VIDIFI proposes delaying toll increase on Hà Nội-Hải Phòng expressway

Việt Nam Infrastructure Development and Finance Investment Joint Stock Company (VIDIFI) has submitted to the Ministry of Transport a proposal to delay increasing toll on the Hà Nội-Hải Phòng Expressway.

At present, toll is charged at VNĐ2,000 (9 US cents) per kilometre for each vehicle. As scheduled, the fee will be four per cent higher than the current toll from April 2017.

However, the company proposed to halt the increase to support businesses providing transport service following Government decision No 35/NĐ-CP issued in May 2016, the company said.

The 105km expressway, running through the four cities and provinces of Hà Nội, Hưng Yên, Hải Dương and Hải Phòng, began charging toll from vehicle drivers in December 2015.

The expressway, designed with six lanes, allowing vehicles to travel at 60-120km per hour, is believed to be the most modern expressway in the country. 

World Bank CEO Kristalina Georgieva to visit Vietnam

The World Bank’s Chief Executive Officer Kristalina Georgieva will be on an official visit to Vietnam on March 22 - 24.

While in Vietnam, Ms. Georgieva is expected to meet with State President Tran Dai Quang, Prime Minister Nguyen Xuan Phuc, and other high-ranking officials of Vietnam to discuss and confirm the World Bank Group’s future support to Vietnam.

She will also meet with development partners and other stakeholders and visit some World Bank-financed projects—that facilitate climate change adaptation and mitigation, urban resilience, and flood management.

New visa rules spark Chinese tourism boom in Vietnam

Chinese visitors are flocking to Vietnam in record numbers, buoyed by relaxed visa requirements, report officials from the Quang Ninh Province Department of Tourism.

Nearly five thousand Chinese visitors are flooding across the border daily with some holidays seeing up to 10 thousand queuing at border gates. The one in Mong Cai, they said, is experiencing long delays in processing times as a result.

Vietnam welcomed almost 1.8 million Chinese visitors in 2015, said the Department, with record levels of spending having been recorded. The new visa-free policies are further boosting arrivals.

Meanwhile, Ha Long Bay officials have reported the number of international tourist arrivals, mainly from China, is touching levels that are more than 150% that of last year’s first quarter figures.

VIB wins two international awards for MyVIB app     

Vietnam International Bank has won “Best e-bank 2016” and “Best retail mobile banking experience 2016” for its MyVIB mobile banking app.

VIB is the first local bank to be awarded by The Asset, a reputed firm specialising in research and media in Asia, with these prestigious awards. The awards are assessed transparently according to a strict process and awarded only to banks and relevant institutions with outstanding achievement and contributions in the finance and banking industry during the year.

The awards are recognition of VIB’s efforts and achievement in developing MyVIB and enabling it to meet international standards.

With MyVIB mobile banking app, customers can bank online by opening accounts, transferring funds, paying bills and making deposits, as well as managing credit cards and monitoring and repaying loans anytime, anywhere. The friendly, easy to use interface and high security of MyVIB will bring about wonderful experiences to customers in personal finance management, the bank said.

In recent years, VIB has won several prestigious awards of the banking industry from both local and international institutions. “Bank of the year” was awarded to VIB for two consecutive years - 2015 and 2016, and “Viet Nam’s Outstanding Innovative Banking Product/Service Award in 2015” was awarded by IDG for MyVIB.

“The new awards help to affirm that VIB is continuing to develop towards realising its vision to be the most innovative and customer-centric bank of Viet Nam,” the bank said in its statement. 

Central bank establishes committee to boost fintech     

The governor of the State Bank of Viet Nam has set up a steering committee to boost financial technology, or fintech, in the country.

As per decision 328/QĐ-NHNN, the committee will be in charge of developing programmes and plans and consulting with the governor to create a favourable ecosystem, including the legal framework, for fintech businesses to develop in Viet Nam.

The 10-member committee will have deputy governor Nguyen Kim Anh as its director.

This is among the government’s first efforts to boost fintech in the country, which has a population of 90 million, mostly millennials, who can exploit the huge potential of an internet economy.

Currently, there are just 30 fintech companies in the country, and a majority of fintech start-ups operate in the e-payment domain, such as 1Pay, 123Pay, VinaPay, One Pay and MoMo. The e-commerce sector in Viet Nam and Southeast Asia is expected to see a huge boom in the near future.

Services offered by fintech companies are becoming more diverse, going beyond e-payments into fund-raising, remittances, e-lending and data management. 

Mobile World trialing lottery ticket sales

Mr. Nguyen Duc Tai, Chairman of the Mobile World Joint Stock Company (HSX stock code MWG) has revealed more information about the company’s plans to sell Vietlott lottery tickets.

In association with the Vietnam Lottery Company (Vietlott), MWG will trial the sales at two or three stores in the beginning.

MWG’s CEO Tran Kinh Doanh confirmed with VET that the company is now testing sales in Ho Chi Minh City. “After the trial, we will make a decision but we have not decided anything just yet,” he said. “When sales become more formal, we will have more detailed information.”

Other representatives from MWG previously told local media that selling Vietlott tickets was simply a tool to attract more customers. “It’s the same as convenience stores accepting payments of electricity bills,” one said.

MWG has set a revenue target of VND63.28 trillion ($2.78 billion) for this year and net profit of VND2.2 trillion ($96.53 million). To reach the goals it will emphasize the importance of innovation in its development.

If it wants to increase sales, analysts have said, it will have to diversify its offerings beyond just technology. It may not be able to sustain its new store openings and at some point the market will become saturated.

Tonkin Coffee considering stake sale

Quite popular at one time in the past, food and beverage chain Tonkin Coffee, which was founded in Hanoi in 1997, has announced it is seeking partners in a 90 per cent stake sale because of changes in the company’s business strategy, according to owner Ms. Nguyen Quynh Nga.

The coffee chain was previously reported by local media as about to be acquired by Founder Team, a newly-established venture building team in Vietnam, which was to enter into an agreement to acquire a 90 per cent interest for more than $1 million.

“We are still considering partners,” Ms. Nga confirmed with VET. “Founder Team is merely one of a number of partners hoping to take over and franchise our brand, and the price of $1 million is not the final figure.”

“Tonkin Coffee is a long-standing coffee chain that we took great pains to build, so we will thoroughly consider and choose a partner with suitable capability together with the financial capacity to develop and expand the chain’s scale,” she added.

Tonkin Coffee was launched in 1997 as a family-owned business. It had been a popular hangout for local residents before it began shutting down several outlets in 2012. Local media reported that the collapse was because the company found itself in an expansion trap, where it could not facilitate its growth.

Others believe that one of the brand’s biggest mistakes was the decision to sell breakfast and fast food. It therefore had to employ more staff and buy more ingredients, while its administration struggled to cope and cash flow was poor.

Founder Team has said it would revive the brand, combining Tonkin’s founder’s expertise in operating coffee shops with its own retail experience to keep the business sustainable. Tonkin Coffee would be expanded through the franchising model around the country.

According to a report by market researcher Euromonitor, the number of coffee shops in Vietnam is growing at about 7 per cent each year. It is estimated there were more than 26,000 around the country in 2015, of which only 2 per cent (about 500) are part of chains. Chains are forecast to grow strongly over the next few years, however, compared to growth in independent coffee shops or franchises.

According to a survey conducted by the UK market researcher Mintel on the coffee market in Vietnam and other Asian countries, Vietnam leads the way in terms of authentic coffee, typically ground or full-grain coffee.

In terms of average annual per capita coffee consumption, Vietnam ranked fourth out of the five leading Asian countries, with 1.15 kg. The leader was Japan, with 2.9 kg, followed by South Korea with 2.42 kg.

Real estate receives 10% of FDI

Vietnam received over $66 billion in foreign direct investment (FDI) in the 2014-2016 period, with an average of 10 per cent going to the real estate sector, according to The Great Wall of Money report from Cushman & Wakefield.

FDI volumes have been increasing by $2 billion each year on average and 2016 finished with $26 billion. An average of 10 per cent finds its way into real estate investments annually, the report noted.

Mr. Ben Gray, Director of Capital Markets at Cushman & Wakefield Vietnam, said that the greater the pressure for managers to secure returns, the better placed the market is when compared to Asia-Pacific competition.

“Core & Core plus strategies include an element of ‘build to core’, which is a viable, rebranded way for managers to deliver returns while taking on additional risk not traditionally associated with vanilla investments,” he said.

Vietnam’s Core & Core plus assets are producing unleveraged returns that can match and exceed managers’ expectations, without the addition of development or financing risk. There are few markets where a Singaporean real estate investment trust company (REIT) could acquire a core mixed use asset worth approximately $480 billion, as happened in Vietnam last year.

Yields such as the above reinforce the message that long-term growth is projected and tangible. Vietnam has an uncongested development pipeline and more frequently from an investor’s perspectives has limited country and economic risk when compared to the regional competition.

2017 and into 2018 will continue to prove strong years for the sale and purchase of investment-grade assets.

Corporate ratings for 2017 announced by Vietnam Report showed that average revenue and after-tax profit for real estate investors in 2015 were VND649.5 trillion ($28.5 billion) and VND76.4 trillion ($3.36 billion), respectively, much higher than the averages for construction material companies and construction and real estate consultants and brokers.

Safeguard duty on imported monosodium glutamate to reduce

Safeguard duty on monosodium glutamate imported into Việt Nam will be lowered from March 25, 2017 according to a decision issued recently by the Ministry of Industry and Trade (MoIT).

