Hoa Phat Group expands to animal feed production

Hoa Phat Group, which makes up 20% of the local construction steel market, on March 9 launched its animal feed subsidiary in a bid to diversify its operations.

The first animal feed factory in the chain of Hoa Phat Animal Feed Commercial and Production Company One Member Ltd. Co is located at Pho Noi A Industrial Park in the northern province of Hung Yen.

The factory is scheduled to start operation in early 2016 with an annual capacity of 300,000 tons. The company targets revenue of VND3 trillion (US$140.7 million) in the next three years when more factories of the chain are inaugurated.

Hoa Phat Group’s chairman Tran Dinh Long said competition in animal feed production and distribution is huge and even fiercer than in the steel sector. But Long believed the group could gain success in the new sector based on 20 years’ experiences in the domestic market and in the industrial production field, and its strong financial capability.

The domestic animal feed market is growing at a double-digit rate. Fifty-nine foreign-invested firms and joint ventures dominate half of the market while 180 domestic firms share 20% market share, and the rest is for imported products.

Big companies in the sector include CP Group, Proconco, New Hope and GreenFeed.

Ministry counts on private sector in airport projects

The chief of the Business Management Department at the Ministry of Transport is pinning hopes that raising funds from the private sector for airport projects is feasible given high growth in the aviation market and profitability at a number of operational airports.

Vu Anh Minh said the local aviation industry is in dire need of hefty funds to grasp growth opportunities.

Minh told the Daily that local airlines have raised funds to develop their facilities and expand their fleet in recent years, and that VietJet Aviation Joint Stock Company (VietJetAir) is a case in point.

In the past years, Airports Corporation of Vietnam (ACV) has executed a series of aviation infrastructure projects using its capital and loans from different sources.

Airport developments in 2011-2014 required more than VND45 trillion (US$2.12 billion), but the State budget and the proceeds from the Government bond auctions accounted for only 13.7% of the total.

The ministry will look for more funds for airport projects, including the proceeds from the equitization of ACV and its subsidiaries, the sale of operation rights to airports and terminals, and private investments.

Minh said the ministry has prepared a list of projects and investment forms for investors to select in addition to plans to transfer the operation rights to Phu Quoc International Airport, Terminal 1 (T1) at Noi Bai International Airport, and Danang International Airport.

Investors will be offered priorities when they get involved in development of Long Thanh airport project in Dong Nai Province, expansion of Tan Son Nhat International Airport in HCMC, and construction of a new runway and terminal at Cam Ranh International Airport.

Minh said the projects are expected to attract many investors as Vietnam is rated by the International Air Transport Association (IATA) as one of the fastest-growing markets in terms of passenger numbers.

Vu Pham Nguyen Tung, project development director at VietJetAir, said demand for air travel in Vietnam has grown 20% a year in the past three years, or an annual increase of about four million passengers.

Tung said the no-frills carrier would be more active in developing its business strategy if an airport terminal is for its own flights.

VietJetAir has proposed buying the right to operate Terminal T1 for domestic services at Noi Bai International Airport after Transport Minister Dinh La Thang floated the idea of selling the operation rights to Phu Quoc airport off mainland Kien Giang Province and part of T1 at Noi Bai this year to raise funds for other projects.

The State-owned Vietnam Airlines Corporation has also asked the Ministry of Transport for approval to buy the domestic terminal just days after VietJetAir expressed strong interest in acquiring it.

TPP holds out prospect of strong trade ties with U.S.

Vietnamese companies would benefit from Vietnam’s growing trade and investment relations with the United States when the multilateral trade agreement Trans-Pacific Partnership (TPP) is signed, heard a seminar on investment and business opportunities stateside in Hanoi on March 9.

At the seminar held by the Law Office of Sterling Harwood and the Hanoi Young Entrepreneurs’ Association, investment consultant Dang Duc Dung, former vice chairman of the association, said that TPP would open up a host of opportunities for enterprises to enter the U.S. market.

“TPP will give us many chances to tap into the U.S. It is not easy to enter this market, but once we get into it, the competition is fair.”

To penetrate the U.S. market, Vietnamese enterprises need to have legal counsels, partner with U.S. firms or directly invest in projects, according to Dung.

According to the General Department of Customs, two-way trade between Vietnam and the U.S. reached US$34.94 billion last year, with U.S. imports from Vietnam totaling nearly US$30.6 billion, up 24% year-on-year.

Apparel made up 34.3% of Vietnam’s exports to the U.S. last year. Vietnam shipped US$3.55 billion worth of footwear to the U.S last year, rising by over 22% compared to the previous year.

Regarding TPP, Dung said the TPP would create a market with 800 million consumers, and its member states would account for 40% of global GDP and 30% of global trade. The TPP will create connections between developed and developing countries as well.

“TPP will offer great benefits in terms of market expansion thanks to tax reductions, with many tariff lines falling to 0%, and the participating countries will not have to compete with China,” Dung said.

Vinasa upbeat about IT market this year

Business opportunities abound for information technology (IT) enterprises this year and the Vietnam Software and IT Services Association (Vinasa) will carry out programs to help its members grasp them.

At a meeting with member enterprises on Sunday, Vinasa general secretary Pham Tan Cong said when Vietnam joins the ASEAN Economic Community and signs a number of free trade agreements with other countries, the demand to apply IT at organizations will surge.

Foreign partners, especially companies in big markets like Japan, the United States and Europe highly value Vietnam’s capability of software and IT services. Therefore, Vietnamese software and IT enterprises can win contracts from them.

Vinasa chairman Truong Gia Binh said local enterprises should prepare resources to make the most of opportunities this year.

Binh said the IT sector has new opportunities from the urgent need for information security as well as growing demand from S.M.A.C (social, mobile, analytic, cloud) technology. The workload concerning S.M.A.C is big, offering many chances for local IT enterprises.

Vinasa will support IT enterprises to capitalize on the opportunities, particularly young enterprises, according to Binh.

Binh Duong to equitize Becamex IDC, Thanh Le

Binh Duong Province is working on plans to equitize Becamex IDC Corporation and Thanh Le General Import-Export Trading Corporation this year, said Tran Thanh Liem, vice chairman of the province, at a press briefing on March 9.

Liem said a steering committee for equitization and corporate value assessment of the two enterprises had been established. After equitization, State ownership at the enterprises will fall to 75% from the current 100%.

In November last year, Binh Duong Province wrote to the Prime Minister seeking approval for the equitization plans and the transformation of the State-owned enterprises into joint stock companies.

One month later, Deputy PM Vu Van Ninh signed a document approving the plans.

Becamex IDC has invested in multiple infrastructure projects while Thanh Le is active in diverse business fields. They are big enterprises in the southern province and have posted good earnings in the past years.

Japan funds six projects in rural areas

The consulate general of Japan in HCMC last week signed an agreement to provide grants worth more than US$580,260 for educational, healthcare and environmental projects in rural areas in the southern, central and Central Highlands regions.

The six projects include a waste management system worth more than US$103,000 in Dong Thap Province’s Thap Muoi District, a project costing over US$77,500 to build an elementary school in Dak Lak Province’s Ea H’leo Commune, and a US$93,700 project to upgrade infrastructure for kindergarten, elementary and secondary schools in Bac Ai District, Ninh Thuan Province.

Other projects are healthcare equipment supply for the general hospital in Tra Vinh Province’s Tra Cu District, the reproductive health care center in Ninh Thuan Province, and the healthcare facility in Kien Giang Province’s Giang Thanh District, with each costing more than US$101,000.

At the signing ceremony, the Japanese consul general in HCMC, Nakajima Satoshi, said the projects are aimed to improve the living quality of people in rural areas and ethnic minority groups.

Satoshi called for the recipients of the funding to operate those projects effectively.

Steel, construction, property lead Vietnam recovery

Fast growth in the steel, construction and real estate sectors are leading the economy out of recession, studies released on March 10 by Vietnam Report JSC.

The fifth consecutive annual FAST500 ranking for Vietnam's top-500 fastest growing firms gave first place to Samsung Electronics Vietnam Co. Ltd.

Performance is calculated on the compound annual growth rate of revenue from 2010 to 2015, factoring in total assets, the number of workers, after-tax profit and public profile. The average growth rate of the top 10 companies in FAST500 from 2013-2015 was 102.18 percent.

Vietnam Report also published a ranking list of 500 fastest growing small and medium-sized enterprises. The compound annual growth rate of the ten leading firms was at 82.29 percent.

