Sacombank’s NPL ratio declines sharply to 4.4 percent

Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has successfully reduced its non-performing loans (NPLs) ratio to 4.4 percent after operating for a year under a Government-approved restructuring scheme.

The bank plans to reduce the NPL rate, which stood at 6.68 percent early this year, to below 3 percent in 2018.

Under the restructuring scheme approved by the Government and the State Bank of Vietnam, Sacombank is allowed to settle its NPLs within 10 years, starting from 2017. However, the bank has targeted to complete the difficult task within five years.

Sacombank Chairman Duong Cong Minh said the bank’s restructuring scheme, including shaking up the bank’s organisation and human resources and re-arranging transaction networks and branches, was based on the strategy of “developing rural areas to support urban zones.”

Minh affirmed that his bank has taken drastic measures to implement the restructuring scheme. He believed that bad debt settlement will be effective due to upbeat signs in the property market and the National Assembly’s legal provisions for bad debts.

Sacombank’s representative announced that the two major goals in the 2018-20 period will be to speed up the bank’s restructuring process and the settlement of bad debts to improve its asset quality.

In addition, the bank will expand cooperation, aiming to reduce competitive pressure in the sector and become the top retail bank in the country and the region.

By the end of this year, the bank’s total assets are estimated to rise 11.5 percent. Its credit growth and capital mobilisation have also risen by 12.9 percent and 11.5 percent, respectively.

The bank currently has 566 transaction offices in 48 cities and provinces of Vietnam, Laos and Cambodia.

Nhan Co aluminum plant surpasses yearly target

Nhan Co aluminum plant under the Vietnam National Coal – Mineral Industries Group (Vinacomin)’s Dak Nong aluminum company produced 501,000 tonnes of aluminum during its first year of operation, 104 percent of its target. 

Construction of the plant started in the Central Highlands province of Dak Nong in June 2007 with total investment of more than 16.8 trillion VND (740 million USD) and total capacity of 650,000 tonnes per year. In late 2016, it began test operations and churned out commercial products. 

Its products are mostly exported to Japan, the Republic of Korea, Hong Kong (China), Singapore, the United Arab Emirates and Switzerland. With more than 98.6 percent of alumina content, its aluminum products are popular worldwide. 

In the domestic market, aluminum and hydrate are sold to the South Mining Chemical Industry Company, the Chuan Kuo ceramics JSC and My Le company. 

This year, the Dak Nong aluminum company earned nearly 185 million USD from aluminum exports, contributing 240 billion VND (10.6 million USD) to the State budget, up 136 billion VND (6.04 million USD) from 2016. 

According to the Dak Nong Department of Industry and Trade, the province’s industrial production value rose by 40 percent annually and export revenue hit a record 1 billion USD, 13 percent of which was from aluminum exports. 

The Dak Nong aluminum company aims to produce 580,000 tonnes of aluminum in 2018.

Vietnamese farm exports have big potential in China

The potential for Vietnamese farm produce exports to China and the market’s quarantine requirements were discussed at a conference in the northern mountainous province of Ha Giang on December 26.

The event, held by the provincial People’s Committee and the Ministry of Industry and Trade’s Department of Asia-Africa Market, aims to connect businesses and managers from Vietnam and China, helping boost shipments of farm produce to the neighbouring country.

According to To Ngoc Son, Deputy Head of the Department of Asia-Africa Market, the two countries have enjoyed robust two-way trade in the past year, with Vietnam China’s largest trade partner in ASEAN while China is the second largest export market of Vietnam.

He noted that during January-November, Vietnam earned 6.98 billion USD from farm produce exports to China, 40 percent more than in the same period last year.

The Ministry of Industry and Trade pays attention to sustainable shipments to foreign markets, including China, he said.

Most Vietnamese agricultural exports to China, including fruit, cassava and dried seafood, are shipped via Thanh Thuy International Border Gate in Ha Giang province.

In 2017, nearly 350 enterprises had products shipped to China through the gate, up 200 from last year.

Sacombank JCB Ultimate credit card launched
     
Sacombank and JCB International Co. Ltd. (Japan) on December 25 launched Sacombank JCB Ultimate credit card in Viet Nam.

This is the most prestigious JCB card for individual customers in Viet Nam, and people should have an income of VND80 million (US$3,522) per month to qualify for it.