Safeguard duty of VNĐ4,390,000 per tonne will expire on March 24. The new duty, set at VNĐ3,951,899 per tonne, will be imposed from March 25, 2017 until March 24, 2018, the ministry’s Decision 920/QD-BCT, dated March 10, states.

Monosodium glutamate imported into Việt Nam has been subject to safeguard duty since March 25, 2016, and this imposition will last for four years. Safeguard duty rate will be gradually cut and slashed to zero đồng per tonne from March 25, 2020. 

Nearly $25 million in preferential loans for SMEs in 2017

Vietnam Small and Medium Enterprise (SME) Development Fund has announced four preferential loan programs for SMEs in 2017 with the total funds of VND560 billion (US$24.58 million).

According to the Ministry of Planning and Investment’s fund, VND100 billion of the total amount will be for creative renovations with the maximum loan for each firm of VND10 billion. VND180 billion will be for agriculture, forestry and aquaculture with the maximum loan of VND20 billion.

SMEs from processing and manufacturing can get as much as VND25 billion out of the total amount of VND180 billion for this field.  Those from water supply, waste management and treatment can borrow up to VND25 billion out of the total of VND100 billion.

Retailer Nguyen Kim opens two new stores

Giant electronics and household products retailer Nguyen Kim last week opened two new stores in Dong Nai province’s Bien Hoa city and Binh Duong province’s Thuan An town, taking its total number of outlets around the country to 40.

Like its other stores, the new stores have an area of 1,500-2,000sq.m and a modern design, with a focus on offering customers the chance to see the products before making a buying decision.

They stock products in six key categories - electronics, refrigeration, home appliances, computing, entertainment, and telecommunications – and from famous international brands such as Sony, Samsung, Toshiba, LG, Panasonic and Electrolux.

To mark their opening, Nguyen Kim has launched a promotion for electronics, refrigerators, home appliances and digital products until March 23.

Four corporations under Ministry of Construction to be equitised in 2017

Four major corporations under the Ministry of Construction, will be equitised in 2017 under Deputy Prime Minister Vuong Dinh Hue’s instruction on restructuring State-owned enterprises and enterprises with State capital.

The four are the Song Da Corporation, the Housing and Urban Development Corporation, the Vietnam Urban and Industrial Park Investment & Development Corporation, and the Vietnam Cement Industry Corporation.

The Deputy PM also ordered the divestment of State capital and transfer of State capital ownership right to the State Capital Investment Corporation (SCIC) at 12 equitised corporations and the four corporations that are carrying out equitisation. 

The move should be carried out in adherence to regulations in Decision No 58/2016/QD-TTg of the Prime Minister, with the target firms to be classified into three groups.  

Group 1 comprises LICOGI Corporation in which the State-owned 40.71 percent stake will be maintained and the control of the State stake in the corporation will be transferred to the SCIC in the first quarter of 2017.

Group 2 comprises 10 corporations including the Vietnam Urban and Industrial Park Investment & Development Corporation. The State capital in those 10 will be reduced to zero percent by the end of 2018.

Group 3 comprises five corporations and companies including Song Da Corporation, Vietnam Cement Industry Corporation and the Housing and Urban Development Corporation. The State-owned capital in those firms will be reduced to 51 percent by the end of 2019 and a roadmap will be developed to transfer the State capital representative right at each corporation to the SCIC. 

The Deputy PM requested the MoC to ensure the State and labourers’ interests during the equitisation and rearrangement process according to law.

He also assigned the MoC to strengthen management and supervision of State capital divestment at affiliates of corporations to prevent loss of State capital.

Australia to run food promotion program nationwide

Australia is hosting the second annual Taste of Australia in Hanoi, HCMC, Danang and Nha Trang throughout April to promote its food, beverages, film, fashion and design.

Vietnamese-Australian celebrity chef Luke Nguyen will be Taste of Australia Ambassador. The program will consist of key activities, including Australian Wine Industry Training and Public Wine Show on March 31 and April 1 at the Park Hyatt Saigon (HCMC) and on March 3 at the JW Marriott Hanoi; NOSH Supperclub Dinner on April 1 at Grain Cooking Studio in HCMC; Taste of Australia Gala in Hanoi on March 11 and in HCMC on March 13; and Australian Film Screening on March 22; a cooking contest for Vietnamese culinary students using Australian ingredients in Hanoi, HCMC, Danang, and Nha Trang on April 18 and finals in Danang on April 20.

Restaurants and hotels in Hanoi, HCMC, Danang, and Nha Trang are also joining Taste of Australia as partners, offering special Aussie menus and events. Training workshops for culinary and fashion and design students will also take place in universities and institutions in Hanoi and HCMC as part of the program.

For further information, access http://tasteofaustralia.com.vn/.

VFA’s monopolistic power kills rice export competition

The Vietnam Food Association’s (VFA) monopolistic power in rice export activity has effectively compromised competition among exporters, according to a report by the Central Institute for Economic Research (CIEM).

Dr. Dang Quang Vinh, lead author of the report, said at a seminar held in Hanoi last Saturday by CIEM that Decree 109/2010/ND-CP on rice export operations had created a restricted playing field with rice exporters facing so many barriers to market entry.

To get a certificate for rice export, enterprises are required by the decree to have at least one warehouse with a minimum capacity of 5,000 tons, a 10 tons per hour milling facility, and have exported rice for 12 consecutive months.

VFA effectively monopolizes rice export activity in the country, leading to unhealthy competition between rice exporters. After signing export contracts, exporters must register with VFA within three working days.

Worse still, Vinh noted, Document 1101/TTg-KTTH signed in July 2013 by then-Deputy Prime Minister Hoang Trung Hai tasks the Ministry of Industry and Trade with approving the planning of rice exporters.

The conditions for approval of the planning include limiting the number of rice exporters at 150 nationwide and revoking rice export certificates from enterprises failing to ship abroad 10,000 tons a year for two consecutive years.

The planning must prioritize enterprises having material farming zones, and cooperating with or buying rice from rice farmers but restricts rice trading houses from participating in export activity as much as possible. In the long run, key rice exporting firms will be required to develop their own material zones, and cooperating with or placing orders directly with rice farmers, according to the document.

At the seminar, CIEM President Nguyen Dinh Cung threw his weight behind an order on Decree 109 revisions which the Prime Minister gave during a conference on solutions to sustainable development of the rice sector in An Giang Province. “His order must be strictly obeyed.”

The decree must be amended in a way that complex rules on rice export must go and the planning of rice exporters must be eradicated, PM Nguyen Xuan Phuc said, and the VFA must be deprived of the powers which it should not have been given, such as those concerning the setting of the floor rice price and the allocation of rice export quotas, to allow market forces to decide.

Economist Pham Chi Lan said at the seminar that the rice trade policy was seen as the worst such policy. “VFA is an example of group interest,” she stressed.

In the report, CIEM proposes removing the centralization of contract negotiations and treating VFA as a normal industry association rather than a powerful state agency. VFA should be equally represented by all stakeholders in the rice value chain, especially rice producers, said CIEM.

The Ministry of Industry and Trade has abandoned the planning of rice exporters but Decree 109 still abounds with tough conditions.

In 2010, before Decree 109 came out, more than 200 enterprises were active in rice export, said CIEM. However, the figure has now fallen to 145.

Binh Thuan exports 163 tonnes of dragon fruit to UAE

The Binh Thuan Province Alliance of Dragon Fruit Production, Processing and Export Cooperatives has exported a consignment of more than 163 tonnes of dragon fruit to the UAE.

Vo Nhu Trieu, CEO of the alliance, said on March 19 the fruit had been grown to Vietnamese Good Agricultural Practice (VietGAP) standards.

They were sold at 25,000 VND (1.1 USD) per kilogramme.

The alliance seeks to expand dragon fruit exports to the UAE, a promising market, by improving quality, Trieu said.

Binh Thuan’s dragon fruit is exported to 20 countries and territories, including exacting markets like the US and Europe.

The south-central province, the country’s largest dragon fruit producer, has around 26,500ha under the fruit, which yield 500,000 tonnes a year.

Around 10,000ha are farmed to VietGAP standards.-

Hai Phong, Vietnam Airlines ink tourism promotion deal

The People’s Committee of Hai Phong city signed a deal with the national flag carrier Vietnam Airlines on March 20 to introduce the people and land of the northern port city abroad.

Under the agreement, Vietnam Airlines will support the city in implementing its foreign affairs and tourism promotion plans this year. Hai Phong will join Vietnam Airlines in the carrier’s promotional booths at international tourism fairs in the Republic of Korea, France and the United Kingdom. 

The airline will invite tour operators from Europe and Northeast Asian countries to visit and learn about Hai Phong and its tourism potential and promote the city’s image in all its marketing channels.

On the other hand, Hai Phong will help the airline to develop its business in the city and promote services to local residents.

Last month, Vietnam Airlines also concluded an agreement with the People’s Committee of Hanoi to help the city promote its tourism.

Stocks up on high Q1 hopes

Shares rose on the two local exchanges on March 20, driven by high investor confidence on expectations of positive earnings reports from listed companies.

The benchmark VN Index on the HCM Stock Exchange rose 0.6 percent to close at 715.07 points, ending positive compared to the decline of 0.6 percent on March 17.

More than 175.28 million shares were traded on the southern bourse, worth 4.02 trillion VND (179.95 million USD).

The VN Index performed well on Monday after it was put under pressure from exchange-traded funds (ETFs) increasing their trading activities in their first-quarter portfolio reviews, BIDV Securities Corp (BSC) said in a note.

“Investor confidence has improved,” BSC said, adding that positive investor sentiment helped lift the stock market in spite of long-term negative effects from the Fed’s rate hike last week and the decline of Faros Construction Corp’s share price.

BSC also said in its latest weekly report that investors would turn their attention to stocks with good business prospects and positive information.

Finance-banking stocks were the ones that received high interest from investors as they were expected to release positive earnings reports for the first-quarter performances.

Eight of the nine listed banks advanced yesterday with Asia Commercial Bank (ACB), Eximbank (EIB), MBBank (MBB), Sacombank (STB) and Vietcombank (VCB) among the biggest gainers.

The insurance sector was driven up by Bao Viet Holdings (BVH), while brokerage firms that saw share prices increase were HCM City Securities Corp (HCM), MB Securities Corp (MBS), Sai Gon Securities Inc (SSI) and VNDirect Securities Corp (VND).

Other blue chips also supported the positive direction of the stock market, including Vietjet Aviation JSC (VJC), southern brewer Sabeco (SAB), consumer goods producer Masan Group (MSN) and steel makers Haa Phat Group (HPG) and Hoa Sen Group (HSG).

On the opposite side, dairy producer Vinamilk (VNM), Faros Construction Corp (ROS) and property developer Vingroup (VIC) declined and prevented the southern market from rising higher.

“The VN Index may continue to move in the range of 710 and 720 points as there is not much positive market news that could lift the index further,” BSC said.

Investors must keep a close watch on the movement of some large-cap stocks such as ROS as that stock has fallen for three consecutive days and its negative trend would have negative impact on the stock market, BSC added.

On the Hanoi Stock Exchange, the HNX Index added 0.7 percent to end at 89.03 points. The northern market index has rallied a total 2.3 percent in the last five sessions.

More than 50.6 million shares were exchanged in the northern market, worth 656.8 billion VND.

Reference exchange rate stays stable

The daily reference exchange rate was set at 22,254 VND per USD on March 21, unchanged from the previous day.

 With the current /-3 percent trading band, the ceiling rate applied to commercial banks is 22,913 VND and the floor rate 21,586 VND per USD. 

The listed rates at commercial banks saw slight fluctuations during the opening hour. 

At Vietcombank, both the buying and selling rates went up 5 VND to 22,750 VND (buying) and 22,820 VND (selling) per USD. 

BIDV raised both its rates by 10 VND from March 20, listing the buying rate at 22,750 VND and the selling rate at 22,820 VND.        

The rates listed by Vietinbank also rose by 5 VND to 22,755 VND (buying) and 22,825 VND (selling) per USD.

 Hau Giang seeks investment in hi-tech agriculture

Authorities of the Mekong Delta province of Hau Giang on March 20 received a delegation from the Tata International Vietnam Company Limited, to discuss agricultural investment in the province.

Jitendra Manghnani, Country Manager of the company in Vietnam, Cambodia and Laos said that Vietnam is among five countries with enormous potential in agriculture. He also expressed his hope to invest in Hau Giang province, especially in agricultural mechanisation.

The company is planning to provide free training courses for local farmers and collaborate with cooperatives to introduce technological solutions in agriculture, he added.

At the working session, Truong Canh Tuyen, Vice Chairman of the provincial People’s Committee, said that despite infrastructure difficulties, Hau Giang province boasts many advantages to attract investment such as abundant workforce.

The Government has allowed the province to zone off about 5,200ha of land for hi-tech agriculture. Hau Giang will have favourable conditions to implement the large-scale field model as it has more than 170 agricultural cooperatives.

The province is calling for investment in hi-tech agriculture, he said, adding that it is ready to cooperate with Tata International Vietnam in this field.

According to the provincial Department of Agriculture and Rural Development, Hau Giang boasts over 130,000ha of rice and fruit cultivation land and is seeking investment in processing agricultural products.

More than 1,000 businesses join Saigon Tex 2017

The Vietnam Saigon Fabric & Garment Accessories Expo (Saigon Tex 2017) will open at Saigon Exhibition and Convention Centre on April 5. It is sponsored by the Ministry of Industry and Trade and VINATEX.

The event is expected to attract more than 1,065 businesses from Vietnam and 24 countries including China, India, Hong Kong, Indonesia, Malaysia, Singapore, Thailand, Japan, the Republic of Korea (ROK), Thailand, Pakistan, Canada, Belgium, France, Germany, Italy, the Netherlands, the UK and the US.

On display will be latest garment, textile and dyeing machines and equipment, and equipment for business management and development.

Saigon Tex 2017 will create conditions for Vietnamese garment companies to access advanced machines, equipment and technology to improve their quality of products.

The domestic garment and textile industry has constantly developed in recent year. In order to get US$28-30 billion from exports, the industry needs to import nearly US$10.5 billion of materials for production, mainly from China, Taiwan and the ROK.

Truong Van Cam, vice secretary general of Vietnam Textile and Apparel Association (Vitas), said the domestic businesses have invested more in modern technologies and equipment to raise productivity and reduce labour forces.

Let’s get to work Building a food secure future

The ASEAN+6 conference “Let’s get to work. Building a food secure future” will be held in Hanoi on March 22 and 23, 2017, hosted by the Ministry of Agriculture and Rural Development of Vietnam, together with the Ministry of Economic Affairs of the Netherlands.

Aiming to bring together a broad range of high-level delegates from governments, international organisations, NGOs, knowledge institutes, and the private sector, the conference will focus on concrete contributions to the implementation of several Sustainable Development Goals.

The ASEAN+6 is one of the regions which are most vulnerable to climate change. This is an alarming reality since the economy activities in the region largely depend on agriculture, and climate change has already made its impacts on the level and quality of agricultural production and food systems.

In addition, for a fast growing region, factors like population growth, urbanisation, and rising incomes are resulting in increase in demand for high-quality nutritious food and putting pressure on already scarce natural resources.  

Vietnam is taking the initiative to organise “Let’s get to work. Building a food secure future” conference based on a national sense of urgency to come up with solutions for climate change and growing demand for high-quality food.

The conference is an invitation to share, discuss and demonstrate ideas for converting challenges into opportunities, and global objectives into clear and concerted regional actions. 

Therefore, a regional action plan for the implementation of Sustainable Development Goals is expected to be made and agreed upon by the end of the conference.

Keppel Land increases stake in Saigon Centre

one of the leading Singaporean real estate developers, through its subsidiary, Krystal Investments Pte Ltd., has acquired an additional 16 per cent stake in Saigon Centre from its Vietnamese partner at VND845 billion ($21.6 million).

Keppel Land said on March 20 that it had acquired the stake in a group of Keppel Land WATCO I to V, the joint venture (JV) entities set up to develop Saigon Centre in Ho Chi Minh City, from partner Southern Waterborne Transport Corporation.

Following the acquisition, Keppel Land has increased its aggregate interest in the JV companies set up to develop Saigon Centre phases one and two (Keppel Land WATCO I, II and III) from approximately 45.3 to 53.5%, and its aggregate interest in the JV companies set up to develop subsequent phases of Saigon Centre (Keppel Land WATCO IV and V) from 68 to 76.2 per cent.

According to Ang Wee Gee, CEO of Keppel Land, the company is committed to growing its commercial portfolio in key Asian cities.

“Vietnam, one of our key growth markets, continues to attract foreign direct investment, which will drive positive demand in the property market from homes to offices and mixed-use developments. Our increased stake in Saigon Centre reflects Keppel Land’s confidence and long-term commitment to contribute to sustainable urbanisation in Vietnam with our quality portfolio of properties,” Gee said.

To be developed in several phases, Saigon Centre is located on a two-hectare prime site in the heart of the central business district in District 1. It is also within walking distance from two planned underground subway stations located at Ben Thanh Market and the Opera House.

The Saigon Centre retail mall, part of phase two, was opened on August 1, 2016, with Takashimaya department store as its anchor tenant. The retail mall has received close to six million visitors since its opening.

Phase two of Saigon Centre, designed by the internationally renowned New York-based architecture firm NBBJ, will comprise 55,000 sm of prime retail space, 44,000 sm of premium grade A office space as well as 195 luxury serviced apartments when fully completed at the end of 2017.

Phase one of Saigon Centre, which was completed in 1996, comprises a 25-storey office tower which at the moment is all leased to the diplomatic corps, multinational companies, as well as banking and financial institutions.  Tenants include DBS Bank, AIG, Reuters and Mitsubishi Corporation.  

The above mentioned transaction is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corporation Limited for the current financial year, Keppel Land said.

In Vietnam, Keppel Land is one of the largest and pioneer foreign real estate investors with a diverse portfolio of properties in Hanoi, Ho Chi Minh City, Dong Nai and Vung Tau including Grade A offices, residential properties, integrated townships and award-winning serviced apartments.

With 19 licensed projects across Vietnam and a pipeline of more than 25,000 homes, Keppel Land is establishing itself as the choice developer, distinguished by quality and innovative lifestyle concepts.

Bosch Rexroth showcases cutting-edge technology at ProPak Vietnam 2017

Bosch Rexroth, the drive and control division of Bosch Vietnam, is showcasing its latest technology and solution at ProPak Vietnam 2017.

The tradeshow takes place at Saigon Exhibition and Convention Centre (SECC) on Nguyen Van Linh street, District 7, Ho Chi Minh City, from March 21- 23, 2017.

At ProPak Vietnam 2017, Bosch Rexroth will display its complete range of products and solutions for packaging and processing, including the EasyHandling – the linear module system, cabinet-free automation technology and VarioFlow plus – the modular plastic chain conveyor.

Additionally, open core engineering – which combines the previously separate PLC and IT worlds into one comprehensive solution portfolio – will be presented at this tradeshow. 

With the open core interface, Bosch Rexroth is providing a software interface that is unique: it permits enhanced access to the control core, offers numerous programming languages and allows the integration of smart devices into automation systems. 

ProPak Vietnam is the premier sourcing and networking tradeshow for food and beverage, and pharmaceutical processing and packaging technology in Vietnam.

Viet Nam trade promotion needs improvement: official     

Trade promotion has become more and more important because it impacts enterprises’ product consumption so trade promotion should be improved, an official said.

“Trade promotion should be done with long-term vision and focus to target customers,” Bui Huy Son, head of the Ministry of Industry and Trade’s Trade Promotion Department was quoted as saying in the Sai Gon Giai Phong (Liberated Sai Gon) newspaper.

“The department will support any locality which can deliver their trade promotion programme for the next three to five years,” he added.

Son suggested localities should focus into their key products, such as the Mekong Delta with processed food and agricultural products; or furniture, footwear, garments and textiles in the southeastern region.

“We are building one website to link all trade promotion and market information sources for the whole country and we hope to provide more useful information for localities and enterprises,” he said.

In 2016, there were 600 trade promotion programmes organized in southern provinces, including 22 foreign trade and exhibition programmes with turnover of VND300 billion (US$13.33 million), accounting for around 60 per cent of the national turnover.

“However, trade promotion hasn’t got any innovation. The number of programmes has increased but support for enterprises after promotion is low,” said Bui Thi Thanh An, head of the Trade Promotion Department’s Office in HCM City.

“Localities have paid more attention to trade promotion with more money spent for activities but it’s not enough for large, high-quality programmes,” she added.

She revealed that most of provincial enterprises have small and medium sizes and they have limitations in finances, management, market knowledge and trade promotion participation.

“Poor-management in trade promotion hasn’t created good image for Vietnamese products when they are sold abroad. Some low quality products also appeared in Vietnamese trade promotion programmes,” she said.

“Market information for enterprises is not updated and information demand and supply for trade promotion haven’t met with each other,” Nguyen Khanh Tung, director of Can Tho Trade, Investment Promotion and Exhibition Centre, said.

Current information given by provincial trade promotion centres is inefficient but information that enterprises receive is limited.

“Small expenditure on market research and the limited capacity of provincial trade promotion centres are reasons for the problem,” Tung added.

No professional analysis nor links with trade partners were some of the reasons that local enterprises could not work with provincial trade promotion centres.

To improve the situation, trade promotion centres should carefully study markets.

“Trade promotion centres should contact and introduce several potential local partners for enterprises to contact in advance,” Nguyen Cong Toai, director of Can Tho’s Industry and Trade Department, said. 

$7 million earmarked for fisheries     

Around VND164.8 billion (US$7.16 million) will be earmarked for technology transfer in the fisheries sector during the 2017-20 period to help in its restructuring.

Of this, VND81.3 billion will come from the State budget while the remaining will come from other sources, under a scheme recently approved by the Ministry of Agriculture and Rural Development (MARD).

The scheme aims to promote the transfer of technology and its application in aquaculture, fishing and fish preservation on vessels in order to improve the output and quality of seafood.

Specifically, it will bring together resources from individuals and organisations to develop a science-technology market that will facilitate the transfer of scientific and technological advances. At least 12 technological advances will be applied across the fisheries sector to raise fishing efficiency by 25 per cent and to reduce post-harvest loss by 20 per cent; as well as improve output and the quality of farmed tra fish, shrimp in brackish water, mollusc, tilapia and lobster.

Around 40 demonstration models of various applications will be set up at cooperatives, while 1,500 individuals and organisations will receive technical training so that they can adopt the technology.

Regions have been asked to draw up their own technology transfer and application plans.

Resources will be mobilised through scientific research programmes and schemes on fisheries encouragement and new rural development under the MARD. The ministry will sign contracts with research establishments on developing desired technological products, review effective production models and rearrange production in the fisheries sector. 

OCB and Bac A Bank set up remittance companies     

The State Bank of Viet Nam has approved plans by two additional commercial banks, OCB and Bac A Bank, to set up subsidiaries specialising in providing overseas remittance (kieu hoi) services.

After establishing the subsidiaries, Bac A Bank (the North Asia Commercial Joint-Stock Bank) and OCB (the Orient Commercial Bank) will ask the central bank to approve the receipt and payment of foreign currency services.

When Vietnamese residents are sent remittances from abroad, they can choose either to receive it through banks or from overseas remittance (kieu hoi) companies owned by the banks. Le Minh Tam, CEO of Sacombank Overseas Remittance Service Company, told Thoi bao Kinh doanh (Business Times) that at Sacombank, 60 percent of overseas remittances go through the bank, and the remaining through its overseas remittance company.

According to experts, using remittance service companies rather than banks has several advantages, including streamlined policies and regulations encouraging Viet kieu (overseas Vietnamese) to invest in their homeland. The companies also provide simplified remittance transfer service licences issued by the State Bank of Viet Nam.

Customers using remittance services also benefit as they are not subject to income tax on foreign currency transferred from abroad, there is no limit on the amount of money they can transfer, and they can deliver or receive money in the original currency. 

In addition, many remittance companies provide a wide network and modern technologies, together with attractive promotional programmes.

Other banks, including VietinBank, BIDV, Agribank, ACB, Sacombank and Dong A Bank have also been running their kiều hối companies for years.

Of them, Dong A Bank and Sacombank are considered to have pioneered the overseas remittance company model. Both banks had overseas remittance divisions in the 2000s and then decided to set up subsidiaries to facilitate their operation.

In 2016, the remittance company of Dong A Bank earned a revenue of US$1.43 billion, up 5 per cent against 2015. Its pre-tax profit increased 17.8 per cent year-on-year, reaching VND15.2 billion ($670,000). Meanwhile, the remittance company under Sacombank recorded revenues of about $1.5 billion.

Work starts on complex in Kien Giang     

The construction of a VND300 billion (US$13.19 million) entertainment complex in Rach Gia City in Mekong Delta’s Kien Giang Province started on Saturday.

The 40,000-square metre park is part of the Phu Cuong Kien Giang Ocean Urban Complex, one of the largest projects in Mekong Delta, which includes a hospital, a shopping centre, an international school, and a sport-entertainment complex.

The project is expected to help make tourism a leading revenue-generating sector for the province by 2020.

Huynh Ha Phuong, director general of Phu Cuong Kien Giang Investment Joint Stock Company, said the entertainment complex has 12 sections: a 2,500 square metre water park, a sun wheel, a marina, a golf course, a 6000sq.m sea-view square, two tennis courts, two swimming pools, two indoor badminton courts, a gym, a game area and a helicopter pad.

The high-end complex, located on the 30-hectare manmade Phu Gia island, is scheduled to open to the public three years after start of construction.

The VND2.2 trillion artificial island is being planned as a modern and stunning piece of architecture. It took the company one year to level 90 per cent of the ground and build the embankment. As a sea-encroaching urban area, it will have upmarket sea-view villas, five-star hotels, seaside resorts and a yacht port.

Around 30.4 per cent of the 30 hectares will be used to build houses, 14.47 per cent of the land will be allocated for trade and services, 29.95 per cent will be a green zone and the rest of the land will be used for transport. 

SonKim Land wins IAIR Awards     

Property developer SonKim Land Corporation has won the IAIR Award in the “Company of the Year for Leadership Property & Real Estate Vietnam” category at the seventh IAIR Summit and Awards held in Hong Kong.

The organizers said SonKim Land had the highest score in this category as a leading real estate developer of luxury projects, including residential, hospitality, retail, and office buildings, and for using the most modern design methodologies to create integrated and economically and environmentally self-sustaining master developments.

The company is developing a project called Serenity Sky Villas in HCM City’s District 3.

It is also well-known for a premium residential project called Gateway Thao Dien and a luxury apartment project called The Nassim, a joint venture project with HongKong Land, a reputed global developer.

Recently the company announced it had successfully raised funds overseas.

Through the Lemon Grass Master Fund, Japanese investors are set to invest US$100 million into the company.

The IAIR Awards are one of the world's leading prize for excellence inthe global economy, innovation and sustainability.

For this year’s awards, the organisers did an online survey of its 150,000 readers. VNS

Representatiave of SonKim Land receives the award. 

Bank stocks drive markets up     

Driven by bank stocks, shares on the two local exchanges rose slightly on Tuesday morning.

The benchmark VN Index on the HCM Stock Exchange ended almost flat at 715.37 points. The southern market index gained 0.6 per cent on Monday.

The HNX Index on the Hà Nội Stock Exchange added 0.5 per cent to end at 89.46 points. The northern market index had increased by total 2.3 per cent in the previous five sessions.

More than 153.7 million shares were traded on the two local bourses, worth VND2.79 trillion (US$123.9 million).

Bank stocks continued to perform well on Tuesday morning on high expectations of positive first-quarter earnings reports to be released.

Seven of the nine listed banks advanced. Vietcombank (VCB) rose 0.4 per cent while others such as Asia Commercial Bank (ACB) and Eximbank (EIB) increased by 2.1 per cent and 3.5 per cent, respectively.

The stock market was also supported by other large-cap companies, including property firm FLC Group (FLC), Faros Construction Corp (ROS), dairy producer Vinamilk (VNM) and consumer goods producer Masan Group (MSN).

VNM and ROS edged up 0.6 per cent each, and MSN and FLC jumped 3.7 per cent and 4 per cent, respectively.

On the opposite side, southern brewer Sabeco (SAB), property developer Vingroup (VIC) and PetroVietnam Gas Corp (GAS) were weighing down the market. 

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR