Nawaplastic still hungry for Binh Minh Plastic shares

Owning a dominant stake in Binh Minh Plastic (BMP) did not quench Nawaplastic Industry Co., Ltd. (Nawaplastic)’s thirst for BMP shares.

Most recently, Nawaplastic registered to buy an additional 1.17 million BMP shares to increase its holding to 44.525 million shares, equalling 54.39 per cent of the charter capital.

The transaction is expected to occur between June18 and July16.

The registered share volume is the remaining part of the 2.86 million shares that Nawaplastic failed to buy during previous transactions.

Notably, Nawaplastic registered to buy 2.86 million BMP shares during transactions on May 14-June 12, however, the Thai investor ended up buying 1.69 million of the registered shares as BMP did not match Nawaplastic’s target price.

BMP manufactures and trades civil and industrial products made of plastic and rubber. The company also designs, manufactures, and trades in plastic moulds for the casting industry; produces and trades machinery, materials, and sanitation equipment for the construction industry; provides interior decoration and water supply and drainage services; and offers appraisal, among others.

According to its financial statement published at the annual shareholders’ meeting on April 20, in the first quarter, the firm reported VND663 billion ($29.06 million) in revenue and VND105 billion ($4.6 million) in pre-tax profit, up 80 and 85 per cent on-year.

BMP expected that in the first half of this year, it will acquire VND1.86 trillion ($51.5 million) in revenue and VND275 billion ($12.05 million) in after-tax profit, equalling 43 and 44 per cent of the whole-year targets.

Sticky rice sees price reduction

The prices of Vietnam’s sticky rice are facing a downward trend due to its over-supply and dependence on a single large market, according to the Department of Farm Produce Processing and Market Development under the Ministry of Agriculture and Rural Development (MARD).

Although it is now the beginning of the harvest of the summer-autumn crop, sticky rice farmers have few orders and few prospective buyers.

The statistics of Vietnam Food Association (VFA) showed that, in 2017, Vietnam exported 1.4 million tonnes of sticky rice, mainly to China.

Last year, as Vietnam was expanding sticky rice production, China also quickly increased sticky rice cultivation. The current inventory of Chinese enterprises is quite large; therefore, it is impossible to promote the export of sticky rice to China in the near future, a sticky rice exporter to China revealed.

Due to the declining demand for sticky rice, its price declined sharply from 530-540 USD per tonne in January-February to 460-470 USD at the moment. The domestic sticky rice price also fell sharply compared to other types of rice.

In contrast, the consumption of fresh rice IR50404 in the last winter-spring crop in the Mekong Delta has been quite "smooth". Domestic supply is not sufficient to meet all export contracts.

Therefore, prices of IR50404 rice in this region have continuously risen, setting the highest record in recent years. In some periods, the price of fresh rice IR50404 in the field was purchased by traders at a price of nearly 6,000 VND per kg, up 1,000 VND per kg compared with the peak price of 2017. The export price of this type of rice also rose significantly, higher than the price for rice from Thailand, India and Pakistan.

Looking at the contrast between the two types of rice, it is clear that the current crop structure in the country’s largest granary is not yet flexible enough to quickly adapt to meet market demands.

Exporters said in order to avoid the oversupply of sticky rice and the undersupply of other rice types, MARD should coordinate with the Ministry of Industry and Trade (MoIT) and the VFA to study the import market and the demand for each type of rice. Then they can provide information to farmers, enterprises and localities to make adjustments before the planting season, they suggested.-

Bright prospect predicted for agricultural products’ export

Good prospect is forecast in the export of several agricultural products, including rice, in the rest of the year as demand in importing markets has shown optimistic signs, according to the Ministry of Agriculture and Rural Development (MARD).

The ministry predicted that domestic rice prices will continue to stay high until the end of June 2018, buoyed by hope for resuming exports to the Philippines.

According to a report by the General Department of Vietnam Customs, in the first five months of 2018, rice shipments overseas rose 25.7 percent in volume and 42.6 percent in value, with prices picking up 13.4 percent over the same period last year.

Statistics showed that 452,000 tonnes of rice were shipped abroad in May for 347 million USD, pushing the five-month rice export volume to 2.66 million tonnes with value of 1.45 billion USD. China was still the biggest market of Vietnamese rice.

