Mercedes-Benz Viet Nam recalls 3,624 vehicles over faulty fuse

     

Mercedes-Benz Viet Nam is recalling 3,624 vehicles that are at risk of catching fire due to a potentially faulty fuse.

According to the German car maker, the list of recalled vehicles includes C200, C250, C300, E200, GLC 250 4MATIC and GLC 300 4MATIC models, manufactured between September 2015 and February 2017.

The models will be checked and installed with an additional fuse in the electrical line to the starter at an estimated time of 30 minutes per car.

The recall campaign is scheduled to begin on May 14, 2018, and end on September 9, 2020.

Mercedes-Benz Viet Nam is also recalling another 384 vehicles (models E200, E250 and E300) manufactured from August 2016 to April 2017 to replace the seat belts on the left and right backseats. The duration of checking and repairing is estimated at one-and-a-half hours per vehicle.

This recall campaign started on April 16, 2018, and will run till December 31, 2022. 

Top 500 firms with best growth and prosperity announced

This is the eighth consecutive year that a list of the top 500 best growth (FAST500) firms in Vietnam has been released, with Masan Resource Corporation and Khang Dien House Trading and Investment JSC high on the list.

The Vietnam Report Joint Stock Company (Vietnam Report), in coordination with VietNamnet Bridge, held a ceremony in Hanoi on April 18 to announce the FAST500 list in 2018 and the BP500 – the top 500 most prosperous firms.

The list of firms was drawn-up based on independent research and assessment outcomes conducted by Vietnam Report.

According to the FAST500 2018, Masan Resource Corporation, Khang Dien House Trading and Investment JSC, FIT Group, Transport and Industry Development Investment JSC and Vietjet Aviation JSC secured the top positions on the list.

Meanwhile, Asia Foods Corporation, Quang Trung Industry JSC, Vinafeed Group, ADC Company, and Co May Lai Vung Company topped the list of the most prosperous firms - BP500.

Companies honoured at the event have shown stable and effective business outcomes and high growth potential, while also showing innovation in business and a responsibility to society, contributing to the development of the country.

At the event, Vietnam Report also announced a list of the 10 best firms in the areas of real estate - construction - and construction materials in 2018, with Vingroup, Khang Dien and Nova among the best firms.

Nokia 7 plus and New Nokia 6 now available

HMD Global, the home of Nokia phones and tablets in Vietnam, officially launched two new products in the Android smartphone portfolio - the New Nokia 6 and Nokia 7 plus.

The two provide a high-quality software experience designed by Google. Users’ phones will always be up-to-date with the latest AI enhancements and the highest level of security. This is the third launch of Nokia products by HMD Global in Vietnam.

“As we broaden our product portfolio, we keep our vision: providing great Nokia phones that meet the expectations of fans,” said Mr. James Rutherfoord, Vice President of Asia Pacific at HMD Global. “It is a moment of excitement and looking forward we will continue to grow successfully by expanding our product portfolio and bringing to consumers the Nokia phones they love and trust.”

“A smartphone is a friend,” said Mr. Kyler Tan, CEO of HMD Global Vietnam. “Through these new devices, users will find our innovative approach to engineering and heritage in the field of imaging and pioneering in collaboration with ZEISS. Users will also recognize the best we have for them from the material to the particular finish in the product portfolio, bringing the durability and reliability expected from a Nokia phone. We believe the addition to this range of phones will enable consumers around the world to truly find their own Nokia phone.”

On the same day, the Mobile World Investment JSC (MWG) announced a strategic partnership agreement with HMD Global, Google, Qualcomm, and Home Credit to bring the New Nokia 6 and Nokia 7 plus to Vietnamese consumers. The two products will be available in the 1,800 MWG stores nationwide with attractive incentives available only in-store.

“We found our inspiration and mission to work with Nokia and its partners,” Mr. Nguyen Duc Tai, Chairman of the Board of Directors of MWG, said at the announcement. “For every Vietnamese, Nokia is a familiar name and recalls beautiful memories. As a retailer, we will strive to make our products more accessible to consumers and provide the best customer care.”

With the original Android operating system, Nokia smartphones do not change unnecessary interfaces or have hidden running programs that can cause battery drain or slow down the device, which allows users to experience and enjoy the phone for longer. Each new phone has a number of pre-installed apps that limit storage capacity and always receive the latest enhancements to give users a superior experience every day.

The new smartphones run on Android Oreo (Go edition), which was designed with faster performance, better security, more storage, and greater data management in mind. “At Google, we are thrilled to deepen our partnership with HMD across this important initiative that brings a reliable and consistent experience on Android to Vietnam, across a spectrum of price points,” said Mr. Dan Seet, Head of Android Partner Programs, APAC, at Google.

The New Nokia 6 retails for VND5.99 million ($265) and the Nokia 7 plus VND8.99 million ($395).

DKT introduces multi-channel shopping platform

DKT Technology JSC on April 17 launched a multi-channel online shopping platform called Sapo X targeting 2.5 million stores and enterprises nationwide, said Tran Trong Tuyen, CEO of DKT Technology.

Tuyen attributed the opening of the platform to fast change in the retail sector.

Specifically, in addition to using equipment like smartphones and laptops to buy products, customers can shop via Facebook and Zalo and participate in e-commerce transactions. Therefore, sellers need to be present on as many channels as possible to access consumers and enhance sales.

Sapo X, which is based on an open platform in Vietnam, helps store owners facilitate governance and omnichannel sales.

Tuyen also mentioned Sapo X as a key platform capable of receiving and processing goods orders on different sale channels, enabling stores to reduce staff.

Sapo X can meet sales demand ranging from ten to 10,000 orders daily, saving 30% of shipping charges and 70% of system-setting costs.

Tuyen also suggested that the new platform helps traders save on much time operating, managing customers and orders, and controlling inventories due to risks from multi-channel sales.

Connecting markets for watermelon consumption

A meeting “Connecting markets for consuming watermelon and key farm produce in Quang Ngai” took place on April 17 in the central province of Quang Ngai with the participation of more than 50 Chinese traders as key importers of the product.

The event, jointly organized by the Ministry of Industry and Trade and Quang Ngai government, also gathered representatives of provinces such as Quang Nam, Quang Ngai, Phu Yen, Binh Dinh, and Lao Cai, the news website chinhphu.vn reported.

During the meeting, the participants discussed the pros and cons of watermelon production and consumption, as well as other farm produce.

Tran Duy Dong, head of the domestic market agency under the ministry, said watermelon cultivation and consumption in Quang Ngai is facing difficulties due to small and scattered production scale.

When foreign traders purchased a huge volume of watermelon, supply for the local market normally runs short, and then local farmers would quickly expand cultivation, which consequently leads to a glut on the local market. Such oversupply pushes prices down.

At the meeting on April 17, provincial departments and Chinese parties signed a collaborative agreement on consumption of watermelon and other farm produce.

Since the beginning of this month, China has requested the verification of the origin of Vietnamese fruits and vegetables, and therefore, the ministry has asked traders and cooperatives to adhere to the requirements of the importing country in producing safe farm produce.

Can Tho city woos Japanese investors

The Mekong Delta city of Can Tho is seeking Japanese investments in nine projects, focusing on high-tech agriculture and industry, centralized IT, logistics and construction, said Chairman of the municipal People’s Committee Vo Thanh Thong. 

At a working session with a delegation of the Japanese Embassy in Vietnam and Japanese partners on April 19, the official said the nine are among 46 projects with total investment capital of about 100 trillion VND (4.4 billion USD) calling for investors, to be announced at an investment promotion conference in Can Tho city slated for August 2018.  

The city is also looking for partners and donors for pre-feasibility study on a cable car project linking Can Tho International Airport with Cai Rang district, and an urban waterway project along Hau River, which runs from An Giang province to Hau Giang province through Can Tho city, he added. 

The Chairman took the occasion to ask the Japanese Consul General, Embassy and partners to join hands with the city to organise celebrations of the 45th anniversary of the Vietnam-Japan diplomatic ties, and the fourth Japanese culture and trade day in the city in the coming time. 

The municipal leader suggested establishing a research centre or office on Japan at the Can Tho University, which, he said, will work as a channel to provide Japanese partners with information on Mekong Delta localities, especially Can Tho, while supporting human resources development for investment projects. 

He also sought Japan’s official development assistance (ODA) for the construction of the 300-bed Can Tho Cardiovascular Hospital, which will need investment capital of some 1.5 trillion VND (66 million USD).

Present at the working session, former State President Truong Tan Sang said the Vietnamese Government aims to turn Can Tho into a centre of the Mekong Delta, thus spurring the regional growth. Therefore, Vietnam hopes Japan can help the city build a master plan for the development of not only the city but also the Mekong Delta as a whole.

He also appealed to the Japanese side to help the city with social sectors like hospitals, schools and scientific-technological facilities in order to ease the burden for Ho Chi Minh City. 

Japanese Ambassador to Vietnam Umeda Kunio said many Japanese firms had expressed willingness to engage in comprehensive cooperation with Mekong Delta localities during the April 18 conference in Can Tho that aimed to connect Japanese businesses and the 12 provinces and Can Tho city in the Delta. 

He asked Can Tho to provide official information about the upcoming investment promotion conference for the Japanese side. 

The ambassador hailed the Can Tho Chairman’s proposal on a Japan research centre, adding that Japan is willing to cooperate with Can Tho in this issue. 

He noted that Japan and the Can Tho University have partnered in agriculture, and Japan wants to increase Japanese language teaching and cultural exchange at the university. 

Regarding the Can Tho Cardiovascular Hospital, the ambassador said the Japan International Cooperation Agency will be assigned to work on this matter.

Over 200 firms participate in HVACR VN 2018

Over 200 domestic and foreign enterprises are taking part in the HVACR Việt Nam 2018, held in Hà Nội from April 18 to 20. 

More than 200 domestic and foreign enterprises are taking part in the International Exhibition on Heating, Ventilation, Air-Conditioning, Air Filtration and Purification and Refrigeration Systems (HVACR Việt Nam 2018).

The exhibition, which kicked off on April 18, is being held in Hà Nội for the first time.

The event has been organised in HCM City 11 times. The last edition was held in March 2017 and hosted more than 550 participating companies and brands and attracted 7,906 visitors.

Jack Wei, general manager of Informa Global Exhibitions (Asia), one of the organisers of the exhibition, said among the participants this year are many famous international brands from China, India, Italy, South Korea, the United States, Malaysia, Singapore, Thailand and Turkey.

At the event, they are introducing their latest equipment and technology, which will provide customers access to the convenience, safety and energy efficiency of the newest and best products in the market, Wei said.

“We strive to inject fresh and exciting elements to each edition of HVACR Việt Nam so that both our exhibitors and visitors walk away empowered with new ideas, contacts and resources,” he added.

The annual global event is considered the ideal platform for international manufacturers and suppliers to launch new products, reach out to buyers, appoint agents and distributors, promote brand awareness and establish business networks in Việt Nam’s booming economy.

Throughout the three-day exhibition, a series of complimentary HVACR and Green Building seminars and technical talks will be held, hosted by HVACR Việt Nam organisers and its partners, namely the Việt Nam Green Building Council and Việt Nam Energy Efficiency Network.

Park Byung-Hun, secretary general of the Korea Building Energy Management System Association that has set up a pavilion at this year’s exhibition, said: “Our association was established to contribute to the development of high efficiency and green buildings through the development of ‘building energy management technology’, which integrates construction technology, ICT (information and communications technology) and energy management technology, as well as systematic management of building energy facilities.”

“HVACR Việt Nam 2018 is especially important to us, given the rising global attention on energy efficiency and the emphasis of this year’s exhibition on showcasing the related technologies,” he said.

International beauty industry exhibition opens in HCM City

Visitors at the 2018 Cosmobeaute Vietnam that opened in HCM City on April 19. 

The Vietnam International Exhibition on Aesthetic, Beauty, Cosmetic, Hair, Nail and Spa, or Cosmobeauté Vietnam, opened in HCM City on Thursday with more than 200 exhibitors taking part.

According to the organisers, 75 per cent of the exhibitors are from countries and territories such as Germany, Hong Kong, Italy, China, Japan, South Korea, Malaysia, Singapore, Spain, Taiwan, Thailand, and the US.

The expo would enable the local beauty industry to source premium brands and enhance and extend its business opportunities, CP Saw, founder of Cosmobeauté, said.

The exhibitors include manufacturers, exporters, distributors, agents, and suppliers of perfumery, cosmetic and personal hygiene products, natural health products, health foods and beverages, dietary supplements, professional care products, equipment and solutions for beauty salons, salon furnishing, spa and wellness facilities, packaging and processing equipment, private labels, and raw materials.

There will be beauty workshops, seminars, live demonstrations, beauty shows and others with industry experts sharing know-how and experience and updating visitors on beauty trends.

Organised by ECMI ITE Asia and the Minh Vi Exhibition and Advertisement Services Co at the Saigon Exhibition and Convention Centre in District 7, the expo which will go on until April 21 is expected to attract 13,500 visitors.

Mining Viet Nam 2018 opens     

Mining Viet Nam 2018, an international mining and minerals recovery exhibition opened its doors on Wednesday at the International Centre for Exhibition in Ha Noi.

The three-day expo attracted 137 enterprises from 18 countries and territories, including the UK, Czech Republic, Germany, Singapore, China and Australia. They are showcasing equipment, machinery and technologies used for mining in the 4,000 square metre site.

Director of the Vinacomin Institute of Science and Technology Tran Tu Ba said that Vinacomin was willing to work with partners to bring technological advances used in mining to Viet Nam.

Despite the global mining industry facing a recent slowdown, Mining Viet Nam 2018 continues to attract the participation of many domestic and international exhibitors.

"This shows the optimism of the mining industry in Viet Nam, thanks to policies encouraging mineral exports and an increase in local demand,” said BT Tee, general director of UBM VES Company, the exhibition’s organiser said.

During the event, three seminars will gather speakers to discuss breakthroughs and sustainability in mining, as well as advances in mining and underground works, and the use of modern technology in mining and management. They will also talk about the restoration of mineral resources, and environmental protection.

Asia Miner, a well known Australian magazine specialising in mining and the exploitation of mineral resources, will continue its partnership with Viet Nam in the Regional Technical Conference Viet Nam 2018, with speakers from major foreign firms taking part.

Participants will also discuss measures to improve mining output and safety standards in the field. The biennial event took place for the first time in 2012 and is considered one of the most trustworthy exhibitions in the mining industry in Viet Nam as well as in the wider Asia-Pacific region. It has become a bridge connecting domestic and foreign firms and diversifying advanced technologies and equipment.

This year’s event is expected to draw more than 4,500 visitors.

RoK investors hoped to be strategic partners in VN’s SOE equitisation

As investors from the Republic of Korea (RoK) have financial strength, management experience and high technology, Vietnam wants them to actively take part in and become strategic partners in the equitisation and divestment of State capital from State-owned enterprises (SOEs).

Finance Minister Dinh Tien Dung made the remark in an interview given to Vietnam News Agency on the sidelines of an investment promotion conference in the RoK on April 18.

He said the Vietnamese Government recognises the role of foreign investors, including those from the RoK. 

The RoK investors’ participation in the equitisation and divestment will help improve the quality of economic restructuring in Vietnam. It is expected to promote the effectiveness of the governance and use of capital at SOEs in the country, he added.

The minister said the fields that Vietnam wants to attract RoK investment in should be the ones both sides are strong at and can contribute to the two economies’ prosperity like heavy industry, oil refining and petrochemistry, high technology, electronic and consumer product manufacturing, and infrastructure and real estate development.

Vietnam highly values RoK investors’ advantages in capital, technology and governance. It hopes that aside from direct investment, they will also step up indirect investment so as to materialise the statement of the two countries’ leaders during a visit to Vietnam by RoK President Moon Jae-in last March.

The RoK is currently the biggest investor in Vietnam with 59 billion USD of direct investment and over 3 billion USD of indirect investment. Samsung projects in Thai Nguyen province, Bac Ninh province and Ho Chi Minh City, Kaengnam and Lotte buildings, and the Starlake residential area in Hanoi are considered examples of successful investment cooperation between the two countries.

Meeting looks to increase Japanese presence in Mekong Delta

A conference took place in Can Tho city on April 18 to connect Japanese partners with the Mekong Delta, where the presence of foreign businesses, including Japanese ones, is still modest compared to other regions of Vietnam.

The event was among an array of activities marking 45 years of the two countries’ diplomatic ties.

In the opening remarks, former President Truong Tan Sang said the conference aimed to promote investment cooperation between the Mekong Delta localities and Japanese partners. It was a new stride in Vietnam-Japan relations since the signing of a joint statement on the establishment of an extensive strategic partnership for peace and prosperity in Asia in 2014.

Deputy Foreign Minister Bui Thanh Son said after years of making development efforts, the Mekong Delta, comprising 12 provinces and Can Tho city, has become a dynamic region full of development potential. The Vietnamese Government pins high hopes on this region, which is also attracting interest of many domestic and foreign investors.

However, he said, the presence of foreign businesses, especially Japanese ones, in the Mekong Delta remains modest compared to other regions. Notably, most of Japanese investors have just concentrated their investment on Can Tho city.

Meanwhile, unpredictable climate change in this region also poses risks to local economic and food security and social stability, he noted.

He expressed his hope that through this conference, Japanese investors would understand more about the Mekong Delta in general and Can Tho city in particular so as to have long-term business orientations here. He also expected that they would stand side by side with the Vietnamese Government in preventing and addressing negative climate change impacts, helping to turn the Mekong Delta into a strong economic hub of the country.

Introducing his city’s advantages, Chairman of the Can Tho People’s Committee Vo Thanh Thong emphasised that Can Tho boasts a favourable river port system linking with many regional localities, along with an international airport. It also has the most developed trade centres, education and healthcare services in the region. Those are the conditions helping the city attracting the most investment in the region over the past years.

For his part, Japanese Ambassador to Vietnam Umeda Kunio said he will actively support the Mekong Delta in attracting Japanese investment. He will help them organise events to connect with Japanese businesses in line with the capacity and demand of each locality.

The conference discussed cooperation in developing transport, health care, education-training and climate change adaptation infrastructure; locality-to-locality cooperation in culture, tourism and labour; and cooperation in agricultural investment.

Sidelines activities included talks between the Mekong Delta localities and the Japanese Ambassador, and visits to industrial parks, projects needing investment, and Japanese companies in Can Tho.

On this occasion, memoranda of understanding on cooperation were inked between the Foreign Ministry’s Department of Foreign Affairs of Localities and Vietnam Airlines and Jetstar, between the Bio-Technology Centre of An Giang province and Japan’s Hagihara company, between the An Giang Bio-Technology Centre and Japan’s Daimasa Engineering company, and between the Vietnam-Japan Friendship Association in Can Tho city and the Sakai-Vietnam Friendship Association.

Vietnam expands seafood exports to China

Promoting Vietnamese seafood exports to China was the main focus of a workshop held by the Vietnam Pangasius Association (VPA) and China’s Yuexi fisheries association in the Mekong Delta city of Can Tho on April 18. 

Vo Hung Dung, VPA Vice President, said Vietnam’s seafood export value to China rose from about 400 million USD in 2014 to 1.8 billion USD in 2017, helping China surpass the US to become the country’s biggest seafood importer.

However, he pointed out the possibility of ending contracts ahead of schedule, thus putting Vietnamese businesses at risk. 

Therefore, it is necessary to be cautious while stepping up exports to this market, the official stressed. 

Cen Jian, a representative of the Yuexi fisheries association, suggested Vietnamese seafood firms ship their products via official channels to avoid the risk, protecting the interests of both exporters and importers. 

Ta Minh Phu, President of the Bac Lieu Seafood Association, raised concerns regarding China’s incentives and tax policies for Vietnamese aquatic products. 

In reply, the Chinese side said Vietnamese seafood businesses enjoy a preferential import tax rate of zero percent for the whole year, which is a great advantage for Vietnam compared with the rate of 2.5 percent imposed on Malaysia and Indonesia. 

Tran Thanh Phong, Deputy Secretary General of the VPA, said his association will implement five groups of solutions to promote exports to the Chinese market. 

The association aims to successfully materialise the Vietnam-China border trade agreement, set up trade links with Guangxi, Yunnan and Guangdong, utilise incentives fro the ASEAN-China Agreement, urge China to remove technical barriers in the sector and intensify trade promotion through exhibitions and fairs. 

On this occasion, the Chinese side released information about a seafood fair in Zhanjiang city from June 18-20, 2018, which is expected to draw about 200 businesses. 

Participating Vietnamese firms will be exempt from all costs and provided with market information, they said.

Winners of Vietnam Property Awards honoured

Around 54 winners of Vietnam National Property Awards were honoured at a ceremony held by the Vietnam Real Estate Association (VNREA) in Hanoi on April 14.

The event was attended by Deputy Prime Minister Trinh Dinh Dung, alongside representatives of ministries, branches and central agencies and representatives of real estate companies. Prime Minister Nguyen Xuan Phuc and Politburo member, Secretary of the Party Central Committee (PCC) and head of the PCC's Communication and Education Commission, Vo Van Thuong, sent a bouquet of flowers to the event.

Addressing the event, on behalf of the Government and the Prime Minister, Deputy PM Trinh Dinh Dung congratulated the winners, while highly appreciating the plan to hold the Vietnam National Property Awards.

Meanwhile, he also asked the Ministry of Construction and the related ministries and branches to review and perfect the policies and legal framework on housing, land and planning, as well as tax and financial policies, real estate business activities in the direction of transparency and simplifying administrative procedures, and creating a favorable business environment for people and businesses.

The Vietnam National Property Awards aims to honour outstanding individuals, organisations and projects that have contributed to the rapid, sustainable and transparent development of the realty market amidst industrialisation, modernisation and integration, thereby encouraging domestic property firms to improve their competitiveness and trademarks to meet international practices.

Participants competed in eight categories, including prestigious real estate developer, largest urban area, best resort development, best office building for rent and shopping malls, best residential area, best green building, best real estate transaction floor and best social housing project.

Vietjet among Top 10 Vietnam Excellent Brands in 2017

Budget carrier Vietjet Air was honoured as among the top ten strong brands with prestigious development in 2017 at the Golden Dragon Awards & Vietnamese Excellent Brands Festival 2017 – 2018, organised by the Vietnam Economic Times in Hanoi on April 14.

The other top-ten businesses included Sun Group, MobiFone, Hung Loc Phat Real Estate Service JSC, TBS Group, Benthanh Group, Binh Dien Fertiliser JSC, Vissan JSC, Bach Dang Construction Corporation, and Southern Airports Services JSC.

Vietjet has been voted as one of Vietnam’s excellent brands for years due to its unceasing efforts to grow and contribute to the community’s development.

The development of the largest private airline not only helps to provide flight opportunities to millions of passengers, but also promotes Vietnamese brands to every Vietjet destination.

Vietjet is the first airline in Vietnam to operate under a new-generation aviation model, offering low costs and providing a wide range of services for customers to choose from.

Currently, Vietjet is operating 55 A320 and A321 aircrafts, carrying out more than 385 flights a day and has transported more than 55 million passengers, with 82 routes covering all destinations in Vietnam and international routes to Hong Kong (China), Singapore, the Republic of Korea, Taiwan, China, Thailand, Indonesia, Myanmar, Malaysia, and Cambodia.

Ford dealership opens in Thai Nguyen

Vietnam inaugurated an authorized dealership in the northern province of Thai Nguyen on April 11, taking to 37 the number of its dealerships in the country.

Thai Nguyen Ford covers 10,000 square meters on Cach Mang Thang Tam Street in Thai Nguyen City in the province of the same name. The showroom has a total area of 2,600 square meters and the workshop 5,000 square meters.

Thai Nguyen Ford is expected to service 100 vehicles a day.

Down in the south, Dong Nai Ford put a new facility in Binh Long Ward in Bien Hoa City into operation on April 9. The new facility costs VND135 billion.

Its workshop covering 4,500 square meters can provide maintenance service for 70-100 autos a day.

Isuzu Vietnam launches first Euro 4 standard trucks

The trucks introduced by Isuzu Vietnam on April 12 meet the Euro 4 emission standards.

The industry has gradually switched from using Euro 2 engines to Euro 4 ones which are more environmentally friendly. Isuzu’s Blue Power technology is used for all Forward and QRK trucks.

Only in Southeast Asia, the company’s new trucks are equipped with Isuzu Blue Power engines to improve performance, reduce noise and save fuel.

Euro 4 engines with compatible fuel helps reduce 97% of coal dust and 71% of NO2, and hydrocarbon emissions.

Vissan aims high for pre-tax profit

Riding on the better-than-expected performance last year, Vissan, a leader in meat processing in the country, has set a target of making VND179 billion in pre-tax profit.

The HCMC-based firm attained VND165 billion pre-tax profit last year, way above the VND156 billion target.

Nguyen Ngoc An, general director of Vissan, said at the firm’s general meeting on April 11 that Vissan would be able to make VND4.6 trillion in revenue, up 18% year-on-year, and VND179 billion in pre-tax profit, up 8% against last year.

The company will expand outlets, convenience stores and other sales channels. An said Vissan will have five more stores selling fresh products, develop mobile sale platforms, restore sales at traditional wet markets and gain a bigger market share for processed food in the countryside.

The company plans to set up a livestock farm in Binh Duong Province to boost supply.

A report released at the general meeting showed that in 2017 Vissan’s total sales revenue amounted to some VND3.9 trillion, making up just 86% of the plan. Its post-tax profit was about VND130 billion, up 143% against 2016.

The dividend was 7% in 2017, equivalent to over VND56.6 billion.

Enterprises decry high seafood origin certification fee

Local enterprises have decried the VND700,000 fee charged by fishing port operators for certifying the origin of each catch of aquatic products, demanding that the fee be slashed to VND200,000, Nguoi Lao Dong newspaper reports.

The Vietnam Association of Seafood Exporters and Producers (VASEP) has written to the Ministry of Agriculture objecting to the fee.

VASEP said the certification fee, imposed in accordance with Circular 230/2016 of the Ministry of Finance, goes against the principle that fee collection is meant to cover costs because the cost of certifying the origin is small.

Vietnam’s seafood catch is required to have the origin certified after the European Commission issued a yellow card against illegal, unreported and unregulated fishing. VASEP said the Government has sought to lower costs for enterprises, so the fee should be revised down to VND200,000 a batch only.

Besides, port operators should fully perform their mandate to issue origin certificates as required, said VASEP. In fact, several port operators have failed to carry out that mandate as they are short of personnel as well as essential equipment like scale, computer, or photocopier, which renders enterprises helpless in the process of completing legal procedures for seafood export.

A lot of Vietnam seafood shipments to the European Union have been delayed due to the lack of required documents. Consequently, many enterprises have had to compensate or have their contracts cancelled because of delays.

Banks cut deposit rates

Many banks have slashed deposit interest rates by 20-40 basis points given their ample liquidity, Tien Phong newspaper reports.

Vietnam Prosperity Commercial Bank (VPBank) has lowered rates by 20 basis points for deposits of less than six months, 30 basis points for six- and seven-month tenors, and 40 basis points for savings of between eight and 11 months. This is the third deposit rate cut of VPBank in two months.

Vietnam International Bank (VIB) also adjusted down its rates last month. The rate for savings of one to three months is now 5.1%, down 30-50 basis points against January, while six-month savings get a rate of 6-6.3% depending on the size of deposit, a decline of 20-40 basis points.

At Military Bank (MB), the rate for six-month deposits is now 5.5%, down from 5.7% in early February. Meanwhile, the rate for the 12-month term is kept unchanged at 7.2%.

The deposit rates are even lower at commercial banks with State holdings. The Vietnam Bank for Industry and Trade (VietinBank) has reduced the rate ceiling for six- to eight-month savings by 50 basis points to 4.8%. However, the rates for most long-term tenors from 12 months to less than 36 months are unchanged at 6.8-6.9%.

The Bank for Investment and Development of Vietnam (BIDV) also revised down its rates twice last month. In the first reduction, the rate for one- to two-month savings was down by 20 basis points.

In the second adjustment last month, BIDV cut the rate for deposits of 364 days and 13 months by 10 basis points. The bank’s current rates for savings of one to two months and longer than 12 months are 4.1% and 6.8-6.9% respectively.

In general, banks tend to reduce their rates for short-term deposits by 20-40 basis points. The rates are 10-30 points higher than late last year.

It is noteworthy that the difference between the rates at joint stock banks and State-owned banks is as high as 50-90 points for tenors of less than 12 months.

According to the National Financial Supervisory Commission, the loan-to-deposit ratio last month was 88.2%, up from 87.8% late last year. Liquidity in the banking system is ample as the State Bank of Vietnam has bought huge amounts of foreign currencies and the disbursement of capital raised from Government bond sales is slow.

Capital mobilized from economic organizations and individuals in the first quarter of the year rose 3% over the end of last year and was higher than the average last year (2.6%). In addition, credit growth in the first three months of 2018 was reported at 3.5% against late last year while the rate was 4.3% in the same period last year.

The interbank market also saw a plunge of 0.47-1.2 of a percentage point in deposit rates for overnight, one-week and one-month tenors to 0.83%, 0.98% and 1.73% respectively.

Three economic and industrial zones get new financial boost

The Government has set aside a near US$1 billion budget in the 2016-2020 period to develop infrastructure for economic and industrial zones, news website Lao dong reports.

Under the Prime Minister’s Decision 351/QD-TTg, infrastructure will be developed for coastal economic, border economic, industrial, high-tech and high-tech agriculture zones to facilitate investment and foster technology development and application at a total cost of almost VND21 trillion in 2016-2020.

By 2020, 200-250 kilometers of road, water drainage and wastewater treatment systems with a daily capacity of 13,000-14,000 cubic meters, technical and social infrastructure of resettlement areas covering 150-200 hectares will be built.

The PM assigned the Ministry of Planning and Investment to work with the Ministry of Finance to draw up a plan for allocating capital to the projects under the decision.

HCMC launches Innovative Startups in Tourism

Saigon Innovation Hub has announced a contest for innovative startup projects in the tourism sector with an aim to have scores of feasible projects to get financial support annually for commercialization.

According to the organizer, the contest is to be made an annual event to look for startup projects with sound solutions, feasible products and high technological contents aligned to the city’s tourism development.

The HCMC Department of Science and Technology and the Department of Tourism will jointly organize the HCMC Innovative Startups in Tourism (HIST) in 2018.

Those projects participating in the Innovative Startups in Tourism will have a chance to get funding from the city’s program for supporting startups projects called SpeedUp. Startup ideas about travel, accommodation, tourist transport, and payment for the sector among others will be given priority in the program.

The projects will be evaluated based on factors such as novelty, innovation, technology application, economic efficiency, and social impact. The organizer expects to have some 40 projects presented to judges, and then 20 projects will go to mentoring and training rounds.

Apart from awards for projects in the final round, the organizer will take the five best projects into consideration to fund up to VND2 billion from the SpeedUp program of the HCMC Department of Science and Technology. The final round will take place in October 2018 on the occasion of the HCMC Innovative Startups in Tourism Week.

Customs officers implicated in fuel smuggling case in Binh Thuan

Smuggling activities of Duong Dong Hoa Phu Co. in the south-central province of Binh Thuan were helped by officers at the provincial customs department, according to a local newspaper.

A Tuoi Tre Online report said the Supreme People’s Procuracy has finished an indictment alleging that 12 were involved in the fuel smuggling case in Binh Thuan.

The volume of smuggled fuels amounted to hundreds of thousands of tons and was worth over VND2 trillion. The case has been transferred to the People’s Court of Binh Thuan Province for trial.

Dinh Huu Thuy, who was in charge of inspecting import shipments of Duong Dong Hoa Phu Co., has been charged with taking bribes and Le Van Vinh, Thuy’s colleague, with abusing position and power while on duty, said the report.

Thuy admitted receiving VND12 million from Nguyen Tuan Anh, an employee of Duong Dong Hoa Phu Co., in each import shipment inspection. Thuy kept VND3 million for himself, handed over VND3 million to Vinh and the remainder to a team at the department.

Thuy took almost VND150 million in total from Anh, according to the report. 

Investigators at the Ministry of Public Security found that Vo Van Toan, director of the customs department, Ta Hung Dung, deputy director of the department, and Luu Trong Vu, head of the team that got money from Thuy, failed to supervise and monitor their staff’s work.

An interdisciplinary team headed by the investigative force of the Ministry of Public Security inspected BTS Christina tanker, owned by BTS Tankers in Singapore, on January 29, 2016 and found A92 gasoline was being pumped from the ship to the storage tank of Duong Dong Hoa Phu Co. in Tuy Phong District.

Inspection results showed the company formally declared import of over 1,800 tons of gasoline. But at the time of inspection, BTS Christina was found to be carrying 9,300 tons and more than 3,200 tons had already been pumped from the vessel. The inspection team concluded that Duong Dong Hoa Phu Co. had smuggled over 7,200 tons of A92 petrol, worth VND155 billion.

Between October 2015 and January 18, 2016, Duong Dong Hoa Phu Co. was found to smuggle in some 100,000 tons of fuel worth over VND2 trillion. Of these, the company sold more than 120 million liters of fuel, generating revenue of over VND1.3 trillion.

Nguyen Duc Manh, chairman and general director of the company, was identified as the one who signed fuel import documents.

Philippine national Romels Pagente Aleria, captain of BTS Christina, has also been prosecuted for allegedly illegally transporting goods across borders, said the news report.

The report quoted the indictment as saying that Romels Pagente Aleria transported more than 7,200 tons of A92 petrol worth nearly VND155 billion, which was different from what was declared in import documents.

Vietnam’s sticky rice price takes sudden nosedive

The sticky rice price in Long An Province has suddenly dropped to VND9,600 per kilo from VND11,000 around 10 days ago due to a sharp fall in Chinese purchases, delivering a blow to traders and exporters, news website Vietnamplus reports.

Dang Van Thanh, CEO of Viet Thanh Limited Co., said 80-90% of sticky rice output has been exported to China via border trade. But in the last two weeks, all orders by Chinese importers have been suspended, resulting in a commercial sticky rice price slump, Thanh added.

Traders had earlier placed deposits of VND4-5 million per hectare of sticky rice to guarantee purchase of the imminent crop from farmers at VND6,100 per kilo, and are now facing huge losses as the market price tumbled to only VND5,300 per kilo when harvest comes.

In recent years, the demand for sticky rice has been running high, propping up prices and leading farmers in Long An Province and elsewhere in the Mekong Delta to expand cultivation of this commodity.

According to statistics of Long An’s Department of Agriculture and Rural Development, in the winter-spring crop, there was 85,000 hectares of sticky rice with average output of eight tons per hectare.

Chinese importers suddenly stopped buying it, hitting Vietnamese exporters and traders hard, while farmers saw their harvested crop piling up.

If traders choose to buy all output as agreed, they would lose VND800 per kilo. If they choose to abandon their deposits of VND4-5 million per hectare, their losses would average out at VND500 million to VND1 billion given the large area under contract.

Nguyen Ngoc Long, owner of Ngoc Long enterprise, said given the volatile sticky rice price, Vietnamese exporters have suspended buying sticky rice from traders and farmers while waiting for the price to rebound.

Long proposed the Government and relevant agencies to lend a helping hand in finding new markets.

RON 95 petrol still has no base price

The Ministry of Industry and Trade has yet to announce the base price of RON 95 gasoline as stipulated in Government Decree 83 on transparency of fuel pricing and as required by Deputy Prime Minister Vuong Dinh Hue.

In the latest adjustment of fuel prices late last week, the ministry mentioned the instruction by Deputy PM Hue on announcement of the RON 95 base price in line with the law and market rules.

Fuel experts earlier proposed the ministry make known the base prices of all fuels after RON 92 gasoline was banned from the market early this year.

However, the ministry just put the average price of RON 95 petrol on global markets in the first quarter of the year at nearly US$80 per barrel, up US$3.76 or 4.94% year-on-year. The ministry also encouraged fuel traders to raise the selling price of RON 95 by a maximum of VND526 per liter from the current price.

Vietnam National Petroleum Group (Petrolimex), the country’s biggest fuel trader, then increased the RON 95 price by VND520 per liter last Saturday.

The ministry can use global prices, taxes and fees as a basis to calculate the base price of RON 95.

Nguyen Tien Thoa, chairman of the Vietnam Valuation Association, said the ministry’s protracted delay to publicize the RON 95 base price runs counter to the Government’s directive and affects the interests of local consumers.

Why the ministry has persistently refrained from making known the RON 95 base price remains a mystery.

Bao Viet Holdings' 2017 net profit up 37%

Bao Viet Holdings recorded consolidated net profit of VND32.7 trillion ($1.5 billion) in 2017, representing 113.4 per cent of its annual plan and up 37.6 per cent, according to its latest financial report. It yet again holds the leading position in Vietnam’s insurance market.

Total assets as at December 31, 2017 were VND91.4 trillion ($4 billion), up 25.2 per cent, while owners’ equity was VND14.4 trillion ($631.7 million), up 5.7 per cent against the end of 2016. After-tax profit on charter capital stood at 15.1 per cent.

Its stock (BVH) was one of the most stable in the VN30-Index. In the opening months of this year it increased sharply, closing at VND107,000 ($4.70) on April 9, for capitalization of over $3 billion. With stable business results, large capitalization, and high trading volumes, BVH has become a popular destination for cash flows from long-term investors and international investment funds.

Life insurance grew strongly, with total revenue at more than VND22 trillion ($1 billion). This was the second consecutive year Bao Viet Life has led the market, holding the Number 1 position in terms of market share of new revenue and total revenue. Bao Viet Life was also named Best Life Insurance Company in Vietnam by the prestigious World Finance magazine.

The non-life insurance sector surpassed its revenue target, reaching nearly VND10 trillion ($438,730). Some businesses grew handsomely and contributed significantly to new insurance revenue, such as motor vehicle insurance (up 29.8 per cent), voluntary health insurance, and fire insurance and special risk insurance (up 24.6 per cent).

The securities sector saw remarkable success in brokerage revenue. The Baoviet Securities Company (BVSC)’s brokerage market share was approximately 5 per cent, up nearly 40 per cent compared to 2016 and putting it in the Top 5 companies with the largest market share on the Ho Chi Minh Stock Exchange (HSX) for two consecutive quarters.

Lufthansa Technik AG looking for opportunities in aircraft maintenance

Numerous German firms have visited and expressed their desire to co-operate and invest in transport infrastructure in Vietnam. In particular, Germany’s Lufthansa Technik AG proposed to invest 

German Deputy Ambassador to Vietnam Wolfgang Manig shared at a meeting with Deputy Minister of Transport Le Dinh Tho recently that so many German firms want to invest in the Vietnamese transport sector, such as in seaports, railway modernisation, automobile, and mechanics.

In addition to transport in the aviation sector, aviation mechanics is also a potential area. Thereby, Lufthansa Technik AG and Vietnam Airlines Engineering Company (VAECO) are discussing co-operation opportunities in aircraft maintenance and they need the approval of the Ministry of Transport (MoT) for this plan.

The representative of Lufthansa Technik AG said that they plan to develop an internal maintenance facility for narrow-body aircrafts then evolve it into a maintenance and overhaul facility not only for Vietnamese but also regional customers.

Lufthansa Technik AG (Lufthansa Engineering) is one of the world’s leading providers of aircraft maintenance, repair, and overhaul (MRO) services for civil aircrafts as well as its engines and components. It is a subsidiary of Lufthansa Group.

Tho confirmed the two-digit average growth (around 15 per cent in the last ten years) of Vietnam’s civil aviation. This sector holds great potential and MoT is working to approve and create favourable conditions for VAECO and Lufthansa Technik to seek co-operation opportunities.

Earlier, a delegation of foreign enterprises (including Greenland Holding Group, Vision Transportation Group, and VIPD Group) has come to look for co-operation opportunities in Vietnam’s transport infrastructure. The leader of MoT shared information of key transport projects.

According to the plan for the road sector, 2,000 kilometres of the North-South Expressway will be put into use by 2020. 654km of this is developed under the public-private partnership (PPP) format.

Vietnam is also formulating plans for the North-South high-speed railway to submit to the National Assembly in 2019. The Hanoi-Vinh and Saigon-Nha Trang sections will be developed first.

Several international airport projects such as Noi Bai, Tan Son Nhat, Long Thanh, Danang, Can Tho, and Cam Ranh are being developed, while the expansion project of Tan Son Nhat International Airport has just been approved.

Vietnam will build a new 20-hectare terminal with the capacity of 20 million passengers at the southern end of the airport, next to the existing terminals. It is estimated to cost a total of VND18 trillion ($0.8 billion).

The area at the northern end of the airport would be used to build supporting structures, such as more cargo terminals and plane maintenance, logistics, and food processing facilities. These are good chances for foreign investors to co-operate and invest in this sector.

Long Thanh International Airport has officially selected the lotus design. This airport will cover 5,000ha with an investment of $16.03 billion to raise the capacity to 100 million passengers and 5 million tonnes of cargo annually.

Garment sector needs manpower development strategies: workshop

To develop and enter global supply chains, the textile-garment industry needs to have strategies for developing high-quality human resources right from now, insiders said at a recent workshop in Ho Chi Minh City.

Pham Xuan Hong, Chairman of the HCM City Association of Garment, Textile, Embroidery and Knitting (AGTEK), said at the event on April 14 that textile-garment is not only a spearhead export industry of Vietnam but also one of the sectors generating the biggest numbers of jobs, about 2.5 million.

However, most of employees in the sector are manual workers in charge of simple steps while the steps requiring technical skills like dyeing or designing are facing a shortage of skilled workers.

Hong said the shortage of high-quality manpower is also one of the reasons why local production of apparel materials remains undeveloped and Vietnam has to depend on imported materials. Meanwhile, the steps generating high added value like designing products and building brands are still limited.

Although Vietnam is one of the five biggest apparel exporters in the world, global consumers haven’t known any Vietnamese fashion brands, he said.

Dr Pham Xuan Thu from the HCM City College of Foreign Economic Relations said only about 30 percent of over 6,000 textile-garment businesses in Vietnam operate in textiles, including weaving, dyeing, printing and finishing fabric. Most the remaining firms make products ordered by foreign fashion brands. Only few of them are able to create their own products, from manufacturing fabric, designing to making apparel.

Many companies still have to hire foreign experts and technicians at high costs to be responsible for dyeing, completing fabric and designing products, thus augmenting production costs and reducing their products’ competitiveness compared to foreign rivals, he added.

Amidst growing integration and competition, to retain development and engage in global textile-garment value chains, the country needs to invest in training and improving manpower quality in an appropriate manner, participants in the workshop said.

Dr Thu said the textile-garment sector has expanded to a certain size and now it’s time for it to make changes in quality, which means switching to the stage creating more added value.

To do that, the sector has to restructure both production and manpower, he noted, adding that only when labour quality increases can businesses make use of material sources well, raise labour productivity and improve management capacity to boost their competitiveness.

He suggested them invest more in manpower training, recruit and give intensive training to committed employees, and offer appropriate salary and bonus to encourage workers to make self-improvement.

Another problem facing textile-garment companies is that their employees tend to switch to other firms to look for better opportunities after getting training and experience. Therefore, to keep employees, aside from appropriate salary, businesses should also create conditions for workers to show their capacity, create a friendly work environment and pay attention to workers’ spiritual needs, Thu said.

At the workshop, AGTEK Chairman Hong also called for more active participation of State management agencies and training schools to boost training in the textile-garment industry.

National conference seeks ways to reduce logistics costs

Ways to reduce logistics costs and improve transport connectivity were the main topics of a national conference held in Hanoi on April 16 under the chair of Prime Minister Nguyen Xuan Phuc.

A World Bank report showed that the expenses for logistics services accounted for 20.9 percent of Vietnam’s gross domestic product (GDP), of which transportation costs amount to 59 percent.

According to the Ministry of Transport, the shipping costs of a 40 feet container from Hanoi to Ho Chi Minh City (excluding loading and unloading costs) is estimated at 40 million VND (1,762 USD), 9.7 times higher than that of sea routes and 2.5 times higher than that of railways.

The high costs of road transportation is due to unhealthy competition as transactions are conducted mainly through intermediaries and transport businesses have failed to optimise their operations, Deputy Minister of Transport Nguyen Van Cong explained, adding that the costs of oil and petrol make up around 30-35 percent while the toll fees account for about 10-15 percent.

Meanwhile, the transportation via railways, inland waterways and sea routes has yet been upgraded with long transport time and expensive loading and unloading services, he said, adding that the connectivity between transport businesses is limited and the information sbout the market demand is insufficient.

To reduce logistics costs, the Ministry of Transport said it is necessary to invest in building a national expressway network to ensure effective connectivity to industrial parks, key economic centres, border gates, seaports, railway stations, and inland water ports.

The railway sector needs to build goods transportation stations and upgrade loading and unloading facilities and warehouses to provide common services for all transport enterprises.

Additionally, it is recommended to develop container transportation via inland waterways.

The transport ministry suggested forging transport connectivity between seaports, roads, railways and inland waterways.

Meanwhile, the aviation sector needs to develop freight services by establishing a cargo route network, encouraging investors to build regional cargo airports, and providing incentives for airlines to open routes to the cargo airports.