Clipper Race: Da Nang seminar connects businesses

Nearly 20 foreign enterprises and 40 enterprises from Da Nang operating in numerous fields, including garment and textiles, transportation services, shipbuilding, tourism, and banking, gathered at a seminar in the central city on February 25.

The seminar was part of activities to mark the event Da Nang hosts as a destination of the 2015-2016 Clipper Round the World Yacht Race.

It offered a chance for local enterprises and Clipper Race partners to meet, and seek business cooperation opportunities.

William Warl, Clipper Ventures CEO, said that participating racers have to date stopped over in 14 cities in six continents, where the organising board coordinated with local authorities to hold seminars to promote trade connectivity among businesses.

Through the seminar in Da Nang, Clipper Race partners eyed enterprises operating in the fields of ship management and building, tourism, import-export services with Europe, petrol business, logistics in the transport sector, real estate, and wood products.

As of early 2016, more than 14,500 enterprises registered to run business in Da Nang with a total capital of nearly 80 trillion VND (3.6 billion USD). Among them, around 500 enterprises are participating in import-export activities, mainly in garment and textiles, seafood, processed rubber, child toys, power equipment and electronics.

As the world's longest ocean race, the 40,000-nautical mile Clipper Race 2015-2016 is one of the most competitive and challenging sports activities in the world. It started in London on August 30, 2015 and takes 11 months to sail around the world, crossing South America, Australia, Asia and the US.

Japan’s Kyushu region wishes to invest in Ha Nam

A delegation from Japan’s Kuyshu region went on a fact-finding tour of the northern province of Ha Nam on February 25 to seek investment opportunities in the locality.

The delegation was led by Masaki Kawahara, Director of the region’s Bureau of Economy, Trade and Industry.

At a working session with the delegation, provincial Party Committee Secretary Mai Tien Dung said that Ha Nam wants to attract more investment from foreign firms, especially in support industry and high-tech agriculture.

The local authorities will give incentives on land and building infrastructure, aiming to encourage investment in the locality, he added.

Dung said Japanese businesses can hire land for at least 20 years for agricultural production, also receive land to build accommodation for their employees and be exempted from land hiring costs for pilot planting.

For his part, Masaki Kawahara highly valued the investment environment in the province, saying that Ha Nam has great potential to cooperate with the Kyushu region, especially in high-tech agriculture.

He expressed his hope that the province will continue creating favourable conditions for businesses from Japan in general, and from Kyushu in particular, to invest in the locality.

In the first 11 months of 2015, Ha Nam lured 62 projects worth 693 million USD, including 33 foreign-invested.

Vietnam named as Korean key export market

The Korea Trade-Investment Promotion Agency (Kotra) classifies Vietnam as one of four strategic export markets, the Korea JoongAng Daily reported on February 25.

As such, the agency will focus on connecting its producers with consumers in those four markets, namely Vietnam, China, Iran and Brazil in the first half of 2016.

Vietnam and China have joined a range of free trade agreements (FTAs); Iran has seen sanctions lifted; Brazil is the host of the upcoming Summer Olympics. These factors, among others, contributed to making the four markets appealing to Korean investors.

Kotra stresses the role of local small and medium-sized businesses in effectively entering the four potential markets and securing success.

Speaking at a press conference on February 24, Kotra CEO Kim Jae-hong stated his agency’s representative offices in these markets will support the initiative.

Last year, Vietnam was the third largest importer of the Republic of Korea. Kotra said it would aid local companies to capitalise on the FTA signed between the RoK and Vietnam, which now enters the second year.

ANZ named best trade finance provider in Vietnam

The Australia and New Zealand Banking Group Limited (ANZ) has recently honoured as the best trade finance provider in Vietnam , presented by the Global Finance magazine.

The bank also received the title for its performance in Australia , New Zealand , and Cambodia.

The editorial review board of Global Finance selected the best trade finance providers based on input from industry analysts, corporate executives and technology experts.

In addition, a poll of Global Finance’s readership was conducted in order to increase the accuracy and reliability of the results.

Criteria for choosing the winners included: transaction volume, scope of global coverage, customer service, competitive pricing and innovative technologies.

ANZ was one of the first foreign banks to operate in Vietnam since 1993.

The bank is currently providing a number of financial services, including retail banking, assets management, consumer finance, and institutional and commercial customers.

Vietnam, Mexico fuel economic cooperation

Vietnam and Mexico will shake hands on a multi-faceted cooperation between the two economies, especially after their parliaments approve the Trans-Pacific Partnership (TPP) Agreement which was recently signed in New Zealand.

During a meeting in Mexico City on February 24, Ambassador Le Linh Lan and Mexican Minister of Economy Ildefonso Guajardo Villarreal hailed Vietnam and Mexico as active members of the world’s largest free trade pact.

The Vietnamese diplomat informed the host about preparations for the APEC Summit in Vietnam in 2017, describing this as a golden opportunity for Vietnam to popularise itself as a renewed, dynamic and fast-developing country with great potential.

She said Vietnam is willing to create the best conditions for Mexican businesses to operate in the Southeast Asian country.

Minister Villareal expressed his pleasure in discussing with the Ambassador issues of mutual interest, particularly trade and economics.

Mexico will participate in the APEC Summit in Vietnam and boost economic collaboration with the country in and out of the TPP, he said.

Campaign motivates businesses to produce high-quality goods

The positive outcome of the six-year campaign “Vietnamese prioritise Vietnamese goods” has motivated businesses to update technologies and diversify products to increase consumer confidence and enhance their competitiveness both at home and overseas.

Chairwoman of the Association of High-Quality Vietnamese Goods Producers Vu Thi Kim Hanh said many businesses have recognised the significance of the domestic market and are looking to improve the quality of products and outline strategies for distribution and marketing.

According to statistics, up to 92 percent of questioned customers said they are interested in the drive while 63 percent confirmed they give priority to Vietnamese goods.

Made-in-Vietnam products make up 80-90 percent of the market share at retail networks nationwide, she said, adding that traditional markets and trade centres have gradually shifted to selling locally-made products.

In 2015, the Ministry of Industry and Trade directed localities to build 29 retail sites selling Vietnamese products across 23 cities and provinces, prioritising mountainous and remote areas.

Vietnamese representative trade offices abroad have also promoted the campaign among expatriates in 109 nations and territories around the world.

Deputy head of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade Ta Hoang Linh said that trade fairs in foreign markets have helped Vietnamese goods to win confidence thanks to their diversity, reasonable prices and quality.

The export turnover of staples such as agro-forestry-fisheries products, garment-textiles and footwear has increased, he noted.

Deputy Minister of Industry and Trade Ho Thi Kim Thoa said 356 of the 618 trade promotion projects had focused on developing the domestic market, especially mountainous, border, sea and island areas.

The ministry has coordinated with localities to organise workshops to forge connectivity between managers, manufacturers and businesses in a bid to develop an effective distribution system, she added.

According to Thoa, the campaign aims to raise Vietnamese products’ market share at traditional distribution channels in remote, far-flung and rural areas to 80 percent by 2020.

Customs to update operations

The General Department of Customs would enhance efforts of administrative reforms and modernisation this year to create favourable conditions for imports and exports, a conference heard yesterday.

Speaking at the conference to raise measures to improve customs operations in 2016, General Director Nguyen Ngoc Tuc said that customs modernisation was just at an initial stage, and added that greater efforts were required.

Tuc said that the customs authorities would enhance co-operation with relevant ministries to accelerate the simplification of import-export related administrative procedures, such as national and ASEAN single window mechanisms and special checks on imported and exported products.

The effort aimed to reduce the customs clearance time for imported and exported goods equal or even lower to ASEAN-4's average, following the Prime Minister's Decision 253/QD-TTg issued recently about thrift practice and waste combat.

This was one of the four major tasks of the Customs General Department this year – the first year of a new five-year customs modernisation plan, in addition to fulfilling budget collection targets, enhancing customs supervision and developing a healthy customs staff.

Minister of Finance Dinh Tien Dung urged the customs authorities to enhance the efficiency of smuggling prevention, seeing the important role of the customs departments in the battlefield against smuggling.

Official statistics revealed that last year, the customs authorities handled more than 19,700 violation cases, worth VND462.5 billion (US$20.6 million) of goods, and collected VND232.5 billion ($10.3 million) of fines to the budget.

At the end of last year, the customs authorities signed up with 28 commercial banks to collect the budget through banks to make it convenient for tax-payers. Last year, the customs departments collected more than VND261.8 trillion ($11.64 billion) to the State budget, equal to 100.7 per cent of estimate.

Da Nang-Quang Ngai Expressway sees delays

Site clearance has not been finished on nearly seven per cent of the total length of the Da Nang-Quang Ngai Expressway, due to difficulties in compensation, a conference heard on Tuesday.

At the conference on accelerating the construction of the expressway, the Quang Nam Province's People's Committee said that nearly 92 kilometres of the expressway went through the province, five kilometres of which have yet to be cleared.

Under the Ministry of Transport's request, part of the expressway from Da Nang City to Quang Nam Province's Tam Ky Township must open for traffic by the end of this year. The project is currently under alert for its slow progress.

According to authorities in Phu Ninh, Nui Thanh districts and Dien Ban Township, most households have not yet received compensation money and have not handed over land for the project, claiming the compensation was much lower than market value.

In Dien Ban Commune alone, more than 100 households have not yet moved, saying that they disagreed with the compensation levels.

Nguyen Dinh Thanh, resident in Dien Ban Commune, said that his family did not want to be resettled or receive compensation money as the land they were offered was not satisfactory.

The Quang Nam Province's People's Committee said that it was high time that representatives of districts that the expressway ran through and the management board of the expressway take measures to solve the problem.

Authorities in Phu Ninh, Nui Thanh districts and Dien Ban Township were asked to organise dialogues with affected households to explain misunderstandings while reviewing and dealing with shortcomings of site clearance work.

The provincial committee also asked local authorities to focus on creating jobs for affected people or help them switch jobs.

It required the contractor unit to repair damaged roads caused by construction units.

The Da Nang-Quang Ngai Expressway, with a total investment of nearly US$1.7 billion, started construction in 2013.

The expressway is about 140 kilometres long. It has great significance for boosting social-economic development and national defence-security in the central region and improving international transportation between Laos, Cambodia and Viet Nam through the East-West corridor to seaports in central Viet Nam.

SBV asked to keep lending limits

The HCM City Real Estate Association (HOREA) has proposed the State Bank of Viet Nam (SBV)'s regulations on lending limits and capital adequacy ratio requirements for credit institutions, including branches of foreign banks not be changed at the moment.

The proposal was made after the SBV had released draft amendments to Circular 36/2014 which states that the credit institutions could use 60 per cent of their short-term funds to provide medium-and long-term loans and the credit risk ratio of the institutions' receivables from the real estate sector is 150 per cent.

The draft states that the ratio cap for using short-term funds to provide medium- and long-term loans will be 40 per cent, down from the current 60 per cent. The credit risk ratio of the institutions' receivables from the real estate sector will rise to 250 per cent from 150 per cent.

The amendment is meant to restrain the liquidity risk and the mass of credit flow into the property sector.

However, according to the HOREA, the regulations have been in effect only one year and are having a positive impact on the economy and the growth of the real estate market.

The macroeconomy is growing with inflation kept under control, it said.

HOREA's proposal said the risk of a real estate bubble this year could be reduced if the State takes effective measures if speculation appears, such as antispeculation taxation, credit tools and other tools related to land and land-usage planning.

HOREA expects the ratio cap will be 50 per cent, not 60 per cent in case the amendment is not delayed.

Commercial banks are hoped to take further steps in considering the feasibility of property projects and prestige and mortgages of the investors. Supervision of the lent capital flow should be tightened to ensure effectiveness and safety, the association recommended.

HOREA is afraid that those changes may have negative impact on the development of the real estate market, which started bouncing back from its crisis two years ago. The impact could affect property developers, traders and low income end-users.

"Our real estate market depends heavily on banking credit and capital mobilised from buyers, with the latter being mainly sourced from banking credit," HOREA's proposal said.

Economist Dinh Tuan Minh said the amendment on the cap ratio was the correct policy to ensure banking system security because the over-use of short-term funds for long-term loans could cause liquidity problems.

The draft change on the credit risk rate, however, is an intervention in the operation of commercial banks.

He told Thoi bao Kinh te Sai Gon that commercial banks should be allowed to decide mortgage levels for specific sectors, while the central bank could provide a common floor rate for all sectors.

"The State Bank's intervention, including credit restraint, means a higher interest rate for this sector," said Minh, adding that it would increase costs in the real estate business.

Thus, investors would weigh the pros and cons of their projects and buyers would face a more difficult access to loans, which would lower demand from buyers, both end-users and traders," he said.

In fact, many buyers of apartments still under construction have used them as mortgage to borrow money from banks for purchases, while the developers also mortgage the projects for their bank loans. That means a project is mortgaged twice.

As of last September, outstanding loans to the real estate sector stood at more than VND358 trillion (US$16 billion), a growth of 14.59 per cent, 2.5 per cent higher than the general credit growth rate.

The amount accounted for more than 8 per cent of the total outstanding loan value.

Domestic exporters urged to restructure to utilise TPP deal

Vietnamese exporters should restructure their production to improve profit and enjoy preferential of the Trans-Pacific Partnership Agreement (TPP), Tran Tuan Anh, deputy minister of Industry and Trade said.

Anh said agro-forestry and fishery sector has strengthened and has been one of Viet Nam's key export products.

However, the products would lose their strengths in the middle- and long-term if businesses do not restructure production, thus bringing in higher added value, he said.

"This was the reason that Viet Nam has issued the export strategy by 2020 with a vision to 2025 to take advantage of international integration," he added.

The wood sector has been considered one of the key export staples with an average turnover of US$6 billion.

However, domestic wood exporters have focussed on products of sawdust, wood plank, ply wood, and fibreboard, in addition to furniture. Apart from furniture, the remaining products have been exported to South Korea, Malaysia, Taiwan and Japan as input materials for production of paper, medium fibreboard and interior furniture. These input materials will not be given tax reduction in the TPP.

Nguyen Tuan Viet, general director of Vietgo, one of the companies specialising in import-export consultancy, said the various sectors in the country would have to change their structure as foreign firms with big capital and modern technologies would pour their investment into Viet Nam to enjoy tax preferential under the TPP.

"There will be a wave of businesses from China and Sweden, the leading wood exporters in the world, to invest in furniture production in Viet Nam," Viet said.

Nguyen Ton Quyen, chairman of the Timber and Forest Product Association of Viet Nam (VIFORES) said several wood producers have to strive to change their technology to produce products with higher quality and added value.

"This is one of the critical solutions needed to take advantage of integration," Quyen said.

In addition, several agricultural products such as coffee, dragon fruit and lychee would be hard to ship in big amounts to the big markets of the US and Japan which have strict food requirements. Viet Nam would benefit most from the countries as the TPP comes into effect.

Being one of the key export products, the garment and textile sector has witnessed difficulties as most of the producers have been small- and medium-sized enterprises. With strict regulations on the certificate of origin, garment and textile firms would not enjoy a tax preferential if they still rely on imported materials.

Vietgo's CEO said they received five contracts from China in December to seek cotton and down and feather for jacket production.

"This has been a vital trend as the TPP will take effect soon. If local businesses do not change, they will become employees in their own country," he said.

He recommended that Vietnamese firms should invest in design, and material production to manufacture high quality products that penetrate demanding markets such as the US, Canada and Japan.

Quang Ninh welcomes nearly 2 million visitors

The northern province of Quang Ninh received nearly 2 million visitors in the first two months of the year, up three per cent from the same period last year with international visitor numbers increasing by 10 per cent, according to the provincial Department of Culture, Sports and Tourism.

Spiritual relics like Yen Tu Buddhist relic, Ba Vang Pagoda, Cua Ong Temple, and Cai Bau Pagoda attracted the most visitors, it said.

The province's localities have organised art performances and sports and traditional games for visitors.

The province reported that revenues from tourism in the period are estimated at more than VND1.2 trillion (US$53.7 million), a year-on year increase of 14 per cent.

Boasting a 250km long coastline, Quang Ninh is famous for Ha Long Bay, one of the world's natural wonders. Tourists are also attracted by its many beautiful beaches like Bai Chay, Titop, Quan Lan, Minh Chau, Ngoc Vung, and others.

Agro-forestry and seafood exports on the rise

Agro-forestry and seafood exports in the first two months of this year increased slightly to US$4.2 billion or up 5.5% against the corresponding period last year, according to the Ministry of Agriculture and Rural Development (MARD).

Of the figure, agricultural exports are estimated at US$1.9 billion, up 4.2% while seafood exports are US$938 million (up 11.9%) and forestry exports are US$1.1 billion (up 8.2%).

MARD also reported that February’s agro-forestry and seafood exports are about US$1.88 billion.

UK releases guidebook on business in Vietnam

The “Doing Business in Vietnam Guide” has been launched to inform foreign investors about the quirks of the Vietnamese business environment.

The guide was jointly produced by International Market Advisor and the UK Institute of Export, with support from the British Consulate General in Ho Chi Minh City, the British Business Group Vietnam, and e-Regulations Vietnam.

Leading British firms in Vietnam, including investment fund Dragon Capital, also collaborated in the programme.

The main objective of the Doing Business in Vietnam Guide is to provide foreign investors with a basic knowledge about Vietnam, including an overview of its economy, business culture, and potential opportunities.

Moreover, the guide aims to identify the main issues associated with initial research, market entry, risk management, as well as cultural and language issues - making it a must read, particularly useful for new investors and first-time exporters in and to Vietnam.

A compilation of essential service providers are also included in the guidebook, which includes Atlas Industries, British International School, Dragon Capital, and NashTech Global.

“In 2015, Dragon Capital has cooperated with many British organisations and firms to develop the Doing Business in Vietnam Guide.

We are honoured to sponsor and contribute to this programme as we hope to present the most helpful and comprehensive guide to investors in Vietnam,” said Dominic Scriven, executive chairman of Dragon Capital.

Meanwhile, British Ambassador to Vietnam Lever Giles noted in the Guide’s foreword that the UK is committed to growing its trade and investment relationship with Vietnam, as well as providing the best support and service to British firms entering the market.

Following the launch, the Guidebook can now be accessed via the Doing Business Guide UK website ( vietnam.doingbusinessguide.co.uk ).

A printed version and mobile application are also available.

Further assistance for investors can be sought from the UK Trade and Investment Team in Vietnam.

Doosan Vina oil refinery equipment shipped to Turkey

The RoK-owned Doosan Heavy Industries Vietnam (Doosan Vina) is working hard to complete a contract to produce equipment for Aegean, a Turkish oil refinery company, said Deputy General Director Kim Yong Soo.

The company has already shipped 37 oil pressure tanks and five heat exchangers weighing 750 tonnes overall under the contract.

These equipment pieces are of the third batch sent to Aegean, who ordered a total of 76 pressure tanks and nine heat exchangers under a pact sealed in July 2014.

Doosan Vina is mobilising 70% of its workforce to work on the fourth batch of ten pressure tanks and four heat exchangers to be shipped by March 10.

Aegean is capable of processing 214,000 crude barrels on a daily basis.

Doosan Heavy Industries Vietnam (Doosan Vina) is fully invested by the Republic of Korea and its CPE plant is located in the Dung Quat Economic Zone, central Quang Ngai province.

Eurowindow partners with Bunka Shutter to diversify products

Japan’s Bunka Shutter and Eurowindow have signed the strategic partnership agreement minutes to diversify and develop new products for construction works through retail systems in each other’s market.

Bunka Shutter will support Eurowindow in business administration and production management to make its operation more effective.

Junichiro Kanda, executive officer& Manager-Overseas Business, Bunka Shutter Co. Ltd.and chairman at Bunka Vietnam said the demand of construction materials for high-rise buildings, residential quarters, shopping malls and factories in Vietnam will increase significantly. The partnership will offer a good opportunity to expand the production of construction materials and windows.

He expressed delight at becoming the largest shareholder of Eurowindow (30% of shares) and hoped to cooperate with Eurowindow to develop the leading brand in the ASEAN region in the field of production of construction materials in the time ahead.

Slumping prices put Vietnam oil firms in hot water

With global oil prices repeatedly falling, many major oil and gas businesses in Vietnam are taking all possible measures to maintain profitable operations.

Vietnamese oil firms have had to reduce production, lay off employees, and cut costs at a time when oil barely fetches US$30 a barrel, having slid from US$100 in mid-2014.

The current oil price is far from the estimates Vietsovpetro, a Russian-Vietnamese joint venture for oil and gas exploration, prepared in its 2016 business plan.

This year Vietsovpetro targets US$2.1 billion in revenue from the exploration of five million metric tons of oil, anticipating the price would average US$55 a barrel. But with oil at US$30 a barrel, the company only achieved half of that target.

An engineer works on an oil rig operated by Vietsovpetro off Vung Tau City, located in southern Vietnam.

In 2015 the company also fell short of their target revenue when the average barrel price was US$56.1 rather than the estimated US$75 a barrel.

It cost Vietsovpetro approximately US$24 to produce a barrel of oil last year and the current price means little likelihood of profit for the company, according to a seasoned oil and gas engineer.

The company has been trying to cut costs by ceasing some expensive, high-risk exploration projects and delaying several others.

“We have to stop exploring oil in some distant waters to save money for other essential spending,” said Nguyen The Kim, head of secretariat with Vietsovpetro.

“Although this affects our long-term and stable development strategies, no one will dare throw tens of millions of US dollars to oil exploration during these tough times.”

The company has also had to reduce the number of engineers at four of its oil rigs, and closed some platforms with poor production.

Another oil and gas giant, state-run PetroVietnam (PVN), is in the same boat.

Last year PVN managed to cut costs by US$3 billion and is currently seeking more cuts to avoid a global oil price development that is “causing myriad difficulties to the company,” deputy general director Le Minh Hong said.

The average production cost of PVN is currently US$24.4 a barrel, and the company is expected to trim production to 16 million metric tons, two million metric tons lower than last year.

The collapse in oil prices has also impacted many of the oil refineries PVN is developing, including Dung Quat, the country’s sole oil processing facility.

While Gazprom Neft had planned to buy a 49% stake in the US$3 billion facility, based in the central province of Quang Ngai, the Russian oil firm last month asked to cancel talks on the proposed purchase.

Gazprom Neft, the oil arm of top global gas producer Gazprom, said the move came after Vietnam refused to approve several preferential conditions it had requested, whereas PVN said the slumping oil prices could be held responsible.

The Russian firm may have decided to cease its investment expansion as a result of any difficulty they might be experiencing in the wake of the drop in oil price, according to PVN.

This could be the same reason why Qatar Petroleum withdrew its interest in investing in the PVN-developed Long Son refinery in the southern province of Ba Ria-Vung Tau, the company added.

RoK’s Shinhan Investment opens securities firm in Vietnam

Shinhan Investment Corp., a member of the Republic of Korea (RoK)’s Shinhan Financial Group, has inaugurated a securities firm in Ho Chi Minh City, as part of its plan to secure new growth globally.

Shinhan Securities Vietnam was established less than a month after the Seoul-based securities brokerage and investment banking company acquired a 100% stake in a local stock firm.

It has a charter capital of 8 billion won (US$6.47 million) and is expected to contribute to such businesses as investment banking, initial public offering, and mergers and acquisitions of Shinhan Financial Group.

Shinhan Financial Investment Corp. President Kang Dae-Suk said Vietnam is a potential market, adding that Shinhan Bank will support Shinhan Securities Vietnam in its business expansion and growth plan in the Southeast Asian country.

Vietnam also plays a very important role in the initial stage of Shinhan Financial Investment’s plan to penetrate the Southeast Asian region, he added.

In July 2015, Shinhan Investment Corporation got approval from Vietnam’s State Securities Commission to buy the entire stake of Ho Chi Minh City-based Nam An Securities.

The transaction saw seven individual shareholders of the Vietnamese firm, whose equity was some VND25.2 trillion (US$1.16 billion) as of the end of 2014, transfer 14 million shares to the Korean investor.

Vietnam used to set a foreign ownership cap of 49%, but the ceiling was lifted for some firms starting September 2015.

The acquisition of Nam An Securities was therefore seen as the first case in which a foreign investor is allowed to buy the entire stake of a Vietnamese entity.

Upon the transaction, Nam An Securities was then the second 100% foreign-owned stock firm in Vietnam, besides Thailand’s Maybank Kim Eng Securities.

Vietnam showcases crafts at Ambiente 2016

This year Ambiente – the globe’s largest international trade fair for consumer goods – held in Germany every February recorded an increase in internationality with regards to both exhibitors and visitors.

The fair, organized by Messe Frankfurt, took place at Frankfurt am Main on February 12-16. All told, 137,000 visitors from 143 countries (against 134,600 in 2015) attended the event.

With support from the Vietnam Association of Small-and Medium-sized Enterprises (VINASME), 14 local companies showcased their crafts imbued with beauty and traditional culture at the event, hoping to cultivate global markets and develop new business.

Notably, the proportion of visitors from outside Germany accounted for 55% of the total (compared with 53% in 2015) – more than ever before, said Vice Chairman To Hoai Nam of VINASME.

Nam said the top ten visiting nations after Germany in descending order of size were Italy, France, Spain, the Netherlands, UK, China, USA, Switzerland, Turkey and the Republic of Korea.

They viewed the wares of 4,387 exhibitors (against 4,814 exhibitors in 2015) from 96 countries spread over 308,000 square metres of 27 halls at the Frankfurt Fair and Exhibition Centre.

“The whole world does business at Ambiente,” said Nam as Frankfurt in February is where the trends are set for the international consumer-goods industry for the upcoming year.

A representative of exhibitor, Hien Uyen Vi Co. Ltd (from Ho Chi Minh City) was also upbeat about the internationality of the fair noting that the company signed three high dollar contracts with Spanish and Dutch partners at it.

Meanwhile Lavanto Co Ltd (from Binh Duong Province) was equally enthusiastic, having reportedly signed 40 deals with foreign companies along with obtaining a myriad of leads for work that look very promising.    

We are very pleased with the dollar value of business we obtained at the fair and the positive feedback received from our worldwide business partners, said a representative of Lavanto Co Ltd.

He said as the leading trade fair in the globe for the consumer goods industry, Ambiente continues to be the most important platform for Vietnamese businesses to present their wares.

Whether their products are traditional or modern, if businesses want to reach new target groups to sell their products then they have to attend trade events like Ambiente, he underscored.

And, of course, both companies said they definitely are looking forward to coming back again next year.

The days in Frankfurt were certainly well spent said VINASME Vice Chairman Nam, because nowhere else can Vietnamese businesses find such a wide variety of suppliers covering the entire spectrum of tableware, kitchenware, gift articles and home accessories.

If Vietnamese companies want to be trendsetters in the marketplace and competitive in retailing consumer goods, then they should’ve been at Ambiente, said Nam.

The saying is that businesses must either be here in Ambiente or ‘be square’ and its true, said Nam, adding that if Vietnamese businesses want to access foreign markets they can’t afford to miss these types of trade events.

Ambassador to Russia pays working visit to Moscow Commercial Centre

Vietnam Ambassador to Russia Nguyen Thanh Son on February 25 visited Moscow Trade Centre (MTC) or Liublino Market where many overseas Vietnamese are running business.

Son presented gifts to Ovs, conveyed Tet wishes on them and encouraged them to overcome difficulties in their business.

MTC general director Omar Murtuzaliev told Son that around 5,000 OVs are working at main trade centres in Moscow. This united team works effectively.

Murtuzaliev said about OVs’ strength in producing light industrial products and hoped to receive support from the two governments and the Vietnamese ambassador to boost cooperatives ties.He expressed his willing to ensure legitimate rights of OVs at the MTC and legal procedures for them to work effectively.

For his part, Ambassador Son briefed the host on Vietnam’s policies and guidelines to foster Vietnam-Russia comprehensive strategic partnership through trade and investment ties.

Duong Viet Dung, director of MTC’s OVs managing company , said despite a number of difficulties in current Russia , the OVs are strictly following the centre’s regulations and supporting each other. Not many Vietnamese brand names are available at the centre while Russian customers’ demands for Vietnamese goods are increasing, Dung said.

Ambassador Son said he hoped more Vietnamese products will be traded at Moscow commercial centres in the coming time, helping to spur trade and investment cooperative ties between the two countries.

POSCO Energy to build second thermal power plant in Vietnam

POSCO Energy Co. said on February 22 that it signed a memorandum of understanding (MOU) agreement on Sunday with Nghe An provincial government to build a thermal power plant, the second coal-fueled power plant to be built by the South Korean company in Viet Nam.

POSCO Energy Co will build a thermal power plant in Nghe An Province. The plant will produce an annual power capacity of 1200 megawatts (MW), with two 600 MW-reactors. -Photo fuelcellenergy.com

According to POSCO Energy, the company will build Quynh Lap II thermal power plant in Vinh City, Nghe An province in northern central Viet Nam, about 270 kilometers away from Ha Noi. The plant will produce an annual power capacity of 1200 megawatts (MW), with two 600 MW-reactors.

The energy arm of South Korea's steel giant Posco completed construction and started operations of Mong Duong 2 coal-fired thermal power plant in northern Quang Ninh Province in Viet Nam last October.

The provincial government has been inviting private companies to build power plants that could steadily feed power to the special district for heavy industries that will be formed to recruit steel and machinery manufacturers. The South Korean energy company will transfer ownership of the plant to the local government after it builds and operates the plant for a certain period based on the contract.

Yoon Dong-jun, POSCO Energy president, hoped that Quynh Lap II thermal power plant construction will help it further enhance its presence in Viet Nam. — pulsenews.co.kr.

TRENDnet and Digiworld partner up

Digiworld, a major Vietnamese distributor of electronic devices, will be responsible for the market development and product distribution activities of American firm TRENDnet in Vietnam. The wide range of products in this partnership includes wireless surveillance cameras, switches, and Power-over-Ethernet solutions.

Founded in California in 1999, TRENDnet is a leading provider of networking and surveillance solutions for small-to-medium-sized businesses and home users. The firm’s expansive product portfolio covers home automation, wireless, wired, surveillance, connectivity, and peripheral devices. This new partnership with Digiworld is TRENDnet’s first venture into Vietnam and is a step towards tapping the vast potential of the Southeast Asian market.

“We are proud to announce that Digiworld has been appointed as the main authorised distribution partner in Vietnam by TRENDnet. This partnership will allow us to continue to offer world-class quality and innovative networking hardware to the Vietnamese entrepreneurial community,” said Doan Hong Viet, chairman and CEO at Digiworld.

Digiworld is ranked among the top three retailers of technological devices in Vietnam. With a venerable 18 years of experience, the firm now distributes 24 global electronics brands on the Vietnamese market via an extensive channel of 6,000 re-sellers nationwide.

In 2015, Digiworld recorded VND105 billion ($4.69 million) in post-tax profits, an 18-per-cent slump compared to the same period in 2014. The firm attributed this plunge to a major investment in a new subsidiary for logistics services, which will start operation this year. Digiworld also plans to open five more stores for technical service in Vietnam in 2016 and introduce new product lines from India, France, and the US, mainly in the smartphone and laptop sector.

With earnings from the new subsidiary and a wider range of products on sale this year, Digiworld expects to increase its 2016 revenue and post-tax profits by 28 per cent and 31 per cent, respectively.

Vietnam asks importers to check shipments after Mars chocolate recall

The Vietnamese food safety watchdog has requested 15 food importers to check stocks of Mars Inc. products, in the wake of a voluntary recall of four of the U.S. confectionery maker’s flagship brands.

Businesses importing the sweets should report the number of Mars products they have imported and sold, as well as any unsold inventory, to the Vietnam Food Administration (VFA) by February 27, the watchdog said on its website on Thursday.

The decision came one day after Mars announced the global recall of Snickers, Mars, Milky Way, and Celebrations products made in its Netherlands factory.

The New Jersey-based company called the move a “precautionary decision,” after a small piece of red plastic was found in a Snickers bar in Germany.

The recall concerns only specific products manufactured at the Netherlands facility during the production period from December 5, 2015 to January 18, 2016, according to the announcement.

With affected Mars products shipped to 55 countries, including Vietnam, the chocolate manufacturer quickly moved to notify food safety agencies around the world of the recall.

Mars said only products with packaging labeled with the “Mars Netherlands” tag are affected by the recall, adding that the easiest way for consumers to determine whether they have a recalled product is to inspect the label.

“If it is not labeled 'Mars Netherlands,' it is not included in the recall,” it said.

On January 8, a consumer in Germany found red plastic in a Snickers bar and sent it back to the company, according to Reuters.

Mars said in Wednesday’s announcement that the company believed it was “an isolated incident.”

According to Reuters, Mars is one of the world's largest food companies.

The confectioner currently produces 29 chocolate brands including M&M's, Galaxy, Twix, Bounty and Maltesers.

Aside from chocolate, Mars makes Wrigley gum, Uncle Ben's Rice, Dolmio pasta sauce, and Pedigree pet food.

Our City Urban Area receives $50 million investment

Hiep Phong (Qiafeng) Vietnam Co., Ltd., the developer of the Our City township Haiphong city’s Duong Kinh district, signed an investment contract yesterday with strategic partner Chinamall Holdings Pte Ltd on building Vietnam International Commercial Centre right in the township.

Accordingly, the centre, covering 36,000 square metres of space and worth approximately $50 million in investment capital, is expected to be put into operation in 2017. Global e-commerce giant Alibaba Corporation has agreed to pump money into the project.

The project’s strategic investor Chinamall was the developer of flagship Dubai Mall, which attracted more than 3,000 businesses. In 2010, Chinamall built Asia International Commercial Centre on a total area of 15,0000sq.m, which debuted on June 1, 2013.

Enterprises struggle with recruitment post-Tet

According to a recent announcement from JobStreet.com Vietnam, the number of job vacancies posted on its website after Tet grew four times compared to the month prior to the lunar new year holiday. Jobstreet.com Vietnam conducted a survey on 350 employers, of which 75 per cent said that the first and second quarters always see major movements by staff.

Sixty-eight per cent said the post-Tet period is the peak time in their recruitment needs. Recruitment behavior in Vietnam also showed similarities with Malaysia and Singapore, which also celebrate the lunar new year. According to JobStreet.com, in Malaysia and Singapore about 73 per cent and 80 per cent of employers, respectively, said the first half of the year always sees personnel coming and going.

There are major differences in recruitment between jobs. Sales, Marketing, and ICT are the three with the highest recruitment demand, accounting for 40 per cent of the total. About 29.5 per cent of job vacancies posted on Jobstreet.com website were related to Sales and Marketing positions.

General Director of JobStreet.com Vietnam, Ms. Angie SW Phang, said that the role of Sales and Marketing positions is very important to the success or failure of a company, so they must adopt the correct strategy to attract and retain the best salespeople.

The trend in the first and second quarters has already been predicted, as a previous survey on 2,000 candidates at the end of December revealed that 68 per cent plan to change jobs within the next 12 months to earn better salary and benefits.

“Employers need to be more proactive in developing talent ‘banks’ to prepare for positions with high turnover,” Ms. Phang said. “Wage funds should be also adjusted to suit the recruitment plan and enterprises need to pay more attention to building the company’s brand, becoming a company where everyone wants to work.”

JobStreet.com also said that Vietnam ranked fourth out of five countries - Malaysia, Singapore, the Philippines, Indonesia and Vietnam - in English skills. A survey on fresh graduates showed that only 5 per cent are confident about their English skills while 27 per cent acknowledge having a weakness in language skills overall. Despite the advantage of understanding the local market, low labor productivity and a lack of language skills is a problem for Vietnamese workers competing with those from elsewhere in Southeast Asia.

Casa Marina Island Resort gets green light

In order to promote the development of marine tourism in Quy Nhon, the Binh Dinh Provincial People’s Committee recently approved a project of the Truong Thanh Vietnam Development Investment Company to research and invest in the Casa Marina Island Resort on Hon Dat Island and Hon Ngang Island.

Covering an area of 41.3 ha, the Casa Marina Island Resort has total investment of VND200 billion ($8.9 million) and construction is expected to be completed by August 2018.

The resort includes a complex of restaurants, bungalows, tourist ports, sports services, aquaculture, and marine life conservation areas. Upon completion it will be an attractive tourist destination for local and foreign tourists coming to south-central Binh Dinh province.

The Provincial People’s Committee asked the investor to prepare an infrastructure investment plan for electricity and water networks, cooperate with local people in raising aquaculture for the project, and fully implement procedures on land, construction, investment, environmental protection, and other related issues in accordance with existing regulations.

Nation’s CPI up 0.42% in February

Vietnam’s consumer price index (CPI) in February, which coincided with the recent Lunar New Year holiday (Tet) during which consumption was extremely strong, has picked up 0.42% against last month.

According to the General Statistics Office, sharp price increases were reported in many groups of items with high demand in the longest holiday in the country, including food-catering services and beverage-tobacco.

In particular, the group of food and catering services has inched up 1.98% in price against January, with food up 2.45%, dining-out services up 1.45% and foodstuff up 0.66%. Meanwhile, the rise of the beverage-tobacco group is 1.15%.

Price hikes have been reported for six other groups, but with slight increases (below 1%). For instance, the group of other goods and services has risen by 0.8%, the culture-entertainment-tourism by 0.71% and the home appliances group by 0.19%.

Overall, February’s CPI rise is only 0.42% as there are three groups whose prices are down, including the transport group with a drop of 3.96% after several fuel price cuts.

Meanwhile, the groups of housing-electricity-water-gas and post-telecom have registered respective declines of 0.41% and 0.16%.

Compared to February 2015, this month’s CPI has gone up 1.27%. The CPI has increased 1.03% in the year to date compared to the year’s first two months of last year.

In terms of region, the CPI in cities is higher than in rural areas.

This month, several provinces and cities have seen the CPI rising higher than the country’s average such as Gia Lai (1.61%), Danang (1.07%), Haiphong (0.84%) and Hanoi (0.47%). Meanwhile, the increases are quite low in some localities like HCMC (0.05%), Vinh Long (0.06%) and Can Tho (0.26%).