Local workers contribute US$4.8 million to State budget

In 2015, public workers in Ho Chi Minh City contributed US$4.8 million to the State budget from more than 10,000 scientific research and technology initiatives.

The statistics were released at a meeting in the city on January 10 to review activities of the municipal Labor Union and receive the Labor Hero title.

Last year, Ho Chi Minh City’s Labor Union at all levels worked closely with enterprises to implement various programs to take care of the city’s workers.

Seventy four houses worth nearly US$2.9 million were presented to disadvantaged workers while 4,900 jobs were introduced to unemployed laborers.

24,300 workers suffering from irremediable diseases or labor accidents also received proper assistance.

2016 Business Startup Festival launched

More than 400 young people and students joined the 2016 Business Startup Festival hosted by the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi on January 9.

The event is intended to inspire entrepreneurship spirit among the youth and promote business startup business activities through training classes, workshops and exchanges.

It also aims to seek new practical business initiatives. Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce and Industry said, “Vietnam’s future depends on efforts of the younger generation. We are ready to accompany you along the path to uphold the Vietnamese entrepreneurship spirit. Through this program, we want to encourage you to start up your business and inspire you to bring into play your strong will and creativity."

Over the past 13 years, the Business Startup Program has attracted thousands of young people with nearly 3,000 business projects and initiatives. Many of them have contributed practically to national development.

Aviation industry asked for greater development

Deputy Prime Minister Hoang Trung Hai requested Vietnam's aviation industry to create breakthroughs in building and upgrading airports in a bid to name it in the top four in ASEAN.

Speaking at a ceremony in Hanoi on January 10 to look back the development of the sector over the last 60 years, the Deputy PM said the industry made crucial contributions to the national construction and development.

He praised efforts of the sector in ensuring flight safety and security, especially preventing serious accidents and problems from happening, stressing that this is vital for both the sector and the nation.

The industry needs to continue promote its gained achievements and overcome shortcomings and limitations to perfect itself in the coming time, Hai said.

He asked the sector to concentrate on reviewing and adjusting plans, bettering transport-related law and policy system, accelerating restructuring, and mobilising extra-budgetary resources in order to promote its development in the future.

Together with developing a young and modern fleet, the sector should reduce airfares, improve service quality and international competitive capacity and expand domestic and international routes, he noted.

In addition to its business development task, the Vietnam civil aviation industry needs to ensure its role as a reserve force for national defence and national sovereignty protection, he added.

General Director of the Civil Aviation Authority of Vietnam (CAAV) Lai Xuan Thanh reported that the industry has gained strong growth in recent years, transporting 40.1 million passengers and 741,000 tonnes of cargo by 2015, up 13.7 percent and 10 percent a year, respectively.

The country’s airlines including Vietnam Airlines, Jestar Pacific Airlines, Vietnam Air Services Company (VASCO) and VietJet Air boast 125 aircraft operating on 48 domestic routes. Together with 52 foreign airlines, they are running 95 international routes.

Vietnamese carriers account for 47.9 percent and 11.6 percent of market shares of international passenger and cargo transport.

The sector earmarked around 55 trillion VND (2.475 billion USD) for building and upgrading airport infrastructure, equivalent to 38.5 percent of the sector’s total investment.

The move has helped meet the development demand of domestic and international aviation transport markets, remarkably contributing to ensuring national defence-security and economic development, and increasing the position of the Vietnamese aviation industry in the international arena, Thanh stressed.

Regarding international integration, the industry signed 67 bilateral agreements on aviation transport and six multilateral ones, while actively joining in the ASEAN aviation market .

It also strictly obeys international regulations and meets all requirements of the international Civil Aviation Organisation (ICAO).

At the ceremony, on behalf of the Party and State, National Assembly Vice Chairwoman Nguyen Thi Kim Ngan granted the Labour Order, first class, to the CAAV.

The Civil Aviation Authority of Vietnam was established on January 15, 1956 under Decree No.666/TTg by Prime Minister Pham Van Dong, laying a foundation for sustainable development of the sector.-

Sime Darby sets up Vietnamese subsidiary

Malaysian Sime Darby Bhd, seller of 30 different brands of vehicles across Asia, recently established a unit in Vietnam to retail cars and spares.

Among the brands sold by Sime Darby are Rolls Royce, Hyundai, Ford and Land Rover.

The company's unit Euro Auto has secured approval from Vietnamese authorities to incorporate its 90 percent-owned Performance Motors Vietnam Joint Stock Company, which mainly sells vehicles and spare parts, Sime Darby said in a stock exchange filing.

The Vietnam Automobile Manufacturers' Association said vehicle sales rose 58 percent year on year in the first 10 months of 2015 to 163,855 units, making the country one of the fastest growing automotive markets in Asia.

Sime Darby has been selling MINI – and BMW-branded luxury vehicles in Vietnam through its Euro Auto unit since 2007 and owns showrooms in HCM City and three outlets in Hanoi.

The incorporation of Performance Motors Vietnam is not expected to have a material effect on the earnings or net assets of Sime Darby for the financial year ending June 30, the company added.-

Vietjet promotion offers 400,000 international tickets

Vietjet will give away 400,000 promotional tickets, starting at zero dong, in a bid to meet passengers' surging demand for travel, the airline said.

As part of the airline's well-known "It is time to Vietjet" promotion, the giveaway will run from January 14 to 16.

The promotion will apply to all Vietjet passengers flying on its international routes to Seoul, Taipei, Singapore, Bangkok and Yangon between February 1 and December 31 (excluding public holidays).

Earlier, Vietjet Air announced to add over 800 flights, starting from January 20 to February 20 to meet travel demand during Lunar New Year 2016.

Major flight routes to be increased include Ho Chi Minh City-Hanoi (30 return routes a day), Ho Chi Minh City-Da Nang (13 return routes a day), Ho Chi Minh City-Hai Phong (seven return routes a day), and Ho Chi Minh City-Vinh (six return routes a day).

Vietjet said it was planning faster expansion this year, which would result in further domestic market share gains and a larger international network.

Ford Vietnam sales hit record high

Ford Vietnam recently announced its sales in December last year rose 60 percent year-on-year to 2,634 vehicles, bringing the total cars sold in 2015 to the best-ever record of 20,740 units, up 48 percent against the previous year.

According to the company’s General Director Pham Van Dung, the gigantic achievement was driven by continued strong demand for Ford’s full line-up of vehicles in Vietnam.

Since being launched in Vietnam in last August, the new version of Ford Ranger has showed its strength as a multipurpose body, helping push its December sales up 89 percent to 1,374 units.

The 2015 sales of Ranger hit 8,685 units, a year-on-year rise of 81 percent.

The EcoSport compact SUV was one of the trademark’s leading vehicle with 422 units sold in December, raising the total sales in 2015 to 3,977, up 145 percent against 2014.

Meanwhile, Ford Transit continued leading the commercial car segment with 640 units sold in December, up 102 percent year-on-year, bringing the total sales in 2015 to 5,600 units.

Thua Thien-Hue targets higher economic growth in 2016

The central province of Thua Thien-Hue is aiming for a 9% growth in gross domestic product (GDP) and an average GDP per capita at US$2,100  in 2016.

The province has designated 2016 as the Year of Enterprises, hoping to see 650 new enterprises with a total registered capital of VND3 trillion (roughly US$133 million) coming into operation during the year.

Chairman of the provincial People’s Committee Nguyen Van Cao said in order to fulfill the targets, the province will prioritise the construction of the road linking Hue city and Thuan An town to tap the area’s potential and advantages for tourism, service and maritime economic development.

The locality will also boost industrial production by pouring investment in infrastructure in economic and industrial zones, transport system and seaports, he said.

The Chan May-Lang Co Economic Zone’s Management Board will be merged with the Management Board of Industrial Parks to raise their operation efficiency.

At the same time, Thua Thien-Hue will accelerate investment promotion via connections with major groups to join the global value chain, the official added.

To fully tap its strengths in tourism and services, Thua Thien-Hue will realise the project on establishing the provincial tourism department in the first quarter of this year, and revamp the management model of the Hue Relic Conservation Centre.

In 2016, the central province experts to welcome from 3.1-3.3 million tourists, of whom 1.3-1.5 million are foreigners.

The locality aims to earn up to US$3.2-3.3 trillion (US$144-148 million) from the no-smoke industry, a year-on-year rise of 10-12%, raising the tourism-service sector’s contribution to the provincial GDP to about 55.3%.

Agriculture growth set at 3.5%

Agricultural GDP growth has been targeted at 3-3.5 per cent for this year, with annual production value to rise 3.5 to 4 per cent and export turnover of agriculture and forest products to reach $31 billion and $39 to $40 billion by 2020.

The targets were announced at a conference studying the sector’s performance in 2015 and setting tasks for 2016, held by the Ministry of Agriculture and Rural Development (MARD) on January 5.

2015 was a difficult year for the sector as a whole, the conference heard, due to challenges posed by climate and markets. With efforts of many fronts, however, agriculture maintained its growth momentum and ten items recorded export turnover in excess of $1 billion: rice, coffee, rubber, fish, shrimp, cashew nuts, pepper, vegetables, cassava, and furniture.

Despite difficulties in the 2011-2015 period the sector achieved its growth targets and met increasing demand for domestic consumption and export, raising incomes and improving living conditions for the country’s rural population, Minister of Agriculture Rural Development Cao Duc Phat told the conference.

GDP growth in the sector from 2011-2015 was 3.13 per cent, exceeding the target of before 2.8 per cent. Average production value increased 3.68 per cent per year, with export turnover of agricultural and forestry products in 2015 being estimated at $30.14 billion.

Regarding development from 2016-2020, Minister Phat said that the overall objectives have been defined as building comprehensive and sustainable agricultural development towards modernization, large production scale, creating high value-add, and meeting diverse domestic demand and promoting exports.

MARD has previously proposed a draft decree on policies to encourage foreign investment in the agriculture sector.

There are four fields where foreign investments is encouraged: production and development of crop varieties and animal breeds, production of auxiliary materials, full processing of agriculture, forestry and fishery products, and production of veterinary medicine and plant protection products.

Development plans designed for SMEs

A workshop on the development of small and medium-sized enterprises (SMEs) from 2016 to 2020 was held by the Ministry of Planning and Investment (MPI) on January 6.

The workshop heard that SMEs contribute 31 per cent of State budget revenue and 35 per cent of capital investment, while providing more than 5 million jobs and accounting for nearly half of the country’s annual economic growth.

On the last five years there had been programs in place supporting businesses in general but no specific development plans for SMEs. These support programs are disjointed, having been designed by different ministries and have therefore been able to provide convenient access to SMEs, Deputy Minister of Planning and Investment Dang Huy Dong told the gathering.

Mr. To Hoai Nam, Deputy Chairman of the Vietnam SME Association, emphasized that the process should be reassessed and redesigned based on the actual needs for the development of SMEs, in order to support them practically and efficiently.

“Ninety-nine per cent of SMEs do not aim at becoming giants,” he said. “They only need proper policies to develop sustainably.”

The SME sector still has various limitations to overcome, such as a lack of financial capacity, production space, information, and human resources. These factors lie behind competitive weaknesses, especially at a time when Vietnam is promoting regional and international integration.

Support programs that do not meet targets are therefore not only cause a waste of resources but result in SMEs losing opportunities to enhance their capacity.

The Enterprise Development Agency under the MPI forecasts there will be 450,000 additional SMEs by 2020, bringing the total to 750,000, and they will employ half of the country’s workforce.

Deputy Minister Dong said that policies and plans designed to support enterprises should encourage creativity and innovation in order develop special or even unique products with high added value and, consequently, enable SME to compete in the domestic as well as foreign markets, with a focus on exports.

He also revealed that approximately VND3 trillion ($133 million) will be spent on specific assistance programs.

Thaco led vehicle sales in 2015

The Truong Hai Auto Corporation (Thaco) sold 80,421 motor vehicles in 2015, a 90 per cent increase compared to 2014, and was the leading seller in the domestic market, surpassing major competitors such as Toyota Vietnam.

It had set a sales target of 70,000 at its annual general meeting last April, which was labeled by industry insiders as overly ambitious given it sold only 42,300 in 2014 and Toyota had sold 40,020.

Sales of Kia were 21,310, Mazda 20,359, and Peugeot 544, for a total of 42,213, double 2014’s result.

Since January 1, Kia, Mazda, and Peugeot vehicles have been subject to a special consumption tax, but Thaco said it will not increase the sales price during the month to observe customer behavior.

Thaco’s main business lines are the manufacture, assembly, trade, distribution, and maintenance of passenger cars, trucks, and buses, the supply of spare parts, and real estate investment and development. It has 70 motor vehicle showrooms nationwide.

EVN's 3-year profit just $1.55 million

Electricity of Vietnam (EVN) recorded revenue of VND2 trillion ($89.04 million) in the 2012-2015 period, for profit of a mere VND35 billion ($1.55 million), according its business report. The profit result falls well short of the target and is low for a group of its size.

It has said that in the future it will only focus on the electricity business and so has divested from its interests in non-electricity sectors such as real estate, banking, insurance, and securities.

In the 2012-2015 period EVN divested and cut its capital in seven companies, totaling VND1.993 trillion ($88.7 million).

There are six companies where EVN has fully divested all of its capital: the Vietnam Electricity Investment and Construction Joint Stock Company, the Saigon Vina Land Joint Stock Company, the Central Power Real Estate Joint Stock Company, the An Binh Securities Joint Stock Company, the An Binh Commercial Joint Stock Bank (ABBank), and the Global Insurance Company (GIC).

It is still to divest all of its capital in the EVN Finance Joint Stock Company (EVN FINANCE).

EVN reported that, in 2014, electricity produced and purchased reached 142.25 billion kWh, a 10.76 per cent increase against 2013. Commercial electricity stood at 128.43 billion kWh, 10 per cent higher than in 2013.

Of this, electricity for industry accounted for 53.9 per cent, a 13.59 per cent increase, and electricity for business, services, and consumption increased around 44.4 per cent. Revenue from electricity sales was estimated at VND196.37 billion ($9.16 million), 13.57 per cent higher than in 2013.

UK seeking Fintech partners in Vietnam

A delegation of seven leading UK Fintech companies will be in Vietnam from January 11 to 15 seeking cooperation in technology to provide financial services, known as Fintech, according to the British Embassy in Hanoi.

The companies are Byoot Capital, Earthport, Korala Associates, PayPoint, The Floow, Misys International Financial Systems, and State Street.

“They offer a range of technologies that could revolutionize ways of raising finance, making payments, and analyzing risk,” the Embassy’s announcement said. Over 50 Vietnamese companies will be involved in the visit, where there will be opportunities to share expertise and explore what Fintech offers the future of finance at seminars in Hanoi and Ho Chi Minh City.

The development of the Fintech industry was a spoken of as a top priority during Prime Minister David Cameron’s visit to Vietnam last July. Two British firms - Dragon Capital and Standard Chartered Bank Vietnam - have sponsored and launched the Vietnam Fintech Club.

The UK, a world leader in new types of technology in financial services and one of the world’s largest financial centers, is looking to embrace the Vietnamese market because the country is well placed to quickly adapt, benefit from, and develop financial technologies.

“Vietnam is also ripe for new entrants,” the announcement said. In Vietnam, e-commerce currently forms only 1 per cent of the retail market compared to 8 per cent in China. Things are changing rapidly, however. Two years ago Vietnam was the smallest Business-to-Customer e-commerce market in Southeast Asia but online trade is gaining momentum given the high internet penetration and greater online spending per shopper.

With 23 million smartphones and 55 million mobile phone subscribers, Vietnam benefits from large demographic advantages with a major proportion of the population growing up in the digital era.

Hapro falls short of revenue target

The Hanoi Trade Corporation (Hapro) earned revenue of VND5.77 trillion ($256.47 million) in 2015, 95 per cent of the target and equal to 105 per cent of its revenue in 2014, according to its 2015 business report.

Export revenue was VND3.453 trillion ($153.48 million), accounting 60 per cent of the total and 91 per cent of its target, and was 110 per cent of 2014’s result. Domestic revenue was VND2.317 trillion ($102.99 million).

Total import and export turnover was $162 million. Import turnover was $8.5 million, equal to 80 per cent of the figure recorded in 2014.

Its export result was pleasing, according to the report. Traditional key markets have been Japan, the US, and the EU, but last year it also penetrated into new markets such as Spain, Africa, Eastern Europe, and Singapore. Goods recording stable business growth included cashew nuts, pepper, and clothing.

Hapro also revealed its progress in equitizing six of its subsidiaries. Three are now joint stock companies, two have conducted an IPO, and one is preparing for its IPO.

In 2016 Hapro targets earning revenue of VND6.032 trillion ($268.122 million), a 5 per cent increase compared to 2015. 2016 import and export turnover are expected at $160 million and $11.5 million, respectively.

To achieve its targets it has adopted three key strategies: focusing all resources on accelerating export activities; restructuring its business methods, improving the quality of its human resources, and expanding domestic markets; and maximizing all financial resources and infrastructure.

Fine regime introduced for multi-level marketing

Illegal multi-level marketing (MLM) may be subject to fines of VND100 million ($4,400) under new Decree No. 124/2015/ND-CP from the government, supplementing the provisions for administrative sanctions in the trade and manufacture of fake or banned goods to protect the interests of consumers, which took effect on January 5.

Fines from VND30 million ($1,320) to VND50 million ($2,220) will be imposed on businesses conducting MLM without being properly licensed. Fines will double if the violation occurs in more than two central-level cities or provinces.

MLM participants paid commissions, bonuses and other economic benefits in one year that exceed 40 per cent of revenue they create will be fined from VND20 million ($880) to VND30 million ($1,320).

The government previously asked the Ministry of Industry and Trade (MoIT) to work with related ministries and localities to inspect the operations of MLM organizations around the country.

According to the Vietnam Competition Authority under MoIT, the MLM model appeared in Vietnam in the late 1990s. By 2004 there were 20 companies operating in the field. In the early years in Vietnam MLM activities took place absent of any legal framework.

Since being recognized and regulated in 2004, the MLM industry has flourished, with the advent of numerous businesses. As at 2013 there were more than 100 enterprises registered in the field with more than 1 million participants.

More preferential loans for HCMC enterprises

Seventeen banks committed to provide enterprises in Ho Chi Minh City with almost VND212 trillion ($9.43 billion) in preferential loans on January 8 under a program to connect banks and the city’s enterprises.

