First wind power plant in Soc Trang launched     

The Super Wind Energy Cong Ly Soc Trang Joint Stock Company began building the first wind farm in the Mekong Delta province of Soc Trang on Tuesday.

The project is located in Lai Hoa Ward, Vinh Chau Town, and its land use requirement is 2,489ha.

The project has a total capacity of 98 megawatts (MW) and is invested in three phases, including the first phase with a capacity of 30MW, the second phase with a capacity of 30MW and the third one with a capacity of 38MW.

The total investment capital for three phases is more than VND5.39 trillion (US$237 million).

Of this, the first phase has a size of 15 wind turbine masts, covering 370ha. The total investment of the phase, which will be implemented within 36 months, is over VND1.68 trillion.

To Hoai Dan, chairman cum general director of Super Wind Energy Cong Ly Soc Trang, said this is a pioneer and large-scale project in the field of using clean energy to produce electricity.

The project has great, long-lasting and sustainable benefits, not only contributing to the self-balancing of power sources in the Mekong Delta, but more importantly, contributing to the economic restructuring of the region and boosting tourism development. In addition, the wind plant will help stimulate investment in other industrial projects in the region, protect the living environment, reduce the impact of climate change, create jobs and increase revenue for local budgets, Dan added. 

SeABank offers preferential loans to firms

The Southeast Asia Joint Stock Commercial Bank (SeABank) will provide preferential loans to enterprises worth VNĐ1.5 trillion (US$65.9 million) until March 31.

Accordingly, SeABank will apply lending rates from 7.5 per cent a year in three months and from 8 per cent a year in six months for short-term loans in Vietnamese đồng.

The bank will also give out short-term loans in US dollar with an annual interest rate of 3 per cent in six months.

The programme aims to provide enterprises with short-term loans to supplement working capital for production and business activities.

Based on the financial needs of customers, SeABank will appraise loans, apply preferential interest rates and advise businesses to improve their capital use efficiency.

In addition to this programme, SeABank has implemented many other incentives for corporate customers, such as Smart and VIP Account.

SeABank also supports the tuition fee of 20 poor children in 14 provinces and cities across the country by awarding a monthly scholarship of VNĐ1 million to every child until they finish 12th grade.

The students belong to the cities of Hải Phòng, HCM City, Nha Trang and Cần Thơ, and provinces of Bình Dương, Thái Nguyên, An Giang, Hải Dương, Kiên Giang, Vĩnh Phúc, Quảng Ninh, Tiền Giang, Đắk Lắk and Quảng Ngãi.

Through this programme, SeA aims to help the children to continue schooling without worrying about the tuition fee, reducing the burden on their families.

From this year, SeABank has been celebrating its EduDay on January 29 to award scholarships to poor children.

SeABank will continue to seek and support more cases of poor children so that they are able to continue their education and later build a better life for themselves and their families.

Vinamilk’s profit rises 9 per cent

The Việt Nam Dairy Products Joint Stock Company (Vinamilk) posted an after-tax profit of nearly VNĐ10.3 trillion (US$452.5 million) last year, an increase of 9 per cent year-on-year.

The company’s total revenue in 2017 reached over VNĐ51 trillion, also up 9 per cent against 2016.

Vinamilk reported a revenue of VNĐ12.35 trillion in the fourth quarter of 2017, an increase of 4.6 per cent year-on-year. The company earned VNĐ1.73 trillion in after-tax profit, down 5.4 per cent compared with the same period last year.

Also compared with the same period last year, the company’s interest expense in the last quarter of 2017 fell sharply from VNĐ19.5 billion to just over VNĐ5 billion.

However, the cost of sales during this period increased slightly to VNĐ3.2 trillion, bringing the total selling expense of the whole year to VNĐ11.5 trillion. Thus, it is estimated that in 2017, Vinamilk had to spend some VNĐ31 billion per day on selling expenses.

Vinamilk’s corporate management expense in the fourth quarter jumped to VNĐ528 billion, while the figure for the same period last year was VNĐ296 billion.

Interest rates fall in G-bond and inter-bank markets

Interest rates in inter-bank and G-bond markets have declined significantly despite rising capital demands ahead of Tết (Lunar New Year), the country’s biggest holiday season.

Reports of the Maritime Bank’s economic research division showed that interest rates of loans in đồng reduced 0.25-0.50 percentage points in all terms last week to 1.58 per cent for overnight loans, 1.73 per cent for one-week loans, 2.13 per cent for two-week loans and 3.70 per cent for one-month loans.

This is different from the previous years when the interest rates often rose significantly few weeks ahead of Tết, which saw rising demand for capital for shopping and other payments. For example, ahead of Tết last year, inter-bank rates surpassed 2 per cent for overnight and one-week loans.

The past week also saw a growing investment in G-bonds as investors bought all VNĐ3.5 trillion (US$154.18 million), of which VNĐ2 trillion were 10-year G-bonds and VNĐ1.5 trillion were 15-year G-bonds.

Yields of the bonds dropped sharply by 0.52-0.70 percentage points to 4.38 per cent for 10-year G-bonds and 4.5 per cent for 15-year G-bonds.

HCMC continues leading FDI attraction in first month of 2018

Twenty four provinces and cities in Vietnam received new foreign direct investment (FDI) projects in January. Of them, HCMC had the largest registered capital with US$86.2 million, accounting for 19.5 percent of the country’s total.

According to the Ministry of Planning and Investment, HCMC is followed by Nam Dinh province with $80.2 million accounting for 18.1 percent, Ninh Thuan with $60 million, Binh Duong $36.2 million, Long An $35.2 million, Bac Giang $27.3 million and Hanoi $25.7 million.

As of January 20, FDI capital to Vietnam including newly registered and additional capital reached $899.4 million, down 36.8 percent over the same period last year.

Of these, there are 166 newly licensed projects with registered capital reaching US$442.6 million, down 5.1 percent in the number of projects and 64.4 percent in capital.

Asides from that, 61 projects supplemented $442.6 million in registered capital, raising 155 percent compared to the same period last year; 415 capital contributions and share purchases by foreign investors with the total value of $356 million, increasing 54.7 percent.

New FDI projects concentrated in processing and manufacturing sector with the registered capital of $330.6 million, accounting for 74.7 percent of total. Electricity production and distribution, gas, hot water, steam and air conditioners reached $60 million making up 13.5 percent. The remaining industries touched $52 million accounting for 11.8 percent.

In 23 nations and territories worldwide having newly licensed projects in Vietnam in January, Singapore is the largest investor with $147.7 million making up 33.4 percent. the second and third largest ones are South Korea with $70.4 million and Norway with 70.1 million.

At the next positions are the British Virgin Islands, China, Indonesia and Hong Kong (China) with the total funds of $51.4 million, $20.1 million, $20 million and $16.5 million respectively.

Rice, rubber export strongly increases

Since early this year rice export volume and value increased 56.5 percent and 74.2 percent over the same period last year while rubber hiked 94.5 percent and 14 percent, reported the Ministry of Agriculture and Rural Development yesterday.

Agricultural, forestry and seafood export turnover was estimated to reach US$3.09 billion in the first month of 2018, a year on year increase of 25.9 percent over the same period last year.

Of the total, the export value of major farm produce reached $1.68 billion, up 34.1 percent. Seafood hit $560 million increasing 15.6 percent and forestry items touched $745 million surging 18.5 percent.

Vietnam assumes 100 percent of domestic container marine transport

With the fleet of over 1,400 cargo vessels, Vietnam’s shipping industry has assumed 100 percent of domestic container transport by sea and increased its export import transport market share.

According to information at a seminar on improving Vietnam’s shipping capacity organized in Hanoi on January 30, Vietnam’s shipping output reached 130.9 million tons with the growth rate of 6 percent in 2017.

However, the industry now faces challenges in technology, labor productivity, capital access and the ability of meeting transport demand from new markets.

At the seminar, experts said that Vietnam’s maritime industry needs to continue renewing vessel fleet to reduce costs and improve competitiveness.

They forecast that if Vietnam can repair existing problems to promote its position advantages, the country will have the potential of becoming one of maritime powers in Asia by 2020.

640 businesses get high quality Vietnamese goods certificates

High Quality Vietnamese Goods Business Association yesterday announced 640 businesses eligible for high quality Vietnamese goods certification in 2018. Of these, 22 enterprises have won the award for 22 consecutive years.

The results have been drawn from 17,300 survey questionnaires and direct interviews of 13,000 households and consumers at 3,000 selling spots in 12 provinces and cities nationwide.

In addition, the survey this year also got consumers’ opinions online to compare with direct survey results to ensure objectivity and reliability. The list of firms selected for the award has been publicized and transferred to authorized agencies to assess.

Mr. Nguyen Van Phuong, in charge of the annual program’s survey, said that 71-87 percent of respondents made their purchase decisions basing on food safety.

Traditional retail channel still has the advantage over others but consumers have been on the trend of moving to modern shopping channel such as supermarkets and convenient stores. Online trading has developed more clearly among young consumers.

Vietnam is one of countries leading in farm produce and seafood export but processed products have not been well exploited in the domestic market. That is partly because of Vietnamese psychology of favoring import goods, technology and equipment and human resource problems.

Deputy PM sets price management targets for 2018

Deputy Prime Minister Vuong Dinh Hue, head of the Steering Committee for Price Management, has urged relevant bodies to take measures to control prices in 2018 to meet targets set out by the National Assembly, especially fuel prices and toll fees, Tien Phong newspaper reports.

Speaking at a recent meeting of the committee to review price management in 2017 and set tasks for 2018, Hue noted the average CPI in 2017 increased 3.53% year-on-year, or 0.47 percentage point lower than approved by the National Assembly. This year, the law-making body has also set the CPI target at below 4%.

According to the Deputy PM, strong price management last year resulted in low inflation and stable macro economy. The consumer price index (CPI) in December 2017 increased by 2.6% compared to end-2016 and the average CPI in 2017 increased 3.53% year-on-year, while core inflation picked up a slight 1.41% compared to 2016.

As the National Assembly set a CPI growth rate at below 4% this year, ministries and localities should be more active in implementing their assigned tasks and support the operation of the Steering Committee for Price Management in accordance with the Prime Minister’s Decision No.690/QD-TTg.

The Deputy PM asked the Ministry of Finance to improve the efficiency of public expenditures and investment while the State Bank of Vietnam shall maintain flexible monetary policy alongside fiscal policy to keep core inflation at 1.6-1.8% and ensure sustainable credit growth.

The Ministry of Agriculture and Rural Development was asked to work with the Ministry of Industry and Trade to ensure sufficient supply and stable prices of essential products like rice and food, especially during the Lunar New Year (Tet).

Notably, Deputy PM Hue asked the Ministry of Transport to continue negotiating with investors and banks to slash fees at toll stations of build-operate-transfer (BOT) transport projects nationwide, and cooperate with other ministries to reduce logistic costs. Such bodies are also told to control prices of transport services and increase transport capacity to meet high travel and freight transport demand during holidays.

In addition, the Ministries of Industry-Trade and Finance will accelerate a plan to amend the Government’s Decree No.83/2014/ND-CP dated September 3, 2014 on fuel trade to better harness fuel prices to minimize impacts on the economy.

Banks slow in getting listed

Many joint stock banks should have listed on the stock market last year as required by the Ministry of Finance, but the plan faced numerous hiccups, Lao Dong newspaper reported.

In particular, 730 equitized enterprises, including 10 banks, should have traded their shares on the bourse last year.

Under the ministry’s Circular 180/2015/TT-BTC guiding registration for securities trading on the market for unlisted companies (UPCoM), within one year after the effective date of the circular (January 1, 2016), public companies and those delisted before the circular came into force have to complete registration for trading on UPCoM.

However, many banks such as Nam A Bank, SCB, Techcombank, Viet Capital Bank, VietBank and SaigonBank have not made a move.

Though some among these have presented to their shareholders plans for trading shares on UPCoM in recent years, most banks are going slow.

According to the news report, of 35 domestic banks, 16 banks have completed their listings, while 15 banks are still having their shares traded on the over-the-counter (OTC) market (excluding the insolvent CBBank, GPBank, OceanBank purchased by the central bank at VND0 and DongA Bank being under special surveillance), and need to get listed this year or next.

Techcombank and TPBank are likely to go on the Hochiminh stock exchange in the year’s first half, OCB possibly in the year’s second half, and Nam A bank, Maritime Bank, VietABank and SeABank within the year.

With only four banks registering for listing last year, VPBank on HOSE and Kienlongbank, LienVietPostBank and VIB on UPCoM, the target to have ten banks listed at the end of 2016 has failed.

According to experts, going public gives investors more options, facilitates banks’ capital mobilization, improves transparency, and promotes a healthy banking system and integration into international financial markets.

The State Securities Commission has recently slapped a fine on VietBank for its tardiness in submitting the listing application in accordance with Decree 108/2013/ND-CP dated September 23, 2013.

Under Decree 145/2016/ND-CP amending Decree 108/2013/ND-CP, public companies are subject to VND30-50 million fines if their listing applications are over 12 months behind schedule.

In case of 24-36 months late, the fines range from VND50 million to VND70 million. And if listing plans are delayed for more than 36 months, companies may be subject to VND70-100 million fines.

A heavy fine of up to VND400 million may be slapped on those not registering for listing and bourse trading, or getting listed 12 months or more after the deadline.

Easy startup rules abused for fraud

The country’s rules conductive to the establishment of new enterprises have brought positive results but such liberal policy has been abused by some individuals to set up companies for trade fraud.

Nguyen Van Can, head of the General Department of Vietnam Customs, told a teleconference on fighting smuggling and trade fraud in Hanoi on January 29 that the department had detected several cases of abusing policies on startup promotion for smuggling.

He cited a case of three individuals setting up a total of 56 enterprises. They engaged in temporary import for re-export, and committed smuggling and trade fraud therein.

The department has teamed up with police to arrest some individuals involved in the case, he added.

Tran Vinh Tuyen, vice chairman of the HCMC government, told the Daily on the sidelines of the teleconference that the city as a strong hub for foreign trade has also identified some individuals taking advantage of Government policy to form companies for illegal purposes.

Some people have made use of customs transit and legal loopholes to transport smuggled and counterfeit goods, Tuyen said.

He noted the HCMC Customs Department worked with police to deal with a slew of smuggling violations last year. Besides, HCMC is a thriving market, so individuals smuggled in fake goods by air, road or sea.

The 2015 Penal Code which took effect early this year prescribes numerous provisions on smuggling and tax evasion crimes. In addition to heavy fines, competent agencies will impose tough sanctions against these individuals to prevent and reduce smuggling, according to a leader of the National Steering Committee for Combating Smuggling, Trade Fraud and Fake Goods.

A report of the committee shows competent agencies found out more than 225,800 trade violations last year, a year-on-year rise of 1.15%. Fines, sales of confiscated goods, and tax arrears rose by 7.17% year-on-year to around VND23.1 trillion (US$1.01 billion). Notably, over 1,600 cases and 2,100 individuals were prosecuted, up 4.87% and 13.69% respectively.

VNPT the best ICT service provider in Vietnam

The State-owned telecom giant Vietnam Posts and Telecommunications Group (VNPT) has been honoured with two prestigious awards by the British finance magazine IFM.

Accordingly, the IFM has recognised VNPT as the “Best broadband provider of the year” and “Best ICT service provider of the year” in Vietnam in 2017, with the awards ceremony having recently taken place in Singapore.

IFM's awards are based on the assessment of business performance and business strategy by VNPT, utilising indicators related to market expansion, service quality, growth, innovation and contribution to society.

2017 marked a successful year for VNPT, as it was the company’s the 4th consecutive year with profit growth of over 20%. The VNPT brand was ranked No. 3 in the top 10 most valuable brands in Vietnam in 2017 according to the business valuation consultancy Brand Finance. It was also the third consecutive year that VNPT led the FTTH internet cable market with a market share of nearly 50%.

In addition, last year VNPT also achieved positive results in implementing the e-government. The group has become a strategic partner in ICT with 52 out of all of the 63 provinces and cities across the nation. It has also introduced and deployed smart city models in 17 localities.

Furthermore, VNPT has also invested in infrastructure in order to improve its network quality and increase BTS station coverage. In 2017, it deployed 20,000 additional mobile stations for 2G, 3G and 4G, bringing the total number of stations across the network to 75,000 nationwide. In addition, its international Internet bandwidth increased by 83% compared to 2016.

Resolution on improving efficiency of public non-productive units issued

The Government has issued Resolution No. 08/NQ-CP on the Action Program on the implementation of Resolution No. 19-NQ/TW of the 11th Party Central Committee on continuing the renovation of the organizational and management system, and the improvement of quality and efficiency of public non-productive units.

By 2021, the nation strives to reduce at least 10% of the number of public non-productive units (equal to 5,792 ones) and 10% of the civil servants' payroll from the State budget (equal to 205,369 ones) compared to 2015. 

Around 5,792 mechanisms of financial autonomy in non-business units with revenues will be set up, an increase of 10% of direct spending from the State budget for public non-productive units in the 2011-2015 phase. 

By 2021, the country will basically complete to convert economic units into joint-stock companies (except hospitals and schools), the roadmap for calculating public non-productive services (salary, direct costs, management costs and depreciation) for some fundamental areas such as health care, education-training and vocational training. 

By 2025, the nation heads to reduce 10% of the number of public non-productive units (equal to 5,213 ones) and 10% of the civil servants' payroll from the State budget (equal to 184,832 ones) in comparison with 2021. 

Thang Long Investment Group sells entire stake in 30-storey Royal Plaza

Thang Long Investment Group (TIG), the owner of King's Garden Resort and Villas, has divested its entire stake in Thang Long Royal Plaza after many years of suspension.

TIG has found the partner to purchase its stake after the Board of Directors approved the capital divestment last month.

Thang Long Royal Plaza is invested by Hanoi ICT Plaza JSC, the charter capital of which is 61.8 per cent owned by TIG. In the beginning of last month, TIG bought an additional 400,000 shares, raising its ownership to 71.2 per cent.

However, TIG’s Board of Directors has just approved the divestment of 8.9 million shares from the project at the minimum selling price of VND12,000 (approximately $0.52) per share. The total value of the shares is about VND89 billion ($3.9 million). The selling price and the buyer of the project have not been revealed yet.

Thang Long Royal Plaza, which is also known as TIG Tower, is located in Cau Giay new urban area opposite to the National Conference Centre. The project is constructed on an area of 3,871 square metres with different functions, including a trading center, offices, a hotel, and serviced apartments.

Despite announcing owning a number of real estate projects and having a charter capital of VND772 billion ($34 million), TIG’s shares currently trade below VND4,000.The group is also developing King's Garden Resort & Villas in Thanh Thuy district of Phu Tho province.

Apart from Thang Long Royal Plaza, TIG has also announced investing in a number of projects, including TIG Dai Mo Green Garden House, a 21-storey residential block in My Dinh 2 ward, and Vantri Ecoland project.

Recently, the Hanoi Tax Department has announced TIG’s tax arrears of VND1.67 billion ($73,600) through an inspection in 2015 and 2016. It also issued penalties of nearly VND335.5 million ($14,800) due to incorrect tax reporting and VND137.7 million ($6,100) due to late payment.

Vietnam’s exports up 33.1 percent in January

Vietnam’s export turnover in January 2018 reached 19 billion USD, a decrease of 3.3 percent against December 2017 but up 33.1 percent compared with the same period last year. 

Export revenue of the domestic economic sector rose 31.6 percent while that of the foreign direct investment (FDI) sector expanded by 33.7 percent. 

Items posting year-on-year increases in export value included phones and spare parts; garments-textile; electronic products, computers and spare parts; footwear; machines; equipment and tools; wood and timber products; vehicles and spare parts; coffee; and fruit and vegetables. 

However, export revenue of rubber and pepper dropped by 5.7 percent and 17.9 percent, respectively during the month. 

China was Vietnam’s largest export market with a turnover of 4.5 billion USD, a 2.5-fold rise from the corresponding time last year, followed by the US, the EU, the Association of Southeast Asian Nations (ASEAN), Japan and the Republic of Korea. 

Meanwhile, the country imported 19.3 billion USD worth of goods in January, down 3 percent against December 2017 but up 47.4 percent year-on-year. The import value of the domestic economic sector increased by 43.2 percent and the FDI sector jumped 50.4 percent. 

Among the import items, phones and spare parts; electronic products, computers and spare parts; machines, equipment and tools; and oil and gas saw higher import values. 

On the contrary, import revenue of autos, milk and dairy products fell 17.9 percent and 6.2 percent, respectively. 

China remained the largest import market of Vietnam with turnover of 5.7 billion USD, up 45.6 percent year-on-year. It was followed by the Republic of Korea, ASEAN, Japan, the EU and the US. 

The numbers reflect a trade deficit of 300 million USD in January. The General Statistics Office explained that businesses are importing more goods to serve production and consumption during the upcoming Tet holiday. 

According to the Ministry of Industry and Trade, the country’s exports are set to face a range of difficulties in 2018 such as global economic uncertainties, impacts of sudden changes in economic and trade policies of major economies like the US and the EU, impacts of geo-political tensions on the global financial sector and increasing supply resources.

Tightened controls on antibiotic residues for shrimp industry

The shrimp industry earned US$3.8 billion in export revenue in 2017 and is striving to reach a revenue target of US$8-10 billion by 2025 as laid out by the Government.

The realization of this objective will require a concerted effort by government agencies, businesses, and farmers to confront the issue of antibiotic residues and impurities, stresses Minister of Agriculture and Rural Development Nguyen Xuan Cuong.

An increase is projected in the volume of shrimp exports in 2018 amid a drop in prices over 2017 and the emergence of tougher competition from export markets such as India, Thailand, Indonesia, and Ecuador. Turnover in seafood exports is expected to climb by 4% to US$8.5 – 8.6 billion this year.

In 2017, aquaculture exports reached a value of US$8.3 billion, an increase of 18% on the previous year. Accounting for 46%, shrimp exports represent a substantial proportion of the total, rising by 21%to bring turnover to US$3.8 billion. Shrimp is considered a key product in the development of Vietnam’s seafood exports over the next decade, occupying up to 46%-75% of the country’s total aquatic export turnover.

To fulfill the US$8.5 billion export target for this year toward higher value in the following years, the fisheries sector, especially the shrimp industry will require the support and cooperation ofthe Ministry of Agriculture and Rural Development (MARD), the Directorate of Fisheries, and parties concerned to deal with important and urgent issues, especially those relating to antibiotic residues and impurities in shrimp.

“Regulation on antibiotic levels and impurities in shrimp is a thorny issue which needs to be resolved fully and immediately”, Mr Cuong emphasizes. According to Truong Dinh Hoe, General Secretary of Vietnam Association of Seafood Exporters and Producers (VASEP), apart from having the advantage of modern processing technologies, high value-added products, large-scale eco-shrimp farming areas, and huge investments from private businesses, the shrimp industry has faced setbacks concerning residual antibiotics and impurities in shrimp thus negatively impacting shrimp production and exports.

In efforts to curtail antibiotic residues and impurities, the business community has intensified their oversight, leading to higher prices and production costs, and eroding customer confidence.

The shrimp sector’s business community has prioritized tackling the issue of residual antibiotics and impurities in shrimp with a view to expanding shrimp exports to foreign markets in the future.

Last year, the EU outstripped the US to become the world’s leading importer of Vietnamese shrimp with a turnover of US$867 million, up 45% thanks to growing demand and their higher competitive capacity than India, Vietnam’s main rival in the EU market.

The EU market has reduced its shrimp imports from India as 50% of its shrimp shipments are carefully inspected at border areas and it is highly probable that the EU will issue a ban on the import of India’s shrimp products as a result of concerns over residual antibiotics

Meanwhile, Vietnam’s shrimp exports to the Australian market fell by nearly 5% to US$182 million due to the restrictions on imports of raw shrimp products rolled out in January 2017, and on uncooked prawns in June 2017.

Although the ban has been lifted as of July 6, 2017, Australian imports of uncooked shrimp remain modest. While the Australian Government has recently loosened restrictions to allow the import of shrimp products, it has also has imposed stricter regulations and conditions on imported shrimp.

According to VASEP, issues surrounding antibiotics and impurities found in shrimp have dealt a strong blow to income from shrimp exports. In an effort to improve the profile of Vietnam’s shrimp industry in the eyes of international consumers and ensure sustainable development for the industry, VASEP advised the Ministry of Agriculture and Rural Development to consider establishing a program to control residual antibiotics and impurities in shrimp production and farming.