Spring fair to offer goods for Tet     

The Spring Fair 2017 will take place at the Ha Noi International Exhibition Centre in Ha Noi from January 17-24, the event’s organisers announced on Thursday.

More than 300 enterprises from 35 provinces and cities nationwide are expected to participate in the upcoming event, showcasing essential products and specialties from all parts of the country at approximately 500 booths.

On display will be food and foodstuffs, beverages, textiles and garments, footwear, and electronics, in addition to furniture, pottery, gifts and handicrafts.

The annual fair will be a good opportunity for domestic businesses to introduce their products in order to better serve purchasing demands prior to the Lunar New Year (Tet) and encourage local people to use Vietnamese products, organisers said.

A previous event saw the participation of 800 domestic firms, displaying a variety of goods across 1,000 pavilions. 

CMC Group targets $222 million turnover in 2018     

CMC Group has targeted a turnover of VND5 trillion (US$222.2 million) and profit of VND500 billion by 2018.

Last year, the group’s turnover was estimated at more than VND4.2 trillion, increasing 11 per cent from the previous year and contributing VND145 billion to the State budget.

Group chairman Nguyen Trung Chinh said CMC has launched its new brand name recognition with slogan “toward a digital future,” focusing on three strategy pillars -- system integration, software and telecommunication.

Accordingly, CMC would develop special technological solutions for each customer group, with the goal to become number one in network security, infrastructure and large data. It would also shift to new methods of cloud and software-as-a-service (SaaS). The one-stop-shop model would be built to bring high-added value to customers in the telecommunication sector.

Nguyen Thanh Hung, deputy minister of information and communication, said CMC has achieved success thanks to its desire to change.

After 23 years of operation, the group has more than 2,000 employees working at 10 subsidiaries and institutes. It has targeted investment in human resources by building a dynamic working environment. 

OV remittances contribute to national development

The increasing amounts of remittances sent back to the homeland by overseas Vietnamese over the past few years have helped the country offset its trade deficit, reduce poverty, and improve living standards of recipients.

Currently, nearly 4.5 million Vietnamese people are living and working in over 100 countries and territories around the world.

In 2000, Vietnamese expatriates sent 1.75 billion USD to the homeland, which went up 117 percent to touch 3.8 billion USD in 2005. 

The volume continued climbing to 8 billion USD in 2010. Also that year, Vietnam was ranked 16th out of the 20 nations receiving the biggest amounts of remittances by the World Bank, and the second in Southeast Asia, after the Philippines.

In 2013, Vietnam entered the top 10 recipients of remittances with 11 billion USD. The country was ranked third in Asia and 11th in the globe in attracting remittances in 2015, with over 13.2 billion USD.

In the 2002-2015 period, the flow of remittances was equivalent to 6 percent of the nation’s gross domestic product (GDP) and nearly equivalent to foreign direct investment (FDI) which made up 7.7 percent of GDP, and doubling official development assistance (ODA) capital that accounted for 3 percent of GDP.

Despite a decline, the volume of remittances transferred to the country still reached about 9 billion USD in 2016.

Over 70 percent of the remittances are poured into production and business while 20 percent are injected into real estate.

The remittances have helped Vietnam have a stable source of foreign currency earnings, increase the national foreign currency reserves, and reduce its dependence on foreign capital and pressure from the USD exchange rate.

Ho Chi Minh City is leading the nation in attracting remittances. According to the State Bank of Vietnam’s branch in HCM City, around 50 percent of the remittances transferred to Vietnam go to the southern metropolis.

The city received about 5.5 billion USD of remittances in 2015, a year-on-year rise of 10 percent. The figure dropped to 5 billion USD in 2016.

More than 80 percent out of 1,100 overseas Vietnamese-invested enterprises are operating in HCM City.

AIIB eyes infrastructure development in Vietnam

The Asian Infrastructure Investment Bank (AIIB) wants to invest in infrastructure development, particularly railways, highways and seaports, in Vietnam, said AIIB President Jin Liqun.

Jin made the statement at a meeting with Party General Secretary Nguyen Phu Trong, who is in a visit to China, on January 13.

Acknowledging the contribution of Vietnam to the establishment of the AIIB, he noted that the construction of transport infrastructure in the country will help develop links with other ASEAN member countries.

Jin vowed to work closer with the Vietnamese side in designing future projects and do his best to make cooperation in the field yield practical outcomes.

For his part, Party General Nguyen Phu Trong congratulated the bank on the progress it achieved during one year since its foundation.

He said Vietnam and China have reached several bilateral agreements on connecting economic infrastructure during his visit, adding that infrastructure development is one of the three strategic breakthroughs in Vietnam’s reform and industrialisation-modernisation process.

Trong said Vietnam is looking for support, including those from the AIIB, in human resources, investment and management capacity.   

The same day, the Party chief met with Chairman of the Sunwah Group, Jonathan Choi, whose family has three generations doing business in Vietnam.

Trong said Vietnam always creates favourable conditions for foreign investors to operate in the country.

Jonathan Choi said he wishes for further assistance from the Vietnamese Government in expanding the group’s operation in Vietnam, particularly in the construction of seaports, railways, subways and underground pedestrian crossings.

Ha Nam authorities meet with foreign-invested firms

Authorities of the northern province of Ha Nam met with over 100 foreign direct investment (FDI) businesses on January 12.

Chairman of the provincial People’s Committee Nguyen Xuan Dong recognised contributions made by FDI companies to diversifying economic sectors, restructuring the economy, and generating jobs.

In 2016, Ha Nam granted investment licences to 31 FDI projects with total newly-registered capital of over 610 million USD.

The province currently has 186 foreign-invested projects from 11 countries and territories with total registered and adjusted capital of over 2.1 billion USD.

FDI firms contributed more than 1.53 trillion VND (67.7 million USD) to the State budget, accounting for 32.7 percent of the provincial total budget and creating jobs for about 60,000 workers.

Businesspeople proposed the province address issues like electricity supply, clean water, industrial waste treatment, and environmental hygiene, as well as traffic safety, labour resources and quality, and lighting.

Local authorities took note of these proposals and pledged to handle the shortcomings. 

They asked investors to speed up the implementation of projects which were granted investment licenses, reform technology to increase productivity, reduce production costs, increase competitiveness, and make use of domestic and export markets.

Businesses were also urged to ensure the legitimate rights and interests of workers.

MoMo app wins Asian Banker best mobile payment solution

Launched in June 2014, MoMo, a mobile payment service providing financial services to low income customers in Vietnam, has won the award for best mobile payment solution of 2016 by the Asian Banker.

The MoMo payment app currently works with more than 100 service providers throughout Vietnam enabling low income customers to load cash into their M_Service online account, withdraw it when they want, make bill payments, and other activities that most people generally do through a regular bank account.

MoMo provides new channels for customers who don’t have a regular bank account at a financial institution, who have a mobile phone, to access traditional retail financial services customarily provided by the bank’s debit and credit cards,via an extensive distribution network of online mobile operators.

The payment system, said Duc, is integrated with 24 domestic banks, as well as international payments networks including Visa, MasterCard and JCB.

Gov’t to further classify and equitise businesses     

Based on a recent decision issued by Prime Minister Nguyen Xuan Phuc on the classification of State-owned enterprises from 2016 to 2020, a total of 240 businesses will be listed as under government management.

Out of the 240, 103 businesses have 100 per cent of their charter capital held by the government, including 62 provincial lottery companies and the Viet Nam Lottery Company (Vietlott).

The Vietnam Railways, Vietnam Oil and Gas Group, the Electricity of Viet Nam along with three state-acquired banks of Global Petroleum Bank, Vietnam Construction Bank and Ocean Bank Vietnam will continue to be completely owned by the government.

Other businesses in important socio-economic sectors such as national defence and security, telecommunication, bill printing, gold smelting, publishing and marine insurance are also on the list.

Four notable businesses owned 65 per cent by the State are the Vietnam National Coal - Mineral Industries Group, Vietnam Bank for Agriculture and Rural Development, PetroVietnam Exploration Production Corporation and the Vinaconex investment and mineral trading Co. Ltd.

Twenty-seven State-owned enterprises at 50 per cent to 65 per cent total charter capital belonged to major fields such as telecommunication and food production, whereas 106 companies with less than 50 per cent state ownership were all sorts of major businesses, such as the Saigon Jewellery Company or the Vietnam Multimedia Corporation.

The decision is set to take effect on February 15, 2017.

Vietnam’s demands for senior, mid-level managers skyrocket in 2016: report

There was a sharp increase in the recruitment demands for senior and mid-level managers in Vietnam in 2016 while new industries have been forecast to emerge in 2017, according to a recent report.

The demands for such managerial positions rose by 54% in 2016 compared to that in the previous year, Navigos Search cited the findings of its study in a press release on January 9.

Despite a slight decrease (5%) in the recruitment demands for senior and mid-level managers in Quarter 4 in comparison with the third quarter, the overall rise still reflects a strong growth rate recorded over the last two years.

Manufacturing, consumer goods, and finance-banking topped the list in terms of recruitment demands for the group of personnel in the fourth quarter, accounting for 37%, 18%, and 11%, respectively.

They are also the three sectors which consistently contributed the highest recruitment demands in the entire year.

Regarding the manufacturing industry, the electricity-electronics segment saw the highest recruitment demands, while beverages were ranked first among the consumer goods segment.

For the finance-banking industry, personal consumer finance and corporate banking services saw the highest demands for senior and mid-level managers.

Several changes were also recorded last year, one of which was the suspended expansion of some large projects in the manufacturing industry, which affected the recruitment plans of several businesses.

According to Nguyen Phuong Mai, managing director of Navigos Search, the suspension may have stemmed from the impacts of the post-election of the US, with reports that the country will withdraw from the TPP (Trans-Pacific Partnership) agreement.

‘Brain drain’ became increasingly serious in the 2nd half of 2016, as more and more local talents in IT, accounting, and auditing went abroad to work.

In 2017, new industries including advertising and communication are forecast to develop fast after a series of merger and acquisition deals were finalized in 2016.

Non-life insurance is also predicted to grow as many companies are introducing many new products to the market, including some products never offered before in Vietnam.

Recruitment in this segment will face new challenges as not many Vietnamese candidates have sufficient experience required by employers.

Navigos Search is the leading provider of executive search services in Vietnam with experienced and qualified consultants as well as a comprehensive database.

Danish enterprises explore Vietnamese market

The Ho Chi Minh City Investment and Trade Promotion Centre (ITPC) and the Andersen Consult Group of Denmark co-hosted a networking programme on January 10 to boost partnerships between Vietnamese and Danish enterprises.

Danish firms evaluated Vietnam as a potential market for high-quality products such as organic foodstuffs and machinery used in aquatic product processing and production. 

A number of Danish retailers also want to enter the Vietnamese market thanks to its big-sized population and high economic growth.

A representative from FynboFoods said the company’s products have high quality, competitive prices and ensure food hygiene, therefore, it can meet various demands of consumers in different nations.

FynboFoods wants to cooperate with domestic supermarkets and retailers to bring Danish foodstuffs and services to Vietnamese consumers.

Pham Thi Thu Huong, Deputy Director of Dong Phong Mechanical Company, spoke highly of Danish mechanical machines, saying that aquatic product-processing equipment of Denmark can satisfy the requirements of such demanding markets as the US, Europe and Japan.

According to Huong, cooperating with Danish partners will offer opportunities for Vietnamese firms to become distributors of Danish products and accessing to their technologies, thus improving their products to meet the market’s demands.

Central Highlands urged to improve investment promotion

Head of the Steering Committee for the Central Highlands To Lam asked the region to improve investment promotion methods to draw investors to high-tech agriculture, clean energy, processing industry, cattle breeding and tourism during a meeting in Dak Lak province on January 10.

Lam, who is also Minister of Public Security, urged the committee, regional authorities, Party units, ministries and agencies to fully grasp the resolution adopted by the 12th National Party Congress and others set at the fourth plenum of the 12th Party Central Committee, in order to direct socio-economic development and ensure national defence-security. 

On the economic front, localities were asked to review socio-economic and sectoral planning, speed up the restructuring of public investment, State-owned enterprises and agriculture in tandem with new rural development while facilitating start-ups. 

On land issues, the region needs to push forward forest planting and seriously abide by the Prime Minister’s directions on forest management and protection, shutdown of natural forests and sustainable forest recovery, he said, adding that localities should consider devising special mechanisms to rally resources for regional transport connectivity and improve ethnic groups’ well-being. 

Regional localities were also required to consolidate grassroots political systems, with a focus on improving the quality of Party units and members in key areas. 

Despite prolonged drought last year, the regional gross domestic product surpassed 151 trillion VND (6.56 billion USD), up 7.47 percent annually while the gross regional domestic product per capita hit 39.56 million VND (1,720 USD), up 8.57 percent. 

Total social investment reached 78.79 trillion VND (3.42 billion USD), a 7.25 percent increase. 

The number of newly-established firms and registered capital rose year-on-year. 

Thanks to the adoption of technological advances, agricultural production recovered quickly from drought. More attention was also paid to forest protection and development. 

Positive results were recorded in the national target programme on new rural development and policies targeting ethnic minority groups. 

Participants proposed offering more incentives to farming enterprises, allocating production land for ethnic minorities, and rallying resources for transport infrastructure connectivity in the region and adjacent areas. 

At the event, Lam presented gifts, each worth 500,000 VND (21.7 USD), to 7,400 poor residents in the Central Highlands and mountainous districts bordering the region on the occasion of the upcoming Lunar New Year.-

Vietnam gives priority to multifaceted cooperation with Russia

President Tran Dai Quang affirmed Vietnam's readiness to boost all-around cooperation with Russia, especially in economics, trade and investment at a January 10 reception for Prime Minister of the Government of the Republic of Bashkortostan of Russia R.Kh. Mardanov in Hanoi.

Vietnam praises the signing of a cooperation agreement and action programme between Bashkortostan and the central province of Ba Ria – Vung Tau, Quang told his guest.

He expressed his wish that companies from Russia and Bashkortostan will expand investment in Vietnam and reiterated Vietnam's willingness to provide all possible support for foreign enterprises, including those from Bashkortostan to do long-term business in the country. 

President Quang suggested both sides should consider expanding cooperation in such potential fields based on each side’s strength and demand. 

Quang also thanked the Bashkortostan administration for assisting Vietnamese nationals and students major in oil and gas in the country. 

Mardanov said his visit aims to supplement leaders’ commitments to developing bilateral ties. 

He thanked the Vietnamese nationals and businesses for contributing to the host country’s economy, adding that a number of business representatives accompanied him during the visit to explore opportunities for broader cooperation in oil and gas, and agriculture.

Meeting with Mardanov the same day, Deputy Prime Minister Trinh Dinh Dung highlighted cooperation between localities of Vietnam and the Republic of Bashkortostan of Russia as a contribution to developing Vietnam-Russia relations.

Vietnam always places priority on promoting ties with Russia politics, economy, national defence-security, science-technology, culture, tourism and cooperation between localities, Dung said.

The underway free trade agreement between Vietnam and the Eurasian Economic Community will give Vietnamese and Russian investors, including those from Bashkortostan more chances to enhance ties in agriculture, oil and gas, and mechanical engineering, he added.

Mardanov in turn told his host that Bashkortostan and the central province of Ba Ria – Vung Tau signed a cooperation agreement to boost bilateral ties in the time ahead.

Binh Dinh economic zones expect bumper 2017 investment

The south central coastal province of Binh Dinh aims to attract 6.5 trillion VND (305.5 million USD) to its economic zones in 2017, up 8.6 percent from last year, said Ngo Van Tong, deputy head of the Binh Dinh Economic Zone Administration.

The zones target an industrial production of 17.23 trillion VND (78.3 million USD), export revenue of 268 million USD and budget payment of 500 billion VND, said Tong, adding that firms in the zones hope to create 18,000 jobs.

To hit these goals, the province will adjust the planning of the Nhon Hoi Economic Zone, while considering the approval of Long My industrial park’s second phase and speeding up ground clearance.

The locality will also support investors in carrying out administrative procedures, while supervising the implementation of licenced projects, said Tong.

In 2016, Binh Dinh lured 12 investment projects to Nhon Hoi Economic Zone with total capital of 4.08 trillion VND, raising the number of projects to 52 with combined investment of nearly 36 trillion VND, 7.76 trillion VND of which has been disbursed.

Local industrial parks also attracted 20 projects worth 1.9 trillion VND, making the total projects hosted by them 225 with total investment of 10.58 trillion VND.

Total revenue of the province’s economic zones and industrial parks hit 21 trillion VND, a rise of 15.38 percent year on year. Firms paid 500 billion VND to the State budget and employed 17,000 labourers who earn 3.6-3.8 million VND per month.

Thai Nguyen industrial zones target 200 million USD in investment

The northern province of Thai Nguyen aims to attract at least 10 projects to local industrial zones with total registered capital of 200 million USD in 2017.

Measures Thai Nguyen plans to implement to achieve the goal include administrative reform, completing infrastructure in industrial zones, assisting enterprises and increasing promotion activities.

Phan Manh Cuong, head of the Thai Nguyen province’s Management Board of Industrial Zones, said it would boost dialogue with investors to discover difficulties facing them.

The board also plans to boost supervision of total discharge and treatment of industrial zones and speed up land clearance for new industrial zones, Cuong said.

According to the management board, in 2016 industrial zones in Thai Nguyen attracted 30 new projects, including 22 foreign direct investment projects with total capital of 126.84 million USD and eight domestic projects with combined capital of more than 1 trillion VND (45 million USD).

The industrial zones now house a total of 164 projects in total, 83 of which are foreign direct investment projects worth seven billion USD and 81 domestic projects worth 11.9 trillion VND (545 million USD).

Enterprises in industrial zones have provided 90,000 jobs.

The combined revenue of firms in industrial zones in Thai Nguyen in 2016 amounted to 20.157 billion USD, with combined export value hitting 19 billion USD.

Danish enterprises explore Vietnamese market

The Ho Chi Minh City Investment and Trade Promotion Centre (ITPC) and the Andersen Consult Group of Denmark co-hosted a networking programme on January 10 to boost partnerships between Vietnamese and Danish enterprises.

Danish firms evaluated Vietnam as a potential market for high-quality products such as organic foodstuffs and machinery used in aquatic product processing and production. 

A number of Danish retailers also want to enter the Vietnamese market thanks to its big-sized population and high economic growth.

A representative from FynboFoods said the company’s products have high quality, competitive prices and ensure food hygiene, therefore, it can meet various demands of consumers in different nations.

FynboFoods wants to cooperate with domestic supermarkets and retailers to bring Danish foodstuffs and services to Vietnamese consumers.

Pham Thi Thu Huong, Deputy Director of Dong Phong Mechanical Company, spoke highly of Danish mechanical machines, saying that aquatic product-processing equipment of Denmark can satisfy the requirements of such demanding markets as the US, Europe and Japan.

According to Huong, cooperating with Danish partners will offer opportunities for Vietnamese firms to become distributors of Danish products and accessing to their technologies, thus improving their products to meet the market’s demands.

Rubber sector enjoys 51-percent profit growth in 2016

The Vietnam Rubber Group (VRG) achieved a pre-tax profit growth of up to 51 percent to over 2.36 trillion VND (103.8 million USD) in 2016, heard a conference to review the firm’s production and business in Ho Chi Minh City on January 10. 

Addressing the event, Standing Deputy Prime Minister Truong Hoa Binh urged VRG to accelerate the equitisation in its subsidiaries, and continue to withdraw capital from non-core business lines.

Along with further enhancing trade promotion and seek new markets, the sector needs to devise measures to save production costs to cut prices, towards promoting the industry’s sustainable development in the coming time,  he stressed. 

He also suggested intensifying the processing of industrial products from rubber, and rubber wood, in order to reduce the export of raw materials, thus improving the sector’s value. 

According to VRG General Director Tran Ngoc Thuan, in 2016, the rubber industry had suffered remarkable impacts from high rubber supply, the declining price of natural rubber and fluctuating oil prices in the world. 

However, VRG has outlined orientations and measures to tackle these problems, Thuan said. 

In 2016, VRG focused on restructuring the sector, promoting the application of advanced technologies and mechanization in production to improve the quality of products. 

VRG’s total revenue grew 14.4 percent against the set plan, reaching over 15.4 trillion VND (677.6 million USD). It contributed 1.15 trillion VND (50.6 million USD) to the State budget, up 39.9 percent year-on-year. 

The company has set to earn an estimated profit of 4.18 trillion VND (183.9 million USD) in 2017, up 47 percent from 2016.

Central Highlands urged to improve investment promotion

Head of the Steering Committee for the Central Highlands To Lam asked the region to improve investment promotion methods to draw investors to high-tech agriculture, clean energy, processing industry, cattle breeding and tourism during a meeting in Dak Lak province on January 10. 

Lam, who is also Minister of Public Security, urged the committee, regional authorities, Party units, ministries and agencies to fully grasp the resolution adopted by the 12th National Party Congress and others set at the fourth plenum of the 12th Party Central Committee, in order to direct socio-economic development and ensure national defence-security. 

On the economic front, localities were asked to review socio-economic and sectoral planning, speed up the restructuring of public investment, State-owned enterprises and agriculture in tandem with new rural development while facilitating start-ups. 

On land issues, the region needs to push forward forest planting and seriously abide by the Prime Minister’s directions on forest management and protection, shutdown of natural forests and sustainable forest recovery, he said, adding that localities should consider devising special mechanisms to rally resources for regional transport connectivity and improve ethnic groups’ well-being. 

Regional localities were also required to consolidate grassroots political systems, with a focus on improving the quality of Party units and members in key areas. 

Despite prolonged drought last year, the regional gross domestic product surpassed 151 trillion VND (6.56 billion USD), up 7.47 percent annually while the gross regional domestic product per capita hit 39.56 million VND (1,720 USD), up 8.57 percent. 

Total social investment reached 78.79 trillion VND (3.42 billion USD), a 7.25 percent increase. 

The number of newly-established firms and registered capital rose year-on-year. 

Thanks to the adoption of technological advances, agricultural production recovered quickly from drought. More attention was also paid to forest protection and development. 

Positive results were recorded in the national target programme on new rural development and policies targeting ethnic minority groups. 

Participants proposed offering more incentives to farming enterprises, allocating production land for ethnic minorities, and rallying resources for transport infrastructure connectivity in the region and adjacent areas. 

At the event, Lam presented gifts, each worth 500,000 VND (21.7 USD), to 7,400 poor residents in the Central Highlands and mountainous districts bordering the region on the occasion of the upcoming Lunar New Year.

Thanh Hoa’s IPs aim to lure 15.6 trillion VND in investment

The Nghi Son Economic Zone and other industrial parks in the north central province of Thanh Hoa aim to lure 15.6 trillion VND (687.22 million USD) from domestic and foreign investors, and create jobs for additional 12,000 labourers, including 5,000 for the Nghi Son EZ, in 2017.

They target to earn an industrial production value of 39.1 trillion VND (1.72 billion USD) and export earnings of 490 million USD, and contribute around 3 trillion VND to the State budget.

To that end, Nguyen Van Thi, Head of the Management Board of the Nghi Son EZ and IPs said he has asked relevant bodies to accelerate such key projects as the Nghi Son Petrochemical Refinery Complex, Nghi Son 2 thermal power project, Gang Thep Nghi Son project, thus boosting economic development of the province and the region.

The investment climate will be improved, focusing on reforming administrative procedures.

In 2016, the management board licensed 46 domestic investment projects, worth nearly 10.3 trillion VND (453.74 million USD), and three foreign ones, with a registered capital of 39.8 million USD.

The figures raised the total domestic investment projects to 140 and foreign ones to 13, worth nearly 105 trillion VND (4.62 billion USD) and 12.16 billion USD, respectively.

Together, they produced over 33.74 trillion VND (1.48 billion USD) worth of products, an year-on-year increase of 30 percent, created jobs for over 11,000 people, with an average income per capita of nearly 5 million VND (220 USD).

Local poultry sector eyes Japanese and European markets

The poultry sector is finding ways to export chicken products to choosy markets like Japan and Europe this year, according to Hoang Thanh Van, director of the Department of Animal Husbandry under the Ministry of Agriculture and Rural Development.

Authorities of Dong Nai Province last year held working sessions with the ministry and relevant agencies to develop a comprehensive food safety and bio-security program for poultry, which would facilitate chicken export to Japan.

The Japanese side may send its professionals to Vietnam to conduct checks and decide whether to import chicken meat processed by local enterprises or not.

The southern province of Binh Phuoc is organizing trade promotion programs focusing on Japan, Europe and some Asian nations.

However, Vietnam must meet standards of importing countries such as chicken breeds, farming areas, hygiene, sanitation and feed. Importers will send working groups to the country for inspection, especially to disease-free and bio-security farms.

Tran Duy Khanh, vice chairman and general secretary of the Vietnam Poultry Association, said the sector should find niche markets for exporting local chicken products to avoid fierce competition with neighboring rivals, especially Thailand.

Vietnam may only export chicken breasts, instead of whole chickens, which are popular among Japanese and European customers. In addition, free-range organic chickens in these nations are priced at some US$10 per kilo which only the wealthy can afford to buy. On the other hand, the way their farmers raise these chickens is similar to that of Vietnamese farmers.

Dan On Foods starts work on cashew processing factory

Dan On Foods Corporation has started construction on a cashew processing factory with a total capacity of up to 36,000 tons per year at My Phuoc 3 Industrial Park in Binh Duong Province.

Nguyen Huynh Nghia, deputy general director of the company, said at the groundbreaking ceremony last week that the 60,000-square-meter facility would cost US$32-35 million.

The first phase of the project will be developed on 20,000 square meters at a total cost of US$12-15 million, which is scheduled for completion in October this year. During the first phase, the plant will have an annual capacity of around 10,000 to 12,000 tons. It is expected to be up and running from December this year.

When in place, the factory will process products from cashew nuts, almonds and macadamia.

After phase one is put into operation for two to three years, phases two and three will be implemented with an estimated capacity of 10,000-15,000 tons a year each, Nghia added.

The plant’s products will be for domestic sale and export to markets like the U.S., Canada, China, Hong Kong, Japan and other Asian countries.

Cashew nuts, the main product of the factory, are locally supplied, mainly by the southern province of Binh Phuoc.

Founded in Vietnam in 1999, Dan On Foods, a unit of Dan D Pak Group, specializes in processing products from nuts. In the domestic market, its products are available at supermarkets and convenience stores such as Big C, Aeon Mall, Metro, Vinmart, Family Mart and Circle K.

Shrimp sector looks to US$10 billion export revenue in future

Vietnam’s seafood exports last year amounted to US$7.12 billion, US$3.2 billion of it coming from shrimp. Given that success, enterprises in the shrimp sector are pinning high hopes that shrimp will fetch US$10 billion in annual export revenue in the future.

Nguyen Hoang Anh, general director of Nam Mien Trung Aquaculture Investment Co Ltd in the south-central province of Binh Thuan, said Vietnam has favorable conditions for raising shrimp and expanding its shrimp farming acreage to two million hectares, three times higher than currently.

Le Van Quang, chairman of Minh Phu Seafood Corporation in Ca Mau Province, said he believed that the nation’s shrimp exports could grow strongly in the coming time by increasing farming productivity.

According to the Ministry of Agriculture and Rural Development, the tiger prawn farming area in the Mekong Delta last year reached 569,500 hectares, with output amounting to 251,000 tons, or 440kg per hectare.

Minh Phu Company will cooperate with some provinces to breed tiger prawns using advanced extensive farming techniques so as to increase productivity to one ton per hectare, double the current figure, Quang said.

No matter how volatile shrimp prices are, around 20% of local consumers will stick with tiger prawns, and the remainder with white-legged shrimp.

If the price of tiger prawns is US$1-2 a kilo higher than that of white-legged shrimp, consumers could switch to buying tiger prawns, contributing to a pickup in the export of this type of shrimp.

Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers (Vasep), told the Daily that shrimp consumption in the world could remain flat, so it would be difficult for the country to obtained higher export revenue.

In addition, the Vietnamese shrimp sector is facing strong competition with other exporting countries including Thailand, Indonesia, and India, Hoe added.

Saigon Co.op affiliate debuts on UPCoM

Saigon Co.op Investment Development JSC (SCID), a member of the Saigon Union of Trading Co-operatives (Saigon Co.op), made its debut on the market for unlisted companies (UPCoM) on January 9 with stock code SID.

The firm offered 100 million shares at the reference price of VND20,900 each. At the close of on January 9’s trade, SID soared 39.71% to VND29,200 a share.

The company has total chartered capital of VND1 trillion (US$44 million), which is 94.04% owned by Saigon Co.op. Its market cap stood at VND2.09 trillion based on the reference price on the fist trading day.

Before 2014, the company invested in the retail sector and operated Co.opmart stores. After its restructuring, SCID now concentrates on development and operation of commercial centers, real estate, and management of Saigon Co.op projects.

SCID’s commercial real estate projects are mostly in prime sites. The firm is carrying out a number of property projects in HCMC and the Mekong Delta province of Ca Mau. 

SID has provided consulting services for developers of supermarkets in Vietnam over the past nine years and has played a pivotal role in the fast expansion of the Co.opmart supermarket chain.

The company has developed commercial centers that target low-income people. It has collaborated with other firms to operate SC Vivo City shopping mall in HCMC’s District 7.

In 2015, the enterprise attained revenue of VND244.5 billion, 1.5 times higher than in 2014. However, its after-tax profit reached VND97.5 billion, down from VND121.4 billion in 2014.

15 banks attend $20 billion credit package for businesses

Fifteen commercial banks in HCMC on January 10 registered to provide businesses a credit package of VND241,100 billion (US$10.68 billion) and $10 million under the HCMC Program of Bank-Business Connectivity this year.

The banks registered with the State Bank of Vietnam (SBV) in HCMC and the Department of Industry and Trade at a conference hosted by the city People’s Committee and SBV to review the program’s results last year.

In 2017, the program will focus on hi-tech agro field assisting former trading and production households who have upgraded into businesses and startups, said Mr. Nguyen Hoang Minh, deputy director of SBV HCMC.

Short term interest rate will be 7 percent at the maximum while medium and long term rates will be 8-10 percent.

According to Mr. Nguyen Hoang Minh, last year the program provided nearly 22,000 customers with more than VND281 trillion ($12.45 billion) in loans, 60 percent higher than 2015.

Appreciated results of the program last year, Deputy Chairwoman of the city People’s Committee Nguyen Thi Thu said that the connectivity among banks, districts, businesses and individuals had improved the program’s efficiency, contributing to the city Gross Regional Domestic Product of VND1,024 trillion ($45.37 billion), up 8.05 percent over the previous year.

This year, the program should further corporation with district authorities to promote its achievements, she added.

US firms explore investment opportunity in Binh Duong

A delegation of US firms led by Sivan Yam, President of the US – Vietnam Chamber of Commerce met with authorities of the southern province of Binh Duong to explore investing in the province.

According to Vice President of the provincial People’s Committee Mai Hung Dung, the province’s export value has accounted for 12 percent of the nation’s total value.

Currently, the locality has 26 industrial parks, spanning over 10,500 hectares, and 10 industrial clusters on 707 hectares, with occupation rates at 70 percent and 65 percent, respectively.

Dung pledged that local authorities will offer favourable conditions for investors, including those from the US.

Dung lauded the US investment projects in the province and expressed his hope that the foreign direct investment (FDI) flow from the US to the province will increase, particularly among joint activities to promote ties between the two nations.

Sivan Yam expressed his delight with the achievements the province has made in past years, particularly in infrastructure and administrative reform, and improving the business climate, saying that the province is an ideal investment destination.

As of now, the US has poured over 650 million USD in the province, ranking sixth among investors in the locality.

Most of the US-funded projects are in hi-tech sectors, using a small labour force and environmentally-friendly.-

Vinatex to invest 240 million USD to boost production

The Vietnam Textile and Garment Group (Vinatex) will mobilise 5 trillion VND (242 million USD) for fibre, textile and garment development to boost this year’s production.

Of the total mobilised capital, Vinatex’s general director Le Tien Truong said, the parent company would finance projects worth around 2.4 trillion VND, while the subsidiaries would fund projects for around 3 trillion VND.

In 2016, the group invested 5.5 trillion VND in 41 projects, including 17 garment projects, nine industrial fibre manufacturing projects, nine textile dyeing projects and six machinery upgrading projects.

According to Truong, Vietnam’s textile industry exports in 2016 were estimated to touch 28.3 billion USD, up 5.7 percent year-on-year, while Vinatex’s exports reached 2.5 billion USD, up 5 percent against 2015.

As Vietnamese garment enterprises attempt to penetrate the foreign market, exports to key markets such as the US, EU, Japan and the Republic of Korea are rising, Truong said, adding that in 2017, Vinatex aims 14 percent growth in industrial production value, an increase of 11 percent in exports and a rise of 12 percent in revenue, compared to 2016.

Thua Thien – Hue calls for Singaporean investment in tourism, seaport

The central province of Thua Thien – Hue has held a conference in Singapore to call for Singaporean investment in the province’s key sectors of tourism and sea port.

Addressing the event on January 12, Chairman of the provincial People’s Committee Nguyen Van Cao said Thua Thien-Hue selected Singapore as the first market to promote the local potentials because many Singaporean investors have had effective projects in the province, citing as an example the Banyan Tree Group with the Laguna Lang Co resort.

He told the participants that the locality wants to attract investment in manufacturing factories and services in the Chan May – Lang Co Economic Zone, duty-free zone and Chan May seaport.

Regarding tourism, besides the Hue ancient relic site, the province is looking for investment to develop the Lang Co – Chan May Bay, which was voted as one of the world's 10 most beautiful bays by the Worldbays Club.

The Canh Duong-Lang Co Tourism Site has been approved by the Prime Minister as one of the four national tourism areas in the Master Plan for tourism development in the north central region by 2020, and a vision through 2030.

Director General of Banyan Tree Lang Co Gavin Herholdt said the province has huge tourism potential, plus its connection with other destinations in the central heritage route.

He noted that the Chan May seaport can handle the world’s biggest cruise ships, adding that his group plans to develop more high-end resorts in the province, raising its total investment to two billion USD from the current 300 million USD.

Meanwhile, Giles T. Cooper from the Duane Morris Vietnam LLC Company underlined the favourable investment climate of Vietnam, including Thua Thien – Hue, in comparison with other regional nations. 

Thian Tai Chew from the Singapore Business Federation (SBF) spoke highly of the conference, which attracted the participation of 150 local businesses.

SBF will arrange for a business delegation to make a field trip to Thua Thien – Hue in February, he said.

Australia approves in principle import of Vietnam’s dragon fruit

The Australian Ministry of Agriculture and Water Resources has given the green light to the import of Vietnam’s dragon fruit on the condition that the fruit meets bio-security requirements.

The Australian Embassy in Vietnam said on January 13 that the ministry has released its final review of bio-security import requirements for Vietnam’s fresh dragon fruits, which recommended the importation of fresh dragon fruit to Australia from all commercial production areas of Vietnam will be permitted, subject to a range of bio-security conditions.

The Australian government looks forward to continue working with Vietnam in the next steps to make importation of Vietnamese fresh dragon fruits to Australia possible, said Australian Ambassador to Vietnam Craig Chittick, who expressed his delight to this significant development.

Before the trade can commence, the two governments need to undertake a few more steps, including the establishment of the standard operating procedures for the vapour heat treatment facilities and the finalisation of the import requirements for fresh dragon fruits.

Australia began its work on market access for Vietnamese dragon fruits to Australia in April 2016. The Australian Ministry of Agriculture and Water Resources sent officials to Vietnam in June that year to inspect production and packaging process for the fruit. The collection of public feedback for the draft report for the bio-security import requirements review for the fruit completed in mid-November 2016. 

According to the Australian Embassy in Vietnam, Australia is also in the process of considering access for other Vietnamese fruits. The first consignments of Vietnamese lychees were exported to Australia in May 2015 while the first shipment of Vietnamese mangoes arrived in Australia in September 2016.

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