Cardholders can get cash back for all transactions during weekends at certain merchants such as restaurants and supermarkets at the rate of 15 per cent for overseas spending and 10 per cent for domestic spending.

It is 0.5 per cent for spending on weekdays.

Cardholders can get a free dish when dining at high-end Japanese restaurants such as Fuji and Chiyoda Sushi (HCM City) and Makoto (Ha Noi).

They are also entitled to other privileges such as travel insurance of up to VND10.5 billion; free use of over 57 airport lounges in Japan, China, Hong Kong, Singapore, South Korea, Thailand, and Viet Nam; and global support through a free hotline when booking cars, hotels, restaurants and golf sessions in Japan.

Until February 28, customers getting a card and spending at least VND30 million within 30 days will get a pair of coupons for a five-star restaurant buffet valued at VND3 million.

The five cardholders with the highest spending will get one night’s free stay for two people at The Six Senses Ninh Van Bay, Emeralda Ninh Bình or Ana Mandara Villas Dalat. 

Bamboo Capital sells bonds to 3 Korean companies

     
Bamboo Capital Joint Stock Company has successfully issued corporate bonds worth nearly VND113 billion (US$4.97 million) to three major Korean companies: Chosun Refractories, Daewon, and Woomi Construction.

BCG, which develops real estate projects in HCM City, Quang Nam, and Da Nang, approached foreign investors, especially Korean corporations, interested in the Vietnamese market.

After several meetings the three Korean firms agreed to buy nearly VND113 billion worth of bonds issued by BCG at a coupon rate of 6 per cent for a three-year tenor.

The money raised will be used to fund property projects.

BCG’s real estate projects in Quang Nam and Da Nang will start in early 2018 and be completed in around 18 months.

BCG has worked with international firm Bakh Architecture for the projects’ master plan.

Established in 1947, Chosun Refractories manufactures refractory products and exports them to many markets, including the UK, Italy, India, the US, Canada, and Mexico.

Daewon is one of the leading companies in textiles and real estate. Woomi Construction provides real estate development, construction, demolition, and civil engineering services.

BCG is an investment company with interests in production and trading of agricultural products, infrastructure and other real estate development and renewable energy. 

PVEP posts VND3.5 trillion profit
     
PetroVietnam Exploration and Production Corporation (PVEP) has estimated after-tax profit of VND3.5 trillion (US$154.1 million) in 2017.

At a meeting to review its operation held in Ha Noi on Monday, PVEP said its total revenue this year also surpassed 11 per cent of the set target to reach VND34 trillion.

Its total assets were VND135 trillion and ownership capital was VND70.7 trillion. It contributed VND8.6 trillion to the State budget.

As of November 29, 2017, its total output was 3.66 million tonnes

The corporation this year completed and brought some oilfields into operation such as Dai Hung’s (Big Bear) gas gathering project and the water disposal and discharge project connecting Te Giac Trang (White rhinoceros), 11 days sooner than set plans.

PVEP plans to focus on safe and effective exploitation of its oilfields to ensure output of 3.66 million tonnes, 32 days sooner than its set targets next year.

The corporation’s general director Ngo Huu Hai asked all employees complete the targets of 1.3 million tonnes of crude oil and 1.5 billion cu.m gas in 2018. 

Idemitsu Kosan to build 2nd petrol station
     
Japanese oil firm, Idemitsu Kosan Co Ltd (Idemitsu), plans to build a US$1 million Dinh Vu Port Petrol Station.

The petrol station will be located in Dong Hai 2 Ward, Hai An District, in the northern Hai Phong Port City.

If approved, this would be Idemitsu’s second station in Viet Nam. Its first station opened in Ha Noi last October.

Local sources in Hai Phong reported that Japan’s Idemitsu Kosan Chief Representative for Viet Nam, Nobuyuki Nakamura, had a working session with chairman of the municipal People’s Committee, Nguyen Van Tung, about investment plans for the station.

Covering an area of 10,000sq.m, the station is expected to bring about revenue of more than $10 million per year. If all procedures are completed soon, the project will begin construction in January 2018 and be put into operation one month later.

The station would contribute VND46-66 billion a year to the city’s budget.

In addition, it also plans to build a lubricant plant in the city.

Tung hailed the Japanese company’s investment into the city and confirmed that they would create favourable conditions to help them implement the project.

He hoped that the company would continue launching other projects.

First batch of star apples exported to the US
     
The first batch of Vietnamese star apples has been exported to the US by the Cat Tuong Agricultural Products Producing & Processing Co Ltd from the Mekong Delta province of Tien Giang, announced the Ministry of Agriculture and Rural Development (MARD) and provincial authorities on Tuesday.

With the shipment, Viet Nam has become the first and only country licensed to sell fresh star apples to the demanding market, following years of negotiations, according to MARD deputy minister Tran Thanh Nam.

The US is the third largest fruit importer for Viet Nam, with its 2016 fruit export revenue reaching US$84.5 million, an increase of 44.2 per cent over the previous year’s figure.

In the first 11 months of this year, the market imported Vietnamese fruits worth $92.6 million, a year-on-year rise of 21.3 per cent.

Therefore, "the US is a big potential market for Vietnamese fruits in general and star apples in particular," Nam highlighted.

Together with litchi, longan, rambutan and dragon fruit, star apples are the fifth Vietnamese fruit allowed into the American market.

The first shipment of star apples to the US had opened big opportunities for the Vietnamese fruits to penetrate other demanding markets, the deputy minister said.

Nam also expressed his hope that following Cat Tuong, more and more companies would be able to export Vietnamese fruits to foreign markets, especially the US.

Pham Anh Tuan, vice chairman of the provincial People’s Committee, said that this was good news for the country’s agricultural sector as well as local farmers, adding that this was the initial step for international market penetration of Vietnamese star apples in particular and of the province’s specialities.

In the near future, the province would continue taking drastic measures to support the shipment of star apples abroad, including upgrading infrastructure, applying high-tech in intensive farming and building a production value chain, Tuan said.

Dang Hoang Tho, a star apple farmer in Chau Thanh District’s Long Hung Commune, expressed his delight on witnessing the first shipment of star apples to a foreign market.

He said that he had encouraged other farmers to plant star apple trees in accordance with Good Agriculture Practices (GAPs) - the basic environmental and operational conditions necessary for the production of safe, wholesome fruits and vegetables, and collaborate with the Cat Tuong company to increase income from exporting the fruits.

Doan Van Sang, director of the Cat Tuong Agricultural Products Producing & Processing Co Ltd, said that being chosen to be the first Vietnamese star apple exporters, the company had to invest in packaging and preserving facilities to meet the strict requirements of food safety and quarantine of the demanding importer.

To ensure a stable supply of star apples to the US market, the company signed contracts with farmers to help them maintain growing areas, apply intensive farming techniques and sell the products.

Viet Nam has about 5,000 hectares of star apples, mainly in the Mekong Delta provinces of Tien Giang (3,100ha) and Can Tho (1,200ha).

As of December 15, Viet Nam’s fruit export turnover was recorded at US$3.35 billion, 45 per cent higher than last year’s corresponding period. 

HBC wins contract for Kuwait oil project
     
Hoa Binh Construction Corporation (HBC) won a contract to produce reinforced concrete for a refinery project in Kuwait, the corporation said on Monday.

Hoa Binh Construction Corporation (HBC) signed a co-operation agreement with United Gulf Construction Company (UGCC) — the second-largest construction company in Kuwait – to implement a reinforced concrete package as part of the Kuwait Government’s Al Zour Refinery Project, with a bid worth US$20 million.

The Al Zour Refinery is the largest refinery project in Kuwait with total investment of $30 billion.

In Kuwait, HBC also successfully negotiated the first package of the Criminal Evidence Headquarters project worth some $35 million (VND800 billion) with HOT Engineering and Construction — HBC’s strategic partner. This is a key project of the Kuwait government with a very special design. This key project has total investment value of $155 million (VND3.5 trillion).

In May 2017, HBC signed a co-operation agreement with Kuwait-based HOT Engineering & Construction, marking another step in the company’s Middle East market development strategy.

Green financing for small businesses

Domestic and foreign small- and medium-sized enterprises in Vietnam will have a new financial source for their green projects in the country.

The Global Green Growth Institute (GGGI), in co-operation with the Ministry of Planning and Investment’s Small- and Medium-sized Enterprise Development Fund (SMEDF), recently announced a draft handbook on its green growth priorities for small- and medium-sized enterprises (SMEs).

Under the draft handbook, scheduled to be approved and issued in March 2018, for the first time in Vietnam, local and foreign-owned SMEs are entitled to low-interest loans for their “green” projects – at 5 per cent for a short-term loan and 7 per cent for a long-term loan throughout the loan period. The fund will first focus on three sector groups: agri-fishery-forestry; manufacturing and processing; and water supply and the management and treatment of solid waste and wastewater.

Under the Law on Supporting SMEs adopted in June 2017, SMEs refer to firms with no more than 200 employees, maximum total capital of VND100 billion ($4.54 million), and total revenue of the preceding year not exceeding VND300 billion ($13.64 million).

An enterprise is considered ‘green’ if it provides green products or services and/or has green production processes. Green products and services must be environmentally-friendly, use resources effectively, and minimise waste production.

These considerations should be present in product design, input material, and specifications, or presented in the implementation and nature of services.

Green enterprises eligible for SMEDF’s preferential loans, provided via banks, include those that improve production technology to reduce energy and material consumption, and reduce waste and emissions.

In order to secure the loans, a green enterprise must meet some other conditions in terms of management capacity, credit reputation, job creation, gender factor, high-quality products, use of new materials, innovation, and environmental protection and friendliness.

Truong Vy, project manager of Supply Chain Sustainability in Vietnam for international shoes and clothing manufacturer PUMA, said that the handbook will make it easier for SMEs in Vietnam to access SMEDF loans.

“If enterprises in Vietnam want to join the global value chains and co-operate with big foreign enterprises, they must go green,” Vy said. “For PUMA, all suppliers must meet strict requirements about environmental protection and labour. Some 98% of PUMA’s supply and production chains are emission-free.”

Echoing this view, Adam Ward, GGGI’s country representative for Vietnam, stressed, “Consumers now tend to use products produced by firms that have environmentally friendly production processes. Thus the handbook will help firms to more easily determine and select their projects for the loans.”

EVN proposes to striking PVC-Lilama off as contractor of Quang Trach thermal power plant

Electricity of Vietnam (EVN) has proposed the prime minister to replace PVC-Lilama contractor at the Quang Trach 1 thermal power plant project due to its weak capacity as well as EVN’s lack of trust in the company’s ability to develop the construction on schedule, according to newswire Vietnamnet. 

In October 2016, EVN took over the Quang Trach 1 thermal power plant project, located in Quang Trach Power Centre in Quang Binh province, from Vietnam Oil and Gas Group (PetroVietnam).

Previously, in 2011, when PetroVietnam was still the investor of the project, under the PM’s approval, it signed contracts, including a contract on "designs and drawings" and "procurement of equipment, construction, and testing" of the EPC package with PetroVietnam Construction Corporation (PVC). Accordingly, PVC would be the general contractor of the project.

In April 2012, PetroVietnam proposed the PM to convert PVC into PVC-Lilama joint venture, with PVC as the major contractor. The PVC-Lilama joint venture remained the general contractor of the Quang Trach 1 project.

However, after four years of the signing ceremony, the construction of the project had yet to be completed on schedule.

According to EVN, Quang Trach 1 is expected to come into operation by 2021. This means that it only has 50 months left to implement the construction. Meanwhile, EVN said that PVC-Lilama does not have the financial capacity and credibility to implement the project.

Notably, in terms of financial potential, according to statistics of Deloitte Vietnam, as of December 31, 2016, PVC operated with an accumulated loss of VND2.88 trillion ($126.8 million). The short-term debt was VND561 billion ($24.66 million) higher than its short-term assets.

Regarding the credibility of the company, according to EVN’s opinion, PVC has implemented a number of projects most of which had been delayed in construction, causing delay in operation of the plant . These projects  include Thai Binh 2 thermal power, Dung Quat, and Phu Tho bio-ethanol projects.

Due to these reasons, EVN proposed the PM to select another contractor with enough capacity and experience so that it can ensure the timely construction of the Quang Trach 1 project.

Quang Trach 1’s construction was kicked off in July 2011 with total investment capital of $1.7 billion. The plant has a designed capacity of 1,200MV to be produced by two turbines, which were expected to come into operation in June and December 2015, and contribute to the national grid an annual capacity of 8.5 billion kWh.

However, over five years after the ground-breaking ceremony, the construction has been immobile, except a finished office building.

Deputy PM chairs financial-monetary advisory council

The National Council for Financial and Monetary Policy Consultation convened its fourth-quarter meeting in Hanoi on December 26 under the chair of Politburo member and Deputy Prime Minister Vuong Dinh Hue.

At the meeting, the Council made a number of proposals to the Government and the Prime Minister related to the implementation of macroeconomic, monetary and fiscal policies.

The State Bank of Vietnam should manage interest rates in line with the macro balance, inflation and monetary market, and address the relationship between deposit and lending rates in addition to striving to reduce lending rates. Credit should be provided in accordance with the absorption capacity of the economy, while the structure and quality of credit should be strictly managed.

The Government should also clarify the difficulties related to the balance of the central and local budgets, the disbursement of public investment capital, and the efficiency of fiscal policies.

Accordingly, the Government should prioritise the fight against tax loss while expanding the tax base rather than raising tax rates; actively make budget collection estimates based on socio-economic data. In addition, expenditures shall be made according to estimates and levels of budget collection.

It is also necessary to develop the capital market in general and the stock market in particular, as well as devise more effective measures which will prevent insider trading and price making on the stock exchanges.

Under the PM’s Decision 59/2011/QD-TTg, the council is designed to advise the Government and the PM on major policies, projects and proposals as well as other important issues in the fields of finance and monetary management at the macroscopic level.

The council serves as a mechanism to bring together managers and researchers in the area to provide consultations in macro-economy management.

Textile-garment exports exceed EAEU limit

Vietnam’s textile and garment exports to the Eurasian Economic Union (EAEU) have exceeded trigger levels, or the total amount subject to preferential tariffs allowed into EAEU markets for this year, the General Department of Vietnam Customs said on its website.

According to the Ministry of Industry and Trade, the Department of Domestic Market Protection of the Eurasian Economic Commission has announced that 173.3 tons of underwear and 112.7 tons of children’s clothes from Vietnam had been shipped to EAEU in the year to end-October, exceeding the trigger levels for this year in accordance with a free trade agreement between Vietnam and EAEU.

The agreement also stipulates that the union can slap safeguard duties on products beyond trigger levels within six months upon the shipment. In case the trigger levels are breached, Vietnamese underwear and children’s clothes will not be entitled to preferential tax and will be imposed Most Favored Nation (MFN) import duties.

HCMC exports heavily reliant on FDI firms

Although HCMC has achieved rapid industrial and export growth this year, the city still heavily relies on foreign direct investment (FDI) in these business areas.

According to a report by the HCMC Department of Industry and Trade, the city’s total exports in 2017 are estimated at US$35.2 billion, up 15.1% compared to the same period last year. Excluding crude oil, the export figure may still hit US$30 billion, up 12% year-on-year. 

The city’s industrial production index, an economic indicator that measures the real production output of manufacturing, mining, and utilities, shall increase from 7.25% last year to 8.48% this year.

Industrial production and exports have contributed greatly to the city’s economic development. However, they have been heavily dependent on the FDI sector.

FDI firms make up more than 50% of the city’s industrial production and nearly 63% of the city’s total exports. Particularly, they account for more than 99% of total exports of hi-tech products.

Besides, the weak cooperation between FDI and local firms has resulted in unsustainable industrial development. 

Logistics, a driving force for industry and trade growth, is still underdeveloped. Most local logistics firms are smaller and weaker than foreign rivals.

Assoc urges antibiotic control to maintain shrimp export growth

It is essential to tighten controls on chemical and antibiotic residues in shrimp to maintain export growth next year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

VASEP general secretary Truong Dinh Hoe on December 25 told the Daily that strict controls on this matter would decide whether Vietnam’s shrimp products could further penetrate certain export markets.

Another problem that needs to be solved next year, according to Hoe, is origin traceability, requiring local players to establish a production chain in which each production stage is under control, thus enabling effective controls on chemical and antibiotic residues.

To compete with India as the top shrimp exporter that has been expanding shrimp farming and lowering production cost, it is imperative to maintain high product quality as a solution to improve the competitiveness of Vietnam’s shrimp, Hoe said.

He added that in addition to ensuring food safety through tighter chemical and antibiotic controls, Vietnam should also attend more to adding value to local products, as buyers will be more receptive to such products.

With the EU-Vietnam Free Trade Agreement (EVFTA), which may be ratified early next year, many shrimp products of Vietnam exported to the EU will enjoy a zero tariff, according to Hoe.

“We do not entirely rely on the EU market, but this is a great opportunity for us to have an export advantage.”

Hoe was speaking to the Daily days after the General Department of Vietnam Customs reported the country’s seafood exports this year to date had grown nearly 20% year-on-year to US$7.6 billion and are poised to hit US$8 billion in all of this year.

Though shrimp exports in the first few months of last year experienced difficulties induced by technical barriers and import tariffs, the overall result in the year to date has been quite good.

A VASEP report showed that the EU market alone imported over US$780 million of shrimp from Vietnam in January-November, up 42.4% year-on-year and equivalent to 22.2% of Vietnam’s total shrimp export in the period.

As Hoe forecast, total shrimp exports this year will reach US$3.8 billion, a rise of US$400 million against the early forecast and US$700 million against last year. “This is such an impressive result as India, the world’s biggest shrimp exporter, has reported some US$4.3 billion.”

Automakers offer small discounts early next year

Some automakers have announced the 2018 prices of their domestically-assembled vehicles at small discounts, despite import tariffs on auto parts are reduced to zero early next year, according to Thanh Nien newspaper.

In particular, Truong Hai Auto Corporation (Thaco) plans to cut the prices of its Kia and Mazda models by VND4-21 million (US$176-926) a unit early next year.

Toyota Motor Vietnam also plans to offer discounts of VND24-58 million per unit to its locally-assembled car models, namely Toyota Vios, Corolla Altis, Camry and Innova.

Hyundai Thanh Cong also follows suit, with Hyundai Grand i10 vehicles lowered by VND20-40 million a unit.
Meanwhile, Ford Vietnam is assembling three auto models in Vietnam, and striving to raise the ratio of local content so that the company can enjoy incentives. However, given many policy impacts, the company is unlikely to cut its prices sharply.

Phan Duong Cuu Long, general director of Saigon Ford, was quoted by Thanh Nien as saying that Ford Vietnam has yet to announce its 2018 prices for its car models.

“Automakers are negotiating (the prices), and are waiting for the Government’s policy. They have merely announced prices for CKD (Complete Knock Down) vehicles.”

Saigon Newport handles around 6.8 million TEUs this year

Saigon Newport Corporation (SNP) is expected to handle an estimated 6.8 million twenty-foot equivalent units (TEUs), or 90 million tons of cargo this year, a year-on-year rise of 13.6%.

SNP deputy general director Phung Ngoc Minh said at a conference in the Mekong Delta province of Dong Thap last week that cargo throughput at the corporation’s ports accounts for 50% of the nation’s total, and 92.5% of HCMC’s.

“At the Cai Mep-Thi Vai deep-sea port complex alone, for example, our operations make up roughly 72%,” Minh said at the conference on logistics development in the Mekong Delta’s transport sector.

He added Tan Cang-Cai Cui Port in the Mekong Delta city of Can Tho has handled 33 container vessels of 44,700 TEUs through the newly-opened Quan Chanh Bo Canal into the Hau River of Tra Vinh Province since 2016.

“The transport volume through our waterway and road systems has reached 71,000 TEUs in the Mekong Delta,” he said.

He added SNP has managed and developed five ports in the Mekong Delta, namely Tan Cang-Sa Dec, Tan Cang-Cao Lanh (Dong Thap Province), Tan Cang-Thot Not, Tan Cang-Cai Cui (Can Tho City), and Tan Cang-Giao Long (Ben Tre Province).

“We will start work on a deep-sea port called Hon Chong in Kien Giang Province early next year,” he said, adding the port would bolster growth in the local tourism sector, and facilitate goods transport, and logistics services for the oil and gas sector.

The corporation is pursuing its strategy based on three business cornerstones – port operation, logistics services, and sea services, according to its deputy general director. Therefore, SNP has developed a port system from the north to the south.
 
New FDI approvals highest since 2009

Fresh foreign direct investment (FDI) approvals in Vietnam this year have hit US$35.88 billion, a rise of 44.4% and the highest since 2009, according to the Ministry of Planning and Investment’s Foreign Investment Agency.

As of December 20, Vietnam had licensed 2,591 new projects whose combined capital is US$21.27 billion, picking up 42.3% year-on-year. Besides, as many as 1,188 projects obtained approval to revise up their investment capital with an additional US$8.41 billion, up 49.2%, and 5,002 deals of capital contribution including mergers and acquisitions with foreign investors’ involvement with a total value of US$6.19 billion, up 45.1%.

Such figures are not the final ones, as certain deals might have not been updated. For example, the transfer of a huge stake of Sabeco to a company with Thailand’s involvement worth US$4.8 billion has not been included in the data provided by the Foreign Investment Agency.

As the ministry estimated, FDI projects have disbursed US$17.5 billion in the year, the highest ever.

Of the 19 areas that foreign investors have invested in, the processing-manufacturing sector attracts the largest amount with US$15.87 billion, accounting for 44.2% of total registered capital. It is followed by electricity production and distribution with US$8.37 billion (23.3%) and real estate with US$3.05 billion (8.5%).

Foreign investors in Vietnam come from 115 countries and territories. Japan has ranked first when registering US$9.11 billion (25.4%), South Korea second with US$8.49 billion (23.7%) and Singapore third with US$5.3 billion (14.8%).

FDI capital has been injected into 59 provinces and cities nationwide. However, HCMC has made up the highest proportion of registered capital, 18.1% and US$6.5 billion. Other localities with large FDI pledges are Bac Ninh with US$3.4 billion (9.5%) and Thanh Hoa with US$3.17 billion (8.8%).

Among the major projects licensed this year is the Japan-invested BOT Nghi Son 2 thermal power plant worth US$2.79 billion in Thanh Hoa Province.

Other BOT thermal plants getting approved are Van Phong 1 in Khanh Hoa Province having registered capital of US$2.58 billion and Nam Dinh 1 in Nam Dinh Province worth US$2.07 billion. The two projects are invested by Japanese and Singaporean investors respectively.

In addition, Samsung Display Vietnam adjusted up its investment in Bac Ninh Province by US$2.5 billion.

Lam Dong calls for foreign investment in 53 projects

The Central Highlands province of Lam Dong is calling for investment in 53 projects, including three national-level projects and 50 provincial-level ones. 

The information was released at an investment, trade and tourism promotion conference on December 26. 

Tourism and agriculture are the prioritized sectors in the province in the upcoming year, said Vice President of the Lam Dong provincial People’s Committee Nguyen Van Yen. 

Currently, as much as US$528 million was poured in 103 foreign-invested projects and 820 domestic projects, worth VND114,992 billion have been launched in the province. 

At the conference, the province encouraged investment in three national-level projects including upgrading Da Lat-Thap Cham railways, Da Lat railway station, Dau Giay-Lien Khuong Highway and Lam Dong high-tech farming area. 

Besides, 50 provincial-level projects in such areas as agriculture, tourism, service, trading, industry, science and technology were also introduced. 

Projects in the province will enjoy preferential treatment in land hire, corporate income tax, import-export, vocational training, investment promotion and market development.   

Conference highlights VN’s export potential to China

The potential of the export of Vietnamese agro-forestry-fishery products to China was highlighted at a conference held in the northern mountainous province of Hà Giang on Tuesday.

During the event, co-organised by the provincial People’s Committee and the Ministry of Industry and Trade’s Asia-Africa Market Department, participants heard about China’s quarantine requirements on imported agro-forestry-fishery products.

Tô Ngọc Sơn, Deputy Head of the Asia-Africa Market Department, spoke highly about the significant growth in two-way trade between Việt Nam and China.

Việt Nam is now China’s largest trade partner in the ASEAN, while China is the second largest export market of Việt Nam, he said. Farm produces always make up a remarkable ratio in China’s imports from Việt Nam. 

Most Vietnamese agricultural exports to China, including fruit, cassava and dried seafood, are shipped via Thanh Thủy International Border Gate in Hà Giang Province. In 2017, nearly 350 enterprises had products shipped to China through the gate, up 200 from last year.

Over the past 11 months of this year, Việt Nam had exported US$6.98 billion worth of agro-forestry-fishery products, 40 per cent more than in the same period last year.