HCMC Enterprise Products Week attracts 100 firms

More than 100 enterprises from HCMC are showing their products to the public in Ben Tre Province and the Mekong Delta as a whole at the 2017 HCMC Enterprise Products Week in Ben Tre Province.

The May 11-15 event is jointly organized by the Investment and Trade Promotion Center of HCMC (ITPC) and the Department of Industry and Trade of Ben Tre Province.

ITPC director Pham Thiet Hoa said the second edition of the event is aimed at supporting HCMC firms to introduce their products to southern provinces, and creating opportunities for businesses to build links, exchange experiences, transfer technology and do the branding.

The exhibition of high-quality goods has attracted many HCMC enterprises with over 150 booths in the sectors of hi-tech agriculture, bio-industry, mechanical engineering, electronics, fashion, food and consumer goods.

Pham Thi Han, deputy director of Ben Tre’s Department of Industry and Trade, said she expected enterprises of HCMC and Ben Tre to expand markets for their products via similar trade shows that are intended to encourage consumers to buy more Vietnamese goods.

The event also includes many other activities such as a program connecting enterprises and distributors in Ben Tre, a seminar promoting trade and tourism in Ben Tre associated with the Mekong Delta, and free medical treatment for 200-300 people in Ben Tre Province’s Chau Thanh District.

HCMC, Jetstar clinch tourism promotion deal

The HCMC Department of Tourism and Jetstar Group have struck a memorandum of understanding (MOU) on cooperation to promote tourism and Australian tourist arrivals to the city.

The signing of the MOU took place last Friday after Australia-based Jetstar Airways commenced direct services from Sydney and Melbourne to HCMC to bank on Vietnam’s expanding aviation market and the growing number of Australian visitors to this ASEAN country.

Australian tourism grew 21% last year, with Australians spending about a third more on their visits than other international travelers to Vietnam, Dean Salter, CEO of Jetstar Airways, said in a statement.

He added an Australian tourist spends an average of US$1,677 per trip in Vietnam through expenditures on hotels, food and other purchases, higher than the average spending of US$1,114 made by other international travelers in Vietnam.

Vietnam, one of the fastest growing holiday destinations in Southeast Asia, was the largest country in the region without a low-cost direct link to Australia before Jetstar Airways launched direct services to HCMC last week, he noted.

Salter said the introduction of low fares between Australia and Vietnam, and Jetstar’s commitment to promoting Vietnam as a top tourist destination would make it possible for Vietnam to achieve its tourism targets.

Tourism is targeted to become a new economic spearhead of Vietnam by 2020 with its total revenue forecast to rise to US$35 billion, double the figure in 2016. The sector looks to serve 17-20 million international visitors and 82 million domestic tourists that year.

Vietnam attracted more than 10 million foreign travelers last year, up a staggering 26% year-on-year. The first four months of this year saw international arrivals surging 30.3% to 4.28 million with Australian visitors totaling 130,330 in January-April, up 5.7% from the year-earlier period.

Australia has been an important source market for Vietnam’s tourism sector, according to Jetstar.

With the MOU in place, Jetstar will promote Vietnam tourism to customers around Australia.

Jetstar Group has been well represented in the Vietnamese market through Jetstar Pacific, regional carrier Jetstar Asia and now Jetstar Airways.

 “There is enormous potential for Vietnam to become one of the most popular destinations for Australian travelers thanks to its wonderful year-round climate and great beaches, food and culture,” Salter said.

Jetstar Group has five Jetstar-branded airlines, namely Australian-based Jetstar Airways, Singapore-based Jetstar Asia, Jetstar Pacific in Vietnam, Jetstar Japan and Jetstar New Zealand. The pan-Asian airline group operates both long-haul and short-haul flights with 127 aircraft.

No-bid contracts banned for North-South Expressway project

Open and transparent tenders must be invited to choose investors for the North-South Expressway project in line with the Government Office’s Notice 217 on a conclusion of Deputy Prime Minister Truong Hoa Binh on the big-ticket project.

The North-South Expressway is a project of national importance, so it must go before the Politburo and the National Assembly (NA) after it is thoroughly screened by the Government.

The Government has asked the Ministry of Transport to finalize a report on the project’s total investment cost and schedule.

In regard to site clearance, the Government has decided to clear a total length of 684 kilometers, instead of the entire route, to avoid a waste of land.

Meanwhile, investment policies and mechanisms will be needed to attract investors and speed up the project. However, tendering must be made open and transparent, so awarding no-bid contracts will be prohibited.

Relevant ministries and agencies must ensure a strict supervision mechanism over the project, prevent possible losses and group interests, and avoid seeking guarantees from the National Assembly for minimum revenues, foreign exchange rates and insurance for a third party representing the Government to honor contract terms.

The Government has also agreed to add the Dau Giay-Phan Thiet section to the cross-country expressway project.

The State Bank of Vietnam has been assigned to closely monitor banks’ lending to the project and make sure investors will have sufficient reciprocal capital in accordance with Decree 15/2015/ND-CP on public-private partnership investment. This means those investors relying entirely on bank loans cannot participate in the project.

Earlier, the Government approved a plan proposed by the Ministry of Transport to use VND55 trillion from the proceeds of G-bond sales in 2016-2020 to partly fund the 1,372-kilometer North-South Expressway project worth a staggering VND314 trillion.

The funding will cover site clearance for the project while the remaining capital will come from other sources like official development assistance (ODA) loans and private sector investments.

New trade centre opens in Ha Noi     

The Artemis trade centre opened its doors on Sunday on Le Trong Tan Street in Ha Noi.

Financed by ACC Thang Long Company, the 29.700-square.metre centre boasts a supermarket, cinemas, commercial spaces and entertainment areas.

Booths at the centre will offer thousands of gifts and promotions to its customers to celebrate this occasion.

According to experts, the modern retail market in Viet Nam had much room for development, as modern shopping currently makes up 25 per cent of the country total retail sales, much lower than that of other countries in the region.

They predict that the proportion of modern retail channels, including trade centres, will rise by 45 per cent by 2020. The country will have more than 330 commerical malls, 1,200-1,300 supermarkets and thousands or even tens of thousands of convenience stores by that time. 

The rise and rise of BIM Group

Rich experiences accumulated over two decades, adhering to the philosophy of doing business with one’s heart, and strategic vision have helped the BIM Group build a prestigious name for itself.

The growth and rise of any firm goes hand in hand with unforgettable lessons and valuable experiences, which are intangible but precious assets for a company, and that’s the case for the BIM Group too. Among one of the few groups in Việt Nam with a development history of more than 20 years, the company has seen its share of ups and downs, but overall it has been the case of: “fire proves gold, adversity proves men”.

With three major pillars in its development strategy – tourism development, property investment, and agriculture and trade and services – the brand not only has a vibrant business story but also is a symbol of the effort made towards sustainable development.

Most people know the BIM Group through its real estate projects such as Halong Marina Urban Area in the northern Quảng Ninh Province, which has changed the face of Hạ Long and helped it develop into a modern city, and projects such as Fraser Suites and InterContinental Phu Quoc Long Beach Resort.

However, not everyone is aware of that the BIM Group deserves the title of the “banyan tree” in the field of agriculture and food as it is one of the largest fishery producers and exporters in the country, with a total farming area of 1,600 hectares.

Since the 2000s, the group has set up a number of fishery farming projects, such as the 251-hectare Minh Thành farm, 1,234-hectare Đồng Hoà shrimp breeding region, the Phú Quốc breed development centre, and the Tắc Cậu fishery processing plant. Its fishery products are exported to markets such as the US, EU and Japan.

The group also owns the largest salt field in Southeast Asia, whose annual capacity is 500,000 tonnes.

In 2010, the BIM Group entered the trade and services sector with luxury gym Elite Fitness, which has dozens of centres in Hà Nội, HCM City and Hạ Long. It also owns the Zpizza restaurant chain.

It is the real estate projects that affirm the BIM Group brand the most. Đoàn Quốc Huy, deputy chairman of the BIM Group, said the relentless efforts of its employees helped the group achieve higher-than-targeted business results in 2016, which is very encouraging in the context of the increasingly tough competition in the property market.

A pioneer property developer in Quảng Ninh Province, it offers luxury apartments, shophouses, and has popular resort townhouse projects such as the Green Bay Towers, Green Bay Village, Pearl Villas, Royals Lotus Villas & Resort and Litte Viet Nam.

The group has also poured around US$300 million in the popular tourist island of Phú Quốc. Its flagship project is the 155-hectare Phú Quốc Marina, which is expected to become Việt Nam’s Sentosa in the future.

With strategic vision, the group has generated special interest for its property products by partnering with the global brands such as InterContinental Hotels Group, Frasers Hospitality Pte Ltd and Ascott Limited.

