Desire for cheap luxury drives counterfeit market in Vietnam

Fake goods ranging from eyewear to handbags are openly available at high-end shopping malls and street-side markets across the country.

Le Thu Trang recently switched from a Gucci bag to a Prada design for a fresh look, but the decision did not put a massive dent in her bank account.

Both of her bags are counterfeits and cost 20 times less than the originals that can be found in the stores of luxury Italian brands.

“I like to carry Gucci and Prada bags, but buying luxury goods is not easy because they're expensive and fashion trends change quickly,” Trang said. “In that respect, fake bags are very appealing. They're nice and quite cheap.”

Trang’s case illustrates a trend among consumers, especially young people in Vietnam, who like buying fake products ranging from eyewear and shoes to garments and handbags. Their desire for cheap luxury has helped counterfeiters thrive in the country. 

On the streets of Hanoi and in some of its glistening air-conditioned malls, countless fake Hermes and Louis Vuitton handbags, Rolex watches and Gucci fashion accessories are openly on sale.

Consumers who want an expensive logo or style can pick up goods for surprisingly cheap prices, even though they know the goods are illegal and might be confiscated by international customs agents who can impose heavy fines.

Wealthy businessmen, savvy importers and even enthusiastic housewives are looking to make a profit from selling fakes from bricks and mortar stores or online, despite efforts to stop intellectual property right infringements.

Retailers are also unconcerned about selling fake goods. “This is a knock-off, but no problem,” a woman said, pointing to a white polo shirt emblazoned with a Louis Vuitton logo.

“Why should I have to worry about the police? I don’t sell drugs. I didn’t steal this shirt,” she said in a store on Hanoi’s Hang Ngang Street. “Lots of people here sell fake goods like me.”

In a nearby handbag store, fake products with Chanel, Gucci and Louis Vuitton logos on them are on sale for US$20-US$50.

“The originals cost thousands of US dollars,” the dealer said, convincing customers that her handbags look like the genuine article. “Same design. Same material. This one is made in China.”

Fake products such as garments, footwear, eyewear, shampoo, body lotions and pharmaceuticals can be found all over Vietnam, from high-end shopping malls to street-side markets.

Most of the knock-offs are smuggled in from China, Phan Hoan Kiem, head of the Market Surveillance Agency in Ho Chi Minh City, said at a recent meeting.

However, some counterfeit products are made in Vietnam. Many households in Lich Dong Village, Thai Binh Province produce glasses and label them with famous international brands such as Ray-Ban, Gucci and Chanel, while Thao Noi Village in Hanoi is notorious for producing fake Chanel, Hermes and Louis Vuitton handbags.

Without drastic measures to combat fake products, Vietnam could become a major counterfeiting center in the future, an official from the Department of the Intellectual Property under the Ministry of Science and Technology warned.

Many handicraft villages that specialize in counterfeit goods have sprung up as farmland disappears as a result of the industrialization and urbanization process, he said.

Vietnam has detected over 44,500 cases related to counterfeiting and piracy since 2014, said Truong Van Ba, a member of National Steering Committee 389, the government's anti-smuggling body.

Experts say Vietnam is not doing enough to stop the trend. Current laws do not impose fines on people who use counterfeit goods, but in many other countries buying and using these products is considered a crime.

Hoang Van Truc, deputy director of the Investigation Bureau of Economic Crimes, said that only one in seven cases related to fake goods is prosecuted, while the rest receive administrative fines.

Truc added that there’s a lack of cooperation between authorities, especially in border provinces, to prevent fake products from entering the local market. Many laws on counterfeiting and piracy overlap, while the current penalties aren’t enough of a deterrent.

In addition, the fight against fake goods is made more difficult by the fact that some products are imported into the local market in the form of spare parts rather than finished products, making it almost impossible for authorities to identify them.

Many enterprises also offer fake items that are 90% genuine, posing another problem for law enforcement officers.

Even anti-counterfeiting stamps, which are used to protect trademarks, are being faked.

The growing taste among local consumers for fake products has contributed to the market’s development in Vietnam, said Phan Thi Viet Thu, vice chairwoman of the Consumer Protection Association in Ho Chi Minh City.

Her association rarely receives complaints about counterfeit products. “If consumers don't say “no” to counterfeit goods, the trade will continue expanding.”

Despite the warning, Trang is still happy with her fake bags. “I'll buy genuine goods when I'm rich. For now, the cheap ones are still my best option.”

Measures sought to develop agriculture in northwestern region

The Ministry of Agriculture and Rural Development (MARD) and the Australian Embassy in Vietnam held a seminar seeking ways to develop agriculture in the northwestern region on November 23 in Hanoi.

MARD Deputy Minister Le Quoc Doanh said that the northwestern region owns rich natural resources and land and diverse climate which are favouable conditions to develop agriculture, forestry and tourism.

However, the region has yet to bring into full play its advantages due to poor infrastructure and craggy terrain. 

He emphasised the need for suitable inter-regional policies and mechanisms to develop the region’s economy sustainably, including issues related to food security, water resources, soil, and climate change.

Australian Ambassador to Vietnam Craig Chittick stated that Vietnam is among the leading countries in poverty reduction. However, the poverty rate remains high in the northwestern region. Therefore, the Australian Government has been making efforts to support the Vietnamese Government in this work.

Australia is designing a gender equality support programme worth AUD34 million (US$25.9 million) to be carried out in Lao Cai and Son La provinces. The four-year programme will help strengthen women’s capacity of improving their livelihoods in agriculture and tourism.

Doanh stressed the necessity to give priority to studying measures to increase product quality and develop forest economy, including forest tourism and wood products to serve processing and export.

Grab driving to break into e-payment sector

After winning a significant foothold in the Vietnamese ride-hailing market, Grab plans to drive further growth by adding new services and branching out into the online payment sector.

Grab co-founder Hooi Ling Tan said that Grab will continue to explore the potential of new services in Vietnam, such as GrabFood and GrabShuttle. Most recently, JustGrab has been launched in Hanoi and Da Nang city, which combines both GrabTaxi and GrabCar in a single feature to provide faster e-hailing services. 

In addition, Grab will expand its range of cashless payment offerings through GrabPay, which is slated to be launched in Vietnam next year. The ride-hailing firm is looking to get licences for GrabPay from the Vietnamese government.

In Southeast Asia, only 1.5% of the local GDP in each country is spent on printing and recirculating cash. It costs money to collect all coins and paper bills to replace them. Also, it costs money for retailers to ensure that there is enough change for daily transactions. All of these problems can be solved by mobile wallet payments, according to Tan.

In fact, Grab has worked in collaboration with several banks in Vietnam, including Shinhan Bank, Techcombank, and Vietcombank. 

The banks aim to access Grab’s customer database to promote credit card services. However, if Grab’s electronic wallet system is green-lighted in early 2018, it will start aggressively implementing GrabPay in Vietnam.

“GrabPay was launched in Singapore just a few weeks ago. We want Vietnam and Southeast Asia to have similar access to online payment technology, like customers in India and China,” she said, noting that cash is the blood of the economy, so Grab will be careful to roll out this project to ensure healthy cash circulation.

The Vietnamese e-payment market is now home to around 20 companies, including MoMo, ZaloPay, and Samsungpay. GrabPay’s foray into Vietnam is projected to warm up the market that has huge potential but is still essentially untapped.

Grab has recently been under the spotlight for its tax payments in Vietnam. However, Tan stated that Grab has been locally registered and fully compliant with local tax policies since its launch in 2014.

The ride-hailing firm currently operates in five cities, providing four different types of services, including GrabTaxi, GrabCar, GrabBike, and GrabExpress. Grab is the first company to pilot e-hailing services in Vietnam.

Construction on cement grinding station begins in Ha Giang

The Manh Binh Minh construction material company held a groundbreaking ceremony on November 23 for a cement grinding station with annual capacity of 700,000 tonnes in the northern mountainous province of Ha Giang.

The facility, worth nearly VND100 billion, is located in Binh Vang Industrial Park, Vi Xuyen district.

It is expected to begin operations in the third quarter of 2018. The technologically advanced station will produce cement in line with national standards while ensuring labour safety and hygiene and environmental protection.

Le Van Ngan, vice head of the provincial Economic Zones Management Board said the station is one of three investment projects in Binh Vang Industrial Park to be licensed this year.

It is expected to create jobs, contribute to the local budget, and meet the province’s demand for cement, Ngan said.

Workshop discusses Belgian support for Vietnam’s agriculture

The Ministry of Agriculture and Rural Development and the Belgian Embassy in Vietnam held a workshop in Hanoi on November 23 to review Vietnam – Belgium farming cooperation

The workshop looked into engagement between the two countries’ governments, universities, institutions, and businesses. Discussion revolved around food safety regulations, climate change impacts, and sustainable agriculture in Vietnam. 

Deputy Minister of Agriculture and Rural Development Le Quoc Doanh stressed Belgium is an important partner of Vietnam, providing assistance in the management of water resources and sanitation.

The sides have held regular information exchanges on food safety to facilitate bilateral trade of farm produce, he added.

The official suggested Belgium introduce advanced technologies and modern management methods to Vietnam, helping the country restructure its agricultural sector to adapt to climate change.

Dirk Achten, Secretary General of Belgium’s Federal Public Service Foreign Affairs, said Vietnam is a strong partner of his country.

He stated Belgium will continue its support for Vietnam via more joint projects between the two countries’ non-governmental organisations, universities and private companies.

Vietnam urged to strengthen land, copyright laws

Vietnam should strengthen land and copyright laws to give enterprises more flexibility and to enhance asset security, experts said at an award ceremony in Hanoi on November 23 for the country’s 500 most profitable firms.

According to the announcement of the Vietnam Earnings Insight 2017 report at the ceremony, Vietnam’s business environment has been favourable, with access to capital, tax system and inflation control improving in the first three quarters of the year.

The research conducted by Vietnam Report Company on the Profit 500 Ranking List showed that more than 90% of firms rated the business environment as good or very good.

The issues that businesses still face are land access, skilled labour supply and infrastructure.

“The great challenges for Vietnamese businesses are asset security, property rights and anti-trust,” the report said.

Besides, under the circumstance that the increasing number of new entrants and foreign competitors has entered the domestic market, the market share of large firms could decline unless they reach new customers on the world market.

The Vietnam Earnings Insight 2017 report also collected opinions from experts saying that the country’s securities market experienced better performance than ever, with a growth rate of 26.4% in the first 10 months of the year. It helped the overall portfolio value of investors expand at the most significant rate in the past six years.

Therefore, the performance in the Vietnamese market is more attractive than that of the Philippines at a similar level of capitalisation and turnover, and significantly more attractive than Thailand as Thailand’s economic growth has been gloomy recently, the report said.

The country’s stable macro-economy, better monetary policies and favourable investment environment, together with the growth of the middle-class, would enhance return on investment (ROI) and return on equity (ROE), which would be pre-conditions for further growth.

The Profit 500 ranking aims to honour Vietnamese firms with high profitability and potential to become key pillars for the country’s future development. These firms have also contributed to promoting Vietnam’s brand name in the international business community.

Viettel Group topped the list of Vietnam’s most profitable firms, followed by Samsung Electronics Vietnam Co Ltd, Vietnam Oil and Gas Group (PetroVietnam), Vietnam Dairy Products Joint Stock Company (Vinamilk), and PetroVietnam Gas Joint Stock Corporation.

Also on the list are Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), Truong Hai Auto Corporation, Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and Hoa Phat Group. 

The Vietnam Report Company conducted independent assessments based on the criteria of return on total assets, return on equity, return on revenue, pre-tax profit and revenue. In addition, it also determined businesses’ reputation in the media.

Indian textile and garment companies looking for opportunities in Vietnam

Indian companies are looking to cement ties with Vietnamese counterparts in the textile and garment sector.

A business to business meeting between Vietnamese and Indian companies took place recently in Ho Chi Minh City.

Shailesh Martis—director of Cotton Textiles Export Promotion Council of India— said that Vietnam has emerged as a leading global exporter of garments and is constantly on the look-out for high-quality cotton textiles, including cotton yarn and fabrics. The Vietnamese textile and clothing industry has set an ambitious yet attainable export target of $30.5 billion for 2017.

“Vietnamese importers are therefore keen on looking at alternative sources for raw materials. The Indian exporters of cotton textiles are eager to meet any gap within the Vietnamese cotton textile supply chain,” he said.

According to K. Srikar Reddy, Consul General of India, there is huge trade potential in the area of textiles and garments between the two countries. The Indian textile industry has developed a complete product supply chain. The country is also one of the primary suppliers of high-quality materials and fabrics at competitive prices in the world.

“As Vietnam is looking to diversify its material suppliers in the textile segment, this offers a great opportunity for mutually beneficial co-operation between Indian and Vietnamese enterprises,” he said, noting that enhancing bilateral economic engagement is a strategic objective and textile and garments has been identified as a priority sector for co-operation.

The delegation of nine Indian companies has also attended the 17th Vietnam International Textile & Garment Industry Exhibition from November 22-25 at Saigon Exhibition & Convention Centre in Ho Chi Minh City. The delegation showcased cotton, high-quality woven, knitted, and denim fabrics, as well as home textiles.

Beside Indian companies, the expo also features 400 exhibitors from 14 countries and regions. The strong presence of foreign exhibitors underscores the high internationalisation of this mega event as well as the attractiveness of the Vietnamese textile and garments sector.

Despite US' withdraw from the Trans-Pacific Partnership (TPP), international investors have remained optimistic about Vietnam’s market potential on the back of the country’s stable economic growth. 

According to the latest statistics released by the Ministry of Planning and Investment's Foreign Investment Agency, the Vietnamese textile and garments sector scored $14.58 billion in outbound shipments in the first six months of 2017, representing a significant annual increase of 11.3 per cent.

Fitch forecasts high economic growth rate for Vietnam

Vietnam will be one of the ASEAN countries to achieve a high economic growth rate in the years to come, according to a recently-released report by Fitch,a credit rating agency which is dual-headquartered in New York and and London.

Fitch said Vietnam’s growth will be supported by a stable political environment, growing reform momentum, an improving business environment, and the manufacturing sector benefiting from multinational companies relocating in Vietnam for lower production costs.

Fitch predicted that Myanmar is also one of the growth-out performers in ASEAN, whose economic prospects look bright thanks to greater regional integration, better transport connectivity, and continued reform momentum.

Wooden product exporters regain growth momentum

Exporters of wooden products regained double-digit growth in the first ten months of 2017 after a growth rate of a slight 1.1% last year, said Huynh Van Hanh, vice chairman of the HCMC Handicraft and Wood Industry Association (HAWA).

At the Vietnam International Furniture and Home Accessories Fair 2017 (VIFA Home 2017) which kicked off at Phu Tho Indoor Stadium in HCM City recently, Hanh said the high growth rate might be maintained in the final two months of the year.

In January-October, Vietnam exported US$6.21 billion worth of wood and wooden goods, up 11.2% year-on-year, according to the General Department of Vietnam Customs.

Local wood enterprises will boost their exports in the rest of the year, so the sector’s export revenue may reach US$8 billion this year, an increase of 14% over last year.

Vietnamese wooden goods’ quality and designs are highly valued. The country mainly shipped the products to the U.S. (US$2.66 billion), China (US$873 million) and Japan (US$850 million) in the ten-month period.

Many firms have opened new factories and invested heavily in advanced technology to improve their production capacity. They have also employed designers to create new products to increase products’ value.

Vietnam annually spends only US$68 million importing wooden goods, mainly from China.

Domestic wood enterprises have improved their products’ quality and designs, and offered good after-sale services and other services to satisfy customers.

Local demand for wooden products grows by 5-6% a year and most of the products are used in high-end hotels and resorts.

Second EuroCham Central Vietnam Business Forum successfully hosted in Danang

On November 24, European Chamber of Commerce in Vietnam (EuroCham), in collaboration with EU-Vietnam Business Network (EVBN), hosted EuroCham Central Vietnam Business Forum (ECV Business Forum) 2017 in Danang. This is the second time this event has been organised in the city.

More than 70 participants from a multitude of sectors gathered at the event, including economists, governmental officials, media organisations, and diplomats. The forum was co-sponsored by Savills Vietnam, NS Blue Scope, and Green Shoots International School, with support from KPMG.

At the event, experts and officials covered cross-cutting business topics from a site-specific perspective, including investment practices, tax incentives, local talent management, real estate development, green building, and smart cities.

Aymar de Liedekerke Beaufort, CCO of BNP Paribas Vietnam and EuroCham Executive Committee Member, opened the event and officially launched EuroCham’s new project, the Greenbook and the Greenbook website (www.greenbookvietnam.com). The two platforms aim to be the ultimate portal on green business in Vietnam.

After Aymar’s opening remark, Phuc Nguyen, director at KPMG, delivered content related to the economic outlook for Central Vietnam, as well as tax incentives for businesses and investors in the area.

Also at the forum, EuroCham announced three representatives of EuroCham in Central Vietnam for the tenure of 2018. These representatives will be responsible for co-ordinating activities in the region.

Gellert Horvath, co-chairman of EuroCham, highlighted “Outside of Ho Chi Minh City and Hanoi, Danang and with it Central Vietnam are a leading trade and investment destination for European businesses. What we have heard from our nearly 50 members doing business in the region is that they are very satisfied with their growth and they are here to stay. EuroCham realised this promising outlook and the potential of Central Vietnam when we became the first large foreign chamber of commerce to launch a representation in Danang in November 2016. We are certain that areas such as ICT, tourism and hospitality, infrastructure, green technology—namely renewable energy and sustainable building—and education will remain strong here in the coming years.”

“ECV Business Forum is a good example of how companies with an interest in important projects can ask questions directly from the investment authorities in cities and provinces, while also being able to establish contacts for future partnerships. I am happy with the success of this event, and I am certain that it will continue to grow every year,” he said.

“Since our Danang office was opened in 2015, we have made significant progress in regional trade promotion activities, such as participation in the APEC’s side-lines events, investor relations, and working with local partners in promoting the investment environment in Central Vietnam at events and in publications," Phuc Nguyen, partner of KPMG Vietnam, said. 

"Over the years, we quickly recognised that EuroCham Central Vietnam Chapter’s initiative to assist in the region’s socioeconomic development is a perfect fit to KPMG’s strategy and core values. We will work shoulder-to-shoulder with EuroCham, its members, and the provincial authorities of Danang, Quang Nam, and the surrounding areas, to make the initiative a great success”, said Mr Phuc Nguyen.

Vietnam’s real estate tycoon catapulted into world's 500 richest list

Pham Nhat Vuong has become the first Vietnamese to crack the list of the world's 500 wealthiest people.

Vietnam's richest man Pham Nhat Vuong has become the first Vietnamese to crack the list of the world's 500 wealthiest people as increased asset value shot him to the world's 489th-richest person in just a matter of four days.

Vuong is currently worth around $4.2 billion, almost twice the value from March this year, according to the real time billionaires list updated by Forbes magazine on November 25 morning.

Just on November 21, Vuong, 49, was the 543rd richest man in the world, which was already up 97 positions in less than a fortnight.

The owner of Vietnam’s real estate conglomerate Vingroup is now richer than the Italian media mogul and former prime minister Silvio Berlusconi, who ranks 502.

His rise came following the IPO of Vingroup’s retail unit Vincom early this month, which was hailed as the biggest IPO debut ever in the country after raising nearly $709 million and valuing the mall operator at around $3.4 billion.

Vingroup’s shares have also gained almost twice in the past six months, closing at VND74,500 ($3.28) on November 21.

According to Vingroup’s first-half report, Vuong was directly holding 27.45 percent stake in the group.

He also owns 93 percent of the Hanoi-based Vietnam Investment Group JSC, which holds a 33.37 percent stake of Vingroup.

Vingroup is one of Vietnam’s largest real estate conglomerates, and has been expanding rapidly into retail, logistics, agriculture, education and healthcare. As of the end of September, its subsidiary Vincom Retail was managing, operating and renting 41 shopping malls with a total area of over 1.1 million square meters (272 acres). It also has 22 projects under construction and another 50 in early development.

The Forbes list updates on November 25 also saw the rise of Nguyen Thi Phuong Thao, owner of Vietnamese budget carrier Vietjet, from position 1,177 on November 21 to 1,131, with assets worth $2.1 billion.

At the top of the list are Amazon’s founder Jeff Bezos with a net worth of $99.6 billion, followed by Microsoft co-founder Bill Gates with $89.4 billion and Warren Buffet with $78.6 billion.

Vietnam, Slovakia promote trade, investment cooperation

The Vietnamese Ministry of Industry and Trade (MoIT) and the Ministry of Economy of Slovakia should increase cooperative activities and delegation exchanges to enhance trade and investment collaboration between the two countries, said a senior official.

vietnam, slovakia promote trade, investment cooperation hinh 0 Vietnamese Minister of the Industry and Trade Tran Tuan Anh made the remark while holding a reception for Slovakian Minister of Economy Peter Ziga in Ho Chi Minh City on November 25.

The robust development in bilateral ties have opened up opportunities and potentials for the two countries to step up cooperative activities for mutual benefits in economy, trade and investment, Anh said, adding that although two-way trade revenue has increased through years, it still lags behind expectations of both sides.

He underlined that Vietnamese and Slovakian enterprises are still holding great potentials to cooperate in the fields of information and technology, mining, electronics, manufacturing technology and tourism.

For his part, Ziga affirmed that Slovakia always cherishes ties with Vietnam and sees the country as a leading partner in Asia, expressing his hope that both sides will reach positive agreements during his visit, making cooperation programmes in economy and trade more effective.

He suggested that the two ministries should organise more business forums as well as trade and investment promotion conferences while asked leaders of the MoIT to support Slovakian enterprises to study the Vietnamese market.

In the past years, Vietnam and Slovakia enjoy a stable increase in two-way trade revenue. Vietnam mainly exported footwear, garments and seafood and imported machines, tools and steel spare parts from the European country.

By the end of October 2017, Slovakia had nine investment projects worth US$250 million in Vietnam, ranking 36th out of 128 countries and territories investing in Vietnam. Meanwhile, Vietnamese IT company FPT has one investment project valued at nearly 500,000 USD in Slovakia.

HCM City looks to stronger trade, investment links with Slovakia

Chairman of the People’s Committee of Ho Chi Minh City Nguyen Thanh Phong on November 25 hosted a reception for Peter Pellegrini, Slovakian Deputy Prime Minister for Investments and Informatization.

Phong highlighted Pellegrini’s visit  from November 25-29 as a contribution to reinforcing the traditional cooperation between the two countries, in  particular between HCM City and Slovakian localities.

He told his guest that HCM City will offer the best possible conditions for Slovakian businesses to boost trade, investment cooperation and run long-term business in fields of the city's high demand such as chemical industry, smart solutions, sustainable development, food industry and health.

He asked the Slovakian Deputy PM to encourage Slovakian companies to augment trade and investment cooperation with Vietnam and HCM City as well, aiming to spur the sustainable development of bilateral relations between Vietnam and Slovakia.

Pellegrini said Vietnam and Slovakia, as well as HCM City and Slovakian localities boast great potentials to step up cooperation, especially in economy, trade and investment.

He thanked the city for its support for the construction of a Vietnam-Slovakia friendship building, a symbol for the two countries’ sound traditional friendship, and also urged he city’s businesses to explore Slovakia’s investment climate as Slovakia is severed as a gateway to make it easier to enter the European market.

Conference seeks ways for Italian products to enter Vietnam

Vietnamese consumption trend, potential customers and competitive capacity of Italian businesses were discussed at a conference held in Turin, the capital city of the Piedmont region in northwest Italy on November 24.

The event provided crucial information for Italian firms who are interested in the Vietnamese market and especially those are exporting agricultural products and food which are strengths of the Piedmont region.

Vietnamese Ambassador to Italy Cao Chinh Thien updated participants on the latest information about the Vietnamese market while appraised efforts made by the Italy-Vietnam Trade Chamber in promoting trade and investment between the two countries.

According to Walter Cavrenghi, General Secretary of the Italy-Vietnam Trade Chamber, a delegation of businesses from Piedmont will study and seek investment opportunities in Vietnam in March 2018.

Talking with the Vietnam News Agency’s correspondent, President of the Chamber Fulvio Albano said that his organisation will continue to sustainably enhance trade and investment between businesses from Italy and Vietnam.

On the occasion, the Vietnamese ambassador visited some agricultural production establishments in the Piedmont region.

The same day, Thien worked with leaders of the Italian Social Security Administration in Piedmont. They agreed that Vietnam and Italy can share experience in social insurance management.

He lauded the administration’s initiative to organise a meeting to popularise information about insurance’s benefits, responsibilities and regulations among Vietnamese people working and studying in the locality.

Transport sector speeds up for fourth industrial revolution

The fourth industrial revolution will have a profound impact on every country, industry and business, and the transport sector is no different.

The Ministry of Transport organised a meeting on the opportunities and challenges the fourth industrial revolution posed for the transport sector in Hanoi on November 24.

According to Tran Quang Ha, Deputy Director of the Science and Technology Department under the Ministry of Transport, said that the country’s transport industry had experienced the second and third industrial revolutions, and would now embrace the fourth.

Specifically, the industry has set up high speed road systems and applied information technology and Internet connections in providing transport services such as ticket booking and check-in and automatic charge collection, he said.

The appearance of Internet-based transport services such as Uber and Grab and the provision of public services via the Internet are strongly influenced by this revolution, he noted.

"However, due to the lack of resources and an overall information technology application model, applications are just being developed on a narrow scale, without having formed a common and shared database for the whole sector," Ha said.

The deputy director also said that the fourth industrial revolution could help save labour through technology, however, it could also affect workers by cutting job opportunities for cheap labour and change the mode of production through apps like Uber and Grab.

Nguyen Ngọc Dong, Deputy Minister of Transport, noted that the beginning of the technology revolution would certainly affect the Vietnamese economy in general and the transportation sector in particular.

“Therefore, we must analyse and evaluate in order to manage the industry to keep up with global development,” he emphasised.

In the future, the deputy minister said that there would be reviews and updates to supplement and amend regulations for management in line with actual requirements.

The effects of data digitisation and big data storage require the industry to review strategies and planning to make timely adjustments, creating opportunities to leapfrog in the direction of development, he said.

"We also need to research new technology applications, digital technology, information sharing, artificial intelligence and robots to improve operational capacity. At the same time, agencies also need to be proactive in sharing information to serve the work of management and operations," he said.

Dong also emphasised the preparation of human resources. "The urgent need is to prepare and direct skills training and update knowledge," he added.

Vietnam’s images, potentials spotlighted in Romania

Vietnam’s achievements in economy, politics and foreign affairs as well as the country’s beauty and people were featured through a photo exhibition and a seminar recently held in Bucharest, Romania.

Vietnam’s achievements in economy, politics and foreign affairs as well as the country’s beauty and people were featured at the seminar.

The event was organised by the Centre for Indochina Studies under the Bucharest Academy of Economic Studies in collaboration with the Vietnamese Embassy in Romania.

Introducing the country’s brilliant successes in various fields after over 30 years of Doi Moi (reform), Vietnamese Ambassador to Romania Tran Thanh Cong highlighted that these achievements have elevated Vietnam’s economic and politic position on the international arena.

The successful hosting of the APEC 2017 Economic Leaders’ Week is a clear proof for the country’s deep integration into the regional and global economy, he stressed.

Regarding Vietnam-Romania relations, Cong affirmed that both sides have considerable potentials, advantages and opportunities to boost cooperative ties, especially in economy.

Maritime economy is billed as a key strength of Vietnam with important sea routes through the East Sea, which help promote trade exchanges with foreign countries, including Romania, he said 

The ambassador affirmed that Vietnam always creates favourable conditions for Romanian investors.

Romanian experts spoke highly of Vietnam’s political stability and economic achievements as well as its role in the Asia-Pacific region and international forums.

Investment opportunities in Vietnam for Romanian investors were on the table as well. Participants said that the opportunities mostly come from Vietnam’s preferential policies and traditional relationship between the two countries.

Vietnam promotes Vietnamese brands in RoK

Vietnam-Republic of Korea trade ties are flourishing with trade revenue growing from US$500 million in 1992 to US$45 billion in September this year. But the number of Vietnamese brands in Korea remains small.

Trung Nguyen coffee is the only Vietnamese product widely distributed in the Republic of Korea. Other brands like Trung Thanh chili sauce and Nam Ngu fish sauce are only sold here and there in smaller shops.

Do Kim Lang, Deputy Director of the Trade Promotion Department of the Ministry of Industry and Trade, said Vietnam has 90 enterprises recognized as national brands. But they still pay little attention to promoting their brands globally. Most Vietnamese businesses are small and medium-sized businesses that export products with little added value.

Le An Hai, Deputy Director of the Asian–African Market Department, urged Vietnamese businesses to learn Korean food safety, product quality, and trademark registration in order to secure a firm foothold in the Korean market.

Hai said “We have to export our products through Korean distributors, who have their own standards and requirements in design and packing. Securing a market share in the Korean market depends on the competence of each company.”

Pham Duy Khuong, Director of SB Law, a law firm specializing in intellectual property, said “Domestic enterprises should increase their market study and professional evaluation. We need legal experts who will help us check and verify legal issues with our trading partners and whether our trademark and packing meets the host country’s standards.”

Vietjet to open Da Lat - Bangkok route in mid-December

Budget carrier Vietjet will launch a new air route connecting Da Lat with Bangkok in mid-December, becoming the first airline to operate a direct service between Da Lat and Bangkok.

The airline announced on November 24 that the new route will commence on December 18, 2017, in the wake of Da Lat Flower Festival 2017, and will be operated by an Airbus A320 with four return flights per week, every Monday, Wednesday, Friday and Sunday.

The flight will depart from Bangkok at 10:30am and return from Da Lat at 12:55am, with a flight duration of one hour and 45 minutes.

“To further contribute to the tourism growth of Vietnam and Thailand, Vietjet is pleased to announce the new international route from Vietnam’s central highland city of Da Lat to Bangkok. The new service will be launched just prior the Da Lat Flower Festival and I am delighted that people from the two countries can now travel more conveniently in order to enjoy their neighbouring country’s scenery through our ever expanding flight network,” said Nguyen Thi Thuy Binh, Vice President of Vietjet.

Following the launch of the Da Lat - Bangkok route, Vietjet and Thai Vietjet will operate a total of six direct routes between Vietnam and Thailand, including Bangkok to Hanoi, Hai Phong, Ho Chi Minh City and Da Lat, and from Ho Chi Minh City to Phuket and Chiang Mai.

Vietjet has a fleet of 45 aircraft, including A320s and A321s, and operates 350 flights per day. It has already opened 73 routes in Vietnam and across the region, to international destinations such as Thailand, Singapore, South Korea, Taiwan, Hong Kong, Mainland China, Malaysia, Indonesia, Myanmar and Cambodia, among others.

Scientists, businesses sign deals worth $10m at TechDemo event

Twelve technology transfer contracts worth more than US$10 million have been signed among scientific application centres nationwide and foreign partners at the technology demonstration and connection conference (TechDemo) in Đà Nẵng, the Department for Technology and Science Application and Promotion under the Ministry of Science and Technology said.

The conference, which opened in the central city on Thursday, has drawn more than 300 participants from Việt Nam, Russia, Japan, South Korea, Thailand, Australia, the US, Israel, the Asia Development Bank (ADB), and the Mekong Business Initiative.

Contracts in bio-technology, agriculture, hi-tech farming, waste treatment were also signed by scientific application centres nationwide worth more than VNĐ200 billion ($8.8million).

The Japan Association of Science Research (GBT) also signed an agreement with Việt Nam Fetiliser and Service Company in bio charcoal and wood vinegar production, and waste treatment and plant protection with total value of $1 million.

Also on the occasion, ADB and the department agreed a deal on innovation, technology transfer and promotion of technology in the private sector.

More than 500 technological products and 1,800 sources of technology are being displayed at the city’s Tuyên Sơn Sports Centre from yesterday and until Friday.

Seminars on radioactive technology, science and technological co-operation and investment, renewable energy development, waste treatment and ‘green’ growth are set to be held at the event.

The event links local scientists and foreigners to share experience and update technology in different fields of heath care, industries, agriculture and environment.

The latest report from the department revealed that nearly 4,000 technology transfer contracts had been signed nationwide between 2011-16, while 130 technological agreements worth $30 million were reached during the period.

Việt Nam’s use of radioactive technology created huge growth in agriculture, medicine, oil and gas production and other industries.

According to the ministry of science and technology, the country has earned $3 billion in revenue from rice production using high-growth genetically modified varieties in the Mekong (Cửu Long) Delta River since 1990.

More than 50 genetically modified varieties of rice and plants are grown on 50 per cent of the country’s farm area, 30 per cent of which was exportable rice grown on one million hectares of the Mekong Delta, a source from the ministry said. 

VN-Index concludes winning week

Shares concluded a winning week on the HCM Stock Exchange with the benchmark VN-Index adding 0.2 percent to close at 935.57 points on November 24.

Large-cap stocks continue to provide energy for the market’s upward trend: 18 of the top 30 largest shares by market value and liquidity here advanced and only nine declined.

Leading gainers included food and beverage companies, such as brewer Sabeco (SAB) and Habeco (BHN), each rising over 3 percent; confectionery Kido Group (KDC) and sugar maker Thanh Thanh Cong Tay Ninh JSC (SBT), each up 1 percent; Vinamilk (VNM), up 0.1 percent and steelmaker Hoa Phat Group (HPG), up 2.4 percent.

Notably, however, cash flow began to gradually spread to small- and medium-cap stocks.

“Green color dominated the market with the number of increasing stocks doubling that of decreasing ones (187-96), especially in sectors such as real estate (except for VinGroup) and construction, while the picture was more divided in the banking and securities sectors,” BIDV Securities Co (BSC) wrote in a report yesterday.

Refrigeration Electrical Engineering Corp (REE) and Dat Xanh Real Estate Service & Construction Corp (DXG) both hit the daily limit rise of 7 percent, while Hoang Quan Consulting-Trading-Service Real Estate (HQC) rallied 3.5 percent and Hoa Binh Construction Group (HBC) rose 2.3 percent.

Despite the significant drop at the morning trade, VN-Index still increased slightly by the end of the session, which proved that the market maintained momentum, though it was not as strong as before, BSC’s report said.

Big losers included VinGroup (VIC), down 2.6 percent; Vincom Retail (VRE), down 2.7 percent and Vietcombank (VCB) and Vietinbank (CTG), each dropping around 1 percent.

According to Tran Duc Anh, a stock analyst at Bao Viet Securities Company, increasing profit-taking pressure in large-cap stocks triggered a high risk of a short-term correction for these stocks. However, as cash flows into mid-cap and penny stocks, a divergence may still be seen next week.

On the Hanoi Stock Exchange, the HNX-Index rose for a third day, adding 0.59 percent to end at 110.83 points.

A total of over 289 million shares worth a combined 7.3 trillion VND (320.2 million USD) were traded in the market, down 5.3 percent in trading volume but up 10.6 percent in terms of the value of transactions compared to the previous session.

Foreign investors were net sellers on both exchanges, responsible for a combined net value of 117 billion VND. 

Vietnamese agricultural products introduced in Ukraine

Vietnam’s key agricultural products were introduced in Ukraine during the Food Expo 2017 that opened in Kiev on November 23.

The Vietnamese delegation, led by Ambassador to Ukraine Nguyen Anh Tuan, brought to the event traditional farm produce such as rice, coffee, tea, cashew, peppercorn, which have been popular in the Ukrainian market.

Along with seafood, Vietnamese farm produce has been favourite items in Ukraine.

Right on the opening day, the Vietnamese booth drew a large number of visitors and businesses. The Vietnamese delegation also actively engaged in activities on the framework of the expo, including business exchanges and thematic conferences.

Food Expo is an annual even in Kiev, gathering local and foreign enterprises who showcase their food, agricultural products, technology, equipment and farming techniques, and seek partnership and markets.-

Taiwanese firms launch 19-mln-USD production area in Binh Duong

A ground-breaking ceremony for a 19-million-USD production area funded by investors from Taiwan (China) took place in the Bau Bang Industrial Park of southern Binh Duong province on November 24.

The 13-hectare area is invested by four Taiwanese firms – DDK Vietnam, Yi Xing, T-Star and Every Young companies, which are specialised in real estate, factory leasing, industrial infrastructure investment consultation, environmental protection equipment, electricity and aluminum product production.

The construction of the area is considered the start in forming a concentrated production cluster of Taiwanese firms in Binh Duong, with total planned investment of 200 million USD on an area of 80 hectares at the IP.

Addressing the ceremony, Vice Chairman of the Binh Duong People’s Committee Tran Thanh Liem hailed the Taiwanese firms’ investment in the Bau Bang Industrial Park, as well as their contributions to local socio-economic development.

Liem vowed to support and create optimal conditions for the investors during their operation in the locality, while expressing his hope that Binh Duong will continue to be a favourite destination for Taiwanese enterprises.

Statistics showed that Taiwan (China) is the current leading foreign investor in Binh Duong with 772 projects worth over 5.5 billion USD.