Starbucks launches summer promotion     

Starbucks has launched a summer promotion that offers a 30 per cent discount on sweets with the purchase of any iced drink.

The programme applies between 2pm and 5pm everyday.

Customers will also get one free for every five purchases of summer drinks.

The US coffee chain is rolling out new drinks for the summer.

“We experiment with different combinations of flavors to create new sensory experiences,” Patricia Marques, general manager of Starbucks Vietnam, said.

“The striking layers, textures and flavors make each Starbucks frappuccino distinctive,” said. 

215 local firms part of Samsung’s supply chain 

The number of local firms that are part of the supply chain for Samsung’s plants in Viet Nam has increased dramatically to a total of 215 vendors.

This includes 25 tier-1 vendors and 190 tier-2 vendors, all of whom supply to Samsung’s various factories such as Samsung Electronics Viet Nam (SEV), Samsung Electronics Viet Nam Thai Nguyen (SEVT), Samsung Electronics HCM City Complex (SEHC), Samsung Display Viet Nam, Samsung SDI Viet Nam and Samsung Electro-Mechanics Viet Nam.

It is expected that Samsung’s tier-1 vendors will increase to 29 in 2017.

Samsung Viet Nam has also recorded breakthrough figures in raising the localisation rate of its products, from 35 per cent in 2014 to 57 per cent now.

The information was released on Tuesday during a survey visit made by Samsung Viet Nam’s board of directors at three enterprises - Thanh Long Electronic Production JSC, Hanel Plastics JSC, and Viet Nam HTMP Mechanical Co . Ltd . - that are participating in their consultation programme by experts from Samsung South Korea. The assessment is part of a 12-week programme designed to strengthen the capacity of Vietnamese businesses that are part of Samsung’s components and accessories supply chain.

During the first two weeks, the experts survey and assess these enterprises and then for the next 10 weeks, they work interview and work directly with these businesses to improve their production processes and ensure they fulfil Samsung’s products and components standards.

The programme feedback has been positive, helping businesses improve production and capacity as well as become more well-rounded.

Take the case of Thanh Long Electronic Production JSC, which is SEHC’s tier-2 vendor and the only local enterprise in the Samsung ecosystem in Viet Nam to supply electronic PCB boards, a sophisticated, hi-tech electronic component. After three months of the consultation programme, its Final Quality Control rate has dropped 68.5 per cent, equipment operating rate has increased 23.8 per cent and inventory cost has fallen by 28.6 per cent.

The consultation programme is Samsung’s response to the Vietnamese Government’s call to increase localisation rate and the involvement of local businesses in Samsung’s component supply chain.

In 2017, Samsung is expected to offer consultation to 12 local supply enterprises, increasing the total number of businesses that have undergone the programme to 26 since 2015. The priority is on supporting businesses in the technical sector, and expanding the scope of consultation to domestic partner companies.

“Samsung’s consultation model is not only for its supply vendors, but also aimed for the development of potential support industry enterprises in Viet Nam in general. We hope to help Viet Nam’s support industry develop further,” Hwan said. “To make it effective, we expect to work more closely with associations and relevant departments of the Vietnamese government.”

After completing the consultation programme for the three businesses in the north, Samsung Viet Nam will take the programme to HCM City on Thursday for three enterprises: Viet Nhat PTE (wire harness), Viettronics Binh Hoa JSC (transformer), and Tien Thinh Co . Ltd . (copper-made wire).

IFC assists Vietnam with green textile production

The International Finance Corporation (IFC), a member of the World Bank Group, has helped Vietnamese garment-textile outsourcers save over 20 percent of water and energy consumption.

The information was released at a workshop reviewing the programme on enhancing resource-efficient consumption held by IFC in Ho Chi Minh City on June 21.

The sustainable production project has been carried out in 28 enterprises and factories nationwide doing outsourcing for VF Group and Target Group over the past 18 months, mostly in the stages of cutting, sewing, dyeing, printing and laundry.

The project, worth 9.9 million USD, applied measures to enhance resource-efficiency, saving 15 million USD for Vietnamese enterprises thanks to reducing water, energy, chemicals consumption.

Once implementing all recommendations under the project plus an additional investment of 26 million USD in new equipment, the targeted enterprises will save up to 2.8 million cubic metres of water and 562,000 tonnes of greenhouse gas per year in the next two years.

Kyle Kelhofer, Country Director of IFC for Vietnam, Cambodia and Laos, said the outcomes of the project in the first stage have proven economically efficient thanks to resource saving.

With fast growth in the nation’s economy as well as in the garment-textile sector, measures to enhance resource-efficiency in the garment and textile sector will open up important opportunities for Vietnam to boost sustainable growth in private sector, he said.

They will also help Vietnamese factories to save production cost while promoting resource-efficient consumption and sustainable development, he added.

IFC plans to work with other leading global brands to promote implementation of the programme in Vietnamese outsourcers.

The garment-textile sector is the second biggest earner of foreign currency of Vietnam, earning over 27 billion USD from export per year.

Quang Ninh’s GRDP growth sets five-year record

The gross regional domestic product (GRDP) of the northern province of Quang Ninh expanded by 9.6 percent in the first half of this year as compared with 9.2 percent in the same period last year. 

In the first quarter, the province’s GRDP grew 8.3 percent while the figure recorded in the second quarter was 10.7 percent, the fastest pace since 2012. 

With the performance, Quang Ninh has been listed as one of the leading cities and provinces in the northern key economic region and nationwide as well. 

Sectors posting the highest growth rate include services, 11.5 percent; industry and construction, 10 percent; and agriculture-forestry-fishery, 2.2 percent. 

In order to reach the target of a 10 percent growth rate, the province will focus on drastically instructing the implementation of socio-economic development tasks and solutions set for 2017. 

The locality will remove difficulties facing businesses, support star-ups, facilitate production and business and spur growth. At the same time, it will accelerate administrative reform and intensify investment, tourism and trade promotion in order to attract more resources for local socio-economic development. 

Located on the northern coast with advantages in location and natural resources, Quang Ninh is striving to tap its full potential in maritime economic development. 

As part of efforts to implement Resolution 09-NQ/TW on Vietnam’s Sea and Island Strategy until 2020, Quang Ninh has applied measures to boost its sea-based economy in line with ensuring national security and defence.

In recent years, the province has focused on building infrastructure to boost maritime economic development, especially tourism and aquaculture.

Currently, all seaports in Quang Ninh have been upgraded to strengthen their capacity in providing services and connecting the mainland and islands in the region.

Some seaports in the locality are being expanded to national and regional scale, including Hai Ha, Cai Lan and Cua Ong. 

Quang Ninh has also mobilised resources for the comprehensive development of infrastructure in coastal economic zones and industrial parks (IPs), including the Van Don EZ and Hai Ha, Dam Nha Mac, Viet Hung and Hai Yen IPs, attracting more investment.

Investment promotion activities have been used to call for investment in major projects, including Van Don airport, Van Tien bridge, major seaports and roads, as well as other projects in entertainment, resorts, aquaculture and fishing.

The province has built four concentrated IPs with a total area of more than 911 hectares, along with nine district-level industrial clusters spanning from Dong Trieu, Uong Bi, Yen Hung to Hai Ha and Mong Cai, with a combined area of 215 hectares. Three of the industrial clusters have leased 80 percent of their lands.

Meanwhile, the province aims to welcome 8-10 million visitors in 2020 to earn 5-6 trillion VND.

In 2016, Quang Ninh welcomed 8.3 million tourist arrivals, a year-on-year increase of 7 percent, earned over 13 trillion VND (571 million USD) in revenue, up 23 percent, according to the provincial Department of Tourism. 

By 2020, the province aims to serve 15-16 million tourists, including seven million foreigners, and rake in 30-40 trillion VND (1.3-1.7 billion USD) in revenue. The tourism sector is expected to contribute 14-15 percent to the gross regional domestic product (GRDP).

RON92 petrol price dropped by 862 VND per litre

The price of RON 92 declined by 862 VND per litre to 16,504 VND (0.72 USD) from 3:00pm on June 20 as decided by the Ministry of Industry and Trade and the Ministry of Finance.

The price of E5 bio-petrol was also cut by 805 VND per litre, diesel 0.05S by 650 VND per litre, and kerosene by 738 VND per litre.

Therefore, the ceiling prices of E5 bio-petrol, diesel 0.05S and kerosene are 16,349 VND (0.71 USD), 12,835 VND (0.56 USD) and 11,380 VND (0.5 USD), respectively.

Petrol prices have been reduced six times with a total decline of 2,162 VND per litre so far this year. Meanwhile, there were three hikes with increase of about 1,150 VND per litre. 

The average global price of petrol products during the last 15 days to June 20 was at 58,117 USD per barrel for RON 92 and 57,736 USD for diesel.

The prices of petrol and oil are adjusted every 15 days by the two ministries depending on changes in the world market.

Quang Ninh promotes sustainable tourism development

Being favoured by nature with a range of stunning landscapes, clear turquoise sea and spectacular limestone pillars together with numerous tourism investment projects, the northeastern province of Quang Ninh boasts huge potential to develop sustainable green tourism.

Quang Ninh has a coastline of more than 250 kilometres and over 2,000 islets which account for two-thirds of the total number in Vietnam. The spectacular stretch of coast connects the UNESCO-recognised World Heritage Site of Ha Long Bay with majestic natural scenery, Bai Tu Long Bay, Van Don and Co To islands and Tra Co beach with Cat Ba National Park in the northern port city of Hai Phong.

Ha Long Bay, Cat Ba island and Do Son beach (Hai Phong city) are prioritised to develop into national tourism sites. 

Along with the renowned Ha Long Bay, Quan Lan, Minh Chau, Ngoc Vung, Dai beaches in Van Don island district and Tra Co and Vinh Thuc in Mong Cai city have grown in stature among domestic and international tourists thanks to their breathtaking sea and coral reef.

Advantages in terms of geographic location, terrain and natural resources have turned Quang Ninh into a magnet for investors. Since the end of 2013, the province has attracted more than100 projects with total investment of 5.5 billion USD, most of which have been poured into tourism.

Tuan Chau Group splashed out nearly 50 trillion VND (2.2 billion USD) to develop Tuan Chau Marina - Vietnam’s largest port, entertainment zones, villas, coastal four-star hotels and a golf course, among others.

Vietnam’s leading real estate developer Vingroup’s Vincom Centre Ha Long shopping mall and high-end Vinpearl Ha Long Bay Resort were put into operation. The group also invested over 12 trillion VND (528 million USD) on a 68-hectare tourism resort and new urban area.

Sun Group and FLC Group are also helping give a facelift to Quang Ninh with opulent tourism resorts, a golf course, entertainment complexes and a cable car system.

In addition, the province has been juiced up with big foreign investment projects from the US, China, Thailand and the UAE. Renowned names like Wyndham, Starwood, ISC Corp, Amata and Nakheel have come to the locality to develop tourism infrastructure.

According to Trinh Dang Thanh, Vice Director of the provincial Department of Tourism, the province prefers projects promoting sustainable green tourism and protecting natural landscapes.

In its development plan, Quang Ninh province is calling investments in 14 large eco-tourism property projects during 2016-2020 to branch out four key tourism sites: Ha Long, Mong Cai-Tra Co, Van Don-Co To, Uong Bi-Dong Trieu- Quang Yen.

Comprehensive planning and spot-on stance on investment attraction will be the key to balancing economic benefits and natural resource protection in Quang Ninh province.

By 2020, Quang Ninh aims to welcome 15-16 million tourists, including seven million foreigners, and rake in 30-40 trillion VND (1.3-1.7 billion USD) in revenue. The tourism sector is expected to contribute 14-15 percent to the gross regional domestic product (GRDP). 

 In 2016, Quang Ninh welcomes 8.3 million tourist arrivals, a year-on-year increase of seven percent, and earned over 13 trillion VND (571 million USD) in revenue, up 23 percent, according to the Quang Ninh Department of Tourism. 

Particularly, Ha Long welcomed 6.3 million tourists and grossed 7.7 trillion VND (over 338 million USD) in revenue, representing respective increases of 14 percent and 65 percent from the previous year. About 2.7 million of the visitors were foreigners, a year-on-year growth of 16 percent. 

BIM Group’s condotel project in Phú Qu?c nearing completion

InterContinental Phú Qu?c Long Beach Resort & Residences is nearing completion with more than 70 per cent of the construction completed, offering valuable investment opportunities in the island.

Phú Qu?c Island, off coast of Kiên Giang Province, has arisen to be a land for property investments with a number of projects under construction.

However, most projects are at the early stage, and it is difficult for buyers to imagine what the project would be like when completed. In addition to these, it would imply risks regarding quality and progress.

That makes InterContinental Phú Qu?c Long Beach Resort & Residences a heat wave in Phú Qu?c Island’s Property Market.

Now, the model apartment of InterContinental Phú Qu?c Long Beach Resort & Residences is already completed, and three-fourth of the construction finished.

Another advantage is the assured quality by one of the world’s leading hotel operator InterContinental Hotels Group (IHG) with 70 experiences. InterContinental Hotels & Resorts is a luxury brand of IHG with more than 180 hotels in 65 countries and territories world-wide.

The policy of revenue sharing of 40 per cent and a guaranteed profit of at least 9 per cent in nine years are also among the attractive factors in the project.

Phú Qu?c Island with 150-kilometre long coastline has been a magnet for investment, as travelling to this island is becoming easier than ever. It takes only several hours of flight from major cities in the region such as Singapore, Bangkok and HCM City.

The potential of Phú Qu?c tourism remains largely untapped, especially with the Government’s policies of making the island a special economic zone.

VP Bank to host “Enterprises connecting day”

Vi?t Nam Prosperity Joint-Stock Commercial Bank (VPBank), in collaboration with the Vi?t Nam Chamber of Commerce and Industry (VCCI), is planning to organise “Enterprises Connecting Day.”

The event will be held in the beginning of July in Hà N?i and HCM City.

The event, designed for small- and medium-sized enterprises (SMEs), is considered one of the opening activities of VPBank’s corporate promotional campaign in 2017.

This event intends to draw the participation of some 400 enterprises in the fields of transportation, warehousing, commerce and light industry, and consumer goods, as well as agriculture, forestry and fisheries, information technology and pharmaceuticals, along with medical equipment, education and training.

At the event, experts from VCCI will provide updated information on SME’s law, which was recently approved by the National Assembly on June 12.

In addition, Clever Advertising Corporation (Clever Ads), senior partner of Google in Vi?t Nam, will provide basic knowledge about small business advertisement, an aspect which almost all small businesses are yet to invest in.

The organisers are also offering advertising funds to help small businesses directly experience the effectiveness of advertising and a lucky draw programme to provide attractive benefits to all participating businesses.

Each venue will have a display space for products and services for the 54 fastest-registered businesses.

Head of VPBank’s SME Department said the second quarter was the peak period because businesses needed to mobilise all resources to implement key goals in the year. The provision of capital solutions would be an opportunity for enterprises to quickly overcome difficulties they were facing to develop dynamically.

Notably, VPBank’s VNÐ5 billion (US$220 million) mortgage-backed financing programme is considered the key to the problem of loan borrowing, helping small businesses access capital easily through a variety of favourable criteria, such as no collateral requirement, no minimum revenue binding, no limit in the number of years of establishment and simple capital use profile.

VietinBank Securities moves from Ha Noi to HCM City stock exchange     

More than 90.42 million shares of VietinBank Securities Joint Stock Company were listed on June 20 on the Ho Chi Minh Stock Exchange after the company decided to move from the Ha Noi Stock Exchange (HNX).

Its reference price had been set at VND10,950 (US$0.48).

The 2017 shareholders meeting approved the plan for the move from the HNX.

Khong Phan Duc, the company’s general director, said after eight years on the HNX, the move to HOSE is meant to better protect shareholders’ benefits and improve liquidity.

Besides, the company believes that a HOSE listing would create growth momentum and enable development of its brand, he said.

Also with effect from June 20 the company changed its abbreviated name from VietinBankSc to VietinBank Securities, and its logo and colours to match those of VietinBank, its parent company.

In the first half of this year the company achieved pre-tax profit of over VND70 billion ($3.08 million). It has set itself a full-year target of VND131.88 billion, up 30 per cent from 2016.

It is set to pay a dividend of 8 per cent for 2016.

VietinBank Securities, established in 2000, has a chartered capital of over VND904 billion, among the top 10 in the industry. 

Insurance sector revenue grows 19%     

The insurance sector reported growth of 19 per cent in premium income in the first five months of this year, topping VND38.7 trillion (US$1.7 billion), the Insurance Association of Viet Nam (IAV) said.

Of the estimate, revenue from non-life insurance premiums was estimated at VND15.9 trillion, increasing 9 per cent year-on-year. Revenue from life insurance touched VND22.7 trillion, up by 30 per cent year-on-year, Bui Gia Anh, IAV general secretary, told a meeting on Monday.

The total assets of insurers also rose 19.5 per cent yearly to total over VND250 trillion, of which the assets of non-life insurers reached VND66 trillion and the assets of life insurers hit more than VND190 trillion.

According to Gia Anh, insurance enterprises accumulated nearly VND209 trillion to reinvest in the market, up 21.3 per cent over the same period in 2016. In particular, non-life insurers reinvested VND35.1 trillion and life insurers reinvested 173.8 trillion.

During the first five months, total insurance indemnity and benefit payments totalled VND10.9 trillion, of which non-life insurers indemnified VND5.4 trillion and life insurers paid VND5.5 trillion.

As of May 2017, insurance companies contributed to set up 56 transport infrastructure projects worth VND79 billion. These projects are being established to minimise traffic accidents in accident-prone areas.

In 2016, total premium income of the sector reached VND87.5 trillion, up 24 per cent year-on-year, of which non-life insurance companies gained nearly VND37 trillion, up 15 per cent, and life insurance companies earned VND50.4 trillion, up 32 per cent.

Trung Son hydropower puts fourth turbine into operation

The fourth and last turbine of the Trung Son hydropower plant in the central province of Thanh Hoa began generating electricity for the national grid on June 20, nearly two months after the launch of the third turbine, according to Electricity of Vietnam group.

The plant, located in Trung Son commune, Quan Hoa district, is Vietnam’s first hydropower project funded by credit loaned from the World Bank.

The project is invested by Trung Son Hydropower Co. Ltd, a subsidiary of the EVN Power Generation Corporation 2. The factory has four turbines with a combined capacity of 260 MW.

In full operation, the plant is expected to supply more than 1 billion kWh for the national grid each year and help control flooding in areas downstream the Ma River.

The project is also expected to contribute to local socio-economic development, poverty reduction while minimising environmental and social impacts.

Construction on the plant began in November 2012 and the first turbine was put into use in February.

ECC-HCM City, NEDO examine green hospital model

The Energy Conservation Centre in Ho Chi Minh City (ECC-HCMC) and the Japanese New Energy and Industrial Technology Development Organisation (NEDO) reviewed outcomes of a pilot project on green hospitals in Vietnam at a workshop in Ho Chi Minh City on June 20.

The project, conducted by the ECC-HCMC with support from several Japanese partners, aimed to contribute to low-carbon growth through boosting energy efficiency and environmental protection in Vietnam.

It was piloted at 115 People’s Hospital in Ho Chi Minh City and Hanoi’s Vietnam-Germany Hospital from 2014 – 2016.

Under the project, the 115 People’s Hospital, with newly-equipped environmentally-friendly facilities, saved 500,000kWh of electricity, equivalent to 740 million VND (32,560 USD) and reduced carbon dioxide emission by 310 tonnes per year. 

As for Vietnam-Germany Hospital, the figures were 830,000 kWh of electricity, equal to 1.2 billion VND (52,800 USD) and carbon dioxide emission reduction of 518 tonnes a year. 

It also helped process thoroughly discharged substances and toxics which could cause global warming and climate change.

It is likely that the model is expanded in Ho Chi Minh City, said Huynh Kim Tuoc, Director of ECC-HCMC, adding that the centre and the local health department will study further to implement the project in all hospitals in the city. 

Vietnam Airlines holds shareholders’ meeting in 2017

Vietnam Airlines held its annual shareholders’ meeting in Hanoi on June 20, reporting robust growth in its business performance in 2016 and detailing plans for 2017.

The national flag carrier described 2016 business growth as its best-ever achievement, informing shareholders that it operated nearly 140,000 safe flights, carrying more than 20.6 million passengers, respectively increasing by 13 percent and 21 percent, in 2016.

The firm earned over 2.6 trillion VND (114.4 million USD) in pre-tax profit, up 1.5 times from the previous year.

The post-tax profit allocated to Vietnam Airlines is nearly 1.74 trillion VND (76.56 million USD), 736.52 billion VND (32.4 million USD) of which will be given to shareholders as dividend payments. 

While labour productivity continued to grow in 2016, the carrier’s employees benefited from higher salaries, up 4.7 – 12.8 percent from a year before, Vietnam Airlines noted.

At the meeting, participants also approved a plan to offer an additional more than 191 million shares at 10,000 VND each for current shareholders.

This offering is expected to bring about over 1.91 trillion VND (84 million USD) for Vietnam Airlines to cover the purchase of Boeing 787-9 and Airbus A350-900 XWB airplanes and other business activities.

In 2017, the company aims to serve more than 22.5 million passengers and gain 87.9 trillion VND (nearly 3.87 billion USD) in consolidated revenue.

BASF launches new MasterEase admixture to support Vietnam’s construction sector

BASF launched MasterEase, an innovative admixture for low-viscosity concrete on June 20, to help customers in the northern region of Vietnam create durable, high-quality concrete structures faster and more easily.

This new generation of polymers improves the rheological properties of concrete and reduces plastic viscosity by up to 30 per cent. In addition, it reduces the time and workload needed to pump and place concrete slabs, speeding along construction works.

“Innovation is an important driver for our long-term growth. We collaborate with our customers to continuously work on new products and solutions as well as innovative technologies. With the launch of MasterEase, we are offering our most advanced and globally approved product in Vietnam to support our customers in overcoming construction challenges and realise the projects of their dreams,” said Le Doan Trinh, head of Construction Chemicals at BASF Vietnam. 

Concrete producers and users will benefit in many ways from the new technology, which is flexible and can be adapted to challenging situations, such as temperature and material variations. It is particularly suitable for concrete mixes designed and optimised for advanced engineering properties and sustainability.

High-strength concrete with low water/cement ratios, as well as mixes with higher levels of supplementary cementitious materials reduce the CO2 footprint. MasterEase makes it easier to produce and place these concrete mixes, helping engineers and developers to improve the sustainability ratings of their projects.

This admixture solution has been proven successful in a variety of landmark projects in Vietnam since its debut in Ho Chi Minh City a year ago. MasterEase is currently being applied, for example, in Coco Bay Resort in Danang and Ben Luc-Long Thanh Expressway.

Tanachart Ralsipirong, managing director of BASF Vietnam, said that, “As one of the fastest growing countries in the Asia-Pacific, Vietnam is an important market for BASF. As the country is developing and becomes increasingly urbanised, better infrastructure and quality, affordable housing are crucial. As a long-term partner of Vietnam, BASF can help address these issues with our solutions and technologies. 

The launch of MasterEase shows how we support the rapid growth of the Vietnamese construction industry.”

PM urges Vinatex reform

Prime Minister Nguyen Xuan Phuc has urged the Vietnam National Textile and Garment Group (Vinatex) to undertake comprehensive reform to develop its production and business.

The message was conveyed on June 20 to Vinatex by a working group led by Government Office Chairman Mai Tien Dung.

Dung, speaking at a working session with the group in Hanoi, said Vinatex had undergone many reforms and achieved developments in technology, management and jobs for 80,000 workers. However, the group had been experiencing difficulties in the export market since 2016.

Dung said the group must promote further production and business, especially exports, and report on its contribution to growth of the textile and garment industry’s gross domestic product (GDP), its reforms, use of technology and market development. Vinatex should also accelerate project investments and efficiency, he said.

Chinhphu.vn quoted Dung saying that “the textile and garment industry had done well in yarn and garment but had had difficulty in other stages, such as support industries and dyeing. So the industry must still import needles, thread and buttons.

“The group must accelerate projects with a total investment capital of VND5 trillion to put them into efficient operation and prevent projects with low efficiency and lost of capital.”

The group is also being tasked with accelerating equitisation of textile and garment enterprises, given that many textile and garment enterprises have had strong development in production and business, especially exports, after equitisation, such as Nha Be Garment and Viet Tien Garment. 

Vietnam’s garment products have entered markets with strict requirements and key export markets, such as the US, the EU, Japan and the Republic of Korea. However, local garment enterprises should undertake reform for traditional export markets, including China, Russia, India and ASEAN countries.

The PM is also asking the textile and garment industry to reform production technology, instead of processing, to create a higher value chain. The industry has applied new technologies for production and corporate management, but it should use technology suited to the industrial revolution 4.0, according to Dung.

And finally, the group is being told to promote internal administrative reform so that managers’ salaries are not so high and those of workers not so low.

Additionally, the Prime Minister asked the group and the Ministry of Industry and Trade to propose administrative reform to create favourable conditions for importing production material.

At the working session, Vinatex chairman Tran Quang Nghi said in the first half of this year, the industry increased exports by 10.6% in value to US$14.2 billion.

He said in the second half of this year, the export value was expected to remain stable and export value for the whole year was estimated to achieve a year-on-year growth of 10.9% to US$31.3 billion. This is higher than the group’s expected export value of US$2.78 billion.

Bac Giang exports over 9,500 tonnes of lychees to China

Bac Giang province, a lychee farming hub in north Vietnam, has shipped 9,500 tonnes of lychees to China via Lang Son and Lao Cai border gates so far this year.

China remains a traditional and important consumption market for Bac Giang lychees in 2017, according to the provincial Department of Industry and Trade.

Many traders in China have completed procedures to purchase Luc Ngan lychees. These traders together with the Vietnamese traders opened some 150 lychee selling points in China. A kilogramme of lychee sold in China fetches from 35,000-57,000 VND (1.54-2.5 USD).

About 40,000 tonnes of fresh lychees are expected to be shipped to China, representing 80 percent of this year’s lychee exports.

This year, Vietnamese lychees will be present at three new markets- the Middle East, Canada and Thailand for the first time. The first batch of lychees to Thailand was shipped on June 20. 

According to Tran Quang Tan, director of the provincial Department of Industry and Trade, Bac Giang lychees are cultivated in a concentrated lychee growing area, using VietGAP and GlobalGAP standards which ensure food safety and hygiene requirements.

The locality has so far this year sold more than 22,000 tonnes of lychees. Of the total amount, Tan Yen district sold over 12,000 tonnes, Luc Nam district 2,000 tonnes, Luc Ngan district 5,500 tonnes and Yen The 800 tonnes.

To promote Luc Ngan lychee, Bac Giang province organised the 2017 Luc Ngan-Bac Giang Lychee Week, which began at Big C Thang Long Supermarket in Hanoi last week.

VINPA supports petrol tax hikes proposed by MoF     

The Viet Nam Petroleum Association (VINPA) has sent a document to the Ministry of Finance (MoF) in support of the ministry’s proposal to increase the environmental protection tax on oil and gas consumption.

However, VINPA said the proposed increase from the current VND3,000 to VND8,000 per litre of petroleum was too high and instead suggested a rise to VND5,000 per litre. The association also proposed an environmental tax of VND3,000 on diesel (compared to the current VND1,500), an increase in the tax on aviation fuel from the current VND3,000 to VND5,000 per litre, and on mazut from VND900 to VND3,000 per kilo.

The association said the environmental protection tax on oil and gas consumption would ensure responsibility of organisations and individuals in protecting the environment while following the global integration process.

VINPA’s chairman Phan The Rue affirmed that the association’s proposed tax increase was suitable with the country’s economy, ensuring State budget collection and national energy security as well as the benefit to consumers.

MoF’s deputy minister Tran Xuan Ha said at the National Assembly (NA) meeting earlier this month that the increased level of the environmental protection tax would be decided by the NA’s Standing Committee.

Ha said the collection from the tax increase would restructure the State budget in the context of gradually reducing petroleum imports to zero.

In addition, petroleum prices in Viet Nam have been at the lowest level in comparison with countries with common borders. The tax hike therefore would be one possible solution to better manage petroleum trading and prevent smuggling. 

Seminar discusses improving product quality management

A seminar took place in Ho Chi Minh City on June 20 discussing the enforcement of Resolution No.19 and the reform of regulations on product quality management and food safety. 

The resolution, promulgated by the government on February 6, 2017, aims to improve the business climate and national competitiveness with orientations to 2020. 

Participants said firms could save 800 million USD annually if time for customs clearance is reduced by one day, and another 4 billion USD each year if logistics cost is cut by 1 percent. 

Several exporters voiced concern that they have not received sampling results for more than one year, making it hard for them to bring products onto the market. As of result, they have incurred losses and been left with high inventories. 

Responding to this matter, Nguyen Thi Mai Huong from the Directorate for Standards, Metrology and Quality suggested separating State management from quality assessment units’ activities and simplifying procedures for licensing certificates of conformity to imports, among others. 

She said it is necessary to reach a set of capacity standards for quality assessment units to avoid wastefulness.

The event was co-hosted by the Central Institute for Economic Management and the US Agency for International Development (USAID)’s Governance for Inclusive Growth program . 

Siemens presents digitalization technology for industrial value chains

Siemens has showcased digital solutions for the entire industrial value chain at the Vietnam Industrial & Manufacturing Fair (VIMF) 2017 held in southern Binh Duong province.

With the theme “On the Way to Industrie 4.0, Digitalization of the Entire Industrial Value Chain”, Siemens allowed visitors to explore in detail its range of automation and digitalization technologies across five processes: Product Design, Production Planning, Production Engineering, Production Execution, and Services. 

In the Product Design stage, the integration of CAD/CAM/CAE solutions with NX and Simcenter allowed visitors to gain a holistic view of NX for design (NX CAD), NX for manufacturing (NX CAM), and Simcenter, which consist of offerings that include 3D simulation and 1D simulation. Siemens’ Teamcenter software also provides the industry with a leading collaboration platform throughout all steps of the value chain with one single data backbone. 

In the Production Planning stage, visitors could experience a virtual validation of the production process through Tecnomatic and Teamcenter. Tecnomatic is the digital manufacturing solution from Siemens that helps end users make better decisions to increase productivity and quality while lowering costs.   

For Production Engineering, Siemens displayed a full product portfolio across control and field levels. In the control level, the SIMATIC PCS 7 Process Control System and the Totally Integrated Automation (TIA) Portal framework for complete automation were showcased. In the field level, Siemens displayed highly efficient and integrated drives and motors packages such as the SINAMICS V20 Basic Converter, the SINAMICS G120 Vector Drive, and the SINAMICS G120C Compact Vector Drive. Motor management, control, and protection systems were also introduced through SIMOCODE. 

Visitors also gained an overview of how all of these products and software work hand-in-hand through a massive application-based demonstration from Germany. From the PCS 7 process control system to the SCADA WinCC system, this integrated demonstration boasts Siemens’ full range of Digital Factory and Process Automation and Drives portfolio for the water and waste water industry. Through this presentation, Siemens showcased how customers could benefit from higher energy savings in their plants and telecontrol solutions with TIA Portal, where all components are linked through Industrial Ethernet, PROFINET and PROFIBUS DP. 

In the Production Execution stage, Siemens introduced MES (Manufacturing Execution System) and MOM (Manufacturing Operation Management), which help end users monitor and coordinate the entire production process. MOM is a holistic solution that provides full visibility into manufacturing processes in order to increase productivity. 

Service was the final stage set up on-site. In this step, Siemens introduced the new concept of Digital Services to the market through the use of MindSphere - Siemens Cloud for Industry. MindSphere provides fast and accurate data collection to the cloud. Siemens’ Digital Services include data recording, transmission and safe storage, and offer the framework for a development environment in which applications can be created swiftly.  

Nam Long announces partners in Mizuki Park project

Vietnamese real estate developer the Nam Long Investment Corporation held a ceremony on June 17 to announce the development partners for the 26-ha Mizuki Park project in Ho Chi Minh City’s District 7.

The project will be developed by Nam Long, Hankyu Realty from Osaka, Japan, and Nishi Nippon Railroad from Fukuoka.

Mizuki Park marks cooperation between Nam Long and two Japanese partners in both depth and breadth. Mizuki Park is the largest project ever to be invested by two Japanese investors with Nam Long, following three other successful projects: Fuji Residence, Kikyo Residence and Flora Sakura, and is not only supported by two Japanese partners in terms of capital, as in the previous projects, but also in terms of project management, design, and product development.

Prestigious domestic and international companies will be involved in architectural design, landscape design, and infrastructure at Mizuki Park. 

“Mizuki Park is a large-scale urban project where Nam Long will cooperate with the two Japanese investors,” said Mr. Chu Chee Kwang, CEO of Nam Long. “We were very thorough in selecting our project development partners. We conducted competitions to select and test the competence of each partner to ensure that work will be completed to the highest level to meet the needs of residents, as well as create an impressive step in Nam Long’s development roadmap.”

The project includes 4,676 affordable condominium units and 170 land plots, townhouses, and villas, with a wide range of facilities for quality lifestyles, such as a riverside road, a central canal and lake, sporting areas, restaurants, medical and education facilities (a clinic, a kindergarten, and a primary school), commercial centers (supermarkets and minimarts), a community garden, and a children’s playground.

Nam Long signed a strategic partnership agreement with the two Japanese investors two months ago, in which Nam Long holds 50 per cent. Total investment capital stands at more than $350 million.

Sales at Mizuki Park are expected to be opened in the third quarter of this year.

Export to U.S. forecast to face difficulties

Vietnam has been asked to explain the high trade surplus with the U.S. recently, which is forecast to make life more difficult for exporters in the nation, said Deputy Minister of Industry and Trade Do Thang Hai.

Deputy Minister Hai on June 19 cited the Vietnamese ambassador to the U.S. as saying that Vietnam will have to give an explanation in the next three days. There are 16 countries having hefty trade surpluses with the U.S., with Vietnam taking the sixth place.

Exports from Vietnam may encounter many difficulties because a large amount of Vietnamese goods are shipped to large markets such as Europe, Japan and the U.S., Hai added.

Data of the General Statistics Office of Vietnam shows that in the first five months of the year, the U.S. remained Vietnam’s largest importer with turnover growing 9.9% over the same period last year to US$16 billion, followed by Europe with US$14.6 billion and China with US$10.5 billion, respective rises of 9.5% and 40.3%.

Total export revenue in January-May grew 17.4% to US$79.3 billion.

Meanwhile, the statistics agency said China remained the biggest supplier of merchandise to Vietnam with US$22 billion in turnover in the first five months of the year, an increase of 15.7% against 2016. South Korea took the second position with US$18.6 billion, followed by Southeast Asian countries with US$11.1 billion, Japan with US$6.5 billion, Europe with US$4.6 billion and the U.S. with US$3.8 billion.

Thus, the U.S. saw a deficit of US$12.2 billion in trade with Vietnam in the first five months of 2017.

The deputy minister also mentioned the contribution of industry to gross domestic product (GDP) growth. The Industrial Production Index (IPI) grew 5.7% in January-May and is expected to go up to 8% in 2017.    

Aiming high or complacency?

Tourism has lately been touted as one of the country’s economic spearheads, given the strong growth of over 20% in both international arrivals and revenues.

Recognizing the country’s strengths so as to have proper measures to make the most of such strengths is a right thing to do, and that approach requires concerted efforts from all relevant agencies to bring those potentials into play. However, relying on the phenomenal growth in a certain period to project ambitious goals without proper steps to overcome the fundamental weaknesses might be a trap leading to complacency, which itself hinders development.

Minister of Culture, Sports and Tourism Nguyen Ngoc Thien, when answering the National Assembly last week, said Vietnam can still catch up with Thailand in the next 15 years, if the tourism growth is maintained at 20% a year while Thailand’s pace stays at 7%. Such an assertion is doubtful.

Vietnam’s tourism industry last year saw international arrivals exceeding ten million, while Thailand’s number is well over 32.5 million, which means a staggering development pace between the two countries.

Over the last six years, for instance, the number of foreign visitor arrivals in Thailand doubled, from 15.93 million in 2010 to over 32 million last year, which is a spectacular growth rate for a developed tourism market. Meanwhile, arrivals in Vietnam also doubled in the same time span, from five million in 2010 to ten million last year, but it is the high development rate from scratch.

In fact, Vietnam’s tourism currently still trails behind many regional rivals.

Data from the Vietnam National Administration for Tourism (VNAT) shows Thailand still tops the ASEAN ranking with 32.6 million international arrivals in 2016, followed by Malaysia with 26.8 million, Singapore with 16.4 million, and Indonesia with 12 million. Therefore, the number of ten million Vietnam boasts should not be any strong hint that the country can leapfrog other competitors to catch up with the leader, as regional countries have also been making steady progress.

At a certain stage of development, weaknesses will surface, hindering the growth tempo. And weaknesses in Vietnam’s tourism are numerous at that.

Big problems threatening the country’s sustainable tourism development include the lack of skilled manpower, less competitive tourism products, poor publicity, worsening environmental pollution, traffic nightmare, tourist harassment, and scams by vendors that discourage tourists from repeating their visits.

VNAT last week published a report on the global tourism competitiveness compiled by the World Economic Forum, giving major indicators of 136 countries. The 2017 index puts Vietnam’s overall ranking at 67 out of 136, but many indicators show worrying setbacks.

Apart from natural and cultural resources that take higher rankings, at 34th and 30th respectively, Vietnam’s environmental sustainability ranks 129th out of 136, tourism infrastructure at 113th, Government spending for tourism at 114th, and visa requirement at 116th among others. These are all hard nuts to crack.

Aiming high for tourism development is an encouraging sign, but to approach – let alone to realize - such an ambitious goal, the fundamental weaknesses cited above must be addressed first, and it requires strong commitment from all relevant bodies in the State machine, including a strong political commitment. There should be no place for complacency.

Discounts of over 50% disallowed: draft rule

Businesses are banned from offering discounts exceeding 50% of the prices of their goods and services, according to a draft prepared by the Ministry of Industry and Trade to amend Government Decree No. 37/2006/ND-CP.

However, they can offer discounts of up to 70% in trade promotion programs approved by the Government.

The ministry suggested the ceiling discount rate should not be applied to goods and services in price stabilization programs, fresh food products, and goods of businesses that become insolvent, or change locations or types of business.

The discount cap is said to cause difficulties for businesses in the context of a highly competitive market. Many enterprises want to sell off their goods, especially fashion goods or short life-cycle products, by launching big sales. Meanwhile, law enforcement agencies cannot oversee the implementation of such regulations.

Therefore, businesses and law enforcement agencies have many times suggested lifting the cap on discount rates. Many businesses have even dodged the law by not providing discount rates but offering zero-dong products to large orders.

Although the draft does not eliminate the cap on discounts, it allows businesses to offer discounts of up to 70% in certain discount programs that have specific durations (such as happy hours, sale day or monthly and seasonal sales) or trade promotion programs organized by Government agencies.

Compensation and resettlement split from Long Thanh airport project

The National Assembly (NA) on June 19 passed a resolution separating compensation, site clearance and resettlement from Long Thanh International Airport project to boost the pace of airport construction.

Resettlement and site clearance compensation for the project, including building infrastructure for two resettlement areas and a cemetery, will need over VND23 trillion (over US$1 billion). However, the amount allocated by the State budget for these components until 2020 is only VND5,000 billion, or 21.7% of the total need.

Chairman of the NA Economic Committee Vu Hong Thanh said before the NA approved the resolution that the Government would assign relevant agencies to conduct feasibility studies for those components and map out a site clearance plan to report to the NA.

Such studies will verify the capital need for each component and relevant issues which will be reported by the Prime Minister to the National Assembly, Thanh said. He said the construction of Long Thanh airport has become urgent now given rising overload at Tan Son Nhat International Airport.

“The overload at Tan Son Nhat International Airport and the increasing demand for air travel have made the Long Thanh International Airport project more vital,” Thanh told the NA.

However, because site clearance requires a lot of time and money, the NA Standing Committee agreed to separate site clearance, compensation and resettlement from the airport project and treat them as sub-projects to facilitate their implementation.

Long Thanh International Airport is a project of national importance, and will be able to handle 100 million passengers and five million tons of cargo a year when in full service.

The project is divided into three stages. In stage one, which is scheduled for completion in 2025, a runway and a passenger terminal along with other auxiliary facilities will be developed, with a capacity of 25 million passengers and 1.2 million tons of cargo a year.

The resolution helps create consistent policies for site clearance, compensation and resettlement for Long Thanh airport. Besides, one-time site clearance and resettlement for the whole project will help people in the areas affected by the project settle down soon.

The NA Standing Committee has required relevant agencies to effectively handle the areas to be cleared to avoid illegal encroachment, and enclose the plan of making use of free land with the feasibility study.

The Long Thanh International Airport project was approved by the NA in June 2015. Its total cost is estimated at VND336.6 trillion (US$16.03 billion), with the first stage requiring VND114.45 trillion.