Investments in drugstore chains turn active

FPT Retail has recently confirmed its investment in the Long Chau drugstore chain, thus lengthening the list of tech retailers that are venturing into drugstore business.

The Gioi Di Dong and Digiworld that have long been known as retailers of tech products have invested into drugstore chains as well.

At a meeting on business operations at the Hochiminh Stock Exchange earlier this month, FPT Retail general director Nguyen Bach Diep said the company started injecting capital into Long Chau drugstores early this year on a pilot basis and would expand its investment in this sector next year.

Revenue from drugstore business operations would be included in FPT Retail’s revenue as from 2019, Diep added.

News about FPT Retail’s investment in the Long Chau drugstore chain broke early this year. But when reached by the media, the company said negotiations were ongoing and that there was no official information.

Some of the well-known drugstore chains are Pharmacity, Phano, Phuc An Khang, Vista and My Chau. While Pharmacity and Phano plan hundreds of stores in different parts of the country, Phuc An Khang, Vista and My Chau focus more on the HCMC market.

As earlier revealed by a HCMC-based securities company, The Gioi Di Dong is eyeing shares of the Phuc An Khang drugstore chain. Digiworld has been trading functional foods since last August.

Vietnam’s tech products market is showing signs of saturation, so retailers and distributors are looking for new streams of revenue by diversifying business operations. The Gioi Di Dong, FPT Retail and Nguyen Kim, the owner of Nguyen Kim home appliances stores, have unveiled their plans to expand to new areas such online grocery stores and drugstores.

At the 2017 shareholder meeting, Nguyen Duc Tai, chairman of The Gioi Di Dong, mentioned plans to expand to drugstore business through mergers and acquisitions.

The Gioi Di Dong has already expanded to the electronics and grocery sectors, and got involved in e-commerce with an online grocery site at vuivui.com..

Nguyen Kim last month spent VND68 billion increasing its ownership at Lam Dong Pharmaceutical (Ladophar) from 24% to 51.4%.

Generation Z spends heavily on food services

Generation Z has great demand for food services, and they are an agent of change in food consumption behaviors in major cities in Vietnam, according to a report of Decision Lab.

Generation Z consists of those born between 1995 and 2002 and accounts for 14.4 million of the population in Vietnam. The report surveys 16,000 people in this age group in Hanoi, Danang and HCMC.

The findings show 56.1% of respondents earn no money, or have monthly disposable incomes of less than VND3 million (US$132). Only 35.1% of them earn between VND3 million and VND7.5 million (US$330) a month. Notably, they spend around VND890,000 (US$39) a month eating out.

The study indicates that the eating habits of this generation will have major effects on the creation and development of catering business models in major cities.

Unlike their previous generations who have their meals at home and at fixed hours, the new generation uses food services outside their homes at any time. They get used to fast food, especially those from Western countries.

However, this fast food is unlikely to beat Vietnam’s traditional dishes such as rice noodle soup, as generation Z prefers to eat them at midnight.

They opt for milk tea rather than coffee and alcoholic drinks which are often consumed by older generations. Around 15.6% of respondents drink milk tea in the morning, 12.5% fresh milk, and 12.1% milk coffee. Decision Lab predicts milk tea would still be their preferred beverage in the coming time.

Generation Z use the Internet on their smartphones for entertainment. They will ask their family members to verify information they find online in order to avoid possible tricks or purchase products of poor quality.

Therefore, according to Decision Lab, companies should advertise their products on online platforms in line with their true nature to instill confidence in this generation.

Furthermore, the generation frequently uses social media. They often post photos of delicacies and restaurants whose designs are innovative on their Facebook and Instagram accounts. As such, social media has become an effective advertising channel for companies.

“They also do not hesitate to post complaints on social media if they purchase substandard products, or experience poor customer services. In order to win the hearts of this potential customer group, enterprises should appreciate their feedback to handle (arising issues) in a timely manner, in addition to (improve) the quality of their services,” said Nghiem Vu Huong Linh, senior consultant at Decision Lab.

First P2P lending platform launched

Vay Muon Joint Stock Company, an arm of NextTech Group, on December 5 launched what is Vietnam’s first peer-to-peer (P2P) lending platform for investors.

P2P lending is a new way of debt financing, allowing people to borrow and lend money without having to go through a financial institution. Thanks to technology and big data, this P2P lending platform connects the borrower and the investor faster.

Vay Muon’s P2P lending platform enables people to easily borrow small amounts of money by using a mobile app called Vay Muon – Vay tien online.

First-time loan requests will be reviewed and disbursed within four hours and subsequent requests will be handled in just half an hour.

This P2P platform does not require mortgages and one-on-one meetings. Loan requests are sent to investors on e-wallet Vimo. Vay Muon will guarantee both principals and interest for investors.

What borrowers need to do is to download and install Vay Muon – Vay tien online on their smartphones, create an account and upload required documents. Vaymuon.vn automates the creditworthiness evaluation process by analyzing big data.

As for those wishing to become investors, they will also have to install Vay Muon – Nha dau tu, sign up and link their accounts with e-wallet Vimo.

When loan requests are approved, investors will be notified. After they decide to lend, money will be transferred from their accounts on Vimo to borrowers’ bank accounts.

When loans fall due, principals and interest will be transferred to the Vimo accounts of investors.

According to Dao Thi Trang, director of Vay Muon, cash flows between lenders and borrowers on Vaymuon.vn are regulated via an intermediate payment platform licensed by the central bank. Investors only know the names and borrowing purposes of borrowers, thus ensuring privacy for borrowers.

Enterprises in Hanoi-based industrial parks updated on tax, customs policies

A conference has been held recently to give information about relevant tax and customs policies to enterprises in industrial parks and export-processing zones based in Hanoi.

The event, held by the Hanoi Promotion Agency (HPA) on October 18, drew the participation of more than 100 companies as well as tax and customs officials.

At the conference, Bui Thai Quang, the deputy head of the General Department of Taxation’s risk management department, explained new customs regulations and incentives on exports and imports as well as ways of avoiding compliance risks.

Enterprises were also informed about the latest customs reforms and laws relevant to their activity.

Representatives of enterprises raised many questions and received specific and satisfactory answers, helping them to have a new perspective in order to comply with customs and tax policies properly.

Bui Thai Quang, on behalf of the General Department of Customs, took note of the enterprises’ feedback on tax and customs policies so that they can be further refined.

Hanoi aims for growth of 7.3%-7.8% in 2018

The capital city has set the target of increasing the size of its economy by between 7.3% and 7.8% next year.

The figures are part of a resolution adopted at the December 6 meeting of the municipal councillors, who had earlier passed a plan to build Hoa Lac into a satellite town of 600,000 residents.

Hoa Lac’s development is expected to be driven by a high-tech park and the new campus of the Vietnam National University, which is currently under construction.

Located approximately 30 kilometres to the west of Hanoi, Hoa Lac is connected to the city centre by the Thang Long Thoroughfare and planned rail and BRT lines in the future.

As part of the biannual meeting of the people’s council from December 4-6, Hanoi also supplemented the city’s list of key infrastructure projects for the 2016-2020 period and approved a plan for naming 19 new streets.

Vietnam attracts many Chinese investors' attention

Vietnam is currently attracting more Chinese investors, as announced at the Beijing-Tianjin-Hebei Investment and Trade Promotion Conference held in Ho Chi Minh City on December 6.

Speaking at the conference, Director of the Vietnam Chamber of Commerce and Industry (VCCI) – Ho Chi Minh City branch Vo Tan Thanh said that Vietnam – China cooperation has developed forcefully, particularly in the fields of trade, investment and tourism. 

China is the largest trade partner of Vietnam, while Vietnam is China’s ninth largest trade partner in the world and the largest in ASEAN.

Vietnam-China bilateral trade turnover reached US$72 billion in 2016 and US$82 billion in the first ten months of 2017. Vietnam mainly exports mobile phones, components, electronic devices, rubber, agricultural products and seafood to China, while importing most of the raw materials for the textile and garment and leather footwear industries, as well as steel and construction materials.

In terms of tourism, Vietnam welcomed 2.7 million Chinese visitors (accounting for 27% of total foreign tourists) in 2016. In the first eleven months of this year, the number of Chinese visitors to Vietnam was 3.6 million, an annual increase of 35%.

China now has more than 1,700 investment projects in Vietnam, with a total capital of approximately US$12 billion, mostly in the fields of processing, real estate investment and restaurant services.

Notably, since 2016, China has invested in numerous large-scale projects in Vietnam and is expected to soon become one of the countries five largest investors.

Geng Wei, Chairman of Tianjin Foreign Economic and Trade Promotion Association, said that Chinese enterprises are making efforts to improve their capacity for international cooperation in order to expand their business scale and trade.

In addition, many businesses want to invest in wood processing, furniture production and bicycle industries in Vietnam, as well as to enhance their cooperation with Vietnamese enterprises to transport and import tropical agricultural products and fruits through official channels.

Thu Thiem land selling quickly and sustainably

Real estate projects in Thu Thiem New Urban Area, the future business hub of Ho Chi Minh City, have been selling quickly and gaining value.

Land value in Thu Thiem increased by 30 to 40 per cent in the past three years, according a recent report released by JLL Vietnam.

While this is a considerable bump, JLL believes it is sustainable for several reasons. Initial land values are coming off a relatively low base, the speed of infrastructure construction has increased dramatically during this past period, the most recent residential projects launched in Thu Thiem have witnessed strong demand, and finally Thu Thiem is the largest undeveloped parcel of clear, master-planned land near the city centre.

Thu Thiem New Urban Area comprises 657 hectares, with 176 land parcels in total, more than 3.2 million square metres of accommodation, and 3.4 million sq.m of trading floor. It will be the new home of more than 145,000 residents and 217,000 labourers. To date, 10 investors have registered to invest in Thu Thiem, with total investment capital of $5 billion. Around 71 per cent of land plots (67 per cent of total land area and 81 per cent of total gross floor area) in Thu Thiem have been officially approved.

“On average, Thu Thiem’s land price is approximately one-third of District 1’s, and relatively low compared to neighbouring districts such as districts 3 and 4,” said Stephen Wyatt, general director of JLL.

According to Yong-Beom Kim, manager at GS Engineering and Construction, Thu Thiem is designated as Ho Chi Minh City’s new central business district (CBD).

“After the completion and operation of the infrastructure – including Metro Line No. 2 and bridges No. 2, 3, and 4, connecting to districts 1 and 7 – Thu Thiem will be operating as planned,” Kim said. 

In addition to land values appreciating in Thu Thiem, the neighbouring areas in District 2, such as Dong Van Cong, An Phu, and Thao Dien have also witnessed increasing land prices.

With rapid urbanisation, the establishment of Thu Thiem projects and some improvements in the legal and planning framework, it is reasonable to say that land prices will continue to increase over the coming years.

The largest beneficiaries from this price movement will be the early investors in Thu Thiem, as the higher risks that they had to bear in the early stages of development are compensated.

Cosimo Jencks, chief representative from Hong Kong Land, also said that with its refined master plan, disciplined authority, cleared land plots, modern infrastructure, and proximity to the current CBD, Thu Thiem will likely become Ho Chi Minh City’s most modern district, one which is urgently needed.

Thu Thiem is now home to different large-scale projects. Launched in 2015, Dai Quang Minh’s Sala project has sold 95 to 100 per cent of units, and recorded a 30 to 35 per cent increase in sales prices compared to when the units were first launched.

The Empire City project held launches in December 2016 and July 2017 for its Linden Residence and Tilia Residence projects, respectively. Both residential projects, totalling approximately 1,000 units, nearly sold out in the first few weeks after launch.

The average sale price of Tilia increased by approximately 20 to 25 per cent in comparison to Linden over the past six months.

With a booming high-end residential market and abundant opportunities for commercial development, District 2 has become the focal point for large-scale developments in the past three years. Because of the quality of the master plan and its proximity to District 1, Thu Thiem is possibly becoming the most attractive part of District 2.

Chinese firm completes garment-textile production chain in Vietnam

With the completion of a garment-textile production chain in Vietnam, Worldon Vietnam Co., Ltd under the Chinese Shenzhou Group is likely to expand investment in the Southeast Asian country.

Last week, the company put into operation the chain’s last project worth 310 million USD at Dong Nam (South East) industrial park in Cu Chi district, Ho Chi Minh City.

Tran Viet Ha, head of the investment section under the HCM City Export Processing and Industrial Zone Authority, said this is the biggest invested garment-textile project at an industrial park in the city.

Though the city does not encourage labour-intensive projects, including garment-textile ones, this project was licensed taking into account the investor’s commitment to using advanced technology.

Gain Lucky garment-textile factory at Phuoc Dong industrial park in Tay Ninh province of Shenzhou Group will provide materials for Worldon Vietnam’s factories. The company also built a fashion design centre.

Shenzhou manufactures knitwear products from the initial stage of making fiber, weaving and printing to the creation of final products for popular brands such as Nike, Adidas, Puma and Uniqlo.

Over the past 11 months, Vietnam’s garment-textile industry raked in 23.6 billion USD from exports, representing a year-on-year rise of 9.5 percent.

German car maker debuts Da Nang showroom

German car maker Volkswagen (VW) has debuted a showroom in the central city of Đà Nẵng, marking the 12th in Việt Nam and the second in the central and central highlands region after Buôn Ma Thuột showroom in Đắk Lắk Province.

Volkswagen Đà Nẵng said the showroom, which was built with total investment of VNĐ30 billion (US$1.3 million), will supply global standard service, spare parts and accessories and maintenance service for car models that have been introduced into Việt Nam’s market.

Eight models are available in Việt Nam, including the Volkswagen Beetle, Polo Sedan and Hatchback, Touareg GP, Passat GP, Tiguan, Sharan, Jetta and Scirocco with prices ranging from VNĐ690 million (more than $30,000) to VNĐ2.49 billion ($110,000).     

The German automobile maker has launched 12 showrooms in Hà Nội, Vinh, Buôn Ma Thuột, Đà Nẵng, Nha Trang, Bình Dương and HCM City.

Vietjet inaugurates Nha Trang-Seoul route

Low-cost carrier Vietjet inaugurated its Nha Trang-Seoul service, connecting the south central coastal province of Khanh Hoa and the Republic of Korea's capital city, on the afternoon of December 6 at Cam Ranh International Airport, Khanh Hoa. 

A return flight will be in operation on the Nha Trang-Seoul route every day, taking around 5 hours per leg. The flight will depart Nha Trang at 16:15 and arrive in Seoul at 22:45 (local time). The return flight will take off in Seoul at 01:50 (local time) and land in Nha Trang at 05:25.

This new route aims to serve the traveling demands of local people and tourists, connecting the two famous travel destinations, and contribute to promoting trade and integration in the region. On the inaugurating flight, passengers received gifts from Vietjet.

Tickets can be booked through all channels of Vietjet and within the golden hours from 12:00 to 14:00 (GMT+7) every day on the website www.vietjetair.com (also compatible with smartphones at https://m.vietjetair.com) or at www.facebook.com/vietjetvietnam by clicking the “Booking” tab, as well as via the hotline +84 19001886, and at domestic and international ticket offices and agents.

Payment can be made immediately with debit and credit cards, from Visa/ MasterCard/ AMEX/ JCB/ KCP/ ATM cards issued by the 32 Vietnamese banks, which have been registered for internet banking.

Inaugurating this new route, Vietjet now operates a total of six international routes connecting Vietnam and the RoK, offering more travel opportunities for the public.

Currently, the airline boasts a fleet of 45 aircraft, including A320s and A321s, and operates 350 flights each day. It has already opened 73 routes in Vietnam and across the region to international destinations.

Businesses commit to promote sustainable development     

Leading CEOs from Vietnamese and German businesses have taken a strong stand on promoting sustainable development through responsible use of natural resources at a forum held on Wednesday in Ha Noi.

The event, titled “Beyond APEC 2017 – Sustainable development opportunities for corporate sector,” was organised by WWF-Vietnam in partnership with the Ha Noi Young Enterprise Association.

At the event, participants committed to becoming prominent “agents for change” in efforts to protect wildlife by stopping the illegal consumption of wildlife products, which is also integrated in the corporate social responsibility policies of companies. They selected the rhino for the symbolic protection of a flagship species in response to the increasing call for saving the world’s largest mammal from the risk of extinction.

“Human beings are heading for catastrophe due to natural disasters, including rising sea level, deforestation, floods and climate change due to unsustainable development. A sixth mass extinction in earth’s history and the loss of 75 per cent of species is underway, and is more severe than previously feared. It means we are facing a natural resource crisis,” Van Ngoc Thinh, WWF-Vietnam, said.

“Demand for wildlife products, including rhino horn in Viet Nam, is a typical driver of the earth’s mass extinction. We highly appreciate the commitment of these leading CEOs to become champion in efforts to deter illegal use of wildlife products,” Thinh stressed.

“Global economic integration has posed great challenges to businesses operating in Viet Nam. However, it also creates opportunity, while compliance of international standards on labour, environment protection and responsible use of natural resources help enhance competitiveness of domestic enterprises,” member of the National Council for Sustainable Development and Competitiveness Pham Chi Lan said.

“In this world of globalisation, community social responsibility is no longer a ’knee-jerk’ reaction. It’s a necessity,” Lan added. 

HCM City hosts forum to boost capital flows from China     

The Shenzhen Stock Exchange and the HCM City branch of the Bank of China organised the China-Viet Nam capital co-operation forum on Tuesday to strengthen the financial links between the two countries.

The exchange and the lender signed an agreement at the event for a cross-border capital service mechanism, which is an online platform that will match Vietnamese projects with potential investors in China.

Participants at the forum discussed ways to promote two-way capital flows and support small- and medium-sized enterprises.

China is now the eighth largest foreign investor in Viet Nam. Figures from Viet Nam’s Ministry of Planning and Investment show that as of November Chinese companies have invested US$12 billion in 1,774 projects.

The investment has been in 10 sectors, mainly manufacturing and processing.

At the end of the third quarter bilateral trade had risen by 20.5 per cent year-on-year to $82.3 billion.

It is expected to hit the $100 billion mark this year. 

Room for Viet Nam to expand trade with Argentina     

Viet Nam and Argentina have great potential to expand their lists of export items, Vietnamese Ambassador to Argentina Dang Xuan Dung told a conference in Buenos Aires on Tuesday.

Many advantaged export items of Viet Nam such as timber goods, textile and garment, footwear and coffee have successfully marked their presence in the US, Japan and the EU, Dung said, expressing his hope that the same would be replicated in Argentina.

He added bilateral trade between the two countries experienced a positive increase of 20 per cent annually from 2012 to 2016, after the two nations established a comprehensive partnership in 2010.

Sharing Dung’s view, president of the Chamber of Importers of Argentina (CIRA) Ruben Oscar Garcia affirmed the determination of the Argentinian government to open the local market and provide opportunities for domestic firms to expand trade with foreign partners, including those from Viet Nam.

Two-way trade between the two countries reached US$2.3 billion and $2.9 billion in 2015 and 2016, respectively. The trade saw a year-on-year rise of 15 per cent to $2.3 billion over past nine months of this year and is likely to hit $3.5 billion by the year-end, he said.

Viet Nam is currently Argentina’s sixth-largest trade partner with major export staples such as footwear, electronics, textile and garment, and agricultural machines, while Argentina is Viet Nam’s second largest supplier of foods and farm produce.

Japan lures Vietnamese investors with free support     

With a growing economy, sophisticated market, innovation, together with business-friendly infrastructure and a comfortable living environment, Japan is attractive destination for Vietnamese enterprises to invest in.

The statement was made by Hironobu Kitagawa, chief representative of Japan External Trade Organisation (JETRO) Ha Noi, at a conference to introduce investment support programme to Japan held in Ha Noi yesterday.

Apart from investment promotion from Japan to Viet Nam, JETRO offers a programme to support Vietnamese businesses when investing to Japan.

Specifically, when a Vietnamese enterprise wishes to invest in Japan, such as opening a representative office, branch, subsidiary or legal entity in Japan, after completing the registration procedure with JETRO, the companies will be offered support in Japan for free.

In terms of facilities, temporary office space will be provided for the firms, including internet, telephone, fax and photocopying services within 50 working days at the Invest Business Support Centre (IBSC) located in six cities in Japan, namely Tokyo, Yokohama, Nagoya, Osaka, Kobe and Fukuoka. In addition to the private office for one to six people, the companies also can use meeting rooms, conference rooms and reception rooms at the IBSC.

At the IBSCs, experts will consult businesses on various matters, including on tax-related procedures, employment law, residency law, local business conditions and more.

From 2003 to date, some 16,000 foreign companies have used this programme, of which, approximately 1,600 enterprises have successfully opened businesses.

Several Vietnamese companies have used the support programme from JETRO and have successfully opened firms in Japan such as Viet Nam’s largest information technology service company FPT (opened in 2005 in Tokyo) and CMC Corporation (opened October this year in Yokohama).

On the obstacles of Vietnamese firms when investing into Japan, Kitagawa affirmed that the Japanese government is concentrating on attracting investment from foreign countries, especially Viet Nam, so the government will create the best conditions for businesses to invest in Japan.

However, one of the difficulties for Vietnamese companies when investing in Japan is financial issues, as opening offices, leasing working places, operating firms and hiring employees in Japan is quite expensive, Nguyen Si Hai, JETRO Ha Noi’s representative told Viet Nam News. 

15th VN Expo opens in HCM City     

The 15th Viet Nam International Trade Fair (Vietnam Expo 2017) opened in HCM City on Wednesday.

On display are electrical and electronic equipment, tech toys, industrial machinery, construction materials, hand tools, interior and exterior decoration items, food and beverages, and beauty products.

Speaking at the opening, Pham Van Khanh, director of the Viet Nam National Trade Fair and Advertising Joint Stock Company (VINEXAD) Saigon, the organiser, said Vietnam Expo features 800 booths set up by companies from 16 countries and territories, including Belgium, Germany, Denmark, Taiwan, Republic of Korea, Malaysia, mainland China, Spain, Italy, and Viet Nam.

For the past 14 years the fair has been a bridge connecting Vietnamese and international businesses, allowing them to meet, discuss business co-operation and promote trade and investment, he said.

Several business meeting and seminars are scheduled on its sidelines, such as a business meeting between Vietnamese and Chinese mechanical engineering firms, a seminar on co-operation with China’s Tianjin and Hebei provinces and Beijing, and a dialogue on the quality of infrastructure for the future of Asia, he said.

The 2017 Vietnam Hardware and Hand Tools Expo is being held at the same venue, Nguyen Van Nga, deputy director of the Viet Nam Trade Promotion Agency, said.

This has attracted more than 200 local and foreign companies specializing in metal tools, building hardware, fasteners, securities, locks and fittings, and will also feature commercial programmes and seminars.

The two expos, on at the Saigon Exhibition and Convention Centre in District 7, will go on until December 9 and are expected to welcome more than 15,000 visitors.

Conference boosts VN-China investment, trade ties

Businesses in Beijing and Tianjin and Hebei provinces in China want to promote investment and trade with Vietnamese partners, according to the Tianjin Foreign Economic and Trade Promotion Association.

Speaking at the trade and investment promotion conference between Vietnam and China’s Beijing, Tianjin and Hebei provinces in HCM City on December 6, Geng Wei, the association chairman, said Vietnam is a promising market.

Nguyen Thi Huyen Ngoc of the Investment Promotion Centre for southern Vietnam, said China currently ranks eighth out of 120 countries and territories investing in Vietnam with 12 billion USD in 1,784 projects.

Chinese firms invest mainly in manufacturing, production and distribution of power, gas and water, real estate, hospitality, construction, and mining, she said.

Vo Tan Thanh, Director of the Vietnam Chamber of Commerce and Industry’s HCM City office, said Vietnam and China have good relations, especially in commerce.

China is Vietnam’s largest trade partner and Vietnam is China’s largest trading partner in ASEAN and ninth largest in the world, he said.

Last year, their trade was worth 72 billion USD, with Vietnam’s imports being 52 billion USD, he said.

But according to Chinese customs’ statistics, trade was actually worth 98 billion USD last year if cross-border trade is considered, he said.

“This year trade is expected to top 100 billion USD, a target the two sides had set only for 2020.”

Vietnam’s main exports are telephones, crude oil, coal, rubber, rice, fruits and vegetables and seafood and imports include feedstock for manufacturing garment and textiles and steel and agricultural produce.

“In recent years China has increased investment in Vietnam, and this is expected to continue in the future,” Thanh said.

Ngoc said the processing and manufacturing sectors are expected to attract more Chinese investment.

With its stable political situation, rapid economic growth, clear and transparent investment policies, large workforce, improved infrastructure, and regional and global economic integration, Vietnam is an attractive investment destination, including for Chinese investors, she said.

She also spoke about investment procedures in Vietnam, tax breaks offered to priority sectors and projects that are soliciting investment.

Vietnam has 324 industrial parks, of which 34 have foreign investors.

It currently focuses on calling for investments in high value-added projects, hi-tech and environment-friendly projects, large-scale projects, IT and bio-technology serving modern agriculture, infrastructure development in the form of PPP, and modern services as well as encouraging a gradual switch from sub-contracting to production, she said.

Thanh said Chinese businesses could find a lot of opportunities in Vietnam, including HCM City.

The conference is a good opportunity for businesses from the two countries to understand each other’s markets and enhance investment and trade ties, he added.

Organised by Vinexad and the VCCI in collaboration with other organisations, the conference was part of the 2017 Vietnam Expo that is being held at the Saigon Exhibition and Convention Centre in HCM City from December 6 to 9.

More than 150 exhibitors from China’s three provinces are participating in the trade fair to study Vietnamese market and seek business opportunities here, Geng said.

At the conference, Geng also called on Vietnamese businesses to come to Tianjin to explore investment opportunities there.

Wood, timber product exports to hit 8 billion USD

Exports of wood and timber products are expected to hit 8 billion USD in 2017, surpassing the yearly target of 7.5 billion USD, according to Nguyen Ton Quyen, Vice President and General Secretary of the Vietnam Timber and Forest Product Association.

The figure reached nearly 7 billion USD in January-November, up 10.5 percent from the same period last year, said Quyen.

Strong growth of wood exports was seen in key markets such as the US (up 18.8 percent), the RoK (14.2 percent) and Canada (13.4 percent). The trend was attributed to an increase in processed wooden products, such as MDF (Medium-density fibre board), particle board and artificial board.

Annual wood trade between Vietnam and EU is 650 – 700 million USD, or 12 – 15 percent of the nation’s export value, according to Quyen.

The Vietnam – EU free trade agreement will become effective in 2018 and bring tariffs on wood products to zero, Quyen said, adding that the agreement is expected to lift trade to one billion USD.

Meanwhile, To Xuan Phuc from the US-based Forest Trends, said Vietnam’s wood and timber exports to the US, currently worth up to 2.7 billion USD, might be affected by the US’s policy of creating more jobs in the US.

The US, Japan, the EU, China and the Republic of Korea are the biggest importers of Vietnam’s wood and timber products, accounting for 90 percent of the total value of the sector. The US makes up 42.7 percent, followed by China (14.1 percent) and Japan (13.7 percent).

VinGroup named top private firm in Vietnam

Property developer VinGroup was named the biggest private firm in 2017 by the Vietnam Report Company on December 5.

The company’s rational investment process and business development strategies helped secure the honour.

As of September 30, the group’s total assets were calculated at nearly 205 trillion VND (9.02 billion USD), up 24.4 trillion VND (1.07 billion USD) from the end of 2016. Accumulated net revenue in the first nine months in 2017 increased 65 percent year on year to 57.1 trillion VND (2.51 billion USD) thanks to good growth of property transactions, resort services, entertainment, retail sales and education.

Earlier, the group’s four trade brands, Vinhomes, Vincommerce, Vinpearl and Vincom Retail, entered Top 50 Most Valuable Vietnamese Brands 2017 by Brand Finance, a valuation and strategy consultant.

Vinhomes ranked fourth with brand value of 604 million USD, up 18 percent from last year. This is the second consecutive year Vinhomes has entered the list.

Meanwhile, Vincommerce, Vinpearl, and Vincom Retail placed 19th, 26th and 32nd position, respectively.

The Vincom Joint Stock Company (VinGroup) was established in May 2002 with initial charter capital of just 196 billion VND (9 million USD). The company has emerged as a prominent player in retail, office and commercial real estate with many large projects, including the Vincom Mega Mall Royal City in Hanoi, said to be Asia’s largest underground retail and entertainment complex.

In January 2012, Vinpearl JSC merged into Vincom JSC to form VinGroup JSC with charter capital exceeding 7 trillion VND (308 million USD). The group has positioned itself as the leading multi-industry corporation in Vietnam. Its revenues rose to 57.7 trillion VND (2.6 billion USD) in 2016 along with its rapid expansion into retail, healthcare, education, automobile production and agriculture industries.

VinGroup has been planning to place itself on the global economic map. VinEco, the group’s foray into the agriculture sector, which provides safe and clean food, plans to export some of Việt Nam’s agricultural products to Singapore, Malaysia, Hong Kong, Japan and Dubai. In the healthcare industry, the company is collaborating with partners in the United States, Japan, France and Singapore to treat serious diseases like cancer, diabetes and cardiovascular problems.

VASEP: Tra fish exports to Spain continue falling

Vietnam’s tra fish exports to Spain see no sign of recovery following inaccurate news broadcast by Spanish media early this year, the Vietnam Association of Seafood Producers and Exporters (VASEP) has said.

As of November 15, export value dropped by 72.7 percent from the same period last year, bringing the market from the third biggest importer of Vietnam’s tra fish in the European bloc down to the sixth.

According to Globefish under the Food and Agriculture Organisation of the United Nations, Vietnam’s tra fillet exports to Spain fell to 6,000 tonnes in the first half of this year, half that of the same period last year.

Truong Dinh Hoe, VASEP Secretary General said the incorrect and defamatory information broadcast on the Spanish television channel Cuatro caused a strong drop in exports, which are forecast to fall 60 – 75 percent year on year.

Spain is an important market in Europe for Vietnam. The two countries have recorded increasing trade, with two-way trade hitting 2.9 billion USD in 2016 and 835 million USD in the first four months of this year. They aim to bring bilateral trade turnover to 5 billion EUR by 2020. 

Vietnam mainly exports aquatic products, coffee, textiles, rice and footwear to Spain, while importing chemicals, machines, pharmaceuticals, milk, electronics and spare parts.

In January, Cuatro reported tra fish in Vietnam was being raised in unclean cages and fed with non-industrialised feed like dead fish and other food waste. It went on to say that this explained low prices of Vietnamese tra fish.

After receiving information about the Cuatro report, VASEP sent a letter to the local media, rejecting it in its entirety, stressing that Vietnam’s tra fish production was hygienic and safe.

Vietnam’s top 100 sustainable firms revealed

Vietnam’s 100 most sustainable businesses 2017 were announced at a ceremony in Hanoi on December 6.

They were selected from nearly 500 entries to the programme ranking the most sustainable businesses in Vietnam in 2017, jointly conducted by the Vietnam Chamber of Commerce and Industry (VCCI) and Vietnam Business Council for Sustainable Development (VBCSD).

Some among them are the Phu Nhuan Jewelry JSC, Da Nang Port Logistic JSC, Thang Long Invest Group, and Herbalife Vietnam.

According to the organisation board, this year’s programme made the assessment on the basis of 134 criteria, focused on socio-economic and environmental aspects.

In the future, the list of criteria will be simplified and revised to suit reality so that it can be applied by micro and small- and medium-sized enterprises.

Addressing the event, VCCI President Vu Tien Loc highlighted the presence of new private firms in this year’s ranking, saying that this proves improvement in the country’s business climate.

Tran Ngoc Anh from Dekalb Vietnam - one of the honoured firms - said the recognition gives her company a motivation to pursue sustainable development goals at home and abroad.

Initiatives to promote sustainable rice production honoured

Nine out of 11 initiatives on applying technologies to increase rice yield and reduce greenhouse gas emission were honoured at a ceremony held in Thai Binh city, the Red River Delta province of the same name, on December 6.

The award worth 55,000 USD in total is part of the AgResults Vietnam Emissions Reduction Pilot (AVERP).

The honoured units were successful in increasing rice yield and reducing greenhouse gas emission through a six-month test conducted in Thai Binh.

Nguyen Hong Son, Director of the Cultivation Department under the Ministry of Agriculture and Rural Development (MARD), said the initiative proved effective in the 2017 crops in spite of harsh weather, hoping for better results when the participants well control conditions in the next crops.

The AVERP project, managed by the Netherlands Development Organisation (SNV), aims to provide financial assistance for stakeholders to pilot and multiply new technologies, tools and approaches in rice cultivation to promote sustainable rice production.

The 8 million USD project is being carried out for four year in two phases in Thai Binh province.