Gelex to increase charter capital in Gelex Eletric     

The Vietnam Electrical Equipment Joint Stock Corporation (Gelex) may increase the charter capital of its subsidiary business Gelex Eletrical Equipment Co Ltd (Gelex Electric) six-fold, to VND2.2 trillion (US $98.6 million).

The charter capital increase will be carried out through merging Gelex Electric with three other subsidiaries of Gelex and cash funding. Gelex has a 100 per cent stake in Gelex Electric.

Gelex will hand over its ownership in the three sub-businesses, which are Vietnam Electric Cable Corporation (Cadivi), Electrical Equipment JSC (Thibidi) and Hanoi Electro-Mechanical Manufacturing JSC (HEM), to Gelex Electric after raising its stakes in these three firms to 100 per cent.

Gelex is holding a respective 79.76 per cent, 79.79 per cent and 65.88 per cent stake in the three companies. Therefore, the three companies may be delisted from the stock markets once the deals complete.

In addition to handing over the three companies to Gelex Electric, Gelex will also add VND19 million in cash to the charter capital of Gelex Electric.

Gelex has recently announced it will issue maximum 72 million shares to convert 1,440 warrants for bondholders at VND16,600 per share.

VN-Japan talk farm technology co-operation     

Viet Nam and Japan can accelerate co-operation in applying Japan’s new technology and advanced value chain management methods to Viet Nam’s agricultural production, according to experts at a conference in the capital city on Tuesday.

Head of the Viet Nam Academy of Agricultural Sciences Nguyen Hong Son said Viet Nam was transforming its agricultural production to focus on increasing quality rather than quantity.

The application of science and advanced technologies is a key factor in this transformation process, he said, emphasising the importance of technology in the entire farming production chain from cultivation and harvesting to processing and trading.

Viet Nam has gradually co-operated with foreign partners to evaluate and choose suitable technologies which can help the country produce quality farm produce. Technologies from Japan and South Korea, where farming methods are relatively familiar to Viet Nam, are among the best candidates.

Son described the adoption of advanced technologies from Japan in several areas such as seeds, bio-preparations, soil improvers and biosecurity besides those in quality control as an effective way for Viet Nam to promote exports of agricultural products to Japan as well as other countries with which Japan has trade relationships.

If Viet Nam wants to export goods to Japan, its technology needs to be compatible with that of Japan in order to churn out products that meet the quality demand of this strict market, Son explained.

Koichiro Abe, CEO of Raycean Co from Japan, affirmed that cutting-edge techniques and marketing strategies can increase the value of agricultural goods.

During the event yesterday, Japanese firms discussed technologies Viet Nam could adopt in the areas of cultivation and livestock.

VN’s five-month agro-forestry-fishery exports

The country’s total exports of agro-forestry-fishery products witnessed positive year-on-year growth of 10 per cent to US$15.6 billion in the first five months of this year, the Ministry of Agriculture and Rural Development (MARD) announced yesterday.

During the period, forestry products led the agro, forests and seafood export group with turnover of $3.4 billion, up 9 per cent year-on-year and accounting for nearly 22 per cent of the total export value.

Among major importers of Vietnamese wood and wood-based products were China, Japan, South Korea and the US.

The export value of key agricultural products reached $8.25 billion, up 10 per cent from the same time last year.

In May alone, the country raked in $347 million from shipping abroad some 452,000 tonnes of rice, bringing the total value of rice exports in the January-May period to $1.45 billion, up 40 per cent and 14 per cent.

The average rice price in the period experienced an increase of 13 per cent to over $500 per tonne.

China remained the largest buyer of Vietnamese rice, holding nearly 34 per cent of the market share.

According to MARD, seafood products contributed $3.12 billion to the group’s five month export turnover, a hike of 10 per cent year-on-year.

The ministry also said that the country spent $12.29 billion importing agro-forestry-fishery products during January-May, marking a yearly rise of 11 per cent.

Imports of garment and footwear materials from Canada surge strongly

Imports of materials for garment and footwear industries from Canada saw a tremendous growth of 179.8% to US$11.8 million in the first four months of this year, according to the statistics from the General Department of Vietnam Customs.

Imports of the products in April reached US$497.05 million, bringing the total import value in four months to US$1.74 billion, down 0.02% against the corresponding period last year.

