Viet Nam has the highest proportion of female CEOs in the Asia Pacific region at some 25 per cent, much higher than the world average of 10 per cent.

Three Vietnamese female CEOs in the list of 2014 Forbes Asia Power Businesswomen: Mai Kieu Lien, Nguyen Thi Mai Thanh and Nguyen Thi Nga. 

The information was released during a seminar on “Female leaders in banking and financial technology” held early this month in Ha Noi to honour the role of Vietnamese women on the occasion of International Women’s Day, which falls on March 8.

At the event, participants also heard that the banking sector has a relatively high percentage of female employees, accounting for nearly 60 per cent of the sector’s total workforce.

The number of females holding senior positions and leadership roles is on the rise, both in central bank and commercial banks, which shows that women currently play a very important role in the shape and operation the banking system, Deputy Governor of the State Bank of Viet Nam (SBV) Nguyen Thi Hong said.

She added that in recent years, the banking sector, in general, and the SBV, in particular, have undertaken many practical activities to implement the “Action Plan” on gender equality and on the advancement of women in the banking sector in the 2016-2020 period.

To better meet the development requirements of the banking industry in the age of digitisation and international integration, the Committee for the Advancement of Women in the Banking Sector organised the seminar to introduce to the female leaders and employees new trends, challenges and opportunities in the fields of financial technology, digital banking, electronic payment and e-commerce.

However, despite the advantages, there are still barriers that hinder women from reaching management positions and leadership roles, including gender stereotype, over-expectation, balancing work and family life, and poorly supported working environment.

Embracing this reality, Kristy Duncan, founder and CEO of Women in Payments — an organisation that facilitates learning, career development and community building for women working across the payments sphere in the United States, Canada, Australia and beyond — said there was a need for practical solutions to encourage women’s participation in the labour market of all sectors in general and in the finance and banking sector in particular to increase the success of each organisation and company.

Duncan said gender equality issues need to be addressed as a national problem and that there should be specific strategies to develop the role of women leaders in the innovation of the banking sector and financial technology. 

VNS

Foreign business owner returns home, leaving huge debts

The People’s Committee of the southern province of Ba Ria-Vung Tau instructed the Department of Labor, Invalids and Social Affairs to work with authorized agencies to solve problems of steel company Quatron which debt hundreds of billions of dong of wage and premium after its foreign owner get out of the country.

The province granted investment certificate to the foreign invested company in early 2008 to design, process and assemble steel structural products. 

Legal representative Dasagi Vijaya Bhaskara Rao has left home while the man working for the company as director general has not appeared. 

By the end of October last year, Quatron owed 400 workers overVND2.7 billion (US$119,000) in wage and VND15 billion ($660,000) social insurance premiums. In addition, the company has yet to pay VND1.2 billion in tax arrears and overdue loan interest. 

The 80,000 square meter factory the company hired has been mortgaged for bank loans with the total amount of US$3 million.

592 products win high quality Vietnamese goods brand names

Business Studies and Assistance Center (BSA) last night granted certificates of high quality Vietnamese goods brand names 2017 to products of 529 businesses at a ceremony attended by chairman of the HCMC People’s Committee Nguyen Thanh Phong and agency representatives.

At the event, BSA also praised enterprises and entrepreneurs for their performance of social responsibility and contributions to improving the competitiveness of Vietnamese goods. 

Among the winners of the award voted by consumers are Minh Long 1, Co May, Vinamit, Biti’s and others. Of these, 40 businesses have been certificated for 21 consecutive years. 

Ms. Vu Kim Hanh, chairwoman of the High Quality Vietnamese Goods Association, said that the association started building a set of norms on high quality Vietnamese goods in 2017 providing businesses an extra of competitiveness advantage.

Price for natural rubber latex strongly increases

The price trend for fresh natural and finished rubber latex has strongly increased since the end of  2016.

Particularly, a kilogram of natural rubber latex is currently purchased at VND 12,500, an increase of VND 2,200 in Dong Nai province.  

Meanwhile, the Loc Ninh Rubber Company in Binh Phuoc province posted up its rubber latex price at VND 17,400 a kilogram and dry elastic price being at VND 15,400 a kilogram. 

The Phuoc Hoa Rubber Company also buys finished rubber latex with VND 53,000 per kilogram, doubling that in midyear of 2016 and increasing by 10-13 percent compared to the two previous months. 

The output reduction has made the world rubber price to increase by 20 percent compared to the bottom level in June, 2016. 

The  increase of rubber price is due to long–lasting rainy season which caused output reduction in Thailand who had held nearly 40 percent of the world natural rubber in the end of 2016.

Mekong Delta harvests winter spring rice, sell at good prices

Farmers in the Mekong Delta have entered the peak harvest time of winter spring rice crop since March, enjoying good prices.

At present, a kilogram price swings from VND4,900-5,300 depending on wet or dry rice, up VND300-400 on average compared to before the Tet holiday. 

With the cost price of VND3,700-3,800 a kilogram this crop, farmers will earn a profit of about 30 percent if selling price tops VND5,000 a kilogram. 

The Mekong Delta cultivates 1.5 million hectares of winter spring rice with the output estimated to reach 11 million tons.

Creating favourable conditions for rice exports

Vietnam earned US$248 million from exporting 799,000 tonnes of rice in the first two months of 2017, down 40.6% in value and 17.2% in volume compared to the same period last year, according to the Ministry of Agriculture and Rural Development.

These sharp declines are making it more difficult for the target of exporting over 5 million tonnes with a value of approximately US$2.3 billion in 2017 to be achieved, particularly as fluctuations in the export market are seriously affecting the domestic rice industry.

Regarding Thailand’s plan to sell all its rice reserves of about eight million tonnes this year, experts all stated that the move, if it comes true, will lead the rice export prices to continue falling sharply, thereby posing difficulties to the production and consumption of rice of the winter-spring crop, which is considered the major production crop of the year in Vietnam.

Only when Thailand’s rice inventories are definitely handled, can the rice export market probably recover, they noted.

In addition, the rice stockpiles in the world are now at a high level, while a number of traditional rice-importing countries have been effectively implementing the policy of food self-sufficiency, limiting and even ending rice imports. Notably, as competition is getting fiercer with the increasing number of commercial and technical barriers put up by importing nations, it is becoming increasingly difficult for Vietnamese rice to penetrate into markets with a demand for high quality.

Apart from objective reasons, subjective factors inside the country are also making 2017 a possibly tough year for Vietnam’s rice exports. According to businesses, all requirements, ranging from storage capacity, the capacity of milling facilities, venues for warehouses and mills and material zones, to new licenses and documents required for the registration of export contracts in the government’s Decree No. 109/2010/ND-CP on rice export business, are only formalistic and do not suit the current situation. 

At a recent workshop on directions for amending /the decree, the Vietnam Institute for Economic and Policy Research (VEPR) stressed that the revision of Decree No. 109 must have the aim of creating the best possible conditions in which for enterprises to participate in rice exports and of reflecting the diversity of the market. In reality, a number of businesses have their own markets and products of high quality and value, but do not satisfy the requirements set out in the decree. Therefore, if “untied,” those enterprises will lose export opportunities and the rice industry will hardly move up in the value ladder.

In 2016, Vietnam’s rice exports only hit more than 4.8 million tonnes with an export value of nearly US$2.2 billion, down 25.8% in volume and 21.2% in value compared to 2015. Also last year, the Vietnam Food Association (VFA) had to lower the rice export target twice due to difficulties. Given the negative signals in the first two months of the year, it is necessary for stakeholders to promptly remove obstacles and make relevant policy adjustments aiming to empower businesses and lead rice export output and value to meet expectations.

Vietnam learns from Japan’s experience in supporting SMEs

The Ministry of Planning and Investment on March 2 hosted a workshop to learn experience from Japan in supporting the development of small- and medium-sized enterprises (SMEs).

According to Deputy Minister of Planning and Investment Dang Huy Dong, Vietnamese SMEs are facing many difficulties and fierce competition in the context of international integration. 

He said that the workshop offered a good chance for Vietnam to study Japan’s experience, towards providing more effective assistance to its enterprises and promoting cooperation between the two countries. 

Hiroshi Arai from the Bureau of small- and medium-sized enterprises under Japan’s Ministry of Economy, Trade and Industry underlined the pillar role played by SMEs in Japan’s economy. 

Japan has paid special attention to building policies and mechanisms to support SMEs, and achieved remarkable results, he stressed.

When any Japanese decide to start business, they will receive consultations related to administrative procedures, legal regulations, production organisation and technology application, and financial plan building, he added. 

Japan’s authorized agencies have also worked to help SMEs carry out modernization, improve the quality of products and competitiveness, and increase export. 

Japanese SMEs have also been assisted in training and updated market information, he noted. 

Participants mentioned weaknesses of Vietnamese SMEs, especially in management and technology application. 

They suggested the Government and relevant ministries and sector intensifying assistance, especially for those operating in the support industry. 

Japanese experts said if SMEs develop sustainably, they will be key providers of jobs. 

The Ministry of Planning and Investment has planned to summit a draft law on supporting SMEs to the Government, towards laying a foundation for effectively assisting SMEs in the future.

RoK’s 100-million-USD project launched in Bac Ninh

The People’s Committee of northern Bac Ninh province on March 2 granted an investment licence to a project worth 100 million USD of the Hanwha Techwin Security Company from the Republic of Korea.

The project, which specialises in manufacturing electronic circuits, semiconductors, chips, computers and cameras, will be built on an area of six hectares in the Que Vo Industrial Park of Bac Ninh province.

Bui Hoang Mai, head of the Bac Ninh Management Board of Industrial Parks, said that in 2015-2020, the province has given priority in electric, electronic and mechanical manufacturing sectors. He expressed his hope that the new project will generate more jobs for local workers, contributing to the local socio-economic development.

Chairman of provincial People’s Committee Nguyen Tu Quynh affirmed that Bac Ninh will create optimal conditions for investors.

Yang Jinseol, a representative of the company, pledged to promptly build the factory and put it into operation as scheduled. 

In the first two months of this year, Bac Ninh attracted 2.7 billion USD in foreign direct investment (FDI). On February 24, it granted an investment licence for Samsung Display Vietnam Limited Company’s 2.5 billion USD expansion project.

As of February 2017, industrial parks in Bac Ninh province attracted 1,086 projects with registered capital of 15.87 billion USD, including 659 FDI projects worth 14.13 billion USD. Those projects created jobs for more than 230,000 workers and contributed seven trillion VND (306.7 million USD) to the State budget in 2016.

Thua Thien-Hue promotes cooperation with Japan’s localities

The central province of Thua Thien-Hue has been stepping up cooperation activities with Japan’s localities across various fields.

The central province signed cooperation relationships with Nara Prefecture, Kyoto city, Gifu Prefecture in tourism, education and training, investment and trade.

Japan is the biggest official development assistance (ODA) provider of Vietnam and Thua Thien Hue in particular. The province currently has six ODA projects financed by Japan.

In tourism, Phan Thanh Hai, Director of the Hue Monuments Conservation Centre, said tourism cooperation between Thua Thien Hue and Japan has developed well in recent years.

In heritage preservation and renovation, Japan assisted Thua Thien Hue in preserving and restoring the Hue citadel’s palace buildings and tombs with the UNESCO Research Institute and some Japanese univerisities.

Seven Japanese foreign direct investment projects with combined investment of 30.4 million USD are in operation in Thua Thien Hue, creating thousands of jobs. The projects are mainly operating in food processing, garment, information technology, engineering.

According to the conservation centre, from 2010 to 2015, the number of Japanese tourists to Thua Thien Hue increased steadily to reach 25,118 in 2016.

Quang Ninh leads in “One Commune One Product” programme

Deputy Prime Minister Trinh Dinh Dung hailed the northern province of Quang Ninh for leading in the implementation of “One Commune One Product” (OCOP) programme and gaining significant outcomes in the field.

He made the compliments at a conference held by the Ministry of Agriculture and Rural Development and the provincial People’s Committee in Ha Long city on March 2.

The Deputy PM asked the agricultural sector to target the global market, expand highly-competitive products, and generate jobs for rural workers.

He called on local households to create products while businesses and cooperatives will buy the products and promote their brand names.

The government official requested improving the institutional system and building a new legal corridor for rural development as well as devising policies to develop rural occupations and preserve craft villages.

He also ordered to mobilize financial resources to develop non-agricultural economy in rural areas and encourage scientists to join the creation of high-value products.

Secretary of the provincial Party Committee Nguyen Van Doc highlighted local advantages in agriculture and shared experience in implementing the programme.

He noted that Quang Ninh has attracted 180 businesses to join the programme and implement 103 projects to support the manufacture of OCOP products.

As many as 210 products registered to join the programme, 99 of which met 3-5 star standards and 39 others received food security certifications.

The sales of OCOP economic organisations and manufacturing households reached over 672 billion VND (29.4 million USD).

The OCOP programme was initiated by the ministry in 2008. Quang Ninh was the first locality nationwide to implement the project from 2013.

Hai Duong lures 128.6 mln USD in foreign investment

Hai Duong attracted 128.6 million USD in foreign investment in the first two months of 2017, representing an 8.4-fold increase from the same period last year.

The provincial Department of Planning and Investment has reported that the figure included 89.2 million USD coming from seven new projects and the remainder being added capital of four existing projects.

The Red River Delta province also aims for the top 20 in terms of the provincial competiveness index in 2016-2020.

It aims to double the number of its enterprises by 2020.

In 2016, Hai Duong registered an economic growth rate of 7.9 percent. The province collected over 11 trillion VND (500 million USD) for the state budget and fetched 4.5 billion USD from exports.

The locality is now home to around 11,000 businesses and 339 foreign investment projects from 24 countries and territories.

It has established 18 industrial parks on a total area of over 3,000 hectares and devised a plan to develop 45 industrial clusters on over 2,000 hectares.

Coffee export soars in two months

Vietnam was estimated to ship 273,000 tonnes of coffee abroad for 616 million USD in the first two months of 2017, down 7.3 percent in quantity but up 22.3 percent in value compared to the same period last year.

Top importers Germany and the US accounted for 16 percent and 14.7 percent of the total Vietnamese coffee exports during the period, with shipments to Belgium, the UK, the US and Algeria increasing significantly.

Coffee products were sold overseas at an average price of 2,257 USD per tonne in January, up 30.2 percent year-on-year.

Do Ha Nam, deputy head of the Vietnam Coffee & Cocoa Association, said domestic coffee yield this year is expected to drop by 20 percent due to drought. 

Growers tend to stock their goods in hope of higher prices, he added.

Nam also forecast a 30-percent reduction in coffee export due to material shortage.

In respond to the information that Brazil cancels import of Vietnamese coffee robusta, Nam said it causes little impact on Vietnam’s exports as the volume Brazil intends to import is not much.

Eurocham Whitebook released

The European Chamber of Commerce and the Vietnam Chamber of Commerce and Industry (VCCI) have jointly hosted the EU-Vietnam Economic Cooperation Conference “Eurocham Whitebook 2017 Launch and EU-Vietnam FTA Outlook”.

The 9th version of the Whitebook gives update information about Vietnam’s economic prospects, legal environment and business climate. 

VCCI Chairman Vu Tien Loc says the book designates one chapter to analyze impacts of the EU Vietnam Free Trade Agreement on local businesses.

“The EU-Vietnam FTA is a major prospect for Vietnamese goods to enter a market of 28 member states, leveraging domestic institutional reform through high standard regulations on cross border trade. Further institutional reform is required to realize commitments stated in the document,” he said.

Eurocham Chairman Michael Behrens expected that the EU-Vietnam FTA could become a benchmark free trade deal in Vietnam’s globalization in the context of uncertain future of the Trans Pacific Partnership agreement (TPP).

Dairy product companies push to lift milk price cap

Dairy product companies are pushing for Vietnamese lawmakers to eliminate price ceilings for 25 powdered milk products for children under the age of six.

The Nutritional Foods Group (NFG), a non-profit, non-governmental representative body of six of the world’s leading multi-national dairy companies operating in Vietnam, said that since the price ceilings were given effect in May 2014, costs have skyrocketed.

This has resulted in catastrophic losses to companies in the segment.  The price caps were also the reason that last year leading French based dairy Danone decided to exit the Vietnam market.

The price caps are also contradictory to the government’s policy of opening its markets in line with World Trade Organization commitments and guidelines argued the NFG, stating it would be better to let market forces determine the selling price.

Nguyen Anh Tuan, director of the Ministry of Finance Price Management Department, had late last year told reporters that the price ceilings would remain in effect through the end of 2016 and then the Ministry would be open to lifting them.

Seminar discussed SME support     

Japanese and Vietnamese experts discussed support policies for small and medium-sized enterprises (SMEs) at a seminar hosted by the Ministry of Planning and Investment on Thursday in the capital.

Despite their role in Viet Nam’s socio-economic development, SMEs still encounter many difficulties including capital shortage, insufficient financial capacities and technological weakness, experts said.

The firms are also coping with harsher competition from foreign rivals as the country integrates deeply into the global economy, they said.

Experts suggested that the Government and relevant ministries and sectors should intensify assistance for SMEs, especially for those operating in the support industry.

According to Japanese experts, if SMEs developed sustainably, they would support the development of large-scale enterprises thanks to their sufficient supply of components and parts.

They added they SMEs could also be a key provider of jobs.

In his speech at the event, Hiroshi Arai from the Small- and Medium-sized Enterprises Agency under Japan’s Ministry of Economy, Trade and Industry spoke highly of SMEs’ key role in Japan’s economy.

Japan has paid special attention to building policies and mechanisms to support SMEs, and achieved remarkable results, he said. When any Japanese citizens decide to start businesses, they will receive consultations related to administrative procedures, legal regulations, production organisation and technology application, and financial planning, he added.

Japanese SMEs have also been assisted in training and on updated market information, he noted.

Meanwhile, Deputy Minister of Planning and Investment Dang Huy Dong emphasised the importance of studying Japan’s experience, towards providing more effective assistance to its enterprises and promoting co-operation between the two countries.

Viet Nam and Japan have reached an agreement on a series of actions to tackle issues related to SME support. From now to the end of the year, the two sides will continue to co-operate on conducting surveys around activities such as financing to expand investment, technology transfer and personnel training.

Japan will also assist policymakers in drafting the law on SMEs and collaborate with Viet Nam to organise conferences on policies to support SMEs. 

Total outstanding loans up in HCM City     

Total mobilised capital of credit institutions in HCM City in the first two months of the year was estimated at VND1.78 quadrillion (US$78.03 billion), an increase of 0.31 per cent over the end of 2016 and up 13.18 per cent over the same period last year, according to the State Bank of Viet Nam’s HCM City branch.

The amount in Vietnamese dong was worth VND1.56 quadrillion, accounting for 87.5 per cent of the total mobilised capital. The rest was in foreign currency.

Total outstanding loans were estimated at nearly VND1.49 quadrillion, up 1 per cent and 19.7 per cent over the end of last year and the same period last year, respectively.

The bank said this was a good growth rate compared to previous years.

The central bank said that medium- and long-term lending accounted for 56.7 per cent of the total outstanding loans, an increase of 0.94 per cent over the end of last year.

Short-term loans accounted for 43.3 per cent, up 1.08 per cent from the end of 2016.

The bank also reported a total of VND147 trillion in short-term outstanding loans in Vietnamese dong to five priority sectors (agriculture and rural development, production of export goods, small- and medium-sized enterprises, supporting industries, and high-tech enterprises).

Loans given to SMEs accounted for nearly 65 per cent, reaching VND95.05 trillion of total loans to five priority sectors. 

UD Trucks unveils new Croner     

UD Trucks on Wednesday launched Croner, an all-new medium duty truck, to continue its legacy of building the “truck that the world needs today” Tokyo.

The truck was launched specifically for the company’s growth markets across Asia, Africa, the Middle East and South America.

Croner is a reliable and versatile truck range built with robust and quality components delivering extra productivity and superior uptime. It is engineered to help customers stay ahead of the competition through the simple concept of saving time.

The truck is designed to excel in the medium-duty segment to compete in growth markets.

It has options for three gross vehicle weight (GVW) models: MKE, LKE and PKE; and their wheelbase variants, which can offer up to 21 different basic configurations to suit specific demands of various industries.

Sustainable solutions sought for declining banana sales

Già Hương and Cấy Mô bananas in Đồng Nai Province have been ready to harvest since February, but traders, mostly in China, have stopped importing the fruit.

