Can Tho lures foreign investment in logistics

The Mekong Delta city of Can Tho wants to lure Singaporean and Japanese investment in the regional logistics centre in the city, a local official said at a meeting in July 19.

The centre, spanning over 242.2 hectares in the Cai Rang industrial park, includes ports, container areas, goods uploading and distribution and services areas, according to Nguyen Minh Toai, Director of the municipal Department of Industry and Trade.

The city plans to invite capable and experienced investors from Singapore or Japan to invest in the centre in order to facilitate goods transport from the Mekong Delta region to countries in the region and the world.

Vice Chairman of the municipal People’s Committee Truong Quang Hoai Nam urged the department and relevant bodies to build the centre based on the regional condition and potential.

It is necessary to identify key products, traffic system, delivery network while planning the logistics centre, thus proposing measures to lure investors, Nam said.

According to the approved nationwide logistics center system development plan by 2020 and orientations to 2030, the Mekong Delta region will have one regional logistics centre covering at least 30 hectares by 2020 and over 70 hectares by 2030.

It will serve Can Tho city, Tra Vnh, Hau Giang, Vinh Long, Kien Giang, Ca Mau, Bac Lieu, Soc Trang and An Giang provinces; connects with dry and river ports, airports, train and bus stations, IPs and border gates.

Vietnam, Guangdong, Hong Kong firms seek business opportunities

A seminar on economic and trade cooperation between Vietnam and Guangdong-Hong Kong (China) took place in Hanoi on July 19, attracting senior officials from 14 Vietnamese cities and provinces and nearly 200 businesses from both sides. 

Speaking at the ceremony, Deputy Foreign Minister Le Hoai Trung said China has been Vietnam’s largest trade partner over the past 13 consecutive years. Two-way trade hit 72 billion USD last year, or one fifth of Vietnam’s total exports. 

Last year, China was among top 10 foreign investors in Vietnam, ranking eighth with a total registered capital of 10.5 billion USD. 

Two-way trade between Vietnam and Guangdong and Hong Kong reached 17 billion USD and 6.09 billion USD, respectively. As of March 2017, Hong Kong was the sixth foreign investor in Vietnam with a total registered capital of 17 billion USD. 

Trung said with optimism that bilateral ties will keep thriving, given that the Vietnamese economy has maintained a growth of over 6 percent despite the global economic and financial crisis. 

According to the Deputy FM, Vietnam is gradually becoming an important link in the global value chain, particularly in the fields of electronics, garment, agriculture and fisheries. Meanwhile, Hong Kong is a significant gateway for Vietnamese goods to enter the Chinese market. 

Almost Vietnamese industries and sectors are strongly developing, from transport infrastructure, urban planning and development, energy, high-tech agriculture, machinery engineering to support industry. 

The Vietnamese government is determined to further step up reform and global integration. 

Commercial and Economic Counsellor at the Chinese embassy Hu Suo Jin hailed Guangdong’s high gross domestic product over the past 28 years and described Hong Kong as a major financial, trade and transportation centre of China. 

He said the Chinese embassy will continue serving as a bridge connecting the two countries’ businesses in the near future. 

A senior official from Guangdong province said Vietnam’s farm produce such as rice and fruits are popular in Guangdong while consumer goods such as footwear, apparel and electronics have also attracted Vietnamese consumers. Last year, Guangdong poured over 207 million USD into Vietnam. 

He added that the provincial authorities support An Duong industrial zone in Hai Phong, hoping that it will become a model industrial zone.

At the event, participating firms learned about business opportunities and market demand in each side.

EVN reports enough power to meet dry season demand

National power utility Electricity of Vietnam (EVN) said increased production and decreased transmission loss will allow it to meet power needs during this year’s dry season.

The utility announced on its website a first half production of 94.9 billion kW, a year-on-year increase of 7.23 percent.

Commercial electricity production increased 8.47 percent year-on-year to 82.9 billion kW, with domestic supply increasing by 8.78 percent over last year. The most productive day on June 2 saw a record 628.4 million kW generated at the maximum transmission capacity of 30,206 megawatts.

EVN affirmed that the company would supply sufficient electricity to meet demand across all regions and purposes. It also promised to generate enough to meet increased consumption in the 2017 dry season which saw a prolonged heat wave in the Northern and Central Highlands at the beginning of June.

The general trend is southward transmission, EVN noted, with electricity transmitted from the north to the Central Highlands and southern regions.

The highest recorded electricity transmission capacity on the 500 kilovolt southward line was 3,600 megawatts. On average, total transmitted amount was 79.95 billion kilowatts, an increase of 4.7 percent over 2016.

For the second half of 2017, EVN has set a production goal of 102.1 billion kW, in which commercial output including exports to Laos and Cambodia would reach 92.1 kW.

For 2010 to 2015, EVN spent 492 trillion VND (21.8 billion USD) on 34 power generators and many other projects that laid a total 13,100 kilometres of power lines.

The company expects power demand to increase 10 percent on a yearly basis, and plans to invest 710.6 trillion VND (31.3 billion USD) during the 2016-20 period.

Its official financial report for the year 2016 showed that total outstanding public debt was approximately 487 trillion VND (21.5 billion USD), up 7.1 percent over 2015.

The funds were borrowed to invest in numerous power plants in order to meet national demand, it said.

EVN’s Deputy Director General Dinh Quang Tri commented earlier this year that the company relied mainly on two financial sources, revenue power prices and “capital arrangements”.

Tri also said that each year, EVN would need between 5-6 billion USD, and with little support from the Government, the utility had been working with the World Bank on ways to raise funds.

He said the company hoped to raise enough funds next year from various sources including the issuance of international bonds.

EVN also reported an improvement in its power loss index at 7.25 percent for the past six months, 0.22 percent lower than the set target. It attributed this achievement to a concerted effort by the company’s numerous technology and operation departments, in order to minimise blackouts and risks within the national power grid.

In the first two quarters of 2017, EVN focused on enhancing customer service and improving the electricity accessibility index.

Since May 15, technical and administrative procedures have been minimised and all customers duly informed.

The company has also signed an agreement with the Vietnam Chamber of Commerce and Industry (VCCI) for the latter to perform regular surveys on and assessments of service quality.

Reliability indexes for EVN have increased significantly from last year. For the first six months of 2017, the System Average Interruption Duration Index reduced by 47 percent, the Momentary Average Interruption Frequency Index by 40.2 percent and the System Average Interruption Frequency Index by 47.6 percent.

EVN has worked closely with the Ministry of Agriculture and Rural Development and its Water Resources Department, as well as other operational agencies on managing hydroelectric reservoirs to supply water for irrigation purposes.

There are still three releases left for the spring summer crop in the Red River Delta this year.

Conference talks AEC opportunities for Vietnamese businesses

“ASEAN at 50: ASEAN Economic Community and the Opportunities for Vietnamese Businesses” is the theme of a conference held by the Foreign Ministry in Hanoi on July 19 to mark the 50th founding anniversary of the ten-member group (August 8). 

In his opening remarks, Assistant to the Foreign Minister Vu Quang Minh said the formation of the ASEAN Economic Community (AEC) marked a new step of integration of ASEAN economies, aiming to build an ASEAN economic space of connectivity, competitiveness, dynamism and innovation with people as the centre. 

He underlined the need for businesses to understand opportunities and challenges following the birth of the AEC. 

However, Minh said, only 16 percent of Vietnamese enterprises have knowledge about the community, adding that the conference will offer an opportunity for leaders, researchers and firms to seek ways to help the business circle bring into full play the opportunities and cope with the challenges. 

Prof. Hidetoshi Nishimura, President of the Economic Research Institute for ASEAN and East Asia (ERIA), said ASEAN has recorded great achievements over the past half a century, ensuring regional peace and stability. 

ASEAN is working hard to implement a single market and a production base, hence bringing opportunities to all of its member countries and residents, he said. 

Deputy Foreign Minister Nguyen Quoc Dung said ASEAN has become Vietnam’s second trade partner with an average growth rate of 14.5 percent over the past decade. 

Trade between Vietnam and ASEAN increased from about 19 billion USD in 2006 to 41.36 billion USD in 2016, he said, adding that ASEAN is Vietnam’s third largest market and third largest supplier of goods. 

ASEAN is also Vietnam’s important foreign direct investment provider with total registered capital of 64 billion USD and a bridge for multi-national companies based in ASEAN to invest in the country, the official said. 

ASEAN-invested projects in Vietnam mainly focus on production, processing and manufacturing, Dung said, stressing that ASEAN has become one of the impulses helping Vietnam maintain its sustainable economic growth rate. 

ASEAN Secretary General Le Luong Minh described ASEAN as an attractive destination for foreign investors and the world’s six largest economy with a population of 640 million.

He, however, pointed out an array of difficulties facing the group such as development gap between member countries and differences in development goals, laws, institutions and awareness of people and the business circle. 

Besides, the nations also face other problems like aging population, middle-income trap, inequality and non-traditional threats, Minh noted. 

He said since joining the group, Vietnam has stepped up cooperation with other member countries and participated more deeply in the global value chain, as reflected through its engagement in the Trans-Pacific Partnership (TPP) agreement, negotiations of the Regional Comprehensive Economic Partnership (RECP) agreement and signing of free trade agreements with the EU and the Eurasian Economic Union. 

Deputy Foreign Minister Dung said realising the AEC at a new development level is the task of Governments of ASEAN member countries as well as the business circle. 

Besides, it is necessary for the Governments to make all-out efforts to narrow development gaps within ASEAN as well as between ASEAN and other regions, promote economic integration to improve the group’s competitiveness and enhance infrastructure connectivity, he said. 

Dung emphasised the Vietnamese Government’s commitment to further renovating and reforming the economy, which, he said, has been demonstrated through its efforts to build a transparent and facilitating Government.

Coal sector aims to surpass yearly target

The Vietnam National Coal-Mineral Industries Holding Corporation Limited (Vinacomin) strives to sell over 36 million tonnes of coal in 2017, an increase of one million tonnes compared to 2016.

Of which, domestic coal consumption will be more than 34 million tonnes while the remaining 2 million tonnes are for export.

The group has signed trade contracts in 2017 with both domestic and foreign customers, as well as insurance and transportation agreements. It has also exchanged long-term coal export contracts with Japanese partners.

Minister of Industry and Trade Tran Tuan Anh said the ministry has proposed the Government remove difficulties for the coal industry, particularly issues relating to production costs and environmental fees, in order to make domestic coal prices more competitive in the market.

The ministry has created the best conditions for coal exports but some difficulties still lie ahead due to technical barriers from China, he said, adding that there would be a lot of changes in mechanisms and policies benefiting the coal sector, including the reduction of coal inventories.

In late 2016, the Government officially allowed Vinacomin to increase the export of high-quality coal in 2017-2020. 

This year, the group aims to export 2 million tonnes of coal at Vang Danh and Nam Mau coal mines, as well as sign trade contracts with many foreign partners.

Dong Nai disburses 428 million USD in FDI

Nearly 428 million USD in foreign direct investment (FDI) was disbursed in the southern province of Dong Nai since the beginning of this year, equivalent to 54 percent of its annual plan.

Mai Van Nhon, deputy head of the Management Board of Dong Nai Industrial Parks, said the prompt disbursement showed that investors have carefully studied the province’s business environment.

For example, the 30-million-USD project of the Plus One Sport Company has disbursed 19 million USD. Meanwhile, the SG Sagawa Limited Company has splashed out 12 million USD out of 20 million USD of its registered capital.

To handle the slow disbursement of some projects, the management board will increase monitoring over their progress. It will revoke licenses of projects that have failed to disburse investment and give land to other capable investors.

According to statistics released by the management board, Dong Nai province lured about 650 million USD in FDI in the first six months of the year, making up 65 percent of the annual target.

To date, there have been nearly 1,300 valid FDI projects in the province, worth more than 26 billion USD. They are mainly hi-tech, supporting industry and environmentally-friendly projects.

Exhibitions display latest electrical technology, equipment

Vietnam’s latest technology achievements in electricity and electrical equipment are being introduced at the 10th International Exhibition on Electrical Technology & Equipment (Vietnam ETE 2017) and the 7th International Exhibition on Products, Technologies of Energy Saving & Green Power 2017 (Enertec Expo 2017).

The event, jointly held by the Ho Chi Minh City Department of Industry and Trade, Ho Chi Minh Power Corporation and C.I.S Vietnam Advertising & Exhibition JSC, opened on July 19 in District 7.

The four-day exhibitions drew the participation of more than 170 businesses, including renowned enterprises like Ho Chi Minh City Power Company, LIOA, ABB, Panasonic, LS Vina, Tran Phu Electric Mechanical Company Limited, Dien Quang Lamp JSC and Megasun JSC. There are also hundreds of booths of enterprises from China, Italy, Japan, the Republic of Korea, Singapore, Turkey and Russia.

Vice Director of the municipal Department of Industry and Trade Nguyen Phuong Dong said that the Vietnam ETE 2017 and Enertec Expo 2017 aims to popularise energy-saving products and promote the use of green energy.

The events also create opportunities for domestic and foreign companies to enhance cooperation, expand business linkage and further trade promotion, he added.

Currently, Vietnamese mechanical companies are able to produce more than 90 percent of spare parts and key equipment for the national grid. Many local businesses have become credible partners of the world’s top groups. They are striving to boost export of electric equipment to Southeast Asian, South American and African markets.

According to Bui Thi Thanh An, Deputy Head of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, Vietnam has seen an increasing demand for power in production and daily activities. The country is carrying out solutions and programmes prioritising the development of renewable energy sources and smart electricity networks.

She said that the Vietnam ELTE 2017 and Enertec Expo 2017 have crucial roles in developing electricity sector.

Lao central provinces promote trade, tourism in HCM City

A conference calling for investment in the three central Lao provinces of Savannakhet, Bolykhamsay and Khammouane took place in Ho Chi Minh City on July 19.

Addressing the function, Vice Chairman of the municipal People’s Committee Le Thanh Liem stated Ho Chi Minh City considers Laos a strategic market with great potentials for investment, trade and tourism activities.

He urged local companies to study the Lao market and assist the country’s socio-economic growth.  

Liem asked authorities in the three provinces to facilitate the operation of foreign investors, including those from his city.

Holding strategic locations in Laos’ East-West economic corridor, Savannakhet, Bolykhamsay and Khammouane are offering preferential policies for foreign investors in advanced technology, processing of agricultural produce, eco-tourism, education, and health.

Savannakhet governor Santiphap Phomvihane noted Vietnam is the third biggest foreign investor in his province, with 24 projects worth 170 million USD.

The number of Vietnamese investors is on the rise, as is the scope of their investment sectors, he added.

Khammouane deputy governor Bunmy Phimmason said his province has potentials to develop the power and mining sectors, in addition to a convenient transport infrastructure.

Khammouane is committed to providing the most possible conditions for investors in terms of land sources and taxation, he stressed.

Leaders of the three province said they want enterprises from Ho Chi Minh City to organise regular trade promotion activities in their localities, contributing to sound collaboration between the two countries.

The conference was held by Ho Chi Minh City Investment and Trade Promotion Centre (ITPC). 

More than 30 firms in Ho Chi Minh City have so far channeled over 250 million USD into projects in Laos.

Vietnam eyes stronger cooperation with Chinese Guangdong

Bilateral trade between Vietnamese localities and Guangdong province of China reach 17 billion USD in 2016, up 2.9 percent compared to 2015, it was reported at a conference held in Hanoi on July 19.

The conference is a regular event to review cooperation between ministries, sectors and localities of Vietnam and Guangdong province. 

Address the event, Deputy Foreign Minister Le Hoai Trung stressed the Vietnamese Party and Government’s policy to enhance win-win collaboration with China in general and with Guangdong province in particular. 

He called on the two sides to maintain exchange of all-level visits to promote mutual understanding and trust; make the best use of cooperation mechanisms among their agencies; and boost links in economic-trade, investment, transport, agriculture, culture, education, and tourism.

The Deputy FM asked Guangdong to make it easier for Vietnamese goods, especially agro-forestry-aquaculture products; dairy products; and processed fruits to enter the Guangdong market, contributing to more balanced trade between the two countries. 

For his part, Vice Governor of Guangdong Lin Shao Chun affirmed Guangdong is willing to work with the Vietnamese side in implementing cooperative programmes signed between the two sides, towards stepping up the Vietnam-China comprehensive strategic cooperation. 

The Chinese locality hoped Vietnam’s agencies will consider preferential policies for the construction of An Duong industrial park in the northern port city of Hai Phong.

PM pushes central bank to achieve robust growth target

Prime Minister Nguyen Xuan Phuc has urged the State Bank of Vietnam (SBV) to take more comprehensive and bold measures to boost credit growth and reduce interest rates.

The message was communicated to the SBV on July 18 in Hanoi by a working group led by Minister, Chairman of the Government Office Mai Tien Dung, to push the central bank to help achieve the 6.7 percent economic growth targeted for this year.

Besides meeting the credit growth target of 18 percent in 2017, the PM required the SBV to better direct loans flowing into production, business and infrastructure to support firms, Dung said.

Dung said the PM pointed out that though the country had 110,000 newly established firms in 2016, and nearly 60,000 in the first half of this year, the number of firms that closed or stopped operations during these periods was high, because of difficulties in credit access, land and policies.

Interest rate cuts would help firms a lot, Dung said, estimating that with outstanding loans of the entire banking system standing at around 5 quadrillion VND (219.3 billion USD), a rate cut of 1 percentage point would help firms save 50 trillion VND; the State budget earn another 2 trillion VND from corporate income tax; and the GDP rise by 0.25 percent.

With domestic public debts of roughly 1 quadrillion VND, the same rate cut would also contribute to saving 10 trillion VND of the State budget, Dung added.

However, he said, to cut rates, the SBV must first focus on settling non-performing loans (NPLs).

“Interest rate cannot be cut unless NPLs are settled,” he said and ordered the SBV to issue guidelines soon to make it easier for credit institutions to sell secure loans and assets, based on the new resolution passed recently by the National Assembly on settling NPLs.

The PM has also asked the central bank to study and determine how to mobilise foreign currency from local people, and said the current zero percent interest rate policy for US dollar deposits would obviously not attract dollar holders to make bank deposits.

“Though the SBV’s aim is to curb dollarisation of the local economy, it must think about other measures to mobilise this idle capital as we still have to buy international bonds at interest rate of more than 4 percent,” Dung said.

He said Phuc had also instructed the SBV to better implement regulations in Circular 36/2014, which are aimed at settling cross-ownership among commercial banks. Though the issue is more under control since the circular took effect in 2015, there remain cross-ownership among banks. For example, Vietcombank still holds 7.16 percent of the charter capitals of Military Bank, 8.19 percent of Eximbank, 5.07 percent of SaigonBank and 4.3 percent of OCB’s charter capital, lower ratio compared to 9.8 percent, 8.2 percent, 5.26 percent and 4.6 percent in 2014, respectively.

Finally, the SBV must also strengthen security for internet banking services. “We are encouraging local people to use other kinds of payment instead of cash in their daily lives, so security is very important. Otherwise, it will affect people’s trust on the banking system,” Dung said.

Aquatic, farm produce exports to Netherlands on the rise

Vietnam’s aquatic product exports to the Netherlands enjoyed a substantial jump of 15.4 percent to 101 million USD in the first half of the year, paving the way for the shipment growth in the European market.

The export of aquatic products to the western nation experienced a fall in 2015 and 2016. The recovery in the market will spur seafood consumption in the EU market after a steep decline due to issues related to exchange rates, economics and politics.

The Netherlands has been a stable import market of Vietnamese aquatic products as the country purchases not only for domestic consumption but also re-export to nations in the EU bloc, according to Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP).

Food safety and hygiene, and a free trade agreement between Vietnam and the EU which will take effect at the end of 2017 or the beginning of 2018 have prompted the EU countries to increase imports of Vietnamese aquatic products, particularly shrimps, VASEP said.

Vietnam’s cashew nut exports to the Netherlands also enjoyed a considerable hike in the first half of the year. The country sold 222.5 million USD worth of cashew nuts in the market, up 37.6 percent from the same period last year. The Netherlands became the second largest importer of Vietnamese cashew nuts, behind the US (543.3 million USD).

In his recent official visit to the Netherlands, Prime Minister Nguyen Xuan Phuc lauded the country’s support for the sustainable development of the Vietnamese food industry. On the occasion, Vietnam invited the Netherlands to attend the Vietnam International Food Industry Exhibition 2018 (Vietnam Foodexpo 2018) as an honourable guest.

Hoe said that the event will bring the images of Vietnamese foods, including aquatic products, closer to consumers in the Netherlands as well as other EU countries, especially those with high demand.

Thanh Hoa residents welcome non-stop flights to Bangkok

Many residents of the northern province of Thanh Hoa have embraced the welcome news that Vietravel will provide non-stop flights between the Thanh Hoa Airport and Bangkok.

The route will take one hour and a half each way and depart from the Thanh Hoa Airport four times weekly and cost US$202 (VND4.55 million) for a round trip ticket, reports the Vietnam News Agency.

As a special promotion relating to the launch of the new direct service, says the Vietnam news Agency, Vietravel has on offer a 5-day packaged tour for a limited time at just US$328 (VND7.4 million).

Tradincorp to trade on UPCoM on July 24

The HCM City Electric Power Trading Investment Corp (Tradincorp) will trade its 23.6 million shares on the Unlisted Public Company Market (UPCoM) on July 24.

According to Hà Nội Stock Exchange, which runs the UPCoM, Tradincorp’s shares will start trading at VNĐ11,000 per share under code THE.

Tradincorp was founded in September 2007 with registered charter capital of VNĐ450 billion (US$19.75 million).

The company was established by seven big shareholders, which operate in the power industry, including the EVN Southern Power Corporation, Sài Gòn Real Estate Corporation and Sài Gòn General Service Corporation.

Among those shareholders, the EVN Southern Power Corporation is the biggest shareholder of Tradincorp, holding seven million shares or 29.65 per cent of the company capital on March 20, 2017.

In 2016, Tradincorp earned a revenue of VNĐ252 billion, a yearly increase of 12.44 per cent and its pre-tax profit was more than VNĐ25 billion.

Tradincorp targets a revenue of VNĐ1 trillion by 2025, becoming a highly profitable firm in the power trading and production industry.

SSI Asset Management Company launches bond fund

Saigon Securities Inc Asset Management Company (SSIAM) is launching an initial public offering (IPO) for its SSI Bond Fund (SSIBF) from July 4 to 31.

The initial minimum capital mobilisation is VNĐ50 billion (US$2.2 million). The SSIBF will begin operating by mid-August.

The SSIBF is the third domestic exchange-traded fund (ETF) managed by SSIAM, after the open-end SSI Sustainable Competitive Advantage Fund (SSI-SCA) and the ETF SSIAM HNX30 Fund. It will adopt an active investment strategy based on comprehensive assessments of macroeconomic policy, economic outlook and financial status of issuers.

The investment portfolio of the SSIBF will be structured towards diversification, combining low-risk and high-risk assets to achieve long-term investment objectives, as well as to ensure financial security. Accordingly, the SSIBF will allocate a minimum investment of 80 per cent on bonds, certificates of deposit and fixed-income instruments, and a maximum investment of 20 per cent in shares, including listed stocks and stocks that are following the preparation process for listing.

SSIAM will flexibly take advantage of market opportunities to add value to the fund in the short term. Investors can also easily buy and sell the SSIBF Fund Certificate to the fund management company and earn profit during the investment period.

Managed by SSIAM’s experts, SSIBF will follow aggressive investment strategies.

The SSIBF’s supervising bank is the Bank for Investment and Development of Việt Nam (BIDV)’s Hà Thành branch, and its transfer agent is the Việt Nam Securities Depository (VSD).

SSIAM CEO Lê Thị Lệ Hằng said the bond fund is targeted at individuals and organisations who are looking to grow their long-term assets.

SSIBF is also an optimal choice for small-scale capital investors who want to allocate earnings to bonds and fixed-income assets, for investors who want an interest rate higher than deposits, but with easy liquidity, Hằng said.

“With a safe investment portfolio, we hope SSIBF will become the best option to help investors indirectly and effectively invest in assets such as government and corporate bonds,” she said.

Vietnam Airlines offers 20% discount on domestic flights

National carrier Vietnam Airlines is offering 20 per cent discount on domestic fares for the first 7,000 online customers, on the occasion of Vietnamese War Invalids’ and Martyrs’ Day.

The bookings must be done on the airline’s official website, www.vietnamairlines.com, using the promo code PR20TBLS277.

Discounted bookings will start on July 22 and continue till July 31. They will apply for domestic flights that depart between September 5 and December 28.

The national carrier operates 30 domestic flight routes across 16 destinations, and has good flight frequency, modern crew and four-star quality service.

New HCMC - Can Tho rail line under consideration

Authorities in Ho Chi Minh City are working with their counterparts in Mekong Delta provinces and especially those in the local hub of Can Tho city to review the construction of the Ho Chi Minh City - Can Tho railway line, which if approved would provide a significant boost to local development.

At speeds of 200 km/h, travel time on the new line would be shortened to 45 minutes from the three hours it now takes by road.

The line is expected to run parallel to National Highway No.1 and pass through a series of emerging urban areas that cover some 11,720 sq km and are home to 14 million people.

The project was originally aimed at alleviating the high transport demand on roads and waterways. It will also have a positive impact on the socioeconomic development of the two cities as well as neighboring provinces such as Long An, Tien Giang, and Vinh Long provinces.

Total investment is estimated about $5 billion and the line may be completed and opened by the end of 2024.

According to the Japan International Cooperation Agency (JICA), by 2030, the volume of passenger and freight transport from Ho Chi Minh City to Can Tho will increase 4.8-fold and three-fold compared to 2008. Ho Chi Minh City is the center of the southern key economic region while Can Tho is the center of the key economic region in the Mekong Delta. The new railway line would connect the two major centers and bolster economic development and national defense and security.

Japanese company buys 2.2% of Pizza 4P's

Chikaranomoto Holdings from Japan has announced it will cooperate with Pizza 4P’s to develop the Ippudo restaurant chain in Vietnam.

The Japanese company won agreement from Pizza 4P’s Director Mr. Yosuke Mashiko on pouring $445,000 into Pizza 4P’s to secure a holding of 2.2 per cent.

Chikaranomoto prices Pizza 4P’s at up to VND460 billion ($20.9 million), or nine-times higher than its charter capital of some VND51.5 billion ($2.3 million).

The first Ippudo outlet is expected to open in early 2018, specializing in ramen noodles, and it also plans to expand its ramen brand worldwide. 

Chikaranomoto Holdings now operates a ramen restaurant chain in Japan and elsewhere and produces and sells related products and services to restaurants. It has 16 subsidiaries and nine associates.

It has many brands in Japan, including Ippudo, Gogyo, and Bread Junction, and is also involved in business consulting for restaurants and franchise businesses. 

As at the end of June, Chikaranomoto had opened 69 stores in 12 countries and now prioritizes the Southeast Asian market. It has confirmed it will open more outlets in Vietnam.

The Pizza 4P’s chain was founded by Mr. Mashiko in 2011. Initial funding was only $100,000, from family savings. Mr. Mashiko now holds 80 per cent of Pizza 4P’s, with the remaining 20 per cent held by Seedcom. 

Bai Chay violating resort projects investigated

Local authorities in Quang Ninh City's Bai Chay Town have started an investigation into two stagnant resort projects which are accused of various violations and threatening the environment.

The construction of the Monaco Resort project in Bai Chay was started in 2004 but nothing has been done other than ground clearance. The inspectors also discovered various violations that badly affect the environment and lives of local residents. It is suspected that the investors are illegally dredging and selling the sand and soil to other real estate projects.

The locals said a hill with pine trees was almost destroyed and gravels keep falling down to the roads and into local houses.

Similarly, the Phuong Hoang hotel and villa complex project was approved in 2010 but the construction has been barely carried out. There are dozens of trucks quarrying rocks and destroying the scenery of Ha Long City.

The investors of both projects have been replaced many times for various violations to no avail and the state agencies continue giving permission and extending the schedules.

The provincial authorities were asked to investigate responsibilities of state officials who overseas and consult the projects. Investors were asked to quickly complete all documents and pledge that they would complete the projects on time. The investors must also publicise their progress at the construction site, cultural houses and on the streets so that local people can help monitor the projects.

If the investors of Monaco and Phuong Hoang projects fail to deal with violations and complete the documents by the second and third quarter 2018 respectively, the provincial authorities will withdraw the land.

Agro-forestry-fishery exports target 35 billion USD next year

 The agricultural sector will aim for a GDP growth rate of between 3 – 3.1 percent and total export value of agro-forestry-fisheries at 34 – 35 billion USD in 2018.

Minister of Agriculture and Rural Development Nguyen Xuan Cuong recently ordered his ministry’s subordinate agencies and localities to step up making development plans for the sector and each field in 2018 towards achieving the overall goals.

Other targets for 2018 include an increase of 3.3 – 3.5 percent in production value of the whole agricultural sector, a forest coverage of 41.6 percent, and 37 percent of all communes recognised as new-style rural areas.

Regarding crop cultivation, the minister told the agencies and localities to seek ways to reach a production value growth rate of 2.5 – 3 percent and export revenue of at least 16 billion USD.

Meanwhile, animal husbandry and fisheries should try to expand the production values by 4 – 5 percent and 6 percent, respectively, next year. The overseas shipments of aquatic products are expected to earn some 7.5 billion USD.

The sector plans to increase the forestry production value by 5.5 – 6 percent and bring home 7.5 – 7.7 billion USD from the export of forestry products.

In the first half of 2017, Vietnam earned 17.1 billion USD from shipping agro-forestry-fishery products abroad, up 13.1 percent year on year. The figure was 32.1 billion USD in 2016, according to the ministry.

Mitsubishi Motors plots expansion in Vietnam

Mitsubishi Motors Vietnam affirmed it will inject more capital into its auto assembly facility in the country to expand production and made plans to sale electric cars despite lower tariffs on imported completely built-up units from the ASEAN.

Osamu Masuko, chief executive officer at Mitsubishi Motors Corp., announced the corporation’s plans to increase capital in Vietnam as well as pushing green designs in the Vietnamese automobile market at a July 19 meeting with Prime Minister Nguyen Xuan Phuc and leaders of the Ministry of Industry and Trade.

The company is looking forward to further investments in modern assembling technology and selling electric vehicles in Vietnam, which would contribute to the country’s environmental protection efforts, according to its announcement.

Osamu Masuko revealed that a Nissan-Mitsubishi joint venture plans to build a plant in Vietnam, with intentions to scale up investments in Vietnam and the ASEAN bloc. However, the specific timeline has not released.

“More dealerships and service centres will go up in the country in the coming time,” said Masuko.

In 2016 Mitsubishi Motors Vietnam (MMV) officially was renamed from Vina Star Motors (VSM), after an ownership structure changed in the joint venture. The joint venture said that Mitsubishi’s member companies have increased their ownership from 50% to 82%.

Established since 1994 by Japan’s Mitsubishi Motors Corporation and Mitsubishi Trading Company, Malaysia’s Perusahaan Otomobil Nasional Berhad and Vietnam’s Transport Investment Cooperation and Import and Export JSC as distributor of Mitsubishi Motors’ vehicles in Vietnam – Mitsubishi Motors Vietnam Co. Ltd., was one of first automobile joint-ventures in this market.

The joint venture headquartered in the southern province of Binh Duong’s Di An Town said on its website that it has investment capital of over VND365.4 billion (US$16.38 million) and a factory with an annual capacity of 5,000 vehicles.

Vietnam, Pakistan, Burma to drive 2018 global rice exports

Global rice trade has been projected to increase 1% to 42.3 million metric tons in 2018, the third highest on record and the second consecutive year of expanded trade, according to the US Department of Agriculture.

The USDA Economic Research Service noted that a major factor behind the enlarged trade in 2018 is projected increased exports from three of the top six global exporters—Vietnam, Pakistan, and Burma. 

Exports of Vietnam for 2018 are expected to increase 400,000 metric tons, to 6 million, due to increased demand from Southeast Asia, especially the Philippines. China is again forecasted to be the country’s largest export market.

Pakistan is projected to export 4.1 million metric tons of rice in 2018, up 100,000 metric tons from a year earlier, a result of a slightly larger crop, the USDA said.

Burma is expected to export 1.7 million metric tons of rice in 2018, up 100,000 metric tons from 2017, primarily due to stronger demand from regional buyers and the EU.

In contrast, exports for India are projected to drop 500,000 metric tons in 2018 due to a smaller crop and stronger domestic use.

According to the USDA, Thailand exports are expected to be flat in 2018, while US rice exports are projec

Việt Nam’s exports to Algeria grow 37%     

Viet Nam’s export revenue to Algeria rose 37 per cent year-on-year to US$190 million in the first half of the year.

The figures were revealed by the Vietnamese Commercial Affairs Office in Algeria under the Ministry of Industry and Trade.

Key shipments included nearly 32,000 tonnes of coffee valued at more than $68 million (up 27 per cent), telephones and spare parts at more than $52 million (up 5 per cent) and nearly 26,700 tonnes of rice at $10 million, quadrupling the value in the same period last year.

Algeria is Viet Nam’s second largest importer in Africa, following South Africa.

Viet Nam-Algeria economic co-operation prospects are plenty, with Algerian consumers familiar with Vietnamese goods, while Algerian animal feed, medicine and natural minerals are sold in Viet Nam.

In terms of investment, the Bir-Seba gas and oil joint venture between PetroVietnam, Sonatrach (Algeria) and PTT (Thailand) became operational in 2015, producing 18,000 barrels per day. 

First Solar resumes solar panel project in Vietnam

The U.S.-based First Solar Group has resumed its solar panel production project at Dong Nam Industrial Zone in HCMC’s outlying district of Cu Chi, years after halting project and seeking to liquidate its facilities there.

The investor also has plans to boost the production scale in Vietnam compared to its initial plan to meet the increasing demand for thin-film solar power panels of customers in the word, said a source from the HCMC Export Processing and Industrial Zones Authority (HEPZA).

The project initially required total investment of US$1.2 billion including US$300 million spent on the first phase with annual panel capacity of 250MW. This is the biggest foreign direct investment (FDI) project at processing and industrial zones in the city.

Earlier, First Solar said that the plant would create jobs for around 600 locals after being put into operation and its products would be mainly shipped to the U.S. and Europe.

In an announcement for the project suspension in November 2011, after only eight months of construction, the group said that it shelved the project until market demand increased again. The suspension was attributed to the supply-demand imbalance in the world’s solar market at the time.

However, in mid-2012, First Solar appointed Cushman & Wakefield Vietnam to find buyers for the 113,000 square meters of manufacturing facility at Dong Nam Industrial Park built by German contractor M+W Group.

The manufacturing facility comprises 107,000 square meters of industrial space divided into two production areas, a large logistics area and an external office building of 6,000 square meters. The facility is located on a 23-hectare plot with additional 21 hectares set aside for future expansion, with available water and power supply for large-scale production.

Many other investors have showed their keen interest in taking over the manufacturing facility of the plant. However, they faced complex procedures and a requirement by HEPZA that the new investors had to take over the entire hi-tech project.

An investor, the HEPZA source said, finally inched close to the takeover, but First Solar backed off from the liquidation scheme, and resumed the project. HEPZA said the investor was allowed to continue the project because it had not been recalled by authorities.

Experts considered First Solar as the leading manufacturer of thin-film solar power panels, the main product to compete with Chinese enterprises that mainly produce polycrystalline silicon solar panels.

HCMC promotes science and technology development

The HCMC government has suggested the Ministry of Science and Technology consider four tasks to support startup activities and promote the production of industrial robots and automatic guided vehicles, according to the news website of the HCMC People’s Committee.

In particular, there are four tasks proposed for the supporting program for science and technology enterprises and institutions.

Two of the four tasks are suggested by the Innovative Technology Development Corporation, including studying and manufacturing industrial robots and automatic guided vehicles.

The city plans to manufacture and sell automatic guided vehicles at affordable prices for domestic firms, while robots will help improve production speed, accuracy and product quality.

Two other tasks include improving the entrepreneurship capacity of the Business Startup Support Center and the Agricultural Hi-tech Park of HCMC.

In late April 2017, the HCMC government and the Ministry of Science and Technology signed cooperation agreements on promoting the development of science, technology and innovation, human resource training, technology transfer, supporting programs for startups and promoting cooperation between Hoa Lac Hi-Tech Park and Saigon Hi-Tech Park.

The two sides will work together to upgrade the HCM Technology Transfer Center into a national-level technology transfer center and develop the Center for Science and Technology Information under the HCMC Department of Science and Technology into a leading center of the entire southern Vietnam.

The two sides will cooperate to develop entrepreneurship-nurturing ecosystem, improve enterprises’ awareness of intellectual property, develop the chip industry, support enterprises, institutions and universities in intellectual property via training courses, and develop equipment and technology innovation programs for businesses.

HCMC to finish multiple traffic infrastructure projects later this year

The HCMC Transport Department says a slew of major transport infrastructure projects intended to ease traffic congestion will be completed by the end of this year.

In particular, work on the Nhi Thien Duong 1 Bridge is scheduled for completion in October. The bridge is expected to facilitate the transport for road users from District 8 to the downtown area.

The first branch of the An Suong Tunnel which spans from Truong Chinh Street to the National Highway 22 will be up and running later this year. Meanwhile, a flyover on a Pham Ngu Lao Street section in Go Vap District will be ready for use in September.

Besides, work on the remaining exits on Nguyen Tri Phuong and Nguyen Van Cu streets linking with Vo Van Kiet Street will be finished at the end of next month.

The municipal transport department has plans to speed up work on the My Thuy Intersection so that phase one of the project will be completed later this year, and also break ground for six other road and bridge projects in a bid to reduce traffic congestion around Cat Lai Port in District 2.

The local government has so far opened to traffic a branch of a steel overpass running along Nguyen Oanh and Nguyen Kiem streets at Go Vap Intersection; an overpass connecting National Highway 1A with Le Trong Tan and Nguyen Thi Tu streets; and two steel overpasses at Truong Son Intersection and Nguyen Thai Son-Nguyen Kiem Roundabout.