Whopping rise in steel imports from India

Steel imports from India posted a whopping increase in the first six months of this year, customs’ statistics revealed.

Việt Nam imported 812,000 tonnes of steel from India worth US$422 million, representing a rise of more than 20 times in volume and 13 times in value over the same period last year.

The General Department of Customs said the huge increase in steel imports from India was attributed to low prices. Average price of steel from India was VNĐ11.8 million (US$519) per tonne, VNĐ1 million lower than China, the world’s largest steel producer, and VNĐ1.4 million lower than the average steel import price to Việt Nam.

India is the world’s third largest steel producer.

According to Đỗ Duy Thái, chairman of steel company Pomina, Indian steel was now more competitive in price in comparison with Việt Nam’s top steel exporters, including China, Japan, South Korea and Taiwan, which had average prices of between $564 and $573.

Việt Nam imported a total of more than 7.9 million tonnes of steel in the first half of this year at total value of $4.61 billion, dropping by 17.3 per cent in volume but up 21.8 per cent in value over the same period last year. Steel import prices averaged $582 per tonne.

Việt Nam mainly imported steel from China - 3.95 million tonnes worth $2.23 billion - decreasing 23.8 per cent in volume but increasing 12.3 per cent in value, with average price of $564 per tonne.

More than one million tonnes were imported from Japan at a value of $646 million during the period.

Mobile advertising seen growing

Mobile advertising, a medium that has yet to attract the attention of Vietnamese consumers, is poised to grow in the coming time, according to Kantar Media Vietnam.

This forecast is based on the fact that the country has more than 107 mobile subscribers though the population is around 90 million.

A survey which Kantar Media Vietnam conducted in the nation’s four major cities, Hanoi, HCMC, Danang and Can Tho, indicates mobile advertising ranks third after television advertising and billboards.

Up to one-fourth of respondents said they did not like mobile advertising while 19% said they liked it. Billboard advertising comes in second in terms of viewership, according the Kantar Media survey.

TV advertising has remained the leading advertising medium, with “likes” accounting for 87% of respondents. This explains TV stations made up 92% of VND10.94 trillion ad revenues in the first half of this year.

The country has seen a sharp pickup in Internet users with more people using the Internet on their mobile devices. Of note is the Internet is the second most-used medium after television in the four cities.

In terms of demographics, people in the age group of 14-25 spend 50% of their time on the web while Internet use gets less among older groups.

The number of people using the Internet on their computers and mobile devices would leap when more people join the 14-25 age group. This means demand for mobile advertising would rise accordingly.

Television remains a medium that has the biggest influence on consumers’ buy decisions, with more than 45% of respondents agreeing with this point. Meanwhile, the proportion among mobile device users is only 1.75%, according to the survey done in March this year.

Mobile advertising revenues now represent a mere 1% of the total on the market. Most of those ads are texted as spams, thus frustrating users of mobile devices.

A few companies like Densu and Goldsun Media Focus have made use of good ad technology, such as augmented reality on mobile devices.

Popular advertising forms in use on the market include PopUp, CatFish, Sponsored Post, CPA and Apps while interactive ad technologies include barcode, Qrcode, Augmented Reality.

An interesting point found by the survey is 10% of the population with the highest incomes and education use the Internet longer than those watching TV on a daily basis.

The survey found these Internet users spend 207 minutes a day on the web while TV viewers spend just 197 minutes.

With the four cities as a whole, TV remains a medium on which consumers spend most of their time each day, around 208 minutes, compared to 91 minutes for the Internet.

CMIT’s strong growth bolsters Vinalines-A.P Moller-Maesk cooperation

Global shipping giant A.P. Moller-Maersk Group and state-run Vietnam National Shipping Lines (Vinalines), the country's largest shipping company, have agreed to boost cooperation in the future as their joint venture port Cai Mep International Terminals Ltd. is posting strong growth.

At a recent meeting with Nguyen Canh Tinh, acting CEO of Vinalines in Denmark in late July, Anders Wurtzen, senior vice president of A.P. Moller-Maersk, said that Cai Mep International Terminals Ltd. (CMIT) is an important landmark in the cooperation between Vinalines and Maersk.

Especially, the call of Margrethe Maersk, an 18,000 TEU-Triple-E container ship, the world’s largest, at CMIT in early 2017 affirmed the long-term commitment of the group with Vietnam and Vinalines, Wurtzen added.

The two sides agreed to boost cooperation in providing Vinalines' domestic transportation services and increasing services and human resources quality.

A.P. Moller-Maersk is also interested in cooperation with Vinalines to invest in a number of projects, such as Lach Huyen Port, and Vinalines' initial public offering (IPO), which will be launched at the end of this year.

A.P. Moller-Maersk now has APM Terminals, one of the world's leading global port operators, and Maesk Line as members. 

As APM Terminals is a foreign partner of Vinalines in CMIT, the terminal is considered an important part in A.P. Moller-Maersk's global service chain.

After facing troubles in attracting cargo in the 2011-2015 period, CMIT is enjoying strong recovery in recent years thanks to a number of measures to increase the volume of containers from the northern and central regions to Cai Mep and launching many new services.

In 2016, CMIT reported container throughput of 1.2 million TEUs, meeting its designed capacity, and revenue of $22.64 million.

In the first half of 2017, the terminal made a revenue of $11.4 million, surpassing the target by 3%. 

It also handled 187 vessels with a container throughput of 620,834 TEUs, meeting 46.63% of this year's target of 1.3 million TEUs, and rising 7.66 % from the same period last year.

CGV takes over two Platinum cinemas in Hanoi

CGV officially took over from Platinum in operating two international-standard cinemas in Vingroup projects in Hanoi on July 14.

The cinemas are located at Vincom Mega Mall Royal City in Thanh Xuan district and Vincom Mega Mall Times City in Hai Ba Trung district.

On March 1, Vincom Retail (VCR) forced the closure of the Platinum Cineplex, owned by the Multivision Plus (MVP) entertainment conglomerate from Indonesia, at Vincom Long Bien Plaza, Vincom Mega Mall Times City, and Vincom Mega Mall Royal City.

During their partnership, VCR said, MVP repeatedly violated the terms of the contract, such as not paying rent. Only when VCR repeatedly submitted payment requests did MVP pay, but not in full.

This was sufficient to terminate the contract.

MVP said it would bring the matter to the attention of relevant ministries in Vietnam and expects intervention.

A representative from VCR, however, noted that the case is a disagreement between two business partners and should therefore be resolved on the basis of law and the trade and civil agreement between the parties.

Ms. Tran Mai Hoa, General Director of VCR, also told local media that the two sides failed to reach agreement on further cooperation.

CGV is a unit of the CJ Group and is one of the Top 5 largest cinema chains in the world and the largest cinema chain in Vietnam.

It has invested around $30 million in nine international standard cinemas in Hanoi to date.
After eleven years in Vietnam, it had invested some $200 million in the country through building 46 cinema complexes with 283 screens in 16 cities and provinces.

It plans to invest in 12-15 new cinemas each year, including four of five in remote areas. It also expects to invest about $15 million in building eight cinema complexes in Hanoi by the end of this year.

DHL eCommerce launches new delivery operations

DHL eCommerce, a division of the world’s leading logistics company, Deutsche Post DHL Group, launched nationwide domestic delivery operations in Vietnam on July 17 in Ho Chi Minh City.

The domestic delivery network will offer a high-quality delivery service throughout Vietnam and a range of services tailored for the booming e-commerce industry, helping small, medium, and large-sized e-tailers and marketplaces increase their share amid the rapidly growing e-commerce segment in the country.

“Vietnam’s e-commerce market represents huge and relatively untapped potential for local retailers, e-tailers, and marketplaces: in 2016, total e-commerce spending hit $1 billion despite barely over 50 per cent of the population being online,” said Mr. Charles Brewer, CEO of DHL eCommerce. “With e-commerce spending expected to grow at around 23 per cent per year between now and 2020, local e-tailers need scalable, high-quality logistics solutions with nationwide coverage more than ever before.”

DHL eCommerce Vietnam offers domestic delivery nationwide across the country, managed by hubs and depots strategically located throughout the country. Its fleet of vans and motorbikes, coupled with regular air and road connections between its hubs, will support next-day delivery in Ho Chi Minh City, Hanoi, and other primary markets.

“Our new domestic delivery service brings to Vietnam DHL’s extensive experience in designing comprehensive logistics networks, coupled with tailored e-commerce solutions to tackle some of the most pressing road blocks to e-commerce growth,” Mr. Brewer said. “With e-commerce, consumers are increasingly expecting greater choice, convenience, and control in their delivery experience and we aim to deliver a smile in the last mile by providing an amazing and customer-centric delivery solution.”

When using the network, local e-tailers can easily assign shipments requiring cash-on-delivery services through DHL eCommerce’s online portal, allowing for faster remittance and simpler management of shipment information. Consumers will also be able to open, check, and return goods at the point of receipt thanks to DHL’s Open Box Delivery service, better aligning the online shopping experience with their preferred purchasing habits.

“Only 15 per cent of Vietnam’s e-commerce shoppers paid online in 2016, making cash-on-delivery a must-have feature for e-commerce to succeed,” said Mr. Thomas Harris, Managing Director of DHL eCommerce Vietnam. “That, combined with concerns about the hassle of returns and refunds, has made growth an uphill battle for many local e-tailers. We recognize that having a fast and reliable delivery service won’t solve these issues alone, which is why we’ve tailored our nationwide network to seamlessly handle cash payments with next day cash remittance and returns to take the burden off local e-tailers so they can fully focus on growth and customer experience.”

In line with the recent DPDHL Group’s announcement to reduce all logistics-related emissions to zero by 2050, DHL eCommerce has begun deploying the use of electric motorbikes in its domestic delivery operations in Vietnam. The current fleet of vehicles includes a range of electric motorbikes and the company will be exploring plans to roll out more as part of its GoGreen commitment.

“Practical innovation lies at the core of our domestic delivery networks all around Southeast Asia, and Vietnam is no exception with its fleet of environmentally-friendly electric motorbikes already in action on the streets,” Mr. Harris said. “Coupled with advances in technology, we are optimistic that environmentally-friendly delivery methods such as electric vehicles will be the future of domestic B2C delivery and we’re pleased to be able to introduce this into Vietnam.” 

Insurance premiums exceed $2bn in 1H

Total premiums in Vietnam’s insurance sector during the first half of this year have been estimated at over VND47 trillion ($2.07 billion).

Addressing a review of tasks over the last six months, Ms. Pham Thu Phuong, Deputy Director of the Insurance Management and Supervision Department at the Ministry of Finance, noted that the sector maintained high and stable growth in the first half and that the financial capacity of insurers continues to improve.

Figures reveal that total premiums of VND47.17 trillion ($2.07 billion) were an increase of 20.77 per cent year-on-year and that payouts totaled VND13.33 trillion ($585.2 million).
Life insurance companies also successfully bid for more than VND15 trillion ($660 million) worth of government bonds with terms ranging from 15 to 30 years.

According to Ms. Phuong, mechanisms and policies in the insurance sector have been further improved, introduced in a timely manner, and been associated with the reform of administrative procedures, gradually increasing transparency, improving services, and creating the conditions for the sector to develop healthily, safely, and effectively.

Insurance management and supervision continued to be strengthened, incorporating remote monitoring. Authorities also guide and support insurance companies, to ensure compliance with the law and create a more transparent and healthy business environment.

Insurance companies have also invested in developing new products, expanding networks, and improving service quality to bolster their competitive strength and boost sales.

Quang Ninh to prepare Van Don Economic Zone master plan

Prime Minister Nguyen Xuan Phuc has permitted northern Quang Ninh province to develop a master plan for socioeconomic development and re-plan the Van Don Economic Zone project towards it being a special administrative-economic zone.

He asked the province to use local budget and other legal funding sources to implement the project.

The PM also agreed in principle that the Provincial People’s Committee select and assign foreign consultants to prepare the master plan and agreed with the Committee implementing a negotiation mechanism when considering the contract value.

Quang Ninh leaders earlier petitioned the PM to report to the Politburo shortly on setting up the Van Don special administrative-economic zone.

They also suggested the government quickly issue a decree on the casino business that would allow Vietnamese citizens to gamble.

Van Don has a politically and economically important position as it lies on the strategic transit route from East Asia to Southeast Asia and from ASEAN to China, in the Vietnam-China “Two Corridors, One Belt” cooperation area, in the Nanning-Singapore economic corridor, and in the extended Tonkin Gulf inter-regional cooperation area.

The zone is part of a government-approved plan to build three such zones in the country, with the others being Van Phong in the central province of Khanh Hoa and Phu Quoc in the Mekong Delta’s Kien Giang province.

The zones are expected to spearhead the country’s growth and tap local advantages to drive growth in the area. They will pilot key new economic and administrative policies before they are applied nationwide in order to develop the maritime economy.

New international flights take to skies

New international routes have opened up to and from Vietnam to meet increasing demand from both business people and travelers.

The Thanh Hoa-Bangkok route connecting the capital of the northern province of the same name with Thailand’s capital was introduced a few days ago as a charter flight by local tour operator, Vietravel. It uses Vietjet Air aircraft with 180 seats, and four flights are expected from July 28 to August 30. Round-trip tickets are VND4.55 million ($200). Viettravel also offers a five-day tour from Thanh Hoa - Bangkok - Pattaya for VND7.45 million ($330).

The first international flights are also being conducted to and from Dong Hoi in central Quang Binh province and Chiang Mai, Thailand, from August 11. Jetstar will conduct the flights on Monday and Friday. One-way tickets, including taxes, start from $100.

Jetstar has also opened ticket sales on its Da Nang and Hanoi - Osaka route, operating from September 1 and 2 with a frequency of four flights a week from both cities. One-way tickets are VND1.5 million ($66), excluding taxes and charges.

Vietjet is also conducting new Hanoi - Yangon flights, from August 31. One-way tickets are currently being sold for VND105,000 ($4.6), excluding taxes and fees.

AirAsia, meanwhile, will begin flights from the beach city of Nha Trang to the Malaysian capital of Kuala Lumpur from September 14. This is the first flight by Asia’s largest low-cost airline to and from Nha Trang. One-way tickets are VND790,000 ($35), excluding taxes and fees.

Previously, the only international routes to and from Can Tho were charter flights, bringing passengers to Bangkok from June 27 and jointly conducted by Vietjet Air and WorldTrans, the sea and air freight arm of Viettravel. By the end of July it was conducting eight round-trip flights, with tickets costing VND4.8 million ($211). A tour of five days and four nights from Can Tho to Thailand is available for VND6.99 million ($307).
Plans are also in place to open new direct flights to and from Can Tho and South Korea, Japan, and Singapore, as well as Hai Phong, Vinh (Nghe An), Cam Ranh (Khanh Hoa), Da Lat (Lam Dong) and Hue in Vietnam.

Expert urges Vietnam to invest in renewable energy

Vietnam must develop small and medium hydropower plants as well as make use of renewable energy to avoid energy shortages, according to Tran Viet Ngai, Chairman of the Vietnam Energy Association.

There are warnings about electricity shortages in the future and concerns over the difficulties in developing coal power plants.

Ngai also warned that Vietnam must find a way to close the gap between energy supply and demand in the next three years. It is predicted that Vietnam will lack 100 billion kWh in 2020 and 300 billion kWh in 2030. Vietnam must calculate carefully to generate more electricity domestically, or it must also find affordable sellers overseas.

"I think we must focus on small and medium-sized hydropower plants, and the renewable energy sources like solar, wind and biomass power," he said.

All hydropower plants in Vietnam contribute 80 billion kWh to the national grid. When hydropower plants were being built en-mass during the 2010-2014 period, large amounts of forested land were destroyed. In many cases, the investors of small and medium-sized hydropower plants had little knowledge about what they were doing so their field survey and documents were simple and didn't meet requirements.

The National Assembly had to scrap 400 hydropower plant projects after it was reported that a number of local departments of agriculture and rural development and departments of industry and trade didn't follow proper discharging protocols.

"However, we must look back on some projects that could still be invested in for rural and mountainous areas. Stricter management must be applied to protect the forest and ensure the quality of the project," Ngai said.

According to Ngai, the total contribution to the national grid will increase by 3,000MW if Vietnam builds 300 more small and medium hydropower plants. He also suggested focusing investment on three types of renewable energy including solar, wind and biomass energy.

"Vietnam has 3,360km of coastline, the longest in South East Asia with sun and wind all year round. We also build solar and wind farms in the vast deltas, midlands and mountainous areas," he said.

Other advantages are listed such as long sunny hours in a tropical country and cheaper turbine cost.

He said, "The solar irradiance is 5 kWh per square metre per day and we have about 2,500 to 3,000 sunny hours a year. The solar panels can be installed on the sea, house roof, window, delta, mountainous areas in summer. We can produce thousands of MW from sunlight."

Wind farms can also be built anywhere according to Nghia. The problem is how to connect them to the national grid and ensure a stable system. In addition, Vietnam should also take advantage of the billions of tonnes of discharged waste.

However, there is no effective policy to encourage the development of renewable energy.

"The government must quickly make a plan to develop renewable energy. They should gather consultants and top experts to help with the projects," he said. "Secondly, the government must develop one or two industrial zones that specialise in making equipment for the plants. Supporting policies for investors are needed such as tax exemption for the first years."

Ngai said the government must carry out detail research on sunlight and the amount of discharged waste from each region and province to make the best decision.

Can Tho makes thorough preparations for APEC 2017

The Mekong Delta city of Can Tho has set forth plans for cooperation with ministries and agencies to make the High-Level Policy Dialogue on Food Security and Sustainable Agriculture in the locality from August 21-25 a success, according to a municipal official. 

Dao Anh Dung, Vice Chairman of the Can Tho city People’s Committee, said at a working session with the APEC 2017 National Secretariat on July 18 that Can Tho regards the event as an opportunity to promote trade and local tourism. 

There will be 15 meetings, seminars and conferences within the five days, of which the ministerial-level meeting will bring together leaders of global economies and over 500 other delegates, he said. 

Dung noted that the municipal Department of Agriculture and Rural Development has been assigned to coordinate with relevant agencies in organising events in localities with attention paid to communications work, security, food hygiene and safety, trade and tourism promotion and technological applications in the farming sector. 

Through fairs, exhibitions and tours, Can Tho is expected to motivate participating foreign businesses to engage in cooperation with those in the Mekong Delta, the official said. 

Speaking at the working session, Deputy Foreign Minister Bui Thanh Son, head of the APEC 2017 National Secretariat, praised Can Tho for its thorough preparations for the dialogue. 

He said enhancing food security and sustainable agriculture, and climate change combat is one of the four cooperation priorities of APEC 2017’s agenda, along with promoting sustainable, innovative and inclusive growth, strengthening regional economic connectivity intensively and extensively and improving competitiveness and innovation of small- and medium-sized enterprises (SMEs). 

This is also Vietnam’s initiative which has received high consensus of other APEC members, he said, adding that the dialogue is expected to bring pragmatic interests to Can Tho, which has been seen as a locomotive of the Mekong Delta – a key region in agricultural development and climate change response, Son said. 

He urged Can Tho to place importance to the communications work to raise awareness of the business circle about the dialogue, explaining that businesses are the main factor contributing to the success of the event.

VIB’s total assets surge 10% in H1

Vietnam International Bank (VIB)’s total assets witnessed a year-on-year increase of 10 per cent to VNĐ115 trillion (over US$5 billion) in the first half of this year.

During the reviewed period, VIB’s credit balance reached VNĐ75.68 trillion, up 15.7 per cent year-on-year, including lending balance of VNĐ69.2 trillion, after its unaudited business results were released on Tuesday.

Most of the credit growth was contributed by personal loans, which went up by more than 30 per cent compared with the end of 2016, clearly demonstrating the bank’s direction to focus on the retail segment, VIB said, adding that deposits also saw a yearly growth of 15 per cent.

From January to June, the bank’s pre-tax profit topped VNĐ380 billion, surging 25 per cent compared with the same period in 2016 or accounting for 51 per cent of its yearly plan.

According to the latest data, VIB’s revenue growth could be seen in most key items in the period, with 23 per cent increase seen in net interest income and 54 per cent growth recorded in commission and fee income.

“The well-controlled quality of loan portfolio and rapidly handled debts have helped slash the provision cost by 29 per cent compared with the same period of 2016, contributing to improving the bank’s profitability,” the bank said.

In the six-month period, VIB’s non-performing loan ratio was at 2.59 per cent, even as it continued repurchasing bonds from the Việt Nam Asset Management Company to deal with debt collection.

Besides this, VIB’s financial indicators were all good and well complied with SBV’s safety limits. Notably, the loan-to-deposit ratio and the short-term deposit to long and medium term loan ratio were 69 per cent and 46 per cent, respectively.

Earlier, in May, Moody’s Investors Service, one of the world’s leading credit ratings agencies, upgraded the credit rating outlook of VIB’s local currency deposits and issuer ratings to “positive” from its previous level of "stable". The bank also won the “Best customer service bank Việt Nam 2017” award from the Global Banking & Finance Review and the “Most Innovative Banking Brand Việt Nam” award from the Global Brands Magazine.

Hòa Phát reached $925 million of revenue in H1

Hòa Phát Group recorded a revenue of over VNĐ21 trillion (US$925 million) and an after-tax profit of VNĐ3.47 trillion in the first half of 2017, a year-on-year increase of 36 per cent and 14 per cent, respectively.

Construction steel and steel pipes continue to be the main contributors to the positive results of Hòa Phát in the six-month review period.

Hòa Phát in H1 produced more than one million tonnes of construction steel, increasing 33 per cent compared to the same period last year and meeting more than half of its annual production plan.The group exported nearly 90,000 tonnes of construction steel and wire drawing steel to the US, Australia, Malaysia, Singapore, Cambodia, Laos and the Philippines.

The sales volume of steel pipe in H1 reached 273,000 tonnes, raising the firm’s market share to 26.57 per cent.

The group is improving production capacity in all factories nationwide to reach an expected capacity of one million tonnes of steel pipe by 2020.

In addition to the revenue from construction steel, other manufacturing industries such as furniture, refrigeration and spare parts continue to maintain the steady growth.

Especially, the agricultural sector--including animal feeds, pigs and high-tech Australian cow raising techniques--also contributed about VNĐ1 trillion to the group’s revenue in the first six months of 2017.

In terms of Hòa Phát Dung Quất iron and steel production complex, up to now, Hòa Phát Dung Quất Steel JSC has completed the negotiation of equipment contract with the supply partners. Danieli Group from Italy assured that the first steel rolling line of the project will be completed and tested in June 2018, and the second steel rolling line is expected to be completed six months later.

When the complex comes into full operation, Hòa Phát expects to supply two million tonnes of high quality construction steel annually to the market.

Agribank to withdraw capital from Vinaconex Transportation JSC

The Commercial Joint Stock Bank for Agriculture and Rural Development of Việt Nam, Agribank, will divest its entire capital at the Vinaconex Transportation Joint Stock Company, Vinaconex Trans., JSC.

Agribank will auction 1 million shares of Vinaconex Trans worth VNĐ10 billion (US$439,000) at the Hà Nội Stock Exchange on July 25.

The shares are equivalent to 9.08 per cent of shares circulating in Vinaconex Trans and will be sold at VNĐ2,940 per share — 3.4 times lower than the par value of VNĐ10,000 per share.

As announced on Agribank’s website, the information on investors participating in the auction and the amount of shares they register to buy will be disclosed on Thursday this week.

Vinaconex Trans., JSC is a subsidiary of Việt Nam Construction and Import-Export Corporation, Vinaconex. It was established in 2008 with the function of providing freight and material transportation services to member units of Vinaconex.

According to the 2013 financial report of Vinaconex Trans, by the end of 2013, total assets of the company were some VNĐ186.6 billion, down 16.2 per cent compared to 2012. The company reported an after-tax loss of over VNĐ51 billion in 2013.

It has stopped all business activities since November 2014 due to unsatisfactory business results.

HCMC to build apartments with price at VNĐ300m

Authorities of HCM City plan to build apartments with prices at under VNĐ1 billion (US$43,898) per unit for employees located in the city.

The city will study and work with investors to reduce costs and diversify products to build affordable apartments at prices from VNĐ300 million to VNĐ400 million, VNĐ700 million and under VNĐ1 billion per unit to meet demand of the low-income people, Trần Trọng Tuấn, director of the HCM City Construction Department, said.

This plan was proposed after the city had successfully constructed 40,000 apartments with price at VNĐ100 million per unit, similar to the southern province of Bình Dương that has built such apartments for workers in the province, he said.

At present, one investor will develop a social housing project of 1,000 units in District 12, while another investor is planning to invest in building social houses on land under the land fund managed by the State.

“The construction department has discussed with these two investors to reduce the selling price to VNĐ300-400 million per unit. Only projects that are developed on land under State management can offer houses at VNĐ300 million per unit. There will be no cheap apartments if companies themselves conduct site clearance and compensation for site clearance," Tuấn said.

Phan Trường Sơn, head of the department’s Housing Development and Real Estate Market Division, said the city currently had 57 social housing projects with total area of 165ha.

The department has submitted to the city People’s Committee a social housing development plan until 2020, including solutions to diversify property products, such as for people living along canals and rivers who are not eligible to buy commercial houses. 

Fisheries sector urged to clear barriers to tra fish

The fisheries sector needs to clear barriers for tra fish in the US, the European Union (EU) and China, said Deputy Minister of Agriculture and Rural Development Vu Van Tam. 

Tam suggested the sector rearrange production to meet US standards as the US remains a major importer. For the EU, it should get ready for the upcoming bilateral free trade agreement and to tackle barriers, including dealing with inaccurate media reports about tra fish. 

Regarding the Chinese market, further attention should be paid to product quality management and ensuring fairness for businesses involved in official and cross-border trade. 

He also underscored the need to continue marketing products in Japan, Brazil, ASEAN and several other markets. 

At home, he proposed developing new products that suit domestic consumers’ taste, ensuring supply of high-quality varieties and making it easier for enterprises to work with scientists and research institutes to churn out quality tra fish for breeding. 

Nguyen Ngoc Oai, Deputy Director General of the Ministry of Agriculture and Rural Development’s Directorate of Fisheries (DOF), said negotiations against the US’s Farm Bill will be a priority between now and the year’s end. 

DOF statistics showed that total tra fish exports surpassed 500 million USD in the first half of this year, up 2.7 percent year-on-year. 

Total tra fish farming area in the Mekong Delta is 3,100ha with total output of more than 500,000 tonnes, up 1.3 percent and 2.2 percent, respectively.

Dutch firms plan to build on their FDI

Vietnam has become a magnet to big Dutch firms and investors who are interested in many sectors in the country, especially through engaging in financial investment and state-owned enterprise equitisation.

During his July 9-11 visit to the Netherlands, Vietnam’s Prime Minister Nguyen Xuan Phuc met with many Dutch firms and investors who said the country is one of the most dynamic and fast-developing economies in Asia, with great potential for financial investment.

They expressed their wish to participate in Vietnam’s sectors of state-owned enterprise (SOE) equitisation, energy, climate change adaptation, and micro-finance.

The investors and firms include globally-famous investment equity management funds like Actiam N.V, Shell Pension, Orbit Asset Management, Pacific Spring, and Obam, as well as firms like NACO, Damen, Puma Energy, Vamed, and hundreds of others.

Arnold Bon, representative from Orbit Asset Management, said Orbit has invested in Vietnam’s financial market via VinaCapital, and will continue expanding its operations in Vietnam via co-operation with partnering organisations, individuals, and enterprises.

Tony Chan, co-founder of Pacific Spring, which specialises in supporting Asian investment funds to approach European partners, said that Pacific Spring wants to invest in Vietnam in the time to come – and like other firms, it hopes to receive support from Vietnam’s government.

Obam’s representative Erwin van Zuidam said that Obam is a long-term investor seeking well-performing firms with a sustainable business model in Vietnam, which it feels is an emerging market.

Actiam N.V’s general director Hans van Houwelingen and Shell Pension Fund’s investment consultant Jeroen Kakebeeke said their funds stand ready to pour a great deal of capital into the Vietnamese market, whose consumption and production are strongly rising.

Actiam N.V has $54.6 billion worth of assets and provides services about investment portfolio management and consultancy for individuals, organisations, and firms globally.

Meanwhile, the Shell Pension Fund, managed by Shell Group, has an asset volume of $35 billion,  $27 billion of which comes from other funds from the UK, the Netherlands, and the US.

According to Dutch Deputy Prime Minister Lodewijck Asscher, Vietnam is seen by Dutch firms and investors as a “huge consumption market” with its population of 93 million people, fast-developing economy, and stable political climate.

Many other Dutch firms are also seeking to invest in projects in Vietnam.

Damen, a Netherlands-based global leader in shipbuilding, is seeking to complete its acquisition of a 70 per cent stake in Song Cam Shipbuilding JSC, the most profitable shipyard in Vietnam. The stake sale is still under governmental consideration.

Phuc asked Damen to expand its investment in Vietnam, and to soon decide on its investment in some shipbuilding firms in the country.

Puma Energy, whose asphalt factories have been operating in Vietnam for the past 20 years, already considers Vietnam a strategic market in Southeast Asia. It recently decided to participate in the equitisation of some Vietnamese SOEs, and expressed its desire to engage in that of Vietnam’s PV Oil. Phuc also suggested the firm co-operate with oil refineries in Vietnam.

NACO, one of the world’s leading airport consultancies, also wants to seek business opportunities in Vietnam, where a number of large airports are being developed.

Currently NACO is co-operating with Vietnam Aviation Agency by providing consulting on the upgrade and construction of new airports in the country. NACO particularly wishes to co-operate with the government to deploy an airport-based city model in Vietnam.

In calling upon Dutch firms to invest in Vietnam, the PM stressed, “Vietnam is creating the best conditions for all foreign private investment funds.”

He said that now is the best time for the Dutch to invest in Vietnam, where the stock and financial markets are flourishing. Many SOEs have and will be radically equitised, including big groups operating in the sectors of transport, airports, expressways, seaports, electricity, telecommunications, agriculture, and tourism. Vietnam has committed to removing barriers in many sectors, especially telecommunications, finance, and banking, whose foreign ownership limits have  been and will continue to be lifted. 

During Phuc’s visit to the Netherlands, 11 co-operation deals worth about $700 million were inked by enterprises from both nations. For example, Vinalines and Holland’s STC Group clinched a deal on training co-operation, while Xuan Thanh Group and BS Bull signed a co-operative agreement on climate change consultancy, agriculture, and renewable energy development.

As of June 20, 2017, the Dutch had 292 valid investment projects in Vietnam, registered at $7.97 billion, according to Vietnam’s Ministry of Planning and Investment.

Government-level co-operation deals inked:

- Memorandum of understanding (MoU) between the two governments and the World Bank Group on co-operation in food safety management in Vietnam.

- Letter of intent between the two governments on co-operation in facilitating and implementing large-scale sustainable projects for the Mekong Delta.

- MoU between Vietnam’s Ministry of Planning and Investment and the Netherlands’ Ministry of Foreign Trade and Development Cooperation on co-operation within the context of the “Development Related Infrastructure Investment Vehicle” programme.

- Agreement between the Vietnam Coast Guard and the Netherlands’ Damen Shipyards Gorinchem on building six multipurpose offshore patrol vessels for the Vietnam Coast Guard.

Vietnam seeks further Japanese support for important transport projects

Vietnam is seeking the Japanese government's support for important transport projects, including the North-South Expressway, North-South High-Speed Railway, metro lines, and Long Thanh International Airport.

Minister of Transport Truong Quang Nghia made the proposal to Hiroshi Narahira, Deputy Minister of Land, Infrastructure, Transport and Tourism (MLIT) at a meeting on July 13.

Hiroshi Narahira said that Japan is interested in sharing experience and joining transport development in Vietnam, thus strengthening bilateral ties.

At the 5th vice-ministerial level meeting in the transport sector between the two ministries held on the same day, the two sides reviewed their cooperation programmes in infrastructure investment, human resources training, railway, navigation, and aviation.

Specific projects in the cooperation programmes included the technical support for prefeasibility study of the North-South High-Speed Railway project, support for investment study for metro lines 1, 2 in Hanoi and Metro Line 2 in Ho Chi Minh City, Terminal 2 of Noi Bai International Airport, Nhat Tan Bridge and Nhat Tan-Noi Bai Road, as well as many key seaport infrastructure projects, such as Cai Mep-Thi Vai, and Lach Huyen Port.

"In the next two years, we expect that Japan will continue supporting railway projects, such as the feasibility study of the North-South High-Speed Railway project, as well as those in aviation, navigation, and logistics," said Deputy Transport Minister Nguyen Ngoc Dong.

Hiroshi Narahira, in response, said that Japan is willing to share experience and cooperate with Vietnam in transport development projects.

"Japanese businesses are keen on the North-South High-Speed Railway project and Long Thanh International Airport," he noted.

At the meeting, the two sides also discussed persistent problems in some transport projects as well as the public-private partnership (PPP) investment model, especially the policies to ensure investors' legitimate rights.

IDM Vietnam launches digital marketing training program

IDM Edu Vietnam has launched a digital marketing training program to provide high-quality human resources for enterprises.

The program is implemented under the mandate of the Digital Marketing Institute, a prestigious educational institution in digital marketing and social selling education with over 20,000 professionals worldwide.

Those interested can register for the course from July 12 at IDM Edu Vietnam where learners will be taught professional digital marketing, online marketing strategy-planning, digital marketing on social media, and professional sales through online channels.

Vu Van Hien, academic director of IDM Edu Vietnam, said the center offers flexible and practical training methods, helping learners gain knowledge and skills to get easy access to big companies.

According to IDM Edu Vietnam, the training program has been accredited by global experts. After completing the course, learners are able to take an international certification exam through Pearson VUE Test Center, a global renowned organization in computer-based exams.

The certification has been internationally recognized at more than 80 countries including the U.S., the UK, France, Germany, Australia and Canada.

Can Tho finds ways to boost airport efficiency

The Mekong Delta is a major tourist attraction in Vietnam but the Can Tho International Airport is struggling with poor business performance, according to a meeting in Can Tho City on Wednesday.

At the meeting, Le Tien Dung, deputy director of the Department of Transport of Can Tho City, said over 28.1 million tourists came to the Mekong Delta last year, including over 2.47 million from abroad, and that the delta's tourism sector reported total revenue of VND11.3 trillion (US$497.2 million).

“Can Tho alone saw 5.3 million tourist arrivals last year, including over 258,000 from abroad, and obtained total tourism revenue of over VND1.8 trillion, up 16.1% year-on-year,” Dung added.

However, the business prospect of Can Tho International Airport is somber. “Many air services to and from the airport have been closed, such as Can Tho-Con Dao and Can Tho-Da Lat,” said Le Thanh Phong, vice chairman of the Can Tho City Tourism Association.

Chartered flights between the city and Bangkok have been resumed but it will be hard to sustain it, according to Phong.

Le Phu Dung, director of the southwestern branch of Saigontourist Travel Service Company, said the company has tried its best to lure tourists for Can Tho-Hanoi and Can Tho-Danang air routes but it has been helpless.

According to Dung, these routes had low flight frequency and frequent delays, while travel firms have to prepare tour programs several months or even one year in advance.

Tour sales in Can Tho City depend largely on seasons. Tourist arrivals to the city in summer or on holidays may be six or seven times higher than on normal days.

To attract more visitors to Can Tho, Nguyen Cong Hoan, representative of the Airports Corporation of Vietnam, said the city and the Mekong Delta need to have specific tourism products. Besides, stronger economic development will help increase  visitor arrivals as more businessmen will fly to the city for business.

Vo Huy Cuong, deputy head of the Civil Aviation Authority of Vietnam, said suggestions and ideas at the meeting will help reevaluate the potential and capacity of Can Tho International Airport. The Ministry of Transport will work with aviation firms and others to maintain existing flights and open more routes to the airport.

EU to inspect Vietnam seafood exporters again

A European Union (EU) team will come back to Vietnam in November to inspect seafood exporters as some issues remained unsolved in the 10-day check in June.

According to the National Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD), a delegation of the Directorate-General for Health and Food Safety (DG SANTE) and the European Commission (EC) visited Vietnam between June 20 and 29 to check the local seafood safety management system and the quality of seafood exported to the EU.

The EU delegation said the food safety control system of Vietnam could meet EU requirements, especially procedures for inspection and supervision. However, the requirements for laboratories and investigators have not been fulfilled.

The delegation inspected all steps involved in seafood production from fishing boats, fishing ports and wholesale markets to cold storage facilities and processing systems of enterprises but no violations were detected.

For years the EU has been one of the three biggest importers of Vietnamese seafood, with over US$1 billion worth of seafood imported from Vietnam. However, Vietnam has seen its seafood shipments to the EU slipping significantly. It was not among Vietnam's top four seafood importers in 2016. This year, there are signs of recovery.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp exports to the EU totaled US$119 million in the first quarter of this year, up nearly 6.5% over the same period last year. The EU was Vietnam's second largest shrimp importer, making up 19% of the total.

Exports of other seafood products such as squid and octopus also grew a staggering 80% year-on-year in the first three months. The EU now ranks third among squid and octopus importers of Vietnam, accounting for 19% of total exports, up from 14% in the first quarter of 2016.

Tuna exports to the EU picked up sharply. According to VASEP, the EU was the second leading importing markets for Vietnamese tuna with an increase of 14% in import value. Vietnam has shipped tunas to 79 markets worldwide.

Conflicting numbers of private enterprises

The number of private enterprises in Vietnam remains a big question mark as there exists different data at different agencies.

The General Department of Taxation under the Finance Ministry said more than 596,700 companies had been active as of June 30, a 5.1% rise over late last year.

Meanwhile, a recent report of the General Statistics Office shows the nation had had around 442,500 operational enterprises by late 2015, an annual increase of 17.6% in the 2000-2015 period.

The Business Registration Management Agency under the Ministry of Planning and Investment said the number of companies registered last year was 110,100, up 16.2% over the previous year. According to the agency, Vietnam had 61,300 startups in the first half of this year, in addition to about 15,400 companies resuming operation.

A report of the Enterprise Development Agency under the Ministry of Planning and Investment indicates 97% of private enterprises are small and micro, and 1.6% medium. However, in terms manpower and capital, 97.7% and 94.8% of private businesses are small and medium, respectively.

A recent study of the Central Party Committee’s Economic Commission reveals 96% of nearly 536,000 companies in the private sector are active under the Enterprise Law.

The report says the private sector between 2000 and 2014 saw a marked decrease in manpower, from 28.3 to 18.4 employees, and a dramatic increase in capital, from VND3 billion to VND25 billion. Nonetheless, their average returns on investment and equity remained modest, at 1.2% and 4% respectively in 2014.

Vietfood Beverage expo to run in August
     
The 21st VietFood, Beverage and Professional Packing Machines (VietFood & Beverage – ProPack) international exhibition will take place at the Sai Gon Exhibition and Convention Centre in HCM City from August 9 to 12.

Vietnamese firms account for about half of the 500 participants this year, and their key products include tea, coffee, dried fruit and beer.

The organising board said some veteran foreign participants, including those from Taiwan, Thailand, Poland and South Korea, wish to expand their display space this year.

Poland will treat visitors to clean farming solutions and fresh fruit and dairy products. The South Korea will occupy 70 stalls at the fair by enterprises producing agricultural products, financial and insurance services.

The board named several newcomers from abroad, including the Czech Republic, the United Arab Emirates, Brazil and France.

Workshops will be held on the sidelines of the exhibition, with discussions covering food & beverage retail in Viet Nam and management skills for businesses in the sector, among other topics.