Bangkok Airways launches direct Thailand-Phu Quoc flight

The first Bangkok Airways flight from Thailand’s capital city Bangkok landed in resort Phu Quoc Island, the Mekong Delta province of Kien Giang, on October 29, carrying 63 passengers.

The direct flight takes about 1 hour 45 minutes to finish one way. 

Bangkok Airways will offer four flights weekly on Tuesday, Thursday, Saturday and Sunday, using the 70-seat twin-engine turboprop airliner ATR72-600.

The airline aims to bring international passengers to Phu Quoc from flights operated by its code-share partners, such as Air France, KLM and British Airways, with connecting flights at its Survarnabhumi base.

It launched the direct service to Vietnam’s Da Nang resort city last year.

The UK’s TUI Airways also plans to launch charter flights from the UK to Phu Quoc on November 1 while Neos of Italy schedules its first flight from Milan to Phu Quoc in December.

About 2.8 million visitors have come to Phu Quoc since the beginning of this year, bringing a revenue of nearly 2.9 trillion VND (127.7 million USD) to the island.

Coca-Cola supports local SMEs amid Industry 4.0

Coca-Cola Vietnam has recently announced it will assist local small and medium-sized enterprises (SMEs) through a mentorship program, in line with its sustainability commitment to help improve their capabilities. It recently participated in the SMEs Symposium 2017, entitled “Elevating Vietnamese SMEs to the Fourth Industrial Revolution World” and held in Ho Chi Minh City.

The symposium was an integral part of the memorandum of understanding (MoU) signed by the US-ASEAN Business Council (US-ABC) and the Vietnam Chamber of Commerce and Industry (VCCI) and Coca-Cola Vietnam. It also served as a venue to announce those companies that qualify to join Coca-Cola’s supply chain consulting program.

The symposium follows a chain of activities to achieve the objectives of the Vietnamese Government as stated at the 24th APEC SME Ministerial Meeting (SMEMM 24), organized by the Ministry of Planning and Investment in September under the theme “Improving Competitiveness, Innovation of Micro, Small and Medium Enterprises in the Age of Globalization”. Facilitating regional SMEs’ opportunities for innovation and access to information networks and global markets in the digital age is one of the four main priorities of APEC 2017.

The SMEs Symposium 2017 featured discussions on the need for Vietnamese SMEs to have the direction and resources needed to accelerate the application of technology, update or transform their business model to maximize the trends in the fourth industrial revolution (Industry 4.0), seize opportunities to cooperate, join the supply chain of American companies, and enter global markets.

“The fourth industrial revolution is increasingly affecting all countries worldwide,” said Mr. Sanket Ray, CEO of Coca-Cola Vietnam. “It is the role of multinational corporations like Coca-Cola to actively promote and enhance the confidence of SMEs, enabling them to leverage the technological advancements of this new revolution to improve business efficiency and be able to quickly join the global value chain.”

Taking into consideration the important role of SMEs in its operations, Coca-Cola has focused on creating opportunities for them to become part of its global supply chain through programs in capacity building and improving business efficiency and competitiveness.

“We believe that American multinational companies should work hand-in-hand with the government and local businesses to elevate SMEs in joining the fourth industrial revolution world,” said Ambassador of the US to Vietnam, H.E. Michael W. Michalak. “Therefore, in 2017, US-ABC and its members have remained committed to supporting the success of Vietnamese small businesses by holding three workshops and one final symposium today.”

The “Supporting SMEs in Vietnam for Sustainable Development” project is part of Coca-Cola’s effort to improve the capability and competitiveness of SMEs in the era of Industry 4.0 and in the spirit of the 24th APEC SME Ministerial Meeting. It has been implemented by Coca-Cola Vietnam in cooperation with the US-ABC since 2016 and in partnership with VCCI’s Vietnam Business Council for Sustainable Development (VBCSD) this year. The project aims to improve the performance of SMEs through in-depth training and mentoring on three topics: supply chain management, innovation, and corporate social responsibility.

Some 12 SMEs were selected to participate in VCCI’s training program and gain mentorship from consultants and experts, and eight were confirmed as being qualified to participate in Coca-Cola’s supply chain consulting program, covering areas such as packaging, logistics, distribution and marketing, communications, technology, and telecommunications. The training not only gave participants access to technology but also improved their governance, consulting, and business connections so that they can develop further.

“We look forward to supporting improvements in the performance of SMEs through in-depth training and mentoring, to help businesses better capture new business opportunities and effectively solve the challenges of sustainable development,” said Mr. Nguyen Duc Binh, Director of VCCI’s Small and Medium Enterprise Support Center.

Start-up universe forms in south-east, but faces teething troubles

A start-up environment with plenty of support for innovation is taking shape in the south-eastern region but there are many teething troubles, a conference heard in HCM City on Thursday.

“Such innovation support activities haven’t had a great impact on the start-up eco-system because [authorities] have not understood the real nature of innovation, and such activities mostly take place in big cities like HCM City and Vũng Tàu,” Mai Thanh Quang, director of the Bà Rịa – Vũng Tàu Province Department of Science and Technology, told the “Solutions to promote innovation start-up eco-system in the south-eastern region” conference.

Small and medium-sized enterprises find it hard to access capital, human resources, technology and market information due to lack of incentives and cumbersome procedures, according to Quang.

“In Bà Rịa – Vũng Tàu Province, the innovation start-up [universe] is still limited, and support activities haven’t persuaded enterprises to take up innovation.”

He pointed out that due to an insufficient innovation start-up eco-system, it is hard to persuade private companies to invest in start-up support organisations.

