The Ministry of Agriculture and Rural Development has warned shrimp farmers to remain calm and refrain from selling large batches of white-legged shrimps which have been dropping in price.

Due to concerns about falling prices, many farmers in the Mekong Delta have been selling the shrimp at a low price.

The price of 100 white-legged shrimp per kilo in Soc Trang Province is now VND70,000-80,000 (US$3.07-3.51), a drop of VND20,000-30,000 compared to earlier this year. The price of 60 white-legged shrimp per kilo is now only VND100,000.

At these prices, shrimp farmers can only break even or have little profit.

Vo Van Nhut, a shrimp farmer in My Xuyen District in Soc Trang Province, for example, said the latest crop had lost more than VND10 million.

According to experts, the price has been low because several processing companies have been importing smaller shrimps and exporting them, especially to companies in the Chinese market.

In addition, local processing plants are facing fierce competition when exporting to the US market because of cheaper Indian shrimp exports. 

Programme launched to help domestic suppliers meet int’l standards

A new programme was launched in Hanoi on May 24 to help Vietnamese firms become suppliers of multinational corporations and as well as expand operations and improve added values of existing suppliers. 

The two-year programme will help domestic suppliers meet requirements of multinational corporations in terms of quality, prices and delivery, as well as connect with partners. 

The project was launched by the Ministry of Industry and Trade’s Industrial Department and the International Finance Corporation – a member of the World Bank.

Speaking at the event, Deputy Minister of Industry and Trade Do Thang Hai said the move is the first step to improve competitiveness of domestic firms. 

In the next two years, the programme will partner with eight multinational corporations in the fields of automobiles, electronics, energy and consumer goods, including Bosch, Canon, Datalogic, Denso, Ford, General Electric, Panasonic and Toyota. As many as 45 domestic enterprises, as recommended by multinational corporations and trade associations, have been chosen to join the programme. 

Director of Panasonic Vietnam’s Strategy Plan Yamamoto Masahiro said the programme will help boost long-term business cooperation with promising partners and improve domestic supply. 

Ho Viet Tam, Director of the Export Mechanical Tool Jsc, said domestic support industry enterprises would gain opportunities to connect with and join the global value chain, thereby improving their competitiveness. 

Via close consultation with multinational corporations, the programme will also evaluate business opportunities and competitiveness of participating suppliers. 

If successful, similar schemes will be spread in other sectors with different multinational corporations, creating more opportunities for other firms.

Support industry creates driving force for automobile sector

Supporting industry development will create a driving force for Vietnam’s automobile industry, as heard a seminar held by the Vietnam Association of Supporting Industries (VASI) in Ho Chi Minh City on May 24. 

Pham Tuan Anh, deputy head of the Ministry of Industry and Trade’s Industrial Department, said supporting industry helps improve value of domestic goods and competitiveness of industrial sector, contributing to industrialisation and modernisation of the national economy. 

Over the past years, the government has offered a number of incentives to facilitate support industries in general and those in motorbikes-automobiles in particular. However, the rate of domestically-made products used in automobiles remains limited while Vietnam’s automobile manufacturing cost is higher than regional countries’. 

Anh said there are only about 300 supporting industry firms in automobiles manufacturing nationwide. Moreover, the cost of producing spare parts in Vietnam remains high, making it hard for domestic enterprises to compete with foreign rivals. There remains loose linkage between assembly firms and spare parts providers while domestic technological expertise is weak. 

Almost foreign assembly businesses in Vietnam import spare parts from parent companies or partner with foreign businesses. 

VASI Vice Chairwoman and General Secretary Truong Thi Chi Binh suggested support industry firms devise long-term strategies, enhance connectivity and actively join the global supply chain. At the same time, they should regularly renovate manufacturing up to international standards and cut costs to improve competitiveness. 

Vu Quang Tam, member of the Board of Directors of the Vietnam Engine and Agricultural Machinery Corporation, advised firms to regularly upgrade technology, enhance manufacturing capability, and establish close ties with major manufacturers to join the global value chain for a long term. 

He proposed waiving special consumption taxes on domestically-made spare parts as well as boosting manufacturing of basic materials such as steel, rubber and plastics, in service of automobile sector and other industries.

Nghi Son successfully produces first batch of diesel oil

After successfully producing RON 92 (MOGAS92) and RON95 (MOGAS95) in early May, on May 23, Nghi Son Refinery and Petrochemical LLC in Nghi Son Economic Zone, Thanh Hoa province also successfully produced 5,000 cubic metres of diesel oil (DO) meeting all required specifications and sold it on the domestic market.

Turki Alajmi, chief executive officer of Nghi Son Refinery and Petrochemical LLC (NSRP), said “We were very proud when NSRP successfully produced diesel oil. This achievement is attributable to the tremendous support and hard work of all employees of NSRP.”

This is a remarkable milestone for NSRP, showcasing its capability to operate the refinery and ensure safe operations and stable production.

NSRP is the second refinery in Vietnam with the total investment capital of more than US$9 billion and with a capacity of 200,000 barrels of crude oil per day in phase I, equivalent to 10 million tonnes of crude oil per annum.

This is the largest refinery and petrochemical project in Vietnam, with four investors of Vietnam Oil and Gas Group, Kuwait Petroleum Europe B.V., Idemitsu Kosan Co., Ltd., and Mitsui Chemicals, Inc. from Japan.

The project started in October 2013 and was completed in April 2017, using the world's most modern refinery technologies.

Crude oil will be sourced from Kuwait throughout the life span of the project. When operating at the maximum designed capacity, NSRP will supply approximately 40% of the domestic petrol and oil demand and contribute to ensuring the significant growth of petroleum consumption in Vietnam in the coming years.

HCM City, Chinese province pledge to facilitate bilateral trade

Ho Chi Minh City and China’s Shandong province aim to facilitate bilateral trade by holding more networking events, encouraging investments between both sides, and signing a Memorandum of Understanding (MoU), promising more support in the future.

During a conference held in HCM City on May 23, numerous businesses in different fields from Shandong and Vietnam met to find potential partners.

Vo Tan Thanh, Director of the Vietnam Chamber of Commerce and Industry (VCCI)’s HCM City branch, said that Vietnam and China have had a close business partnership for 68 years.

According to VCCI, in 2017, bilateral trade between the two countries was over 93.6 billion USD (30 percent higher than 2016), accounting for 22 percent of Vietnam’s total bilateral trade.

Vietnam exported over 35.4 billion USD worth of goods to China (61.6 percent higher than 2016), focusing on products such as seafood, rice, rubber, garments and mobile phones.

As of March 2018, China ranked seventh among countries investing in Vietnam, with nearly 1,900 projects valued over 12.4 billion USD.

In addition, according to Wei Xichen, Chinese Consul General in HCM City, many Chinese companies are interested in working with Vietnamese companies in fields such as rubber, fishery processing and tailoring.

Compared to other markets, China is very open to Vietnamese goods without having many requirements, as long as the goods are of high quality, he said.

China is especially fond of Vietnam’s basa fish, cashew, coffee beans, peppers and dragon fruits.

Shandong is one of China’s most populated and economically developed regions, with a 2017 GDP of over 1 trillion USD, ranked third in China, according to Liu Xiaojiang, Vice Chairman of the China Council for the Promotion of International Trade (CCPIT) – Shandong Sub-council.

The province also excels in fields such as agriculture, mechanics, construction and food processing.

“The province considers Vietnam to be one of the most important business partners in ASEAN. In 2017, bilateral trade between Shandong and Vietnam was around 5.5 billion USD,” Liu said.

Vietnamese firms have been encouraged to visit Shandong to find more opportunities to work with local businesses.

The International Imports Exhibition in Shanghai, to be held in November, has invited Vietnam to attend.

The VCCI and CCPIT also signed a MoU to foster trade, promising to increase collaboration efforts and networking opportunities for firms so they can find reliable long-term partners.

According to VCCI, Vietnam and China aim to reach a two-way trade of over 100 billion USD in 2018.

K-Startup Grand Challenge offers opportunities for Vietnamese firms

Vice President of the Vietnam Software and IT Services Association (VINASA) Mai Duy Quang (centre) at the press conference in Hanoi on May 24. 

Vietnamese startups will have opportunities to attend professional training courses, receive consultations from experts and call for investment capital when attending the K-Startup Grand Challenge.

The K-Startup Grand Challenge is a project conducted and financed by the Government of the Republic of Korea (RoK), Vice President of the Vietnam Software and IT Services Association (VINASA) Mai Duy Quang said at a press conference held in Hanoi on May 24 to introduce the programme.

The K-Startup Grand Challenge aims to promote the expansion of an open entrepreneurship ecosystem in Asian region, he said, adding that Vietnamese startups will have chance to receive 100,000 USD as the first prize and assistance from the Korean Government.

Youn Jung Park, director of the Korea IT Cooperation Centre (KICC), said Vietnam has a young and proactive startup community with many innovative ideas.

Some 80 startups worldwide will receive 11,130 USD each to pay living costs during 3.5-month training and connect investment in the RoK, she said.

Meanwhile, top 40 startup will be supported with more than 22,000 USD each in business establishment and operation in the first six months in the East Asian country.

Registration to the programme should be made on http://kstartup.vinasa.org.vn no later than June 14. The qualification round will be organised on July 9-10 in Hanoi and July 11-12 in Ho Chi Minh City. Potential startups will be chosen to compete at the final round in the RoK.

To date, 37 startups have registered their participation, including 16 Vietnamese.

This is the third time that the K-Startup Grand Challenge has been held on the international scale.

In the past two events, 41 startups called 26 million USD from investors. They inked 46 contracts and over 300 cooperative agreements. Particularly, over 80 startups have cooperated with large RoK corporations.

Saigon Autotech & Accessories 2018 kicks off in HCM City

The 14th Saigon Autotech & Accessories 2018 opened on May 24 at the Saigon Exhibition and Convention Centre in Ho Chi Minh City with 300 booths organised by leading domestic and foreign firms in automobile and motorbike, spare part and accessories manufacturing.

Addressing the opening ceremony, Pham Tuan Anh, Vice Director of the Department of Industry under the Ministry of Industry and Trade, said that the event is a good chance to connect manufacturers, suppliers and service providers and customers.

The exhibition is hoped to create an opportunity to introduce latest products, technology and equipment in the field, he said.

Anh held that support industry for Vietnam’s automobile sector has been initiated, but still can supply simple parts with low technology ratio. Meanwhile, there are rooms for the industry to develop, he added.

He stressed that in the future, it is necessary to increase activities to promote investment, experience sharing between domestic and foreign enterprises in the field.

Tao Linh, Chairman of the Board of Directors of the Asia Trade Fair and Business Promotion (ATFA), said that the new feature of this year’s exhibition is the stronger engagement of enterprises in support industry, and more activities to connect enterprises to foster their linkage in developing the automobile and motorbike industry in the coming time. 

First held in 2006, the Saigon Autotech & Accessories has become one of the most awaited events in Vietnam’s automobile, motorbike, electricity bicycle manufacturing and support industry.

Last year, the exhibition was held in an area of 10,000 square metres with 350 booths from domestic and foreign enterprises from Switzerland, the Republic of Korea, Singapore, Malaysia, Thailand, Indonesia and China, drawing about 12,000 visitors.

The Saigon Autotech & Accessories 2018 will last until May 27.

PVCFC’s output hits 5 mln tonnes of urea after 7 years of operation

PetroVietnam Ca Mau Fertiliser Company Limited (PVCFC)’s total output hit 5 million tonnes of urea on May 24, after seven years of operation.

The company, also known as Dam Ca Mau (DCM), has an annual capacity of about 800,000 tonnes of urea, which meets more than 40 percent of the country’s demand and approximately 60 percent of the market share in the Mekong Delta, the country’s largest rice bowl.

Its products have been exported to a number of foreign countries, including Cambodia.

Last year, PVCFC produced about 848,000 tonnes of urea, 13 percent higher than the firm’s yearly target and 5 percent higher than 2016’s figure. It sold more than 864,000 tonnes of urea for nearly 5.89 trillion VND (259.16 million USD), up 6 percent in volume and 13 percent value from a year earlier.

The firm made its debut on the Ho Chi Minh City Stock Exchange (HOSE) on March 31, 2016 with more than 529 million shares offered at a reference price of 14,500 VND.

Party official delivers speech at Russia’s Int’l Economic Forum

Chairman of the Communist Party of Vietnam Central Committee’s Commission for Economic Affairs Nguyen Van Binh delivered a speech at the opening of the 22nd International Economic Forum in St. Petersburg (SPIEF–2018), Russia on May 24.

Binh said he was impressed with the hospitality and beauty of St. Petersburg and highly appreciated the Vietnam–Russia Comprehensive Strategic Partnership.

He moved on to talk about Vietnam’s economic potential, saying following growth in 2018, Vietnam’s economy expanded 7.38 percent in the first quarter of this year and the country has made efforts to improve trade balance with other countries and expand international trade and economic cooperation.

The global economy is facing a number of threats, including the rise of protectionism. In such context, Vietnam is committed to supporting free trade and global economic integration, the Vietnamese official said, adding that this forum is vital for Vietnam and other countries to step up international cooperation and sustainably develop the world economy.

On the first day of the forum, the Vietnamese delegation, led by Binh, had a meeting with leaders of the Asian Infrastructure Investment Bank (AIIB) and Gazprom, a large Russian producer of natural gas to review results of their cooperation and discuss the future of their partnership.

The second day of the event on May 25 is set to attract great attention as Russian President Vladimir Putin will deliver a keynote address at the plenary session. The Vietnamese delegation will also be busy with meetings with many partners today.

The SPIEF–2018 takes place from May 24-26. The forum drew an estimated of nearly 10,000 participants from Russia and other countries, including heads of state and government, politicians and corporate leaders. It aims to promote a constructive dialogue for policymakers, corporations and experts. 

Events of the SPIEF-2018 focus on four key categories – “The Global Economy in an Era of Change,” “Harnessing Russia’s Growth Potential,” “Human Capital in the Digital Economy” and “Technology for Leadership.”

In 2017, the SPIEF drew more than 14,000 participants from 143 countries and saw some 400 investment agreements worth about 32.5 billion USD signed.

VN’s first ever resort managed by Dusit International opens in Phú Quốc

The Thailand-based global hospitality company Dusit International has made its entry into Việt Nam with the opening of the four-star Dusit Princess Moonrise Beach Resort on  the resort island of Phú Quốc.   

Centrally located on the island’s stunning west coast and only a short drive from Phú Quốc International Airport and Dương Tơ town centre, the resort bears a modern twist of a contemporary resort, reflecting both Vietnamese culture and the rich heritage of Thai hospitality. The resort features 108 elegantly designed rooms, most of them with ocean views overlooking Long Beach.

At Soi14, the resort’s beach front Thai bar and lounge, where Thai chef Somnuck has transferred the Bangkok street food concept into a resort environment, guests can enjoy contemporary Thai food creations or a classic cocktail whilst contemplating gorgeous sunsets. Other outlets, including an all-day-dining restaurant, a lobby lounge and a swim-up pool bar, embrace the modern fusion of Vietnamese, Thai and Western cuisines.

Stepping into Luna Thai Spa, guests will enjoy a Thai inspired world of tranquility and rejuvenation. With a diversified spa menu, experienced therapists will awake your inner strength and harmonise the senses.

“Phú Quốc’s growing reputation as a major tourist destination is only set to flourish over the next ten years, as many high-end developments are slated to open on the island,” said Group Chief Executive Officer of Dusit International, Suphajee Suthumpun.

“Following our strategy for sustainable and profitable growth, which includes building our portfolio of international properties, the new hotel has opened under our newly developed franchise model, which helps property owners gain maximum returns whilst providing them with all the benefits they expect from a global brand,” she added.

Programme to support local firms
     
The Viet Nam Industry Agency under the Ministry of Industry and Trade (MoIT), in partnership with the International Finance Corporation (IFC), a member of the World Bank Group, officially launched the Viet Nam Supplier Development Programme (SDP) in Ha Noi on Thursday.

This programme is aimed at helping Vietnamese companies become suppliers for multinational enterprises, while enabling existing suppliers to expand their business and share of added value.

Recently, multinational enterprises (MNEs) have implemented a number of large investment projects in Viet Nam, providing opportunities to expand domestic supply to these companies. One of the obstacles, however, is the lack of suppliers in the country meeting global standard requirements.

Given the scenario, the two-year SDP aims to help domestic suppliers meet the requirements of MNEs including quality, price and delivery throughout the value chain in targeted sectors. Subsequently, these firms can be linked to MNEs to seek supply opportunities in the future.

MoIT’s deputy minister Do Thang Hai, said capacity building to establish new business links with MNEs is the first step to enhance the competitiveness of participating local firms. “The purpose of this programme is to move the local firms to the process of creating higher added value in the value chain so that they can produce more sophisticated products and become globally competitive,” he added.

Over the next two years, the programme will work with eight leading MNEs in the automotive, electronics, energy and household appliance sectors, such as Bosch, Canon, Datalogic, Denso, Ford, General Electric, Panasonic and Toyota.

The enterprises were chosen based on their interest in sourcing locally and assisting local companies in finding business opportunities. Some 45 local companies, who are wholly or largely Vietnamese-owned, have been selected to join the programme based on recommendations by participating multinationals and various business organisations.

“Large foreign direct investments into Viet Nam with operations of leading global firms have brought up opportunities to promote Viet Nam’s supporting industry and facilitate local producers’ increased participation in the global value chain,” said Kyle Kelhofer, IFC country manager for Viet Nam, Cambodia and Lao PDR.

Developed in close consultation with MNEs, the programme will assess the business performance and competitiveness of participating suppliers, identify areas for improvement and specific actions to build supply capabilities, and improve long-term competitiveness. In addition, the programme will strive to connect potential businesses with potential buyers effectively.

“We are happy to work with local companies which could compete with suppliers from other countries,” said Yamamoto, corporate planning director, Panasonic Viet Nam. “We expect this programme can help us get business with some potentially long-term partners and promote our local sourcing,” Yamamoto added.

Seminar discusses fire safety in buildings     

Major cities around the world have seen a movement towards vertical living instead of horizontal, and Viet Nam is seeing a similar trend, a seminar heard in HCM City on Tuesday.

Mary Tarnowka, US consul general in the city, said she had seen tremendous growth in HCM City’s residential and commercial infrastructure in the last two years.

The urbanisation trend is not unique to HCM City as other cities around the country and in other ASEAN member countries are seeing an influx of people to urban centres.

“Ensuring the safety of our homes, offices, and public spaces is an integral part of building trust and confidence among the residents of HCM City. This includes having frequent and reliable safety inspections that enforce the city’s building regulations as well as deploying the latest products and services.”

She said she was saddened by the tragic loss of life at the Carina Plaza apartment complex in District 8 in March.

“Incidents like this one are garnering more attention globally. Many can be prevented with a greater investment in building safety training, prevention through inspection services, and enforcement of rules and regulations.

“Achieving safer buildings not only comes from more robust and rigorous safety inspection practices, but having the appropriate internationally recognised standards in place.”

Pham Minh Ha, general director of the Ministry of Construction’s State Authority for Construction Quality Inspection Department, said ensuring the safety of people and assets in buildings had always been a top priority.

“The legal framework related to fire safety, construction inspection and other safety aspects of buildings has been strengthened. Relevant ministries and agencies have enhanced co-operation to improve fire safety inspections of buildings.”

The number of buildings built before 1990 remains high, with many degraded and threatening the safety of occupants, he told the seminar on “Working for safer buildings in smart cities” held by the consulate and UL, a US-based safety consulting and certification company.

Besides, many buildings have been built subsequently in violation of licence conditions and without their designs strictly complying with fire safety provisions, he said.

His ministry would continue to check compliance with construction norms, fire safety equipment and their maintenance, and severely penalise violations, he said.

Major General Doan Viet Manh, director of the Viet Nam Fire and Rescue Police Department, said building owners should choose modern fire safety technologies and qualified consulting, design and construction supervision units, and use fireproof materials, intelligent fire alarm systems that are linked to the fire service and can alert people to ensure evacuation before emergency forces arrive.

Many US companies also shared information and best practices to help Government leaders, developers, construction firms and other stakeholders explore ways to mitigate building safety and security risks.

Corporate governance to be regulated
     
The State Securities Commission (SSC) will promote the standardisation of corporate governance for public companies this year.

There are also plans to issue the Code of Corporate Governance to improve the framework for the Vietnamese securities market in line with international practice.

Le Cong Dien, director of SSC’s Public Enterprises Supervisory Department, delivered the statement at the workshop on investor relations held in Ha Noi on Wednesday.

In 2018, the SSC is tasked with building the revised Securities Law, which should be submitted for the National Assembly’s review in the sixth meeting in October.

Dien said the institution and maintenance of good corporate governance practice is an important issue in the revised law. This is also a critical topic in economic action programmes, business communities in most countries in the world.

“Good corporate governance helps improve business performance and contributes to the prosperity of the economy in general,” Dien said.

According to Phan Duc Hieu, deputy director of Central Institute for Economic Management under the Ministry of Planning and Investment, the average corporate governance quality of Vietnamese companies is much lower than the common ground in the region.

Viet Nam’s corporate governance scorecard of the six ASEAN countries was the lowest and lagged far behind the surrounding countries like Indonesia, Malaysia, the Philippines, Singapore and Thailand, Hieu said investor relation is also a very new issue for listed companies here.

“There are very few companies aware of this problem, let a lone take actual action to implement this programme,” Hieu said.

He said in the countries with high corporate governance quality, managers will apply the practice for the benefit of the company, even if the law does not require it.

According to Hieu, as the corporate governance in Viet Nam is at a very early stage, the State invention is necessary to make sure companies comply with good practice.

In 2017, the Government issued Decree No 71/2017/ND-CP and the Ministry of Finance issued Circular No 95/2017 on corporate governance applicable to public companies. The law introduction has demonstrated the Government and market regulators’ willpower to develop good corporate governance practice, at the same time creating legal framework for improving the quality of goods on the stock market.

SSC and two stock exchanges have also made efforts to popularise and raise corporate awareness of enterprises, as well as encourage businesses to adopt good practice through training programmes and annual assessment on corporate governance of listed companies.

Hieu also suggested the Government create the right environment and mechanism to develop the intermediaries or organisations that observe and evaluate companies, or carry out activities to protect the interests of shareholders. For example, in Malaysia, there are associations or companies established to protect shareholders.

Such organisations would put pressure on companies to adopt better practice and mechanism to protect shareholders’ interests, Hieu said.

Nguyen Anh Phong, deputy general director of the Ha Noi Stock Exchange, said good investor relations would bridge the gap between companies and their shareholders, at the same time supporting companies to raise capital from the securities market.