South Korean SY Panel Group signs for Bac Lieu’s largest solar power plant

SY Panel Group will develop a $450 million solar power plant in Dong Hai district of the Mekong Delta province of Bac Lieu, according to information published on newswire Bac Lieu.

Aiming to affirm the company’s determination to implement the project, a representative of SY Panel signed a memorandum of understanding (MoU) with the Bac Lieu Department of Planning and Investment.

According to the MoU, the construction of the two above projects, which will cover an area of 400 hectares, will last until June 2019. The construction of the solar power plant alone will be divided into two phases. The first phase of the project will have a capacity of 50MW, while the second will bring the capacity up to 300MW.

Speaking at the signing ceremony, Chairman of the Bac Lieu People’s Committee Duong Thanh Trung vowed that the province will provide the best possible conditions for the investor to implement the project.

Vietnam in general and Bac Lieu in particular are considered ideal destinations for investment in the solar power sector due to the favourable climate with solar irradiance of 4.3kWh per square metre and the average 2,000 hours of sunlight each year. 

Besides, the government issued favourable policies to stimulate investment in the sector. Notably, on April 11, the government issued Decision No.11/2017/QD-TTg on an incentive mechanism for developing solar power projects.

Decision 11 is considered exciting news for domestic and foreign investors interested in the Vietnamese electricity market, especially since it requires Electricity of Vietnam (EVN) to purchase all electricity produced by grid-connected projects at a minimum of 9.35 cent per kWh.

Furthermore, aiming at accelerating the development of registered projects while simultaneously luring in more new investment capital, the World Bank and the Ministry of Industry and Trade (MoIT) plan to implement the pilot programme to auction solar power with the floor price of 9.35 US cent per kWh.

Accordingly, the Vietnamese government will issue set capacities (e.g. generating 500MW by 2020) and companies will be able to bid with complete project plans and feed-in-tariffs. The winner, generally the investor offering the best prices, will be awarded the project and the power purchase agreement to then arrange capital, land, and complete the advertisement procedures to implement the project.

The programme is expected to be implemented before the decision encouraging solar power development in Vietnam expires in June 2019.     

EU inflows to ride out EVFTA delays

A delay in the EU’s ratification of its free trade agreement with Vietnam until next summer will not affect the EU’s investment flow into the Southeast Asian country.

Bernd Lange, a member of the European Parliament and Chair of the Committee for International Trade – which has a key role in the EU ratification of free trade agreements with non-EU partners - told VIR that “the EU ratification of the EU-Vietnam Free Trade Agreement (EVFTA) is expected to happen in summer 2018 at the earliest”.

The trade pact, over which negotiations concluded in late 2015, was expected to be officially adopted by late 2017 and take effect in early 2018.

“The EVFTA’s delayed ratification is not due to any political pressure, but to technical issues, such as legal reviews and translations. We want to see a perfect deal for both sides,” Lange said.

He also noted that the slow ratification “will not affect European investment flows into Vietnam”.

“I don’t think that the delayed ratification will slow down European investment into Vietnam, because although many European investors and firms are worried about the slow ratification, they are still seeing lots of opportunities for doing business in the country,” Lange said.

According to Vietnam’s Ministry of Planning and Investment, as of August 20, European firms have nearly 2,500 investment projects registered at nearly $44 billion in Vietnam, respectively accounting for 10.43 and 14.23 per cent of the country’s total number of foreign direct investment (FDI) projects and total attracted FDI capital.

“The EU is a big investor and the number of EU investors interested in investing in Vietnam is growing strongly,” Lange said. “After EVFTA takes effect within 2018 or a bit later, EU investors will be able to greatly benefit from the EVFTA’s tariff cuts and provisions in investment incentives and protection.”

For example, the EVFTA will create a framework to resolve any trade and investment disagreements that may occur between the EU and Vietnam about the interpretation and implementation of the agreement. The system is intended as a last resort, should the parties fail to find a solution by other means. It operates through a fixed set of procedures and timeframes. Should parties fail to reach an agreement through formal consultations, they can request the establishment of a panel, made up of independent legal experts.

EVFTA will eliminate more than 99 per cent of tariffs. The EU will eliminate duties for thousands of items sourced from Vietnam, while Vietnam will liberalise 65 per cent of import duties on EU exports to Vietnam at entry into force, with the remainder of duties being gradually eliminated over a 10-year period.

For example, Vietnam will apply liberalisation for almost all EU machinery and appliances at the EVFTA’s entry into force, as well as wines and spirits (after seven years), frozen pork meat (after seven years), beef (after three years), and dairy products (after a maximum of five years).

Bruno Angelet, Ambassador and Head of the EU Delegation to Vietnam, said that the EVFTA is expected to help trigger a new wave of high-quality investments in both directions, supported by an updated investment dispute resolution system.

Upon the EVFTA’s implementation, it is estimated that Vietnam’s GDP could rise by over 15 per cent and that the value of its exports to the EU could increase by almost 35 per cent.

Van Thinh Phat: luxury hospitality developer with empty promises

Van Thinh Phat has acquired several land plots in Ho Chi Minh City and neighboring provinces, but many of these projects have been lying undeveloped for a long time.

In 2015, the Long An People’s Committee has agreed in principal to grant Van Thinh Phat permission to develop 36 projects with a combined area of 2,159 hectares in Can Giuoc district, about a 40-minute drive away from Ho Chi Minh City. However, many of these projects remain undeveloped as the group has been facing obstacles in site clearance and compensation.

Also in the same year, Van Thinh Phat was green-lighted by the Ho Chi Minh City People’s Committee to implement Saigon Peninsula in District 7. The project had an investment capital of $6 billion, but has been left idle all the same.

In the beginning of 2016, Van Thinh Phat made a splash in the property market by taking over Thuan Kieu Plaza in District 5. The complex was jointly developed by Saigon 5 Co., a subsidiary of Saigon Real Estate Corporation, and Hong Kong’s Kings Harmony Intl., Ltd.

Thuan Kieu Plaza consists of three buildings housing 650 apartments, offices for lease, trade centers, recreational zones, and parking lots. Opening services in 2005, the complex was hoped to boost economic development in District 5 and become a bustling commercial centre. However, Thuan Kieu Plaza has  been neglected for over ten years now.

In 2017, Van Thinh Phat has revamped and repainted a building after acquiring a land plot of 10,000 square metres. Still, the developer has yet to launch any apartments or offices, apart from leasing commercial venues in trade centres.

In 2016, a daughter of a Van Thinh Phat businesswoman spent VND700 billion ($30.8 million) to purchase a French-style villa fronting the three roads of Vo Van Tan, Ba Huyen Thanh Quan, and Nguyen Thi Dieu streets in District 3. The 3,000-sq.m villa has yet to be renovated for commercial or service functions.

Last year, Van Thinh Phat also warmed up the central business district (CBD) market when seeking the municipal city’s approval for investment in the golden area of Dong Khoi-Nguyen Hue-Ngo Duc Ke streets and the triangle of Tran Hung Dao-Nguyen Thai Hoc-Pham Ngu Lao streets.

Van Thinh Phat has teamed up with Larkhall Holding from Hong Kong to develop the 11,160-sq.m area bordered by Ngo Duc Ke, Nguyen Hue, Huynh Thuc Khang, and Ho Tung Mau streets in the heart of Ho Chi Minh City. The developers are seeking approval from the municipal authority to implement the project, which is likely to reach a height of 40 storeys.

In addition to hunting for remaining golden land plots in District 1, Van Thinh Phat also proposed the city to produce a detailed planning for another complex along the Saigon River near Bach Dang Wharf in May last year.

Ho Chi Minh City authorities had called for investment in the area running from Ton Duc Thang Museum to the Ton Duc Thang-Ham Nghi intersection. The proposed project has a total area of 17.08ha, with 7.02ha of parkland and an additional 10.06ha over the surface of the Saigon River.

Previously, Van Thinh Phat has acquired prime land plots in the city’s CBD to develop a number of projects, like the city’s first six-star hotel known as Time Square and Union Square commercial centre in June 2013.

The group continued its acquisitions of a prime land plot in the Le Loi-Nam Ky Khoi Nghia-Le Thanh Ton-Nguyen Trung Truc streets in order to develop SJC Tower. Nevertheless, there has been no major progress in development, so the site is currently used for parking.

Van Thinh Phat is active in the M&A space with large land reserves, but keeps a fairly low profile with very little information about its operations.

According to VIR’s research, Van Thinh Phat is owned by businesswoman Truong My Lan and her husband Hong Kong businessman Eric Chu Nap Kee. The group has a slew of companies with complex cross-ownership.

Founded by Truong My Lan in 1992 and originally specialising in trading and hospitality services, the company has diversified its business into property development. In its organisation structure, the group has two legal entities named Van Thinh Phat.

Van Thinh Phat Limited Company or VTP Group Holding, with the charter capital of VND6 trillion ($264 million), is considered as the mainstay of the group. Truong My Lan holds 80 per cent of the company’s stakes, equivalent to a contributed capital of VND4.8 trillion ($211.2 million).

Meanwhile, Truong Hue Van, who is married to famous singer Thanh Bui, and her father Truong Chi Trung holds 8.33 per cent in VTP Group Holdings, equivalent to VND500 billion ($22 million). Truong Chi Trung is Truong My Lan’s brother.

Despite large land reserves, Van Thinh Phat mainly operates restaurants, hotels, office buildings, and apartments, all of which have earned a reputation for premium quality. Two prominent and well-known properties are Windsor Plaza Hotel and Sherwood Residence Serviced Apartments.

In addition, the company has launched many real estate projects focusing on residential areas and hospitality resorts in Ho Chi Minh City and its neighbouring provinces.

Panasonic introduces "video door-phone" system for the hearing impaired

Panasonic introduced an outstanding solution for the deaf and hearing-impaired, a “video door-phone” system, at the “Architecture for the Deaf and Hearing-Impaired - Inclusive Architecture and Technical Solutions for the Deaf and Hearing-Impaired” seminar, organized by the Vietnam Sustainability Social Enterprise (VSSE) at Panasonic Risupia Vietnam, 90 Tran Thai Tong Street, Hanoi, on September 16.

The “video door-phone” system integrates a security camera and a doorbell with an indoor monitoring system, helping family members and the deaf easily identify, communicate, and open doors automatically to guests. It also mitigates potential security risks and protects the house 24/7.

“Panasonic is not only known as a leading Japanese manufacture of consumer electronics, but also as a pioneer in providing B2B total solutions such as security systems, door phones, commercial air conditioners, cold chains, lights and switches, etc. to develop residential areas, urban areas, commercial complexes, and communities, and ensure a modern, comfortable, and safe lifestyle for everybody,” Mr. Masaaki Kobayashi, General Director of Panasonic Vietnam said. “We expect to introduce Panasonic’s B2B solutions more widely in Vietnam.”

In parallel with manufacturing and business activities, Panasonic always focuses on corporate social responsibility (CSR) activities around the world. It was the main sponsor of the seminar, which provided an opportunity for policy makers, organizations, and individuals in the field of architecture and construction to better understand the need for differing access in the deaf and hearing-impaired community and to foster access to architecture and construction to support their lives.

Panasonic also supported the project by providing content, images, and the technical specifications of the solution, for sharing on the platforms of the Hoanhapxahoi project, opening up a new approach for the community.

The “Panasonic One-Stop-Solution” model has been displayed at Panasonic Risupia Vietnam since August and has attracted much attention from businesses, developers, architects, builders, organizations, and individuals.

In Vietnam, apart from establishing Panasonic Risupia Vietnam, which is free to enter and welcomes hundreds of thousands of visitors each year, Panasonic has also developed the Panasonic scholarship program, to fulfil the dreams of Vietnamese students, the 100,000 solar lantern project, to support remote communities, the annual “For a Green Vietnam” tree planting program, and the Kids Witness News program, among others.

The Panasonic Corporation is a worldwide leader in the development of diverse electronics technologies and solutions for customers in the consumer electronics, housing, automotive, enterprise solutions, and device industries. Since its founding in 1918, the company has expanded globally and now operates 474 subsidiaries and 94 associated companies worldwide.

Panasonic Vietnam (PV) is the first 100 per cent foreign-invested company to assume the role of country headquarters in Vietnam. Member companies include Panasonic Industrial Devices Vietnam (PIDVN), Panasonic System Networks Vietnam (PSNV), Panasonic Appliances Vietnam (PAPVN), Panasonic AVC Networks Vietnam (PAVCV), Panasonic Eco Solutions Vietnam (PESVN), and the Panasonic Research & Development Center Vietnam (PRDCV). The Group currently employs about 8,000 people.

In Vietnam, Panasonic is one among those enterprises that place great emphasis on social activities surrounding education and the environment.     

MARD: VRG to complete equitization this year

The Vietnam Rubber Group (VRG), Vietnam’s largest rubber company, has been valued at VND4 trillion ($177.8 million), excluding its massive land fund, marking another step towards its equitization by the end of this year.

A decision signed by the Ministry of Agriculture and Rural Development (MARD) last week saw VRG submit its equitization plan to the government. Its initial public offering (IPO), which was scheduled for July, was delayed due to the government’s request that the company be audited by State Audit of Vietnam (SAV).  

“The delay was to ensure that State capital in the company was protected,” Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said, adding that the 420,000 ha of land VRG has in Vietnam, Laos, and Cambodia could be a huge advantage and highly profitable in the future.

“It will take months to collect feedback from other ministries and sectors on the equitization plan, but the company will complete its equitization by the end of this year and change to a joint stock company in 2018,” the Deputy Minister confirmed.

Mr. Tran Ngoc Thuan, CEO of VRG, said that although there are many interested investors, the company’s value is so high that it is difficult to find strategic investors. “We have set the criteria for selecting strategic shareholders, with the most important criterion being financial capacity,” he explained. “However, due to the huge capitalization, finding a strategic shareholder in just one or two years proved impossible.”

While agricultural stocks are usually not attractive to investors, VRG’s business results and prospects are quite convincing, with the company’s IPO representing good deal for many investors. In the first six months of this year, it posted VND8.1 trillion ($356.4 million) in revenue and VND1.5 trillion ($66 million) in after-tax profit, up 46 per cent and 169 per cent year-on-year, respectively.

According to its initial plan, it will offer 25 per cent during the IPO and expects a return of VND10 trillion ($440 million), while also setting aside 3 per cent in preferred shares for employees.

Last year, VRG successfully sold stakes in two of its subsidiaries and divested from 24 non-trading units, collecting more than VND2.9 trillion ($127.6 million) in return. It has targeted earning VND4.2 trillion ($184.8 million) in pre-tax profits this year, a year-on-year increase of 47 per cent, despite industry forecasts of challenges due to the unpredictable impacts of climate change.

Using national geographical indication licensed

The government has issued Resolution No. 91 / NQ-CP on licensing the use of geographical indications for Vietnamese products and services abroad.

Accordingly, the Government has assigned the Ministry of Science and Technology to license the use of the words ‘Viet’ or ‘Vietnam’ for the certification and collective trademark registration of Vietnamese products and services abroad.

Firstly, the ministry should license the Ministry of Agriculture and Rural Development to conduct a collective trademark registration of Vietnamese rice products abroad.

In addition, the Government has tasked the Ministry of Science and Technology to adjust and supplement the regulations on the use of the national name, and other marks for registering the geographical indication and trademarks of products and services, in the relevant legal documents prior to submitting them to the competent authority.

Int’l medical exhibition to open in HCMC

The 12th Vietnam International Exhibition named Pharmed & Healthcare Vietnam – PHARMEDI will open in Saigon Exhibition and Convention Center in Ho Chi Minh City’s District 7 from September 20-23. 

The Ministry of Health, ADPEX, the National center for Health Communication and Education, Vietnam Pharmaceutical Companies Association and Vietnam Medical Import Export JSC (VIMEDIMEX VN) have jointly organized a press brief on the exhibition.

The event has five main themes with 600 booths of 400 companies from 25 nations and territories.

The exhibition will display products, equipment, supplies for medical, pharmaceutical, medical waste treatment system, beauty care.

This year, visitors will be provided free consultation on diseases and heart problems, diabetes by medical workers from district 2, Medicine University Hospital for the first time,

Prices of steel products to rise     

Prices of steel products are forecast to continue rising in the latter months of the year due to a hike in the prices of steel ingot and steel scrap.

This was stated by the Vietnam Steel Association (VSA).

Nguyen Van Sua, deputy chairman of the association, said because prices of input materials have been increasing strongly, steel producers have to raise the selling price of the products to offset production costs.

In August alone, steelmakers in the northern region had to increase prices five times, with a combined increase of VND1.1 million (US$48.8) per tonne from VND10.77 million per tonne.

In the same month, steel producers in the southern region hiked prices three times. Prices of steel products in the region currently range from VND12.4 million per tonne to VND12.7 million per tonne.

According to VSA, steel scrap is being imported at $350-354 per tonne, $40 higher than the price one month ago. Domestic steel scrap is being sold at VND6.8-7.2 million per tonne, compared with VND6.35-6.55 million in August.

The price of imported steel ingot in early September was quoted at $540-545 per tonne, 13 per cent higher than early August. Price of domestic steel ingot went up from VND10.5 million per tonne to VND12.1 million.

VSA deputy chairman Sua predicted, “Steel ingot price will likely surge to VND12.7 million per tonne, thus the price of steel products would continue moving up this month.”

Last month, the local steel industry produced 13 million tonnes, an increase of 17.4 per cent compared with the same period last year. Of the total, 11 tonnes were sold in the local market, 14.9 per cent higher than August 2016.

Viet Nam also exported 2.98 million tonnes of steel products from January to July, earning revenue of $2 billion, a rise of 27 per cent in volume and 50 per cent in value against the corresponding period. 

HCM City farm, consumer goods fair promotes local produce     

A farm produce, food and consumer goods fair which opened at the Tan Binh District Culture and Sport Centre in HCM City on September 12 seeks to promote production and consumption of Vietnamese products.

The six-day fair has 200 booths displaying a wide range of agricultural products, foods, fashion items, jewellery, handicrafts, wooden products, household utensils and other consumer goods.

Visitors can enjoy music shows every night and try a range of cuisines.

It is organised by the district People’s Committee together with the Dong Nam Advertising and Commercial Promotion Joint Stock Company.

At the opening ceremony, the organisers gave gifts to 50 disadvantaged children from the district. 

SBV issues new regulations     

The latest instructions from Le Minh Hung, Governor of the State Bank of Viet Nam (SBV), require credit institutions and commercial banks in Viet Nam to strictly comply with the SBV’s regulations on mobilising capital in foreign currencies and not offer interest rates exceeding the ceiling levels.

The SBV’s intention is to ensure a balance between mobilised capital and lending capital, which is a way to minimise systematic risks in providing foreign currency credit.

Issued on Wednesday, an official document numbered 7295/NHNN-TTGSNH from the SBV demands credit institutions keep a close watch on foreign currency credit growth rates, while monitoring the ratio between credit and capital mobilisation in foreign currencies so that an equilibrium is maintained.

In particular, the SBV requested their local offices and other inspection authorities to monitor commercial banks’ other practices to ensure that official regulations on foreign currency interest rates are respected and implemented.

Document 7295 stated that any infringement of the SBV’s regulations would lead to a number of penalties, depending on the level of violation. These range from denial of granting permits for opening new banking branches, representative offices or ATMs, to prohibition of issuing new services.

Competition among credit institutions by offering foreign currency interest rates exceeding the regulated ceiling levels would also result in penalisation from the SBV.

The SBV also asked credit institutions to take the initiative in monitoring and exposing interest rate violations in foreign currency lending, mobilising and liquidating activities within their branch offices, and to implement the appropriate disciplinary actions.

On the other hand, the Governor requested that banks and other credit institutions conduct promotional programmes to encourage borrowing, while tending to customer services, especially businesses, to ensure productivity.

Previously, the SBV had issued Circular 06/2014/TT-NHNN and Decision 2589/QD-NHNN, requiring credit institutions to apply regulated interest rates, avoid using technical methods to bypass the SBV’s control, or participating in illicit competition by raising interest rates above the SBV’s designated maximum rates.

At the moment, the SBV’s regulated maximum deposit interest rate for US dollar is zero per cent for both individuals and organisations.

According to reports from the National Financial Supervisory Commission (NFSC), by the end of August 2017, total credit growth rate in the banking sector has reached 11.5 from the start of the year, as compared to 10.2 per cent in the same period of 2016. 

Credit growth rate for lending in foreign currencies in the first eight months of 2017 is now 11.5 per cent, a staggering increase of 6.7 times from the same period last year at 1.7 per cent, while credit growth rate for loans in Vietnamese dong is 11 per cent.

Nonetheless, foreign currency credit only accounts for 8.5 of total national outstanding debt. 

Khanh Hoa Sanest Beverage earns $10m from IPO     

Khanh Hoa Sanest Beverage Company earned VND222.7 billion (US$9.8 million) from the sale of nearly eight million shares at its initial public offering (IPO), the HCM City Stock Exchange said.

The starting price for the IPO was VND23,000 per share.

The auction on Monday attracted eight organisations and 285 individuals, who registered to purchase 20,677,820 shares.

The highest bid price was VND80,000 per share, the lowest price was VND25,300 per share and the average was VND27,937 per share, 21.5 per cent higher than the starting price.

Two organisations and 132 individuals won the bids.

Khanh Hoa Sanest Beverage specialises in the production of processed milk and dairy products, non-alcoholic beverages and mineral water, along with selling retail and wholesale beverages and food products.

The company is among five subsidiaries of the Khanh Hoa Salangane Nests Company, with initial charter capital of VND220 billion on the launch day of January 28, 2016.

Last year, the company posted revenue of VND535 billion, accounting for 62 per cent of Khanh Hoa Salangane Nests Company’s total revenue.

Besides exporting products to the United States, mainland China, Taiwan and Hong Kong, Khanh Hoa Salangane Nests Company has also set up branches in other ASEAN countries. 

Better management of BOT, BT projects needed: inspectorate

The Government Inspectorate has found irregularities in the management of BOT (Build-Operate-Transfer) and BT (Build-Transfer) projects in HCM City, including the use of inappropriate contractors.

The Inspectorate’s report, which examined the implementation of BT and BOT projects in HCM City, found that the city was mobilising resources properly to invest in infrastructure, but had several shortcomings in investment preparation, including the publication of lists of projects, selection of investors, and preparation and approval of reports on project feasibility.

In addition, shortcomings were found during the investment execution process, which included contract signing, project progress, bidding and selection of contractors, acceptance of payments, and maintenance.  

Based on the findings, the Inspectorate recommended that Prime Minister Nguyễn Xuân Phúc instruct the ministries of transport, construction, finance, and planning and investment as well as the city People’s Committee to take action to remedy the situation.

The Inspectorate asked the ministries of planning and investment, finance and transport to work with the Government on issuing appropriate documents or regulations on paying back the capital of BOT and BT projects.

The ministries were also requested to develop a policy for maintenance and repair expenses to ensure economic efficiency and to improve management, inspection and supervision of projects.

The HCM City People’s Council was told to approve investment policies for BOT projects before issuing investment registration certificates so that returns on investment could be ensured.

The city People’s Committee was urged to direct the Department of Construction to compile statistics on projects funded with State capital in the city.

Speaking at a recent meeting in HCM City, Võ Văn Hoan, head of the People’s Committee Office, said the city had faced numerous challenges in developing infrastructure projects since the early 2000s, especially a shortage of funds.

He said that many road infrastructure projects in the city required huge amounts of capital but the city’s budget was overstretched, while budget allocations by the central Government were insignificant.

To deal with the capital shortage, the city has sought stronger private sector engagement by developing infrastructure projects under the BOT or BT investment models.

From 2010 to 2015, HCM City signed contracts with eight investors to develop 13 road and environmental protection projects under the BOT or BT model with total investment of nearly VNĐ33 trillion (US$1.45 billion).

Five of them have been completed, while the remaining eight projects are still under construction.

The Government Inspectorate said that many of the projects now underway are moving at an extremely slow pace, leading to losses and cost overruns.

PM welcomes theme of 24th SMEs ministerial meeting

Prime Minister Nguyen Xuan Phuc highlighted the theme of the 24th APEC Small and Medium Enterprises Ministerial Meeting (SMEMM), saying it demonstrates the aspiration of Vietnam to cooperate with other APEC member economies to foster SMEs’ innovation and global access in the digital era.

Over the past 30 years of reform, Vietnam, from a poor country, became a developing and middle-income country in 2010, he said the opening session of the SMEMM held in Ho Chi Minh City on September 15. 

The country’s development path is a vivid demonstration for the role and the significance of SMEs, he added.

He described the SME community as a main momentum for employment generation and contribution to the maintenance of socio-economic growth and stability.

In the context of the fourth industrial revolution, the National Assembly of Vietnam has promulgated the Law on Support for Small-and Medium-sized Enterprises while the Government has issued a number of important policies to build a healthy and inclusive business environment, he said.

Vietnam hopes to receive cooperation from other APEC member economies to enhance the capacity of the tax system to encourage business production, fair competition, and prevent transfer pricing and tax evasion of some foreign investors, he added.

The PM recommended building a support fund for SMEs and encouraging them to strengthen connectivity with multinational groups and engage in the global value chains.

He suggested implementing more synchronous measures to increase SMEs' competitiveness and creativity such as facilitating business access to markets and deeper engagement in global value chains; enabling MSMEs to get access to new technologies, improve management capacity and increase competitive edge; promoting entrepreneurship and business ethics; and developing a sustainable and environmentally friendly startup ecosystem to promote innovation among SMEs in the region and value the role of female leadership.

The PM called on countries in the Asian-Pacific region to foster trust and determination to maintain a peaceful environment and ensure safety and security for the free transfer of goods, services and investment inflows.

The 24th Small and Medium Enterprises Meeting (SMEMM 24) is one of the most important ministerial events within the APEC cooperation framework, which is expected to adopt a joint statement on promoting start-up bussinesses and a strategy to develop green, sustainable and innovative SMEs, he said.

Established in 1989, APEC comprises 21 economies, including Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the US and Vietnam.

Quảng Ngãi calls for new investors in revoked projects

The central province of Quảng Ngãi has called for new investors in six projects that had their investment licences revoked due to delays from 2010 to 2015.

Head of Dung Quất Economic Zone’s management board, Nguyễn Minh Tài, said the six projects had registered to invest in the zone, but all only either not started work or only done a little.

Tài said the province has offered favourable conditions to draw new investors to revive the projects.

He said two new investors – the Hòa Phát-Dung Quất Steel company and Messeeser industrial gas company – had agreed to cover an industrial ship-building complex.

The other five projects include a seaman’s club, workers’ apartment, a villa in Vạn Tường Urban Area and an apartment east of the Trà Bồng River, and a hotel-restaurant and service complex.

These projects have been deserted for years, wasting natural resources and investment opportunities.

The 45,000ha Dung Quất Economic Zone is one of five key coastal economic zones in Việt Nam that has been prioritised for infrastructure development.

Nineteen industrial parks are available to investors with infrastructure ready, according to the management board.

According to latest reports, the province has attracted 36 foreign direct investment projects, worth $4 billion.

MEDIPLAST officially merges with VINAMED

Aiming to take advantage of each enterprise’s existing strengths to expand their scale of operations, medical equipment manufacturers MEDIPLAST and Vietnam Medical Equipment Corporation (VINAMED) have officially merged.

Accordingly, MEDIPLAST has handed over its entire assets, including cash, real estate projects, factories, and machinery, among others, to VINAMED.

In return, VINAMED issued individual shares to swap for MEDIPLAST’s existing shareholders at a ratio of 3:1. The shareholders of MEDIPLAST have become VINAMED’s shareholders, enjoying the same rights and benefit as VINAMED’s original shareholders.

The merger will help MEDIPLAST increase its capital to expand its operations. In recent years, MEDIPLAST has been having difficulties in diversifying its products due to a lack of capital, management capacity, and relationships with foreign partners, while VINAMED seems a perfect complementary partner.

The merger is an important step in building VINAMED as a corporation specialising in the healthcare sector with five key businesses, namely medical equipment production and distribution, as well as medical technology and consultancy, communications system (PACS) solutions, and healthcare facilities. These five businesses will create a closed supply-service chain for VINAMED. After the merger, MEDIPLAST will be in charge of marketing for the entire VINAMED product portfolio.

Formerly the Department of Basic Materials and Construction under the Ministry of Health (MoH), the company was officially renamed VINAMED on May 2, 1996 by MoH Decision No.720/BYT-QD. On July 12, 2016, VINAMED completed its equitisation and was officially transformed into a joint stock company.

For nearly 30 years, VINAMED has been training highly responsible and enthusiastic management staff, pharmacists, and engineers. The company’s trainees are knowledgeable about medical equipment and have experience in business, logistics services, as well as equipment repair and installation.

In May, VINAMED officially received the investment certificate to develop a high-quality medical services centre at Thanh Hoa General Hospital in the framework of Thanh Hoa Investment Promotion Conference 2017, which took place on May 18.

The project has a total investment value of VND739 billion ($32.55 million) contributed by Thanh Hoa General Hospital and VINAMED. The project is a paramount item in the plan of restructuring and developing healthcare services in the province by 2020 with vision to 2030 and is in line with Vietnam's comprehensive planning for the healthcare sector for the same time period.

Considered one of Vietnam's leading medical equipment manufacturers, MEDIPLAST operates mainly in the fields of manufacturing, trading, import and export of medical equipment, materials, and medical instruments, and related products with the most modern production lines of the UK and Japan.

In late July, it inaugurated MEDIPLAST medical plastic factory (phase 1) at the northern province of Bac Ninh's Dai Dong Industrial Zone.

Construction formally starting in November 2016, the factory was completed and came into operation in June 2017. At present, it focuses on the production of sterile plastic syringes and feeding syringes, K1 auto disable syringes, INSULIN syringes, scalp vein set needles, and infusion sets.

With an area of 13,000 square metres and staff of more than 200, the new factory in Bac Ninh will help MEDIPLAST increase production capacity and develop new products to meet the demand for high-quality plastic medical equipment in the country and become the supplier of global organisations, such as the United Nations Children's Fund (UNICEF), the World Health Organization (WHO), the Program for Appropriate Technology in Health (PATH), and the Global Vaccine Alliance Translation (GAVI), among others.

Mobile World in Top 50 leading Asia-Pacific listed companies

The Mobile World Investment JSC has appeared in Asia’s Fab 50 listed companies as voted by Forbes Asia magazine.

Mobile World is the second Vietnamese company to appear on the list during the Fab 50’s 13-year history. The company is capitalized at $1.5 billion and earned revenue of $2 billion in 2016. Established in 2004, its annual revenue growth rate has steadily remained above 60 per cent since its HSX share issuance in 2014.

It currently has 1,609 stores in Vietnam and one in Cambodia, with four brands: Mobile World, Dien may Xanh, Bac hoa Xanh, and the e-commerce site vuivui.com. Forbes also emphasized that Mobile World has ambitious plans to expand in Cambodia and to Laos and Myanmar.

To identify the Top 50 listed companies in the Asia-Pacific region, Forbes Asia’s team of professionals screened 1,964 listed companies earning annual revenue of at least $1.8 billion.

It also set other important criteria, such as corporate value or revenue not lower than five years ago, no high debt ratio, and no more than 50 per cent State ownership, and businesses must also meet dozens of different financial indicators, the aim being to provide a list of Asia’s “bluechip” elite companies.

Mobile World also appeared among the Top 50 best listed companies in Vietnam 2017 from Forbes Vietnam. The announcement ceremony was held on September 14.

In the first seven months of this year, its turnover was VND36.7 trillion ($1.6 billion), up 58 per cent year-on-year and equal to 58 per cent of the annual target. After-tax profit was VND1.26 trillion ($54.7 million), up 29 per cent year-on-year and equal to 57 per cent of the annual target. Turnover at thegioididong.com was VND20.5 trillion ($891 million), a 23 per cent increase year-on-year, and VND15.7 trillion ($682 million) at dienmayxanh.com, 138 per cent higher year-on-year. Online turnover reached VND3 trillion ($130 million), up 95 per cent year-on-year and equal to 45 per cent of the annual target.

The company opened 354 new stores nationwide in the first seven months, including 83 new thegioididong.com stores and 181 new dienmayxanh.com stores. As at July 31 it had 1,609 stores, including 1,034 thegioididong.com stores, 437 dienmayxanh.com stores, and 138 Bach hoa Xanh stores.

Ministry stipulates solar power purchase price

The Ministry of Industry and Trade has issued a circular, stipulating solar power purchase price at VND2,086 per kWh (9.35 US cents).

The price will be adjusted according to fluctuations in VND/USD exchange rate.

According to the ministry, the circular’s issue is to make transparent solar power development procedures in Vietnam, boost investment in this field, increase power system capacity and gradually raise the ratio of renewable energy in the national electricity system.

It also aims at less dependence on depleting fossil fuel, energy security, greenhouse gas emission reduction, environment protection and sustainable development.

HCMC launches social condo design competition

The Department of Construction and the Architects Association in HCMC today announced the launch of social condo design competition. 

The competition comprises of ten awards totally worth VND880 million ($38,719).

Director of the Department Tran Trong Tuan said that the competition aims to boost investment in social apartments in the city and improve design quality of these special condos.

It expected to draw attention of professional architects and organizations to select the best designs which meet all requirements of planning, architecture, economic efficiency and offer a fresh environment for residents.

Accordingly, the best works will be introduced to investors and consulting agencies in the city and nationwide.

Participants are organizations and individuals in Vietnam and those who are professional at designing apartment.

One special prize is worth VND200 million, one first prize is VND150 million, two second prizes each worth VND100 million, three third prizes each worth VND80 million and three consolation prizes each worth VND30 million.

Entries can be sent to the Department of Construction at 60 Truong Dinh Street in District 3 from now to November 3.

The prize-giving ceremony will be held in January 10, 2018.

HCM City delegation to open trade promotion in Australia and New Zealand

The Investment & Trade Promotion Centre of Ho Chi Minh City (ITPC) in collaboration with the Ho Chi Minh City Tourism Department will jointly organize a delegation "the HCMC trade and tourism investment promotion" to Australia and New Zealand, led by the city leaders. 

As scheduled, the working delegation in the two countries will start on October 23- 31, 2017 with attractive activities as conference on trade, tourism and investment promotion, investigation programs to connect trading between Vietnamese enterprises and potential enterprises of Australia and New Zealand.

Under its target of investment attraction into the city’s key projects, strengthening export and activities on trade, investment and tourism promotion into Australia and New Zealand, the program will give priorities for enterprises having projects in accordance with the policies of Ho Chi Minh City.

SBV Governor requires close control over credit in foreign currencies

The Governor of the State Bank of Vietnam (SBV) has sent Document 7295 requiring credit institutions and foreign banks’ branches to keep a close eye on credit growth rate in foreign currencies to ensure their operation safety.

They have been asked to control credit by mobilized capital in foreign currency to ensure suitable ratio and the balance between deposit and loan funds, intensify risk control in credit granting in foreign currencies.

Credit institutions should abide by reward interest rates stipulated at Circular 06 issued in 2014 and Decision 2589 in 2015 of the Governor, not apply technical measures to increase ceiling rates. They are banned from unhealthy competition in capital mobilization.

The Governor requires them to examine and spot violations in reward ceiling rates and strictly handle leaders of branches for letting violations occur and not abiding by regulations by SBV.

Businesses must spend over $629 million on specialized inspections

Businesses must take about 28.6 million working days and VND14,300 billion (US$629.21 million) to implement specialized inspection procedures, according to a Government working group.

The working group has been established to inspect how ministries have conducted specialized inspections on export import goods.

According to the group, 13 ministries have completed only 64 out of 98 assigned tasks so far. It has spotted a slew of limitations and problems in inspection operations of the ministries such as the high ratio of overlapped and conflict regulations.

One commodity is managed by many documents and must undergo specialized inspection procedures by many ministries. The ratio of one commodity undergoing 2-3 specialized inspection procedures approximates 58 percent now.

Inspection and management methods have not accorded with international standards, lengthening cargo customs clearance time. Nearly 100,000 items must experience specialized inspections right at border gates during customs clearance with the ratio of spotted violation being less than 0.1 percent.

That has raised difficulties, inconveniences and costs for businesses. Annually they must pay VND14,300 (US$629.21 million) to implement regulations and procedures on specialized inspections.

HCMC should allow small apartments

The HCMC government should allow for construction of commercial apartments smaller than 45 square meters as long as the number of such homes does not exceed 25-30% of the total, said real estate experts.

Le Hoang Chau, chairman of the HCMC Real Estate Association (HoREA), said the minimum floor area of commercial and social apartments of 45 square meters as stipulated in the 2005 Housing Law is unreasonable.

The regulation is also specified in the National Standards TCVN 4451:2012 on basic principles in house designs issued by the Ministry of Construction.

Chau said the restriction on the size of apartments makes it difficult for low-income people to own homes.

The standard should not be applied in all localities due to the differences in housing demand. Especially, in Hanoi, HCMC and seven other big cities, available land for commercial and social housing projects should be used economically and effectively.

The 2014 Housing Law which replaces the 2005 law allows investors to decide the area of the  commercial house as long as it is suitable to the housing standards set by competent agencies.

However, the Ministry of Construction has not issued new national standards for apartments in line with the new law to replace the old ones.

Nguyen Van Duc, deputy director of Dat Lanh Real Estate Co Ltd, said the ministry had earlier given the nod to the company to build commercial apartments measuring 30-40 square meters. These apartments were sold out rapidly after completion, showing the demand was huge.

At present, there is high demand for small apartments that are affordable for low-income people. The city cannot ban these apartments just because they may give rise to slums in the sky, Duc added.

Chau from the HoREA also agreed that the need for small social and commercial houses of State employees, students, workers and unmarried people is huge.

According to the 2014 Housing Law, the Government, the Ministry of Construction, and central cities and provinces can decide housing standards suitable to specific demand and conditions of localities.

Therefore, HCMC should accept commercial apartments with a minimum floor area of 25 square meters, he said.

Petrolimex asks distributors to be ready for selling E5 bio-fuel

Vietnam National Petroleum Group (Petrolimex) will completely replace A92 petrol by E5 A92 bio-fuel from January 1 next year, and has just ordered all its distributors to prepare facilities for the change, Vietnamplus reports.

Petrolimex asked its distributors to implement the project seriously by readying all mixing, transport and storage facilities to ensure the quality and safety of E5 A92.

The group also encouraged fuel traders to make the move to sell the bio-fuel earlier if preparations are already completed. A92 will be wiped out, so gas stations can sell only A95 and E5 A92, or each of them.

Deputy Minister of Industry and Trade Hoang Quoc Vuong said the ministry has worked with localities, fuel traders and bio-fuel producers to inform consumers of the imminent change, and prepare technical infrastructure and issue preferential policies to encourage the consumption of the bio-fuel.

Vietnam is now home to four bio-fuel plants including two of Tung Lam Production and Trading Co Ltd in Dong Nai and Quang Nam provinces with a total annual capacity of 200,000 cubic meters of ethanol. The other two in Quang Ngai Province’s Dung Quat and Binh Phuoc Province are expected to annually supply 200,000 cubic meters of ethanol for the market.

To implement the project, the country will need 5.4 million cubic meters of E5 fuel and 250,000-270,000 tons of E100 as raw material for bio-fuel blending.

Though local plants can meet the demand for ethanol, the Ministry of Industry and Trade has also allowed traders to import E100 to ensure the competitiveness in the market and protect consumer rights, Deputy Minister Vuong said.

Metro Line No. 2 project in HCMC stays put until 2020

The HCMC government has asked the Prime Minister for permission to delay the Metro Line No. 2 project until 2020, which is an administrative step for the city to discuss an extension of loan agreements with international donors.

In a document sent to the Prime Minister on September 7, the city pledged to shoulder all extra expenses for loan extension agreements for the metro line, which will run from Ben Thanh Market in District 1 to Tham Luong Depot in District 12.

According to the document, the city has also secured capital for the project’s site clearance compensation.

The delay is apparently due to time-consuming preparatory paperwork whose progress has fallen far behind schedule due to multiple adjustments to the project.

A source from the HCMC Management Authority for Urban Railways (MAUR) said the parties concerned are adjusting the project’s technical design and investment cost.

The HCMC government in February sent a scheme on project adjustments to related ministries and received feedback in June. The city has plans to submit the latest adjustment scheme to the Government for approval this month.

The city has also adjusted the project’s total cost to US$2.173 billion from the initial US$1.3 billion, while the groundbreaking date has not been finalized.

The districts which the metro line will pass through have been asked to finish site clearance before June 2018.

On September 8, Le Van Khoa, director of Metro Line No. 2 project, said the construction process has to be adjusted due to slow site clearance and complicated procedures.

Metro Line No. 2 has a total length of 11 kilometers and an original investment cost of US$1.3 billion, including loans worth US$540 million from the Asian Development Bank (ADB), US$313 million from the German Development Bank (KfW), US$195 million from European Investment Bank (EIB) and US$326.5 million from the city’s budget.

According to the initial plan, the project would get off the ground in 2016 and be up and running in 2020.

EZ Land enters Vietnam’s real estate market

 EZ Land Company of Luxembourg’s international investment fund KEY SICAV SIF on Monday announced its participation in Vietnam’s real estate market with a plan to invest US$200 million in housing projects in the country.

EZ Land plans to build 1,000-1,500 apartments a year in the next five to eight years and focus on homes for low-income people, a segment forecast to keep growing in the coming time.

Oliver Brazier, CEO of EZ Land Vietnam, said his company will ensure the construction pace of projects and supply customers with high-quality apartments at reasonable prices.

Its first project named HausNeo in District 9 including 568 units requires VND500 billion (US$21.94 million). EZ Land’s apartments will be designed in the Bauhaus style of Germany, focusing on both the beauty and utility of apartments.

EZ Land Vietnam will acquire other enterprises’ projects whose construction has not been commenced and will not use the available designs of previous investors, said Oliver Brazier.

In fact, EZ Land has been present in the domestic housing market for two years but its presence in Vietnam and its first project were only revealed several days ago. The company wants to prepare well for the implementation of its projects, such as completing administrative procedures and choosing ideal locations, to meet the demand of local people.

Triumph Motorcycles eyes investment in Vinh Phuc

A delegation from Triumph Motorcycles has visited the northern province of Vinh Phuc to explore investment opportunities.

The company plans to build a factory manufacturing high-end motorbikes in the locality, according to the provincial People’s Committee.

During a working session with local authorities, Jamie Looker, Triumph Motorcycles Chief Operating Officer, said the company, established in 1884, currently has factories around the world with the growing market share.

The company plans to launch a showroom in Ho Chi Minh City by the end of this year, he added.

Le Duy Thanh, Vice Chairman of the provincial People’s Committee pledged that the province will create favourable conditions for the UK firm to build the factory.

He briefed the guests on local potential and advantages in economic development, investment attraction and industrial development, particularly in the automobile and motorbike industry, which has made a significant contribution to the province’s budget.

The province is home to several major automobile and motorbike firms’ factories, including Honda, Toyota, and Piaggio, and other spare part factories.

Vietjet starts selling tickets on HCM City-Phnom Penh route

Vietjet starts selling tickets priced from only 199,000 VND (excluding taxes and fees) on the route connecting Ho Chi Minh City and Cambodia’s capital Phnom Penh. 

The route will be put into operations as from November 24, 2017, looking to meet the trading and travelling demands between two famous economic, financial hubs of Vietnam and Cambodia. 

The Ho Chi Minh City – Phnom Penh route will be operated daily roundtrip with the flight time of 45 minutes per leg. 

The flight departs from Ho Chi Minh City at 17:35 (the local time) and arrives in Phnom Penh at 18:20 (the local time). The return flight takes off in Phnom Penh at 19:30 (the local time) and arrives in Ho Chi Minh City at 20:15.

The tickets are available for booking within the golden hours from 12:00 to 14:00 (local time) daily at www.vietjetair.com (also compatible with smartphones at https://m.vietjetair.com) or at www.facebook.com/vietjetvietnam or via call centre at 19001886 and ticketing offices nationwide and internationally.

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