Digital economy offers SMEs a bright new world of opportunity

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Da Nang works to make IT spearhead sector

The central city of Da Nang has become an attractive destination for more and more domestic and foreign investors operating in information technology (IT) and communications thanks to tireless efforts made by the local authorities to improve the quality of human resources and infrastructure for the sector. 

Da Nang is one of the leading localities in the country in developing IT and software industry.

Statistics from the municipal Department of Information and Communications, about 20,000 people are working in Da Nang’s IT sector, significantly contributing to promoting the development of software technology in the city. 

Many international training programmes with high quality have been implemented in Da Nang, meeting the demand of domestic and foreign software firms. 

Notably, Da Nang University has cooperated with Washington and Portland Universities of the US, Grenoble and Marseille Universities of France in training Digital System, Embedded System, automated production and automation, software engineering and industrial computing. 

Duy Tan University has set up training linkup with Carnegie Mellon University in the US. Meanwhile, the Vietnam-Korea Friendship Information Technology College has also collaborated with IT partners from Japan and the Republic of Korea to develop training courses in the field. 

A number of cooperation agreements on IT training have been signed between the international programmer training centres NIIT and Softech-Aptech and Indian companies. 

Da Nang is now home to nearly 700 IT enterprises, mainly specialising in software producing and outsourcing (43 percent); IT product distribution and sale (29 percent); electronics and hardware assembly and manufacturing (7 percent); digital content production and supply (5 percent) and other IT-related services (6 percent). 

In 2017, the city’s information and communications sector maintained stable growth, with total revenue hitting 21.75 trillion VND, 3.5 percent higher than the yearly target and increasing by 9 percent compared to 2016.

In particular, the information technology sector (software technology and digital content) earned 14.4 trillion VND. Its software export revenue reached 67 million USD, up 15 percent against 2016. 

According to the municipal Department of Statistics, the IT sector contributed about 5.4 percent of the local GDP in the year. 

As of 2017, the Da Nang Software Park had been fully filled. It is now home to 75 domestic and foreign IT businesses with a total investment capital of nearly 1.8 trillion VND, creating jobs for 2,400 people. The revenue of businesses operating in the park has grown through years.

Around 43 percent of nearly 700 IT businesses in the city specialise in software producing and outsourcing. Many large domestic and foreign software businesses have established their offices in Da Nang, including FPT Software, Axon Active, Gameloft, LogiGear, MagRabbit, Global Cybersoft, Enclave, Asnet, SDC (Software Development Centre of Da Nang University) and NAL Solutions. These companies provide software-outsourcing services for partners in Japan, North American, Australian and Europe.

Las year, Da Nang’s software park was recognised as a centralised information technology centre – the third of its kind in Vietnam after two in Hanoi and Ho Chi Minh City. 

The city has called for investment in a software park in the Da Phuoc International urban area and the 341-ha Da Nang IT Park.

In 2015, the city’s e-government system was transferred to 16 cities and provinces towards building smart cities including the IT and communications infrastructure, IT applications, policy and mechanisms for IT and communications and IT manpower resources.

In April 2018, the local authority and FPT Group - a Vietnamese software giant, signed a Memorandum of Understanding (MoU) on building Da Nang as a ‘smart city’ for the 2018-20 period.

As planned, FPT will invest 15 billion VND (664,000 USD) in building pilot projects with smart applications in 2018-19.

According to Vice Chairman of the municipal People’s Committee Ho Ky Minh, the city’s e-government system, which was launched in 2014, had been used by 225 agencies and 4,000 users. About 50 percent of public procedures were also posted online.

Da Nang’s IT infrastructure was now available for smart connections among air control, water, garbage, meteorology, and energy agencies. It could also provide earthquake and tsunami warnings, and data on flooding, erosion, sewage management, and bridges.

The city will be ready for 4G LTE (Long-Term Evolution) this year.

Free wireless internet (wifi) services, with a maximum of 20,000 connections, was also offered for local residents and tourists at major centres and streets in the city, including living quarters, tourist sites, schools, beaches, hospitals,  and shopping malls, alongside bus and railway stations, airports and entertainment centres.

Da Nang plans to become a ‘smart city’ by 2020 and a ‘green city’ by 2025.

Nghe An invests in VietGAP standard shrimp breeding area

Quynh Luu district has the biggest shrimp breeding area in Nghe An with total area of 75 hectares. The locality is pushing forward to broaden shrimp breeding area in accordance with VietGAP standards.

The number of households farming shrimp in Quynh Thanh commune, Quynh Luu district stands at 127, with 31 applying the VietGAP standard shrimp breeding programme.

Local residents realise that to venture into the international markets, their shrimp products must meet certain standards. One of those is heightened shrimp quality, and by complying to VietGAP standards, it will set the shrimp production industry of Nghe An on the right track.

Ho Si Chat, Resident from Quynh Thanh commune, Quynh Luu district, Nghe An province: "Our household has invested about 23,000 USD into this, with an area of more than 3000m2, our yield this year reaches 7 tonnes of shrimps."

Farmers are required to follow rules if they want to get the VietGAP certificate, including in pre-treatment of breeding area, food source and techniques. Thanks to applying VietGAP standards, yield has increased up to 15 tonnes per hectare. Up till now, Quynh Thanh commune has yielded more than 326 tonnes of shrimp.

Ho Huong, Resident from Quynh Thanh commune, Quynh Luu district, Nghe An province: "The young shrimp suppliers have provided us with the shrimp species so that we can raise the quality of shrimp products."

By applying VietGAP standards, shrimp farming projects in Nghe An have brought wealth to the residents and improved their livelihoods. The biggest result is that farmers have changed their production mindset to a more sustainable and environmentally friendly production method.

Kien Giang targets 9.5 billion USD for socio-economic development

The Mekong Delta province of Kien Giang aims to mobilise 9.5 billion USD for socio-economic development by 2020 and 45 billion USD by 2030.

The adjusted target was recently approved by the PM as part of a master plan to 2020 and towards 2030 for the province.

Kien Giang targets becoming a well-developed locality and a transportation and tourism service destination in the Mekong Delta, and a development hub of the southern key economic region.

The province aims for an average Gross Regional Domestic Product (GRDP) of 7.5-8 per cent per year by 2020.

Also, the province is striving to improve quality of transport services, while promoting its advantageous geographical location and natural conditions of the province.

The province has so far this year attracted 41 FDI projects from 19 countries and territories with a total registered capital of $1.44 billion, of which 37 per cent has been disbursed. 

Quang Ninh province takes steps to improve tourism services

Improving tourism services without increasing prices will make the northern coastal province of Quang Ninh become more attractive to both domestic and foreign holiday-markers, said Secretary of the provincial Party Committee Nguyen Van Doc.

As visitors have a wide range of choices of destinations for their holidays, Quang Ninh has to channel more efforts to become alluring to them, he said.

Joining the province’s efforts towards a modern and hospitable tourism locality, Ha Long city is working towards sustainable tourism development and creating a fair competitive environment. Strict surveillance has been carried out to ensure that no goods with unknown origin are sold to the visitors. 

Price listing has come under rigorous scrutiny while spontaneous tourism services are banned.

The city is accelerating investment in some beaches in Ha Long Bay, striving to bring Soi Sim beach into operation in the end of June to ease pressure on Titov beach. In addition, it will enhance management of tourism boats, and quality of means of rescue. The moves aim to create satisfaction and ensure safety for tourists.

The tourism sector of Quang Ninh province has been growing at a fast pace in recent years, establishing its important role in the province’s economy and moving towards sustainability. 

Quang Ninh is endowed with natural advantages for sea and island tourism. It is home to the Ha Long and Bai Tu Long Bays, the Ha Long Bay National Park and some well-known islands like Co To and Van Don. 

In particular, Ha Long Bay has been twice recognised as a World Natural Heritage site by the United Nations Educational, Scientific and Cultural Organisation (UNESCO). The Heritage site has become a magnet drawing visitors to Quang Ninh. 

Besides, Quang Ninh is expanding space for sea and island tourism farther from Ha Long Bay towards islands such as Co To, Van Don and Hai Ha.

Equipped with a strategic vision for developing the sea-based economy, the province in 2014 approved an Overall Plan for tourism development to 2020 with a vision to 2030. Under the scheme, the sea space in Quang Ninh is divided into five zones, which are the strictly preserved Ha Long Bay, the conservation area in Bai Tu Long National Park, the tourism zone, the zone with restricted development to serve national defence and security, and the zone with no development. Each zone, with their specific characteristics, has close links with each other to support the development of sea-based tourism and economy while ensuring national defence and security and serving the province’s sustainable development.

The Overall Plan has made positive impacts on the local tourism sector, helping attract a series of investment projects. Many big investors such as Vingroup, Sun Group, Myway, Tuan Chau and FLC have poured money into tourism infrastructure and entertainment facilities in Quang Ninh.

Also during the 2010-2017 period, the province’s administration issued many directives, resolutions and decisions on concentrating resources on tourism development, especially Resolution 07-NQ/TU dated May 24, 2013 of the provincial Party Committee. At the same time, the provincial authority strengthened leadership and guidance over tourism development.

Guided by the strategic orientations, Quang Ninh’s tourism sector has recorded high growth in the number of visitors, revenue, workforce and service infrastructure.

The province has paid attention to the creation of new tourist products and improvement of service quality. A diverse range of sea and island tours are now available for visitors, from relaxation to entertainment and adventure.

All those efforts have contributed to building and establishing a unique trademark for Quang Ninh sea-based tourism.

In 2017, a total of 9.87 million tourists visited the province, including 4.28 million foreigners. More than 70 percent of the tourists came in sea and island tours. 

In 2018, Quang Ninh welcomed more than 10 million visitors, and 4 million of them came from other countries. The province aims to attract over 12 million visitors this year, including 5 million foreigners.

Hà Nội-Hải Phòng Expressway incurs losses

The Hà Nội-Hải Phòng Expressway is costing its investor more than $100,000 a day.

Vietnam Infrastructure Development and Finance Investment Joint Stock Company (VIDIFI) has incurred average losses of VNĐ2.5 billion (US$108,700) a day or VNĐ900 billion ($39.1 million) per year, according to a report recently sent to the Ministry of Transport and the Directorate for Roads of Việt Nam.

Total toll collection for the Build-Operate-Transfer project was estimated at more than VNĐ2 trillion ($87 million) last year including more than VNĐ1.25 trillion ($54.4 million) from seven toll booths and nearly VNĐ833 billion ($36.2 million) from other two booths located at National Highway No 5.

On average, each day the project collected some VNĐ5.7 billion ($248,000), against the costs the company incurs operating nine toll booths and road maintenance.

The firm also has interest costs of about VNĐ8 billion ($348,000) daily for various loans it took out for the project, including two loans worth $300 million from KFW, the German government-owned development bank and Export-Import Bank of Korea (Kexim Bank).

VIDIFI said the total unsettled debt owed to Kexim Bank to be paid by 2044 is $23 million while the debt owed to KFW due by 2023 is nearly $54 million.

The financial plan of the project states that the State will help pay off the debts to KFW and Kexim Bank.

In 2015, Prime Minister Nguyễn Xuân Phúc decided to use State budget to assist the project, but so far no State funding has been provided.

“The slow allocation of State budget to pay off foreign debts by 2020 will have serious impacts on finance and capital balance of VDB and VIDIFI. The finance ministry will lack capital to pay off foreign debts,” a VIDIFI representative said.

To repay loans from foreign credit organisations, VIDIFI has asked the Ministry of Planning and Investment to push the National Assembly Standing Committee for State funds.

The current toll fee rate at the Hà Nội-Hải Phòng expressway is VNĐ2,000 ($0.09) per km for each vehicle, the highest in Việt Nam.

Nguyễn Văn Thanh, chairman of Vietnam Automobile Transportation Association, said “Despite the high fee rate, the project has still incurred losses. We should slash the fee. The lower the fee stays, the more vehicles will go through. It then will increase toll fee collection.”

The Hà Nội-Hải Phòng Expressway covering 105.8km with six lanes was opened to traffic in December 2015. It helps reduce traffic flow on National Highway No 5 and connects the highway with ports, airports and tourism spots.

The investment capital approved in 2008 was more than VNĐ24.5 trillion ($1.1 billion). However, cost overrun from increasing expenses on construction, equipment and land clearance pulled the total investment up to nearly VNĐ45.5 trillion ($2 billion). 

Sustainable development reports for listed firms     

The HCM and Ha Noi stock exchanges and the Global Report Initiative (GRI) on Monday organised a joint seminar to discuss the compilation of sustainable development reports for Vietnamese listed companies.

According to the Global Report Initiative (GRI), sustainable development reports have become familiar to listed companies since the Circular 155/TT-BTC regulating listed firm’s information disclosure took effect on May 1, 2016.

However, few listed companies have delivered high-quality sustainable development reports and used the worldwide GRI standards to develop their reports, thus, the overall quality of reports among Vietnamese listed firms is fairly low at the moment, GRI reported.

Vietnamese companies are compiling their sustainable development reports in a way that is not regulated and they do not follow any standards, so their reports have failed to meet investors’ demand, GRI said.

If listed companies perform better in developing their sustainable development reports, they will obtain more information about economic-environmental-social impacts of their business and make right business decisions, GRI said.

Specialist Nguyen Cong Minh Bao from GRI Viet Nam said: “We are inviting listed companies to take part in the Competitive Trade Programme funded by the Swiss government to help them compile sustainable development reports and assure their business operation is not interrupted.”

Listed firms will be free to participate in training and get access GRI’s online report system so that they are able to understand how reports are conducted, he said.

The Vietnamese Government has recently issued the National Action Plan to implement the 2030 Agenda for Sustainable Development Goals regulated by the United Nations.

“Investors, especially international institutions, are looking for more non-financial information from businesses as evidence for sustainable and efficiency performance of the targeted companies,” said Pham Nguyen Vinh, corporate development director at Dragon Capital Group Limited.

According to Le Cong Dien, Director of the State Securities Commission (SSC)’s Public Enterprises Supervisory Department, Viet Nam has been encountering challenges and trade-offs between economic growth and environmental impacts such as climate changes, work safety and environmental pollution.

In that context, the Prime Minister in 2012 issued Decision 1393/QD-TTg regulating the national green growth strategy for the country’s sustainable economic development. For the financial sector, the Minister of Finance in 2015 issued Decision 2183/QD-BTC regulating the sector’s action plan on the national green growth to 2020.

Companies traded on the stock market have integrated environmental, social and corporate governance issues into their reports and strategies, which have helped them to identify the risks and develop corresponding provisional plans for those risks.

As the main market regulator, the State Securities Commission has continuously adjusted and improved the market’s legal framework so that the market operation is transparent, public and efficient to become a sustainable-developed market.

SSC has recently developed and issued Circular 155/TT-BTC instructing listed companies on information disclosure, in which listed firms have to include their environmental-social impacts and corporate governance. This has remained one of the most important legal documents to push local enterprises raise their awareness and practice of sustainable development.

Dien said that SSC in 2018 will ask its units to study and launch a set of standards on publication of sustainable development reports, including figures and data on social-environmental impacts and corporate governance.

SSC will also issue the Code of Corporate Governance to improve the legal framework on corporate management and help the Vietnamese equity market meet international standards, and help listed companies, stock exchanges and financial institutions carry out improve their corporate governance efforts, he said. 

Measures sought to improve human resources in FDI firms

Measures to improve the quality and working efficiency of employees working in foreign direct investment (FDI) enterprises in line with Vietnam’s foreign investment attraction orientation were discussed at a seminar in Hanoi on June 19. 

Jointly held by the Ministries of Planning and Investment and Labour, Invalids and Social Affairs, the event focused on multi-dimensional views of labour status in foreign-invested enterprises.

Addressing the workshop, Deputy Minister of Planning and Investment Vu Dai Thang stressed the need to review and evaluate the overall situation of labour in the FDI sector in recent time, thus rolling out appropriate and breakthrough solutions to better the quality of human resources working in FDI firms.

This aims to optimise FDI flows which tend to go to Asian countries, including Vietnam, he said. 

Dr. Le Van Hung from the Vietnam Institute of Economics highlighted that FDI plays an important role in the productivity growth of countries that receive investment as it helps shift the structure of labour from the low-productivity industries to those with higher productivity. 

In addition, investment recipients expect that FDI enterprises with their advantages of technology, market and management, will have higher labour productivity than domestic firms, he noted.

Linkages between domestic and FDI firms promote the transfer of advanced technologies, he said, adding that the presence of FDI companies raise competition pressure, forcing domestic businesses to improve their ability and competitiveness. 

Hung said that Vietnam's labour productivity growth has improved gradually, reaching 5.5 percent per year in the 2014 - 2016.

Among economic sectors, the FDI sector always has the highest absolute labour productivity because it concentrates mainly on processing industry, while the domestic firms majorly operate in agricultural and unofficial fields, which have low absolute labour productivity.

However, Thang also pointed out shortcomings in the FDI sector, saying that foreign firms have yet to establish close links with Vietnamese peers to jointly participate in value chains and promote the development of support industry in Vietnam. 

The transfer of technology and management experience has not been as expected, he noted, adding that there are phenomena of transfer pricing, tax evasion or violations of regulations on environmental protection. 

To improve the efficiency of labour productivity in FDI firms, Vietnam needs to pay attention to the quality of FDI flows instead of quantity, Hung said.

FDI attraction should be closely linked with the national development strategy, with priority given to a number of sectors and areas with comparative advantages by region, especially those operating in deep-processing, high technology and new energy. 

Vice Chairman of the Bac Ninh provincial People’s Committee Nguyen Van Phong emphasised the need to take measures to support labourers working in FDI firms.

Meanwhile, Vice Director of the Department of Labour, Invalid and Social Affairs of Dong Nai province Pham Van Cong recommended the pilot formation of ecological industrial parks, which will attract only FDI and domestic firms operating in the same field and those have linking with and supporting each other.

“For example, industrial parks for coffee and rubber processing enterprises could be formed in the Central Highlands, while those for processing products related to fruit and rice should be built in the Mekong Delta region”, Hung said.

Sóc Trăng investment conference pays off     

The Mekong Delta province of Soc Trang received pledges for investments worth nearly VND123 trillion (US$5.4 billion) in 47 projects at an investment conference on Tuesday with a focus on renewable energy, high-tech agriculture and tourism services.

“I’m delighted to witness the huge investment of $5.4 billion, which will soon come to the province,” Prime Minister Nguyen Xuan Phuc told the conference.

He expressed the belief that in the coming decade Soc Trang would expand its economy to achieve middle-income status.

“We should have strong belief to act aggressively to make Soc Trang move forward.”

He suggested three development trends for the province: high-tech agriculture adapted to climate change, clean seafood production and processing targeting high-class markets and eco-tourism linked with clean and smart agricultural models.

With respect to tourism he pointed to the cultural advantages the province has in terms of language, religion, beliefs, cuisine, and festivals.

“Soc Trang Province must develop a new belief and inspiration for its residents and the national and international business community.”

He instructed local authorities to pay attention to human resources and education, saying they hold the key to sustainable development.

“We must stop thinking on the basis of borders. It is necessary to have inter-regional thinking to take advantage of all available resources.”

He called for creating a co-operation model between farmers, authorities, investors, banks, scientists, and distributors, and for the province to develop value chains and quality standards for agricultural products.

“Let us work together with national and international distributors, like supermarkets, to promote sales and increase the value of high-tech agricultural products.”

He said the province must also improve its business environment to become more attractive to local and foreign investors.

“Authorities and industries must work together to cope with climate change.”

He called on local authorities to create the most favourable conditions for investors, balance the need for investors’ profits with social welfare and not offer too many incentives to investors while depriving locals of benefits brought by development.

“I would like all investors and enterprises to actively undertake corporate social responsibility. Incentives should be paid back by contributing to society.”

Soc Trang in Khmer means “Treasure Land”, and he expressed the belief that in future the province would be a place where investors find their treasure.

Participants were updated on Soc Trang’s investment incentives, other investment-related information and the list of projects seeking investment.

Since 2016 investment in Soc Trang has grown thanks to administrative reform by the local government. It has set up a taskforce to resolve all difficulties faced by investors.

The province has winds averaging speeds of 6-6.2 metres per second, which offer enormous potential for generating wind power.

Like most other places in the tropical country, its solar power potential is also huge.

The Ministry of Industry and Trade has approved 22 locations for wind power development in the province with 35,740 hectares, where plants can be put up with a total capacity of 1,470MW.

Soc Trang also boasts great agricultural potential thanks to its fertile soil and excellent climate.

Agriculture, with many key items, contributes significantly to the local economy.

Its rice output last year topped 2.11 million tonnes, with speciality varieties accounting for almost half.

It has more than 74,000 hectares of aquaculture lands, 50,000 hectares of have been set aside for brackish-water shrimp breeding, mostly along the coast.

Its fisheries exports were worth $570 million last year.

Livestock farming has been growing strongly, with a dairy cow-breeding programme in 2013-2020 proving efficient and expanding to many districts and towns. There are 9,720 cows which provide 2,880 tonnes of milk a year.

Soc Trang also has strengths in the maritime economy with ports and shipping services being major segments.

It has in place a master plan to develop its coastal economy through 2020 with a vision to 2030.

The province is seeking the Government’s approval to build a deep-water port and hopes to involve investors with deep pockets in the project.

It plans to prioritise connectivity between its ports, urban areas, industrial parks, and tourism sites along the Hau River, while developing sectors like aquaculture, beach tourism and energy.

With aquaculture being a major pillar of its economy, the province plans to pilot an irrigation model for specialised shrimp farming in Tran De District and Vinh Chau town.

To develop tourism, the province has joined hands with Ba Ria-Vung Tau Province to operate a speedboat to Con Dao Island.

It has sought investment in many eco-tourism sites like Ho Be in Vinh Chau Disrict and Mo O in Tran De District.

The investment conference was attended by Party and State leaders, officials from ministries, localities, international organisations, foreign diplomatic agencies in Viet Nam, trade and investment promotion organisations, finance and credit institutions, economic associations and groups, and local and foreign companies.

VSIP Quảng Ngai draws $383m     

The Viet Nam-Singapore Industrial Park (VSIP) in the central province of Quang Ngai has attracted 17 projects worth a total US$383 million since it commenced construction in 2013.

The management board of VSIP Quang Ngai said the park, which was built on 600ha of land in the Dung Quat Economic Zone and 520ha of adjacent urban land had an investment capital of $337.8 million. Eight projects are currently operational in the fields of leather, textiles and garments, foodstuffs, and beverages, creating more than 13,500 jobs for local residents and experts.

Hebei Xindadong Textiles Company of China was seen as the biggest investor in the park with $38 million, followed by Hong Kong shoe maker Properwell, and Singapore’s UMW Equipment Systems – an industrial and heavy machinery plant.

According to the Dung Quat Economic Zone Authority, an investor can get certification to operate at the park’s one-stop service centre in just one day.

The park, situated in Son Tinh district, 8km north of Quang Ngai City, has been developing an urban area and residential zone to accommodate 15,000 workers.

VSIP has developed eight parks nationwide, including in the provinces of Bac Ninh, Hai Phong, Hai Duong, Quang Ngai and Nghe An, alongside three in Binh Duong Province.

The industrial parks are spread over a total of 7,000ha, and have attracted investments from 760 investors, totally nearly $12 billion, and creating 210,000 jobs. 

S Korea enforces tighter control on imported products     

South Korea will enforce the Positive List System (PLS) to strengthen the safety management of whole imported agricultural products, including those from Viet Nam, as of January 1, 2019.

The information was released at the conference, which was jointly held by Viet Nam’s ministries of Industry and Trade (MoIT) and Agricultural and Rural Development (MARD) and the South Korean Ministry of Food and Drug Safety in Ha Noi yesterday.

The conference aimed to introduce Vietnamese exporters to its new management system of pesticide residue listing for imported agricultural products and help them minimise risks when they export agricultural products to South Korea.

Deputy Head of the MoIT’s Department of the Asia-Africa Market Le An Hai said South Korea had applied a new management mechanism on the list of pesticides in oilseeds and tropical fruits. Therefore, if the pesticide residue had not been registered for the maximum residue limit (MRLs), the products would be applied at the default level of 0.01ppm.

Hai said although this regulation was generally applied for all countries, it would limit the number and types of pesticides used in disease control in Viet Nam and directly affect the export of key products of Viet Nam such as coffee, peanuts, cashew nuts and tropical fruits.

Nguyen Quoc Toan, acting director of MARD’s Agricultural Market Processing and Development, said although Viet Nam’s agricultural products had great export potential, the direct exports of fruit to markets such as South Korea, Japan, Taiwan and Europe would only grow if the products met technical standards in production and preservation.

“This is the key point for fruit in particular and agricultural products in general to increase in volume and export value,” said Toan.

Lee Soon-Ho, a representative from the South Korean Ministry of Food and Drug Safety, took a closer look at South Korea’s import of safe agricultural products from its main trading partners, including Viet Nam, in order to show types of fruit that Viet Nam needed to pay special attention to on pesticide residues when exporting to Korea.

He also warned Vietnamese businesses of 370 pesticide categories that would be subject to in-depth inspections at the designated port of entry in Korea, in which nearly 140 units had not registered safety standards on pesticide residues in this market.

Therefore, Vietnamese exporters need to pay close attention to the fact that only products with safe standards of residue will be allowed to enter South Korea. Vietnamese producers and exporters should review their export products and then send registration dossiers on safety standards on residues to the South Korean Ministry of Food and Drug Safety.

Statistics from MoIT show that over the past 25 years, since the establishment of diplomatic relations, bilateral trade between Vietnam and South Korea has grown significantly. In 2017, the two-way trade turnover reached US$61.5 billion, 123 times more than in 1992 when diplomatic relations were established, accounting for 14.4 per cent of Vietnam’s total export and import to the world.

In 2017, South Korea emerged as the second largest trading partner of Viet Nam (after China) and Viet Nam was the 8th largest export market to South Korea. South Korea is also the largest foreign investor in Viet Nam in terms of total investment capital ($59.2 billion) and the number of projects (approximately 7,000). 

VN’s airports serve 43.3mn passengers since January 2018     

Viet Nam’s airports served 43.3 million passengers and transported over 603,000 tonnes of cargo in the first five months of this year, said the Civil Aviation Administration of Vietnam (CAAV).

The figures represented a year-on-year increase of 15.4 per cent and 8.4 per cent, respectively.

CAAV also announced that of the total, domestic carriers transported 20.4 million passengers and 487,000 tonnes of goods.

As of May 15, the number of planes registered for Vietnamese nationality was 174, up by five planes compared to the end of 2017 and up by 18 planes in comparison to the same period last year. Of this, flag carrier Vietnam Airlines owns the highest fleet, with 91 planes, followed by Vietjet Air (54) and Jetstar Pacific (17).

This year, Vietnam Airlines aims to serve more than 24.3 million passengers. In 2017, it operated 140,000 flights serving 22 million passengers. Meanwhile, low-cost carrier Vietjet Air plans to operate more than 120,000 flights and serve more than 24.1 million passengers by the end of 2018.

Last year, it served over 17.11 million passengers by operating more than 98,800 flights.