that roughly 340,000 tonnes of goods were transported via air, an increase of 36 per cent over the same period last year.

Industry insiders forecast the country's aviation market in the last quarter would continue to surge due to an increased number of flights licensed by the aviation authorities for foreign airlines including Turkish Airlines, Poland's LOT and Qatar Airways.

Vo Huy Cuong, director of the administration's Air Transport Department, attributed the steady growth to the continuing strong expansion of the domestic segment backed by flagship carrier Vietnam Airlines.

Cuong said that Vietnam Airlines and its subsidiary Vasco still accounted for the lion's share of around 80 per cent of the domestic market while the rest was covered by Jetstar Pacific.

With the introduction of Air Mekong and Blue Sky Air recently, which lifts the number of operational airlines in the country to nine, it was expected that the competition in the domestic aviation market would increase.

The administration expected that the country's overall aviation market would grow roughly 20 per cent in 2010, higher than the 14 per cent figure it had projected earlier this year, thanks to more domestic services and a significant increase in the number of international visitors.

The administration's statistics showed that roughly 26.2 million passengers and 445,800 tonnes of cargo were transported by air last year, four times higher than in 2000. — VNS

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Agricultural exports rise 22.3% in first nine months

Workers process pineapple for export in Ninh Binh Province. Agricultural exports reached US$14 billion in the first nine months of the year. — VNA/VNS Photo Huy Hung

HA NOI — Agricultural export value reached US$14 billion in the first nine months of the year, an increase of 22.3 per cent over the same period last year, according to the Ministry of Agriculture and Rural Development.

Of the total, seafood accounted for $3.47 billion – an increase of 14.2 per cent over the previous year – while forestry products accounted for $2.6 billion, a whopping 36.3 per cent increase.

Remaining agricultural exports totalled $7.2 billion, an increase of 21.1 per cent, of which rice earned $2.56 billion, an increase of 14 per cent.

The sector as a whole generated 27 per cent of the nation's total export value in first nine months of the year, the ministry said.

Nguyen Viet Chien, director of the ministry's Centre for Information and Statistics, said the increases were due both to high demand and rising global prices.

Among leading cash crops, rice exports totalled 5.5 million tonnes during the nine-month period, an increase of 12 per cent, while rice prices rose to an average of $470 per tonne, 3 per cent higher than last year and nearly comparable to the average price for rice from Thailand, where rice production was effected this year by natural disaster.

Despite gloomy forecasts earlier this year that coffee exports would not reach $1 billion during 2010, coffee exports rose 4.2 per cent in the first nine months to a volume of 925,000 tonnes, while export value has already surpassed $1.3 billion.

Rubber exports climbed to 531,000 tonnes in the first nine months, an increase of 10.9 per cent, earning $1.45 billion – double last year's value.

Tea exports rose 4 per cent in volume during the period to 100,000 tonnes and 16.7 per cent in value to $146 million, while cashew exports jumped by 10 per cent in volume to 143,000 tonnes and by 30 per cent in value to $780 million.

Favourable conditions on world markets have made it likely that total agricultural export value would exceed $16 billion by the end of the year, Chien said. — VNS

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HCM City meets socio-economic targets

HCM CITY — HCM City has reached its socio-economic targets that were set during the first nine months of this year, city leaders told a meeting held in the city on Thursday.

According to figures from HCM City Department of Planning and Investment, the city GDP for the period is more than VND304.5 trillion (US$15.9 billion), an increase of 11.2 per cent over the same period last year.

The service sector accounted for 53.6 per cent, a surge of 11.2 per cent; industry and construction 45.5 per cent, a rise of 11.2 per cent; and agriculture 0.9 per cent, an increase of 6 per cent, compared to the same period last year.

Total revenue for retail products and the service sector reached VND270 trillion ($14.06 billion), a 31.2 per cent rise over the same period last year.

Other figures such as industrial and agricultural production value, tourism revenue, consumer goods and passenger transportation and banks' mobilised capital have surged considerably compared to last year.

During the first nine months, the total export turnover of the city, excluding crude oil, reached $12.126 billion, an increase of 10.7 per cent over last year.

However, the total import turnover reached nearly $15.5 billion, a rise of 12.6 per cent.

In addition, the total city budget reached nearly VND11.7 trillion ($600 million), an increase of 26.2 per cent.

Total investment capital reached VND95.2 trillion, an increase of 17.7 per cent.

At present, the city has 216 licensed foreign direct investment (FDI) projects with a total investment capital of more than $1.63 billion.

The city has attracted about VND46 trillion in Official Development Assistance (ODA).

During the last nine months, HCM City has offered jobs for 222,500 labourers, reaching 82.24 per cent of the target set.

The number of poor households has fallen to 7.1 per cent of the total population.

New targets

The city has proposed eight solutions to ensure socio-economic targets this year.

The city will continue to operate the programme to stabilise prices for essential products, and improve the management and oversight of the market in the city.

The city will also promote trade and urge companies to hasten the speed for disbursement of projects or works whose capital is sourced from the city budget.

It will continue to reform administrative procedures, creating the most favourable conditions for residents and businesses.

It will also ensure food safety and hygiene as well as disease prevention.

HCM City has also set a target for 2011.

For example, it will continue to increase the quality and competitiveness capacity of the economy in the context of global integration.

It will mobilise all parts of the society to invest in and develop infrastructure as well as protect the environment.

In 2011, it targets to increase the GDP by 12 per cent, exports by 11 per cent.

Total capital for socio-economic development will reach VND200.4 trillion, and the city budget will reach VND160.5 trillion. The city also aims to focus on foreign affair activities and improve the standard of living for its residents. — VNS

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Consumer price index leaps 1.31% in September

HA NOI — The consumer price index in September soared dramatically by 1.31 per cent over last month, a leap that was three times greater than forecasts by the Market Watch Team.

The CPI rise sparked concerns that the year would end with a high annual inflation rate.

Do Thi Ngoc, an expert from the General Statistics Office, said the high increase in CPI this month was part of a trend in annual cyclical inflation fluctuations in Viet Nam.

On aggregate, the CPI rose 8.92 per cent over the last 12 months, and 8.64 per cent in comparison with the first nine months of last year.

Ngoc said two of the reasons for the strong increase in CPI during September were a rise of 2.32 per cent in food prices and a hike of 12.02 per cent in education services, while school fees increased by three to four times in 36 cities and provinces.

Another reason was an increase of 2.1 per cent in the depreciation of the Vietnamese dong compared to the US dollar, which in turn, hit a series of imported products, including construction steel, fuel and gasoline.

In addition, outbreaks of blue-ear pig disease also caused food and meat prices to soar.

A long National holiday spurred consumption and domestic tourism, a sector that saw price rises of nearly 0.8 per cent in food and restaurant services.

Gold saw a robust increase of 3.58 per cent in price this month, a rise of 37.39 per cent in comparison with the same period last year. Meanwhile, the US dollar increased 1.61 and 7.08 per cent, respectively.

Only post and telecommunications groups saw a decline in prices of 0.07 per cent this month.

Several provinces saw a high CPI, including Khanh Hoa (2.79 per cent); Thua Thien-Hue (1.89 per cent) and Can Tho (2.97 per cent).

The GSO's experts also predicted that from now until the end of the year, the CPI will fluctuate due to increases in essential commodities prices, a continuous depreciation of the Vietnamese dong compared to the US dollar and price hikes for input materials for production and import products.

Also, consumption will soar next month during celebrations of 1,000 years since the foundation of Ha Noi, along with Christmas and the new year. Therefore, CPI for the year will likely be higher than 8.5 per cent.

CPI rises in major cities

The CPI in HCM City increased by 0.97 per cent compared to last month, after two consecutive months of decline, according to the city's Statistics Office.

The city's CPI in September rose 7.59 per cent compared to the same month last year.

Since the beginning of the year, the CPI has increased 5.54 per cent.

September was also the only month of the year that the prices of all 11 commodity groups in the price basket increased against last month.

Of the 11 commodity groups, the education category saw the highest increase of 5.57 per cent as September is the traditional start of the new school year. Most schools have raised tuition fees for the new school year.

The culture-sports-entertainment sector had the second-highest increase with 1.51 per cent, followed by the transport with 1.13 per cent.

Meanwhile, the CPI in Ha Noi also increased by 0.96 per cent compared to last month, according to the Ha Noi Statistics Office.

Ha Noi's CPI in September increased by 9.05 per cent compared to the same period last year.

In September, gold prices were up 3.57 per cent over last month and the US dollar rose by 1.35 per cent against the Vietnamese dong.

Dr Tran Hoang Ngan, deputy rector of the University of Economics in HCM City, said that if the trade deficit was not managed more effectively, the time period between the rise of the US dollar against the Vietnamese dong would eventually become shorter, affecting macroeconomic stability, production and trade. — VNS

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FDI disbursement tops $8b first nine months

Vehicle parts production at the Taiwan-invested Viet Nam Precision Industrial No1 Co in northern Vinh Phuc Province. — VNA/VNS Photo Tran Viet

HA NOI — Disbursement of foreign investment during the first nine months of this year surpassed US$8 billion, an increase of 4.8 per cent year-on- year, according to the Foreign Investment Agency (FIA).

