Demand for essential goods to increase

Demand for 12 essential goods items is forecast to increase next year, including for steel, cement, oil products and coal.

Based on Vietnam 's economic growth expectations from 2011-15, the
Ministry of Industry and Trade estimated demand for steel products to
increase 8-10 percent to 12.5-12.8 million tonnes in 2011.

The demand for cement next year was predicted to go up by 10 percent to
55-56 million tonnes while total output to reach 60 million, thus
meeting demand and keep price stable.

Demand for petrol
and oil products was forecast to be 17 million tonnes next year, to be
met by 6 million tonnes of domestic production and 11.6 million tonnes
of imports.

The nation would balance the demand for 44 million tonnes of coal by producing 47.3 million tonnes, the ministry said.

Paper demand would increase to 2.35 million tonnes next year, to be met
by 1.77 million produced locally and 700,000 tonnes from imported.

The nation's consumption of 28 million tonnes of rice in next year
would be supplied by the expected harvest of 31.6 million tonnes.

The demand on medicine, food and fertiliser was also expected to increase next year.

Meanwhile, Prime Minister Nguyen Tan Dung has called on ministries,
agencies and municipal and provincial authorities to implement
strategies to stabilise the market and boost production.

Directive No1875/CT-TTg, released last week was designed to ensure the
country's growth rate reaches 6.5 percent, while the consumer price
index did not rise above 8 percent.

Dung said the economy,
which typically suffers during the final months of the year, would also
have to weather capital shortages, rises in the price of essential
goods, power shortages and potential animal epidemics/.

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HCM City hosts ports, logistics confab

The Vietnam Container Ports and Logistics 2010 conference offers
delegates the opportunity to exchange information on port and logistics
management and operations amid the global economic recovery.

Speaking at the two-day conference which opened in HCM City on
Oct. 14, Vuong Dinh Lam, chairman of the Vietnam Maritime
Administration, set out the ambitious agenda: Foreign and local firms
discuss a comprehensive plan to develop shipping and ports in Vietnam
.

In the last two years, despite the economic
crisis, port and logistics operations in the country were encouraging
due to the Government's effective economic management and the efforts of
the maritime sector, he said.

From handling 197
million tonnes of freight in 2008, the sector's output increased to 251
million tonnes last year, he said.

From 1,199
vessels weighing 4.38 million DWT in 2007, the county's fleet increased
to 1,598 ships and 6.3 million DWT last year, he said.

The target for the maritime industry by 2020 is to be the largest
component of Vietnam 's sea-based economy which is expected to
contribute 53 percent to 55 percent of GDP, he said.

The Government continues to promote maritime administrative reform and
is drafting legal documents and strategies that comply with the
country's laws and international conventions, he said.

Vietnamese companies provided an insight into infrastructure and port
development around the country to support cargo transport.

Executives from major industry players like Antwerp Port Authority,
Maersk Line Asia Pacific, and the International Association of Ports and
Harbors, NYK Line Vietnam , Maersk Vietnam , Cai Mep
International Port , Sai Gon New Port , Global Maritime and
Port Services, APL-NOL Vietnam , and YCH Group gave presentations
and held panel discussions.

They were joined by officials from the Ministry of Transport and the Vietnam Maritime Administration.

There was a pre-conference workshop on Practical Strategies to
Optimise Port Operations, Planning and Logistics highlighting strategies
for sustainable port development and addressing the demands of
efficient container and general purpose terminals./.

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City hosts ports, logistics confab

HCM CITY — The Viet Nam Container Ports and Logistics 2010 conference offers delegates the opportunity to exchange information on port and logistics management and operations amid the global economic recovery.

Speaking at the two-day conference which opened in HCM City yesterday, Vuong Dinh Lam, chairman of the Viet Nam Maritime Administration, set out the ambitious agenda: Foreign and local firms discuss a comprehensive plan to develop shipping and ports in Viet Nam.

In the last two years, despite the economic crisis, port and logistics operations in the country were encouraging due to the Government's effective economic management and the efforts of the maritime sector, he said.

From handling 197 million tonnes of freight in 2008, the sector's output increased to 251 million tonnes last year, he said.

From 1,199 vessels weighing 4.38 million DWT in 2007, the county's fleet increased to 1,598 ships and 6.3 million DWT last year, he said.

