Deputy PM calls for completion of Trung Luong–My Thuan expressway project by 2019

Deputy Prime Minister Trinh Dinh Dung has called for joint efforts from relevant ministries, sectors and local authorities to mobilise all available resources to speed up the progress of the Trung Luong–My Thuan expressway project and finish it by 2019, one year ahead of schedule.

The Government leader made the call at a working session with Ministry of Transport (MOT), the State Bank of Vietnam, the Government Office and local authorities from Tien Giang, Vinh Long and Can Tho Provinces, as well as representatives of relevant agencies in Tien Giang Province on March 10.

He noted that he highly appreciated the full participation of relevant ministries, sectors, agencies and localities in implementing the project, particularly in site clearance and stabilising the livelihoods of households affected by the project.

He stressed that Party and State have paid special attention to improving traffic infrastructure in Mekong River Delta region in order to unlock the region’s economic potential while ensuring the social welfare of residents.

The Deputy PM tasked the MOT, investors, contractors and relevant agencies with ensuring that certain criteria be met during the construction of the project, including in terms of progress, safety, quality and efficiency.

Running through the town of Cai Lay and the districts of Chau Thanh, Cai Lay, Cai Be and Tan Phuoc in Tien Giang Province, the Trung Luong–My Thuan expressway will have a total length of 51.1 kilometres plus 4.5 kilometres of approach roads.

Started in 2015, the expressway is designed as a part of a “backbone” traffic route of the Mekong River Delta region, contributing to reducing traffic jams and traffic accidents while facilitating the socio-economic development of the region. The project’s cost is estimated at VND14.6 trillion ($648.8 million).

Local contractors need global strategies

Vietnam’s construction contractors require the execution of suitable strategies to attain success in foreign markets, experts have said.

In recent years, the domestic construction industry has made significant strides in management skills and construction techniques, and therefore have been successful in replacing foreign contractors on large projects with high technical requirements in the domestic market, vietnamplus.vn reported.

Le Viet Hai, deputy chairman of the Vietnam Association of Construction Contractors and Chairman of Hoa Binh Construction and Real Estate Trading Company, said local construction contractors have been able to provide high-quality construction services at cheap cost, only behind India.

Vietnam’s construction contractors have shown competitive ability in terms of workers, building material, design consultancy services and construction supervision, as well as project management and other services.

In addition, the country has three times more construction engineers and experts than the global average – a significant advantage -- Hai said. 

Vietnam has an average 9,000 construction engineers and experts per one million people against a world average of 3,000 construction engineers and experts per one million people.

More over, many countries were witnessing development in the construction market and there was high demand for construction contractors.

Hai said that the state should implement suitable strategies for local construction contractors to do business abroad and associations of the construction industry should share tasks of construction management with state offices, including ability assessment, ranking of contractors, granting of certificate and organisation of awards, to gain efficiency in doing business in the global construction market.

Notably, the connection between state agencies at home and Vietnam’s representative offices abroad was important for accurate and timely information about foreign construction markets. Based on this information, local construction contractors would have opportunities to seek investment and cooperation abroad. So far, local construction contractors had not received much support on information to do business abroad.

Le Van Tuan, General Director of Vietnam Machinery Installation Corporation (Lilama), said there were many enterprise delegations from foreign countries visiting Vietnam and ambassadors of those countries had directly connected their enterprises to some Vietnamese partners to enable cooperation.

This was a particularly important factor because it would help local enterprises follow the correct route and find appropriate partners, besides ensuring time was not wasted and efficiency was high, he said.

At present, Vietnam’s representative offices in foreign countries have certain conditions to research foreign markets to determine the potential of these markets, and then provide information and support to local construction contractors.

Therefore, Vietnamese construction contractors expected to have the support of these offices when entering foreign markets and to promote international integration programmes efficiently.

Hai said during negotiations of international agreements in the future, the state should pay attention to the negotiations to ensure equality in doing business between local and Vietnamese construction contractors in foreign markets.

Additionally, the local construction contractors will enjoy exemption or reduction of import tax for labour, material and construction vehicles to the foreign countries.

When doing business in foreign countries, Vietnam’s construction enterprises need support in administrative procedures, guarantee, exit and money transfer procedures. In particular, they need to ensure double taxation avoidance agreements are applied if Vietnam and the foreign country have that agreement.

Meanwhile, local construction enterprises must actively promote internationally-qualified vocational training and certification programmes for construction labour that want to work overseas, including workers, engineers and experts, according to the association.

Further, the state should have suitable policies in place to encourage Vietnam’s construction enterprises specialising in one kind of construction product, including specialisation in housing, hospitals, schools, industrial and infrastructure construction.

This would enable them to focus all their resources in the right place and ensure specialisation to improve competitive ability in the global construction market.

CLMV parliaments share public investment supervising

The parliaments of Cambodia, Laos, Myanmar and Vietnam (CLMV), have shared experience in monitoring and managing State budget and public investment during a conference in Phnom Penh on March 13.

