Vietnam currency seen stable this year

Strong remittance inflows, rising foreign exchange reserves and anti-dollarization efforts will help stabilize the exchange rate between the U.S. dollar and the Vietnam dong this year, according to news website An Ninh Tien Te.

In a report on the economic outlook in 2018, the National Financial Supervisory Commission (NFSC) said the weak U.S. dollar made the dollar-dong exchange rate relatively stable last year. In late 2017, the USD Index dropped by 9.1% compared to early 2017 although the U.S. Federal Reserve (Fed) had hiked interest rates several times.

Besides, the interest rate differential between Vietnam dong and U.S. dollar was kept at a high level of 6-7% and foreign currency mobilization increased by only 4% compared to end-2016.

According to NFSC, a large amount of foreign currency was sold or changed into Vietnam dong. Large trade surplus, rising foreign direct investment, consumer optimism and macroeconomic stability also helped the State Bank of Vietnam (SBV) boost foreign exchange reserves to a record high of 54.5 billion.

Financial expert Huynh Trung Minh said despite the Fed’s rate hikes, the weak U.S. dollar has played an important role in stabilizing the foreign currency market in Vietnam.

Bui Quang Tin, an expert in banking and finance, was quoted by the news website as saying that the Fed’s rate hikes last year were foreseen because the world’s largest economy expanded an impressive 2.2% the same year and unemployment dropped to 4.1%, the lowest in 10 years. Therefore, the Fed’s upcoming rate hikes, if any, would have little impact on the Vietnam dong.

Data of the World Bank shows remittances to Vietnam increased about 16% in 2017 to an estimated US$13.8 billion, the highest in five years.

SBV has restricted foreign currency loans and kept the foreign currency deposit interest rate at 0%. If the Fed raises interest rates this year, the U.S. dollar would strengthen. The dollar-dong exchange rate would increase slightly by 1.5-2%, giving Vietnamese companies an export advantage.

According to Vietcombank Securities Company (VCBS), the nation’s higher foreign exchange reserves will enable SBV to stabilize the foreign exchange market and keep interest rates low. VCBS forecast the Vietnam dong value compared to the U.S. dollar will drop by no more than 2% this year.

Standard Chartered has forecast the exchange rate between the dollar and the dong would be VND22,650 per dollar in the second quarter and VND22,600 at the end of 2018.

HSBC strikes settlement deal with Payoo

HSBC Vietnam has made settling credit card payments more convenient than ever, thanks to a new cooperative arrangement with the VietUnion Online Services Corporation.

Customers can easily and quickly pay off their HSBC credit card balance using VietUnion’s payment solution, Payoo, which is available at certain convenience stores and retail outlets nationwide.

From January 15, HSBC credit card holders need only follow a few simple steps at any retail outlet offering Payoo: swipe their card, check the payment details when printed out, then settle up by paying cash.

The simple service is now available at Circle K, Ministop, Aeonmall, GS25, Household Pico, Household HC, Mediamart, and Hoang Ha Mobile outlets. The network is to grow to 5,000 by March, with more retail chains joining and providing greater choice.

This represents another out-of-branch channel for HSBC’s customers to settle credit card payments, along with internet banking and ATMs, and is in line with the bank’s strategy of continually offering customers more simplicity, flexibility, and security when using HSBC credit cards.

It’s also important as a cooperative arrangement between an international bank in Vietnam and one of the country’s most innovative financial technology (fintech) companies to meet the rapidly changing needs of customers for convenient and modern financial services.

Mr. Sabbir Ahmed, Head of Retail Banking and Wealth Management at HBSC Vietnam, said that customers expect to have a modern banking experience and seek easy access to products and services with added value. “With the great benefits we offer with our HSBC credit cards and the swift payment settlement now available via Payoo, we have been able to optimize the customer experience to meet needs,” he said. “As always, the customer experience is at the heart of everything we do. This latest offering is another example of how we constantly seek to adapt and anticipate the needs of our customers in the quickly-evolving technology world.”

The HSBC Group works closely with dozens of technology companies and research institutions around the world to advance its own digital capabilities.

In line with the group’s approach, HSBC Vietnam has actively ramped up its digitalization by applying HSBC’s global solutions while exploring solutions developed by local fintech companies.

Competitiveness of Hanoi SMEs poor

Most small and medium-sized enterprises (SMEs) in Hanoi produce low value-added products with low competitiveness, so it is therefore necessary to develop production strategies to improve competitiveness and sustainable development, Mr. Mac Quoc Anh, Vice Chairman and General Secretary of the Hanoi SMEs Association, told a recent business forum entitled "Improving the Competitive Ability of Hanoi SMEs" held in the capital.

Most enterprises are still of small scale, marked by low competitiveness and outdated equipment. They also frequently face shortages of capital, human resources, and suitable premises, and have difficulties accessing resources for development.

Moreover, SMEs in Hanoi have not had specific business strategies and have not identified targeted customers. Increasing their competitiveness has become an urgent matter.

The Hanoi SMEs Association offered support by organizing the business forum. “They were able to exchange information relating to investment, business, mechanisms, and policies and seek business development opportunities as well as suggestions on effective business models,” he said.

The forum included activities such as exchanges and experience sharing on the process of investment, production, and business. SMEs could also share their difficulties and problems in the investment process and seek opportunities to access capital.

SMEs at the forum presented new products as well as modern solutions to resolve their difficulties. The potential, advantages, and challenges of e-commerce during the fourth industrial revolution (Industry 4.0) were also discussed.

Ms. Pham Thi Ly, Director of the Integration Development Enterprise Center (IDE), made a presentation entitled “Quality and Transparency are the Key to Creating Trust Among Customers”, Mr. Nguyen Dinh Hung, General Director of the EDX Corporation, made one entitled “E-commerce in the Industry 4.0 Era”, and Mr. Nguyen Quang Huy, General Director of the Khai Minh Investment Joint Stock Company, spoke about “ERP Solutions for SMEs”.

The forum also included activities such as B2B business connections, introducing products and services, and consultations on training, remuneration, marketing and communications, and legislation.

Ha Tinh to receive safe drinking water from EKOCENTER

Coca-Cola Vietnam, in cooperation with the Phu Tai Duc Group, has opened an EKOCENTER in north-central Ha Tinh province’s Thach Ha district. The EKOCENTER will be operated by the Phu Tai Duc Social Enterprise to create shared values for the community on the journey to bringing sustainable values and improving the capacity of Vietnamese women.

Similar to EKOCENTERs in other locations, EKOCENTER Ha Tinh will focus on three main objectives: safe drinking water, women’s economic empowerment, and community facilities, including daily necessities, soft skills and online training, internet services, health, and sports.

Ha Tinh is among the provinces in Vietnam most affected by natural disasters every year, such as storms and flooding. Its clean water supply has also been affected by saline intrusion and environmental pollution, creating many challenges. The EKOCENTER is equipped with a water purification system with a capacity of 6,000 liters a day to provide safe drinking water to local households, contributing to resolving some of the challenges facing Ha Tinh in clean water access.

“Witnessing the joy of Vinh An villagers as they receive safe drinking water from EKOCENTER, we feel motivated to continue the mission of supporting the community with sustainable values,” said Mr. Sanket Ray, Managing Director of Coca-Cola Vietnam. “With the cooperation and management of the Phu Tai Duc Group, led by its CEO Ms. Nguyen Anh Nga, a member of the Vietnam Business Council, we believe that EKOCENTER will bring more and more benefits to the people and the community, especially with activities that help improve the economic capacity of local women.”

The EKOCENTER is powered by green energy from solar roof panels. Its computer lab will provide local children and women with access to information, allowing them to practice their computer skills and participate in online startup training.

“We are proud to partner with Coca-Cola to run an EKOCENTER in Ha Tinh,” said Ms. Nguyen Anh Nga, General Director of Phu Tai Duc. “The goal and mission of the Phu Tai Duc Social Enterprise is to serve and bring benefits to the community, especially safe drinking water and periodic free community healthcare services, especially for the elderly people in Vinh An. Through our training activities, we hope to contribute to enhancing skills, especially among women, allowing them to improve their lives for a better future.”

Business activities providing necessities, coffee, and computer labs will be managed and operated by Phu Duc Tai according to the criteria for re-investment. A portion of the proceeds from the businesses will continue to be invested in the center’s facilities, infrastructure, and social programs. Vocational training for baristas and local guides and in cooking, handicrafts, baking, and other fields will contribute to sustainable values in the local community.

EKOCENTER is a Coca-Cola community initiative that promotes public-private partnerships around the globe. The first EKOCENTER in Vietnam was opened in 2015, and by the end of 2017 there were nine in the country, in Ho Chi Minh City, Hanoi, Da Nang, Hue, Ha Long city, and Ben Tre, An Giang, Dong Thap, and Ha Tinh provinces. Four more are expected to be built this year.

Malaysia's Samchem plans Vietnam listing for subsidiary

Malaysian chemical distributor Samchem Holdings Bhd has announced it is exploring the possibility of listing its subsidiary, the Samchem Sphere JSC, in which it indirectly owns 63.25 per cent, on the Ho Chi Minh Stock Exchange (HoSE), Vietnam’s main bourse.

“The proposed listing will enable Samchem to capitalize on the fast-growing Vietnamese economy and the potential growth of the industrial chemical sector in Vietnam,” Samchem Holdings wrote in a filing to Bursa Malaysia.

The listing would provide a platform for Samchem Sphere to obtain listing status and gain direct access to Vietnam’s capital market to raise funds for future expansion and continued growth without having to rely on existing resources, it added.

The VN-Index increased 48 per cent last year, putting Vietnam among the three best-performing markets globally.

Samchem said a corporate adviser licensed in Vietnam has been appointed to evaluate and advise on the proposed listing and noted that it is still in the exploratory and preliminary stage. “Any further material development on the proposed listing will be announced in due course,” it said in a statement.

Incorporated in Vietnam in December 2006, Samchem Sphere is engaged in the distribution of industrial chemical products.

It has registered capital of VND10 billion ($440,000), with Samchem holding 63.25 per cent through its wholly-owned unit Samchem Sphere Export Sdn Bhd. The remaining stake is held by its directors - Mr. Dennis Ho Chin Chye and Ms. Nguyen Thi Thu Thao - with 35.75 per cent and 1 per cent, respectively.

In financial year ending December 31, 2016, Samchem Sphere earned pre-tax profit of $2.68 million on revenue of $56.55 million, accounting for 32 per cent of Samchem’s consolidated revenue for the year.

Strengthening French-Vietnamese co-operation in infrastructure and satellite development

As Vietnam needs large capital for investment and development, French firms expressed their desire to strengthen bilateral co-operation in aviation, urban railway and satellite development.

At yesterday’s high-level dialogue between Vietnam and France, the representative of ADP Ingenierie (under Aeroports de Paris Group) informed that the company has just signed a contract with the Civil Aviation Authority of Vietnam to review and provide possible master plans for Tan Son Nhat International Airport, which receives 45-50 million arrivals annually.

ADP hopes to further co-operate and support the Vietnamese aviation industry to improve capacity and meet the fast-evolving customer demand.

Vietnam’s current private airplane fleet includes nine Airbus A350, three Airbus A330, and over 60 Airbus A321 and 10 Boeing 787s. “These figures confirm the belief of Vietnamese carriers in France’s Airbus planes and its maintenance services,” said Nguyen The Phuong, Deputy Minister of Planning and Investment (MPI).

Earlier, Vietnamese carriers bought 40 airplanes worth $6.5 billion from France’s Airbus in September 2016. Of these, Vietjet bought 20, and Vietnam Airlines and JetStar Pacific ten each. Thus, Airbus  expressed its desire to further develop the partnership between Airbus and Vietnamese carriers in the coming time.

Regarding the development co-operation, France is one of the leading European countries providing official development assistance (ODA) to Vietnam, with around EUR3 billion ($3.7 billion). This ODA focuses on agriculture, basic infrastructure, water supply, health, and finance.

Particularly, France is co-donor (along with ADB and EIB) of the pilot 12.5-kilometreMetro Line 3 that goes from the central station to western Hanoi, with a 4km underground section. This is the most important project that France has ever funded in Vietnam and carries an ODA of EUR514 million ($634 million), including EUR335 million in preferential loans from the French Treasury and EUR179 million from French Development Agency.

At the high-level bilateral dialogue, Martin Landais, head of the Asia Division of the French Treasury, said: “Constructing an elevated metro is faster than the underground option, so we should launch the first phase of the project to meet the transport demand of Hanoi soon. We are always ready to provide preferential loans for the project.”

Related to ODA loans,MPI proposed France to provide EUR200 million ($247 million) of annual ODA loans to projects on infrastructure, agriculture, education, and coping with climate change in Vietnam.

Based on the success of VNREDSat-1 (Vietnam Natural Resources, Environment and Disaster-monitoring Satellite-1) and its efficiency in socioeconomic development and coping with natural disasters and climate change, France’s Collecte Localisation Satellites Group (CLS) suggests Vietnam to develop VNREDSat-2. France will support Vietnam to prepare infrastructure, technical skills, and finance.

Earlier, in May 2013, Vietnam's first remote sensing satellite (VNREDSat-1) was successfully launched into orbit. The French government provided the preferential ODA of EUR55.8 million ($68.8 million) to this project.

As of the end of 2017, there were 506 French-invested valid projects with total registered investment capital of $2.78 billion. France ranks 16th among the 128 nations and territories investing in Vietnam with an average investment capital of $5.5 million per project. Meanwhile, Vietnam has nine investment projects in France with total registered capital of $3.46 million.

As for co-operation in trade, two-way trade turnover was $4.6 billion in 2017, up 11.6 per cent on-year. Vietnam’s export turnover to France was $3.35 billion, while the import turnover was $1.27 billion.

The EU-Vietnam Free Trade Agreement, which is expected to be signed this year, will further strengthen trade and investment co-operation between the two countries in the coming time.

French drink-makers eye Vietnam

Wishing to cash in on Vietnam’s skyrocketing demand for drinks, French beverage firms have asked local authorities to ease special consumption tax lines, which they find to be too high and contrary to the country’s commitments of reducing taxes for beverages under the EU-Vietnam Free Trade Agreement.

Jean Rodesch, vice president of Government Affairs and Corporate Social Responsibility at France’s Pernod Ricard—the world’s leading producer of high-grade spirits—recently came to Vietnam to seek opportunities to export products to the country. Vietnam consumes nearly four billion litres of beer and millions of litres of wine and spirits each year.

“We are preparing to engage more in Vietnam, where the demand for spirits and wine is growing strongly. The EU-Vietnam Free Trade Agreement (EVFTA) will enable us to do better business in Vietnam,” he said.

Pernod Ricard currently operates more than 85 branches and 100 production workshops around the world. Its revenue in 2015 totaled at over €8.5 billion ($9.02 billion).

However, at yesterday’s Vietnam-France high-level economic dialogue in Hanoi, French Minister of State Jean-Baptiste Lemoyne said that French beverage firms like Pernod Ricard will find it difficult to penetrate Vietnam, even though the country has committed to reducing import tariffs for EU drinks under the EVFTA.

Under the EVFTA, which is expected to be ratified in 2018, Vietnamese tariffs for wines and spirits will be removed seven years after the deal’s entry into force. The tariff for European beer will follow after 10 years.

“Since the conclusion of the EVFTA, Vietnam has reformed its special consumption tax (SCT) in a way that nullifies the EU’s legitimate expectations of improved market access opportunities for European wines and spirits,” Lemoyne said. “Drink exporters will not be able to boost their exports to Vietnam.”

Nguyen Thuy Linh, a representative from the Ministry of Finance, told Lemoyne that under Vietnam’s law amending a number of articles of the Law on Special Consumption Tax No.70/2014/QH13, which took effect on January 1, 2016, all wine and spirits products in Vietnam are subject to high SCT levels because they are special items that can affect human health.

Vietnam has increased SCT for alcoholic beverages by 5 per cent annually from 2016 to 2018. Taken together, the new regulations will make imported alcoholic beverages much more expensive.

Specifically, SCT for alcoholic beverages containing 20 per cent alcohol by volume or more (mainly spirits) was raised to 55 per cent from January 1, 2016, to 60 per cent from January 1, 2017, and to 65 per cent from January 1, 2018.

These tax increases have also been applied to beer. SCT for alcoholic beverages containing less than 20 per cent alcohol by volume has been raised to 30 per cent from January 1, 2016 and to 35 per cent from January 1, 2018.

“We highly recommend that Vietnam create favourable conditions for French wine and spirits products in the Vietnamese market,” Lemoyne said.

According to the Delegation of the European Union to Vietnam, Vietnam has committed itself to ensuring that the conditions for the distribution and sale of spirits will not become more restrictive than at present and that it will abide by certain principles while issuing licences for wines.

Also under the EVFTA, many EU geographical indications will be protected in Vietnam automatically upon the deal enters into force.

CSR brings success to investors

Foreign investors in Vietnam are urged to pay more attention to corporate social responsibility (CSR) to achieve business success by reducing operational costs with improved employee engagement.

Kenan Institute Asia, a non-profit organisation, today held a workshop in the northern province of Bac Ninh to introduce a project on raising businesses’ awareness of international labour standards. The project will be carried out between 2017-2019 in industrial zone (IPs) in Bac Ninh.

The workshop attracted around 30 foreign investors from VSIP, Dai Dong, and Tien Son IPs. They included Cedo Vietnam, Canon Vietnam, and Suntory PepsiCo Vietnam.

Addressing the event, Mau Quang Thang, deputy head of the Bac Ninh Industrial Park Management Board, said that the province attracts 285,000 labourers, with the majority being female employees. However, housing for labourers in local IPs and kindergartens for their children have yet to satisfy the demand.

“Although we required investors to pay due attention to the issues, they remain a big problem. Moreover, the trade unions’ role in protecting labourers’ interests remain vague. In 2017, we saw five labour strikes over salary, social insurance, and extra hours,” Thang admitted.

Highlighting the importance of CSR in business operations, John DaSilva, director of Kenan’s Corporate Engagement, said that understanding the role engaged employees can play a role in supporting business objectives and reducing costs.

“If you want to have a successful and sustainable company, you need to have good CSR practices,” he noted.

According to a 2014 Nielsen survey, 67 per cent of respondents think it is either essential or expressed a strong preference for working for socially-responsible companies.

People who feel they work within a strong CSR culture rate their organisations far more favourably in a number of important areas than do people who feel they work in a relatively weak CSR culture.

Kenan decided to pilot the project in Bac Ninh before multiplying it in other provinces because Bac Ninh has appeared on the radars of international investors. At present, Bac Ninh is home to 16 operating IPs.

According to the Ministry of Planning and Investment, Bac Ninh ranked second among Vietnamese localities in terms of registered foreign direct investment (FDI) attraction in 2017, with $3.4 billion. The positive number was largely thanks to Samsung Display Vietnam expanding its investment in its local project by $2.5 billion.

Although Bac Ninh is a small province, its economic value has increased significantly over time. The province ranks second among Vietnamese cities and provinces in terms of import-export turnover and FDI attraction.

Launching Asia-Pacific Stevie Awards towards innovation and creation

In the age of Industry 4.0, economic integration, and innovation, creativity is essential for all firms to improve the quality of products and services and promote their brands on the regional and international markets.

Stevie Awards is the most prestigious annual accolade for innovation and creativity in the international business community. 

Since its establishment in 2002, Stevie Awards has awarded the best performing enterprises and individuals from over 60 countries. To date, thousands of experts from various fields of business have been sitting on the judging panel of the award.

Speaking at the launching ceremony of Asia-Pacific Stevie Awards, Michael Gallagher, founder and president of Stevie Awards, said "It is the first time that I have come to Vietnam as well as the first time that Stevie Awards has been launched in Vietnam. By honouring individuals and enterprises of excellence, the awards will encourage individuals and enterprises alike to continue innovating and creating, stepping up competition on the domestic and the regional Asia-Pacific scenes alike."

Asia-Pacific Stevie Awards, which was first organised in 2014, is part of Stevie Awards. It is open to all organisations and individuals from the 22 countries of the Asia-Pacific region. Up till now, numerous Vietnamese enterprises were granted the award, including Viettel, Doosan Vina, and DHL. In 2017, over 600 candidates applied for the award. 

Highly appreciating the first Stevie Awards in Vietnam, Former Deputy Minister of Planning and Investment Dang Huy Dong said "In Vietnam, there are numerous awards to honour Vietnamese enterprises. These awards are organised by Vietnamese authorities to evaluate Vietnamese enterprises based on Vietnamese standards, thus, the evaluation results are not absolutely objective. 

However, Stevie Awards is the international scene, thus, Vietnamese enterprises will be evaluated according to a more objective, international-standard framework. This is a precious opportunity for Vietnamese enterprises to compete with the international business community."

Asia-Pacific Stevie Awards is an opportunity for businesses to nominate their excellent officers and promote work ethics, innovation, and creation to approach Industry 4.0. This is not only an opportunity for small businesses to break open a foreign market, but also for large ones to promote their brands and prestige.

"The award will push the winning individuals and enterprises to put even more effort into their work to not only stay worthy of the title, but perhaps take another title home next year. These awards also honour and promotes good personal values," emphasised Hoang Ngoc Bich, CEO of Global Leaders, the authorised representative of Crestcom International in Vietnam.

The fifth Asia-Pacific Stevie Awards has been launched to find potential candidates for the judging panel and nominees for the awards. The organising board is expected to set up the awards ceremony in Vietnam in either June 2019 or 2020.

Zurich Airport keen on investing in Long Thanh

Switzerland’s Zurich Airport is interested in cooperating with Vietnam in carrying out airport projects, including the colossal Long Thanh International Airport adjacent to Ho Chi Minh City, a company executive has told Deputy Prime Minister Vuong Dinh Hue.

 Zurich Airport has made preliminary explorations of the Long Thanh project, CFO Mr. Lukas Brosi told Deputy Prime Minister Hue at the World Economic Forum (WEF) in Davos.

The Swiss airport operator is also keen on the public-private partnership (PPP) legal framework being refined by the government as well as the transfer of expertise in airport management, Mr. Brosi added.

The Deputy Prime Minister welcomed Zurich Airport’s interest and encouraged it to invest in proposed airports and acquire a stake in Airports Corporation of Vietnam (ACV), which operates 22 airports around the country. The government plans to cut its holding in ACV to as little as 65 per cent by end-2020, from 95.4 per cent currently.

The government is preparing the site of Long Thanh International Airport, which will cost over $16 billion, for construction, with it replacing the overloaded Tan Son Nhat International Airport as Ho Chi Minh City’s main aviation hub. A range of foreign investors from North America, Europe, and Asia have expressed interest in taking part in the project.

Vietnam is building ambitious key national projects to pave the way for future growth and to alleviate growing bottlenecks. As rising incomes result in fewer international aid dollars and the clout of State-owned enterprises (SOEs) wanes, Vietnamese authorities are turning to the PPP model for infrastructure development.

Though the legal framework for PPPs has been in place for eleven years, however, results have been limited. Inadequate support for the financial viability of projects, weak financing, and risk allocation between the government and the private sector have been problematic. 

ACV has been assigned by the government to study investment proposals for the Long Thanh project, but if outsiders are involved, questions are being asked whether ACV will remain the operator of the airports or will simply receive a percentage of revenues, with the balance going to external investors.

Petro Mien Trung listed on HOSE     

The Petro Center Corporation (Petro Mien Trung), was listed for the first time on Thursday, on the HCM City Stock Exchange (HOSE).

Under the stock code of PMG, the company put up 33 million shares on offer, at a reference price of VND14,000 (US$0.62) per share, and finished trading by the end of the first session at VND16,800 ($0.75) per share.

The company currently set the level of foreign investor’s ownership at 49 per cent, operating margin of 16 per cent and a market capitalisation of $24.7 million.

Petro Mien Trung hopes to achieve a payout ratio of 10 per cent in 2018, while keeping post tax income at $1.82 billion.

As a member company of the Vietnam Oil and Gas Group, Petro Mien Trung started with an initial charter capital of VND10 billion ($446,000), which it has since increased to VND330 billion ($14.7 million) as of the end of 2017.

According to its 2017’s financial report, the company’s post-tax profit was VND38.29 billion ($1.7 million) with total owner’s equity of $21.9 billion, having increased its assets by 32.66 per cent in the first three quarters of 2017.

Tran Thi Quyen Linh, HOSE representative, said that via this listing, the company will gain better access to public investment and favourable conditions in attracting investment funds.

Linh said that the HOSE expected Petro Mien Trung to comply with national law in the field of finance and securities, meeting strict regulations implementation of information disclosure and transparency in financial situation, investment and business activities to its investors, the authorities and the general public.

Nguyen Tien Lang, Petro Mien Trung’s chairman, said that the company aims to gain more market share for its own brands of PM Gas, Picnic Gas, and Vgas across the country.

The company’s main business is gas cylinder production, with 98 per cent of annual revenue concentrated on the sales of around 1.4 million gas-related industrial and household products.

At the moment, the company focuses on its business activities that include liquid petroleum gas production and storage, in the central and southern Vietnamese markets.

In recent times, increasing supply and demand has brought the company a larger share of the market and positive business results. 

2017 Outstanding Property awards given away     

Chairman of Vingroup, Pham Nhat Vuong, has won the Property Business Person of the Year award at the Outstanding Property Awards given away by Nhịp Cau Dau Tu (Investment Bridge) magazine.

Vingroup also won in the Outstanding Developer category for Office Building Retail along with AEON Viet Nam Ltd.

Sun Group won in the Outstanding Developer category for Resort and Hotel along with Tanzanite International, and in the Best Feng Shui category with its Sun Grand City Ancora Residence.

Trung Nam Construction and Investment JSC won for Best Public Infrastructure and DKRA Viet Nam for Outstanding Distributor.

Siam City Cement Viet Nam, Coteccons Construction JSC and Hoà Bình Construction Group shared the award for Best Construction Materials Provider and Construction Enterprises.

Thuan Viet, Phu Long, An Gia, Hung Thinh, and Khang Dien shared the award for Outstanding Developer in the Luxury and Mid-level Apartments category.

Pho Dong, Tien Phuoc, Nam Long, and Phuc Khang shared the award for Outstanding Designer.

The winners were chosen by a jury of experts.

Last year the property market grew by over 4 per cent and contributed 0.21 per cent to GDP growth.

It attracted over US$3 billion in FDI, or 8.5 per cent of the total amount.

This year is again expected to be good, with apartments expected to see prices rise by an average of 3 per cent. 

Laos seeks VN investment     

Laos is seeking investment from Viet Nam in the Savan Seno Special Economic Zone (SEZ) in Savannakhet Province, a representative of the SEZ said during a seminar in HCM City on Thurday.

The seminar on “Investment Promotion in Savan Seno SEZ” was organised by the Laos consulate and HCM City’s Investment and Trade Promotion Centre (ITPC) in HCM City.

The event provided potential investors with essential information on the SEZ and preferential policies.

The Savan Seno SEZ, covering 1,000ha of land, is the first SEZ in Laos.

One of the key business sectors at the SEZ is Export Oriented Processing, which includes agricultural and food processing; copper and wood based production; auto, motorcycle assembling and maintenance; and textiles, garments, shoes and bag production.

A representative of the SEZ said that Laos is politically and economically stable, has a strategic geographical location, and is rich natural resources.

It also has generous tax incentives, a stable and low-cost electricity supply, and special privileges for exports.

A One Stop Service Centre would be another highlight at the Savan Seno SEZ.

Investors will be able to receive investment licenses, complete enterprise registration, and legally operate their companies within five working days.

The SEZ will also help with labour recruitment.

About 97 companies, mostly from Laos, Japan, France and Malaysia, have invested in Savan Seno SEZ.

The seminar was part of Laos Goods Week, which is being held between January 24- 28 in HCM City. 

TH Group begins construction of juice factory in Son La

The TH Group began construction of its fruit and fruit juice processing factory in Van Ho district in the northern mountainous province of Son La on January 25. 

Capitalised at 1.2 trillion VND (53 million USD), the factory will be developed in two phases. 

The first, worth 300 billion VND, will process fruits such as orange, longan, mango and passion fruits with an annual capacity of 30,000 tonnes of products to be sold to other fruit juice producers. 

Meanwhile, the second, valued at 900 billion VND, will provide several kinds of canned fruit juices. 

In her speech at the groundbreaking ceremony, Vice Chairwoman of the National Assembly Tong Thi Phong suggested the TH Group accelerate the construction of the factory. 

She also called on local authorities to create the most favourable conditions for the group to put its project into operation soon, helping create more jobs and boosting incomes for farmers in the locality. 

Currently, Son La province has 42,600h of fruits and is striving to increase the figure to 100,000 ha by 2020.

Pepper industry to focus on quality

The pepper industry plans to reduce the area under the spice and focus instead on improving quality to ensure long-term growth, a seminar heard in HCM City on Thursday.

Le Van Duc, deputy head of the Crop Production Department, said the pepper cultivation area had increased sharply since 2010 to 152,668ha last year, exceeding the Government’s zoning plans by more than 100,000ha.

High pepper prices in recent years have incentivised farmers into expanding -- even to unsuitable lands and without any planning -- while the overuse of fertilisers has caused plants to degenerate quickly and be more vulnerable to disease, he said.

According to research by international organisations, global pepper supply has surpassed demand since supply went up by 5.5 per cent annually in 2012-17, while demand rose by only 2.4 per cent.

The situation is forecast to continue until 2020, and so pepper prices are unlikely to increase any time soon, he said.

Viet Nam is the world’s largest pepper producer and exporter.

In the domestic market, prices have gone down to around VND60,000 per kilogramme, about a third of the price a year ago, causing difficulties for farmers, he said.

The sector should gradually reduce the area under the crop to around 110,000ha in 2025 and 100,000ha in 2030, he said.

Nguyen Nam Hai, chairman of the Viet Nam Pepper Association, agreed with Duc, saying relevant agencies should “advise farmers not to expand the area under pepper from this year.”

Localities also need to persuade farmers growing pepper without proper planning to “switch to other crops,” he said.

With import markets like the US and EU setting the bar higher for food safety, the VPA and delegates at the meeting called on farmers, processors and distributors to focus more on safety and hygiene.

They also called for speeding up the process of sustainable production to improve quality and protect the environment.

Delegates suggested that the Ministry of Agriculture and Rural Development should quickly review the list of pesticides and ban the use of chemicals that foreign markets have banned.

Besides, exporters should develop close links with farmers to better control quality, they said.

Viet Nam exported 215 tonnes of pepper last year worth US$1.19 billion, a 20 per cent increase in volume but a 22 per cent decline in value, Hai said.

They went to more than 100 countries and territories, with Asia, Europe and the US being the biggest markets.

According to international research organisations, global demand is expected to reach 570,000 -591,000 tonnes by 2025 compared to the current 510,000 tonnes.

Viet Nam would still be the world’s largest exporter, so it is necessary to soon establish a trading floor for pepper to increase transparency and hedge price risks for farmers, Hai said.

Minister of Agriculture and Rural Development Nguyen Xuan Cuong said the rapid development of the pepper sector has exposed shortcomings and “[it] needs to be restructured.”

He agreed not to increase the area under cultivation and urged localities to enhance communication with farmers so that they can switch to other crops where required and do not to expand cultivation of the spice. 

Nghệ An industrial park attracts $38m     

The Viet Nam - Singapore Industrial Park (VSIP) in Nghe An has attracted 12 investors with total committed investment of VND860 billion (US$38 million) since construction began in 2016.

Seven investors have received land for their projects and work is expected to begin soon. Another two plants will start operations at the end of the first quarter.

In the first stage, the park, 7km west of the provincial capital of Vinh City is being developed over 83ha. It will become an eco-site favourable for investors and include an integrated township, industrial park, shopping and food centre and shops and houses.

Designers from Singapore and Malaysia plan to also build a 2.6ha entertainment park with an outdoor stage and gym centre.

The park also offers investors a ready- built factory to start operations quickly and cheaply. It will have its own technical infrastructure and services.

In 2015, VSIP Nghe An was granted exclusive rights by the provincial People’s Committee to develop 750ha and an investment licence for phase one of the project with $15.2 million in funding. The land includes 198ha of industrial land and 81ha of commercial and residential land.

The park, the seventh VSIP project in Viẹt Nam, aims to attract garment manufacturers, agro businesses and fast-moving consumer goods (FMCG).

Other parks are located in Binh Duong (two), Quang Ngai, Bac Ninh and Hai Phong, in addition to Hai Duong.

To date, VSIP projects in Viet Nam have drawn 750 investors from 30 countries and territories with total investment of $10 billion, creating 200,000 jobs for local and foreign workers. 

Laos calls for investments in Savan Seno special economic zone

A workshop was held in Ho Chi Minh City on January 25 to call on Vietnamese businesses to invest in the Savan Seno Special Economic Zone in the Lao province of Savannakhet.

Cao Thi Phi Van, Deputy Director of the Investment & Trade Promotion Centre (ITPC) of Ho Chi Minh City, said Vietnam is now one of the biggest foreign investors in Laos. 

Enterprises from the southern economic hub of HCM City have actively invested in the field of agriculture and forestry, she said, adding that in 2017 alone, 36 businesses from the city poured over 40 million USD into projects in Laos. 

The workshop creates a chance for investors in Vietnam and HCM City in particularly to explore investment opportunities in the Lao special economic zone, thus further promoting trade and investment cooperation between the two countries.

Thongsay Sayavongkhamdy, Director of the management board of the Savan Seno Special Economic Zone, said Savan Seno is the first special economic zone of Laos. It was established in 2003 in Savannakhet province which is considered a centre of trade, investment and services in the central region of Laos.

The economic zone is located on Highway 9 connecting Vietnam, Laos and Thailand on the East-West Economic Corridor, linking with China in the north and Cambodia in the south through Highway 13, he said.

Thanks to favourable transport conditions, Savan Seno is one of the most attractive destinations for foreign investment in Laos, he added.

Covering nearly 1,000 hectares, the economic zone is calling for investments in the fields of production, services and trade, food and farm produce processing, bronze and timber products, automobile and motorbike assembling, garment-textile, footwear and handbag.

Regarding services, investors are encouraged to pour capital in banking, insurance and finance; logistics and distribution; international schools and hospitals; amusement parks, workshops and training; hotels, spa, restaurants and tourism centres.

The management board also appeals for investment in tax-free areas, wholesale and re-export centres, as well as trade and exhibition centres.

Businesses investing in the economic zone will enjoy tariff preferences such as incorporate tax exemption for 2-10 years and customs clearance for all imported materials for production to export.

Investors could lease land with a maximum duration of 75 years and enjoy exemption of land rental in 12 years.

Another advantage of the economic zone is the implementation of the one-stop-shop mechanism for all procedures related to operation licences, tax registration, import-export licences, certificates of origin, and construction licenses. 

Additionally, the management board will support investors in labour recruitment and licenses, visa application, and registration of temporary residence, electricity and water usage.