New technology ups rice value in Can Tho

The installation of automated processing lines in a major rice mill is set to boost hi-tech marking in Cần Thơ City, officials say.

The Phụng Hoàng Rice Export Import Jsc, in co-operation with Swiss group Buhler, has automated all production lines in one of its rice mills.

The automated production lines at the Phụng Hoàng 3 Rice Mill, which began operating last Thursday, allows the mill to process 60 tonnes of rice per hour.

All activities, including separating paddy from husk, whitening the rice and removing almost 95 per cent of impurities, are automated. Phụng Hoàng is the first enterprise in Việt Nam to apply this technology.

Lê Văn Tâm, Vice Chairman of Cần Thơ People’s Committee, said the new processing method deployed by Phụng Hoàng 3 Rice Mill will contribute positively to high-tech farming development in the southern city.

Tâm added that applying modern technology will also help the city attract more investment, improve its competitiveness and facilitate deeper integration into the international market.

Cần Thơ cultivates rice on nearly 240,000ha every year, with about 90,000ha dedicated to the winter-spring crop. Food production is estimated at about 1.5 million tonnes yearly, Tâm said.

The new processing technology used by Phụng Hoàng 3 Rice Mill has boosted rice consumption both in Cần Thơ City and neighbouring provinces like An Giang and Đồng Tháp, increasing the value of rice and also ensuring the quality of rice for export, Tâm said.

Othmar Hardegger, Swiss Consul General in HCM City, noted that Việt Nam was one of the world’s leading rice exporters with plenty of favourable conditions to maintain and increase its share in the world market. However, in order to compete with foreign suppliers, it is essential that the country ensures that its rice meets international quality and food safety standards.

The latest technology and expertise of the Buhler Group will help Cần Thơ rice meet the standards, leading to   improved labour productivity, safe working environment and better management on food safety and hygiene.

Huỳnh Thế Năng , Chairman of the Việt Nam Food Association (VFA), praised Phụng Hoàng’s efforts to applying modern technology in rice production. It was a bold decision by the company to adopt hi-tech farming, he said.

Phụng Hoàng Rice Export Import Joint Stock Company, established in 2007, is one of the leading rice exporters in Việt Nam. The Phụng Hoàng 3 Rice Mill, located in Thới Thuận Ward, Thốt Nốt District, has a daily capacity of 500 tonnes of rice that meets international standards.

Buhler is a leading Swiss company with more than 150 years of experience in the field of grain processing. In addition to Việt Nam, it is also present in Thailand and India, other leading rice producers and exporters.

In 2016, Buhler opened a factory in Long An, marking its presence in Việt Nam. Phụng Hoàng was the first company in Việt Nam to use Buhler’s technology in rice production and processing.

HCM City to develop food industry     

The HCM City People’s Committee and the HCM City Food and Foodstuff Association (FFA) last Friday signed a co-operation programme to boost the development of the city’s food and foodstuff industry.

Nguyen Phuong Dong, deputy director of the city Department of Industry and Trade, said this co-operation programme is designed with practical activities, such as annually organising four direct dialogues on different topics between city leaders and food and foodstuff enterprises towards resolving difficulties faced by enterprises during their production and trading processes.

In addition, at least two seminars will be held annually to provide enterprises with the latest information about international integration, development trends and other information related to the food and foodstuff processing industry, he said.

In addition, the two sides will join hands to organise at least two trade promotion programmes in the food and foodstuff industry at home and abroad.

Dong said trade promotion activities will not stop at just boosting retail sales of food and foodstuffs, but also target to enhance the connection between the city’s food and foodstuff producers and domestic and foreign distributors to create opportunities for producers to expand their market shares at home and abroad.

The two sides will co-ordinate to establish an information channel to collect feedback from enterprises to solve problems in a timely manner.

Tran Vinh Tuyen, deputy chairman of the HCM City People’s Committee, said it is very necessary to enhance the role of business associations in the context of economic integration and in line with the city’s orientation to develop a strong business force.

After signing this co-operation programme, the City People’s Committee will continue to study co-operation programmes with other business associations in the city.

Ly Kim Chi, FFA’s chairwoman, said businesses in the industry are facing difficulties and challenges in improving their competitiveness and accessing markets.

The co-operation programme will create a close linkage between the city authorities and businesses via the association so as to timely solve difficulties faced by businesses, she said.

The city is home to more than 1,700 enterprises involved in producing and processing of food and foodstuffs. The food and foodstuff industry is one of the city’s four key industries.

Taiwan, VN can go green together     

There is a huge opportunity for Viet Nam and Taiwan to boost co-operation in the renewable energy industry, delegates told a seminar in HCM City last Friday.

 Speaking at a seminar on Taiwan Green and Photovoltaic Industry in HCM City last Friday, Nguyen The Hung, deputy director of the Viet Nam Chamber of Commerce and Industry’s HCM City branch, said demand for developing green and renewable energy has increased globally, including in Viet Nam.

Viet Nam has great potential for renewable energy development, he said, adding that the Government has put in place policies to encourage investment in this clean energy.

Yu Lung Shih, Manager of Taiwan Trade Centre’s representative office in HCM City, said: "Viet Nam is currently in a campaign to achieve energy self-sufficiency by 2050." By 2050, it aims to produce at least 35 per cent solar power and 13 per cent wind – while cutting carbon emissions by 80 per cent.

That beckons huge prospects for green energy producers, he said.

“Top power-maker Taiwan has already developed a lot in both solar power, wind power and many other renewable energies. Taiwan’s strengths can now be used to assist Viet Nam to keep on schedule,” he said.

Cheng-Nan Chu, manager of Industrial Technology Research Institute, Taiwan, said the International Energy Agency forecasts that renewable capacity will grow from 1,969 GW in 2015 to 2,795 GW in 2021.

IEA sees renewables growing 13 per cent more between 2015 and 2021 than they did in its forecast for 2014-20 conducted in 2015, due mostly to stronger policy backing in the US, China, India and Mexico, he said.

According to Yi-Kuang Chen, general manager of Kenmec Vietnam, Taiwan has been in solar industry for many years and so has many solutions to support different industries.

Sharing his experience in developing the solar energy industry, he said the most important thing is human resource development.

“I recommend Viet Nam invest more in the solar industry’s human resources.”

Hung said professional renwable energy trade shows in Taiwan, including the Taiwan International Green Industry Show (TiGiS) and Taiwan International Photovoltaic Exhibition (PV Taiwan), would help Vietnamese firms keep up to date the green and renewable energy development trends in the world in general and in Taiwan in particular, as well as enhance co-operation opportunities with Taiwanese firms in the sector.

Carol Chang, project manager, Taiwan External Trade Devolopment Council, said the exhibitions will be held at Taipei Nangang Exhibition Centre from October 18-20.

The exhibitions will feature 300 exhibitors in 800 booths. Products on display include the latest solar PV systems, equipment and applications, as well as green energy, technology and environmental protection themes.

The events are expected to attract 11,000 visitors, including 1,200 from overseas, compared to the 10,362 visitors at last year’s show, she said. 

Stock market recovery allows companies capital hike

Phạm Quang Dũng, chairman of the Tasco Joint Stock Company (HUT), revealed that his company plans to issue some 80 million shares this year to strategic investors and retail investors to expand its chartered capital and business operations.

Last year Tasco had planned to sell 50 million shares but the plan was shelved for certain reasons.

Việt Mỹ Medical Diagnostics Biological Manufacturing Business Joint Stock Company, Kido Frozen Foods Company (KDF), Apax Holding Joint Stock Company (IBC) are also planning to go down this route or make an initial public offering.

The positive signs shown by the economy and the recovery of the stock market are the main reasons for their expansion plans.

In the first quarter of the year the consumer price index was up 1.66 per cent year-on-year.  Credit growth was 3 per cent, much higher than the 1.54 per cent seen in the same period last year. Exports were up 12.8 per cent to US$43.7 billion.

The stock market has also been buoyant, with all the bourses posting steady gains and the prices of many shares breaching the VNĐ10,000 par level.   

On April 13, the VN-Index on the HCM Stock Exchange closed at 727.31 points.

On the Hà Nội Stock Exchange, the HNX-Index closed at 90.03 points.

Analysts said what the companies need to do now to safeguard investors’ interest and prevent dilution is ensure commensurate growth in profits so that the EPS remains at comparable levels post-issuance of stocks.

Vietjet offers millions of promotional tickets for summer

 Low-cost airline Vietjet has launched a promotional campaign for the coming summer, offering one million promotional tickets priced from 0 VND within the golden hours 12h-14h at www.vietjetair.com together with interesting activities.

The campaign “Free summer, Fly for free”, which the airline describes as the most outstanding ever, will last from April 25 to June 15.

During the campaign’s first week, Vietjet will run a three-golden-day promotion from April 25 to 27, applied for all domestic and international routes from Vietnam to Seoul and Busan (the Republic of Korea), Hong Kong (China), Kaohsiung, Taipei, Taichung and Tainan (Taiwan-China), Singapore, Bangkok (Thailand), Kuala Lumpur (Malaysia), Yangon (Myanmar) and Siem Reap (Cambodia)  with travel time being within May 15 and December 31 (excluding national holidays).

The promotional tickets are available for booking within the golden hours from 12:00 to 14:00 at www.vietjetair.com (also compatible with smartphones at https://m.vietjetair.com) or at www.facebook.com/vietjetvietnam (just click the “Booking” tab). Payment can be easily made with debit and credit cards of Visa, MasterCard, JCB, KCP and American Express and ATM cards issued by 29 Vietnam’s banks that have been registered with internet banking.

Especially, from May 8 to June 4, participants of “Free summer  – Fly for Free” game at Vietjet’s microsite: freesummer.vietjetair.com will have chances of winning a weekly award of 5 free return flights, each flight with 5 free tickets for a five-person group and a grand award of a free package tour to an optional destination.

Also, all customers successfully booking tickets at www.vietjetair.com with instant payment within the golden hours from May 8, 2017 to June 15, 2017 will also have chances to join the lucky draw for the gifts of mobile phone’s top-up cards and air ticket promotion codes at summerwin.vietjetair.com.

Besides, the summer campaign will launch a series of activations including interactive games, amazing performances by Vietnamese and international celebrities, “Vietjet Bikini” challenge at some domestic airports and onboard Vietjet flights.

Vietjet is the first airline in Vietnam to operate as a new-age airline with low-cost and diversified services to meet customers’ demands. It provides not only transport services but also uses the latest e-commerce technologies to offer various products and services for consumers. 

Vietjet is a member of the International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. The airline was also named as one of the Top 500 Brands in Asia 2016 by global marketing research company Nielsen and “Best Asian Low Cost Carrier” at the TTG Travel Awards 2015, which compiles votes from travelers, travel agencies and tour operators in throughout Asia. The airline was also rated as one of the top three fastest growing airline brands on Facebook in the world by the global social media analytics company Socialbakers.

Currently, the airline boasts a fleet of 45 aircraft, including A320s and A321s, and operates 350 flights each day. It has already opened 63 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, the RoK, Taiwan, Malaysia, China and Myanmar. It has carried nearly 35 million passengers to date.

Looking ahead, the airline plans to expand its network across the Asia Pacific region. To prepare for this plan, Vietjet has signed agreements with the world’s leading aircraft manufacturers to purchase more brand-new and modern aircraft.

PV Power prepares for August IPO

PetroVietnam Power Corporation (PV Power) will make its initial public offering (IPO) this August, the electricity producer announced.

The Ministry of Industry and Trade has approved the business valuation of the company, said a representative of PV Power. It has worked to devise an equitisation plan and seek strategic investors for the IPO.

PV Power is a wholly-owned unit of the Vietnam Oil and Gas Group, with current charter capital at 21.7 trillion VND (958.7 million USD).

Established in May 2007, PV Power operates eight power plants with combined capacity of over 4,208 MW.

It generates more than 16 billion kWh of electricity annually, 15 percent of the nation’s electricity.

During its 10-years of operation, PV Power has provided 136 billion kWh of electricity to the national grid, earning 8.6 trillion VND (378.6 million USD) of profit.

Vietnamese Camau Bananas exported to Dubai

A shipment of 20 tonnes of Cavendish banana, organically grown in U Minh Ha forest, the Mekong Delta province of Ca Mau, is on its way to the United Arab Emirates’ Dubai city.

This is the fifth batch of bananas exported under the brand name Camau Bananas to Dubai in the past month.

The bananas are sold for 8,000 VND (0.35 USD) per kilogramme.

HDBank to raise charter capital to $389m     

The HCM City Development Joint Stock Commercial Bank (HDBank) will increase its charter capital to almost VND8.83 trillion (US$389 million) from the curent VND8.1 trillion by issuing 56.7 million shares, vietnamplus.vn reports.

Of the sum, VND292 billion will be earmarked for building its headquarters and expanding operations and VND437 billion will be used for medium- and long-term loans.

These targets are part of a plan approved at the bank’s annual shareholders meeting in HCM City last Friday.

HDBank general director Nguyen Huu Dang said the bank expects to post VND1.3 trillion pre-tax profits in 2017, a rise of 13 per cent against last year, and keep its bad debt rate below 3 per cent.

Between 2017 and 2021, HDBank will work to achieve an average annual ownership capital growth of 15 per cent. By the end of 2021, it plans to raise charter capital to VND15 trillion and pre-tax profits to VND2.5 trillion.

In 2016, HDBank’s pre-tax profits and credit outstanding balance exceeded VND1.1 trillion and VND90.1 trillion, respectively.

Dong Nai prioritises social housing construction until 2020

The southern province of Dong Nai will prioritise resources for social housing construction between now and 2020, said Vice Chairman of the provincial People’s Committee Tran Van Vinh. 

During a local working session on April 21 with a delegation from the Construction Ministry led by Deputy Minister Le Quang Hung, Vinh said the province will build 20,000 social houses for local workers and officers by 2020. 

Dong Nai covers an area of nearly 600,000ha and has a population of nearly 3.3 million people. With major urban areas of Bien Hoa, Long Khanh, Nhon Trach and Long Thanh, the province currently records around 300 real estate projects, including 38 large scale ones. 

According to Vinh, Long Thanh district is being zoned off for the construction of 5,000ha Long Thanh international airport, apart from 21,000ha reserved for urban areas and services around the airport. 

He asked for the ministry’s permission to swap 20 percent of land area in 10ha-plus projects for cash, and auction 20 percent of land area handed over by commercial housing projects in locations inappropriate for social housing construction. The proceeds will be added to the provincial housing development fund. 

A ministry’s representative advised the provincial authorities to submit the above proposal to the Prime Minister for approval. 

Deputy Minister Hung said Dong Nai needs to pay attention to the quality of planning and management as well as housing construction for workers in industrial areas.

Forum discuss ways to better corporate governance

The Vietnam Chamber of Commerce and Industry (VCCI) in conjunction with the State Security Commission hosted a business corporate forum in Hanoi on April 21 to announce an annual report on Vietnamese businesses in 2017. 

General Secretary of the VCCI Pham Thi Thu Hang, who is also Director of the Institute of Business Development, said the report is one of the important documents which help the public get insights into Vietnamese enterprises’ development. 

It gives an overview of Vietnamese businesses’ real development and capacity, thus proposing measures to improve their competitiveness, she noted.

According to the report, Vietnam recorded a strong increase in the number of new enterprises in 2007-2016, with over 802,000, lifting the total number of businesses in the country to over 1 million. 

Notably, the country had over 1000 firms registered for establishment in 2016.

Enterprises that declared to stop operation or dissolve in 2016 decreased by 9.5 percent against the previous year. 

However, Hang also noted that the quality and efficiency of Vietnamese enterprises remain limited due to ineffective governance capacity, especially corporate governance. 

According to VCCI Vice Chairman Doan Duy Khuong, the practice of convenient-oriented management with the shortage of corporate governance-related factors makes enterprises’ competitiveness restricted, resulting in their slow response to the change of business climate, especially in the context of the financial crisis. 

He also underlined the need to improve corporate governance capacity, saying that this is a decisive factor to help enterprises narrow gaps and keep pace with firms in regional countries. 

Participants to the forum discussed solutions to the issues, saying that it is necessary to focus on applying the international financial statement-related accounting standards, honouring enterprises with good performance, and enhancing the role of business associations. 

The above-mentioned efforts have been promoted by the State Security Commission in connection with the International Finance Corporate (IFC), the VCCI and relevant agencies through the Vietnam Corporate Governance Initiative (VCGI), Khuong said.

Ho Chi Minh City keen on increased trade with Iran

Ho Chi Minh City wants to boost trade and investment connectivity with Iran, Chairman of the municipal People’s Committee Nguyen Thanh Phong told Chairman of the Chamber of Commerce, Industries, Mines and Agriculture of Iran Gholam Hossein Shafei during a reception in Hanoi on April 21. 

Phong lauded the growing Vietnam – Iran ties via visits by the two countries’ State leaders and trade facilitation towards achieving a two-way trade of 2 billion USD in the coming years. 

The city commits all possible support for foreign businesses, including those from Iran to seek effective and long-term business opportunities here, especially in fields of the city’s interest and Iran’s strengths such as industry, construction materials, and high-tech agriculture, he said. 

Shafei, for his part, hailed Vietnam as an important destination for Iranian enterprises and the 2-billion-USD two-way trade goal as feasible. 

He said intensifying economic-trade ties will bring practical economic benefits for each country when Vietnam serves as a gateway for Iran to access ASEAN market and Iran bridges Vietnam and the Middle East countries. 

Expressing impression on Ho Chi Minh City’s vibrant development, he stressed that Iranian firms always consider the city as a major economic hub of Vietnam. 

The Iranian government will encourage domestic firms to increase investment in Ho Chi Minh City, contributing to lifting Vietnam-Iran economic and trade ties to match their political-diplomatic relations.

FPT Q1 revenue, profit before tax both up 14%

FPT recorded consolidated revenue of VNĐ9.77 trillion (US$428.5 million) in the first quarter of the year, up 14 per cent year-on-year, the corporation reported.

Profit before tax also increased by 14 per cent to VNĐ643 billion, while profit after tax was VNĐ540 billion, up 21 per cent year-on-year.

Profit growth of FPT remained driven by its two core businesses, technology and telecom sectors, which together accounted for 74 per cent of the consolidated profit before tax of the group.

More specifically, profit before tax of the technology and telecom sectors increased by 38 per cent and 18 per cent year-on-year, respectively.

The distribution and retail sector achieved 107 per cent and 104 per cent of the first quarter’s targets, yet the profit before tax of the sector as a whole decreased by 14 per cent year-on-year due to poor performance of the mobile handset distribution as reflected in the plan.

Meanwhile, the retail segment continued to perform outstandingly in the first quarter, with its revenue up 33 per cent and profit before tax up 45 per cent year-on-year.

With 31 per cent contribution to consolidated profit before tax in the first quarter, overseas markets continued to be a key profit growth driver of FPT.

Notably, in the first three months of the year, FPT’s overseas markets recorded revenue of VNĐ1.42 trillion, up 14 per cent compared with the same period last year, and profit before tax of VNĐ200 billion, up 14 per cent.    

Rong Viet Securities sees profits zoom     

Rong Viet Securities Company has reported a 157 per cent jump in pre-tax profit to VND30.1 billion (US$1.3 million) in the first quarter.

Revenues rose by a more modest 62 per cent to VND63.3 billion ($2.8 billion).

The company said security broking accounted for VND33.5 billion ($1.4 million) of revenues with proprietary investment also accounting for a large chunk of its profits.

The company said it is on track to achieve the year’s targets.

It said would pay 6 per cent dividend for last year in May this year.

By the end of this month it would switch from the Ha Noi to the HCM City stock market, it added.     

Bad debts still a headache for banks

Banks continue to find it very difficult to recover their money from defaulting borrowers though mounting bad loans put pressure on their capital base and threaten their ability to grow in a highly competitive environment.

Many bankers in HCM City made this complaint at a recent meeting held by the State Bank of Việt Nam (SBV) and the city People’s Committee.

According to the SBV, in late February the bad debt ratio of HCM City-based banks was 3.67 per cent, which was badly affecting their business.

The bankers said their banks were facing difficulties in recovering bad debts. They said mortgaged properties were not easy for lenders to sell to recover debts because legal procedures were very complicated and the property market was sluggish.

To sell a mortgaged property banks need to go through many time-consuming steps, including verification of the property, enforcement of judicial sale of property and property valuation.

Some of the bankers say under current legal provisions, creditors like them do not have any rights that can enable them to recover their money.

The courts do not accept any bad debt-related petition from credit institutions if they do not have the exact residential or working address of the borrower.

Besides, the lenders have to pay enforcement costs, while the debtors do not have to pay anything, meaning they often intentionally delay the enforcement. This in turn pushes the banks’ costs up, creating a vicious cycle.   

Economists say it is very difficult for credit institutions or the Việt Nam Asset Management Company (VAMC) to sell bad debts since the country lacks a real debt trading market.

In the face of this situation, many banks have to settle bad debts on their own and resort to buying back debts they had sold to the VAMC.

Việt Nam International Bank for instance paid VNĐ1.336 trillion to buy back its bad debts, bringing down its bad debt amount with the VAMC by 30 per cent.

Earlier Vietcombank bought back the entire amount of bad debts it had sold, worth VNĐ4.3 trillion, and wrote them off at VAMC.

Many other lenders have done the same, including Sài Gòn Commercial Bank, which reduced its bad debts at the VAMC from VNĐ17 trillion to VNĐ14 trillion last year.

Ocean Commercial Bank plans to buy back all its bad debts from the VAMC by the end of this year.

The bankers at the meeting sought the People’s Committee’s help to eliminate the legal barriers to the disposal of mortgaged properties and enforcement of verdicts to create favourable conditions for recovering bad debts.

They also called on the central bank to create a legal framework for allowing them to convert the bad debts into equity in their debtors’ businesses.

An SBV spokesperson said the central bank had petitioned the Government to amend the laws on bad debts.

Banks remain keen buyers of government bonds

Last year many banks, especially State-owned ones, partial to government bonds.

The Bank for Foreign Trade of Việt Nam (Vietcombank) invested VNĐ18.04 trillion (US$794.9 million) in them, BIDV, VNĐ22.2 trillion, and Vietinbank, VNĐ14.3 trillion.

Among private lenders, VPBank invested VNĐ55.3 trillion, MBBank, VNĐ52.4 trillion, and VIB, VNĐ26.5 billion.

Market observers said in the first two months of the year the Government successfully issued bonds worth VNĐ54.11 trillion ($2.38 billion) for terms of five to 10 years.

Analysts said the banks preferred the bonds since they were less risky than lending to businesses at a time when the health of many enterprises has not really recovered and banks’ bad debt levels and need for provisioning remain high.

Meanwhile, the secondary government bond market is developing quite strongly and is expected to grow further thanks to some new policies.

Indeed, market liquidity is likely to skyrocket once the State Treasury is able to buy and sell bonds after Circular 10/2017/TT-BTC, issued by the finance ministry last February to supersede an older legal regulation on the bond trading market, takes effect next September.

With respect to the functions of the State Treasury, the new Circular concurs with Decree 24/2016/NĐ-CP issued in April last year.

The decree allows the treasury to buy back government bonds, local bonds and Government-backed bonds with a maximum remaining tenor of three months to make the best use of idle funds.

The treasury will also buy bonds strategically to balance demand and supply and increase liquidity.

As for the lenders, they are in a sweet spot with respect to the bonds. For one, they are awash in liquidity, enabling them to invest in the bonds.

Analysts think the banks’ increasing investment in government bonds is a win-win situation considering the Government needs humongous sums of money for public spending.

Investors hunt for shares paying high dividends

Hậu Giang Pharmaceutical Joint Stock Company (DHG),Việt Nam’s largest drug maker, recently announced a dividend payout of 35 per cent for 2016, 5 percentage points higher than the rate approved earlier.

The company also plans to issue bonus shares at a rate of 50 per cent.

While Coteccons Construction Joint Stock Company (CTD) has not yet announced its profit distribution plans, many investors are keenly interested in its shares since they expect high dividends.

The company achieved a record turnover and after-tax profit of VNĐ20.78 trillion and VNĐ1.42 trillion last year, representing year-on-year increases of 62 per cent and 94 per cent.

Its earnings per share has soared to over VNĐ18,500.

The industry paying the biggest dividends is aviation. For instance, Đà Nẵng Airport Service Joint Stock Company (MAS) recently announced a second interim dividend of 40 per cent for 2016.

Nội Bài Cargo Terminal Service Joint Stock Company (NCT) has announced a payout rate of 106 per cent.

Hunting for shares of companies paying big dividends is a familiar practice on the stock market before the annual shareholders’ meetings season begins.

Analysts explained this rush by saying investors think companies paying good dividends run their business efficiently, have good management and manage their cash flows well.

But other analysts warned that investors should focus not just on the dividends but also the companies’ actual prospects.

After all, some companies pay big dividends but their turnover and profits keep falling.

The Nội Bài Cargo Terminal Joint Stock Company is one such. Despite its 106 per cent dividend payout in 2016, the firm’s shares fell by 40 per cent after its profit declined by nearly 14 per cent.

The analysts said short-term investors often focus on dividends but savvy, long-term investors always attach importance to the growth potential of a company.

They focus on shares whose value has grown steadily over the years as have assets, turnover and profits.

To make informed investment decisions, investors should carefully study the accounts and business activities of a company, they suggested.

Inflation concerns

According to a report from the General Statistics Office (GSO), inflation has been rising in recent months.

In the first two months the consumer price index (CPI) has risen by 4.96 per cent year-on-year. It was up 0.21 per cent in February and 4.65 per cent compared to the same month last year.

A CSO official said the inflation target of less than 4 per cent this year is already under pressure, since the prices of some products and services like power, education and healthcare would be adjusted based on approved roadmaps.

Market observers said the upward trend in global oil prices and the rising dollar also put pressure on prices in Việt Nam.

Energy prices are predicted to rise again as OPEC members and major exporters have come to an agreement to cut production, contributing to inflation in many countries including Việt Nam.

The US economy has shown signs of strong recovery and the country’s central bank, the Federal Reserve, has started to increase interest rates, causing the dollar to appreciate, including against the Vietnamese đồng.

This trend is expected continue.

Besides, the US’s withdrawal from the Trans-Pacific Partnership has hit Việt Nam’s exports, meaning there has been a drop in the supply of greenback in the market.

Both factors are expected to put upward pressure on prices in Việt Nam.

However, while many expressed concern about a possibility of high inflation, others are more sanguine, saying there are no such signs yet.

They contended that in 2017 aggregate demand, an important factor in inflation, is unlikely to go up.

Many local and foreign organisations estimate economic growth this year to be only around 6.3 per cent, the same as last year.

In the absence of rapid economic growth, high inflation is improbable, they explained.

This means the National Assembly’s goal of containing inflation at 4 per cent can be achieved. 

Thua Thien - Hue attracts 140 investment projects

Industrial zones in Thua Thien - Hue provinces attracted three projects in the first quarter of this year, raising the total number of projects to 140 with a total registered capital of VND64.3 trillion (US$2.83 billion) including 35 foreign direct investment (FDI) projects worth US$1.74 billion. 

To achieve the target of attracting 20 projects investing in industrial and economic zones this year, Thua Thien - Hue will focus on administrative reforms and creating favourable conditions for investors.

Almost all industrial zones in the province have been filled with projects including 98.5% of the Phu Bai Industrial Zone; 74% of the Phong Dien Industrial Zone and its expanded area; 42.5% of the Phu Da Industrial Zone, among others.

Notably, the province is establishing a Phong Dien garment and textile supporting industrial zone with an area of 400ha to attract investors in this field.

The province prioritises attracting projects using advanced technology in the Phong Dien Industrial Zone, which will be provided with a full financial support for the clearance of unexploded ordnances left from the war in addition to tax and banking loan incentives.

Enterprises investing in industrial and economic zones in Thua Thien - Hue will be offered with many preferential policies and investment support related to land clearance, land lease, clearance of unexploded ordnances, electricity and water supply, vocational training, tax incentives, and administrative procedures, among others.

The province is boosting infrastructure improvement and investment promotion to foreign countries to attract more investors, contributing to local economic development.

Binh Dinh targets 4.5 bln USD in exports in five years

The central province of Binh Dinh aims to earn more than 4.5 billion USD in export revenue between 2016 and 2020, according to Chairman of the provincial People’s Committee Phan Cao Thang.

He said Binh Dinh, part of the central key economic region, hopes to export 611 million USD worth of agricultural products, nearly 2.08 billion USD worth of forestry products, and 466 million USD worth of aquatic products in the five years.

While mineral and construction material exports are expected to bring home at least 254 million USD, the province looks to gain over 1.1 billion USD from the shipment of processed and consumption products.

To that end, Binh Dinh is working to boost the production of goods with high added value and gradually reduce the export of raw materials, he said, adding that it will encourage technology transfer to increase the application of modern production lines, thus raising productivity and product quality.

More efforts will be spent on seeking new markets for such minerals as titanium and granite, promoting investment in animal feed, steel and plastic pipe manufacturing, and facilitating logistics services serving export activities.

Administrative reforms, support policies for export, human resources training, and assistance to improve local producers’ competitiveness will be stepped up. Meanwhile, activities to promote trade, investment and tourism will also be enhanced, the official added.

In 2016, Binh Dinh raked in 730.5 million USD from overseas shipments, a year-on-year increase of 4 percent. The figure reached 179.1 million USD in the first quarter of 2017, up 7.2 percent from a year earlier.-

DongA Bank recoups VNĐ504b-worth bad debts in Q1

DongA Bank has consistently delivered a steady performance under the State Bank of Việt Nam’s special supervision, helping it recoup non-performing loans (NPLs) worth VNĐ504 billion (US$22.1 million) in Q1 2017.

As a result, DongA Bank has recovered NPLs worth some VNĐ4.7 trillion since August 2015 when it was put under the central bank’s special supervision due to weak performance.

The bank’s total assets up till March 31, 2017 inched up 0.23 per cent to VNĐ74.2 trillion.

Its mobilised capital rose 2.43 per cent against early this year, of which savings from individuals increased 2.87 per cent.

Liquidity of the bank was ensured with liquidity coverage ratio reaching 22.3 per cent against the 10 per cent safe ratio regulated by the central bank.

Service activities earned the bank VNĐ127 billion and revenue from remittances was $405 million in Q1. 

Nghe An builds seafood processing centres

Some 14 seafood processing clusters covering 78.83 hectares have been invested in the central province of Nghe An so far to promote production efficiency for local fishermen.

The move is to push the development of seafood processing and preservation while creating jobs and increasing income for locals.

Enterprises have built large-scale aquatic processing establishments in coastal districts, including a fish powder processing plant in Dien Hung commune, Dien Chau district with a capacity of 150 tonnes of raw materials per day and revenue of 220 billion VND (9.7 million USD) per year.

Royal Foods’ Nghe An canned fish processing plant was located in Nghi Loc district and Northern Masan Food Industry Centre was also built at Nam Cam industrial park.

With 82 kilometres of coastline, Nghe An has high demand for seafood processing estabishments. However, the construction has been hampered by capital shortage, land clearance and unstable supply of materials for processing.

The province is completing mechanisms encouraging the investment in infrastructure, environmental treatment systems and other conditions in the aquatic processing clusters, facilitating firms’ sustainable development. It also zones off processing areas and forms offshore high-capacity fishing vessels to increase productivity.

High-tech agricultural tourism attracts visitors

Da Lat resort city in the central highland province of Lam Dong has recently attracted a great number of visitors with high-tech agriculture, clean vegetable gardens and fruit gardens.

The garden covering on an area of more than 3,000 square meters of farmer Le Huu Phan in the Ward No.9 receives  hundreds of tourists every day. Phan is known for his garden of giant pumpkins, originating from America, black tomato, cherry tomato and other strange fruits and vegetables.

Vuong Dinh Phi’s strawberry garden at Thanh Mau Street is one of the first gardens in Da Lat to permit tourists to visit and pick their own fruit.

Tens of households on Thanh Mau Street in the Ward No.8 have combined traditional agricultural production and ecotourism. Tourists can visit high-tech gardens of artiso, strawberry, vegetables, potato, and flowers; learn about growing clean vegetables model; pick and buy high-quality and clean products directly at the gardens.

The model of high-tech agricultural tourism has been implemented in Xuan Huong Street in the Ward No.9 and Trai Mat in the Ward No.11 under the permission by the provincial People’s Committee.

According to Head of the management department of tourism under the Department of Culture, Sport and Tourism of Lam Dong Province,  lack of professional tourism skills and unstable combination between farmers and travel units are two of the problems that can not boost the development of the model of high-tech agricultural tourism.

The provincial authorities will focus on training tourist business skill for gardeners, building homestay tours to bring economic benefits to growers but also contribute to tourism development in the province, he added.

Online business’ fast development urges traditional trading changes

Traditional trading is under pressure of better changes to compete with online business, which has developed quickly with the advantage over traditional trading and foreign factors in investment and management.

Customers in HCMC have got acquainted with e-commerce and other new tech application trading types such as transport services with Uber and Grab and Vietlott for recent years.

At present, e-commerce posts 22 percent growth rate a year, much higher than 10 percent of the retail industry. The e-commerce market value of Vietnam touched $4 billion last year, forecast to hit $10 billion in the next five years by E-Commerce and Information Technology Bureau under the Ministry of Industry and Trade. 

Vietnam now has 91 million people, of whom 45 percent have accessed the internet with HCMC and Hanoi accounting for 28 percent. An internet user in Vietnam spends $160 a year on online shopping on average. 

Reports by Vietnam E-Commerce Association show that 32 percent businesses established trading relations with foreign partners on the internet and 11 percent attended e-commerce by the end of 2016. 

There are opinions that the country’s e-commerce growth rate might be much higher than the reported numbers. Last year, Lazada group alone saw the volume of orders sextuple 2014. It is said receive an average of 15,000-20,000 orders a day. 

Tiki Company revealed that the number of successfully implemented orders has been triple and quadruple for the last one year. 

E-commerce has made up few percent in the total retail revenue of the country. With the current momentum, the field is forecast to continue growing stronger to enter a drastic competition with traditional tradings. 

Many large distribution system such as Saigon, Co.op, Big C, Lotte Mart, Aeon and Vinmart have positively implemented online sales in preparations for the fiercer competition.

Coming to Vietnam since 2014, Uber quickly became a new phenomenon in transport trading field after a couples of months. The number of Uber drivers and passengers have quickly increased, concerning taxi companies who have said Uber’s competition unfair. 

So far the operation type of Uber has been a matter of controversy. If being a tech product, Uber will pay taxes for 20 percent of its percentage revenues. If being a transport service, the company must declare its entire revenues. 

Taxi firms has improved their services to compete with the convenient and low cost transport service. For instance they have provided customers with information about waiting time and drivers’ phone numbers. 

However, the biggest weak point of taxi firms now is high fare. In addition, some drivers have intentionally carried customers around to increase the payment or has showed uncomfortable attitude or complaint when passengers travel over a short distances. 

Taxi firms’ operation and regulations have been rigid and uncompetitive for a long time, needing changes to catch up with the common development trend and meet increasing travel demand of citizens.

Mr. Nguyen Ngoc Hoa, deputy director of the Department of Industry and Trade, said that market competition required businesses to taking initiative in improving their competitiveness by lowering prices and improving service quality. 

They should address their weak points and repair them. For instance, taxi firms are now applying a fixed fare list while Uber prices are flexible depending on timing.

 He advised businesses to improve their staff’s serving attitude and the transparency of their services to lure customers and pay attention to small demands of customers to better serving them. 

According to Mr. Hoa, it is time for authorized agencies to debate suitable policies covering tax and insurance to create a fair playground for businesses, encourage traditional trading changes and not limit new trading types. 

Uber is just an outstanding case of tech application in management. There will be other types of services developed online and across the border creating severer competition. If companies in traditional trading fields do not change to suit new situation, they will find difficulties in competing and integrating, added him.

HCMC to auction nearly 4,000 resettlement apartments in Thu Thiem

The HCMC People’s Committee has said that it would auction 3,790 inventory apartments in the resettlement program of Thu Thiem New Urban Area, District 2 if the Government approve. 

The program has been building 12,500 apartments for resettlement in Thu Thiem. So far, 7,220 apartments have been done and 1,330 under construction. 

Of the built apartments, the committee has received and handed over 2,924 ones to resettled citizens and the remaining number of 3,790 are stock. 

In addition, there are 1,275 inventory housing land plots in Thu Thiem, reported the Management Board of Thu Thiem New Urban Area Investment and Construction to the committee.

 The auction sale of these apartments must be approved by the Government and assessed by relevant ministries.

Over 6,000 Japanese firms explore investment in HCM City

The Japanese External Trade Organisation (JETRO) representative office in Ho Chi Minh City welcomed more than 6,000 Japanese firms to study the investment environment in the southern economic hub in 2016.

Seventy-seven businesses were established after the meetings, JETRO chief representative in HCM City Koji Yamamoto told Vice Chairman of the municipal People’s Committee Le Thanh Liem in a recent meeting in the city on April 18.

Most of the investment projects are being carried out in southern provinces, he said.

According to the municipal Department of Planning and Investment, Japan ranked fourth among foreign investors in HCM City in the first quarter of 2017 with nearly 1,000 projects.

In addition to boosting collaboration between cities and provinces, the two countries are pushing regional cooperation for long-term and sustainable connectivity, Liem said.

Vietnam Motorcycle Show 2017 slated for early May in HCM City

The second Vietnam Motorcycle Show 2017 (VMCS 2017) will take place in Ho Chi Minh City from May 4-7, President of the Vietnam Association of Motorcycle Manufacturers (VAMM) Yano Takeshi said at a press conference on April 19.

This year, the event will draw large brand names including Honda, Piaggio, Suzuki, SYM and Yamaha, as well as major importers such as Benelli, Ducati, Kawasaki, Peugeot and Harley Davidson.

At the exhibition, the manufacturers and importers will introduce over 100 models of different types from commercial and sport bikes to motors and idea models, giving visitors an overview of domestic and world trends.

According to Yano Takeshi, the event, themed “Free your wheels,” is expected to create a breakthrough for the motor industry of Vietnam.

He highlighted that the exhibition will create a chance for manufacturers to overcome all challenges to make better products for customers in Vietnam, the fourth largestmotorbike market in the world.

At the same time, the event will also gather 55 trademarks of support industries and spare part providers as well as relevant industries, including foreign brands including Motul, Bosch, Caltex, Total, Nissin and Quikfix.

A number of games as well as music and fashion shows will also be held.

According to the VAMM, last year, automatic motorcycles accounted for 45 percent of the total sales. The Vietnam’s motorcycle market is predicted to continue growing in 2017, the association added.

Thaco eyes 27 percent of car market share in 2017

The Truong Hai Automobile Corporation (Thaco) has set a goal of selling 58,384 cars in 2017, accounting for 27 percent of the auto market share.

The number includes 28,016 units of Kia, 29,818 units of Mazda and 550 units of Peugeot. 

Meanwhile, the firm hopes to sell 53,636 trucks and buses, up 14 percent against 2016, and marking up 45 percent of the market share.  

The figures were approved at the recent meeting of the firm’s shareholders. 

Apart from commencing the construction of a factory manufacturing Mazda-brand touring cars with a capacity of 100,000 units per year, Thaco has also introduced the commercial minibus Huyndai Solati to the market. 

The firm is implementing a project to develop new products, which will meet emission standard EU IV.

Last year, Thaco sold 110,548 vehicles, up 37 percent against 2015, accounting for 41.5 percent of the Vietnam Automobile Manufacturers’ Association (VAMA) members’ sales.

It also led the market in the year as with 32 percent of the share. 

Thaco has assembled and distributed three brands: Kia of the Republic of Korea, Mazda of Japan and Peugeot of France, with Kia being the best seller in recent years.

High-tech farms for Đà Nẵng

The central city of Đà Nẵng plans seven suburban communes in Hòa Vang District for high-tech farms on a total area of 540ha – a crucial step to boost high quality and safe agriculture.

The director the city’s agriculture and rural development, Nguyễn Phú Ban, said the plan is part of a strategy to develop Đà Nẵng as a safe tourism destination, as well as a centre of nano-industry and world-class high-tech farms.

Ban said the city has allocated 130ha for safe vegetable farming and 310ha for aquaculture and livestock. “The city has recognised 12 farms with certifications of safety and quality, as well as brand names in La Hường and Túy Loan villages. These farms’ products are eligible for sale at major supermarkets in the city,” Ban said.

The city has a total of 50 farms but these provide only 10 per cent of demand for vegetables and farm produce. “We are unable to bring our products to supermarkets in the city because most farmers in the communes have yet to achieve the supermarkets’ required standards of packaging and quality,” said the head of Hòa Tiến Commune’s mushroom farm, Nguyễn Thị Mai Hoàng.

“Our farm has small productivity and limited investment. Our products are only supplied to local residents at rural markets and through vendors,” she said.

A representative of Co-op Mart said the supermarket has strict conditions for local farm produce regarding safety, hygiene, quality and registered labels.

According to the city, all supermarkets welcome "made-in Đà Nẵng" products, but farmers in the city have yet to supply sufficient quality products, including vegetable, seafood and quarantined poultry. The city is supporting local farms in attaining the Việt Nam Agriculture Practice (VietGAP) green label certificate.

According to the city, the introduction of high-tech farm centres could supply enough safe food for the city and tourists. Currently, major vegetables, roots and poultry are provided by businesses from the Central Highlands provinces of Lâm Đồng, Gia Lai, Quảng Nam  and northern provinces.

According to a report by the industry and trade department, the city of 950,000 consumes need145,000 tonnes of seafood and 140,000 tonnes of vegetables per year.

At a meeting earlier this year, vice chairman of the city, Đặng Việt Dũng, said only clear information and products with a recognised certificate of origin (CO) are on sale at wholesale markets and shopping centres in 2017.

Banks to be more demanding in selecting customers     

With credit growth accelerating in the first quarter, many commercial banks may become more demanding in selecting lending customers.

At the end of Q1, average credit growth of the entire banking system hit a six-year high of 4.06 per cent. That is the average rate, so there should many banks with a higher growth rate.

Head of a large-sized bank, who declined to be named, revealed that his bank’s credit growth in Q1 was up to more than 8 per cent. The bank, therefore, would have to re-balance lending to meet credit growth quota of 16 per cent in 2017 allocated by the central bank.

The same trend was also witnessed at some small-sized banks. Sacombank, for example, despite facing difficulties in operation, still announced its lending rose 4.8 per cent in Q1 2017.

With high credit growth rate in Q1, banks’ capital flows would, therefore, show signs of changing, with focus on restructuring customers’ demands and capital use efficiency.

The head mentioned above said as lending rose sharply right from the beginning of the year, his bank would have to be more demanding with projects and borrowing demands as the SBV permits his bank’s whole year credit growth at only 16 per cent. Once quantity was controlled, the bank would invest more in quality.

Accordingly, the bank would screen to lend to more secure projects, with better capital use quality and collaterals. This would further enhance credit quality.

“We have noticed this point, therefore we have tightened. We no longer compete by lending at much lower interest rates compared with deposit rates but focus more on customers with higher capital use efficiency. We also excluded customers who displayed signs that they would borrow from our bank at lower interest rates to deposit in other banks with higher interest rates. With the current good credit growth prospect, I believe this screening will expand in many banks,” the insider said.

He also noted that high credit growth at the beginning of the year in some banks is a good sign of the economy’s demand and is an opportunity to screen customers, but will not lead to 2017 witnessing overheated credit growth because besides the strict control of credit growth room for each member that the State Bank is ensuring, the capacity of banks is also limited.

Early every year, the central bank assigns credit growth for each commercial bank to meet the annual credit growth target of the entire banking system. This year, the central bank plans a credit growth of 18-20 per cent for the entire banking system.

If the SBV does not increase the quotas, commercial banks would not dare to “break” because at the end of 2016, the SBV’s Banking Inspection and Supervision Agency called each member exceeding the assigned quota to warn that if they did not adhere to the regulations, they would be subject to sanctions.

The mechanism of assigning credit growth room to each member is also the basis for the SBV to stand firm against concerns that such a sharp credit increase may put pressure on inflation and generate overheated growth, because, finally, credit growth limit of the whole sector is still controlled by the aforementioned mechanism. 

Preferential loans for manufacturing industry firms     

Domestic enterprises with plans to invest in four key industrial sectors and two traditional fields will be offered low-interest loans worth up to VND200 billion (US$8.8 million) for each project. 

The information was released on Tuesday by the HCM City Department of Industry and Trade at a conference to update enterprises on newly-issued Decision No. 15 of the municipal People’s Committee.

Under the decision, dated March 16, 2017, on financing local enterprises that operate in manufacturing and part supply sectors, the four key sectors are mechanics; chemicals, plastic and rubber; food processing; and electronics and information technology. The two traditional fields are textile and garment, and footwear and leather.

The lending interest rate will not exceed the average level of interest rates offered for 12-month deposits in Vietnamese dong by four commercial banks -- Vietinbank, BIDV, Agribank and Vietcombank.

Hoang Tho Vuong, director of the HCM City Centre for Supporting Industries Development, said the city would cover 70 per cent of the interest rate on loans for construction projects and 85 per cent of the interest for equipment and technology projects.

The maximum duration of the loans would be seven years. 

Last year, the department also proposed that the city’s People Committee set aside VND800 billion to fund 12 projects in supporting industries. 

However, most of the projects belonged to large enterprises, even as 95 per cent of firms which operated in supporting industries were small and medium-sized enterprises (SMEs), director of the HCM City Department of Industry and Trade Pham Thanh Kien said.

Therefore, Kien asked associations of enterprises that are eligible for the support programme to get acquainted with Decision No 15, especially SMEs which often face difficulties seeking loans due to shortage of land or project-developing skills.

To realise the policy, the department and the Viet Nam Joint Stock Commercial Bank for Industry and Trade (VietinBank) signed an agreement to implement a programme providing credits to manufacturing and parts supply enterprises.

Accordingly, the enterprises could access a credit package worth VND10 trillion.

The programme encourages local firms to renovate equipment, enhance production capacity to replace imports and add value to their products. 

According to a VietinBank representative, the programme will provide loans for industry and support industry projects at soft interest rates from April 14, 2017. 

In addition, the city’s Centre of Supporting Industries Development and VietinBank’s HCM City branch will offer consultations to enterprises during the programme. 

Information is available for enterprises at https://csid.gov.vn and www.vietinbank.vn. 

Newly-launched website https://csid.gov.vn also serves as a database for the supporting industry of the city and a source of information for enterprises to seek partners and expand links with local and foreign firms. 

The supporting industry is one of key sectors prioritised for development by the Government, with Viet Nam’s economy moving toward deeper international integration through various trade deals. 

Vinachem strives to increase revenue, production in Q2

The Việt Nam National Chemical Group (Vinachem) is targeting a 15.6 per cent increase in its industrial production value to more than VNĐ12 trillion (US$526.3 million) in the second quarter of this year.

The group also aims for a modest rise of 4 per cent in revenue to over VNĐ12.7 trillion in Q2, the Voice of Vietnam reported.

In the first quarter of this year, Vinachem focussed on enhancing its production capacity, accelerating exports while speeding up implementation of its under-way projects.

During the reviewed period, the group’s industrial production output saw a yearly increase of 5 per cent to VNĐ9.68 trillion. Its revenue surged 6 per cent year-on-year to VNĐ10.1 trillion.

Under the 2016-20 restructuring scheme submitted to Ministry of Industry and Trade (MoIT), Vinachem has sought the approval of the Prime Minister and MoIT to allow the corporation to divest from member companies to ensure feasibility and efficiency.

The chemical group is set to carry out equitisation from now to 2019 and proposes that the Government retain a controlling stake of between 51 per cent and 65 per cent after equitisation. It also plans to raise its charter capital by VNĐ5 trillion through a share issuance during equitisation.

Vietjet flight attendants among five most attractive globally

Low-cost carrier Vietjet ranks second in the list of five airlines having the most attractive flight attendants.

The ranking, selected by Canada VIVA Lifestyle and Travel – the fastest growing digital media company for Millennials in the world – also includes Emirates, Air France, Air Serbia and Singapore Airlines.

“The ingenious bikini uniforms debuted by Vietjet last year made their CEO the first female billionaire in Việt Nam, although that’s not the only reason for their success,” VIVA Lifestyle and Travel said.

“The employees have the option of donning the newer style of uniform, or to stick with the more traditional style; but given that many of their flight attendants could well be models, it really does not matter which one they choose,” it said.

Over past years, Vietjet has been seeking dynamic and customer-focussed candidates to be qualified as the airline’s friendly and professional flight attendants, in order to keep pace with the rapid development and expansion of its domestic and international networks.

Successful candidates have opportunities to attend intensive training courses in Việt Nam and other foreign countries and enjoy an attractive income and many other benefits as well as unlimited promotion opportunities within the group.

Thai Binh declares 1,100 areas not available for mining

The northern province of Thai Binh has recently declared more than 1,100 restricted areas that can no longer be mined, in a bid to control local mining activities.

The provincial People’s Committee issued a decision to prohibit mining in these areas, covering over 7,900 hectares, until 2025 in compliance with the Law on Minerals.

The restricted areas include waste treatment plants, waterworks, cultural and historical relics, tourist resorts, coastal protective forests, mangrove forests, lands for religious groups, and for security and defence purposes, roads, irrigation lands, lands under power lines, oil and petroleum depots, and thermoelectric plants.

The province also put temporary restrictions on 657 locations, 617 of which are nature reserves, cultural and historical relic sites and tourist hotspots, with the other 40 areas for defence purposes.

It released an urgent notice on April 11 to tighten control on sand exploitation in local rivers in which it asked communes and districts to end illegal sand mining.

The local authorities have licensed sand mining in 11 locations along Red River in Hung Ha, Vu Thu, Kien Xuong and Tien Hai districts, with mining only permitted between 6:00 am and 18:00 pm. The local People’s Committee also requested river sand mines to suspend operation from April 30-August 31 and during storms and floods. 

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