Seminar looks into driving forces of Vietnamese economy

A scientific seminar on driving forces of the Vietnamese economy took place in Hanoi on November 15, attracting domestic and foreign experts. 

Addressing the event, Deputy Prime Minister Vuong Dinh Hue stressed the need to launch an inclusive strategy for comprehensive and human-oriented growth apart from stabilising macro-economy and integrating into the global economy. 

According to him, rapid and sustainable development is set in the document of the 12th National Party Congress with a view to narrowing development gap with other countries. 

He hoped that delegates will point out driving forces of the domestic economy and reasons for loose linkage and uneven growth between domestic and foreign investment sectors. 

Director of the Vietnam Academy of Social Sciences Nguyen Quang Thuan said Vietnam has been going through almost half of the 2016-2020 socio-economic development path. 

This year, private investment is expected to rise 16 percent compared to 10 percent in 2016, he said, adding that improved labour productivity and economic efficiency are attributable to the policy of improving business climate, cutting administrative procedures and corporate costs, and considering private economy an important driving force of the economy. 

Participants shared the view that the government’s goals for the next five years are heavy so that measures to boost growth for the coming years are of significance.

Vietnam looks to boost cooperation with WEF in infrastructure

The Ministry of Planning and Investment held a workshop on November 16 in Hanoi to seek measures to intensify cooperation between Vietnam and the World Economic Forum (WEF) in the field of infrastructure.

Participants discussed cooperation orientations between the Vietnamese Government and the WEF, assessed opportunities and challenges in investing in infrastructure in Vietnam, and sought ways to promote Sustainable Development Investment Partnership (SDIP) in order to push sustainable infrastructure development, especially through the public-private partnership (PPP) form.

Deputy Minister of Planning and Investment Nguyen Van Hieu said he hopes to receive useful recommendations and advice to help Vietnam complete its legal framework and improve investment climate related to infrastructure.

Alex Wong, head of Global Challenge Partnerships and Member of the Executive Committee of the WEF, said that PPP will bring about huge benefits as Vietnam needs a huge amount of money to invest in infrastructure.

However, he noted that PPP is a long-term relationship and is effective only when the parties share responsibilities and risks.

He suggested the private business sector and economists straightforwardly exchange views on challenges hindering PPP in Vietnam.

He expressed his hope for the establishment of a working group on Vietnamese infrastructure. 

Industry, trade attain outstanding growth rate in HCMC

The industry and trade fields have obtained outstanding growth rates this year with an 8.48 percent increase of growth rate in the industrial production index (IPI) and 10.89 percent growth in the total retail sales of goods and services. 
 
Reporting at a meeting yesterday, HCMC Department of Industry and Trade said that export turnover by HCMC businesses increased 15.1 percent through border gates nationwide and 12 percent excluding crude oil through border gates in HCMC.
The industry and trade fields have gained the added value of over VND356 trillion ($15.68 billion) accounting for 33.62 percent of the city’s Gross Regional Domestic Product (GRDP).

Explaining reasons for the outstanding growth, director of HCMC Department of Industry and Trade Pham Thanh Kien said that the economic structure change has created outstanding growth rates in four key industries which IPI growth being 1.83 times higher than the average growth rate of the entire industry.

Revenue contribution ratio by modern retail models to the total retail sales of goods and services hiked from 31.8 percent last year to nearly 32 percent this year thanks to the development of modern trade infrastructure, with the increase of 18 supermarkets, three commerce centers and 218 convenient stores, together with online retail form.

HCMC has issued many business assistance policies. Specifically, those investing in industrial production and support industry can receive VND200 billion ($8.81 milion) in loan a project with low interest rate for over seven years.

In 2017, HCMC has organized 35 activities to assist businesses to uphold and expand their domestic market through connectivity programs with international retail groups in the city.

In addition, the city has intensified supporting businesses to broaden their market shares to neighboring provinces and abroad and maintained measures on market stabilization, supply and demand connectivity in combination with distribution channel development.

Another factor contributing to the city’s economic growth is the fast increase in the number of newly established companies, estimated to reach 8.45 percent a year with 328,8217 businesses. The city has continued supporting business households to transfer into businesses.

According to businesses at the meeting, most enterprises in HCMC are small and super small scaled, their ability to access the Government’s preferential capital sources is limited.

Support industry has showed some changes but they are not strong enough and have yet to meet material supply demand of domestic firms.

In fields of garment and textile and footwear, costs from social, health and unemployment insurance payment are still high reaching 32.5 percent. That has affected internal force of businesses and workers.

Mr. Pham Thanh Kien said that in the upcoming time, the Industry and Trade Department will intensify trade promotion and improve the operation’s efficiency in key markets especially those where HCMC has seen trade deficit top $1 billion such as China, Singapore, Taiwan, Thailand and South Korea.

Of these, the agency will give priority to carrying out measures to help businesses take advantage of free trade agreements (FTAs), supplement technical barriers and further develop support industry to minimize negative impacts from FTAs.

