Emirates seeking pilots in Vietnam

Emirates, recognized as the Best Airline in the World at the inaugural TripAdvisor Travelers’ Choice® Awards, will hold pilot recruitment roadshows to recruit experienced and technically-proficient commercial pilots to fly on its growing network of international routes.

Roadshows will be held in Ho Chi Minh City at the Eastin Grand Hotel Saigon, 253 Nguyen Van Troi Street, Phu Nhuan district on July 6 at 10 am and 2 pm and on July 7 at 10am.

The roadshows offer interested pilots a great opportunity to learn more about the recruitment process and talk to Emirates’ staff about the extensive training, career development pathways, and progression plans Emirates’ pilots are entitled to. Pilots can also obtain more information on the opportunities to join Emirates’ passenger and freighter fleets.

Emirates pilots enjoy the opportunity to fly with one of the fastest growing airlines in the world, which operates a modern fleet of over 250 wide-bodied aircraft. With over 200 aircraft on order from Airbus and Boeing, Emirates will continue to increase its fleet size and extend its network, which already stands at over 150 destinations in 83 countries and services 23 destinations in 13 countries within the Asia-Pacific region.

Pilots also enjoy a competitive tax-free salary, medical and dental insurance, annual leave, and company accommodation, while living in one of the world’s leading cultural and business hubs - Dubai.

Emirates operates daily passenger services from both Hanoi and Ho Chi Minh City. From Ho Chi Minh City, the airline has flown daily direct flights to Dubai since 2012, while the Hanoi-Dubai route will be non-stop from July 2. Both services are operated with Boeing 777-300ER aircraft. In terms of freighter services, Emirates provides a weekly capacity of over 580 tonnes through 18 flights, including four weekly freighter services from both Hanoi and Ho Chi Minh City.

Kinh Bac passes on $250-million Diamond Rice Flower complex

Kinh Bac Corporation yesterday announced that it had decided to transfer 100 per cent of its stakes in Lotus Hotel Development Company, the developer of the Diamond Rice Flower hotel complex, to Growing Sun Investment Joint Stock Company.

The announcement took insiders by surprise because in June 2016,  Kinh Bac made the news by setting up a special company named Lotus Hotel Development Company to develop this long-delayed project.

Along with the establishment of Lotus Hotel Development Company, Kinh Bac’s chairman Dang Thanh Tam only a few weeks ago announced that the chartered capital of this company was increased to VND1.5 trillion ($66.6 million) from VND145 billion ($6.4 million).

This increase, according to Tam, is meant to give the project a push after more than eight years of delay.

With the sale of 100 per cent from Lotus Hotel Development Company, Tam has officially given up on his dream to build a landmark building with sophisticated design in My Dinh area in the west of Hanoi.

Delayed since 2009, Kinh Bac has so far paid more than VND26 billion ($1.15 million) to Foster & Partner for its design and the zoning expenditures for the project.

Before that, the prime location was assigned to a consortium of Japanese Riviera Corporation and CSK Finance in the early 2000s. These investors, however, could not implement their project due to a financial crisis in their home country.

Taking over the project, Kinh Bac paid $5 million to the Hanoi People’s Committee and committed to building a children’s home in a remote area of Hanoi, with the cost of $1.5 million.

Considering the situation of the real estate market in Hanoi, Kinh Bac has decided to reduce the scale of the project from the original 100 to 50 floors.

Growing Sun Investment Joint Stock Company, the buyer of the project, was established in 2006. With this new investor, insiders expect that the design of the Diamond Rice Flower hotel complex will be revised once more.

Ornamental fish export revenue up

HCM City earned more than US$11.5 million from exporting 9.3 million ornamental fish in the first half of the year, a rise of 25% in output and a surge of 52% in revenue over the same period, according to the municipal Department of Agriculture and Rural Development.

The key markets include Europe (55% of output) and Asia (31%), followed by the US, Africa and the Middle East.

The surge in revenue was largely due to higher prices for pet fish exported to Europe and Asia, according to the department.

Dĩa fish (red discus fish) had one of the highest export values (US$4.7 million, with more than 135,000 fish). Other popular exported ornamental fish include neon fish, molly fish, sailfin molly, and seven-coloured fish, Siamese fighting fish.

In 2015, the city exported 13 million ornamental fish and gained revenue of US$12 million, doubling the 2010 figures, according to the department.

Under a programme to boost ornamental fish breeding development by 2020, the city will focus on increasing quantity and product value, upgrading the breeding infrastructure to prevent disease and protect the environment.

The city has set a target by 2020 to produce 150-180 million ornamental fish and export 40-50 million ornamental fish with export value of US$40 million to US$50 million.

To reach the target, the department needs to expand pet fish production area in districts 8, 9, 12, Go Vap, Thu Duc, Cu Chi, Binh Chanh and Hoc Mon.

The city has also mapped out breeding and technical programmes and outlined a roadmap to enhance ornamental fish development.

Along with setting up linkages between production and consumption, the city will also build a website that will introduce ornamental fish breeding farms and enterprises to customers.

The industry will also create efficient production models that provide disease-free fish for export and offer consultations about pet fish.

Vietnamese pet fish are shipped to 47 countries, with Europe accounting for 60-70% of the market share. The major buyers are Germany, the UK, Sweden, Denmark, France, Italy, Switzerland and the Czech Republic.

Reference exchange rate goes down at week’s beginning

The daily reference exchange rate on June 26 was set at 22,431 VND per USD, down 1 VND compared to the rate on the last working day of last week (June 23). 

With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is 23,103 VND and the floor rate 21,759 VND per USD. 

The rates listed at commercial banks on June 26 morning saw almost no change. 

BIDV listed it buying rate at 22,690 VND and selling rate at 22,760 VND per USD, the same as on June 23. 

Techcombank also maintained the same rates as on June 23, at 22,680 VND (buying) and 22,770 VND (selling). 

Meanwhile, Vietcombank raised both rates by 5 VND, to 22,695 VND (buying) and 22,765 VND (selling).

Russian firms interested in Vietnamese market

Russian firms are intrigued by the Vietnamese market, given that the ruble is falling and Russian manufacturers are eyeing international markets, said Olga Koshev, President of the Inter-Regional Organisation for Support and Protection of Small and Medium-sized Enterprises. 

In a recent interview with Vietnam News Agency, Koshev said Vietnam plays an important role in Russia’s policy of a “pivot” to Asia-Pacific, adding that successful market penetration in Vietnam - a key member of ASEAN, will help Russia gain a foothold in the 600-million people market. 

According to Koshew, many Vietnamese businesses have succeeded in Russia, mostly in markets and trade centres. Meanwhile, Russia needs products from Vietnam such as fisheries, coffee, vegetables, garment and wooden furniture. 

However, Vietnamese exporters still have difficulties regarding payment, exchange rates, legal matters and geographical distance when exporting to Russia, she said, suggesting that they also need to renovate technology to improve quality and reduce prices and to promote marketing. 

She noted that her organisation is ready to offer free consultancy and support to Vietnamese firms wishing to enter Russia. 

In her opinion, both countries should strengthen ties between small and medium-sized enterprises, aiming to realise the goal of lifting two-way trade to 10 billion USD by 2020.

Commenting on the upcoming visit by President Tran Dai Quang from June 28 – July 2, Koshev said it will deepen the bilateral comprehensive strategic partnership.-

Nam Dinh exports first container of oysters to Europe

Lenger Seafoods Vietnam has shipped its first container of 22 tonnes of oyster grown in Nam Dinh province to Italy, ushering in a new opportunity for local breeders.

At the factory of the Lenger Seafoods Vietnam, a member of Lenger Seafoods from the Netherlands, oysters are processed in a complete hi-tech production line to ensure they stay fresh when they reach consumers in the European market.

With a capacity of up to 300 tonnes of oyster per day, the company is expected to export 10 containers of frozen oyster to Europe in June.

For years, oysters grown in Nam Dinh province have mainly served the domestic market and have been export to China via border gates. To expand the export to choosy European market, materials input is one of the key factors apart from production chain.

Nam Dinh province is building and completing a chain of production, processing and consumption of bivalve mollusk and providing farmers with guidance on how to ensure sustainable aquaculture and hygienic safety.

Since 2004, Nam Dinh has set up areas to control and supervise food hygiene and safety in accordance with European standards.

Nam Dinh is one of the three localities in the north to meet biological standards to grow and produce oysters in line with European standards. The export of the first container of oysters to Europe is paving the way for the sustainable development of aquaculture products.

IP land occupancy rate reaches 73 percent

The occupancy rate in operational industrial parks (IPs) across the country has reached 73 percent, according to the Economic Zone Management Department under the Ministry of Planning and Investment.

As of early June, there were 325 IPs, including 44 foreign-invested ones, nationwide with combined area of 94,400 hectares, with 64,000 hectares for lease.

Of which, 200 IPs on 60,900 hectares have been put into operation. The rest of the area is under construction.

The coastal area is home to 36 IPs and non-tariff areas in 16 economic zones (EZs), covering 815,000 hectares on land and water. They span over a combined area of 16,100 hectares, with 7,800 hectares were for lease.

Two more coastal EZs are to be established in the northern province of Nam Dinh and Thai Binh.

Total registered and adjusted capital of 375 foreign investment projects in the IPs was reported at 6.2 billion USD, while the domestic figure was 108 trillion VND (4.75 billion USD) in 318 projects and 115 adjusted ones.

Big projects registered in May include the expansion of a 2.5 billion-USD factory of Samsung Display Vietnam in Yen Phong IP, the northern province of Bac Ninh; a 220 million-USD tire cord project of the Republic of Korea’s Kolon Industries Inc. in the southern province of Binh Duong; and a steel production factory worth 60 trillion VND (2.64 billion USD) of Hoa Phat Group in Dung Quat EZ in the central province of Quang Ngai.-

Vietnam attends international trade fair in South Africa

Vietnamese firms are displaying products at the 24th South African International Trade Exhibition (SAITEX) opened on June 25 in Johannesburg city, South Africa.

The businesses promoted their strengths in agriculture, household appliances and wooden furniture, among others, enticing local importers and visitors who were interested in the prices, quality, producing process and export possibility of Vietnamese goods.   

The fair offers an opportunity for Vietnamese enterprises to introduce Vietnamese export staples in South Africa and Africa in general, said Vu Van Dung, Vietnamese Ambassador to South Africa.

He hailed bilateral trade turnover of more than 1 billion USD as a highlight of Vietnam’s economic activities in Africa.

However, he noted that there is huge potential for Vietnam to enhance trade cooperation with the region, especially the host country, expressing his hope for better access of Vietnamese products to the market.

SAITEX is the biggest annual international trade fair in Africa, aiming to boost trade exchange between South Africa and other countries while creating better links between producers, exporters, importers and distributors.

This year’s exhibition, which runs through June 27, gathers nearly 600 businesses and more than 50,000 people from about 30 countries and territories worldwide.

2,000 City households to register as firms     

The District 5 People’s Committee plans to transform more than 1,200 household businesses into companies every year from now until 2020, a local official said.

This is part of the city’s effort to develop 500,000 enterprises by 2020, Le Thi Loan, head of the committee’s economic office, said.

With its long-standing culture of trading and services, the district is home to 9,018 business households and 7,000 enterprises.

Of them, more than 2,000 have great potential to expand into enterprises, she told a dialogue held on Friday to disseminate the benefits of the transition to enterprises.

More than 140 household businesses participated in the dialogue, which offered them consultancy on establishing companies and tax declaration procedures.

The business households thought to have potential for expansion all have registered capital of more than VND100 million (US$4,420) and pay taxes of more than VND20 million (US$885) a month, she said.

Besides, more than 1,500 household businesses frequently need tax invoices, she said.

The district People’s Committee and various other agencies would facilitate the transition in the first stage, including through policies like free registration of their enterprise and free legal consultancy, she added.

Le Minh Trung, director of the HCM City Centre of Supporting and Enterprise Development, said: “When a household business transforms into an enterprise, it operates more transparently, becoming eligible for incentives from the Government and support from local authorities.”

On June 12 the National Assembly passed the Law on Support for Small-and Medium-sized Enterprises (SMEs).

The law regulates the principles, contents and resources to support SMEs, including support for bank loans, tax breaks, market expansion, land access, and human resource development, Trung said.

SMEs account for 95 per cent of the country’s companies, contributing more than 40 per cent of the gross domestic product (GDP) and employing more than 50 per cent of the workforce. 

HCM City urged to ensure inclusive growth     

The nation’s economic hub, HCM City, should ensure that its development leaves no one behind, Prime Minister Nguyen Xuan Phuc said on Friday.

This is one its key tasks, the others being the generation of jobs with higher incomes and creating sustainable revenue sources for the State Budget by creating a favourable start-up environment, he said.

At a working session with city leaders yesterday, Phuc said it is imperative that the city builds an innovative economy, generates momentum for sustainable development and drive the country’s intensive international integration process.

While the city focuses on smart urban infrastructure, smart management and a competent technocracy, its core values should be inclusive growth and equal development opportunities for all, he said.

Phuc urged the city to review its land use plan and report results to his office by August.

HCM City should take the lead in terms of administrative reform, strive to be part of the top five competitive localities and create new breakthroughs in private investment.

To this end, HCM City and the capital city of Ha Noi should be pioneers in start-ups and innovation and become international centres in education and healthcare, he said.

Phuc asked the municipal Party Organisation and administration to focus efforts on removing bottlenecks hindering the city’s socio-economic development, especially in transport infrastructure. The Government will foster and encourage the city’s innovations, he said.

The PM also praised the city’s contributions to the country’s GDP and State Mudget collection.

In the first half of this year, HCM City’s economy grew 7.76 per cent, compared to 7.47 per cent in the same period last year, with the best performers being services, industry, construction, and agriculture sectors. It will be a touch task for the city to achieve a growth rate of 8.5 per cent in the last six months and the following years, the PM said.

He also pointed out a range of limitations including a relatively low position on the competitiveness index, unequal competition and insufficiently strong legal institutions.

The city also has to tackle the serious problems of flooding, traffic jams and pollution, he said.

On the expansion of Tan Son Nhat International Airport, Phuc urged relevant agencies and units to promptly locate and appoint experts and organisations to make scientific assessments so that the project can be implemented soon. Haste was needed because the Long Thanh International Airport, which aims to reduce the overload of Tan Son Nhat airport, is only scheduled for completion in 2025-27, he noted.

Representatives from ministries and agencies said at the meeting that HCM City has become an attractive destination for investors. However, the city should select suitable projects and prioritise urgent programmes in order to create a momentum for its growth.

They also suggested that the City further decentralises management at different levels.

Secretary of the municipal Party Committee, Nguyen Thien Nhan, said HCM City will spare no effort in trying to meet its socio-economic targets and exceed its State budget collection target. It will also persist with administrative reforms and try to launch the granting of investment licences under the one-stop model in September. 

66,000 email, Facebook accounts in Vietnam stolen in extensive cyberattack: report

Google Chrome extension to steal the sign-in details of about 66,000 Facebook, Gmail and Yahoo Mail accounts together with millions of cookies of popular sites, including Paypal, in Vietnam.

The cyberattack was uncovered just over a month after Vietnamese Internet users were hit by the WannaCry global ransomware program, Thanh Nien (Young People) newspaper reported.

WannaCry is a ransomware computer virus that targets the Microsoft Windows operating system, a global attack which was launched in May, aiming at a huge number of computer systems around the world by encrypting data stored on the computers to demand money.

The cyber-security unit of Hanoi-based Internet company VCCorp announced on June 22 its rocking discovery that the email and Internet accounts of tens of thousands of personal users in Vietnam had been stolen by hackers.

The team had noticed suspicious activities within the company’s internal network carried out from an employee’s account a few days before, according to Le Nguyen Khang, head of VCCorp’s cybersecurity unit.

They later found that the account had been taken over by hackers, suggesting a serious security breach.

An intensive investigation then revealed that a huge amount of account details had been stolen from the employee’s personal computer via a malware program disguised as an Internet Download Manager extension on the Google Chrome browser.

As both the browser and download accelerator are popular with Vietnamese Internet users, the discovery could mean that hundreds of thousands of personal computers in Vietnam were faced with the same risks.

Further investigation by VCCorp experts found that the cyberattack had not been carried out by a lone hacker, but a group of professional ones.

In total, VCCorp estimated that around 55,000 Facebook accounts, 6,000 Gmail accounts, 5,000 Yahoo accounts and over five million cookies of popular sites such as Facebook, Google Mail, Yahoo Mail, Hotmail and even Paypal had been stolen by the hackers.

Email accounts of employees at Vietnam’s major banks such as Vietcombank, VietinBank, BIDV and OCB were also on the list of victims announced by VCCorp.

“Most Vietnamese users save the sign-in details of their email accounts and other important information such as banking and insurance directly on Google Chrome, which could prove disastrous once the browser is compromised,” Khang said. “We have been contacted by local banks and have provided them with the list of stolen emails so that they can alert the whole network to prevent possible risks.”

“This is a wake-up call for everybody, especially personal Internet users without much knowledge about IT or cybersecurity, to stay more alert to these risks,” said Dr. Vo Van Khang, deputy chairman of the southern branch of the Vietnam Information Security Association.

“Users are advised against installing foreign apps and extensions without any certified origin to avoid being infected with malware.”

According to Vu Ngoc Son, deputy head of the anti-malware unit at Vietnamese tech firm Bkav, regular Internet users can take simple steps to minimize the risks of having their accounts stolen by avoid clicking on suspicious-looking email attachments and web links.

Malware programs can also be spread via the piracy of computer software uploaded by hackers, Son warned.

Le Nguyen Khang, the head of VCCorp’s cybersecurity unit, advises Internet users in Vietnam to double-check the extensions installed on their browser, as well as programs and applications currently allowed access to their computer system to remove any suspicious-looking ones.

Further caution can be taken by erasing all saved passwords and forms on the browser, and change all passwords of important online services, Khang advised.

Japan allows chicken import from Vietnam

Japan officially agreed to import processed chicken from Vietnam as of June 22, according to the Animal Health Department under the Ministry of Agriculture and Rural Development.

The first consignment of 300 tons of processed chicken breasts of Koyu & Unitek Ltd Company in Dong Nai province will be shipped to Japan in the coming time.

This is the first time Vietnamese poultry products have been exported to one of the most demanding markets in the world as a result of the Animal Health Department’s efforts to support Koyu & Unitek Company to build a closed production chain to meet food safety requirements set by Japan.

After double-checking the production and processing chain of Koyu & Unitek Company, the Japanese Animal Quarantine Service experts assured that company is qualified to export its poultry products to Japan. 

Earlier in March 2017, the company inaugurated a plant equipped with Japanese technology facilities to facilitate its processed chicken exports to the market.

The Department will continue to support the Company in making procedures for processed chicken exports to the EU and some other markets in the time to come.

Vietnamese agriculture improves quality for exports

As Vietnam integrates extensively into the world economy, major Vietnamese export items including agricultural products have more opportunities to approach large foreign markets.

But to do so, the quality of these products must be improved meeting the quality criteria of export markets.  

Currently, only 4% of Vietnamese small and medium sized enterprises meet the processing regulations of the EU, US, Japan, the Republic of Korea, and Australia. 

Most of the agricultural produce companies are small and medium sized with limited capital and technology, and few of them are proactive in seeking new export markets. 

Ms Vu Kim Hanh, President of the Association of the High Quality Vietnamese Goods Businesses said that international integration requires enterprises to change their business mindset to focus on the entire value chain including chemical use, preservation technology, traces of origin, and labeling. 

Hanh said, “We will have to change our mindset in the production and organization of supply chains. We need equipment and experts to ensure that we meet the requirements of export markets.”

Deputy Minister of Science and Technology Tran Van Tung said enterprises need to apply safe production methods and at the same time follow standards set by relevant Ministries and sectors in order to overcome technical barriers. 

Farmers also require capacity building when participating in the value chain.

Tung said, “Enterprises that export to the US and other foreign markets will be overseen. They need to provide sufficient reports on each and every step of the production process. We will work with relevant ministries to develop criteria on food safety that are in line with international regulations.”

Vietnam earned more than US$15 billion from agricultural exports last year, up 7.7% against the previous year.     

Angel investors shared experiences with Vietnamese startups

The pressing issue of raising capital across the local startup community has just been brought to discussion in a bid to help existing and would-be startups successfully call for investment.

The issue has been discussed and shared between angel investors and Vietnamese startups at the event themed “Angel Investment—Find money or find people?” organised by Topica Founder Institute (TFI).

A number of angel investors talked about their own experiences and challenges when they first launched their startup business. Advice on business plans, seed funding rounds, and project implementation have been given to local startups as tips to carry out at home.

“It is difficult for startups to call for investment capital in Vietnam because it is riskier than investment in other sectors, which means investors need to have large capital and startups need to be able to prove that they have potential to develop in the future. Therefore, Vietnamese startups should choose less capital intensive business models,” noted Nguyen Thanh Nhan, ex-employee of Google.

Nhan, who recently launched his own investment fund for startups, told VIR that the local economy has been experiencing a fast-growth cycle in recent years and, as a result, more local enterpreneurs want to start their business to take advantage of potential opportunities arriving from this growth.

Angel investors shared experience and real knowledge to help local startups in calling for investment capital

The meeting, held on June 21 at BKUP Co-working space in Hanoi, attracted local startup founders and investors with the appearance of three successful angel investors Nguyen Thanh Nhan, Dang Cong Nguyen, chairman at EWAY Group, and Trinh Anh Duc, managing director of VIC Partners.

TFI is a startup accelerator programme owned by Topica Edtech Group, the leading e-learning group in Southeast Asia with more than 1,000 employees and 1,800 lecturers in Bangkok, Danang, Ho Chi Minh City, Hanoi, Jakarta, Manila, and Singapore.     

Organisation and operation of National Traffic Safety Committee

The Prime Minister has issued Decision No. 22/2017/QD-TTg on the organisation and operation of the National Traffic Safety Committee (NTSC) as well as traffic safety committees at provincial and municipal levels.

The NTSC is an inter-agency coordinator, which is responsible for assisting the Prime Minister in directing ministries, sectors and localities to implement national strategies and projects on ensuring traffic safety and order as well as deploy interdisciplinary solutions in this field on a national scale.

At the same time, the committee is also tasked with instructing and inspecting the implementation of plans and solutions to ensure traffic safety and order by the traffic safety committees of the provinces and centrally-run cities.

The committees shall also propose or directly resolve local petitions to deal with situations or incidents to ensure traffic safety and prevent traffic congestion. 

HCMC kicks off Farm Produce Fair 2017 

The 2017 Farm Produce Fair is scheduled to open at Go Vap Flower Village Park in Ho Chi Minh City from June 29 to July 3.

The fair will be held by the Ho Chi Minh City Farmers Association and departments of Agriculture and Rural Development and Department of Industry and Trade.

The organizational board  expects to set up around 160 pavilions of 100 firms and individuals from 17 provinces and cities across the country.

Of these, Ho Chi Minh City’s enterprises are predicted to conquer 95 booths.

The event aims to create chance for farmers, small- medium firms to showcase and advertise their best products, to promote their business. 

Real estate market to see big changes after mid August

Trading, merging and transfer activities of property projects will develop more strongly than before after August 15 when the National Assembly’s resolution on tackling bad debts becomes effective, reported HCMC Real Estate Association.

According to the association, that will be a positive signal to solve deep debts, a congestion of the economy.

There will be big adjustments to solve supply and demand imbalance and help the market develop healthily and sustainably. The market will develop towards the affordable segment to meet the real demand of middle and low income people.

In the first half this year, the commercial housing market in HCMC had 32 future projects affirmed by the Department of Construction to be eligible for capital mobilization.

These projects will supply 16,506 products comprising 14,754 apartments and 1,752 houses, needing to raise a total funds of up to VND30,599 billion (US$1.35 billion).

Ministry okays four lanes for Trung Luong-My Thuan expressway

The Ministry of Transport has approved the adjustment of Trung Luong-My Thuan expressway project in which phase one of the road will have four lanes rather than two.

Director of BOT Trung Luong - My Thuan JS Company Phan Anh Dung said on June 21 that in the original plan, phase one of the expressway would have a width of 13.75 meters with two lanes and without a road divider.

“However, some components in the first stage of the project have just been revised, including the width of the expressway to be expanded to 17 meters with four lanes and a divider. In phase

two, the expressway will be expanded to 32 meters with six lanes,” Dung told the Daily on the sidelines of a meeting on June 21 between the ministry and Tien Giang Province.

The total investment cost of the project has not been decided but it will not be higher than the previous estimate of VND14,678 billion (around US$646 million).

The cost of the first phase is unchanged or even lower but the scale is larger. Dung explained that the estimated site clearance cost has decreased by about VND1.3 trillion (US$57 million) compared to the original plan. Some other adjustments also help reduce the cost.

Nguyen Ngoc Son, director of the Management Board of Transport Projects Investment and Construction under Tien Giang Province’s government, said

the site clearance cost was approved at VND1,170 billion. The investor has transferred VND703.55 billion of site clearance cost to the province and the provincial government has paid a total of VND653.71 billion in compensation for affected people.

Speaking at the meeting, Tien Giang Province vice chairman Pham Anh Tuan requested the investor to timely transfer the remaining VND463 billion to the province to finish site clearance compensation.

The Trung Luong-My Thuan expressway project is expected to get off the ground in the second quarter of 2017.

Samsung supports domestic suppliers to enhance capacity

Samsung Vietnam has plans to provide technical support this year for 12 domestic producers of sophisticated components, taking the number of domestic suppliers of the South Korean firm to 26.

Samsung Vietnam on June 20 took an inspection trip to three enterprises participating in the innovation consulting program, including Thanh Long Electronic Production JSC, Hanel Plastics JSC and Vietnam HTMP Mechanical Co Ltd. Samsung has sent specialists to directly support domestic suppliers since 2015.

Technicians of Samsung will work at these enterprises in three months to help them improve productivity and join the electronics parts supply chain for Samsung.

Thanh Long Electronic Production JSC is the tier-2 supplier of the Samsung Electronics HCMC Complex (SEHC) and the only domestic enterprise to produce printed circuit boards for Samsung which require advanced technology.

Director of Thanh Long Electronic Production JSC Cao Minh said after three months participating in the innovation program, the product defect ratio of the company has dipped by 68.5% and inventory cost has decreased by 28.6% while the product operational rate has improved 23.8%.

Hanel Plastics JSC is the tier-1 supplier of Samsung Display Vietnam and Vietnam HTMP Mechanical Co Ltd is the tier-1 supplier of Samsung Electro-Mechanics Vietnam. By joining the innovation program, they have significantly improved productivity and product quality as well as reduced production costs.

General director of Samsung Vietnam Shim Won Hwan said he appreciates the activeness, determination and innovation of Vietnamese firms and with the support from Samsung, they can definitely join Samsung’s supply chain.

By late 2016, Samsung had provided technical support for 14 Vietnamese enterprises, focusing on enterprises active in the hi-tech industry.

Vietnam’s private sector overburdened with costs

Vietnamese private enterprises are overburdened with formal costs, let alone informal expenses and harassment, so they can hardly develop, experts said at a forum in Hanoi on June 22.

Ho Sy Hung, head of the Enterprise Development Department under the Ministry of Planning and Investment, told the Vietnam Enterprise Development Forum jointly organized by the ministry and Economy and Forecasting magazine that the cost burden imposed by the State is too heavy for private enterprises.

Citing a survey by the Japan External Trade Organization in 2016, Hung said the minimum wage increase in recent years was around 8-12% a year, outpacing annual labor productivity growth of 4-5%. Specially distressful is the high social insurance, at 22% of the total salary fund, far higher than in regional countries, such as 13% in Malaysia and 10% in the Philippines.

The rate of return at private enterprises is worryingly low, at a mere 1.72% compared to the average rate of 6.04% at State-owned enterprises and 6.95% in the foreign investment sector.

Regarding the overall business community, 97.7% of firms are small and medium in terms of labor force, and 94.8% of enterprises are small and medium by capital scale.

For the private sector, such rates are even worse. Up to 98.6% of private enterprises are small- and medium, but the number of medium-sized private enterprises makes up a mere 1.6%. Most private enterprises have fixed assets of VND7-8 billion, and this trivial scale had barely improved throughout the 2011-2015 period.

“Domestic private enterprises are financially incapable of building up fixed assets like machinery and technology to cut costs and improve business efficiency. This is food for thought to policymakers to mull new supportive policies for the sector,” Hung of the ministry said.

Dau Anh Tuan, head of the Legislation Department of the Vietnam Chamber of Commerce and Industry, said bigger enterprises tend to be subject to more inspections by authorities than smaller ones.

“Many small and medium enterprises are satisfied with the business scales since they are fretful over inspections by State administration agencies and the taxman. Some enterprises complained that the day before, they were inspected by the tax agency, and the day after, they were inspected by other State bodies on environment or social insurance,” Tuan told the forum. He added that up to 65% of private enterprises face difficulties in land access.

Vu Dinh Anh, an economic expert, said it is urgent to clarify the role of the private sector in the economy. “When the private sector grows, the economy will also grow. Therefore, it must be clarified that the private sector and the State sector are not mutually exclusive. Rather, they supplement each other in growth,” he said.

Omni-channel emerges as new retail business model

In the context of booming e-commerce, traditional commerce will not become extinct but will serve as a supporting channel for online sales, experts said at a conference on retail development held by Forbes Vietnam in Hanoi on June 22.

Ralf Matthaes, founder and managing director of Infocus Mekong Research, said while businesses have become more optimistic about the retail sector, consumers feel insecure over e-commerce. Therefore, 80% of Vietnam’s retail revenues still come from traditional retail stores despite robust growth of online shopping.

Ngo Quoc Bao, director of e-commerce, business development and technical service at FPT Digital Retail, said interactions with customers are important. With the Internet becoming more popular, customers can now post their complaints on social media, spelling great trouble for businesses.

Businesses cannot rely on a single retail channel, such as online or offline, to survive. Although e-commerce has played a more important role, consumers tend to visit physical stores to examine and experience products before making a purchase decision.

Therefore, omni-channel, or a multi-channel sales approach that provides customers with an integrated shopping experience, has become more pervasive. Take Amazon for example. The e-commerce giant has acquired the Whole Foods retail chain at US$13.7 billion, showing traditional commerce remains an effective channel for interactions between retailers and customers, he said.

According to Bao, 44% of Vietnamese consumers search for products on retailers’ websites and place orders online, while 51% of them come to physical stores to buy after doing some research online. However, only 17% of customers purchase online after experiencing them at physical stores.

In addition, the popularity of smartphones has ushered in drastic changes in people’s spending and shopping behaviors. “About 67% of consumers start or finish their purchases by an electronic device,” Bao said.

To be successful in omni-channel retail, businesses will face plenty of challenges. They will have to ensure a uniform operation for the whole retail chain and train staff to adapt to new technologies and sales methods.

Trinh Lan Phuong, founder and CEO of Bibo Mart, said the company was established with initial capital of VND130 million (over US$5,700). But after ten years, it now has annual revenue of over US$100 million with 150 outlets nationwide.

Phuong said retail businesses need to improve their finances, human resources, technology application and governance skills to prepare for the rise of e-commerce. Bibo Mart has spent millions of dollars adopting new technologies and recruiting retail experts to catch up with new trends.

According to Phuong, traditional retailers should build an omni-channel platform to adapt to new shopping habits and expand their retail chain.

Dinh Thi My Loan, chairwoman of the Vietnam Retailers Association, said many domestic enterprises such as Tiki, Bibo Mart, Tran Anh, Pico and Nguyen Kim have always been eager to learn new things and ready for changes in the business environment and gained great success. However, whether focusing on online, offline or omni-channel retail, enterprises need to put customers at the center of their business operations.

DOC initiates anti-dumping investigations into Vietnam fibre

The US Department of Commerce (DOC) has initiated anti-dumping investigations into polyester staple fibre imported from China, India, the Republic of Korea, Taiwan and Vietnam, according to the Vietnam Competition Agency under the Ministry of Industry and Trade.

The inquiry is predicated upon a complaint filed by DAK Americas, Nan Ya Plastics and Augira Polymers. They accused that polyester staple fibre products have been shipped to the US at prices less than their normal value and dumping has caused significant damage to the domestic industry due to price depression and reduced profits and market shares and jobs.

The alleged anti-dumping duty margin for Vietnamese product is 64.73%.

Last year, Vietnam shipped around 12.4 million of polyester staple fibre to the US, ranking third behind China (US$79.4 million) and India (US$14.7 million).

DOC is to give a preliminary conclusion on the investigation in late November and anti-dumping duties will be imposed as from mid-March 2018 if any of damage is found.

KIDO acquires 50% of Dabaco Food

Northern livestock giant the Dabaco Group JSC has decided to sell 50 per cent of its subsidiary Dabaco Food to the KIDO Corporation Group for VND100 billion ($4.4 million).

Dabaco also transferred 5 per cent of Dabaco Food to Mr. Nguyen Nhu So, Dabaco’s Chairman.  

After completing the sale, Dabaco will hold 45 per cent of its subsidiary’s capital, equal to VND90 billion ($3.96 million).

Dabaco Food, which has charter capital of VND200 billion ($8.8 million), owns three plants slaughtering, processing, and preserving cattle and poultry, with a capacity of 25,000 chickens a day, packaging canned meat and sausages, and producing and preparing frozen meat and fresh meat.

Under the sale, Dabaco Food will be an outsourcing company while KIDO will fully control products and brands.

KIDO’s CEO Tran Le Nguyen said the acquisition of Dabaco Food and several other companies is aimed at expanding product lines to take advantage of its distribution network. Dabaco’s products are currently only distributed from Hanoi to north-central Ha Tinh province and will now be distributed nationwide. 

By investing in Dabaco Food, KIDO now has a presence in three key segments in the food industry: fresh food (meat and sausages), frozen food, and canned food.

In 2016, the Dabaco Group recorded revenue of VND8.9 trillion ($391.6 million), 5 per cent higher than planned. After-tax profit stood at VND451 billion ($19.8 million).

The company this year targets total revenue of VND9.3 trillion ($409.2 million) and VN320 billion ($14.08 million) in after tax profit.

Dabaco has also expanded its business into retail and entertainment. Dabaco Mart was recently launched in Tu Son Town, northern Bac Ninh province, with investment  of over $10 million. 

KIDO’s consolidated results for the first quarter of this year included net sales of VND1.25 trillion ($55 million), driven by growth in its frozen food business and the inclusion of the Tuong An Vegetable Oil JSC.

Growth in net sales was 217.4 per cent year-on-year. Its frozen food business grew 10 per cent and recorded net sales of VND260 billion ($11.4 million) thanks to solid contributions from its new Bac Ninh factory.

Pre-tax profit stood at VND41.7 billion ($1.8 million) in the first quarter and after-tax profit VND30.4 billion ($1.3 million), increases of 34.5 per cent and 10.4 per cent, respectively, year-on-year.