Wire-producing factory for Boeing may be set up in HCMC

Eugene Kim (L), chairman of South Korea’s Huneed Technologies

A factory producing wires for U.S. airplane maker Boeing may be set up in HCMC in the coming time, said Eugene Kim, chairman of South Korea’s Huneed Technologies, a strategic supplier of Boeing Company.

Speaking at a meeting with the city’s Chairman Nguyen Thanh Phong on November 27, Eugene Kim revealed Huneed Technologies is bidding to provide equipment for Boeing. If the company wins, it may expand its production by establishing a factory in the Saigon Hi-Tech Park in HCMC’s District 9, which he visited the same day.

He explained that the local low-cost budget airline Vietjet has plans to purchase 100 Boeing aircraft, a large order which may bring the U.S. firm to Vietnam to produce certain components.

City chairman Phong pledged the municipal government would create favorable conditions for foreign companies, especially those in supporting industries, to set up shop in the city. If the wish of Eugene Kim comes true, the city would team up with the company to train workers.

Vietnam – Poland economic forum opens in HCM City

A Vietnam – Poland economic forum convened in Ho Chi Minh City on November 30 with the attendance of Polish President Andrzej Duda who is on a visit to Vietnam.

Addressing the forum, the Polish President said the nearly-70-decade-long relations between Vietnam and Poland have laid the basis for bilateral cooperation across sectors, particularly in economics.

Vietnam, among the most dynamic economies in the ASEAN region, is one of the five prioritised markets Poland has chosen for its investment and business operation, he added.

Through the forum, Poland encourages Vietnamese and Polish firms to study each other market and exchange information to establish long-term partnerships, Andrzej Duda noted.

Minister of Information and Communications Truong Minh Tuan stated Poland is an important partner of Vietnam in Europe. 

He said Polish investment in Vietnam is on the rise, with value tripling from 2014 to 2017. However, the outcome still falls short of potential offered by both sides, the minister added.

He said Poland is the 6th biggest economy in Europe, while Vietnam holds strengths in investment climate quality, consumer market, and human resources. Both nations have signed various agreements and memoranda of understanding to facilitate cooperation.

He urged the local business community to make use of the forum to gain insights into the Polish markets and chances for their investment in electronic components, IT, and farm produce.

The minister urged Polish investors to do business in Vietnam for mutual benefit and development of bilateral relations.

Vietnam’s CPI up slightly in November

Vietnam’s consumer price index (CPI) in November went up 0.13 percent monthly, 2.62 percent annually and 2.38 percent from the last December, reported the General Statistics Office (GSO). 

The 11-month CPI rose 3.61 percent year-on-year. 

Eight out of the 11 commodity groups enjoyed rises, with the highest growth of 0.68 percent seen in transport. It was followed by medicines and health services (0.2 percent); apparel, headwear and footwear 

(0.15 percent); goods and other services (0.14 percent); food and catering services (0.11 percent).

Only prices of housing and construction materials, post and telecommunications, and culture, entertainment and tourism dropped. 

Do Thi Ngoc, deputy head of the GSO’s Prices Statistics Department, attributed the price hike to the recent flood in the central region which pushed up food prices in Phu Yen (1.62 percent), Ninh Thuan (1.51 

percent), Khanh Hoa (1.05 percent), Quang Ngai (0.98 percent) and Binh Dinh (0.74 percent). 

Petrol price adjustments on November 4 and November 20 also raised transport prices by 0.68 percent. Health service price hikes in Quang Ninh, Quang Tri and Bac Lieu and higher tuition fees in Quang 

Ninh and Bac Lieu also contributed to CPI growth. 

Falling prices of pork, iron and steel, domestic tours curbed CPI hike. 

According to the GSO, core inflation that is the CPI excluding food and beverages, energy and State-controlled services like healthcare and education, in November rose by 0.06 percent from the last month, and 1.32 percent year-on-year.

The average core inflation in the first 11 months was estimated at 1.44 percent, lower than the previous forecast of 1.6 – 1.8 percent indicating the effectiveness of the current monetary policy.

The CPI in December is predicted to rise slightly from the previous month, mostly due to adjusted prices of food, health care services, construction materials and petrol.

Hai Phong hosts exhibition on energy saving

The International Exposition on Technologies and Products for Energy Saving and Environment Protection (E&E Expo Hai Phong 2017) kicked off in the northern port city of Hai Phong on November 29.

The exhibition aims at introducing the achievements of technology development and energy saving solutions, promoting products, seeking partners to expand the production market and finding distribution agents for domestic and foreign enterprises.

It has attracted the participation of 56 companies with around 70 booths and outdoor display areas, introducing energy saving products, renewable energy, nuclear energy and household electrical appliances, as well as industrial equipment and environmentally friendly products.

In addition, the exhibition is also a space for businesses and experts to provide solutions on energy saving and environmental protection for daily life and business production, contributing to the propagation and raising of public awareness on economical and efficient use of energy for people, organisations and enterprises.

The event is held at Vietnam - Czech Friendship Cultural Palace and will run until December 2.

German firms eye investment in Hanoi

Members of the German Asia-Pacific Business Association (OAV) want to explore cooperation opportunities in urban development, infrastructure facility, means of transportation, energy, environment and human resource in Hanoi,

Timo Prekop, member of the OAV Board, informed Nguyen Duc Chung Chairman of the municipal People’s Committee of the businesses’ intention at a meeting in Hanoi on November 29.

He said German businesses in general and OAV members in particular hope to receive assistance from the city authorities in seeking opportunities in Vietnam. 

