Australian businesses study investment opportunities in Hau Giang

The Australian Chamber of Commerce in Việt Nam on Monday worked with Hậu Giang to study investment opportunities in the southern province.

Trương Cảnh Tuyên, deputy chairman of the provincial People’s Committee, said the province was attracting investments in high-tech agriculture and farm product processing.

Tuyên expressed hope that Australian firms would invest in these sectors.

Plantation makes up 70 per cent of the province’s agricultural production; 20 per cent is husbandry and 10 per cent is fishery.

In addition, the province also called for official development assistance for environment, climate change and healthcare services.

Further, the province will provide incentives in corporate income tax land use fees and import tax.

Phil Johns, director of Auscham Việt Nam, said the association wants to sign memoranda of understanding with Hậu Giang Province as a base to boost cooperation.

Hậu Giang Province has two industrial zones and four industrial clusters.

Germany’s Bosch group supports innovative startup in Vietnam

Bosch Group, a leading global supplier of technology and services headquartered in Germany, will send experts to evaluate and give consultancies to startup projects and join hands with the Saigon Innovation Hub (SiHub) to organise annual industrial technology startup contests.

To this effect, a Memorandum of Understanding was signed between SiHub and Bosch Vietnam in HCM City on June 27.

Bosch and SiHub will stand side by side with the startup community and new businesses to carry out smart projects on the foundation of the Internet of Things (IoT), which are suitable to Vietnamese conditions and meet Ho Chi Minh City’s development demand.

In addition, startup groups at SiHub will have opportunities to visit Bosch’s research and development (R&D) centres to study their working environment and technology capacity.

Consul General of Germany to Ho Chi Minh City Andreas Siegel said that the cooperation is a combination between Germany’s advanced technology capacity and the Vietnamese startup community’s innovation. 

This will start new development stage between Bosch and its Vietnamese partners, he stressed.

According to Huynh Kim Tuoc, SiHub Director, Ho Chi Minh City is targeting to become a smart city and enhance competitiveness of local enterprises to create new products.

The startup community plays a crucial role in realising the set target, he said, adding that this cooperation will help startup companies get access to Bosch’s technology to promote innovation and startup capacity.

The same day, Bosch Vietnam held an annual press conference and a conference to introduce connection solutions for smart city. 

Last year, Bosch Vietnam’s domestic sale revenue stood at 98.9 million USD in 2016, a year-on-year increase of 40 percent. The company earned over 223 million USD from exports.

General Director of Bosch Vietnam Vo Quang Hue said the company will spend additional 47 million USD on the construction of Bosh Gasoline Systems plant in Dong Nai province and enhance capacity of the R&D staff. It is diversifying products, especially those supporting connection solutions for smart city and Industry 4.0.

Forum seeks to unleash potential for sustainable economic growth

The Party Central Committee’s Economic Commission and the Australian Embassy held the Vietnam Economic Forum 2017 in Hanoi on June 27 under the theme “Unleashing the potential for sustainable economic growth”.

Chairman of the Economic Commission Nguyen Van Binh said Vietnam has made great strides in economic growth since the Doi moi (reform) process began in 1986. It has recorded an average annual growth rate of 6.4 percent since 2000, and reduced the poverty rate to under 3 percent from about 50 percent in the early 90s.

Up to 65 percent of Vietnam’s exports are products of the manufacturing and processing industries, but a majority of them are made by the FDI sector. Domestic enterprises mainly export such goods as textile-apparel, leather-footwear and agricultural products with modest added value. 

“That means an important contribution to Vietnam’s current growth rate comes from external resources, instead of the economy’s internal strength,” he noted.

Binh stressed that it’s high time to review the sustainability of the comparative advantages that Vietnam has usually mentioned such as an abundant and low-cost workforce while the golden population structure is forecast to exist for only another 10 years and the competition from other countries with lower production costs is increasing.

Briefing about the six-month economic situation, Deputy Minister of Planning and Investment Dang Huy Dong said the macro-economy remained stable with controlled inflation and the six-month average consumer price index rising about 4.2 percent year on year.

The GDP growth rate in the year’s first half could reach 5.5 – 5.7 percent, approximating the rate targeted by the Government, he noted, adding that the Government’s resolve to attain a growth rate of 6.7 percent this year is completely sound and reasonable.

“Although this task is very difficult, it is realisable if we are determined to implement all the set solutions,” Dong said, adding that once overcoming the difficulties and achieving the target, there will be a driving force and confidence to realise bigger aspirations in the long term.

