At a meeting with Mr Guillaume Chene, Director General of the Makro Group in Prague on March 29, Vietnamese Ambassador to the Czech Republic Truong Manh Son asked the group to help promote Vietnamese goods in Czech. 

Chene said he believed in the expansion of Vietnamese goods in the Czech Republic and other European countries.

Vietnamese goods have great potential to enter the Czech market because the market trend is changing all the time. We want to boost cooperation with Vietnamese partners. In the next two months, we will introduce more than 450 types of Vietnamese goods in our market, he said.

Egg farmers, producers cry foul over new import quotas

New regulations increasing the import quota on eggs coming into Vietnam has ruffled the feathers of farmers and producers, who say the limits will only add to the problems of an already oversupplied market.

Egg producers say the new specialty quota program by the Ministry of Industry and Trade – set to begin this coming April – bumping up the annual quota to 600,000 eggs will likely force many companies out of business. 

The price of one egg is already at an all-time low of US$.04 (VND1,000) Nguyen Van Trong, deputy head of the Livestock Production Department, told reporters in Hanoi recently.

Mr Trong was adamant that the increased quota is bound to drive the price down even further and that limits should be revised upwards to protect those in the egg production segment of the economy.

However, other industry experts point out that Mr Trong’s arguments aren’t necessarily sound.

First, they contend, the price of eggs is already so low that there is little economic incentive for exporters from other large egg producing countries to ship eggs of any type into Vietnam.

Second, they assert that over the past year the actual number of eggs that has been imported into the country has been totally inconsequential. They say that all the squawking by alarmists like Mr Trong is much ado about nothing.

They also note, that consumer demand for eggs, just like that for any commodity, is seasonal and egg prices are currently down because demand is relatively low and the market is suffering from an oversupply.

The peak season for eggs is in June, July and August and historically market prices have trended upwards during those months.

In addition, they note that Vietnam has generally been a net exporter of eggs as evidenced by the Vinh Nghiep Company in the province of Vinh Long who has shipped some 30 million salted duck eggs to other countries.

Singapore is one of the largest overseas markets for not only duck eggs from the company but eggs from all types of poultry, they add.

Phan Van Chinh, head of the Ministry of Industry and Trade Export Import Department is one of the experts that doesn’t think the increased quota is anything for farmers and egg producers to get upset over.

Mr Chinh explained that the increased egg quotas are in line with the country’s World Trade Organization commitments to open the commodity markets for farm produce and affect eggs, salt, sugar and tobacco.

Those commitments started in 2007, and in general, call for annual increases of roughly 5% per year, he added.

The egg production segment is under no threat from foreign egg producers, Mr Chinh asserted, adding that if there is an oversupply putting downward pressure on prices then domestic producers should scale back production.

The markets should be left to let natural forces achieve an equilibrium of price, supply and demand.

The egg production segment, he suggested, should look to reinvent the egg and cultivate niche markets such as the organic market if they seek to boost sales and earnings instead of constantly complaining and seeking protectionist measures.

In short, they need to learn how to compete in the new open market economy and start studying the demographics, trends in consumer demand and create innovative new marketing methods to reach both domestic and foreign consumers, Mr Chinh noted.

Other industry experts point to the fact that the global kosher egg market has largely been ignored by the Vietnamese domestic egg production segment.  It’s also a very lucrative market that has a tremendous sunny upside to it, they concluded.

Khanh Hoa to build coastal solar plant
     
The Central Power Corporation (CPC) under the Viet Nam Electricity Group (EVN) will build a solar plant project with a capacity of 50 megawatts (MW) and solar farms in the south-central coastal province of Khanh Hoa.

CPC’s deputy general director, Nguyen Thanh, told Viet Nam News on Thursday that the plant will be located on 70ha in five rural communes of Cam Lam District and Cam Ranh City, 40km south of the city of Nha Trang.

He said the company has been awarded an investment certificate by the provincial People’s Committee, and a feasibility study would begin in late 2017. As scheduled, the plant will supply renewable energy for rural areas and the national grid from 2019.

Thành said the corporation and EVN have been negotiating with the Asia Development Bank (ADB) in seeking preferential loans for the project. The Da Nang-based corporation also plans to co-operate with Japanese Mitsubishi in production of battery-powered cars.

According to a survey, Khanh Hoa has great potential for solar energy with solar radiation of 5.4Kwh per square metre each day, and over 2,600 sunshine hours a year.

The province said 10 investors have registered to develop solar power projects in Khánh Hòa, with a total capacity of 2,000MW.

In 2014, Viet Nam’s first solar power project with a 19.2MW-capacity was built in the central province of Quang Ngai. 

HCM City’s CPI falls 0.09 percent in March

The consumer price index (CPI) of Ho Chi Minh City in March fell 0.09 percent from the previous month, but rose 5.6 percent compared to the same period last year, reported the municipal Statistics Office on March 30.

According to the office, the prices of three out of 11 goods groups saw a month-on-month decline, with the largest fall of 1.13 percent seen in food and catering services.

The prices of foodstuff reduced by 1.61 percent, while that of restaurant services decreased by 0.63 percent and food by 0.03 percent.

A drop of 0.07 percent was also recorded in the prices of culture, entertainment and tourism services, while the prices of goods and other services fell by 0.01 percent.

An official of the Ho Chi Minh City Statistics Office said that in March, goods groups with rising prices include transport (up 0.47 percent); housing, electricity, water, fuel and construction materials (up 0.93 percent). 

At the same time, the prices of drinks and cigarette went up 0.13 percent, while that of garments, hats and footwear upped 0.08 percent; equipment, household and appliance climbed up 0.2 percent; and medicine and healthcare services rose 0.04 percent.

In March, gold price declined 0.73 percent, while that of US dollar dropped 0.05 percent month-on-month.

Fishing output gains 1.4 percent in Q1

The Ministry of Agriculture and Rural Development has estimated fishing output reached about 651,900 tonnes in the first quarter of 2017, 1.4 percent more than the previous year.

Favourable weather conditions together with abundant marine stocks of shrimp, mackerel, anchovy and decapterus along the central and southern coasts have led to increased fishing activity during the period, the ministry said.

In addition, provincial authorities across the country have tightened control on destructive fishing practices, notably bottom trawling and the use of explosives and toxic chemicals, while implementing measures to support offshore fishing. 

The central coastal provinces of Phu Yen, Binh Dinh and Khanh Hoa – the country’s main producers of tuna – brought ashore approximately 5,850 tonnes of tuna in the first three months this year. Binh Dinh alone caught 3,466 tonnes of tuna, up 75 percent year on year. 

Meanwhile, aquaculture harvest was estimated at around 570,000 tonnes, a year on year increase of 2.7 percent during the first quarter. 

The figure included about 247,600 tonnes of Tra fish, up 1.5 percent year on year. However, tra supply remains scarce, pushing prices up.

Tra fish is currently sold at 25,000 – 26,000 VND per kilo.

Meanwhile, brackish shrimp output from 535,600 hectares of aquaculture farms reached 68,300 tonnes in the first quarter, up 1.7 percent in farming area and 14.14 percent in output.

Binh Duong lures big FDI projects in textile, infrastructure

Foreign investors have poured a large amount of investment into textile and infrastructure in the southern province of Binh Duong since the beginning of this year. 

Polytex Far Eastern Co., Ltd from Taiwan (China) added 485,8 million USD  to its project in the Bau Bang Industrial Park (IP), lifting total registered capital of the project to 760 million USD. 

Polytex Far Eastern began its operation in the Vietnam-Singapore Industrial Park I (VSIP I) in the province since 2007. In its development strategy, Vietnam-based company will be the third largest branch of the Chinese firm. 

Meanwhile, the Vietnam-Singapore joint venture company invested 284.7 million USD in developing infrastructure of the VSIP III.

Another project was invested by the Kolon Industries Co., Ltd of the Republic of Korea in the Bau Bang IP, with a total registered capital of 220 million USD. As part of the 1-billion-USD project signed between Kolon and the provincial authorities, the project specialises in manufacturing automobile tires cord and airbags. 

As of March 15, Binh Duong granted investment licences to 43 foreign direct investment (FDI) projects with a total registered capital of 739.3 million USD, a year-on-year increase of 204 percent.  Whilst, 18 existing projects registered to increase capital by 550 million USD, up 364 percent against the same period last year. 

According to the Foreign Investment Agency under the Ministry of Planning and Investment, Binh Duong ranked second in luring FDI in the first quarter of this year after the northern province of Bac Ninh. 

It was home to three out of seven projects having total investment capital of over 200 million USD in the country.

Binh Duong has set a target of attracting at least 1.4 billion USD in FDI in 2017, prioritising projects with high technology and large-scale ones on urban and services development.

In 2016, Binh Duong saw over 2 billion USD being poured in 240 new projects and 123 existing ones, equivalent to 145 percent of its target. Most new projects were in the fields of manufacturing and processing industries and services.

Thanh Cong, Hyundai Motor join hands to produce automobiles

Thanh Cong Group on March 30 signed a cooperation agreement with the Republic of Korea’s Hyundai Motor Company on forming a venture to expand the assembling of automobiles in Vietnam.

Le Ngoc Duc, Director General of Hyundai Thanh Cong company under Thanh Cong Group, said Hyundai Motor decided to choose Thanh Cong as its partner in the region based on the group’s achievements in the past years.

The venture is also part of Hyundai Motor’s strategy in expanding its global production base, with ASEAN as a potential market.

It is noteworthy that the decision is made at a time when the deadline is approaching (2018) for the reduction of import tariffs on completely-built-units (CPU) from ASEAN countries to zero, under the ASEAN Trade in Goods Agreement (ATIGA).

According to Duc, this is a chance for Thanh Cong Group to develop the local support industry, a move in line with the development strategy for the auto industry approved by the Government.

In the initial phase, the Hyundai – Thanh Cong Joint Venture will maintain the current factory with a capacity of 40,000 vehicles per year in Ninh Binh province and invest in expanding it in the near future, using up-to-date technologies of Huyndai group. 

With the joint venture, the rate of completely knocked down (CKD) vehicles among Hyundai products available in Vietnam will be raised from 20 percent to 80 percent in the latter half of 2017 and 90 percent in 2018. 

Hyundai Thanh Cong also aims for a localisation rate of 40 percent to be eligible for the zero percent tariff rate when exporting its vehicles to other ASEAN countries.

Jetstar Pacific launches Hai Phong-Quang Binh route

Travel from the northern port city of Hai Phong and Dong Hoi in central Quang Binh province will become much easier when the low-cost carrier Jetstar Pacfic launch its flight on the route from April 29. 

Accordingly, three round-trip flights will be operated a week on Tuesday, Thursday and Saturday with flight duration of one hour, using 180-seat Airbus A320 aircraft, the carrier announced on March 30.

The flight from Hai Phong will depart at 17:35 and the return leg at 19:10.

In celebration of the new route, the airline is offering promotional fares priced from only 40,000 VND (1.76 USD). The promotion is applicable from 11:00-24:00 on March 30.

The tickets are available on www.jetstar.com for flights between September 11 and October 29, 2017.

The opening of Hai Phong-Dong Hoi air route is part of a tourism development cooperation programme between Jetstar Pacific, Hai Phong city and Quang Binh province. It is also part of the dual-brand strategy between the carrier and Vietnam Airlines to enlarge the flight network, meeting demands from customers and stimulating tourism growth.

Quang Binh province is home to a line-up of stunning landscapes, which have drawn increasing attraction from both domestic and foreign holiday-makers. Meanwhile, Hai Phong is one of the significant economic centres in the north with huge potentials for tourism development.

On the occasion, cheap tickets on domestic and international routes are provided from 88,000 VND (3.86 USD) to 348,000 VND (15.28 USD), depending on different routes.

The Hai Phong-Dong Hoi route is the 40th of Jetstar Pacific’s flight network, which is linked with the network operated by Jetstar Group connecting 80 destinations in 17 countries in the Asia-Pacific region. 

Jetstar Pacific is a member of the Jetstar Group. It has two major shareholders: Vietnam Airlines and Qantas of Australia.

Saigontourist to offer huge discounts at int’l travel expo

Saigontourist Travel Service Company has announced that it will offer discounts of up to nearly US$230,000 for visitors at the Vietnam International Travel Mart – VITM 2017 scheduled for April 6-9 at the International Exhibition Centre in Hanoi.

This is the fifth time the company has participated in the event. Saigontourist plans to offer US$272 in discount for each tourist booking inbound and outbound tours along with vouchers for huge discounts on services at luxury resorts.

Visitors to the pavilion of Saigontourist will also have a chance to win a free Da Nang-Bay Mau Coconut Forest Tour valued at about US$210 with and get discount vouchers on air ticket bookings and car rentals.

