Vietnam - an attractive retail market: research

Research conducted by Germany's Statista Market Research Company showed that the scale of Vietnam's retail market could reach 100 billion USD in 2016.

With a young population and increasing number of people visiting commercial centres, the country's retail industry holds huge potential.

Big retailers from Japan, Thailand, France and Germany have poured into the retail market, creating fierce competition.

The Economist Intelligence Unit also announced its report on the prospects of various sectors in 2016.

It said the retail sector's revenue could see stable growth of 2.7 percent this year.

It added that the liberalisation of the retail industry would help Vietnam become an extremely attractive market, especially in e-commerce.

FLC Quy Nhon golf course opens for play

FLC Group’s 18 -hole golf course was officially opened in the south-central province of Binh Dinh on January 30, after more than five months of construction.

The course is part of the Nhon Ly resort and entertainment complex project in Quy Nhon city’s Nhon Ly Commune.

Covering an area of 300 ha, the project has total investment capital of 3.5 trillion VND (159.1 million USD).

The remaining parts of the project will be completed and put into operation in the second quarter of 2016.

Asia’s most modern course is expected to attract thousands of domestic and international golfers to compete.

It was designed by Nicklaus Design, the world’s premier golf course design firm, which has over 375 courses open for play in 36 countries, with another 45 under development.

Hanoi eyes 3.76 million international visitors in 2016

The capital city of Hanoi hopes to welcome nearly 21.2 million tourists in 2016, including 3.765 million international visitors, according to the municipal Department of Tourism.

The city targets to rake in more than 60 trillion VND (2.7 billion USD) from tourism services this year, rising 8.11 percent against 2015.

In a bid to realise the goal, the tourism sector will focus on raising public awareness of tourism development, bolstering domestic and international cooperation to lure more tourists while enhancing tourism promotion activities.

In addition to providing support and addressing difficulties for enterprises, organisations and individuals joining in tourism development, the sector will invest more in human resource training.

Last year, the city received nearly 3.4 million foreign holiday-makers and 16.4 million domestic vacationers. Total tourism revenues were estimated at over 55.5 trillion VND (2.5 billion USD).

Hanoi was listed by the Lonely Planet- the world’s popular travel guide book publisher- in the Top 10 best-value destinations for 2016. The city was also named among top 5 best cities for low-budget vacations in 2015 by DrPrem, a renowned travel and tourism website.

Garment firms prepare for tough battle at home as trade deals loom

Vietnamese textile and garment companies face a huge challenge with the market set to be flooded with imports following the country's accession to the ASEAN Economic Community (AEC) and Trans-Pacific Partnership (TPP) treaty.

"I realise that customers will support domestic goods, but the most important factor to retain Vietnamese clients is to assure quality," Nguyen Thi Dien, chairwoman and executive director of the An Phuoc Shoes Sewing and Embroidering Company, has been quoted as saying on the government website.

Since 1995 Viet Tien Garment Joint Stock Corporation has set up a distribution chain with 1,390 shops and agents around Viet Nam. Besides the famous Viet Tien brand name, the corporation also owns various fashion brands for both adults and children.

With over 200 shops, Blue Exchange has a big market share of garments for young people.

"In recent years demand for garment products has increased by 10 – 15 per cent annually," Hong Ve Dung, deputy general director of the Viet Nam Garment and Textile Corporation, said.

Dien said since competition with garment products from other ASEAN countries would be unavoidable, local companies should improve their quality and expand models to strengthen their competitiveness.

Despite the fact that the market is set to become more competitive, An Phuoc has kept its growth target of 15 -17 per cent.

This year it plans to open 10 more shops to add to its 105 existing ones.

"Promoting new design, strengthening brands and expanding the distribution system are the best ways to cope with the effects of the free trade agreements."

"ASEAN garment products will flood the Vietnamese market and directly compete with domestic products," Hong Ve Dung said.

"Local companies hope for lower interest rates to cut their expenditure and improve their competitiveness."

VN targets high growth to 2020

Viet Nam aims to achieve annual average economic growth of 6.5 per cent to 7 per cent through 2020, striving to turn itself into an advanced industrial country soon, according to the Resolution of the 12th National Party's Congress.

The Resolution, approved and made public at the end of the nine-day long National Congress of the Communist Party of Viet Nam (CPV), mapped out several targets in terms of socioeconomic development as well as environmental protection that will set the specific working checklist for the new Party and Government leaders in the next five years.

