Vietnam’s 2018 gross domestic product (GDP) growth is forecast at 6.83%, backed by many favorable factors, according to the National Center for Socio-Economic Information and Forecast (NCIF).

The center under the Ministry of Planning and Investment noted that economic indicators in the first quarter of this year show marked improvements in various fields, according to the Voice of Vietnam radio station website Vov.vn.

“Together with a recovery in agriculture, the outstanding performance of the processing and manufacturing sector was evident given the growth rate of 17% in the first two months of the year, and was the key factor behind the first-quarter overall growth,” said Dang Duc Anh, head of the Analysis and Forecast Division at NCIF.

The center forecasts the first-quarter economic growth is likely to reach 6.23%, up from 5.15% in the year-ago period. Meanwhile, the GDP growth rates for quarters two, three and four are estimated to rise gradually to 6.61%, 6.98%, and 7.21% respectively.

Overall, NCIF expects the all-year GDP growth rate to expand 6.83%, or 0.12 percentage point higher than its earlier forecast in December last year. Notably, the manufacturing-construction and service sectors may grow by 7.96% and 7.52% respectively this year.

That the Government makes much effort to improve the business environment and stabilize macro-economic policies is regarded as one of three crucial factors which will have positive spillover effects on economic growth in the coming quarters, Anh said.

The Government’s efforts will help boost confidence in domestic and foreign-invested enterprises, thereby increasing more investments in production and business activities, and drawing more direct and indirect capital flows to the national economy.

He added major projects in the processing and manufacturing sector are likely to be executed in an effective manner.

Besides, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to which Vietnam is a signatory will further spur confidence, bringing about positive impact on investment activity.

However, NCIF economists also warn of some risks and challenges in the economy. Although inflation is now under control, considerable pressure has been felt, due mainly to price adjustments in public services, prices on the international markets, and monetary policy changes.

A sharp pickup in the consumer price index in the year to end-February should be closely watched. Otherwise, inflation will rise by over 4.5% against the target of below 4%, affecting the economic growth and economic balances. The low disbursement in public investments is also a negative effect on growth.

2018 Vietnamese high-quality goods fair to open on April 26

The 2018 Vietnamese high-quality goods fair will be held at Phu Tho Stadium in Ho Chi Minh City’s District 11 from April 26-May 1.

More than 200 enterprises featuring over 450 display booths have registered to participate in the week-long fair.

The large-scale event will show high-quality products in various fields, such as home appliances, fashion items and food. It is a chance for local firms to introduce their products to customers as well as make all efforts in improving goods’ quality to compete in the international market and integrate into the global supply chain.

The annual fair held by the Business Association of Ho Chi Minh City (HUBA) aims to mark the Death anniversary of the Hung Kings, the National Reunification Day (April 30) and International May Day (May 1).

Vietnam needs VND 860,093 bln to build North-South expressway network

Directorate for Roads of Vietnam (DRVN) yesterday said that it had submited to the Ministry of Transport the project on adjustment of the development plan of Vietnam expressway network to 2020 and its strategy for achieving 2030 target.

The project was based on the traffic volume of several high-speed axises and transport corridors that have faced an increase of traffic load compared to the previous forecast.

Accordingly, the eastern and western axes of the North- South Expressway will be built with a total length of 3,096 kilometers in the period of 2020- 2030. In particular, the eastern axis consists of 27 sections with its total length of 1,827 kilometers and the western axis consists of 24 stretches with its total length of 1,269 kilometers.

The highway system in the North includes 16 routes with its total length of 1,683 kilometers while the highway system in the Central and Central Highlands regions consist of four routes with total length of 316 kilometers. 

 The southern expressway system consists of seven routes with total length of 1,048 kilometers.

 The total length of the country’s expressway system will be 6,814 kilometers.

 The project is expected to need VND 345,167 billion (US$ 15.1 billion) in the period 2018- 2020, and VND 514,926 billion (US$ 22.6 billion) beyond 2030. Thus, the total investment would be about VND 860,093 billion (US$ 37.7 billion). 

The investment capital for the project will come from various sources including the state budget, government loans or loan guarantee, issuance of bonds…

In order to attract investment from other economic sectors, including foreign investors, the Directorate for Roads of Vietnam suggested the relevant ministries and agencies to expeditiously complete the policy mechanism, amendment and supplement for the regulations on financial support policy, taxes, prices, fees, franchises to increase the commercial viability of the project, ensure the satisfactory benefits of investors ...

Hanoi publicises 500 firms with prolonged insurance debts

The Hanoi Social Insurance has announced the list of 500 enterprises which failed to pay social premiums for their employees from 6 to 24 months, worth VND322,8 billion (over US$14 million).

According to the Penal Code of Vietnam, enterprises evading social, health and unemployment insurance of employees might be sentenced to 7 years in jail and penalized up to VND1 billion.

In the published list, VIT Garment Company (Me Linh District) owns the highest debt, with more than VND18,7 billion (roughly US$823,000) of 900 labourers in 16 months.

Among those, four businesses with social insurance debt exceeding VND10 billion include Bridge Joint Stock Company No.12 with VND11,8 billion (US$519,200) in 14 months, Investment and Construction joint stock Company No.4 with VND11 billion (US$484,000) in 24 months, Civil Engineering Construction Corporation No 1 with VND10,5 billion (US$462,000) in 23 months, Song Tich Irrigation Company Limited with VND10,1 billion (US$444,400) in 10 months.

Besides, some enterprises have only around VND100 million (US$4400) in debt but extends their payment up to a year.

Meanwhile, labourers in these firms are not granted with any welfare or social, health and unemployment insurance.

Business dissolution or bankruptcy are reasons for prolonged debts of those enterprises. In the first 2 months of 2018, Hanoi Social Insurance inspected and checked more than 280 businesses in debt of social and health insurance.

Emirates Airlines launches cheap flights from Vietnam to int’l destinations

Emirates Airlines has announced its promotional program on international routes from Vietnam to other countries.

Accordingly, a ticket from Vietnam to Dubai will be from VND13,270,000 (US$577). Airfares on flights connecting Hanoi and Ho Chi Minh City with Paris, London, New York, Boston, Los Angeles will be respectively VND 18,100,000; VND20,980,000; VND22,820,000; VND25,220,000 and VND25,740,000.

The promotion program will officially run from March 12-3 for passengers who plan to travel from now until November 30.

Emirates Airlines launched first daily direct flights between Ho Chi Minh City and Dubai in 2012 and daily non-stop flights from Hanoi to Dubai in 2017, using Boeing 777-300ER.

Emirates operates to 141 destinations in 75 countries across six continents from its hub in Dubai, including 39 destinations in Europe and 12 places in America.

Hoa Phat Group not afraid to compete with Formosa

One of the leading Vietnamese private steel makers, Hoa Phat Group put down concerns over competition with Taiwanese Formosa project as well as the recent US tariff threats on steel and aluminum imports.

Tran Tuan Duong, general director of Hoa Phat Group, told the corporation’s annual general shareholders’ meeting on March 23, 2018 that the upcoming Hoa Phat Dung Quat steel complex is not inferior to Formosa’s and will not lose the competition.

“The investment rate of Dung Quat project is only one third of Formosa,” he added.

For 2018, the group set the priority to carry out Hoa Phat Dung Quat steel complex on schedule.

Located in Dung Quat Economic Zone, the project has a capacity of four million tonnes per year and a total investment capital exceeding VND50 trillion ($2.2 billion).

It is expected that the project will be completed by the end of 2019. Once in operation, the project will generate about $2 billion in revenue, creating jobs for 8,000 people.

On the topic of US tariffs on steel and aluminum imports, Duong said that the group has we diversified its export markets and the US is only one of them.

According to the general director, Hoa Phat Group does not put all their eggs in one basket.

US President Donald Trump has signed an order to impose a 25 per cent tariff on imported steel, and 10 per cent on imported aluminium. The tariffs are to take effect within 15 days. The order exempted Canada and Mexico—both major sources of imports. It also leaves room for other countries to negotiate exclusions from new tariffs.

In 2018, Hoa Phat expects to reach VND8.05 trillion ($357.7 million) in after-tax profit.

Its core business, including the production of construction steel, steel pipes, and coated steel, contributed the most to the high revenue and profit, accounting for nearly 90 per cent of the total revenue and profit of the group.

In 2017 the group exported more than 162,000 tonnes of steel bars and rolled steel to the US, Canada, Australia, and Japan, as well as Malaysia and Cambodia.

In terms of real estate, Hoa Phat handed over its Mandarin Garden 2 residential project in Hanoi to homebuyers, while expanding industrial zones in Hung Yen. It also started construction of Bac Pho Noi Urban Area and 70 Nguyen Duc Canh apartment building.

EuroCham suggests ways to ameliorate investment climate

Co-Chairman of the European Chamber of Commerce in Vietnam (EuroCham) Nicolas Audier has suggested removing trade barriers and cutting down tariffs in order to improve investment climate for European businesses keen on increasing foreign direct investments (FDI) in Vietnam.

In his remarks at a ceremony to present the 10th edition of the White Book 2018 in Ho Chi Minh City on March 21, the EuroCham official said that the EuroCham will help Vietnam improve its business environment , thus enabling enterprises of both sides to capitalize on the advantage of the EU-Vietnam Free Trade Agreement (EVFTA), which is set to become effective to the fullest extent this year.

The EU is currently a leading partner of Vietnam across a variety of fields such as investment and trade. Last year, the EU was the second largest importer of the Southeast Asian nation with a total import value of US$38.2 billion. Meanwhile, Vietnam  imported US$12 billion worth of products from the EU countries. 

Dinh Ngoc Thang, Deputy Director of the Ho Chi Minh City Customs Department, said that the White Book will help state management agencies  fully grasp the market trend to revamp regulations on a rational basis to facilitate foreign investors' operations.

According to Guru Mallikarjina, Vice President and Managing Director of Bosch Vietnam, thanks to its efforts to improve business climate, Vietnam has been a magnet for FDI businesses, including those from the EU.

The country has been right on track to draw FDI, and investors can make their stronger presence in other sectors such as human resources training, smart city building, infrastructure development and green growth besides business operations.

Record number of exhibitors to take part in Saigontex

More than 1,100 domestic and foreign businesses have registered to take part in the Vietnam Saigon Textile & Garment Industry Expo (Saigontex 2018), which is set to take place in Ho Chi Minh City from April 11-14.

Exhibitors from 20 countries and territories including China, Canada, Belgium, and France will display their products and services in an exhibition space covering more than 31,000sq.m.

Saigontex 2018 will provide Vietnamese textile and garment businesses with the opportunity to research and source modern machines and equipment manufactured in industrialized countries. It will help them in preparing investment orientations for materials and new technologies, assist them in meeting the needs of domestic and foreign customers, improving product values, and in promoting the development of the Vietnam textile and garment sector in the international integration process.

The expo will not only serve to introduce new technological equipment designed to satisfy production demand of domestic businesses but will also encourage textile businesses and fashion designers to invest in their development and create new initiatives.

Fashion collections from designers in the Fashion Design Institute (FADIN) such as Thanh Danh, Vu Viet Ha, Tuan Nguyen, and Phuong Tra, as well as those from famous brands such as Belluri (Corporation 28), Toan Thinh Silk (Toan Think silk textile company), F.House (Phuong Dong Garment JSC), THECOSMO (the Cosmo Vietnam), Handee (Handee Company Ltd), and V-SIXTY FOUR (Viet Thang Jean Company) will be introduced at the event.

The textile and garment sector has contributed significantly to the country’s export growth in recent years. Last year it earned nearly US$31 billion in export value, providing a large chunk of the country’s total of US$213 billion. Such exhibitions have always drawn a lot of attention from both domestic and foreign businesses.

TAEL Partners increases investment in Vietnamese companies

TAEL Partners—one of the leading Southeast Asian investment managers headquartered in Singapore—is looking for more domestic partners from Vietnam.

In its annual investor conference held in Ho Chi Minh City on March 21-23, around 100 domestic and international investors attended the presentation of TAEL Partners’ investment plan.

According to Michael Sng, CEO and managing partner of TAEL Partners, Vietnam has proven to be a key investment destination for TAEL Partners. The company aims to bring its investments in Vietnam to regional platforms to forge strategic alliances with other companies in the ASEAN to create regional giants.

“We also hope to promote ASEANness among our business owners so that we can learn best practices from each other, leveraging each other’s comparative advantages and strengths. Further, as a private equity fund, we are providing longer term capital to our business partners in the ASEAN, particularly in the fastest growing markets like Vietnam. While we seek to achieve superior financial returns, we would want to have a strong social impact and improve the quality of life for our ASEAN citizens. It will make a difference for them," Sng said.

TAEL Partners presently manages over $1 billion of assets under management, with its investor base made up of institutional investors, sovereign wealth funds, family offices, and foundations from Asia (in particular the ASEAN), North America, Europe, and the Middle East.

TAEL Partners is now in its second fund (TAEL Two) and since 2013, the fund has invested and committed close to $175 million in eight companies in Vietnam, across different sectors like healthcare, food and agriculture, education, consumer distribution, transportation, and real estate.

With strong economic growth driven by the growing middle class along with supportive and attractive policies for foreign investment, Vietnam will continue to be one of TAEL Partners’ key target markets.

TAEL Partners intends to contribute further and work hand-in-hand with business owners in Vietnam and in particular Ho Chi Minh City to, among other things, enhance living standards, train future generations, and create a sustainable society.

Vinamilk to spend half of profit on dividend

Việt Nam Dairy Products Joint Stock Company (Vinamilk) has announced plans to spend half of its total post-tax profit in 2017 on paying cash dividend.

The proposed dividend payment is included in the company’s files for the upcoming annual shareholders’ meeting, which is scheduled for March 31.

Vinamilk last year posted a yearly increase of 10 per cent in its post-tax profit, which reached VNĐ10.3 trillion (US$456.8 million).

Thus, the total dividend payout that Vinamilk may make for 2017 could reach VNĐ5.1 trillion.

The proposed dividend payout for 2017 is lower than the figure for 2016, which was equal to 83 per cent of the company’s earnings in 2016.

Vinamilk on August 31, 2017 made the first dividend payment for 2017, worth VNĐ2,000 (9 US cents) per share, and plans the second dividend payment of VNĐ1,500 per share on March 30, 2018.

The remaining dividend for 2017 is VNĐ1,500 per share. Vinamilk will finalise the list of beneficial shareholders on June 6 and make the final payment on June 26.

Vinamilk targets VNĐ55.5 trillion in total revenue for 2018 and VNĐ12.8 trillion in pre-tax profit.

The largest dairy producer also plans to make a dividend payment that is equal to 50 per cent of the post-tax profit made in 2018.

The first payment for the 2018 dividend is scheduled in the third quarter of this year, worth VNĐ2,000 per share, and the second payment is scheduled for May or June 2019.

In addition, Vinamilk plans to issue a maximum of 290.3 million bonus shares for its current shareholders at a 5:1 ratio, meaning each shareholder will receive one bonus share for every five shares he holds.

The share issuance will raise the firm’s charter capital by a maximum of VNĐ2.9 trillion to VNĐ17.4 trillion.

At the upcoming shareholders’ meeting, the management board will propose that shareholders increase the number of management board members for the 2017-21 period to 11 members from the current nine members.

Vietnam seeks to export more agricultural products to RoK

A Vietnam - the Republic of Korea (RoK) business exchange was held in Hanoi on March 22, aiming to introduce Vietnam’s agricultural products to two major retail firms of the RoK – K-holdings and Coupang.

The RoK firms were interested in importing spices, packed products made of rice, frozen seafood, dried fruits, coffee, chocolate, cashew, peppercorn, dried meat, fresh fruits, and other processed food products, from Vietnam.

Currently, the RoK is among important strategic partners of Vietnam and the country’s leading investor.

According to Do Kim Lang, Vice Director of the Trade Promotion Agency under the Ministry of Industry and Trade, thanks to the Vietnam-RoK free trade agreement, from December 2015, the RoK has become the third biggest trade partner of Vietnam after China and the US.

In 2017, two-way trade reached 61.5 billion USD, up 41 percent year on year, including Vietnam’s exports of 14.8 billion USD, a rise of 30 percent over 2016.

Popular Vietnamese products in the RoK included aquatic products, cassava and cassava products.

In the first two months of 2018, Vietnam earned 2.79 million USD in the RoK market, a surge of 44 percent over the same time last year, noted Lang.

Meanwhile, Nguyen Minh Duong, Director of Minh Duong company said that his firm is selling its products such as potato, sweet potato, cashew and dried products through such big distributors as Big C and Vingroup.

He said that Vietnamese farm products have been accepted in China and the RoK, adding that the firm has exported a large amount of products to the two markets and is seeking to expand the market.

Bui Viet Truong, Third Secretary of Office for Trade Affairs under the Vietnamese Embassy in the RoK said that each year, the RoK spends about 33 billion USD to import agro-fishery products.

However, he held that Vietnam should seek solutions to further its presence in the market as currently only five Vietnamese fruits are allowed to be sold in the RoK, including pineapple, coconut, dragon fruit, mango, and banana.

In the coming time, Coupang, the leading online shopping company of the RoK, will give a space in its website to introduce Vietnamese foodstuff. It aims to sell about 1,800 products of Vietnam via its website in 2019.

Experts advised that Vietnamese firms should pay greater attention to design and packaging of their products, while updating quarantine regulations in the market.

VN, Korean startups seek investment in smart technology

Start-ups of Vietnam and the Republic of Korea (RoK) introduced their technological products in Hanoi on March 22, in a bid to call for investments from potential investors in Vietnam and foreign countries.

This formed part of the “Global investment festival” held by the RoK-based K-ICT Born2Global Centre (B2G) and Vietnam Silicon Valley (VSV) Project.

Participating RoK firms brought to the fair smart warehouse technology for small- and medium-sized enterprises, driving risk assessment devices, and money transfer technology, among others.

Vietnamese startups focused on payment services for smartphones, online management platforms for businesses, and automatic farming technology.

On this occasion, B2G and VSV Accelerator signed a memorandum of understanding on cooperation.  

A VSV representative said the event will connect Vietnamese and RoK start-ups. The Korean side can find ways to enter the Vietnamese market, while the Vietnamese side can learn experiences from its Korean partners.

Vietnam, RoK firm sign irrigation cooperation deal

The Korea Water Resources Corporation (K-Water) will support and share experiences as well as technologies with Vietnam in dealing with water-related issues. 

An agreement to this effect was signed between K-Water and the General Department of Irrigation under Vietnam’s Ministry of Agriculture and Rural Development (MARD) in Hanoi on March 22. 

Accordingly, K-Water will assist the Vietnamese side in monitoring and operating reservoirs to reduce floods and clean water supply in rural areas. 

K-Water Vice President Park Won-cheol said the agreement will create a foundation for cooperation in irrigation between the two countries. 

K-Water has joined a number of irrigation projects in Vietnamese localities such as Phu Yen province and Da Nang city in the central region, he said, adding that the corporation is completing procedures for a water treatment project in the central province of Thua Thien-Hue. 

Vietnam and the RoK share many similarities in irrigation systems, thus K-Water wants to cooperate with the country in order to improve its irrigation systems, he noted. 

Park said following the signing of the deal, K-Water will dispatch its staff to Vietnam to work with the MARD on contents of the agreement. 

Deputy Minister of Agriculture and Rural Development Hoang Van Thang said Vietnam is running many irrigation projects with the participation of the World Bank (WB) and the Asian Development Bank (ADB). 

The ministry will create the best possible conditions for the two sides to fruitfully cooperate with each other, thus helping improve irrigation systems in Vietnam, he pledged.

Vietnamese, RoK start-ups angle for capital

Ten start-ups of Vietnam and the Republic of Korea (RoK) introduced their high-tech solutions to domestic and foreign investors at the Global Demo Day held by the Vietnam Silicon Valley Accelerator (VSVA) and the K-ICT Born2Global Centre in Hanoi on March 22.

The start-ups have a chance to call for an investment of 20,000 USD from the VSVA and millions of USD from foreign accelerators.

Vietnamese firms showcased solutions for payment services on smartphones, online management for enterprises and automated hydroponic farming to improve productivity.

Meanwhile, the RoK side focused on presenting smart warehouse technology for small and medium enterprises, driving risk assessment devices and money transfer technology.

According to VSVA Director Han Ngoc Tuan Linh, the event aimed to promote cooperation among start-ups from Vietnam and the East Asian country.

As capital provided by Vietnamese investors is limited, the Vietnamese start-ups should work to attract investors from Singapore, the RoK and Malaysia, among others, he added.

Vietnam, Oman look to fostering investment cooperation

Sixty local firms and 10 Omani enterprises operating in various fields sought investment partnership at a seminar held in Hanoi on March 22 by the Ministry of Industry and Trade (MoIT), the Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam-Oman Investment (VOI) joint-venture.

Addressing the seminar, MoIT Deputy Minister Cao Quoc Hung called on the Oman side to organise more visits of enterprises to Vietnam to explore trade and investment opportunities in the country. 

He urged Vietnamese firms to pay more attention to studying the Oman market through field trips to and exhibitions in the Middle Eastern nation.

Hung said many Oman businesses are interested in the Vietnamese market, while local firms have also made inroads into the Oman market. 

He highlighted the fruitful cooperation between the two countries in recent times, saying two-way trade has witnessed impressive growth, hitting 120 million USD in 2017, an increase of 122 percent year-on-year. 

At the seminar, the Oman side said the country is considering importing food from Vietnam, expressing the hope that the Vietnamese side will open bonded warehouses in Oman, thus facilitating the distribution of Vietnamese goods in Oman and exports to adjacent markets. 

Le Thai Hoa, Deputy Head of the Asia-Africa Market Department under the MoIT said the ministry is creating favourable conditions for the two sides’ enterprises to learn about each other’s market.

The ministry is working with ministries and sector on a plan to open a direct flight between the two nations, towards promoting economic and culture exchange, he noted.  

The VOI is considered an outstanding model for economic cooperation between Vietnam and Oman. As a joint venture company between the Oman State General Reserve Fund and Vietnam’s State Capital Investment Corporation, VOI was established and operated on the basis of agreement and support from both sides. Since its initial commitment of 100 million USD in 2009, VOI doubled its capital in 2014. 

Abdullah Al Harthy, Chairman of the Board of Directors of VOI, also a member of the Vietnam-Oman Joint Committee, affirmed his country has global thinking on economic cooperation, even though it is only a small country in the Middle East. 

Oman sees long-term prospects for economic cooperation in Vietnam, he said.

VOI has focused on Vietnam's competitive sectors and those have contributions to long-term sustainable development, such as electricity and logistics, he added.

On the occasion, the VCCI and its Oman counterpart –  the Oman Chamber of Commerce and Industry (OCCI) signed a memorandum of understanding on cooperation, aiming to make it easier for the two sides’ enterprises to connect in the future.

Major Swedish businesses to visit Hanoi in May

A delegation of big businesses from Sweden will visit Hanoi in May to seek to help promote sustainable public transport in the capital city, according to Swedish Ambassador to Vietnam Pereric Hogberg.

The ambassador met Chairman of the Hanoi People’s Committee Nguyen Duc Chung on March 22, informing him of the visit and seeking the municipal authorities’ assistance to the delegation.

He noted that Swedish businesses have been increasingly interested in the investment environment in Hanoi and will share their experience contributing to the city’s sustainable transport plan.

Chairman Chung thanked the diplomat for bridging businesses of the two countries, affirming his support and saying he will work with the Embassy of Sweden in Vietnam to realize plans, programmes and seminars on public transport as the city is heading to become a smart city with sustainable growth and being adaptive to climate change.

At present, Hanoi is reforming its public transport, looking to use high-quality buses imported from Europe, especially from the Volvo group from Sweden, with a view to turning people’ interest in using public transport means.

As the two countries are looking toward the celebration of the 50th anniversary of their diplomatic ties in 2019, Ambassador Pereric Hogberg expressed his hopes that more celebrative activities will be held in Hanoi, like cultural events at the Hoan Kiem (Returned Sword) lake in the heart of the city.

Chairman Chung said he supports and will provide assistance for the organization of the activities.

Exports hit $200 billion last year: report
     
A report on last year’s imports and exports was released on Thursday by the Ministry of Industry and Trade to provide accurate information on the country’s trade to management agencies, policymakers and businesses.

It includes an overview of the Vietnamese and global economy, Viet Nam’s import-export situation, its markets, in addition to import-export policies and mechanisms and information on free trade agreements.

Speaking at the launch ceremony, Deputy Minister Tran Quoc Khanh said compared to the first ever report released last year, this year it provided more details on import-export targets for each product and market and was also more scientifically arranged.

The report is a basic database to help enterprises make strategic plans, expand their trade, enhance their competitiveness and integrate with the global market, he said.

Last year was a good one for Viet Nam with its exports crossing the US$200 billion mark for the first time and ending at $214.02 billion, a year-on-year increase of 21.2 per cent and well above the Government’s target.

Besides improving the trade balance, it also helped promote production and create jobs, he said.

The deputy minister said last year marked a transition in exports from raw materials to manufactured and processed goods.

This is in line with the target set under the import-export strategy for 2011-20, with a vision to 2030, he said.

Exports of processed goods accounted for over 81 per cent, followed by agricultural and fisheries items with over 12 per cent, he said.

Tran Thanh Hai, deputy director of the ministry’s import – export department, said last year’s trade surplus of $2.92 billion was the highest ever.

The surplus was mainly with developed countries like the US, EU and Australia, which have strict requirements for imports.

Truong Dinh Hoe, general secretary of the Viet Nam Association of Seafood Exporters and Producers, hailed the report, saying it greatly helps businesses, industries and business groups orient their export and business activities.

He called on the ministry to include more information on trade protectionism and barriers, and offer solutions and recommendations to overcome them.

The fisheries sector also needs information about the Chinese market, a promising one for Vietnamese firms, he said.

Tran Viet Anh, vice chairman of the HCM City Union of Business Association, said the report compilers should provide statistics on the key import and export items of each province and city to help them make plans for developing their products and sectors.

This would also help investors choose their ideal investment destination, he pointed out. 

VN-RoK’s trade promotion can reach new heights
     
Opportunities to strengthen trade ties between Viet Nam and the Republic of Korea (RoK) rose during a variety of partnership programmes held on March 22, during President Moon Jae-in’s state visit.

The Ministry of Industry and Trade (MoIT) organised a Viet Nam-RoK business programme in hope of enhancing bilateral trade activities and cooperation between the two country’s enterprises, via exchanges of information and investment promotion.

Do Kim Lang, deputy head of the MoIT’s Trade Promotion Agency, said since the 2015 Viet Nam-RoK Free Trade Agreement (VKFTA), the RoK has established itself as Viet Nam’s third largest trading partner, just behind China and the US.

In 2017, total bilateral trade turnover had reached US$61.5 billion, up 41 per cent year on year, he added.

Economic, trade and investment relations between Viet Nam and RoK have been constantly developing, with the latter now an important strategic partner and leading investor for the former.

Notably, in the field of agriculture, Lang’s department has focused on supporting Vietnamese enterprises to export to the Korean market, through commercial transaction programmes and exhibitions such as March 22’s event.

“I hope trade promotion programmes such as this will help firms from both countries understand each other better, in order to seek reliable partners and effective cooperation,” said Lang.

According to Bui Viet Truong, Third Secretary of Office for Trade Affairs under the Vietnamese Embassy in the RoK , the RoK spends an average of $33 billion annually on agricultural and aquatic imports.

This means Vietnamese firms can push for seafood and fruits exports to this market, beyond traditional goods such as shrimp, catfish, coconut or pineapple.

However, he warned when Vietnamese enterprises export products to the RoK, they must pay attention not only to quantity but also quality and packaging, especially with the RoK’s strict quarantine regulations.

Speaking to the Vietnam News Agency, Nguyen Minh Duong, director of Minh Duong One Member Co Ltd, said that his company has been distributed dried agricultural products in Viet Nam via modern distribution channels such as Big C or Vingroup, but he hoped to expand business to other markets such as China and the RoK in relatively large volumes.

The MoIT on March 22 oversaw a direct introduction of two large RoK retailers and distributors, K-holdings and Coupang Group, to a number of local agricultural producers.

Accordingly, the two RoK firms are in need of imports such as spices, sauces, rice products, processed seafood, dried meat cuts and fruits.

Both corporations’ purpose is to search for qualified Vietnamese agricultural products to introduce to the RoK’s market.

Coupang Group is considered Korea’s number one leading online shopping business, who also hopes to sell at least 1,800 Vietnamese products on their website by 2019, while K-holdings is a leading enterprise in the field of procurement and distribution of agricultural and food products.

Another promotion programme on March 22 was the Vietnam Silicon Valley Accelerator’s Global Demo Day, in collaboration with Korea’s Born2Global Centre, focusing on matching venture capitalists to potential startups between both countries. 

VietAd 2018 opens in Ha Noi
     
The ninth Viet Nam International Advertising Equipment and Technology Exhibition (VietAd) opened at the Ha Noi International Exhibition Centre on Wednesday.

VietAd is a premier event of the country’s advertising industry.

The three-day event provides a platform to 300 booths from nearly 100 domestic and international enterprises featuring the latest products and technologies in ultraviolet printing (UV flat, UV coil), thermal transfer printing, bending technology, LED advertising, automatic stamp and number, motion cutting technology for digital products and other new technologies.

Within the framework of VietAd 2018, the Viet Nam International Packing and Label Printing Exhibition is being organised as a bridge to connect enterprises specialising in machinery, equipment, material and services in the printing and packaging industry.

The events are being organised by Dong Nam Advertising and Commercial Promotion JSC, under the auspices of the Viet Nam Advertising Association.

Through many years of networking, VietAd has established partnerships with many major exhibitions in Asia and around the world, such as Sign Asia Expo-Bangkok Led and Digital Sign (Thailand), SGI (Dubai), Sign China, Shanghai APPPEXPO (China), DPES Sign and Led Expo (China), International Sign and Led Exhibition-ISLE (China), Print Pack and Sign (Singapore), KOSIGN (Republic of Korea), IPMEX (Malaysia) and CITPE (Hong Kong). 

CII to issue bonds worth US$52.6m
     
Management board of HCM City Infrastructure Investment JSC (CII) has approved the plans of issuing total VND1.2 trillion (US$52.6 million) worth of corporate bonds.

CII will issue two million corporate bonds with a par value of VND100,000 each, worth total VND200 billion (US$8.8 million), in the next three months. The bonds have a year of two terms and are non-convertible and unguaranteed.

The issue aims to increase the company’s working capital, according to its filing to the State Securities Commission.

In addition to this, the company’s management board approved CII to expedite the issuance of approximately VND1 trillion worth of bonds guaranteed by an international financial institution.

Recently, CII also passed a number of reports prior to the annual shareholders’ meeting this year. Under the plan, the company targets a revenue of VND6.3 trillion and after-tax profit of VND1.21 trillion in 2018.

It also proposed shareholders to temporarily not pay dividends for 2017 and retain all profits for the new investment. The expected dividend rate in 2018 is 31 per cent per annum. From 2019 onwards, dividends are expected to be paid as in previous years, ranging from 12-20 per cent per year.

As of December 31, 2017, CII had more than VND2.22 billion in short-term debt and nearly VND7.17 trillion in long-term debt, including over VND1.34 trillion bonds.

Supermarkets to buy oversupply of farm produce
     
Supermarkets in HCM City plan to buy white radish from farmers in Hà Nội who are struggling to find outlets for their produce.

Saigon Co.op, for example, besides buying dozens of tonnes of white radish, is enhancing consumption of other farm produce such as kohlrabi, carrot, and cabbage planted in Hai Dương, which are at risk of oversupply like white radish.

Nguyen Thanh Nhan, general director of Saigon Co-op, said in addition to selling these agricultural products at its Co.opmart supermarkets and Co-op Food stores in Ha Noi, Saigon Co.op will transport them to the central region and to HCM City to sell at its stores.

Saigon Co.op expects to sell at least 15-20 tonnes of this farm produce each day at its retail chains, meaning that 450-600 tonnes of the products will be bought in one month.

Depending on the situation, Saigon Co.op will then continue to help farmers sell their produce.

Beginning on the evening of March 21, the farm produce was available at Co.opmart Ha Noi and Co.op Food stores in the capital city, with prices equal to the price bought from farmers, at VND2,500-6,900 per kg, depending on the kind.

On March 17, the Lotte Mart supermarket chain also began purchasing white radish and sold it at a price without profits to help farmers overcome difficulties.

As of March 22, the supermarket had sold more than 5 tonnes of white radish.

White radish is being transported to HCM City and the central region, and will be sold at all Lotte Mart stores from March 24.

The supermarket is expected to help farmers sell about 30 tonnes of white radish at its stores nationwide.

Viet Nam, RoK firms to boost technology transfer
     
Enterprises from the Republic of South Korea want to boost their co-operation with Vietnamese firms, especially ones working in the technology sector due to the huge potential in the Vietnamese market.

The statement was made by Kyu-Min Baek, director of global innovation at the Korea’s Innobiz Association, at the Viet Nam – Korea small- and medium–sized enterprises (SMEs) technology matching conference held in Ha Noi on Thursday.

The seminar was organised in the framework of South Korean President Moon Jae-in’s state visit to Viet Nam from March 22-24. The event is a chance for Vietnamese enterprises to access advanced South Korean products and technologies and promote opportunities for investment and business co-operation between enterprises from the two countries.

Through this event, Vietnamese businesses can meet and negotiate directly with Korean partners regarding the distribution of products and the transfer of Korean technology into Viet Nam and vice versa.

“There are many advantages in the co-operation of the two countries, such as the cheap labour costs in Viet Nam and the similar culture, although we need lots of time to study the market as well as discover the current situation of the Vietnamese market,” Ju-Yound Youn, president and CEO of Woosang Advanced Material Company told Viet Nam News.

At the first session of the business to business (B2B) conference on Thursday morning, a co-operation agreement was successfully signed between Viet Nam’s Vinh Phuc Investment Trading Company Limited and RoK’s Jeonwoo Precision Company Limited.

“It is the first time my company has taken part in this event. My company specialises in the supporting industry, therefore, one of our most difficult issues is technology and I think South Korean firms can help us deal with this,” said Pham Van Quyet, deputy director of Vinh Phuc Investment Trading Company Limited.

Viet Nam has now emerged as the South Korea’s fourth largest trading partner while the South Korea has become Viet Nam’s second biggest trading partner. Last year, the two countries saw bilateral trade reach US$63.9 billion, an increase of more than 40 per cent year-on-year.

In addition, South Korea is the largest investor in Viet Nam with an accumulated investment amount of $57.9 billion. Viet Nam is a crucial investment destination for the South Korea, which is evidenced by the fact that more than half of Korean businesses (some 5,500 out of about 8,600) operating in the ASEAN region have a presence in the country.

The event was organised by International Intellectual Property Agency (Investip) in accordance with South Korea’s Innobiz Association. It drew the participation of 10 Korean firms and some 60 enterprises from Viet Nam.