The target for the maritime industry by 2020 is to be the largest component of Viet Nam's sea-based economy which is expected to contribute 53 per cent to 55 per cent of GDP, he said.

The Government continues to promote maritime administrative reform and is drafting legal documents and strategies that comply with the country's laws and international conventions, he said.

Vietnamese companies provided an insight into infrastructure and port development around the country to support cargo transport.

Executives from major industry players like Antwerp Port Authority, Maersk Line Asia Pacific, and the International Association of Ports and Harbors, NYK Line Viet Nam, Maersk Viet Nam, Cai Mep International Port, Sai Gon New Port, Global Maritime and Port Services, APL-NOL Viet Nam, and YCH Group gave presentations and held panel discussions.

They were joined by officials from the Ministry of Transport and the Viet Nam Maritime Administration.

There was a pre-conference workshop on Practical Strategies to Optimise Port Operations, Planning and Logistics highlighting strategies for sustainable port development and addressing the demands of efficient container and general purpose terminals. — VNS

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Cement makers decry coal shortfall

A worker operates cement packing line in Viet Nam Cement Industry Corporation. Vinacomin says the group is not responsible for cement producers'insufficient coal supply. — VNA/VNS Photo Tuan Anh

HA NOI — Officials from Viet Nam National Coal and Mineral Group (Vinacomin) said the group was not responsible for cement producer's insufficient coal supplies.

Viet Nam Cement Corporation (Vicem) said last week that they did not have enough coal to continue producing cement and several plants may have to stop operating because of coal shortage.

Officials from Vinacomin said the Cement Material and Transport Joint Stock Company (Comatce), Vicem's affiliate, that purchases coal for the cement industry, had signed contracts with the group to provide 1.5 million tonnes to the cement group this year.

Under the contract, Vinacomin is scheduled to deliver 350,000 tonnes of coal to the cement industry during the first quarter, 400,000 tonnes during the second, 350,000 tonnes in the third and 400,000 tonnes in the forth.

During the first nine months of the year, the group delivered 1.18 million tonnes of coal to the cement sector, a slight increase compared with the 1.1 million tonnes they were supposed to provide in accordance with the contract.

Representatives from Vinacomin have relied on these facts to argue that they are not responsible for the cement sector's lack of coal. The group will continue to deliver the coal on schedule until the end of this year.

Le Minh Chuan, Vinacomin's deputy general director, said coal demand for the cement sector rose 20 per cent this year, from 1.25 million tonnes last year to 1.5 million tonnes.

On September 14, the cement industry asked the group to provide 170,000 more tonnes of coal to the sector during the month, a 50 per cent increase month-on-month, the representative said.

Vinacomin agreed to deliver 112,000 tonnes of coal this month and 100,000 tonnes during the next two months.

The group will provide 5.8-5.9 million tonnes of coal, which will allow Vicem to produce 50 million tonnes of cement this year.

Vinacomin said Vicem should utilise new technical and technological solutions and use coal reasonably to deal with its shortage.

The cement factories should sign contracts to purchase coal before building their factories because if they do not have coal contracts then they would create problems for themselves and coal producers, said a representative from Vinacomin. — VNS

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Rice exports up in both quantity and value

The Vietnam Food Association (VFA) expects a boost in earnings from rice exports as world demand and prices surge.

VFA President Truong Thanh Phong said rice exporters have so far this
year earned 2.56 billion USD from exporting over 5.5 million tonnes of
rice, representing an increase of over 14 percent in value and almost 12
percent in quantity over the previous year.

Vietnam
is among a few major rice exporters to enjoy such a rosy situation,
with Thailand , India and Pakistan suffering a decrease in rice
exports.

Abnormal climatic conditions caused bad
harvests in many countries. Indonesia , for example, had to drop its
plan to export rice and was forced to import food instead due to bad
harvests. In September alone, the Islamic country imported 300,000
tonnes of rice from Vietnam and 200,000 tonnes from Thailand .

Rice reserves in Africa are depleting, pushing the continent towards
importing rice. Poor harvests in many republics of the former Soviet
Union have inflated world wheat prices and shifted some demand from
wheat to rice, causing more pressure on world rice prices, said
economists.

FOB prices for Vietnamese rice averaged
422.67 USD per tonne in the first nine months of the year, up by 16.43
USD year on year

Rice exporters have signed contracts
of 6.8 million tonnes against 6.5-6.6 million tonnes previously planned
for the whole year.

Enterprises are expected to sign
contracts for the export of an additional 3 million tonnes of rice and
ship another 2 million tonnes in the fourth quarter of the year.

As a result, Vietnam is likely to export between 7.2 and 7.5
million tonnes of rice this year, breaking its record of 6 million
tonnes in 2009./.

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Yearly seafood exports to earn 4.8 bln USD

Vietnam is expected to earn more than 4.8 billion USD from the export
of 1.3 million tonnes of aquatic products this year, according to the
Ministry of Agriculture and Rural Development.

Of which, tra fish brought in over 1.3 billion USD from 630,000 tonnes.

The
Ministry attributed the positive signals in Vietnamese seafood exports
to the economic recovery of several countries, especially developed
economies, which has slightly upped the sales of seafood globally.
According to the United Nations Food and Agriculture Organistion (FAO),
the volume of seafood on the world market in 2010 is estimated at around
52.8 million tonnes, in comparison with 52.5 million tonnes in 2009.

However, Vietnam ’s seafood export processing businesses face a lack of seafood products for processing.

To
increase supplies, Vietnam has targeted an output of between 6.5-7
million tonnes of aquatic products, 65–70 percent of them aquaculture,
as set in the country’s aquatic development strategy till 2020.

In
the first nine months of this year, the country earned 3.5 billion USD
from aquatic exports. Japan remains Vietnam ’s largest consumption
market. It is closely followed by the United States , the Republic of
Korea , Germany , Spain and China .

In addition to its
major and traditional markets, Vietnamese seafood is now also widely
available in many Latin American countries./.

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Poor fuel management costs millions

Poor fuel forecasting and lack of communication had caused Vietnam to spend valuable foreign currency on importing petrol while domestic petrol was in oversupply, the Ministry of Industry and Trade said this week.

It has also contributed to Vietnam National Petroleum Corporation (Petrolimex) losing US$41 million in exchange rates so far this year.

Deputy Minister Nguyen Cam Tu said only 9 out of 11 petrol enterprises had bought petrol produced by Dung Quat Oil Refinery this year, using only 30-40 percent of its production capacity.

Petrolimex, which accounted for 60 percent of the country's market share of petrol, had been expected to buy 28 percent of Dung Quat's output, but had only bought 19 percent.

Tu explained that the reason for the high imports was a shortfall last year when the new refinery had failed to reach its production target due to teething problems and as a result petrol traders had had to import petrol in order to ensure supply.

This year, traders had again signed contracts to import fuel, hedging against the same thing happening again at the refinery, but the plant had ironed out its problems.

Since August it had been producing to its design capacity, which was equal to 6.5 million tonnes a year, or 30 percent of the country's needs, exceeding its own yearly plan by 25 percent.

Thus while local production was up, local demand was down as domestic traders would suffer heavy losses if they cancelled their import contracts.

The differences in exchange rates had already caused Petrolimex a loss of VND800 billion ($41 million) since the beginning of the year.

To address the problem, PetroVietnam would plan and work with petrol traders to limit stockpiled petrol and restrict imports.

In the meantime, Petrolimex had targeted to double petrol consumption from the refinery in the next three months and six out of 11 petrol importers had sought to reduce their imports to 700,000cu. m.

To date, the plant had processed 4.98 million tonnes and sold 4.74 million tonnes; in particular 4,500 tonnes of aviation fuel Jet A1 fuel was sold to PB Singapore Petroleum Company.

The country had imported 7.84 million tonnes in the first nine months, or 67.6 percent of its forecast consumption for the year.

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Poor fuel management costs millions

Poor fuel forecasting and lack of communication had caused Vietnam to
spend valuable foreign currency on importing petrol while domestic
petrol was in oversupply, the Ministry of Industry and Trade said this
week.

It has also contributed to Vietnam National
Petroleum Corporation (Petrolimex) losing 41 million USD in exchange
rates so far this year.

Deputy Minister Nguyen Cam Tu said
only 9 out of 11 petrol enterprises had bought petrol produced by Dung
Quat Oil Refinery this year, using only 30-40 percent of its production
capacity.

