Survey helps HCM City plan policy

The 2017 Economic Survey in HCM City has provided basic data about the number of enterprises, workers, the economic efficiency of companies and administrative units and proportion of information technology application, delegates heard at last Friday’s meeting to review the survey.

“Such data will be a foundation for city authorities to build action plans and set up policies for socio-economic development in an effort to encourage modern science and technology application in all economic industries and administrative units,” Lê Thanh Liêm, vice chairman of the municipal People’s Committee and head of the Steering Committee for 2017 Economic Survey said.

According to the results of the survey, HCM City now has 633,637 economic, administrative and religious units, an increase of 27 per cent in comparison with 2011.

Of this amount, there are 173,000 enterprises, an increase of 62 per cent in comparison with 2011 and non-State enterprises make up 97.36 per cent, an increase of 65.35 per cent.

Total capital at these non-State enterprises has increased 2.11 times to VNĐ3.2 quadrillion (US$142 billion) and this is also the group that has created the most new jobs for labourers.

However, the survey also shows that despite the fact that the number of enterprises has rapidly grown, most of them are small or tiny.

Only 38 per cent of enterprises, around 64,600, have profits while nearly 97,000 others – 56.5 per cent – suffer losses.

Total number of workers is 4.1 million, an increase of 19 per cent in comparison with 2011.

“The survey’s results have reflected a real picture about the socio-economic activities of the city and it is necessary to promote industrial production and business in order to ensure development and social welfare,” Liêm added.

To complete the survey, the vice chairman instructed the departments of Planning and Investment, Taxation and Statistics to co-operate in reviewing 300,000 registered enterprises and 173,000 active enterprises.

For enterprises, industries and districts which did not co-operate in the survey, Liêm requested the Statistics Department mete out punishment based on the Statistics Law.

This is one of three national statistics programmes, regulated by the Prime Minister. It is taken every five years and this is the fifth survey in Việt Nam. 

Quang Binh exploits more than 13,000 tons of titanium ores

The Department of Natural Resources and Environment of Quang Binh province yesterday said that the province exploited more than 13,000 tons of refined titanium ores.

A report from Management Board of Titanium Mining Project showed that the volume of titanium ore mining reached around 32,500 tons of raw ore, equivalent to 13,000 tons of refined titanium ores last year. 

Accordingly, the functional agencies of Quang Binh province suggested titanium mining projects in Le Thuy district needed to adjust an altitude of scrap-yard, returning the premises and replanting trees in the area after the exploitation.

This year, the enterprises are expected to continue exploiting around 13,000 tons of titanium ores to sever export. 

HCM City agricultural production area down, value up every year

Agricultural production area in HCMC reduces every year but value continues increasing reaching VND450 million (US$19,815) a hectare in 2017, a year on year increase of 9.8 percent, reported the city Department of Agriculture and Rural Development.

HCMC Gross Regional Domestic Product (GRDP) last year went up 6.3 percent. Export value hiked 6.3 percent, fields posted the highest value increase include cultivation with 5.8 percent, agricultural services 17.8 percent and seafood exploitation 8.7 percent.
In 2017, agricultural structure continued moving toward urban agriculture. Low yield rice and sugarcane farming areas were transferred into higher value crops such as vegetables, flower, ornamental plants and breeding grass to improve productivity and income for farmers.
Besides developing toward urban agriculture, hi-tech application, eco agriculture, the industry has focused on science-technology transfer and bio technology application in production.
In addition, connectivity among state management agencies, scientists and businesses has been renewed toward linking up agriculture, industry and services.

Sofitel Legend Metropole Hanoi in Condé Nast Traveler Gold List 2018

The Sofitel Legend Metropole Hanoi has found a place on the list of the best hotels in the world for 2018 and been hailed as the No. 1 hotel in Hanoi by editors of the prestigious US travel publication, Condé Nast Traveler.

“This is simply amazing! Being able to keep ourselves remembered among prominent hotels in established destinations shows that the Metropole Hanoi is a trusted choice,” said Mr. William J. Haandrikman, General Manager of the Hanoi icon.

Spanning six continents and 54 countries, the annual Condé Nast Traveler Gold List 2018 recognizes hotels around the world that editors and contributors of the bestselling magazine visit time and time again and daydream about long after checking out.

“This year’s Gold List is a love letter to those hotels, resorts, and cruises that stay with us long after we have returned home,” wrote Editor-in-Chief of Condé Nast Traveler, Pilar Guzmán. “We are interested in the way a place, in all of its ineffable complexity, beauty, and sometimes darkness, tugs at us and calls us back, much like human relationships do.”

The 2018 Gold List Awards were announced in the January 2018 issue of Condé Nast Traveler and published on its official website.

In October, the Sofitel Legend Metropole Hanoi emerged from voting of over 300,000 Condé Nast Traveler readers as the 21st best hotel in Asia in its Readers’ Choice Awards (RCA).

The magazine hailed the hotel for its “spacious and richly appointed” rooms, as a “peaceful refuge”, and for service that goes “above and beyond”.

The magazine’s Gold Awards are more selective than the RCA. While eight hotels and resorts in Vietnam were recognized in the RCAs, only two hotels in Vietnam found a place on the Gold List.

HI-TEK launches tourism website system

A one-stop-shopping website on tourism in Vietnam has been officially launched by HI-TEK Inc. through travel.vn, hotel.vn, vietnamesevisa.com, and prebook.com.

Using Blockchain 4.0 technology, the system connects to more than 800,000 hotels and some 150,000 air flights worldwide at www.travel.vn and www.hotels.vn, allowing travelers to book hotel rooms in and air tickets to Vietnam online at the best price. Those who register as members of www.preBook.com will also receive a 75 per cent discount.

The US-based HI-TEK Inc. has also cooperated with Vietnamese embassies in the US and elsewhere to provide visa services for those coming to Vietnam, with a simple and convenient process available at www.vietnamesevisa.com.

HI-TEK will continue to build and complete its booking system for cruises, online ticket purchases for entertainment and culture, and car rentals, aiming to add more services to the system and promote Vietnamese tourism throughout the world.

In 2018, HI-TEK targets building a direct payment portal to reduce intermediate fees to save costs for tourists. It will also encourage visits to Vietnam by, especially, the more than 2 million Vietnamese living in the US, with lending support from the HI-TEK Travel Bank.

Vietnam ranked 17th among countries with the highest internet use in the world, with 53 per cent of its population using the internet every day, according to HI-TEK. Additionally, up to 90 per cent of visitors coming to Vietnam do their search for tourism information on the internet. This provides an advantage for tourism companies to develop smart tourism, based on the achievements of the fourth industrial revolution (Industry 4.0).

Vietnam welcomed a record of nearly 13 million foreign visitors in 2017, a year-on-year increase of 29.1 per cent, according to the Vietnam National Administration of Tourism. It also hosted 73 million domestic travelers, up 27.5 per cent against 2016. Total revenue from tourism was estimated at over VND510 trillion ($22.4 billion), with 58 per cent coming from foreign visitors.

Travelers normally make room and flight bookings through foreign online tourism agencies (OTAs) operating in Vietnam, including agoda.com, booking.com, TripAdvisor, and Airbnb. There are also local firms in the market, such as ivivu.com, gotadi.com, chudu24h.com, and vntrip.vn.

HI-TEK Inc. is a privately-held company with offices in San Diego, Ho Chi Minh City, and Vientiane, the capital of Laos. Since 1995, it has successfully designed and developed numerous innovative interactive e-commerce website portals to promote travel, tourism, and internet services worldwide.

VCCI announces winner of National Start-up Competition 2017

The Vietnam Chamber of Commerce and Industry (VCCI) announced the winner of the National Start-up Competition 2017 and kicked off the Start-up Festival 2018 on January 12.

Of six contestants, the H’Mong Yen Bai Chicken Farm Project of the Vietnam National University of Agriculture won first prize.

The project aims to maintain and preserve the H’Mong chicken breed in Vietnam.

Addressing the ceremony VCCI Chairman Dr. Vu Tien Loc said the first startup festival was launched five years ago.

“Four months later the final contest was held with the best projects,” he remembered. “Myself, my colleagues , the Vietnam Business Forum newspaper, and other partner organizations such as the Ministry of Foreign Affairs, the Ministry of Labor, Invalids and Social Affairs, and the Ho Chi Minh Communist Youth League lit the flame for students at universities and colleges throughout the country. VCCI, as the national startup support center, raised the first flame for startups in Vietnam.”

Dr. Loc also officially announced the Mai An Tiem award, an annual prize for startup projects and startup businesspeople in Vietnam.

Upon receiving the National Start-up Competition 2017 award, Mr. Nguyen Thanh Binh, representing the H’Mong Yen Bai Chicken Farm Project, said all members were very happy as the project has received attention from investors.

Mr. Trieu Van Duong, Chairman and General Director of PTI Educational Institution, will invest VND100 million ($4,413) in the project, or a 35 per cent stake.

Mr. Tran Manh Bao, Chairman and CEO of the Thai Binh Seed Corporation, is also willing to support 50 per cent of the required finance without receiving shares, in order to support facilities at the project.

Transport links to raise satellite sales

Thanks to the recent improvements in infrastructure, 2018 is forecast to see large numbers of land plots being sold on the outskirts of Ho Chi Minh City.

The trend is currently spreading to Dong Nai and Binh Duong, two of Ho Chi Minh City’s neighbouring provinces, and particularly to areas with a good connection to the city.

According to local experts, land prices in the Nhon Trach and Long Thanh districts of Dong Nai – where the city’s future airport will be located – have increased by 20-30 per cent since 2016.

In Bien Hoa, the capital of Dong Nai, the price of land has also increased remarkably, especially after Ho Chi Minh City authorities announced their plans in 2017 to expand the metro line. The transport line is currently under construction and will link Ho Chi Minh City to Bien Hoa.

The Swan Park project, located on Dai Phuoc Peninsula in Dong Nai – a 50-minute drive from Ho Chi Minh City, is now on the radar of many buyers, with planned road and bridge improvements linking the area to Ho Chi Minh City and being slated to shorten the drive to 25 minutes.

A salesman involved in the project told VIR that the investor launched sales of its first phase of the Garden Town, which will consist of 750 units of semi-detached houses, shophouses, and villas.

With prices ranging from $100,000 to $250,000 per unit, most of the shophouses and villas were quickly picked up by buyers.

According to Tran Thi Cam Tu, general director of Eximrs Land, the distributing agency for the Long Hung Urban Area located in Bien Hoa, more than 1,600 land plots of this project were sold to the market.

The project not only reported an increase in liquidation, but also in price. Prices increased from VND8 million ($355) per square metre at its start to VND14 million ($622) more recently.

In the province of Binh Duong, many recently-launched projects have reported good liquidation. Among them is Mega City, invested by Kim Oanh Real Estate JSC. More than 1,400 land plots and townhouses were successfully transferred in the fourth quarter of 2017.

Thuan Tien, a subsidiary of DRH Holdings, recently launched 150 land plots in a project named Lai Thieu Central Garden. All of them were sold in one day. The prices of the project increased by 10 to 15 per cent after only one week.

Other projects attracting investors and buyers are Eco Xuan, invested by Setia Lai Thieu, and Midori Park, invested by Becamex Tokyu.

In the province of Long An, 2017 was also a good year for land plots, villas, and townhouses.

Le Tien Vu, general director of the Cat Tuong Real Estate Company, the investor of the Cat Tuong Phu Sinh eco-city located in Long An, said that in 2017 alone, more than 5,000 products from this project were successfully sold to the market. Prices increased by 80 to 100 per cent compared to the initial sales phase of the project in 2016.

Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said that the plan to decentralise the population to neighbouring areas and satellite districts and provinces has been going on for years.

“The government’s strategy is to develop those neighbouring areas into regional urban areas. The neighbouring areas of Ho Chi Minh City like the Di An and Lai Thieu districts of Binh Duong or the Bien Hoa and Nhon Trach districts of Dong Nai will be key development areas in the future,” Chau said.

The proposed Ho Chi Minh City Metropolitan Area consists of Ho Chi Minh City itself and areas in the seven neighbouring provinces of Ba Ria-Vung Tau, Binh Duong, Binh Phuoc, Tay Ninh, Long An, Dong Nai, and Tien Giang, with a total land area of more than 30,000 hectares.

Footwear industry signals higher export target for this year

It is not difficult for the footwear industry to fulfil the target of US$20 billion export value this year, says Nguyen Duc Thuan, chairman of Vietnam Leather, Footwear and Handbag Association (Lefaso).

In 2017, leather and footwear exports increased by 10.7% to US$17.93 billion, of which footwear made up US$14.67 billion (a year-on-year rise of 12.8%) and bags and suitcases accounted for US$3.26 billion (up 2% compared to the previous year).

Last year, the foreign direct investment (FDI) sector remained on upward trend and contributed a whopping 80.6% to the industry’s total export revenue.

The US topped the importers with US$5.835 billion in the first 11 months of 2017, trailed by the EU with US$4.949 billion. China surpassed Japan to become the third largest consumer of Vietnamese products with a value of nearly US$1.2 billion. Exports to Germany and Japan reached US$1.046 billion and nearly US$1 billion, respectively.

Vietnamese footwear and handbags have made a foray into more than 100 countries in the world with 72 markets having an import value of over US$1 million each.

However, Lefaso Secretary General Phan Thi Thanh Xuan says the industry still faces four major challenges in the coming time, namely high labour cost, industrial automation trend, protectionism trend and fiercer market competition.

Xuan analyses that the minimum wage tripled while GDP doubled in the period between 2010 and 2017. Meanwhile, the industrial automation will help raise productivity and stabilize labour forces but it also presents challenges to businesses, especially small-and medium-sized enterprises.

According to a Lefaso survey, 75% of businesses find it difficult in investing in and applying the automation process while only 25% start the process in a small scale and below 5% plans to apply.

Besides, protectionism acts like Brexit and the US withdrawal from the Trans-Pacific Partnership (TPP) agreement have made a considerable impact on the leather and footwear industry. For instance, the number of orders received from the UK by businesses dropped by 50% last year.

Furthermore, businesses faced with fierce competition from Myanmar and Bangladesh, countries with lower labour costs and enjoying the Generalized System of Preferences (GSP) from the EU like Vietnam.

Basing itself on the world market trend and domestic situation, Lefaso forecast that the industry’s manufacturing index will grow 5% while exports will surge 10% to US$19.5-20 billion, accounting for 9% of the country’s total exports this year. Domestic resources will make up 55% of raw materials. Footwear will remain in top four and handbags and suitcases rank 10th among top ten export products of Vietnam.

Binh Thuan set to grow 9,800 ha of VietGAP dragon fruits in 2018

The central province of Binh Thuan will strive to grow 9,800ha of dragon fruits up to Vietnamese Good Agricultural Practice (VietGAP) standards this year, as heard a local conference hosted by the provincial Department of Agriculture and Rural Development on January 15. 

Speaking at the event reviewing VietGAP dragon fruit farming, Director of the provincial Department of Agriculture and Rural Development Mai Kieu said Binh Thuan is now home to over 27,600ha of dragon fruits with a total capacity of around 553,000 tonnes per year, which has become a key currency earner of the province. 

As of the late 2017, Binh Thuan boasted more than 9,500ha of dragon fruits meeting VietGAP standards, accounting for 30 percent of the total with over 449 alliance teams and 9,600 farming households. Another 262ha of dragon fruits met GlobalGAP standards. 

Pham Van Nam, Deputy Chairman of the provincial People’s Committee, asked departments and agencies to partner with localities and units concerned to raise public awareness of the importance of safe agricultural production. 

A representative from the Dong Tam dragon fruit working group in Ham Thuan Bac district said authorities and localities need to foster connectivity between VietGAP manufacturing teams and link them with businesses to ensure stable and sustainable consumption. 

Further attention was called to restructuring dragon fruit cultivation acreage that is suitable for market demand and assisting farmers in accessing value chains. 

He suggested the provincial agricultural sector work with the industry and trade sector and the provincial Dragon Fruits Association to encourage firms to buy VietGAP dragon fruits from farmers and give priority to them to join trade promotion conferences.

Rosy outlook for Vietnam’s garment trade

2018 is looking rosy for Vietnam’s garment-textile industry, with exports forecasted to fetch 33.5- 34 billion USD, up 10 percent year-on-year. 

Chairman of Hung Yen Garment Company (HUGACO) said he believes the achievements recorded in 2017, thorough preparations of businesses, and the Government’s plan on support industry development will support the industry to achieve robust growth. 

According to the Vietnam Textile and Apparel Association (VTAA), at the beginning of 2017, the sector overcome a range of challenges caused by the pending Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the decreasing global demand for apparels. 

The industry reversed that trend from the second quarter of the year and ultimately raked in an export turnover of 31 billion USD, representing a rise of 10.23 percent from 2016. 

In the year, Vietnam’s garment-textile exports to major markets like the US, the EU, Japan, the Republic of Korea and Russia increased by 7.2 percent, 9.23 percent, 6.1 percent, 11.8 percent and 56 percent, respectively. 

The growth of the Vietnamese garment-textile sector is rated the highest as compared with that of other garment-textile exporters like China, India, Bangladesh, Turkey and Indonesia. 

Duong said garment firms are expected to get more orders in 2018 but suffer pressures caused by dropping garment prices in many markets. 

Truong Van Cam, VTAA Vice Chairman,  noted that the domestic garment enterprises will have compete with their rivals from Myanmar, Cambodia and Bangladesh in terms of insurance, land, tax, transportation and customs procedure costs. 

Le Tien Truong, General Director of the Vietnam Textile and Garment Group (Vinatex), suggested local garment-textile businesses focus on technological applications, investment attraction and the building of connectivity chains of the VTTA. 

Apart from pouring more investments into design, original design manufacturing (ODM) should be increased to 10 percent in order to raise added values of products. 

To achieve the two-digit growth target in 2018, VTAA suggested businesses adapt to market changes, expand the domestic market and diversify products, while forming production chains.

BASF opens AgSolutions Farm in Tien Giang

BASF has recently opened its AgSolutions Farm, a new agricultural solution research farm for crop protection products, in Tien Giang province.

Located in the Mekong Delta region, a major production area for rice, vegetables, and fruits, the facility will serve as a technical and training hub to help farmers and industry players increase yields and profitability, and to promote food safety and environmental protection. Demonstration plots and field trials at the centre will also complement the work of BASF research farms around the world.

“Vietnam is a major rice exporter in the world and one of the most important agricultural centres in the Asia-Pacific. However, while societal expectations for high-quality food are increasing, Vietnamese farmers are facing challenges such as a lack of arable land, as well as climate change, weeds, and diseases,” said Gustavo Palerosi Carneiro, senior vice president, Crop Protection, Asia-Pacific, BASF.

“With our AgSolutions Farm, we aim to bring our crop protection innovation and technical knowledge to the farmers and other industry players so that they can increase their productivity in a sustainable manner,” he noted.

The new BASF AgSolutions Farm will showcase the latest technology and best practices from around the world to drive further innovation in farming in Vietnam, as well as share innovations with neighbouring countries, including Thailand, Indonesia, and the Philippines. The facility will also cultivate partnerships between BASF and local universities and institutes to provide training and develop customised products and solutions to meet local growers’ needs.

Tanachart Ralsiripong, managing director of BASF Vietnam, added, “Vietnam is one of the fastest growing markets in the Asia-Pacific. By establishing the AgSolutions Farm in Tien Giang province, we will get closer to farmers, work to provide better services, and contribute to sustainable agricultural development in Vietnam.”

BASF Crop Protection launched its direct business model in Vietnam in 2013 and has been active in major farming centres, including the Mekong Delta. It works with farmers, distribution partners, and agriculture industry players to offer innovative solutions and product stewardship training to help them boost productivity and profitability.

For example, Headline 100CS is an effective fungicide to help rice farmers protect their plants from disease while preserving the aquatic environment. The product is also part of BASF’s AgCelence portfolio to increase yields and improve grain quality, resulting in higher revenues for farmers and better quality rice for consumers. In the next three years, BASF will launch a broader range of innovative products to effectively support the country’s sustainable agriculture.

Construction material maker Viglacera’s profits hit VND1 trillion for first time

Construction material manufacturer Viglacera Corporation (VGC)’s pre-tax profit hit a record high of more than VND1 trillion (US$44.3 million) in 2017 for the first time, the company recently announced.

The company’s revenue in the year totalled nearly VND16.5 trillion (US$727.1 million), up 2% against the yearly plan and 13% higher than the previous year’s result.

VGC’s strong performance was buoyed by significant contributions of its members like Viglacera Float Glass Company, Viglacera Ha Long Joint Stock Company, Viglacera Infrastructure Development and Investment Company and Viglacera Real Estate Company.

Also in 2017, the corporation put up 120 million shares coded VGC for sale. Under the Employee Stock Ownership Plan, the company increased its chartered capital to VND4.48 trillion (US$197.3 million) and reduced state ownership to 53.97% by the end of 2017.

This year, the company eyes a 6% growth in pre-tax profit and plans to make a 9% dividend payout.

Japanese escalator manufacturer makes foray into Vietnamese market

Alpec joint venture company and Nidec, a Japanese business have stricken a strategic cooperation agreement to provide high-quality elevator installation, warranty and maintenance services in Vietnam.

As the world leading hi-tech group operating in 45 countries across the globe, its turnover rose to US$30 billion last year.  Since its operation in Ho Chi Minh City starting in 1998, Nidec injected a total investment capital of nearly US$800 million into a number of projects in the city.

The bilateral cooperation promises the good supply of high quality and eco-friendly elevators and escalators in line with Vietnamese customers’ aesthetic criteria and their economic conditions.

Alpec is the first domestic manufacturer of gearless elevator motor as well as installer of longest outdoor escalators in Vietnam.

It specializes in manufacturing, installation and maintenance of elevators, escalators, car parking systems with various outstanding features, absolute safety, advanced technologies, unique design concept and especially affordability.

One-stop-shopping tourism website system launched

HI-TEK Inc officially launched its one-stop-shopping tourism website system worldwide on Saturday in Hà Nội through travel.vn, hotel.vn, vietnamesevisa.com and prebook.com.

The US-based company has applied blockchain 4.0 technology to successfully build the tools to allow online room and air ticket booking, which could connect to more than 800,000 hotels and some 150,000 air flights worldwide at websites www.travel.vn and www.hotels.vn.

Members of www.preBook.com could save 75 per cent on the prices for room and air ticket bookings. Moreover, Hi-Tek also co-operated with the Vietnamese embassies to the US and other countries to provide visa services for those entering Việt Nam, making the visa application process both simple and quick at www.vietnamesevisa.com.

Dr Lee Johnson, HI-TEK’s general director, said Việt Nam ranked 17th among countries with the highest popularity of internet use in the world, with 53 per cent of its population using the internet everyday.

Additionally, up to 90 per cent of visitors coming to Việt Nam search for tourism information on the internet.

“This would provide an advantage to tourism companies seeking to develop smart tourism, thanks to applications found in the achievements of the Fourth Industrial Revolution,” he said.

The company said it would continue to invest in a cruise booking system, online ticket purchases for entertainment and culture, as well as car rental services, offering preferential prices for those using its system.

The system is expected to be strong enough to promote Vietnamese tourism throughout the world.

In 2018, HI-TEK targets to build a direct payment portal to reduce intermediate fees to save costs for tourists. It would also promote tourism lending to encourage visitors to Việt Nam, with support from the HI-TEK Travel Bank to attract more than two million Vietnamese living overseas in the US.

Statistics from the Việt Nam Administration of Tourism showed that the country received a record 12.9 million foreign visitors in 2017, a year-on-year increase of 29.1 per cent.

In 2017 there were 73 million domestic travellers, and total revenue from tourism activities was estimated at over VNĐ510 trillion (US$22.4 billion).

Currently, foreign online tourism agencies (OTAs) have been operating in Việt Nam, including agoda.com, booking.com, tripadvisor and Airbnb. There are also local firms entering the market, such as ivivu.com, gotadi.com, chudu24h.com and vntrip.vn.

Tax on imported sugar to remain at 5%     

The tax on imported sugar, as stipulated by the ASEAN Trade in Goods Agreement (ATIGA), will be maintained at 5 per cent from the beginning of this year, instead of zero per cent as previously rumoured.

This was announced in Decree 156/2017/ND-CP, stipulating Viet Nam’s special preferential import taxes in ATIGA for the 2018-22 period.

According to the Viet Nam Sugar and Sugarcane Association (VSSA), this was a good sign for the local sugar industry, as they would face difficulties if the tax was lowered to zero per cent.

The association said that the price of shares of some sugar companies in 2017 were continuously falling, mainly because producers were afraid of competition from sugar importers if the zero per cent tax had been actually imposed on imported sugar.

VSSA’s figures indicated that the wholesale price of sugar last month was VND12,700-14,000 per kilo, a decline of VND200-300 per kilo over the previous month.

By maintaining the 5 per cent import tax under ATIGA, together with abundant sugar supplies and lower selling prices, local businesses would not import sugar from other countries.

By the end of last year, sugar inventories were some 240,000 tonnes.

VSSA said the sugar supply would meet the country’s demand in the first month of 2018, even with increased sales during the upcoming Tet (Lunar New Year) Holiday.

Sugarcane is cultivated on more than 300,000ha across the country, employing 330,000 households, or 1.5 million farmers, and 350,000 workers. 

Viettel Post moves up in business ranking     

By the end of 2017, Viettel Post reached total turnover of VND5.1 trillion (US$226 million) or 112.3 per cent of its yearly target.

With this achievement, Viettel Post has moved forward 80 positions in the list of 500 biggest enterprises in Viet Nam and received the Labour Medal, Second Class.

The company now has over 1,000 post-offices and 5,000 agencies even in remote areas and islands.

Customers now can place their orders, find post-offices, pay bills, monitor the movement of their packages through smart phones.

This is also the first mobile customer support system in Viet Nam.

Viettel Post entered into the logistics industry and launched its customer care service centre in 2017. 

Vingroup, Tan Hoang Minh lead property sales volume     

Vingroup and Tan Hoang Minh were leading in sales volume and revenue of apartments in the local property market in the fourth quarter of 2017 (Q4/2017), according to the Savills Viet Nam, a foreign property service provider in the country.

Do Thi Thu Hang, Associate Director-Research, Savills Ha Noi, said currently, 98 per cent developers of real estate projects were domestic enterprises.

The top three investors with the highest revenue in sales of apartments are Vingroup, Tan Hoang Minh and Sungroup. But when it comes to sales volume, Vingroup, Tan Hoang Minh and Geleximco are the market leaders.

In 2017, 63 new projects entered the property market. New launches remained unchanged year on year (YoY), but primary supply increased 14 per cent YoY. Grade-A projects had the best performance, tripling sales YoY, according to Savills Viet Nam’s quarterly report on Ha Noi property market in Q4/2017.

Savills said customers are buying Grade-A apartments for lease, besides residential purposes. This is the main reason for the impressive increase of this segment.

Meanwhile, the number of sold apartments increased slightly for the Grade-C segment but declined for the Grade-B segment.

Over the past year, Vingroup and Tan Hoang Minh have provided thousands of Grade-A apartments through Vingroup’s Vinhomes branded projects and D’s chain of projects. 

THACO aims to open 15 BMW, MINI showrooms     

Truong Hai Auto Corporation (THACO) plans to put into operation 15 large-scale BMW-brand showrooms in HCM City, Ha Noi and other major provinces and cities this year to provide the best care and best after-sales services to customers across the country.

THACO Chairman Tran Ba Duong told a re-launching ceremony of the BMW, MINI and BMW Motorrad brands distributed by THACO in Viet Nam held in HCM City last Friday.

Duong said THACO has taken over a number of the former distributor’s facilities, machinery and equipment, including inheriting warranty and after-sales services such as two BMW showrooms at Long Bien (Ha Noi) and Phu My Hung (HCM City), and a MINI showroom in HCM City.

“THACO has imported to Việt Nam new BMW and MINI models, such as the BMW 3 Series, BMW 5 Series, BMW 7 Series, BMW X1, BMW X3, BMW X5, BMW X6; MINI Cooper, MINI Countryman, MINI Clubman and powerful Motorrad models,” he said.

Paul de Courtois, Managing Director, BMW Group Asia, said “Viet Nam has been, and still remains, one of the most important and promising markets for BMW Group Asia. We are committed to rebuilding the BMW and MINI brands in Việt Nam in close collaboration with THACO.

“More importantly, we are also looking forward to re-engaging with our loyal customer base in the market. Our customers are our number one priority and with THACO’s extensive experience in the automotive industry, we are confident we’ll be able to strengthen our existing relations and build new ones in the coming years.”

BMW has sold more than 10,500 units in Viet Nam since entering the market 20 years ago. MINI has also recorded sales of more than 500 MINI units since launching in the market in 2013.

Sabeco produces 1.72 billion litres of beer in 2017

The Saigon Beer, Alcohol and Beverage Corporation (Sabeco) produced a total of 1.72 billion litres of beer in 2017 and saw a 11 percent revenue growth year-on-year, said the corporation.

Sabeco continues to take the lead in the Vietnamese beverage market with a 40 percent share, amid increasing pressure from domestic and foreign competitors.

The Ministry of Industry and Trade (MoIT) in December 2017 sold all of its 343.6 million shares or a 53.6 percent stake of Sabeco, for an estimated 110 trillion VND (4.89 billion USD).

An individual investor purchased 20,000 Sabeco shares for 320,500 VND per share while Vietnam Beverage Co Ltd scooped up the remainder for 320,000 VND per share.

Sabeco currently owns 26 manufacturing plants, 10 trading subsidiaries and 37 branches nationwide.

North-South route bidding to open

Bidding must open soon for investors to carry out the 11 projects needed to complete the North-South Express, deputy Prime Minister Trịnh Đình Dũng has said.

The Deputy PM was speaking at a meeting recently to review measures to speed-up preparation work for building the eastern North-South Expressway. 

The Ministry of Transport delivered a report on implementing the National Assembly’s resolution No 52 and asked the Government to accept some proposals during the preparation period for building road sections.

The ministry said it was necessary to remove difficulties so that investment capital could be tightly and effectively managed. This would also overcome shortcomings during implementing projects under the build-operation-transfer (BOT) format.

The Deputy PM also confirmed that appointing investors was not acceptable without wide and transparent bidding to select those capable of carrying out projects effectively and timely.

Last November, the National Assembly passed an investment plan for the construction of the eastern North-South Expressway.

With the approval of 83.1 per cent of deputies, some eastern sections of the North-South Expressway covering a total of 654km will be built during the 2017-2020 period.

Specifically, sections from Cao Bồ (Nam Định Province) to Bãi Vọt (Hà Tĩnh Province), Cam Lộ (Quảng Trị Province) to La Sơn (Thừa Thiên-Huế Province), Nha Trang (Khánh Hòa Province) to Dầu Giây (Đồng Nai Province) and the Mỹ Thuận 2 Bridge will be built and put into operation during this period.

The 2021-2025 period will see the completion of the Bãi Vọt (Hà Tĩnh Province) - Cam Lộ (Quảng Trị Province) and Quảng Ngãi Province -Nha Trang sections and the widening of the La Sơn (Thừa Thiên-Huế ) - Túy Loan (Đà Nẵng) section to a four–lane road. The section from Cần Thơ to Cà Mau City will be put into operation after 2025.

It is calculated that the project will require 3,736ha of land, including 1,037ha of land used for rice cultivation.

The land clearance will be implemented in the form of a six-lane road in all parts of the project, except for the Cam Lộ-La Sơn section, which will have four lanes.

It is estimated that the total investment for the project in 2017-2020 will be VNĐ118.7 trillion (US$5.27 billion), including VNĐ55 trillion ($2.4 billion) from the Government and the remainder from investors.

The highway has been divided into 11 sub-projects.

Vietnam’s first smart fertilizer factory opened in Tra Vinh

The first smart fertilizer factory in Vietnam was inaugurated in Long Duc Industrial Park in Tra Vinh city, the Mekong Delta province of Tra Vinh, on January 13.

Covering 5ha of land, the plant of Rynan Smart Fertilizers Joint Stock Company has total investment of over 35 million USD and is able to manufacture 50,000 tonnes of products each year.

In the first phase, it is invested with around 10 million USD and produces 20,000 tonnes of products every year.

Chairman of the firm’s board of director Nguyen Thanh My said smart fertilizer is coated with a layer of hi-tech polymer that is environmentally friendly and helps reduce greenhouse gas emissions by over 60 percent.

After water is absorbed through the coat, such minerals as nitrogen, phosphorous, potassium, and copper are gradually dissolved. Depending on each type of crop, the time for smart fertilizers to release all minerals varies from one to 12 months or longer. 

Therefore, farmers only need to fertilize once while the amount of needed fertilizers is 40 – 60 percent less than the normal ones, but crop productivity can increase by over 10 percent, he added.

First seafood batch of 2018 shipped abroad

The Vietnam Association of Seafood Exporters and Producers (VASEP) on January 14 shipped abroad the first batch of aquatic products in 2018 at Cat Lai port in Ho Chi Minh City.

The batch included three containers of frozen shrimp, sea fish and tra fish fillet at a total value of nearly 600,000 USD. The goods were exported to Canada, the US and the UK - three major traditional markets of Vietnamese seafood.

According to VASEP President Ngo Van Ich, in 2017, the aquatic sector overcame many difficulties in materials and markets to fulfilll its export target of 8.3 billion USD, heading to the goal of 10 billion USD in 2020.

Meanwhile, Minister of Agriculture and Rural Development Nguyen Xuan Cuong hailed the sector’s efforts in 2017 to surpass the milestone of 8 billion USD in export turnover for the first time.

This year, the sector is expected to create a new milestone in export value, exceeding the set target of 8.5 billion USD, he noted.

The minister asked the sector to focus on developing promising markets such as Australia, Japan, the Republic of Korea and China.

Enterprises should improve the quality and design of their products to create more added value and build trademark for Vietnamese seafood in the world market, he added.