However, the disbursement which hit $800 million in September was $50 million lower than that of the previous month, and far behind the average disbursement rate of about $900 million for each month since the beginning of this year.

During the nine-month period, the nation attracted $12.19 billion in foreign direct investment (FDI), 87.3 per cent of the amount during the same period last year. Earlier, the country had set a target of drawing $22 to $25 billion in FDI this year.

Up to 720 new projects were licensed during the period, worth a combined $11.4 billion, an increase of 37.3 per cent over same period last year.

There was a decline in additional investment to existing projects, the FIA said, adding that 153 projects had registered to increase capital by a combined $783 million, only 13.8 per cent of the same period last year.

An FIA representative yesterday refused to make further comments on the drastic decrease.

Netherlands was the leading source of foreign investment in Viet Nam, investing $2.2 billion, followed by South Korea with $2 billion and the US with $1.87 billion.

The processing and manufacturing sector held the lion's share of FDI, gobbling up $3.65 billion, or 30.2 per cent of the registered total.

Business advantages were described as one of the main reasons for the large influx of FDI into the sector. The foreign-invested sector posted a nine-month export turnover of $27.4 billion, a year-on-year rise of 26.5 per cent or equivalent to 53 per cent of the country's total export value.

Meanwhile, FDI in the electric and gas production and distribution sector reached $2.94 billion, accounting for 24 per cent of all FDI.

With a high average investment capital of $150 million per project, the real estate sector ranked third in FDI attraction with $2.75 billion, making up 22.6 per cent of the total.

The southern province of Ba Ria-Vung Tau was the top destination for foreign investment, attracting $2.23 billion. It was followed by the northern province of Quang Ninh with $2.15 billion, HCM City with over $1.8 billion and central Nghe An Province with $1 billion. — VNS

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North in deficit as south runs surplus

HA NOI — Ha Noi's trade deficit reached nearly US$10 billion, while HCM City reaped a trade surplus of about $300 million in the first nine months of this year, statistics offices in the two cities stated.

In Ha Noi, the trade deficit doubled in export value, the statistics office reported, adding that in the first nine months of this year, the city was expected to earn an export revenue of $5.5 billion, a year-on-year increase of 19.5 per cent. Meanwhile, the import value rose by 18.2 per cent to $15.5 billion.

In September alone, Ha Noi's trade gap waspredicted to hit $1.08 billion, up $70 million over August. Export revenue was expected to drop 0.3 per cent against the previous month to $680 million, while import turnover was expected to rise 1.3 per cent to $1.76 billion.

"It is easy to understand why Ha Noi has a big trade gap. It is a large developing city with a high demand for machinery, equipment, accessories and materials for construction projects," said an official from the statistics office's trade section.

In the first nine months of the year, huge sums were spent on imported luxury goods such as cars, wine, cigarettes and interior furnishings, she said.

The Ha Noi Statistics Office earlier forecast that the capital would suffer a trade deficit of $13.8 billion in 2010, with exports earning just $7.6 billion and imports $21.4 billion.

From January to September 2010, HCM City's import turnover is estimated to reach nearly $15.5 billion, a year-on-year increase of 12.6 per cent. Its export value is predicted to reach $15.8 billion, representing a year-on-year increase of just 1 per cent.

In the coming months, export turnover should rise as market demand would typically rise in the last months of the year, the city's Statistics Office stated. Although HCM City experienced a trade surplus, the office reported that exporters were encountering persistent difficulties.

Officials said the price of raw materials was increasing, which would affect exporters' competitiveness. They also said the city was suffering a shortage of skilled workers and that some industries were facing material shortages, both of which were hitting exports.

In September alone, the city's export revenue month-on-month dropped 9.7 per cent to $1.7 billion. — VNS

Meanwhile, the decrease in gold and crude export volumes also contributed to the fall in the city's total export value, officials said. — VNS

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September inflation set for small rise

HA NOI — Inflation is unlikely to increase sharply in September despite some factors likely to exert upward pressure on the index.

Recent estimates indicated that the consumer price index (CPI) this month would record a month-on-month increase of one per cent.

However, official sources said that a CPI increase of one per cent was unlikely because price rises in some essential goods were less than previously estimated.

The Ministry of Industry and Trade's Domestic Market Management Team expected September's CPI to increase by just 0.3-0.4 per cent against August.

Crude oil registered a slight reduction, but many other essential goods continued to increase in price, including sugar, fertiliser, food and catering services, animal feed, milk, medicines, consumer goods and steel ingots.

So far this month, rice prices had increased by VND1,000 per kilo in the first week but saw a slight reduction of VND200-300 per kilo in the second week.