Petrolimex, which accounted for 60 percent of
the country's market share of petrol, had been expected to buy 28
percent of Dung Quat's output, but had only bought 19 percent.

Tu explained that the reason for the high imports was a shortfall last
year when the new refinery had failed to reach its production target due
to teething problems and as a result petrol traders had had to import
petrol in order to ensure supply.

This year, traders had
again signed contracts to import fuel, hedging against the same thing
happening again at the refinery, but the plant had ironed out its
problems.

Since August it had been producing to its design
capacity, which was equal to 6.5 million tonnes a year, or 30 percent
of the country's needs, exceeding its own yearly plan by 25 percent.

Thus while local production was up, local demand was down as domestic
traders would suffer heavy losses if they cancelled their import
contracts.

The differences in exchange rates had already
caused Petrolimex a loss of 800 billion VND (41 million USD) since the
beginning of the year.

To address the problem, PetroVietnam would plan and work with petrol traders to limit stockpiled petrol and restrict imports.

In the meantime, Petrolimex had targeted to double petrol consumption
from the refinery in the next three months and six out of 11 petrol
importers had sought to reduce their imports to 700,000cu. m.

To date, the plant had processed 4.98 million tonnes and sold 4.74
million tonnes; in particular 4,500 tonnes of aviation fuel Jet A1 fuel
was sold to PB Singapore Petroleum Company.

The country
had imported 7.84 million tonnes in the first nine months, or 67.6
percent of its forecast consumption for the year./.

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Coffee exports soar with spike in global demand

Workers dry coffee before processing. Rising global demand has pushed revenue from Vietnamese coffee exports to its highest level in two years. — VNA/VNS Hong Ky

HA NOI — Rising global demand has pushed the price fetched by Vietnamese coffee exporters to its highest level in two recent years, according to the Viet Nam Coffee and Cocoa Association.

The price of coffee exported from Central Highland provinces stood at about VND30.2 million (US$1,550) per tonne, the association announced on Monday.

Coffee exports in September totalled $100 million, on a volume of 700,000 tonnes.

Export value in the first nine months of the year reached $1.32 million, an increase of just 0.9 per cent over the same period a year ago, while volume only climbed to 925 million tonnes, an increase of 4.2 per cent.

These results exploded expert predictions at the beginning of the year that total coffee exports in 2010 would struggle to reach VND1 billion ($50,000) due to low global prices.

Germany has become the leading importer of Vietnamese coffee, buying up 13.5 per cent of total Vietnamese coffee exports. The US, the Philippines and Russia are also leading markets.

Coffee growers, meanwhile, hope to harvest over a million tonnes of coffee before the end of the year, a yield 2.5 per cent higher than last year's. Global yield so far in 2009-10 has totalled only 1.26 million tonnes, contributing to the spike in prices, with global exporters shipping only 78.5 million tonnes between October 2009 and July of this year.

An expert from the Viet Nam Coffee and Cocoa Association, Doan Trieu Nhan, expected prices to remain stable through the end of the year at around $1,700-1,800 per tonne. — VNS

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UK port operators seek opportunities

HA NOI — Situated at the crossroads of maritime trade lanes with a coastline stretching 3,260 kilometres, Viet Nam has undeniably favourable conditions for developing its maritime industry.

British Ambassador Mark Kent emphasised this opportunity during the UK – Viet Nam Partnership in Ports seminar held yesterday in Ha Noi. The event was part of a three-day trip made by representatives from 10 UK's leading companies in port operation and development.

"British companies such as those involved in this mission are keen to forge partnerships that will help to identify and implement solutions aimed at improving the operating capacity of Vietnamese ports in the process of national industrialisation and modernisation," the ambassador said. Marine transport has played an important role in the country's economic growth and in its efforts to become an industrialised country by 2010, said Deputy Minister of Transport Do Hong Truong.

The Government has crafted policies to encourage domestic and foreign individuals and organisations to invest in Viet Nam's seaport infrastructure, he said.

During the event, the UK seaport operators shared experiences in port operation as well as exchanged knowledge and potential co-operation opportunities with around 60 Vietnamese and foreign companies operating in the port field.

Prime Minister Nguyen Tan Dung has approved the Viet Nam Seaport Development Master Plan, which calls for a total investment of between VND360 trillion (US$18.5 billion) and VND440 trillion ($22.5 billion) by 2020. Under the plan, the estimated volume of goods transported annually via the seaport system will be 500-600 million tonnes by 2015, 900-1,000 million tonnes by 2020 and 2,100 million tonnes by 2030.

To achieve that number, the plan will focus on developing several international-standard deep-water ports that can receive large ships, especially the international Van Phong transit port in central Khanh Hoa Province designed to receive container ships ranging between 9,000 and 15,000 TEU (twenty-foot equivalent unit). — VNS

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Poor fuel management costs millions

HA NOI — Poor fuel forecasting and lack of communication had caused Viet Nam to spend valuable foreign currency on importing petrol while domestic petrol was in oversupply, the Ministry of Industry and Trade said this week.

It has also contributed to Viet Nam National Petroleum Corporation (Petrolimex) losing US$41 million in exchange rates so far this year.

Deputy Minister Nguyen Cam Tu said only 9 out of 11 petrol enterprises had bought petrol produced by Dung Quat Oil Refinery this year, using only 30-40 per cent of its production capacity.

Petrolimex, which accounted for 60 per cent of the country's market share of petrol, had been expected to buy 28 per cent of Dung Quat's output, but had only bought 19 per cent.

Tu explained that the reason for the high imports was a shortfall last year when the new refinery had failed to reach its production target due to teething problems and as a result petrol traders had had to import petrol in order to ensure supply.

This year, traders had again signed contracts to import fuel, hedging against the same thing happening again at the refinery, but the plant had ironed out its problems.

Since August it had been producing to its design capacity, which was equal to 6.5 million tonnes a year, or 30 per cent of the country's needs, exceeding its own yearly plan by 25 per cent.

Thus while local production was up, local demand was down as domestic traders would suffer heavy losses if they cancelled their import contracts.

The differences in exchange rates had already caused Petrolimex a loss of VND800 billion (US$41 million) since the beginning of the year.

To address the problem, PetroVietnam would plan and work with petrol traders to limit stockpiled petrol and restrict imports.

In the meantime, Petrolimex had targeted to double petrol consumption from the refinery in the next three months and six out of 11 petrol importers had sought to reduce their imports to 700,000cu. m.

To date, the plant had processed 4.98 million tonnes and sold 4.74 million tonnes; in particular 4,500 tonnes of aviation fuel Jet A1 fuel was sold to PB Singapore Petroleum Company.

The country had imported 7.84 million tonnes in the first nine months, or 67.6 per cent of its forecast consumption for the year. — VNS

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Ministry mulls curbs on cement production

The Dien Bien Cement Plant began operations in the northern province of Dien Bien this month. — VNA/VNS Photo Manh Thanh

HA NOI — The Ministry of Construction plans to propose to the Prime Minister a suspension in the licensing of new cement production projects to limit the sector's overheated development, and unnecessary waste of energy.

Vu Quang Diem, Deputy Director of the Ministry's Building Materials Department, said in terms of the building materials production sector, the cement sector was the most energy-inefficient.

For each million tonnes of cement produced, the power sector had to supply 90-95 million kWh, Diem said.

The rapid growth of the building materials production industry, including the cement sector, had put pressure on infrastructure, especially the power sector, Diem said.

The most worrying problem was the number of new cement projects, many of which were inefficient and used out-of-date technology, would continue to rapidly increase if management was not tightened, he said.

The boom would lead to a waste of energy and harm the environment, he added.

The Department was developing a plan for cement sector development until 2015, with an orientation to 2025 to submit to the Government.

The ministry proposed a suspension of investment in 13 projects which had been approved in Prime Minister's Decision 108/2005/QD-TTg issued in 2005, but had not been carried out or would be harmful to the environment if continued.

As an alternative, the authority petitioned the Prime Minister to agree to the construction of nine projects which had more favourable local conditions and would have a significantly beneficial affect on the development of the region where they were located.

The ministry also asked for stricter punishment on projects that failed to meet schedules.

The head of the ministry's Department of Science, Technology and Environment, Nguyen Trung Hoa, said that it was difficult to compel enterprises to spend hundreds of millions of US dollars to renew technology.

Therefore it was necessary to offer preferential lending policies, so that companies would find it easier to access loans to upgrade energy-saving technology, he said, adding that a raft of complicated administrative procedures was one of obstacles that made companies hesitate when considering upgrading their technology.