A representative of the World Bank (WB) in Vietnam said Vietnam’s economy is stable while inflation is under control and the business climate and exchange rate remain steady. The country has also recorded credit and export growth, improved balance of payments and good liquidity.

The WB predicted Vietnam’s economic growth rate at some 6.3 percent in 2017, suggesting the country focus on carrying out trade supporting measures and free trade agreements to create better growth momentum.

At the forum, participants pointed out bottlenecks in the economy and proposed medium- and long-term solutions. They discussed the position of Vietnam’s economy in the global economic competition and the country’s untapped internal resources and economic restructuring.

The event saw the presence of Australian Ambassador to Vietnam Craig Chittick, representatives of central and local agencies, international organisations, businesses and research institutes, along with domestic and foreign experts.

First Can Tho – Bangkok direct flight takes off

The first direct flight from the Mekong Delta city of Can Tho to Bangkok, Thailand took off from Can Tho International Airport at 9:05 am on June 27, carrying 179 passengers.

It marked the launch of the first and only regular international service at the airport.

The 90-minute flight, using the 179-seat Airbus 320 aircraft, departs from Can Tho at 9:00 am and returns from Bangkok at 7:00 am the following day.

A two-way ticket on the route is sold at 4.8 million VND (211.2 USD) while the 5-day and 4-night holiday package in Thailand, including air tickets, is currently offered at 6.99 million VND (307.56 USD).

The next eight direct flights on the Can Tho – Bangkok route are scheduled for July 1, 5, 9, 13, 17, 21, 25 and 29.

Tran Tuong Huy, Director General of WorldTrans – the route’s operator, said the opening of the direct service is a breakthrough in air travel in the Mekong Delta, expecting it will open new opportunity for tourism industry in the two cities of Can Tho and Bangkok.

With this service, people from Can Tho and the Mekong Delta in general will no longer have to travel to HCM City by bus or car to take flights to Bangkok.

The Can Tho International Airport operates regular flights to some of Vietnam’s popular destinations, such as Hanoi, Da Nang, Phu Quoc and Con Dao while it occasionally, mostly during Tet holiday, serves international flights to Taiwan.

The WorldTrans plans to open more routes from Can Tho to other Asian nations in the future to meet the local rising demand.

Family businesses make significant contribution to GDP

Around 100 large household businesses in the country are contributing to a quarter of the country’s gross domestic product (GDP), the Việt Nam Chamber of Commerce and Industry (VCCI) said.

A large section of the private sector comprises family businesses, and their contribution demonstrates their pioneering role in boosting the post-crisis economic recovery, and nurtures the entrepreneurial spirit, playing an important role in the development of Việt Nam’s economy, Vũ Tiến Lộc, chairman of VCCI, told the Voice of Việt Nam (VOV) online newspaper.

Speaking at a meeting on “The Professionalisation of Household Businesses” on Saturday, Lộc said "family-owned enterprises are an important component that promotes the development of the private sector, helping form private economic groups that lead in many sectors and make a valuable contribution to the nation’s GDP".

“The advantage of Vietnamese household businesses is the trustworthiness and intimacy between family members, but it poses the challenge of balancing this relationship with the principles of corporate governance,” Lộc said.

In order to become even more successful, household businesses must work to change their mindsets, improve corporate governance and focus on strengthening human resources management.

Growing into some of the world’s largest and most reputable corporations is an important task for both the economy and the household businesses. To achieve it, there must be professional solutions to enhance the competitiveness of these types of businesses, Lộc said.

Vietsovpetro earns $18 million from Thiên Ứng gas field

Việt Nam-Russia Oil and Gas Joint Venture (Vietsovpetro) has exploited 54 million cubic metres of gas and 10,000 cubic metres of condensate gas, valued at US$18 million, from Thiên Ứng field.

Vietsovpetro began its drilling and perforation operations at Thiên Ứng gas field on December 6, 2016.

The figures were disclosed by the Việt Nam Oil and Gas Group (PVN).

The BK-TNG on the Thiên Ứng gas field rig belongs to Lot 04-3, assigned by the government to a group of contractors, including the PVN and Russia’s oil and gas group AO Zarubezhneft, with Vietsovpetro as the operator.

Thiên Ứng gas field was discovered in early 2009 through test well TU-3X. Success in finding natural gas in this field, following previous completed projects in the region, has opened up new opportunities for Vietsovpetro’s growth. 

Investors unpermitted to sell houses unless fully paying taxes, fees

The HCMC People’s Committee has required the Department of Construction to not solve housing project transfer procedures and not permit investors to sell their products if they have not fulfilled financial obligations to the state.

Specifically, those investors temporarily paying part of land use fee to get land use right certificate but not fully paying the fee and other land relevant taxes and fees will not be allowed to sell their products.

The committee also asked the Department of Natural Resources and Environment to notice the legal status of projects and some limitations to land user rights in case investors have not completed financial obligations. That aims to reduce risks in credit relations or other trades.

In fact, many investors have not done their financial responsibility but still offered apartments for sale and handed over apartments to buyers. Therefore, customers are ineligible for getting house ownership certificates.

According to current regulations, housing investors must complete all relevant financial obligations to sell products and get house ownership certificates from the Department of Natural Resources and Environment for their customers.

Techcombank to repurchase treasury stocks

The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has announced a resolution presented to its general meeting of shareholders approved the repurchase of treasury stocks and allowed the Hongkong and Shanghai Banking Corporation Limited (HBSC) to divest from the bank.

The repurchase will not cut charter capital. The number of shares is expected to be 221.95 million, or 25 per cent of the total number of outstanding Techcombank shares.

The price will not be lower than VND23,445 ($1.03) per share and will be the same for all shareholders involved in the repurchase. The bank will have to spend at least VND5.294 trillion ($232.80 million) buying shares.

Techcombank has also delayed plans to increase charter capital in 2017.

HSBC’s divestment from Techcombank, it will be conducted as a repurchase.

HSBC owns about 20 per cent of Techcombank and the transaction will be deployed through repurchasing treasury stocks of Techcombank, according to the Ho Chi Minh City Securities Company (HSC).

It purchased the Techcombank shares for VND60,891 ($2.67) per share. After that, Techcombank conducted profit sharing by issuing bonus shares and paying dividends from 2008 to 2010, causing the price to fall to VND26,000 ($1.14) per share.

From 2010, Techcombank has implemented a strategy of not paying dividends, to increase equity.

Can Tho tourism revenues up by 16%

In the first half of this year, the southern city of Can Tho reported tourism earnings of over VND1.12 trillion (over US$49 million), an increase of 16% year-on-year.

There were over 1 million visitors to the city, including over 140,000 foreign tourists, up 9% compared to the same period last year.

According to Director of the municipal Culture, Sports and Tourism Department Tran Viet Phuong, the city plans to promote tourism activities as well as diversify ecological, cultural and river tours to meet the demands of visitors.

The city will cooperate with the Mekong delta provinces of An Giang and Kien Giang to establish a “tourist triangle”, developing river, island and mountain tourism services.

Can Tho will also upgrade infrastructure in more than 20 eco-tourism parks covering an area of approximately 300 hectares, and develop models of environmentally-friendly tourism on Cai Rang and Phong Dien floating markets and at other tourist sites.

Can Tho city is located in a traffic junction linking the provinces in the region to Ho Chi Minh City and Cambodia. It is well known for its bird gardens, picturesque canals, Ninh Kieu wharf in Ninh Kieu district and Cai Rang floating market, the biggest fruit and agricultural wholesale market in the Mekong River delta.

The city is also famous for My Khanh tourist village where visitors can sample local fruits and admire various types of bonsai trees and animals such as birds, turtles, snakes, crabs and shrimp. It is home to historical and cultural relics including the Ong pagoda, Nam Nha pagoda and Binh Thuy temple.

Protecting property rights key to attracting private investment in agriculture

Protecting the property rights to artificial forests and cultivated aquatic animals is of the utmost importance to attracting private investment in aquaculture and forestry, a recent report on the Vietnamese economy has concluded.

The conclusion made by the Vietnam Institute for Economic and Policy Research (VEPR) has caught public attention at a time when the government is considering changes to the Law on Forest Protection and Development, and the Law on Fisheries.

However, the proposed amendments to the forest law lack clarity in forest ownership and transparency in the case of dividing and determining forest boundaries and forest inventory.

The Law on Fisheries is in a similar predicament when there remain fairly complicated regulations on business conditions and administrative procedures, according to the report.

It recommends that regulations on allocating, renting and retrieving water surfaces for aquaculture should be consistent with regulations of the Law on Land while the regulations for co-ownership of fishery resources should be fine-tuned.

Nguyen Minh Duc, a co-author of the VEPR’s report, states that from the view of investors, only when their property rights are protected firmly in the long term will they feel assured to invest in agriculture.

He said respecting the property rights of owners, including rights to dispose of the property when the owners withdraw from the market is one of many measures to help attract investment in agriculture.

In recent years, agriculture has received great attention from both the government and investors but the sector’s growth has been declining, with output expanding by only 1.2% in 2016.

Furthermore, the ratio of investment in agriculture to total investment also tends to decrease and land disputes are becoming more frequent and expanding in scale.

Meanwhile, agricultural production depends largely on natural resource inputs such as land, water, forests and fisheries, therefore regulations for managing such natural resources are crucial to attracting and encouraging investment in agriculture.

Vietnam-EAEU FTA opens Belarusian market for Vietnamese firms

A free trade agreement (FTA) between Vietnam and the Eurasian Economic Union (EAEU) and the Vietnam-Belarus protocol supporting the production of engine-powered vehicles in Vietnam is expected to bring about considerable changes in economic, trade and investment co-operation between Vietnam and Belarus.

The European Market Department under the Ministry of Industry and Trade (MoIT) noted that Vietnam and Belarus are enjoying a fruitful traditional friendship and multi-faceted co-operation.

Statistics showed that two-way trade revenue reached US$94.5 million in 2016 including US$2.5 million worth of Vietnam's export revenue and US$92 million of Vietnam's import revenue. In the first quarter of 2017, two-way trade was reported at US$37.7 million, including US$1.4 million worth of export revenue and US$36.3 million worth of import revenue.

Vietnam's main exports to Belarus include seafood, furniture, textiles, footwear, rice, natural rubber, cashew nuts, pepper, spices, tea, canned vegetables, pharmaceuticals, and computer.

Meanwhile, Vietnam's key imports from Belarus include fertilizers, machinery, equipment, spare parts for automobiles, tractors, trucks, and chemicals.

According to the MoIT's Import-Export Department, there are about 938 Vienamese enterprises exporting to Eurasia. Of which, about 200 enterprises report large revenue, accounting for 90% of the total export revenue in the areas of seafood, coffee, rubber, tea, rice, cashew nuts, pepper, textiles, footwear, and wood.

It is believed that the enhanced co-operation with the EAEU will open up significant opportunities for the export of Vietnamese products combined with many challenges due to fierce competition with products from EAEU itself.

At the recent meeting of Vietnam-Belarus Inter-Governmental Committee on Economic, Trade, Scientific and Technological Cooperation in Hanoi, Belarusian Deputy Prime Minister Vladimir Semashko was delighted at the expanded co-operation between Vietnam and Belarus in economy, trade and science-technology.

In particular, the effectiveness of the Vietnam - EAEU FTA has created favourable conditions for businesses of the two countries to enhance trade and investment co-operation.

Vietnamese Minister of Industry and Trade Tran Tuan Anh affirmed that the effectiveness of the Vietnam-EAEU FTA marks a turning point in the process of Vietnam's integration with large countries in the world.

To make full use of the agreement, businesses should strive to develop its new strategies and solutions to create high value products capable of competing with foreign partners and standing steady on the domestic market, Anh said.

Minister Anh noted that Vietnam and Belarus will continue to promote co-operation in trade, investment, industry, transport, education and training in order to bring the bilateral relations to a new level.

Viglacera not considering raising its FOL

Despite being one of the few State-owned enterprises (SOEs) belonging to the Ministry of Construction (MoC) to have undergone equitization, Viglacera Corp., the leading construction materials manufacturer in Vietnam, has not discussed raising its foreign ownership limit (FOL), which is currently at 49 per cent.

Since its equitization in 2014, Viglacera sold an additional 30 million shares, or 9.8 per cent, in its initial public offering (IPO) last July and subsequently issued another 12.5 million shares in an employee stock ownership plan (ESOP) a month later, which cut the State’s holding to 78.8 per cent from the previous 91.49 per cent.

In the latest move, it sold a further 39 per cent in a late-May public auction at an average price of VND16,175 ($0.7) per share, a 31.5 per cent premium on the starting price and bringing the State holding down to 56.7 per cent. A total of 1,026 investors subscribed for the issuance, with bids totaling 314.3 million shares for the 120 million on offer.

