SMEs benefit from State’s business support policies

Small- and medium-sized enterprises (SMEs) will benefit from many support policies of the State, especially those in information support; consultation; human resources development; startup and innovation; and value chain participation.  

Under Decree 39/2018/ND-CP recently issued by the Government, SMEs will be free to access information in the national information portal for supporting SMEs managed by the Ministry of Planning and Investment, and other information portals managed by ministries, ministry-level agencies, municipal and provincial-level People’s Committees. 

To help SMEs develop their human resources, the State budget will support at least 50 percent of the total cost of a business start-up and business administration training course for SMEs. Meanwhile, SMEs in advantaged areas and those owned by women will be exempted from tuition fees for training.

Business households, which register to shift to enterprises, will be given free consultation and guidance. 

SMEs converted from business households meeting paperwork conditions will be exempt from the enterprise registration fee for the first time at business registration offices, and the fee for publicising the content of first-time enterprise registration at the national business registration portal.

They shall also be exempted from appraisal fee and first-time business licensing fee for conditional business lines; and license fee within three years from the date of issuance of the first enterprise registration certificate. 

SMEs will also benefit from other support policies concerning intellectual property consultancy; intellectual property exploitation and development; the implementation of procedures on standards, technical regulations, measurement and quality; the pilot of new business models; technology application and transfer; trade promotion and commercialisation, among others.

Vietnam-EAEU trade deal pushes exports to Russia

Russia is one of the important export markets of Vietnam, especially after the Vietnam-Eurasian Economic Union (EAEU) Free Trade Agreement took effect on October 5, 2016.

Statistics released by the General Department of Vietnam Customs showed that in the first two months of 2018, Vietnam-Russia trade reached 657.7 million USD. Russia spent 343.4 million USD purchasing Vietnamese products, including phones and spare parts, coffee, computers, electronic products, garments and aquatic products.

As compared to the same period in 2017, the strongest export growth was recorded by ceramic products (119.6 percent), followed by cashew nuts (95.6 percent) and steel (82.6 percent).

Meanwhile, Vietnam disbursed 314.2 million USD to import commodities from Russia, including 73.5 million USD for wheat and 71 million USD for steel.

After the Vietnam-EAEU trade deal came into force, two-way trade between Vietnam and Russia enjoyed robust growth with a year-on-year increase of 25.4 percent to 2.7 billion USD in 2016 and a rise of 30 percent to 3.6 billion USD in 2017. Vietnam saw a trade surplus of 491.7 million USD in 2016, 800 million USD in 2017 and nearly 30 million USD in January-February in 2018.

High-quality goods with competitive prices should be developed by Vietnamese exporters if they want to boost shipments to Russia to take advantage of the trade pact, according to the Vietnam Trade Office in Russia. 

The office also advised Vietnamese exporters to seek reliable partners as importers in Russia prefer the form of deferred payments.

In the coming time, the office will introduce more potential partners to Vietnamese businesses while studying more about commitments in the World Trade Organisation and other free trade agreements to give prompt forecasts about barriers that can hamper Vietnamese exports.

The moves aim to elevate the bilateral trade value to 10 billion USD by 2020 as set by leaders of the two countries.

Phu Tho wants more investment
     
The northern province of Phu Tho aims to attract domestic and foreign direct investment capital worth between VND5.5 trillion and VND6 trillion (US$244.5-263.2 million) this year, an increase of 10-15 per cent year-on-year.

The province wants investment projects in high technology industry and supporting industry, which can contribute to the State budget and socio-economic development of the province.

To achieve the goal, the province will enhance reforms and administrative procedures simplification, shorten time to solve administrative procedures, improve the investment environment and increase provincial competitiveness.

Provincial leaders will also meet with investors, enhance professionalism of officers and promote investment focusing on potential projects.

Nguyen Minh Xuyen, deputy director of the provincial planning and investment department, said that last year, the province organises 30 meetings with both domestic and foreign investors.

In term of local businesses, the province has invited many potential investors such as Trung Nam Group, Vingroup, Sun Group, Song Hong Thu Do and Thaco Truong Hai.

The province last year also granted licences for 181 investment projects, including 169 domestic ones with total registered capital of VND8.78 trillion and 12 FDI with total capital of $254 million.

The number of newly registered enterprises last year was 586, up 10.5 per cent compared to 2016 and registered capital was estimated at VND3.78 trillion, up 67 per cent year-on-year. 

Work begins on $8m Da Nang digital project
     
The construction of a VND182 billion (US$8 million) digital project began on Tuesday in the Da Nang Hi-tech Park, making it the first of its kinds in the city and the central region.

Financed by the East Sea Technology Engineering Electrical Automation Company (ESTEC), the project will be divided into two phases, according to baodautu.vn.

In the first stage, the investor will establish a research and development centre for automation and hi-tech development, a centre for implementing and providing solutions, products, and services in line with Industry 4.0 and a centre for automation and hi-tech training.

The second stage of the project will concentrate on expanding the hi-tech research centres.

Head of the Da Nang Hi-tech Park’s management board Phung Tan Viet said the park has thus far attracted 10 projects with total registered investment of more than $249 million, covering an area of nearly 35ha. Among these projects, three are entirely financed by Japanese investors.

Viet said his park has prepared more than 300ha of cleared land with essential infrastructure facilities for new investors and those who want to expand their projects here.

Dung Quat to develop container lines at seaports
     
Dung Quat Economic Zone will develop specialised lines at ports to serve container ships due to a high demand on transporting goods containers.

This was announced by the management board of Dung Quat Economic Zone.

At present, seaports in the economic zone do not have lines serving container ships, creating pressure on the management of the zone.

Investors have also proposed ports for container ships to reduce transportation costs for investment projects in Dung Quat Economic Zone as well as industrial parks in Quang Ngai Province. Now, containers of export goods must be transported to Da Nang or some neighbouring seaports in the central region.

Dam Minh Le, deputy director of the management board of Dung Quat Economic Zone and industrial zones in Quang Ngai Province, said Hoa Phat Dung Quat Iron and Steel Complex and a number of other projects were strongly developed.

Moreover, the volume of goods at the ​​Viet Nam-Singapore Industrial Park has increased rapidly, while a series of economic zones in the region have large volumes of cargo. The volume of goods passing through Dung Quat port has thus created demand for building lines for containers at ports, he said.

The management board has called on port operators to open lines at ports for container services this year.

Dung Quat Economic Zone has eight ports, seven of which are functional, including Hao Hung, PetroVietnam Technical Services Corporation (PTSC), Gemadept, Doosan, Dung Quat oil refinery and Dung Quat Shipbuilding Industry Co. Ltd. One specialised port is under construction by Hoa Phat Steel Joint Stock Company.

General ports such as Hao Hung, PTSC and Gemadept can receive 50,000-70,000 DWT vessels. The cargo output at Dung Quat Economic Zone is over 17 million tonnes annually. The products and material imported and exported through the ports include wood chips, fuel oil, household products and garments.

Meanwhile, Dung Quat Economic Zone is yet to develop logistics services. Only PTSC has provided services on customs procedures for the import and export of goods through Dung Quat port. The port doesnot have warehouses either.

At present, the management board is focused on creating favourable conditions for operation of the deep-water ports, aiming to turn the ports to a huge advantage point for the development of Dung Quat Economic Zone. 

Rubber prices fall, firms fret
     
Natural rubber prices have been falling since the second half of last year, making rubber enterprises pause for thought before making business plan for 2018.

Rubber prices now stand at about VND36 million per tonne (US$1,600), down 10 per cent compared with last year.

Some major rubber producers have also performed poorly in the first two months of the year.

Dong Phu Rubber (DPR), a subsidiary of the Viet Nam Rubber Group (VRG), plans to sell rubber at an average of VND36.56 million per tonne, down 8.4 per cent compared to 2017. The company hopes to earn nearly VND732 billion in revenue and VND190 billion in gross profit, down 12.5 per cent and 25.3 per cent year-on-year, respectively.

DPR’s average rubber selling price was VND36.6 million per tonne in the first two months of this year, down 25 per cent year-on-year, which led to a 2-per-cent drop in revenue to VND112 billion, and therefore bringing gross profit down from VND63 billion to VND47.4 billion.

Of the gross profit, profit from rubber production was VND9.2 billion, down nearly VND18 billion compared to the same period last year.

Similarly, in 2018, Phuoc Hoa Rubber Co (PHR) plans to sell rubber at an average price of VND37 million per tonne, significantly lower than 2017’s price of VND40.39 million per tonne.

Nonetheless, thanks to revenue from other sources, PHR’s 2018 business plan is expected to be equivalent to 2017, with VND1.6 trillion in revenue and VND400 billion in pre-tax profit.

The company also earns revenue from other sources, such as revenue of the hand-over of land for the operation of industrial parks, including the Viet Nam-Singapore Industrial Parks in the central province of Nghe An and the Nam Tan Uyen Industrial Zone in the southern province of Binh Duong.

It also leases land for the operation of Tan Binh industrial park in HCM City.

Another producer, Tay Ninh Rubber JSC (TRC), plans to sell rubber at an average price of VND36.5 million per tonne, VND1 million lower than last year. The company plans to achieve VND498 billion in revenue and VND113 billion in pre-tax profit, down 1 per cent and 31.5 per cent over the same period last year, respectively.

In addition, the company also lowered its target production output from VND9,800 tonnes to 8,700 tonnes, processed output from 14,800 tonnes to 12,700 tonnes and productivity from 2.14 tonnes per hectare per year to 1.96 tonnes per hectare per year.

Although business plans for 2018 have not been announced yet, the business results of Hoa Binh Rubber Co (HRC) in the first two months of this year showed a decline.

During the two months, the company exploited 368.13 tonnes of rubber, reaching 14.16 per cent of the yearly plan (2,600 tonnes).

It purchased 247.6 tonnes while selling 377.23 tonnes, earning revenue of VND12.95 billion.

HRC estimated that its first quarter’s revenue would reach VND18.3 billion and after-tax profit would be VND1.35 billion. Compared with the same period last year, revenue would increase slightly but after-tax profit would fall by 20.5 per cent.

In its strategy report of 2018, Viet Dragon Securities Co (VDSC) gave a negative assessment for the rubber cultivation industry in the short term but a positive one in the long-term.

Meanwhile, MayBank KimEng Securities Corp’s (MBKE) forecast that rubber prices may recover slightly due to some supportive information such as the Thai government announcing a price subsidy progamme of 20 billion baht since December 2014 and large rubber producers like Thailand, Malaysia and Indonesia agreeing to cut rubber exports.

Recently, the Thai government plans to issue bonds to raise 30 million baht (US$1 billion) to cut excess rubber, driving prices up. Thai Agriculture Minister Grisada Boonrach plans to cut about 1-3.3 million tonnes of excess rubber by the end of this year. 

Mechanical engineering sector to lift exports by 2020
     
Viet Nam’s mechanical engineering industry is striving to apply advanced technology, produce high-quality products meeting international standards and join the global value chain by 2035.

The targets were set out in a strategy approved by the Prime Minister for the industry’s development by 2025, with a vision to 2035.

The industry will also focus on the efficient use of energy, maintaining competitiveness during international integration and establishing a disciplined, professional and qualified work force that is proactive in conducting research, designing products and manufacturing.

Exports are expected to account for 35 per cent of the total production by 2020. This proportion will increase to 40 per cent by 2030 and 45 per cent by 2035.

Under the strategy, the focus will be on developing automobile engineering, agricultural machines, industrial products and electronic appliances to meet the basic domestic demand, as well as create volume for export. Meanwhile, engineering support companies will be established to provide supplies for production units to join the global value chain.

Relevant authorities must complete mechanisms to support the mechanical engineering sector, by giving preferential taxes and simplifying the investment procedures. The policies must aid the support industry and encourage participation in the production value chain, as well as in the development of domestic production.

The PM has ordered the development of basic materials and advanced technologies for the sector.

The sector must also attract powerful multi-national corporations to invest in the country’s big engineering projects. Investment promotion should be prioritised for small and medium enterprises, especially those in the support industry.

The State will support enterprises to renew technology and their production facilities, as well as to apply advanced technology and management in production to improve efficiency in the use of energy and input materials, product quality and competitive ability.

It will also support businesses in diversifying products, as well as building and developing brands.

The State has a credit policy for mechanical equipment manufacturers who want to develop their production and business. It will establish an information system for the mechanical engineering sector to have a database for state management agencies and enterprises. 

SHB launches mobile app to make payments
     
Sai Gon – Ha Noi Commercial Joint Stock Bank (SHB) on Tuesday introduced quick response (QR) Pay through its mobile application, allowing customers to make transactions without cash or cards.

Customers can transfer money and buy goods at shops and supermarkets using the QR Pay payment system installed on their mobile phones. The QR code provided by sellers will be scanned by the camera on the phone.

The application is expected to help SHB’s customers enjoy quick and convenient payment options.

SHB has also co-operated with VNPAY to launch a large promotion programme.

Nguyen Van Le, SHB’s general director, said the bank would continue to promote investment in technologies to take advantage of the Fourth Industrial Revolution while enhancing solutions to ensure information security in their system, thus bringing the best benefit to its customers. 

EVN to withdraw from electrical equipment company
     
Viet Nam’s power group, Electricity of Viet Nam (EVN), will sell its 13.13 million shares, or 46.47 per cent stake, in Dong Anh Electrical Equipment Corporation JSC (EEMC).

The sale of shares will be carried out through the order-matching method on the Unlisted Public Company Market (UPCoM) between April 2-27.

The deal is to comply with the Government’s policy on restructuring subsidiaries of EVN during 2017-20.

EEMC is trading more than 28 million shares on UPCoM with code TBD.

In 2017, EEMC recorded VND2.9 trillion (US$129.5 million) in total revenue, a yearly increase of 34 per cent, but its post-tax profit fell slightly to VND111 billion from VND113.5 billion in 2016.

The company shares started trading on UPCoM on October 15, 2014, and gained 0.94 per cent on Wednesday morning to reach a record high of VND43,000 ($1.91) per share.

EVN had earlier announced it would sell its entire 40.5 per cent stake in the Thu Duc Electro-Mechanical JSC as well.

If EVN succeeds in offloading its ownership in the two electrical companies, it will only hold stakes in four other listed companies, which are Power Engineering Consulting JSC 1, 2, 3 and 4. 

Ninja Van officially launches in Viet Nam
     
Ninja Van, Southeast Asia’s technology-enabled logistics company, has announced the official launch of its operations in Viet Nam.

“We aim to ‘take the hassle out of the parcel’, making logistics fuss-free so our customers can focus on their business,” says Phan XuanDung, country representative head of Ninja Van Viet Nam.

“According to research by eShopWorld, there are currently over 35 million e-commerce users in Viet Nam, and this number is expected to grow to 42 million by 2021. This presents a huge opportunity for us to offer e-commerce retailers and online sellers in Viet Nam access to Ninja Van’s fully integrated and customisable system, ensuring packages reach their customers on time,” said Dung.

Known for offering customised options, accessible customer support services and hassle-free delivery experiences to e-commerce merchants and social sellers, Ninja Van currently delivers across the whole of Viet Nam.

Ninja Van also operates in five other markets across the region - Singapore, Malaysia, Indonesia, Thailand and the Philippines. After the successful conclusion of its Series C funding round in late January 2018, the capital raised will be used to boost the growth and expansion of its business in Viet Nam.

“The recent capital raised from our Series C funding will be used to enhance our technology and operational capabilities to help Ninja Van continue our drive in offering a superior experience to all our sellers and customers in Viet Nam,” said Dung.

Ninja Van Vietnam started operations in the country in 2016. In two years, it has increased its delivery services system to over 1,000 riders and drivers. It currently delivers 300,000 parcels every month and has established partnerships with e-commerce clients such as Lazada, Sendo and Tiki. 

VinFast introduces 2 electric cars, 1 small sedan
     
Two models of electric car and a small sedan from Ital Design have been voted the favourite by Vietnamese people in a contest organised by Vingroup.

Titled “Choosing lovely car with VinFast-2”, the contest was organised by VinFast Manufacturing and Trading Company Limited from March 8-18.

Nearly 300,000 people took part in the contest.

Electric car IDG EV A and small sedan IDG ICE A were the top models, with 22.8 per cent and 21 per cent votes, respectively, out of 36 models, thanks to their fashionable style. The overall design closely resembles the design of electric vehicles and small cars around the world, while some models incorporate subtle Oriental symbols, such as bird wings or flaming eyes with fire inside.

Both the winning models have the iconic “V” symbol flying up on the car head, denoting the pride of Viet Nam.

The IDG EV A emphasies the width with definitive lines, expressing its sporty and dynamic style. The design of IDG ICE A, on the other hand, highlights both simplicity and sophistication.

Nguyen Viet Quang, Vice President and CEO of Vingroup, said following the success of “Choosing Love with VINFAST-1”, the group decided to hold another contest, putting their trust in the consumers’ taste.

“Our goal is not only to create modern, trendy and world-class VinFast cars but also to showcase the pride of the Vietnamese car brand,” Quang said.

According to him, the contest achieved two criteria: choosing the right car designs in the shortest time. The process of determining the winners was public and transparent as everything was announced on the website, www.binhchonmauxe.vinfast.vn, in the presence of representatives of the Trade Promotion Agency under the Ministry of Industry and Trade.

The first prize was a voucher worth VND200 million to buy VinFast products and was won by Cu Hoang Dat, a resident of Tay Nguyen (Central Highlands) in the province of Gia Lai. Other lucky winners received valuable prizes such as two vouchers worth VND50 million each, 30 vouchers worth VND10 million each and 100 VINID GiftCards worth VND2 million each.

The award ceremony will be held on March 24 at the Almaz Food and Conference Centre in Ha Noi.

According to the company’s plan, VinFast will launch its electric car and small car by the end of 2019, earlier by a year. The company will also launch two models of sedans and SUVs, which are being developed based on the design voted by consumers in the “Choosing lovely car with VinFast-1” contest held at the Paris Motorshow in October 2018 and in Viet Nam in December 2018.

In just over four months, VinFast has announced 56 designs for four models: sedans, SUVs, small cars and electric cars, made by the world’s leading car design studios. At present, the company is focused on urgently completing other works, including construction of a factory in Dinh Vu-Cat Hai economic zone in northern Hai Phong City, collaboration with major partners in building factories and development and production of vehicles.

Bình Dương invites investment from Thai firms

The southern province of Bình Dương called on Thai business firms to invest in the locality at a workshop held in Bangkok on Wednesday.

During the event, hosted by Becamex IDC Corporation and the Federation of Thai Industries (FTI), Bình Dương presented its economic potential and investment opportunities for Thai enterprises, making them aware of the investment procedures in the province as well as country.

Bùi Minh Trí, head of the Management Board of Bình Dương’s Industrial Zones (IZs), said the province’s IZs are home to 18 Thailand-invested projects worth US$600 million, including renowned names such as SCG, CP, TCC and SriThai.

The province will continue to improve its investment environment to help foreign investors, including those from Thailand, operate more efficiently in the locality, Trí said.

Bình Dương is now one of the leading destinations for foreign investors. To date, the province has attracted $28.7 billion in 3,602 projects from 63 nations and territories.

In his speech at the event, FTI Vice President Kriengthai Thiennukul spoke highly of Việt Nam’s advantages, including stable politics, abundant workforce, investment incentives and increasing purchasing power.

He encouraged Thai firms to tap the opportunity to connect with Vietnamese partners. Thailand today is one of the major economic partners of Việt Nam in ASEAN. The two nations are striving to raise bilateral trade to $20 billion by 2020. In terms of investment, Thailand is Việt Nam’s 10th largest source of foreign direct investment, with 480 projects capitalised at $8.5 billion.