The Ho Chi Minh City branch of the State Bank of Vietnam (SBV) said the loans will be used to support small- and medium-sized enterprises (SMEs) and also industry in the city. The interest rate on mid-term loans will not exceed 7 per cent per annum and be from 8 to 10 per cent on long-term loans.

The program has been conducted for four years under the guidance of the Ho Chi Minh City’s People’s Committee, the City’s branch of the SBV, the Ho Chi Minh City Department of Industry and Trade, and related agencies.

Last year the People’s Committee targeted providing VND60 trillion ($2.67 billion) via the program to local enterprises, but the program grew to over VND173.18 trillion ($7.71 billion).

Deputy SBV Governor Nguyen Phuoc Thanh said that almost all enterprises taking out preferential loans have the capacity to repay and bad debts will not be incurred.

Capital flows will therefore circulate and help SMEs to access capital at suitable interest rates at a time when they have struggled to borrow funds due to their limited financial capacity.

SSI on top at HoSe

The Ho Chi Minh City Stock Exchange (HoSE) has released details of the market share held by brokerage firms in the fourth quarter of 2015 and for the year as a whole.

In the stock and treasury bill market, Saigon Securities Inc. (SSI) retained its lead with a share of 12.92 per cent at HoSE in the fourth quarter, followed by the Ho Chi Minh Securities Company (HSC) with 12.45 per cent, and the Vietnam Capital Securities Company (VCSC) with 9.91 per cent.

Notably, the KIS Securities Corporation (KIS) climbed from tenth position to eighth in the fourth quarter, with a market share of 4.21 per cent. FPT fell from eighth to tenth, with a 3.9 per cent share. Bao Viet Securities Company (BVSC), meanwhile, slipped out of the Top 10, having held ninth spot, replaced by BIDV Securities Company (BSC) with 4.11 per cent.

In the bond market the Techcom Securities Company (TCBS) lead the way in the fourth quarter, holding a market share of 52.96 per cent, followed by BSC with 19.87 per cent.

For the year as a whole SSI lead the pack in the stock and treasury bill market with 13.07 per cent), followed by HSC with 11.97 per cent and VCSC 8.39 per cent.

SSI also led the bond market, holding 33.37 per cent of the market share, with TCBS holding 26.04 per cent and BVSC 12.15 per cent.

Hanoi retail space more affordable

In addition to aggressive expansion plans by local and foreign retailers in Vietnam in 2015, one of the most noticeable trends was “affordability”, according to CBRE’s Hanoi Q4 2015 Review, released on January 6.

“The emergence of new ‘bazaars’, ‘outlets’, and low price supermarkets are all reinforcing the trend where consumers demand better value for money,” said Ms. Nguyen Hoai An, Associate Director at CBRE Vietnam.

Two new retail centers - Vincom Nguyen Chi Thanh and Aeon Mall Long Bien - were officially opened in the capital during the fourth quarter of 2015, adding a total of 152,500 sq m of gross floor area (GFA) (with 106,500 sq m net lettable area - NLA) to the market.

Both projects opened with high occupancy rates of more than 95 per cent. Aeon Mall Long Bien features a variety of entertainment facilities for different ages, including a cinema, an entertainment area for teenagers, a large-scale indoor playground for kids, and a number of dining options.

Vincom Nguyen Chi Thanh incorporates specialized fashion and cosmetic areas, a supermarket, F&B options, furniture stores, and a cinema. The two projects are “all- in-one” destinations for customers to combine shopping, entertainment, and dining.

Average vacancies at Hanoi’s retail centers fell from 15.2 per cent in the third quarter of 2015 to 10.7 per cent in the fourth quarter, thanks to high occupancy rates at recently opened projects and existing properties remaining stable.

In terms of rents, the CBD saw no significant change while non-CBD areas witnessed a slight increase of 3.7 per cent quarter-on-quarter, as rentals at Vincom Nguyen Chi Thanh were higher than the market average for such locations.

Food & Beverage outlets recorded the strongest growth during 2015 and will continue to dominate the market in 2016. CBRE Vietnam reported that nearly 50 per cent of its enquiries for retail space belonged to the sector and that the enquiries were more for fast casual dining than high-end dining.

In 2016 new shopping centers will become affordable, targeting the middle class, so rentals may not be as high as those in the past.

Vingroup will continue to lead the market share of retail space with several upcoming projects, though all are outside of the CBD.

In the near future other projects developed by foreign players, including Gamuda and Ciputra, may offer rentals at market average levels or lower, also due to their non-prime locations.

Local retail developers are more and more aware of the importance of anchor tenants and have therefore begun looking for foreign anchor retailers to fill up retail space.

However, large leasing areas combined with strong negotiation power tends to help anchor tenants secure incentive rentals that are much lower than those offered to other tenants, according to the report.

“Turnover sharing schemes, in which landlords can share part of the operational risk with tenants, have been attractive for many retailers, particularly those who want to open additional stores in a new shopping center,” Ms. An added.

FTA affects actively to Vietnam’s leather footwear industry

According to the Vietnam Leather, Footwear and Handbag Association (LEFASO), Vietnamese leather and footwear industry reached at US$ 14, 5 billion on export last year when the above Free Trade Agreement (FTAs) take effect.

Free Trade Agreement (FTA) was signed soon that is predicted to open up golden opportunities and provide new boosts for Vietnam’s leather and footwear companies to develop in both scale and quality in 2016.

The United States, Europe Union (EU) and Japan still are major export traditional markets to Vietnam. Especially, Vietnam exported products of sport shoes, canvas shoes and leather footwears to China reached at US$ 600 million in 2015.

Currently, most of domestic and foreign enterprises have a tendency towards production in rural areas to take advantage of labor source and expand production scale. At present, enterprises from Japan and Taiwan (China) have invested into building the large scale factories.

It was note that Vietnam is pushing up negotiations of some trade agreements, including the Trans-Pacific Strategic Partnership Agreement (TPP), the Vietnam - EU Free Trade Agreement and the Free Trade Agreements will affect strongly to Vietnamese leather- footwear industry development.

Rapid growth expected to make Vietjet country’s biggest domestic carrier

Private low-cost carrier Vietjet has been expanding its local market segment fast and is expected to overtake Vietnam Airlines in domestic market in a couple months, according to new analysis.

Sydney-based CAPA Center for Aviation which provides independent aviation market intelligence, analysis and data services forecasts that Vietjet will see 7% increase in domestic capacity in the first quarter to 259,000 seats a week in March, up 73% year-on-year.

The increase will allow it to take over the national carrier Vietnam Airlines’ leading position in domestic market for the first time.

The latter holds 47% of the market at the end of 2015 when Vietjet holds 36.3%, according to the Civil Aviation Authority of Vietnam. Their market shares sometimes got close to being even last year with each around 40%.

CAPA said Vietjet’s share is going to grow to 43% of the market in March while Vietnam Airlines’ shrink to 42%.

Vietjet’s share may well grow to 50% this year, making it the country’s biggest domestic carrier, it said.

Jetstar Pacific and VASCO held respective market shares of 14.9 and 1.8% in November 2015, according to official figures.

Vietjet’s domestic capacity at the end of 2015 has increased 82% from a year before to 242,000 seats a week and the capacity on overseas services increased 30% to 19,000 seats a week.

Its top ten domestic routes increased 29-200% in number of passengers between the last week of 2015 and the last week of 2014, according to CAPA statistics.

Vietjet, which started operation in December 2011, has been pursuing domestic expansion to meet the rapid growth in demand.

The airline launched services connecting Hanoi and Ho Chi Minh City with the Central Highlands’ town Pleiku, its 16th domestic destination, on October 1.

It has announced to open flights between Pleiku and the northern city of Hai Phong on January 15, between Pleiku and the central town of Vinh on January 16 and flights between Ho Chi Minh City and the south central town of Tuy Hoa on January 20.

Flight debuts usually come with big promotions that offer millions of cheap and free tickets.

The airline will also increase the frequency of high-demand routes during the upcoming Tet to more than 20 round trips per day for the Ho Chi Minh City - Hanoi route, 10 round trips per day for the Ho Chi Minh City - Da Nang route, four round trips per day each for the Ho Chi Minh City - Hue and Ho Chi Minh City - Vinh routes, six round trips per day for the Ho Chi Minh City - Hai Phong route and three for the Ho Chi Minh City - Nha Trang route.

Lunar New Year holiday, which peaks this February 8, is a high season for air travel in Vietnam as it is the time of family reunions and it is when most people have the longest break of the year.

WB: Let private sector help Vietnam’s transport and logistics

Vietnam’s evolving economy needs new strategies to maintain strong growth, and a World Bank report calls for the government to work with private sector importers, exporters and transport companies to improve freight logistics.

Titled Engaging the Private Sector in Transport and Logistics Planning and Policy Making: Options for Vietnam, the report says systematic engagement with freight stakeholders by government agencies responsible for planning and policy making can boost trade competitiveness.

International experience has shown that private sector stakeholders — the end-users of transport infrastructure and key intended beneficiaries of public policies aimed at facilitating trade and reducing logistics costs — are well-positioned to inform public sector decisionmaking on matching supply and demand in transport and logistics, according to the report.

In Vietnam, however, private sector stakeholders remain relatively untapped as a source of insight into transport and logistics policy making and planning, the report says.

“By more explicitly, transparently, and predictably engaging with private sector stakeholders all across the import-export and domestic supply chain, national agencies like the Ministry of Transport and subnational ones like Provincial Departments of Transport can better equip Vietnam with the logistics system it needs as it enters its next phase of logistics competitiveness as a middle-income country,” said Luis C. Blancas, a World Bank Senior Transport Specialist and author of the report.

Malaysia, Thailand, the US and the UK — among the world’s top-performing countries in transport and logistics according to the World Bank’s Logistics Performance Index benchmark — have considerable experience in engaging private sector stakeholders in planning and policy making to help public sector agencies support strong logistics outcomes. Such experience elsewhere provides lessons learned and pitfalls to avoid for Vietnam.

In the past, private sector freight stakeholders in Vietnam have worked with government agencies on efforts to facilitate trade, rather than longer-term aspects like infrastructure planning and crafting policies to promote desirable sector-wide outcomes such as better service delivery, healthier market competition and cutting greenhouse gas emissions that cause climate change.

The World Bank report contends increased public-private engagement can greatly enhance logistics competitiveness in those areas going forward. It suggests establishing legally backed platforms for public-private and public-public collaboration, and furnishing such partnerships with sufficient resources to carry out their mandate. Other important steps include managing private sector expectations, ensuring comprehensive representation of stakeholders across the supply chain, and observing common-sense “business meeting” norms regarding timeliness and the prompt issuance of minutes with clearly assigned responsibilities and well-defined next steps.

In addition, the report calls for pursuing private sector engagement opportunities throughout the planning and policy making cycle — as opposed to only within selected portions of it — as a contributing factor to ensuring sustained engagement.

A survey of Vietnam-based private sector freight stakeholders conducted for the report confirmed an unmet need for greater engagement between the government and private sector on planning and policy making in logistics. Respondents strongly supported platforms for dialogue and collaboration consistent with the approaches suggested by the international experience.

Vietnamese graduates struggle to find jobs

“How can I have experience just after graduating from university? No firm wants to recruit an employee with little experience like me,” Nguyen Thuy Hang, 22, said while looking for accounting jobs on a jobs site.

The Hanoi National Economic University graduate has sent out CVs to dozens of local and foreign-owned companies, but only three of them have called her for interviews. Unfortunately, she said, she was less experienced than other applicants and did not make much of an impression.

“Employers require applicants to have mid-level professional work experience and English language and IT skills, though it’s only a low-level job.”

After four years of toil at the university and working part-time for a year as a tutor and a sales assistant at a stationery shop, she has yet to get a full-time job.

Hang is among over 400,000 university graduates entering the Vietnamese job market each year.

Many of them struggle to find a job.

Every year is the most difficult in history for job-seeking graduates, with the next being even more difficult.

Le Thanh Tuyen, who sells souvenirs at the night market in Hanoi’s old quarter, graduated with a finance and banking diploma last year. She sent her CV to various places, but never even got a response. “I don’t know when I will be able to find a job in my field of study. It’s so difficult to find one these days.”

The services and industrial sectors are improving but are not expanding quickly enough to absorb the increasing numbers of aspiring attorneys, accountants, biologists, and other young professionals.

Duong Duc Lan, director of the labor ministry’s vocational training department, said the country possibly has more graduates than it needs.

Vietnam has around one million high school graduates every year and only around 3% of them go to vocational schools, while most others only want a university degree, he said.

The number of university graduates unable to find jobs has been increasing and this group now accounts for a fifth of the country's unemployed workforce, according to new data released by the ministry.

The education ministry said 225,500 people with a bachelor's or master's degree are currently without a job, up 13.3 percent from the third quarter in 2015.

The education ministry, to improve education quality, has recently issued a policy which aims to limit the number of students at each school to under 15,000, starting this year.

But Hoang Ngoc Vinh, director of the ministry’s professional education department, said the unemployment problem might be caused by the quality of university education rather than a surfeit of university graduates.

Around 25-30% of the workforce in developed countries are university graduates, while the ratio is only 7% in Vietnam, he pointed out.

Many employers say students may have textbook knowledge but do not have the ability to take that knowledge to think critically, innovate, solve complex problems and work well in a team.

The director of a Hanoi-based medical equipment importer said his firm wants to recruit some engineers, but none of dozens of applicants fully meets its requirements.

Many engineers do not know foreign languages and are not abreast of developments in their own fields, he said. To have engineers who fit the bill, the company has to spend large amounts of money to train people both at home and abroad.

The managing director of jobs firm Navigos Search, Nguyen Thi Van Anh, said the shortage of necessary skills is much more serious in Vietnam than in other ASEAN countries like Singapore, Malaysia, and Thailand.

Local engineers do not stay up to date with regard to information and technology, and also lack foreign language skills and creativity, she said. Managers have modest management skills and knowledge of law and finance, she added.

“Skills gaps and mismatches still exist between the classroom and the workplace,” director of the International Labor Organization (ILO) Vietnam, Gyorgy Sziraczki, said.

“So bridging the gaps and addressing future demands for skills through better education, business cooperation and business participation in the development of skills standards and training curriculum are critical.”

The ILO has made recommendations to help Vietnam boost employment growth, including aligning of economic and workforce planning, certification of skills, and enhancing of partnerships between education-training providers and the private sector.

Many graduates want jobs in the state sector, which has little demand for human resources. The private sector is picky, and university degrees seem no passport for students to break into it.

In big cities like Hanoi and Ho Chi Minh City, many graduates work for low salaries, Nguyen Thi Lan Huong, chief of the ministry-run Institute of Labor Science and Social Affairs, said.

However, some do not do that and wait for well-paying jobs that may never come as they do not have English language skills or knowledge and confidence to be able to compete for the small number of top jobs.

Nguyen Duy Long has failed to get a white-collar job since graduating from the Hanoi University of Commerce two years ago, but he does not want a blue-collar job.

“There are jobs out there, but few of them meet my expectations,” he said, attending a job fair. But since his family lives in Hanoi there is no rush to find a job to pay for his living expenses, he said.

Like Long, many graduates do not want blue-collar jobs despite having no work or money.

They rely on their parents instead. Waiting has become a profession for young people.

Phan Truong Son, manager of a chain of restaurants, cafes and shops in Hanoi, said his firm announced vacancies for 20 salespeople and waiters, but got only three applications.

“New graduates should do simple jobs to get experience and learn to communicate with people, instead of waiting for white-collar jobs,” he said.

“Jobs are the best teacher of soft skills that employers seek.”

Arts and Literature Association convenes 9th congress

The Vietnam Arts and Literature Association convened its 9th Congress in Hanoi on January 9 in the presence of General Secretary Nguyen Phu Trong.

In his address, Party leader Nguyen Phu Trong praised Vietnamese writers and artists for greatly contributing to national development. The Party chief emphasized their important roles in enhancing the Party’s ideological and cultural work.

He urged the artists, through their artistic and literary works, honestly reflect the lives of the Vietnamese people and inspire national pride, patriotism, and trust in Party guidelines.

Fund-raising walk for the poor

As many as 14,000 people on January 9 joined the 11th Lawrence S. Ting charity walk around Ban Nguyet Lake (Crescent Lake) in Ho Chi Minh City’s District 7.

The charity walk raised a total VND2.88 billion which will be channeled to local funds for the poor ahead of lunar New Year Festival (Tet).

More than VND23 billion (US$932,000) has been raised from 11 such walks so far, significantly contributing to social welfare and charitable activities.

Concert fundraises for ‘green careers' training

A concert to raise funds to establish a "green careers" training programme for young people in Ho Chi Minh City will be held on January 22 at Saigon Ranger.

The event will feature DJ Jase from Vietnam, duo Slowbirds B2B Nori Nori from Japan, and DJs Bluntskull, Hugh G and Animal from the UK. The show will include a light and visual art performance by resident artist Antimatter.

All profits from the event will go to the Green Youth Collective, a NGO providing vocational training and environmental education for school drop-outs and youth with disabilities to prepare them for "green careers", from urban gardening to green roofs and walls to organic farming.

Steering committee looks back to 2015 judicial reform

The Steering Committee for Judicial Reform held a conference in Hanoi on January 9 to review its operation during 2015 and define working plans in 2016.

Chairing the event, President Truong Tan Sang, who is head of the committee, praised efforts of authorities at all levels in judicial reform, saying that these contributed to raising public awareness of their legal rights and rules of law.

He said the Steering Committee’s assisting agencies made careful preparations and strictly implemented and inspected judicial reform projects.

The agencies had worked closely with communication units to promote law dissemination and education and reaped positive results, the President noted.

He asked for a stronger endeavour in their work in the coming year, requesting the Standing office of the Steering Committee continue giving their consultancy towards the full implementation of the ‘1992 Constitution Institutionalisation Project’, helping the Steering Committee operate effectively in its upcoming tenure.

During 2015, the Steering Committee’s assisting units did an effective job of advising and building action plans, and issuing a number of documents to speed up the implementation of tasks assigned by the Steering Committee and the Standing office .

The agencies also conducted studies, assessed 17 projects and prepared briefs for the S tanding office , supported the Steering Committee in building 20 reports and joined a number of scientific studies.

At the conference, an ‘Emulation Movement’ in 2016 was lauched, towards improving the efficiency of judicial reform-related activities.

On the occasion, the Steering Committee presented certificates of merit to outstanding organisations and individuals in recognition of their stellar achievements in the last year.

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