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Dong Nai draws nearly US$690mn in foreign investment
The southern province of Dong Nai attracted nearly US$690 million in 76 newly licensed and existing foreign-invested projects up to May 17.
This marks an increase of 143 per cent against the same period last year, fulfilling nearly 70 per cent of the annual target.
Of the amount, over $346 million were poured into 42 new FDI (foreign direct investment) projects and over $343 million into 34 existing ones, according to the provincial Department of Planning and Investment.
In May alone, Dong Nai attracted several new major projects, such as the $40-million project of South Korea’s HI-KNIT company at Nhon Trach 6A industrial park, the $33-million project of the Netherlands’ Air Manufacturing Innovation Vietnam at Giang Dien industrial park, the $32-million project of Singapore’s Logistic Property Vietnam at Loc An-Binh Son industrial park and the $29.8-million project of Japan’s Kolmar Vietnam at Long Duc industrial park.
Some projects with huge amounts of additional capital include the Netherlands’ Bosh Gasoline Systems-HCP plant at Long Thanh industrial park, with an addition of over $71 million; Singapore’s OPV Pharmaceutical Joint Stock Company at Bien Hoa 2 industrial park, with over $47.7 million; Japan’s SMC Manufacturing Vietnam at Long Duc industrial park, with $47 million and Belgium’s Terumo BCT Vietnam at Long Duc industrial park with $30 million.
According to the provincial Department of Planning and Investment, the locality prioritises projects applying advanced and eco-friendly technology and requiring skilled labour as well as those in the supporting industry.
So far, Dong Nai has attracted 1,792 FDI projects, with a total registered capital of $32.5 billion, of which 1,323 projects worth $27.46 billion are still valid.
The projects have received investment from 45 countries, with South Korea, China’s Taiwan and Japan being the largest investors.
Overseas investors are interested in the fields of industry, logistics, energy and technical infrastructure.
Vice chairman of the provincial People’s Committee Tran Van Vinh said local authorities will push for administrative reforms to reduce time and expenses for businesses.
The committee and relevant units, such as customs, taxation and planning and investment, will maintain periodical dialogues with enterprises to listen to their problems and discuss measures to improve operational efficiency, Vinh said.
HCM City has ambitious plans for retail sector
HCM City aims to have 40 per cent of retail sales through modern distribution channels like malls and supermarkets by 2020, and 60 per cent a decade later.
This is part of its plan to develop the sector, and it also hopes to grow the retail and consumer services segments at 8.5 - 11.5 per cent a year by 2020, and 6.8 – 9 per cent a year in 2026–30.
To realise those ambitious goals, the city is working on developing its markets by fixing infrastructure and facilities including parking areas and storage systems. It will also improve the markets’ product and service quality, focusing on health safety and clear sources origins, as well as surveying markets with poor performance or quality, which will be closed down.
As for supermarkets and malls, authorities are seeking to usher in fair competition and rapid development.
The small neighbourhood shops that dot the city will be persuaded to upgrade into modern retail stores such as convenience stores or specialised stores to serve local needs and adopt modern quality assurance and service standards.
According to the city Department of Industry and Trade, there are 239 markets, 168 of them basic or temporary ones, 207 supermarkets, 43 shopping malls, and 1,800 convenience stores.
Nguyen Phuong Dong, deputy director of the department, said the retail market is growing robustly with more and more channels modernising.
LienVietPostBank co-operates with Japanese partners
Lien Viet Post Commercial Joint Stock Bank signed a co-operation agreement with two Japanese partners Mitsui Knowledge Industry Company Limited (MKI) and Doreming Company in Tokyo on May 18.
Under the agreement, LienVietPostBank will provide human resource management solutions and salary payment through its Vi Viet e-wallets to the two companies’ employees in Viet Nam.
The agreement was a result of eight months of negotiation after the parties demonstrated their pilot products by connecting Vi Viet with Doreming’s human resource management system.
They agreed to not only provide the human resource management solutions and salary payment but also build a product package to develop consumption and micro finance for employees in both Viet Nam and the region.
Speaking at the signing ceremony, Nguyen Dinh Thang, the bank’s chairman of management board, said he believed the cooperation that combines the experience and ability of Japan’s leading firms – MKI and Doreming — which are among the top 100 fintech in the world, and LienVietPostBank’s Vi Viet, the first product in Viet Nam to receive the Asia Pacific ICT Alliance Awards, would be able to meet business demands.
On the sidelines of the signing ceremony, Pham Tien Dung, director of the State Bank of Viet Nam’s Payment Department, and LienVietPostBank chairman Thang met Japanese partners such as Seven Bank, Ogaki Kyoritsu Bank and the Japan Credit Bureau to seek cooperation opportunities in the financial, banking and fintech sector in the future.
Vingroup target 50% profit growth
Private business conglomerate Vingroup is seeking shareholders’ approval for targets of 34 per cent and 50 per cent increases in revenue and net profit, respectively, this year.
In the documents sent to shareholders prior to its annual shareholders meeting, expected on May 31 in Ha Noi, the board set a total revenue target of VND120 trillion (US$5.3 billion) for the year, and a net profit of VND8.5 trillion.
In the first quarter, the company earned VND29.1 trillion in revenue and over VND1 trillion in net profit, up 84 per cent and 70 per cent year-on-year, respectively.
Despite the news, Vingroup’s stock declined by nearly 7 per cent on Monday to close at VND114,400 ($5.02) per share on the HCM Stock Exchange.
Vingroup is also planning a big dividend with a total rate of 21 per cent, of which a 10 per cent will be paid by stocks for 2017’s business results and another 11 per cent will be paid in cash, being extracted from accumulative net profits as of the end of the first quarter of 2018. Total payment value will be more than VND5.54 trillion, expected to be paid in the second quarter of 2018.
In addition, the board of directors will also present to the shareholders a plan to lift the foreign ownership limit to 49 per cent after removing some divisions of the company.
Shareholders will authorise the board to review and make a list of restricted business lines, as well as carry out the necessary procedures to change the corporate business registration.
Foreigners currently hold about 10.2 per cent of Vingroup’s capital according to data on the financial website vietstock.vn as of December 31, 2016.
This year, VIC is planning to intensify its operations in all major fields including real estate, travel and entertainment, retail, healthcare, education and agriculture. At the same time, the company will also make further investment in the automobile industry with the ‘Vinfast’ brand.
The company will strengthen its presence in provinces nationwide, especially in the development of Vinmart and Vinmart+ retail chains. Regarding the quality of services, the company is still aiming for international five star standards, upgrading the infrastructure of the Vinpearl entertainment system and the Vinmec hospital system, enhancing the training quality of Vinschool and Vinuni.
In 2017, consolidated revenue of VIC reached VND89.3 trillion, up 55 per cent year-on-year, net profit touched VND5.6 trillion, up 27 per cent over the previous year. Earning per share (EPS) was VND1,816.
Vietjet to pay dividend of 60%
Vietjet Aviation Joint Stock Company (HOSE code: VJC) has received approval from the State Securities Commission of Viet Nam to pay dividends of 60 per cent in 2018.
Accordingly, Vietjet has been allowed to pay a cash dividend of 40 per cent and a dividend of 20 per cent by share.
Earlier at its General Annual Shareholders Meeting 2018 in HCM City, Vietjet Board of Directors approved the final registration date for receiving dividend payment by shares on July 2. Shareholders who own 10 shares will receive two new shares.
After having completed dividend payment, Vietjet’s charter capital will increase from VND4.51 trillion (US$200 million) to VND5.41 trillion ($240 million).
Previously, the company paid a dividend of 40 per cent by cash in 2017.
Over the years, Vietjet has regularly paid high dividends from time to time over 100 per cent to its shareholders.
The closing price of VJC shares at the trading session on Monday was VND184,000 per share, down 3.2 per cent.
Vinh Hoan explains lower VDTG stake to AGM
The Vinh Hoan Corporation (HSX: VHC) revealed the details of its reduced holding in the Van Duc Tien Giang Food Export JSC (VDTG) at its 2018 annual general meeting (AGM) held on May 12 in the Mekong Delta’s Dong Thap province.
The food corporation’s holding in VDTG was cut from 100 per cent to 35 per cent in late February.
Firstly, this was not a matter of the stake being sold, the AGM heard. Rather, VDTG raised its capital three-fold, from VND305 billion ($13.4 million) to VND872 billion ($38.3 million), which resulted in Vinh Hoan’s stake declining from 100 per cent to 35 per cent.
VDTG’s new partner is an independent private investor and also an existing customer. With experience in distribution channels, especially in Singapore and China, the partner is expected to play an important role in expanding VDTG’s sales network.
Secondly, VDTG paid Vinh Hoan a cash dividend of VND400 billion ($17.5 million) in the first quarter before the capital increase, thus leaving Vinh Hoan in a better financial position to fund its farming and capacity expansion projects, especially the 220-ha Tan Hung farm with total planned capital expenditure of VND220 billion ($9.6 million), and capacity expansion of up to 200MT per day for a new subsidiary - Thanh Binh Dong Thap - by end of 2018.
Thirdly, as at December 31, 2017, VDTG’s net debts totaled VND630 billion ($27.6 million) (over 60 per cent of the consolidated net debts of VND992 billion ($43.5 million)), and interest expenses of VND34 billion ($1.5 million) (approximately 50 per cent of consolidated interest expenses of VND71 billion ($3.1 million)). These debts will not be consolidated into Vinh Hoan’s balance sheet from March 2018 as VDTG is accounted for under the equity method.
