RIMOWA wins brand related court case

RIMOWA, one of Europe's leading manufacturers of premium travel and carry-on luggage made of aluminum and polycarbonate, has just won legal proceedings against the proprietor of the ‘Rowana’ brand, thus laying down another marker in the realm of trademark  defense.

The IP Court in Taipei recognised RIMOWA as a well-known brand that is under special protection. The recent court judgment declared that the logo of the opposing party was inspired by the RIMOWA logo.

This was believed to cause confusion amongst customers, which could in turn weaken the trademark of the better known brand, RIMOWA. Accordingly, the court ordered the company to cease to use the Rowana logo with an oval frame and to pay RIMOWA damages of TWD3,357,000 (approximately $102,120).

RIMOWA sees this result as a clear victory in the battle against the violation of industrial property rights, which it will continue to fight in the future.

The groove design is also a distinguishing feature of the brand which, thanks to the successful marketing strategy, has already gained significant renown. RIMOWA also continues to defend this core part of its brand identity against infringers.

RIMOWA recently launched a new and limited addition to its existing line-up of ultra lightweight yet super durable luggage: The Autumn Salsa Deluxe.

Exclusively at flagship store locations in Canada and the United States, the beautiful warm olive green colour reminds us of the late summer and early fall weather.

Gorgeous RIMOWA Salsa Deluxe suitcase series use high-quality polycarbonate shell to create extremely durable, and with elegant and functional interior design.

Hoa Cam IZ's logistics centre to help investors

Transfor-warding Warehousing Joint-Stock Corp, or Transimex-Sai Gon, has officially put into operation the first international standard logistics centre in Hoa Cam Industrial Zone (IZ).

The move is seen as providing needed services for investors, exporters and importers in the central region – after five months of construction.

Director of the Transimex-Sai Gon Da Nang, Nguyen Tan Man, told Viet Nam News that the 16,200sq.m centre includes a 9,300sq.m general warehouse with an automatic cargo forklift and loading system for importers             

He said the centre, built at a cost of VND50 billion (US$2.4 million), will also act as a distribution hub of consumer goods for the central and Central Highlands regions.

The centre will help distribute consumer goods from central Quang Nam, Ha Tinh, Quang Binh provinces, and northern Bac Ninh Province to supermarkets in business hubs in the central region.

The 137 hectares Hoa Cam IZ, 20km southwest of the city, has attracted 55 businesses and is 81 per cent occupied.

It also connects the East-West Economic Corridor, which links Myanmar, Thailand, Laos and Viet Nam, and a system of deep sea ports at Tien Sa and Lien Chieu, as well as airports.

The central city also plans to receive a boost as a centre of hi-tech industries, logistics service and tourism in central Viet Nam.

The city has 100 logistics companies, but only five are members of the Viet Nam Logistics Association.

Last year, Transimex-Sai Gon invested VND600 billion (US$28.5 million) to build a bonded warehouse and logistics service project on 10ha in Sai Gon Hi-tech Park.

As scheduled, Transimex-Sai Gon will develop a cold storage system in the IZ to provide services for seafood exporters.

Kerry Logistics Company from Singapore also opened its new logistics centre in the city in 2010.

Phu Yen sees tourism bud

Phu Yen province is striving to become a unique tourism centre in Vietnam by 2025.

Located in the central part of Vietnam, the province has some 20 natural and historical tourist attractions, including the Da Dia rapids and Tu Nham beach. Despite the area’s myriad of beaches, mountains, and forests, Phu Yen’s tourism sector has yet to make the most of its natural gifts.

Tran Quang Nhat, Deputy Chairman of the Phu Yen People’s Committee, noted that the key to the province’s tourism growth laid in focused investments that would ensure swift and sustainable development in the future.

The focused investments, according to Nhat, will be utilised in the province’s national landscapes and relics, to facilitate competitive natural resources in terms of beaches, islands and forests. While calling for mass investments in the central region, Phu Yen, at the same time, is committed to maintaining its cultural values and provincial features.

“By 2020, Phu Yen will make every effort for the sites of the Xuan Dai bay, Cu Mong lagoon, Tu Nham beach, and Da Dia rapids to be recognised as national tourism areas. We’ll also continue rapid and sustainable development, and by 2020, the province’s tourism is expected to account for 7.2 per cent of our GDP,” Nhat stressed.

Phu Yen’s future plan for international tourists looks to Northeast Asian countries like Japan and Korea, and Southeast Asian nations such as Cambodia, Laos and Thailand. In addition, the province will also pay great attention to the US, Western Europe and Australian markets.

