1,000 families cook Tet dishes at Co.opmart supermarkets
     
Last weekend the Saigon Union of Trading Co-operatives (Saigon Co.op) organised a programme it called “1,000 Vietnamese Families Together with Saigon Co.op Cook Delicious Dishes for Tet” to honour the Lunar New Year as well as traditional Tet dishes.

At each of more than 50 Co.opmart supermarkets, Co.opXtra hypermarkets and Co.op Food stores, which are part of Saigon Co.op’s retail models, 10-20 families and the supermarket cooked a local Tet dish.

Notably, more than 60 families took part in cooking pork braised in coconut water with boiled eggs at SC VivoCity in HCM City’s District 7, where the programme’s main event took place.

A convivial atmosphere was seen not only at Saigon Co.op’s outlets in HCM City but also at the other stores all the way from the north to the south such as in Ha Noi, Vinh Phuc, Hue, Tam Ky, Tan Chau, My Tho, Cao Lanh, Soc Trang, Vi Thanh, Vinh Long, Bac Lieu, and Bao Loc. The atmosphere is evocative of the country happily preparing for Tet.

Besides bringing together so many families to make a Tet meal and create a joyful atmosphere at the start of a new year, the “1,000 Vietnamese Families Together with Saigon Co.op Cook Delicious Dishes for Tet” programme also created a deep impression in humanitarian terms since the food cooked by the families were donated to disadvantaged children.

Along with the delicious dishes made by the families, Saigon Co.op also donated hundreds of computers and thousands of gifts to orphanages and charity shelters providing family-led care and support for homeless, disadvantaged and orphaned children around the country.

The programme also marked the start of the peak shopping month ahead of the Mau Tuat Tet. 

Vietlott earned $168.6 million revenue in 2017

     

People buy Vietlott lottery tickets. The company reported a revenue of VNĐ3.8 trillion in 2017.

Viet Nam Lottery Company (Vietlott) reported a revenue of more than VND3.8 trillion (US$168.6 million) in 2017, more than double the revenue in 2016.

The company paid more than VND1 trillion to the State budget, in which individual income taxes on jackpot winners were worth more than VND98 billion.

In 2017, there were 32 Vietlott jackpot winners, and the highest jackpot was VND131.9 billion.

The southern region was the company’s biggest market, with a revenue of nearly 2.9 trillion, or 75 per cent of its total revenue.

According to a draft report of the Southern Lottery Council, lottery revenue in the region (excluding that of Vietlott) reached VND70.5 trillion, up by 5.81 per cent over the previous year.

Vietlott provides three lottery products: Mega 6/45, Max 4D and Power 6/55.

The company has presence in 34 provinces and cities with nearly 2,000 lottery ticket machines.

Vietlott’s Jackpot 1 Power 6/55 is now worth more than VND262 billion - the highest ever. 

Uber names new leader for emerging markets
     
Ride-hailing giant Uber appointed the company’s new general manager for Viet Nam, Cambodia and Myanmar, with an aim towards enhancing its services in the three Asian countries.

The new leader, Charity Safford, has 20 years of experience in leadership roles in the telecommunication sector in Eastern Europe, Africa and Asia.

“Ridesharing is changing the way cities in these countries move, and providing economic opportunities to thousands of people,” she said in a statement, adding, “Growing Uber’s business in this dynamic and fast-growing region is a fantastic opportunity, and one that I couldn’t turn down.”

According to Uber, Viet Nam was one of its first countries in Asia, while Cambodia and Myanmar are some of Uber’s newest markets globally and the company says the countries represent some of the fastest-growing markets in the region.

Safford will be supported by Cambodian General Manager Pascal Ly, who was CEO of the Credit Bureau Cambodia, and, more recently, advised SMEs in the country.

Ly has had previous stints in France, Australia, Singapore and Cambodia.

“With government recognition and support for ridesharing in Myanmar, Cambodia and Viet Nam, Uber expects to see strong growth and city launches in 2018 in all three countries,” said Brooks Entwistle, Asia Pacific Business Officer.

“Southeast Asia is ripe with opportunities for Uber, and we are leaning into the region this year and investing heavily in people, product and partnerships,” said Brooks, adding, “The entrepreneurial spirit shown by the people of Cambodia, Myanmar and Viet Nam never fails to amaze me, and I’m thrilled we will be able to serve them better with Charity and Pascal joining the team.” 

Happy Tet Fair 2018 to open city’s District 7

Happy Tet Fair 2018 on high-quality international and Vietnamese products will open at Saigon Exhibition & Convention Center (SECC) in Ho Chi Minh City’s District 7 from January 31-February 4.
Happy Tet Fair 2018 to open city’s District 7

The fair has some 300 display booths of foreign and domestic enterprises, presenting products in various fields, such as food, beverages, textile and garment, electronic and electric appliance , handicraft, cosmetics and among. There will be many special promotion programs with the discounts of 30-50 percent.

The event will also include activities, such as folk and sport games, fashion shows, food fair, tents of Ong Do (calligraphers or scholars) writing good words in calligraphy. The organizer expects to attract over 40,000 visitors during the five-day fair.

Export & import turnover of cosmetic products surges 100 percent

More than 200 enterprises trading cosmetics from Europe, Thailand, Singapore, Indonesia, Malaysia, Japan, China have joined in activities of learning about business and investment environment as well as the market share of cosmetic products especially organic cosmetic products in Vietnam. 

According to the survey of Information Beauty, Vietnam is not only the potential market in fields of consuming cosmetic products but also home to natural materials. Young customers currently tend to find organic and healthy cosmetic products. In Vietnam, ISO standards and definitions of natural products, organic cosmetic products and its ingredients have not been identified but the market has been really active.

According to Vietnam Essential Oil Association, the import and export turnover of cosmetic products in the South-East Asian country has been increased rapidly from US$ 3 billion in 2016 to US$ 6 billion in 2017.

Checking the origin of cosmetic products in Vietnam is still inadequate, so there has been widespread existence of counterfeit cosmetics, poor quality and prohibited chemicals. Many unlicensed businesses also produce cosmetics.

Therefore, the formation of prestigious products and brands being friendly to the health of consumers in Vietnam is very necessary.

It is known that more than 200 manufacturers of cosmetics will introduce and showcase their products in district 7, Ho Chi Minh City in June 2018.

Locally-made confectionery holds upper hand against foreign kinds in market

This year, confectionery market starts earlier than previous years with various kinds in beautiful designs, especially Vietnamese-made goods as Vietnamese-made products hold the upper hand against foreign kinds.

The Department of Industry and Trade in Ho Chi Minh City forecast the purchasing power for confectionery and patisserie for this Tet holiday (the Lunar new Year) falling on February 16 will increase with consumption ratio of 18,000 tons, five percent up compared to last holiday.

This time, clothes and candies, jams are displayed in shops and supermarkets nationwide. Private enterprises will purchase confectionary to offer gift baskets to employees at this time, manufacturers has boosted production with an increase of 5-10 percent prior to Tet holiday.

Kinh Do Mondelez Company makes different kinds of confectionery from inexpensive to deluxe kinds combining with locally-made and foreign-made products to satisfy consumers’ demands.

The company introduces seven groups of products such as Cosy, Lu, Oreo, Rits, Solite, Afc, Slide and Kinh Do that prices fluctuate from VND40,000 to VND194,000 per product.

It also offers a wide array of high quality, reasonably-priced products with eye-catching packaging and wrapping. In its shops, there are gift baskets available for gifting others.

Meantime, Bibica Company plans to produce 2.500 tons of candies and pastries in the holiday, an increase of 15 percent compared to last time. Fifty-six kinds of confectionery will be introduced to the consumers on Tet and the company focuses on deluxe Goody pastry which edges out foreign brands in this special. 

Moreover, the company takes heeds to eye-catching design for demand of gifts.
Hai Ha, Hai Chau, Bao Hien Rong Vang and Minh Ngoc introduce inexpensive confectionery to consumers this time. Wholesale markets namely Binh Tay and An Dong are flooded with small locally - made cakes and sweets.

At this time, foreign-invested supermarkets like Lotte Mart, Aeon Mall, and Mega Market all reserve separate shelves for foreign brands such as Orion, Danisa, LU, and Ritz. Indonesia, Singapore, Thai Lan, France, German and Malaysia made a very early entrance into supermarkets.

However, a representative of Big C supermarket said that most of confectioneries in the supermarket are Vietnamese –made sweets with proportion of 90 percent. Locally-made confectioneries and patisseries are winning over customers thanks to their eye-catching design and good quality. Vietnamese producers make it good look to promote their products. 

As per Co.opmart chain system’s statistics, Vietnamese-made commodities account for 90 percent in the supermarkets. Particularly, locally-made candies and pastries make up 80 percent with suitable prices. To support domestic businesses, Co.opmart will add home-made confectioneries into gift baskets. 

In retail shops, shop assistants said that consumers prefer home-made products of Kinh Do, Bibica and foreign-made brand name Lu and Danisa.

Dried fruits of Vinamit and Nha Be are favorite products in the market.

According to some companies’ confectionery market survey in Vietnam, in 2018, revenue of the sector will reach VND40,000 billion. The market is very potential because at present, per capita consumption of pastries and candies is around two kilogram while it is 2.8 kilogram in the world.

Moreover, its sustainable growth has attracted foreign investors yet domestic supply is abundant with various kinds and reasonable price.

Pangasius fish price remains high in Mekong Delta

Pangasius fish prices have remained high swinging from VND27,000-29,000 a kilogram, ensuring big profit for breeders in the Mekong Delta region.

An Giang province is one of localities with strength in pangasius fish farming, processing and export for the last many years. Breeders and businesses have recently been excited because of good production and consumption situations.

Mr. Doan Toi, chairman of Nam Viet Corporation (Navico), says that since early days this year, the fish export has kept increasing and the company is expected to obtain the export turnover of about US$12 million in January, up nearly $4 million over the same period last year.

The company’s export turnover hit $90 million with price averaging $2.7-3.7 a kilogram last year. According to this year plan, it will reach $120-130 million.

The prices are forecast to remain high this year but it is unclear in the following year because of technical barriers from many markets. Therefore, breeders should not expand farming area and small breeding households without connectivity with businesses should not start farming the fish to avoid risks, said Mr. Toi.

An Giang province Seafood Farming and Processing Association said that many pangasisus fish processing plants have efficiently operated with wide open markets and good prices. Stable export have brought high selling prices in the Mekong Delta.

Mr. Tran Phung Hoang Tuan, head of An Giang Fishery Department, said that the province has about 833 hectares of pangasius fish with the total output of 287,339 tons.
Cost prices now swing from VND21,000-22,000 a kilogram and selling prices are higher. The fish farming has showed positive changes after many years of price fall and losses.

Mr. Tuan said that according to lessons in previous years when price increase led farmers to broaden farming area, causing output redundancy and price drop. Hence An Giang province has tightly controlled output and ensured that the fish farming must accord plan and follow market demand.

Dong Thap province has 1,505 hectares of pangasius fish farming area with the output of 403,000 tons. Of these, 70 percent are of processing companies and 30 percent of cooperatives and farmers who have signed consumption contracts with businesses.

Mr. Nguyen Thanh Binh from Chau Thanh district says that he is about to sell 300 tons of pangasius fish and businesses have paid him VND28,000-29,000 a kilogram. Profit is expected to reach VND3 billion after deducting costs.

Explaining the high prices, companies said that export to African and Asian markets has been good. Meantime, pangasius output has not been high because of weather and fry quality.
Export difficulties sent many weak processing plants and businesses to shut down in previous years. The remaining ones have invested in modern technologies and stepped up connectivity with farmers to create high quality and value products.

The Ministry of Agriculture and Rural Development has recently organized a seminar to get opinions for a project on pangasius fry production in the Mekong Delta.

The project aims at raising the high quality fry production area to 1,000 hectares by 2020, meeting 50 percent demand of fries in the region by 2020 and 70 percent by 2025.

The ministry has proposed provinces in the Mekong Delta to create land fund and conditions for businesses to invest in fry production. Authorized agencies will assist them to build technical infrastructures concentrating in An Giang and Dong Thap provinces.

Deputy Minister Vu Van Tam said that fry production is considered to be a breakthrough phase to sustainably develop the fish farming with businesses playing an important role.

Natural & organic cosmetics possess major potential

Though ISO standards and definitions for natural and organic cosmetic products and their ingredients have always been in dispute, beauty brands globally have never ceased moving towards greener cosmetics, a workshop entitled “Growing the Natural & Organic Cosmetics Market’s Potential in Vietnam”, held by Informa Beauty a few days ago in Ho Chi Minh City, heard.

“Young consumers are even more aggressive in looking for harmless organic beauty,” Ms. Claudia Bonfiglioli, International Director of Informa Beauty, told the workshop. “As a country rich in natural ingredients, Vietnam has major potential in the natural and organic cosmetics market, either in development or consumption.”

Demand for beauty products in Vietnam is indeed huge. A recent survey found that Vietnamese people - men and women - spend about $4 per person per year on cosmetics. Vietnamese women, meanwhile, spend an average of VND140,000 ($6.15) each month, with the two most common sources in locating information being friends (70 per cent) and websites (58 per cent).

The import value of cosmetics in 2011 was just $500 million but by 2016 stood at $2 billion, according to data from the International Trade Center (ITC) and the World Bank (WB).

In that context, the second edition of the Mekong Beauty Show will be held from June 14 to 16 at the Saigon Exhibition & Convention Center (SECC), presenting more natural and organic brands from South Korea, Japan, Europe, Taiwan, Thailand, Singapore and other countries. Over 200 exhibitors are to attend.

To kick off the show, two workshops were organized recently in Hanoi and Ho Chi Minh City, attended by local manufacturers, distributors, and retailers, and more than 100 beauty professionals. This was also the first annual meeting of the “Vietnam Beauty Distributors & Retailers Club”, which was founded during the last show, in June 2017.

Local manufacturers believe that Vietnamese cosmetics can find a path to prosperity and sustainability.

Kintex, the co-organizer of the Mekong Beauty Show, brought 120 South Korean exhibitors to Vietnam last year to showcase the popular K-beauty in the country. More K-beauty exhibitors will join the Mekong Beauty Show 2018 to promote organic trends in K-beauty.

Efforts taken to reduce costs for businesses

A total of 675 business conditions in eight sectors, equivalent to 55% of the 1,216 business and investment conditions under the Ministry of Industry and Trade (MOIT)’s management, have officially been reduced, following the Government’s issuance of its Decree No. 08/2018/ND-CP amending some decrees related to business conditions within the State management scope of the MOIT.

This is good news for the business community at the beginning of the new year, which has ignited expectations towards further strong improvements in the investment environment this year. There have no longer been empty promises concerning the reduction of business conditions, but many ministries and sectors have actually taken drastic actions, in line with the spirit of creating a facilitate Government in service of both the people and enterprises.

However, according to the Ministry of Planning and Investment, by the end of 2017, only five ministries had reviewed and proposed reduction measures, with the Ministry of Agriculture and Rural Development proposing the abolition and revision of 118 conditions, (34.2% of the total business conditions under its management); the Construction Ministry proposing the abolition of 89 conditions (41.3%) and the simplification of 94 other conditions (43.7% of the total); and the Ministry of Information and Communications proposing the reduction and amendment of 51 business conditions (16%).

There still remain many other ministries and sectors which have yet to review and propose measures to cut and modify business conditions within their State management scopes. This is also one of the reasons leading to many businesses’ complaints about delays in performing administrative procedures, which cause difficulties and troubles for them. Even though the law stipulates that enterprises have the freedom to do business in the professions which are not prohibited by the law, and that business conditions are only stipulated in documents at the level of the Government’s decree or higher, there remain local authorities who grant business registration certificates, but restrict the conditions by industries and business venues in the decisions of the People’s Committees.

2017 is considered to be a year for the reduction of costs for businesses, with many outstanding recorded results. However, in reality, barriers related to costs still remain, causing difficulties for companies. Feedbacks from enterprises and business associations show that many areas still report inadequacies and high costs, such as the logistics industry with high costs and long transport time, or the health and agricultural sectors with high costs for specialised inspection.

Many enterprises and business associations have proposed that the Government should continue to focus on reducing costs for companies with drastic measures in 2018, aiming to produce clearer impacts on the business community. This requires the drastic and effective implementation and the synchronous coordination between ministries and sectors, and between the central and local level. Hopefully, after the MOIT, other ministries and sectors will put aside their partial interests, whilst continuing to strongly reduce business conditions under their management scopes, aimed at reducing input costs and creating a favourable environment for firms’ operations.

Vietnam looks to one million member business community

According to the General Statistics Office, the number of newly-established firms along with firms resuming operations set a record in 2017 with more than 153,000 companies, while the number of dissolved and suspended enterprises was 60,553. This means that the business community has over 92,000 new members, which is the highest ever. The corresponding figure was 63,644 in 2016; 35,402 in 2015; 22,438 in 2014.

In 2013, the number of newly-registered enterprises was 76,955, a year-on-year increase of 10.1%, while the number of dissolved and suspended firms was 60,737, an increase of 11.9% compared to 2012. In 2013, the business community nationwide had only 16,218 new members, equivalent to 65% of the new-registered enterprises of Hanoi in 2017 (25,160 firms).

It is clear that in spite of the continuously narrowed gap between the number of newly-registered enterprises and the number of dissolved and suspended enterprises, the increase of the number of enterprises each year is quite slow and has never reached the number of 100,000.

In other words, there should be new breakthroughs with more diversified sources and new channels so that the business community nationwide (around 600,000 active members in 2017) strives to have at least one million members by 2020, over 1.5 million by 2025, and at least two million by 2030 as targeted by Resolution No.10/NQ-TW dated June 3, 2017 at the fifth plenary meeting of the 12th Communist Party of Vietnam Central Committee.

In order to put the resolution into reality, the Government and ministries should give detailed instructions and take specific actions in order to reduce administrative burdens and abuses of power at local offices, creating a level playing field amongst businesses, as well as enhance trade and investment promotion activities, and promptly apply a range of measures to remove difficulties for businesses.

It is also necessary to build a unique environment that will foster a spirit of entrepreneurship of the nation; diversify the areas and components of start-up enterprises, especially in the fields of industry, agriculture and hi-tech services with the participation of people from all walks of life.

In addition to encouraging the formation and contribution of private economic groups to State-owned enterprises, it is also important to encourage the appropriate conversion of millions of household businesses, small traders and cooperatives into small and micro businesses.

Procedures and costs of establishment and administration of enterprises should be reduced. More attention should be paid to the tax administration, land management, accounting regimes, information provision, legal consultancy and examination and inspection, whist the capacity of commercial arbitration and people's courts at all levels should be enhanced.

It is necessary to attach importance to enhancing labour productivity in order to contribute to improving competitiveness and sustainable economic development, in addition to improving institutional reform, State governance capacity, the business environment, infrastructure, and the administrative reform, among others.

VSIP Nghe An sets new standards for living and working environments

Vietnam Singapore Industrial Park (VSIP), a leading industrial park and urban developer in Vietnam, pioneers an international-standard living and working environment in the central province of Nghe An.

After two decades of operations in Vietnam, VSIP has made significant strides with several integrated townships and industrial parks nationwide. There are about 757 tenants from 30 countries and territories with a total investment capital of more than $10 billion.

Applying management experience and operation methods from Singapore, VSIP have designed its industrial park projects with modern master planning, full infrastructure facilities, as well as good transport connections. VSIP has launched sustainable initiatives to create a world-class work environment for over 200,000 local and foreign workers. Among them, VSIP Nghe An is built on modern plans that integrate work, live, and play elements for workers and their families.

Up to now, around 210 companies have visited VSIP Nghe An to explore investment opportunities. Among them, 12 companies have committed to be tenants at the park with a total investment capital of VND860 billion ($37.84 million) and rented an area of 12 hectares.

Seven tenants have received land sites for development, while one tenant has just kicked-off operations. Another two companies are developing factories and are slated to commence operations in the first quarter of 2018. All tenants have committed to building international-compliant waste treatment systems with regular and strict inspections.

VSIP Nghe An also focuses on a healthy and clean environment teeming with verdant greenery and a variety of shade trees. The landscape has created a more attractive, pleasing environment compared to other industrial parks.

VSIP Nghe An is located in the eastern gateway of Vinh City, only five kilometres from the city. The park also boasts close proximity to other major infrastructure projects along Vinh-Hung Tay Avenue or National Highway 46A. VSIP Nghe An is also a luxury township with modern design that places emphasis on residents.

Covering an area of 83 hectares in the first phase, the project strikes the perfect balance for those desiring modern conveniences and a fresh lifestyle with a full suite of amenities in harmony with the surrounding nature. In addition to full infrastructure, VISP Nghe An integrated township and commercial complex also delivers a living place for total “work, live, play” environments.

The 2.6ha park was developed by consultants from Malaysia and Singapore with a focus on family. The park is teeming with greenery, water fountains, and has an advanced laser lighting system, playground for children, an outdoor stage, and outdoor exercise equipment. These facilities will provide workers and their families with endless hours of relaxation and myriad family activities. Diverse flora is planted across the complex to bring a fresh atmosphere.

Next to the central park, the shopping mall and food court will cover 8,000 square metres, including 32 two-floor stores for lease for coffee shops, restaurants, and other purposes. Townships and shophouses will be developed in the residential area with a wide range of amenities like 24/7 security system, a club, a swimming pool, as well as a gym and a community room.

VSIP township is slated to be rolled out in the second quarter of 2018. With the launch of the project in Nghe An, local people are expected to experience a top-notch living environment.

Chuong Duong Beverages JSC facing crisis

Chuong Duong Beverages JSC (stock code: SCD) had a bad year in 2017 with the first loss reported since listing on the stock exchange in 2006. 

The company’s net revenue in the fourth quarter of 2017 declined 47 per cent on-year to VND88 billion ($3.9 million) due to consumption falling by over 7 million litres.

While the beverage market maintains a stable growth momentum, the revenue and profit of the this company fell sharply. In 2017, accumulated revenue hit VND339 billion ($14.93 million) and pre-tax profit was a negative VND2.2 billion (nearly $0.1 million).

This is the first year this company reported losses since being listed on the stock exchange in 2006. These figures are also far different from the targeted VND494 billion ($21.76 million) of revenue and VND38 billion ($1.67 million) of pre-tax profit.

The difficulties of this company come from slow adaptation to the changing market and consumer taste, as well as lack of capital. Chuong Duong still uses old production lines from the 2000s, forcing them to outsource large portion of their production. This pushed costs and products prices too high, making it difficult to compete on the market.

The company’s approved business plan for 2013-2017 stipulated an average revenue growth of 10-15 per cent per annum. However, this target has been decreased due to competition with foreign beverage brands.

Against this context, the 40-year-old beverage brand increased discounts for distributors to accomplish its revenue and profit targets. However, it was not enough to ensure the company’s sustainable and stable development.

Distribution and sales policies are adding to Chuong Duong’s ails. The company only focused on several distributors instead of expanding its market share. The budget for marketing campaigns has been increasing in the last years, but their effectiveness is not good. 

Chuong Duong Beverage JSC is one of large beverage companies in Vietnam with some favourite products such as soft drink with gas (saxi, soda, orange, strawberry), soft drink no gas, and pure water.

Vietnam’s thirst for beer has global giants eager for a taste of the market

Every evening, large groups of workers and friends gather for lager and snacks at a beer garden along Quang Trung Street in Hanoi.

“Drinking beer is part of our culture,” said Le Tuan Linh, 32, a PR manager at a property business. He and his friends often start the evening with “1-2-3-Zo” before each downing a glass of the amber nectar.

“When we drink beer we can relax, so we often go for a drink after we leave the office,” he said, hoisting a mug of draft beer.

Vietnamese people also have a habit of discussing business over a beer, and the more lager downed, the closer they move to a deal.

Vietnam’s beer-friendly culture stands out compared with other emerging Asian countries like India and Indonesia. In Hanoi, streetside draught beer is as common as coffee.

This market for beer is becoming ever more attractive to global giants that have been racing for stakes in local brewer Habeco and its bigger rival Sabeco, both of which the Vietnamese government plans to privatize.

Recently, Thai Beverage bought a majority stake worth US$4.84 billion in Sabeco.

Thai Bev’s local unit, Vietnam Beverage Co Ltd, won the 54% Sabeco stake on offer at an auction last month.

The Sabeco deal is expected to help Thai Bev tap into Vietnam’s beer market, worth about US$6.48 billion last year, where a young population and booming economy counter the drawbacks of political resistance, a high minimum bid price and a cap on foreign ownership.

The Thai owner of Sabeco plans to increase the brewer’s annual output to 1.9-2  billion liters of beer in 2018 from 1.75 billion liters in 2017, said company execs.

The domestic market share held by Sabeco is also expected to increase to 50% from 40% on the strength of Thai Beverage’s retail network.

Many international brewers, including Australia's leading beer company Carlton & United Breweries and Denmark’s Carlsberg, have expressed interest in acquiring shares in Habeco, Vietnam’s third-largest beer company by sales.

Carlsberg has already edged closer to reaching an agreement with the Vietnamese government to increase its stake in Habeco. The brewer, which already owns 17.3% of Habeco, has been discussing its priority purchase rights with the Vietnamese government for years.

“Carlsberg, the Vietnamese government and Habeco have reached a common understanding on a number of issues during the negotiations, and we expect this will accelerate the process,” Reuters quoted a Carlsberg spokesman as saying.

The government said last month it expects a stake sale in Habeco to be completed in the first quarter of 2018.

Vietnam has one of the world’s most attractive beer markets, buoyed by a young population that consumed nearly 4 billion liters last year.

An expanding Vietnamese middle class and youthful population have helped drive a 300 percent surge in beer demand since 2002, according to market research group Euromonitor.

It estimated per-capita consumption reached 40.6 liters in 2017, making Vietnam the biggest beer consumer in Southeast Asia.

According to research group Nielsen, the market for canned and bottled beer, not including draft, is worth US$2 billion a year, accounting for 23% of Vietnam’s total fast moving consumer goods market, and growing in double digits.

“We call it a superstar category,” said senior executive at Nielsen Cao Thuy Linh. Brewers have benefited hugely from Vietnam’s growing thirst for beer.

The market share of Dutch group Tiger and eponymous brands in Vietnam increased to 23% in 2015 from 17% in 2009, according to market research organizations Canadean and Bernstein.

The Financial Times quoted Andrew Holland, an analyst at French bank Societe Generale, as estimating that Vietnam accounts for 10% of Heineken’s profits, and is its second-biggest generator of earnings after Mexico.

The local beer market is expected to thrive in the coming years as the Vietnamese thirst grows.

Vietnam will represent half of Japan’s Sapporo Holdings Ltd’s overseas beer sales in the next decade, Bloomberg quoted Mikio Masawaki, general director of Sapporo’s Vietnamese brewing unit, as saying.

At the crowded beer outlet, with young female waitresses wearing short skirts displaying the logos of local and international brewers, Linh said he will continue to drink beer with friends two or three times a week.

“They are happy times for me,” he said. “There's not much entertainment around here, so if I did't drink beer I don't know what I'd do with my free time.”

Vietnam’s steel export enjoys 34-percent growth

Vietnam exported 3.75 million tonnes of steel in 2017, a year-on-year increase of 34 percent, according to the Vietnam Steel Association (VSA). 

The VSA’s data showed that the country’s steel output was 21.062 million tonnes, up 24.3 percent against the previous year. 

Domestic steel consumption stood at nearly 18 million tonnes, 20.7 percent higher than the last year.

Notably, in the year, Vietnam shipped 1 million tones of building steel abroad, a year-on-year increase of 62 percent.

Meanwhile, the total volume of steel products imported decreased by 14 percent compared to 2016. 

The association forecasted that the steel industry’s growth is likely to expand between 20-22 percent in 2018.

Work starts on fruit processing centre in Gia Lai

Construction on a fruit and vegetable processing centre began in the Central Highlands province of Gia Lai on January 21.

Financed by Dong Giao Foodstuff JSC, the 6ha-centre will include three factories with a total production capacity of 30,000 tonnes of products annually.

Once operational in July, the centre is forecast to post a revenue from 1.8 trillion VND (78.95 million USD) to 2 trillion VND (88 million USD) each year, contributing up to 4.4 million USD to the State budget while creating thousands of local jobs, the company’s representatives said at the ground breaking ceremony.

In his speech at the event, Minister of Agriculture and Rural Development Nguyen Xuan Cuong hailed the company’s decision to kick off the project, which comes in line with the Government’s direction in promoting the application of advanced technology in farming production and in establishing close links from production to processing and consumption.

According to Cuong, the project will help create a breakthrough for the development of provincial agriculture and that of the region as well.