Ninety-two per cent, or 110 million shares, were sold to foreign investors, bringing the total number of foreign shareholders in Viglacera to 88, which together hold some 32 per cent, according to company data.

Among the keen foreign investors, Dragon Capital Group’s funds bought a total of 59.5 million shares out of the total 120 million shares on offer, subsequently raising its holding from 5.04 per cent to 17.56 per cent.

During the third quarter of this year, Viglacera plans to issue another round of ESOP shares, equal to a 5 per cent stake, with charter capital to increase from VND3.07 trillion ($135.1 million) to VND4.76 trillion ($209.5 million).

The State holding will therefore fall to about 54 per cent, with approximately 3 per cent left available under the FOL after the ESOP shares are issued. “As the remaining room is quite small, we are only thinking about conducting another round of ESOP after this year to eventually reduce the State ownership to 51 per cent by 2019,” Viglacera Deputy CEO Mr. Nguyen Anh Tuan told VET.

Once the shares have been issued and the ESOP added, using the share price on June 26 as a guide, its market cap should stand at some VND8.156 trillion ($358.6 million). Given decent daily liquidity in the stock and a high free float, this makes it a contender for the VN30 perhaps as soon as next year.

Whether or not Viglacera is in contention to be added to international indices for Vietnam also depends on whether the FOL remains in place. For now, “we have not discussed raising the FOL,” Mr. Tuan said.

Consisting of 40 member companies, including seven dependent units, 23 subsidiaries, and seven associates, Viglacera saw 2016 consolidated revenue rise by 4 per cent against 2015 to VND8.14 trillion ($358.2 million). After-tax profit of the parent company, meanwhile, reached an all-time high of VND440.8 billion ($19.4 million), up 79 per cent.

During the first three months of this year, Viglacera’s net profit rose VND97 billion ($4.3 million) year-on-year to VND243 billion ($10.7 million), 70 per cent higher than planned for the quarter. Significantly, the parent company alone saw net profit of VND184.1 billion ($8.1 million), 136 per cent higher than planned for the quarter and reaching 37 per cent of the annual plan, and an increase of VND88.3 billion ($3.9 million) year-on-year.

After the trading session on June 26, VGC shares closed at VND19,000 ($0.84), an increase of more than 17 per cent since the May 26 offering.

Economic forum opens as attendees call for fairer globalization

Vietnam Economic Forum 2017 opened in Hanoi today (June 27) as participants called for a fairer distribution of the benefits from globalization.

Under the theme of promoting inclusive and sustainable economic growth for all the population, the opening day of the forum attracted hundreds of attendees from across the country, including government heads and ministry officials, business leaders and experts.

Nguyen Van Binh, head of the Party Central Committee Commission for Economic Affairs said that the economy of the country is beginning to show positive signs of economic growth from globalization with the GDP per capita having pushed into the low middle-income ranks.

However, he cautioned, the economy is also facing certain challenges and risks as the benefits are not being shared inclusively by all the population, with tens of millions having received practically no benefit whatsoever.

The major challenges facing the Vietnam government today require it to take effective measures to improve national governance to achieve a fairer distribution of the benefits from globalization for all the population, thereby ensuring sustainable and balanced development, Mr Binh said.

economic forum opens as attendees call for fairer globalization hinh 1 During the opening ceremony, Craig Chittick, Australian Ambassador to Vietnam, also said that globalization and technology have expanded wealth in the country— while simultaneously widening the wealth gap among the population.

An upturn in the national economy or an increase in the GDP per capita does not solve all problems.

Fragility is everywhere. Population growth, rapid urbanization, food insecurity, water scarcity, and above all climate change are all challenges facing the Southeast Asian country.

That is why it is important to urge reforms in all sectors and find solutions to make globalization fairer, he added.

Various discussions on the global economy, scientific and technological research and development, of the national economic prospects will be held during the forum.

In addition, a string of contracts and agreements covering some wide-ranging sectors are expected to be announced during the event that will help expand international cooperation and collaboration.

Investors express interest in Hanoi metro system

Vingroup on June 25 signed a memorandum of understanding with Hanoi authorities worth nearly USD5 billion on building new metro lines in the capital city. 

Construction at the Nhon- Hanoi Station metro line.

This will be the first metro line to be built using private capital in the country.

The group has proposed investing in five out of six new metro lines introduced by the city.

