Thua Thien-Hue attracts US$87mn in 5 months     

Thua Thien-Hue province attracted 11 projects worth nearly VND2 trillion (US$87.1 million) in the first five months of this year.

This excludes the Laguna Lang Co project invested by Singapore’s Banyan Tree Group.

So far, the province has attracted 151 investment projects, with VND72.3 trillion of registered capital, including 36 foreign-invested projects with an investment of VND31.2 trillion.

Notably, large investment projects have been granted licences and are being implemented. The Prime Minister has approved the expansion of the Laguna Lang Co project, with a total investment capital of up to $2 billion, along with investment for a casino, as well as the solar power plant of Doan Son Thuy Investment Joint Stock Company, with an investment capital of VND1.15 trillion.

Located in the Chan May – Lang Co Economic Zone, the first phase of the Laguna Lang Co project includes Angsana Lang Co Hotel with 229 rooms and Banyan Tree Residences with 57 villas and an 18-hole golf course, with an initial capital of nearly $300 million.

According to the proposal of the investor, the casino occupies an area of ​​2.64ha with an investment capital of $250 million.

The Banyan Tree Group’s additional investment (compared to its existing hotel portfolio), includes increasing the number of hotel rooms from 2,180 to 3,178. Currently, the investor is preparing to open the casino entertainment complex to foreigners by 2021. The investor also expects to diversify the casino business in three phases, including the first phase with 500 game machines and 50 poker tables.

Tourism has always been a strength of the province and is also one of the most attractive fields of investment today. Other foreign investment projects in Thua Thien-Hue focus on cement, beer, mining, transportation, garments, hotels, restaurants and resorts. Few projects focus on agro-forestry production and agro-forestry-fishery processing.

Currently, the province is trying to attract investment by creating a favourable investment climate to mobilise the highest social resources, prioritising resources for investment in infrastructure, production and economic development, ensuring high economic growth associated with environmental protection and social security and concentrating on overcoming the consequences of marine environmental incidents.

In the short term, Thua Thien-Hue province plans to improve the quality of business associations. The region is investing more than VND2 trillion to implement the key programme of economic and technical infrastructure as well as industrial development in 2018, aiming to further improve the infrastructure of the entire province as well as service capacity while supporting production and business activities.

Steel firms urged to ensure material transparency     

Local steel makers should follow laws and requirements on origin when exporting their products to the US.

That’s the message from Ho Nghia Dung, chairman of Viet Nam Steel Association (VSA) after the US Department of Commerce (DoC) decided to levy import tax on steel produced in Viet Nam using Chinese-origin substrate.

The US Customs and Border Protection (CBP) will continue to collect anti-dumping (AD) and countervailing duty (CVD) cash deposits on imports of corrosion-resistant steel (CORE) produced in Viet Nam using Chinese-origin substrate at the rate of 199.43 per cent and 39.05 per cent, respectively.

CBP will also collect AD and CVD cash deposits on imports of cold-rolled steel produced in Viet Nam using Chinese-origin substrate at the rate of 199.76 per cent and 256.44 per cent, respectively. Dung said the Viet Nam’s steel exports to the US would be sharply reduced with the decision.

Statistics showed that the Viet Nam’s steel exports to the US were reduced from more than 900,000 tonnes in 2016 to 500,000 tonnes in 2017.

After the DoC’s decision, VSA’s members have been quick to seek material for steel production from other countries or local ones instead of importing from China.

He said a big amount of hot rolled steel – the material for colour coated steel and galvanised steel production - was provided into the market after Formosa came into operation.

The amount of imported steel from China in the first quarter of the year was 1.1 million tonnes, half as much from the same period last year and a 29 per cent decrease in term of value.

The US, however, is still the third largest steel importer of Viet Nam despite of the tax levy. In the first three months of the year, the amount of steel exports to the US reached 217,000 tonnes, accounting for 15 per cent of Viet Nam’s total steel exports.

The chairman said the country’s steel sector has seen strong growth of construction steel and flat steel. Viet Nam has been able to produce construction steel products, from ore, steel scrap to hot rolled steel. Previously, Viet Nam had to import hot rolled steel from foreign countries including China, South Korea and Japan.

VSA said they co-operated with ministries, sector and businesses to clarify two issues relating to DoC’s investigation on steel produced in Viet Nam using Chinese-origin substrate.

They would clarify that not all Vietnamese steel originates from China. In addition, Viet Nam has been investing in large and modern scales of final production stages to produce galvanised and cold rolled steel.

The latest information from the Vietnamese Ministry of Industry and Trade (MoIT) revealed that the DoC would remove the tax levy on Vietnamese steel exporters if they prove that their products were not used material from China.

The ministry would continue to co-operate with relevant steel producers to resolve the requirements from the DoC.

Chu Thang Trung, deputy director of the ministry’s Department of Trade Defence, said they suggested producers study and meet conditions from the DoC to be exempted from the tax levy.

The ministry has closely co-operated with VSA and businesses to follow the case from the initiating of the investigation in June 2016.

MoIT asked the DoC to implement investigations objectively and in line with WTO’s regulations as well as the US’s norms. They also asked the DoC not to impose the tax on Vietnamese steel exporters.

VSA and Vietnamese steel producers have also closely co-operated with the US to clarify the material origin for steel production in Viet Nam.

Yeah1 to sell 7.8 million shares on HSX

DFJ VinaCapital-backed entertainment group Yeah1 will offer 7.8 million shares for both foreign and local firms before trading 27.4 million shares on the Ho Chi Minh City Stock Exchange (HSX).

According to the plan, Yeah1 will start to put these shares on sale with the expectation to acquire $100 million in proceeds at the share price of VND300,000 ($13.17). To date, numerous foreign firms from the UK, Singapore, Japan, and Thailand registered to buy 70 per cent of the offered shares. Some of the largest names lining up for a stake are Capital Asset Management, Probus Group, and TT International Limited, among others.

Yeah1 will spend the acquired money on expanding its operations via investments, M&A deals, as well as partnerships.

Recently, HSX released that it had received Yeah1’s application to trade 27.37 million shares, equivalent to VND274 billion ($12 million) of charter capital, making it the first local entertainment company to list on the stock market. The first transaction session is expected to be in June.

The entertainment group previously approved plans to raise capital from VND238 billion ($10.4 million) to VND312.8 billion ($13.7 million) and raise the foreign ownership ratio to 100 per cent after listing the shares on the stock exchange.

As of the end of 2017, the group was owned by Nguyen Anh Nhuong, chairman of the Board of Directors (41.4 per cent), DFJ VinaCapital (35.71 per cent), Ancla Assets Ltd. (12.49 per cent), and the group’s CEO Dao Phuc Tri (4.37 per cent).

Established in September 2006, Yeah1 specialises in entertainment for young people in Vietnam and runs a series of entertainment channels including Yeah1TV, Yeah1family, Imovietv, and SCTV2, with nine subsidiaries and four indirect subsidiaries, including Yeah1 Vietnam Co., Netlink Online Corporation, and TNT Media Advertising. In 2008, DFJ VinaCapital, a venture fund of Vietnam’s leading asset manager VinaCapital invested $1.4 million in Yeah1.

Yeah1 has partner relations with numerous giants, including Samsung, Unilever, Coca-Cola, Heineken, and Viettel. In addition, the group expanded its operations to Thailand, Indonesia, and the Philippines.

Vinamilk to spend $127m to advance 2018 dividend

Vinamilk will pay the interim dividend for 2018 and issue additional shares to increase the share-capital in the third quarter.

On September 6, the dairy company will finalise the list of shareholders that will receive the interim dividend for 2018 at the ratio of 20 per cent (equivalent to VND2,000 per share-holding).

The dividend will be paid in cash on September 26, which means Vinamilk will spend some VND2.9 trillion (US$127.2 million) for this payout.

Earlier, in its annual shareholders’ meeting on March 31, Vinamilk set a target of VND55.5 trillion in revenue and VND10.75 trillion in net profit in 2018.

The 2018 dividend ratio is set at least 50 per cent of the after-tax profit. The first payment will likely happen in the third quarter of this year, while the second disbursement will be made in May or June 2019.

In its filing to the State Securities Commission and HCM Stock Exchange, Vinamilk also announced the plan to issue 290 million additional shares to the existing shareholders at the par value of VND10,000 each.

The issuing ratio is 5:1, which means that for every five ordinary shares held at the record date, which will be September 6, shareholders will receive one bonus share.

The Vinamilk shares have been seeing a downtrend since last week with a total loss of 7.4 per cent during May 7-15, being traded at around VND176,000 ($7.72) per share.

The dairy firm reported a fall of 9 per cent in its consolidated net profit in the first quarter of this year, earning 2.68 trillion ($118 million) by the end of March.

Made-in-Vietnam woodwork conquering international premium markets

Vietnamese woodwork is making a mark worldwide, from furniture in five star resorts to first class flights.

With high quality and reasonable price, made-in-Vietnam woodwork has made its presence felt in luxury interior design projects worldwide. 

Last year, a team of 70 workers from Vietnam of design and construction company AA Corp were sent to the Caribbean to construct the interior of the luxury Park Hyatt St. Kitts resort.

The US$16 million project included components on interior design, millwork and loose furniture. 

Dubai based airline Emirates, the largest in the Middle East, also used Vietnamese-made woodwork for the interior of their first class cabins. 

“The US, Japan, Dubai, Singapore, Myanmar and Laos all have premium constructions with signature material from Vietnam,” said Nguyen Quoc Khanh, chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA). 

Premium hotel and resort corporations in the world such as Starwood, Accor, IHG, Marriott, Hilton and Fairmont all want to select Vietnamese businesses to design and construct the interior of their buildings, Khanh said, adding that these companies like made-in-Vietnam wood products because of their high quality and reasonable prices.  

With world class craftsmanship, Vietnamese wood businesses can now offer complete five-star woodwork instead of just selling individual products, said Nguyen Chanh Phuong, CEO of Danh Moc Limited Company, which designs kitchens.  

Approaching the high-end segment of the market is what local businesses have been aiming for for years, Phuong said, adding that with improved customer service and advertising, Vietnam can penetrate even further into the premium market.

Vietnamese wood companies also need to thrive to achieve better product value instead of running after revenue goals and export targets, said Tran Viet Tien, CEO of Lavanto Home Décor, which manufactures a variety of home products. 

Businesses also need to invest more in automation, human resources and design to reach new heights, Tien said. 

Vietnam is currently world’s top five exporter of wood, behind China, Germany, Italy and Poland.

Last year, Vietnam exported US$8 billion worth of wood and forest products and the country aims to reach a US$9 billion target this year.

Vietnam’s veggie exports stage strong growth

Vietnam’s vegetable and fruit exports in the first four months of the year rose a staggering 29% year-on-year to some US$1.3 billion, with China-bound shipments generating nearly US$1 billion, customs data shows.

Last month alone saw veggie export revenue hitting US349.6 million, up 8.7% month-on-month, according to data of the General Department of Vietnam Customs.

Exports of vegetables and fruits to neighboring China fetched US$988.8 million in the four months, up 30.1% year-on-year, which accounted for 75% of Vietnam’s total export revenue in the sector. Last year’s corresponding proportion was 74.3%.

The customs said that besides China, 14 other importers of Vietnamese vegetables and fruits have also bought much more than in the same period last year.

The United States, Vietnam’s second biggest importer of vegetables, spent over US$38.8 million importing such farm produce in the past four months, a year-on-year surge of 12.8%.

Meanwhile, Japan spent US$36.6 million on Vietnamese vegetables and fruits, up by 16.4% year-on-year, followed by South Korea and Thailand with US$34.78 million and US$22.65 million respectively, soaring 13.5% and 28.8%.

Notably, scores of new buyers have spent much more money on Vietnamese veggies, including Australia with US$9 million, up 35.1%, France with US$8 million, up a whopping 42.9%, and Canada US$7 million, up 26.8%.

Data of the department also indicates that only Russia and Taiwan have recently reduced veggie imports from Vietnam.

Analysts attributed Vietnam’s strong surge in veggies export revenue to high quality and safe products and technical barriers being removed recently to create favorable conditions for other farm produce like dragon fruit, rambutan, longan and lychee to enter numerous choosy markets such as Japan, South Korea and New Zealand.

Sixth Vietnam Startup Wheel launched for entrepreneurs at all ages

The sixth Vietnam Startup Wheel in 2018 was launched on May 15 nationwide for all individuals, groups and startup business founders residing in Vietnam regardless of their age.

According to the organising board, contestants can submit their startup ideas, products, services or technologies to the contest from now to the end of May. The final and awards ceremony will be held in August this year.

Truong Ly Hoang Phi, Director of the Ho Chi Minh City Business Startup Support Centre said that with the expansion of participants to all ages and all those residing in Vietnam instead of from 18-35 years old and Vietnamese citizens as previous, the contest aims to create an international environment for studying with the involvement of startups from all countries, thus helping domestic startups challenge themselves with competition from domestic and foreign rivals.

Phi said that in the past, the annual contest has been the largest playground for Vietnam’s startup community, while helping them conquer important targets in their development strategy, introduce their products to investors and commercialise their products. 

The contest aims to connect the startup ecosystem in the country, nurture startups and encourage the support of partners for young enterprises.

Meanwhile, Ngo Minh Hai, Deputy Secretary of the Ho Chi Minh Communist Youth Union’s municipal chapter and Vice President of the Vietnam Youth Federation of Ho Chi Minh City said one of the objectives of the contest is spreading the startup movement among youngsters.

Founded by Ho Chi Minh City Business Startup Support Centre and Young Businesspeople Association under the Vietnam Youth Federation of Ho Chi Minh City, Startup Wheel was first launched in 2013 and has become one of the biggest events for the startup community.

Last year, the contest drew more than 30,000 participants with 767 ideas and projects.

Deputy PM orders Sabeco’s back tax review

Deputy Prime Minister Vuong Dinh Hue has told the State Audit Office of Vietnam (SAV) to review its conclusions on back tax and fines imposed on Saigon Beer, Alcohol and Beverage Corporation (Sabeco), the website of Phap Luat newspaper reports.

The order comes after the Deputy PM’s meeting on May 2 with representatives of SAV, the Ministries of Industry-Trade, Finance and Justice, the Government Inspectorate, the Government Office, Sabeco and Hanoi Alcohol Beer and Beverage Corporation (Habeco) over special consumption tax debt owed by Sabeco and Habeco.

Hue requested SAV to review its conclusions on special consumption tax debt, fines on tax payment delays and violations of tax laws in Sabeco and Habeco, and the rights and duties of their shareholders. SAV will later report results to the PM and relevant ministries, agencies and enterprises.

The Ministries of Finance and Justice and the Government Inspectorate were told to swiftly comment on SAV’s conclusions. The Ministry of Industry and Trade was tasked with making a report on their comments and send it to the PM prior to May 10.

SAV earlier sent results of its audits of Sabeco’s financial reports and activities related to the management and use of State capital and assets in 2016. The results showed Sabeco had made more than VND2.9 trillion (US$127.3 million) in profit by 2016.

At the time, the Government held an 89.59% stake in Sabeco, so SAV proposed collecting VND2.5 trillion in undistributed profit of the Government as a majority shareholder of the corporation.

According to a representative of the Finance and Business Renovation Department under the Ministry of Industry and Trade, the retained profit would be used to fulfill special consumption tax obligations and administrative penalties concerning tax obligations.

Sabeco had written to the HCMC Tax Department stating that it paid VND4.7 trillion in special consumption tax to the department in 2016 under the department’s direction.

Sabeco has also agreed to pay over VND2.79 trillion for the State budget as requested by SAV and written to the HCMC Tax Department seeking advice on how to proceed with the payment.

The Ministry of Industry and Trade is instructing Sabeco to pay the tax in line with the law and SAV’s requirements.

The Vietnam Association of Financial Investors (VAFI) has warned that Sabeco’s payment of VND2.5 trillion for the State budget might cause serious consequences. VAFI has written to Deputy PM Hue, the Ministry of Finance and SAV as saying that based on the 2014 Enterprise Law, the firm could not pay dividends to shareholders without its board giving prior approval.

If Sabeco pays VND2.5 trillion for the State budget, Sabeco board members and senior executives of the Ministry of Industry and Trade involved in the problem would violate the Enterprise Law and compensate for losses of thousands of Sabeco’s investors.

Auto sales exceed 80,000 units in Jan-Apr

Vietnam Automobile Manufacturers Association (VAMA) members have reported April sales of 21,123 units, taking to over 80,680 the total in the first four months of this year.

According to VAMA, sales of domestically-assembled cars reached 17,910 units, down a mere 5% month-on-month, while sales of imported completely-built-up (CBU) cars rose a sharp 37% versus last month to 3,213 units, including 13,549 passenger cars, up 5% month-on-month; 6,357 commercial vehicles, down 8%; and 1,217 special-purpose autos, down 8%.

The April auto consumption figure is unchanged from March, at 21,127 units, down 4% year-on-year.

Sales of pick-up trucks which were all imported from Thailand plunged sharply last month due to Government Decree 116. Last month saw nearly 350 pick-up cars sold and most of them were cleared by the customs in 2017.

Chevrolet Colorado cars had gone through the required procedures by end-April. Ford, Toyota and Mitsubishi are still undergoing customs clearance procedures.

As reported by VAMA, from January to April 2018, sales of passenger cars rose a mere 2% to 53,438 units, while sales of commercial vehicles dropped 18% to 23,993 units, and sales of special-use vehicles slipped 36% at 3,250 units.

Sales of locally-assembled cars increased 8% to some 67,960 units, while sales of CBU automobiles plunged 47% at 12,722 units versus the first four months of 2017.

However, auto imports are expected to rise strongly in the next two or three months as Vehicle Type Approval certificates have been issued by authorities of some exporting countries and also approved by the Ministry of Transport.

EU-funded project to sustainably develop clam, bamboo value chains

Some 4.3 million EUR (5 million USD) will be funded by the European Commission’s Directorate-General for International Cooperation and Development (EuropeAid) for the project “Inclusive and sustainable clam and bamboo value chains development in Vietnam.”

The project aims to contribute to reducing poverty and inequality in rural areas of Vietnam through inclusive and sustainable value chain development. 

It will support small-scale producers and micro, small and medium enterprise (MSME) processors of clam value chain in the Mekong Delta provinces of Ben Tre, Tra Vinh and Tien Giang, and bamboo chain in central Thanh Hoa and Nghe An provinces to increase income from sustainable production and business practices from 2018 – 2022.

It looks to provide technical support for leading clam and bamboo producers to have sustainably standardized production which is vital for them to get access to foreign markets like the EU.

The project is expected to benefit about 150 cooperatives with 35,000 members and 60 MSME processors in these five provinces.

Public-private alliances, which comprise of local governments, public service providers, financial institutions, industry leaders and other stakeholders, will be set up at the five provinces to promote improved policy environment for the value chains of clam and bamboo. 

They are tasked to foster the enforcement of industry development policies and the enhancement of trade promotion activities and access to markets and loans. They are also responsible for monitoring and taking actions to inclusively and sustainably develop the value chains.

On May 25, the project’s “bamboo” component was launched at a workshop held by the European Union (EU), Oxfam in Vietnam, Non-Timber Forest Products Research Centre (NTFPRC), the Vietnam Chamber of Commerce and Industry (VCCI) in Nghe An.

Markets like the EU, Japan and the US have strict regulations on imports of rattan and bamboo-made products, including those regarding environmental protection, said Pham Van Chat from the VCCI, adding that these countries set tight control on the products’ source of origin and possible pest infestation.

To increase added values and competitiveness of bamboo products, Vietnamese producers must strictly comply with standards towards sustainability in the value chain of these products, said NTFPRC Director Phan Van Thang. 

In this way, more opportunities will be opened for Vietnamese farmers and processors in foreign markets, especially one with strict rules and regulations. They will not only earn higher incomes but also help develop more sustainable material areas, he noted.

Vietnam exported about 250 million USD worth of bamboo-made products annually while the annual export turnover of clam was estimated at 200 million USD.

Online counterfeit goods trap consumers

Fraudulent trading and counterfeits have been complicated in the southern province of Dong Nai. Violations have become more diverse, highly sophisticated, and uncontrolled, especially trading and rampant advertising cosmetics and pharmaceuticals via the social network.

Some traditional medicines labeled as "Ethno medicine" for various illness including joint treatment, cough, diabetes, and even gynecology are advertised widely on Facebook, said the Dong Nai province Department of Market Management.

Without prescribing or consulting with doctors, consumers can click through to purchase and receive folk medicines at home with a guarantee of "a full refund if they do not work" offered by "online pharmacists".

However, not only is it hard to check the origin and use of these drugs but also they pose a lot of potential health risks. For example, some mothers have recently passed on the use of a cough medicine for kids which was widely advertised on Facebook. It was said to be an application for pain relief, swelling, cough, cold, healing, burns, insect bites, acne, and itchy rash. The online pharmacists also asserted that the drug was 100 percent natural, formulated by the Dao, and safe for all ages, including infants.

However, the medicine was detected falsely labeling its features and use which were originally in the form of emulsion, deodorant, and anti-odor to assist with massage and skin care.

It is hard to monitor the quality of the folk medicines heavily advertised online. These products represent both a cost to consumers' pockets and a risk to their health as they are often mixed with modern ingredients to bring immediate effects such as pain relief, acne clearing, firm and youthful skin maintaining, appetite increasing, and weight gain, according to the authorities.

"The use of traditional medicines actually takes a certain amount of time and does not work immediately. That some people trust in the misleading advertisement for drugs derived from nature and use for a long time causes a danger to their health", a traditional medical practitioner warned.

During the first quarter of 2018, the authorities carried out over 630 inspections, detected 280 violations, fined, and remitted about VND 2.6 billion to the state's budget, the department reported.

In particular, counterfeits accounted for the highest rate with 114 cases, food safety 94 cases. The rest included smuggled goods and undocumented foreign goods with low quality.

Cosmetic counterfeits are the most common. The Feb.2 inspection of the HMH Trading & Services Co., Ltd (Tam Hiep Ward, Bien Hoa City) came upon more than 600 products without challan, most of them were cosmetics, such as toner, moisturizer, face cleanser, shampoo, conditioner, and lipstick.

Previously, the authorities also conducted a spot check on the branch of HV Cosmetics Company (Trang Dai Ward, Bien Hoa City) and found out thousands of undocumented cosmetics, including 18,000 bottles of body lotions, 224 bottles of body shower, 432 bottles of whitening cream, and 40kilogram of cream ingredient and other additives.

According to Mr. Huynh Kim Hoa, Head of Professional and Staff Division under Dong Nai Department of Market Management, the department directed the relevant teams to enhance market inspection and control as well as to propagate business households and individuals to strictly comply with the provisions of law to combat against smuggling, counterfeits, and commercial fraud.

However, the obstacles to access product information and establishments, and those trading online resulted in the limited number of cases detected and handled by authorities, Hoa concluded.