BUSINESS IN BRIEF 21/12

Vietnam boasts opportunities to export products to Africa, Middle East

Vietnam has many opportunities to export commodities, particularly in agricultural products and food, to Africa and the Middle East, heard a conference held by the Ministry of Industry and Trade in Ho Chi Minh City on December 19.

The conference aimed to give local exporters an overview of markets, trade policies, business etiquette and export opportunities in African and Middle East nations.

According to Vice Director of the Ministry’s Department of Asian-African Markets Ngo Khai Hoan, 70 countries in Africa and the Middle East have a total population of more than 1.6 billion, a huge market for Vietnamese exporters. Last year, trade between Vietnam and these nations stood at 23.3 billion USD, including 14.9 billion USD worth of exports from Vietnam.

Africa, a market of 1.3 billion people, has a strong demand for agricultural products, said Nguyen Thi Minh Phuong from the department, adding that African countries imported 35 billion USD of farm produce in 2016 and the figure is likely to hit 110 billion USD in 2025.

The high demand for such products has been attributed to the continent’s severe weather conditions weakening local agriculture. Therefore, most local needs for food, particularly rice, aquatic products, coffee, and pepper, are satisfied by imports, she noted.

Trade between Vietnam and the Middle East has also seen considerable rises in recent years. Two-way trade reached 10.9 billion USD in 2016, doubling that of 2011, stated Ly Quoc Thinh from the department. However, Vietnam’s 8.06 billion USD worth of exports to the Middle East last year only accounted for 1 percent of the region’s total foreign trade.

The Middle East nations have a growing demand for imported farm products, especially tropical fruits and aquatic products, alongside consumption goods, footwear and garments-textiles. The region’s imports of foods average 40 billion USD annually and are expected to total 70 billion USD to meet its needs, Thinh said.

Despite high demand for agricultural imports, the African and Middle East markets may pose many challenges to Vietnamese exporters due to cultural differences. They set strict requirements on Halal standards for food as well as in labels and quality control.

In addition, some West African nations have reported more and more trade frauds while the Middle East has suffered political unrest for years.

Central Highlands urged to foster socio-economic development

Central Highlands provinces should continue to effectively carry out the Party and Government’s resolutions and directions on socio-economic development, said Minister of Public Security Senior Lieutenant General To Lam, who doubles as Head of the Steering Committee for the Central Highlands.

He made the statement at a conference held in Gia Nghia town, the Central Highlands province of Dak Nong on December 19 to review the steering committee’s work in 2017.

Lam stressed the key missions of the Central Highlands in the coming time, which include addressing land issues, preventing deforestation, protecting natural resources and ecosystem and promoting sustainable poverty reduction, socio-cultural development and social security.

He asked the regional provinces to pay attention to consolidating the political system at grassroots levels and to carry out the resolution adopted at the fourth plenum of the 12th Party Central Committee, which aims to enhance Party building, and prevent and curb ideological, ethical and lifestyle degradation as well as “self-evolution” and “self-transformation” among party members.

Under the leadership of the Party and Government as well as coordination from local authorities, the steering committee has worked to boost production and improve the livelihoods of ethnic minority groups and to develop the economy, making significant contributions to the development of the Central Highlands region, Lam noted.

In 2017, the region’s Gross Regional Domestic Product (GRDP) picked up 8.09 percent year-on-year to more than 165.4 trillion VND (7.28 billion USD). Meanwhile, per capita income in the year exceeded 41.6 million VND (1,800 USD), up 5.02 percent from 2016.

Agricultural production recovered after droughts, storms and floods thanks to investment in high-tech agriculture. Currently, the region is the country’s key coffee and pepper production zone, with 582,149 hectares and 71,000 hectares respectively, yielding nearly 1.4 million tonnes of coffee bean and more than 120,800 tonnes of pepper.

The region’s export revenue topped 2.66 billion USD in 2017, up 22.71 percent from 2016.

Thanks to renovation in administrative procedures and market support, the Central Highland provinces have seen an increase in the number of businesses. It is home to 23,330 enterprises, 14.9 percent more than in 2016.

The provinces, including Dak Nong, Dak Lak, Giai Lai, Kon Tum and Lam Dong, have attracted 235 domestic projects worth 103.3 trillion VND (4.55 billion USD) and nine foreign direct investment projects valued at 109.9 million USD.

Saigon Autotech 2018 set for HCM City

The 14th Saigon Autotech & Accessories Show 2018 will take place at the Saigon Exhibition and Convention Centre in HCM City from May 24 to 27.

The event will have 500 booths from 300 domestic and foreign enterprises and is set to attract more than 15,000 visitors.

The exhibitors will display automobiles, motorcycles, electric and sport bikes, accessories and spare parts, car maintenance services, new-tech engines and smart parking solutions.

According to the organising committee, the ASEAN Free Trade Agreement coming into effect in 2018 will be a big challenge for the automobile and motorbike industry of Viet Nam when import tax for cars and motorcycle spare parts among ASEAN countries is cut to zero.

This will put supporting industries in Viet Nam under pressure from countries with developed supporting industries such as Thailand and Indonesia.

With the message ‘Accessories for the future’, Saigon Autotech 2018 aims to promote technology and trade exchange to develop a market of spare parts and accessories in the region.

To share the difficulties that small and medium-sized enterprises are facing in investing in production and market development, Saigon Autotech will apply support policies in prices, positions and other incentives to encourage Vietnamese enterprises to participate in the event.

In addition, Saigon Autotech will expand its dealer network in Germany, India, Thailand, Taiwan and China to bring the best products to the show.

The event also includes trade connectivity events to increase efficiency among domestic and foreign partners.

The organising committee has also associated with forums and clubs to hold events related to the supporting industry.

Held since 2006, Saigon Autotech has increased its scale from 5-10 per cent per year in terms of both exhibition area and the number of participating businesses.

The exhibition is organised by Asia Trade Fair and Business Promotion JSC under the sponsorship of Viet Nam Chamber of Commerce and Industry and other ministries and departments.

Navigos launches 1st career platform for top executives

Leading recruitment company Navigos Group on Monday launched PRIMUS, the first career platform meant for candidates looking for managerial jobs with a minimum salary of US$3,000.

“Top 1” candidates can register with PRIMUS (www.primus.vn), and those who provide full profiles, which are verified, will be able to access all placements posted on the site.

When they want to apply for a job, PRIMUS will use a “matching score” tool to assess their suitability in terms of experience, skills and position.

Applicants will also get help from professional recruitment consultants at PRIMUS to connect with employers.

Currently, job searches and applications are free.

“Currently, we are having more than 4,000 high-level candidates, five verified recruitment agencies and 35 recruitment consultants,” Gaku Echizenya, CEO of Navigos Group, said.

“We have about 200 vacancies with a minimum salary of $3,000, of which 60 per cent are at a director level, 18 per cent are at C-level and 90 per cent of the positions are provided with full information.”

Navigos also has online recruitment portal VietnamWorks and executive search firm Navigos Search.

Bkav inks agreement with technology university

The Bkav Technology Group on Tuesday signed a co-operation agreement on developing scientific technology with Ha Noi University of Technology (HUT)’s School of Electronics and Telecommunication (SET).

According to representatives of Bkav, for many years, besides the field of network security, the company has expanded its field research and production of high-tech products, such as SmartHome and Smartphone.

Bkav’s CEO Nguyen Tu Quang said HUT, with a full range of research and training such as mathematics, physics, mechanics and electronics, as well as telecommunications, information technology and automation, is a significant partner for any technology enterprise. Especially, to produce a phone, such as a Bphone, Bkav will need to use the knowledge of most of these science and technology fields.

In the world, the cooperation model among research institutes, universities and enterprises is inspired very early and always effective. Therefore, Bkav’s representative confirmed that in addition to signing with the SET, the company will continue to promote co-operation with other potential units of the HUT to be ready for technology breakthroughs that can be applied to smartphones in the future, competing with global brands.

Nguyen Huu Thanh, director of SET, said the collaboration with external companies is part of HUT’s strategy to improve the capacity of science and technology. This co-operation is the beginning of a partnership that will bring Bkav’s products together with better technologies to Vietnamese consumers, he added.

In August 2017, Bkav officially introduced the second version of Bphone, the first made-in-Viet Nam smartphone. The phone works with Qualcomm Snapdragon 625, a chip popular around the world for its efficient power management.

IFC’s lending package helps Vietnamese SMEs

The International Finance Corporation (IFC) announced on December 19 a successful syndicated senior loan package transfer of 110 million USD to An Binh Commercial Joint Stock Bank (ABBANK) as a joint effort to boost the latter’s small and medium enterprises (SMEs) lending.

The loan is the first phase of a 150 million USD financing package from IFC and Goldman Sachs for ABBANK, with more than one third of the said funding intended for women-owned SMEs.

The December 19 statement from ABBANK indicated its aim to triple outstanding SME portfolio and quadruple lending to women-owned SMEs, which are expected to go beyond 1 billion USD by 2021.

IFC disclosed that out of the total 150 million USD financing package, it would contribute 40 million USD from its own account, 70 million USD from Industrial and Commercial Bank of China Limited (ICBC), Bangkok Bank Public Company Limited and Maybank International Ltd and 40 million USD from two other international lenders to be decided by 2018.

At least 45 million USD will be exclusively allocated to women-owned SMEs, Kyle Kelhofer, IFC country manager for Vietnam, Cambodia and Laos, said.

