Deputy PM urges equitisation of State-owned businesses

The renovation and development of State-run enterprises should be accelerated in a more practical manner with the focus on accelerating equitisation and avoiding capital losses.

Deputy Prime Minister Vuong Dinh Hue made the statement at a recent meeting of the Steering Committee for Business Renovation and Development, in Hanoi, on November 30.

Speaking at the meeting, Deputy PM Hue requested that the ministries, localities, economic groups and State companies continue to implement the resolutions of the Party, Politburo, and National Assembly, as well as the directions outlined by the Government and the Prime Minister on State-run firms.

The Deputy PM urged them to revise, supplement and finalise the legal documents on equitisation and the sale of State capital.

The Steering Committee for Business Renovation and Development should continue to be responsible for inspecting the arrangement, renovation and development of State business operations, he added.

According to the report of the Steering Committee, during the January-November period, ministries, branches and localities have equitised 21 SoEs, including four corporations: Song Da, IDICO, Becamex Binh Duong, Thanh Le Binh Duong. As many as 55 SoEs are scheduled to be equitised in 2017, equal to the number of equitised enterprises in 2016.

Korean business seeks production opportunities in Ha Nam

ILMI Agriculture & Fisheries Co. Ltd from the Republic of Korea plans to grow radishes in the northern province of Ha Nam, heard a working session between the company and the provincial People’s Committee on November 30.

Oh Young Cheol, chairman of the company, said that the firm is farming 40 hectares of radish in Bac Ninh province and wants to expand to Ha Nam due to its fertile soil.

At first, radishes will be planted on a trial basis and these plants are a success, the company will expand cultivation to an area of 330 hectares, he said, noting that his company wants to set up a five-hectare production plant and needs 500 workers.

According to Vu Dai Thang, Vice Chairman of the provincial People’s Committee, Ha Nam province prioritises high-tech agriculture and will create ideal conditions for the company to operate in the locality.

The company can sign contracts with local people and provide them with seedlings, technology and techniques to carry out the project, Thang suggested.

The province will arrange area for ILMI to construct an agricultural production plant at Dong Van IV industrial zone and provide preferential policies together with favourable conditions for electricity, water, recruitment and security, he added.

After the working session, ILMI company went on a fact-finding tour at Dong Van IV industrial zone.

Argentina seeks to spur farm exports to Vietnam

Eleven firms from Argentina are sounding out cooperation opportunities with Vietnamese firms to further boost farm exports to the local market.

A two-day program designed to match businesses from the two countries and held by the Investment and Trade Promotion Center (ITPC) and the Argentinean Embassy in Vietnam began on November 29 in HCMC. A similar event will take place in Hanoi tomorrow.

These Argentinean firms are introducing cereals, seafood, meat and by-products to Vietnamese consumers, mainly those in HCMC and Hanoi.

The business matching program is an opportunity for Vietnamese firms to tie up with Argentinean suppliers of products for domestic consumption and export.

Ignacio Malvasio, deputy director of Frigorifico Qualita S.A which specializes in pork processing and trade, said the company exports some 27 tons of pork products to Vietnam a year and expects to find local partners to boost the volume and diversify export products.

Leandro Boerr, general director of MCM Agro Producer Co Ltd, a processor of beef and chicken, said the company has been present in Vietnam for 10 years but it wants to increase sales of its products in Vietnam.

MCM Agro monthly ships some 10 tons of chicken products to Vietnam and the volume is projected to soar 30% in the next six months. It also wants to export five to six tons of beef and internal organs of cows to Vietnam a month.

Economic and commercial ties between Vietnam and Argentina have considerably grown since the two countries established a comprehensive partnership in 2010 with average annual growth of 20% in 2012-2016. Argentina is one of Vietnam’s most important partners in Latin America, said ITPC deputy director Ho Xuan Lam.

Bilateral trade amounted to US$2.3 billion in 2015, US$2.9 billion in 2016 and US$2.3 billion this year to the third quarter. The number may reach US$3.5 billion in all of 2017.

With a population of 96 million people by November and a rise in disposable incomes, Vietnam is a potential market for Argentinean exporters. According to data of the General Department of Vietnam Customs, Vietnam spent US$2.25 billion importing corn, soybeans, oil, cattle feed, wood, cotton and materials for the textile and footwear sectors in the first 10 months of 2017.

Rosario Martearena from the Argentinean Ministry of Agriculture said last year Vietnam was the fourth largest buyer of Argentina’s products with US$2.5 billion in revenue, after Brazil, China and the U.S. However, Vietnam mainly bought soy, corn and wheat flour, so Argentina expects to export more products to Vietnam such as beef, goat meat, seafood, soy protein, cattle feed and cereals.

HoREA voices concern over property tax in HCM City

A pilot scheme to tax land and landed properties in HCMC would help increase budget revenue but leave adverse effects, such as land and apartment price spikes, according to the HCMC Real Estate Association (HoREA).

Many countries apply assets tax, mostly to land and landed properties, to create a source of stable revenue for governments, said HoREA. For example, the U.S. state of California levies a 1.23% annual tax on asset value.

However, according to HoREA, Vietnam’s real estate market is just recovering. Home prices are still high, around 25 times higher than the average income of the Vietnamese.

The middle class in HCMC is expanding rapidly and gross domestic product (GDP) per capita is over US$5,000, which is forecast to exceed US$10,000 by 2020. However, living costs in HCMC are higher than in other provinces.

HoREA proposed the National Assembly delay the pilot scheme in HCMC until after 2020. If approved, the scheme should apply nationwide.

High prices of land and apartments are partly caused by tax and land use fee, said HoREA chairman Le Hoang Chau, adding the land use fee is not a tax but it is a huge source of State revenue.

The land use fee accounts for less than 10% of an apartment’s value, 30% of a townhouse’s and 50% of a villa’s. If property tax is applied, the land use fee should be cut, Chau proposed.

He said the property tax in HCMC would make financial obligations of property owners heavier, driving away investment.

Hokkaido-HCMC direct flights expected next year

Japan’s Hokkaido Prefecture is planning to launch direct air service to HCMC next year to promote tourism and trade cooperation between the two places.

After vice governor of Hokkaido Yasuhiro Tsuji talked about the prefecture’s effort to set up a direct air link with HCMC at his meeting with the city government last Friday, HCMC chairman Nguyen Thanh Phong expressed his hopes that the air service could be launched next year.

Joining Yasuhiro Tsuji were Japanese businesses that want stronger trade and tourism cooperation between Hokkaido and HCMC.

According to the Hokkaido official, around 5,000 Vietnamese are working and living in this northernmost prefecture of Japan. Hokkaido is strong in agriculture and fisheries, and needs human resources in the fields of forestry-seafood processing and agricultural machinery.

Many enterprises of Hokkaido have invested in HCMC, especially in the catering industry, Tsuji said.

Of 93 countries and territories making investments in HCMC, Japan ranks sixth. HCMC gives priority to investment in high-tech agriculture, supporting industries, infrastructure construction, personnel quality improvement and tourism.

Phong said there is growth potential in tourism cooperation between the two localities as well as the two countries.

HCMC welcomed 5.1 million foreign tourists in the January-October period, 292,000 of them from Japan. The number of Japanese arrivals to HCMC last year was 500,000.

SCIC upbeat about forthcoming share sales

The State Capital Investment Corporation (SCIC) has expressed optimism that it could raise around VND8 trillion by selling State-held shares at five enterprises next month.

Nguyen Chi Thanh, deputy general director of SCIC, said SCIC will offer shares owned by the State at five companies as planned early this year.

Given the current market prices of the shares to be offered, their combined value would be VND10 trillion, Thanh said on the sidelines of a roadshow last Friday on investment opportunities at four firms – Tien Phong Plastic Company, Binh Minh Plastic Company, Domesco Medical Import Export Corporation and FPT.

A day earlier SCIC, the Government’s investment arm, held a roadshow to introduce a plan to sell its shares in Vietnam Construction and Import-Export Corporation in Hanoi.

SCIC plans to offload its entire stakes at the five companies, with State ownership at some firms amounting to 30%. Whether Tien Phong Plastic Company will revise up the foreign ownership limit to 100% or not remains unknown as its general meeting will not take place before November 30, so investors may not snap up the volume to be put up for sale, Thanh said.

SCIC’s divestment plan is supported by a couple of factors such as the VN-Index rise to a 10-year high, and Vietnam’s successful hosting of the APEC Economic Leaders’ Week 2017 and high economic growth.
Furthermore, these five enterprises are leaders in their respective sectors, so their shares are attractive, Thanh noted.

SCIC will launch the sale of its shares at Binh Minh Plastic Company on December 8, FPT on December 11, Domesco on December 12 and Tien Phong Plastic on December 13. It will announce their starting prices from late this month.

Unlike the sale of State-owned shares at Vinamilk, investors must deposit and pay in Vietnam dong only if they want to join the share auctions.

SCIC will offer over 24.1 million shares at Binh Minh Plastic, or a 29.5% stake, 31.6 million shares at FPT (5.96%) and 12 million shares at Domesco (34.71%). It will announce sale volume at Tien Phong Plastic on November 30.

Work resumes on long-stalled Happyland project

Construction restarted Saturday on the US$2-billion Happyland entertainment complex in the Mekong Delta province of Long An, which had been delayed for a long time due to financial difficulties.

Developer Phu An Infrastructure Investment and Development JSC, a subsidiary of Khang Thong Group, and its strategic partner Vina Oscar Hotel Limited from Hong Kong will build some key components of the project like a five-star hotel with more than 1,000 rooms, a resort, a leisure park and a commercial center.

Speaking at the groundbreaking ceremony for these components, Austin Currie of Vina Oscar Hotel Limited said his firm had reviewed the project before making an investment decision. According to Khang Thong Group, Phu An has transferred an 88% stake in the project to Vina Oscar Hotel Limited with a total value of US$668 million.
The investor has completed necessary paperwork, fulfilled tax obligations, paid site clearance compensation, paid a 50-year land rent and leveled about 318 hectares of land.

After six years of construction, some facilities have been complete, including a Vietnamese cultural area, a playground for children, a race track, a floating market and a riverside resort.

Addressing the ceremony, Phan Thi Phuong Thao, chairwoman of Khang Thong Group, said the participation of the strategic partner, who has strong finances and management skills, will help turn around the project.

