Vietnam ships first batch of dragon fruit to Australia

The first batch of Vietnamese dragon fruit has been exported to Australia by the Hoang Phat one-member Ltd Co in the southern province of Long An, announced the Ministry of Agriculture and Rural Development and Long An authorities on September 20. 

According to Hoang Phat Company Director Nguyen Thi Kim Thoa, the batch comprised 3 tonnes of white-flesh dragon fruit. 

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said the export of the first batch of dragon fruit to Australia is an important event for the agricultural sector, marking the efforts of farmers, exporters and relevant agencies. 

Pham Van Canh, Vice chairman of Long An People’s Committee said the success opens the way for the province’s fruit to enter other choosy markets. He added that at present, 80 percent of dragon fruit grown in Long An is shipped to China, 15 percent is sold on the domestic market and only five percent is exported to other markets including Japan, Thailand, the US and Europe. 

He said the provincial authorities will provide more guidance to local farmers and exporters in improving production and preservation techniques to meet Australia’s requirements. 

Australia recently announced that it would permit the import of Vietnamese dragon fruit, making Vietnam the first country to get licence to export fresh dragon fruit to the country.

Dragon fruit is one of Vietnam’s key export fruits, and saw export sales worth 895.7 million USD in 2016, accounting for 50.3 percent of the country’s total fresh fruit exports and 36.1 percent of its total fruit and vegetables exports.

Vietnamese dragon fruit has been exported to 40 countries and territories such as China, Thailand and Indonesia. 

Long An province earns about 40 million USD annually from dragon fruit export. The province has defined dragon fruit as one of its key crops, only after rice. 

Startups honoured for climate change response initiatives

Twenty-one startup businesses were honoured at an award ceremony in Hanoi on September 20 for initiatives in response to climate change-related challenges. 

Of them, 17 received financial and services support while the remaining obtained services assistance only. The organising board also acknowledged efforts of the first seven firms that graduated from incubation lasting one year. 

Speaking at the event, Deputy Minister of Science and Technology Pham Dai Duong praised startups for standing side by side with the Vietnam Climate Innovation Centre to achieve set goals. 

He expressed hope that the honoured enterprises would grow further and positively impact economy, environment and society.

WB Country Director in Vietnam Ousmane Dione lauded the winners for playing important roles in local economic development and job creation. 

Underscoring the need to promote global actions coping with climate change, UK Ambassador to Vietnam Giles Lever said countries need to commit to a safer and more prosperous future for all citizens. With the goal of shaping a global economy, they should accelerate innovation wave via the transfer of new technologies and trade facilitation, he said.

APEC forum to boost women’s integration, economic power

The APEC Women and the Economy Forum 2017 is scheduled to take place in Hue city, the central province of Thua Thien-Hue, from September 26 to 29, aiming to enhance women’s integration and economic power in a changing world.

Deputy Minister of Labour, Invalids and Social Affairs Dao Hong Lan said at a press conference in Hanoi on September 20 that the forum aims to contribute to APEC’s joint efforts and continue implementing the recommendations on economic efficiency integration, finance and society, and women’s empowerment, which APEC leaders made in 2016.

The forum will help with the realisation of APEC 2017’s priorities for the sake of sustainable, innovative and inclusive growth, she noted.

It will feature three main events, namely the meeting on policy partnership on women and the economy on September 26 and 27, the public-private dialogue on women and the economy on September 28, and the high-level policy dialogue on women and the economy on September 29.

Fringe activities include a seminar on women as prime movers of inclusive business, a workshop on gender innovation for technology and science for women, a women in transportation forum, and the presentation of the APEC Business Efficiency and Success Target Awards.

More than 500 delegates representing public and private sectors and businesses from the 21 APEC economies are expected to take part in the forum and related meetings.

Outcomes of the events are set to help strengthen the connectivity among APEC women entrepreneurs and between public and private sectors. They are also hoped to create more opportunities for women-led businesses and female entrepreneurs to engage in the region’s value and supply chains while promoting APEC women’s integration and economic power.

Vietnam Airlines resumes service on Hanoi-Tuy Hoa route

The national flag carrier Vietnam Airlines will resume service connecting Hanoi and Tuy Hoa city in the central coastal province of Phu Yen from October 1 with four flights per week to meet increasing travel demands.

The flights on Airbus A321 plane will depart from Hanoi at 11:30 am and from Tuy Hoa at 13:50 on Tuesday, Thursday, Friday and Sunday. 

