Ca Mau gas processing plant to start commercial production in June

A gas processing plant in U Minh district of the southernmost province of Ca Mau, designed with a capacity of 6.2 million cubic metres per day, will finish trial operations and begin commercial production in June 2017.

According to deputy head of the management board of the factory Nguyen Tien Hai, the project has completed 99 percent of the workload, and ran for 2.5 million hours without any incidents on a pilot basis.

The project, worth 300 million USD was invested by the PetroVietnam Gas Joint Stock Corporation (PV Gas), aims to process natural gas from blocks PM3 and 46-CN to create high value products, including liquefied petroleum gas (LPG) and natural gas condensate, he added.

With the application of the latest technologies to treat wastewater without using chemicals to rinse pipes, the project ensures environmental protection.

Once put into operation in June, the gas processing plant will be able to produce 600 tonnes of LPG and 34 tonnes of condensate per day.

Vietlott’s distribution system through mobiles to be launched

The Vietnam Lottery Company (Vietlott) will roll out its distribution system through mobiles by the end of this year, according to Vietlott Deputy General Director Nguyen Thanh Dam.

He made the statement at a press conference on April 21 to announce the company’s business results in 2016 and the first quarter of this year.

Vietlott will roll out its third product in July, after the computerised lottery Mega 6/45 and game Max 4D. The company will branch out its business activities in more than 20 provinces nationwide in the coming time.

Vietlott’s sale revenue in the first three months of this year reached over 1 trillion VND (44 million USD).

Statistics showed that the company has so far presented over 2.45 million winning ticketholders with prizes worth nearly 602 billion VND (26.5 million USD). Some 13 jackpot prizes valued at 425 billion VND (18.7 million USD) were awarded to the winners in Quarter I.

Last year, ticket sales in Vietlott’s 12 markets stood at nearly 1.6 trillion VND (70.4 million USD), accounting for 2.1 percent of the national lottery revenue.

Vietlott’s first tickets were sold in Ho Chi Minh City then expanded to others provinces and cities, including Can Tho, An Giang, Binh Duong, Dong Nai, Ba Ria-Vung Tau, Khanh Hoa, Dak Lak, Ha Noi, Hai Phong and Quang Ninh.

HDBank to raise chartered capital to $389 million 

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) will increase chartered capital to almost 8.83 trillion VND (389 million USD) by issuing 56.7 million shares.

Of the sum, 292 billion VND (12.8 million USD) will be earmarked for building its headquarters and expanding operations and 437 billion VND (19.2 million USD) will be used for medium- and long-term loans.    

These targets are parts of a plan approved at the bank’s annual stakeholders meeting held in Ho Chi Minh City on April 21.

HDBank general director Nguyen Huu Dang said the bank has expected to post 1.3 trillion VND (57.2 million USD) pre-tax profits, a rise of 13 percent, and keep its bad debt rate below 3 percent.

HDBank plans to increase the number of transaction offices to 240 from the current 221 by the end of the second quarter.

Between 2017 and 2021, HDBank will work to achieve an average annual ownership capital growth of 15 percent. By the end of 2021, it plans to raise chartered capital to 15 trillion VND (660 million USD) and pre-tax profits to 2.5 trillion VND (110 million USD). 

In 2016, HDBank’s pre-tax profits and credit outstanding balance exceeded 1.1 trillion VND (48.4 million USD) and 90.1 trillion VND (3.96 billion USD), respectively.

Novaland’s capitalisation value rises to almost 2 billion USD

Property developer Novaland Group now has a capitalisation value of nearly 2 billion USD, making it one of the 10 biggest listed firms on the Ho Chi Minh Stock Exchange in terms of market capitalisation.

According to the group’s financial report released on April 21, Novaland earned over 1.9 trillion VND (84 million USD) in net revenues in the first quarter of 2017, up 164 percent from the same period last year, bringing its total asset value to over 37.7 trillion VND (1.66 billion USD). Its net revenues are expected to hit 17.5 trillion VND (772 million USD) in 2017. 

Novaland plans to ramp up mergers and acquisitions (M&A) activities this year in strategic projects in Ho Chi Minh City, Can Tho, Da Nang and Ba Ria - Vung Tau.

The group has been developing 40 projects of different kinds such as villas, shop-houses, residential apartments and commercial buildings. Nine of them have been  completed while ten others will be finished this year.

Eximbank to divest capital from Sacombank

The Vietnam Export Import Commercial Joint Stock Bank (Eximbank) will sell its 165 million shares at the Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) in a proper time.

Eximbank General Director Le Van Quyet affirmed this during the bank’s annual general meeting in 2017 held in Ho Chi Minh City on April 21.

The bank has pushed up divestment process as requested by the State Bank of Vietnam, Quyet said, highlighting that the bank will seek a suitable partner to offload its Sacombank shares.

According to Eximbank’s executive board, the bank earned a profit of 168 billion VND (7.4 million USD) in the first three months of this year and saw no credit growth in the period. 

The bank sets a target of having total asset of 150 trillion VND (6.6 billion USD) in 2017, a year-on-year surge of 16 percent, and pre-tax profit of 600 billion VND (26.4 million USD). Credit activities are expected to grow 14 percent, with outstanding loans of nearly 108.9 trillion VND (USD).

Aviva acquires entire shareholding in Vietnam JV

The multinational insurance company Aviva Plc has announced the acquisition of VietinBank’s entire 50 per cent shareholding in its life insurance joint venture VietinBank Aviva Life Insurance Limited (Aviva Vietnam) and signing of a new distribution agreement with VietinBank to sell life and health insurance products through the bank’s network of over 1,100 branches and transaction offices, the second-largest in the market.

As a result of the transaction, Aviva Vietnam is now a wholly owned subsidiary of Aviva with a key focus on growing the business across all key distribution channels. This move also simplifies Aviva’s operating structure in the region. The transaction is subject to customary closing conditions including regulatory approvals.

Chris Wei, Chairman Aviva Asia and global chairman of Aviva Digital said that “With Aviva’s insurance and digital expertise and a strong partnership with a leading bank, we are optimistic about our growth prospects in Vietnam. We have developed a deep and successful relationship with VietinBank and will continue to build on our strong foundations.”

While on the announcement, Randy Lianggara, regional CEO for China, Indonesia and Vietnam said: “We are thankful to VietinBank for the excellent support it has offered us, and the high-quality partnership we have built together.”

He added: “We will continue to meet the changing needs of the Vietnamese people by introducing relevant products that are targeted to their unique life stages. We will also expand our distribution and digital capabilities and enhance the service quality we provide to our customers.”

Aviva Vietnam was founded in 2011 and has since built a strong presence in the market, becoming a Top-ten life insurer by premium. Vietnam is an attractive insurance market with double digit life premium growth in the past three years and one of the world’s lowest life insurance penetration levels, at less than 1 per cent of GDP. The insurance industry is expected to benefit from the country’s projected GDP growth of more than 6 per cent annually over the next three years.

Agricultural restructuring focuses on improving product quality

Vietnam's agricultural sector has been restructured in recent years to ensure growth.

Top priority has been given to creating link chains and increasing product value in addition to dealing with challenges caused by climate change and fierce competition in the international market.  

Vietnam’s growth in agriculture, forestry, and aquaculture has declined in recent years due to changes in the world market and climate change. Growth fell from 4% in 2014 to 2.6% in 2015 and 1.3% in 2016.

The Prime Minister has approved a project to restructure the agriculture sector to increase added value and sustainable development so as to boost exports and competitiveness in the global market.

Le Van Binh, Deputy Director of the National Assembly Office’s Economic Department, said the project is very important given the current situation.

“Vietnamese agriculture will find it harder to achieve the same growth as in previous years but the sector can grow in quality. To produce qualified agricultural products, we should invest much more in science and technology, breeds, cultivation methods, and link chains,” said Binh.

The most important things the agricultural sector can do now is define the market, improve processing technology, and remove hurdles related to policies on land and preferential credit for investment attraction.

Nguyen Xuan Duong, Deputy Director of the Husbandry Department of the Ministry of Agriculture and Rural Development, said a series of bilateral and multilateral trade agreements have taken effect, forcing farmers to face stiff competition from foreign products and challenging the rise in value of farm produce and the sector’s overall growth.

“It’s more important to invest in processing than to expand production. This means we are moving to selling processed products in order to increase product value and command higher prices,” according to Duong.

Nguyen Do Anh Tuan, Director of the Institute of Policy and Strategy for Agriculture and Rural Development, said that in order to create a breakthrough, the sector should focus on innovative ways of thinking to improve the quality and value of farm produce.

Tuan particularly insisted on the importance of programs that promote agricultural high-tech and cooperation in vocational training between businesses and farmers. 

He said, “We need to review policies and mechanisms related to restructuring agricultural land, and investment attraction to better address actual needs. More investment should be made in science and technology while getting more businesses involved in the public-private partnership model.”

Vietnamese firms need improvement in corporate governance - VCCI

Increasingly more domestic companies have been entering the Vietnamese market over the past decade, but they need to improve management capacity in order to raise competitiveness and better respond to business environment changes, the Vietnam Chamber of Commerce and Industry (VCCI) said.