Vietnamese rice quality has gradually approached international standards, prompted by the shift in world demand for rice of higher quality. According to the MARD, importing countries now prioritise the import of fragrant and Japonica rice varieties. Currently, African countries are also increasing rice imports, creating opportunities for Vietnamese firms in the markets.

Meanwhile, exports of aquatic products in May fetched 700 million USD, raising total value in the first five months of 2018 to 3.1 billion USD, up 11 percent over the same period last year.

Particularly, export volume of tra fish in May was estimated at 104,000 tonnes, a year on year rise of 11.6 percent, marking a record growth rate in many years.

The US, Japan, China and the Republic of Korea were the top markets of Vietnamese aquatic products, which consumed over 50 percent of total exported volume.

High frowth was seen in many markets, including the Netherlands (60 percent), China (27 percent), the UK (27 percent), Germany (26 percent), and the Republic of Korea (21 percent).

At the same time, chicken meat is also among products with high hope for growth in latter half of the year. Since the beginning of 2018, export volume of the product expanded 3 times compared to that in 2017.

Hanoi licenses $5.4 billion worth of FDI projects

Hanoi granted investment certificates and awarded decisions of investment agreements to 71 projects with a total registered investment capital sum of VND397.33 trillion (over $17.65 billion) at the Hanoi 2018-Investment and Development Cooperation conference held on Sunday.

The projects included 11 foreign-invested projects totalling at VND130.06 trillion ($5.4 billion) in capital and 60 domestically-invested projects worth VND267.27 trillion ($11.87 billion).

What is more, the conference included the ceremony of exchanging Memoranda of Understanding on investment cooperation between Hanoi, neighbouring cities and provinces, and the Management Authority of Hoa Lac High-Tech Park, as well as enterprises in the fields of smart city, education development, high-tech agriculture, healthcare, tourism, and environment.

The Hanoi 2018—Investment and Development Cooperation conference is the third consecutive annual edition, showing Hanoi’s strong commitment to improve the business climate.

The event attracted the participation of more than 1,500 delegates, including leaders of the government, ministries, central agencies, and cities of the Northern Key Economic Region, the Red River Delta, as well as representatives of diplomatic offices, international organisations, and domestic and international enterprises.

Over the past two years, Hanoi’s business climate has improved much, boosting its standing on the provincial competitiveness index (PCI) and a much enhanced administrative system.

Hanoi’s economy has maintained a steady growth of 7.15 per cent in 2016, 7.31 per cent in 2017, and 7.07 per cent in the first six months of 2018.

“In the months to come, Hanoi will prioritise calling for investment in high-tech, clean energy, housing projects for workers, waste treatment plants, high-tech agriculture, universities, vocational schools, and the manufacturing and supporting industry,” said Nguyen Duc Chung, Chairman of the Hanoi People’s Committee.

As of June 15, 2018, Hanoi licensed 4,300 foreign-invested projects with the total registered capital of $33.38 billion. The sum included $12.46 billion attracted in 2016, 2017, and in the first half of 2018, making up 59 per cent of the total FDI attraction in 1986-2015.

In the first half of 2018, Hanoi lured in $5.91 billion worth of FDI, becoming the most attractive destination among the nation’s 63 cities and provinces.

Vietnam sees more global hotel brands

Vietnam has witnessed an influx of international hotel brands and hotel management companies in the last few years, according to property consultant Savills Vietnam. 

The five-star Vinpearl Phú Quốc Resort on Phú Quốc Island. More and more hospitality brands and hotel operators are coming to the booming Vietnam market.

From 30 hotels with international brand names in 2010, the number had increased to 79 at the end of last year.

There has been a particularly big jump this year with recent announcements by Mandarin Oriental and Movenpick in HCM City and Best Western Premier in Quảng Bình and Long Hải.

There have also been new brands entering the market in the last three years, including Ozo and X2 Vibe (Hội An), Hilton’s Double Tree (Hạ Long, Vũng Tàu and Hà Nội), Four Seasons (Quảng Nam and Hà Nội), Oakwood (HCM City), Glow (Đà Nẵng), and Mai House (HCM City).

Compared to a few years ago projects of higher quality, focus on international design, trust in foreign hotel management companies and need to create a competitive advantage have all increased significantly.

Mauro Gasparotti, director of Savills Hotels Asia Pacific, said a large increase in interest among operators in the country in the last three years has resulted in the expansion of the hospitality market.

