Medicine, healthcare services see strongest price hike in August

Medicine and healthcare services prices this August post the sharpest monthly hike, 6.18 percent, compared to five other goods and services categories that share the same upward trend, said the General Statistics Office (GSO) on August 24. 

The five other categories with rising price are education (up 0.47 percent); garment, hats and footwear (0.14 percent); beverage and cigarette (0.05 percent); household appliances and goods (0.05 percent); and other goods and services (0.11 percent). 

Meanwhile, consumers spent lesser money on traffic (down 1.97 percent); food and catering services (0.14 percent); culture, entertainment and tourism (0.12 percent); postal services and communications (0.03 percent); and housing and construction materials (0.02 percent). 

As a result, consumer price index (CPI) in August rose by 0.1 percent from July, 2.57 percent from the same period last year and 2.58 percent from last December. The eight-month CPI climbed 1.91 percent year on year. 

Do Thi Ngoc, Deputy Director of the GSO’s Price Statistics Department, said costlier healthcare services prices are the biggest contributor, 0.28 percent, to the CPI growth. Their 8.12-percent increase in 16 provinces was scheduled in a joint circular between the health and finance ministries. 

Nine provinces and cities also augmented tuition fees as stipulated in a Government decree last year. Higher demand for educational tools like textbooks, notebooks and pens to prepare for the new school year also boosted education prices, she added. 

While food supply abundance made food prices fall slightly, lower construction demand and global steel prices dragged prices of construction materials down 0.47 percent from the previous month. 

The traffic category experienced the biggest price decrease, 1.97 percent, mostly due to two petrol price cuts which in turn led to cheaper coach and ship tickets. Additionally, August’s coincidence with the seventh lunar month, traditionally called the Ghost Month, resulted in less demand for automobile and motorbike purchases, making vehicle prices drop 0.12 percent. 

In August, gold prices rose by 1.72 percent from last month while the VND/USD exchange rate was relatively stable, with one US dollar exchanged for 22,330 VND. 

The GSO said the core inflation (the CPI excluding food items; energy products and commodities under the State management including medical and educational services ) this month inched up 0.09 percent from July and 1.83 percent from a year before. The eight-month core inflation climbed 1.81 percent from the same period of 2015. 

The almost similar eight-month inflation (1.91 percent) and core inflation (1.81 percent) compared to the same period last year proved that the current monetary policy is effective, helping to stabilise the macro-economy, the office noted. 

The GSO forecasts September will register a faster CPI growth rate than that of August because of higher educational services and petrol prices.

HCM City CPI drops 0.2 percent in August

Ho Chi Minh City’s consumer price index (CPI) in August dropped 0.2 percent over the previous month, but rose 1.78 percent over the same time last year, reported the municipal Statistics Office on August 24.

In August, decreases were seen in prices of three goods groups, leading by transportation with a 2.4 percent month on month reduction due to the falling fuel price.

Post and telecommunication prices fell a slight 0.07 percent, while food and catering service prices declined 0.19 percent.

Meanwhile, an upturn was seen in the remaining groups, with prices of goods and other services rising 0.22 percent; culture and entertainments 0.2 percent; and housing, water, power, fuel and construction materials, 0.18 percent.

Drop was also recorded in prices of education with 0.18 percent; garments, hats and footwear 0.01 percent; home equipment and appliances 0.09 percent; and beverage and cigarette 0.01 percent.

The prices of pharmaceuticals and health care services stayed stable during August.

The same month, the USD price was down 0.04 percent, while gold price rose 2.23 percent month on month.

Vietnam ships Hung Yen longan to US

Two tonnes of Hung Yen longan have just been transported to Ho Chi Minh City to undergo irradiation before being shipped to the US.

The VietGap-met longan was grown in nearly 20 hectares in Ham Tu commune in Khoai Chau district and Hong Nam commune in Hung Yen city, of northern Hung Yen province.

Hong Nam commune grows longan trees on over 170 hectares, producing an annual average of 2,000 tonnes of fruit.

Hung Yen has 3,000 hectares of longan trees, yielding 35,000-40,000 tonnes per year, mostly in Khoai Chau, Hung Yen city, and Kim Dong district.

As many as 175 households, owning 20 hectares of longan trees have been granted the codes to export their products to the US.

They are required to strictly follow Vietnamese Good Agriculture Practice (VietGap) standards like using only permitted bio-pesticides. 

The US Department of Agriculture approved the import of fresh lychee and longan from Vietnam in 2013. 

The fruits will be subject to a system that includes treatment and inspection requirements and restrictions on distribution. 

As a pre-condition for entry, the fruits must be grown in orchards registered with and monitored by the National Plant Protection Organisation of Vietnam to ensure they are disease-free.

Vietnam hopes to export 600 tonnes of lychee and 1,200 tonnes of longan to the US every year.

Bac Giang draws more than 100 investment projects

The northern province of Bac Giang has attracted 121 investment projects so far this year, according to Director of the provincial Department of Planning and Investment Trinh Huu Thang.

He said that the locality lured 87 domestic projects worth 11.42 trillion VND (513.9 million USD) (up 3.9 times from the same period last year), and 33 foreign ones worth 353 million USD (up 179 million USD over last year).

To improve the local business environment, the provincial People’s Committee issued a plan in June assigning tasks for departments.

For example, the Department of External Relations was assigned to hold meetings with businesses from the Republic of Korea that invest in the province.

The Department of Planning and Investment was directed to propose projects calling for investment in the form of public-private partnership, especially in transport.

Also, the Department of Home Affairs was requested to prepare for the effective operation of the provincial public administrative center, which will be launched on September 1.

The steering committee for supporting business investment and development was urged to monitor the implementation of key projects on the Yen Tu spiritual tourism complex, the route linking National Highways 31 and 17, the international logistics complex and the urban area to the south of Bac Giang City.

Provinces sign agreement with VCCI

Deputy Prime Minister Vuong Dinh Hue has called on all provinces and cities to set up a centre to support businesses, especially small- and medium-sized enterprises (SMEs).

His call came at a ceremony in HCM City yesterday where the Viet Nam Chamber of Commerce and Industry (VCCI) signed an agreement with 33 central and southern provinces and cities for creating a business-friendly environment.

The centres will provide all kinds of support — with legal procedures to incorporate or close down companies; incorporation procedures; import-export activities; approaching the market; setting up a business project; technology; tax and land issues; and accounting.

"SMEs and micro enterprises cannot have an accounting department because they cannot afford it; the centre will help them do it," Hue said, citing an example.

This would encourage SMEs and micro enterprises to develop, he said.

The Government would subsidise 40-60 per cent of the centre's operation costs with the rest covered by fees paid by companies, he said.

Hue, who is also head of the Steering Committee for Business Renovation and Development, called on the VCCI to create a Business Support and Development Index to rate provinces and cities based on the number of enterprises, new ones and ones that recommence business after suspending operations.

The benefit that companies brought a province – a combination of the profits they make and their workers' incomes – should also be an important basis, he said.

"The index will not be used to compare all provinces and cities; it will be used for a comparison with themselves or with others at the same level."

He called on the VCCI to create the index this year so that it can be applied from next year onwards.

Developing local credit guarantee funds was the Government's other requirement from the VCCI and provinces.

"Many SMEs and micro enterprises cannot get bank loans since they lack assets to mortgage, so they need help from the fund," Hue said.

Ha Noi and HCM City had efficient funds, he said, hoping other provinces and cities would follow.

The deal between the VCCI and the provinces was in response to the Government's Resolution No 35 in May to support and develop businesses by 2020.

With the signing, the 33 provinces and cities have pledged to carry out the Government's resolutions in improving the investment environment.

They are committed to implementing programmes and establishing models to support local companies and help them overcome difficulties.

Resolution 35 lists five tasks: reforming administrative procedures to improve the business climate; creating advantages for start-ups; ensuring a level playing field for all companies; helping reduce businesses' costs; and protecting businesses' rights and benefits.

VCCI chairman Vu Tien Loc said companies were happy with the determination of the Government and provinces to create a good business climate.

According to the VCCI, it has signed agreements with 40 provinces and cities, including Ha Noi, HCM City, Da Nang, Dong Nai, Quang Binh, and Quang Tri, to support local businesses. 

August CPI posts 7-month lowest increase

The Viet Nam's General Statistics Office reported yesterday that the national consumer price index (CPI), the main gauge of inflation, has recorded a seven-month lowest increase since February this year and the lowest level on a monthly basis over the past 10 years.

According to the office's report, August's CPI rose slightly by 0.1 per cent from July, compared with a 0.13 per cent increase in July, 0.46 per cent in June and 0.54 per cent in May.

The third straight monthly decline in the CPI growth rate was driven by a fall in prices of nearly half of the items in the goods and services basket used to calculate CPI, deputy head of the office's Price Statistics Department Do Thi Ngoc said yesterday.   

Five among 11 groups of goods and services of the basket saw a price drop including restaurant and catering services (0.14 per cent); transport service (1.97 per cent); culture, entertainment and tourism (0.12 per cent); post and telecommunication services (0.03 per cent); and housing and building materials (0.02 per cent).

Ngoc attributed the slide in the price of restaurant and catering services to the abundant supply of food and foodstuffs that saw prices drop 0.35 per cent and 0.19 per cent, respectively.

The price of transport services was dragged down by the cut in petrol prices which happened in late July and early August, followed by decreases in bus, coach and ship fares.

Additionally, the automobile and motorbike market seemed to stagnate in August as the month coincides with the seventh lunar month, traditionally called the Ghost Month, that reduced prices of vehicles by 0.12 per cent, Ngoc added.

Speaking about the reason that led to CPI's marginal increase, Ngoc said that the major contribution was from the costlier health care services following a joint decision of ministries of health and finance.

Accordingly, medicine and healthcare services prices this August post the sharpest monthly hike, 6.18 per cent, compared to five other goods and services categories that share the same upward trend.

In addition, nine provinces and cities also upped tuition fees as stipulated in a Government decree last year. Higher demand for educational tools like textbooks, notebooks and pens to prepare for the new school year also boosted education prices, she added.

In August, gold prices rose by 1.72 per cent from last month while the VND/USD exchange rate was relatively stable, with one US dollar exchanged for VND22,330.

Compared with the same period last year, the August CPI increased by 2.57 per cent. The eight-month CPI climbed 1.91 per cent year on year.

The GSO said core inflation (CPI excluding food items; energy products and commodities under State management including medical and educational services) this month inched up 0.09 per cent from July and 1.83 per cent from a year before. The eight-month core inflation climbed 1.81 per cent from the same period of 2015.

The almost similar eight-month headline inflation (1.91 per cent) and core inflation (1.81 per cent) compared to the same period last year proved that the current monetary policy is effective, helping to stabilise the macro-economy, the office noted.

The GSO forecasts September will register a faster CPI growth rate than that of August because of higher educational services and petrol prices.

August CPI in the country's two biggest cities – Ha Noi and HCM City – marginally fell by 0.17 per cent and 0.2 per cent, respectively, from the previous month, the localities' statistics office reported yesterday.

VinaCapital, Shinhan to co-operate on investment products

VinaCapital Group is partnering with Korea's Shinhan BNP Paribas Asset Management (Shinhan) to provide investment products to Shinhan's clients in Korea, enabling them to participate in Viet Nam's growing economy.

According to VinaCapital, the two companies signed a memorandum of understanding on August 22 to outline how they would co-operate to develop funds invested in Vietnamese assets for Korean investors as well as to introduce Shinhan's products in the Vietnamese market in the future.

VinaCapital's first engagement with Shinhan is a delegated investment management mandate for one of Shinhan's Korea-domiciled funds. In addition, the two companies will work together to launch the VIP Equity Fund, which will invest in publicly traded Vietnamese companies as well as those in Indonesia and the Philippines. The fund was expected to be launched in September, VinaCapital said.

The two parties will also work together to develop a Vietnamese multi-asset fund that will invest in equities, fixed income, real estate and other assets, leveraging the long-standing success of VinaCapital's Vietnam Opportunity Fund (VOF).

VinaCapital CEO Don Lam said, "Korean companies have been among the largest investors in Viet Nam, spending billions of dollars to build and expand their operations, and have been an important driver of the country's recent economic growth."

Founded in 2003, HCM City-based VinaCapital is a leading investment and asset management firm with a diversified portfolio of US$1.4 billion in assets under its management. The firm has three closed-end funds that trade on the London Stock Exchange: VinaCapital Vietnam Opportunity Fund Limited, which is traded on the main market; and VinaLand Limited; and Vietnam Infrastructure Limited, which trade on the AIM. VinaCapital manages the Forum One-VCG Partners Vietnam Fund, Viet Nam's largest open-end UCITS-compliant fund.

VinaCapital's expertise spans a full range of asset classes, such as capital markets, private equity, venture capital and real estate, besides fixed income. 

Foreign firms explore opportunities in Can Tho in droves

An increasingly large number of foreign companies have visited Can Tho City this year to sound out business and investment prospects, with many of them coming from Japan, the Republic of Korea, Thailand and India.

foreign firms explore opportunities in can tho in droves hinh 0 Nguyen Khanh Tung, director of Can Tho’s Center for Investment, Trade and Expo Promotion, said at least 27 groups representing 100 businesses from the four countries have come to the Mekong Delta city in the year to date.

Korean firms are keen on sectors like hi-tech farming, food processing and beverage. Some business groups from the Northeast Asian country have discussed with Can Tho’s leaders about their plans to develop Can Tho into a smart city, Tung said at a press conference held on August 23 to introduce the fourth investment forum in the Mekong Delta region in November.

Japanese companies have shown keen interest in agriculture and tourism while Thai firms have sought to invest in water supply and industrial wastewater treatment projects. Some Indian firms plan to open branches and stores to sell ploughing machines and crop harvesters before building manufacturing facilities in the city.

Nguyen Phuong Lam, deputy director of the Vietnam Chamber of Industry and Commerce (VCCI) in Can Tho, said foreign direct investment in the Mekong Delta has increased significantly in recent years.

The number of FDI projects in the delta in 2014 was 184 but surged to 371 last year with total capital of US$3.6 billion. Foreign firms registered a total of US$1.4 billion for 79 projects in the delta in January-June.

The fourth investment forum in the Mekong Delta, or MekongInvest, is set to take place in Can Tho on November 11 and 12. This is an opportunity for local agro-aqua-forestry enterprises to learn about modern technology and machines used to make value-added products.

Lam said most enterprises in the delta semi-process products for export, so the value of these products is low.

Foreign companies would be aided to introduce their processing technology and machines and then manufacture these machines in Vietnam to capitalize on high demand in the Mekong Delta, Lam said.

Organizers of MekongInvest will arrange field trips to farms and processing facilities in the delta for participating foreign businesses at the event upon request.

MekongInvest to lure greater investment

An annual conference on investment in the Mekong Delta, MekongInvest is set to take place in November to promote the region’s business climate and lure greater investment.

The two-day event will discuss the implementation of policies boosting mechanization in agriculture, making it more competitive in the international integration. 

It will also focus on the development of smart technology. Local authorities expect to attract greater investment in technical infrastructure for major projects in transportation, thermal power, and sea ports.

MekongInvest 2016 will enable Vietnamese and foreign businesses to expand their partnerships. 

This will be the first time an exhibition will be set up at the conference venue where foreign businesses will display machinery, devices, and new applications of technology to agriculture and seafood processing.  

Vietjet offers 15% discounts on ATM card payments

Vietjet and the National Payment Corporation of Vietnam (Napas) have teamed up for a promotion offering up to 15% discount on air ticket prices for all passengers making bookings at www.vietjetair.com with ATM cards.

The promotion applies to all ATM cards issued by any of 29 Vietnamese banks from 12:00 p.m. (noon) to 2:00 p.m. on August 15 to August 22, 2016.  

The promotion is applied for all Vietjet’s ticket classes (Promo, Eco and SkyBoss) and all flights, marking the collaboration of the fast-going new-age carrier and one of the leading payment service company for the benefit of Vietjet’s passengers.

To ease bookings, cardholders should choose to pay via Napas during the booking process as well as making sure that their cards have been registered for online payment with their bank in advance.

The list of 29 banks include Vietcombank, Sacombank, ACB, Agribank, BIDV, Vietinbank, VPBank, Maritime Bank, Techcombank, MBBank, VIB, TPBank, Eximbank, HDBank, VietABank, SeABank, OCB, DongA Bank, ABBank, BAOVIET Bank, LienVietPostBank, SHB, Kienlongbank, NCB, GPBank, OceanBank, BacABank, SCB and VRB.

PM issues plan to implement VN–Laos border trade agreement

Prime Minister Nguyen Xuan Phuc has issued a plan for implementing a border trade agreement between Viet Nam and Laos.

Under the plan, relevant agencies will publicise the agreement's content and help people to obey the terms and instruction documents.

They will also support businesses in the border area between the two countries in trade promotion, cross-border investment and tourism and in developing border market operations.

The trade promotion activities will include market studies, exhibitions and trade fairs, advertising and consultancy, besides brokerage, agents and services for better access and penetration of markets through the border gates of the two countries.

The agencies will also conduct programmes to encourage businessmen and residents in border areas to invest in production and farming in the border provinces, based on the agreement's preferential policies and mechanisms on investment operations, and to develop tourism in the provinces of the two sides. 

Malaysian apartment property invites Vietnamese buyers

The Star Residences Two, a five-star apartment and commercial integrated project being under development in Malaysia's Kuala Lu pur city centre has attracted keen interest from people in HCM City when it launched in the city on Sunday by the sales conssultant Anpha Holdings.

Eleven potential customers registered their purchases on that day.

Michael Dang, chairman of Anpha Holdings highlighted the location right in the financial and commercial heart of the capital city from which it takes less than a two-hour flight to reach HCM City.

This 57-storey tower with 482 units of 65 to 276sq.m, next to the 200m-long star walk of fame the first one in Southeast Asia, are price at US$5,700 per square meter, around the same of the high-end ones in HCM City and the first group of 30 fine-dining restaurants in the city.

Developped by Malaysia's two leading firms - UMLand and ProNex, the project is expected to complete in late 2017. 

Investors to buy 90% shares in VEAM's IPO

Investors have registered to buy 149.5 million shares of the Vietnam Engine and Agricultural Machinery Corporation (VEAM).

This is equal to 89.5 per cent of the shares offered in its initial public offering next Monday, the Hanoi Stock Exchange said.

It is expected to be the largest IPO in Viet Nam this year, with the minimum value surpassing VND2.3 trillion (US$103 million).

The machinery producer will auction more than 167 million shares, or 12.6 per cent of its charter capital. The starting price is set at VND14,290 per share.

Foreign investors are allowed to buy all the shares on offer.

To date, 240 investors have registered to participate in the IPO, with 15 institutions having booked 132.1 million shares and 225 individuals having registered nearly 17.4 million shares.

After the sale, the company's charter capital will increase to nearly VND13.3 trillion. Accordingly, the state will continue to hold the largest stake of 51 per cent, while 36 per cent will go to strategic investors, and the company's staff will be offered 0.43 per cent.

The rest will be sold at the company's IPO on the Hanoi Stock Exchange next Monday.

VEAM is among the top five performers under the industry and trade ministry, coming behind PetroVietnam, Vietnam Electricity (EVN), Saigon Beer-Alcohol-Beverage Joint Stock Company (Sabeco) and Petrolimex.

It currently holds large stakes in well-known car manufacturing firms in Viet Nam, including a 30-per-cent stake in Honda Vietnam, a 20-per-cent stake in Toyota Vietnam and a 25-per-cent stake in Ford Vietnam.

In 2015, the company reported a net profit of nearly VND3.4 trillion.

Hanoi's hotel occupancy rate hits five-year high

Vietnam is forecast to see more growth in the five star hotel and resort segment.

Hanoi's hotel occupancy rate reached 75% in June, the highest figure in five years thanks to growing international tourist arrivals.

The capital's hospitality and tourism market welcomed 21% more tourists in the first six months of 2016, according to a hospitality market review issued by the Vietnam office of global commercial real estate firm CBRE.

The reports shows that hotel occupancy rates as of June 30 rose by 65% in Ho Chi Minh City and 75% in Hanoi compared to last year. The rate in Hanoi was the highest in the last five years, rubbing shoulders with Bangkok for the top position in Southeast Asia.

CBRE said that Vietnam’s hospitality and tourism market is likely to grow thanks to more international recognition and policies to improve safety and services.

Visa exemptions have also contributed to the growing number of of international tourists visiting Vietnam. Since 2015, Vietnam has waived visas of up to 15 days for tourists from the United Kingdom, France, Germany, Spain and Italy from July.

Ho Chi Minh City received 2.1 million visitors in the first six months, rising 13.5% compared to the same period last year, while Hanoi welcomed a rise of 39.3%. The coastal resort town of Nha Trang also witnessed an on-year increase of 39% in the first half.

Some of the world's top hotel chains such as AccorHotels Group, InterContinental Hotels Group PLC and Starwood Hotels and Resorts Worldwide have already established themselves in Vietnam, while others such as Wyndham Hotels and Resorts, Holiday Inn and the Pan Pacific Hotels and Resorts also plan to penetrate the local market.

Strong investment in coastal areas like Da Nang, Nha Trang and Phu Quoc by local firms such as Vingroup, Sun Group and MIK has also attracted visitors.

CBRE Vietnam forecasts that Vietnam will see more growth in the five star hotel and resort segment thanks to increasingly high demand for business trips and conferences.

Nho Que 2 hydro-power plant begins commercial operation

Nho Que 2 hydropower plant, located in the northern mountainous province of Ha Giang’s Meo Vac district, has completed 72-hour trial run, officially generating electricity commercially and connected into the national grid.

Located in Vietnam’s remote and underdeveloped region, the construction of the 48 megawatt Nho Que 2 hydropower plant started in June 2014, with the total investment capital of approximately VND1.5 trillion ($68.2 million).

To satisfy the operational requirements of the power plant, Nho Que Electrical Development and Investment JSC under Bitexco Power Corporation, and related entities organised the installation, adjustment and acceptance of work items and equipment in accordance with current regulations. After the trial period of 72 hours, the plant completed the test, satisfying the design requirements and technical standards and was ready to integrate into the national grid.

According to Bitexco Power Corporation, once fully operational, Nho Que 2 hydropower plant will create jobs for the local people and contribute to the regional energy security and national defense.

With Nho Que 2 hydropower plant and Nho Que 1, the construction of which will be completed in a matter of time, Bitexco Power Corporation has a total of 15 power plants nationwide.

Lastest Tan Tao project on path to demise

Another project invested by Tan Tao Group in the central province of Quang Ngai is put on the warning list due to failing to meet the construction deadline.

The Quang Ngai People’s Committee has sent a document to Tan Tao Group subsidiary Vina Film Studio and Tourism Zone Investment JSC to urge the implementation of its long-delayed Vina Universal Paradise Trade and Service Complex (Vina Universal Paradise).

The document stated that accelerating the construction progress is an important duty ensuring the requirements of the province’s urban development plan as well as creating stable lives for residents.

Licensed in 2008, the project has the total investment capital of VND1.2 trillion ($54.3 million) and it was planned to be build on an area of 56.5 hectares in Son Tinh district and slated in the 2008-2012 period.

According to the original plan, the project was going to be completed within four years and would include a residential area of 237 houses, 183 villas with gardens, and 56 bungalows, or one-storey wooden houses, a public area, as well as five trade-service blocks.

Construction has been implemented slowly. As of now, the investor has yet to complete the compensation payments and build the resettlement area for residents. According to the local residents, the long delay in construction has turned the project area into a waste land because it has been lying abandoned for years, while residents do not have land for cultivation or construction.

Previously, the investor proposed the provincial leaders to extend the deadline to 2018 to complete the final stage, including the trade-service and accommodation areas. However, the investor failed to meet the new deadline.   

The Quang Ngai People’s Committee thus suggested that the investor reduce the scale of the project, while simultaneously seeking to co-operate with the provincial authorities to deal with difficulties.

Vina Universal Paradise is one of three projects Tan Tao’s subsidiary registered to invest in Quang Ngai. The two remaining ones are Vina Universal Studio-Resort (Vina Universal) and Pho Phong industrial park.

In 2008, Tan Tao’s subsidiary was licensed to develop Vina Universal with the total investment capital of $50 million.  The project was planned on a combined land and sea surface area of over 2,500 hectares. Because the project start was continuously delayed, in 2011 the province revoked its investment certificate. At the time, Vina Film Studio and Tourism Zone Investment JSC requested to give up the project because of financial difficulties.

Regarding Pho Phong IP, the 157ha project was licensed in 2009 with the total investment capital of VND285 billion ($12.8 million). The investor had pledged to finish construction by early 2012. However, no stages had been implemented yet, and as the result, the investor had its investment certificate revoked in May 2014.

Vingroup to build $90mn hospital in Can Tho

Vingroup is planning to build a hospital in the Mekong Delta city of Can Tho with total investment capital of $90 million.

A representative from its Public Relations Department confirmed with VET on August 22 that the Can Tho City People’s Committee has approved Vingroup’s investment in the Vinmec Can Tho International General Hospital, which will have 500 beds.

The eight-storey Vinmec Can Tho will cover an area of 18,000 sq m in Ninh Kieu district. Ground is expected to be broken at the end of September and construction completed in March 2018.

Vingroup is the largest investor in Can Tho city, owning the Vincom Xuan Khanh complex in Ninh Kieu district, which includes a high-end shopping center, a 30-storey five-star hotel and the Vincom Shophouse area with 52 shophouses.

It has also developed two trade centers and a Vinmart+ convenience store in the city and been preparing to begin construction of an amusement park, resort, and 18-hole golf course in Cai Rang district.

Vingroup also confirmed with VET a few days ago that it plans to build a trade complex in northern Ha Giang province, construction of which will also begin in late September and be completed in late 2017.

The complex will include a five-storey trade center, a Vinmart supermarket, a Vinpro electronics store, an amusement area, and restaurants and a cinema.

Vingroup is a leading real estate group in Vietnam with a network of consultant partners and leading global designers and quality real estate projects and services. It has recently secured an additional international syndicated loan of $300 million to finance its real estate developments and reorganize its debts, following its first international syndicated loan of $150 million in 2013.

Its projects include Vinhomes Central Park, Golden River Vinhomes, Vinhomes Gardenia, Vinhomes Metropolis Lieu Giai and a range of Vincom Shophouse projects in major cities.

It has also signed cooperation contracts with nearly 250 enterprises from eight cities and provinces nationwide in the fields of food, cosmetics, stationery, toys, household appliances, fashion and textiles.

Vingroup has also opened ten shopping malls around the country and plans to open nearly 50 trade centers this year, selling international-standard products.

Can Tho is a city directly under central authorities, located in the heart of the Mekong Delta. It is now a Level 1 city and one of four cities and provinces in the Mekong Delta Economic Zone.

It has an area of nearly 1,400 sq km with and a population of around 1.2 million people. Its strengths include agriculture and aquaculture and it has developed urban and traffic infrastructure, hi-tech agriculture, seafood processing, tourism and support industries.

Hai Phong tops FDI attraction in eight months

Hai Phong was the largest attraction to foreign direct investment (FDI) in the first eight months of the year, drawing approximately US$2.02 billion, accounting for 14% of the country’s total figure, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

During the period, the port city reported 30 newly-licensed projects and 21 existing projects registering to adjust capital, notably including the LG Display Hai Phong project, licensed on April 15, with a registered capital of US$1.5 billion.

Hanoi ranked second regarding FDI attraction in the first eight months with US$1.782 billion in both new and additional pledges, representing 12.4% of the total, followed by Dong Nai and Binh Duong provinces with US$1.59 billion and US$1.38 billion respectively.

As of August 20, Vietnam had attracted approximately US$14.336 billion in new and additional FDI pledges, up 7.7% compared to the same period last year. Nearly 1,620 projects were licensed with total registered capital of US$9.795 billion, up 24.3% year on year, while 770 projects registered to increase capital by roughly US$4.57 billion, equivalent to 83.7% of the 2015 figure.

The processing and manufacturing industry continued to be the largest attraction for foreign investors, drawing US$10.53 billion in both new and additional FDI pledges, accounting for 73.3% of the period’s total. Real estate came in second with US$836.2 million, while the science and technology sector ranked third with US$622.3 million.

The Republic of Korea led the 65 countries and territories investing in Vietnam from January to August with US$4.8 billion (33.4% of the total FDI figure), followed by Singapore at US$1.68 billion (11.6%) and Japan at US$1.46 billion (10.1%).

Vietnam stock market cap equivalent to 38% of GDP

Vietnam’s stock market capitalisation reached its highest level in six years at VND1,590 trillion (US$71.55 billion) as of August 23, equivalent to 38% of GDP, according to the State Securities Commission (SCC).

Compared with the end of 2015, the value has increased by 17%, the SCC added.

The SCC said Vietnam’s stock market quickly recovered and maintained reasonable growth in the first eight months of the year, despite many negative external impacts, with the VN-Index peaking for the first time in the past eight years.

As of August 23, the VN-Index rose 13.8% compared with the end of 2015 while the HNX-Index was also up 4%.

The average value of transactions in a trading session also increased by 25% against the previous year to nearly VND6.2 trillion (US$279 million).

Figures released by the SCC show that foreign capital into Vietnam’s stock market reached US$722 million in the first half of 2015, up 3.5 times over the same period last year.

Foreign portfolio investments reached an all-time high of US$16 billion.

The size of the unlisted public company market has also increased ten times compared with 2009.

Firms seek solutions to massive fish stocks

Many enterprises in Quang Binh Province are struggling due to massive frozen fish inventories after buying fish from local fishermen affected by the recent fish deaths.

Local companies halted the purchase of fish from April following the Formosa toxic waste incident. To stabilise the situation and support the fishermen, the government and authorities in Quang Binh called on local firms to buy fish and said that they would receive a 20% subsidy and free interest rates for six months from banks.  

The preferential policy encouraged many companies in Quang Binh Province to buy fish. However, since the mass fish deaths, the consumption of seafood in region and wider country has fallen, leading to the slow sales of fish for the companies. As a result, the majority of the fish have remained in stock.

Truong Thi Muoi, Deputy Director of Duc Hieu Ltd. Co., said that before the mass fish deaths, her company bought 260 tonnes of fish of different kinds at VND6.6 billion (USD314,280) to supply restaurants during the Reunification Day and May Day holiday. However, due to the mass fish deaths, most of the fish remained unsold and the company decided to halt fish purchases.

However, following the call of local authorities, she received a VND18-billion loan from the Bank for Agricultural and Rural Development of Vietnam to buy an additional 400 tonnes of fish from fishermen. So, until now, the company's total frozen fish stocks stood at around 600 tonnes worth more than 24 billion dong.

She has now hired cold storage in HCM City, Nghe An and Haiphong to preserve 300 tonnes of fish and every month, she has to pay VND300 million for the fees along with another VND200 million for banking interest rates and salaries for workers.

Many other companies in Quang Binh are in the same situation. Currently, roughly 2,000 tonnes of frozen fish worth VND100 billion have been still keep in stores in the province, leading to serious losses.

According to companies in Quang Binh, they have been offered with a 20% price discount when buying fish from fishermen, while not yet been given with the six-month free interest rates for loans from banks as promised by local authorities.

Nguyen Thi Le, Deputy Director of An Binh Seafood Im-export Company in Bo Trach District, said that frozen fish has been stored for months, so whether they will get compensations if their fish is destroyed?

According to Le, the fish in stock should be destroyed so that companies can have empty stores to buy more fish from farmers.

Answering why companies have not yet been offered free interest rates from banks, Dinh Quang Hieu, director of the State Bank of Vietnam's branch in Quang Binh Province, said that procedures for getting loans from banks are related to many agencies, which has led to the tardiness. He has sent documents to urge local banks to speed up this work.

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