Incubation centres and co-working places have failed to attract them, he said.

“Connectivity between various provincial innovation start-up members in the region is very poor.”

To promote a start-up eco-system, an official from the Bình Phước Province’s Department of Science and Technology suggested building an inter-regional science and technology programme which would focus on start-up eco-systems.

“The roles of some localities like HCM City must be enhanced to transfer successful start-up models.”

He spoke about the need to build a common science and technology database for the entire region, identify key products of each locality and for the region, and petition central authorities to draft policies to promote a start-up eco-system based on the characters of the region and each province.

“Public-private partnership in assisting organisations and members in the start-up eco-system must be focused on from the beginning because of its social effectiveness rather than economic benefits.”

The start-up community is looking with anticipation at the Small and Medium Sized Enterprises Support Law, which was recently approved by the National Assembly.

However, enterprises, especially start-ups, will need more guidelines from relevant authorities to practically apply the law.

According to the Ministry of Science and Technology’s science and technology enterprises and market development department, in the south-eastern region, there are eight incubation centres for start-up enterprises and three others promoting businesses, most of them based in HCM City.

The city has also developed business ideas, examined start-up products by over 1,500 individuals and connected 3,200 individuals with consultancy experts and investors.

Over 11,000 businesses established in October

Over 11,000 new businesses have been established across the country so far this month, with a registered capital of approximately VND119.24 trillion (US$5.25 billion), up 29.6% in the number of enterprises and 48% in terms of the registered value in comparison to September. 

The number of newly established businesses in October increases 29.6% compared to the previous month.

The number of employees registered by newly established firms in October is roughly 90,000, representing a 40.5% hike compared to the previous month.

Meanwhile, more than 1,300 businesses have resumed operations, down 31.7% from a month previous.

In the first ten months of 2017, over 105,000 new businesses have been set up in Vietnam with a registered capital of nearly VND1.02 quadrillion (US$44.88 billion), up 14.6% in the quantity of enterprises and up 43.8%, with regards to the registered capital, compared to last year.

Around 90.7% of these are companies with registered capital below VND10 billion (US$440,000).

The wholesale and retail trade and repair of motor vehicles and motorcycles industry reported the largest number of newly established companies during the period, with over 37,810, followed by the manufacturing and processing sector with nearly 13,450. The real estate industry saw the biggest increase in terms of the number of enterprises at 62.5%.

The average registered capital per enterprise between January and October stood at VND9.7 billion (US$426,800), representing a 25.5% hike compared to the same period last year.

On the contrary, the number of labourers registered by newly established businesses so far this year declined 8% annually to 976,420 employees.

Festival honours Mai Son coffee in Son La

Mai Son Coffee Festival, promoting traditional features and local products, was organised in Mai Son district, Son La province on October 27.

The event offered visitors a chance to enjoy the space imbued with traditional cultural identity of the ethnic groups in Son La such as folk games, sport competitions. Meanwhile the participants also learned about the coffee products and agricultural products of Son La through booths at the festival.

On the occasion, People's Committee of Mai Son district announced geographical indication of Son La coffee.

According to Tran Dac Thang, Chairman of People's Committee of Mai Son district, said that at present, Son La province has over 12,000 hectares of coffee. In particular, coffee area in Mai Son district accounts for nearly 34%, with 4,200 hectares.Coffee plantations concentrated in nine communes of Mai Son district, including Chieng Mung, Chieng Ban, Chiang Mai, Chieng Chung, Muong Chanh, Chieng Dong, Chieng Kheo, Chieng Ve and Na Ot, he said.

Around 80% of the coffee produced in Son La is exported to the US, Japan and many other countries. Reputation of Arabica Son La coffee has been confirmed as one of the two major coffee producing regions in Vietnam.

Earlier, construction of a coffee factory has commenced at Chieng Mung commune, Mai Son district, with a total investment of over VND 48.6 billion. The factory will cover an area of more than three hectares at Mat village, Chieng Mung commune. The project is scheduled to be completed after eight months of construction.

Export of agriculture – forestry – aquatic products reaches nearly $ 30 bln

According to the Ministry of Agriculture and Rural Development, the country's export turnover of agriculture – forestry – aquatic products in October was estimated to reach US$ 2.74 billion. 

In the first ten months of the year, total export turnover of the country reached US$ 29.76 billion, increased 12.7 percent compared to the same period last year.
In the first ten months of the year, Vietnam earned US$ 2.25 billion from exporting 5.05 million tons of rice, increased 22.3 percent and 21.1 percent in volume and value respectively. 

The average rice prices for export were at US$ 442.3 per ton in the first nine months, decreased 1.6 percent compared to the same period last year. 

On the other hands, the vegetables and fruits were more positive than rice with total export turnover of US$ 2.84 billion in October, an increase of 41.2 percent compared to the same period of 2016.

China, Japan, the United States and South Korea are the top four importers of Vietnam in field of vegetables and fruits.

However, the total import turnover of agriculture – forestry – aquatic products in the first ten months of the year was US$ 22.93 billion, an increase of 14.3 percent over previous year.

On the same day, General Department of Vietnam Customs said that the total value of goods import-export was estimated at US$ 37.9 billion, a slight increase of 0.8 percent over the previous months while total export value gained US$ 19.4 billion, an increase of 0.3 percent and the total import value was US$ 18.5, increased 1.4 percent.

With the above estimation, the total value of import products is expected to reach at US$ 346.22 billion in October, 2017, an increase of 21.3 percent compared to 2016 while the total export value is expected to be at US$ 173.72 billion, an increase of 20.7 percent and the total import value would approximate US$ 172.50 billion, an increase of 22 percent.

Vietnam’s trade surplus of goods this month is estimated to hit US$ 900 million which would raise the trade surplus of the country to US$ 1.23 billion by the end of October.

Dak Lak's Coffee export turnover surges $ 88 million

The People’s Committee of Dak Lak province yesterday held a conference to summarize the coffee crop of 2016 – 2017 and deploy its tasks for the crop of 2017-2018.

The report about the coffee crop of 2016-2017 showed that the central highlands province had nearly 203,740 hectares of planting coffee (increased 380 hectares over the previous crop), the output of nearly 448,000 tons (decreased nearly 15,000 tons) and average yield reached 2.3 tons per hectare (down 26 kilograms per hectare).

Despite total coffee area and output in the 2016-2017 crop decreased, the province’s coffee output for export in this crop increased 4,000 tons and export turnover increased over US$ 88 million. The increasing in export value was due to the coffee price in this crop increased, remaining at around VND 42 million per ton for a long time.

 The coffee products have been increasing in quantity and quality annually. The province's export of instant coffee value also increased.

In the crop, domestic exporters purchased more than 58,000 tons from neighboring provinces with total value of more than VND 2.8 trillion and promoted the domestic consumption up to more than 20,000 tons with total coffee value of over VND 885 billion.

Da Lat granted Arabica coffee trademark

The People’s Committee of Da Lat City in the central highlands province of Lam Dong on October 27 held a ceremory receiving the Certificate for using the trademark “Cau Dat-Da Lat Arabica Coffee”.

The Arabica coffee is cultivated in some areas of Vietnam but the quality of those from Da Lat has been better thanks to advantageous soil and weather at the altitude of 1,500 meters.
The coffee has existed in Da Lat for more than 100 years. There are about 3,500 hectares of Da Lat Arabica coffee growing area with yearly turnover of 11,000 tons, mostly located in the communes of Xuan Truong, Tram Hanh and Xuan Tho.
U.S. coffee giant Starbucks in December, 2015 introduced Arabica coffee originating from the Central Highlands city of Da Lat which went on sale at its 21,000 stores worldwide from January, 2016.

Oct CPI gains 2.98 percent due to impacts of storms, floods

The Consumer Price Index (CPI) in October gained 0.41 percent over September and 2.98 percent year-on-year, largely driven by impacts of storms and historic floods in northern and central Vietnam earlier this month.

According to the General Statistics Office (GSO), price hikes were seen in all 11 main goods and service groups with the highest growth of 2.14 percent reported in medicines and healthcare. It was followed by fuels (1.44 percent), housing and construction materials (0.63 percent), transportation (0.61 percent), food and catering services (0.31 percent), and education (0.19 percent).

Excessive demand for foods, particularly in big cities, during the current wedding season was behind the surge besides the impacts of the disaster, said Do Thi Ngoc, Director of the GSO’s Price Statistics Department.

In addition, the Ministry of Health had issued a circular saying that people without health insurance or insured citizens who have opted for out-of-pocket payment would have to pay the full, non-subsidized cost of treatment, starting from June this year. 

The decision, slated to come into effect in HCM City and other 14 provinces from October, coupled with increase in service prices at private clinics in the Central Highlands provinces of Kon Tum and Gia Lai triggered a 2.79 percent price rise in healthcare.

Total average CPI for the first 10 months of 2017 has posted a year-on-year increase of 3.71 percent.

Core inflation that is the CPI excluding foods and beverages, energy and State-controlled services like healthcare and education, in October rose by 0.06 percent from the last month, and 1.32 percent year-on-year. 

The average core inflation in the first 10 months was estimated at 1.44 percent, lower than the previous forecast of 1.6 – 1.8 percent indicating the effectiveness of the current monetary policy.

PM: Saigon Hi-tech Park must become regional Silicon Valley

Prime Minister Nguyen Xuan Phuc urged the Saigon Hi-tech Park (SHTP) to develop itself into a Silicon Valley in the region during a ceremony marking its 15th founding anniversary in Ho Chi Minh City on October 29. 

Expressing his impression of technological industrial output in the park, which is three times higher than those in industrial zones, he said the 12th National Party Congress also highlighted the need to develop science-technology, attract technological transfer from foreign-invested enterprises and develop high-tech zones in advanced models. 

The SHTP must become a high-tech research and development centre, train a contingent of staff with leading quality, develop a smart urban area and high-tech incubator, contributing to turning Ho Chi Minh City into the first smart urban area in the country, he said. 

To achieve such goals, he asked the municipal authorities, ministries and agencies to make the Saigon Hi-tech Park a special technical-economic area which is capable of producing almost all major high-tech products and gradually switches to innovation stage. 

The SHTP was required to refine mechanisms and policies to attract high-quality personnel, even foreign scientists, and partner with the Vietnam National University – Ho Chi Minh City (VNU-HCM), universities and institutes to establish a sci-tech urban area in the northeast of the city, with the VNU-HCM and SHTP as nucleuses, towards making Ho Chi Minh City a major high-tech centre in Southeast Asia soon. 

He also called on SHTP to create a healthy start-up ecological system to facilitate high-tech manufacturing and exports. 

Hailing the city’s scheme to establish the second hi-tech area, known as science and technology park, Phuc noted that the city must build a synchronous transport system linking the park with SHTP and review legal documents to make proper adjustments. 

Founded in October 2002, the SHTP has attracted numerous domestic and foreign investors, namely Intel, Samsung, Nidec, FPT and Jabil. As of this September, the SHTP housed 130 valid projects with a total registered capital of 6.8 billion USD. Its production output is expected to surge from 500 million USD in 2010 to 12 billion USD this year and 20 billion USD by 2020. 

From 2020, it is forecast to contribute more than 1 billion USD to the city’s State budget. 

At the event, the PM presented the Labour Order, first class, to SHTP management board in honour of their dedication over the past 15 years. 

Following the ceremony, the government leader visited Intel Products Vietnam plant and launched a tree planting ceremony at Nguyen Tat Thanh University in the park.

City seeks help from private sector to achieve sustainable development goals

Startups and private enterprises in the country should work with local authorities on ways to achieve the UN’s Sustainable Development Goals (SDGs), Phạm Hồng Quất, director of the National Agency for Technology Entrepreneurship and Commercialisation Development, said on Friday.

Speaking at an international Social Innovation Summit, Quất said that in HCM City the private sector could help build a smart, friendly city that would benefit its residents.

Đỗ Nam Trung, head of the Division of Technology Management and Markets under the city Department of Science and Technology, said the city had provided incentives such as facilities and capital to startups in innovative, creative industries.

“The city has provided funds to develop business incubators, which have services for startups,” Trung added.

Caitlin Weisen, country director of United Nations Development Programme (UNDP) Việt Nam, said that in May the Prime Minister signed a National SDG (Sustainable Development Goals) Action Plan, which identified a key role for the private sector in achieving the SDGs and the 2030 Agenda.

“The idea behind SDG Entrepreneurship is for ambitious and creative entrepreneurs to look at the Global Goals as an opportunity to frame your business innovations,” she said.

The intention is to create a win-win combination where sustainable businesses generate profits while delivering social and environmental benefits that contribute to achieving the SDG Goals, according to Weisen.

Quất said that startups should be innovative in operation and development, contributing to local sustainable growth.

Startups with a business model that can help solve public challenges would attract more capital from investment funds, he added.

Startups should cooperate to build an ecosystem for sustainable startups, and connect with other enterprises and foreign companies to take part in global value chains, Quất said.

Nguyễn Thị Hồng Minh, chairwoman of Boar, Traceability Solutions and Services Joint-Stock Co, said that enterprises in the country were loosely connected and should strive to work more closely to build brand names and markets so they can compete globally.

The summit was held at HATCH!FAIR, the international technology startup exhibition and entrepreneurship conference, in HCM City on October 27-28 by HATCH!PROGRAM, a nonprofit Vietnamese initiative which connects the global startup ecosystem with Việt Nam.

At the exhibition, more than 100 businesses from technology and creative industries as well as community builders and support organisations showcased their products and services with the aim of engaging networks of customers, partners and investors.

Match-making activities in the HATCH!FAIR act as a bridge to bring business leads to angel and institutional investors and potential early-stage companies.

HATCH!FAIR is part of HCM City Innovation, Startup and Entrepreneurship Week (WHISE 2017) held from October 23-28. The aim is to showcase and promote innovation, startups and entrepreneurship throughout the city.

WHISE 2017 also featured technology exhibitions and an innovation and startup conference held yesterday by the HCM City People’s Committee in co-operation with the Embassy of Finland in Việt Nam.

Speaking at the launch ceremony, Lê Thanh Liêm, vice chairman of the city People’s Committee, said: “The city’s model of sustainable development is primarily concerned with green growth and the knowledge economy, based on innovation, technology and start-up businesses.”

Positive growth signals for Vietnamese economy

The General Statistics Office reports that Vietnam’s GDP in the third quarter increased 7.46%, a record high in recent decades. With the current growth rate, Vietnam will likely realize its annual growth target of 6.7%.

Vietnam’s GDP grew more than 6.4% over the past 9 months. In the third quarter alone, it gained a record growth of 7.46%. This strong performance is mainly due to strong growth in the agriculture, forestry, fishery, industry, and construction sectors. Processing and manufacturing saw an increase of 12.8%, the highest growth in that sector in years.

So far this year, Vietnam has earned an estimated US$154 billion from exports, up nearly 20% from last year. Committed foreign investment capital reached US$25.5 billion, up 34%.

Nguyen Bich Lam, Director General of the General Department of Statistics, said “Restructuring in the agriculture, forestry, and fishery sectors has increased the value of products in those fields and stabilized consumption of those products. The restructuring has also created confidence in production and business. 

As a result, the World Economic Forum has ranked Vietnam’s competitiveness 55th overall, up five places from last year and up 20 from five years ago.  Exports are another highlight helping the Vietnamese economy grow. In two consecutive months, August and September, for the first time, Vietnam’s export revenues exceeded US$19 billion.”

The investment and business environment has improved. The government’s bold determination to improve the business environment and cut administrative procedures has raised the number of newly established enterprises to nearly 94,000, with registered capital totaling almost US$40 billion.

But Vietnam is facing a number of challenges, including a decline of mining, a slowdown of agricultural production, slow budget collection, and slow disbursement of public investment capital. To resolve the situation, the government is trying to reduce public spending to relieve public debt.

Nguyen Dinh Cung, Director of the Central Institute for Economic Management, said “We should pay more attention to the effectiveness of public investment than the amount of investment. We should outline solutions and then allocate the funding to the most promising projects.”

If Vietnam wants to meet its annual target of 6.7%, the growth rate in the fourth quarter must be at least 7.31%.  

Khaisilk closes HCM City stores as ‘Made-in-China’ scandal widens

Two Khaisilk outlets in Ho Chi Minh City were shut down on October 27, the latest development in the mislabeling scandal that left the reputation of Vietnam’s popular silk brand in tatters.

The Khaisilk store inside the Lotte Legend Hotel in District 1, and the outlet on Dong Khoi Street, known as the company’s headquarters, were found with doors closed in the afternoon, amid the ‘Made-in-China’ scandal of the Khaisilk scarves.

Khaisilk is making national headliners after its owner, Hoang Khai, confessed earlier this week that 50 percent of his scarf stock, marketed as being made from Vietnamese silk by Vietnamese craft villages, is in fact sourced from China.

The confession came after one customer found one Khaisilk scarf bearing both the ‘Made in China’ and ‘Made in Vietnam’ labels and filed an official complaint to the company. The case was also reported and eventually went viral on social media.

Khaisilk Hanoi Main Store on Hang Gai Street, where the scarf in question was purchased, has also been closed after a market surveillance team checked the establishment and temporarily confiscated more than 50 products, including not only scarves but also ties and wallets, for investigation on October 26.

Real estate tycoon Hoang Khai, chairman of Khaisilk Group, has made no further official comment since his confession of sourcing Chinese products for sale under ‘Made in Vietnam’ labels on October 25.

The Ministry of Industry and Trade has requested a probe into the company’s product origins, whereas the General Department of Taxation on Friday also demanded an investigation into the taxpaying activities of Khaisilk.

Hoang Khai has also withdrawn from the Shark Tank Vietnam reality show to focus on resolving the crisis.

Shark Tank Vietnam is the Vietnamese localized version of the eponymous franchise of the international format Dragons' Den which originated in Japan in 2001.

The shows aspiring entrepreneur-contestants as they make business presentations to a panel of ‘shark’ investors, who then choose whether to invest.

The Khaisilk chairman has been invited to be one of the ‘sharks’ for the show and has asked to withdraw from the post, according to an official announcement of Shark Tank Vietnam late October 27.

The show has finished filming and is expected to be screened on national broadcaster VTV. It is not clear if the program will be edited following the Khaisilk scandal.

Son Ha seeks to expand southern footprint

Son Ha International JSC, a leading Hanoi-based stainless steel manufacturer, looks to take on the southern market through the recent acquisition of Toan My JSC.

After acquiring Toan My JSC, Son Ha International JSC will have an expansive network of more than 30,000 agents nationwide

Under the acquisition plan, Son Ha will distribute 18 million shares to swap for stocks of Toan My JSC’s existing shareholders. The stock swap will take place at the 1:2 ratio, with one Toan My stock swapped for two Son Ha stocks.

After the stock swap, Toan My will become a member of Son Ha and will be operating either under the limited liability company or the joint stock company model.

Explaining the move, a Son Ha representative said the company wants to expand and develop the southern market through acquiring Toan My JSC and availing themselves of the latter’s existing advantages in production capacity, distribution system, and brand name in the south.

Son Ha's total asset value touched VND2.73 trillion ($124 million) versus Toan My’s VND209 billion ($9.5 million). 

Son Ha reports VND845 billion ($38.4 million) in equity capital, eight times as much as Toan My, which stands at VND99 billion ($4.5 million).

Son Ha currently operates more than 5,000 sales agents, 112 branch offices, and 60 distributors, whereas Toan My operates more than 20 branch offices and shops in Vietnam’s major cities, with more than 600 sales agents nationwide.

Explaining why with such prevailing advantages, Son Ha had accepted this 1:2 stock swap, the company’s chairman Le Vinh Son said Toan My is a strong brand in the southern market.

Besides, Toan My’s products are mostly in the high-end segment, while Son Ha’s products are in the medium-range, which is why Son Ha decided on acquiring Toan My after completing the acquisition of another southern stainless steel brand, Truong Tuyen, in the middle of this year.

“It is not a matter of the buying price being high or low. If the deal turns out successful, it will not only help Son Ha step into the vast southern market, but also eliminate a heavyweight rival,” Son noted.

Hoa Sen Group inaugurates first phase of Hoa Sen Nhon Hoi Binh Dinh plant

HoaSen Group held an inauguration ceremony for the first phase of its Hoa Sen Nhon Hoi Binh Dinh plant and commenced construction of the second phase of the plant at the Nhon Hoi Economic Zone in Quy Nhon city, Binh Dinh province on October 28.

HoaSenNhon Hoi BinhDinh is the 11th plant of HoaSen Group throughout Vietnam and is the largest plant of its kind in the Central region.

The plant covers approximately 21.3 ha and costs roughly VND2 trillion (US$88 million). The project includes two phases in which the first phase commenced in early 2016 and has been completed.

The first phase of the plant composes of three production lines manufacturing galvanized steel, colour coating and cold rolled steel products with a total capacity of 325,000 tonnes per year.

The second phase of the plant is scheduled to include five production lines and to begin operations in late 2018. Upon the completion of the plant, it is expected to create jobs for 1,000 people.

Hoa Sen Chairman of the Board of Directors Le Phuoc Vu said that the plant will quickly meet the domestic demand for steel products in Central and Central Highlands provinces while exporting to Laos, Cambodia, Thailand, European and American countries.

Vu noted that the continuous expansion of production systems of the group has helped Hoa Sen products to enter 70 countries and territories. He added that the group would promote its exports to potential markets in India, Europe and America.

Da Nang sets IT as spearhead for economic development

With comprehensive strengths in infrastructure and human resources, Da Nang has been selected as one of the three key localities in the country to prioritise investment in IT development by 2020 with an orientation to 2025.

The information was released at a high-level seminar which discussed smart city construction and investment promotion on IT development in Da Nang, hosted by the municipal People's Committee on October 27.

Speaking at the conference, Deputy Minister of Information and Communications Nguyen Thanh Hung highly praised the outstanding results of Da Nang in IT investment and development, emphasising that Da Nang is the country’s leading model in IT application and development.

In the past five years, Vietnam IT has a growth rate of over 30%. In 2016, the total revenue of the industry reached more than US$ 67 billion, of which the electronics industry gained more than US$58 billion, the software and services industry gained more than US$8 billion and the digital content industry US$739 million.

Da Nang, up to now, has nearly 700 IT enterprises with revenue of over VND13 trillion (US$572 million) and high growth rate at 25-30% per year on average, creating jobs for about 22,000 employees.

Da Nang Software Park is one of the most effective IT parks in the country. To date, the park has more than 76 enterprises operating with more than 2,400 employees; the occupancy rate is 100%, including 35 FDI enterprises. Total investment capital is at VND1.8 trillion, revenue of IT enterprises in 2016 was at VND1.2 trillion. The main business activities at Da Nang Software Park are software and digital content export and the main export markets are Japan and Europe.

Ho Ky Minh, Vice Chairman of the municipal People's Committee said that since 2000, Da Nang has been determined to promote the use of IT in providing public services to people as well as in urban management and operation. In 2014, Da Nang completed and put into operation the main items of its e-Government Information System and issued the Smart City Plan for more effective urban management.

The seminars discussed solutions and recommendations from IT experts to perfect Da Nang IT system and promote investment in the field to shorten time to build intelligent urban area for Da Nang. (Credit: NDO)

Da Nang is the only locality in the country to build a dedicated e-government transmission network called the Metropolitan Area Network (MAN), connecting more than 90 agencies and consisting of 300km of underground optical cables with a bandwidth of 10-40 Gbps.

For nine consecutive years (from 2008 to 2017), Da Nang’s first place in Vietnam ICT Index for its ICT readiness among the centrally run provinces and cities has made it a bright spot in IT application in the administration of e-government.

To make new breakthroughs which will bring into full play its potential, Da Nang has set IT development as one of three breakthroughs in the Resolution of the city’s Party Congress tenure 2015-2020, with an aim to put the IT industry into a spearhead economic branch with fast and sustainable development, high turnover and high export value. Priority will be especially given to the development of the software industry, digital content production, manufacturing of microchips, and providing IT services with competitive advantages and export potential.

Meanwhile, the city will continue to improve its business and investment environment to support small and medium enterprises and innovative start-ups to attract more investment for the development of local IT towards transforming into a smart metropolis.

Deputy Minister Hung has said that to attract investment in IT, Da Nang needs to pay attention to infrastructure to be modern broadband meeting standards of safety, high speed, coverage and good quality. Da Nang should consider systems and databases which will serve people and businesses as essential infrastructure to serve all development needs, while developing policies to attract and reward talents, and more importantly, to create a dynamic and creative working environment for them, he added.

The seminars discussed solutions and recommendations from experts and big IT corporations to perfect Da Nang IT system and promote IT investment in the city to shorten time to build intelligent urban area.
 
Vietjet nine month profits near VND3,000 billion

Vietjet Aviation Joint Stock Company (HOSE code:VJC) has unveiled its financial results for the third quarter, and the first nine months of the year.

 In the third quarter of the year, Vietjet’s revenue and profit have seen strong growth on the same period last year, and surpassed expectations thanks to the launch of new routes and capitalizing on existing air routes.

Revenues in the aviation services surged 34.4% to VND6,142 billion compared to last year’s corresponding period. The company’s pre-tax profits also increased by 35.1% to VND1,054 billion.

As of September 30, 2017, the airline’s total assets soared by 57.39%, to VND26,289 billion, compared to the same time frame last year. 

In the first nine months of the year, the airline received an additional five aircrafts, and launched 13 new air routes, raising the number of existing routes to 73, including 38 domestic and 35 international connections. The on-time performance rate over the reviewed period reached 85.4%.

In the fourth quarter, Vietjet plans to open six new air routes, bringing the total number of new routes for 2017 to 19.

Based on the achieved financial results, Vietjet’s pre-tax profit for 2017 is estimated to be 10% higher than the plan approved at the Annual General Meeting of Shareholders.

Huge consignment of fake Converse held at Haiphong Port

Tens of thousands of pairs of fake Converse-branded shoes were recently discovered at the northern port of Haiphong.

The shoes were part of 10 containers which were transported from China and transited in Vietnam before being taken to Laos. 

The containers were sent by a Lao firm named Phong Phi Phat Company from China to a company in Laos which is a branch of Melody Logistics Ltd.Co. in Hanoi.

The Haiphong Customs Board asked Melody Logistics Ltd.Co. and shipping firms to inform Phong Phi Phat Company to work with them. However, to date, the owner of these containers has not provided any reply; so the goods have been temporarily kept at the port awaiting legal processes.

Haiphong Customs have co-operated with management agencies to continue examining the detained goods. The initial checks showed that tens of thousands of pairs of Converse-branded shoes are fake.

On October 22, the board sent a document to the Lao Embassy in Vietnam, explaining about the reason for seizing the goods.

Nike Vietnam Ltd. Co. said that the pairs of Converse shoes seized by the Haiphong Customs Board are not their firm’s product.

Vietnam holds high potential for BPO sector: report

With a talented, low-cost and growing information technology workforce, Vietnam holds high potential to develop the business process outsourcing (BPO) sector, one of the five most attractive fields to foreign investors, according to the report “Spotlight on Vietnam” just released by consulting firm PwC Vietnam.

At a press conference on the report on October 18, PwC Vietnam general director Dinh Thi Quynh Van said the BPO sector has the mandate of using information technology and the Internet to provide production and trading services for enterprises.

The BPO sector includes software outsourcing, survey, accounting, call centers, and wage calculation which international firms tend to outsource to other countries to save costs. Vietnam, with an additional 40,000 information technology graduates a year, is an ideal provider of such services. In fact, the BPO sector has grown well in Vietnam, Van added.

Apart from the BPO, the “Spotlight on Vietnam” report indicated other potential sectors which can develop significantly and attract huge investment in the coming time.

These include solar and wind power generation, upscale and luxury hotels, agriculture and food processing, and retail banking.

PwC Vietnam also recommended local enterprises enhance their competitiveness to compete with foreign rivals.

Grant Dennis, PwC Vietnam’s consulting leader, said Vietnamese companies should be ready to grasp development opportunities. It is important to build a digital strategy to enhance the customer experience and optimize business operations.

Regarding the digital technology application of Vietnamese enterprises, Johnathan Ooi, deputy general director of PwC Vietnam, said Vietnamese companies have had consulting firms build five-year technology development plans to capture domestic market share and enter the global market.

Most companies in Vietnam are aware of the power of digital technology. However, they have different ways to solve their problems with technology application, Van noted.

The “Spotlight on Vietnam” report was produced on the occasion that Vietnam hosts the Asia-Pacific Economic Cooperation (APEC) forum set to take place in the central coastal city of Danang next month.

PwC has also conducted an annual APEC CEO survey and results will be released on November 8 at the APEC CEO Summit 2017.

Wood processors have great demand for modern machinery

The demand for advanced woodworking machinery of local wood processors is rising rapidly given their strong business performance, according to industry players joining the 12th International Woodworking Industry Fair (VietnamWood).

Held by Vietnam National Trade Fair and Advertising Company, and Yorkers Trade and Marketing Service Co Ltd, the fair was launched on October 18 at the Saigon Exhibition and Convention Center in HCMC’s District 7 and will wrap up this Saturday. The annual event is attended by more than 320 exhibitors from 25 countries and territories.

Huynh Quang Thanh, chairman of the Binh Duong Furniture Association, said the business performance of wood processors in Binh Duong Province has fared well, achieving 12-14% growth, above the nation’s average. Therefore, many companies plan to invest in modern and automatic woodworking machinery.

He added a hike in workers’ wages is also another reason for them to do so. The move is to reduce their staff, expand their production capacity, and improve their competitiveness.

Cao Duy Tam, director of Vetta Co Ltd, said his company has supplied woodworking machines imported from Taiwan, China, Japan, Italy and the United States for years. The orders with his company had risen by 20-30% in the year to September, he said.

He added the global demand for these products is forecast to increase. Wood processors should purchase new machinery to enhance product quality and reduce production cost.

“In addition to efforts to scale down the workforce and lower production costs, investing in modern technologies also helps enterprises enhance their capacity and save their production materials,” he stressed.

Dam Minh Nghia, business director of Riken Vietnam Co Ltd, said woodworking machinery sales of the company may rise by 50% this year, as local wood processors have seen a strong increase in export orders, and Chinese counterparts have gradually shifted their production from their homeland to Vietnam.

According to some enterprises, domestic wood processors used to purchase equipment of average quality and lifespan from Taiwan and China, or those manufactured locally, but some have lately shifted to purchasing machinery from Japan and European countries in order to satisfy their demanding customers’ quality requirements.

Ingo Bette, a representative of German Woodworking Machinery Manufactures, said Vietnam has become the leading producer of wood products in Southeast Asia, and the largest buyer of Germany’s woodworking machinery.

Bette noted besides simple wood products, local wood processors have been producing furniture of high value, so they have heavily invested in advanced technologies. Therefore, he predicted the local furniture sector will sustain the strong momentum in the coming years.

The demand for importing wood among local processors is also on the steep rise. Tripp Pryor, international program manager at the American Hardwood Export Council, said 30 members of the council have joined the fair, as they have seen the local sector achieve significant growth.

He said the export of American hardwood to Vietnam had grown by up to 18% in the first half of this year.

Earlier, the Handicraft and Wood Industry Association of HCMC (HAWA) projected Vietnam’s outbound sales of wood and wood products will reach around US$8 billion this year.

Tourism sector mulls ways to realize this year’s target

The tourism sector is finding ways and calling for strong support from the Government, especially in terms of publicity and launch of new services, to realize the high target of 13 million foreign arrivals this year, insiders said.

To obtain the target, the sector will have to attract 1.2 million international tourists a month in the rest of the year. Promotions and services should focus on regional markets, said Nguyen Quy Phuong, head of the Travel Department under the Vietnam National Administration of Tourism (VNAT).

The Ministry of Culture, Sports and Tourism on Tuesday worked with some travel companies to discuss ways to woo more tourists in the rest of the year. The sector needs an additional VND15 billion (US$0.66 million) to conduct tourism promotion programs.

The ministry also proposed the Government and localities create favorable conditions to support airlines to launch flights to bring tourists to Vietnam, and unilaterally offer visa exemptions and e-visas for tourists from more nations.

Promotion programs should be carried out in Southeast Asia and Northeast Asia for which Vietnam has offered a unilateral visa waiver.

Phuong of VNAT said these two regions are in close proximity to Vietnam, so promotion programs would have quick effects. The tourism sector would continue introducing Vietnamese tourism products, and coordinate with travel companies and localities to roll out new products.

Phuong told the Daily on October 18 that discounts and preferential policies should be offered to lure more visitors. Currently, more than half of international tourists to Vietnam are from Northeast Asian markets such as China, South Korea, Taiwan and Japan.

Haiphong, Quang Binh and Phu Yen provinces have connected transport and tourism firms, and subsidized air services to woo tourists. The tourism sector expects to launch more flights to key tourist attractions such as Phu Quoc and Cam Ranh, Phuong added.

In the first nine months of this year, August saw the largest number of foreign arrivals, at more than 1.2 million, while the number in other months ranged from 940,000 to one million. More international tourists tend to visit Vietnam in the peak season in October and November and the number of foreign guests will go down slightly in December.

The sector had earlier set a target for 11.7 million foreign arrivals this year. However, the Government has decided to raise it to 13 million, or even 15 million, to contribute to economic growth.

Former MHB chairman prosecuted

Prosecutors on Tuesday completed legal proceedings against Huynh Nam Dung, former chairman of Mekong Delta Housing Development Bank (MHB), and 16 other accomplices for alleged violations that led to VND5 trillion losses, Dan Tri news website reports.

According to the Supreme People’s Procuracy, Dung and his accomplices are charged with abuse of power and lack of responsibility that caused serious consequences for the Bank for Investment and Development of Vietnam (BIDV), MHB and Mekong Housing Bank Securities Company (MHBS).

Dung’s accomplices include former MHB general director Nguyen Phuoc Hoa, former MHB deputy general director Bui Thanh Hung, former MHB chief accountant Nguyen Van Thanh, former MHBS general director Lu Thi Thanh Binh, former MHBS deputy general director Dang Van Hoa.

Between 2011 and 2014, Dung and Hoa held meetings with members of the Asset-Liability Committee of MHB and agreed to transfer VND4,975 billion (some US$220 million) from MHB to MHBS under the form of investment in G-bonds.

However, Binh of MHBS sent VND3,375 billion to branches of this company to earn VND45 billion in interest. Meanwhile, Dung and accomplices at MHBS used VND1,558 billion to buy G-bonds from MHB through intermediary companies. This action helped Dung pocket VND460 million and his accomplices earn hundreds of millions of dong, and caused a loss of over VND349 billion for MHB.

Binh also opened three accounts for illegal bond trading, leading to a loss of VND108 billion to MHB.

According to Dan Tri news website, the plaintiff in this case is BIDV because MHB was merged into BIDV in 2015.

State enterprises likely to get nod for arms trade

The Prime Minister would have the jurisdiction to allow certain State-owned enterprises to trade in military weapons, equipment and technologies, according to a draft decree on military weapon trade prepared by the Ministry of Defense.

According to Dan Tri newspaper, the Ministry of Justice is going to review the draft decree on conditions for trade in weapons, technologies, equipment and components used for national defense and security purposes.

Clause 6 of the draft decree stipulates that the Prime Minister would have the jurisdiction to allow State-owned enterprises whose establishment is approved by the Prime Minister to trade in military weapons, equipment and technologies.

The Ministers of Defense and Public Security would have the jurisdiction to allow State-owned enterprises managed by these ministries to trade in military weapons, equipment and technologies. The ministers shall be allowed to approve purchase contracts, agreements, and plans of production of weapons and equipment used for national defense and security. 

Enterprises will not be allowed to purchase, sell, import or export military weapons without the Prime Minister’s permission. Besides, such weapons, equipment and technologies must be used for national defense and security purposes only, and the trade must be in line with the international treaties to which Vietnam is a signatory.

Military weapons, equipment and components will have to meet national standards and have sufficient information on the country of origin, year of manufacture and date of expiration, type, code and label.

According to Clause 9 of the draft decree, enterprises allowed to trade in military weapons would be required to have equipment, technologies and production tools meeting technical standards, and have experts, engineers and employees proficient in the field.

Sweden sees VN as potential market for its eco-friendly wood materials

Sweden’s wood materials industry sees Vietnam’s wood processing industry as a potential market for its eco-friendly, competitive and sustainable materials, speakers at a seminar said.

“Sweden will be a potential source of additional materials for Vietnam, with the import value currently increasing,” said Huynh Van Hanh, vice chairman of the HCM City Handicraft and Wood Industry Association (HAWA).

Hanh spoke at a seminar held in the city’s District 7 this week as part of the 12th Vietnam International Woodworking Industry Fair at the Saigon Exhibition and Convention Centre (SECC) from October 18-21.

About 50 Swedish sawmills suppliers, Vietnamese wood producers and many others attended the seminar.

Pereric Hogberg, Sweden’s Ambassador to Vietnam, said that Sweden’s sustainable forest management maintained a balance between economic wood production and respect for wildlife, outdoor recreation, employment and local interests.

“I am very impressed by Vietnam’s fast-growing wood processing industry, and there is a large potential for Swedish wood suppliers to supply high quality and sustainable raw materials to Vietnamese manufacturers,” she said.

Sweden, the world’s third largest exporter of sawn wood, exports 13 million of total 18 million cubic metres of sawn and planed timber.

Japan and China are the biggest markets for the Swedish sawmill industry.

Vietnam is the fifth largest exporter of wood worldwide, the second largest in Asia, and the largest in Southeast Asia. Its key export markets are the US, China, Japan and the EU.

Vietnam’s furniture industry is growing steadily, resulting in increased demand for materials, according to Hanh.

Vietnam’s exports were estimated at 7 billion USD last year and are expected to increase to 10 billion USD by 2020. Last year, about 1.7 billion USD of wood materials were imported for production needs.