With the onset of the rainy season, food prices would increase in some places which had experienced heavy rain, storms and flood, said the team.

An increase in the interbank rate early this month had also pushed prices of imported products up, so a future rise in the CPI could be possible.

The new school year started in September, and increased school fees saw educational products and related services rise.

However, the prices would have little effect on the CPI because this spending accounted for only 5.72 per cent of total household expenditure, constituting the CPI.

Meanwhile, recent sharp increases in the price of gold and US dollar would not affect the CPI this month, as the index excluded the prices of those products, the team said.

The team believed many factors would lead to an increased CPI, but the rise would not be sharp due to the Government's effective policies on curbing inflation. — VNS

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Firms urged to cut imports

Containers are loaded at Chua Ve Port in Hai Phong. The nation's imports totalled $52.68 billion in the first eight months of the year, an increase of 24.4 per cent over the same period last year. — VNA/VNS Photo Hong Ky

HA NOI — Businesses should reduce imports and increase the use of domestic raw materials and equipment in order to help curb the nation's trade deficit, said Minister of Industry and Trade Vu Huy Hoang during an online meeting with business leaders on Monday.

Firms also needed to find ways to reduce costs, increase the supply of skilled workers, and boost trade and export promotion efforts, Hoang said.

Attendants at the conference agreed that a dependence on imported materials was influencing the prices of export products due to market fluctuations. They also noted that it could subject some export products to trade barriers from other countries.

The trade deficit hit a record US$8.16 billion in the first eight months of the year, an increase of $3 billion over the same period of last year, according to ministry sources.

Imports also rose to 18.3 per cent of total export turnover, and, without more effective measures, the ratio might exceed the 20-per-cent limit set by the National Assembly, the ministry said.

The nation's imports totalled $52.68 billion overall in the first eight months of the year, an increase of 24.4 per cent over the same period last year. Domestic businesses accounted for $30.3 billion of the imports – an increase of 13.2 per cent – while foreign-invested firms imported $22.37 billion worth of goods, a whopping 43.6-per-cent increase.

Imported materials for industrial production rose dramatically, including machinery, up 14.9 per cent, textiles, up 38.1 per cent and metals, up 79.9 per cent Among consumer products, imports of electronics, computers and accessories rose 31.5 per cent and imports of clothing climbed by 26.6 per cent. — VNS

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Agricultural exports climb 20%

Workers sort pineapples for export at the Dong Giao Food Export Co in the northern province of Ninh Binh. Agricultural export turnover in the first eight months of the year increased by 20 per cent to US$1.2 billion. — VNA/VNS Photo Huy Hung

HA NOI — Agricultural exports totalled US$12.2 billion in the first eight months of this year, an increase of 20 per cent compared to the same period a year ago, the Ministry of Agriculture and Rural Development announced.

Exports totalled $1.75 billion in August alone, the ministry said.

The growth was attributed to a surge of 16.6 per cent in farm products, which totalled $6.5 billion during the period; 13 per cent in seafood products, which earned $2.95 billion; and a whopping 40 per cent in forestry products, which raked in $2.28 billion.

Higher export prices drove up totals across the board, with some key products seeing a reduction in export volume but an increase in export value, said the director of the ministry's Statistics and Informatics Centre, Nguyen Viet Chien.

Coffee exports, for instance, fell 3.1 per cent in volume but saw a year-on-year increase of 4.7 per cent in value, totalling $1.2 billion. Pepper also declined 2.9 per cent in export volume to just 94,000 tonnes but surged 35 per cent in value to $312 million.

Meanwhile, rice exports rose 8.2 per cent in the first eight months of the year to 5 million tonnes, earning $2.4 billion, and increase of 12.8 per cent in value, as natural disasters and the loss of crops in China and African countries gave an opportunity to Vietnamese rice exporters, Chien said.

Cashew prices also spiked during the period, rising 18.7 per cent to $5,392 per tonne, and lifting export value by 25 per cent to $656 million, Chien said. Export volume of cashews also rose by 5.3 per cent to 120,000 tonnes, he said.

Tea was another success story, with exports increasing 2.5 per cent in volume to a total of 85,000 tonnes, and 15 per cent in value to $124 million, as the quality of Vietnamese tea improved to reach international standards, said Viet Nam Tea Association chairman Doan Anh Tuan, who noted that tea prices have risen 12 per cent since a year ago to $1,430 per tonne.

Leading export markets for Vietnamese tea included Pakistan, Russia and Taiwan, he added.

Exports of wood products were driven by the economic recovery during the period, according to Chien, who noted that exports climbed by 35.8 per cent in value to $2.3 billion.

Chien predicted that agricultural exports overall would easily exceed the target at $16 billion set for the year. — VNS

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