On metro line 2, the group wants to invest in the Noi Bai - Nam Thang Long route. Vingroup also wanted to invest in the Hanoi Station - Hoang Mai and the Nhon - Troi Town - Son Tay Town routes in the metro line 3, and also in the metro lines 5, 6 and 8 which are all newly-planned.

According to Hanoi People Committee, besides Vingroup, there are also several other investors registering for these metro lines.

A report by the Hanoi People's Committee released earlier this year showed that the city would use a total investment of VND126.38 trillion (USD5.7 billion) during the 2017 - 2020 period including the state budget, ODA, PPP.

Hanoi chairman Nguyen Duc Chung told the media at that time that the city had received proposals from three big groups to invest in metro lines, including Lung Lo Construction Corporation, Vingroup and Xuan Thanh Group.

Speaking at the memorandum signing ceremony, Deputy PM Trinh Dinh Dung said that Hanoi should focus on developing and connecting satellite towns in order to reduce the burden for the city centre.

Dung also requested to speed up the construction of the Nhon-Hanoi Station and the Cat Linh-Ha Dong metro lines, as well as mobilising raising capital for the six new lines.

DBC plans to sell 55% capital in Dabaco Food

Việt Nam’s Dabaco Group (DBC) will transfer a part of its chartered capital in Dabaco Foodstuffs Processing Company Limited (Dabaco Food) to Kido Corporation (KDC) and DBC’s chairman of board Nguyễn Như So.

Dabaco Food has a chartered capital of VNĐ200 billion (US$8.8 million).  

50 per cent of said capital, equivalent to VNĐ100 billion, will be transferred to KDC, 5 per cent to Nguyễn Như So and the rest 45 per cent is held by DBC. 

After completing the procedure, Dabaco Food will be transformed into a joint stock company. 

Dabaco Food is specialising on slaughtering cattle and poultry and processing meat products, including sausage, smoked meat and canned food. 

FDI disbursement up in H1

Foreign direct investment (FDI) disbursement experienced a year-on-year increase of 6.5 per cent to US$7.72 billion in the first half of this year, statistics from the Foreign Investment Agency revealed.

Total FDI registered in the country in the period reached $19.22 billion, surging by a significant 54.8 per cent against the same period last year.

The processing and manufacturing sector attracted the lion share of FDI at $9.48 billion, accounting for 49.3 per cent of total FDI registered in the country. Electricity production and distribution ranked second with $5.25 billion or equivalent to 27 per cent, while the mining sector came third with $1.28 billion or 6.68 per cent.

Japan surpassed South Korea to become Việt Nam’s leading source of FDI in six months. Japanese investors pumped $5.08 billion into the country, making up 26.5 per cent of the total FDI. Investors from South Korea invested $4.95 billion, or 25.8 per cent, while those from Singapore poured $3.48 billion, or 18.1 per cent.

From January to June, the central province of Thanh Hóa was the most attractive destination for foreign investors as it attracted $3.06 billion in FDI, contributing to 15.9 per cent of the nation’s total FDI. It was followed by the northern provinces of Bắc Ninh and Nam Định with $2.85 billion or 14.83 per cent and $2.19 billion or 11.4 per cent, respectively.

Foreign-invested sector accounted for 71 per cent of the country’s total six-month export turnover. The sector also recorded trade surplus of $10.22 billion in the period. 

As of June 20, 2017, the country is home to more than 23,590 valid foreign-invested projects with a total registered capital of $306.3 billion. Over half of the total has been disbursed, according to the agency. 

HCM City exports up in H1

The southern economic hub of HCM City generated US$17 billion from exports in the first half of this year, surging 17.4 per cent against the same period last year.

The increase was thanks to the positive influence of support policies and effective trade promotion.

State-owned enterprises made up 37.9 per cent of the total, up 2.2 per cent year-on-year, while foreign-invested firms accounted for 62.1 per cent, up 34.9 per cent, according to the municipal Department of Industry and Trade.

The city’s exports have recovered and recorded positive increases since the beginning of this year, department director Phạm Thành Kiên said.

Kiên cited yearly increases of 10.6 per cent and 17.1 per cent, seen in the first three months and first five months of this year, respectively, as appropriate examples.

Export items posting turnover growth in H1 included computers, electronics and components with 58.9 per cent, footwear with 8.5 per cent and textile and garment with 2.1 per cent, respectively.

Vietnam Airlines’s subsidiaries receive international awards

Noi Bai Cargo Terminal Services (NCTS) JSC and Vietnam Airport Ground Services (VIAGS) Co., Ltd, both national flag carrier Vietnam Airlines’ subsidiaries, received awards from Singapore Airlines for their excellent service for Singapore Airlines’ flights to and from Noi Bai International Airport.

Among companies that service Singapore Airlines flights, NCTS was ranked second in catering service quality while VIAGS was granted best service quality from the airline. The awards were based on assessments from Singapore Airlines’ passengers from April 2016 to March 2017. 

The two companies currently service seven round trip flights of Singapore Airlines to and from Hanoi per week.

The NCTS provides services for 23 airlines and aims to become a leading service supplier in Southeast Asia. The company was also praised by the Qatar Civil Aviation Authority and other partners for its quality service.

VIAGS is Vietnam’s first business that offers comprehensive ground services meeting international standards at Noi Bai International Airport, Da Nang International Airport and Tan Son Nhat International Airport.

The Vietnamese ground handler has completed the first stages of assessment to receive the International Air Transport Association safety audit for Ground Operations certification.

The international air transport rating organisation Skytrax recently placed Vietnam Airlines 14th among 20 carriers offering the world’s best premium economy class experience.

Paper imports from France see sharp rise

Paper imports from France skyrocketed 229.1% in volume to 316 tons and 659% in value to US$1.1 million in the first five months of this year, according to the General Department of Vietnam Customs.

The Department reported that after seeing a decline in April, the total imports of different types of paper began to rise in May, jumping 13.3% to 176,600 tons with value increasing 13.7% to US$150.6 million. This brings the total export volume in five months to 812,000 tons valuing US$676.7 million, up 12.44% and 17.28%, respectively against the same period last year.

Most of the imported paper was from China, accounting for 22% of the total imports with 173,200 tons worth US$129.5 million. Taiwan came second with 119,800 tons (US$67.5 million) and Indonesia with 115,400 tons (US$81.44 million).

The country also bought paper from the Republic of Korea, Thailand, Japan, Malaysia and Singapore.

Agri-tech zone plants seeds of investment

Agri-tech has been a long-term development target of the central province of Phu Yen. Since a high-tech agricultural zone was proposed for the province in 2013, Phu Yen has focused mainly on developing infrastructure for investment projects in the field.

Over the past few years, local authorities have thoroughly studied and developed the proposal to establish the Phu Yen High-Tech Application Agricultural Zone (HTAAZ). In this work they have given special attention to boosting socio-economic growth and agricultural restructuring towards the enhancement of sustainability and value-added production.

Accordingly, basic requirements for proposals have been produced to develop a chain of agricultural production with high-tech applications, enhancing the competitiveness of the sector as it becomes increasingly integrated with the world.

When investing in HTAAZ, both local and foreign investors will enjoy many preferential policies and a good deal of investment support, such as free land use. They will also benefit from preferential corporate income tax and import and export duties.

According to Ngo Dinh Thien, deputy director of the Management Board of HTAAZ, the zone is for studying and applying new technologies into agricultural production. The zone will be developed with support and investment from science and technology organisations and other enterprises in order to produce high value-added agricultural products with high quality and yield.

Recently, to give HTAAZ a lift in realising its mission, Phu Yen issued a resolution to mobilise more resources for infrastructure development and investment attraction, with a vision to 2020. The resolution specifically aims to build a more synchronous technology system and attract more national and international funds, human resources, and high technologies to be used in local agricultural development.

Though ground on the zone was only broken in late 2016, some of its basic infrastructure has already been completed. To date, the zone has attracted seven investment projects. Of these, four projects are in operation - the Taiwanese firm Kuan-Lien Agricultural Development Co., Ltd’s high-tech agricultural zone, Dong Loi Clean Chicken Raising Co., Ltd’s industrial chicken farm, an experimental biology laboratory of the Technology Application and Transfer Center under the Phu Yen Department of Science and Technology, and Son Ngoc Co-operative Group’s fruit farm. The remaining projects are completing investment procedures.

Owing to the consistent promotion and careful preparation of HTAAZ, Phu Yen is expected to receive a great number of investors working in the production and processing of agricultural products in the near future.

According to the Phu Yen People’s Committee, between now and 2020, HTAAZ is expected to attract the total investment capital of more than VND520 billion ($22.6 million) to build a 12 kilometre-long irrigation system called Lo Chai 1. A 4-km main road, lighting system, waste treatment system, office building, and other supplementary infrastructure units will soon be constructed in the zone.

Deputy Chairman of the Phu Yen People’s Committee Tran Huu The said that the committee has announced its master plan for HTAAZ. Accordingly, investors will be fully informed, enhancing investment attraction and boosting high-tech applications into local agricultural production.

The has also asked the Management Board of HTAAZ to closely co-operate with relevant agencies to announce the master plan of the zone in a matter of time, as well as produce a detailed plan of the zone to effectively call for investment. 

VNG targets 35 per cent growth in pre-tax profit in 2017

According to the resolution of the annual shareholders’ meeting of major Vietnamese information technology company VNG Corporation passed last week, it has set a target revenue of VND3.96 trillion ($174 million), up 31 per cent over the previous year, and profit before tax of VND908 billion ($40 million), up 34.7 per cent.

Representatives of VNG and Nasdaq at the signing ceremony of the listing agreement in May

In 2017 and in the coming years, VNG continues its "go global" strategy, developing its core businesses, extending and developing the Zalo application and online payment services.

According to Le Hong Minh, chairman and CEO of VNG, gaming will still be the main sector which brings the brunt of VNG’s revenue. In addition, a sector which it expects to bring high revenue growth in 2017 could be online advertising.

From the beginning of 2016, VNG Corporation (VNG) has started to promote the "go global" strategy by bringing its products, such as Zalo, Sky Garden, and Dead Target, to overseas markets.

Zalo is an OTT application developed by VNG that entered Myanmar in the middle of last year and quickly reached 2 million users within 4 months.

Currently, the VNG office in Singapore begins plans to build a data centre to provide VNG services to end-users in the ASEAN market. The VNG office in Thailand is also undergoing an overall restructuring to welcome new staff and continue to develop this market.

This plan has produced many outstanding achievements on the international playing field, boosting VNG’s confidence to take on a new challenge, aiming to become a global enterprise from the year 2017.

According to Minh, in order to achieve this goal, VNG should first be listed on NASDAQ (US), which can be considered a standard for accessing an enterprise. NASDAQ is the stock exchange of technology companies around the globe. To be listed, the company must adapt strict standards of business, finance, and corporate administration, among others.

May 30, 2017 marked a milestone for VNG, as the company signed an agreement to be listed on NASDAQ. This event was held during the official three-day visit of Prime Minister Nguyen Xuan Phuc to the US during May 29-31, 2017.

Robert H. McCoy, Jr., vice president of NASDAQ’s Listing Services, said NASDAQ was impressed with VNG’s business achievements and believed that after being listed, the company would become a bright spot of a startup model in Vietnam and attract more interest from the global finance market.

First Vietnamese private firm to join Hanoi metro projects

Vietnamese property conglomerate Vingroup will pour around VND100 trillion ($4.55 billion) into metro line projects in Hanoi, becoming the first private domestic firm to join the field.

At the “Hanoi 2017 – Investment and Development Co-operation” conference held on June 25, 2017, Vingroup signed a Memorandum of Understanding (MoU) with Hanoi authorities to develop metro lines in the city in the coming time to meet the growing local demand for transportation.

This was one among the 15 MoUs signed at the event between Hanoi and domestic and foreign investors.

Vingroup proposed to invest in a number of metro routes. For Line 2 (South Thang Long-Tran Hung Dao), the firm wants to join the Noi Bai-Nam Thang Long section, while at Line 3 (Nhon-Hanoi Station), it is eager to join Hanoi Station-Hoang Mai and Nhon-Troi-Son Tay sections.

The other routes of Vingroup’s interest include Van Cao-Beltway 4 and Beltway 4-Hoa Lac of Line 5; Noi Bai-Phu Dien-Ha Dong-Ngoc Hoi of Line 6; and Son Dong-Mai Dich and Mai Dich-Beltway 3-Duong Xa of Line 8.

Earlier this year, Hanoi said that LUNGLO Construction Corporation, Vingroup, and Xuan Thanh Group proposed to join the development of metro lines in the city.

Currently, the city’s two metro projects, namely Cat Linh-Hadong and Nhon-Hanoi Station, are being developed by foreign contractors. However, the constructions are behind schedule, driving up investment capital.

Under the prime minister-approved transport development plan by 2030, with a vision towards 2050, Hanoi will build nine metro lines with a total length of 372.5 kilometres and an estimated total investment capital sum of VND700 trillion ($31.8 billion).

VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET