Khanh Hoa Sanest Beverage earns $10m from IPO     

Khanh Hoa Sanest Beverage Company earned VND222.7 billion (US$9.8 million) from the sale of nearly eight million shares at its initial public offering (IPO), the HCM City Stock Exchange said.

The starting price for the IPO was VND23,000 per share.

The auction on Monday attracted eight organisations and 285 individuals, who registered to purchase 20,677,820 shares.

The highest bid price was VND80,000 per share, the lowest price was VND25,300 per share and the average was VND27,937 per share, 21.5 per cent higher than the starting price.

Two organisations and 132 individuals won the bids.

Khanh Hoa Sanest Beverage specialises in the production of processed milk and dairy products, non-alcoholic beverages and mineral water, along with selling retail and wholesale beverages and food products.

The company is among five subsidiaries of the Khanh Hoa Salangane Nests Company, with initial charter capital of VND220 billion on the launch day of January 28, 2016.

Last year, the company posted revenue of VND535 billion, accounting for 62 per cent of Khanh Hoa Salangane Nests Company’s total revenue.

Besides exporting products to the United States, mainland China, Taiwan and Hong Kong, Khanh Hoa Salangane Nests Company has also set up branches in other ASEAN countries. 

Better management of BOT, BT projects needed: inspectorate

The Government Inspectorate has found irregularities in the management of BOT (Build-Operate-Transfer) and BT (Build-Transfer) projects in HCM City, including the use of inappropriate contractors.

The Inspectorate’s report, which examined the implementation of BT and BOT projects in HCM City, found that the city was mobilising resources properly to invest in infrastructure, but had several shortcomings in investment preparation, including the publication of lists of projects, selection of investors, and preparation and approval of reports on project feasibility.

In addition, shortcomings were found during the investment execution process, which included contract signing, project progress, bidding and selection of contractors, acceptance of payments, and maintenance.  

Based on the findings, the Inspectorate recommended that Prime Minister Nguyễn Xuân Phúc instruct the ministries of transport, construction, finance, and planning and investment as well as the city People’s Committee to take action to remedy the situation.

The Inspectorate asked the ministries of planning and investment, finance and transport to work with the Government on issuing appropriate documents or regulations on paying back the capital of BOT and BT projects.

The ministries were also requested to develop a policy for maintenance and repair expenses to ensure economic efficiency and to improve management, inspection and supervision of projects.

The HCM City People’s Council was told to approve investment policies for BOT projects before issuing investment registration certificates so that returns on investment could be ensured.

The city People’s Committee was urged to direct the Department of Construction to compile statistics on projects funded with State capital in the city.

Speaking at a recent meeting in HCM City, Võ Văn Hoan, head of the People’s Committee Office, said the city had faced numerous challenges in developing infrastructure projects since the early 2000s, especially a shortage of funds.

He said that many road infrastructure projects in the city required huge amounts of capital but the city’s budget was overstretched, while budget allocations by the central Government were insignificant.

To deal with the capital shortage, the city has sought stronger private sector engagement by developing infrastructure projects under the BOT or BT investment models.

From 2010 to 2015, HCM City signed contracts with eight investors to develop 13 road and environmental protection projects under the BOT or BT model with total investment of nearly VNĐ33 trillion (US$1.45 billion).

Five of them have been completed, while the remaining eight projects are still under construction.

The Government Inspectorate said that many of the projects now underway are moving at an extremely slow pace, leading to losses and cost overruns.

SBV issues new regulations     

The latest instructions from Le Minh Hung, Governor of the State Bank of Viet Nam (SBV), require credit institutions and commercial banks in Viet Nam to strictly comply with the SBV’s regulations on mobilising capital in foreign currencies and not offer interest rates exceeding the ceiling levels.

The SBV’s intention is to ensure a balance between mobilised capital and lending capital, which is a way to minimise systematic risks in providing foreign currency credit.

Issued on Wednesday, an official document numbered 7295/NHNN-TTGSNH from the SBV demands credit institutions keep a close watch on foreign currency credit growth rates, while monitoring the ratio between credit and capital mobilisation in foreign currencies so that an equilibrium is maintained.

In particular, the SBV requested their local offices and other inspection authorities to monitor commercial banks’ other practices to ensure that official regulations on foreign currency interest rates are respected and implemented.

Document 7295 stated that any infringement of the SBV’s regulations would lead to a number of penalties, depending on the level of violation. These range from denial of granting permits for opening new banking branches, representative offices or ATMs, to prohibition of issuing new services.

Competition among credit institutions by offering foreign currency interest rates exceeding the regulated ceiling levels would also result in penalisation from the SBV.

The SBV also asked credit institutions to take the initiative in monitoring and exposing interest rate violations in foreign currency lending, mobilising and liquidating activities within their branch offices, and to implement the appropriate disciplinary actions.

On the other hand, the Governor requested that banks and other credit institutions conduct promotional programmes to encourage borrowing, while tending to customer services, especially businesses, to ensure productivity.

Previously, the SBV had issued Circular 06/2014/TT-NHNN and Decision 2589/QD-NHNN, requiring credit institutions to apply regulated interest rates, avoid using technical methods to bypass the SBV’s control, or participating in illicit competition by raising interest rates above the SBV’s designated maximum rates.

At the moment, the SBV’s regulated maximum deposit interest rate for US dollar is zero per cent for both individuals and organisations.

According to reports from the National Financial Supervisory Commission (NFSC), by the end of August 2017, total credit growth rate in the banking sector has reached 11.5 from the start of the year, as compared to 10.2 per cent in the same period of 2016. 

Credit growth rate for lending in foreign currencies in the first eight months of 2017 is now 11.5 per cent, a staggering increase of 6.7 times from the same period last year at 1.7 per cent, while credit growth rate for loans in Vietnamese dong is 11 per cent.

Nonetheless, foreign currency credit only accounts for 8.5 of total national outstanding debt. 

Vietravel to conduct charter flights to Fukushima

One of the leading Vietnamese tour operators, Vietravel, has officially launched a plan to conduct charter flights from Vietnam to Fukushima in Japan from next year.

It will cooperate with low-cost carrier Vietjet Air to fly 15 direct charter flights starting next spring.

Fukushima is the capital of Fukushima Prefecture. Located along the foothills of the Azuma mountain range about 40 km inland from the Pacific Ocean, Fukushima is not a major tourist destination but offers a variety of natural and seasonal attractions, including hot springs, hiking trails in spectacular volcanic landscapes, and Hanamiyama, one of Japan’s most pleasant cherry blossom spots.

Some 3,000 Vietnamese are expected to visit between February and April, the cherry blossom season and also the Tet (lunar new year) holiday in Vietnam, when many people travel abroad. 

Vietravel will charge US$1,188 per person, a saving of about 30%, for tours that take in Fukushima, Ibaraki, Mito, Mt. Fuji, and Tokyo over five days.

Vietravel took nearly 700 visitors to Fukushima on pilot charter flights last year and so far this year. With 15 flights between February and April 2018, it will take about 3,000 visitors, a record for charter flights to Fukushima.

Vietravel has been introducing several charter flights in recent years, to Phuket in Thailand, Sanya in China, Jeju in the Republic of Korea, and Fukushima. It said the tours are warmly received by travelers for their cheaper cost, good services, and the punctual departures.

Charter flights is a term for tours with a leased aircraft and its crew. There are many advantages in using this type of flight, such as time and cost savings, and more and more travel companies are offering such flights.

According to the Japan National Tourism Organization, 233,000 Vietnamese visited Japan in 2016, a 26% increase against 2015 and four-fold the number in 2012. 

As at July, 181,900 Vietnamese had traveled to Japan, up 28.6 per cent year-on-year. Some 6.5 million Vietnamese traveled abroad last year, a 15% increase against 2015. 

China, Singapore, and Thailand were among the most popular destinations, with Japan, the Republic of Korea and Taiwan considered emerging destinations.

State treasury mobilises VNĐ200 billion through government bonds

The State Treasury of Việt Nam mobilised VNĐ200 billion (US$8.77 million) through Government bond auctions last week, the Hà Nội Stock Exchange (HNX) said.

According to the HNX, a winning volume was more than two weeks ago, but it was still very low, accounting for only 10 per cent of the offered bonds, Thời báo tài chính newspaper reported.

Last week, bonds valued at a total of VNĐ2 trillion were offered for four tenures - five years, seven years, 10 years and 15 years. Ten-year bonds attracted five bidders with eligible bid volume at VNĐ1.051 trillion and an annual interest rate of between 5.38 and 6.3 per cent. Thus, the State Treasury mobilised VNĐ200 billion from issuing 10-year bonds with annual interest rate of 5.38 per cent.

However, the five-year, seven-year and 15-year bonds did not see a winning volume.

Since early this year to date, the State Treasury has mobilised VNĐ144.093 trillion through Government bonds issued on the HNX.

New P&G initiatives help SMEs and startups access global business opportunities

Procter & Gamble has hosted P&G Leadership College and introduced the Signal Accelerator for SMEs, reaffirming the company’s commitment to work with the Ministry of Planning and Investment to enhance SMEs’ competitiveness, increase innovative capabilities and approach new business opportunities.

In parallel with the SME Ministerial Meeting of APEC 2017, P&G Leadership College for SMEs took place, attracting more than 100 leading SMEs from across Northern Vietnam. It focuses on improving leadership skills for SMEs in Vietnam.

The workshop highlighted one of the top priorities of the Vietnamese government from now until 2020, which is to position SMEs as the engine of economic growth. This is one of the key mutual goals discussed among ministers responsible for the SME sector in the APEC. Improving the capabilities of Vietnamese enterprises will bolster Vietnam’s ties with other APEC economies.

P&G Leadership College for SMEs in the ASEAN was first launched in Singapore in 2014, aiming to boost cooperation for mutual benefits among large multinationals and SMEs in the region via transferring knowledge and experiences as well as enhancing management competency and competitiveness, and promoting innovation initiatives.

Today’s seminar enabled more than 100 SMEs in Vietnam to access useful knowledge and relevant skills in business innovation shared by Satyajit Sengupta from Singapore-based P&G Innovation Center.

At the workshop, P&G also introduced P&G Signal Accelerator to Vietnam. A global programme working as part of P&G’s innovation strategy, P&G Signal Accelerator seeks out breakthrough innovations and business solutions to address P&G’s business challenges and opportunities.

By launching Signal Accelerator in Vietnam, P&G invites Vietnamese SMEs and startups to a global innovation playground where they can submit their ideas and solutions that can facilitate P&G to resolve challenges and seize business opportunities, by for instance improving the product quality and consumer experience.

Nguyen Hoa Cuong, deputy head of MPI’s Enterprise Development Agency, said, “P&G is one of thefew multinational enterprises providing Vietnamese SMEs with realistic support thanks to their rich experience and knowledge. Through P&G’s help, SMEs’ competitive capacity has seen significant enhancement. I hope that P&G will become a pioneer in holding such events, so that SMEs in Vietnam will be provided with timely support.”

With the local launch of Signal Accelerator, Vietnamese SMEs and startups can now compete with their peers around the globe through innovative ideas and embrace the opportunity of becoming P&G’s innovation partners and gaining access to pilot funding by P&G. This way, P&G’s Signal Accelerator can paves the way for any Vietnamese startup that has the curiosity to learn, the mastery to create, and the passion to win, to join the global players in game-changing innovation.

“Vietnam is one of P&G’s important markets. We are proud to continue our unwavering commitment to support and grow with local enterprises in a sustainable way. Vietnam is among the first nations in Asia where P&G introduces both P&G SME Leadership College and Signal Accelerator. We hope that these two programmes not only help to build capabilities for SMEs in Vietnam, but also connect them with great business opportunities that will help position Vietnam on the global innovation map,” said Omar Channawi, vice president of P&G Asia-Pacific.

P&G has been operating in Vietnam for over 20 years and was one of the first US firms to make an investment after the two countries announced the normalisation of diplomatic relations.

Since then, P&G has invested in three production plants in Vietnam, notably the world-class Gillette plant in the southern province of Binh Duong, one of three Gillette factories in Asia with the most advanced technology run by Vietnamese technicians and engineers who were professionally trained in Europe and America.

P&G’s commitment to Vietnam’s development also extends to investments in nurturing the local talent pool. Specifically, P&G has run long-term programmes in partnership with Vietnam’s top universities, including P&G Leadership Talks, P&G CEO Challenge, and P&G Dream Internship.

Vietnam-Australia trade rises 4.7 percent each year: MoIT

Six years after implementing the ASEAN-Australia-New Zealand Free Trade Area, trade between Vietnam and Australia has increased 4.7% each year on average, according to the Ministry of Industry and Trade (MoIT).

Last year, trade between the two countries reached US$5.26 billion, up 6.5% from 2015, with Vietnam’s trade surplus sitting at US$480 million.

During a conference held by the Department of Asian Market on August 31, the MoIT said that Australia has high demand for goods from Asia-Pacific and has become an important market for Vietnam.

Popular Vietnamese exports to Australia include aquatic products, consumer goods, apparel, footwear and wooden products due to preferential tax deals in the ASEAN-Australia-New Zealand Free Trade Area, added the ministry.

Vietnam spends billions of USD on pharmaceutical products import

Vietnam has spent billions of US dollars on the import of pharmaceutical products every year, according to the statistics from the General Department of Vietnam Customs.

By August 15, imports of pharmaceutical products have hit US$1.712 billion, up 5.8% against the same period last year. Most of the products were imported from France, India, the Republic of Korea, Italy, the UK, Belgium, Germany and the US.

By the end of July, the import value from five markets reached US$100 million and more. Germany came first with US$187.7 million, trailed by France with US$180 million, India with US$164.4 million, the ROK with US$111 million and Italy with US$102.5 million. The import value from these markets made up 46.6% of the country’s total import value.

Imports of pharmaceutical products increased from US$2.035 million in 2014 to US$2.32 billion in 2015 and US$2.563 billion in 2016.

France was the biggest supplier last year with US$321.7 million, followed by India with US$276 million and Germany with US$225.5 million.

Vietnam also imported pharmaceutical products from the ROK, Germany, UK, US and Switzerland.

Rice exports on sharp rise

Rice exports rose high by 19.8% in volume to 3.96 million tons and 17.5% in value to US$1.75 billion in the first eight months of this year against the same period last year, according to the Ministry of Agriculture and Rural Development.

Vietnam has set a rice export target of around 5.7 million tons. To meet the target, the country will have to export 1.74 million tons of rice in the four remaining months.

In August, the price of normal rice inched up while that of the high-quality rice fell slightly. The price increase can be attributed to the fact that winners of contracts to export rice to the Philippines accelerated purchasing.

China remained the biggest importer of Vietnam rice in the first seven months of this year with 1.38 million tons valued at US$623 million, accounting for 40.9% of market shares.

Early this year, rice exports showed positive signs thanks to export contracts with the Philippines, China and Africa.

The Industrial and Trade Information Centre under the Ministry of Industry and Trade forecast that annual rice exports in the 2017-2020 period is expected to reach 4.5-5 million tons with a value of US$2.2-2.4 billion.

According to the rice export market development strategy in the 2017-2020 period with a vision to 2030 approved by the Prime Minister, the rice sector will diversify its export markets to reduce dependency on certain markets, take full advantages of free trade agreements and improve the value, brand and reputation of Vietnamese rice on the global market.

State budget collection reaches more than VND623 trillion

The total State budget collection hit more than VND623.2 trillion (US$27 billion) during the eight-month period, up by 10.8% annually, according to the General Department of Taxation.

Of the figure, VND30 trillion came from crude oil thanks to its higher prices, equivalent to 78.3% of the estimate and posting an 11.3% annual increase. The domestic revenue was estimated to increase 10.8% year-on-year to VND593.3 trillion.

The central budget collection hit VND 275.7 trillion during the period, or 56.7% of the estimate and up 21.6% annually. 

Up to 28 out of the 63 localities performed well in terms of the progress of the State budget collection while the other 15 localities obtained average level in the collection, the department said.

To fulfill State budget collection for this year, the department will focus on intensifying disciplines in State budget management and improving operational efficiency of tax agencies.

Over 12,400 new firms set up in August

As many as 12,404 new enterprises were set up in August with total capital of 131 trillion VND (5.76 billion USD), up 6.2 percent in volume and 39 percent in value, reported the General Statistics Office (GSO).

In the first eight months of this year, 85,357 firms were established with combined capital of 822 trillion VND (36.16 billion USD), up 16 percent and 44.8 percent over the same period last year, respectively.

Total capital pumped into the economy in the period was 1,930 trillion VND (84.92 billion USD), including 1,108 trillion VND added to nearly 24,700 existing firms.

The GSO revealed that 19,154 enterprises resumed their operation, an increase of 2.4 percent year on year.

Wholesale and retail sector drew the largest new businesses with 30,700 firms, followed by construction sector with 11,000 enterprises and processing-manufacturing sector, 11,000 firms.

In eight months, the northern midland and mountainous regions saw the highest rise in new firms, with 3,700 enterprises, up 31.8 percent, and the Central Highlands region, with 2,200 firms, a rise of 25.4 percent.

The GSO also reported that the number of dissolved enterprises in eight months were 7,754, an increase of 3.7 percent year on year, including 7,146 firms with capital of 10 billion VND, accounting for 92.2 percent.

At the same time, 45,776 firms halted their operation, a rise of 13.3 percent, including 28,545 enterprises waiting for dissolving.

Vietnamese company installs equipment in Brunei

Lilama 69-2 Company, a subsidiary of the Lilama Corporation, has completed the installation of its equipment at an Air Liquide plant in Kuala Belait, Brunei.

This is the first equipment installation project of Lilama 69-2 overseas.

To date, all equipment of the production line has been installed at the plant. A system comprising of five storage tanks for liquid Argon (LAR) and two tanks for liquid Nitrogen (LIN) has been completed. Meanwhile, pipeline and measurement system installation is underway.

Lilama 69-2 is scheduled to finish the whole project in October for the operation of the plant.

Air Liquide is one of the traditional partners of Lilama 69-2. The two sides have signed many contracts related to production line installation of the Brunei company’s plants in Vietnam.

After the completion of this project, Lilama 69-2 will continue its work in other plants of Air Liquide in Brunei and Singapore.

Bargasse-based electricity a possibility

The Vietnam Sugarcane and Sugar Association (VSSA) hopes to set up power plants that run on sugarcane by-products.

VSSA Chairman Pham Quoc Doanh said at the fifth annual International Sugarcane Conference recently held in the central province of Binh Thuan, that Vietnam's 41 sugar factories annually produced up to 4.5 million tonnes of bagasses, the fibrous remains after the juice is extracted from the cane. He said this could generate up to 1.4 billion kilowatts of electricity per year.

By 2020, the country will produce about 20 million tonnes of sugarcane which can turn out 2,400 megawatts of electricity.

Doanh said that if Vietnam could manage to process these sugar by-products, they should eventually produce 10 percent of the national electricity turnover. Countries within the Asia Pacific region, such as Brazil, Thailand or the Philippines, have successfully used bagasse to generate electricity. 

Electricity generated by bagasse is a clean alternative source which lessens dependence on thermal power or fossil fuels and help reduce hydro power plant production during the dry season.

Pham Hong Duong, Chairman of TTC Bien Hoa Sugar Corporation, told the conference that the price difference between bagasse-based electricity in Vietnam and Thailand and the Philippines was the main reason why not many power plants have invested in this form of energy.

According to Duong, the current price for each kilowatt of electricity generated by bagasse in Vietnam is roughly 0.05 USD, while the same amount costs 0.11 USD in Thailand and 0.13 USD in the Philippines.

The conference, held in Phan Thiet city, was co-organised by the VSSA and TTC Group.

Dong Nai records 1.4 billion USD trade surplus in eight months

The southern province of Dong Nai enjoyed a trade surplus of nearly 1.4 billion USD in the first eight months of the year, according to the provincial Statistics Office.

In the eight-month period, the province shipped nearly 11 billion USD worth of products to foreign countries, a year-on-year increase of 11 percent.

The trade surplus was contributed by key staples like footwear (1.9 billion USD, up 9.4 percent), garments (over 1 billion USD, up 8.2 percent) and wooden furniture (722 million USD, up 12.3 percent).

The provincial People’s Committee said that the footwear sector has witnessed the highest export turnover in the past years. Foreign direct investment (FDI) companies like Changsin, Taekwang Vina and Pouchen have enjoyed sound and stable growth. They are committing to raising production capacity to meet orders from the world’s big footwear brands in the coming time.

Despite facing fierce competition with Chinese, Indian and Bangladeshi enterprises, Vietnamese garment businesses still ensure stable orders thanks to their prestige and product quality.

Regarding wooden products, numerous firms have sought new markets while taking advantage of the free trade agreements signed with the Republic of Korea and Japan to boost their exports.

Meanwhile, several products saw high export growth like fibre (795 million USD, up 25.6 percent), machines and equipment (670 million USD, up 22.9 percent), computers and electronic products (318 million USD, up 22.8 percent).

High export prices of agricultural products also contributed to the province’s export revenue.

The largest importers of Dong Nai goods in the period were the US with revenue of 2.54 billion USD, China with 944 million USD and Japan with 934 million USD.

CII to spend VND3.4 trillion on infrastructure projects

HCMC Infrastructure Investment JSC (CII) plans to spend VND3.4 trillion on infrastructure and real estate projects in the next three years.

Between 2018 and 2020, CII will pour VND3.4 trillion into some of its key projects, including VND1.64 trillion for infrastructure projects and VND1.76 trillion for the property segment, the company said in a statement sent to investors on August 29.

The company will invest VND300 billion in the second stage of the Binh Trieu road and bridge project and VND520 billion to expand Hanoi Highway. In addition, CII will purchase shares at potential projects and companies where it has yet to become a major investor.

According to CII, mergers and acquisitions (M&A) projects will help it secure long-term growth and raise holdings at large projects such as the Trung Luong-My Thuan Expressway. CII will focus on the Mekong Delta and HCMC, where it has developed a solid portfolio of build-operate-transfer (BOT) projects.

For the property sector, CII will invest VND950 billion in Thu Thiem Riverpark high-class condo project in cooperation with Hong Kong Land. Besides, it will develop a high-rise building project with a total cost of VND310 billion.

At the Thu Thiem area in HCMC’s District 2, CII will develop a lake project and get more land there in exchange.

Meanwhile, CII will focus on its existing water supply projects, especially the key ones such as Tan Hiep 2 and Cu Chi. In the next three years, however, the firm will not invest in new water supply projects or conduct M&A deals with water supply companies.

To mobilize capital for the scheme, CII will issue additional shares for existing shareholders at a 2-for-1 ratio within this year. It expects to sell the shares at VND15,000 each, raising VND1.85 trillion.

Besides, CII will use its own equity and take out loans worth VND1.55 trillion. It targets to obtain nearly VND1.5 trillion in revenue next year and VND2 trillion in 2020 while its profit growth is estimated at 18% a year during the period.

Regarding risks at BOT projects, CII general director Le Quoc Binh said the firm has stopped seeking investment opportunities at small BOT projects since 2015. It is difficult to find out a profitable BOT project due to sensitive issues at present.

CII will concentrate on large BOT projects with investment capital from VND10 trillion as their scale and procedures are different from small ones, he said.

Price of material shrimp increases in August

Price of material shrimp, especially tiger prawn, was on the rise in August, said the Ministry of Agriculture and Rural Development. 

The surge is attributed to increasing demand of aquatic product processing plants due to a shortage of material shrimp.

In Bac Lieu, for example, the price of tiger prawn rose 20,000 VND against last month to 215,000 VND while that of white leg shrimp slightly climbed 1,000-3,000 VND to 130,000 VND per kilo.

Raining in August made a huge change in pond temperature, resulting in a drop in salinity level. Sudden change of weather also weakened shrimp’s resistance and growth. 

However, local authorities have increased monitoring of breeding facilities and warning of diseases on aquatic products, ensuring stable growth of brackish water shrimp. 

Breeding areas for brackish water shrimp nationwide reached more than 679,000ha in eight months, a rise of 4.2 percent year-on-year. Meanwhile, white-leg shrimp farms covered 63,000ha and that of tiger prawn was 580,900ha.

Engineer recalls bitter story of pioneering Vietnamese carmaker

As hope that Vietnam would finally produce cars domestically was renewed after construction of a new car factory began last week, one of the first local engineers who attempted to realize the dream has recalled how he failed as a pioneer.

engineer recalls bitter story of pioneering vietnamese carmaker hinh 0 Now past his 70s, Bui Ngoc Huyen currently lives in his shutdown car factory in Me Linh, outside Hanoi.

Huyen is the founder of Xuan Kien Auto, a company set up with the ambitious goal of producing locally made cars affordable for the Vietnamese.

Xuan Kien began its operation by manufacturing trucks branded Vinaxuki at two factories, one in Me Linh and the other in the north-central province of Thanh Hoa.

During its heyday between 2009 and 2011, Vinaxuki trucks were ubiquitous across the country.

“There were times when dealers had to rent rooms near my factory, waiting to take the trucks as soon as they left the factory,” Huyen recalled the good old days.

“We delivered 50 to 60 units per day at that time.”

Encouraged by his success in the truck market, Huyen moved on to proving whether he could make Vinaxuki cars that cost only VND100 million (US$4,400) for local consumers.

The engineer and entrepreneur turned to Japanese experts to help with design and training tasks, and earmarked a VND250 billion (US$11 million) investment for the carmaking master plan.

However, in 2012, the economy faltered, with bank loan interest rates skyrocketing to nearly 20% a year.

Banks stopped lending money to Vinaxuki at affordable interest rates, forcing Huyen to sell off his own house and that of his son to repay his debts.

The challenges were so big that Huyen eventually had to shut down both of his Me Linh and Thanh Hoa factories, and made use of the abandoned land plots to grow vegetables.

But the made-in-Vietnam car pioneer has never given up.

Late last year, Huyen submitted a 20-page petition to the government, seeking to have his debts extended so he could start restructuring the business.

The government accepted the petition and tasked the investment ministry with studying if it could help the man who dreams big.

Huyen confirmed that he had never given up on the aspiration to improve Vietnam’s carmaking industry.

“I will continue writing petitions to the government and the prime minister,” he said.

Huyen said he can have his two factories resume operations as soon as his debts are allowed to be restructured.

Acknowledging that finance is one of the reasons behind his failure, Huyen said Vingroup, the developer of the headline-grabbing Vinfast car factory in the northern city of Hai Phong last week, does not face this challenge.

As Vietnam’s leading property conglomerate, Vingroup has strong financial muscle, plus a committed US$800 million in credit from the Swiss Credit Suisse Group, which Huyen said are all big advantages for Vinfast.

“Their deep pockets will allow Vinfast to acquire technology and invite experts to help them realize their dreams, and eventually they will be able to make cars,” Huyen said.

Dong Nai firms seeks potential partners in Japan

Enterprises from the southern province of Dong Nai and Japan were given a chance to meet and seek cooperation opportunities at a conference in Tokyo on September 7. 

The event was jointly held by the Vietnamese Embassy in Japan and Dong Nai province People’s Committee with the aim of promoting export-import activities between the two countries. 

Speaking before representatives from 20 Vietnamese firms and over 50 Japanese enterprises, Vice Chairman of the provincial People’s Committee Tran Van Vinh highlighted the province’s advantages in terms of natural, economic and social conditions. 

He stressed that Dong Nai, with stable and high economic growth at an average 13 percent per year, is one of the leading industrial localities in Vietnam.  

According to Vinh, the province accounted for 9-10 percent of the nation’s export revenues with key staples like garments, footwear, coffee, rubber, cashew and pepper.

Japan is the second largest trade partner of Dong Nai, importing 1.58 billion USD worth of products from the province in 2016 while the province splashed out 1.3 billion USD buying Japanese goods the same year.

The official stressed that there is large room for Dong Nai to enhance trade relations with Japanese businesses, and the province commits to creating favourable conditions for enterprises for mutual benefits.

Minister Counsellor of the Vietnamese Embassy in Japan Nguyen Truong Son affirmed that Vietnam and Japan are enjoying sound relations, facilitating bilateral trade relations.

Meanwhile, Dong Nai is in the development triangle of Ho Chi Minh City-Binh Duong-Dong Nai, which is Vietnam’s most dynamic economic region. Thanks to efforts to renovate administrative procedures and good business climate, Dong Nai has been a bright spot in foreign investment attraction. Many Japanese enterprises have made success doing business in Dong Nai, he added.

Ta Duc Minh, Trade counseller of Vietnam in Japan, said that bilateral trade relations have been promoted in the past years and Japan has become Vietnam’s fourth largest trade partner. The conference will strengthen trade between the two countries in general and Dong Nai and Japan in particular.

Vietnam seeks ways to engage more deeply in global value chains

Vietnam has successfully integrated in several global value chains and can increase its added value by policy reforms and initiatives in the fields of transport, services, border procedures and regional integration, said Ousmane Dione, World Bank (WB) Country Director for Vietnam.

He made the statement at a workshop held by the WB in Hanoi on September 7 to release two reports, titled “Vietnam at a crossroads: Engaging in the next generation of global value chains” and “Enhancing enterprise competitiveness and SME linkages.”

Deputy Minister of Industry and Trade Do Thang Hai said that the two reports provide Vietnam with measures to participate in the new generation of global value chains as well as tightening linkages between domestic and foreign enterprises.

The “Vietnam at a crossroads: Engaging in the next generation of global value chains” report shows that Vietnam can continue its growth as an export platform with the focus on outsourcing and assembling, and take advantage of the  current  wave  of  growth  to  climb  the  value  chain  into higher value-added functions.

The report recommends Vietnam improve coordination between ministries and sectors, create favourable conditions for domestic and foreign business to exchange information, and support domestic suppliers.

If achieving a higher position in global value chains, Vietnam can attract more big foreign investors, thus helping generate more jobs and open up more opportunities for domestic suppliers.

To that end, the country has to have a comprehensive reform initiative pack, including narrowing infrastructure-related gap, developing competitive service markets and liberalise regulations on foreign direct investment, streamline border procedures, and boosting cooperation with developed countries.

Meanwhile, according to the “Enhancing enterprise competitiveness and SME linkages” report, Vietnam should support the development of enterprises which have potential in “invented-in-Vietnam” products.

On this occasion, Ousmane Dione chaired a talk on Vietnam’s main issues in engaging in the next generation of global value chains and linking with foreign-invested businesses.

Long An promotes hi-tech agricultural farming

The southern province of Long An has adopted high-tech agricultural methods to improve the quality of its farm produce such as rice, vegetables and dragon fruits to improve farmers’ incomes and raise their living standards.

According to its Department of Agriculture and Rural Development, since the fourth quarter of last year farmers have been struggling to lift their incomes due to high production costs and post-harvest losses due to lack of advanced technologies.

The shortage of capable managerial staff is blamed for the inability to adopt and apply technologies.

Long An authorities have launched a programme titled “Developing the province’s agriculture using technology along with restructuring of the farming sector in the period 2017 –20”.

The project aims to develop a model using hi-technology that will achieve large-scale production of items that are competitive and environmentally safe, can cope with climate change, and meet the country’s industrialisation and modernisation needs.

Lê Văn Hoàng, director of the department, said the programme focuses on paddy, vegetables and dragon fruit and cattle for meat.

There will be 20,000ha under rice in Đồng Tháp Mười, Tân Thạnh, Mộc Hoá, Vĩnh Hưng, and Tân Hưng districts and Kiến Tường town; 2,000ha under dragon fruit in Châu Thành District, 2,000ha of vegetables in the districts of Cần Đước, Cần Giuộc, and Đức Hoà and Tân An town and an area for raising cattle in Đức Hoà and Đức Huệ districts.

According to statistics from the province People’s Committee, now 1,500ha of rice is grown using hi-tech methods and more than 86ha of safe vegetables are grown in the districts of Cần Đước, Cần Giuộc and Đức Hoà.

Hoàng said the use of technology is a must for developing modern agriculture.

Farmers have begun to apply technology in the cultivation of rice, vegetables and dragon fruit though the cattle breeding plan in Đức Hoà and Đức Huệ has got off to a slow start.

Farmers have to invest a lot of money and time to acquire technology while output is meagre, making them worry about profitability.

To ensure the programme is successful, relevant authorities must ensure participants benefit, Hoàng pointed out.

Special incentives in pipeline for agricultural investors

In a move to attract more private investment to the agriculture sector, Vietnam is mulling over offering a series of special incentives in terms of land-use fees and favourable loans for such projects.

The Ministry of Agriculture and Rural Development (MARD) has held a seminar to collect comments for the latest version of a draft decree on incentives for the farming sector, which will replace Decree No.210/2013/ND-CP.

"Decree 210 has proved problematic. There remain many problems in the agriculture sector due to reliance on small and retail households, thus having low productivity, market access difficulties, and low added value," admitted Nguyen Xuan Cuong, Minister of Agriculture and Rural Development.

“The two key tasks will focus on agriculture restructuring towards increasing added value chains and dealing with the weaknesses of the sector, mainly processing and market access. We will also promote sci-tech applications amid the increasing global integration," he added.

Under this draft decree, a firm that has a project with special investment incentives will be exempt from land-use fees, while those having a project with investment incentives will enjoy a 70 per cent reduction in land-use fees.

This draft also includes financial support for agricultural businesses. Accordingly, a firm investing in an agriculture project with special investment incentives and investment incentives, and accepting land-use rights of households and individuals as capital contribution to develop a material area will get a financial support of VND50 million ($2,270) per hectare to develop infrastructure for the area.

In terms of credit policies, a business investing in an agriculture and rural development project will get local support for the interest rate for their commercial loans, once the project is completed.

Specifically, local support for interest rate payments will have a maximum term of eight years for agriculture projects with special investment incentives and six years for projects with investment incentives.

The borrowing cap with interest rate support is not higher than 70 per cent of the project's total investment.

This draft also includes big support for startups in the sector. Accordingly, they will be exempted from water surface and land rental fees from the moment their projects are put into operation. Startups will also be exempt from import duty for machinery and equipment for their project.

There are also many other special financial supports for research, transfer, and application of high-technology in agriculture, for human resources training and market development, for investments in dairy cow and high-yielding cow projects, for investments in slaughter houses, for grown-forest processing projects, for investment in agro-forestry-fishery processing and preservation facilities, and for investments in agriculture and rural development infrastructure.

Both local and foreign firms can benefit from the special incentives, according to the draft.

MARD expects to submit the draft decree to the government for approval in September, contributing to making the sector more attractive to private investors.

According to the ministry, the number of businesses investing in agriculture remains modest. As of September 2016, the country had 4,424 businesses in the sector, making up less than 1 per cent of the country's total.

Youngone Corporation mulls investment in Soc Trang Province

Representatives of Youngone Corporation, an ROK-based company principally engaged in the manufacture and distribution of outdoor sportswear and shoes, met with leaders of Soc Trang Province today, September 6.

The Company primarily operates its business through export of outdoor sportswear, shoes and backpacks to its buyers, which are manufactured by original equipment manufacturers (OEMs) in Bangladesh, China and Vietnam.

The purpose of the meeting was to discuss potential investment in a manufacturing facility in Soc Trang Province that if approved would create more than 10,000 good paying jobs.

Regina Miracle project increases capital to US$500 million

The Regina Miracle International Vietnam Project has increased its investment capital to US$500 million from US$350 million.

The project, invested by Regina Miracle International of Hong Kong (China), received investment certification in 2014 with total registered capital of US$150 million at the Vietnam-Singapore Industrial Park based in the northern port city of Hai Phong.

It aims to produce 70 million bras, 15 million panties, three million pairs of shoes, and 15 million sports clothing.

DHI to establish subsidiary in Vietnam

South Korea’s leading distributor, DHI, has decided to set up a subsidiary in Vietnam, Vietmate, after a year of exploring and evaluating Zalo’s potential in e-commerce, with the goal of using the Zalo platform to distribute quality South Korean products in the Vietnamese market.

In addition to representatives from DHI and the Zalo Corporation, the signing ceremony for the new subsidiary was also attended by representatives from the South Korean Consulate, the Korea Trade-Investment Promotion Agency (KOTRA), and South Korean provinces’ chambers of commerce seeking investment opportunities in Vietnam.

Vietnam has been an attractive destination for Japanese and South Korean investors in recent years, especially in trade and technology. The cultural similarities between the countries are important in promoting economic cooperation.

South Korean companies highly value Zalo’s development and see enormous growth potential on the platform. Mr. Shin Deok-Hwa, CEO of Vietmate, believes that Zalo is like Kakao Talk in South Korea, which is a particularly successful commercial platform in the country.

Assessing the cooperation between DHI and Zalo, the Consul General of the Republic of Korea, Mr. Moon Byung Chul, said: “This is not just a cooperative arrangement between two normal businesses, it is also representative of the mutual development cooperation between Vietnam and South Korea.”

According to the South Korean Consulate, there are more than 50,000 South Korean companies operating in Vietnam and more than 140,000 South Koreans working and living in the country, and this cooperative arrangement with Zalo is expected to help South Korean people access and purchase products in their hometowns more easily.

Under the agreement, Vietmate will initially focus on distributing and promoting cosmetics and beauty products at Zalo shop. This will help Vietnamese people in general and South Koreans in Vietnam in particular to gain access to high quality products instead of unsafe cosmetic options.

Zalo, owned by VNG, had 80 million users as at August and 120 million daily messages exchanged via its system. It ranks first in use, with 80 per cent of users having the app on their smartphone, followed by Facebook Messenger with 73 per cent, Viber 40 per cent, Skype 37 per cent, and Line 18 per cent, according to a report from Appota on Vietnam’s mobile market released in May.