The Government should strictly implement the regulation that forced cement factories to re-use exhaust fume heat discharged to generate power, as the temperature of the exhaust fumes could reach up to 370 degrees Celsius, Hoa said.

If factories could take advantage of this energy source, they could save 30 per cent of the electricity they consumed, he added.

Although the policy had been outlined in Decision 108, many enterprises had not been interested in it, Hoa said.

Diem suggested that the Government only license new projects which included the construction of a power generator using exhaust fumes.

According to the ministry, by the end of 2009, total design capacity of all cement factories nationwide was 57.4 million tonnes per year, which could fully satisfy domestic consumption demand. However, this year, total capacity had added an additional 11.7 million tonnes to output. — VNS

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Philippines remains Vietnam’s largest rice importer

The Philippines remains Vietnam ’s largest rice importer which
accounts for nearly 41 percent of the country’s total export value,
according to the Ministry of Agriculture and Rural Development (MARD).

In the first nine months of this year, Vietnam
shipped a record 5.55 million tonnes of rice worth 2.56 billion USD, up
nearly 12 percent in volume and 14.5 percent in value.

The price of Vietnamese rice in the first eight months reached 470
USD per tonne, up 3 percent over the same period last year. The price
hike was attributable to scanty supplies resulting from consecutive
natural disasters in large rice consumers and exporters such as China ,
Thailand and Pakistan .

The Vietnam Food Association (VFA) forecast that Vietnam is likely to export 7.2 million tonnes of rice this year.

According to the MARD’s Cultivation Department, the country’s total
rice output in 2010 is expected to exceed 39 million tonnes. Of which,
around 1.5 million tonnes of rice will be reserved for exports.

At present, it is necessary to encourage rice exports as the domestic rice supplies are abundant, the department said./.

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Plans accelerated for refinery projects

Photo: Tuoi Tre

The State Steering Committee on Key Oil and Gas Projects has reviewed their work concerning the first oil refinery in Dung Quat and other projects, and developed plans and timelines for their completion.

The National Oil and Gas Group was assigned to take measures to effectively manage and operate the US$3 billion Dung Quat Oil Refinery.

The ministries of Construction and Finance were asked to help with measures to quickly reach a balanced budget. The committee asked provincial authorities in Quang Ngai to focus on management support for resettlement and compensation.

The Dung Quat refinery has a designed capacity of 6.5 million tonnes of crude oil annually, or more than 140,000 barrels per day. Capacity is expected to expand to 10 million tonnes per year by 2013-14.

The refinery project began in the 1980s and came into operation in early 2009. As of last month, the refinery is operating at its full designated capacity. More than 5.7 million tonnes of crude oil have been imported for the refinery to produce 4.98 million tonnes of high-quality products.

However, investors and contractors still had to work to fix technical problems and strike a balanced budget, said Deputy Prime Minister Hoang Trung Hai, who chaired the meeting.

The meeting also discussed measures to complete the investment mechanism for the Nghi Son Petrochemical Refinery in Tinh Gia District, in the central province of Thanh Hoa. The procedures for ground clearance and infrastructure construction are also being sped up for the project.

Construction of Nghi Son Refinery, Vietnam's second planned refinery, is expected to start this year and become operational by 2013. More than 90 percent of the required area for the $6 billion project have been cleared.

Authorised bodies are conducting the necessary negotiations and evaluating the project's environmental impact report.

The refinery has a designed capacity of 10 million tons of crude oil per year with possibility to expand to 20 million tons.

Preparation activities for initial investment in the Southern Petrochemical Refinery complex, the third of its kind in the country, have also discussed. The national steering committee asked relevant bodies to boost their management of completed projects and to review completion plans for others.

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Plans accelerated for refinery projects

The State Steering Committee on Key Oil and Gas Projects on Sept. 13
reviewed their work concerning the first oil refinery in Dung Quat and
other projects, and developed plans and timelines for their completion.

The National Oil and Gas Group was assigned to take measures to
effectively manage and operate the 3 billion USD Dung Quat Oil Refinery.
The ministries of Construction and Finance were asked to help with
measures to quickly reach a balanced budget. The committee asked
provincial authorities in Quang Ngai to focus on management support for
resettlement and compensation.

The Dung Quat
refinery has a designed capacity of 6.5 million tonnes of crude oil
annually, or more than 140,000 barrels per day. Capacity is expected to
expand to 10 million tonnes per year by 2013-14.

The refinery project began in the 1980s and came into operation in early
2009. As of last month, the refinery is operating at its full
designated capacity. More than 5.7 million tonnes of crude oil have been
imported for the refinery to produce 4.98 million tonnes of
high-quality products.

However, investors and
contractors still had to work to fix technical problems and strike a
balanced budget, said Deputy Prime Minister Hoang Trung Hai, who chaired
the meeting.

The meeting also discussed measures
to complete the investment mechanism for the Nghi Son Petrochemical
Refinery in Tinh Gia District, in the central province of Thanh Hoa. The
procedures for ground clearance and infrastructure construction are
also being sped up for the project.

Construction of
Nghi Son Refinery, Vietnam's second planned refinery, is expected to
start this year and become operational by 2013. More than 90 percent of
the required area for the 6 billion USD project have been cleared.
Authorised bodies are conducting the necessary negotiations and
evaluating the project's environmental impact report.

The refinery has a designed capacity of 10 million tonnes of crude oil
per year with possibility to expand to 20 million tonnes.

Preparation activities for initial investment in the Southern
Petrochemical Refinery complex, the third of its kind in the country,
were also discussed yesterday. The national steering committee asked
relevant bodies to boost their management of completed projects and to
review completion plans for others./.

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Plans accelerated for refinery projects

Dung Quat Oil Refinery operates at full capacity. Measures to speed up implementation and upgrades of key oil and gas projects is being discussed by the government. — VNA/VNS Photo Thanh Long

HA NOI — The State Steering Committee on Key Oil and Gas Projects yesterday reviewed their work concerning the first oil refinery in Dung Quat and other projects, and developed plans and timelines for their completion.

The national petroleum group was assigned to take measures to effectively manage and operate the US$3 billion Dung Quat Oil Refinery. The ministries of Construction and Finance were asked to help with measures to quickly reach a balanced budget. The committee asked provincial authorities in Quang Ngai to focus on management support for resettlement and compensation.

The Dung Quat refinery has a designed capacity of 6.5 million tonnes of crude oil annually, or more than 140,000 barrels per day. Capacity is expected to expand to 10 million tonnes per year by 2013-14.

The refinery project began in the 1980s and came into operation in early 2009. As of last month, the refinery is operating at its full designated capacity. More than 5.7 million tonnes of crude oil have been imported for the refinery to produce 4.98 million tonnes of high-quality products.

However, investors and contractors still had to work to fix technical problems and strike a balanced budget, said Deputy Prime Minister Hoang Trung Hai, who chaired the meeting.

The meeting yesterday also discussed measures to complete the investment mechanism for the Nghi Son Petrochemical Refinery in Tinh Gia District, central Thanh Hoa Province. The procedures for ground clearance and infrastructure construction are also being sped up for the project.

Construction of Nghi Son Refinery, Viet Nam's second planned refinery, is expected to start this year and become operational by 2013. More than 90 per cent of the required area for the $6 billion project have been cleared. Authorised bodies are conducting the necessary negotiations and evaluating the project's environmental impact report.

The refinery has a designed capacity of 10 million tonnes of crude oil per year with possibility to expand to 20 million tonnes.

Preparation activities for initial investment in the Southern Petrochemical Refinery complex, the third of its kind in the country, were also discussed yesterday. The national steering committee asked relevant bodies to boost their management of completed projects and to review completion plans for others. — VNS

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China cassava processors seek partners

More than 30 Chinese cassava importers and suppliers of cassava
processing technology met local businesses on Sept.7 in HCM City to
exchange information and seek business partners.

The meeting was arranged by the Trade Promotion Agency under the
Ministry of Industry and Trade, the China Trade Office in Vietnam ,
the China Cassava Starch Industry Association and the Vietnam-China
Trade Promotion Centre.

Cassava, an edible root, has
become an increasingly profitable export for Vietnam due to growing
demand in foreign markets, said Le Xuan Duong of the Trade Promotion
Agency.

Mainland China is the biggest importer of
Vietnamese cassava, accounting for 90 percent of the industry's export
volume, followed by the Republic of Korea and Taiwan , Duong
said.

With the huge demand for cassava used to produce
food, animal feed and ethanol-blended petrol, China every year needs
to import more than six million tonnes of cassava to meet its
production needs, he said.

Vietnam has more than
500,000ha under cassava cultivation and an output of more than nine
million tonnes of fresh cassava a year.

Of this, it annually exports more than four million tonnes after meeting domestic demand.

Vietnam 's cassava exports are mostly starch powder and dried chips, Duong said.

Last year, the country earned 800 million USD from cassava exports, double that of pepper shipment revenues.

However, Vietnam was only able to export 1.14 million tonnes of
cassava worth 307 million USD in the first six months of this year, down
52.4 percent in volume and 12.8 percent in value compared to the same
period last year.

Duong attributed this decline mainly to local traders setting prices too high, pushing importers to buy from other countries.

Wen Yu Ping, Chairwoman of the China Cassava Starch Industry
Association, said China was a huge market for cassava chips and
starch, but most cassava products in Vietnam were produced on a
small-scale, making it difficult for Chinese importers to purchase in
large volumes. She suggested that the Vietnamese Government regulates
standards for cassava export and reduce the number of brokers involved
in purchasing the products. These measures will facilitate import,
export activities between two sides, she said.

Until
recently, people were reluctant to grow cassava because they thought
that it caused soil degradation and generated low profit, said Tran Cong
Khanh, an expert from the Institute of Agricultural Science for
Southern Vietnam .

The situation has changed after the introduction of new cultivation techniques and high-yielding varieties, he added.

Cassava is now an important source of income for small farmers in many provinces, Khanh said.

Cassava area and output have increased strongly in the last decade,
from 234,000ha in 2000 to 560,000ha in 2009, with yields increasing from
8.6 tonne per ha in 2000 to 16.8 tonne per ha in 2009.

The crop has helped farmers in many areas escape poverty, Khanh said.

But the rapid development of cassava production has also raised
environmental concerns because the soil is exhausted after two or three
crops.

The sector therefore needs to adopt appropriate
cultivation techniques to maintain output and protect the soil, Khanh
cautioned. /.

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Agriculture sees annual growth of 3.8 percent

The agriculture sector is striving to reach an annual GDP growth rate of 3.5-3.8 percent during the 2010-2015 period.

At the sector’s patriotic emulation conference in Hanoi on August
24, the Deputy Minister of Agriculture and Rural Development Diep Kinh
Tan said that the sector should focus on building a modern and
sustainable agricultural sector which is capable of producing high
quality and competitive commodities in large volumes, while ensuring the
nation’s food security.

The sector plans to achieve
an annual production growth of 4-4.5 percent and an increase in export
turnover of 6.5-7 percent to 21 billion USD per year. It will attempt to
increase forest coverage to 43 percent, realise a seed crop output of
47 million tonnes, including 40 million tonnes of rice, and an annual
seafood output of 4 million tonnes. Farmers per-capita incomes are also
expected to reach 20 million VND per annum.

According to the deputy minister, agriculture is the economic sector to
suffer the most from climate change, disasters, epidemics and
international competition, while the amount of useable land and number
of workers are diminishing.

To reach this target,
Tan said that the sector has put forward a number of solutions on
science and technology, marketing, human resources development and
investments in technical infrastructure and production.

During the 2006-2010 period, the agriculture and rural development
sector made many important achievements in rice, other industrial crops,
animal husbandry and seafood production, earning between 50-200 million
VND, even billions of VND, per hectare per year. Its added value rose
by 3.4 percent per year compared with the Government’s target of 3-3.2
percent.

Also in the reviewed period, Vietnam
exported almost 25 million tonnes of rice worth more than 10 billion VND
and ensured its food security. The nation exported more than 20.6
billion USD of seafood and its forest coverage has risen from 38 percent
in 2006 to 39.8 percent in 2009.

From 2006-2009,
the sector approved 160 ODA projects totalling almost 1.42 billion USD,
of which non-refundable aid made up 45 percent.

A
number of Vietnam ’s agro-forestry and fisheries trademarks are now
firmly established in domestic and foreign markets such as Mekong Delta
tra fish, Vinh Long province’s Nanh Chon rice, Dien Bien rice, Nam Roi
grapefruit and Buon Ma Thuot coffee./.

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