Electronic firms asked to ensure sustainable employment

Electronic enterprises should practice their social corporate responsibility through abiding by labour law, thus contributing to promoting sustainable employment in the firms, heard a seminar in Hanoi on January 31.

Participants at the event should focus on major measures such as abolishing the use of child labourers, ensuring employment security and stable jobs for post-35 year-old employees, and eliminating discrimination in employment and occupation.

The firms should engage strongly in developing skills for workers to meet demands in the new technology era, while providing a safe environment for them together with adequate wage and social welfare, they added.

According to the Institute of Labour Science and Social Affairs, the growth of Vietnam’s electronic sector is mainly attributed to investment from multinational businesses, especially those from the Republic of Korea and Japan.

By 2016, the firms employed 451,181 labourers, mainly women and under 35 years old, with poor skills. The fourth industrial revolution is likely to affect their employment.

A survey by the institute shows that 68 percent of electronic firms agreed that Vietnamese labourers are able to adapt to new technology.

Meanwhile, Chief Inspector of the Ministry of Labour, Invalids and Social Affairs Nguyen Tien Tung revealed that 67 inspections from March to October 2017 on 67 electronic businesses in 10 localities discovered 1,794 violation cases, mostly in contract, working time, and labour safety.

Tax sector asked to surpass State budget estimate

The Finance Ministry’s General Department of Taxation should strive to surpass at least 3 percent of the State budget estimate of more than 1,070,200 billion VND (55.88 billion USD), said Prime Minister Nguyen Xuan Phuc.

He made the statement during a conference in Hanoi on January 31 to review the sector’s 2017 performance and launch tasks for 2018. 

The leader requested that the rate of delayed tax payment should be below 5 percent of the total State collection this year.

The PM asked for continuing to cut 50 percent of procedures for specialised inspection and 50 percent of business requirements, ensuring that 26 percent of the total State spending will be used for development investment and 64.1 percent for regular expenditure. 

To achieve the above targets, he stressed the need to speed up administrative reform by using technological advances in tax declaration, payment and management, towards scaling down payment in cash. 

General Director of the General Department of Taxation Bui Van Nam said the sector asked agencies to work hard to achieve set targets, closely monitor the progress of State budget collections, and step up inspection over tax declaration and payment. 

He said at least 18.5 percent of the total number of businesses will be under inspection this year to prevent loss of revenue to the State budget. 

Last year, the sector collected a record 1.019 quadrillion VND to the State budget, up 5.2 percent of the estimate and higher than 968.58 trillion VND as assigned. 

Tax agencies also conducted 103,211 inspections, or 113.65 percent of the plan, collected 44.773 trillion VND in delayed tax payment, equivalent to 59.5 percent of the total as of December 31, 2016, he said.

2018 Happy Tet Fair features various products

The 2018 Happy Tet Fair opened at the Saigon Exhibition and Convention Centre (SECC) in Ho Chi Minh City on January 31 with more than 300 booths of prestigious domestic and international brands.

On showcase are not only Vietnamese specialties in Tet (Lunar New Year), but also numerous products including food, organic milk, cosmetics and household appliances from Thailand, Japan and the Republic of Korea, among others.

Visitors have a chance to enjoy discounts of up to 50 percent. Many travel agencies offer Tet tours on the occasion with attractive gifts and vouchers.

SECC General Director Thuong My An said the fair aims to introduce high quality products at reasonable prices to consumers. Dishes from various regions of the country are also served at the event, she added.

The fair runs until February 4 and is expected to welcome more than 40,000 domestic and foreign visitors.

Hong Kong - gateway for Vietnamese products reach out to world

Hong Kong (China) is one of the important gateways for Vietnamese products to enter other large markets in the region and the world, an official has said.

Ho Xuan Lam, Deputy Director of the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC), made the remark at a workshop which was jointly held in HCM City on January 31 by the Hong Kong Trade Development Council (HKTDC) and the ITPC.

Lam said Hong Kong is one of the potential markets that Vietnam will exploit in 2018, saying that Hong Kong is not only a destination market but also a bridge to bring Vietnamese products to other broader markets in Asia and the world as it is home to many large-scaled commodity trading floors.

Sharing Lam’s opinion, Ly Kim Chi, President of the Food and Foodstuff Association of HCM City, said Hong Kong is a potential market for Vietnamese agricultural products and foodstuffs.

Not just meeting the demand of Hong Kong people, Vietnamese products traded in the market will be distributed to many nations in the world thanks to a global network of retailers, Chi elaborated.

However, only a small volume of Vietnamese rice and dragon fruits are currently available in supermarkets in Hong Kong, Chi said, attributing the situation to a lack of trade promotions in and information about the market.

Meanwhile, Tina Phan, Director of the HKTDC Indochina, described Hong Kong  as an ideal market for Vietnamese exporters to expand their markets and connect with the regional and global supply chains since it is also a gateway to enter China, the world’s most populous nation.

According to Phan, Vietnam has a large number of high-quality products, particularly agricultural products and food, which have become favourite among foreign consumers. However, Vietnam’s exports have failed to match its potential due to limits in trade promotions in international markets and building brand names.

In order to increase Vietnam’s exports to Hong Kong, thus joining large supply chain, experts suggested Vietnam and Hong Kong increase trade promotion activities and share information about the markets and facilitate connections among their enterprises.

Vietnamese firms should actively participate in trade fairs and trading floors to access targeted clients and partners, the experts said, adding that they also need strategies to develop their brand names and and promote their products more effectively.

Breakthrough measures needed to improve businesses’ health

 Deputy Prime Minister Vuong Dinh Hue has asked for a breakthrough in improving the health of businesses, especially State-owned enterprises (SOEs) in 2018.

Chairing a meeting of the Steering Committee for Business Reform and Development in Hanoi on January 31, Deputy PM Hue, who is head of the committee, noted that the health of businesses is better as 47.3 percent of firms enjoyed profit in 2017, while the figure in 2012 was only 30 percent.

Of the profitable firms, 83.5 percent are State-owned. However, the profit percentage on capital and turnover remains low, while business management of the firms is still weak, he noted, stressing the need to continue reducing cost for enterprises, including financial and operational cost, he said.

He pointed out that the current number of enterprises is far behind the target of 1 million in 2020, as in 2018, the country aims for only 135,000 new firms.

A report of the Steering Committee for Business Reform and Development showed that the number of SOEs has reduced sharply to over 500, including seven economic groups, 57 corporations, and 441 independent businesses run by ministries, sectors and localities. 

Wholly state-owned firms are now present in 11 sectors instead of 60 in 2001.

Nguyen Hong Long, deputy head of the committee, said that in 2017, 69 State-owned enterprises were approved for equitisation, including large businesses worth over 1 trillion VND (44 million USD). State capital in equitised firms last year was 160.08 trillion VND, 6.34 times higher than that of 2016.

Long said that the State has so far withdrew 8.91 trillion VND in book value and gained 139.38 trillion VND from SOE divestment.

Last year, the country saw a record number of newly-established enterprises with 126,859 firms, up 15.2 percent compared to 2016, raising the total operating firms to over 561,000, he added.

Mentioning 2018 tasks, Deputy PM Hue urged ministries and sectors continue completing legal institution and framework in managing and operating SOEs as well as accelerate equitisation, re-organisation and capital divestment of the firms.

This year, four large enterprises with highest capital in the 69 equitised groups and corporations in 2017 will launch their initial public offering (IPO) on the stock market: the Vietnam Rubber Group, PetroVietnam Oil Corporation (PVOIL), the PetroVietnam Power Corporation, and Binh Don Oil Refinery.

The Deputy PM said equitisation targets the improvement of governance capacity and effectiveness of the firms.

Along with reviewing and handling State-owned enterprises with losses and ineffective operation, Hue asked for reshuffling of key leaders in equitised businesses.

Gas price down 1,667 VND per kg in the south from February 1

The retail price of gas in southern localities, including Ho Chi Minh City, will reduce by 1,667 VND (0.07 USD) per kg or 20,000 VND (0.88 USD) per 12kg cylinder from February 1, in comparison with that of January.

Consumers can buy a 12kg cylinder of PetroVietnam Gas, Vtgas, SP or Petrolimex at a price between 330,000 VND and 335,000 VND.

The decrease is attributed to a fall in the world’s gas price in February, which stands at 515 USD per tonne, down 65 USD per tonne compared with that of January.

The new price level has been announced to gas business agents and consumers in the southern region.

HCM City: 200 enterprises honoured for contributions to customs sector

The Customs Department of Ho Chi Minh City held a conference on January 31 to honour 200 outstanding enterprises which had contributed much to the sector’s budget in 2017.

The businesses, including the Imex Pan-Pacific Group (IPP Group), Truong Hai Automobile JSC, Phu Nhuan Jewelry JSC and Unilever Vietnam International Company Limited, account for only 0.43 percent of the city’s total, but contributed 45 percent of the customs sector’s budget collection, or 48.5 trillion VND (2.13 billion USD).

Deputy head of the department Dinh Ngoc Thang appreciated the businesses’ cooperation with the customs sector, affirming that they have made effective recommendations to help the sector gradually improve its policies and mechanisms.

Thang pledged that the department will continue facilitating the implementation of customs procedures at border gates, disseminate new legal documents and regulations to enterprises.

It will exert efforts to fight goods smuggling and trade fraud, and to create a favourable business and healthily competitive environment for businesses.

IPP Group President Johnathan Hanh Nguyen stated that the customs sector of Ho Chi Minh City carried out numerous modern management programmes to create favourable conditions for import-export enterprises and people.

He stressed the need for the sector to take more measures to prevent fake and smuggled products in order to protect true businesses which contribute much to the city’s budget.

Dong Nai lures over 62 million USD of FDI in January

The southern province of Dong Nai has licenced seven foreign direct investment (FDI) projects in January with total capital of 62.1 million USD, up 50 percent from the same period last year.

According to the Department of Planning and Investment, among the projects, four are new, with combined investment of 22.7 million USD. Meanwhile, 39.5 million USD is injected into three underway projects.

The projects are in the support industry and friendly to the environment, and apply high technology.

Major projects are August Sport Company, a branch of the All Wells International – British Virgin Islands in Tam Phuoc industrial park of Long Thanh district with investment of 5 million USD, and the 2-million-USD Vietnam Global Production Company under the Jacon Investment Holdings Pte Limited of Singapore in Nhon Trach 2 industrial park, Nhon Phu district.

The department said that Dong Nai has so far hosted 1,754 FDI projects worth 31.9 billion USD, including 1,294 valid projects totaling 26.9 billion USD, and 460 revoked projects with investment of 5 billion USD. The projects are invested by investors from 45 countries and territories. The Republic of Korea, Taiwan (China) and Japan are leading the investors. 

Hanoi takes action to better protect consumers’ rights

Hanoi will intensify educational campaigns to raise public awareness about the rights of consumers as part of efforts to better protect consumers’ interests. 

The city’s Department of Industry and Trade held a conference on January 31 to plan activities to respond to the Day of Consumers’ Right 2018 launched by the Ministry of Industry and Trade under the theme of “Healthy business – Sustainable consumption”.

From April to July this year, communication activities will be conducted across the city’s wards and districts, enterprises and schools to popularise laws and regulations on consumers’ rights, with the municipal radio and TV station to broadcast regular programmes on the issue.  

The city will send officials to southern localities to learn from their experience in the field, while upgrading the operation of the hotline on consumers’ right at 024.1081. 

In addition, the city will run two promotional campaigns in March, offering commodities at good prices to consumers, with the participation of many supermarkets, trade centres, shops and service chains.  

Deputy director of the Hanoi Department of Industry and Trade Nguyen Thanh Hai said businesses participating in the promotional campaigns this year have shown more attention to consumers’ rights through improving after-sale and customer care services. Many of them commit to selling products of authentic origins and meeting declared standards. 

Participants at the conference said the launch of the Day of Consumers’ Right 2018 is useful in building a healthy market, enhancing the sense of responsibilities of state management agencies and related mass organisations as well as their coordination in protecting consumers’ rights.

Vietnam Airlines in Hong Kong seeks international partnership

The national flag carrier Vietnam Airlines’ branch in China’s Hong Kong held a meeting with its partners on January 30.

Director Cao Chinh Mien said Vietnam Airlines continued to affirm its prestige as a modern and dynamic airline in 2017.

The airline carried more than 26.5 million passengers and its revenue increased by 6.7 percent compared to 2016. Post-tax profits doubled the set target while its stock grew steadily, he said.

Last year, Vietnam Airlines was certified as a 4-star airline by Skytrax for the second consecutive year. It is also of the most punctual airlines in the world with on-time performance index of above 90 percent.

The airline was also recognised as the “World’s Leading Airline – Premium Economy Class” and the “World’s Leading Cultural Airline” at the World Travel Awards.

Given fierce competition, Vietnam Airlines’ branch in Hong Kong has improved the quality of services, stepped up coordination with travel agencies and carried worked to promote its image.

It also served as a transit centre of Asia and aimed to draw tourists from other markets.

In 2018, Vietnam Airlines will conduct one to two flights per day on routes between Hong Kong and Hanoi and Ho Chi Minh City, while considering the use of B787-9 Dreamliners for Hong Kong – HCM City flights.

The airline will put forth measures to boost cooperation with other airlines such as Jetstar Pacific and Cambodia Angkor Air in 2018 and aim for 8-10 percent growth in revenue, according to Mien.

TH Group opens first high-producing dairy farm in Russia

Vietnamese dairy maker TH Group inaugurated a high-producing dairy farm in Volokolamsk district, Russia’s Moscow Oblast, on January 31.

The farm is the first of its kind for TH Group and part of a high-tech dairy farming and processing complex and food projects, worth 2.7 billion USD in total, in Russia.

It received the first 1,100 high-producing Holstein Friesian cows, imported from the US, on January 3. Milk productivity is expected at 11 – 12 tonnes per cow every 305 days, helping the farm produce 30 tonnes of milk a day.

Thai Huong, founder of TH Group, said her business will continue building farms and importing cattle to finish phase I of the project this May.

With total investment of 500 million USD, the project is set to cover more than 50,000ha and farm 45,000 cows. When fully operational, it will produce more than 234,000 tonnes of milk per year.

Aside from the dairy farm project in Moscow, TH Group is also building a dairy farm in Kaluga Oblast and plans to unveil the facility late in the first quarter of 2018.

The firm also signed agreements on investing in Tyumen Oblast and the Republic of Bashkortostan and is preparing to carry out another dairy project in the Russian Far East.

According to Russia’s National Dairy Producers Union, there were 8.25 million dairy cows in Russia in 2016, producing 30.7 million tonnes of fresh milk. However, the country had to import about 7.2 million tonnes of milk and is still facing a shortage of milk supply.

European food, beverage firms eye Vietnam

Nineteen European food and beverage companies are visiting Vietnam to explore partnerships with local importers and distributors.

The EU-Vietnam Business Network on January 31organised the 4th edition of the Food & Beverage Trade Mission to Vietnam, which will be held in Ho Chi Minh City and Hanoi until February 2.

This year’s trade mission includes companies from Estonia, Finland, France, Germany, Greece, Ireland, Italy, Poland, Portugal and the United Kingdom.

Topics to be discussed at the information seminar will be the growth potential of Vietnam’s food and beverage industry, financial benefits that will derive from the soon-to-be-implemented EU-Vietnam Free Trade Agreement (UVFTA) and imports of European products to Vietnam.

More than 230 B2B meetings with Vietnamese distributors and importers based in Hanoi and HCM City, as well as business visits to supermarkets and shopping malls, will follow the four-day event.

The business network is co-funded by the European Union, which aims to strengthen European business activities in Vietnam, with a special focus on small and medium-sized companies (SMEs) seeking cooperation opportunities in Vietnam.

Since 2015, the last three editions of the network’s Food & Beverage Trade Mission have welcomed 62 European companies.

The network aims to improve the investment and trade environment, support exports and expand investment markets from Europe to Vietnam and ASEAN.

Target groups are European companies, especially SMEs, interested in Vietnam and ASEAN.

While the project is based in Vietnam, the business network also works with an ASEAN network of business associations, to provide even more business opportunities to European companies.

Retail sales up 9.5 percent in January

Total revenue from retail trade and services reached 361 trillion VND (15.84 billion USD) in January, surging 3 percent over December and 9.5 percent over the same month last year.

If inflation were excluded, the amount marked a year-on-year increase of 8.4 percent, a report of the General Statistics Office (GSO) revealed.

Retail sales of goods topped more than 272 trillion VND (11.93 billion USD), up 3.5 percent month-on-month and 8.3 percent year-on-year as domestic firms focused on stockpiling goods to meet rising demand of local consumers for the forthcoming Lunar New Year (Tet) holiday, GSO said.

The sectors recording a positive revenue increase include home appliances (up 8 percent), food and foodstuff (up 7.5 percent) and transport services (up 5.6 percent).

Meanwhile, retail sales in accommodation, restaurant and catering services experienced a yearly increase of 15 percent to 45.1 trillion VND (198 million USD), thanks to a strong increase in the number of international and domestic tourists and a rising demand for restaurant and catering services.

Some localities that posted positive accommodation, restaurant and catering sale in January were the northern province of Quang Ninh (30 percent), central Thanh Hoa province (15.2 percent), HCM City (9 percent) and the capital city of Hanoi (8.5 percent).

In the first month of this year, revenue from tourism services also saw significant year-on-year growth of 39.3 percent to 3.9 trillion (171 million USD), with some provinces and cities recording strong growth, such as Ninh Binh (76 percent), Quang Ninh (46 percent), HCM City (44 percent), Bac Ninh (34 percent) and Hanoi (33 percent).

The reviewed strong increase was attributed to the positive influence of the country’s policies and measures on attracting visitors and effectiveness of its tourism promotion campaigns, GSO said.

The sales of other services during January reached more than 40.1 trillion VND (1.76 million USD), a hike of 10 percent compared to a year ago. 

The annual growth rate (excluding the price factor) of the country’s total revenue from retail sales of goods and services for the period from now to 2020 will average at 13 percent per year, and rise to 14 percent in 2021-25. The value will reach some 5.8 quadrillion VND by 2020, 11 quadrillion VND by 2025 and 44 quadrillion VND by 2035.

These fingures were revealled in the Ministry of Industry and Trade’s draft strategy on domestic trade development, which is being publicised for recommendations.

Domestic economic sector will account for some 80 percent of the country’s total retail sales revenue by 2020, while the foreign direct investment (FDI) sector will make up about 20 percent before rising to 70 percent by 2025 as per off the draft strategy.

Vietnam Airlines uses new aircraft for Hanoi – Moscow route

Vietnam’s national flag carrier Vietnam Airlines will use the Dreamliner Boeing 787-9 - one of the most modern aircraft in its fleet – on the Hanoi – Moscow route.

The first Dreamliner Boeing 787-9 to fly on the route is scheduled to land at Moscow Domodedovo Airport at 5pm on March 27.

Capable of accommodating 311 passengers, the airplane offers inflight services meeting 4-star international standards. It can save up to 20 percent of fuel compared to previous versions of Boeing aircraft.

Speaking at a ceremony to announce the event, Vietnamese Ambassador to Russia Ngo Duc Manh stated Vietnam Airlines’ operation of Dreamliner Boeing 787-9 on the route showed Vietnam’s appreciation of its partnership with Russia.

Le Thanh Dung, head of Vietnam Airlines representative office in Russia, said the move reflects the airline’s intention to consolidate its foothold in Russia and expand its network.

In 22 years of operation, Vietnam Airlines has so far carried 200 million passengers from across the world.

RoK firms seek investment opportunities in Binh Phuoc

A delegation from the Republic of Korea (RoK) led by Cho Moon Soo, President of Hank Cuk Carbon Group, met with leaders of the southern province of Binh Phuoc to seek investment opportunities in the locality.

Cho said that his company, a manufacturer of carbon material, crystal fibre, aircraft material and heat-insulating panels, has planned a project in Binh Phuoc and hopes for swift approval from the province.

The group is also investing in a project in Becamex Binh Phuoc industrial-urban area in Chon Thanh district, which is scheduled to start in the first quarter of 2018.

Secretary of the provincial Party Committee Nguyen Van Loi lauded RoK investors for investing in the province. He pledged the province will create optimal conditions for RoK enterprises and Hank Cuk Carbon to implement their project effectively.

Loi also committed to remove obstacles facing investors.

In recent years, Binh Phuoc has worked to improve its investment environment to lure more investment to its industrial parks, especially the Becamex industrial-urban area.

Phu Quoc island greets 260,000 tourists in first month of 2018

Nearly 260,000 tourists came to Phu Quoc island in the Mekong Delta province of Kien Giang in January 2018, a year-on-year rise of 51 percent.

International tourists increased by 40 percent against the same period last year.

On average the district welcomed about 7,000 holidaymakers each day.

According to Vice Chairman of the district’s People’s Committee Huynh Quang Hung, Sun Group will put into operation An Thoi – Hon Thom cable car in early February to serve tourists on the traditional New Year (Tet).

The district is carrying out measures to ensure safety for tourists during Tet holiday.

Located on the Vienam-Cambodia-Thailand marine economic corridor, Phu Quoc is dubbed the “pearl” island.

Phu Quoc features a monsoon tropical climate. It has two seasons, the dry season from November to April and the rainy season from May to October. The average temperature is 28 degrees Celsius, allowing visitors to enjoy the island’s beauty at any time of the year. 

Phu Quoc National Park is one of the most attractive places in the district. It is home to 929 plant species, of which 42 are listed in the Vietnamese and world red books of endangered species. The park is part of the Kien Giang biosphere reserve, which was recognised as a World Biosphere Reserve by UNESCO in 2006.

The island was named as one of the 10 most beautiful Asian islands to visit in summer by tourism site www.topinspired.com.

"This peaceful tropical paradise is Vietnam's largest island, which has rapidly morphed from a sleepy island to a must-visit destination. It's still largely undeveloped as there is plenty of room for exploration. Dive the reefs, kayak in the bays or relax by lounging on the beach, indulging in a massage and dining on fresh seafood. It really is a perfect escape from reality and everyday life,” the site said.

Market for Tết gift hampers booms in HCM City

Tran Ngoc Mai of HCM City’s Binh Thanh District bought two Tet hampers at a supermarket in District 2 to gift her relatives for Lunar New Year, which falls on February 16 this year.

She said: “It used to take me much time to choose products, then pack them as gifts to give relatives for Tet. Nowadays, with various kinds of packed Tet gift baskets available at supermarkets and shops, I just need to pick gifts appropriate for my budget and the recipient.”

Understanding consumers’ tastes and market trends, which now favour quality products, retailers and businesses in the city have launched unique gift baskets with eye-catching designs.

According to retailers, shopping for Tet gift hampers has entered the peak season.

Some 10,000 gift hampers are sold every day at Co.opmart, Co.opXtra and Co.op Food, with those priced at VND800,000 (US$35.2) -1.2 million ($52.8) being the most popular.

This year Co.opmart and Co.opXtra are offering 46 different hampers in addition to customised ones.

They usually have beverages, bird’s nest drinks, sugar-coated fruits, confectionary, dried fish and meat, cheese, sausages and others.

Some also contain speciality agricultural products like dien grapefruits, canh orange, and cashew.

Those with milk products, oats and Co.op organic rice meeting US and EU organic standards are very popular, according to a Saigon Co.op spokesperson.

Saigon Co.op marketing director Do Quoc Huy said Co.opmart, Co.opXtra and Co.op Food have gift hampers with organic products at VND369,000-699,000 to offer customers more choice as well as to promote the products.

South Korean supermarket chain Lotte Mart is selling 22 kinds of gift hampers based on various themes at prices ranging from VND68,600-1.25 million, with sales going up significantly day by day.

Big C supermarket has 33 kinds of hampers at prices ranging from VND79,000 - 2 million, with those costing VND300,000- VND600,000 being the top sellers.

Retailers are also offering free packaging to customers who want to choose products to put in gift hampers.

Many shops at traditional markets like Tan Dinh, Thi Nghe and Ba Chieu are also displaying various kinds of hampers.

Nguyen Thi Be Tu, a trader at Thi Nghe Market, said hamper sales have surged recently.

“Apart from hampers, customers also want to buy individual items they want to gift and my shop packs the gifts for them.”

Offers of hampers are also flooding shopping websites these days, but experts warned, as always when buying online, caveat emptor.

Farm co-operatives and organic agricultural producers have introduced many gift hampers this year.

Anh Dao Co-operative in Lam Dong Province, for instance, which grows fruits and vegetables to VietGap and Global standards, is selling 20 kinds of fresh and dried fruit and vegetable hampers.

Nguyen Huynh Trang, deputy director of the HCM City Department of Industry and Trade, said his department has kept a close eye on prices in the market.

Companies can easily meet the demand for goods during the country’s biggest festival this year since supply is abundant and prices are under the closest supervision ever, she said.

There will be no shortage of goods or sudden price surges during Tet, while quality would be strictly controlled, she promised. 

Tet fair begins in HCM City     

The 2018 Happy Tet Fair showcasing high-quality Vietnamese and international products opened on Wednesday at the Sai Gon Exhibition and Convention Centre in HCM City’s District 7.

The five-day event has 300 booths with products such as confectionary, food and beverages, decorative items, cosmetics, perfumes, household appliances, handicrafts, textiles and garments with discounts of 30-50 per cent.

Several amusement activities are also scheduled, including fashion shows, photo booths, food corners, and traditional games.

The fair is meant to offer entertainment and shopping for locals and expats before Tet (Lunar New Year), Thuong My An, general director of Sai Gon Exhibition and Convention Joint Venture Company, the fair’s organiser, said.

Participating enterprises get incentives to ensure they keep their prices reasonable, she said.

The fair is expected to attract more than 40,000 visitors.

Tien Giang asks for enhanced protection for star apples brand exported to US     

The southern province of Tien Giang has proposed that the management overseeing the quality of star apples exported to the United States (US) be enhanced. This will help protect the fruit’s brand, as well as the prestige of Vietnamese agricultural products.

After getting a green light from the US Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) for the export of star apples to the US in October, Tien Giang shipped dozens of tonnes of this fruit to this country, and received good responses from the US consumers initially. The first shipment arrived at the US in late December.

Still, the management overseeing the plantation and quality of star apples must be improved to protect the fruit brand, according to the province.

Thus, Tien Giang Province proposed to the ministry of Agriculture and Rural Development and the Ministry of Industry and Trade to enhance the market study and quality control of star apples exported to the US to provide market updates and orientation to exporting firms.

The province said, as of mid-January, four companies registered a code for exporting star apples to the US.

Tien Giang has the largest area of some 3,100ha to grow star apples in Viet Nam.

Viet Nam has some 5,000ha of star apples with an annual output of more than 60,000 tonnes.

This type of fruit was mainly sold in the domestic market and exported to China and the ASEAN markets.

Exporting to the US marked a breakthrough, as this is a strict market with high quality requirements.

Besides star apples, Viet Nam has exported dragon fruit, rambutan, lychee and longhan to the US.

Techcombank posted US$352 million pre-tax profit     

Viet Nam Technological and Commercial Joint Stock Bank (Techcombank) reported a pre-tax profit of more than VND8 trillion (US$352 million) in 2017.

Techcombank took the fifth position in terms of highest profit in the banking sector.

This has been the third consecutive year in which Techcombank’s pre-tax profit doubled that of the previous year in the 2015-17 period. Each employee at the bank created VND1 billion of profit last year.

The bank on Tuesday announced that it totally resolved its bad debts sold to Viet Nam Asset Management Company (VAMC) in 2013. Its return on equity (ROE) in 2017 surged by 30.7 per cent from the previous year, while return on asset (ROA) also continued to increase by 2.69 per cent.

The capital adequacy ratio (CAR) last year was at 12.68 per cent, which was much higher than the stipulated 9 per cent level of the central bank.

The bank’s total outstanding loans by the end of last year were VND181 trillion, posting a 15.9 per cent year-on-year increase.

Ngo Hoang Ha, deputy director of the Techcombank’s financial department, said with the results, the market has recognised the bank with the highest profitability index.

“The indices have not only been high in comparison with the avarage level of Vietnamese banking system, but also with other regional countries’ level," Ha said.

Le Thi Bich Phuong, director of the bank’s retail department, said 2017 was a successful year for Techcombank. The bank disbursed some VND26 trillion in the primary real estate market, accounting for 20 per cent of the total market.

She said Techcombank is focused on a customer-centred strategy. The bank officials also said they would collect opinions from shareholders for listing on the stock exchange in 2018.

Last year, it was voted by The Asian Banker as the top two banks in Viet Nam with long-term profitability. It was also ranked by Standard & Poor as one of the leading private banks in Viet Nam.

Techcombank has striven to become one of the leading banks in Viet Nam in 2020. 

Interest rates fall in G-bond and inter-bank markets     

Interest rates in inter-bank and G-bond markets have declined significantly despite rising capital demands ahead of Tet (Lunar New Year), the country’s biggest holiday season.

Reports of the Maritime Bank’s economic research division showed that interest rates of loans in dong reduced 0.25-0.50 percentage points in all terms last week to 1.58 per cent for overnight loans, 1.73 per cent for one-week loans, 2.13 per cent for two-week loans and 3.70 per cent for one-month loans.

This is different from the previous years when the interest rates often rose significantly few weeks ahead of Tet, which saw rising demand for capital for shopping and other payments. For example, ahead of Tet last year, inter-bank rates surpassed 2 per cent for overnight and one-week loans.

The past week also saw a growing investment in G-bonds as investors bought all VND3.5 trillion (US$154.18 million), of which VND2 trillion were 10-year G-bonds and VND1.5 trillion were 15-year G-bonds.

Yields of the bonds dropped sharply by 0.52-0.70 percentage points to 4.38 per cent for 10-year G-bonds and 4.5 per cent for 15-year G-bonds.

Minh Phu Seafood earns $35m pre-tax profit     

Minh Phu Seafood Corporation (MPC) recorded a pre-tax profit of VND800 billion (US$35 million) last year, 24 per cent higher than the year’s plan, online newspaper nguoiduatin.vn reported.

During the reviewed period, MPC reached over VND21.42 trillion of net revenue and VND15.85 trillion of export turnover, a year-on-year increase of 30 per cent.

Specifically, Minh Phu Ca Mau Factory, the leading unit in the system of nearly 20 companies of the corporation, recorded revenue of nearly VND11.67 trillion, pre-tax profit of VND566 billion and export turnover of over VND7.57 trillion.

Minh Phu Hau Giang Factory posted VND9.76 trillion of revenue, VND226 billion of pre-tax profit and over VND8.25 billion of export turnover.

This year, MPC targets to export 63,000 tonnes of shrimp and to hit an export turnover of $800 million.

Speaking at a recent conference to summarise the group’s business results, Le Van Quang, chairman of MPC, said if the group maintains the same growth rate as 2017 with an export turnover of around $700 million, the target of hitting $1 billion export turnover is reachable.

Founded in 1992, MPC is not only known as “the King of Shrimp” in Viet Nam, but is also among the leading shrimp exporters in the world.

On October 2017, MPC officially listed its stock on the Unlisted Public Company Market (UPCoM) after two years, voluntarily delisting from the HCM City Stock Exchange (HoSE).

The group plans to organise the annual shareholders’ meeting on March 10.

Hoa Phat eyes 100 trillion VND revenue by 2020

Hoa Phat Group (HPG) said it hopes to earn more than 100 trillion VND (4.4 billion USD) in revenue by 2020, the year the Hoa Phat Dung Quat iron and steel production complex is expected to become fully operational.

Earning this amount of revenue will mean HPG contributes some 10 trillion VND (440 million USD) to the State budget.

The Hoa Phat Dung Quat iron and steel production complex, based in the central province of Quang Ngai, is expected to cost 52 trillion VND (2.2 billion USD) and have annual capacity of 4.5 million tonnes.

The project will use state-of-the-art technologies provided by the Netherlands, Italy and Germany.

HPG plans to allocate 30 percent of the project’s investment capital to environmental components. Once completed, the project is hoped to lift the group to among the world’s top 50 steel producers.

In 2017, the group earned 46.8 trillion VND (2.05 billion USD), up 38 percent from 2016, and hit a record post-tax profit of 8 trillion VND (351 million USD), surpassing its target by 33 percent, up 21 percent year on year.

Over the past ten years, subsidiaries of HPG have contributed more than 20 trillion VND (878 million USD) to the State budget, equivalent to the amount of the central province of Quang Nam, one of the nation’s top 10 contributing provinces.

HCM City’s industrial production index rises 15.04% in January

Ho Chi Minh City’s industrial production index (IIP) in January 2018 rose 15.04% compared to the same period last year.

The outcome was attributed to the city’s implementation of policies and programmes to support businesses to invest in the field of industry and supporting industry, according to the municipal People’s Committee.

As this year’s traditional Lunar New Year falls in February, enterprises have proactively mapped out plans for goods production and storage since December 2017 to ensure sufficient supply during the holiday. 

Four key industries, namely mechanical manufacturing, electronics, chemicals-rubber-plastic, and food processing, continued to expand markets and increase investments in new equipment to produce high-quality and competitive products. The move helped the industries to record an annual growth of 19.6%, higher than the average level of the whole industrial sector.

Particularly, the food processing industry recorded year-on-year growth of 29% while the electronics-information technology sector rose by 22.85%.

Director of the municipal Department of Planning and Investment Su Ngoc Anh said the rapid technological development helped the electronics industry create more products at competitive prices.

Some enterprises in the city are providing spare parts for the RoK’s Samsung Company, he said.

In February, the municipal Department of Industry and Trade will continue coordinating with relevant agencies to prevent counterfeit and low-quality products.

Decree allows zero-rate loans for under-special control credit institutions     

The State Bank of Viet Nam (SBV) issued a decree allowing special loans at zero per cent interest rates for credit institutions which were placed under the SBV’s special control.

According to the decree which came into force early this week, SBV, Deposit Insurance of Viet Nam, Co-operative Bank of Viet Nam and other credit institutions could provide zero-rate loans to institutions under special control.

The special loans are aimed at providing liquidity support for credit institutions when they are in danger of losing solvency or of going into insolvency and posing a threat to the system stability during the time they were placed under the SBV’s special control.

The central bank could provide special lending to support banks which were transferred compulsorily (including three banks that SBV bought at zero dong a few years ago).

The provision of special lending by SBV at a zero interest rate would be decided by the Prime Minister.

The special loans would only be used to pay deposits of individual depositors at credit institutions. Other purposes must be agreed upon by the governor of the central bank.

The maximum term for special loans is two years.

The decree also allows SBV to transfer refinancing loans to special loans in certain cases.