At a forum on sustainable consumption of bananas, Hoàng Thị Bích Hằng, chairwoman of the Farmer’s Union in the province, said that bananas are grown on 700 hectares, mostly in the districts of Trảng Bom, Thống Nhất, Định Xuân and Long Khánh.

Bơm and Sứ bananas are sold for VNĐ5,000-VNĐ7,000 per kilo, Hằng said.

“These kinds of bananas have not faced problems in sales because enterprises in the province buy them to dry for export,” she said.

However, Già Hương and Cấy Mô bananas have not been selling. Their prices have fallen to VNĐ1,000  to VNĐ1,200 (4 to 5 US cents) per kilo, she added.

In the same period last year, the prices were more than VNĐ10,000 per kilo because the demand from China was high. At the end of 2015, bananas in China could not grow because of cold weather.

At that time, many Vietnamese farmers saw higher prices for Già Hương and Cấy Mô bananas compared to Bơm and Sứ bananas so they did not want to plant the latter. Instead, they cut trees and planted Già Hương and Cấy Mô.

According to economists, the demand from China since February has been not high because banana cultivation there has recovered.

Prior to the low sales, the provincial agencies had worked with many organisations and associations in the province and HCM City to help farmers.

Big C on March 2  launched its “No Profit Đồng Nai Banana” campaign.

The leading supermarket chain will purchase 100 tonnes of bananas, absorb transportation, logistics and marketing costs, and sell the fruit at retail prices at VNĐ5,900 per kilo at 15 stores around the country with all proceeds going directly to the farmers themselves.

Nguyễn Bách Việt of Sejong Việt Nam Company, which exports bananas to South Korea, said that he also wanted to help farmers in Đồng Nai Province.

In the upcoming days, he will visit farmers to check the quality of bananas and then look for traders in Korea to buy bananas, Việt said.

The Startups and Administration Club has worked with the Việt Nam Social Welfare Centre for Adolescents and universities to organise a campaign called Charity Banana since February 22.

After eight days, around 300 tonnes of bananas were sold to help farmers, but the number accounted for 10 per cent of the total real figure in the province.

In the Trảng Bom District alone, more than 4,000 tonnes are waiting to sell.

Đỗ Long, chairman of the Startups and Administration Club, said: “It is urgent to carry out the campaign now. However, the activities of volunteers are not a sustainable way to produce higher consumption.”

Long said that he had received calls from farmers in the provinces of Tây Ninh and Bà Rịa-Vũng Tàu for help.

Co-operation between enterprises, farmers, scientists and the government should be strengthened, he said.

Long said that he could call on associations with a large number of enterprises in this field to buy bananas from farmers.

Relevant agencies in districts with large areas of bananas will co-operate with authorities at industrial parks and export processing zones to buy bananas to be used as dessert served with lunches for their workers, he said.

Dr Phạm Thanh Duy of the HCM City University of Social Sciences and Humanities said that this was a chance for students to work as volunteers in the campaign as traders for bananas.

They could sell bananas which are verified to meet quality standards by the provincial Technical Centre of Quality Measurement Standards III to convenience shops, Duy said.

Phạm Thái Sơn, head of the centre for enterprises relations at the HCM City University of Food Industry, said the charity campaign could affect prices in markets, meaning that other traders not included in the campaign might find it difficult to sell bananas because prices could be higher than those offered in the campaign.

The school will work with other universities in the food industry and technology to research ways to process bananas into other products, Sơn said.

A student at the University of Food Industry is conducting research to use bananas in the processing of flour.      

Local car maker, Hyundai begins mini bus manufacture project

The Korean Hyundai Motors and local Trường Hải Automobile Company (Thaco) have launched a mini bus manufacturing project with the total capacity of 10,000 units per year.

It’s the first-ever manufacturing project in Việt Nam to build a new Hyundai mini bus model for export.

The first Hyundai minis buses will roll out from Quảng Nam-based bus plant this year.

The bus model is the newest Hyundai model in the Vietnamese market, in co-operation with local car makers after series models of trucks, dump-trucks, buses and commercial cars were produced from 2011.

Thaco said it had invested over VNĐ2 trillion (US$88.5 million) to build a bus plant with total capacity of 20,000 seater/sleeping buses and mini-buses per year.

The nation’s biggest automaker plans to build three more plants with the total annual capacity of 215,000 trucks, vans, commercial cars, and achieve a localisation ratio of 16 per to 46 per cent.

Thaco has so far manufactured and distributed vehicles of three foreign brands: Kia of South Korea, Mazda of Japan and France’s Peugeot.

Electricity of Vietnam rounds off restructuring plan

The Electricity of Vietnam Group (EVN) has fulfilled all key objectives of its shake-up master plan for 2012-2015 approved by the Prime Minister on November 23, 2012.

In the four-year period, the group completed a decree on regulations on financial management mechanism and carried out the restructuring as well as production and business plans in five Electric Corporations and Power Transmission Corporations.

Throughout the restructuring process, EVN’s three power generation corporations have been operating smoothly.

Amid gloomy stock market, the group was still active in developing its divestment plan, organised public auctions as well as sought partners to transfer their capital in enterprises that needed to be divested. It completed divestment in six out of seven non-core enterprises.

Thanks to its rational organisation, EVN’s total member companies reduced to 38 from 88 units.

Throughout four years, the group played a vital role in stabilising the country’s macro-economy, providing public services and consolidating security and defence. 

It also took the lead in an investment programme to light up rural areas and island districts, making contributions to eliminating poverty and giving a push to the building of new style rural areas. By the end of 2015, 98.88 percent of rural population had access to electricity.

To date, the group has taken responsibility for power production and import as well as management of transmission operation.

According to EVN Chairman Duong Quang Thanh, the group has ensured sufficient power for socio-economic development and gained robust business results.

He said that the group will make a beeline for accomplishing main tasks for the 2016-2020 restructuring plan, which include the equitisation of power generation corporations and retail enterprises. In addition, it will improve competitive capacity to meet demands of socio-economic development.

Canada boosts farm produce export to Vietnam

Canada expects to sell more quality and safe farm produce to Vietnam where the middle class is growing fast, it was stated by Canadian Minister of Agriculture and Agri-Food Lawrence Macaulay during his January visit to Vietnam.

Vietnam is currently Canada’s top trade partner among the 10 ASEAN member states, with farm produce, food and fisheries accounting for nearly half of Canada’s exports to the country, according to the Thoi bao Kinh te Viet Nam (Vietnam Economic Times) on March 2. 

Canada’s key agricultural exports to Vietnam include snout otter clam, fresh lobster, oyster, cod, other kinds of cold-water fish, soya bean, wheat, oilseed, pork, beef, apple and cherry fruit, which amounted to over 196 million USD in 2016.  

Macaulay’s January visit was part of the Canadian government’s efforts to extend trade in Asia-Pacific, thereby creating jobs and improving Canadian farmers’ income over a long term. 

During a working session with Minister of Agriculture and Rural Development Nguyen Xuan Cuong, Macaulay expressed his wish to bring more lobsters to Vietnam and deliver the first shipment of blueberries soon. 

As the world’s largest pork manufacturer, Canada also wants to cooperate with Vietnam in developing pig genes, he said. 

He hailed Vietnamese coffee and seafood but suggested further improving production by adopting technological advances and adjusting products to suit consumers’ taste in each market. 

According to him, Canada boasts a wealth of experience in technological renovation to manufacture high-quality, safe and low-cost products, as well as a strict law and inspection system to ensure product quality. 

The guest informed that Canada will soon provide Vietnam with 15 million CAD for the “Safe food for growth” project and is working with the Vietnamese Ministry of Agriculture and Rural Development on this area. 

Cuong, for his part, said Vietnam facilitates the import of high-quality pig breeds, and currently there are 35 importers of Canadian lobsters nationwide. 

He added that trade potential between the two countries remains great because their goods are supplementary.

Vietnam attends Asia’s largest coffee and tea fair

As many as eight Vietnamese firms are showcasing their top quality tea and coffee products at the Café Asia and International Coffee and Tea Expo – the largest of its kind in Asia, which opened in Singapore on March 2.

The three-day event brings together 150 café owners and managers, coffee and tea exporters and importers as well as distributors and suppliers of café-related machinery and equipment in a dynamic marketplace. They are displaying their products in an area of 5,000 square metres.

According to Nguyen Viet Chi, Trade Counsellor of Vietnamese Embassy in Singapore, the fair creates opportunities for domestic enterprises to introduce their products as well as meet with potential partners in the region.

Chi highlighted that such international fairs helps Vietnamese businesses flesh out their product development by focusing on the protection of trademark as well as improvement product quality and brands.

Vietnamese exporters need to pay heeds to diversifying instant coffee products to match with consumers’ taste and bring higher export value, President of the ASEAN Coffee Federation (ACF) Victor Mah said, adding that with a total population of more than 600 million people, ASEAN is a large coffee consumption market in the region.

Trung Nguyen, Hello 5 and Liberica Gold are among the Vietnamese exhibitors who have branched out their products in Singapore for several years. Others businesses sent brochures, catalogues and samples to introduce their brands at the event.

On the opening day, a line-up of international visitors and businesses expressed their interests in Vietnamese coffee.

The event is expected to welcome over 10,000 visitors.

Vietnam’s love of gambling sends lottery sales skyrocketing

Vietnam is loosening its traditionally straight-laced attitude toward gambling having realized that the industry could stuff the nation’s coffers.

Vietnamese people spent about US$13 billion on lottery tickets from 2011 through 2015, helping the industry’s revenue to grow on average by 12% annually, according to a government agency.

The combined revenue from lottery companies in 21 southern provinces hit US$3 billion last year, a three-times surge from 2007, Bloomberg cited Vietnam’s Ministry of Finance as saying.

The new computerized lottery company Vietlott that began operating last summer has become the main rival to local state-run lotteries.

Vietlott, a joint venture with Malaysian conglomerate Berjaya, reported revenue of more than US$70 million last year. Its American-style game, called Mega 6/45, is the company’s first foray into the market and can be found in major cities of the country.

Each ticket costs VND10,000 (44 US cents) and players pick six different numbers from 1 to 45. To win the jackpot you have to match all six winning numbers from the prize draw. The jackpot grows by a minimum of VND12 billion per draw, and the prize will keep growing until there is a winner.

