Bac Ninh leads in 4M foreign investment

Northern Bac Ninh province led the country in attracting foreign direct investment (FDI) in the first four months of this year, with total registered capital of $2.7 billion, accounting for 25.51 per cent of the total, figures from the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment reveal.

Following was southern Binh Duong province with total registered capital of $1.53 billion, accounting for 14.48 per cent of the total. The Mekong Delta’s Kien Giang province was third, with capital of $1.28 billion, accounting for 8.77 per cent of the total.

As at April 20, Vietnam had attracted 734 new projects this year with total registered capital of $4.88 billion, equivalent to 96 per cent of the figure in the same period last year.

There were also 345 projects increasing their investment capital to the tune of $4.36 billion, up 241.8 per cent year-on-year, while capital contributions and share purchase reached $1.35 billion, up 106.8 per cent.

Total capital in new projects and those increasing their capital, together with share contributions and purchases, stood at $10.95 billion, up 40.5 per cent over the same period of 2016. As at April 20, FDI projects had disbursed $4.8 billion, up 3.2 per cent year-on-year.

Exports by FDI enterprises (including crude oil) reached $44.05 billion, up 16.1 per cent year-on-year and accounting for 71.82 per cent of exports. Excluding crude oil, exports were $43.12 billion, up 15.8 per cent and accounting for 70.29 per cent of export turnover.

Foreign investors invested in 18 industries, of which the manufacturing and processing sector attracted the most attention, with $7.36 billion and accounting for 69.53 per cent of total registered capital.

South Korea ranked first in investment source, with $4.05 billion, accounting for 38.25 per cent of the total, followed by Japan with $1.85 billion, accounting for 17.54 per cent.

Bac Ninh should strive to become Asia’s capital of electronics manufacturing and a symbol of Vietnam’s rise in the field, Prime Minister Nguyen Xuan Phuc said at the province’s 185th anniversary celebrations on February 12.

He emphasized that it should make great efforts to not only be among the provinces with the highest GDP but also present its strengths in electronics in particular and the creative economy in general.

After 20 years of re-establishment, from an agricultural province Bac Ninh is now a modern industrial province with the country’s highest economic growth.

Its gross regional domestic product (GRDP) ranks sixth in the country and its industrial production value second, while its budget contributions of VND17.8 trillion ($783.2 million) are the tenth-highest in the country.

4M agri export turnover exceeds $10.8 billion

Export turnover of agriculture, forestry, and fishery products in April were estimated at $2.9 billion, bringing the total export value in the first four months of the year to $10.8 billion, an increase of 9.1 per cent year-on-year, according to the latest figures from the Ministry of Agriculture and Rural Development (MARD).

The export value of major agricultural commodities was estimated at $5.8 billion, up 12 per cent year-on-year. Exports of aquatic products were valued at $2.1 billion, up 8.2 per cent, while key forestry products brought in $2.5 billion, up 12.1 per cent. 

Rubber saw the strongest export growth. Despite a decline of 5.4 per cent in volume, value increased 66 per cent year-on-year.

Exports of rubber in April totaled 51,000 tons worth $100 million, for 301,000 tons and $611 million in the first four months.

Fruit and vegetables is a relatively new export sector but saw a sharp increase of 32.6 per cent in value year-on-year. Value in April reached $313 million, for $1 billion in the first four months.

Wood and wooden products has remained the largest contributor to total export turnover in the sector this year. Export value in April reached $594 million, for $2.4 billion in the first four months, up 12.7 per cent year-on-year.

Seafood products was the second largest contributor, with export turnover in the first four months of $2.1 billion, up 8.2 per cent year-on-year, after April exports brought in $604 million.

Other commodities in the sector continued to decline this year, such as rice, down 7.7 per cent in volume and 6.9 per cent in value year-on-year, and cassava, down 6.9 per cent in volume and 11 per cent in value.

Some items fell in volume but increased in value over the same period of 2016, such as coffee, down 5.4 per cent but up 19.2 per cent, tea, down 16.6 per cent but up 10.8 per cent, and cashew nuts, down 13.1 per cent but up 7 per cent. 

Vietinbank Insurance targets 2017 premium revenue of $40mn

Vietinbank Insurance (VBI)’s premium revenue reached VND781 billion ($34.3 million) in 2016, an increase of 42 per cent compared to 2015 and comparing handsomely with the average of 16 per cent in Vietnam’s non-life insurance market. The achievement set the groundwork for the company to set a target of VND1 trillion ($44 million) in premium revenue in 2017.

At a ceremony announcing and honoring Vietnam’s 500 fastest-growing enterprises in 2017, held on April 12, VBI was listed No.1 in the insurance industry and 79th in the FAST500 - a list of “rising stars” in the country’s economy.

The FAST500 ranking is based on objective and independent principles and qualified scientifically in conformity with current international standards. The rankings of companies in the FAST500 are based on double growth criteria (CAGR) in terms of revenue and business performance. Criteria such as total assets, total workforce, after-tax profits, and corporate prestige in the media are also regarded as supporting factors to define the size and position of a business in the industry.

VBI is a strongly growing insurance company, with annual revenue growth of over 55 per cent during the five years from 2012 to 2016. Its growth has been consistently higher than the average in the market.

In addition to the FAST500, VBI was also honored with a “Vietnam Excellent Brand” by Vietnam Economic Times on April 8. This is the third year VBI has picked up the award.

Such prestigious rankings confirm VBI’s continuous efforts in business as well as in building and developing its brand. It also provides motivation for it to confidently expect more aggressive growth in the future.

