Vietnam, EU boast high potential to bolster partnership

There is room for Vietnam and the European Union to further bolster their economic, trade and investment cooperation although their partnership is growing strongly, said Deputy Foreign Minister Bui Thanh Son at the “Meet Europe 2018” that was held in Hanoi on May 24.

The Deputy FM said that Vietnam and the EU have enjoyed sound relations despite the complicated regional and international situation with fierce competition and trade protectionism.

After a framework agreement on comprehensive partnership and cooperation between Vietnam and the EU took effect, the bilateral ties have been expanded in various fields and become more effective, he noted, adding that the EU has not only been the largest non-refundable development aid provider of Vietnam but also the second biggest trade partner and leading investor of the country.

Son said that Vietnam has shared fruitful strategic partnership with the UK, Germany, France, Italy and Spain, while setting up comprehensive partnership with Denmark, strategic partnership on climate change adaptation with the Netherlands, as well as traditional relations with many countries in Northern and Central Europe such as Sweden, Finland, Poland, Hungary, Romania, the Czech Republic, Slovakia and Bulgaria.

In the European Free Trade Association, Vietnam has enjoyed growing ties with Switzerland, Norway, Iceland and Liechtenstein.

Local-level cooperation between Vietnam and Europe has also developed effectively with the increasingly diverse engagement of many partners, stated Son.

However, Son said that there is potential for Vietnam and Europe to expand their partnership. The signing and approval of the free trade agreements between Vietnam and the EU as well as the European Free Trade Association in 2018 are expected to bring about new breakthroughs in bilateral ties.

The pacts are hoped to create new momentum for the two sides to optimise market potential, resulting in new cooperation and investment opportunities for enterprises.

The Deputy FM stressed that the Vietnamese Government has drastically implement synchronous measures to improve its investment and business environment, ensuring that the business community from other countries, including those from Europe, operate smoothly and efficiently in Vietnam.

Meanwhile, Ambassador Bruno Angelet, Head of the EU Delegation to Vietnam, said that the free trade agreement between Vietnam and the EU will be signed later this year.

He said that the two sides should make reform and adjustments to seek proper measures to ensure the effective implementation of the deal.

He held that the ‘Meet Europe 2018’ will help bring about new business chances for European firms and Vietnamese localities as well as lure more investment.

The meeting is an event connecting enterprises with the Vietnamese Government. It is a joint effort between Vietnam’s Foreign Ministry and the European Business Association in Vietnam. 

Việt Nam waits for UK investment wave

Numerous favorable conditions have come together to make Việt Nam an attractive investment destination in the ASEAN, Asia and the world.

Its strategic geographic location, the free trade agreements it has entered into and improvements in the investment environment all make Việt Nam a prime target for a new wave of investments from the United Kingdom, Minister of Planning and Investment Nguyễn Chí Dũng said at a meeting with the British Business Group Vietnam (BBGV) and the British Accreditation Council (BAC) on Thursday. 

Investments in infrastructure and human resources training also contribute to Việt Nam’s attractiveness, he said.

At the meeting, Dũng highly appreciated the potential and capacity of UK businesses and expressed a desire to promote investment cooperation with British investors.

In terms of opportunities awaiting investors, UK businesses can fully participate in infrastructure investments through the public-private-partnership (PPP) model or indirect investments through merger and acquisition (M&A) activities, especially in the context of equitisation and divestment of State-owned enterprises, as they have strengths in infrastructure development, banking and finance, and management technology in many areas, the minister added.

He expressed hope that UK investors will not miss this opportunity, especially with the anticipated passing by the National Assembly of the Law on Special Administrative-Economic Zones, which is the basis for the establishment of three special zones featuring many institutions and preferential policies by the end of this year.

Businesses and financial institutions from the UK can participate as major investors or strategic investors in these special administrative-economic zones, Dũng said, adding that potential investors can take advantage of this new game with very competitive rules to join with the Government of Việt Nam in creating and organising the playground in these special zones. 

Programme to support local firms
     
The Viet Nam Industry Agency under the Ministry of Industry and Trade (MoIT), in partnership with the International Finance Corporation (IFC), a member of the World Bank Group, officially launched the Viet Nam Supplier Development Programme (SDP) in Ha Noi on Thursday.

This programme is aimed at helping Vietnamese companies become suppliers for multinational enterprises, while enabling existing suppliers to expand their business and share of added value.

Recently, multinational enterprises (MNEs) have implemented a number of large investment projects in Viet Nam, providing opportunities to expand domestic supply to these companies. One of the obstacles, however, is the lack of suppliers in the country meeting global standard requirements.

Given the scenario, the two-year SDP aims to help domestic suppliers meet the requirements of MNEs including quality, price and delivery throughout the value chain in targeted sectors. Subsequently, these firms can be linked to MNEs to seek supply opportunities in the future.

MoIT’s deputy minister Do Thang Hai, said capacity building to establish new business links with MNEs is the first step to enhance the competitiveness of participating local firms. “The purpose of this programme is to move the local firms to the process of creating higher added value in the value chain so that they can produce more sophisticated products and become globally competitive,” he added.

Over the next two years, the programme will work with eight leading MNEs in the automotive, electronics, energy and household appliance sectors, such as Bosch, Canon, Datalogic, Denso, Ford, General Electric, Panasonic and Toyota.

The enterprises were chosen based on their interest in sourcing locally and assisting local companies in finding business opportunities. Some 45 local companies, who are wholly or largely Vietnamese-owned, have been selected to join the programme based on recommendations by participating multinationals and various business organisations.

“Large foreign direct investments into Viet Nam with operations of leading global firms have brought up opportunities to promote Viet Nam’s supporting industry and facilitate local producers’ increased participation in the global value chain,” said Kyle Kelhofer, IFC country manager for Viet Nam, Cambodia and Lao PDR.

Developed in close consultation with MNEs, the programme will assess the business performance and competitiveness of participating suppliers, identify areas for improvement and specific actions to build supply capabilities, and improve long-term competitiveness. In addition, the programme will strive to connect potential businesses with potential buyers effectively.

“We are happy to work with local companies which could compete with suppliers from other countries,” said Yamamoto, corporate planning director, Panasonic Viet Nam. “We expect this programme can help us get business with some potentially long-term partners and promote our local sourcing,” Yamamoto added. 

Microsoft’s big punt on cloud computing
     
Microsoft said on Thursday that it is investing heavily in cloud and artificial intelligence (AI) technologies.

At the 2018 Azure Summit organised by the company in HCM City on Thursday, which attracted more than 200 developers, technology experts and IT managers, it unveiled a new cloud service called Microsoft Azure.

The company said it is not simply a cloud storage but offers more than 100 services with end-to-end tools.

It has become the first choice of 90 per cent of Fortune 500 companies, it claimed.

Security, privacy and compliance are embedded into its development methodology and it has been recognised as the most trusted cloud for US Government institutions with more than 70 compliance offerings, the company said.

Pham The Truong, country director of Microsoft Vietnam, said: “Without cloud, organisations will not have access to high-power computing and storage which supports big data analytics. Without big data analytics, emerging technologies like AI/cognitive/robotics will not be possible as they require data.”

Microsoft also said it has invested in AI research and achieved some significant milestones that would have seemed impossible even a few years ago.

At the beginning of this year, its researchers created a technology that uses AI to read a document and answer questions about it like a human being.

Sai Gon-Ha Noi Securities and SHB Securities officially merged
     
Sai Gon-Ha Noi Securities JSC (SHS) has completed the issue of nearly 5.4 million shares to swap with shares of SHB Securities JSC (SHBS), accomplising the merger of the two companies.

After the swap, the total outstanding shares of SHS increased to nearly 105.4 million, an equivalent to a charter capital of over VND1.05 trillion (US$46.2 million).

Towards the end of last year, Sai Gon-Ha Noi Securities approved the plan of merging SHB Securities JSC into the company in the form of a share swap. Accordingly, SHS would issue shares to SHBS shareholders in return for their shares at a swap ratio of 1:2.78, meaning 278 SHBS shares will convert into 100 SHS shares.

The newly-issued shares will be subject to trading restriction within one year.

In its annual shareholders meeting on April 24, SHS shareholders gave nods to the company’s plan of issuing 26.3 million shares to pay 2017 dividends at the rate of 25 per cent, as well as additional issue of 70.3 million shares to existing shareholders at the rate of 66.7 per cent at the price of VND12,000 per share.

Its charter capital is expected to increase to VND2.07 trillion after the issues.

The company reported a pre-tax profit of VND169 billion in the first quarter, a three-fold increase over the same period of last year.

Commercial banks to support firms
     
Business representatives have urged commercial banks to revise loan policies and simplify loan procedures to help them pursue investment opportunities.

Speaking at a seminar held on May 23 in Ba Ria–Vung Tau Province, representatives of many firms agreed that complicated loan policies and procedures had caused them to lose many investment opportunities.

The State Bank of Viet Nam’s Ba Ria–Vung Tau branch organised the seminar to connect banks and firms in the province.

The companies said that mortgage assets needed for loan applications posed a significant challenge for them. Many firms with multiple businesses have already had to use mortgage assets to run their overall businesses, they said.

Banks should allow firms to use business contracts as mortgages to apply for a loan, provide start-ups with more preferential loan policies, and revise existing policies that might no longer be relevant with reality, they recommended.

Banks should also be more flexible when it comes to unsecured loans and have a stable interest rate for both short-term and long-term loans.

Nguyen Loi, director of the State Bank of Viet Nam’s Ba Ria–Vung Tau branch, said the bank would collaborate with relevant agencies to launch more programmes, with an aim to enhance connections between banks and business firms.

Credit institutions in the area said they had sufficient resources to support individual clients and firms that show potential and have effective business plans.

The SBV will evaluate feedback from business firms and offer necessary support to help firms thrive.

In July last year, the bank sector in the province proposed solutions to help business firms deal with difficulties.

Some programmes included 0.5 per cent deduction in short-term interest rates, and preferential loan policies for firms in the organic, high-tech agricultural sector, among others.

As of April 2018, the total outstanding loans for the economic sector had reached nearly VND62 trillion, up 5.9 per cent compared to the beginning of the year, and up 17.61 per cent year on year.

Ba Ria–Vung Tau continues to have stable capital growth, ensuring economic development.

Only 2% cooperatives have access to loans
     
Cooperatives play an important role in improving the capacity and position of the economy. However, statistics of the Viet Nam Cooperative Alliance (VCA) show that only some 2 per cent of cooperatives have access to loans, while most still manage by themselves, VCA chairman Nguyen Ngoc Bao said.

According to a report of VCA, cooperative economy and cooperatives have rapidly developed in both quantity and quality, with turnover and profits increasing each year. However, many Vietnamese cooperatives still have internal problems, especially in the new period with the national start-up movement and the application of high technologies in agricultural development launched by the government.

To date, Viet Nam has more than 20,000 cooperatives, 93,266 cooperative groups and 59 cooperative unions in all sectors of agriculture, industry, commerce, service, construction, transport and credit. Cooperatives have played a significant part in promoting economic restructuring, building new rural areas, ensuring social security, stabilising politics and developing socioeconomic.

However, lack of capital makes it difficult for many cooperatives to expand their production or business, even potentially pushing them into bankruptcy, while cooperatives that want to access advanced technology also face many challenges.

The reason why cooperatives find it difficult to access loans is because they do not have collateral and do not meet the strict requirements of banks, the report explained.

Experts suggested that cooperatives should promote the building of trademarks and products for cooperatives to improve their value as well as register their intellectual property for traceability. In addition to this, enterprises should associate with cooperatives in consuming products, bringing cooperatives’ products to domestic and foreign fairs.

HCM City boosts development of supporting industry

Ho Chi Minh City is enacting policies to aid businesses in the supporting industry by encouraging investment, networking between firms and banks, and creating special zones.

The municipal People’s Committee has approved 15 investment projects related to the mechanical, plastic and food industries, with total investment of 938 billion VND (41.3 million USD), 581 billion VND of which would be supported by the government in the form of paid interest on loans, according to the municipal Department of Industry and Trade.

A city multi-disciplinary team has also appraised nine projects, at a total of 943 billion VND (41.5 million USD). Two of them have been approved by the city.

The HCM City Export Processing and Industrial Zones Authority (HEPZA) is working with related authorities to form supporting-industry zones in Hiep Phuoc Industrial Zone and Le Minh Xuan 3 Industrial Zone.

Nguyen Phuong Dong, Deputy Director of the Department of Industry and Trade, said that to provide space for businesses to operate, HEPZA was also building factories at Tan Thuan Export Processing Zone and Linh Trung 1 Export Processing Zone.

Factories in the former are already being rented, while those in the latter are expected to start construction within this month.

In addition, the Department of Industry and Trade is working with the State Bank of Vietnam - HCM City Branch to connect banks with businesses and encourage credit unions and financial institutions to offer credit packages to businesses in the supporting industry.

Also, in accordance with Circular 29/2018/TT-BTC issued by the Ministry of Finance to manage funding for supporting industry development, nation-wide cities and provinces including HCM City can use state funds to provide financial aid to companies and organisations so they can organise exhibitions and conferences on attracting investment.

Accordingly, the companies and organisations in the city would be given up to 70 percent of the total costs for such activities, or up to 12 million VND per participant, as well as help in promotion and brand registration, up to 50 million VND per brand.

Also, according to the circular, the costs for sending business delegations to events in other countries will also be covered up to 70 million VND per participant, depending on the country.

In addition, the costs for appraisal, counselling and certification for businesses in the supporting industry would be fully covered by the State Budget.

All of these efforts are part of HCM City’s plan to develop its supporting industry. The city targets meeting 45 percent of national demand for manufactured inputs by 2020 and 65 percent by 2025.

The supporting industry has not grown as quickly as others, affecting the city’s economic development as a whole.

Vietnam exports three-coloured mangos to Australia

The Mekong Delta province of An Giang has exported 5.4 tonnes of three-coloured mangos to Australia for the first time.

The mango skin changes from green to reddish purple and then yellow when it ripens, so locals have named it the "mango of three colours."

With seeds being imported from Taiwan, this mango variety has become increasingly popular in the Mekong Delta region over the years due to its large size, pretty colours and pleasant taste.

The trees grow well, flowering easily and bearing fruit 18 months after being planted. Each mango weighs between 450g and 700g on average, with the largest ones reaching nearly two kilos.

Deputy Director of An Giang Department of Agriculture and Rural Development Nguyen Si Lam said the province had cooperated with the Chanh Thu Im-export Company in the Mekong Delta province of Ben Tre since early April to select mango growing gardens in Cho Moi district, which grow the fruit under VietGAP standards.

The department has also coordinated with a local plant quarantine centre to check quality and issue codes for growing gardens, which are qualified for exports to Australia and the US, said Lam.

The province hopes to begin exporting mangos to the US soon, he added.

Cho Moi district has become the hub of three-coloured mangos after the provincial People’s Committee approved financial support for project on building an area dedicated to the fruit several years ago. The fruit is being grown in nearly 5,000ha, mainly in the My Hiep, Binh Phuoc Xuan, and Tan My communes.

According to Nguyen Phuoc Thanh, an official of the An Giang Plant Protection and Cultivation Agency, about 730 growing households had been trained produce high quality mangoes. Local authorities had set up a chain from supply to consumption with participation of growers and businesses.

HCM City targets 9 percent growth in retail, consumer services

The southern economic hub Ho Chi Minh City has set the target of achieving 6.82 – 9.06 percent growth in the total retail and consumer services from 2026-2030. 

It is set under a master plan on trade sector development until 2025 with orientations to 2030 recently issued by the municipal People’s Committee. 

Accordingly, services sector will contribute to at least 58 percent of the gross regional development product until 2020. The total retail and consumer services will expand by 8.55 – 11.53 percent annually while retail via shopping malls and supermarkets will reach at least 40 percent of the total. 

From 2021-2025, the respective figures will 10.89 – 14.02 percent and at least 50 percent. 

In order to achieve the above targets, the city plans to build and upgrade parking lots and warehouses around markets, and ensure food hygiene and safety with clear origin to improve competitiveness. 

The city is expected to have at least five leading retailers in Vietnam between 2025 and 2030. It also encourages the opening of convenience outlet chains to meet demand in outlying areas, industrial and processing zones, and apartment buildings. 

According to the municipal Department of Industry and Trade, Ho Chi Minh City is home to 239 markets, including three wholesale markets, 14 first-grade and 54 second-grade markets, and the remaining are third-grade and makeshift markets. 

The city records 207 supermarkets and 43 shopping malls, 1,800 convenience stores and mini markets in the inner and outlying areas. 

Deputy Director of the municipal Department of Industry and Trade Nguyen Phuong Dong said the city’s retail market has thrived with the emergence of more shopping destinations for local residents.

Auto imports drop sharply last week

A total of 231 cars worth 10.2 million USD were imported to the Vietnamese market over the past week, reported the General Department of Customs. 

This marks sharp decreases in both volume and value as compared with the previous week, with 746 cars valued at 21.6 million USD, the department said. 

In the week, there were 97 cars with nine seats or less worth 2.5 million USD entering Vietnam, accounting for 42 percent of the total volume. Of the cars, 45 were from Germany and 40 were from Thailand. 

Of note, all of the 82 trucks valued at nearly 1.5 million USD imported to Vietnam last week were originated from Thailand. 

As many as 52 specialised vehicles worth 6.23 million USD were shipped to Vietnam, with 25 cars from Thailand, 12 from the Republic of Korea (RoK) and seven from China. The rest hail from Japan, France, Australia, Italy and Russia. 

Nearly 41.27 million USD worth of auto spare parts were also transported to the country, mainly from Thailand (12.7 million USD), China (6.78 million USD), Japan (6.45 million USD), the RoK (4.66 million USD) and Germany (4.19 million USD). 

Statistics show that 84 percent of auto spare parts imported to Vietnam last week were from the above-mentioned countries.  

The Vietnam Automobile Manufacturers Association (VAMA) reported on May 9 that up to 21,123 vehicles were sold in the domestic market in April. 

Of the total, the sales of tourist vehicles reached 13,549, up 5 percent, while the sales of commercial vehicles decreased 8 percent to 6,375 units and the sales of specialised vehicles also fell 8 percent to 1,217 units as compared with the previous month. 

Notably, the domestically-assembled cars segment saw a fall of 5 percent in sales to 17,910 vehicles. On the contrary, 3,213 vehicles were imported, up 37 percent month-on-month. 

During the January-April period, total automobile sales were 80,681 units, a decrease of 7 percent year-on-year. The sales of tourist vehicles increased 2 percent, while that of commercial and specialised cars fell 18 percent and 36 percent, respectively. 
The sales of domestically-assembled cars edged up 8 percent against a decrease of 47 percent in the sales of imported cars.

Export of squid, octopus to Russia increase dramatically
     
Export of squid and octopus to Russia has increased sharply since early this year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

In the first three months of this year, the export value of squid and octopus from Viet Nam to Russia reached US$1 million, up nearly 9-fold against the same period last year.

The VASEP said Russia is one of the nine largest export markets for Vietnamese squid and octopus, with impressive export growth recently.

Russia has imported a large volume of Vietnamese fresh, frozen and salted octopus, accounting for more than 90 per cent of Viet Nam’s total octopus export value.

This year, Viet Nam is boosting exports of these products to Russia to regain its market share from competititors from China, Peru, Belarus and Thailand.

In 2016, Viet Nam was the third largest supplier of squid and octopus to Russia. However, in 2017, the exports dropped due to stiff competition from the big rivals.

Government resolution eyes business environment improvement

The Vietnamese Government has issued a resolution on continuing with solutions and tasks to improve the business environment and increase national competitiveness in 2018 and beyond.

The resolution aims to improve indexes related to the business environment in order to jump 8-18 steps from the current 68th place the in World Bank’s Doing Business Rankings, with the focus on low-rated indexes.

Specifically, the country will try to move up at least 40 places in the index of Starting a Business, 10 places in Enforcing Contracts and 10 places in Resolving Insolvency.

Under the document, half of business and investment conditions will be eliminated or simplified, while the number of commodity types subject to specialised inspections will be reduced by at least 50 percent. 

State management will be shifted from pre-inspection to post-inspection. Additionally, products will be no longer be managed by more than one agency. The rate of import goods subject to specialized customs check will be reduced from the current 25-27 percent to under 10 percent. 

The resolution requires hastening the application of information technology in handling administrative procedures, including online public services.

The Government asked Ministers and Chairpersons of People’s Committees of provinces and centrally-run cities to build action plans on carrying out the resolution before May 31, and to direct the implementation of measures to improve the business climate and competitiveness.

Spinning sector greatly contributes to textile export

Vietnam’s fibre and yarn production and export is witnessing a strong growth, boosting the country’s textile and garment export turnover. 

In 2017, Vietnam earned 31 billion USD from exporting textiles and garment products, fibre, cotton and materials, of which exports of fibre contributed 3.59 billion USD, up 22.7 percent year-on-year. 

Nguyen Thi Tuyet Mai, vice general secretary and chief representative of the Vietnam Textile and Garment Association (VITAS) in HCM City said in addition to traditional textiles products, high value-added items such as fabrics, fibre and yarn and textiles and garments accessories have grown well in the first months of 2018.

Notably, Vietnam’s fibre and yarn export alone reached 906 million USD in the first quarter of 2018, up 16.5 percent year-on-year. 

Nguyen Binh An, General Secretary of the Vietnam Cotton and Spinning Association, said prior to 2000, the spinning sector’s production scale reached only 1 million spindles but its capacity was raised to 3.7 million spindles in 2007 and 7 million spindles at present. 

Two thirds of yarn produced in Vietnam is for export now, with the main importers being China, Turkey and European and American countries. 

Mai said the production scale of Vietnam’s spinning industry would become bigger in the future thanks to advantages brought by free trade agreements the country has joined. 

Vietnam is seen as an ideal destination for foreign-invested spinning projects. The Republic of Korea, China and Hong Kong (China) are leading investors of spinning factories in Vietnam. Japan also outsources yarn products to Vietnam.

In 2017, Vietnam exported 700,000 tonnes of fibre and yarn to China.

Experts said many foreign enterprises have invested in Vietnam’s garment and textile industry to exploit opportunities after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership agreement was signed.

MoF aims for e-finance system by 2025
     
Innovation in mobile devices and cloud technology on a large scale is key to technological application of the fourth industrial revolution, said Minister of Finance Dinh Tien Dung.

According to the resolution, the Ministry of Finance is applying technological achievements of the fourth industrial revolution to build a smart governance system, as well as providing smart financial services, and actively participating in the development of the digital economy.

The sector will plan to gradually switch applications to the cloud environment while setting up a comprehensive information security governance system, in compliance with Vietnamese regulations and international standards.

When operational, the financial cloud will help improve the electronic working environment. The use of data sharing, streamlining and automating internal processes, and providing the ability to search information on mobile devices, will combine towards paperless offices.

The application of new technology in the fourth industrial revolution period will also create a digital financial ecosystem based on the open data of the finance sector, creating conditions for people, enterprises, agencies and organisations to easily, and equally access information of the sector.

At present, the Government of Viet Nam is investing heavily into the building of e-government structures.

The digital government invests in new technologies of the fourth industrial revolution era such as Internet of Things, blockchain, mobility, cloud computing, big data, data analytics and artificial intelligence to streamline or eliminate processes. This will allow the Government to innovate management and public services, bringing greater efficiency and effectiveness in the digital era.

Becamex, Warburg Pincus in joint venture
     
Warburg Pincus, a leading global private equity firm focused on growth investing, and Becamex IDC Corp, the construction and development giant in Viet Nam, officially launched their joint venture BW Industrial Development Joint Stock Company on Tuesday.

With an area spreading over two million sq.m and an initial investment capital of over US$200 million, BW Industrial is the largest ‘for-rent’ industrial and logistics developer in Viet Nam.

In particular, BW Industrial will focus on supporting the sustainable development of Viet Nam. They are a strategic investor in the global supply chain. With the mission of providing value-added services to other industries through BW Industrial joint ventures, the company ensures to provide the best and most modern real estate solutions for investors in different fields such as mechanical manufacturing, electronics, automobile manufacturing, garments and footwear.

BW Industrial was seeded with eight projects across five cities in each of Viet Nam’s strategic industrial hubs in the North and South, including Binh Duong, Dong Nai, Hai Phong, Hai Duong and Bac Ninh. According to the plan, BW will build the foundations of industrial real estate and logistics services to meet the needs of multinational corporations as well as e-commerce companies in Viet Nam.

Jeffrey Perlman, managing director and head of the Southeast Asia division of Warburg Pincus, said, with a sizable population of nearly 100 million people and an increasingly diversified economy, manufacturing and domestic consumption had become the central areas of growth for Viet Nam. This was an ideal time to tap into these growth opportunities with the goal of taking Viet Nam’s industrial and logistics value chain to the next level, he added.

According to Nguyen Van Hung, chairman of Becamex IDC, Becamex contributes only 30 per cent of capital in this joint venture. It is also the policy that Binh Duong Province wants to call for investors to invest in, build for the socio-economic development of the locality. This is also a priority for profit sharing for investors.

Established in 1976, Becamex specialises in developing large-scale industrial townships with one of the largest industrial landbanks in key markets across Viet Nam. Becamex has formed a number of partnerships with foreign players such as Tokyu Corporation, a major Tokyo-based infrastructure developer, and Sembcorp, a Temasek-sponsored industrial group through the Viet Nam Singapore Industrial Park platform (VSIP), which is now widely recognised as one of the most successful industrial park developers in Viet Nam, with over $10 billion of investments to-date.

Warburg Pincus started investing in Southeast Asia in 2013 with Viet Nam as its maiden market. Since then, Warburg Pincus has committed over $1 billion in the region, including in Vincom Retail, Lodgis Hospitality, ARA Asset Management, Go-Jek, NWP, Trax, and others. Currently, the firm has more than $44 billion in private equity assets under management.

VN-India set to boost trade ties
     
The Assam Investment Roadshow, which took place in Ha Noi on Monday, gave businesses from India in general and from the Assam region in particular investment opportunities with Vietnamese partners, especially in the agricultural field.

A delegation of representatives from government agencies and businesses, headed by Sarbananda Sonowal, Chief Minister of Assam, attended the event along with other Vietnamese firms and representatives from the Vietnam Chamber of Commerce and Industry.

At the seminar, Sonowal invited Vietnamese businesses to invest in fields with preferential treatment in India and the Assam market, such as high-tech agriculture, industry, tourism, energy, and trade.

“I am glad to showcase the potential and possibilities of the State at the Assam Investment Roadshow in Hanoi, and lead a delegation of legislators, officials and farmers to Vietnam, a country from which Assam can learn from immeasurably, especially in the agriculture sector,” said Sonowal.

He also asked for Viet Nam’s help to accomplish the Government’s aim of doubling crop income by 2020, and requested Viet Nam open a consulate office in the Assam capital of Dispur.

Assam is a major state in northeastern India, which in recent years has been playing a central role in boosting economic cooperation between India and ASEAN countries.

Monday’s Roadshow was jointly organised by the VCCI in collaboration with Embassy of India and the Government of Assam, India.

Before attending the Roadshow, Sonowal had met with Cao Duc Phat, a member of the Party Central Committee and Vice Chairman of Central Economic Commission, and Ha Cong Tuan, Deputy Minister of Agriculture and Rural Development, as well as Hoang Binh Quan, Chairman of the External Relations Commission.

Bilateral collaborations on technology and the exchange of knowledge for the benefit of farmers from both countries were discussed.

According to figures from India’s Ministry of Commerce and Industry and the General Department of Vietnam Customs, exports from Viet Nam to India in the first three months of 2018 had reached US$1.57 billion, up 111 per cent from the same period last year. March 2018’s exports from Viet Nam alone reached $637.63 million, up 120 per cent from March 2017.

Imports from India to Viet Nam in the first quarter totalled $1.04 billion, a slight increase of 2.4 per cent from the previous year. The trade surplus for Viet Nam in March was around $267.75 million, and the first quarter reached $532.60 million, a record level so far.

Viet Nam’s products with strong export growth include machinery, equipment, tools and spare parts, as well as steel products, coal, rattan, bamboo, rush and carpet products , and mobile phones and phone accessories.

In the opposite direction, imported Indian commodities with high growth rates include ores and other minerals, plastic materials, car parts and paper.

King Broker eyes nation-wide expansion
     
King Broker plans to expand operations to all 63 provinces and cities, according to Trinh Nguyen Tuan Anh, the founder of the real estate company.

King Broker has been in operation for five years, during which time it has set up systems to support property brokers including organising online training, setting up social media channels to connect brokers and solutions based on Big Data.

It now has nine branches — in Lao Cai, Ha Noi, Thanh Hoa, Ha Tinh, Quang Binh, Binh Thuan, Dong Nai, Vung Tau, and HCM City – Anh said.

Late last week, to connect brokers, King Broker and Investment Review organised a seminar for 200 brokers in Vung Tau and Dong Nai provinces.

Participants spoke about the market in the two provinces and discussed opportunities and challenges thrown up by industry 4.0 were discussed so that brokers could learn how to succeed in the new technological era.