Electric vehicle production complex to be built in Hanoi

The establishment of an electric vehicle production complex in the Hanoi Southern Supporting Industrial Park (HANSSIP) will give a breath of fresh air to Vietnam’s electric vehicle industry.

The N&G Investment & Development JSC and the MBI JSC from the Republic of Korea inked a Memorandum of Understanding to develop an electric vehicle production factory at HASSIP during a recent investment promotion conference in Hanoi.

Boasting strengths in research, transmission system manufacturing and state-of-the-art technology, the project will create a turning point for the electric vehicle production industry in Vietnam.

Le Hoang Long, CEO of PEGA Electric Vehicle JSC, which is targeting a 70 percent local content in 2018, said battery and transmission engine are the most difficult phases to complete production chain in Vietnam.

A foreign company’s investment in the sector is an upbeat sign, offering a wide range of choices for the company to improve production chain, Long stressed.

Vice Chairman of the European Chamber of Commerce (EuroCham) in Vietnam Tomaso Andreatta said developing electric vehicle production is a judicious move, paving way for Vietnam to become a leading country in terms of green energy. 

The production facility will be built in an area of 33,600 square metres with total investment of 1 billion USD, MBI Chairman Moon Soon Yoo said, adding that 100,000 USD of the sum will be disbursed at the first phase of the project.

He stated that as electric vehicle production is rather new in Vietnam, the Government and Hanoi authorities should map out policies to encourage people use electric bikes and cars to reduce alarming air pollution in the city besides simplifying administrative procedures.

Vietnam is a fertile land for two-wheel vehicle production with hundreds of spare part manufacturing plants meeting international standards. According to the Vietnam Association of Motorcycle Manufacturers, the country produces 2.8-3.3 million motorbikes every year.

HCM City’s retail sales jump 10.3% in H1

HCM City’s total revenue from retail trade and services saw a year-on-year increase of 10.3 per cent to US$20.1 billion in the first half of this year, according to the municipal Department of Industry and Trade.

Of the total, the retail sales of goods contributed $13 billion, up 12 per cent year-on-year. Several goods recording significant sale increases, included wood and construction materials, up 21 per cent; home appliances up 19 per cent; and textile and garment, 12 per cent.

The positive retail sales growth in the period was attributed to strong development of the city’s distribution system, meeting the needs of local consumers, experts said.

As of June 2017, the city was home to 240 traditional markets, 201 supermarkets, 42 trade centres and over 900 convenience stores, the department’s statistics revealed.

The city has set a target of achieving a 9.5 per cent rise in its total retail sales and service revenues in the whole year, department director Phạm Thành Kiên said.

To reach the goal, the city’s trade and industry sector would encourage all economic sectors to participate and invest in developing the distribution system, Kiên said.

It would also focus on tracing origins of pork, eggs, poultry and agricultural products, as well as food and food products at wholesale markets in a bid to ensure stable growth of its retail sector.

From now till the year-end, the department would continue to cooperate with producers in the city and other localities in distributing goods directly to customers.

Developing promotion campaigns for local consumers and tourists would be also included, Kiên said.

Credit grows 8.15% in first half in Hà Nội

The total outstanding loans in Hà Nội was estimated at VNĐ1.6 quadrillion (US$70 billion) in the first half of this year, according to the State Bank of Việt Nam’s Hà Nội branch.

It represented a rise of 8.15 per cent over December 31, 2016 and 16 per cent over the same period last year.

The credit mainly went into business and production, with 41.9 per cent of the outstanding loans pouring into small- and medium-sized enterprises, 7 per cent for agriculture and rural sector, and 9.8 per cent for export.

Deposits in credit institutions in the capital city rose 5.39 per cent in the first six months of this year over the end of last year to touch VNĐ1.7 quadrillion.

The central bank’s Hà Nội branch said that the deposits met the capital demand of businesses and other investments, as well as ensured liquidity.

Overdue debts accounted for 2.82 per cent of the total outstanding loans.

Deposit rates for Vietnamese đồng were around 4.5 per cent to 5.5 per cent per year for a term of six to 12 months and 6.5 per cent to 7.8 per cent for more than 12-month term.

Lending rates were at 6 per cent to 7 per cent for short-term loans and 9 per cent to 10 per cent for medium- and long-term loans.

The foreign exchange rates were also stable in the first half of this year, according to the central bank’s Hà Nội branch.

SHB allowed to open branch in Myanmar

Sài Gòn-Hà Nội Joint Stock Commercial Bank (SHB) has received approval from the State Bank of Việt Nam (SBV) to open its branch in Myanmar.

This would become the third foreign market where it has a presence.

Myanmar has a lot of potential in the finance and banking market although its economy is in the development phase. In addition, Việt Nam and Myanmar signed a joint announcement on comprehensive cooperation in the finance and banking sector in 2010. The signing created a legal framework for the operation of Vietnamese banks in Myanmar.

The establishment of the branch in Myanmar will help SHB expand its brand name in the southeast region while promoting investment cooperation and seeking potential customers.

The SBV also permitted the bank to open five new branches in Hà Tĩnh, Đắk Lắk, Hà Nam, Bình Định and Tây Ninh provinces.

The branches are expected to begin operations in the third quarter of the year providing deposit, lending, payment, guarantee and foreign exchange services.

Nguyễn Văn Lê, SHB’s general director, said the bank’s network expansion has been one of its important targets to improve its service quality, business effectiveness and competitiveness to affirm its brand name value, both inside and outside the country.

“SHB has targeted to expand its network, ensuring safety, effectiveness, international integration and professionalism,” he added.

By the end of March, SHB had charter capital of VNĐ11.2 trillion (US$492.5 million) and total assets of VNĐ247.9 trillion. It has a network of 500 branches in Việt Nam, Laos and Cambodia, with some 7,000 employees serving nearly four million individuals and businesses.

It has targeted to become a strong financial group by 2020.

Him Lam JSC sells entire stake in LienVietPostBank

Liên Việt Post Joint Stock Commercial Bank (LienVietPostBank) has announced that Him Lam JSC is no longer a shareholder of the bank from June 23.

Previously, Him Lam was LienVietPostBank’s largest shareholder, with 96.77 million shares, equal to 14.98 per cent of the charter capital. Dương Công Minh, former chairman of LienVietPostBank, owns 99 per cent stake in the company. At VNĐ12,500 per share, Minh could earn VNĐ1.2 trillion (US$53 million) from the sale of nearly 97 million of the bank’s shares.

Nguyễn Đức Hưởng, chairman of the management board of LienVietPostBank, confirmed on Tuesday that Him Lam’s divestment would not affect to the bank’s business results. In fact, its results this year are expected to be better than the previous years.

After divestment, Việt Nam Post Corporation (VNPOST) has become the largest shareholder of LienVietPostBank, owning around 15 per cent of its charter capital. Recently, many senior officials of the bank registered to buy a large number of its shares, Hưởng said, adding that other members of the management board have continued to buy shares.

Hưởng and several others have increased their ownership to 6 per cent.

In another move, Phạm Doãn Sơn, vice-chairman and general director of LienVietPostBank, registered to directly buy another 6.5 million shares. Sơn had bought 5.1 million shares of the bank on June 7. He would have spent around VNĐ50 billion, at the rate of VNĐ10,000 to VNĐ10,200 per share, at the time.

The bank’s deputy general director Bùi Thái Hà has also registered to directly buy 5.2 million shares.

“The bank wants all its staff to own shares so that LienVietPostBank becomes the first bank in Việt Nam where all staffs are shareholders,” Hưởng told online newspaper Dân Trí, adding that the move is aimed at instilling a sense of ownership and responsibility towards the bank.

The bank is expected to trade on the Unlisted Public Company Market (UPCoM) from next month, thus preparing for its listing in the stock market, Hưởng revealed.

By the end of June, it is estimated that LienVietPostBank’s pre-tax profit will reach VNĐ900 billion ($39.6 million), 60 per cent of its annual target. With these results, the bank plans to pay a dividend of 12 per cent in 2017.

“We will also promote key plans in the future,” the chairman said. Specifically, the bank will continue to expand its network to communes across the country through the postal saving system, as well as make investments in e-banking.

Meanwhile, on June 30, Sacombank will hold its annual general meeting (AGM). In its latest statement, the bank said the current list of candidates for its board of directors (BOD) has not yet been approved and cannot be announced.

Earlier, Minh left the chairmanship of LienVietPostBank, while Hưởng returned to LienVietPostBank after putting his name on the list of candidates for Sacombank’s BOD.

Investors predict that Minh is more likely to be selected as a candidate for Sacombank’s BOD. However, to be able to participate in Sacombank’s restructuring process, Minh has to divest from LienVietPostBank to avoid cross-ownership, in accordance with the State Bank of Việt Nam’s regulations.

Lean peanut crop causes losses for Hà Tĩnh farmers

Farmers in central Hà Tĩnh Province are experiencing a hard time due to the poor harvest of peanuts and the low price of goober peas.

Phan Thị Lan, a farmer in the province’s Thạch Châu Commune, said she was able to harvest very few peanuts when she pulled out the plants. “We harvested 700kg of peanuts on this land plot from the previous year’s crop, but only 200kg from this crop,” she said.

Lan added that she had to sow seeds thrice this time for peanuts to sprout on the entire plot, which meant triple the investment.

Lê Quang Hùng, the commune’s deputy chairman said the commune’s productivity was reduced by almost half on the 240ha used to grow peanuts compared with the 2016 crop.

A lean peanut crop also occurred in other communes and districts around Hà Tĩnh. A report by the local Department of Cultivation and Plant Protection said the yield was 200kg lower per hectare than the previous crop on a total of 14,000ha of land used to grow peanuts in the province.

The report also said some places in the coastal districts of Lộc Hà, Thạch Hà and Kỳ Anh experienced zero harvest as they were low-lying and were flooded due to unexpected heavy rainfall.

Meanwhile, the price of peanuts in the Hà Tĩnh market plunged drastically. One kilogramme of peanuts that cost VNĐ25,000 (some US$1.1) last year dropped to VNĐ15,000 ($0.7) this year.

The price is expected to drop lower as harvested peanuts piled up at farmers’ homes but no traders came to purchase them.

“Despite the low price, my peanuts have been lying for a week but no traders have come yet,” Nguyễn Thị Long, a farmer in Thạch Châu Commune, said.

Other farmers experienced a similar situation. All were concerned about incurring heavy losses as the harvested peanuts seem to be lighter than those harvested from previous crops.

The piles of peanuts lying at homes make the lives of locals during hot summer become harder due to dust and heat. At the same time, the drier the peanuts get, the greater the loss for farmers as the weight is reduced.

HCM City’s retail sales jump 10.3% in H1

HCM City’s total revenue from retail trade and services saw a year-on-year increase of 10.3 per cent to US$20.1 billion in the first half of this year, according to the municipal Department of Industry and Trade.

Of the total, the retail sales of goods contributed $13 billion, up 12 per cent year-on-year. Several goods recording significant sale increases, included wood and construction materials, up 21 per cent; home appliances up 19 per cent; and textile and garment, 12 per cent.

The positive retail sales growth in the period was attributed to strong development of the city’s distribution system, meeting the needs of local consumers, experts said.

As of June 2017, the city was home to 240 traditional markets, 201 supermarkets, 42 trade centres and over 900 convenience stores, the department’s statistics revealed.

The city has set a target of achieving a 9.5 per cent rise in its total retail sales and service revenues in the whole year, department director Pham Thanh Kien said.

To reach the goal, the city’s trade and industry sector would encourage all economic sectors to participate and invest in developing the distribution system, Kien said.

It would also focus on tracing origins of pork, eggs, poultry and agricultural products, as well as food and food products at wholesale markets in a bid to ensure stable growth of its retail sector.

From now till the year-end, the department would continue to cooperate with producers in the city and other localities in distributing goods directly to customers.

Developing promotion campaigns for local consumers and tourists would be also included, Kien said. 

Tracodi adds new line of business, expands board of directors     

The Transport and Industry Development Investment Joint Stock Company (Tracodi) decided at an extraordinary general meeting on June 28 to add advertising services to its scope of business activities.

Vinataxi Company, a joint venture between Tracodi (30 per cent ownership) and Singapore’s ComfortDelgro, plans to offer advertising on its cabs.

Nguyen Ho Nam, deputy chairman and general director of Tracodi, said Vinataxi has over 500 vehicles.

For many auto companies, advertisements on vehicles bring 10-15 per cent of their total revenues, and Tracodi would also like to take advantage of this and expects to earn 5-10 per cent of its revenues from this, he added.

At the extraordinary general meeting, it was also agreed to elect Lin Kuo Wei, a Taiwanese director of DWS Star Bridge Limited Liability Company, as a new member of the board of directors for 2013-18.

Shareholders then approved a plan to issue a maximum of VND1 trillion or US$50 million worth of convertible bonds for a tenor of three to five years with a maximum coupon of 5 per cent if the bonds are designated in dollars and 12 per cent if in dong.

The money will be used to execute projects, as working capital or refinance loans for the company’s projects.

After three years the bonds can be converted at not less than VND15,000 per share.

Replying to a question from shareholders about the company’s ability to achieve its business targets this year, Nam said the targets are likely to be exceeded. 

Bosch to support start-ups in HCM City     

The Saigon Innovation Hub (SIHUB) and Bosch Vietnam on June 27 signed a memorandum of understanding on supporting start-ups in HCM City.

Bosch will send experts to work with SIHUB to assess start-up projects and offer consultancy.

The two sides will organise annual industrial and technical start-up contests.

Besides, Bosch’s two R&D centres in the city will co-operate with SIHUB and start-ups to research and deploy Internet of Things-based intelligent solutions.

SIHUB is run by the HCM City Energy Conservation Centre.

Also on Tuesday Bosch organised a conference on the Internet of Things in the city.

The event included interactive panel discussions and an exhibition of the company’s innovations in the areas of mobility, ports and airports, commercial spaces, residential spaces, and industry 4.0.

They included a range of connected solutions that are of particular interest to Viet Nam in areas like smart city and industry 4.0.

Vo Quang Hue, managing director of Bosch Vietnam, said Viet Nam is in the process of industrialisation and modernisation and international integration, and the Internet of Things and Industry 4.0 provide great opportunities for it to develop its economy as well as industrial sector.

Bosch is a global supplier of technology and services with a presence in the Vietnamese market since 1994. 

Việt Nam’s imports and exports both rise in H1

The total import-export turnover of Việt Nam has reached nearly US$200 billion in the first half of this year, while the country’s trade deficit was $2.7 billion.

Việt Nam’s export turnover increased 18.9 per cent to reach nearly $97.8 billion in the first six months of 2017, the Ministry of Planning and Investment reported.

In particular, exports of foreign-invested enterprises (excluding crude oil) are estimated at $69.26 billion, up 20.6 per cent over last year, accounting for 70.8 per cent of the country’s total export turnover. Including crude oil, this figure is $70.82 billion, up 20 per cent.

Meanwhile, domestic exports are estimated at $26.96 billion, up 13.8 per cent.

It is also worth noting that exports to the Chinese market grew strongly in the period, up 42.5 per cent, much higher than the growth of imports from this market, which is estimated at 16.8 per cent.

Exports from Việt Nam to nine other ASEAN member countries have seen significant improvements with positive export growth as well.

Total Vietnamese import turnover was estimated at $100.47 billion in the six months, rising by 24.1 per cent over the same period last year.

Imports of foreign-invested enterprises reached $60.6 billion, up 28.3 per cent and accounted for 60.3 per cent of the total import turnover of the country.

Domestic imports were estimated at $39.88 billion, up 18.2 per cent.

The trade surplus was $10.22 billion if including crude oil. The FDI sector, if excluding crude oil, had a trade surplus of $8.66 billion.

In contrast, the domestic sector estimates a trade deficit of $12.92 billion.

Linking domestic and FDI enterprises

The Vietnamese government aims to create an open, transparent business environment to enable the national economy to participate in regional and global value chains and ensure even development between economic sectors.

FDI enterprises create jobs and boost Vietnam’s industrial volume and exports. 

They contribute more than 50% of the value of Vietnam’s processing sector and 70% of Vietnam’s total export value. FDI enterprises engage many sectors of the Vietnamese economy.

Linking FDI and domestic enterprises is important

With advantages in capital, technology, government incentives in tax and land, and market connections, and less affected by institutional barriers, FDI enterprises are flourishing in Vietnam. 

While FDI enterprises have grown rapidly, many domestic enterprises have stagnated. Private Vietnamese enterprises are having trouble accessing global value chains and participating in FDI enterprises’ production lines. 

They face obstacles in marketing, accessing market data, and matching the quality of FDI enterprises. 

Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry, said, “The State creates the framework, environment, and conditions. Foreign business associations in Vietnam connect FDI and domestic enterprises. If all the players work harmoniously, the link between domestic and foreign enterprises will be strengthened. This will help assure the interests of foreign enterprises and the growth of domestic enterprises.”

At the Midterm Vietnam Business Forum 2017 in Hanoi last week, representatives of Foreign Business Associations in Vietnam introduced ways to link foreign and Vietnamese enterprises and ensure growth. 

Mr Hiro Sagara, Co-Chair of the Vietnam Business Forum Alliance 2017, said, "Now that they simplify the regulations which will further enhance the foreign direct investment and the linkage of local companies."

At the forum, Deputy Prime Minister Vuong Dinh Hue said the Vietnamese government considers FDI enterprises an important factor in the national economy and intends to seek more FDI. 

Mr Hue said, “The Vietnamese government is creating an open, transparent environment for all businesses, including SOEs, FDI, private, and household enterprises. We intend to be more selective with FDI companies, choosing those whose business plans suit Vietnam’s economic restructuring. Priority will be given to foreign firms with state-of-the-art, environmentally-friendly technology ready to connect with Vietnamese enterprises.”

Amidst the current 4th industrial revolution, the government plays a support role and enterprises play the central role. Stronger links between Vietnamese SMEs and FDI enterprises will assure sustainable economic growth.

FLC Group starts construction of Vietnam’s largest hotel

FLC Group expects its new mega hotel in the central province of Binh Dinh's Quy Nhon town to continue the "no-vacancy" track record of other FLC hotels as the company remains optimistic of the potential for tourism in Vietnam.

On June 15, 2017, FLC Group (FLC) started the construction of The Coastal Hill Hotel with VND2.8 trillion (US$123 million) in total investment. 

A 1,500-room hotel with approximately a kilometre length will help the complex to increase service capacity by 150%.

Talking about the Coastal Hill project, Dang Tat Thang, FLC’s deputy general director in charge of investment, said, “When I discussed the project with foreign consultancy agencies, they asked me whether we made a mistake with the number of rooms. It is too big to even compare with other existing hotels in Vietnam. However, we will implement this project.”

With 1,500 rooms being launched in June 2018, The Coastal Hill Hotel is expected to be the biggest hotel complex in Vietnam.

Being the biggest hotel is an extraordinary point, but the feature that FLC is planning on turning into a special attraction for tourists is the detailed design of the hotel and the whole project.

Thang said, “We named the hotel The Coastal Hill because it is designed like a hill in front of the sea. The project is designed on a high hill, looks straight to the sea. In terms of feng shui, the hotel leans on the mountain, looks straight to the sea, making for a beautiful view.”

One of the first and most highlighted features of The Coastal Hill Hotel is a one-kilometre lagoon stretching in front of four buildings, creating an infinite artificial oceanic space for all 1,500 rooms. Therefore, although the hotel is located on a hill, visitors can still enjoy a beachfront stay.

Construction on powdered chili plant begins in Vietnam

CJ Group, a multi-industry company headquartered in Seoul, the Republic of Korea, broke ground yesterday (June 23) on a new powdered chili plant in the south central coastal province of Ninh Thuan.

Once the new plant becomes operational, it should be able to churn out some 500 metric tons of chili powder annually, said speakers at a ground-breaking ceremony held at the 640-square metre construction site in the Ninh Son District.

They will receive chilis from farmers, said speakers. What they do is process the peppers and they pull the water component out of them. They will dry that and it becomes powdered chili.

The speakers indicated that most of the product will be shipped globally to markets overseas.

With the new plant creating dozens of full time jobs, it is expected to have a positive impact on the local economy in the Ninh Son District, said Pham Van Hau, vice chair of the Ninh Thuan Province People’s Committee.

Anytime one can bring in a new business that brings in jobs and people to the community it's going to boost commerce, said Mr Hau. So, it’s a real bonus for the economy of the entire province.

Construction on the new plant, which is expected to cost US$650,000, should be completed yet this year.

Hanoi at risk of losing Japanese funding if roadworks don't start by end of July: mayor

The mayor of Hanoi has sought to defend a controversial plan to axe 1,300 African mahogany trees along Pham Van Dong Street at a meeting between a parliamentary delegation and constituents in Hoan Kiem District.

“The expansion of the road aims to prevent traffic congestion," Nguyen Duc Chung, the chairman of the Hanoi's People's Commitee, was quoted by Phap Luat (Law) online newspaper as saying at the meeting on Friday. Chung is also a legislator representing residents of Hoan Kiem District.

"The Ministry of Transport needs to start construction of the overpass before July 31, otherwise Japan will withdraw the Official Development Assistance it has pledged for the project,” Chung said. But he stopped short of the specific amount of the Japanese aid.

Most of the trees along Pham Van Dong Street are over 20 years old with diameters of around 3 meters (10 feet) and roots reaching as deep as 1.5 meters, making it difficult to replant them elsewhere, according to Chung.

Hanoi would only be able to replant healthy, straight trees in the city's parks. The remaining trees would be used for timber, he said.

Chung also said the city would calculate the most economically efficient way of moving the trees, and report back to the public.

Residents also raised their concerns at the meeting regarding the city's dwindling green spaces and the filling in of its many lakes and ponds. Some said this had led to the heat wave that hit Hanoi earlier this month.

The city currently has 272 lakes covering 1,631 hectares (4,030 acres), according to Chung.

The city launched a cleanup operation to save its lakes and ponds from pollution in March 2016, and 122 lakes have been cleaned up so far. Hanoi also plans to build 25 new parks and 25 new lakes by 2020, he reported.

Regarding green space, Hanoi had 6.7-6.8 square meters of trees per person at the end of 2015, and is aiming to reach 10 square meters per person by 2020, Chung said. To reach this target, the city has launched a project to plant 1 million trees, with 320,000 new trees planted since 2016.

“For economic and transportation development, sometimes we have to cut down old trees,” Chung said at the meeting.

In early June, Hanoi was hit by a scorching heat wave, with temperatures reaching above 42 degrees Celsius. Many people blamed the record high temperatures on urbanization. Development projects have resulted in thousands of trees being cut down, and many of Hanoi's lakes and ponds being filled in.

Vietnam launches new agency to 'rescue' farm products

Ministry of Agriculture and Rural Development (MARD) launched a new department on June 21 aiming to “rescue” the country's farm products.

Despite its agricultural strengths, Vietnam simply isn't consuming its own agro-products. Weak connections between farmers and traders and an inability to forecast the market have led to overproduction, leaving farmers and producers on the brink of bankruptcy.

Local people have even been asked to step in and buy up excess supplies of bananas, watermelons and pork since the beginning of the year.

The department will offer market forecasts and monitor the consumption of domestic farm products, then coordinate with relevant agencies to balance supply and demand as well as work with the trade ministry to control imports and exports, said MARD on its website.

According to MARD chief Nguyen Xuan Cuong, Vietnam has managed to shift from a hungry country to a major food exporter in the past 30 years.

Last year, Vietnam raked in US$32 billion from agro-forestry-fishery exports. Of that figure, 10 items enjoyed export revenue of over US$1 billion.

However, the Southeast Asian country is facing three main challenges. Firstly, Vietnam has over 10 million farming households whose productivity remains lower than that of the region and the world. 

Secondly, Vietnam is among the world’s top five nations hardest hit by climate change, especially in agriculture. Thirdly, in the age of integration, the country faces fierce competition from overseas.

To address these challenges, Cuong said the sector needs to restructure and focus more on processing and marketing.

“Currently, processing and marketing remain weak in Vietnam as production and marketing are not linked, which results in the overproduction of many agricultural products,” said Cuong.

The new department is expected to work closely with ministries, associations and businesses to connect production and marketing with the aim of tapping the world’s 7 billion population and the 92 million people in the domestic market, Cuong said.     

HCM City based company seeks solar venture capital

A Ho Chi Minh based company that has minimal experience in setting up power projects on any scale let alone a mega scale is seeking investors for a US$1 billion solar power venture.

We are looking for equity capital to fund construction of 10-20 solar parks that we have on the drawing board, said Thai Van Chuyen, CEO of the TTC Group, a company whose experience lies mainly in the sugar and real estate segments.

We believe we’ll be able to raise 30% of the necessary capital internally over coming years but will need stakeholders to provide external equity or other long-term debt financing for the balance.

Mr Chuyen said that TTC Group is currently in the preliminary stages of talks with several financial institutions and exploring a few alternative arrangements to raise the needed venture capital to get the business off the ground.

He noted that green energy technologies such as solar and wind power are receiving a lot of attention because of incentives provided to producers by the government in recent pricing legislation.

Due primarily to companies such as Samsung and LG Electronics relocating their factories from China to Vietnam the economy is expanding and so are the power needs.  The country is facing a power shortage to meet these needs.

Currently, he said, the country relies almost entirely on hydropower and there is much doubt by leading environmentalists, economists and politicians about whether that can or should continue in the future due to the pollution problems it creates.

Some experts predict, that the demand for power could increase twofold by 2025 and—though these predictions are highly speculative by nature—there is little doubt that the demand for energy will continue to rise.

The Vietnam government has laid out a strategy to increase the country’s power capacity by as much as 14% annually through 2030, said Mr Chuyen, noting that TTC Group plans to eventually develop the capacity to provide a good portion of that power.

According to our internal projections TTC Group has the potential to produce 800 megawatts of power per year utilizing principally solar but other green technologies as well.

Mr Chuyen wasn’t clear on many of the specifics but said the TTC Group proposed venture has been receiving a great deal of attention, without elaborating. He also talked about the possibility of a solar project in Singapore.

Korean group Hanwha invests in solar project in Long An

Korean group Hanwha signed a contract with Bang Duong-BCG Joint Venture on June 22 to develop a solar power project in southern Long An province.

The US$100 million plant will be built on an area of 125h in Thanh Hoa District, Long An province with a capacity of 100MW. It is expected to break ground on the first quarter of next year and generate electricity in 2019.

Accordingly, Bang Duong-BCG Joint Venture will call for domestic investment fund, apply for an investment licence, study and implement the project and negotiate with the Electricity of Vietnam (EVN) for electricity supply. Meanwhile, Hanwha group will supply technologies, technical equipment, installation and call for foreign investment in the project.

Representing Bang Duong-BCG Joint Venture, Mr. Nguyen Ho Nam believed that with Hanwha’s experience and state-of-art technologies in renewable energy, the project will be carried out on schedule, contribute to power supply’s output, help mitigate the negative effects of climate change, and accelerate environment protection and sustainable socio-economic development in Vietnam.

Competition heats up as convenience stores race for dominance in Vietnam

The first outlet of 7-Eleven, the largest convenience store chain in Japan, opened in Vietnam last week with a lot of fanfare.

Thousands of people lined up and squeezed into the small shop in downtown Ho Chi Minh City, trying to buy snacks and light meals.

The chain has said it will open around 20 outlets in Vietnam by the end of this year and 100 in the next three years.

The important question here is not about whether similarly big crowds will be coming to its stores in the future. It's where to put these stores.

7-Eleven is entering a market that has become increasingly packed in recent years. Its arrival is intensifying the heated competition for both customers and for retail space.

After all, the choice of location can make or break a convenience store. In big cities, many of the best spots are either too expensive or already taken.

The A.T. Kearney’s Global Retail Development Index this month named Vietnam the sixth most attractive retail market. The country made headlines worldwide when it topped this list in 2008.

The market has drawn a lot of foreign players who are now occupying 70 percent of the convenience store segment.

The American chain Circle K is operating around 250 stores, mostly in the country’s two biggest cities Ho Chi Minh and Hanoi.

FamilyMart, Japan’s second largest convenience store chain, now has 130 stores in Ho Chi Minh City, the nearby resort town of Vung Tau and in Binh Duong Province. It aims to expand the network to 150 locations by the end of this year.

Southeast Asian chains Shop&Go and B’s mart are running another 300 stores.

The dominant local player VinMart+, an offshoot of conglomerate Vingroup, has quickly expanded its network from 500 outlets in 2015 to around 900 last year. The chain plans to round up the number to 1,000 this year or next.

According to industry insiders, setting up a convenience store is much simpler than a supermarket but in order to launch a profitable chain, it takes a lot of money and efforts.

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