Economic experts said that HCMC should right determine their export advantages to have suitable trade promotion solutions for major export items, build policies to increase the export ratio of products with high added value such as electronics, computers and software.

Deputy PM stresses innovation of local startups

Young entrepreneurs should be courageous, innovative and should not fear failure, Deputy Prime Minister Vu Duc Dam told the startup community at the annual festival for the startup ecosystem Techfest Vietnam 2017 on November 14.

“We can go fast when going alone, but going together can take us far. We need the communities of startups, investors and researchers to grow strong,” Dam was quoted by the Government news website as saying, urging more support for local startups to ensure their sustainable development. 

According to the Deputy PM, to avoid the middle-income trap and to develop, there is no way but to promote the startup trend in Vietnam in an innovative way. The Government, ministries and agencies, besides creating legal frameworks and favorable policies, have worked out projects as specific as possible to support the local startup community.   

That local startups will possibly run out of ideas or opportunities should not be a concern as there are more and more foreign investors, enterprises and research centers, Dam said.

“… Many projects may not succeed, but we still can benefit from one successful project. We welcome all foreign investors and scientists to innovate Vietnam, make it grow stronger and more sustainably, reach the targets, and have a strong startup community,” Dam told the festival. 

Besides support from the communities and the Government, startups need a lot of individual effort, Dam said, adding there will be no success without effort.

Techfest Vietnam 2017 has a larger scale than the 2016 edition with 4,000-4,500 participants, 200 startups, 130 investors and investment funds, 80 enterprises and organizations.

Last year, Dam talked about pressing needs of startups like financing mechanisms, tax policies to encourage investments in research and development, market entry assistance and participation of big enterprises in the startup ecosystem. 

As reported by Minister of Science and Technology Chu Ngoc Anh, after a year, more than 900 startups were incubated, with 300 products connected to the communities and investment funds. Five startups have been invested with a combined US$40 million.

Vietnam has so far had more than 40 venture funds, up 30% against last year, 24 incubators and ten organizations promoting business. Many big banks in Vietnam have got involved in setting up venture funds, and there is an increase in number and connectivity of startup mentors and consultants.

Around 1,000 startups have been established in the past year, increasing the total number in Vietnam to 3,000. The country’s target is to have 5,000 startups towards 2020.

At the opening of Techfest Vietnam 2017, the Ministry of Science and Technology launched the national startup portal at www.startup.gov.vn. The website is where young people can find opportunities to join startup activities and share stories of successful startups.

Maritime agency proposes suspending licensing of new container ports

The Vietnam Maritime Administration has proposed the Ministry of Transport stop licensing new container ports in the Port Group No. 5 area until 2020 as ports in HCMC are overloaded while ports in Ba Ria-Vung Tau Province have not been operating far below capacity.

Seaport group No. 5 includes ports in HCMC, Dong Nai, Ba Ria-Vung Tau and Binh Duong, and on the Soai Rap River in Long An and Tien Giang provinces.

The proposal was made at a conference on the management efficiency of seaports in group No. 5, and in Cai Mep-Thi Vai and Southeast areas that took place in Vung Tau City on November 14.

According to statistics of the Vietnam Maritime Administration, cargo throughput at Cai Mep-Thi Vai port complex totaled 40.9 million tons last year, 45% of the port’s designed capacity. Containerized cargo volume reached 2.03 million TEUs, up 50% over 2015 but representing only 30% of the capacity.

In HCMC, Cat Lai Port is increasingly overloaded, causing severe traffic congestion, while other container ports have operated at 5%-21% capacity.

Over the past four years, many solutions had been issued such as balancing cargo demand and supply, developing infrastructure, adjusting fees and service prices, and reforming administrative procedures, but the situation has not improved, said Nguyen Dinh Viet, deputy head of the Vietnam Maritime Administration.

At the conference, many enterprises said the exploitation of ports in group No. 5 has many shortcomings such as demand and supply imbalance, underdeveloped supporting services, weak infrastructure links among ports, and high road transport costs.

Pham Anh Tuan, deputy director of Portcoast Consultant Corporation, said infrastructure at ports has been exploited effectively due to unequal cargo throughput at ports.

The concentration of a large volume of cargo, especially vessels of less than 4,000 TEUs, in HCMC leads to the fact that such vessels en route to Europe or America have to transit at ports in Singapore and Hong Kong, causing freights to rise. Meanwhile, Cai Mep-Thi Vai port complex which has been developed to receive giant mother vessels that require no transits in long-haul trips has not been operating efficiently.

Tuan pointed out shortcomings at ports such as lack of management agencies, ineffective exploitation of newly-invested ports and information technology, and complex procedures.

Nguyen Xuan Ky, general director of Cai Mep International Terminal, proposed competent agencies simplify administrative procedures for enterprises by connecting database of ports to that of the General Department of Vietnam Customs.

The Government should fund Cai Mep-Thi Vai Canal dredging project to increase its depth to 15.5 meters to receive larger ships, and reduce prices of cargo handling services and maritime costs for vessels of less than 50,000 DWT to compete with ports in the region.

The maritime agency also suggested relocating ports to suburban and outlying areas of HCMC, enhancing the connection among ports, developing logistics services and reform administrative procedures.

Transport minister lays out North-South Expressway project

Minister of Transport Nguyen Van The on November 14 presented the investment, toll collection, investor selection and ability to mobilize capital for the North-South Expressway project to the National Assembly (NA), Vietnamplus news website reports.

The minister emphasized the need to build North-South Expressway as it will drive socio-economic development in the future.

The ministry will divide the project into phases to call for investment. The project has been planned to have four lanes and allow for a maximum speed of 100 kilometers per hour. The ministry will scale up the expressway to between eight and ten lanes in the coming time.

Minister The affirmed public investment projects will be a catalyst for development. My Thuan 2 Bridge, for example, has helped attract investors for Trung Luong-My Thuan and My Thuan-Can Tho expressway projects.

Investors for eight sections of the expressway implemented under the build-operate-transfer (BOT) format will be chosen through competitive bidding. They must have at least 15% to 20% of capital estimated for such projects, said The.

Answering NA deputies’ questions on the dependence on banks to organize competitive tenders to choose investors, The said the ministry would work with the State Bank of Vietnam and the Government to raise funds for the project so that banks will not have a strong voice in the investor selection process.

As for toll collection, the ministry will apply electronic toll collection technology to facilitate vehicle owners, and ensure transparency and benefits of investors.

The ministry proposed charging each vehicle VND1,500 per kilometer in the first year of operation. The fee would rise by VND200-300 per kilometer every two or three years after that, but the maximum would be VND3,400 per kilometer for a standard vehicle.

The said the toll collection plan should be prepared early to make it clear and appealing to potential investors.

The ministry will establish the project management board and employ consulting firms to ensure the construction pace and quality of the project.

Communications strategy launched for Mekong Delta Plan

The Ministry of Natural Resources and Environment (MoNRE) in collaboration with IUCN Vietnam and Can Tho University launched a project entitled “Development and Implementation of a Communication and Information Dissemination Strategy for the Principles and Recommendations in the Mekong Delta Plan” in the Delta’s Can Tho city on November 15. 

The project is part of the Strategic Partnership Arrangement on Climate Change Adaptation and Water Management between the Governments of Vietnam and the Netherlands, with financial support from the Netherlands Enterprise Agency (RVO).

The main objective of the launch is to introduce the project and a comprehensive communications strategy to disseminate the principles of the Mekong Delta Plan (MDP) to the 13 cities and provinces in the Delta. With the message “The future of the Delta is in our hands”, the communications strategy aims to provide guidance on the implementation of communications campaigns, including a training of trainers (ToT) program and training workshops involving the 13 cities and provinces.

The Mekong Delta has played an important role in Vietnam’s economic development over the last few decades but the impact of climate change, poor development, and the over-exploitation of natural resources are now seriously threatening its future.

The government and the international community have been developing various strategies and programs to adapt to and mitigate the impact of climate change, of which the MDP has been a key initiative. Written in 2013 within the framework agreement between the Governments of Vietnam and the Netherlands, it has become a key reference document and source of guidance for the Vietnamese Government. The Plan recommends principles for sustainable development, taking into account both economic prospects and environmental considerations, including climate change.

The MDP has been endorsed by high-level leaders of the government, donors, and implementing partners. There is limited exposure and understanding, however, of the principles and recommendations of the MDP at the lower levels of government and in the community. The understanding as well as endorsement of these principles will leverage the effect of the MDP on the development of the Mekong Delta. It is therefore critical to enhance awareness among grassroots levels, which are identified as civil servants at the provincial and district levels and farmers.

The project is being led by MoNRE and has been endorsed by the Ministry of Agriculture and Rural Development and the Ministry of Planning and Investment. Implementing partners are made up of a consortium that includes UNESCO-IHE (Lead), Can Tho University, IUCN Vietnam, Water.NL, the Fresh Studio Vietnam Farmers’ Union, Royal Haskoning DHV, Wageningen University, and KnowH2O Co.,

Siemens Healthcare signs MoU with VijaMetech

Siemens Healthcare Ltd. and the Vietnam Japan Medical High-Tech Development JSC (VijaMetech JSC) have officially signed a memorandum of understanding (MoU) on promoting mutual cooperation. 

The two have agreed to consider feasible business models for cooperation in order to develop oncology screening and early detection and treatment networks in Vietnam.

Siemens Healthcare will provide a spectrum of solutions for Vietnam – Japan International K Hospital projects, ranging from medical imaging and laboratory diagnostics and CT simulation in radiation therapy to value added management services such as consulting and healthcare IT services, as well as state-of-the-art technologies for therapeutic and molecular diagnostics.

Siemens Healthcare is committed to supporting VijaMetech in technology transfer, strategic advisory, clinical and workflow advisory, education and training, clinical studies, marketing, and the development of an oncology center network.

The cooperation with Siemens Healthcare will enable Vietnam – Japan International K Hospital to be one of the leading centers in the screening and early detection and treatment of oncology in Vietnam and help make VijaMetech’s plans become a reality.

According to the World Health Organization, cancer is the second leading cause of death globally and was responsible for 8.8 million fatalities in 2015. Worldwide, nearly one in six deaths is due to cancer, with more than 10 million new cases each year. In Vietnam, it is estimated that there are around 100,000 to 150,000 new cancer cases and roughly 75,000 cancer deaths each year.

The Vietnam – Japan International K Hospital is a 100 per cent locally-owned oncology hospital that operates in close cooperation with the oncology hospital network in Vietnam as well as worldwide. 

The hospital is financed by the VijaMetech JSC and forms part of its ambitious plans to develop a network of oncology screening, diagnostics, and treatment centers around Vietnam under international standards. 

The hospital is invested to meet internationally quality requirements and is equipped with a range of the most advanced equipment in order to support diagnostic, treatment and care for cancer patients as well as to support highly efficient research and training in oncology.

Masan completes buyback of over 100 million shares

Masan Group, one of leading private sector conglomerates in Vietnam, has just announced the results of its share buyback offer which was completed on November 14, 2017.

During the buyback period, Masan purchased over 100,660,000 shares, increasing its total treasury shares to nearly more than 109,900,000 or 9.5 per cent of its charter capital.

Masan paid a weighted average price of VND58,352 ($2.6) per share for a total consideration of VND5,874 billion ($267 million).

According to the group's release, the completed buyback will deliver strong shareholder returns. That is because Masan Consumer’s growth is back due to operational transformation to focus on innovation and building power brands rather than heavy investment in trade.

As a result, stock level has been normalised to 2010 and 2011 levels with double digit growth expected in 2018’s first quarter. The third quarter of 2017 results demonstrate a recovery in its major categories and strong performance in big growth pillars such as beer, energy drinks and processed meat.

Masan Nutri-Science has lowered the company’s overall consolidated financial results in 2017 as Vietnam experienced historically low livestock pig prices.

Livestock pig prices will start to recover as consumer demand for pork picks up during the Tet holidays. The company believes it will start to realise results from growing pig feed market share from 30 per cent to nearly 50 per cent in 2018.

In addition, management will continue to focus on building an integrated branded meat platform, which will enable the company to deliver strong top and bottom-line growth through livestock cycles.

The outperformance at Techcombank and Masan Resources which has witnessed a 50 per cent plus recovery in tungsten prices will continue in the medium term and is not being properly reflected in Masan’s valuation.

The successful IPOs of consumer-centric businesses (VietJet, VP Bank, and Vincom Retail) and the more recent investment in Vinamilk by Jardine Matheson show that investors today believe in Vietnam’s consumer growth story, particularly in sector leaders that can demonstrate market consolidation and a large consumer base.  

As a leader across the largest consumer segments and a strong 2018-2020 growth trajectory outlook, Masan believes it will deliver strong returns for shareholders. Masan believes the share buyback provides flexibility for growth capital while minimising dilution to existing shareholders.

Masan has built leading businesses in the branded food and beverage sector and in the animal nutrition value chain.

Masan’s businesses include Masan Consumer Holdings, the producer of some of Vietnam’s most trusted and loved brands across many food and beverage categories (such as Chin-su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Vinacafe, Wake-up, Vinh Hao and Su Tu Trang), and Masan Nutri-Science, Vietnam’s largest local animal protein company (with brands such as Bio-zeem, Proconco and ANCO).

The group’s other businesses include Masan Resources, one of the world’s largest producers of tungsten chemicals and strategic industrial minerals, and Techcombank, a leading joint stock commercial bank in Vietnam.

First Vietnam Real Estate Forum opens

The first annual Vietnam Real Estate Forum officially opened in Hanoi on November 15, featuring the participation of around 800 domestic and foreign investors, property businesses and experts.

Organised by the Vietnam National Real Estate Association (VNREA) in cooperation with financial-economic channel VITV, the forum is a large event that will assess the real estate market in a comprehensive manner, from commodities and segments to housing-related issues such as land, finance, credit and tax.

At the forum, the Ministry of Construction presented a general overview of the current real estate situation in Vietnam. In addition, the Ministry of Finance will also present tax reforms for the real estate market, while the Ministry of Natural Resources and Environment will give a presentation on the amendments to land procedures and policies and the State Bank of Vietnam will report on the credit policies for the real estate market.

This year’s forum is expected to have a positive impact on the property market towards the year end and in the future.

Under the framework of the forum, several thematic seminars on topics such as "Cheap Commercial Housing and Social Housing," "Renovation of old apartment buildings," "Green Building" and "Resort Real Estate,” , along with various discussion sessions, will be held.

The seminars will give investors and real estate businesses a chance to exchange opinions on market trends, thereby seeking market segments with high liquidity to invest in. Through these discussions, they will also be able to develop proposals and recommendations for State management agencies on the problems that need to be addressed.

In addition to providing a panoramic view of the market in 2017 and updating the participants on the latest trends, the first annual Vietnam Real Estate Forum is also an opportunity to promote the brands and images of all stakeholders working in the field of investment, business, distribution and management of real estate operations both in the country and internationally.

SCIC plans roadshows
     
State Capital Investment Corporation (SCIC) will hold roadshows to introduce investment opportunities in five companies from which it is expected to offload State capital this week.

Specifically, SCIC will make a presentation on the investment opportunity in Viet Nam Construction and Import-Export Joint Stock Corporation (VCG) on Thursday on the Ha Noi Stock Exchange.

A similar introduction about Tien Phong Plastics JSC (NTP), Binh Minh Plastics JSC (BMP), Domesco Medial Import Export JSC (DMC) and IT giant FPT Corp (FPT) will be presented during a roadshow on Friday on the HCM Stock Exchange.

At the roadshows, representatives of companies will present their companies’ operations and development strategies. SCIC will also introduce its plans to sell State capital in these companies, provide information on the competitive bidding process and respond to investors’ concerns.

At present, SCIC holds 21.79 per cent stake in VCG, 37.1 per cent stake in NTP, 29.51 per cent capital in BMP, 34.71 per cent capital in DMC and 5.99 per cent in FPT.

All these five companies are trading shares on the two national stock exchanges. SCIC’s divestment plans have attracted significant attention from investors, which has pushed up share prices of these companies in recent sessions.

On November 10, SCIC successfully sold its offering of 48.3 million shares of Vinamilk, equal to 3.33 per cent of the dairy firm’s capital, to Singaporean form Jardinr Cycle & Carriage at the price of VND186,000 per share in a deal worth a total of VND9 trillion.

MoC to sell entire holding in DIC Group
     
The Ministry of Construction has decided to offload its entire holding of 118.26 million shares, equivalent to 49.65 per cent, in Development Investment Construction Group.

The sale is expected to take place from November 17 to December 16 through order matching or put-through (negotiation) methods on the HCM Stock Exchange.

The ministry has yet to announce the selling price. However, at the trading value of over VND16,000 (US$0.70) per share on the HCM Stock Exchange, the sale is likely to be valued at some VND2 trillion ($88 million).

DIC Group’s performance was modest in comparison with its total capital of VND2.38 trillion. Ending September, the group earned profit of less than VND39 billion, far behind the yearly target of VND128 billion this year.

Shares of DIC Group are trading on the HCM Stock Exchange under code DIG. Its share price has increased 123 per cent from the start of this year. 

IFC offers $185 million credit package to VIB
     
IFC, a member of the World Bank Group, will provide Vietnam International Commercial Joint Stock Bank (VIB) with a US$185 million syndicated loan.

The IFC-led financing package aims to address two key development challenges in Viet Nam — the financing gap faced by micro, and small and medium enterprises (SMEs) and the lack of affordable housing — VIB said in its statement.

Of some 600,000 existing SMEs, only 30 per cent could access bank capital, with the total loan amount accounting for just 3 per cent of the banks’ portfolio.

As Viet Nam aims to emerge as a manufacturing and commercial hub in South East Asia, long-term funding for SMEs is becoming more critical. Also, rapid urbanisation is creating new demand for housing in major cities, with an estimated need of 374,000 additional units in cities annually, it added.

According to Han Ngoc Vu, VIB chief executive officer, IFC’s long-term funding commitment would enable the bank to double its number of SME clients and affordable mortgage portfolios over the next five years, lending more than $1 billion in total.

“The long-term financing is particularly relevant in Viet Nam, where debt markets are still nascent, limiting the funding channels and options for financial institutions,” Vu said.

The five-year financing package comprises $100 million from IFC’s own account and $85 million from three international lenders -- Cathay United Bank Co Ltd; Industrial and Commercial Bank of China Ltd, Hong Kong branch; and Thailand’s Kiatnakin Bank Public Company Ltd.

Kyle Kelhofer, IFC country manager for Viet Nam, Cambodia and Lao PDR, said this syndicated facility marks a milestone for VIB and other local privately-owned banks in Viet Nam to access long-term funding from foreign commercial lenders, enabling them to develop longer-term financial products such as residential mortgage lending.

VIB joined IFC’s Global Trade Finance Programme in 2011 and the current trade line of $120 million has facilitated it to help local companies increase their import and export activities and create jobs. 

Workforce urged to improve skills for Industrial 4.0
     
The future of work will be affected by the 4.0 Industrial Revolution, but it does not mean automation will totally replace people.

This statement was made by ManpowerGroup, one of the world’s leaders in innovative workforce solutions. Industry 4.0, which is now taking place in America, Europe and parts of Asia, can break the labour market structure. When automation replaces manual labour in the economy or when robots replace people in industries, millions of workers around the world may then become unemployed.

However, creativity, emotional intelligence and cognitive flexibility are skills that will tap human potential and allow people to augment robots, rather than be replaced by them, said Simon Matthews, Country Manager, Viet Nam, Thailand and Middle East at ManpowerGroup.

During a workshop on "Preparation of Human Resources and Technology for Digital Era in Viet Nam" held in the capital city on November 14, Matthews said that demand for skills of workforce in the 4.0 industry will be elevated and the local workforce in Viet Nam must equip themselves with better skills.

From 2018, when ASEAN Economic Community members give the workforce more opportunities to find work freely within the region, the job competition will become "hotter". Then, those with the appropriate skill sets will call the shots, he said.

ManpowerGroup’s statistics in the Talent Shortage Survey 2016-17 involving 42,000 companies from all over the world shows that skilled jobs are still classified as the hardest jobs to find employees for five consecutive years.

In South East Asia, following the survey, nearly half of the respondents said they had difficulty in recruiting. The year 2016 is considered as the most difficult one for human resource departments in the last 11 years.

In Viet Nam, the recruitment for senior level positions is in serious shortage, partly due to the "brain drain", as the number of Vietnamese employees working overseas in 2015 increased by 8 per cent versus that of 2014, according to the survey.

In order to prepare sufficient skilled personnel for the Industry 4.0, attendants at the conference emphasised the importance of developing a coordinated programme between relevant agencies and employment service providers to expand information channels on job opportunities to job seekers.

Strengthening career orientation programmes, consulting workers on their career paths and enhancing foreign language skills for students at universities and vocational schools are also necessary. Developing training projects to reskill and upskill workers, and ensuring workers’ employability and sustainable development in the 4.0 era should be also included.

For its suggestion, ManpowerGroup urged businesses in Viet Nam to stay updated with the trend and compete with the times, and to equip employees with up-to-date technology and skills.

Companies need to change the way they recruit talent, and use digital applications in recruitment and training, it said. 

Norway seeks aquaculture projects
     
Representatives from 17 Norwegian fisheries and aquaculture companies visited HCM City from November 7-15 to explore business opportunities and promote co-operation on sustainable aquaculture.

The companies also took part in a Norway - Viet Nam seminar on fisheries processing and aquaculture organised in the city on November 13-14.

The seminar was attended by more than 120 representatives from the Directorate of Fisheries, local departments of fisheries, local fishing vessel owners and the Viet Nam Sea-Culture Association.

The seminar was organised by the Royal Norwegian Embassy and Innovation Norway in coordination with the Directorate of Fisheries under the Ministry of Agriculture and Rural Development (MARD).

The seminar introduced Norway’s technologies and products for fisheries and fishing vessels, hatcheries, marine and pangasius farming, harvesting and processing.

It also aimed to connect Vietnamese and Norwegian businesses in the sectors of fisheries, pangasius farming, marine fish farming, intensive shrimp farming and lobster farming;

The event discussed how to apply advanced technologies in the value chains of fisheries, aquaculture and processing in Viet Nam.

Tran Dinh Luan, deputy general director of the Directorate of Fisheries, said the seminar introduced Norway’s technologies that could help Viet Nam achieve sustainable fishing and aquaculture.

He said the fisheries sector would focus on improving seafood quality, fish health, water treatment and traceability, and at the same time reduce mortality and use of antibiotics.

Harald Naevdal, commercial counselor of Norwegian Embassy in Ha Noi, said: “The marine business segment is one of the most important elements in the business relations between Viet Nam and Norway.”

“Norway has one of the most developed aquaculture industries in the world,” he said.

In recent decades, the co-operation between Norway and Viet Nam in the fisheries sector has contributed to the development of Viet Nam’s first law on fisheries and profitable and sustainable fish farming in the country.

In addition, Nha Trang University has also benefited from 20 years of academic co-operation with several prestigious universities in Norway with high competence in the marine sector, with the support of the Norwegian government.

ASEAN food scientists discuss product innovation
     
Around 500 Vietnamese and foreign scientists, technologists, professionals, students, stakeholders in the food industry, and food business owners and managers gathered for the 15th ASEAN Food Conference which opened in HCM City on Wednesday.

The four-day conference "Food science and technology: Integration for ASEAN Economic Community sustainable development" highlights significant developments in research and innovations in food science and technology, with an emphasis on food products innovation, to strengthen food science and technology in each member state and the whole region.

Possible solutions to tackle issues in the ASEAN food economy such as technical barriers to trade, harmonisation of regulations, food service and entrepreneurship, food safety policies and food security, consumer trends, and climate change and its impact on the food sector will also be explored.

Delegates from 30 nations took part in this learning and discussion platform that will feature the latest research topics, results, innovations, and applications in the region.

“This conference is an opportunity to enrich and advance knowledge of food science, technology, innovation, industry and education, and to network and explore collaboration opportunities with other delegates at AFC 2017,” Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said in his speech.

The specific topics on the agenda are food technology for processing, bio-technology, packaging; food storage and preservation: postharvest handling, minimally processed fruits, contamination, freezing and drying of foods and crops; nutrition, health and wellness: food quality, ingredients, nutrient bioavailability, functions of food, halal food; food engineering and automation: engineering properties of foods, packaging design, process monitoring, methodological and instrumental developments, design and operation of food processes and plant and equipment.

The conference will also discuss food product development and innovation: marketing and management, sensory, consumer trends, gastronomy, traditional development of functional foods; food and economy: food laws, food security, regulations and policies, food safety and policies, food service and entrepreneurship, multilateral agreements; and education and training.

The event has been held every two years by turn in ASEAN member countries since 1982.

Viet Nam hosted it before in 2003.

Seminar seeks ways to ensure food safety

Cuisine culture as well as food safety and hygiene were highlighted at a Vietnam-France seminar held in Ho Chi Minh City on November 15.

Much Vietnamese food has been heavily affected by France’s cuisine, with many of the food habits from France having stayed within Vietnamese food culture, and in return, Vietnamese food has influenced French delicacies, said French Ambassador to Vietnam Bertrand Lortholary.

He stressed the importance of cultural exchanges between the two countries, including the sharing of trust in product quality.

Participants at the seminar discussed changes in consumption trends of Vietnamese and French nationals and shared information on husbandry and food processing in Vietnam. They also discussed ways to improve food quality and ensure food hygiene.
                                                              
Dinh Tuong Lan from the French Agricultural Research Centre for International Development, said that Vietnamese people spend 40 percent of their income on food and are willing to pay more for safe food.

She said that ministries, departments and sectors should join hands to assure that safe food is sold to both Vietnamese and foreign consumers.

Dak Lak introduces green energy potentials to Korean firms

The Central Highlands province of Dak Lak introduced its potentials to develop green energy to businesses from the Republic of Korea (RoK) at a forum held in Buon Ma Thuot city on November 15.

According to the local socio-economic development master plan through 2020 with a vision to 2025, Dak Lak will focus on developing clean energy and hi-tech agriculture.

The province expects to generate over 1,400 MW of wind power in the future. It also plans to build eight biomass power plants with total capacity of 120 MW.

Notably, Dak Lak is in a region which has huge potentials for solar energy.

The province has potentials to develop green energy and renewable energy on land and hydropower reservoirs.

At the forum, local authorities announced preferential investment policies regarding land lease and corporate income tax.

Representatives from Korean firms discussed issues relating to solar energy, waste treatment, and building a smart city.

Tien Giang seeks measures to boost star apple exports to US

Measures to boost star apple exports to the US were discussed at a conference held in the Mekong Delta province of Tien Giang on November 14.

According to Pham Anh Tuan, Vice Chairman of the provincial People’s Committee, star apple is among the locality’s seven competitive fruits and entering the US market opens big opportunities for local farmers to ensure economic efficiency and social security.

To ensure sustainable shipments to this fastidious market, businesses and farmers need to cultivate the fruit in a value chain, pay due attention to the importers’ quarantine requirements as well as set up GAP specialised farming zones, he noted.

Cooperatives, scientists, businesses and farmers should join hands to improve quality of farm produce, assure products’ origin and seek stable markets for the fruit, he added.

Cao Van Hoa, Acting Director of the provincial Department of Agriculture and Rural Development, the province has made significant efforts to support star apple exports to the American market, including setting up specialised growing zones, connecting local farmers with export enterprises and popularising the US’s requirements on star apple imports.

Trade barriers when exporting to the US as well as farmers’ role in improving star apple’s quality were highlighted at over 100 training courses as well, Hoa said.

Meanwhile, Doan Van Sang, Director of Cat Tuong Agricultural Products Producing & Processing Co., Ltd, asked relevant authorities to continue transferring cultivation techniques to local farmers so that their fruits are qualified to enter the US market.

Vietnam has become the first country allowed to export star apple to the US after 10 years of negotiations. This follows a report sent by the US Animal and Plant Health Inspection Service (APHIS) to the Ministry of Agriculture and Rural Development’s Plant Protection Department.

The breakthrough was based on the findings of a pest-risk analysis and public reviews and comments that found the fruit could be safely exported to the US. 

Together with litchi, longan, rambutan and dragon fruit, star apple is the fifth Vietnamese fruit allowed to be sold in the American market.

Preliminary statistics show that Vietnam has about 5,000 hectares of star apples, mainly in the Mekong Delta province of Tien Giang (3,100 hectares) and Can Tho city (1,200 hectares).

Fruit productivity is about 18-22 tonnes per hectare. Total annual output is more than 60,000 tonnes. Until now, most of the fruit has been either eaten locally or exported to China and ASEAN nations. The successful export of the fruit to the US market opens up great opportunities for Vietnam to develop growing areas.

Breath of fresh air blown into real estate market

Vietnam’s strong economic growth since 2015 has pushed the domestic property market into a thriving and stable development period, said President of the Vietnam National Real Estate Association (VNREA) Nguyen Tran Nam.

Nam, who is former Deputy Minister of Construction, made the comment at the first annual Vietnam Real Estate Forum jointly held by VNREA and financial-economic channel VITV in Hanoi on November 15.

Upbeat signs have been seen in the market index, he said, stressing that property inventories have fallen sharply due to growing housing demand while the flow of foreign direct and indirect investment into the sector has soared.

Besides making substantial contributions to the country’s sustainable economic and social security development, the property market’s recovery has provided an impetus for the financial-securities market and other related industrial sectors such as construction and building materials, Nam added.

At the forum, Minister of Construction Pham Hong Ha emphasised the importance of the real estate market in the market-oriented economy, noting that his ministry is working with relevant ministries, sectors and localities to build a project on evaluating the real estate market, forecasting mid-term trend and recommending solutions and mechanisms to promote stable development of the property market.

The forum gave investors and real estate businesses a chance to exchange opinions on market trends, thereby seeking market segments with high liquidity to invest in. Through discussions, they were expected to come up with proposals and recommendations for State management agencies on problems that need to be addressed.

Participants at the event provided a panoramic view of the market in 2017 and forecast trends in 2018 and the coming years.

Vietnam values cooperation agreement with WEF

The Vietnamese government highly values the cooperation agreement with the World Economic Forum (WEF), Deputy Prime Minister Vuong Dinh Hue assured head of the WEF’s Asia-Pacific region Justin Wood during a reception in Hanoi on November 15. 

Hue hailed Wood’s visit to launch the Vietnam-WEF agreement on building a self-resilient Vietnamese economy and lauded the WEF for working closely with Vietnam to build a plan to implement the cooperation agreement in priority fields of competitiveness improvement, inclusive development, infrastructure, education, digital economy, agriculture and food security. 

According to him, the Vietnamese government approved the plan and assigned agencies concerned to work with the WEF to carry out specific activities. 

He affirmed that Vietnam treasures the WEF 2018, given that the country recently successfully held the APEC Year and APEC Economic Leaders’ Week 2017 and is to host the WEF on ASEAN 2018. 

The host wished to popularise the WEF on ASEAN to the global business community, thereby helping the Vietnamese government hold dialogue with the world’ top businesses and spread commitments to reform and extensive global integration.

Wood said the WEF will partner with Vietnamese ministries to effectively implement the bilateral agreement. 

The guest also took the occasion to invite Vietnamese government leaders to the WEF Davos scheduled for 2018 in Switzerland.

ASEAN Food Conference runs in HCM City

The 15th ASEAN Food Conference (AFC), themed "Food Science and Technology: Integration for ASEAN Economic Community Sustainable Development", opened in Ho Chi Minh City on November 15.

Addressing the opening ceremony, Deputy Minister of Science and Technology Tran Quoc Tuan said the conference introduces achievements of research and innovation in food technologies and connects scientists, managers, and businesses involved in the sector. 

During the two-day event, discussions revolved around food science and preservation, nutrition and health and food product development, among others. Reports on issues such as global food security, regional cooperation, and food system in response to climate change, were also presented.

Participating firms took the occasion to display specialities of ASEAN member states. 

On the sidelines of the biennial conference, participants visited food companies in the southern provinces of Binh Duong, Tien Giang and Tay Ninh.

Deals worth 258 mln USD inked at Vietnam-China trade fair

The 17th Vietnam-China International Trade Fair has seen over 258 million USD worth of trade deals signed between enterprises from both sides in six days.

The fair, running from November 10-15 in the northern province of Lao Cai, attracted more than 100,000 visitors, bringing in revenue of about 40 billion VND (1.76 million USD).

Speaking at the event’s closing ceremony, Deputy Director of the provincial Department of Industry and Trade Nguyen Truong Giang said the trade fair once again proved Lao Cai’s important role in the Kunming (China) – Lao Cai – Hanoi – Hai Phong – Quang Ninh corridor as well as in bridging Vietnam, ASEAN and southwest China.

This year’s fair, the biggest of its kind, brought together more than 300 exhibitors from Vietnam, China, the Republic of Korea, Laos, Thailand and Ghana who showcased their products at over 800 booths. On display were products in the areas of agriculture, forestry, fishery, mechanics, electronics, timber, leather, clothing, and handicrafts.

On the occasion, some 40 individuals and organisations were honoured by the provincial People’s Committee for contribution to the fair’s success.