Welcoming the delegation, Chung said Hanoi is working on some priorities  such as upgrading the supply of clean water to meet European standards, planting one million trees, developing an environment monitoring system, and improving local health care facilities and services.

The city wants to apply European technologies in those fields, and a number of German advanced technologies have been applied in health care, landscaping, and wastewater treatment, he said.

He called on foreign and domestic firms to invest in waste-to-energy sector, build public toilets, and clean lakes and ponds in the city.

Underlining the fruitful cooperation of the two sides, Chung affirmed that in the coming time, the city will focus on sharing experience, transferring technology and luring investment from European firms, particularly German ones.

Hanoi will facilitate bilateral cooperation with Germany, thus contributing to promoting the Vietnam – German relationship, Chung pledged.

HCM City enhances investment cooperation with Italy

Chairman of the Ho Chi Minh City People’s Committee Nguyen Thanh Phong on November 29 held talks with Ivan Scalfarotto, Italian Deputy Minister of Economic Development who is leading a business delegation on a visit to the city.

The leader of HCM City hailed the thriving cooperation between the city and Italy, notably with the city of Turin.

HCM City is striving to build itself into a centre of economy, finance, trade and science-technology in the region, Phong said. To realise the target, the city strongly needs foreign investment, especially in four major industries of food processing, chemical-rubber, mechanics and electronic-information technology.

The official vowed to create favourable climate and ensure legitimate rights and interests for Italian investors in HCM City.

Lauding the dynamism of HCM City and its role in Vietnam’s economic development, Scalfarotto said that Italian firms are willing to work with HCM City in various fields, including mechanical engineering, green energy and traffic infrastructure.

He stressed that the Italian Government is also ready to support Italian firms’ partnership with HCM City to develop small- and medium-sized enterprises, along with helping the city improve product quality in the 

industries of textile, leather shoes and wooden furniture as they are Italy’s strong points.

At the meeting, Alessandro Decio, CEO of Italy Export Credit Agency said the fund will earmark 250 million EUR for Italian firms that want to operate in Vietnam’s oil and gas industry, and another 400 million EUR for those which wish to invest in mechanical engineering, metal products and related fields.

The fund is also willing to provide support for Vietnamese businesses to buy machinery and technology from Italy, he said.

Italian businesses expressed their interest in projects in HCM City in textile, architecture, smart urban building and traffic infrastructure.

Two-way trade of HCM City and Italy hit 600 million USD in 2016 and 510 million USD in the first 10 months of 2017. As of October 31, there were 28 Italian-funded projects in HCM City with total capital of about 70 million USD.  

Argentina aims to up VN imports     

Argentina does not only want to boost exports of agricultural products to Viet Nam but also wants to buy more Vietnamese products, an agriculture official from that country has said.

Rosario Martearena, undersecretary, agricultural markets, in the Ministry of Agriculture, is leading a trade mission comprising 11 companies selling animal feed, soybean, aquatic products, beef, etc. to HCM City and Ha Noi to explore trade opportunities.

Speaking at a business matching event in HCM City yesterday, she said Argentina and Viet Nam have a very good partnership, especially in trade, as shown by their rising trade in recent years.

Last year Viet Nam became only the fourth country import more than US$2.5 billion worth of products from Argentina.

Of Argentina’s exports to Viet Nam, soybean meal accounted for nearly 59 per cent, maize for 29 per cent, and wheat for 5 per cent.

She said through her visit Argentina hopes to diversify its exports to Viet Nam by also shipping beef, goat meat, pork and aquatic products.

“I am also working to open more market opportunities for Viet Nam. Argentina is very interested in Vietnamese fruits and garments and textiles,” she said.

Nearly half of the Argentinian companies represented in her delegation have done business with Viet Nam and so already know the market and about businesses here, she said.

“The Vietnamese embassy in Argentina is very supportive in providing us with market information.

“They have organised Viet Nam Day to present Vietnamese products and brought Vietnamese sellers there to introduce a wide range of products, not only in the agricultural sector but also in the industrial sector.”

Ho Xuan Lam, deputy director of the HCM City Investment and Trade Promotion Centre, said his centre and the city have organised many trade promotion activities including business seminars and B2B events to acquaint local companies with the Argentinian market and solicit investment from Argentinian businesses.

Argentina is now one of Viet Nam’s most important trade partner in Latin America.

Bilateral trade topped $2.9 billion last year and is expected to rise to $3.5 billion this year.

Viet Nam mainly exports footwear, textiles, rubber, electronic parts, and plastic products and imports soybeans, soybean oil, maize, wheat, cattle feed and drugs.

Next year Viet Nam and Argentina will celebrate 45 years of diplomatic ties, which would be an important milestone encouraging the two sides to further strengthen co-operation, he said.

There is still a lot of untapped potential in trade for the two countries to exploit, he added.

ADB judges public-private-partnership investment in Vietnam

The Asian Development Bank on November 27 launched its first annual report monitoring the progress of the public-private-partnership (PPP) environment in member countries, including Vietnam.

Recognizing the country’s rising public debt and State-owned enterprises dominating the development and management of infrastructure projects, the Government is set to rein in the State role in the economy and encourage the private sector-led growth, according to the Public-Private Partnership Monitor.

The PPP regulations provided in Decree 15 and taking effect in 2015 creates a legal framework to attract more private investment in the development of infrastructure in the nation.

The PPP Monitor outlines the key advances in the PPP framework which include enabling availability/performance-based payment schemes; removing the previous limit on viability gap funding of 49% of total investment cost; enabling wider scope of infrastructure projects to be procured as PPP; and establishing processes for PPP project identification, appraisal and approval.

From 1990 to 2016, the country closed 84 PPP projects amounting to US$16.2 billion, with 79% of the projects in the energy sector. However, no PPP projects have been implemented under this latest framework.

The PPP Monitor finds that current challenges include foreign lenders’ security issues, as the framework for credit enhancements and guarantee mechanisms remains unclear, and restrictions on mortgage over land-use rights in favor of foreign banks where land is conferred on a rent-free basis.

The Public-Private Partnership Monitor tracks the development of the PPP business environment across ADB member countries and provides insights for governments on structuring a sound environment for PPP.

The report aims to benefit both policymakers and investors by providing in-depth information and data on the business environment for PPP over time, enabling infrastructure developers to assess opportunities across countries and sectors.

Annual updates to the report will flag important reforms that could attract or deter investors, allowing policymakers to monitor progress in the PPP environment.

Local enterprises complain about tax, customs policies

Despite many administrative procedure reforms, enterprises said complex tax and customs procedures have hindered their operations, Lao Dong newspaper reports.

At an annual meeting between the Ministry of Finance and enterprises on November 27, many complaints were heard on tax and customs procedures and policies.

Doan Duy Khuong, vice chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said rapid changes on tax policies have caused difficulties for enterprises while procedures to heavily penalize enterprises incurring tax debts remain complicated.

Many enterprises said they could not send their tax data to tax authorities online as the system often reports errors.

Besides, tax agencies in many instances conduct late inspections, which should have been done five to ten years earlier, and after detecting these enterprises have not fulfilled their tax obligations, they slap steep fines and caused huge losses for enterprises.

Enterprises also complained about vague solutions by competent agencies to their problems. When asked for specific instructions to problems encountered by enterprises, such agencies simply offer them circulars and decrees as references, instead of giving details.

Customs officials’ behavior, asynchronous cooperation between customs agencies and relevant ones, and long time to implement procedures are other shortcomings of the sector.

VCCI proposed the Ministry of Finance review and amend legal documents, clearly explaining customs procedures to enterprises.

Khuong of VCCI said feedback from companies has been reported to the Ministry of Finance, the General Department of Taxation and the General Department of Vietnam Customs for review.

Saigon Co.op opens first Co.op Food stores in Hanoi

The Saigon Union of Trading Co-operatives (Saigon Co.op) on Saturday opened the first two convenience food stores Co.op Food in Hanoi City.

Co.op Food Hapulico store is located at 1 Nguyen Huy Tuong Street in Thanh Xuan District, and Co.op Food Bac Ha store on the first floor of Block CT2 of Bac Ha C14 Building on To Huu Street in Nam Tu Liem District. The two stores each stock about 4,000 essential goods and fresh food.

In addition to Hanoi’s specialties like Bao Minh young rice cake and Hoa Lam jam, the stores also sell specialties of other provinces like grapefruit and coconut candy from Ben Tre, seedless grapes from Ninh Thuan, and dragon fruit from Phan Thiet.

The stores are open from 6 a.m. to 9 p.m. daily, offer telephone order service and home delivery, and accept payments by debit and credit card, gift voucher, and privilege for VIP customers like other Co.op Food stores in HCMC.

With 20-30 stores opened every year, Saigon Co.op now has 181 Co.op Food stores in HCMC and Hanoi. The firm also operates 90 supermarkets nationwide.

Local mechanical firms decry unfair tax policy

Vietnamese mechanical enterprises are at a disadvantage as they are subject to a 10-15% tax rate on imported equipment while foreign-made machines are exempted from import duty, said Do Phuoc Tong, chairman of the HCMC Association of Mechanical Engineering.

At a press conference on the 15th Vietnam International Trade Fair 2017 (Vietnam Expo 2017) and Vietnam Hardware & Hand Tools Expo 2017 last Friday, Tong said the policy has made production costs of local enterprises surge, so they find it hard to compete with overseas rivals.

Local enterprises and international investment funds are not interested in the sector due to small profits, Tong added.

It is highly risky for local enterprises to make new investments because they have to face fierce competition from foreign firms.

Meanwhile, foreign mechanical companies, such as those from Japan and South Korea, can easily find customers in Vietnam thanks to cooperation with groups implementing projects in the country. Therefore, Vietnamese firms cannot tap these projects, especially those that enjoy preferential policies.

As a result, Vietnamese mechanical firms have to find opportunities in foreign markets. Several local enterprises have supplied precision components to foreign aircraft and metro manufacturers as they find it difficult to cut local deals.

Tong highly valued local manufacturers’ capacity and techniques, saying they have managed to export mechanical products and components to many countries worldwide.

He expressed his concern over opportunities for Vietnamese enterprises to be involved in foreign investment projects in Vietnam.

Therefore, Tong proposed Vietnam should create a level playfield to support domestic enterprises.

Vietnam Expo 2017 and Vietnam Hardware & Hand Tools Expo 2017 will be held by the Vietnam National Trade Fair and Advertising Company (Vinexad) at the Saigon Exhibition & Convention Center (SECC) in HCMC from December 6 to 9.

Vietnam Expo 2017 will feature 800 booths of 750 enterprises from 16 countries and territories such as Belgium, Taiwan, Germany, Denmark, the Netherlands, South Korea, Hong Kong, Malaysia, the U.S., Japan, China, Thailand, Switzerland, Spain, Italy and Vietnam.

They will showcase their electric and electronic products, technological toys, machinery and components, building materials, hardware, hand tools, and indoor and outdoor furniture, food and beverages and beauty care products.

Meanwhile, Vietnam Hardware & Hand Tools Expo 2017 has attracted 200 firms from 16 countries and territories to display tools, DIY (Do It Yourself)-building hardware, and locks-fittings among others.

Mekong Delta provinces call for investments in agriculture

Three Mekong Delta provinces, Long An, Tien Giang and Dong Thap, have called on investors to develop 16 agriculture projects worth trillions of Vietnam dong, heard an investment promotion conference in Long An last Saturday.

The Long An government calls for investments in nine agriculture projects worth VND3.52 trillion (US$155 million). Notably, a lemon processing project with a material growing area of 550 hectares in Ben Luc District requires a total investment of VND1 trillion, according to the organizer of the event.

Meanwhile, Tien Giang Province put forth four projects worth over VND1.5 trillion (US$66.2 million), especially a hi-tech agricultural park project spanning 197 hectares in Chau Thanh and Tan Phuoc districts worth VND1.2 trillion.

Dong Thap is in dire need of capital for three projects, with one for a logistics center and a wholesale fruit market, and the other two for hi-tech agriculture sub-zones in Sa Dec City and Cao Lanh City. However, local authorities did not reveal their total investment needs.

Nguyen Van Duoc, vice chairman of Long An Province, said the local government will further improve their investment environment, and develop infrastructure within and beyond industrial parks in order to facilitate agricultural production.

“We also further administrative reform and train (local) manpower in a bid to meet the requirements of enterprises. The provincial government is willing to create favorable conditions for investors,” he stressed.

Dinh Thi Phuong Khanh, deputy director of Long An Province’s Department of Agriculture and Rural Development, told the Daily on the sidelines of the conference that the provincial government will shorten the time to allocate land, and offer tax and land rent incentives for investors.

Besides, she said, the local government is carrying out breakthrough programs in order to promote the development of the hi-tech agriculture sector.

Delegates at the conference witnessed the signing of seven memorandums of understanding on product consumption and business cooperation among local organizations.

Binh Duong aims to enter Smart21 Communities

The government of Binh Duong Province has made up its mind to enter the Intelligent Community Forum (ICF), a global network of cities and regions with a think tank at its center, in a bid to be included in the Smart21 Communities of 2021.

The provincial government last week held a press briefing on the 2017 Binh Duong Smart City Conference in order to implement the Binh Duong Smart City scheme.

Mai Hung Dung, vice chairman of Binh Duong Province, said the local government attaches importance to great visions which create breakthroughs and comprehensive innovations in which manpower plays a vital role, and a smart city can be regarded as a dynamic, creative and connected ecosystem.

The provincial government plans to apply the “Triple Helix” model of the Netherlands’ Eindhoven City which involves a partnership among the State, enterprises, scientists and schools, and thus creates conditions for them to share their knowledge, aspiration, and resources. The move is to develop a shared vision, and carry out innovative action plans for the province.

Based on the experience of Eindhoven, Binh Duong has decided to become a member of the ICF, and will be striving to fall into the Smart21 Communities in 2021.

The vice chairman said the province has come up with a series of action plans in order to implement a social-economic strategic program called “Binh Duong Navigator 2021” which is the sister of the “Triple Helix” model.

He added many projects which are related to education and training, scientific research, startups and urban modernization have been set up so far.

He stressed the province is always striving to promote its creative dynamics, update new trends, and learn experiences and knowledge from global leaders and experts, as well as appreciate the role of cooperation.

Samsung opens R&D center in HCMC

Samsung last Friday inaugurated a research and development (R&D) center and an executive briefing center (EBC) at the Saigon Hi-Tech Park (SHTP) in HCMC’s District 9.

Samsung HCMC Research & Development Center at the Samsung Electronics HCMC CE Complex (SEHC) includes a mold center, and automation, facility, QA test, circuit, software, modeling and 3D scanning labs, all of them located adjacent to the manufacturing area to promptly provide technical support.

The center is developing techniques relating to washing machines, vacuum cleaners and fridges.

At the opening ceremony, Le Hoai Quoc, head of the SHTP authority, said the city government and the SHTP authority highly evaluated Samsung Electronics Vietnam for the new R&D establishment and considered it an essential condition to grant the investment certificate.

As much as US$600 million has been invested in machinery and equipment of the center, excluding costs for office construction. Covering some 5,000 square meters, the center is responsible for advanced technology research and application to develop Samsung’s traditional products.

The center has employed nearly 400 staff and the number will increase to 500 by 2020, mainly Vietnamese employees.

Quoc believed Samsung’s project to develop hi-tech electronic and telecom products would help promote foreign investment in Vietnam, train high-quality workforce, apply and transfer technology, build links with domestic enterprises to develop supporting industries and make good use of advantages for mutual benefits.

SEHC with an investment of US$2 billion is the continuation of the Samsung Vina project with a larger scale.

SEHC manufactures household appliances such as smart TVs, LED TVs, screens, air-conditioners and washing machines which have been exported to 65 countries to bring annual revenue of billions of U.S. dollars. This is the biggest foreign direct investment project at SHTP.

In March last year, Samsung Electronics Vietnam received an investment certificate for an R&D center worth US$300 million in Hanoi to research and develop hi-tech electric, electronic and telecom products.

Meanwhile, the EBC in HCMC’s SHTP is seen as Samsung’s biggest in Southeast Asia. The 500-square-meter center which consists of 11 areas equipped with modern facilities offers intelligent solutions for transport, entertainment, fashion, restaurants-hotels, education, plants, and air conditioning system among others.

Flights to Can Tho may get compensation for losses

The government of Can Tho City has proposed using the State budget to offset losses incurred by airlines opening new routes to the city, Tuoi Tre newspaper reports.

In a document submitted to the municipal People’s Council, the city government suggested it would use the State budget to pay 30% of ticket prices of flights departing from Can Tho International Airport.

The subsidy aims to encourage airlines to open new domestic and international routes to and from Can Tho to meet the travel demand of residents of Can Tho City and the Mekong River Delta as a whole, boost the development of tourism, trade and service, and contribute to improving the efficiency of Can Tho International Airport.

Airlines that might be offered the subsidies include those that incur losses on new routes while following exactly the flight frequency as committed. In case airlines could not maintain the committed flight frequency, they will have to refund the financial support.

For domestic flights, airlines should commit to operate new routes with a frequency of at least three flights per week in at least three years. For international flights, they have to open and operate new routes with a frequency of a minimum of two flights per week in at least three years.

According to the city government, Can Tho International Airport was put into service in early 2011 with total capacity of 3-5 million customers per year, but the amount of customers only reached more than 550,000 in 2016 and is estimated at about 610,000 in 2017, accounting for 20% of the designed capacity.

Currently, the airport handles only four domestic flights, connecting Can Tho with Hanoi, Phu Quoc, Con Dao and Danang, and only one international flight between Can Tho and Taipei which is available during the Lunar New Year only.

November CPI up 0.13 percent: GSO

The Consumer Price Index (CPI) was up 0.13 percent over the previous month with the sharpest increase in traffic group hitting 0.68 percent because of petrol price hikes on November 4 and 20, reported the General Statistics Office of Vietnam (GSO).

The index was up 2.38 percent over December 2016 and 2.62 percent over the same period last year.

Medicine and health group increased 0.2 percent. Of these, health service raised 0.23 percent because two provinces raised the service's prices to those without health insurance cards.

Garment items, hats and footwear surged 0.15 percent. Food and restaurant soared 0.11 percent. Other goods and services moved up 0.14 percent.

During the first 11 months this year, the CPI hiked 3.61 percent compared to the same period last year.

Core inflation in November raised 0.06 percent over October and 1.28 percent over the same period last year. It was 1.42 percent year on year increase during the first 11 months this year.

VN & German agree cooperation in marine services

Hamburg delegation led by Senator Frank Horch, Minister of Economy, Transport and Innovation visited Vietnam Maritime Administration (Vinamarine), Vietnam Shipbuilding Industry Corporation (SBIC) and MOIT in Hanoi on November 27.

During this visit, Senator Horch witnessed the memorandum of understanding (MOU) signing ceremony between SBIC and Maritime Cluster North Germany for the future cooperation and technology transfer.

Other topics were also mentioned at the meeting including cooperation opportunities in marine services, port construction, logistics services, ship building technology and training & education. This visit created the hope to maximize the opportunity to exchange information, share ideas and enhance the business relationships between Vietnam and Germany.

Lotte to open second duty-free shop in Cam Ranh airport

Lotte Duty Free, the travel retail company of the Republic of Korea on November 27 announced that it will open the second duty-free shop in Cam Ranh airport next year.

According to the company, it has been granted permission, valid until 2028, to open a duty-free store at the new terminal of the Cam Ranh International Airport in the first half of 2018. 

The new store is hoped to earn revenue of up to 700 billion KRW (664 million USD) in the next 10 years.

Lotte Duty Free opened a similar store at Da Nang International Airport in early November, making it the first RoK duty-free retailer that has entered Vietnam’s market.

Lotte Duty Free is the travel retail arm of RoK conglomerate Lotte Group, with six duty-free stores in Vietnam, Indonesia, Japan, Thailand and Guam.

Nearly 11,000 new firms established in November

Close to 11,000 enterprises were established with a registered capital of 109.9 trillion VND (4.8 billion USD) in November, data of the Ministry of Planning and Investment revealed.

This was a decrease of 2.1 percent in the number of newly-established businesses and 7.8 percent in registered capital, as compared to the previous month.

Of these, the number of enterprises resuming their operation in November was 1,338, an increase of 0.7 percent against October.

Overall, in the first 11 months of this year, the total number of newly-established enterprises and businesses returning to operation was 140,394, with a total registered capital of 2.71 quadrillion VND.

The average registered capital for each business in the January – November period was 9.8 billion VND, a year-on-year increase of 24.3 percent, while the figure in November only was 10.1 billion VND, down 5.8 percent over the previous month.

The number of labourers in the newly-established enterprises was over one million people, down 8 percent against the same period last year.

In the past 11 months, the number of enterprises concentrated mainly in the fields of wholesale, retail, automobiles and motorbikes repairing was 41,627, accounting for 35.9 percent; the processing and manufacturing industry had 14,846 enterprises, making up 12.8 percent; the construction sector had 14,695 enterprises, or 12.7 per cent; and science, technology, consulting services, design and advertising had 8,663 new enterprises, equivalent to 7.5 percent of the total number.

Regarding registered capital, from January to November, the real estate sector had the highest registered capital of over 314 trillion VND, accounting for 27.8 percent, followed by wholesale, retail, automobiles and motorbikes repairing, worth more than 182 trillion VND, accounting for 16.1 percent, while the construction sector had a registered capital of 155.3 trillion VND, making up 13.7 percent.

VN projected to be growth outperformer among ASEAN nations     

Viet Nam and Myanmar will be the growth outperformers among ASEAN countries in the coming years, Fitch has forecast.

According to a report released by Fitch last Friday, Viet Nam’s growth will be supported by a stable political environment, growing reform momentum, an improving business environment, and with the manufacturing sector benefiting from multinationals relocating in Viet Nam for lower production costs.

Myanmar is also expected to grow 7.2 per cent on average per annum over the next 10 years due to an increase in investment, aided by improvement in the business environment and greater political stability, the report said.

Meanwhile, Singapore and Brunei that already have much higher gross domestic product per capita are likely to see much slower rates of expansion.

According to Fitch, Southeast Asian countries’ economic prospects look bright in the coming years, supported by greater regional integration, better transport connectivity and continued reform momentum.

Citing the Regional Comprehensive Economic Partnership and China’s Belt and Road Initiative as two key factors aside from ASEAN’s Economic Community, Fitch’s BMI Research said these elements will bring the region closer and fuel growth in the future.

Ha Giang attracts $706 million in investment     

The northernmost mountainous province of Ha Giang attracted VND16.1 trillion (US$706 million) worth of investment into 26 projects at a promotion conference on Monday.

Speaking at the Ha Giang Investment Promotion Conference, Prime Minister Nguyen Xuan Phuc praised the province’s socio-economic development achievements, such as poverty reduction by 5 per cent annually, growth of 7 per cent in gross regional domestic product, forest coverage of more than 55 per cent and contribution to the budget worth VND2 trillion, despite its disadvantageous geographical location.

Phuc also said he was impressed with the efforts of applying information and technology by local authorities, boosting e-commerce, tourism and preserving nature.

“Businesses play an important role in turning Ha Giang into a rich but sustainable province and accelerating tourism in the northwest region, as well as the entire tourism industry of Viet Nam,” Phuc said.

“What investors are doing today will not only contribute to enhancing the living standards of ethnic communities in Ha Giang but also lead to breakthroughs in the development of remote border areas.”

“Thus, Ha Giang will need more big investors,” Phuc said.

He said good business models and projects with inclusiveness and spillover effects, which provide jobs and stable incomes for local residents, should be targeted. This is key for the rise of the northwest region in general, and Ha Giang Province in particular, adding that the province had significant potential and competitive advantages in agriculture, medicinal plantation, tourism and border trade.

“Ha Giang Province must accompany business,” Phuc said, urging the development of a transparent and constructive government, cost-cutting for firms and improving overall competitiveness. Administrative reform must also be hastened together with improving land access for businesses, Phuc said.

Specially, Ha Giang should focus on boosting tourism through diversifying tourism products, developing community-based tourism, restoring and promoting traditional festivals and cultural values.

The province, which aims to become a key tourist attraction by 2020, has majestic mountain landscapes and a UNESCO-recognised global geological park, as well as 19 ethnic groups living together with attractive festivals, natural and cultural heritages. The number of tourist arrivals to the province has risen consistently, and is estimated to reach one million with a revenue of VND950 billion this year.

With famous specialties such as oranges, honey, tea and medicinal plants, Phuc urged the province to study policies to boost hi-tech and organic agricultural production together with building brands.

Nguyen Van Son, Chairman of the provincial People’s Committee said that the province was providing incentives to investments in border trade, agricultural production and tourism.

On the same day, Phuc had a working session with the provincial Standing Committee of the Party to tackle difficulties and create conditions for further socio-economic development.

He also visited Thanh Thuy International Border Gate

Yesterday afternoon, PM Phuc attended the ground breaking ceremony for dairy firm TH Truemilk’s cow breeding and hi-tech milk processing plant, worth VND2.5 trillion, in Vi Xuyen District’s Phong Quang Commune.

Phuc said that the project’s location in a remote area was important to socio-economic development and would bring benefits to local residents and contribute to the restructuring of the agricultural sector.

The project would have a capacity of raising 10,000 heads of cattle, together with a raw material plantation area of 663 hectares plus 2,000 hectares of local farmers. The plant would apply advanced farming and management technologies from Israel and New Zealand.

The project is expected to create jobs for 500 direct labourers and thousands of indirect labourers.

This is the first huge dairy farm and hi-tech milk processing project in the northern border provinces, which will have a radical impact on livestock farming in the region. 

Vietnamese confectionary giant attend FoodPro 2017 in Bangladesh

Excellent taste and eye-catching packages have made products of the Huu Nghi Confectionery Joint Stock Company come in favour of visitors at the International Exhibition & Conference on Food & Beverage Products, Processing, Packaging Machinery & Allied Technologies (FoodPro 2017).

The Huu Nghi company is among 250 enterprises from 16 countries attending the event which ran from November 23-25 in Dhaka capital, Bangladesh. 

The company brought along various kinds of cakes to the exhibition to introduce made-in-Vietnam products to international friends as well as grasp taste of consumers in Bangladesh. This is an important move that helps the confectioner to expand its export market to South Asia.

Visiting the company’s booth, Vietnamese Ambassador to Bangladesh Tran Van Khoa lauded its participation in the FoodPro while stressing that the Bangladesh market poses huge potential and challenges for Vietnamese confectionary products, thus Vietnamese businesses need to be plucky and make concerted efforts.

Chairman of the Bangladesh Agro-Processors’ Association (BAPA) AFM Fakhrul Islam Munshi said that he was impressed by Vietnamese confectionary products and expressed his hope that Vietnamese food companies will enhance investment and enlarge business in Bangladeshi market.

Attending the FoodPro 2017, the Huu Nghi company had chance to meet 100 food corporations from Bangladesh, opening opportunities for the company to boost exports to the South Asian country.

As part of efforts to support Vietnamese businesses to enter the Bangladeshi market, the Vietnamese Embassy in Bangladesh and the Bangladesh-Vietnam Chamber of Commerce and Industry will organise Vietnam-Bangladesh trade fair next year. The event is expected to help Vietnamese businesses meet their trade partners and nudge Vietnamese products closer to Bangladeshi consumers.

Outstanding farm products honoured

A total of 157 high-quality agricultural products and 25 outstanding companies were honoured at a ceremony held by the Vietnam Farmers’ Union in Hanoi on November 28.

Addressing at the ceremony, head of the Party Central Committee’s Economic Commission Nguyen Van Binh praised the individuals and organisations for their products honoured this time as well as the union’s initiative to launch the programme.

As Vietnam is integrating deeply into global economy with a slew of commitments to new generation agreements as well as bilateral and multilateral deals, Binh urged relevant ministries, localities and farmers to shake up the agricultural sector towards increasing added value, sustainable development and modern new style rural area building.

He stressed that farmers, cooperatives and businesses should promote science-technology application into agricultural production to ensure quality and hygiene of the products while participate in global and regional value chain to ensure national food security and improve rural livelihoods.

According to Chairman of the Vietnam Farmers’ Union Lai Xuan Mon, the programme was launched in all 63 provinces and cities, with 181 agricultural products being nominated.

The honoured products were categorised into three groups: farming products, processed products and products serving agriculture, he said.

He affirmed that the event, the fourth of its kind, not only honoured outstanding agricultural products but also served as a platform for individuals, organisations and businesses to cooperate and introduce products and advanced technology to the community.

Uber and Vietnam’s number one fintech firm shake hands on strategic alliance

Uber today officially became the strategic partner of Vietnam-based mobile electronic payment platform MoMo, with the intent of integrating a wholly digital payment experience into the leading ride-hailing online application.

Consequently, this alliance will likely deliver a never-before-seen transportation service by fusing taxi-hailing with a cashless payment method supported by Vietnam’s leading mobile e-wallet firm.

Prior to this co-operation with MoMo, Uber Vietnam offered three main payment methods: cash, credit card (including MasterCard and Visa) and debit card, as well as Android Pay exclusively for Android users.

Thanks to the participation of MoMo, from now on, Uber subscribers will be spared the hassle of connecting their existing banking accounts with the payment option in the digital application. MoMo’s e-wallet would enable synchronised payments and save a substantial amount of time for Uber’s customers.

Previously, on November 15, MoMo made a long-term commitment with taxi firm Vinasun to provide a smart and cashless taxi-riding experience.

Also on November 15, VietinBank officially shook hands with MoMo e-wallet to accelerate mobile transactions, especially for members of the domestic credit programme called E-Partner, which is now directly linked with MoMo.

Earlier, in 2015, MoMo partnered with Standard Chartered to launch the Straight2Bank wallet payment in Vietnam, which allows corporations, authorities, and organisations to conduct cashless transactions with either banked or unbanked individuals.

To date, MoMo electronic wallet could receive deposits from accounts at 11 banks and via international cards and can enable topping up at more than 5,000 MoMo transaction points within Vietnam’s territory.

MoMo is Vietnam’s top mobile e-wallet and over-the-counter remittance and payment platform. After a successful introduction in Vietnam, MoMo has made its way to overseas markets, such as the Philippines, Bangladesh, and Kenya. MoMo delivers virtual payment services, such as money transfer, bill payments, collection and disbursement, and mobile commerce.         

Grab commits to long-term investment in Vietnam

Grab co-founder Tan Hooi Ling affirmed that the ride-hailing firm would continue to invest in Vietnam and contribute to the country’s innovation process.

Ling told local press last week that Grab is specialised in researching and developing applications in technology-based platforms. Grab is always looking to partner with local governments to develop the most efficient transportation and mobile payments for Vietnamese customers.

With the development of a research and development (R&D) centre in Vietnam, Grab’s global R&D community will focus on solutions to optimise the efficiency of the transport sector. As a result, customers can have access to a wide range of vehicles with more convenient rides and affordable services. Meanwhile, Grab’s driver partners can utilise different services to serve customer demand and improve their own livelihoods.

Grab’s two-year pilot programme will be finished in January 2018. Regarding this matter, Ling expressed gratitude to the Vietnamese government. When the pilot project started two years ago, Vietnam was one of the first countries to adopt ride-hailing technology in such an open and transparent way. Grab is willing to share best practices based on data collected from the programme, which will facilitate innovation and new technology application in Vietnam.

To tackle traffic congestions, Grab plans to launch Grab Shuttle in the country to better utilise vehicle capacity. Grab Shuttle can increase the number of  passengers to seven people in a small bus. Grab Shuttle uses algorithms to arrange suitable routes for customers who are travelling at the same direction and at the same time. Following a local debut in Singapore, the government lauded Grab Shuttle’s effectiveness as well as encouraged the widespread use of the feature.

Meanwhile, JustGrab has been launched in Hanoi and Danang city, which combines both GrabTaxi and GrabCar in a single feature. JustGrab will offer faster e-hailing services for customers, while improve the livelihoods of driver partners.

The co-founder stated that Grab not only provides quick and safe rides to customers but also offers them better access to vehicles. The ride-hailing firm continues its efforts to develop sustainably in Vietnam.

According to Ling, Grab has been active in Vietnam’s 4.0 industrial revolution. With its technological solutions, the ride-hailing firm helps cut down customers’ commuting time by 51 per cent, while boost the hourly income of driver partners by 55 per cent compared to the national average.

“In addition to creating thousands of new jobs in Vietnam, Grab has invested in the new R&D centre so that local engineers and high-tech workers will be engaged in Grab’s global R&D community,” she added. Grab has invested in six R&D centres in Seattle (US), Beijing (China), Bangalore (India), Jakarta (Indonesia), Singapore, and Ho Chi Minh City. These R&D centres will explore new digital solutions to support Vietnam in developing its transport infrastructure.

To move Vietnam towards 4.0 in the long-term, Grab will expand investment in the country in the near future. The ride-hailing firm commits to doing the best for Vietnam and its people.

In the first ten months of 2017, Grab has contributed nearly VND140 billion ($6.16 million) to the Vietnamese state budget, according to Ling.

In addition to ride-hailing services, Grab plans to launch its mobile wallet payment system known as Grab Pay in Vietnam next year.

“Grab has been working in collaboration with several banks in Vietnam to promote online payment services to local customers. If Grab Pay is green-lighted in early 2018, it is expected to serve essential customer demand as well as contribute to develop Vietnam’s knowledge-based smart economy,” she said.

Hải Phòng hosts exhibition on energy saving

The International Exposition on Technologies and Products for Energy Saving and Environment Protection (E&E Expo Hải Phòng 2017) kicked off on Wednesday in the northern city of Hải Phòng.

The exhibition aims at introducing the achievements of technology development and energy saving solutions, promoting products, seeking partners to expand the production market and finding distribution agents for domestic and foreign enterprises.

It has attracted the participation of around 100 booths and outdoor display areas of domestic and international companies, introducing energy saving products, renewable energy, nuclear energy and household electrical appliances, as well as industrial equipment and environmentally friendly products.

In addition, the exhibition is also a space for businesses and experts to provide solutions on energy saving and environmental protection for daily life and business production, contributing to the propagation and raising of public awareness on economical and efficient use of energy for people, organisations and enterprises.

The event is held at Việt Nam - Czech Friendship Cultural Palace, Hải Phòng City and will run until December 2.

Work starts on large milk production project in Ha Giang

TH Group, the owner of  TH True Milk brand, on November 27 began work on a hi-tech project to farm dairy cows and process milk worth VND2.5 trillion (US$110 million) in the northern mountainous province of Ha Giang.

According to the Government news website, the project which will be developed in Vi Xuyen District will develop a herd of 10,000 cows and a material cultivation zone of 2,663 hectares. The project will help create jobs for 500 people working directly at TH Group’s project and thousands of others providing cows’ feed and other services.

This is the first time such a large milk production project has been developed in the area.

The most advanced farming technology of Israel and disease control solutions of New Zealand will be applied in the project.

Speaking at the groundbreaking ceremony, Prime Minister Nguyen Xuan Phuc showed his impression at the project, highlighting its significance to local socio-economic development and will help restructure the agriculture sector of the province.

Deputy PM: Counterfeit products prevention ineffective

Counterfeit goods still flood the market although authorities have launched many anti-counterfeiting programs over the past 10 years, according Deputy Prime Minister Truong Hoa Binh.

Addressing a ceremony to mark the 10th anniversary of Vietnam Anti-counterfeit Goods Day organized in HCMC on November 27, Binh said not only small enterprises but also large ones have been found producing and selling copycats to customers.

According to Phap Luat online newspaper, counterfeit products have eroded customer confidence in both Vietnamese enterprises and products. Therefore, there should be more drastic measures to tackle the selling and manufacturing of counterfeit goods.

The Deputy PM stressed that anti-counterfeit and market surveillance agencies should pay more attention to e-commerce and online shopping as a great source of copycats that has not been closely managed, in addition to traditional shopping channels.

Border forces should carefully check the origin and labels of goods at the borders, ensuring that counterfeit goods are detected before they are imported into the country.

Speaking at the ceremony, Nguyen Thanh Hai, deputy general director of Binh Minh Plastics JSC, said the company has faced lots of difficulties in protecting its brand and products due to the ineffective control of intellectual property infringements and counterfeit goods on the market.

“The flood of counterfeit goods has affected the reputation of enterprises and health of the customers,” Hai said.

Takimoto Koji, chief representative in Vietnam of the Japan External Trade Organization (JETRO), said many Japanese products had been counterfeited in Vietnam, affecting the production and reputation of Japanese manufacturers. Particularly, about 4,700 items imitating Honda products have been detected.

According to Le The Bao, chairman of the Vietnam Association for Anti-counterfeiting and Trademark Protection (VATAP), combating the selling and manufacturing of counterfeit goods requires the participation of the whole society, with heavy sanctions against violators.

The functional agencies must become reliable addresses for enterprises and people to contact and coordinate with in the fight against counterfeit goods and intellectual property rights infringements.

Online Friday 2017 kicks off     

Online Friday 2017, the largest annual event for the e-commerce business and consumer communities in Viet Nam, kicked off on Thursday evening in HCM City.

The event will go on for 24 hours via the official website www.onlinefriday.vn, from 0:00 to 24:00, on the first Friday of December, giving consumers the opportunity to buy quality products at special discounts.

Online Friday 2017 will attract the participation of manufacturers, goods and services suppliers, delivery enterprises and banks and organisations providing payment services, helping participating businesses strengthen their connection with partners and promote the development of the professional e-commerce supply chain.

Well-known businesses will participate, including Adayroi, Lazada, Shopee and Nagakawa, as well as Sunhouse, Anbico, Sendo and Leflair.

Customers can easily shop and interact with businesses through online and offline activities, and avail of many available surprise promotional offers. This year, the organisers will publish the products’ information, including producers’ listed price, current selling price in the market and promotional price during the Online Friday sale. The promotional programmes will ensure genuine products, price reduction and free shipping for customers.

The BigOFF event will also be held at Le Van Tam Park, HCM City, from December 1 to 3, with the participation of more than 100 booths from the top enterprises of Viet Nam.

The event is organised by the Viet Nam E-commerce and Information Technology Agency (Vecita) under the Ministry of Industry and Trade.

Online Friday, approved by the government, is an annual event being held since 2014.

Last year, the total sales of 30 large companies at Online Friday 2016, held on December 2, reached VND664 billion (US$28 million), tripling the sales of the previous year.