Agribank’s assets exceed VND1 quadrillion

After BIDV, Agribank is the second bank to be named on the country’s list of banks with total assets exceeding the threshold of VNÐ1 quadrillion (US$43.86 billion).

According to Agribank’s latest mid-year report, its total assets reached VNÐ1.02 quadrillion by the end of May.

The bank’s mobilised capital by the end of May was nearly VNÐ964.7 trillion, while its total outstanding loans were VNÐ781 trillion, of which lending to agriculture and rural areas accounted for over 70 per cent of Agribank’s total outstanding loans, or equivalent to 50 per cent of the entire banking system’s total market share in the sector.

The total outstanding loans under Agribank’s preferential credit programmes for clean agriculture area reached more than VNÐ3 trillion, of which loans for the clean agriculture segment was VNÐ633 billion, with 23 institutional customers and 44 individual customers; and loans for the high-tech agriculture segment was VNÐ2.4 trillion, with 20 institutional customers and 3,063 individual customers.

Agribank’s system currently has over 2,300 branches and transaction offices with nearly 40,000 employees.

International credit rating organisation Fitch Ratings recently revised Agribank’s Long-Term Issuer Default Rating Positive from Stable. 

Banks follow SBV’s cue, announce rate cuts

Following the State Bank of Vi?t Nam (SBV)’s decision to cut the annual maximum short-term interest rate for d?ng loans by 0.5 percentage points, several banks have announced rate cuts.

On July 7, the central bank determined that businesses in the agricultural, export and auxiliary sectors, small- and medium-sized enterprises (SMEs), and high-tech firms could borrow from commercial banks at a maximum short-term rate of 6.5 per cent per year, instead of 7 per cent.

The policy came into effect on Monday.

Among the four State-owned commercial banks, the Bank for the Investment and Development of Viet Nam is the first to offer a maximum short-term lending rate of 6 per cent for the prioritised enterprises.

The Bank for Foreign Trade of Viet Nam (Vietcombank) has cut the maximum short-term lending rate by 0.5 percentage points.

The Vietnam Bank for Agriculture and Rural Development (Agribank) has also reduced the interest rate for short-term loans from 7 per cent to 6.5 per cent, and for medium- and long-term loans from 8.5 to 8 per cent.

The Sài Gòn Thuong Tín Commercial Joint Stock Bank has launched a credit package worth VNÐ1 trillion (US$44 million) which has a maximum short-term lending rate of 6.5 per cent for the prioritised sectors. Previously, the cap was 7 per cent.

On July 8, LienVietPostBank reduced the interest rate for loans across all terms by 0.25 percentage points for enterprises with strong, transparent financial capacity, classified AA and above.

SMEs hard to access bank loans

Nearly 70 percent of 2,600 surveyed small-and-medium sized enterprises (SMEs) had to seek loans on the black market as they were unable to access bank loans.

The businesses’ ability to access loans fell from 45 percent in 2011-13 to 24 percent in 2015. The loans granted to the remaining 30 percent accounted for only 3 percent of total bank capital in the market.

The survey which was conducted by the Central Institute for Economic Management (CIEM) in co-operation with Copenhagen University and the Institute of Labour and Social Affairs at the end of last year was released at the Enterprise Connecting Day held in Hanoi last weekend.

Dau Anh Tuan, Head of the Legal Department under the Vietnam Chamber of Commerce and Industry (VCCI) said its annual report showed that last year a record 110,100 businesses were established, representing a 16 percent year-on-year increase. The total registered capital of the firms hit 891.1 trillion VND or 48 percent higher than the previous year. 2016 also saw 26,689 companies resuming operations, up 24 percent from the previous year.

However, the report also said that the rate of businesses facing difficulties in accessing bank loans was 44 percent. The interest rate for big firms was 7 percent a year while that for SMEs was more than 8 percent.

The report shows that SMEs faced difficulties in accessing bank loans and were charged higher interest rates, Tuan said.

He added that 87 percent of businesses have had difficulties in mortgage assets, 66 percent complained about high interest rate and lending conditions while 51 percent believed that lending procedures were complicated.

“In addition to difficulties in accessing bank loans, SMEs have faced troubles in seeking customers, suitable human resources and cumbersome administrative procedures,” said Pham Hoang Tien, director of VCCI’s SMEs Promotion Centre.

Hoang Xuan Hai, director of VAG International Joint Stock Company which specialises in producing and exporting towels said many banks took meetings with him to discuss his company. However, they refused his loan applications as his company did not have assets for mortgage.

Sharing the ideas, Bui Thi Hong Ha from CPART Company, which develops microbiological lines for environmental protection, husbandry and cultivation said their products have big potential, especially for exports to Laos.

However, they have had difficulties in accessing bank loans, with the cumbersome procedures requiring several meetings.

Dao Gia Hung, deputy director of the Vietnam Prosperity Bank (VPBank)’s SMEs Division, said there are problems in the market that keep banks and businesses apart.

“However, VPBank has provided support to remove capital barriers for the development of SMEs,” Hung said, adding that the bank has offered many credit products for SMEs and micro firms.

VPBank does not require complicated administrative procedures and uses experienced bank staffers to inspect businesses’ operations to grant loans quickly.

He added that providing loans to enterprises meant risks in payment. VPBank therefore has always paid attention to improving its risk management. It has built infrastructure to control risks, with staff members consulting businesses after loans are approved.

“Over the past few years, risks relating to the bank’s loans to SMEs have been under control,” he said.

Le Dang Doanh added that SMEs should get more involved in value chains and deepen international integration.

Deputy PM chairs meeting on SOEs restructuring

Deputy Prime Minister Vuong Dinh Hue chaired a meeting in Hanoi on July 11 to review the restructuring of State-owned enterprises (SOEs) in the first half and launch tasks for the remaining months this year. 

Speaking at the event, Hue, who is also head of the Steering Committee on Corporate Renovation and Development, hailed ministries, agencies and localities for improving openness and transparency in the effort. 

However, he also admitted that SOEs equitisation still meets difficulties regarding land pricing and responsibilities of State asset managers. 

He made it clear that the government will consider responsibility of leaders who are yet to fulfill tasks involving SOEs equitisation and divestment. 

The Deputy PM asked ministries and agencies concerned to amend and supplement Decree 59/2011.ND-CP on converting SOEs into stock companies. In July, the Ministry of Planning and Investment (MoPI) was assigned to make a list of SOEs which conduct divestment from 2017-2020. 

The MoPI and Finance Ministry must also amend and supplement Decree 91/2015/ND-CP on pouring State investment into businesses and the use and management of corporate assets and capital. 

Deputy Chairman of the Government Office and deputy head of the steering committee Le Manh Ha said six out of 137 SOEs have so far completed equitisation for the 2017-2020 period. 

As of the second quarter, 22 SOEs sold State capital worth more than 11,589 billion VND (503.8 million USD), or 314.11 percent from last year’s same period. Up to 11 out of 12 SOEs have been listed. 

The Finance Ministry reported that 730 firms under 84 corporations, 17 ministries and 53 localities are yet to apply for listing or list on the stock exchange. 

The PM has approved a scheme on improving the efficiency of agro-forestry enterprises under 40 localities, a ministry, a corporation and four State companies for the 2016-2020 period. 

Deputy Minister of Industry and Trade Do Thang Hai said the ministry’s major businesses are devising equitisation plans to submit to the PM for approval.

Motorcycle sales up in six months

The Vietnam Association of Motorcycle Manufacturers (VAMM)’s five members sold over 1.5 million vehicles in January-June 2017, representing a year-on-year rise of 6 percent.

The VAMM members include Honda Vietnam, Piaggio Vietnam, Suzuki Vietnam, SYM Vietnam and Yamaha Motor Vietnam.

VAMM President Yano Takeshi said the automatic bikes make up 45 percent of the market share and this will be the strongest growth segment in the coming time when the average per capita income goes up.

At a ceremony to review business performance held in Hanoi recently, General Director of Honda Vietnam Toshio Kuwahara revealed that the total motorcycle sales in the fiscal year 2017 reached nearly 3.14 million vehicles, posting an annual increase of 8 percent.

Of which, Honda Vietnam sold 2.17 million units, up nearly 7 percent against the previous fiscal year and accounting for about 70 percent of the domestic market share, he said.

The growth of automatic bikes was 52 percent, compared to 48 percent of geared motorcycles.

Businesses are still focusing on producing both automatic and geared bikes to meet the demand of customers in both urban and rural areas.-

Restructuring of State-owned enterprises under scrutiny

A meeting was held on July 11 in Hanoi to review the restructuring of State-owned enterprises (SOEs) in the first half and devise tasks for the remaining months of this year.

In his remarks, Deputy Prime Minister Vuong Dinh Hue, who is also head of the Steering Committee on Corporate Renovation and Development praised the efforts made by ministries, agencies and localities to improve openness and transparency in the restructuring of SOEs.

Hue pointed out difficulties in land pricing and responsibilities of State asset managers in SOEs equitization, adding that the government will consider responsibility of leaders who are yet to fulfill tasks involving SOEs equitization and divestment. 

The Deputy PM asked ministries and agencies concerned to amend and supplement a number of decrees regarding the process of SOEs equitization in connection with State investment into businesses and the use and management of corporate assets and capital. 

Deputy Chairman of the Government Office and deputy head of the steering committee Le Manh Ha said six out of 137 SOEs have so far finalized equitisation for the 2017-2020 period. 

The Finance Ministry stated that 730 businesses under 84 corporations, 17 ministries and 53 localities are yet to apply for listin on the stock exchange. 

The PM has adopted a scheme on improving the efficiency of agro-forestry enterprises under 40 localities, a ministry, a corporation and four State companies for the 2016-2020 period. 

Deputy Minister of Industry and Trade Do Thang Hai said the ministry’s major businesses are mapping out equitization plans to submit to the PM for approval in the time to come.

APEC members discuss sustainable finance

The international community will face many challenges in implementing finance in the future, necessitating a solution that balances the goals of finance, integration and consumer protection in the context of global development.

Deputy governor of the State Bank of Vietnam (SBV), Nguyen Thi Hong expressed the sentiment during a speech at the Asia Pacific Forum on Financial Inclusion in Hoi An on July 11-12, stressing that financial inclusion had achieved success in the past, but there were still many problems.

“The international community is still seeking ways to deal with several challenges. The ratio of poor people approaching financial services was still low, while gender inequality and the gap between the rich and the poor is still evident,” Hong said.

She said awareness and education on finance among people needed to be improved, while the legal framework on supervision and protection of consumers was not yet strong enough.

She also added that financial infrastructure and service development lacked investment, especially in the context of booming information technology and global digitalisation.

Hong said the forum, which has been held for seven consecutive years, offered co-operation opportunities, policy dialogues and experience sharing among APEC members in boosting sustainable development and poverty alleviation.

Financial inclusion has been a major focus of many economic and financial forums, including APEC, the United Nations, ASEAN, G20, the World Bank, Asia Development Bank, Organization for Economic Co-operation and Development, and others.

As a host of APEC this year, the State Bank of Vietnam and international partners have selected the topic: “Finance for Agriculture and Rural Development” for this year’s co-operation programme.

The programme will help developing members approach financial inclusion, and seek a sustainable finance solution to narrow the development gap among countries.

The forum will prelude the Financial Ministers Meeting of the 2017 APEC (Asia-Pacific Economic Co-operation) Summit in Hoi An city this October. Also on this occasion, SBV in co-operation with the World Bank and International Finance Corporation will host the 4th meeting on Finance Infrastructure reform in Hoi An on July 12.

JX Nippon Oil & Energy investment in Petrolimex bears fruit in first year

With the pay-out ratio of 32.24 per cent, each shareholder of Vietnam National Petroleum Group (Petrolimex) will receive VND3,224 ($0.14) per share. The petroleum giant will pay a total of VND3.736 trillion ($165.7 million) in cash dividends for 1.16 billion outstanding shares.

JX Nippon Oil & Energy currently holds 103,528,476 PLX shares, accounting for 8 per cent of Petrolimex’s outstanding shares. For this, the foreign strategic investor will receive a cash dividend of VND333.7 billion for 2016, tantamount to $14.8 million.

Following the VND9 billion ($399,000) loss in 2014, the biggest fuel distributor in Vietnam looked to sell between 15 to 25 per cent of its stakes to raise chartered capital and reduce state holding in the group to below 75 per cent.

In April 2016, after nearly two years of negotiations, JX Nippon Oil & Energy officially acquired 8 per cent of Petrolimex’s shares for around ¥20 billion, approximately $183 million.

With Petrolimex’s positive business outcomes following the restructure, JX Nippon Oil & Energy can taste the sweet fruits of its investment after a single year. The dividend payment will take place at the end of August 2017.

The Ministry of Industry and Trade is currently representing the state as a stakeholder, with 75.87 per cent in Petrolimex, equal to 982 million shares. The state is looking at more than VND3.16 trillion ($140.1 million) in dividend payment.

Petrolimex officially listed on the Ho Chi Minh City Stock Exchange (HOSE) on April 21, 2017 at VND43,200 ($1.9) per share. The current price of PLX shares is VND69,000 ($3).

As of December 31, 2016, Petrolimex’s total assets reached VND54.2 trillion, approximately $2.4 billion. Its consolidated net revenue in 2016 was VND123 trillion ($5.46 billion) and pre-tax profit reached VND6.3 trillion, or $279.4 million (up 68 per cent compared to 2015).

Government approves Japanese NYK Group auto carrier venture

The Vietnam government has given its stamp of approval for a new joint venture, dubbed NYK Auto Logistics (Vietnam) to enter into operations in the Southeast Asian country, reports American Shipper.

The joint shipping venture with Vietnam Ocean Shipping Agency Corp, makes Vietnam the 19th country for which the Japanese shipping giant has expanded its footprint, said NYK Group in a written statement.

NYK Group initially proposed the joint venture this past December. The new venture will offer pre-delivery inspection including services such as repairs and parts application for finished vehicles, as well as storage and delivery.

Expanded Thac Mo hydropower plant connects to national grid

The expanded Thac Mo hydropower plant in the southern province of Binh Phuoc connected to the national grid from July 11, according to the Electricity of Vietnam (EVN).

The 75 MW power project cost nearly 1.6 trillion VND (70.4 million USD), 85 percent of which was sponsored by the Japanese Government’s official development assistance and the remaining came from domestic corresponding fund.

The expansion, which began on July 5, 2014, raises the hydropower plant’s capacity from 150 MW to 225 MW. Thus, the plant can contribute 52 million kWh of electricity to the national power grid a year.

The plant will help ensure adequate supply of electricity to fuel economic development in the southern localities and utilize excess water during flood seasons.

The plant will go on a trial basis from July 15 to August 14.

Lao provinces promote investment in HCMC

A conference to promote tourism, investment and trade in three Laos provinces, Savannakhet, Khammouane, and Bolikhamxay, will be held in HCM City on July 19.

A conference to promote tourism, investment and trade in three Laos provinces, Savannakhet, Khammouane, and Bolikhamxay, will be held in HCM City on July 19. 

Leaders of the three provinces will present the advantages and incentives they have to offer foreign investors.

They will list projects in industry, trade, tourism, and services in which they are soliciting investment.

HCM City is home to many businesses and attracts many foreign investors, and so organising the conference in the city would make it easier to seek investment, they explained.

Many such conferences have been organised in the past in HCM City by other Lao provinces, and they would usually attract many Vietnamese and foreign investors.

The conference this month, organised by the Investment and Promotion Centre of HCM City in collaboration with the three provinces, will be held at the Rex Hotel.

Leather exhibition opens in HCM City     

The 19th International Shoes and Leather Exhibition opens today in HCM City, offering local and foreign firms in the leather industry a chance to explore business opportunities.

The 2017 Shoes and Leather Vietnam has attracted more than 700 exhibitors from 30 countries and territories, including Brazil, China, Germany, the US, India, Italy, Japan, Taiwan, Thailand, and Turkey besides host Viet Nam.

They will display chemicals, shoe making and tanning machinery and technologies, leather and other materials, shoe components and accessories, finished products and more.

The Council for Leather Exports of India is participating with 34 member companies to introduce as well as promote their products.

There are 29 Italian producers of machinery and equipment and chemicals used in tanning and shoe production.

According to the Viet Nam Leather and Footwear Association (Lefaso), the event is aimed at enhancing export promotion, soliciting investment and promoting the image of the country’s leather and footwear industry.

It also seeks to help local companies acquire modern technologies, it said.

The expo will be held together with the 19th International Footwear and Leather Products Exhibition, which will showcase trendy and fashionable footwear and leather products and accessories.

Several seminars on the latest technologies and fashion trends in the shoe and leather industries will be held on the sidelines of the expos.

Leather and footwear are among the country’s key export items, fetching US$16.2 billion last year. They are expected to rise to $18 billion this year.

Organised by Lefaso and Top Repute Co., Ltd, the three-day exhibitions at the Saigon Exhibition and Convention Centre in District 7 are expected to receive more than 15,000 visitors.

Hanwha Life reports 60 per cent growth     

Hanwha Life Vietnam has reported almost 60 per cent growth year-on-year in premium income to VND653 billion (US$13.25 million) in the first half of this year.

Back Jong Kook, chairman of the members council and general director of the company, attributed the strong growth to the expansion of the Hanwha’s network across the country and its focus on improving customer service and financial consultancy.

It opened 17 customer service centres in the period, raising the total number to more than 94, and plans to have 100 by the end of this year.

Its parent, Hanwha Group, is among the 10 top conglomerates in South Korea.

Hanwha Group plans to invest in more sectors in Viet Nam, including finance, energy, real estate and office for lease, Back said. 

‘Land fever’ peaks near major airport project in southern Vietnam

While the exact location for the construction of a major airport in southern Vietnam is still pending approval, countless plots of land around the potential venue have been put up for sale.

The feasibility report for the location of Long Thanh International Airport, located in the namesake district in the southern province of Dong Nai, is still being finalized before being submitted to the National Assembly for approval.

Located just 50 kilometers from Ho Chi Minh City’s Tan Son Nhat airport, Long Thanh is expected to alleviate passenger load in the overcrowded southern hub once comlpeted.

The plan to build the airport was ratified by Vietnam’s lawmaking National Assembly in 2015.

A series of land plots surrounding the proposed location for construction have been advertised for sale with countless flyers pasted on nearby utility posts.

Contacting the phone number on one of the leaflets, Tuoi Tre (Youth) newspaper reporters reached a broker named Phu, who offered a 615 square-meter piece of land in Loc An Commune at VND360 million (US$15,807).

“If you don’t buy it right now, the price will be different next month,” Phu urged, adding that the rate rises every day.

In another area, a land project has been open for sale since April, Hien, a marketer employed by the company, said, explaining that each square meter was valued at VND7.9 million (US$346).

About 70 percent of the project had already been purchased, Hien continued, anticipating that the price would be much higher next month.

According to Tran Kiem Hoa, a resident in Binh Son Commune, land prices in the neighborhood are now 30 percent higher than last year.

“In 2015, a piece of land near my house cost about VND2.8 billion [US$122,944] per hectare, the price is now VND4 billion [US$175,635],” Hoa elaborated.

Buyers can scout the area to find themselves the best deals or just search on the Internet, the local man continued.

Hoang, a business owner in Long Thanh District with a broad understanding of local real estate, said that land prices around the future new airport had risen by 20 to 40 percent since the beginning of the year.

Investors from Ho Chi Minh City and the surrounding area have sought investment in these properties in the hope of reaping large profits in the future, Hoang explained.

Local land owners have been taking advantage of loopholes in housing laws to divide their land plots into smaller pieces before selling to various buyers.   

“The situation can get out of control if the relevant authorities do not figure out measures to manage the sale of land in the area,” he warned.

According to an official from the Long Thanh People’s Committee, the ‘land fever’ has become an aching problem for local authorities.

The administration has suggested that relevant ministries establish a specific plan for a 21,000 hectare vicinity around the Long Thanh airport to manage the situation.

Government approves Japanese NYK Group auto carrier venture

The Vietnam government has given its stamp of approval for a new joint venture, dubbed NYK Auto Logistics (Vietnam) to enter into operations in the Southeast Asian country, reports American Shipper.

The joint shipping venture with Vietnam Ocean Shipping Agency Corp, makes Vietnam the 19th country for which the Japanese shipping giant has expanded its footprint, said NYK Group in a written statement.

NYK Group initially proposed the joint venture this past December. The new venture will offer pre-delivery inspection including services such as repairs and parts application for finished vehicles, as well as storage and delivery.

Quang Binh to have first int’l air route

The first international flight between Dong Hoi and Chiang Mai in Thailand is expected to depart on August 11, 2017, said a representative of Jetstar Pacific Airlines at a recent meeting with leaders of Quang Binh central province.

quang binh to have first int’l air route hinh 0 The airlines is gearing up all necessary preparations for the first flight, he said, adding that other flights will be conducted on every Monday and Friday.

Nguyen Huu Hoan, Chair of Quang Binh provincial People’s Committee, spoke highly of Jetstar’s plan, saying that he hopes the international air route will help bring more foreign visitors to the province, contributing to local socio-economic development.

He asked relevant agencies to disseminate information about the air route, especially to travel agents in and outside the province.

The Thai people are currently paying more attention to tourism sites in Vietnam while Thai famous landscapes attract Vietnamese visitors. Now with the air route, it takes just two hours to fly from Chiang Mai to Dong Hoi, instead of two days travelling by road as previously.

Jetstar Pacific launched flights between Dong Hoi and Haiphong in late April.

Vietjet offers discounted tickets on all international routes

Vietjet will kick off its three golden-day promotion, offering 200,000 air tickets priced from zero dollars on Wednesday to celebrate its two newest international routes.

The promotion, which is available at www.vietjetair.com, applies on all international routes from Vietnam to Seoul, Busan (South Korea)/ Hong Kong/ Kaoshiung, Tainan, Taichung and Taipei (Taiwan)/ Singapore/ Bangkok (Thailand)/ Kuala Lumpur (Malaysia)/ Yangon (Myanmar)/ Siem Reap (Cambodia) and for travel between September 1 and December 31.

Vietjet’s new routes connect passengers between Seoul/Busan (South Korea) and Siem Reap (Cambodia), easing the travel of individuals, tourists and businessmen to the famous locations, the airline said in its statement.

The Seoul – Siem Reap route is operated daily with tickets priced from VNĐ1.3 million (US$55) for one way while the daily Busan – Siem Reap route will start from VNĐ1.6 million ($70) for one way.

Earlier on Monday, Vietjet said it has partnered with Vietnam Heritage Photo Awards as a transportation sponsor. This is the 6th edition of the awards in celebration of the 72nd anniversary of President Hồ Chí Minh signing the first decree preserving traditional and national heritages.

“As the awards’ sponsor, Vietjet expects to introduce and bring Vietnam’s cultural and spiritual values to participants, visitors, the youth and international friends. This is a chance for photographers to show their passion for photography and showcase Vietnam’s beautiful country and people,” Vietjet managing director Lưu Đức Khánh said.

The airline will also offer domestic and international tourists free air tickets and exciting gifts when they enter the contest about Vietnam’s heritages.

The awards’s top 100 works will be exhibited online and in three cities of HCM City, Đà Nẵng and Hanoi in late October 2017. Final results will be announced on Vietnam’s Cultural Heritage day on November 23.

Minister praises Viettel for their achievements   

Minister of Science and Technology Chu Ngoc Anh speaks at a meeting with Viettel Group on July 7.

Anh said Viettel had seen amazing growth in the defence industry in the past 10 years. Viettel is Vietnam's biggest IT brand and in the world's top 100 notable firms, he said.

Anh praised Viettel for its desire to expand business overseas and the searches for personalised approaches to various services.

"With the growth of Viettel, we are able to lead and now have about 300 firms using modern technology," he said.

He claimed Viettel will be able to create the core network and transmission network in a near future and had done well in installing the country’s 4G network.

"As a state-owned firm in the defence industry, Viettel has been active and combined economic and defence works seamlessly," he said.

Even though the proposal to use 2% of the total spending for science and technology research has been approved, disbursement is slow. The government is trying to find a way speed up the implementation of new technologies in everyday life.

Anh said they would call for funding, including from Viettel. It already contributed VND4.5trn, about 10% of the profits, to the research fund.

Viettel is also buying 20% stakes in start-up projects. Owners can still maintain and work to develop their project and use the Viettel brand. While revising the law on technology transfer, state agencies have worked and gather opinions from Viettel to make the law and other policies more detailed.

As a leading firm, Viettel has joined in various important programmes and is one of the first companies suggested improving internet security in Vietnam. It became the leader for the national project on network security. The Ministry of Science and Technology will participate to help with policies.

Anh also praised Viettel for its treatments and policies to attract talents and opinions for the Vietnam Academy of Science and Technology. Anh promised that the Ministry of Science and Technology will continue to support Viettel.

HCM City receives US$2.1 bln in remittances in first half

The overseas remittances sent to Ho Chi Minh City through official channels reached US$2.1 billion in the first half, a year-on-year increase of 1%.

Deputy Director of the State Bank of Viet Nam in Ho Chi Minh City Nguyen Hoang Minh stated that the remittances were mainly from the U.S. (accounting for 60%) and the Europe (around 19%).

The Chairman of Ho Chi Minh City’s People’s Committee has approved Singapore’s UOA Investments PTE company to invest around VND1,001 billion (equivalent to US$45.7 million) in developing an office tower in the city.

The project, located on the land area of nearly 3,000 square meters with the total construction area of 37,425 square meters, will be built in District 7.

In the first half of 2017, the real estate sector ranked second in attracting the Foreign Direct Investment in Viet Nam with US$461 million in 39 projects.

HCM City considers building of waste-to-energy plant

Ho Chi Minh City will establish a science council to appraise the results of the experimental project 'Go Cat waste-to-electricity plant' in order to expand the waste-to-electricity plant in the future.

Nguyen Thanh Phong, Chairman of Ho Chi Minh City People's Committee made the statement during a working visit to Hydraulic - Machine Company at the Go Cat solid waste treatment area in Binh Tan district, Ho Chi Minh City, on July 11.

The Go Cat waste-to-electricity plant is the first of its kind in Ho Chi Minh City using made-in-Vietnam technology, which is invested in and run by Hydraulic - Machine Company in co-ordination with the Ho Chi Minh City Urban Environment Company.

Phong said that following the completion of the appraisal of the experimental project, the operation of Go Cat plant must be adjusted to avoid any effect on the environment or the life of the locals.

He also agreed with Hydraulic - Machine's proposal to expand the scale of the plant in the future.

The construction of the experimental Go Cat project was commenced in March 2017 and began operation on April 22, 2017. Currently, the plant is treating non-hazardous industrial waste and turning it into electricity.

The plant has treated approximately 500 tonnes of industrial waste, producing 7MW of electricity. The waste treatment cost is VND1.5 million per tonne and the selling price of electricity is 10.5 cent per kWh of electricity.

Director of Hydraulic - Machine Company, Nguyen Gia Long said that industrial waste is not buried or burned during the treatment process therefore it doesn’t create waste water, bad odours or smoke.

Long noted that the waste-to-electricity technology solution can be implemented on a small scale to create favourable conditions for enterprises to invest in building plants of this type. In addition, the plant can be built in a small scale in communes and districts to address the problem of waste and to prevent the movement of waste from the urban areas to rural areas.

The waste-to-electricity technology was invented by Director of Hydraulic - Machine Company Nguyen Gia Long in 2013 and has been successfully applied at the Dong Van industrial zone in Ha Nam province.

HCM City hotel prices drop

Revenues in the second quarter have averagely decreased 3 percent; earnings for a year have averagely declined 7 percent to US$78/room/night because of the competitive pressure.

Meanwhile the booking capacity sees an increase, showing a significant improvement.

Savills’ report said that Ho Chi Minh City received 2.8 million international visitors in the second quarter, accounting for 46 percent of 2017 target.

The city has seen 133 hotels with 16,500 rooms and is expected to be add more about 3,200 rooms in the third quarter of this year.

Congestion reduction projects around TSN airport remain stuck

The urgent projects for reducing traffic congestion and increasing mobility around Tan Son Nhat International Airport have yet to get off the ground, heard a working session on July 10 between the Transport Ministry and the HCMC government.

The first project is to build a road passing through 6.65 hectares of military land and running in parallel with Cong Hoa Street at a cost of an estimated VND1.42 trillion (US$62.8 million). According to a HCMC Transport Department report, the road is divided into three sections with a width of around 20 meters.

The first 2.1-kilometer section from Tran Quoc Hoan to Hoang Hoa Tham streets got the go-ahead from the Defense Ministry in February this year.

The second section with a length of around 850 meters from Hoang Hoa Tham Street to a property development site of C.T Land is expected to run in parallel with a new fence of the airport while the last section adjacent to the fence is around 620 meters long. They all got the nod from the ministries of transport and defense.

Lai Xuan Thanh, chairman of the Airports Corporation of Vietnam, said the first two sections had been approved and the Defense Ministry had agreed to hand over land. However, the last section is feared to threaten flight safety as it is near the fence in a runway protection zone.

Meanwhile, another urgent project is to develop a 1.3-hectare lake responsible for storing rainwater at the airport. In an official letter dated February 10, the Defense Ministry agreed in principle to transfer its land to the Transport Ministry to build the lake.

Nonetheless, Thanh said, the project cannot be implemented as it is included in the process of revising the master zoning plan for the airport which has yet to be approved.

City vice chairman Le Van Khoa proposed the Transport Ministry speed up construction of the lake to cope with airport flooding and find ways to build new entrances to the airport on Thong Nhat Street and other roads, besides the just approved entrance on Hoang Hoa Tham Street. Tan Son Nhat airport now has only one entrance on Truong Son Street, which is always congested at rush hour.

Transport Minister Truong Quang Nghia promised to remove these obstacles in a bid to step  up work on these projects.

Shopee in strategic deal with FPT Trading

The electronic commerce website Shopee.vn on July 10 signed a strategic cooperation agreement with FPT Trading Company to expand online sales of electronic goods.

Tran Tuan Anh, Shopee director of finance and operation, said male buyers on shopee.vn are on the rise, so it reached a strategic cooperation deal with FPT Trading, one of Vietnam’s biggest electronics goods distributors, to expand sales.

More than 50% of Shopee male customers have bought high-value products such as smartphones, smart watches and fitness trackers.

In just one year of operation, Shopee Vietnam has become a major player on the e-commerce market in Vientam. The cooperation deal with this platform will help FPT Trading gain more customers, said Bui Ngoc Khanh, general director of FPT Trading.

More people use their mobile devices to do the shopping.

Shopee also cooperates with cellphone distributors to offer the best prices for their customers.

Shopee is one of the biggest electronic commerce platforms in Southeast Asia and Taiwan. Their mobile app has been downloaded more than 40 million times with annual gross merchandise volume worth more than US$3 billion.

In Vietnam, Shopee mobile app has been downloaded more than five million times and Shopee emerged as one of the biggest electronic commerce platforms in 2016. Shopee is invested by SEA, the biggest Internet platform provider in Southeast Asia based in Singapore and previously known as Garena.

Guangxi seeks to woo Vietnamese tourists

The Chinese province of Guangxi is implementing multiple programs to introduce its tourism products to Vietnamese customers as more and more Vietnamese have come to the province.

Last year, 482,000 Vietnamese people visited Guangxi, accounting for 39% of all tourists from ASEAN countries.

The province on July 10 organized an event to introduce Guangxi tourism and a Chinese tourism night in HCMC. These events were aimed at bringing more visitors to the province, said Gan Lin, director general of the Guangxi Tourism Development Commission.

Guangxi has launched scheduled flights between Nanning Airport and Tan Son Nhat International Airport in HCMC. Chinese firms want to cooperate with partners in HCMC to boost tourist arrivals to both localities.

The number of tourists from Guangxi to HCMC represents 90% of its visitors to ASEAN countries, said Gan.

La Quoc Khanh, deputy director of the HCMC Department of Tourism, said more than 178,000 Chinese visited the city in the first four months of 2017. The department has proposed China streamline visa application procedures to promote tourism development.

There are three weekly flights between HCMC and Nanning.

South Korea in tourism promotion deal with HCMC

The South Korean Consulate General in HCMC, the HCMC Tourism Promotion Center, the Korea Tourism Organization (KTO) in Vietnam and 20 travel firms have signed a memorandum of understanding (MOU) on cooperation to promote tourism ties between Korea and HCMC.

A statement, which the Korean consulate sent to the Daily last week, says the MOU signing ceremony took place at a time when the two countries are celebrating the 25th anniversary of the establishment of diplomatic ties.

Under the deal, the Korean consulate will simplify visa issuance procedures starting from on July 10, making it convenient for tourists to travel to the Northeast Asian country. In addition, the cooperation is aimed at boosting tourist arrivals between Korea and HCMC. 

The two sides are committed to sharing relevant information to strengthen tourism exchange between the two sides.

The signing ceremony was witnessed by Park Noh Wan, Consul General of the Republic of Korea in HCMC, Jung Chang Wook from KTO in Vietnam, Le Truong Hien Hoa, director of the tourism center, and other representatives.

According to a report from the Vietnam National Administration of Tourism (VNAT), international tourist arrivals to the country in the first six months amounted to 6.2 million, an increase in 30.2% against the same period last year. Meanwhile, the number of South Korean tourists to the country has surged 43.9% from the year-ago period to 1.06 million.

VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNE/VET