More than 800,000 companies registered in Vietnam in the 2007-2016 period, bringing the total number to over 1 million enterprises. Last year alone, the number of newly registered firms rose beyond 100,000 for the first time, according to the Vietnam Business Annual Report 2016/17 compiled by VCCI and the State Securities Commission and released recently. 

“The number of newly established enterprises has increased sharply in the past two years, breaking the upward trend in the 2011-2014 period,” said Pham Thi Thu Hang, VCCI’s general secretary.

But the annual report, focusing on corporate governance, suggested more is needed to be done to improve business performance.

"Many business leaders still considered corporate governance a puzzle," said VCCI Vice President Doan Duy Khuong.

Improper management practices and a lack of effective corporate governance are hindering Vietnamese firms’ competitiveness, making them "slow" to respond to changes in business environment, Khuong added. Improving corporate governance is a must for Vietnamese enterprises to bridge the gap and catch up with other countries in the region.

Officials have recommended several administrative tools for improvement, including following developed countries' model for board of directors, applying international accounting standards and enhancing the role of business associations.

The government should offer solutions on corporate governance to support small and medium-sized enterprises and help them improve competitiveness, VCCI's Hang added.

Singapore investors get acquainted with Luxury Apartment Danang

As one of the few luxury seaside projects in Vietnam heading to the emerging markets property exhibition in Singapore on April 22 and 23, Luxury Apartment Danang speaks to new investors on the Lion Island.

Singaporean investors note that the high-end real estate market in Vietnam has outstanding advantages in terms of development potential, as well as attractive prices compared to neighbouring countries. The seaside real estate segment possesses many of the resort features and high profitability that investors look for in emerging markets. 

“We have been contacted by many investors interested in Luxury Apartment Danang since we opened and they all tend to ask the same questions. Through this exhibition, we want to clear some of these questions up and create more opportunities to bring the benefits of our project to international investors. Singaporean investors are well-versed in emerging markets and they are on the lookout for the next property hotspot,” commented Jacobus Hemels, Alphanam Real Estate representative.

Singaporeans are seeking new opportunities to diversify their investment portfolio, often after having invested in previous emerging markets like Thailand or Bali. After the law of housing and real estate was changed for foreigners in Vietnam in July 2015, real estate ownership for foreigners has become much more transparent.

Leong Boon Hoe, CEO of CBRE Singapore, stated that owning property in Vietnam is a new trend in the city-state. In the ASEAN region, Vietnam is one of the more active countries in attracting foreign investment into the property market.

“The decision to invest in Alphanam’s Luxury Apartment is the best property investment I have made in Vietnam. The five-star project creates a luxury lifestyle for residents while providing high rental income for investors. The combination of architecture, stylish interior, and its strategic location allows for a higher capital gain from the investment too,” said Qitai Ooi, a Malaysian investor who attended the exhibition.

Troy Griffiths, deputy general director of Savills Vietnam, noted that the domestic serviced apartments sector has seen an 83 per cent average occupancy rate in 2016. With this number, Alphanam (the developer) offers a contract which commits a 45 per cent return on investment in five years to investors. From the sixth year, upon signing a second contract, investors receive 85 per cent of net rental profits.

Currently, Alphanam is offering an attractive discount policy up to 7.5 per cent on the total value of each unit. With immediate and guaranteed returns payable twice a year in July and December, Luxury Apartment is now among the best-selling high-end resort apartment projects in Danang.

Derek Seth Goldberg, one of the Singaporean clients of the project, said “This is my first property investment in Vietnam. The fact that this project is owned by Alphanam gives me a stronger belief in its quality as well as the legality of the promised rate of return on investment.”

Luxury Apartment is currently the only high-end apartment project on My Khe Beach, with the first apartments for residents being handed over at end of the second quarter of 2017. Its premium location allows for residents to easily travel to the city centre, the international airport as well as famous tourist attractions.

Along with having its own amenities for apartment guests, the project shares the building with high-end hotel Four Points by Sheraton, providing guests access not only to a rooftop pool, gym, and all-day-dining restaurant on the apartment side, but 5-star housekeeping, dry-cleaning/laundry, and in-room services, such as in-room dining. The apartment side is separated from the hotel for total privacy, including the lobby, yet it shares the luxury perks of a five-star hotel.

With the advantages of being designed and constructed in conjunction with an international hotel, Luxury Apartment is a quality investment product that were introduced by Alphanam at the Emerging Markets Property Show in Singapore on April 22 and 23. Luxury Apartment wishes to bring the opportunities of Vietnam’s high-end real estate products to more international investors and aims to make the investment process simpler and more transparent.

Haiphong investment seminar enchants Singaporean enterprises

An ASEAN market seminar “Capturing business opportunities in Vietnam’s third largest city: Haiphong” has taken in Singapore recently, attracting more than 80 participants, mostly Singaporean businesses coming from diverse industries.

The seminar was held by the Singapore Business Federation in tandem with the Vietnamese Ministry of Planning and Investment’s Vietnam Investment Promotion Centre, Deep C/Dinh Vu Industrial Zone, which is based in Vietnam’s northern port city Haiphong, consultancy firm Deloitte, and Vietcombank, a leading bank in Vietnam.   

The seminar featured a presentation by Tran Thi Hue, a representative from the Vietnam Investment Promotion Centre (IPC), providing an insight into Vietnam’s economic situation and the potentials and business opportunities the country offers to investors. 

Vietnam’s membership in a variety of international organisations, such as  the World Trade Organization (WTO), the ASEAN, and the Vietnam-EU Free Trade Agreement (FTA), has made and will make trade between Vietnam and its key consumer markets more efficient.

The trade and business links between Singapore and Vietnam have grown significantly over the years, with Singapore becoming Vietnam’s second largest investor after Korea as of the end of 2016, Hue said.

Active economic integration together with strategic location, improved infrastructure, and business environment reforms have enabled Vietnam to establish itself as a topmost destination for foreign direct investment.

As the Vietnamese government’s investment promotion centre, IPC has committed to provide strong support to Singaporean investors during their survey process as well as in doing business in Vietnam.

Frank Wouters, general director of Dinh Vu Industrial Zone JSC, the central focus of the seminar, highlighted the efforts of the Vietnamese government and Haiphong city authorities to improve the existing and developing new key transportation infrastructure units, including a deep seaport, an international airport, and a road network heading north to China, south to other coastal provinces, and to Hanoi.

The combination of the deep seaport-expressway-airport-industrial zone cluster helps unlock the potential of a market brimming with opportunities and a skilled labour pool of 20 million northern Vietnamese people.

Haiphong’s excellent connection to key transport infrastructure affirms its premium location for investment. Looking at its geographical situation, the city is located at the very heart of the northern transportation hub: it lies adjacent to the deepest port in north Vietnam, which is accessible by fully-loaded 100,000DWT vessels, and is conveniently close to Cat Bi International Airport that offers both international and domestic connections. In addition, the city is only an hour drive by truck from Hanoi.

Located at the centre of these key infrastructure units, the Deep C cluster provides huge benefits to investors, leveraging its golden location, state-of-the art power and water utilities, and a wide range of associated services.

Participants at the seminar also gained a deeper insight into the practical banking and financing considerations for foreign businesses in Vietnam from the detailed presentations by Vietcombank and Deloitte.

The seminar has provided Singaporean businesses with a deeper understanding of the strengths and potentials of Vietnam in general and Haiphong city in particular, laying the groundwork for this prominent destination to come up more often in Singaporean investment strategies in the future.

Managing information in line with Vietnamese law and international practice

The explosion of social media has enabled people to access and share information much faster. But the rapid development of information technology also poses grave challenges to information managers.

Fake news websites under the names of Vietnamese leaders and distorted information on the internet have become more common in Vietnam in recent years. This disinformation, mostly originating from foreign social networks, is problematic.

The development of social media is irreversible. There are 45 million Facebook users in Vietnam, one of the biggest Facebook totals in the world. Vietnam is also one of the ten countries with the most YouTube users. It’s difficult to control harmful information on social media it is often beyond the jurisdiction of Vietnamese law. 

In 2016, the Ministry of Information and Communications issued a circular detailing cross-border distribution of public information. The circular requires that foreign entities providing public information to users in Vietnam observe Vietnamese regulations and laws and cooperate with Vietnamese authorities in addressing violations. It also requires streaming media to provide timely and accurate information, because information transparency is the most important means of countering disinformation.

The Ministry of Information and Communications has demanded that Google and Facebook observe Vietnamese law and remove more than 1,300 harmful videos.

It asked Google to establish a mechanism to remove or block illegal information on other platforms that use Google systems and will ask Facebook to remove fake accounts using the names of Vietnamese leaders. Domestic businesses are encouraged to start social networks that can compete with or replace Facebook.   

Sophisticated cyberattacks have been increasing in both scope and frequency, damaging countries around the world. A survey in 2016 revealed that 73% of Vietnamese agencies and organizations ignore cybersecurity and safety measures.    

The Ministry of Information and Communications has submitted to the Prime Minister a decision on national information safety development planning and a decision on human resource development in this domain until 2020. It has developed a system to handle cyberattacks, a national cyber safety technical center, and guidelines for Ministries and local administrations.    

CapitaLand partners with internationally Acclaimed Feng Shui consultant Dato’ Joey Yap

CapitaLand Vietnam co-organised a “Feng Shui and Astrology 2017” seminar by the world’s leading authority on Feng Shui and Chinese metaphysics, internationally acclaimed Feng Shui Consultant, Dato’ Joey Yap, in Ho Chi Minh City and Hanoi.

CapitaLand Vietnam recognises the role that Feng Shui plays when customers purchase residential projects. Feng Shui on a scientific and metaphysical science level is an astronomical study of how the planetary bodies in our solar system affect our planet. In essence, Feng Shui is a study of how these planetary bodies impact earth, and as these positions change annually or over time, their impact also changes. 

This will be the second time that CapitaLand Vietnam has organised such a seminar for homebuyers.  As CapitaLand Vietnam sets its customers as priority, the company continues to look after its homebuyers with a special team called the Customers Relations team.

This seminar is one of CapitaLand Vietnam’s activities to show its care and appreciation for its customers. Last year, the “Feng Shui and Astrology 2016” seminar by the same internationally acclaimed Feng Shui Consultant, Dato’ Joey Yap, was highly appreciated by the Vietnamese audience. Dato’ Joey Yap was also the Feng Shui consultant for Feliz en Vista and D1MENSION, CapitaLand Vietnam’s high-end residential projects in Ho Chi Minh City.  

“Feng Shui and architecture are intertwined with shared basic principles. When an architect designs a building, they are conscious of the environment. Similarly, Feng Shui also emphasises harmony with nature and the environment by going with the flow of Qi. Some principles in Feng Shui are also common architectural principles. For example, having a sharp or solid structure too close to the main door would block the Qi,” Chen Lian Pang, CEO of CapitaLand Vietnam, shared. “In architecture terms, this would also be done to create a comfortable space after the main door. We hope to spread knowledge to the Vietnamese market on the practical benefits of Feng Shui in residential projects, and change the mindset that they are only relevant in other places such as Singapore or China.” 

Dato’ Joey Yap is an internationally acclaimed and bestselling author with more than 160 books published. His literary work has been translated and published in every continent of the world, making it to local bestsellers list on numerous occasions and having sold more than four million copies worldwide. Some of his bestsellers have also earned The Merit Award from The Asean Book Publisher Association. He is also a passionate and internationally renowned speaker who is highly sought after in business communities and corporate events. His talks have an appeal that transcends barriers of age, culture and occupation.

During the “Feng Shui and Astrology 2017” seminar, Dato’ Joey Yap will illuminate on five key aspects. Firstly, how to gain competitive edge with industry sights, trends and patterns. Secondly, how to acquire decision-making tools that will help you soar higher in your endeavours, be it in career, business or investment. Thirdly, how to transform your life and navigate health as well as relationship problems with finesse. Fourth, how to create your own personal path to success by tapping into his systems and strategies. Finally, how to unlock the secret to Chinese metaphysics and see how it works, and what it can do for your life.

ABB drives Vietnam power’s digital era

Vietnam has a large established base of power generation and transmission infrastructure. This infrastructure has been installed over many decades and sourced from multiple locations worldwide.

Vietnam now has one of the highest growth rates in the region and in the world. This growth can be attributed to the rising population and the expanding economy.

In order to continue to develop at a sustainable pace, a reliable power supply is needed. The existing power infrastructure cannot easily be replaced. As with any equipment, if it is maintained in a structured way it can perform reliably and last for a long time.

Vietnam has started to upgrade its national grid to meet the requirements of the “smart revolution”. Many substations have had new measurement technologies installed to help with remote monitoring and control. City electrification and mass transportation have led to the increase in electrical power demand, emphasising the need for digitalisation within the national grid.

Vietnam’s energy requirements are driven by the need for a reliable supply to reduce dependence on imported fuels and enable developing rural areas to access affordable electricity.

By cutting response time, supervisors are able to make crucial decisions faster Vietnam’s progress towards digitalisation in distribution has already begun:

Phase 1: Completed

- Pilot projects for automatic metering and renewable energy sources are underway.

- Hanoi and Ho Chi Minh City monitoring systems have been upgraded and are ready for “smart grid” operation.

- More than 95 per cent of all substations 110 kilovolts or bigger are automated, ready for smart grid operations.

Phase 2: To 2022

- The country should extend the automatic metering system.

- Commission pilot projects for “smart homes” and “smart cities”.

- Develop technical standards for energy storage and smart appliances.

Phase 3: 2022 onwards

- The progress in expanding information, communication, and technology infrastructure should continue.

- Smart grid applications should be implemented, which will balance supply and demand at the consumer level.

- Use renewable energy in the distribution grid with time-of-use pricing rates.

Sustainability in the power sector 

Power sustainability is built on five pillars:

- Efficiency is the key to a sustainable energy future.

- Smart transmission and distribution grids are necessary to support efficiency and renewable energy.

- Integration of renewables and reliability improvements are increasingly important.

- Managing and optimising two-way power flow and information is vital.

- Technology in the form of digitalisation will remain a key factor in addressing market opportunities.

Where ABB Ability comes in

ABB Ability is a unified, cross-industrial digital capability – extending from devices to the cloud – with devices, systems, solutions, services, and a platform that enables customers to access more information and use it to enhance their efficiency. ABB Ability connects customers to the power of the Industrial Internet of Things, and through their services and expertise, they can go further by turning data insights into direct actions that “close the loop” and generate tangible value in the physical world.

ABB tailored digital solutions

Ageing infrastructure, new regulations, distributed energy resources, and the convergence of information technology and operations technology are just a few of the issues that are dramatically changing the utility landscape today.

ABB Ability provides tailored digital solutions and products for the differing needs of utility providers, from power generation to transmission and distribution. Be it advanced diagnostics that prevent unplanned downtime or the complete control of individual coal-fired boilers, ABB Ability grants utility providers an in-depth understanding of their processes and gives them unparalleled control.

Virtual power plants

ABB Ability provides central control and complete optimisation for more than 2,800 distributed units within one of the world’s largest virtually-controlled power plants.

Reliability is a core deliverable for the power industry, which is challenged by the variability of renewable supply, the unpredictability of consumer demand, and, as anyone in Vietnam’s central provinces will tell you, the capricious volatility of Mother Nature. Better modelling – and modelling that improves over time – can have implications not only for service uptime, but also for cost management.

ABB Ability solutions handle real-time processing of large signal and data sets. It manages and controls equipment to insure optimal functionality, regardless of the external scenario.

ABB’s system for utilities lowers the costs for produced energy and optimises internal production. It also improves nominated load schedule fulfilment by enabling utility providers to get power where it is needed, when it is needed.

Power plant boilers

ABB Ability can reduce boiler startup costs by 15 per cent, improve efficiency, and decrease NOx emissions by 5-15 per cent through remote services.

The cost of equipment failure is not measured by downtime alone. The negative monetary effects of faulty equipment are exacerbated by the time and cost of getting the equipment functioning again – as well as the impact of the failure on all processes and outputs both up and down the internal value chain. The figures get particularly expensive when core equipment is involved, so maintaining the performance integrity of the entire system is paramount.

ABB Ability solutions for utilities can remotely monitor a plant and activate a notification mechanism should the performance of a unit falter. This will prompt investigation, analysis, and a subsequent service recommendation. If necessary and available, standby units or other workarounds to maintain the performance integrity of the system will be initiated.

Power plant automation

ABB Ability can help to optimise processes, reduce risk, and increase operator efficiency and plant availability by reducing abnormal events by 40 per cent.

At least 40 per cent of the world’s cyber-attacks target the energy sector, and up to 40 per cent of abnormal events within a given plant are due to operator actions or errors. Maintaining the integrity of the system is therefore an emergent issue that cannot be ignored.

The ABB Ability solution leads to improvements in reliability, availability, forced outage rates, and human resource allocation. Risks are reduced by increasing cyber security, while alarm management results in greater operator efficiency and accident avoidance. Improved control loop performance leads to higher plant availability and efficiency.

Connected equipment lifecycle management

The right work, on the right equipment, at the right time, using the right resources can increase a piece of equipment’s lifespan by three years, save up to 15 per cent in operation and maintenance costs, and reduce overtime costs.

More than ever, utility companies are being challenged to maintain high equipment availability, reliable capacity, and ubiquitous safety, all the while dealing with financial pressures caused by ageing infrastructure and the limited capital available for maintenance and replacements.

ABB Ability Connected Equipment Lifecycle Management ensures that the right work is being done on the right equipment at the right time – driving down maintenance costs, reducing unplanned equipment failures and system outages, and increasing performance, availability, and reliability.

Digital substations

ABB is bringing the Industrial Internet of Things to electrical substations and cutting downtime by up to 50 per cent.

Conventional electrical substations typically use miles of copper cabling for point-to-point connections. Copper is expensive, has limited signalling capacity, and, in the environment of a substation, introduces potential safety risks to workers and equipment.

This outdated method of signalling results in expensive testing and maintenance, leaving critical information stranded until periodic checks are made on location. If supervisors were able to leverage the data in real time, it would be a huge opportunity to improve grid integrity and reduce power interruptions.

By replacing copper wires with fibre-optic connectivity, ABB is able to lay the foundation for automated, high-performance digital substations. Through ABB’s fibre-optic network, they can collect and analyse data using cloud-based software to arrive at solutions that optimise power-grid equipment health.

Angel investors come together to support startups

Nine angel investors have signed a commitment to build the iAngel Network to provide capital and consultancy for startups.

The nine are the Vietnam Startup Fund (under the Ministry of Science and Technology), the Innovation Hub JSC, the National Private Fund Investment and Startup JSC, the Vietnam Management Consulting JSC, the Angels 4 Us Company, SongHan Incubator, the Hanoi Technology Development Investment JSC, the Capella Vietnam JSC, and the Hanoi Young Entrepreneurs Association.    

The organizations committed to building the iAngel Network, which will become the first choice of young startup entrepreneurs when needing financial and non-financial assistance.

“The most difficult thing for startups is capital, and administrative policies for angel investors in Vietnam remain limited, so we will build the iAngel Network to support startup projects,” said Mr. Ly Dinh Quan, Director of SongHan Incubator.

Mr. Tran Anh Vuong, President of the Hanoi Young Entrepreneurs Association, said that investors are committed to building the iAngel Network based on needs in the startup community, not on profit. “This network will be active in both quantity and quality for startups,” he said.  

iAngel invested in some startups last year but Mr. Nguyen Tien Trung, Director of the National Private Fund Investment and Startup JSC, sees this as only the beginning. “We will try to promote iAngel to become a reliable support tool for startups,” he added. “Other angel investors have similar targets.”

Vietjet's Q1 results exceed targets

Vietjet Air has released its business results for the first quarter of 2017.

Aviation transport revenue stood at VND5.095 trillion ($224.2 million), an increase of 44.2 per cent year-on-year and 10.6 per cent higher than the target. Revenue from international routes rose sharply, and profit increased 6.8 per cent year-on-year.

Pre-tax profit and after-tax profit were VND432.64 billion ($19 million) and VND381.65 billion ($16.8 million), respectively.

It operated 22,353 safe flights in the quarter, with technical reliability at 99.59 per cent, a slight increase of 0.02 per cent year-on-year. Flight operations, ground operations, and engineering safety indicators were among the highest in the Asia-Pacific region. The airline carried 3.7 million passengers, an increase of 29.4 per cent year-on-year.

Operational costs (excluding fuel) fell 4.1 per cent, from 2.44 cents to 2.34 cents per available seat kilometer (ASK). “The company’s operational costs are close to the world’s top airlines,” said Mr. Luu Duc Khanh, Vietjet’s Managing Director.

It launched three new international routes in the quarter, raising its total to 63, with a high load factor of 88 per cent and an on-time performance (OTP) of 87.7 per cent, an increase of 4.1 per year-on-year.

The first quarter saw strong growth in total assets, to VND21.727 trillion ($956.4 million), an increase of 17.37 per cent, in which cash and cash equivalents rose sharply, to VND2.777 trillion ($122.2 million).

Vietjet plans to operate the A320/A321 neo family of aircraft this year, which will result in fuel savings of 15 per cent. No new aircraft were received in the first quarter, but from the second quarter it will take delivery of new aircraft, so there will be no revenue and income from sales and lease backs, as reflected in its consolidated financial statements.

The budget carrier announced its plans for sustainable growth in the 2017-2022 period at its annual general meeting in Ho Chi Minh City on April 20. It will develop a sustainable development program, invest in enhancing its human resources, protect the environment, meet its corporate social responsibilities, work within the national tourism development strategy, promote local economic development, popularize cultural practices, and boost aviation in the country.

Sabeco seeks to sell State stake soon

The board of Sabeco, the country’s leading brewery, has asked the Ministry of Trade and Industry to sell the State stake at Sabeco soon to turn the enterprise into a public company.

The stake will be put up for auction on the local stock exchange, Sabeco said. A consultant will be chosen to draw up a divestment plan, said Sabeco chairman Vo Thanh Ha at the corporation’s annual general meeting on April 18.

In response to a question on the divestment roadmap, Le Hong Xanh, a member of the board, said the Ministry of Industry and Trade had sent a divestment plan to the Government. Meanwhile, chairman Ha said he had just received a dispatch on capital divestment from the ministry

Sabeco has been listed on the Hochiminh Stock Exchange. However, the ministry still held an 89.59% stake in the brewery by late last year.

Sabeco’s total beer sales amounted to 1.65 billion liters last year, 6.9% higher than the full-year forecast and 8.3% more than the previous year.

Sabeco reported total consolidated revenue of over VND31.75 trillion, 11% higher than estimated, and up 13% against 2015. Its after-tax profit reached some VND4.7 trillion, growing 33% over 2015 and beating the full-year target by  28%. The dividend was 30%.

Vietnam wood products need design innovation

Vietnamese wood processing enterprises should invest more in design so that they can turn out innovative items that can compete globally, instead of focusing merely on price cutting.

This issue was raised at a forum on sustainable development of the wood processing industry held by Forest Trends and furniture and handicraft associations last week in HCMC.

The forum looked into ways to develop a sustainable wood processing industry at a time when Vietnam has closed its natural forests and material mainly comes from replanted forests and foreign countries.

Experts said domestic wood processors rely heavily on cost reductions as a competitive advantage. However, this pricing strategy has eroded the competitiveness of Vietnam’s wood processing and export industry in recent years.

Experts said low costs, especially of labor and material, could not help improve competitiveness. In China and Taiwan, despite high labor and material costs, their wooden products are always competitive. Meanwhile, the competitiveness of Vietnamese enterprises is in decline despite their lower prices.

Wood processors in China and Taiwan concentrate on product design and innovation. Over the years, Vietnamese peers have run short of human resources for product design, which has resulted in poorly-designed products of low value.

If there is no innovation, the Vietnamese wood processing industry’s global market share would shrink further.

According to the Vietnam Timber and Forest Products Association (VIFORES), Vietnam’s wooden items are exported to 120 countries and territories, including the U.S., Japan, China and EU nations, with an annual export value of US$6-7 billion. Vietnam’s major wooden products for export are furniture, beds and cabinets.

VND3.6 trillion needed to develop water reservoirs in HCMC

Saigon Water Corporation (Sawaco) has plans to construct reservoirs and renovate water towers with a total investment of around VND3.6 trillion (US$158.5 billion) to ensure sufficient water supply for residents in case of natural disasters.

The first large reservoir is expected to be built at Go Vap Cultural Park in a pilot scheme. Besides, Sawaco will draw up an overall plan for developing a network of water reservoirs citywide, securing funding, choosing construction sites, and calling for investment.

The total volume of the city’s underground reservoirs is estimated at around 720,000 cubic meters, equivalent to 43% of the city’s consumption in 2016. Therefore, these facilities are technically capable of providing water for city dwellers in nine hours in the event of an unexpected incident, according to Sawaco.

The capacity of fresh water tanks is expected to increase to some 1.2 million cubic meters, 48% of the total consumption by 2025.

Sawaco said the construction of these extra reservoirs would ensure sufficient water supply in the years to come given climate change.

Around VND2.7 trillion is needed to develop five large reservoirs in districts of Go Vap and Binh Chanh, as well as the city’s central, western and southwestern areas. Meanwhile, the renovation of water towers, and the construction of small water tanks would require some VND870 billion.

Help sought for pig farmers

The Ministry of Agriculture and Rural Development (MARD) has asked the Prime Minister for assistance for pig farmers who have suffered hefty losses sparked by falling pig prices.

Prices of live pigs have fallen to the lowest level since early this year and half the levels of the same period last year.

Nguyen Tri Cong, chairman of the Dong Nai Livestock Association, said live pig prices range from VND25,000 to VND27,000 per kilo (US$1.1-1.2), way below VND50,000-55,000 (US$2.2-2.4) in April 2016.

Although prices of live pigs at farms have declined sharply over the past few months, pork prices have fallen slightly. According to the Dong Nai Livestock Association, pork has marked down only 10% year-on-year, benefiting slaughterhouses and distributors.

“Many livestock farmers may go out of business and those effectively managing production costs can survive,” said Cong.

MARD has adopted immediate and long-term solutions to ensure sustainable development for the domestic livestock sector. MARD suggested the Government tell banks to freeze loans for some livestock farmers and animal feed traders.

MARD proposed the Government request large meat distributors such as Vissan, Hapro Hanoi and Saigon Co.op to stock up on pork for distribution in the coming months. Besides, Vietnam should suspend pork imports from foreign countries.

According to the General Statistics Office, the number of pigs raised in Vietnam has increased by 1.5-2% over the same period of 2016.

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