030517Intellasia Finance Vietnam - HKBAV · 2017-05-03 · Hoa Binh businesses look for...

3 May 2017

finance & business news

FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Banks still yearn for long-term capital 1Banks simultaneously report large profits 3Shareholders long for transparent banks 4M&A in insurance sector still ongoing 5The big players in the fintech market 6Banker defends ATM fees 7Vietcombank plans to divest from some banks 7Vietcombank set to up capital to $1.74 billion 8NCB to raise total assets to $4.2 billion 9AIA delivers record new business performance for Q1 9Moody's and S&P affirms Vietnam's sovereign rating 10Industrial production index rises 7.4pct in April 11Consumer price index unchanged in April 11Vietnam's inflation under control 12Vietnam records trade expansion in four months 12Low worker productivity weakens GDP growth in Vietnam 13Vietnam's exports see positive signs 14Agro-forestry-aquatic product exports hit $10.8 billion 14Garment exports grow despite hurdles 15Quang Ninh's exports increase by 5pct in first months of 2017 16Vietnam's cement, clinker exports to Peru, Sri Lanka

remarkably grow in Q1 16Basic salary to rise to VND1.3 million from early July 16Vietnam second most attractive SEA destination for foreign

investors 17HCM City sees breakthrough developments 17Draft dictates foreigners pay into social insurance 18Vietnam trails behind Burma in investment attractiveness 19Loss-making SoEs could go bankrupt 19Start-up businesses to get funding from VCIC 20OV scholar suggests shifting to overseas venture investment 21SMEs' responsibility for environment management highlighted 21Strengthening national trademark 22Vietnamese firms urge further cuts to customs red tape 22Footwear manufacturers plan comeback to conquer home market 23Renewable energy will lead the power sector 24Infrastructure attracts investment to north Vietnam 24Japan injects additional capital in Dong Nai province 25Mekong Delta expands farm land toward large-scale production 26Knock-on effects of Can Gio growth 27Numerous low-cost housing projects to be launched in Q2 2017 28

BIZ NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Business Briefs May 03, 2017 30VN Index adds 6.5 points 30Shares rise on investor optimism 31SSI to issue bonds worth 300 billion VND again 32

Kido to acquire Vocarimex's controlling stakes 32PJICO to sell shares to Korean non-insurance firm 33Vingroup targets 40pct revenue growth, lower net income 34Japan supports Petrolimex to produce new-generation fuel

dispensers 34Wood pellet spike in Japan signals potential for Vietnam 3548 million-USD projects set to ensure power supply for Apec 36Hanoi loses VND1,500 billion due to pig price falls 36Higher minimum capital required for private universities 37HCM City's Metro Line No.1 at risk of delay 37Ninh Thuan works on 2 solar power projects 38Tra Vinh attracts additional projects 38Plans weighed to restrict private vehicles in HCM City 38Wind power plant built in Ninh Thuan 39Small production contains commodity-based agriculture 39Tan Son Nhat airspace re-divided to reduce congestion 40Viettel Global expects to acquire 50m customers 40Microsoft Teams launched in Vietnam 41VinaPhone launches 4G in Vung Tau 41FPT to boost cooperation with French firms 42Saigon Co.op retailer expands market share 42The KAfe, Coffee Inn died young, but milk-tea chains thriving 42Vietnam's PV OIL holds 20pct of petroleum retail in Laos 43EVN told to handle loss-making projects 43Viglacera to form joint venture with Cuba 44Toyota Vietnam produces 400,000th car 44Taiwan paper plant red-flagged 45Mekong Delta farmers begin shrimp harvest 46Five measures proposed to save pig-farming industry 47Vingroup puts into operation hi-end golf course in Hai Phong 47Authorities discuss plan to make Saigon a city that never sleeps 47Promoting Vietnam's green brand names 48Long Thanh Golf Course maintains leading position in Vietnam 49Vietnamese high-quality goods fair opens in city 50Hoa Binh businesses look for opportunities in Australia 50Forum discusses developing agricultural products' labels, brands 50Vinh Long expo on industry, trade kicks off 51HCM City to host Top Thai Brands fair 51Workshop on intellectual property rights 52Second Proof of Concept competition kicks off 52Government Inspectorate urged to probe giant pulp project 53Vietnam third most expensive country to buy Starbucks: survey 53Vietnam to import inexpensive US hepatitis drugs 54Vietnam needs IT engineers to meet 4.0 industrial revolution 54Kayak service to resume in Halong Bay 55New water park opens in Quang Ninh Province 56HCM City opens jewellery streets 56

FINANCEFINANCE
Intellasia No. 21, lane 173/63/17, Ngoc Ha Ward, Ba Dinh Dist, Hanoi © All Rights Reserved
Tel: +844 2213 2244Fax: +844 3759 2034

Email: [email protected]: www.Intellasia.Net www.TriTueAChau.com

FIN

AN

CE

Vietnam finance & business 3 May 2017

Banks still yearn for long-term capital

03/MAY/2017 INTELLASIA| DTCK

Though banks said they have gradually restructured and balanced the capital struc-ture in accordance with regulations in Circular No. 06/2016/TT-NHNN on reducing the proportion of short-term capital for medium and long-term loans from 60 percent to 50 percent since the beginning of this year, some banks have still raised their interest rates for long-term deposits, along with preferential programmes and promotions to attract capital.Currently, the deposit rates for long terms of 12 months and above being applied at medium and small scaled banks are about 7.5-8 percent/annum.Besides, in order to attract capital, some banks add the interest rate ranging from 0.5 percent/annum to one percent/annum for customers depositing from one billion dong or above with terms of 13-15 months.Specifically, at NCB, the interest rate for 12-month term is 7.6 percent/annum for indi-viduals and 7.7 percent/annum for 13-month term. The terms of more than 18 months have the interest rate of 7.8 percent/annum, or even eight percent/annum for 24-month term.Similarly, VietABank is also applying the interest rate of 7.7 percent/annum for 13-month term and 7.9 percent/annum for 15-36 month terms. These interest rates are ap-plicable to online savings products and products whose interests are paid at the end of the term.For conventional savings, the interest rate is about one percent/annum lower depend-ing on the term, but the highest rate is still 7.8 percent/annum for long-term deposits.Apart from VietABank, NCB, other small and medium banks such as Viet Capital Bank, VietBank, CBBank, SaigonBank, etc. are also applying competitive interest rates.In Viet Capital Bank, despite a slight reduction in interest rates compared to the begin-ning of the year, the interest rate for 18-month term remains at 7.8 percent/annum. Vi-etBank applies the highest interest rate of 7.9 percent/annum for 13-month term but only for the savings value of 500 billion dong or more.Besides long-term deposits, short-term savings rate of less than one year are also ap-plied by small banks at relatively high level, about 5.5-6.7 percent/annum. Along with that are promotions, gifts, and added interest margin if the deposit value is large.Not to mention, not long ago, to restructure capital under the provisions of Circular 06, many banks have accelerated the issuance of long-term deposit certificates with nearly nine percent/annum interest rate in order to attract idle money from the people in which VPBank's interest rate is nine percent/annum and Sacombank's interest rate is 8.88 percent/annum for 7-year term.As per the State Bank of Vietnam, it is normal for commercial banks to raise or lower interest rates, depending on their business strategies and market conditions. In fact, the liquidity of the banking system is still rather abundant. There is no pressure to raise interest rates.However, according to the weekly monetary market report released recently by Sai-gon Securities Inc. (SSI), interbank interest rates continued to stay high with overnight rates to increase 35 basis points, restoring all falls in the previous week and the highest level in the week was 4.6 percent. The 1-week term also rose 30 basis points to 4.7 per-cent/annum.Thus, after a short period of cooling down, interbank interest rates returned to the 4.6 percent-4.9 percent/annum established since March. Not only the interbank market, interest rates on Market 1 also swelled in short terms.As noted by SSI, interest rates for short terms under six months increased 20 basis points. Specifically, the interest rate for one-month term swelled to 4.7 percent/annum and the interest rate for three-month term improved to 5.7 percent/annum. Mean-while, the interest rate for long terms remained stable at high level.In 2017, the proportion of short-term capital for medium and long-term loans for banks is 50 percent instead of 60 percent as in 2016. Therefore, it is understandable for banks to apply long-term interest rate at high level. Also in Q1/2017, according to reports of some credit organisations in HCM City, deposit rates increased 0.07-0.2 percent/an-num for terms of over 12 months and medium and long term lending rates inched up about 0.03 percent-0.1 percent/annum from the end of last year.This slight adjustment is aimed at restructuring the capital source as well as using cap-ital in line with market developments, ensuring capital adequacy ratios in the opera-tion of credit organisations.Bank leaders say they are gradually lowering the proportion of short-term capital for

Intellasia 3 May 2017 2 / 56

FIN

AN

CE


medium and long-term loans.For example, in Eximbank, Le Van Quyet, CEO of the bank said, as of March 31, 2017, the proportion of short-term capital for medium and long term loans reduced from 55 percent to 45 percent, lower than the level required by the State Bank. The capital mo-bilisation grew 7.7 percent compared to the end of 2016, fulfilling half of the annual plan.Not just Eximbank, the credit growth target of many banks in this year is to promote short-term loans and gradually restructure the capital source to meet the roadmap that at the beginning of 2018, the proportion of short-term capital for medium and long-term loans goes down to 40 percent as prescribed. This is one of the reasons for the in-crease in deposit rates in recent months.Besides, as per experts in the banking sector, another reason for deposit rates to in-crease slightly is that banks need to prepare liquidity well to meet the improving credit demand. Accordingly, credit of the banking sector as of the end of March 2017 swelled more than four percent from the beginning of the year. Banks need to be prepared to meet the capital needs of businesses.In this context, some argue that, the adjustment of deposit rates will lead to the upward trend of lending rates, going against the target of lowering interest rates to support the production and business activities of businesses.However, financial expert Huynh Trung Minh said because of having to compete in-tensely to keep the credit market share, banks will be difficult to raise output rates. In-stead, when mobilising, banks need to calculate how to use this capital source effectively.As per the information about the industry's activity in March 2017 which was recently released by the State Bank, in the first three months of 2017, this agency continued to alleviating operating interest rates through reasonable liquidity regulation to support credit organisations stabilise interest rates; directing credit organisations to cut costs and enhance business effectiveness to strive to reduce lending rates. The market inter-est rates in Q1/2017 were relatively stable.Currently, deposit rates are popularly 4.8-5.4 percent/annum for less than 6-month terms; 5.6-6.7 percent/annum for six months to less than 12-month terms; 6.7 percent-7.4 percent/annum for more than 12-month terms. Besides, lending rates are 6-9 per-cent/annum for short terms and range at 9-11 percent/annum for medium and long terms.

Banks simultaneously report large profits

03/MAY/2017 INTELLASIA| VNEXPRESS

A series of banks have just released Q1/2017 business results with profits ranging from a few hundred billion to trillions of dong.As per Q1/2017's consolidated financial statement released recently by Vietcombank, the bank recorded the after-tax profit of 2.209 trillion dong, up 20 percent year-on-year.Another large bank i.e. Vietinbank also recorded relatively positive consolidated busi-ness result with 2.544 trillion dong pre-tax profit (equal to a year-on-year increase of 5.8 percent) and 2.039 trillion dong after-tax profit.At the end of the first quarter, BIDV's total pre-tax and after-tax profit was 2.277 trillion dong and 1.848 trillion dong respectively, up more than nine percent over the same pe-riod last year.Recording the trillions of dong profits in the first quarter of the year, it is worth notic-ing that bank "giants" are strongly increasing their operating and provisioning expens-es. For example, as the operating cost improved 33 percent (about 3.149 trillion dong), Vietcombank's pre-provisioning net profit only swelled 14.8 percent, reaching 4.137 trillion dong.Similarly, Vietinbank's operating expenses in the period was more than 3.114 trillion dong (up nearly 470 billion dong compared to the same period last year), mainly thanks to the increase in allowances and assets. The bank's credit risk provision in the period was more than 2.064 trillion dong, up 623 billion dong compared to the first three months of 2016.


FIN

AN

CE


In the opposite direction, joint stock commercial banks have been minimising costs. Therefore, the attained profits surged over the same period.Two among joint stock banks that have announced the first quarter business results with impressive figures are Eximbank and Sacombank.At the end of the first quarter, Eximbank recorded 170 billion dong pre-tax profits, five times more than the same period and the after-tax profit remained at 136 billion dong. This was because the bank sharply reduced operating costs by about 20 percent (to 531 billion dong) and the risk provisioning costs dropped as much as 60 percent (133 bil-lion dong).Also thanks to the maximal reduction of operating and provisioning costs that Sacom-bank's pre-tax profit hiked 1.5 times over the same period, hitting 309 billion dong. The after-tax profit was 210 billion dong.VIB also recorded the increase in profits over the same period when attaining 157 bil-lion dong pre-tax profits (up 11 percent) and 125 billion dong after-tax profit.As per the Statistical Forecasting Department (under the State Bank of Vietnam), the capital mobilisation of the entire banking system rose an average of 4.5 percent in Q1/2017, mainly the mobilisation of dong while the foreign currency mobilisation only swelled slightly (less than one percent). The outstanding credit of the entire system is expected to increase only about 4.1 percent.With positive profit figures in the first quarter of the year, a leader of a joint stock bank said the increasing trend of outstanding credit will continue and is one of the factors to forecast a brighter profit picture of banks in 2017.However, he also noted that, it is impossible to ignore the hidden bad debts. "Although many banks have declared the acquisition of debts from Vietnam Asset Management Company (VAMC) in the past year, it is not the reason to ignore measures to prevent future liabilities. Once it comes back, the bad debt settlement will cost a lot more mon-ey", he warned.

Shareholders long for transparent banks


Talking with small shareholders at the recently held general meetings of commercial joint stock banks, Dau Tu Chung Khoan noted that the top concern of shareholders at the moment is not really the dividend payment in cash or in shares. Instead, that is the expectation of a transparent bank that has clear solutions to handle problems.On March 17/2014, the State Bank of Vietnam (SBV) issued Document No.1601/NHNN-TTGSNH regulating the selection of 10 banks to pilot complying with Basel II with two expected compliance timelines including 2015 (for standard method) and 2018 (for advanced method).Accordingly, the 10 banks are piloting to apply Basel II standards and guidelines in 2008-2020 besides a number of banks that were not selected to pilot but are pro-active in implementing it.What shareholders are concerned about is that if being implemented and applied properly, Basel II will help local banks operate more safely, improve their capital use effectiveness and allocate better sources to appropriate risk assets in order to benefit banks and improve shareholders' returns.Besides, Basel II will help improve transparency by setting requirements on disclosure of information such as risk profiles and risk management policies. This will allow shareholders and investors to have more accurate assessments about banks' operation.To meet these requirements, commercial banks have had positive developments in ac-tively assessing real-world disparities with Basel's requirements to develop imple-mentation roadmap and have in reality implemented some projects under the roadmap. However, a shareholder shared "the implementation of Basel II of some banks seems to be more about promoting their image rather than implementing intrin-sically".A senior leader of BIDV said "It is not easy to let every division in a bank to understand the Basel II implementation and cooperate in the implementation. Therefore, the proc-ess may not be as expected".


FIN

AN

CE


Regarding this issue, Nguyen Thuy Duong, deputy CEO of EY Vietnam said "Due to many factors, comparing with the original plan, it is clear that the implementation of Basel II is significantly slower than expected. This delay is partly due to the fact that Basel II implementation faces more difficulties than the original thinking and requires more positive moves from both commercial banks and the State Bank".At the 2017 annual general meeting, ACB CEO Do Minh Toan said regarding loans from six companies related to the former Chair Kien, so far, the bad debt after putting for provision is 1.5 trillion dongIn 2016, the bank collected three trillion dong of debt and put 1.115 trillion dong for provision. Earlier, as per information from ACB's management board, as of December 31, 2015, the total bad debts of these six groups of companies were nearly 5.8 trillion dong, of which the outstanding loans was nearly 1.9 trillion dong, the balance of bonds was 2.7 trillion dong and other receivables were nearly 1.2 trillion dong.As per a leader of a fund management company, ACB's activities will have limitations as long as bad debts are not fully resolved.A similar case is Sacombank related to the merger with Phuong Nam Commercial Joint Stock Bank (PNB). Sacombank's business result and asset quality in 2016 were still neg-atively affected by the acquisition of PNB especially the bad debt issue after merger. The NPL ratio was 5.4 percent at the end of 2016, the highest level in the group of listed banks in the stock market and higher than the system's average.Or in Eximbank, the NPL ratio is also concerned by shareholders when soaring from 1.86 percent at the end of 2015 to 2.95 percent at the end of 2016.Besides, a story that shareholders are concerned about is bank profits still rely heavily on credit, including large banks such as BIDV or Vietcombank. For small banks, inter-est from credit segment may account for 80-90 percent, even off-setting other business losses.This shows that the income from non-credit activities of banks is very modest while profits from credit is potentially very risky, especially when interest rates suffer from increasing pressure as the current moment.

M&A in insurance sector still ongoing


Along with the tendency to acquire shares to transform into 100 percent foreign-owned or domestic insurance companies which is taking place in life insurance join ventures, the insurance market of Vietnam is said to further witness brand transfers in the near future."Mergers and acquisitions (M&A) in insurance industry, for both life and non-life seg-ments, is not only a trend of the foreign market, it will spread to the market of Viet-nam", said an expert.Meanwhile, in the forecasts on the insurance market in 2017, experts in the industry also assessed that M&A remain an important target, as insurance companies are look-ing for other directions to develop.According to an expert, there has recently been some information about M&A of major insurance brands in the European insurance market. However, the information given is only in the form of rumours with an aim to probe the reaction of the market. How-ever, the need to conduct M&A for expansion exists and not only large insurance cor-porations in the Europe but the Asian market is also identified as a destination for this trend.This expert also mentioned that there are different forms to carry out M&A deals in in-surance industry, and one of that is to consider entering new market by setting up a subsidiary and participating in a joint venture with local partners. In addition, raising the limits of Foreign Direct Investment (FDI) in markets such as China and India will also encourage M&A in insurance sector.A few years ago, entering the insurance market by joining into joint ventures with local partners, particularly for banks and multinational corporations, is one of the most prominent trends of the Vietnam's insurance industry, mainly life insurance. Howev-er, the current reality shows that the Vietnam's emerging insurance market has also


FIN

AN

CE


created new foreign insurers new "turns."For example, the new trend is that foreign insurers initially contribute capital and ac-quire all the stake of local partners to become a 100 percent foreign-owned firm. The insurance market in the recent time has witnessed some of the M&A deals like this, such as the deal of Sun Life Vietnam, which has recently become Aviva, etc.Experts recognised that this trend has not stopped in the insurance market of Vietnam. There is currently some information about a Thai insurance financial group negotiat-ing to buy shares of its partners which are insurance firms in Vietnam.Certainly, apart from acquiring stake of partners, there will be M&A deals carried out at corporate or regional levels. These deals will have a certain impact on the develop-ment strategies of insurance firms in local markets, including Vietnam."Acquiring brands with limited market share and poor growth to later invest in brand renewal and wait for the opportunity to resell is a new direction of some financial cor-porations. This trend will occur in many markets, not just the insurance market of Vi-etnam", said an expert.Sharing about the M&A trend in the insurance industry in the near future, CEO of an insurance firm said that if there are M&A deals to be carried out in life insurance mar-ket of Vietnam, the trend of acquiring to own 100 percent stake will be given priority over the trend of forming joint ventures like in the past. This is due to many factors, in which the typical one is the fairly faint development of the life insurance joint ventures in Vietnam, which caused this M&A form of participating in joint ventures to be not popularly chosen by financial groups. Meanwhile, for non-life insurance sector, large financial corporations in the world still want to further pour capital into the firms holding large market share in Vietnam. If foreign investments are made, local non-life insurers will have additional business capital and technical support.

The big players in the fintech market

03/MAY/2017 INTELLASIA| VIETNAMNET

In 2007, the State Bank began testing intermediary payment services. Nine pioneers in the market received licenses to provide services. By February 2017, the number of serv-ice providers had reached 20, each of which targeted specific groups of clients.Vietnam's fintech market has attracted many investors, both foreign and domestic. Chinese Gobi Partners invested in OnOnPay, South Korean UTC Investment in VNPT-Pay, while funds of Exprerian, Kusto Tiger and Unitus Impact and the bank of Sumi-tomo invested in Mobivi. Meanwhile, Viettel injected money into BankPlus and MobiFone into Vimo.Pham Thanh Duc, CEO of MoMo, said with the current technology development, Vi-etnam should have had 20 million mobile payment users and transaction value of $25 million, if referring to the Chinese market.While banks have mobile banking apps that connect users (with bank accounts) and bank services, MoMo allows clients to do the same thing without bank accounts.MoMo identifies accounts via user's phone numbers. Users can cash in from MoMo's outlets or through banks. This money is used for money transfer or payment for serv-ices and goods.In Vietnam, it is a $35 billion market with each remittance of less than VND5 million, according to MoMo survey of post offices, a UN report and Smartlink.MoMo, besides the online transaction system, is also running a physical trading sys-tem with 4,000 transaction points in 45 provinces and cities.Like MoMo, Payoo joined the market very early and has made heavy investment in the transaction network, but unlike MoMo, it focuses on providing payment services for electricity, water and TV bills.According to Ngo Trung Linh, CEO of VietUnion, the company now has 5,000 trans-action points throughout the country. In 2016, total revenue from electricity, water and cable TV bills in large cities was $1 billion, or 10 percent of the market share.Another difference of Payoo is that it doesn't focus on mobile apps, because online services are not enough to attract the majority of internet users, and it also provides


FIN

AN

CE


internet banking and mobile banking services to partners.Internet service groups have also jumped on the bandwagon.In late 2016, ZaloPay wallet of Zion, a subsidiary of VNG, was launched, though it had 123pay payment portal. Integrated with the community of 70 million Zalo chat users, ZaloPay appearsto follow the same way as Tencent with WeChat Pay in China.Two 'unicorns' in SE Garena (game service) and Grab both have joined the payment service market. Garena's Vietnam branch Vietnam eSports in March 2016 launched TopPay e-wallet. Meanwhile, Grab has tried to attract more users to GrabPay.http://english.vietnamnet.vn/fms/business/177285/the-big-players-in-the-fintech-market.html

Banker defends ATM fees

03/MAY/2017 INTELLASIA| DTI NEWS

The general Secretary of the Vietnam Banks' Association Nguyen Toan Thang unsur-prisingly defended Vietnamese banks charging ATM collecting fees after public com-plaints about 25 kinds of under-the-counter fees.It has been said that there are about 25 kinds of fees for basic ATM services that con-sumers aren't informed about. Why do the banks think have the right to impose so many fees?The banks have upgraded technology and provided more varied services to custom-ers. Each service has its own fee that has been calculated carefully. The banks are col-lecting fees to offset their investment. However, customers don't have to pay for services that they don't use.The ATM users normally only have to pay the fees for using the machines and trans-ferring money.Many people have raised concerns about the security and quality of ATM services. For example, ATMs often run out of money, give damaged banknotes or have technical problems during holidays. Is the ATM upgrading process really going to improve service quality and security?The government and the State Bank of Vietnam have repeatedly told banks to improve their banking services including ATM services. The security problem was also dis-cussed during the annual meeting of Vietnam Bank Card Association. The technology is constantly invested in and upgraded.The bank card market in Vietnam has improved. What do you think is the biggest achievements?When Vietcombank issued its first credit cards in 1996, there were only a few ATMs installed for some few hundred card holders. Now there are over 100 banks cards have been issued by 53 facilities. Vietnam has over 17,000 ATMs installed and customers can use the ATMs for inter-banking transactions too. The cards have become a common and familiar means of payment to the public.What should the banks do to further improve their services and technology, especially for the card holders?Policies and legal frameworks for non-cash payments must be more detailed and com-pleted to meet increasing demands from the customers. The banks must focus on building the technology infrastructure and have security measures to make their serv-ices faster and safer.http://www.dtinews.vn/en/news/018/50644/banker-defends-atm-fees.html

Vietcombank plans to divest from some banks

03/MAY/2017 INTELLASIA| INFONET

At the recently held annual general meeting (AGM) of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the bank announced plan to divest part of its investment in other banks.The capital divestment was mentioned at the bank's AGM in 2016 but due to market conditions, this plan still has not been implemented. In 2017, although the specific roadmap still has not been announced, Vietcombank had a clearer plan for invest-ments in other banks.Specifically, the bank plans to retain its stake in Military Joint Stock Commercial Bank


FIN

AN

CE


(MBB). Currently, its ownership rate at MBB is 7.16 percent, and the investment value is 1.243 trillion dong.Meanwhile, the bank is considering to withdraw investment from Eximbank with 8.18 percent stake and investment value of 582 billion dong; Orient Commercial Joint Stock Bank with 4.72 percent stake and investment value of 144.8 billion dong; SaigonBank with 4.3 percent stake and investment value of 123.5 billion dong; Cement Finance Joint Stock Company with 10.91 percent stake and investment value of 79.95 billion dong.Vietcombank estimates to earn about 700 billion dong profits from the capital divest-ment from MBB and Eximbank. However, as there has not had a specific plan, these figures are still estimates only.The meeting approved the plan on separate issuance of 10 percent in 2017 as the issu-ance proposal to GIC last year was not approved by authorities. The reason was the asking price was lower than the market price. This year, the bank's management board sought approval from shareholders for a similar approach with some adjustments, i.e. Vietcombank will focus on capital increase in the form of separate issuance. In case of arising unexpected difficulties, the public offering option can be an alternative.In case of separate issuance, Vietcombank will continue seeking 10 potential investors. The asking price is not less than the valuation from independent consulting unit and is not lower than the market price but also depends on the approval of authorities. The issuance time is expected to take place in 2017-2018.After the issuance of 359.77 million shares, Vietcombank's charter capital will swell to more than 39.575 trillion dong and the Capital Adequacy Ratio (CAR) is estimated at nine percent, up significantly compared to the current level of 6-7 percent (under Basel 2 standard). As per Circulars No.36 and 06, Vietcombank's CAR was 11.13 percent at the end of 2016.Also at the meeting, Vietcombank announced Q1/2017's business result with the pre-tax profit to hike 19 percent year-on-year, reaching 2.737 trillion dong, thanks to the 8.4 percent increase in credit from the beginning of the year.

Vietcombank set to up capital to $1.74 billion

03/MAY/2017 INTELLASIA| VNS

Vietcombank (VCB) shareholders approved the lender's plan to issue an additional 360 million shares, equivalent to 10 per cent of its capital, to expand its charter capital to almost VND39.6 trillion (US$1.74 billion).The shares will be sold either to the public or offered to no more than 10 investors (in-cluding existing shareholders) in a private placement in late 2017 or next year.The selling price will not be lower than the price chosen by a valuation institution and its closing price on the HCM Stock Exchange on the trading day preceding the issuing date.Vietcombank plans to use about VND3 trillion of the proceeds from the issuance to ex-pand lending and other business activities, as well as fund possible mergers and acqui-sitions (M&As).At the bank's annual shareholders' meeting on Friday, its chair Nghiem Xuan Thanh said M&As would be a long-term strategy and should ensure that Vietcombank ex-pands its network and accesses new markets.Regarding this criteria, Thanh said Vietcombank has not yet found suitable partners.Vietcombank has two major stakeholders, of which the State Bank of Vietnam owns 77.11 per cent and Mizuho Bank 15 per cent. Mizuho is the only foreign strategic inves-tor of Vietcombank.In August last year, Vietcombank and Singapore sovereign wealth fund GIC signed an agreement for GIC to acquire a 7.73 per cent stake, equivalent to 305.8 million new shares in the bank's planned private placement of nearly 360 million new share issue.The transaction, subject to approval by the prime minister and the State Bank of Viet-nam, has not taken place as by the end of last year GIC's offer was considerably lower than market value. Thanh said Vietcombank would re-negotiate with GIC for a better price.


FIN

AN

CE


Vietcombank is the most expensive bank on the stock exchange with a share price ranging around VND35,000 ($1.54) a share. It is also the biggest listed lender with mar-ket capitalisation at VND126.3 trillion ($5.6 billion) on Friday.Divestment from other banksVietcombank holds capital in five other credit institutions, three more than allowed by the State Bank of Vietnam.Chair Nghiem Xuan Thanh said the bank would divest from the banks in which its stakes were not high, including Orient Commercial Joint Stock bank (5.07 per cent), SaigonBank (4.3 per cent) and Cement Finance Joint Stock Company (10.9 per cent) for a combined value of about VND300 billion.Vietcombank sought to offload stakes in these institutions last year but failed due to low market liquidity.The lender plans to retain its holding in Military Bank (7.16 per cent) given the bank's positive performance and stable dividend payout. However, it will seek the central bank's approval to divest 8.19 per cent of capital from Eximbank (EIB).Vietcombank's shareholders also approved the 2017 business targets, including grow-ing pre-tax profit by 8 per cent year-on-year to VND9.2 trillion and increasing total as-sets 11 per cent to VND874.6 trillion.The dividend rate will remain at 8 per cent this year.The bank expects to expand its credit outstanding by 15 per cent to VND547.1 trillion, total capitalisation up 14 per cent to VND684.8 trillion and keep the bad debt ratio be-low 2 per cent.In the first quarter of this year, the bank reported pre-tax profits of nearly VND2.65 tril-lion, up 15 per cent year-on-year. Last year, it earned pre-tax profits of over VND8.5 trillion, up 25 per cent year-on-year.http://bizhub.vn/banking/vietcombank-set-to-up-capital-to-174 billion_285828.html

NCB to raise total assets to $4.2 billion


The National Citizen Joint Stock Commercial Bank (NCB) will raise total value of its assets to VND95 trillion (US$4.2 billion) in 2017, up nearly 40 per cent from last year.This was stated at its shareholders meeting on Thursday.The bank's net revenue is expected to reach VND350 billion, up 60 per cent against the previous year. Bad debt rate has been kept at below three per cent.This year, NCB will focus on improving its business model, enhancing risk manage-ment capacity and expanding customer and partner ecosystems.It will select foreign strategic shareholders among its partners, who are interested in adding VND3 trillion more to NCB's charter capital.In 2016, NCB introduced a development strategy for the 2016-20 period and performed impressively.The State Bank has approved NCB's plan to open six more transaction points.NCB's report showed that the bank's total assets were valued at VND70 trillion ($3.1 billion) in 2016, registering a growth of 43 per cent against 2015.Capital mobilisation and lending recorded high growth, hitting over VND18.5 trillion and VND8.9 trillion, respectively.The bank's 2016 revenue reached VND211 billion, 91 per cent higher than 2015. The quality of the balance sheet improved and the rate of bad debt stood at below three per cent.NCB, established in 1995, started off as a bank for the agricultural sector before trans-forming into a commercial bank in 2014.http://bizhub.vn/banking/ncb-to-raise-total-assets-to-42 billion_285818.html

AIA delivers record new business performance for Q1

03/MAY/2017 INTELLASIA| VOV

AIA Group Limited (stock code: 1299) today (April 28) announces record growth of 55 per cent in value of new business (VONB) on constant exchange rates (CER) for the first quarter ended 28 February 2017.Mark Tucker, AIA's Group Chief Executive and President said,"We are pleased to re-


FIN

AN

CE


port that AIA has made an excellent start to the year with record VONB growth of 55 percent to $884 million. This is also the highest quarterly VONB result since our IPO in 2010."AIA continues to deliver a strong track record of year-on-year growth andour dedi-cated teams remain highly focused on building a high-quality, sustainable business for the long term. Today's headline figures reflect our robust operating performance and the consistent execution of our growth strategy over time."I have said many times that the powerful and structural economic, social and demo-graphic changes taking place across Asia present an unparalleled opportunity for AIA. The alignment of AIA's significant competitive advantages developed over its long history in the region with these long-term structural trends means that the Group is exceptionally well-placed to help customers meet their substantial needs for financial protection, long-term savings and private healthcare provision through insurance."We were delighted to announce on 13 March that Keng Hooi will succeed me as Group Chief Executive and President upon my retirement from the Group. Keng Hooi has an outstanding track record of operational execution and strong leadership throughout his extensive experience in Asia."Since the announcement, Keng Hooi and I have been working very closely together to ensure a smooth and orderly transition and I am pleased to report that this process will be completed ahead of plan. As a result, we have announced today that Keng Hooi will formally assume his new role effective from 1 June 2017. I will remain a director of AIA Group Limited, in a non-executive capacity, from then until 31 August 2017."It has been a great privilege to lead AIA and I am enormously proud of the Group's achievements since IPO. AIA is an extraordinary business and I am highly confident that the Group will continue its success under Keng Hooi's leadership."http://english.vov.vn/economy/aia-delivers-record-new-business-performance-for-q1-348583.vov

Moody's and S&P affirms Vietnam's sovereign rating


Two major credit rating agencies, Moody's and Standard & Poor's (S&P), on Friday af-firmed Vietnam's sovereign rating, citing the country's strong foreign direct invest-ment (FDI) inflows, macroeconomic and external stability and modest external debt burden.Moody's affirmed the government of Vietnam's B1 issuer and senior unsecured debt ratings, while it raised the outlook to positive from stable.Moody's B1 rating, four steps below investment grade, is considered relatively stable, with a moderate chance of default.The company also raised its assessment of Vietnam's local-currency bond to Baa3 from Ba1, while the foreign currency bond remained at Ba2.The positive outlook for Vietnam is based on three key drivers, including strong FDI inflows, boosted by ongoing economic reform and liberalisation; macroeconomic and external stability; and the stabilisation of prospective debt and an improved funding profile.Moody's noted that robust FDI inflows will continue to sustain Vietnam's dynamic economic performance relative to similar-rated peers, as it allows Vietnam to diversify its economy and gain market share in international trade.Vietnam has seen significant improvements in the investment climate. Its ranking rose to 60th out of 138 countries in the 2016-2017 World Economic Forum Global Competi-tiveness Index, up from 70th in 2013-14, while its showings in the World Bank's Doing Business Indicators similarly rose to 82nd out of 190 countries in 2017, and from 99th in 2014.Further, Vietnam has become a more important node in the regional supply chain for electronics, especially for mobile phones, as foreign investments have helped to diver-sify the economy towards higher value-added manufacturing. Its market share nearly doubled to 1.2 per cent of world exports in 2016, from 0.7 per cent in 2013.Moody's expected the country's economic growth to remain robust at around 6.3 per


FIN

AN

CE


cent per annum through 2019.S&P Global Ratings on Friday also affirmed Vietnam's long-term 'BB-' credit ratings and short-term 'B' credit ratings with a stable outlook.The ratings have reflected the country's lower middle-income, banking sector weak-ness, and emerging institutional settings that hamper the responsiveness of policy."These weaknesses are offset by Vietnam's external settings that feature balanced ex-ternal accounts, strong foreign direct investment inflows and a modest external debt burden," S&P said in a press release.The rating company said financial and technical assistance that Vietnam has received from donors also contributed to the rating.Its stable outlook reflected the company's expectation that Vietnam's growth prospects will continue to improve, leading to gains in its key economic and fiscal measures, it said.However, it has cautioned that the large fiscal deficit and rising debt burden, with net general government debt at 46.6 per cent of GDP in 2016, signal a further delay in fiscal consolidation. S&P estimates that the fiscal deficits will average 4.9 per cent of GDP over 2017-20, down from an average 6.4 per cent over 2012-16.http://bizhub.vn/news/moodys-and-sp-affirms-viet-nams-sovereign-rating_285840.html

Industrial production index rises 7.4pct in April

03/MAY/2017 INTELLASIA| VNA

The national index of industrial production (IIP) was estimated to rise 7.4 percent in April, reported the general Statistical Office (GSO) on May 1.According to the GSO, in April, the IIP of the mining sector saw a drop of 5.6 percent, while that of the processing and manufacturing industry rose 11.1 percent, the elec-tronic production and distribution was up 9.9 percent, and water supply and waste treatment increased 6.5 percent.In the first four months of this year, the index increased 5.1 percent year-on-year, far below the growthrecorded in the same time of 2016 but higher than the rise of 4.2 per-cent in the first quarter of 2017.In Jan-April period, the processing and manufacturing sector's production surged 9.2 percent and the water supply and waste treatment industry up 6.3 percent, while that of mining fell 9.7 percent.A number of sectors enjoying a surge in the IIP includedmetal production (47.5 per-cent), metal product manufacturing (13.3 percent), weaving (12.5 percent) and engine vehicles (10.9 percent).Meanwhile, industries experiencing slight IIP riseswere food production and process-ing at 6.4 percent;medicine and pharmaceutical chemistry 4.5 percent; and electronic, computer and optical product production 4.2 percent.The northern city of HaiPhong led the country in the IIP growth with 20.4 percent, fol-lowed by Thai Nguyen with 17.7 percent; Da Nang, 12.1 percent; Hai Duong, 9 per-cent;Binh Duong, 8 percent; and Dong Nai, 7.4 percent. Ho Chi Minh and Hanoi rose 7.1 and 5.9 percent respectively.The GSO also revealed that the inventory index of the industry sector as of April 1 was up 12.7 percent over the same time in 2016.Sectors with higher inventorythan the country's average includedengine vehicle pro-duction at 158.9 percent, metal production 54.5 percent, beverage production 45.4 per-cent, non-metal product production (mostly cement) 39.7 percent, and paper and paper product production 32.8 percent.http://en.vietnamplus.vn/industrial-production-index-rises-74-percent-in-Apr/111060.vnp

Consumer price index unchanged in April


The consumer price index (CPI) in April remained unchanged from the previous month, but up 4.3 percent against the same period last year, the general Statistical Of-fice (GSO) announced on April 29.


FIN

AN

CE


The average monthly index in the Jan-April period rose 4.8 percent compared to the same period last year, the office said.Price increases were seen in seven out of the 11 goods and service groups in the price basket, with the biggest hike reported in medicine and health care services (8.05 per-cent), followed by culture, entertainment and tourism and household appliances with the same increase of 0.1 percent, and goods and other services (0.08 percent).Four groups experiencing a price decline were transportation (1.38 percent), food and catering services (0.66 percent), housing and construction materials (0.24 percent), and telecommunication (0.03 percent).According to vice director of the GSO's Price Statistics Department Do Thi Ngoc, the 10.59-percent increase of the price of medical services applied for health insurance buyers made CPI rise about 0.41 percent.Rising tourism demand on the occasion of the national holiday (Reunification day on April 30 and May Day), and the increased consumption of clothes in the summer were also attributed to the increase of prices in the relevant groups of goods and services, Ngoc said.In the month, the average domestic gold prices rose 1.01 percent from March, fluctu-ating around 36 million VND (1584 USD) per tael. Meanwhile the VND/USD exchange rate stood at between 22,600-22,700 VND per USD, down 0.38 percent against the pre-vious month.The core inflation (excluding food and fresh foodstuff, energy and State-controlled commodities such as health and education services) in April rose 0.09 percent from the previous month and 1.5 percent against the same period last year.http://en.vietnamplus.vn/consumer-price-index-unchanged-in-Apr/111007.vnp

Vietnam's inflation under control


The Consumer Price Index (CPI) of April remained unchanged against last month and was 4.3 percent more than last year's same period.The general Statistical Office of Vietnam reported on April 29 that drugs and health-care services saw the biggest surge of 8.05 percent.Among commodities and services having lower CPI, transport services dropped 1.38 percent due to increasing petroleum and oil prices. So far this year, inflation has grown 1.62 percent.Price increases were marked in seven out of the 11 goods and service groups in the price basket, with the biggest hike reported in medicine and health care services (8.05 percent), followed by culture, entertainment and tourism and household appliances with the same increase of 0.1 percent, and goods and other services (0.08 percent).Nguyen Bich Lam, director general of the general Statistic Office of Vietnam, said in-flation has been put under control."We've made scenarios for increasing CPI and service fees. For example, we anticipat-ed how the price hike of electricity and healthcare services will impact the CPI and the economy then consulted the government for proper management. The government has asked ministries and sectors to control inflation as requested by the National As-sembly," Lam said.http://english.vov.vn/economy/vietnams-inflation-under-control-348618.vov

Vietnam records trade expansion in four months


Vietnam's trade revenue is estimated at 125.41 billion USD in the first four months of 2017, a year-on-year increase of 20.1 percent, said the general Department of Vietnam Customs.It consists of 61.34 billion USD from exports, up 15.4 percent, and 64.07 billion USD from imports, up 24.9 percent from a year earlier.Key export commodities include telephones and components, textile and garment, footwear, and transport vehicles and spare parts.In April, overseas shipments of telephones and components were about 3.6 billion USD, rising by 16.4 percent from the previous month. That added up to 11.37 billion


FIN

AN

CE


USD in total exports of these items in four months, up 0.3 percent year-on-year.Although this month's exports of textile and garment dropped 12 percent from March to 1.85 billion USD, it still posted an annual rise of 9.1 percent to 7.47 billion USD be-tween January and April.A monthly decline, 3.8 percent, was also recorded in footwear exports which stood at 1.05 billion USD in April. However, total exports still went up 9.6 percent on the yearly basis to 4.17 billion USD.Meanwhile, main import items were machinery, equipment, tools and spare parts, computers, electronic products and components, fabric, steel, plastics, and garment and footwear materials.In April, the import turnover of machinery, equipment, tools and spare parts fell 0.2 percent month on month to 3.25 billion USD, which totalled 11.32 billion USD in four months up 38.9 percent compared to the same period last year.About 2.85 billion USD was spent to import computers, electronic products and com-ponents in April, representing a 4.6-percent monthly decrease. It is estimated at 10.45 billion USD in the four-month period, hiking 24.7 percent year-on-year.Some 1.6 million tonnes of steel worth 945 million USD were imported this month, re-spectively increasing 8.7 percent and 8.2 percent from March. The import volume has approximated 5.8 million tonnes, down 5.9 percent year-on-year, with turnover of 3.3 billion USD, up 24.7 percent, since the beginning of 2017.Vietnam experienced trade deficit of 800 million USD in April and nearly 2.74 billion USD in fourth months, Vietnam Customs said.http://en.vietnamplus.vn/vietnam-records-trade-expansion-in-four-months/110973.vnp

Low worker productivity weakens GDP growth in Vietnam


During the past three decades, the Vietnam economy has benefited from a transition away from agriculture toward manufacturing and services, and a demographic pow-ered by a youthful population.However, experts at a recent business forum in Hanoi have cautioned that the benefits of a young, growing labour force are slackening with critical labour shortages reported in many key economic sectors and the country needs to tap new sources of growth to replace it.According to official governmental statistics, by 2020 the share of the population five to 19 years of age is projected to drop to 22 percent from the 27 percent it was in 2010 with the median age of 27.4 continuing to inch upwards.According to government projections, the country's workforce is likely to expand by roughly 0.6 percent a year over the next decade, a decline of more than three-quarters that from the annual growth of 2.8 percent experienced from 2000 to 2010.Growth in the work force will still make a positive contribution to the gross domestic product, but markedly less than it did over the past 15 years.The country's recent economic growth has also been propelled by extraordinarily rap-id migration from rural to urban areas from low-productivity agriculture to the higher manufacturing and service sectors.In the absence of any increased labour productivity, the transition from farms to the metropolitan areas would need to double just to offset the slowdown in the gross na-tional product resulting from a smaller and older workforce, said the experts at the conference.The point that the speakers were making is that it is most likely GDP growth in Viet-nam will slow dramatically over the next few years without significant improvement in labour productivity growth patterns within economic sectors.They predicted that annual workforce productivity needs to rise 6.4 percent annually if the country is to achieve GDP growth of 7 percent a year by 2020, the target set at the 11th National Party Congress in January 2011.Domestically oriented companies, such as those in the service or retail sectors, are much more threatened by slower GDP growth in Vietnam than are the multinational


FIN

AN

CE


companies that use the country as an export base for manufactured goods.They also cautioned multinational corporations that have opened production facilities in Vietnam to avoid locking in excess capacity as the country's economy may not match the robust growth trends of the past.Anecdotal and survey evidence consistently indicates that the wage cost advantage of Vietnam that has so often in the past been touted as a significant plus is eroding and multinationals must boost their training costs to improve labour productivity to re-main competitive globally.Multinationals continually complain about a lack of basic work readiness among new recruits in both the manufacturing and service sectors but far too little is being done to address the problem, said the speakers.Many companies in other countries have responded effectively to this problem by pro-viding in-house training both before an employee starts working and while the em-ployee is on the job.They suggested that Vietnam should follow the lead of global best practices and seek to improve competitiveness by providing continued education and training for em-ployees in all sectors of the economy.In addition, they underlined the importance of concentrating on improving long-term value and bottom-line profits rather than, as is customarily done in Vietnam, merely seeking to increase top-line revenue.Too many domestic companies spend too much energy competing on price with far too little emphasis placed on product quality, features, and branding or on developing unique offerings that can command price premiums, said the experts.Local companies must develop better programmes to recruit employees and train them so that their skills and productivity improve, they added.They must learn to take a more professional approach to retaining and promoting their best workers, through incentive packages and greater management autonomy.The notion of increasing the value of each employee's performance is not yet widely understood among even the major Vietnamese companies let alone the small family-owned businesses, which still account for a major part of the economy, the experts con-cluded.http://english.vov.vn/economy/low-worker-productivity-weakens-gdp-growth-in-vi-etnam-348733.vov

Vietnam's exports see positive signs

03/MAY/2017 INTELLASIA| VOV5

The Ministry of Industry and Trade forecasts that Vietnam's exports will grow strong-er in the second quarter, thanks to business reforms and the implementation of free trade agreements.Vietnam earned $45 billion from exports in the first quarter, up 15 percent from last year.This encouraging result is attributed to a surge in the price of key export items includ-ing raw materials, crude oil, farm produce, seafood, and processed products.Exports revenues from major markets like China, Japan, Russia and Asean also in-creased significantly."Businesses should apply advanced technologies and update their management meth-ods. We have signed 17 free trade agreements and are negotiating several others," said Tran Thanh Hai, deputy director of the Export-Import Department of the Ministry of Industry and Trade.The Vietnam-Eurasia Economic Union Free Trade Agreement which took effect last October offers an opportunity for Vietnam's exports to reach a market of 183 million people."We are trying to consolidate existing export markets while seeking new ones. Other important missions include reducing tariffs and remove non-tariff barriers to boost ex-ports," said Nguyen Khanh Ngoc, deputy director of the Europe Market Department.Under the Vietnam-Eurasia Economic Union Free Trade Agreement, both sides will reduce or exempt tariffs on nearly 90 percent of items and open their markets for in-


FIN

AN

CE


vestment and services.The Eurasia Economic Union, which consists of Russia, Armenia, Kyrgysstan, Belarus, and Kazakhstan, is expected to be a lucrative market for Vietnamese apparel, seafood, agricultural products, and footwear.http://english.vov.vn/economy/vietnams-exports-see-positive-signs-348251.vov

Agro-forestry-aquatic product exports hit $10.8 billion


The export value of agro-forestry-aquatic products reached $10.8 billion in the first four months of 2017, a year-on-year surge of 9.1 per cent, the Ministry of Agriculture and Rural Development said.Key farm produce contributed $5.8 billion to the export value, up 12 per cent from the same period last year. Some 1.86 million tonnes of rice, worth $834 million, were shipped abroad, down 7.7 per cent in volume and 6.9 per cent in value compared with the same period last year.The country raked in $1.34 billion from exporting 592,000 tonnes of coffee, represent-ing a decrease of 10.6 per cent in volume but a rise of 19.2 per cent in value year-on-year.Exports of wood and wooden products brought home $2.4 billion in the four-month period, rising 12.7 per cent over the figure of 2016. The United States, China and Japan remained Vietnam's largest import markets.During the period, Vietnam also shipped aquatic products worth $2.1 billion abroad, achieving a growth rate of 8.2 per cent year-on-year.Meanwhile, vegetable and fruit exports witnessed a year-on-year hike of 32.6 per cent in export value to $1 billion. The four largest import markets were China, the United States, Japan and the Republic of Korea.Vietnam spent $8.52 billion to import agro-forestry-aquatic products from other coun-tries, up 21.4 per cent from last year's figure.http://bizhub.vn/news/agro-forestry-aquatic-product-exports-hit-108 billion_285819.html

Garment exports grow despite hurdles


The domestic garment industry has faced many challenges in exporting to key mar-kets, such as the European Union (EU) and the United States, but it still has a chance of achieving its export target this year, according to experts.First quarter figures appear to support this expectation. Vietnam earned 6.84 billion USD from garment and textile exports in the first quarter of this year, 11.2 percent more than in the same period last year, according to the Vietnam Textile and Apparel Association (VITAS).Vietnam's textile and apparel sector has set a target of seven percent growth over 2016, with total export earnings of over 30 billion USD.Currently, Vietnamese garment and textile products are available in 40 countries and territories, with major markets including the United States, Japan, the Republic of Ko-rea, China and the EU. VITAS has urged enterprises to optimise the capacity of their equipment to reduce production costs and seek orders for high-quality products.But Dang Phuong Dung of the VITAS advisory board said the growth of export value and volume to the EU was low, with local manufacturers receiving only small orders. Vietnam's garment industry has also not developed in terms of design, so most textile and garment enterprises have found it difficult to complete export orders from this market.A high import tax rate of 8-12 percent to the EU market is also one of the obstacles fac-ing garment exporters to this market.The EU is the second largest export market of Vietnamese garment products, but it has only captured a 1.9 percent share of the union's total import value, according to the as-sociation, presenting opportunities for growth.However, Dung said, meeting the rules of origin under the EU-Vietnam Free Trade Agreement in terms of preferential tax rate would be the biggest challenge for Viet-


FIN

AN

CE


namese garment exports.The garment industry expects Asean countries, including Vietnam, to sign an FTA be-tween the Asean region and the EU, and then local garment enterprises would have more options to get material for garment production from other Asean countries, meeting rules of origin under the FTA.According to data of the general Department of Customs, in 2016, the textile and gar-ment sector reached total export value of 23.8 billion USD, an increase of 4.6 percent year-on-year. In particular, the United States continued to be the largest export market of Vietnamese garment products, accounting for 48 percent of the total garment export value. The textile and garment export to the United States has increased by 12-13 per-cent in value each year in recent years.Many enterprises invested in building textile and dying factories on an extensive and intensive scale to boost opportunities in production and business for the planned Trans-Pacific Partnership (TPP), according to the association.But now that the TPP with the United States' withdrawal is no longer in the cards, ex-perts say these facilities would help the textile and garment industry complete produc-tion processes and actively source material, focusing on the significant opportunities offered by other FTAs, such as the EU-Vietnam and the Vietnam-Republic of Korea FTAs.http://en.vietnamplus.vn/garment-exports-grow-despite-hurdles/111050.vnp

Quang Ninh's exports increase by 5pct in first months of 2017


Total export turnover of the northern province of Quang Ninh hit 461.3 million USD in the first four months of 2017, making up 28 percent of the yearly plan and up 5.3 percent from a year ago, according to the provincial Department of Planning and In-vestment.In April also, the province earned 130 million USD from exports.Coal export brought home 59.7 million USD from shipments of 455,000 tonnes.Other export goods seeing increase included cement, up 32 percent; wolfram, 19.1 per-cent; textiles, 14.4 percent; and vegetable oil, 9.2 percent.Imports of local businesses were valued at 128.31 million USD in April, adding up to 496.4 million USD in total imports in the January-April period, down by 24 percent compared to the same period last year.http://en.vietnamplus.vn/quang-ninhs-exports-increase-by-5-percent-in-first-months-of-2017/111083.vnp

Vietnam's cement, clinker exports to Peru, Sri Lanka remarkably grow in Q1

03/MAY/2017 INTELLASIA| TUOITRE NEWS

Peru and Sri Lanka have emerged as potential markets for Vietnamese cement and clinker, reporting remarkable import growth in the first quarter of 2017.According to the Vietnam National Cement Association (VNCA), apart from the tra-ditional markets of Bangladesh and the Philippines, Vietnam's cement and clinker manufacturers have been exporting more products to Peru and Sri Lanka.In the first three months of 2017, Peru imported close to 197,000 metric tonnes of ce-ment and clinker from Vietnam, up 50 percent against the same period of last year.Vietnam's Q1 cement and clinker shipments to the South American country were val-ued at $9.13 million, 43 percent more than the 2016 figure.Meanwhile, Sri Lanka imported $3.34 million worth of cement and clinker from Viet-nam in the first quarter of 2017, surpassing 2016 by over 20 percent.In terms of quantity, the South Asian country have also bought over 30 percent more of cement and clinker from Vietnam since the beginning of 2017 than they did in the same period of last year.At the same time, however, Vietnam's cement exports to other markets such as Aus-tralia, Laos, Cambodia and Malaysia have experienced significant drops of between 30 and 60 percent in the period, the VNCA noted.Increased exports to Peru and Sri Lanka were therefore the 'savior' for Vietnam's ce-ment industry in the current time of tremendous hardship, the VNCA said.


FIN

AN

CE


Basic salary to rise to VND1.3 million from early July

03/MAY/2017 INTELLASIA| THE SAIGON TIMES

The monthly basic salary for civil servants and public employees will increase 7 per-cent to VND1.3 million (about $57.2) from the current VND1.21 million from July 1, ac-cording to Decree 47/2017/ND-CP issued on April 24 by the government.The new basic salary, which is used for calculating payrolls and allowances, will be ap-plied to public officials, public employees working in agencies and civil service pro-viders of the Vietnam Communist Party or the government, state-funded socio-political organisations and the armed forces.The ministries, ministerial-level agencies and other government agencies will have to use the unused budget for wage reform in 2016, State budget estimates and public in-comes to cover the pay raise in 2017.Meanwhile, provinces and cities under the central government will use 10 percent of their regular expenditures (excluding salaries and salary-based allowances), part of public incomes, 50 percent of increased local budget and unused budget for salary re-form in 2016 (if any) for the increase.Localities having limited budgets will receive additional support from the govern-ment. After using all of the above sources but still lacking money for salary payments, such localities will receive extra money from the State budget.http://english.thesaigontimes.vn/53695/Basic-salary-to-rise-to-VND13 million-from-early-July.html

Vietnam second most attractive SEA destination for foreign investors

03/MAY/2017 INTELLASIA| VN ECONOMIC TIMES

Vietnam is the second most attractive investment destination in Southeast Asia, fol-lowing Myanmar, according to a Grant Thornton Vietnam survey.Released on April 28, the survey on private investment revealed that 72 per cent of re-spondents said that the level of investment attractiveness in Vietnam was "Attractive" or "Very Attractive", similar to results in 2016. It was rated as "Very Attractive" by only 2 per cent of respondents, however, down 7 per cent from the previous survey.Myanmar occupies the highest position, with potential from rapid economic growth, infrastructure, new investment laws, and many incentives for foreign investors.Vietnam attracts foreign investors on account of its human resources, low labour costs, and the strong growth in its middle class.Vietnam still has barriers to investment, however, of which corruption is a serious im-pediment. The country is not expected to make a breakthrough in fighting corruption in its public sector and investors are concerned about the state of political interference, "lubrication", and weak enforcement and inconsistent interpretation of laws.Infrastructure is also an obstacle identified by foreign investors, as there are a large number of transport projects with high levels of investment capital but having little positive effect.Foreign investors said that State-owned enterprise equitisation is a source of invest-ment for them. Only 55 enterprises out of 430 have been successfully equitised, how-ever, which is less than in 2015, when 220 were equitised.Foreign investors say that equitisation creates various opportunities to approach Viet-nam in major sectors such as telecommunications, petroleum, infrastructure, and re-tail.Food and beverages and retail remain the most attractive sectors, according to the Grant Thornton Vietnam survey.http://english.vietnamnet.vn/fms/business/177585/vietnam-second-most-attractive-sea-destination-for-foreign-investors.html

HCM City sees breakthrough developments


The southern metropolis of HCM City has gained significant socio-economic accom-plishments since the liberation of the South and national reunification on April 30, 1975.Over the past 42 years, HCM City has made remarkable contributions to national building, defence, industrialisation, modernisation, and international integration.


FIN

AN

CE


The city was one of few localities in Vietnam to record double-digit growth for many consecutive years from 1991-2010 thanks to the creative implementation of the Party's guidelines on developing the socialist-oriented market economy.It recorded annual average growth of 9.6 percent between 2011 and 2015, 1.66 times higher than the national average.In 2016, the city achieved economic growth of 8.05 percent. The economic structure was shifted to services and industry-construction, which made up 54.8 percent and 28.76 percent of the municipal gross domestic product (GDP) respectively. The agri-cultural sector only comprised 0.8 percent of GDP.HCM City has long been one of the most attractive foreign direct investment (FDI) des-tinations.In 2016, the city lured $3.7 billion, raising total FDI to approximately $41 billion, with 6,485 foreign investment projects.The FDI sector contributed 23.8 percent to the city's GDP.Per capita GDP increased to $5,428 in 2016 from $712 in 1995-1996.HCM City is considered a bridge connecting the southern region with the south central and Central Highland regions and plays a crucial role for the development of the southern key economic region.These achievements were attributed to the city's focus on planning urban areas, indus-trial and processing parks, and developing transport infrastructure.The southern economic hub has also made strides in culture, society, education-train-ing, and human resources.It is one of the leading localities in national universal secondary education.The healthcare system has been developed with the increasing use of modern technol-ogies in medical examination and treatment.So far, 54 out of the 56 communes in the city have been recognised as new-style rural areas.http://english.vov.vn/economy/hcm-city-sees-breakthrough-developments-348575.vov

Draft dictates foreigners pay into social insurance

03/MAY/2017 INTELLASIA| VIR

All foreign employees in Vietnam with work permits, practice certificates, or practice licences issued by local authorised agencies will be subject to compulsory social insur-ance payments if a new draft decree is approved.The Ministry of Labour, Invalids and Social Affairs (MoLISA) has publicised a draft decree guiding the application of compulsory social insurance to foreign citizens working in Vietnam. Under the draft, starting from January 1, 2018, foreign employees would have to participate in compulsory social insurance, and pay insurance premi-ums based on their salaries, allowances, and other additional amounts carved in their labour contracts.Specifically, the employees would be required to pay 8 per cent of their monthly sala-ries for the company's pension and death gratuity funds, while the employers would have to make monthly fund payments of 14 per cent.The new draft decree details the implementation of several articles in the 2014 Law on Social Insurance, which requires foreign employees with work permits, practice licenc-es, or practice certificates to have mandatory social insurance packages. This contra-venes the 2006 Law on Social Insurance, which states that foreign employees in Vietnam are free from any mandatory or voluntary social insurance.According to MoLISA's Department for Employment, the reason for requiring foreign employees to participate in compulsory social insurance in Vietnam is that their pop-ulation has greatly increased, from 63,557 in 2011 to 83,046 last year. Of this number, those with short-term work permits of less than one year account for only 4.4 per cent.The number of foreign employees in Vietnam will likely climb in the future due to the country's deepening international integration, especially the free trade agreements with 55 partners most notably the loosening restrictions on the movement of skilled employees between Asean members under Asean Economic Community commit-


FIN

AN

CE


ments. This is the motivation behind the draft decree, according to MoLISA.However, the regulation received censure from some experts familiar with foreign em-ployment issues in Vietnam.Quach Thi Nhung, head of Human Resources at South Korean garment maker KJ Vina in the southern province of Binh Duong, told VIR, "This regulation will be a new bur-den for both foreign employees and their bosses. It is just like a type of new tax."If this regulation is installed, South Korean experts working at KJ Vina would have to pay more than VND100 million ($4,545) per year into pensions and death gratuity funds, in addition to a large sum that the firm would have to contribute, covering the 14 per cent co-pay.Currently, these experts like all foreign employees in Vietnam are not subject to any social insurance requirement.Nguyen Viet Ha, managing director of the Vietnam Office of US-backed investment consultant BowerGroupAsia Inc, told VIR, "The regulation could prevent Vietnam from attracting skilled experts and high-quality employees."The regulation could also discourage foreign investors from investing in Vietnam be-cause it would increase the costs for hiring foreign employees [with unique, irreplace-able skills]. This would also make Vietnam's investment climate less attractive," Ha added, drawing on her 20 years of experience with local labour issues.Under the existing Labour Code's Article 170, foreign employees in Vietnam must be highly trained and skilled, such as managers, experts, and skilled employees whose la-bour cannot be replaced by the local workforce. Their work permits are restricted to two years.By Ha's reasoning, the application of compulsory social insurance to foreign employ-ees who will be in Vietnam for a short period of time is quite irrational. They would not be able to enjoy the pensions they would be forced to contribute to though they likely would receive some allowances once they finished their local work term."Many foreign employees in Vietnam also have to pay for their social insurance pack-ages in their home countries, while they would still have to do the same in Vietnam without being able to enjoy pension benefits or their equivalents. That's unfair," Ha said.http://www.vir.com.vn/draft-dictates-foreigners-pay-into-social-insurance.html

Vietnam trails behind Burma in investment attractiveness


Vietnam ranks second in Southeast Asia behind Myanmar in terms of attractiveness to foreign investors, shows a just-released survey.A report on private investment by Grant Thornton Vietnam revealed that 72 percent of respondents agreed that Vietnam is attractive to investors. However, the percentage of respondents evaluating the business environment as "highly attractive" has tumbled to 2 percent, a reduction of seven points against last year.Myanmar took the lead due to the rapid economic growth rate, infrastructure and new investment law favouring foreign investors. Meanwhile, Vietnam holds the advantag-es of human resources, low labour costs and a fast-expanding middle class.However, investors in Vietnam struggle with problems like corruption, bribery, polit-ical interference and inconsistent interpretation of laws and regulations. Besides, inad-equate infrastructure coupled with bureaucracy and administrative procedures have discouraged investors in the country.The report also showed that food and beverage and retail are the most attractive sec-tors to foreign investors.The lower-than-expected pace of State-owned enterprise restructuring is another ob-stacle. In 2016, only 55 State-owned enterprises were equitised successfully, compared to 220 enterprises that went public in 2015.Experts and foreign investors see the equitisation of State-owned enterprises creating lucrative investment opportunities.http://english.thesaigontimes.vn/53702/Vietnam-trails-behind-Myanmar-in-invest-ment-attractiveness.html


FIN

AN

CE


Loss-making SoEs could go bankrupt


Loss-making enterprises that are not eligible for privatisation must strictly carry out restructure, merger or bankruptcy.Minister of Industry and Trade Tran Tuan Anh has promulgated Directive No. 05/CT-BCT on rearrangement and renewal of State-owned enterprises in the 2017-20 period.Accordingly, the ministry asked its SOEs, corporations, one member limited compa-nies and representative units of State capital to prepare plans and a roadmap for firms' rearrangement and divestment during the period, which must be submitted to the ministry for approval in May.In particular, four State groups Vietnam National Oil and Gas Group (PetroVietnam), National Coal and Mineral Industry Group (Vinacomin), Vietnam Chemical Group (Vinachem) and Electricity of Vietnam (EVN) are required to submit their restructure plans.In addition, the groups were asked to carry out privatisation at their member units fol-lowing approved process and plans as well as current laws and regulations.The directive also asked the groups to enhance management, supervision and checks to prevent huge loss of State capital and assets in their rearrangement, privatisation and divestment."The State-owned enterprises should clarify responsibilities of relevant organisations and individuals in the process of privatisation and divestment. The representatives of State capital at the companies must strictly carry out the rearrangement," it said.The ministry will also review criteria to classify State-owned firms under Decision 58/2016/QD-TTg, promulgated by the prime minister to build specific plans and a road-map for the sale of State capital in the 2017-20 period.In addition, the ministry has been advised to transfer State capital at its businesses to the State Capital Investment Corporation and carry out asset evaluation.https://m.vietnambreakingnews.com/2017/05/loss-making-soes-could-go-bankrupt/

Start-up businesses to get funding from VCIC


Start-up businesses that focus on green growth will have the opportunity to receive funding and access to comprehensive business development support services from the Vietnam Climate Innovation Centre (VCIC).The announcement was made by Pham Duc Nghiem, VCIC's deputy director at the launch of a contest named "Proof of Concept", sponsored by the World Bank and Min-istry of Science and Technology, held in Hanoi on Friday.Specifically, start-ups would receive funds amounting to $75,000 for the development, deployment or extension of a product or service, he said.In addition, sponsored businesses will also receive VCIC's counselling from the initial stage to the market development phase.Innovative products, services, or business models can be included in VCIC's second contest in the following categories: effective energy, sustainable agriculture, water management and purification, renewable energy technologies, technology informa-tion and other technologies related to climate change."This is an opportunity for start-up projects to reduce the impact of climate change on the environment, as well as an opportunity to showcase the potential of Vietnamese companies in the field of technology to cope with climate change," Nghiem said."These companies are in the best position to provide innovative solutions to fight cli-mate change, because they know better than anyone else about the difficulties, chal-lenges and potential of the locality. It will help them come up with good ideas to improve the local economy and create more jobs," he added.Climate change is increasingly attracting the interest of the international community.As one of the five countries most vulnerable to climate change, the Vietnamese gov-ernment has been implementing a number of policy and action programmes to strengthen national capacities to adapt and respond effectively to climate change and reduce greenhouse gas emission.The Ministry of Science and Technology expects that VCIC will create the foundation


FIN

AN

CE


to help businesses identify business models and commercialise their products to cope with climate change.VCIC will also organise seminars to call for ideas in Hanoi, Da Nang and HCM City to provide more information for businesses who want to join the contest, Nghiem said.At least 18 enterprises received funding from VCIC in the first contest in 2016.Their projects included a car sharing solution to save costs and help passengers access transportation services, an automatic unbaked brick molding chain and bio-produce for agriculture.http://bizhub.vn/news/start-up-businesses-to-get-funding-from-vcic_285842.html

OV scholar suggests shifting to overseas venture investment


A Vietnamese scholar in the Netherlands suggested Vietnam shift to venture invest-ment abroad rather than relying on developing the intellectual-based economy at home during a seminar recently held in Geneva, Switzerland.According to Dr Hoang Ngoc Giang, lecturer at Utrecht University of the Netherlands and former independent advisor to several venture investment funds in Switzerland, the Vietnamese economy is focusing on attracting foreign capital to facilitate technol-ogy transfer and send experts abroad for studies, and has recently embarked on a plan to develop itself into a start-up nation.However, he described this approach as unfeasible, reasoning that four major pillars of Vietnam's intellectual-based economy, including education-training, innovation eco-system, information infrastructure, economic climate and social institutions, re-main insufficient and weak.In his suggestion, the top priority should be given to technology because it is the great-est source of added value in the future. In spite of requiring long-term capital (5-10 years) and exposing weak liquidity and high risks, it will bridge development gap and bring strategic interests to Vietnam regarding governance skills and competiveness learnt from the most developed economies.He proposed that direct outbound investment could be made by sending the most ex-cellent intellectuals abroad to nurture and commercialise inventions, providing aid for successful start-ups to join relevant overseas competitions, and pouring capital into start-up ideas by Vietnamese students and workers in host countries.Indirect investment could be made by contributing capital to overseas venture invest-ment funds and start-ups, he said.In order to utilise linkage between overseas venture investment and domestic manu-facturing, he called attention to drafting a detailed plan on venture investment abroad, arranging human resources and capital to build a start-up ecosystem, establishing a Vietnam venture investment fund abroad, prioritising agricultural and processing technology projects, and screening relevant start-ups.http://en.vietnamplus.vn/ov-scholar-suggests-shifting-to-overseas-venture-invest-ment/111081.vnp

SMEs' responsibility for environment management highlighted


A workshop on pollution control and corporate social responsibility of Vietnam's small- and medium-sized enterprises (SMEs) took place in Hanoi on April 28.The event was co-held by the Research Institute for SMEs (RISME) to discuss challeng-es and opportunities of the country's SMEs in complying with environment protection laws and map out policy- and technology-related measures to help them improve ca-pacity of pollution control and environment protection.Addressing the workshop, Pham The Hung from the RISME said the SMEs today are demanding more access to environment management information and training cours-es on environment management to learn about legal environment requirements.Aside from training courses, associations and research institutes should design other kinds of support for the enterprises in the field, he said.Hung cited the fact that the enterprises have struggled to ensure the environmental laws are enforced due to a lack of knowledge on the laws and human resources capa-


FIN

AN

CE


ble of environment management in line with limited funding and outdated technolo-gy.Furthermore, little support from the government and unstable legal regulations in the matter have posed difficulties for the enterprises to act within the law, putting them at risk of being fined or suspended for breach of environment regulations, he added.Meanwhile, director of the Centre for Environment and Community Research (CECR) pointed out that many firms have not paid enough attention or neglect training cours-es on pollution control technology and solutions, even though most of which were free. They appeared to prefer those on taxation and customs procedures.Surveys indicates that big brands or foreign-invested firms, like Vinamilk, Dow and Pepsico, have complied with the laws better and put many efforts in energy saving, waste recycling and wastewater treatment.The training courses on corporate social responsibility and legal environment manage-ment need to provide the SMEs with clear benefits, for example, environment-related benefits that help them enhance power and performance efficiency, save cost and bring better opportunities.http://en.vietnamplus.vn/smes-responsibility-for-environment-management-high-lighted/110977.vnp

Strengthening national trademark


The National Trademark Programme, which focuses on quality, renovation, creativity, and leading capability, intends to promote national images through product brand names.In global integration, developing a national trademark in the domestic and foreign markets is decisive in competing with foreign products.The national Trademark Programme has carried out activities to promote trademarks and help enterprises improve business management, enhance marketing, and compet-itiveness.International integration and participation in free trade agreements have opened new opportunities for Vietnam's economy.President Tran Dai Quang told enterprises who won the National Trademarks recog-nition for 2016: "In order to improve competitiveness in international integration, it's necessary to develop a national trademark.It requires efforts of the business community to obtain production goals and improve product quality so we can win both the domestic and overseas markets."Vietnamese enterprises have actively engaged in building their brand names, contrib-uting to promoting Vietnam's trademark. Vu Van Thanh, deputy director of Hoa Sen Group said, "The National Trademark Programme has generated conditions for enter-prises to improve their trademarks. Obtaining the national trademark recognition helps us promote our products in the domestic and overseas markets."In the international market, Vinamilk ranks 20th in the top 300 most dynamic compa-nies in Asia. Trung Nguyen Coffee has over 1,000 facilities in Vietnam and other coun-tries. They have brought Vietnamese products closer to consumers worldwide.http://english.vov.vn/economy/strengthening-national-trademark-348607.vov

Vietnamese firms urge further cuts to customs red tape

03/MAY/2017 INTELLASIA| VNEXPRESS

'It's not just customs procedures; unofficial fees to complete administrative procedures quickly and conveniently are rife across all sectors.'Vietnamese companies still have to pay unofficial fees to get through customs proce-dures, and many are calling for the procedures to be simplified, the Vietnam Chamber of Commerce and Industry (VCCI) said recently.Customs has made significant reforms to facilitate import-export activities over the past years and is at the forefront of applying information technology to administrative procedures, said Hoang Quang Phong, vice president of VCCI.A VCCI survey on customs procedures found that 31 percent of businesses had to pay under-the-table payments to clear customs procedures, up from 28 percent in 2016,


FIN

AN

CE


while nearly a third of respondents said they were treated unfairly if they refused to pay the fee.The survey, the fourth conducted so far by the VCCI in cooperation with the general Department of Customs, sent questionnaires to 3,500 import-export enterprises na-tionwide, and more than 1,000 responded."It's not just customs procedures; unofficial fees to complete administrative proce-dures quickly and conveniently are rife across all sectors," said Dau Anh Tuan, head of the VCCI's legal department.A representative of a business association in Hai Phong City called for amendments to customs policies to be better communicated to businesses that are struggling to keep up with the changes.As many as 93 percent of firms viewed changes to customs policies and regulations as positive over the past five years, and nearly all respondents expressed satisfaction, saying they could easily find the information they needed on the customs website, ac-cording to the report.However, most firms also said specialised checks were complicated and sometimes overlapping, while eight in 10 firms said the waiting time was too long and put a bur-den on their firms.In response, Kim Long Bien, a senior manager at the general Department of Customs, said the customs agency is on track to reducing clearance times and the number of spe-cialised inspections. It is also simplifying administrative procedures while digitising import-export procedures, customs clearance and tax payments for businesses."We will take concrete action to make changes happen," Bien said, adding that Viet-nam aims to break into the top four countries in Southeast Asia when it comes to cus-toms services.http://english.vov.vn/economy/vietnamese-firms-urge-further-cuts-to-customs-red-tape-348721.vov

Footwear manufacturers plan comeback to conquer home market


Though only around 10 Vietnamese footwear brands exist in the home market and each holds a modest 2 percent of market share, the products have begun conquering the local consumer market.With mid-range prices, and a design centre and workshop in Brazil, Vascara has great advantages in the Vietnamese market.As the brand has become better known to youth in Vietnam, Vascara has opened over 80 shops in large cities and provinces.More and more 100 percent Vietnamese brands have appeared in the market recently. However, the investors prove to be wise enough to give 'western' names to their brands, such as Dolly, Juno, Sablanca, Bejo, Mirrabella, Hodono and Evashoes, to avoid repeating the mistakes made by predecessors such as Hanh Dung, Hong Thanh and Dong Hai.The common characteristic of Vietnamese brands is that they target ordinary people with mid-range prices and avoid the high-end market, where small and medium en-terprises don't have advantages.A branding expert commented that Vietnamese brands won't have many opportuni-ties to succeed in the high-end market, because consumers won't pay high prices for Vietnamese brands. High income earners spend big money to show off their class, and Vietnamese brands don't help them do this.Vietnamese brands have attracted consumers in the mid-end market segment thanks to high quality and reasonable prices. Domestic manufacturers have high skills as they have been doing outsourcing for foreign brands for many years.However, since most Vietnamese brands target the mid-end market segment, the com-petition among them is stiff, especially when foreign brands target the market segment that includes Zara, H&M, Top Shop and Uniqlo.Do Thai Thuc Uyen, manager of Mirrabella, said business performance is satisfactory with the growth rate of 10-15 percent because its holding company does outsourcing


FIN

AN

CE


for its foreign partner.The big problem now for Mirrabella is in the development of the distribution network. Since the retail premises rent is high and Mirrabella is just a small brand, it is difficult for them to enter large shopping malls. They have had only three shops after three years of development.Janny Thuy Tran, director of Vertex Co, said that there was no big difference in the quality and design among Vietnamese brands. The competitive edge lies in financial capability which helps brands advertise their products.Juno shows the power of financial capability. Juno has been in the market for 10 years, but it became well known only in the last two years after receiving investment from Seedcom in finance and technology.http://english.vov.vn/economy/footwear-manufacturers-plan-comeback-to-conquer-home-market-348685.vov

Renewable energy will lead the power sector


Renewable energy will lead the energy sector in the next 20 years and the production cost of renewable energy is gradually approaching that of traditional energy, heard a conference on energy solutions for Vietnam held by general Electric Company (GE) in Hanoi on April 27.Andres Isaza, vice president and chief commercial officer of GE Renewable Energy, said there are three trends in the energy industry: technological change, scattered elec-tricity production and reduction of CO2 emissions.Digital technology with data analysis software and modern hardware will provide sta-ble power supply at more reasonable costs.In addition, the trend toward scattered electricity generation, in which power plants are not centralised at certain areas but located near sources of electricity consumption, will also change the energy sector. Consumers have become electricity producers as more and more individuals and organisations install and operate their own power generation units. Therefore, power firms will face many challenges due to profit de-creases.In the third trend, the world's electricity industry is required to slash CO2 emissions by using modern technology. In December 2015, as many as 196 countries signed the COP21 Paris agreement to keep global temperatures in this century at no more than two degrees Celsius above the average in the pre-industrial era.Vietnam will be directly affected by these changes, said Isaza, and gas power will ac-count for a greater part of the country's power sector and renewable energy will grow faster than traditional energies.According to Isaza, new technology has helped reduce the cost of renewable energy production and in the next 20 years, renewable energy will contribute 60 percent to growth in the electricity sector.Wind power is a source of renewable energy in which Vietnam has advantages, but the government needs to issue policy incentives and create favourable conditions for this sector to grow and contribute to the development of the electricity industry.http://english.thesaigontimes.vn/53688/Renewable-energy-will-lead-the-power-sec-tor.html

Infrastructure attracts investment to north Vietnam


The newly established five modal (rail/road/air/river/sea) infrastructure network has brought a great deal of investment to the Red River Delta, especially Hai Phong, dele-gates told a recent seminar held in HCM City.Hans Kerstens, international business development manager at Deep C Industrial Zones, said in the last five years, the north has become the most popular investment destination for foreign companies.Almost 60 billion USD has been invested there since 2011, outperforming the south by nearly 9 billion USD, he said.Availability of prime industrial land adjacent to the new infrastructure developments


FIN

AN

CE


in combination with reliable power, water, wastewater treatment and, unconditional-ly, the best tax package available in Vietnam are some of the reasons why many more investors have decided to come here, he said.Vu Duy Mat, deputy director of the Cat Bi International Airport in Hai Phong, said the airport, upgraded last year, has been a success story in terms of both passengers and cargo.In the first quarter of this year passengers and cargo throughput increased by 47 per-cent and 48 percent year-on-year.The presence of a second airport (besides Noi Bai Airport in Hanoi) capable of han-dling cargo via international routes is an imperative to comfort investors in the mobile phone and electronics business, he said.Pham Hai Manh of the Ministry of Transport's Maritime Project Management Unit said a major game changer in the north has been the construction of the new Hai Phong International Gateway Port (also known as Lach Huyen Port).Until recently, Hai Phong only had a port with a limited draft of seven metres. The new Lach Huyen Port, which will become operational next year, will allow vessels with a draft of 14 metres or 100,000dwt to berth in Hai Phong, eliminating the need to tran-ship from places like Singapore or Hong Kong and reducing the time to markets.Hai Phong in particular has received a lot of interest among foreign investors, Do Trung Thoai, Chair of the Hai Phong Economic Zone Authority, said.It is home to 490 FDI projects worth almost 14 billion USD by some major players like LG, Bridgestone, Knauf, Regina Miracle, Nipro Pharma, and Flat Glass.The integrated infrastructure, especially the transport system, has been one of the big-gest factors in this.Its investment environment too has greatly improved, especially in terms of adminis-trative procedures, enabling businesses to get licences and customs and tax declara-tions faster, he said.He expected the investment wave in the city to strengthen further when large national transport infrastructure works are completed soon.He hailed the active support offered by local authorities to investors.The province has approved a list of projects requiring FDI investment in 2016-20, with a focus on environment-friendly ones, he said.Kerstens said investors in the Deep C Industrial Zones can enjoy the convenience of transportation by sea, road, rail, and air.They have so far attracted over 3 billion USD worth of investments from various coun-tries in 70-odd projects.The zones support customers by providing an integrated support package in an un-conditional and transparent way to allow them to do business hassle-free, Kerstens said.Nearly 100 business people attended the seminar on "Mega Infrastructures Make Dif-ference in the North" organised by Beluxcham together with various IP authorities, Deep C Industrial Zones, and KPMG.http://en.vietnamplus.vn/infrastructure-attracts-investment-to-north-vietnam/110964.vnp

Japan injects additional capital in Dong Nai province


Japan has affirmed its position as one of the two largest investors in the southern prov-ince of Dong Nai by landing further investments in the locality from the outset of this year.Most of the capital came to the support industry, a field that the province is calling for investment to enhance input material supply capacity for local enterprises and lessen dependence on imports.Mai Van Nhon, deputy head of the Dong Nai industrial zone management board, said Dong Nai has been an attractive destination for Japanese investors in recent three years, adding that most of the investments are in support industry, electricity, elec-tronics, mechanics and machines.


FIN

AN

CE


From the beginning of this year, the province has constantly welcomed Japanese busi-nesses studying and seeking investment opportunities.Representatives from 22 enterprises in Japan's Sakai city came to Dong Nai province this month to study investment opportunities. They made a fact-finding tour of local industrial parks like Amata and Long Duc.Meanwhile, Kobelco Eco-Solutions Col., Ltd under the Kobe Steel Group proposed in-vesting in the province's clean water treatment. The company already jumped in in-vestment in waste water treatment at Loteco and Long Duc industrial parks.Experts said that Vietnam's engagement in new generation free trade deals has brought numerous opportunities to enterprises operating in Vietnam, including those from Japan.Dong Nai province has seen robust growth of exports to Japan since the Vietnam-Ja-pan free trade agreement took effect. Last year, the locality shipped over 1.5 billion USD worth of products to Japan, up 11 percent year-on-year and Japan was the second largest export market of the province.In recent years, local businesses have paid much attention to orders from the Japanese market to enjoy tax preferences.A representative from Mabuchi Motor Vietnam Co., Ltd said that thanks to preferen-tial policies, the company's products become more competitive in the Japanese market and this makes production hike 13 percent each year. The company will enlarge their material production to reduce imports and meet demand from its partners.According to the provincial Department of Planning and Investment, the province granted investment certificate to 31 foreign direct investment projects worth 314 mil-lion USD in the first three months of this year.The province is currently home to 32 industrial parks. To date 44 countries and terri-tories have invested in the province with over 1,200 investment projects.http://en.vietnamplus.vn/japan-injects-additional-capital-in-dong-nai-province/110972.vnp

Mekong Delta expands farm land toward large-scale production


Land concentration toward large-scale commodity production is one of the main ob-jectives of Vietnam's agriculture restructuring.Farm land expansion in the Mekong Delta region has benefitted those involved in large-scale production models.With 120 ha of farmland, Nguyen Van Khanh of Phu Cuong village is one of the largest individual landowners in Dong Thap province. Until recently his family farmed sev-eral small disconnected fields. Khanh has found ways to consolidate his farmland by renting the land from others to create large-scale production areas.But Khanh says this is a band-aid solution. In the long run, he says, he hopes the gov-ernment will promulgate a clearer policy on farmland expansion.Khanh told VOV "With this model, we can mechanise agricultural production to in-crease efficiency. But we need clearer policies on the expansion of farm land so farmers can feel secure about their production."In Dong Thap, one of the Mekong Delta's largest farm areas, the average farm house-hold has about 1,440 square meters of farmland, which is usually divided into separat-ed rice fields, making mechanisation unfeasible. But lately some farmers and collectives, in expanding their farmland, have begun to develop larger-scale produc-tion models.Le Minh Hoan, Secretary of the Dong Thap provincial Party Committee, said land ex-pansion is an important lever for boosting production of farm commodities and chang-ing farmers' ways of thinking."We should find a way to get farmers to reach a consensus on farmland expansion and indemnify their risks. Dong Thap is trying to persuade farmers to expand their farm-land or lease land to create larger-scale paddy fields," said Hoan.Farmland expansion began earlier in the Mekong Delta than elsewhere in Vietnam, but there have been lots of difficulties in affirming ownership of the land.


FIN

AN

CE


Huynh Van Thon, director general of the Loc Troi Group, a leading distributor and manufacturer of crop protection chemicals in Vietnam, said farmland expansion has made it easier to mechanise production and apply modern technology and farming techniques.Thon said that in recent years a growing number of farm households have joined his group's large-scale rice field model. For the first winter-spring crop of the 2010-2011 period, the model was applied to about 1,000 ha. That figure had grown to more than 90,000 ha by 2015.He said "I hope the government can convince the National Assembly to increase farm-ers' land ownership and allow them to expand their fields. That will foster large-scale production and mechanisation and modernise Vietnam's agriculture."According to the Steering Committee for the Southwest Region, the large-field model has cut production costs 10 percent to 15 percent and increased production values 20 percent to 25 percent, boosting farmers' profits to $330 per hectare.http://english.vov.vn/economy/mekong-delta-expands-farm-land-toward-largescale-production-348652.vov

Knock-on effects of Can Gio growth


An influx of transport and real estate projects planned for Can Gio has created a land fever in this island district. Alongside with expectations of what the turnaround could do for one of poorest areas in HCM City, many experts have raised concerns about the environmental threats that come with such a development. Gia Huy reports.The arrival of capitalCan Gio is an island district southeast of HCM City, about 50 kilometres away from the city centre. This is the only district of HCM City that touches the East Sea, and the surrounding river and stream system is populated by a vast mangrove forest one of the most distinct hallmarks of a diversified ecosystem consisting of a wide variety of flora and fauna endemic to coastal Vietnam.In 2011, the city's management authorities inaugurated the 31km-long Sac Forest road at a total investment capital sum of VND1.56 trillion ($71 million), stretching from the Binh Khanh ferry-landing to the district centre.The Can Gio real estate market began to warm up in late 2016, after the completion of the 5.8km-long Binh Khanh Bridge which connects Nha Be and Can Gio districts. This is the first bridge linking Can Gio to HCM City's centre, which should help bolster tourism and entertainment activities in Can Gio's seaside areas.Early last month, the HCM City People's Committee approved a plan to build Can Gio Bridge, which will replace the Binh Khanh ferry-landing. The 40m-wide, six-lane bridge will have a 5.8km-long approach road, with a speed limit of 60km/hour. The to-tal investment capital for this project sits at around VND5.3 trillion ($241 million).After the plan was made public, a string of real estate development plans were an-nounced. On April 10, Chair of the HCM City People's Committee Nguyen Thanh Phong gave a nod to the Can Tho Urban Tourism JSC, the project's developer, to in-crease the land area of Can Gio tourism and urban complex from 1,080 to 2,870 hec-tares. The project received approval for its investment proposal 17 years ago, at an initial area of 600ha. It then incurred delays due to a variety of factors, and now the project is accelerating its pace alongside the expansion of its scope.Nguyen Thanh Nha, director of the HCM City Department of Planning and Architec-ture (DPA), said that Can Gio has received many proposals for building resorts and modern trade centres in the district.In the future, investors might also build a casino in the district to serve visitors. DPA is reviewing the district planning and the projects which are in progress or set to com-mence construction to report to the prime minister early next year.HCM City-based real estate developers have recently begun to seek investment oppor-tunities in Can Gio."When Can Gio Bridge's construction is finalised, the district will turn into a resort property hot spot. Many other investors will also flock there for project development,"


FIN

AN

CE


said Nguyen Van Hau, general director of realty firm Asian Holding Real Estate JSC.Real estate projects in the district saw their prices ascend sharply in the past weeks, as many secondary investors flocked there to hoard land for speculative purposes. The transaction price has reportedly increased week after week since early April, after the news on the construction of Can Gio Bridge was released.One square metre of residential land in an area next to Sac Forest Square fetched VND2.5 million ($113) in early April. By mid-April, that same plot went for VND3.5 million ($159) per sq.m."The land price rose the most in coastal areas, which currently average VND13 million ($590) per sq.m. Meanwhile it stood at only about VND10 million ($454) per sq.m last year," said Nguyen Van Cuong, a local real estate investor."These inflated prices are driven by speculative investors. The actual price is much softer, at about VND8 million ($363) per sq.m," he added.Preserving Can Gio's ecosystemTo experts, the market's recent movements act as a warning sign. The commitment of HCM City leaders to turn Can Gio into a tourism hub has long been known, but the recent ascendant land prices are an aberration. Going on little more than rumour, the land prices are rising day by day."Without prudence, the real estate market might backslide as it did in 2008, and these inflated land areas might turn into deserted land areas," said Tran Khanh Quang, a real estate consultant.According to deputy Chair of the Can Gio District People's Committee Truong Tien Tr-ien, the district is home to an important biosphere reserve zone which covers 33,000 square kilometres, nearly half of the district's overall area. If too many investors head there, the land price will increase and the general planning will be disrupted, negative-ly affecting forested areas as well as the local ecosystem.A source from the HCM City Real Estate Association said that the Can Gio Bridge con-struction has yet to be officially approved, and most property developers have just studied investment plans in the district. The source cautioned that claims of Can Gio quickly becoming a tourism hub are unrealistic, and only facilitate speculation in the area.Architect Nguyen Van Hung, director of Green Architecture Company, said that be-sides being a biosphere reserve site, Can Gio is a strategic location for national defense, which adds one additional wrinkle to the planning forecast. Any megaprojects devel-oped in the district must carefully consider their effect on HCM City's buffer zone planning.http://www.vir.com.vn/knock-on-effects-of-can-gio-growth.html

Numerous low-cost housing projects to be launched in Q2 2017


Dang Hung Vo, former vice minister of National Resources and Environment said that the overall picture of the real estate market of Hochiminh city (HCM City) shows that investors have begun to make changes in project development. In which, reducing the number of high-end projects and developing low to and mid-end projects with large market demand is the optioned chosen by many investors. Particularly, many firms said they would launch low-cost projects in the second quarter.Data from the Housing and Real Estate Market Management Department under Min-istry of Construction pointed out that the total supply of apartments in HCM City reached 14,522 units in 2014, 25,560 units in 2015, and nearly 24,000 units in 2016. Par-ticularly, in 2014, the number of high-end apartments accounted for 45 percent, while low to mid-end units accounted for respectively 28 percent and 27 percent. In 2015, these numbers were respectively 40 percent, 35 percent, and 25 percent. In 2016, high-end apartments accounted for 31 percent, while low and low-end units accounted for respectively 49 percent and 20 percent. Thus, the HCM City real estate market has wit-nessed a shift as the low-end apartments have constantly accounted for above 20 per-cent, while high- and mid-end units accounted for less than 80 percent. The uptrend of low-cost apartments is very clear. Hence, in HCM City, the apartment market is grow-


FIN

AN

CE


ing towards increasing the number of low and mid-end units, said Vo.In 2017, information gathered by reporter of Dau tu Bat dong san showed that real es-tate firms in HCM City continued the strategy to develop low- and mid-range housing projects, such as the D-Vela project with 169 apartments, invested by the Dream House Joint Stock Company; Phu Hoi urban area; Truong Luu residential area of Kim Oanh Real Estate; Him Lam Phu An with more than 1,000 apartments invested by Him Lam Land; or the 10 mid-range apartment projects to be launched by Hung Thinh Corpora-tion with a total of nearly 6,000 apartments, etc.The prices of these projects are considered appropriate with the needs of the majority when ranging around 10-20 million dong per square metre, located in districts like dis-trict 8, district 9, Thu Duc district, and district 7, etc. Particularly, a new subdivision is expected to provide thousands of affordable apartments to HCM City market, which is the western area of the city with projects of Novaland and Hung Thinh Corporation, etc.Overall, low-cost projects are mainly developed in the areas with high number of low-income people, such as Binh Tan district, Tan Phu district, district 9, Thu Duc district, and Binh Chanh, etc. These areas have high population density, with abundant land fund and high demand for affordable residential housing.General director of Hung Thinh Land Nguyen Nam Hien believed that the move from luxury segment to low and mid-range apartments is a well-researched strategy and his business has looked at the real demand of the market.In addition, Hien also said that developing low-cost housing projects is also in line with the development orientation of the city when these projects are located in the en-virons, and this development is part of the plan to expand the population of HCM City. According to Hien, although his company develops all three segments of high-end, mid-end and low-end apartments, he believed that the second quarter will be the period for average and low-cost apartments.Meanwhile, economist Nguyen Tri Hieu said that the needs to buy low-priced apart-ments in HCM City is very high, as the current average income in Vietnam is 2,000 USD per person per year, particularly 4,000 USD per person per year in Hanoi and 6,000 USD per person per year in HCM City. A large number of people having average income of about 10 million dong per person per month or less will never be able to buy a high-end apartment. Thus, their real need is to buy affordable housing, and this is a potential direction for real estate firms."Firms should set lower profit targets and pay more attention to the people's needs. In addition, the State should care more about the supply-demand gap in the apartment market in order to have appropriate policies, helping businesses have peace of mind to develop low-cost housing for people", said Hieu.No worries about having shortage of land fundThe total of 21 projects launched in the first quarter of 2017 (data given by CBRE) points out that the market recorded a sharp fall of up to 44 percent in supply compared to the fourth quarter of 2016. However, this decline, according to leader of the Vietnam Real Estate Association, is due to different reasons. Firstly, the first quarter is usually the restructuring period of firms after three stressful quarters on the market. Secondly, the management authority is having policy to tighten the development of new real es-tate projects. This tightening can be seen from the fact that investors wishing to apply for a new project license now must go through additional units, such as the Depart-ment of National Resources, Department of Finance, and Department of Planning and Investment, instead of the People's Committee, Ministry of Construction or the De-partment of Construction like in the past.Furthermore, the development of land fund to carry out new projects of firm also has to follow more stringent procedures as the prime minister requested the Ministry of Finance to switch from land valuation to auctioning the land price.Economist Hieu added that some firms are currently holding land fund and wait for the right time to develop the project. This comes from the psychology of having too many existing unsold projects while there are tens of new projects are launched into


FIN

AN

CE


the market, which leads to fierce competition and products can hardly be sold. In ad-dition, since the land fund is getting scarce, developing projects at the present time may cause firms to be disadvantaged, while implementing the projects in another time may help the firm to easier develop and sell products at good price with low compet-itiveness.Tran Quoc Viet, Chair and general director of Cat Tuong Duc Hoa Real Estate Joint Stock Company said that his unit is currently having six large land plots to develop, but it is not the right time for them to be launched. Thus, Cat Tuong Duc Hoa is cur-rently still developing Cat Tuong Phu Sinh project with a total area of more than 100 hectares, and new plan will be implemented when this project is completed.The consideration of Viet is also the calculation of many other investors as lessons show that making efforts to develop in too many areas may weaken real estate inves-tors. Slowing down to gain sustainability is probably a suitable direction in the context when the supply is increasingly expanding.

BIZ NEWS

Business Briefs May 03, 2017

03/MAY/2017 INTELLASIA |

* KIDO Group Corporation (KDC) has registered to buy 32.8 million shares of Vietnam Vegetable Oils Industry Corporation (VOC) to increase its stakefrom 24 percent to 51 percent. Put-through transactions will be conducted from May 4 to June 2. Meanwhile, VPBank Securities Company is no longer a major shareholderof VOC. as the brokerage has transferred over 9.7 million VOC shares, or an 8 percent stake.* Do Huu Ha, chair of Hoang Huy Investment Services Company (HHS), has acquired 10 million HHS shares to raise his ownership from 1.8 percent to 5.5 percent.* Hang Xanh Motors Service Company (HAX) has passed a share issuance scheme to raiseits chartered capital. It will offer over 8.5 million bonus shares to existing shareholders and over 572,000 employee stock ownership plan (ESOJ;» shares. Thescheme will take place in the second or third quarter after getting approval from the State Securities Commission.* Long Giang Investment and Urban Development Company (LGL) has finished the acquisition of a 51 percent stake of Minh Phat Joint Stock Company in Binh Thuan Province.* ABBank general director Cu Anh Tuan at an annual general meeting yesterday said that the bank plans to double its capitalto around VNDI0 trillion in the near future to meet a new safety ratio set by the central bank. According to the stock market newswebsite at vietstock.vn, ABBank will carry out the scheme in two stages, with the first phase lifting its capital to VND7.5 trillionat the end of this year. Besides, the bank has applied to list on the market for unlisted public companies, or UP CoM, in July. In 2017, ABBank is targeting to raise its pre-tax profit by 56 percent versus the previous year to V 0450 billion while reducing the ratio of bad debt to outstanding loans to 1.68 percent from 1.95 percent in 2016.* Danang Housing Investment Development Company (NON) said it made a consoli-dated net profit ofVND12 billionin the first quarter of this year, up 6.6-fold year-on-year. Its revenue decreased 34 per-cent to VND36.3 trillion in the quarter.* Construction Company o. 1 (VCl) will spend VNDI4.8 billion paying a dividend of V 02,000 per share for 2016. The company will pay it on June 30.

VN Index adds 6.5 points


Local stocks made nice gains on April 26 as investors turned optimistic given a mild recovery on Tuesday, with the VN Index surging by 6.49 points, or 0.91 percent, to close at 716.53.

BUSINESS


BU

SIN

ES

SVietnam finance & business 3 May 2017

Turnover on the HCM City market sharply improved with more than 187 million shares worth VND4.1 trillion traded, in which 6.8 million SBT shares in bloc deals con-tributed VND155.5 billion.Blue chips maintained growth momentum as the VN30 basket saw 20 stocks advanc-ing, eight falling and two moving sideways, lifting the VND30-Index up 1.16 percent at 681.36 points.VNM was the key market driver. Despite its seesaw trading during the morning, VNM rose steadily in the afternoon, and closed the session up 1.8 percent at an intraday high of VND146,500 a share with total matching volume of nearly 1.2 million shares.GAS was also a big gainer as it added 2.4 percent with over one million shares chang-ing hands. VIC increased for a third straight session, rising 1.2 percent on trading vol-ume of over 500,000 shares.In the banking sector, STB jumped 4.6 percent to VND12,400 a share with trading vol-ume soaring to 11.4 million shares. Foreigners strongly offloaded VCB shares, sending it down 0.57 percent to VND34,850 a share.Among small and medium caps, OGC went up to the upper limit with matching vol-ume amounting to nearly 5.5 million shares after announcing positive results in the January-March period. DLG hovered around the reference price in the morning phase but it shot up to the ceiling level of nearly VND3,400 a share in the afternoon, buoyed by high demand, and its matching volume totalled 14.1 million shares.The Hanoi market also gained ground with 103 stocks making gains and 63 edging lower, with the HNX-Index adding 0,86 percent to 89.32 points. There were 56.8 mil-lion shares worth VND570 billion traded, including meager put-through transactions worth VND17.3 billion.The petroleum and securities sectors strongly supported the uptrend. SHB again was the most actively traded stock with over 20 million shares traded, rising 1.4 percent to VND7,500 per share.Foreigners net bought nearly VND107 billion of shares on the southern bourse and VND13.6 billion of shares on the northern exchange.On the HCM City market, they focused on FPT with a net buying value of VND55.3 billion, followed by VNM with VND40.1 billion and GAS with VND39.7 billion. On the other hand, they net sold VCB, DCM and SSI with VND67.2 billion, VND19.8 bil-lion and VND5.9 billion respectively.Stock experts said on the vietstock.vn website that positive signs came back on April 27 as most sectors advanced and turnover improved. However, as investors may re-duce trading in the lead up to the long national holiday, the market is expected to see-saw in a narrow range on April 28.http://english.thesaigontimes.vn/53689/VN Index-adds-65-points.html

Shares rise on investor optimism


Shares rose for a second day in the two local markets on April 27 on investor optimism that the market will return to a positive trend soon.The benchmark VN Index on the HCM Stock Exchange advanced 0.91 percent to end at 716.53 points. Vietnam's key index has gained 1.3 percent in the last two days.The smaller HNX Index on the Hanoi Stock Exchange added 0.86 percent to finish at 89.32 points, a two-day increase of 1.7 percent.More than 274 million shares were traded on both local bourses, worth nearly 4.68 tril-lion VND (207.8 million USD).Market trading liquidity increased from April 26 on both local bourses with an in-crease of 41 percent in volume and 16.3 percent in value.Gains were seen in 17 of the 20 industries in the stock market with shares of energy producers, property developers, food and beverage companies, and construction firms leading the way.Foreign investors remained net buyers with a total net buy value of 124.8 billion VND, focusing on PetroVietnam Technical Services (PVS), information technology group FPT Corp (FPT), PetroVietnam Gas (GAS) and dairy producer Vinamilk (VNM).


BU

SIN

ES


PVS surged 5.4 percent, FPT gained 1.1 percent, GAS added 2.4 percent and VNM rose 1.8 percent.Gains by PVS and GAS were the major factors that pushed the energy industry for-wards, followed by PetroVietnam Coating (PVB), which jumped 4 percent.Other stocks that had strong gains included sugar producers Thanh Thanh Cong Tay Ninh (SBT) and Bien Hoa Sugar (BHS), which soared 5.6 percent and 3.3 percent.The two largest sugar producers in the country have announced they will discuss a merger between the two firms at their coming annual shareholder meetings. If the deal is sealed, it will create a sugar company with total chartered capital of 5 trillion VND.Higher market trading liquidity in the last two sessions proved investors were opti-mistic that the stock market would continue to grow in the short term, Bao Viet Secu-rities (BVSC) said in its report.The next test for the VN Index would be the level of 720 points, BVSC said, adding that the benchmark index would face a big challenge to surpass this level.http://en.vietnamplus.vn/shares-rise-on-investor-optimism/110944.vnp

SSI to issue bonds worth 300 billion VND again


Saigon Securities Incorporation (SSI) has decided to issue bonds worth 300 billion VND (13.3 million USD) to financial and credit institutions.The company will issue 600 two-year bonds at a par value of 500 million VND each. This is a type of non-convertible bond with secured property and priority payment as other secured debts, issued and paid in VN, and issued in the form of book entries.The interest rate is calculated on the basis of one-year interests for individual custom-ers of five banks Vietcombank, Vietinbank, BIDV, Agribank and VIB plus amplitude. The amplitude in the first 12 months is 1 percent annually; and from the 13th to the 24th month it is 1.2 percent. Bonds will be paid only once, at the time of maturity of the bonds; bond interest will be paid once a year.The 300 billion VND mobilised capital is expected to be used for underwriting, invest-ing in listed bonds, and increasing the capital for SSI's activities, but excludes other in-vestments and stock trading.This is the second time in 2017 that SSI has issued bonds, increasing the total value of bonds issued after both sessions to 600 billion VND.In January, SSI had issued bonds worth of 300 billion VND to individuals and non-fi-nancial investors for diversifying mobilised funds and raising medium-term capital in its capital structure.At its annual shareholders' meeting on April 21, SSI reported that the company's busi-ness earnings for 2016 reached 2.312 trillion VND, exceeding 60 percent of the target and up 28 percent against 2015. Its pre-tax profit was 1.056 trillion VND, 11.24 percent higher than the target.For 2017, SSI plans a consolidated revenue target of 2.108 trillion VND and consolidat-ed profit before tax of 1.058 trillion VND.http://en.vietnamplus.vn/ssi-to-issue-bonds-worth-300 billion-vnd-again/111063.vnp

Kido to acquire Vocarimex's controlling stakes


Foodstuff producer Kido Group (KDC) has decided to acquire a controlling stake in Vietnam Vegetable Oil Industry Corporation (Vocarimex) in a deal worth nearly VND1 trillion (US$44 million).In a filing to the State Securities Commission on Wednesday, Kido registered to pur-chase nearly 32.9 million shares in Vocarimex to increase its holding there from 24 per cent to 51 per cent.The purchase will be conducted through negotiations from May 4 to June 2.Vocarimex's shares (VOC) are traded on the Unlisted Public Market Company (UP-CoM) for about VND30,000 (US$1.32) each. At this price, Kido is estimated to spend almost VND987 billion ($43.5 million) for the deal.After the announcement, VOC shares increased 8.5 per cent in the last two sessions. The shares have increased 5.2 per cent this year.


BU

SIN

ES


In January this year, the vegetable oil producer approved Kido raising its stake, by-passing the obligation of making a public bid to purchase shares.On Monday, VP Bank Securities Co (VPBS) announced it sold its entire holding of 9.74 million VOC shares, equivalent to 8 per cent of Vocarimex's capital.Apart from Kido, the State Capital Investment Corporation (SCIC) is the second big-gest shareholder with a 36.3 per cent.Vocarimex is one of the largest local vegetable oil firms, with Kido aiming to seize a controlling stake to penetrate deeper in vegetable oil market after its withdrawal from the confectionery sector.Besides Vocarimex, in November 2016, Kido spent more than VND1 trillion to buy a 65 per cent stake in Tuong An Vegetable Oil Joint Stock Company (TAC). This acqui-sition is reportedly boosting Kido's performance.The company announced its first-quarter consolidated revenues soared 217.4 per cent year-on-year, totalling VND1.25 trillion, after acquisition of Tuong An Vegetable Oil. Its after-tax profit rose 9.4 per cent to VND30.1 billion.However, revenues of the parent company Kido Group declined 74 per cent from VND162.7 billion in 2016's first quarter to just VND42.3 billion in the first three months of this year.Kido attributed the decline to the group's business model transformation in which it gives more autonomy for subsidiary and affiliate firms in doing business while the parent company plays key role in planning strategic development, risk management and brand marketing.http://bizhub.vn/markets/kido-to-acquire-vocarimexs-controlling-stakes_285841.html

PJICO to sell shares to Korean non-insurance firm


Petrolimex Insurance Joint Stock Company (PJICO), with code PGI on the HCM Stock Exchange, will sell 20 per cent of its charter capital to Samsung Fire&Marine Insurance.This plan was released at PJICO's annual shareholder meeting in Hanoi on WednesdayThe company will offer 17,743,555 shares, equivalent to 20 per cent of its charter capi-tal, to Samsung Fire&Marine Insurance Co Ltd, a leading non-insurance company of South Korea.Offer price will be not lower than the minimum price that was proposed in an advisory report on fixing corporate value of VP Bank Securities Co Ltd (VPBS) and the price that was traded on the stock exchange on October 20, 2015.The company plans to issue the shares this year after the Ministry of Finance approves in principle to change PJICO's charter capital and the State Securities Commission also approves PJICO sale of shares to the South Korean partner, cafef.vn reported.After issuing the shares, PJICO's shares owned by the Vietnam National Petroleum Group (Petrolimex) will reduce from 51.18 per cent to 40.95 per cent, while PJICO's shares owned by Vietcombank will drop from 10.04 per cent to 8.03 per cent, according to PJICO's management board.Meanwhile, at PJICO, shares held by Vietnam Re-insurance Corporation will fall from 8.79 per cent to 7.03 per cent and those owned by Hanel Co Ltd will decline from one per cent to 0.8 per cent.Samsung Fire&Marine Insurance holds 20 per cent of PJICO's charter capital.Also at the shareholder meeting on April 26, PJICO's management board submitted to shareholders the business plan for this year.This year, the company expects to achieve insurance revenue of VND2.5 trillion (US$109.6 million), excluding revenue from insurance of fishing boats, a year-on-year increase of 6.7 per cent.Its pre-tax profit will reach VND140 billion, an increase of 11.6 per cent against the same period last year.The company announced its target of minimum dividend of 10 per cent for this year.In 2016, PJICO's total insurance revenue reached VND2.48 trillion, a year-on-year growth of 11.4 per cent. Its pre-tax profit reached VND125.4 billion, a year-on-year surge of five per cent.


BU

SIN

ES


Its dividend for 2016 was 11 per cent, one per cent higher than the plan approved by the shareholder meeting in 2015.http://bizhub.vn/markets/pjico-to-sell-shares-to-korean-non-insurance-firm_285827.html

Vingroup targets 40pct revenue growth, lower net income


Leading business conglomerate Vingroup, one of the nation's largest real estate devel-opers and a retail sector giant, targets higher revenues but lower net profit this year.At the group's annual shareholders meeting held recently in Hanoi, the board of share-holders approved a total revenue target of 80 trillion VND (3.5 billion USD) for the year, and a post-tax income of 3 trillion VND (134.2 million USD).In 2016, the company earned net revenues of 57.61 trillion VND (2.57 billion USD), up 69 percent over 2015, and a post-tax income of 3.51 trillion VND (157 million USD).The group's 2017 targets show a year-on-year drop of 15 percent in post-tax income, but a 40 percent increase in revenues.The value of real estate transactions was 83 trillion VND (3.7 billion USD), with 15,000 apartments, villas, townhouses and hotel condos sold.Vingroup Chair Pham Nhat Vuong said that increase in revenues do not necessarily mean an equally high increase in profits, because of changing market conditions.Vingroup paid 6.18 trillion VND (276 million USD) in taxes in 2016.The group informed its shareholders that it would continue to issue new shares and intensify focus on its retail sector operations.The group's stocks are publicly traded on the HCM Stock Exchange under the stock code of VIC. On April 27, VIC stock stood at 40,900 VND per share.Announcing its audited, consolidated earning results for 2016, the group said net prof-it attributable to the shareholders was 2.43 trillion VND or 1,178 VND per basic and diluted share compared to 1.21 trillion VND or 558 VND per basic and diluted share the year before.All of Vingroup's core businesses grew and secured significant market shares last year, the meeting heard.The retail sector showed the most significant growth last year, as its supermarket chains, convenience stores and other retail outlets posted a 115 percent increase over 2015, earning total revenues of 9.24 trillion VND (413.4 million USD).Three years after it entered the sector, the group now operates more than 1,000 retail stores across the country, serving more than 56 million customers.Other areas earning high returns in 2016 included the hotel, travel and recreation busi-ness with 4.25 trillion VND (190 million USD) for a 49 percent increase from 2015's fig-ure; the health and medical care service sector with 1.09 trillion VND (48.77 million USD) for a 42 percent rise; and the education sector with 713 billion VND (31.9 million USD), a 39 percent increase.Vingroup opened two new hotels and 10 new shopping malls in 2016, bringing the to-tal to nine hotels and 32 malls.The board's decisions and future business plans received near unanimous approval of 96 to 100 percent from shareholders.http://en.vietnamplus.vn/vingroup-targets-40-percent-revenue-growth-lower-net-in-come/111058.vnp

Japan supports Petrolimex to produce new-generation fuel dispensers


The Vietnam National Petroleum Group (Petrolimex) and two Japan-based companies Tatsuno corporation and Nomura Trading Company will extend the agreement on technical cooperation and technology transfer signed between them in August 1999.Accordingly, Tatsuno will continue to support Petrolimex Equipment Joint Stock Company (PECO) to manufacture and assemble new generation fuel dispensers with user-friendly multi-pumps.Nomura Trading Company will import equipment for Petrolimex and assemble a se-ries of Semi-Knocked Down dispensers designed by Tatsuno.