Addressing the opening, Cambodian National Assembly (NA) leader Heng Samrin said that the event is a chance for the legislative bodies of the four countries to exchange ideas and seek a strategic plan and policies to ensure the use of State budget and public investment in an effective, transparent and responsible manner.

He highlighted the importance of enhancing the supervising role of the NA, inspectors as well as stronger engagement of people in the field.

The conference is also a chance to foster traditional friendship and cooperation among the four countries, contributing to maintaining peace and stability in each country as well as the region and the world, he stated.

Vice Chairman of the Vietnam’s NA Financial-Budget Committee Nguyen Huu Toan shared that supervision activities of Vietnam’s NA on public investment have been implemented through diverse forms such as thematic supervision, the verification of the Government’s reports and the organsation of question-and-answer sessions.

The activities focus on urgent matters that draw public attention such as the implementation of the Law on Thrift Practice and Wastefulness Prevention, the Law on Public Investment, Law on State Budget, as well as the allocation and use of State budget and the national target programmes on climate change and new-style rural building, and Sate-invested projects, he said.

Toan also underscored that the committee has proposed the NA to approve a resolution on a five-year financial plan and a medium-term public investment for the 2016-2020 period, and the reform of the balancing and distributing of public investment, ensuring the initiative of ministries, sectors and localities.

This will also create an important legal framework for the NA to improve the effectiveness of supervising the process of allocating and using of annual and medium-term investment each year.

During the two-day conference, participants will also discuss measures to better the management  over State budget and public investment, while sharing experience in lessons in State audit, and reviewing the outcomes of the previous conference in Da Nang and mapping out cooperation plans in the future.

Trade Ministry, HCM City protect consumer rights

The Ministry of Industry and Trade (MoIT) and this city’s People’s Committee hosted the launch of Vietnamese Consumer Rights Day 2017, themed 'Enterprise for Customers', here on March 12.

Minister of Industry and Trade Tran Tuan Anh said at the ceremony that this theme reinforced the important position and role of enterprises in protecting consumers, calling on enterprises to follow existing regulations on this issue.

This theme also reflected the commitment of state management agencies to create a business environment with healthy and equal competition for market development, he said.

On behalf of MoIT, the minister urged businesses to assert themselves through the best fulfillment of their obligation to secure the legitimate interests of consumers. The enterprises should consider the requirements and aspirations of consumers as the driving force of their competition and business development.

Announcing the plan on the occasion of Vietnamese Consumer Rights Day 2017, Nguyen Thanh Phong, Chairman of the People’s Committee of HCM City, said the people’s committees of municipal districts would strengthen their co-ordination to find solutions for consumer protection efforts, based on existing regulations.

Enterprises trading goods and services will take more responsibility for protecting customer rights, he said. In particular, social organisations that protect the customers’ interests and the media will actively raise public awareness of customer rights protection initiatives in the community.

Meanwhile, Phong said the city’s authorities had pledged to actively build a healthy economic environment and ensure fair competition for enterprises in investment, business and responsibility on protecting interests of customers’ interests.

At the launch ceremony for the event, a representative of MoIT signed agreements with enterprises joining the Enterprises’ Actions for Customers 2017 programme. These enterprises included Prudential Vietnam Assurance Private Ltd, Sun Resources Food Co Ltd, Kim Hang Aluminum and Plastic Joint Stock Company, Mobifone Corporation and LOTTE Mart Vietnam.

Nguyen To Kieu Trinh, marketing director of LOTTE Mart Vietnam, said his company would work closely with MoIT to develop a customer protection programme to be deployed at its 13 trading centres and hypermarkets.

The Prime Minister’s Decision 1035/QĐ-TTg, issued on July 10, 2015, set March 15 as Vietnamese Customer Rights Day.

The launch ceremony of the event is held on this date every year to confirm the importance of protecting the customers’ interests to ensure the stable and sustainable development of society and the nation. The event contributes to a healthy consumption environment for both customers and businesses.

IFC: HoSE joins 42 stock exchanges worldwide to Ring the Bell for gender equality

International Finance Corporation (IFC), a member of the World Bank Group, and the Hochiminh Stock Exchange (HoSE) are joining stock exchanges around the world in a global initiative to “Ring the Bell for Gender Equality” - a partnership that highlights the economic imperative of empowering women in the workplace, marketplace, and community.

From Ho Chi Minh City, representatives of HoSE, IFC and UN Women, together with senior businesswomen will ring the opening bell to mark International Women’s Day. They will speak on the continuing challenges of achieving gender equality and how the private sector can contribute to achieve this end.

“HoSE is proud to be participating in this meaningful event advocating gender diversity,” said Tran Van Dzung, HoSE board chairman. “Global statistics show businesses outperform with women, and investors are increasingly looking to invest in companies that incorporate sustainable investment strategies and promote diverse leadership.”

IFC works with companies in developing countries to generate opportunities for women while also contributing to companies’ bottom lines, productivity, and growth. By leveraging relationship with about 1,000 financial institutions and private equity funds, IFC helps expand access to finance for women entrepreneurs.

“At IFC, we believe gender equality is central to driving the global economy and the private sector has an important role to play in this,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia, and Lao PDR. “Specifically, the presence of women on boards and in leadership positions has a positive impact on financial performance, shareholder value and sustainability.”

Currently, close to 30 per cent of directors nominated by IFC on the boards of its investee companies are women.

Now in its third iteration, “Ring the Bell for Gender Equality” focuses on raising awareness on the business case for women’s economic empowerment and the opportunities for the private sector to advance gender equality, which is a key UN Sustainable Development Goal. The event is a partnership of IFC, the Sustainable Stock Exchanges (SSE) Initiative, the UN Global Compact, UN Women, Women in ETFs, and the World Federation of Stock Exchanges.

IFC, in partnership with Switzerland’s State Secretariat for Economic Affairs (SECO), is helping Vietnam companies put in place good corporate governance practices by raising awareness, building capacity, developing guidelines, and providing firm-level advisory services.

20 years on, Dinh Vu IZ is still an economic engine

In 1994, Filip Martens visited Vietnam with a mission to find new business opportunities for port-related industrial development. He travelled throughout Vietnam and China to a number of cities and provinces from north to south.

Martens then met with the American Insurance Group (AIG) team in Hanoi, who had signed an memorandum of understanding with the Vietnamese government to transform a peninsula called Dinh Vu in the northern city of Haiphong into an industrial hub. AIG invited Martens to join the project, and when he accepted, he became general director of Dinh Vu Industrial Zone (DVIZ).

With years of experience, Martens and the Belgian company Rent-A-Port saw massive potential in this region for industrial development based on an industrial hub with access to a deep seaport. The project team planned to transform this peninsula into a 1,000 hectare modern economic zone.

This was 20 years ago, and when the DVIZ team first initiated the concept of the industrial zone, very few people had faith in them.

Luckily, DVIZ received tremendous support from local leaders, who had the necessary momentum and ambition to think long-term. They knew the task would not be easy, but DVIZ was committed to lead the city into a successful new millennium.

In 1997, Dinh Vu Development Joint Venture Company, today known as Dinh Vu Industrial Zone JSC (DVIZ/Deep C), was established to develop an economic zone in this area.

Millions of cubic metres of sand were transported and hydraulically pumped to elevate and reclaim hundreds of hectares of waterfront land. Thousands of metres of sea dykes were built to protect the land from floods, erosion, and typhoons. DVIZ also built roads, power stations, and water treatment facilities.

The 164ha first phase of the industrial park was developed through persistent hard work and determination. After two years of construction, in 1999, DVIZ welcomed the first tenant of the zone, American investor Chevron Lubricants. After that, DVIZ launched its second phase, increasing the total area to 541ha. Since then, Marc Stordiau, chairman of the Board of Management of Dinh Vu Industrial Zone, continued to actualise the vision of DVIZ/Deep C.

In 2007, when AIG left the Dinh Vu project, their share was taken over by the Belgian government and by the Antwerp-based International Port Engineering & Management, a group of private investors with reclamation know-how. The majority of the shares remained in the hands of Rent-A-Port.

The hardship in the early days of development paved the way to success with the recognition of the Detailed Master Plan of DVIZ, approved by the Ministry of Construction in 2010. The industrial zone is supported by the Dinh Vu Port, the expanded Cat Bi Airport, the new expressway connecting Hanoi to Haiphong, and other expressways leading to the northeastern province of Quang Ninh, then South China, as well as other coastal provinces. Most importantly, the under-construction Lach Huyen Deep Sea Port will soon become the biggest port in northern Vietnam. The Dinh Vu/Deep C Industrial Zones are located in the middle of these mega-infrastructure developments, linking the city centre and hinterland industries to the gateway ports, opening up northern Vietnam to the rest of the world.

This success story illustrates how perseverance and collaboration between businesses and the government can turn a dream into reality. With the contributions from the Belgian government, the visionary Rent-A-Port team acts like a bridge connecting the governments of Vietnam and Belgium, making DVIZ a symbol of strong economic ties and friendship. This close relationship has been celebrated through various official visits throughout the years.

Rent-A-Port is not only doing business in Vietnam, but also conducting cultural exchange. The social and cultural ties between Vietnam and Belgium have been tightened by various activities such as the annual Belgian beer festival, performances of Belgian artists in Haiphong, and many other events.

This April, DVIZ is celebrating its 20-year anniversary in Vietnam. The event will mark an important milestone in the company’s path to carry on its founder’s legacy. It also reflects the passion and love that Belgian employees have for Vietnam, and the involvement they have had in much more than just industrial zone development.

HCMC businesses concerned about falling competitiveness

Less than one-third of enterprises are confident in the competitiveness of their products, whereas a majority of others are feeling the pinch of rising imports, heard a meeting between HCMC leaders and local business executives on March 7.

Speaking at the meeting, Chu Tien Dung, chairman of the HCMC Union of Business Associations, said the entrepreneurial spirit in the city had improved but most enterprises said in a recent survey they are less confident in their competitiveness.

The business prospect was positive last year as local firms were more competitive and the morale of entrepreneurs got a boost, evident in the record rise in startups. The HCMC business community, however, is struggling with difficulties, Dung said.

The increase in newly-established enterprises in 2016 shows an improvement in business confidence but business scale, capacity and competitiveness remained limited. In addition, due to high costs and old technology, only 35% of enterprises in the city were profitable and paid taxes.

“Businesses are under pressure from foreign products right on the home market. A survey shows only 32% of businesses are confident in their competitiveness at home while over 40% are concerned about their competitiveness and the rest are pessimistic,” Dung said at the meeting.

Kieu Huynh Son, director of Co Steel Co., said mechanical engineering firms still had difficulty gaining access to support for technology innovation, while small enterprises could hardly enter industrial parks.

There are now small workshops for lease in industrial parks but with high rentals. Supporting policies for workshop construction and equipment renovation have not reached enterprises.

Therefore, Son proposed the municipal government draw up a policy to help small-scale factories relocate to industrial parks. From there, specialized industrial clusters and sub-zones should be formed, with workshops in the sub-zones for supporting industries, where enterprises shall be granted certificates as a legal basis to borrow from banks.

Le Thi Thanh Lam, deputy general director of Saigon Food JSC, said on behalf of the Food and Foodstuff Association of HCMC that last year a couple of supermarket chains changed hands and their new foreign owners demanded higher discounts from local suppliers.

But Diep Dung, general director of Saigon Co.op, the owner of the country’s leading store chain Co.opmart, said the presence of more foreign retailers in Vietnam would lead to an army of local suppliers being created along the way.

Regarding access to supporting policies, Nguyen Minh Huong, CEO of Golden Communication Group, deemed it necessary to have a portal for enterprises to refer to when needed.

“If possible, the entire business support program should be integrated in a portal where businesses can obtain all information, instead of going to one agency after another to gather information,” she suggested.

HCMC vice chairman Tran Vinh Tuyen said there were now 245,000 household businesses citywide, which were contributing only 2% to the city’s budget revenue. A survey shows up to 14,000 household businesses can be transformed into enterprises for the city to achieve the number of 500,000 active firms by 2020.

Le Thanh Liem, standing vice chairman of HCMC, said more than 36,000 enterprises were set up in 2016, a rise of 13% over 2015. This year, it is forecast that some 40,000 new firms would be established and 20,000 household businesses converted into enterprises.

The goal is not to run after the number, but the quality of businesses. This month, HCMC will launch a stimulus package with separate policies for supporting industries, Liem said at the meeting on March 7.

ROS, HBC, DXG Added to FTSE Vietnam Index in Q1 Review

FTSE recently announced it will add ROS, HBC and DXG to its FTSE Vietnam Index in the first quarterly review of 2017.

FTSE, a London-based provider of indexes, late on March 3 announced that it would add three tickers FLC Faros Construction (ROS), Hoa Binh Construction (HBC) and Đat Xanh Real Estate Service & Construction (DXG) to its FTSE Vietnam Index in the first quarterly review of 2017.

FTSE, in the meantime, will remove five other Vietnamese stocks namely KDC, PVT, PDR, HVG and HQC from the basket for calculation of the index.

FTSE Vietnam Index is the underlying index for db x-trackers FTSE Vietnam UCITS ETF, run by Deutsche Bank, one of the two most active foreign-run ETFs in Viet Nam.

The changes will be applied after the close of business on Friday, 17 March 2017 and will be effective on Monday, 20 March 2017, FTSE said in a statement.

Together with Hoang Huy Investment Financial Services (TCH), ROS was also added to the FTSE Vietnam All-Share Index while Hung Vương JSC (HVG) and real estate developer HQC were deleted.

According to Saigon Securities (SSI) and BIDV Securities (BSC), FTSE Vietnam UCITs ETF would buy in between 4 million and 4.7 million shares of ROS to refresh its portfolio.

US-based MSCI Inc on February 10 included ROS and brewer Sabeco (SAB) into the basket for calculation of the MSCI Frontier Markets Index.

The stock price of ROS ended down 0.6 per cent at VND167,000 (US$7.32) per share on Wednesday, up 12.15 per cent from the close on February 28.

F&N looks to buy 21.7 million more Vinamilk shares

Singapore-based F&N Dairy Investments Pte Ltd (F&N) has registered to buy shares of Vietnam Dairy Products Joint Stock Company (Vinamilk) for the third time, asking for 21.77 million shares, equivalent to a 1.5 per cent stake of the dairy firm’s capital.

The transaction is expected to take place between March 10 and April 7 via the auction and negotiation methods.

F&N also registered to purchase 21.77 million shares during February 6 - March 7 but only picked up 4.11 million, lifting its Vinamilk shares to 218.8 million, an estimated 15.07 per cent of the total shares.

The company said it could not buy all the number of shares that it had sought then because of unfavourable market conditions.

Vinamilk’s price fluctuated between VND126,700 and VND134,100 (US$5.69 and $6.02) per share during the F&N’s purchase time, lower than the VND144,000 ($6.47) per share that F&N accepted during the auction hosted by the State Capital and Investment Corporation (SCIC) at the end of 2016.

If the upcoming purchase succeeds, F&N will own 240.6 million Vinamilk shares, or 16.57 per cent of the total shares.

Vinamilk was established in 1976 and was listed on the stock market in 2006. At the price of VND130,600 a share on Wednesday, the company’s market capitalisation is VND189.6 trillion ($8.3 billion).

Currently, Vinamilk’s foreign ownership stands at 53.68 per cent, of which the F&N group and its subsidairy firm F&N BEV Manufacturing own 17.77 per cent, being Vinamilk’s second largest shareholder, after the SCIC.

F&N is a subsidiary of Fraser & Neave Corporation, Singapore’s largest beverage producer, and is owned by Thai business tycoon Charoen Sirivadhanabhakdi.

HCM City property firms aim for cooperation, stability

In a document sent to city authorities on developing the property market from now to 2020 with a vision toward 2025, the association’s chairman Le Hoang Chau said that such cooperation would help the sector develop in a more transparent and stable manner. 

He said that State agencies along with enterprises should improve administrative procedures, develop a one-stop policy, and reduce the number of procedures as well as set up a database of the city’s real estate market.

Such cooperation among all parties would result in better material prices, Chau said.

Citing the shortage of city funds, the association also suggested using the financing methods of build-transfer (BT) or public-private partnerships (PPP).

It also said the city should strictly manage and ensure the quality of construction, and develop social and commercial housing at affordable prices.

Low-cost housing is especially needed, the association said, because nearly 3 million of the 13 million people in the city are migrants, or 23 per cent of the total population.

Of the total, there are about 400,000 students, with 50,000 people marrying annually.

The association also cited a Department of Construction report which said that 500,000 families in the city do not own housing.

During the 2016-20 period, 81,000 households needed social housing, the report said.

Developing social housing and inexpensive commercial housing as well as housing leased at low prices are the key responsibilities of the city, it said.

In the last 10 years, HCM City’s real estate market has developed strongly, with two bubble periods, one in 2007 and the other in 2010.

The market was frozen, however, from 2008 to 2009 and from 2011 to 2013.

The market began to recover in late 2013, but stagnant signs appeared in mid-2016 as there was an imbalance between demand and supply.

While supply has primarily focused on the luxury segment with condotels and luxury apartments, the demand was for apartments and houses with affordable prices of around VND1 billion.

Over the last 10 years, new housing was built in all districts, beginning in the central part of the city and then moving to the southern area.

In the last four years, activity has moved to the city’s eastern area, whose key part is the new Thu Thiem urban area.

Currently, about 1,200 housing projects are registered in the city. Of those, 500 have been suspended because of land clearance problems.

More strikes of false advertising at Alma resort

More customers have contacted VIR to accuse Paradise Bay Resort Co., Ltd. for false advertising.

This time they accuse the company of putting their name on a project that they do not own, confusing customers.

TNV, a customer from Ho Chi Minh City, saw that the voucher given to customers attending the conference to introduce the Alma project mentioned Alma Villa Dalat-Sacom Resort Tuyen Lam. He said this was the reason he signed the contract to own vacations, thinking that he will have a chance at a holiday at Alma Villa Dalat.

However, after reading the articles on VIR raising suspicion about the project, he set out to check the information the company provided and found a lot of opacity.

The voucher offers two adults (with no accompanying children) one night at Alma Villa Dalat-Sacom Resort Tuyen.

V thought that this villa—Alma Villa Dalat at no. 49 in section A of Sacom Resort in Ward 3, Da Lat city, Lam Dong province—is owned by Alma. However, after a more thorough look, V discovered that the company has headquarters in Hat Giang, Nha Trang, Khanh Hoa, and a branch in Dalat (the above mentioned address). 

The Sacom Tuyen Lam resort is developed by Sacom Tuyen Lam JSC. It is unclear whether Paradise Bay Resort Co., Ltd. owns the villa.

The Alma brand on the vouchers and gift cards that Paradise Bay Resort Co., Ltd. handed out causes confusion among customers.

V then asked Paradise Bay Resort Co., Ltd. for his deposit back and to nullify the contract but the company refused.

Lawyer Tran Duc Phuong from the Ho Chi Minh City Lawyers’ Association said that with these vouchers, Paradise Bay Resort Co., Ltd. intentionally confused customers into thinking that it owns the Dalat villa. This made the scale of the project and the mechanism of exchanging vacations between these two locations even more obscure.

Being unable to exchange their vacations for other domestic locations poses a disadvantage to customers, because few people choose to go on vacation in the same week every year at the same location for 45 years. If they want to sell their vacation rights, they will have to spend a lot of time looking for people to sell them to. Moreover, renting for the purpose of re-renting is risky in Vietnam at the moment because it is not legalised.

The vouchers do not specify till when the vacations at Alma Villa Dalat are valid. The villa is part of the Sacom Tuyen Lam Resort and customers will have to comply with the rules set forth by Sacom Tuyen Lam JSC, not Paradise Bay.

The 2010 Law on Consumer Protection stipulates that businesses are not allowed to cheat or confuse customers through false advertising, hiding information or providing inaccurate information about (1) the goods and services that they provide and (2) the prestige and the ability to provide these goods and services.

Phuong said that people who signed the contract can sue, asking for the contract to be nullified and for the company to return their deposit.

Changes at the top at FLC

Ms. Huong Tran Kieu Dung has been appointed Deputy Chairwoman of the Board of Management of the FLC Group, replacing Mr. Le Thanh Vinh, who becomes CEO.

The change is part of plans to perfect the Group’s senior leadership as it continues to grow in terms of assets and operational scope.

At a ceremony held recently to mark the appointment, Chairman Mr. Trinh Van Quyet said the group is in a period of rapid growth with a series of high-end resorts, golf and entertainment projects in train throughout the country with total investment in the billions of dollars. “This requires senior leaders be highly adaptable and willing to support each other,” he explained.

“After the group’s strong development in recent years, the Board has a lot to do in the time to come,” Ms. Dung told the ceremony.

Born in 1978, Ms. Dung has a PhD in Construction and Planning Law from France’s Montesquieu Bordeaux IV University. She also has more than 15 years of experience in consulting and managing businesses, property project construction, investment, and M&A in Vietnam.

Mr. Le Thanh Vinh, meanwhile, is well-trained in business administration and law and has many years of senior management experience. He holds a Masters of International Business and a Masters in International Trade Law from Deakin University, Australia, and a Law Doctorate from Monash University in Australia.

As part of the senior leadership restructuring, on March 1 the group also appointed Ms. Vu Dang Hai Yen as Deputy General Director.

FLC targets recording total real estate revenue of VND13 trillion ($591 million) this year, double the figure in 2016. It also plans to launch more than 2,500 condotel units, 1,400 ocean villas, 3,500 hotel rooms, and four 18-hole golf courses.

Hoa Phat to raise $175.5mn via share issue

The Hoa Phat Group, the leader in Vietnam’s steel industry, plans to issue an additional 250 million unrestricted shares in the second quarter of the year to existing shareholders, at a 5:1 ratio, with those holding five shares being entitled to buy one new share.

The asking price is yet to be made public and will be decided later by the Group’s Board of Directors (BoD) at the issuance date, based on the book value and the share’s market price. The asking date will be set after the Group pays out its 2016 dividend via share issuance and receives State Securities Commission (SSC) approval.

Other than the 5:1 ratio share issuance, Hoa Phat also proposed to its shareholders the 2016 stock dividend payout. If approved, both will see the Group’s charter capital increase to VND15.14 trillion ($664 million), or 1.8 times higher than its current charter capital.

The BoD commits to distributing all outstanding shares that may be left over if existing shareholders don’t purchase all or some, at a price not lower than the asking price for existing shareholders.

The minimum amount the Group will gain from this share issuance is not to be lower than VND4 trillion ($175.5 million). Accordingly, the minimum asking price will not be lower than VND16,000 ($0.7) per share. Hoa Phat’s shares are now floating around the VND42,000 ($1.84) price range.

This is the first time Hoa Phat has issued additional shares to existing shareholders since being listed. The mobilized capital will be invested in the Hoa Phat Dung Quat iron and steel production complex in central Quang Ngai province and other operations. Earlier this month, Hoa Phat also signed a contract to borrow VND10 trillion ($438.5 million) from Vietinbank to help finance the steel complex project.

Hoa Phat expects to complete the project by late 2019, tripling its annual steel production to 6 million tons from the current 2 million. It took over the project from Taiwan’s Guang Lian Steel Vietnam, which had delayed the project for ten years after struggling with finance.

Hoa Phat expects to earn $2 billion in revenue per year and contribute VND4 trillion ($175.4 million) to the State budget after the project comes to life. An estimated 8,000 jobs will be created. The project will be conducted over 50 years and is part of a plan to develop a steel production and distribution network from now to 2020 and vision to 2025, approved by the Ministry of Industry and Trade.

The Group is also working on a $170 million steel plate mill in northern Hung Yen province. With a capacity of 400,000 tons, the facility is slated to begin production in 2018 and will supply materials for construction projects in the Hanoi area, one of the country’s biggest markets for architectural steel besides Ho Chi Minh City.

The Group has recently adjusted its business targets this year, with turnover and after-tax profit of VND40 trillion ($1.75 billion) and VND6 trillion ($263.2 million), respectively. Last year, it posted record turnover and after-tax profit of VND34 trillion ($1.5 billion) and VND6.6 trillion ($289.5 million), respectively, representing year-on-year increases of 34 per cent and 89 per cent.

After successfully acquiring 3 million shares of Hoa Phat in early-March at an undisclosed price, Private Equity New Markets Germany IV (PENM IV) has also registered to buy a further 5.5 million shares between March 8 and April 6. At an average price of VND42,000 ($1.84) per share, PENM IV will need to outlay VND231 billion ($10.1 million).

SASCO: Duty-free sales profit up 20-fold in 2016

Profits from duty-free sales at airports increased 20-fold in 2016 compared to 2015, according to the fourth quarter consolidated financial report from the Southern Airports Services Joint Stock Company (SASCO). SASCO earns VND20 billion ($877,307) in profit each month from duty-free sales and other business activities.

Revenue was VND2.08 trillion ($91.5 million) in 2016 as a whole, an increase of 4 per cent against 2015. Revenue from duty-free sales was VND1 trillion ($43.86 million), while revenue from airport shops was VND555 billion ($24.34 million).

While revenue increased only slightly, after-tax-profit increased dramatically, reaching VND233.9 billion ($10.28 million), which is 20 times higher than its after-tax-profit in 2015. This is the first time SASCO’s profit has spiked since it listed on the UPCoM market.

Another reason it's profit rose sharply is that financial revenue in 2016 rose from VND110 billion ($4.82 million) in 2015 to VND174 billion ($7.63 million). SASCO recorded profit from capital transfers and trading in securities of VND101 billion ($4.42 million). However, financial fees rose slightly, to VND56 billion ($2.45 million), or by VND7 billion ($307,020), compared to 2015.

Sales costs stood at VND473 billion ($20.73 million), up VND80 billion ($3.5 million) compared to 2015. However, the company cut administrative costs to VND245 billion ($10.74 million), so sales cost came down to VND213 billion ($9.34 million).

SASCO was previously the Southern Airport Services Company. It held an initial public offering (IPO) in 2014. Its strategic partners are three companies belonging to Mr. Johnathan Hanh Nguyen. His wife, Ms. Le Hong Thuy Tien, is a member of its Board of Directors.

Airports Corporation of Vietnam (ACV) has sold 1.56 million SASCO shares (stock code SAS), bringing its ownership down from 51 per cent to 49.81 per cent.

HSG to issue 3.46mn ESOP shares

The Hoa Sen Group JSC (stock code HSG) has decided to issue more than 3.46 million shares under the ESOP program to senior officers and staff on the occasion of its 15th anniversary.

It has approved the issuance of more than 3.46 million ESOP shares at an issuance rate of 1.76 per cent. The value of the shares will be over VND34.6 billion ($1.52 million), with a release date expected in April. The issue price has been determined at VND10,000 per share ($0.43). HSG’s shares currently trade at around VND47,000 per share ($2.06), putting the value of the ESOP shares at more than VND160 billion ($7 million).

Those receiving the shares include leaders, executives and key staff at the group at the founding date, senior management and the chief accountant, staff who have worked for Hoa Sen Group for 15 years, and staff in key positions at the parent company and affiliates.

The ESOP shares cannot be sold for three years, with a transfer fee of 50 per cent imposed on sales in the fourth and fifth years.

On February 27, the Hoa Sen Group finalized the list of shareholders to pay the first dividend of the 2015-2016 financial year, in cash at a rate of 10 per cent, or VND1,000 ($0.043) per share.

BVIF to raise Vinare holding

The Bao Viet Value Investment Fund (BVIF) has registered to buy a further 3 million shares of the Vietnam National Reinsurance Corporation (Vinare, stock code VNR).

The transaction is expected to be carried out from March 14 to April 12.

BVIF has reported on the results of its original purchase of Vinare shares.

It purchased nearly 6.48 million shares from January 18 to February 16, or 4.94 per cent, after registering to buy 8 million. The lower holding was due to unsuitable market conditions.

The price of VNR shares have increased to VND24,500 ($1.07) compared to VND25,600 ($1.12) to VND22,500 ($0.98) when BVIF bought the shares.

Mr. Phan Kim Bang, Vice President of Vinare, is also Vice President of BVIF. He owns more than 12 million VNR shares, or 9.18 per cent.

BVIF also purchased nearly 5 million shares in Saigonship (stock code SGC) and became a major shareholder, increasing its ownership from 0.69 per cent to 35.01 per cent.

BVIF was established in November 2015 with initial capital of VND1 trillion ($43.79 million).

Vinare was established in 1994 and total chartered capital is VND1.3 trillion ($57.018 million). The goal of the company is to become a professional reinsurance company in Vietnam. It supplies long-term solutions and international-standard services in Vietnam and Asia.

FDI poured into real estate on the rise

Foreign direct investment (FDI) in the property market has been on the rise, with nearly US$300 million in January, accounting for nearly 21% of total FDI in Vietnam.

Last year, the sector attracted about US$1.3 billion, making up 10% of total FDI poured into the country. The Vietnam National Real Estate Association has predicted that the market will become busier.

Ho Chi Minh City lured the highest number of FDI projects in the real estate, with investment accounting for 40.9% of the country’s total.

Notably, a joint venture between Japan’s Maeda Group and Thien Duc company of Vietnam invested US$30 million in Waterina Suites high-end apartment project in District 2.

Meanwhile, the Japanese Mitsubishi Group signed a contract with Bitexco to set up a housing development joint venture with an initial capital of about US$290 million. Another giant from Japan, Kajima Group, has also teamed up with Indochina Capital to form a US$1 billion joint venture in ten years with four projects in Hanoi, Da Nang and Ho Chi Minh City.

At the same time, the number of newly-established real estate enterprises has also increased in both quality and quantity.

According to the Business Registration Management Agency, by the end of 2016, 110,000 new enterprises were set up, a rise of 16.2% over the previous year, a record figure so far.

Total capital committed to the market reached VND891.09 trillion, or VND8.09 billion per new firm, up 48.1% year on year. Meanwhile, 26,689 businesses resumed operation, up 43.1%.

Work starts on wharf connecting with Con Dao

Work on the Tran De-Soc Trang Wharf connecting with Con Dao island started on March 13 in Tran De town, the Mekong delta province of Soc Trang by the Superdong Fast Ferry-Kien Giang JSC.

Quach Hoa, member of the company’s Board of Directors, said the Soc Trang-Con Dao route is expected to be launched in June.

The project, with a total investment of VND90 billion, sits on over 3.6 ha in Dau Giong village, Tran De town.

It includes jetty, dyke, terminal, restaurant, reading room, parking, entertainment areas, and other auxiliary facilities.

According to Nguyen Van The, Secretary of the provincial Party’s Committee, the province lures 1.2 million tourists every year. The route is expected to lure more tourists to Con Dao island via Soc Trang.

He pledged that Soc Trang will create optimal conditions for investors and will continue developing infrastructure facilities, services to promote tourism.

According to the company, speedboat Superdong Con Dao 1, being built in Malaysia at a cost of around VND50 billion (US$2.2 million), has a capacity of 306 passengers. The ship will be delivered to the company in May. In the first six months of operation, the ship is expected to serve 30,000 people between Soc Trang and Con Dao.

Speedboat Superdong Con Dao 2 is expected to be put into operation in the first quarter in 2018.

Con Dao is an island district of Ba Ria-Vung Tau province. Sitting 185 km from Vung Tau city and 230 km from Ho Chi Minh City, Con Dao plays a significant role in socio-economic, defence and security development in the country’s southern seas and islands. 

It is also home to important tangible and intangible national cultural heritages presenting substantial potential to develop various forms of tourism such as ecological and spiritual tourism.

Ministry amends auto import circular

The Ministry of Industry and Trade has decided to officially demolish Item 2, Clause 1, Circular 20 on import conditions of less than nine seater automobiles requiring importers to submit the Ministry of Transport’s certification of qualified auto maintenance and warranty centers.

They have not had to get the certificate since March 9 as before.

Formerly, auto import firms sent a document to the Prime Minister saying there was no legal basic to maintain the illegitimate regulation because auto import is not subject to the conditional list of the 2014 investment law.

Auto businesses and associations claimed that many regulations in the circular do not encourage fair competitiveness, break the Competitive Law 2004, do not assist small and medium enterprises and go against Resolution 35 of the Government and other policies on assisting this sector.

They suggested removing the circular to create healthy business environment without discriminating between large and small firms.

Domestic revenue reaches $7.17 billion in first two months

Domestic revenue was estimated to reach VND63,500 billion (US$2.79 billion) in February and VND163,100 billion ($7.17 billion) in the first two months this year, reported the General Department of Taxation.

The two month revenue accounts for 16.8 percent of estimates and increases 8 percent over the same period last year.

Tax agencies have performed many measures to obtain the result, according to the department. Specifically, they have upgraded tax management system, handled problems in tax declaration and payment, piloted e-value added tax payment at 13 taxation departments across the country.

In addition, they have sped up propaganda and other measures to assist tax payers to conduct their obligations, focusing on sponsoring businesses to strike a balance, improve national competitiveness by coordinating with relevant agencies to boost administrative reform.

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