Real estate sales up slightly in May

Real estate sales in May rose slightly month-on-month and compared to the first quarter this year, according to the Ministry of Construction’s Management Agency for Housing and Real Estate Market. 

Successful transactions were mostly in mid and hi-end segments while affordable ones were not sold well due to limited supply. 

During the month, the capital city of Hanoi recorded nearly 1,200 successful deals, up around 14 percent against last month, raising the five-month volume to about 5,400. 

In southern metropolis Ho Chi Minh City, nearly 1,300 deals were reached, marking a 12 percent increase. In January-May, up to 5,870 transactions were successful. 

Brokers said successful deals are mostly those lying near the downtown. Buyers also take into account transport convenience, facilities, apartment design, payment progress and value appreciation over time. 

In Hanoi, major sales were predominant in the southwest, such as The Golden Palm in Thanh Xuan, Gelexia Riverside in Hoang Mai and Gemek Premium in Ha Dong with synchronous infrastructure. 

Hi-end projects in Ho Chi Minh City also sold well such as Vinhomes Golden River Ba Son in district 1 and Ha Do Centrosa Garden in district 10. 

Low-rise housing in Lucasta Khang Dien in district 2 and Thu Thiem Garden in district 9 saw considerable sales. 

Tourism and resort properties in coastal localities such as Da Nang city, Nha Trang city in central Khanh Hoa province and Phu Quoc in southern Kien Giang province become attractive to investors at home and abroad.-

Vietnam to develop 1,370km cross-nation expressway at US$13bn

Prime Minister Nguyen Xuan Phuc has selected the official proposal for a colossal project to develop an expressway that runs from north to south.

The selected proposal, prepared by the Ministry of Transport and which has been open for feedback from state agencies, aims to develop 1,372 kilometers of expressway from now to 2025, with a hefty investment of VND314.1 trillion (US$13.84 billion).

The development plan selected by the Vietnamese premier on May 26 will be improved and finalized before the government reports it to the lawmaking National Assembly.

According to the proposal, the north to south expressway will include a 1,622km stretch from the Huu Nghi Pass in the northern Lang Son Province to Dau Giay Town in the southern Dong Nai Province, which borders Ho Chi Minh City. 

This section will be connected with an existing expressway from Dau Giay to the Mekong Delta city of Can Tho.

Of the 1,622km highway, 123km has been completed while another section of 127km is being constructed. The remainder 1,372km will be constructed with four to six lanes, varying between localities where the highway crosses.

The whole project is divided into two main phases with the first one scheduled for the 2017-25 period, and the second one, from 2025 onwards.

The first phase is expected to include two sub-phases with the first one running from 2017 to 2020. During this period, 632km of new road will be constructed and 81km of the current expressway will be expanded.

The estimated cost for this first sub-phase is VND130 trillion (US$5.72 billion), of which VND55 trillion (US$2.42 billion) is contributed by the government and the remaining capital is drawn from the private sector.

During the second sub-phase from 2021 to 2025, the country is expected to develop another 659km of expressway, estimated to cost VND113 trillion (US$4.97 billion), of which the government will contribute VND57 trillion (US$2.63 billion).

The second main phase starting from 2025 with a vision to 2030 includes expansion of various parts of the highway with a budget of VND69 trillion (US$3 billion).

The complete expressway that runs across the nation will span 1,372 kilometers, with investment totaling VND314.1 trillion.

The PM-backed proposal will be reviewed before being submitted for legislature’s approval during the third session of the National Assembly, running from May 22 to June 20, Deputy Minister of Transport Nguyen Nhat told Tuoi Tre (Youth) newspaper.

If approved by the National Assembly, the construction of the new north to south expressway will help connect various socioeconomic centers between the capital and the southern metropolis and reduce traffic pressure on the current National Highway No. 1.

Ministry makes efforts to reduce trade deficit

The Ministry of Industry and Trade (MoIT) plans to tighten control on goods whose imports are discouraged and facilitate local manufacturing to reduce the country’s trade deficit.

Statistics from the ministry showed that Vietnam exported about 79.3 billion USD worth of commodities in the first five months of 2017, an increase of 17.4 percent from the same period last year.

According to the MoIT’s Import-Export Department, the US remained the country’s largest buyer, followed by the European Union, China, ASEAN, Japan and the Republic of Korea.

The department said the country’s import-export activities showed encouraging signs, as it has maintained the growth rate in its export turnover. The trade deficit was reduced from 2.74 billion USD in the first four months of the year to 2.7 billion USD in the five-month period. The reducing trade deficit shows that the country’s efforts to ensure trade balance are proving to be effective.

It added that Vietnam’s export turnover has not only seen high growth in its traditional markets but the turnover has also been stable in countries with which it has common borders.

Le Bien Cuong, deputy director of the ministry’s Mountainous and Frontier Trade Department, said that in the first five months of the year, trade activities between Vietnam and countries with which it has common borders, especially China, has seen high growth rate.

However, there are rising concerns that continuous trade deficit for months might harm the economy. In addition to export growth, local firms’ imports of materials for production were also increased.

Thai Van Thi, director of Phu Tai Concrete Company, said they have been continuously importing materials for concrete production and investing in machines due to a large number of orders.

Thi said the company’s imports of machines and materials for production in the first five months of the year rose by 50 percent from the same period last year.

Many economists believed the trade deficit was still within an acceptable level, and it is normal for a developing economy such as Vietnam, which is integrating more deeply into the global trade and joining free trade agreements. Furthermore, domestic production has rebounded, motivating imports.

However, the ministry will use trade remedies against several imported goods to encourage consumption of made-in-Vietnam products to limit imports. Especially, it will continue to diversify exported products and markets to avoid much dependence on certain markets.

Reference exchange rate stays stable at week’s beginning

The daily reference VND/USD exchange rate on the first day of the week (June 5) stayed unchanged from the last working day of last week at 22,403 VND per USD. 

With the current trading band of  +/- 3 percent, the ceiling rate applied to commercial banks during the day is 23,074 VND and the floor rate 21,732 VND per USD. 

The opening hour rates at commercial banks also stayed stable. 

Both BIDV and Vietinbank listed their buying rates at 22,675 VND (buying) and selling rates at 22,745 VND (selling) per USD, unchanged from June 2. 

However, Vietcombank adjusted both rates up by 10 VND, listing the buying rate at 22,675 VND and the selling rate at 22,745 VND.

ICT workshop to be held to support SMEs

The Vietnam Internet Association (VIA) will organise a workshop entitled “ICT Comm Vietnam 2017” to promote the development of internet and information technology in Vietnam.

The workshop will be held in HCM City on June 7 with sponsorship from the ministries of Industry and Trade, and Information and Communications.

The workshop is expected to draw the participation of more than 200 small- and medium-sized enterprises (SMEs) in HCM City, ICT specialists and top-brand ICT companies such as Microsoft and VNG Corporation.

At the workshop, the SME community will be provided with an overview of the development trends for the e-commerce sector in 2017, based on which businesses can address their strategies matching regulations and improve their business efficiency.

The companies will also have an opportunity to meet and speak with top experts to develop successful business strategies.

CapitaLand wins best developer award

The PropertyGuru Vietnam Property Awards has recognised the developers, real estate projects and designs in top-tier markets and emerging resort destinations.

Presented by Kohler and organised by Oriental Media in Vietnam, the awards included categories for HCM City and Hanoi, recognising affordable, mid-end, high-end and luxury condos, office, hotel and retail properties, as well as outstanding residential development in Nha Trang, Da Nang and Ha Long Bay.

CapitaLand Vietnam, which entered the race with 10 nominations, was recognised as the year’s Best Developer (Vietnam) at the country’s biggest and most respected awards programme.

“CapitaLand Vietnam has proven to be a major force in Vietnamese real estate by producing high quality upscale residential and commercial projects. Its commitment to green building and sustainable projects is also commendable,” according to the independent panel of judges.

Another company that leads the winners’ list is Vietnam International Township Development JSC, developer of the ParkCity Hanoi integrated community project. Nine years after the launch of the project, it earned a total of five awards, including Best Housing Development (Vietnam) for the Evelyne Gardens Residential Neighborhood, ParkCity Hanoi Township.

Resort residential developers Nha Trang Bay JSC and MIVI Joint Stock Company won three trophies each for the Panorama Nha Trang condominium and the X2 Hoi An branded residences, respectively, in addition to a haul of four highly-commended certificates for the latter. Panorama Nha Trang by Nha Trang Bay JSC won the Best Condo Development (Vietnam) title.

These achievements showed the country was entering a “golden period” in the housing and resort segments, as tourism numbers continued to grow and resort residences and condotels rise in popularity, the organisers said.

Four-time nominee Novaland Group, the Best Developer winner during the inaugural awards in 2015, clinched a further two gongs, plus a special award for its chief executive officer Phan Thanh Huy, who was selected by the editors of PropertyGuru Property Report magazine as the 2017 Vietnam Real Estate Personality of the Year.

Hari V. Krishnan, CEO of PropertyGuru Group, said “It has been another solid year for the Vietnamese property sector. Confidence in the sector is rising, and with the country’s growing middle class population — majority of who are below 35 years and looking to invest in their first home — the boost that these projects will get by winning honours at the PropertyGuru Vietnam Property Awards is phenomenal.

 “I am encouraged by the Vietnamese developers’ focus on quality that directly impacts consumers. It’s important to acknowledge their efforts in bringing great value to consumers. Everybody wins that way.”

Thien Duong, managing director of Transform Architecture, who is chair of the 11-member central panel comprising experts in the real estate sector and related fields, echoed the same sentiment. “Considering that Vietnam is a developing country, I am impressed with the continual progress of its project quality from year to year.

 “The residential real estate sector continues to develop with competition from both foreign and local developers racing to win buyers. It is obvious the country has demand for quality residential developments in all price ranges.”

Terry Blackburn, founder and managing director of the PropertyGuru Asia Property Awards, said, “It is always great to see the Vietnamese real estate sector’s ambitious projects being recognised domestically and regionally. We hope the industry will continue to support the awards and aim for better quality and more sustainable projects in the coming years.”

Winners at the awards will advance to the finale to compete with domestic winners from 15 other Asian markets for more regional accolades.

2017 litchi exports shows great promise despite bad harvest

It’s only the beginning of the litchi crop but the atmosphere at the trading area is bustling. The fruit is sold at good price, ranging from 1.32 – 1.76 USD per kilo, around 0.44 USD higher than last year. However, this is due to a bad harvest this year.

Statistics from the Bac Giang province’s department of Industry and Trade show that due to a lean harvest, litchi yield in 2017 will be 40,000 tonnes lower than last year. Total output is estimated to hit only 100,000 tonnes, half of which will be exported.

It is noteworthy that despite the bad harvest, the province still carries out sales promotion programmes for the fruit. Since the beginning of the crop, there were upwards of 100 businesses from home and abroad that sought trading contracts.

2016 was a bumper crop for litchi growing. Luc Ngan district only exported more than 71,000 tonnes of the fruit to foreign countries. Of the total, 57,000 tonnes were shipped to China, 14,000 tonnes were to the US, Japan, Australia and the EU.

WorldTrans to open 10 Can Tho-Bangkok direct flights in summer

WorldTrans Travel and Transport Services will open 10 direct flights from the Mekong Delta city of Can Tho to Bangkok, Thailand from June 27 to August 2, heard a press conference on June 2.

The move aims to meet travel demand of people in the Mekong Delta region, especially students, to Thailand during this summer, said WorldTrans General Director Tran Tuong Huy.

It will help people from Can Tho save up four hours of travelling to Ho Chi Minh City by car, as the ticket fare from Can Tho to Bangkok is nearly the same as that of HCM City-Bangkok route, he added.

The direct flights will be operated by ThaiVietjet, with one flight in four days. The duration of each flight is 90 minutes.

The roundtrip ticket is 4.8 million VND (211.4 USD) per passenger and 4.5 million VND (198.2 USD) for each passenger in a group of 10 people and more. There is no one-way ticket.

According to Huy, 900,000 Vietnamese tourists came to Thailand in 2016. The figure is expected to hit one million this year, with visitors from HCM City and Mekong Delta region accounting for 60 percent.

The Mekong Delta region is also hoped to see nearly 100,000 people visit Thailand in 2017.

WorldTrans once opened direct flights from Can Tho to Bangkok, Nha Trang and Da Lat.

State treasury raises 5.9 trillion VND from government bonds

The State treasury has successfully raised 5.9 trillion VND (260 million USD) for the State budget through an auction of Government bonds on the Hanoi Stock Exchange (HNX) on June 1.

The bonds were offered for four tenures: five years and seven years, with 2 trillion VND for each term; and 10 years and 15 years, valued at 1 trillion VND.

The five-year bonds brought in only 1.343 trillion VND with a winning yield of 5.05 percent, up two basic points compared to the previous sale on May 24.

The seven-year and 10-year bonds sold for a total value of 3 trillion VND, at lower interest rates compared to the previous sessions, with winning yields of between 5.34 percent and 5.91 percent per year.

The 15-year bonds raised 950 billion VND, with a winning yield of 6.64 percent, which is six basic points lower compared to the session held on May 17.

A total of 600 billion VND was raised in the sub-session sales for the 10-year and 15-year terms.

Since early this year, the State treasury has been selling Government bonds. So far it has sold bonds worth around 103.4 trillion VND through auctions at HNX.

Vietnam-Czech business forum opens in Hanoi

The Vietnam-Czech business forum opened in Hanoi on June 6 in the presence of Czech President Milos Zeman, who is on a official visit to Vietnam. 

Speaking at the event, co-organised by the Vietnam Chamber of Commerce and Industry (VCCI), the Confederation of Industry of the Czech Republic, and Czech Republic embassy in Vietnam, President Milos Zeman said as one of the minority ethnic groups in the Czech Republic, the 65,000 Vietnamese community have enjoyed all citizens’ rights equally granted by the country. 

He noted with pleasure Vietnam’s economic development over the past years with noted economic growth rate.   

The President, however, said he is regretful as there has not been any direct flight between Hanoi and Prague, which has hindered trade and tourism ties between the two countries. 

He also suggested Vietnam exempt visa for Czech residents in order to boost the bilateral tourism and trade links. 

Deputy Prime Minister Vuong Dinh Hue said the Vietnamese government wants to boost cooperation with the Czech Republic in diverse areas, including energy, mining, infrastructure and transport, mechanical engineering, environment, national defence industry, hospital equipment and vocational training. 

Statistics showed that two-way trade between the two nations neared 250 million USD last year. In investment, the Czech Republic poured more than 100 million USD in 36 projects in Vietnam while Vietnam registered four projects worth 5 million USD in the Czech Republic, focusing on real estate. 

Deputy PM Hue said such results are encouraging but yet to match each side’s potential.  

He expressed his belief that the Vietnam – European Union free trade agreement, which is expected to take effect in 2018, will be strategic to making a turning point in cooperative ties between Vietnam and the EU in general and Vietnam and the Czech Republic in particular. 

According to VCCI Vice President Doan Duy Khuong, the Czech Republic is one of the strategic export markets of Vietnamese businesses. 

The Czech Republic is a gateway for Vietnamese goods to reach other European countries, while Vietnam can help Czech goods access the 600-million Southeast Asian market, he said. 

The forum has created an opportunity for the two countries’ businesses to exchange experience and expand the market.

Vinh Long seeks to promote trade in Australia

Authorities of the Mekong Delta province of Vinh Long held a working session with Seraco international education consulting company on June 6 to discuss trade and investment promotion with Australia. 

Seraco General Director Dinh Van Vinh said apart from linking Vietnamese and Australian universities and colleges together, the company also serves as a bridge connecting businesses between the two countries.

As scheduled, Seraco will complete a project on displaying Vietnamese goods in Australia later this year. Following the display, the firm will set up a showroom for long-term advertisement of the goods in the country, thus making it easier for Vietnamese goods to navigate the market. 

Vice Director of the provincial Department of Industry and Trade Vu Ngoc Tu said Vinh Long is strong in fisheries, high-tech farm produce  and handicrafts. In the near future, the department will work closely with Seraco to learn about regular exhibitions in Australia and its goods demand to submit a detailed trade promotion plan to the provincial authorities. 

In the first quarter of this year, the province will hold a national-scale trade promotion conference, affording Australian investors a chance to connect with Vietnamese firms, he said. 

Vice President of the provincial People’s Committee Lu Quang Ngoi said Vinh Long will support the company in working with local units, thus facilitating its role as a bridge between the province and Australia, especially in human resources training and trade promotion.

Three more companies trade on UPCoM

The Infrastructure Development and Construction Corporation (Licogi) officially began trading 90 million shares on the Unlisted Public Company Market (UPCoM) under the stock code LIC at a starting price of 4,900 VND (22 US cents) per share on June 5.

In April 2015, the corporation sold nearly 21.3 million shares during its initial public offering (IPO) at a starting price of 10,000 VND per share.

The equity auction saw positive results, with the entire offering being sold to 106 individual investors. It brought in more than 212.8 billion VND (9.3 million USD) and increased the company’s charter capital to 900 billion VND (39.6 million USD) following the equitisation.

However, in 2016, Licogi reported a net loss of 293.4 billion VND, a negative cash flow of 142 billion VND and total short-term debt in excess of current assets by 803.5 billion VND.

This year, the corporation set a target of 931.4 billion VND in net revenue and 29.4 billion VND in after-tax profits.

On the same day, the Ho Chi Minh Museum Construction Company (HMS) and the Viettronics Binh Hoa Joint Stock Company (VBH) also began trading stocks on UPCoM at starting prices of 20,000 VND and 20,900 VND per share, respectively.

Honda Vietnam to increase export of CBU vehicles by 12 percent

Honda Vietnam (HVN) aims to increase the export of completely built-up (CBU) vehicles by 12 percent and introduce 10 new motorbikes to the market in the fiscal year 2018 (from April 2017 to March 2018).

HVN Director General Toshio Kuwahara revealed the plan a ceremony in Hanoi on June 5 to review the company’s performance in the fiscal year 2017.

The company expects to boost sales of products by expanding its agent systems and enhancing service quality.

Customers will be provided with environmentally-friendly products with high fuel efficiency, new cutting edge technology and better safety.

HVN aims to open more safe driving courses for 3.8 million drivers of all ages and step up activities to sponsor education, environmental protection and community support.

In the fiscal year 2017, the company produced nearly 3.14 million motorbikes, a year-on-year rise of 8 percent. It sold 2.17 million units, up nearly 7 percent and accounting for 69.3 percent of the domestic market share.

It also launched more than 10 new products and exported 131,000 motorbikes, up 2 percent against the 2016 fiscal year, grossing 299 million USD in revenue.

HVN sold 12,227 automobiles, representing a yearly increase of 44 percent, the firms highest annual sales so far.

PM approves plan to equitise state-run construction corporation

Prime Minister Nguyen Xuan Phuc has approved a plan to equitise the State-run Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO) which has chartered capital of 3 trillion VND (132 million USD).

Under the plan, IDICO will sell 300 million shares at face value of 10,000 VND each.

The government will retain 36 percent of total shares, or 108 million, while the corporation’s employees will be offered 0.56 percent of shares, or more than 1.69 million.

Some 45 percent, or 135 million, will be sold to strategic investors while the remaining, 18.44 percent, will be put up for public auction.

The PM assigned the Ministry of Construction to fix the initial public offering price of the shares and amend the chartered capital structure if necessary.

The ministry was asked to transfer the ownership of State shares in the company to the State Capital Investment Corporation.

The government plans to divest entirely from IDICO by December 31, 2018. The company expects to issue new shares to raise capital in the future.

Hau Giang to build 1.5 trillion VND logistics centre

The Mekong Delta province of Hau Giang plans to build a logistics centre at a cost of over 1.5 trillion VND (66.03 million USD), aiming to reduce logistics cost in the region and improve competitiveness of regional products in both domestic and foreign markets.

The centre will cover 80 hectares in Song Hau Industrial Zone in Chau Thanh district. It comprises a wharf area, goods storage and warehouse, along with a control building, support areas and roads.

In the 2017-2020 period, the project will build quay, warehouse and office serving logistics activities on a 30-ha area.

According to Ho Thi Thu Hoa from the Ho Chi Minh City University of Transport, the centre has a favourable location near many industrial parks and road system connecting to the Mekong Delta key economic region and neighbouring countries.

Once operational, the centre will play a core role in goods distribution and transportation, boosting the socio-economic development of the whole region.

By 2025, it is expected to create jobs for 1,000 people.

Mitsubishi unit funds Vietjet Air’s aircraft purchases

Mitsubishi UFJ Lease & Finance Company Limited (MUL) will finance Vietjet Air’s acquisition of three brand new A321 aircraft, worth 348 million USD in total.

The loan followed an agreement inked between the two sides in Tokyo on June 5 in the presence of Prime Minister Nguyen Xuan Phuc and high-ranking officials from Vietnam and Japan.

The three planes are part of the A320 family aircraft contract signed between Vietjet and European aircraft manufacturer Airbus.

Vietjet will receive the aircraft this year to meet its expansion of flight network. The airline has so far received more than 20 brand new A321s and A320s.

Under the agreement, Vietjet and MUL - a member of Japan’s leading finance group Mitsubishi UFJ Financial Group will also work together to share best practices for the operation of airlines.

Last week, the Vietnamese budget airline also signed a series of deals in the US worth a total of 4.7 billion USD on engine and component maintenance support, technical services, auxiliary power unit (APU) supply and technical maintenance, and aircraft financing.-

Oil, petrol prices increase slightly

The Ministry of Industry and Trade, and the Ministry of Finance have decided to increase prices of oil and petrol products from 3:00 pm on June 5.

Accordingly, the prices of RON 92 rose by 303 VND per litre, E5 bio-petrol by 283 VND per litre, diesel 0.05S by 225 VND per litre, and kerosene by 326 VND per litre.

This is the third hike in petrol prices in 2017 with a total increase of about 1,150 VND per litre. 

Petrol prices have also reduced four times this year with a total decline of around 1,300 VND per litre.

The ministries said RON 92 is sold at no more than 17,366 VND per litre, while the ceiling prices of E5 bio-petrol, diesel 0.05S and kerosene are 17,154, 13,485 VND, and 12,118 VND, respectively.

The average global price of oil and petrol during the last 15 days before June 5 was 62.937 USD per barrel for RON 92 and 61.856 USD for diesel.

Banking sector sees 6.53 percent in credit growth

Vietnam’s total loans by May 25 grew 6.53 percent from the end of 2016, which supported domestic production and business in the context of slow public investment disbursement since the beginning of the year.

Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong made the remark on June 5.

The monetary market remained positive in the first six months of the year and interest rates have been stabilised thanks to the SBV’s regulation, Hong said.

Credits were continuously prioritized for production and business development while those for real estate slowed down, she said.

The SBV Governor guided financial institutions to control credit risks and ensure capital balance and the banking system’s safety.

As for foreign exchange, the central bank has kept a close eye on fluctuations of the domestic and foreign markets and launched rational daily reference exchange rates. The official exchange rates between the Vietnamese Dong and the US Dollar has surge 1 percent from the outset of this year, Hong said.

The SBV has joined hands with relevant ministries and branches to finalise a draft on bad debt settlement among credit institutions, the highlight of which is the establishment of a bad debt market. Accordingly, the Vietnam Asset Management Company (VAMC) is allowed to buy bad debts from banks, recover the debts through issuance of special bonds as well as sell debts to relevant individuals and organisations.

Binh Dinh sees rise in domestic, foreign investment flow

The south central province of Binh Dinh saw a surge in both domestic and foreign investment in the first five months of 2017, said Nguyen Thuc Dinh, Director of the provincial Department of Planning and Investment.

The province welcomed 47 domestic projects with total registered capital of 12.24 trillion VND (538.8 million USD), up 12 projects against the same period of 2016.

Projects with large registered capital included a residence-trade-service complex valued at 1.39 trillion VND (61.2 million USD) and Cam Van new residence area (in Nhon Hung ward, An Nhon town) worth 421 billion VND (18.5 million USD). 

Binh Dinh province also lured six foreign direct investment (FDI) projects valued at 92 million USD, up 3 projects compared to the same period last year.

Among them are Binh Dinh pig breeding farm project with registered capital of 21.2 million USD and a 64 million-USD wind and solar power project.

Chairman of the provincial People’s Committee Ho Quoc Dung said in 2017, Binh Dinh will continue increasing investment promotion activities to attract more domestic and foreign investment to Nhon Hoi economic zone and other local industrial parks.

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

Binh Dinh will also focus on popularising its investment environment and opportunities and supporting local investors and businesses in participating in conferences in Vietnam and other countries.

Workshop explores challenges to Vietnam’s energy policy

A workshop on perfecting Vietnam’s energy policy, towards ensuring national energy security, was held recently by the Association of Vietnamese Scientists and Experts (AVSE) and the Association of Electrical Engineering and Energy (AEEE) in Paris, France. 

Themed “Challenges of Vietnam’s energy policy”, the event gathered Vietnamese and French experts working in the energy sector and engineers and postgraduates studying and working in French research institutes and energy firms. 

The event also aimed to learn from France’s experience in developing renewable energy to reduce dependence on energy produced from fossil fuels that cause carbon emissions. 

As part of activities within the research project “Energy Planning for Vietnam’s sustainable development” (VENPLAN) performed by the AVSE and AEEE from June to December this year, the workshop helped France’s organisations understand more about Vietnam’s energy sector, towards establishing research cooperation with the country. 

It also gave recommendations for Vietnam's energy planning.

In his speech, Vietnamese Ambassador to France Nguyen Ngoc Son applauded the workshop and implementation of VENPLAN, saying that they help tap Vietnam’s intellectual resources in France, contributing to Vietnam’s energy development. 

Le Tuan Phong, Vice Chairman of the Vietnam Clean Energy Association briefed participants on Vietnam’s national energy development strategy. 

The Vietnamese Government wants to develop all energy sources from thermoelectricity, hydroelectricity, wind and solar energy, while strictly managing resources to ensure energy development and environmental protection. 

Vietnamese experts stressed the need to invest more in renewable energy. 

Meanwhile, French experts introduced low emission technologies and roadmaps to cut emissions.

Participants agreed Vietnam faces difficulties such as a shortage of capital and negative impacts caused by climate change in energy development.

They noted that Vietnam should take advantage of natural resources to develop the energy sector and minimise the impact of the energy industry on the environment, towards developing an environmentally friendly energy sector.

According to Tran Duy Chau, a key member of the VENPLAN, the project seeks new ideas, while performing thematic studies on urgent issues for Vietnam’s energy development.

Czech newswire comments on Vietnam-Czech economic prospect

The Czech newswire Euro.cz has underscored the importance of a meeting between President Milos Zeman and President Tran Dai Quang during his upcoming Vietnam visit from June 5-8. 

In the article, it said the Czech Republic wants Vietnam to off visa waivers for Czech tourists and launch a direct flight linking Hanoi with Prague to boost tourism and trade. 

According to the article, the Czech President will be accompanied by a business delegation led by President of the Czech Confederation of Industry and Transport Jaroslav Hanak, reflecting their interest in Vietnam’s market thanks to an abundant and low-cost workforce and business incentives. 

The tens of thousands of Vietnamese people living in the Czech Republic have been recognised as an ethnic minority. 

Two-way trade between the two nations neared 800 million USD. In the first half of 2016, some 30 Czech businesses invested over 170 million USD in Vietnam, ranking 40th among 150th countries and territories.

Nghe An wants businesses’ stronger role in seaport development

The central province of Nghe An is calling on businesses to come to build, manage and operate local seaports.

In the seaport system of Nghe An, Cua Lo is aimed to become an international seaport with some major specialised wharves being under construction. 

Among them, Vissai wharf is being built by the Song Lam Cement Joint Stock Company to serve the transportation of cement, clinker and coal. Meanwhile, a wharf of the Thien Minh Duc Joint Stock Company will handle the shipment of gasoline and oil once it is put into operation.

A wharf for 30,000 DWT ships and another for 50,000 DWT vessels are also being constructed at the deepwater seaport of Cua Lo. Two other facilities of the Cua Lo Port Co. Ltd there are set to become operational in the near future.

Cua Lo port is oriented to handle at least 12 million tonnes of cargoes a year.

At the Dong Hoi port area, the Vicem Hoang Mai Cement Joint Stock Company is building a wharf for the shipment of cement and construction materials. The Thanh Thanh Dat Co. Ltd is building a road to Dong Hoi Port and plans to inaugurate a wharf for 30,000 DWT vessels at this port in 2020.

Nghe An’s seaport development plan was made in line with the socio-economic development plans of the province and the northern central region, as well as the seaport system plan of Vietnam, according to local authorities.

However, Nghe An is also facing difficulties in investment attraction, capital sources and site clearance in the implementation of seaport projects. Therefore, it wants businesses’ stronger engagement in the field.

Cement export tax burdens domestic firms

The imposition of 5 percent export tax on cement is weighing down the industry, which has been facing a severe surplus of supply over demand in the local market.

Under Decree No 122/2016/ND-CP, which took effect from September 1, 2016, if spending on natural resources and energy for production accounts for 51 percent of a product’s price or higher, the product will be subject to an export tax of 5 percent. The decree was raised with an aim to limit the export of natural resources and minerals. Cement is currently subject to the tax.

The National Assembly Finance and Budget Committee has asked the Ministry of Finance to review this regulation, adding that it was difficult to verify the volume of natural resources producers are using and the costs of energy they are incurring, making the regulation infeasible and burdening export firms.

The Committee said the appropriateness of this regulation in reality must be evaluated to propose amendments and remove difficulties for firms.

According to Nguyen Quang Cung, President of the Vietnam Cement Association, there is currently no basis to verify the content of natural resources and energy costs. He said that they still rely on the declaration of producers, which is a loophole that firms could exploit to avoid tax.

In addition, such tax imposition on cement would discourage the application of new technologies in production to reduce prices. Modern technologies would help create economies of scale, thereby reducing total production cost, while spending on natural resource materials is unchanged. Therefore, the percentage of natural resource cost could exceed 51 per cent and it is possibly that they would pay much more tax, Cung said.

If tax imposition on cement aims to prevent the export of natural resources, other tax calculation methods such as partially progressive tariff like what is applied for the personal income tax should be applied rather than a fixed tax rate, he added.

He said that the export tax was undermining the competitiveness of the cement industry, which was struggling with a stockpile in the domestic market.

The association said that the current production capacity of domestic cement plants totalled 88 million tonnes per year and expansions and new plants were forecast to boost production capacity to between 120 million and 130 million tonnes by 2020.

Meanwhile, domestic consumption demand was anticipated to reach only 82 million by 2020.

Bac Giang exports lychees to China

The northern province of Bac Giang organised a trade fair to promote lychee consumption in the Pingxiang city, Guangxi province, southwestern China, on June 9.

The province expects to ship 50,000 tonnes of lychees abroad, half of the volume to China.

The locality has nearly 30,000 hectares under lychee cultivation, with a total output expected to reach 100,000 tonnes in this year, according to Vice Chairman of the provincial People’s Committee Duong Van Thai.

President of the Pingxiang city-based Wan Li Company, Lu Chunhua said thanks to the zero percent tax of the China – ASEAN free trade area and convenient distribution channel, which takes only three days to get Bac Giang’s lychees in China, his company plans to buy 500 tonnes of Vietnam’s lychees to sell in major Chinese cities like Shanghai and Guangzhou.

Close to Vietnam, Pingxiang is an important gate to bring Vietnam’s lychees to China.

Ford Vietnam launches safe driving programme

Ford Vietnam Limited Company launched Ford Driving Skills for Life, a programme on improving essential safe driving skills, in central Da Nang city on June 9.

Ford Vietnam aims to provide training for at least 1,500 drivers this year, raising the number of beneficiaries to 13,000 since the programme began in 2008.

Under this programme, the company will bring its safe driving courses to public transport companies in key localities as well as students of big universities in Vietnam.

Ford Vietnam General Director Pham Van Dung said traffic safety is of critical importance. Aside from basic safe driving skills, this year’s programme will provide knowledge suitable to each locality and circumstance for drivers.

At the programme launching ceremony, the Ford Foundation and Ford Vietnam presented eight “drunk suits” to the National Traffic Safety Committee to support driver training centres in Hanoi, Ho Chi Minh City and Da Nang.

The Ford Foundation also announced that it will provide 50 cameras for traffic surveillance in Da Nang so as to help ensure a civilised, safe and convenient traffic environment.

Ha Giang welcomes Japanese businesses

The northern mountainous province of Ha Giang rolls out the red carpet for foreign investors, including those from Japan, to seek investment opportunities, Chairman of the provincial People’s Committee Nguyen Van Son has said.

Ha Giang signed a Memorandum of Understanding with the Japan-Vietnam support industry assistance joint stock company in June 2016 after the Japanese firm made several fact-finding tours in the fields of healthcare, tourism, vocational training, and agriculture.

The Japanese company has supported the province to build a rehabilitation hospital and a centre for training human resources in the health sector. 

It also helped the Ha Giang vocational college carry out a training programme in automobile technology and veterinary.

The two sides have implemented cooperation programmes to develop hi-tech agriculture and tourism.

President of the company Murooka Katsunori said in the third quarter of 2017, his firm is stepping up coordination with the province to start the construction of the Japan-Vietnam joint venture rehabilitation hospital.

In addition to completing the cherry park project in Quan Ba district, the two sides have launched a centre of testing and piloting plant varieties in association with processing products for exports to Japan.

The company will promote the strengths of Ha Giang in Japan and dispatch business organisations to explore the local investment environment, Murooka Katsunori said.

According to Son, local authorities have granted investment license and business registration certificate for the company. 

The provincial People’s Committee pledged to direct relevant agencies to promptly address difficulties for businesses to ensure the progress of investment projects, he said.

He expressed his belief that with the effective bilateral cooperation, the Japan-Vietnam rehabilitation hospital in Vi Xuyen district and the cherry park in Quan Ba district will open up huge opportunities to serve Japanese tourists to the northernmost province.

Dong Nai’s first-half trade surplus forecast to hit 600 million USD

The southern province of Dong Nai expects to enjoy a trade surplus of nearly 600 million USD in the first half of 2017.

According to the provincial People’s Committee, Dong Nai aims to earn 8.1 billion USD from exports in the first half of the year, up 11 percent against the same period last year. Meanwhile, its import turnover in the period is estimated to reach 7.51 billion USD, an increase of 21.3 percent. 

Of the export earnings, the foreign-invested sector is projected to contribute 7 billion USD, up 12 percent, while the non-state sector and the state sector are forecast to make up 963 million USD and 108 million USD, respectively.

The trade surplus is attributed to the export growth of hard currency earners such as footwear with 1.3 billion USD and garments with 704 million USD, while wood and wooden furniture and textile products are estimated to contribute 508 million USD and 560 million USD, respectively.

Dong Nai’s export revenues from the Republic of Korea market recorded the highest growth of 19.6 percent, followed by China with 19.2 percent; Japan, 9.6 percent and the US, 5 percent.

In the first five months of the year, Dong Nai province raked in over 6.6 billion USD from exports while importing 6.1 billion USD worth of products.

Symposium reviews shipbuilding in two years

A total of 671 fishing vessels were built under Decree No. 67/2014/ND-CP on policies for fisheries development as of May 31, this year.

The figure was reported at a symposium on the building and upgrade of fishing boats in the central province of Binh Dinh on June 9.

According to localities, all the 771 newly-built and upgraded boats have began operation with many of them earning up to 1 billion VND (44,000 USD) each year. 

The Ministry of Agriculture and Rural Development (MARD) said since the implementation of the decree two years ago, localities nationwide have received the green light to build 2,284 boats. 

Nearly 1,950 ships are eligible to access bank credits and contracts worth nearly 9.3 trillion VND (409 million USD) were signed between 945 ship owners and commercial banks, the symposium heard. 

However, the problem lies with the low quality of steel-coated boats due to the limited capacity of shipyards, loose supervision of ship owners over the building,  and fishermen’s weaknesses in mastering advanced operation technologies. 

Given this, MARD Deputy Minister Vo Van Tam urged the Directorate of Fisheries to review relevant legal documents and seriously inspect the observance of the documents.  

Localities should intensify their supervision over the operation of shipyards  and continue to train fishermen in using steel-coated boats, he said.

Japan helps Ha Nam develop manufacturing workforce

Japan’s Kobe International Centre for Cooperation and Communication held a working session with authorities of northern Ha Nam province on June 9 to discuss a project on human resources development in manufacturing. 

The 376,800 USD project is carried out from 2017 to 2020, under which the Ha Nam Vocational College will choose a contingent of qualified teachers and suitable curricula, hold seminars and survey Japanese firms in the locality. 

Japanese partners will help with outlining syllabi regarding 5s methodology while Vietnamese teachers will have chances to interact with Japanese enterprises via various events. 

Speaking at the event, Chairman of the provincial People’s Committee Nguyen Xuan Dong, said the project will improve the capacity of Ha Nam Vocational College’s teachers and provide high-quality workforce for Japanese businesses in Ha Nam, contributing to poverty reduction and local economic growth. 

He also pledged all possible support for the project.

Vietnam to attend agricultural technology expo in India

Vietnamese businesses will have their first look at new global agricultural technologies and equipment at the EIMA Agrimach India expo to be held at the Indian Agricultural Research Institute in New Delhi in December.

The 2017 EIMA Agrimach India, the 5th International Exhibition & Conference on Agricultural Machineries, Equipment and Technologies, seeks to showcase the best and latest in agri-machineries besides providing an excellent opportunity for Indian and overseas players catering to the entire value chain through vertical-based national and international pavilions, according to the organisers.

Marco Acerbi, exhibitions department director of the Italian Agricultural Machinery Manufacturers Federation (FEDERUNACOMA) – one of the organisers – said the machinery displayed at the show could be adapted for both the Indian and Vietnamese markets.

Jasmeet Singh, head of agriculture at the Federation of Indian Chamber of Commerce and Industry (FICCI), said India too, like Vietnam, faced the challenge of small land holdings.

“We have huge lands but cultivable lands for farming are fragmented.”

He added FICCI was working with FEDERUNACOMA to launch all kinds of farm machinery in India and would like to do the same in Vietnam.

Ford holds 10.6 percent of Vietnam’s car market

US auto maker Ford reported that its market share in Vietnam in the first five months of this year stood at 10.6 percent after it sold nearly 12,000 units.

Pham Van Dung, managing director of Ford Vietnam, said the market share had jumped by 1.1 percentage points from last year.

Four out of Ford’s line-up of seven vehicles -- EcoSport, Ranger, Transit, and Explorer -- remain the top sellers in their segments, he said.

In May, the company’s overall sales rose by 6 percent year-on-year to 2,451 units.

Partnership formed to develop wind, solar power in Ninh Thuan

The Trung Nam Construction Investment Corporation (Trungnam Group) and the Trung Nam Wind Power Joint Stock Company signed contracts with partners on June 10 to implement wind and solar power projects in the south central province of Ninh Thuan.

Nguyen Tam Thinh, a representative of the Trung Nam Wind Power Joint Stock Company, said the wind power project will be carried out in coordination with the Trung Nam Construction & Engineering Corporation, the Power Engineering Consulting Joint Stock Company No. 4, the Duc Dung Design and Construction Consulting Joint Stock Company, the Lilama 45.3 Joint Stock Company, and the Green Cosmos Marketing Pte Ltd.

Under the contract, the engineering, procurement and construction (EPC) package will be carried out in 20 months since the signing date.

On the occasion, the Green Cosmos Marketing Pte Ltd also signed with Enercon group of Germany a contract on providing equipment to install 45 wind turbine towers at the Ninh Thuan plant. 

Besides, Trungnam Group and the Syntegra Solar International AG inked a contract on the solar power project consultation and management.

At the signing ceremony, German Consul General of Germany in Ho Chi Minh City Andreas Siegel said Enercon and Syntegra Solar are two prestigious and major German groups specialising in wind and solar power equipment provision.

The cooperation between Trungnam Group and the two groups will not only bring about benefits in terms of clean energy development but also serve as a milestone in Vietnam-Germany economic partnership in the renewable energy industry.

The construction of the Trung Nam wind power plant began in August 2016 with total investment of 3.96 trillion VND (174.5 million USD). The factory is set to have a capacity of 90 – 100 MW, generating 286 million kWh. Phase I of this project is scheduled to be completed in the third quarter of 2018 while phase II will finish in the second quarter of 2019.

Trungnam Group is also conducting a feasibility study of a solar power project as part of the wind power project. The company said it may develop a 515MW solar power project in Ninh Thuan.

Hue invest $2.26m in auxiliary industry     

The central province of Thua Thien-Hue has decided to set aside nearly VND52 billion (US$2.26 million) into auxiliary industries between now and 2025.

The investment aims to meet nearly 35 per cent of local demand for industrial manufacturing by 2020 and 55 per cent by 2025, respectively.

Specifically, VND24.65 billion ($1.07 million) will be earmarked for the 2017-20 period and the remaining for 2021-25 period.

Priority fields will include auxiliary industries for garments, leathers and footwear; metallics, plastics and rubber; electricity and electronics; as well as hi-tech industries.

The province is calling for building a high-quality factory to churn out shoe parts such as soles and toes for the footwear industry, with target of meeting 65 per cent of the sector’s demand by 2020 and 75 per cent by 2025.

Thua Thien-Hue will continue developing projects to provide materials for all production stages of the textile and garment sector, so as to form a complete production chain.

In the near future, the province will build an industrial centre supporting garment sector in the Phong Dien Industrial Park to serve the whole central region and the country.

The province plans to produce more than 100,000 tonnes of fiber and 20 million metres of fabric per year by 2020. The figures by 2025 will be 150,000 tonnes and over 45 million metres, respectively.

Production of other materials supporting the garment sector is expected to meet more than 70 per cent and 80 per cent of local demand by 2020 and 2025, respectively.

The respective figure for medical equipment and electricity-electronics parts supply will be over 35 per cent and 55 per cent.

The province will also give priority to support high-tech industries, including software, machinery maintenance and repair services meeting international standards. 

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