Vietnam’s veggie exports stage strong growth

Vietnam’s vegetable and fruit exports in the first four months of the year rose a staggering 29% year-on-year to some US$1.3 billion, with China-bound shipments generating nearly US$1 billion, customs data shows.

Last month alone saw veggie export revenue hitting US349.6 million, up 8.7% month-on-month, according to data of the General Department of Vietnam Customs.

Exports of vegetables and fruits to neighboring China fetched US$988.8 million in the four months, up 30.1% year-on-year, which accounted for 75% of Vietnam’s total export revenue in the sector. Last year’s corresponding proportion was 74.3%.

The customs said that besides China, 14 other importers of Vietnamese vegetables and fruits have also bought much more than in the same period last year.

The United States, Vietnam’s second biggest importer of vegetables, spent over US$38.8 million importing such farm produce in the past four months, a year-on-year surge of 12.8%.

Meanwhile, Japan spent US$36.6 million on Vietnamese vegetables and fruits, up by 16.4% year-on-year, followed by South Korea and Thailand with US$34.78 million and US$22.65 million respectively, soaring 13.5% and 28.8%.

Notably, scores of new buyers have spent much more money on Vietnamese veggies, including Australia with US$9 million, up 35.1%, France with US$8 million, up a whopping 42.9%, and Canada US$7 million, up 26.8%.

Data of the department also indicates that only Russia and Taiwan have recently reduced veggie imports from Vietnam.

Analysts attributed Vietnam’s strong surge in veggies export revenue to high quality and safe products and technical barriers being removed recently to create favorable conditions for other farm produce like dragon fruit, rambutan, longan and lychee to enter numerous choosy markets such as Japan, South Korea and New Zealand.

Sixth Vietnam Startup Wheel launched for entrepreneurs at all ages

The sixth Vietnam Startup Wheel in 2018 was launched on May 15 nationwide for all individuals, groups and startup business founders residing in Vietnam regardless of their age.

According to the organising board, contestants can submit their startup ideas, products, services or technologies to the contest from now to the end of May. The final and awards ceremony will be held in August this year.

Truong Ly Hoang Phi, Director of the Ho Chi Minh City Business Startup Support Centre said that with the expansion of participants to all ages and all those residing in Vietnam instead of from 18-35 years old and Vietnamese citizens as previous, the contest aims to create an international environment for studying with the involvement of startups from all countries, thus helping domestic startups challenge themselves with competition from domestic and foreign rivals.

Phi said that in the past, the annual contest has been the largest playground for Vietnam’s startup community, while helping them conquer important targets in their development strategy, introduce their products to investors and commercialise their products. 

The contest aims to connect the startup ecosystem in the country, nurture startups and encourage the support of partners for young enterprises.

Meanwhile, Ngo Minh Hai, Deputy Secretary of the Ho Chi Minh Communist Youth Union’s municipal chapter and Vice President of the Vietnam Youth Federation of Ho Chi Minh City said one of the objectives of the contest is spreading the startup movement among youngsters.

Founded by Ho Chi Minh City Business Startup Support Centre and Young Businesspeople Association under the Vietnam Youth Federation of Ho Chi Minh City, Startup Wheel was first launched in 2013 and has become one of the biggest events for the startup community.

Last year, the contest drew more than 30,000 participants with 767 ideas and projects.

Spinning sector greatly contributes to textile export

Vietnam’s fibre and yarn production and export is witnessing a strong growth, boosting the country’s textile and garment export turnover. 

In 2017, Vietnam earned 31 billion USD from exporting textiles and garment products, fibre, cotton and materials, of which exports of fibre contributed 3.59 billion USD, up 22.7 percent year-on-year. 

Nguyen Thi Tuyet Mai, vice general secretary and chief representative of the Vietnam Textile and Garment Association (VITAS) in HCM City said in addition to traditional textiles products, high value-added items such as fabrics, fibre and yarn and textiles and garments accessories have grown well in the first months of 2018.

Notably, Vietnam’s fibre and yarn export alone reached 906 million USD in the first quarter of 2018, up 16.5 percent year-on-year. 

Nguyen Binh An, General Secretary of the Vietnam Cotton and Spinning Association, said prior to 2000, the spinning sector’s production scale reached only 1 million spindles but its capacity was raised to 3.7 million spindles in 2007 and 7 million spindles at present. 

Two thirds of yarn produced in Vietnam is for export now, with the main importers being China, Turkey and European and American countries. 

Mai said the production scale of Vietnam’s spinning industry would become bigger in the future thanks to advantages brought by free trade agreements the country has joined. 

Vietnam is seen as an ideal destination for foreign-invested spinning projects. The Republic of Korea, China and Hong Kong (China) are leading investors of spinning factories in Vietnam. Japan also outsources yarn products to Vietnam.

In 2017, Vietnam exported 700,000 tonnes of fibre and yarn to China.

Experts said many foreign enterprises have invested in Vietnam’s garment and textile industry to exploit opportunities after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership agreement was signed.

MoF aims for e-finance system by 2025     

Innovation in mobile devices and cloud technology on a large scale is key to technological application of the fourth industrial revolution, said Minister of Finance Dinh Tien Dung.

According to the resolution, the Ministry of Finance is applying technological achievements of the fourth industrial revolution to build a smart governance system, as well as providing smart financial services, and actively participating in the development of the digital economy.

The sector will plan to gradually switch applications to the cloud environment while setting up a comprehensive information security governance system, in compliance with Vietnamese regulations and international standards.

When operational, the financial cloud will help improve the electronic working environment. The use of data sharing, streamlining and automating internal processes, and providing the ability to search information on mobile devices, will combine towards paperless offices.

The application of new technology in the fourth industrial revolution period will also create a digital financial ecosystem based on the open data of the finance sector, creating conditions for people, enterprises, agencies and organisations to easily, and equally access information of the sector.

At present, the Government of Viet Nam is investing heavily into the building of e-government structures.

The digital government invests in new technologies of the fourth industrial revolution era such as Internet of Things, blockchain, mobility, cloud computing, big data, data analytics and artificial intelligence to streamline or eliminate processes. This will allow the Government to innovate management and public services, bringing greater efficiency and effectiveness in the digital era.

Becamex, Warburg Pincus in joint venture     

Warburg Pincus, a leading global private equity firm focused on growth investing, and Becamex IDC Corp, the construction and development giant in Viet Nam, officially launched their joint venture BW Industrial Development Joint Stock Company on Tuesday.

With an area spreading over two million sq.m and an initial investment capital of over US$200 million, BW Industrial is the largest ‘for-rent’ industrial and logistics developer in Viet Nam.

In particular, BW Industrial will focus on supporting the sustainable development of Viet Nam. They are a strategic investor in the global supply chain. With the mission of providing value-added services to other industries through BW Industrial joint ventures, the company ensures to provide the best and most modern real estate solutions for investors in different fields such as mechanical manufacturing, electronics, automobile manufacturing, garments and footwear.

BW Industrial was seeded with eight projects across five cities in each of Viet Nam’s strategic industrial hubs in the North and South, including Binh Duong, Dong Nai, Hai Phong, Hai Duong and Bac Ninh. According to the plan, BW will build the foundations of industrial real estate and logistics services to meet the needs of multinational corporations as well as e-commerce companies in Viet Nam.

Jeffrey Perlman, managing director and head of the Southeast Asia division of Warburg Pincus, said, with a sizable population of nearly 100 million people and an increasingly diversified economy, manufacturing and domestic consumption had become the central areas of growth for Viet Nam. This was an ideal time to tap into these growth opportunities with the goal of taking Viet Nam’s industrial and logistics value chain to the next level, he added.

According to Nguyen Van Hung, chairman of Becamex IDC, Becamex contributes only 30 per cent of capital in this joint venture. It is also the policy that Binh Duong Province wants to call for investors to invest in, build for the socio-economic development of the locality. This is also a priority for profit sharing for investors.

Established in 1976, Becamex specialises in developing large-scale industrial townships with one of the largest industrial landbanks in key markets across Viet Nam. Becamex has formed a number of partnerships with foreign players such as Tokyu Corporation, a major Tokyo-based infrastructure developer, and Sembcorp, a Temasek-sponsored industrial group through the Viet Nam Singapore Industrial Park platform (VSIP), which is now widely recognised as one of the most successful industrial park developers in Viet Nam, with over $10 billion of investments to-date.

Warburg Pincus started investing in Southeast Asia in 2013 with Viet Nam as its maiden market. Since then, Warburg Pincus has committed over $1 billion in the region, including in Vincom Retail, Lodgis Hospitality, ARA Asset Management, Go-Jek, NWP, Trax, and others. Currently, the firm has more than $44 billion in private equity assets under management.

VN-India set to boost trade ties

The Assam Investment Roadshow, which took place in Ha Noi on Monday, gave businesses from India in general and from the Assam region in particular investment opportunities with Vietnamese partners, especially in the agricultural field.

A delegation of representatives from government agencies and businesses, headed by Sarbananda Sonowal, Chief Minister of Assam, attended the event along with other Vietnamese firms and representatives from the Vietnam Chamber of Commerce and Industry.

At the seminar, Sonowal invited Vietnamese businesses to invest in fields with preferential treatment in India and the Assam market, such as high-tech agriculture, industry, tourism, energy, and trade.

“I am glad to showcase the potential and possibilities of the State at the Assam Investment Roadshow in Hanoi, and lead a delegation of legislators, officials and farmers to Vietnam, a country from which Assam can learn from immeasurably, especially in the agriculture sector,” said Sonowal.

He also asked for Viet Nam’s help to accomplish the Government’s aim of doubling crop income by 2020, and requested Viet Nam open a consulate office in the Assam capital of Dispur.

Assam is a major state in northeastern India, which in recent years has been playing a central role in boosting economic cooperation between India and ASEAN countries.

Monday’s Roadshow was jointly organised by the VCCI in collaboration with Embassy of India and the Government of Assam, India.

Before attending the Roadshow, Sonowal had met with Cao Duc Phat, a member of the Party Central Committee and Vice Chairman of Central Economic Commission, and Ha Cong Tuan, Deputy Minister of Agriculture and Rural Development, as well as Hoang Binh Quan, Chairman of the External Relations Commission.

Bilateral collaborations on technology and the exchange of knowledge for the benefit of farmers from both countries were discussed.

According to figures from India’s Ministry of Commerce and Industry and the General Department of Vietnam Customs, exports from Viet Nam to India in the first three months of 2018 had reached US$1.57 billion, up 111 per cent from the same period last year. March 2018’s exports from Viet Nam alone reached $637.63 million, up 120 per cent from March 2017.

Imports from India to Viet Nam in the first quarter totalled $1.04 billion, a slight increase of 2.4 per cent from the previous year. The trade surplus for Viet Nam in March was around $267.75 million, and the first quarter reached $532.60 million, a record level so far.

Viet Nam’s products with strong export growth include machinery, equipment, tools and spare parts, as well as steel products, coal, rattan, bamboo, rush and carpet products , and mobile phones and phone accessories.

In the opposite direction, imported Indian commodities with high growth rates include ores and other minerals, plastic materials, car parts and paper.

King Broker eyes nation-wide expansion     

King Broker plans to expand operations to all 63 provinces and cities, according to Trinh Nguyen Tuan Anh, the founder of the real estate company.

King Broker has been in operation for five years, during which time it has set up systems to support property brokers including organising online training, setting up social media channels to connect brokers and solutions based on Big Data.

It now has nine branches — in Lao Cai, Ha Noi, Thanh Hoa, Ha Tinh, Quang Binh, Binh Thuan, Dong Nai, Vung Tau, and HCM City – Anh said.

Late last week, to connect brokers, King Broker and Investment Review organised a seminar for 200 brokers in Vung Tau and Dong Nai provinces.

Participants spoke about the market in the two provinces and discussed opportunities and challenges thrown up by industry 4.0 were discussed so that brokers could learn how to succeed in the new technological era.

Vinamilk to spend $127m to advance 2018 dividend     

Vinamilk will pay the interim dividend for 2018 and issue additional shares to increase the share-capital in the third quarter.

On September 6, the dairy company will finalise the list of shareholders that will receive the interim dividend for 2018 at the ratio of 20 per cent (equivalent to VND2,000 per share-holding).

The dividend will be paid in cash on September 26, which means Vinamilk will spend some VND2.9 trillion (US$127.2 million) for this payout.

Earlier, in its annual shareholders’ meeting on March 31, Vinamilk set a target of VND55.5 trillion in revenue and VND10.75 trillion in net profit in 2018.

The 2018 dividend ratio is set at least 50 per cent of the after-tax profit. The first payment will likely happen in the third quarter of this year, while the second disbursement will be made in May or June 2019.

In its filing to the State Securities Commission and HCM Stock Exchange, Vinamilk also announced the plan to issue 290 million additional shares to the existing shareholders at the par value of VND10,000 each.

The issuing ratio is 5:1, which means that for every five ordinary shares held at the record date, which will be September 6, shareholders will receive one bonus share.

The Vinamilk shares have been seeing a downtrend since last week with a total loss of 7.4 per cent during May 7-15, being traded at around VND176,000 ($7.72) per share.

The dairy firm reported a fall of 9 per cent in its consolidated net profit in the first quarter of this year, earning 2.68 trillion ($118 million) by the end of March.

StoxPlus: Cement industry to recover through robust export activities     

As stated in StoxPlus Cement Market Report 2018, the Viet Nam cement and clinker sales volume reached 80.3 million tonnes in 2017, posting an increasing growth rate for three years in a row. Although the domestic consumption contributed to more than 70 per cent of the total sales for several years, the recent years have witnessed a sluggish growth rate from 9.5 per cent (2015) to 1.4 per cent (2017). While domestic consumption sustained its growth, the export activity drove the market with the export volume surging up to 19.7 million tonnes, leading to a robust growth of 27.7 per cent year on year, thanks to the increasing demand from key markets, including Bangladesh and the Philippines.

Additionally, China emerged as a potential export market as the Chinese government has implemented an unprecedented pollution crackdown in November 2017, with the country shutting down tens of thousands of cement factories in an effort to address China’s air pollution. Compared to 2016, the cement export volume fell sharply by 21.4 per cent, while clinker posted a strong growth of 53.8 per cent, making it the key driver of cement exports in 2017. This could be explained by the fact that foreign countries tend to favour clinker imports over cement due to the cost, and this trend will continue to shape Viet Nam’s cement exports in the long-term prospects.

Supply: While local private companies continued to launch “mega” projects, the foreign giant strengthened its presence via M&A activities

According to StoxPlus database, there are some 107 cement facilities with a total capacity of 120.9 million tonnes per year (MTPY) belonging to 93 companies in Viet Nam, of which VICEM and foreign-owned companies recorded high utilisation of more than 80 per cent. In 2017, private companies continued to operate five new “mega” projects with total capacity of up to 18.5 MTPY, resulting in a surge in the total production capacity by 18 per cent. The projects are developed not only by giant local private companies such as Vissai or ThaiGroup, but also by other local players, especially Thanh Thang and Long Son, which indicated a trend in favour of large-scale projects.

In line with StoxPlus’s analysis, cement facilities can hardly operate efficiently if the designed capacity is under one MTPY, especially when taking into account the electricity cost, maintenance expenses and other fixed costs. With regard to foreign players, 2017 witnessed active M&A prospects when SCCC and SCG invested heavily through the entire ordinary share acquisition of LafargeHolcim and VCM, respectively.

Positive signal from regulatory framework

In December 2017, the Vietnamese Government issued Decree No 125/2017/ND-CP, which is expected to boost Viet Nam’s cement export activities. The entitled zero per cent export tariff for cement has sharpened Viet Nam’s competitiveness, especially in the fierce race with ASEAN countries apart from China. It is estimated that export companies can now enjoy higher profit by US$3-4.5 per tonne under the new tariff.

Additionally, enterprises are being encouraged to participate in export activities thanks to the VAT reimbursement scheme. New regulations have taken effect immediately, which is indicated in the 4M/2018 export results. In 4M/2018, the total cement sales reached 29.83 million tonnes, recording a growth rate of 13 per cent year on year, mostly owing to the active export activities which increased by 29 per cent year on year.

Based on StoxPlus analysis of macroeconomics and the historical cement demand since 2000, associated with the impact of related factors such as the status of infrastructure development and the residential house construction recently, the demand for cement is projected to grow at a rate of 5 per cent until 2030. Viet Nam is expected to face continuous supply surplus before reaching the equilibrium in 2027 at 130.8 million tonnes of cement, if the uncertain cement projects in Viet Nam are not taken into account. Even though Viet Nam’s cement sector still moves in tandem with the real estate boom and burst, this industry is still expected to enjoy healthy growth in the years to come.

Telefilm expo attracts 250 exhibitors     

The sixth Vietnam International Exhibition on Film and Television Technology (Telefilm) will be held next month in HCM City, showcasing products, services and technologies used in film and television.

It has attracted more than 250 exhibitors from 15 countries and territories and more than 2,000 film and television technology professionals.

On display will be TV programmes and serials; value-added and support services; technology and solutions for the TV, media, and communications industries and for image processing and transmission; and post-production services,

Several seminars will be held on the sidelines on current television trends amid rapid digitisation in the TV industry globally and in Viet Nam.

As a prestigious international exhibition specialising in film and television, Telefilm will offer visitors the opportunity to meet potential partners and learn about the latest international film and television trends.

Organised by Viet Nam Television and the ADPEX Joint Stock Company, the exhibition will he held from June 7 to 9 at the Saigon Exhibition and Convention Centre in District 7.

Tiki reports second year of losses

Tiki’s consecutive losses raise the question whether these are still planned losses or are a result of losing the e-commerce race to competition.

Tiki was established in 2010 as a startup e-bookstore but has since diversified operations to sell phones, tablets, digital devices, electrical appliances, toys, and souvenirs.

In August 2013, Tiki signed a strategic partnership with Japan’s Sumitomo Corporation and became the first e-commerce company in Vietnam to receive investment from the Japanese company.

Under the partnership, Sumitomo would hold a 30 per cent stake in Tiki to become its second strategic investor, after Japanese investment fund CyberAgent Ventures (15 per cent).

In May 2016, VNG Corporation, Vietnam's top provider of Internet content, completed a VND383-billion ($17.02 million) deal to acquire a 38 per cent stake in Tiki. Accordingly, VNG spent VND104,000 ($4.57) per share, with the expectation to acquire benefits from one of the largest e-commercial platforms in Vietnam.

With backing from Japanese investors Sumitomo Corporation and CyberAgent Ventures, which own a combined stake of 45 per cent, in collaboration with the investment from VNG, Tiki was expected to become a heavyweight in the e-commerce sector in the country. However, the firm has been reporting losses for two consecutive years now.

Notably, according to the financial statement of VNG Corporation, a shareholder of Tiki, in 2017 Tiki reported a loss of VND282 billion ($12.38 million), triple its charter capital and seven times higher than the loss in 2016. Hence, Tiki’s total losses two years after receiving investment from VNG were VND320 billion ($14.05 million).

Tiki CEO Tran Ngoc Thai Son stated that the losses are a part of the firm’s long-term development plan. Tiki is expanding its scale of operations via investing in infrastructure, warehouses, human resources, and technology.

In reality, according to the statistics of Euromonitor, Tiki ranked sixth among the online shopping sites of Vietnam in 2017 with the visitor volume of 15.08 million. However, according to customers, there is a painful lack of transparency in Tiki’s promotion programmes. Notably, the firm often increases selling price quietly to then provide discounts at the original price.

Earlier this year, Tiki received $54 million in Series C investment made by Chinese internet giant JD.com and South Korea's STIC Investments. The additional capital is expected help Tiki to consolidate its market presence.

At present, the Vietnamese e-commerce sector holds great potential but is also a playground ruled by strict competition by numerous heavyweights.

The fierce competition was shown after a series of e-commerce floors had to shut down because of big losses. Beyeu, Deca, and Lingo left the market after long struggles to survive.

According to industry insiders, companies need to allocate enormous expenses for their e-commerce business from sales and marketing to warehousing and logistics, so it can easily eat up profits. Also, many platforms suffered losses from special discount offers and promotion campaigns to snag new customers.

At present, it is still early to conclude that the consecutive losses of Tiki is a show of weakness, however, Beyeu, Deca, and Lingo are signals that the market is not for players lacking financial potential or methodical development strategies.

VINACAS Golden Cashew Rendezvous to be held in Halong Bay

The 10th Vietnam Cashew Association (VINACAS) Golden Cashew Rendezvous (GCR-2018), a Vietnamese national trade promotion program, will be held from October 5 to 7 in Ha Long Bay. Ha Long Bay is a UNESCO World Heritage Site and an iconic tourism destination of Vietnam.

The program is organized by the Vietnam Cashew Association (VINACAS) and is supported by the Ministry of Industry and Trade and Ministry of Agriculture and Rural Development of Vietnam.

As the world’s cashew hub, the GCR-2018 is the place where more than 500 esteemed cashew stakeholders can find real cashew partners and deals and acquire the most reliable cashew information and forecasts from qualified panelists from all over the world.

VINACAS hopes that all cashew kernel buyers, raw cashew nut sellers, and other cashew stakeholders will have a wonderful time and enjoy Vietnam’s unique atmosphere, splendid scenery and traditional cuisine. 

One day prior to the event, a wonderful tour called “Cashew Roadshow” will be held from Hanoi to Ha Long Bay. Along the Cashew Roadshow, attendees will have the opportunity to visit the sites and culture of Vietnam’s capital, Hanoi. These places include Hanoi Old Town, Hanoi Water Puppet Show, and Bat Trang Pottery Village, which are on the list of top ten destinations by TripAdvisor. Upon arrival at Ha Long Bay, the attendees can enjoy the marvelous “Ha Long Bay Sea-Caravan Tour.”

In addition to the pre-tour, the organizers will bring the participants on a memorable trekking post-tour from Ha Long Bay to Sapa - a mountainous region in the north of Vietnam where there are a few nearby cashew processing units.

Sapa, one of the most attractive tourism destinations in the country, is a precious gift that Mother Nature has given Vietnam. Located here is Fansipan or "The Roof of Indochina," where one can view many picturesque sights.

UOB to debut in July

The Singapore-based United Overseas Bank (UOB) has received a business registration license and is scheduled to open on July 2.

Under the license, the bank will be able to expand its network in the country enabling UOB to extend financial support and offer best-in-class products and service to consumers and businesses beyond Ho Chi Minh City.

UOB Vietnam has a charter capital of VND3 trillion ($131.3 million) and has permission to operate in the country for 99 years.

This is the first Singaporean bank in Vietnam and is the ninth bank with 100 per cent foreign capital in Vietnam.

On March 23 last year, during Singaporean Prime Minister Lee Hsien Loong’s visit to the country,  the State Bank of Vietnam announced that it had given preliminary approval for UOB to set up in Vietnam. The bank received its in-principle license in July of the same year.

Previously, UOB had launched a business banking service dedicated to helping small businesses in Vietnam grow. This followed the State Bank of Vietnam’s licensing of UOB as a foreign-owned subsidiary bank on September 26, 2017.

The bank recently signed a memorandum of understanding (MoU) with Toong to provide UOB’s small and medium-sized enterprise (SME) customers with preferential rentals at any of Toong’s five co-working office spaces in Vietnam.

UOB customers will enjoy up to 20 per cent off rentals and have access to Toong’s business partners, including legal and accounting firms, who can advise them on issues such as local incorporation.

The bank has also partnered with the Foreign Trade University (FTU) to launch the finance industry’s first tertiary education program designed for small business bankers in Vietnam.

Aside from UOB Vietnam, the eight other foreign banks in Vietnam are Standard Chartered (UK), Shinhan Vietnam (the Republic of Korea), Hong Leong Bank, CIMB, Public Bank Berhad (Malaysia), CitiBank (US), HSBC (Hong Kong), ANZ (Australia).

GDP grows 7.38% in Q1

This year’s first quarter saw the nation’s gross domestic product (GDP) growth hitting 7.38%, or 30 basis points higher than in the final quarter of 2017, heard a meeting of the National Assembly Standing Committee.

Ha Ngoc Chien, head of the NA Ethnic Council, was quoted by VnEconomy as saying at the meeting on May 14  that the higher GDP growth rate of last quarter was a good result, as GDP growth in the first quarter of the previous years was often lower than in other quarters.

Deputies attending the meeting spoke highly of positive socio-economic results of last year.

Chairwoman of the NA Justice Committee Le Thi Nga said the Government had acted promptly upon pressing issues, and relevant agencies have managed to live up to commitments by the Government. Such performance is made possible owing to a working group having been established to oversee the implementation of conclusions of Government leaders, she added.

According to Nga, much red tape has been removed. In addition, the Government has operated in a more transparent manner when dealing with cases such as the MobiFone-AVG deal and the 12 loss-making projects under the management of the Ministry of Industry and Trade. 

However, while factors behind good results were analyzed in detail in socio-economic reports, areas with poor performance have not been brought to light, head of the NA Committee for Legal Affairs Nguyen Khac Dinh commented on the Government’s reports.

According to Dinh, export growth has still depended greatly on foreign direct investment (FDI) enterprises. Besides, the capital of investment projects licensed in January-March averaged out at only US$3.4 million, equivalent to one third of the projects in 2014.

Head of the NA Committee for External Relations Nguyen Van Giau asked the Government to pay special attention to dealing with weaknesses and drawbacks of the economy, including low labor productivity.

CAAV rejects service discounts for Etihad Airways

The Civil Aviation Authority of Vietnam (CAAV) has requested the Ministry of Transport to not offer service discounts on flights to Vietnam as requested by the UAE’s Etihad Airways.

According to the CAAV, the price range for air services is stipulated in Decision 2345/QD-BGTVT dated August 8, 2017, which does not provide special price policies for airlines operating flights to and from Vietnam. The discount request by Etihad Airways cannot be accepted.

Since October 2013, Etihad Airways has been operating flights to and from Vietnam’s Noi Bai and Tan Son Nhat international airports. Of these, Abu Dhabi-Tan Son Nhat flights are operated on a regular basis.

In fact, discounts have been offered to airlines but at some smaller airports only.

In 2013, the Ministry of Transport provided special service prices for international airlines flying to Phu Bai, Cam Ranh, Lien Khuong, Can Tho and Phu Quoc airports, with discounts of up to 50% on landing, takeoff and security screening services in up to three years.

The discounts were applicable to new airports which have handled a small number of international flights. As for Noi Bai and Tan Son Nhat airports, only special cases can enjoy service discounts.

In related news, the Ministry of Transport has permitted Thai Vietjet to continue operating flights between Lam Dong Province’s Dalat City and Bangkok of Thailand. The Ministry of National Defense earlier agreed on Thai Vietjet operating regular flights between Dalat and Bangkok to promote the province’s economy and tourism, attract investors, and stimulate trade between the two countries.

Dalat-Bangkok flights were operated between December 18, 2017 and March 24, 2018 with four flights per week using A320 and A321 aircraft.

Responsible investment under discussion at Da Nang seminar

Representatives of Vietnamese and Dutch enterprises operating in innovation and smart city development, water treatment and waste management in central Da Nang city gathered for a workshop on responsible investment  in the locality on May 25. 

Themed “responsible investment and smart urban development”, the event was jointly held by the municipal People’s Committee and the Dutch Consulate General in Ho Chi Minh City.

Vice Chairman of the municipal People’s Committee Ho Ky Minh said the event aims to promote cooperation in investment, smart city development and innovation between Da Nang and Dutch partners.

Da Nang has carefully prepared infrastructure and human resources, and policies to facilitate cooperation with Dutch partners, he noted. 

In 2017, the city recorded remarkable economic growth. Its gross regional domestic product and budget revenue respectively increased by 9 percent and 17.96 percent compared to the previous. The city’s foreign direct investment (FDI) inflow in the year was 6.6 times higher than 2016. Meanwhile the tourism sector saw strong development, with a year-on-year rise of 20.6 percent in total revenue.

According to Minh, the city officially launched its e-government system in 2014, which prove effective in managing and providing information to local people and enterprises. The model was expanded to many localities nationwide.

 From 2009 to 2016, the city led the country on the Vietnam ICT Index - the rankings on the readiness for information and communications technology development and application. It also won the first prize of ASEAN ICT Award 2016 on application of information technology and communication for the public sector. 

Carel Richter, Dutch Consul General to HCM City said people, enterprises, governments, scientists and investors worldwide are seeking solutions to the two global key trends of urbanization and climate change. 

According to him, Dutch businesses attach special importance to sustainable development and social responsibility, with many of them having developed revamped economic models that help minimise negative impacts on the environment.

Elmar Bouma from the Investment Promotion agency of the Netherlands said the country is advocating and facilitating responsible investment from enterprises.  

He stressed that factors that help build a quality investment environment include a stable legal system, good infrastructure, human resources and connection among educational institutions, of which the legal system is the most important. 

Representatives from Dutch enterprises highlighted contributions made by enterprises to sustainable development in their country.