The 2018 Food Ingredients Vietnam to be held in HCM City in May will showcase a large variety of food and beverage ingredients and natural ingredients.

The exhibition has attracted more than 140 exhibitors from many countries and territories, Rungphech (Rose) Chitanuwat, business director of UBM Asia, the organiser, said.

The expo would also feature international conferences and professional seminars, and link up businesses, she said.

With more than 93 million people, of whom more than half are under 30 years of age, Việt Nam is one of the most promising food and beverage consumption markets in the region, and has a diverse range of raw materials for food and beverages, she said.

Speaking at a press conference in HCM City on March 22 to introduce the expo, Ly Kim Chi, chairwoman of the Food and Foodstuff Association of HCM City, said the country’s food and beverages sector has enjoyed strong growth in recent years.

The market is expected to maintain its high growth rate in the coming years and rank third in Asia, she said.

But now it has to import more than 80 per cent of its food and beverage ingredients since it is either unable to produce them or ensure consistent quality, she said.

Fi Vietnam would offer a great opportunity for businesses to source ingredients and establish links with the region’s leading producers and distributors, Chitanuwat said.

The exhibition this year would be 50 per cent larger than the preceding one (Fi Vietnam 2016), indicating the attractiveness of Việt Nam’s food and beverage market, she added.

To be held at the Sai Gon Exhibition and Convention Centre from May 16-18, the expo is expected to attract more than 4,700 food and beverage industry professionals from ASEAN member countries. 

Microsoft and IBM dropped out of top 10 Vietnam's best workplaces

Microsoft Vietnam and IBM Vietnam surprisingly got the dropped-ranks in the list of 100 best workplaces in Vietnam in 2017, according to the annual survey of Anphabe JSC in collaboration with market research company Intage.

Specifically, Microsoft Vietnam fell from the fourth rank in 2016 to 17th, while IBM Vietnam went from fifth to 14th.

In contract, the smaller-scale enterprises moved to the lead in the 2017 ranking. Unexpectedly, Vinamilk took over Unilever Vietnam’s leading position, with the runners-up being Viettel Group, Nestlé Vietnam, Vietcombank, Coca-Cola Vietnam, and Samsung Vina Electronics, respectively. These companies improved their rankings significantly over the year.

Viettel rose from the 2016’s seventh place to third place, while Vietcombank moved to the fourth place from sixth. Coca-Cola Vietnam in 2016 was not listed in the top 20, but secured the fifth place in 2017.

The 2016 champion, Unilever Vietnam, did not participate in Anphabe’s annual survey in 2017 and became the partner of the organisation board.

The survey of the top 100 best workplaces in Vietnam was implemented independently, with a rigorous process including in-depth interviews and quantitative-quality surveys, aiming to record salaried employees’ objective opinions.

VTVcab expects to acquire $261 million from IPO

Cable television provider Vietnam Television Cable Corporation (VTVcab) will put 42.3 million shares on sale at its initial public offering (IPO) with the expectation of acquiring VND5.96 trillion ($261.48 million) from the deal.

The Hanoi Stock Exchange recently released information about VTVcab’s IPO. Accordingly, it will offer 42.3 million shares, equalling a 47.84 per cent stake, on sale at the initial price of VND140,900 ($6.18). With the initial price, VTVcab is valued at VND12.45 trillion ($546.2 million).

According to the equitisation plan, after the IPO, the state will still hold 51 per cent in the firm.

The cable television provider was founded in 2012 under the direct management of Vietnam Television. The company mainly provides pay-TV services, advertisements, and wired telecommunication services.

Launched in 2012, it has become one of the country’s largest pay-TV players in terms of subscribers and service range, broadcasting 200 channels in cooperation with other television service providers. VTVcab is also involved in digital, customised, and Internet TV services.

It currently operates three subsidiaries, four affiliated companies, and 70 branches in 50 cities and provinces nationwide. It currently serves 2.5 million customers every year.

In 2016, VTVcab reported VND2 trillion ($87.7 million) in revenue and VND68.5 billion ($3.01 million) in after-tax profit, signifying increases of 11.3 and 5 per cent, respectively.

By the end of 2016, VTVcab’s payable debt is estimated at VND1.9 trillion ($83.4 million), including short-term debts of VND1.3 trillion ($57.03 million), which exceeds the company’s short-term asset value by more than VND500 billion ($21.9 million) million), causing concerns over VTVcab’s liquidity.

According to plan, the company expects to earn VND2.95 trillion ($129.4 million) in revenue this year and the figure will increase to VND4.46 trillion ($195.67 million) by 2022.

Meanwhile, the firm’s profit is expected to increase from VND74 billion ($3.24 million) in 2018 to VND116 billion ($5.08 million) in 2021. In 2022 alone, profits will reach VND283 billion ($12.4 million), 1.4 higher than in 2021.

2018 AGMs promise heavy dividends

Thanks to the positive business performance of Vietnam-based firms in 2017, shareholders expect large dividends in the 2018 season of annual general shareholders’ meetings (AGM).

Specifically, Vimeco JSC (VMC) stated that the firm would pay cash dividends to its shareholders on April 16. In 2017, the construction and real estate firm secured a total of VND2.27 trillion ($100.56 million) in revenue, a 56 per cent rise against the same category in 2016, and a total after-tax profit of VND231 billion ($10.23 million), which was eight times as high as in 2016.

A representative of Vimeco noted that the firm expected to issue bonus shares in the ratio of 1:1 to raise its charter capital from VND100 billion ($4.43 million) to VND200 billion ($8.86 million).

In particular, the firm planned to issue a collective 10 million shares at the starting price of VND10,000 ($0.44), commensurate with 20 per cent of the current market price (VND50,000 ($2.21) per share recorded on March 19).

Previously, several Vietnam-based firms, such as TV2, VCS, and SVI, paid unusually large dividends to shareholders with the dividend payout ratio of 60-80 per cent cash and bonus shares. To date, the highest payout dividend ratio of 660 per cent was paid by Vinacafe JSC (VCF).

Additionally, in the upcoming AGM on March 28, FPT Telecom JSC (FOX) planned to fix the payout dividend rate at 80 per cent, 30 per cent of which would be paid in cash and 50 per cent in shares.

The firm noted the total capital expended for the dividend payout plan mounted up to VND1.205 trillion ($53.38 million). After paying its shareholders dividends in shares, FOX's charter capital would grow from VND1.5 trillion ($66.45 million) to VND2.26 trillion ($100.11 million).

To add, the recent AGM of Power Engineering Consulting JSC 2 (HNX: TV2) had the dividend payout plan approved, which specified the dividend payout ratio of 110 per cent, in which 10 per cent will be cash and 100 per cent bonus shares, effective in the second quarter of 2018.

Due to the optimistic business performance accomplished in 2017, TV2 is currently at the top spot with the leading EFS of VND39,268 ($1.74) per share.

Le Duc Khanh, head of Investment Advisory at PetroVietnam Securities Inc, noted that over the past three years, the dividend payout rate offered by firms in the sectors of pharmaceuticals, construction materials, consumer goods, food processing, chemicals, steel manufacturing, and insurance tend to surpass the payout rate offered by firms in other sectors.

Belarus moves to set up automobile joint venture in Vietnam

Belarus is going to establish a joint venture to manufacture cars in Vietnam to cash in on the growing local demand.

At a meeting with Deputy Transport Minister Le Dinh Tho yesterday, Vladimir Goshin, the Belarusian Ambassador to Vietnam, said that based on the protocol signed between the two governments in March 2016, the “MAZ-Asia” joint venture is now going to take shape.

Belarus is also completing the necessary procedures to import completely-built-up (CBU) cars to Vietnam, meeting the regulations of Decree No.116/2017/ND-CP.

The ambassador proposed the Ministry of Transport (MoT) to support the operations of the MAZ-Asia joint venture as well as provide guidance on car imports.

Tho, in response, welcomed the establishment of the automobile JV, and that MoT will continue to create favourable conditions for Belarusian businesses and MAZ-Asia.

Regarding the copied certificate of eligible imported automobile class issued by competent foreign authorities (Vehicle Type Approval–VTA), Tho confirmed that the ministry will give detailed guidance.

Vietnam saw a sudden surge in automobile imports earlier this month after imports hit a record low in the first two months of this year.

According to the General Department of Customs (GDC), from March 2 to March 8, car businesses registered to import 2,020 cars of all kinds to Vietnam, with a total value of $44.42 million, most of which were cars with nine seats or less.

Most of the imported cars came from Thailand, with the rest from Japan, the US, and the UK. The vehicles were shipped through Haiphong and Saigon ports.

The number of vehicles imported was at a record low in the first two months of this year. Specifically, cars having less than nine seats only reached 18 units in January and 13 units in February, as car importers failed to meet the demand of the government’s Decree 116, which stipulates the conditions for production, assembly, import, and trading of automobiles, as well as their warranty and maintenance services.

WMC Group appoints new Vice President, Sales & Marketing

The Windsor Property Management Group (WMC Group) has announced the appointment of Mr. Stephane Laguette as Vice President, Sales and Marketing.

Mr. Laguette will play a key role in driving the group’s ambitious plans to establish itself as one of Vietnam’s leading hospitality brands, paving the way for continual growth and expansion.

“I am very excited and honored to be a part of the WMC Group, one of the fastest-growing hospitality and property management companies in Vietnam,” he said. “With flagship properties such as The Reverie Saigon, one of the top hotels in the world, it is also a great responsibility and I am determined to bring all my energy to the role in order to continue the WMC Group’s great success.”

Mr. Laguette brings a wealth of experience to the role, with a career spanning three decades in the hotel industry. He also possesses a deep understanding of the Asian market from his time in region-wide roles in sales, marketing and communications based in Bangkok and Singapore, in addition to stints in the Middle East, Mexico and the Caribbean.

He has a proven track record in leading and developing sales and marketing specialists in the fields of revenue growth, generation of sales leads, events management, and the creation of attractive media coverage. He is also a strong motivational leader and highly effective in building and coaching multicultural teams.

His top priority, he said, would be to bring additional creativity to the sales and marketing functions, to help tell the story of the group’s properties and help increase revenue across all of its hotel and restaurant holdings.

The WMC Group is a hospitality and property services management company headquartered in Ho Chi Minh City. Its diverse management portfolio includes hotels, serviced apartments, offices, restaurants, and commercial shopping centers.

It is now embarking on a dynamic path of expansion and growth to become one of Vietnam’s leading hospitality and property management groups.

E-commerce: Much room left for growth

E-commerce will become more vibrant and continue to expand its market in Vietnam, as per the view shared by many business representatives and experts at a discussion panel within the framework of Vietnam Access Day 2018, an event held by the Viet Capital Securities JSC (VCSC) on March 13-15 in HCMC.

At the panel, Raphael Wilhelm, co-founder of SoNice, said Vietnamese people’s income is growing fast, which prompts them to spend more. Moreover, product offerings on the platforms are now widely diverse, offering consumers multiple choices. This is the driving force for e-commerce development, he said.

According to Wilhelm, Vietnam’s e-commerce market comprises two categories: official transactions through online trading sites or mobile shopping applications such as Lazada or Tiki, and unofficial transactions between customers and customers (C2C) via Facebook, Instagram and the like.

“The first type is currently valued at about US$2 billion,” Wihelm said. “The other is much larger in scale, at some US$6 billion. In my experience, the scale of both types will grow by an estimated 20% per year. In the next five or six years, the size of each will be twice as large.”

Bob Willett, a member of the board of directors of Mobile World Group, however, predicted the growth would be over 20%.

“Many things remain inadequate in this market,” he said. “They’re not on the customer side, but on the retailers. For example, there are many problems in reaching to customers. That has limited the development of e-commerce. Still, it is impossible to stop this inevitable growth momentum.”

However, on the size of the e-commerce market, there were comments that brought up different numbers. Andy Tran, Head of Marketing and Business development at Tiki, said the size of the e-commerce market in Vietnam was currently less than US$4 billion. It would be only some US$1 billion if only official online shopping transactions on the platforms providing such services were taken into account.

“Even with C2C deals on social networking sites like Facebook included, the figure would be no more than US$2-3 billion,” said Tran. “Therefore, e-commerce in Vietnam only accounts for 2-3% of the total retail value of goods. Perhaps, the most optimistic data is some 8-10 million Vietnamese people out of 90 million have once done shopping online.”

These figures suggest this type of commerce is still a nascent industry and has thus plenty of room for growth. Moreover, young people are its main customers, and the number of this group will definitely rise in the future.

“We always tell investors that the current data on the market is relatively small but its prospects are great,” said the Head of Marketing and Business development at Tiki. “Compared with China, Japan and South Korea, where e-commerce makes up 25%, 17% and 18% of the retail market respectively, the proportion in Vietnam should not be less than 2-3%. Growth is expected to be explosive in the near future.”

Online services will attract more attention in the future, instead of a focus on solely physical products, Andy Tran anticipated. Currently, a lot of businesses have been involved in the online services sector, but it seems they have not fully unlocked its potentials.

Yee Chung Seck of Baker McKenzie noted that quite a few services in Vietnam have not been part of the e-commerce market. Many restaurants have not offered online booking.

“To join the online service network, small businesses will have to spend a lot of time, effort and money upgrading their technology and delivery systems,” said Yee Chung Seck. “Still, that is what food service providers in Vietnam should aim toward. By doing so, companies can expand their customer base and earn more revenue not only from local people but also from tourists.”

In addition, some business representatives predicted industries such as medicine, milk, home improvement and stationery would not stay outside the trend of e-commerce development.

From the perspective of an online payment service provider, Nguyen Manh Tuong, CEO of the e-wallet MoMo, said Vietnam has many favorable conditions—young population, great adaptability to technology, cheap and popular Internet, to name just a few. Notably, in recent years, the Government has modified several policies and laws in this field to support e-commerce development. The Government has taken actions to promote mobile payments, granting 20 companies licenses in the past two years, versus only two in the preceding decade, leaving the door wide open for many enterprises to enter this area.

Although it is considered as potential with a bright future in sight, there are also suggestions that e-commerce in Vietnam still has many things to be improved.

Wilhelm of SoNice said many domestic online sales companies are operating separately, which is not the way to optimize the experience for their customers. Narrowing the gap between what one’s business thinks customers need and what they want is the way to maximize profits, boost online sales and increase shopping frequency, he emphasized.

Businesses in the UK have developed the mindset of connectivity, making e-commerce available at almost every store in a mall. Retailers have negotiated with these stores to place the devices that provide online sales service there. Therefore, if a customer goes shopping at a store and does not find what they need, the staff may guide them to look for where that item is sold online, said the co-founder of SoNice.

A matter of concern in the market today is how to make access to products easy. “When we start talking about e-commerce, it’s about discussing how to make purchases more convenient. Whether customers shop online or offline, they want to receive the same quality of goods and services. Unfortunately, this is not what Vietnamese businesses think,” Bob Willett said.

In addition, according to Mr. Raphael Wilhelm, although there is still much room for market expansion in rural areas, enterprises find it hard to access the market. It is because overland infrastructure is not good enough and the construction of distribution and delivery centers in the areas is not easy.

Moreover, in contrast to other markets in the world, the direct purchase of goods in Vietnam is much easier directly than online, said Wilhelm. Customers must log on to an online trading site, register an account, enter search terms, and perform a series of actions to buy the item they need. This is much more time-consuming than going to a nearby grocery store. Therefore, it is necessary to make adjustments so that online transactions are easier, more convenient and safer.

Vietnam’s economy heavily relies on credit, says expert

With the economy of Vietnam operating on loans, the State has been issuing bonds and enterprises borrowing from banks to make investments, economic expert Tran Du Lich told a conference on 2018 economic scenarios in HCMC on March 20.

Speaking at the annual conference held by Thoi bao Kinh te Vietnam, Lich, a member of the Prime Minister’s economic advisory group, said that to lower lending rates, the central bank needs to increase recapitalizing rates, scale up the ratio of lending to deposit, and prevent inflation at the same time.

Interest rates declined to a certain extent last year, and the rates are expected to go down slightly or at least stay as they were late last year, he said. Lich also recommended financial restructuring at enterprises to reduce borrowing.

According to Lich, economic growth is projected at 7.1% in quarter one and the economy is believed to be making progress. The Government should focus on creating a stable, transparent legal environment and gain trust among businesses, he added.

Speaking about exchange rates, Lich said that considerable rate fluctuations are unlikely.

Vu Viet Ngoan, a financial expert, shared the opinion, saying foreign exchange rates would not fluctuate greatly this year.

With regard to interest rate reductions, according to Ngoan, interest and exchange rates are the trickiest variables of the year. Although this year’s inflation pressure is greater than last year’s, inflation will be kept under control.

Besides inflation pressure, the dollar interest rates tend to rise on the global market, whereas Vietnam needs to keep exchange rates stable and attract local currency deposits.

In addition, banks still need to keep their borrowing-lending ratio at a reasonable level to cover bad debt. In case lending rates are lowered, deposit rates should also drop, which also depends on whether banks’ mobilization is affected and whether clients withdraw money or not.

According to Ngoan, limited liquidity at banks remains a challenge. There is even a big mobilization rate gap of up to 2% among banks.

It is also necessary to pay attention to indirect investments on the stock market, Ngoan noted.

Any major change on the stock market will pile pressure on the foreign exchange market, so increasing foreign reserves is crucial.

Local firm succeeds in cleaning saline sand

A firm in the Mekong Delta city of Can Tho has succeeded in processing saline sand, which is a major achievement to address the shortage of clean sand for construction purposes.

With technology researched by Phan Thanh Transport-Trading-Construction Co Ltd, the salinity of sand is brought down to a minimum level to meet Vietnam’s standards, said director Vo Tan Dung.

Experimental results of the Can Tho Technical Center for Quality Measurement Standards and the South Vietnam Institute for Building Materials have shown that saline sand after being processed using the company’s technology has its salinity far under permissible levels.

In particular, with such technology, the technical center in Can Tho analyzed sand samples taken at the Ka Long estuary (Quang Ninh Province) and found its salinity falling from 0.24% to 0.007%.

Sand collected from the same source and having a salinity level of 0.21% was found to be no longer saline after being treated by the technology and analyzed by the aforementioned institute.

Similarly, the Vietnam Institute for Building Science and Technology also tested samples of saline sand taken in Binh Thuan Province and found salinity at 0.005%.

Compared to Vietnamese standards, such results are within the permissible levels, which means the Can Tho-based company has successfully treated saline sand and make it clean. 

Dung of the company also quoted a study on using sand and stone of Can Tho University, which showed that the use of clean sand can cut cement use by 10-17%.

Loss-making polyester fiber plant to resume operation

The loss-making, State-owned Dinh Vu Polyester Fiber Plant in the northern province of Haiphong is scheduled to restart operation later this month, having arrived at an agreement with a consortium to ensure consumption of its fiber products.

Vietnam National Oil and Gas Group (PVN), the owner of the fiber plant, said the Ministry of Industry and Trade, PVN, and Dinh Vu Petrochemical and Fiber JSC (PVTex) are unanimous in some solutions to bring the polyester fiber plant back to operation again.

They have approved a cooperation plan with experienced partners in the production and consumption of synthetic fiber products so that the plant can run in an effective manner, creating highly value-added and quality products, the Vietnam News Agency reports.

As such, PVTex, the operator of the plant, could see light at the end of the tunnel after the protracted suspension of the plant. The plan to resume operation is made possible following an initial agreement reached between Dinh Vu Petrochemical and Fiber JSC and a consortium of Singapore’s Fortrec Chemicals and Petroleum Pte Ltd, India’s Reliance Industries Limited, and Vietnam National Textile and Garment Group (Vinatex).

It is reported that the consortium wants privilege to purchase paraxylene, a chemical essential to the process of manufacturing plastic bottles and polyester clothing, from Nghi Son Refinery and Petrochemicals in the northern province of Thanh Hoa.

Besides, the group expresses interest in purchasing half of polypropylene, a thermoplastic polymer used in a wide variety of applications, from Binh Son Refining and Petrochemical Company Limited, the operator of the US$3-billion Dung Quat Oil Refinery.

The consortium proposes PVTex shareholders extend the time for cooperation to at least five years with concessional financial terms to ensure the fiber plant can run at a profit. Specifically, during the first three years, the depreciation costs on fixed assets shall not be accounted, and in the remaining two years, such amortization costs can only be weighed on certain assets if the plant makes profits.

Notably, the investors demand the right to acquire PVTex stakes in case the State-owned company goes public, or in case PVN, which holds a 74% stake in PVTex, divests its capital from the company.

A PVN representative said to make the plan viable, the Government should ensure legal framework as well as privileged operation rights for the plant.

HCMC to have information safety center this year

For the well-being of the information system for the smart city project, the HCMC government has announced a decision establishing an Information Safety Center, which is expected to be up and running later this year.

In a just-released document, the municipal government states that the HCMC Information Safety Center will provide protection for the information system and the concentrated information storage of the project “Developing HCMC into a smart city in the 2017 – 2020 period, with a vision towards 2025”.

The center will also ensure information safety, protect information and automation systems, and supervise and control information systems for the city’s infrastructure facilities.

The center will also offer tremendous help for the smart city project, from collecting information to safeguarding telecommunication, data center, database, and applications of the city’s offices and businesses.

Apart from above-stated responsibilities, the center will offer information safeguarding services for enterprises in the city, as well as support other localities when needed. In addition, it will develop partnerships with international safety organizations and computer emergency response teams.

Under the new document, Saigon Industry Corporation (CNS) is appointed by city authorities to set up a joint stock company to manage the center. The company will include 51% of State capital together with the capital contribution from State-owned and private enterprises.

CNS general director Chu Tien Dung pledged to join hands with concerning businesses to establish the company to be named HCMC Information Safety Joint Stock Company.

The project study is expected for completion and submission to the city government for approval in the second quarter. Furthermore, regulations on the center’s operation and cooperation will be perfected in the same period.

The center will start recruitment in the next phase before the official operation in the final months of this year.

Belgian corporation eyes port development in Mekong Delta

Belgian engineering and investment company Rent-A-Port is interested in cooperating in port and inland waterway construction in the Mekong Delta, according to the Ministry of Transport.

At a working session with the ministry on March 16, a Rent-A-Port representative said that with experience in marine infrastructure development, the firm wants to cooperate in building ports and waterways in the Mekong Delta, which holds high potential for water transport of farm produce.

As Rent-A-Port sees it, vegetables and fruits in the delta can be exported in bulk to Qatar and Oman by building cold storage facilities and transporting such produce by boat to seaports for export. Therefore, the firm expected the ministry’s support to build marine infrastructure that serves farm exporters.

The firm also requested the ministry permit the building of port facilities at Haiphong International Gateway Port Industrial Zone in the northern city of Haiphong to handle ships of 100,000 tons.

It also wants permission to dredge the Chanh River in Quang Ninh Province with around 500,000 cubic meters of material to be removed in a pilot phase before dredging some six kilometers of the river. Such material will be used as backfilling materials at Tien Phong Industrial Park.

Minister of Transport Nguyen Van The said that marine facilities for vegetables and fruits exports to the Middle East may help reduce road traffic and logistics costs as well as fuel the southern region’s socio-economic development.

However, the ministry wants Rent-A-Port to map out a detail plan, which the ministry will use as a basis to work with relevant localities and agencies over wheather the plan can be considered for the national seaport system development planning.

With regard to the river dredging proposal which may deliver economic and environmental efficiency, the firm also needs to present its specific plan, including environmental impact, to seek approval.

Japan supports garlic farming in Nghe An

Japan-based Farmer’s Co-op will support the north-central province of Nghe An to grow garlic for export to Japan via financial support from the Japan International Cooperation Agency (JICA), the news site baonghean.vn reports, referring to a meeting on March 19 between the provincial government and Japanese partners.

Farmer’s Co-op, based in Japan’s Kagawa, agreed to transfer farming technology to Nghe An Province following the successful trial cultivation of the Japanese garlic breed in the province’s Ky Son District. The Japanese garlic breed was successfully planted on a trial basis in Ky Son through a technical assistance project for agricultural developing and planning in Nghe An funded by JICA.

At the meeting, Farmer’s Co-op experts concluded that this garlic breed could be further developed in Ky Son District thanks to its good quality and productivity.

Kondo Takashi, director of Farmer’s Co-op, suggested that Nghe An send engineers to Japan for training and technology transfer so that they could apply such cultivation practices in Ky Son.

The garlic growing project is estimated to cost US$1 million within three years, and Farmer’s Co-op proposed that Nghe An authorities give support in completing the project’s procedures for JICA’s consideration and approval of financial support.

Vice chairman of Nghe An Province Dinh Viet Hong highly appreciated the interest and support of JICA and Farmer’s Co-op in agricultural development in the province. The provincial government would assign Nghe An Department of Agriculture and Rural Development to set up a management unit for the project, and would allocate reciprocal capital together with JICA’s capital to develop the project soon, Hong said.

Hong also suggested that Farmer’s Co-op and JICA help Nghe An to boost cultivation of other crops originating from Japan to bring into play farming potentials of the mountainous district of Ky Son in particular and Nghe An’s western region in general.

Saigon Petro’s proposal for fuel tax adjustment rejected

The Department of Tax Policies under the Ministry of Finance has rejected a proposal by Saigon Petro Co Ltd for adjusting the environmental protection tax on bio-fuel E5 and fossil gasoline A95, said Pham Dinh Thi, director of the department.

The HCMC-based fuel trading firm earlier suggested that the Government impose a higher environmental tax on A95 gasoline to make it become more expensive, thus promoting the consumption of E5, according to Tien Phong newspaper.

Rejecting the proposal, Thi said the work has already been done by the special consumption tax. Specifically, the special consumption tax rate is 8% on E5 and 10% on A95.

Saigon Petro said the average consumption of A92 gasoline, which was banned on the market early this year to promote E5 consumption, was 500,000 cubic meters per month. Meanwhile, E5 sales were just half as much as that of A92 since the bio-fuel was introduced on the market.

A95 gasoline is VND1,600 per liter higher than E5, a gap not wide enough to discourage consumption of the fossil fuel. According to Saigon Petro, commuters could possibly save VND400 billion (more than US$17.6 million) a month if they used E5 instead of A95.

Data of the Vietnam Industry and Trade Information Center (VITIC) under the Ministry of Industry and Trade shows that the country imported 2.21 million tons of fuel worth US$1.4 billion in the first two months of 2018, up 35.1% and 54.6% year-on-year respectively. Fuel imports from Southeast Asia made up over 60.7% of Vietnam’s total fuel imports.

Vietnam attends tea & coffee expo in Singapore

Vietnamese tea and coffee enterprises are exhibiting their products at the International Coffee & Tea Industry Expo 2018, which opened in Singapore on March 22.

On display at the expo are techniques for planting, processing and preserving tea and coffee and materials and products from countries around the world. 

vietnam attends tea & coffee expo in singapore hinh 0 The three-day event, which is expected to welcome 11,000 visitors, serves as a venue for exhibitors to seek customers and establish partnerships. 

Participants are focusing on highlighting their unique characteristics in making coffee and tea, and tea and coffee enjoying culture in their countries. 

Tran Thu Quynh, Vietnamese Commercial Counsellor in Singapore emphasised the significance of the event for Vietnamese tea and coffee firms, saying it helps them promote their products to international friends. 

In the framework of the event, seminars and discussions with experts will be held, aiming to update enterprises on development trends, as well as difficulties and challenges facing the regional tea and coffee industry.

The global demand for coffee is projected to increase to 10 million tonnes by 2020. The Southeast Asian region is forecast to become a promising market for tea and coffee enterprises.

Vietnam, RoK businesses sign cooperation deal

The Republic of Korea’s (RoK) Small and Medium Enterprise Innovation Association (INNOBIZ) has signed a cooperation deal with TNG Holdings Vietnam (TNG) as a means to improve their strategic partnership.

vietnam, rok businesses sign cooperation deal hinh 0 Accordingly, TNG will serve as a partner to supply products and services through its companies, providing solutions for land rental in industrial zones more than 3,000ha in size, and in real estates, commercial centres and high-grade apartments, offices, real estate management, recruitment, protection, office/industrial cleaning services, and renting houses and providing other services for experts. The partnership will create the best possible conditions for INNOBIZ members when they invest and operate in Vietnam.

INNOBIZ will introduce TNG as a strategic partner to its members seeking investment and development opportunities in Vietnam.

In addition, within the framework of the deal signing, Maritime Bank is serving as a partner to supply financial solutions, and banking and finance services to INNOBIZ members while they operate in Vietnam.

The signing of the cooperation deal marks a new level of cooperation between INNOBIZ and TNG for the enhancement of economic development, which will help to attract further Korean investment into Vietnam.

INNOBIZ has more than 18,000 members, mainly operating in development and the application of advanced technologies in production and trading. In recent years, INNOBIZ has played an important role in promoting partnership between its members and Vietnamese businesses.

Deputy PM wants auto market issues addressed

Deputy Prime Minister Trinh Dinh Dung has asked relevant ministries and agencies to make life easier for automakers and auto importers, the Government news website reports.

The Government Office has issued a notice on a conclusion by Deputy PM Dung at a meeting late last week on the implementation of Government Decree 116/2017/ND-CP on auto manufacture, assembly, import, maintenance and warranty services. Many auto traders have seen the decree as an impediment to car imports.

The notice states the local auto market is growing strongly, and car consumption is forecast to rise strongly in the years to come as the economy expands.

Therefore, the sector should gradually meet the demand for cars, and guarantee the rights and benefits of consumers and their safety, protect the environment, and ensure the number of the vehicles in line with infrastructure.

In the notice, Dung stressed the need for implementing a strategy for developing the local auto sector in an effective manner, thereby increasing the ratio of local auto content, developing supporting industries, and building Vietnamese auto brands.

The Government reaffirms its stance on its equal treatment for local and international auto manufacturers and assemblers in an attempt to develop the local auto sector, satisfy the market demand, and bolster socio-economic growth.

The notice states that many liberal policies and regulations have been issued. Specifically, Decree 116/2017/ND-CP on auto manufacture, assembly, import, maintenance and warranty services and Circular 03/2018/TT-BGTVT guiding the implementation of the decree have received support from local residents and automakers, though many traders take an opposite view.

Some have voiced their complaints over difficulties and obstacles in implementing the decree, especially relating to the import of cars.

Thus, the Ministries of Transport and Industry-Trade are told to solve business difficulties and obstacles, and streamline policies and regulations on development of the auto industry. If necessary, they should petition the Government to amend the decree and its circular in a way that ensures the principles of equality, transparency and competition in line with international commitments and practices.

They also are assigned to scrutinize the imports of auto within the ASEAN in accordance with the ASEAN Trade in Goods Agreement (ATIGA) which sets certain kinds of products subject to zero tariffs.

Car imports into Vietnam have almost ground to a halt since early this year as Decree 116 tightens control on car imports by setting out stringent quality, technical safety and environmental protection requirements.

The decree requires local car importers to obtain vehicle type approval (VTA) certificates from exporting countries but authorities in many car exporting countries do not issue such certificates.

In the week ending February 1, only 23 automobiles, with three of them being cars of less than nine seats, were imported into the nation, according to Tuoi Tre newspaper.

In a bid to facilitate car exports to Vietnam, Thai and Indonesian governments have agreed to issue VTA certificates for car importers in Vietnam.