The country’s gaming industry is expected to grow further with the government set to relax its longstanding ban on casino gambling and allow locals to roll the dice at home, rather than traveling overseas for the buzz.

Additional foreign investment of US$3 billion into Vietnam’s casino businesses could increase gross domestic product by 0.58% in the first year, local media cited the Institute for Regional Sustainable Development in Hanoi as saying.

By some estimates, the policy change could add up to US$800 million in tax revenue to the state budget each year.

State-run lotteries were for years the only form of gambling allowed in Vietnam.

Since Vietnamese gamblers have no access to local casinos, they often cross the border into neighboring Cambodia where there are many gaming centers, mostly exclusive to Vietnamese players.

The three-year trial to remove the ban on locals in casinos is expected to make Vietnam a bright spot on the global gaming market as nearly 60% of its population is under 35, according to market research firm Nielson. The firm also expects the country’s middle class to more than double in size between 2014 and 2020, from 12 million to 33 million.

“It is true that Vietnamese people like the thrill and risk [of gambling],” Chinh Le, a VnExpress reader, said in a comment.

Quang Binh calls for investments in 70 projects

The central Quang Binh Province has called for investments in 70 projects in the period from 2016 to 2020. Of these, more than half are real estate projects.

The municipal People’s Committee has promulgated the Decision No 4263/QĐ-UBND on the list of projects calling for investment.

Accordingly, the projects will be in the sectors of transport (four projects), industrial park and urban area infrastructure (10 projects), tourism, trade and services (29 projects), healthcare and education (two projects), agro-forestry and industry and environment (18 projects).

The committee has also assigned the Department of Planning and Investment to co-operate with relevant sectors to provide information on the projects.

It said the high number of tourism and property projects in the list was because the province possessed several potential and natural resources that could be developed for tourism.

In recent years, the province’s tourism sector has seen opportunities that could make it one of the outstanding destinations in the country and in the world. The province is promoting its foreign affairs activities and is striving to create high quality services for the period from 2016 to 2020.

Scrap ceiling price on milk products, says NFG     

The European Chamber of Commerce in Viet Nam’s Nutritional Foods Group (NFG) recommended that the Government remove the price ceiling on milk products for children under six years.

The NFG suggested that the State allows the return to market-based pricing. This proposal is a part of the 2017 White Book released in Ha Noi on Wednesday.

Under decisions 1079/QD-BTC and 857/QD-BTC issued by the finance ministry in 2014 and 2015, respectively, a price ceiling was imposed on milk products for children under six years of age from June 1, 2014, to December 31, 2016.

The NFG has proposed that the Government refrain from controlling the prices of these products by extending the existing price ceiling or through additional controls. The State’s intervention in the business activities of enterprises through administrative measures such as price ceiling run counter to its aspiration to achieve a full market economy, it said.

“We are concerned that such measures not only impact the business performance of enterprises in the short- to medium-term, but also affect long-term trade and investment prospects in general. The Government’s interference in the business decisions of enterprises sends a negative signal to investors that Viet Nam’s investment climate is not genuinely stable, open or integrated,” the NFG said.

As per data released by market research company AC Nielsen in July 2015, the market for formula milk for children under six shrunk by 11 per cent in the 12 months after Decision 1079 was implemented. “This might have been caused by the negative psychological impact the price ceiling had on consumer behaviour. Furthermore, up to 60 per cent of the public report that they have experienced moderate to no benefit from the state’s price intervention measures,” the AC Nielsen report said.

According to the NFG, since the price ceiling regulation was put in place in 2014, many costs have increased, such as Viet Nam’s đồng exchange rate and the cost of electricity and labour, all of which impact milk manufacturers and distributors. In this context, one of the biggest international milk companies decided to exit the Vietnamese market in 2016.

The group said the Government should clarify the objectives and the intended beneficiaries of its price control measures. When necessary, it should impose price stabilisation measures for a restricted period of time and only on essential products that are needed to ‘meet the basic needs of the people’, as stipulated in the Law on Pricing.

“With regard to the milk formula market, the Government should not control the prices of products in the mid-tier and premium segments. It should impose price stabilisation measures only on the economy segment to improve low-income consumers’ access to these products,” the NFG said.

The State must consider lowering price-composing factors such as import tariffs (5 per cent for imports from ASEAN and 10 per cent for other countries, which is higher than in other countries in the region) and value added tax rates to reduce the price of milk formula products for children under six years of age, it advised.

There are an estimated 888 milk products across the premium, mid-tier and economy segments, offering an incredibly diverse selection of products to meet the diverse needs of Vietnamese consumers. 

Hai Dương attracts $128.6 million in foreign investment

The northern province of Hai Duong has attracted US$128.6 million in foreign investment in the first two months of 2017, up 8.4 times compared to the same period last year.

The provincial department of planning and investment said it has so far granted a licence to seven foreign investment projects with a registered capital of $89.2 million, and adjusted four ongoing ones in the industrial zone, adding another $39.4 million by February.

Hai Duong aims to be among the top 20 competitive provinces in the country by 2020, as per the plan was drawn up to improve the provincial competitiveness index (PCI) in the 2016-2020 period. To achieve this, the province is working to reduce the registration period and the time taken for legislative procedures.

It is also targeting a minimum 1.5-time increase in the number of enterprises in the province and is organising frequent dialogues between authorities and enterprises. All documents and regulations on mechanisms and policies promulgated by the province will have sought and taken into consideration the opinions of the business community.

The province is also promoting investments by large and multinational corporations, and is directing the implementation of administrative reforms, especially with regard to the duties of public officers in facilitating processes related to investment, land, construction, export and import, labour and environment. 

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR

Nhơn Trạch 2 plans 16 per cent dividend rate lift

PetroVietnam Power Nhơn Trạch 2 has proposed that the firm’s management board raise the dividend payment rate on last year’s business performance from 20 per cent to 36 per cent.

The former dividend rate of 20 per cent was approved at the company’s shareholder meeting in March 2016.

The additional dividend will include a 13 per cent payment in cash and 3 per cent payment in shares – equal to more than 8.6 million shares.

The company already completed dividend payments to shareholders in 2016.

The 20 per cent dividend was paid three times, with the first payment in August 2016 and the last one in January 2017.

In 2016, the company earned a total revenue of nearly VNĐ8 trillion, an increase of 19 per cent from 2015’s number, and a post-tax profit of VNĐ1.08 trillion, exceeding last year’s target by 49 per cent.

This year, Nhơn Trạch 2 targets a post-tax profit of VNĐ672 billion – 38 per-cent lower than last year’s result – and a 25 per cent dividend.

European firms optimistic about Vietnam’s business environment

European companies expressed optimism about the business environment in Vietnam during a recent meeting with the press, Cong Thuong (Industry & Trade) newspaper reported.

The European Chamber of Commerce in Vietnam (EuroCham) revealed the positivity from a survey on Vietnam’s business environment in the fourth quarter of 2016.

Nearly 73 percent of European businesses were optimistic about their operations in Vietnam, and only 5.5 percent were pessimistic.

Up to 90 percent of companies said they will maintain or increase investment in the Southeast Asian country, while 56 percent said they plan to keep or increase the number of employees, and a mere 6.7 percent plan to reduce staff.

The European chamber has held various activities to encourage enterprises to invest in Vietnamese localities such as Buon Me Thuot in the Central Highlands province of Dak Lak and the northern port city of Hai Phong along with other Central Highlands provinces.

It established a branch in the central region to help businesses step up investment in Quang Nam, Da Nang and Thua Thien – Hue, and hopes to set up more branches in Hai Phong and other localities.

This year, the chamber will accelerate the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) and clear up concerns raised by European firms, as well as host more dialogues between Vietnamese government representatives, ministries and agencies with European companies.

EuroCham expects the Vietnamese government to further improve the business environment and increase the competitiveness of the economy. 

The chamber will devises measures to help businesses implement the EVFTA.

EuroCham’s Whitebook 2017 highlighting issues relevant to trade and investment in Vietnam is scheduled to be launched on March 2 this year.

Japanese bank buys into BIDV subsidiary

BLC, the finance leasing arm of the Bank for Investment and Development of Vietnam (BIDV), has been renamed as BIDV-SuMi TRUST Leasing Co. after Japan’s Sumitomo Mitsui Trust Bank bought a 49% stake.

The State Bank of Vietnam (SBV) has given approval in principle to the conversion of BLC into a joint venture. BIDV Financial Leasing Co. (BLC) was wholly owned by BIDV with chartered capital of VND447.8 billion, and headquartered in HCM City.

The capital of the joint venture is doubled to VND895.6 billion and the headquarters is in Hanoi. BIDV holds a 50% stake, Sumitomo Mitsui 49% and Sun Group 1%.

BIDV said it had been in a strategic partnership with Sumitomo Mitsui since 2013. 

The two sides reached an agreement on cooperation in finance leasing in Hanoi on April 29, 2016, in which BIDV would sell 49% of its finance leasing arm to the Japanese partner.

BIDV-SuMi TRUST would be the first finance leasing joint venture between a local bank and a foreign financial institution in the country. The company will be put into operation when the central bank gives official approval.

When BIDV-SuMi TRUST is in place, BIDV would be able to roll out financial packages that meet diverse needs of customers for credit, insurance, finance leasing and securities.

Sumitomo Mitsui is Japan’s largest trust bank with total assets of nearly 59.5 trillion yen (US$585.4 billion) and equity of some 2.02 trillion yen (US$19.9 billion) by September 30, 2016.

Japan, Vietnam promote links in mechanical engineering industry

A first-ever fair highlighting manufacturing technologies opened in Hanoi on February 23, providing a good opportunity for broader cooperation between Vietnamese and Japanese enterprises involved in the mechanical engineering industry.

The fair attracted 138 enterprises, including Japan’s leading groups such Toyota, Canon, Honda, Yamaha, Tamron, and NEC.

As many as 28 enterprises from Hanoi joined the event.

Vice Chairman of the municipal People’s Committee Nguyen Doan Toan said Hanoi is home to 470 enterprises operating in the support industry, including over 250 mechanical firms, 132 electronic companies and 85 textile businesses.

Toan also noted that the capital city always pays heed to developing cooperation with Japan in all fields, especially in the mechanical engineering industry.

The two-day fair aims to help Vietnamese enterprises access high technologies, thus deeply joining global production networks, he said, adding that it lays a foundation for businesses to promote trade links in the time to come.

Complaints over expensive rice export licences

A discussion about ways to loosen Decree 109 on rice export has been held by the UK-based organisation Oxfam and Vietnam Chamber of Commerce and Industry (VCCI) on February 22.

Ngo Van Nam, representative of ADC Company in HCM City said Decree 109 was no longer suitable for the current economy. The ADC Company has a 35,000 hectare of material area and 16,000 farmers but has no intention to ask for the licence because of the high cost. Instead, they partnered with another company that already has the licence. Each time they want to export, they have to hire extra help to deal with the administrative procedures. He said the fee for the licence is USD20,000.

The regulations stipulate that once a company has a rice export certificate, it must export at least 10,000 tonnes of rice a year. ADC Company hopes that rice export contracts will be auctioned. Currently, big companies have most of the contracts and give the good ones to their familiar smaller companies. Other companies have to take risky contracts just to meet the quota.

Dang Thi Lien, director of Long An Food Company said the specific measurements of a required material area should be scraped so that firms can be more flexible to improve rice quality and meet social and environmental responsibilities.

Several experts said they could understand that the government might tighten the regulations on rice exports for food security, but Vietnam doesn’t have to worry about food shortages. If the government doesn’t change the regulations, farmers may continue to pursue quantity despite the cheap prices instead of quality.

However, the process should be considered carefully to avoid chaos. Tran Tien Khai from the University of Economics Ho Chi Minh City, agreed and said that government should also take lessons from the dwindling exports of shrimp, catfish and dragon fruits. 

Meanwhile, Director of VCCI in Can Tho City Vo Hung Dung said there was no reason to blame small companies. He thinks only dumping by big companies could affect the market that’s why there was a need to create a fair arena for all businesses.

The Ministry of Industry and Trade recently signed a decision to abolish a limit the number of rice export companies at 150.

Vietnamese SMBs take advantage of online business trend to enhance competitiveness

E-commerce with multi-channel selling has become a popular method in the world which helps small and medium sized businesses (SMBs) optimise their operations.

“Online retail in Vietnam will continue to accelerate in the upcoming period as domestic and foreign retailers now move towards multichannel with considerable investment in online retail,” said Nguyen Ngoc Dung, vice president of the Vietnam E-commerce Association (VECOM) at the Vietnam Online Business Forum 2017 (VOBF) in Hanoi today.

This nationwide event is firstly introduced in Vietnam and expected to be held for e-commerce community in Vietnam annually.

Vietnam, with over 54 per cent of internet penetration and a large number of smart device users, is considered a potential market for e-commerce development.

According to VECOM, Vietnam B2C e-commerce retail sale in 2016 reached $5 billion, accounting for 3 per cent of the country’s total retail products and consumer. In the next five years, it is predicted to grow in two digit figure.

Dung said that this is a significant potential for Vietnam’s retail sector, especially, in order to boost e-commerce growth, Prime Minister Nguyen Xuan Phuc has approved the master plan for e-commerce development in the period of 2016-2020. Accordingly, by 2020, e-commerce retail sale is targeted to reach $10 billion, accounting for 50 per cent of the country’s total retail sale.

“However, difficulties are still present on our way to boost e-commerce and enhance the development of Vietnam’s retail industry. In the meantime, businesses need to unify their information in both real and cyber worlds in order to gain consumers’ trust which will then encourages consumer buying behaviour,” he said.

According to Nielsen’s Global Trust in Advertising 2015, Vietnamese consumers place most confidence in advertisements on search metrics, and then social networks, online video and banners.

In order to raise businesses’ awareness of the importance of building an online presence and conducting online marketing, prestigious experts representing for world’s big names such as Google, Nielsen, Facebook, Vietnam Post, Alibaba, Mat Bao and Verisign. have been invited to the forum to share their expertise and guidelines in this field. 

At the forum, many experts have agreed that it is essential for every small business to have their own website. Given the ease of building a website these days, it’s possible for a business to build a high-quality website to showcase business, and to establish their brand in a form they can control. 77 per cent of small businesses agree that websites are the most effective online marketing tool for creating awareness and strengthening customer relationships, more than any other online marketing tool.

“The most effective way to do business online is to have a website and social media presence that work together to spread your message and foster relationships with the broadest customer audience. The first step towards building a successful and credible online presence is to choose the right domain name,” said Dung.

“By using trusted domain extensions, there is a level of credibility awarded to these businesses. Considered the global standard for doing business online, numerous global enterprises, including Fortune 500 companies, have chosen .com to build their websites with the desire of extending beyond the local audience,” said Le Hai Binh, president of Mat Bao. “Additionally, with the operational accuracy and stability of the .com DNS infrastructure for more than 18 years and over 127.5 million domain names registered globally, businesses are encouraged to choose .com to be the basis of their online presence.”

Rural areas new source of FMCG growth

Vietnam’s rural areas have been rising as a new source of growth for many fast-moving consumer goods (FMCG) manufacturers, with growth of 7 per cent in the last quarter of 2016, 0.3 per cent higher than in urban areas. 

The latest report from market researchers Nielsen on Vietnam’s FMCG growth in 2016 showed that rural areas bounced back strongly in the final quarter of 2016, coming in at 7 per cent and contributing 51 per cent to total FMCG sales nationwide.

FMCG growth in urban areas was 6.7 per cent, with growth in both urban and rural areas primarily driven by volume increase.

“The build-up and positive sentiment towards the Tet holiday was one of the key drivers of FMCG growth,” said Mr. Nguyen Anh Dung, Director of Retail Measurement Services at Nielsen. “This momentum was enhanced by a willingness among consumers to spend, together with an improvement in sentiment among retailers.”

Growth in the year as a whole slowed down due to unfavorable weather conditions in the northern, central, and southern regions. Rural areas are expected to bounce back, as seen in the fourth quarter.

“Rural areas are still the largest consumer base and these consumers have increasing incomes that provide higher spending power,” Mr. Dung said. “They also have better access to the internet and smartphones in seeking information on products and quality.” 

Given its importance, manufacturers should capture the opportunities in rural areas by equipping themselves with up-to-date knowledge on emerging consumer demand and market trends, he emphasized.

FMCG growth in the six key cities in Vietnam (Hanoi, Ho Chi Minh City, Hai Phong, Can Tho, Nha Trang, and Da Nang) saw a strong improvement in the last quarter of 2016, with 7.3 per cent growth versus a year ago; the highest for the last three years and mainly driven by an impressive increase of 6 per cent in volume growth.

The recovery was reflected in positive growth in six out of seven super categories, with Baby Care being the exception. FMCG growth saw major momentum in the Food category, with 11.6 per cent growth, and the Personal Care category, with 9.6 per cent growth.

Both Home Care and Cigarettes saw 8.1 per cent growth, while the Milk-Based category recorded 3.2 per cent growth. Beverages, including beer, continued to dominate FMCG sales in the quarter, accounting for 40 per cent of turnover and growing 7.3 per cent. 

JETRO holds expo in Hanoi

More than 66 per cent of Japanese enterprises want to expand their manufacturing in Vietnam, Mr. Kawada Atsusuke, Chief Representative of the Japan External Trade Organization (JETRO) in Hanoi, told the Factory Network Business Expo 2017 and Japan Parts and Processing Exhibition 2017, being held on February 23 and 24.

Nearly 65 per cent said that they have difficulties relating to localization, materials, spare parts and components.

JETRO therefore organized the event to connect Vietnamese and Japanese enterprises. Mr. Kawada believes that “this event will help enterprises find sales and new sales channels to boost both Vietnam’s and Japan’s economy.”

There are 138 enterprises taking part in the exhibition and 400 customers registered to trade. Enterprises taking part include manufacturers, processors, and enterprises providing parts.

There are also businesses providing services that support industry. Products are diverse and include product components, accessories, motor cars, motorcycles, electronic components and equipment, precision machinery and instruments, plastic products, and rubber. Major Japanese corporations in attendance include Toyota, Canon, Honda, Yamaha, Tamron, NEC, and Sony EMCS.

Deputy President of the Hanoi People’s Committee Nguyen Doan Toan said that the city is keen to develop cooperation with Japan in all sectors.

Export turnover between Hanoi and Japan continues to grow. In 2016 it reached $1.23 billion, accounting for 11.6 per cent of the city’s total export turnover. Exports to Japan are primarily base metals, electronic components, and computers.

Japan is the leading in FDI to Hanoi, with 800 projects and total investment capital of $5.2 billion.

F.I.T registers to buy 3 million Pharimexco shares

F.I.T Group has announced it has registered to buy 3 million shares of the Mekong Pharmaceutical Joint Stock Company (Pharimexco, stock code DCL), with a purchase expected to take place between February 24 and March 23.

Post-purchase, F.I.T will see its holding in Pharimexco increase from 64.62 per cent to 69.95 per cent.

Pharimexco has set a revenue target this year of VND914 billion ($40.03 million), an increase of nearly 24 per cent against 2016. After-tax-profit is expected to be VND96 billion ($4.2 million), up 7 per cent.

After-tax-profit in 2016 rose by half compared to 2015 and was more than 10 per cent higher than the target. After-tax-profit in 2015 was 91 per cent higher than in 2014. Profits boomed after its listing. The company also acquired the Euvipharm Pharmaceutical Joint Stock Company, a member of Canada’s Valean Pharmaceuticals International, Inc.

The company plans to focus on promoting its strategic resources for long-term development projects in 2017, including factory medical supplies and investment projects to expand capsule production, and will restructure Euvipharm.

Factory Network Business Expo underway in Hanoi

The first Factory Network Business Expo kicked off in Hanoi on February 23, bringing together 138 businesses from Vietnam, Japan, Thailand, China and Singapore.

The two-day event, which attracted many major Japanese groups such as Toyota, Canon, Honda, Yamaha and Tamron, was co-organised by the Hanoi Department of Industry and Trade along with Japan’s NC network Co., Ltd.

Taking place at the same time as the 2017 Japan Parts and Processing Exhibition, hosted by the Japan External Trade Organisation (JETRO), it aims to provide an opportunity for Vietnamese and Japanese businesses to foster exchange and cooperation in the mechanical engineering industry as well as boost the application of advanced technology in the manufacturing sector.

According to Nguyen Doan Toan, Vice Chairman of Hanoi city People’s Committee, Hanoi is now home to around 470 businesses operating in the supporting industry, with 250 of them working in mechanical engineering, 132 others in electronics, and 85 businesses in garment and textile.

He stressed that Hanoi always treasures cooperation with Japan in all fields, particularly the economics mechanical engineering industry in particular.

Holding that Japan has strong advantages as one of world’s leading economies with advanced science and technology, Hanoi co-hosted the trade fair with the hope of helping Vietnamese businesses to gain access to advanced technologies and further their participation in the global production networks, he said.

Government unveils action plan to improve economic competitiveness

The government has announced an action plan to implement the Party Central Committee’s resolution on enhancing the quality of growth, labour productivity and economic competitiveness.

Under the plan, the government aims to maintain economic stability, keep annual inflation under 5% and gradually reduce the spending deficit to below 3.5% by 2020.

Public debt during the 2016-2020 period is not allowed to reach 65%, which is to be brought down to 60% in 2030, while the ratio of bad debt is targeted at below 3% by 2020.

The government also aims to increase the size of the stock market to 70% of GDP in 2020, divest all State stakes in enterprises where it is unnecessary for the government to hold more than half of capital.

In order to achieve these targets, the government will endeavour to streamline economic management, push through the equitisation of State-owned enterprises and reform the financial market and public services.

The government will also take action to build a clean and high-tech agricultural sector and restructure key industries in a more substantive manner.

Under the action plan, the role of the private sector will be promoted with a wide range of supportive policies.

The Ministry of Planning and Investment has been tasked with formulating the Law on Support for Small and Medium Enterprises, while other ministries and local authorities have been asked to step up administrative reforms to facilitate business activities. 

Young people face difficulties in buying houses because of increased prices

As per the Ho Chi Minh City Real Estate Association (HoRea)’s survey, over 50,000 newly-wed couples a year in the city desire to have their own house leading to the great demand of housing.

However, young couples have faced difficulties in buying a house of their own choice because of increased price of house and their limited financial condition.

In its survey, HSBC showed that young people who were born from 1981 to 1998 delayed their plan to buy their own house because of slow salary increment and continued rapid house price growth. Also the survey revealed that Asian young generation asked their parents for financially aid when they want to buy houses.

A survey comprising of 10,000 participants in 10 nations showed that four out of 10 young people have a house of their own accounting for 38 percent. Up to 81 percent of young people who have had a house and planned to buy a house within five next years.  

69 percent of young residents said that they have not saved enough money for the first payment of a house and 39 percent of them said that they are unable to buy a desired house because price of house surged.

Meanwhile in Vietnam, HSBC reported that increased demand of house resulted from the “golden age” population with fast urbanization speed. Currently, one-third population or 32.8 percent is in the age of 25-45; half of them are young people.

Urbanization speed in Vietnam is 35 percent in 2016 and it will be 40 percent by 2020 which lead to economic hubs such as Ho Chi Minh City, the central city of Da Nang, Hanoi and the northern city of Hai Phong will be homes of 36 million within four next years.

U.S.-owned realty service company CBRE Vietnam forecast that house price in HCMC will soar in 2017 and increase by 10 percent in three next years. The realty service company also predicted that 43,861 condos will be sold in 2017.

HCMC to organize low cost housing design competition

The HCMC Department of Construction will organize a low cost housing design competition to build social housing projects for low income people in the city, announced director of the department Tran Trong Tuan yesterday afternoon.

According to Mr. Tuan, HCMC will be able to build social housing projects with the price of VND100 million (US$4,383) an apartment if project investment does not cover site clearance and technical infrastructure, enjoys land use fee exemption and an apartment area is less than 25 square meters and building cost is less than VND4 million per square meter.

However, Mr. Tuan said that HCMC does not encourage building of this type of house because it just should be developed for workers at industrial parks and export processing zones. The social housing program does not target the VND100 million housing but ways to build low cost housing for low income people in each district.

Therefore, the social housing program must be developed on the basic of approved plan to ensure the living space quality for citizens.

The reasonable housing price for low income people in HCMC is less than VND1 billion swinging from VND300-900 an apartment with diversified types and products to meet demand of households of different income and living conditions.

Next week, the department will work with the HCMC Real Estate Association to organize a forum, aiming to seek solutions to build low cost housing in HCMC.

VBSP to get extra VND20.8 trillion

The Government will allocate an additional VND20.8 trillion for the Vietnam Bank for Social Policies (VBSP) in 2016-2020, reports the Vietnam News Agency.

The amount will help its bank offset the capital shortfalls in previous years, increase its chartered capital, and fund its operating costs and interest rate differentials.

By December 31, 2016, the bank’s chartered capital reached nearly VND10.7 trillion.

VBSP said the extra capital is good news for the poor and policy beneficiaries. Poor and near-poor households, people who just escaped from poverty, and regions having high poverty rates or suffering from natural disasters will be prioritized to borrow from the bank.

As a non-profit bank for the poor and policy beneficiaries, VBSP has for 15 years contributed to reducing poverty in Vietnam.

In 2016, VBSP reported total outstanding loans of VND157 trillion for more than 6.7 million poor and near-poor households and policy beneficiaries.

Govt targets budget deficit below 3.5% of GDP

The Government will continue consolidating macro-economic fundamentals in the 2016-2020 period to curb inflation at under 5% a year and cut budget deficit to less than 3.5% of gross domestic product (GDP) in 2020.

According to an action program for implementing two economic restructuring resolutions of the Party and the National Assembly, public debt will be limited at no higher than 65% of GDP in the next five years. By 2030, public debt will fall to below 60% of GDP, government debt under 50% of GDP and foreign debt at less than 45% of GDP.

Besides, the Government plans to make the average lending rate in the country competitive with that of the ASEAN-4 group, and improve the stock, government bond, corporate bond and insurance markets. In 2020, stock market cap would account for 70% of GDP, bond market 30% of GDP and insurance revenues a minimum of 4% of GDP.

The Government also pledges to divest capital from all enterprises where the State has no need to own more than 50%. In 2020, the nation will have at least one million active businesses, and 15,000 cooperatives and agricultural cooperative unions with healthy operations.

Japanese manufacturers come knocking in Hanoi

Representatives of 20 Japanese firms active in Vietnam are attending the Japan Parts & Processing Exhibition 2017 in Hanoi from February 23 to sound out business opportunities.

Toyota, Canon, Honda and Panasonic are among the firms participating in the event, which is being organized by the Japan External Trade Organization (JETRO) Hanoi Office, to look for parts suppliers.

The exhibition offers small and medium enterprises of Japan an opportunity to find buyers overseas and purchase parts in Vietnam. Vietnamese firms wishing to sell their products to Japanese companies can show up at the event.

A same event also takes place at the Factory Network Business Expo 2017 at the National Exhibition Construction Center on February 23 and 24.

These two events attract over 100 small and medium Japanese firms from Japan, China, Thailand and Vietnam, as well as around 10 Vietnamese enterprises.

The governments of Vietnam and Japan have created plenty of business opportunities and promote cooperation between manufacturers from both nations, according to the Ministry of Trade and Industry.

A recent survey conducted by JETRO shows 66.6% of Japanese businesses in Vietnam have plans to expand their investment activity in the next one or two years. However, around 64.8% have difficulty finding local materials, parts and components.

Therefore, JETRO organizes exhibitions on supporting industries, and updates the list of Vietnamese and Japanese suppliers to promote links between suppliers and buyers.

Ways sought to thwart tax evasion, transfer pricing

Authorities met in HCMC on February 22 to find ways to prevent tax evasion and transfer pricing. 

The HCMC Tax Department said in a report at the meeting that on target would be transfer pricing, food and related services, firms with questionable bank transactions, imported autos declared as gifts, e-commerce, tourism, fuel trading, people with huge incomes, and household businesses. 

As for transfer pricing, authorities will look into transactions between related entities within an enterprise, especially in the foreign direct investment (FDI) sector, and those which use suspicious price determination methods.

The department said bank transactions that involve people who are not staff of relevant enterprises or who lend to enterprises with unclear payment processes via banks would be monitored to determine whether or not there are irregularities.

Individuals must pay special consumption, value-added and income taxes if they sell imported cars declared as gifts at prices much lower or higher than the market prices of the autos specified in the Ministry of Finance’s Circular 195.

In the past time, many e-commerce firms have broken regulations by failing to declare their sales, particularly of products ordered online and paid on delivery. A number of tour operators have been found to let their foreign partners use their tourism licenses for organizing inbound tours for foreign travelers.

HCMC will also crack down on non-invoiced fuel sales which have caused State budget revenue losses. Currently, the city has 532 gas stations.

The report said well-paid artists and other individuals with high incomes would be on the radar as well.

The department said inspections last year resulted in additional tax revenues of VND116 billion from transactions conducted by related enterprises within an organization, VND92 billion from firms which had not been inspected for years, VND92 billion from property transfers, VND27 billion from businesses with unclear transactions via banks, VND27 billion from multi-level marketing companies, and VND15 billion from imported autos declared as gifts.

The city has set a target of carrying out tax inspections into at least 18% of taxpayers and transactions suspected of transfer pricing.

HCMC looks to attain tax revenues of more than VND347.88 trillion (US$15.2 billion) this year, up 15.79% from 2016. The amount consists of VND226.5 trillion from domestic sources, VND109 trillion from imports and exports, and VND12.4 trillion from crude oil.

Dai-ichi Life Vietnam launches priority Australia study program

Dai-ichi Life Insurance Company of Vietnam (Dai-ichi Life Vietnam) on February 22 launched a “Priority Enrolment to Study in Australia” partnership program for customers having children aged up to 12 and planning to send them to Australia for study.

Following the “Priority Enrolment to Study in the USA,” the program for Australia is the second and the only one in Vietnam that combines life insurance and overseas study enrolment, coordinated by Dai-ichi Life Vietnam and Laureate International Universities, an American educational organization.

A Certificate of “Priority Enrolment to Study in Australia” will be issued for those purchasing “An Phuc Hung Thinh” life insurance policies with a duration of 6, 9, 12, 15, 18 or 21 years, in addition to basic benefits such as full coverage against risks, attractive savings with competitive interest rates, periodic cash coupons. It is seen as a passport to the future for their children as they reach 18.

Certificate holders’ children will be entitled to priority entrance to Torrens University Australia, a private university in Australia which belongs to the Laureate International Universities network.

HCMC gets Japan aid to upgrade drainage system

Japan will provide around VND300 billion out of the total VND323 billion (US$14.1 million) needed for a project to upgrade an aging water drainage system in HCMC.

In a report sent to the Ministry of Planning and Investment, the city said the project would upgrade deteriorating sewers in the downtown area to prevent roads from caving in and minimize environmental pollution.

The HCMC Steering Center of the Urban Flood Control Program, the project owner, will repair and rehabilitate 4,000 meters of sewer in districts 1 and 3 between 2017 and 2020.

The city will need VND97.3 trillion (US$4.26 billion) for flood control projects in the 2016-2020 period and has arranged nearly VND23 trillion of the total for projects under way. The city looks to raise the remaining VND74.35 trillion in the next four years.

The city’s population is over 10 million people, excluding migrants. Fast population growth here has caused a five-fold increase in wastewater discharge volume, putting huge pressure on the current drainage systems.

New tech changes recruitment landscape

More companies in Vietnam are applying new technology to recruitment, with Digital HR, Technology HR and HR Analytics growing popular in the human resource world.

Half of the major firms in Vietnam use technology and social networks for recruitment. Recruitments on LinkedIn account for 43%, Facebook 5%, Vietnamworks 28%, Anphabe 5% and other channels 19%, says a company.

Huynh Nhu Tiep at the personnel department of CSC Vietnam Co said new technology had helped her company hire 100% of staff directly instead of through a headhunting firm, thus shortening the recruitment time and cutting costs.

She was speaking at a seminar on the power of technology in recruitment held by the Vietnam Human Resources Club (VNHR) in collaboration with Talentnet in HCMC on February 22.

LinkedIn and Facebook are among the most effective recruitment channels at the moment. LinkedIn offers a variety of tools that allow employers to optimize the search for candidates, greatly reducing the time for recruitment.

Facebook enables employers to access a lot of people as its livestream tool allows them to effectively respond to questions asked by candidates. A company said that after a three-month notice on their Facebook page, they had received 800 job applications, with 80 of them selected.

It is now trendy for enterprises to combine recruitment with branding and marketing thanks to the availability of technology.

However, without proper investment and good preparations, a recruitment campaign on a social network could affect a company’s brand. “Content posted on a social network must be approved by the legal department and the communications department. We also hire outside consultants to handle negative comments,” said a company representative.

Multinationals like Unilever even take a step further by designing scientific and funny games to check whether or not a candidate is fit for a job.

Mekong Beauty Show to show off cosmetics in HCM City

Mekong Beauty Show, the only business-to-business beauty exhibition in Việt Nam, will be held in HCM City from June 15 to 17.

More than 200 exhibitors from Việt Nam, Europe, South Korea, Thailand, Malaysia, Singapore, Indonesia, Malaysia, Japan, China, Hong Kong, and India will take part.

It would be the region’s leading trade platform for beauty professionals seeking to capitalise on the fast-growing market in the four Mekong countries of Việt Nam, Cambodia, Laos, and Myanmar, Nguyễn  Văn Minh, deputy chairman of the Vietnam Essential Oils, Aromatherapy and Cosmetics Association, said.

Claudia Bonfiglioli, international director of Informa Beauty, the show’s organiser, told a press conference in HCM City on Thursday, “The Vietnamese market remains one of great potential for cosmetics and  beauty salon products.

“Việt Nam will become very soon a premium country for cosmetics.”

The annual turnover of the Vietnamese cosmetics market is around VNĐ15 trillion (US$704.2 million), according to figures from Nielsen, the market research giant.

But the average spending by those who buy cosmetics is only US$4 per person per year compared with $20 in Thailand, it said.

According to a report from the HCM City Society of Cosmetics, the country has more than 400 cosmetics businesses, with 90 per cent of the market share cornered by foreign brands.

Most popular domestic brands such as Saigon Cosmetic, Thorakao and Lan Hảo are confined to the low-value segment and mainly export to neighbouring Asian markets, the report said.

Lý Nguyễn Lan Phương, general manager of the Saigon Cosmetic Company, said more than 40 per cent of the company’s revenues comes from exports to Cambodia, Laos, and Thailand.

Dominic OH, director of South Korean company Kintex, said: “Based on the rapid economic growth, with GDP increase of 6 per cent per year, and young people who are familiar with improving their  

appearance, the Vietnamese beauty market will be constantly growing.

“The Vietnamese market is ranked number 1 by K-beauty companies.”

The event, organised by Informa in co-ordination with Kintex at the Saigon Exhibition and Convention Centre in District 7, is expected to attract more than 10,000 business visitors.

HDBank further strengthens ties with Japanese businesses     

The Housing Development Commercial Joint Stock Bank (HDBank) last Tuesday met with a Japanese business delegation led by the deputy mayor of Sakai city.

The delegation included executives from 12 companies that manufacture machinery and equipment.

At the meeting, the two sides spoke about each other’s strengths and discussed possibilities and opportunities for boosting mutual co-operation towards building a comprehensive and long-term co-operation between HDBank and Sakai city.

Through the event, HDBank expected to be a bridge connecting Japanese firms from Sakai and Vietnamese enterprises.

In recent years economic co-operation and cultural exchanges between Việt Nam and Japan have developed rapidly.

In 2014 HDBank and the Japan-based Hyakugo Bank Ltd established a Japan desk to support Japanese companies in Viet Nam.

In May last year HDBank signed an agreement with Senshu Ikeda and Aichi banks to enhance the delivery of services to Japanese firms.

The Vietnamese lender, together with Hyakugo Bank and Banrai Trading Company, organised a business-matching seminar for the Vietnamese and Japanese food industries. 

Lotte mart launches big promotion     

Lotte Mart on February 24 launched Beauty Expo featuring promotions, art performances, joyful activities and other events at all its stores around the country.

To be organised in March and October every year, the programme promises customers a new and enjoyable shopping experience on the occasion of International Women’s Day and Vietnamese Women’s  

Day, Nguyen To Kieu Trinh, Lotte Mart’s marketing director, said.

The first edition of Beauty Expo, which will go on until March 8, has attracted the participation of 250 prestigious brands like Unilever, L’Oreal, Diana, Hoa Thien Phu and Provence, who are offering more than 1,000 items like beauty and healthcare products and gift boxes at discounts of 5-49 per cent.

On weekends customers who buy at least VND300,000 worth of products will get free advice on make-up and skin and hair care and a chance to take part in free flower arrangement and painting classes.

Customers also have a chance to win attractive prizes, including trips to Thailand and gift vouchers worth VND3 million in a lucky draw. 

Japanese brand launches marketing push in Vietnam

Rising incomes, an expanding economy and changing consumer patterns are attracting a growing number of international brands to Vietnam.

Japanese sports brand Mizuno has just gotten on the band wagon having this month announced a marketing push with the signing of football player Nghiem Xuan Tu, volleyball player Nguyen Linh Chi and futsal player Tran Van Vu as brand ambassadors.

Earlier in February, Mizuno signed a US$50,000 contract with Vietnam top badminton player, Nguyen Tien Minh, to work as its brand ambassador.

Boston Consulting Group says Vietnam is Southeast Asia’s fastest-growing middle class. According to BCG the “middle and affluent class” earning US$714 a month or more in Vietnam will double to 33 million people, about a third of the population, between 2014 and 2020.

With forecasts like this, Vietnam can expect to see more brand ambassadors of Japanese and other international brands in the near future. 

Golf industry show heads to Danang in May

Leaders of top golf organizations from throughout Asia will gather in the beach city resort of Danang on May 7-13 for their annual golf course industry and tourism conference.

The CEO panel will include chief executive officers from 240 golf operators from 36 countries along with an estimated 650 representatives of travel agencies, airlines, government agencies and other tourism related organizations.

The program will allow these leaders to share their organizations’ specific insights on key industry challenges, including water use, player development, tourism promotion and delivering profitability.

It will also give the golf industry the opportunity to showcase how allied organizations are working together to strengthen advocacy efforts with governmental policy makers and communicate with golfers of all ages.

Hundreds of exhibitors are expected, with most coming from the four segments of equipment, turf applications, golf carts and accessories. The show also features marquee events with entertainment, networking and recognition of award winners and industry leaders.

Canadian Minister leads trade mission to Vietnam

The Canadian Minister of Agriculture and Agri-Food is leading a trade mission to Vietnam and India as part of his government’s efforts to strengthen and expand Canada’s trade relationships in the Asia-Pacific region.

During his visit on February 26-March 10, Canadian Minister MacAulay will be meeting with his Vietnamese and Indian counterparts as well as industry representatives to discuss topics of common interest, expand new opportunities in key Asian markets, and strengthen Canada’s relationship with the two countries.

He will be accompanied by a group of Canadian industry associations representing a variety of agriculture, agri-food and seafood segments to demonstrate his government’s efforts to strengthen and expand his country’s middle class job opportunities, supported by trade relationships in the Asia-Pacific region.

Last year, Canadian businesses exported more than US$187 million and US$916,560,000 in agricultural, agri-food, fish and seafood products to Vietnam and India, respectively.

Canada is the 5th largest agricultural exporter in the globe, and the agriculture and agri-food industry employs 2.2 million Canadians, or one out of every eight jobs in the North American country.

Stock market, a good channel for capital mobilization

Ho Chi Minh City contributes 90% of Vietnam’s stock market value. Last year the city recorded capitalization growth of 30% and market liquidation of 24%. The authorities and businesses expect that the stock market will do better this year.

At the Ho Chi Minh City Stock Exchange (HOSE)’s first trading session of the New Year, Secretary of the municipal Party Committee Dinh La Thang  said with last year’s results and acceleration of state-owned enterprise equitization, the city’s stock market will have momentum to grow this year.

Mr Thang pledged “to help businesses become stronger and more efficient. We’ll help businesses and the Stock Exchange grow because their success is Ho Chi Minh City’s success.”

Economists say the stock market continues to be an effective channel for mobilizing resources for the economy. Ministries and sectors have stepped up national economic reform and state-owned enterprises equitization. 

Last year large-cap stocks pushed the market up, with seven of the 10 highest-valued stocks gaining, including Vinamilk, BIDV, Vietcombank, Vietinbank, and insurer Bao Viet Holdings.

In January, the Vn-Index surpassed 697 points, up 5% since late 2016. It was VN-Index’s highest mark in 9 years. 

Economist Tran Hoang Ngan said, “This year, Vietnam’s stock market will have more commodities. Market capitalization will amount to about 50% or 60% of the national gross domestic product.”

Vice General Director of the Ho Chi Minh City Stock Exchange Le Hai Tra recommends raising Vietnam’s stock market ranking to attract foreign investment. 

He said, “We have to increase the number of big companies on the bourse and the rank of Vietnam’s stock market. It will help draw foreign investment to Vietnam.”

According to Vu Bang, Chairman of the State Securities Commission (SSC), there will be more opportunities for HOSE to grow stronger in 2017 as the government continues to remove difficulties for enterprises.

“We’ll continue to reform the structure of Vietnam’s stock market and bourses in HN and Ho Chi Minh City to make them more dynamic,” said Bang.

Equitization of state-owned enterprises will increase commodities for the stock market and create a new investment wave for HOSE in particular. In addition, flexible monetary policies in 2017 and steady interest rates will create more growth opportunities for the stock market.

Vietnam to collect tax arrears from online hotel booking services

Foreign-based online accommodation booking services will be the next to be targeted by Vietnamese tax authorities in an effort to improve fair competition for local businesses.

At the end of 2016, Vntrip.vn – a Vietnamese online hotel booking site – publicly accused its rival Agoda.com of having avoided performing its tax duties in Vietnam despite having expanded its operations to the Southeast Asian country.

Agoda.com, a Singapore-based company, has run its Vietnamese version since 2010 and currently cooperates with over 9,200 local hotels and vacation rentals.

According to Le Dac Lam, CEO of Vntrip.vn, the Singaporean booking service pockets as much as 20% of the room prices paid by customers to its partner hotels, while not being taxed at all on the income.

The executive estimated that the total revenue of Vietnam’s hotel industry would be around US$21 billion in 2020, 50% of which will be coming from online hotel booking services, equivalent to US$10.5 billion.

At the commission rate of 20%, such foreign-based booking sites as Booking.com or Agoda.com would be bagging billions of untaxed dollars that could have gone to Vietnam’s government budget, Lam said.

Responding to Vntrip’s denunciation, the Vietnamese Ministry of Finance last month issued a dispatch demanding that provincial and municipal tax bureaus impose tax policies on online accommodation booking services provided by foreign companies in Vietnam. 

Sites such as Agoda, Traveloka, Booking and Expedia are subject to both value-added tax (VAT) of 5% and a corporate income duty of 5% based on their revenue, the dispatch reads.

The Vietnam-based partners of these companies are responsible for the declaration and payment of tax on their behalf, and the State Bank of Vietnam is to work closely with tax authorities in monitoring the revenue of the firms based on their customers’ transactions, according to the ministry.

In an interview with Tuoi Tre (Youth) newspaper, Nguyen Nam Binh, deputy director of the Ho Chi Minh City Tax Bureau, said foreign entities and individuals who do business in or receive income from Vietnam are subject to foreign contractor tax (FCT), which is basically comprised of VAT and corporate income tax, even if they are not legally represented in the country.

“The dispatch by the Ministry of Finance is just a clarification of this law rather than the introduction of a new one,” Binh explained.

He said Ho Chi Minh City would continue to carry out inspections on local hotels to check their tax compliance and collect tax arrears from all payments made by these hotels to foreign online booking sites.

GotIt! has new CEO

GotIt!, an on-demand marketplace founded by Mr. Tran Viet Hung, has a new CEO.

The startup’s co-founder Mr. Peter Relan replaced Mr. Hung on February 23 and it launched its new website www.gotitapp.co! on the same day.

“I finally convinced my co-founder Peter Relan to run GotIt! as CEO, focusing on the business side, and I’ll focus on products, engineering, and cool tech,” Mr. Hung said. “This year will be epic.”

Mr. Relan is best known as Co-founder of GotIt!, Co-founder & CTO of Webvan and Founder of gaming and mobile incubator YouWeb in Silicon Valley. He funded and became co-founder of GotIt! In 2013.

GotIt! instantly connects students with an expert, who interactively works with them through a step-by-step explanation of school work problems in ten-minute sessions. It became the second-most downloaded education app on the App Store in the US, following only Apple’s iTunes.

Established in 2013, the startup is headquartered in Silicon Valley, where it has attracted talent who previously worked for tech giants such as Google, Facebook, and Oracle. The company also has a branch in Vietnam where it employs engineers. It successfully raised over $9 million in Series A and seed funding on April 29 last year.

Criteo marketing techonology boosts Tiki’s revenue by 64%

Criteo’s technology helped Tiki record a 184 per cent increase in its app conversion rate and a 64 per cent increase in monthly revenue in just three months, Tiki announced on February 22.

Tiki evaluates a marketing channel’s effectiveness by examining how it improves customer engagement, sales acquisition, and overall revenue. Since July last year, Criteo’s performance marketing solutions have delivered positive results to Tiki’s branded mobile app, with a 67 per cent increase in average order value.

Vietnam is a truly a “mobile-first” market. Ninety-seven per cent of local shoppers are regular users of mobile shopping apps, of which 88 per cent have completed purchases via an app. In order to effectively convert consumers of PCs and smartphones, Tiki turned to Criteo’s cross-device and in-app performance marketing solutions.

Powered by the Criteo Engine, these solutions use machine learning to compute an individual’s preferences and readiness to purchase, by assessing online browsing behavior across devices. It then automatically delivers personalized content – relevant and recommended products – after a shopper has exited Tiki.vn. This encourages the user to return and complete a purchase.

According to research by Criteo, shoppers use apps like Tiki.vn because they enjoy the variety of goods and services available on a single platform. But large product catalogues mean consumers are often unaware of certain products that best meet their needs. To ensure they discover the right products, e-commerce providers must use technologies that empower them with a more personalized customer engagement strategy.

“Criteo’s performance marketing solutions allow for more meaningful shopping experiences and thus increase interactions and conversions, further driving e-commerce growth for retailers in Vietnam,” said Mr. Alban Villani, Commercial Director, Southeast Asia, at Criteo.

“Criteo’s ability to deliver highly personalized advertising content helps consumers discover products that truly meet their needs,” said Mr. Phan Tuan Anh, Head of Marketing at Tiki. “This has increased positive customer interactions and enhanced our status as a trustworthy e-commerce provider. Criteo has become an important partner for Tiki and we are very satisfied with the results so far.”

Founded in 2010, Tiki was one of the first e-commerce startups in Vietnam. After achieving success as an online bookstore, the company began diversifying its offerings six years ago to include electronics and lifestyle goods. However, its vast online catalogue of more than 300,000 products soon became hard to manage. While Tiki was regularly updating its inventory with new items to meet a variety of needs, it found that the millions of daily website and mobile app visitors were unable to keep up with its latest products. This made it challenging to drive sales conversions for these new offerings.

Đồng Nai to increase cocoa cultivation area

The southeastern province of Đồng Nai expects to grow an additional 500ha of cocoa by 2018, bringing the total area of cocoa in the province to 1,000ha.

The province’s Department of Agriculture and Rural Development said it was implementing six large-scale cocoa fields.

Nguyễn Hữu Định, the head of the province’s Rural Development Sub-department, said besides implementing large-scale cocoa fields, the province has also provided farming techniques, loans and fertiliser to farmers.

The province’s cocoa productivity has increased to 10 tonnes per ha.

Trọng Đức Cocoa Co, which takes part in a large-scale field project, has signed purchase of long-term contracts with farmers to guarantee cocoa outlets.

The company buys cocoa at a price of more than VNĐ6,000 per kg (US$0.28), higher than the market price. Purchase price may change based on the market price.

Cocoa trees are easy to grow, have less disease and can be harvested in more than 10 years, according to cocoa farmers in Đồng Nai Province’s Định Quán District.

The total investment for one ha of cocoa is about VNĐ20 million ($900) and the profit will be VNĐ50 million ($2,240) a year, they said.

This year, Đồng Nai farmers will grow 200,000 cocoa trees on 250ha, according to Đặng Tường Khanh, the director of Trọng Đức Cocoa Co.

The company’s products from cocoa, which include chocolate and wine, are exported to South Korea and Japan.

Trà Vinh destroys thousands of smuggled cigarettes

The Cửu Long (Mekong) Delta province of Trà Vinh on Thursday destroyed  58,000 packages of smuggled cigarettes and 297 goods that had unknown origin or were counterfeit.

The province’s Steering Committee 389, which combats smuggling, commercial fraud and counterfeit goods, burned all the packages that were found.

More than 40,000 packages were Hero brand cigarettes; 14,000 were Jet cigarettes; and 1,620 packages were Scott cigarettes.

Counterfeit goods and goods with unknown origin included children’s toys, watches, cosmetics, medicine and phone accessories.

Last year, Steering Committee 389 found 100,000 smuggled cigarette packages and handed out fines of nearly VNĐ3 billion (US$135,000).

Nguyễn Xuân Hiệp, deputy director of the province’s Department of Industry and Trade, said that Steering Committee 389 fined violators involved in 1,222 cases last year.

Of the total number, 576 cases involved transportation of prohibited or smuggled goods; 507 cases, commercial fraud; and 34 cases, counterfeit goods.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR

Reorganising production and producing high-quality rice with retraceable origins will increase Vietnamese rice’s value on the international market amid fierce competition from foreign products, experts have suggested.

Workers at Hau River Food Company in the southern Can Tho Province load rice for export

Vietnam has been one a top rice exporter for decades but the value remains low as the country’s rice lacks its own trademarks.

Statistics showed that Vietnam exports from 6-8 million tonnes of rice each year but only earns 3.7 billion USD. 

A lack of prestigious brands, inability to control chemical residues and untraceable origins are the weaknesses of Vietnamese rice, especially in demanding markets.

According to experts, Vietnam needs to focus on creating high-quality rice brands because the market has become saturated.

The diversification of markets is another path for Vietnamese rice, according to Pham Van Chinh, head of the Export-Import Agency under the Ministry of Industry and Trade.

VNA