PM welcomes theme of 24th SMEs ministerial meeting

Prime Minister Nguyen Xuan Phuc highlighted the theme of the 24th APEC Small and Medium Enterprises Ministerial Meeting (SMEMM), saying it demonstrates the aspiration of Vietnam to cooperate with other APEC member economies to foster SMEs’ innovation and global access in the digital era.

Over the past 30 years of reform, Vietnam, from a poor country, became a developing and middle-income country in 2010, he said the opening session of the SMEMM held in Ho Chi Minh City yesterday. 

The country’s development path is a vivid demonstration for the role and the significance of SMEs, he added.

He described the SME community as a main momentum for employment generation and contribution to the maintenance of socio-economic growth and stability.

In the context of the fourth industrial revolution, the National Assembly of Vietnam has promulgated the Law on Support for Small-and Medium-sized Enterprises while the Government has issued a number of important policies to build a healthy and inclusive business environment, he said.

Vietnam hopes to receive cooperation from other APEC member economies to enhance the capacity of the tax system to encourage business production, fair competition, and prevent transfer pricing and tax evasion of some foreign investors, he added.

The PM recommended building a support fund for SMEs and encouraging them to strengthen connectivity with multinational groups and engage in the global value chains.

He suggested implementing more synchronous measures to increase SMEs' competitiveness and creativity such as facilitating business access to markets and deeper engagement in global value chains; enabling MSMEs to get access to new technologies, improve management capacity and increase competitive edge; promoting entrepreneurship and business ethics; and developing a sustainable and environmentally friendly startup ecosystem to promote innovation among SMEs in the region and value the role of female leadership.

The PM called on countries in the Asian-Pacific region to foster trust and determination to maintain a peaceful environment and ensure safety and security for the free transfer of goods, services and investment inflows.

The 24th Small and Medium Enterprises Meeting (SMEMM 24) is one of the most important ministerial events within the APEC cooperation framework, which is expected to adopt a joint statement on promoting start-up bussinesses and a strategy to develop green, sustainable and innovative SMEs, he said.

Established in 1989, APEC comprises 21 economies, including Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the US and Vietnam.

Quảng Ngãi calls for new investors in revoked projects

The central province of Quảng Ngãi has called for new investors in six projects that had their investment licences revoked due to delays from 2010 to 2015.

Head of Dung Quất Economic Zone’s management board, Nguyễn Minh Tài, said the six projects had registered to invest in the zone, but all only either not started work or only done a little.

Tài said the province has offered favourable conditions to draw new investors to revive the projects.

He said two new investors – the Hòa Phát-Dung Quất Steel company and Messeeser industrial gas company – had agreed to cover an industrial ship-building complex.

The other five projects include a seaman’s club, workers’ apartment, a villa in Vạn Tường Urban Area and an apartment east of the Trà Bồng River, and a hotel-restaurant and service complex.

These projects have been deserted for years, wasting natural resources and investment opportunities.

The 45,000ha Dung Quất Economic Zone is one of five key coastal economic zones in Việt Nam that has been prioritised for infrastructure development.

Nineteen industrial parks are available to investors with infrastructure ready, according to the management board.

According to latest reports, the province has attracted 36 foreign direct investment projects, worth $4 billion.

MEDIPLAST officially merges with VINAMED

Aiming to take advantage of each enterprise’s existing strengths to expand their scale of operations, medical equipment manufacturers MEDIPLAST and Vietnam Medical Equipment Corporation (VINAMED) have officially merged.

Accordingly, MEDIPLAST has handed over its entire assets, including cash, real estate projects, factories, and machinery, among others, to VINAMED.

In return, VINAMED issued individual shares to swap for MEDIPLAST’s existing shareholders at a ratio of 3:1. The shareholders of MEDIPLAST have become VINAMED’s shareholders, enjoying the same rights and benefit as VINAMED’s original shareholders.

The merger will help MEDIPLAST increase its capital to expand its operations. In recent years, MEDIPLAST has been having difficulties in diversifying its products due to a lack of capital, management capacity, and relationships with foreign partners, while VINAMED seems a perfect complementary partner.

The merger is an important step in building VINAMED as a corporation specialising in the healthcare sector with five key businesses, namely medical equipment production and distribution, as well as medical technology and consultancy, communications system (PACS) solutions, and healthcare facilities. These five businesses will create a closed supply-service chain for VINAMED. After the merger, MEDIPLAST will be in charge of marketing for the entire VINAMED product portfolio.

Formerly the Department of Basic Materials and Construction under the Ministry of Health (MoH), the company was officially renamed VINAMED on May 2, 1996 by MoH Decision No.720/BYT-QD. On July 12, 2016, VINAMED completed its equitisation and was officially transformed into a joint stock company.

For nearly 30 years, VINAMED has been training highly responsible and enthusiastic management staff, pharmacists, and engineers. The company’s trainees are knowledgeable about medical equipment and have experience in business, logistics services, as well as equipment repair and installation.

In May, VINAMED officially received the investment certificate to develop a high-quality medical services centre at Thanh Hoa General Hospital in the framework of Thanh Hoa Investment Promotion Conference 2017, which took place on May 18.

The project has a total investment value of VND739 billion ($32.55 million) contributed by Thanh Hoa General Hospital and VINAMED. The project is a paramount item in the plan of restructuring and developing healthcare services in the province by 2020 with vision to 2030 and is in line with Vietnam's comprehensive planning for the healthcare sector for the same time period.

Considered one of Vietnam's leading medical equipment manufacturers, MEDIPLAST operates mainly in the fields of manufacturing, trading, import and export of medical equipment, materials, and medical instruments, and related products with the most modern production lines of the UK and Japan.

In late July, it inaugurated MEDIPLAST medical plastic factory (phase 1) at the northern province of Bac Ninh's Dai Dong Industrial Zone.

Construction formally starting in November 2016, the factory was completed and came into operation in June 2017. At present, it focuses on the production of sterile plastic syringes and feeding syringes, K1 auto disable syringes, INSULIN syringes, scalp vein set needles, and infusion sets.

With an area of 13,000 square metres and staff of more than 200, the new factory in Bac Ninh will help MEDIPLAST increase production capacity and develop new products to meet the demand for high-quality plastic medical equipment in the country and become the supplier of global organisations, such as the United Nations Children's Fund (UNICEF), the World Health Organization (WHO), the Program for Appropriate Technology in Health (PATH), and the Global Vaccine Alliance Translation (GAVI), among others.

Mobile World in Top 50 leading Asia-Pacific listed companies

The Mobile World Investment JSC has appeared in Asia’s Fab 50 listed companies as voted by Forbes Asia magazine.

Mobile World is the second Vietnamese company to appear on the list during the Fab 50’s 13-year history. The company is capitalized at $1.5 billion and earned revenue of $2 billion in 2016. Established in 2004, its annual revenue growth rate has steadily remained above 60 per cent since its HSX share issuance in 2014.

It currently has 1,609 stores in Vietnam and one in Cambodia, with four brands: Mobile World, Dien may Xanh, Bac hoa Xanh, and the e-commerce site vuivui.com. Forbes also emphasized that Mobile World has ambitious plans to expand in Cambodia and to Laos and Myanmar.

To identify the Top 50 listed companies in the Asia-Pacific region, Forbes Asia’s team of professionals screened 1,964 listed companies earning annual revenue of at least $1.8 billion.

It also set other important criteria, such as corporate value or revenue not lower than five years ago, no high debt ratio, and no more than 50 per cent State ownership, and businesses must also meet dozens of different financial indicators, the aim being to provide a list of Asia’s “bluechip” elite companies.

Mobile World also appeared among the Top 50 best listed companies in Vietnam 2017 from Forbes Vietnam. The announcement ceremony was held on September 14.

In the first seven months of this year, its turnover was VND36.7 trillion ($1.6 billion), up 58 per cent year-on-year and equal to 58 per cent of the annual target. After-tax profit was VND1.26 trillion ($54.7 million), up 29 per cent year-on-year and equal to 57 per cent of the annual target. Turnover at thegioididong.com was VND20.5 trillion ($891 million), a 23 per cent increase year-on-year, and VND15.7 trillion ($682 million) at dienmayxanh.com, 138 per cent higher year-on-year. Online turnover reached VND3 trillion ($130 million), up 95 per cent year-on-year and equal to 45 per cent of the annual target.

The company opened 354 new stores nationwide in the first seven months, including 83 new thegioididong.com stores and 181 new dienmayxanh.com stores. As at July 31 it had 1,609 stores, including 1,034 thegioididong.com stores, 437 dienmayxanh.com stores, and 138 Bach hoa Xanh stores.

Ministry stipulates solar power purchase price

The Ministry of Industry and Trade has issued a circular, stipulating solar power purchase price at VND2,086 per kWh (9.35 US cents).

The price will be adjusted according to fluctuations in VND/USD exchange rate.

According to the ministry, the circular’s issue is to make transparent solar power development procedures in Vietnam, boost investment in this field, increase power system capacity and gradually raise the ratio of renewable energy in the national electricity system.

It also aims at less dependence on depleting fossil fuel, energy security, greenhouse gas emission reduction, environment protection and sustainable development.

HCMC launches social condo design competition

The Department of Construction and the Architects Association in HCMC today announced the launch of social condo design competition. 

The competition comprises of ten awards totally worth VND880 million ($38,719).

Director of the Department Tran Trong Tuan said that the competition aims to boost investment in social apartments in the city and improve design quality of these special condos.

It expected to draw attention of professional architects and organizations to select the best designs which meet all requirements of planning, architecture, economic efficiency and offer a fresh environment for residents.

Accordingly, the best works will be introduced to investors and consulting agencies in the city and nationwide.

Participants are organizations and individuals in Vietnam and those who are professional at designing apartment.

One special prize is worth VND200 million, one first prize is VND150 million, two second prizes each worth VND100 million, three third prizes each worth VND80 million and three consolation prizes each worth VND30 million.

Entries can be sent to the Department of Construction at 60 Truong Dinh Street in District 3 from now to November 3.

The prize-giving ceremony will be held in January 10, 2018.

HCM City delegation to open trade promotion in Australia and New Zealand

The Investment & Trade Promotion Centre of Ho Chi Minh City (ITPC) in collaboration with the Ho Chi Minh City Tourism Department will jointly organize a delegation "the HCMC trade and tourism investment promotion" to Australia and New Zealand, led by the city leaders. 

As scheduled, the working delegation in the two countries will start on October 23- 31, 2017 with attractive activities as conference on trade, tourism and investment promotion, investigation programs to connect trading between Vietnamese enterprises and potential enterprises of Australia and New Zealand.

Under its target of investment attraction into the city’s key projects, strengthening export and activities on trade, investment and tourism promotion into Australia and New Zealand, the program will give priorities for enterprises having projects in accordance with the policies of Ho Chi Minh City.

SBV Governor requires close control over credit in foreign currencies

The Governor of the State Bank of Vietnam (SBV) has sent Document 7295 requiring credit institutions and foreign banks’ branches to keep a close eye on credit growth rate in foreign currencies to ensure their operation safety.

They have been asked to control credit by mobilized capital in foreign currency to ensure suitable ratio and the balance between deposit and loan funds, intensify risk control in credit granting in foreign currencies.

Credit institutions should abide by reward interest rates stipulated at Circular 06 issued in 2014 and Decision 2589 in 2015 of the Governor, not apply technical measures to increase ceiling rates. They are banned from unhealthy competition in capital mobilization.

The Governor requires them to examine and spot violations in reward ceiling rates and strictly handle leaders of branches for letting violations occur and not abiding by regulations by SBV.

Businesses must spend over $629 million on specialized inspections

Businesses must take about 28.6 million working days and VND14,300 billion (US$629.21 million) to implement specialized inspection procedures, according to a Government working group.

The working group has been established to inspect how ministries have conducted specialized inspections on export import goods.

According to the group, 13 ministries have completed only 64 out of 98 assigned tasks so far. It has spotted a slew of limitations and problems in inspection operations of the ministries such as the high ratio of overlapped and conflict regulations.

One commodity is managed by many documents and must undergo specialized inspection procedures by many ministries. The ratio of one commodity undergoing 2-3 specialized inspection procedures approximates 58 percent now.

Inspection and management methods have not accorded with international standards, lengthening cargo customs clearance time. Nearly 100,000 items must experience specialized inspections right at border gates during customs clearance with the ratio of spotted violation being less than 0.1 percent.

That has raised difficulties, inconveniences and costs for businesses. Annually they must pay VND14,300 (US$629.21 million) to implement regulations and procedures on specialized inspections.

HCMC should allow small apartments

The HCMC government should allow for construction of commercial apartments smaller than 45 square meters as long as the number of such homes does not exceed 25-30% of the total, said real estate experts.

Le Hoang Chau, chairman of the HCMC Real Estate Association (HoREA), said the minimum floor area of commercial and social apartments of 45 square meters as stipulated in the 2005 Housing Law is unreasonable.

The regulation is also specified in the National Standards TCVN 4451:2012 on basic principles in house designs issued by the Ministry of Construction.

Chau said the restriction on the size of apartments makes it difficult for low-income people to own homes.

The standard should not be applied in all localities due to the differences in housing demand. Especially, in Hanoi, HCMC and seven other big cities, available land for commercial and social housing projects should be used economically and effectively.

The 2014 Housing Law which replaces the 2005 law allows investors to decide the area of the  commercial house as long as it is suitable to the housing standards set by competent agencies.

However, the Ministry of Construction has not issued new national standards for apartments in line with the new law to replace the old ones.

Nguyen Van Duc, deputy director of Dat Lanh Real Estate Co Ltd, said the ministry had earlier given the nod to the company to build commercial apartments measuring 30-40 square meters. These apartments were sold out rapidly after completion, showing the demand was huge.

At present, there is high demand for small apartments that are affordable for low-income people. The city cannot ban these apartments just because they may give rise to slums in the sky, Duc added.

Chau from the HoREA also agreed that the need for small social and commercial houses of State employees, students, workers and unmarried people is huge.

According to the 2014 Housing Law, the Government, the Ministry of Construction, and central cities and provinces can decide housing standards suitable to specific demand and conditions of localities.

Therefore, HCMC should accept commercial apartments with a minimum floor area of 25 square meters, he said.

Petrolimex asks distributors to be ready for selling E5 bio-fuel

Vietnam National Petroleum Group (Petrolimex) will completely replace A92 petrol by E5 A92 bio-fuel from January 1 next year, and has just ordered all its distributors to prepare facilities for the change, Vietnamplus reports.

Petrolimex asked its distributors to implement the project seriously by readying all mixing, transport and storage facilities to ensure the quality and safety of E5 A92.

The group also encouraged fuel traders to make the move to sell the bio-fuel earlier if preparations are already completed. A92 will be wiped out, so gas stations can sell only A95 and E5 A92, or each of them.

Deputy Minister of Industry and Trade Hoang Quoc Vuong said the ministry has worked with localities, fuel traders and bio-fuel producers to inform consumers of the imminent change, and prepare technical infrastructure and issue preferential policies to encourage the consumption of the bio-fuel.

Vietnam is now home to four bio-fuel plants including two of Tung Lam Production and Trading Co Ltd in Dong Nai and Quang Nam provinces with a total annual capacity of 200,000 cubic meters of ethanol. The other two in Quang Ngai Province’s Dung Quat and Binh Phuoc Province are expected to annually supply 200,000 cubic meters of ethanol for the market.

To implement the project, the country will need 5.4 million cubic meters of E5 fuel and 250,000-270,000 tons of E100 as raw material for bio-fuel blending.

Though local plants can meet the demand for ethanol, the Ministry of Industry and Trade has also allowed traders to import E100 to ensure the competitiveness in the market and protect consumer rights, Deputy Minister Vuong said.

Metro Line No. 2 project in HCMC stays put until 2020

The HCMC government has asked the Prime Minister for permission to delay the Metro Line No. 2 project until 2020, which is an administrative step for the city to discuss an extension of loan agreements with international donors.

In a document sent to the Prime Minister on September 7, the city pledged to shoulder all extra expenses for loan extension agreements for the metro line, which will run from Ben Thanh Market in District 1 to Tham Luong Depot in District 12.

According to the document, the city has also secured capital for the project’s site clearance compensation.

The delay is apparently due to time-consuming preparatory paperwork whose progress has fallen far behind schedule due to multiple adjustments to the project.

A source from the HCMC Management Authority for Urban Railways (MAUR) said the parties concerned are adjusting the project’s technical design and investment cost.

The HCMC government in February sent a scheme on project adjustments to related ministries and received feedback in June. The city has plans to submit the latest adjustment scheme to the Government for approval this month.

The city has also adjusted the project’s total cost to US$2.173 billion from the initial US$1.3 billion, while the groundbreaking date has not been finalized.

The districts which the metro line will pass through have been asked to finish site clearance before June 2018.

On September 8, Le Van Khoa, director of Metro Line No. 2 project, said the construction process has to be adjusted due to slow site clearance and complicated procedures.

Metro Line No. 2 has a total length of 11 kilometers and an original investment cost of US$1.3 billion, including loans worth US$540 million from the Asian Development Bank (ADB), US$313 million from the German Development Bank (KfW), US$195 million from European Investment Bank (EIB) and US$326.5 million from the city’s budget.

According to the initial plan, the project would get off the ground in 2016 and be up and running in 2020.

EZ Land enters Vietnam’s real estate market

 EZ Land Company of Luxembourg’s international investment fund KEY SICAV SIF on Monday announced its participation in Vietnam’s real estate market with a plan to invest US$200 million in housing projects in the country.

EZ Land plans to build 1,000-1,500 apartments a year in the next five to eight years and focus on homes for low-income people, a segment forecast to keep growing in the coming time.

Oliver Brazier, CEO of EZ Land Vietnam, said his company will ensure the construction pace of projects and supply customers with high-quality apartments at reasonable prices.

Its first project named HausNeo in District 9 including 568 units requires VND500 billion (US$21.94 million). EZ Land’s apartments will be designed in the Bauhaus style of Germany, focusing on both the beauty and utility of apartments.

EZ Land Vietnam will acquire other enterprises’ projects whose construction has not been commenced and will not use the available designs of previous investors, said Oliver Brazier.

In fact, EZ Land has been present in the domestic housing market for two years but its presence in Vietnam and its first project were only revealed several days ago. The company wants to prepare well for the implementation of its projects, such as completing administrative procedures and choosing ideal locations, to meet the demand of local people.

Triumph Motorcycles eyes investment in Vinh Phuc

A delegation from Triumph Motorcycles has visited the northern province of Vinh Phuc to explore investment opportunities.

The company plans to build a factory manufacturing high-end motorbikes in the locality, according to the provincial People’s Committee.

During a working session with local authorities, Jamie Looker, Triumph Motorcycles Chief Operating Officer, said the company, established in 1884, currently has factories around the world with the growing market share.

The company plans to launch a showroom in Ho Chi Minh City by the end of this year, he added.

Le Duy Thanh, Vice Chairman of the provincial People’s Committee pledged that the province will create favourable conditions for the UK firm to build the factory.

He briefed the guests on local potential and advantages in economic development, investment attraction and industrial development, particularly in the automobile and motorbike industry, which has made a significant contribution to the province’s budget.

The province is home to several major automobile and motorbike firms’ factories, including Honda, Toyota, and Piaggio, and other spare part factories.

Dong Nai records 1.4 billion USD trade surplus in eight months

The southern province of Dong Nai enjoyed a trade surplus of nearly 1.4 billion USD in the first eight months of the year, according to the provincial Statistics Office.

In the eight-month period, the province shipped nearly 11 billion USD worth of products to foreign countries, a year-on-year increase of 11 percent.

The trade surplus was contributed by key staples like footwear (1.9 billion USD, up 9.4 percent), garments (over 1 billion USD, up 8.2 percent) and wooden furniture (722 million USD, up 12.3 percent).

The provincial People’s Committee said that the footwear sector has witnessed the highest export turnover in the past years. Foreign direct investment (FDI) companies like Changsin, Taekwang Vina and Pouchen have enjoyed sound and stable growth. They are committing to raising production capacity to meet orders from the world’s big footwear brands in the coming time.

Despite facing fierce competition with Chinese, Indian and Bangladeshi enterprises, Vietnamese garment businesses still ensure stable orders thanks to their prestige and product quality.

Regarding wooden products, numerous firms have sought new markets while taking advantage of the free trade agreements signed with the Republic of Korea and Japan to boost their exports.

Meanwhile, several products saw high export growth like fibre (795 million USD, up 25.6 percent), machines and equipment (670 million USD, up 22.9 percent), computers and electronic products (318 million USD, up 22.8 percent).

High export prices of agricultural products also contributed to the province’s export revenue.

The largest importers of Dong Nai goods in the period were the US with revenue of 2.54 billion USD, China with 944 million USD and Japan with 934 million USD.- 

Hai Phong told to revise fee collection

Deputy Prime Minister Vuong Dinh Hue has asked the Ministry of Finance and Hai Phong city to strictly follow the PM’s instruction on reviewing fees for using infrastructure, service facilities and public utilities at ports in the city.

The Government Office has sent Document 9014/VPCP–KTTH to the city’s People’s Committee to convey the Prime Minister’s instruction on the issue. The previous document from the Government in May said adjustments in fees were needed to ensure they are reasonable, comply with the law and create favourable conditions for import and export firms, as per Government resolutions on improving the business climate.

The document was sent right after the municipal Hai An district People’s Committee required businesses that have imported and exported goods through the city’s ports to pay fee from the beginning of the year to quickly complete the payment. The deadline is September 15.

The announcement by Hai An district also said if firms did not pay the fee by the deadline, they would be subject to administrative penalties stipulated under Decree 109/2013/NÐ-CP, dated September 24, 2013, on price management, fees and invoices.

The district also said they would apply coercive measures on companies that did not follow the announcement.

“Customs units, bonded port and warehouse trading firms in Hai Phong will not allow import-export goods through their seaports if companies do not pay the fee,” the announcement said.

The district said most businesses have executed the resolution that came into effect from the beginning of this year, regulating fees for construction, infrastructure, service buildings and public utilities at ports. However, there were some companies that had not paid the fee.

Under the resolution, individuals and organisations that have shipments stored at bonded warehouses must pay 2.2 million VND (97 USD) to 4.8 million VND (220 USD) per container, an increase of nearly 70 percent from the previous fee.

The municipal People’s Committee said fee collection was legal and suitable with the current laws. In addition, the fee is half of that collected at the Lao Cai border gate, it said.

Businesses, meanwhile, expressed their disagreement with the city’s resolution, saying the fees were unreasonably high and undermined their competitiveness.

The Vietnam Private Sector Forum (VPSF) has proposed the municipal people’s committees conduct direct dialogues with businesses and associations to collect their ideas on the issue. In addition, associations also sent several documents to the Government to resolve the problem.

Pham Thi Ngoc Thuy, VPSF’s deputy general secretary, said the short duration between the resolution’s promulgation and it coming into effect has made businesses passive, as all issues, including contract and price for the whole year, were negotiated and signed beforehand. The fee could make their export products’ prices higher, causing losses for businesses.

Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said the resolution could be a dangerous precedent for other localities which have seaports and airports to collect fees in the future, creating disadvantages for the country’s export activities.

Hai Phong Port is the second-largest port in Vietnam with one third of total cargo passing through it. 

Vinatex seeks investment opportunities in Armenia

A delegation of the Vietnam National Textile and Garment Group (Vinatex) made a fact-finding trip to Armenia in late August to seek partners to develop production projects as Vietnam is the first country to sign a free trade agreement with the Eurasian Economic Union (EAEU) that includes Armenia.

Vinatex General Director Le Tien Truong said during their stay, the group’s representatives held working sessions with a deputy foreign minister, the minister of economic development and investment, and some major businesses in Yerevan capital city of Armenia.

He said Vinatex will consider production and business cooperation with big companies of Armenia that have already had distribution networks in Russia and the EU. In the initial stage, the group will mainly contribute machinery and production administration.

At the meetings, the Armenian Government expressed its desire to cooperate with major firms with much experience in production management like Vinatex so as to revive the local garment industry and boost export.

It also promised to encourage investment attraction, create favourable conditions for foreign investors, and provide special mechanisms for Vietnamese investors through cooperation policies, multilateral and bilateral cooperation agreements, and granting of work visas, Truong added.

According to Vinatex, 94 businesses are operating in the textiles and garment industry of Armenia. The country exported 50 million USD and imported 170 million USD worth of textile and garment products in 2014.

Despite their small and outdated scale, Armenian firms have experience in working with big fashion brands of Italy and Germany such as La Perla, Moncler, Armani and Porsche.

The country has also benefited from a number of tax incentives thanks to free trade agreements when its products enter the Russian or EU markets.

2.7 million foreigners visit Quang Ninh in eight months

The northern province of Quang Ninh welcomed 2.7 million foreign visitors in the first eight months of 2017, up 20 percent from the same period last year.

The figure contributed to a 16-percent annual increase of the total tourist arrivals in the province during the period, reaching 7.34 million.

As a result, the local tourism sector reeled in nearly 11 trillion VND (484 million USD) in revenue, increasing 26 percent from last year.

The outcomes were attributable to new tourism products, better policies for strategic investors in tourism infrastructure, and heavy fines on travel agents offering low-quality services. 

According to a report from the provincial Tourism Department, in the upcoming National Day holiday (September 2 – 4), the province will receive more than 70,000 visitors, including 15,000 foreigners.

Currently, all star-rated hotels in Ha Long city have been fully booked for the three-day vacation.

Quang Ninh has a special geopolitical and economic position with the world natural heritage site of Ha Long Bay as well as more than 600 natural landscapes and historical relic sites.

Ho Chi Minh City, Utah State vow to promote trade, high-tech links

Ho Chi Minh City appreciates foreign resources which have helped with the city’s development into an economic, financial, trade and science-technology centre in the region, Chairman of the municipal People’s Committee Nguyen Thanh Phong told visiting Governor of the US State of Utah Gary Herbert during a reception on September 1. 

Phong expressed his hope that Utah and Ho Chi Minh City will increase diplomatic activities and bilateral cooperation programmes for the common benefit of the two peoples. 

He wished that Utah businesses would explore long-term business opportunities in the city in priority fields such as tourism and high technology. 

Herbert, for his part, said Ho Chi Minh City and Utah share similarities in development history, cultural values, young population as well as challenges arising from growing urban population and environmental protection.

The guest expressed his wish that Ho Chi Minh City would facilitate visits to share experience in developing clean energies, environment and education to improve local well-being. 

On the occasion of the Utah governor’s visit, memoranda of understanding were signed on cooperation between the Saigon Hi-tech Park and the Utah State Centre for Research and Science-Technology, and between the Saigon Silicon Park company and the Utah World Trade Centre.

Japanese firms seek investment opportunities in Vietnam

The Vietnam-Japan Investment Cooperation Forum was held on September 15 in Yokohama by Kanagawa Prefecture in collaboration with the Ministry of Planning and Investment and the Embassy of Vietnam in Japan. 

The event saw the participation of delegates from nearly 200 Japanese enterprises and more than 40 enterprises in Vietnam’s provinces of Dak Lak, Ha Nam, Hung Yen and Hau Giang.

Speaking at the forum, Governor of Kanagawa Prefecture Kuroiwa Yuji spoke highly of Vietnam's investment environment with its abundant labour force, maintaining a high economic growth rate of over 6 percent, and its favourable policies, as well as improved administrative procedures. 

Governor Kuroiwa Yuji expressed his hope through the forum that Japanese businesses will continue to invest more in Vietnam.

Vietnamese Ambassador to Japan Nguyen Quoc Cuong said that the friendship Vietnam and Japan is the cornerstone of economic cooperation between the two countries, he added that Vietnam is becoming one of the most attractive investment destinations for Japanese businesses. 

He thanked the Kanagawa Prefecture for organising the forum while praising the efforts of Governor Kuroiwa Yuji in contributing to better bilateral relations.

Representatives from the provinces of Dak Lak, Ha Nam, Hung Yen and Hau Giang introduced their strengths, potential and incentives to Japanese enterprises. The presentation attracted the attention of many Japanese businesses.

Kanagawa has a population of about 9 million, second only in Japan after Tokyo, with GDP of more than 300 billion USD. It is also one of Japan's most invested provinces by Vietnam. The province has its own industrial park in Hung Yen.-

Shares mixed on EFT trading

Shares declined on the HCM Stock Exchange on the last four days this week, but strong demand from local traders cushioned the market.

The benchmark VN-Index inched down 0.06 percent to 805.82 points on September 15. It expanded 1.1 percent in the last three sessions.

The market breadth was neutral with 130 stocks rising, 129 falling and 84 closing flat.

Two exchange-traded funds (ETF) – FTSE ETF and V.N.M ETF – concluded trading for their third-quarter portfolio restructuring and this had a negative effect on the market as many large-cap stocks were in the list for sale of these two funds.

Shares of Vietnam National Petroleum Group (PLX), Saigon Beer-Alcohol-Beverage (SAB) and budget airline Vietjet (VJC) were included in the FTSE Vietnam All-Share Index, but VJC closed unchanged while PLX and SAB decreased 0.15 percent and 0.18 percent, respectively.

Meanwhile, Hoa Binh Construction Group (HBC) was included in the V.N.M ETF’s portfolio, but edged up just 0.33 percent. FLC was removed from the fund’s basket this time and dropped 0.4 percent.

Other major stocks, although being increased or reduced weights in ETF’s portfolios, saw little changes. In recent years, ETF portfolio restructuring has not generated as great influence on the market as before.

Vinamilk (VNM), VinGroup (VIC) and Masan Group (MSN) dropped 0.2-0.5 percent while steelmaker Hoa Phat Group (HPG) and FLC Faros Construction (ROS) rose by less than 1 percent.

According to Vietnam Investment Securities Co, investors begin to pay attention to the stocks with promising business results in the third quarters.

“The company keeps a cautious view on the market outlook, but opportunities are open to individual stocks,” it said in a note.

Shares of real estate and securities companies attracted big money September 15 and most of them saw gains in value, including Saigon Securities Inc (SSI), HCM Securities (HCM), MB Securities (MBS), Novaland Investment Group (NVL), HCM City Infrastructure Investment, Dat Xanh Real Estate Service & Construction (DXG) and Dream House Investment (DRH).

On the Hanoi Stock Exchange, the HNX-Index maintained the uptrend, up 0.1 percent to end at 104.49 points. It inched down 0.05 percent on the previous day.

Liquidity changed little with a total of 218.3 million shares worth 4.8 trillion VND (211.4 million USD) in the two markets, down 6.3 percent in volume but up 6.7 percent in value compared to the previous session.

Foreign investors were net sellers on the two exchanges September 15, offloading shares worth a combined 293.6 billion VND. 

Auto prices slashed further

Many car manufacturers in Việt Nam continue to apply discounts and promotions to stimulate purchasing.

Insiders say slashing auto prices is reasonable in light of next year’s zeroeing-out of import tariffs from ASEAN member states. Along with inventory pressure, this has led manufacturers to cut back on profit to encourage consumption.

After announcing a reduction of hundreds of millions of đồng for Honda CR-Vs, a run on the dealerships emptied out their stocks. In one month, the prices of luxurious SUV Honda CR-V 2.4 ATTG model, CR-V 2.4 A.T and CR-V 2.0 A.T have been dropped by VNĐ280 million, VNĐ330 million and VNĐ220 million, respectively. This has made way for the new model of the imported seven-seat CR-V series at nearly the same price as CR-Vs assembled in the country, without a discount (about VNĐ1.1 billion).

Mitsubishi Motors Việt Nam (MMV) will continue to offer car price incentives this month of as much as VNĐ180 million (depending on the model).

Trường Hải Auto Corporation (Thaco) also announced a price reduction of the Mazda CX-5 to less than VNĐ800 million, down about VNĐ200 million compared with previous months.

Jumping on the bandwagon, other auto firms such as Nissan, Toyota Motor Vietnam (TMV) and Chevrolet also decreased prices of locally-assembled cars.

TMV has recently announced its two-month promotion programme for locally-assembled models of Vios and Innova. Accordingly, the corporation will pay the vehicle registration fees of between VNĐ15 million and VNĐ30 million.

Nissan, another brand name from Japan, will give buyers rebates of VNĐ5 million to VNĐ35 million and will also pay registration fees worth from VNĐ13.3 million to VNĐ29.8 million, in addition to providing an accessories package. The total value of the cuts applied on each Nissan Vietnam car is approximately VNĐ50 million.

Prices of imported types of Toyota Fortuner and Yaris and of several types of Hyundai cars imported from Thailand, Malaysia and South Korea have remained stable.

According to a report by the Vietnam Automobile Manufacturers’ Association released on Tuesday, auto sales dropped sharply in recent months. In the first eight months of this year, 177,038 units were sold, 10,825 fewer than last year in the same period.

Sales of locally-assembled autos also dropped sharply as customers await next year’s anticipated tariff cancellation. This, combined with a preference for imported vehicles has resulted in a drop of 11 per cent of locally assembled cars, to 126,984 units in the first eight month of this year, whereas the number of imported vehicles rose 10 per cent to 50,052 units.

Insiders say once locally assembled vehicles are sold out, car prices may rise again; if they drop due to the zero import tax, the price reductions will not be as sharp.

Ngọc Thọ, a resident of Hà Nội, told the news website dantri.com.vn that despite the discounts, Vietnamese customers pay far more for their cars than the cars’ value. Thọ calculated that, the CX5 2.5, the most expensive version of Mazda CX5 in Việt Nam, is being sold at VNĐ899 million. To own the vehicle, customers will have to pay nearly VNĐ1.02 billion, including registration fees and insurance. Meanwhile, the most expensive CX5 version in other countries sells at VNĐ600 million.

Phạm Anh Tuấn, head of the Vietnam Automobile Manufacturers’ Association (VAMA)’s Policy Sub-Committee, told the website that in fact, taxes in Việt Nam are highest compared to other countries in the region and also in the 21-nation Pacific Rim forum states. Taxes account for 40-50 per cent of the total value of a vehicle. The company only gets about 10 per cent of the profit, the dealer gets about 5 per cent of the total value of the car depending on the marketing and sales capabilities.

Rice exports up significantly
     
Viet Nam has exported 3.87 million tonnes of rice worth US$1.66 billion in the first eight months of the year.

According to the Viet Nam Food Association this represents increases of 17.7 per cent in volume and 16.6 per cent in value year-on-year.

Asia remained the main market, accounting for 67 per cent of the shipments, as exports to mainland China, the Philippines, Malaysia, and Singapore increased.

But exports to Hong Kong fell significantly.

Africa was the second biggest market, accounting for 15.7 per cent of the exports, with the Americas and Australia being third and fourth.

The association said high-grade white rice, fragrant rice and glutinous rice were the main export items.

Viet Nam’s 5 per cent broken white rice is currently priced higher than Thailand’s but lower than India’s due to limited supply, he said.

But the association said the price of common white rice would be reduced to compete with Thai rice to meet new demand.

Huynh The Nang, the association’s chairman, said the summer-autumn rice crop has been harvested, with output being lower than expected, and large areas of newly planted autumn-rice crop are inundated and likely to be affected.

Prices would remain high in the domestic market until the year-end due to limited supply, he added.

The VFA said demand for common white rice and parboiled rice would continue to increase this year mainly driven by imports by Bangladesh, Sri Lanka, and the Philippines.

Fragrant rice exports would be steady thanks to continuing demand from Africa and China and new demand from Iran and Iraq, it said.

The market for long-grained white rice, speciality rice, sticky rice, and broken rice would continue to be dominated by China, while exports of Japonica rice would continue to rise and the variety promises to become one of the country’s key exports, with its main markets being countries in Oceania and China, it said.

Exports are no longer based on demand for common white rice from traditional markets under government-to-government contracts, with enterprises actively promoting exports of speciality, high-quality, fragrant, sticky, and broken varieties, it added.

Nang said despite difficulties, rice exports would rise this year.

At a meeting it held on Wednesday the association fixed a export target of 1.8 million tonnes in the four remaining months to take the whole-year volume to 5.6 million tonnes. 

International livestock expo set to take place next year
     
The seventh international livestock, dairy, meat processing and aquaculture exposition will bring thousands of people to HCM City in March next year.

More than 8,000 trade visitors are expected to participate and interact with 250 international brands from 30 countries. The exposition, Ildex Viet Nam 2018, is organised by Minh Vi Exhibition and Advertisement Services Co., Ltd. (VEAS) in collaboration with VNU Exhibitions Asia Pacific Co., Ltd. It will take place on March 14-16.

The event is expected to see an increase in both visitors and exhibitors compared to those of 2016, when there were 7,000 visitors and 202 exhibitors.

The area for the exhibition also grows from 6,000 sq.m. at the previous event to 7,500 sq.m. this time.

The show be divided into areas of focus that include animal breeding and genetics, meat processing, animal equipment, farming, feed milling, animal health, animal feed, feed additives and animal nutrition.

The exhibition will also present five country pavilions representing the Netherlands, France, the US, South Korea and China.

The livestock and aquaculture industry is one of the primary economic sectors of our country. In the first half of 2017, it is expected to contribute 0.43 percentage points to the growth rate of the entire economy, according to the Department of Statistics. Officials at the kick-off conference in Hà Nội yesterday said technology will play an important role in the industry’s future.

“Applying new technologies in breeding and aquaculture not only helps to develop the quality of products but also helps to reduce pollution and saving costs,” said Nguyễn Xuân Dương, deputy director of the Department of Livestock production under the Ministry of Agriculture and Rural Development. However, application of these technologies still has many limitations and the industry is currently inefficiently developing its potentials.”

“I also believe that through this exhibition, businesses and companies will have opportunities to compare our proficiency with our competitors as well as find new partners for collaboration,” he added. “Business could also get chances to become an import agent or distributor for many international partners,” he added.

Speaking at the conference, Nino Gruettke, managing director of VNU Exhibitions Asia Pacific Co., Ltd said that Viet Nam’s rising population, income levels, changing cultural preferences and new trade agreements had opened the door to significant growth in the meat industry.

“The livestock market in Asia is growing rapidly and this trend is expected to continue in the foreseeable future,” the director said. “The important countries in Asia which have the rapid economic growth rate that global investors keep an eye on are the Philippines, Singapore, Thailand, Cambodia, Laos, Malaysia and Viet Nam.”

He also noted that the global business trend now was how to integrate livestock and agribusiness together and drive business with IT, automation and Internet systems. Growing populations meanwhile demand agribusiness innovate quickly to keep up with demand.

“This is the important point that all product business have to realise and find the solutions to increase the productivity and feed the world in the limited space,” he said.

First int’l agro-forestry-fishery exhibition to be held in VN
     
The first International Agriculture–Forestry–Fishery Exhibition (Growtech 2017) will take place in Ha Noi from November 30 to December 2, the organisers have announced.

Jointly organised under the chairmanship of the Ministry of Industry and Trade, with the Ministry of Science and Technology and Ministry of Agriculture and Rural Development, this is the first Growtech event to be held in the country.

The exhibition is the largest and only specialised display of machinery, equipment and technology for farming, harvesting and preserving, bringing together major domestic and international enterprises operating and doing business in related fields.

The exhibition offers opportunities for farmers, fishermen and workers in the forestry sector to experience the latest technology and activities in all three fields of agriculture, forestry and fishery.

Besides displaying and demonstrating important innovation activities, Growtech also contributes to trade promotion in the three fields in Viet Nam.

In the context of globalization, Viet Nam's increasingly active participation in free trade agreements is opening up more great opportunities for domestic businesses.

Growtech was organised with the desire to develop a prestigious connection among industry players and to promote trade activities in the agriculture, forestry and fishery sectors.

Furthermore, the exhibition aims to lead to more national development, with Viet Nam becoming a leading exporter of commodities, agricultural products and food and staying among the top-five exporters with a gradually increasing growth rate in the three sectors.

Up to date, the exhibition has attracted the registration of 150 enterprises with more than 300 booths from businesses from all provinces and cities in Viet Nam, and 10 countries and territories with notable businesses from the UK, Italy, Czech Republic, Israel, Indonesia, Korea, Japan, China and Taiwan, among others.

Hosted at the international ICE exhibition centre, it is expected to have around 450 booths and attract more than 10,000 visitors, delegates and specialists from more than 20 countries and territories, including Viet Nam.

During 30 years of renewal (1986 - 2016), Viet Nam’s agriculture has achieved rapid and stable growth, with a positive shift in agricultural structuring.

From 2016 to 2020, the agriculture-forestry-fishery industry in Viet Nam increased its added value with sustainable development; applied scientific and technical achievements to improve capacity, productivity and quality; promoted commodity production moving towards a modern market economy; and increased its competitiveness and maintained rapid development efficiently and safely to become one of the key leaders of national exports.

Animal husbandry, fish processing, aquaculture, environmental protection and biodiversity conservation are some of the areas that are closely linked to the new national rural development strategy. 

Ford Vietnam Delivers Record August Sales
     
US auto maker, Ford Vietnam has announced a record August performance with retail sales rising 8 per cent year-over-year to 2,292 vehicles.

The EcoSport, Ranger, Transit and Explorer led the record sales month with each leading their respective segments for the month and year-to-date.

Ford Vietnam remains on track for another record full-year performance with year-to-date sales increasing 3 per cent to 19,081 vehicles.

“Our showrooms across the country remained busy despite the retail impact typically associated with ghost month [Lunar July], and our best-selling nameplates continued to drive our overall performance,” said Phạm Văn Dũng, managing director, Ford Vietnam.

Ranger delivered August retail sales that increased 16 per cent to 1,183 vehicles, as it continues to lead the country’s pickup truck segment. Ranger’s year-to-date sales have risen 4 percent to 9,475 vehicles.

Demand continued in August for the premium Explorer mid-size SUV, which again led its segment for the month with retail sales of 82 vehicles. Year-to-date sales of the US-imported Explorer have now reached 891 vehicles.

The Transit maintained its leadership of commercial van and bus segment in Việt Nam with August retail sales of 558 vehicles, driving year-to-date sales up to 4,092 vehicles.

The Everest mid-size SUV achieved August sales of 98 vehicles, driving its year-to-date sales to 836 vehicles. The EcoSport compact SUV delivered August retail sales of 260 vehicles, pushing its year-to-date sales up to 2,658 vehicles and maintaining its segment leadership.

The sporty Focus passenger car saw its August sales rise 17 per cent to 84 vehicles, with year-to-date sales now up 26 per cent to 790 vehicles. 

Annual Sony Show opens in HCM City
     
The three-day Sony Show which opened in HCM City on Friday is showcasing the Japanese giant’s latest products and most advanced technologies.

The annual event, dubbed “Experience to the Max” this year, offers consumers a chance to experience Sony’s new technologies.

The Xperia XZ1 smartphone, recently launched in Germany, is among the latest products on show. The phone has 3D technology which permits users to take 3D photos.

The Bravia OLED 77-inch TV is on display for the first time in Viet Nam.

The show is a good destination for game lovers, who can go to Playstation booths to play games like Farpoint, Destiny 2, Knack 2, Tekken 7, PES 2018, and GT sport.

Many cameras and headphones are on display.

Dance and music competitions will be organised to attract young customers.

A game competition will also be held.

The event is on at the Youth Cultural Centre in District 1. 

VN-Index corrects downwards
     
Large-cap stocks slumped on Friday morning, pulling the VN-Index down 0.25 per cent at 804.34 points.

This is the first decline of the southern market in the last four days.

The market breadth was negative on the HCM Stock Exchange as the decliners outnumbered the advancers by 123-107, while 113 remained flat.

Blue chips led the downturn, with 18 of the top 30 largest shares by market value and liquidity decreasing and only 10 increasing.

Losers expanded from banks (Vietcombank, BIDV, Vietinbank and Military Bank) and energy (PV Gas, PetroVietnam Drilling and Wells Service) to retailers (FPT Corp and Mobile World Group) and food-beverages (Vinamilk and Sabeco).

Some shares bucked the trend and supported the market, including steelmakers Hoa Phat Group and Hoa Sen Group, VinGroup, FLC Faros Construction, DHG Pharmaceutical and insurer Bao Viet Holdings.

On the Ha Noi Stock Exchange, the HNX-Index was still up 0.14 per cent at 104.53 points.

Liquidity dropped substantially when only 106.2 million shares, worth a total of VND1.9 trillion (US$81.7 million), were traded in the two markets, down 23.6 per cent in volume and 29 per cent in value from Thursday’s morning session.

The afternoon trade session starts at 1 pm.

VNPost to divest from its member company
     
Viet Nam Post Corporation (VNPost) will auction its stake of 8.79 million shares in Post and Telecommunications Tourism Joint Stock Company, equivalent to 90.22 per cent of the charter capital.

The auction will take place at the Ha Noi Stock Exchange on September 28.

The total value of shares offered for sale is VND87.9 billion (US$3.87 million), with the starting price of VND18,500 per share.

Established in 2001, Post and Telecommunications Tourism Joint Stock Company has initial registered capital of VND120 billion.

Currently, the company owns charter capital of VND97.51 billion, of which VNPost holds 90.22 per cent.

The company focuses on providing hotel and restaurant services, organising travel tours, and managing transportation and consultation services.

According to the enterprise’s valuation results, the total value of the company’s assets is VND194.66 billion, while liabilities is VND14.67 billion and the remaining value of the enterprise is VND179.99 billion, of which cash and short-term investments account for VND66 billion.

In 2017, the company has targeted net revenue of VND56 billion and after-tax profit of VND3.2 billion. 

Seminar discusses Dong Nai property
     
With its favourable location, good infrastructure and moderate land prices, the southern province of Dong Nai has become the focus of attention of property developers in recent years, a seminar heard in HCM City on Thursday.

Le Trong Minh, editor–in-chief of Dau Tu newspaper, said Dong Nai is a good choice for home buyers who cannot afford to buy in HCM City and are looking at neighbouring provinces.

Dong Nai lies on many important traffic routes such as National Highways 1A and 20; National Road 51; the HCM City –Long Thanh-Dau Giay, Ben Luc-Long Thanh, Dau Giay-Phan Thiet, Dau Giay-Da Lat, and Bien Hoa-Vung Tau highways; and the north-south railway, he said.

HCM City’s first metro route would be extended to the province’s Bien Hoa city, he said.

The province now is home to nearly 300 property projects by both local and foreign investors, many of them worth billions of dollars, he said.

Su Ngoc Khuong, property consultant Savills’ investment director, said the province itself has nearly 100km of railway and six stations.

Besides, its property market got a boost from the Government’s approval for Long Thanh International Airport, he said.

Convenient transportation is the top factor in property investment, he said.

Land for construction purposes has attracted more investment than other segments, with investors eyeing the future, he said.

Nguyen Thanh Lam, deputy director of Dong Nai Province Department of Construction and chairman of the Dong Nai Property Association, said the property market in the province is divided into three groups.

The first group includes projects connected with the existing urban areas like Bien Hoa city, Long Thanh, Trang Bom, and Long Khanh.Those property projects require only short-term investment.

The second group are properties located in the suburbs of towns and cities, with technical infrastructure connected to the main technical infrastructure under development. The projects required investment between 5-7 years, he said.

The third group comprises projects around the Long Thanh Airport, with a total of 21,000ha. Secondary investors that want to invest in those areas should have strong financial capacity to minimise risks, he said.

"I think, investing in the first and second property groups will be the most effective, and can get profits immediately while investing in the third group will take longer time because of lack of planning," he said.

Le Hoang Chau, chairman of the HCM City Real Estate Association, said the Government has approved construction of the Cat Lai Bridge 2 between District 2 and Nhon Trach in Dong Nai.

“In five more years, thanks to this bridge, the property market in Nhon Trach will take off and this is an opportunity for investors.”

He hoped the project would be carried out on schedule.

But the market also has risks and requires investors to find reliable source of information before buying, he said.

“Recently we have received complaints from 300 people about two real estate brokerage firms who used tricks such as renaming projects and developers, forging 1/500 zoning plans and adding details to them to inflate land prices by VND100-200 million per plot.”

The projects are located in Nhon Trach, Long Thanh and Trang Bom, he said.

Lam said the two are registered in HCM City, and the Ministry of Public Security is investigating.

Tran Thi Cam Tu, general director of Eximrs Real Estate Services JSC, said: “This is a promising market to invest in.”

But she said investors should not rush but instead should check the title deeds of properties carefully to avoid risks.