The BIM Group is also spreading its wings into the international market, with its first five-star hotel in Laos, Crowne Plaza Vientiene, opening its doors in April.

In 2017, its line-up includes InterContinental Phu Quoc Long Beach Resort & Residences, the first condotel project under the InterContinental brand in Asia, and Citadines Marina Halong, the first condotel project in Hạ Long to be managed by Ascott Limited with all units overlooking the bay.

The group is also entering the commercial property market through a partnership with AEON Mall Việt Nam to develop a 9.5-hectare mall in Hà Nội’s Hà Đông District.

First IFRS certificates awarded in VN

Nearly 80 Vietnamese financial and accounting experts received International Financial Reporting Standards (IFRS) certificates from the Institute of Chartered Accountants in England and Wales (ICAEW) in Hà Nội on Monday.

The certificates were presented after participants completed a short-term training course, which was organised by ICAEW in collaboration with Việt Nam’s Ministry of Finance and the State Securities Commission. The programme was carried out from August 2016 on a pilot basis and financed by the UK government’s Bilateral Fund.

The course is designed to meet the needs of accounting and finance staff involved in the preparation of financial statements, analysts, investors and portfolio managers, as well as regulatory authorities, standard drafters and financial, accounting and business faculties.

Upon completion of this course, most financial experts have grasped IFRS’s basic concepts, core principles and practical application. Moreover, experts are also updated on IFRS’s international practices and the challenges that may be encountered in the application of these standards.

In Việt Nam, the implementation of IFRS is also part of the Ministry of Finance’s plan to enhance transparency, eliminate barriers to financial accounting standards and strengthen competitive advantages in attracting foreign investment.

“ICAEW wishes to share knowledge, provide professional support and assist the Ministry of Finance in advancing the application of IFRS, which will help to improve transparency and professionalism of the financial sector in Việt Nam,” ICAEW’s Southeast Asia regional director Mark Billington said.

Some 131 countries and territories have mandated the application of IFRS.      

China Southern Airlines offers cheap tickets to Guangzhou, Beijing     

China Southern Airlines will offer 100 two-way tickets from HCM City to Beijing and Guangzhou at preferential prices to celebrate its 25th year of opening the Guangzhou – HCM City route.

The tickets will be available from May 14 and can be bought at the airlines’ website, Wechat, the airlines’ Facebook fanpage, and Zalo.

The carrier said that since the beginning of this year, it had carried 3,000 Vietnamese customers to China.

China Southern Airlines started its first flight from Guangzhou to HCM City in 1992 with two flights per week.

At that time, 28 flights operated per week from HCM City to Guangzhou.

The carrier also connected HCM City to other provinces of China and also had flights from Hà Nội to China.

With this development, there are now 182 two-way flights per week.

The carrier in recent years has opened more flights from Guangzhou to other countries, including Japan, South Korea, the US and Australia.      

Vinapharm to trade on UPCoM in May     

Viet Nam Pharmaceutical Corporation (Vinapharm) has obtained approval from Ha Noi Stock Exchange (HNX) to trade 237 million shares on the Unlisted Public Company Market (UPCoM), under stock code DVN.

Vinapharm will start trading on the UPCoM on May 19, 2017, at a starting price of VND10,400 (45 US cents) per share.

Vinapharm has charter capital of VND2.37 trillion and launched its initial public offering (IPO) on the HNX on June 22 last year. All of its 42,557,000 shares put up on auction were purchased at an average successful bidding price of VND10,433 per share.

Vinapharm has been officially operating as a joint-stock company since last December. Currently, this pharmaceutical company has two major shareholders holding a total of 82 per cent of charter capital, of which the Ministry of Health owns 65 per cent and strategic investor Viet Phuong Investment Group owns 17 per cent.

From the end of 2016, on the Over the Counter (OTC) market, DVN shares were being traded at some VND20,000 per share. 

95 percent social insurance fund invested in Government bonds

The social insurance fund’s remaining amount approximates VND500 trillion (US$22.03 billion), 95 percent of that has been invested by buying Government bonds with the average interest rate of 7.04 percent a year.

That was reported by Mr. Tran Dinh Lieu, deputy director general of the Vietnam Social Insurance Agency.

Mr. Lieu said that 5 percent of the fund has been used for loaning the state budget with the interest rate of 7.78 percent and deposited at commercial banks with the rate of 5 percent a year.

Last year the fund’s loaned amount reached VND34,400 billion ($1.52 billion).

According to the agency, depositing at commercial banks is difficult now with low interest rates. The law stipulates that the Vietnam Social Insurance Agency must deposit money at banks with good operation quality ranked by the State Bank of Vietnam (SBV).

However, SBV has just ranked healthy operation banks numbering five without good operation quality banks.

Interest rates have been low because banks have received deposits for less than six month terms. Some banks have got loans from the social insurance fund within 15 days.

The agency is working with the court and lawyers to reclaim overdue loans from Vietnam Bank for Agriculture and Rural Development and Financial Companies No.1 and 2. Their original debts alone total VND787 billion ($35 million).

Climate change reduces rice productivity in Mekong Delta

The Mekong Delta has completed harvest of  winter spring rice crop with productivity drop due to climate change, according to the Ministry of Agriculture and Rural Development.

The productivity reached 62.7 quintals a hectare, down 2.4 percent  compared to the last winter spring crop. The reduction occurred in most provinces in the delta.

Farmers have started sowing summer autumn crop with cultivated area approximating 677,000 hectares at the end of May, accounting for 95 percent of the area during the same period last year.

The summer autumn crop is forecast to meet with difficulties due to long lasting heat waves and complicated weather conditions.

TH true MILK reaches out to Japan

While engaging in billion-dollar high-tech agricultural projects in Vietnam and Russia, locally-owned TH Group wishes to expand to Japan.

Vietnam’s dairy queen courts fameDuring her on-going working trip to Japan, TH Group chairwoman Thai Huong attended the Vietnam-Japan Enterprise Meeting and met with many Japanese firms who are seeking investment and business opportunities with Vietnamese firms, including TH Group.

Huong said that the group would like to co-operate with Japanese partners in the sectors of high-tech agriculture, processing technology, and healthcare.

In the healthcare sector alone, Huong attached great importance to caregiving, affirming that TH Group would like to send thousands of nurses and caregivers to Japan for studies so that they can return to Vietnam to work in local hospitals and use the country’s precious herbs to treat local patients with the highest service quality.

Huong also said that due to their cultural similarities, Japan and Vietnam are uniquely positioned to co-operate and develop a safe and environmentally-friendly agriculture.

According to her, Japan’s demand for safe farm produce is fast growing, and this is offering a big opportunity for Vietnamese products, including those produced by TH Group. Also, Japan can help Vietnam improve its processing technologies.

“We would like to co-operate and share our experiences with all of you here,” Huong said. “We are developing herb cultivating areas for products which will be exported to Japan, and we would also like to introduce Japanese products in the Vietnamese market. It all goes to improve the health of both countries’ people.”

Huong also expressed her determination of developing TH Group’s brand name as Japanese firms have been doing successfully in their foreign markets, which has won great confidence from consumers worldwide.

“Japanese firms have set their firm niches in the global market and we will try to follow suit carving out a space for the traditional goods our nation is proud of,” she said.

TH Group has developed five core values for its TH true MILK products, including ‘For the health of the community,’ ‘Completely from nature,’ ‘Fresh-Delicious-Nutritious,’ ‘Environmentally friendly,’ and ‘Excellent mind-set and harmonised benefits.’

Since 2009, TH Group has also been operating a $1.2-billion, 37,000-hectare high-tech concentrated dairy and fresh milk production project in the central province of Nghe An.

Besides, while constructing a similar project worth $2.7 billion in Russia, TH Group is also considering the construction of another major project in the Republic of Bashkortostan, a federal subject of Russia.

SonKim Land announces $100 million follow-up fundraising with EXS Capital and ACA Investments

SonKim Land Corporation, a leading Vietnamese real estate developer, and EXS Capital Ltd., an independent alternative investment group within Asia, announced last week the successful closure of their first round – $46 million out of an expected $100 million – of follow-up fundraising for SonKim Land. This is the second investment led by EXS Capital into SonKim Land through the Lemongrass Master Fund, after a successful initial investment of $37 million in 2013.

For the follow-up investment, SonKim Land and EXS Capital are also partnering with ACA Investments, a leading Japanese fund management firm based in Singapore with a strong track record of investments across the Asia-Pacific region. ACA Investments has a wide variety of experience in the Vietnamese market, through investments in companies such as Bibo Mart and Cung Mua.

Hiroyuki Ono, partner at ACA Investments, said, “ACA Group is excited to co-operate with Nguyen Hoang Tuan, chairman of SonKim Land, and the SonKim Land team to mutually contribute to the development of the Vietnamese property market. This is our fifth investment in Vietnam. We have explored more than 100 opportunities in this country and identified SonKim Land as one of the few companies with both discipline and long-term vision. We hope to realise the potential demand between Japanese corporates hoping to expand into Vietnam and SonKim Land, which hopes to assist them.”

EXS Capital’s initial investment in 2013 began a multi-stage partnership with SonKim Land, aiming to build a leading real estate firm in Vietnam.  EXS Capital helped to fund SonKim Land’s growth during a challenging time in the Vietnamese real estate market – and was even able to provided superior returns to investors during that period. The success of EXS Capital’s partnership with SonKim Land represents a strong validation of both SonKim Land’s performance as well as EXS Capital’s differentiated investment approach.

Eric Solberg, CEO of EXS Capital, said, “We are pleased to be partnering again with chairman Tuan and the SonKim Land team, helping to build the company into a leading listed real estate company in Vietnam. We are proud of SonKim Land’s strong reputation of being at the forefront of design, quality, and lifestyle in the Vietnamese market. We look forward to continuing our co-operation to ensure SonKim Land’s ongoing success.”

Since 2013, SonKim Land has grown rapidly, launching several award-winning luxury properties in Ho Chi Minh City, including Gateway Thao Dien and The Nassim.

Given the success of the first round of fundraising, SonKim Land and EXS Capital are excited to partner up for subsequent rounds. The first $46 million round was issued in convertible SonKim Land bonds, redeemable at any time. Participants in this round included many of the original investors from 2013, who have chosen to bolster their position in SonKim Land, thereby signalling confidence in the company’s track record and expected future earnings.

With this additional fundraising, SonKim Land aims to continue to develop its repertoire of attractive developments across the country, including luxury residential and commercial developments in Ho Chi Minh City.

“EXS Capital’s follow-up and ACA’s initial investment into SonKim Land is strong evidence of our success in the Vietnamese property market. We have positioned ourselves as a pioneer property developer that creates unique living conditions for our customers,” said Tuan. “As a premier lifestyle brand, SonKim Land’s strategy is to focus on customers’ desires, co-operate with reputable partners, and learn from them to create customised and unique concepts for the Vietnamese property landscape. We believe that we will continue to be successful in strengthening our property development profile and improving the living standards of the Vietnamese people.”

AIA and HSBC form new bancassurance partnership

On May 16, AIA (Vietnam) Life Insurance Co., Ltd. (AIA Vietnam) and HSBC Bank (Vietnam) Ltd. (HSBC Vietnam) announced a landmark bancassurance partnership that will deliver world-class services and greater value to customers in Vietnam, offering a diverse range of insurance and financial solutions.  

This partnership between HSBC Vietnam and AIA Vietnam will provide customers access to greater financial security in various stages of their life through a broad range of protection and long-term savings solutions, including universal life (all-in-one plan) and term life (life cover) insurance, education savings, as well as medical and critical illness cover policies.

According to Pham Hong Hai, CEO of HSBC Vietnam, the country’s robust economic growth in recent years has fuelled a fast-growing middle class and affluent population with evolving and diversified needs for protection and savings for education and retirement.

“By working with AIA, we aim to provide our customers with best-in-class insurance products and services that are critical to achieving their needs and aspirations for a better life quality,” Hai said.

Wayne Besant, CEO of AIA Vietnam, added that this partnership was a natural fit for both AIA and HSBC Vietnam.

“Customer experience and innovation are at the heart of everything our companies do and we are excited to bring our talents together to create even bolder and more innovative solutions to address the ever-changing needs of our customers,” Besant said.

These joint products will help customers deal with the twists and turns of life, whether it is buying a new home, preparing for higher education, planning for retirement or dealing with critical illness. This significant partnership offers customers a complete package of financial advice and tailor-made wealth and protection solutions based on understanding of individual customers’ needs and financial situation.

AIA and HSBC form new bancassurance partnership 

The two innovators are looking to transform insurance and banking services in customers' eyes

HSBC and AIA, with their combined expertise and strengths, intend to change the way consumers access and experience insurance and banking services, and lead the market with bold and innovative ideas.

Both companies are leading innovators in their respective fields. HSBC offers streamlined financial planning through its Personal Banking and unique Premier services at all HSBC outlets in the economic hubs across Vietnam. Besides over-the-counter services, HSBC has led the way in offering online services as a result of banking service digitalisation, creating an excellent, 24-hour mobile and internet banking customer experience.

AIA is known for innovative customer experience services, such as the Nest by AIA, the interactive Point of Sales system (iPOS), the MyPage customer Portal, the customer claim tracking system GBS, and especially the industry-leading customer healthy living programme AIA Vitality—a carefully researched, science-backed wellness programme that equips customers with the knowledge, tools, and motivation to make a real change towards longer, healthier, and better lives.  

Three new air routes planned for Can Tho Airport

Plans are being put into places to support the airlines to open two new domestic and one international air route to Can Tho International Airport this year.   

Vo Thanh Thong, chairman of Can Tho City, said they were completing documents about support policies and mechanisms for airlines to open more air routes to the city before sending it to the city people's council.

Two domestic routes including Can Tho-Hai Phong and Can Tho-Cam Ranh and one international route to Bangkok, Thailand are expected to be opened this year.

Airlines will be given support to open new offices and advertise. During early days when the routes are first opened if the empty seats account for more than 30% of the total seats then the authorities will provide financial support to offset some losses for flights from Can Tho Airport.

A maximum support of VND15m (USD660) a month for a year will be given for each airline when they open new offices. Ground service fees will be discounted by 50% for regular domestic routes and 30% discount for international routes.

It is estimated to cost the city VND5bn (USD220,000) to offset losses for each airline with new domestic routes during the first year and VND8.5bn for each airline with international routes.

Currently, Can Tho International Airport provides domestic routes to Hanoi, Hai Phong, Con Dao and Danang City. The routes to Da Lat and Nha Trang City were closed because of financial troubles. The airport only has international routes to Taipei during Tet Holiday. The previous route to Bangkok also ended.

Interest rate for social housing loans

The Việt Nam Bank for Social Policies (VBSP) interest rate for social housing loans in 2017 will be 4.8 per cent per annum, or 0.4 per cent a month, according to a decision just signed by Prime Minister Nguyễn Xuân Phúc.

VBSP adjusts interest rates on a yearly basis to best reflect socio-economic circumstances, but the rate will never exceed 50 per cent the average interest rate offered by commercial banks at the moment.

The new interest rate is even lower than the 5 per cent interest rate (or not exceeding 6 per cent in subsequent years) applied in the VNĐ30 trillion (US$1.32 billion) housing stimulus package aimed primarily at social policy beneficiaries and people facing financial difficulties. When the package was totally disbursed and ended last year, many were concerned that low-income people might again struggle to save enough money for homes, since commercial banks’ rates are out of their reach.

The minimum repayment term is 15 years after the first loan is disbursed. If customers want to borrow a loan with a shorter term, they can negotiate with lending bank.

Last June, the government implemented a 4.8 per cent interest rate for social housing loans. However, it’s reportedly not easy to access the credit, since the VBSP required that the borrowers deposit their monthly savings at the bank with minimum term of 12 months, starting from the date of signing the credit contract.

According to the government’s Decree 100/2015/NĐ-CP, the following groups are eligible to loans with preferential interest rates: people with merits to the revolution, low-income people, urban poor or near-poor households,  workers working in enterprises both out of and in an industrial zone, military officers, workers under the employment of units under People’s Army and People’s Public Security, cadres and civil servants.

VN plans to triple number of ethnic-minority firms

Việt Nam plans to more than triple the number of enterprises owned and run by ethnic minority groups by next year in a bid to tap into the full potential of these groups and reduce poverty.

The plan to increase the number of enterprises run by ethnic minority groups from the current 30 to 100 was unveiled yesterday by the Committee for Ethnic Affairs.

“We (Committee for Ethnic Affairs) are determined that poverty reduction and sustainable growth in mountainous and ethnic minority areas rely on the internal power of ethnic minority communities,” said Đỗ Văn Chiến, Minister-Chairman of the Committee for Ethnic Affairs at a forum on ethnic minority development.

The plan is a start-up model expected to develop into a startup eco-system nationwide. its goal is to ensure that “No one is left behind”, said forum organisers.

Mountainous and ethnic minority areas, with a diversity of natural resources, local produce and culture, should be considered areas of development opportunities, especially in agriculture, animal husbandry, herbal medicine and tourism, Chiến said.

The forum agreed that making use of local knowledge is the foundation that must be tapped to harness the full potential of ethnic minority start-ups.

Nguyễn Thị Huyền, National Programme Coordinator of the International Labor Organisation (ILO) suggested offering business skill training to ethnic communities, helping them access capital sources. Ethnic minority people should be regarded as “creative partners”, she said, adding that it is necessary to maintain their traditional identities while developing businesses.

Local products of nearly 30 ethnic minority start-ups were on display at the forum, linking enterprises, local authorities and non-governmental organizations.

Sầm Thị Bích, leader of Hoa Tiến Brocade Cooperative in Quỳ Châu District of the central province of  Nghệ An, said that with the support from authorities and NGOs, she and other members of the village can further develop product design and access to market to promote their products at local and international  fairs.

Bích’s co-operative is a typical model for start-ups of ethnic minority groups in Vietnamese mountainous areas. She has restored the traditional weaving craft, provides training in weaving skills, and helps group members obtain material and equipment to improve their livelihood.

Central Field to open in Q3

The Central Field residential-office complex, developed by the 19-12 Bac Ha Ltd Company, will open its doors in the third quarter.

Located at 219 Trung Kinh, Cau Giay district, Hanoi, Central Field is a three-tower complex with 27 levels in each, including two residential towers and one office tower with a five-floor retail podium.

CBRE Vietnam has been selected by 19-12 Bac Ha to be the exclusive leasing agent for the retail and office space.

It will begin a leasing campaign for the retail and office space this month. Situated in a convenient location and with a practical design, Central Field is expected to be a great choice for businesses looking for Grade B office space in the west of Hanoi.

“We have put a lot of effort into Central Field and strongly believe that the project will become the most ideal and convenient office destination in Cau Giay district,” said Ms. Tran Thi Thanh, CEO of 19-12 Bac Ha. “After a careful selection process, we decided to appoint CBRE Vietnam as our exclusive leasing agent. Leasing activities will be taken care of by the experienced and professional leasing team at CBRE Vietnam.”

“CBRE Vietnam is honored to be appointed as the exclusive leasing agent for Central Field,” said Ms. Nguyen Bich Trang, Director of CBRE’s Hanoi branch. “The project will add to the diverse supply of Grade B offices in the west of Hanoi, given its convenient accessibility and reasonable price, which is suitable for businesses with modest budgets.”

Tink Labs provides online travel solution in Vietnam

Tink Labs Limited, one of Hong Kong’s most successful startups and which has revolutionized travel and tourism, has recently announced it is bringing its mobile travel solution Handy to Vietnam as part of its global expansion.

Handy devices, first launched in September 2012, help to deliver hassle-free travel and meet growing demand for internet connection services. Tink Labs flagship’ innovative smartphone is a complimentary amenity in partner hotel rooms, integrating with hotel services and offering travelers unlimited connectivity on the go as well as tailored travel guides.

The Handy service benefits Vietnam as a tourist destination by making the country more traveler-friendly. The platform likewise provides local governments with a more personalized channel for engaging with travelers and helps visitors navigate smart city services and initiatives more easily.

Handy is now available in 20 cities, covering 100,000 rooms and helping 12 million global travelers stay connected. The service is a trusted partner of leading hotel groups including Ritz-Carlton, Intercontinental, Sheraton, and others.

“Our launch in Vietnam further demonstrates that Handy’s unique offering is transforming hospitality and tourism for the better,” said Mr. Terence Kwok, founder and CEO of Tink Labs. “As we grow we remain committed to working with the right business partners to satisfy our vision to scale globally and offer travelers the freedom they deserve.”

Beyond connecting visitors in Vietnam, Handy helps local hoteliers differentiate and unleash untapped revenue potential, creating a personalized experience to retain customers. Consumer usage in other markets has demonstrated that Handy extends the hotel service footprint and increases the use of hotel services, boosting incremental revenues by approximately 20 per cent.

Handy has also helped to elevate the quantity and quality of customer satisfaction, increasing Trip Advisor ratings by an average of 0.31, which translates to a 3.4 per cent increase in revenue per available room (RevPAR). The platform’s data and analytics will also help hotel partners in Vietnam better understand customers to provide more personalized services and increase hotel service utilization.

The complimentary service enables visitors to travel like a local, finding connectivity and information they need at no cost, with curated city guides, free unlimited local and international calls, free internet access, speed dial to hotel services, and local emergency and essential travel information.

Handy, the flagship product from Tink Labs, is an innovative mobile travel solution that combines the functionality of a personal smartphone and hotel services into one fully-integrated device. Each smartphone is customized for the hotel and provides travelers with free unlimited internet, local and international calls, as well as an interactive city guide and one-click access to the hotel’s concierge and amenities. It is already available in 20 cities, covering 100,000 rooms, and has helped 10 million global travelers stay connected.

Fresh milk with brand name Cu Chi to be released in market

Fresh milk with brand name Cu Chi will be released in the market in early June, annonced Deputy Chairman of People’s Committee in Cu Chi Nguyen Huu Hoai Phu at a meeting with Party Committee in Ho Chi Minh City on May 17.

At the meeting to report the management role in the government rural plan, Mr. Phu said the launch of the fresh milk is concerted efforts in creating brand name and help farmers to consume dairy products.

Tan Thong Hoi Cooperative invested VND100 billion ($4.4 million) in building a factory with capacity of six tons milk a day.

At present, the local government encouraged 70,000 students to consume fresh milk brand name Cu Chi and to introduce the dairy product in supermarkets. Cu Chi District is raising 72,000 milk cow supplying 600 tons of milk a day yet it has no brand name.

Talking about future orientation, Cu Chi Party Secretary Mr. Truong Van Thong said that the administration will not increase the figure of milk cow but pay attention to improve quality and milk quality as well as breed cow in large-scale farms in far away locations from residential blocks and apply high technology.

Pork price surges

Head of the Department of Animal Husbandry Hoang Thanh Van said at a seminar on May 17 that pork price had increased and 200,000 tons of pork had been sold out.

As of May 17, the country has 1.5 millions of pigs. Around 200,000 tons of pork had been sold for these days. Mr. Van said that pork price increased by VND8,000 – 9,000 per kilogram in some regions, making a good sign for breeders.

Participants of the seminar said that it posed high mishap for breeders if the government has not tightened control of the commodity but let markets be taken over by retailers.

Accordingly, farmers sold pigs at very low price as it maintained high in supermarkets and traditional markets. Consequently, the Government should issue husbandry law to handle the matter.

Though the price hiked, the Ministry of Agriculture and Rural Development admitted the price is still lowest in ten years since 2007 and pig farmers still suffered loss of VND 1-VND1.5 million a pig. The Ministry will be quick to implement measures to help pig farmers and stabilize the country’s husbandry sector.

In the southern province of Dong Nai, 11 stands were set up to sell pork at VND30,000 per kilogram and big companies have bought pigs for storage.

Dong Nai, HCMC, Hanoi and the northern provinces of  Hai Duong, Thai Binh, Nam Dinh, Ha Nam also adopted measures to resolve the problem by connecting breeders, slaughterhouse owners and enterprises.

Expert sees no need for SME support law

Vietnam should create a transparent and level playing field for businesses, instead of building a law supporting small and medium enterprises (SMEs), said Dr. Vu Thanh Tu Anh, director of research at Fulbright University.

Speaking at a talk held in HCMC on May 15 on Vietnam’s economic performance in the first four months of the year and outstanding Government policies, Anh said such support would lead businesses to develop a sense of reliance.

Moreover, the draft law contains multiple counterproductive provisions. Firstly, if SMEs enjoy tax breaks, large corporations may be split into smaller units to gain access to this tax support.

Secondly, the draft law allows SMEs to access loan interest support but the problem is where funding will come from at a time when the Government has an extremely tight budget.

“This draft law looks unworkable and impractical,” said Anh.

Vietnam has a slew of legal frameworks supportive of SMEs. But a survey which the Vietnam Chamber of Commerce and Industry (VCCI) released earlier this year showed the proportion of SMEs that have taken advantage of them is only 15%. Therefore, a law on SME support would prove to be redundant, he noted.

According to Anh, if the Government really wants to support SMEs, the most important thing is to create a business environment with fair competition and transparency, and to help businesses cut costs.

The current business ecosystem in Vietnam is unhealthy, Anh said. State-owned enterprises (SOEs) benefit from monopolistic rights while foreign-invested companies are entitled to a host of policy incentives. “SMEs can never be able to compete with those giants.”

In assessing Vietnam’s economic situation, he said it would be impossible to achieve the GDP growth target of 6.7% this year because productivity is edging down. Still, Vietnam can translate the target into reality by injecting more money into the economy or pumping more crude oil but these measures could destabilize the economy.

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