Nha Khac Lam multi-level company faces inspection

The Ministry of Industry and Trade has decided to set up an inspection team to supervise the multi-level marketing activities of Nhã Khắc Lâm Co., Ltd.

According to the ministry’s decision 1667/2017, Minister of Industry and Trade Trần Tuấn Anh asked the inspection team to examine and verify all multi-level marketing activities of the company.

All violations will be penalised as stipulated.

He also asked relevant authorities to take measures to protect the rights of those who were involved in multi-level trading with the company.

The team will be led by Lê Thị Phương Hoa, deputy chief inspector of the ministry. Representatives of the ministry’s Competitiveness Management Department, Marketing Management Department and Legal Department will join the team.

On May 10, the ministry’s Competition Authority sent a document with information of the operation of Nhã Khắc Lâm Co., Ltd to departments of industry and trade in localitites across the country.

The ministry affirmed that the company had not yet completed procedures to get a multi-level registration certificate, which meant it was not allowed to organise multi-level marketing activities.

The ministry required the departments of industry and trade in localities to closely monitor the operation of the company.

Nhã Khắc Lâm Co.,Ltd, formerly known as MTV Gano Excel Việt Nam Co., Ltd, is located on 631 Nguyễn Trãi Street, District 5, HCM City. The current legal representative of the company is Huỳnh Vĩnh Lợi, who is also deputy head of Thiên Ngọc Minh Uy Co., Ltd.

After amending the Business Registration Certificate at HCM City’s Department of Planning and Investment, the company undertook procedures to obtain the multi-level registration certificate. However, despite not completing procedures, the company knowingly implemented multi-level marketing activities.

Last month, Thiên Ngọc Minh Uy was fined a total of VNĐ1.5 billion (US$70,000) by the ministry for 80 separate offences, and earlier this year, it was fined VNĐ215 million ($9,590). The offences included breach of the contracts it signed with network members, failing to meet the level of required training for new members, operating without notifying the local authorities and violating label regulations on its goods.

The company was ordered to stop all multi-level marketing activities and was required to fulfil all obligations to members of its network. 

Central Highlands to cut coffee cultivation area

Total coffee growing area in the four Central Higlands provinces will be reduced by about 53,000ha by 2020, according to the Steering Committee for the Central Highlands Region.

The move is part of efforts to designate the region as a key coffee growing area that is adaptable to climate change and developing sustainably.

By 2020 it is expected that Dak Lak province will have 190,000ha of coffee, 150,000ha in Lam Dong, 115,000ha in Dak Nong, and 75,000ha in Gia Lai, making a total of 530,000ha.

Based on the planning, the provinces will review and cut down areas that are inefficient and unsuitable for sustainable development.

The Ministry of Agriculture and Rural Development told the localities to study coffee varieties which have high productivity and quality and are resistant to insects and adaptive to climate change.

In the short term, the localities were asked to use new varieties with high productivity from 4.2 tonnes to 7 tonnes of beans per hectare to maintain the region’s total output of 1.3 million tonnes despite the shrinking area.

APEC: PECC general meeting focuses on regional growth prospects

The 24th General Meeting of the Pacific Economic Cooperation Council (PECC) has proposed ideas for the future of the Asia-Pacific partnership which will be submitted to the APEC senior officials and ministers after one day of working in Hanoi. 

Under the theme “Vision for an Asia-Pacific Partnership for the 21st Century", the event on May 15 comprised four sessions on prospects of the Asia-Pacific’s partnership and of the region’s growth and trade connectivity, new development driving forces, and the regional agenda on digital economy.

Former director of the World Trade Organisation Pascal Lamy analysed emerging trends in the global trade which he said require governments to cooperate closer to harmonise policies, regulations and help people better understand open trade and related social security policies.

Participants highlighted demand for forming more partnerships and seeking driving forces for the liberation of trade, regional connectivity, and inclusive, sustainable and innovative growth. 

They valued the role of micro-, small- and medium-sized enterprises, and services and investment in the regional economy.

A number of opinions focused on new trends arising from the third wave of globalization in the digital age/internet economy, where data and information are resources for and driving forces of growth.

Participants said with the principles of win-win cooperation and flexible dialogue mechanism, APEC and the PECC have built a favourable framework for regional economies to discuss new cooperation contents.

They praised APEC collaboration with regional and international organisations, asking regional cooperation mechanisms to push ties toward inclusive and sustainable development and build a vision for the Asia-Pacific partnership. 

The Pacific Economic Cooperation Council is consisted of an international secretariat based in Singapore and a network of 23 official member committees, mostly from APEC economies.  

Vietnam joined the council in September 1995.

Japanese NGO assists Vietnamese farmers in producing safe greens

Environmentally conscious farmers in the Mekong Delta province of Ben Tre are eagerly adopting a Japanese-sponsored model of producing safe greens to ensure a sustainable livelihood for locals.

Over the past six months, specialists from the Japanese non-profit Seed to Table have been wholeheartedly helping farmers in An Hoa Tay Commune in Binh Dai District make the switch to organic farming and animal husbandry.

The NGO, with sponsorship from the Japanese Ministry of Foreign Affairs, is dedicated to the promotion of eco-friendly agricultural practices as a means of supporting community development in Vietnam, according to its website.

The program teaches farmers how to produce compost and herbal ‘potions’ that can be used as alternatives to synthetic fertilizers and conventional pesticides, as well as best practice in setting aside a portion of each harvest to use as seeds for the next crop.

Crops harvested under Seed to Table’s methodology meet stringent standards for Participatory Guarantee Systems (PGS) certification, a locally focused quality assurance system based on the active participation of stakeholders and dependent on trust, social networking, and knowledge exchange.

To participate in PGS, farmers are required to work in teams, with team leaders responsible for cross-checking products harvested by other farmers and coordinators charged with carrying out regular quality inspections before any certificate to be granted. 

Despite consuming more time and energy than traditional farming methods, the environmentally friendly approach helps cut production costs and yields higher profits than conventional cultivation.

At one particular PGS-certified garden owned by Ho Thi Hong, vegetables of different varieties are environed by grass hedges grown to feed goats and cows while stemming inorganic substances from the water of nearby plots.

Flowers thrive in the same beds with verdant greens including water morning glory, basella alba, gourds, and papaya trees to keep pests deterred by their smell at bay, Hong explained.

Safe insecticides made from garlic, ginger, and chili are also commonly used to keep pests from feeding on the crops.

“If we run out of wine, we can also drink the potions,” an organic greens grower said with a smile.

Farmers also work at night to catch harmful worms attempting to eat their plants and many cover their veggie beds with nets to keep insects away.

According to Ho Van Chau, a member of the An Phu organic greens grower group, implementing the PGS process requires meticulous care in its early phases, such as selecting quality seeds and dipping them in warm water instead of chemicals before sowing.

Seed to Table has loaned most of the participating households at least two cows, the feces of which are composted for more than three months with grass, straw, dried fish, and a naturally occurring genus of fungi called Trichoderma to eradicate damaging viruses and kill weeds.

“We have to clear any weeds that grow by hand because weed killers are strictly prohibited under the PGS model,” Hong said.

When the project first started, many farmers in the area were skeptical about the potential for profit, but after only a few months of implementing the new system, their burgeoning income has converted them to believers.

“It required hard work during the initial crops planted under the system, but our efforts have paid off in the following crops. Our produce fetches higher prices compared to conventional veggies and because the compost enriches the soil we’ve been able to save a lot on fertilizers and pesticides,” Hong added.

Le Quang Hay, a technician from Ba Tri District’s agriculture promotion agency, revealed that farmers keep meticulous records of their production process, and that the packaging bears the group’s code and the group leader’s phone number so consumers can easily trace the origin of their produce if they suspect any issues with its hygiene.

So far, the Seed To Table PGS project in Ben Tre has been successfully adopted in areas spanning 1,000, 2,000 and 3,000 square meters in Loc Thuan Commune in Binh Dai District, Ba Tri Town, and An Hoa Tay Commune in Ba Tri District, respectively.

The organization has provided volunteer participants with first-hand technical training and insect-repellent nets, and acts as a bridge between safe greens growers and health-conscious clients willing to pay higher prices for organically grown veggies.

Before enrolling in the program, participants are first required to submit samples of their soil and irrigation water to a quality inspection agency in Ho Chi Minh City for testing.

If their soil samples test free of chemical fertilizer residues and their irrigation water is clean enough to drink from, they are permitted to enroll in the program.

After applying the techniques for at least one year, farmers who meet rigorous standards are granted a PGS certificate by Seed to Table, though the organization is not reluctant to revoke certificates from recipients that stop conforming to the stringent process.

Most organic farmers in Binh Dai and Ba Tri report that their efforts to adhere to the process have yielded revenues 10 times higher at the Xanh Tu Te (Decent Greens) market compared to when they were using chemicals.

The sales outlet, which runs in District 3, Ho Chi Minh City on a regular basis, has provided a growing clientele with reliable access to safe food and reduced growers’ dependence on intermediary businesses.

The farmers’ produce is always in high demand, as many customers buy veggies in bulk to store for later use.

Growers in An Phu are also allowing groups of tourists to visit their gardens and are being urged to offer scheduled tours to visitors wishing to learn about the cultivation process and taste dishes made from their quality greens.

Ino Mayu, the head representative of Seed To Table in Vietnam who has bonded with local farmers for more than two decades and speaks impeccable Vietnamese, said that she had previously launched the PGS model in localities in the northern province of Hoa Binh.

She is planning to expand the organic greens model to high schools in all districts in Ben Tre, and also introduce methods in growing safe coconuts, the province’s specialty, and banana trees in Loc Thuan and Vang Quoi Dong Communes in Binh Dai District.

“We also focus on educating Vietnamese children and youths so they can become environmentally conscious citizens, sustain socio-economic growth, and transfer the technology to other Vietnamese localities,” Mayu noted.

Start-up of Vietnam's Nghi Son oil refinery delayed to 2018

The commercial start-up of Vietnam's new US$7.5 billion Nghi Son oil refinery will be delayed to 2018, from an initial expected start-up in the third quarter of this year, according to a notice on a government website.

The 200,000 barrels-per-day (bpd) oil refinery is now planning to start commercial operations in the first quarter of 2018, according to a notice on the website for Deputy Prime Minister Vuong Dinh Hue and a source close to the matter.

Trouble with a mechanical test on some of the refinery's components set back test runs at the plant, causing the delay, according to the notice.

A spokesman for Nghi Son did not immediately reply when contacted by Reuters.

The start-up delay should defer an expected decline in product margins until after Nghi Son starts operating, said Nevyn Nah, an oil analyst with consultancy Energy Aspects.

"The impact on margins will be shifted to mid-2018 if the refinery is commissioned in first quarter of next year," he said.

Vietnam's imports of oil products were expected to fall after Nghi Son began operations.

The delay of additional fuel supplies in Asia could be good news for refiners, a trader with a North Asian refinery said.

Still, it could weigh on the crude oil market, a Singapore-based crude trader said.

The refinery was expected to take delivery of its first crude oil in May and send out its first oil products by the third quarter of the year, the company said in February.

The plant is Vietnam's second refinery and will process Kuwaiti crude oil to produce liquefied petroleum gases, gasoline, diesel, kerosene and jet fuel, mainly for the domestic markets.

Kuwait now has less demand for its crude after shutting its 200,000 bpd Shuaiba refinery in April and this is expected to continue until Nghi Son starts, four crude traders said.

Nghi Son Refinery sent out requests to shipbrokers earlier this month to charter 27 very large crude carriers, ships capable of carrying 2 million barrels of oil each, over July 2017 to June 2018 to transport crude from Kuwait to the refinery, according to a tender document seen by Reuters.

Japan's Idemitsu Kosan and Kuwait Petroleum International each own 35.1 percent of Nghi Son Refinery and Petrochemicals, while PetroVietnam has 25.1 percent and Mitsui Chemicals 4.7 percent.

Vietnam's existing Dung Quat refinery meets about 30 percent of domestic demand.

Private firm discovered building 104 unapproved apartments in central Vietnam

The notorious Muong Thanh Group has been found building over 100 apartments that defy approved designs in the central Vietnamese city of Da Nang.

The high-rise developer unilaterally adjusted the original design of a hotel and apartment complex in Ngu Hanh Son District, Da Nang, to add a total of 104 apartments for sale.

Although local authorities had detected the violation last year, and ordered a cessation of the construction at the time, Muong Thanh ignored the order and completed the extra properties.

The firm has since been advertising the illegitimate apartments for sale.

According to Tuoi Tre (Youth) newspaper reporters’ observation on Thursday last week, the building was 42 stories high and nearing completion.

The project’s building permit was issued on February 17, 2016 and indicated that the structure would include 42 floors and a two-story basement, with apartments allowed from the sixth floor up.

The original design showed that the second to fifth floors of the building would be reserved for communal facilities like parking, kindergartens, swimming pools and gyms.

However, Muong Thanh has constructed 104 flats on these floors.

The violation was discovered by local authorities in September last year, Vu Quang Hung, director of the municipal Department of Construction said, adding that the firm had been fined VND40 million (US$1,753).

As Muong Thanh continued with their unapproved construction, it was suspended on April 11, Hung continued.

Dau Xuan Minh, project director of the building complex, told Tuoi Tre that the sale of the 104 additional apartments had been publicly advertised.

Regarding the cessation order, Minh said that they had only built the exterior of the floors so that they were in sync with the rest of the building, while the interior construction had been stopped.

Following another order from the municipal administration, Muong Thanh has not handed over the flats on these floors to their clients, he added.

According to Hung, the case has been submitted to the local People’s Committee, Party Committee, and the Ministry of Construction for a decision.

Based on the directions of these higher authorities, the Da Nang construction department has requested the developer submit the necessary documents to seek approval of an adjusted design.

If the process is complete, the 104 apartments will be legitimized.

However, Muong Thanh has found an alternative location to build the community facilities, the official elaborated.

If Muong Thanh wins the rental auction on this property, the facilities are expected to be constructed on 4,500 square meters of land 200 meters from the original building complex.

If the firm does not win the auction, it will be forced to build the community facilities on the second to fifth floors in accordance with the original design, Nguyen Thanh Tien, deputy head of the office of the Da Nang People’s Committee, asserted.

“The city’s authorities have yet to approve the adjusted design of the building,” Tien added.

Muong Thanh was previously found building a hotel without a permit in the Central Highlands in December 2016.

In September last year, the firm was still constructing a mixed-use building in the south-central province of Khanh Hoa despite violating its height limit.

80 Vietnamese finance experts and lecturers receive IFRS certificates from ICAEW

On May 15 and 16, the Institute of Chartered Accountants in England and Wales (ICAEW) awarded the first international financial reporting standards (IFRS) certificates in Vietnam to nearly 80 financial experts and university lecturers in the country.

The certificates were awarded at the closing ceremony of the project “Supporting the Adoption of International Financial Reporting Standards (IFRS) in Vietnam” funded by the UK government.

ICAEW, in collaboration with the Ministry of Finance (MoF), the State Securities Commission, and the British Embassy in Vietnam, held the closing ceremony and awarded IFRS certificates to the financial experts and university lecturers who have successfully completed the programme.

This is the first time the IFRS certificate of an international organisation has been awarded in Vietnam to such a large number of accomplished trainees.

The recipients are financial and accounting experts from MoF, the State Securities Commission, and the two stock exchanges, a number of listed companies, large auditing firms, and lecturers from various universities. They have completed online training courses, including a five-day course with specialists, and passed module tests as well as a final exam, meeting the standards of ICAEW.

Going through the training process, most experts have grasped the basic concepts as well as the core principles of IFRS, and its practical uses. Moreover, experts were also updated on international IFRS practices as well as learnt lessons and encountered challenges that may come up during the application of these standards.

Under the current progress on international integration and development, the adoption of IFRS in financial reporting is becoming increasingly popular on a global scale. Statistics show that there are 131 countries and territories that allow or mandate the application of IFRS.

In Vietnam, IFRS is also part of MoF’s plan because of the international standard’s benefits, which include enhancing transparency, eliminate barriers to financial accounting standards, and strengthening competitive advantages in attracting foreign investment, which plays an important role in sustaining Vietnam’s GDP growth.

“The adoption of IFRS in financial reporting is crucial to the realisation of Vietnam’s aspirations to move from a frontier market to an emerging market status, as measured through the MSCI index. Increasing standards of corporate governance, transparency, and business integrity through IFRS adoption will boost foreign investors’ confidence and support Vietnam’s further integration into the global economy,” said Giles Lever, British Ambassador to Vietnam.

“I am delighted that training funded by the UK government and delivered by ICAEW is helping to build knowledge among regulatory agencies, universities, and major companies. I hope this will help create the conditions for a future decision by MoF to adopt IFRS standards in Vietnam,” he added.

Adopting IFRS in Vietnam is necessary because of the standard’s multiple advantages. Nevertheless, adopting it on a wider scale remains a challenge.

“Officially applying IFRS is not easy. IFRS is a complex standard with a frequently changing nature. Meanwhile, the majority of the people working within the accounting and finance field are not qualified, because they lack experience or foreign language skills,” said a representative of MoF.

 “Therefore, I think IFRS training programmes of prestigious international organisations, such as ICAEW, will allow our experts to grasp the basic concepts as well as the core principles of IFRS in practice. I highly appreciate the effectiveness of this training programme and expect it to be implemented on a wider scale in the coming years.”

Currently, corporate financial statements have to meet the 26 Vietnam Accounting Standards (VAS) issued by MoF between 2001 and 2005. Thus, the international standard training programmes of international professional organisations provide financial workforce and university lecturers with useful and highly practical knowledge, which will improve their professional competence.

“Participants of this programme undergo a highly interactive training course, including active group discussions and real world examples, which help them grasp the core principles of IFRS and its applicability. Through this project, we wish to make IFRS and its knowledge more popular under the standards of a leading international professional organisation,” said Mark Billington, ICAEW  regional director in Southeast Asia.

“At the same time, ICAEW also wishes to share knowledge, provide professional support, and assist MoF in advancing the application of IFRS, which will help improve the transparency and professionalism of the financial sector in Vietnam,” he added.

After successfully piloting the project, ICAEW, in cooperation with MoF and the British Embassy in Vietnam, will consider further expanding it in the coming time.

Cement and clinker exports show upturn in April

Vietnam businesses exported more than 1.924 million tons of cement and clinker in April to get US$67.408 million, up 6.7% in volume and 7.6% in value, according to latest statistics from the General Department of Vietnam Customs.

In the first four months of this year, more than 6.7 million tons of cement and clinker valuing at US$235 million were shipped abroad, up 12.8% and 7.9%, respectively.

Bangladesh and the Philippines were the two biggest importers of Vietnam’s cement and clinker, of which Bangladesh made up 37% and the Philippines accounted for more than 32%. Other major importers are Peru, Taiwan, Sri Lanka, Mozambique, Malaysia, Cambodia, Laos and Australia.

International border trade fair kicks off in An Giang

The 11th Tinh Bien – An Giang international exposition opened in the Mekong Delta province of An Giang on May 15, as part of a border trade cooperation programme between Vietnam and Cambodia.

Besides officials of An Giang and other Mekong Delta localities, delegates from Kandal and Takeo provinces of Cambodia attended the opening event. 

The fair features 350 stalls that are showcasing a wide range of products, including farming produce, household products, machines, apparel, footwear and tourism products.

Demonstrations of agricultural machines, gardening advice sessions, bull races and musical performances are also underway at the event.

The fair runs until May 21.

Aiming to enhance trade connectivity between enterprises of Vietnam and other countries in the Mekong Sub-region, the Tinh Bien – An Giang trade fair has evolved from a provincial event into an international one.

New Zealand- Vietnam’s major milk and dairy products supplier

Vietnam imported US$64.2 million of milk and dairy products in April, bringing the total import value to US$278.8 million in the first four months of this year, down 5.01% against the same period last year, according to the General Department of Vietnam Customs.

Currently, New Zealand is the key supplier of milk and dairy products for Vietnam with US$69.6 million (down 18%), accounting for nearly 25% of market shares.

Singapore came second with US$46 million (up 74.5%) and the US went third with US$26.1 million (up 57.67%).

Besides, Vietnam also imports milk and dairy products from Thailand, Germany, France, Japan and the Republic of Korea.

In the coming time, new products imported from Australia and New Zealand will be present at the domestic dairy market.

KLF Global has completed negotiations with Pactum Dairy from Australia and GMP Dairy Ltd from New Zealand to produce KLF dairy products for sale in Vietnam market in late June.

Vietnam telecoms advance in digital TV race

Demand for new mobile services has dropped over the past year and growth in the segment has come to a standstill, said Pham Hong Hai, deputy minister of Information and Communications at a recent forum in Hanoi.

With the arrival of 3G and 3G+ and ahead of the launch of 4G the segment is experiencing a gradual shift to more value-added services with considerably less expansion in the sheer numbers of the existing customer bases.

As a result of opening the market to telecoms that are not involved with state-owned VNPT a lot of healthy competition has arisen, said Mr Hai, noting the government is looking for ways to capitalize.

Growth in the mobile market segment has largely evolved around prepaid mobile services and the expansion of the customer base since the decision was made to open the markets in line with World Trade Organization commitments.

Viettel is the largest mobile operator in Vietnam with a market share of over 40%, followed by MobiFone VTNL-Vinaphone and Vietnamobile in descending order of the magnitude of their market dominance, said Deputy Minister Hai.

Because of their bloated bureaucracies and other cost inefficiencies these telecoms are now forced to rethink their business strategies in order to compete with the smaller and more leaner companies entering the marketplace.

In many cases, these newcomers can offer the same or better quality services to Vietnamese consumers at prices far below cost to the less competitive and larger state owned enterprises, which are being forced to streamline their operations in a major way if they are to survive in a profit oriented world.

Over the past couple of years, he noted that the market has reached a saturation point, having jumped from a mobile penetration rate of 135% in 2013 to 147% in 2016. Further slow growth is expected to continue over the next five years and will likely hit 150% by 2021.

Mr Hai added that the fixed broadband subscriber market in the country has also experienced moderate growth over the past few years, having expanded from a relatively small base.

Penetration has increased from 6% in 2013 to 8% in 2015 and 9% in 2016. Fixed broadband penetration is now forecast to grow moderately over the next five years, reaching between 14% and 17% by 2021.

VNPT has been the leader in the broadband market largely on the back of its migration to a packet based Next Generation Network (NGN).

The general idea behind NGN is that one network transports all information and services (voice, data and all sort of media such as video and Channel Broadcast) by encapsulating these into packets, like those used on the internet.

In the meantime, advancement of the digital economy in Vietnam has been largely sluggish, underscored Mr Hai.

The government has been prodding the country’s move into the age of the digital economy, he noted, adding it has been constantly emphasizing the need to use e-commerce to improve the country’s economic competitiveness but to date hasn’t had much to show for all the effort.

On a positive note, however, the country is moving quite quickly towards the digitalization of TV broadcasting. A strategy plan for conversion to digital TV should see the country’s television stations broadcasting completely digital by 2020.

Vietnam textiles to attend globe’s largest B2B event in India

The Vietnam Textile and Apparel Association has unveiled plans to send a delegation of representatives to showcase the country’s prowess at a major business-to-business (B2B) event for the textiles segment in India.

Textiles India 2017, which takes place this coming June 30 through July 2, promises to be a landmark trade event for the textiles and apparel industry at the global level, said Nguyen Thi Tuyet Mai of the Association.  

At the event, exhibitors from all around the globe are expected to display their wares in more than a thousand stalls, Mr Mai noted.

In addition, a record setting 2,500 international buyers, agents, designers, retail chains from across the globe, and 15,000 domestic buyers have already signed up to attend, he added, noting that this is an event Vietnam textiles can’t afford to miss.

Ensuring humanism in a developing socialist-oriented market economy

The Party and State have studied ways to improve the socialist-oriented market economy in Vietnam to meet the requirements of economic reform and rapid sustainable growth.

That is the main item on the agenda of the on-going 5th session of the Party Central Committee in Hanoi. VOV would like to give comments on ways to ensure humanism in developing Vietnam’s socialist-oriented market economy. 

The 9th National Congress of the Communist Party of Vietnam in 2001 affirmed that Vietnam’s economic model in the transitional period is a multi-sectoral commodity economy operating in accordance with market mechanisms under State management and Party leadership – in other words, a socialist-oriented market economy. Vietnam has fined tune the economy mechanism to bring higher benefit to the people.

The renewal process has proved the correctness of the Communist Party of Vietnam’s decision to shift to the market economy model. It has helped Vietnam tap internal potentials, attract foreign capital and technology, promote production capacity, develop production forces, and ensure strong annual GDP growth. The social and technical infrastructure has been upgraded. People’s lives have been improved.

Compared to a full market economy, Vietnam’s market economy has remained different from the world due to an imperfect understanding of a socialist-oriented market economy and the need of economic reform for development. It’s time to clarify and reach a consensus on Vietnam’s socialist-oriented market economy. 

Economist Vo Tri Thanh said “We’ve talked about the socialist-oriented market economy for years. It’s time to reexamine it, because the world has changed and Vietnam is at a turning point in reform and development. We need to analyze 3 aspects: the rules, the organization, and the operation of a socialist-oriented market economy.”

Secretary General of the Vietnam Economic Science Association Nguyen Quang Thai said the Party and State have insisted on pursuing a socialist-oriented market economy. 

“A true market economy complies with market rules, supply and demand, market prices, and competition. The Party Central Committee has set two goals: a modern market economy and international integration. We highlight humanism in Vietnam’s market economy, where rapid sustainable development as reform results benefits every citizen,” said Mr Thai. 

Associate Professor Doctor Nguyen Thi Nhu Ha of the Ho Chi Minh National Academy of Politics said “We must resolve issues relating to ownership, business organization, and restructuring. Human resources development is an important factor in scientific and technological research and application to boost productivity. Focus should be put on agriculture to make it a key sector of the national economy.”

 Developing a socialist-oriented market economy is the key to building a modern economy and integrating into the global labor chain. It’s the correct way to exploit national resources towards industrialization and modernization.

HAGL shareholders’ meeting on June 30

Hoàng Anh Gia Lai Group (HAGL Group) and Hoàng Anh Gia Lai Agricultural Joint Stock Company (HAGL Agrico) plan to hold their annual shareholders’ meeting on June 30.

On May 12, the two firms were put on an alert status on the HCM Stock Exchange (HOSE) as the after-tax profit of the parent company’s shareholders in 2016 was negative. However, the two stocks always topped the stock market. Shares of Hoàng Anh Gia Lai (HAG) have risen 65.5 per cent since the beginning of the year while shares of HAGL Agrico (HNG) have jumped 86.3 per cent.

The meeting, to be held in Hoàng Anh Gia Lai Hotel, No 1 Phù Đổng Street, Pleiku City, Gia Lai Province, will include a report on business activities and investments in 2016, and the plans for production, business and investment for 2017.

FLC Group to augment investment in Binh Dinh province

Property developer FLC Group plans to raise its total investment in the central province of Binh Dinh to about 30 trillion VND (1.32 billion USD) in the near future.

Huong Tran Kieu Dung, Vice Chairwoman of FLC’s board of directors, said provincial authorities permitted the group to build a residential area named Nhon Hoi which will cover 800ha of land and feature all conditions of a modern and civilised urban area.

To help attract tourists to Binh Dinh, FLC is going to work with authorised agencies to upgrade and expand the road from Phu Cat Airport to Nhon Hoi Economic Zone, shortening the time to travel from the economic zone to the FLC Quy Nhon resort complex to 15 minutes.

It will also work with relevant sides to open a direct air route from Quy Nhon city to north central Thanh Hoa province in July, and two other routes between Quy Nhon and the Republic of Korea and China, she added.

FLC’s projects in Binh Dinh include the FLC Quy Nhon resort complex, worth 3.5 trillion VND (154.2 million USD) and covering 200ha of land, two golf courses, and a 180-ha zoo.

FLC Sea Tower, a five-star shopping and hotel centre that cover 1.7ha of land in Quy Nhon city, is expected to be put into use in late 2017. The group has also invested in a tourism site in Eo Gio beach of Nhon Ly commune, Quy Nhon city.

Banking Vietnam 2017 set for HCM City

The 2017 Banking Vietnam Conference and Expo will take place from May 18 to 19 this year in HCM City focusing on digital technology, according to the State Bank of Vietnam.

“The 2017 Banking Vietnam Conference and Expo will introduce new initiatives and implementations of digital technology, to broaden and enhance accessibility, availability and utility for the banking sector in Vietnam,” said Nguyen Kim Anh, Deputy Governor of the State Bank of Vietnam (SBV) at a press conference yesterday.

The major themes of this year’s conference include digital technology as an engine for the financial sector and initiatives to transform the banking system, discussed by leading national and regional financial and banking experts, and the world’s top technology providers.

The SBV confirmed that this year’s event will include reports on financial services in Vietnam, growth strategies for the future, and showcase financial tools based on digital technology and online security.

The 20th edition of the event features the concurrent Banking Technology Expo for the latest technology in the banking industry, together with award ceremonies for experts, researchers and organisations whose contributions improved Vietnam’s financial environment.

The event is organised by the Banking Strategy Institute, the Informatics Technology Department of the Bank under the SBV, and IDG Vietnam with the attendance of government representatives, National Congress committees, central ministries and agencies, together with those from the SBV, major commercial banks and research institutions.

As the biggest annual information and communication technology banking conference and expo in the country, Banking Vietnam is a big event for bankers, technology professionals, and financial experts.

Speakers at the conference include key movers and shakers in the banking industry with deep understanding of emerging trends, opportunities and challenges for Vietnam’s financial sector.-VNA

Steel industry sees slowdown

The domestic steel industry has seen a slowdown in recently months with weak steel sales and price drops, according to the Vietnam Steel Association (VSA).

Some factories have faced difficulties and are likely to suffer losses, it added.

VSA members produced over 730,000 tonnes of steel in April, an increase of 3.6 percent from the same period last year, but a decrease of 14.26 percent from the previous month, said VSA Vice President Nguyen Van Sua. 

More than 635,000 tonnes of steel were sold last month, down 14 percent year on year and 20 percent from March, he said.

Sua added that the domestic price of steel in April was 400 – 700 VND per kilogramme lower than that of March, fetching at 10,600 – 10,800 VND per kilogramme (VAT excluded) and is likely to fall even more.

The price of scrap steel went down by 20 – 25 USD per tonne to 255 – 265 USD per tonne while that of steel billets has declined by 20 – 25 USD per tonne since April 24 to about 390 – 400 USD per tonne.

Local producers continued to offer discounts and price guarantees to customers and suffer fierce competition from exported steels, further worsening the situation.

The association advised the domestic steel producers to help stablise the market by revoking price guarantees and reducing discounts. It also encouraged information exchange and cooperation between the producers to ensure a healthy business environment.

Growing tourism gives boost to resort property market

The impressive growth of Vietnam’s tourism sector has given a boost to tourism and resort property market, according to experts. 

During the 2010-2016 period, the number of international tourist arrivals in Vietnam doubled to 10 million from 5 million. The number of domestic visitors surged considerably, from 28 million to 62 million. 

This period is considered a “golden” time for the resort property market, especially in condotel model, particularly in Nha Trang, Da Nang and Phu Quoc in 2016. 

Specifically, Nha Trang welcomed nearly 1.2 million foreign tourists, up about 23 percent year-on-year while the central city of Da Nang served around 1.7 million vacationers, marking a 33 percent increase. 

Director of Savills Asia Pacific’s Hotel Consulting Department Rudolf Hever attributed the growth to improving infrastructure and easier visa policies for foreigners, saying that Vietnam currently records nine international airports which are being upgraded with more terminals and runways. 

Thanks to visa waiver for foreigners, the number of foreign tourists to Phu Quoc, the southern province of Kien Giang, soared 25 percent in 2014 compared to the previous year. 

The department predicted that hotel and resort supply from midscale to luxury segments will grow 29 percent on average per year in the next three years. Similarly, Da Nang and Phu Quoc will see respective growth of 30 percent and 27 percent. 

However, experts warned that occupancy and hotel room prices will be put under pressure if demand is yet to keep pace with supply so that investors should thoroughly consider expected occupancy and budget for their projects in the coming years.

APEC adopts framework on human resources development in digital age

Representatives from APEC member economies adopted a framework on human resources development in the digital age in Hanoi on May 15.

The information was revealed by Deputy Minister of Labour, Invalids and Social Affairs Doan Mau Diep at a press conference on the outcomes of the APEC High-level Dialogue on Human Resources Development in the Digital Age on the same day.

The framework proposes a group of suitable policy orientations and measures to support the APEC member economies in preparing labourers for joining the employment market amid opportunities and challenges from the fourth Industrial Revolution (Industry 4.0), he said.

Delegates agreed that to grasp opportunities and address challenges from the revolution, APEC should be used as a regional forum on policy dialogue and cooperation in human resources development in the digital age.

The specific objectives of the framework are to provide high-level policy orientations to strengthen regional collaboration in human resources development in the digital age; and draw out common challenges in the context of technological changes.

It also aims to identify and implement activities in priority cooperation areas where APEC can contribute supplementary value such as the future of work in the digital age and labour market policies, education and vocational training, and social security. 

The representatives from the 21 APEC economies proposed the framework be realised between 2017 and 2025, and ministers in charge of human resources development will assess the implementation process in 2022.

They also approved a joint statement on the High-level Dialogue on Human Resources Development in the Digital Age, Diep said. 

Responding to reporters’ queries on the impacts of the Industry 4.0 on the labour market, the Deputy Minister said the revolution will affect almost all groups of workers, especially low-skill labourers. Many traditional occupations will disappear to be replaced by many new ones (in the areas of digitalisation, programming and data protection).

He noted the need for training new skills to help labourers adapt to changes caused by the digital revolution as well as encouraging them to engage in life-long learning to have more job options.

APEC economies should develop a social security floor to protect labourers, especially vulnerable groups, with the goal of “no one is left behind”, Diep said.

Scheme on trade union institutions in industrial, processing zones adopted

The Prime Minister has recently adopted a project on building trade union institutions in industrial and processing zones with an aim to improve trade unions’ role in their political ties with the Party and authorities. 

The project targets building accommodation, kindergartens, supermarkets, cultural and sport facilities for workers in industrial and processing zones. 

It looks to complete 10 institutions between 2017 and 2018, and put into use 40 others from 2018-2020. 

By 2030, all industrial and processing zones nationwide strive to issue their own trade union institutions, thereby improving union members and workers’ cultural and spiritual lives. 

Authorities of centrally-run cities and provinces are tasked with creating favourable conditions in land access and administrative procedures, making it easier for workers to rent or buy houses. 

They are asked to improve the quality of housing for workers that meet requirements for technical and social infrastructure in terms of transport, health care, culture.

Urgent need for workers’ housing in Dong Nai

Dong Nai faces a severe shortage of workers’ housing since 60 percent of the southern province’s one million workers hail from other provinces and cities.

Most workers and their families live in a shabby rented room because budget social housing is being built too slowly.

Nguyen Thanh Son is a worker who came from the central province of Nghe An to work at the Hoi Nai Industrial Park in Tran Bom district 10 years ago.

He and his wife have three children. The couple earn 10 million VND (400 USD) a month and can only save 1-2 million USD (45-90 USD) out of that.

His room measures a mere 15sq.m. His children often fall sick because of their poor condition.

“We try hard to save for a house but we cannot because our income is just enough for our daily needs,” Son told Viet Nam News Agency.

His is one of 12 rooms in Bui Chu Hamlet in Trang Bom’s Bac Son commune, most of which are rented by workers from central and northern provinces.

“Owning a house is a very distant dream for us. We used to hear a lot about social housing where workers like us can pay a little every month. But we hear no more.”

A recent survey by the Dong Nai Trade Union found only 8 percent of workers have savings while 72 percent live from hand to mouth.

Due to their low incomes, 62 percent of workers have to work extra time, with most facing financial difficulties and lacking support from their families.

In recent times several companies that hire a lot of workers, like Phong Thái and Chinh Xac Vietnam in Trang Bom district and Chinwell Fastener in Nhon Trach district, have built a combined 65,000sq.m of bachelor housing for 10,000 workers.

“Companies building dormitories for their workers is very good but in the long term workers will marry and need their own houses,” Tang Quoc Lap, deputy chairman of the Dong Nai Trade Union, said.

The Trade Union has called on the provincial People’s Committee to build apartments for workers at 6 million VND (266 USD) per sq.m 2 million VND (85 USD) less than the price stipulated by the Ministry of Construction.

Workers could pay for the houses each month together with low interest, Lap said.

Besides, the Trade Union would ask relevant authorities to fix standards for space, hygiene and rents for rented accommodation, he added.

Nguyen Thanh Lam, deputy director of the province’s Department of Construction, said “By 2020, Dong Nai province will complete 20,000 apartments for workers and low-income people and dormitories for students.”

By 2020, housing demand in Dong Nai would increase to over 80 million sq.m, Lam said.

The province said to provide housing, especially for workers, the Government should provide funding for several projects and have more policies to attract investment in social housing.

In the next three years, another 150,000 rooms are expected to be added around the province for workers and 7,500 apartments in Nhon Trach district.

Vietbuild 2017 to kick off in Ha Noi     

The 2017 Vietbuild international exhibition will open in Ha Noi tomorrow with the participation of 300 domestic and foreign businesses.

New products and services in the fields of construction, building materials, real estate and interior and exterior decoration will be on display at some 1,000 pavilions from 12 countries and territories, such as South Korea, Japan, the US and Thailand.

Viet Nam Real Estate Association chairman Nguyen Tran Nam said the exhibition has become a venue for construction businesses to promote trade and co-operation.

Notably, the event will showcase products which were used at large-scale housing and real estate projects, with new features, functions and improved quality.

The event will continue until May 21, including two workshops on non-baked construction materials. 

Ha Nam to boost co-operation with South Korea     

The People’s Committee of Hà Nam Province organised a Memorandum of Understanding (MoU) signing ceremony between the province and the Việt Nam-Korea Friendship Association (KOVEA) on Monday.

Under the MoU, Hà Nam will provide a favourable business environment for Korean firms to do business in the province.

Both sides also committed to co-operating in developing tourism, industry, services, urban development and construction.

In addition, the association can open a Korean language centre at a Hà Nam-based school and establish a Korean cultural street in the province.

Meanwhile, on behalf of the Korean side, KOVEA will support the province’s delegation in investment promotion activities in country every year.

KOVEA’s chairman Kim Hyeon Uk said the association will be a bridge for socio-political organisations, businesses and residents from the two countries to promote friendly and co-operative relations in the fields of economy, culture and education.

Nguyễn Xuân Đông, chairman of the provincial People’s Committee, appreciated the support from KOVEA and asked the province’s Department of Planning and Investment and other related units to co-ordinate with the association to implement the MoU’s commitments. 

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR