HCMC backs household business upgrades to firms

Authorities of HCMC will streamline procedures for household businesses to upgrade themselves to companies as part of a broader plan to have 500,000 enterprises registered citywide in 2020.

The city will cover all fees for enterprise registration and conditional business licenses, help household businesses with tax code registration procedures, provide advice on trademark registration, create favorable conditions for enterprises to borrow from banks at low interest rates and support their sales on the domestic market.

The city encourages household businesses with annual revenue of more than VND5 billion and more than 10 staff to be registered as enterprises. The effort began at three wholesale markets in the city from March.

VCCI plans to add environment as PCI criterion

The Vietnam Chamber of Commerce and Industry (VCCI) is mulling adding the environment as a new criterion for the Provincial Competitiveness Index (PCI) 2017.

It is important to improve the PCI criteria, Dau Anh Tuan, head of the legal department at VCCI, told the Daily on the sidelines of a seminar held in Vinh Long City on Wednesday on the PCI rankings of the Mekong Delta provinces last year and lessons learned.

Tuan, who is also director of the provincial competitiveness improvement project, underscored the importance of retaining what constitutes the PCI and at the same time reflecting the fast-changing provincial business environment. Therefore, VCCI  reviews the PCI criteria in a period of 4-5 years, and 2017 is the time.

VCCI has sought comment from experts on each of the PCI criteria. VCCI is processing their suggestions for the PCI concerning safety, security and asset protection for investors, solutions to corporate disputes, environmental pollution and sustainable development.

Presenting the 2016 PCI in the Mekong Delta, Tuan said the average index score of the region increased in terms of regional comparison but the change was insignificant. A number of Mekong Delta provinces were still at the bottom of the PCI rankings.

However, Tuan pointed out six positive indicators in the delta. The region led the country in terms of access to land while having better administrative procedures, a fairer business environment for the private sector, and an active governance mechanism and ensuring a safer legal environment for business operations than other parts of the nation. Local firms paid fewer informal fees than their peers in other parts. 

Tuan however said the quality of labor training was the lowest in the country last year and employers had to struggle with staff recruitments. 

Tuan said 81% of businesses active in the delta said they were grappling with more difficulties than their counterparts elsewhere in the country when it came to finding managing directors and managers in the delta.

Tuan urged the Mekong Delta to improve the provision of information for businesses as transparency in this field in the region was not highly appreciated. The smaller firms are, the harder they can look for the information they need.

Tuan called for the provinces in the delta to further streamline administrative procedures and step up dialogues with firms as businesses participating in the PCI survey showed they were pleased with the governments willing to talk with them.  

Tuan noted the Mekong Delta provinces should pay more attention to the problems local enterprises are coping with and offer them timely support. The PCI 2016 survey indicated 62% of businesses in the region said they had difficulty searching for customers while 43% found it hard to gain access to loans.

Vo Hung Dung, director of VCCI in Can Tho City, shared Tuan's view, saying that outstanding loans in the Mekong Delta accounted for a mere 9% of the country’s total.

Dung said investment in infrastructure in the delta remains low. He gave an example that the My Thuan Bridge was opened to traffic in 2000 and it took 10 years for the delta to have a second major bridge - Can Tho.

New animal feed mills unlikely

The Department of Livestock Production has proposed the Ministry of Agriculture and Rural Development (MARD) stop approving new animal feed factory projects in the country.

The department argued the domestic livestock industry is struggling with an oversupply which has sent prices of livestock, especially pigs, dipping.

At a press conference in Hanoi early this week, the ministry said meat imports had declined sharply. In the first two months of the year, the nation imported nearly 1,700 tons of pork, down 25% over the same period last year, and 15,000 tons of chicken, down 30% year-on-year.

“Meat imports have steadily edged down in the past three years. This is a clear indication that the country's livestock sector is able to meet the domestic demand,” said Hoang Thanh Van, director of the Department of Livestock Production under MARD.

But prices of meats, especially pork, have dropped since last year, delivering a blow to many livestock farming households. This is partly because pig exports to China via border trade have plunged.

A Vietnamese delegation headed by Deputy Minister of Agriculture and Rural Development Tran Thanh Nam has met the Chinese side to discuss ways to export Vietnamese farm produce to the neighboring country, especially pork and milk, said Tong Xuan Chinh, deputy director of the Department of Livestock Production.

Forum looks into fourth industrial revolution’s impacts on Vietnam

The Ministry of Industry and Trade held a forum in Hanoi on April 11 to evaluate the impacts of the fourth industrial revolution (4IR) on Vietnam’s socio-economic affairs as well as organizations and businesses.

Deputy Minister Ho Thi Kim Thoa said the 4IR is forecast to change the entire system of production and administration around the globe.

The 4IR is at the starting period, so it is necessary for Vietnam to promptly grab the opportunity to speed up industrialisation and modernisation towards the goal of becoming a modern industrialised country, she added.

However, the country will be under great pressure if it fails to define clear targets and suitable approach via economic reshuffle, education reform, and science-technology development, she noted.

Head of Vietnam Institute of Economics Tran Dinh Thien said the 4IR is creating challenges relevant to adjustment costs in the short and medium run due to its uneven impacts on separate sectors.

The rapid growth of many businesses would generate new technologies but also eliminate those who cannot catch up with the trend, he added.

So far Vietnam has geo-economic advantages along with an abundant and young workforce, but the 4IR will eliminate those advantages, he said, noting that the country needs a different and feasible approach to optimise opportunities from the 4IR.

Apart from improving education-training, human resources, and infrastructure, Vietnam should stimulate and promote innovation among businesses, he recommended.

Country Director of the UN Development Programme (UNDP) in Vietnam Louise Chamberlain said the 4IR is one of the most useful and quickest ways to help Vietnamese enterprises increase productivity and competitiveness.

The UN in Vietnam is willing to cooperate with the country to seize opportunities from the 4IR.

Vietnam, Cambodia strive for 5 billion USD in trade turnover

Vietnam and Cambodia have recorded encouraging outcomes in bilateral trade since diplomatic ties were set up five decades ago, and they are on the way to turnover of five billion USD in the near future.

Vietnam is the third biggest trade partner and the fifth largest foreign investor in Cambodia.

In late October 2016, Vietnamese Minister of Industry and Trade Tran Tuan Anh and Cambodian Minister of Commerce Pan Sorasak signed an agreement on trade promotion to raise bilateral trade to five billion USD.

Statistics show that trade soared from 184 million USD in 2001 to 3.05 billion USD in 2015. It hit 2.4 billion USD from January to October last year, including nearly 1.8 billion USD of Vietnam’s exports. 

Vietnam’s main exports to Cambodia include steel products, fertilisers, textile-garments, machinery, spare parts and plastics.

Shortly after signing the cooperation deal, the two sides provided tax incentives for each other’s commodities. In particular, 29 Vietnamese goods will benefit from zero-percent import tariffs when they are shipped to Cambodia, including milk and cream, cassava starch, meat and rice products, confectionary, paint, plastic products, paper, ceramics and steel products.

This is special treatment for Vietnam and better than Cambodia’s promised incentives for other ASEAN nations.

Meanwhile, Vietnam offered a zero-percent import tariff on 39 commodities from Cambodia, mostly agricultural products, plastic products, books and notebooks, fabric and bicycles. This incentive is believed to help Vietnamese businesses increase raw material supply for production.

Although Cambodia is a Southeast Asian trade partner that has won the interest of many Vietnamese investors, its legal system remains inconsistent between central and local levels. That fact has impacted Vietnam’s investment in Cambodia.

To step up trade relations, the two countries agreed to remove obstacles for businesses, effectively implement licensed projects and soon ink new cooperation agreements to raise trade to five billion USD.

Many experts said the two countries should issue support policies for enterprises which invest in or trade with Cambodia. Vietnam needs optimal mechanisms for import-export activities, customs procedures, tourism and labour cooperation.

According to Vietnamese and Cambodian leaders, the countries will enhance the implementation of the agreement on investment promotion and protection and soon sign an agreement on double taxation avoidance and a cross-border trade agreement which will replace the existing deal on goods and services buying, selling and exchange in border areas. They will also sign a labour cooperation agreement and a memorandum of understanding on transport cooperation strategy for 2017-2025.

Hoa Phat Group posts growth in steel output, market share

Hoa Phat Group, a major industrial production group in Vietnam, manufactured more than 505,000 tonnes of steel in the first quarter of 2017, up 27.9 percent year on year, while its market share expanded to 24.2 percent.

The group partly attributed the growth to the thriving property market and a surge in purchasing power.

It exported more than 52,000 tonnes of steel, mostly to the US, Canada, Australia and ASEAN countries in Q1 – equivalent to the export volume of all of 2016.

In March alone, the firm sold more than 183,000 tonnes of steel, increasing by two percent from the same period last year but dropping from 242,000 tonnes in February.

As a result, Hoa Phat’s steel market share went up by two percentage points from the end of 2016.

In 2016, it held a 22.2-percent market share with 1.8 million tonnes of steel sold. The group made up about 25 percent of total steel pipe sales in Vietnam, retaining the top spot in the domestic steel pipe market.

It earned 33.88 trillion VND (1.49 billion USD) in revenue and 6.6 trillion VND (291.3 million USD) in post-tax profit last year, respectively soaring by 34 percent and 89 percent from a year earlier.

Can Tho city seeks French investment in agriculture     

Officials of the Mekong Delta city of Can Tho introduced the local potential and advantages to French companies and called for investment, especially in agriculture, during a meeting on Monday.

They highlighted Can Tho’s potential of agricultural production such as rice, fisheries and fruit, along with hi-tech agricultural projects that need investment. They expressed their hope that French businesses would come to seek investment opportunities here.

Chairman of the Can Tho municipal People’s Committee Vo Thanh Thong said agriculture was a strength of his city as well as other Mekong Delta localities. Many products made in Can Tho such as agricultural and aquatic products, apparel and handicrafts had been imported by France and other European countries.

French firms should come to the city to invest in those areas in order to increase trade between Viet Nam and France, he noted.

There are six French-invested projects worth nearly US$6 million in Can Tho. Meanwhile, bilateral trade has been on an upward trend. The city earned about $31 million from exports, mostly aquatic products, garments and handicrafts, to France in 2016. Its imports from the EU nations include pharmaceuticals, fertilisers, and agricultural medicine, Thong added.

Can Tho had also carried out numerous co-operation activities in culture, education and healthcare with France. It expected bilateral relations to be intensified in the future, the official said.

Martine Fumey, vice chairwoman of the World’s No 1 Club, said the club gathered exporting companies in various industries of France, and they wanted to bolster the partnership with Vietnamese businesses.

Their visit to Can Tho this time was aimed at enhancing connections with local firms and seek investment opportunities, thereby gradually turning French enterprises into a key trade partner of the city, said Fumey, chairwoman of the Ares company, which specialises in security device production.

Jacques Aurin, secretary general of the club and president of the Baron de Madaillan AE company, said they were also interested in educational co-operation with Can Tho-based universities since education was the basis for economic development.

After the working session, the French delegation visited some rice, fishery and fruit processing companies in Can Tho.

Bao Viet Group’s revenue up 24% in 2016     

Bao Viet Group (HOSE: BVH) recorded a revenue of around VND25.7 trillion (US$1.13 billion) in 2016, a 24 per cent surge over 2015, and 14 per cent higher than the target set.

According to the group’s audited financial results released on Monday, revenue from life insurance touched VND13.48 trillion, making up 52.4 per cent of the company’s total revenue. Non-life insurance revenue reached VND7.19 trillion or 28 per cent, while revenue from financial services and other areas totalled around VND5 trillion or 19.6 per cent.

The group’s total assets last year was VND14.5 trillion, a significant 25 per cent increase compared to the same period in 2015, data revealed.

Privatised in 2007, Bao Viet Group aims to become a leader in both life and non-life insurance markets by 2020, as well as in fund management. The group now has 170 branches nationwide. 

Prime Minister approves golf course project

The Prime Minister has given the green light to a plan on developing the Kim Bảng golf project on a total area of 198.24ha in Kim Bảng District, Hà Nam Province.

The project’s total investment is VNĐ1 trillion (US$43.9 million).

He has also asked the People’s Committee of Hà Nam to complete procedures on adjusting the provincial land use plan by 2020. Subsequently, the province will submit plans to authorised agencies for approval and supervise investors’ implementation of regulations on investment, construction, business and land use, as well as environment and related commitments, Voice of Vietnam (VOV) reported.

The Kim Bảng golf project will be undertaken in two phases -- developing a golf course and a resort in Hà Nam Province. The project is expected to be in operation in the first quarter of 2018.

The Prime Minister has also agreed to reduce the scale of the GS Củ Chi golf course from 36 holes on 200ha to 18 holes on 90ha.

The People’s Committee of HCM City has decided to take back the remaining 110ha from the GS Củ Chi golf project and use the land for other targets according to existing regulations. 

RoK to be honorary guest at Vietnam Expo 2017

The Republic of Korea (RoK) will be the honorary guest and the largest exhibitor with 136 booths at the International Trade Fair – Vietnam Expo 2017 slated in Hanoi from April 19-22.  

The event will offer opportunities for businesses of Vietnam and the Republic of Korea (RoK) to exchange information and study market’s demand, Nguyen Khac Luan, Director of the Vietnam National Trade Fair and Advertising Company (Vinexad) said at a press conference on April 11. 

This year will mark the 19th consecutive time the RoK has participated in the Vietnam Expo in the event’s 27-year history.

Director of the Korea Trade-Investment Promotion Agency (KOTRA) Park Chul Ho said besides the Vietnam Expo 2017, the KOTRA will organize seven trade events this year, in the context of the 25th anniversary of the Vietnam-RoK diplomatic relations and the third year since the Vietnam-Korea Free Trade Agreement (VKFTA) took effect. 

The 27th Vietnam Expo is expected to attract 500 enterprises from 23 countries and territories, including Belarus, Uganda, Singapore, the Czech Republic, Japan, Malaysia, India, the RoK, China and Vietnam, covering 600 booths.

Besides the RoK, the event will feature the national displays of Algeria, Cuba, China and host Vietnam. 

With the aim of promoting exports and the domestic market, the Vietnam Expo will feature a wide range of products of local companies, particularly those winning the Vietnam Value Awards, such as machinery-equipment-electronic goods; industrial and household appliances; food and beverage; beauty care, among others.

A forum on export promotion will also be held during the trade fair to share experience and provide updated information on Vietnam’s investment environment.

Australia, WB partner to support Vietnam’s development agenda

The Australian Ambassador, Craig Chittick, and the World Bank Country Director, Ousmane Dione, signed on April 11 a new five year partnership to continue joint support to Vietnam’s sustainable and inclusive economic reform agenda.

Key achievements of the first phase of this partnership have included:

Improved national connectivity and access to markets for businesses, famers and the poor by constructing over 200km of rural roads, upgrading national highways and building 87 bridges;

Increased sustainable access to clean water and sanitation through the introduction of innovative mobile phone technologies to monitor water use; and improved poverty reduction strategies for rural communities in the Northern Mountains through providing policy advice to a new Law on Ethnic Minorities.

“One of the great achievements under the first phase of the partnership was to support the Government of Vietnam to develop the Vietnam 2035 report – a bold and ambitious vision for Vietnam’s economy in the next 20 years. Through the second phase of this partnership Australia looks forward to working with the World Bank to support Vietnam to implement this vision so that all citizens benefit” said Craig Chittick, Australian Ambassador to Vietnam.

Ousmane Dione, the World Bank Country Director for Vietnam noted, “The first partnership created a strong synergy to support the Vietnam’s development agenda. We have seen joint work in critical policy and reform areas enabling greater impact and influence than by working individually. This stepped up engagement will be mutually beneficial and help deliver stronger development results for Vietnam”.

Australia will provide 25 million Australian Dollars to the World Bank to implement this partnership over the next five years. Focusing on the areas of trade and competiveness; transport; ethnic minorities; Mekong delta with two crosscutting issues of gender and innovation, the partnership will support Vietnam to implement reform priorities identified in the Socio-Economic Development Plan 2016-2020 (SEDP).    

Apple sends ‘ultimatum’ to mobile stores over trademark infringement

A number of mobile phone stores in Vietnam have been warned for using Apple’s logo and other registered trademarks without the US tech company’s permission.

It is not uncommon for Vietnamese phone stores to use the Apple logo, the Apple and iPhone brands, along with other registered trademarks including the iPad, MacBook or Apple Store livery on their shop banners, advertisements and even their business plans despite not being authorized to do so.

Vo Tran Co. Ltd., a company hired by Apple Inc. to protect its intellectual property in Vietnam, has sent an 'announcement and recommendation letter' to mobile stores in Ho Chi Minh City and Hanoi to alert them of their trademark infringements.

The document claims that recipients are “using the ‘half-eaten apple’ logo and the Apple and iPhone brands on their shop front signage despite not being authorized to sell or repair Apple products.”

Specific mobile stores received variations of the same letter, which include an addendum saying those venues “were at some point selling fake products under the Apple brand name.”

Citing the law on intellectual property protection, Vo Tran emphasized in the warning letter that “using Apple brands on shop banners and business papers without Apple’s permission is an infringement of Apple’s intellectual property.”

Vo Tran has requested that the offending stores cease their unauthorized use of the Apple logo and brand name, as well as the sale of fake Apple products within seven days of receiving the ‘recommendation letter.’

Vo Tran director Vo Thi Minh Tam confirmed to Tuoi Tre (Youth) newspaper on April 9 that the move was part of a joint effort between the company and market watchdogs in Ho Chi Minh City and Hanoi.

According to a list updated on its website on February 24, 2017, Apple has nearly 300 registered trademarks, from individual product lines to technology used in the company’s devices.

The iPhone maker also states clearly on its website that in order to use Apple copyrighted material in third party businesses, an entity must submit a detailed request to the company’s copyright division.

“Only Apple and its authorized resellers and licensees may use the Apple logo in advertising, promotional, and sales materials,” the California-based company said in its guidelines for using Apple trademarks and copyrights

There are only a few companies authorized to officially provide Apple products and services in Vietnam. Among them are Futureworld, which was established in Vietnam in 2007 as an Apple Premium Reseller (APR) and Apple Service Provider (ASP), and F.Studio by FPT.

F.Studio by FPT is the official Apple-authorized dealer in Vietnam, having obtained both the APR and Apple Authorized Reseller (AAR) statuses.

Vo Tran’s letter is seen as an ‘ultimatum’ for mobile stores in Vietnam to stop publicly violating Apple’s intellectual property.

Shop owners have shared photos of the letter on Facebook, discussing how to respond to the warning by the iPhone maker.

Some say the request is “irrational,” adding that it is unreasonable to ban them from including the Apple logo or brand on shop signs when they sell Apple products.

“Should I say ‘Ai Phon’ or ‘Ai Mac’ on the signs instead?” one Facebook user mocks, using the phonetic equivalents of the iPhone and iMac in Vietnamese.

However, from a legal perspective, lawyers have said that Vo Tran is doing the right thing to protect the interests of its client.

Lawyer Tran Thi Mien said the Apple logo and trademarks are both protected in Vietnam as per the law on intellectual property protection, so Vo Tran, as a legal representative of the US company, is fully authorized to demand that mobile stores cease infringing on their brand name.

Lawyer Nguyen Kieu Hung agreed that stores who use the Apple brand in their business activities without the company’s authorization are committing an obvious violation of the company’s intellectual property.

“Apple is entitled by law to request violators of its intellectual property to stop their infringement, apologize to and compensate the company,” the attorney said.

If mobile stores refuse to follow the request, Apple has the right to bring them to court, Hung added.

Le Ngoc Lam, deputy head of the intellectual property department under the Ministry of Science and Technology, also said that Apple’s request to the offending mobile shops is “totally legitimate.”

“Apple has registered protection of their products, services and brands throughout Vietnam, so they have full discretion on whether or not to allow an entity to use them,” Lam said.

Siemens helps improve Vietnamese transmission grid performance

As part of an extensive programme to ensure a reliable national power supply in Vietnam, Siemens has received an order from the state-run energy company Electricity of Vietnam’s National Load Dispatch Centre, to improve the performance of the nationwide transmission grid.

Accordingly, the German industrial giant will supply and install products and systems for detecting and evaluating failure situations in the grid, for ensuring grid quality and for detecting and monitoring dynamic grid states.

The equipment will be installed in substations distributed throughout the country and in the grid control centres, where it will help increase the grid’s failure tolerance, improve its transmission capacity and optimise the expansion of new primary plants. 

The goal is to make better use of the existing grid infrastructure and to be able to connect additional loads as well as prevent outages that could result from overloading.

The substations and control centres are expected to be equipped with the new technology and go into operation by mid-2018.

Fault recorders from the Siprotec 5 7KE85 series, combined with the Sicam PQS evaluation software, will be used in 73 Vietnamese substations, and the Siguard PDP (Phasor Data Processor) wide-area monitoring system will be employed in three regional and one national grid control centres. 

These fault recorders work with an integrated function for measuring synchrophasors to monitor grid dynamics and measure grid quality. 

The devices enable the event-based evaluation, analysis and documentation of processes in the grid, including critical load situations, short-circuits, power fluctuations and power swings. 

The integrated Sicam PQS evaluation software evaluates the fault recorders to provide a quick overview of the grid quality.

The Siguard PDP wide-area monitoring system in the one national and three regional control centres will also help ensure that the transmission grid in Vietnam operates reliably. 

It uses synchrophasors in real time, making it easier to quickly assess the current condition of the grid. 

“In addition to power supply shortage, Vietnam is encountering high transmission and distribution losses for a number of reasons.  The Vietnamese government has put a great deal of efforts so as to reduce these losses. With this order, Siemens is very proud to be able to support the National Load Dispatch Centre in successfully fulfilling their challenging tasks while realising our commitment to assist Vietnam to improve the grid performance,” said Pham Thai Lai, Siemens Vietnam president and CEO.

VinaCapital completely divests Dai Phuoc Lotus

Vietnam Opportunity Fund Limited under VinaCapital, the leading asset management and real estate development firm in Vietnam, announced on April 10 that it has divested its entire stake in the Dai Phuoc Lotus real estate project located in the southern province of Dong Nai, near Ho Chi Minh City.

The site is a future residential township development with a total site area of 198.5 hectares and was acquired with VinaLand Limited in 2007. The project is currently undergoing its first phase in construction and sales.

Vietnam Opportunity Fund Limited (VOF), alongside VinaLand  Limited, disposed of its entire stake in Dai Phuoc Lotus to China Fortune Land Development at a total valuation of 20.4 per cent above the March 31, 2017 unaudited net asset value.

This transaction will result in net cash proceeds of $16.5 million to VinaCapital. As a result of the sale, VOF’s holding in direct real estate development projects has been reduced to 5.2 per cent of the total NAV.

 “This is a significant milestone in VinaCapital’s on-going strategy to reduce direct real estate holdings, and enables VOF to remain opportunistic in market areas where we see significant upside, namely privately negotiated deals and OTC investments,” Ho said.

Dai Phuoc Lotus consists of 332 high-end semi-detached and detached villas. Around 200 villas of the first phase have been handed over to buyers.

Located in Dong Nai, it takes only 30 minutes by river or 50 minutes by road to reach Ho Chi Minh City centre. Dai Phuoc is a perfect venue for vacations, meeting all demands of residents, such as large swimming pools and an open-door picnic area. The developer has decided to reserve a large area particularly for farming in the project. This farm will supply clean vegetables to residents at the same time as being an ideal picnic venue for visitors in the future.

Dai Phuoc Island is considered a pearl in the east of Ho Chi Minh City, in the shape of a water drop, offering residents a very nice living environment.

Dragon Capital sets foot in Myanmar

Dragon Capital Group in Vietnam and the Ruby Hill Financial Company, a member of the Loi Hein Group in Myanmar, have agreed to subscribe to shares, 49 per cent and 51 per cent respectively, in Ruby Hill Microfinance, a new microfinance institution based in Yangon, Myanmar.

Ruby Hill Microfinance will commence with initial capital of $5 million and will focus on promoting inclusive loan products and services to the burgeoning workforce driving Myanmar’s rapid economic development.

It will be strategically led by the Chairmen of both Loi Hein, Dr. Sai Sam Htun, and Dragon Capital, Mr. Dominic Scriven, who will directly chart the business course from its board of directors. Ms. Trinh Proctor, Loi Hein Group’s Chief Strategy Officer and formerly with Standard Chartered Bank, has been appointed CEO. She has extensive experience in the fields of formulating bank strategy, risk management/processes, and human capital development.

“The success of Ruby Hill Microfinance is of paramount importance to the Dragon Capital Group, as it is our first investment in Myanmar,” said Mr. Scriven. “We have been offered a tremendous opportunity by Dr. Sai and the Loi Hein Group to jointly establish and develop Ruby Hill Microfinance with a local partner of means and conscience.”

Loi Hein is a leader in the fast-moving consumer goods segment in Myanmar and its products, such as Alpine water and a wide range of carbonated soft drinks, are known for their superior quality. “With Loi Hein diversifying into financial services, we have found that we are like-minded with regard to the operational and financial goals for Ruby Hill Microfinance, and the contribution that it must make to the betterment of people’s lives,” Mr. Scriven added.

The formation of Ruby Hill Microfinance will marry the banking and microfinance expertise developed by the Dragon Capital Group in Vietnam and the Greater Mekong Sub-Region with the local presence and knowledge of the Loi Hein Group, one of Myanmar’s largest and most respected business conglomerates.

According to the United Nations Capital Development Fund (UNDCF), more than 50 per cent of Myanmar’s 60.9 million population had no access to financial services in 2013 and a further 30 per cent of the population accessed unregulated services. This imposes significant costs on poor people. Total unmet financing demand in the country is estimated at around $1 billion.

“It is vital for the economic prosperity of Myanmar that we channel the financial resources we have to productive purposes,” said Dr. Sai. “We know that Dragon Capital has experience in successfully implementing microfinance services in the region, and we have chosen them as our partner in Ruby Hill Microfinance because we have confidence that they will work hard with us to deliver the means for wealth creation in Myanmar.”

Founded in 1994, the Dragon Capital Group is an integrated investment company based in Vietnam. Together with its affiliates, it manages some $1.5 billion in assets spanning public equity, private equity, fixed income, and property. Its primary shareholders are its founders, management, and staff.

State businesses need strategic vision in management: PM

Prime Minister Nguyen Xuan Phuc has asked State-run enterprises to further improve administration capacity and have a strategic vision for stronger development.

He made the request while attending the 10th founding anniversary of the Party Committee of the Central Businesses Bloc (CBB) in Hanoi on April 11.

The leading mission of the CBB Party Committee is helping State-owned businesses develop and fulfil political tasks entrusted by the Party and State, he said.

He acknowledged the committee’s significant contributions to the national development over the past decade, saying State companies contributes 26-30 percent of the gross domestic product (GDP) and serve as an important tool of the State to stabilise the macro economy and boost growth.

Mentioning its shortcomings in personnel work over the past time, the Government leader stressed that enterprises will only succeed if personnel work is done well.

State businesses should learn from experience in investment and capital management, labour productivity improvement, brand building and business administration, he said.

He also underlined the crucial role of the State economy, which makes up at least 15-35 percent of GDP, saying that the development of the State economy is imperative to successfully build a socialist-oriented market economy.

In the context of the fourth industrial revolution, the PM urged State companies to pioneer in the field to accelerate international integration.

He said science-technology development is a big issue in Party leadership as it is key to businesses’ success.

The Government leader requested State firms to improve their role and capacity to fulfil political missions, including the Party building and thrift practice.

Bình Dương records positive export growth

The export turnover of the southern Bình Dương Province touched US$6.36 billion in the first quarter of 2017, a year-on-year rise of 16.1 per cent.

The domestic sector contributed $1.14 billion, up 8.4 per cent, while the foreign-invested sector accounted for $5.22 billion, up 16.8 per cent, the provincial department of Industry and trade revealed.

Products that saw high exports include wooden items ($894.6 million), clothes ($741 million), and leather and footwear ($575 million).

In March alone, the province’s export earnings recorded a 9.5 per cent rise to $2.15 billion. Of this, the domestic sector contributed $359.2 million, while the foreign-invested sector put in $1.79 billion.

The province has imported $4.66 billion worth of goods in the first quarter, up 14.9 per cent. In March, import was valued at $1.6 billion.

March sales of cars up 52 per cent

The Vietnamese auto market sold nearly 26,900 cars in March, an increase of 52 per cent compared with the previous month, according to a Vietnam Automobile Manufacturers’ Association report.

Of this figure, there were 16,806 passenger cars, 8,278 commercial cars and 1,789 special-use units, up 67 per cent, 31 per cent and 45 per cent, respectively.

The market witnessed a 35 per cent rise in the sale of locally-assembled cars to touch 18,388 units.

Meanwhile, there were 8,484 imported complete built-up units (CBUs), 114 per cent higher than the previous month.

The import of cars is forecast to accelerate this year as import tariff in the ASEAN bloc will become zero per cent in 2018.

Custom Vietnam recently asked its branches in major cities and provinces to check the certificate of origin on import CBUs when applying the new import tariff rate, especially the origin criteria of vehicles from ASEAN countries.

A report from the General Statistics Office showed that Việt Nam imported 19,000 cars in the first quarter of this year, a year-on-year increase of 169 per cent in volume and 82 per cent in value.

Vietnam fails to score big in Egyptian fish market

Consumption of fish is a traditional and vital component of the Egyptian diet, and a primary source of inexpensive animal protein for the growing population, said Vietnam Trade Counsellor Pham The Cuong recently.

Fish and fisheries in Egypt are expected to produce 1.4 million metric tons of product in 2017, principally seabass, tilapia and catfish, said Mr Cuong, adding that 40% of it is allocated for domestic consumption and 60% for export to EU countries and Gulf states.

Mr Cuong noted fish and fishery imports of Egypt for the year are estimated at 215 thousand metric tons and consist primarily of mackerel, sardines and other. Most imports are made around the major holidays, such as Ranja. 

Imports of frozen basa and salmon are also made on a more regular year-round basis to feed the poverty-stricken people in the country.

Mr Cuong pointed out that fish consumption in the country linking northeast Africa with the Middle East has long been characterized by a traditional preference for wild caught fresh fish.

The per capita consumption of fish in Egypt is 20.5kg compared to a global per capita of 19.3kg.

 vietnam fails to score big in egyptian fish market hinh 1 However, with the development in cold storage facilities over the past decade, and improved distribution channels, frozen fish is becoming a more acceptable alternative for a limited number of Egyptian consumers.

Another important influence in the fish and seafood market in Egypt is price, said Mr Cuong. As an example, he said tilapia is indigenous to the Nile and has been a popular feature of Egyptian cuisine since the Pharaonic times.

However, nowadays with the prices of wild caught fish and alternative sources of meat and poultry soaring— cooks throughout the country are becoming more amenable to farm raised seafood alternatives.

Particularly high quality farm raised tilapia, which because of its health benefits and place in Egyptian culture can be found street side and in high end restaurants as well as households throughout the country.

Fish and fishery exports of Vietnam to Egypt have been inconsequential over past years, Mr Cuong underscored. According to official statistics they went from US$20 million in 2007 to US$64.2 million in 2015 and then dipped to US$46 million last year.

The Trade Counsellor said pangasius catfish and Nile perch are two species which could potentially compete directly with tilapia in the Egyptian (and international market) if Vietnamese farmers would focus on food safety and produce quality fish.

Vietnamese farmers and exporters should also take note that most fish in Egypt is not sold in supermarkets or live markets like it is in Vietnam. 

The overwhelming majority is sold in specialized fish retail markets owned and operated by individuals or businesses that exclusively sell fish products. Most but not all retailers appear to be men, with perhaps around 10-15% being women.

Many of them operate in specific market areas dedicated for groups of retailers. For example, in Cairo there are several specific retail fish markets such as Moneab, Zaytoun and Embaba and Sayeda Zaneb, Waely, Faisal and Maadi.

Most of these retailers sell a variety of distinct species including tilapia, mullet and catfish, and virtually all sales of domestic fish (wild and farmed) are in whole fresh form.

So, if Vietnamese want to score big in the Egyptian market they need to get their foot in the door of these specialized fish markets and not focus solely on supermarkets, Mr Cuong concluded.

Jetstar upbeat about direct services to HCMC

Jetstar Group’s global head of sales Paul Rombeek has expressed optimism about the direct services which Jetstar will conduct from Sydney and Melbourne to HCMC from May given increasing air travel demand and expanding Australia-Vietnam ties.

Rombeek told a press conference in HCMC on April 5 that Jetstar will become the only Australian carrier to fly direct between Australia and Vietnam with three weekly flights from Melbourne to HCMC from May 10, and four services a week from Sydney from May 11.

Ticket sales for the new flights using Boeing 787 Dreamliner jetliners kicked off early this year and demand from Vietnam has been higher than anticipated. “Response has been extremely promising since we launched ticket sales in January,” Rombeek said.

He stressed the new flights will also stimulate inbound tourism, business and trade to Australia. “In the last 12 months, there has been a 21% increase in visitors from Vietnam to Australia and we expect to see that grow with the introduction of our low fares on the route.”

Vietnam is one of the fastest-growing aviation markets in the world and air travel demand is rising as seen on the HCMC-Singapore-Australia flights operated by partner airlines of Jetstar. Statistics showed last year saw international arrivals in this ASEAN country surpassing 10 million.

Vietnam attracted around 320,680 Australian visitors last year, up 5.6% over 2015, according to the General Statistics Office. The number in the first quarter of this year grew 3.4% year-on-year to 95,160.

Rombeek said Jetstar expects its low fares and direct flights will generate even more demand for holidays to Vietnam. “We understand tourism is a priority for the government, the economy and the people of Vietnam and we are proud to support them through these flights.”  

Jetstar is committed to the new services and confident in their success, according to Rombeek. Fares of the flights start from A$159.

Australia’s Assistant Minister for Trade, Tourism and Investment Keith Pitt said Vietnam is quickly becoming one of the most popular destinations in Southeast Asia for Australians, and that promoting international investment and tourism is his top priority.  

“The seven new weekly Jetstar flights connecting Vietnam and Australia’s commercial centers will further boost our already strong bilateral relationship. In particular, these flights will help grow the links between our businesses and our people” said Pitt, who also attended the press conference on the launch of Jetstar's low-cost direct services from Australia to HCMC.

Data of Vietnam’s General Department of Customs showed two-way trade between Australia and Vietnam stood at US$5.26 billion last year, up 6.5% from 2015. Of the total, Vietnam’s exports to Australia fell 1.7% year-on-year to US$2.87 billion and imports surged 18.3% to US$2.39 billion. 

Vietnam sold crude oil, cameras and components, steel products, apparel and footwear, electronic products and parts, and furniture; and imported coal, minerals, cotton and fruits, among others.

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