Local markets, including Hanoi and Ho Chi Minh City, the Mekong Delta, and the surrounding areas of the central region, will continue serving as Phu Yen’s primary markets.

Phu Yen’s critical tourism products include beach resorts and sightseeing tours that are situated in local cultural and historical areas. Moreover, local culture, in particular, will go hand in hand with local cuisine, craft villages, and spiritual sites, to enhance Phu Yen’s tourism.

The beach resort segment will be developed chiefly in the areas of Tuy Hoa city and Xuan Dai bay, Cu Mong lagoon, Tu Nham beach and Da Dia rapids. The beach resorts will be positioned in distinctive areas and far away from the socio-economic centre, to guarantee privacy and tranquility. In addition, a cruise centre will also be built close to the resort area to facilitate sailing and other water sports.

Ecological tourism, on the other hand, will be situated around the Van Hoa highlands and the Hinh river. Phu Yen will prioritise investments made in the ecological tourism complex in the Hon Nua island, which, once completed, will add adventure sports such as scuba-diving and mountain climbing to its list of sport and outdoor activities.

The local authorities have long known the province’s strengths in tourism, and desired to give Phu Yen the boost it needs to move forward and become a clean and green tourism hub for both local and international visitors, and at the same time, establish the tourism industry as Phu Yen’s leading economic sector.

Ninh Thuan taps potential for tourism and wind power

The central province of Ninh Thuan has become a magnet for tourism and wind power investors, thanks to its favourable geological location and vast potential.

Dr Tran Du Lich, head of a consulting group for the central coastal region, said that with its long coastline, far-reaching sand dunes, mountainous seascape, and lively bat population, Ninh Thuan has been an ideal location for the development of eco-tourism projects.

Home to many stunning landscapes, such as Ninh Chu beach, one of the nine most beautiful beaches in Vietnam, the Ngoan Muc pass, Vinh Hy Bay, Nam Cuong red sand dunes, and the Cham tower complex, as well as a number of historical and cultural relics, Ninh Thuan has a considerable edge in promoting its investment opportunities.

“The Vinh Hy bay, one of the country’s four most beautiful bays with unspoiled natural scenery, is located in the “tourism triangle” of Vietnam, alongside the cities of Nha Trang and Dalat. With natural landscapes of desert cactii, blue sea, and legendary Cham architecture, the bay is a very attractive destination for tourists who enjoy adventure. As such, the province should make use of its advantages to develop international tourism complexes,” Lich suggested.

Le Thi Thanh Thuy, director of the Ninh Thuan Economic Development Office, said that “The province has licensed several tourism property projects. Many are under construction, and we expect to attract more in the coming months.”

According to Thuy, most recently, Syrena Vietnam, under BIM Group, surveyed the opportunities of investing in a 5-star Vinh Huy resort project in Vinh Hai commune in Ninh Hau district. Costing an estimated $60-80 million, the Vinh Huy resort project will cover around 66.8 hectares. It will be home to 60 pool villas, 40 guest pavilions, restaurants, and other entertainment facilities. The investor plans to put the project into operation in the next 36 months.

Thuy added that the greatest potential in Ninh Thuan was the development of wind energy projects. As a wind energy hub in Vietnam, the province has licensed many investors to develop wind-to-power plants here. For example, in mid-2014, Power Generation Corporation 2, under the country’s state-run Electricity of Vietnam (EVN), kicked off the Cong Hai 1 wind-to-power project in Suoi Gieng hamlet in Cong Hai commune. The project, costing over VND1.5 trillion ($69.76 million), is being constructed over two phases.

To date, Ninh Thuan has had plans for 12 wind-to-power projects, many of which have already been licensed. They include the Phuoc Nam renewable energy project, Enfinity, Mui Dinh and Cong Hai wind-to-power projects.

The prime minister has approved a master plan on wind energy development for the 2014-2018 period, with the total investment of EUR3.7 million ($4.2 million), using official development assistance (ODA) from the German government. This would create more opportunities for Ninh Thuan to tap into its vast  potential.

Consortium gets yellow card for expressway delay

The investor and the oversight body have just received a ‘yellow card’ from the transport authority for poor performance on the Trung Luong-My Thuan expressway project in the southern region.

Deputy Minister of Transport Nguyen Van The recently issued a warning towards the project’s related parties at a meeting to review the progress of this major southwestern highway, as the parties had failed to meet most of their progress targets on capital contribution and land acquisition.

Six months after re-launching, the investor consortium at the Trung Luong-My Thuan expressway project has still fallen short of their capital contribution commitment, as regulated in the build-operate-transfer (BOT) contract.

