Trade, investment protection deals between EU and VN signed, starting 'new chapter' 

HÀ NỘI – History was made yesterday as Việt Nam and the European Union signed agreements on free trade and investment protection at a ceremony in Ha Noi.

The EU-Vietnam Free Trade Agreement (EVFTA) will ensure the balance of benefits for both Việt Nam and the EU.

Once in effect after the European Parliament approves it, the EVFTA will boost Vietnamese exports, especially agriculture and aquaculture and other products in which Việt Nam has comparative advantages.

The deal is set to cut tariffs on 99 per cent of goods traded between the two sides.

The Europe-Việt Nam Investment Protection Agreement (EVIPA) will ensure the two sides’ businesses and investors are treated fairly.

The EVIPA will also help Việt Nam develop good, transparent investing and legal frameworks in order to draw more foreign capital from the 28 member nations of the EU.

The signing of the two agreements with the EU shows Việt Nam is determined and committed to making deeper integration into the global economy and contributing to its growth, especially in the context of twisted and unpredictable developments in politics and economy.

Việt Nam will have an opportunity to tap the EU markets with total population of 508 million and total gross domestic product (GDP) of around US$18 trillion.

Under the EVFTA, Việt Nam’s exports to the EU market are forecast to rise 4-6 per cent compared to a non-FTA trade relation to reach $19 billion. Its exports are expected to touch $75 billion in 2028.

“The signing of the two agreements has started a new chapter in EU-Việt Nam relations, but there is still work that needs to be done and the best efforts of Việt Nam and the EU are required to resolve them,” said Minister of Industry and Trade Trần Tuấn Anh.

“This (the signing ceremony) is an important event that meets the expectations of Việt Nam and the EU and shows the EU’s high appreciation to Việt Nam,” said Nguyễn Chí Dũng, Minister of Planning and Investment.

The two agreements would drive the two sides’ economic growth and help boost the ASEAN community’s economic relation with the EU and the world, Dũng added.

The two new-generation agreements would assist Việt Nam to accelerate its reform in key issues such as economic growth, administrative framework, labour policy and development sustainability, thus fostering a stable, sustainable and environmentally - friendly market-oriented economy for Việt Nam, he said.

With the agreements taking effect, Việt Nam expected to bring EU investors and businesses and high value-added development projects to the country, create opportunities for Vietnamese companies to approach the EU markets and allow Vietnamese consumers to EU-made purchase products at lower prices, he said.

According to Prime Minister Nguyễn Xuân Phúc, the ratification of the two agreements will upgrade the relationship between Việt Nam and the EU, especially amid rising protectionism and slowing global trade.

“The agreements show the two sides’ long-term visions to set up a win-win relationship as both sides want brighter future of sustainable, peaceful and stable development,” he said.

The Vietnamese Government will soon release a national action plan and ask Government agencies and organisations, businesses and people to commit to the agreements, PM Phúc added.

SMEs, people in focus 

The agreements will open up both EU and Vietnamese markets for small- and medium-sized enterprises (SMEs) and people as the two sides are aligning new rules and trade with less red tape and tariffs, according to Cecilia Mamlstrom, European Commissioner for Trade.

SMEs would be guided to take advantage of the new deals as the EU wants a broader partnership with Việt Nam in a variety of fields, she told reporters.

However, because Vietnamese businesses and people were not as well-developed as their European partners, there would be challenges for the Vietnamese to make best use of the agreements, minister Anh said.

The upcoming national action plan would create better conditions for local businesses and people to access EU regulations, which focus on the quality, technical requirements and safety of the products, the minister added.

He also urged local firms to review their operations to meet the EU’s standards as there would be more trade conflicts between them and overseas companies.

APL introduces new Bangkok Haiphong service

Container carrier APL has announced a new Bangkok Haiphong (RBH) service connecting South China, Thailand and Vietnam.

The weekly RBH express service will have an alternative sailing choice from China’s Shekou to Thailand’s Laem Chabang. The service also offers shippers direct connectivity from Bangkok and Laem Chabang to Haiphong.

The RBH service will start operation from Nansha on 3 July.

The port rotation will be Nansha, Shekou, Laem Chabang, Bangkok, Laem Chabang, Haiphong and back to Nansha.

Yang Ming adjusts Asia service amid ongoing trade war

Yang Ming Marine Transportation Corp has announced a reorganization of its Asian service network in view of the “rising global trade tensions”.

“Under the impact of rising global trade tensions, a relocation and adjustment of cargo flow and supply chains is expected,” the Taiwanese container carrier said in a statement.

“Yang Ming has announced the launch of a new intra-Asia service, China-Thailand service (CTX service). The first sailing is scheduled for 12 July 2019, departing from Shanghai,” it said.

The months-long trade tensions between the US and China have fuelled concerns that escalating tariffs could undermine a pickup in the global economy.

The new CTX service will see a deployment of three 1,200-teu container vessels, of which one is contributed by Yang Ming and two by CMA CGM’s APL.

APL has also announced the introduction of its new weekly Bangkok Haiphong (RBH) service with an alternative sailing choice from China’s Shekou to Thailand’s Laem Chabang.

Excluding the alternative sailing to Shekou, the ports of call for the 21-day round trip CTX service are Shanghai, Ningbo, Xiamen, Laem Chabang, Bangkok, Laem Chabang, Hong Kong, and back to Shanghai.

“Through vessel deployment and slot exchange cooperation, Yang Ming provides a total of seven services in Thailand,” Yang Ming said.

OOCL Improving Vessel Storage with Navis Tools

Hong Kong-based Orient Overseas Container Line (OOCL) has chosen Navis, a part of Cargotec Corporation, to provide stowage planning software StowMan to its entire fleet.

The fleet of over 100 containerships, ranging from 2,900 to 21,400 TEU, are planned by stowage planners who are based in strategic planning regions.

With the multifunctional stowage operation system of StowMan, vessel planners will be able to optimize the stowage planning results for fleet utilization based on improved visibility and efficiency, Navis explained.

StowMan is capable of utilizing the results of the stability and stress calculations, slot definitions and lashing rules as well as dangerous goods segregation and stowage rules produced by the onboard loading computer MACS3, which parts of the OOCL fleet are equipped with, Navis continued.

In February 2019, with the help of StowMan, ONE has broken the last reported world record for the largest amount of cargo ever stowed, carrying over 19,100 TEU onboard the MOL Tribute. The record load surpasses the record previously announced by Maersk at 19,038 TEU, achieved in August 2018.

MSC Hires MacGregor for Cargo Systems Upgrade on Six Ships

Swiss container shipping major MSC Mediterranean Shipping Company has signed a contract with MacGregor and Guangzhou Wenchong Dockyard to upgrade cargo systems on six 16,000 TEU containerships owned and operated by the company.

The upgrades will be implemented during drydocking in 2020, the parties said without revealing any further contractual details.

MacGregor and MSC have together defined and developed the cargo system solution for these vessels.

“The objective was to determine the best solution for the operating profile and to deliver a modern, efficient and environmentally-friendly upgraded cargo system,” Magnus Sjöberg, Senior Vice President, Cargo Handling and RoRo, MacGregor, said.

“MacGregor’s Cargo Boost is a good example how we can drive down the energy required to transport each individual container and reduce emissions per transported TEU,” Giuseppe Gargiulo Head of Department, New Building, Dry Dock and Conversions, MSC Mediterranean Shipping Company, concluded.

Maersk to Address Overbookings with New Digital Product

Danish shipping giant Maersk has introduced Maersk Spot, a new fully digitally enabled, online product that can break the cycle of overbookings and offer a much simpler way to ship a container with load guarantee.

With the launch of the new product, Maersk said it takes further steps towards simplifying the supply chains of its customers by addressing some of the fundamental inefficiencies that exist across the industry.

“It is not uncommon to see overbookings to the tune of 30%, and often this leads to rolling of the customers’ cargoes since there is overbooking to compensate for the high downfall. This creates a lot of uncertainty for our customers,” Silvia Ding, Global Head of Ocean Products at Maersk, explained.

“With Maersk Spot, we provide full visibility of the price and terms that will ensure cargoes get on board. Ultimately allowing customers to move their cargo in a much simpler and more reliable way,” Ding added.

With Maersk Spot, customers can search and get rates online 24/7, according to the company. The all-in price is calculated and fixed when the booking is confirmed, which happens instantly. This dynamic online pricing fixed at booking creates one transaction for the customer from quotation to booking confirmation, simplifying the buying process.

“Maersk Spot … simplifies the buying experience for our customers. Today’s offline process can be up to 13 individual steps, often involving a lot of communication and paper work from rate sheets to terms and conditions and surcharges, etc. With Maersk Spot, this cumbersome process is reduced to five simple and integrated steps – all online,” Ding further said.

Specifically, when a booking is confirmed by the customer, Maersk commits to load and grants certainty in operational execution. This is a mutual commitment between the customer and Maersk which ensures that the vicious cycle of overbookings is addressed. In case of booking cancellations, fees apply at the customer’s charge. If cargo is rolled, Maersk compensates the customer.

As informed, the mutual commitment paired with increased visibility of sailings and certainty of prices has been to date embraced by more than 3,000 customers each week, with already over 50,000 Forty-Foot-Equivalent (FFE) units booked in Q2.

Maersk Spot is now available on all trades, except in and out of US. Currently available as BETA site, the product will be implemented on Maersk website at the beginning of August.

Moody’s: Global Shipping Earnings Set to Increase

The outlook for the global shipping sector into 2020 will remain stable despite geopolitical and trade uncertainties, according to rating agency Moody’s.

This is because higher expected earnings are counterbalanced by US/China trade tensions and worldwide regulatory risks, Moody’s Investors Service said in a new report.

As explained, the key drivers of the stable outlook are a combination of anticipated EBITDA growth of 16%-18% into 2020 and largely balanced demand and supply growth.

These positives are offset by downside risks from protectionist trade policies and increasing regulation.

“The global shipping industry is facing a number of challenges into 2020, including the effects of IMO 2020, which will likely lead to rising fuel costs, as well as geopolitical uncertainties, such as trade conflicts, especially the US-China trade dispute,” Maria Maslovsky, a Moody’s Vice President – Senior Analyst, commented.

Furthermore, the outlook on the tanker segment has been revised to stable from negative with charter rates rising as demand improves and oversupply becoming less of an issue as a result of reduced ordering and increased idling, Moody’s added.

Prime Minister Phuc joins activities at 14th G20 Summit

Prime Minister Nguyen Xuan Phuc has attended several sessions during the 14th G20 Summit that opened in Osaka Japan on June 28 

Prime Minister Nguyen Xuan Phuc (front, centre) at the first session of the 14th G20 Summit 

Following a welcome ceremony in the morning, leaders of G20 members and guest countries, engaged in a thematic discussion on the digital economy presided over by Japanese Prime Minister Shinzo Abe.

The session adopted the Osaka statement on the digital economy, which stressed the huge potential and significance of the digital economy, and agreed to enhance international cooperation in order to facilitate the development of the digital economy, optimise benefits brought about by the digital economy and emerging technologies, and ensure security and safety in the digital economy.

During the first session, the leaders looked into the global economic, trade and investment situation and prospects.

They shared the views that although the global economy basically remained stable, growth remains sluggish with substantial risks.

The leaders affirmed that they will continue to use and combine policy tools to spur sustainable, balanced and inclusive growth, consolidate trust and prevent risks.

Given the complex development of the global trade tensions, leaders of many countries advocated international cooperation and called for efforts to fight protectionism, promote economic, commercial and investment connectivity, push ahead with reforming the WTO, maintain and consolidate the multilateral trade system.

They also underlined the need to step up collaboration in mobilising and using resources for high-quality infrastructure development effectively, thus contributing to global economic growth.

Addressing a working session on innovation in the afternoon, PM Phuc said Vietnam has regarded the digital economy as one of the major growth engines, and will issue a strategy on national digital transformation in late 2019.

He welcomed the initiative raised by Japanese PM Shinzo Abe of free data flows with trust, and suggested forming global legal framework and regulations on data flows and management.

Vietnam and other member countries of the Association of Southeast Asian Nations (ASEAN) stand ready to cooperate with G20 member countries to encourage innovations and optimize economic benefits brought about by the digital economy while ensuring compliance to local and international law, he said.

PM Phuc also lauded G20’s approach of people-centred AI development, and proposed promoting the formation of a global network of innovative centres, including those engaging in AI research and development, in order to increase the sharing of knowledge and new technologies, and help developing countries make use of opportunities created by innovations and AI, thus ensuring that no one will be left behind and for peace and sustainable development in the digital era.

Later the same day, PM Phuc and other leaders attended a banquet hosted by PM Shinzo Abe.

The G20 summit will continue with discussions on sustainable development, employment, women, health care, environment, energy and climate change on June 29.

Cases of making false documents to illegally import scrap

VCN- The violation of Vinh Thanh Joint Stock Company (in Hung Yen) in using false documents and reusing the Notification letter of the Department of Natural Resources and Environment of Hung Yen province to illegally import thousands of tons of scrap caused major concern. This is not the only case and Customs authorities have detected many other violation cases. 

Making false seal of the Department of Natural Resources and Environment

By strengthening measures to control and prevent violations of scrap imports (especially in 2018), Customs authorities detected many cases of making false documents and dossiers to illegally import scarp.

These are acts of counterfeiting, erasing and revising documents issued by State agencies to legalise dossiers for scrap imports.

A typical example is Duc Dat Import Export Trading Service Co., Ltd (registered in Dong Mai Hamlet, Khanh Hai commune, Yen Khanh district, Ninh Binh province).

According to investigation results, the company made a false certificate of eligibility for scrap import No.1094/GCN-STNMT dated September 14, 2015 of the Department of Natural Resources and Environment of Ninh Binh province and made false notifications issued by the Ninh Binh Department of Natural Resources and Environment to submit to the Customs authority when carrying out Customs procedures for scrap imports.

According to the results of a criminal record check conducted by the Division of Criminal Science (the Police of Hai Phong City), the seal of the Ninh Binh Department of Natural Resources and Environment was fake.

The other violations are that companies also falsified the Deposit Certificate of Imported Discarded Materials and the Blocking Certificate to carry out import procedures.

Duc Dat Import and Export Trading Service Co., Ltd and Truong Thinh Private Enterprise made false Deposit Certificate of Imported Discarded Materials issued by banks to carry out import procedures. Through investigation, the related banks confirmed that they did not issue these certificates for these companies.

There are no production facilities, companies still import scrap for production

In other cases, enterprises were granted a certificate of eligibility for discarded materials as production material but Customs detected that these enterprises did have not production facilities or had production facilities but their production capacity was lower than the amount of discarded materials allowed to import and mainly imported for sale to enterprises dealing in recycling scrap that do not comply with the law, causing environmental pollution.

Hong Viet Trading Service Construction Production Co., Ltd (Ward 4, District 4, Ho Chi Minh City) imported scrap then sold it to domestic businesses such as Yen Hung Co., Ltd in Hai Phong City.

Bao Phuoc Co.,Ltd imported scrap but it does not have the production facility and only sells and consumes scrap in the domestic market.

In some other cases, enterprises imported scrap exceeding the limits granted by the Ministry of Natural Resources and Environment or the Department of Natural Resources and Environment.

Hong Viet Trading Service and Construction Production Co., Ltd is also a typical company to carry out this violation.

Accordingly, the company imported scrap steel in excess of 984 tonnes compared to the total licensed quantity and imported plastic scrap in excess of 64,249 tonnes compared to the total quantity licensed by the Department of Natural Resources and Environment of Ben Tre province.

Huong Quynh Cam Hung Company Limited (in Hai Duong) was only approved for production capacity of about 3,600 tonnes of scrap but this company imported up to 58,500 tonnes, exceeding the licensed capacity to 54,900 tonnes (more than 15 times the designed capacity).

The customs authority also discovered violations like falsely declaring the name and codes of goods to import to not subject to the management policies for scrap; revising information on name of goods, destination place in the bill of lading in the e-manifest to change the operation area and change the name of the goods to avoid the Customs inspection and control; hiding goods banned from import, temporarily suspended from import in imported scrap shipments.

President Trump targets Vietnam in latest trade war attack

In an interview with Fox Business on Wednesday, President Trump went after Vietnam, alleging that the country has taken advantage of the US-China trade war to benefit itself.

“Vietnam takes advantage of us even worse than China,” Mr Trump said. He added that Vietnam was “almost the single worst abuser of everybody.”

Mr Trump appeared to be referring to the fact that some companies had decided to move their operations from China to Vietnam as a result of the trade war, rather than back to the US as he had hoped. Mr Trump declined to say definitively whether the US was considering imposing tariffs on Vietnam’s exports to the US, saying only that the two countries are “in discussions.”

Experts have been calling Vietnam a winner in the trade war between the US and China: companies have avoided tariffs on Chinese goods by re-routing a large percentage of their orders to Vietnam. Some have raised the specter of currency manipulation. A recent report from the Wall Street Journal accuses Vietnam of transshipment: citing a sharp increase in Chinese exports to Vietnam and a concurrent increase in Vietnam’s exports to the US of the same goods (mostly electronics, computers, machinery, and other equipment), the WSJ said Vietnam might have been repackaging imported goods from China and exporting them to the US as products originating from Vietnam.

According to the U.S. Trade Representative, the U.S. imported $47.8 billion of Vietnamese goods and services last year, while it exported $10.5 billion’s worth. President Trump has often criticized countries that maintain a trade surplus with the US, saying that they have taken advantage of the US at the expense of American workers.

Ending liner alliances would lead freight rates to 'skyrocket': TOC Europe

‘Be careful what you wish for’ was in essence the warning delivered to those shippers who seek an end to liner alliances by a container analyst at the TOC Container Supply Chain event in Rotterdam this week.

Lars Jensen, chief executive and partner of SeaIntelligence Consulting, described calls to end liner alliances on the grounds that they have become anti-competitive – as claimed by an International Transport Forum report earlier this year – “dangerously misplaced” since they would only result in soaring freight rates.

The European Commission is currently considering whether to renew the EU Block Exemption Regulation (BER) covering liner alliances and vessel sharing agreements (VSAs) on container trades to and from Europe, due to expire on 25 April next year. Failure to renew that waiver would involve lines in expensive legal costs that they would be forced to recoup through higher rates, Jensen warned.

“And if shipping alliances are outlawed altogether,” he added, “then freight rates will skyrocket because alliances are the only way that carriers can operate ultra-large container ships (ULCVs) effectively.”

For example, partners Maersk Line and MSC would each have to offer less services and more restricted port rotation on Asia-Europe if their 2M alliance was disbanded and they had to operate their ULCVs independently, he predicted.

And for shippers using all but the most mainline ports, it would mean more transhipment of their cargo and “an enormous jump in freight rates,” he said.Therefore his conclusion is that “shippers should pray that lines are allowed to continue to operate alliances,” he told delegates at the TOC Europe event.
 

CDP: Not enough investment in meeting IMO target

Retrofitting vessels and slow steaming are two short-term options to reduce emissions while more transformative technologies are developed, a new study says.

The world’s largest shipping lines are not investing in the right technologies to reduce their carbon footprints and the sector risks not meeting the International Maritime Organization’s targets of reducing greenhouse gas emissions by 50% by 2050, according to a study released Tuesday by environmental nonprofit and investment research provider CDP.
“A Sea of Change,” which ranked 18 of the largest publicly listed shipping companies representing $62 billion of market capitalization, found Nippon Yusen Kaisha as the most ready for the low-carbon transition. A.P. Møller – Maersk and Mistui O.S.K. Lines (MOL) ranked second and third, with COSCO Shipping Energy Transportation ranking last and NS United ranking just ahead of it.

CDP said Maersk, Hyundai Merchant Marine (fifth) and Norden (sixth) were the “most ambitious in setting long-term targets to reduce carbon emissions” consistent with IMO’s strategy, but “there is a gap between the cutting-edge carbon-neutral technologies available to companies and the forms of innovation they are developing.”
Only three companies are developing technology that could have a transformative impact on the industry, CDP said.

“The level of transformative innovation is extremely low,” the study reads. “With the exclusion of NYK Line, which is collaborating on the development of zero-emission vessels, and Norden and Maersk, which are pioneering biofuel-based carbon-neutral voyages, no other companies are investing in technologies that are considered to be transformative.”
Retrofitting existing fleets could be a capital-efficient short-term strategy before more transformative technologies become viable, CDP said. Fourteen companies showed evidence of retrofitting activity and were led by Maersk’s spending of “$1 billion over a four-year period retrofitting 150 vessels with measures that can deliver emission reductions up to 20%,” the study reads. 
Slow steaming is another short-term solution that companies can use to reduce emissions by up to 30%, CDP said. A speed reduction of 10% to 15% can reduce fuel consumption by 30% to 40% for bulk fleets, with potentially higher reductions for container vessels, according to the study.
Thirteen of the 18 companies have developed slow steaming strategies. Among them, “K” Line, HMM, Euronav and COSCO Shipping Holdings have adopted super slow steaming strategies.

 “Although slow steaming is positive in the short term, it could result in more voyages to meet growing demand, eroding the emission reductions made by slowing down ships,” CDP said.
The shipping sector accounts for between 2% and 3% of global emissions and about 10% of global transport missions, making it one of the least emissions-intensive modes of freight transport based on current technology, CDP said. Container transport is the most emissions-intensive shipping subsector but has achieved the highest emissions reductions across the subsectors, with average reductions of 5.3% between 2012 and 2017. Bulk and tanker emissions have stagnated with emissions from both sectors growing 1% and 0.5% over the same time period, according to CDP.
Carole Ferguson, CDP’s head of investor research, said the shipping industry could account for 17% of global emissions by 2050 if nothing is done due to economic growth. The demand for freight services is expected to increase 3% to 4% annually, CDP said.
“Against the backdrop of the IMO’s targets, the industry needs to drive collaboration with the manufacturers of vessels and shipping technologies to develop the step change innovations needed to have any chance of meeting these goals,” she said. 
The study also found only four companies are official supporters of Mark Carney’s Task Force on Climate-Related Financial Disclosures and just three companies had a formal climate committee at the board level.

Source: World Maritime News, Seatrade Maritime, American Shipper, VN Customsnews, Vietnam News JOC.com