According to the Resolution, GDP per capita was expected to rise to $3,500 by 2020 from $2,019 in 2015.

The Party also set the task to keep the unemployment rate in urban areas below 4 per cent while 80 per cent of the population will be covered by health insurance – an indication that the ultimate target of making health insurance universal is unlikely to be achieved soon.

About 95 per cent of urban residents and 90 per cent of those living in the countryside will have access to clean and hygienic water, according to the Resolution.

Apart from those specific target figures, the Resolution also listed six key missions to be carried out in the upcoming time, one of which is a refinement of the Party in order to stop the regression of the political ideology, morals and lifestyle of the 4.5 million Party members.

Further works will be done to build a lean and efficient political system as well as to bolster the fight against corruption, state budget waste and bureaucracy.

Preserving the country's territorial integrity was also one of the key missions for the political system to uphold especially in the context of Viet Nam being one of the main parties involved in the simmering East Sea dispute.

Though firmly safeguarding the homeland, according to the Resolution, Viet Nam at the same time strives to maintain an environment of peace and stability favourable to development as well as to further deepen relationships with other countries for a fruitful international integration.

Meanwhile, labour productivity, the economy's competitiveness and economic growth quality were three issues that received a call for stronger measures to accelerate the country's economy.

The productivity of Vietnamese workers were known to rest in the bottom half of the ASEAN bloc's, raising concerns among experts of the country's competitiveness especially as Viet Nam is a member of the ASEAN Economic Community (AEC) starting this year and has also signed several international trade agreements including the historic Trans-Pacific Partnership (TPP).

HCMC, haven for Tet foods

A lot of speciality foods are available in HCM City ahead of Tet (the Lunar New Year).

They are sold everywhere from social networks and shopping portals to shops and supermarkets, and include hundreds of items from northern, central and southern cuisines and even speciality foods from Cambodia and Laos.

At shops specialising in selling northern speciality foods on Dien Bien Phu Street and Van Thanh Market in Binh Thanh District, Nguyen Dinh Chieu and Hai Ba Trung in District 1, customers can find scores of them.

Among popular fresh foods are kohlrabi, cabbage, garland chrysanthemum, green onion, lactuca sativa, carrot, and various other vegetables.

The northern vegetables have more flavour and are sweeter and tenderer than those from Da Lat.

Among dried foods, vermicelli made of arrowroot startch (from So village in Ha Noi), Chu noodle, pig tongue shaped dried bamboo shoot (Tuyen Quang), vau dried bamboo shoot (Bac Giang), Tam Xoan rice (Nam Dinh), thin-top mushroom (Ha Noi) are the most popular northern specialities.

Processed foods include pig's head paste, thit dong (braised frozen pork), bamboo shoot pickle, banh chung (square glutinous rice cake), sweet short cake, and Vu Dai traditional braised fish.

The northern specialities are more expensive than those from Da Lat due to the high transport costs. For instance, kohlrabi or cabbage is sold at VND35,000-45,000 a kilogramme compared to VND15,000-20,000 for their Da Lat counterparts.

And they could increase by another 20-30 per cent closer to Tet, shop owners said.

Traditional cakes from the central region such as snow-flaked and mung bean cakes, Quang Ngai dried beef, "one-sunlight-dried" beef, Tra River goby and Bau Da rice alcohol are also available at many markets in the city.

Specialities from the south-central region are Ngoc Viet rice, fish sauce-preserved pork and "one-sunlight-dried" cuttlefish.

Supermarkets, traditional markets and shopping portals are also selling many kinds of southern specialities like Soc Trang Chinese-style fresh sausage, Hoa Loc mango, Nam Roi grapefruit, Lo Ren star apple, Can Tho orange, Sen Hong Dong Thap alcohol, Lai Vung mandarin, Tra Vinh banh tet (cylinder-shaped glutinous rice cake filled with green bean paste and pork), dried snakehead fish, Ca Mau crab and others.

Many items from neighbouring countries are also becoming increasingly popular in the city.

Some shopping portals and shops in District 10 have been selling large quantities of items like Tonle Sap dried snakehead fish, dried snake and frog, Siem Reap sausage, and others.

Their prices range from VND280,000-700,000, 20-30 per cent higher than their Vietnamese counterparts.

With demand booming ahead of Tet, HCM City has become a magnet for foods from various parts of the country.

Customs sector to install better IT

The goal of the General Department of Vietnam Customs is to boost information and technology in all customs state management activities in order to facilitate people and enterprises.

Nguyen Manh Tung, director of the Customs Department of IT and Statistics, told the Vietnam News Agency's e-newspaper VietnamPlus about the sector's solutions to implement Resolution 36a/ NQ-CP on e-government in the upcoming time.

Particularly, the customs will upgrade and develop online public services on its e-portal this year to ensure that online public services are served at least at level 3, following the roadmap of the Ministry of Finance.

This is the level that allows applicants to fill in and submit the forms online. By next year, Tung said the department would provide online public services at level 4 for the key administrative procedure under the fields of customs declaration and goods clearance, means of sea transport declaration, aviation, and tax payment, in addition to fees and levies, and tax exemptions and refunds.

Online public services at level 4 allow applicants to pay fees and receive notifications online.

Besides, the department will connect its system with port business offices, duty-free shops, transit procedures, goods information process and means of transport.

In particular, the risk management system will also be reviewed and upgraded starting this year to better serve the people and businesses. About the Viet Nam Automated Cargo and Port Consolidated System (VNACCS/VCIS), Tung stated that to enhance the system efficiency, the general department would boost communication, training and instructing on system operation for its staffs.

SBV to offer $404m of treasury bills

The State Bank of Viet Nam (SBV) will launch three releases of treasury bills tomorrow worth VND9 trillion (US$403.5 million).

The T-bills are Government bonds issued by the Ministry of Finance with terms of less than one year to assist in financing the State budget, and are an important tool for the central bank to operate monetary policies.

SBV said the bidding on the bills would be combined with competitive and non-competitive interest rates, of which bills with the non-competitive interest rates will not exceed 30 per cent of the total bid volume.

The central bank will offer three types of bills in three sessions on February 2.

Accordingly, the first session will issue bills of VND3 trillion ($134.5 million), with maturities of 13 weeks. Payment must be completed within the day, while the due date is March 5, 2016. The second session will issue bills of VND3 trillion with maturities of 26 weeks. Payment must be performed within the day, while the due date will be August 2, 2016. The third session will issue bills of VND3 trillion with maturities of 39 weeks. Payment must be completed within the day, with a due date of November 1, 2016.

Last year, the treasury issued VND31.13 trillion ($1.4 trillion) in T-bills.

On January 27, the State Treasury off-loaded VND2.111 trillion ($94.6 million) in 30-year bonds offered on that day, said the Ha Noi Stock Exchange (HNX), the bond auction organizer.

HNX 30-year bonds, the longest term for bonds so far sold in Viet Nam, were sold with a coupon rate of 8 per cent per year, adding that VND2 trillion ($89.6 million) in bonds were sold successfully, and the treasury offered another VND111 billion ($4.97 million), selling all in extra bidding that same day.

Meanwhile, the treasury only sold VND523 billion ($23.45 million) of the VND1 trillion ($44.84 million) three year bonds offered, the most attractive G-bonds in the market with a coupon rate of 5.78 per cent per year.

HNX said the treasury also offered VND3 trillion in five year bonds that day and sold VND2.4 trillion ($107.6 million) at a coupon rate of 6.58 per cent per year.

The exchange noted that the treasury mobilised VND10.776 trillion ($482.5 million) in G-bonds in January. In all 2016, the treasury plans to issue VND220 trillion ($9.86 billion) in G-bonds.

Lending rates seen likely to rise in ‘16

Interest rates will likely increase again this year, after remaining at the low levels of 2006 for the past few years, experts forecast.

Thanks to the restructuring of the banking system, the lending rate has been cut in half, from 20 per cent per year in late 2011 to between 9 and 11 per cent this year for ordinary loans, and 6.5 per cent for prioritised loans, which is equal to the 2006 rate.

However, capital mobilisation at banks has been busier than in past years, as the issuing of credit throughout the banking system has increased sharply, causing a temporary shortage of liquidity in some banks.

In fact, the issuing of credit in 2015 surged 18 per cent, compared with 12 per cent in 2011, 10.9 per cent in 2012, 12.51 per cent in 2013, and 14.16 per cent in 2014.

This year, capital demands on the economy are expected to be higher than last year. The central bank has also planned to expand the issuing of credit to roughly 20 per cent this year to meet the anticipated 6.7 per cent growth in GPD.