Covering 338 hectares along Vam Co Dong River in Ben Luc District, Long An Province, the Happyland entertainment complex is expected to be the Vietnamese version of Disneyland. It is planned to become one of the biggest entertainment and commercial centers in Southeast Asia with theme park, convention center, hotel, restaurants and other facilities.

Retailers trends to cooperate with small, medium enterprises

Domestic and foreign retailers have trended to cooperate with small and medium enterprises (SMEs) to diversify their products and head toward export.
 
In mid-June this year, Lotte Mart exported its first consignment to Myanmar with over 100 products under the supermarket’s Choice L brand, produced by Vietnamese SMEs. According to plan, Lotte Mart will continue exporting to China and Indonesia.
Mr. Yoon Byung Soo, director of Lotte Mart Vietnam’s product strategy division, said that last year Lotte Mart Group imported Vietnamese goods worth VND1.3 trillion to provide supermarkets in some Southeast Asian nations. This year, the value of is expected to approximate VND2 trillion ($57.2 milion).
The group will speed up purchase of banana, mango, dragon fruits and products for daily use with outstanding quality and reasonable prices.
This year, Big C Vietnam has established a division in charge of SMEs assistance and development through program ‘Siding with Vietnamese brand names’ to diversify products on shelves of Central Group Vietnam.
Director general of the group and Big C Vietnam Phillippe Broianigo said that after a period of implementation, the program has been attended by many SMEs and gained positive changes. At present, products of many SMEs have been shelved at Big C supermarkets.
Right after buying Metro Cash&Carry, Thai Berli Jucker Group has applied the priority policy to choose producers who have not had brand names in the market, cooperate with them to develop private brands for the supermarket. Products will be in the two sides’ names.
The supermarket will supervise production phase and provide advices to improve production process and packaging design.
Domestic supermarket system Saigon Co.op has been seeking qualified producers to work with them to develop products under Co.op Mart brands.
For the last recent years, Saigon Co.op has cooperated with Singapore’s leading retailer NTUC FairPrice to choose products to develop Co.op Mart brands for export to Singapore.
At a forum themed ‘the story of brand names’ hosted by Big C recently, Mr. Nguyen Xuan Ton, owner of Long Trieu Coffee Company in Lam Dong province, said that building brand name for SMEs like the company was very difficult. For a long time, customers did not know the company’s products. So he had decided to join hands with Big C to develop Long Trieu brand name.
In fact, not all SMEs attending supply chains can keep their brand names like Long Trieu. Most have produced goods for distributors’ brands.
There are some controversial opinions saying that producers will lose themselves if keeping making goods for distributors. In response, a business making goods for a supermarket said that it was an initial success for it to be chosen by the supermarket to attend in the supply chain. That helped the company learn about operation way of a retailer and the market. They were usually short of these knowledge for just focusing on production.
According to some businesess, producers must thoroughly know about legal conditions when negotiating to cooperate with distributors. For instance, product quality certificates and food hygiene and safety licenses of industrial foodstuffs belong to the producers not retailers.
Ms. Nguyen Phi Van, international franchise consultant, said that amid expanding global integration, the survival of businesses especially SMEs much depend on their visions. They need to broaden visions to international markets to survive, develop sustainably and strongly in the domestic market.

Counterfeits threaten businesses: workshop

The fight against counterfeits and intellectual property infringements has been more difficult and fiercer with increasingly sophisticated tricks, causing risks for both businesses and consumers and considerable damage for the economy.
 
That was stated by businesses at a workshop hosted by National Office of Intellectual Property of Vietnam in HCMC yesterday.
One of the risks was the possibility that businesses might be sued back by fake makers, they said. Intellectual property infringement has developed complexly. However, handling has been costly and time consuming.
Mr. Nguyen Ngoc Ty, chief executive of Son Hat Fashion Company, said that counterfeits caused heavy damage for the company while violators had accepted to pay fines which were not deterrent enough.
Similarly, leaders of Spark Plug NGK Vietnam Company, specializing in making spark-plugs told that their products were faked and sold publicly. Therefore they have proposed authorized agencies to take the initiative in assisting the company, tightly supervise spots selling counterfeits to protect genuine businesses and consumers.
Mr. Tran Giang Khue, deputy representative of the National Office of Intellectual Property of Vietnam in HCMC, told that there are businesses operating for a long time with known brand names in the market. Still they have forgot to register intellectual property rights and been sued back by fake producers when proceeding against them. The issue has not only occurred in Vietnam but also abroad.
Many Vietnamese brand names such as Vintaba and Buon Me Thuot coffee have been registered in China, Trung Nguyen Coffee in the US and Duy Loi foldable hammock design in Japan. That is a lesson which businesses should pay attention to, said Mr. Khue.
Businesses have been more and more interested in intellectual property rights with the number of registrations having highly increased in recent years. In 2016, the National Office of Intellectual Property of Vietnam received about 60,000 registrations, up 15 percent over 2015 and triple the number in 2013.

Vietcombank yields over $15 million from divestment

Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) yesterday auctioned 19.8 million shares from Vietnam Cement Finance Company (CFC) and Saigon Bank for Industry and Trade (SaigonBank), yielding over VND342 billion (US$15.06 million).
 
At the first auction session, 6.6 million shares of CFC were offered for sale at the starting price of VND11,549 a share. Nine individual investors registered to attend the session and purchased all at the price of VND11,554 a share. The value of the share sale tops VND76 billion ($3.35 million).
The auction session of Saigonbank shares was hosted by Hanoi Stock Exchange (HNX) on the same day. Over 13.2 million shares were offered for sales at the starting price of VND12,550 a share, equivalent to 4.3 percent of Vietcombank’s capital at Saigonbank.
Investors registered to buy up to VND53.8 million shares, quadruple the offered for sale volume. Closing the session, HNX announced the highest ordered volume was 13.2 million and the lowest order was 100 shares with the highest price being VND20,100 and the lowest at VND12,550.
All of 13.2 million shares were sold at the highest price, bringing Vietcombank VND266 billion ($11.71 million).

State capital investor must divest from 85 SOEs

Leaders of State Capital Investment Corporation (SCIC) has said that the company had withdrawn state capital from 30 of 115 state own enterprises according this year plan, so it had to divest from 85 companies in the rest two months this year.

So far, the corporation has conducted state capital withdrawal from 975 enterprises with the total revenue of VND27.5 trillion (US$1.21 billion), nearly 3.4 times cost price.
From now until 2020, the company will continue divestment from 140 enterprises, comprising large ones such as Vinamilk, PetrolVietnam Oil Corporation, Vietnam Military Bank, Bao Viet Group, Bao Minh, Vinaconex, Tien Phong Plastics Company, Hau Giang Pharmaceutical Joint Stock Company, Traphaco and Domesco.

PM approves agricultural restructuring plan in 2017-2020

Prime Minister Nguyen Xuan Phuc has approved a plan to restructure the agriculture sector in 2017-2020, which aims to make the best use of advantages in each region and locality.

The plan targets gross domestic product (GDP) growth of 3 percent per year by 2020. Average labour productivity is expected to expand by 3.5 percent per annum and the proportion of labour in agriculture will fall to below 40 percent. About 22 percent of agricultural workers will receive training. 

Fifty percent of communes are hoped to become new rural areas while 15,000 cooperatives and unions of agricultural cooperatives will operate. The plan also targets most residents in rural areas having access to hygienic water.

In cultivation, the country will shift to grow crops adaptive to climate change and suitable with each region, develop concentrated and large-scale production areas, adopt chain production for national key products, and encourage the development of clean and organic agriculture.

The plan also calls for more applications of science and technology in the sector to create high-quality varieties, adopting intensive farming, reducing the use of pesticides, replacing ineffective rice cultivation land to grow other crops, and promoting aquatic breeding.

The country will also develop household livestock, organic and ecological animal husbandry, and value production chains in addition to building brands, reorganising the slaughtering system to ensure food safety and hygiene and environmental protection, inspecting and controlling diseases effectively, and tightening the examination of the use of veterinary drugs and additives in the field. The livestock industry aims for annual production growth of 4.5-5 percent.

Meanwhile, the seafood sector will promote offshore fishing and invest in modernising processing equipment and storage on board to reduce losses, with growth of 4.5-5 percent per year expected.

Experts discuss finance in digital era

The function of finance has developed remarkably in recent times to meet the constant changes brought about by technological evolution, a seminar heard in HCM City on November 22.

“Finance now is not only controlling or saving expenditure but also has a very important effect on businesses strategy,” Hiroaki Endo, Asia President of the International Association of Financial Executives Institutes, said in his opening speech at the ninth annual Vietnam CFO Forum.

“There are many enterprises that have adopted new technologies including artificial intelligent (AI). But the future of finance in the digital era needs to be discussed more.”

Nguyen Xuan Thanh, lecturer in public policy, Fulbright University Vietnam, spoke about the Asian and Vietnamese economic outlook.

“This year global economic activity has been strengthened. In Asia, higher domestic demand sustains growth in China. Indian growth suffers from currency demonetisation and tax reform while strong external demand boosts growth in ASEAN.”

In Việt Nam, after a slowdown in the first quarter, the economy grew strongly in third quarter, at 7.5 per cent year-on-year. The economy is expected to grow by 6.7 per cent this year, he said.

“However, Vietnamese economic growth is underpinned by strong FDI-led manufacturing activity and services.”

Its manufacturing Purchasing Managers’ Index (PMI) indicated strong manufacturing performance compared to other economies in the region, he said.

The economic growth is driven by both strong private consumption and exports, he said.

“Private consumption rose by 7.3 per cent year-on-year in the first nine months of this year while exports went up 20 per cent.”

Low inflation and the stable exchange rate are other reasons for the high economic growth, he said.

“Headline inflation rose early this year due to adjustments made to government administered prices (in health and education), while core inflation remains low at 1.3 per cent.

“The exchange rate has remained stable while strong FDI flows and remittances have increased foreign exchange reserves to US$45 billion from $39 billion late last year.”

But the limited fiscal space is a big problem for the economy.

“The government has been running a budget deficit of around 6 per cent of GDP in the last five years, public debt as a percentage of GDP is approaching the 65 per cent statutory ceiling, and some fiscal consolidation is expected in 2017 with a target for the primary deficit of 3.5 per cent.

“The 6.7 per cent GDP growth this year will help reduce the public debt level to 62.6 per cent of GDP (down from 63.6 per cent in 2016).”

To stimulate growth, the Government has an accommodative monetary policy, he said.