The investor is a consortium consisting of Tuan Loc Investment Construction JSC, Yen Khanh Production and Trade Services Company Limited, BMT Construction Investment JSC, Thang Loi Group Limited, and Hoang An JSC.

According to a recent report submitted by the Cuu Long Corporation for Investment, Development, and Project Management of Infrastructure (Cuu Long CIPM), late last month, the project enterprise Trung Luong-My Thuan BOT Company could only contribute 91 per cent of the required equity capital, amounting to VND1.408 trillion ($64.5 million) out of VND1.542 trillion ($70.7 million).

Cuu Long CIPM was tasked by the Ministry of Transport (MoT) to act as the project oversight body.

“The project has been resumed for over six months now, but to date, we have yet to receive any report from the investor about their commitment to fulfilling capital contribution as required in the BOT contract,” said Duong Tuan Minh, general director of Cuu Long CIPM.

In the past three months, Cuu Long CIPM had sent documents several times requiring the investor to submit a proof (the project enterprise bank account surplus) as a confirmation of the latter’s commitment to fulfilling their [capital pooling] obligation, but there was no response.

Not only did the investor fail in their capital pooling commitment, the project oversight body - Cuu Long CIPM - has also missed their target of finalising compensation and land   acquisition before August 15, 2015 as required by the MoT.

“Many projects are being developed in the area, making it hard for us to concentrate sufficient manpower on implementing this project’s site clearance work,” said a source from Cuu Long CIPM.

Deputy Minister of Transport Nguyen Van The assumed the less-effective management of the project enterprise and the oversight body had caused such delays.

In respect to site clearance, The has asked the Trung Luong-My Thuan BOT Company and Cuu Long CIPM to work closely with local authorities to ensure completion of this phase before the end of this year.

As for the project’s pace, The has required the Transport Construction and Quality Management Bureau under the MoT to evaluate the project record and prepare a plan to replace the project oversight body, in case no progress was reported in the upcoming time.

“The oversight body and the Trung Luong-My Thuan BOT management board both lack professionalism. Meanwhile, the investor also needs to change their management approach. The MoT will apply strong measures in case of no improvements,” The noted.

The Trung Luong-My Thuan expressway project involves building a 51km highway and 4.5km approach road at a total investment capital of VND14.6 trillion ($673 million) under the BOT form.

The project construction, initially kicked off by the Expressway Investment Development Joint Stock Company under state-owned Bank for Investment and Development of Vietnam (BIDV) in November 2009, became suspended due to the investor facing capital constraints. It was resumed in February this year.

Resort properties charm investment to northern region

As resort properties have proven a busy segment since the beginning of this year, projects that integrate life values and promise excellent profitability will become magnets for investment.

Seeing the great opportunities in the country's northern region, where resort property projects are not as abundant as in the central and southern regions, many developers have poured money into the segment and the market reaction has not let them down.

Joining the race in the northern resort property market, the BIM Group recently introduced Van Lien (Lotus Residences), a luxury resort townhouse project in the prime location of the Halong Marina urban area in Quang Ninh province's Ha Long City.

The project, since its first sale in June, has attracted a slew of investors and recorded a considerable number of purchases after two sale rounds.

Syrena Vietnam, a subsidiary of the BIM Group that focuses on property and tourism development, said the project's attraction lies in the integration of the core values of life and investment, its prime location in the northeastern province of Quang Ninh, one of the most attractive tourist destinations in the north that hosts Ha Long Bay- a world wonder, along with a well-developed infrastructure and good connectivity.

Quang Ninh was also regarded as the busiest resort property market in the northern region, given its natural advantages and prominent socio-economic conditions. It is reflected in the presence of numerous projects, worth billions of US dollars, of major players such as the BIM Group, the Sun Group, Vingroup and FLC, as well as the CEO Group and Tuan Chau.

In addition, more reasonable prices and equivalent profitability, when compared with resort properties in the country's central region, also make the resort properties in Quang Ninh appealing to investors and drive many of them, especially those from Hanoi and the neighbouring provinces and cities, to make purchase decisions.

Buying a resort property is considered a good decision for investors amid the recovery of the property market after a prolonged hibernation, as the asset is not only their second home, providing them opportunities to enjoy life in a natural environment and with luxurious amenities, but also a safe investment in the long run.

The BIM Group guarantees a combined profit of up to VND1.7 trillion ($78,000), or 24 per cent of the townhouse's value at Lotus Residences, in the first three years of operation under the ‘rental pool’ management scheme.

From the fourth year, the townhouse owners will receive 65 per cent of leasing profits, together with 60 days of accommodation for free (estimated to worth VND300 million ($13,750) per year.

Rental pool is a popular management model followed in resort projects, but applied for the first time in Lotus Residences in Ha long City, in which the parties involved share rental income from a property as well as the expenses associated with its ownership and maintenance.

Amid the recovery of the property market with an abundant choice of projects as investments, industry experts said investors now consider many factors such as location, price, quality and profitability, as well as developers' capacity and prestige, before giving any purchase decisions.

The BIM Group and G5 Property Trading Floor Alliance – the official distributor of Lotus Residences – will jointly open sales of Lotus Residence townhouses in Hanoi on September 12 and in Quang Ninh on September 20.

Lotus Residences, one of high-profile projects of the BIM Group that possesses a vast portfolio of residential, commercial, hotel and resort projects in Ha Long, Phu Quoc and Laos, is considered a good choice in the northern property market.

The previous sale rounds of Lotus Residences in June and August scored the attention of a great many buyers.

Covering 40,000sq.m along Ha Long Beach in the prime location of the Halong Marina urban area, the project will comprise 159 four-storey townhouses designed to harmonise retail, tourism and living purposes, together with high-end amenities such as an all-season swimming pool, modern gym, park and playground. Its construction kicked-off in the middle of May and is expected to be finalised within 14 months.

Revised law on foreign property ownership has issues to iron out

The Ho Chi Minh City Real Estate Association made suggestions to the Ministry of Construction and related ministries, which are currently drafting decrees to guide the recent revised Laws on Housing and Real Estate Businesses.

The association proposed easing the maximum limitation of houses owned by foreigners within a certain project. In addition, they suggested raising the ownership duration, and crucially, extended visas for foreign property owners in Vietnam.

The main concern from the Ho Chi Minh City Real Estate Association (HOREA) related to the limitation of houses owned by foreigners in a certain project. The revised law stipulates that foreigners are allowed to buy a maximum of 30 per cent of total units in a certain project, or less than 250 houses in every commune. In cases where there are a very high number of apartment buildings in a commune, the percentage of apartments legally available to foreigners will be decided by the government.

This limitation, HOREA said, should be eased in localities where many foreigners currently reside, such as Hanoi, Ho Chi Minh City, Danang, Khanh Hoa, Quang Ninh, Haiphong, Binh Duong, Dong Nai, Ba Ria – Vung Tau, Binh Thuan, and Kien Giang.

In a statement from HOREA, the association said, “We propose that the government and various ministries ease this limitation to create more favourable conditions for local authorities in implementing the revised laws.”

This limitation, it said, could be assigned to the local people's committee to decide how many per cent of their area should be occupied by foreigners.

The revised laws also stipulate that foreigners would have ownership of their house for a 50-year period only, and, should the house be sold on, the new owners would only retain ownership for the remainder of the initial 50-year limit.

HOREA stated that this issue was not suitable and suggested that the time limit be renewed when the house is transferred to the new owner. In addition, HOREA requested that the government clearly point out the areas where foreigners are not allowed to buy housing due to national security concerns.

The association also asked the Ministry of Construction and the State Bank to map out the regulations for foreigners to transfer their money or get loans from banks to buy a property in Vietnam. They stressed that the regulation to transfer their money to abroad after selling the house must also be perfectly clear.

Regarding the granting of visas, the association suggested visas from one to three years for foreigners who buy a house in Vietnam.

HCM City beefs up supply chain planning

Local manufacturers have continued to struggle to find a toehold in the global supply chain as lacklustre economic statistics paint a picture that most lack even nominal capacity to compete in the international marketplace.

Many were duped in the past into thinking that lower labour costs and a young workforce would virtually guarantee them a place in the global supply chain as international brand manufacturers relocated to Vietnam.

However most relocating brands have retained their foreign supply chains, including many in China, and have been efficiently producing products with high added value and profitably exporting them to foreign markets.

The most recent trade statistics from the General Statistics Office (GSO) showed the trade surplus for foreign invested manufacturers in the eight months leading to September was US$9.4 billion.

This stood in stark contrast to the dismal US$13 billion trade deficit for local manufacturers for the same eight month period.

Noteworthy is the forecast by many economists that the continued success of these foreign manufacturers is not tied to benefits of free trade agreements that Vietnam has recently entered into.

These manufacturers could, if they so choose, continue with their foreign supply chains, forget about complying with the rules of origin or other free trade provisions, forego tariff reductions and remain competitive and profitable in the global marketplace.

However, the Ho Chi Minh City People’s Committee is bent on making breakthroughs for local manufacturers over the long term and is stepping up its planning to break into the support industry.

In connection therewith it has undertaken a survey to look in detail at six specific industries and use the results to lay out an effective strategy through 2025, said Vice Rector Nguyen Trong Hoai of the University of Economics in HCM City.

Currently, though foreign manufacturers have created tens of thousands of good paying jobs for HCM City, local companies have only been competing in labour intensive packaging and labelling industries at the very bottom rungs of the value chain ladder.

However, with a thorough in depth understanding of the key industry needs, and well thought plans, Vice Rector Hoai believes local companies can reinvent themselves, adapt and successfully compete for more lucrative positions up the supply chain ladder.

Local manufacturers will need to develop higher levels of skills in their workforces, pump up investment, plunge more dollars into research and development, and design more innovative products targeting very specific needs.

Our goal is to not leave any stone unturned and lay out a detailed roadmap individualized for each of the six key industries – mechanical engineering, information technology, plastics, food processing, apparel and textile, and footwear – said Vice Rector Hoai.

Japanese enterprise to develop cattle farms

Representatives of a Japanese enterprise met authorities from the Mekong Delta City of Can Tho on September 8 to discuss the development of a cattle-rearing project in Song Hau plantation.

The Japanese Beef Import-Export Association (J-BIX) is expected to decide the final investment amount upon the completion of their survey in December this year.

Director of Overseas Markets of J-BIX Nakashima said the project aimed to develop both beef and dairy farms.

It will ensure high-quality and high-yield breeding cows in tandem with clean and healthy feed for the herds.

Technology will be utilised in farming and processing to meet international food safety standards.

The company will also devise environment-friendly and advanced approaches to farm waste treatment, while enhancing farming efficiency.

During the meeting, Vice-Chairman of the Can Tho People's Committee Dao Anh Dung said the Song Hau plantation should work closely with the Japanese firm to implement the project effectively.

The project was expected to create jobs for local residents and contribute to local socio-economic development, Dung said.

In 2014, the city had only about 3,500 cows being raised by individuals.

VEPR identifies issues for livestock from TPP and AEC

On September 9 the Vietnam Institute for Economic and Policy Research (VEPR) released the results of its “Impacts of the Trans-Pacific Partnership (TPP) and the ASEAN Economic Community (AEC) on Vietnam’s Livestock Sector” research.

Because the content of the TPP remains confidential the research was based on scenarios that include tariff removals within TPP and AEC countries and a scenario of +/- 7 per cent reductions in non-tariff barriers in TPP and AEC countries.

The research showed that Vietnam’s livestock sector is characterized by small-scale, a dependence upon imports, a prevalence of disease, environmental issues, and low sanitary standards, and suffers from weak links, resulting in low productivity and competitiveness and a disadvantageous position in trade.

It also pointed out the significant impacts on the country’s livestock sector from both the TPP and the AEC.

Domestic production will shrink due to competition from TPP partners, especially the meat sector. Customers and importers will benefit from integration while producers and exporters will suffer due to competition from imports.

Lastly, trade flows will change depending on the extent of tariff removals, as Vietnam will move away from US milk powder and dairy to New Zealand products and shift towards importing Australian livestock and US meat.

The research analyzed Vietnam’s dairy and beef sector because after Vietnam joins the TPP and the AEC, productivity in the livestock sector will decline and the sector’s workforce will be less in number, moving to other sectors.

The research also suggested certain policy changes, relating to improving production scales, compensating for losses in tax revenue, and supporting research and training to apply technology in the sector.

Those at the press conference for the release of the research acknowledged the results of the research and the difficulties the livestock sector will face from Vietnam’s international integration, but some believed the research sample should have been broadened to increase the reliability of the results.

Evaluation made on customs procedures

The General Department of Vietnam Customs, in collaboration with the Governance for Inclusive Growth (GIG) program of the US Agency for International Development (USAID), held a consultative meeting in Hanoi on September 8 to review and evaluate the implementation of the Law on Customs 2014 and guiding documents.

Addressing the conference, Deputy Director of the Customs’ Supervision and Management Division, Mr. Au Anh Tuan, said that the implementation of the Law on Customs impacted significantly on the import and export activities of businesses as well as customs operations. Procedures for imported goods are being continually simplified with vouchers to be submitted and presented to customs authorities and time saved when completing procedures.

According to Mr. Pete Faust, an international expert on trade facilitation at the GIG project, the Law on Customs is considered a positive reform that has adopted modern management practices according to international rules and agreements Vietnam has signed to promote economic growth. He also said that Vietnam Customs has changed considerably to facilitate commercial activities.

However, the process of implementing the Law on Customs and guiding documents also faced certain obstacles, mostly from infrastructure systems being incompatible with the requirements of the new law. Most enterprises agreed that implementation was not unified between customs units and that procedures for tax rebates and exemptions remain complicated. Businesses also faced difficulties in declaring container codes at the time of export declarations.

According to Mr. Pham Thanh Binh, a consultant on the GIG project, 94 per cent of surveyed enterprises positively evaluated the development of policies and laws on customs over recent years. They assessed the Vietnam Automated Cargo Clearance System (VNACCS) highly but believed related documents were often too lengthy. For example, Circular No. 38/2015/TT-BTC runs to more than 200 pages while Dispatch No. 6330/TTHQ-GSQL is nearly 100 pages. Additionally, many recently-issued documents have already come into effect but enterprises had little time to study them beforehand.

Notably, many major export items of Vietnam were being strictly checked, such as cashew nuts, which undergo there types of tests, on quality, food safety, and quarantine. Seafood and milk and dairy exports also face thorough inspections.

A similar meeting will be held in Ho Chi Minh City on September 10.

Government again pushes SOE equitization

The Office of the Government has requested ministries and government and provincial agencies expeditiously complete mechanisms and policies on the restructuring of State-owned enterprises, following a recent resolution from the regular government meeting.

Related ministries have been requested to quickly resolve issues in the SOE equitization process and complete the guidelines for the new Corporate Law, Investment Law, and Law on Investment of State Capital in Enterprises.

The government seeks a focus on implementing effective solutions to guarantee SOE equitization proceeds on schedule this year. It also requested further appraisal and additional equitization of agriculture and forestry SOEs that have the potential to be converted into joint stock companies.

It assigned the Ministry of Finance (MoF) to review, classify and prepare a list of SOEs that need to divest from the fields of real estate, insurance, securities, and others, and to report to Prime Minister Nguyen Tan Dung no later than the end of this month.

The government also assigned the Steering Committee for Enterprise Restructuring and Development to strengthen inspections and push and monitor the implementation of the equitization process. The Steering Committee must report on obstacles and difficulties to appropriate authorities for handling.

Customs earns $7.6 billion for State budget in Jan-Aug

The customs sector contributed VND170.8 trillion ($7.6 billion) to the State budget in the first eight months of the year, representing 65.7 per cent of the 2015 target, according to the General Department of Vietnam Customs.

The customs departments of Ho Chi Minh City, Hai Phong, Ba Ria Vung Tau, Hanoi, and Quang Ninh accounted for more than 73 per cent of the contribution to the State budget.

Ho Chi Minh City’s customs department led the way, with VND61.6 trillion ($2.74 billion) in the first eight months, or 59 per cent of its 2015 target.

Hai Phong contributed VND29.6 trillion ($1.3 billion), or 70.6 per cent of its annual target, while Ba Ria Vung Tau forwarded VND12 trillion ($534.1 million), or 48.5 per cent of its annual target.

Hanoi and Quang Ninh provided VND11.2 trillion ($498.5 million) and VND10.4 trillion ($463.7 million) to the State budget, respectively, representing 70.8 per cent and 52.6 per cent of their annual plans.

Transport infrastructure needs private investment

Solutions to improve the use of investment and attract investors to transport infrastructure projects are being sought as financial resources from the State budget, official development assistance (ODA), and government bonds have become limited, together with concerns over public debt.

Acknowledging the importance of seeking investment for Vietnam’s infrastructure, the Bank for Investment and Development of Vietnam (BIDV) cooperated with the Central Committee’s Commission for Economic Affairs to hold a conference on September 7 entitled “Capital for Transport Infrastructure: Demand and Solutions”.

According Mr. Nguyen Danh Huy, Director of the PPP Department at the Ministry of Transport (MoT), a ministry report showed that total demand for investment in transport infrastructure in the 2016-2020 period is around VND1,000 trillion ($44.51 billion), coming from government bonds (VND376 trillion, or $16.73 billion), accounting for 37.2 per cent, ODA (VND285 trillion, or $12.68 billion), accounting for 28.2 per cent, and funding from private investment (VND348 trillion, or $15.48 billion), accounting for 34.4 per cent.

However, the plan on public investment in the 2016-2020 period from the Ministry of Planning and Investment indicated that the budget could only cover about 7 per cent of demand, or VND66 trillion ($2.93 billion). Public-private partnerships (PPPs) will therefore play a crucial role.

In order to use the investment for transport infrastructure efficiently and to encourage the participation of the private sector, Mr. Tran Dinh Thien, Director of the Vietnam Institute of Economics, said that initially Vietnam needs a detailed plan for developing infrastructure. This must include matters such as better connecting Vietnam to the Greater Mekong Sub-Region (GMS) and ASEAN by roads, railways, shipping and air, instead of only focusing on connecting with China and the GMS by existing transport networks.

Mr. Tran Bac Ha, Chairman of BIDV, said that credit for transport infrastructure investment in 2020 will account for 3.2 per cent of all credit in the economy (assuming average annual credit growth of 15 per cent). Regarding disbursement, he pointed out that the ratio of short-term capital to long-term lending of the banking sector must be controlled at less than 60 per cent.

Uber launches breath test campaign

Vietnam becomes the second country in the world, after Canada, to adopt UberSAFE technology, Mr. Dang Viet Dung, the Hanoi General Manager at Uber, said at a signing ceremony for a long-term strategic partnership with the National Transportation Safety Committee (NTSC) on September 9 in Hanoi. The partnership aims to raise awareness about the dangers of driving under the influence (DUI) and work towards reducing incidents of drink driving through a first-of-its-kind campaign called “Life, Above All”.

UberSAFE is an innovative breathalyzer kiosk that can measure alcohol levels by blowing through a disposable straw. If the level is above the legal limit the kiosk can automatically book an Uber ride for the person and take them home safely for free. “In Hanoi and Ho Chi Minh City there are 26 participating venues where customers can drink responsibly by leaving their cars at home and choosing to get home safely with free rides from Uber,” Mr. Dung said.

As a result of the government’s efforts there was a decline in deaths relating to drink driving in 2014, to less than 9,000, according to the Executive Deputy Chairman of NTSC, Mr. Khuat Viet Hung.

In the first six months of 2015 there was also a 12.85 per cent decline in road fatalities from drink driving compared to the same period last year. “This impressive result is due to the government’s safety campaign, and we are excited to partner with a proactive technology company like Uber to introduce a creative and innovative campaign to continue to make Vietnam safer,” Mr. Hung said.

The “Life, Above All” campaign will roll out across Hanoi and Ho Chi Minh City using billboards, leaflets, advertisements, and on-the-ground activities to raise awareness of the risks and consequences of drink driving and the need to drink responsibly.

Key activities include the UberSAFE program, training workshops for drivers and partners in Hanoi and Ho Chi Minh City, and communications programs.

$920 million invested in Thua Thien Hue IPs

The six industrial parks in central Thua Thien Hue province have attracted a total of 92 investment projects with capital of VND19.6 trillion ($920.2 million) since their establishment, according to the Communist Party of Vietnam Portal, of which 70 projects belong to local investors and 22 projects are in foreign investment.

The province continued to build infrastructure to attract investment in industrial parks and aims to receive VND2.5 trillion to VND3 trillion ($117.4 million to $140.8 million) this year.

Thua Thien Hue province is implementing many preferential policies for investment in its industrial parks. For example, it will provide support of VND1 million ($46.5) per person for training courses for local workers in the first three years of operations. These projects must also employ a regular 200 workers on contracts of at least one year and pay social insurance as prescribed. Projects in infrastructure and industrial park construction will receive support relating to travel expenses to participate in foreign investment promotion activities under the province’s investment promotion plan, with support not exceeding VND50 million ($2,347) per enterprise for each trip.

The Phu Bai Industrial Park has attracted about 50 investment projects focusing on key areas such as yarn, garments, wooden handicrafts, building materials, ceramics, furniture, and beverages. One notable project is the expansion to the production line at the Phu An Yarn Company, with total investment of VND358 billion ($16.8 million). Phu Bai has a total area of 743.47 ha and is divided into four phases. The first three phases built technical infrastructure to meet the needs of investors. Infrastructure upgrades and expansions to the industrial park in the fourth phase, on a total area of 150 ha, have been invested by Trung Quy Investment Company and some 50 per cent is completed.

In the first eight months of the year revenue from production at industrial parks in Thua Thien Hue province reached over VND7.6 trillion ($357.8 million), an increase of 18 per cent. Export value was nearly VND329 billion ($15.4 million), up 22.7 per cent. Enterprises at its industrial parks were employing 17,850 workers.

Social media influencing sales

The “PR & Marketing in the Digital Age” seminar was held on September 8 in Hanoi, in which Mr. Nguyen Dinh Thanh, founder of the Elite PR School shared his views on current trends in public relations (PR) and marketing in Vietnam.

The first thing to note, he said, is that it has become strongly influenced by social media, and the second thing is that it must be based on people-to-people perceptions.

The purchasing habits of many Vietnamese customers these days rely on social media. In days gone by no one would go to the “otofun” group on Facebook to seek reviews of motor cars to decide which one to buy. This now happens with many types of products, where people search for answers on social media.

Information in this age is now being transferred in two ways. Customers can become a quality source of information on products and their opinions may be read by thousands of other people, who in turn will have their own view of the product.

Mr. Thanh believes that in other countries the media creates a social wave, but in Vietnam it is the other way around. Whenever a social wave appears, newspapers write about it. If that wave contains incorrect information about a company or product it is extremely rare to see the original source of the information issue an apology. “Most Vietnamese companies have no defense against social media, except for major players like Viettel or VNPT,” he said.

Most successful PR and marketing content at the moment has a people-to-people basis. Customers now not only purchase a product to satisfy their own demand but also want to contribute to society via social media, according to Mr. Thanh. There are many organizations that use social media to spread their social activities, such as “Toi xe dich” and “Hanoi Du”. As for companies, Toms has an effective program where whenever a customer buys a pair of shoes another pair is given to a child in a poor country.

TMV sales up 8% in August

Toyota Motor Vietnam (TMV) has announced sales of 3,893 units in August, an increase of 8 per cent (278 units) compared to August last year, in which the northern region saw 1,885 units sold, accounting for 48 per cent, the central region 421 units, or 11 per cent, and the southern region 1,578 units, or 41 per cent.

In the first eight months of the year sales stood at 31,475 units, an increase of 31 per cent compared with the same period of 2014.

August sales in the passenger car (PC) segment reached 2,220 units, up 10 per cent against last August and only a slight decline against July, due to a reluctance among customers to make major purchases in the seventh lunar month, which is a common sentiment in Vietnam. The all-new Vios continued to be the best-selling model in the segment, with 1,062 units sold, followed by the Camry 2015 with 519 units and the Corolla Altis with 400 units.

Sales of commercial vehicles (CV) stood at 1,673 units, an increase of 5 per cent compared to August last year. The leading position was held by the Innova, with 818 units, followed by the Fortuner, with 701 units, up 22 per cent and 2 per cent, respectively, against August last year. These two vehicles accounted for 91 per cent of TMV’s total sales in the CV segment during August.

Among completely-built-vehicles (CBU) imported and distributed by TMV, the all-new Yaris held top position with sales of 239 units in August. Sales of Hilux were 69, Hiace 53, Land Prado 21, and Land Cruiser 11.

Vinatea IPO for Sept 16

The Vietnam National Tea Corporation Ltd (Vinatea) will conduct an initial public offering (IPO) of nearly 11.8 million shares, or 31.8 per cent of its charter capital, at the Hanoi Stock Exchange (HNX) on September 16 as part of its divestment plans and to increase charter capital to VND370 billion ($16.45 million).

There is no limit on purchases by foreign investors.

As at December 31, 2013 the total capital held by the State in Vinatea was VND317 billion ($14.1 million). The State will divest all its holdings at the IPO, with over 23.5 million shares to be sold to strategic investors, 1.6 million to company employees, and over 11.8 million to the public.

HNX said the offering price would be the same as the par value, or VND10,000 ($0.44)

Vinatea expects to record revenue in 2015, 2016 and 2017 of VND241 billion ($10.71 million), VND255.8 billion ($11.37 million), and VND279.6 billion ($12.43 million) and plans a dividend payout ratio of 1.4 per cent, 2.2 per cent, and 2.5 per cent, respectively.

It also targets increasing productivity from 9 tons per ha to 11 tons by 2017.

The company has seven branches and three subsidiaries with tea plantations totaling 1,130 ha, mostly in northern Son La, Yen Bai, and Thai Nguyen provinces.

Vehicle sales down in August

Motor vehicle sales reached 18,236 units in August, a fall of 10 per cent compared to July but 45 per cent higher than in August 2014, according to the latest report from the Vietnam Automobile Manufacturers’ Association (VAMA).

Passenger cars saw a decline in sales of 11.5 per cent against July, totaling 10,309, but were up 43 per cent against August last year. Sales of commercial vehicles reached 7,168, down 8.8 per cent compared to July but a significant 75 per cent higher than August 2014. Special-purpose vehicle sales also fell 8.1 per cent compared to July, with 1,083 units sold, but were a substantial 141 per cent higher year-on-year.

The volume of completely-knocked-down (CKD) motor vehicles stood at 13,516, a slight decline of 8.8 per cent against July but up 54 per cent against August last year. The number of completely-built-up (CBU) units sold stood at 4,732, down 9 per cent compared to July but up a healthy 67 per cent year-on-year.

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