Vietnam - important market for HSBC Vietnam: CEO Pham Hong Hai

HSBC will continue to boost sustained investment in Vietnam, which has become an important market for the bank, Chief Executive Officer of HSBC Vietnam Pham Hong Hai told the Vietnam News Agency (VNA).

In a talk with a VNA reporter revolving around the withdrawal of several foreign banks from Vietnam, Hai said the country has many advantages that attract foreign investors, such as stable economic growth and socio-political situation and a young and dynamic population.

In particular, the country has an open government supportive of international economic integration, as seen through its signing of a series of bilateral and multilateral free trade agreements, with the latest being the CPTPP. Those agreements, with their standards and principles on trade, investment, intellectual property, the environment and labour, are expected to open up many business opportunities and promote Vietnam as an investment destination.

The bank chief further cited figures that demonstrated Vietnam’s potential, including a retail market worth 158 billion USD in 2016 with an average growth of 20 percent (statistics of the Vietnam General Statistics Office), and a huge market with the third largest population in the Association of Southeast Asian Nations (ASEAN), along with an expanding middle class expected to reach 35 million before 2020.

He also took note of the Government’s moves to improve the business and investment environment, which helped improve Vietnam’s ranking in the Getting Credit category of the World Bank’s Doing Business Report 2018 to the 29th place among 190 surveyed nations with 75 out of 100 points, up 5 points from 2017 and higher than the average 57 points in the East Asia-Pacific region.

The country is also catching up with the global trend of non-cash payment and fintech.

All those factors have helped Vietnam maintain its attractiveness towards foreign investors, Hai said.

Regarding recent moves of foreign banks in Vietnam, he called attention to the current trend among those banks when they shift focus on markets where they have advantages and those of large scale in order to achieve growth in line with the goals set by the parent banks.

According to Hai, many foreign banks are reviewing their long-term operation strategies in Vietnam with a view to making suitable adjustments and investment decisions. They are focusing efforts on self-driven development and their own internal strength, according to Hai. Meanwhile, foreign investment funds are likely to invest in domestic banks with potential for development and healthy business administration. 

Therefore, it can be said that the change in forms of investment such as becoming strategic partners, re-purchasing or investing in self-driven development is normal in foreign banks’ operation, he said.

About HSBC Vietnam’s targets, the director general said it will push forwards with the goal to become the bank of choice of foreign investors who want to do business in Vietnam, and also of domestic firms which want to expand to the world market.

He added that retail financial services and corporate finance will continue to be the two key development priorities for his bank.

“Our goal is to become the best international bank in Vietnam,” Hai said.

Lao Cai to develop 3.5ha hi-tech farms of lilies, roses

The northern province of Lao Cai will use advanced technology to grow lilies and roses across a total area of 3.5 hectares in four wards and township of Sa Pa district.

The provincial People’s Committee recently approved a project, worth 11.5 billion VND (506,000 USD), to develop hi-tech farms of lilies (2 hectares) and roses (1.5 hectares) in Ban Khoang, Ta Phin and Sa Pa wards and Sa Pa township from 2018-2020.

The funding includes 2.9 billion VND sourced from the State budget for the national target programme on building new-style rural areas which will be partly spent on training, purchasing machines and management. 

The remainder will be donated by citizens through labour, seeds, fertiliser, pesticides, and net and glass houses.

Flower production in Sa Pa has seen strong growth in recent years thanks to favourable local conditions. The district has become one of the key flower farming areas in the northwestern region.

The project is expected to develop flower farming in the province and aid local efforts to restructure agriculture and raise incomes for farmers.

It also aims to create links between businesses and farmers throughout production and distribution.

Banks offer preferential credit packages to businesses

Banks have launched credit packages with preferential interest rates, aiming to assist capital sources for businesses and further boost domestic production.

The Bank for Investment and Development of Việt Nam (BIDV) has introduced a new credit package worth VNĐ20 trillion (US$892.8 million), with a preferential interest rate from now until mid-2018.

Accordingly, borrowers can enjoy an annual interest rate of 6.5 per cent for short-term loans and from 7.2 per cent for long-term loans. Besides, customers who seek to do business would join many preferential programmes from other services, such as internet banking and insurance.

Since the beginning of this year, BIDV successfully implemented two preferential packages worth VNĐ25 trillion to support manufacturing businesses.

Meanwhile, Southeast Asia Joint Stock Commercial Bank (SeABank) has also launched a new programme, which provides preferential loans to corporate customers.

Borrowers could receive up to VNĐ1.5 trillion at an annual rate of 7.5 per cent for loans in Vietnamese đồng and 3 per cent for loans in US dollar. Based on financial needs, the bank will provide the best consultancy services to help enterprises improve the efficiency of capital.

In fact, many Vietnamese enterprises, especially small- and medium-sized enterprises (SMEs) are still facing long-standing difficulties in accessing loans.

According to banking and financial expert Cấn Văn Lực, most SMEs have a low management capacity and outdated technology, they lack transparency in information and feasible business plans, and do not have adequate assets for mortgages, making them ineligible for banking loans

Credit institutions are hesitant to lend SMEs money for the same reasons. Lực noted that these problems were compounded by complex banking procedures and a shortage of appropriate loan packages for SMEs.

Hoàng Thị Hồng, director of Small and Medium-sized Enterprises Development Fund under the Ministry of Planning and Investment, said it was necessary to develop a database about SMEs for credit institutions to use while evaluating.

In addition, capital-raising channels should be diversified, rather than largely dependent on banks, for instance, while raising capital from the securities market, Hồng said.

Vietnam Expo to promote regional, international economic connection

The Vietnam International Trade Fair- VIETNAM EXPO will return to Hanoi on its 28th edition from April 11-14.

Themed “Enhancing regional and global economic links”, the fair is expected to draw the participation of 450 domestic and foreign firms from 23 countries and territories worldwide, including Russia, the Republic of Korea, China, Nepal, Thailand, Japan, Singapore, Cuba, Laos, Hong Kong (China) and Taiwan (China).

On display at 500 booths will be machines, building materials, electricity, electronics and IT, food, beverage, agricultural products and health care products.

Other events to be held within the expo will be an export promotion forum, symposiums and industrial zone fact-finding tours.

After 27 years, VIETNAM EXPO has become a large-scale trade promotion event of the industrial sector. It has brought about numerous economic values as well as opportunities for Vietnamese enterprises to boost exports and branch out domestic market.

Vietnamese firms seek opportunities at Livestock Asia 2018 Expo

Vietnamese firms are ready to take part in the Livestock Asia 2018 Expo and Forum, which will take place at the Kuala Lumpur Convention Centre in Malaysia on April 19 – 21.

Displaying the latest services and advanced machines and featuring several international seminars, the event offers partnership opportunities in animal farming and aquatic sectors.

This year, it is expected to attract more than 200 Asian livestock companies, such as Behn Meyer, CAB Cakaran, Evonik and Gladron, and many other firms from more than 20 nations, including China, Denmark, Germany, India, Iran, Italy and Japan.

The Vietnamese livestock industry grew about 4.5 – 5 percent annually between 2011 and 2016 and contributed to about 30 – 32 percent of agricultural earnings.

More opportunities await Vietnam’s wood industry than challenges: official

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to generate more opportunities than challenges for Vietnam’s wood industry, according to Nguyen Ton Quyen, Vice President of the Vietnam Timber and Forest Product Association (VIFORES). 

Apart from traditional markets like Japan, New Zealand, Australia and Singapore, the Vietnamese wood industry has expanded sales to Canada, Peru and Chile with noted export revenue, said the official.  

Quyen cited export turnover of more than 1 billion USD with Japan, and hundreds of millions of US dollars with Australia and New Zealand, adding that Malaysia also has demand for Vietnamese wood. 

He said after the agreement takes effect, many tariffs will be removed. Besides, wood imported by the country and sold to other CPTPP members will also enjoy zero percent tariffs. 

This will help reduce prices and improve competitiveness of Vietnamese timber, he noted. 

More importantly, tax imposed on wood processing equipment will be reduced to zero, a boon for export processing businesses, the official said. 

The CPTPP is also hoped to attract more foreign direct investment (FDI) in the wood sector, he said, explaining that previously, investments in the Vietnamese wood sector mainly came from China but Japan has begun to invest in the country. 

Quyen stressed the need for domestic wood enterprises to improve their business administration, including technological administration, to master cutting-edge equipment.

Ha Van Kim, from Yen Son JSC which specialises in forestry product processing, said businesses should increase their production scale and invest in equipment and machine. 

He expressed his hope that interest rates will be cut by 1-2 percent to help businesses access loans to scale up production. 

The CPTPP was officially inked in Chile on March 8 (local time).

The pact will come into force 60 days after it is fully ratified by six of the 11 members. The member countries are Australia, Brunei, Canada, Malaysia, Mexico, Japan, New Zealand, Peru, Singapore and Vietnam.

Cargill licensed to develop animal feed project in Bac Ninh

US-invested Cargill Vietnam—one of the three largest animal feed producers in the country—has been licensed to build a new animal feed project in the northern province of Bac Ninh.

A source from Bac Ninh Industrial Park Management Authority told VIR that the US firm has received the investment certificate earlier this year. The project is capitalised at $70 million.

Earlier, Cargill faced great difficulties, as all preparations for the new project were halted due to a tardy approach to the completion of the necessary legal documents.

The US firm sent Document No.3107 to the Government Office, seeking a remedy for the project.

At that time, general director of Cargill Vietnam Jorge Alberto Becerra Illingworth, blamed the deadlock partly on the Ministry of Agriculture and Rural Development’s Document No.1426/BNN-CN, issued in mid-February 2017, which limits new investments in factories producing feed for pigs and domestic fowls.

With the deadlock cleared, the Bac Ninh mash project is in progress and is designed to be the company's biggest facility in the country. It will be the 11th Cargill plant of this kind.

After 22 years of operation, Cargill Vietnam now has 11 facilities across the country employing 5,000 people. The company’s products are distributed through a network of 3,200 agents. The firm supplies around 1.6 million tonnes of animal feed to farms and farmers annually.

Titanium extraction planning causes multiple problems in Vietnam

Authorities in a coastal region of south-central Vietnam have said that the planned areas for extracting a type of metal called titanium are posing a number of problems for local development.

The People’s Committee in Binh Thuan Province highlighted this point in a report on the exploitation of titanium by 2020, in which it proposed modifying the planning of areas designated for the activity.

The problem stems from the fact that 26 sites of titanium extraction overlap 46 sites meant for other projects like tourism, forestation and industrial zone construction.

The total common area is around 3,394 hectares, with the planned titanium exploitation spanning 19,527 hectares.

This gives rise to a delay in the implementation of the non-mining projects.

The postponement is further compounded when licenses of titanium exploitation usually stay valid for over ten years, after which they also have a chance to be renewed if the metal is still left at the site.

Difficulties in other aspects have likewise emerged, the report pointed out.

Local people living near mining sites have suffered from many cases of environmental pollution caused by discharged wastewater in the places, which are mostly along beaches and at a higher elevation than residential areas.

Even the titanium extracting sites are themselves encountering a hindrance - water shortage, as with no accessible rivers at hand, they have to use underground water while its supply is only sufficient for some essential activities and everyday use.

The report said that most projects for provincial economic and social development are hampered as the total planned areas for titanium extraction and reserves are extensively 102,227 hectares.

The domestic demand for titanium accounts for a small proportion of the quantity of the metal produced, and the lion’s share has been exported to China, Vietnam’s major titanium market.

But the export has decreased in recent times.

Titanium can find application in laptops, golf clubs, bone joint replacement, tooth implant, and most widely in paint as a pigment.

Car import tariffs from Japan to Vietnam to be eliminated from 2029

Tariffs on motor vehicles imported from Japan to Vietnam will be slashed to zero from 2029 at the earliest.

The tax exemption is part of the Trans-Pacific trade deal signed on March 8 between 11 member countries, including Japan and Vietnam. Industrial products will no longer be subject to trade tariffs between those countries as part of the pact.

Vietnam will eliminate tariffs for cars with an engine capacity of over 3000cc 10 years after the CPTPP goes into effect, and the rest will follow suit thee years after that, said Luong Hoang Thai, director general of the Department of Multilateral Relations at the Ministry of Industry and Trade. The earliest date for the pact to come into effect for Vietnam is 2019.

While the elimination of tariffs under the CPTPP has been widely regarded as a powerful signal against protectionism and trade wars, Vietnam has been known to raise other trade barriers to counter the loss it incurs from the elimination of import taxes.

The most recent move was a decree designed to restrict the flow of foreign cars into the country following the abolition of tariffs at the start of the year on cars imported from ASEAN countries under the ASEAN Trade In Goods Agreement (ATIGA).

The decree, which took effect in January, requires various registration and quality control certificates from the country of origin for each imported automobile. It also requires importers to have one car from each batch shipped to Vietnam to go through emissions and safety tests.

If imported cars cannot pass these requirements, they are instead left to gather dust in storage.

Foreign firms like Ford and Toyota have expressed concerns about the new decree.

CEO of Ford Vietnam Pham Van Dung said foreign authorities only provide quality assurance certificates for cars sold in their own countries, not for those that are exported. In Europe, some countries provide the certificates, but only for cars that reach the Euro 6.0 emission standard, not for those that only meet the Euro 4.0 standard used in Vietnam.

As a result, it is very costly and complicated for traders to obtain the certificates, he said.

“Businesses may have to spend two months and up to US$5,000-US$10,000 to complete the accreditation procedure,” Dung added.

Many Japanese auto manufacturers have decided to suspend exports to Vietnam following the decree.

After a two-month hiatus, earlier in March, Honda managed to complete the required paperwork to export the first batch of 2,000 passenger cars to Vietnam.

The Vietnamese Ministry of Industry and Trade claims the regulation will protect consumers and create fair competition between local auto assemblers and CBU importers.

Vietnam imported only 17 cars with less than nine seats in January this year, compared to 3,700 units in just a fortnight in January 2017. In total, the country imported 536 completely built units (CBUs) between January and February, according to the General Department of Vietnam Customs.

Japanese company decries cumbersome sampling of seafood imports

A Japanese food importer in Vietnam has called for improvements to the current procedures for sampling imports, which places a burden on companies with a clean record.

Taking samples of every import is wasteful and unnecessary, especially when it involves companies that has never failed a test, the complaint said.

Ho Chi Minh City-based Lotus Group, a Japan-invested company specializing in food imports and restaurant franchising, mentioned Vietnam’s red tape in food import inspection on March 14 during a meeting with the Japan External Trade Organization (JETRO).

The company said it imports an average of 50 kilograms of fresh seafood every two days to supply its Japanese restaurants in Vietnam.

Despite passing every inspection with flying colors, a Lotus Group representative said the company has been subject to sampling for each of its shipments, without exception.

“A restaurant-quality fish weighs about five kilograms. By taking away one kilogram for sampling, authorities make an entire fish nearly unusable,” the representative said.

“For importers with a clean record, sampling should be less frequent,” he suggested.

According to the representative, even in Japan, companies with a good history of following food safety regulations are subject to only one random sampling each year.

Not only is food inspection in Vietnam more frequent, it also takes longer, a JETRO official pointed out.

Inspection of imported meat can take up to a full week to complete, while vegetables take four days to be sampled and cleared.

This process raises the costs of preserving the items in cold storage, while also reducing the quality of the food, the JETRO official explained.

Despite such lenghthy inspections, dirty food remains an unresolved issue in Vietnam, where thousands fall ill every year from food poisoning, according to Ministry of Health figures.

Singaporean businesses interested in food industry, agriculture in Vietnam

Many Singaporean firms are interested in investing in the food industry, agriculture, and dining services in Vietnam as they forecast that these sectors will thrive in the near future amidst broader ASEAN integration.

It was according to Andy Yun, Secretary General of Singapore Manufacturing Federation representing more than 3,000 members operating in automation, biology, construction, heavy industry and more, during the second Vietnam – Singapore business exchange held in the island state on March 17. 

Yun described Vietnam as a major market in the region with potential of agriculture and food industry. Meanwhile, Singaporean enterprises are strong in technology, supply chain and logistics – a supplementary factor to bilateral partnership.  

Nguyen Van Than, Chairman of the Vietnam Association of Small and Medium-sized Enterprises, led a delegation of over 100 Vietnamese firms, many of them are start-ups, to the event. 

He said many Singaporean enterprises actively connected with Vietnamese ones at the event, proving that bilateral cooperation potential is huge. 

Accounting for over 97% of the total, Vietnamese SMEs contribute nearly 40% of the gross domestic product, 33% of industrial production value, 30% of export value and attract more than half of the workforce, he said. 

Minister at the Vietnamese Embassy in Singapore Dinh Hoang Linh said the exchange is part of celebrations of the 45th anniversary of bilateral diplomatic ties and the fifth anniversary of strategic partnership. 

Statistics showed that Singapore is now the sixth largest trade partner of Vietnam in the world and the second largest in ASEAN. Vietnam is also the 12th largest trade partner of Singapore. 

Two-way trade has grown 12%-15% annually over the past years. 

In 2017 alone, two-way trade between Vietnam and Singapore neared US$16 billion. Singapore ranks third among 126 countries and territories investing in Vietnam with a total capital of roughly US$43 billion.

Ambassador suggests SMEs partnership a focus in VN-Russia ties

Cooperation between small and medium-sized enterprises (SMEs) of Vietnam and Russia should be paid attention as they will jostle two-way trade to reach 10 billion USD by 2020 set by leaders from the two countries, said Vietnamese Ambassador to Russia Ngo Duc Manh.

He made the statement during his meeting with Governor of St. Petersburg Georgy Poltavchenko on March 16 as part of his first working trip in Russia’s second important city.

Ambassador Manh briefed the Russian official of Vietnam’s policies and priorities in international cooperation, saying that connections between the SMEs from both nations need support from the Vietnamese Embassy’s trade office and local authorities.

For his part, the St. Petersburg governor, said that the Vietnamese community in the city has been well integrating into the host city and many successful businesses have made significant contributions to the locality’s gross domestic products and created stable jobs for labourers from both sides.

With 400,000 SMEs, St. Petersburg stand ready to support them in getting connections with Vietnamese partners and share experience in the area, he noticed, adding that the restaurant and hotel business is promising for Vietnamese firms if they want to invest in the city.

At the meeting, both sides agreed to join hands to organise forums and investment promotion conferences to link SMEs of the two countries.

Earlier, Manh met with leaders from the St. Petersburg city’s Committee for External Relations and visited the St. Petersburg University to seek training opportunities for Vietnamese students.

Singaporean businesses interested in food industry, agriculture in Vietnam

Many Singaporean firms are interested in investing in the food industry, agriculture, and dining services in Vietnam as they forecast that these sectors will thrive in the near future amidst broader ASEAN integration. 

It was according to Andy Yun, Secretary General of Singapore Manufacturing Federation representing more than 3,000 members operating in automation, biology, construction, heavy industry and more, during the second Vietnam – Singapore business exchange held in the island state on March 17. 

Yun described Vietnam as a major market in the region with potential of agriculture and food industry. Meanwhile, Singaporean enterprises are strong in technology, supply chain and logistics – a supplementary factor to bilateral partnership. 

Nguyen Van Than, Chairman of the Vietnam Association of Small and Medium-sized Enterprises, led a delegation of over 100 Vietnamese firms, many of them are start-ups, to the event. 

He said many Singaporean enterprises actively connected with Vietnamese ones at the event, proving that bilateral cooperation potential is huge. 

Accounting for over 97 percent of the total, Vietnamese SMEs contribute nearly 40 percent of the gross domestic product, 33 percent of industrial production value, 30 percent of export value and attract more than half of the workforce, he said. 

Minister at the Vietnamese Embassy in Singapore Dinh Hoang Linh said the exchange is part of celebrations of the 45th anniversary of bilateral diplomatic ties and the fifth anniversary of strategic partnership. 

Statistics showed that Singapore is now the sixth largest trade partner of Vietnam in the world and the second largest in ASEAN. Vietnam is also the 12th largest trade partner of Singapore. 

Two-way trade has grown 12-15 percent annually over the past years. 

In 2017 alone, two-way trade between Vietnam and Singapore neared 16 billion USD. Singapore ranks third among 126 countries and territories investing in Vietnam with a total capital of roughly 43 billion USD.

Asia’s leading food fair to host largest contingent of global buyers

Asia’s leading food and beverage trade show THAIFEX-World of Food Asia 2018 will return in its 15th edition as the largest satellite show of Anuga, the world’s foremost food and beverage (F&B) exhibition for the Asian market.

The trade show, to be held from May 29 to June 2 in Bangkok, will feature an international line-up of exhibitors, including as many as 60 from Viet Nam.

The gateway to ASEAN’s F&B industry, the trade show is strategically positioned to penetrate the ASEAN region, which is expected to grow 5.1 per cent this year and is projected to rank as the fourth largest economy by 2050, according to the show’s organisers.

Speaking at a press conference held yesterday in Bangkok, Nuntawan Sakuntanaga, permanent secretary of the Thai Ministry of Commerce, said the food industry is one of the major sectors instrumental in driving Thailand’s economy.

Last year, food exports generated income of more than US$26 billion for the country, employing more than 10 million workers in the agriculture and fishery sectors, she said.

Thailand is looking to enhance trade partnerships, including foreign investment in the agricultural and food sectors as well as other support industries, she added.

“The ultimate goal is to encourage a more efficient and sustainable global value chain that benefits all,” she said. “The benefit of this joint effort is not just about Thailand. It is about the world of food, providing fresh opportunities for buyers, suppliers, exhibitors and consumers around the world.”

Five days of the event will be dedicated for trade visitors, up from three last year. Around 60,000 visitors from around the world, a rise of 10 per cent over last year, are expected this year.

An expanded and improved hosted buyer programme will also facilitate trade and commerce for over 3,000 buyers.

This is the largest contingent of buyers hosted at an F&B trade show as a result of a partnership between the private and public sector organisers of the show.

Key hosted buyers include Capital Retail Limited (Myanmar), Indoguna (Cambodia), Kaimay Trading (Singapore), PANDURASA KHARISMA (Indonesia), PHDeli (Philippines), and Premium Distribution (Myanmar).

Kalin Sarasin, chairman of the Thai Chamber of Commerce and Board of Trade, said the trade show boosts the competitiveness of Thailand by “bringing global and local players onto a single platform and showcasing their world-class products and services in F&B.”

The trade show is expected to play host to more than 2,500 exhibitors from 40 countries and regions. It will showcase 11 masterfully crafted trade shows across all 11 mega halls, an increase from nine halls previously.

This year’s event also welcomes Argentina as the official partner country, and more than 40 country and provincial pavilions, including new exhibitor groups from Belgium and Sicily, Italy.

Continuing the positive partnership, the Innova Market Insights will return as the official knowledge partner to THAIFEX-World of Food Asia.

Making a debut this year is the ‘THAIFEXtaste Innovation Show’, where in-depth analysis on the opportunities and challenges driving the F&B landscape will be showcased alongside top consumer trends around packaging, technology and flavours that are taking product development forward in 2018.

Three other special shows include the Halal, Organic and Franchise markets.

The trade show this year continues to host two highly anticipated public events, the Celebrity Coffee Bar and the Thailand Ultimate Chef Challenge.

As many as 50 Vietnamese F&B enterprises, double the number that took part in 2016, displayed and promoted their products at the event in Bangkok last year.

Leading Vietnamese F&B businesses, including Viet Nam Dairy Products Joint-Stock Company (Vinamilk), Dan On Foods, Rita Food & Drinks Co Ltd, and Minh Phong Green & Agricultural Products JSC, have participated in the show for the last six years.

This year, the Vietnamese High Quality Product Business Association will be taking part in the trade show for the first time.

Viet Nam’s food service industry was worth $20.9 million in 2016 and is expected to grow at a compound annual growth rate of 8.4 per cent in the next five years, according to the organisers.

The exhibition is co-hosted by Koelnmesse, a food and food-technology event organiser, along with the Thai Department of International Trade Promotion and the Thai Chamber of Commerce. 

IHG acquires Regent Hotels and Resorts     

InterContinental Hotels Group (IHG) has acquired 51 per cent stake in Regent Hotels and Resorts for US$39 million, a move that will accelerate its expansion in the luxury hotel segment.

With this deal, Regent Hotels and Resorts will become the top high-end brand in the IHG hotel brand chain.

IHG said it expected to expand the Regent brand hotels from six, or 2,000 rooms, to 40 hotels (or 10,000 rooms) in the future.

The deal is being touted as historic, as it has changed the course of the race, giving IHG a strong competitive edge in the luxury segment. The group can now take on other popular brands such as the Ritz-Carlton and St. Regis of Marriott International, Waldorf Astoria, Park Hyatt and Four Seasons, which operates as the biggest monobrand luxury player. This is considered a strategic step for IHG to expand its mark in the luxury segment, which is valued at $60 billion worldwide.

It also gives IHG a better proposition through hotel owners and developers, as it competes for management deals with other fast-expanding uber luxury names, such as Accor’s Raffles, Dorchester Collection, Shangri-la Hotels and Resorts, Mandarin Oriental Hotel Group, and New World’s Rosewood Hotels & Resorts.

Regent was founded in 1970 by legendary hotelier Robert H. Burns, who served as chief executive officer and chairman of Regent International Hotels from 1970 to 1992.

Keith Barr, chief executive officer of IHG, said, “Regent is an excellent addition to the IHG brand portfolio. We see a real opportunity to open up Regent’s tremendous potential and accelerate its growth globally.”

“IHG shares our vision for the brand and has the ability to make our ambition a reality,” said Steve Pan, executive chairman of Formosa International Hotels Corporation, which owns and manages Regent Hotels and Resorts.

In 2017, Regent reached an agreement to become the executive manager of the prestigious Regent Residences Phu Quoc resort, in which prestigious real estate developer BIM Group has invested.

Regent Residences Phu Quoc has been positioned as one of the first six-star hotel complex in Viet Nam’s leading tourist island. With this acquisition, Regent Residences Phu Quoc will become an outstanding product, the first to be named Regent under the management of IHG. This is also the third project to follow the strategic partnership between BIM Group and IHG.

This partnership makes the BIM Group’s project "unique" in the market. Once again, IHG has reaffirmed its position, continuing to achieve the top value for super-luxury resorts.

Located right in the centre of Bai Truong, Regent Residences Phu Quoc is the third component of the Phu Quoc Marina tourist complex, adjacent to the Phu Quoc Long Beach Resort. The development of the project illustrates the future of a high-end tourism complex that brings together leading resort brands, through owning luxury spaces and providing services such as relaxation, entertainment and delicate cuisine.

Regent Residences Phu Quoc is built on an area of 15ha with only 76 villas and 42 sky villas, 120 hotel rooms and many luxury amenities such as rooftop bar, sky bar, gym, Michelin Star restaurant, beach club and spa. Designed in the typical colours of Vietnamese architecture with a large area of water, the villas of the project are not only diversified in style but also bring space to the unique mineral resort, the target of wealthy investors.

The IHG hotel brand chain currently includes InterContinental® Hotels & Resorts, Kimpton® Hotels & Restaurants, Hotel Indigo®, EVEN® Hotels, HUALUXE® Hotels and Resorts, Crowne Plaza® Hotels & Resorts, Holiday Inn®, Holiday Inn Express®, Holiday Inn Club Vacations®, Holiday Inn Resort®, avid™ hotels, Staybridge Suites® and Candlewood Suites®.