Therefore, according to HCM Securities Corporation, to guarantee the expansion of credit, mobilisation needs to grow parallel, while banks have to allocate resources to purchase government bonds and handle bad debts, thus putting pressure on interest rates.

Banks also need to increase deposit rates to attract depositors. Yet, if banks do not balance input and output costs, they would have to raise lending rates, HSC said, adding that low interest rates could be risky for the banking system.

Experts also said that it would be difficult for banks to cut interest rates this year, in the wake of impacts from both domestic and global financial markets.

Banking expert Nguyen Tri Hieu said that he saw no sign to indicate a reduction in rates this year, forecasting that the lending rate could rise at least 1 per cent this year.

Hieu said that banks were trying to mobilise capital, even as liquidity at some banks was poor, caused by their boosting lending too quickly, especially in lending for real estate development and purchases.

Further, he said, a possible increase in the US Federal Reserve Bank rate this year could also have an impact on Viet Nam's interest rates.

Another reason for higher interest rates is that Viet Nam expected its foreign exchange rate to remain stable, so the gap between interest rates of the dong and the US dollar must be high enough to attract dong deposits, according to Hieu.

He also noted that higher economic growth this year could push up the demands for capital, causing interest rates to increase, too.

Supermarkets, malls battle for sales

Le Minh Tuyen of HCM City, who was choosing a Tet (Lunar New Year) gift hamper to send to a relative in the city's Binh Thanh District, said, "Products for this Tet are abundant, diversified and have more eye-catching packaging compared to previous years, especially confectionary and sweets."

Prices are also reasonable, she said, adding that she took advantages of promotions to buy for Tet, which helped her save a lot.

Supermarkets and malls in the city are overflowing with a wide variety of products for the upcoming Tet, which falls on February 8 this year.

Besides increasing stocks by many times, they are also offering steep discounts on most items ranging from fresh foods and gift hampers to household utensils and fashion products.

Co.opmart and Co.opXtra have stocked large quantities of fruits, vegetables, poultry meat, pork, chicken eggs and others.

They are offering big discounts on various kinds of meat pies and Chinese-style sausages and a variety of Tet products in a promotional programme until February 7.

Hong Anh, marketing director of Saigon Co.op, which owns the supermarkets, said the promotion is aimed at helping consumers shop safely and economically for Tet.

The two supermarkets sold more than 200,000 Tet gift hampers last month, much higher than last year.

The number of customers who have registered for free delivery of gifts has gone up four-fold from last year.

Big C supermarket said sales had risen strongly, especially of packaged foods, confectionery, Tet hampers, home appliances, and fashion products.

It expects sales to rise further from now through the New Year.

The supermarket is offering up to 49 per cent discount on thousands of products like confectionary, sweets, beverages, meat pies, dried and processed foods, household utensils, cosmetics, and electronics until February 7.

The supermarket has stocked 500 tonnes of fruits, including gold-bullion grapefruits, square watermelons, watermelons engraved with the words "Tai Loc", and bottle gourd-shaped grapefruits.

Lotte Mart has increased stocks by 30 per cent compared to last Tet, including of canned foods, confectionary, sweets, Chinese-style sausages, and meat pies.

It is also offering attractive promotions on hundreds of Tet products like gift baskets and dried fish and shrimp.

SC VivoCity has been decorated based on the theme "Tet in three regions" and is organising some traditional New Year-related activities such as sticky-rice cake wrapping classes, calligraphy sessions, a bazaar, a lion dance performance and more.

To meet the massive shopping demand, the mall is offering discounts of up to 50 per cent on selected items and even offers a Ford Fiesta Sport 1.5L car for a lucky draw.

To meet the Tet rush, supermarkets have extended their opening hours as well as increased the number of cashiers to ensure convenience during the country's biggest festival.

Agro-fishery exports drop 3.1% in Jan

Agro-forestry-fishery exports are estimated to yield VND51,796 billion in January, an annual decrease of 3.1 per cent.

According to the Ministry of Agriculture and Rural Development (MARD), major farm produce shipped overseas brought home VND25,787 billion in revenue, up 2.8 per cent year-on-year.

Rice exports saw the highest growth with 495,000 tonnes sold for VND4,846,140 million, increasing 56.7 per cent in quantity and 46 per cent in value from the same period in 2015.

Cashew exports also did well with 24,000 tonnes worth VND4,068,090 million shipped overseas in the first month of the year, gaining 9 per cent in quantity and 15.6 per cent in value.

Peppercorn exports fell by 30.2 per cent compared to January last year to an estimated 7,000 tonnes. Revenue reached VND1,489,410 million, down 31.5 per cent.

The value of coffee and rubber products exported continued to drop despite larger shipments.

While the overall export turnover of agricultural produce rose, the figures for forestry and fishery products dropped.

Aquaculture exports were approximately VND10,114,650 million, a decline of 8.8 per cent from the same period last year. Forestry goods recorded export revenue of almost VND11,559,600 million, falling 15.1 per cent.

In 2015, agro-forestry-fishery export revenue reached VND676,904 billion, just 0.2 per cent higher than the previous year.

China, US cyber hackers targeting local systems

Hackers from China and US launched the most cyber attacks against systems in Viet Nam last year, recent statistics from the Viet Nam Computer Emergency Response Team (VNCERT) revealed.

According to VNCERT, cyber attacks are becoming more serious.

Viet Nam is a country with the fastest information and technology (IT) growth in Southeast Asia, thus, it has become a target for global cyber criminals.

The VNCERT tracked and recorded the attacks on information systems in Viet Nam and revealed the top countries with the most IP sources attacking the country.

Of these, China and the US took the lead, followed by Russia, Switzerland, Netherlands, Ireland, France, Romania and Germany.

The VNCERT warned that as these countries have developed IT industries, domestic agencies and organisations should closely co-operate with countries in the region as well as in the world to update and improve response capacity against hackers from many countries worldwide.

VNR earns VND275,652 million in pre-tax profits

The Vietnam National Reinsurance Corporation (VNR) earned pre-tax profits of VND278 billion (USVND275,652 million) in 2015, more than twice the company's target for last year, it was reported at its shareholder's meeting on Friday.

In 2016, VNR will expand its risk management mechanisms and improve its business performance to increase its market share in the reinsurance sector.

Further, this year, the company will work to better its performance in some insurance business segments, such as cancer insurance, credit insurance and natural disaster insurance, while providing an improved added value chain for customers, while increasing its competitiveness in both domestic and overseas markets.

Ba Ria Rubber to sell 20 million shares at IPO

Ba Ria Rubber Company Limited will sell nearly 20 million shares during an initial public offering (IPO) on March 11, the HCM Stock Exchange (HOSE) announced on Friday.

The starting price for the IPO is VND12,610 (USVND12,449) per share, and brokerage firms seeking to represent Ba Ria Rubber Co Ltd in the IPO must sign up at HOSE by the end of February 2.

Ba Ria Co Ltd grows and processes rubber, sells rubber latex, exploits wood and manufactures rubber products. The company was founded in 1994 and has a capital of VND1.1 trillion (VND1,111,500 million).

SMC loses VND193,401 million last year

SMC Investment Trading Joint Stock Company (SMC) recorded a loss of VND195 billion (USVND193,401 million) last year, as the company saw a net profit of VND5 billion (VND4,939,506,000) in the fourth quarter.

In the final quarter of 2015, SMC took in revenues of VND2.05 trillion (VND2,022,930 million), nearly half of the figure in the fourth quarter of 2014 as market prices decreased sharply, dragging down company sales.

However, the company managed to earn a net profit of VND5 billion (VND4,939,506,000) in the fourth quarter of last year, as its quarterly expenses decreased significantly, such as its financial expenses, selling expenses and management expenses.

Hoa Phat Group sets up new agricultural firm

Hoa Phat Group Joint Stock Company (HPG) has created the Hoa Phat Agricultural Development Joint Stock Company, with a charter capital of VND2.5 trillion (USVND2,467,530 million).

The new company will be set up at Pho Noi A Industrial Zone in Hung Yen Province, and focus on raising animals, producing animal feed and other animal-raising support activities.

Hoa Phat Group also allowed Hoa Phat Agriculture to purchase all of Hoa Phat Group's stakes in other animal raising companies and animal feed producers, at a buying ratio of 1:1.

AEON earns US$150 million exporting Vietnamese goods to Asian markets in 2015

A Japanese leading retailer in Asia had its business in Vietnam export goods worth millions of dollars last year, its executive has said.

The total profit gained from shipping Vietnamese goods to Asian markets in 2015 was nearly US$150 million, Nagahisa Oyama, CEO of AEON Vietnam, said in a meeting with Nguyen Thanh Phong, chairman of the People’s Committee of Ho Chi Minh City.

The profit is estimated to be much higher since more and more products of Vietnam have gained mass appeal in Japan.

According to Oyama, with more than 10,000 AEON stores in Japan, Vietnamese goods will have great access to customers in every corner of the nation, especially clothes, processed food, and more.

The Japanese retail giant also plans to inaugurate the fourth mall in Tan Binh District, Ho Chi Minh City in early July, which will raise its total investment in Vietnam to US$500 million, the executive said.

AEON has been present in Vietnam since 2009, in the form of a representative office from December 1, 2009 to July 10, 2012, according to its website.

On October 7, 2011, with approval from the Ho Chi Minh City People’s Committee, AEON set up its Vietnam Company Limited to construct and operate modern shopping malls, general merchandise stores, and supermarkets, as well as carry out other business activities related to import, export, trading, and research.

The Japanese retailer now has three shopping centers in Vietnam: AEON Mall Tan Phu Celadon in Tan Phu District, Ho Chi Minh City, AEON Mall Binh Duong Canary in Binh Duong Province, and AEON Mall Long Bien in Long Bien District, Hanoi.

Private sector important driving force of Vietnam’s economy

The draft document of the 12th National Party Congress considers the private sector an important part of the economy.

Delegates to the Congress said the development of the sector will contribute significantly to Vietnam’s international integration.

It is the first time that the private sector has been mentioned as an important part of the economy in a draft document of a national Party Congress. Vietnam now has approximately 500,000 private businesses, which employ half of Vietnam’s workforce and generate 40% of the national GDP.

Vice-chairman of Tay Ninh province’s People’s Committee Nguyen Thanh Ngoc said the draft document reflects the Party and state’s acknowledgement of the private sector’s contributions to national development.

He said the sector should be given more state support and opportunities for equal competition.

“We need specific directions and policies to encourage the development of the private economic sector. A fair solution would be to offer incentives on which private businesses can plan their production,” Ngoc added.

Most Vietnamese private businesses are small or medium-sized and their competitiveness, administration, and product quality are low. Delegates say economic institutions should be reformed to develop a highly competitive private business community, which will create more jobs in the future.

Deputy Party Secretary of Dak Nong province Ngo Thanh Danh noted, “Specific policies for each type of business and each region are needed. Prompt motivation and encouragement will increase the role of private businesses in the economy.”

Delegates believe that the Party’s ideology on the private economic sector at this congress will soon be turned into policies and mechanisms.  

Survey reveals how Vietnamese consumers plan on spending for Tet

Vietnamese consumers will dedicate most of their spending for self and household in the upcoming Tet (Vietnam’s Lunar New Year) holiday, a TNS survey finds.

Fifty-seven of polled consumers say they will spend VND5.5 million to VND15 million (US$246-US$670) on for self and household, mostly for food, clothing, and home improvement, in preparation of Vietnam’s biggest holiday, global market research consultancy TNS said on January 29, citing its Consumer Pulse study.

The Lunar New Year’s Eve this year is on February 8, but the shopping spree for the holiday normally starts at least a month before hand.

The categories “Gifting/supporting others” and “Lucky money” account for a smaller percentage of Tet spending, with 66% of consumers reporting to spend just VND1 million to VND5.5 million (US$45-US$246) in each area, according to the survey findings.

Within the gifting category cash gifts/envelopes, food and beer lead spending with 45%, 32% and 29%, respectively.

Generally, 93% of Vietnamese plan to increase normal spending for Tet, and overall consumers are estimating to spend VND14.2 million (US$643) for Tet this year, which is over VND4 million (US$179) greater than 2015, according to TNS.

When further broken down we can see by just how much Vietnamese are planning to increase spending for Tet 2016 compared with 2015 across categories.

Specifically, within the travel category spending is expected to increase by VND283,000, and food for self/household sees a planned increase of VND261,000. It is even more dramatic for spending and supporting others where food has a planned increase of VND502,000, the largest of any measured category.

The study also finds that Vietnamese desire many things for Tet including clothes, and food and beverage.

The most desired category is fashion/accessories, at 25%, whereas 19% of Vietnamese most want vehicles for Tet, and high-tech devices, 11%.

The TNS’s Consumer Pulse not only reveals big plans for spending increases, but also discovers when consumers plan to do their holiday shopping.

Specifically, the shopping season starts five to six weeks prior to Tet, and peaks when there are two to three weeks ahead of the Lunar New Year. Only 30% of consumers wait for the last week prior to the holiday to begin shopping.

The Consumer Pulse report released on January 29 is the very first of its kind to be conducted by TNS for 2016. It featured several questions to better understand how Vietnamese are planning to ring in the Lunar New Year in celebration of Tet, according to TNS.

Besides the special section for Tet, the latest study also reveals that Vietnam’s consumer confidence is at its highest level since 2008.

In 2008 89% of surveyed consumers held a positive outlook for Vietnam’s economy, believing it would improve over the next 12 months. However, the consumer confidence index has fluctuated over the years, before reaching 90% in 2016, a rebound from the 2012-2014 slump and a great improvement from 2015, according to the survey.

The study finds that the savings vs expenditure rate in 2016 is 10% /90%, compared to 22% /78% in 2008.

When asked about their intention to spend more or less in 2016 compared to 2015, only 4% of Vietnamese consumers are planning to spend less in 2016, according to the survey.

TNS is part of Kantar, the data investment management division of WPP and one of the world's largest insight, information and consultancy groups.

The TNS’ Consumer Pulse study, focusing on consumer’s spending patterns, consumer confidence, and lifestyle and attitudes, is done quarterly within Vietnam.

It surveys respondents in both Ho Chi Minh City and Hanoi to discover their feelings and outlooks towards the Vietnamese economy.

Japanese investors eye Vietnam’s real estate market

Nine major real estate agents from Japan have visited two major projects in Ho Chi Minh City, in search for investment chances in the southern Vietnamese metropolis.

The real estate brokers, hailing from Nagoya, the capital of Aichi Prefecture, have put the Vinhomes Tan Cang, located in Binh Thanh District, and the backpackers’ area, located on Bui Vien Street in District 1, into consideration.

Vietnam’s realty market has emerged as a potential destination for Japanese investors, as the Japan’s property market has staggered as over declining population, according to Jun Mizutani, chairman of Oyasogo Co.

Mizutani emphasized that the demand for real property in Vietnam is so tremendous that it appeals lots of foreign investors.

Oyasogo has plans to first purchase ongoing condominium projects in good locations, before continuing to find suitable land plots for investment, according to the chairman.

The company is also eying on tourism property investment on the southern island of Phu Quoc and in the resort city of Nha Trang in the south-central region.

The number of Japanese investors seeking investment chances in Vietnam’s real estate market has rocketed in recent time, according to Keiji Yoshida, director of Japanese market with TNK Travel.

These investors have poured their investment on many countries from all over the world before deciding to head for Vietnam, Yoshida said.

Rice exports off to a good start for January

Statistics released by the Ministry of Agriculture and Rural Development (MARD) show that rice exports for January surged 56.7% year-on-year in volume to 495,000 metric tons and 46% in value to US$218 million.

A lot could change, but Huynh The Nang, president of the Vietnam Food Association, is bullish on exports for the next six months based on negotiations underway with buyers from several key markets.

The Philippine National Food Authority says it has plans to purchase 50,000 metric tons said Vietnam and Thailand buyers have strongly indicated they are going to place a large order soon to add to disaster inventories.

In addition, negotiations are underway with the Indonesian government buyers to acquire 350,000 metric tons of rice during the first quarter of the year.

Auchan vies for retail market space

French company Groupe Auchan has stepped into Vietnam’s growing competitive retailing market  through its arm AuchanSuper.

Adding to its three Simply Mart stores in Ho Chi Minh City, AuchanSuper will open 15 more, each with an area between 2,000 and 3,000 square metres.

In the north, the retail giant has plans to open its first Simply Mart store in the Mipec Long Bien trade centre towards the end of 2016.

By 2020, AuchanSuper aims to have 20 stores in the north.

According to Philippe Deladande, financial director for Groupe Auchan, the group’s total investment into Vietnam will be as high as €35-40 million ($38-44 million).

To serve its expansion plan in Ho Chi Minh City and Hanoi, AuchanSuper is co-operating with two different partners. In the south of Vietnam, AuchanSuper has chosen RH Group as its local partner.

This group has 20 years of experience in retail, and is responsible for developing the S.Mart supermarket chain since 2012. RH Group is part of C.T Group, which is well known in Ho Chi Minh City with 36 member companies in six fields of business: real estate, upscale retail, construction, finance, food-entertainment, healthcare and education, plantation, mining and ecotourism.

Meanwhile in Hanoi, AuchanSuper’s partner is Mipec. Although Mipec does not have much experience in retail, it does own 50 major locations and has a slew of large real estate projects in the north, in addition to several other smaller locations. Together, AuchanSuper and Mipec will establish a specialised joint venture in retail.

Even though its chain is still relatively small, AuchanSuper’s entry into the market is expected to heat up the competition considerably. The group has had previous successes in the Asia-Pacific region through Sun Art Retail, a joint venture with Taiwan’s RT Mart. The success of this retail chain is rooted in the fact that it caters to local tastes. SunArt also has discount programmes that align with local customers.

After Casino Group’s Big C, Simply Mart is the second French supermarket chain to set foot in Vietnam. The telling difference between the two is that, while Casino is looking to sell the highly successful Big C in order to pay its debts, Auchan is completely unburdened by debt.

In fact, as a company renowned for its solvency, many international financial institutions have courted it as a client. In 2014, the International Finance Corporation announced that it is considering a €250 million ($272.6 million) loan to AuchanSuper to help the latter expand over the next three years in emerging markets, including Vietnam.

AuchanSuper operates 774 hypermarkets and 817 supermarkets in 15 countries, with 302,000 employees. It is the fourth biggest retailer in France with 9.2 per cent market share, and tenth biggest globally in terms of revenue.

The company operates in four fields that compliment one another: hypermarkets, supermarkets, commercial real estate, and consumer banking. It also owns several chain stores, including Decathlon (sports goods), Tapis Saint-Maclou Kiabi (clothes), Boulanger (home appliances), and Flunch and Pizza Pai restaurants.

According to German market research firm Statista, the size of Vietnam’s retail market is set to rise as high as $100 billion in 2016.

Vietnam is considered a potentially lucrative market for modern retailing as consumers here are switching from traditional retail channels, such as wet markets, to supermarkets.

Nearly 5,000 enterprises back in business in January

A total of 4,872 enterprises managed to resume operations in January, the highest monthly figure in recent years and up 69.6 per cent against January last year, according to the General Statistics Office (GSO). In January 2014 and January 2015 2,375 and 2,872 enterprises, respectively, resumed operations.

There were also 8,320 new enterprises in the first month of the year, with total capital of VND59.3 trillion ($2.7 billion), 21.2 per cent higher year-on-year in number and 87 per cent in capital.

The number either suspending or ceasing operations was also high, however. Procedures to shut down operations were completed by 34.7 per cent more enterprises year-on-year, to 1,338. Most were of small size with registered capital of less than VND10 billion ($456,600) each.

Companies that declared a temporary suspension of operations numbered 12,456, up 27.5 per cent year-on-year.

Last year more than 94,750 businesses were established, with total registered capital of VND601.5 trillion ($27.46 billion), up 26.6 per cent and 39.1 per cent over 2014, while more than 9,400 were dissolved, down 0.4 per cent year-on-year.

Ground broken at Satra Tax Plaza

The Saigon Trading Group (SATRA) held a breaking ground ceremony on January 29 for the Satra Tax Plaza in District 1, Ho Chi Minh City.

According to Deputy General Director of Satra, Tran Van Bac, the Ho Chi Minh City People’s Committee assigned the group to build the 40-storey multi-function complex on the site of the old Saigon Tax Trade Center, retaining the façade. The new complex includes two basements for shops, supermarkets, and entertainment centers, with connection to a station on the Ben Thanh - Suoi Tien urban railway line, four parking basements, office space, hotels, and a heliport on the roof.

Satra has selected a number of international consultants and a chief designer from the US.

The building meets all requirements in terms of aesthetics and functionality and is in harmony with the old architecture of other buildings in the area, such as the People’s Committee, the Rex Hotel, and the Opera House.

Built in the early 20th century, the Saigon Tax Trade Center was a long-standing and renowned commercial center in the heart of District 1. Originally called Les Grands Magazins Charner, it bears all the characteristics of colonial French architecture like those found in such constructions as Ben Thanh Market, Notre Dame Cathedral, the Central Post Office, the Opera House, Reunification Palace, and Ho Chi Minh City People’s Committee.

In September 2014 the building was handed over for the construction of the railway station, with SATRA given permission to build a 40-storey complex with a shopping mall, offices, exhibition space, conference rooms, and underground parking.

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