“This project will promote women-owned SMEs as a viable business opportunity when provided with tailored products, appropriate offerings and right marketing. Subsequently, it will support the growth of women-owned SMEs, which will in turn create jobs and drive wage growth”, he added.

ABBANK confirmed it would make use of the said much-needed syndicated funding from IFC and partner banks.

Long-term funding for SMEs is going to become critical in Vietnam, as SMEs account for more than 98 percent of the country’s businesses and 50 percent of employment, according to IFC’s research.

However, IFC also found that only 30 percent of registered SMEs have access to formal financial services, which is even more difficult for women-owned SMEs, with an estimated credit gap of 1.2 billion USD per annum.

The loan scheme was launched in cooperation with the Goldman Sachs 10,000 Women initiative, a global finance facility since 2014 to enable access to capital to more women entrepreneurs.

IFC became ABBANK’s foreign investor with 10 percent equity stake in 2013.

India firms seek investment opportunity in Binh Duong

A delegation from the Confederation of Indian Industry (CII) led by First Secretary of the Indian Embassy in Vietnam Rafiv Bodwade has paid a field trip to the southern province of Binh Duong to seek investment opportunities in the locality.

During a working session with representatives from the provincial People’s Committee on December 19, Rafiv Bodwade said Indian firms have noticed many investment opportunities in Vietnam, especially in Binh Duong – an industrial hub located in the southern key economic area.

Indian enterprises give priorities to investing in the fields of agriculture, pharmaceutics and renewable energy, he stressed.

Vice Chairman of the provincial People’s Committee Tran Thanh Liem briefed the guests on the locality’s socio-economic development, noting that Binh Duong has 29 industrial parks and eight industrial clusters with a total area of over 10,000 ha.

The locality has so far attracted 28.5 billion USD in foreign direct investment (FDI) from 3,360 enterprises, but Indian-run projects number only five with a total investment of 170 million USD, he said.

Binh Duong is calling for investment in projects on large scale which use advanced technologies with less labour and create high added-value products, he added.

India has 134 investment projects worth 1.1 billion USD in Vietnam. Two-way trade in 2017 hit over 10 billion USD, year-on-year increase of 29 percent. The two nations aim to lift their trade to 15 billion USD by 2020.

Laos becomes magnet for Vietnamese investment

Vietnamese enterprises have reaped successes in Laos thanks to sound business opportunities, market scale and operation quality in the neighbouring country.

Laos has licensed 423 projects invested by Vietnamese firms worth more than 5 billion USD, mostly in hydropower, mining, transport, industrial tree plantation and services, according to the Ministry of Planning and Investment.

Viettel Global Investment JSC, a subsidiary of the military-run telecom Viettel Group, earned revenue of 13 trillion VND (571.9 million USD) in the first nine months of 2017, up 19 percent from the same period last year.

The Unitel network of Star Telecom, a joint venture between Viettel Global and Lao Asia Telecom, significantly contributed to the results by holding 50 percent of the Lao telecommunication market share. Unitel has 2.8 million subscribers and is aiming for 10 percent growth in revenue to 175 million USD in 2017.

Also, Hoang Anh Gia Lai Group has invested in rubber tree and oil palm plantation in Laos. It also put Attapeu airport into operation in 2015 and has splashed out 80 million USD on the construction of Nong Khang Airport in Houaphanh province.

Other large-scale projects developed by Vietnamese businesses are Xekaman 1 and 3 hydropower plant projects, power transmission lines from Xekaman to Vietnam’s Pleiku province and a 522 million USD potassium chloride salt project.

The projects have played an important role in the development of both countries. The investments are expected to bring 350-400 million USD to the Lao budget and create 40,000 jobs.

Agriculture, hydropower plant and telecommunications are typical Vietnamese investments in Laos. However, this is changing.

Laos has welcomed an increasing capital amount from Vietnamese companies in hospitality. BIM Group is one example. It opened the first five-star hotel in Laos, the Crowne Plaza Vientiane, in April 2017. The 20,000 square metre hotel has 200 rooms and is located inside the Royal Square building.

The visit to Vietnam made by General Secretary of the Lao People’s Revolutionary Party and President of Laos Bounnhang Vorachith from December 19-21 will give a momentum for Vietnam-Laos ties in both diplomatic and economic affairs, opening new opportunities for Vietnamese investment in this market.

Kuwait Fund loan for coastal infrastructure development

The Ministry of Finance and the Kuwait Fund for Arab Economic Development (KFED) signed a loan agreement on December 19 to develop infrastructure in coastal areas in Thai Thuy district of the northern province of Thai Binh.

Deputy Minister of Finance Tran Xuan Ha said the over 9-million-USD loan is significant to Thai Binh – one of the localities in Vietnam bearing the most brunt of climate change.

The project is expected to help the province increase business production, he added.

Vietnam pledged to direct relevant ministries and management agencies to make the most efficient use of the loan, he affirmed.

Deputy Director General at KFED Hisham Al-Waqayan said the Kuwait Fund is willing to sponsor development projects in Vietnam.

The two sides are discussing to sign other projects in the coming time, including one in the northern mountainous province of Ha Giang, which aims to improve local living standards.

To date, Kuwait Fund has supported loans for Vietnam to carry out 14 projects worth nearly 169 million USD, focusing on improving rural infrastructure for poor provinces such as roads and irrigation networks.

Vietjet launches Bangkok – Da Lat route

The low-cost carrier Vietjet Air on December 18 launched its newest route from Bangkok in Thailand to Da Lat city in the Central Highlands province of Lam Dong.

The event was witnessed by representatives from the Ministry of Culture, Sport and Tourism, Ministry of Transport, Aviation Administration of Vietnam and related departments in Vietnam and Thailand.

Speaking at the ceremony, Vietjet Vice President Nguyen Thi Thuy Binh said the new route is part of the airline’s efforts to enhance bilateral ties between Vietnam and Thailand in trade, investment, aviation transport and tourism.

With the convenient flight schedule, high-quality services, attractive low-fare tickets, the route will meet the transportation and travel demands of two cities’ people, contribute to promoting trade and integration in the region, she said.

The Da Lat – Bangkok route operates a return flight every Monday, Wednesday, Friday, Sunday with around one hours and fourty five minutes per leg. Flights depart from Da Lat at 12:55 and arrive in Bangkok at 14:30 (local time). Return flights take off at 10:30 in Bangkok (local time) and land in Da Lat at 12:15.

Vietjet is the first carrier to operate the Bangkok-Da Lat route following its launch of two routes from Ho Chi Minh City to Chiang Mai and Phuket last week. That increases the airline’s total routes from Vietnam to Thailand to six.

Vientiane forum seeks to boost Vietnam-Laos trade

The ministries of industry and trade of Vietnam and Laos co-organised a forum in Vientiane on December 19 to seek ways to improve bilateral trade, which is estimated at 900 million USD in 2017, up 10 percent year on year.

Vietnamese Deputy Minister of Industry and Trade Tran Quoc Khanh said after a period of decline in 2015-2016, Vietnam-Laos trade regained momentum this year and met the target of 10-percent increase as set by leaders of the two countries.

Lao Deputy Minister of Industry and Trade Bounmy Manivong said the forum aims to provide a chance for the two sides to review relevant documents reached during the past time and look for measures to remove outstanding problems and obstacles in bilateral trade and investment cooperation.

Speakers presented their assessments about the current trade relations, pinpointed problems in trade and trade-related investment activities between the two countries, particularly those related to mechanisms and administrative procedures.

Current bilateral cooperative mechanisms also came under spotlight, with the aim of improving them to support the business communities of both countries to enhance production and export capacity.

Participants compared notes on the good and bad points of the One stop shop model at border gates with a view to facilitating border trade.

Another issue of interest on the agenda was the direction and solutions for the trade of electricity between Vietnam and Laos.

The forum attracted the participation of industry and trade officials of the two countries, and representatives from Vietnamese and Lao economic groups and firms.

HCM City official welcomes Indian business delegation

Standing Vice Chairman of Ho Chi Minh City People’s Committee Le Thanh Liem on December 19 hosted an Indian business delegation led by Executive Director of Tata Sons in Vietnam Indronil Sengupta.

Liem appreciated the initiative on organising a Vietnam-India trade forum on the occasion of the Indian business delegation’s working visit to Vietnam.

He noted that there are currently over 60 investment projects of India worth 60-70 million USD in Ho Chi Minh City, and pledged to facilitate India’s investment in the city.

The official said the areas of interest for Indian firms such as IT, hi-tech production, pharmaceuticals, chemicals and processing are in line with HCM City’s development orientation. He suggested the firms study the city’s lists of projects inviting investment for suitable opportunities.

Indronil Sengupta said business members of the India Industrial Federation are looking for opportunities in biological technology, pharmaceuticals and energy, and possibly also in HCM City’s smart city plan.

According to him, Tata Sons is considering joining the automobile and coffee industry in Vietnam and the development of solar energy in some southern provinces in the country.

Indian Consul General in HCM City Srikar Reddy said India has 164 investment projects in Vietnam, with 61 in HCM City, with total investment capital of 755 million USD.

Deputy Minister of Finance Tran Xuan Ha said the over 9-million-USD loan is significant to Thai Binh – one of the localities in Vietnam bearing the most brunt of climate change.

The project is expected to help the province increase business production, he added.

Vietnam pledged to direct relevant ministries and management agencies to make the most efficient use of the loan, he affirmed.

Deputy Director General at KFED Hisham Al-Waqayan said the Kuwait Fund is willing to sponsor development projects in Vietnam.

The two sides are discussing to sign other projects in the coming time, including one in the northern mountainous province of Ha Giang, which aims to improve local living standards.

Imported energy will increase in the future

The trend on increasing imported energy in the next few years is causing concerns for the domestic energy market as well as socioeconomic development.

Speaking at the seminar on December 14, titled “Energy Economics and Prospects,” the Vietnam Energy Association (VEA)’s vice chairman Nguyen Van Vy said that the trend of increasing energy imports causes many concerns, including rising costs and the country becoming dependent on foreign energy markets.

According to VEA, the rate of imported energy will increase in the next few years. Specifically, the rate of imported energy will increase by about 10 per cent in 2018. This figure in 2020 will be over 20 per cent.

Vy also added, “Domestic gas resources are being depleted, while the demand for gas keeps increasing, leading to a rising demand for imported gas energy.”

According to Vietnam’s renewable energy development strategy to 2030, with vision to 2050 approved by the prime minister, energy imports in 2015 were 2.7 million tonnes of oil equivalent (TOE), accounting for 3.5 per cent of total primary energy demand.This figure will increase to about 47 million TOE and 24.3 per cent by 2030.

In the absence of renewable energy development, energy imports will be very high. Imported energy in 2030 will be 78.7 million TOE, accounting for 41.1 per cent of the total primary energy demand. This figure will be 129 million TOE in 2050, accounting for 41.2 per cent of the total primary energy demand.

Besides, the seminar also discussed the energy management of Vietnam’s industrial enterprises. Speaking at the seminar, Duong Trung Kien, Electric Power University’s dean of Energy Management, revealed that domestic industrial enterprises’ energy management remains at an average level, despite the law on energy saving and efficiency having been in effect for over six years.

Zuellig Pharma Vietnam signs co-operation on national vaccine project

Zuellig Pharma Vietnam Ltd. has entered into a Memorandum of Understanding with the National Centre for Control of Vaccines and Biologicals (NICVB) and the National Institute of Hygiene and Epidemiology (NIHE) for cold chain storage management and safeguarding the quality of vaccines.

Titled “Project Support: Enhancement of Cold Chain Storage During Vaccine Transportation under the Expanded Immunisation Programme in Vietnam,” this is a two-year project from 2018 to 2020 to enhance cold chain storage during the transportation of vaccines.

The Expanded Immunisation Programme, administered by the Ministry of Health since 1981, has been widely regarded as one of the most important national public health programmes in Vietnam, benefiting millions of women and children. One of the key elements ensuring the success of the programme, as well as vaccine efficacy and safety for users, is that it must meet requirements in cold chain storage.

To maintain the efficacy and safety of vaccines, it is necessary to keep them at a constant temperature between 2-8°C. Any break in this cold chain, from production to storage, transportation or usage could damage the integrity of the vaccine, resulting in reduced efficacy and safety in treatment.

The objective of the project is to ensure the efficacy and safety of vaccines and biologicals which must be stored in a cold chain during transportation to the immunisation locations in Vietnam. In furtherance of this objective, Zuellig Pharma Vietnam will closely collaborate with NICVB and NIHE to assess existing cold chain transportation to provincial preventative medical centres.

The firm will donate packaging technology to extend the cold chain in the form of eZCooler units, which will improve Vietnam’s cold chain capabilities as well as ensure safe delivery to remote areas. Zuellig Pharma Vietnam will also provide training for NICVB and NIHE on good international practices regarding cold chain management and the use of eZCooler units.

Robert Kruit, chief executive of Zuellig Pharma Vietnam, said, “The way vaccines are handled and managed is critical to the efficacy and safety of vaccines for Vietnamese people. We have been entrusted with handling drugs and vaccines from international and local pharmaceutical companies around the world for almost 100 years in Asia and 18 years in Vietnam. We are very proud to be a part of this project with NICVB and NIHE and look forward to closely collaborate with the two institutes for years to come.”

The MoU that served as the initiation for the project with a total sponsorship value of $600,000 was signed by NICVB director Doan Huu Thien and NIHE director Dang Duc Anh and Kruit.

Mobile World officially acquires Phuc An Khang Pharmacy

Tran Kinh Doanh, a member of the Mobile World Group (MWG) Board of Directors, confirmed that the company has acquired Phuc An Khang Pharmacy to officially set foot in the pharmaceutical sector.

The business deal has been completed and the partnership has launched a new brand name—An Khang Pharmacy.

This is the first time a representative of MWG confirmed the acquisition of the Phuc An Khang pharmacy chain. Earlier, there were wide-scale speculations and some stock companies have produced analysis of this possibility.

Phuc An Khang was established in May 2006 with a total of 14 stores in Ho Chi Minh City. Meanwhile MWG planned to jump into pharmaceutical retail at the beginning of this year and expected to expand to 50 or 60 stores next year.

Also, at this moment, MWG has been acquiring shares of Tran Anh Group (TAG). Doanh said that MWG has started to take over the business, IT system, and accounting departments, and sent key personage to manage TAG. The total M&A funds of MWG reached VND2,500 billion ($110 million).

Vietnam, RoK trade grows sharply on FTA

The Free Trade Agreement between Vietnam and the Republic of Korea (RoK), which came into effect two years ago, has served as a catalyst for the two countries’ trade growth.

Bilateral trade surged 43 percent year on year to 58.8 billion USD during January-November.

The RoK’s Ministry of Trade, Industry and Energy said on December 19 that two-way trade has increased in three consecutive years and Vietnam has become fourth largest trade partner of the RoK.

In the first 11 months of the year, the RoK’s exports to the Southeast Asian country soared 48.4 percent from the same time last year to 43.7 billion USD on semiconductors, displays, wireless communication equipment and electronics parts. With such result, Korean products made up 22.3 percent in the Vietnamese market, just following China.

Meanwhile, imports from Vietnam rose 29.2 percent to 14.8 billion USD in the reviewed time, mostly in wireless communication equipment, clothing, and other daily necessities.

The ministry said that RoK enterprises poured 54.5 billion USD into Vietnam in the first half of the year, making it become the largest source of foreign direct investment of Vietnam.

More than 5,000 RoK companies are running business in Vietnam, including Samsung Electronics Co., LG Electronics Inc. and Doosan Engineering & Construction Co. They chose Vietnam to take advantage of cheap labour and a growing number of middle-class consumers in the fast-growing economy.

Ca Mau: Work starts on construction of five-star hotel complex

Construction of the five-star Sao Mai international hotel complex began at Nhut Hong new urban area, city of Ca Mau, the same name province, on December 19.

The 23-storey hotel is invested by the Sao Mai Group at total cost of more than 700 billion VND (30.87 million USD). It has a total area of 46,000 square metres with 200 rooms and five-star services.

Once operational in 2019, the complex is expected to cast a new look for the region, create jobs for local labourers and meet the demand for high-end accommodation of tourists and local residents.

At the ground-breaking ceremony, Chairman of the group Le Thanh Thuan pledged to carry out the project in line with set plan and ensure labour safety as committed to local authorities.

Investors’ recommendations welcomed to improve business climate: PM

The government of Vietnam welcomes all feedback and recommendations of domestic and foreign investors to improve local policies for better business climate, said Prime Minister Nguyen Xuan Phuc on December 18.

He made the remarks at a meeting with representatives of local and foreign enterprises and investors in Cao Lanh City, the Mekong Delta province of Dong Thap where he attended the Expanding Market for Fruits – Vegetables and Improving Logistics for Agriculture and Rural Development Forum shortly before.

Meanwhile, the firms and investors gathered in Dong Thap for the forum and the province’s 2017 investment promotion conference on December 19.

Vietnam’s business environment has been improved but legal shortcomings have remained, requiring continued amendments, he said.

The PM noted that he, the government and relevant agencies always look forward to receiving feedback and recommendations from investors both at home and abroad to improve the legal framework in this area.

Phuc welcomed all ideas and business plans firms and investors proposed during the meeting and at the same time, urged them to ensure product safety and quality, protect the environment and have plans to encourage made-in-Vietnam goods.

According to PM Phuc, more than 24,000 foreign projects, worth over US$320 billion, are operating in Vietnam. This year, the country’s FDI inflows hit a record of US$35 billion.

Several leaders of foreign firms, such as Chairman and President of the China-based Greenland Holdings Group Zhang Yuliang, Central Group Vietnam CEO Philippe Broianigo and Richard Courey, President and CEO of the Vision Transportation Group from Canada, voiced their hope to expand business in Vietnam in multiple areas and informed the PM that they will soon carry out projects in Vietnam, including the Mekong Delta.

GENCO 1’s 11-month hydropower output surpasses year’s target

The Generation Corporation 1 (GENCO 1) of the Electricity of Vietnam (EVN) produced more than 9 billion kWh of hydropower in the first 11 months of 2017, 40% higher than this year’s target.

Meanwhile, thermal power output approximated 17 billion kWh, equivalent to 70% of the target, the firm said, noting that over 26 billion kWh was produced in total during the period, reaching 86% of the 2017 plan.

It added thanks to the big volume of water flowing into hydropower reservoirs, hydropower output by the end of November was 3 billion kWh higher than the plan for 2017.

In November alone, GENCO 1 turned out over 2.28 billion kWh of electricity, representing 90% of the month’s target and rising by 12% from a year earlier.

The company earned more than VND2.7 billion from electricity sales during the month, including nearly VND2.2 billion thermal power.

It will work to manufacture more than 2.1 billion kWh, including 429 million kWh of hydropower and 1.68 billion kWh of thermal power, in December to fulfil this year’s task, the corporation added.

Vietnamese orchid farmer thrives on arid land

A young local farmer has created a thriving orchid business in one of the driest provinces in Vietnam.

The brave 33-year-old, Phan Thanh Sang, has created new career paths for people in Ninh Thuan Province, on the south-central coast of Vietnam.

The mountainous area of land he calls his own is half-covered by forest, which makes cultivation challenging.

In addition, the province is considered one of the most arid areas in Vietnam, experiencing several droughts per year, making it far from the best place to start an orchid farm.

However, despite the conditions, Sang has not been discouraged from investing in the area and making a change.

Sang’s business – YSA Orchid Farm – currently consists of three high-tech farms with a total land area of more than 10 hectares, and is valued at VND70 billion (US$3 million).

Two of the farms are located in Lam Dong Province, however, the most notable one is in Ninh Thuan.

“I developed the orchid plantation in Ninh Thuan to create new jobs for people in the area. Each area has its own advantages. I just wanted to provide people there [Ninh Thuan] with a new approach, new opportunities,” the pioneer explained.

In Ninh Thuan, Sang chose to plant moth orchids.

Every nine to 12 months, his orchids are taken to Da Lat City in Lam Dong, in the Central Highlands region of Vietnam, where it is cold enough for orchids to flourish.

In 2006, when Sang was still a university student, he bought a small orchid garden and began gaining experience.

Upon his graduation from the agriculture faculty of Da Lat University, Sang borrowed VND200 million (US$8,780) from banks to fund his ambitious startup.

He began by investing in a laboratory to breed new orchids.

“I took it [the business] step by step, all by myself so as to develop sustainably. The places where I grew the flowers, I allowed people to come and learn,” the YSA Orchid Farm owner said.

“If one takes the right path, has the right approach, and is determined and hardworking, they will succeed. It is not about sitting around and waiting for projects to come to you.”

Annually, YSA Orchid Farm provides the market with thousands of orchids and has annual revenue of over VND20 billion (US$878,000), with more than 60 employees.

As a delegate of the Da Lat Flower Association, Sang was honored to participate in the Eleventh National Ho Chi Minh Communist Youth Union Congress that began on December 10 in Hanoi.

But Sang was not there just as a delegate.

Sang had arrived in Hanoi a few days in advance along with 600 moth orchid flower pots, 1,000 branches of monkara orchids and other decorations representative of Ninh Thuan to decorate the event.

The 33-year-old has become well-known for his innovative and pioneering approach.

Heeding Prime Minister Nguyen Xuan Phuc’s suggestion that “every young person is a startup warrior,” Sang is one of those living up to the idea, and even though his success is already undeniable, the young founder has more goals.

“I have a successful startup, but I still have to reach out to foreign countries, or at least spread the startup spirit to the local community so that other people can accomplish what I have,” he said.

Lilama to withdraw 15% capital at its affiliate

The Viet Nam Construction and Machinery Installation Corp (Lilama) will withdraw 15 per cent of its capital at its affiliate, Lilama 45-1 Joint Stock Company.

The process will begin from now until the end of the first quarter of 2018. Lilama, under the Ministry of Construction, will auction 720,000 shares of Lilama 45-1 at an initial offering price of VND10,987 (44 US cents) per share. The offering of shares will be held at Sai Gon-Ha Noi Securities Joint Stock Company (SHS).

Lilama currently holds a total of 2.4 million shares at Lilama 45-1, equivalent to 51 per cent of the company’s charter capital. Therefore, after the divestment, Lilama will reduce its ownership to 36 per cent.

The divestment is scheduled to be implemented in accordance with Lilama’s project on restructuring and enhancing management capacity during the period of 2016-25.

Ha Noi prepares land for developing resettlement apartments

Ha Noi said it has prepared 28.5ha of land for developers to build 27 resettlement housing projects with an estimated 19,800 apartment units.

The capital city recently submitted a document to the Government Office to clarify its proposed mechanisms for firms to develop resettlement apartments in the capital city.

Under the proposals, Ha Noi will prepare land and select developers with adequate capacity to develop these resettlement housing projects. An important criterion for developers is that they must promise not to calculate loan costs in the apartment price.

The developers will be allowed to make a profit of 10 per cent or sell 20 per cent of the apartments to the market.

After nine to 12 months, if the city failed to introduce home buyers, the developers will be allowed to sell the apartments to recover their investment.

It was estimated that the city needed more than 22,130 apartments by 2020 to meet the resettlement demand for site clearance to implement infrastructure development projects,

Currently, some 4,500 resettlement apartments were being developed and the city needed another 17,600 units.

The capital city said the new mechanisms would encourage developers to invest in resettlement housing projects.

Under the current mechanisms, the Government will have to spend money to develop or buy housing projects for resettlement. After that, the resettlement housing projects will be sold to citizens. The capital city said this mechanism was not efficient due to the tight budget.

Vi Viet records 2 million users

Vi Viet e-wallet, a LienVietPostBank’s online banking services recorded more than two million customers and a network of some 16,000 transaction points as of Friday after over a year of launching.

Nguyen Dinh Thang, vice chairman of the bank’s management board told a press meeting in Ha Noi on Friday that it is expected that Vi Viet would reach 3.5 million users and 30,000 transaction points next year.

Thang said Vi Viet is a non-cash payment online tool via a mobile application or website viviet.vn that helps customers pay their bills and shop online. From the beginning of next year, customers could use Vi Viet for implementation of online banking services such as deposit, account query, account statement, settlement of saving accounts and consumer lending.

“LienVietPostBank has been building Vi Viet to gradually become a digital banking outlet. In addition to modernising core-banking, applying advanced management software and developing e-banking, Vi Viet would contribute to realising the bank’s target of becoming one of the leading retail banks in Viet Nam – a bank for everybody,” he added.

The bank has also implemented new strategy by expanding its network and providing retail banking products for people, especially in rural areas nationwide.

Earlier, Vi Viet had been the first bank in Viet Nam receiving the Asia Pacific ICT Alliance Awards (APICTA Awards) which is an international awards programme to increase ICT awareness in the community and assist in bridging the digital divide. APICTA has been considered as the OSCAR award in the ICT sector in the Asia Pacific region. Vi Viet was awarded with second prize for Financial Industry Application.

On Thursday, Japanese Mitsui Knowledge Industry Company and Doreming Company signed an agreement with LienVietPostBank to use Vi Viet for their salary payment and management solution for both Vietnamese and Japanese firms in 2018.

In the first 11 months of the year, LienVietPostBank’s pre-tax profit surpass its whole year’s target to reach VND1.7 trillion (US$74.8 million). Its total capital mobilisation was VND141 trillion while total assets were VND154 trillion. The bank’s total outstanding loans were VNĐ98 trillion and charter capital VND6.46 trillion.

LienVietPostBank set a target to increase its charter capital to VND7.5 trillion by the beginning of 2018 and increasing the divided rate from 12 per cent in 2017 to 15 per cent in 2018.

VN, Japanese firms cooperate in Waguy cow farming

Huy Long An Limited Company and Japan’s Sawai Ranch on Sunday signed an agreement for cooperation in Japanese-style Waguy cow farming in the southern province of Long An’s Duc Hue District.

This is the first time Viet Nam and Japan have cooperated in raising Waguy cow.

Waguy cows would be raised on farms of Huy Long An company following strict process with supervision from Japanese experts to ensure quality.

Waguy beef would be partly sold in the domestic market and partly exported to Japan.

Vo Quang Huy, director of the Huy Long An Limited Company, said the company currently owns one of the largest cow raising farms in Viet Nam with the capacity to raise 30,000 cows.

It was estimated that each Waguy cow could be worth around US$40,000.

Sawai Ranch is experienced in raising Waguy cow under the brand OHMI – one of the three famous Japanese beef brands.

Le Van Hoang, director of Long An Province’s Department of Agriculture and Rural Development, said the province was promoting the application of high technologies in agricultural development.

Cambodia, Laos, Vietnam boost trade, investment

The 11th Investment-Trade and Tourism Promotion Forum of the Cambodia-Laos-Vietnam (CLV) Development Triangle took place in the southern province of Binh Phuoc on December 18.

Speaking at the event, head of the Ministry of Industry and Trade’s Foreign Investment Agency Do Nhat Hoang said Vietnam has so far invested 3.6 billion USD in 113 projects in the area, including 1.6 billion USD in 48 projects in Cambodia and nearly 2 billion USD in 65 projects in Laos, mostly in agriculture and rubber production.

Hoang asked ministries and agencies concerned of the three countries to promptly refine legal regulations on business and investment, and procedures regarding taxation, customs and labour, and prioritise transport infrastructure investment.

A Lao representative said the forum offers a chance to boost economic growth and infrastructure development of each country and the region as a whole.

He added two-way trade between Laos and Vietnam topped 800 million USD last year and surpassed 500 million USD in the first half this year, up 14 percent annually. Meanwhile, trade between Laos and Cambodia has also prospered.

Vice Chairman of the Binh Phuoc provincial People’s Committee Huynh Anh Minh said local investors poured 148 million USD into the development triangle, predominantly in rubber processing and cashew cultivation.

Representatives from 13 regional provinces introduced potential and business opportunities to investors. They suggested paying attention to training of tour guides with good foreign language command and building the border area into a friendly destination.

A representative from the Council for the Development of Cambodia revealed that agricultural investors in Cambodia are exempt from tax for nine years since the first yield.

ADB helps boost economic growth in north central region

The Asian Development Bank’s (ADB) Board of Directors has approved loans totaling 149 million USD to help improve basic infrastructure and promote inclusive and sustainable economic growth that will benefit over 1 million people in four provinces in the north central coastal region of Vietnam.

ADB’s assistance for the Basic Infrastructure for Inclusive Growth in the North Central Provinces Sector Project includes a regular loan of 52 million USD and a concessional loan worth 97 million USD. Both loans will be financed from the ordinary capital resources where most of ADB’s lending come from.

The total cost of the project is 203.52 million USD, with the Government of Vietnam contributing 54.52 million USD.

According to Eric Sidgwick, ADB’s Country Director for Vietnam, Vietnam has been one of the fastest growing economies in the world since 2010, with an annual growth average of about 6 percent as of 2015.

But growth has not been significantly reflected in rural areas, particularly in the north central provinces, he noted.

“ADB’s assistance will help promote inclusive growth and bridge the development gap by integrating cities and the rural areas in the region,” he said.

Economic development in the project provinces, namely Ha Tinh, Nghe An, Quang Binh, and Quang Tri, has been constrained by the fragmented coverage of basic infrastructure, with the 2015 poverty rate reaching 13 percent compared to the 7 percent national average.

Moreover, the provinces are extremely vulnerable to natural disasters and are predicted to have the country’s highest increase in annual mean temperature at 1.7 percent and annual rainfall shooting up by 20 percent

To address these issues, the project will improve connectivity among the provinces by upgrading and constructing about 214 kilometers of climate-resilient provincial and district roads, which will benefit more than 900,000 people.

It will boost business development through the construction and upgrading of rural water supply, flood protection, irrigation, and port services, while improving the capacity of the provincial governments, particularly in public asset management.

The project is expected to be completed by the first quarter of 2023.

Meanwhile, thermal power output approximated 17 billion kWh, equivalent to 70 percent of the target, the firm said, noting that over 26 billion kWh was produced in total during the period, reaching 86 percent of the 2017 plan.

It added thanks to the big volume of water flowing into hydropower reservoirs, hydropower output by the end of November was 3 billion kWh higher than the plan for 2017.

In November alone, GENCO 1 turned out over 2.28 billion kWh of electricity, representing 90 percent of the month’s target and rising by 12 percent from a year earlier.

The company earned more than 2.7 billion VND from electricity sales during the month, including nearly 2.2 billion VND thermal power.

It will work to manufacture more than 2.1 billion kWh, including 429 million kWh of hydropower and 1.68 billion kWh of thermal power, in December to fulfil this year’s task, the corporation added.

Central Highlands provinces post record export turnover in 2017

Exports of Vietnam’s Central Highlands provinces hit more than 2.66 trillion USD in 2017, a year-on-year rise of 22.71 percent and the highest so far, said the Steering Committee for Central Highlands Region.

The main export products of the provinces were coffee, pepper, rubber, aluminium, honey, cassava starch, cashew nuts, vegetables and flowers.

Dak Lak was the leading export locality in the region, raking in 575 million USD in the reviewed period, up 4.55 percent against the previous year.

Its coffee beans have been shipped to 75 countries and territories, with revenue from 10 main markets including Germany, Japan, the US, Italy, Switzerland, the Republic of Korea, India, Spain, Mexico and Sweden reaching 10 million USD each.

Central Highlands provinces have encouraged domestic and foreign businesses to build coffee processing facilities, raising the added value of coffee products.

The provinces also have stepped up trade promotion activities, sought new importers while expanding new selling methods to major partners worldwide.

Central Highlands provinces are Dak Lak, Dak Nong, Gia Lai, Kon Tum and Lam Dong.

Ben Tre approves Nexif Energy’s wind power project

The People’s Committee of Ben Tre province has approved the proposal of Nexif Energy, an independent power producer in Asia and Australia, to develop a 80 MW wind power project in the southern locality.

The project, located in Thanh Hai commune, Thanh Phu district, has total investment of 3.68 trillion VND (160 million USD).

The wind power project will be divided in three phases and is expected to generate 250GWh of clean electricity output per year when completed, enough to power more than 50,000 households.

The first phase of the project, with capacity of 30MW, is scheduled to start generating electricity by 2020. The second phase is planned to operate in the fourth quarter of 2020 and the third phase will be started in the third quarter of 2022, Le Tuan Kiet, an officer of the provincial People’s Committee, told Vietnam News.

Currently, Nexif Energy is the major shareholder of the Coc San Hydropower Project with capacity of 30MW in the northern province of Lao Cai and is developing a renewable energy project with total capacity of 500MW in Vietnam within the next three years.

Nexif Energy was established in August 2015 through a partnership between Nexif, a Singapore-headquartered independent developer and manager of power and infrastructure projects in South and South East Asia, and Denham Capital, a leading energy and resources-focused global private equity firm with over 8.4 billion USD of invested or committed capital across eight funds.

Meanwhile, the firms and investors gathered in Dong Thap for the forum and the province’s 2017 investment promotion conference on December 19.

Vietnam’s business environment has been improved but legal shortcomings have remained, requiring continued amendments, he said.

According to PM Phuc, more than 24,000 foreign projects, worth over 320 billion USD, are operating in Vietnam. This year, the country’s FDI inflows hit a record of 35 billion USD.

Vinalines partners up with Hoa Phat-Dung Quat Steel

Vietnam shipping giant Vinalines on December 15 signed a co-operation agreement with Hoa Phat Dung Quat Steel JSC in the fields of training, seaport exploitation, transportation, material and equipment import, and products distribution.

The signing ceremony was part of the Vietnam Logistics Forum 2017 co-organised by the Ministry of Transport, the Ministry of Industry and Trade, the World Bank, and Vietnam Logistics Business Association (VLA).

“Joining such an event is a good opportunity for Vinalines to expand its market share, seek business partnership with domestic and foreign partners as well as introduce logistics services to potential customers,” said Le Quang Trung, deputy general director of Vinalines.

Currently, the shipping giant owns a fleet with a total loading capacity of over two million tonnes, accounting for around 26 per cent of Vietnam’s national shipping fleet. This enables Vinalines to meet requirements of shippers and contribute to the country’s expanded trading network.

Vinalines, which has stakes in 14 port companies and operates over 13,000 metres of piers with a total capacity of 70 million tonnes of cargo a year, is attracting the attention of many influential international groups.

Meanwhile, Hoa Phat is a multi-sector group. The production of steel and coke coal-related products, as well as iron ore is the group’s key business line, making up around 80 per cent of the group’s total revenue.

Also at the forum, businesses, VLA members, and universities signed co-operation agreements to promote logistics development in Vietnam in the future.

As part of the forum, the Vietnam Logistics Report 2017 was published. This publication includes action plans to promote the development of the Vietnamese logistics sector. The website www.logistics.gov.vn also made its debut on this occasion.

Raising people’s awareness for sustainable development of herbal industry

Head of the Party Central Committee’s Commission for Economic Affairs Nguyen Van Binh said that it is essential to raise awareness of the people of the economic and medical values of herbal plants for effective and sustainable development of the herbal industry in Vietnam.

Binh made the remarks while chairing the conference on developing the herbal medicine in the Northwest region held in Lao Cai province on December 15 by the Party’s Commission for Economic Affairs, the Ministry of Health and the People’s Committee of Lao Cai province.

Speaking at the conference with participation of representatives from 14 provinces in the Northwest region, Binh affirmed that the Northwest region boasts a huge potentials and advantages for the development of herbal medicines which is home to 500 types of herbal plants and precious local knowledge of herbalism.

Thus, Binh asked ministries, sectors and localities to focus on developing herbal products with comparative advantages to serve exports including tam that (panaxpseudoginseng) in Ha Giang and Cao Bang; y di (coixlacryma-jobi) in Son La, Lao Cai, Yen Bai; and dang sam (Campanumoea javaniea Blume) in Son La; among others.

Binh noted that it is necessary to clearly define the role of the State and the market, under which, the State should create favourable policies to attract and support enterprises to invest in and apply technology in the herbal sector to create their consumption markets.

In addition, the State needs to help enterprises to connect with cooperatives and local farmers and improve the awareness of the people of the values of herbal plants to effectively develop the herbal industry in Vietnam.

Bao Viet Insurance expands distribution channels

The Bao Viet Insurance Corporation (Bao Viet Insurance) has signed many comprehensive cooperation agreements with domestic and foreign financial advisory and training organizations over the closing months of 2017 in order to diversify its distribution channels, improve the quality of its consultancy, and provide customers with a better experience when accessing and using its products and services.

At the Vietnam Logistics Forum 2017 on December 15, Bao Viet Insurance signed a strategic cooperation agreement with the Digital Novaon Group (Novaon), witnessed by Minister of Industry and Trade Tran Tuan Anh.

As a partner in the “1000 Pioneering Online Exporters” program, Bao Viet Insurance will use the cooperation agreement to provide the best insurance products to export enterprises at reasonable cost and with high security.

Exporters participating in the program will receive top-notch consultancy and training from Bao Viet Insurance and Novaon regarding online export and cargo insurance services through intensive training programs and industry seminars.

“Bao Viet Insurance is committed to working closely with this program, promoting the goal of developing Vietnam’s online export with the best training and consulting so that customers can be assured when exporting,” said Mr. Nguyen Quang Hung, Deputy General Director of Bao Viet Insurance.

Bao Viet has also signed cooperation agreements with large consulting and training organizations with modern technology and a team of professional consultants with long-term experience in the profession, such as consulting and training company LABO on November 2017 and GNC Trade Services Corporation just recently.

Bao Viet Insurance’s remarkable business results in the first nine months of 2017, with revenue growth of 22.9 per cent, stemmed from efforts in strengthening internal cooperation, promoting the cross-selling of products, improving customer service quality, expanding network operations, and product development.

Apax Holdings lists on HoSE

The Apax Holdings Investment Joint Stock Company (stock code IBC), a member of the Egroup, officially joined the Ho Chi Minh Stock Exchange (HoSE) on December 15 by listing 68.8 million shares, equivalent to charter capital of more than VND688.8 billion ($30 million).

The reference price on the first trading day was $0.88 (VND20,000) per share, and after just 25 minutes over 100,000 shares were traded.

Apax Holdings has found success in the development of its education chain and recorded high growth over the last year. It now owns the largest English language training center chain in Vietnam, Apax English, the STEAMe GARTEN bilingual kindergarten system, and the Apax Franklin Academy.

“The listing on HoSE is a breakthrough for the company,” said Mr. Nguyen Ngoc Thuy, Chairman of Apax Holdings. “Listing on HoSE will make the brand name Apax Holdings more well-known and at the same time confirm the company’s desire for sustainable and transparent development.”

Mr. Thuy revealed that Apax Holdings will pursue the fourth industrial revolution (Industry 4.0), which is based on digital technology and integrating all smart technologies to optimize production processes and methods, highlighting technologies that are having and will have greatest impacts.

Therefore, “our high-end English training centers, Apax English, and our STEAMe GARTEN bilingual kindergartens, and later on, the Apax Franklin Academy, will all apply science and technology in teaching,” he said.

The company will also strengthen quality and change the appearance of its centers to better meet the needs of customers.

Apax English now has 55 centers, double the number at the end of 2016. It is expected to reach 100 locations by 2018, while STEAMe GARTEN will have 15 campuses and Apax Franklin Academy five centers.

HCMC signs cooperation with US financier on infrastructure development

HCMC Party Chief Nguyen Thien Nhan worked with leaders of Internatinal Finance Corporation ((IFC) and witnessed the signing ceremony of a cooperation Memorandum of Understanding (MoU) between the city People’s Committee and IFC on improving and expanding city infrastructure in the US on December 15.

HCMC People’s Committee and IFC leaders sign the cooperation MoU on city infrastructure development in Wasington D.C on December 15 (Photo: SGGP)

He has been leading a high level delegation from the city during a working visit to the US.

According to the MoU, the two sides will set up feasible steps to advance towards cooperation in improving and broadening the city’s infrastructure and diversifying capital sources through IFC’s non refundable supply of financial tools and technical consultancy for HCMC.

IFC will assist HCMC in local bond issues in line with Vietnam’s relevant regulations, consult the city on a suitable process to get international credit rating, provide technical advices on Smart City project, implementation of public private partnership (PPP) model and PPP project structure.

On the same day, Mr. Nguyen Thien Nhan visited the Vietnam Embassy in the US, thanked Ambassador Pham Quang Vinh and embassy staff for their contributions to HCMC for the last past including co-organization of the working visit.

He hoped the embassy to keep supporting HCMC in strategies exploiting high technology potentials of the community of Vietnamese people in the US for the city development and startup promotion.

Afterwards, Mr. Nhan and Mr. Vinh attended a forum with the US-ASEAN Business Council (USABC).

The event’s organization was proposed by HCMC to contribute in intensifying relations between HCMC and US investors. It was attended by USABC chairman Alex Feldman and representatives of 17 large groups and companies in the US namely Facebook, Visa, Intel, Coca-Cola, GE, 3M, Abbott Laboratories, Herbalife and Uber.

At the forum, Secretary Nguyen Thien Nhan presented potentials and challenges in HCMC development with the target in the phase of 2020-2030 of quick and sustainable economic development. The city will obtain the growth rate of 8 percent, labor productivity triple national average; contribute 30 percent national budget and become a smart city and the national center in Industry 4.0.

He also listened to and replied to some opinions and suggestions by investors at the forum and affirmed that HCMC always create the most advantageous conditions for businesses to invest and expand investment in Vietnam.

At the headquarters of the World Bank (WB) in Washington D.C, Mr. Nhan and the delegation worked with WB vice chairwoman Victoria Kwakwa and her coworkers.

Mr. Nhan appreciated contributions and attempts by Ms. Kwakwa as former director of WB Vietnam and in the current position together with contributions by WB staff in Vietnam for the last past.

Subsequently the two sides discussed cooperation plans in HCMC’s projects and programs.

Mr. Nhan said that the city would establish working groups to strongly attract residents to attend and estimate the projects and programs, efficiently implement PPP model in infrastructure investment and develop Smart City.

One of the main goals of the HCMC high level delegation’s working visit to the US is to learn the US, one of the most successful nations in startup, he added.

Ms. Kwakwa agreed to organize groups to work with HCMC about the above contents.

WB committed to utmost assisting HCMC within its capacity, she said.

Bosch to invest EUR58 million in Vietnam

The world’s largest supplier of automotive components, Bosch Vietnam Co., Ltd. plans to invest EUR58 million (US467 million) in its gasoline plant in the Dong Nai province.
The additional investment aims to meet the rising demand for continuously variable transmission pushbelts from automakers across Asia Pacific and North America, said Peter Tyroller, member of the Bosch board of management responsible for the Asia Pacific region.
With this investment, the company will have total investment capital of 321 million euros (USD 372 million) in the plant by the end of 2018.
The leading global supplier of technology and services, Bosch has become one of the largest European investors in Vietnam, operating in all four areas: research and development (R&D), manufacturing, sales, and services.

BenQ presented devices for educational purposes

BenQ Corporation, which is a group on projectors for educational purposes, has just introduced its products to customers in Vietnam.

BenQ has equipped a product line with Dust Guard technology to increase the durability and avoid the decay which normally affects the quality of displayed images.

These dustproof projectors possess a sealed box to protect inner accessories, an anti-dust accumulation sensor, a hall sensor, and a dust filter to help them operate better and longer while saving the time of cleaning machine, replacing worn out parts, repairing accessories due to harmful dusts.

In addition, BenQ has presented the interactive flat panel line with a resolution of 4K, having vision-friendly and anti-bacteria properties which were certified by SGS.

The RP interactive flat panel series of BenQ can precisely support multiple touch points at one time and uses a coating of ionic silver to prevent bacteria and microbes from sticking to the screen or getting in touch with users.

In this way, BenQ hopes to provide a healthier learning and working environment.

This RPS is also equipped with the solution of smart eye-care, consisting of cutting-edge technologies like a layer of glare resistant glass, low blue light (TÜV-certified) and zero flicker, all of which reduce eyestrain and fatigue over time.

The series is available in sizes ranging from 65” to 86”. All models of RP654K, RP704K, RP750K, and RP860K are enhanced with powerful integrated tools for working and teaching.

Strategies needed to cope with personnel change

It is necessary to come up with human resource strategies in order to take proactive steps upon personnel change, thereby leaving little or no impact on production and business activities, heard a roundabout at the Saigon Times Group in HCMC on December 14.

The roundtable, focusing on personnel change at companies in a fast-changing business environment, is among a series of seminars and talks themed “Go with Business” that is organized every two months by the Saigon Times Group in collaboration with partners to support business.

The meeting entitled “How to stay calm at personnel change” was jointly held by the Saigon Times Group and ManpowerGroup Vietnam.

Le Thi Kim Thuy, Human Resources Director at Bosch Vietnam, said personnel change includes manpower transfer, promotion, resignation, and dismissal. Positive personnel change is an opportunity for businesses to rearrange and streamline their structure, she said.

However, negative personal change has adverse effects on production and business operations such as increasing recruitment fees, losing customers, having technology secrets lost to rivals, or even creating a bad image on the market.

Therefore, she stressed enterprises should have manpower strategies aligned to their business plans in order to calculate the number of employees needed.

Besides, they should set up manpower training programs for their own employees, and should be adequately prepared to take on contingent workers so that these staff can be appointed to other positions if necessary.

Tran Bang Viet, CEO of Dong A Solutions, said when personnel change means an undesired decline in the number of employees, it has negative effects on production and business activities such as reducing service quality and customer satisfaction.

He said enterprises may face revenue losses, and even a business model destruction like the competition between traditional taxi operators and ride-hailing firms Uber and Grab.

Nguyen Thi Ngoc Hue, human resources manager at AEON Vietnam, said enterprises in the retail sector should work out long-term strategies to minimize impacts of staff change. Specifically, they should standardize operational procedures so that the quality of services will not change in the event of personnel change.

Cao Thi Ngoc Dung, chairwoman and CEO of Phu Nhuan Jewelry (PNJ), also underscored the availability of staff members who are ready to fill any vacancies. In the past, while PNJ was expanding its retail store chain, it had no choice but to take on people who did not quite meet the firm’s job requirements, she added.

But, she noted, things have now changed as PNJ always has available people who can fill vacancies, thus improving the firm’s business efficiency.

Nguyen Xuan Son, Operations Manager of Enterprise Account Outsourcing and Staffing services, HCMC at ManpowerGroup Vietnam, said enterprises in every labor group should have solutions to reduce impacts of workforce change.

Take unskilled labor for example. In addition to maintaining key manpower, enterprises should make use of short-term workforce to meet the demand during high season. As for office staff, enterprises should adopt welfare policy, and frequently organize training sessions for their employees to develop their skills, Son said.

Experts: HCMC apartment supplies seen rising next year

The HCMC real estate market will continue growing with some 40,000 apartments put up for sale next year, mainly mid-end ones, said experts at a conference on the Vietnamese property market in HCMC on December 13.

At the conference, Duong Thuy Dung, senior director of property services provider CB Richard Ellis Vietnam (CBRE), said apartment supplies on the local market as a whole would increase as many housing projects are in the pipeline now.

However, apartment supplies in Hanoi next year will slightly go down compared to 2017. Besides, property transactions are predicted to fall due to possible customer caution.

Apartment prices would increase 3% over this year, said Dung.

Can Van Luc, an economic expert, said the property market would maintain its growth momentum next year due to its positive performance this year. As of September, listed real estate firms had average revenue and profit growth of 40% and 6% respectively.

In addition, prices of offices for lease and apartments have increased by 5-10%. Despite the cash flow into the sector is checked, private investment into the property market has surged 60%.

Cen Group vice chairman Pham Thanh Hung said the globalization of real estate markets would continue next year as more Vietnamese would buy houses abroad and foreigners would buy more properties in Vietnam as well. Vietnam is expected to integrate into the global real estate market in the next two or three years.

The property market has witnessed a huge number of mergers and acquisitions (M&A) deals this year. However, values of such transactions were not revealed.

Pham Xuan Can, chairman of Sohovietnam Real Estate Consulting Company, told the conference that property transactions which have been announced accounts for 20-30% of total M&A deals in the sector.

The M&A section next year may offer many opportunities for Vietnamese property firms.

Vinasoy opens third soymilk plant worth VND900 billion

Vietnam Soya Products Company, commonly known as Vinasoy, launched its third plant worth VND900 billion (US$39.6 million) in the southern province of Binh Duong on December 14.

Located at the Vietnam-Singapore Industrial Park 2A in Binh Duong Province, the facility covers 8.5 hectares and has a designed capacity of 180 million liters per year. Its first phase will yield 90 million liters annually, bringing Vinasoy’s total output to 390 million liters per year.

The plant is expected to shorten the time and distance spent on delivering its products to consumers in the southern part of the country, as its operational plants in the northern and central provinces of Bac Ninh and Quang Ngai will mainly meet the demands there, according to the company.

The company currently holds a soymilk market share of a staggering 84.3% in Vietnam, according to data of the market research firm Nielsen Vietnam. It has obtained revenue of VND4 trillion as of last month, up a whopping 200 times against 2002.

“Vietnam has great potential for soymilk whose consumption will rise to 780 to 900 million liters in the next four years. Vinasoy has yet to tap more than 65% of households in urban areas, and over 50% in rural ones,” said Ngo Van Tu, chief executive officer of Vinasoy, adding that the company aims for revenue of US$1 billion in 2027.

Vietnam imports large volume of Aussie cherries

Although the cherry season has just started in Australia, Vietnam has imported 160 tons of this fruit from this country, according to the Australian Cherry Growers Association.

The cherry season in Australia often starts in mid-October and lasts until the end of February. The 2017-2018 season is the first time the fruit has been shipped to Vietnam again after a period of suspension.

Tom Eastlake, chairman of the Australian Cherry Growers Association, on December 14 told the Daily on the sidelines of an event introducing the cherry 2017-2018 season that Australia hopes to export 350 tons of cherries to Vietnam this season.

Australia did not succeed in exporting cherries to Vietnam in the past time. However, the situation is expected to change thanks to tie-ups with Vietnamese distributors and retailers and promotion programs.

Besides, the medium distance between the two countries could help supply fresh cherries for Vietnamese consumers within 48 hours after harvest, Eastlake said.

The event introducing the new cherry season held by the Australian Trade and Investment Commission (Austrade) includes other activities such as meetings with importers, traders and retailers in Vietnam and the introduction of dishes made of cherries. A similar event was organized in Hanoi City on Tuesday.

Australia has also offered discounts on cherries sold at supermarkets and stores such as Aeon Mall, Annam Gourmet Market, Big C, Giant, Klever Fruits, MM Mega Market and US Mart until January 21 next year.

According to the Australian Consulate General in Vietnam, Australia’s cherry export has grown well over the past time with 5,600 tons of cherries worth US$76 million in the 2015-2016 season compared to US$16 million in 2011-2012.

Ministry to scrap numerous property trading conditions

The Construction Ministry is seeking feedback for amending some articles of the Laws on Construction, Housing, Property Business, and Urban Planning to abolish numerous unreasonable conditions on property trading and development.

The ministry said in a document that a host of regulations on real estate brokering and business should be removed from the 2014 Law on Property Business.

The current regulation stipulates any organizations or individuals wishing to conduct real estate transactions shall set up enterprises or cooperatives and have legal capital of at least VND20 billion.

Meanwhile, the 2014 Investment Law and the 2014 Enterprise Law exclude the legal capital regulation. Therefore, the Law on Property Business should be amended accordingly.

The 2014 Enterprise Law prescribes companies in the conditional business sectors are subject to particular business conditions while the Law on Property Business asks real estate brokers to obtain practicing certificates.

That any real estate brokering service providers must set up their own enterprises, and there are at least two employees obtaining real estate brokering licenses is deemed unnecessary, making life more difficult for enterprises.

The rule that a real estate service provider cannot perform as both a broker and a contracting party in a real estate transaction should be eliminated as well. The reason is that brokers have the right to participate or are authorized to make real estate deals.

That real estate trading floors must have regulations, names, addresses, facilities and technical conditions satisfying operational requirements should also be abolished, according to the ministry.

SCIC stakes unsalable after Vinamilk shares auction

Having successfully sold a 3.33% stake at Vietnam Dairy Products Joint Stock Company (Vinamilk), the State Capital Investment Corporation (SCIC) has had great difficulty offloading its stakes in other companies due to a lack of investor interest.

SCIC on Wednesday announced to cancel the auction of 2.5 million shares it is holding at Lam Dong Pharmaceutical JSC (Ladophar) as no investors had registered to acquire the shares. SCIC has offered the share volume, equivalent to 31.88% of Ladophar’s shares, since December 4.

Such a move came as a surprise as Nguyen Kim Investment and Development JSC had earlier expressed its interest in the deal, saying it would buy more than 2.1 million shares to raise its ownership at Ladophar from the current 24% to 51%, making Ladophar a subsidiary of Nguyen Kim.

However, Nguyen Kim offered to pay no more than VND32,000 a share while SCIC wanted a starting price of VND42,600.

On December 8, SCIC put up for auction 96.2 million shares of Vietnam Construction and Import-Export Corporation (Vinaconex). With a starting price of VND25,600 per share, SCIC expected to raise nearly VND2.5 trillion.

However, only three investors participated in the auction and acquired 5.35 million State shares, equivalent to nearly 5.6% of total shares SCIC had offered, for nearly VND137 billion.

In the rest of the year, SCIC has plans to sell shares of Domesco Medical Import Export JSC, FPT Corporation, Binh Minh Plastics JSC and Tien Phong Plastics JSC.

HCMC to halve project approval process

HCMC has plans to set up an interdisciplinary team in charge of supporting enterprises in completing investment procedures in an attempt to halve the processing time.

In the early stage, the team will support large-scale and important projects that will greatly contribute to the socio-economic development of the city.

Investors just need to submit their investment documents to the team and receive the results without having to contact any other departments. The team will also provide the investors with planning information for their pre-investment preparation and help them contact relevant agencies.

The city government on December 11 sent a document to related departments asking them to prepare a work plan for the team.

The HCMC Department of Construction earlier launched an electronic construction licensing system on July 1 that shortens the construction licensing duration from 133 days to 42.

Vietnam to ship star apples stateside this month

The Plant Protection Department under the Ministry of Agriculture and Rural Development on December 26 will coordinate with Cat Tuong Agricultural Products Producing and Processing Co Ltd to ship the first batch of 1,000 kilograms of star apples to the U.S.

Le Van Thiet, deputy director of the Plant Protection Department, told the Daily on December 14 that Vietnamese star apples have to satisfy three requirements to be shipped to the U.S. The fruit must be planted in coded areas and such areas together with irradiation systems and star apple packaging companies must meet standards of the U.S.

Up to date, 33 hectares under star apple farming in Tien Giang Province has been certificated to be qualified by the U.S., Thien said.

The U.S. permission for Vietnamese star apples will help affirm the quality of Vietnamese goods as the fruit has been accepted by a choosy market. In addition, Vietnam may have more opportunities to expand export markets and raise income for farmers.

Thien did not reveal the value of the first batch of star apples to the U.S., saying it is private between Cat Tuong Company and its U.S. partner.

Other Vietnamese fruits such as dragon fruit, rambutan, longan and litchi have been earlier exported to the U.S., South Korea, Taiwan, New Zealand and Chile.

As for export performance, Vietnam shipped US$3.16 billion worth of vegetables and fruits with over 80% being fruit export revenue in the year to end-November, up 43.2% year-on-year. China, Japan, the U.S. and South Korea were largest buyers of Vietnamese fruits in January-October with market shares of 75.6%, 3.6%, 2.9% and 2.6% respectively, according to statistics of the Ministry of Agriculture and Rural Development.

At a conference on fruit production and export promotion held in Tien Giang Province on December 6, Le Quoc Doanh, Deputy Minister of Agriculture and Rural Development, forecast Vietnam might generate US$3.5 billion from fruit exports, increasing US$1 billion over last year.

Quang Ninh: Van Don gears towards special administrative-economic zone

The northern province of Quang Ninh has decided to choose Arcadis & Callison RTKL from Hong Kong (China) to become its consultant for the development of Van Don special administrative-economic zone.

The decision was made at a meeting on Van Don planning held in the locality on December 16.

Vice Chairman of the provincial People’s Committee Nguyen Van Thanh said Van Don will be developed in line with the local general social-economic planning and the province will have meticulous discussions with the consultant to ensure that Van Don planning is in accordance with provincial development and meets requirements of a special economic zone.

A working group will be set up to support the consultant in evaluating local situation, he added.

Dianne Legge Kemp, Vice President of the Callison RTKL, a subsidiary of Arcadis, committed to sending experienced experts for the work.

In a bid to develop Van Don Special Economic Zone, the province needs around 12 billion USD.

An international airport in Van Don district, about 50 kilometres from Ha Long city-home to the world heritage site of Ha Long Bay, is scheduled to become operational in 2018.

Van Don has a politically and economically important position as it lies on strategic transit route from East Asia to Southeast Asia and from ASEAN to China, in Vietnam-China “two corridors, one belt” cooperation area, in Nanning-Singapore economic corridor and in extended Tonkin Gulf inter-regional cooperation area.

The zone is part of a Government-approved plan to build three such zones in the country. The other two are Van Phong in Khanh Hoa province and Phu Quoc in Kien Giang province.

The zones are expected to spearhead to country’s growth and exploit local advantages to drive growth in the area. They will pilot key new economic and administrative policies before they are applied nationwide to develop the maritime economy.

Vietnamese, Japanese firms partner up to produce Wagyu beef

A deal to produce Wagyu beef under Japan’s technology was signed between the Huy Long An company of the Mekong Delta province of Long An and the Sawai Ranch of Japan on December 17.

This is the first time that Vietnamese and Japanese firms have worked together to raise the Japanese cow species. Accordingly, the cattle will be raised in Huy Long An’s farms in accordance with a strict process under the supervision of Japanese experts, ensuring that the beef quality will meet criteria of Japan’s market.

Vo Quang Huy, Director of the Huy Long An said the company owns one of the largest closed breeding facilities across the country with a capacity to raise about 30,000 cows simultaneously. The company has the policy to seek reliable business partners and advanced breeding technologies to produce high quality and safe beef.

The beef is intended for both the domestic market and export to Japan. Each qualified Wagyu cow could be valued at about 40,000 USD.

At the signing ceremony, Director of the provincial Department of Agriculture and Rural Development Le Van Hoang stated that the province has launched a project to develop agriculture with high technology, including hi-tech cow-breeding.

Official nationwide sale of E5 RON92 biofuel begins

The Viet Nam National Petroleum Corporation (Petrolimex) and PetroVietnam Oil Corporation (PVOil) on Friday officially began the supply of E5 RON92 bio-fuel for sale nationwide.

The biofuel will replace RON 92 petrol, 15 days before the Government’s stipulated deadline. Petrolimex said the firm has operated E5 fuel mixers at repositories in Ha Noi, Hai Phong, Da Nang, HCM City and Can Tho to prepare for the move.

In 2018, the company will invest in two more mixers in Binh Dinh and Nghe An, lifting its total capacity to 1.8million cu.m per year.

PVOil General Director, Cao Hoai Duong, said the company had upgraded and expanded its storage system and operated 11 mixing stations nationwide. According to a statement released by the Government, the ban on RON 92 grade was in line with its effort to boost the consumption of the environmentally friendly E5.

The shift will also help ensure energy security, reduce dependence on fossil fuels and implement commitments made by the Vietnamese Government to reduce greenhouse gas emissions. The decision is expected to facilitate petrol dealers in the trading of E5 bio-fuel, as consumers will no longer have access to RON 92 petrol.

Previously, many plans on the wide use of E5 bio-fuel were set but missed their deadline. The Government, last year, confirmed that plans to start compulsory sales of E5 in eight provinces and cities had been delayed because domestic consumers had shown little interest in switching from RON 92 petroleum.

In the latest move, the Ministry of Industry and Trade said on its online portal that it “may completely replace all RON 92 with E5 by mid-2017.” However, this timeline was moved to the beginning of 2018.

Agribank successfully sells shares at AJC

All shares of the Agribank Gold Joint Stock Corporation (AJC) offered by the Vietnam Agriculture and Rural Development Bank (Agribank) at the December 15 auction were sold to three domestic investors, the Ha Noi Stock Exchange announced.

The stock exchange said the three investors bought more than 12.62 million AJC shares, equivalent to 61.24 per cent of charter capital, at the average bidding price of VND15,044 (66 US cents) per share.

The price is 8.2 per cent higher than the initial price of VND13,900 per share offered by Agribank, helping the bank earn VND189.79 billion ($8.4 million) from the auction.

Earlier, 13 investors registered to buy AJC shares.

The bank, which was set up in 1994, earned revenue of VND1.2 trillion in 2016, a decline of 22 per cent compared with 2015. In the first six months of the year, AJC posted revenue of VND503 billion and after-tax profit of VND1.3 billion.

SSI seek shareholders’ permission to issue bonds, ESOP shares

Saigon Securities Inc is seeking shareholders’ approval for its plan to issue 1.2 million convertible bonds and 10 million ESOP (employee stock ownership programme) shares.

According to the plan, next year, the securities company will issue 1.2 million convertible bonds with three-year term at a price of VND1 million each. Bond interest rate is expected to be 4 per cent per year.

The convertible bonds will be issued to less than 100 investors, with priority given to those who operate in the financial and securities sectors.

Capital mobilised from the bond issuance, valued at VND1.2 trillion (US$53 million), will be used to increase the company’s working capital.

SSI also plans to sell 10 million shares to employees at VND10,000 per share.

Honda Vietnam recalls Accord and Odyssey cars

Honda Vietnam is recalling 652 Accord and Odyssey cars to check faults and replace the mirror switch.

The recalling campaign will be conducted from December 25, 2017 to December 24, 2018.

Of the vehicles, there are 320 Honda Accord cars produced from 2012 to 2015 and the remaining Honda Odyssey were produced from 2015 to 2017. These cars were manufactured at Honda Automobile (Thailand) Company Ltd, and imported by Honda Vietnam.

The firm said that the vehicles’ contact surface treatment in the mirror control switch was not suitable. Long-term use could cause oxidisation, resulting in a rear-view mirror on the vehicle door that could automatically fold when the vehicle was running, parked or inactive when the switch was on. If that happens, the user’s vision would be affected, and might even cause danger to the user.

For other vehicles distributed by Honda Japan, Honda Vietnam was ready to check and repair the vehicles, if customers brought them to authorised dealers.

Honda vehicles would be checked and repaired free of charge. It would take approximately 12 minutes per vehicle.

In July, Honda Vietnam also launched a campaign to recall nearly 10,000 Civic, CR-V and Accord cars to replace the front airbags, as a precautionary measure, to ensure the safety of passengers

In August, the firm recalled 319 Accord cars produced from 2013 to 2015 to replace the battery sensor.

Source link

BUSINESS IN BRIEF 21/12

Latest Updates

NEC Thailand Collaborates with Umong Municipality to Propel Smart City Initiatives

China to focus on stabilizing housing market in 2025, housing regulator says

Mega Matrix Announced that the English Version of "Getting Even: The Secret Prodigy's Playbook" Now Streaming on FlexTV

Most Viewed

Mega Matrix Announced that the English Version of "Getting Even: The Secret Prodigy's Playbook" Now Streaming on FlexTV

Stena RoRo takes delivery of the battery hybrid vessel Guillaume de Normandie

NEC Thailand Partners with Umong Municipality, Lamphun Province to Develop Digital Technology Platform for Elderly Care and Smart City Advancement

Rhenus Group Appoints Gilles Delarue as New Chief Financial Officer and Member of the Management Board

Related Articles

Thailand Leads in Luxury Branded Residences Rankings

Thailand and Vietnam Ranked Among the Top 10 Friendliest Countries for Tourists

Blinken tells ASEAN the US is worried about China’s actions in South China Sea

Thailand Seeks Collaborative Efforts with Laos to Enhance Exports to Vietnam and China

About Us

Popular Category

Editor Picks

Mega Matrix Announced that the English Version of "Getting Even: The Secret Prodigy's Playbook" Now Streaming on FlexTV

Stena RoRo takes delivery of the battery hybrid vessel Guillaume de Normandie