Consequentially, Vinh Hoan’s net debts as at March 31, 2018 fell 77 per cent, from VND992 billion ($43.5 million) to VND224 billion ($9.8 million).
Finally, Thanh Binh Dong Thap is expected to replace VDTG as a better profit-generating unit, as it has outdone VDTG in terms of the proximity of its farms and factories to Vinh Hoan’s main manufacturing location in Dong Thap province. With VND100 billion ($4.4 million) capital expenditure appropriated to expand capacity at Thanh Binh by another 100MT per day, to reach 200MT per day by the end of 2018, without consolidating VDTG, Vinh Hoan’s targeted revenue and profit growth is still up.
The corporation’s export value reached $29.8 million in April, up 20 per cent year-on-year, in which the average sales price rose 37 per cent year-on-year while volumes fell 12 per cent. Rocketing sales prices and falling volumes have been driven mainly by raw material shortages and a scarcity of fingerlings supply since August last year.
In addition, the ever-increasing demand from China has also contributed to the upward price trend, as the country opts for premium products and is willing to pay global prices. In the first quarter, pangasius exports to China surged 30 per cent in price and 42 per cent in volume compared to the same period last year. Collagen and gelatine saw the best performance, with four-month export value rising 2.4-fold year-on-year. As the end of April, Vinh Hoan exported collagen and gelatine worth $2.8 million.
Liberty & MoMo partner in Insurtech revolution
From April to May, two of Liberty Insurance’s leading products - cancer insurance CancerCa$h and travel insurance TravelCare - began to be distributed on the MoMo E-wallet, a strategic step for both corporations in combining insurance and technology, called Insurtech, to provide cheaper, faster and simpler insurance services.
Simply by logging in to the MoMo app, users can easily and securely purchase and pay for Liberty CancerCa$h and TravelCare insurance.
“For Liberty, MoMo E-wallet is one of our critical strategic partners helping deliver the best user experience,” said Mr. Nguyen Ngoc Duc, Marketing Director at Liberty. “Liberty will continue rolling out its products to MoMo in the near future, as well as integrating multi-channels to create an eco-friendly system for Liberty consumers to shop leisurely with easy payment and access.”
“Inheriting the experience and success of the Insurtech promotion strategy from the Liberty Mutual Group in the US and Liberty across the globe, the cooperation with MoMo E-wallet is an important step by Liberty Vietnam to be the pioneer in the Insurtech revolution,” he added. “MoMo E-wallet is one of Liberty’s critical strategic partners in the digital era.”
In order to catch up with the technology of other insurance companies, Liberty has invested heavily in its IT systems, including a three-tier data center (the highest standard in evaluating the infrastructure capacity of a data center), setting up a 24/7 customer service center, by Avaya, the world’s largest provider of customer service centers, and introducing claims automation.
As a result of these innovations, Liberty can guarantee consistency, transparency, and security in all transactions between customers and partners. In 2010, Liberty also became the first company to distribute online insurance, at libertyinsurance.com.vn, and to issue online insurance certificates.
“Insurtech is a crucial trend in the digital age,” Mr. Duc went on. “As every insurance company moves on the evolution of technology, Insurtech is not just a playground for the fast-paced. Inheriting the vision and experience of the parent corporation, Liberty Vietnam is committed to working together to take long-term, solid steps. For that reason, working with partners who share common goals and mission is critical.”
Mr. Nguyen Ba Diep, Vice Chairman of MoMo, said that from booking flight, train, and bus tickets, MoMo users can now also obtain travel insurance for their trip - a complete experience - via the electronic wallet.
“In 2018, MoMo will focus on developing within Vietnam’s $20-billion tourism market,” he said. “Customers can not only book flights directly on the MoMo app, they can now also purchase travel and health insurance. We are delighted to build the partnership with Liberty, a well-known insurance company for a hundred years and a pioneer in providing insurance products in conjunction with fintech units such as MoMo.”
“With the distribution of Liberty TravelCare insurance on MoMo, it takes customers only one minute to be able to purchase travel insurance,” he went on. “We hope this new method of providing insurance will enable people to easily and quickly access the service, bringing joy and peace of mind on every journey.”
Kyoei Steel cancels expansion project in northern Vietnam
Kyoei Steel from Japan recently announced that it had cancelled the expansion of its steel plant in the northern province of Ninh Binh in order to focus on investing in Vietnam Italy Steel JSC (VIS).
In September 2011 Kyoei Steel established Kyoei Steel Vietnam Co., Ltd. (KSVC) in Ninh Binh. KSVC started to operate in March 2012 with the designed production capacity of 500,000 tonnes per year. At present, Kyoei is holding 60 per cent in KSVC, Metal One Corporation has 20 per cent, and Marubeni-Itochu Steel Inc. 40 per cent.
The cancellation at KSVC is meant to add a 500,000 metric tonnes per year rebar and wire rod rolling mill and a 500,000 metric tonnes per year steel production plant.
“The details of the investment in VIS have not been worked out yet, but VIS' steelmaking capacity may be expanded to 500,000 metric tonnes per year,” a Kyoei official said.
"We will be able to expand our business through VIS as we will be able to start supplying rebar for Japan's ODA projects through it. Thus, cancelling the expansion project at KSVC is not negative, but rather a move to boost our business," she added.
According to platts.com, the decision follows the purchase of 33.2 million shares or a 45 per cent stake in VIS to increase its holding to 65 per cent.
The deal is expected to take place on the stock exchange from May 10 to June 6. VIS’ share is valued at VND34,400 ($1.51), thus Kyoei may spend at least VND1.14 trillion ($50.06 million) on the deal.
The focus on investing in VIS raises concerns that Kyoei will sooner or later withdraw from the long-delayed high-quality rolling steel mill at Khanh Phu Industrial Zone (Ninh Binh province).
The mill was expected to come into operation in 2016 with the capacity of over 800,000 tonnes. However, until 2016, the project moved at a snail’s pace, thus the Ministry of Industry and Trade (MoIT) warned cutting it from its new steel master plan to 2020 with vision to 2030.
At the time, the Japanese steelmaker confirmed its determination to revive the delayed steel mill, while simultaneously affirming that it would pour $200 million into the project.
Construction was expected to start by the end of 2017, with the rolling mill slated to come online in 2019 and the steelmaking facility in 2020. However, to date, the mill remains in limbo.
Meeting stricter requirements of foreign investors to promote FDI
Vietnam posted a total foreign direct investment (FDI) capital of US$8.06 billion in the first four months of this year, including newly registered capital, supplemented capital and capital contribution and share purchases by foreign investors, according to the statistics released by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
The Republic of Korea (RoK) remained the leading investor in Vietnam, with a total registered capital of US$2.32 billion in the four-month period, accounting for 28.7% of the total FDI capital in Vietnam. Japan came in second with a total registered capital of approximately US$1.29 billion, occupying 16% of Vietnam's total FDI capital.
So far, Vietnam has attracted over US$60 billion worth of FDI capital from the RoK and US$50 billion worth of FDI capital from Japan. Besides making the most of the established trade, invest and tourism promotion channels, it is necessary to encourage new ideas and initiatives to attract more FDI from these two countries.
In addition, Vietnam should map out a strategy to attract investment from other potential markets in order to diversify and enhance the quality of FDI inflows.
According to experts, the US and the EU remain the world's largest FDI markets with many potential investors possessing modern technology and services which are conformable to the investment attraction directions of Vietnam.
However, investments in Vietnam by the US and the EU have yet to meet the FDI capital potential that the two countries have invested in other countries in the world.
The US has registered to invest nearly US$12 billion in Vietnam, while the two-way trade revenue between the two countries has reached over US$50 billion. 24 out of 28 EU countries have invested a mere US$24 billion in Vietnam, less than half of the RoK's FDI in Vietnam.
The flow of FDI capital from the US and the EU in Vietnam has thus far not matched the potential and expectations of both sides. According to experts, when the free trade agreement (FTA) between Vietnam and the EU is signed, there will have plenty of opportunity to increase FDI from the EU into Vietnam.
Regarding the US, a bilateral trade agreement with Vietnam or the possibility of the US’s return to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will also provide an opportunity for Vietnam to attract more investment from the country. But the matter is whether Vietnam can take advantage of these opportunities.
In fact, foreign investors, especially those from the US and the EU, often require a transparent and consistent investment and legal environment as well as convenient administrative procedures.
Therefore, the prospect of attracting more FDI from the US and the EU depends on Vietnam’s fulfilment of the investors' requirements for an open, transparent and predictable legal system and the strict requirements of the world's leading multinational corporations on intellectual property, anti-corruption, and law enforcement, in addition to a facilitative administrative apparatus.
High prices make home ownership harder for low-income people
A land price upsurge of up to 70% has made it tougher for low- and middle-income people in HCMC to own homes, according to information given at a seminar on May 18.
At the seminar on property prices held by the Saigon Times Real Estate Club and the Saigon Times Group at InterContinental Saigon Hotel in HCMC, experts and representatives of property firms said land prices in districts 2, 9 and Thu Duc had soared 20% to 70% over the past one year. In some areas, land has even marked up two and three-fold.
Su Ngoc Khuong, investment director at Savills Vietnam, attributed the recent land price rise to price manipulation by brokers. Meanwhile, the domestic demand for houses is high, with two to three million migrants in HCMC in dire need of homes.
However, there are more housing products on the market but workers often find it impossible to buy them.
The demand for land and housing in districts 9 and 2 has increased sharply, prompted by better traffic connectivity with neighboring Long An, Binh Duong and Dong Nai provinces.
Phan Truong Son, head of the Housing Development Division under the HCMC Department of Construction, said land and housing price increases of 5-10% are acceptable but a surge of up to 70% is way too much and might have been manipulated by land brokers.
Phu Dong Group general director Ngo Quang Phuc shared Son’s view, saying workers would find it harder to buy houses even if prices range from VND1.5 billion to VND2.5 billion per unit.
High site clearance compensation rates have made properties more expensive as land currently accounts for 40-60% of the cost of a housing development project.
Therefore, Khuong called for authorities to find ways to help investors cut site clearance compensation costs. If land prices are reduced, affordable houses could be developed.
Authorities should provide capital, make land more affordable and simplify procedures for investors to develop housing projects in Binh Chanh, Can Gio and Hoc Mon districts where land is plentiful, Khuong added.
Nguyen Minh Quang, director of marketing and business at Nam Long Investment Corporation, told the seminar that the corporation has cooperated with foreign investors to build homes for middle-income people.
In the past, when handing over homes to buyers, Nam Long would have to recover 70% of the cost of a home but the current percentage is just 50%, thus making it possible for more people to purchase homes.
Son of the HCMC Department of Construction said 476,000 households in the city have yet to own homes, so the demand for homes, especially those worth VND1-2 billion, is huge.
The central Government and HCMC should issue preferential policies for investors involved in social housing development.
Son said the city should clear land in outlying districts and hand it over to housing developers by 2020.
HCMC has set a target of having a total of 40 million square meters of new housing, including social one.
Some major foreign brewers have withdrawn from the Vietnamese market after they have poured huge capital into the industry, the chairman of the Vietnam Beer, Alcohol and Beverage Association (VBA) was quoted by Nguoi Lao Dong newspaper as saying.
Speaking at a seminar on the beverage industry held in HCMC on May 18, Nguyen Van Viet said that due to fierce competition, foreign firms such as San Miguel and Foster’s have left Vietnam though it is Asia’s third biggest beer consumer after Japan and China.
Data of the General Statistics Office of Vietnam showed that in 2014 each Vietnamese aged over 15 consumed 4.4 liters of pure alcohol a year while a report of the World Health Organization ranked Vietnam 94th among 194 countries.
Vietnam last year consumed over four billion liters of beer, meaning each person drank 40 liters of beer a year, double the amount in two previous years.
The beer industry will turn out about 4.1 billion liters in 2020, 4.6 billion in 2025 and 5.5 billion in 2025, said Viet.
Data of the Ministry of Industry and Trade indicates that the local beverage industry could grow 5% in 2018. This is also the average growth rate of the sector in the past five years.
Around 10 years ago, the sector recorded annual growth of more than 10%.
Heineken Vietnam Brewery and Saigon Beer, Alcohol and Beverage Corporation are the dominant brewers in Vietnam, according to Viet.
Honda joins Vietnam’s superbike market
Honda has officially entered the Vietnamese big-motorcycle market by opening the first superbike shop in HCMC’s District 3.
Located at the corner of Pasteur and Vo Thi Sau streets, the two-story shop has a total area of over 700 square meters and features areas of product display, services, superbike club, bike accessories, and repair.
The shop will initially sell nine models of superbike, including naked, supersport, cruiser, adventure and touring, with suggested prices ranging from VND172 million to VND1.2 billion per unit. Customers can buy bikes imported from Thailand (CB500F, CB650F, CBR650F, Rebel 500 and CB500X) or orders bikes (CB1000R, CBR1000R Fireblade, CBR1000RR Fireblade SP and Goldwing) from Japan.
Honda Vietnam still sells Rebel 300 motorcycles at its authorized dealers and does not have plans to sell motorcycles of below 500cc at this shop.
Compared to other bike shops, prices of similar superbikes offered by Honda Vietnam are lower.
Though it is a latecomer, Honda has developed a superbike sale system in Vietnam. Yamaha’s big and normal bikes are being sold together.
After the first store in HCMC, Honda will open the second in Hanoi.
Class A2 driving tests for bikes of over 175cc have been opened to all citizens, thus fueling the domestic demand for big bikes.
The domestic high-capacity bike market offers both opportunities and challenges as big bikes are only suitable for certain riders and preventively priced.
However, according to experts, while the bike market has recorded slower growth in recent years, high-capacity bikes may become a niche market for producers.
Toshio Kuwahara, general director of Honda Vietnam, said the bike shop in District 3 meets 5S standards (sales, service, spare parts, safety riding and social activities).
Having been operational for over 20 years in Vietnam, Honda Vietnam has become a leading maker of bikes and cars. It has three bike factories which can manufacture 2.5 million units per year and one auto factory with an annual capacity of 10,000 units.
Quang Nam to promote agricultural tourism
The tourism and agriculture sectors in the central province of Quang Nam will jointly develop agricultural tourism products with farmers acting as tour guides, according to a seminar on ecotourism development in association with agriculture.
The seminar was jointly held by Quang Nam authorities and Nong Thon Ngay Nay newspaper in Hoi An City on May 18.
Agricultural ecotourism products in Quang Nam which have brought huge revenue and attracted many tourists, especially those from Europe and Northeast Asia, include tours which take in Bay Mau coconut forest in Cam Thanh Commune, the ancient city of Hoi An, and the community eco-tourism villages of Tra Nhieu and Triem Tay in Dien Ban Town.
Tourists can cycle, take a boat ride, travel on coracle exploring coconut forests and stay at hotels near rivers and paddy fields.
Quang Nam vice chairman Le Tri Thanh said agro-tourism products in the province attracted a huge number of visitors and brought total revenue of VND9.2 trillion (US$403.7 million) last year.
Ecotourism products and services have made Quang Nam an appealing destination for visitors, thus raising incomes of farmers there. Farmers will work as tour guides of foreign visitors who are interested in getting hands-on experience in farming activity and joining folk games.
Nguyen Quy Phuong, head of the Travel Department under the Vietnam National Administration of Tourism, said many new agricultural tourism products have been launched nationwide such as tours to Tra Que vegetable village in Hoi An City, Quang Nam Province on the central coast; the Mekong Delta in southern Vietnam; and stunning terraced fields in Mu Cang Chai, Sa Pa, Pu Luong and Mai Chau in the northern upland.
But Phuong called for a further improvement of current agro-tourism products services and infrastructure in many eco-tourism sites.
At the seminar, representatives of Danang and Lam Dong introduced their plans to develop agricultural tourism together with ecotourism and community tourism, incorporate eco-tourism in local development plans and encourage local people develop agricultural tourism models.
A representative of the Lam Dong Province Department of Culture, Sports and Tourism said the province has achieved success in agricultural tourism development thanks to its immense tea, coffee, vegetable and flower farms.
Lam Dong is offering tours which help tourists learn about and participate in hi-tech agricultural production processes, enjoy fresh vegetables and fruits and join in cooking classes to make dishes from farm produce. The provincial government has recognized 22 agro-tourism models.
According to the Danang Department of Agriculture and Rural Development, organic agro-tourism will help exploit tourism potentials of Danang and the central and Central Highlands regions as a whole. Agro-tourism development will in turn boost growth of organic agricultural production.
Danang has had six organic paddy fields with a combined area of nearly150 hectares and an average capacity of 65-75 quintals of rice per hectare.
Ion tech-based product bound for foreign markets
Ewater Engineering Co Ltd has exported Ewater, a product which can be used to remove residues in industrial boilers without relying on chemicals, to Malaysia and Indonesia, said a representative of the company.
At a conference on technology jointly held on May 18 by the Center for Science and Technology Information and Ewater Engineering Co Ltd, Le Trung Hieu, head of engineering at the company, said Ewater is a cost- and water-efficient and environmentally friendly technological solution which allows residue treatment without using chemicals. Therefore, using the product helps cut energy consumption by 5-30%.
Hieu said Ewater has been installed at some 300 facilities nationwide and the company has also sold it to Malaysia and Indonesia.
Ewater can clean up boilers completely in three months, boosting the efficiency of boiler systems and considerably reducing energy consumption, Hieu noted.
He added Ewater is also good for boilers of which residues and rust used to be removed by the use of chemicals.
Overseas investment and immigration exhibition set for early June
VnOPI Fair, a major exhibition of overseas properties, investment and immigration, will be held by Saigon Central Development Co Ltd in HCMC between June 1 and 3.
Over 40 organizations known as real estate developers and overseas immigration consulting firms will attend the first such fair to provide visitors with information about investment and immigration in countries such as the U.S., Australia and Canada.
Than Thanh Vu, chairman of the organizing committee, said VnOPI Fair had been planned for two years given the rising demand of many Vietnamese for overseas investment, immigration, education and career consulting services.
The event will help link up Vietnamese customers and project development and consulting enterprises, helping local customers get more information about overseas investment and immigration.
Vu stressed VnOPI Fair, which will also be organized in Hanoi City in November, is slated to become an annual event.
Conference highlights CPTPP’s commitments, tips for businesses
The Vietnam Chamber of Commerce and Industry (VCCI) and the Ministry of Industry and Trade co-hosted a conference in Hanoi on May 22, focusing on basic commitments of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and recommendations for businesses.
Participants held that the CPTPP’s strict regulations will be requirements but also create an opportunity for Vietnam to speed up its reform, improve institutions, and fully implement its commitments to the pact.
Deputy Minister of Industry and Trade Tran Quoc Khanh said the CPTPP will give a boost to international trade and investment as well as intra-bloc trade activities.
He said it is the highest-standard agreement that Vietnam has joined to date, which will be enforced in the near future.
The point is what Vietnamese firms should do to prepare themselves to capitalise on its benefits and reduce related risks, the official noted.
Luong Hoang Thai, Director of the Ministry of Industry and Trade’s Multilateral Trade Policy Department, said the CPTPP will drive the Government’s reform progress and build the image of Vietnam as a supporter of free trade in line with international law.
The agreement will also help Vietnam open its market, increase investment, boost international cooperation, create jobs, and ease poverty, Thai added.
VCCI Chairman Vu Tien Loc recommended Vietnamese firms update information about the regulations on product origins and standards and customers’ demand in CPTPP member markets, as well as the agreement’s impacts on different types of commodities.
Loc said he believes the deal will offer opportunities for Vietnam to attract investment, promote international cooperation, boost exports, and complete its institutions.
After the US withdrew from the Trans-Pacific Partnership (TPP), the predecessor of the CPTPP, in 2017, the remaining 11 countries, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, agreed to maintain the deal and rename it CPTPP.
The CPTPP, which was signed in Chile on March 8, is set to take effect in early 2019 after it is ratified by at least six member countries. Its member economies make up about 13 percent of the global GDP.
Vietnamese, Thai publishers seek partnerships
The Thai Embassy in Vietnam and the Publishers and Booksellers Association of Thailand co-organised a networking event in Hanoi on May 22 to connect Vietnamese and Thai publishing companies.
Trade Counselor at the Thai Embassy Pannakarn Jiamsuchon said the event aimed at linking publishers from the two countries, helping them exchange printing technologies for better quality.
The official expressed her hope that a similar event with larger scale will be held next year and more Thai publications will be introduced to Vietnamese readers.
Suchada Sahasakul, President of the Publishers and Booksellers Association of Thailand, said this was the first networking event between publishing companies of the two countries and there remain great potential for cooperation in this field.
She added that Vietnamese readers like Thai children books and novels, of which many have been adapted into films.
According to her, 11 Thai firms attended the event, including Praphansarn Publishing Co. Ltd, one of the most prestigious publishers in Thailand with a 60-year development history.
The Publishers and Booksellers Association of Thailand said it plans to organise exchanges for Vietnamese and Thai writers and artists to boost mutual understanding in culture, which in turn could give a boost to bilateral trade.
Vietnamese firms to attend food fair in Thailand
Some 30 Vietnamese enterprises will introduce Vietnam’s natural and organic products, including dried fruits, rice, processed coconut, and milk, at the upcoming Thaifex - World of Food Asia.
The Thaifex is an international trade fair and conference for food, beverage, catering, food technology, hospitality service and retail and franchise in Bangkok, Thailand from May 29-June 2, according to the Business Association of High Quality Vietnamese Products.
Vu Kim Hanh, Chairwoman of the association, said the event will offer a good change for Vietnamese enterprises to promote their products and technologies, seek partners and update the latest information on consumption and market trends related to the food industry in the world.
The Vietnamese businesses will also exhibit products bearing geographical indications such as Phu Quoc fish sauce, Binh Thuan dragon fruit, Quang tri pepper and, Binh Phuc cashew nut.
The event will include a trade connection programme in the form of business-to-business matching (B2B Matching), which is expected to promote connection between Vietnamese enterprises and international firms.
A three-day cooking show programme will be hosted by the Vietnamese delegation, displaying over 10 Vietnamese dishes, which use signature ingredients from localities nationwide.
The association will arrange an international workshop which is expected to discuss the overview of ASEAN market and potential for intra-block trade cooperation, development and commercialization of geographic indication products; as well as initiates to improve the quality of Vietnamese farm produce and food and ways to help Vietnamese foods enter international markets.
Thaifex 2018, jointly hosted by the Department of International Trade Promotion and the Thai Chamber of Commerce, is expected to attract about 60,000 visitors worldwide and about 2,500 food exhibitors from 40 countries and regions over the world.
This forum can help connect visitors with exhibitors, thus improving competitiveness of firms for their sustainable and effective operation in the global market.
Exports to US need to focus on processed products: experts
Experts at the recent Vietnam-US Trade Forum in Ho Chi Minh City have suggested Vietnamese enterprises step up the export of processed goods of high added values to the US, apart from raw products.
US investors have highlighted positive prospects of the Vietnam-US trade ties, saying Vietnam’s exports to the US have continuously increased over the past years.
According to the Vietnamese Ministry of Industry and Trade (MoIT), the US has remained Vietnam’s leading trade partner over the past decade. In 2017, Vietnam exported 41.6 billion USD worth of goods to the US, making up more than 20 percent of the country’s total export revenue.
Two-way trade expanded 47 times, from 220 million USD in 1994 when the US lifted economic embargo against Vietnam to 1.4 billion USD in 2001, one year before the Vietnam-US bilateral trade agreement took effect, and 50.81 billion USD in 2017.
Currently, Vietnam ranks 12th among exporters to the US and the 27th among the importers of US goods. The Southeast Asian nation is the US’s 16th largest trade partner.
MoIT Deputy Minister Do Thang Hai said the Vietnamese and US economies are supplementary. He explained that as a developing economy, Vietnam has great demands for imported machines, high-tech equipment, technology and materials in service of agricultural production. Meanwhile, the US is in need of typical farm produce and products that Vietnam has a competitive edge in production.
However, he pointed out that Vietnam mainly ships traditional products like garments-textiles, leather and footwear, timber products, machines and electronic equipment to the US. Products of high added values or luxury consumer goods make up only a small share of the country’s total exports to the US.
But to increase the shipment of products with high added values, a major challenge to Vietnamese exporters is how to satisfy standards set by the US, Hai said, adding that the US law system has imposed multiple strict regulations for imported goods, at both federal and state levels.
Besides, the US has increased regulations and standards regarding food quality and safety, and product origin, especially to agro-forestry-fishery products under its recent new trade policy, the official said.
Virginia Foote, from the American Chamber of Commerce (AmCham) in Hanoi, suggested Vietnamese enterprises increase added values for export items to the US, possibly by partnering with local businesses.
Regarding the US barriers to the fishery sector, Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), said his association always accompanies domestic seafood businesses to employ concrete measures in order to ensure food safety and quality of products.
Hai said the MoIT encourages Vietnamese enterprises to join hands in developing supply chains to the US, noting that his ministry is always ready to support them.
He added that linkage and cooperation among enterprises are also important in dealing with trade lawsuits.
Vingroup targets 50 percent profit growth
Private business conglomerate Vingroup is seeking shareholders’ approval for targets of 34 percent and 50 percent increases in revenue and net profit, respectively, this year.
In the documents sent to shareholders prior to its annual shareholders meeting, expected on May 31 in Hanoi, the board set a total revenue target of 120 trillion VND (5.3 billion USD) for the year, and a net profit of 8.5 trillion VND.
In the first quarter, the company earned 29.1 trillion VND in revenue and over 1 trillion VND in net profit, up 84 percent and 70 percent year-on-year, respectively.
Despite the news, Vingroup’s stock declined by nearly 7 percent on May 21 to close at 114,400 VND (5.02 USD) per share on the Ho Chi Minh Stock Exchange.
Vingroup is also planning a big dividend with a total rate of 21 percent, of which a 10 percent will be paid by stocks for 2017’s business results and another 11 percent will be paid in cash, being extracted from accumulative net profits as of the end of the first quarter of 2018. Total payment value will be more than 5.54 trillion VND, expected to be paid in the second quarter of 2018.
In addition, the board of directors will also present to the shareholders a plan to lift the foreign ownership limit to 49 percent after removing some divisions of the company.
Shareholders will authorise the board to review and make a list of restricted business lines, as well as carry out the necessary procedures to change the corporate business registration.
Foreigners currently hold about 10.2 percent of Vingroup’s capital according to data on the financial website vietstock.vn as of December 31, 2016.
This year, VIC is planning to intensify its operations in all major fields including real estate, travel and entertainment, retail, healthcare, education and agriculture. At the same time, the company will also make further investment in the automobile industry with the ‘Vinfast’ brand.
The company will strengthen its presence in provinces nationwide, especially in the development of Vinmart and Vinmart retail chains. Regarding the quality of services, the company is still aiming for international five star standards, upgrading the infrastructure of the Vinpearl entertainment system and the Vinmec hospital system, enhancing the training quality of Vinschool and Vinuni.
In 2017, consolidated revenue of VIC reached 89.3 trillion VND, up 55 percent year-on-year, net profit touched 5.6 trillion VND, up 27 percent over the previous year. Earning per share (EPS) was 1,816 VND.
Hau Giang uses more RoK biological products in cultivation
The Republic of Korea (RoK) organisation for agricultural technology transfer and trade (FACT) signed an agreement with the Mekong Delta province of Hau Giang to increase the use of biological products of the RoK for growing pineapple, pomelo and mango.
FACT will provide 17,000 USD worth of 20 biological products to the locality.
Lee Won Og, FACT Director said that in the future, the organisation will work with and assist Hau Giang in personnel training, equipment and technology transfer to help the locality’s agricultural sector develop and improve incomes of farmers.
Meanwhile, Truong Canh Tuyen, Vice Chairman of the Hau Giang People’s Committee said Hau Giang hopes to receive technology to produce the biological products, thus enhancing its agricultural production value and expanding ties with FACT.
In 2017, FACT ran a cooperation project with a village of Vinh Vien commune, Long My district, under which it supplied 13 biological products and some technological equipment for rice cultivation in two crops on an area of 14 hectares at a cost of 9,000 USD.
Le Hoang Xuyen, Director of the management board of the high-technology agriculture park of Hau Giang said FACT was one of the first organisations to cooperate with and invest in the park since the park was formed in August 2012.
The park has a total area of 5,200 hectares in Long My district, with production area of 5,000 hectares.
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