VN, Thailand head to trade value of US$20 bln by 2020

Viet Nam-Thailand trade turnover is expected to reach US$20 billion by 2020 thanks to the two Governments’ determination and the proactiveness of the two sides' businesses.

Deputy Minister of Industry and Trade Do Thang Hai made that statement at a conference themed “Viet Nam-Thailand trade and investment embrace the potential of Strategic Partnership”, which was held by the Vietnamese Ministry of Industry and Trade and the Thai Ministry of Commerce on May 23.

As of January 1, 2015, Viet Nam has reduced 8,600 tariff lines to 0% and will make the same to the rest of 669 tariff lines by 2018. Currently, more than 9,500 tariff lines were listed in the tariff reduction schedule as committed in the ASEAN Trade in Goods Agreement.

The two Governments are actively cooperating to realize measures to support businesses to take full advantages of preferential for enhancing exports.

In the future, the Vietnamese Government will issue policies to develop the auxiliary industry and production of materials to connect Foreign Direct Investment (FDI) businesses with domestic ones, said Mr. Hai.

Viet Nam was the second largest trade partner of Thailand in ASEAN and Thailand was the largest trade partner of Viet Nam.

A cooperative agreement was inked between the trade and investment promotion center for development of industry and trade, under the Ministry of Industry and Trade and Thailand’s Kasikorn Bank.

As of the end of 2016, Viet Nam-Thailand trade value was estimated at US$12.5 billion, up nearly 9% against in 2015.

By the end of March 2017, Thai investors poured US$8.13 billion in 458 projects in Viet Nam, ranking 10th among 115 nations and territories.

Trade ministry pledges to handle loss-making projects

The Ministry of Industry and Trade said it would resolutely handle loss-making projects and affirmed that the State would not finance these projects anymore.

Data shows that 12 massive projects managed by the ministry are moving at a snail’s pace or operating poorly with total accumulated losses of more than VND16 trillion as of the end of 2016. They include four fertilizer plants, three bio-fuel projects, two steel projects, Dinh Vu polyester fiber factory, Dung Quat Shipbuilding Industry Company Limited (DQS), and Phuong Nam paper pulp mill.

Currently, six active projects are running at a loss (the four fertilizer plants, DQS and Viet Trung Steel Plant), three are being put on hold because of cost overruns and shortage of operating capital (the bio-fuel project in Phu Tho, phase 2 of the expansion of Thai Nguyen Iron and Steel Complex and Phuong Nam paper pulp mill), and the other three have stopped production due to ballooning costs and big losses (the bio-fuel projects in Quang Ngai and Binh Phuoc and Dinh Vu polyester fiber factory).

The Ministry of Industry and Trade has proposed solutions to the aforesaid loss-making projects in 2017. The project owners must concentrate on resolutely settling the outstanding problems of these projects, particularly the troubles with engineering-procurement-construction (EPC) contractors.

The groups and corporations concerned along with the project owners must strengthen their management and take measures to cut costs of management, labor and inputs, and improve corporate governance to cut losses and make profit in the future.

The trade ministry wants these solutions to be soon adopted to put an end to the poor performance of such projects.

In 2017, the ministry will complete a plan for submission to competent authorities for approval, implementation and making changes in the operation and finance of these projects. It will strive to bring about fundamental changes in dealing with the shortcomings and weaknesses of these projects by 2018.

Also, the ministry will clarify the responsibilities of and strictly handle those organizations and individuals that commit violations in the course of investment and operation of projects which have suffered losses.

In addition to the above 12 projects, the Ministry of Industry and Trade will continue reviewing the projects under its management that are at risk of causing losses. The ministry will then suggest appropriate and timely solutions, contributing positively to the overall development of the economy.

The total initial investment of these 12 projects was some VND43.67 trillion, which was later adjusted up 45.65% to VND63.61 trillion. Of this sum, VND14.35 trillion, or 22.56%, was their equity, while loans made up 74.6%, about VND47.45 trillion, and the remaining 2.84% came from other sources.

The accumulated losses of the 10 projects that are operational or have stopped production had totaled over VND16.12 trillion as of end-2016, with total liabilities of more than VND55.06 trillion

The total disbursed capital of the three incomplete projects had been around VND8.61 trillion compared to the estimated VND13.06 trillion.

Egg price makes turnaround

The chicken egg price has increased in the past five days after a period of falling, said farm owners and enterprises trading in chicken eggs.

The price of eggs increased by VND300 to VND1,100 each on average, said Nguyen Phuong Sang, owner of a farm with 45,000 egg-laying hens in Long Khanh District, Dong Nai Province. His farm supplies 38,000-40,000 eggs a day to HCMC, Dong Nai and some central provinces.

However, the increase still cannot save farmers from losses due to the high production cost estimated at VND1,400 an egg and the sharp fall to VND900 an egg that had persisted for a long time.

Trinh Duc Khoa, director of Trinh Dang Khoi Co Ltd with a farm in Vinh Cuu District, Dong Nai Province, said the price of eggs ranges from VND1,100 to VND1,300 each, an increase of VND200 compared to the previous week. Khoa expected to earn some profit due to the fall of chicken feed prices.

At present, Khoa’s farm has over 100,000 hens, supplying 90,000-100,000 eggs a day to markets, companies, factories and schools.

Truong Chi Thien, director of Vinh Thanh Dat Food JSC in HCMC’s District 12, said the egg price increased by VND300 each. Specifically, grade-A eggs sell for VND1,500-1,600 each. However, the company has to purchase mainly grade-B eggs at VND1,200 each due to the scarcity of grade-A eggs.

Thien suggested that farmers build a long-term business relationship with traders and distributors to sell products at stable prices.

Livestock feed producers, traders in hot seat

As farmers have sold pigs at a loss, livestock feed producers and traders have found themselves in the same boat as it is increasingly difficult for them to sell their products and collect debt owed by farmers.

Nguyen Hong Van, a feed trader in the southern province of Dong Nai, hoped the price of live pigs would recover quickly so that famers could pay their debts owed to him at the end of the year.

A financial report of Vietnam Livestock Corporation shows its sales and service revenue reached a modest VND56.6 billion in the first quarter of the year, compared to around VND96.3 billion in the year-ago period.

In its official letter to the State Securities Commission, the corporation attributed its profit decline to tumbling pig prices in the period.

It has no choice but to reduce the price of breeder pigs sold to farmers. As a result, its revenue is more likely to decrease further in the remaining quarters of the year.

Large companies are having difficulty maintaining their sales revenue given the low pig price, according to the Animal Husbandry Association of Dong Nai Province

Pham Duc Binh, the association’s vice chairman, said many farming households have cut feed rations for their pigs so they could barely gain weight in recent months. If the situation drags on, livestock feed producers would suffer substantially.

The total import turnover of feed products and raw materials in January-April reached US$1.19 billion, a rise of around 30% over the same period, according to the Ministry of Agriculture and Rural Development.

This means that domestic sales revenue declined, but enterprises still purchased a large quantity of ingredients for livestock feed production in the coming months.

HCMC seeks to fight online sales tax evasion

The HCMC government has ordered relevant agencies to implement a host of management solutions to fight tax evasion among online vendors as the taxman has collected little despite the upsurge of online sales in the city.

In a correspondence issued last week, the municipal government asked several departments to tighten management of online sales to ensure adequate tax collections.

Specially, the departments of industry-trade and information-communications are told to provide tax agencies with a list of e-commerce websites involved in online sales, e-commerce transactions, online auctions and promotion platforms.

Besides, they are tasked with scrutinizing payment methods by organizations and individuals such as payment via banks, and credit cards among others.

The HCMC Police Department shall provide tax agencies with e-commerce websites whose owners have yet to pay taxes despite their ongoing business activities, thereby facilitating the taxman to collect taxes in line with the prevailing regulations.

Meanwhile, the HCMC Tax Department is responsible for informing such website owners of their tax obligations, and tax policies regarding e-commerce business activities. Especially, it will coordinate with media agencies to publicize the names of organizations and individuals found to have evaded tax.

There are currently around 80,000 e-commerce websites registered in the city, with half of them having been operational for years, according to the Department of Industry and Trade.

A representative of the HCMC Tax Department said it is almost impossible to determine exact revenues and profits of online vendors as a majority of online shoppers prefer paying by cash on delivery, leaving no trail for tax collectors to determine the value of a transaction.

Trade deficit exceeds US$3 billion

Vietnam’s trade deficit in the first half of May alone hit nearly US$1.1 billion, taking the total this year to a little more than US$3 billion, according to data of the General Department of Vietnam Customs. The trade gap was equivalent to 4.3% of the country’s export turnover.

So far this year, the country’s exports have brought in nearly US$69.7 billion, up 17.6% year-on-year, while import spending has surged 25% to over US$72.71 billion.

Notably, while export earnings in the first half of May fell sharply compared to the half month earlier, import expenditures rose strongly.

The export decline is attributable to strong slides in the export of key products. Phones and phone parts plunged by 30.7%, or US$780 million, while textile products had tumbled 20%, or US$199 million. Computers, electronic products and components, and machinery, equipment and accessories fell by 13.1% (US$132 million) and 19.1% (US$111 million) respectively, said the customs agency.

Only some commodities saw export growth, such as coal with a rise of US$20 million, and fruits and vegetables with a 4.1% increase, or US$7 million.

On the other hand, imports in the first half of this month soared over the second half of April. Specifically, import of animal feed and materials increased by a sharp 40.3% or US$49 million, fabrics 12.6% or US$62 million and plastic materials 16.1% or US$44 million. Import of vehicles and accessories was 1.6 times higher than a fortnight earlier, equivalent to US$40 million.

According to the General Department of Vietnam Customs, the widening trade deficit this year mainly resulted from domestic businesses. The foreign direct investment (FDI) sector gained a trade surplus of US$5.41 billion.

Vietnam explores cooperation with Pacific Alliance

Vietnam and the Pacific Alliance (AP) which groups four Latin America countries are exploring the possibility and potential to push up economic cooperation given the fact that the Trans-Pacific Partnership (TPP) trade agreement can be revived.

AP is a Latin American trade bloc with deep integration among member countries, namely Chile, Colombia, Mexico and Peru.

At the seminar “The Pacific Alliance and Vietnam in the Global Context” in Hanoi on May 22, Vu Quang Minh, secretary to Vietnam’s Minister of Foreign Affairs, said AP is a young organization which was established six years ago, but has quickly grown and impressed many countries in the world.

AP members have waived visas for each other’s citizens since November 2012, established a common fund, and gradually brought their free trade agreement into effect.

AP members have reduced tariffs on more than 12,000 products and services (92%) and are expected to remove all tariffs on goods and services by 2020, Minh added.

The alliance is becoming stronger with a population of nearly 220 million people and a per capita income of over US$6,000. It has fostered strong cooperation ties with countries in not only Latin America but also in Asia-Pacific and around the world.

Economic and especially trade cooperation between Vietnam and four AP members have grown steadily with an annual increase of 15-20%. In 2016, bilateral trade between Vietnam and AP reached more than US$7 billion, accounting for over 50% of Vietnam’s total trade with Latin America.

Vietnam and AP also have cooperation links when participating in TPP, Minh said.

At the seminar, director of Asia, Africa and Oceania of the Colombian Foreign Ministry Alfredo Ramos said TPP once revived will help boost trade between Vietnam and AP. Besides, the seminar is aimed to introduce potentials and opportunities of cooperation between Vietnamese and AP enterprises.

However, he also mentioned many barriers between the two sides in economic cooperation, especially geographical distance in the absence of effective transport routes.

LienVietPostBank to buy Sacomreal bonds worth $22 million

LienVietPostBank has approved a plan to buy VND500 billion ($22 million) worth of bonds at a company belonging to Sacombank’s founder and his family, the first move in a long-term partnership between the two, a source close to the matter told VET.

Founded by Mr. Dang Van Thanh during his time at Sacombank in 2004, real estate developer Sacomreal will issue VND500 billion ($22 million) worth of bonds with a 42-month tenure to LienVietPostBank at an interest rate lower than what Sacomreal anticipated.

The interest rate, though, reflects the credibility and efficient use of capital in a project LienVietPostBank has evaluated, the source said.

The agreement between the two may shed light on the restructuring process of one of Vietnam’s five weakest banks, which is set to hold its annual general meeting on May 26.  

A senior executive at LienVietPostBank resigned from his post in April and then withdrew from a list of candidates for the new Sacombank Board for the 2017-2021 term, together with a representative from the State-owned Vietcombank.

Mr. Nguyen Van Huong, the recently-resigned Deputy Chairman of LienVietPostBank, is the Deputy Chairman of the one-year old Vietnam Macadamia Association, a social and professional organization co-founded by LienVietPostBank and real estate giant the Him Lam JSC, which holds more than 30 per cent of LienVietPostBank.

It is still unclear why Mr. Thanh withdrew from the list of candidates for Sacombank’s new Board, even though in a statement sent to the central bank earlier this year he proposed participating in the restructuring process of the bank, which he founded in 1991 alongside local and foreign groups and individuals such as the New York-based investment bank Evercore Group and M&A consultants Redsun Capital Limited.

One point of note is that Mr. Thanh had previously planned to acquire LienVietPostBank in 2012. At the bank’s annual general meeting in 2013, Chairman Mr. Duong Cong Minh, who owns 99 per cent of Him Lam, revealed that Mr. Thanh and his family were looking for 6 to 7 per cent of LienVietPostBank at VND20,000 ($0.88) a share after being excluded from Sacombank.

The plan never come to fruition, as Mr. Thanh and his son were briefly held in custody at the end of 2012 while an investigation was conducted into his time at Sacombank, the sale of bank assets, and the family’s outstanding debts. They were released after 48 hours and cooperated fully with authorities.

The case faded from the headlines and wrapped up without a formal conclusion. Sacombank leaders then announced a purchase of 80 million Sacombank shares, worth VND1.6 trillion ($73.4 million), from the family, in a bid to “clear up the credit and bonds that remained valid among related parties.”

At the end of 2016, Mr. Thanh son, Mr. Dang Hong Anh, was the largest shareholder in Sacomreal, with a 10.95 per cent stake, while his family business, the Thanh Cong Group, held 4.91 per cent, according to Sacomreal’s 2016 financial report.

Having recorded consolidated after-tax profit of VND23 billion ($1 million) during the first three-month of this year, up 142 per cent year-on-year, Sacomreal is currently among Vietnam’s Top 10 real estate developers. Revenue from its real estate business increased VND12 billion ($528,840) year-on-year, while financial income rose VND53 billion ($2.3 million) to VND119 billion ($5.24 million) as at March 31.

Flawed regulations on handling collateral hinders bad debt settlement

Flawed legal regulations on collateral for debt collection have hampered bad debt settlement, participants said at a workshop in Hanoi on May 23.

The problem was pointed out by National Assembly (NA) deputies at the event held by Dai bieu Nhan dan (People’s Deputies) newspaper.

The State Bank of Vietnam (SBV) reported that the credit institution system handled 616.7 trillion VND (27.18 billion USD) of non-performing loans (NPLs) as of January 2017. The sum of handled bad debts has increased each year, from 74.68 trillion VND (3.29 billion USD) in 2012 to 118.49 trillion VND (5.22 billion USD) in 2016. Bad debts settled in January 2017 alone were valued at 5.14 trillion VND (226.52 million USD).

NPLs settled by credit institutions themselves were 349.7 trillion VND (15.41 billion USD), accounting for 56.7 percent of total bad debts. The remaining 43.3 percent were sold to other organisations and individuals.

About 53.24 trillion VND (2.35 billion USD) of debts collected through the Vietnam Asset Management Company (VAMC) from 2013 to March 31, 2017 were solved.

However, only 17.1 trillion VND (753.6 million USD) or 2.8 percent of the handled NPLs was collected through selling collateral, the SBV said.

Legal regulations did not protect the rights of credit institutions and VAMC and hindered the development of a bad debt market which includes sales and purchases of bad debts guaranteed by land use rights and land assets.

Legal regulations on collateral settlement haven’t ensured creditors’ rights to collateral seizure. Meanwhile, it takes up to two years to solve bad debts and collateral via courts, making expenses account for 29 percent of collected debt value.

At the workshop, participants said that if credit institutions can’t seize collateral will it substantially influence their debt collection capacity.

Nghiem Xuan Thanh, Chairman of Vietcombank’s board of directors, asked courts to streamline procedures for resolving disputes over collateral. He also called for police assistance in dealing with debtors who intentionally dodge debt repayment obligations. 

Nguyen Duc Kien, Vice Chairman of the NA’s Committee for Economic Affairs, said the NA Standing Committee and the economic committee agreed on the need to issue a resolution on bad debt settlement, which is expected to be approved at the NA’s ongoing third session.

Dong Nai attracts 483 million USD in FDI so far

The southern province of Dong Nai has attracted nearly 483 million USD in foreign direct investment (FDI) so far this year, funding 26 new and 38 existing projects, according to the provincial Department of Planning and Investment.

The FDI mostly came from Asian countries, including the Republic of Korea, Japan and Singapore. Some projects came from the British Virgin Islands and Germany.

Notably, Pou Phong Vietnam Ltd. invested in a 55 million USD project, while Powerknit Vietnam Ltd. launched a 60 million USD project, both coming from the British Virgin Islands. Long Thai Tu fabric company from the Republic of Korea added more than 50 million USD to its ongoing project in the province.

The Department said that all the projects are in high technology and the supporting industry, using few labourers and causing no environmental damage.

Dong Nai is now home to 1,692 projects with total investment of 30.78 billion USD, including 1,275 valid projects worth 25.94 billion USD.

The FDI projects’ investors are from 45 countries and territories, mostly the Republic of Korea, Taiwan (China) and Japan.

Meanwhile, 15 domestic-funded projects have been licenced so far this year with total investment of 6.92 trillion VND (3.04 billion USD). At the same time, 604 billion VND (28.2 million USD) was injected into five underway projects.

Hanoi aims for 4.5% export growth in 2017     

The capital aims to generate US$11.1 billion from exports this year, 4.5 per cent higher than 2016, the municipal Department of Industry and Trade has said.

To achieve this goal, Ha Noi will continue work on accelerating administrative reforms with special focus on customs, tax and business licencing procedures, as well as draw up effective policies.

Priority will also be given to improving the competitiveness of local enterprises and their export products, and attracting investment for infrastructure that is needed to promote export activities.

The city will also strengthen promotional activities, and provide businesses with more information on international markets and export products. Training sessions will be held for businesses to make them aware about export policies and regulations in Viet Nam and other countries so that they can meet international commitments and overcome trade barriers.

In 2016, the city’s exports rose by a modest 1.5 per cent to around $10.6 billion. The growth was much lower than the 7-8 per cent target set for the year.

This unsatisfactory export performance was the result of a fall in turnover of key export goods such as textiles and garments at $1.4 billion, down 5.7 per cent year on year; computer components at $1.29 billion, down 3 per cent; and farm produces at $889 million, down 8.4 per cent. 

Vietnam, Australia seek energy cooperation opportunities

A forum was held in Hanoi on May 23 with a view to providing Australia with an insight into the real situation of Vietnam’s energy industry and helping domestic firms to explore the possibility of cooperation with Australian partners.

Energy security is a priority of both Vietnamese and Australian Governments. The two countries have been enhancing partnership in industry, education-training and research on energy.

At the forum, co-organised by the Vietnamese Ministry of Industry and Trade and the Australian Embassy, representatives from Australian agencies, organisations and businesses shared their experience and latest technologies in energy.

Deputy Minister of Industry and Trade Ho Thi Kim Thoa said Australia’s strengths in the fields of coal and gas with modern technologies can help Vietnam ensure energy security and protect the environment. Hence, the two nations hold great potential for cooperation in the sphere, she noted.

Janelle Casey, Commercial Counsellor of the Australian Trade and Investment Commission (Austrade), expressed her hope that through the event, the two sides will understand better about cooperation opportunities and bolster linkages in energy, trade and investment.

Report released by the Ministry of Industry and Trade showed that commercial electricity growth has been on the rise over the past 15 years. Demand for electricity also strongly increased, growing by 13% in 2006-2010 and 11% in the last five years. It is estimated that the country’s electricity demand will grow about 10% in the next 10 years.

To ensure its energy security, Vietnam has been shifted from an energy exporter to an importer. The country is projected to import 17 million tonnes of coal, accounting for 31% of coal demand to generate electricity in 2020.

Meanwhile, Vietnam also considers the possibility of increasing electricity imports from neighbouring countries such as Laos.

ACA Investments acquires 20% stake in Bibo Mart

Bibo Mart chain stores today (May 23) announced that a private equity fund managed by ACA Investments has acquired a 20% stake in its outstanding shares of common stock.

Founded in 2006, the Bibo Mart baby and mom chain of stores operates under the management of Bibo Mart JSC and specializes in providing products for moms during pregnancy and postpartum and children through six years of age.

The company started out with only two stores in 2006, but now that figure has grown to 120 nationwide.

Thai Binh 1 thermal power plant joins national grid

The first turbine of Thai Binh 1 thermal power plant in the northern province of Thai Binh began supplying power for the national grid on May 23, according to the Electricity of Vietnam (EVN). 

Work on the plant, located in My Loc commune, Thai Thuy district, began in February 2015. It costs a total of over 26.5 trillion VND (1.17 billion USD), of which 85 percent comes from the official development assistance (ODA) of the Japan International Cooperation Agency and the rest is funded by EVN. 

Comprising two turbines with a combined capacity of 600 MW, the plant is expected provide nearly 3.3 billion kWh every year once operational. 

The plant plays a significant role in ensuring electricity for socio-economic development and industrialisation in Thai Binh province and its neighbouring localities.-

Supply chains need reforms to meet importers’ strict standards

Businesses must change their thought about the supply chain and methods to organise it for meeting increasingly stringent standards of import markets, a representative of the Business Association of High-Quality Vietnamese Goods has said.

The association held a workshop on May 23 to help enterprises gain an insight into regulations and standards in countries importing Vietnam’s agricultural products.

Chairwoman of the association Vu Kim Hanh said: “We are facing a challenge of technical barriers set up by import countries. Instead of focusing solely on verifying the quality of final products, developed countries request a whole process to be verified to prevent risks.”

She said each step in the supply chain must have a standard to prevent risks. Meanwhile, both farmers and processors must also strictly comply with the production process.

The business association has established a new set of criteria for high-quality Vietnamese goods so as to help producers satisfy importers’ requirements, she noted.

Hanh also urged state management agencies to make new regulations to assist Vietnamese firms in meeting import countries’ standards.

Nguyen Kim Thanh, a specialist in supply chains and food safety, said European markets require food safety and the farm-to-table chain, as well as producers’ responsibility, to be ensured.

Dao Duc Huan from the Institute for Policy and Strategy for Agriculture and Rural Development said numerous opportunities and challenges will appear for Vietnamese products during the integration process.

Exporters are likely to encounter difficulties posed by import countries’ technical barriers. Therefore, producers and processors must make bigger investments into building and managing safe food-oriented supply chains, he stressed.

APEC 2017 offers opportunities to promote Quang Nam

The meeting of finance ministers from the Asia-Pacific Economic Cooperation (APEC) member economies in the framework of the APEC 2017 in Vietnam, will offer a good chance for central Quang Nam province  to promote its image to domestic and international friends, a local official has said. 

In a recent interview granted to Vietnam News Agency, Chairman of the provincial People’s Committee Dinh Van Thu stressed that Quang Nam is ready for the event, which will take place in Hoi An city from October 19-21 with the participation of over 350 delegates.

From last June, officials from the Ministry of Finance and the APEC 2017 Secretariat had working sessions with the province’s leaders and relevant agencies, and made field trips to Hoi An to determine locations for the event and sideline activities. 

The locality’s representatives also worked with the National Committee on APEC 2017, the APEC 2017 Secretariat and relevant ministries and sectors on the work. 

Attention was paid to improving infrastructure system, ensuring works relating to logistics, security, health care, food safety and communications serving the event, he said.

Thu added that the staff from local hotels and restaurants was provided training courses to better skills in service of international conferences. 

Local agencies and press outlets have launched communication campaigns to raise public awareness of the event. 

Regarding the locality’s efforts to foster multilateral foreign relations, Thu said the work was performed in line with the Party’s guidelines, reaping important achievements across economy, politics and culture. 

Quang Nam established friendship and cooperation with ten localities, including Laos, Cambodia, Thailand, the Republic of Korea, France, and Japan. The locality has also cooperated with diplomatic agencies of foreign countries and international organisations in Vietnam such as the UNESCO, the World Bank, and the Asian Development Bank, and over 70 foreign non-governmental organisations (NGO). 

The province is now home to 135 valid foreign-invested projects with a registered capital totaling nearly 2 billion USD. It attracted about 40 million USD in official development assistance (ODA) capital and 10 million USD in financial aid from NGOs for projects on infrastructure development, social welfare, and natural disaster adaptation. 

International cultural events organised in Quang Nam contributed to introducing its potential and strengths for economic and tourism development. 

Local authorities have worked closely with international organizations to manage and embellish world cultural heritages of Hoi An ancient town, My Son Holly Land, and the World Cu Lao Cham Biosphere Reserve, Thu noted.     

Production improvement needed to fulfill GDP growth target

Deputies to the 14th National Assembly have agreed that the Government should continue creating favourable conditions for investors and boosting production, especially in industry and services, to achieve the tough set GDP growth target of 6.7 percent for 2017.

Speaking on the sidelines of the ongoing NA third session on May 23, deputy Do Manh Hung from Thai Nguyen province pointed out that economic growth has slowed down, while several problems like investment efficiency and bad debt remained unsolved.

So, the GDP target can only be achieved when the whole political system, especially the business community, makes concerted effort, he noted.

He suggested that the Government should promptly tackle any arising problems facing investors as a way to deliver its pledge of creating a favourable investment environment. 

Meanwhile, Do Van Sinh, who represents Quang Tri province, said the Government should pay greater attention to boosting services and industry and tackling banks’ bad debts.

Sharing Sinh’s opinion, Hoang Van Cuong of Hanoi said that the GDP goal poses a real challenge to the economy, as the new growth model, which has no longer relied on exploiting natural resources and investment capital, would generate a slower growth rate for the economy.

Deputy Vu Tien Loc from Thai Binh province stressed that speeding up the institutional reform to absorb capital in society and facilitate fair competition in the economy would support a sustainable GDP growth. 

Loc asserted that mobilizing all resources for the institutional reform and creating a smooth environment for enterprises in operation is the key solution.

In the short term, the Government should strengthen public investment and encourage businesses to expand production, while designing specific plans of action and roadmaps to complete targets in improving the business environment and garnering investment resources in and outside the country. 

Japanese firms eye organic agriculture in An Giang

Japanese businesses have expressed their wish to invest in organic agriculture and agricultural tourism in the Mekong Delta province of An Giang. 

Toshitsugu Hagihara, General Director of Hagihara Company – one of Japan’s leading businesses in organic agriculture, told local leaders at a working session on May 23 that his company wants to plant mask melon in glass houses using Japan’s cutting-edge technologies, in the province.

Hagihara Company will firstly analyse soil samples in An Giang to put forth a suitable cultivation process and then send leading experts to the locality to transfer farming techniques to local farmers, he said.  

If the work proves effective, the company will build factories processing farm produce, helping musk melon and other agricultural products of An Giang penetrate the Japanese market through supermarket chains.  

Although An Giang has favourable conditions for organic agriculture, local farmers have yet to meet requirements of organic agriculture, he said. 

Koichiro Abe, Director of Raycean Company, said Raycean and Hagihara are confident to become An Giang’s important and long-term partner in organic agriculture and agricultural tourism development in order to raise competitiveness of local farm produce. 

Vuong Binh Thanh, Chairman of the An Giang People’s Committee, pledged that local authorities will help the Japanese businesses with legal procedures, promotion and technology transfer. 

He highlighted low-cost labour force and production as advantages of An Giang despite its limitations in infrastructure. 

A project to transfer technologies between An Giang and Hagihara is expected to be implemented in 2017, under which four musk melon farms will be built in Tinh Bien, Chau Doc, Chau Thanh and Thoai Son districts.

Thai investors come to study stock market and listed companies

Vietnam is one of the most interesting markets for investment in ASEAN, Mr. Veraphong Chutipat, Director of the Innovation Investments Program at Rangsit University in Thailand said when he and 30 Thai investors visited Vietnam and researched its stock market and listed enterprises.

“Although there are many challenges, Vietnam also has many opportunities that no market in the region can match,” he believes.

Investors have said that Vietnam has long been considered a top investment destination in ASEAN but it is not easy for international investors to decide to invest in a new market, especially individual investors and small and medium-sized investment funds.

Maybank Kim Eng Securities (Maybank Kim Eng), who accompanied the Thai investors in Vietnam, said they spent three days from May 17 to 19 surveying investment opportunities at the Ho Chi Minh Stock Exchange (HoSE) and met with business leaders from the Phu Nhuan Jewelry Company (stock code PNJ), the Phu My Fertilizer Company (stock code DPM), the Vietnam Dairy Products Company (Vinamilk, stock code VNM), and the MobileWorld Joint Stock Company (stock code MWG), among others.

Vietnam’s stock market is the same as Thailand’s 20 years ago, according to Mr. Chutipat, but is seeing much faster growth than Thailand did at that time.

He also said that major opportunities come quickly and he urged Thai investors to jump into the Vietnamese market.

There is a major barrier to foreign capital flows, he added. When foreign investors want to invest in a sound enterprise they have to make a deal through the over the counter market (OTC) instead of dealing directly on exchanges.

In order to attract Thai investors, he said that Vietnamese enterprises should provide full information about their business results and Vietnam’s business environment.

Vietnam and Thailand are improving their bilateral relations to become strategic partners, with trade to reach $20 billion by 2020. Vietnam will have greater opportunities to welcome indirect funds from Thailand in the future.

Shinhan Bank introduces Digital Branch service

Shinhan Bank Vietnam officially announced its Digital Branch service on May 22, the first time that the service has been launched in Vietnam and allowing customers to access a variety of banking services using tablet devices in their own home rather than having to go to a branch, as previously.

The Digital Branch service is based on South Korea’s Shinhan Bank’s Outdoor Sales System (ODS). It was the first bank in South Korea to develop this service for the global market. The Digital Branch service was studied and integrated into in-depth technologies to ensure optimal performance for retail banking services in Vietnam.

Customers can still perform banking tasks from home, like opening a bank account, applying for a debit card or credit card, registering for loans, and conducting online and SMS banking. The service also provides assistance in calculating financial investments, such as deposits or loans.

“With the goal of becoming a leading digital bank in Vietnam, we are constantly striving to introduce optimal banking services, and the new Digital Branch service is one example of this,” said Mr. Shin Dong Min, CEO of Shinhan Bank Vietnam. “With a technology platform developed from the parent bank and a deep understanding of the needs of customers in Vietnam, Shinhan Bank will digitalize all banking activities, from services and products to working and management processes, to ensure our customers are always served quickly, efficiently and safely.”

In April, Shinhan Bank Vietnam announced that it had agreed to acquire ANZ Vietnam’s retail division. The successful transaction is a major step for Shinhan Bank Vietnam’s development and for the rapid growth of Vietnam’s retail banking sector.  

Winners of Dot Property Vietnam Awards 2017 announced

Winners of the Dot Property Vietnam Awards 2017 have been officially announced, among them the country’s premier developers, projects and companies.

Winners were selected by Dot Property Vietnam and the regionally-focused Dot Property magazine, which evaluated every candidate based on a number of factors created specifically for each individual category.

Among the big winners were Novaland Group and the National Housing Organization, which collected three awards each. Dai Phuc Development and Thang Long Real Group were also among 15 enterprises picking up an award.

Thang Long Home - Hung Phu from Thang Long Real Group was named Best Township Development for a superior design that provides residents with the lifestyle of their dreams. 

Dai Phuc Development was voted Best Developer Dalat, with its La Vallee de Dalat project redefining residential real estate in the region. The development transports residents to a bygone era with the elegant craftsmanship and romantic design found in the project’s French colonial-style homes.

The National Housing Organization, meanwhile, was presented with three awards: Best Developer Hanoi, Best Residential Architecture Design for Dragon Hill City, and Best Condo Development for Imperial Place.

Dragon Hill City has set the standard when it comes to residential architecture design, while Imperial Place meets international standards and features high-quality construction.

In Hoi An, Ixora Real Estate scored two awards for its X2-branded projects, including Best Villa Resort Development and Best Villa Development. The project’s generous ownership scheme and eco-friendly features were cited as two major reasons for its wins. 

Prominent developers the FLC Group and Sacomreal were named as Leaders of Real Estate. The special awards were introduced to highlight developers who go above and beyond and positively contribute to Vietnam’s real estate market.

Organized by Dot Property Vietnam, the country’s fastest growing property portal, the first Dot Property Vietnam Awards 2017 honored the absolute best projects, developers, and companies contributing to the country’s real estate sector.

Dot Property Vietnam has established itself as the country’s fastest-growing portal for property buyers and owners as well as real estate agents. Its listings include houses, condominiums, villas, and land for sale and rent.

Kenton Node mixed-use development set to open

The Tai Nguyen Corporation, one of the leading developers in Vietnam’s real estate market, has held a ceremony to introduce its Kenton Node project at 116A Nguyen Huu Tho, Nha Be district, Ho Chi Minh City.

Kenton Node is one of the largest mixed-use developments in the South Saigon area, with a total area of 84,000 sq m, including a five-star hotel, a high-end retail center, office space, officetels, and residential units, and includes amenities such as an entertainment center, a marina, a riverside walk, parks, a hospital, and an international school.

The total space of the retail podium will amount to 30,000 sq m, with established fashion brands and restaurants and an extensive leisure and entertainment space, including a multiplex cinema, fitness facilities, and children’s entertainment. Its opening is planned for the third quarter of this year.

“Our company implements each project with great responsibility, because we believe that development should not only consists of the physical construction of a property but also create a comfortable living environment,” said Mr. Vu Anh Tam, Chairman and CEO of the Tai Nguyen Corporation. “With Kenton Node, we have paid great attention to architecture and design solutions.”

Tai Nguyen invests in creating comfortable common areas that meet international standards. With the innovative riverside walk, the project will transform the shopping center into a cultural and recreational space for residents of the complex as well as surrounding areas. “We believe that a project of this scale will become a center of attraction in South Saigon and will join the ranks of the most successful shopping and entertainment centers in Vietnam,” Mr. Tam added.

It has signed an exclusive agreement with JLL, appointing it to provide retail consultancy and leasing services.

“As the economy gathers pace, we are seeing a wave of shopping center developments that will introduce very different concepts to cater to a new generation of more demanding consumers that are searching for a genuine retail experience,” said Mr. Stephen Wyatt, Country Head of JLL. “Many retailers and F&B operators have a strong appetite to find good quality, modern, professionally managed retail space. Tai Nguyen Corp. will develop a true shopping and entertainment experience that will attract consumers from far and wide and JLL is delighted to be part of this exciting development.”

“Our continued partnership with Tai Nguyen will enable Kenton Node to benefit from the firm's global service delivery models and will provide them with a real estate solution that is integrated with the needs of a large and diverse property portfolio holding,” said Ms. Trang Bui, Head of Vietnam Markets at JLL.

Retro Nokia phone hits the right buttons on return to Vietnam

Nearly two decades after being crowned the king of Vietnam's cellphone market, Nokia’s classic 3310 has made a successful return to the mobile-crazy country, proving that its charms still work.

The classic talk and text phone, which was reintroduced in a brightly colored version at the Mobile World Congress in Barcelona last February, hit Vietnamese shops on Monday and has already become a phenomenon.

“It has triggered a hunt like when the iPhone first arrived in Vietnam,” said one customer who has been trawling the shops in vain for the revamped model.

Many mobile retailers in Hanoi and Ho Chi Minh City said they had received limited supplies that sold out in a day. An independent shop in Hanoi was sent 20 phones while a retail chain received 500 for its more than 400 outlets.

A source from the official distributor said that supplies will stabilize from next week. Many buyers have put deposits down for the phone, which costs VND1,059,000 (US$46.67).

Retailers said customers are buying out of a sense of nostalgia.

The phone is a powerful reminder of Nokia’s popularity back at the start of the millenium, when the 3310 was one of the most popular models in many markets, including Vietnam.

The original 3310 sold 126 million phones, the 12th best-selling phone model in history. Nine of the top 12 selling models were produced by Nokia.

Many Vietnamese still consider the old model a benchmark for durability and battery life. The new model is designed for 22 hours of talk time and up to one month of standby time, which might heighten the phone’s appeal as a backup for smartphone users.

Analysts hailed the 3310 launch as a smart retro gambit, but one which could overshadow the Finnish company’s re-entry into the global smartphone market. Nokia has also launched four moderately priced smartphones ranging from 139 to 299 euros (US$156-336).

Nokia sold its by-then ailing handset operations to Microsoft for US$7 billion in 2014, leaving it with its network equipment business and a large patent portfolio.

But last year, it gave the Nokia brand a fresh start by licensing its devices brand to HMD Global, a new company led by ex-Nokia executives and backed by Chinese electronics giant Foxconn.

Industry analysts say the revived Nokia 3310 has the makings of one of the hit devices of 2017, appealing to older Nokia fans in developed markets looking for an antidote to smartphone overload, while also appealing to younger crowds in emerging markets.

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