Vietnam, Venezuela promote agricultural cooperation

Vietnam and Venezuela will cooperate on agricultural and aquacultural projects in the Venezuelan state of Falcon as detailed in agreements recently negotiated between the two nations.

During a visit to Mauroa town in Falcon state, Vietnamese Ambassador to Venezuela Ngo Tien Dung toured potential aquaculture project locations.

Ambassador Ngo Tien Dung said both sides have a history of successful cooperation in tourism, housing construction, and aquaculture. In 2014, joint venture factories will be built to produce energy-saving light bulbs.

Ambassador Dung used a press release to express confidence in the cooperative project’s success.

The ambassador recalled the 2009 journey by Vietnamese agricultural engineers to analyse fish and shrimp cultivation areas in Maurora.

Ambassador Dung stated both Vietnam and Venezuela orient their development along socialist orientations, paving the way for future cooperative agreements in tourism, land, and agriculture.

Japan seeks business opportunities in Vietnam

A delegation of 40 businesses from Japan’s Kyushu region has attended a HCM City seminar on September 17 to explore potential business opportunities in Vietnam.

Vietnamese and Japanese businesses compared market experiences and began preliminary partnership discussions in information and technology, food, mechanics, ceramics, construction, and education.

Vietnam Chamber of Commerce and Industry HCM City Branch Director Vo Tan Thanh noted developments in bilateral trade ties during recent years and Japan’s importance to Vietnam as an economic partner.

Japan is Vietnam’s leading foreign investor, with 2,029 projects capitalised at US$33 billion as of August 2013. Its projects are widely renowned for their quality and efficiency.

Apart from major conglomerates, Japan’s small and medium-sized enterprises have also entered the Vietnamese market through investment and trade promotion activities.

Junior Chamber International Japan Representative Hidekazu Komaki said the Kyushu region contributes 10 percent of Japan’s economy and is targeting growing its proportion to 15 percent. Kyushu’s regional authorities are speeding up investment expansion in construction, tourism manufacturing, electronics, and automobiles.

Motorshow 2013 to be launched in HCM City

Ho Chi Minh City will host the 9th Motorshow Vietnam exhibition on October 23 24.

This was announced by Vietnam Automobile Manufacturers Association (VAMA) Chairman Jesus Metelo Arias at a September 17 press briefing.

Motorshow Vietnam 2013, its largest iteration so far, is expected to attract leading automobile groups including the eight VAMA members Ford, GM, Hino, Mercedes-Benz, Suzuki, Toyota, and Vinastar, as well as Audi, BMW, Land Rover, Lexus, Renault, Nissan, and Infiniti.

Arias is confident the exhibition will make significant contributions to Vietnam’s auto industry and deliver benefits to local consumers.

Chief Audi Vietnam Sales Agent Tran Tan Trung said this year’s show will focus on introducing the new range of environmentally friendly products discounted for Vietnamese buyers. Visitors to the event can learn more about the variety of automobile accessories and spare parts on display at nearly 100 booths. They can also inquire after banking and auto insurance services.

Can Tho to host Vietbuild 2013 int’l exhibition

Nearly 200 businesses from nine nations will attend the international exhibition Vietbuild 2013 in Can Tho City from October 2-6.

The annual exhibition showcases the latest product ranges from local and international brands operating in construction materials, interior design, and real estate.

Vietnamese businesses will focus on reflecting the domestic construction sector’s achievements during the national renewal process.  The event also displays surveys industrial parks, residential blocs, high-rise buildings, resorts, and includes a real estate transaction floor.

A series of seminars will be also held to discuss the industry’s latest technologies and environmentally friendly advances.

Vietnam,Turkey aim for US$3 billion trade turnover by 2015

Vietnam considers Turkey one of its biggest trade partners in West Asia, from where Vietnamese goods can easily penetrate Europe, the Middle East and North Africa.

Over the past five years, Vietnam and Turkey have made certain progress in two-way trade turnover, says Tran Quang Huy, Head of the Africa, West Asia and South Asia Market Department.

Vietnam’s total imports and exports increased by 115% from US$443 million in 2008 to 952.8 million in 2012 and reached US$668.5 million in the first seven months of this year.

Vietnam exports different kinds of goods to Tuimporkey, including cotton, fibre, garment, footwear, rubber, mobile phones, rice, coconut rice, timber, steel, machinery and equipment, computers, electronics, pepper, tea, tobacco, electric wires and cables, plastic products, handicrafts, ceramics and seafood.

Vietnam is always in trade surplus: its exports to Turkey reached US$333 million in 2008 (triple Turkey’s figure), US$772 million in 2011 (10 times higher than Turkey’s figure), and US$862.7 million in 2012 (9.6 times higher than Turkey’s figure).

This is attributed to Turkey’s growing demand for Vietnamese goods and Vietnam’s efforts to build policy and mechanisms for market research, promotion and expansion.

Vice versa, Vietnam imports steel, cotton, automobile spare parts, pharmaceuticals, plastic materials, garment and leather materials, animal food and chemicals from Turkey, though at too low a level.

Vietnamese Ambassador to Turkey Nguyen The Cuong says on the one hand Turkish businesses have to compete fiercely in terms of both price and quality with those from Vietnam’s traditional market, such as the EU, US, Japan, the Republic of Korea, and China in the long-run.

But on the other hand, they have not paid due attention to boosting trade cooperation with Vietnam. Just a few business delegations have come to Vietnam in recent times, even though Turkey plans to raise its exports to Asia to US$500 billion by 2030.

According to the Trade Promotion Agency under the Ministry of Industry and Trade, Vietnam and Turkey have not yet fully exploited even opportunity for trade cooperation, despite a growth in bilateral trade turnover.

Exports of some key Vietnamese products such as garment, footwear, rubber, timber products and pepper to Turkey remain at too low level to meet Turkey’s growing demand.

Meanwhile, Turkey’s key products imported into Vietnam are machinery and equipment, but they are almost the same to compare with similar ones from China and Europe in terms of both price and quality.

To achieve US$3 billion in trade turnover by 2015 and US$8-10 billion in 2020, Vietnam and Turkey will have to accelerate trade promotions at major fairs and exhibitions.

They will also have to adjust their plans to minimize losses caused by protective and anti-dumping decisions when there is not yet a completed mechanism for boosting bilateral trade relations in the long run.

Vietnam-Angola investment cooperation in focus

A roundtable conference was held by the Embassy of Vietnam in Angola on September 15 to promote investment cooperation in the country.

Present were Vietnamese Ambassador Do Ba Khoa and 60 education and healthcare experts, businesses and contractors operating in Angola.

They analyzed the strengths and weaknesses of Vietnamese investors as well as opportunities and challenges facing them in the future.

They agreed that it’s necessary to build a common strategy to exploit every opportunity for businesses of the two countries to improve healthcare and trade cooperation.

Businesses and contractors reached a consensus on cooperating in building a high-quality medical laboratory, Vietnam-Angola general hospital, and Vietnam commercial centre and set up a major construction company. Dozens of Vietnamese and Angolan investors pledged to provide capital for these projects.  

Farmers apprehensive before new sugarcane season

Farmers in the Mekong Delta remain apprehensive before harvesting the next sugarcane crop due to falling prices.

Le Thanh Son, a farmer in Tan Phuoc Hung Commune in Phung Hiep District in Hau Giang Province, said he has harvested 13 tons in one thousand square meters and traders have bought at VND800 per kilogram from his fields.

He has so far made no profit from this year’s crop.

Heavy overheads including payment for sugarcane seed, fertilizer, pesticide, labor, have all reduced his profits.

Overheads will shoot up even further if farmers harvest the crop in flood season as rate for cutting and loading sugarcane from fields onto boats will increase more.

Farmers complained of low prices while sugar plants said this was high price compared to the world, where a kilogram of sugarcane fetches VND7,000 while it is VND10,000 in the country.

Nguyen Thanh Long, Chairman of Vietnam Sugar and Sugarcane Association, said plants collect sugarcane at high price but farmers’ income is not high. If plants raise the rate, farmers will enjoy profits and supply will exceed demand and vice versa.

According to the Ministry of Agriculture and Rural Development (MARD), farmers harvested more than 19 million tons and the sugarcane sector is expected to produce some 1.53 million tons of sugar this year, which exceeds total demand.

The area under sugarcane in the country is 298,200 hectares, an increase of 15,000 hectares.

Price of sugar has been stable for two years yet the amount of sugar in stock is over 200,000 tons, with the threat of smuggled sugar placing farmers and plants in a difficult situation.

The domestic sugarcane sector is on the verge of being crippled by smuggled products as a large amount of sugar is illegally brought into the country across the southwestern borders regularly.

Nguyen Thanh Long said the next time, Vietnamese farmers and plants will encounter more difficult times because of tax on imported sugar within Asian countries.

Therefore, the Ministry of Industry and Trade and MARD should have talks and apply flexible methods. In addition, the government should have investment strategies to help improve seed and quality to enhance competition with other countries in the region.

New plants offer untapped potential

Although the number of certified new plant varieties every year has increased, many have not been put into large-scale production, according to experts.

The Viet Nam Academy of Agricultural Science (VAAS) reported, for example, that 161 new plant varieties, mostly rice strains, were certified by the Ministry of Agriculture and Rural Development (MARD) in 2011 and 2012.

During this period, the Cuu Long Delta Rice Research Institute also provided 27 rice varieties certified by MARD.

The institute has had 132 rice varieties certified and put into production so far, according to the institute head, Le Van Banh.

Nguyen Van Bo, VAAS director, said most plant varieties that are cultivated on a total area of more than 50,000ha were certified five to 10 years ago.

Most vegetables, cashew, pepper and soybean varieties that are now being cultivated were certified more than 10 years ago, he said.

Because there is no key plant variety for individual regions, agricultural production has not been equal in quality and has had low competitiveness and brought low prices, he added.

Le Quoc Doanh, agriculture deputy minister, said the quality of plant varieties must be improved to increase prices.

Institutes and government agencies should create rice varieties with high yield as well, he said.

Mai Xuan Trieu, head of the Corn Research Institute, however, noted that the quality of our new "corn varieties is not lower than corn varieties of the US and some countries."

The unstable output of the corn varieties occurred because of improper implementation of tending, irrigating, and fertilising.

To increase the country's corn output by 1 tonne per hectare under the Government's requirements, cultivation processes must be improved.

MARD plans to develop groups of plant varieties and advanced farming technologies for each region, and those that will adapt to climate change and be environmentally sustainable.

The country exported US$27.5 billion of agricultural produce last year. Of that figure, plant produce accounted for 60 per cent, according to MARD.

Delayed payments leave workers in lurch

Localities and State agencies are struggling to seek funding for basic infrastructure development projects, according to a new report.

In some cases, work has been completed but payment is still due, causing major difficulties for constructors and their employees.

The report by the State Audit reveals that localities nationwide owe debts of around VND91 trillion (US$4.31 billion) from infrastructure spending up to the end of 2011.

Out of 63 provinces and cities surveyed, 15 have infrastructure development debts that are 2-3 times higher than initially planned.

For example: in central Ha Tinh Province, the public infrastructure development debt is nearly VND9.7 trillion ($460 million) or 2.93 times higher than planned, central Nghe An province VND6.3 trillion ($299 million) or 2.09 times higher, southern Dong Thap province VND3.3 trillion ($156.5 million) or 2.54 times higher and coastal Quang Ninh Province VND3 trillion ($142 million) or 1.16 times higher.

Tuoi Tre (Youth) newspaper reported that until June, nearly 3,200 employees in 98 companies under the Transport Ministry suffered a shortage of work. As a result, the companies did not pay out salaries worth a total of over VND160 billion ($7.59 million) and social/health insurance debt of VND255 billion ($10.67 million), according to the ministry's Trade Union.

Delayed payment was a feature of over 200 transport projects, with hold-ups and postponements of projects blamed for the shortage of work and overdue wages.

Pham Dinh Hanh, director of Hoa Hiep Ltd Company in central Vinh City said his company finished and handed over a State project roughly one year ago, but did not receive enough investment.

"We had to borrow from banks to have enough capital to develop constructions. When the State delayed paying us, we could not return the bank loan, so we faced many difficulties," he said.

In Ha Noi alone, major projects including Thanh Tri Bridge, Vinh Tuy Bridge and the city's Ring Road Number 3 have been in use for years but the projects' balance sheets have still not been settled.

Moreover, up to last June, total infrastructure development debt in 11 districts and towns was VND722.7 billion ($34.2 million), spanning across 1,100 projects.

Hoang Van Hung, an official at Ha Noi's Ba Vi District Finance Department, said the district's budget lacked funding for infrastructure development as it collected about VND70 billion but spent about VND1.3 trillion in an average year.

At commune level, funding for public works mostly came from auctioning land use rights, he said, noting that it was increasingly difficult to mobilise capital this way due to the ailing real estate market.

Vice chairman of Ha Noi Municipal People's Committee Nguyen Huy Tuong said that in the context of limited resources but a huge need to develop infrastructure, many State agencies still invested inefficiently, contributing to the public debts.

Vice head of the Central Institute for Economic Management Vo Tri Thanh, as quoted in Kinh te & Do thi (Economy and Urban Area) newspaper, said that addressing infrastructure development debts was very difficult because most were incurred a long time ago and in complicated fashion.

On one side, investors – usually State agencies – did not have enough money to pour into projects which had been approved but suffered from slow disbursement.

On the other side, many constructors offered the lowest project cost possible to win the contract and agreed to allow late payments, Thanh said, adding that when their business suffered losses, they found it even harder to manage their debts.

Deputy Minister of Finance Pham Sy Danh said the ministry had asked localities to not develop new projects unless they could arrange money to pay outstanding infrastructure development debts.

In addition, localities were told to avoid spending more than the approved capital on any projects and to ensure that constructors did not need to spend any money in advance.

Discounts may revive flagging property sales

While Government policies are yet to make a significant impact on the country's frozen real estate market, experts argue that discounts may provide property firms with a much needed boost to sales.

The suggestion follows recent moves by two HCM City-based property firms which slashed prices for high-end villas and apartments in District 7 by half, to revive the sluggish market.

Novaland Group on Sunday announced that prices for North Tower apartments, the third phase of the Sunrise City project, would be around VND27 million (US$1,280) per square metre, instead of initial price of VND50 million ($2,380).

The move puts apartment prices around VND1.8 billion ($85,700) instead of the usual VND4-5 billion ($190,470-238,100).

"In this tough period of the market, we have to prioritise project liquidity," said Novaland General Director Phan Thanh Huy.

Last Friday, Phat Dat Real Estate Development said in a notice that the company had cut average prices for apartments and villas at the "The EverRich 3" from VND80-100 million ($3,800-4,760) to about VND40 million ($1,900) per square metre.

Phat Dat General Director Nguyen Van Dat said the move was expected to help the company sell the properties and pull in VND300 billion ($14.28 million) needed to meet 2013 turnover targets and accumulate cash flow for next year.

The companies said they needed to cut costs and restructure human resources to offer the discounts.

Economist Tran Du Lich told Doanh nhan Sai Gon (Saigon Entrepreneurs) online that HCM City has nearly 12,450 unsold apartments, the majority of which were high-end.

Transforming the apartments into social houses, a method local authorities and some investors were implementing to deal with the inventory, needed careful consideration to avoid even more negative impacts.

"I support Government intervention, but [we should consider that] demand mainly focuses on properties priced below VND1 billion ($47,600) in Ha Noi and HCM City and below VND500-600 million ($23,800-28,570) in provinces," Lich said.

"For the high-end segment, we shouldn't hastily interfere but let the market regulate itself. Slashing prices, even accepting losses, is the best solution to boost sales at present," he said.

The HCM City Real Estate Association Chairman, Le Hoang Chau, said the recent price reduction could help property firms prepare for more open policies that would allow more domestic purchases by foreigners and overseas Vietnamese under Government consideration.

Municipal Department of Construction director Tran Trong Tuan told local National Assembly deputies last week that property sales were still quite good in some parts of the city where infrastructure and living conditions had been improved.

Local drinks face stiff competition

Local beer and beverage products will face fierce competition if the country does away with the import tax for beer and beverage products this year, which it must do in order to join the Trans Pacific Partnership.

The current tax rate is 50 per cent for beer and alcohol and 30 per cent for non-alcoholic beverages such as juice and soda.

While joining the TPP would give Viet Nam the chance to attract more investment, it would also pose a significant challenge, said Luong Hoang Thai, head of the Ministry of Industry and Trade's Multilateral Commercial Department.

Many TPP member countries such as the US, Japan, Canada, Mexico and Chile have advantages in exporting beverages; without an import tax, local products might not be able to compete.

Two local companies, the Sai Gon Beer Corporation (Sabeco) and Ha Noi Beer Company (Habeco), account for two-thirds of the local beer market. But they might be threatened by cheaper imports of popular foreign brands like Sapporo from Japan and ABInBev from the US.

The main reason people stick to local brews is because they are cheap and of decent quality, Thai said, warning that when living standards inevitably improved, many people would shift to foreign beers – especially if they were sold at cheaper prices.

Meanwhile, global beverage firms Pepsi and Coca-Cola have dominated the local non-alcoholic beverage market. Tan Hiep Phat is the only domestic beverage producer that can stand up to their market power.

According to the Viet Nam Alcohol, Beer and Beverage Association, Vietnamese consumers drank 2.38 billion litres of beer last year, 8 per cent higher than 2011, and 4.22 billion litres of non-alcoholic beverages, a 9 per cent increase.

Those figures reveal Viet Nam's strong potential as a market for alcohol, beer and other beverages, Thai said. He recommended local firms improve the quality of their products and cut prices to hang onto their market share.

Additionally, local firms should study demand for alcohol, beer and beverages in other TPP countries and seek to expand their markets there, he said.

Tay Ninh unveils investment hopes

The Tay Ninh Province Trade and Investment Promotion Centre has unveiled a list of 12 major projects in which it is seeking investment on a priority basis in the next two years.

They are in sectors like agriculture and animal husbandry, tourism, education, and housing.

One of them is a project for making products from sugarcane residue like plywood, fertilisers, and ethanol, which will be offered special incentives and the investor will be encouraged to locate in Tan Bien, Tan Chau, or Chau Thanh District.

A project to manufacture rubber tyres, medical gloves, and household objects will be offered incentives in Go Dau, Duong Minh Chau, and Chau Thanh districts and extra incentives if located in Tan Chau, Tan Bien, or Ben Cau District.

Industrial parks in Tan Chau, Tan Bien, Chau Thanh and Duong Minh Chau districts are looking for investors to set up plants to produce bio-fuel, glucose, drugs, and food and industrial chemicals from cassava.

The province is also looking for investment in livestock and poultry farming and meat, milk, and seafood processing except in Hoa Thanh District and Tay Ninh town.

The others include development of the Ba Den and Dau Tieng tourism zones and construction of three- to five-star hotels, a university, the Chi Lang residential area for low-income people, and residential area No. 2 — all in Tay Ninh town – and development of the Ka Tum and Chang Riec border gates.

The province will offer incentives for all the projects, according to the centre.

New rules to mend bankruptcy loopholes

Experts from the Ministry of Planning and Investment have proposed amendments to the 2005 Law on Enterprises, suggesting that those entities that fail to complete bankruptcy or dissolution procedures and have big tax debts are not allowed to establish and manage enterprises in the future.

They have suggested adjustments to Article 13 on rights to establish, contribute capital, purchase shares and manage enterprises.

Under the proposed amendments to this article, the failure to perform bankruptcy and dissolution procedures for a defunct enterprise will strip key executives of the right to establish and manage enterprises in Vietnam. Affected people will include legal representatives of enterprises, chairpersons of joint stock companies, chairpersons of membership councils, and chairpersons of limited liability companies.

For Article 165 on dealing with breaches, enterprises whose registration licenses have been withdrawn as requested by tax agencies, business registration agencies and courts and fail to report their business activities in a year shall be subject to disciplinary action in accordance with the law.

The draft also includes new regulations on the national business registration portal that will publicize situation and infringements (if any) of enterprises.

Do Tien Thinh from the Business Registration Division under the Ministry of Planning and Investment said that the proposals aim to fix shortcomings of the 2005 Law on Enterprises.

According to the agency, up to 258,000 enterprises in the country had stopped operations and dissolved as of August. Of which, 94,500 enterprises had dissolved, 22,500 firms had halted operation and 141,000 others had stopped operations without making prompt announcements.

Besides, there have been 518 foreign direct investment (FDI) firms whose business leaders have taken flight.

Thinh said the 141,000 enterprises mentioned above have not paid taxes or business leaders have disappeared. They have to carry our bankruptcy and dissolution procedures. However, as the formalities are still complicated, only 100 enterprises register for bankruptcy status every year, Thinh said.

The problems may hurt benefits of business partners, lenders and employees while the State cannot recover tax debts.

30% of homebuyers taking out bank loans

Some 30% of the total number of homebuyers have taken out bank loans, according to many realty developers in HCMC.

Multiple property companies reported that the number of homebuyers taking credits had been rising in the past few months. Around three out of ten homebuyers have applied for loans from the banks, they said, citing the actual number of apartments sold as the foundation.

Ngo Quang Phuc, marketing director of Him Lam Land, said his company had sold about 100 apartments of the Him Lam Riverside project in District 7 this year, with roughly 30% of the total number of homebuyers borrowing money from banks.

The number of customers obtaining home loans has grown rapidly compared to last year when Phuc’s enterprise sold 50 condos, with only two customers borrowing money from banks.

In the middle-class housing segment, Nam Long Investment Corporation also recorded the same number of customers getting bank loans with the Ehome 3 Tay Saigon project in Binh Tan District. Around 100 customers performed procedures to borrow money from banks in the first sale program with a total of 330 condos on offer while 19 customers applied for home loans in the second sale program launching 65 condos.

However, only projects already complete or those near completion with clear legality and high liquidity developed by prestigious project owners are able to access loans. This is easy to understand as local banks must thoroughly screen financial capability of investors as well as liquidity of housing schemes whose would-be flats are taken as collateral for the loans.

Besides, Phuc noticed lenders in need of boosting lending and attractive promotions plus interest rate subsidies offered by project owners has also attracted a great deal of attention from homebuyers.

In particular, Him Lam Land is now selling condos of the Him Lam Riverside scheme with a flexible payment method allowing homebuyers to move into their homes after making a down payment of 50% of a flat’s value and settling the rest in five years’ time with an annual fixed rate of 6%.

Similarly, Phu My Hung Corporation has announced to put up for sale the third phase of the Happy Valley project this month with the financial support of many banks with an annual fixed rate of 8% over a period of 30 months.

Nam Long, meanwhile, offers condos of the Ehome 3 scheme at VND700-800 million a unit, with homebuyers allowed to make a down payment of VND285 million of the apartment’s value to take over the home and settle the rest in two years with a fixed rate of 8% per annum.

Local firm builds double-hull speedboat

Tien Giang Province-based DP Green Technology on Thursday finished building two double-hull speedboats that can cruise at a maximum speed of 35-45 nautical miles per hour.

Costing nearly US$1 million per unit, the two composite speedboats were all built in Vietnam but equipped with German engines, said Tran Song Hai, director of the firm, said in a statement.

DP Green Technology can provide customers with boats having seating capacities of 60, 140 and 160 passengers.

According to Hai, such boats are safe and meet water transport requirements in Vietnam.

Ninh Thuan focuses on human resource development

One of the eight important solutions that central Ninh Thuan Province People’s Committee has applied to better implement the master plan on provincial socio-economic development until 2020 with a vision towards 2030 is to enhance training of human resources, reports the Vietnam Economic News Online.

Approximately 9,000 employees are trained annually.

According to statistics from the Ninh Thuan Department of Labor, War Invalids and Social Affairs, currently there are 18 vocational training institutions across the province, including 12 public and six private. Each year, about 9,000 employees in the province are trained in working skills at all levels.

This year, Ninh Thuan will complete its long-term training plan for 1,000 workers at vocational school and college levels, and also the short-term training plan for 8,500 workers (including 4,000 rural workers). It is expected that 70 percent of the trainees can find employments after taking the courses.

There are 293 teachers at vocational training institutions in the province, most of them trained in vocational colleges, technical universities, and pedagogy. To meet the demands, over the last few years, a number of provincial vocational training institutions have conducted joint training with vocational schools and colleges outside the province such as those of Nha Trang and Da Lat.

Ninh Thuan has also devoted considerable resources to the vocational training project for rural workers until 2020. During the 2010-2012 period, the province spent 53.6 billion VND on vocational training for 12,274 rural workers.

The workforce for every industry is being prepared.

Seeing that high-quality human resources are a key element to help Ninh Thuan achieve its provincial industrial development goals until 2020, the province is currently developing plans to prepare human resources for its six pillar industries.

Specifically, Ninh Thuan will prioritise training activities in electricity, engineering, electronics, manufacturing, and clean energy development. In addition, it will also focus on training managers, tourism staff, scientific and technical workers, and industrially skilled workers. The province has had human resources training plans for two nuclear power plants in the locality, including training 2,750 nuclear power professionals and 5,250 employees.

The total number of employees trained for the six industries would reach around 129,000 by 2015, accounting for 44.6 percent of the total number of employees working in the province; and around 201,000 by 2020, accounting for 56.4 percent.

To achieve these goals, Ninh Thuan will promote the role of human resources for local socioeconomic development and mobilise local organisations and businesses to participate in provincial human resources development programmes. It is estimated that the province will need a total investment for training until 2020 of 17 trillion VND; of which about 20 percent will be funded by the state budget and the remaining 80 percent from other private resources.

In addition, Ninh Thuan will also implement incentives to attract skilled workers, develop teams of qualified teachers, make adequate investment for infrastructure and equipment for vocational training, strengthen the link between the management agencies and vocational training institutions, employers, employees, and training providers to ensure that the training supply and demand will meet.

Microsoft adds distributor to roster

Last week the Petroleum General Distribution Services Company (PSD), a member of Petrosetco, was signed as the third official distributor of Microsoft solutions in Vietnam and Laos.

The Ho Chi Minh City-based company has already forged partnerships with global giants in telecom, Samsung; computers, HP, Dell, Acer, Lenovo; and accessories, Kingston, Huawei, Adata, Genius, ZyXEL. Its next step after being authorised to distribute Microsoft solutions will be supplying Microsoft devices and services to Laos and Vietnam, where the US giant is aiming for robust expansion.

Outlining the new project, Microsoft Vietnam CEO Vu Minh Tri said the company is not only a software giant, but also a device and service company that provides end-to-end solutions to customers. Towards higher sales and usage of these products, Microsoft must expand its partnerships, and PSD is part of that strategy.

He added that PSD had diverse experience in distributing hardware products and devices with an established network throughout both countries, with 11 regional warehouses and 1,500 resellers in Vietnam. Most importantly, PSD has extensive experience working with major technology brands.

“From now, PSD is an extension of Microsoft, and its duty is to help us improve in remote areas where we have little coverage,” said Tri.

He went on to say that the selection process for the new distributor was originally cut down to three final candidates, and PSD was selected based on their vision and competence. “Once we identified PSD as our ideal partner, we trained one of their teams to educate them on the uses and strengths of our products and services. We are eager to see breakthoughs.”

PSD CEO Huynh Van Thi said his company’s goal was to become Vietnam’s principal distributor of quality products. Established in 2007 as a member of PertoVietnam General Services Co. (Petrosetco), PSD became an official distributor for Nokia in Vietnam the same year and was named Samsung’s sole distributor in July 2012. It curently ranks 75th on the VNR list of the 500 biggest companies in Vietnam.

Tri explained that the new partnership was expected to contribute to Vietnam’s IT sector as a whole, and would support the country in becoming an IT leader in Southeast Asia.

PSD anticipates $15 million in sales for the first year with annual growth of around 30-40 per cent. They will have to work hard to catch up with already established distributors FPT and Wintech.

Microsoft has been operating in Vietnam for more than 16 years and employs around 100 people and maintains 500 local partners. The company has invested $80 million in the country thus far into several projects and programmes including Worldwide Appathon, BizSpark, and Dreamspark

Early this month, Microsoft Asia Pacific president Cesar Cernuda told VIR that Vietnam has the potential to have the highest IT market growth rate in all South East Asia. He noted skilled and competitive software developers, major foreign-invested IT projects, and the development of 3G as strengths that Vietnam should capitalise on. Accordingly, Microsoft is exploring many avenues for partnerships that can bolster awareness and boost sales of its products.

Cernuda said Microsoft had a strategic plan that aligns with Vietnam’s ICT 2020 master plan in key areas such as ICT infrastructure and security, SME productivity, human resources, and education and training.

Emerging markets venture into MES

Emerging market players are fuelling domestic growth, intra-regional trade and foreign investment across Asia Pacific, said the latest joint report by Roland Berger and DKSH.

The Global Market Expansion Services report, published last week, highlighted the influence of emerging market players and provided insights into market expansion services providers and their clients.

Continued globalisation is challenging companies to optimise the utilisation of resources and focus on their core competencies. This constellation has given rise to a breed of specialist companies: Market Expansion Services (MES) providers. These providers help multinationals and small-to-medium-sized enterprises reduce costs by outsourcing non-core activities, improve revenues and increase market shares.

According to the report, the MES industry took in $2.5 trillion last year, an increase of more than $300 billion in terms of transaction value in the past two years alone. This growth is expected to continue until 2017, when the forecast volume will stand at $3.6 trillion, an indication that the global MES market is outperforming the global consumption market by 1 per cent per annum. Strong growth, forecast through 2017, will drive the Asia Pacific MES market up to a total volume of roughly $1.1 trillion, making it by far the largest such market in the world.

In Asia over the past five years, the top ten emerging market players have grown at an annual rate of 22 per cent, almost four times faster than the 6 per cent annual growth of the world’s top ten developed market players. At the same time, many emerging market players have realised they can partner with MES providers for even greater success in their expansion into new markets.

The authors explained that as Western developed market players were facing saturated home markets and seeking new growth opportunities, emerging market players were proving formidable competitors on a playing field that increasingly favours them. Their advantages include established local networks, knowledge of, and an affinity for, local customs and habits, and the flexibility to adapt quickly to a dynamic environment.

Based on the authors’ survey of around 250 emerging market players, the six types of players are growth speeders, cost cutters, efficient expanders, innovative expanders, international networkers and regional contenders.

In terms of the market expansion readiness index across Asia Pacific, the report identified four groups of economies - Globalisers, Expanders, Explorers and Scouts. Vietnam ranked fourth in the Explorers group with an index of 53. Within the same group, Thailand topped with 65, followed by New Zealand (64) and India (57). Indonesia (50) also joined the group. The Philippines, Cambodia, Sri Lanka, Myanmar and Laos were grouped as Scouts.

The report highlighted how emerging market players from not yet highly developed economies such as Laos and Cambodia are still primarily focused on satisfying local demand. By contrast, companies from more mature economies such as Malaysia and China are often internationally active and expanding both within Asia and further afield.

The demand for MES providers’ expertise is growing among emerging market players as their focus turned to growth and efficiency, said the report. Emerging market players in Asia are primarily looking for providers that offer strong corporate governance, integrity of the value chain, and the ability to provide market feedback.

Dr. Martin Wittig, chairman of Roland Berger Strategy Consultants Switzerland, said: “MES are gaining popularity because they allow companies to implement a market expansion approach that combines quick market access with the asset-light business model found in the export model, plus the proximity to target customers.”

Dr. Joerg Wolle, president and CEO of DKSH, commented: “I strongly believe that DKSH has the ability to meet the increasing demand for MES throughout Asia, a region home to diverse cultures, languages, business traditions and legal systems.”

DKSH is a leading MES provider that focuses on Asia, helping other companies and brands to growth their business in new or existing markets. Roland Berger is a top strategy consultancy that advises major international industry and service companies as well as public institutions.

R&D paves the way to innovation

ASEAN’s leading business conglomerate SCG has placed a strong emphasis on research and development towards keeping its high-quality products on pace with customer demands.

In its 100 year history, SCG has expanded its business across a wide range of fields including petrochemicals, cement, construction materials, paper and packaging and provided a global logistics network connecting Asia with Africa, Europe, and America.

To achieve its goal of being a sustainable business leader in ASEAN by 2015 – as declared in its vision statement “SCG Vision”, SCG has invested heavily in research and development (R&D) to promote itself as an innovative organisation with high value added products and services.

“Continued R&D promotion is a key contributing factor to driving SCG’s diverse range of innovative products and services that best accommodate the real needs of customers while uplifting people’s quality of life, and contributing to a better environment and sustainable society,” said SCG’s president and chief executive officer Kan Trakulhoon.

SCG’s R&D budget and personnel have regularly increased from 40 million baht ($1.28 million) and 100 professionals in 2005 to 1.43 billion baht ($45.76 million) and 1,034 in 2012. Notably, 71 of the group’s researchers hold doctorates.

The group’s sales of high value added products rooted in their R&D work have risen from 7.7 billion baht ($246.4 million) or 4 per cent of total sales in 2005 to 140 billion baht ($4.48 billion) last year. The group has furthered its innovation with its SCG Eco-Value label that encompasses a broad spectrum of eco-friendly products.

Some examples include special plastic film with high tensile strength which is leak and tear resistant, ideal for food packaging; machine glazed paper with high gloss and thin tissue used for packaging, food bags, and in the medical industry; dissolving pulp used in the production of rayon; and SCG house cooling systems which incorporate three main modules, namely SCG cool roof and ceiling system, SCG cool siding system and SCG cool outer house system.

SCG’s sales of high value added products and services have grown steadily from 32 per cent in 2011 to 34 per cent in 2012, while sales of SCG Eco-Value products accounted for 14 per cent of last year’s revenue.

R&D is central to the group’s development strategy, with the belief that innovation will be the driver of its future success. SCG scientists and engineers continually strive to create new products and improve production processes.

In conjunction with their marketing and production departments, SCG researchers identify product opportunities, conduct lab testing, and scale up the process for commercial production. They also support in the packaging design, commercialisation and return monitoring processes.

To celebrate its first centenary, the group featured its principals into the “SCG 100th Anniversary Innovative Exposition” to present SCG’s endless journey for a better future through series of new innovations and technologies.

“Partnership is very important to us, and we work closely with our customers and suppliers to ensure we are meeting market demands. We also work with international academic institutions and government organisations to identify opportunities for our state-of-the-art technology,” Trakulhoon said.

“SCG is committed to R&D that innovates both conceptually and in terms of the production process. The products and services that come out of that include eco-friendly products focused on not only increasing SCG’s sales, but also supporting the group in striving for energy efficiency and sustainability,” he noted.

Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR