LienVietPostBank chooses Oracle FLEXCUBE to support its growth

LienVietPostBank, among Vietnam’s top 10 largest private banks in terms of assets and equity, has chosen Oracle FLEXCUBE as its core banking platform.

LienVietPostBank, formed in 2011 after the merger of Lien Viet Bank and Vietnam Postal Saving Service Company, is now targeting to be among the top-5 banks of Vietnam in the next five years. The bank has embarked upon a technology transformation and consolidation programme to support this growth objective.

Oracle FLEXCUBE will now be the single core banking platform of the two merged entities, across its retail and corporate banking business and will replace a home grown system which was used by Vietnam Postal Saving Service Company.

“LienVietPostBank is in a unique position to become a true universal bank, a bank for everyone. With the addition of the postal network, we are able to address a large segment of the population, which was previously not served. To accomplish this, we needed a core platform that would provide the right architecture and scalability with a low risk implementation.

Oracle stood out as our provider of choice due to its local and global experience as we merge the operations of two banking entities,” said Nguyen Dinh Thang, member of the Board Of Directors and chairman of the Technology Committee. “Oracle FLEXCUBE had helped us at Lien Viet Bank and we are happy to partner with Oracle in this driving the next phase of growth with Postal Bank. Oracle FLEXCUBE provided the best mix of functionality, scale and local experience to help us meet our objectives.”

Oracle FLEXCUBE’S modern architecture, high level of business functionality and localised capabilities can help LienVietPostBank tap diverse market segments consisting of small to medium sized businesses, individuals and rural microfinance through its presence in 51 cities and provinces and 1,029 postal transaction offices nationwide.

Oracle FLEXCUBE enables the bank to service diverse segments and deliver the scalability required to rapidly expand its customer base to achieve its growth target.

Oracle FLEXCUBE has a strong customer base and experience in Vietnam, extending across more than 10 banks and has shown success in helping banks with mergers. Slated to go live in a year or less, this project can help LienVietPostBank meet its rapid expansion plans.

“Oracle FLEXCUBE was a platform of choice, in the first phase of the bank’s expansion, a decade back. Now as the company is expanding into additional markets, we are very excited be the leading choice again.

LienVietPostBank will be a showcase of our ability to help banks, successfully merge across different platforms by rapidly deploying a modern core banking platform.

Oracle FLEXCUBE provides our customers with efficient, responsive and digitally agile core banking platform, helping them scale, innovate and delight their customers,” said Ho Thanh Tung, managing director of Oracle Vietnam Pte Ltd.

Vietnamese farmers rake in huge profits from Japanese pumpkins

Farmers in a Vietnamese province have enjoyed tens of millions of dong (VND1 million = US$45) in profits from their latest harvest of Japanese pumpkin crops.

Farmers in Kon Tum Province, located in the Central Highlands, harvested their Japanese pumpkin crops late last year, and what they raked in was a real fortune, Nguyen Van Lan, chairman of Kon Plong District, said on Wednesday.

The Japanese pumpkin, or Kabocha, is an Asian variety of winter squash grown in Japan and the market for this kind of pumpkin has been blooming in Vietnam.

In Kon Plong, a hectare of the crop yielded 15 to 17 metric tons of the squash, weighing 1.7-2.5kg each, according to the official.

With the vegetable fetching VND7,000-VND10,000 per kg, farmers reaped up to VND70 million ($3,125) per hectare, after expenses, he said.

Besides the fully-grown veggie, farmers were also able to sell the plant’s flower, unripe melon, and stem, earning extra profits, Lan added.

Growing Japanese pumpkins has brought more economic effectiveness to farmers, while requiring less labor and production costs than other plants, according to the official.

“Japanese enterprises are investing in technology and supplying seedlings to 37 local households to enlarge the Japanese pumpkin growing areas,” he said.

“If the crops continue to produce good yields, we will keep expanding the growing areas.”

TPP opens up positive signs with strong foreign investment inflows

Experts said foreign investment capital inflows in Vietnam are expected to increase remarkably if the Trans-Pacific Partnership (TPP) is signed in the time ahead.

If the TPP is signed, Vietnam is considered one of nations which have enjoyed a lot of benefits such as high influx of foreign investments thanks to preferential tariffs, and low domestic production costs.

The US-based Intel group said 80% of the group’s microprocessors will be produced in Vietnam. According to statistics from Samsung, 50% of the company’s mobile phones are also manufactured in the country. These figures have shown that Vietnam is strategic destination of the world’s leading groups in the global supply chain.

Professor Nguyen Mai, President of Vietnam Association of Foreign Invested Enterprises said major projects of the world’s leading groups like Samsung, Nokia, LG and Intel have formed a wave of foreign investment in Vietnam.

For example, Samsung’s investment capital in Vietnam reached US$650 million in 2007, US$11.2 billion in 2014 and is expected to hit US$20 billion in the coming years. Meanwhile, Nokia’s investment in Vietnam increased from US$150 million to US$350 million in 2014 and the figure might amount to US$1.5 billion this year when Nokia’s factory have shifted from Hungary to Vietnam.

This is a good trend as these groups think that Vietnam is totally capable of meeting the requirements of hi-tech industries and might become a future workshop of the world.