Currently, the five major suppliers with a value of more than US$100 million each are China, the Republic of Korea, Taiwan, the US and Southeast Asian countries. China took the lead at more than US $645.95 million (down 4.3%), accounting for 37.2% of Vietnam’s total imports, trailed by the RoK (down 5.1% to nearly US$226.16 million), Taiwan (down 11.2% to US$148.11 million), the US (up 14% to US $118.83 million) and Southeast Asian countries (up 14.2% to US$113.55 million).

It’s noteworthy that imports of the materials from many markets particularly from Canada increased against the same period last year.

Meanwhile, imports from other markets suffered a sharp decline, including Argentina (down 51% to US$7.68 million), New Zealand (down 50.3% to US$4.23 million), France (down 41.6% to US$1.3 million), Austria (down 32.8% to US$0.44 million) and Germany (down 31.4% to US$8.44 million).

TH Group expects IPO in Singapore within next two years

TH Group may one-up Vietjet and VNG by becoming the first Vietnamese firm to have its stock listed on an overseas stock exchange. However, the IPO is planned for 2020, which leaves a lot of space for action for the other firms.

TH Group is planning to be listed on the stock exchange in the next two years.

Group founder and chairwoman Thai Huong said that the IPO will be conducted in Singapore. Since late last year, TH Group has consulted several financial institutions to prepare its plans for the initial public offering (IPO) of its dairy business.

TH Group set the revenue target of US$1 billion from the dairy business before listing.

The proceeds of the IPO will be used to develop their domestic market and expand business in Russia.

On the note of listing on overseas stock exchanges, one year ago, Vietjet announced intentions to become the first Vietnamese company to list its shares on a foreign stock exchange.

Currently, the carrier controls more than 40 per cent of the domestic air transport market and seeks more funds after spending billions of dollars to purchase aircraft.

A number of overseas stock exchanges, including London, Hong Kong, Singapore, and New York expressed interest in the stock of Vietjet.

This company is still weighing its options and has yet to make a final decision.

Not only carrier giant Vietjet, technology company VNG Corporation is also conducting the IPO process and expects to list its shares on Nasdaq.

On May 29, 2017, VNG’s general director and Nasdaq’s vice chairman signed a memorandum of understanding to hold the IPO of VNG’s shares on this stock exchange, enabling VNG to approach US funds.

According to the plan, VNG would take between 18-24 months to complete the procedures for listing and conducting its IPO.

In reality, Vietnamese firms are facing difficulties in listing overseas due to the strict listing criteria set by foreign stock exchanges.

Major corporations Vinamilk, Hoang Anh Gia Lai, and Saigon Securities Corporation have all put forward plans along these lines over the past ten years, but none of them have managed to succeed due to restrictions in foreign ownership (which have since been lifted), differences in accounting standards, and the global financial crisis.

After nine years of operations, TH Group established three subsidiaries, namely TH Milk Food, TH Milk, and TH Food, operating the biggest cattle farm in Asia and the largest dairy production facility in Southeast Asia with the total investment capital of $1.2 billion in the central province of Nghe An.

The group also intends to develop farms in other provinces, such as Ha Giang, Phu Yen, and Soc Trang, to reach the total scale of 137,000 milk cows by 2020.

Up to late 2016, these three companies made hundreds of millions of dollars in accumulated losses, despite a revenue growth of 20 per cent between 2014 and 2017.

TH Group’s Thai Huong said that the group has enough capital to develop its dairy business in the country and does not have to seek financial resources at the moment.

In addition to shareholders’ capital, the group received loans from BIDV, Vietnam Development Bank (VDB), Maritime Bank, and Bac A Bank, where Thai Huong is CEO.

In Russia, TH Group is investing into a dairy cow and high-tech milk processing complex worth $2.7 billion.

The project would be completed within ten years and would be divided into three phases in order to house 350,000 milk cows and a number of dairy factories with the total capacity of 1.8 million tonnes per year and the total area of 140,000 ha.

Several days ago, TH Group has signed a co-operation agreement with Russian Direct Investment Fund (RDIF), which will invest $633 million into the former’s dairy projects in Russia.

Other potential markets for TH Group include China, Singapore, Malaysia, and Indonesia.

As TH Group is pouring immense amounts of capital into improving production, business, and developing overseas markets, the listing on an overseas stock exchange is a good decision to approach overseas funds.

50% of Viet Tien garments on local market fake

Brands of subsidiary companies of the Vietnam National Textile and Garment group (Vinatex) are commonly counterfeited for the domestic market, especially products of Garment 10, Viet Tien, and Duc Giang companies.

Last year, the garment and textile sector grossed an export turnover of more than US$31 billion. In the first four months of the year, total export turnover rose by 14% to US$10.3 billion against the same period last year, fulfilling 39% of the yearly plan.

Despite these positive signs, the sector faces a problem in the increasing number of counterfeit goods.

According to Le Tien Truong, general director of Vinatex, brands of subsidiary companies of Vinatex have been faked on the market, especially Viet Tien garment products, accounting for 50% of the products.

To secure a foothold in the local market, the sector needs to develop its own brands and seek ways to win the support and trust of consumers.

Mr Truong underlined the importance of building trademarks and developing intellectual property in accordance with laws in the country and in foreign markets.

Mr Truong noted that it takes time to develop trusted brands for the sector, with the starting point being the domestic market, before then gearing up for major markets around the world.

Vietnam's fruits struggle for ground in foreign markets

Despite relatively high export growth, it is not easy for Vietnamese fruits to look for expansion to international markets and acquire major market shares as it can take 5-10 years to negotiate necessary international business contracts.

According to the Plantation Protection Department under the Ministry of Agriculture and Rural Development, many choosy markets including Japan, the US and EU have opened the door to Vietnamese water melon, mango, lychee, rambutan and dragon fruit, bringing the country quite huge value. However, it is not easy to get stable profits in these markets.

At a recent discussion between businesses and relevant ministries and departments on how to remove obstacles in production and trade, many participants held that there should have been a long-term strategy for Vietnamese fruits to secure their foothold in choosy markets.

So far, inadequate research on market demand and competition has resulted in some market entry failures. They cite the examples of exporting lychees to the US or dragon fruits to Chile.

In terms of profits, some experts warned businesses to keep calm after initial success. A report of the Vietnam Fruit and Vegetable Association shows that the average profit of fruit and vegetable businesses was just 7% last year as they failed to consider changes of material prices over seasons.

However, exporters find it difficult to control pesticide residues in the fruits before export.

No matter what, the fruit export strategy has further been boosted. Fruit and vegetable exports jumped by 42.5% last year and exceeded the mark of US$3 billion for the first time.

China topped Vietnamese fruit and vegetable importers with US$2.65 billion last year, making up 75.7% of market share. Exports to Japan, the US and the Republic of Korea also obtained high value with respective market shares of 3.63%, 2.92% and 2.45%.

The Food and Agriculture Organization of the United Nations (FAO) forecasts that the global fruit and vegetable market will grow by 8% in the 2017-2020 period and reach US$320 billion by 2020. Therefore, 

the door for Vietnamese fruits to foreign markets still opens, but to retain a foothold in international markets is a thorny problem.

Experts suggest it is high time to develop a strict monitoring system for agricultural production towards reducing and excluding chemicals in crop protection and fruit preservation.

StanChart experts say M&A opportunities abound in Vietnam

Vietnam is regarded by foreign investors as a top ASEAN destination to explore investment opportunities via mergers and acquisitions (M&A), heard a recent seminar on ASEAN M&A in Ho Chi Minh City.

According to Ralf Pilarczyk, head of M&A for ASEAN at Standard Chartered, investors are seeking opportunities via the bank in various fields as they are appealed by the market’s large scale and growth potential.

Equitization and capital divestments at State-owned enterprises (SOEs) are giving foreign investors a chance to join the market, Pilarczyk told the seminar organized by Standard Chartered and the Malaysia Business Chamber Vietnam.

Tina Tejwaney, a Standard Chartered expert on M&A in ASEAN, said M&A deals in Vietnam tend to rise thanks to fast and stable economic growth and the big market with a large population.

This is proven by major transactions conducted by Thai investors in the past time like Central Group’s acquisition of Big C Vietnam and Thai Beverage’s purchase of a 53.59% stake in Sabeco via Vietnam Beverage.

These two deals are among the biggest M&A deals to be struck in ASEAN recently, she added.

Besides Vietnam’s loosening of foreign ownership limits at public companies, that SOEs have started to divest capital has attracted investors more, according to Tejwaney.

In addition to consumer goods and retail, logistics and transport infrastructure are expected to lure foreign investors in the coming time.

Talking about M&A trends in ASEAN, Pilarczyk and Tejwaney mentioned how Standard Chartered work with clients to effectively handle complex, cross-border mergers, divestments and investments.

Edward Lee, chief economist for ASEAN and South Asia at Standard Chartered, shared notable points in the bank’s recent report. He said that ASEAN has a bright economic outlook and government investments in infrastructure projects will boost short- and medium-term growth.

Theng Bee Han, president of the Malaysia Business Chamber Vietnam, said that ASEAN is the world’s sixth largest economic bloc with a total population of 650 million, a major global manufacturing and trading center and a fast-growing consumption market. M&A activities in Southeast Asia as well as Asia have been on the rise.

Theng Bee Han said that the chamber appreciates Standard Charter’s support for ASEAN enterprises as their operations grow and become more complex, as well as their capital needs.

Vinfast to launch first Vietnamese electric car

The dream of a low-cost "Made-in-Vietnam" electric car will be realised next year when Vietnamese car manufacturer Vinfast launches its electric cars at a highly affordable price.

Vinfast will realise the dream by co-operating with EDAG, the world's largest independent German engineering services provider.

Notably, on May 24, the two parties signed a contract for the complete development of the first electric vehicle for the Vietnamese automobile market, which is dominated by foreign players.

Accordingly, Vingroup, the investor of Vinfast, plans to conquer the car markets in Vietnam and beyond with two conventionally-powered vehicle models and a fully electric car. Top quality, affordable cars—this is Vinfast's formula for success.

"We are proud that Vinfast has chosen us as the overall engineering partner to work on their trendsetting electric vehicle project," stated Cosimo De Carlo, CEO of EDAG Group.

"Our all-round skills in vehicle and production plant development coupled with our expertise in the fields of eMobility, car IT, and electrics/electronics inspired the confidence of our customer Vinfast. EDAG’s 

standing as an independent engineering services provider with international experience predestines the firm to go new ways at high technical levels and turn innovative concepts into marketable products," added Carlo.

Vinfast committed not to include expenses on copyright and design, on offsetting the depreciation of the plants or interest from loans to the selling price.

Earlier in late-March, Vinfast announced the most popular of the electric designs offered to vote. The winner was the IDC EV A design.

According to the plan, the small electric hatchback model will be launched in late 2019, one year earlier than initially planned.

These electric models will have a competitive selling price compared to other automobile brands at the same segment.

In order to achieve this competitive selling price, Vinfast committed not to include expenses on copyright and design, on offsetting the depreciation of the plants or interest from loans to the selling price of each car.

Along with co-operating with EDAG to manufacture electric automobiles, Vinfast has made itself known by concepts made by famous designers Pininfarina, Ital Design, Torino Design, and One One Lab. 

These designs will become real automobiles within 16 months.

Moreover, Vinfast has collaborated with the leading technology brands worldwide, such as Siemens, Bosch, Magna Steyr, and BMW, and recruited a series of senior employees from international automobile manufacturers.

EDAG is an independent engineering service provider working for the global automotive industry. The company has a global network of some 60 branches at the world's major automobile centres to serve leading national and international vehicle manufacturers and technologically discerning automotive suppliers.

In addition, EDAG also offers engineering services in the vehicle engineering, electrics/electronics, and production solutions segments.

Bamboo Capital, Pavillion Corporation eye Vietnam’s largest water-borne project

Envisioned as artificial islands in Danang Bay, Lotus Island could become the largest water-borne project in Vietnam to date, simultaneously, it will mark a breakthrough in foreign investment capital inflow in Vietnam.

Bamboo Capital, Pavillion Corporation, and Danang Food JSC have expressed interest in developing the project named Lotus Island in the waters of Danang Bay with a total investment capital sum of $8 billion.

The original goal of the Lotus Island project is to build a special economic zone by constructing artificial islands that form functional areas, such as residential areas, casinos, financial centres, duty-free zones, 

golf courses, and other infrastructure. The project would be located about 1 kilometre from the coast and connected to the mainland by modern bridges.

Pavillion Group, headquartered in Malaysia, is currently implementing many large projects across the globe. Danang Food JSC, formerly known as Quang Nam Danang Food Company, was established in 1992 and is not a realty company. Meanwhile, Bamboo Capital Fund is part of Bamboo Capital—a group of companies operating in various fields in Vietnam.

After the recent meeting with the three investors, leaders of the Danang People’s Committee assigned related departments and the authorities of Hai Chau, Thanh Khe, and Lien Chieu districts to work with the Danang Investment Promotion Agency to provide the necessary information for investors to complete their investment proposals.

VIR contacted Bamboo Capital for detailed information on the project, however, a staff stated that they, including the two remaining investors, have just expressed their interest to develop the project to the city leaders and so do not wish to publish further information just yet.

Lotus Island in Danang Bay will have massive investment capital, thus it will increase foreign capital inflows to the city by a significant amount, however, it also carries a risk of environmental pollution in case of lapses during monitoring and implementation.

This will not be Vietnam's first project built on the sea, although several projects which were not meant to be built in water per se but managed to encroach on significant water area have been giving such project a bad name. Take the Nha Trang Sao project, for instane.

In mid-May, Nha Trang Sao JSC filed another complaint in order to receive permission to continue a tourism project which was banned for illegally encroaching on the renowned Nha Trang Bay in the central province of Khanh Hoa.

The project on Pham Van Dong street was licensed in 2012 with the total investment of $33 million. The construction started in 2014 and was scheduled for completion in late 2016, according to plo.vn.

In early 2016, the project investor was fined for VND130 million ($5,909) for failing to monitor the environmental impacts of construction activities, and VND70 million ($3,181) for illegally filling up 23,000 square metres of the bay.

The project's investment certificate was also revoked. The investor was asked to restore the bay and remove an embankment. However, little has been done and the project has become stagnant. Nha Trang Sao JSC has since filed two complaints to the provincial Department of Planning and Investment.

On May 17, Hong Kim Yen, the legal representative of Nha Trang Sao JSC, claimed that the violations were not the investor's fault as they were decided by the company's old shareholders. After welcoming new shareholders in last March, they adjusted the architectural planning following the Khanh Hoa People's Committee's requests. They also submitted the planning to local authorities but received no feedback.

Yen requested the province to authorise the project to resume, saying that if the project is put into use, it will help boost the local tourism sector and protect the coral reef and the marine environment.

Meanwhile, the Khanh Hoa Department of Planning and Investment said that they had a meeting with Nha Trang Sao JSC on March 30 and the investor failed to provide sound evidence to prove their claims. 

According to the department, not only did Nha Trang Sao JSC violate the regulations in the first place, it did not fix the wrongdoings even after being fined.

The department refused to issue another investment certificate and said that Nha Trang Sao had the right to file a complaint to the Khanh Hoa People's Committee.

SCG makes final acquisition in Long Son Petrochemical Complex

Leading ASEAN industrial conglomerate SCG has reached an agreement to buy PetroVietnam's 29 per cent in the long-delayed Long Son Petrochemical Complex, leaving it king of the hill.

This step once more confirms SCG's determination to implement the petrochemical complex that has been delayed for more than 10 years now.

According to Roongrote Rangsiyopash, president and CEO of SCG, the group has been investing in Vietnam for more than 20 years.

“Long Son Petrochemical Complex (LSPC) is our latest investment in Vietnam and is also positioned as Vietnam’s first petrochemical complex. LSPC will produce an important supply for the manufacturing industry which will in turn support Vietnam’s industrial and economic development. This will also be in line with the national economic development plan,” Rangsiyopash commented.

The Vietnamese economy, according to Rangsiyopash, is on an impressive growth path and LSPC is expected to encourage long-term investment in related industries throughout the value chain, as well as improving a competitive standard of products that will lessen the need to import petrochemical products.

Moreover, SCG also believes that this project will support the growth of downstream businesses in Vietnam and play a vital role in supporting long-term economic growth, as well as improving the quality of life for people in Vietnam and across the region. LSPC was initiated by PetroVietnam in 2008 with the participation of SCG, Qatar Petroleum International, and state-run chemical group Vinachem.

However, it was not until February 2018 that the project officially started construction by the remaining two investors, PetroVietnam and SCG. The Thai investor also increased the total investment capital of the complex to $5.4 billion from the previous $3.8 billion.

According to SCG, the engineering, procurement, and construction contract of the complex will be implemented from the third quarter of this year and the whole project is expected to be put into operation in 2023.

LSPC is located in Long Son commune of Ba Ria-Vung Tau province, 100 kilometres from Ho Chi Minh City. This integrated petrochemical complex will have a total olefin production capacity of 1.6 million tonnes per year.

The complex is designed to produce various petrochemical products, including essential plastic materials such as polyethylene, polypropylene, and other products in excess of two million tonnes per year, enabling it to substitute imported polyolefin products. Non-petrochemical supporting infrastructure, such as a deep sea port and other facilities, are also included.

The project will create more than 20,000 jobs during construction, including more than 1,000 skilled labourers, and is expected to contribute around $60 million per year to the annual budget.

SCG began expanding its business in Vietnam in 1992. So far, the group has 23 subsidiaries and affiliates with over 8,300 labourers working in Vietnam.

Vietnam attracts additional US$7.1 billion in FDI

Vietnam reeled in around US$7.1 billion in newly registered and additional capital from foreign investors in the five months of this year.

Vietnam had granted investment licences to 1,076 new projects as of May 20, with a total registered capital of US$4.6 billion, up 14.6% in project numbers and down 16.8% in capital against those of the same period last year. 393 projects saw capital adjustments with additional investments of US$2.5 billion.

In the first five months of the year, there were 2,341 deals made by foreign investors to contribute capital to businesses and to buy shares of Vietnamese businesses with total capital of US$2.75 billion, an annual rise of 53.4%.

In the period between January and May, the manufacturing and processing industry was the most attractive destination with a total capital of US$2.2 billion, equal to over 49% of the country’s total registered capital. It was followed by the production and distribution of electricity, gas, hot water and steam, and air conditioners with US$898 million, accounting for 19.3%; real estates (US$623.3 million; 13.4%) and the remaining industries (US$846.1 million; 18.2%).

Among the 43 cities and provinces that received FDI in the first five months of 2018, Ho Chi Minh City was on top with US$541 million, followed by Hanoi (US$525.6 million), Binh Duong (US$403.8 million), and Dong Nai (US$373.6 million).

Among the 50 nations and territories investing in Vietnam in the first five months, the Republic of Korea topped the list with a registered capital of more than US$1 billion, accounting for 22% of the country’s total registered capital. Japan, Thailand and Singapore followed with US$904 million, US$536 million and US$503 million, making up 19%, 11,5% and 10.8% of the total capital, respectively.

HCM City to reduce salt farmland, expand aquaculture production

The HCM City Department of Agriculture and Rural Development has proposed reducing the land for salt farming in Cần Giờ District by one-third by 2030 and increasing the land for aquaculture farming.

Under the plan, the area of salt production would be reduced from 2,172 hectares to 850 hectares by 2025, and to 644 hectares by 2030.

These areas eligible for reduction are outside of the planned zones for salt farming and yield low economic efficiency. They would be converted to aquaculture farms and protection forests.

In Cần Giờ, salt output so far this year has been over 80,000 tonnes, double the amount of the same period last year.

The price of salt is VNĐ1,000-VNĐ1,100 (US$ 4-5 cents) per kilo, according to the city’s Department of Agriculture and Rural Development. 

Solar, wind energy projects kick off in Ninh Thuận Province

The People’s Committee of Ninh Thuận Province, a typically hot and dry area, has urged investors to focus on solar and wind energy projects.   

The province is less affected by storms than other areas in the country, and has become known as the renewable energy centre in Việt Nam.

Ninh Thuận Province has approved nine wind power projects and total investment of VNĐ26.5 trillion. It has also approved 22 solar energy projects, with total capacity of 1,259 MW.

However, the development of those projects have been implemented at a snail’s pace.

Among the nine approved wind power projects, only four are under construction including Công Trung Nam, Phước Dinh and Đầm Nại, according to Ninh Thuận Industry and Trade Department.

On January 23, construction began on the first solar energy plant by BIM Group (Vietnam) and AC Energy (Philippines), with total investment of VNĐ800 billion (US$35 million) and 90,000 solar panels in Phước Minh Commune in Thuận Nam District.

The second, Bầu Ngữ project, has begun construction since March 31, with a combined capacity of 50MW and total investment of VNĐ1 trillion. 

Two other solar projects are due to be built in June this year.

The 18 remaining solar energy projects are still on paper.

The Ninh Phước District have the most with 9 solar projects with total capacity of 308MW and total investment of VNĐ 9.2 trillion.   

The chairman of Ninh Thuận People’s Committee, Lưu Xuân Vĩnh, said the high cost and land clearance for construction of wind and solar power plants were the main reasons that have deterred many investors.

“However, if investors don’t have enough capacity and experience, we will withdraw their investment licences,” he said.

According to the Ministry of Industry and Trade, investment in wind and solar power costs more than traditional electricity.  Additionally, mobilising capital from banks is also difficult for investors.

New firms up by 3.5% in 5 months     

Viet Nam saw an increase in the number of new enterprises and their registered capital in the first five months of 2018 due to improving business conditions.

This was reported by the Ministry of Planning and Investment (MPI).

According to MPI’s Business Registration Management Agency, the number of newly established enterprises in the first five months rose by 3.5 per cent year-on-year to 52,322 units, with a total registered capital of VND516.9 trillion (US$22.7 billion).

The capital increased by 6.4 per cent compared to the same period last year due to improving business conditions and registration procedure, the agency said.

The average capital for an enterprise reached VND9.9 billion, a year-on-year surge of 2.8 per cent.

New enterprises have focused on sectors such as wholesale and retail, repair of cars and motorcycles, processing and manufacturing as well as construction.

Twelve sectors saw an increase in newly established enterprises in the first five months. The real estate trading sector had the highest growth in the number of new enterprises at 41.1 per cent. The sector also saw the highest development in registered capital of new firms, accounting for some 29 per cent of the total registered capital.

Sectors such as electricity production and distribution, real estate trading, finance-banking and mining led in terms of average registered capital per enterprise.

Meanwhile, in the first five months of this year, 13,267 enterprises resumed operations, a year-on-year reduction of 1.4 per cent, while 15,974 enterprises temporarily stopped their operations, a year-on-year increase of 24 per cent. 

Ha Noi attracts US$860mn in FDI     

The capital city attracted US$860 million in foreign direct investment (FDI) in the first five months of 2018, said municipal Department of Planning and Investment director Nguyen Manh Quyen.

Of this, $529.2 million were invested in 225 new projects, over $131 million were added to 48 existing projects and $199.5 million were invested in the stakes of domestic companies.

Quyen said the city carried out 27 non-State capital projects, with a combined investment of VND27 trillion ($1.2 billion). In addition to this, 13 projects were permitted to increase investment capital by VND1.98 trillion.

In the first five months of 2018, Ha Noi approved another public-private partnership (PPP) project with an investment of almost VND1.41 trillion, bringing the total number of PPP projects to 12, with a total investment of more than VND28.33 trillion.

During the reviewed period, 9,420 businesses were established in the city, with a combined registered capital of VND97.5 trillion, down by 1 per cent in number but up by 36 per cent in the volume of investment.

The figure raised the total number of enterprises in Ha Noi to 241,000.

Last year, the capital city drew up to $3.4 billion in FDI.

Central city to host int’l start-up event     

The central city will host the third International Start-up Conference and Exhibition, or SURF 2018, on Tuesday, with the aim of attracting participants in technology, artificial intelligence (AI) and big data.

The event’s organisers hosted a press conference on Monday, stating that more than 2,000 attendees including 20 investors and 30 speakers have registered to take part in the conference and exhibition at the city’s administrative centre.

About 70 pavilions will be set up for the one-day conference and start-up exhibition with the theme ‘linkthewaves’, in the coastal city.

The start-up pitch competition this year, which is the largest in central Viet Nam, will offer a total cash-prize of US$6,000 for the winner.

Participants will take part in opportunities to share experience with start-up programmes from Israel, Canada, Ireland, the UK, Finland, Singapore and Viet Nam.

Deputy Chief of Mission of the Israel Embassy in Viet Nam, Doron Lebovich said SURF 2018 will be an event to mark the 25th anniversary of diplomatic ties between Viet Nam and Israel.

He said Israel and Da Nang as well as the Da Nang Entrepreneurship Support Centre has been in positive partnerships with start-up programmes, and the city’s leadership has strongly committed to building a start-up programme and ecosystem.

He said experts from Israel will take part in sharing experiences and technology transfer at the exhibition and conference next month.

Da Nang has launched its business start-up programme eco-system from now until 2020, with a vision to 2030.

The city’s business start-up ecosystem debuted in 2014 as a base for a young generation beginning their business careers. Three hundred start-up projects, of which 10 received funding from investors, were born from the ecosystem’s co-working space.

In 2017, the Song Han Incubator Centre, which was seen as the first private sector incubator, was debuted as a consultancy for young people starting businesses.

It aims to develop a start-up ecosystem and popularise the spirit of business among other locals in Viet Nam.

Da Nang has 18,000 businesses, 95 per cent of which are small and medium-sized enterprises.