Prudential Vietnam named leading life insurer

Prudential Vietnam has been honored with a Golden DragonAward as “Vietnam’s Leading Life Insurance Company” from Thoi Bao Kinh TeVietnam (Vietnam Economic Times). This is the 14th time Prudential Vietnam hasreceived the prestigious award for foreign-invested enterprises in Vietnam.

As “Vietnam’s Leading Life Insurance Company”, PrudentialVietnam continues to affirm its leading position in the field of insurance andactively contributes to the country’s socioeconomic development. Its leadingposition is evidenced by its outstanding business results, financial strength,and excellent financial services, which are key criteria in the Golden DragonAwards.

The award also recognizes the strong development ofPrudential, with more than 300 general agent offices and customer servicecenters around the country, and its efforts to develop and improve productquality and services to meet the needs and expectations of customers.

“The Golden Dragon Award 2016 is in recognition ofPrudential Vietnam’s success and non-stop efforts,” said Mr. Steve Clark, CEOof Prudential Vietnam. “Throughout its development, Prudential aims to improvepeople’s lives by providing safe and effective financial solutions. This awardwill drive us to continually improve the quality of our products and servicesbased on the principle of understanding the market and meeting the changingneeds of our customers. With a strategy of customers being a core value, Ibelieve that Prudential Vietnam will continue to develop and maintain itsleading position in Vietnam’s life insurance market.”

With the strategy, Prudential has applied a perfect servicemodel at its agents to improve the quality of services and take full advantageof its information technology applications to bring the best experience tocustomers. The model has been developed and deployed at hundreds of Prudentialoffices nationwide, creating trust among and making an impression on customers.

In addition to its success in business and its efforts toimprove product and service quality, Prudential Vietnam also demonstrates itscorporate social responsibility via community activities. In 2016, itcontributed VND39 billion ($1.7 million) to three major areas: Education,Public Health and Community Support.

Vietnam Economic Times’ Golden Dragon Awards and VietnamExcellent Brand Awards were initiated in 2001 to recognize and encourageenterprises that have recorded outstanding achievements. Recognition isconsidered from many perspectives, such as production and business activities,service provision, the application of technological solutions for environmentalprotection, the full implementation of tax obligations, ensuring employeerights, and actively participating in community activities.

Prudential entered Vietnam in 1995 with a representativeoffice and began operations in 1999. As a leading life insurer in the country,it operates the most extensive nationwide distribution network, comprisingseven bank partners and over 300 customer service centers and branch offices inVietnam’s 63 cities and provinces.

Humax opens R&D center in Hanoi

South Korean electronics company the Humax Co., Ltd has officially opened a new research and development (R&D) center in Vietnam.

The center is located in Handico Tower in Hanoi’s South Tu Liem district. Savills Vietnam was engaged to provide research-supported advice, insight, and guidance to facilitate Humax’s business expansion strategy.

Mr. Park Yohan, Finance Manager at Humax Asia Pacific, said that as Vietnam is a market of potential in the region, it decided upon Hanoi for a representative office in Hanoi in 2015 and two years on it is time to expand. “Humax believes that the opening the new R&D center will provide a good platform to attract young intellectual resources,” he added.

Ms. Hoang Dieu Trang, Senior Manager of Commercial Leasing at Savills Hanoi, said that the west of Hanoi is a vibrant area with increasing demand from major IT and electronics companies seeking large floor areas at reasonable prices. “Humax is a South Korean electronics company and their acceptance of Savills’ recommendation of Handico Tower for establishing their exciting new R&D center is a great example of this growing trend,” she said.

The latest Savills’s report showed that, since 2015, Hanoi’s west is rapidly becoming a preferred business location for domestic IT, telecoms, and foreign technology companies seeking industrial-scale buildings with competitive overheads, easy accessibility, and full facilities.

Fulfilling these requirements against a backdrop of increasing rental costs has become increasingly difficult in the capital, presenting challenges for prospective tenants and building owners and companies are increasingly moving to the west as a result. Samsung and Viettel are now both located in the area.

The office segment in the west has limited Grade A vacancies and secondary Grade A occupancy is sharply increasing as a result of landlord incentives, according to Savills. Grade A outpaced Grade B, with a vacancy rate of just 6 per cent in the west.

Humax is a South Korean consumer electronics company founded in 1989 and manufacturing set-top boxes, digital video recorders, and other consumer electronics.

Dragon Capital offsets annual carbon emissions

The Dragon Capital Group (DCG) has offset its annual carbon emissions by purchasing Voluntary Emission Reduction (VER) certificates from a biogas project in the countryside.

With the aim of becoming one of the leaders in promoting corporate sustainability and environmental responsibility in Vietnam, DCG is conscious of its consumption of natural resources and is committed to proactively managing its environmental performance. 

As part of such efforts, since 2008 the company has conducted an assessment of its carbon footprint and offsets unavoidable operational emissions to maintain its carbon-neutral status.

“Offsetting DCG’s carbon emissions through this project not only enhances its corporate social responsibility position but also encourages the development of small farm biogas generation in Vietnam, providing rural farmers with a sustainable gas supply from farm waste,” said Mr. Gavin Smith, Director of Dragon Capital Clean Development.

The total 583.43tCO2 emissions from the Group this year is being offset by green energy produced from the Biogas Program for the Animal Husbandry Sector of Vietnam, launched in 2003 by the Livestock Production Department at the Ministry of Agriculture and Rural Development in cooperation with SNV, an international development organization from the Netherlands.

The project provides farming families with access to renewable energy and improved hygiene through the development of a commercially viable biogas sector.

Founded in 1994, DCG is an integrated investment company based in Vietnam. Together with its affiliates, it manages some $1.5 billion in assets spanning public equity, private equity, fixed income, and property. Its primary shareholders are the company’s founders, management, and staff, and it now employs over 100 people at offices in Asia and Europe.

Logistics association to assist in national plan on competitiveness

The Việt Nam Logistics Association (VLA) on Wednesday launched a ceremony to implement the Government’s first national action plan to improve the country’s competitiveness and its logistics sector by 2025.

Lê Duy Hiệp, VLA chairman, said that VLA had been assigned to complete several tasks of the plan.

In February, Prime Minister Nguyễn Xuân Phúc approved the action plan, which aims to have the logistics sector contribute 8 to10 per cent to the country’s GDP, with annual growth of 15-20 per cent by 2025. 

The plan also calls for Việt Nam to become one of the world’s 50 leading logistics services providers.

The plan recommends new policies, more investment in infrastructure development, and better co-operation between local and foreign logistics companies. 

The aim is to have logistics companies that can be competitive in both domestic and international markets.

Under the plan, Việt Nam will enhance connectivity with neighbouring countries and develop regional and international hubs. 

The plan calls for building level-1 logistics hubs (the highest level) in Hà Nội and HCM City, and level-2 logistic centres in Lạng Sơn, Lào Cai, Hải Phòng, Đà Nẵng, Quy Nhơn, and Cần Thơ.

Trần Thanh Hải, deputy director of the Ministry of Industry and Trade’s Import-Export Department, said the country’s logistics development has been modest, as there are only 1,300-1,500 firms in the sector.

More than 70 per cent of the businesses are small- and medium-sized with average capital of about VNĐ7 billion (US$320,000).

“The country’s logistics effectiveness has been low, while available resources have not been fully exploited,” Hải said.

The action plan would provide short- and mid-term solutions to improve the logistics sector in the next seven or eight years, he added.

The initiatives taken by the Government to strengthen the logistics industry and increase efficiency have been supported by industry insiders.

Christoph Matthes, managing director of logistics firm DB Schenker in Việt Nam, said, “We strongly support the plan as the logistics has become more important than ever before.”

In addition, increasing consumer demand requires a faster and more reliable way of delivery of goods. 

For many customers, logistics is no longer a matter of moving boxes from one location to another, but creating a highly efficient and reliable supply chain which enables them to be competitive in a fast-changing world.

International trade is growing rapidly as well, and thus, a need to connect to other markets via air, ocean and road freight. 

Some of the largest export markets for Việt Nam include the ASEAN region and Europe, where Việt Nam competes with other countries and where logistics costs play a vital role.

Trade with Europe is expected to increase with the EU-Việt Nam Free Trade Agreement (EVFTA) coming into force next year. 

Experts said more steps were needed for smooth implementation of the agreement and to make sure businesses can fully benefit as soon as the treaty takes effect. 

The commitment of the Vietnamese Government to strengthen the logistics sector is an important step towards making this possible.

Nestor Scherbey, general director of logistics firm Customs, Trade and Risk Management Services Ltd Việt Nam, said the national action plan would play a critical role in raising competitiveness. 

Logistics costs in Việt Nam are among the world’s highest, at 25 per cent of GDP, which hinders the cost competitiveness of Vietnamese firms, according to Logistics Insight Asia.

Logistics costs in the US, Europe and the rest of the world are around 9, 13, and 15 per cent, respectively.

“The efforts necessary to achieve a national action plan for logistics must be undertaken in co-ordination with diligent efforts by Việt Nam to implement the commitments of the World Trade Organisation Trade Facilitation Agreement (WTO TFA),” Scherbey said.

Many of the major commitments of the WTO TFA were contained in the Trans-Pacific Partnership (TPP) and EVFTA. 

Full implementation of trade facilitation by Việt Nam would reduce the country’s international trade transaction costs by 20 per cent.

“It is the combination of the benefits of trade facilitation, with the benefit of reducing domestic logistics costs, that will allow Vietnamese products to become fully competitive in global markets,” he said.

Vietnamese losing trust in corporate leaders

A recent survey shows that 38% of Vietnamese think that leaders of firms are in the top three most corrupted groups.

The survey was conducted by the Vietnam Chamber of Commerce and Industry (VCCI) and Centre for Social Governance Research. The results were announced during a conference about fostering a better business environment through collective actions in business integrity in Vietnam on April 12.

Centre director Nguyen Thi Kieu Vien said the firms were both victims and causes for corruption. "The images of business leaders are being tarnished," she said.   

She hoped that collective action in the business sector would create the chance to effectively implement anti-corruption measures among firms and improve their ability to file complaints to government and related agencies.

According to CENSOGOR, corruption is threatening the sustainable development of the economy and may cause severe harm to the society. It discourages transparency in firms, creative start-ups, healthy competitions and market quality.

In addition, it promotes illegal funding, tax evasion, bribery and money laundering.

Firms at the conference were urged to take a strong stand against corruption, obey the laws, and denounce corrupt employees.

Nguyen Quang Vinh, deputy secretary of VCCI, said small and medium-sized firms in Vietnam need to learn how to prevent bribery in order to enter the global market.

Vietnamese, Japanese localities seek stronger economic links

Secretary of the Ho Chi Minh City Party Committee Dinh La Thang has suggested enterprises from Japan’s Hyogo prefecture expand investment and enhance partnerships with the Vietnamese locality. 

Thang, who is visiting Japan, made the suggestion at a conference to promote economic cooperation between the two localities on April 12. 

He said HCM City wishes to promote industrial production, high technology, seaport service and high-tech agriculture, which are strengths of Hyogo.

However, he noted that Hyogo has only 22 businesses operating in HCM City, expressing his desire for more firms from the Japanese locality to invest in the city. 

HCM City authorities pledge to create favourable conditions for foreign enterprises, including those Hyogo to operate in the city, he stated. 

For his part, Governor of Hyogo prefecture Toshizo Ido said Vietnam is an attractive destination for investors thanks to the country’s young workforce, stable politics and safety. 

According to Ido, about 1,500 Japanese firms are operating in Vietnam. 

Economic, tourism and culture exchange helped promote the friendship between HCM City and Hyogo, he said, adding that the conference contributes to enhancing relations between the two localities and their enterprises. 

At the conference, participants were updated on HCM City’s economic development and policies to encourage investment and promote support industry and projects that the city is calling for investment in. 

According to Deputy Director of the municipal Department of Planning and Investment Tran Thi Binh Minh, HCM City authorities have taken measures to boost administrative reform and developed infrastructure to attract more investors. 

The city is developing a 13ha industrial zone to serve Japanese businesses, she said. 

During their meeting earlier the same day, Vietnamese and Japanese officials highlighted great potential for the two localities to cooperate in industry and seaport development.

They hoped more economic and investment promotion activities between the two sides will be organised. 

Secretary Thang called on Toshizo Ido, who is also Chairman of the Union of Kansai Governments, to promote links not only between the two localities, but also between Vietnam’s southeast key economic area and the Kansai region. 

Japan ranks fourth in term of total new registered-investment in HCM City with 1,001 projects worth 3.54 billion USD. Japanese investors mainly operate in processing and manufacturing industry, retail service, and science and technology-related sectors.

Leading Vietnamese F&B companies to attend THAIFEX 2017     

Several leading Vietnamese food and beverage companies will promote their products internationally at the THAIFEX-World of Food Asia, taking place from May 31 to June 4, 2017, in Bangkok, Thailand.

Leading F&B companies in Viet Nam, such as Vietnam Dairy Products Joint Stock Company (Vinamilk), Dan On Food, Rita Food & Drinks and Minh Phong Green & Agricultural Products JSC, have been attending THAIFEX 2017 for five consecutive years. There are also many new players, such as Seafarm Liability Limited Company and Lotus Rice Ltd. This year, Vietnamese exhibitors will see a 55 per cent increase in area, with the introduction of the new seafood pavilion.

“THAIFEX-World of Food Asia 2017 will mark the fifth consecutive year Vinamilk is participating in the international trade show. This year, besides a focus on our key products at the Viet Nam pavilion, we are excited to introduce our organic milk to consumers,” Vinamilk International Business director Vo Trung Hieu said.

"THAIFEX-World of Food Asia is a great platform for us to introduce and share our products with both Thai and international consumers. On top of that, we will also be able to expand our reach and work with new and emerging markets in the region,” Hieu added.

At the event organised by Koelnmesse, visitors can expect a mega show, with at least 45,000 industry professionals, 2,000 exhibitors and representatives from over 40 countries congregating for the five-day event.

THAIFEX 2017 will showcase distinctive features, including an additional 13,500 square in event space, making it the largest-ever trade fair in the F&B industry. The event will identify 11 key food industry trends for 2017, of which organic food is forecast to make waves this year. 

Misumi Vietnam makes debut in Bac Ninh     

Misumi Vietnam Co, an affiliate of Japanese Misumi Group, made its debut on Wednesday in the northern province of Bac Ninh.

Located in the Tien Son Industrial Zone, the company manufactures and distributes standard components for factory automation, press die and plastic mold.

“In Viet Nam, foreign direct investment, especially in areas such as mobile phones, electrical machinery or electronic manufacturing, is still growing. MISUMI Vietnam is targeting the capture of customer needs in those industries, particularly focusing on Japanese and Korean companies, by leveraging our existing business relationship in Japan and Korea,” company general director Yasuo Shimokura told reporters.

He said, in the long term, the company also wanted to penetrate Viet Nam’s local manufacturing sector, including small and medium-sized enterprises.

“I believe MISUMI Vietnam can contribute to further development of supporting industries in Viet Nam by providing various high quality products in short and accurate time and with reasonable prices,” he noted.

During the event, vice chairman of the provincial People’s Committee Nguyen Huu Thanh spoke highly on the company’s debut, saying it would contribute to fostering the province’s industry development.

He vowed local authorities would create the most favourable conditions for the company in doing business in Bac Ninh, which was striving to become an industrial province by 2020. 

Laws urgently needed for bad debt settlements: PM     

Streamlining legal regulations and making a specific law on restructuring of credit institutions and settling bad debts are very necessary and must be done urgently, Prime Minister Nguyen Xuan Phuc said.

At a Government meeting on Tuesday, Phuc said that delaying this would negatively affect the State’s socio-economic management.

The Prime Minister agreed with the proposal of relevant ministries and agencies to submit two legal documents related the issues to the National Assembly (NA): a NA resolution draft on bad debt settlement, and a draft law on revising Law on Credit Institutions and other relevant laws. The two documents must be submitted to the NA at the same time, he said.

As per the State Bank of Viet Nam (SBV) reports, after four years of implementing a project on restructuring the credit institutions (CIs) system in 2011-15, there have been achievements such as restructuring a number of ailing banks, ensuring the safety of the banking system and assets of the State and the people.

However, because of inadequate legal regulations, there remain obstacles to speeding up the restructuring of ailing banks and settlement of bad debts.

When the SBV is dealing with weak CIs, the current regulations are found to be inadequate. According to the central bank, the process of recovery and restructuring of weak CIs is difficult because there is no legal basis for applying solutions suitable to the situation. Also, there is no effective financial support to help weak CIs recover.

The law on the handling of mortgaged assets to recover debts still has many inadequacies related to the confiscation of mortgaged assets, especially land, which limits the progress and effectiveness of debt settlement.

Most of the hindrances come from existing laws, so to thoroughly deal with these shortcomings, it is necessary to issue specific laws that will ease the difficulties and facilitate the restructuring of weak CIs and bad debt settlement, the SBV said.

According to the SBV, specific laws on restructuring of credit institutions and bad debt settlement need to be issued urgently. It will contribute to sustainable, safe and effective development of the CIs system, and protect the legitimate interests of depositors, it said. 

Foreign exhibitors flock to food, hotel expo     

The biennial Food & Hotel Vietnam, the country's leading international food and hospitality trade exhibition, which is held in April, has attracted many exhibitors from around the world seeking to tap the promising Vietnamese market.

This year’s event will have more than 10,000sq.m of space and feature more than 520 local and international exhibitors from 31 countries and territories, BT Tee, general manager of UBM VES, one of the expo’s organisers, said.

It would also feature 20 international group pavilions, the highest number ever, he said.

There would be a wide range of food and beverage products, including fresh fruits and fruit products, meat, poultry, seafood, tea, coffee, food ingredients and additives, milk and dairy products besides equipment and services for the food and hospitality industry, he said.

The expo will also see culinary and barista competitions, conferences on hotel investment and business in Viet Nam and other topics.

Briefing the press in HCM City on April 12, Tran Viet Dung, deputy director of VCCI Exhibition Service Co., Ltd, the local organiser of the event, said Viet Nam’s population of more than 90 million make the food and beverage sectors appealing to local and international investors.

The sectors are expected to maintain an annual growth rate of more than 10 per cent through 2020, he said.

With the tourism industry in robust health, the number of foreign visitors keeps rising, increasing demand for hospitality and food equipment and services, he said.

Didier Lachize, general manager of New Viet Diary, a distributor for several global food industry players, said his company would exhibit more than 500 products from around 20 countries at the show, including organic food products.

Global organic consumption has increased strongly in recent years and the trend would continue, he said.

Food & Hotel Vietnam 2017 will be held from April 25 to 27 at the Saigon Exhibition and Convention Centre 

Deputy PM calls for sustained growth effort     

Deputy Prime Minister Trinh Dinh Dung revisited the themes of macroeconomic stability and sustainable development yesterday as he urged a concerted effort to reach future growth targets.

In a first quarter review meeting with various departments, agencies and businesses, he also stressed the importance of maintaining trade balance and keeping inflation for the year to under 4 per cent.

The Deputy PM emphasised the need for increased productivity and efficiency in the oil and gas industry and greater support for the textile and footwear industry, given its high localisation rate and potential for employment generation as well as greater market penetration.

The domestic car industry and electronic parts manufacturing should also receive encouragement to better integrate into the global value chain, he said.

He reiterated the importance of geographical identification in boosting export value for made-in-Viet Nam products, saying this would also boost product quality and their domestic market share.

Hoang Quoc Vuong, Deputy Minister of Industry and Trade (MoIT), gave an assurance that his ministry would work closely with companies and business associations to resolve difficulties that they were facing.

Vuong also asserted that the oil industry’s current goal of exploiting an additional one million tonnes of natural gas this year is feasible with adequate effort.

He said mining industries need a broader market share at home and abroad for better returns, while the electricity sector and other manufacturing industries would be driven by the nation’s economic growth.

Diep Thanh Kiet , Deputy Director of the Viet Nam Leather, Footwear and Handbags Association, said that the footwear industry would continue to focus on its main import markets in the United States and in Europe without leaning towards any particular one towards ensuring a balanced export turnover.

Dung asked the Ministry of Agriculture and Rural Development to focus on restructuring the agriculture sector towards tackling climate change challenges, minimising natural disaster impacts and generating higher product values.

Nguyen Xuan Cuong, Minister of Agriculture and Rural Development, responded that the ministry would focus on improving domestic agricultural value chain and food safety.

Despite the agricultural sector’s poor performance in the first three months of 2017, recording a 2.05 per cent growth rate, Cuong was confident that the targeted growth rate of 2.5 to 2.8 per cent for 2017 would be achieved.

His ministry would collaborate with foreign chambers of commerce to expand Viet Nam’s export markets, with particular attention to China, India and other ASEAN countries as trade partners with the highest growth potential, Cuong said.

The Deputy PM called for more precise and effective policy frameworks to attract investment for infrastructure construction, mainly for transportation, energy and real estate sectors.

He asked the Ministry of Planning and Investment to work with the MoIT and the General Statistics Office to clearly define growth strategies and monitor their implementation in each and every sector under their purview.

The corporate sector, meanwhile, should take all possible economic scenarios into account in drawing up its own growth plans, he said.

Other points of interest mentioned by the Deputy PM included the need for regular, detailed research, quarter on quarter and year on year, on market demand and growth forecasts for domestic industries, particularly those with high added value. 

Can Tho reviews economic plans     

A Can Tho leader has said the city should co-ordinate with relevant ministries and other agencies to draw up economic plans, using all available resources and improving incomes and the city’s economic vitality and quality of life.

Truong Quang Hoai Nam, deputy chairman of the city People’s Committee, was addressing the 2017 Annual Economic Forum yesterday, which was attended by nearly 100 economists and experts.

Through the meeting, the city government seeks advice from experts on planning, the environment, land issues, taxation, and administrative reform.

Huynh Van Tung, deputy director of the Can Tho Institute for Socio-Economic Development Studies, said Can Tho’s economy has grown by an average of nearly 14 per cent a year in the past decade.

The city’s average income is estimated at nearly VND65 million (US$2,850), exports this year are expected to be $1.28 billion and retail sales of goods and services are forecast to be VND16 trillion.

Around 60,000 jobs are expected to be created. But Tung said the economy faces major challenges.

Many of the targets set under a resolution adopted by the city People’s Council have not been achieved, economic growth is not as high as expected and falls short of the city’s potential and status as a centrally run city and the heart of the Mekong River Delta region.

Assoc Prof Dr Vo Thanh Danh of the economics faculty at Can Tho University said the financial and human resources available are inadequate for the city’s economic growth.

Moreover, restructuring of the workforce has not been thorough in sectors with high labour productivity, he said.

He also pointed to a failure to take full advantage of the city’s tourism potential, especially in utilising the capacity of its airport.

Nam thanked the experts for their inputs and promised that the administration would review and speed up the allocation of funds for projects and for public spending.

It would focus on assisting businesses, especially the industrial sector, based on the Government’s Resolution 02/NQ-CP, through a number of measures that would mitigate the difficulties faced by businesses and foster the markets, he said.

The measures would include focusing all possible resources on developing infrastructure and improving vocational training, strengthening communication campaigns to raise awareness of the ASEAN Economic Community among public servants, businesses and the public, bolstering trade promotion at home and abroad, tapping all available opportunities to develop exports, encouraging the agricultural, forestry and fisheries processing sectors and improving the quality and value of agricultural, forest and aquatic produce.

The city is also striving to adopt new production technologies and foster exports of new products with high value-addition, including in the footwear, garment and textile and handicrafts sectors.

It will also focus on administrative reform to attract investments, considered a vital factor in increasing production and exports.

To support the development of small- and medium-sized enterprises, the city will establish a zero-interest credit guarantee fund for small businesses and start-ups, guide investment promotion activities and issue a list of projects requiring investment, including foreign.

Tourism businesses will work closely together to launch trips to various cities and provinces nation-wide. They will improve facilities and tourism services and help preserve traditional culture to develop tourism into a key economic sector by 2020. 

Vietcombank's $352.9mn bond issue approved

The State Bank of Vietnam (SBV) has given approval to a bond issuance by the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) this year, with a maximum value of VND8 trillion ($352.9 million).

The interest rate will be decided by Vietcombank in accordance with market rates and SBV regulations. Eligible buyers are Vietnamese and foreign organizations and individuals, excluding credit institutions and their subsidiaries and branches of foreign banks.

The plan includes a buy-back option. The SBV requires Vietcombank redeem its bonds and ensure that it complies with capital adequacy ratio (CAR) requirements. In the event the bonds are included in Tier 2 capital, any repurchase must comply with regulations.

Vietcombank also gained approval from the SBV last year to issue bonds with a maximum par value of VND8 trillion ($352.9 million). The issuance was successful, according to a report presented at the Business Review Conference, and included VND6 trillion ($264.7 million) in Tier 2 capital.

Of the VND8 trillion ($352.9 million) issued, convertible bonds with no asset-backed guarantees with a face value of VND2 trillion ($88.2 million) and a ten-year tenure were sold to the public. The interest rate was calculated as the reference interest rate plus 1 per cent, or 7.57 per cent per annum in the first year.

Vietcombank is one of the four largest joint stock commercial banks in Vietnam and was equitized in 2008. On June 30, 2009, its shares were officially listed on the Ho Chi Minh Stock Exchange (HoSE). Its market capitalization now stands at nearly VND133 trillion ($5.9 billion) and it is in the Top 10 largest caps on HoSE.

Businesses urged to promote incorruptible operations

Promoting anti-corruption and creating a healthy and transparent business environment will improve productivity as well as enhance competitive capacity, prestige and position of enterprises.

Deputy Secretary General of the Vietnam Chamber of Commerce and Industry (VCCI) Nguyen Quang Vinh said at the conference themed “Fostering a better business environment through collective actions in business integrity in Vietnam” held in Hanoi on April 12.

The event, jointly held by the VCCI, the Centre for Social Governance Research (Censogor) and the Danish Embassy in Vietnam, drew the participation of economic experts, business associations as well as relevant authorities.

Boosting business transparency is of important significance and the issue has been discussed deeply at numerous regional and international business forums and conferences, Vinh stressed.

He said each company should exercise integrity in every business activity by using the toolkit for resisting corruption - a product in the initiative to bolster the incorruptible business environment.

The move also helps change the public awareness of anti-corruption, Vinh added.

Meanwhile, Censogor managing director Nguyen Thi Kieu Vien said that collective actions are hailed as an effective measure to prevent corruption in many countries, including Vietnam.  

The collective actions should focus on risk evaluation if there is bribery and corruption, implementing anti-corruption policy and supplying guidance on solutions for managers.

In addition to sharing internal anti-corruption policy, enterprises should join hands with their suppliers and partners to find out more effective collective actions to fight corruption.

Dragon fruit farmers supported with energy-saving lights

More than 2,300 households growing dragon fruits in Binh Thuan, Long An, and Tien Giang provinces have been assisted to replace 2 million incandescent bulbs with energy-saving lights from July 2014.

The Southern Power Corporation of the Electricity of Vietnam (EVN SPC) held a conference in the south central coastal province of Binh Thuan on April 12 to review a programme assisting farmers with energy-saving lights in 2014-2016.

When buying the 20W compact lamps from domestic lamp businesses of Dien Quang and Rang Dong, farmers will enjoy a discount of at least 10 percent compared to the normal retail price on the market and late payment of 3-6 months.

The programme worth over 17.5 billion VND (772,000 USD) also supported farmers to install lights and apply safety usage measures.

Close to 54,523 MWh of electricity could be saved each year, equivalent to 82 billion VND (3.6 million USD).

Deputy Director of the SPC Nguyen Phuoc Duc said the use of energy-saving lights helps farmers reduce agricultural production cost and increase their awareness of electricity saving and safe production.

It also contributes to reducing the emissions of 200,000 tonnes of CO2 and protecting the environment, he added.

Binh Thuan is home to over 26,000 hectares of dragon fruits involving 20,000 farming households.

More than 81 percent of lamps used for growing dragon fruit at present are energy-saving.

Competitiveness of logistics sector strengthened

The Vietnam Logistics Business Association (VLA) on April 12 launched the implementation of the Prime Minister’s decision approving an action plan to improve competitiveness and development of logistics services by 2025.

VLA President Le Duy Hiep said that this is the first national action plan on the logistics sector which is determined a high added value sector.

Under the plan, the sector aims to contribute 8-10 percent to gross domestic product (GDP) by 2025.

It also strives to achieve 15-20 percent service growth, reduce costs by 16-20 percent of GDP and rank 50th or better globally in terms of national competitiveness. 

Attention will be paid to forming leading logistics businesses that have good competitiveness, attracting investment in infrastructure, building logistics centres on regional and international scales, and improving the links between Vietnam and other countries.

At present, the logistics sector has a growth rate of 16-20 percent and is one of the sectors with the best and most steady growth. It is key to increase businesses’ competitiveness in the intensive integration. However, logistics costs remain high and infrastructure remains weak.

Central Highlands develops large-scale cattle farming

The Central Highlands provinces have transformed cattle farming from a traditional, extensive grazing smallholder system to a more intensive, large-scale production to improve income of many local ethnic minority households.

According to the Central Highlands Steering Committee, Dak Lak, Gia Lai, Kon Tum, Dak Nong and Lam Dong have taken the advantage of favourable weather condition and large areas for growing forage crops and launched a number of incentives to facilitate the development of stall-fed cattle farms.

The provinces now have thousands of cattle farms breeding more than 100 cows or buffaloes each.

Many smallholder families from the ethnic minority groups have no longer raised one or more cattle in the traditional extensive grazing production mostly for home consumption or asset accumulation.

They have increased their farm size to dozens of cattle with stall feeding and shifted to growing foreign breeds with higher meat yield, for example, Zebu originating in South Asia.

This has helped improve the efficiency and quality of cattle production, thus lifting them out of poverty.

Cattle farming accounted for approximately 81 percent of the total value of the Central Highlands region’s breeding industry and grew at an average pace of more than 7.1 percent annually.

It earned the region over 25 trillion VND (1.1 billion USD) in 2016, with the largest earners being Dak Lak, Lam Dong and Gia Lai.

The region is home to more than 962,000 cattle, including about 862,000 cows.

Domestic businesses eye rural retail market

Domestic businesses are seeking to develop the rural retail market given fierce competition from foreign rivals, according to Cong Thuong (Industry & Trade) newspaper.

Vietnam was listed among the world’s 30 most attractive retail markets by the US’s AT Kearney Company.

Statistics from the Ministry of Industry and Trade showed that foreign-invested companies make up about 17 percent of retail market share via trade centres and supermarkets and 70 percent via convenience stores.

President of the Vietnam Retailers Association Dinh Thi My Loan said the Vietnamese retail market has become more attractive since the country signed free trade agreements.

Policies attracting customers and increasing competitiveness have been implemented, she added.

Some foreign firms have increased their engagement in the race to dominate retail in Vietnam.

For example, Aeon – a Japanese retail giant, has opened four trade centres in Vietnam and plans to increase this number to 20 by 2020.

Japan’s 7-Eleven convenience store chain also announced plans for stores in Ho Chi Minh City last February.

Other overseas groups such as Lotte of the Republic of Korea and Central Group of Thailand have expanded their market share in Vietnam and plan to double and triple their number of stores in the upcoming years.

Therefore, the expansion of goods distribution in rural areas is considered a way for domestic companies to increase competitiveness.

Director of the Business Studies and Assistance Centre Vu Kim Hanh said rural areas have high potential.

If domestic companies don’t seize the chance to dominate this segment, foreign retailers will make use of it, she added.

Vo Van Quyen, head of the Domestic Market Department under the Ministry of Industry and Trade, said the golden population structure and increasing local income are attractive factors of the rural market.

Average purchasing power in rural areas has grown 15 percent in recent years, he said, adding that Vietnamese retailers could secure the rural market by selling products at reasonable prices.

To dominate this market, Vingroup plans to open an additional 70-80 supermarkets and 1,500 stores in remote districts.

Meanwhile, the Saigon Union of Trading Co-operatives (Saigon Co.op) has built a strategy to make inroads into the rural market via selling essential commodities at supermarkets and convenience stores.

Lao Cai advised to invest more in developing tourism

Prime Minister Nguyen Xuan Phuc has instructed Lao Cai province to focus on developing its tourism, which is considered a key economic sector in the fight against poverty and the promotion of cultural identities of ethnic groups in the northwestern region.

Talking to local authorities at their working session in the northern mountainous province on April 12, he said that tourism should contribute 30 percent to gross domestic product (GDP).

In the 2011-2015 period, the sector contributed to 11.5 percent of the province’s GDP. Last year, Lao Cai served 2.77 million tourists, up 33 percent from the previous year.

It is striving to welcome more than 6 million tourists, and become a key tourism centre of the northwestern region by 2020, with Sa Pa becoming a national tourism site.

At the event, the Government leader also instructed the province to boost border gate economic development.

Promoting border gate economic development is a way for Lao Cai to build the locality into a commodity entrepôt for countries in the Mekong sub-region and China as well as a modern logistics centre for the region, connecting with seaports, airports, railways, and road transport, he stated.

He required the locality to deal with issues related to the environment and social security and strive to fulfil its socio-economic tasks in 2017, particularly in completing the disbursement of investment capital for infrastructure development.

Responding to the province’s proposals, PM Phuc agreed to invest in developing the Lao Cai border gate economic zone into a commodity entrepôt for countries in the Mekong sub-region.

Furama Resort Danang conferred the Golden Dragon award

Furama Resort Danang has just received the Golden Dragon award 2016 for its achievements and contributions.

The award is held annually by the Vietnam Economic Times (VET) in collaboration with Foreign Investment Agency (under the Ministry of Planning and Investment), and Furama Resort Danang has received this for eight times in a row.

The Golden Dragon award is one of the largest held by VET, aimed at recognising foreign-invested enterprises that have achieved outstanding business performance and made significant contributions to the development of Vietnam’s economy. 

The award criteria focus on businesses’ efforts to maintain sustainable development, promote environmental protection and fulfill the corporate social responsibility.

In 2016, Furama Resort Danang reached the growth rate of over 30 per cent, an increase of 20 percentage points compared to its plan, contributing to the tourism revenues of Danang City. Furama Villas’ growth rate alone doubled, 50 per cent surpassing the plan. 

Over 20 years of development, Furama Resort Danang has always tried its utmost to maintain the leading status in Vietnam’s market of luxurious beach resorts, owing to the resort’s efforts to improve management and diversify services, especially culinary services in order to meet various demands of tourists.  

“After putting the Ariyana Danang Exhibition & Convention Centre (ADECC) into operation to welcome APEC 2017, we will become a worth -experience destination in Danang. Winning the Golden Dragon award has proved our efforts in offering the high-quality services, considerably contributing to tourism development of Central region and Vietnam,” said Matthias Wiesmann, general manager at Furama Resort Danang.

Along with interest generation, contributing to the national budget as well as supporting the economic growth, Furama Resort Danang is well known for its great contributions to society through a number of programs such as Tet traditional culinary events, support programs for children at Danang’s SOS village, a program of “Go Green @ Fabulous Furama”, aimed at encouraging guests to contribute more to a green living and better environment.

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