According to statistics from the Foreign Investment Agency under the Ministry of Investment and Planning (MPI), foreign investments in Vietnam have increased sharply in terms of capital and projects recently. Until 2015, the country has attracted US$22.760 million in foreign investment capital, up 12.5% compared to the previous year’s corresponding period.

Since the beginning of this year, several localities in the country have kicked off trade promotion programs to attract foreign investment.

For example, Hanoi’s People’s Committee has recently announced 11 investment projects which focus on such fields as industry, trade, service, technical infrastructure, and urban infrastructure. Hanoi now ranks third among 63 provinces in attracting foreign investment.

Nguyen Gia Phuong, Director of the Hanoi Investment, Trade and Tourism Promotion Centre said “We have made thorough preparations for the implementation of feasible projects by offering incentive investment policies and speeding up land clearance and planning”.

In addition, there have been several factors which are expected to make a positive impact on prospects of attracting foreign investment in the coming time including administrative reforms, favourable investment climate, competitive capacity, and the amended Enterprise Law and Investment Law.

Meanwhile, indirect foreign investment capital source is also forecast to play an important role in stimulating the financial market, improving the efficiency of operations and enhance transparency among businesses.

According to economists, this is an important channel which has attracted capital sources for the national economy in the long-term, especially in the context when Vietnam is restructuring the economy and providing legal corridors for foreign investors in an open and transparent manner.

Therefore, Vietnam’s participation in TPP will help speed up the economic restructuring process, attract strong investment inflows and contribute to the country’s economic development.

Pham Minh Tuan, Brokerage Manager of Saigonbank Berjaya Securities Joint Stock Company (SBBS) analysed that when Vietnam’s economy has developed, there will be an inflow of foreign investment in Vietnam through both direct and indirect channels.

Indirect investment can be shown through the purchase of shares of Vietnamese companies or through the acquisition and merger of foreign enterprises. “Joining the TPP will help the country seize huge opportunities in attracting indirect investment capital from foreign investors”, said Mr Tuan.

EuroCham helps business leaders stay connected

The European Chamber of Commerce (EuroCham) is helping local business leaders stay connected with their counterparts in the EU to offer support and leadership in managing the challenges of integration.

“As businesses expand internationally, they become more complicated and difficult to manage,” said EuroCham Chairwoman Nicolo Connolly, and that’s why her organization has organized a series of activities to help.

Our members tell us that keeping them informed of business issues and events in the country is one of the biggest benefits they receive from their membership. EuroCham is the best source to find out what is going on and how to get involved.

The EuroCham news is published regularly and contains announcements related to networking events, business tips, seminars, government updates, community issues and other member activities.

Currently, EuroCham has 890 members and rep offices in Hanoi and HCM City. It has business representatives from 28 European countries and serves as an important bridge for Vietnam and EU business leaders.

In addition, Connolly said it provides businesses a perfect opportunity to market their products and services free to other EuroCham members and serves as a tremendous resource for them.

Hanoi home cleaning service receives seed funding

Jupviec.vn, a start-up that makes it easy and affordable to have your home cleaned, has announced it has received seed funding from Cyberagent Ventures, a Japanese venture capital firm.

Our company has been cleaning homes in Hanoi since 2012 and currently employs more than 200 staff meeting the needs of over 10,000 customers per year, said a company representative.

Our commitment to exceeding our customer’s expectations has been unwavering and we conduct extensive background and drug screening of all of our employees for our customers’ security, protection and peace of mind.

With the seed funding from Cyberagent Ventures in place, we hope to expand our services in Hanoi and bring them to Ho Chi Minh City and other locations throughout Vietnam and Southeast Asia in 2016 and beyond.

Vietnam steel producers divided over probe into cheap imports

Not long after the Ministry of Industry and Trade launched an investigation into steel billet imports following a request of four major producers, many other companies are worried that it may lead to high punitive taxes on imports and eventually hurt their business.

Unlike the four producers that called for the probe against cheap imports, other steelmakers said they depend on imported semi-finished products and increases in input costs will squeeze profit margin.

This second group, including Australian-owned SSE and local Pomina, therefore urged the government to call off the investigation and not to impose a high duty on steel billets.

Le Minh Hai, CEO of Vietnam Germany Steel JSC, a producer in the northern province of Vinh Phuc with an annual output of 350,000 tons, said given billets make up for 85% of input costs, higher taxes will lead to higher prices.

An undated photo of workers at a steel factory in Vietnam. Photo: Diep Duc Minh

Any safeguard measure against imported steel billets will seriously cause negative impacts on Vietnam's steel industry and consumers, news website Saigon Times Online quoted Hai as saying.

Last year Hoa Phat, Southern Steel, Thai Nguyen, and Vietnam-Italy Steel, which account for nearly 40% of Vietnam's steel billet output, claimed that increasing imports have hit local producers and demanded an investigation.

While Vietnam's steel billet imports saw a three fold increase from 2014 to 1.5 million tons last year, the latest figure was much lower than those of 2008 and 2009 when nearly 2.4 million tons were imported each year, industry data showed.

The trade ministry's investigation will wrap up in six months at the earliest.

Buyer, distributor in dispute as maggots found in milk

A consumer protection association in southern Vietnam has failed to resolve a dispute between a local dairy dealership and one of its buyers, who found maggots in nearly a dozen milk boxes it distributed.

On November 15, 2015, Nguyen Thi Ngoc Le, who runs a grocery store in Binh Phuoc Province, bought 40 cardboard boxes of TH True Milk from a dealership, Quang Vinh Phat, for VND12.5 million (US$558).

The products were still two months from the expiry dates at the time of purchase, according to the buyer.

Le then sold four four-box packs to a customer, who came back a few days later to complain about the product.

The buyer said the milk boxes in two out of the four packs she had bought were distorted from inside, while the milk released a foul smell and contained maggots.

Le reported the case to the province’s consumer right protection association, which held a meeting to resolve the case on January 18.

At the meeting, a representative from the Quang Vinh Phat dealership said it is only in charge of distributing the products, so the manufacturer, TH True Milk, headquartered in the north-central province of Nghe An, should be held responsible.

The dealership also suggested compensating 50% of the value of 40 cardboard boxes of the milk for Le, but she turned down the offer.

The consumer association eventually decided to transfer the case to a higher-level body for consideration.

The maggot-in-milk dispute has occurred at a time when the public has yet to forget similar cases in products produced by Tan Hiep Phat Group, which has repeatedly received quality complaints over its energy drinks and bottled herbal teas.

A consumer was jailed for seven years in December, for trying to ‘blackmail’ the drink maker using a bottle containing a fly.

The public has therefore spoken highly of Le’s decision to contact the consumer protection association in the first place, instead of opting for a compensation request directly from the manufacturer.

TH True Milk has so far made no official comment on the incident in Binh Phuoc.

Danang farmers benefit from growing flowers in ‘golden’ land

Dozens of farmers in the central city of Danang have been able to earn good incomes from growing flowers on unused land pieces at ‘golden’ locations while beautifying the hub at the same time.

Flower farms seen along such streets such as April 30, Luong Nhu Hoc, Nguyen Huu Tho and Huynh Tan Phat, located in Hai Chau District, or on unused land plots in residential areas in Son Tra and Cam Le Districts, are now ready to bloom in time for Tet (Lunar New Year).

Before and during Tet, which will kick off on February 8, flowers and fruits are traditionally used for decorations, with festive preparations usually beginning around one week before the official Tet date and lingering for another week after that.

The flower beds have created stunning spectacles for the land lots, which are worth several billion dong apiece (VND1 billion = US$44,076).

Farmers have borrowed unused land on Luong Nhu Hoc Street, a prime spot located in Hai Chau District in the central city of Da Nang, to grow flowers, with the backdrop being luxurious edifices.

Phan Van Huy and his family are currently tending to their flower farm, located on a 700-square-meter land plot on Luong Nhu Hoc Street in Hai Chau District in downtown city.

The deserted property has been zoned for a project.

Seeing that it is a huge waste to leave the land vacant, he sought permission from the local government to grow flowers on it.

“My initiative is warmly embraced by both the land owner and the government as flower beds add color and fragrance to the cityscape while the unoccupied property will be maintained as well,” Huy added.

The man has high expectation that his 1,000 tubs of daisies and a small amount of lilies and marigolds, intended for the Tet market, will earn him VND50 million (US$2,203) if the climate is on his side.

“The model has spared us land rents and transport fees. The prime location has also facilitated sales considerably,” Huy explained.

The business has landed his family a handsome income over the past five years.

Such farms require painstaking care and acute awareness of weather changes, which can make or break their crops.

As the “golden” land plots are situated next to arteries, T-junctions or crossroads, these growers do not need to rent stalls in Tet flower markets to display their produce for the year’s biggest festive occasion.

Nguyen Van Tri, who has been engaged in the farming model for more than six years now, is happy that his 2,000 pots of daisies, housed in a 600-square-meter land piece at the April 30-Nguyen Huu Tho T-junction, are thriving well.

A job as a construction worker earns him unstable wages, so he has grown flowers on the deserted plot of land every Tet season to earn a considerable additional income.

Tri is also expecting a bumper crop as many have placed orders for his daisies at good prices.

Meanwhile, Ho Van Chien, whose 4,000-square-meter flower farm is part of a nice plot on April 30 Street, used to reside on the street before being relocated by the government in 2006 to make the most out of the land bank.

He and several other households then sought permission to germinate flowers on their former land pieces, which remain vacant so far.

“We will return the property to their owners as soon as construction work starts,” Chien asserted.

He added that several of his regular outlet owners in central provinces including Quang Binh, Quang Tri and Thua Thien-Hue, have partnered with him or made early orders for his floral products.

“The outlet owners will buy all my flowers whether the crops are good or poor as previously agreed,” Chien added.

According to Tran Van Ly, deputy head of the Farmer’s Association in Hoa Cuong Bac Ward, where many of the prime location plots are located, a number of residents were relocated back in 2005.

With work yet to start on multiple housing projects, causing the land to deteriorate and subjecting it to serious pollution, the ward administration came up with borrowing five hectares of land for farmers to grow flowers and vegetables on.

The area was later expanded to 11 hectares, with more than 70 households engaged in the lucrative model, Ly added.

Inspired by Hoa Cuong Bac Ward’s early success, Danang Farmers’ Association sought approval from the municipal People’s Committee in lending vacant plots across the city to farmers in late 2008.

“The association has acted as surety for the farmers’ land loans, while the farmers have pledged to strictly conform to environmental protection regulations,” Nguyen Kim Dung, deputy chair of the municipal Farmers’ Association, said.

Before the model was approved, the deserted land plots looked unsightly and were particularly prone to pollution.

Land owners only need to give a notice of three to six months and the association will request the farmers to return the plots to them, Dung added.

Though the model is cost-effective and profitable, participating growers are constantly on tenderhooks over their inevitable eviction.

Dung added that his association has offered farmers orientation in moving their flower farms to other areas, which will be zoned into Danang’s future flower village.

Nguyen Phu Ban, head of the city’s Department of Agriculture and Rural Development, revealed that the city has zoned four areas totaling approximately 100,000 hectares in Hoa Vang District for the cultivation of flowers and greens.

“The department will offer incentives to farmers including bank loans and training to facilitate their relocation to the future flower village, and adopt measures to better promote the city’s floral varieties to other cities and provinces,” he stressed.

Vietnam's listed companies asked to publish information in English

Vietnam's securities regulator has asked listed companies to publish their information in both Vietnamese and English, and in accordance with international norms, saying it is an important step to attract foreign investment.

Speaking at a meeting in Ho Chi Minh City on January 19, Nguyen Son, chief of State Securities Commission of Vietnam, said his agency has been issuing legal documents in English for the same purpose.

The move is part of Vietnam's ongoing efforts to revamp the local stock market, increasing its position from "a frontier market" to "an emerging market," Son said.

Many international analysts have considered Vietnam's market as a "bright spot" in Southeast Asia. The benchmark VN-Index rose 6.1%to 579.03 at the end of 2015.

The overhaul started in 2012, just two years after the sector reached its peak and soon saw a downturn, forcing many brokerage firms to shut down.

Besides improving the market's transparency, the government has orchestrated three mergers among local securities companies.

Official figures showed that 80 securities companies are now operating in Vietnam, with total assets of VND74.7 trillion (US$US3.3 billion) and a combined equity of VND41.6 trillion (US$1.83 billion). That compares to 102 companies with total assets of VND107.2 trillion (US$4.74 billion) in 2010.

2016 Annual Report Awards for companies announced

Companies listed on the Ha Noi and HCM City stock exchanges have been invited to compete for the 2016 Vietnam Annual Report awards given away by the HCM Stock Exchange, Vietnam Investment Review and fund management firm Dragon Capital.

The awards are aimed at promoting professionalism, transparency and creativity among listed companies in filing their annual reports.

Companies wishing to participate should send in their reports to the two exchanges by April 20.

The awards are expected to be given away in July.

Hanoi apartment sales soar

The Hanoi apartment market segment recovered remarkably last year with 80% of 30,000 newly launched units snapped up, according to a recent Savills Vietnam survey.

In 2015, 23,300 of more than 30,000 apartment units which were launched in the northern market found buyers. A majority were mid-end apartments priced at around VND2 billion (US$89,000) a unit, Do Thu Hang, head of research and advisory services at Savills Vietnam, said at an event held in Hanoi last week to announce Hanoi’s 2015 property market report.

Hang ascribed strong apartment sales to improving consumer confidence in the real estate market and unattractive deposit rates which led investors to buy homes as an alternative investment vehicle.

Meanwhile, a report by CBRE showed the number of newly launched apartments in the capital last year jumped 70% compared to 2014. CBRE deputy director Nguyen Hoai An said apartment transactions in 2015 were higher than the sales record of 15,000 units set in 2009.

Prices of new condos were 3-5% higher than in the previous year while investors of some high-end villa projects revised up prices by 5-7%. The secondary market also saw prices rising, but by a mere 0.3% quarter-on-quarter and 1.1% from the previous year owing to more supply on the primary market.

Hang of Savills Vietnam estimated that around 24,800 condos from 48 projects would be put up for sale this year.

Regarding the market outlook, Hang said the market would be busy this year as demand in the first half of 2016 is projected to be high, mostly in the mid-end segment, and transactions would slow afterwards due to high supply.

Villas down, townhouses up

Hang said the townhouse segment saw more transactions in the fourth quarter of 2015 with 414 units sold, a two-year quarterly high.

Over 31,000 villas and townhouses at 120 projects were introduced to buyers during the quarter, with townhouses accounting for 85%. Villa prices on the secondary market dropped 1.4% from the previous quarter and 2% year-on-year while townhouse prices edged up 0.3% and 2.5% respectively.

CBRE also reported more newly launched products and successful transactions in the villa and townhouse segments. More than 1,200 new units were marketed last year, double that in 2014.

This year, Savills expected 16 new projects with over 2,700 villas and townhouses to be offered to buyers.

Retail, office markets strong

Savills Vietnam’s report said the retail and office markets in Hanoi also performed well in the last quarter and 2015.

Three new office projects in the last quarter provided around 81,000 square meters, leading to a supply increase of 5.5% against the previous quarter and 5.5% from the same period last year. Occupancy averaged over 83%.

This year, Hanoi is expected to have 16 new office projects with a total of over 260,000 square meters. The city would have an additional 287,000 square meters in 2017.

Meanwhile, an extra 1.1 million square meters was launched in the city in the last quarter, up nearly 15% against the third quarter and over 14% from late 2014. Rental increased by 13% and 4.2% respectively.

General Directorate of Energy asked to hasten BOT power projects

Minister of Industry and Trade (MoIT) Vu Huy Hoang requested the MOIT's General Directorate of Energy to accelerate the progress of BOT (build-operate-transfer) power projects to ensure the transmission and distribution of electricity for economic development.

The Minister made the request at a conference held by the General Directorate of Energy in Hanoi on January 18 to review its operations in 2015 and put forth plans for 2016.

He also told the General Directorate in co-ordination with the Electricity of Vietnam (EVN) to seek measures to raise more capital for projects bringing electricity to rural, mountainous, sea and island areas which is important to serving economic development and political tasks.

The General Directorate of Energy was also advised to work with the oil and gas sector and coal sector to handle difficulties including the sharp declines in oil prices and the flood situation.

Director of the General Directorate of Energy Dang Huy Cuong pledged that the General Directorate would continue to supervise and implement BOT power projects and would resolve issues arising in the negotiations of BOT projects.

Cuong added that many problems related to BOT thermoelectric power plants would be handled including the adjustment of the investment certificate of the Phu My 3 BOT plant, the supervision of the operations of Mong Duong 2 plant, financial arrangements for Hai Duong and Duyen Hai 2 plants, and the supervision of the building of Vinh Tan 1 plant among others.

Regarding power projects for rural and mountainous areas in 2016, the General Directorate will work with sponsors including the Asia Development Bank and European Union to mobilise funds for such projects and will carry out technical design appraisal and budget estimates for rural power projects invested by the EVN, Cuong noted.

The Director said that last year the General Directorate of Energy proposed the government supplement ten power projects to the national power development planning including five thermoelectric power plant projects, two renewable power projects and three power network projects.

The General Directorate also takes charge of managing and supervising 20 BOT thermoelectric power projects with a total capacity of over 24,000MW including three projects in operation, one project under construction and the remaining others being implemented.

Vietnam boost tourism links with ASEAN, China, Japan, RoK

The Prime Minister has given the green light for the signing of a Memorandum of Understanding (MoU) on enhancing tourism co-operation between ASEAN member states and China, Japan and the Republic of Korea (RoK).

With the Prime Minister’s approval, leader of the Ministry of Culture, Sports and Tourism will sign the MoU at the ASEAN Tourism Forum 2016 slated for January this year in the Philippines.

Last year, Vietnam welcomed nearly 8 million international holiday-makers, an increase of 0.9% from 2014’s figure. China became the largest tourism market of Vietnam with more than 1.78 million visitors, followed by the RoK with over 1.1 million vacationers.

As part of the efforts to enhance tourism links with regional countries, the Vietnam National Administration of Tourism plans to co-operate with partners in Laos, Thailand and Cambodia to develop tourism products connecting famous tourist spots in these countries.

Vietnamese firm produces pearls with natural patterns

Hoang Gia Pearl Co Ltd has announced that it has earned a patent for growing pearls with natural patterns.

The company has used such pearls to turn out its first jewelry collection, general director Ho Thanh Tuan said at a ceremony held Wednesday in HCMC to receive the Labor Medal from the State President.

Tuan said the pearl is grown with a special technique to produce natural patterns on its surface.

The National Office of Intellectual Property of Vietnam has granted Hoang Gia Pearl a patent certificate for this invention. The certification will be valid for ten years and can be extended for up to 20 years, Tuan said.

Oysters will be grown with normal techniques before pearls are taken out for decoration, he explained the process of making pearls with natural patterns.

Then those decorated pearls are placed back into the oysters which will be grown for another 12 months. More nacre will be created to cover the pearls and hide those decorated patterns under a layer of nacre, thus creating a natural beauty for the pearls.

These pearls, which are cultivated off the coast of the central province of Khanh Hoa, will be launched onto the market late this year, he said, adding the company is farming around five million oysters using this new technique.

Two new power plants start generation

Mong Duong 1 thermal power plant in the northern province of Quang Ninh and phase two of the wind power project in the Mekong Delta province of Bac Lieu have been commissioned, thus improving the nation's electricity supply.

Mong Duong 1 was inaugurated on Saturday, with two generators having a combined capacity of 1,080 MW and generating about 6.5 billion kWh of electricity a year for the national grid through the 500 kV Mong Duong-Quang Ninh transmission line.

This thermal power plant was invested by Power Generation Corporation No.3 and was installed by South Korean Hyundai Engineering and Construction Co. Ltd.

According to Vietnam Electricity Group (EVN), the facility is a stable source of power supply for the Northern Key Economic Zone, and it has also made Quang Ninh the country’s largest thermal power supplier with a total capacity of 5,150 MW, 18% of the nation's total.

Phase two of the wind farm project off the coast of Bac Lieu began generation with 52 turbines on January 17.

The Bac Lieu Department of Trade and Industry said the 52 turbines have a combined capacity of 62.5 MW, bringing the total capacity of wind energy projects in the province to nearly 100 MW with about 62 turbines.

The country’s total power generation capacity has now climbed to about 38,800 MW. Local power output and import amounted to 159.4 billion kWh last year, up 11.23% compared to 2014.

In 2016-2020, EVN will invest VND632 trillion (US$28.2 billion) in electricity infrastructure. In the past five years, VND492 trillion (US$21.95 billion) has been spent on electricity generation and transmission line projects to meet power demand growth of nearly 11% per year.

VFA: Less pressure for rice exporters this year

The rice export sector will feel less pressure this year than last year given some positive signs, according to the Vietnam Food Association (VFA).

The rice export volume carried forward from 2015 is small while the amount contracted for quarter one this year is higher than in the same period of previous years, said VFA.

Speaking at a review meeting in HCMC last week, VFA chairman Huynh The Nang said the nation’s 2016 total rice shipments are forecast to reach about 6.5 million tons, excluding the volume sent to China via border trade.

According to Nang, enterprises have secured deals to ship 1.2 million tons of rice in the quarter from January to March, 300,000 tons higher than in the year-ago period.

The first few months of year often see slack demand for the staple food, so prices of winter-spring grains normally dip in the middle of the crop and the Government provides low-interest loans for enterprises to stock up on rice.

According to VFA and the Ministry of Agriculture and Rural Development, the rice export prospect this year would be better than in 2015. However, rice prices and export volumes might depend on how the El Nino weather phenomenon unfolds this year.

Vietnam’s rice exports to the Philippines and Indonesia have been influenced by storms and floods over the past years. After natural disasters, these two major buyers tend to increase rice imports for storage to ensure food security and stabilize prices.

VFA forecast the rice price would pick up in this year’s second half when natural disaster-induced demand for rice surges.

Last year Vietnam exported 6.57 million tons of rice worth US$2.68 billion, up 4% in volume but down 4% in value against 2014. The export price slipped by almost US$34 to US$408 per ton.

Vietnam’s major rice markets are Asian countries. However, according to Tran Thanh Nam, Deputy Minister of Agriculture and Rural Development, the ministry is working with relevant agencies to assist exporters to boost shipments to Africa.

Nam said Africa with one billion people has high demand for 25% broken rice, which Vietnam can supply at reasonable prices. Nevertheless, the matter of payment is a major hindrance to Vietnam’s rice trade with Africa, he added.

“Vietnam imports large volumes of unprocessed cashew from Africa. While there is no efficient payment channel, exporters should consider exchanging goods. This might be a way out,” Nam said.

US$84 million disbursed for urban upgrade in Mekong Delta

The World Bank (WB) had disbursed US$84.57 million in official development assistance (ODA) loans for an urban upgrade project in the Mekong Delta as of mid-January this year, according to Duong Quoc Nghi of the Ministry of Construction.

Nghi, who is head of the Urban Development Agency at the ministry, said the amount accounted for 32% of the total, US$260.9 million.

Speaking at a mid-term review conference in Tra Vinh City last Saturday on the project, Nghi said the project’s original cost was US$292 million but later adjusted down to US$260.9 million as the exchange rate between the U.S. dollar and the IMF Special Drawing Rights changed.

According to the agency’s report, the project with 255 components has been carried out since August 2012 and would be completed at the end of 2017.

ODA disbursements in this project are slower than expected but have been stepped up in recent times. Since December 2015, an additional US$18 million has been disbursed, Nghi said.

Regarding reciprocal capital, VND1.66 trillion of around VND2.19 trillion in total has been disbursed for site clearance and compensation for families affected by the project.

Attendees at the conference spoke highly of the project’s efficiency. Vo Thi Hong Anh, vice chairwoman of Can Tho City, said the areas nearby the project sites have also benefited. For instance, Tham Tuong canal was severely polluted in the past but it is clean now, helping improve people’s living conditions.   

Victoria Kwakwa, WB Country Director for Vietnam, said Vietnam should evaluate the impact of the project on citizens’ lives. Relevant agencies in Vietnam and the provinces benefiting from the project should give proof of the project’s impact, she said.

The project has been conducted in six provinces in the Mekong Delta -- Ca Mau, Kien Giang, Can Tho, Tra Vinh, Dong Thap and Tien Giang.

DOC delays announcing final dumping margins on tra fish

The U.S. Department of Commerce (DOC) has delayed announcing the 11th Period of Administrative Review (POR 11) final results on dumping margins on frozen tra fish fillets imported from Vietnam from early-August 2013 to end-July 2014, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

VASEP said last week that on September 30, 2014, the DOC launched an administrative review of dumping margins for the above period and announced preliminary results of POR 11 on September 14 last year.

According to VASEP, the deadline for the DOC to announce the final results of POR11 was January 14, 2016. However, the DOC decided to delay the announcement for another 60 days. Therefore, the new date of announcement is March 14, 2016.

In the POR 11 preliminary results, the DOC used Indonesia as the surrogate nation for determining dumping margins as in the preliminary and final results of POR 10, and the preliminary tariffs for Vietnamese tra fish exporters.

Compulsory defendants including Hung Vuong Joint Stock Company and Thuan An Co. Ltd. were imposed tariffs of US$0.36 and US$0.84 per kilogram while voluntary defendants were required to pay US$0.6 per kilogram and the national general tax is US$2.39 per kilogram.

Large-scale cow breeding project launched in Ha Tinh

Late last week, Binh Ha Breeding Corporation in Cam Xuyen District of the central province of Ha Tinh inaugurated the first phase of a large-scale cow breeding project.

This is a key project in Ha Tinh covering an area of 5,000 ha located at Cam Xuyen and Ky Anh districts. Total investment capital for the project is over VND4.5 trillion (over US$200 million), and it aims to develop breeding of cows in accordance with high-end standards to export and for domestic consumption.

The project is expected to create 3,000 jobs for local labourers.

This is the largest livestock project so far, implemented in Ha Tinh and will be in the high-tech agricultural zone to create a momentum to develop economic growth for the province, according to Le Dinh Son, chairman of Ha Tinh People's Committee.

SeA Bank provides electronic tax payment

The Southeast Asia Commercial Joint Stock Bank (SeABank) has signed a corporate agreement with the General Department of Viet Nam Customs to provide electronic tax collection and payment guarantee services.

This service is for imported and exported goods and applies to enterprises, with outstanding advantages of timing and technology.

The service with short and straightforward procedures will benefit enterprises a lot. They will be able to assess and collate database of the Customs Department more easily and correctly, which helps in minimising risk.

Handico Tower office building for lease

The Ha Noi Housing Development and Investment Corporation (Handico) inaugurated its office building for lease known as Handico Tower in Ha Noi on Saturday.

The Handico Tower is located at the corner of intersection Me Tri-Pham Hung road of the new urban area Me Tri and Tu Liem districts west of Ha Noi. The office building covers an area of 5,376sq.m, has 33 floors and two basements for parking.

The modern designed tower has a total floor area of nearly 40,000sq.m, meeting the standards of a Grade A office, according to Truong Hai Long, general director of Handico.

Vinachem targets 10% growth in revenue, profit

Viet Nam Chemical Industry Group (Vinachem) is targeting revenue of VND50.5 trillion ($2.25 billion) and profits of VND1.8 trillion ($81.4 million) in 2016.

They expect growth of 10.7 per cent in revenue and a 10.2 per cent in profits, as compared to 2015.

Last year, the State-owned group reached total export-import turnover of $516 million including the export value of $268 million, up 18.2 per cent for the previous year and the import value of $248 million, down 5.1 per cent compared with 2014.

Currently, the group's 1.6 billion shares were traded on the OTC market.

Viet Nam Steel Corporation lists shares on UpCOM

The Viet Nam Steel Corporation (TVN) had its 678 million shares officially listed on the unlisted public company (UpCOM) yesterday.

At the price of VND10,000 (44 US cents) for each share, it is now the country's second largest capital company of this type after the Masan Resources (MSR) in the market with a capital of VND6.78 trillion ($302.4 million).

With its initial public offering in 2011, the Ministry of Industry and Trade now holds 93.93 per cent of the corporation while the last 41.2 million shares is held by other investors.

VNSteel, which has 10 subsidiaries and 24 affiliated companies, produced steel and other metals, and exploited iron ore. It also carried out import-export and trade in steel products, fuels, steelmaking materials, and scrap, in addition to rubber, petroleum, grease, gas and other materials.

TVN controlled 42 per cent of the building steel market in the country.

Compared to 2014, TVN produced 1.6 million tonnes billet last year, an increase of 23.7 per cent, and its finished steel products reached 3.3 million tonnes, up 27.7 per cent, with consumption capacity of 3.7 million tonnes, up 31.2 per cent, over 2014.

Last year, it reached a consolidated profit of VND150 billion ($6.69 million).

Hai Duong Water to launch IPO at Ha Noi Stock Exchange

Hai Duong Clean Water Trading One member Company will offer more than 2 million shares at its initial public offering (IPO) at the Ha Noi Stock Exchange on January 29.

The starting price of the IPO would be VND10,300 (46 cents).

The number of shares was equivalent to 6.52 per cent of the charter capital which will be VND319 billion ($14.22 million) after equitisation. Meanwhile, the State still holds 20.7 million shares or 65 per cent of the stake, of which 5.4 million shares will be distributed to strategic investors and 3.6 million shares will be sold to employees.

2016 set to be another strong year for Vietnam housing market

Vietnam’s housing market is expected to enjoy another good year after record sales in 2015 aided by improved economic conditions and infrastructure and lower interest rates.

According to the industry’s estimates, apartment sales in Hanoi hit around 28,300 units in 2015, a 70% rise from the previous year. In Ho Chi Minh City, the estimated number ranged between 24,000 and 36,000, an increase ranging from 50% to 100% depending on whose figures they are - the city real estate association’s or property consultancy companies’.

In the Ho Chi Minh City primary market, apartment prices rose 6.1% year-on-year in the fourth quarter, while in Hanoi, they were up 7.4%, according to property consultancy Jones Lang LaSalle.

Stephen Wyatt, head of JLL Vietnam, expected prices to continue upward this year, rising 1%-2% every quarter in Ho Chi Minh City.

Duong Thuy Dung, director of research and consulting at CBRE Vietnam, said home buyers are moving towards higher-end products.

“In 2009-14, affordable properties priced below VND1.3 billion (US$58,000) per unit constantly accounted for the largest proportion of successful transactions in Ho Chi Minh City.

“However, last year mid- to high-end properties, priced at VND1.3-VND5 billion, were the best sellers, accounting for over 75% of transactions.”

Wyatt said around 25,000 new apartments are expected to be launched in Ho Chi Minh City this year, with the high-end segment making up 30%.

Asked about the threat of a bubble forming this year, he said while he does not see “any cause for such concern”, it is necessary to “monitor the market.”

The change in sentiment among both developers and buyers mostly happened in 2015, he said.

“I have never worked in a country where the real estate market turns on and turn off very quickly like it does in Vietnam.”

He said developers, both foreign and local, should seek market research from consultancies before undertaking projects to ensure their developments are in line with what end users are really looking for.

“We don’t want to go back to the days of 2007 and 2010 when developers just built any product because the market was so hot and then failed to sell their products.

“Banks also play a very important role in the real estate market. They have to be very aware of market conditions as well in order to not provide credit to wrong developers to ensure the market does not overheat again.”

Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, agreed with Wyatt that there are no signs of a bubble yet.

“The government will continue its cautious credit policy this year, they won’t let property loans grow so fast like in 2007.

“In addition, I don’t see an oversupply in the property market at the moment.”

But he too said it is essential to keep a close eye on the market since the number of secondary market sellers [of new apartments] went up three-fold in 2015 and prices at some high-end projects rose “quite sharply”.

Marc Townsend, managing director of CBRE Vietnam, warned: “When the market grows too big, too fast and overhyped, it easily derails. Be fearless, not foolish.

“It is wise to open training centers for property sales persons, who have not received as much training in technical details as car sales persons and yet are preparing for the next level of competition with significantly wider supplied options, increasing prices and larger client pool, particularly when the foreign buyers are involved.”

Taxi-hailing apps had a good ride in Vietnam last year

Mobile applications for cab hailing services such as GrabTaxi and Uber have been named Vietnam's biggest consumer hit last year by the Nikkei.

The ranking, part of the Japanese newspaper's annual list of Asia's biggest consumer successes, was based on its resident reporters' interviews and reports, its English publication Nikkei Asian Review has said.

Taxi-hailing apps became trendy in Vietnam following the arrival of the US-based service Uber in 2014, it said. Soon after that the Malaysia-based startup GrabTaxi entered the country, where taxis are so prevalent that they have been more than once blamed for worsening traffic congestion.

Riding on the popularity of smartphones, the services quickly became popular here. It forced many local taxi companies such as Vinasun to launch their own apps. Even the transport ministry planned to create its own Uber-like service.

Appota Corp. in March last year reported that the country had 22 million smartphone users.

 Investors show plenty of interest in Vietnam startups: report

At least 67 technology startups in Vietnam received funding last year, a sharp increase from 28 the year before, according to a recent report.

The number of deals may have been even higher since not every business published its information, news website Saigon Times said, citing a report released by Topica Founder Institute, an accelerator that offers training courses to startup founders.

About 25.8% of the deals were in the form of seed funding, mainly provided by foreign investors, it said, noting the financial and educational technologies sectors continued to attract strong flows.

Four known cases of Series C funding - a round of funding that takes place once businesses prove to be less risky and shows the potential to scale up - were worth at least US$10 million each.

The biggest deal was between iCare, a retailer of essential products and services for workers, and San Francisco-based Unitus Impact, rumored to be worth more than US$20 million, it said.

It was followed by one between Huy Vietnam and US fund Franklin Templeton, which pumped US$15 million into the restaurant chain operator as part of its US$3-billion plan for the Vietnamese startup over the next five years.

Coc Coc, a Vietnamese-tailored browser and search engine, received US$14 million from German-owned Hubert Burda Media.

The other big deal was between restaurants rating and location website Foody and the US's Tiger Global Investment, though the deal size was not disclosed, Topica said.

Many think that with the economy still recovering, investors would become less interested in startups, but in reality new Vietnamese businesses have become increasingly lucrative in their eyes, Pham Minh Tuan, manager of Topica Edtech Group, told Saigon Times Online.

Besides a US$3-million venture fund established by local IT giant FPT, several foreign funds have entered Vietnam with long-term rather than one-off plans, he said.

Silicon Valley venture capital firm 500 Startups, for instance, is now backing eight local companies.

However, he said, 90% of recent Vietnamese startups have shut down for various reasons.

KasaGrand furniture store opens in Hanoi

On January 16, the KasaGrand furniture store opened in Hanoi on Tran Duy Hung Street at the Grand Plaza selling furniture imported from France, the UK, Italy, Denmark and Sweden.

The store’s 15,000 square metre showroom showcases dozens of world famous brand names along with many domestic products including carpets, towels, blankets, wood tiles and flooring.

Whether your decorating your home, a second home in the country, a cottage on the beach or a contemporary loft in the city, this is the store for you.  It offers affordable pick-up and delivery and of course, friendly service.

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