The report showed an economic downturn in 2010-13, with an average growth rate during this period of 31.1 percent, compared with 44.7 percent in 2009-12.

The latest reports showed that steel had the highest average growth of 37.4 percent. The construction and real estate sectors followed with 36.9 percent. Vietnam Report said the economy was in recovery and 2014-15 was good period for business expansion.

Most of surveyed firms said they will expand their businesses, with 19.2 percent seeing continue stability, with 5.1 percent expecting contraction. Competition was expected to increase with 60.3 percent considering the rise of their rivals in the same sector to be the biggest challenge.

The firms hope the government will maintain low interest rates and create favourable conditions for accessing loans, as well as lower corporate income tax, more infrastructure development and more commitment to developing human resources.

PVN to invest US$2.3 million

The Vietnam Oil and Gas Group, or PetroVietnam (PVN) plans to invest VND500 billion (US$2.3 million) in building an oil dump and logistics port system.

A corner of Vung Ang oil dump invested by the PVN in central Ha Tinh Province. The group plans to build a bigger oil dump in Phu Quoc Island with a capacity of 100,000 cubic metres. Photo tuoitre.vn

It will be built in the Phu Quoc Island District of the southern province of Kien Giang.

During a meeting with provincial authorities, PVN proposed to build the project spread over 32 hectares (ha) of land and nearly 60 ha of sea. The oil dump will be designed to contain about 100,000 cubic metres, while the port system will serve vessels, which have a deadweight tonnage (DWT) of between 15,000 DWT and 30,000 DWT.

The investment in the project will be made from this year till 2017. If the project is approved by the Kien Giang authorities, it will operate for 70 years.

Ha Noi Tourism Transport Enterprise to launch IPO

The Ha Noi Tourism Transport Enterprise plans to launch its initial public offering (IPO) at the Ha Noi Stock Exchange on March 26.

Ha Noi Tourism Transport Enterprise, which is mainly active in providing transport services via buses, plans to launch its IPO on March 26. Photo transerco.vn

More than 3.8 million shares will be sold during the IPO, accounting for 45 per cent of its chartered capital, at an initial price of VND10,000 (US$0.48) per share.

It has a registered capital of VND85 billion ($47 million), of which the State owns 49 per cent.

The enterprise, under the ownership of the Ha Noi Transport Corporation, is mainly active in providing transport services via buses and has a total fleet of 22 buses. It had recorded a growth rate in revenue of 307.5 per cent during the 2012 to 2014 period, from VND293 million ($13,900) in 2012 to 938.6 million ($42,800) in 2014.

After the IPO, the company will be renamed Newway Transport Joint Stock Company and its activities will focus on providing transport services, vehicle maintenance services, transport vehicle's spare parts, and organise inbound tours.

Hapro expands its export markets to Africa

Ha Noi Trade Corporation (hapro) has make every effort to expand its export market to Africa, mostly focusing on Angola and Mozambique.

In addition, Hapro will also expand its exports to other markets like Cuba and Myanmar. It plans to export major products such as pepper, cashews, rice, handicrafts and consumer goods to these countries.

Hapro CEO Nguyen Huu Thang said his corporation would spur investment in infrastructure facilities and export activities with the aim of raising the production capacity at its satellite manufacturing companies.

Last year, Hapro earned a total export turnover of US$281 million to more than 70 countries and territories.

Sacomreal set to sell low-priced apartments

Property developer Sacomreal is set to offer for sale 1,290 units at its Jamona Apartment project in Phu Thuan Ward, District 7, at what is possibly the lowest price in the area.

The apartments will start at VND636 million (US$30,285).

The first social housing project in District 7 to successfully access the Government's VND30 trillion ($1.42 billion) credit package will enable buyers to get loans worth 80 per cent of the apartment value at an interest rate of 5 per cent over 15 years.  

Buyers will have to pay only VND2.8-5 million ($133-238) per month.

Work on the 1.53ha project will start in early May and be completed in the first quarter of 2017.

Japan printer manufacturer expands operations

Japan's Kyocera Corp plans an expansion worth US$57.8 million in Viet Nam this year in an effort to shift part of its high-cost Chinese operation to the country.

By March 2018, its factory in the northern city of Hai Phong is expected to produce two million units of multi-purpose printers each year, quadrupling the current level.

Construction on a new facility producing metal moulds and plastic components will also begin no later than this August.

The workforce is expected to triple to 5,000 with over 200 employees working in research and development.

Kyocera currently produces over two million multi-purpose printers annually, mostly in China. Europe accounts for the largest market share, especially Russia and Turkey.

Conference looks to raise VN's ease-of-doing-business ranking

Viet Nam is seeking to improve its business environment, which has also been recognised by the Government as a vital task for ensuring economic growth and competitiveness in the economy.

As part of the effort, the Central Institute for Economic Management (CIEM) and the United States Agency for International Development (USAID) jointly held a conference yesterday to discuss measures to implement the Government's Resolution and enhance the country's ease of doing business index, which is ranked by the World Bank.  

The Resolution, issued in March 2014, aims to improve the business environment and competitiveness of Viet Nam by reducing costs, time and risks involved in doing business in the country.

At a Government meeting earlier this month, Prime Minister Nguyen Tan Dung expressed the Government's determination for improving the country's business climate, saying that it is critical for socio-economic development and has become an urgent task for Viet Nam amidst rapid global integration.

Dung said ministries must come up with detailed measures aimed at administrative reform, including tax, customs and power access, and create a breakthrough in the business climate within this year.

Nguyen Dinh Cung, head of CIEM, said the institute is working with the business community and associations to figure out solutions for challenges that will hit Viet Nam while improving the business environment and enhancing competitiveness. He said the framework of USAID's Government for Inclusive Growth project has offered opportunities to Vietnamese policy-makers for learning from international experiences in improving business climate.

During the six-day conference, discussions will be carried out about the 10 topics covered in the World Bank's "Doing Business" report.

These include getting electricity, trading across borders, enforcing contracts, registering property, getting credit, dealing with construction permits, resolving insolvency, protecting minority investors, starting a business and labour market regulation.

The World Bank's experts said Viet Nam needs to target a roadmap for reducing administrative procedures and cutting costs for businesses. The latest "Doing Business" report by the World Bank announced last October ranked Viet Nam 72nd among 189 countries in terms of ease of doing business.

The Government expects the ease of doing business index to reach the average level of the ASEAN-6 (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand) by the end of this year and of the ASEAN-4 (Singapore, Malaysia, Thailand, Philippines) by 2016.

Consumers urged to unite for their rights

Consumers should come together to find effective solutions for ensuring the protection of their rights as 90 per cent of consumers are ignorant about the organisations that protect their benefits.

This was revealed by a recent online survey of more than 1,200 customers, conducted by the Institute for Studies of Society, Economy and Environment (iSEE).

The survey further revealed at a conference on "Vietnamese consumers' rights: Issues and Solutions" held in Ha Noi yesterday that most people pay attention to basic information, such as production date, price, trade mark and origin.

In addition, customers often chose to buy a product, based on available information on social networks or experiences of their relatives or friends, but do not care about corporate social responsibility.

The survey also pointed out that 46 per cent of consumers bought products, whose quality was poorer than advertised, while 40 per cent of the people bought products with unclear information about the origin of ingredients.

However, only 2 to 3 per cent of Vietnamese file complaints or lawsuits when their rights are violated. The main reason for this is that they are afraid of spending extra time and money, and our unaware of protection mechanisms they can use.

Up to 98 per cent of consumers are not even members of consumers protection associations or clubs.

Nguyen Manh Hung, vice chairman and general secretary of the Viet Nam Standards and Consumers Association (VINASTAS), said customers should associate with each other to protect themselves.

"In reality, boycotting products of organisations or individuals selling poor-quality products has a stronger effect than punishments," Hung stated.

He added that around 1,000 complaints a year are sent to VINASTAS, which is much lower than the actual number of such complaints existing in reality. The association has also extended support for helping resolve complaints with a success rate of over 80 per cent.

Hung proposed that the Government should enhance communication among consumers by using the available complaints mechanism for asserting their rights and building a financial system for consumer protection fund.

In addition, the administrative procedures involved in filing lawsuits should be simplified.

"Customers often ignore violations easily or simply share them on a social network when buying poor quality products. This reflects a lack of active opposition. Consumers should seek out organisations representing their rights to settle cases related to such violations," he added.

Le Quang Binh, chairman of the People's Participation Working Group (PPWG), said the Law on Consumer Protection stipulates that protecting customers is the common responsibility of the Government and society. However, the governmental agencies should implement this duty better.

Sharing these ideas, Pham Que Anh, director of Consumer Unity & Trust Society in Viet Nam, suggested that compensation for consumers should not be paid by the State budget, but paid for customers through protection activities.

Anh added that the Government should not only allow individuals to file lawsuits against businesses, but also organisations, which represent consumers and take up such work for the community's benefit.

Phan Thanh Ha from Ha Noi's Cau Giay District narrated a bad experience she had while buying an electronic appliance online. The product was not as good as described in the advertisement. However, she did not make any complaint to the seller and instead accepted having to buy another product.

"Most customers are afraid of making complaints to the producers or sellers. We have never thought of filing a lawsuit as it is considered a waste of time and money," she said, adding that she had shared her experience with some of her friends on Facebook to help them avoid buying the product.

"I'd rather buy a new one. It is the safest and fastest way to avoid having any further problems."

Last year, the country had received 1,551 complaints from customers of which 471 cases were resolved successfully.

VN, Kazakhstan eye more teamwork

Viet Nam and Kazakhstan see potential for closer economic co-operation, participants agreed at a conference held at the Viet Nam Academy of Social Sciences yesterday.

Medet Makulzhanov, the Counsellor of the Kazakhstan Embassy in Viet Nam, said that Kazakhstan prioritises co-operation with Asia as part of its multi-lateral economic relation policies.

"We have already implemented a master plan for industrial development and are calling for foreign direct investment (FDI) into projects amounting to more than US$40 billion. We expect to see joint ventures with Vietnamese enterprises," remarked Aibek Smadiyarov, the Second Secretary of the Embassy.

Aibek claimed the Central Asian country wants to boost investment activities with Viet Nam in such areas as telecommunications, tourism, seaports, and oil and gas.

He added that while Viet Nam has invested some $24 million in Kazakhstan, increasing trade value between the two countries would form the basis for further co-operation. The bilateral trade turnover rose from $38.2 million in 2010 to nearly $272 million in 2014.

"The transaction values remain small, but the growth rate is significant, thus we can be confident in the potential for trade," said Pham Thi Ngoc Bich, the deputy director of the Ministry of Foreign Affairs' Europe Department.

Viet Nam Chamber of Commerce and Industry Vice Chairman Doan Duy Khuong noted that strong foundations exist that could accelerate co-operation efforts to achieve these potential gains.

A direct air route connecting Viet Nam and Kazakhstan, established after the two countries signed an aviation transport agreement in 2013, has significantly facilitated trade and tourism.

Viet Nam also concluded negotiations for a free-trade agreement with the Customs Union of Belarus, Kazakhstan and Russia last December. This will open up new opportunities in foreign trade for farm produce, seafood, garments and textiles, and footwear, as well as furniture, machinery and transport vehicles.

"The ASEAN Economic Community will officially be established in 2015, and boosting co-operation with Viet Nam means fostering accession to the ASEAN market with a population of over 600 million," asserted Khuong. "The benefits are great, and we welcome Kazakhstan investors to Viet Nam."

Kazakhstan Ambassador to Viet Nam Beketzhan Zhumakhanov noted that Kazakhstan also wants to join hands with Viet Nam in developing the sciences, healthcare, education and culture. These are in line with Kazakhstan's new economic policies that aim at implementing economic structural reforms, stimulating small and medium-sized enterprises, and creating more jobs for the people.

Second Secretary Abek said Kazakhstan aims to create a more advantageous investment environment while the country is preparing to join the World Trade Organisation.

The FDI capital poured into Kazakhstan alone by the European Union has reached some $92.7 billion, with the Netherlands, the United Kingdom, Italy and France being the major investors, according to Counsellor Medet.

US holds potential for local wood products

Viet Nam has opportunities to expand exports of wood products this year, especially to the US market, delegates said at a conference yesterday.

Despite global economic difficulties, the wood processing industry has enjoyed an average growth of 15 per cent over the past seven years (2008-14), said Huynh Van Hanh, deputy chairman of the Handicrafts and Wood Industry Association of HCM City (Hawa).  

Last year the country earned US$6.2 billion from the export of wood and wooden products, a year-on-year increase of 11.5 per cent, Hanh told participants at a conference on Export to the US Market: Opportunities and Challenges.

The US was the biggest import market for Vietnamese wooden products, accounting for 35.6 per cent of the total export revenue, followed by China (1536 per cent), Japan (13.9 per cent) and the EU.

Hanh said exports to the US market increased strongly in recent years from $1.39 billion in 2010 to $2.23 billion last year, with bedroom, kitchen, and office furniture being among key export items.

The recovery of the US economy has increased consumption of furniture products in the market, said Tran Quoc Manh, Hawa's executive board member and chairman of Saigon Trade and Production Development Corp.

The upcoming Trans-Pacific Partnership agreement will open up export opportunities for Vietnamese firms to the market, including those in the wood industry, he said.

Hanh said last year China's wood products exported to the US declined significantly because the US imposed high anti-dumping duties on Chinese wood products, opening up opportunities for Viet Nam to increase exports to the market.

Viet Nam is the second-largest exporter of wood products to the US, but it accounts for a small share compared to China, the largest exporter of wood products to the market, meaning there is still room for Vietnamese firms to boost exports to the market.

Viet Nam's furniture export value currently accounts for just 2.68 per cent of the total figure of 70 furniture exporting countries.

Wood and wood products exports are expected to grow by at least 15 per cent this year, reaching at least $7.2 billion, Hanh said, adding that export revenue was $1.049 billion in the first two months of the year, up 14 per cent over the same period last year.

 Hungary to invest in VN technology, food

Hungary has prioritised Viet Nam as a strategic economic partner, said Mikola Istvan, Hungary's State Secretary of Foreign Affairs and Economics.

He made the announcement at the Viet Nam - Hungary Business Forum, held by the Ministry of Inudstry and Trade (MoIT) in Ha Noi yesterday.

The two countries have made stable, significant improvements in their economic relations, Istvan said. Their total export-import turnover has grown 10 per cent, but it is still low relative to the partnership's potential. Hungary would assist Hungarians working with Vietnamese partners and invest in information technology, medical equipment, food processing and environmental protection, he added.

Do Kim Lang, deputy director general of the Viet Nam Trade Promotion Agency, said that with its highly developed industry, Hungary could help Vietnamese enterprises improve their machinery and equipment in order to increase the value of their exported goods.

He added that Viet Nam would find more opportunities to co-operate with other countries when it had finished signing its free trade agreements.

Local enterprises also saw the forum between two countries as a chance to expand their business to Hungary.

Pham Thanh Tuyen, sales manager of Avina Logistics, said his company focused on transport services and had been negatively affected by the global economic crisis.

He said activities like this forum would help his company find new international partners and more opportunities in overseas markets.

Tran Manh Dung, a sales manager for Vietnam Technical Scientific Application Joint Stock Company, said that the forum would be helpful for Vietnamese businesses looking to expand to Hungary. But local firms would face some challenges developing their brands for overseas markets, so he said he hoped the two governments could work together to help businesses prepare.

According to the MoIT, total trade turnover between Viet Nam and Hungary last year reached US$175 million, with $55 million exported from Viet Nam and $120 million exported from Hungary.

Viet Nam's major exported products to Hungary were food and telecommunication, while Hungary invested in 13 projects in Viet Nam involving agriculture, food production, pharmaceuticals and medical equipment.

Receiving Istvan at the Government Office yesterday, Deputy Prime Minister Hoang Trung Hai said he appreciated the Hungarian delegation's visit, which he believed would foster multi-sector and comprehensive co-operation between the two countries.

Cosmetic products receive Golden Beauty awards

Many cosmetic and healthcare products and services have been honoured with the Dep Gia Tri Vang (Golden Beauty) award for quality and achieving breakthroughs in research and application.

The 11th annual awards given by Dep magazine saw 61 winners in 28 categories following a three-month vote by women around the country.

Some big brands that won include OHUI the First Cell Revolution Cream Original in the skin care products, anti-ageing and anti-wrinkle category and SHU UEMURA Rouge Unlimited Suprme Matte Lipstick, M.A.C Retro Matte Lipstick, and LANCOME Lip Lover in the make-up category.

Dermalogica and Vaseline won in the body lotion category and ADIVA collagen essence in the beauty care support product group category.

Instituted in 2004, the award provides an opportunity for cosmetic products and beauty care services to underline their position in the Vietnamese market.

Viettel eyes global status by 2020

The military-run telecommunications group Viettel aims to become one of the world’s top 10 telecom companies by 2020 with a presence in 30-35 countries, the firm’s executives told Prime Minister Nguyen Tan Dung at a working session on March 11.

Viettel currently has the second largest revenue among nearly 500,000 businesses in Vietnam with 197 trillion VND (9.38 billion USD) in 2014, a 20 percent annual increase. The earnings accounted for more than 10 percent of State-owned enterprises’ total figure.

Last year, it posted a pre-tax profit of 42 trillion VND (2 billion USD), an annual rise of 15 percent and representing 23 percent of the profit made by firms owned by the State.

Its tax payments exceeded 15 trillion VND (714.28 million USD), climbing 10 percent from the previous year and boosting Viettel to be the largest tax contributor in Vietnam.

The group is now employing roughly 90,000 people, including 75,000 in Vietnam and 15,000 abroad.

It has thus far invested in nine countries, namely Laos, Cambodia, Timor-Leste, Haiti, Peru, Mozambique, Cameroon, Tanzania, and Burundi. Viettel’s overseas revenue grew 25 percent to 1.2 billion USD in 2014 with a pre-tax profit of 156 million USD, up 32 percent.

The firm owns three telecom equipment and electronic device research institutes, two software companies, and two factories.

At the working session, Viettel executives highlighted their resolve to see surges of 20 percent in revenue and 15 percent in profit this year.

In addition to telecommunications and overseas investments, it is developing high-tech device research and production activities, the firm’s leaders said.

Speaking highly of the accomplishments, PM Nguyen Tan Dung asked Viettel to maintain its impressive progress and step up science-technology research and application to elevate the company to a leading group in the region.

He also pledged optimal conditions for the company to develop and realise its assigned targets.

Monthly auto sales fall dramatically

Automobile sales reached 12,329 units in February, a 38 percent drop from January, reported the Vietnam Automobile Manufacturers’ Association (VAMA).

Despite the plunge, the figure still represented an annual leap of 69 percent.

More than 7,900 of the cars sold were assembled in Vietnam, down 41 percent, while another 4,400 were foreign imports, down 32 percent, VAMA said.

In February, the Truong Hai Auto Corporation led car sales with 2,965 sales, followed by Toyota Motor Vietnam (2,868 units), Ford Vietnam (925 units), Honda Vietnam (505 units), and GM Vietnam (419 units).

Two-month automobile sales soared 76 percent from the same period in 2014. The sales of domestically assembled and imported units shot up 73 percent and 111 percent annually, respectively.

Enterprises in the Mekong Delta province of Vinh Long took part in a trade fair in Kampong Speu town in the Cambodian province of the same name.

Speaking at the opening ceremony on March 11, Cambodian Minister of Commerce Sun Chanthol praised the participation of Vietnam’s businessmen, which he said reflected the strong cooperation efforts made by the two provinces’ authorities.

Vietnamese commodities displayed at the exposition—including construction materials, agricultural produce, saplings and fertilizer—received positive responses from locals.

The Kampong Speu trade fair lasts through March 13, featuring 80 booths run by Cambodian and Vietnamese enterprises.

Vietnam handicrafts eye Northern European markets

A delegation of 12 Vietnamese handicraft enterprises has paid a working visit to Norway to promote their products and seek partnerships and export opportunities.

Headed by Deputy Director of Hanoi’s Department of Industry and Trade Dao Thu Vinh, the delegation met with representatives from the Enterprise Federation of Norway (VIRKE), Oslo Chamber of Commerce and a number of local businesses, including Senze of Joy, Northern Gifts AS and Aurora verksted AS in Oslo.

A handicraft exhibition was held during the March 9-10 visit, featuring various new designs created through collaborative efforts between Vietnam and several Northern European designers.

Speaking at the exhibition’s opening ceremony, Vietnamese Ambassador to Norway Le Thi Tuyet Mai and VIRKE Director Thomas Angell spoke highly of the collaboration between Vietnamese and Norwegian businesses in trade promotion activities.

Hanoi is home to over 1,300 handicraft villages, equivalent to 65 percent of the country’s total villages.

The capital city has been working with the Vietnam Handicraft Exporters Association (VIETCRAFT) to draft a business plan focused on developing handicraft designs in coordination with experts and design institutes in Northern Europe, the world’s leading centre of creative industries.

According to VIETCRAFT Vice President Le Ba Ngoc, handicrafts have become key Vietnamese exports in recent years. The country shipped abroad 1.7 billion USD worth of handicrafts last year, providing employment to 1.5 million rural workers.

Gov’t pushes for reforms to improve business environment

The Prime Minister will focus on improving the business environment and strengthening the economy's ability to compete in 2015 and 2016.

Key areas of a recent Government resolution include pushing for reforms to reduce time-consuming and wasteful administrative procedures, enhancing governmental offices' transparency and accountability, and adopting regulations that are in accordance with international rules.

Another high priority is raising the country's business environment indicator to higher than the ASEAN average.

In addition, the Government will also strive to reduce its average tax-filing time to 121.5 hours per year (from 872 hours in 2013 and 537 hours in 2014) and raise the number of businesses that complete online tax applications to 95 percent.

Advancements in science and technology will help with the restructuring of the agriculture sector, according to the resolution. The sector must also enhance product quality and competitiveness, while ensuring food security and sustainable development.

The Government also made other superior value-adding industries like tourism, finance and telecommunications priorities in the national development programme.

More State-own enterprises would be restructured. The Government aims to adapt them according to the principles of the market economy. But preferential policies would also be created to stimulate private growth.

Special policies and mechanisms will also be established to level the playing field between large State-owned enterprises and small-to-medium-sized enterprises. Firms will also be encouraged to pour more capital into research and development.

Ministries, sectors, cities and provinces were ordered to take steps to improve their investment and business environments, and resolve any impediments in the implementation of administrative procedures.

The new resolution also recommended the privatisation of a number of public services. It advocated for giving key sectors such as education, health care and technology more autonomy.

The Government was to run a pilot programme to test a number of projects, using the public-social partnership approach.

Data digitalisation helps firms cut costs

Many domestic firms have digitalised data and applied cloud computing to reduce operation and equipment costs at their information technology departments, heard a recent conference held by VMware Vietnam in Ho Chi Minh City.

Firms could save 30 percent of the spending on equipment purchases at their IT departments, and increase security if they digitalise data and use cloud computing services, Phu Quoc Si, Director of the IT division at Prudential Vietnam, was quoted by The Saigon Times Daily as saying.

At the conference on March 10, VMware announced a survey on the application of cloud computing with 445 senior executives of companies in the first two months of this year.

Around 91 percent of respondents, including IT directors, said they will apply cloud computing to at least 30 percent of their data in the next two years.

Notably, the number of firms expected to digitalise 90 percent of data or more will increase from 11 percent at present to 35 percent in 2017.

Huynh Phuc Yem Quan, Director of VMware, said some banks like Asia Commercial Bank (ACB), Saigon Thuong Tin Commercial Bank (Sacombank) and DongA Bank have digitalised over 90 percent of their data.

Quan said Vietnam takes the lead in ASEAN with the highest ratio of firms applying digitalisation and cloud computing.

According to a report of IDC, businesses in ASEAN can save over 92 billion USD in 2014-2020 if they apply the methods.

Vietnam boosts trade, investment ties with Egypt

Vietnamese Minister of Agriculture and Rural Development Cao Duc Phat is visiting Egypt to attend the country’s Economic Development Conference from March 13-15 with the aim to enhance bilateral trade and investment ties.

Vietnam’s participation in the conference reflects the two nations’ time-honoured friendship and solidarity, said Phat, adding that the event presents a good opportunity for Vietnamese businesses to seek cooperation opportunities and contribute to elevating trade value to 500 million USD this year.

The Egyptian Economic Development Conference has a great political and economic significance to Egypt, the most populous country in the Middle East and North Africa. The Egyptian Government plans to introduce and call for investments in 30 large-scale projects worth roughly 20 billion USD, mainly in oil & gas, electricity, mining, transport & logistics, tourism and education.

Bilateral ties between Vietnam and Egypt have progressively grown, fortified by mutual support provided at international forums. Egypt also recognised Vietnam’s full market economy mechanism in November 2013.

Trade reached 370 million USD in 2014, up 85 percent from the previous year. Vietnam mainly sells agricultural and seafood products and automobile spare parts to Egypt.

Vietnam’s current participation in eight free trade agreements and negotiations on six others coupled with Egypt’s participation in the Arab Free Trade Area will create favourable conditions for enterprises in both nations to expand their exports to other markets.

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