“The number of international operators is expected to grow in the coming years along with local management companies.”

Operators are launching new brands to target all kinds of clients including millennials and health-conscious travellers, he said.

Việt Nam is a promising market for them to introduce focused brands since people travelling here are largely diversified, he said.

Vietnamese investors are still new to hospitality products, but with a large amount of supply coming, there would be rapid learning for some of them and more quality assets are expected to come up, he said.

Savills expects more than 30,000 rooms to be added by the end of next year.

Việt Nam has also experienced a strong growth in condotels in the last 2 years.

It is expected that within two years condotel and second home products will account for 65 per cent of new hotel supply, and one in every four will be categorised as condotels.

A condotel is actually much more complicated than a pure hotel possessing features of both a house and a hotel, and thus requires more support in terms of management.

Most condotels are managed by their developers, and some lack experience in hotel management.

However, a few have begun to create brands and engage management companies, mostly in the case of complexes with a hotel or resort component.

The number of international tourist arrivals in Vietnam in the first five months of this year was 6.7 million, up 27.6 per cent year-on-year, according to the Vietnam National Administration of Tourism.

Tourism revenues are estimated at VNĐ260.2 trillion (US$11.41 billion), a year-on-year increase of 22.6 per cent.

The strong growth of the tourism sector has also given a boost to the hospitality industry.

HCM City to host smart-tourism TPO Forum

As many as 130 delegates from six countries will share experiences about smart tourism at the 8th Tourism Promotion Organisation for Asia Pacific Cities (TPO) Forum from June 21-22 in HCM City.

The biennial forum, with the theme of “Smart Tourism”, is being held for the first time in Việt Nam, according to Nguyễn Thị Ánh Hoa, deputy director of HCM City’s Department of Tourism.

Representatives from 25 member cities will give presentations about their smart tourism promotions and services, Hoa said at a press meeting held in HCM City on Friday (June 15).

Hoa said the event is a great opportunity for the city’s tourism sector to develop new ideas and strategies for smart tourism. 

As the host city of the TPO forum, HCM City will also have a chance to promote the country’s tourism industry as well as strengthen cooperation with other member cities of TPO.

The forum will include city leaders, policymakers and officials in the tourism sector from member cities, according to Shin Yeon-sung, Secretary General of TPO.

Forum delegates will discuss the use of technology in tourism, which is now in an early stage in TPO member cities.

Various programmes will be held in conjunction with the main events of the forum, including a TPO travel-trade and smart-tourism product exhibition that will promote tourism brands and resources of member cities via one-on-one consultations with major travel agencies and tourism-related institutions.

The 31st TPO Executive Committee Meeting and the TPO Bilateral Meeting will also be held during the event.

The members of the Executive Committee will discuss issues related to the operation of the TPO such as budget plans, joint projects, and the admission of new members.

The Bilateral Meeting for TPO Member Cities will provide a chance for one-on-one talks between member cities in a more personal setting and will enhance mutual cooperation and exchange.

The Tourism Promotion Organisation for Asia Pacific Cities, with 85 member cities and 45 industry members from 10 countries and territories, is an international organisation established in 2002 to promote the exchange and development of the tourism industry in major cities in the Asia Pacific region.

The first forum took place in Busan, South Korea in 2004.

Cashew nut exports rise, but processors face shortage of raw materials     

Viet Nam exported 141,000 tonnes of cashew nuts for a value of U$$1.39 billion in the first five months of the year, a year-on-year increase of 21.4 per cent and 25.3 per cent, respectively, according to the Viet Nam Cashew Association.

With this result, Viet Nam retains its position as the world’s largest cashew processor and exporter for the 13th consecutive year, accounting for 65 per cent of the world’s total cashew export revenue, according to Dang Hoang Giang, the association’s chairman.

Despite having positive export growth, cashew farmers and processing firms enjoyed only 30-35 per cent of profit in the value chain, with the remainder in the hands of international cashew processors and traders, according to Nguyen Duc Thanh, Vinacas’s chairman.

Currently, domestic processors are facing difficulties due to lack of raw materials.

Speaking at a meeting in HCM City on Friday, Giang said the volume of raw material imports had been very low in recent months. As a result, many cashew processing firms had to suspend operations.

In Long An Province, only 12 out of 33 cashew processing firms were operating, he said, adding that 80 per cent of cashew processors, mostly small and micro enterprises, in Binh Phuoc Province had also suspended operations.

Ta Quang Huyen, who is also deputy chairman of Vinacas and director of Hoang Son 1 Company in Binh Phuoc Province, said in the first five months of 2018, Vietnamese firms imported 283,000 tonnes of raw cashews plus 370,000 tonnes from domestic supply and purchases from Cambodia via border trade, totaling 653,000 tonnes.

With the ratio of 4.3 kilos of raw cashew materials offering one kilo of cashew kernels, and 141,000 tonnes of cashew kernels exported in the first five months of the year, all of the 653,000 tonnes of raw materials were processed in the first five months.

"This means that enterprises have no inventory or very limited inventory, so they have to wait for raw materials," he said.

Huyen said Vietnamese firms this year increased processing capacity by 25 per cent over the same period last year, providing the market with a large volume of cashew products. Thus, foreign traders had been able to force them to sell at lower prices.

Cashew prices had fallen this year to $8.2 per kilo from $11 per kilo last year, so processing firms had broken even or taken a loss.

"Cashew nuts can be stored for a year, but because most local processing firms are small scale and have limited financial capacity, they have to sell their products soon after production,” he said.

"Cashew output globally is estimated to increase by 4 per cent this year, while demand for cashew products is expected to increase by 5 per cent. With limited inventory, cashew prices will recover in the coming time,” he added.

Tran Van Hiep, head of the trade promotion board at Vinacas, said cashew prices were expected to increase again.

Companies had strong potential, prestigious brands and quality products, and would be able to overcome this difficult period and continue to develop, he said.

At the meeting, Vinacas announced that the 10th Vinacas Golden Cashew Rendezvous would be held from October 5 to 7 in Ha Long Bay to promote trade and expand markets for cashew products.

Co-organised by the Viet Nam Cashew Association (Vinacas) and Viet Nam Trade Promotion Agency, the largest event in Viet Nam’s cashew sector is expected to attract about 500 domestic and international delegates from 50 countries and territories. 

Da Lat to launch $50-m sheep wool yarn spinning plant     

Da Lat Worsted Spinning Limited Company on Friday held the ground-breaking ceremony for a sheep wool yarn spinning plant in Phat Chi industrial cluster, Tram Hanh Commune, Da Lat City.

The plant has a total investment of US$50 million and is a joint venture project between Germany’s Südwolle Group and Lien Phuong Textiles Industry Company, based in HCM City.

The wool spinning mill has a total area of more than 61,00sq.m, of which, the construction area is some 32,000sq.m.

The designed capacity of the factory is some 4,000 tonnes of yarn per year, while the domestic consumption and export markets account for 50 per cent.

Once in operation, the plant will use imported raw wool to carry out fiber production. Subsequently, the finished wool yarn from the factory will be shipped to textile companies using sheep wool. Currently, there are some 50 garment factories in Viet Nam that use sheep wool, most of them imported from Australia.

Da Lat sheep wool spinning mill will be in operation from April 2019, and is expected to earn more than $100 million in revenue per year. In addition to the production function, the factory will be open to visitors who can watch the whole process of producing yarns from natural wool. The project will contribute to the employment of local workers with the need to employ up to 400 people.

State Treasury raises over VND65.8 trillion from G-bonds     

The State Treasury of Viet Nam has mobilised over VND65.8 trillion (US$2.89 billion) via Government bond (G-bond) auctions at the Ha Noi Stock Exchange (HNX) since the beginning of 2018.

From mid-April till date, the interest rates of different terms of G-bonds have continued to increase. Most recently, an auction at HNX on Tuesday raised VND4.2 trillion worth of G-bonds.

As much as VND2.1 trillion were mobilised from 10-year bonds with an annual interest rate of 4.32 per cent, up by 0.02 per cent against the previous auction on June 6.

Bonds with 15-year and 20-year maturity terms raised VND1.6 trillion and VND500 billion, with annual interest rates of 4.65 per cent and 5.18 per cent, respectively, both up by 0.02 per cent from the previous auction on June 6.

The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes against last year, thanks to an economic growth of more than 6.7 per cent and inflation of below four per cent.

The value of G-bonds issued in 2018 is estimated at some VND180 trillion, with the focus being on long-term maturity and keeping the interest rate at low levels.

G-bonds worth VND159.9 trillion with an average maturity of 13.52 years, up by 4.81 years against 2016, were issued last year.

The bonds had an average annual interest rate of some 6.07 per cent, down by 0.2 percentage points against 2016, according to the Ministry of Finance. 

VN banks actively applying 4.0 technologies     

Vietnamese banks have actively researched and invested in technologies of the fourth industrial revolution, said Nguyen Kim Anh, Deputy Governor of the State Bank of Viet Nam (SBV).

A seminar on the banking sector in the fourth industrial revolution was organised in Ha Noi on Friday.

Some of the technologies applied include cloud computing, big data analysis, artificial intelligence and applications and solutions such as biometric authentication and open application programme interface (open API).

These technologies help to improve operational efficiency and overall customer experience, Anh said.

Banks also utilise distribution channels and access, and interact with users on digital platforms, smartphone applications and social networks. They have applied digital technologies to improve the efficiency of internal systems operations and business process optimisation.

As a result, banks can improve their customer relationship management, helping them to better understand the habits and tastes of their customers to provide the best products and support risk management, said Anh.

Speaking at the event, Deputy Minister of Science and Technology Pham Dai Duong said that banking is one of the leading sectors in applying scientific and technological advances in management and business.

This has created a solid foundation and competitive advantages in the context of digital economy development as the world economic centre gradually shifts from the West to the East.

However, according to Deputy Minister of Science and Technology Pham Dai Duong, besides the advantages there are many risks and challenges when the development of new technologies such as blockchain, big data and artificial intelligence requires the banking industry to adapt its management and product structures.

The risks also come from issues such as cyber security, he said.

Deputy Governor Nguyen Kim Anh also said that the banking sector will face great challenges in completing the legal framework for banking operations in accordance with the context of industrial revolution 4.0 development. Other challenges for banks include changing their governance and business model to adapt to customer trends, alongside threats in cyber security risk prevention and customer information protection.

Economic experts said that to develop rapidly and efficiently in line with the trends of the world, the banking sector should concentrate resources to apply new legal frameworks, and create a good ecological environment for credit institutions and fintech companies to develop financial services in the digital platform to increase the access of people and businesses.

In addition, the experts also advised the sector to invest in IT infrastructure to modernise and automate most of the banking process, and to develop banking services through digital technology.

This requires the resources of not only banks and credit institutions, but also of the Government. The Government needs to invest in the development of national technological infrastructure, and implement incentives to encourage banks to develop financial products and services. 

Foreign trading to be focus of markets     

Local markets are set to feature lots of foreign trading again this week, with foreign investors’ taste likely to change market sentiment after foreign selling pressure had weighed down the stock market for the last two months.

The benchmark VN Index on the HCM Stock Exchange inched up 0.08 per cent to close Friday at 1,016.51 points, a weekly decline of 2.16 per cent.

The HNX Index on the Ha Noi Stock Exchange gained 0.86 per cent to end last week trading at 115.90 points. It fell a total 3.3 per cent week on week.

Last week’s decline was mostly caused by investors’ caution as they anticipated a rate hike decision from the US’s Federal Reserve and quarterly portfolio reviews of exchange-traded funds (ETFs) in Viet Nam.

On early Thursday, the Fed raised its interest rates to a range of between 1.5 per cent and 2 per cent and promised to make two more rate increases in 2018. The decision resulted in a worldwide withdrawal of foreign capital from emerging and frontier markets.

Investor sentiment was also on edge during the final week in which the two ETFs – FTSE Vietnam ETF and VNM ETF – reviewed their investment portfolios for the coming quarter.

As investor confidence was down, average trading liquidity last week also fell comparatively to the previous week.

More than 207.4 million shares were traded in each session of last week, worth nearly VND6 trillion (US$265.5 million). The figures were down 7.1 per cent in volume and 3.6 per cent in value from the previous week.

These factors resulted in a net foreign sell value of nearly VND1.74 trillion on the two local exchanges, focusing on property developers and other large-cap stocks.

Real estate business Vingroup (VIC) topped the must-sell list with some VND1.06 trillion worth of stocks net-sold by foreign investors. VIC was followed by steel producer Hoa Phat (HPG) and another property developer in Dat Xanh Group JSC (DXG).

Since the VN Index hit a historic high of 1,204.33 points on April 9, foreign investors have posted VND23 trillion worth of net purchases in local stocks, including VND28.55 trillion worth of put-through transactions for high-end property firm Vinhomes (VHM) shares when it debuted on the HCM Stock Exchange on May 17.

If the value of VHM share transactions was excluded from foreign trading, foreign investors were net sellers with total net sell value of VND5.46 trillion.

According to Ngo Quoc Hung, an analyst at MB Securities Company (MBS), foreign trading would still be a major concern for the whole market.

The stock market was still in a correction stage and low liquidity in recent sessions may be due to investors who were quiet when ETFs review their portfolios, Hung told tinnhanhchungkhoan.vn.

Net foreign selling last week was a certainty as ETFs sold more than buying in this review period, but it has been questioned if the two ETFs made up the whole net foreign selling last week or if the transactions were carried out by both ETFs and other investment funds, he said.

It would become clear if ETFs created the net sell last week or not if they stop selling this week, and investors should be cautious, Hung added.

Le Duc Khanh, director of market strategy department at PetroVietnam Securities Inc (PSI), said investors should not worry over foreign selling as it only had short-term impacts on the market.

Instead of worrying about foreign selling, investors should look for opportunities in firms that are forecast to report better-than-expected earnings for the second quarter and the first half of the year, Hung said.

Those firms may be property developers, led by Dat Xanh Group JSC (DXG), aviation service provider Taseco Air Service JSC (AST), Duc Giang Chemical and Detergent Powder JSC (DGC) and other firms such as PetroVietnam Power Nhon Trach 2 JSC (NT2) and the Refrigeration Electrical Engineering Corporation (REE).

TRACODI shareholders set $3.4mln profit goal     

Shareholders in the Transport and Industry Development Investment Joint Stock Company (TRACODI) approved this year’s business targets at the company’s annual general meeting in HCM City on Friday.

The company expects to achieve after-tax profits of VND77.1 billion (US$3.38 million) and revenue of VND1.15 trillion ($50.4 million), up 3 per cent and 5 per cent respectively.

Nguyen Ho Nam, the company’s chairman, said manufactured and agricultural products were expected to account for the largest share of sales at around VND450 billion, followed by infrastructure development and real estate with VND390 billion.

Mining was expected to contribute VND300 billion, while the rest would come from labour exports and training, he said.

The targets are based on the impressive results achieved last year, when profit and revenue reached VND74.95 billion and VND1.095 trillion, up 24 per cent and 32 per cent from 2016.

General director Nguyen Thanh Hung said the company would focus on its core business activities: trading in manufactured and agricultural products, infrastructure construction, real estate, mining and labour exports.

In terms of infrastructure construction, it would focus on the BT 830C project and social housing in Long An Province, solar power and property projects under parent company Bamboo Capital, he said.

Shareholders also approved several other proposals, including paying a 10 per cent dividend for 2017 in shares and a 10-12 per cent cash dividend for this year.

Bamboo Capital owns a 50.61 per cent stake in the company. 

Digital economy offers SMEs a bright new world of opportunity

With the application of digital technologies and e-commerce, small and medium-sized enterprises (SMEs) will be able to compete on a more level playing field with major enterprises when accessing the market.

Mr Trinh Duy Hoang, from Vietanalytics Market Research Company said the digital economy has developed rapidly in Vietnam but there remains limited application of digital technologies in small and medium-sized enterprises (SMEs).

According to Mr Hoang, digital technologies have become perceived as ‘strange’ by many businesses and there has still only been a small-scale rollout of these technologies in production activities due to high investment costs.

From the perspective of Mr Hoang, the biggest hindrance for businesses is the human resource factor. Currently, newly-emerging tech start-ups in Vietnam are mostly SMEs which originate from households. Especially, these businesses have not improved the capacity and qualifications of human resources to get access to advanced technologies in the digital economy. 

Mr Hoang emphasized the need for investments in the field of information technology (IT) as several businesses have gained access to digital technologies and data.

He noted that to integrate into the digital economy, relevant agencies need to overcome any hindrances in terms of management thinking for new business forms related to digital technologies.

Many economists say that the digital economy presents a revolution in economic development with the foundation of the Fourth Industrial Revolution, which has provided huge opportunities for SMEs and micro businesses to develop and get access to the global market.

With the application of digital technologies and e-commerce, micro-businesses will gain a more equal footing to compete with big companies in seeking new partners and markets, opening up huge opportunities for future development.

Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry says that the digital economy and e-commerce have brought the world’s markets closer together and helped SMEs to grow while removingbarriers for them when approaching the global market.

“To seize these opportunities, businesses of any scale should become more transparent by applying the global standard management system. The State needs to create a favourable mechanism for the application of digital technologies and must invest in creating infrastructure to facilitate the development of technical infrastructure for the digital economy,” says Mr Loc.

Mr Loc also underlined the importance of restructuring and reforming the entire system of education and training with a focus on human resources in accordance with the requirements of the digital economy. In the coming time, the demands for the workforce in the digital and IT field has increased sharply, leading to a workforce shortage for the digital economy.

Furthermore, several fields face the risks of growing unemployment, such as garment and textile, footwear, and electronics, as they are impacted by the digital economy and the automation process brought about by the Fourth Industrial Revolution. Therefore, businesses need to re-train their workforce to adapt to the jobs available under the digital economy, says Mr Loc.

He also identified measures to ensure safety and protect privacy and confidentiality in business activities and in people’s social lives.

It is essential to devise mechanisms and legal frameworks for the digital economy and to ensure suitable infrastructure to promote creativity and strengthen control over information security as Vietnam’s digital economy is still in its initial stages, notes Mr Loc.

Investor of Trung Luong-My Thuan Expy gets funds for construction

The investor of the Trung Luong-My Thuan Expressway has negotiated an agreement with four local banks to receive VND6.86 trillion (US$298.7 million) to develop the long-delayed build-operate-transfer (BOT) expressway project, the Government news website reports.

BOT Trung Luong-My Thuan JSC has recently signed a credit agreement with Vietnam Bank for Industry and Trade (VietinBank), Bank for Investment and Development of Vietnam (BIDV), Vietnam Prosperity Commercial Bank (VPBank) and Vietnam Bank for Agriculture and Rural Development (Agribank) in Hanoi City.

Under the agreement, Vietinbank will provide a loan package of VND3.3 trillion, BIDV and VPBank VND1.28 trillion each, and Agribank VND1 trillion.

The loans are to be used to carry out the first phrase of the big-ticket project, which is of national importance. The project is included in a master plan for developing Vietnam’s expressway system until 2020, with a vision afterwards and a detailed plan for the Eastern North-South Expressway.

Duong Quang Chau, chairman of BOT Trung Luong-My Thuan JSC, said at the signing ceremony that the expressway project requires more than VND9.6 trillion (US$421.3 million), with the owner’s equity accounting for 30% of the total, equal to VND2.8 trillion.

“The project has already had more than VND1.7 trillion disbursed from the investor’s capital, including over VND1.3 trillion for site clearance and roughly VND460 billion for construction, consultancy and other costs,” Chau said.

The company plans to start work on three out of 21 construction packages later this month so that the expressway will be opened to traffic by late 2020, according to its general director, Phan Anh Dung.

Minister of Transport Nguyen Van The said the Trung Luong-My Thuan Expressway is part of the HCMC-Can Tho Expressway. Local residents, especially those from HCMC and the Mekong Delta, hold high expectations for the project.

The said the Government has issued various policies to ensure the early execution of the project. However, despite having broken ground for the project many times in the past five years, the execution process has moved slowly.

In a bid to soon complete work on the Trung Luong-My Thuan Expressway, the transport ministry has suggested the Government and the National Assembly give the green light to develop a bridge called My Thuan 2, facilitate work on the My Thuan-Can Tho Expressway project, and complete an expressway section between Can Tho and HCMC.

The minister added the National Assembly has approved VND5.5 trillion to build the bridge. He also pledged to create favorable conditions for BOT Trung Luong-My Thuan JSC to execute the project and remove remaining obstacles in a timely manner so that the project is completed on schedule and guarantees high quality construction.

The four-lane expressway will be some 51 kilometers long, with 4.5 kilometers of access roads, through five outlying districts of the Mekong Delta province of Tien Giang. It will start at the intersection of Than Cuu Nghia T-Junction and HCMC-Trung Luong Expressway, and end at the intersection with National Highway 30.

Work on the Trung Luong-My Thuan-Can Tho Expressway is scheduled for completion by late 2020. The expressway is expected to shorten travel times between HCMC and Mekong Delta provinces, bolster the socio-economic growth of Vietnam’s southwest region, and reduce traffic congestion on National Highway 1.