HCMC asked to produce fuels, diversify export products

The Economic and Budgetary Committee of the HCMC People’s Council has asked the city government to weigh plans to diversify export products and produce fuels to counter the negative impact of the global oil price plunge on the city’s export revenues.

Pham Van Dong, head of the committee, made the proposal in an evaluation report on the city’s January-June socio-economic performance at the opening of the 18th session of the council on July 28.

As reported by the city government, the city maintained stable economic growth in the first half. Gross domestic product (GDP) grew 8.55%, the highest year-on-year growth in three years, and an improvement in consumption contributed to the high economic growth rate.

However, as HCMC’s export turnover went down, Dong said, the city should work out plans to process fuels and add value to export products to mitigate the negative impact of the volatile oil price on global markets.

The city government estimated January-July exports at US$17.6 billion, down 4.6% against a year earlier. The decline is attributed to the crude oil price drop of 47.4%.

According to Dong, the city government should give more support to the sectors strong in export, supporting and key industries as the city’s spearhead industries of engineering, electronics, chemical-rubber-plastic and mining posted growth of 5.5% in the first six months but the growth was not sustainable.

Despite stable growth in the period, major woes like urban flooding, traffic congestion and slow planning remained to be solved.

“Many projects in the fields of transport, education and healthcare have been moving slowly,” Dong said. “Slow planning has affected the legitimate interests of citizens.”

Other urban problems are the foot-dragging relocation of polluting producers and a shortfall of effective solutions and sanctions against polluters and factories with high fire and explosion risks. In addition, urban flooding has not been solved.

Dong requested the city government to report in detail on the performance of State-owned enterprises and land management. The city should find ways to achieve the target of supplying clean water to all households, and improving the investment environment.

The city needs to take bold steps to boost supporting industries and inform local enterprises of the Trans-Pacific Partnership (TPP) trade pact and other free trade agreements between Vietnam and its partners.

Also on July 28, the Economic and Budgetary Committee said it had agreed on the city government’s proposal to hike vehicle registration fees on non-commercial cars of less than 10 seats and motorcycles.

Earlier, the city government proposed the registration fee on non-commercial cars of less than 10 seats from VND2 million to VND11 million a unit. The planned fees on trailers and semi-trailers, motorcycles costing less than VND15 million, bikes worth VND15-40 million, and ones valued at over VND40 million are VND150,000 per unit, VND750,000, VND1.5 million and VND3 million respectively.

The city will start to collect the new registration fees from this September if they are approved by the HCMC People’s Council at its ongoing session.

High FDI to real estate in first seven months

In the first seven months of the year foreign direct investment (FDI) into real estate stood at $1.69 billion, or 19.3 per cent of all FDI, according to the Foreign Investment Agency (FIA).

Real estate ranked second in terms of sectors attracting FDI, behind industry and manufacturing.

In the first seven months there were 15 new projects in the real estate sector and seven existing projects with additional capital.

In Ho Chi Minh City most FDI went to the real estate sector in the first seven months, with four projects and $1.31 billion, according to a recent report from Ho Chi Minh City General Statistics Office.

According to insiders, FDI in the real estate sector in the remaining months of the year may increase further as the market is seeing a positive impact from the new Law on Housing and the Law on Real Estate Business, which came into effect on July 1. The new laws’ impact is expected to be significant and will mark an important step towards opening up Vietnam’s real estate market to overseas investment.

There have been a number of foreign investors pouring large amounts of capital into the domestic property market recently. Among others, Japan’s Creed Group, who specializes in principal investment and property development, signed a strategic cooperation agreement on July 26 with An Gia Investment and committed to invest $200 million in the Vietnamese partner. Previously, the US investment fund Global Emerging Markets (GEM) announced a $20 million investment in the Hoang Quan Group, to develop social housing projects in Vietnam.

Outstanding credit in HCMC up 7%

A report from the Ho Chi Minh City People’s Committee showed that total outstanding credit in the city for the first seven months stood at VND1,140 trillion ($52.24 billion), an increase of 7 per cent compared with the first seven months of 2014.

Outstanding credit in Vietnam dong reached VND977.7 trillion ($44.80 billion), an increase of 8.2 per cent year-on-year, while credit in US dollars was VND165 trillion ($7.56 billion), an increase of 0.29 per cent.

Medium and long-term outstanding credit rose 13 per cent since the end of 2014, accounting for 54.5 per cent of the total, while short-term outstanding credit increased 0.79 per cent since the end of 2014, accounting for 45.5 per cent of the total.

Total credit growth in the city was some 7 per cent, with an annual target in place of 13-15 per cent.

Regarding mobilized capital, at the end of July it is expected to be VND1,420 trillion ($65.07 billion), an increase of 6 per cent since the end of 2014.

Remittances in the first seven months are estimated at $2.4 billion.

SCG reports operation results for Q2

SCG’s operating results for Q2 and the first half of 2015 see an increase in profit from the chemical business whose global market margin grew, despite slowdown in other businesses. SCG is pushing ahead with its ASEAN investments according to plan.

Mr. Kan Trakulhoon, President and CEO of SCG, said that the operating results (unreviewed) for Q2/2015 show Revenue from Sales is at 75,879 Billion VND (US$ 3,421 Million), a 9% y-o-y decrease and a 4% q-o-q increase. Profit for the Period stands at 9,251 Billion VND (US$ 417 Million), a 63% y-o-y increase and 25% q-o-q increase, thanks to the much higher global market margins in the chemical business as a result of a significant drop in the prices of raw materials and crude oil. Even though businesses for domestic Cement-Building Materials and Packaging continue to slow down, there are signs of recovery for the second half of the year. SCG’s Revenue from Sales for the first half of 2015 stands at 148,729 Billion VND (US$ 6,769 Million), a 10% y-o-y decrease. Profit for the Period for the first six months of 2015 is at 16,633 Billion VND (US$ 757 Million), a significant y-o-y increase of 48%.

For SCG’s operation in ASEAN (ex-Thailand), the Revenue from Sales in Q2/2015 amounted to 7,324 Billion VND (US$ 330 Million), which is 10% of SCG’s total Revenue from Sales.

As of 30 June 2015, total assets of SCG amounted to 313,023 Billion VND (US$ 14,830 Million), while the total assets of SCG in ASEAN (ex-Thailand) amounted to 59,972 Billion VND (US$ 2,841 Million), which is 19% of SCG’s total consolidated assets.

Based on Q2/2015 report, SCG in Vietnam owned 15,111 Billion VND (US$ 716 Million) worth of total asset, an increase of 16% y-o-y. The company reported Q2/2015 Revenue from Sales at 3,481 Billion VND (US$ 157 Million), which is generally stable compared to previous year.

In H1/2015, SCG in Vietnam reported Revenue from Sales at 6,337 Billion VND (US$ 288 Million), an increase of 3% y-o-y.

For the latest movement in Vietnam, TC Flexible Packaging Company Limited which is a subsidiary of SCG, has acquired an 80% stake in Tin Thanh Packing Joint Stock Company (or “BATICO”).  As SCG has been actively expanding its packaging business portfolio in Vietnam, this investment will strengthen its position as a leading total packaging solutions provider in ASEAN.

Mr. Kan added “For ASEAN markets, SCG found that in the second quarter, demand in cement also continued to rise, especially in Myanmar and Cambodia, where demand rose by 19% and 12% y-o-y respectively, as SCG’s cement is a popular choice and highly regarded for its quality. SCG’s investments in ASEAN will continue to push ahead as planned. Currently the cement plant in Cambodia has begun its 2nd operation line, while operation at the plant in Indonesia will also commence at the end of the year. Construction of the production base in Myanmar will be completed in 2016, while in Laos, the plant will be finished in 2017, ready for the expected increase in demand by ASEAN consumers.”

Lotus Residences add to hot resort property market

Syrena Viet Nam, a subsidiary of BIM Group, will begin selling its second group of units on August 2 at Van Lien (Lotus Residences), a luxury resort townhouse project in Halong Marina Urban Area.

This second offering will make available 72 resort townhouses. The sale in Quang Ninh Province is expected to see interest by hundreds of buyers from Ha Noi, Quang Ninh, Hai Phong, along with other neighbouring provinces and cities.

The sale of Lotus Residences adds to the hot resort property market, which has been busy since the beginning of this year in the country's north.

Also, at the opening of the sale on August 9, the developer will share with investors and buyers updated information about the northern Quang Ninh Province's real estate market, especially the luxury resort property segment as well as its development potential and investment opportunities.

Lotus Residences received much attention from buyers, with all 48 units purchased during the first sale held at the end of June. Lotus Residences, covering 40,000 square metres with 159 townhouses, is one among high-profile projects in Halong Marina Urban Area and is set in a prime location in the urban area.

According to Syrena Viet Nam, since the beginning of 2015 the resort property market has warmed up significantly, with the emergence of many projects worth billions of dollars.

However, as investors are becoming increasingly strict in the selection of real estate products following the market crash in 2008, only by providing quality and promising a high return on investment could residential projects attract buyers.

With experiences in the hotel construction, management and operations, combined with thorough market research, Syrena Viet Nam said it believed that Lotus Residences would meet market expectations and provide valuable opportunities to own beach-front townhouses in the tourism city.

The success of the first sale of Lotus Residences signaled that the resort property segment was recovering, according to Syrena Viet Nam.

A representative from G5 Property Trading Floor Alliance, Lotus Residences' distributor, said the attraction of the project is not only coming from its prime beachfront location, but also due to the promise of profits. As the rental pool system will be put in place at Lotus Residences, the developer guarantees an annual fixed profit of 5 per cent of townhouse values in the first two years and 65 per cent of leasing profits from the third year. Homeowners will enjoy 60 days of accommodations and use for free.

Lotus Residences' 4-storey townhouses have areas ranging between 95 square metres to 130 square metres.

The project has resort-like amenities, including all-season swimming pool, modern gym, green park and children's playground. Also, there is connectivity with other recreational and tourism centres, such as Halong Marine Plaza, Ha Ling Night Market, Bãi Chay Beach and Tuan Chau Complex.

In the second sale, buyers will have the chance to join a lucky draw for a Mazda 6 automobile.

The project is expected to be completed in the third quarter of this year after 14 months of construction.

VN's trade deficit reaches $3.4b in first seven months

Viet Nam's trade deficit was estimated to have reached US$3.37 billion in the first seven months of this year, $300 million more than $3.07 billion in the first half of this year, the General Statistics Office (GSO) reported yesterday in Ha Noi.

The office said imports showed an upward trend during the first seven months while exports remained unchanged.

Viet Nam's total import value in the first seven months was estimated to have increased by 16.4 per cent year-on-year to $95.64 billion.

The imports mainly included machines, components and equipment for production and exports.

The import value registered a year-on-year surge of 35.1 per cent for machines, equipment, tools and components to reach $16.56 billion; 35 per cent for telephone and its components to reach $6.12 billion; 34.5 per cent for electronic products, computer and their components to reach $13.89 billion; and 15.1 per cent for steel to reach $4.66 billion.

Meanwhile, auto imports showed a strong increase of 97.9 per cent in value to reach $3.41 billion against the same period during last year.

The largest importer for Viet Nam goods was China with a total import value of $28.8 billion in the first seven months, a year-on-year surge of 22.5 per cent. Other large importers included ASEAN, Japan, the EU and the US.

The GSO reported that Viet Nam's export value was expected to show a year-on-year surge of 9.5 per cent to $92.27 billion in the first seven months of 2015.

The export value growth was not high in the seven months because export value of the domestic economic sector registered a plunge of 1.7 per cent to $27.57 billion against the same period of last year.

Meanwhile, the foreign direct invested (FDI) enterprises contributed $64.69 billion to the total national export value in the first seven months, a surge of 15.1 per cent.

Value of key export products saw a fall in both, volume and value, compared with the same period of last year, due to high competition in the world market. They included coffee (down 33 per cent to $1.65 billion), rice (down 8.7 per cent to $1.59 billion), seafood (down 15 per cent to $3.62 billion) and crude oil (down 47.1 per cent to $2.45 billion).

Nam Long issues shares to Keppel subsidiary

Nam Long Investment Corporation has sold a little over a 5 per cent stake to Ibeworth Pte., Ltd, which is fully owned by giant Singaporean developer Keppel Land Limited.

Ibeworth bought 7.1 million shares for VND140 billion (US$6.42 million), or VND19,700 a share, through a private placement in June. Nam Long has been trading at around VND19,000 on the stock market for a few months now.

Commenting on the deal, Nam Long chairman Nguyen Xuan Quang said, "The acquisition of a stake by Ibeworth will create opportunities for us to collaborate with top international investors in the real estate sector."

Keppel Land and NLG will explore opportunities to collaborate in future projects as strategic partners. Nam Long is known for its affordable housing under the Ehome brand name in areas including HCM City and Binh Duong. Its other foreign shareholders are VAF, a fund managed by Mekong Capital, IFC, a member of the World Bank, and Nam Viet Company, which is wholly owned by Goldman Sachs.

Government to sell off stakes in 2 companies

The Government has approved a State Capital Investment Corporation (SCIC) proposal to divest its stakes in two companies.

SCIC holds shares of the Southern Waterborne Transport Corporation (Sowatco) and Mechanization Electrification Construction Corporation Joint Stock Company (AGRIMECO) on behalf of the Government.

The two companies were respectively equitised in 2008 and 2013, and the Government now owns 66.58 per cent of Sowatco and 29 per cent of AGRIMECO.

Sowatco, founded in 1975, is run by the Ministry of Transport and has a chartered capital of VND671 billion (US$30.5 million). It has interests in waterway transport, cargo handling, engineering and shipbuilding, design consultancy, and construction.

AGRIMECO, founded in 1996, belongs to the Ministry of Agriculture and Rural Development and as a charter capital of VND215 billion ($9.7 million).

It manufactures pumps, hydraulic and processing equipment, hydro mechanical products, and farm machinery and carries out various projects related to hydropower, irrigation, dykes, and dams.

Last month the Government gave the green light for batch divestment in four enterprises - Vietnam Railways, Vietnam Motors Industry Corporation Joint Stock Company, Civil Engineering Construction Corporation No 5 Joint Stock Company (Cienco 5), and Cienco 6, all run by the Ministry of Transport.

Luxury apartments open for phase 1 sale in Hanoi

Last weekend (July 25) 500 apartments belonging to Imperia Garden office, housing and commercial complex have found buyers in phase 1 sale round at Daewoo Hotel in Hanoi’s Ba Dinh district.

Commenced since January and launched into the market in May 2015, Imperia Garden has attracted the attention of numerous customers thanks to the unique model of ‘Your own garden in the city’ with luxury apartments at reasonable prices from only VND2.3 billion ($107,000)/apartment.

Therefore, in the official selling ceremony, hundreds of customers were looking forward to the deposit time to instantly own luxury apartments at Imperia Garden.

Commenting on the factors that make Imperia Garden get great expectations from the market in recent years, the developer representative said, “The value that Imperia Garden brings to customers and future residents is not only an ordinary apartment but also living values and a high-end life. ‘Your own garden in the city’ apartments of HBI are created by a system of facility and value-added services as well as fresh living space where residents will enjoy a professional management service, experience a high-end life and property values are maximised.”

“Imperia Garden is highly evaluated thanks to not only the ideal settling-in place but also a safe investment opportunity with guaranteed profit,” the source added.

Located on the two façades of Nguyen Huy Tuong Street and Nguyen Tuan Street in Hanoi’s Thanh Xuan district, Imperia Garden office, housing and commercial complex is built on an area of 42,000sq.m, with the area for greenery, landscaping, facilities and education covering more than 10,000sq.m.

Imperia Garden apartments have flexible areas and design from two - four bedrooms at only VND2.3 billion for a luxury apartment in the heart of Hanoi.

Residents of the project will easily travel to the surrounding areas and neighborhoods because Imperia Garden is located among the key transport axes such as metro lines and the elevated highway of Hanoi.

As the first Imperia brand in Hanoi to be created by renowned design firms such as NKB Archi (France), CPG Consultants (Singapore), PTW Architects (Australia) and ACI, Imperia Garden is guaranteed in terms of progress by Vietnam Prosperity Bank – VPBank, developed by M.I.K Corporation and distributed by Real Estate Project Supermarket System STDA.

Imperia Garden is one of the first projects to be guaranteed relating to construction progress by Vietnam Prosperity Bank, VPBank.

Developer HBI Joint Stock Company is among the pioneer developers who are committed to handing over the ownership certificate of apartment owners and by then, the customers will need to pay the last installment.

With a flexible financing solution meeting the customers’ diverse affordability divided into eight installments, customers only need to pay 95 per cent of the contract value by the time apartments are handed over. The remaining 5 per cent will be paid when the developer gives the ownership certificate of the apartment.

Along with flexible payment schedule, developer HBI offers an attractive 8.5 per cent price discount for customers who can pay before the deadline. For those wishing to borrow, VPBank will support with special incentives for Imperia Garden prospective buyers.

Specifically, VP Bank will lend up to 80 per cent of the apartment value at just 6.9 per cent interest rate per annum and the first two year grace period.

This offer from VPBank will enable many customers, especially young families, with the initial accumulation of VND500 million ($23,300) to own a luxury apartment with all amenities and guaranteed perfect quality of life in the capital.

Commenced from January 2015 and constructed by prestigious contractors such as Licogi, CotecCons and Hoa Binh Corporation, the project is expected to be completed and officially handed over to customers in mid-2017.

Tran Anh opens first electronics hypermarket

Tran Anh Digital World JSC has recently put into operation its first electronics hypermarket, at 18 Pham Hung Street in Hanoi’s Nam Tu Liem district, on an area of 4,800 sq m.

This is the first step in the company’s plans to change its stores’ scale from less than 1,500 sq m to between 4,000 and 6000 sq m in the next five to ten years.

According to Mr. Tran Xuan Kien, Chairman and CEO of Tran Anh Co., the new electronics hypermarket is its first facility to apply service and quality standards set by Japan’s Nojima Corporation, whose shareholding is almost 31 per cent.

Tran Anh is expected to develop electronics hypermarkets, which not only include showrooms but also integrates different services, including a product trial area, amusement areas for children, bars and coffee shops, and even a free car wash area for customers, among others, in the future.

Tran Anh recorded VND811 billion ($37.1 million) in net revenue as at June 30, an increase of 1.43-fold against the same period last year. Profit after tax also reached VND10.6 billion ($485,800) in the first six months, an increase of 2.3-fold year-on-year.

First Vincom opens in Mekong Delta

Vincom Hung Vuong, the first shopping center of the Vingroup in the Mekong Delta, was officially opened in Can Tho city on July 26 after eight months of quick construction.

“The opening of Vincom Hung Vuong marks an important step in bringing the Vincom retail brand to the Mekong Delta, beginning in Can Tho, with centers to come in An Giang and Bac Lieu in the future,” said Mr. Le Khac Hiep, Vice President of Vingroup. “As a shopping center with modern entertainment, we hope to contribute to the development of Can Tho and surrounding areas.”

The center covers an area of 18,000 sq m, including five floors and one basement. It has a full range of commodities, such as fashion goods, accessories, cosmetics, electrical appliances, furniture, stationery, children’s products, and food and beverages.

A large Vinmart supermarket will sit on area of 1,200 sq m, providing a diverse range of quality goods at competitive prices. VinPro, an electronics retail outlet on the third floor, sells phones, tablets, laptops and other electronic, as well as refrigerators and electrical appliances and accessories with convenient delivery and after-sale services.

Besides meeting modern shopping needs, Vincom Hung Vuong is also a venue for local people to enjoy arts, culture and entertainment. The most unique feature of the center is an ice rink, Vinpearlland Ice Rink Can Tho, where young people can enjoy ice skating and hockey. CGV, a famous cinema chain in major cities such as Hanoi, Ho Chi Minh City and Da Nang, can also be found at the new center.

WB project improves sanitation in coastal cities

The World Bank’s development objective in the Coastal Cities Environmental Sanitation Project for Vietnam is to improve environmental sanitation in project cities in a sustainable manner and thereby enhance the quality of life for residents.

According to results announced on July 27, the project provided drainage, wastewater collection, treatment plants, and solid waste management facilities, and conducted a comprehensive capacity building program in the cities of Dong Hoi, Quy Nhon, and Nha Trang in Vietnam’s central and south-central coastal regions.

More than 800,000 residents benefited from improved solid waste management, with about 250,000 becoming safer from reduced flooding, while 66,500 students have better sanitation facilities at schools and 8,452 poor families received funds for upgrading their toilets.

“The project has changed the landscape of Dong Hoi and added more points to its score as a second tier city, which in more specific terms means that 75 per cent of the population and visitors can benefit from sewage and waste water treatment services,” said Mr. Nguyen Huu Hoai, Chairman of the Quang Binh Provincial People’s Committee. “Trees have been planted along sewage canals, lighting systems has been erected, and small ports have been upgraded, among other things. This has made Dong Hoi a modern and environmentally-friendly and sustainable city.”

The World Bank’s International Development Association provided $190 million to the project, together with a trust fund from the Japanese Government of $4.6 million and a Global Environment Fund (GEF) grant of $5 million.

Hung Yen longan ready for shipment to United States

Longan growers in the northern province of Hung Yen are preparing for the harvest of the fruit, a distinct produce of the province, in mid-August, part of which will be exported to the United States.

Deputy Head of the provincial agriculture department Doan Thi Chai said the province has 20 hectares of longan trees belonging to 175 households in Ham Tu commune of Khoai Chau district and Hong Nam commune of Hung Yen city, which have been granted regional codes for export to the US.

According to farmers in these two regions, harvest will come in less than three weeks, farmers and farm-workers have been given training and financial support for plant protection in addition to longan preservation bags to ensure optimum quality of the fruit to be exported.

Since the codes were granted, growers in Ham Tu and Hong Nam have been strictly following the Vietnamese good agriculture practice (VietGAP), using only permitted biopesticides to ensure the safety of the fruit.

Bui Van Tam from Hong Nam said considering the US as an important import market, local farmers have been taking great care of their plants by investing in premium fertilisers and spending more time on the field.

Another farmer from Ham Tu said compared with the traditional cultivation technique, the new practice requires more efforts and will reduce output, estimated at 10 tonnes per hectare, however the overall appearance of the product will be more attractive and able to meet the high export standards.

Currently local experts and those from the Ministry of Agriculture and Rural Development are working closely with farmers in the regions previously granted with codes to ensure the produce meets the required criteria.

Provincial agriculture and trade officials are also planning promotional events to approach experienced fruit exporters in Hanoi and Ho Chi Minh City to advertise the fruit more widely and create conditions for expanding the export market.

Vietnam seeks to boost exports to Russia

The Hanoi-Moscow Trade Center in Russia will be organizing a trade fair in Moscow from November 12 to December 12 to introduce Vietnamese goods to Russian consumers.  

The high-quality Vietnamese goods fair 2015 in Moscow is part of a series of activities to be conducted following Vietnam’s signing of a free trade agreement (FTA) with the Eurasian Economic Union.  

According to Nguyen Canh Son, chairman of Hanoi-Moscow Trade Center Investment Joint Stock Company (INCENTRA), the forthcoming fair aims not only to sell products but also to explore the market.

The fair’s organizers will assist enterprises joining the fair. In particular, Vietnam Airlines will reduce airfares for Vietnamese exhibitors while the Bank for Investment and Development of Vietnam (BIDV) will financially support preparations for the event. INCENTRA will provide free booths, a 50% reduction in hotel costs at Hanoi-Moscow Hotel, and transport costs.

Russia-based Rus Event Project will send invitations to more than 12,000 importers, distributors and retailers of Russia.

“We will assist enterprises in opening offices and stores in Russia to do long-term business there,” Son said.

According to Bui Dinh Dinh, former Vietnamese Ambassador to Russia, Russia is a market with high growth potential. Due to the ongoing U.S. and Europe sanctions against Russia over the Ukraine crisis, Russia has high demand to import machines, equipment, farm produce and seafood.

However, enterprises new to the Russian market will have difficulty accessing it due to language barriers as English is not popular there. Russia’s business culture is different from other countries. The value of the Russian ruble has declined sharply against the U.S. dollar due to the Western sanctions.

Therefore, those enterprises planning to enter the Russian market should seek help from the Vietnamese Business Association in Russia. “The association has big member enterprises which are very helpful,” Dinh said.

Regarding the issue of payment, Phan Thi Thanh Nhan from BIDV said the bank is coordinating with leading commercial banks in Russia to establish a payment channel to facilitate trade payments between the two countries.

The service enables enterprises to make payments using hard currencies as well as the Russian ruble and Vietnamese dong.

Vietnam, Canada discuss business opportunities

A forum for business cooperation between Vietnam and Canada took place on July 28 in Ho Chi Minh City, bringing together 200 businesses from both sides to discuss cooperation in economics, education, technology and the environment.

The event was jointly organised by the Ho Chi Minh City Union of Business Associations (HUBA), the Vietnam Private Business Association (VPBA) and the Southeast Asia Canada Business Council (SEACBC).

In his remarks at the forum, Senior Trade Commissioner and Consul General of Canada in Ho Chi Minh City Marcel R. Laneville said Vietnam is the main focus of Canada’s international development assistance projects.

Over the past few years, trade between the two countries has expanded rapidly and its growth rate is expected to surpass trade between Canada and other ASEAN markets this year, the trade commissioner noted.

He hoped that cooperation between the two sides’ small- and medium-sized enterprises would yield fruitful outputs.

Vietnamese Consul General in Vancouver Tran Quang Dung believed now is a good time for bilateral trade between Vietnam and Canada to reach a new level as Vietnam is part of the negotiations for the Trans-Pacific Partnership (TPP) agreement.

SEACBC President Carmelita Salonga Tapia said Canadian enterprises are seeking business opportunities in solar energy, education and vocational training, healthcare, foods and green development projects.

Hi-tech agriculture, sustainable tourism for rural development in Mekong sub-region

Experts from Vietnam, Laos, Cambodia and the Republic of Korea (RoK) gathered in Da Lat city in the Central Highlands province of Lam Dong on July 28 to join a conference on enhancing rural development in the Greater Mekong Sub-region (GMS) by developing hi-tech agriculture and sustainable tourism.

The event introduced policies and solutions to foster hi-tech agriculture and sustainable tourism in Vietnam, Laos and Cambodia; shared practices; and discussed cooperation prospects between the three nations.

Speaking at the conference, President of the Vietnam Academy of Social Science (VASS) Nguyen Xuan Thang said Vietnam, Cambodia and Laos have great potential to develop agriculture and tourism to help reduce poverty and narrow the equality gap between rural and urban areas.

Hi-tech agriculture and sustainable tourism could be suitable avenues for the three countries to get closer to their targets on sustainable development, he stressed.

Several individuals and businesses pioneered the application of advanced technology in agricultural production in Vietnam back in 2008-2009. A number of localities, including Ho Chi Minh City, Hanoi, Thanh Hoa, An Giang and Dong Thap, have also kicked off their own hi-tech agriculture projects.

Some 30 hi-tech agricultural park projects have been established in 13 cities and provinces across the country to date, seven of which are operational.

Lam Dong province is renowned for its success in developing hi-tech agriculture with nearly 40,000 hectares of lands for hi-tech agricultural production, or 15 percent of its total agricultural lands, producing 30 percent of the local agricultural revenue.

Each hectare of hi-tech farming areas generates an estimated average of 6,500 USD every year, with some areas reaching as high as 23,000 – 91,660 USD per hectare per year.

Nguyen Quang Dung, Director of the National Institute of Agricultural Planning and Projection noted that Vietnam is willing to share experience and support Laos and Cambodia in formulating incentive policies for hi-tech agriculture and sustainable tourism and nurturing research and training cooperation.

Boundeth Southavilay from the Laos Ministry of Agriculture and Forestry said that international cooperation is a key driver of the country’s agriculture development, particularly overseas investment that helps enhance local capability and infrastructure development.

Party Economic Commission to propose industry expansion policies

Designing a strategy for the development of material industries supporting national industrialisation and modernisation from 2015-2020 is among the key tasks of the Party Central Committee’s Economic Commission for the rest of the year, as heard at a conference on July 28.

In the last six months of 2015, the commission will also focus on orientations for policies to boost Vietnam’s industries from 2016-2020, and on speeding up the industrialisation of the agriculture sector in association with the building of new-style rural areas.

Through studying the developments of the population, the commission will propose policies for the country’s sustainable growth and tourism improvement.

The commission plans to research scientific and practical factors for socio-economic expansion along the land border line.

At the same time, the commission will build policies to mobilise and enhance the efficiency of official development assistance and foreign preferential loans serving socio-economic growth for 2016-2020 and beyond.

The commission is also tasked with giving advice on policies for regional and cross-regional economic growth, as well as business type reform during the economic restructuring process.

It is also expected to propose specific policies for nuclear power projects and measures to conclude Trans-Pacific Partnership negotiations.

Along with assessing proposals on economics, the commission will also instruct and supervise the implementation of resolutions by the Party Central Committee, Politburo and Party Central Committee’s Secretariat, especially those on regional economic development.

Another major task for the commission is to continue contributing ideas to draft political reports at Party Congresses in provinces and cities and building draft documents for the 12th National Congress.

Ha Nam draws Japanese investment in agricultural production

The northern province of Ha Nam has offered incentives for Japanese investment in hi-tech local agricultural production, Secretary of the provincial Party Committee Mai Tien Dung has said.

During a reception on July 28 for a group from the Japanese Seibu Nousan Company who are visiting Vietnam to seek investment opportunities in the province, Dung said the locality has focused on improving infrastructure facilities such as roads and electricity and irrigation systems to facilitate Japanese investment.

As many as 56 hectares have been zoned off to grow the high-yield and high quality Japonica rice variety in the province, Dung said, adding that the traditional farming techniques have resulted in low productivity.

He urged the company to introduce advanced technologies in the production process to enhance the productivity and quality of the rice.

Director of Seibu Nousan Vietnam Akira Ichikawa hailed the local agricultural potential and business climate, especially incentives for Japanese investors.

He expressed his wish to grow the rice variety on 20 trial hectares with the application of technology and strict quality management procedures.

The company is also willing to transfer technology to the locality in a bid to raise the quality of local rice for domestic demand and export.

The Seibu Nousan Company, established 30 years ago, has developed 830 hectares of rice and other crops in Japan.

The company opened its branch in Vietnam early this year.

Vietnam Airlines announces “Golden Autumn 2015” programme

The national flag carrier Vietnam Airlines on July 28 announced its annual “Golden Autumn 2015” programme for both domestic and international routes.

Accordingly, passengers can purchase air tickets at a starting price of 199,000 VND (9 USD) for a return ticket on some international routes and 333,000 VND (15.8 USD) for a number of domestic routes from August 12-26, 2015 and travel during the period from August 16, 2015 to March 31, 2016.

The special prices do not include taxes or surcharges and may vary in line with the flexible interest rate set by the State Bank of Vietnam at the time of purchase. The promotional deal is not applicable during the peak period.

Earlier, Vietnam Airlines also announced the “Golden Moment” programme, offering special prices for domestic routes from July 15-31, 2015.

Vietnam remains among world’s top optimistic markets: Nielsen

Vietnam remains among the top ten most optimistic markets globally, despite a strong decline in consumer confidence in the second quarter of this year, a consumer insight firm said.

Vietnam’s consumer confidence dropped eight points, the biggest quarterly fall in Southeast Asia, to 104 points in the April-June period, according to Nielsen’s second quarter Consumer Confidence Index released Monday.

Malaysia posted the region’s second largest drop in consumer confidence, going from 104 in the first quarter to 89.

Vietnam, the Philippines, Indonesia, and Thailand are among the top ten most optimistic markets globally, despite their index declines, according to Nielsen.

The Philippines and Indonesia’s consumer confidence index both scored 120 in the second quarter, and Thailand, 111.

The Nielsen consumer confidence index measures perceptions of local job prospects, personal finances and immediate spending intentions.

Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.

The survey for the second quarter was conducted between May 11 and 29, polling more than 30,000 online consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America.

“Consumers from Southeast Asia continue to show the highest optimism globally in the second quarter with an index score of 112, far-surpassing the global consumer confidence score of 96 points,” Nielsen said in a press release on Monday.

However, Regan Leggett, Nielsen client service director in Southeast Asia, North Asia and Pacific, remarked that some “signs of vulnerability” have emerged in certain markets in Southeast Asia, where optimism remains high.

“Vietnam [is] starting to face headwinds such as declining foreign direct investment and a struggling retail environment,” he said.

Besides being the most optimistic, Southeast Asian consumers continue to be among the world’s most conscientious savers, with seven in 10 funneling their spare cash into savings, according to the report.

Consumers in Vietnam are the biggest savers globally, with 73% putting aside cash for a rainy day.

Fifteen percent of Vietnamese consumers are channeling their spare money into building their retirement fund.

As the general cost of living continues to increase across Southeast Asia, 86% of consumers in Vietnam have adjusted their spending habits over the past 12 months in a bid to reduce household spending, according to the report.

In the meantime, 60% of Vietnamese consumers are spending less on new clothes.

Increasing fuel prices are the biggest concern of Vietnamese consumers in the next six months, the Nielsen report shows.

“The Vietnam retail environment has evolved from one of the fastest growing markets in 2012 to one that’s struggling to remain in growth,” said Vaughan Ryan, managing director with Nielsen Vietnam.

“Consumers are feeling less optimistic about their immediate future, but they are confident in the longer term, as most expect the economy will improve in the year ahead.”

Nielsen is a global performance management company that provides a comprehensive understanding of what consumers watch and buy.

BreadTalk Vietnam to open three new bakery outlets

BreadTalk Vietnam has planned to open two new bakery outlets in Ho Chi Minh City and Bien Hoa City, Dong Nai province, this August.

The company is also scheduled to open a store in Aeon Mall, Hanoi this September for the first time as part of activities marking its fifth anniversary of establishment in Vietnam.

The chain of bakery outlets now consists of 15 stores in Ho Chi Minh City, Binh Duong province, Vung Tau province and Nha Trang City.

BreadTalk Vietnam is a branch of BreadTalk Group Limited, which is a listed Singaporean bakery, founded in July 2000. It operates a chain of retail outlets through its subsidiary BreadTalk Pte Ltd, selling a wide variety of bread, cakes, buns and pastries.

Footwear exports to US skyrocket

Vietnam’s footwear exports jumped 21.2% to more than US$5.85 billion in the first half of this year, according to statistics released by the General Department of Vietnam Customs.

Of the figure, exports to the US rose rapidly by 30.2% to US$2 billion, which was equal to export earnings from the EU market with a growth of 17%.

The EU has been the biggest importer of Vietnamese footwear for many years. For example in 2009, footwear exports to the US were around US$1 billion, which was half of the value earned from the EU market.

Truong Thi Thuy Lien, Director of Lien Phat Footwear Company in Binh Duong province said footwear exports in the second quarter of this year thrived and most footwear businesses have had orders up to the end of February next year.

Currently, FDI and domestic businesses tend to focus on the US market, Lien revealed.

According to statistics from the Office of Textiles and Apparel (OTEXA) of the US Department of Commerce (DOC), the US imported more than US$1,101 billion worth of footwear products in the first five months of this year, of which imports from China accounted for over 78% and from Vietnam, 12%.

However, OTEXA said that footwear imports from China have reduced continuously from 2010. Meanwhile, imports from other Asian countries, particularly from Vietnam, have increased sharply in recent years as US businesses are finding ways to be less dependent on China.

Nguyen Duc Thuan, President of the Vietnam Leather and Footwear Association (Lefaso Vietnam) said the sector is likely to fulfil its target of US$14.5 billion exports with an annual growth of 20% set by the Ministry of Industry and Trade.

Rice export exceeds 2.8 million tonnes

Vietnam earned almost US$1.2 billion from shipping more than 2.8 million tonnes of rice to foreign markets since the outset of this year, according to the Vietnam Food Association (VFA).

The VFA also said that the domestic prices remain stable, ensuring profits for farmers.

Mekong Delta provinces are currently planting summer-autumn crops across 1.7 million hectares and harvesting 3.54 million tonnes of rice in 650,000 hectares, favourable conditions for enterprises to collect material rice for export at the end of 2015.

In 2014, Vietnam exported 6.32 million tonnes of rice, earning US$2.84 billion and becoming the third largest rice exporter in the world after Thailand and India, according to the association.

VietAd 2015 to attract 250 businesses

The 6th Vietnam International Advertising Equipment and Technology Exhibition (VietAd 2015) is set to get underway from July 29 to August 1 at Tan Binh Exhibition and Convention Centre in Ho Chi Minh City.

On display will be 250 stalls of Vietnamese and foreign businesses from Japan, the Republic of Korea, Taiwan, China, Thailand and Malaysia.

They will showcase display advertising technology (such as digital, offset, and photo printing machines, laser and vinyl cutting machines, CMC machine), and LED technology (including LED decorative light, LED light, LED display).

During the event, a seminar on advertising trends and an advertising competition among Vietnamese businesses will be held.

Besides, the organizing board will introduce AdAsia Taipei 2015 held in Taiwan in the coming time and Taiwan’s experience on advertisement.

VietAd has been organized annually since 2010. It has tie-ups with many major regional advertising exhibitions such as the Korea International Sign & Design Show, Digital Signage Japan, Sign China, and Sign Asia Expo in Thailand.

Agri-forestry and seafood exports decline

Agri-forestry and seafood exports in July are estimated at US$2.47 billion, bringing the total export revenue in 7 months to US$16.93 billion, down 3.6% against the corresponding period last year.

The Ministry of Agriculture and Rural Development reported that exports of key agricultural products are around US$8.2 billion, down 5.7%, especially coffee (down 33.7%), rubber (down 9.2%) and rice (down 8.3%).

For instance, the average export price of rice for the first half of this year was US$431.16 per tonne, down 4.64% over the same period last year. China remained the biggest importer of Vietnamese rice.

However, the average export price of coffee rose 0.97% despite a strong decrease in export value and volume.

Germany and the US remain biggest consumers of Vietnamese coffee.

Meanwhile China, Malaysia and India were the three largest importers of Vietnamese rubber in the first half of this year and accounted for 72.4% of market shares. Rubber exports enjoyed growth in two major export markets – China (up 21.9%) and India (23.1%) while eight other key markets witnessed decline.

Seafood exports dipped 17% to US$3.53 billion in the period, especially the US (down 27.71%).

However, exports of major forestry products jumped 8.1% to US$3.88 billion.

Consumer confidence index declines

Reversing the earlier trend, the Viet Nam Consumer Confidence Index declined to 104, a decrease of 8 percentage points from the first quarter and the biggest quarterly decrease in Asia Pacific, according to the latest survey released on Monday by global information and measurement company Nielsen.

Vaughan Ryan, managing director, Nielsen Viet Nam, said: "The Viet Nam retail environment has evolved from one of the fastest growing markets in 2012 to one that's struggling to remain in growth, with sales levels between 2 per cent-3 per cent for most of the last 12 months."

Consumers are feeling less optimistic about their immediate future, but are confident in the longer term, as most expect the economy to improve in the year ahead, he said.

For the first time in well over a decade Viet Nam experienced a decline in the Consumer Price Index in February, while foreign direct investment was down over 20 per cent year-on-year in the first quarter.

The Nielsen Global Survey of Consumer Confidence and Spending Intentions polled more than 30,000 online consumers in 60 countries throughout the Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America.

Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

The report also reveals that confidence levels in Southeast Asia remain relatively high compared to other parts of the globe despite a decline in most countries in the second quarter. The Philippines was the only market where consumer sentiment strengthened, gaining seven points to rise to a score of 122 - the second most confident consumers globally.

Indonesia ranked third with a score of 120 points while Thailand retained fifth place with 111. Consumer confidence levels fell by 1 percentage point to 99 in Singapore and by 5 points to 89 in Malaysia.

Southeast Asian consumers continue to be among the world's most avid savers, with close to four in five (70 per cent) channelling their spare cash into savings compared to just 48 per cent globally.

Viet Nam scored the highest globally (73 per cent) followed by the Philippines (72 per cent), Indonesia (69 per cent), Singapore (66 per cent), Thailand (66 per cent), and Malaysia (65 per cent).

Saving on household expenses continues to be the top priority for Vietnamese consumers with 86 per cent adjusting their spending habits over the past 12 months to save on household expenses because most think the country is in a recession at the moment.

More than three out of five Vietnamese consumers have reduced their spending on new clothes and gas and electricity. Around half have cut down on out-of-home entertainment (57 per cent) and delayed upgrading their technology devices (48 per cent)

However, after covering essential living expenses, nearly half of Vietnamese consumers are willing to spend on big ticket items such as vacations (45 per cent) and new clothes as well as home improvement (35 per cent).

The state of the economy remains a key concern for consumers over the next six months in Southeast Asia (18 per cent), particularly in Malaysia (28 per cent) and Thailand (26 per cent). Other major worries in the region include job security, health and work-life balance.

Job security and the economy were back as the top concerns for Vietnamese consumers (14 per cent) followed by health (13 per cent).

Vietnam builds luxury cruise for Myanmar

The luxury river cruiser “Anawrahta”, owned by Heritage Line, has left Ho Chi Minh City aboard the heavy lift vessel, Rolldock Storm, bound for a 5-day journey to Myanmar where it will ply the Ayeyarwady and Chindwin Rivers beginning mid-September 2015.

“Myanmar is a very hot destination with a lot of potential because it’s practically untouched by the commercial world,” said Maarten Perdok, managing director of Heritage Line Co., Ltd., of the country that has been named “Destination of the Year” by Travel + Leisure magazine. “The Ayeyarwady is a stunning river to cruise and explore. In fact, river cruising is one of the best ways to discover a country and its culture. You get to see the country from a different angle and go to places other tourists don't because there are simply no roads going to those places. This is especially true in Myanmar where infrastructure is lacking, making cruising one of the best, if not the best way to travel the country.”

Built entirely in Vietnam over 14 months, the 23-cabin luxury vessel has an aluminum superstructure on top of a steel hull. “Because of the low water levels in Myanmar, we used a lot of lightweight materials for this cruiser which are typically not used,” said technical director Stefan Malin. “We took advantage of the experience we had from building two other ships, bringing together the right contractors and the right materials to build a very high-quality vessel.”

The Anawrahta will sail on four different itineraries ranging from 4 to 11 nights, visiting ports including Yangon, Bagan, Mandalay and Homalin. The longest itinerary is the 901-mile, 12 day / 11 night journey from Mandalay to Homalin on the Chidwin river and ending in Bagan on the Ayeyarwady river, with excursions to textile and silversmithing workshops, temples and convents and teak forests with working elephants, amongst others.

Guests on the four-deck Anawrahta can expect a five-star experience, including the highest crew-to-passenger ratio (46 crew serving 46 passengers) and the largest cabins on the Ayeyarwady river all with private balcony, luxury amenities, world class cuisine and unique excursions as well as daily onboard lectures and entertainment.

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