Vissan plans to buy 200 more pigs per day from Long An

Domestic meat processor Vissan plans to buy an additional 200 pigs a day from Long An Province to support pig farmers there but at a price still far below production cost, according to a meeting on April 25 between the company and Long An authorities.

Nguyen Dang Phu, deputy general director of Vissan Joint Stock Company (Vissan), told the meeting that the company would buy 200 more pigs a day, but such pigs must be those raised in accordance with VietGAP standards.

Dinh Thi Phuong Khanh, deputy director of the Department of Agriculture and Rural Development of Long An Province, said famers have been struggling with falling pork prices in recent months. Specifically, prices of live pigs have dropped from VND31,000-33,000 per kilo (US$1.37-1.45 per kilo) before the Lunar New Year to VND23,000-25,000 per kilo at present while production cost hovers around VND37,000 per kilo.

According to Khanh, Long An Province currently has a herd of 299,000 pigs, including over 21,500 pigs raised under VietGAP standards. Since the Lunar New Year, the decrease of pork prices has caused losses of about VND40-50 billion to pig farmers in the province.

Phu of Vissan said to ensure product quality, the company will only buy pigs meeting VietGAP standards or raised under the Leafsap project. According to Phu, Vissan now needs 1,500 pigs a day.

To support pig farmers in Long An, Vissan can buy 200 pigs a day from the province at VND26,500-27,000 per kilo. Even with this price, farmers still incur hefty losses.

In addition to quality requirements, Phu required that pigs be gathered at a certain area and then transported by Vissan to its slaughterhouse. The company will complete payments for farmers seven days after the date of transaction.

With the demand poised to grow in 2017, Vissan will need up to 2,000 pigs a day and will increase by 35% in the following years. At the same time, the company’s food processing facility in Ben Luc District, Long An Province which will be operational in late 2018 will help increase pork consumption for the province.

Therefore, Long An pig farmers need to improve their rearing by applying VietGAP or higher standards to ensure the supply of quality pigs for Vissan.

In related news, the Saigon Union of Trading Cooperatives (Saigon Co.op) has announced to reduce prices of pork sold at its supermarkets and food stores by 10-20% from now to May 2 to boost pork consumption.

According to a representative of Saigon Co.op, although pork is sold at reduced prices, Saigon Co.op is still buying live pigs from farmers at unchanged prices to support them.

Software sector posts high export value

The Vietnamese software sector has obtained high exports, especially in terms of added value, said Hoang Nam Tien, chairman of FPT Software.

Tien said at the Vietnam Export Promotion Forum organized by the Vietnam Trade Promotion Agency last week that while the gross export value of certain industries may be high, the added value created locally remains limited.

Take smartphone exports for example. Vietnam exports more than US$30 billion worth of smartphones and related products a year, but the country spends US$25 billion importing components, he said.

In every US$100 of export value, only US$20-30 is generated by Vietnamese people. Even in the rice sector, a key export earner of Vietnam, the added value made by farmers is only 50%.

The software sector, meanwhile, has high added value, which accounts for 84-86% of total export revenue, Tien added.

In addition, the global market for software is virtually unlimited. FPT Software, for example, managed to earn export turnover of US$230 million last year while the global market size is estimated at US$994 billion.

According to the Vietnam Software & IT Services Association (VINASA), revenue from Vietnamese software and IT services has increased by 50% in five years, from US$2 billion in 2010 to over US$3 billion by 2015.

However, the sector faces a shortage of human resources both in quantity and quality. Software enterprises may need about 400,000 employees in 2016-2020 while all 290 universities and colleges and about 150 IT training institutions in the country can supply about 250,000 people. In addition, knowledge, professional skills and foreign language skills of new graduates remain limited.

FPT Software is targeting US$1 billion revenue by 2020. The company is expected to have 30,000 employees by 2020, triple the current number, to implement its plans.

After 17 years of development, the largest software company in Vietnam now has 10,000 employees. Each employee earn about VND550 million a year on average.

Banks want higher ATM transaction fees

A number of commercial banks have asked the State Bank of Vietnam for permission to raise the charge on ATM transactions to cover part of ATM operating costs, Nguoi Lao Dong newspaper reports.

Banks charge a maximum of VND3,000 on an ATM transaction, exclusive of VAT, according to Circular 35/2012 issued by the central bank to stipulate charges of the inland debit card service, taking effect from March 2013.

However, a deputy general director of a joint stock bank in HCMC said that banks had suffered losses because for every VND3,300 imposed on an ATM transaction, the bank receives only VND1,650 while the balance goes to the intermediary payment agency. Meanwhile, the average cost of an ATM withdrawal is VND7,000.

Meanwhile, many ATM card holders have shown disagreement with the proposal, saying they already pay many other fees when using ATM services such as messaging, billing statement, and SMS Banking.

According to experts, banks should not increase the ATM transaction fee. They can recover costs by offering more products and services or encouraging ATM card holders to pay via Points of Sale (POS) terminals.

A representative of the central bank also agreed that it is not the right time for banks to increase the ATM transaction fee because Circular 35 is still valid. Data of the central bank shows that there are about 13 banks applying a same-bank withdrawal fee of VND500 to VND3,000 a transaction.

Vietnam’s trade surplus with Cambodia down

Vietnam’s trade surplus with Cambodia has been in decline over the past three years, according to data from the General Department of Customs.

Two-way trade between the nations totaled US$2.8 billion in 2011, of which Vietnam’s shipments to Cambodia reached US$2.4 billion, and Vietnam imported goods worth around US$430 million from the neighboring country. As such, Vietnam’s trade surplus was some US$1.9 billion.

Vietnam’s trade surplus with Cambodia rose to an all-time high of US$2.4 billion in 2013, accounting for 83% of Vietnam’s total exports to the neighbor.

However, the trade surplus has been falling in the past years, to slightly over US$2 billion in 2014 and US$1.5 billion in 2016.

Two-way trade between the countries reached US$1.08 billion in the first three months of this year. Of the figure, Vietnam exported goods worth US$640 million, down 19.6% year-on-year, and imported Cambodian commodities worth US$446 million, a year-on-year rise of 29.8%.

Trade with Cambodia often makes up around 1.1%-1.2% of Vietnam’s total foreign trade.

HCM City: Construction on new eastern coach station begins

The Saigon Transportation Mechanical Corporation (SAMCO) began the construction of a new eastern coach station at a total cost of 773 billion VND (33.6 million USD) on April 26. 

Lying in Long Binh ward, district 9, Ho Chi Minh City, and Binh Thang ward, Di An commune, the southern province of Binh Duong, the station covers an area of more than 16ha, tripling that of the current station, 12.3ha of which is based in the city. 

The station is expected to serve over 7 million passengers travelling to the north, the central and the east, including 21,000 passengers each day and 52,000 during holidays. 

During the first stage, a central terminal, a parking area, a waste treatment system and technical infrastructure will be built later this year.

It will also offer other public transportation choices to passengers such as the metro line No.1, rapid bus service to Binh Duong and other buses and taxis. 

Speaking at the event, Vice Chairman of the municipal People’s Committee Le Van Khoa said the station will be connected with a high-rise parking area, repair and filling station area, trade and services area.

He asked the municipal departments and agencies to offer all possible support to the project, making it operational later this year with ensured quality. 

PAN switches from cash to stock dividends

The PAN Group, one of the leading companies in the agricultural sector, decided at its general meeting last Saturday to change its dividend payment plan for 2016 from 10% in cash to 15% in shares.

This change is ascribed to the fact that the company is quickly expanding its investment in production, leading to the higher need for capital. Besides, its business results in 2016 were lower than forecast as the sector was still wrestling with difficulties.

PAN is the parent firm that directly or indirectly owns a number of major companies in the agricultural and food sectors such as Vinaseed, Bibica, Lafooco and Aquatex Ben Tre. It is a phenomenon in agriculture and the stock market over the past three years with rapid growth and expansion through mergers and acquisitions (M&A).

After only a few years, PAN has become one of the largest agricultural and food companies in Vietnam with total assets of about VND3.76 trillion and more than 7,000 employees. PAN is making Vietnamese branded products like Huro candy, Ban Mai rice, Bon Ami cookies and Funnutz cashew nut.

Last year, PAN set up PAN Farm with chartered capital of VND1 trillion and moved its investments in agricultural companies into this subsidiary. Meanwhile, PAN Food further raised its stake in Lafooco (LAF) from 76.7% to 80.52%, in Aquatex Ben Tre (ABT) from 63.26% to 72.82%, and in Bibica (BBC) from 42.3% to 43.7%.

New projects and M&A deals to increase its ownership in food companies were carried out through PAN Food. In June 2016, PAN Food established PAN Food Manufacturing (PFM) with chartered capital of VND200 billion as a unit to gather the platforms and resources for production and R&D of its food products.

Also in 2016, PAN transferred its 80% stake in PAN Services to a Japanese partner, Nihon Housing Limited, to restructure its business, so as to focus on its core operations, agriculture and food.

Last year, the group achieved some VND2.75 trillion in revenue, meeting 83% of the plan. This is ascribed to the decline in revenue contributions of some member units under the negative weather impact and fluctuations of raw material prices.

In addition, since March 2016, PAN Services’ revenue has no longer been incorporated into the company’s balance sheet, as PAN already sold its 80% stake there, turning PAN Services into an associate company.

The 2017 general meeting passed the consolidated revenue target of VND3,080 billion, with pre-tax profit of VND320 billion and net profit of VND150 billion. Profit will mainly come from two core business operations, namely agriculture (PAN Farm) and food (PAN Food), with profit growth expected to be 10% higher than in 2016.

Dang Kim Son, former director of the Institute of Policy and Strategy for Agriculture and Rural Development, was elected as an independent member of the board of directors. Tran Quoc Khanh, deputy general director of CSC Vietnam Joint Stock Company, was elected to the supervisory board.

Many banks do not pay dividends

Under pressure from new capital injections and further restructuring, many banks have decided not to pay dividends for shareholders, says Nguoi Lao Dong newspaper.

At Techcombank, despite a pre-tax profit of nearly VND4 trillion in 2016, up 96.2% over the preceding year and higher than targeted, its leadership has decided not to pay a dividend. Its shareholder meeting has reached agreement to use the entire profit of 2016 for the long-term development of the bank, improving the capital adequacy ratio and thereby increasing the efficiency of their capital use and value added to their stock, said a Techcombank representative.

HDBank also reaped impressive business results last year with consolidated pre-tax profit of nearly VND1.15 trillion, a year-on-year rise of 46%. After many years of paying high cash dividends, HDBank this year pays a dividend of 7% in shares and 2% in bonus shares in a bid to revise up their chartered.

Meanwhile, VPBank has proposed stock dividend payment at its general meeting to raise their chartered capital by VND3-4 trillion, meeting the bank’s operations and complying with the safety ratio.

Vo Quoc Thang, board chairman of Kienlongbank, said his bank this year would focus on raising their equity, improving their finances, complying with the capital adequacy ratio as prescribed by the central bank and meeting the requirements for development in 2016-2020.

It is expected that in the second quarter of 2017, Kienlongbank shares will be traded on the UPCoM, thus the retention of dividends will increase the book value of their shares. In the long run, it will be more beneficial for Kienlongbank if a dividend for 2016 is not paid.

Vietnam spends US$338 million on fertilizer imports in Q1

Vietnam’s fertilizer imports soared in the first quarter of 2017 after a sharp decrease in 2016, reaching 1.22 million tons worth US$338 million, up 31.5% in volume and nearly 24% in value over the same period last year, said the Ministry of Agriculture and Rural Development (MARD).

Notably, January-March urea fertilizer imports amounted to 231,000 tons, double in volume over the same period last year.

China remained the largest fertilizer exporter to Vietnam, accounting for nearly 42% of Vietnam’s fertilizer import value.

One of the reasons for the sharp rise of fertilizer imports, especially from China, is that the Chinese yuan has recently weakened against the U.S. dollar, making Chinese fertilizer cheaper than domestic one.

In addition, two of the four urea production plants of the Vietnam Chemical Corporation (Vinachem) use coal as their feedstock. As the coal price has risen, production cost has edged higher as a result, leading to higher fertilizer prices and lower competitiveness.

In mid-March, the price of imported fertilizer through Haiphong was recorded at US$237 per ton, 14-18% lower than that of domestic fertilizer.

According to the Ministry of Industry and Trade (MOIT), each year Vietnam needs about 11 million tons of fertilizer and 90% of it is inorganic fertilizer. However, domestic production still does not meet the demand of domestic consumption.

Concerned over the overwhelming majority of imported fertilizer on the domestic market, some local fertilizer producers and traders have requested the Vietnam Competition Authority under MOIT to take safeguard measures against some imported fertilizer products.

The request is in accordance with the WTO’s regulations. However, some enterprises said safeguard measures against fertilizer imports will adversely impact farmers.

Most fertilizer used in Vietnam is for rice cultivation. If the fertilizer price edges up, rice prices would also increase, spelling trouble for rice exporters.

MARD is seeking comment on a draft decree on fertilizer management. According to MARD, the draft decree will attach responsibilities for fertilizer management to local authorities. At present, MOIT manages inorganic fertilizer while MARD is responsible for organic fertilizer management.    

Foreign investment disbursement up 3.2% in first four months

Disbursed foreign direct investment in 2017 was estimated at US$4.8 billion as of April 20, up 3.2% over the same period last year, according to official figures.

Meanwhile pledges to new and existing projects rose by 40.5% to US$10.95 billion, reported the Foreign Investment Agency under the Ministry of Planning and Investment.

In the first four months of the year, Vietnam granted licences to 734 new foreign-invested projects worth US$4.88 billion, a 4% drop compared to the same period of 2016, while foreign investors registered an additional US$4.36 billion in 345 current projects.

During the period, foreign investors also poured US$1.35 billion in capital contribution and share purchases.

The manufacturing sector remained the largest recipient of foreign investment, accounting for nearly 70% of total pledges, followed by the mining and wholesale and retail sectors.

The Republic of Korea remained the largest foreign investor in Vietnam with US$4.05 billion while Japan and Singapore were the second and third largest providers of invested capital with US$1.85 billion and US$1.1 billion respectively.

In the first four months, Bac Ninh received the largest share of foreign investment at US$2.7 billion.

The southern provinces of Binh Duong and Kien Giang attracted US$1.53 billion and US$1.28 billion to rank second and third respectively.  

MIC to trade 80 million shares on UPCoM

The Hanoi Stock Exchange (HSX) has given approval to the Military Insurance Corporation (MIC) trading 80 million shares on the UPCoM market, with stock code MIG.

Its first trading day is expected to be May 5 and its reference price VND10,000 ($0.44) per share.

MIC increased its chartered capital last year to VND800 billion ($35.14 million), equal to 80 million shares with a par value of VND10,000 each.

In 2016, it recorded revenue of over VND1.9 trillion ($83.46 million) and pre-tax profit of VND88 billion ($3.8 million).

It plans to see revenue of VND2.15 trillion ($94.44 million) this year, of which VND2.05 trillion ($90.056 million) will be from insurance premiums and VND100 billion ($4.39 million) from financial activities. Pre-tax-profit is estimated at VND148 billion ($6.5 million).

In September 2016, MIC sold 30 million shares, of which 28.5 million were offered to existing shareholders and 1.5 million shares to officials and employees.

The offering price of VND10,000 ($0.44) per share brought in VND300 billion ($13.18 million), with MIC raising its charter capital to VND800 billion ($35.14 million) post-issuance.

Formerly known as the Military Insurance Joint Stock Company, MIC was established at the end of February 2007 and transformed into the corporation model in 2011.

2017 plans approved at FLC Group's AGM

At its annual general meeting (AGM) on April 24 in Hanoi, FLC Group shareholders approved a plan targeting pre-tax profit of VND1.23 trillion ($54.2 million) this year on revenue of VND13 trillion ($572.7 million). All other plans were also approved.

The FLC Group had a successful 2016, with revenue from its real estate business reaching VND5.87 trillion ($258.6 million).

It posted consolidated revenue of VND6.66 trillion ($302.7 million), an increase of 11 per cent against 2015, and pre-tax profit of VND1.33 trillion ($60.4 million), up 15.4 per cent. It also contributed VND361 billion ($16.3 million) to the State budget. 

As at December 31, total assets had increased 80 per cent year-on-year to VND17.91 trillion ($814 million) while owner equity was VND8.4 trillion ($381 million). The Group plans to pay a 10 per cent dividend, comprising 3 per cent in cash and 7 per cent in shares.

“From 2017 onwards, dividends will be higher every year,” FLC Group Chairman Trinh Van Quyet told the AGM.

Under the approved plan, revenue is to nearly double this year to VND13 trillion ($591 million) while pre-tax profit is to be VND1.23 trillion ($56 million).

FLC is one of the most liquid tickers on the stock market. It raised VND1.81 trillion ($82.3 million) from share issuances to existing shareholders, increasing its registered capital to VND6.38 trillion ($290 million) on August 19.

Asked about speculation over the construction of a cable car to Son Dong Cave at Phong Nha-Ke Bang National Park in central Quang Binh province, Mr. Quyet affirmed that FLC has been researching the project at the provincial government’s request.

Due to difficult access, just 20 explorers can reach the cave on any day. “Quang Binh cannot effectively tap Son Doong Cave without better access,” Mr. Quyet noted. “No matter how beautiful the diamond may be, no one can see it if it remains lying in the sea.”

Even if FLC is permitted to build the cable car, it would not reach the entrance of the cave. The terminus would still be several kilometers away, Mr. Quyet explained. “Only when permission is granted and all papers are completed will FLC invest [in the cable car project]. Otherwise, we will not invest in it.”

Possible merger between FLC and FLC Faros

Regarding the low market price of FLC shares, Mr. Quyet said the stock is undervalued. The fall in share price can be attributed to shareholders massively selling or buying shares without caring about the company’s fundamentals, he explained, recommending that shareholders have confidence in the company’s value.

Mr. Quyet said he will continue to buy FLC shares this year. Further, he will hold negotiations with a number of funds and institutional investors who intend to make long-term investments in FLC shares so that major shareholders will together hold at least 50 per cent in the long term.

The Chairman said that FLC Group intends to merge with FLC Faros Construction JSC (ROS), in which Mr. Quyet holds nearly 70 per cent. The merger plan will be submitted for consideration at an extraordinary general meeting.

Recognizing the huge potential, FLC will continue to invest in Quang Ninh province, including a 60-story tower. It is seeking permission from Quang Ninh authorities to build a casino on Ngoc Vung Island in the Van Don Special Economic Zone before submitting the project to the government, Mr. Quyet said.

“FLC was initially assigned by the Quang Ninh People’s Committee to be the investor of this project,” he said. “With the aim of sharing the opportunity with a trusted partner, we have suggested the FLC Faros Van Don Investment and Development Company, wholly owned by FLC Faros, be the investor in the project.”

First Vietnamese young entrepreneur club in Australia debuts

The Vietnamese Business Association of Australia (VBAA) recently held a ceremony to launch a young entrepreneur and start-up club in Melbourne city.

This is the first club established by the VBAA to connect Vietnamese youths who are interested in business in Australia.

The 25-member club will act as a bridge linking young entrepreneurs in Vietnam and Australia so they can support each other in their business activities.

VBAA President Tran Ba Phuc stressed the importance of the club in supporting young entrepreneurs and awakening the start-up spirit of graduates.

Young entrepreneurs are a key force in achieving economic development goals between Australia and Vietnam, he said, adding that VBAA will work to help them.

Petrolimex aims to boost efficiency, profit in 2017

The Việt Nam National Petroleum Group (Petrolimex) will continue improving the quality of corporate management and enhancing international integration to increase efficiency.

Petrolimex announced these development plans until the end of this year at its annual shareholder meeting in Hà Nội yesterday.

At the meeting, Petrolimex announced a target for this year for total revenue of VNĐ143.21 trillion (US$6.28 billion), a year-on-year increase of 16.3 per cent; pre-tax profit of VNĐ4.68 trillion; a minimum dividend of 12 per cent; and total investment of VNĐ1.45 trillion, a year-on-year surge of 38 per cent. 

The group will focus on restructuring according to the Government’s direction and implement suggestions when listing shares on the HCM stock exchange.

Petrolimex also plans to increase efficiency in capital use and promote international integration by investing abroad and working with ministries and agencies in completing legal policies for investment and business.

For its business of petrol and oil products, the firm plans to focus on management of the source, closely follow policies on the exchange rate, enhance efficiency in capital use and increase selling volume of petrol and oil products.

The group aims to promote efficiency in protecting Petrolimex’s brand and reputation at home and abroad through co-operation with member companies, ministries and provinces/cities.

It also hopes to continue cost cutting measures to improve efficiency and will determine a schedule for implementing the use of electronic invoices.

Restructuring of non-core business will be enhanced to increase internal co-operation among member companies.

Also at the shareholder meeting, Petrolimex released the results of its production and business last year.

Petrolimex chairman Bùi Ngọc Bảo said the group’s profit in the first quarter of this year increased by two per cent against the profit of VNĐ1.3 trillion ($57 million) in the first quarter of 2016.

In its initial public offering on April 20, 2017, Petrolimex sold more than 27 million shares, totalling nearly VNĐ412.3 billion ($20 million).

The average price was VNĐ15,032 per share, with a starting price of VNĐ15,000. The highest price investors paid during the auction was VNĐ19,600.

Contech Vietnam 2017 opens, attracts foreign manufacturers

The Vietnam International Trade Fair for Construction, Mining & Transport – Machinery, Equipment, Technology, Vehicles and Materials (Contech Vietnam 2017) opened in Hanoi on April 25, attracting numerous domestic and foreign exhibitors. 

Speaking at the opening ceremony, Vice President of the Vietnam Construction Association Thai Duy Sam said the event will enable domestic firms to access modern construction equipment from foreign manufacturers. 

Outstanding construction and mining equipment exhibits come from TekMac, XCMG, UMAC, Nippon Sharyo, Almix Asia, Fujian South, Nanyang Liaoyuan while construction materials are displayed by Johs Rieckermann of Germany, Hoffen of Thailand and Poyatos of Spain, among others. 

A series of conferences and seminars will be held on the sidelines of the event, including seminars on environmental protection technology in the mining industry; and green, energy-efficient building materials. 

The event will last till April 28.

Tien Giang pledges optimal conditions for Japanese investors

The Mekong Delta province of Tien Giang will create optimal condition for foreign investors, particularly those from Japan, said a local official.

While receiving Japanese Consul General in Ho Chi Minh City Kawaue Junichi on April 25, Chairman of the provincial People’s Committee Le Van Huong also briefed the guest on the province’s development potential and advantages as well as its trade and investment opportunities for foreign investors.

For his part, Junichi said he will connect Japanese investors with Tien Giang province and provide support in the fields of common interests, including labour export, healthcare and education.

Over the past years, Tien Giang and Japan have organised a range of activities to strengthen cooperative relations in many areas, including politics, economic development, investment, tourism and labour export.

Tien Giang shipped more than 150 million USD worth of goods to Japan in 2016, up nearly 40 percent from the previous year, while importing 62 million USD worth of products.

In the first quarter of 2017, Tien Giang earned nearly 33 million USD by exporting rice, garments, aquatic products, processed fruits and vegetables to Japan. The province also spent 24 million USD on imports from Japan, mostly garment and footwear materials, handbags and machines.

Tien Giang province is now home to five Japanese projects, with a combined registered capital of 36 million USD.

VnSteel’s pre-tax profits expected to hit 200 billion VND

The Vietnam Steel Corporation (VnSteel) expects to disburse 454 billion VND (20 million USD) in investment and earn 200 billion VND (8.8 million USD) in pre-tax profits in 2017.

The information was released by chairman of the VnSteel board of directors Nghiem Xuan Da at the corporation’s annual stakeholders meeting in Hanoi on April 25.

Da said this year, VnSteel will take drastic measures to update market information, reduce product prices, completing distribution network, promote VnSteel trademark and improve its position on the market.

The corporation will also accelerate its approved restructuring plan, concentrate capital on key production and business operations and give financial support to its subordinate companies.

A report delivered at the meeting showed that last year, VnSteel’s earned 17.85 trillion VND (786.3 million USD) in consolidated net revenues, 948 billion VND (41.8 million USD) in pre-tax profits and 834.6 billion VND (37 million USD) in post-tax profits.

The corporation produced 2.07 million tonnes of steel billets and 3.99 million tonnes of steel products last year, up 25 percent and 19 percent year on year, respectively.

Its steel sales reached 4 million tonnes, exceeding the target by 13 percent and up 24 percent year on year, of which 3.15 billion tonnes are construction steel.

Steel sector expected 10 per cent growth rate

The domestic steel sector is expected to achieve a growth rate of 10 per cent in 2017, said Nghiêm Xuân Đa, chairman of the Việt Nam Steel Corporation (VnSteel)’s Executive Board.

VnSteel has planned to invest a total of VNĐ454 billion (US$20 million) while pre-tax profit of more than VNĐ200 billion.

The board said the imposing of anti-dumping duties on steel billet and long steel would continue to support the local production of construction steel.

This year, the corporation plans to enhance updating of market information while focusing on solutions to reduce production costs. It will also pay attention to purchasing input materials, completing distribution systems and enhancing trade promotion activities to support its units.

It plans to continue restructuring according to a plan approved by the Government to use capital for its core production areas. In addition, it will give financial resources to its members which have struggled to source capital for production.

Trần Tuấn Dũng, head of the VnSteel’s Controlling Department said its business results last year saw huge growth in comparison with 2015.

Its total integrated net revenue reached VNĐ17.84 trillion, increasing 4 per cent from the previous year, while total pre-tax profit in 2016 rose by 329 per cent from 2015 to VNĐ948 billion.

VnSteel’s after tax profit was VNĐ834 billion, representing a 484 per cent year-on-year increase. The after-tax profit of the parent company was VNĐ757 billion, a 570 per cent rise from the previous year.

Its basic profit per share last year was VNĐ1,117, increasing VNĐ921 in comparison with that of 2015.

Đa said steel production and consumption of most of its units reported high growth.

Its total steel billet output was 2.07 million tonnes, increasing 25 per cent from 2015.

Petrolimex aims to boost efficiency, profit in 2017

The Việt Nam National Petroleum Group (Petrolimex) will continue improving the quality of corporate management and enhancing international integration to increase efficiency.

Petrolimex announced these development plans until the end of this year at its annual shareholder meeting in Hà Nội yesterday.

At the meeting, Petrolimex announced a target for this year for total revenue of VNĐ143.21 trillion (US$6.28 billion), a year-on-year increase of 16.3 per cent; pre-tax profit of VNĐ4.68 trillion; a minimum dividend of 12 per cent; and total investment of VNĐ1.45 trillion, a year-on-year surge of 38 per cent. 

The group will focus on restructuring according to the Government’s direction and implement suggestions when listing shares on the HCM stock exchange.

Petrolimex also plans to increase efficiency in capital use and promote international integration by investing abroad and working with ministries and agencies in completing legal policies for investment and business.

For its business of petrol and oil products, the firm plans to focus on management of the source, closely follow policies on the exchange rate, enhance efficiency in capital use and increase selling volume of petrol and oil products.

The group aims to promote efficiency in protecting Petrolimex’s brand and reputation at home and abroad through co-operation with member companies, ministries and provinces/cities.

It also hopes to continue cost cutting measures to improve efficiency and will determine a schedule for implementing the use of electronic invoices.

Restructuring of non-core business will be enhanced to increase internal co-operation among member companies.

Also at the shareholder meeting, Petrolimex released the results of its production and business last year.

Petrolimex chairman Bùi Ngọc Bảo said the group’s profit in the first quarter of this year increased by two per cent against the profit of VNĐ1.3 trillion ($57 million) in the first quarter of 2016.

In its initial public offering on April 20, 2017, Petrolimex sold more than 27 million shares, totalling nearly VNĐ412.3 billion ($20 million).

The average price was VNĐ15,032 per share, with a starting price of VNĐ15,000. The highest price investors paid during the auction was VNĐ19,600.

Vinalines seeks opportunities at Sea Asia 2017

A delegation of Việt Nam National Shipping Lines (Vinalines) is participating in Sea Asia 2017, the region’s anchor maritime exhibition and leading forum for analysis and debate on key issues facing the industry.

This is the first time Vinalines has joined in the three-day event and its relevant seminars, which are organised by Seatrade and Singapore Maritime Foundation in Singapore from Tuesday to Thursday.

The exhibition covers 22,000 booths of more than 420 maritime companies and groups from countries such as Singapore, China, Japan and South Korea, as well as UAE, the United Kingdom, the Netherlands and Norway.

Addressing the exhibition, Lê Quang Trung, head of Vinalines’ market development department, said Sea Asia was a large and prestigious event in the Asia-Pacific region, where Vinalines expected to introduce its potential capacity and advantages in transportation and maritime service to customers and seek partners when it was planning to conduct equitisation.

Trung said Vinalines currently owned a fleet of ships with the total capacity of more than two million tonnes, occupying 25 per cent of Việt Nam’s total capacity. The fleet was qualified to meet the demand of goods owners, contributing to expanding trade between Việt Nam and other countries and territories.

Vinalines is managing and operating 15 sea ports in Việt Nam, or 23.53 per cent of the country’s total ports.

Speaking at the opening ceremony on Tuesday, Seatrade chairman Chris Hayman said current developments in the industry, such as the challenging offshore and marine sector and the implications of smart shipping, would also form a significant part of discussions at Sea Asia 2017.

“These trends are impacting the industry in more ways than one. The move towards smart shipping and data analytics, for example, provides opportunities for industry players to potentially cut costs and enhance productivity. At the same time, there is a need to think about the talent and skills needed in this area."

“Sea Asia 2017 will provide that critical and established platform for industry leaders from around the world to come together and share their thoughts on the current developments and how the industry can navigate challenges together moving forward,” Hayman said.

Other topics that will be discussed at the Sea Asia 2017 conferences include the importance of technical change and innovation for the industry, the future of freight markets and the opportunity for ship finance against the backdrop of a challenging market environment and more demanding regulatory framework.

Korea-ASEAN Digital Content Business Roadshow first held in Hanoi

Representatives from 60 Korean and Vietnamese businesses gathered at the first Korea-ASEAN Digital Content Business Roadshow in Hanoi on April 25 to seek trade opportunities.

The first Roadshow held by the Republic of Korea (RoK) Ministry of Science, ICT and Future Planning (MSIP) and the Korea Economic Daily at Lotte Hotel aims to create practical support and establish network for businesses from both sides and expand digital content exchange between the two countries.

Twenty Korean businesses participating in the event included broadcasting stations, Telecommunication enterprises, Mobile content and Convergent content (3D•Hologram•VR•AR) enterprises.

 korea-asean digital content business roadshow first held in hanoi hinh 1 At the show, a MSIP representative presented the development trend of the content industry and suggested fields that businesses from the two countries can collaborate such as games, animation, film and content. 

korea-asean digital content business roadshow first held in hanoi hinh 2 Meanwhile, Pham Minh Tuan, Deputy Director at VNPT-Media Software, said 50.05 million out of 94.93 million Vietnamese people use the Internet (around 53% of population). With high Internet and mobile phone users, Vietnam is a potential market for foreign investors, especially Korean businesses.  

Participants also discussed cooperation strategy in digital content and compared notes on potential collaboration fields such as animation, mobile education, broadcasting, computer graphic and film.

Vietnamese aquatic products strive to regain confidence in Europe

Vietnam is taking part in the 25th Seafood Expo Global in Brussels, Belgium, aiming to convey the diversity and quality of Vietnamese aquatic products and seafood to customers in Europe and across the world.

At the exhibition held from April 25-27, Vietnam’s pavilion with the theme “Vietnam - Asia’s home of seafood” is displaying products of 25 aquatic and seafood product processing and export companies, including pangasius, shrimp, tuna, tilapia, octopus and squid.

The pavilion has attracted many foreign businesses which came and shared experience in trading aquatic and seafood products.

In the context of a pangasius crisis in Spain and the Carrefour supermarket chain ceasing to sell Vietnamese pangasius, the Vietnam Association of Seafood Exporters and Producers (VASEP) and the Ministry of Agriculture and Rural Development held a press conference at the exhibition to provide clear information about Vietnam’s pangasius processing and exports to European partners.

In his interview with Vietnam News Agency correspondents, VASEP General Secretary Truong Dinh Hoe said that the press conference aimed to create a correct information channel to deal with the communication crisis on pangasius, aiming to increase the export of Vietnamese aquatic and seafood products to Europe.

Alfons van Duijvenbode, a Dutch consultant, said that European consumers have a bad impression of Vietnamese pangasius due to wrong information in social media.

He suggested the Vietnamese aquaculture industry and enterprises interact more with consumers to provide them with exact information about the products’ quality.

Also at the event, Vietnam held other trade promotion activities, including a dialogue for shrimp value chains and a programme for visitors to try Vietnamese seafood.

The Seafood Expo Global, the biggest of its kind in the world, drew the participation of over 1,600 exhibitors from 77 countries and territories this year. It is expected to attract more than 26,000 visitors and exporting and trading enterprises from 144 nations and territories.

BRG, Sumitomo cooperate in Nhat Tan-Noi Bai project     

Viet Nam’s BRG Group Joint Stock Company and Japan’s Sumitomo Corporation Asia & Oceania Group will partner to execute a plan to implement the Nhat Tan-Noi Bai project.

The partnership is marked by an agreement of co-operation for the development of the Nhat Tan-Noi Bai project, which was signed last week between the two groups, aiming to build a smart city north of the Red River.

The co-operation, together with financial support from the Japanese government, is targeted at studying the feasibility of using official development assistance from Japan to develop key urban infrastructure, such as roads, railways, water supply and drainage system, as well as waste water treatment, power supply, telecommunication services and broadband.

The two sides have agreed to jointly plan functional zones, in particular co-operate with Japan’s research group to optimise the current master plan of the project. The plan has been developed by BRG Group and already approved by the People’s Committee of Ha Noi.

BRG Group was assigned to be an investor to plan the Nhat Tan-Noi Bai route (Vo Nguyen Giap Street) in 2011.

The group has co-operated with the Construction Planning Institute in Ha Noi and the Viet Nam Urban Planning and Development Association to set up a council to select ideas.

BRG has worked, exchanged and revised ideas together with Viet Nam’s P&T Consultants during the project planning process. Total construction area is 2,080ha along both sides of the Nhat Tan-Noi Bai road, including four main sections with a length of some 11.7km.

The detailed planning of three sections (section 1, section 2 and section 3), with the total length of some 11.1km, was approved in early 2016.

The Nhat Tan-Noi Bai urban project is expected to make an important contribution to the economic and social development of Ha Noi, besides strengthening the close relationship between Viet Nam and Japan.

Earlier, in December, BRG Group and Sumitomo Corporation signed a memorandum of understanding as strategic partners to collaborate in real estate and retail. 

FLC Group targets double revenue this year     

The annual shareholder meeting of FLC Group was held in Ha Noi on Monday. The meeting was organised earlier than usual as FLC is in a rush to introduce its real estate projects to the market. — Photo FLC

 Property developer FLC Group is targeting integrated revenue of VND13 trillion and pre-tax profit of VND1.23 trillion in 2017, double the figures of the previous year.

This was announced at the group’s shareholder meeting held in Ha Noi on Monday. The meeting was organised earlier than usual as FLC is in a rush to introduce its real estate projects to the market.

Last year, FLC witnessed achievements in the property sector, with total sale revenue of more than VND5.87 trillion, of which, its revenue from resorts reported positive results.

FLC has brought a range of large projects into operation, including FLC Quy Nhon, the seaside ecological resort at Ho Xuan Huong in Thanh Haa Province.

In addition, it has implemented other large real estate projects nationwide, such as the second phase of FLC Sam Son, Vinh Thinh-An Tuong (Vinh Phuc), Quang Binh, Hạ Long (Quang Ninh) and Do Son (Hai Phong), with total investment of several thousand trillions of dong.

It has also been successful in its sale offer of several commercial housing projects in Ha Noi, such as FLC Complex 36 Pham Hung and FLC Twin Towers 265 Cau Giay.

Following these achievements, FLC has been listed as one of top 50 most valuable brand names in Viet Nam by Brand Finance and one of the strongest brand names of 2016.

FLC’s stock continues to be one of the most active shares in terms of liquidity and average transaction amount.

The group issued stocks to its current shareholders and mobilised over VND1.08 trillion, bringing its total chartered capital to VND6.38 trillion since August 19, 2016.

Last year, it posted integrated revenue of VND6.65 trillion, representing an 11 per cent year-on-year increase. Its pre-tax profit increased by 15 per cent from the previous year to VND1.33 trillion and the company contributed VND361 billion to the State budget.

Until, the end of last year, its total assets reached VND17.9 trillion, posting an 80 per cent increase from the previous year, while its ownership capital was VND8.4 trillion.

Accordingly, FLC plans to pay dividend at the rate of 10 per cent of its charter capital, including three per cent in cash and seven per cent in stocks equivalent to 44.7 million shares, in the second quarter of the year after receiving approval from the State Securities Commission.

“The rate of dividend payment from 2017 onwards would always be higher than the previous years,” Trinh Van Quyet, FLC’s chairman of the management board, said.

He said the group would mobilise resources to accelerate progress of its resort projects to complete the set targets. It would also negotiate to acquire other real estate projects while continuing development of industrial parks (IPs) such as Hoang Long IP in Thanh Hoa Province and Tam Duong II and Chan Hung IPs in Vinh Phuc.

Le Thanh Vinh, FLC’s general director, said each of its resorts has created jobs for some 1,000-2,000 people per year, contributing to its prestige.

He said this was the reason many large international organisations met with FLC to seek cooperation.

Answering shareholders’ question on the construction of the Son Doong cable car in central Quang Binh Province, Quyet said FLC has conducted a study and survey on the project prior to calling for investment from the locality.

“It is noted that, if deployed, the cable car certainly does not enter the cave, only reaching the area near the cave’s entrance. The terminal of the cable car is a few kilometres from the entrance", he said, adding that the project would only be implemented if it received approval from relevant parties and completed all necessary procedures.

He also said FLC Group planned to merge FLC and FLC Faros Company.

In the future, the group will invest in a casino on Ngoc Vung Island and twin towers of 60 floors each in northern Quang Ninh Province.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR