BIM Group scoops up international property awards

Developer BIM Group bagged two international property awards for Phu Quoc Marina and Regent Phu Quoc Resort and Villas at the Asia Pacific Property Awards.

The awards took place in Bangkok on May 25 and 26.

Phu Quoc Marina was recognised as an award winner in the mixed-use development category, while Regent Phu Quoc Resort and Villas bagged an award in the new hotel construction and design category.

Phu Quoc Marina, with initial investment of US$180 million, covers 155ha on Long Beach, where leading resort and hotel brands have gathered to make it a luxury tourism destination on Phú Quốc Island. Regent Phu Quoc Resort and Villas, a super luxury resort located at Phu Quoc Marina, will be run by one of the world’s leading hotel and resort operators -- Regent Hotels and Resorts.

BIM Group’s InterContinental Phu Quoc Long Beach Resort and Residences earned an award in the hotel architecture category in 2016.

A representative from BIM Group said: “The awards are evidence of our reputation. We want to build not only quality property developments, but also build value for the community.”

The International Property Awards, launched in 1995, are one of the largest, most prestigious and widely recognised awards worldwide. The awards are split into regions, covering Africa, Asia Pacific, Arabia and Canada, as well as Caribbean, Central & South America, Europe, United Kingdom and the United States. 

More than 20 Vietnamese businesses join Computex Taipei 2017

Twenty nine representatives from 20 Vietnam information and communication technology (ICT) businesses take part in the Computex Taipei 2017 which opened on May 30 at Taipei Nangang Exhibition Centre in Taiwan.

Vu Anh Tuan, general secretary of Ho Chi Minh City Computer Association (HCA) said Computex Taipei is one of HCA’s key promotion events.

This year, HCA members will focus on business-to-business activities in seeking partners, doing software and hardware outsourcing and applying the Internet of Things to meet market demands, said Mr Tuan.

Addressing a press conference on May 29 to introduce Computex Taipei 2017, Walter Yeh, President and CEO of the Taiwan External Trade Development Council (TAITRA) said Vietnam is one of 10 key global markets for trade promotion of TAITRA and the Taiwanese ICT producers community as well.

Hong Kong businesses keen on Vietnam infrastructure projects

Around 40 Hong Kong infrastructure investors and experts have made a fact-finding tour of Ho Chi Minh City.

Vincent HS Lo, Chairman of the Hong Kong Trade Development Council, said Hong Kong businesses have paid much attention to Vietnam’s infrastructure development, especially railway, road, airport and seaport projects.

At an earlier meeting in Hanoi with representatives of the Ministry of Transport, Hong Kong businesses showed their keen interest in Vietnam’s north-south highway project which they said will help facilitate more investment projects in the country.

Hong Kong businesses are also interested in large real estate projects in cities. Johnson Choi, Executive Director of Sunwah group said the group has invested in many projects in Vietnam, especially housing projects.

Vietnam is considered a potential real estate market in Asia, said Mr Choi.

According to the Foreign Investment Agency - Ministry of Planning and Investment, Hong Kong had been the sixth largest foreign investor in Vietnam up to the end of the first quarter with over 1,200 projects and a registered capital of US$17.57 billion.

Around 11,000 new companies set up in May nationwide

There were around 11,000 newly established enterprises in the country with total capital of VND 119.2 trillion($5.2 billion), said the General Statistic of Vietnam .

The figure shows an increase of 9.3 percent in the number of enterprises and an increase of 17.8 percent in the registered capital compared to same period last year. 

Averagely, the registered capital of a company is VND10.9 billion, representing a year-on-year rise of 7.8 percent.

Generally, in the first five months of this year, the country has 50,534 new enterprises with total capital of VND485.6 trillion, a year-on-year rise of 12.9 percent in the number of companies and of 39 percent in the registered capital.

It will be VND1,196 trillion including VND710.8 trillion of additionally registered capital of enterprises in first five months in the country. 

Moreover, 13,458 firms resumed operations in May, an increase of 3.5 percent compared to same period last year, bringing total number of companies to nearly 64,000 firms during first five months.

The number of laborers in the registered companies in the five months was more than 521,000

In five months, the number of firms that have either suspended or shut down operations surged by 0.9 percent compared to same period last year. 

ABBank launches new international visa cards for enteprises

The An Binh Commercial Joint Stock Bank (ABBank) has launched new international visa debit and Platinum credit cards for enterprises and organizations in Vietnam, with new benefits and preferences for users.

The EMV Chip technology in the new cards increases the information security of cardholders.

The International Visa Debit Card allows businesses with a deposit account at ABBank to receive interest on the balance of deposits in the account. The card is accepted for payments and withdrawals at ATMs in Vietnam and around the world. Customers therefore need not exchange foreign currencies while traveling abroad and can pay their bills in the country they are in.

The International Platinum Visa Debit Card is available for prepaid business customers, with up to 45 days interest-free to a maximum of VND5 billion ($220,000), which can act as good back-up capital. When opening this card, customers are entitled to a global travel insurance package with coverage of up to $500,000 and are entitled to VIP lounge access at airports, preferential green fees at world class golf courses, and preferences on buying cars, yachts, etc.

From now to August 26, ABBank is implementing a program, under which, when a new card is open, enterprises will have the annual fee of VND1,000,000 ($44) for credit cards waived and receive a refund of VND300,000 ($13) on debit cards, on the condition that they use the card within 30 days of successful activation.

With 24 years of experience in Vietnam’s banking and finance market, ABBank is considered to have seen sustainable and stable development. It has an extensive network of 118 transaction offices located in 28 cities and provinces nationwide. Its development orientation is to become a retail bank and be friendly with the community. A friendly, professional and dedicated attitude from staff is the criterion and guide in ABBank’s activities. In choosing the business motto of “Give solutions - Get smiles”, ABBank wishes to become a reliable credit institution that provides financial solutions effectively and wins smiles and satisfaction from customers after each transaction.

Huy Vietnam invests in two food facilities

The Huy Vietnam Group has invested in two food processing facilities in the north and south of Vietnam, with capital totaling $40 million.

The Huy Vietnam Food Processing Factory will be located at the Hai Son Industrial Zone in the Mekong Delta’s Long An province on an area of 20,000 sq m with investment of $26 million.

The northern plant will be at the Ninh Hiep Industrial Zone in Hanoi’s Gia Lam district on an area of 6,000 sq m and with investment of $14 million.

Huy Vietnam said both facilities will have modern equipment and technology from Japan to meet international standards in the food processing industry and produce 1 million meals for its restaurants in Vietnam each day and well as food for export.

The group will employ 1,000 people in Long An and 500 in Hanoi.

Construction of both began this month, with the Long An facility to be completed by May 2019 and the Hanoi facility by January 2018.

Founded in 2006, Huy Vietnam has grown rapidly and become the largest self-managed, local Vietnamese food processing company in Vietnam.

It now operates about 200 restaurants in prime locations in Ho Chi Minh City, including five famous brands: Mon Hue, Pho Ong Hung, Com Tho Chay, Great Banh Mi & Cafe, and Pho 99, with a large number of regular customers.

Hyundai RNC Ha Tay to pay $222,200 compensation

Hyundai RNC Ha Tay, the developer of Hillstate Residential and Trading Complex in Hadong district of Hanoi, was ordered to pay VND5 billion ($222,200) to its customers.

In the latest court held on May 26, Hyundai RNC Ha Tay was ordered by the court to pay this fine to compensate customers for the delay on the villa hand over and arbitrarily terminating the contract.

According to the purchase agreement signed on June 24, 2010, Duong Thi Mai Thuy bought a 118.8-square metre villa from Hyundai RNC Ha Tay with the value of VND11 billion ($488,888).

Thuy has paid 70 per cent of the property value to the developer already, while the rest was agreed to be paid after the villa is handed over.

On August 11, 2011 the developer had announced to the buyer that it would hand over the villa on October 15-23, 2011 and the buyer must pay the remaining sum between October 24 and 30.

However, Thuy discovered that the developer had deviated from design they agreed on and requested them to revert the changes. Her request had not been met and Hyundai RNC Ha Tay handed over the villa to Thuy on December 15, 2013.

In response to the developer breaking its agreement, Thuy decided not to pay the remaining 30 per cent. Hyundai RNC Ha Tay therefore decided to terminate the contract and Thuy turned to the court.

On March 30, 2016 the Hadong People’s Court announced that Hyundai RNC Ha Tay’s termination of the contract was illegal and ordered the company to pay a total compensation of VND6.3 billion ($280,000) to Thuy.

Hyundai RNC Ha Tay appealed to the Court of Appeals, which promptly ordered Hyundai RNC Ha Tay to continue its contract with the buyer and finish all items of the villa as originally committed.

Due to the delay in handing over the property, it had to pay a compensation of VND5 billion to the buyer. The buyer, in turn, was ordered to pay the remaining 30 per cent of the villa’s value.

Hyundai Hillstate is the first real estate project of South Korean Hyundai Group in Vietnam and overseas.

Hyundai Hillstate is a high-end apartment and villa complex which got off the ground in 2009. It covers 4.67 hectares and has the total investment capital of $200 million. Hyundai Hillstate comprises of two main components with 928 apartments in five buildings and 100 villas, all of which have already been sold out. 

Experts warns of job losses through technology

Major technological innovation promises huge advances but also high unemployment.

During a recent conference about the fourth industrial revolution held by the FSB Institute of Business Administration, Can Van Luc, director of BIDV Training School, said the employees in the banking sector were the most likely to lose jobs because of rapid technological advances.

"Automation and artificial intelligence will replace the workforce," he said.

He went on to say that some 47% of customers in Vietnam use online banking.   

However, many experts said there was no choice but to participate. Truong Gia Binh, Chairman of FPT Group said the current changes were much bigger and would affect all aspects of life, from health care to daily production to the power supply, telecommunication and aerospace manufacturing sectors.

"In a short time, all vehicles may be automated," he said.

Local enterprises were warned to be prepared so not to be left behind. Binh also said the changes were happening at roughly the same time so if Vietnamese firms were fast and good enough in their investments, Vietnam's position in the world may be different after the so-called revolution.

According to a survey conducted with 2,000 businesses by the Hanoi Small and Medium Enterprises Association, 85% expressed interests and concern. 55% thought Vietnam would be hugely affected, 23% said it would have a moderate impact, 11% a small impact and 10% no impact.

79% of firms said they had no idea what to do about the challenges. 55% were researching developments, 19% were making plans and 12% were implementing their plans.

Can Van Luc, director of the BIDV Training School, said firms should analyse the potential impact of the changes and start developing plans.

European firms stay positive on Vietnam’s business climate

The Business Climate Index (BCI) for  the first quarter of this year released by the European Chamber of Commerce in Vietnam (EuroCham) on May 29 showed European firms’ positive expectations towards Vietnam.

The index hit 78, seven points below the fourth quarter of 2016, but this does not mean that businesses are under alert or will not continue to explore such a high-potential economy as Vietnam, said EuroCham Chairman Jens Ruebbert. 

The survey showed most businesses (90 percent) are either maintaining or increasing their investments in Vietnam, adding that inflation is no longer a concern for them.

It also indicated about 67 percent of respondents described the business situation in Vietnam as “very good” or “good”.

In addition, about 20 percent of EuroCham members believed regulatory reform has improved.

According to Ruebbert, enterprises also expressed their wish for more transparency, competitiveness, sustainability and a better trained workforce.

Hanoi has nearly 10,000 new enterprises in five months

Up to 9,725 new enterprises have been established in Hanoi during the first five months of this year, with a total registered capital of 73.4 trillion VND (3.23 billion USD), year-on-year rises of 13 percent and 5 percent, respectively.

The figures were revealed during a meeting between Chairman of the Hanoi People’s Committee Nguyen Duc Chung and leaders of municipal departments on May 29, where they discussed the city’s socio-economic performance in May and the first five months of 2017.

In May, the city’s production and business environment remained stable. Total budget collection reached 81.24 trillion VND (3.57 billion USD), up 13.2 percent year on year.

Hanoi launched 123 public-private partnership (PPP) projects with a total investment of 307.8 trillion VND (13.53 billion USD).

Meanwhile, 718.9 million USD in foreign direct investment (FDI) was poured into the city, making up 23.9 percent of the city’s annual target.

Addressing the meeting, Chung pointed to some targets that the city has failed to reach and urged for drastic measures for the rest of the year to hit these goals.

He stressed the responsibility of municipal departments’ leaders for failure to complete the targets.

Regarding administrative reform, he asked departments to be ready to send a working group gathering their representatives to the one-stop section in the city People’s Committee headquarters to deal with administrative procedures from June 1.

The city’s leader also requested agencies to exert more efforts to tackle the illegal occupation of pavements and littering, and ensure power supply and design drainage plans for the summer.

Municipal authorities should also finalise preparations for high school graduation and university entrance exams slated for early July.

Vietnam’s fertiliser imports surge in five months

Vietnam spent 547 million USD on importing 2.01 million tonnes of fertiliser in the first five months of this year, up nearly 32 percent in volume and 24 percent in value compared to the same period last year, Lao Dong (Labour) newspaper reported.

The country imported 427,000 tonnes of fertiliser, worth 119 million USD in May alone.

The strongest increase was seen in urea imports, up 22 percent in volume and 32 percent in value from 2016 to reach 230,000 tonnes and 60 million USD.

Vietnam mainly imported fertiliser from China, Russia and Indonesia.

In 2016, Vietnam imported 4.16 million tonnes of fertiliser, valued at 1.1 billion USD, down nearly 8 percent in volume and 22 percent in value compared to 2015.

Fertiliser management is under the control of two ministries, with the Ministry of Industry and Trade managing inorganic fertiliser and the Ministry of Agriculture and Rural Development managing organic fertiliser.

Vinacomin, Japan’s oil group promote production capacity

The Vietnam National Coal-Mineral Industries Group (Vinacomin) and the Japan Oil, Gas and Metals National Corporation (Jogmec) on May 29 agreed to enhance production capacity and safety.

Under the one-year project, training will be provided for engineers from Ha Long Coal Company and Ha Lam Coal joint Stock Company in exploitation technology and technical safety.

The two sides will also collaborate to hold conferences and offer technical guidance on mine and gas management, anchor drilling, examination and furnace maintenance.

At the signing ceremony, Vinacomin Deputy General Director Nguyen Hoang Trung said that the project is significant to advance coal mines and modernise exploitation techniques.

Vinacomin has collaborated with Jogmec in various programmes, which have brought practical benefits to the group, Trung added.

First int’l exhibition on horticulture, floriculture to open in HCM City     

The first International Exhibition & Conference for Horticultural and Floricultural Production and Processing Technology in Viet Nam (Hortex Vietnam) will be held in HCM City in March next year.

The event will provide an ideal platform for domestic and foreign players in the horticultural and floricultural sector to exchange information and explore business opportunities.

HortEx Vietnam 2018 is expected to attract around 120 local and international exhibitors.

On display will be equipment and technologies for the vegetable, flower and fruits industries, including green buildings, preservation and cooling, sorting and packaging, gardening tools; equipments for cultivation, post-harvest and processing of fresh vegetables; and flowers, ornamental plants, plant nutrition, garden and landscape architecture.

The exhibition will also include professional seminars and a business-to-business matching programme, said Kuno Jacobs, managing director of Nova Exhibitions B.V, one of the event’s organisers.

The organisers will provide support to potential buyers and farmers from other cities and provinces to visit the exhibition.

Held by Minh Vi Exhibition and Advertisement Service Co., Ltd and the Netherlands’ Nova Exhibitions BV, the exhibition will be held at the Saigon Exhibition and Convention Centre from March 14-16.

It is expected to welcome around 3,500 trade visitors across Viet Nam and other countries.

Horticulture and floriculture are one of the most promising sectors of the Vietnamese economy. According to experts, Viet Nam has the potential to become one of the world’s largest flower exporters, according to the organisers.

In addition, the country’s fruits and vegetables exports have enjoyed strong growth in the past years, with an average rate of 26.5 per cent a year, from US$439 million in 2009 to nearly $2.5 billion last year, Dr. Nguyen Huu Dat, board member of the Viet Nam Fruits and Vegetables Association, said.

The figure reached $1.36 billion in the first five months of the year, a year-on-year increase of 138 per cent, he said. 

BCI awards given to Vietnamese     

Asia’s leading construction solution provider BCI at a ceremony held on Friday in HCM City gave awards to the top 10 Vietnamese architectural firms and property developers.

The portfolios of the architecture firms contain US$4.9 billion worth of property construction projects which are expected to start this year.

The BCI Asia Top 10 Architects for 2017 were given to Alinco Ltd, Baumschlager Eberle Asean Co Ltd, DAC - Vietnam Architectural Design and Consultancy Company, Dark Horse Architecture Co Ltd, GK Archi Co Ltd, HTT Group – Hồ Thiệu Trị Architect & Associates, NQH Architects Co Ltd, Plan Add Vietnam Co Ltd, PTW Vietnam Co Ltd and TTA-Partners Construction Architecture JSC (TTAP).

The BCI Asia Top 10 Developers Awards for 2017 were presented to Dat Xanh Real Estate Service and Construction JSC, FLC Group, Hung Thinh Real Estate Business Investment Corporation, Novaland Investment Group Corporation, Phat Dat Real Estate Development Corporation, Phu My Hung Development Corporation, Sun Group, Tan Hoang Minh Group, Viet Hung Urban Development & Investment Company (VIHAJICO), Vingroup.

The awards aim to encourage socially responsible architecture and serve as a platform for domestic and international networking by elite architecture firms, property developers, manufacturers and service providers.

Around 150 architects, designers, senior executives and leading professionals in the building and property development industry were presented with the FuturArc Green Leadership Award and FuturArc Prize 2017.Currently in its tenth year, FuturArc Prize, Asia’s foremost Green building design competition, has been established as a renowned platform where innovative ideas pour in from professionals and students globally. Six winning designs have been selected this year for residential or commercial developments in an Asian city.

There are two winners and two merits from Viet Nam.

Bui Quang Vu and his team has won the first place for their Professional entry titled Urban Plug-In Module, which details the stitching together of landscape, building and hydrology at the scale of building elements, architecture, neighbourhood and city.

The second place in the Student category goes to Tran Duy Tan’s team for The Forgotten Network, with the concept of industrial-scale urban farming that utilises unused water towers.

Bui Duong Khang Kieu and his team received a merit award in the Student category for their entry You Feed Me To Feed Your Future, which offers a restored lake environment with a symbiotic relationship between humans, commercial buildings and space.

Nguyen Quoc Tuan’s team also received merit in the Student category. Their project, Cost to Make More, recognises the need for clean water supply, especially around industrial areas in Bangladesh. Their design seeks to create a model that is able to alleviate the contaminated water situation, as well as improve the lives of workers and the sustainable development of the city.

An independent panel of international jurors sat through a thorough review process and selected a total of six winning teams (three from the Professional category; three from the Student category) and 10 merit recipients (in teams).

Ceremonies for the 13th BCI Asia Top Award were also held in Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and Thailand. 

Overnight rate at three-month low     

Inter-bank interest rates last week slipped 0.83-1.03 percentage points against the previous week because of good liquidity, pushing Friday’s overnight rate to a three-month low of 2.97 per cent.

The one-week, two-week and one-month rates also dropped to 4.08 per cent, 3.3 per cent and 3.65 per cent per year, respectively.

With good liquidity in the inter-bank market, the central bank last week withdrew around VND2.57 trillion (US$112.71 million) via open market operations.

Good liquidity also had a positive impact on two bond auctions held last week. The State Treasury and the Bank for Social Policies successfully sold bonds worth around VND5.86 trillion and VNĐ800 billion, respectively, at lower yields than the previous auctions.

Farm sector needs market research     

The State needs to establish agencies specialising in the study of the market, so as to reduce risks of oversupply or shortages in farming products, said Dang Kim Son, former head of the Institute of Policy and Strategy for Agriculture and Rural Development.

Those organisations must operate efficiently and closely follow market trends, production and business, he said. Research results made by the organisations must be made public to help farmers and enterprises actively decide on investment levels, reductions or expansions in production, and changes in product ranges, avoiding difficulties ue to poor forecasts on supply and demand.

“Those agencies should include both State and private research. The State’s research will provide basic non-profit information for farmers, while enterprises may collaborate on research that could bring profit to promote efficiency in market research activities,” Son said.

Vietnam News Agency quoted Son as saying that Viet Nam does not have an information system for farmers and organisations specialising in market research.

“The farmers need the State to help them study the market and provide information about directions to be taken, such as standards, policies and distribution systems. When the State provides full and up-to-date information for producers and traders, they will be able to make reasonable decisions on production and business to reduce losses for them and the economy as a whole,” Son said.

At present, agricultural production is not connected to the business side, leading to situations of oversupply or shortages for farming products and strong drops in price, he said.

Meanwhile, the management of State agencies has not changed following market demand, he said. They have focused on the development of supply but not on researching the state of the market.

Ministries, sectors and localities have targets on growth of output and expansion of production but have not paid attention to value, income, efficiency and sustainable development.

They have staff with skills and knowledge on production, but not business ability and knowledge of market development, he said.

State agencies should encourage farmers and enterprises to produce certain products, but should not interfere in production decision. The production decision must be dictated by the supply and demand side of the market, he said. 

Hibiscus wine project planned for Da Nang     

The central city plans to launch a hibiscus wine development project on 62 hectares in Lien Chieu District.

The city said the location, at the foot of the Hai Van Pass, will be built with total investment of VND300 billion (US$13.3 million) with the first stage operational in the second quarter of this year.

The project was designed with a capacity of 10 million products including one million litres of hibiscus wine, and nine million litres of jam, energy drinks, tea and juice from hibiscus flowers each year.

The project is expected to create 100 jobs for locals and contribute VND100 billion ($4.4 million) to the city’s budget each year. According to the municipal tourism department, the project will develop a farming tour in the future with hibiscus wine bathing and a spa.

The project investor, Doan Thi Thanh Thuy, chairman of the Cham Cham company said the project would make Da Nang the second locality in Viet Nam producing fruit wine after Da Lat City in the Central Highlands province of Lam Dong.

The company also plans to develop an organic farm project for brown rice and a rice milk plant in the future.

Cement export tax burdens domestic firms

The imposition of 5% export tax on cement is weighing down the industry, which has been facing a severe surplus of supply over demand in the local market.

Under the Decree No 122/2016/ND-CP, which took effect from September 1, 2016, if spending on natural resources and energy for production accounts for 51% of a product’s price or higher, the product will be subject to an export tax of 5%. 

The decree was raised with an aim to limit the export of natural resources and minerals. Cement is currently subject to the tax.

The National Assembly Finance and Budget Committee has asked the Ministry of Finance to review this regulation, adding that it was difficult to verify the volume of natural resources producers are using and the costs of energy they are incurring, making the regulation infeasible and burdening export firms.

The Committee said the appropriateness of this regulation in reality must be evaluated to propose amendments and remove difficulties for firms.

According to Nguyen Quang Cung, president of Vietnam Cement Association, there is currently no basis to verify the content of natural resources and energy costs. He said that they still rely on the declaration of producers, which is a loophole that firms could exploit to avoid tax.

In addition, such tax imposition on cement would discourage the application of new technologies in production to reduce prices. Modern technologies would help create economies of scale, thereby reducing total production cost, while spending on natural resource materials is unchanged. 

Therefore, the percentage of natural resource cost could exceed 51% and it is possibly that they would pay much more tax, Cung said.

If tax imposition on cement aims to prevent the export of natural resources, other tax calculation methods such as partially progressive tariff like what is applied for the personal income tax should be applied rather than a fixed tax rate, he added.

He said that the export tax was undermining the competitiveness of the cement industry, which was struggling with a stockpile in the domestic market.

The association said that the current production capacity of domestic cement plants totalled 88 million tonnes per year and expansions and new plants were forecast to boost production capacity to between 120 million and 130 million tonnes by 2020. Meanwhile, domestic consumption demand was anticipated to reach only 82 million by 2020.

Over 20,000 Vietnamese work as Uber motorbike drivers

More than 20,000 Vietnamese men and women have registered to work as motorbike taxi drivers for Uber, a representative of the ride hailing company said recently.

Dang Viet Dung, general manager of Uber Vietnam, did not break down the number but he seemed eager to share that the top motorbike drivers clocked in more than 5,000 rides within a year.

This is the first time the company, since the launch of UberMOTO in April last year, has released such figures. It also has a network of cars for the traditional Uber service.

For future plan, Uber will offer English courses for its drivers to serve foreigners in Vietnam, Dung said.

Before Vietnam, the UberMOTO service had been launched in Thailand, India and Indonesia.

After Uber entered Vietnam in June 2014, collecting tax from for the U.S.-based car hailing service had been a headache for local authorities.

Then in September last year, Uber paid taxes to Vietnam for the first time.

In April this year Uber's car and motorbike services were finally legalized here, even though local passengers rarely paid attention to these legal formalities.

Before Uber, Vietnam’s transport authorities approved a pilot scheme for Grab Vietnam, Uber's main rival, which also entered Vietnam in 2014.

The Malaysia-based Grab is operating both car and motorbike services in the country.

Their market shares have not been disclosed but other service providers, from taxi companies to xe om drivers, have felt threatened.

VnExpress earlier this year interviewed motorcyle taxi drivers, who said they were being beaten by Uber and Grab on their own turf.

Some even predicted that these newcomers could eventually put old-fashioned drivers, now usually referred to as "traditional" drivers, out of business.

This month, a video spread on social media showing a group of xe om drivers in a heated conflict with Grab drivers in front of a hospital in Hanoi.

Revolution 4.0 brings sweeping change

A conference on the 4th industrial revolution was held in Hanoi recently to discuss opportunities and challenges for Vietnamese enterprises brought by the revolution.

Can Van Luc, director of BIDV Training School, said that the revolution will help firms reduce management costs and improve access to information and modern technologies to support the development of new products and open more opportunities.

However, opportunities often go along with challenges. For example, when changing business model or culture, enterprises must be able to manage the changes.

In addition, investing capital effectively and running the company smoothly are also obstacles that companies face. Especially in the era of internet of things, businesses must be careful of cyber-attacks.

Luc evaluated the banking sector as one of the most likely to be affected by the 4th industrial revolution, as humans could be substituted with robots and artificial intelligence.

Although the revolution might make many jobs disappear, it is an inevitable revolution that people could either choose to join or be excluded from, said Truong Gia Binh, chairman of FPT Corporation.

He also emphasised that this revolution was much bigger than previous ones, which caused a tremendous impact on all aspects of life such as health care and business. It could also change the structure of industries in the world and the lives of humans.

A study of some 2,000 small and medium sized enterprises showed that 85% of domestic firms were concerned about the 4th industrial revolution, of which, 55% thought that the revolution would have a huge impact on Vietnam’s economy.

However, 79% of participants said they were doing nothing to prepare for the revolution, 55% are researching, 19% have made plans and only 12% are carrying out plans.

Binh said that the biggest advantage for Vietnamese businesses was that the whole world entered the Revolution 4.0 at the same starting point. If Vietnamese firms quickly invest research and development of products for the revolution, Vietnam’s place in the international market may be completely different.

Luc also reminded domestic firms to absorb the latest information, assess its impact on business activities and develop appropriate strategies.

Nha Trang has ‘critical shortage’ of hotel rooms, report says

An unprecedented Chinese tourism boom has led to a critical shortage of hotel rooms in Nha Trang and the immediately surrounding region in the central province of Khanh Hoa, says an official tourism report.

Occupancy rates have hit a record high 90% two weeks out from the annual sea festival set to transpire June 10-13, said the provincial report.

This is a very successful time for tourism, said Phan Thanh Truc, deputy director of the provincial department of tourism, noting there is seldom an equilibrium between supply and demand for hotel rooms.

Ms Truc added that Chinese tourism for the festival is booming and as a result, a few visitors might experience a little bit of short term pain not being able to stay in the accommodation they prefer, on the exact night they wanted.

Lam Dong-based firms invest in Phu Yen hi-tech AZ

Three firms from the Central Highlands province of Lam Dong signed numerous memoranda of understanding on investing in the hi-tech agricultural zone (AZ) in the south central province of Phu Yen on May 27.

They are the Anh Dao agricultural services cooperative, the Clean Biology Company, and the Saigon Packing JSC.

Vice Chairman of the Phu Yen provincial People’s Committee Tran Huu The pledged that the province will create the most favourable conditions for the investors, including land and tax incentives, and improved infrastructure.

The province will work with relevant bodies to support he firms’ intellectual property protection, he added.

According to The, four projects have been put into operation in the AZ, namely the Taiwan hi-tech AZ, Dong Loi chicken-breeding, biological experimental station invested by the provincial Department of Science and Technology, and the Son Ngoc orchard farm.

Investment procedures are underway for two other projects including a small sugarcane trees production farm funded by the KCP Vietnam Industry Company, and the bio-technology experiment and application zone.

The Phu Yen hi-tech AZ, in its first phase, covers 460 hectares in Hoa Quang Bac commune, Phu Hoa district.

It aims to focus on application of high technology in agriculture sector, particularly in cultivation, husbandry, forestry, fisheries, processing and preserving, and producing bio-products and animal feed for the south central coastal region.

HCM City’s industrial production index rises 7.29 percent

Ho Chi Minh City’s industrial production index (IPI) in the first five months of this year increased by 7.29 percent as compared to the same period last year, reported the municipal People’s Committee.

The growth was recorded in the mechanical manufacturing industry (up 19.35 percent), electronics-information technology (12.1 percent), and food processing (4.87 percent).

HCM City has proactively expanded markets and applied new cutting edge technologies into production to produce high-quality products with high added values.

Decision No.15/2017/QD-UNBD issued by the municipal People’s Committee in early 2017 on supporting businesses to develop industrial manufacturing and supporting industry has contributed to boosting the city’s industrial development and goods production.

The city has built a database for the supporting industry to help businesses seek information on equipment, machinery and new production technologies.

The municipal authorities have also carried out regular inspections over the production and application of high technology in businesses.

Fruit, vegetable exports hit 1.38 billion USD in five months

Fruit and vegetable exports earned an estimated 1.38 billion USD in the first five months of 2017, up 38 percent from the same period last year.

According to the Ministry of Agriculture and Rural Development, the sector exported 344 million USD worth of these products in May.

The top four importers of Vietnamese goods were China, the US, Japan and the Republic of Korea that accounted for 83.8 percent of the total value of fruit and vegetables.

Markets seeing an increase in imports of Vietnamese fruit and vegetables included the United Arab Emirates (2.1 times), Russia (76.3 percent), Japan (51.2 percent), and China (36.8 percent).

In the January-May period, Vietnam imported 470 million USD worth of fruit and vegetables, up 68.6 percent year on year. The vegetable import was estimated at 100 million USD, up 49 percent from 2016, while the imported fruit value was 353 million USD, up 75 percent.

According to the Ministry, in the domestic market, early Thanh Ha lychees were sold in Hanoi at the price up to 50,000 VND (2.2 USD) per kg, an increase of around 10 percent year on year.

Prices of avocado in the Central Highlands province of Dak Lak also surged between 15-20 percent from the same period last year.

Prices of vegetables in Lam Dong are likely to increase because of shortage of supply.

Over 1,000 investors join Viglacera share auction

The Vietnam Glass and Ceramics for Construction Corporation (Viglacera) put up 120 million shares for sale on May 29, attracting 1,026 investors, the highest number recorded at an auction in Vietnam since 2012.  

The shares had an initial price of 12,300 VND each, with the highest bid hitting 17,300 VND. 

Bidders registered to buy more than 314.3 million shares, 2.62 times higher than the total volume offered.

The auction ended with all shares being sold out for 37 organisations and 13 individuals. Foreign investors acquired more than 109 million shares.

The shares were sold at an average price of 16,175 VND each, earning over 1.94 trillion VND (85.36 million USD) in total.

Viglacera, coded VGC, is listed on the Hanoi Stock Exchange (HNX).

The company holds 40 percent of the market share of building glass, 12 percent of sanitary ware, 5 percent of ceramic tiles and 3 percent of bricks, according to a report by the Bao Viet Securities Joint Stock Company.

Viglacera reported its profits of 242 billion VND (10.7 million USD) in the first quarter of this year, surpassing its quarterly target by 69 percent.-VNA

Ho Chi Minh City develops firms in quality

Chairman of the Ho Chi Minh City People’s Committee Nguyen Thanh Phong has directed sustainably developing manufacturing firms in both quantity and quality in the city’s goal of achieving 500,000 businesses by 2020. 

During a local meeting on May 29, Phong said the city has so far recorded 308,977 firms. Among newly-registered ones, 42.6 percent were in real estate, 20.7 percent in trade-services, and 15 percent in construction. 

Since the beginning of this year, 15,492 enterprises have been licensed with a total registered investment of 193,784 billion VND (8.4 billion USD), up 10.4 percent in volume and 54.2 percent in value. Up to 22,086 others applied for new business registration, raising the total newly-registered and additional capital to 453,569 billion VND (19.72 billion USD), or a 2.4-fold increase. 

Su Ngoc Anh, Director of the municipal Department of Planning and Investment, said the municipal authorities are working with districts and communes to encourage business households to switch to businesses. Since early this year, as many as 413 households have changed their status to businesses. 

Permanent Vice Chairman of the municipal People’s Committee Le Thanh Liem said the city has worked with five districts and communes on this regard and will continue discussing with 24 others in June. 

The city is focusing on developing key industries instead of running after business number. In the first five months of this year, the industrial development index rose 7.29 percent year-on-year, including mechanical engineering (19.35 percent), electronics-information technology (12.1 percent).

According to Anh, in early this year, the city issued a decision on support for enterprises working in the manufacturing and support industries. Furthermore, a database on support industry, particularly mechanical engineering firms, has been built, making it easier for information search. 

Since 2017, the city has licensed 283 foreign-invested projects worth 341 million USD, mostly from the Republic of Korea (27.8 percent), followed by Malaysia (13.2 percent) and Singapore (11.7 percent). Notably, manufacturing-processing accounts for 35.9 percent while wholesale and retail makes up 27.1 percent, information and communications (16.2 percent), real estate (11.8 percent). 

Phong said major Korean firms have chosen the city as a long-term business destination. Meanwhile, those from Japan, Singapore and Malaysia may raise their capital. 

In January-May, the city earned 14 billion USD from exports, up 17.1 percent annually.

Industrial production index rises 5.7 percent in five months

The index of industrial production index (IIP) in the first five months of this year posted a year-on-year increase of 5.7 percent, according to the General Statistics Office (GSO). 

In May alone, the index grew 7.2 percent against the same period last year.  

In January-May, the power production and distribution, processing and manufacturing industry, and water supply and waste and wastewater treatment, respectively soared 10.4 percent, 9.7 percent and 7 percent. Meanwhile, the mining industry dropped by 5.5 percent. Mining dropped 9.1 percent.

A number of key industrial products that recorded high growth compared to the same period last year included television sets (42.8 percent), raw steel and iron (29.6 percent), and urea (18.5 percent). 

Some products seeing moderate rises were automobile (2.4 percent), fossil coal (1.1 percent), cigarette (0.9 percent), and refined sugar (0.7 percent). Meanwhile, mobile phones, LPG products, footwear, natural gas and crude oil saw declines between 0.6 percent and 13.6 percent.

Hai Phong took the lead among localities enjoying high IIP in five months with 20.5 percent. It was followed by Thai Nguyen, 17 percent, and Da Nang, 10.8 percent.

As of May 1, inventory index of the processing and manufacturing sector expanded by 11 percent compared to the same period last year, the office revealed. 

The low inventory index was seen in paper and leather sectors, vehicle production, and cigarette production.

However, the index escalated 82.4 percent in metal production, motored vehicles, 69.8 percent; electronic products, computers and optical products, 50.1 percent, while electricity device and products from nonmetallic minerals, and beverage increase between 26.2 percent and 40.6 percent, reported the office.

EU-funded project improves Vietnam’s support industry

The project “Vietnam’s Supporting Industries to Europe” has improved manufacturing capacity of the sector after three years of implementation. 

During a seminar held in Hanoi on May 29 to review the project, Director of the Supporting Industry Enterprises Development Centre (SIDEC) Truong Thi Chi Binh said among more than 200 participating enterprises, 98 percent of them have increased sales while 38 percent have recorded higher export earnings. 

The project has connected spare parts manufacturers with buyers worldwide, particularly those in the European market, and assisted in building relevant policies. 

Thanks to the project’s support, the Vietnam Association for Support Industries (VASI) was born in March 2017 which links together businesses, organisations and individuals working in the field. Up to 30 training courses in manufacturing-trade have benefited 1,500 people while 67 stalls were organised for businesses in eight international fairs in Europe.

Do Thi Thuy Huong from the Vietnam Electronics Industries Association said the project has made it easier for Vietnamese firms to supply products to Samsung. 

Participants suggested ministries and agencies concerned offer support in training, connectivity and joining international fairs. 

According to Binh, Vietnam is strong in products requiring both machinery and hand assembling, such as electronic circuit which is sold well at international fairs. 

The government was urged to offer incentives to businesses regarding loans, technology and training in order to facilitate Vietnam-European Union (EU) trade. 

The VASI also needs to improve its consultancy capacity and training for manufacturing firms. 

The “Vietnam’s Supporting Industries to Europe” project was funded by the EU with a total cost of more than 412,000 EUR. 

Carried out from June 2014 – June 2017, it aims to improve the capacity of Vietnam’s small and medium enterprises in support industry, particularly in engineering, electricity-electronics, plastics and rubber.

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