CDH Electric Bee further divests from MWG

Investment fund CDH Electric Bee Limited has again sold its shares in Mobile World Investment Corp (MWG), also known as The Gioi Di Dong, according to a notice of the Vietnam Securities Depository (VSD).

As many as 1.23 million MWG shares were transferred to four investors: Viola Ltd, KB Vietnam Focus Balanced Fund, Aberdeen Frontier Markets Investment Co Ltd, and Florida Retirement System. VSD completed the share transfer last Thursday.

As of last Friday, the MWG share price was VND127,500 (US$5.6) each.

In October 2016, CDH Electric Bee Limited sold three million MWG shares, thereby reducing its stake in the electronics retailer to 3.22%. It then sold more MWG shares last year to decrease its ownership.

Meanwhile, Dragon Capital is striving to purchase MWG shares. Notably, KB Vietnam Focus Balanced Fund has links with Dragon Capital.

In a related development, Mekong Enterprise Fund II Ltd has registered to offload five million MWG shares, or a 1.58% stake, in the retail corporation between January 9 and February 7 through VSD. The move is to sell its entire stake in the retailer.

Robert A. Willet, the former CEO of U.S. electronics retailer Best Buy, has become an investor of MWG since May 2013. Willet has been appointed board member of The Gioi Di Dong, enabling him to contribute to building the local retailer’s business plans and strategies.

Southern provinces to jointly build Ring Road 3

Transport authorities of HCMC and seven neighboring provinces have discussed the implementation of traffic infrastructure development projects in the southern key economic zone, including Ring Road No. 3.

At a meeting with transport officials of Binh Duong, Dong Nai, Binh Phuoc, Ba Ria-Vung Tau, Long An, Tay Ninh and Tien Giang provinces, Bui Xuan Cuong, director of the HCMC Department of Transport, said Ring Road No. 3 would help ease traffic congestion and facilitate trade in the zone.

Designed to pass through HCMC, Dong Nai, Binh Duong and Long An, the road will start in Ben Luc, run through Nhon Trach, Tan Van, Binh Chuan, and National Highway 22 and end in Ben Luc.

It has a total length of 89.3 kilometers including 73 kilometers of new road and 16.3 kilometers of the My Phuoc-Tan Van section which has been put into use.

The project requires an estimated VND55.8 trillion (US$2.5 billion), excluding the cost for overpasses. The investment will be sourced from the State budget, Government bond issues and official development assistance (ODA) loans.

The southern key economic zone is important to the country’s socio-economic development strategy, and a good traffic infrastructure system will allow the zone to gain higher growth, contributing to the country.

The departments of transport of the eight provinces agreed to call for the southern key economic zone council to propose the Ministry of Transport ask the Government for permission to adjust traffic infrastructure development plans for the zone in the second quarter of this year.

Last year, HCMC and neighboring provinces cooperated to solve traffic problems. The city worked with Long An Province to develop connecting roads such as National Highways 1A and 50, and provincial roads 7, 8 and 10.

The city also coordinated with Tay Ninh Province to widen National Highway 22 and Binh Duong and Dong Nai provinces to extend Metro Line No. 1, and build Cat Lai Bridge across the Dong Nai River.

Vietnam should work towards achieving income per capita of US$10,000

Vietnam should work harder to raise income per capita to US$10,000, said Minister of Planning and Investment Nguyen Chi Dung.

Dung said at a forum on sustainable growth in Hanoi City last week that many have warned that Vietnam might fall into the middle-income trap – the situation in which growth slows after reaching middle income levels, but in fact, the nation is already in it.

Vietnam’s income per capita, he noted, is as low as US$2,300 while the figure of neighboring China is US$8,000 and is expected to soar to US$10,000 in 2020.

To get out of the middle income trap, he proposed, income per capita should be increased to US$10,000 but this will prove to be a tough challenge.

Vietnam should work towards becoming a modern industrialized economy, he said, adding these two targets should be fulfilled at the same time.

Minister Dung also voiced his concern over high risk of the economy slowing down. The economy is still maintaining momentum for growth for now but if it fails to sustain it over a long period of time, it will certainly lag behind other countries.

“Other countries do not wait for Vietnam to grow. If we make one step forward, they will grow tenfold,” he said.

Vietnam’s GDP per capita, and labor productivity are low while the total factor productivity (TFP) is also below expectations.

Around 100 legal documents and 20,000 master plans have not done anything good in reality as they are not compatible with what the market needs and wants, according to Dung.

He said the upcoming Law on Planning is intended to abolish master plans for product development. The distribution of goods will be decided by market forces, he added.

He revealed contents concerning infrastructure, environment and society in regional and national master plans would be merged into a single general master plan. This would prevent any conflicts among sectors and development goals of cities and provinces would not clash with one another.

To narrow Vietnam’s development gap with other countries, he called for the Government to deepen institutional reform and revise laws to build a true market economy.

The Government should also create a level playing field, speed up the restructuring of State-owned enterprises, prop up the private sector, and attract more foreign direct investment.

The Government should further promote innovation and creativity, and pay special attention to growth drivers

The Government should guarantee social inclusion and equity, and environmental sustainability in response to climate change, according to the minster.

VRG expects to list on HOSE in mid-2018

Vietnam Rubber Group (VRG) expects to trade its shares on the Hochiminh Stock Exchange (HOSE) in June or July, four to five months after the launch of its initial public offering (IPO), said VRG board member Pham Van Thanh.

At an event held in HCMC last week to introduce opportunities to invest in VRG shares, Thanh said VRG shares would be traded on the unlisted public company market (UPCoM) 25 working days after the IPO. The group would also make preparations to float its shares on HOSE.

VRG earlier planned to offer more than 475 million shares, or 11.88% of its chartered capital, on February 2 at the starting price of VND13,000 (US$0.57) each. These shares will be sold to strategic investors that are local firms with strong finances.

Ha Cong Tuan, Deputy Minister of Agriculture and Rural Development and head of the steering board for the VRG equitization plan, said the share price would not be lower than the average in the IPO.

Last year, VRG made VND27 trillion in revenue, over VND5 trillion in pre-tax profit and VND4 trillion in net profit, all exceeding the full-year targets, said VRG general director Tran Ngoc Thuan.

Ineffective oil projects put PVEP in peril

PVN chairman Tran Sy Thanh (C) inspects rocks taken from offshore oil fields operated by PVEP during his working visit to PVEP last week 

PetroVietnam Exploration Production Corporation (PVEP) is in great financial difficulty as its ongoing oil exploration projects have been ineffective, heard a meeting last week between PVEP leadership and the new chairman of Vietnam Oil and Gas Group (PVN).

PVEP, which the first subsidiary of PVN that Tran Sy Thanh had visited since he took up the post of PVN chairman late last year, is the major PVN arm responsible for oil exploration and production.

The corporation is now operating 43 oil exploration projects in Vietnam and nine foreign countries.

Over the past six years, PVEP has beat its production targets set by PVN. The corporation’s total assets are put at VND134 trillion (US$5.9 billion) at present. Its total after-tax profit in 2007-2017 was VND94.7 trillion.

However, the corporation has faced numerous difficulties since September 2014, prompted by the oil price fall, PVEP general director Ngo Huu Hai said. PVEP has suspended several projects and become more careful with new projects, making oil output hard to rise. 

In addition to the oilfields that have become exhausted after many years of extraction, most of the recently discovered fields have small reserves. PVEP and PVN have asked the Government and ministries to amend regulations on financial support for oil exploration, corporate income tax and investment procedures to help PVEP out of the doldrums.

According to a report by PVN, the oil exploration projects that have caused the biggest losses for PVEP include Junin 2 oilfield in Venezuela, blocks 67 and 39 off the coast of Peru, Block SK 305 in Malaysia, M2 Myanmar, Marine XI Congo, and Con Son.

HCMC wants more investment in supporting industries, high tech

Export processing zones (EPZs) and industrial parks (IPs) in HCMC will find ways to attract more investment in supporting industries and high technology, said the HCMC Export Processing and Industrial Zones Authority (HEPZA).

News website Bnews quoted Nguyen Thi Lan Huong of HEPZA as telling reporters last week that HEPZA looks to attract US$900 million in new investments this year, with over 60% of it going to supporting industries and major sectors.

According to Huong, the priorities of HCMC’s EPZs and IPs in the coming years are to restructure industry, improving growth quality and increase the competitiveness of the city’s economy.

Therefore, HEPZA will prioritize investments in major industries which have high scientific and technological content and high added value. They are mechanical engineering, electronics, information technology, pharmaceutical and rubber, and food processing.

HEPZA vice chairman Dao Xuan Duc said the authority will help new enterprises with investment and business registration, infrastructure construction and information updates. Existing enterprises can also get assistance for long-term operation at the city’s EPZs and IPs, he added.

In addition, technical and social infrastructure at EPZs and IPs will be developed to facilitate operations of enterprises and lives of workers.

HEPZA attracted more than US$840 million in fresh capital last year, 168% of the target. As of the end of last year, the city’s EPZs and IPs have 1,495 operational projects whose combined investment capital is some US$10 billion.

Ministry proposes Govt cut VND2.23 trillion public investments

The Ministry of Planning and Investment has proposed the Government slash public investments by more than VND2.23 trillion (around US$98 million) at five ministries and ministerial agencies, and 14 provinces and cities.

The proposal for public investment cuts comes as these entities and localities lagged behind schedule in disbursing preferential foreign loans for their projects last year. Reciprocal capital from the Vietnam side is required for projects funded by foreign aid.

The ministry sent a report on capital for public investment projects sourced from official development assistance (ODA) loans, and other preferential loans to Prime Minister Nguyen Xuan Phuc and the Government Office, news website Dan Tri reports. Late capital disbursements have caused huge opportunity costs.

The ministry suggested a slew of proposals.

The ministry proposed the Government reduce revise down investments sourced from foreign aid by over VND2.23 trillion as the five ministries and ministerial agencies, and 14 local governments failed to meet less than 80% of their 2017 disbursement targets approved by the National Assembly as of mid-December.

They are the Ministries of Culture-Sports-Tourism, Health, and Labor-Invalids-Social Affairs, the Vietnam Academy of Science and Technology, Vietnam Electricity Group, and Dien Bien, Yen Bai, Lao Cai, Hanoi, Vinh Phuc, Ninh Binh, Ha Tinh, Quang Tri, Thua Thien-Hue, Phu Yen, Ba Ria-Vung Tau, An Giang, Tra Vinh, and Ca Mau.

If the proposal gets the go-ahead, these ministries, agencies and local governments would have to make detailed reports on capital cuts and make explanations.

The report by the ministry indicates five ministries, agencies and 31 localities have asked for VND5.86 trillion (about US$258 million) in extra capital sourced from foreign aid though they did not meet 80% of their assigned disbursement targets last year.

Amway Vietnam opens second branch in HCMC

Amway Vietnam, a global leader in health and beauty products, has inaugurated its second branch in HCMC as a multi-service facility for its distributors.

The new modern branch at 01 Nguyen Thai Binh Street, Tan Binh District integrates multiple services to provide much-needed support for Amway distributors by holding training courses, taking new distributor registrations and displaying new products. The facility is also expected to bring a whole new experience to both distributors and customers.

Established in 2008, Amway Vietnam, an arm of Amway Corporation which is based in the U.S. state of Michigan and had revenue of US$8.8 billion in 2016, specializes in producing and trading in high-quality health and beauty care products including Nutrilite food supplements, Artistry skincare products, Glister, Santinique and G&H body and health care products, and Amway Home home care products.

In addition to business, Amway has paid much attention to community support activities.

At the inauguration ceremony of its second branch in HCMC on January 20, 2018, the firm coordinated with the Study Encouragement Association of Tan Binh District to award 30 scholarships worth VND1 million each for local students who lead a difficult life but have good academic achievements.

Last year, the company cooperated with localities to organize many study promotion programs.

PM requires State budget investment plans

The Prime Minister has assigned ministries, ministerial agencies, State-owned enterprises and authorities of centrally-governed cities and provinces to draw up investment plans for more than VND372 trillion (US$16.4 billion) from the State budget.

According to news website Vietnamplus, nearly VND80.4 trillion would be allocated to central ministries and agencies and the remaining VND291.7 trillion to centrally-governed cities and provinces.

The Minister of Planning and Investment is in charge of allocating the amount based on the number of projects financed by the State capital in 2018, specific projects assigned to ministries, ministerial agencies, State-owned corporations and localities, and payments for outstanding debts, among others. The ministry will take full responsibility for the capital allocation.

Transport Ministry disburses VND60.7 trillion for infrastructure projects in 2017

The Transport Ministry injected more than VND60.7 trillion (US$2.6 billion) into its transport infrastructure projects last year, meeting 94% of the full-year target, heard a review conference last week.

State budget disbursements amounted to over VND29.5 trillion, 93.5% of the ministry’s target.

More than VND22.6 trillion in foreign direct investments and around VND4.3 trillion in reciprocal money were spent on projects, 91.7% and 99.5% of the estimates respectively.

Proceeds from government bond sales which were allocated to transport infrastructure projects totaled over VND5.7 trillion, representing 78.5% of the target.

The ministry fulfilled its target for disbursing non-State capital of VND20 trillion.

According to the ministry, some projects were grappling with site clearance and legal procedures, and projects funded by G-bond issues were assigned to the ministry late. For these reasons, the ministry could not disburse all of its allocated capital.

Meanwhile, the ministry completed final accounts of 113 State-financed projects worth over VND65 trillion, 3% above its target.

The Government is expected to allocate around VND31.2 trillion to the Transport Ministry for disbursement this year. The amount includes over VND21.2 trillion from the State budget, and the remainder from other sources.

UpCycling plans river waste treatment facility in Can Tho

UpCycling Vietnam Co Ltd, a unit of Dutch firm UpCycling Plastic B.V., has plans to pilot a project to collect and treat waste from rivers in Can Tho City, heard a conference in the city on January 22.

Speaking at the conference on how to free rivers from plastic waste in Vietnam and build a park on a river to collect and recycle plastic waste, Sabine Voermans from HZ University of Applied Sciences of the Netherlands said UpCycling has surveyed five locations and chosen one on Cai Khe Canal in Ninh Kieu District, Can Tho to develop the project.

According to Voermans, the site has medium water flow, little river traffic and a semi-circle bend that can make waste collection more effective.

Vietnam is one of the countries that discharge the largest amount of waste in the world, thus causing serious environmental pollution and negatively affecting people’s health, she said.

UpCycling’s project, which would be financed by the Government of the Netherlands, will help turn Can Tho into a cleaner and greener city, reduce environmental pollution by collecting plastic waste from rivers, and raise public awareness of garbage collection and classification in the city and the Mekong Delta as a whole.

The project will not be able to collect all garbage from rivers in the Mekong Delta but will contribute significantly to reducing environmental pollution, according to Voermans.

Nguyen Chi Kien, deputy director of the Department of Natural Resources and Environment of Can Tho City, said the city discharged some 930 tons of household solid waste a day in 2016, with 83.6% of it biodegradable waste, 8.7% plastic and rubbery waste and 0.3% toxic waste. Meanwhile, the city can collect and treat 650 tons of waste a day.

Nhan Co alumina plant likely to recover capital by 2020

Nhan Co alumina plant in Dak Nong Province is operating effectively and could recover its initial investment cost by 2019 or 2020, heard a working session between the investor and a ministerial inspection team. 

The team, led by Minister of Natural Resources and Environment Tran Hong Ha, on January 20 inspected the facility developed by Dak Nong-TKV Aluminum Company, a unit of Vietnam National Coal and Mineral Industries Group (Vinacomin), news website Vietnamplus reports.

After visiting the mining site and sludge tank of the plant, the minister had a working session with leaders of Dak Nong-TKV Aluminum and Vinacomin, and local authorities over the plant’s operation, land management and environmental protection.

Work on the plant began in June 2007 and it was put into production in early July 2017. It produced 501,000 tons of alumina last year, 104% of the target and 77% of the designed capacity. It is expected to turn out 580,000 tons this year and 650,000 tons in 2019.

Its products have been exported to China, India, Japan, South Korea and the United Arab Emirates, with revenues amounting to nearly VND4 trillion (US$176 million). The factory has paid more than VND240 billion in taxes.

At the meeting, leaders of Dak Nong Province and Vinacomin pointed out some difficulties in the process of preventing environmental pollution and protecting natural resources. They proposed using advanced technology for waste treatment and growing plants in some parts of the project site.

Minister Tran Hong Ha spoke highly of the plant’s achievements and its contribution to the Central Highlands’ socio-economic development and security.

Dak Nong-TKV Aluminum should upgrade the production lines and waste treatment system, he said, adding the ministry will support the company to improve the plant’s performance in the coming time.

EuroCham: Online IPR infringements still widespread in Vietnam

Online intellectual property rights (IPR) infringements have not been effectively tackled in Vietnam due to the weak legal framework against violations, heard a meeting in Hanoi on January 22.

At the dialogue meeting on mechanisms, policies and administrative procedures related to business operation and activities of European firms in Vietnam, Nga Nguyen, who chairs the IPR Sector Committee of the European Chamber of Commerce in Vietnam (EuroCham), spoke highly of Vietnam’s efforts to deal with IPR infringements. However, the battle against online IPR infringements has shown little impact given the fast-growing online environment. 

Competent authorities have had a hard time detecting complicated online IPR infringements, Nguyen said.

Authorities mainly use administrative measures to prevent IPR violations. However, they are not strong enough to cope with these breaches. Therefore, Vietnam should increase administrative fines against individuals and organizations violating IPR.

EuroCham proposed courts and the Ministry of Public Security be equipped with modern tools to effectively fight IPR violations.

Another measure is to raise public awareness on the consequences of counterfeiting. People should see the use of unauthorized products as a violation of moral rules.

According to EuroCham’s White Book 2017, Vietnam ranks 13th globally in the number of internet users, with internet penetration reaching 52% of the population. E-commerce is booming and expected to generate US$10 billion in revenue in 2020.

As the number of internet users continues to grow, infringements in the online environment are on the rise while the country’s IPR enforcement remains haphazard.

The Law on Intellectual Property, which was issued in 2005, is now outdated and makes IPR enforcement on the online environment difficult. Therefore, the law and its guidance documents should be amended soon.

Fee exemption for online enterprise registration

The Ministry of Finance has issued Circular No.130/2017/TT-BTC on amending and supplementing some articles of Circular No. 215/2016/TT-BTC on amounts, collection, payment, management and use of fees for providing information about enterprises, charges for enterprise registration.

Changes in business information due to changes in administrative locations will be exempted from fees and charges for business registration and for publishing the business registration information. 

Business registering for dissolution of enterprises and stopping operation, ending operation of representative branches, offices and business locations will enjoy exemption on fees for business registration. 

Business realizing online enterprise registration or State agencies asking for providing information for State management activities are exempted from charges for publishing the business registration information. 

Small and medium-sized Enterprises (SMEs) converted from household businesses will be exempted from fees and charges for business registration and for publishing the business registration information.

Charge of enterprise establishment registration, change of enterprise registration content and re-issuance of enterprise registration certificate is VND100,000 per time. 

Charge of registration for new issuance, re-issuance and change of the content in the Certificate of operation registration of representative branches, offices and business location is VND50,000 per file. 

Circular on credit card limit issued

The State Bank of Viet Nam issued Circular No. 26/2017/TT-NHNN amending and supplementing a number of articles of Circular No.19/2016/TT-NHNN dated June 30, 2016 stipulating bank card operations.

In case of issuance of credit card with security assets, the credit limit granted to the cardholder is valued at a maximum of VND1 billion.

In case of credit card issuance without security assets, the credit limit granted to a cardholder is VND500 million.

For a withdrawal of foreign currency cash in a foreign country, a card holder can withdraw a maximum amount of cash in foreign currency equivalent to VND30 million per day.

Alive people aged between 15-18 years old who are not with limited capacity for civil conduct are allowed to use debit cards, credit cards or prepaid cards.

For cardholders are organizations: Organizations are legal entities which are established and operated legally in line with the Vietnamese regulations are allowed to use all kinds of cards. 

An Giang speeds up tourism development

According to the Department of Culture, Sport and Tourism of An Giang province, An Giang welcomed around 7.3 million tourists and reached the highest ever turnover of VND3,700 billion in 2017.

An Giang has recently become one of the provinces having a strong tourism growth in the Mekong Delta region.

The provincial government has recognized the potential of its tourism industry, and encouraged investors to continue to invest in the sector.

This is the result of making all needful preparation during the past years by the local authorities, said Vice Chairman of the People’s Committee of An Giang province, Nguyen Thanh Binh.

An Giang has boosted investment in building tourism services with hundreds of hotels and more than 50 restaurants, developing cable car system to Cam Mountain, Sam Mountain Cultural Park, Tan Chau pier, as well as completing traffic and transportation system in tourist areas and destinations.

The province has exploited mostly its potentials, such as 100km of the borderline with Cambodia, natural landscapes, historical and cultural sites of Ba Chua Xu Temple, Memorial House of President Ton Duc Thang.

The tourism target is to attract over 10 million visitors by 2020, increasing the average length of stay of 20-30 percent. The province will focus on building a large-scale religious and cultural complex, entertainment areas, shopping malls; and promoting eco-tourism destinations, sightseeing tours in the province and trips through Thailand, Laos, and Vietnam.

Vietnam exports 300,000 tons of steel billets last year

From a country traditionally importing steel billets, Vietnam exported over 300,000 tons in 2017, said Vietnam Steel Association (VSA).

That is an advance, proving the domestic steel industry, reducing dependence on import materials and gradually seizing control of input materials for steel making.

Steel production from VSA members reached 21.06 million tons, up 24.3 percent over 2016. Of these, domestic consumption neared 18 million tons and export hit 3.75 million tons, increasing 20.7 percent and 34 percent respectively.

Structural steel export topped $1 billion, up 62 percent while steel import reduced 14 percent over the same period in 2016.

VSA said that the steel market will maintain the high growth momentum, expected to reach 20-22 percent this year.

Despite the high growth forecast, VSA also anticipates that the steel industry will meet difficulties this year as most materials have depended on import  materials. In addition, businesses have faced trade defense lawsuits to export products.

Stock market has foundations to develop sustainably this year

Positive impacts from state capital divestment and initial public offerings (IPOs) by state own enterprises have strongly attracted capital especially foreign flows to the stock market, creating solid foundations for the market to develop strongly and sustainably this year.

That was said by representatives from State Securities Commission of Vietnam (SSC) and others at a conference to implement stock market development missions yesterday.

According to Ms. Vu Thi Chan Phuong, SSC deputy chairwoman, in early days of 2018, capitalization increased by 10 percent reaching VND3,800 trillion (US$167.33 billion ) equivalent to 77.2 percent Gross Domestic Product (GDP).

Liquidity averaged VND9.6 trillion ($422.68 billion) a session, up 90 percent over the average level in 2017 and 46 percent over the fourth quarter of the year.

In 2017, capitalization reached VND3,500 trillion, surging 80.5 percent compared to 2016 equivalent to VND70.2 percent of the year’s GDP. The market liquidity was up 66 percent from VND3 trillion a session in 2016 to VND5 trillion a session in 2017.

The VN-Index and HNX-Index raised 48 percent and 46 percent respectively, the highest rates for the last ten years.

The derivatives market coming into operation on August 10, 2017 posted a growth in contract volume, transaction value and account number. The portfolio value by foreign investors reached US$32.9 billion by the end of December, up 90 percent over 2016. This proves the attraction of the Vietnamese stock market and foreign investors’ interest in the market.

Investment operations by foreign investors strongly increased. By the end of the year, they posted net purchase values in all exchanges with the total of VND46.7 trillion including VND28 trillion stocks, fund certificates and VND18.7 trillion bonds.

They were also net buyers in all sessions in January this year with the net purchase value of VND7.2 trillion.

However, Ms. Phuong said that many stocks have seen price increase faster than profit growth for the last past and that has hiked the valuation of the stock market.

Although the price/earnings ratio (PE) of the Vietnamese stock market in the HCMC Stock Exchange was 23.24 times lower than Indonesia and 23.1 lower than the Philippines by the end of last year but it still went up 17 percent over 2016 or 19.26 times.

Mr. Nguyen Duy Hung, chairman cum director general of Saigon Securities Incorporation, said that the stock market has well developed thanks to the Government’s viewpoint of not mobilizing resources but giving policy orientations for other economic sectors to do so; creating healthiness, efficiency and well developed economy. The belief of investors in the stock market last year and early this year was very good, he said.

In addition, SSC’s crackdown on violations in the stock market, for instance it has revoked the work permit of an audit company’s director general and issued heavy penalty to an individual investor for seeking profit in the market. These moves have increased the belief of investors and investment amount in the market.

The importance in 2018 is to continue keeping the investors’ belief so that the stock market will remain to be a channel to mobilize capital and keep assets for investors. Foreign investors have expected the upgrading of the Vietnamese stock market.

Chairman of SSC Tran Van Dung said that the commission has established a group to continue pursuing the upgrading and report the progress monthly. The upgrading will increase the market’s scope and liquidity.

The key solution to expand the market scope determined by the commission and the Ministry of Finance is to intensify equitization and listing in the stock market of state own enterprises.

Mr. Tran Thanh Tan, chairman of Vietnam Fund Management Club, said that Vietnam now has a big chance to lure capital from domestic and foreign investors with growth opportunities of the Vietnamese economy in the next ten years.

Garment, textile targets $34 billion export turnover

The garment and textile industry has set a target of US$34 billion export turnover in 2018, a year on year increase of 10 percent, said Vietnam Textile and Apparel Association.

Last year, the total export turnover topped $31 billion, up 10.23 percent over the same period in 2016. That was higher than the year plan of $30 billion.

Besides traditional markets such as the US, EU, Japan and South Korea, Vietnam has made efforts to diversify markets and seen breakthroughs in other markets such as China, Russia and Cambodia.

Notably, South Korea has risen to the fourth largest export market of Vietnam with the turnover of $2.7 billion.

In addition the export turnover to China reached $3.2 billion, equal to that to Japan.

Ministry proposes to cut down $98 million foreign capital

The Ministry of Planning and Investment has proposed the Government to cut down over VND2,233 billion (US$98 million) in foreign capital disbursement plan in 2017 for five ministries and 14 localities because of unaffordability.

In a report sent to the Government Office and the Prime Minister recently, the ministry said that the slow disbursement of public investment capital, including budget funds and Vietnam’s loans from foreign organizations, has caused the country loss many opportunities and showed weaknesses in loan management and use.

The five ministries and central agencies include the Ministry of Culture, Sports and Tourism, Vietnam Academy of Science and Technology, Vietnam Electricity, the Ministry of Health and the Ministry of Labor, Invalids and Social Affairs. The 14 provinces comprise Dien Bien, Yen Bai, Lao Cai, Hanoi, Vinh Phuc, Ninh Binh, Ha Tinh, Quang Tri, Hue, Phu Yen, Ba Ria-Vung Tau, An Giang, Tra Vinh and Ca Mau.

According to data synthesized by the ministry, five ministries and 31 provinces are in need of supplementing VND5,863 billion in foreign capital plan in 2017.

EU businesses updated with favourable policies from Vietnam

The relevant ministries, sectors and localities in Vietnam have cut over 5,000 administrative procedures to facilitate small and medium enterprises in entering the market and operating in Vietnam.

The statistics were announced by Minister cum Head of the Government's Office Mai Tien Dung at a dialogue meeting on January 22 to update mechanisms and policies related to the business operations of European enterprises in Vietnam.

Minister Dung said that the event is part of the Government's and the Prime Minister's directions towards reforming mechanisms, policies and administrative procedures in order to help businesses remove barriers concerning their operation, thus cutting the cost and increasing business efficiency.

He emphasised that in order to create favourable conditions for enterprises to do business in Vietnam, the Government has issued decisive directives in directing the management of socio-economic development.

In 2018, the Government requests relevant ministries, sectors and localities to continue focusing on improving the business environment indicators, boosting productivity and competitiveness and striving to put Vietnam on par with the ASEAN-4 group (including Singapore, Malaysia, Thailand and the Philippines) in terms of competitiveness and business environment.

This year Vietnam also targets to reduce and simplify 50% of the specialised inspection procedures, while removing and simplifying 50% of business investment conditions.

At the conference, the EU businesses made recommendations focusing on taxation, intellectual property rights, healthcare, and other legal issues related to trade and foreign investment.

Nicolas Audier, Co-Chairman of the European Chamber of Commerce in Vietnam, expressed his pleasure that the Vietnamese Government has listened to business opinions and made appropriate adjustments.

He hoped that after the dialogue, most of the proposals would be handled by the Vietnamese side in the immediate future or by the end of the year when the Vietnam-EU Free Trade Agreement comes into effect.

Vietnam supports enterprises to participate in circular economy

The Vietnam Business Council for Sustainable Development (VBCSD) has signed an agreement with three foreign-invested enterprises to implement the “Zero Waste to Nature” initiative.

It is part of a programme aimed at supporting enterprises to participate in the circular economy.

The three companies involved in the initiative are Unilever, Coca-Cola and Down Chemical.

Experts have stated that a circular economy will help reduce the risks from the scarcity of resources in the future, address environmental issues and add US$4.5 trillion to global GDP by 2030.

In a circular economy, waste will be regenerated in various forms and reused in the production process instead of being discarded and causing environmental pollution.

VBCSD Secretary General Nguyen Quang Vinh said the “Zero Waste to Nature” initiative aims to address the issues arising from plastic waste and promote sustainable business models.

At the signing ceremony, Unilever Vietnam chairwoman Nguyen Thi Bich Van pledged that all of the company’s plastics packaging will be collected, recycled and reused by 2025.

Meanwhile, Coca-Cola will support the collection and recycling of all plastic bottles of its products sold to the market by 2030, said Sanket Ray, chief executive of Coca-Cola Vietnam.

VSIP Nghe An sets new standards for living and working environments

Vietnam Singapore Industrial Park (VSIP), a leading industrial park and urban developer in Vietnam, pioneers an international-standard living and working environment in the central province of Nghe An.

After two decades of operations in Vietnam, VSIP has made significant strides with several integrated townships and industrial parks nationwide. There are about 757 tenants from 30 countries and territories with a total investment capital of more than $10 billion.

Applying management experience and operation methods from Singapore, VSIP have designed its industrial park projects with modern master planning, full infrastructure facilities, as well as good transport connections. VSIP has launched sustainable initiatives to create a world-class work environment for over 200,000 local and foreign workers. Among them, VSIP Nghe An is built on modern plans that integrate work, live, and play elements for workers and their families.

Up to now, around 210 companies have visited VSIP Nghe An to explore investment opportunities. Among them, 12 companies have committed to be tenants at the park with a total investment capital of VND860 billion ($37.84 million) and rented an area of 12 hectares.

Seven tenants have received land sites for development, while one tenant has just kicked-off operations. Another two companies are developing factories and are slated to commence operations in the first quarter of 2018. All tenants have committed to building international-compliant waste treatment systems with regular and strict inspections.

VSIP Nghe An also focuses on a healthy and clean environment teeming with verdant greenery and a variety of shade trees. The landscape has created a more attractive, pleasing environment compared to other industrial parks.

VSIP Nghe An is located in the eastern gateway of Vinh City, only five kilometres from the city. The park also boasts close proximity to other major infrastructure projects along Vinh-Hung Tay Avenue or National Highway 46A. VSIP Nghe An is also a luxury township with modern design that places emphasis on residents.

Covering an area of 83 hectares in the first phase, the project strikes the perfect balance for those desiring modern conveniences and a fresh lifestyle with a full suite of amenities in harmony with the surrounding nature. In addition to full infrastructure, VISP Nghe An integrated township and commercial complex also delivers a living place for total “work, live, play” environments.

The 2.6ha park was developed by consultants from Malaysia and Singapore with a focus on family. The park is teeming with greenery, water fountains, and has an advanced laser lighting system, playground for children, an outdoor stage, and outdoor exercise equipment. These facilities will provide workers and their families with endless hours of relaxation and myriad family activities. Diverse flora is planted across the complex to bring a fresh atmosphere.

Next to the central park, the shopping mall and food court will cover 8,000 square metres, including 32 two-floor stores for lease for coffee shops, restaurants, and other purposes. Townships and shophouses will be developed in the residential area with a wide range of amenities like 24/7 security system, a club, a swimming pool, as well as a gym and a community room.

VSIP township is slated to be rolled out in the second quarter of 2018. With the launch of the project in Nghe An, local people are expected to experience a top-notch living environment.