Up to 48.2 percent of the processing and manufacturing enterprises joining in a survey of the General Statistics Office (GSO) said business activities in the first quarter of 2018 will be better.
The survey on business trend of the processing and manufacturing enterprises for the first quarter of this year showed that 35.7 percent of the surveyed enterprises thought their business will be stable in comparison with the fourth quarter of 2017.
Meanwhile, 16.1 percent of the firms predicted they will be hit by more difficulties.
Up to 49.2 percent of the firms forecast an increase in their production, while 14.9 percent predicted a reduction and 35.9 percent foresaw stability in their performance as they made a comparison with their operations in the fourth quarter of 2017.
Meanwhile, 35.8 percent of the firms will see an upturn in the number of orders for export, while 14.9 percent are likely to suffer a downturn. Up to 50.2 percent of businesses said they may see no changes in their orders from the fourth quarter of 2017, according to the survey.
The GSO reported that the number of new enterprises set up in 2017 was 126,859 with a total capital of over 1.29 quadrillion VND (56.8 billion USD), a year on year rise of 15 percent and 45 percent respectively.
Together with nearly 1.87 quadrillion VND (82.46 billion USD) of additional capital of 35,000 operating enterprises, total capital pumped to the economy in 2017 was 3.16 quadrillion VND (139.3 billion USD).
At the same time, 26,448 enterprises resumed their operation, down 0.9 percent year on year, raising total operating firms to 153,300.
The retail and wholesale sector drew the largest number of new businesses with 45,400 firms, followed by the processing and manufacturing sector with 16,000 enterprises and construction with 16,000 firms. Science, technology, consultation services, design, advertisement and other sectors also saw 9,400 new enterprises.
Increase in the number of newly-established businesses was recorded in all regions, leading by the southeast region with 53,700 firms, up 14 percent.
However, in 2017, 60,553 businesses halted their operation, a fall of 0.2 percent year on year. 12,113 others were dissolved during the year.
Long An to increase aquaculture area in 2018
The Mekong Delta province of Long An plans to increase its aquatic farming area by 200 hectares to approximately 9,200 hectares and expects to produce 52,550 tonnes of aquatic products this year.
To this end, the province will tighten management on commercial aquatic farming and announce a list of freshwater aquatic species included in the province’s policies to support the development of local aquaculture in Dong Thap Muoi (Plain of Reeds) region.
It will improve electricity supply networks for aquaculture, dredge irrigation systems and apply a set of standards on aquatic breeding businesses to control the quality of breeding.
It will also intensify management on water environment by monitoring the water quality on the regular basis and make recommendations for water treatment if necessary.
Most of the aquatic farming in Long An are located in Can Duoc, Can Giuoc, Tan Tru, Tan Thanh and Thanh Hoa districts. The province cultivated about 9,000 hectares last year.
Viettel earns nearly 2 billion USD profit in 2017
The military-run telecom group Viettel posted a profit of around 44 trillion VND (nearly 2 billion USD) last year, increasing 12 percent from the previous year.
At its conference to review activities held last weekend, Viettel announced that its total revenue reached 250.8 trillion VND in 2017, up 9.4 percent from 2016.
Despite the group spending a big investment for its 4G network and the largest scale telecoms network in Myanmar, it still yielded a 12 percent increase in profit in 2017.
Its overseas investment rose by 24.4 percent, six times higher than the world average.
The local telecom business contributed 65.6 percent of the group’s total revenue, while its overseas investment contributed 12.5 percent.
Viettel also earned 12.5 trillion VND from its production of equipment, including 300 BTS 4G stations. In 2017, it had 25 licences of invention, three times higher than that of 2016 and took the third position in the country.
The giant telecom group contributed 41.1 trillion VND to the State budget, up 2.3 percent from the previous year.
Viettel also received important awards such as the most profitable firm in Vietnam, the biggest taxpayer in the country and the company with the highest brand value of 2.6 billion USD.
The group will target total revenues of 277 trillion VND in 2018, increasing 10.5 percent from last year, and will expect profit to rise by 3.2 percent to 45.5 trillion VND.
Its number of 4G subscribers this year is expected to hit 17 million.
It also plans to improve network quality to bring its 4G data speed to the top 10 of the world.
Viettel will inaugurate its mobile phone services in Myanmar – its 10th foreign market this year.
Can Tho prioritises bonds with firms from US, Japan, RoK
The Mekong Delta city of Can Tho will prioritise trade and investment promotion in countries like Japan, the Republic of Korea (RoK) and the US, said Nguyen Khanh Tung, director of Can Tho Investment-Trade Promotion and Exhibition Centre.
At a conference held on January 2, Tung noted that the move aims to lure large projects to the city, including logistic centre, the Can Tho Vietnam-Japan industrial park, an information and technology zone and a high-tech agriculture zone.
The city will call for investment in the Korea-Vietnam Incubator Park and hold 15 promotion events in Lam Dong province, Ho Chi Minh City and Dong Thap province to attract investment in high-tech agriculture.
National exhibitions will be held in the city, including a southern traditional cake festival, a trade fair on high-quality Vietnamese products, the international Vietbuild exhibition and an international agriculture trade fair.
Last year, trade promotion activities helped the city lure investment and increase export revenue. Some 77 foreign direct investment projects worth 656 million USD landed in the city in 2017. The city earned nearly 1.8 billion USD from export and service revenue, 5.9 percent above its goal and 13.9 percent higher than the previous year.
At the event, Truong Quang Hoai Nam, Vice Chairman of the local People’s Committee, asked departments and branches to work with the Investment-Trade Promotion and Exhibition Centre in trade promotion activities.
Dong Nai calls for high-tech, environmentally-friendly FDI projects
Southern Dong Nai province wants high-tech, environmentally-friendly and energy-efficient projects in agriculture and manufacturing in 2018.
The province is inviting more foreign direct investment (FDI) in high-tech projects in support industries, such as manufacturing of parts, components, materials and accessories for the mechanical engineering, electronics and informatics industry.
The province will prioritise projects in logistics, infrastructure, auto-making, information technology and manufacturing of materials and accessories for clothing and footwear industries and new materials.
It will also call for investment in projects that produce clean, high-yielding crops and agricultural products or those that apply biotechnologies and those in food processing and herbal medicines
The province’s People’s Committee will continue working with enterprises to support their development. At the same time, it will support investors in performing investment procedures regarding land, construction, auction and environment, as part of efforts to attract more FDI projects.
It will assist businesses to get loans from banks, and continue implementing programmes to improve local business competitiveness, quality control and intellectual property protection.
Dong Nai has about 1,300 FDI projects from 45 countries and territories with total investment of 26.9 billion USD.
Last year, the province drew in 1.82 billion USD in FDI, almost doubling its yearly target. Most of the FDI was poured into local industrial parks and in the fields of processing, manufacturing, real estate and consultancy services.
VietJet receives first A321neo aircraft
The low-cost carrier Vietjet has become the first airline in Southeast Asia to receive the delivery of an A321neo (new engine option).
The Airbus aircraft landed at Tan Son Nhat International Airport on January 2 from Hamburg, Germany.
The A321neo, registered as VN-646, is powered by Pratt & Whitney’s latest-generation GTF engines. It is also the 17th aircraft to be delivered to Vietjet from Airbus in 2017.
Fitted with 230 comfortable, leather seats and high-quality carpeting, the first five rows of Vietjet’s spacious, new A321neo have been especially designed to accommodate passengers flying Skyboss, the airline’s premium service. The aircraft’s interior also features a unique colour-changing LED light system and striking decor to create a comfortable and refreshing ambience through the whole cabin.
According to the aircraft manufacturer, its GTF engines offer a significant reduction in fuel consumption — at least 16 percent from day one and 20 percent by 2020 — as well as 75 percent reduction in noise and 50 percent in emissions. The engines were first introduced by Pratt & Whitney in 2016. Vietjet is one of the very first airlines in the world to incorporate the engines into its aircraft.
The new aircraft will begin operating on domestic and international routes to and from Vietnam in January 2018.
On this occasion, Vietjet also announced its decision to upgrade an existing order for 42 A320neo aircraft to the superior and larger A321neo models. Accordingly, the airline now has a total of 73 A321neo and 11 A321ceo on order for future delivery.
“The A321neo combines a higher capacity with the lowest operating costs in its class, offering unbeatable efficiency. This aircraft will be a real asset in Vietjet’s expansion plans in such a competitive market,” Fabrice Bregier, Airbus Chief Operating Officer cum President of Commercial Aircraft, said.
“The A320 family aircraft has greatly contributed to Vietjet’s impressive operation performance, with the airline’s technical reliability rate standing at 99.6 per cent in 2017. The aircraft have also helped us maintain some of the lowest operating costs in the airline world,” said Nguyen Thi Phuong Thao, Vietjet President and CEO.
“The upgraded A321neo deal once again emphasises Vietjet’s ceaseless efforts to modernise our fleet. We believe that the technical reliability rate and other operation and safety indexes will continue to go up in order to bring maximum comfort, joy and safety to our valued passengers,” she said.
HCM City firms ready for Tet
Most businesses in Ho Chi Minh City have wrapped up plans for their Tet (the Lunar New Year) production almost two months ahead of the country’s biggest festival, which falls on February 16.
The total value of goods they will produce for distribution two months before and after the festival is 17.8 trillion VND (784.1 million USD), 743 billion VND (32.7 million USD) higher than last year, Nguyen Huynh Trang, Deputy Director of the Department of Industry and Trade, said.
The focus would be on poultry and cattle meats, sugar, eggs, processed foods, cooking oils and rice, she said.
Vissan Joint Stock Company, which processes and sells fresh and frozen meat and foods, said the company started making its plans in June and earmarked 650 billion VND for Tet production.
The company will supply 3,000 tonnes of fresh pork and beef and over 3,500 tonnes of processed foods, 30 per cent and 15 per cent more than last year.
It also plans to launch many new products this year.
Saigon Food Deputy General Director Le Thi Thanh Lam said the company has produced more than 800 tonnes of finished products and launched 16 new processed food and ready-to-eat products for the Lunar New Year.
Many poultry meat and egg suppliers like Ba Huan and Vinh Thanh Dat as well as confectionery producers also plan to increase supply.
Supermarkets, malls and convenience stores have also made plans for Tet, with many planning to increase supply two or three times over normal.
Saigon Co.op has stockpiled 130,000 tonnes of goods, a year-on-year increase of 15 percent, for three months starting a month before Tet.
The quantity of goods it will sell under the city’s annual Tet price stabilisation programme will increase by 5-30 percent, while the supply of fresh foods, including vegetables, fruits and meats, confectionery, sweets, beverages and beer will be 15-30 percent higher than last year.
Lotte Mart Vietnam said it would increase supply by over 25 percent compared to last year.
It has also asked its suppliers not to hike prices during Tet.
The supermarket plans to offer more than Tet gift packs at prices ranging from 68,600 VND to 1.25 million VND.
Big C supermarket chain too has made efforts to ensure adequate supply and steady prices during Tet.
To meet the higher demand, especially for essential goods, it has negotiated with producers and suppliers to buy ample quantities of beers, beverages, confectionery and other products.
Producers and retailers will also have many promotions, especially for beverages, confectionary, sweets, candy and clothes, according to the Department of Industry and Trade.
The companies participating in the price stabilisation programme have promised to keep prices steady for a month before and after the holidays, it said.
They would cut the prices of essential items like pork and chicken meat and eggs before Tet, it said.
The department will coordinate with other relevant agencies to monitor the market to ensure supply and quality.
It will work with the managers of traditional markets to encourage traders not to sell goods without clear origins.
Measures sought for sustainable tourism development
More than 350 international and domestic experts from different sectors met to discuss sustainable tourism development at a workshop held in Long Xuyen city, the Mekong Delta province of An Giang on January 2.
The event, the ninth of its kind, was hosted by the Ho Chi Minh City University of Social Sciences and Humanities of the Vietnam National University (VNU), Binh Duong University, the US’s University of Hawaii and the provincial People’s Committee.
Addressing the event, Chairman of the provincial People’s Committee Vuong Binh Thanh noted the province’s favourable conditions for tourism development, saying that the locality has beautiful landscapes and special national relic sites.
He hoped that participants will help make the tourism sector an economic spearhead and a significant part of the province’s socio-economic development strategy.
Nguyen To Lan, from the Institute of Han-Nom Studies in Hanoi, highlighted spiritual tourism potential in Sam Mountain, Chau Doc district.
Ngo Thanh Loan from the VNU – Ho Chi Minh City University of Social Sciences and Humanities also introduced homestay tourism potential in rural areas of the province.
An Giang is the religious tourism hub in the south, particularly in the Temple of Ba Chua Xu (Protector Goddess), Loan said, adding that the province is also home to numerous religions and beliefs.
Meanwhile, Jonathan Warren from the US’s University of Washington stressed the need for developing culture and education in tandem with the economy, saying that investment for education and culture will drive economic development and vice versa.
Participants also discussed ways to strengthen management over climate change adaption in the Mekong Delta region and promote spiritual tourism in Vietnam.
Quang Ninh province attracts 60.6 trillion VND in investments
Total investments in the northern coastal province of Quang Ninh enjoyed a year-on-year surge of 10.1 percent to the tune of 60.6 trillion VND (2.68 billion USD) in 2017 thanks to improved business climate.
According to a report from the provincial Department of Planning and Investment, of the total amount, state capital was 22.9 trillion VND (1 billion USD) and that of non-state capital was 25.7 trillion VND (1.14 USD). Meanwhile, foreign businesses poured 12 trillion VND (531.6 million USD) into the province.
Major breakthroughs were made in infrastructure, technology and human resources as parts of efforts to lure investments from large enterprises like Vingroup, Sungroup and FLC Group, said Vice Chairman of the provincial People’s Committee Vu Van Dien.
Tens of trillion VND were splashed out on the upgrade of local infrastructure, giving a momentum for economic development. Those included 7.5 trillion VND Quang Ninh airport project, which serves as a lifeline to turn Van Don island district into a special economic administrative unit in the northern region.
Other giant projects are Ha Long-Hai Phong expressway and construction of Bach Dang bridge project and Ha Long-Van Don expressway project. The two projects will link economic triangle Hanoi-Hai Phong-Quang Ninh, making contributions to bolstering socio-economy in the northern key economic region that comprises seven cities and provinces – Hanoi, Hung Yen, Hai Phong, Quang Ninh, Hai Duong, Bac Ninh and Vinh Phuc.
Regarding the tourism and service sectors, the province allowed large firms like CEO Group, FLC Group, MBLand and Viglacera to develop high-end tourism complexes in 2017.
Investors will kick off the construction of tourism complex chains at Van Dong special zone in 2018 while five-star Furama Ha Long Vietnam Resort & Villas will be built on Quan Lan island to improve service quality and elevate local images in the international arena.
The province is also rushing off its feet to prepare for the construction of 90 kilometre Van Don-Mong Cai highway.
Petrol prices stable, oil prices slightly increase
The price of bio-fuel E5 was kept unchanged while those of diesel 0.05S and kerosene increased slightly by 360 VND and 495 VND per litre respectively in the latest regular adjustment of petrol and oil prices on January 4.
The Ministries of Industry-Trade and Finance announced that the prices of E5 are not higher than 18,243 VND per litre, and those of diesel 0.05S and kerosene should not be higher than 15,529 VND per litre and 14,112 VND per litre respectively.
The changes took effect at 15:00 on January 4.
This is the first time the petrol and oil prices were adjusted in 2018.
The Ministry of Industry and Trade and the Ministry of Finance conduct a review of fuel prices every 15 days to adjust the prices in accordance with fluctuations on the world market.
In 2017, petrol and oil prices were adjusted 24 times, including nine hikes and nine drops.
Trade fair promoting Thai products launched in Hanoi
The Made in Thailand Outlet 2018 fair officially opened at the Hanoi International Exhibition Centre at 91 Tran Hung Dao Street on January 4-7.
The event, the 13th one of its kind, was co-organised by the Office of Commercial Affairs of the Thai Embassy in Vietnam and the Vietnam National Trade Fair & Advertising Company (Vinexad).
On show at 150 booths of the fair are products of 100 firms from Thailand, including food and beverages, household appliances, textile, jewellery, electric devices, health care products, car parts, bicycles and accessories, among others.
Director of the Ministry of Industry and Trade’s Asia-Africa Markets Department Le Hoanh Oanh said that trade relations between Vietnam and Thailand have seen strong growth. Two-way trade hit 15 billion USD in 2017, a rise of 20 percent year-on-year. Especially, Thailand is Vietnam’s largest trade partner in ASEAN and the 10th leading investor in the country.
Vietnam and Thailand have closely worked with other ASEAN members to build the ASEAN Economic Community. In addition, the two countries’ stronger participation in regional and international economy offers various opportunities to promote trade cooperation and investment, Oanh added.
She also voiced her hope that the trade fair will contribute to the bilateral trade relations as the two nations deepen their strategic partnership and aim to bring trade turnover to 20 billion USD by 2020.
EVN aims to raise Vietnam’s ranking in electricity access index
The Electricity of Vietnam (EVN) group will strive to raise the country’s ranking in electricity access index to at least the 60th position among 190 countries and economies in 2018.
This is one of the goals set by the group at a conference to set tasks for this year in Hanoi on January 4.
In the World Bank’s Doing Business 2017, Vietnam’s Getting Electricity Index climbed 32 places from 2016 to the 64th among 190 countries and economies. It surpassed the 70th position targeted by the Government.
EVN Deputy General Director Vo Quang Lam said basing on projections of power supply and demand in 2018, the group believes that the electricity system will be able to ensure sufficient supply for the economy and daily activities if there are no abnormal situations.
The group aims to produce and buy 210.49 billion kWh of electricity this year, up 9.38 percent from 2017, while working to reduce the rate of power loss by 0.27 percent to 7.2 percent. It also plans to raise labour productivity by 8 – 10 percent from last year.
He said to that end, EVN has asked its subsidiaries to boost the stability and capacity of power generation, especially that of thermal power plants in the Vinh Tan and Duyen Hai electricity centres, and ensure fuel for electricity production. Meanwhile, hydropower companies need to work with localities where they are based for the effective use of water resources and ensure their reservoirs operate in line with regulations.
The group will continue carrying out solutions to further facilitate electricity access, implement the “single-window” mechanism between EVN units and state managerial agencies, and improve its staff’s capacity.
At the conference, Deputy Prime Minister Trinh Dinh Dung said EVN is the country’s key energy group and needs to continue proving itself as a pillar in power provision.
It needs to restructure power generation sources and replace polluting sources with clean ones. The firm should also accelerate key investment projects to meet electricity demand in the coming years while saving natural resources and protecting the environment, he added.
Made-in-Thailand Outlet exhibition opens in capital city
The 2018 Made-in-Thailand Outlet is taking place in Ha Noi from January 4 to January 7, with a variety of products on offer.
The fair houses 108 pavilions featuring food, beverages, fruits and household utensils, as well as jewellery, cosmetics, garment-textile, souvenirs and automobile spare parts.
Some 100 participating Thai businesses use this occasion to advertise their products and seek Vietnamese partners to boost future bilateral trade, Thai Ambassador to Viet Nam, Manopchai Vongphakdi, said.
Thailand is Viet Nam’s largest trading partner in the ASEAN bloc, said Le Hoang Oanh, Director of the Asia and Africa Markets Department under the Ministry of Industry and Trade.
The fair will contribute to promoting trade and economic co-operation between Viet Nam and Thailand. The two countries would strive to raise two-way trade to US$20 billion before 2020, Oanh said, adding that this was the target set by the two leaders of the countries during an official visit of Viet Nam’s Prime Minister Nguyen Xuan Phuc to Thailand from August 17-19, 2017.
The fair is organised by the Viet Nam National Trade Fair and Advertising Company (Vinexad) and the Trade Office under the Thai Embassy in Viet Nam.
Nearly 100 firms to participate in Vietship 2018
Nearly 100 businesses will take part in the 9th International Exhibition of Shipbuilding, Shipping and Offshore Technology (Vietship 2018) in Ha Noi from January 24-26.
Among these enterprises, include those from foreign countries with developed maritime industries, such as Japan, South Korea, Singapore and China, as well as India, Germany, the US, Norway and the Netherlands.
They will showcase shipbuilding, ship repair and maintenance technology, material and equipment for shipbuilding, equipment and facilities for shipyards and offshore engineering and facilities, as well as waterway transportation and services, marine supply logistics and ports technology and equipment.
“Vietship 2018 will be held this year when signs of recovery are being shown by the world marine and shipbuilding industry, after suffering the impact of the global economic crisis,” Ngo Tung Lam, deputy general director of the Shipbuilding Industry Corporation (SBIC), the exhibition’s organiser, said at a press conference in the capital on Thursday.
Lam said he hoped that the event would provide recommendations to policymakers to further facilitate the development of industries.
Vietship 2018, which will take place at the National Convention Centre, is expected to attract more than 10,000 visitors.
Two main activities, including the Vietship 2018 Buyer Forum, which is designed to provide buyers, sellers and manufacturers exclusive one-on-one meetings to gain a better understanding of each other’s capabilities and seek partnerships for future businesses, as well as a conference discussing the challenges and opportunities of domestic shipping and the shipbuilding market, will be held on the sidelines of the event.
Vietship is the largest and longest established exhibition in Viet Nam featuring all aspects of shipbuilding, shipping and offshore technology.
The previous event saw 19 contracts and agreements worth over VND500 billion (US$22.4 million) inked between domestic and foreign partners. It had 220 stands from 130 companies, including 78 foreign firms.
TMV to recall over 8,000 Corolla units
Toyota Motor Vietnam (TMV) is recalling more than 8,000 locally-assembled Corolla units to check and replace the airbag inflator module of the front passenger airbag.
The vehicle was produced from July 24, 2008, to December 31, 2009.
According to Toyota’s global announcement, the vehicles are equipped with front passenger air bag inflators (Takata-designated), which contain a non-desiccated, phase-stabilised ammonium nitrate propellant.
According to Takata’s reports, a defect related to motor vehicle safety may arise in the inflators due to propellant degradation occurring after prolonged exposure to high absolute humidity, high temperatures and high temperature cycling. Activation of a non-desiccated ammonium nitrate inflator with a degraded propellant may result in an inflator rupture. An inflator rupture may cause metal fragments to pass through the air bag and into the interior of the vehicle at a high speed, which may result in injury or death to the vehicle occupants.
TMV will check and replace the airbag inflator module of the front passenger airbag in affected vehicles at zero cost. The total time of checking and replacing is expected to take some one to three hours and will be carried out at the Toyota dealership network nationwide.
The front driver airbags supplied by another supplier (not Takata company) will not be involved in this programme.
In order to conduct the campaign successfully, TMV dealers will send an invitation letter and/or invitation call about the programme to the vehicle owners on their list.
For Corolla units not officially distributed by TMV, if they receive a request from customers, TMV will contact Toyota Motor Corporation (TMC) to confirm the information. Once TMV gets an official approval from TMC, they will replace the airbag inflator module following standard procedures of the campaign, again at zero cost.
VN, Russia sign deal on autos
Russian vehicle makers will set up joint ventures in Viet Nam to manufacture and assemble trucks and cars with 10 seats and above, crossover utility vehicles and several kinds of special-purpose vehicles.
This is part of a deal signed between Minister of Industry and Trade Tran Tuan Anh and the Russian Ambassador to Viet Nam Konstantin V.Vnukov in Ha Noi on Wednesday.
Under the revised protocol, automobiles manufactured by joint ventures must comply with Prime Ministerial Decision No 08/2017/QD-TTgCP and Government Decree No 116/2017/ND-CP. These stipulate the conditions on manufacturing, assembling, importing and trading in warranty services, automobile maintenance and other related documents.
Viet Nam will allow the venture to import duty-free 2,550 complete built-up units and 13,500 sets of automobile parts from 2018 to 2022 as a way of exploring the capacity and tastes of the market.
The revised protocol will provide more favorable conditions for Russian automakers, including KAMAZ, GAZ and UAZ, to explore and penetrate the Vietnamese market as well as creating diverse options for Vietnamese consumers.
Speaking at the signing ceremony, Minister Tuan Anh said that although the protocol was effective from October 5 last year, it was a new field of co-operation. Management mechanisms and policies for the vehicle industry in Viet Nam were in the process of completion, so enterprises had yet to benefit from the protocol’s preferential treatment.
Thaco’s first BMW and MINI cars shipped
The first 55 cars of Truong Hai Automobile Joint Stock Co (Thaco), including 21 BMW-branded cars and 34 MINI-branded cars, have officially shipped to Viet Nam for year-end distribution.
In addition to already successful cars in Viet Nam, such as the BMW 3 Series, some other sports cars such as the 4 Series (including the 430i Grand Coupe), 528i GT and especially the high-end SUV line, X5, will be released. Under the MINI brand, the arriving shipment includes the Cooper, Cooper S and Countryman.
The new version of the MINI Countryman, appearing in Viet Nam for the first time, is equipped with outstanding features compared with the old version.
The most interesting addition to the Countryman portfolio is potentially the Cooper S ALL4 version, with intelligent powertrain distribution for all four wheels.
Almost four months have passed since BMW Group Asia announced the end of co-operation with Sime Darby, the investor of Viet Nam Euro Automobiles Corp (EAC), and signed a letter of co-operation with Thaco to import BMW, MINI and BMW-Motorrad for the Vietnamese market from January 1, 2018. This is the first shipment of Thaco to land in Viet Nam’s port in preparation for the shopping season at the end of the year.
In the passenger car segment, besides three existing brands including Kia, Mazda and Peugeot, Thaco will distribute two new brands (BMW and MINI).
The appearance of the new BMW and MINI cars by Thaco promises to make the market more exciting and add more value and new options for Vietnamese customers.
In addition to the first car lot landing in Viet Nam, Thaco insists that it will continue to import more cars of the two brands, BMW and MINI, in the coming period.
First online freight solution begins in VN
The Ifreight Joint-Stock Company on Wednesday launched the first online logistics booking and orders management system in HCM City.
The system will ensure safety and security and will save time and costs, helping to increase enterprises’ competitive ability.
With the system, customers will be able to easily search and compare transportation prices, book orders online within two minutes, manage orders and transportation routes through informational graphics, closely contact partners and Ifreight staff on the system, and update situations through SMS. Solutions will then be provided to deal with any problem.
The system supports all logistics services, including domestic, sea, air transportation and customs services.
Such a system will be important at a time of the fourth industrial revolution and the Internet of Things, and will help reduce service prices.
According to the Viet Nam Logistics Association, the price for logistics services in Viet Nam is double that of the average world level, which is 10-12 per cent of GDP. In Viet Nam, it is around 25 per cent of GDP.
Bac A Bank to debut 500m shares on UPCoM
Bac A Bank will debut 500 million shares, an equivalent to charter capital of VND5 trillion (US$219.3 million), on the Unlisted Public Company Market (UPCoM) on December 28 under the code BAB.
The reference price for the first trading day is set at VND20,000 ($0.88) per share, which is allowed to fluctuate between +/-40 per cent, the Ha Noi Stock Exchange has announced.
This is the fourth joint-stock commercial bank trading stocks on UPCoM this year, following Viet Nam International Bank (VIB), KienLongBank (KLB) and LienVietPostBank (LPB).
VIB’s share is the most expensive on UPCoM, being traded at VND23,500 per share, while a LPB share is valued at almost VND13,000, and a KLB share price is nearly VND10,000.
Ending September this year, the Nghe An-based lender reported total assets of roughly VND85.86 trillion, an increase of 13 per cent over the end of 2016. Its capital mobilisation reached VND63.2 trillion during this period, up 8 per cent, and outstanding loans were VND52.1 trillion, up 7 per cent compared to the start of 2017.
In the third quarters, its pre-tax profit reached VND483 billion, up 25 per cent year on year. The bad debt ratio was 0.68 per cent, down from 0.8 per cent seen at the beginning of the year.
New regulations issued over operation of SCIC
The Government has issued two new decrees over the operation mechanism of the State Capital Investment Corporation (SCIC).
The decrees prevent the SCIC from investing in companies of relatives but allow it to found subsidiary companies.
Under Decree No 147/2017/ND-CP, SCIC is not allowed to pump capital into buying stakes at enterprises, where the managers are related to the corporation’s chairman, members of the Management Board, controllers and general director, as well as deputy general director and chief accountant.
The relatives include spouses, natural parents, adoptive parents and natural son/daughter, as well as adoptive son/daughter, natural brother, natural sister, brother-in law and sister-in-law.
SCIC will not be allowed to contribute capital with its subsidiary companies to found joint stock companies, limited liability companies or implement business co-operation contracts.
The Decree No 148/2017/ND-CP allowed SCIC to found and contribute capital to subsidiary companies, including fund management companies, following the established laws.
The two decrees were issued and took effect early this week.
SCIC had a charter capital of VND50 trillion (US$2.2 billion). It was founded in 2005 and officially began operation in 2006, with an aim to enhance the efficiency of State capital at enterprises.
SCIC planned to earn a revenue of VND11.2 trillion and a pre-tax profit of VND8.3 trillion in 2017.
Its business report in the first half of this year, the latest one available on its official website, showed that SCIC earned a revenue of VND2.67 trillion in the period, dropping by VND3 trillion over the same period last year. The pre-tax profit also dropped by more than VND2 trillion to VND2.5 trillion.
As of June 30, SCIC’s total assets reached VND60.8 trillion.
SCIC was managing State capitals worth VND18 trillion in book value at 144 enterprises.
Steel giant Hoa Sen’s total debt doubles
The total debt of giant steelmaker Hoa Sen Group has doubled since the beginning of this year due to a sudden increase in the demand for working capital.
According to the group’s consolidated financial statement released recently, total debt at the end of the year reached nearly VND16.3 trillion (US$715 million), of which short-term debt accounts for more than 82.5 per cent. The rest was long-term bank loans used for the purpose of construction and purchasing fixed assets.
Within the first three months of 2018, Hoa Sen must pay some VND900 billion out of VND8,500 billion in short-term bank loans, owed to Asia Commercial Bank, Vietcombank and Standard Chartered Bank.
The group’s sales and services operation helped Hoa Sen earn approximately VND26.1 trillion, an increase of 46 per cent year-on-year. Financial income was more than VND56 billion, which was still not enough to cover financial expenses of VND589 billion, including interest expenses of VND482 billion.
The group’s net profit decreased 11 per cent, standing at VND1.3 billion, equivalent to just over 80 per cent of the company’s plan set in the annual shareholders’ meeting this year.
HNX hosts auctions worth $41.7 million in December
Total 169 million shares were sold out in 28 auctions of State capital in the Ha Noi Stock Exchange (HNX) in 2017, raising total capital of over VND2.6 trillion (US$114.5 million) for the State budget.
The number of auctions for State capital made up 71 per cent of the total number of auctions in 2017.
Auctioners include major State corporations such as the Viet Nam National Oil and Gas Group (PetroVietnam), the Viet Nam Post and Telecommunications Group (VNPT), the Viet Nam National Shipping Line (Vinalines) and Song Da Corporation.
In December alone, some VND949 billion ($41.7 million) was raised through seven auctions of shares held by State-owned enterprises.
More than 365 million shares were put up for sale in the month, 6.9 times higher than November, but only over 50 million shares, equal to 14 per cent of the offered volume, were sold to investors.
Only ten inital public offering (IPOs) were held last year, much lower than the numbers in 2015 (64 IPOs) and 2016 (30 IPOs). The total number of shares sold was over 321 million, accounting for 49 per cent of the total number of shares offered, with a total value of more than VND5 trillion.
Three IPOs with 138 million shares were sold out, collecting more than VND2.3 trillion for the issuers. In particular, the IPO of Viglacera Corporation saw 100 per cent of the shares being sold out, attracting the attention of more than 1,000 investors, the highest since 2015, with 92 per cent of the shares sold to foreign investors.
In January, HNX plans to host 15 auctions with a total volume of 559 million shares.
Association proposes housing stimulus package
HCM City Real Estate Association has proposed the State Bank of Viet Nam should raise a stimulus package similar to its previous VND30 trillion (US$1.3 billion) preferential home loan package.
The package should aim to provide preferential loans for the purchase of affordable apartments, with prices of around VND1 billion per unit.
Since the VND30 trillion housing stimulus package ended in 2016, no similar packages were released, while demand remained high, the association said.
The association said a sum of VND1 trillion out of VND2 trillion, allocated to the Viet Nam Bank for Social Policies to support social housing projects, should be transferred to four credit institutions – Vietcombank, Vietinbank, Agribank and BIDV – to provide preferential loans for social housing purchases.
In addition, the State budget should spend some VND1-2 trillion annually in the 2018-20 period to provide loans for affordable home purchases at the preferential interest rate of 4.8 per cent per year.
The association also proposed mechanisms to be put in place to ensure the preferential lending package is used for the right purposes.
Further, preferential credits should also be provided to social housing developers to lower housing prices.
The VND30 trillion housing stimulus package was introduced in 2013 when the real estate market faced high inventories and bad debts after the 2008-09 freeze.
Some 70 per cent of the package was provided to home buyers at preferential interest rates. The package helped more than 56,000 low-income earners to own homes.
Seminar talks up construction industry growth potential
The construction industry enjoyed strong growth last year and is expected to maintain the momentum this year too, experts have said.
Speaking at a seminar on the development potential of the Vietnamese construction industry in 2018 held in HCM City on January 2, economist Dinh The Hien said the industry’s high growth rate in the past 10 years — with its revenues going up from US$1.2 billion in 2007 to nearly $13 billion last year – had been supported by economic recovery, the Government’s investment in infrastructure and housing, and the liberal issuance of building permits.
Last year the real estate sector had the largest number of new businesses followed by the construction sector.
Among listed companies, construction companies had among the highest growth rates in terms of revenues and profits in 2015-17, Hien said.
The strong FDI flows and mergers and acquisitions deals in the real estate sector at the end of 2017 would push up demand for infrastructure and construction of housing and factories, which would give the construction industry a boost this year, he said.
Bui Quang Tin, CEO of Bizlight Business School, said according to the Ministry of Transport, Viet Nam needs $48 billion for infrastructure development in the next five years.
The strong recovery by the property sector in recent years has meant construction companies have their order books always full, he said.
“Previously, domestic construction companies had worked for foreign contractors, but now we dominate the construction market.”
Some companies like Hoa Binh Corporation have even bidden for foreign construction projects as engineering, procurement and construction (EPC) contractor, he said.
Nguyen Van Hiep, former director of the HCM City Department of Construction, said the country’s construction companies now have advanced engineering and construction know-how.
He urged them to expand their operations abroad, warning that if one day the domestic property market slumps, the construction industry would “die”.
The Government should have policies to encourage construction firms to go abroad, he added.
Le Viet Hai, vice chairman of the Viet Nam Association of Construction Contractors, said the revenue of global construction industry reached an estimated $11 trillion last year.
If local builders go abroad to work and earn 1 per cent of this amount, that would be worth billions of dollars, he pointed out.
There is a huge opportunity for the firms to go abroad because the construction cost in other countries is around $2,000 per square metre, but it is only $500-$1,200 in Viet Nam, he said.
In addition, Vietnamese firms are no less competent than their foreign counterparts in the construction of high-rise buildings and have gain great trust among foreign investors, he said.
For instance, Hoa Binh Corporation has won two bid packages in Kuwait and also been contracted for construction in Malaysia and Myanmar, he said.
Hai said the association has submitted a proposal to turn the export of construction services into a key economic sector.
It is necessary to go abroad when local enterprises are qualified to do so, he added.
