Consumer lending by end May rose 29.7 per cent against the end of 2016, the National Financial Supervisory Commission (NFSC) has said.

Of the total consumer loans, home renovation loans and home purchase loans accounted for 52.8 per cent, compared with 49 per cent in the end of 2016.

As per the NFSC’s report, credit growth of the entire banking system was positive, reaching 6.8 per cent in May, compared to 5.7 per cent in the same period in 2016. In particular, the lending terms have changed towards fewer medium-term and long-term loans. The proportion of short-term loans was estimated at 45.4 per cent, against 44.9 per cent in late 2016. Meanwhile, the proportion of medium- and long-term loans fell to 54.6 per cent, against 55.1 per cent.

Lending in Vietnamese đồng accounted for nearly 92 per cent, while lending in foreign currencies fell slightly to 8.2 per cent of the total lending from 8.4 per cent in late 2016.

At the end of the first quarter of 2017, the banking sector continued to be the economy’s main source of capital supply, accounting for nearly 60 per cent of the total capital supplied via the financial market.

The NFSC reported that as of now, liquidity troubles have declined. The ratio of loan to deposit (LDR) of the entire banking system was 87 per cent as of May, slightly lower than earlier. Inter-bank interest rates have also fallen to 4-4.2 per cent per year from the previous 5 per cent. The State Bank of Việt Nam withdrew VNĐ28 trillion (US$1.22 billion) in May.

According to the NFSC, the positive liquidity status is because of a rapid rise in State Treasury deposits as budget disbursement remains slow. As of late April, State Treasury deposits reached VNĐ122 trillion, up 28.4 per cent against the beginning of the year. 

SIMA ASEAN Thailand 2017 to promote agriculture industry
     
SIMA ASEAN Thailand 2017 has organised many local and international event preludes, gathering farmers and trade professionals to discuss the challenges and opportunities in agriculture.

The trade show will present great opportunities for the agriculture sector to enter the ‘Thailand 4.0’ era.

Scheduled to take place from September 7 to September 9, 2017, at Halls 5-6, IMPACT Exhibition and Convention Centre and IMPACT Lakeside Muang Thong Thani, SIMA ASEAN Thailand 2017 is the most established international trade show for agricultural and food-processing suppliers in ASEAN.

Key industry players gathered on May 25, 2017 at a recent forum in Union of Myanmar Federation of Chambers of Commerce and Industry to discuss how to boost rice export quality from Myanmar.

Speaking at the forum, entitled ’Advanced farming technology for sustainable development in ASEAN’, U Aung Myint, member of Myanmar Rice Federation, said “The demand by consumers for better quality rice has increased and Myanmar is trying to become a major rice exporter. This has led to much pressure on producers and processors to produce better quality rice.”

Sarit Yongsiri, Thai Rice Mills Association, said “There are three main requirements to produce good quality milled rice — good quality raw material: The starting quality of the paddy should be good, with the right moisture at around 14 per cent; state of the art equipment: The rice mill should be clean and well maintained; and operation skills: The mill should be operated by skilled operators. If any of these requirements are not met, milling will result in poor quality rice.”

Ajjima Roysri, Project Manager, IMPACT, said “SIMA ASEAN 2017 is ready to host 5,000 farmers across Thailand to experience the Outdoor Demonstration Area, which includes three main crops — cassava, rice and sugarcane. This gives the visitors the opportunity to see the leading brands live in action, and feel the agriculture machinery on real terrain.”

The SIMA ASEAN 2017 has received tremendous support from leading industry associations, cementing its position as one of the most effective business platform for the industry. Visitors can experience the latest agricultural innovation and technology from local and international sources. 

Sustainability Reporting Standard launched
     
The HCM Stock Exchange on Tuesday introduced the GRI Sustainability Reporting Standards and encouraged companies to use this reporting framework to strengthen their credibility, as well as contribute to promoting the green capital market.

The launch of the Vietnamese version of this sustainability reporting framework was held by the HCM Stock Exchange, the Global Reporting Initiative (GRI) organisation and Viet Nam Chamber of Commerce and Industry (VCCI).

Launched on October 19 last year by GRI, this is the first global standard for sustainability reporting which provides non-financial information disclosure and provides greater transparency about companies’ impact on the economy, environment and society.

About 92 per cent of the world’s largest 250 corporations report on their sustainability performance.

Nguyen The Tuan, deputy director of the HCM Stock Exchange’s Research and Development, said the new sustainability reporting scheme is important to enhance capital investment, being an effective tool to measure corporate strategy and contribution to sustainable development.

“Using this reporting, enterprises will promote their credibility and trust to investors and the community, develop their brand and contribute to the growth of the green capital market,” Tuan said.

He said though reporting sustainable performance is widely used among companies in the world, this framework is still relatively new to the Vietnamese business community.

Circular No 155/TT-BTC, issued on October 6, 2015, is considered the first legal document requiring disclosure on sustainable development of listed companies, demonstrating Viet Nam’s commitment to participate in the global value chain.

Asthildur Hjaltadottir, GRI’s service director, said the reporting tool will allow Vietnamese enterprises to familiarise themselves with sustainability reporting, which she said was currently incoherent. The new reporting framework also meets investors’ demand for an integrated and widely accepted standards, according to the director.

The Vietnamese version of the GRI Sustainability Reporting Standards is available on the GRI’s website. A version for small- and medium-sized enterprises will be introduced by the end of this year.

In an effort to promote a green capital market, the HCM Stock Exchange will debut the VN Sustainability Index (VNSI) this July to evaluate the sustainability performance of companies listed on the Viet Nam’s stock market.

Businesses with the highest scores in environmental, social and governance-related performance will be listed on VNSI. 

3 international exhibitions open in HCM City
     
Three international exhibitions -- Paper Vietnam; Rubber and Tyre Vietnam; and Coatings Expo Vietnam -- opened in HCM City on June 13.

The three-day expos have attracted 220 companies from 16 countries and territories, including China, the US, South Korea, Japan, Malaysia, Thailand, Germany, Australia, and India.

They are showcasing a wide range of machinery, equipment and products used in the paper and pulp, rubber and tyre, and coating, dyeing, and inking industries.

There will be several seminars, a business matching programme to help exhibitors and visitors find co-operation opportunities, and more.

Speaking at the opening ceremony, Nguyen Quang Huy, deputy head of the Ministry of Industry and Trade in the south, said the expos offer Vietnamese businesses a good opportunity to network, promote trade, acquire technologies and co-operate with leading international companies.

Nguyen Thi Lac Huyen, chairwoman of the Viet Nam Paint and Printing Ink Association, said the industry is still young in Viet Nam, and thus enterprises need an opportunity to promote their products.

The Coatings Expo Vietnam is an ideal opportunity for them to learn about the latest trends and market demands and enhance co-operation with local and foreign counterparts, she said.

Organised by the Minh Vi Exhibition and Advertisement Services Co., Ltd, CNCIC China and CNCIC India, the exhibitions, being held at the Saigon Exhibition and Convention Centre, are expected to welcome 6,000 trade visitors. 

Sterling drop will barely affect exports to UK: officials
     
The weakening of the UK sterling will not have much impact on Vietnamese exports since it is expected to be short-lived, an official of the Ministry of Industry and Trade said yesterday in response to public concerns.

Tran Thanh Hai, deputy director of the ministry’s Import-Export Department, said the UK was a large Vietnamese trading partner in Europe, but exports to the country only account for 3 per cent of the country’s export revenue.

"The sterling’s depreciation is temporary and once the UK and European Union complete Brexit negotiations, investors will feel secure," Hai said.

However, the ministry’s officials also warned that firms with large orders from the UK that depend on that market heavily would be hit hard. This suggests that exporters not focus too much on an individual market, and should diversify their consumption markets to minimise unexpected damages.

Dang Hoang Hai, director of the ministry’s European Market Department, said Vietnamese shipments currently go through customs at the Netherlands, Germany and Belgium, from where they are able to access the UK market.

After the UK leaves the EU, Vietnamese exporters could face more barriers in accessing the UK market this way. They would have to go through some procedures twice, like customs clearance, food safety and hygiene inspection, as well as other technical barriers, which would be costly and time-consuming for them.

It would be much more difficult for the Vietnamese exports to reach British customers directly once technical barriers with the EU are in place, Hoang Hai said. Therefore, the ministry urged exporters to study other ways to ship goods.

According to the ministry’s statistics, the UK imports 700 billion pounds worth of goods, but Vietnamese exports account for just five billion pounds, or 0.5 per cent of the import value. 

Although Viet Nam’s export value to the market is not high, most of the exports are its major commodities such as seafood, farm produce, textile and garment, furniture and wood products. The UK, in fact, is one of the few single markets seeing a positive growth rate of shrimp imports from Viet Nam; regional markets like the EU and ASEAN have seen a decrease.

Australia – potential market for Vietnam goods

Australia is a choosy but promising market with large consumption capacity, Vice President of Australia-Vietnam Business Council Cann Lee has said.

He noted that penetrating this market is tough, but maintaining a foothold is even more difficult.

Speaking at a recent Australia and Vietnam investment and trade expo in Hanoi, Lee said a delegation of 70 Australian businesses operating in real estate, finance, environment, mineral and hi-tech agriculture have arrived in Vietnam to seek cooperation opportunities with Vietnamese partners.

Vietnam is the second most attractive market in Southeast Asia to Australian firms, only after Indonesia, due to Vietnam’s political stability and dynamic market, he noted.

Notably, the Vietnamese Government has devised incentives to support enterprises seeking business opportunities in the country. 

Bilateral trade has increased in recent years after the two countries joined a free trade agreement signed between Australia, New Zealand and ASEAN in 2009.

In 2016 alone, two-way trade reached 5.26 billion USD, a year-on-year rise of 6.5 percent, according to Vietnam Customs.

Vietnam exported 2.87 billion USD worth of goods to Australia while importing 2.39 billion USD from the market.

As of May 2017, Australia ranked 19th among the total 119 countries and territories investing in Vietnam with 404 projects worth nearly 1.9 billion USD.

Andrew Martin, Managing Director at Moelis said the company recognised the huge investment opportunities in real estate and finance in Vietnam due to the sectors’ stable growth.

Despite huge import demand, many Vietnamese staples have struggled to conquer the Australian market, Lee said, with quality of goods the biggest difficulty for Vietnamese firms.

Director of Hoang Lan Co. Ltd. Nguyen Thi Nga said businesses should follow international standards to meet the requirements of consumers and improve competitiveness and improve the quality management system of factories.

She suggested Vietnamese firms invite experts to inspect the quality of products and bring skilled Australian workers to Vietnam to increase the quality of products and popularise Vietnamese goods in the market.

Australian business representatives advised Vietnam to seek partners in Australia to better understand the host’s law and market to enter the market more easily.

Cement exports on the rise

Cement exports resumed upward trend during the first five months of this year after witnessing declines last year, according to the General Department of Vietnam Customs.

Vietnam businesses shipped more than 8.2 million tons of cement and clinker in the first five months of 2017 and received US$288 million, grew 16.6% in volume and 10.9% in value.

Bangladesh and the Philippines were the two biggest importers of Vietnam products, of which Bangladesh made up 3.5 million tons, valuing at US$103 million, and the Philippines accounted for 2.2 million tons, worth US$96.2 million. 

Other import markets included Peru (241,000 tons worth US$11.2 million), Taiwan (349,000 tons worth US$10.3 million), Sri Lanka (332,000 tons worth US$9.6 million), Malaysia, Laos, Cambodia, China, Mozambique and Australia.

Last year, Vietnam exported 14.7 million tons of cement and clinker valuing at US$561 million, which marked 7.1% decline in volume and 16% decline in value.

HNX nets 2.4 trillion VND in auctions

Eighteen auctions held on the Hanoi Stock Exchange (HNX) in the first five months of the year raised more than 2.4 trillion VND (105.8 million USD), up 24 percent from the same time last year.

Some 175.6 million stocks were sold, or 97 percent of shares on offer. Shares in 15 auctions sold out.

Investors registered to buy 425 million shares, 2.35 times higher than the amount up for sale.

Four initial public offerings by 185 company limited, Haprosimex company limited, Bac Ninh Water Supply and Sewerage company limited and Vietnam General of Agriculture Material Corporation Limited earned upwards of 83 billion VND (36.6 million USD) for the State.

Notably, Viglacera’s auction in May attracted 1,026 investors, a record high in the past five years. The enterprise raked in some 1.9 trillion VND (83.8 million USD) from selling 120 million shares, 91.65 percent of which were purchased by foreign investors.
 
Sustainability reporting standards hoped to “green” stock market

The Sustainability Reporting Standards of the Global Reporting Initiative (GRI) debuted in Vietnam on June 13, aiming to help make the stock market “green”.

The event to introduce the GRI standards was held by the HCM Stock Exchange (HOSE), the GRI and the Vietnam Chamber of Commerce and Industry.

Nguyen The Tuan, deputy head of HOSE’s research and development division, said sustainability reporting is an effective tool to measure, recognise and publicise enterprises’ sustainable development targets. Through the reports, companies can enhance their prestige and gain investors’ trust, helping to “green” the capital market.

Despite global popularity, sustainability reporting is relatively new among Vietnamese firms, he added.

Director of Services at GRI Asthildur Hjaltadottir said the GRI Sustainability Reporting Standards, the latest version and also the highest international standards of sustainability reporting issued by the Global Sustainability Standards Board, have been introduced in many countries.

The use of these standards will help address the fact that Vietnamese businesses are still producing sustainability reports in an inconsistent manner, she said.

She added the GRI translated the standards into Vietnamese and is popularising them to local enteprises.

The Vietnamese version of the GRI Sustainability Reporting Standards is available on the GRI’s website. A version for small- and medium-sized enterprises will be introduced by the end of this year.

In an effort to promote a green capital market, HOSE will debut the VN Sustainability Index (VNSI) this July to evaluate the sustainability performance of companies listed on the Vietnam’s stock market.

Businesses with the highest scores in environmental, social and governance-related performance will be listed on VNSI.

Ninh Thuan seeks investments in renewable energy, marine economy

In 2017, the south central coastal province of Ninh Thuan is focusing on luring capable and strategic businesses and investors in the two key sectors of renewable energy and marine economy.

Incentives in terms of finance, land, taxes and infrastructure have been offered to investors, particularly those operating in wind and solar power, sea-based economy, tourism and agriculture.

The province has instructed sectors to promptly revise relevant legal documents while applying information and communication technology in management and offer online services to create favourable conditions for investors.

Dialogues have frequently been conducted to address difficulties facing investors during the implementation of their projects.

Director of the provincial Department of Planning and Investment Pham Dong said the Ninh Thuan Economic Development Office has been put into operation to provide “one-stop” administrative services for investors. The move has helped shorten time for granting business registration licences.

Since 2016, the province has granted investment plan decisions to 18 projects, worth a total of 3.36 trillion VND (147.8 million USD), and approved investment venues for 20 projects, worth 15.1 trillion VND (663.7 million USD).

A number of big projects include Phuoc Huu – Duyen Hai Wind Power Plant worth 1.26 trillion VND (55.4 million USD); white-legged shrimp production centre worth 70 billion VND (3.08 million USD); Dam Nai Wind Power Plant worth 1.52 trillion VND (67 million USD); and a beeves and cows farm worth 250 billion VND (11 million USD).

Currently, the province is home to 292 projects, including 30 foreign direct investment projects, with a combined registered capital of 59.85 trillion VND (2.63 billion USD).

Vietnam studies int'l experience in building facilitating State

The Ministry of Planning and Investment and the World Bank Group co-organized an international workshop on “Economic Governance for a Facilitating State” in Hanoi on June 13.

The event aims to share international experience on re-defining the role of the State in economic management and improving institutions for a State facilitating sustainable development and more prosperity.

Deputy Minister of Planning and Investment Nguyen The Phuong said the Vietnamese Government always seeks to reform and concretize its policies to develop the country.

Building a capable and accountable State is both a task and a target in order to help the country overcome challenges, but it is not a simple task, he said.

Sharing the report on Vietnam’s roadmap to 2035, former Minister of Planning and Investment Bui Quang Vinh said Vietnam is lagging behind in terms of income and economic scale.

The country is listed among top 10 countries having the lowest State accountability. Its ranking in term of state governance is also low compared to the level of income. 

Economically, after 15 years, the total gross domestic product (GDP) of Vietnam increased by 160 billion USD while that of Thailand and Indonesia were 270 billion USD and 700 billion USD, respectively.

Vinh suggested enhancing the State capacity and ensuring the market principle in decisions issued by the State, at the same time improving assurance of property rights, encouraging competition, limiting the State’s direct interference and improving the effectiveness of State management of economic activities. 

He recommended expanding the participation of all economic sectors in the provision of public services. The State should play the role of a supporter and provider in this field.

During the conference, participants also discussed how to improve the governance efficiency of the government, reform State-owned businesses, facilitate the development of the private sector, among other issues.
 
HCM City aims for 10-pct growth of cooperative economy

The cooperative economic sector in Ho Chi Minh City aims to achieve an annual growth rate of 10 percent from 2017 – 2020, said the municipal Cooperative Alliance’s Chairwoman Le Hoang Yen on June 13.

The HCMC Cooperative Alliance also targets to raise its contribution to the city’s GDP to 1.2 percent and attract more 50,000 people working in the cooperative sector during the period, Yen said at a ceremony to celebrate the alliance’s 20th anniversary.

Speaking at the ceremony, Vice Chairman of the municipal People’s Committee Le Thanh Liem lauded the great contribution of the cooperative sector in general and the HCMC Cooperative Alliance in particular to the city’s economy.

Liem urged the alliance to take part in the city’s seven designated “breakthrough” programmes which focus on human resource development, administrative reform, growth quality, competitiveness improvement, traffic congestion and flooding control, and cityscape rehabilitation.

He also hoped the alliance will educate its members on the country’s laws and policies on development of the cooperative economy and bolster the growth of the sector as well as the local economy.

The alliance now operates the country’s biggest fund in support of cooperative members. It has provided cooperative members with soft loans with interest rates equivalent to just 80-90 percent of those offered by commercial banks over the past 15 years.

Its fund, called CCM, has lent more than 7.1 trillion VND to over 541,000 members by the end of 2016.

The alliance plans to establish 1,500 more cooperative groups, 175 new cooperatives and 10 cooperative unions from now to 2020, and provide about 1.7 trillion VND in credit to members each year.

Binh Phuoc targets sustainable pepper supply chain

Pepper growers in the southern province of Binh Phuoc have improved their income under a partnership programme with Nedspice Vietnam. 

Loc Ninh district is a well-known pepper cultivation area with 825 farming households registering for members of Nedspice Club, in which, foreign partners closely oversee seedling, growing and harvest up to VietGAP standards. 

In collaboration with the provincial Agriculture and Fishery Encouragement Centre, Nedspice instructed farmers how to adapt their farming practices to 10 Rainforest Alliance certification requirements so that the produce could be qualified for export. 

Recently, the provincial authorities gave the nod to a project on developing a sustainable pepper supply chain by the provincial Department of Agriculture and Rural Development, the Agriculture and Fishery Encouragement Centre and Nedspice. 

Accordingly, more farming households are expected to join the supply chain during the 2017-2018 crop. The province will provide drip irrigation systems for farmers who join new-style cooperatives or sustainable clean pepper clubs. 

Clean pepper growers’ clubs will be expanded to the districts of Bu Dop, Hon Quan, Binh Long, Bu Gia Map, Phu Rieng and Chon Thanh, towards ensuring that each district has a club in the near future. 

Nedspice Vietnam General Director Willem Scato Valt Meijer pledged to ensure consumption of more than 10,000 tonnes of peppercorn in Vietnam. 

During the 2017-2018 crop, Nedspice targets linking with 2,000 farming households in Binh Phuoc with contracts to buy more than 3,000 tonnes of peppercorn, or nearly 30 percent of its total purchase each year. 

Binh Phuoc is home to more than 400,000 ha of pepper with an average output of 25,000 tonnes. 

Japan company seeks opportunity in infrastructure in Can Tho

A delegation of the Eight-Japan Engineering Consultants Inc. (EJECT) had a working session with authorities of the Mekong Delta city of Can Tho on June 13 to look at possibilities to join local infrastructure projects. 

Vice Chairwoman of Can Tho People’s Committee Vo Thi Hong Anh said the city needs consultation from Japan in implementing several urgent infrastructure projects funded by the World Bank. 

The projects include building dykes along Can Tho river and two bridges. 

EJECT has more than 50 years of experience in providing consultation on infrastructure development, with a strength in urban planning and cityscape. 

According to the company’s representatives, EJECT has participated in a planning contest for Han River in the central city of Da Nang. 

The company is carrying out a project on garbage collection and sorting in Ho Chi Minh City.

EU forest pact gives Vietnam timber firms a leg up

Once the EU-Vietnam Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA-FLEGT) comes into force, there will be opportunities for Vietnam to export more wooden products to Europe and other markets, delegates told a seminar in HCM City on June 13.

A VPA is a voluntary trade agreement between the EU and countries making wooden products to promote trade in legal timber and ensure only legally harvested timber is imported into the EU from these countries.

Vietnam and EU concluded VPA negotiations last month.

According to delegates, the forest pact would increase the competitiveness of Vietnamese timber products compared to those from countries that do not have much control over the forestry sector.

Speaking at a seminar on promoting furniture and handicraft exports to European market, Jana Herceg, deputy head of the trade and economic section of the Delegation of the European Union to Vietnam, said Vietnam is the second country in ASEAN after Indonesia to conclude this agreement.

So when the VPA-FLEGT agreement takes effect, it would further boost the export of furniture products, she said.

European consumers want to know about labour conditions and corporate social responsibility standards, she said.

If Vietnamese companies understand consumers demand and meet these conditions, they have the opportunity to boost exports to Europe, she said.

To penetrate the market, good quality is the first thing firms need to have, she said.

“Once you have the products you have to make sure that people know about your products, you need to have good marketing and good branding.”

Bui Thi Viet Anh of the Institute of Policy and Strategy for Agriculture and Rural Development said VPA-FLEGT certificates would help increase opportunities to export to other important markets.

But the process is relatively complicated, and increases costs and administrative procedures in Vietnam, she said.

Enterprises also face trade barriers and intense competition from other exporters to the market, which require them to improve quality, access to information and competitiveness.

They need to ensure legal timber sources by increasing import of raw materials from low-risk countries, connecting with importers in developed countries, and investing in timber growing in Vietnam, she said.

Nguyen Chanh Phuong, deputy chairman of the Handicrafts and Wood Industry Association of HCM City, said besides branding, product design and price are two important factors in the competitiveness of the wooden sector.

European consumers’ habits are changing, and exporters need to catch up on these trends, he said.

Johannes Schwegler of the Swiss Import Promotion Programme said there is an emerging trend of using laminated flooring and bamboo products as substitutes for tropical timber because of their environmental-friendliness and technical properties.

Solid wood-based products, which are the strength of Vietnamese firms, still have opportunities for growth, but Vietnamese firms should keep abreast of market trends, he said.

Bui Thi Thanh An, deputy director general of Vietnam Trade Promotion Agency, said exports of wood and wooden products were worth nearly 7 billion USD last year.

The EU is currently the fourth largest importer of Vietnamese wood and wood products. It is also one of Vietnam’s timber suppliers.

Prospects for exporting furniture to the EU this year are good, she added.

Vinamilk among top 50 listed businesses in Vietnam

Nhip Cau Dau Tu (The Business Review) magazine has named Vietnam Dairy Products (Vinamilk) among the top 50 listed Vietnamese companies with best performance in 2016.

This is the sixth consecutive year Vinamilk has been listed by the magazine.

The ranking was based on various criteria, including market capitalisation of 1.5 trillion VND (66.1 million USD) as of April 2017, and revenues for 2014, 2015 and 2016.

From 2014 to 2016, Vinamilk’s sales grew 14.8 percent, while its return on equity and earnings per share increased 34.5 and 82 percent respectively.

In May 2017, the Kantar Worldpanel Brand Footprint Ranking listed the company as the most popular fast-moving consumer goods brand in Vietnam. 

Vinamilk is also included in the Forbes Global 2000 list of the world’s biggest public companies.
 
Vietjet sells 5,000 promotional tickets at Hong Kong int’l travel expo

Vietjet will give away 5,000 promotional tickets priced from zero US dollars at the Hong Kong International Expo (ITE) 2017, slated for June 15-18 at Hong Kong Convention and Exhibition Centre.

The discounted airfares, which will be available within the golden hours from noon to 2pm (local time) at www.vietjetair.com, can be applied for HCM City-Hong Kong route with flight time being from August 1 to December 31.

During the forthcoming event, ITE exhibitors will enjoy a lively Flashmob dance, photo opportunities with the popular Vietjet crew, Facebook livestream and mobile phone games with #Vietjet hashtag for special prizes for the winners. In addition, visitors can also experience the “Fast & Fun” game.

ITE, the biggest travel exhibition in Hong Kong, attracts renowned travel agencies and global airline participants. It is a chance for Vietjet to introduce and integrate Vietnam’s sceneries and people to the world, the airline said in its statement.

Top Vietnamese firms attend Asia’s largest FB trade fair

As many as 50 Vietnamese food and beverage (F&B) enterprises, double the number last year, displayed and promoted their products at the THAIFEX-World of Food Asia 2017 held in Bangkok earlier this month.

Leading F&B companies in Vietnam, including Vietnam Dairy Products Joint-Stock Company (Vinamilk), Dan On Foods, Rita Food & Drinks Co Ltd and Minh Phong Green & Agricultural Products JSC, have taken part in the trade show for the last five years.

Many new players, such as Seafarm Liability Limited Company, Lotus Rice Co Ltd and Vinh Hoan Corporation, attended this year’s trade fair.

This year, Vietnamese exhibitors saw a 55 percent increase in total display area, with the introduction of a new seafood pavilion.

The event provided the exhibitors with an opportunity to consolidate their positions in the market and introduce their latest products, seek partners, and learn about customer demand.

This year, Vietnamese manufacturers brought both cultivated and processed “clean” products that are environmentally friendly and have non-toxic standards. They included organic rice, honey, bird’s nest and cereals, among others.

Other Vietnamese agricultural and food products were promoted as “safe, nutritious and with high quality”, including fruits and vegetables, fresh meat, poultry, processed foods, and milk and dairy products, among others.

The event’s organisers said that Vietnam, as a rapidly growing ASEAN economy, had a great deal to offer the global businesses attending the trade show.

Vo Thanh Vin, international business manager for Vinamilk, said: “This trade event helps establish new business networks. We’re excited to be able to leverage this platform to pursue opportunities for our business to grow as well as promote Vietnamese products to the world.”

“This year, besides a focus on our key products at the Vietnam pavilion, we also introduced our organic milk to consumers,” he added.

“We were very impressed by the buyers’ programme. It gave us the opportunity to engage with major retailers from around the region, and it was a fruitful session, meeting buyers from both supermarkets and hypermarkets across Thailand,” Vin told Viet Nam News.

Truong Tuyet Hoa, sales director of Vinh Hoan Corporation, said: “This year was the first time we joined Thaifex. We see potential to join the show next year.”

“Thaifex is one of the largest food and beverage trade fairs in the world, and it offers us an opportunity to display our catfish to the world market, especially the Asia market. We closed trade orders worth a total of 200,000 USD during the trade show,” Hoa told Viet Nam News.

“Vinh Hoan uses an integrated production chain, from seed to commercial fish farming to processing to export,” she said. “We have been exporting catfish to the US since 1999.”

“To promote Vietnamese catfish to the world market, our standards must ensure food safety and have a traceability system, without causing an adverse impact on the environment,” she added.

Thaifex was co-organised by Koelnmesse, a leading organiser of food fairs and events for food and beverage processing, the Thai Department of International Trade Promotion, and the Thai Chamber of Commerce.

The five-day mega show attracted around 45,000 industry professionals, 2,000 exhibitors and representatives from over 40 countries.

The event, Asia’s largest food and beverage trade show, saw a total of 55,111 visitors from 130 countries, a 30 percent increase compared to the 2016 show.

Sterling drop will barely affect exports to UK: officials

The weakening of the UK sterling will not have much impact on Vietnamese exports since it is expected to be short-lived, an official of the Ministry of Industry and Trade has said in response to public concerns.

Tran Thanh Hai, deputy director of the ministry’s Import-Export Department, said the UK was a large Vietnamese trading partner in Europe, but exports to the country only account for 3 percent of the country’s export revenue.

"The sterling’s depreciation is temporary and once the UK and European Union complete Brexit negotiations, investors will feel secure," Hai said.

However, the ministry’s officials also warned that firms with large orders from the UK that depend on that market heavily would be hit hard. This suggests that exporters not focus too much on an individual market, and should diversify their consumption markets to minimise unexpected damages.

Dang Hoang Hai, Director of the ministry’s European Market Department, said Vietnamese shipments currently go through customs at the Netherlands, Germany and Belgium, from where they are able to access the UK market.

After the UK leaves the EU, Vietnamese exporters could face more barriers in accessing the UK market this way. They would have to go through some procedures twice, like customs clearance, food safety and hygiene inspection, as well as other technical barriers, which would be costly and time-consuming for them.

It would be much more difficult for the Vietnamese exports to reach British customers directly once technical barriers with the EU are in place, Dang Hoang Hai said. Therefore, the ministry urged exporters to study other ways to ship goods.

According to the ministry’s statistics, the UK imports 700 billion pounds worth of goods, but Vietnamese exports account for just five billion pounds, or 0.5 percent of the import value. 

Although Vietnam’s export value to the market is not high, most of the exports are its major commodities such as seafood, farm produce, textile and garment, furniture and wood products. The UK, in fact, is one of the few single markets seeing a positive growth rate of shrimp imports from Vietnam; regional markets like the EU and ASEAN have seen a decrease.-

Viet Capital Bank’s cheap loans for small firms
     
Viet Capital Bank has earmarked VND600 billion (US$26.38 million) for lending to small and medium-sized enterprises based in HCM City and the north at an interest rate of 7 per cent.

Under a programme called ‘Connecting Viet Capital Bank with SMEs,’ new SME customers and those who have repaid their old loans at least six months ago can borrow up to 80 per cent of the value of their mortgage.

There is no penalty for early loan repayment.

The programme will be implemented from now until December 31.

For more information, customers can contact the bank’s hotline at 1800 555 599 or its branches around the country. 

VietnamPost introduces e-commerce site
     
The corporation of Viet Nam Post Office (VietnamPost) officially launched an e-commerce site selling Vietnamese speciality at https://badasa.com.vn on Tuesday.

The site sells 20,000 products from 5,000 providers of agro-forestry-aquatic products, herbal products, handicrafts and gifts.

Badasa operates on the principle of purchasing directly from manufacturing facilities and providing them directly to customers without intermediaries.

Pham Anh Tuan, the VietnamPost director-general, said that Badasa only coooperated with prestige partners having business licences and food safety certificates.

The prices of products and delivery will be made public when customers buy the products. Badasa buyers can pay through cash on delivery (COD).
     
Seminar discusses furniture exports to EU     

Once the EU-Viet Nam Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA-FLEGT) comes into force, there will be opportunities for Viet Nam to export more wooden products to Europe and other markets, delegates told a seminar in HCM City on Tuesday.

A VPA is a voluntary trade agreement between the EU and countries making wooden products to promote trade in legal timber and ensure only legally harvested timber is imported into the EU from these countries.

Viet Nam and EU concluded VPA negotiations last month.

According to delegates, the forest pact would increase the competitiveness of Vietnamese timber products compared to those from countries that do not have much control over the forestry sector.

Speaking at a seminar on promoting furniture and handicraft exports to European market, Jana Herceg, deputy head of the trade and economic section of the Delegation of the European Union to Vietnam, said Viet Nam is the second country in ASEAN after Indonesia to conclude this agreement.

So when the VPA-FLEGT agreement takes effect, it would further boost the export of furniture products, she said.

European consumers want to know about labour conditions and corporate social responsibility standards, she said.

If Vietnamese companies understand consumers demand and meet these conditions, they have the opportunity to boost exports to Europe, she said.

To penetrate the market, good quality is the first thing firms need to have, she said.

“Once you have the products you have to make sure that people know about your products, you need to have good marketing and good branding.”

Bui Thi Viet Anh of the Institute of Policy and Strategy for Agriculture and Rural Development said VPA-FLEGT certificates would help increase opportunities to export to other important markets.

But the process is relatively complicated, and increases costs and administrative procedures in Viet Nam, she said.

Enterprises also face trade barriers and intense competition from other exporters to the market, which require them to improve quality, access to information and competitiveness.

They need to ensure legal timber sources by increasing import of raw materials from low-risk countries, connecting with importers in developed countries, and investing in timber growing in Viet Nam, she said.

Nguyen Chanh Phuong, deputy chairman of the Handicrafts and Wood Industry Association of HCM City, said besides branding, product design and price are two important factors in the competitiveness of the wooden sector.

European consumers’ habits are changing, and exporters need to catch up on these trends, he said.

Johannes Schwegler of the Swiss Import Promotion Programme said there is an emerging trend of using laminated flooring and bamboo products as substitutes for tropical timber because of their environmental-friendliness and technical properties.

Solid wood-based products, which are the strength of Vietnamese firms, still have opportunities for growth, but Vietnamese firms should keep abreast of market trends, he said.
Bui Thi Thanh An, deputy director general of Viet Nam Trade Promotion Agency, said exports of wood and wooden products were worth nearly US$7 billion last year.

The EU is currently the fourth largest importer of Vietnamese wood and wood products. It is also one of Viet Nam’s timber suppliers.

Prospects for exporting furniture to the EU this year are good, she added.