BU

SIN

ES


According to Petrolimex general director Tran Van Thinh, during a recent visit to Ja-pan, Petrolimex had asked Tatsuno to continue supplying new equipment and tech-nology for Petrolimex, such as steam recovery fuel dispensers and super lightweight oil guns. Tatsuno chair Hiromichi Tatsuno expressed his desire to continue long-term cooperation with Petrolimex and PECO for the modernisation of petrol stations.Petrolimex is the largest petrol retailer in Vietnam, accounting for 50 per cent of the market share with over 2,300 stations nationwide and more than 4,000 petrol dealers.http://bizhub.vn/news/japan-supports-petrolimex-to-produce-new-generation-fuel-dispensers_285844.html

Wood pellet spike in Japan signals potential for Vietnam


New record highs for trade of wood chips from Vietnam are projected for 2017 with China and Japan accounting for 70 percent of total exports followed by Finland, Swe-den and Turkey, reports the Wood Resource Quarterly.Over the past 15 years, the global trade of wood chips has risen dramatically by almost 75 percent, mainly because of major expansion of pulp capacity in China. Wood chips, with the exception of Turkey, are used to produce pulp, paper, paperboard and other cellulose-based products.Turkey is the only country to import wood chips for use in producing medium density fibreboard, which is a wood product with a wide variety of uses that is similar but much denser than plywood or particleboard.The Chinese demand for wood chips has been further heightened by governmental logging bans in 14 provinces that have forced buyers to source more heavily from sur-rounding countries including Vietnam, Laos, Cambodia and Myanmar.In Vietnam, officials estimate that almost 90 percent of Central Highlands timber has been sold to buyers in China.The major sources of hardwood chips for the two dominant importers, China and Ja-pan, are Vietnam followed by Australia, Chile and South Africa in descending order of magnitude of the volume of their exports.However, Vietnam suppliers face constraints going forward, says the Wood Resource Quarterly, as current export volumes are not sustainable.Past growth of the industry is attributable to the fact that it has been driven by demand from China; it takes low levels of capital, technology, and labour to establish a wood chip factory; and government policies that have facilitated growth through easy facto-ry licensing and wood chip export tax exemptions.In 2016, analysts point out, that the Vietnam government for the first time levied a tax on wood chip exports, with the aim of conserving the country's timber resources and reducing exports in 2017 and later years to China.Meanwhile, the burgeoning demand for wood pellets in Japan is principally due to ag-gressive energy policy initiatives that have been introduced by the Ministry of Econo-my, Trade and Industry aimed at reducing the East Asian island nation's dependence upon traditional fossil fuels as an energy source.One of the most significant developments along these lines is the recent announcement by the Japanese Environment Ministry that the country intends to construct 43 high-efficiency coal-fired power plants over the next 10 to 12 years.This robust expansion of the country's coal-based energy capacity is viewed as a boon for biomass wood pellet producers, as the stringent emissions targets for these new coal power stations will virtually guarantee a need for co-firing with wood pellets.Vietnam is not currently well-positioned to take advantage of this increased Japanese demand for biomass wood pellets because producers cannot meet the standards for quality, sustainability and reliability that have been outlined by Japanese importers.Specifically, Japan requires all imported wood pellets to be Forest Management (FM) certified, and Vietnamese wood pellets do not meet these requirements but could with adequate industry leadership and training.The Japanese plans to double down on coal-based energy production presents a unique opportunity for forward thinking concerns in the Vietnamese wood pellet ex-


BU

SIN

ES


port market as demand shows no signs of slowing any time soon.Conditions are ripe for a long-term trade partnership between Japan and Vietnamese business concerns that offer significant benefits for the mutual benefit of industry par-ticipants from both countries.http://english.vov.vn/market/wood-pellet-spike-in-japan-signals-potential-for-viet-nam-348534.vov

48 million-USD projects set to ensure power supply for Apec


Several key power transmission projects, worth a total 1.1 trillion VND (48.4 million USD), have been constructed since 2015 to ensure power supply for the Asia-Pacific Economic Cooperation (Apec) meetings in Vietnam this year.Members of the Electricity of Vietnam (EVN) Group the Central Power Corporation (EVN CPC), the National Power Transmission Corporation, and Da Nang Power Co., Ltd worked together to carry out these projects.A 220kV, five 110kV and two medium-voltage transmission lines have been completed to date while the construction of five other 110kV and four medium-voltage lines has been sped up in an attempt to put them into use before August.The EVN CPC confirmed that electricity will not be cut off at any time in Da Nang City from October 25 to November 15 and it will ensure the reliability of the system and have backup plans for power supply at Apec events.Locations for Apec events such as Da Nang Sun Peninsula Resort, Furama Resort, Pull-man Resort, Olalani Resort, Sheraton Hotel, Novotel Hotel, Tien Son Sports Palace, Da Nang City Administration Centre and Da Nang International Airport will be priori-tised for power supply.Vietnam will host about 200 Apec events across ten major cities, with the biggest being the Apec week in central Da Nang city in November.This year marks the second time Vietnam will host the Apec, following the first in 2006.http://en.vietnamplus.vn/48mlnusd-projects-set-to-ensure-power-supply-for-apec/110960.vnp

Hanoi loses VND1,500 billion due to pig price falls


Pig farmers in Hanoi have incurred accumulated losses of up to VND1,500 billion due to protracted price falls, heard a conference held by the Ministry of Agriculture in Ha-noi on April 27.Live pig prices in the last six months have averaged out at VND25,000 a kilo while the average production cost ranges between VND33,000 and VND39,000 a kilo.Therefore, farmers are suffering a loss of VND1 million to VND1.6 million a pig, and 1.5 million pigs have been sold since October 2016.Ta Van Tuong, director of the Hanoi Livestock Development centre under the Hanoi Department of Agriculture and Rural Development, said at the conference on solu-tions for livestock industry stabilisation that farmers have slaughtered pigs themselves to save costs.Nguyen Hung Thinh, a pig farmer in Hanoi's Phuc Tho District, said that he did not know the reasons behind the protracted price decreases. Farmers have not been pro-vided with any information about the market and the plan of this sector.Dinh Xuan Thuy, another pig farmer in Hanoi's Hong Quang District, has sold 15 kilos of piglets at VND300,000 because he does not have enough money to raise the piglets.The situation is predicted to be even more difficult as consumers may switch to using other products such as seafood, chicken and duck in the near future.Therefore, the Ministry of Agriculture and Rural Development on April 27 sent an of-ficial letter to authorities of provinces and cities nationwide to carry out livestock sta-bilising solutions.Accordingly, the ministry assigned specialised agencies to help farmers apply techni-cal solutions in the breeding process to cut costs.Cattle-feed producers and traders are suggested to reduce selling prices and share dif-ficulties with farmers. In addition, animal health agencies should strengthen disease


BU

SIN

ES


and vaccination inspections to prevent disease outbreaks in the near future.Food processors are encouraged to invest in processing and storage to boost stockpil-ing to help consume pigs for farmers.http://english.thesaigontimes.vn/53708/Hanoi-loses-VND1500 billion-due-to-pig-price-falls.html

Higher minimum capital required for private universities


The minimum capital required to establish a private university is VND1 trillion (about $44 million), four times higher than before, according to a new government decree pro-viding conditions for investment in and operation of educational institutions.Decree 46, which was signed by prime minister Nguyen Xuan Phuc on April 21 and took immediate effect, specifies the required minimum capital of VND1 trillion in-cludes cash and assets and excludes land value. By the time of appraisal for university establishment, the investment that has been disbursed must be at least VND500 bil-lion.According to the previous regulation, private universities only need to have chartered capital of at least VND250 billion (excluding land value) and there was no regulation on the investment value at the time of appraisal for establishment.Besides, in order to establish a private university, organisations and individuals must have a detailed scheme in line with social and economic development and university network planning. Only universities having as sufficient land, facilities, student dor-mitories and equipment for physical education as required, and receiving an establish-ment certificate from the prime minister can be put into service.In addition, according to the new regulation, private universities wanting to open a subdivision must have minimum investment capital of VND250 billion, excluding the value of land for building the subdivision. By the time of appraisal, the investment val-ue must have reached at least VND150 billion.http://english.thesaigontimes.vn/53699/Higher-minimum-capital-required-for-pri-vate-universities.html

HCM City's Metro Line No.1 at risk of delay


Metro Line No.1 linking Ben Thanh Market in District 1 and Suoi Tien Park in District 9 might be delayed until 2020 due to slower-than-expected disbursement of Japan's of-ficial development assistance (ODA) capital.Speaking to the Daily on April 27, Le Nguyen Minh Quang, director of the Manage-ment Authority for Urban Railways (MAUR) of HCM City, said that if the city delays payments for contractors, they may suspend construction, causing the project to fall behind schedule.At a meeting on the city's socio-economic performance on April 27, Quang said the city will need VND5.2 trillion (about $228.9 million) to finance construction of Metro Line No.1 this year but the amount of ODA capital allocated by the Ministry of Planning and Investment is only VND2.9 trillion.The metro line has a length of nearly 20 kilometers passing through districts 1, 2, 9, Binh Thanh, Thu Duc in HCM City and part of Di An District in neighbouring Binh Duong Province with a 2.6-kilometer underground section and an elevated section of over 17 kilometers along Hanoi Highway.After years of slow developed caused by numerous adjustments, the total investment cost of the project has risen to over VND47 trillion (US$2.49 billion). The project was officially started in August 2012 and is expected to be put into operation in 2020.In September 2016, the Ministry of Finance ordered the State Treasury to suspend the disbursement for the Metro Line No.1 project.Before the Lunar New Year, the city made an advance payment of nearly VND1 trillion for workers of the metro project. As of April 26, the city still owed the contractors VND1.34 trillion (about $58.9 million).At present, the viaducts of some elevated sections along the Hanoi Highway have been completed. Meanwhile, Ben Thanh, Ba Son and Opera House stations of the under-


BU

SIN

ES


ground section are being constructed. Due to complicated technology required, the underground section is scheduled for completion by 2020.According to a report of the city government sent to the Ministry of Planning and In-vestment, two major ODA projects of the city Metro Line No.1 and phase 2 of the wa-ter environmental improvement project, need VND7 trillion (about $308 million) in 2017. However, the central government has approved to allocate only VND3.5 trillion.Due to slow disbursement, some contractors have threatened to delay or even stop construction work.http://english.thesaigontimes.vn/53704/HCM City percentE2 percent80 percent99s-Metro-Line-No1-at-risk-of-delay.html

Ninh Thuan works on 2 solar power projects


Leaders in Ninh Thuan province on Wednesday began joint work with Power Gener-ation Corporation 3 (Genco 3), under Vietnam Electricity Group (EVN), on two solar power projects in the province.Operating under the plan of the Ministry of Industry and Trade and EVN on renewa-ble energy development, Genco 3 proposed investments in two solar power projects in Phuoc Minh Commune, Thuan Nam District.The proposed projects cover an area of 554 hectares with an installed capacity of 350 MW and total investment of nearly VND9.58 trillion.Construction of the project is expected to begin in the second quarter of 2018 and to finish in the first quarter of 2021.In addition to producing solar power, Genco 3 will provide hi-tech agricultural pro-duction within the project area.Currently, Genco 3 is managing 12 thermal and hydropower plants nationwide, with a total capacity of 6,549 MW, accounting for nearly 17 per cent of the nation's power system output.http://bizhub.vn/news/ninh-thuan-works-on-2-solar-power-projects_285843.html

Tra Vinh attracts additional projects


The southern province of Tra Vinh granted licenses to eight projects in April, including seven domestic ones worth more than 327 billion VND (14.2 million USD) and one for-eign-invested worth 3 million USD, according to the provincial authorities.Since early this year, the province has lured 15 domestic projects with a total registered capital of nearly 581 billion VND (25.26 million USD) and three foreign-invested ones worth 5.64 million USD, up 518 billion VND (22.5 million USD) and 4.64 million USD year-on-year.Tran Anh Dung, vice Chair of the provincial People's Committee, described key na-tional projects in the province as one of the favourable conditions for local investment attraction, including Luong work for the travel of large capacity vessels on the Hau River and Co Chien bridge that facilitate the marine-based economy and goods trans-portation by road.The Duyen Hai power centre with four power plants is capable of generating nearly 4,500 MW of electricity to major industrial projects, meeting power demand in the re-gion.With a lengthy coastline and extensive fishing grounds, Tra Vinh is well-positioned to develop wind and solar power; cruise, ecological, spiritual and resort tourism, he said.Tra Vinh currently records 181 projects, including 35 foreign-invested ones worth about 3 billion USD and 146 domestic ones with a total registered capital of more than 98 trillion VND (4.26 billion USD).It is home to 1,900 businesses and 1,001 affiliates with a total registered capital of some 25 trillion VND (1.08 billion USD) and creates jobs to in excess of 85,000 workers in and outside the province.http://en.vietnamplus.vn/tra-vinh-attracts-additional-projects/111084.vnp


BU

SIN

ES


Plans weighed to restrict private vehicles in HCM City


Restricting private vehicles is a must to reduce traffic congestion and air pollution in HCM City, said the director of the city's Department of Transport at a meeting on April 27 on the city's socio-economic performance in the first four months of 2017.Bui Xuan Cuong said the department would send the HCM City People's Committee plans and specific roadmaps to restrict private motorcycles and automobiles in the city.The department is working with relevant agencies to research and map out plans to reduce traffic congestion. Transport experts and scientists will join forces to evaluate and adjust the plans before seeking public comment."Restricting private vehicles is an urgent task since the development of the city's trans-port infrastructure cannot meet the fast growth of private vehicles, causing not only traffic congestion but also environmental pollution," he added.Data as of April 15, 2017 showed the city had had about eight million vehicles, 640,000 of them autos and the remainder motorcycles. In addition, the city has some 169 autos and 816 motorcycles newly registered a day.According to the plan to reduce environmental pollution by 2020, the city has to cut 70 percent of emissions from vehicles. Therefore, controls on private vehicle growth will help reduce not only congestion but also environmental pollution.Speaking about the recent traffic congestion situation, Cuong said there are 120 con-struction site fencing hoardings in the city at the moment. To construct Metro Line No.1, the number of such hoardings will even increase in the near future.http://english.thesaigontimes.vn/53711/Plans-weighed-to-restrict-private-vehicles-in-HCM City.html

Wind power plant built in Ninh Thuan


Singapore based renewables developer The Blue Circle and its Vietnamese partner TSV began construction of Dam Nai wind power plant on April 28 in Tan Hai com-mune, Ninh Hai district, the central province of Ninh Thuan.The 40- MW wind park is built on an area of 9.6 hectares with a total investment of 80 million USD.The project consists of two phases, of which the first phase is expected to finish by Oc-tober 2017 with three turbines operating. A total of 16 turbines will be fully operational in the second phase which lasts to October 2018.Turbines used for the wind farm will be supplied by Spain's Gamesa. With a capacity of 2,625 MW and a diameter of 114 metres, it is the largest wind turbine installed in Vietnam so far.Investors have been asked to mobilise all resources to carry out the project promptly and ensure work and environment safety.The provincial People's Committee has directed local authorities to create favourable conditions to support investors during the project construction and their business in the localities.Vietnam has great potential for wind power, estimated at about 10,000 MW, accord-ing to research by the German International Cooperation Agency (GIZ).The country needs to switch to renewable energy such as wind and solar power as it has cancelled its first two nuclear power projects and has started implementing com-mitments on reducing greenhouse gas emissions, experts have said.Only four wind power projects are operating in the country with a total capacity of 160 MW, which is far below the huge potential that exists in the country.The government has released its National Electricity Development Plan for 2011-2020 with a strategic priority on renewable energy, with wind power capacity targeted at 800 MW by 2020 and 6,000 MW by 2030.http://en.vietnamplus.vn/wind-power-plant-built-in-ninh-thuan/110974.vnp


BU

SIN

ES


Small production contains commodity-based agriculture


Hue owns a seven hectare plantation of clean vegetables. Each day, her farm supplies from 800 kilos to 1.2 tonnes to the domestic market.Hue says vegetable exports have huge potential but limited land area is one of the fac-tors hindering investors.The Central Highlands province of Lam Dong is one of the leading localities in accu-mulating land and attracting investors to agriculture. Thanks to that, each hectare can earn from 22,000 to 900,000 USD.Take a banana farm in the northern province of Hung Yen as another example. As ba-nana prices in southern provinces plummet, this farm still rakes in high profits.Where large scale production develops, there commodity-oriented production devel-ops. Tens of millions of farmer households with small scale production are in need of a breakthrough.

Tan Son Nhat airspace re-divided to reduce congestion


Vietnam Air Traffic Management Corporation (VATM) on April 27 converted and re-distributed the controlled airspace of Tan Son Nhat International Airport to offer air-craft the optimal trajectory and quickly learn the landing order to prevent congestion.The controlled airspace of Tan Son Nhat is divided into two sub-zones, the control zone for incoming aircraft and the access control zone, VATM said.In particular, the control zone for incoming aircraft is to integrate the arriving air-planes in the final stage of approaching for landing. This is to ensure the optimum or-der and spacing, improve the safety coefficient and the efficiency before the planes are transferred to the air traffic control tower at Tan Son Nhat.Meanwhile, the access control zone is responsible for operating the first phase of arriv-ing and departing airplanes and other active ones in the area to guarantee a safe dis-tance between them.Also, the adjustment will support the preliminary setting of the landing order for in-coming aircraft, the determination of expected landing time, and the coordination with the HCM City Long Distance Control centre in planning for arriving planes to wait for a reasonable time. All of these are aimed at relieving the overload in Tan Son Nhat air-space.In simple terms, the division of areas between landing planes and those taking off con-tributes to better management and easier flight control, avoiding a chaotic situation that may lead to congestion in the air.The redistribution of the controlled airspace provides aircraft with the optimal trajec-tory, helping anticipate the landing order, increasing the efficiency of air traffic control and reducing congestion in the sky above Tan Son Nhat, said VATM. In addition, this move helps relieve the intensity of work for air traffic controllers and cut jet fuel con-sumption to improve efficiency.Earlier, in November 2016, VATM applied a new flight management method at Tan Son Nhat International Airport to ease congestion in its airspace.The advantage of this new method is a decline in the need for radar guidance. When an aircraft enters the controlled airspace of Tan Son Nhat, depending on the situation on the ground, controllers may allow the plane to directly make its landing.In case the ground is overloaded, air traffic controllers inform the captain once. Then, the aircraft automatically follows the map outlined with no need for further commu-nications between the two sides to limit information interference.Moreover, the new method minimises the chance of arriving and departing airplanes meeting each other at a certain point, and bring down the number of intersections, helping controllers maintain a more accurate and safer spacing.With the new method in application, airlines also benefit with their planes arriving on time, lowering the delay rate. It is most important that aircraft do not need to circle while awaiting a landing slot, helping cut fuel consumption and emissions to the en-vironment and improve economic efficiency.


BU

SIN

ES


Viettel Global expects to acquire 50m customers


Viettel Global Investment JSC (Viettel Global) targets increasing its customers in for-eign markets by 12.9 million in 2017, bringing the total to more than 50 million.Viettel Global approved its business plans this year at its annual shareholders' meet-ing, held earlier this week. Accordingly, it targeted revenue of $1.4 billion this year, posting a year-on-year rise of 29 per cent.It has set strategic plans this year to improve its competitiveness and sustainable in-vestment effectiveness.The company has also prepared plans to penetrate larger markets with a population scale of 100-200 million as one of its strategies to continue expanding its international investment.Last year, its total revenue from telecom services in foreign countries rose by 21.5 per cent, which was double the previous year. Its new markets in Africa witnessed strong growth, such as Viettel Tanzania at 1,343 per cent, Viettel Cameroon at 43 per cent and Viettel Burundi at 42 per cent.By the end of 2016, its total customers reached 36 million. Its telecom networks in for-eign countries have rapidly moved to the number one position as a result of a strategy to focus on new 4G technology, added-value services and mobile phone application. Viettel Global has provided 4G service to five out of nine markets.In the first quarter of the year, its pre-tax profit rose by $39.3 million in comparison with the same period last year.Viettel Global was established in October 2006 when its parent company, Viettel Group, decided to expand business overseas.http://bizhub.vn/tech/viettel-global-expects-to-acquire-50m-customers_285837.html

Microsoft Teams launched in Vietnam


Microsoft officially launched Microsoft Teams - the chat-based workspace in Office 365, on Thursday in Vietnam.Office 365 provides individuals, teams and entire organisations with the broadest and deepest toolkit for collaboration. Microsoft Teams is a digital workspace built on four core promises, including chat for today's teams, a hub for teamwork, customisation options and security that teams trust."Recent studies revealed that in the past five years the number of teams working in companies rose by five times. Additionally, the number of teams working through meetings, phone calls and emails rose 150 per cent during that same period. Moreover, such work accounted for up to 80 per cent of each employee's working time," said Vu Nguyen Cao Son, a senior specialist at Microsoft Vietnam.He noted that Microsoft Teams helps groups save time during direct meetings, phone calls and email replies through use of the digital workspace."Office 365 is designed to meet the special demands of each team, based on their work-ing requirements. It is integrated with Microsoft Outlook, SharePoint, PowerPoint, Word and Excel to easily follow the progress of work, thus bringing more flexibility and effectiveness to groups", said Nguyen Vu Thang, director of the Office Product at Microsoft Vietnam.http://bizhub.vn/tech/microsoft-teams-launched-in-viet-nam_285829.html

VinaPhone launches 4G in Vung Tau


Vietnam's mobile network operator VinaPhone on Thursday launched 4G services in the southern port city of Vung Tau.On the occasion, VNPT Ba Ria-Vung Tau set up the booths and organised activities to provide visitors a taste of the 4G experiences. In addition, 4G SIM upgrades were of-fered free to the operator's customers.VinaPhone 4G's average internet access speed ranges from 50 to 80mb/s, which is sev-en to 10 times faster than the current 3G network speed. At this speed, users can en-gage in interactive experiences, and post, download, video stream, and play games with a lag speed that's one to three times lower than 3G.


BU

SIN

ES


VinaPhone is offering a variety of 4G packages to customers, the cheapest being around VND79,000 (US$3.5) per month.http://bizhub.vn/tech/vinaphone-launches-4g-in-vung-tau_285825.html

FPT to boost cooperation with French firms


FPT will cooperate with French businesses to promote the fourth industrial revolution, FPT chair Truong Gia Binh said at a workshop held in Paris on Wednesday.The workshop drew some 130 representatives from France's corporations, businesses and startups.Vietnam Ambassador to France Nguyen Ngoc Son appreciated the setting up of FPT's representative office in France in 2008, which significantly helped in boosting the rela-tionship between the two countries.The ambassador also hoped FPT and the French firms could reach new agreements of cooperation, especially in the fields of providing information technology (IT) services and specialised solutions."On the demand for human resources in information technology, Vietnam's govern-ment would like to train one million programmers each year to catch up with the fourth industrial revolution. Moreover, technology is considered one of the six leading points on the basis of which Vietnam wishes to strengthen ties with France," Son em-phasized.At the conference, La Poste chair Philippe Wahl said cooperation with Vietnam was one of the key steps in the development orientation of the company in Asia. With re-gard to technology, Vietnam was taking strong steps in terms of development and FPT was one of the pioneers.At present, FPT has many projects with major technology partners, such as IBM, Mi-crosoft, GE Digital, Siemen and AWS, to train human resources and to meet the needs of this revolution.FPT has also introduced three models of cooperation with its clients and partners in France, the model of software services, factory model applied for digital conversion service and product development model for the Vietnamese market. These models have been successfully deployed by FPT at a number of major French clients, such as Neopost, Airbus and Telespazio.The event was organised by FPT in collaboration with France's IE Club and La Poste Company to seek opportunities between FPT and French enterprises as part of the fourth industrial revolution.http://bizhub.vn/tech/fpt-to-boost-cooperation-with-french-firms_285822.html

Saigon Co.op retailer expands market share


The Saigon Union of Trading Cooperatives (Saigon Co.op) is affirming its status as Vi-etnam's leading retailer by opening additional 8-10 Co.opMart supermarkets this year.In addition, it will build one Sense City commercial centre and launch 65 Co.op food stores and 500 convenience store called Co.op smile.The company will also flesh out its brand-new business model- Co.opMart Finest that connects multimedia and other forms of shopping.It also runs the programme "Accumulating Stamps to Exchange for Gifts" until July 30 for customers holding Co.opmart cards. The programme has been launched in collab-oration with Brand Loyalty that enables customers to collect a set of high-quality crys-tal imported from Germany.According to Nguyen Anh Duc, permanent deputy general director of the Saigon Co.op, constant updates of international trends and renewal of promotional pro-grammes will help the company bring practical benefits to its customers while con-necting consumers and the supermarket.The move also fosters the consumption power of the Co.op market chain's products, 90 percent of which are made in Vietnam, he added.http://en.vietnamplus.vn/saigon-coop-retailer-expands-market-share/111080.vnp


BU

SIN

ES


The KAfe, Coffee Inn died young, but milk-tea chains thriving


While a few coffee chains have had to close, milk tea chains have become popular, es-pecially in the north.The KAfe, Coffee Inn and Saigon Cafe recently shut down, following the closure of big foreign chains Gloria Jean's and NYDC in recent months.Discouraged by the departure of such chains, many investors have postponed their plans to open new shops.Meanwhile, more and more milk tea chains have been established, especially in the north and in Hanoi. This has been a surprise to analysts, as the north is a conservative market where people prefer coffee to sweet drinks like milk tea.It is estimated that 170 milk tea brands have appeared in the market so far this year, both privately branded and franchised ones.Unlike the 'milk tea waves' in previous years, this year witnesses the mushrooming of milk tea shops in non-Hanoi provinces, especially in Bac Ninh, Hai Phong, Quang Ninh and Phu Tho.In Bac Ninh alone, 30 milk tea brands turned up in the market in March and April with hundreds of shops, both small kiosks to larger shops (15-20 tables).Ding Tea is the best known brand with 100 sale points, followed by Toco Toco with 50 shops. Other brands have been present in the market for a long time, such as Chatime, ChaGo and ChaChaGo.Other milk tea chains, franchised ones, such as Bobapop, Citea Fund and Blackball, have been expanding rapidly in the capital city. GongCha and TraTien Huong origi-nated from HCM City, and have also landed in Hanoi.Amy Truong, the owner of Toco Toco, said milk tea is suitable to different groups of consumers, from youth to office workers.Two brands, which have just appeared, have been developing at a fast pace Goky and Good Tea. Goky has more than 100 shops after five months of operation, while it plans to open six more shops in May.Meanwhile, Good Tea has more than 20 sale points after half a year of making its de-but, not only in Hanoi, but in many other northern provinces.Analysts said there were two reasons that had made milk tea become the favourite in-vestment field.First, investors don't have to spend too much money on shop decoration, setup, staff and formula. Second, milk tea is said to bring big profits. Sources said VND2,000 worth of tea powder is used in a glass of milk tea priced at VND20,000."It seems that it is now easiest to sell milk tea," the CEO of a beverage chain said. How-ever, he warned that those who want to jump into the market will have to compete with dozens of existing brands.http://english.vov.vn/economy/the-kafe-coffee-inn-died-young-but-milktea-chains-thriving-348715.vov

Vietnam's PV OIL holds 20pct of petroleum retail in Laos


Vietnam's PetroVietnam Oil Corporation (PV OIL), is running profitably in Laos, earn-ing an average revenue of over 100 million USD and contributing over 20 million USD to the host country's budget a year.According to Nguyen Kim Son, director of PV OIL Laos, the company made its pres-ence in 16 out of Laos's 18 provinces that allowed it to account for 20 percent of petro-leum retail share and become the second largest petroleum retailer in Laos.From an initial investment of 4 million USD, the company gained a profit of 12 million USD a year after seven years of operation. It is providing jobs for around 2,000 Lao people at its petrol stations nationwide.PV OIL Laos officially operated from December 1, 2010, on the foundation of Laos's re-tail unit of Royal Dutch Shell.Its initial 70 petrol stations have so far been increased to 104 across Laos.http://en.vietnamplus.vn/vietnams-pv-oil-holds-20-percent-of-petroleum-retail-in-laos/111030.vnp


BU

SIN

ES


EVN told to handle loss-making projects


Deputy prime minister Vuong Dinh Hue has requested the Electricity of Vietnam (EVN) to review loss-making projects to ensure investment flows for its production and business.At a working session with the group's representatives on April 26, the deputy PM said modern technologies should be applied to reduce labour costs, electricity losses and increasing transparency in the power price calculation.He also asked the national power company to propose tariffs based on true production costs this year. The move aims to ensure EVN's profits and create favourable condi-tions to attract investment in renewable energies, and at the same time to curb infla-tion.EVN should also clarify the results of its restructuring process of the past few years and its upcoming plans, including privatisation, divestment, building a competitive power generation market, human resources and technologies, he added.The group's calculations show that its total production costs this year are expected to increase to more than 7.2 trillion VND (316.7 million USD) due to the fluctuation of coal, gas and oil prices.EVN general director Dang Hoang An said earlier this year that some input costs, es-pecially coal, have increased continuously since 2015 but have not been calculated into electricity prices. Coal prices which rose 7 percent from December 2016 accounted for over 4.7 trillion VND of the total price increase.However, EVN says it has set a range of plans to knock off costs of about 3 trillion VND from the projected increase. Last year, its total revenue reached 278 trillion VND, post-ing a 14 percent year-on-year rise. All units reported profits in 2016.The deputy PM asked the group to focus on balancing capital every year in the 2017-20 period to save at least 10 percent a year.The ministry, EVN and relevant agencies plan to complete the privatisation process of Power Generation Corporations in the third quarter of the year.Duong Quang Thanh, EVN Chair, said it would apply automation at all units, espe-cially power transmission and distribution.The Central Power Corporation has cut about 1,000 people from its payroll by install-ing two million electronic metres.http://en.vietnamplus.vn/evn-told-to-handle-lossmaking-projects/110946.vnp

Viglacera to form joint venture with Cuba


The Vietnam Glass and Ceramics for Construction Corporation (Viglacera)'s annual shareholder meeting recently highlighted the company's plan to carry out investment activities in Cuba.The company plans to set up a joint venture in ceramic and porcelain tiles with char-tered capital of nearly 40 million USD and total investment of some 61.8 million USD.In the first phase, Viglacera will contribute capital by providing technical services, spare parts replacement and cash to renovate two factories to serve Cuban market de-mand and export and invest in new production lines of sanitary ware and floor tiles.In the field of tourism and hotels, Viglacera is also cooperating with domestic partners to attract capital to establish a company, expected to have charter capital of some 3 mil-lion USD, to cooperate with Cuban partners.In addition, the corporation plans to set up a company in Cuba to carry out real estate projects, initially to invest and upgrade two hotels owned by two groups in Cuba, at the same time seeking new investment projects.Viglacera also plans to invest in industrial park infrastructure, with a 168ha project in Cuba's Mariel Special Economic Zone.Last December, Viglacera entered into a joint venture partnership with Cuban giant developer Geicon to manufacture building material in the Caribbean island nation, of which, Viglacera is responsible for upgrading two existing ceramics and sanitary ware plants and investing in two more, four years after the joint venture is operational.http://en.vietnamplus.vn/viglacera-to-form-joint-venture-with-cuba/111016.vnp


BU

SIN

ES


Toyota Vietnam produces 400,000th car


Toyota Motor Vietnam (TMV) completed the production of its 400,000th car on April 27, marking the company's development milestone in the Vietnamese market.At a ceremony in celebration of the event, TMV President Toru Kinoshita said his com-pany has been working on the improvement of assembly lines and product quality.This is the reason why Toyota is listed among favourite brands in Vietnam's domestic auto market.TMV started production in Vietnam in 1996, with two cars per day on average. Now, the figure is 170, with cumulative sales as of 2016 exceeding 412,000 cars.http://en.vietnamplus.vn/toyota-vietnam-produces-400000th-car/110926.vnp

Taiwan paper plant red-flagged


The $220 million Dai Duong paper plant project, invested by the Taiwanese company Chang Yang Holding Ltd in the southern province of Tien Giang, may be scrapped due to environmental concerns.The Light Industry Department, which helps the Ministry of Industry and Trade reg-ulate paper, leather, garment, and other light industries, has just completed a docu-ment containing issues related to the project, and agreed with the opinions of scientists who think this project will do significant harm to the environment.In March 2016, the Tien Giang Management Board of Industrial Zones granted an in-vestment certificate to Chang Yang Holding to develop a paper factory worth $220 million. The factory would produce duplex and kraft paper as well as products for household use, with a total capacity of 413,000 tonnes per year.The plant's timetable calls for two construction phases - phase one with a capacity of 170,000 tonnes a year scheduled to be completed in August 2017, and phase two with a capacity of 238,000 tonnes a year. The facility's products will be sold domestically and exported to Taiwan and other overseas markets.Half of the input material for the project would come from waste paper in Vietnam, and the other half would come from imported waste paper. If the waste paper supplies are not sufficient, the investor would use imported paper pulp.According to the department, after the project was granted an investment certificate, experts raised concerns about the environmental impact of the project. Specifically, the project could pollute the Tien River and its surrounding riverbanks. It would use 7,500 cubic metres of fresh water per hour, while simultaneously ejecting nearly 5,000 cubic metres of wastewater over the same period.Under pressure from the citizenry, the Tien Giang People's Committee recently held a meeting to gather opinions from scientists. The scientists said that paper is one of the most potentially polluting sectors. Many chemicals are needed to turn waste paper into the paper pulp that is needed for production. The wastewater, if untreated, would be very harmful to people, plants, and animals. The scientists asked the province to carefully evaluate the technology of this company and its wastewater treatment meas-ures before allowing the project to begin."Scientists that Tien Giang authorities consulted with all said that Tien Giang should be careful or simply decline this project altogether to prevent a possible crisis, making sure to be consistent with the prime minister's 'determination to not trade off the envi-ronment for economic interests'," the department's document stated, adding that they put a lot of weight in the scientists' concerns.Recently, citing environmental concerns, the government halted a major steel project due to lingering apprehensions brought about by the infamous Formosa steel fiasco. Last week, prime minister Nguyen Xuan Phuc ordered the suspension of the $10.6 bil-lion Ca Na steel project proposed by domestic steel maker Hoa Sen Group in the cen-tral province of Ninh Thuan in order to "clarify some issues related to the environment and technology".The prime minister applauded Ninh Thuan for wanting to grow the province econom-ically, but said preparations for the project have been proceeding too fast. In addition to a report on the domestic steel demand, the prime minister also asked the investor


BU

SIN

ES


and government agencies to evaluate the environmental impact and review the tech-nology to make sure the project is safe.In April 2016, fish were found dying en masse along the central coast of Vietnam. Sub-sequent inspections identified wastewater as the reason behind the deaths. Water re-leased during the test run of the $10.5 billion steel and port complex in the central province of Ha Tinh invested by Hung Nghiep Formosa Ha Tinh Steel Co., Ltd (HFS), a subsidiary of Taiwanese firm Formosa Plastics Corporation seriously damaged the ecology of the surrounding area. The incident harmed the livelihood of fishermen in the region, and negatively affected the budding tourism industry of the central region.http://www.vir.com.vn/taiwan-paper-plant-red-flagged.html

Mekong Delta farmers begin shrimp harvest


Farmers in the Cuu Long (Mekong) Delta region have begun this year's first harvest season of brackish water shrimp, earning strong profits due to high prices and favour-able breeding conditions.The price of 30-piece-per-kilo size black tiger shrimp, which is bought at ponds by traders, is 245,000-250,000 VND (10.6-10.8 USD) a kilo.Nguyen Duy Bao, who rotates growing shrimp and rice in a rice field in Kien Giang province's An Minh district, said "At this price, shrimp-rice rotating farmers can earn a profit that is equal to 60-70 percent of the production cost of shrimp."In the early months of this year the weather was not severe as during the same period of last year, so shrimp grew quickly, Bao said.Farmers in Kien Giang have bred more than 102,000ha of shrimp in the first three months of the year, up 11 percent against the same period last year, according to the province's Department of Agriculture and Rural Development.In Ca Mau province, which is the country's largest shrimp producer, farmers who be-gan breeding shrimp fries early this year have reaped their harvest.Nguyen Van Thoa in Ca Mau province's Phu Tan district has sold two ponds of white-legged shrimp after three months of breeding and got a profit of 700 million VND (30,400 USD).Many farmers here have not bred shrimp this year because they were afraid of severe drought, salt water intrusion and poor harvest as last year, Thoa said.This year, saline water intrusion in the delta occurred late and the salinity has been low so many farmers are waiting for the proper time to release shrimp fries into ponds for breeding.At present, the weather is hot, causing a high content of pH (potential of hydrogen) in shrimp ponds or rapid growth of algae in shrimp ponds. This could affect the growth of shrimp.Quach Thi Thanh Binh, deputy head of the Soc Trang province Aquaculture Sub-de-partment, said farmers should regularly carry out water inspections as well as heed the warning of competent agencies about shrimp diseases in order to choose a proper time to put water into shrimp ponds.Soc Trang will enter its main period for releasing shrimp fries into ponds for breeding after May when the rainy season officially begins, according to the province's Depart-ment of Agriculture and Rural Development.The province's shrimp breeding areas expect to increase as the price of shrimp is high this year, said the department.Soc Trang farmers have harvested more than 1,000ha of shrimp with a total yield of 4,153 tonnes so far this year.Ngo Thanh Linh, general Secretary of the Ca Mau Association of Seafood Exporters and Producers, said most shrimp processors in Ca Mau are facing a shortage of shrimp material.The supply of raw shrimp can only meet 40-50 percent of the demand of large shrimp processing firms in the province, he said.In addition, the third quarter of the year is the main shrimp export season so most do-mestic shrimp processors are buying more raw shrimp to ensure their production.


BU

SIN

ES


The domestic supply of raw shrimp will not meet the demand of shrimp processors in the near future and the price of shrimp will remain high, Linh said.The delta, which accounts for more than 80 percent of the country's shrimp breeding area, has raised more than 536,000ha of shrimp as of the end of last month, up about 53,300ha against the same period last year.http://en.vietnamplus.vn/mekong-delta-farmers-begin-shrimp-harvest/110963.vnp

Five measures proposed to save pig-farming industry


Minister of Agriculture and Rural Development Nguyen Xuan Cuong has submitted five solutions to prime minister Nguyen Xuan Phuc to help the pig-farming industry in the context of a sharp fall in pork prices.Over the recent months, the price of live pigs has been on the decrease, down to VND30,000 (US$1.3) per kilo, the lowest for the last 10 years, down from the previous VND40,000 (US$1.7).According to minister Cuong, the government should assign the Ministry of Agricul-ture and Rural Development (MARD) to cooperate with the Ministry of Finance as well as localities to instruct enterprises to reduce prices of animal feed and veterinary medicines.Meanwhile, the Ministry of Foreign Affairs and the Ministry of Industry and Trade need help to seek outlets for pork.The minister suggested the government instruct banks and credit institutions to charge off and extend the payment term of debts for pig breeders, and people selling animal feed.He also proposed domestic companies such as Vissan, Hapro Hanoi and Saigon Coop to increase the purchase of meat from farmers.The minister recommended the halt of the temporary import and re-export of meat products to protect domestic products of the same kind.In the long run, MARD will apply more modern and advanced technologies to slash production costs, improve productivity and seek potential export markets for domes-tic pork meat. \The ministry has planned to ask localities nationwide to restrict the licences issued for new animal-feed processing facilities as current productivity is 31 million tonnes an-nually, far more than the target of 25 million tonnes by 2025.The ministry will also reduce livestock from the current 4.2 million sows to three mil-lion by 2019.Localities should not increase their quantity of pigs especially sows, Cuong said, call-ing them to raise pigs that generate high yield or special varieties popular with certain groups of consumers.http://english.vov.vn/economy/five-measures-proposed-to-save-pigfarming-indus-try-348723.vov

Vingroup puts into operation hi-end golf course in Hai Phong


A high-end 36-hole golf course, invested by Vingroup was put into operation in Vu Yen island, the northern city of Hai Phong on April 29.The Vinpearl Golf Hai Phong is the first island-based golf course in the north, and the biggest among golf courses on islands in the country.It is one of the Vingroup's 15 facilities launched the same day across 11 provinces and cities, celebrating the 42nd anniversary of the National Reunification Day (April 30) and the International Labour Day (May 1).The latest facilities raised the group's capacity to nearly 11,000 rooms, three golf cours-es, and five entertainment parks across the nation.http://en.vietnamplus.vn/vingroup-puts-into-operation-hiend-golf-course-in-hai-phong/111008.vnp


BU

SIN

ES


Authorities discuss plan to make Saigon a city that never sleeps


Businesses already allowed to stay open after midnight should not be disturbed by un-necessary inspections, administrators said at a meeting to discuss solutions to make HCM City more appealing to night-owl tourists.Tran Vinh Tuyen, deputy chair of the HCM City administration, chaired a meeting with the municipal tourism and police departments on Friday, discussing the allowa-ble time limits for operations of service establishments citywide.According to a government's decree, bars at hotels from three-star and above, and dis-cotheques at four-star lodging facilities and higher are allowed to operate until 2:00 am.However, venues eligible for the after-midnight operations in HCM City have been in-spected and examined by police and other agencies on a regular basis, Bui Ta Hoang Vu, director of the tourism department, complained at the meeting."Despite this regulation, businesses have complained that they would be inspected whenever they stayed open through the night," Vu said.A representative from the HCM City police department defended that they had never inspected any hotels from three-star for the after-midnight operations."The inspections have mostly been launched into complicated areas suspected of host-ing social evil activities," the police representative said.Deputy chair Tuyen said relevant agencies should follow the government's decree and allow eligible businesses to open after midnight."A facility must only be inspected if there are ample grounds for the check or com-plaints about its operation, not because it opens after twelve," the city's leader pressed.Tuyen added that it is unreasonable to check a violation-free bar, and doing so is a sign of harassing businesses."Any service provider hit by such harassment can report to the municipal administra-tion," he said."Should the inspectors fail to provide proper grounds for their checkups, they will be sanctioned by the city's administration."More 'sleepless areas'Vu, the city's tourism chief, said bars and discotheques opening after twelve are not enough to fascinate international tourists, who tend to stay up late due to time zone changes.Foreign tourists want to have some fun and engage in entertainment and cuisine when most locals are asleep, Vu said, suggesting that some tourist-packed areas in the city be allowed to operate through midnight.For instance, establishments on Bui Vien, Pham Ngu Lao and De Tham Streets, known as the 'backpackers' areas,' should be allowed to service tourists until 2:00 am, accord-ing to the tourism chief.Vu added that other places, such as Nguyen Tri Phuong Street in District 5 and Thanh Thai Street in District 10, can seek specific permission from the municipal administra-tion for their after-midnight operations.The police department advised that its tourism counterpart's proposal should be care-fully vetted as some businesses can take advantage of this to open through the night.In response, Tuyen said local authorities must file their proposal to the city's adminis-tration if they want to have a 'sleepless area' in their locale."Authorities must also seek feedback from residents living around that area, not only the businesses, before submitting the proposal," Tuyen noted."We will consider proposals that are made to better serve foreign tourists."http://tuoitrenews.vn/business/40747/authorities-discuss-plan-to-make-saigon-a-city-that-never-sleeps

Promoting Vietnam's green brand names


To catch up with the trend of sustainable development, managers and businesses have to develop national brand names of green products.A survey by Nielson Vietnam shows that 86 percent of Vietnamese are willing to pay


BU

SIN

ES


higher prices for environmentally and social friendly products and green and clean brand names. Consumers care more about information publication and will boycott products which are harmful to the environment and health. Producers have to adjust their develop strategy toward green production, friendly materials, energy saving, and reasonable prices.Vu Tuyet Nhung of the Association of Vietnam Organic Agriculture said "Organic farming is a new trend and there has not yet been sufficient policies and instruction to help farmers apply these new methods. The Association has consulted international organisations in countries that have advanced organic agriculture. We intend to help farmers produce and register green products."An eco-labeling programme called Vietnam Green Label has been implemented over the past decade to promote the production and consumption of environmentally-friendly products and the sustainable use of natural resources. The application for Vi-etnam Green Label designation is simple and free. Businesses with Vietnam Green La-bels are committed to social responsibility, which boosts their competitiveness and profits.Do Kim Lang, deputy director of the Trade Promotion Department of the Ministry of Industry and Trade, said the Ministry will work with the Ministry of Natural Resourc-es and Environment to help business develop green brand names."We'll add eco-factors to the criteria list of the National Trademark Programme. Busi-nesses will have to meet the tougher conditions of the national competitive strategy", said Lang.The state has to create conditions that promote green trademarks, while managing and monitoring to ensure transparency and consumers' rights.http://english.vov.vn/economy/promoting-vietnams-green-brand-names-348138.vov

Long Thanh Golf Course maintains leading position in Vietnam


The various awards that Long Thanh Golf Course has received over the years are tes-taments to the course's quality.Long Thanh Golf Course is located in the southern economic triangle, about 40 min-utes' drive from HCM City centre.It was designed by Ron Fream the founder of Golfplan-Fream & Dale Golf Course Ar-chitecture, with more than 35- year experience in designing, building, and maintaining golf courses throughout the world.Of the over 350 hectares in land-scape area, the golf course has around 100ha for high lawn hills. Two thirds of its circumference is surrounded by branches of the Dong Nai River.Hence, it has very cool, fresh climate, with poetic natural scenery consisting of rows of palms, artificial pools and lakes, and tumbling falls.The grass for the course is Paspalum grass, which not only helps golfers make exact shots but also contributes to making them feel more relaxed.At present, Long Thanh Golf Course is being operated with 18 rounds on Hilly Course, and 18 rounds on Lake Course, both delicately designed to bring attractive challenges to professional golfers and beginner players as well. The lighting system meets inter-national standards and can serve golfers at night.The experienced staff are very courteous and well trained in golf rules, foreign lan-guages and services, by an expert from the British Professional Golf Association.Long Thanh Golf Course is serving more than 1,000 members, more than 60 percent of whom are from Europe, Japan, Republic of Korea, Singapore, China and Thailand.Most recently Long Thanh Golf Investment and Trading JSC, operator of the golf course, has received the Biggest Charity Fundraising Golf Award in May 2016 from the Asia Book of Records.In 2015, World Records University conferred on Le Van Kiem chair of Long Thanh Golf Investment and Trading JSC the honorary degree of Doctorate in record Breaking Hanoris causa for: "The Creator and Initiator of the largest Charitable Golf Tourna-ment".


BU

SIN

ES


In 2014 Long Thanh Golf Investment and Trading JSC received the Global Ethics Awards from the Vietnam Federation of UNESCO Associations.http://english.vov.vn/economy/long-thanh-golf-course-maintains-leading-position-in-vietnam-348683.vov

Vietnamese high-quality goods fair opens in city


The 2017 Vietnamese high-quality goods fair kicked off on April 27 at the Phu Tho in-door competition house in HCM City, featuring 500 booths of nearly 200 domestic en-terprises.The week-long fair, on until May 2, is showcasing high-quality products, including home appliances, fashion items and food.The event has a brand-new area called Xanh Tu Te which is dedicated to farms, coop-eratives and individuals from various localities across the country to introduce clean and organic farm produce.http://english.thesaigontimes.vn/53710/Vietnamese-high-quality-goods-fair-opens-in-city.html

Hoa Binh businesses look for opportunities in Australia


A business delegation of the northern province of Hoa Binh has visited Melbourne city in Australia's Victoria State to explore cooperation and investment opportunities.The delegation, led by Nguyen Cao Son, President of the provincial Association of En-terprises, held a meeting with Tran Ba Phuc, President of the Vietnamese Business As-sociation in Australia (VBAA) in Melbourne, and over 20 members of the Vietnamese young entrepreneurs club in Australia.During the meeting, Son said Hoa Binh-based firms hope to set up new relations and find new business partners in Melbourne during the visit.He also introduced the province's advantages and investment potential for Australia-based enterprises.Son called on the VBAA to consider partnering up with enterprises in Hoa Binh in health care, education, construction, and agricultural production, and help with the export of Hoa Binh's key products to Australia.Representatives from VBAA briefed the delegation on the Australian market, good de-mands and import taxes. They also shared with the guests experience in doing busi-ness in Australia.The VBAA President appreciated the potential, advantages and incentives offered by Hoa Binh, pledging that he will do his utmost to promote the province's potential in Melbourne in particular, and Australia in general.Phuc also said he hopes more business delegations from Vietnam will come to explore potential in trading agricultural products between Australia and Vietnam.http://en.vietnamplus.vn/hoa-binh-businesses-look-for-opportunities-in-australia/111006.vnp

Forum discusses developing agricultural products' labels, brands


Developing chains of agricultural products in tandem with building labels and brand names was the focus of discussion at a forum in the central province of Quang Nam on April 28.The event was jointly organised by the National Centre for Agriculture Encourage-ment and the Quang Nam provincial Department of Agriculture and Rural Develop-ment.According to the Department of Processing and Trade of Agricultural Products under the Ministry of Agriculture and Rural Development, Vietnam is among leading agri-cultural producers in the world.The agricultural sector has eight products earning over one billion USD from exports, namely coffee, rubber, rice, aquatic products, cashew nuts, peppers, fruits and vegeta-bles, wood and wood products.Numerous agricultural products have been available at home and abroad with labels


BU

SIN

ES


and geographical indicators.However, 90 percent of Vietnam's agricultural exports are crude products, resulting in lower values, said Vo Thi Ly, deputy director of the Authority.Besides, over 80 percent of the nation's agricultural products are yet to have brands, logos, labels. Most of them are shipped abroad under foreign brand names, Ly added, stressing that it is a major disadvantage for domestic farm produce.Acting director of the National Centre for Agriculture Encouragement Tran Van Khoi pointed to the trend in recent years towards the development of agricultural produc-tion chains based on connection among farmers, cooperatives and enterprises, and the formation of large zones specialised in key crops.However, Vietnam's agricultural production overall remains small-scaled, limiting the sector's competitive capacity, according to Khai.He noted that while the free trade agreements Vietnam have signed help expand agri-cultural export markets, they also bring increasing competition.Khai underlined the strategic need for promoting and increasing competitiveness for Vietnamese agricultural products, including developing brands and securing their foothold on both the domestic and overseas markets.Participants pointed to difficulties hindering the building of brand names for agricul-tural products, such as the lack of a master plan to guide localities, enterprises; chang-ing regulation and poor market research.The Ministry of Agriculture and Rural Development aims to develop a programme on developing brands for key agricultural products by 2020, with immediate priority giv-en to mangoes, dragon fruits, tea, coffee and tra fish.http://en.vietnamplus.vn/forum-discusses-developing-agricultural-products-labels-brands/110990.vnp

Vinh Long expo on industry, trade kicks off


The 2017 Vinh Long expo on industry and trade opened on Sunday and will last until May 5 in the southern province of Vinh Long, attracting 92 enterprises from inside and outside the province.The exhibition has 211 booths, displaying consumer goods, interior decoration items, handicrafts and garments, as well as typical rural industrial products, agricultural products and specialties of provinces and cities inside and outside the Mekong Delta. Director of Vinh Long Department of Industry and Trade Pham Tu Phuong said the fair played an important role in enhancing trade promotion, contributing to boosting the socio-economic development of the locality.It also served as a platform for firms to meet and exchange experiences in technology transfer to improve product quality and design, as well as promote market develop-ment in the trend of integration, Phuong said.In addition, the fair was a place for enterprises, manufacturers and consumers to ex-change information on goods and market demands, thereby enabling them to orient their business strategies to meet the needs and tastes of consumers, he said.The fair also creates favourable conditions for consumers to access and use domesti-cally-produced goods with food safety and reasonable prices, at the same time pro-moting the campaign "Vietnamese people use Vietnamese goods."Further, it includes exhibitions showcasing the economic, cultural, social, security and defence achievements of Vinh Long and its potential and strengths to attract invest-ment.http://bizhub.vn/news/vinh-long-expo-on-industry-trade-kicks-off_285845.html

HCM City to host Top Thai Brands fair


Around 300 firms will present Thailand's internationally recognised brands to Viet-namese consumers at Top Thai Brands 2017, a trade fair to be organised in HCM City from May 11 to 14.The fair, jointly held by the Thai commerce ministry's department of international trade promotion and the Thai Consulate-General in HCM City, aims to boost the con-


BU

SIN

ES


nection between enterprises in both countries, facilitating their search for agents, dis-tributors and franchisees.Through the fair, both nations hope to enhance trade and investment cooperation, while providing a platform for businesses to widen their networks and further devel-op strategic partnerships.Top Thai Brands 2017 offers opportunities for industries such as food and beverages, home appliances, automobile and motor spare parts, cosmetics and healthcare, as well as service sectors such as education, tourism and business franchising.http://en.vietnamplus.vn/hcm-city-to-host-top-thai-brands-fair/111043.vnp

Workshop on intellectual property rights


The rapid development of technology, the Internet and social networks has resulted in significant development of e-commerce in Vietnam, however, it has brought challeng-es for many enterprises, especially in intellectual property protection.It was necessary to raise the awareness of community about the protection of intellec-tual property rights in general and the e-commerce environment in particular, Tran Van Tung, deputy minister of Science and Technology, told a workshop on intellectual property enforcement in e-commerce in Hanoi on Wednesday."The government, the Ministry of Science and Technology and other ministries and sectors have been working hard to prevent intellectual property infringement as well as infringements of intellectual property rights in the digital environment, but this work faces many difficulties," Tung said.Nguyen Nhu Quynh, deputy chief inspector the Ministry of Science and Technology, said enterprises were not fully aware of the protection of intellectual property rights in e-commerce.She pointed out difficulties including enterprises not being aware of the problem, dif-ficulties in identifying violating organisations or individuals, difficulties in collecting evidence and incomplete legislation.Le Ngc Lam, deputy director of National Office of Intellectual Property of Vietnam, said e-commerce had grown vigorously. "Due to the almost infinite author's privilege and the scope on the Internet, along with the development of e-commerce, online in-fringement has become a major challenge."E-commerce was developing very strongly in Vietnam, however, the sector had many shortcomings because it still lacks qualified staff, he said.In addition, co-ordination among agencies caused difficulties and obstacles, he added. "Functional units need to have training courses on e-commerce, strengthening the co-ordination activities between enforcement forces in the prevention and control of in-tellectual property infringement."As the responsible agency for intellectual property issues, the National Office of Intel-lectual Property of Vietnam would add sanctions for the electronic transaction envi-ronment, while co-ordinating with authorities to resolve domain name disputes and in identifying related issues to intellectual property infringement cases, said Lam, the representative of the office.http://www.vir.com.vn/workshop-on-intellectual-property-rights.html

Second Proof of Concept competition kicks off


Climate change mitigation is the key topic of the second Proof of Concept (PoC) com-petition recently launched by the Vietnam Climate Innovation Centre (VCIC).The contest, sponsored by the World Bank (WB) and the Ministry of Science and Tech-nology, was organised following the success of the first event which saw 18 businesses winning awards of innovation start-ups fighting against climate change in 2016.Speaking at the launching ceremony on April 28, Pham Duc Nghiem, VCIC deputy di-rector highlighted that young enterprises and start-ups play a crucial role in mitigating climate change's impacts on the environment by creating environmental-friendly, clean products, services and technologies and nudging them closer to people.Innovation products, services and business models joining the second PoC should be


BU

SIN

ES


in following categories: effective energy, sustainable agriculture, water management and purification, renewable energy technologies, information and technology and oth-er technologies related to climate change.Through the competition, start-ups and young businesses will receive international training models developed by experts from the WB and the US's leading incubator centres as well as call funds amounting to $75,000 for the development, deployment and extension of a product or service.http://english.vov.vn/economy/second-proof-of-concept-competition-kicks-off-348745.vov

Government Inspectorate urged to probe giant pulp project


Deputy prime minister Truong Hoa Binh has urged the government Inspectorate to in-vestigate a giant pulp project in Nghe An Province which has been left idle for years.Tan Hong pulp plant at Con Cuong District has a total investment of VND1.25 trillion (USD545.4 million). The plant's production lines were imported from China and would have an annual capacity of 45,000 tonnes.The planning for the plant's material zone was approved in 2009 and was built in 2010.In the 2011-2012 period, due to the production and business difficulties, the plant stopped buying material from local people.After being left idle for seven years, the Nghe An Department of Planning and Invest-ment has asked the provincial people's committee to stop the operation of the plant.Deputy prime minister Truong Hoa Binh has called on the government Inspectorate to probe the case to report the government before May 25.http://english.vov.vn/economy/government-inspectorate-urged-to-probe-giant-pulp-project-348649.vov

Vietnam third most expensive country to buy Starbucks: survey


Vietnam is among the top three most expensive countries to sip a Starbucks, compared to the US coffeehouse chain's home country, a survey finds.Financial research group ValuePenguin studied the price of a small, or 'tall' as Star-bucks names it, cup of latte in 39 countries to pinpoint where the drink is the biggest extravagance.To evaluate the information, data gathered in the local currency was converted to a dollar value reflective of the purchasing power within each of the countries covered, according to the company.The study eventually found that Vietnam is among four Southeast Asian countries where a Starbucks latte costs three times more than in the US."Southeast Asia is the standout region - where buying a small latte would be akin to paying $4.70-8.20 in the US, reflecting how Starbucks lattes are marketed as a luxuri-ous indulgence here," the US research firm said in an email on April 28.The average cost of a tall latte in the U.S is $2.75, which ValuePenguin says is "pricier than a regular cup of coffee... but less costly than a meal or an alcoholic drink when ordered out."In all 39 countries analysed by ValuePenguin, the relative cost of a tall latte is higher than in the US, and the variation among the markets is significant.In some countries, a latte hits the wallet only a little harder than in the US, particularly in the froth-friendly nations of Australia, the UK, New Zealand, and Canada, where Starbucks represents something less than a big indulgence, the company said in a re-port.But stepping up to the Starbucks counter in certain other countries can turn a simple coffee into a far bigger extravagance."Nothing matches the luxe indulgence of ordering a latte in Russia, where the tab would feel like spending $12 for the drink here at home," the report reads."In the other pricier countries for Starbucks, including India, Indonesia, and Thailand, the sticker shock would be more akin to spending $7 or so at home."In Vietnam a latte fetches the purchasing equivalent of $8.18 in the US, falling only be-


BU

SIN

ES


hind Indonesia and Russia."These seeming splurges underline how inexpensive many other goods and services are in those countries," the research firm commented."With bread, milk, or other staples less costly there than in the US, Starbucks seems like a big spend indeed."The figures may also explain why in many countries Starbucks is an exotic, status-lad-en chain--an embodiment, perhaps, of American affluence and indulgence."ValuePenguin said the study was conducted based on the most recent market data from 2016 gathered by Euromonitor International, a leading global provider of market research.http://english.vov.vn/economy/vietnam-third-most-expensive-country-to-buy-star-bucks-survey-348600.vov

Vietnam to import inexpensive US hepatitis drugs

03/MAY/2017 INTELLASIA| AFP

Vietnamese citizens, especially the underprivileged, will have access to inexpensive drugs produced by US biopharmaceutical company Gilead Sciences to treat hepatitis C infections.The cost of the drug will be just one per cent of the price of the company's brand-name drugs sold in the US to treat the same infections.The good news comes after the Vietnamese Ministry of Health and Gilead Sciences signed an agreement on Wednesday under which the US pharmaceutical company would provide enough of its brand-name drugs such as Sovaldi, Harvoni and Epclusa, to help Vietnam fight the hepatitis C virus.The company will also assist Vietnamese pharmaceutical enterprises in producing ge-neric drugs to treat hepatitis C in the future.Gilead Sciences plans to provide the health ministry with a list of foreign pharmaceu-tical companies it has authorised to supply materials for manufacturing drugs to treat hepatitis C.Trng Quc Cng, deputy minister of Health and Head of Drug Administration of Viet-nam, told Dan tri online newspaper that the ministry was considering allowing do-mestic enterprises to import materials to produce hepatitis C generic drugs soon.The ministry would, without delay, issue a distribution licence under the fast-track li-censing regime for hepatitis C drugs produced by Gilead Sciences, Cng said.It would submit a request to the government to add these Gilead Sciences drugs to the list of drugs imported under the government plan, he added.Gilead Sciences is a research-based biopharmaceutical company that invents, develops and commercialises innovative medicines, especially in areas where medical needs are unmet. Its product portfolio and its pipeline of investigational drugs include medi-cines for treating HIV/Aids, liver diseases, cancer, inflammatory and respiratory dis-eases, and cardiovascular conditions.It is estimated that Vietnam has around four million people with hepatitis C infections.Representative of a pharmaceutical company who declined to be named said the agreement was believed to be very meaningful to people contracting hepatitis C in Vi-etnam.It would help cut the cost of treating hepatitis C virus by a significant amount, she said.With the same drugs manufactured by the company, if patients were treated in Viet-nam, the treatment cost would be dozens of times cheaper than in foreign countries, she added."And if the health ministry adds the drugs to the list of medicines paid by health in-surance, poor patients in our country will benefit," she said.

Vietnam needs IT engineers to meet 4.0 industrial revolution


In Vietnam, IT university graduates are plentiful, but the number of IT engineers qual-ified to meet requirements in the fourth industrial revolution is insufficient to meet de-mand.A report of Navigos, a job consultancy firm, showed that the number of job openings


BU

SIN

ES


offered in the IT sector in Vietnam increased from 9,000 in 2014 to 15,000 in 2016. In 2016, IT was among the top five industries with the highest recruitment demand.Meanwhile, the demand is predicted to increase even more sharply in the time to come when Vietnam enters the 4.0 industrial revolution era.However, the Ministry of Industry and Trade, in its latest report, pointed out that while the worker supply in the IT sector is abundant, the number of workers qualified enough to satisfy requirements in their jobs is not high.One of the important criteria for assessing an applicant's qualification and knowledge is the professional certificate.Surveys have found that certificates on project management skills, Agile project man-agement, Cisco, Microsoft and Amazon Web Service are the most highly appreciated.Up to 54 percent of employers are willing to pay higher salaries to the candidates who have these certificates.According to Nguyen Thi Thanh Huong from Navigos Search Hanoi, recruitment de-mand is especially high for developers with Java, SQL, CSS and JavaScript languages. The demand for JavaScrip developers has increased significantly thanks to the mush-rooming of online service firms.Analysts said in 2017, technological trends in the world will have an impact on the Vi-etnamese IT market, including cloud computing, JavaScript, network security, Big Da-ta, Internet of Things and Docker.Regarding the pay for IT engineers, VietnamWorks, in its report released in March, showed developers in Vietnam can earn $1,300-2,000 if they have updated knowledge about the most advanced technologies.The high pay is attributed to the current recruitment demand which is expected to rise.The report showed the results of the survey conducted on 2,400 applicants and 70 re-cruiters in the IT sector in Vietnam.Fifteen years ago, the demand for IT personnel was mostly for the software outsourc-ing sector. However, the demand has shifted to the service sector with many software development firms having built their own offices and software development centers in Vietnam.HCM City remains the country's largest technology centre which had 53 percent of to-tal job openings, while Hanoi had 43 percent in 2016.According to MOLISA, Vietnam needs 80,000-100,000 workers for the IT sector every year. Meanwhile, there are 30,000 university graduates every year."I can introduce job opportunities with pay of $2,500. However, there are not suitable candidates in Vietnam," Huong from Navigos Search Hanoi.http://www.vir.com.vn/vietnam-needs-it-engineers-to-meet-40-industrial-revolu-tion.html

Kayak service to resume in Halong Bay


Visitors to Halong Bay can continue kayaking from May 1, weeks after the service was suspended by local government.Many travel agencies in the province have prepared to resume kayak rental service on the occasion of the upcoming holiday after Quang Ninh Province lifted the ban.Halong Bay currently has over 1,400 kayaks, with more than 300 of them operating in some areas of the bay and about 1,100 units carried on tour boats.Halong City announced on March 29 that kayak rental service on Halong Bay would be halted from April 1. Local authorities said the number of kayaks in the bay had been increasing rapidly while some service providers had not been approved to provide the service. Some providers even overcharged tourists, putting the reputation of Halong at stake.However, the ban faced stiff opposition from tourism firms because kayaking contrib-utes to the richness of tourism products in Halong Bay. The Ministry of Culture, Sports and Tourism later asked Quang Ninh Province to reinstate this service.According to a report on socio-economic performance in the first four months of 2017, Quang Ninh saw some 4.6 million tourists coming, up 12 percent over the same period


BU

SIN

ES


last year, including nearly 1.7 million international visitors, up 9 percent. Tourism rev-enue is estimated at over VND5,900 billion (US$260 million), up 20 percent year-on-year.http://english.thesaigontimes.vn/53690/Kayak-service-to-resume-in-Halong-Bay.html

New water park opens in Quang Ninh Province


Families are assured of a splashing time at the Typhoon Water Park, offering 12 attrac-tions, including a pool with manmade waves, that opens tomorrow (April 29) at the Sun World Halong Complex in the province of Quang Ninh.Park manager Parques Reunidos said the park has everything for everyone play areas for children and relaxing spots for adults.He said one of the interesting attractions is the 5-foot deep pool with artificial waves.We built it in such a way that visitors will feel like they are at the beach. The artificial waves switch every 15 minutes, so visitors will experience different waves, he noted.http://english.vov.vn/economy/new-water-park-opens-in-quang-ninh-province-348580.vov

HCM City opens jewellery streets


HCM City's District 5 authorities on April 27 introduced Nhieu Tam and Nghia Thuc as the first jewellery streets in the city, which will serve as the business quarter for jew-ellery traders and goldsmiths, and as a tourist attraction.Some households on Nhieu Tam Street have been making and selling silver and gold jewels and gems since the late 1980s. The area now is home to 55 businesses operating in jewellery and related items. Their products are supplied to many jewellery stores nationwide.District 5 expected that the streets will develop local economy and tourism. Each store will be equipped with a logo common to the jewellery street brand to attract tourists' attention. The district will also establish four stops that are also business venues deal-ing in gold, jewellery, jewellery molds and related tools.Truong Thi Minh Kieu, vice chairwoman of District 5, hoped the streets would become popular among residents and tourists.Gold traders expected to attain higher revenue thanks to tourism development in the area.Nguyen Thi Bach Phung, Kim Nguyen I gold shop owner, said she and other business households in the area are excited about the establishment of the jewellery streets.Pham Van Tam, owner of Kim Hao gold shop, said the shop was planning to send its staff to English and Chinese courses for serving foreign customers and add more serv-ices to satisfy visitors' demand.http://english.thesaigontimes.vn/53687/HCM City-opens-jewellery-streets.html End


030517Intellasia Finance Vietnam - HKBAV · 2017-05-03 · Hoa Binh businesses look for...

Documents

Transcript of 030517Intellasia Finance Vietnam - HKBAV · 2017-05-03 · Hoa Binh businesses look for...