On the occasion, the carrier launched the programme “Discovering the land of yellow flower on green grass”, offering promotional air fares starting from 499,000 VND (21.9 USD) on Hanoi-Tuy Hoa route.

Tickets are available for booking until September 30 for departure from October 1 to December 31.

The rates do not include tax, fees and charges. 

Earlier on December 16, 2015, Vietnam Airlines transferred the Hanoi-Tuy Hoa route to low-cost carrier Jetstar Pacific. As Jetstar Pacific is a subsidiary company of Vietnam Airlines, the transfer was part of the national flag carrier’s strategy to develop a Vietnam Airline-Jetstar Pacific dual-brand name, focusing on restructuring, completing the flight route network, diversifying and improving service quality.

Int’l health care expo opens in HCM City

About 400 businesses from 25 countries and territories are showcasing their products at the 12th Pharmed & Health Care Vietnam (Pharmedi 2017), which opened in HCM City on September 20.

The four-day event displays pharmaceuticals and materials, surgery machines and equipment, diagnosis equipment, check-up and treatment services, and beauty care products at its over 600 booths.

Speaking at the opening ceremony, Nguyen Dinh Anh, an official from the Ministry of Health, said the exhibition is becoming more attractive to foreign businesses as many new products such as check-up and treatment support equipment are showcased at the event for the first time.

Within the framework of the exhibition, seminars on pharmaceuticals and digital revolution in comprehensive business administration and medical equipment business in Vietnam will be also held.

During this year’s event, organisers will offer free medical check-ups for about 1,000 people each day by more than 30 doctors from the District 2 Hospital and the Hospital of the Ho Chi Minh City Medicine and Pharmacy University.

BIDV, Lao foreign trade bank beef up cooperation

The Bank for Investment and Development of Vietnam (BIDV) and the Banque Pour Le Commerce Exterieur Lao Public (BCEL) will continue to promote their comprehensive cooperation during 2017-2020 as stipulated in an agreement inked between the two banks in Hanoi on September 20.

Speaking at the signing ceremony, BIDV General Manager Phan Duc Tu highlighted that both sides will cooperate in training and experience sharing as well as supporting business activities of their joint ventures including LaoVietBank and Lao-Vietnam Insurance Company (LVI).

The agreement signing between BIDV and BCEL is a significant event to celebrate 55th anniversary of Vietnam-Laos diplomatic relations (September 5, 1962-2017) and 40th years of the signing of Vietnam-Laos Treaty of Amity and Cooperation.

The move also pushes collaboration between the two banks, bringing more benefits to enterprises and people of the two countries.

The BCEL, established in 1975, is the largest bank in Laos with total assets worth about 3.9 billion USD as of December 31, 2016. The bank has 19 branches, 75 transaction points and 10 currency exchange points.

Aeon to accelerate project in Hai Phong

Aeon Vietnam’s 180 million USD shopping centre in the northern port city of Hai Phong is expected to begin operation by 2020 and welcome about 13 million customers each year, said General Director of the company Iwamura Yasutsugu.

He made the statement during a ceremony in Hai Phong on September 20 to sign a Memorandum of Understanding (MoU) with the Hai Phong Centre for Investment, Trade and Tourism Promotion, and Viet Phat investment, trade and export-import company to accelerate the construction of the shopping centre.

Speaking at the signing ceremony, Secretary of the municipal Party Committee Le Van Thanh said once completed, the project will generate jobs to more than 2,000 workers, contribute to the State budget and assist the development of local small and medium-sized enterprises. 

Hai Phong will hand over the site on schedule and ensure infrastructure along with water and electricity supply for the investor to carry out the construction, he said. 

The AeonMall Hai Phong-Le Chan will cover an area of nearly 9.3ha on Ho Sen – Cau Rao 2 road in Le Chan district.

Aeon Vietnam is a subsidiary of giant Japanese retailer Aeon, which entered Vietnam in 2011.

Reference exchange rate stays stable

The daily reference exchange rate for VND/USD on September 21 was kept unchanged from the previous day at 22,446 VND/USD.

With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is 23,118 VND/USD and the floor rate 21,774 VND/USD.

The opening hour rates at major commercial banks continue to be stable for another day. 

The greenback is being bought at 22,690 VND per USD at Vietcombank, BIDV and Vietinbank, the same as on September 20. 

The three banks are selling USD at 22,760 VND per USD, also unchanged from rate on the previous day.

Shares volatile as market corrects

Shares moved in opposite directions on the two stock exchanges on September 20. Investors’ sentiment was fragile as worry swirled about the possibility of a deeper correction.

On the HCM Stock Exchange, the VN-Index bounced back to over 805 points after first dropping to below 804 points. It closed almost unchanged compared to September 19 at 805.86 points.

On the Hanoi Stock Exchange, the HNX-Index increased 0.43 percent to close the trade at 105.18 points. It dropped 0.38 percent on September 19.

Large-cap stocks expanded divergence. In the VN30 basket which tracks the top 30 largest shares by market value and liquidity, 15 declined and 12 advanced.

Financial, steel and energy stocks were losers yesterday, including BIDV (BID), Sacombank (STB), Saigon Securities Inc (SSI), private equity Masan Group (MSN), Hoa Phat Group (HPG), Hoa Sen Group (HSG), Petrolimex (PLX) and PetroVietnam Drilling and Well Services (PVD).

Heavyweight stocks which supported the market included Vinamilk (VNM), insurer Bao Viet Holdings (BVH), Vietcombank (VCB), Vietinbank (CTG), IT group FPT (FPT), Mobile World Group (MWG) and FLC Faros Construction (ROS).

“The market is still moving sideways in a wide divergence around the current price zone,” said Tran Hai Yen, a stock analyst at Bao Viet Securities Co. “Cash flows are alternately running into blue chips, helping maintain the index’s trend.”

However, Yen said without the consensus, the influence of cash flows is weak and predicted the market will likely enter a period of short-term downward trend.

Meanwhile, according to FPT Securities Co, the current correction is healthy for the market, as the VN-Index was approaching the short-term resistance level of 810 points. The correction will reduce pressure on share supply while attracting new money flows to provide new momentum for the next rally.

The key market index edged down 0.24 percent on September 19 but maintained the monthly upward trend with a rise of 3 percent since the beginning of this month. It has expanded over 21 percent compared to the end of last year.

Liquidity continued to decrease, as about 208 million shares worth a combined 3.84 trillion VND (169.4 million USD) were traded in the two markets yesterday, down 9.7 per cent in volume and 14.7 percent in value compared to September 19’s levels.

A positive sign was net buying by foreign traders. They were net buyers for a second day on the two exchanges, picking up a total of 39 billion VND worth of shares, lifting the two-day net buy value to78 billion VND.

TPP negotiators meet to hash out changes after US pullout

Chief negotiators of the 11 remaining countries of the Trans-Pacific Partnership (TPP) agreement began two-day talks in Tokyo, Japan on September 21 to discuss changes and freezes to parts of the deal following the withdrawal of the US earlier this year.

At the meeting, Japanese chief negotiator Kazuyoshi Umemoto expressed his hope that the countries would take a big step forward towards the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting scheduled for November in Vietnam.

He reaffirmed the significance of establishing a free and multilateral trade system based on high-standard rules in the Asia-Pacific which really fits the 21st century.

“It is also important to continue to pursue the possibility of the US coming back to this framework and for that purpose it’s very important to implement the TPP as early as possible”, he added.

The talks are expected to cover proposals such as a clause to preserve copyrights and trademarks for 70 years after the creators die and a clause that calls TPP members to open public procurement, allowing foreign companies to join bids.

Another issue that needs to be addressed is a clause stating that the TPP can only come into force after six economies, accounting for 85 percent or more of the original 12 signatories’ combined gross domestic product, complete domestic procedures. So far, just Japan and New Zealand have ratified the deal. As the United States alone represents more than 60 percent of the initial members’ GDP, it is impossible for the pact to come into effect under the current terms.

The TPP was inked in February 2016 by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam, covering around 40 percent of the global economy.

Right after taking office in January 2017, US President Donald Trump announced the country was pulling out the pact as it hurts US jobs and he prefers bilateral trade negotiations. 

Currently, Japan is the largest economy among the remaining negotiators. Tokyo wishes to reach an agreement among the countries to maintain the pact which had taken long time of negotiations before it was inked in February 2016.

However, it is possible that some countries can call for re-negotiations on import and export tariffs.

Expert: Policy predictability is crucial

Vo Tri Thanh, former vice president of the Central Institute for Economic Management, has underscored the importance of policy predictability, saying policies should be made predictable so that companies can map out their long-term business plans.

Thanh, speaking at a seminar on the consistency of pro-growth policies held by the Ministry of Planning and Investment in Hanoi City on September 19, said credit had grown strongly in recent years and the target for this year is 21-22%.

He declined to comment on whether this credit growth target is right or not but asked whether the Government will continue setting a higher target for next year, say 25%.

Local enterprises are still mired in difficulties but the Ministry of Finance is considering hiking the value-added tax (VAT), which, if approved, would leave negative impact on production and business activities.
“Making policies predictable is very important,” he said. “(Policymakers) should think of scenarios in which (bad) policies must be repealed.”

According to him, the Government is chasing an ambitious gross domestic product (GDP) target but the economy is facing a host of problems such as an overstretched State budget, slow economic restructuring and macroeconomic instability.

He proposed the Government remove all barriers to business to attract private resources which are huge.
Meanwhile, that businesses are being harassed by authorities is not uncommon. Dau Anh Tuan, head of the Legal Department of the Vietnam Chamber of Commerce and Industry, said a company based in the northern province of Thai Nguyen is calling for help.

The northern port city of Haiphong suddenly asked this company to pay an infrastructure fee of VND20,000 for each ton of loose cargo, he said, adding that although the company used waterway services for transporting its cargo, it still had to pay roughly VND400 million from 20,000 tons of cargo.

The fee had a severe effect on the company’s business activities. The frustrated business owner said he might reduce his business scale, Tuan said. Haiphong collected a small amount of fee but the morale of the company has been severely affected.

He said this enterprise has total annual revenue of around VND800 billion (US$35.2 million), and pays about VND30 billion in taxes.

Haiphong collects VND400 million from the company but the State could lose a huge tax payment by this firm if it chooses to scale down its operations.

Some have found no way but to shift to other business fields, thus leaving damaging impact on the economy as a whole.

He added a Ministry of Finance proposal for amending five tax laws has sparked public ire.

The Government always urges enterprises to prop up exports of processed material but the current policy on natural resources slaps a higher tariff on refined products than raw materials, he noted.

The Government should merely tax raw minerals to encourage processing, he proposed.

Strong exporter demand sends fish, shrimp prices rising

The growing demand for unprocessed fish and shrimp in the Mekong Delta, helped by a surge in exports, has sent their prices soaring.

Nguyen Huu Nguyen, head of the Fisheries Cooperative of Chau Phu District in An Giang Province, said unprocessed tra (pangasius) fish of small size is priced at VND26,000-27,000 a kilo, up by VND3,000 over the previous month. Meanwhile, he added, the price of fish of bigger size is VND24,500-25,000 a kilo, up VND2,000-2,500.

The demand for tra fish has stabilized in some foreign markets, thus fueling the consumption of unprocessed fish, he noted.

Vo Hong Ngoan, a farmer in Bac Lieu Province, told the Daily that the price of giant tiger prawn ranges from VND240,000 to VND300,000 a kilo, up VND5,000-10,000 against half a month ago.

The supply for shrimp has been falling while the demand for shrimp export has been growing, especially in the rest of the year, thus making the price of the crustacean higher.

White-leg shrimp sells for VND103,000-165,000 a kilo, up VND5,000 against haft a month ago, according to Nguyen Van Hau, a Ca Mau Province farmer.

The Vietnam Association of Seafood Exporters and Producers (VASEP) said in a report that the nation had made US$1.9 billion in shrimp export revenue in the year to July, an 18.5% rise against the same period last year.

Japan imported US$383.8 million of shrimp from Vietnam, up 35.2% year-on-year. The European Union came in second with US$380.6 million, up 20.5%, followed by China with US$348.4 million, up a staggering 106.3%.

The nation shipped US$344.7 million of shrimp to the United States, a year-on-year decline of 5.5%. However, VASEP forecast the situation would improve in the months to come.

A Ministry of Agriculture and Rural Development report said seafood export turnover in the year to August had amounted to US$5.13 billion, up 18.1% against the year-earlier period. Among the main buyers were China, South Korea, Japan and the U.S., which made up 55.6% of the total.

VASEP general secretary Truong Dinh Hoe predicted Vietnam could earn US$2.7-2.8 billion in the last quarter and meet the full-year target of US$8-8.1 billion.

The report also said that in January-August, the total area under tra fish farming nationwide rose by 1.9% year-on-year to more than 4,700 hectares while output increased by 10% to over 815,000 tons.

The acreage of brackish water shrimp nationwide expanded 4.2% from a year earlier to around 679,000 hectares. Farmers harvested a total of about 363,000 tons, up 21.4%.

HCMC proposes no-bid contracts for urgent infrastructure projects

HCMC on Monday asked the central Government for permission to award no-bid contracts for investors to implement urgent infrastructure projects.

These projects, which will be carried out in the public-private partnership (PPP) format, include phases one, two and four of Ring Road No. 2 project, and high-rise parking lots at September 23 Park, Ly Thuong Kiet residential area, Gia Dinh Park, District 8 bus terminal, and districts 5 and Tan Phu.

To ease traffic pressure on the main roads leading to Tan Son Nhat International Airport, the city suggested the Ministry of Transport reduce aircraft movements at the airport at rush hour and increase those at night.

The city also asked the Government for approval to proceed with a plan to test emissions of motorcycles with engine capacity of 175cc or higher in the 2018-2020 period. After 2020, the city will send a report on the plan to the Prime Minister before it carries out the next phase of the plan, in which motorcycles with engine capacity below 175cc will be tested for emissions.

For waterway transport, the city suggested the Ministry of Transport adjust the waterway transport plan for Cat Lai Port to make it compatible with the city’s general waterway transport development plan until 2020.

Tasks ahead for higher global value chain integration

In order to join the global value chain (GVC), Vietnam needs to expand production scale as well as improve labour capacity, product quality, and administrative capabilities.

According to a recent report released by the World Bank (WB), only 9% of enterprises operating in Vietnam are qualified for GVC. 

Most of these companies are foreign invested firms. Domestic companies qualifying for GVC are sub-tier suppliers with low value-added products.

According to Nguyen Duc Hong, vice director of Thong Nhat Rubber Co., Ltd, the company owns five manufacturing plants that provide supplementary goods in the fields of automobile, electricity, electronics, minerals, and mechanical engineering. 

However, such products can only be sold to secondary product suppliers and thereby, have insignificant added value.

For example, the company’s rubber antenna spring mounts are installed in Toyota's Innova cars. However, the company can only sell this particular product to antenna suppliers of the Japanese automobile makers.

In addition, a company needs to grant international certificates for each specific product type in order to become an official supplier in GVC. The evaluation costs US$15,000 per assessment and expires in three years, after which it needs to be renewed.

“Domestic firms cannot compete with foreign-owned suppliers in producing high added-value products, such as technological advancements, blueprints, and electronic components,” said Charles Kunaka, lead specialist on connectivity at WB.

Domestics firms are being constantly challenged as large-scale groups like Samsung, Toyota, and Ford trade with available global suppliers instead of local ones, Kunaka added.

Le Bich Loan, deputy director of the Saigon Hi-Tech Park Management Authority, addressed the capacity mismatch between local companies and foreign-invested ones. Foreign-invested enterprises (FIEs) tend to utilize global supply chain in manufacturing process in Vietnam.

In order to match foreign-invested manufacturers’ requirements, domestic companies should produce innovative goods with high quality, in consistent quantities, and at reasonable prices.

A representative of Samsung Vietnam said that the country should provide favourable conditions for prospective joint ventures with foreign-owned companies, expand production scale, upgrade manufacturing procedures and administration, support human resources training in order to prepare for technology transfer from FIEs.

Asya Akhlaque, senior economist at WB, also talked about how businesses should be supported by revamping procedures, administration, and management in governmental agencies. 

Likewise, local companies need to enhance labour capacity and upgrade infrastructure.
     
KIDO Food to trade on UPCoM by end of month

KIDO Food, the frozen food arm of the KIDO Group Corporation (KIDO), will trade on the Unlisted Public Company Market (UPCoM) by the end of this month, with 56 million shares trading under the code KDF.
Vietnam Securities Depository (VSD) recently announced the issuance of a certificate of securities registration and granted a code to KIDO Food.
In March this year, KDF sold 11.2 million shares, or 20 per cent of charter capital, at an offering price of VND52,000 ($2.3) per share, to reduce KIDO’s holding and publicize the company.
The latest report from Euromonitor shows that the KIDO Group has maintained its leading position in ice cream and frozen desserts, with a 40 per cent share so far this year.
Ice cream and frozen desserts have seen retail volume growth of 7 per cent and retail value growth of 15 per cent this year, reaching 26,600 tons and nearly VND3.1 trillion ($136.4 million).
More new product developments from big players have diversified the ice cream and frozen dessert category. Multi-pack dairy ice cream is enjoying the strongest retail value growth this year, of 19 per cent, albeit from a low base, and from efforts to increase the accessibility of such products, especially by leading players such as KIDO and Unilever Vietnam International.
The KIDO Group has continued to successfully strengthen its leading position in ice cream and frozen desserts, with 38 per cent and 40 per cent value shares in 2016 and 2017, respectively.
The company was officially renamed from the Kinh Do Corp. to the KIDO Group last year, after the sale of its confectionery and biscuit business unit to Mondelez International Inc.
Its strong brand names Celano and Merino, its nationwide distribution network, active marketing activities, good flavors, competitive prices and wide range of products in ice cream are its competitive advantages.
In 2016 and 2017 the company not only continued to lead the category but also enjoyed the strongest value growth.
KDF targets holding a 50 per cent share of the ice cream market in Vietnam by 2020. It currently has more than 70,000 points of sale around the country and plans to increase this by 10,000 to 20,000 each year.

HDBank to buy additional 2.54mn Vietjet shares

HDBank has announced it has registered to purchase an additional 2.54 million shares in the Vietjet Aviation JSC (VJC) from September 21 to October 13, according to an announcement from the Ho Chi Minh Stock Exchange (HSX).
The transaction will be done via order matching or agreement.
 
If the purchase is completed, HDBank’s stake in Vietjet will rise to 4.95 per cent. The bank was a founding shareholder in the carrier and the new investment is good news for the bank.
 
Vietjet is ready to close the list of shareholders to distribute 40 per cent bonus shares on September 25. It shares are now trading at VND137,100 ($6), up 52.3 per cent since it was listed on February 28.
 
Total revenue in the first half of this year was VND16.39 trillion ($745 million), up nearly 31 per cent year-on-year. Revenue in the second quarter reached VND11.283 trillion ($512.86 million), up 89 per cent year-on-year.
Consolidated pre-tax profit was VND1.482 trillion ($67.36 million) in the second quarter and VND1.9 trillion ($86.36 million) in the first half, up 44.7 per cent.
In its latest report, MBS Securities wrote that revenue could reach VND38.446 trillion ($1.7 billion) and after-tax profit VND3.695 trillion ($162.5 million) this year, 8.8 per cent higher than the target, with earnings per share expected to be VND11,464 ($0.5).
Vietjet Air officially listed on HSX on February 28. The first airline in Vietnam to be listed on the stock market, its capitalization stood at VND27 trillion ($1.2 billion) as at February 15, accounting for 1.5 per cent of HSX’s total capitalization.
The airline joins the ranks of the “VN 30”; Vietnam’s largest publicly-traded companies in terms of market capitalization.     

Vietcombank named Vietnam’s best bank in 2017 by Alpha SEA

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has been named the best bank in Vietnam in 2017 by Alpha Southeast Asia (Alpha SEA) magazine.

The annual award, the first and only one focusing on Southeast Asia, is presented to outstanding financial institutions in the region. This is the 11th year the Hong Kong-based magazine has conducted the award.

In Vietnam, Vietcombank is given credit for its efficient business strategy and management model with a view of offering its customers services that meet international standards.

The lender is also recognised for its effective adaptation to new developments in the market and responding to customers’ needs.

With this award, Vietcombank continues to affirm its position as one of the best-performing banks in the domestic market, and its goal of becoming one of the top 100 financial institutions in the region and to reach the global top 300 by 2020.

In the past, Vietcombank was also named Vietnam’s best bank, best trade finance bank, best FX bank for corporates & financial institution in 2014, and Vietnam’s best bank in 2015.

In 2016, the bank’s total assets reached 787.9 trillion VND (34.7 billion USD), up 16.8 percent year-on-year, and reported a pre-tax profit of 8.52 trillion VND (375 million USD).

State capital at credit institutions to be assessed

Credit institutions in which the State controls over 50 percent of charter capital will now be subject to assessment, according to a circular drafted by the Ministry of Finance.

The assessment will be based on five criteria: total revenue, after-tax profit and after-tax profit margin over equity, bad debt ratio and potentially irrecoverable debt ratio, observance of legal regulations and Government’s policies; and implementation of public utility products and services.

For the first criterion, the circular states that the total turnover is determined according to the balance in the bookkeeping accounts of the credit institution.

Under the second criterion, after-tax profit is the net profit from business activities after deducting expenses for provisioning risky loans and corporate income tax. The ratio of after-tax profit to the owner’s equity is determined by the percentage of after-tax profit divided by the average equity in the year.

For the third criterion, the draft regulates that the non-performing loan (NPL) ratio is the ratio of outstanding NPLs (including subprime debt, doubtful debt and potentially irrecoverable debt) against total outstanding loans (including standard debt, debt needing special attention, subprime debt, doubtful debt and potentially irrecoverable debt.

For the ratio of potentially irrecoverable debt, the draft circular states that it is the ratio of outstanding potentially irrecoverable loans to the total outstanding loans.

Debts in Việt Nam are classified into five groups based on their risk status: standard debt, debt needing special attention, subprime debt, doubtful debt and potentially irrecoverable debt.

Precision engineering show to be held in Hanoi on October

The International Precision Engineering, Machine Tools and Metalworking Exhibition and Conference (MTA) will return to Hanoi on October 11-13.

With over 170 exhibitors from 19 countries and regions expected at MTA Hanoi 2017, the event promises to be the ideal international trading platform for sourcing, procurement and industry exchange.

Foreign top-notch enterprises in the manufacturing industry that confirmed to be present at the show include Big Daishowa, Beijing Jingdiao, Carl Zeiss, Doosan Infracore, Mitsubishi Electric, and Nikon, together with those from Vietnam such as Cybertech, Tinh Ha, Bibus, and Van Su Loi, making this year’s trade show the largest and most comprehensive edition ever since its inception in 2010.

BT Tee, General Manager of UBM VES – the organiser of the exhibition, said that the return of the MTA Hanoi will meet metalworking and production requirements and help factories in the northern region in bettering their production chains and expand investment scales.

MTA HANOI 2017 is expected to provide visitors with an opportunity to join many educational sessions and interactive seminars. 

Focusing on the theme of Industry Revolution 4.0, a comprehensive two-day programme compiled by the Lean Six Sigma Network will cover a variety of pertinent topics that can add value to business operations and increase its competitive edge. 

In addition, the exhibition will also include some symposiums hosted by Multi Engineering Solutions Laboratory (MESLAB) and other well-known associations, allowing delegates to hop on the bandwagon, impart technological updates and understand market dynamics through a variety of inspiring case studies and thoughtful presentations.

The MTA HANOI 2017 is expected to draw almost 5,000 trade visitors from about 15 countries and regions. The previous edition, held on April 26-28, 2016,  attracted more than 4,600 foreign trade visitors.

The similar exhibition was organised in Ho Chi Minh City on July 4-7.

Foxconn looks to expand investment in Bắc Ninh

Foxconn expects the northern province of Bắc Ninh will continue providing favourable conditions and introduce investment locations where there is ample land and convenient transport infrastructure to expand its production.

This was stated by group vice chairman Lu Fang Ming.

According to information on the province’s official portal bacninh.gov.vn, Foxconn officials held a meeting with the provincial People’s Committee earlier this week.

Chairman of the provincial People’s Committee Nguyễn Tử Quỳnh highly appreciated Foxconn for providing jobs and a stable income to thousands of locals and contributing to the State budget.

Quỳnh also introduced some potential industrial parks with favourable transport and modern infrastructure for Foxconn to expand its production.

In addition to the Government’s preferential policies, Bắc Ninh will also have its own specific preferential policies for projects with significant investment.

Foxconn has been in operation for 10 years and specialises in electronic spare parts, IT and telecommunications in Bắc Ninh.

Its factory employs more than 34,000 labourers. Last year, its turnover reached over US$1.5 billion.

In addition to outsourcing and manufacturing for some of the world’s large electronic firms, Foxconn is engaged in mobile phone production for three brand names -- Nokia, Sharp and Infocus.

Bắc Ninh is among the localities with the fastest growth rate in the country, attracting FDI with total investment of some $15.5 billion.

SHB to increase charter capital to US$527.9 million

The State Bank of Việt Nam (SBV) has permitted Sài Gòn-Hà Nội Commercial Joint Stock Bank (SHB) to raise its charter capital to over VNĐ12 trillion (US$527.9 million).

This increase from the current VNĐ11.2 trillion ($492.7 million) was allowed as part of a plan approved at this year’s SHB shareholder meeting.

SHB will take responsibility for implementing the plan, according to the relevant laws and regulations including the stock ownership limit of its shareholders.

After completing procedures to issue shares, the bank is required to submit an application to the SBV to revise the charter capital.

This year, SHB targeted assets of VNĐ270 trillion, posting a 15 per cent year-on-year increase and capital mobilisation of VNĐ217.3 trillion, or 20 per cent higher than that of last year. Its total outstanding was estmiated at VNĐ191.6 trillion with a pre-tax profit of VNĐ1.75 trillion, representing 18 per cent and 50 per cent increases respectively.

It also planned a dividend payment of 9 per cent while the bad debt rate was less than 3 per cent.

MTA HANOI 2017 features many international pavilions

The 5th International Precision Engineering, Machine Tools and Metalworking Exhibition & Conference featuring the latest technologies and equipment will be organised in Hà Nội on October 11-13.

More than 190 exhibitors from 19 nations and territories, including several newcomers, will display their products and services. It is expected to attract some 5,000 visitors.

Taking place at the Hà Nội International Centre of Exhibition (ICE), the show will be the largest and most diverse edition in its long history, with exhibits covering the entire manufacturing value chain, spread over 4,500sq.m of exhibition space.

The event will see the participation of many international firms and showcase technology solutions that will be introduced for the first time in Việt Nam. These include Big Daishowa, Beijing Jingdiao, Carl Zeiss and Dine, as well as Doosan Infracore, Fischer Instrumentation, Makino and Marposs, along with Mitsubishi Electric, Mitutoyo, Nikon and NT Tool, in addition to Optical Gaging, Renishaw, Sandvik, Sodick and Sumitomo.

Representatives from Việt Nam will be also a highlight at this year’s event, with prestigious brand names such as Cybertech, Tinh Hà, Bibus, Vạn Sự Lợi and CAD/CAM showcasing modern products and solutions specifically designed for the local market.

The exhibition will focus on new products and hands-on experience in metal-forming, laser cutting and machining tools; CNC lathes; milling machines and electric discharge machines; as well as metrology and test equipment; laser systems; and other machine parts.

“After over a decade of being part of Việt Nam’s mechanic sector, we realised that the market’s scale in the northern region was half of the southern region. However, this is an open and rich potential market for development. This is the reason we are bringing the exhibition to Hà Nội in particular and the northern region in general,” BT Tee, general manager of UBM VES, the organiser said.

Like in previous editions, MTA HANOI 2017 continues to receive staunch support from various international associations, with seven country and territories group pavilions from South Korea (four groups), Singapore, Taiwan (China) and Thailand.

Michael Wang, general manager of Beijing Jingdao Việt Nam said: “Our participation in MTA events over the years has enabled us to reach out to Việt Nam’s evolving manufacturing sector. We have noted that Việt Nam’s manufacturing capability has grown and as such, its increased appetite for more high-value machinery and solutions.”

MTA HANOI 2017 will also have seminars, interactive workshops and lively panel debates on some of the current issues affecting the manufacturing and precision engineering sectors. A wide range of topics will be discussed at the seminars, including new paths to the fourth industrial revolution, Internet of Things (IoT) and smart manufacturing; technological trends and practical applications of Industry 4.0; industrial safety and security solutions; and intellectual property protection in the new era of the industrial revolution.

MTA HANOI 2017 is being organised by UBM VES – Việt Nam’s leading trade exhibition and conference organiser – and supported by the VCCI Exhibition Service.

VNA operates 4 HN-Tuy Hòa flights per week

National carrier Vietnam Airlines (VNA) will re-open flights between Hà Nội and Tuy Hòa in the central coastal province of Phú Yên, with a frequency of four flights per week from October 1.

The flights depart from Hà Nội at 11.30am and from Tuy Hòa at 1.50pm on Tuesdays, Thursdays, Fridays and Sundays. The latest route is expected to be favourable for businesspeople and leisure travellers. The Airbus A321 aircraft, which are comfortable, spacious and have four-star service, will serve passengers.

On the occasion of the re-opening, Vietnam Airlines launched the programme "Discovering the land of yellow flowers on the green grass," offering customers an attractive one-way price of VNĐ499,000 (US$21.9) for economy class and VNĐ3,199,000 for business class on the route.

Tickets can be bought until September 30 and are applicable for departure from October 1 to December 31.

The above rates do not include taxes, fees and charges. Tickets are being sold at ticket offices, official Vietnam Airlines agents nationwide and Vietnam Airlines website www.vietnamairlines.com.

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