US, Vietnam to focus on digital trade, industrial goods

The expansion of commercial trade was at the top of the agenda at talks held under the US-Vietnam Trade and Investment Framework Agreement that concluded today (Mar.30) in Hanoi.

A press release from the Office of the US Trade Representative states that the US also used the TIFA talks, the first between the two countries since 2011, to reaffirm the commitment of the Trump administration to the proliferation of economic ties throughout the Asia-Pacific region, including Vietnam. 

According to USTR, the two sides agreed to launch working groups to resolve issues on agricultural and food safety, industrial goods, intellectual property matters, and digital trade.

Problems USTR identified in these areas in its most recent trade barriers report include the ‘broad scope and uneven enforcement’ of a comprehensive food safety law that Vietnam issued in 2012.

That law includes a requirement for phytosanitary certificates for many pre-packaged, consumer-oriented, or highly processed foods of plant origin for which such certificates are not normally issued or required.

The talks also addressed issues related to Internet-based copyright piracy and the increasing sale of counterfeit goods online and in physical markets in Vietnam as well as discussions related to ambiguity in the Vietnam 2015 law on network information safety among other topics.

In addition, the meeting reviewed the status of the Vietnam government giving effect to the World Trade Organization Trade Facilitation Agreement and its participation in the extended WTO Information Technology Agreement.

Trade representatives of both sides expressed interest in pursuing fresh bilateral trade negotiations, but it remains unclear if and when those negotiations might begin. Officials agreed to continue their talks at later dates. 

HCM City may tax online sales in April

Ho Chi Minh City’s tax department has said it will work with related departments to impose sales taxes on businesses running on Facebook and other online shopping sites.

The department would submit the taxing plan to the city’s government for approval early next month, an unnamed official from the department told VnExpress.

The department said it would coordinate with information and trade departments, internet providers, banks and post offices to collect the tax.

Last month, the trade department proposed the city work with Facebook on measures to collect tax from businesses running on the site.

The General Department of Taxation later agreed with the proposal, saying it is working on measures to tax the businesses operating on Facebook, YouTube and Vietnamese messaging app Zalo.

Tightening tax collection from online businesses is part of a plan to enhance state budget revenue collection.

The city’s intent on taxing online sales has stirred up different opinions.

Many said the tax collection is not an easy job for the authorities as many online retailers use anonymous accounts for transactions, not to mention that most purchase or sales transaction are cash-based.

Vietnam’s e-commerce market, which has one of the world’s fastest growth rates, jumped 37% to around US$4 billion in 2015, data from the Ministry of Industry and Trade show.

The growth rate is about 2.5 times faster than that in Japan, according to Tran Duc Tam, an industry expert.

The government has projected revenue by Vietnam’s online retail to hit US$10 billion by 2020, accounting for 5% of the country’s retail market.

Retail sales in the first quarter of 2017 rose an estimated 9.2% from a year ago to US$40.5 billion, the government said on March 29, after an annual rise of 10.2% last year to US$118 billion.

Up to 60% Vietnam’s population is online. 

Aeon Mall Vietnam to build shopping mall in Hai Phong

Aeon Mall Vietnam has met with leaders in northern Hai Phong city to promote the construction of a shopping center on a total area of 9.5 ha.

Mr. Iwamura Yasutsugu, General Director of Aeon Mall Vietnam, expressed his appreciation of the city’s development. “Hai Phong is one the most dynamic cities of the region and has major potential,” he said.

“Our company has successfully invested in the Aeon shopping center project in Long Bien district, Hanoi, and is now implementing another project in Ha Dong district,” he added. “Aeon has selected Hai Phong under its development and expansion strategy.”

However, he also explained that Aeon needs a large area of about 9.5 ha with high traffic connectivity. It would therefore like Hai Phong leaders to create favorable conditions, introduce an appropriate location, and work closely to bring the project to life as soon as possible.

Replying to Mr. Yasutsugu’s comments, Mr. Le Van Thanh, Secretary of the Hai Phong Party Committee and President of the City People’s Committee, welcomed the Aeon Mall Vietnam project and shared its expectations.

“We will create the most favorable conditions possible, including in location and administrative procedures, to begin and complete the project in the shortest time,” he said.

Mr. Thanh also noted that Aeon should pay attention to the potential of Hai Phong and build a suitably-sized shopping mall.

Hai Phong has been investing in building a modern infrastructure network that is thoroughly connected to all forms of transport. 

Many major economic groups have come to the city to invest in modern urban areas, tourism resorts, high-class entertainment areas, and five-star hotels. In the future, the development of trade, tourism and services, and port services will be a strength of the city.

TPG buys majority stake in Vietnam Australia International School

Global alternative asset firm TPG has entered into definitive agreements with shareholders of the Vietnam Australia International School (VAS) to acquire a majority holding, according to a statement from VAS.

As part of the transaction, two private equity funds, Mekong Enterprise Fund II and MAJ Invest, will fully divest their holdings in VAS. Founder Mr. Pham Tan Nghia will continue as a shareholder after the TPG investment wraps up.

“VAS is a business that is uniquely adapted to the Vietnamese market,” said Mr. Dominic Picone, Managing Director of TPG Asia. 

“Its innovative educational model responds to the needs and preferences of the expanding middle class, and it has a strong brand with great potential for growth. VAS is a good example of the type of creative investment opportunities we look for in Southeast Asia, and we believe the business will thrive in partnership with TPG.”

Leveraging TPG’s expertise in Asia and in the education sector, VAS will continue to expand its campuses, improve the quality of its programs, and further develop its staff to remain the market leader in the bilingual K-12 education segment in Vietnam.

“In the next three to five years, with the support of TPG, we will invest in the development and training of our staff, further improvements in the quality of our services, teaching-learning activities, and facilities,” said Mr. Marcel van Miert, Executive Chairman of VAS. 

“Regarding expansion plans, VAS intends to open many more large-scale campuses in Ho Chi Minh City and elsewhere. I am honored to continue to accompany VAS’s staff and teachers, who will implement the plan.”

TPG is a leading global alternative asset firm with more than $74 billion in assets under management. TPG Capital Asia is the dedicated Asia platform for TPG, with investment professionals in Beijing, Hong Kong, Melbourne, Mumbai, Seoul, and Singapore managing more than $6 billion in assets.

As one of the first private equity firms to invest in Asia, some of TPG Capital Asia’s past and current investments include 8990 Holdings, Cushman & Wakefield, Healthscope, HCP Packaging, Janalakshmi Financial Services, Lenovo, Myer, PropertyGuru, Union Bank of Colombo, and Wharf T&T. Across platforms, TPG’s past and current investments in Vietnam include Proconco, Masan Group and FPT Corporation.

VAS has more than 6,300 students in seven campuses in Ho Chi Minh City. This represents a significant increase from the 2004 school year when it had 400 students. It is now the largest private K-12 education group in Vietnam.

 The school system’s growth has thrived since it introduced the Cambridge International Curriculum, which has led to an increase from 4,100 students in 2014 to 6,300 in 2017.

With investments in new buildings and facilities such as the newly-opened Garden Hills campus and planned campuses in Ho Chi Minh City and Hanoi, the school is providing more educational opportunities to students throughout Vietnam.

Investors express interest in KIDO Frozen Food

A Malaysian fund plans to spend $200 million on acquiring all shares in the KIDO Frozen Food JSC (KDF) under the KIDO Group Corporation (KDC), after the group announced the sale of 35 per cent of shares earlier this month.

A Japanese company also expressed an intention to buy the 35 per cent stake in KDF at a much higher price than the expected listing price of VND52,000 ($2.3) per share.

KDC’s Deputy Chairman and CEO Tran Le Nguyen told a conference introducing investment opportunities in KDF that 1.2 million shares, or 20 per cent, will be offered in April at a starting price of VND52,000 ($2.3) per share. The company will then offer the remaining 15 per cent to internal partners and shareholders.

Individual investors and domestic and foreign investors are permitted to purchase the shares. The number of shares available to individuals is a minimum of 3,000 shares and a maximum of 100,000, while for organization it is 10,000 and 500,000, respectively. Registrations are being taken from March 31 to April 12.

The shares are scheduled to trade on the Unlisted Public Company (UPCoM) market at the end of April.

The frozen food business brought substantial profits to KIDO last year. According to a report from the Ho Chi Minh Securities Corporation (HSC), its net revenue in 2016 reached VND1.4 trillion ($61.6 million), up 3.48 per cent against 2015. After-tax profit was VND139 billion ($6.1 million), up 80 per cent and accounting for 63 per cent of KDC’s profit. 

Profit is expected to increase in the years to come when KDC’s frozen food facility in northern Bac Ninh province comes into operation. Construction began on November 8 with initial capital of VND400 billion ($18 million), on 25,000 sq m, making it the largest of its kind in Vietnam’s north.

KDC now owns a frozen product distribution network with over 60,000 points of sale throughout the country. According to data from market researcher Euromonitor, it held 25.5 per cent of the ice cream market share in 2010 and 36.4 per cent in 2014.
Its net revenue stood at VND2.2 trillion ($96.8 million) last year, down 28.7 per cent against 2015. Gross profit was VND880 billion ($38.72 million), thanks to consolidating the profits of the Tuong An Vegetable Oil Company (TAC).

Q1 2.81% credit growth highest in six years

Credit growth of 2.81 per cent during the first quarter of 2017 was a six-year high, figures from the General Statistics Office reveal.
As at March 20, credit growth had surpassed capital mobilization growth. According to the GSO, the ability of enterprises to absorb capital has been relatively good and interest income for banks has improved.
The mobilization interest rate has been relatively stable, at 0.8 to 1 per cent per annum for demand and one-month term deposits and 6.4 to 7.2 per cent per annum for terms of more than 12 months.
Common lending rates for priority sectors stood at around 6 to 7 per cent per annum, while the short-term lending rate was 6.8 to 9 per cent per annum for common manufacturing sectors and 9.3 to 11 per cent for mid- and long-term loans. For customers with transparent financial performance, short-term lending rates are 4 to 5 per cent per annum.
A number of commercial banks have recently raised their deposit rates, with the long-term rate for individual customers via the issue of certificates of deposit to be as high as 9.2 per cent per annum. The State Bank of Vietnam believes these adjustments are perfectly normal and that liquidity in the banking system at the moment remains healthy.
A GSO survey showed that 33.7 per cent of enterprises in the industrial sector viewed their business performance in the first quarter as being better than in the previous quarter, while half expected their business performances to be better during the second quarter.
Only 34.5 per cent of respondents met financial difficulties during the January-March period, while 27 per cent claimed that the lending interest rate was still high.
Vietnam’s economy expanded less than anticipated in the first quarter as trade data indicated export growth slowed more than expected in March.
GDP grew 5.1 per cent in the first three months of 2017, markedly short of the median estimate from economists surveyed by Bloomberg, who predicted year-on-year growth of 6.25 per cent.
Growth was the slowest since the first quarter of 2014 and well short of the 6.21 per cent recorded for 2016 as a whole. The Asian Development Bank has forecast Vietnam’s GDP to rise 6.3 per cent in 2017.
New inflation data also points to softer price growth, with the country’s CPI registering a rise of 4.65 per cent in March, down from 5.02 per cent in February and less than the median forecast of 6.25 per cent.
Vietnam is targeting credit growth in 2017 to expand at the same rate as last year, at 18 per cent, while money supply this year is targeted to grow 16 to 18 per cent against the end of 2016.

HSBC launches e-customs payments

HSBC Vietnam has signed a cooperative agreement with Vietnam Customs to launch e-customs payments, which will provide HSBC customers with a more convenient customs payment process online.
Upon registering for the service, HSBC customers will be able to use the bank’s electronic banking channels to pay taxes, fees and charges to customs offices. Customers will also benefit from a reduction in payment errors and can expect faster customs clearance on goods and better operational efficiency when importing goods into Vietnam.
The cooperation with Vietnam Customs also allows HSBC to retrieve electronic information on customs declarations directly from the e-customs gateway. HSBC customers no longer have to provide forms for customs declarations when making payments.
The initiative is in line with the direction issued previously by the Ministry of Finance calling for greater cooperation between banks and Vietnam Customs to enhance administrative formalities, quicken the customs clearance process, bring convenience to customers, and modernize the collection of State budget funds.
“At HSBC, developing payment solutions on digital platforms has been one of our key focuses in recent years to offer our customers greater convenience,” said Ms. Nguyen Thi My Hanh, Head of Global Liquidity and Cash Management. “This cooperation with Vietnam Customs is the latest step on this journey, one that is further contributing to Vietnam’s digital transformation.”
“Each digital solution that we introduce not only saves time for HSBC customers, so they can focus on their business, but also contributes to Vietnam’s financial development, enhancing the country’s competitive edge by moving away from cash payments, as we have been urged to do by the State Bank of Vietnam.”
HSBC also partnered with the General Department of Taxation to launch an online tax payment platform, in December 2015, becoming one of the first foreign banks to apply an extended “cut off time” for Online Tax Payments, to 8pm, providing more time for customers to meet their tax obligations.
The move is in also line with an earlier comment from the CEO of HSBC Vietnam Mr. Pham Hong Hai, who told VET that the bank will continue to digitalize to further streamline processes, deliver automation to corporate clients, and enhance their digital channels to increase customer engagement in the retail business.
The bank will also continue to leverage its international network to support clients’ business, specifically focusing on business corridors with leading foreign-invested enterprises in Vietnam and industry leaders, providing them with a one-stop solution while growing its retail portfolio.
HSBC Holdings, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 4,000 offices in 70 countries and territories in Europe, Asia, North and Latin America, the Middle East, and North Africa. With assets of $2.375 trillion at December 31, 2016, HSBC is one of the world’s largest banking and financial services organizations.
HSBC has been in Vietnam for more than 140 years, opening an office in Ho Chi Minh City in 1870. It was the first foreign bank to launch a locally-incorporated entity, on January 1, 2009. Its current network includes two branches and five transaction offices in Ho Chi Minh City, one branch and four transaction offices in Hanoi, and three full service branches in Binh Duong, Can Tho, and Da Nang. HSBC is one of the largest foreign banks in the country in terms of investment capital, network, product range, staff, and customer base.

Novaland acquires majority ownership of Harbor City project

The Board of Management at the Nova Real Estate Corporation (Novaland, HSX stock code NVL) has recently approved the corporation’s purchase of 34.34 million common shares of the Phu Dinh Port Joint Stock Company, worth VND343.4 billion ($15.08 million) and representing 34.34 per cent of charter capital.
The purchase will increase Novaland’s holding in Phu Dinh Port to 59.73 million shares, or 59.73 per cent of charter capital. It currently holds 27.91 per cent.
Phu Dinh Port JSC, formerly known as the Ho Chi Minh City River Port Company, is an enterprise directly under the Saigon Transportation Engineering Corporation One-Member Limited Liability Company (SAMCO) and owns the Harbor City project in Ho Chi Minh City’s District 8. The project has a total area of 60 ha, of which the building area is nearly 640,000 sq m and includes 3,240 villas. It is expected to open in the fourth quarter of this year.
Harbor City has been built on land at Phu Dinh Port. At the beginning of this year the company increased its charter capital from VND330 billion ($14.5 million) to VND1 trillion ($43.9 million).
Novaland is one of the leading real estate developers in the south of Vietnam in the mid-end segment. Its 600 million shares were listed on HSX on November 28, 2016 and is behind only Vingroup in terms of total asset size, market capitalization, sales, and profit. The company currently owns more than 40 major projects, primarily in Ho Chi Minh City, totaling nearly 10 million sq m.

SCIC Investment looks to sell nearly 900,000 FPT shares

The SCIC Investment One-Member Limited Liability Company (SCIC Investment) has announced an intention to sell shares in the FPT Corporation.
It has registered to sell 875,663 of its total of 1,675,663 FPT shares, or a 0.36 per cent holding. The transaction is expected to be executed by order matching and agreement matching from March 29 to April 27.
If the transaction is successful, SCIC Investment will retain 800,000 FPT shares, or 0.17 per cent.
FPT’s share price has rebounded after a few days of decline and now trade at around VND48,000 ($2.1). At this price, SCIC Investment will receive about VND42 billion ($1.85 million).
SCIC Investment has previously announced sales of FPT shares has not met its target. Last October it registered to sell 1 million FPT shares but failed to do so due to price fluctuations.
In early November, instead of selling, SCIC Investment registered to buy an additional 500,000 FPT shares but this move also failed. Since then it has only focused on purchasing FPT shares, not selling them.
FPT is the leading IT company in Vietnam and was the first internet service provider (ISP) and internet content provider (ICP) in the country. Its shares were listed on December 13, 2006 on the Ho Chi Minh City Stock Exchange (HSX).
SCIC Investment is a member company of the State Capital Investment Corporation (SCIC). SCIC is a State-owned enterprise that acts as the representative of State capital in enterprises and invests in important sectors in order to strengthen the leading role of the State, based on market principles. Officially launched in August 2006, SCIC manages a portfolio of businesses operating in various sectors, such as financial services, energy, industry, telecommunications, construction, transportation, consumer goods, healthcare, and information technology.

Hotel Nikko Hai Phong signs management deal

Festive fare at Hotel Nikko HanoiThe Okura Nikko Hotel Management Co. has announced that it has signed an agreement with Chuo Vietnam Co., a subsidiary of the Chuo Limited Liability Company, owned by Daiwa House Industry Co., and the Fujita Corporation to manage the Hotel Nikko Hai Phong when it opens its doors in northern Hai Phong city in 2020.
The 269-room hotel will be operated by Nikko Hotels International (NHI).
Hotel Nikko Hai Phong is located within Waterfront City, a coastal district currently under development. Rooms will average 35 sq m and guests have a choice of traditional Japanese dining, all-day dining, and bars.
CEO of Okura Nikko Hotel Management, Mr. Marcel P. van Aelst, said that Hai Phong boasts transport infrastructure, including motorways and an international airport.
“The city is attracting numerous Japanese multinational corporations, which is expected to create strong demand for accommodation in the Hai Phong area,” he added. “NHI looks forward to offering sophisticated hospitality services and exceptionally comfortable hotel experiences for visitors to Hai Phong.”
Hotel Nikko Hai Phong will be Okura Nikko Hotel Management’s fourth hotel in Vietnam, joining Hotel Nikko Hanoi (1998), Hotel Nikko Saigon (2011), and the soon-to-be-opened The Okura Prestige Saigon (2020).
Aiming to operate 100 hotels worldwide by 2020, Okura Nikko Hotel Management is focusing on developing properties in the fast-growing Asian region.
Investment in Vietnam is closely aligned with its strategy to optimize hotel management efficiency and increase brand recognition by venturing into countries with strong economic growth.
Okura Nikko Hotel Management, a subsidiary of Hotel Okura, operates 74 properties, including 49 in Japan and 25 elsewhere with nearly 23,000 guest rooms in three hotel groups: Okura Hotels & Resorts, Nikko Hotels International, and Hotel JAL City.
Hai Phong, which is some 100 km east of Hanoi, is one of Vietnam’s most developed coastal cities.
Registered FDI stood at $14.6 billion in 563 projects as at February 20, 2017, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI). There are 130 Japanese projects with total investment of $4.14 billion.

Pangasius price hits peak in Mekong Delta

Pangasius fish price now reaches VND27,000 a kilogram, the highest peak for the last recent years in the Mekong Delta. 

That was announced at a seminar in Can Tho city on Tuesday.

Stating at the event, Dr. Vo Hung Dung, standing deputy chairman of Vietnam Pangasius Association, said despite the high price, it has been difficult to forecast price movement in the upcoming time.

According to him, the current price hike is because of sharp reduction in fry fish supply after losses in previous years have sent many farms transfer into breeding others. He advised breeders to sell fish amid this high price period.

The Vietnam Pangasius Association reported that farmers in the Mekong Delta bred 739 hectares of the fish and harvested 672 hectares in the first quarter this year with the output of 210,000 tons.

The current high price ensures big profit for farmers however authorized agencies have warned them against spreading farming to avoid risks from price fluctuation.

Pangasius price increase has started since the Tet holiday, creating the longest hike period for the last many years.

Realty market sees more mergers and acquisitions

Some large-scale real estate projects delayed or frozen for years have recently been revived via mergers and acquisitions (M&A) deals which would help increase the market’s liquidity.

An Gia Investment and Tokyo-headquartered investment fund Creed Group completed the acquisition of seven blocks of the Lacasa complex in HCMC’s District 7 from Van Phat Hung Corporation earlier this month.

The project covers an area of around six hectares, with 2,000 apartment and officetel units in the pipeline. It requires a total investment of some VND3.5 trillion (US$153.6 million), according to Luong Sy Khoa, vice chairman of An Gia Investment.

The project had been delayed since 2013 due to the market slowdown in the 2009-2013 period. The new investors have intended to put these real estate products up for sale in the third quarter of this year which will be deployed in phases of two years on average, he said.

Prior to the deal, An Gia Investment had previously acquired five half-done projects. The company has plans to strike other M&A deals in the coming time.

Meanwhile, Hung Thinh Corporation has recently acquired around 20 half-finished projects. After a period of reinvestment, more than 10 projects have been put up for sale such as Moonlight Park View, 8X Plus, Tan Huong Tower, Sky Center, Melody Residences and Lavita Garden.

To date, NovaLand Group has got involved in dozens of half-done property projects, including Icon56, Galaxy 9, The Tresor, Lexington, RiverGate Residence, and Sunrise City.

An industry insider named Luong Sy Khoa said the majority of these projects have completed legal procedures, which allow new investors to finish their projects. Therefore, clinching M&A deals has recently been seen as an effective way to increase the market’s liquidity, as well as save enterprises’ costs and time.

If investors get involved in new projects, it would take them more than one year to go through the regulatory approval process, pay compensation, and implement site clearance, Khoa said.

In addition, the majority of delayed projects are in prime locations which cover large areas of land, especially those near the center, and have sufficient infrastructure. Hence, investors should grab these opportunities to develop their property products in a timely manner.

Le Hoang Chau, chairman of the HCMC Real Estate Association, said the real estate market in HCMC a few years back had some 500 half-done or frozen projects with over 14,000 apartment units. However, this situation has provided opportunities for property developers to make M&A deals.

He added with M&A deals, sellers could solve their financial problems while purchasers might reduce their investment cost and time. Thus the number of unsold apartments will gradually fall on the market.
HCMC seeks to bolster startup ecosystem

The HCMC government has just released a plan to bolster the startup ecosystem, with specific aims to support feasible startup ideas and projects, and launch a startup training program at high schools.

Under this plan, the city will introduce curriculums and materials on startup development with guidance on corporate organization and product development. Such materials will be taught in classes of startup idea formation and development, administration and startup training programs of high schools in the city.

The Department of Education and Training, the Department of Labor, Invalids and Social Affairs, universities and colleges will coordinate to create standard curriculums for startup training programs at universities, colleges, professional education centers and high schools in the city.

The city will support 50% of tuition fees to individuals and organizations participating in such courses and fund curriculum development.

In addition, HCMC will annually organize startup idea exchanges, startup contests and a startup day in October. The city also plans to provide the startup database and connect service providers, startup investment funds and enterprises.

The municipal government assigned the Departments of Planning and Investment and Finance to allocate funds from the startup budget worth VND1,000 billion to implement the plan.

Multi-storey car parks proposed at nine hospitals

Investors have asked the HCMC Department of Transport for approval to build parking buildings at nine hospitals to meet high vehicle parking demand, especially in the city center.

According to the department, the nine hospitals are Nhi Dong, Pham Ngoc Thach, Nguyen Tri Phuong, Trung Vuong, Tu Du, Dermatology, Eye, Tropical Diseases, and Oncology.

The department, together with the Department of Health, will review investors’ proposals for two parking models, namely smart parking buildings where vehicles would be automatically parked after owners pick up a card and semi-smart parking buildings where available parking spaces are displayed after owners collect a card.

The Department of Transport and investors are weighing high-rise parking lots on Ly Thuong Kiet Street in District 10 and Gia Dinh Park in Go Vap District.

In another development, city authorities had a meeting last week to find ways to speed up work on car park projects. Nguyen Thanh Phong, chairman of the HCMC People’s Committee, told the Department of Transport to find more locations where underground car parks could be built.

The Departments of Transport and Construction will publicize the current underground car parks in the city on the Internet so that vehicle owners can locate them. Meanwhile, the temporary parking lots which have been in service for more than five years could be allowed to stay on.

Lam Son Square is ruled out as a location for a high-rise car park as it could become an eyesore for the downtown landscape.

City chairman Phong told the Department of Transport to review underground car park projects and eliminate those investors unable to get the projects done as planned so as to find new investors.

In the short run, multi-storey car parks are seen as a suitable solution as their assembly is fast.

Banking sector has huge recruitment demand

Although the banking sector is not yet out of the woods, many banks such as HDBank, Sacombank and ACB have been recruiting thousands of employees in recent times, VnExpress reports.

Sacombank has announced to recruit more than 1,000 people while ACB needs 800 new staff. But these figures are nothing compared to HDBank which has announced 1,500 job vacancies in the first recruitment stage of 2017.

It is notable that the majority of job vacancies are for individual and institutional customer care services.

Among 1,000 job vacancies at Sacombank, 600 positions are for individual customer care service, 150 positions for small and medium-size corporate client executives and 20 positions for FDI corporate executives. The situation is the same at HDBank and ACB. 

“In order to increase competitiveness, the bank must attract talent, especially those specializing in sales,” said a deputy general manager of a joint stock bank in the south.

Earlier, the banking market also saw massive recruitments in 2016. Typically, BIDV and VietinBank recruited more than 1,000 employees while Lien Viet Post Bank recruited nearly 2,000.

A representative of HDBank said the massive recruitment is for the expansion of the bank’s business in the coming time.

“The recruitment by banks is usually done all year round, but it is most hectic in the first quarter of the year, the beginning of the business season,” he added.

A recent survey by the Statistical Forecasting Department of the State Bank of Vietnam showed that 46.5% of credit institutions plan to add full-time and part-time jobs in the first quarter of this year while none of them intends to cut their staff.

ExxonMobil and PVN cut deal to tap gas field in Quang Nam

ExxonMobil Corporation of the U.S. on March 26 signed a cooperation agreement with the Vietnam Oil and Gas Group (PVN) and the government of Quang Nam Province to tap the Blue Whale gas field, said a PVN source on March 27.

This is the country’s largest gas project with a total investment of around US$10 billion. PetroVietnam Exploration Production Corporation (PVEP) under PVN and ExxonMobil Vietnam Co Ltd early this year signed a framework agreement on the Blue Whale project development and gas sale. 

The PVN source said the Blue Whale gas field’s reserves are estimated to reach 150 billion cubic meters. Under the signed agreement, ExxonMobil will step up investment in a platform for offshore water separation, and two underground platforms with each having four wells, and an 88-kilometer pipeline connected to the shore of Chu Lai.

In addition, PVN will develop two onshore plants, including a gas treatment plant and a power plant with two generators with a combined capacity of around 600-700 megawatts (MW) each.

The two plants will be located in Nui Thanh District of Quang Nam Province and is expected to put into operation in 2023.

The volume of gas extraction from the field is estimated at around nine to ten billion cubic meters a year. Of the number, around one billion cubic meters of gas will be brought to Dung Quat Oil Refinery in the central province of Quang Ngai for deep processing.

In a related development, Binh Son Refining and Petrochemical Co Ltd (BSR), an offshoot of PVN that operates Dung Quat Oil Refinery, is expected to gain first-quarter revenue of VND21,000 billion, or US$920 million, accounting for 30% of the annual plan, VnExpess news site reports.

In addition, the after-tax profit reached VND1,800 billion in the first quarter, higher than the targeted VND1,682 billion. The company has paid VND2,400 billion in taxes to the state budget.

Late last year, BSR announced targets of obtaining revenue of VND62,400 billion for all of 2017, a contraction of VND10,100 billion compared to 2016.

BSR CEO Tran Ngoc Nguyen said the plan is based on the estimated oil price of US$50 a barrel. The oil refinery is currently running at 5% higher than the designed capacity.

This year, the oil refinery will suspend operations for 52 days for the third comprehensive maintenance period from June 5 to July 23.

 Government approves infrastructure leasing at Lach Huyen Port

Haiphong International Container Terminal Co Ltd has got the green light from the Government to lease infrastructure facilities at Lach Huyen International Port in the northern coastal city of Haiphong.

Document No.426 signed on March 27 by Deputy Prime Minister Trinh Dinh Dung says the Government has approved the company as the lessee to exploit the infrastructure of the port invested with State capital.

The Ministry of Transport is tasked to coordinate with the Ministry of Finance and relevant agencies to appraise and approve the leasing plan, and arrange an agreement signing ceremony.

This is not the first time the Government has approved leases of seaport infrastructure upon completion of the investment. Earlier, Thi Vai General Cargo Terminal and Cai Mep International Terminal in Ba Ria-Vung Tau Province, and An Thoi Port on Phu Quoc Island off mainland Kien Giang Province were leased to private firms with a leasing duration of 30 years.

Currently, the deep-water Lach Huyen Port is still underway. The project is divided into two components, with component A constructed in 2013 with a total investment of VND18.6 trillion (US$817 million), and funded by Japan’s ODA loans and the State budget.

Meanwhile, component B consists of two piers with a combined length of 750 meters along with handling equipment for container ships weighing up to 100,000 DWT.  Construction of the component started in May last year and is scheduled for completion in the first quarter of 2018, with a total investment of some VND6.6 trillion.   

Sovico, BSR in investment talks
     
Investment firm Sovico Holdings is in talks with the Binh Son Refining and Petrochemical Company (BSR Co Ltd) on exploiting opportunities arising out of the latter’s equitisation process.

The talks are focusing on BSR’s equitisation plan for 2017 as well as its Dung Quat Refinery expansion project, another major task undertaken by the company.

“The equtisation process is a chance for potential investors to partake in BSR’s progress, while the Dung Quat expansion programme is still in its developmental stage.

“Once it is operational, BSR’s market value will surely change accordingly,” said Tran Ngoc Nguyen, BSR General Director.

As the operator and overseer of the Dung Quat Refinery, BSR intends to complete the expansion in 2021, he said.

The refinery will increase its capacity by 30 per cent to 8.5 million tonne of crude oil per annum, meeting about 50 to 60 per cent of domestic oil demand, and generate export products meeting EURO IV and V standards.

Executives of both companies are also discussing import and export channels for BSR’s crude oil to accommodate Dung Quat’s expansion, operating capacity and growth opportunities in the context of fluctuating world oil prices.

“We hope to have further in-depth meetings with BSR to gather enough information before making our decisions on investing in BSR’s equitisation,” said Nguyen Thanh Hung, Chairman of Sovico Holdings.

Once the equitisation process starts in the third quarter of 2017, BSR expects to leave 49 per cent of its shares owned by the Vietnam Oil and Gas Group (PetroVietnam).

BSR aims to have three main investor groups: strategic shareholders, financial shareholders and registered shareholders.

Sovico Holdings’ current registered capital is VND1 trillion (US$45 million), with interests in a wide range of businesses including real estate. It is a majority shareholder in private airline Vietjet Air.

BSR’s 2016 revenue totalled VND5 trillion ($224.6 million), down 21 per cent from 2015. In the first quarter of 2017, however, the company has already earned a post-tax income of VND1.8 trillion ($80.8 million).

BSR general director Nguyen disclosed that at the end of 2016, many foreign partners had asked to purchase shares in the Dung Quat Refinery, including Russia’s Gazprom Neft and oil companies from Thailand and Singapore.

Key criteria for BSR’s future strategic partners include strong financial capability and experience in the oil refining field, he said.

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

Viet Nam’s two major c ities, Ha Noi and HCM City, topped the table of office yields, according to the latest World Office Yield Spectrum report by Savills and Australia’s Deakin University.

Viet Nam’s two major cities, Ha Noi and HCM City, topped the table of office yields, according to the latest World Office Yield Spectrum report by Savills and Australia’s Deakin University.

According to data from 54 cities across Asia, Europe, the US, and Australia, Ha Noi scored highest with a prime yield of 8.75 per cent, followed by HCM City at 8.5 per cent. Taipei brought up the rear with the tightest yield of just under 2 per cent while Hong Kong stood at 2.5 per cent.

“These results are positive and reflect the demand for commercial property in both the major markets in Viet Nam. These figures represent growing confidence and demand by occupiers off the back of general growth in the economy and business confidence showing a buoyant rental market,” said Matthew Powell, Director at Savills Ha Noi.

“Both office markets are relatively small in terms of total leasable area on the regional and global stage, so with the competition and potential market risk factors for international of an emerging market like Viet Nam we have seen yields of commercial transactions come up to these levels. Total numbers of commercial transactions are relatively small, especially involving international investors, and Savills has been involved directly with the majority of these.”

Savills commercial leasing team is seeing very strong demand from occupiers in both markets, and strong investor demand for operating commercial property assets, and Savills is actively working on a number of office property transactions across Viet Nam, he said.

The World Office Yield Spectrum report also found yields across 11 gateway cities had firmed by an average 95 basis points since December 2014, with San Francisco witnessing a dramatic 32 per cent fall from nearly 7 per cent to 4.64 per cent, while Shanghai and LA West barely bothered the analysts with falls of just 0.29 and 0.31 per cent, respectively.

Of the gateway cities Sydney led the pack offering by far the most attractive yields at 5.37 per cent, with LA West and San Francisco the only others offering above 4.50 per cent.

Global office yields continue to firm as investors seek safe havens for their funds amidst ongoing economic and political uncertainties, and with those factors likely to prevail in the short to medium term the office investment markets, particularly in gateway cities, look certain to continue to prosper, according to global investment advisor Savills.

The report editor, Savills’ National Head of Research in Australia, Tony Crabb, said generally office markets looked set for another year of strong investment driven by office property’s most preferred investment status along with economic and political factors which had pushed investors towards the safety of bricks and mortar.

“This is an interesting time in the investment cycle where markets have responded to the inflation/growth trade by pushing bond yields and growth stocks, whilst also recognising office markets should perform well as demand grows,” Crabb said.

He said with some level of economic and political uncertainty remaining in most markets it was fair to say that office risk premiums would continue to offer very good value and hence drive demand and, in some instances, even firmer office investment yields.

“Much of what happens in 2017 and beyond will depend on the course the US Federal Reserve takes with regards to interest rates and the new President’s policy settings.”

“Those factors, along with Brexit negotiations and elections in key European countries, will largely determine how currencies behave, how trade flows and how capital moves around the world,” Crabb said.

He said what, if anything, would limit office property investment was the shortage of stock in most gateway markets which had experienced, in some instances, record investment levels in recent years.

“That shortage of stock is being exacerbated by the strength of leasing markets, especially in gateway cities, which is driving tighter vacancy and rental growth, and landlords are happily holding on for the ride,” Crabb said. 

VNS

Đất Xanh to hike charter capital, establish subsidiary

The managing board of Đất Xanh Real Estate Service & Construction Corporation has approved plans to hike its charter capital to VNĐ3 trillion (US$132 million), and establish a $42 million subsidiary this year.

The capital increase will be carried out in a two-phase payout of stock dividends.

In the first tranche, nearly 32.8 million shares will be issued at the ratio of 13 per cent to pay dividends for business performance in 2016, worth nearly VNĐ329 billion, while the second tranche will offer 14.3 million shares at the ratio of 5 per cent worth VNĐ143 billion.

The company also intends to offer its employees 3 million shares under the Employee Stock Ownership Programme (ESOP) at an estimated price of VNĐ10,000 a share.

Its current charter capital is VNĐ2.53 trillion.

This plan will be presented at the company’s 2017 annual shareholders’ meeting for approval.

Đất Xanh will also seek the shareholders’ endorsement for its plan to set up Sài Gòn Riverside Investment Co Ltd to develop the SaigonRes Riverside project in Thủ Đức District, HCM City.

Đất Xanh Real Estate will contribute 75 per cent of the VNĐ950 billion ($42 million) for the company, while Sài Gòn Real Estate Joint Stock Company will throw in the remaining 25 per cent.

Shares of Đất Xanh Real Estate (coded DXG) has climbed over 50 per cent this year and hit a record high of VNĐ19,600 per share on March 16.

Last Friday, FTSE Vietnam ETF, one of the two major foreign-run exchange-traded funds in Việt Nam’s securities market, added DXG into its basket in the first-quarter review.

Benefiting by this hike, a group of foreign investors related to Dragon Capital, including Amersham Industries Limited, Grinling International Limited, Vietnam Enterprise Investment Limited and Norges Bank, has offloaded 4.2 million combined DXG shares, thereby reducing their stakes here from 16.22 per cent to 14.56 per cent.  

Action plan drafted to develop shrimp sector

The Ministry of Agriculture and Rural Development is collecting opinions to finalise a national action plan for shrimp development through 2025.

The draft plan, which will be submitted to the Prime Minister for approval, looks to turn the shrimp sector into a big industry with sustainable development that is adaptable to climate change and friendly to the environment.

At the same time, the plan hopes to improve the quality, production efficiency and competitiveness of shrimp products, benefiting farmers, businesses and the country’s economy.

The shrimp sector is projected to rake in 4.5-5 billion USD in export turnover and record an annual average growth of 9.5-12 percent in 2017-2020. 

In 2021-2025, a hi-tech shrimp industry and large-scale eco-shrimp farming areas will take shape, working towards the goals of 10 billion USD in export turnover and an average growth of 12-14 percent per year.

The total area used for brackish water shrimp farming should reach 710,000ha with total output of 850,000 tonnes of shrimp during 2017-2020, and expand to 750,000ha and 1.1 million tonnes of output in the period from 2020-2025.

Areas will be zoned off for hi-tech brackish water shrimp raising, concentrating in the Mekong Delta and central coastal regions.

Bac Lieu is designated to be a hi-tech brackish shrimp farming centre in the Mekong Delta and the country, while the southernmost province of Ca Mau will be built into an eco-shrimp breeding cradle.

Giant freshwater prawns will be mainly raised in the Mekong Delta, whilst lobsters will be farmed in central coastal provinces of Khanh Hoa, Phu Yen and Binh Dinh.

Towards those goals, the Ministry of Agriculture and Rural Development pledged to improve irrigation and transport systems at large-scale shrimp farming areas, while encouraging small-scale production facilities to join in cooperatives to create large material production areas.

The ministry will invest in research to produce quality breeding shrimps and develop the domestic feed industry.

The application of modern technologies in shrimp farming and processing will be encouraged to ensure food safety and foreign customers’ demands.

At the same time, the ministry will push forward surveys of foreign markets and trade promotion activities to expand markets for Vietnamese shrimps.

Ninh Thuan develops maritime economy

The People’s Committee of the south central coastal province of Ninh Thuan has just approved a project to develop local maritime economy by 2020 in a comprehensive and modern way.

Under the plan, the locality will focus its investments in key sectors such as aquatic farming and sea-based tourism.

Chairman of the provincial People’s Committee Luu Xuan Vinh said Ninh Thuan aims to develop a legal framework and measures to mobilise resources for constructing socio-economic infrastructure, coastal urban areas, and implementing social welfare policies, vocational training, job generation and climate change adaptation.

By 2020, the sea-based economy is expected to account for 38-40 percent of the local GDP, generate 17 – 17.5 trillion VND (767.75 million USD) in production and service value, and make up 46-47 percent of the province’s total export values, according to Vinh.

The province also continues implementing the Government’s policies on support for local fishermen to work offshore and the development of high-capacity fishing vessels, while setting up offshore fishing teams to safeguard the country’s sea and islands sovereignty.

According to the provincial Department of Planning and Investment, over 10 trillion VND (438.7 million USD) has been mobilised from 2011 – 2016 for maritime economic development. Maritime economic sectors contributed 25.2 percent of the province’s GDP and created jobs for over 41,000 labourers.

The province has 2,754 vessels with a combined capacity of 299.696 CV, including 159 offshore fishing ones.

As of March, 145 fishing teams with the involvement of 885 vessel owners have been set up to support each other during their offshore work.

Ninh Thuan, with over 105 kilometres of coastline, is among the nation’s major fishing grounds, offering over 60,000 tonnes of aquatic products per year for processing and exports.

The province also boasts its sea-based tourism potential thanks to favourable natural condition and such beautiful beaches as Vinh Hy, Binh Tien, Ninh Chu, Ca Na. It also has huge potential for wind-power and solar-power development.

Dong Thap gains results with g2b co-operation

The Mekong Delta province of Dong Thap proudly wears its business-friendliness on its sleeve.

Last year, it surprised the nation with the “Chairman Café”, an establishment in close proximity to the Dong Thap People’s Committee headquarters.

The café has become a space where representatives of local businesses can meet regularly with provincial Chairman Nguyen Van Duong, Party Committee Secretary Le Minh Hoan and other key figures to discuss regulatory obstacles and solutions.

It has been hailed as a creative, interactive channel between governmental leaders, policy makers and businessmen, setting a fresh example for government to business interactions.

The province continues to build on its image with a third-place ranking in the latest provincial competitiveness index (PCI) released by the Viet Nam Chamber of Commerce and Industry (VCCI).

The ranking records major improvement in the province’s market integration, labour quality, business support, information disclosure and improvements in its legal framework.

Several policy chances from the provincial leadership in recent years have been credited with effecting positive changes in the investment and business environment.

The Dong Thap’s Department of Planning and Investment has issued several incentive policies for investors under its 2016-20 plan, particularly in the agriculture, seafood, and infrastructure structures, as also several light industries.

The policies have included tax breaks on land, import inputs, income tax concessions and low interest loans for both domestic and international investors.

“We consider local businesses’ success as our own, and always try our best to solve any regulatory problem they may encounter here in Dong Thap in a timely and efficient manner, to ensure the most favourable conditions for their operation,” said provincial Chairman Duong.

Other actions by the province’s leadership include the creation of a public administration centre in October 2016 to resolve bureaucratic procedures with 16 provincial departments.

Dong Thap has also promoted the use of social media in addition to their official site to promote information transparency.

In 2016, more than 55 new investors visited Dong Thap looking for business opportunities, and the province also recorded significant improvement on the entrepreneur scene.

Just last year, 418 businesses were newly registered in Dong Thap with a total capital of VND2.48 trillion (US$111.3 million), a 5.3 per cent increase over 2015.

Additionally, the province also issued investment certificates to 42 projects with total capital of 2.14 trillion, in industrial construction, agriculture and the service sectors.

Although Dong Thap’s latest spot in the VCCI’s ranking is one notch below from second place in 2015, the fact that it has been in the top three for five consecutive years reflects sustained efforts to improve province’s business and investment environment.

Chairman Duong has stated the administration’s intention to continue improving the regulatory environment. He thanked local businesses in a radio message right after the PCI ranking was announced.

Omni-channel shoppers keen on promotions

The latest report from Nielsen, Omni Shopper Trends 2017, contained an interesting figure: 57 per cent of omni-channel shoppers want to make use of promotions for shopping.

The figure stands in contrast to traditional shoppers, where only 6 per cent want to make use of promotions.

The report also indicates differences in shopping habits between the two types. Among traditional shoppers, 30 per cent go shopping for daily needs, 24 per cent go for leisure, 19 per cent want to restock their pantry, and only 6 per cent go to make use of promotions.

On the other hand, up to 57 per cent of omni-channel shoppers shop because of promotions, around 45 per cent to purchase for daily needs and restock their pantry, and 35 per cent shop on special occasions.

According to Nielsen, Vietnam’s e-commerce market has been developing actively in recent years due to the changing behaviors of Vietnamese shoppers, the widespread adoption and increased ownership of smartphones, laptops and tablet devices, and the readiness of the market.

A new, connected shopper has emerged: the omni-channel shopper. They are avid consumers with enough income to make discretionary choices in their spending after purchasing the basic necessities and have access to the internet and all that comes with participating in the digital economy.

The report shows that 82 per cent of traditional shoppers regularly purchase product as planned while more than half of omni-channel shoppers will compare different brands (52 per cent) or will test the quality or reputation of the brands (63 per cent) before making a purchasing decision.

Mr. Roberto Butragueño, Associate Director of Retailer Services at Nielsen Vietnam, said that because omni-channel shoppers have access to the internet, they will actively search, go to websites, and read reviews to explore information about brands and products before making a purchasing decision.

“Stores aren’t going to disappear any time soon, but they will undergo a dramatic transformation as e-commerce grows and shopper expectations change,” he said. “Retailers need to consider what role physical stores will play in their omni-channel strategy and how they can use them to strengthen their offerings and deliver value on each trip.”

Promotions may not be the only factor helping a brand stand out as shoppers seem to be overwhelmed by promotions being offered by different brands. This, however, is not the case with omni-shopping channels.

“To keep shoppers coming back, brands and retailers must exceed their expectations and convincingly demonstrate that value for money, which is a combination of low prices and other attributes, is truly justified,” said Mr. Butragueño.

Gamuda Land set to launch The ZEN Residence

Gamuda Land will officially introduce its third luxury apartment project in Hanoi next month, The ZEN Residence at Gamuda Gardens Township, at Km 4.4 Phap Van, Yen So ward in Hoang Mai district.

This is a key project of the Malaysian property developer in Vietnam, focusing on homebuyers with demand for advanced and modern healthcare. Taking inspiration from natural resources and built on the four foundations of Zen (soul, health, mind, and wisdom), The ZEN Residence promises to be an exceptional architectural landmark in the city.

ZEN’s design concept originates from a harmony between soul, health, mind and wisdom. How to create harmony between these is the hardest question for human beings in achieving a peaceful life. These elements make up the foundation of Zen, a simple yet balanced and meaningful lifestyle.

The project is designed with an open space that allows natural light to access every corner. Two loggias, one connected with the kitchen and one connected with the living room, can be flexibly used, and residents can take advantage of each by turning it into a private garden, a relaxing space for coffee every morning, or for reading books.

The green area at The ZEN Residence accounts for 16 per cent more space than the housing area. The clean environment provided by abundant green space enhances personal relaxation when coming home, compared to the polluted and stifling environment usually encountered at high-rise buildings in the center of Hanoi.

Daily fitness regimes such as jogging and cycling, etc. can be done at the spacious area outside of the apartment entrance or within the vicinity of the township. More strenuous activities such as swimming, yoga or body building are also available, with owners having access to international-standard swimming pools, an outdoor playground, and a modern gym.

Units at The ZEN Residence suit several tastes. For newlyweds, the cozy area of a studio apartment is the perfect choice, while for families with many generations living together, two-to three-bedroom units or high-end penthouses are more fitting.

Entertainment activities at The ZEN Residence, whether on the rooftop garden, in the shopping mall on the first floor, or at the outdoor playground on the fifth floor, provide a lively spirit to residents’ social lives, contributing to a healthy and active lifestyle.

In education, the Singapore International School (SIS), IQ Montessori, Little Maple and Blossom @ Gamuda Gardens kindergartens are all modern institutions. The Red River petrol station and retail center at Gamuda Gardens promise to be a busy hub for transit in the southern gateway to the capital.

Gamuda officially began construction of The TWO Residence last year, in cooperation with the Hoa Binh Construction & Real Estate Corporation, one of the most prestigious companies in the field both nationally and internationally. This was the result of great support from Gamuda Land Vietnam and will be immensely appreciated by future residents of The TWO Residence.

At a time when many handovers in real estate projects have been delayed, the timely construction progress at The TWO Residence further solidifies customer confidence in Gamuda Land Vietnam as a developer and their belief in the sustainable development of the Gamuda Gardens Township.

Gamuda Land, a real estate corporation under Gamuda Berhad Malaysia, is one of the largest infrastructure companies in Malaysia. It marked its presence in Vietnam with its first project, the 500 ha Gamuda City in Hanoi. With total investment of $5 billion, Gamuda City includes five key components: Yen So Park, Gamuda Lakes, Gamuda Central, Gamuda Plaza, and Gamuda Gardens.

Low cost airline proposes to build passenger terminal in Hai Phong

Vietjet Aviation Joint Stock Company had proposed the Ministry of Transport to permit construction of the second passenger terminal at Cat Bi Airport, the northern city of Hai Phong, said the company yesterday.

The 22 hectare project is estimated to have the total investment capital of VND6 trillion (US$263.31 million) and capacity of 8-20 million passengers a year.

Beside the terminal, the project comprises an apron and taxiways to connect with existing works of the airport. If being approved, the project is expected to start construction in the fourth quarter this year and complete by the same quarter in 2019.     

Silk Sense resort up and running in July

A Dong Villas Company Limited has said it will open Silk Sense Hoi An River Resort in the ancient city of Hoi An in Quang Nam Province in July this year.

The resort will introduce Vietnamese cultural traits inherent in traditional silk products to international tourists, said Tran Thai Do, chairman of A Dong Villas Company, the investor of the resort. 

Kirkpatrick Steven Derek, general manager of the resort, said Silk Sense represents a harmonious combination of East Asian architecture and modern European design.

The resort has 70 guest rooms and 16 two-storey villas equipped with modern facilities, as well as restaurant, bar, swimming pool, gym and spa, among others.

Located along the beautiful Co Co River and about one kilometer from the beach, Silk Sense cost a total of some US$7 million.

EVN looks to make getting electricity easier

Vietnam came 96th among 190 countries in the ease of getting electricity last year as shown by the Doing Business 2017 report of the World Bank, so the sector will try to improve the ranking by 30 places this year this year, according to HCMC Power Corporation.

Nguyen Van Ly, deputy general director of HCMC Power Corporation, or EVN HCMC, said at a conference in HCMC last week that the team responsible for doing the Doing Business report annually surveys the electricity market in the city based on factors such as procedures, time, cost, transparency of electricity pricing and reliability of electricity supply.

The procedures for electricity meter installation and transformer station take 1.36 days and 5.74 days respectively. The stations which are not included in the zoning plan will need five more days, said Ly.

According to the Doing Business report, the number of procedures for handling a request for electricity supply in 2016 fell from six to five. In addition, it takes 11 days from the date of a request for power supply being submitted to install an electricity meter for the customer, four days less than before.

Statistics in HCMC show that in the last five years, power outages have plunged 20-40% against the previous five years. A customer faces five to six power cuts a year, Ly added.

Japanese firms present tech solutions to low emission development

A business mission from the Japanese city of Fukuoka has introduced technological solutions to low emission development and urban resilience in the Mekong Delta city of Can Tho.

At a seminar last Friday, Takashi Miyachika, a representative of Taiho Metals Co, presented a system of water-proof doors and flood shields which has been successfully applied in Japan and China. He said the system is designed to prevent floodwaters from inundating underground works.

He said his company would be able to install such systems in Can Tho and other provinces in the delta.

Daiken Corporation’s Norishika Matsuo said his company could build a low-cost underground tank capable of holding 100 tons of water for household use and vegetable farming. Installation work could take a week.

The tank is suitable for residential areas, schools, parks, parking lots and factories which are prone to flooding, he said.

Hiroki Murakami from Sysmet Corporation introduced an early-warning system for disasters called Zerosai. The advanced information technology application can be controlled by a smartphone.

Yoshifumi Onoue of Kyowakiden Vietnam Co Ltd showed a seawater desalination system and other water treatment technologies for the Mekong Delta where salinity intrusion is not uncommon.

Can Tho City’s vice chairwoman Vo Thi Hong Anh told the Daily that the local government would look into these modern technologies before they are applied, especially in residential areas.

Indochine Junk’s new cruise ship ready in Sept

Indochine Junk Services Company Limited will put into operation the Indochina Queen Cruise vessel in September at Nha Rong Wharf in HCMC.

The boat will be able to serve 600 guests at a time and host a meeting for up to 300 participants.

An Son Lam, director of Indochine Junk, said the three-storey Queen Indochina is 69 meters long and 13.8 meters wide and that besides restaurant and entertainment services, guests could organize a meeting on board the ship.

The cost of the vessel is more than US$1 million. Guests will board the boat at the Nha Rong Wharf and enjoy a cruise along the Saigon River, with stops in District 9 and Can Gio District.

The company now has three restaurant boats in service at the Nha Rong Wharf, with the largest able to accommodate around 200 passengers.

HCMC plans ports and wharves in center

HCMC authorities are planning ports and wharves in the city center to meet the needs for river tourism development and road traffic congestion reduction.

The HCMC People’s Committee Office said last Friday that the city government had assigned the Department of Transport to coordinate with other relevant agencies to urgently review and recommend locations downtown for ports and wharves to develop water taxi and river cruise services.

The city government asks planners to take into careful consideration elements such as urban landscape, safety and connectivity between road and river traffic; investment plans; and types of investment.

Hydrofoils and restaurant boats were previously allowed to use the downtown Bach Dang Wharf but they have moved to the Saigon Port area near the Nha Rong Wharf in District 4 since late March 2015. The city is working on a project to renovate the Bach Dang wharf.

In June, the city will put into operation the first river bus route connecting the Bach Dang Wharf, District 1 and Thu Duc District. Therefore, ports and wharves in the city center should be planned to ensure the success of the forthcoming river bus service.

VFA’s monopolistic power kills rice export competition

The Vietnam Food Association’s (VFA) monopolistic power in rice export activity has effectively compromised competition among exporters, according to a report by the Central Institute for Economic Research (CIEM).

Dr. Dang Quang Vinh, lead author of the report, said at a seminar held in Hanoi last Saturday by CIEM that Decree 109/2010/ND-CP on rice export operations had created a restricted playing field with rice exporters facing so many barriers to market entry.

To get a certificate for rice export, enterprises are required by the decree to have at least one warehouse with a minimum capacity of 5,000 tons, a 10 tons per hour milling facility, and have exported rice for 12 consecutive months.

VFA effectively monopolizes rice export activity in the country, leading to unhealthy competition between rice exporters. After signing export contracts, exporters must register with VFA within three working days.

Worse still, Vinh noted, Document 1101/TTg-KTTH signed in July 2013 by then-Deputy Prime Minister Hoang Trung Hai tasks the Ministry of Industry and Trade with approving the planning of rice exporters.

The conditions for approval of the planning include limiting the number of rice exporters at 150 nationwide and revoking rice export certificates from enterprises failing to ship abroad 10,000 tons a year for two consecutive years.

The planning must prioritize enterprises having material farming zones, and cooperating with or buying rice from rice farmers but restricts rice trading houses from participating in export activity as much as possible. In the long run, key rice exporting firms will be required to develop their own material zones, and cooperating with or placing orders directly with rice farmers, according to the document.

At the seminar, CIEM President Nguyen Dinh Cung threw his weight behind an order on Decree 109 revisions which the Prime Minister gave during a conference on solutions to sustainable development of the rice sector in An Giang Province. “His order must be strictly obeyed.”

The decree must be amended in a way that complex rules on rice export must go and the planning of rice exporters must be eradicated, PM Nguyen Xuan Phuc said, and the VFA must be deprived of the powers which it should not have been given, such as those concerning the setting of the floor rice price and the allocation of rice export quotas, to allow market forces to decide.

Economist Pham Chi Lan said at the seminar that the rice trade policy was seen as the worst such policy. “VFA is an example of group interest,” she stressed.

In the report, CIEM proposes removing the centralization of contract negotiations and treating VFA as a normal industry association rather than a powerful state agency. VFA should be equally represented by all stakeholders in the rice value chain, especially rice producers, said CIEM.

The Ministry of Industry and Trade has abandoned the planning of rice exporters but Decree 109 still abounds with tough conditions.

In 2010, before Decree 109 came out, more than 200 enterprises were active in rice export, said CIEM. However, the figure has now fallen to 145.

Saigon Co.op plans 500 new convenience stores this year

Saigon Co.op plans to open 500 Co.op Smile convenience stores to expand its retail networks to maintain its position as the nation’s biggest retailer.

Around 190 existing stores of Saigon Co.op will be upgraded into Co.op Smile outlets and the rest will be built in HCMC and neighboring provinces this year.

Saigon Co.op, which has long been known for Co.opmart supermarket brand, formally announced the new Co.op Smile brand late last year. Co.op Smile stores, which are 20 to 200 meters square each, are mainly situated in urban and suburban residential areas.

Each store costs VND1-2 billion and stocks 1,500 to 2,000 products such as food, cosmetics, clothes.

There are currently some 20 Co.op Smile convenience stores. With the new store brand in place, Saigon Co.op can continue taking the lead on the retail market.

Saigon Co.op’s major store brands include Co.opmart (supermarket), Co.opXtra (hypermarket), Co.opFood, Ben Thanh Store and Sense City.

Saigon Co.op has plans to raise its current 100 Co.opFood stores to 165, launch 8-10 new Co.opMart supermarkets, and commence construction on one more Sense City commercial center in the southernmost province of Ca Mau, bringing the total to three.

The company is working on a plan to establish a brand-new business model called Co.opMart Finest that connects multimedia and other forms of shopping.

QTSC targets to become smart IT city

Quang Trung Software City (QTSC) in HCMC will be developed into a smart information technology (IT) city, heard a ceremony held last week to celebrate the 16th anniversary of QTSC’s establishment.

To achieve this goal, QTSC is implementing a number of projects and solutions to enhance its operations, including smart building, face search, car detector, helpdesk, customer relations management and smart grid.

Lam Nguyen Hai Long, director of QTSC Development Co, said some of the IT projects and solutions have produced positive results in their pilot stages and are expected to help develop QTSC into a smart IT city. The company is investing more in improving internal transport infrastructure to build its brand globally.

To date, 140 software, digital content and IT services firms have set up shop in QTSC, including 49 foreign-invested enterprises. Their combined revenues amounted to VND6.45 trillion (around US$288 million) last year, up a staggering 30.4% compared to the year before, and their exports totaled US$185 million, a 41% year-on-year surge.

Vietbuild attracts foreign firms     

More than half the companies that participated in Vietbuild Ha Noi 2017, an annual exhibition on housing, home decoration and household appliances, were foreign firms.

This is the highest rate until now as the average was 10-15 per cent per year.

The high number of foreign businesses has helped local firms exchange products without spending money on foreign tours.

In addition, domestic companies have become aware of their strengths and weaknesses to be better prepared for competition and international integration.

The exhibition, which wrapped up on Sunday at the National Exhibition Construction Centre, saw new products with change in quality, function and model, Nguyen Dinh Hung from the organising team said.

The new products and services are suitable with modern, large scale construction while ensuring energy saving and environmental friendliness.

The five-day event showcased a wide range of new products at nearly 1,700 pavilions, such as construction material, electric equipment, doors and exterior-interior decor products, as well as paints and solar energy systems. The number of pavilions rose by 30 per cent in comparison with last year.

Viet Nam’s construction material market is witnessing tremendous potential thanks to development of the real estate market and rapid urbanisation.

Central bank injects more money into market     

State Bank of Viet Nam made a net cash injection of VND16 trillion (US$704.8 million) via open market operations in the past week to support liquidity of the banking system, Bao Viet Securities Co (BVSC) reported.

BVSC reported that the amount doubled that of the previous week.

The net cash injection, together with high inter-bank rate, showed that the liquidity of the banking system was not as good as the previous weeks, BVSC’s analysts said.

Inter-bank rate last week increased by 0.15 per cent to 0.28 per cent per year for all terms, pushing the overnight rate to 4.7 per cent per year, the one-week rate to 4.75 per cent and the two-week rate to 4.77 per cent.

During the week, the central bank stopped issuing T-bonds of all terms. 

I3F Vietnam 2017 to open in HCM City     

The fourth international festival of natural products and functional foods in Viet Nam (I3F Vietnam 2017) will take place in HCM City’s Phu Tho Indoor Sports Stadium from July 14 to 16.

The event will be jointly organised by Viet Nam Association of Functional Foods (VAFF) and Asia Trade Fairs and Business Promotion JSC (ATFA) with support from the Ministry of Health, Ministry of Science and Technology, Department of Food Safety and ASEAN Alliance of Health Supplement Associations (AAHSA).

It aims to provide opportunities to organisations to meet and seek partners, exchange their practical experiences and promote business co-operation through meaningful activities at the festival.

At the I3F Vietnam festival, customers will have opportunities to find suitable products for their needs, get advice from experts, and receive incentives for their businesses. Meanwhile, businesses can promote their brand image, and determine the quality of their products and services.

There will be several activities conducted during the festival such as ‘Golden Product for Public Healthcare Award’ and a seminar on functional foods.

About 150 booths from hundreds of domestic and foreign businesses will showcase their products at the festival. It is expected to attract 50,000 visitors.

Petrol prices drop by over 700 VND per litre

The prices of RON 92 petrol and bio-fuel E5 dropped 708 VND and 661 VND per litre respectively, from 3:00 pm on March 21.

Following a joint decision by the Ministry of Industry and Trade and the Ministry of Finance, the prices of diesel 0.05S and kerosene were also slashed by 609 VND and 657 VND per litre, respectively. 

Under the joint decision, RON 92 and E5 petrol is sold at no more than 17,314 VND (0.76 USD) and 17,099 VND (0.75 USD) per litre respectively, while the new ceiling price of diesel 0.05S and kerosene are 13,838 VND (0.61 USD) and 12,177 VND (0.53 USD) per litre. 

The average global price of petrol products during the last 15 days to March 21 was down 4 USD compared with previous price adjustment, hence the reduction in the domestic prices.

The adjustment marks the second decrease in fuel prices this year.

The prices of petrol and oil are adjusted every 15 days by the two ministries depending on changes in the world market.

Reference exchange rate goes down 1 VND

The State Bank of Vietnam adjusted the reference VND/USD exchange rate down by 1 VND from the day ago to fix it at 22,253 VND/USD on March 22.

With the current + /- 3 percent VND/USD trading band, the ceiling exchange rate is 22,912 VND per USD and the floor rate is 21,585 VND per USD.

In the opening hours, commercial banks made slight changes to their rates.

BIDV and Vietinbank adjusted their buying and selling rates down 5 VND from the end of March 21, which are now 22,745 VND and 22,815 VND, per USD.

Meanwhile, Vietcombank listed the buying rate at 22,750 VND/USD and the selling rate at 22,820 VND/USD, unchanged from the previous day.

Vietnamese firm contributes to Cambodia’s agriculture development

The products of Vietnam’s Binh Dien Fertilizer Joint Stock Company (BFC) have contributed to modernizing Cambodia’s agriculture, said Cambodian Deputy Prime Minister Men Sam An.

The Cambodian leader made the remark during a ceremony for BFC and Cambodia’s Yetak Group to sign a strategic cooperation agreement in Phnom Penh on March 21.

She spoke highly of Vietnam’s assistance to Cambodia’s agricultural sector through transferring advanced techniques and providing organic products serving agricultural production. 

According to the Deputy PM, BFC’s fertilizer has been widely used by Cambodian farmers, helping improve the efficiency of agricultural production, reduce production costs and raise profit. 

She also thanked the firm’s active contributions to social welfare activities in her country, including support for flood victims and disadvantaged pupils. 

BFC General Director Le Quoc Phong said the firm will continue its price support policy and provision of technical assistance to Cambodia farmers, helping them improve the productivity and quality of farm produce, and increase profits. 

Over the past 15 years, BFC’s cooperation with the Yetak Group was efficient. The volume of Binh Dien’s “Dau Trau” fertilizer consumed in Cambodia increased to over 100,000 tonnes a year at present from only 2,000 tonnes in 2000. 

The fertilizer has been used in 26 provinces and cities across Cambodia, affirming its position in the market. 

Based in HCM City since 1973, BFC engages in the manufacture and trade of fertilizer, cattle-feed and aqua-products. It also produces, processes, and packages insecticides. It accounts for about 30 percent of the country’s NPK fertilizer demand.

With one plant in Long An, and four subsidiaries in other provinces, BFC is capable of producing over one million tonnes of fertilizer each year.     

Banks urged to invest in brand development

Three joint stock banks, BIDV, Vietcombank and VietinBank, are now the country’s most valuable banking brands.

However, despite being the country’s largest banks by far, their brand value in monetary terms is very low.

For instance, for Vietcombank, it made up only 4 percent of its total assets of around 576.53 trillion VND (25.3 billion USD) by October 2016.

It is slightly higher for Vietinbank and BIDV at 10 percent and 11 percent, respectively.

The comparable figures are 25 percent globally and 16-18 percent in Southeast Asia.

Why are Vietnamese banks unable to add value to their brands?

The first and obvious reason is that they, including the major ones, have not paid much attention to investment in building their brands.

They have only managed to grow in the last few years of their familiarity with the marketplace and relationships.

Another reason is that Vietnamese banks still prioritise customers aged 40 and more thinking they have a stable income and accumulated savings.

But it is young people who are familiar with and avid users of digital technologies, virtually a pre-condition for promoting brands.

Experts urge Vietnamese banks to invest in building brands, especially if they want to expand abroad.

Obviously, it will not be clever of the lenders to venture into other markets if they are completely unknown there.-

HCM City welcomes Singaporean businesses

The southern economic hub of Ho Chi Minh City is improving its business environment to create the best conditions for foreign enterprises, including those from Singapore, to make productive investments.

Chairman of the municipal People’s Committee Nguyen Thanh Phong made the remark at a meeting with Singapore’s Prime Minister Lee Hsien Loong, who is in an official visit to Vietnam, in HCM City on March 21.

He said HCM City has pioneered in promoting cooperation with Singapore and hoped the country – as the biggest investor in the city – will carry out a major investment project to symbolize their sound cooperative ties.

The official suggested Singapore step up cooperation and investment in clean food industrial parks, provide technological support for planning management and metro line development.

The southern metropolis wants to receive more assistance from Singapore in improving human resources quality and learnt from its experience in urban management and development, and smart city building, he added.

He also reiterated Vietnam’s consistent policy of tightening the friendship with Singapore on the bilateral and multilateral basis for the sake of the two peoples as well as for peace, stability, cooperation and development in the region and around the world.

Prime Minister Lee Hsien Loong said the relations between Vietnam and Singapore have been increasingly reinforced and developed over the past time, illustrated by the strong growth of the 21-year-old Vietnam-Singapore Industrial Park (VSIP).

The presence of over 900 projects invested by Singaporean firms is a vivid demonstration of the country’s interest in HCM City, he said, adding that Singapore hopes to conduct more cooperation activities with the city, including the exchange of officials and experience sharing in metropolis management, building and development.

During his stay in HCM City, the PM is scheduled to meet with the Singaporean business community and attend a ceremony to launch a business centre of Mapletree – a leading Singaporean investor in HCM City. The PM and his spouse are also scheduled to tour several historical relic sites.

Netherlands seeks agricultural cooperation with HCM City

Many enterprises from the Netherlands wish to boost cooperation with Ho Chi Minh City in agriculture, contributing to Vietnam’s agricultural development, said a representative from the Dutch Ministry of Economic Affairs.

Marjolijn Sonnema, Vice Minister for Agriculture of the Dutch Ministry of Economic Affairs, said the businesses highly valued potential for cooperation in this sphere with the city when she met with Vice Chairman of the municipal People’s Committee Le Thanh Liem on March 20.

The Netherlands and Vietnam have built a close relationship on the basis of trust and long-term cooperation, she said, affirming that her country attaches importance to strengthening and expanding cooperation with Vietnam. 

For his part, Liem highlighted the flourishing development of the bilateral ties, and thanked effective support of the Dutch side, especially those from Rotterdam city’s authority for HCM City in coping with climate change, managing water resources and preventing floods.

He affirmed the municipal authorities will create favourable conditions for foreign firms, including Dutch companies, to invest in the city, especially in high-tech agriculture and biotechnology.

During the meeting, the two sides discussed a number of cooperative projects in agriculture and information technology, including cooperation between the Dutch side and the Saigon Trading Group (Satra) in implementing a flower trading centre, and with the Saigon Industry Corporation (CNS) in manufacturing integrated circuit in the city. 

Earlier the day, Marjolijn Sonnema delivered a speech at a business forum on agriculture-innovation, and attended a programme to promote links between the two countries’ enterprises in HCM City.

Vietnam and the Netherlands established a strategic partnership on climate change adaptation and water management in 2010, and signed a strategic partnership agreement on sustainable agriculture and food security in April 2014. 

Bilateral trade is growing steadily. In 2015, Vietnam’s exports to the Netherlands increased by 42 percent and imports by 37 percent. The Netherlands is the second largest trade partner and the biggest investor in Vietnam in the European Union.

APEC business activities bustle toward year’s end

APEC business conferences and forums will be in full swing in September and November, said Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) at a press conference in Hanoi on March 21.

He revealed the information while updating the conference on preparations for the APEC CEO Summit and business activities chaired by his agency within the framework of the APEC Vietnam Year 2017.

Accordingly, there will be six functions taking place in the two months.

The series begins with a start-up forum in Ho Chi Minh City on September 13, on the sidelines of the APEC Small and Medium Enterprises Ministerial Meeting, as well as an APEC female business forum in Thua Thien – Hue in the same month.

Loc said Google and Facebook have committed to taking part in and assisting the organisation of the two forums.

Other events are scheduled to run in Da Nang in November. They are the fourth meeting of the APEC Business Advisory Council (ABAC) between November 4 and 7, the APEC CEO Summit between November 8 and 10, a Vietnam trade and investment promotion forum on November 8, and a dialogue between the ABAC and leaders of member economies on November 10.

At the press conference, Hoang Van Dung, Chairman of the ABAC 2017, briefed initial outcomes of the group’s first meeting, which was held in Thailand from February 19 to 23.

According to Dung, at the meeting aligning with the APEC Year 2017 theme of “Creating a new driving force for a common future”, participants discussed regional economic integration, regional connectivity, sustainable growth, and assistance for micro-, small-, and medium-sized enterprises.

The ABAC also sent recommendations to APEC leaders and held a dialogue with senior officials from 20 member economies on these topics, which was considered the most effective with the highest number of participating APEC member economies to date.

The council will organise further research activities and meetings to send more reports and recommendations to different APEC bodies and leaders till year’s end.

ABAC was set up in 1995, working on reports and recommendations to be sent to APEC leaders in an effort to create a favourable and transparent business and investment environment for the region’s business community.     

Vietnam opens doors for Israeli businesses: Deputy PM

Deputy Prime Minister Vuong Dinh Hue has affirmed that Vietnam always opens doors for Israeli businesses and supports them to access its 90-million strong market, over-600-million ASEAN market, and other countries that have established trade ties with Vietnam.

Addressing a Vietnam-Israel business forum in Hanoi on March 21, the Deputy PM highly valued the special attention that the Israeli Government has paid to the promotion of economic, trade and investment partnership with Vietnam.

He noted that although two-way trade spiraled from 200 million USD in 2010 to over 1.2 billion USD in 2016, the figure has yet to meet expectations.

He suggested that the two sides should foster cooperation in areas of Vietnam’s needs, including farming, breeding, renewable energy, smart power grid, water resource management, e-commerce, cyber security and human resource training.

He also expressed hope that Vietnamese firms will learn from their Israeli peers’ experience, especially in how to develop the world’s leading startup country with modest natural resources.

He declared that the Vietnamese Government commits to working together with the Israel Government in building optimal legal frameworks serving partnerships between the two sides’ business communities.

Hue said he hopes that negotiations for a Vietnam-Israel free trade agreement will be completed in 2018 when the countries celebrate the 25th anniversary of diplomatic ties.

Meanwhile, visiting Israeli President Reuven Rivlin highlighted the significance of bilateral ties with Vietnam in his country’s international integration. 

He stated that Israel is interested in affiliating with Vietnam in various fields, including trade, knowledge-based development, water treatment, irrigation, dairy industry, medical equipment, education, agriculture, fertilizer production, and cyber security.

According to Jonathan Hadar from Israel’s Ministry of Economy and Industry, Israel is becoming a large research and development centre hosting more than 250 multinational groups and firms.

Shraga Brosh, President of the Manufacturers’ Association of Israel, predicted that the two countries will enjoy closer collaboration in hi-tech agriculture, technology transfer, water treatment, mobile network and medical equipment based on the win-win basis.

The same day, a conference themed “Israel – Supplier of high technology for Vietnam’s agriculture development,” was held, with Israeli firms introducing their advanced technology in watering and green house installation.

The events were jointly held by the Vietnam Chamber of Commerce and Industry and the Israeli Embassy in Vietnam during President Reuven Rivlin’s State visit to Vietnam from March 19-25.

RoK firms look for franchise partners in Vietnam

Twelve food and beauty care businesses from the Republic of Korea (RoK) participated in a conference in Ho Chi Minh City on March 21 to look for franchisees.

The event, co-held by Korea Trade – Investment Promotion Agency (KOTRA) and Investment and Trade Promotion Centre of Ho Chi Minh City, aimed to introduce RoK’s leading franchise brands, thus promoting trade exchange and opening up cooperation opportunities between enterprises of the two countries, said Yoon Joo Young, Director of KOTRA in Ho Chi Minh City.

He noted that many RoK firms have reaped success doing business in Ho Chi Minh City, which is the biggest economic hub of Vietnam, hoping that the conference will result in new partnerships.

RoK business representatives said food service and beauty care in Vietnam are expected to rapidly develop in the next ten years, offering great opportunities for them to expand their branch network and promote products to Vietnamese consumers.

Lee Yong Chan, a representative of Yong Woo Dong Fast Food, said a quality management network that ensures food safety, well-trained staff and reasonable franchise fee are strengths of RoK franchise food brands.

Viet Nam, Israel promote economic cooperation     

Deputy Prime Minister Vuong Dinh Hue welcomed Israeli President Reuven Rivlin at a joint business forum yesterday to advocate mutual economic, trade and investment relations between the two nations as part of Rivlin’s state visit to Viet Nam.

The Deputy PM praised Israel’s interest in Viet Nam’s business and economic environment, especially in areas where Israel has an advantage such as high-tech agriculture, animal husbandry, renewable energy and smart grid development.

“There are many things Viet Nam can learn from Israel, and I hope Vietnamese businessmen can use this opportunity to its fullest. Israel as the world best startup nation can offer many lessons on this matter, and your entrepreneurs are welcomed here. Bilateral trade has increased six-fold in six years, but we have only begun to tap its potential together. Viet Nam can offer Israel a gateway to the ASEAN market in areas such as high-tech agriculture, water system management and even online security,” said Hue.

Hue also promised to create favourable conditions for Israeli businesses with a more suitable legal framework to aid the two sides in signing a free trade agreement and create more partnerships.

President Rivlin emphasised the importance of cooperation with Viet Nam and said he expected businesses from Israel to work closely with their Vietnamese counterparts in many areas from education and technology to fertiliser production.

“Viet Nam is a regional power in Asia that can bring added value into partnerships with other countries, and the Vietnamese market economy is growing at a steady pace. Our commercial partnership includes a large variety of goods and services, and there is so much more to do. Our cooporation will let us face global challenges and benefit humanity, but we also need your help on matters such as intellectual property protection and for our free trade agreement to move forward,” said Rivlin.

Viet Nam Chamber of Commerce (VCCI) Chairman, Vu Tien Loc, said he was pleased that the two countries’ leaders and entrepreneurs were coming together for a better future.

“The need for a startup ecosystem in Viet Nam is vital and urgent, as well as investment in the agricultural sector in order to create momentum for development. That is why we need Israel’s help through technological transfer and shared experience,” said Loc.

According to VCCI’s data, as of 2016, total trade turnover between Viet Nam and Israel reached more than US$1.2 billion, with Viet Nam exporting $554 million and importing $683 million.

Israel is ranked 54 out of 116 countries and territories investing in Viet Nam with nine foreign direct capital projects, as well as high-tech agricultural and diary farms.

President Rivlin will visit several key projects of collaboration between Israel and Viet Nam on Thursday and Friday.

One such investment is the VinEco project run by the VinEco company as part of Vingroup Corp. and Israeli firms Netafim and Teshuva Agricultural Projects with an investment of more than $38 million in Tam Dao, Vinh Phuc Province.

The President will also visit a model dairy farm in HCM City in its fifth year of operation, founded by the Israeli Ministry of Foreign Affairs and the HCM City People’s Committee. 

Banks and food drive VN stocks     

Vietnamese shares remained upbeat on Tuesday, driven by banks and food and beverage producers.

The benchmark VN Index on the HCM Stock Exchange inched up 0.2 per cent to close at 716.18 points. The southern market index gained a total of 0.8 per cent in the last two sessions.

The HNX Index on the Ha Noi Stock Exchange advanced 1.2 per cent to finish at 90.13 points, extending its rally for a sixth day with a total growth of 3.6 per cent.

Market trading liquidity increased from Monday’s level with more than 287 million shares being exchanged, worth VND5.32 trillion (US$236.48 million).

The banking sector had the strongest growth yesterday, up an aggregate of 2 per cent with eight of the nine listed banks making gains.

Asia Commercial Bank (ACB), Bank for Investment and Development of Viet Nam (BID) and Eximbank (EIB) jumped 4.6 per cent, 3.9 per cent and 3.5 per cent, respectively.

Other bank stocks rose between 1.1 per cent and 2.3 per cent, including Vietcombank (VCB), MBBank (MBB), Vietinbank (CTG) and Sacombank (STB).

The food and beverage sector was pulled up by good performance by dairy producer Vinamilk (VNM) and consumer goods producer Masan Group (MSN). VNM added 1.3 per cent and MSN increased by 2.6 per cent.

The stock market also recorded good gains in other large-cap companies, such as steel maker Hoa Phat Group (HPG), property developer FLC Group (FLC) and Faros Construction Corp (ROS).

FLC yesterday surged 6.9 per cent to extend its gain to a third day with total growth of 8.1 per cent. FLC in 2016 recorded a post-tax profit of VND987 billion.

On the opposite side, southern brewer Sabeco (SAB), PetroVietnam Gas Corp (GAS) and property developer Vingroup (VIC) weighed on the market.

“The VN Index rose at a slower pace at the end of Tuesday session as investors sought profits when the benchmark was near the resistance range of 718-720 points,” Sai Gon-Ha Noi Securities Corp (SHS) wrote in its report.

The benchmark index will likely rise on Wednesday to test the level of 719 -720 points again, however, sales pressure will increase when the index approaches that range. Investors should be cautious with their investments, SHS said.

Vietnam ready to open doors for Israeli businesses

Deputy Prime Minister Vuong Dinh Hue on March 21 reiterated Vietnam’s readiness to open doors for Israeli businesses and help them access its market at a Vietnam-Israel business forum in Hanoi.

In his speech, the Deputy PM highly appreciated the special attention that the Israeli Government has paid to the promotion of economic, trade and investment partnership with Vietnam.

Despite two-way trade increasing from US$200 million in 2010 to more than US$1.2 billion in 2016, the figure is still far from meeting expectations, he noted.

He underlined for both sides to step up cooperation in fields of Vietnam’s needs, including farming, breeding, renewable energy, smart power grid, water resource management, e-commerce, cyber security and human resource training.

He also expressed hope that Vietnamese businesses will learn from their Israeli peers’ experience, especially in how to develop the world’s leading startup country with modest natural resources.

“The Vietnamese Government pledged to work hand in hand with the Israel Government in building optimal legal frameworks serving partnerships between the two sides’ business communities,” he said.

Hue said he hopes that negotiations for a Vietnam-Israel free trade agreement will be completed in 2018 when the countries celebrate the 25th anniversary of diplomatic ties.

Israeli President Reuven Rivlin highlighted the significance of bilateral ties with Vietnam in his country’s international integration. 

He stated that Israel is interested in affiliating with Vietnam in multiple fields, including trade, knowledge-based development, water treatment, irrigation, dairy industry, medical equipment, education, agriculture, fertilizer production, and cyber security.

According to Jonathan Hadar from Israel’s Ministry of Economy and Industry, Israel is becoming a large research and development centre hosting more than 250 multinational groups and firms.

Shraga Brosh, President of the Manufacturers’ Association of Israel, predicted that the two countries will enjoy closer collaboration in hi-tech agriculture, technology transfer, water treatment, mobile network and medical equipment based on the win-win basis.

A conference themed “Israel – Supplier of high technology for Vietnam’s agriculture development,” held the same day with Israeli businesses introducing their advanced technology in watering and green house installation.

The events were co-hosted by the Vietnam Chamber of Commerce and Industry and the Israeli Embassy in Vietnam during President Reuven Rivlin’s State visit to Vietnam from March 19-25.

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

The Dai Nam Tourist Park is a famous entertainment complex within Vietnam’s entertainment real estate segment. 

Located in Hiep An ward, Thu Dau Mot town, in the southern province of Binh Duong, the park opened in late 2008. 

The huge complex consists of Dai Nam Van Hien Wonderland, Dai Nam Campground, The Open Zoo, and Dai Nam Amusement Park. 

It also has a shopping center, a hotel, a cinema, a theme park, a beach, and many temples, and welcomes about 2 million visitors each year. 

The Park, however, closed from November 10 to December 31, 2014, then reopened in January 2015. 

Mr. Huynh Uy Dung, Chairman and General Director of the Dai Nam Joint Stock Company, the owner of Dai Nam Tourist Park, said the reason was it was “suffering” from the activities of the local government. 

Binh Duong authorities, however, rejected the claims. The Park even offered free admission and slashed ticket prices by 50 per cent prior to the shutdown. 

Shining picture

In 2016, the Dai Nam Joint Stock Company used 60 ha to build an international racecourse at the Dai Nam Tourism Park, with total investment of around $100 million. 

The project includes a horse racing track, a dog racing track, a Go-Kart track, a motorcycle racing track, and a Jet Ski area. 

The horse racing track has a length of approximately 1,600 meters. 

In the first phase, its grandstand will seat 20,000 people and will be upgraded and expanded to 60,000 in the second phase. 

Mr. Dung hopes it will attract about 5 million visitors a year to the tourism park, up from 2 million now. 

The racecourse will have about 300 staff and thousands of studs for breeding.

Sun Group, meanwhile, has become a major investor in Vietnam’s tourism resort sector. 

In January it officially opened the biggest theme park in Southeast Asia, Dragon Park, in Ha Long city, part of the Sun World Ha Long Park entertainment complex. It is the first theme park in Asia to be managed by Spain’s Parques Reunidos, which manages about 60 other parks in 14 countries around the world. 

The Sun Group also held a breaking ground ceremony last September for the Kim Quy (Golden Turtle) Amusement Park in Hanoi, which is inspired by Disneyland. 

A representative from the Sun Group confirmed with VET that the project’s first phase has investment of VND4.6 trillion ($227 million) and will be completed within 18 months. 

The amusement park is located in the capital’s Dong Anh district on an area of 198 ha and will feature an open space for outdoor activities with cutting-edge technology, including a Sun Wheel and hot air balloons. 

It will also comprise an arts area and the Kim Quy cultural village, which will host large-scale arts shows. 

High-tech amusement facilities will also be installed that meet international standards.

The BRG Group and Sanrio Wave Hong Kong, which owns the world-famous Hello Kitty character, signed a memorandum of understanding (MoU) in October 2016 to develop the Hello Kitty Park in Hanoi, the first internationally-branded park in the country. 

The project is expected to begin in the fourth quarter of 2018 but BRG has not released any specific information. 

Hello Kitty Park will provide fans living in Vietnam with the opportunity to experience first-hand the premium quality of the BRG Group’s range of products and services. 

At the signing ceremony, Ms. Nguyen Thi Nga, Chairwoman of the BRG Group, said that its cooperative efforts with Sanrio Wave are directed at the development of a unique, creative entertainment market, meeting demand among children. 

The cooperation is regarded as an important milestone, marking a transformation in Vietnam’s children’s entertainment market.

The Cocobay Da Nang amusement complex was built by the Empire Group and is one of the major projects in the segment. 

Mr. Trinh Viet Hung, Deputy General Director of the Empire Group, told VET that Cocobay has an indoor stage, an outdoor stage, and other entertainment areas. 

“Many parts of the Cocobay project will go into operation in the third quarter of 2017,” he said. 

Potential awakened

Demand for entertainment has increased in recent years as incomes have risen. Entertainment real estate is receiving a lot of attention, with major projects coming from large groups in recent times. 

Ms. Do Thi Thu Hang, Head of Research & Consultancy at Savills Hanoi, said that the development of theme parks in the entertainment real estate segment will become a trend among investors in the near future. 

The potential of the segment comes from the high demand for entertainment among Vietnam’s young population, where more than 60 per cent of people are under 35 years old and most are middle class. 

“Vietnam still lacks amusement parks to meet the needs of its people,” Ms. An said.

A representative from the Sun Group said it believes Vietnam has potential for the development of tourism, entertainment and resorts. 

According to Ms. Hang, with the significant number of tourists the segment can attract, entertainment property may be considered a catalyst, attracting greater demand in other real estate segments such as retail or resorts. 

Hanoi’s population stands at more than 8 million people but it still lacks a large entertainment area, so Chairman of the Hanoi People’s Committee Nguyen Duc Chung said that the capital will build 25 parks, in particular five parks of international standard, in the next five years. 

The People’s Committee has approved a list of 28 parks and entertainment areas seeking investment. 

The Vietnamese Government hopes that Vietnam’s tourism sector will become a spearhead industry by 2020, with international visitors to reach 18 to 20 million and domestic tourists 80 million, bringing in total revenue of $33 to $35 billion. 

There are approximately 5 million Vietnamese travelling abroad each year, spending about $6 billion, according to the Vietnam National Administration of Tourism (VNAT). 

Its figures also show that international arrivals to Vietnam reached 10 million as at the end of 2016, an increase of 25 per cent compared with 2015, together with 62 million domestic tourists. 

Total revenue was VND400 trillion ($18.2 billion). 

Mr. Vu The Binh, Vice Chairman of the Vietnam Tourism Association, predicted that 2017 will see stable development trends if appropriate policies are introduced. “International tourist arrivals will increase 20 per cent this year,” he believes. 

“Travel demand among domestic tourists will also increase because travel has become more common, so there must be major investment in tourism destinations to diversify products and meet the demand of local tourists for new experiences.”

Developers and investors, on the other hand, face many challenges. 

The closure of the Dai Nam Tourist Park reveals the problems investors and developers can have with authorities and policies. 

According to real estate experts, inconsistent and non-specific investment policies are why entertainment real estate has not attracted investors. 

Mr. Tran Ngoc Quang, Secretary General of the Vietnam Real Estate Association (VNREA) said that investors tend to be very selective about entertainment real estate.

The “first generation” of amusement parks in major cities has seen some initial success and attracted large numbers of visitors, according to Ms. Nguyen Hoai An, Director of Research and Consulting Services at CBRE Vietnam. 

There are many theme park projects in operation, such as the West Lake Water Park and Thien Duong Bao Son in Hanoi, the Dam Sen Water Park in Ho Chi Minh City, and Lac Canh Dai Nam in Binh Duong. 

There is also Vinpearl Land Nha Trang and Phu Quoc, as well as Vingroup’s Times City and Royal City urban areas. 

Experts, however, have said that many amusement parks are generally considered to be unappealing.

Mr. Pham Trung Luong, Deputy Director of the Institute for Tourism Development Research (ITDR) under VNAT, said that most entertainment parks in Vietnam lack originality. 

“Most are also in the north and the south, while the central region has great potential but seen little investment,” he said. Similarly, Ms. Hang said that projects have little in the way of innovation to meet demand. 

Investors also needs significant capital to invest in entertainment real estate, she went on. 

“The time needed to recoup investment in the segment is long,” she said. 

“Entertainment real estate projects are also under considerable pressure from similar projects in the region, which have a well-developed entertainment real estate segment.” 

VN Economic Times