“The pressure on the Government to achieve the growth target with limited fiscal space means monetary policy has to be very accommodative with policy interest rate already cut by 0.25 per cent and lending rate by 0.5 per cent while the credit growth target has been revised up from 18 to 21 per cent.”

Next year the Government hopes to achieve GDP growth of 6.5 – 6.7 per cent, and could also hike taxes to compensate for the narrow fiscal space, he said.

Chun Wee Chiew, head of policy at the Association of Chartered Certified Accountants (ACCA) spoke about ethics in the digital age.

“Eighty nine per cent of people who were asked [in a global survey] believed that strong ethics will become more important in the digital age.

“Ninety four per cent agreed that the fundamental principles for accountants established by the International Ethics Standards Board for Accountants still apply and remain relevant in the digital age.”

These principles are integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.

Chun listed three action points required by professional accountants: acquiring knowledge of emerging technologies and digital issues, combining process control with a strategic view and evaluating mechanisms for reporting unethical behaviour.

The conference was organised by the Vietnam Chief Finance Officers Club in co-operation with the Japan Association for Chief Financial Officers (JACFO) and the ACCA, and over 300 CFOs took part.

Winners of Practical Money Skills 2017 announced

Students from six universities were announced as the winners of Practical Money Skills 2017, a financial literacy programme designed to help young Vietnamese adults learn how to budget, save, and spend responsibly.

Run by global payments technology company Visa and the Central Committee of Vietnam Students’ Association (CCVSA), this year’s programme tasked students with using the medium of photography to share their personal stories of overcoming difficulties they have faced in managing their finances.

After six months, the programme has reached millions of students across Vietnam and other countries in the region. The winners will share a prize pool of VND29,000,000 ($1,300), including flights to Singapore—to experience life in one of the biggest financial centres in Southeast Asia.

“We’re very pleased that the programme has continued to reach new heights in its sixth year—this is testament to the work of CCVSA, who have been unwavering in their support for this programme in their commitment to providing the next generation of Vietnamese adults with important life skills,” said Sean Preston, Visa country manager for Vietnam, Cambodia, and Laos.

Under the topic “Every cent worth challenge,” the 2017 programme was run in two main phases. Starting in May, the first phase received nearly 1,000 entries from 46 universities in 20 provinces, cities, as well as from Vietnamese students studying abroad in the US, Germany, Korea, and Australia.

The 50 best submissions entered the second phase, in which six exhibitions and financial literacy workshops were held in six universities across the country.

Nguyen Minh Triet, permanent vice chairman of the CCVSA, said, “With the goal of continuing to create a platform for students to experience, test, and learn more about practical money skills, the new 2017 programme promotes creativity through the sharing of students’ experiences in life, work, and startups. The 2017 programme saw a marked increase in the number of submissions, as well as visits to the fanpage and the website of the programme, as well as received the participation of Vietnamese students studying abroad.”

Running annually since 2012, Practical Money Skills has used a range of different formats to teach students about a topic that, while important, is often challenging to engage.

In previous years, students have been tasked with everything from running discussion forums, designing posters, developing media plans and messages to creating videos.

Each year, the programme seeks to expand its geographical reach. In 2017, Visa and CCVSA expanded the programme outside the country, opening it to overseas Vietnamese students.

In addition to reaching approximately 20,000 students through a chain of workshops and exhibitions, this year the programme’s Facebook fanpage garnered 29,000 fans and more than 500,000 engagements. Similarly, the official Practical Money Skills website had more than 52,000 visitors, and the programme’s YouTube channel achieved nearly 1.9 million views.

As part of the programme, Visa also gave away 5,000 copies of “The Guardians of the Galaxy” financial literacy themed comic book. The comic pairs Marvel’s iconic superheroes with Visa’s financial smarts, which makes learning about finance management fun and entertaining for students.

A range of resources are available on the programme’s Facebook page, Instagram, and YouTube to teach students the basic concepts of spending responsibly while learning to save and budget wisely.

The official programme website (kynangquanlytaichinh.com.vn) continues to provide useful advice from programme mascot Mr. Pocket, together with handy financial formulas and other tools.

International conference on automation organised in HCM City
     
The fourth International Conference and Exhibition on Automation and Industrial Equipment (VAAC 2017) will take place at the Sai Gon Exhibition and Convention Centre, HCM City.

The event is organised from November 29 to December 2.

The exhibition will be hosted by the Viet Nam Automation Association (VAA) with support from the HCM City University of Technology to provide a platform for connecting policy-makers, scientists and enterprises from Viet Nam and overseas.

The event will feature a series of conferences, exhibitions and business forums that focus on issues of common concern, such as smart city, smart transportation and automation in agriculture and forestry.

VAAC 2017 will highlight control and automation towards the fourth industrial revolution with the presentation of 115 scientific studies in cybernetics, automation and other topics.

The forum will host seminars and discussions on automation, renewable energy, smart city and startup innovation, as well as mechanics, chemical and printing technology.

Some 500 booths run by 310 exhibitors from 15 countries and territories will showcase latest products and advanced technologies in automation and chemicals, in line with machines and equipment, industrial products and materials.

VMware launches new solution at VForum
     
VMware, a global provider of cloud infrastructure and business mobility, announced its new business partnerships and digital solution products at its annual Vforum held in HCM City on Monday.

The company said that it had demonstrated how enterprises can achieve business outcomes with a portfolio of solutions that help modernize date centres, integrate public clouds and empower digital workspaces.

It is partnering with companies around the world, including Telstra, M1, Vodafone, NTT, AT&T, Deutsche Telekom and most major telcos in Viet Nam to help them transform their journey across the digital value chain, including new connected ecosystems, new business models, new networks and new clouds.

Vmware solutions for transformation include Integrated OpenStack 4.0, VMware vRealize Network Insight and new vSAN offerings to reduce the cost and complexity of collecting, storing and processing data and support Internet of Things (IoT) initiatives.

At VForum, the company also announced its new vision of the cloud called edge computing, where the physical world meets the digital. It introduced the VMware Cloud Foundation, a simple, agile, and secure cloud infrastructure.

A new approach to cyber security, VMware Appdefense, was also introduced.

“Digital transformation is providing tangible results for businesses, and it is encouraging to see more organisations leveraging technology to push the boundaries of what’s possible, We have committed to equip organisations with the right tools to run, manage, connect and secure any application on any cloud to any device, enabling them to take full advantage of opportunities before them,” said Adrian Hia, general manager of Nascent Markets and Viet Nam VMware. 

MyVIB Social Keyboard makes debut
     
The Vietnam International Bank (VIB) on Wednesday launched its new application – MyVIB Social Keyboard – enabling customers to transfer money on social networks in just five minutes.

Accordingly, if customers who are having a conversation with someone on social networks such as Facebook Messenger, Viber, Zalo, Whatsapp, Twitter and Snapchat want to transfer money to the person, they can switch to “MyVIB Keyboard-MyVIB” mode. They can then transfer money without having to open any other application.

Developed by VIB and Fintech Weezi Digital Co, the new application will help customers save time required to transfer money when chatting because they do not need to exit the screen to log onto MyVIB – the bank’s internet banking. Both internal and external bank transfers will take place on the “MyVIB Social Keyboard” at the chat screen and avoid sending money to incorrect recipients.

For security purposes, each transfer request must be authenticated via the OTP code sent to the sender’s phone, VIB said it its statement.

“Today, more and more people prefer texting instead of making phone calls and online shopping is gradually replacing traditional shopping,” Tran Nhat Minh, VIB deputy general director said, expecting that the new application will bring customers who want to shop and transfer money via social networks exciting experiences of online banking services but also push up the development of non-cash payments in Viet Nam, he said. 

Group focuses on trust in VN food
     
The Association of Food Transparency (AFT) made its debut in HCM City on Wednesday with the aim of connecting responsible players in the food production chain for the benefit of society and the environment.

AFT will also work to raise prestige and protect and create a favourable environment for producers and traders who offer safe, healthy food with transparency standards with the aim of expanding market share for the products at home and abroad.

AFT will also work to protect the interests of consumers and public health, as well as improve food production industry by promoting safe and transparent products.

Nguyen Thi Hong Minh, chairwoman of the Advocacy Committee for the establishment of AFT, said AFT includes 59 individuals and organisations, including owners of farms, co-operatives, agricultural startups, manufacturers, retailers, raw materials suppliers, and service providers.

AFT members who are safe-food producers will be transparent in offering information to consumers, with the aim of ensuring people’s health and future generations, she said.

Enterprises participating in AFT must have certification related to product quality such as HACCP, GLOBAL GAP, VIETGAP, organic certification, food safety and hygiene certification.

All members must also commit to provide transparent information about their products, protect people and community health, maintain prestige and quality of Vietnamese food, protect and develop brands and not compromise the association’s common interests or legitimate interests of other members.

Minh said “unsafe food was still widespread in the market, affecting people’s health.”

The use of plant protection chemicals in farming, antibiotics in animal breeding and preservatives in foodstuff is still common, and authorised agencies appear unable to control it, she said.

Many people remain concerned about what is safe to eat and drink, she said.

Dr Vu Trong Khai, member of the Viet Nam Agricultural Alliance, said many companies had invested in producing safe food products, but consumers do not trust them because inspection and certification systems have problems.

If the association can recover consumer trust, it will be a great success, he said.

Minh said the agricultural sector would not develop in a sustainable manner if producers did not work together to meet basic standards, quality and brand development in line with socio-economic development and consumer demand.

Safe food producers need to collaborate to market their products to win consumer trust, she added.

Huynh Thi Kim Cuc, deputy head of the Food Safety Management Board of HCM City, praised the establishment of the AFT, which she encouraged to work with State management agencies to help restore consumer trust in locally-made products as well as help consumers realise which products are safe.

At the event, Minh was elected the chairwoman of the AFT. 

No more alcohol tax hikes, forum pleads
     
Taxes on alcohol and soft drinks should not be hiked again in the next few years since successive hikes in special consumption tax have had a strong impact on the market, a round table organised by the Viet Nam Beer, Alcohol and Beverage Association heard in HCM City on Wednesday.

Since 2013 the special consumption tax on alcoholic beverages and beer has been raised four times.

From next year it will be 65 per cent.

Speaking to Viet Nam News on the sidelines of the forum, Nguyen Van Viet, the association chairman, said the growth of the beverages market in the first eight months of this year was 7 per cent, the same level as previous years.

“The growth was mainly due to soft drinks, which have not been affected by the tax. Alcoholic drinks saw no growth while beer witnessed low and steady growth.”

The impact of the tax hikes would be clearer a year or two down the line and so the growth next year would not be higher than in 2017, he said.

Experts cited the example of Japan, which takes around 10 years to bring in a new policy, saying Viet Nam too should be consistency in policy making.

The tax on beer and spirits has been increased by 20 per cent in just five years, they lamented.

Trieu Quang Thin, vice chairman of the Ha Noi Association for Anti-counterfeiting and Trademark Protection, warned that as the huge tax hikes push up prices, consumption would decline and companies would look for ways to evade taxes.

Furthermore, it could give rise to smuggling and fake products, he said.

Shivam Misra of the EuroCham Wine and Spirits Sector Committee concurred with him, telling the forum the Government could actually lose revenues due to the tax hikes.

Higher taxes would give rise to illegal products, he explained.

But assuring they would not evade taxes, delegates called for a road map with taxes hiked at a slower rate so that companies have time to prepare and avoid shocks.

The beverages sector is one of the biggest in the country and accounts for 5 per cent of the Government’s revenues.

The sector has grown consistently for many years, and exports many products.

Farmers emulate high-quality Japanese fruit
     
Japanese netted melon, a nutritious fruit with a seductive flavour, has been successfully and profitably grown in Viet Nam thanks to the application of high-tech cultivation methods.

Recently, at the Ha Nam Hi-tech Agriculture Zone in northern Ha Nam Province, the Viet Nam National Seeds Joint Stock Company (Vinaseed) successfully planted the fruit.

“Ha Nam Hi-tech Park, with an area of 21.59 hectares, possesses one of the most modern cultivation infrastructures in the country. Using a specialised hot house with sun-proof roof, automatic irrigation, a water treatment system and processing and packing technology, the park is fully qualified to grow the specialty,” said Do Ba Vong, deputy director of Vinaseed, told Government portal chinhphu.vn.

Japanese netted melon is rich in vitamins A and C and contains anti-oxidants and elements that help fight osteoporosis and cancer, Vong said.

But he added that the fruit was hard to grow in the open as its skin cracked easily, enabling it be penetrated by bacteria and fungus. Fruit quality totally depends on temperature, light, humidity and irrigation, so it needs to be grown in modern hot houses using high technology.

Netted melons grown in Ha Nam Hi-Tech Park are round and weigh from 1.5 to 1.8kg each. They are crisp and sweet.

Vu Van Vuong, deputy director of Ha Nam High-tech Park claimed that the fruit grown at the park was the same quality as in Japan, but fetched only one-tenth of the prices of melons imported from Japan.

“Melons are being produced all year round, meeting the demands of the domestic market and others in Europe and the US,” Vuong said.

According to Tasima Hisashi from the Japan International Co-operation Agency (JICA) in HCM City, high-tech agriculture can help enterprises and co-operatives increase productivity by 30 per cent.

He said the core purpose of high-tech applications was to produce quality products in large quantities to make the highest profits.

Regarding the vegetable and fruits industry in general, the Minister of Agriculture and Rural Development, Nguyen Xuan Cuong, said that the industry had great development potential. In the Government’s agricultural restructure scheme, vegetables and fruit were identified as key agricultural products for export.

Currently, the global annual demand for fruit and vegetables is about US$650 billion, which indicates a great opportunity for Viet Nam.

The minister proposed the Government adopt policies to remove difficulties in land, credit and science technology to support enterprises expand and accelerate hi-tech applications for farming.

“In the future, our vegetable and fruit products will be growing fast. Besides applying high technology, we also need to focus on all stages from breeding, production to processing and market expansion,” Cuong said. 

Africa full of potential for Vietnamese firms
     
Africa is a market with high export demand and less strict requirements, giving it potential, according to the Ministry of Industry and Trade’s Department of Asia-Africa (the Middle East – Africa Zone).

Nguyen Minh Phuong from the department told a seminar to promote trade and exports to the Middle East and Africa, held in Ha Noi on Tuesday, that Viet Nam has so far established ties with 53 out of 55 African countries and two-way trade has surged considerably over the past decade.

Viet Nam’s exports to Africa soared from US$610 million in 2006 to $3.2 billion in 2015 and $2.8 billion in 2016.

Last year, Africa’s imports neared $480 billion, which is forecast to increase to about $1.2 trillion by 2020. In the Middle East, the figure was estimated at roughly $807 billion in 2016 and at $1.5 trillion by 2020.

Lying in a strategic geographical location, the Middle East borders Asia, Europe and Africa, with Dubai being the world’s third largest transit market, Phuong said.

South African Ambassador to Viet Nam, Kgomotso Ruth Magau, said Africa imports made-in-Viet Nam goods such as rice, coffee, pepper, cashew nuts, footwear, apparel, household electric appliances, plastics, electronics, handicrafts and aquatic products.

The event affords both sides a chance to facilitate information sharing and technological transfer, she said.

Ly Quoc Thinh from the Department of Asia-Africa Market said the Middle East is home to 15 countries, huge oil reserves and mineral resources. Due to poor weather conditions, the Middle East’s agriculture, fisheries and consumer goods production is underdeveloped so the region must rely on imports.

However, Vietnamese exporters still face obstacles regarding competition with regional rivals, financial risks, public security and order, red tape and poor transport links.

Experts suggested reviewing business strategies and thoroughly learning about regional socio-culture before doing business in the region. 

Adamed Group signs largest Polish direct investment in Vietnam

Adamed Group spent $50 million on acquiring a controlling stake in Davipharm Co., Ltd., Vietnam’s fastest-growing pharmaceutical, marking the largest direct Polish investment in Vietnam to date.

According to information published on Adamed Group’s website, the purchase agreement was officially signed by Adamed general director Małgorzata Adamkiewicz and Pham Tai Truong,founder of Davipharm, on November 28 in Hanoi, in the presence of the presidents of both countries—Andrzej Duda and Tran Dai Quang—during the official visit of the Polish President, accompanied by a business mission organised by the Ministry of Economic Development and the Polish Investment and Trade Agency.

The deal provides an extensive investment plan, including the transfer of Adamed’s knowledge and expertise.

“Davipharm manufactures a wide range of medicinal products for both the Vietnamese and neighbouring markets. In view of the scale of this transaction and further investments into the development of the company, we consider our investment to be a launching pad for the further dynamic expansion of Adamed Group in the Asia-Pacific region,” said Adamkiewicz.

Regarding Davipharm, Truong stated that Adamed Group’s investment is an opportunity for continued dynamic development. Co-operation with such an experienced partner will enable Davipharm to reinforce their position in the local market and to expand in the Asia-Pacific region.

Established in 2004 in Binh Duong province, Davipharm manufactures 300 medicinal products in most therapeutic classes. It is considered the fastest-growing company in the Vietnamese pharmaceutical market. It exports its products to the Philippines, Cambodia, and Myanmar.

Adamed, which was founded in 1986, specialises in providing patients with medical goods which are used to treat chronic modern-age diseases in a number of therapeutic areas, namely allergology and pulmonology, angiology, diabetology, and urology, among others.

Adamed began exporting its products in December 2003. To date, Adamed products are currently available in 60 markets around the world.

The investment in Vietnam forms part of the internationalisation of the company. In 2016, it recorded a 15 per cent increase in export revenue.

Vietnam-China int’l tourism fair opens in Mong Cai city

The 2017 Vietnam-China International Tourism Fair opened in Mong Cai city of Vietnam’s northern Quang Ninh province on December 1.

The fair features more than 450 booths, including more than 300 from Vietnamese businesses, 122 from Chinese firms, and 16 from Thai companies.

The fair is divided into five sections which introduce the socio-economic achievements of Mong Cai city, other localities and businesses of Vietnam and China. They also display tourism products and services of the two countries, goods produced under the One Village – One Product programme in Quang Ninh, and a wide range of other products.

An investment, trade and tourism promotion conference, a workshop on fruit export via Mong Cai and Dongxing border gates, and cultural and sports exchanges will also take place during the fair.

The Vietnam-China International Tourism Fair is held annually on a rotational basis between Mong Cai city and Dongxing city of China’s Guangxi province. This year’s event, the 12th edition, will last through December 7.

Online payment shows strong growth ahead of Online Friday

As this year’s Vietnam Online Friday sale approaches (December 1, with events to December 3), even more Vietnamese are expected to go online to make the most of the special deals during December.

Vietnamese Visa cardholders made 81 per cent more e-commerce transactions in the year-ended September than the year prior, according to the latest figures from Visa. Visa cardholders also spent 42 per cent more on e-commerce purchases over the same period.

In Vietnam, e-commerce is becoming more popular and a part of everyday life, as more people are shopping online. When it comes to paying for their online purchases, Visa credit card transactions grew by 86 per cent, while Visa debit card transactions increased even more at 105 per cent.

The top purchasing categories were airline tickets and travel packages, followed by transportation, fashion, and telecommunications. Transactions at Vietnamese websites were up 135 per cent while transactions at international websites grew 61 per cent. The average transaction size was around $42.

“We are pleased to see this strong e-commerce growth because it reflects that Vietnamese are becoming comfortable with making online purchases both at local and international online stores,” said Mr. Sean Preston, Visa Country Manager for Vietnam, Cambodia and Laos.

“We commend the government on driving the Online Friday initiative – the event organized by the Vietnam E-commerce and Information Technology Agency at the Ministry of Industry and Trade, to promote digital experience and e-commerce in Vietnam,” he added. “Visa is proud to be supporting this initiative and will be showcasing new payment technologies such as contactless, mobile, and QR payments, as part of the Online Friday 2017 event. We believe initiatives such as these will help Vietnam to reach the government’s target of transitioning the country towards a cashless society by 2020.”

Though online shopping provides a sense of convenience for everyone, the recent Visa Consumer Payment Attitudes Study reported that respondents’ online shopping behavior was highly influenced by social media, as 73 per cent of them read reviews, comments, and feedback before they shop.

The report also said that to offer better online shopping experience, 76 per cent of respondents shop at their favorite online retailer for the ease of check out factor, and 53 per cent because of the ability to compare prices.

“At Visa, we want our cardholders to shop online with confidence, knowing we have multiple layers of security to protect their transactions so they can enjoy the convenience, wide acceptance, and competitive prices available online,” Mr. Preston said. “As we head into December and the holiday shopping season, we want more Vietnamese consumers to be able to take advantage of the great deals available online.”