Experts gather at FPT Techday 2017     

Vietnamese artificial intelligence (AI) developers should focus on researching core issues, developing creativity and seeking breakthroughs to develop competitive applications, Nguyen Thanh Hung, Deputy Minister of Information and Communications, told nearly 700 programmers, IT technicians and experts at the FPT Techday 2017 on Tuesday in Ha Noi.

In addition, the Vietnamese technology community could take advantage of open AI platforms to apply it to life and solve problems such as environment, health, transportation and education, Hung said.

According to the Ministry of Information and Communications leader, the fourth industrial revolution was not just about the development of technology in the field of information technology.

It will be the wave of technological breakthroughs in various fields such as biotechnology, nanotechnology, renewable energy and artificial intelligence, which will be an important field among these, he noted.

Le Hong Viet, FPT’s chief technology officer, said that FPT Tech Day 2017 was organised to support the Vietnamese technology community updating and grasping the newest AI trends from leading global technology companies.

In addition, FPT was ready to share data and research results for Vietnamese technology community so that it can create and apply innovative products and applications based on AI technology, said Viet.

“We expect there will be Vietnamese AI applied not only in Viet Nam but globally in the future," he added.

Taking place from June 3 to June 6, FPT Techday 2017 is an event within the technology event series f.transform() of FPT, which also includes activities like Vietnam AI Hackathon and a signing ceremony on high quality human resources training with Viet Nam National University’s University of Science.

At the event, FPT also introduced the FPT.AI: an AI platform to help developers form automated interaction with end-users. The platform consists of two components, FPT.AI-Conversation Platform for natural language interfaces and FPT.AI – Speech for speech interfaces.

In addition, the winner of Vietnam AI Hackathon contest, which took place in June 3-4, was also awarded at the event. Team “Tim” from Ha Noi University of Science and Technology won the contest with an entertainment and art experiencing mobile app, which overcame 14 ideas in final round to win VND50 million (US$2,200) in cash and other prizes from sponsors. 

Hoa Phat to issue over 250 million shares     

Steelmaker Hoa Phat Group (HPG) plans to issue over 250 million shares to raise capital for investment in the second phase of Hoa Phat Dung Quat iron and steel production complex.

HPG will sell those shares at a price of VND20,000 (US$0.8) per share, expecting to earn more than VND5 trillion through the issue.

A part of the mobilised capital will be aimed at raising the company’s working capital.

The subscription period is projected to fall from June 27 to July 17 or will be notified by the Viet Nam Securities Depository (VSD) after Hoa Phat completes the list of shareholders purchasing the shares.

Hoa Phat Dung Quat iron and steel production complex has an annual capacity of four million tonnes of steel, of which two million tonnes are long steel and two million tonnes are hot rolled coils. The project is divided into two phases with fixed capital requirement of VND40 trillion.

The first phase was commenced in February, and the second phase is expected to start in August.

Hoa Phat Group Joint Stock Company is engaged in manufacturing and trading four main product groups, namely steel, other industrial products, real estate and agriculture. The company’s scale of operation is spread throughout the country but mainly in the North.

Steel has been one of the core products of HPG, since its inception. The company is one of Viet Nam’s leading steel producers, with an annual capacity of two million tonnes per year. 

SCIC sells stakes in 13 companies

     

The State Capital Investment Corporation (SCIC) has successfully sold its stakes in 13 companies in the first five months of this year to collect VND148 billion (US$6.5 million).

This was VND46 billion higher than their cost price.

In May alone, SCIC collected VND53 billion by selling stakes in five companies.

As of today, SCIC owns stakes in 141 enterprises with a total State capital worth more than VND18.9 trillion in book value out of the total charter capital of VND93.16 trillion.

SCIC will continue to focus on improving corporate governance and restructuring to enhance the operational efficiency of the firms in its portfolio.

The corporation reported a revenue of VND639 billion in the first quarter of this year, equivalent to 22 per cent of the revenue of the same period last year, with a pre-tax profit of VND584 billion.

This year, SCIC has targeted VND11.2 trillion in revenue and VND8.33 trillion in pre-tax profit.

Viet Ha to trade on UPCoM from Q3     

Beverage company Viet Ha Corporation will trade shares on the Unlisted Public Company Market (UPCoM) from the third quarter.

After its equitisation in January 2016, the company had a charter capital of VND769 billion (US$34 million). Of this, 51 per cent of the capital is held by Ha Noi People’s Committee, 24 per cent belongs to strategic investors, and the remaining 25 per cent is held by other investors.

In 2017, the company has set a revenue target of VND271 billion and an after-tax profit of VND6 billion. The business plan from 2017 to 2019 is VND57 billion, VND75 billion and VND65 billion, respectively. 

Changed taste boosts long-term G-bond trading

     

Trading of long-term Government bonds (G-bonds) in the first five months of 2017 has seen improvements compared to 2016 due to changing tastes of institutional investors.

The improvements include increasing bond maturity terms, the percentage of long-term bonds over total amount of bonds, which were successfully auctioned, is higher and all yield rates declined in comparison with 2016’s figures.

According to the Ha Noi Stock Exchange (HNX), investors have shown more interests in long-term G-bonds as the percentage of issued bonds, whose maturity is over 15 years, is equal to 45.8 per cent of the total amount of market’s bonds.

Since the beginning of 2017, the HNX has held 122 bond auctions, raising a total VND121 trillion (US$5.38 billion).

Of the issued G-bonds, the percentage of 15-year bonds is 17.5 per cent, of 20-year bonds is 10.4 per cent, and of 30-year bonds is 17.9 per cent.

After the first five months of 2016, the Government raised a total VND167 trillion from bond issuance with five-year bonds attracting investors’ interest, occupying nearly 70 per cent of total issued bonds.

The average maturity of G-bonds in the first five months is 13.8 years, an increase of 5.53 years from 2016’s number.

One of the reasons for the rise of long-term G-bonds, according to HNX, is high interest of insurance-finance companies, which are keen on long-term maturity.

There are three main factors for rising interests of insurance-finance companies in long-term G-bonds, local media reported.

The first is the improvement of Viet Nam’s economic outlook in the eyes of foreign investors with the US-based credit rating agency Fitch Ratings in May revising its outlook on Viet Nam’s long-term foreign and local currency issuer default ratings (IDR) to Positive from Stable and affirmed the ratings at "BB-".

Foreign investors have shown more interest in Viet Nam on its stable macroeconomic conditions, especially when the Government takes inflation and foreign exchange rates into its major concerns.

Inflation and foreign exchange rates are the two decisive elements that can determine the profits for foreign investors’ G-bond investments as the two factors move opposite to the yield of G-bonds.

Secondly, G-bonds have become a safe haven for both investment funds to keep their portfolios balanced and secure with the inclusion of both companies’ stocks and other assets, especially when the number of investment funds in Viet Nam is on the rise to grasp new opportunities on the local securities market, including the derivatives market that is expected to come into operation in June.

Thirdly, the annual yield rates for 20-30 year G-bonds are now ranging between 7.6 per cent and 7.9 per cent, higher than the yearly Open Market Operations (OMO) interest rates, which stay around 5 per cent, offering better interests for investors.

TAC targets VND4.4 trillion in revenue in 2017     

Cooking oil producer Tuong An Vegetable Oil Joint Stock Company (TAC) targets to gain revenue of nearly VND4.4 trillion in fiscal year 2017.

At the annual shareholders’ meeting on Wednesday in HCM City, the company said it would aim for before-tax profit of VND165 billion in 2017 and dividends of 16 per cent.

To reach the target, the company will strengthen their management ability.

TAC reached revenue of VND4 trillion for fiscal year 2016, a year-on-year increase of 11 per cent. This result represented 106 per cent of the annual target.

The before-tax profit last year was VND84 billion, equivalent to 103 per cent of the annual target.

Last year was a significant one for TAC as it officially became a member of the food producer KIDO Group.

TAC, established in 1977, has two manufacturers, which are equipped with modern technologies imported from the EU, Japan and the US.

The plant in Vinh City in the central province of Nghe An covers 37,000sq.metres, while the one at Phu My Port is 80,000sq.m, with a capacity of 810 tonnes per day. 

TPBank gets nod to open new sites     

Tien Phong Joint Stock Commercial Bank (TPBank) has received approval from the State Bank of Viet Nam to open new sites in eight cities and provinces in 2017.

Besides the approval to open a representative office in HCM City, TPBank is also allowed to open five branches and four transaction offices in Kien Giang, Bac Ninh, Nam Dinh, Quang Ninh, Nghe An, Binh Duong and Dong Nai.

According to current regulations, besides earning profits, complying with the central bank’s regulations on operational safety, and having non-performing loans of less than 3 per cent of the total outstanding loans, the minimum capital requirement for opening a new branch and transaction office in Ha Noi and HCM City is VND300 billion, and VND50 billion in other cities and provinces.

Experts said that the enlargement of the network was indispensable for banks during the ongoing increased competition. With the opening of new sites, it is easier for banks to attract depositors and borrowers, they said.

With the deployment of LiveBank models widely in early 2017, TPBank is the first bank in Viet Nam to apply this auto banking technology.

TPBank’s LiveBank is a new bank model used around the world. Some countries and territories such as Germany, Japan, Turkey, and Hong Kong (China) already use it. Singapore is the only one in Southeast Asia that uses this bank model.

TBBank has targeted a total asset of VND130 trillion and profit of VND780 billion for 2017.

Interest rates in inter-bank market drop for fifth week     

Liquidity in the banking system has been positive as interest rates in the inter-bank market dropped for the fifth consecutive week.

Reports from the Bao Viet Securities Company showed that overnight and one-month rates slid by 43 percentage points to 2.27 per cent and 2.47 per cent in the week ending June 2.

During the week, the central bank made a net withdrawal of VND499 billion (US$21.89 million) via the open market operations.

Thanks to the good liquidity, demands for loans in the inter-bank markets declined sharply.

Nguyễn Đức Hùng Linh, analysis director of the Saigon Securities Incorporation, said that the liquidity has been improved significantly, contributing to reducing interest rates.

Interest rates for dong short-term deposits quoted at commercial banks have inched down by roughly 10 percentage points, Linh said.

However, he said, the rates for longer term deposits have been unchanged as banks’ demand for the loans has remained high to meet the central bank’s regulations on capital adequacy ratio.      

Vasco offers discounted airfares for university exam candidates     

Vietnam Air Services Company (VASCO), subsidiary of national flag carrier Vietnam Airlines Corporation, has launched a promotional campaign for all candidates taking the university entrance examination 2017, the company said on June 1.

Under the programme, VASCO has offered candidates a 40 per cent discount on round-trip fares on all flight routes from June 2 to 20.

Each candidate will get one discounted round-trip ticket. When purchasing tickets, candidates must present their identity card or their student card, together with the exam notification paper and exam admit card, to buy air tickets at discounted rates.

VASCO has been officially authorised by the Vietnam Airlines Corporation to operate flights on HCM City-Ca Mau, HCM City-Rach Gia, HCM City-Con Dao and Con Dao-Can Tho-Phu Quoc routes, as well as Ha Noi-Dien Bien, Ha Noi-Dong Hoi, Ha Noi-Vinh and Vinh-Da Nang routes. 

VNA increases flights on HN-Chu Lai, HN-Pleiku routes     

Vietnam Airlines will increase three flights per week on the Ha Noi-Chu Lai and Ha Noi-Pleiku routes from June 15.

This brings the total number of flights to seven per week on each route.

The flights are operated by A321 aircraft, with four-star quality services, departing from Ha Noi at 7am and from Chu Lai at 9:10am on the Ha Noi-Chu Lai route.

On the Ha Noi-Pleiku route, the flights will depart from Ha Noi at 6:30am and from Pleiku at 8:50am, suitable for business and leisure trips.

Vietnam Airlines is offering promotional prices of VND399,000 (US$18) one way on the Ha Noi-Chu Lai route and VND599,000 one way on the Ha Noi-Pleiku route.

Tickets will be sold from June 3, 2017 to June 15, 2017, and are applicable for departure from June 15, 2017 to August 31, 2017.

The above rates do not include taxes, fees and charges. Tickets are available at ticket offices, official Vietnam Airlines agents and on the website.

Passengers can get more information at www.vietnamairlines.com or contact customer service number 1900 1100. 

CJ Cầu Tre Food JSC strives for $73m revenue     

CJ Cau Tre Food Joint Stock Co has set a target of generating VND2 trillion (US$73 million) in revenue in the next three years, the company said in its statement on Thursday.

To this end, the company will expand its investment scale in Viet Nam and accelerate exports with initial targets in Southeast Asian markets.

Top priority will be also given to developing the skilled personnel resource in the food sector, upgrading production facilities and improving quality of food products to win the trust of customers, the company said.

Besides this, the company plans to develop a complex with food processing and research and development (R&D) facilities, along with conducting food safety research in the country, in a move to provide customers with safe and quality products.

Owned by CJ CheilJedang Corporation, a subsidiary of the South Korean CJ Group, and the State-owned Saigon Trading Corporation (Satra), the company’s name was changed from the previous Cau Tre Export Goods Processing JSC.

CJ CheilJedang Corporation is currently the company’s the largest shareholder, holding 71.6 per cent of its stake.

No plan to hike power tariff: MoIT     

The Government is not considering a hike in power tariffs, said Do Thang Hai, deputy minister of Industry and Trade (MoIT).

Hai told the National Assembly session on Saturday that electricity and petroleum are key items that affect all sectors, production and people’s lives. So any change in the rate of these items, especially a price hike, should be calculated carefully, he said.

If the Electricity of Viet Nam (EVN), which is under the MoIT, proposes a tariff hike, the ministry will review the proposal thoroughly before submitting it to the Prime Minister for approval.

“The Government has instructed that the retail price of electricity should not be increased this year because of difficulties in the economy,” Hai said. “If EVN proposes a hike, the ministry will carefully assess its impact on other products as well as its effect on economic growth and the consumer price index (CPI).”

Earlier, the Government had asked the ministry to instruct EVN to complete reports on its overall production, business, costs and retail prices in 2016, as well as its plans for 2017. Based on these reports, EVN will propose a power price mechanism this year.

Deputy Prime Minister Vuong Dinh Hue has asked the national power company to propose tariffs based on actual production costs this year. The move aims to ensure that EVN makes profits, create favourable conditions to attract investment in renewable energy, and curb inflation at the same time.

According to the General Statistics Office, if power tariff increases by 3 per cent, it will raise CPI by 0.081 per cent. The CPI will rise by 0.189 per cent and 0.243 per cent if the retail electricity price rises by 5 and 7 per cent, respectively.

EVN calculations show that its total production cost in 2017 is expected to increase to VND7.2 trillion (US$316.7 million) because of the fluctuation in coal, gas and oil prices. Input costs, especially of coal, have been increasing continuously since 2015, but they have not been incorporated into the power tariff. Coal prices, which have risen 7 per cent since December 2016, account for around VND4.7 trillion of the total spending.

In addition, the consumption of electricity has been growing rapidly, at 12 to 13 per cent a year, putting pressure on the power sector.

The last hike in power tariff was two years ago when prices went up by 7.5 per cent to an average retail price of VND1,622 per kWh.

Thai budget carrier launches daily Da Nang-Bangkok route     

Thai budget carrier AirAsia has launched a new route between the central city of Da Nang and Bangkok, Thailand seven days a week, starting from June 9th.

The city’s tourism promotion centre said it’s the third airline operating the Bangkok-Da Nang route after Bangkok Airways and Vietnam Airlines.

Daily flights will depart from Da Nang at 12pm and arrive in Bangkok at 1.20pm, while the flights from Bangkok will depart at 10.10am and arrive in Da Nang at 11.30am.

AirAsia began offering a Kuala Lumpur-Da Nang route, with four weekly direct flights, in 2014.

According to the centre, the new route would offer more chances for tourists traveling between Viet Nam’s central region and Bangkok.

Last year, Bangkok Airways operated four flights per week with 144 Economy class seats on an Airbus 319.

In 2014, local travel firm Viettravel also offered direct charter flights between the city and Bangkok on Thai Vietjet.

According to the city, import-export turnover between Thailand and Da Nang reached US$30.2 million, of which $28.5 million were exports from Thailand.

Thailand has only had one investment project in the city so far with total value of $10,000.

The city hosted a mere 24,000 tourists from Thailand – 1.4 per cent of total foreign tourists visiting the city – in 2016.

Da Nang has hosted the annual East-West Corridor Trade Fair since 2007, which attracted businesses from Thailand, Myanmar, Laos and Viet Nam.

The city, which is situated at the end of the East-West Economic Corridor – linking Myanmar, Thailand, Laos and Viet Nam, is connected by 25 international routes with over 5.6 million tourists in 2016.     

FECON inks co-operation agreement with Japanese expressway companies     

Two Japanese expressway companies will transfer their technology and management capacity in transport infrastructure to Viet Nam’s Foundation Engineering and Underground Construction Joint Stock Company (FECON).

The move is part of a strategic co-operation agreement on investment and development of transport infrastructure projects in Viet Nam signed between representatives of Japanese companies East Nippon Expressway Company (NEXCO) and Expressway International Company Limited (JEXWAY), and leaders of FECON and its subsidiary FECON Infrastructure JSC (FCI) in Tokyo today.

The signing ceremony was witnessed by Prime Minister Nguyen Xuan Phuc and his Japanese counterpart Shinzo Abe at the investment promotion forum during Phuc’s visit to Japan from June 4 to June 8.

Under the agreement, NEXCO and JEXWAY will also connect FECON with other Japanese investors and partners, as well as create opportunities for investment in transport infrastructure in other countries in the region.

In the first phase of co-operation, the two Japanese companies will buy 20 per cent stake owned by FECON in its BOT (build-operate-transfer) project that includes a bypass road on National Highway No 1 at Phu Ly town and reinforcement works at Km215+775-Km235+885 of the northern province of Ha Nam.

NEXCO and JEXWAY will take part in managing and operating the project, as well as applying their experience and advanced management technology to this project.

The two Japanese companies are the first foreign businesses participating in the BOT transport sector in Viet Nam.

Miyaike, chairman and CEO of NEXCO, said the signing of the agreement and purchase of the stake marked the start of partnership co-operation with Vietnamese potential companies, such as FECON and FCI, as well as its official participation in a project in Viet Nam.

Miyaike also committed that NEXCO would co-operate with FECON to conduct researches on expressway projects in the country.

Pham Viet Khoa, chairman of FECON, said the participation of NEXCO and JEXWAY in Phu Ly bypass road project would make a great contribution to its success and bring about Japan’s scientific operation and exploitation method to Viet Nam.

The Phu Ly bypass road project was kicked off in 2014 and completed in 2016. The 43-km project had more than VND2.04 trillion (US$89.6 million) investment through a joint venture among FECON, Cotec Construction Joint-Stock Company (Coteccons) and Civil Engineering Construction Corporation 1 (Cienco 1) with ownership of 40 per cent, 35 per cent and 25 per cent, respectively. 

VIAC encourages alternative dispute resolutions     

The Vietnam International Arbitration Centre (VIAC) organised a workshop on Tuesday with the International Finance Corporation (IFC) to promote the use of alternative dispute resolution (ADR) methods in the banking and finance sector.

The conference, named ‘Benefits and Challenges of Using ADR for Banking Disputes’, focused on the principles, conditions and procedures of commercial mediation as an ADR method, as well as the conditions for establishment of mediation centres in Viet Nam and the implementation of Decree 22 on commercial mediation, which has been in effect since April 15, 2017.

According to the decree, the settlement of disputes via trade reconciliation must ensure the principle of voluntarism and equality in terms of rights and duties between parties to the disputes who participate in reconciliation, said Nguyen Thi Mai, Deputy Head of the Justice Support Department.

In recent years, global banks and financial institutions have considered many ADR methods like Meditation and Arbitration as an effective way to solve disagreements. According to Tran Huu Huynh, VIAC’s Chairman, this trend arose due to the need for a customised dispute resolution mechanism for the financial sector which must also ensure efficiency and promptness.

Truong Thanh Duc, Chairman of the Legal Club Bank of the Vietnam Bank Association, agreed with Huynh, saying that on average, a financial or credit dispute takes the litigation court two to three years to reach a final ruling. An arbitration court should take only five to six months. And even at a normally higher legal fee, arbitration methods have proved more effective and specialised than the traditional court, particularly in cases involving foreign entities.

Nina Mocheva, a World Bank Dispute Resolution Specialist, said at the conference that World Bank had been working closely with Viet Nam and the VIAC since 2013, and that they are deeply impressed by the country’s arbitration modernisation.

However, Mocheva also raised her concern over the temporary lack of legal framework and practical application of ADR methods in Viet Nam.

In response to Mocheva’s insight, Mai suggested a number of possible improvements, such as the Supreme People’s Court of Vietnam taking responsibility in encouraging firms and organisations working in the financial dispute resolution field to popularise ADR methods, and the Ministry of Justice proactively completing an absolute and uniform trade dispute resolution legal framework. She was also in favour of involved parties solving disputes through negotiation and appeasement before taking matters to court. 

Similar to arbitration, commercial mediation is only applicable when concerned parties have entered a mediation agreement before or after the dispute has arisen, or at any point during the dispute resolution process.

The conference included two discussion panels in which representatives from commercial banks, credit organisations and legal firms discussed the future of ADR methods in Viet Nam with the speakers.

Michael Hwang, member of the Chartered Institute of Arbitrators, proposed a comprehensive approach to ADR, with trade mediation support from both the Vietnamese government and courts.

Hwang recommended ADR methods in commercial arbitration on the ground of both parties being able to employ lawyers of choice, which proves effective for both financial institutions and financial service users.

At the conference, VIAC’s Deputy Secretary General Phan Trong Dat also introduced a model arbitration clause reserved for the banking and credit sectors, divided into two categories for credit contracts and contracts of guarantee in order to cover all credit activities.

Investment inflows into Binh Dinh rise in five months

     

Domestic and foreign investment inflows into the central province of Binh Dinh Province surged in the first five months of this year, according to the provincial Department of Planning and Investment.

In the reviewed period, the province lured 47 domestic projects with a total registered capital of VND12.24 trillion (US$538 million), 12 projects more than those attracted in the same period last year, the department director Nguyen Thuc Dinh said.

Among the large-scale projects included a residence-trade-service complex valued at VND1.39 trillion and Cam Van new residence area capitalised at VND421 billion.

In the period between January and May, the locality also received six foreign-invested projects with a total capital of $92 million, up three projects compared with the same period last year.

Two projects with large registered capital were a Japanese-invested solar and wind power project worth $64 million, and a $21.2 million pig-breeding farm project being financed by Seldat Viet Nam Co.

By the end of the year, Binh Dinh will continue to accelerate investment promotion to attract more investment capital, especially in its Nhon Hoi Economic Zone and other zones, chairman of the provincial People’s Committee Ho Quoc Dung said.

The province will carry out activities to study and assess its potential to attract foreign and domestic partners while building database and documents for investment promotion.

It will also focus on advertising its investment environment and opportunities, and support local investors and businesses to participate in investment promotion forums, both in Viet Nam and other countries such as Japan, South Korea, Singapore, Thailand, the US and the EU, Dung said. 

HCM City and Gia Lai cooperate in industry and trade     

HCM City and the Central Highlands province of Gia Lai on Tuesday signed a cooperation agreement in industry and trade between the two localities that will extend between this year and 2020.

The ageement is expected to unleash the potential of each locality, contributing to socio-economic development through full cooperation in industry and trade.

Under the agreement, HCM City and Gia Lai Province will exchange information and practical experiences as well as improve State management of industry and trade in the two localities.

The localities will implement the market stabilisation programme, and update and share market information as well as resolve any problems related to fluctuations in the market.

They will also offer support to enterprises to invest in infrastructure projects in industrial zones and clusters, and help them resolve their challenges.

HCM City and Gia Lai will work to implement the supply-demand connection programmes, and promote trade and support enterprises to participate in trade fairs in the city and trade fairs in rural areas.

The two localities will also cooperate in setting up a chain of diverse agricultural products, livestock and poultry, from production to consumption.

The goal is to promote farm produce such as livestock and poultry products from Gia Lai Province in the HCM City market.

The localities will also strengthen inspection of goods transported between the two localities, and fight smuggling and trade fraud as well as ensure food safety and promote primary processing at the source.

The localities will also cooperate in human resource training, improve the management capacity in the trade and industry sector as well as apply e-commerce in production and business.

In addition, the city and the province will work with other localities to develop four key industries (food processing, chemicals; rubber – plastics; mechanical engineering and electronics; and information and technology), and the support industry.

Bui Khac Quang, director of Gia Lai Province’s Department of Industry and Trade, said HCM City is a large and important market for Gia Lai.

The province wants to improve connections between the two areas so that quality farm produce from Gia Lai such as vegetables, fruits and beef can be brought to the market in HCM City.

Quang also suggested the city’s Department of Industry and Trade will encourage enterprises to join the conference on supply-demand in Gia Lai Province to be held in September.

He also called for businesses in HCM City to invest in infrastructure development projects in the province.

Vietnamese businesses enhance e-commerce strategy for sustainable development     

More than 200 business owners were trained on how to develop their e-commerce strategy for sustainable development in Viet Nam at a seminar on Wednesday in HCM City.

The seminar, entitled “E-Commerce Trends and Legal Issues”, was jointly organised by the Vietnam Internet Association (VIA) and Adpex JSC with support of the Ministry of Industry and Trade, Ministry of Science and Technology, and Ministry of Information and communications.

“Viet Nam e-commerce has grown rapidly in the last 10 years but the market size is not large and the transaction scale is rather small,” Vu Hoang Lien, President of Viet Nam Internet Association said.

Lien said that retailers needed to invest in marketing and online sales, improve delivery services, and integrate online payment on their website. Businesses also needed to keep up with the latest e-commerce trends to stay competitive.

“Particularly, building brand reputation and credibility is the pre-requisite to enhance business competitiveness. For e-commerce businesses, choosing the right domain name is the first step to build a trustworthy online presence, thereby, ensures business success,” said Lien.

Experts said that there were still obstacles that prevent the sustainable development of e-commerce which were trusted by consumers in terms of the quality of goods, services they bought online, and the security for online payment.

“A strong online presence requires a successful website with the right domain name. Especially for businesses with global vision, .com has always been trusted thanks to its availability, credibility and high stability for more than 18 years,” Hoc Nguyen from P.A Vietnam said.

At the event, experts from various IT related fields such as Microsoft, IM Group, VNG, P.A Vietnam, Verisign brought business opportunities to understand the situations to adjust business strategies in a timely fashion in line with technological and digital changes, legal issues in e-commerce and updates on new payment methods.

According to Nielsen, Viet Nam is leading the world in terms of the number of people who love technological products. A survey result in 2016 showed that 90 per cent of urban residents use smartphones and their average Internet access time per week was 24.7 hours, which was only lower than that of Singapore.

The growth rate of e-commerce in the retail sector will reach about 20 per cent per year and by 2020 will be about $10 billion. However, e-commerce in the retail sector is rising faster and is expected to grow at 25 per cent in 2017, according to the Government’s e-commerce developing plan from 2016 to 2020. 

VN exporters updated on US import regulations     

Viet Nam’s food and beverage exports to the US are growing and likely to do so for many years, but manufacturers need to be aware of that country’s requirements, an American expert told a seminar in HCM City on June 7.

David Lennarz, vice president of legal consultancy firm Registrar Corp, said: “We would like to explain current US Food and Drug Administration regulations as well as provide an update on the new FDA Food Safety Modernisation Act, and how the law will affect exports to the US.”

To prevent, prepare for and respond to bio-terrorism and other public health emergencies, the US passed the Public Health Security and Bioterrorism Preparedness and Response Act in 2002. The act requires registration of domestic food facilities, and foreign facilities must designate a US agent.

Under the 2011 Food Safety Modernisation Act, registration of a food facility must be renewed every even-numbered year. “Facilities must consent to FDA inspection, and failure to renew results in invalidated registration,” Lennarz said.

“The FDA removed thousands of food facility registrations that were not properly renewed in 2017 from its registration database on February 1, and Vietnamese registration has decreased by 45 per cent to 806 in 2017. Vietnamese manufacturers do not fully understand US import regulations,” he explained.

Lennarz also updated the seminar on the Food Canning Establishment Registration, New Nutrition Labeling Requirements, Foreign Supplier Verification Programme and Food safety Modernisation Act.

Viet Nam is the US’s 16th biggest trade partner, with bilateral trade growing at around 20 per cent annually.

This year, as of the end of April, Viet Nam’s exports to the US were worth $12.4 billion, 20 per cent of its total exports and 8.7 per cent higher year-on-year.

The major products included seafood, garment and textile, footwear, wood and furniture, computers, electronic accessories and products, and agricultural products. 

Vietjet Air offers 800,000 ‘zero fare’ tickets

The low cost airline Vietjet Air has announced it will offer 800,000 super cheap fares, priced from 0VND, to meet the travel demands in peak seasons.

Travellers can purchase ‘zero-fare’ tickets during three days from June  6 to 9, within the golden hours from 12pm to 14pm at www.vietjetair.com. 

The promotional campaign is applied for all international and domestic routes from August 1 to December 31 (except on Lunar New Year and holidays).

Additionally, the airline will offer five flights every week and provide each flight with five free tickets for a group of five people. The program applies to optional journeys when travellers participate in the game online ‘Free summer-Fly for Free’.

From now till June 15, passengers who purchase online tickets and make successful payment within the foresaid golden hours will have an opportunity to receive interesting gifts such as mobile cards and discount vouchers. 

Vietnam’s five-month tea export sees strong growth

Vietnam exported 48,000 tonnes of tea in the first five months of this year, raking in US$73 million, representing year-on-year increases of 14.3% in volume and 12.4% in value.

In May alone, export volume was estimated at 10,000 tonnes with turnover of US$17 million, according to the Ministry of Agriculture and Rural Development.

However, the tea price for export in the last five months decreased 3.8% compared to the same period last year, to US$1,452 per tonne on average.

India was the top consumption market of Vietnamese tea in the period, with export volume to the market increasing 11.6 times year-on-year.

It was followed by Poland, the United Arab Emirates (UAE), Taiwan (China) and Russia, with respective rises of 93.6%, 77.5%, 44.3% and 17.5%. 

However, exports to Pakistan, the biggest market of Vietnam’s tea with 25.5 percent of the market share, decreased by 1.4% in volume and 6.3 percent in value compared to the same period last year. 

The Vietnam Tea Association (VITAS) predicted that the country’s export volume in 2017 will increase by about 10% from 2016. 

Vietnam exports tea to 110 countries and territories worldwide, with the Vietnamese tea brand registered for protection in 70 countries and regions. 

Vietnam’s key tea export markets are Afghanistan, Indonesia, Russia, Pakistan, Taiwan (China), the US, China, the UK and the UAE. 

Vietnam mainly exports black tea, accounting for about 78 percent of total tea exports. 

According to Nguyen Huu Tai, President of the VITAS, Vietnam has great potential to expand production of “Shan Tuyet” tea, which is hoped to become a key tea product for export soon. 

Vietnam is the world's seventh largest tea producer and among the top five tea exporters. However, the country ships mainly material tea and low-value tea products. 

Experts said Vietnam should look to export high-value tea products instead, adding that the State needs to change management institutions to support tea producers and exporters.

Ho Chi Minh City transport dept wants to block Uber

Authorities in Ho Chi Minh City have suggested banning Uber as the ride-hailing service is not included in the city’s pilot plan on electronic contracts for passenger transport.

The municipal Department of Transport has submitted a letter to the People’s Committee asking to temporarily shut down the activities of Uber Vietnam as the firm is not allowed to join a pilot program on managing passenger transport service via electronic contracts in 2017.

The pilot scheme has already included Grab Vietnam, along with V.Car and MCar, which are managed by two of Vietnam’s major taxi operators, Vinasun Corporation and Mai Linh Group, respectively.

The short-term ban on Uber is meant to control the number of cabs operating under electronic contracts during the pilot phase, thus better managing the city’s plan to improve local taxi services.

According to the transport department, Uber has not fully complied with the Vietnamese law on business during its operations in Ho Chi Minh City since 2014.

The agency had several times sent a document to ask the company to follow the regulations, but the effort was neglected.

Such wrongful operation has compromised the local business environment and affected other passenger transport firms such as Grab, V.Car, and others, the department said.

Uber has been quite notorious in Vietnam for being the only mobile application-based transport company to persistently duck business registration and tax obligations.

A representative from the Ho Chi Minh City Department of Taxation told Tuoi Tre (Youth) newspaper in late May that the firm had only paid tax for itself and its drivers since October 2016.

Meanwhile, its other tax duties since 2014 had yet to be fulfilled despite continuous requests from local authorities, the representative added.

Earlier this year, local Uber drivers  complained about having between 15 and 25 percent of their earnings end up in the company’s pocket.

Shrimp, coffee, ginseng added to national products list

Prime Minister Nguyen Xuan Phuc recently signed a decision to add three more products - brackish water shrimp, high-quality coffee and ginseng - to the list of national products.

Now, these three products will receive support under the National Product Development Programme by 2020. Brackish water shrimp includes tiger prawn and white-leg shrimp.

The PM has asked the concerned ministries to join hands with local authorities and propose incentive policies for each of these products.

Vietnam aims to earn 10 billion USD from shrimp exports by 2025 and 5-6 billion USD by 2030 from coffee exports.

Recently, the Government approved a national project worth 9 trillion VND (395 million USD) to develop farming and brand for Ngoc Linh ginseng by 2030.

Approved in 2010, the goal of the National Product Development Programme by 2020 is to develop specific products under the Made-in-Vietnam brand that have high competitiveness and will benefit the country, and to promote technology upgradation for their production.

In 2012, the PM had approved a list of national products, which included six official products and three reserve products. Products on this list get incentives in term of credit, taxes, land use, trade promotion and market expansion.

Japan gives ODA loans to Hoa Lac project

The Japan International Cooperation Agency (JICA) has signed an official development assistance (ODA) loan agreement worth 12.865 billion JPY (117.8 million USD) for the Hoa Lac Science and Technology City Development Project.

Under the project, basic infrastructure will be built for an integrated science and industrial technology centre named Hoa Lac High-Tech Park (HHTP).

The park will provide research, development, education and training in the Hoa Lac area on the outskirts of Hanoi.

The project will also promote human resource education and advanced science and technology at the centre.

Previously, Japan provided 15.218 billion JPY for the first ODA loan for this project in March 2012.

Vietnam has increased its budget for science and technology each year, but a large gap separates the country from advanced ASEAN nations.

It still persists in terms of science and technology indicators issued by international agencies.

Experts said that building a collaborative system for research institutions, educational institutions and industry while promoting advanced and practical technological development will be the key to address these issues.

JICA’s policy is to implement projects that address development issues in Vietnam and offer coordination for JICA’s various types of assistance, which include Japanese ODA loans, technical cooperation and grant aid.

The HHTP, approved in 1998, is the first and the largest hi-tech facility in Vietnam with total area of 1,586 ha. The park is located along Hanoi’s Thang Long Boulevard, convenient for transport links to Noi Bai International Airport and Hai Phong deep-sea port. It is expected to become a model science city and a national hub for technology development and application.

Ministry prepares measures to support Vietnamese workers in Qatar

The Ministry of Labour, War Invalids and Social Affairs has prepared measures to support Vietnamese workers in Qatar.

Deputy Minister Doan Mau Diep on June 7 told the press that after receiving information on the political crisis in Qatar, the ministry has directed its Department of Overseas Labour to request agencies sending workers to report the working addresses of contractors receiving labourers to provide assistance when needed.

The ministry also ordered relevant agencies to keep a close watch on developments in Qatar and prepare necessary measures to support Vietnamese workers.

Nearly 1,800 Vietnamese people work in Qatar under dispatch contracts.

11 years of Law on Intellectual Property enforcement in Vietnam

Since it came into force 11 years ago, the Law on Intellectual Property and related legal documents have supported innovation, use and protection of intellectual property.

The law has encouraged healthy competition and promoted foreign investment and technological transfer in Vietnam.

The Law on Intellectual Property came into force on July 1st, 2006, and was revised in 2009. Since the law took effect, IP applications have increased on an annual basis. 

From 2006 to 2015, the Copyright Office of Vietnam at the Ministry of Culture, Sports and Tourism granted 43,000 certificates of copyright and related rights. 

The National Office of Intellectual Property received more than 400,000 applications on intellectual property rights for trademarks and issued nearly 232,000 protection certificates. 

Le Ngoc Lam, Deputy Director of the National Office of Intellectual Property of the Ministry of Science and Technology, said, “After 10 years of enforcement, many organizations, individuals, enterprises, research institutes, and universities have been well aware of intellectual property rights. They know how to take advantage of IP rights to create, apply and protect their IPs both at home and in overseas markets."

"As a result, they have strengthened their foothold in the market. The number of applications has increased 10% or 15% since the law took effect,“ she added.

Protecting and exercising IP rights have ensured fairness, promoted creativity, and created equal trade mechanisms. Violations of IP rights have also been settled by the Inspectorate of the Ministry of Science and technology. 

Pham Van Toan, Deputy Director of the Inspectorate of the Ministry of science and technology said, “The handling of violations of IP rights has been done at the request of rights owner. To protect their IP rights, rights owners must submit request to relevant agencies. Over the past few years, we have dealt with fake goods which are the main violation of IP rights.”

Realizing the Law on IP will help enterprises protect their rights at home and abroad. Enterprises have also registered for IP rights protection in their overseas markets.

US FDA warns about hepatitis A in frozen tuna from Vietnam

The US Food and Drug Administration has issued a warning to consumers in three states about hepatitis A found in certain frozen tuna products originating from a processor located in Vietnam.

On May 1, the Hawaii Department of Health originally notified the US Food and Drug Administration that one or more frozen ahi tuna cube samples from PT Deho Canning Co., imported by Hilo Fish Company in Hilo, Hawaii, tested positive for hepatitis A. 

Then, in mid-May, Hilo Fish began recalling additional frozen tuna steaks and frozen yellowfin tuna cubs from Sustainable Seafood Company in Vietnam and Santa Cruz Seafood, Inc. in the Philippines, over concerns about hepatitis A.

“The initially recalled product has been removed from circulation and the newly recalled frozen tuna lots were not shipped to Hawaii, but were shipped to the mainland US,” the FDA said in a notice.

“While the Centers for Disease Control is not currently aware of any illnesses linked to these products, it is advising post-exposure prophylaxis (PEP) for unvaccinated persons who may have consumed the potentially-contaminated tuna within the past two weeks,” the FDA said.

The frozen tuna was shipped to restaurants and retailers in Texas, Oklahoma and California. The restaurants in California that received the possibly tainted food include Galaxy Foods Inc. in Rancho Palos Verdes, Doubletree in Claremont, Poke Shack in San Francisco, and Bonito Poke in San Francisco.

FDA said it is working with Hilo and other distributors to ensure they remove the potentially contaminated product from the market.

Sustainable Seafood Company is in district of Cam Lam in Khanh Hoa Province and specializes in processing and exporting fish: fresh and frozen tuna (yellow fin & big eye), barramundi, mahi mahi and opakapaka.

Agriculture ministry to hold tra fish fair in Hanoi in October

The Ministry of Agriculture and Rural Development plans to organize a fair for Vietnam’s tra fish (pangasius) and seafood in Hanoi in October in an effort to promote their sales in the country’s northern market, and expand exports, especially to China.

China is a large buyer of Vietnamese seafood products, especially tra fish. Statistics of the agriculture ministry show Vietnam shipped seafood products worth around US$2.8 billion to the northern neighbor in the first five months of the year, a year-on-year rise of over 10%.

China overtook the US as the largest importer of Vietnamese pangasius fish in the first quarter of the year, according to the Vietnam Association of Seafood Exporters and Producers.

The period saw tra fish exports to the Chinese market soaring a hefty 57% year-on-year to around US$70 million. On the contrary, revenue from tra fish shipments to the US declined by over 24% to US$61 million.

The association says the export of tra fish products has been hindered by a recent smear campaign against their quality on the European Union market.

Therefore, the ministry considers the upcoming fair as a way to promote the image of local tra fish products abroad, thereby bolstering the sector’s export growth.

The association predicts the export turnover of Vietnam’s seafood products will be around US$7.4 billion this year, up 6% year-on-year.

Local seafood companies have boosted their tra fish exports to China. As a result, the local price of tra fish has remained high, at VND24,000-26,000 a kilo, in the Mekong Delta, according to the ministry.

Farmers in the area harvested around 466,000 tons of tra fish in January-May, a year-on-year increase of over 11%.

French Decathlon starts Vietnamese retail chain

French retailer Decathlon just announced that it is waiting for the approval from the Ho Chi Minh City People’s Committee to set up a 5,000-square metre supermarket at Rach Chiec National Sport Complex in District 2.

This first Decathlon supermarket is only the start for a series of 50 supermarkets nationwide in Vietnam, according to Decathlon’s general director Lionel Adenot.

At a meeting with Nguyen Thi Thu, Deputy Chairman of the Ho Chi Minh City People’s Committee, Adenot said that Decathlon’s long-term strategy in Vietnam was to expand its current activities from manufacturing and distribution to developing a chain of supermarkets.

Decathlon is a group which specialises in the manufacturing and distribution of sports equipment. The firm has been present in Vietnam since 1995, and the country is now the second-largest manufacturing base for the corporation, with more than 200 million products every year, creating jobs for 75,000 labourers and 300 white-collar staff.

According to Adenot, the incoming supermarket will combine a space for retail with a free “playground” for customers’ sporting activities.

The Vietnamese retail market has seen increasing interest from foreign investors recently. Before Decathlon, Sweden’s Hennes &Mauritz (H&M) also announced that it will open its first outlet in Hanoi in 2017. Meanwhile, Zara from Spain opened its first outlet last year, joining its competitors US-based Gap and compatriot Mango.

Japanese investors have also joined the Vietnamese retail market, with famous brand name Aeon that opened a chain of supermarkets in Hanoi and Ho Chi Minh City.

Takashimaya, another giant, opened its first shopping centre in Ho Chi Minh City last year. According to Tatsuo Yano, managing director of Takashimaya Singapore, the Ho Chi Minh City unit was the third overseas department store for the Group.

“This development has come about through years of cultivated retail experience between Japan and Singapore. We aim to create a store that will become a sought-after shopping destination for customers in Ho Chi Minh City,” Yano said.

“The retail store expansion in global markets, mainly the Southeast Asian countries, is an integral part of our development strategy,” he added.

Meanwhile, Korea’s Lotte Group is planning to increase its number of 13 supermarkets in Vietnam to 60 by 2020.

According to the latest report issued by The Economist Intelligence Unit (EIU) earlier this year, a large number of foreign investors are showing interest in the Vietnamese retail market.

EIU forecast that foreign companies will continue expanding their business activities in the coming years. The country’s retail sector receives increasing attention as it posted a strong growth of 13 per cent per year in 2012-2016, according to EIU.

The report also forecasts local consumer spending to rise sharply in the next five years, as Vietnam has a population of around 94 million people, one-third of whom are aged under 35 years.

According to EIU, per capita spending—an important figure for retail growth—will rise from $1,450 last year to $1,840 in 2021.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR