Vietnam Online Business Forum opens

The Vietnam Online Business Forum (VOBF) 2018, the second of its kind, opened in Hanoi on March 14 to the welcome of investors following the 2017 success.

The VOBF will also come to Ho Chi Minh City on March 16. 

In his opening speech, head of the Ministry of Industry and Trade’s Department of E-Commerce and Economy Dang Hoang Hai said after two decades of the Internet’s presence in Vietnam, e-commerce has been exploding and become popular in the lives of businesses and people. 

Statistics showed that e-commerce has grown over 20 percent, and particularly 25 percent in 2017 – among the world’s fastest. 

Hai hoped that the forum, with the participation of prestigious exerts at home and abroad, will discuss new e-commerce trends, outstanding technologies and innovative business ideas. 

The E-Business Index released by the Vietnam E-Commerce Association (VECOM) showed that online retail and marketing, tourism and payment saw the most impressive growth. Specifically, online retail revenue increased by 35 percent while shipping services revenue grew from 62 percent to 200 percent. 

The National Payment Corporation of Vietnam reported that online transactions using domestic cards in 2017 rose by nearly 50 percent in volume and 75 percent in value year-on-year. Several affiliated marketing companies posted 100-200 percent growth. 

According to the VECOM, the rate of room reservations via online travel agents increased by over 30 percent annually from 20 percent in 2016, pushing the online tourism earnings by more than 50 percent. 

Dang Thuy Ha, Director of Consumer Behaviour Research at Nielsen Vietnam, said nearly 4 billion people worldwide are forecast to subscribe to Internet by 2020. Trends such as Big data, virtual reality technology, sharing economy and cashless payment will be increasingly popular. Revenue from sharing economy is expected to near 300 billion USD by 2025. 

There are 59 million Internet subscribers in Vietnam now while 91 percent of the population used smart phones, nearly 80 percent of them live in rural areas. The Vietnamese spend 25 hours per week on average on the Internet. 

VECOM Chairman Nguyen Thanh Hung said Amazon will officially enter Vietnam this March, firstly launching a project with VECOM to support small and medium-sized enterprises. 

VECOM General Secretary Tran Trong Tuyen commented that Amazon’s penetration into Vietnam will facilitate the development of eco-system, sales solutions and logistics services, as well as bring goods to consumers at more competitive prices. 

Vietnam’s e-commerce market is forecast to see intense competition this year, he said.

Electronic firms advised to boost linkages in supply chain

Vietnam’s electronics enterprises should enhance linkages and increase productivity if they want to grow sustainably and integrate more deeply into the global supply chain, experts said at a seminar in Ho Chi Minh City on March 13.

Electronics is one of the key industries which are enjoying impressive growth in recent years and has become a spearhead export sector of Vietnam.

In the last decade, the number of electronic enterprises has risen four-fold to 1,021, and the number of workers increased to more than 500,000, Nguyen Phuong Dong, Deputy Director of the municipal Department of Industry and Trade, said at the seminar themed “Enhancing linkage opportunities in the electronic supply chain”.

However, the sector is still in the first phase of the electronic production chain, as domestic firms have focused only on assembling and after-sales services, Dong said.

Truong Thi Chi Binh, Vice Chairwoman and Secretary General of the Vietnam Association of Supporting Industries (VASI), said that Vietnamese electronic enterprises have yet to contribute properly to the country’s electronic product export value.

She pointed to the fact that the country’s supporting industry has yet to keep up with production demand, resulting in a low supply of domestically-produced components.

According to Binh, at present 77 percent of components are imported. Notably, up to 98.2 percent of basic electronic and electric components are bought from abroad.

To participate in the global supply chain, Vietnamese electronic enterprises must first meet safety demands and technical requirements and limit hazardous content in their products, she said.

VASI can actively support enterprises by providing consultancy, training, information, and databases and connecting them with international markets, Binh added.

Bui Thi Ninh, from the Vietnam Chamber of Commerce and Industry (VCCI)’s Branch in HCM City, stated the electronic industry has a very high growth rate and short life cycle for products, requires large investments, yields high profits but comes with fierce competition and high risks.

To facilitate the linkages between electronic firms, the VCCI put forward an initiative to establish an alliance of electronic firms to help them strengthen cooperation and solve challenges facing the sector, thus helping improve their brand names and competitiveness and minimise business risks.-

Dong Nai firms supported to tap opportunities from FTAs

Authorities of the southern province of Dong Nai are making efforts to help local firms take full advantage of free trade agreements (FTAs). 

The newly-signed Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will take effect from 2019.  It is hoped to create more opportunities for Vietnamese goods to access foreign markets. 

However, enterprises in Dong Nai, especially small and-medium-sized enterprises (SMEs) have yet to build suitable development strategies to tap advantages from globalisation. 

According to Deputy Director of the provincial Department of Planning and Investment Pham Viet Phuong, local authorities need to roll out a specific roadmap to give sector-based support, thus tapping opportunities from FTAs.

Phuong said most domestic enterprises operating in Dong Nai do not have specific knowledge about the CPTPP or other FTAs.

Local authorities established a steering committee for economic development, which will focus on studying the CPTPP, thus devising strategies for groups of enterprises and sectors. 

Meetings between experts and local enterprises will be arranged, helping firms get insights into trade barriers applied by the deal’s member countries, Phuong said. 

Experts said that after the CPTPP is signed, Vietnam’s agriculture is forecast to be put at the greatest disadvantage because of its weak competitiveness, while the support industry has the biggest change to participate in global value chains. 

If enterprises don’t have development strategies and fail to meet technical standards set by their partners, their products will not be competitive, they said.

Meeting tackles difficulties facing Japan’s food firms

The Japan External Trade Organisation (JETRO) held a meeting in Ho Chi Minh City on March 14 to help Japanese enterprises solve difficulties and challenges facing them in food import-export and business activities in Vietnam.

Nakagawa Motohisa from JETRO said Vietnam has made strides in reforming and reducing administrative procedures, creating favourable conditions for foreign investors.

For Japan’s food firms, meetings and dialogues with Vietnamese offices have helped deal with difficulties.

Specifically, the taking of samples of products weighing below 5kg, used in product introduction programmes or for research purpose, has halted, while examinations to grant food hygiene and safety-related certificates to traders and shop-assistants have been held more regularly, he stated.

However, Japanese firms held that there remain many things which need to be tackled, including product declaration procedures, specialised examination processes and plant and animal quarantine.

They said testing product compositions is essential to ensure food safety. However, Vietnamese offices should make a list of substances that are subject to tests.

Le Van Giang, deputy head of the Food Safety Agency under the Health Ministry, stated that per a decree that became effective on February 2, 2018, besides health protection products, food used in medicine and for children aged below 36 months, and food additives, enterprises can declare products on their websites and send a copy of the declaration to a management agency, and then sell these products.

Japanese enterprises also expressed their hope that Vietnam will consider reducing the frequency of and time needed for sample tests, which is currently seven days for meat and four days for vegetables and fruits.

Leaders from Vietnam’s ministries and sectors affirmed that Vietnam’s authorised offices will only strengthen inspections over imported goods when receiving warnings from export countries and international organisations.

Vietnam also committed to creating favourable conditions for Japanese enterprises to boost bilateral economic and trade ties.-

Thai Products’ Week underway in Hai Phong

The Thai Products’ Week is underway in the northern port city of Hai Phong from March 15-18, attracting 50 Vietnamese and Thai exhibitors. 

As part of a series of trade and investment promotion events in Cambodia, Laos, Myanmar and Vietnam (CLMV) and ASEAN member states, the week is being organised by the Thai Ministry of Commerce’s Department of International Trade Promotion, the Thai embassy in Hanoi’s Office of Commercial Affairs and the Vietnam National Trade Fair & Advertising Company. 

About 70 booths are showcasing food, beverages, fruit, household appliances, apparel, jewellery, electronics, health and beauty products, decorations and souvenirs from Thailand.

The event will also feature cooking demonstrations and music performances.  

The event has been held annually in Hai Phong since 2012.

Thailand is among top 10 largest foreign investors in Vietnam, pouring over 8.4 billion USD into nearly 500 projects mostly in northern and southern Vietnam.

At present, Thailand’s investment in Vietnam mainly focuses on manufacturing and processing (7.14 billion USD in 212 projects), infrastructure (397 million USD in seven projects) and agriculture (277 million USD in 30 projects).

Vietnamese agro-forestry-fishery products introduced in Egypt

Vietnamese agro-forestry-fishery and handicraft products have been introduced at the 51st Cairo International Fair that opened on March 14 in Egypt’s capital city, drawing visitors and businesses, especially those from the Middle East and North Africa.

Vietnamese Trade Counsellor in Egypt Pham The Cuong said that through the event, Vietnam hopes to promote investment opportunities in Vietnam to the business community in Egypt and the world.

Many foreign firms have expressed their interest in joining trade fairs in Vietnam this year such as the Vietnam Food 2018, Viet Fish and Viet Build, he said.

The fair, which will last until March 23, is being participated in by more than 40 countries around the globe.

According to Cuong, Egypt is now one of the 10 largest fabric importers of Vietnam. Two-way trade between the two countries exceeded 350 million USD in 2017, including Vietnam’s export turnover of 320 million USD. 

Vietnamese products shipped to Egypt included agro-forestry-fisheries products such as peppercorn, cashew and catfish.-

Int’l farm expos offer opportunities for Vietnam’s vegetables export

HortEx Vietnam 2018 - the first International Exhibition & Conference for Horticultural and Floricultural Production and Processing Technology in Vietnam, opened at the Saigon Exhibition and Convention Center (SECC), Ho Chi Minh City on March 14. 

The three-day event aims to promote dialogues between enterprises and policy makers, help participants meet potential customers and partners and explore the potential of Vietnam - an exciting growth market.

In his opening speech, Nguyen Hong Son Director of the Department of Crop Production under the Ministry of Agriculture and Rural Development, stressed that Vietnam has created crucial breakthroughs in sustainably developing its vegetable and fruit industry.

The country has increased investment in infrastructure for production and processing, and formed concentrated goods production areas, he noted, adding that key products for export and domestic consumption in connection with production areas have been linked. 

Vietnam has paid due attention to developing and applying scientific and technological achievements to improve productivity and product quality, especially techniques for crop management, and those to product high-quality flowers, he said. 

According to Son, links in agricultural production have been fostered among localities. The country has also built brands and geographical indication for key products such as dragon fruits, litchi, longan, mango and pomelo. Cultivation areas under VietGAP and GlobalGAP standards have been formed. And Vietnam’s exports have been expanded to choosy markets such the US, Japan, Australia and the European Union. 

Vietnam’s fruit and vegetable exports hit 3.51 billion USD in 2017, up 43 percent year-on-year, and a record trade surplus of 2 billion USD. 

However, Son also mentioned difficulties facing the sector, noting that the application of advanced farming techniques, investment for post-harvest preservation remains limited and the processing industry is developing slowly. 

The same day, the Agri Machinery & Tech Vietnam 2018 featuring technologies and machinery for agricultural production, and the ILDEX Vietnam 2018 displaying products related to livestock and animal feed industry also took place at the SECC. 

The events served as bridges connecting domestic and international enterprises operating in the two fields, allowing foreign firms to seek business and investment opportunities in Vietnam and adjacent countries.

Vietnam imports 2,300 tonnes of beef from US, Australia

Vietnam spent some 15 million USD importing nearly 2,300 tonnes of beef from Australia and the United States in the first two months of this year, according to the General Department of Customs.

Of this, some 1,349 tonnes of beef worth 8.9 million USD came from the United States, while 948 tonnes worth 6.6 million USD were imported from Australia.

Vietnam bought 930 tonnes of boneless beef and 18 tonnes of beef ribs from Australia and 834 tonnes of boneless beef and 65 tonnes of beef ribs from the United States.

In 2017, the country imported 210 tonnes of beef ribs and 3,901 tonnes of boneless beef from Australia, while it bought 6,085 tonnes of boneless beef and 353 tonnes of beef ribs from the United States, reported the Phap luat Thanh pho HCM (HCM City Law) newspaper.

The Ministry of Agriculture and Rural Development said in 2017, Vietnam imported over 6,500 tonnes of pork worth 11.07 million USD and more than 81,000 tonnes of poultry meat, valued at over 75.7 million USD.

Last year, the nation imported 262,321 units of live cattle and nearly 42,000 tonnes of beef worth 410 million USD.

HCM City promotes supply chain links     

Enhancing supply chain linkages is one of the key measures for the sustainable development of industry, including supporting industries, an expo heard in HCM City on Wednesday.

Nguyen Phuong Dong, deputy director of the city Department of Industry and Trade, told the “Sourcing fair for connecting supporting industry with buyers (SFS 2018)” that in implementing the Government and city’s policies on developing supporting industries, his department’s efforts include connecting components suppliers with product manufacturers as a long-term strategy.

The two-day SFS 2018, which ended on Wednesday, sought to “enhance direct connections between FDI and other manufacturing firms and Vietnamese parts suppliers.”

This is expected to create opportunities for the parts suppliers to gradually join the global supply chain, Dong said.

On the second day 17 local and FDI firms in the electronics, automobile and mechanical engineering sectors displayed more than 250 components and parts clusters used in producing telephones, photocopiers, elevators, trucks, buses, special purpose vehicles, and electrical appliances for which they were looking for suppliers.

More than 80 Vietnamese parts manufacturers had registered to take part and more than 230 business-to-business meetings were arranged yesterday between part suppliers and buyers, Dong said.

Pham Tuan Anh, deputy director of the Ministry of Industry and Trade’s industrial department, hailed the efforts made by the city to boost supporting industries.

“The ministry would always support the city’s programmes to promote supporting industries,” he said.

Speaking to Viet Nam News, Nguyen Quoc Anh, chairman of the Rubber - Plastic Manufacturers Association, said some local firms have invested in technology to produce high-quality products.

“But because they are still new they have not yet found businesses to supply to. On the other hand, producers of downstream products have not yet heard about them.”

Organised by the city Department of Industry and Trade, the Saigon Hi-Tech Park and the HCM City Export Processing and Industrial Zones Authority, the event had held two seminars on the Supporting Industry in Industry 4.0 and Enhancing Linkage Opportunities in the Electronic Supply Chain on March 13.

HCM City hosts 3 int’l farm expos     

The first International Exhibition & Conference for Horticultural and Floricultural Production and Processing Technology (Hortex Vietnam) and the first International Trade Show on Agricultural Machinery, Equipment and Technologies (Agri Machinery & Tech Vietnam) opened on March 14 at the Saigon Exhibition and Convention Centre.

The two exhibitions have attracted more than 100 exhibitors from 20 countries and territories showcasing a wide range of agricultural machinery and equipment; technologies for vegetable, flower and fruits industries; equipment for cultivation, post-harvest and processing of fresh vegetables; and flowers, ornamental plants, plant nutrition, and garden and landscape architecture, among others.

Organised by the Minh Vi Exhibition and Advertisement Service Co., Ltd and the Netherlands’ Nova Exhibitions BV, the exhibitions will include professional seminars and a business-to-business matching programme.

Speaking at the opening ceremony, Nguyen Hong Son, director of the Crop Production Department, said the country’s fruits and vegetables exports enjoyed an average growth rate of 32.7 per cent in the 2011-16 period to reach US$3.55 billion last year.

Viet Nam’s horticultural and floricultural sectors have potential to develop further, but they have encountered challenges due to the limitation in use of advanced production and post-harvest technologies.

The expos provide an ideal platform for Vietnamese farmers and businesses in the horticultural and floricultural sector to approach new production technologies, especially in processing, Son said.

In addition, domestic and international firms can exchange information and explore business opportunities as well as expand markets to enable Viet Nam to become one of the world’s largest export countries of flowers, fruits and vegetables, he said.

Another exhibition -- ILDEX Vietnam -- an International Livestock, Dairy, Meat Processing and Aquaculture Exposition, also opened in HCM City yesterday, featuring the latest machinery, technologies and business solutions for livestock breeding, dairy and aquaculture industries, feed and feed ingredients, animal health and pharmaceutical products, and others.

The expo features nearly 250 exhibitors from 30 countries and territories, with six national pavilions set up by France, the US, South Korea, the Netherlands, China, and the Czech Republic.

Nino Gruettke, managing director of VNU Exhibitions Asia Pacific Co., Ltd, one of the event’s organisers, said this year’s event is the largest ever and nearly 50 per cent bigger than the previous one held in 2016.

There has been a strong increase in the number of foreign exhibitors, accounting for 72 per cent of the total displaying scale.

The increased participation by foreign exhibitors shows their interest in the country’s livestock industry, he said.

Hoang Thanh Van, director general of the Livestock Production Department, said: “Over the past decade, ILDEX Vietnam has greatly contributed to the development of the livestock and aquaculture industries in Viet Nam and become an important platform for promoting trade and transferring technology and knowledge.”

The three exhibitions will be held at the Saigon Exhibition and Convention Centre in District 7 until March 16.

VIB targets 43% earnings growth in 2018     

Vietnam International Bank (VIB) has targeted a pre-tax profit of more than VND2 trillion (US$88 million) in 2018, surging 43 per cent against last year’s figure.

VIB expects its total assets to reach VND150.23 trillion, up 22 per cent year-on-year, and deposits to amount to VND100 trillion, growing by 22 per cent. The bank expects to maintain bad debts at below 3 per cent.

VIB will also propose a plan to increase its charter capital to maximum VND8.1 trillion at the forthcoming Annual General Meeting (AGM) of Shareholders on March 29 in Ha Noi.

The additional capital will be raised from offering and issuing new shares to investors as well as issuing bonus shares using share premium reserves, investment and development reserves, capital reserves and retained earnings, the bank said in a statement.

The capital hike is aimed to provide credit to corporate and individual customers with stable financial status and potential development and to priority customers in the prioritised poduction and business sectors as instructed by the Government, the bank said.

The capital source is also planned to invest in improving facilities, technology, products and risk management capacity, and upgrading the branch network to enhance the competitiveness of VIB and expand the presence of the bank in provinces and cities across the country, the bank added.

Last year saw the strongest and highest growth of VIB in the past five years, with all business units exceeding its sales and profit plan.

The bank recorded a pre-tax profit of over VND1.4 trillion, double the previous year and reaching 187 per cent of the plan approved in the last AGM.

Total assets reached VND123.2 trillion, surpassing the plan, while credit growth reached 26 per cent and bad debts were maintained at below 3 per cent.

VIB continued to be recognised by international institutions and State management agencies as one of the best banks in terms of quality and transparency. VIB was the first bank in Viet Nam to win the “Leading Vietnam Bank for Trade Finance for SMEs” award granted by Asian Development Bank.

It also received “Viet Nam’s Outstanding Innovative Banking Service Award” in 2017 by IDG for MyVIB Social Keyboard, the “Most Innovative Banking Brand in Vietnam 2017” award by the Global Brands magazine from the United Kingdom and the “Best Customer Service Bank Viet Nam 2017” award by Global Banking & Finance Review. 

Japanese firm takes acquisition route to VN beauty market     

Japan-based Takara Belmont said it has acquired Vietnamese producer of hair care products, Ngu A Chau, for VND181 billion (US$8 million).

Takara Belmont is the world leader in salon and spa design and salon and dental equipment manufacture, while Ngu A Chau has a plant and a large distribution network for its KANAC and other brands of hair care, hand wash and other products.

Takara Belmont came to Viet Nam in 2013 and set up a medical equipment production plant at the Long Duc Industrial Park in the southern province of Long An.

“By acquiring Ngu A Chau Ltd Co, Takara Belmont enters the beauty market in Viet Nam,” Hidetaka Yoshikawa, the latter’s president and CEO, said. 

Vietnamese fruit and veg entering strict markets

Fruit and vegetables are among the agricultural products seeing the highest export growth since the beginning of the year and they are catching interest from more choosy markets in the world.

vietnamese fruit and veg entering strict markets hinh 0 Fruit and vegetable exports for the traditional Lunar New Year (Tet) holiday in February still rose to US$220 million, up 18% on last February, elevating the export value for the first two months to US$604 million, up 43.4% against the same period last year.

In addition to traditional markets, Vietnamese fruit and vegetables are drawing interest from more demanding markets. For instance, after the first consignment of star-apples to the US in December 2017, a further 134 shipments weighing around 230 tons have been shipped to the profitable market.

The US also opened the door to Vietnamese mangoes in late 2017 with the first mangoes expected to enter the market in April. Fresh longans are likely to be granted an import licence for Australia in early 2019.

It is a good sign that domestic products are gaining a foothold in more stringent markets which require primary quality and the profile of products.

Agricultural experts say it is essential for businesses to carefully study customs, market tastes, build brands, and supply high added value products with traceable origins.

HCMC intensifies connecting FDI with domestic firms

Ho Chi Minh City Department of Industry and Trade yesterday worked with relevant agencies to organize an event to seek domestic support industry suppliers and connect domestic with foreign direct investment (FDI) firms with the attendance of over 100 companies.

Analyzing support industry development opportunities, Ms. Nguyen Thi Xuan Thuy from Strategy Study Institute under the Research Institute for Industrial Strategies and Policies said that the market capacity of the support industry in Vietnam is very large. Two industries forecast to need lot of support products in the upcoming time are auto manufacturing and electricity-electronics.

Vietnam now has over 20 auto assembly firms, 84 level 1 suppliers and 145 level 2 and 3 suppliers. Meantime, Thailand has 16 auto assembly companies and as many as 690 level 1 suppliers and 1,700 level 2 and 3 suppliers. The number of support industry suppliers in Vietnam is few compared to demand.

Statistics since 2005 until now show that support product suppliers have increased from 256 to over 1,000 companies in electricity and electronics field, estimated to be a key industry gaining some achievements in FDI attraction and exports. Still the industry has in fact stopped at the early stage of the supply chain to make electronic products.

Sharing the same view, Ms. Truong Thi Chi Binh, secretary general of Supporting Industries Business Association, said that surveys indicate that over 90 percent of support industry components in plastics, rubber, electricity and electronics industries are imported. The import ratio is up to 94 percent to electricity and electronics components.

Mr. Nguyen Duong Hieu, director general of Lidovit Trading and Industrial Joint Stock Company, said that domestic firms have yet to meet support product supplier requirements in technology equipment, management and human resource.

Meantime, foreign firms have not connected with domestic companies and used products of suppliers in their supply chains because of stable quality and competitive prices.

Domestic firms are said to improve production capacity to attend global supply chain and increase localization rate.

A representative of the Ministry of Industry and Trade said that domestic firms need to seek foreign markets. In fact, domestic support products might not meet local market requirements but might attend other segments in the world market.

In addition, businesses should standardize requirements in chemical content, technical standards and product safety and quality, environment and energy management systems. They should have long term strategy to develop and take the initiative in connecting with FDI firms.

Mr. Nguyen Phuong Dong, deputy director of HCMC Department of Industry and Trade, said that the agency has built a database on support industry firms and collect information of over 500 businesses.

In the upcoming time, it will work with relevant sides to develop the database to create opportunities for domestic firms to attend global support product supply chains. He suggested businesses to be more proactive to supply their information for authorized agencies.

Tuan Chau group suggests building mega resort project in Vung Tau city

Tuan Chau group has suggested building an enormous resort complex known as Vung Tau Marina City with the scale for 7,500 residents and 12,000 tourists a day, announced the People’s Committee of Ba Ria Vung Tau Province.

Vung Tau Marina City will be constructed in a coastal area of 345 hectares from Bai Truoc to Bai Dau beaches. In that area, investors intend to erect a public bathing zone and international port to receive tourists.

The project consists of a tourism complex and amusement park. The tourism complex will comprise high-class trade center, fancy restaurant, luxury apartments and sea villas. The amusement park will include real scenery performance, dolphin- seal- lion sea performances, music- movie- fashion center, firework performance and water music show.

Mr. Nguyen Van Trinh, chairman of the provincial People’s Committee supported and appreciated the project. He proposed Tuan Chau group to receive opinions from agencies to improve the project, adjust project area and submit to authorized agencies.

According to the People’s Committee of Ba Ria Vung Tau province, the purpose of the project is to establish a port urban area, multifunctional and modern tourism in harmony with nature in order to meet demand from residents, domestic and foreign tourists.

The modern system of yacht port will connect with domestic and overseas ports. At present, Tuan Chau group has to fulfill procedures for investment approval from local authorities. If the project is proceeded as plan, it will be one of the biggest resort real estate projects in Vung Tau city.

Ba Ria Vung Tau has the large potential to develop marine economy, locating in the southern key economic zone with population accounting for 17 percent of Vietnam, growth rate 1.5 times the country. The zone contributes 40 percent of the country’s export turnover and 60 percent of national budget, attracts 60 percent of overseas projects and 50 percent of foreign investment in Vietnam.

According to economic experts, that is the only zone that has adequate facilities and advantages to develop high technology, computers and electronics industry, oil and gas industry, tourism service and banking and financial service.

It is home to several large infrastructure projects such as Ho Chi Minh- Trung Luong- Can Tho, Ho Chi Minh- Long Thanh- Dau Giay- Lien Khuong, Bien Hoa- Vung Tau expressways, Tan Son Nhat Airport, Long Thanh Airport project and Ho Chi Minh- Vung Tau rail way.

Furthermore, numerous modern urban areas with grand scale have been built such as Binh Duong complex industry, Northwest HCMC, Thu Thiem new urban areas with the scale of 4,000 hectares, 9,000 hectares and 700 hectares respectively. More new cities are being arranged and constructed such as Nhon Trach, Long Thanh, Binh Duong and Phu My.

Credit growth slow but sustainable

Though credit growth this year is below the same period last year, it is more sustainable, data of the National Financial Supervisory Commission showed.

A Thoi Bao Ngan Hang report quoted the commission as saying that credit, including lending and corporate bond purchases, picked up 0.9% in January and 1% last month against late last year, whereas the rate recorded in the same period of 2017 and 2016 was 1.6% and 0.8%.

Experts attributed the slower growth to slackened credit needs before and during the Lunar New Year holiday in February.

However, there has been a considerable improvement in credit quality, with medium and long-term credit falling to 53% compared to 55.2% in January 2017. Meanwhile, short-term credit accounts for 47%.

In addition, foreign currency credit has dropped to 8% from 8.4% in January 2017. Credit has been mainly funneled into production and priority areas as instructed by the Government and the central bank.

Latest data of the central bank’s credit department shows outstanding loans for agriculture and rural development were put at over VND1.31 trillion by December 31, 2017, up 25.5% year-on-year. They picked up 1.5% at the end of last January against end-2017.

Industry and construction saw outstanding loans soaring 22.38% year-on-year to over VND2.09 trillion at the end of last year, accounting for 32.15% of total outstanding loans in the economy. Outstanding loans of these areas edged up by 1.86% in late January.

As of January, combined outstanding loans in credit programs reached about VND171 trillion, down by VND791 billion against 2017.

Capital mobilization rose by 0.5% in January, down from 0.8% in January 2017 and 1.3% in January 2016, according to the commission.

Vietnam dong mobilization inched up 0.6% and made up 90.3% of total capital mobilization, whereas mobilization in foreign currency declined by 0.3% and accounted for 9.7%.

Liquidity in the banking system has been more abundant, supported by the central bank’s purchases of a large amount of foreign currency and supplies of some VND70 trillion in the first two months of the year.

FLC insists on twin-tower project in Halong

Leaders of property developer FLC at a meeting with the Party Committee of Quang Ninh Province on Monday again sought approval for a twin-tower project in Halong City, having earlier had the project turned down, Lao Dong Online reports.

Board chairman of FLC Group Trinh Van Quyet told local leaders that the twin towers would serve not only as a commercial project but also a new architectural symbol for Halong City. He expected that Quang Ninh would endorse the project and allocate land at a suitable site as soon as possible for the group to conduct its feasibility study and investment.

Previously, FLC sought the nod from the provincial government to construct the twin towers in the premises of the existing headquarters of the People’s Committee of Halong City but the application was rejected.

At the meeting, Secretary of Quang Ninh Province’s Party Committee Nguyen Van Doc assigned Halong City authorities to find a suitable location for the twin-tower project.

Concurrently, Doc asked FLC to speed up legal procedures to commence construction of some projects already approved for the group, such as Cao Xanh budget apartment project in Ha Khanh and Nui Ham urban area in Halong, tourist destinations on Ngoc Vung Island and Van Canh Island in Van Don District, and a tourist hydrofoil station in Van Don in April 2018. They were also encouraged to invest in other districts and towns in the province.

Currently, FLC is the owner of some luxury projects in Halong such as Halong Star golf course, and the complex of FLC Halong Villa and Resort. They are under progress and some of their components have been finished and ready for operation.

Vinh Long pledges support for investors

The Mekong Delta province of Vinh Long will offer its strong support for investors if they set up shop there.

At a press conference on March 12 on an upcoming investment promotion conference, Truong Dang Vinh Phuc, director of the provincial Department of Planning and Investment, said the local government would provide policy incentives for investors.

The People’s Council of the province has issued a resolution on assistance for investors, Phuc said. In particular, the province will help them with financing, site clearance, wastewater treatment, and infrastructure development at industrial parks and clusters.

The province’s vice chairman Le Quang Trung asked local departments and agencies to create favorable conditions for investors by reforming their administrative procedures. Investors need transparent procedures, he noted.

Phuc of the Department of Planning and Investment said the investment promotion conference is slated to take place on March 27. In-principle approvals and investment certificates will be presented to 15 projects and 10 memorandums of understanding will be signed.

These projects are mainly in the agriculture, retail, industry, healthcare, and renewable energy sectors with total capital of over VND12.4 trillion (US$546 million).

Ministry aims high for rice export

The Ministry of Agriculture and Rural Development has set a high rice export target of 6.5 million tons for this year, with high quality rice accounting for a majority, the Government news website reports.

This number shows an increase of 0.8 million tons compared to a year earlier. Vietnam shipped abroad 4.8 million tons of rice in 2016 worth some US$2.1 billion and 5.8 million tons worth US$2.6 billion in 2017.

Nguyen Quoc Toan, deputy director general of the Agro-Processing and Market Development Authority under the agriculture ministry, said high quality rice would account for the bulk of this year’s shipments, while the average-quality grain processed from IR50404 rice strain will be less than 20%.

Rice has been Vietnam’s agricultural export mainstay, and with the good momentum in the past two months, Vietnam’s rice export target is achievable, Toan said.

He however noted that Vietnam still faces a big challenge in the global rice trade. Take Thailand as an example, the regional rival boasts stronger advantages over Vietnam in terms of product diversity, quality and packaging, he said.

The same thought was shared by Deputy Minister of Agriculture and Rural Development Ha Cong Tuan, who stressed at a recent meeting that in the long run, Vietnam needs to further improve the quality of rice for export, alongside efforts to enhance the local food staple brand via effective promotion in order that local rice can have better prices.

The rice market in the Mekong Delta in February was more vibrant than a month earlier with prices increasingly steadily, the ministry said. Furthermore, winter-spring harvest is coming near in some areas, ensuring ample supply for traders who need to stock up to fulfill the orders signed earlier with foreign buyers.

U.S. about to inspect Vietnam catfish control program

The U.S. Food Safety and Inspection Service (FSIS) will conduct an on-site inspection of Vietnamese catfish control in the next few months, having already reviewed Vietnam’s documents in response to the self-reporting tool (SRT), the Government news website reports.

According to the National Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD) under the Ministry of Agriculture and Rural Development, relevant agencies in Vietnam have handed over some 2,000 pages of documents and information on SRT to FSIS.

In early March, NAFIQAD obtained an official letter from FSIS via the U.S. Embassy stating that after reviewing all relevant documents on SRT, it found that Vietnam’s catfish control system is compatible to that of the U.S.

However, FSIS said it would launch an on-site inspection of Vietnamese catfish control in the coming time to ascertain that relevant issues, and a date for such an inspection would be announced later.

When the inspection takes place is unknown, but NAFIQAD suggests that producers of catfish of the Siluriformes order exported to the United States continue to follow regulations of the U.S. and guidelines of NAFIQAD.

Enterprises are also advised to consult NAFIQAD on how to work with the U.S. inspection team.

Vietnam has first digital asset trading platform

VNDC, Vietnam’s first digital asset trading platform, was launched last week, facilitating connection, transaction and exchange of digital currencies.

The platform serves as a financial transaction platform whose activities include giving loans, calling for community loans, and issuing gift vouchers.

Transactions on the platform which are all involved in online contracts use “VNDC” as an internal digital currency.

Digital Asset Management Holding, the operator of VNDC, said in a white paper that each VNDC unit which is backed by a Vietnamese dong held in the reserves of the company’s partner banks.

VNDC owners may use their contracts to exchange or transfer their digital currency units and other digital assets on the trading platform trustdex.io, a convenient place to buy and sell cryptocurrencies.

Besides, they have the right to transfer their contracts to TRUSTPay JSC at a fixed exchange rate with a Vietnamese dong equaling to a VNDC unit.

Platform users are able to digitalize their assets, including money, gold, real estate, and corporate assets through blockchain technology, the world’s leading software platform for digital assets.

Earlier, HVA Investment JSC approved a board resolution to acquire all stakes of TRUSTcard JSC, a branch of TRUSTPay JSC. HVA and its strategic partner TRUSTPay that are also co-founders of the VNDC platform will work together to set up the former’s Fintech projects.