Vietnamese organic products to be displayed at ThaiFex 2018
Some 30 Vietnamese food and beverage producers will showcase their organic products and others at ThaiFex – World of Food Asia 2018, the international food and beverage trade fair held in Bangkok, Thailand from May 29 – June 2.
Participating companies include Vinamit JSC; Ben Tre Import-Export JSC; Trung Nguyen Group; VinEco Agricultural Investment, Development and Productions LLC; Lai Phu JSC; Thuan Thien Thanh Food Investment and Development JSC; Co May Co Ltd; Bibica JSC; and Petrolimex Import-Export JSC.
The Vietnamese pavilion has an “organic and natural village” with organic products like desiccated fruits, rice, processed coconut and milk, alongside products with geographical indication like Phu Quoc fish sauce, Binh Thuan dragon fruits, Binh Phuoc cashew nuts, Ben Tre Xiem coconuts and grapefruits and natural products like Dong Thap lotus on display.
The Vietnamese delegation will run networking programmes between Vietnamese and ASEAN firms. There will be also a seminar with Vietnamese and foreign speakers discussing the potential of the ASEAN market and sharing their experience in developing and commercialising products with geographical indication.
Organised by Koelnmesse Pte Ltd, Thailand’s Department of International Trade Promotion and the Thai Chamber of Commerce, Thaifex is set to draw more than 2,500 exhibitors from some 40 countries and territories.
The fair can help connect visitors with exhibitors, thus improving competitiveness of firms for their operation in the global market.
Ha Long city expects investment wave in Boutique shophouses
The increasing numbers of visitor to northeastern Quang Ninh province’s Ha Long city in recent years creates excellent opportunities for investment deals, especially in boutique shophouses – a real estate model combining mini hotels and shophouses.
Bai Chay, a tourism zone in Ha Long, is attracting real estate investors due to its clean and beautiful beaches. It is home to the Sun World entertainment complex and the hi-end Sun Premier Village resort.
With a floor area of 100 square metres, a shophouse is only suitable for opening a restaurant, café or clothes shop.
Meanwhile, a boutique shophouse with more floor area is multi-functional and can be utilised as mini hotels, bars, leisure facilities, restaurants, spa or beauty salons.
Another plus point of boutique shophouses are their prime location along the Ha Long road and special design for commercial small hotels.
With an area of 632-900 square meters, each boutique shophouse can have up to 21 rooms, allowing owners to enter the mini hotel business without additional renovation costs.
Owners of boutique shophouses will also get long-term ownership certificates.
The boutique hotel and shophouse model emerged in the 1990s in major cities around the world, including Paris, London, New York and San Francisco, and has flourished in Asian tourist resorts in the 2000s.
It is fast becoming an attractive investment option in Vietnam even though it has only emerged in the country in recent years.
With stunning landscapes, clear turquoise sea and spectacular limestone pillars together with tourism investment projects, Quang Ninh boasts huge potential to develop tourism.
The province has a coastline of more than 250 kilometres and 2,000 islets, two-thirds of the total in Vietnam. The spectacular stretch of coast connects the UNESCO-recognised World Heritage Site of Ha Long Bay with majestic natural scenery, Bai Tu Long Bay, Van Don and Co To islands and Tra Co beach with Cat Ba National Park in the northern port city of Hai Phong.
Along with the renowned Ha Long Bay, Quan Lan, Minh Chau, Ngoc Vung, Dai beaches and in Van Don island district and Tra Co and Vinh Thuc in Mong Cai city have grown in stature among tourists thanks to their breathtaking sea and coral reef.
In 2017, Quang Ninh welcomed almost 10 million tourists, over 4 million of whom were foreigners. The province aims to attract more than 12 million visitors this year, including 5 million foreigners.
By 2020, Quang Ninh aims to welcome between 15-16 million tourists, including 7 million foreigners, and rake in 30-40 trillion VND (1.3-1.7 billion USD) in revenue. The tourism sector is expected to contribute 14-15 percent to the gross regional domestic product.
ROK-funded project to foster energy efficiency in Vietnam’s industry
The Republic of Korea’s government will provide 1.9 million USD in financial aid for a project promoting energy saving in Vietnam’s industrial sector.
The project “Promoting Investment Market for Energy Efficiency in Industrial Sector in Vietnam” was launched by the Ministry of Industry and Trade’s Department of Energy Saving and Sustainable Development and the Korea International Cooperation Agency (KOICA) last week.
The project is part of the World Bank-funded “Vietnam Energy Efficiency for Industrial Enterprises (VEEIE)” project that offers 101.7 million USD to give domestic industrial enterprises better access to loans for energy efficiency investment.
The financing provided by the WB includes two components – 100 million USD used on developing energy-saving projects for key industries and 1.7 million USD spent on technical assistance for those projects.
The WB project aims to foster the development of energy service companies and to facilitate the implementation of energy saving and energy efficiency projects. It will aid the country’s efforts to reduce greenhouse gas emissions and protect the environment.
ASEAN+3 economies enhance connectivity
Economies in the ASEAN+3 region should enhance their connectivity, boost the service sector and develop skilled human resources in order to meet global demand, participants were told during a seminar held in Ha Noi on May 25.
The seminar, themed “ASEAN+3 regional economic outlook: resilience and growth in a changing world” was jointly held by the Vietnamese Ministry of Finance and the ASEAN+3 Macroeconomic Research Office (AMRO).
ASEAN+3 comprises ten member countries of the Association of Southeast Asian Nations (ASEAN), and China, Japan and the Republic of Korea (RoK).
The ASEAN group comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam.
Hoe Eo Khor, chief economist of AMRO, presented a report on the ASEAN+3 regional economic outlook conducted by his office.
According to the report, with improving external demand, the region’s growth is expected to be maintained at 5.4 per cent in 2018 and 5.2 per cent in 2019.
Viet Nam’s GDP in the first quarter of this year is projected at 7.4 per cent. However, the report warned the region to remain vigilant given the significant external risks in the short term of a faster-than-expected tightening in global financial conditions and an escalation of global trade tensions.
If these risks are realised, there would be spillovers to the region through capital outflows, higher borrowing costs, and lower trade and investment flows, the report said.
To enhance resilience, the report said policymakers in the region should continue to build policy space, particularly in monetary policy, in anticipation of tighter global financial conditions ahead. Fiscal policy may have to play a greater role in supporting growth while macro-prudential policy can help safeguard financial stability, the report said.
Nguyen Duc Thanh, Director of the Viet Nam Institute for Economic and Policy Research (VEPR) said through the report, Viet Nam gets an insight into ASEAN and the Northeast Asian countries - China, Japan and the RoK. Delegates at the seminar held that regional economies have benefited from foreign direct investment (FDI) activities which look towards exports.
Along with China and other major ASEAN economies, Viet Nam has succeeded in attracting FDI, setting up competitive production areas, generating jobs, increasing productivity and spurring exports, they said.
They also pointed out challenges caused by trade protectionism, changes in the global value chains and new trends of technologies and production.
Against the backdrop, the economies should intensify regional connectivity and integration to consolidate sustainable growth against external shocks, they suggested.
Banks cut interest rate for short-term deposits
Many banks have reduced the interest rate for short-term deposits while raising the rate for long-term deposits to restructure capital sources.
BIDV has applied the new rates from May 22, lowering its annual interest rate for three-month and six-month deposits by 0.2 percentage points. Accordingly, the rates for these months are listed at 4.6 per cent and 5.1 per cent per year, respectively.
The bank, however, has maintained a high interest rate of 6.9 per cent per year for 12-month and 24-month deposits.
LienVietPostBank has also lowered the rate for short-term deposits, listing one-month, three-month and sixth-month rates at only 4.4 per cent, 5 per cent and 5.8 per cent per year, respectively.
Vietinbank has followed suit, quoting the interest rate for under-three-month deposits at 4.1 per cent. The bank’s rate for four-month and five-month deposits is 4.6 per cent, while it is 5.1 per cent for six-month deposits.
It has kept the interest rate at 5.5 per cent for six-month to 11-month deposits, much lower than the 6.8 per cent applied to 12-month deposits and 7 per cent for 36-month deposits.
Eximbank has also kept a low rate of 4.6 to 5 per cent for deposits under six months since May 21. However, the bank has increased the rate for long-term loans with 6.8 per cent per year for 12-month deposits and 8 per cent for 24-month and 36-month deposits.
According to the National Financial Supervisory Commission, capital mobilisation of the banking system in the first quarter of this year rose by 3 per cent against 2.6 per cent in the first quarter of 2017.
Credit institutions hope the average mobilisation growth in the second quarter (Q2) of this year will be some 4.71 per cent, much higher than Q1, and the annual mobilisation growth will reach some 16.65 per cent, equivalent to the levels of 2016 and 2017.
Credit institutions also expect deposits ranging from six months to one year to account for 83-86 per cent of the total mobilisation in Q2 and throughout 2018.
On the inter-bank market, interest rates for overnight and one-week loans this week inched up by 0.01 percentage points against the previous week while decreasing by 0.01-0.03 percentage points for two-week and one-month loans.
Vietjet shareholders get dividend of 10%
Vietjet Aviation on Friday spent VND451 billion (nearly US$20 million) to pay a dividend of 10 per cent by cash to its shareholders.
Consequently, the budget airline has finished its 2017 dividend payment of 40 per cent in cash, the company said in a statement.
Earlier this month, Vietjet announced it would pay 2017’s dividend of 20 per cent by shares. In 2018, the company approved a dividend payment plan by 50 per cent.
Over the years, Vietjet has regularly paid high dividends to its shareholders.
In the first quarter of this year, Vietjet continued to grow. Specifically, revenue stood at VND12.56 trillion, up 146 per cent year on year thanks to the growth in passenger air transport, ancillary and sale and leaseback revenue.
Profit after tax of the parent company’s shareholders stood at approximately VND1.37 billion, a yearly rise of 263 per cent. Earnings per share in this quarter was VND3,026, one of the highest figures in the stock market.
Compared to the yearly target of VND50.97 trillion in revenue and VND5.8 trillion in pre-tax profit, the first quarter’s results achieved 25.5 per cent of the year’s target.
Huge opportunities in VN for business acquisitions: seminar
There are huge opportunities across ASEAN for mergers and acquisitions in almost every sector, particularly in Viet Nam, though challenges remain like regulatory hassles and how to add value to companies after inking an deal, experts told a seminar on M&A in HCM City on Friday.
M&A activities are increasing across Southeast Asia, capitalising on the investment boom in the emerging markets in the region, Theng Bee Han, president of the Malaysia Business Chamber Viet Nam, said.
There were a lot of M&A activities in Viet Nam last year, particularly in the real estate sector where transactions amounted to nearly US$1.5 billion, he said.
The deals involved major players from Japan, South Korea, Malaysia, Singapore and mainland China, he added.
“Viet Nam, Malaysia and [generally] ASEAN’s wider integration with the global economy offers many new opportunities for M&A.”
Ralf Pilarczyk, head of M&A for ASEAN, Standard Chartered Bank, said last year there were over 4,200 global cross-border M&A transactions valued at over $100 million and they were totally worth $5.1 trillion.
North America and Europe accounted for 76 per cent of the global deals (by value) and the Asia Pacific for 18 per cent, driven by China.
ASEAN accounts for 9 per cent of the world’s population and 2 per cent of global M&A. The bloc saw 116 deals worth $78 billion last year, including four deals in Viet Nam valued at $6 billion.
Research by Pilarczyk and Tina Tejwaney, an M&A expert from his bank, found that some of the main drivers for Viet Nam’s M&A deals are its market size with more than 90 million people, strong growth prospects and the Government’s strong efforts to push for State firms’ equitisation.
“Privatisation is an extraordinary programme,” Pilarczyk said.
It provides tremendous opportunities for foreign investors to buy into the Vietnamese economy across various sectors, and Viet Nam would have huge opportunities to develop its capital market and attract foreign investment, he said.
But the country needs to adjust its regulatory framework in the next few years to engage foreign investors better in accessing information and negotiating deals before they invest.
"Bridging ASEAN" was hosted by Standard Chartered Bank in collaboration with the Malaysian Business Chamber Viet Nam and Singapore Business Group.
The seminar attracted more than 100 business executives from Viet Nam and other countries. The bank held a bridging event last May.
HCM City to hold Industry and Trade Promotion Fair
The 2018 HCM City Industry and Trade Promotion Fair will be held from July 24 to 29 at District 11’s Phu Tho Stadium, according to the city’s Department of Industry and Trade.
The fair aims to attract 300 businesses and 450 booths, and will organise several events to help businesses promote their brands and products.
A wide range of businesses will take part in the event, including companies in food and beverages, clothing, technologies, shoes, accessories and supporting industries.
The fair plays an important role in improving firms’competitiveness and brand promotion and the reputation of Vietnamese goods, according to Hoang Tho Vuong, director of the HCM City Centre for Supporting Industries Development.
The fair also helps businesses find potential partners and increase exports.
Vietnam’s airlines blame high jet fuel price for pricey airfare
No Vietnamese air carriers were able to make it to the world’s top 50 cheapest airlines, with industry insiders saying they have the domestic high jet fuel prices to blame for their inability to offer really reasonable tickets.
Rome2rio, a leading travel planning platform, has recently published its third Global Flight Pricing report, which ranks the best value airlines for travelers based on the average cost per kilometer, after analyzing over 1.5 million economy-class prices from 200 airlines in the first two months of 2018.
Tigerair from Australia led the list with an average cost per kilometer of US$0.06, followed by Malaysia’s AirAsiaX with $0.07, and AirAsia of Indonesia with US$0.08. Jetstar, a member of Australia’s Qantas Group, ranked fourth with US$0.09.
Six carriers, including the second-largest airline of the United Arab Emirates – Etihad, Indonesia’s Citilink, Iceland's only high performance low-cost airline WOW Air, Oman Air, Indonesian Lion Mentari Airlines and Ryanair from Ireland, closely came after with the same average cost per kilometer of US$0.1.
In the meantime, all three major Vietnamese carriers, Vietnam Airlines, Viejet and Jetstar Pacific, failed to make it to the top 50.
No-frills Vietjet charges its passengers an average of US$0.14 per kilometer, compared to US$0.15 of its low-cost peer Jetstar Pacific.
National flag carrier Vietnam Airlines had a much higher cost per kilometer ratio, $0.3.
While the three are absent from the Rome2rio list based on the average cost per kilometer ratio, Vietnam ranked 15th in terms of average ticket price by country.
A representative of a Vietnamese airline said that jet fuel is much more expensive in Vietnam than in other countries, resulting in higher airfares, given the fact that fuel accounts for 30%-40% of the total operating costs of a carrier.
“The jet fuel price in Vietnam is 20%-30% higher than in other regional countries,” he told Tuoi Tre (Youth) newspaper.
At its latest shareholders’ meeting, Vietnam Airlines announced that fuel makes up 24-38 percent of the company’s expenses.
Even a one-dollar rise in oil price will lift the cost of the national flag carrier by about VND230 billion (US$10.12 million) a year, according to Vietnam Airlines.
Binh Dinh province calls for RoK investment
The central province of Binh Dinh introduced its potential and advantages to businesses of the Republic of Korea (RoK) on May 28 with a view to attracting investment from this Northeast Asian nation.
The conference to promote the RoK’s investment in Binh Dinh was held at the headquarters of the Korea Industrial Technology Association in Seoul, drawing representatives of about 100 Korean businesses.
Chairman of the Binh Dinh People’s Committee Ho Quoc Dung said the potential and advantages of his province match RoK investors’ investment and business demand. It also shares cultural similarities with the RoK. Therefore, Binh Dinh has chosen the RoK, a dynamic and developed economy, to be the next step in its investment attraction plan.
He called on RoK firms to invest in the fields Binh Dinh has demand for such as electronic component production, seaport and industrial park infrastructure, energy, tourism, and fisheries.
He affirmed that all economic sectors are treated equally, and every enterprise is provided with favourable conditions in accessing information about policies, mechanisms, planning, and investment and business opportunities in Binh Dinh, a Vietnamese central coastal province full of potential and hospitality.
On this occasion, the official also asked the participants to help his province popularise its potential and advantages to their friends, colleagues and other RoK investors.
At the conference, Vietnamese Ambassador to the RoK Nguyen Vu Tu said the Vietnam-RoK strategic cooperative partnership is flourishing in all spheres.
The RoK is currently the biggest investor in Vietnam with total investment capital of more than 58 billion USD through last April. Bilateral trade surpassed 60 billion USD in 2017, making the RoK the second largest trade partner of Vietnam and Vietnam the fourth largest trade partner of the Northeast Asian nation.
He noted that the fine political relationship and close people-to-people ties are the factors helping to ensure bilateral economic cooperation.
In 2017, Vietnam welcomed 2.5 million RoK tourists while the number of Vietnamese visitors to the RoK grew by over 70 percent. Each country has more than 150,000 citizens living in the other nation at present, Tu added.
Australia-Vietnam forum increases capacity for female entrepreneurs
The Australia – Vietnam Capacity Building Forum for Women Entrepreneurs in Agrifood Business opened in Sydney on May 28, offering a chance for Vietnamese female entrepreneurs to have creative thinking and gain closer access to international standards.
In his opening remarks, Vice-Chancellor and President of Western Sydney University Barney Glover said that Australia is one of the most reliable suppliers of high-quality agrifood in the world.
Two-thirds of Australia’s exported farm produce are shipped to Asia, so it is essential for the country to build a business network of agricultural products.
He stressed the need to boost trade ties between Australia and Vietnam as the Southeast Asian nation is emerging as a new and potential market. The two countries’ agrifood holds numerous similarities and can supplement each other.
Trinh Duc Hai, Vietnamese Consul General in New South Wales state, shared that the Vietnamese female entrepreneur community is expanding. Currently, 30 percent of the total Vietnamese enterprises are owned by women.
The Vietnamese Government always supports the community with the aim of raising the proportion to 50 percent by 2020, Hai added.
The Australia – Vietnam Capacity Building Forum is scheduled to take place until June 1. It aims to create opportunities for Vietnamese female entrepreneurs to update information on issues related to improving the competitiveness of enterprises in the market of agricultural production and processing, and understanding the current situation and demand for agricultural products in Australia.
The forum, jointly held by Western Sydney University, Australia – ASEAN Council, and Ho Chi Minh City’s University of Economics, is also a chance for Vietnamese and Australian businesswomen to share their experiences on innovative solutions in preserving and processing agricultural products.
Four criteria for high-tech agricultural firms
Hanoi attracts 860 million USD in FDI in five months
The capital city of Hanoi attracted 860 million USD in foreign direct investment (FDI) in the first five months of 2018, said Director of the municipal Department of Planning and Investment Nguyen Manh Quyen.
Of the amount, 529.2 million USD was registered to invest in 225 new projects, over 131 million USD was added to 48 existing projects and 199.52 million USD was invested in domestic companies’ stakes.
Quyen said the city has carried out 27 non-state capital projects with combined investment of 27 trillion VND (1.19 billion USD). In addition, 13 projects were permitted to increase investment capital by 1.98 trillion VND (87.2 million USD).
In the first five months of 2018, Hanoi approved another public-private partnership (PPP) project with investment of almost 1.41 trillion VND (62.1 million USD), bringing the total number of PPP projects to 12 with total investment of more than 28.33 trillion VND (1.24 billion USD).
During the reviewed period, 9,420 businesses were established in the city, with combined registered capital of 97.5 trillion VND (4.29 billion USD), down 1 percent in the number but up 36 percent in the volume of investment. The figure raised the total number of enterprises in Hanoi to 241,000.
Last year, the capital city drew up to 3.4 billion USD in FDI.
Workshop discusses application of int’l financial reporting standards
Experience in applying International Financial Reporting Standards (IFRS) from Japan, the Republic of Korea (RoK), the US, Malaysia and China was shared at a workshop in Hanoi on May 28.
Jointly organised by the Ministry of Finance and the Japan International Cooperation Agency (JICA), the event also aimed to collect comments on the draft project on application of IFRS in Vietnam, thus rolling out orientation for the process in the country.
Vu Duc Chinh, Director of the Accounting and Auditing Policies Department (AAPD) under the Ministry of Finance, said in the strategy until 2020, Vietnam’s accounting and auditing sector will approach international practices.
Over the past 10 years, Vietnam issued 26 accounting standards, but they have exposed many shortcomings, requiring the Ministry of Finance to build a new standard system, he said.
However, the application of IFRS should be suitable to Vietnam’s condition as the country has many stakeholders in the accounting system because of different types of businesses, Chinh noted.
The Ministry of Finance will gradually build a set of financial reporting standards and issue or recognise an international standard system.
It is necessary to develop a system of accounting standards similar to the system of 26 standards to apply to other subjects, and manuals on the principles of financial reporting, he said.
The application of IFRS means that the accounting and auditing system will have a common "language" for all businesses in all countries in the world, and this will be very beneficial when Vietnamese enterprises participate in the international capital market, Chinh noted.
Trinh Duc Vinh, Vice Director of AAPD, said the application of IFRS in Vietnam is to overcome the limitations of the Vietnamese Accounting Standards System (VAS), perfect the legal framework on accounting, and increase the transparency of financial information.
This also aims to promote the accountability of businesses, helping Vietnamese businesses access more capital sources and list on the international market, so that Vietnam is internationally recognised as a full market economy, he added.
Sekiguchi Tomokazu from KPMG Vietnam - the provider of audit services said the roadmap for the application of IFRS (or equivalent standards) in each country is different, stressing the need to make thorough plans before application.
Tran Anh Quan, Vice Director of KPMG Vietnam, noted that the application of IFRS is a great challenge to any countries, even developed ones.
Vietnam is a country with low starting point for economic development, so the application of IFRS is more difficult, he said.
Representatives from JICA said the application of IFRS is very important and the agency can provide financial and technical assistance for Vietnam as well as share Japan’s experience in the work.
Workshop discusses application of int’l financial reporting standards
Experience in applying International Financial Reporting Standards (IFRS) from Japan, the Republic of Korea (RoK), the US, Malaysia and China was shared at a workshop in Hanoi on May 28.
Jointly organised by the Ministry of Finance and the Japan International Cooperation Agency (JICA), the event also aimed to collect comments on the draft project on application of IFRS in Vietnam, thus rolling out orientation for the process in the country.
Vu Duc Chinh, Director of the Accounting and Auditing Policies Department (AAPD) under the Ministry of Finance, said in the strategy until 2020, Vietnam’s accounting and auditing sector will approach international practices.
Over the past 10 years, Vietnam issued 26 accounting standards, but they have exposed many shortcomings, requiring the Ministry of Finance to build a new standard system, he said.
However, the application of IFRS should be suitable to Vietnam’s condition as the country has many stakeholders in the accounting system because of different types of businesses, Chinh noted.
The Ministry of Finance will gradually build a set of financial reporting standards and issue or recognise an international standard system.
It is necessary to develop a system of accounting standards similar to the system of 26 standards to apply to other subjects, and manuals on the principles of financial reporting, he said.
The application of IFRS means that the accounting and auditing system will have a common "language" for all businesses in all countries in the world, and this will be very beneficial when Vietnamese enterprises participate in the international capital market, Chinh noted.
Trinh Duc Vinh, Vice Director of AAPD, said the application of IFRS in Vietnam is to overcome the limitations of the Vietnamese Accounting Standards System (VAS), perfect the legal framework on accounting, and increase the transparency of financial information.
This also aims to promote the accountability of businesses, helping Vietnamese businesses access more capital sources and list on the international market, so that Vietnam is internationally recognised as a full market economy, he added.
Sekiguchi Tomokazu from KPMG Vietnam - the provider of audit services said the roadmap for the application of IFRS (or equivalent standards) in each country is different, stressing the need to make thorough plans before application.
Tran Anh Quan, Vice Director of KPMG Vietnam, noted that the application of IFRS is a great challenge to any countries, even developed ones.
Vietnam is a country with low starting point for economic development, so the application of IFRS is more difficult, he said.
Representatives from JICA said the application of IFRS is very important and the agency can provide financial and technical assistance for Vietnam as well as share Japan’s experience in the work.
Vietnamese female entrepreneurs praised for creativity
Being creative to improve corporate management and approach international quality standards is one of the important factors that can help Vietnamese female entrepreneurs enhance their performance in selling farm produce.
According to the Vietnamese Consul General in Sydney Trinh Duc Hai, Vietnamese women have proven themselves to be creative and proactive – these characteristics are often shown by women in the agriculture and food sectors.
The female entrepreneur community is getting stronger, with 30 per cent of Vietnamese firms being led by women, Hai said at a forum on Monday.
The Vietnamese Government always provides the best support for female entrepreneurs as it eyes 50 per cent of all Vietnamese firms being owned by women by 2020, he added.
Truong Ly Hoang Phi, chairwoman of the HCM City Young Businessman Association, told the forum that many Vietnamese women have chosen the agriculture sector as the place to launch new businesses, and they need better access to the international community for improved experience, lessons and partnerships.
The comments were delivered at the Australia – Viet Nam Forum, which was co-organised by the Western Sydney University, the HCM City Economics University and the Australia-ASEAN Council in Sydney, Australia.
The five-day forum, which will end on Friday, is expected to help Vietnamese agriculture business leaders explore new methods of development to create new products that are competitive enough to enter overseas markets, especially those with strict requirements like Australia.
Business owners are also able to explore the Australian market and get an overview of requirements for their products. In addition, the forum will launch a special seminar on how businesswomen perform and manage their firms and balance between their professional and personal lives.
Barney Glover, vice chairman of the Western Sydney University, said that Australia is widely known as one of the highest-quality agriculture produce suppliers in the world.
With two-thirds of its agricultural exports being shipped to Asian markets, it is essential for the country to develop a selling network among them, Barney said.
As Viet Nam has risen as a potential market and there are plenty of similarities between Vietnamese and Australian agricultural products, improving the two sides’ trade relations is necessary, he added.
VN to adopt int’l accounting rules
Viet Nam is expected to adopt International Financial Reporting Standards (IFRS), replacing the current Vietnamese accounting standards (VAS), by 2020 as part of its efforts to improve transparency, according to experts at a seminar held in Ha Noi on Monday.
The event themed: “Experience in applying IFRS in some countries and roadmap for adoption in Viet Nam,” was co-organised by the Japan International Cooperation Agency (JICA) in collaboration with the Ministry of Finance (MoF) to share experiences on the application of IFRS standards in countries such as Japan, South Korea, the US, Malaysia and China.
Over the past 10 years, Viet Nam has established 26 accounting standards, but now these standards have disadvantages when compared to IFRS, and may create barriers and reduce confidence among foreign investors, said Director of the Accounting and Auditing Policies Department under the Ministry of Finance Vu Duc Chinh.
Chinh said businesses’ financial statements under VAS standards cannot accurately reflect the value of assets and liabilities, so the application of the international accounting system is crucial and inevitable.
“However, it is a tough task to apply international standards in Viet Nam because we have many different types of enterprises,” Chinh said.
According to Chinh, after approval by the Government, the MoF will translate IFRS into Vietnamese so that local firms can accurately and fully understand the contents of the new financial reporting norms.
Trinh Duc Vinh, deputy director of the MoF’s Accounting and Auditing Policies Department, said that the goals of applying IFRS in Viet Nam are to overcome the limitations of VAS, improve the legal framework for accounting, improve the transparency of financial information, enhance accountability of enterprises and help Vietnamese businesses access capital sources and become listed on the international market.
Regarding the roadmap for Viet Nam, participants agreed that during 2018-20, 10 to 20 simple IFRS standards will be selected to be implemented, and officially applied to all the firms listed on the stock market from 2020. All other businesses that wish to apply IFRS and find that the application is possible are also encouraged to do so.
Sharing experiences of some countries in the world, Sekiguchi Tomokazu, a representative from audit company KPMG in Viet Nam, said that the roadmap for the application of IFRS of each country differs depending on the actual situation of that country.
In Korea, all listed companies, financial institutions, state-owned enterprises and other public interest entities are subject to the mandatory application of IFRS from 2011, he said.
Meanwhile, in China, firms are still required to apply the Chinese national accounting standards, so there are no specific rules for applying IFRS, Tomokazu added.
A representative of JICA said that the application of IFRS is very important. In Viet Nam, JICA can provide financial and technical support, facilitate the exchange of experiences on applying IFRS in Japan and help strike a balance between the application of IFRS and the national accounting system.
Gia Lai lures $220million investment
The Central Highlands province of Gia Lai on Monday granted licences to 10 projects with a total registered capital of VND5 trillion (US$220 million).
The province also signed memoranda of understanding with 11 investors for funding totaling more than VND16 trillion ($700 million) during an investment promotion conference in Pleiku City to foster investment co-operation between the locality and HCM City
In his speech at the event, the provincial People’s Committee vice chairman Vo Ngoc Thanh said from now to 2020, his province will continue to hasten the development of several sectors including hi-tech, agricultural processing, clean and renewable energies and tourism.
Priority will be also given to support local enterprises to expand their co-operation with those from other provinces and overseas, he said.
With its open mechanisms and preferential policies, Gia Lai is ready to welcome investors and to create the best possible conditions for them to operate in the province, he added.
HCM City investors have to date carried out 26 projects capitalised at more than VND6.3 trillion in Gia Lai over the past 15 years, mostly in agro-forestry- fishery, infrastructure development of urban areas and trade, following a socio-economic co-operation programme, which was implemented by Gia Lai and HCM City.
In return, Gia Lai investors have poured nearly VND30 trillion into projects in HCM City.
Chairman of Dong Giao Foodstuff Export JSC (Doveco) Dinh Cao Khue suggested that local authorities establish a professional body in charge of calling for investment while supporting investors in registering their investment projects and addressing difficulties.
He also petitioned the province’s Department of Agriculture and Rural Development to assist investors who invest in farming with production planning and facilitate links between them and local farmers.
Also at the event, HCM City issued calls for investment in 190 projects, especially those related to smart urban development.