Unsold salt volume falls in first six months

Vietnam’s unsold salt volume decreased in the first half of 2017, the result of lower productivity caused by complicated weather.

Unsold salt in the six months amounted to more than 385,460 tonnes, 45 percent of the unsold volume in the same period last year, according to the Department of Cooperatives and Rural Development under the Ministry of Agriculture and Rural Development.

Of that amount, more than 8,110 tonnes was in the northern region, 202,460 tonnes in the central region and 174,890 tonnes in the south.

About 13,643ha of salt were farmed between January and June, generating 405,170 tonnes of salt, equivalent to only 40.7 percent of the same period in 2016. 

This included 9,330ha of salt farmed by traditional methods and another 4,313ha farmed by industrial methods, respectively producing 317,207 tonnes and 84,863 tonnes.

Reference exchange rate up at week’s beginning

The State Bank of Vietnam set the daily reference exchange rate for VND/USD at 22,449 VND per USD on July 10, up 2 VND from the rate at the end of last week. 

With the current trading band of /- 3 percent, the ceiling rate applied to commercial banks during the day is 23,114 VND and the floor rate 21,770 VND per USD. 

The opening hour rates at commercial banks on July 10 morning stayed rather stable. 

Vietcombank kept its buying rate unchanged from July 7 at 22,710 VND but increased the selling rate by 10 VND to 22,790 VND per USD.

BIDV kept both rates unchanged from July 7, at 22,705 VND (buying) and 22,775 VND (selling). 

The green back is being bought at 22,690 VND and sold at 22,800 VND at Techcombank, the same as on July 7.

Credit balance of social policies bank rises

The Vietnam Bank for Social Policies (VBSP) said it had a total credit balance of nearly 166.43 trillion VND (7.3 billion USD) as of June 30, 2017, up 5.8 percent compared with the end of last year. 

The bank’s loans have supported and created jobs for more than 105,000 labourers, including close to 1,500 people who work abroad and nearly 11,800 students in difficult circumstances.  

They were also used to build more than 714,000 water supply and environmental hygiene facilities in rural areas and nearly 9,600 houses for the poor. 

Notably, overdue debts accounted for only 0.43 percent of the outstanding loans, according to the bank. 

VBSP General Director Duong Quyet Thang instructed VBSP units to continue improving credit quality in the entire system during the rest of this year, especially in poor performing branches. 

At the same time, efforts should be made in debt risk management and settlement and inspections in municipal and provincial branches, he said.

Shrimp export up nearly 16 pct in first half

Vietnam earned 1.56 billion USD from shrimp exports in the first half of this year, up 15.7 percent annually, according to the Vietnam Association of Seafood Exporters and Processors (VASEP). 

Of the figure, white leg shrimp export earnings were estimated at nearly 955 million USD, up 20.4 percent while tiger prawn export revenue hit 421 million USD, down 5.3 percent. 

The growth of shrimp exports pushed total value of fisheries shipments to 3.6 billion USD in the six months, a 14.6 percent increase. 

According to exporters, Japan has replaced the US as the leading importer of Vietnamese shrimp thanks to high demand and improved quality. Other major markets include the US, the European Union and the Republic of Korea. 

Shrimp export is forecast to keep growing in the second half of the year, especially during Christmas and New Year holidays. 

VASEP forecasts that shrimp export value will increase 9 percent to 3.4 billion USD this year.

Vietcombank’s pre-tax profit rises 20 percent in six months

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) posted more than 5.05 trillion VND (222 million USD) in pre-tax profit in the last six months, up 20.5 percent year on year and equivalent to 53.2 percent of the target for 2017.

The information was released by Vietcombank General Director Pham Quang Dung at a meeting to review the bank’s performance in Lam Dong province on July 7-8.

He said Vietcombank recorded positive outcomes in all activities, from capital mobilisation, credit growth and credit quality to services provision.

While the price of its shares topped the banking sector, the bank remained among the top three businesses in terms of market capitalisation. Its prestige was also affirmed by assessments from clients and international organisations, he added.

At the meeting, Chairman of Vietcombank’s board of directors Nghiem Xuan Thanh made proposals to the State Bank of Vietnam regarding the increase of Vietcombank’s charter capital, the development of the bank’s network, including the opening of a subsidiary in Laos and expanding its credit growth limit.

The central bank’s Deputy Governor Nguyen Dong Tien said he hopes Vietcombank’s achievements at the end of 2017 will be the best results across the banking system.

Shares forecast to rebound on Q2 reports

The VN-Index declined for the first time in six weeks due to heavy profit-taking pressure, but analysts expect a rebound this week following the release of the second-quarter business earnings.

The benchmark index of the HCM Stock Exchange inched down 0.1 percent after five sessions, closing on July 7 at 775.73 points.

Popular large-cap stocks that were the market engine early last week, like PV Gas (GAS), Vietinbank (CTG), Vietcombank (VCB), BIDV (BID), Hoa Phat Group (HPG), Sabeco (SAB) and Bao Viet Holdings (BVH), all slumped towards the end of the week due to rising selling pressure.

The selling peaked after the VN-Index hit nearly 783 points in the weekend session, the highest since early 2008, and pulled the market down.

Since the beginning of this year, Vietnam’s key stock index has gained about 17 percent to become the top performer in the region, surpassing Thailand, the Philippines and Malaysia, which have received big support from foreign capital.

“Though the unexpected decline in the weekend session slowed down the VN-Index growth, the market condition was not negative and investors’ sentiment remained stable around 770 points,” analysts at BIDV Securities Co wrote in a weekly report.

An average of 229 million shares worth almost 4 trillion VND (176.2 million USD) were traded per session on the HCM City’s exchange, up 6 percent in volume and 1 percent in value compared to the previous week.

The stock indices are likely to rise again as investors bet on second-quarter earnings reports that will start coming out this week, as well as new growth-boosting policies of the Government, analysts have said.

Meanwhile, money is flowing into penny and medium-small caps. Many shares of these groups hit the maximum daily rise for several consecutive days and were among the most heavily-traded stocks.

These included Tan Tao Investment and Industry (ITA), Hoang Quan Consulting-Trading-Serive Real Estate (HQC), Ocean Group (OGC), An Duong Thao Dien Real Estate (HAR) and HAI Agrochem (HAI).

On the Hanoi Stock Exchange, the hub of small- and medium-cap stocks, the HNX-Index expanded 2.5 percent for the week, ending on July 7 at 101.58 points.

Liquidity increased with an average of 81 million shares worth 785.4 billion VND traded a session, up 63.7 percent in volume and 30.3 percent in value compared with the previous week.

On July 7, the State Bank of Vietnam issued Decision No 1424 and 1425, effective July 10, which reduces the discount rate and refinancing rate by 0.25 percent and lowers the ceiling interest rate on short-term loans by 0.5 percent for priority sectors.

This is the first time since 2014 the central bank made this move to support the Government’s growth targets.

“In the context of increasing liquidity of the banking system… this policy will continue backing liquidity of commercial banks as well as the stock market,” BIDV Securities Co. analysts said.

Vietnam reported positive economic data in the first half of this year with the GDP growth reaching 5.73 percent, higher than 2012-2014 and 2016 figures. Export and import values were up 18.9 percent and 24.1 percent year-on-year, respectively; and inflation was at below 5 percent for a second year.

Analysts said the country’s stable economic growth was a solid foundation for attracting attract foreign capital, with an influx of 9.2 trillion VND (409 million USD) recorded in the year’s first half.

Govt strengthens oversight of kids’ milk products

The Ministry of Industry and Trade has issued a circular that will take effect on August 10 requiring milk processors, traders and importers to inform authorities in advance when they make price hikes of 5 per cent or more for dairy products for children aged below six.

In fact, they would need to re-register their prices rather than merely inform authorities.

Now they can fix prices and then inform authorities.

After the circular takes effect distributors must also publicise their retail prices.

The Ministry of Health is set to issue a list of dairy products and supplements for children under six to which the circular will be applicable.

PNJ profit jumps 54 per cent in first half     

Phu Nhuan Jewelry Joint-Stock Company achieved a pre-tax profit of VND471 billion (US$20.7 million) in the first half of the year, up 54 per cent over the same period last year to meet over 62 per cent of its 2017 plan.

Total revenue reached VND5.54 trillion, a year-on-year increase of 41 per cent, or 53 per cent of its target for this year. Retail sales of its PNJGold, PNJSilver, CAO FineJewellery brands saw impressive growth of 45 per cent.

PNJ opened 22 new stores in the period, taking the total number to 237 across the country and affirming its leading position in jewellery retail distribution.

With these successes, the company is confident to complete its business target set for this year in the first 10 months.

In parallel with business activities, PNJ has also received awards that recognise the company’s efforts and contribution to the jewelry industry in Viet Nam and the community. 

US trade increases over 40 times in 16 years

The General Department of Vietnam Customs have reported that trade between the US and Vietnam increased by 43.5 times between 2000 and 2016 with turnover rising from USD1.08bn to USD47.15bn.

The average annual growth rate of import-export in the past 16 years was 26.6%. The report emphasised that the US was Vietnam's current major export market with an annual export growth rate of 28.1%, from 2000's USD732m to 2016's USD38.45bn. Import growth rate also reached 22.2%, from USD354m to USD8.7bn.

Vietnam enjoyed a trade surplus with the US for years. The balance of trade between the US and Vietnam in the first four months topped USD9.42bn.

According to the United Nations International Trade Statistics Database, Vietnam ranked 12th among the US’ export markets, accounting for 1.9% of the US' import turnover. It is ranked 27th among the import markets from the US.

In the first four months, the trade turnover reached USD15.47bn, an increase of 11% compared to the same period last year. Imports and exports to the US now account for 12.3% of Vietnam's total trade turnover.

Most Vietnamese export goods still have limited added value added such as footwear, wood furniture and textiles. Imported products from the US include food, electronic devices and spare parts.

Uber Policy Director meets Vietnamese startups

More than 100 Vietnamese startups and technology students met with Ms. Amy Kunrojpanya, Director of Public Policy & Communications, Asia Pacific, at Uber, on “Building a Reputation for Startups” in Hanoi on July 7.

According to Ms. Kunrojpanya, startups should build their image from the beginning of product development. “With an effective strategy, despite limited budget and resources, businesses can build a successful reputation,” she said.

She also stressed that investing seriously in the product is the most important matter. At the same time, startups need a creative media team to communicate the core values of its products.

Three representatives from the Abbycard, Hteek, and NIBU startups received consultation from Ms. Kunrojpanya.

As a leading expert in advertising and media, before joining Uber she held key positions at major global corporations such as Google, Coca-Cola, and Syngenta.

She is now responsible for promoting Uber’s reputation and assisting with its mission of providing safe and reliable transportation to all people around the world through public policy activities and establishing government relations across Asia.

Uber has recently been entangled in a dispute over its carpooling solution in Vietnam, with the Ministry of Transport asking that Uber and Grab not be permitted to conduct more than one contract per trip.

Uber’s growing presence in over 450 cities in 70 countries and territories ensures overseas visitors have a familiar and safe way to explore Vietnam and visit a broader and more diverse range of neighborhoods.

Uber entered Vietnam in July 2014 and late last year the country became the first in Southeast Asia to launch cash payments. uberMOTO was also launched earlier this year, providing motorbike taxis with lower fares.

Exports to Thailand see upturn trend

Exports to Thailand increased by 23.56% to US$1.7 billion in the first five months of this year, according to the General Department of Vietnam Customs.

Among export items, paper and paper products enjoyed a sharp growth of 173.36% to US$8.4 million, trailed by coal (up 164.9% to US$4.1 million) and crude oil (up 161.83% to US$146.9 million).

Telephones and components topped among export products to the market with US$408.4 million, up 20.4%, followed by computers, electronics and components with US$213.5 million, up 56.71%.

In general, most products to Thailand saw a growth in the period, such as electric wires and cables (up 76.02%), rubber (up 55.93%) and coffee (up 58.7%). Only 16.6% of export products suffered a decline, typically petroleum (down 99.02% to only US$299,200).

Singaporean group wants to build high-class hospital in Binh Dinh

Singaporean CPG Corporation wants to build a high-class hospital with around 150 beds in Quy Nhon City, Binh Dinh province, said Jimmy Tsen Chee Nam, General Director of CPG Vietnam at a recent meeting with Phan Cao Thang, vice chair of the provincial People’s Committee.

During a working tour of Binh Dinh on July 7 to seek investment opportunities, Mr Chee Nam said CPG is one of the leading development professionals in the Asia-Pacific region, providing building and infrastructure development and management services.

CPG Vietnam is taking part in more than 100 infrastructure development projects and the design of some airports, hospitals and hotels.

CPG also wants to cooperate with Binh Dinh province in medical personnel training in order to develop Quy Nhon City into a destination for health tourism, said Mr Chee Nam.

For his part, Mr Thang appreciated the goodwill of CPG and believed that it will join some projects in the province, especially in urban development.

He pledged to create favourable conditions for the group to participate in local projects in an earliest time.

Ericsson modernises real-time charging for VNPT

VNPT, a leading telecom operator in Vietnam, has chosen Ericsson (NASDAQ: ERIC) as a strategic partner to modernise its charging and business support systems.

Ericsson modernizes real-time charging for VNPTEricsson modernizes real-time charging for VNPT

The modernisation will enable service convergence and advanced charging capabilities, and improve the user experience for VNPT’s 40 million pre-paid and post-paid subscribers. The new system will also reduce operational costs and lay the foundations for the operator’s transformation to a digital enterprise.

The Ericsson Charging System is replacing VNPT’s legacy infrastructure, and the contract includes a backend IT peripheral system that will speed up deployment and migration. The backend system will simplify the integration of existing IT applications, taking full advantage of the new charging features and providing a flexible platform for VNPT to deploy new and innovative services.

With the Ericsson Charging System in service, VNPT’s subscribers will be able to request and update account information in real-time and automatically get notifications on costs, balances, and bonuses. The system will also give VNPT a better understanding of subscriber behaviour and make it possible to rapidly create personalised offers, for example charging individual subscribers for bandwidth or specific services.

Nguyen Nam Long, general manager of VNPT Network, said, "Ericsson’s modernisation of our charging system gives us the agility needed to meet the changing needs of our subscribers who expect greater control, personalisation, and flexibility. It also helps us prepare for the introduction of 4G and makes it easier to further develop our service offerings.”

VNPT has got a licence to operate a 4G network in Vietnam and has been investing in 4G network infrastructure. The Ericsson Charging System will be put in service by VNPT during the fourth quarter of 2017, allowing the company to launch 4G services on this new platform.

Denis Brunetti, head of Ericsson Vietnam and Myanmar, said: "VNPT and Ericsson have a close collaboration. We continuously introduce new and advanced technology in VNPT’s network and the Ericsson Charging System will reduce overall service management and service delivery costs. It will also enable VNPT to increase subscriber satisfaction and to capitalise on new business opportunities.”

The Ericsson Charging System is an award-winning, scalable, and flexible online charging system with a strong focus on user-experience. Ericsson’s leadership in real-time charging is substantiated by implementations for more than 200 customers managing around 2.1 billion subscribers worldwide.

SCG gunning for increased market share after takeover

Siam Cement Group (SCG), Thailand’s largest manufacturer of cement and construction materials, has made moves to secure and increase the market share of Song Gianh Cement in Central Vietnam.

Three months after acquiring Song Gianh Cement with a 100 per cent buyout from Vietnam Construction Materials JSC (VCM), SCG continues to entrust Thanh Hung Ltd. Company (Le Duan, Dong Giang, Dong Ha city, Quang Tri province) with the role of main distributor of Song Gianh Cement’s products.

Despite fierce competition and the emergence of new brand names in the cement market, Song Gianh Cement still holds certain market advantages in Quang Tri and other central provinces thanks to consumers’ familiarity with its products earned over many years. Furthermore, Song Gianh Cement has rather flexible and competitive prices.

According to Thanh Hung, in the first six months of this year, Song Gianh sold 20 per cent more products than in the same period last year. “At this rate, it is highly possible to achieve the sales target of 100,000 tonnes of cement this year,” said Tran Thi Tuyet, director of Thanh Hung.

SCG’s representative confirmed the statement, as well as its plan to focus on improving quality and step up marketing activities to further promote Song Gianh Cement’s position in the central market.

At the same time, STARCEMT brand of Van Hoa Cement factory continues to report growing sales and increased market share, as well as maintains brand recognition in Ho Chi Minh City and the south western region.

Earlier this year, SCG Cement-Building Materials, a subsidiary of SCG, acquired 100 per cent stake (approximately $156 million) in VCM.

VCM owns Song Gianh Cement Factory, with a capacity of 1.4 million tonnes of clinker per year and five crushing plants, providing two million tonnes of cement per year for the central region under the brand name Song Gianh Cement.

In addition, Van Hoa Cement Factory, with a capacity of 1.6 million tonnes of clinker and four crushing plants situated at convenient locations in Ho Chi Minh City and the south western region, produces premium brand cement STARCEMT at a stable output of 1.8 million tonnes of cement per year.

With current productivity at above three million tonnes, SCG says there is high likelihood they will reach maximum capacity.

After this acquisition, the total cement production capacity of SCG in Asia reached 10.5 million tonnes per year, in addition to 23 million tonnes per year in Thailand.

In several events promoting Thai-Vietnamese investment in 2016, SCG representatives announced plans to raise capital through expanding investment in available projects in Vietnam and paying attention to mergers and acquisitions in the cement and construction material industry in order to secure SCG’s position in Vietnam.

One of SCG’s largest deals was the acquisition of Prime Group. In December 2012, SCG acquired 85 per cent of Prime Group for $240 million.

In 2011, SCG also acquired Buu Long Cement in Dong Nai and invested an additional $5.5 million to increase the plant’s capacity to 200,000 tonnes per year.

According to several cement enterprises, with their current market share and financial assets, Thai businesses have a lot of advantages in acquiring and making business plans for Vietnamese cement factories.

According to Luong Quang Khai, chairman of the Board of Vietnam Cement Industry Corporation (Vicem), Vietnamese cement manufacturers will have to step up their game and prepare for increasingly intense competition on their own turf.

A new era for German-Vietnam renewable energy cooperation

Renewable energy was on top of the agenda of the German-Vietnamese Business Forum that took place on July 6, 2017 in Berlin, Germany.

An important part of the business forum was the signing of memorandum of understanding (MoU) of investment projects worth EUR4 billion in total. One of them was concluded between German renewable energy market leader Enercon and Trung Nam Corporation from Vietnam.

In his keynote speech, Vietnamese Prime Minister Nguyen Xuan Phuc also emphasised the many opportunities for business cooperation in the field of renewable energy between Vietnam and German companies.

The signing, which was qualified by Brigitte Zypries, Federal Minister for Economic Affairs and Energy, in her opening remarks as “a big success,” will lay the foundations for the two companies’ collaboration in the next five years. The collaboration is expected to contribute to the generation of 500 megawatts of “green” electricity in Vietnam.

As part of the business forum, government representatives and companies from Vietnam and Germany, including many active stakeholders in the energy sector, also had a chance to listen to a panel discussion about ”Business Opportunities in Vietnam.”

With both countries undergoing rapid changes in their energy sectors, in 2013, energy became one of the priority areas of Vietnamese-German development cooperation. While Vietnam, with a rapidly developing economy and fast-growing energy demand, is undergoing a boom in power generation and transmission, Germany has established itself as a leader in renewable energy technologies and services.

Many German companies are actively exporting renewable energy products and know-how in Vietnam and around the globe. The two countries are working together to ensure that Vietnam can pursue a green growth path in line with its multilateral agreements.

Shares of Viet Capital Securities hit the ceiling on first trading day

Viet Capital Securities JSC had a successful debut on the Ho Chi Minh Stock Exchange today.

This morning, Viet Capital Securities (VCSC) listed 103 million shares on the Ho Chi Minh Stock Exchange, pricing each stock at VND48,000 ($2.11). The shares immediately hit the roof, rising by 20 per cent to reach VND57,600 ($2.53) during the morning trading session.

This surge confirmed earlier forecasts by the firm’s deputy CEO Dinh Quang Hoan, who was positive that VCSC would attract overwhelming demand from investors.

Prior to today’s listing, VCSC has held a private placement for investors, who altogether bought 10 per cent of the shares, to raise VND720 billion ($31.65 million) for the brokerage. At least 28 overseas funds have joined the placement, hailing from Singapore, Thailand, the US, Europe, and Japan, together with Vietnamese names, such as Dragon Capital, Vietnam Holding, and PXP.  

In 2016, VCSC reported VND894 billion ($39.3 million) in revenue and VND338 billion ($14.8 million) in post-tax profit. The brokerage aims to boost this revenue by 22 per cent in 2017, while profit is anticipated to grow by 30 per cent.

New Vietnam-US working group holds first meeting

Vietnam and the US held the first meeting of the bilateral Working Group on the Acceptance of the Return of Vietnamese Citizens on July 5.

As outlined in the Joint Statement for Enhancing the Comprehensive Partnership between the US and Vietnam, the Working Group was established by Prime Minister Nguyen Xuan Phuc and President Donald Trump on May 31.

The Ministry of Public Security hosted the working group, with participation from the Ministry of Foreign Affairs and the Office of the Government. The US Department of Homeland Security and the Department of State represented the US.

The two governments held initial discussions on a wide range of issues relating to the return of Vietnamese citizens subject to final orders of removal from the US. Both sides intend to continue discussions at a future date. 

Relations between Vietnam and the US have seen significant strides forward under the bilateral comprehensive partnership set up in 2013 as well as the Joint Vision Statement reached during the historic visit to the US by Party General Secretary Nguyen Phu Trong in July 2015 and the Vietnam-US Joint Statement reached during the visit to Vietnam by former President Barack Obama in May 2016.

Prime Minister Nguyen Xuan Phuc visited the US at the invitation of President Donald Trump from May 29 to 31.

FPT signs two deals at Vietnam-Germany Business Forum

The FPT Group signed strategic cooperation agreements with Siemens and BPCE International at the Vietnam-Germany Business Forum in Berlin on July 6, witnessed by Prime Minister Nguyen Xuan Phuc.

It will cooperate with Siemens to exploit MindSphere, an open Internet of Things (IoT) platform based on cloud computing and used in many industries. The two will train about 1,000 workers in Vietnam.

Siemens will also provide digital services based on MindSphere in all areas in Asia-Pacific and Europe, with FPT working with Siemens to develop the systems and connect devices.

FPT will work with BPCE International, meanwhile, in developing solutions for digital banking.

While on his working visit to Germany, Prime Minister Phuc also met with leading German enterprises such as Siemens, BMW, Deutsche Bank, Talanx, Schaeffler, Airbus Defense & Space, Philips Lighting, and BPCE International, which all expressed an interest in cooperating with FPT in digitalization, IT, and software services.

According to Mr. Truong Gia Binh, CEO of FPT, working with IT giants is an important step for it to quickly build its competence and provide services and solutions to meet demand in Vietnam and globally. FPT is currently partners in cloud computing and IoT with General Electric and Amazon Web Services.

In the EU, it has representative offices in Germany, France, and Slovakia, with a total workforce of 300. It targets to grow its EU revenue by 28 per cent this year, or $35 million. In 2016 the EU contributed 11 per cent of its revenue in foreign markets. 

2016 consolidated revenue was VND40.5 trillion ($1.81 billion), up 1.4 per cent against 2015, with pre-tax profit of VND3 trillion ($134.5 million), up 6 per cent, and after-tax profit VND2.57 trillion ($115.5 million), up 6 per cent.

After-tax profit attributable to the parent company’s shareholders and earnings per share (EPS) were both up 3 per cent, equal to VND2 trillion ($89.7 million) and VND3,925 ($0.14), respectively.

Its 2017 revenue target is VND 46.6 trillion ($2.05 billion), with pre-tax-profit to come in at VND3.4 trillion ($149.9 million), increases of 15 per cent and 13 per cent, respectively.

FPT’s overall goal is to become a global conglomerate and a pioneer in the digital world from 2017 to 2019.

Many industrial production sectors see high growth

The index of industrial production (IIP) in the first six months of this year was reported at a year-on-year increase of 6.2%, with the majority of industrial production sectors demonstrating high growth.

According to the General Statistics Office (GSO), the IIP in the first quarter of this year grew 4.3%, while the IIP in the second quarter rose sharply at 7.8%.

In particular, 17 out of 21 industrial production sectors posted higher growth in the second quarter in comparison with the first quarter.

The processing and manufacturing industry reported the highest growth rate at 10.5%, which in turn contributed 7.4 percentage points to the overall IIP growth.

The power production and distribution sector also surged by 8% and water supply and waste and wastewater treatment soared 7.8%.

Meanwhile, the mining industry decreased by 8.2% (mainly due to the reduction in the volume of crude oil and gas) therefore reducing the overall IIP by 1.8 percentage points.

The GSO also pointed out a number of industrial sectors reporting high IIP, in the first six months of 2017 compared to the same period in 2016, including metal production up by 33.8% and production of electronics products, computers and optical products up 15.3%.

Several industrial products saw high growth in the six months, namely television up 39.1% over the same period last year; laminated steel up 26.1%; crude iron and steel up 25.6% and fertilizer up 19.4%.

The inventory index of the processing and manufacturing industry, as of June 1, 2017, rose 10.2% when compared to the same period last year.

Ha Quang Tuyen, Director of the National Accounts Department under the GSO, said that Vietnam has a lot of room to achieve the set economic growth targets despite facing difficulties in industrial production in the remaining months of this year.

Tuyen noted that the processing and manufacturing industry will have many opportunities for further development, as several large steel projects are scheduled to begin operation by the end of this year.

PM approves ODA capital advance for first metro route

Prime Minister Nguyen Xuan Phuc has agreed to give HCMC an advance of official development assistance (ODA) funds in mid-term public investment plan in the phase of 2016-2020 for building the first metro line project Ben Thanh-Suoi Tien on schedule, announced the Government Office yesterday.

The PM assigns the Ministry of Planning and Investment to work with the Ministry of Finance to report to him a specific capital proposal for the project before July 30, the announcement said.

The two ministries should work together on solutions to speed up disbursement for ODA projects in the city and report to him before August 15.

He asked the Ministry of Planning and Investment to guide the HCMC People’s Committee to adjust total investment capital for the first metro route and the second Ben Thanh-Tham Luong, as per the city’s earlier proposal, and report the funds change to the Government for approval.

Mr. Phuc agreed in principle to the city’s receiving of a EUR200 million loan from German Development Bank to build the second metro line, assigning the Ministry of Finance and the Ministry of Planning and Investment to guide the city People’s Committee to do relevant procedures and report to him before August 15.

To speed up the progress of Thu Thiem New Urban Area, the PM permits the city to appoint investors to build the exhibition center complex in the area as per regulations. Chairman of the city People’s Committee will take personal responsibility to the PM about that.

He agreed with supplementing four bridges, canal dredging and digging projects into technical infrastructure in northern residential areas and building North-South road in Thu Thiem New Urban Area under BT (Build-Transfer) form.

The PM approved the policy of supplementing VND9,963 billion (US$438.28 million) for urgent anti-flooding projects in HCMC. The Ministry of Finance and the Ministry of Planning and Investment have been tasked guide the city People’s Committee to complete procedures and soon implement projects. They should send him a report before July 30.

The city has been asked to submit to him an anti-flooding project with visions till 2050 next year.

According to the PM’s conclusions, HCMC economics must continue creatively to create a motivation for sustainable development and maintain to be a locomotive of the country to integrate into the world and region’s economies.

The city should continue improving investment and trading environment, competitiveness, boosting fair competition and leading the country in administrative reform and one door mechanism. It must be listed in the group of five localities leading in competitiveness index and foreign direct investment attraction.

The Prime Minister encourages HCMC authorities to continue innovation in thinking, being enterprising, seeking breakthrough directions and new ideas to further develop the city.

After 30 years of reform, HCMC has made remarkable development achievements, contributing to 23 percent of the country’s gross domestic product and 28 percent to state budget in 2016. Private businesses have become a strong motivation of the city’s growth, accounting for 59.5 percent of gross regional domestic product and 65 percent investment capital last year.

Export declines, 26 million tons of cement in stock

According to the Vietnam National Cement Association (VNCA), domestic consumption of cement in 2017 is estimated to reach around 60 million tons, leading to an abundance of 26 million tons in stock. 

VNCA said that the sector’s total productivity is 86 million tons while just 60 million tons are estimated to consume in local market.

VNCA also predicted that the consumption of cement in 2020 will be able to reach round 82 million tons or 36-47 million tons will be abundant.

Accordingly, VNCA Chairman Nguyen Quang Cung warned domestic cement enterprises should take heed to manufacturing technology and enhance products’ competitiveness for time-saving and cost save.

Additionally, enterprises must improve its production, distribution, consumption and taking care of consumers for sustainable export.

Rice price hikes in Mekong delta

Early July, prices of rice in the Mekong delta continued increasing, making local farmers are feeling exhilarated in their production. 

High rice price has been remained unchanged in six months without the government’s intervention.

Farmer Tran Van Ngoan in Hau Giang Province’s Long My Town said that he sold rice of 0.5 hectare with VND5,150 per kilogram, earning profit of VND10 million. As a result, his family continued the fall-winter crop early with the hope to sell at a high price.

With the productivity of 6 tons a hectare and the price of over VND5,000 a kilogram, farmers in Hau Giang net VND20 million per hectare.

So far, farmers in Hau Giang have harvested rice in 20,000ha of the summer-fall crop. 70 percent of rice paddy fields in the province are grown from high quality seeds because they would supply high quality rice for export. This is a positive sign when farmers take heed to high quality seed.

The remaining areas are grown low quality for locals to make vermicelli for domestic markets, said director of the Department of Agriculture and Rural Development Nguyen Van Dong.

At present, farmers are harvesting 350,000ha of rice.

Moreover, rice export is showing good sign. The Vietnam Food Administration (VFA) said that traders offer to buy dry unhusked rice at the cost of VND5,400 - VND5.500 a kilogram and other variety at VND5,900 - VND6,000 kg.

Five-percent broken rice without package is quoted at VND8,300 – VND8,400 per kilogram and 15-percent broken rice is sold at VND8,100 – VND8,200 a kilogram and 25-percent broken rice fetch VND7,800 - VND7,900 a kilogram.

Early in 2017, VFA set a rice export target of 6.4 million tons, a year-on-year rise of 1.4 million tons. By the end of June, 2017 exporters sold nearly 3 million tons; accordingly, it is expected to be able to reach the 2017 target easily.

Government encourages people to use biofuel E5

Vietnam's Ministry of Industry and Trade July 7 liaised with petrol enterprises on the road map to replace biofuel E5 for popular kinds of petrol. 

Representatives from petrol companies said that the government encourages consumers to switch from the popular A92 gasoline to the ethanol-mixed biofuel E5 by stopping selling the popular gasoline A92 from January 1, 2018 yet the government should offer competitive prices for consumers to compare.

Some enterprises proposed to have preferential tax on imported materials and reduce environment tax for biofuel E5 to encourage people to use the environmentally friendly gasoline.

Demand for E5 fuel has not been as high as expected, with consumers reluctant to change their habit

Cassava is major material to make biofuel E5. Vietnam has 500,000 hectare of barren land suitable for growing the tree. This also helps farmers to earn more and to maximize the land.

Vietnam Airlines moves to new terminal at Jakarta airport

The national flag carrier Vietnam Airlines (VNA) announced that it will operate services at the new terminal T3 of the Jakarta International Airport in Indonesia, starting from July 12.

Vietnam Airlines passengers traveling to/from Jakarta International Airport will carry out airport procedures, get/send luggage and leave/board at check-in counters 5,6,7,8 in the C area at Terminal 3 instead of the Terminal 2 (T2). VIP lounges located at the entresol, a low storey between the 2nd floor and the 3rd floor.

The change aims to improve the carrier’s service quality and ensure convenience for passengers. VNA will provide support and guidance for passengers to move into the new terminal

SkyTeam member airlines, such as Korean Air, KLM, China Airlines, Garuda Indonesia have also planed to move to the terminal 3.

Jan-Jun retail sales grow 10%

Vietnam’s retail market kept strong growth momentum in the first half of 2017, with sales revenue estimated to expand 10.2% year-on-year to US$64.3 billion.

Data of the General Statistics Office indicates the country’s retail revenue in June edged up 10.3% against the same period last year to VND243.5 trillion (about US$10.85 billion).

Market watchers said the domestic retail market had gained higher growth than other markets. According to U.S. consulting firm A.T. Kearney, Vietnam jumped five places to sixth in the Global Retail Development Index (GRDI) which came out in early June.

The GRDI report showed Vietnam trailed behind big markets like India, China, Malaysia, Turkey and the United Arab Emirates but outdid some others such as Indonesia, Thailand, the Philippines, Kazakhstan and Saudi Arabia.

Some sectors in the retail market posted strong growth in January-June, including food and foodstuffs with growth of 10.6%, textiles and garments (9.5%), home appliances (8.7%), vehicles (8.7%) and stationery and educational goods (5.7%).

Early this month, Thai retailer Central Group opened a B2S (business to school) stationery store in HCMC, its first in Vietnam. B2S is the leading stationery retail brand in Thailand. Seeing growth potential here, leaders of B2S are planning 30 B2S stores in Vietnam in the next five years.

According to A.T. Kearney, convenience stores and minimarts are the fastest-growing market segments in the nation. In mid-June, the first 7-Eleven store was opened with great fanfare in HCMC, becoming a new rival of existing players such as Shop&Go, Circle K, B’s Mart, FamilyMart and MiniStop with extensive convenience store networks.

All of the convenience store chains in Vietnam are owned by foreign firms.

With this growth momentum, Vietnam’s retail revenue is projected to jump to nearly US$130 billion this year, compared to US$118 billion in 2016 and US$110 billion in 2015.

The country’s retail market still has room for more growth as modern retail channels account for 25% of total retail revenue, and are located in major cities.

VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET