Vietnam capitalises on RoK development funding

Minister of Planning and Investment Nguyen Chi Dung has visited the Republic of Korea to attend a celebration of the Korea Economic Development Cooperation Fund (EDCF)’s 30th founding anniversary.

At the event, on behalf of the fund’s beneficiaries, Dung delivered a speech on how Vietnam has used international funding to fuel economic growth over the past 30 years.

He also put forth a number of measures to optimize the usage for improved outcomes. 

While in the RoK from September 5 to 8, the minister had a series of meetings with Minister of Foreign Affairs Kang Kyung-wha, leaders of the Ministry of Strategy and Finance, and representatives of the Korea International Cooperation Agency and Export–Import Bank of Korea.

At these meeting, discussions focused on measures to boost bilateral investment and trade, and effectiveness of the employment of official development assistance (ODA) and foreign direct investment (FDI) capital.

As part of his visit, Minister Dung chaired two dialogues with top RoK companies, which were interested in the Vietnamese market. The RoK businesses urged continued improvement of business climate in Vietnam and stressed their intention to further expand operations in the country.

Dung also held separated receptions for leaders of Samsung, LG, Huyndai Motor, and Lotte, among other RoK groups, who stated they considers Vietnam a strategic market and are committed to helping Vietnamese firms be part of their supply chains in the future.

In a sideline interview with the Vietnam News Agency, the official said the visit promises to open up a new chapter in the Vietnam – Rok strategic partnership.

E-commerce experts talk Vietnam’s future

Some top experts in payments, e-commerce and retail gave their insights into the future of online trading in Vietnam at a recent two-day seminar in HCM City.

The content and structure of Seamless Vietnam were designed to cover the entire omni-channel journey.

Participants heard experts speak about digital marketing, merchandising, pricing, and in-store technologies.

Others spoke about payments, staff training, multi-channel, call centres, home delivery, click & collect, supply chains, packaging, customer service, loyalty and retention, and product returns.

Attendees were from major Vietnamese banks and leading e-commerce and retail giants.

With a population of 95 million, the highest retail sales growth in Asia of 10.4 percent, an e-commerce market predicted to be worth 10 billion USD by 2020, and a regulatory environment increasingly opening up to foreign investment, there has never been a better time in Vietnam for senior executives from across the e-commerce eco-system to come together and discuss future strategies, partnerships and solutions.

The State Bank of Vietnam kicked off the conference with a keynote address on “Moving towards a cashless society in Vietnam by 2020.”

“Cashless payments have strongly increased in Vietnam recently with 65 banks providing internet banking, 35 others providing mobile banking and many other credit organisations launching electronic payments,” Tran Dinh Cuong, deputy director of the central bank’s HCM City office, said.

“The cash payment ratio has reduced to 12 percent in comparison with 14 percent in 2010 and the figure will be less than 10 percent by 2020.”

Le Anh Tuan, head of VietinBank’s electronic banking division, said: “Low fees and safe, secure, fast technologies are the two most important things to attract customers to electronic payments.”

Nguyen Phu Vinh, head of the HCM City Electricity Corporation’s business department, said his company has already tied up with 22 banks and eight fintech companies to collect electricity tariffs online.

“As of the end of July there were 1.7 million customers paying through banks and other credit organisations, accounting for 60 percent of our revenues.

“We plan to reach 100 percent by 2020.”

On the sidelines of the conference there was an exhibition of products and services offered by major players from across the payments, retail and e-commerce vendor communities.

It was the first time Seamless, Asia’s largest and longest running conference focused on cards and payments, was organised in Vietnam. Over 400 senior executives and experts attended the event. 

HCM City: Seminar seeks ways to attract more Malaysian visitors

A seminar discussing ways to lure more Malaysian tourists to HCM City took place on September 8 on the sidelines of the three-day International Travel Expo (ITE) HCM City 2017.

According to Euromonitor International, Malaysians spend big on shopping on overseas trips with over 25 percent of their total travel expenses that include air tickets, leisure activities, foods and accommodations. 

That news is a great opportunity for Vietnam’s tourism industry, said Dinh Ngoc Duc, Director of the market department at the Vietnam National Administration of Tourism.

Many tourist destinations in Vietnam, however, failed to satisfy the Malaysian tourists’ high demand for shopping.

Speaking at the event, director of Malaysia’s Travel Promotion Department in HCM City Abdul Hadi Che Man explained that a majority of Malaysians are Muslim who must strictly adhere to Halal guidelines in terms of foods, drinks and religious practice even when travelling abroad. But not many hotels and restaurants in Vietnam are able to meet such needs, he noted.

Delegates to the seminar suggested that Vietnamese tour operators need to better understand needs and habits of Malaysians to better serve them, for example, there should be more shopping centres and restaurants with Halal certificates and more tour guides who have good understanding of the needs of Muslim visitors.

The city’s tourism should offer more conveniences for Malaysian guests such as prayer rooms at international airports, Halal restaurants at hotels and shopping malls, and tour packages inclusive of Halal meals, Abdul Hadi Che Man said.

Malaysia was on the top 10 Asian tourist markets for Vietnam in the first eight months of 2017. Vietnam welcomed over 295,000 Malaysians during the reviewed period, up 17.1 percent from the same period last year and accounting for 3.48 percent of the country’s total international tourist arrivals.

First shipment of Vietnamese chicken dispatched to Japan

The first batch of Vietnamese chicken was exported to Japan at the Long An International Seaport in the southern province of Long An on September 9.

This is an important event to Vietnam’s agriculture sector and the partners in the supply chain. 

Japan is a very tough market, Minister of Agriculture and Rural Development Nguyen Xuan Cuong said, adding that after chicken, Vietnam is determined to seek to export pork and milk to this market.

Koyu & Unitek Co., Ltd, a joint venture between Australia and Japan in southern Dong Nai province, is in charge of shipping 30 tonnes of chicken wings, thighs and breasts to Japan, which are expected to arrive in Tokyo in 10 days.

The company has signed a long-term contract with the Japanese side in which Japan will import about 300 tonnes of chicken products per month, said Director General of the firm James Hieu.

According to Hieu, Japan imports over 900,000 tonnes of poultry products annually. In fact, Koyu & Unitek falls short of its Japanese partner’s real demand which exceeds 2,000 tonnes per month. 

The firm plans to increase capacity in the future by enhancing cooperation with farmers to raise chickens and expanding processing facilities.

Cashew exports in eight months fetch 2.2 billion USD

Cashew exports fetched 2.2 billion USD in the first eight months of 2017, a rise of 24.9 percent from the same period last year, according to the Ministry of Agriculture and Rural Development.

The sum was earned from 223,000 tonnes of cashew, a drop of 1.1 percent year on year.

Average cashew price in the first eight months of this year was estimated at 9,865.4 USD per tonne, up 27.2 percent over the same period last year and 20.3 percent compared to the average price of 2016.

The ministry reported that in August, about 35,000 tonnes of cashew was shipped abroad for 351 million USD.

The US, the Netherlands and China continued to be the leading markets of Vietnamese cashew, which consumed 36.7 percent, 15.6 percent and 11.7 percent of the country’s total export volume, respectively.

The highest growth was recorded in the Russian market at 67.1 percent, followed by the Netherlands with 44.9 percent, the US, 38.2 percent, Israel, 30 percent and the US, 22.1 percent, added the ministry.

Ninh Binh province looks to nearly double tourism revenue

Tourism will become a key economic sector of the northern province of Ninh Binh by 2025, local officials said at a tourism conference held in Ho Chi Minh City on September 8.

Pham Duy Phong, director of the Ninh Binh Tourism Promotion Information Centre, made remarks at the conference, jointly held by the Vietnam Tourism Association, Ninh Binh Tourism Promotion Information Centre and HCM City’s Tourism Association.

Speaking of the tourism targets, Phong said that last year the province welcomed 6.5 million visitors, earning revenue of over 1.7 trillion VND (75 million USD). The province aims to receive 6.7 million visitors this year and 7.6 million visitors by 2020, reaching revenue of 3 trillion VND (132 million USD).

Ninh Binh province is an increasing favourite destination for many tourists in Vietnam. It is land of renowned landscapes, historical relics, traditional trade villages, and varied cuisine. One particularly notable site is the Trang An Scenic Landscape Complex, a UNESCO-recognised World Heritage Site in Vietnam. But the tourism industry in the province wants more help from local officials.

The conference heard many opinions about the challenges facing Ninh Binh province’s tourism industry. Representatives of many travel agencies, for example, complained about high prices for goods and services.

They suggested Ninh Binh tourism industry leaders pay more attention to developing souvenirs, diversifying local specialties to meet visitors’ different tastes and seeking effective solutions to the issue of overcharging.

According to Nguyen Quy Phuong, head of the travel industry department under the Vietnam National Administration of Tourism, the provincial sector should be concerned about promoting itself to the international market. He also suggested the province invest in its infrastructure and human resources to develop tourism sustainably.

Bui Thanh Dong, the general director of Ninh Binh province’s Department of Tourism, said that the province is diversifying souvenirs by researching and introducing new ones, such as duplicates of Thai Binh Hung Bao coins, the first coin in Vietnam. He added that the sector will co-operate with related industries to enhance the tourism services of the province and offer favourable conditions to travel agencies.

Vietjet signs deal with HCM City Tourism Dept

Budget carrier Vietjet Air has secured a cooperation pact with the Ho Chi Minh City Tourism Department in the framework of the city’s 13th International Travel Expo (ITE HCMC).

Under the deal signed on September 8, the two sides will work together to promote HCM City’s tourist destinations, and develop joint tourism products. They will also cooperate to attract visitors from key markets and exploring new ones.

Also at the ITE HCMC, Vietjet has been honoured as “Best Low Cost Carrier” by the municipal Tourism Department.

Boasting a fleet of 45 aircraft, including A320s and A321s, the airline runs 350 flights each day and has to date carried nearly 40 million passengers. 

It has already opened 73 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, the Republic of Korea, Taiwan (China), Hong Kong, mainland China, Malaysia, Myanmar and Cambodia.

Conferences to encourage farmers’ entrepreneurship

Two conferences are going to take place in Hanoi in mid-September with a view to encouraging farmers’ entrepreneurship and honouring exemplary farmers.

Chairman of the Vietnam Farmers’ Union Lai Xuan Mon said at a press conference on September 8 that the farmers’ startup conference will be held on September 18 in response to the national startup movement. It aims to assist agriculture startups and encourage farmers’ creativity in production and business activities.

As part of the conference, a seminar will focus on solutions to help farmers do business. Experts and farmers representing some startup models will discuss farming models with hi-tech application, agri-tourism, poly-culture production according to production chains, and product processing and consumption models.

Participants will analyse and suggest development opportunities, difficulties and solutions, he noted, adding that some outstanding farmers will also share their success stories.

Meanwhile, a conference reviewing farmers’ production and business emulation movement from 2012 to 2017 is about to be organised on September 19. It will gather 300 delegates who are excellent farmers representing millions of farmers nationwide.

Mon said in 2016, more than 3.55 million farming households were recognised as excellent. About 27,000 of them gained over 1 billion VND (44,000 USD) in income. These excellent farming households have provided jobs for more than 11 million people.

Dong Ky, village of startups

Dong Ky, also known as Coi village, is located in Tu Son town, Bac Ninh province, and is famous for traditional fine arts products.

Dong Ky’s wood furniture is popular in Vietnam and abroad. To expand production and boost exports, the Dong Ky Fine Arts Product Association has developed a project called “Village of startups” to connect local businesses.

Dong Ky people are wealthier thanks to hand crafting fine arts products. Its most prosperous period was from 1988 to 2012. Now, however, it is being hampered by its old way of doing business. 

The village’s companies and household producers do not coordinate with each other to create a collective strength. Consequently, economic efficiency is low and international integration has made this a serious problem.

Recently the Dong Ky Fine Arts Product Association undertook a project called “Village of startups” to connect local businesses and help them operate more efficiently. 

Dong Ky plans to develop a 50-ha craft cluster in Tu Son town and reduce its dependence on the Chinese market.

Vu Quoc Vuong, President of the Dong Ky Fine Arts Product Association, said, “Dong Ky’s startup project is expected to create a breakthrough for the village. The project will create a much bigger workshop space to allow villagers to expand production for exports."

"Because it is far from residential areas, it will reduce pollution and improve the environment as it supports social security and generates jobs. Once established, the craft cluster will have a separate area for artisans to demonstrate their talents and wood villages to exchange with each other,” he said.

Last year Dong Ky earned about 40 million dollars from furniture exports, one fourth of which came from the Chinese market.

Vu Thi Mai, Director General of the Huong Mai Furniture Company, one of Dong Ky’s leading exporters, said, “The wood sector has undergone many ups and downs. We have grown like this because we love the craft. We have invested in the production of high quality products with Vietnamese cultural features. We intend to export to Japan, the Republic of Korea, and China’s Taiwan.”

Dong Ky has more than 2,000 enterprises and household producers involved in the furniture trade.

Artisan Vu Ngoc Nam, Deputy President of the Dong Ky Fine Arts Product Association, said, “In recent years Dong Ky has sold many of its products to China. The village now specializes in tables, chairs, beds, and cupboards. We have many artisans and skilled workers. We hope the project will be realized soon.”

Vietnam’s 2017 rice production estimated at 44.1 million tonnes

Vietnam expects to produce 44.1 million tonnes of rice in 2017, according to the Department of Cultivation under the Ministry of Agriculture and Rural Development (MARD).

Unfavourable weather conditions shrank winter-spring rice yield by 300,000 tonnes. However, southern localities are estimated to enjoy a surge in rice production of 400,000 tonnes. They have already harvested 1.08 million hectares of rice, or 56.2%.

The Cultivation Department said that rice fields in the north are developing well while the rice output of the autumn-winter crop in the Mekong Delta region is forecast to increase by 250,000-300,000 tonnes from the same crop last year.

Diseases on rice coupled with impacts of downpours in the north and floods in the south cause great concern to the agricultural sector. Thus, the sector needs to draw up measures to ensure safety for rice production.

Aquaculture conference and fair set for Oct.6-8 in Hanoi

The Directorate of Fisheries announced at a press conference today (September 8) that an aquaculture conference and fair has been set for October 6-8 in the capital city of Hanoi.

This is a premier event that brings together a unique mix of experts including scientists, researchers and decision makers both from academia and industry to exchange their knowledge, experience and research innovations, said Tran Dinh Luan, deputy director general of the Directorate, at the presser.

Aquaculture is a major segment of the Vietnam economy and is universally understood as the farming of aquatic organisms including fish and shellfish such as molluscs, crustaceans as well as marine plants.

Farming implies some form of intervention in the rearing process to enhance production, he added.

This aquaculture conference will cover new research techniques and concentrate on the exhibition of new feeds, fish welfare, antibiotics, and instruments introduced by the aquaculture fisheries laboratories.

In addition, the conference will hold special workshops aimed at advertising and marketing farm raised pangasius, which is most commonly referred to by the western world as catfish, in the northern region of Vietnam.

At the presser, Dao Van Ho, director of the Vietnam Trade Promotion Centre for Agriculture, noted that pangasius catfish is a relatively new product in northern Vietnam with a low sales volume.

The workshops will concentrate on novel approaches to market the new fish in the northern region as part of an effort to boost both sales and earnings and gain the confidence of consumers that the pangasius catfish is safe to eat.

VEB and IIB to finance Long Phu 1 power plant

Vnesheconombank, International Investment Bank, and PetroVietnam have entered into a tripartite memorandum determining the cooperation framework of financing the construction of Long Phu 1 power plant in Vietnam, according to International Investment Bank’s press release dated September 8. 

Russia-based Bank for Development and Foreign Economic Affairs—Vnesheconombank (VEB), one of Russia’s largest financial institutions—together with International Investment Bank (IIB), whose member countries include Vietnam, and the Vietnamese oil and gas group signed the memorandum in Ho Chi Minh City during the 20th meeting of the Inter-Governmental Russian-Vietnamese Commission for Trade-Economic and Scientific-Technical Cooperation.

Daniil Algulyan, VEB’s senior vice president and head of International Business, Export and Financial Institutions, Nikolay Kosov, chairman of the IIB Board, and Nguyen Quynh Lam, PetroVietnam vice president, signed the document, agreeing that VEB and IIB will finance the equipment supply for the project.

In particular, the banks will provide loans for the purchase of Russian high-tech industrial products and for the provision of associated works and services. The relevant decision was taken by the management bodies of VEB and approved by IIB.

“In accordance with VEB’s new strategy, VEB is prepared to provide comprehensive financial, guarantee, and insurance support for the projects and commercial transactions aimed at expanding the supply of high-tech products to foreign markets. The memorandum marked an important step towards promoting Russian industrial products to Asian markets and created the necessary conditions for development of the partnership between Russian exporters and importers from Southeast Asia,” said Algulyan.

“The memorandum is a testament to our joint efforts in supporting Russian exports and the energy sector of Vietnam, one of IIB’s shareholders. The bank’s Credit Committee approved lending to Long Phu 1 project, which is aimed at strengthening Vietnam’s energy independence and has a strong integration component. Equipment for the power plant will be supplied from the following three member countries: Russia, Vietnam, and the Czech Republic,” said Kosov. 

Aircraft building, railroad rolling stock manufacturing, car manufacturing, power engineering, agribusiness and agricultural machine building, nuclear energy, and innovation are VEB’s sectorial priorities in supporting the export of high-value-added products.

The construction will be carried out by an international consortium headed by PJSC Power Machines. On June 2, 2017, during the Saint Petersburg International Economic Forum, VEB and Power Machines signed an agreement to facilitate power equipment exports. 

Samsung explores new horizons in Vietnam

Along with investing $17 billion in high-tech complexes in Thai Nguyen and Bac Ninh provinces, Samsung plans to encroach on other sectors in Vietnam.

Along with the launching of Galaxy Note 8, the newest Samsung smartphone model, on September 13 in Ho Chi Minh City, the Korean giant will also launch Samsung Pay, its mobile payment service, soon.

This is not the first time that Samsung mentions launching Samsung Pay. Last year, when the company launched the Galaxy S7 and S7 Edge in Vietnam, Kim Kyung-dong, director of Samsung Pay, said that Vietnam was considered a potential market for Samsung Pay and expected to convert the country’s majority of consumers to electronic payments.

At the time, Samsung Pay was expected to launch in Vietnam in 2016, however, to date, the company completed the entire procedures for launching Samsung Pay in Vietnam.

According to unofficial information, numerous domestic banks, including Vietcombank, VietinBank and BIDV, and even foreign banks like Shinhanbank and Citi Bank will support Samsung Pay to extend its network in Vietnam.

Several days ago, according to newswire Business Korea, Samsung Securities announced a cooperation deal with Caldera Pacific, a Hong Kong-based private equity fund, to buy a 40 per cent stake in Dragon Capital and become its second-largest shareholder.

According to the deal, Samsung Securities will hold 10 per cent and Caldera Pacific 30 per cent.

The deal aims to accelerate Samsung’s inroads into the Vietnamese stock market to keep up with competing compatriots who are already present in Vietnam’s numerous sectors. 

Market experts forecast that acquiring a stake in Dragon Capital is the beginning of Samsung Securities’ strategy to enter the Vietnamese stock market and the company may additionally acquire stakes in other companies.

In March 2016, Samsung was granted the investment certificate for a large-scale research and development centre in Hanoi’s Hoang Mai district.

This $300-million project, which would be Vietnam’s largest research and development (R&D) centre to date, also marks the first time a global tech giant has chosen Vietnam as an R&D hub.

Samsung planned to build a 21-storey building on a three-hectare land plot and employ 2,000 labourers in 2016 and eventually 4,000 in the upcoming years. The total capital volume of $300 million would be disbursed within four years, including $50 million in the 2016-2017 period, $150 million in 2018, and the remaining $100 million in 2019.

However, to date, there has been no move to implement the project.

Debate continues over definition of Uber & Grab

Uber and Grab are not types of taxis but are types of contract cars, Mr. Nguyen Duc Thanh, Director of the Vietnam Center for Economic and Policy Research (VEPR), told a workshop entitled “Urban Traffic Regulation Policy in the Digital Era” held by VEPR on September 8 in Hanoi.

The workshop focused on the emergence of many new socioeconomic phenomena in the context of new technologies evolving rapidly in the fourth industrial revolution (Industry 4.0), typically in the transport market.

In Vietnam’s major cities, there is a growing tendency in planning and policy to respond to these new phenomena. Specifically, there is a limitation on the number of electronic contract cars such as Uber and Grab to minimize traffic congestion and prevent disruption to the traditional taxi industry.

Therefore, according to Mr. Thanh, policy makers not clearly differentiating between traditional taxis and Uber and Grab will lead to confusion.

Mr. Do Hoai Nam, CEO and Co-Founder of UP-Co Working Space Vietnam, told the workshop that the government should have a policy of obliging traditional taxis to change technology instead of limiting the development of Uber and Grab. “According to studies, occupancy in Uber and Grab cars is over 75 per cent and 25 per cent in traditional taxis,” he added.

Economist Pham The Anh agreed that Uber and Grab are a test of the direction towards promoting science and technology in real life and in economic activities. “Policy makers need to make assessments from a variety of perspectives, such as consumers, service providers, and taxi companies, to come up with appropriate policies,” he said.

At the workshop, Dr. Dang Quang Vinh from the Central Institute for Economic Management (CIEM) proposed that the government eliminate some regulations and conditions and liberalize taxi transport, so that businesses can compete in an equal environment and ensure safety.

Uber and Grab have created competition in the market, with a number of traditional taxi companies renewing their technology and curbing fare rises. “Therefore, authorities should carefully assess the effectiveness of Uber and Grab and choose the best policy options in the context of extensive integration,” Dr. Vinh said.

VinaLand makes tender offer and divests from Vina Square

VinaLand Limited, the AIM-quoted investment vehicle established to target strategic segments within Vietnam’s emerging real estate market, has announced it will conduct a distribution of up to $60 million to shareholders through a tender offer to purchase ordinary shares in the company for $0.01 each.

The offer is for all shareholders on the register at 6pm UK time on September 15, at a fixed price of $0.83 per ordinary share. Shareholders can either elect to accept or decline participation in the tender offer. Consequently, the company intends to repurchase, in aggregate, such number of ordinary shares at the tender price as is equal to $60 million.

Accordingly, if shareholders in aggregate tender ordinary shares more than the tender value cap, elections will be scaled back to the tender value cap. To the extent that not all shareholders elect to participate in the tender offer, the company will be able to acquire from tendering shareholders additional ordinary shares up to the tender value cap.

All ordinary shares repurchased by the company pursuant to the tender offer will be cancelled.

Furthermore, the company has announced that it is divesting its stake in the Vina Square project, located in Ho Chi Minh City. The project consists of a total land area of approximately 3 ha and was acquired by VinaLand in 2007, at which time the land was designated as a future development site. VinaLand is divesting its entire stake in the project to Vietnam’s Tri Duc Real Estate Company for net cash proceeds of approximately $41.2 million, which includes the repayment of shareholder loans, resulting in an IRR of 3.3 per cent to the company. The total valuation is recorded at 0.3 per cent above the June 30, 2017 unaudited net asset value and 13.5 per cent above the unaudited net asset value at the time of VinaLand’s extra-ordinary meeting in November 2016. Both figures include adjustments for additional investments up to the date of exit. At the time of the announcement, $41 million, or 99.5 per cent, of the net proceeds have been received by the company. It is expected that all proceeds will be received by the company by the end of this month. 

“This tender offer follows the announcement of the Vina Square disposal, for which all proceeds will be received in September, enabling further distributions to shareholders during October 2017,” said Managing Director Mr. David Blackhall. “This divestment is in accordance with the current stated policy to divest projects in a controlled and orderly manner, and steady progress has been made with further pipeline disposals. The proceeds received from this disposal will, in conjunction with collections from earlier disposals including prepayment advances for future pipeline disposals, be used to cover VinaLand’s commitments, including operating costs, capital contributions, and further distributions to shareholders.”

OMA Emirates set to enter Vietnam

OMA Emirates, one of the UAE’s leading payments solutions providers, gained ground in its expansion plans with its attendance at Seamless Vietnam 2017, which was held in Ho Chi Minh City a few days ago.

The company showcased its homegrown solutions and service developments for the banking and retail domains, which include loyalty platforms and solutions, ATM optimization, and card personalization.

For the first time since the launch of its “Omega - A Closed Loop Platform”, visitors to the exhibition were be able to witness the new solution. Developed to support customers who are connected to the OMA Emirates network, the platform will enable them be a part of the loyalty program or pre-paid cards.

“We have been very successful with our global expansion plans over the last two years and our participation at Seamless Vietnam further strengthens our goals,” said Mr. Niranj Sangal, CEO of OMA Emirates Group. “Simultaneously, OMA Emirates has developed several new products in keeping with market trends and needs and we are now positioned to explore new markets with our entire range of solutions and services for the banking and retail sectors. We look forward to interacting with all our potential customers and have put into motion a chain of activities to connect and communicate with them.”

On the banking front, OMA Emirates demonstrated its NanoSwitch ATM, which is a secure online solution for ATM transactions. The robust solution enables the optimization of ATM management by providing transaction routing, authorization hosts, and settlement and management reports. The solution complies with strict EMV standards and is certified by major payment schemes including Visa and Mastercard.

The retail sector solutions showcased at Seamless Vietnam included the company’s B2B2C loyalty program under the brand name “Benefit Beyond”, a common branded card capable of hosting multiple loyalty programs.

Another solution accepted by the retail industry and also demonstrated is the OMA Retail Suite. The solution is a technology platform that lays the foundation for a network of retailers and consumers who can benefit from a robust low-cost loyalty program. An intranet management portal that is a fully automated ERP, it is a highly scalable system that is convenient for both large as well as smaller outlets.

The Middle East-based OMA Emirates Group is a provider to the payments industry, with cutting-edge technology solutions for card personalization, payment issuance, and payment acquiring systems through a global delivery platform.

The company aims to help businesses achieve the highest levels of efficiency by drawing on its extensive research and experience with a large profile of high-performance businesses. OMA Emirates Group, together with its strategic world class technology partners, designs and delivers a seamless customer experience. The company now has a presence in Eastern Europe, Africa, and APAC.

Caution needed as Vietnam mulls over property tax

Although Vietnam already has a set of taxes on land, it has yet to impose a property tax like many other countries. The Ministry of Finance is looking to raise the government’s income by levying a property tax rate that fits in with Vietnam’s current situation.

Statistics show that Vietnam’s per capita income has been rising rapidly, from US$1,400 in 2013 to US$2,200 in 2016, and is projected to reach US$3,400 by 2020. The rise in income is also coupled with an increase in property ownership. Meanwhile, land tax revenues only account for a minimal 0.03% of the GDP and just 0.15% of the total government income. That is why the Ministry of Finance (MOF) is considering taxing individuals who own a second house or more.

According to the MOF, the property tax will not only help to increase government revenues, redistribute personal wealth and improve social equality but will also help to build a system of taxes in line with international practices, whilst stabilising the property market, restricting speculation and increasing the efficiency in using properties.

However careful preparations are needed before the property tax law is officially enacted as this type of tax is not easy to collect and it is also often difficult to determine the ownership of the second houses for a number of reasons.

Firstly, a clear definition of the properties on which the tax is to be levied has yet to be provided. Moreover, the collection of the property tax can be easily nullified by legal loopholes if there are no transparent regulations on the age of owners and house registration in other people’s names.

Secondly, Vietnam is levying the land use tax and considers the land use rights as a type of personal and corporate property. If the definitions are not established clearly, it could lead to conflict or overlapping taxes. A house worth a few thousand dollars cannot be equated with a villa worth millions of dollars. The government also cannot levy tax on the second and more houses whose total value is even less than another one which is outside the taxation scope.

Thirdly, it is necessary to develop convincing arguments in order to reach a strong public consensus on how properties should be taxed and the sanctions on those who fail to report their large assets or own homes abroad.

In addition, it should be anticipated that collecting the property tax could easily present a chance for corruption as the taxpayers and tax collectors could collude with each other to avoid paying taxes.

If the scope of taxation excludes low-value houses and solely covers high-value houses, it could give new impetus for increasing investment in and ownership of affordable houses which are currently in short demand.

However, the property tax on the second houses is new and highly significant therefore it requires a roadmap which is large enough for adequate consideration and the law-making process should take into account thorough research, international experience and public feedback.

In addition, in order to allay any concerns that the property tax could become a burden on enterprises and homebuyers, reform is needed in the collection of land use fees and the property tax must not be levied on houses with low value, such as those below VND1 billion (US$44,000) and households with many houses whose total value is below the average threshold.

Furthermore, the tax rates should follow different brackets and be appropriate with local conditions. At the same time, other measures are needed to prevent house speculation and to stabilise the property market.

Under any circumstances, the establishment of a national information system on property transactions and property owners is necessary to ensure both efficient state management on properties and successful property tax collection.

PVN’s loss-making ethanol projects show signs of revival

Vietnam Oil and Gas Group’s (PVN) loss-making ethanol projects will be able to return to life, helped by the Government’s decision to withdraw A92 petrol from the market to boost still-poor sales of E5 bio-gasoline.

From next year on, only E5, which is a mixture of A92 gasoline and 5% ethanol, and A95 gasoline will be available on the market.

PVN general director Nguyen Vu Truong Son said the withdrawal of A92 from the market had paved the way for PVN to restart its debt-laden ethanol projects.

PVN has reviewed its loss-making projects, including the polyester fiber and ethanol facilities which have been put on hold for years. Son said some partners of PVN’s had shown interest in acquiring stakes at several projects so that they could resume production from early next year.

Three investors – Tin Thanh Industrial Electricity and Steam Co Ltd, Tung Lam Co Ltd and Sundries Investment and Trading JSC (Tocontap) – have expressed interest in the Dung Quat ethanol plant of PetroVietnam Central Bio-fuels JSC (BSR-BF).

BSR-BF has signed a contract with a consulting company to evaluate the project and prepare a divestment plan as well as select investors in September and finalize a production resumption plan before divestment.

For Binh Phuoc ethanol project, a team comprising representatives of PVN and PetroVietnam Oil Corporation (PVOil) has worked with project investor Orient Bio-Fuels Co Ltd (OBF) and its shareholders Thailand’s Toyo Engineering Corporation and Licogi 16 Company (LCG) to discuss plans to revive the project.

PVOil has worked with OBF and Tung Lam Co Ltd to find solutions to production cost cuts and productivity improvement in the project. Among the ethanol projects in the nation, just two projects of Tung Lam Co Ltd have been performing well, so PVN will ask the company for advice.

At a meeting on August 24, 2017, Toyo and Licogi 16 said they would complete necessary procedures to inject more capital into the project.

PVOil and shareholders will have to secure about VND91 billion (US$4 million) to put the project back into operation next year and work with suppliers to ensure sufficient input material.

Two investors – Thai Son Investment JSC and Mepcom Offshore and Marine Pte Ltd – are eyeing the Phu Tho ethanol project developed by PetroVietnam Bio-ethanol Company (PVB). Mepcom Offshore and Marine Pte Ltd has proposed acquiring shares of PVB’s shareholders and develop the project in the build-own-operate (BOO) format.

As for the Dinh Vu polyester fiber plant, Vietnam Textile and Garment Group (Vinatex) has promised to purchase all the plant’s output in 2018. PVN will work with domestic and foreign partners to finalize investment and restructuring options for the project by the end of this year.

According to the ministry, there will be no other choice but to dissolve the Dung Quat shipbuilding project.

Global leading brands gather at Thai agricultural fair

More than 300 brands from all over the world took part in the SIMA ASEAN Thailand 2017, which is ASEAN’s largest all-in-one platform for agribusiness focusing on the machinery innovations to reach the Agriculture 4.0 era.

The fair, which closed Saturday, was jointly organized by IMPACT Exhibition Management Co Ltd, COMEXPOSIUM and Union des Industriels de I’Agroeqyuipment from France, Thailand’s Ministry of Agriculture and Cooperatives, and Kasetsart University.

“We are aware of its significance in driving Thailand to the Agriculture 4.0 era,” said Dr. Suwit Chaikiattiyos, general director of the Department of Agriculture under the Ministry of Agriculture and Cooperatives.

“We hope that this event will be the platform to exchange ideas and the latest technology that lead to the rapid industry development, an increase of leverage negotiation for farmers, and a higher capability of the Thai agribusiness industry in the highly competitive international market,” he said.

In addition, the event helped promote and strengthen Thailand’s agriculture by giving Thai exhibitors the opportunity to showcase their potential, as well as learn more about practical agricultural innovations and technology from international exhibitors. It also aimed to educate Thai farmers how to increase their productivity and raise the bar for agricultural produce to meet international standards.

Loy Joon How, general manager of IMPACT Exhibition Management Co Ltd, said SIMA ASEAN Thailand 2017 was a brilliant opportunity for Thailand to become the main agribusiness hub in the region. More than 300 brands from all over the world are exhibiting their products and services at the event.

This year’s highlight was the demonstration area located by IMPACT lakeside, where agricultural machinery is on display. Experts were present to share their knowledge and there will also be a drone pavilion and workshops that are geared towards the Agriculture 4.0 era.

Jean-Hugues Barsot, key account manager of SIMA – SITEVI at COMEXPOSIUM, said SIMA was an international agricultural exhibition where innovations, latest technology and machinery for the agricultural sector are featured. It also served as a meeting point for traders, buyers, importers, operators, farmers, experts and professionals in agribusiness.

At the SIMA Paris event this year, there were 232,000 visitors from across the world, and over 1,700 exhibitors from 42 countries and territories, building a stronger brand for SIMA.

“We organize events in Europe, South Africa and Asia. With this third edition, SIMA ASEAN can now be considered as a deeply-rooted exhibition. This show confirms its status as the leading agricultural trade show in Southeast Asia,” Barsot said.

The third edition of SIMA ASEAN Thailand 2017 was expected to attract 15% more visitors than the previous year and generate more than one billion bath in revenues. The second edition last year attracted more than 13,000 trade visitors from 40 countries and territories such as Australia, Canada, China, France, Germany, India, Indonesia, Italy, Japan and Vietnam.

HCMC to build more exhibition and convention centers

HCMC will have more sites to organize big conferences and exhibitions, thus promoting the development of meeting, incentive, conference and exhibition (MICE) tourism.

Bui Ta Hoang Vu, director of the HCMC Department of Tourism, said work on a 14-hectare international exhibition and convention center would commence in Thu Thiem New Urban Area next year. It is expected to be up and running in 2020.

Some other major projects are being developed in Can Gio and Cu Chi districts. And more high-end hotels will be built in the city to meet the demand of MICE guests.

Vu told the Daily on the sidelines of the “HCMC – a new destination for MICE tourism in Southeast Asia” seminar on September 6 that enterprises should also do the marketing and devise attractive products for guests.

According to the Department of Tourism, the first half of 2017 saw  more than 2.7 million foreign tourists coming to the city, up 14% year-on-year. The city currently has over 2,100 hotels with a total of 50,300 rooms, including 1,900 hotels of  one to five stars with 48,700 rooms.

The department cited statistics of McKinsey, a U.S consulting company, as saying that 17% of tourists come to HCMC for work, above the region’s average of 14-15%.

With a lot of traffic infrastructure and service development projects, the city expects MICE tourism to grow strongly in the coming time. However, many enterprises have complained about the shortage of large exhibition and convention space while the Saigon Exhibition and Convention Center (SECC) is often full all year round.

Thuong My An, general director of Saigon Exhibition and Convention Joint Venture Co Ltd, said 53 events were organized at the center last year. The center will be expanded with an additional 10,000-square-meter area to accommodate exhibitions with 1,000 booths instead of the current 500.

VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET