Korean group proposes BOT road project in Can Tho city

YK Group of the Republic of Korea (RoK) suggested a transport project under the build-operate-transfer (BOT) format in the Mekong Delta city of Can Tho during a working session with municipal authorities on October 31.

YK Chairman Jang Sang Kyu said his group is interested in some projects in Can Tho, including the construction of a road linking National Highway 91 with Nam Song Hau road.

Proposing two plans for this project, he said under the BOT format, the construction could be funded with the RoK’s capital and toll collection will last for 30 years. In the second plan, Can Tho will be the investor and cover 20-30% of the total cost while the remaining capital could be borrowed from the RoK Government.

According to the municipal Department of Transport, the project will have total length of about 30km, including nine intersections and 25 bridges. Total cost for the construction is estimated at VND15.07 trillion (US$714 million), including VND791 billion (US$38 million) for site clearance.

Chairman of the municipal People’s Committee Vo Thanh Thong said Can Tho is very interested in the YK-suggested project. It has planned to build this road for a long time but lacks funding.

The city wants this project to be carried out under a BOT contract which is more feasible than the implementation funded by the State budget, he noted, suggesting YK Group carry out some cultural or tourism projects to capitalise on this road.

Vietnam Property Awards back for 4th year     

The fourth annual PropertyGuru Vietnam Property Awards was launched in HCM City on November 1.

Applications are now open to nominate the best property developments in Viet Nam, organisers said, adding they welcome entries from HCM City, Ha Noi, Da Nang, Ha Long Bay, Phu Quoc and Nha Trang – making it the biggest real estate awards in the country.

Instituted in 2015, the awards are given away by PropertyGuru Group and Oriental Media Vietnam.

Nominations would be accepted until April 20, 2018, and as usual there is no fee to enter in any category, the organisers said.

For the fourth edition, official charity partner CARE International will present the CARE Special Recognition in Positive Construction Practices award to developers who demonstrate extraordinary commitment to occupational safety and well-being of construction workers, especially women, and provide equal opportunity, training and security.

New categories have been added this year -- Best Resort Architectural Design and Best Resort Interior Design – in acknowledgment of Viet Nam’s growing reputation as a top resort destination.

The judges will also honour public facility and corporate headquarter design to deserving companies and projects around the country.

“With continued strong GDP growth, further infrastructure development, improved connectivity and accessibility, and foreign direct investment figures to real estate market reaching 70 per cent year-on-year, we see a strong future for the Vietnamese real estate industry,” Terry Blackburn, founder and managing director of the PropertyGuru Asia Property Awards, said.

“Ha Noi and HCM City remain the sector’s biggest draws, with their offerings of developments at different price points, from affordable housing to luxury condominiums. It’s also great to see other locations such as Da Nang, Ha Long Bay and Nha Trang taking their place alongside the premier resort destinations of Southeast Asia.”

The nominations will undergo thorough screening and be visited by judges and local inspection teams sent by awards supervisor BDO Vietnam.

The official shortlist will be revealed in the third week of May 2018, and the winners and highly commended companies announced at the fourth annual black-tie gala dinner and awards ceremony in June 2018. 

Tien Sa Port gets $7.9m loan to expand     

The central Da Nang City’s Investment and Development Fund has agreed to provide a US$7.9 million loan to the Da Nang Port joint-stock company to upgrade and expand the Tien Sa Port.

Director of the port, Nguyen Huu Sia, told Viet Nam News that the 13-year loan was to fund the building an international standard logistics centre in Viet Nam.

He said the loan was just 20 per cent of total investment capital ($49.3 million) needed to complete upgrading the port during the next two years.

Sia said the company would also raise funds from its available funds and from shareholders as well as from the Bank for Foreign Trade of Viet Nam (Vietcombank) and the Bank of Investment and Development of Viet Nam (BIDV).

The expanded port has been able to handle 14 million tonnes of cargo, including 800,000 TEUs (20-foot equivalent unit), and become a leading international commercial gateway in the ASEAN region by 2025.

The Tien Sa upgrade is the second investment project in Da Nang not to use Official Development Assistance (ODA) funds after the Hoa Lien Water refused non-refundable ODA funds from Japan.

As planned, the Tien Sa, the largest in central Viet Nam, will be expanded to 86,674sq.m, raising the port’s total area to about 29ha with total investment of $49.3 million.

The port handled 7.25 million tonnes of cargo and 73 cruise ships last year. It is a key logistics port in Viet Nam’s central provinces and the Central Highlands, as well as the East-West Economic Corridor that links Laos, Myanmar, Thailand and Viet Nam.

Currently, Tien Sa Port allows access to only 30,000 DWT (deadweight tonnage) ships, and plans to be able to berth 70,000 DWT ships by 2025.

According to the Ministry of Transport, Da Nang City’s port system, including Tien Sa, Lien Chieu and Son Tra, will handle 29 million tonnes of cargo by 2030. 

Japan boosts promotion of food products in Vietnam

Japan is boosting promotion of its food products in Vietnam, said Takimoto Koji, Chief Representative of the Japan External Trade Organisation (JETRO) at the Japan Fair in HCM City on November 1.

After the Japan Fair was launched by the JETRO in 2016, over 40 percent of the exhibited products have continued to be available for sale in Vietnam, Koji noted.

According to the chief representative, this year’s event, scheduled between November 2017 and January 2018, will promote 76 new made-in-Japan products that will be sold at affordable prices across 260 stores of FamilyMart, Ministop and AEON Mall.

Japanese child books will be introduced for the first time besides the event’s key products like foods. Japanese food products, such as confectionery and ice-cream, have been well-received by Vietnamese young consumers, said Yamanouchi Hirohisa, head of the FamilyMart’s products and marketing department.

Made-in-Japan products accounted for about 10-20 percent of goods sold at Japan’s retail stores in Vietnam. Japanese firms plan to give local consumers more choices with fresh fruits and supplementary foods.

Textile, garment industry expo opens in Hanoi

The 2017 Hanoi Textile and Garment Industry Expo (HANOITEX 2017) opened at the International Centre for Exhibition on Tran Hung Dao street, Hanoi on November 1.

The annual event draws over 150 companies from 15 countries and territories, including China, Germany, India, Indonesia, Italy, the Republic of Korea, Malaysia, Pakistan, Singapore, Turkey, the UK, the US, and Vietnam. 

The three-day event is showcasing textile-garment machinery and equipment, high-quality silk and fabrics, dyeing equipment and chemicals, materials and accessories across an area of 6,000sq.m.

Addressing the opening ceremony, Deputy Minister of Industry and Trade Cao Quoc Hung said the expo provides an opportunity for Vietnamese textile-garment producers to access the latest technologies of the world, thus raising locally made proportion and enhancing the added value of products.

In order to implement its sustainable strategy by 2020, the sector has invested more in high-quality and environmentally friendly technologies, said General Director of the Vietnam National Textile Garment Group (Vinatex) Le Tien Truong.

The event is organised by the CP Exhibition Hong Kong, VCCI Expo, and Vinatex, under the patronage of the Ministry of Industry and Trade and the Vietnam Textile and Apparel Association.

Meanwhile, about 500 firms will join the 17th International Textile and Apparel Accessories Exhibition in HCM city from November 22-25, featuring new solutions, technologies and equipment for the apparel sector.

HCM City looks to expand solar power network

Sun power output in Ho Chi Minh City was estimated  to grow an average of 2.5 times on an annual basis since 2014.

In 2014, the output was recorded at 400 kilowatt peak. In 2016, it increased to 4 megawatt peak in comparison to the national figure of 7 megawatt peak. Official surveys showed that more than 300,000 roofs are suitable to solar battery installation for the generation of more than 6.4 green watt power.

Sun energy in Vietnam is consumed through grid-tied and off-grid systems, with price being at 2,086 VND per kilowatt hour (excluded VAT tax). A household or business using grid-tied solar power can reduce energy costs and even sell excess power back to the utility for money.

The Ho Chi Minh City Power Corporation (EVN HCMC) has installed a 28.52-kilowatt-peak solar battery system on the roof of its headquarters, as a move to promote green energy for tall buildings.

Currently, the EVN HCMC is installing the grid-tied system for 15 other EVN premises with total capacity estimated at 800 kilowatt peak. 

The provincial power sector will establish an energy service company (ESCO) to enable access to grid-tied solar system for the Ton Duc Thang University, Anh Khoa’s Brother company, offices building of the District 12 People’s Committee and the Voice of Ho Chi Minh City radio station.

HCMC temporary halts all BT projects under negotiation

Chairman of the HCMC People’s Committee Nguyen Thanh Phong yesterday required to temporarily halt all BT (Build-Transfer) projects under negotiation until the city builds a closer management process.

 The city will continue carrying out projects which the Prime Minister has instructed to implement.

He asked the Department of Planning and Investment to work with businesses to supply them with clear information about the policy. The slow implementation of BT projects aims at tighter, more suitable and practical management process to ensure investors’ rights in long term.

This week, HCMC will organize a workshop on BT projects management in the city. The workshop will estimate the current management process, propose solutions to ensure that the management will be transparent in line with current regulations and create conditions for businesses to invest in the city.

He asked the Department of Planning and Investment to invite experts to attend the workshop. From expert opinions, the agency should consult the city on building a tight process and submit it to the city People’s Committee to report to the city Party’s Committee.Vietnam needs to have craft product development strategy

Craft villages in Vietnam have been short of workers while their products are not diversified, some have imported Chinese goods to label local brand names for sale. Therefore, the country needs to have a strategy to develop craft products. 

The statement was made by Mr. Nguyen Quoc Toan from Farm Produce Processing and Market Development Department yesterday at a press conference on organizing Vietnam Craft Village Fair 2017 in Hanoi.

At present, the country has nearly 5,000 craft villages including 2,000 traditional ones.

According to Mr. Toan, the strategy should comprise planning, human resource training, technology reform and product design diversification.

Especially, relevant agencies must tightly manage product quality and origin, he stressed.

At the conference, chairman of Vietnam Craft Village Association Luu Duy Dan said that Van Phuc village sells lot of Chinese silk products while Bat Trang village also has lot of China’s Jiangxi potteries and porcelain. Some shops in the two villages even label Chinese products with Van Phuc or Bat Trang brand names for sale.

The situation has not only occurred in the two well-known villages but also many others.

Worse, many craft villages in Vietnam have been withering such as Chuong conical hat making village in Thanh Oai district of Hanoi, Dong Ho painting village in Bac Ninh province and La Khe silk weaving village in Ha Dong, Hanoi.

Mr. Dan said that craft villages have faced many problems from planning to human resource training. The vocational training program for rural residents have not created breakthroughs for the villages to develop.

Mr. Dao Van Ho, director of the Vietnam Trade Promotion Center for Agriculture under the Ministry of Agriculture and Rural Development, said that the Vietnam Craft Village Fair 2017 will be organized in Hanoi from November 9-13.

The fair will include by 250 stalls showcasing products of traditional craft villages including one silk stall. The organization board has not invited establishments from Van Phuc village to participate in the event but an artisan whose products have been well estimated by many people from My Duc district, Hanoi.

The board also required the fair’s attendees to commit to ensuring goods quality and selling the right products of craft villages.

National steering committee on restructuring economy set up

The PM has decided to establish the national steering committee on restructuring the economy and renewing growth model. 

PM Nguyen Xuan Phuc is the head of the steering committee. Deputy PM Vuong Dinh Hue and the Minister of Planning and Investment are the permanent deputy head and deputy head of the committee. 

The committee helps the Government and the PM direct, urge, monitor and coordinate with ministries, ministerial-level agencies and localities to restructure the economy and renew growth model. 

The committee reports to the Government, the PM, the Government and authorized agencies to eliminate and amend legal documents which hinder the restructuring of economic sectors and renewing the growth model. 

It also evaluates and supervises the implementation of action plans of ministries, agencies and localities as well as corporations and companies on the implementation of restructuring the economy and renewing growth model.     

Property startups take lead in capital pledges in Jan-Oct

Real estate startups make up the largest proportion of registered capital, at roughly VND284 trillion, 27.8% of the total, according to the Business Registration Agency under the Ministry of Planning and Investment.

Data of the agency shows the sector of wholesale and retail sales and repairs of motor vehicles and motorcycles has seen more than 37,800 startups, making up 36% of the total. The manufacturing and processing sector has come second with over 13,400 startups (12.8%), followed by the construction industry with over 13,300 (12.7%).

Notably, the number of real estate startups has risen by a staggering 62.5% year-on-year to some 4,000. Though the number of startups in this sector remains modest compared to the above-mentioned sectors, such enterprises have pledged much more capital, around VND283 trillion, representing 27.8% of the total.

Startups in the sector of wholesale and retail sales and repair of motor vehicles and motorcycles have total registered capital of about VND165 trillion (16.2%), followed by those in the construction sector at some VND138 trillion (13.6%), and those in the manufacturing and processing sector at over VND121 trillion (11.9%).

In terms of the average registered capital of new enterprises, the real estate sector comes first, averaging out at about VND70 billion each, followed by the production and distribution of water and gas at around VND66 billion; arts, recreation and entertainment at some VND19 billion; and coal mining at over VND18 billion.

Meanwhile, in 19 sectors with FDI involvement, the real estate sector took the third position with total capital of around US$2.04 billion, 7.2% of the total, behind the manufacturing and processing sector with US$13.75 billion, and the power generation and distribution sector with US$5.6 billion.

The real estate sector has still been appealing to foreign investors, thanks to sustainable economic growth, favorable demographic structure, and increased demand for housing, said international property consultants.

According to insiders, the robust activities of the real estate sector, especially in major cities, have pushed up the number of startups.

Overall, the country has had more than 105,00 new enterprises registered with total capital of more than VND1,020 trillion in the year to October, up 14.6% and 43.8% respectively over the year-ago period.

Besides, operational firms have registered to inject an additional VND1,410 billion into their expansion plans, bringing the total capital newly registered by businesses in the ten-month period to over VND2,400 trillion.

In addition, around 22,700 enterprises have returned to business during the ten months after a period of suspension while roughly 9,800 others have completed procedures for dissolution, and over 52,700 others have suspended their operations.

CAAV hires French consultant for TSN airport expansion

The Civil Aviation Authority of Vietnam (CAAV) has hired ADPi Engineering, a French company specializing in airport architecture and engineering, to review the project of expanding Tan Son Nhat International Airport and suggest feasible options.

ADPi is expected to finish its study in late December. The Ministry of Transport will then submit feasible options to the Prime Minister for consideration and approval, according to Thanh Nien newspaper.

Founded in 2000, ADPi is a fully owned subsidiary of Aéroports de Paris Group (ADP). The company has designed and managed passenger terminals, air control towers, aircraft hangars, and maintenance centers of major airports in Beijing, Shanghai, Seoul and other cities.

To address the rising overload of the country’s busiest airport, the Ministry of Transport earlier submitted the plan to expand Tan Son Nhat to the Prime Minister. Accordingly, Terminal T4 and more taxiways will be built within two or three years on the airport’s existing land.

To ensure feasibility, the Prime Minister has asked the ministry to assign competent agencies to hire foreign consulting firms to assess the plan and suggest more options, with an aim to raise the airport’s capacity to 45-50 million passengers a year.

Phu Quoc busy with international flights

International airlines have launched many flights to Phu Quoc Island off the Mekong Delta province of Kien Giang, said a source from Phu Quoc International Airport.

Thailand’s Bangkok Airways on Sunday launched its first direct service between Thai capital Bangkok and Phu Quoc of Vietnam. Bangkok Airways will operate four weekly flights on Tuesday, Thursday, Saturday and Sunday using ATR72-600 aircraft. The flying time is one hour and 45 minutes.

Bangkok Airways earlier opened an air route to Danang City of Vietnam.

In addition, Russia’s Royal Flight on October 25 launched air service from Russia’s cities of Tolmachevo, Moscow and Koltsovo to the beautiful island. The airline’s first flight took 325 Russians to Phu Quoc.

Royal Flight operated return flights on October 24, 25 and 30 using B767-300 aircraft. In November, the carrier will introduce five chartered flights to the island.

The UK’s TUI Airways also has plans to run chartered flights from the UK to Phu Quoc tomorrow while Italian airline Neos will operate scheduled flights from Milan to Phu Quoc on Tuesdays and Wednesdays from December 19 to April.

According to statistics of Phu Quoc International Airport, about 2.8 million visitors have come to the island so far this year, generating tourism revenue of nearly VND2.9 trillion (US$127.7 million). Each day, there are 40 flights carrying a combined 3,000 visitors to the airport.

HCMC exports near US$30 billion in Jan-Oct

HCMC’s exports so far this year have increased 13.3% year-on-year to US$29.15 billion, helped by strong exports to Asian countries, said HCMC Department of Planning and Investment director Su Ngoc Anh at a meeting here on October 30.

Speaking at the review meeting on the city’s socio-economic performance, Anh said the city’s exports to Singapore leaped 86.3%, Myanmar 65.6%, India 35.5%, Malaysia 35%, Thailand 34% and China 22.6%, with key export products including rubber, computers, electronics, vehicles and vehicle parts.

Anh said that apart from robust export growth, the city’s economy has fared well in other sectors like retail, tourism and transport, each having achieved growth of above 10%.

Particularly, the city’s tourism revenue in January-October has reached VND95 trillion (nearly US$4.2 billion), increasing 12% year-on-year and meeting nearly 85% of the full-year plan.

Total retail and service revenue has amounted to more than VND756 trillion, up 12% against the same period last year.

In the year to date, the city has had over 33,800 new enterprises registered with total capital of around VND457 trillion. “Total registered capital of domestic enterprises has increased by more than three times compared to the same period last year,” Anh said.

Fresh foreign direct investment (FDI) approvals in HCMC this year, including from mergers and acquisitions (M&A) deals, have increased by two times year-on-year to more than US$5 billion.

The city expects its regional gross domestic product (RGDP) growth of over 8.4% and looks to have 50,000 newly-established enterprises this year. The total factor productivity (TFP) may contribute 36% to GDP.

HCM City’s credit growth nears 14.6 percent in ten months

The State Bank of Vietnam (SBV)  Ho Chi Minh City reported that credit growth of Ho Chi Minh City estimated to reach  VND 1, 690 trillion in the first ten months of the year, rose 14.59 percent compared to last year, up 19.76 percent compared to the same period of last year.

Loans in Vietnamese dong accounted 90.6 percent, increased 14.65 percent over last year.

Loans in foreign currencies reached VND 158 trillion, accounted for 9.4 percent of total loans and increased up to 14.03 percent in comparison to the same period last year.

Medium and long term credit loans accounted for 53.3 percent of total loans, increased 7.68 percent compared to the same period of last year while the short term credit loans accounted for 46.7 percent, increased 23.65 percent against the end of last year. 

For five priority sectors as agriculture, rural, export, supporting industry, small- medium enterprises and high- technological application enterprises, the short term loans in Vietnamese dong reached VND 152.7 trillion. 

Of the total  capital, more than 50 percent is for small- medium enterprises, estimated at VND 98. 4 billion accounted for nearly 64.4 percent of total loans.

Capital mobilization of credit institutions in the city grew by VND 1.98 million, increased 11.4 percent over the end of last year (lower than credit loan) and increased nearly 14 percent compared to the same period last year. 

This year’s credit growth in Ho Chi Minh is expected  to grow around 20 percent; and credit loan in the final months of the year will reach at VND 80 trillion.

Hanoi’s budget collection valued at US$ 7 billion in first ten months

Hanoi has collected a total of VND 162 trillion (US$7.13 billion) for the state budget since the beginning of this year, an increase of 9.7% over the same period last year.

The figure was announced at a meeting, on October 31, to review the city's socio-economic development over the past month and map out the key tasks to implement the city’s socio-economic development plans for the two remaining months of the year.

According to a report released by Hanoi municipal People’s Committee, in October alone the capital city continued to witness encouraging achievements as the city's index industrial production increased by 7.3% annually, while export turnover was calculated to rise by 1.6% to US$ 1 trillion.

The city received approximately 315,000 international arrivals last month, up 41.1% against 2016, and welcomed more than 20,600 newly-established firms with a total registered capital of VND 164 trillion (US$ 7.2 billion) in the January-October period.

Speaking at the meeting, Hanoi People's Committee Chairman Nguyen Duc Chung called for joint efforts from the departments and sectors in order to fulfil the city’s yearly growth targets during the remaining months of 2017.

He asked the municipal authorities to take drastic measures to accelerate the administrative procedure reform, create favourable condition for businesses, and ensure traffic safety, while maintaining social order for the upcoming New Year festival.

Lotte Accelerator to pour $1mn into Vietnamese startups

Lotte Accelerator has recently announced it will partner with Vietnam Silicon Valley Accelerator (VSVA) with the goal of making Vietnam become a technologically advanced country and a potential market for venture capital. The partnership also marked the establishment of Vietnam’s first venture capital fund dedicated to startups in the early stages, which it hopes will become a powerful catalyst for the venture capital market in the country.

This is also an opportunity for investors to learn about the potential of 12 startups selected by VSVA and Lotte Accelerator after an evaluation process of more than 100 projects.

Vietnam has been an attractive destination for investors for some time, with more than 100,000 enterprises established in 2016 and over $25.48 billion in foreign direct investment (FDI) so far this year.

The Prime Minister has issued Decision No. 844 on approving a scheme for “Support for Innovation and the Startup Ecosystem to 2025”, which aims to build a vibrant entrepreneurial ecosystem and a sustainable venture capital market as a platform to accelerate the application of innovative technology at enterprises.

Determining Vietnam as a market of potential, the Lotte Group, one of South Korea’s five largest groups, entered Vietnam in 1998 with its fast food chain Lotteira. It now has 12 subsidiaries in many fields and deeply understands the importance of startups for a business and the economy as a whole.

Lotte Accelerator was established in 2016 with capital of $15 million and has developed a strategy to support startups in Vietnam with the “Lotte Accelerator Awards 2016”.

It has invested in about 50 startups to date, 60 per cent of which have succeeded in attracting follow-up investment. It recently added venture capital capabilities and plans to raise more than $50 million for investment in small and medium-sized enterprises (SMEs).

VSVA is the first business promotion organization established in Vietnam based on valuable research from the Vietnam Silicon Valley Scheme, the first Vietnamese Government project to directly support startups. During its nearly four years of operations, VSVA has maintained a leading position in providing seed capital and training programs for startups in Vietnam.

Its portfolio includes 50 companies, with a successful investment rate of 38 per cent. Many startups graduating from the program have successfully called for the next round of investment with a multi-million-dollar valuation, such as TechElite, Lozi, SchoolBus, and Ship60.

VSVA and Lotte Accelerator also expect to create a new corridor for domestic and foreign corporations to invest in startups in Vietnam.      

Investment funds shift focus to mid-cap stocks

Investment management funds have been active in trading on the HCM Stock Exchange recently, focusing on mid-cap stocks.

VinaCapital last week purchased over 11.18 million shares of An Duong Thao Dien Joint Stock Company (HAR), an equivalent of 11.06 per cent of total outstanding shares, and became the second largest shareholder of the real estate developer after its chairman Nguyen Gia Bao.

Shares of HAR have increased by nearly four fold this year, soaring from just VND2,660 at the end of last year to VND10,500 (US$0.46) a share yesterday with an average trading volume of nearly 1.4 million shares per session.

Meanwhile, an investor group related to Dragon Capital raised its stakes in Khang Dien Investment & Trading House JSC (KDD) to 17.63 per cent, an equivalent of 57.8 million shares. Both Grinling International Limited and Vietnam Enterprise Investments Limited bought a combined 3.8 million KDH shares last week.

In a related development last week, property fund Vietnam Ventures Ltd picked up 3.8 million KDH shares.

KDH’s share price has expanded 30 per cent this year, being traded at around VND26,000 per share on the HCM Stock Exchange. The foreign holdings in the company have reached the limit of 49 per cent after recent active trades by foreign funds.

Besides KDH, Dragon Capital’s investor group also bought a big stake in Nam Kim Steel JSC (NKG). Amersham Industries Limited purchased 7.5 million NKG shares, lifting its holding here to 6.51 per cent, while Aquila SPC Ltd and Idris Ltd bought 3 million NKG shares. These investment funds hold a combined 22.41 per cent stake in the company.

This is part of total 30 million shares the steelmaker issued to investors in a private placement last week. NKG’s share is being traded around VND35,000 apiece, 30 per cent higher than the selling price of VND27,000 a share in the private placement.

Dragon Capital’s funds offloaded shares of another steelmaker, Hoa Sen Group (HSG). Norges Bank sold 330,000 HSG shares, reducing its ownership to 4.96 per cent and relinquishing its position as a major shareholder of Hoa Sen Group.

In terms of business activities, Hoa Sen Group reported net revenue of VND26.15 trillion and net profit of VND1.33 trillion in the fiscal year 2016-17 (from October 1, 2016 to September 30, 2017), fulfilling 114 per cent and 81 per cent of its yearly goals, respectively.

Another foreign fund from Finland, Pyn Elite Fund (Non-Ucits), has restructured its portfolio last week. It reduced holdings in two construction companies – Kinh Bac City Development Share Holding Corp (KBC) and Hoa Binh Construction Group (HBC).

Pyn Elite Fund sold two million KBC shares, reducing its stake from 5.38 per cent to 4.94 per cent, while it offloaded 854,900 HBC shares, decreasing its ownership from 14.08 per cent to 13.32 per cent.

Meanwhile, Pyn Elite Fund purchased shares of Fecon Corp (FCN), Construction Investment Corporation 3-2 (C32) and Van Phat Hung Corp (VPH). It can be seen that the fund has reduced its investment in large-cap construction companies while shifting focus on to mid-cap firms. They are all mid-sized construction and real estate companies.

In the opposite direction, domestic investment funds such as Binh Dinh Investment and Development Fund sold nearly 10.5 million shares of Binh Dinh Pharmaceutical and Medical Equipment JSC (DBD) after shares gained 49 per cent in value since first trading on the Unlisted Public Company Market (UPCoM) in January this year.     

SCIC reveals initial price for Vinamilk auction

State Capital Investment Corporation (SCIC) has announced the initial price of VND150,000 ($6.62) piece for Vietnam Dairy Product JSC (Vinamilk)’s shares in its second divestment round.

Investors’ registered price for Vinamilk will not be less than SCIC’s offered price as well as Vinamilk’s floor price on the transaction session on November 10, which is the date of the second auction.

Despite the fact that Vinamilk’s first divestment round failed as 40 per cent of the shares were unmarketable, at the second round SCIC set an even higher price.

Vinamilk organised three roadshows at the Ho Chi Minh City Stock Exchange, Singapore, and Hong Kong. Accordingly, at the roadshow organised at HoSE, Mai Kieu Lien introduced Vinamilk to investors, while in Hong Kong and Singapore, SCIC organised non-deal roadshows. 

Previously, in mid December 2016, F&N Beverages Manufacturing Sdn., Bhd. and F&N Dairy Investments Pte., Ltd., the two 100-per-cent-owned subsidiaries of Fraser & Neave Ltd. (F&N), spent VND11.3 trillion ($499.56 million) buying a total of 78.38 million shares, equalling a 5.4 per cent stake in Vinamilk.

The share volume bought was equal to 60 per cent of the shares put on sale.

After the sale, F&N Dairy Investments Pte., Ltd., has made several attempts to buy more of Vinamilk’s stocks, but failed.

At present, the company holds a 16.04 per cent stake, equivalent to 232.7 million shares in Vinamilk and F&N Beverages Manufacturing Sdn. Bhd holds 2.7 per cent. 

Thua Thien-Hue greets over 3.1 million tourists in Jan-Oct

The central province of Thua Thien-Hue welcomed over 3.1 million tourists in the first 10 months of 2017, a year-on-year rise of 16.2 percent.

The number of international visitors to the province increased 35 percent to 1.2 million in the ten-month period.

The tourism sector raked in 2.8 trillion VND (12.3 million USD) in revenues, a year-on-year increase of 10 percent.

Deputy Director of the provincial Department of Tourism Le Huu Minh said Thua Thien-Hue will work to surpass the yearly target of receiving 3.5 million holidaymakers via increasing boat services on the Huong (Perfume) river and opening pedestrian streets while improving quality of products and services.

The province will promote investment in developing various forms of tourism such as spiritual, cultural, resort, medical, heritage and maritime tourism while building hi-end tourism areas at the Chan May – Lang Co bay - one of the world's 10 most beautiful bays voted by the Worldbays Club.

The tourism sector will also seek to attract more vacationers from traditional markets such as the Republic of Korea and Japan.

Hue, which was the imperial capital of Vietnam for hundreds of years, is home to five heritages recognised by UNESCO, which are Hue ancient citadel relic complex - a World Cultural Heritage site; Nha Nhac (Hue royal court music) - an intangible cultural heritage item; Nguyen Dynasty’s wood blocks - a documentary heritage item; Nguyen Dynasty’s Chau ban (royal administrative documents) - part of the Asia-Pacific Register of UNESCO’s Memory of the World Programme; and literature on Hue royal architecture - a documentary heritage.

The Hue imperial citadel relic has been ranked second among top seven tourism attractions of Vietnam in 2017.

KDF reports 7.5 per cent growth in revenue  

Revenue in the first three quarters of the year rose 7.5 per cent year-on-year for Kido Frozen Foods (KDF), a company of the food manufacturer Kido Group.

The company posted revenue of over VNĐ1.2 trillion ($52.6 million), and in the third quarter, the figure was VNĐ447 billion ($19.6 million), a surge of nearly 20 per cent over the same period last year.

KDF attributed the higher revenue to new products and markets.

Frozen foods, including frozen chips and dumplings, newly introduced to the market, also helped the company gain solid growth as the items are sold nationwide.

KDF reported pre-tax profits of VNĐ164 billion ($7.2 billion) in the first nine months of the year.

A representative of the company said that more new products would be marketed in the last quarter of the year, including sausages and canned foods.  

Investment funds shift focus to mid-cap stocks     

Investment management funds have been active in trading on the HCM Stock Exchange recently, focusing on mid-cap stocks.

VinaCapital last week purchased over 11.18 million shares of An Duong Thao Dien Joint Stock Company (HAR), an equivalent of 11.06 per cent of total outstanding shares, and became the second largest shareholder of the real estate developer after its chairman Nguyen Gia Bao.

Shares of HAR have increased by nearly four fold this year, soaring from just VND2,660 at the end of last year to VND10,500 (US$0.46) a share yesterday with an average trading volume of nearly 1.4 million shares per session.

Meanwhile, an investor group related to Dragon Capital raised its stakes in Khang Dien Investment & Trading House JSC (KDD) to 17.63 per cent, an equivalent of 57.8 million shares. Both Grinling International Limited and Vietnam Enterprise Investments Limited bought a combined 3.8 million KDH shares last week.

In a related development last week, property fund Vietnam Ventures Ltd picked up 3.8 million KDH shares.

KDH’s share price has expanded 30 per cent this year, being traded at around VND26,000 per share on the HCM Stock Exchange. The foreign holdings in the company have reached the limit of 49 per cent after recent active trades by foreign funds.

Besides KDH, Dragon Capital’s investor group also bought a big stake in Nam Kim Steel JSC (NKG). Amersham Industries Limited purchased 7.5 million NKG shares, lifting its holding here to 6.51 per cent, while Aquila SPC Ltd and Idris Ltd bought 3 million NKG shares. These investment funds hold a combined 22.41 per cent stake in the company.

This is part of total 30 million shares the steelmaker issued to investors in a private placement last week. NKG’s share is being traded around VND35,000 apiece, 30 per cent higher than the selling price of VND27,000 a share in the private placement.

Dragon Capital’s funds offloaded shares of another steelmaker, Hoa Sen Group (HSG). Norges Bank sold 330,000 HSG shares, reducing its ownership to 4.96 per cent and relinquishing its position as a major shareholder of Hoa Sen Group.

In terms of business activities, Hoa Sen Group reported net revenue of VND26.15 trillion and net profit of VND1.33 trillion in the fiscal year 2016-17 (from October 1, 2016 to September 30, 2017), fulfilling 114 per cent and 81 per cent of its yearly goals, respectively.

Another foreign fund from Finland, Pyn Elite Fund (Non-Ucits), has restructured its portfolio last week. It reduced holdings in two construction companies – Kinh Bac City Development Share Holding Corp (KBC) and Hoa Binh Construction Group (HBC).

Pyn Elite Fund sold two million KBC shares, reducing its stake from 5.38 per cent to 4.94 per cent, while it offloaded 854,900 HBC shares, decreasing its ownership from 14.08 per cent to 13.32 per cent.

Meanwhile, Pyn Elite Fund purchased shares of Fecon Corp (FCN), Construction Investment Corporation 3-2 (C32) and Van Phat Hung Corp (VPH). It can be seen that the fund has reduced its investment in large-cap construction companies while shifting focus on to mid-cap firms. They are all mid-sized construction and real estate companies.

In the opposite direction, domestic investment funds such as Binh Dinh Investment and Development Fund sold nearly 10.5 million shares of Binh Dinh Pharmaceutical and Medical Equipment JSC (DBD) after shares gained 49 per cent in value since first trading on the Unlisted Public Company Market (UPCoM) in January this year. 

Bao Viet earns $1b in revenue in 9mths     

Bao Viet Group (HOSE: BVH) recorded a consolidated revenue of VND23.36 trillion (US$1.02 billion) in the first nine months of this year, a year-on-year surge of 26.8 per cent.

This result helped the group achieve its business target for this whole year and become the first firm in the finance and insurance sector to earn $1 billion in consolidated revenue.

The group achieved a breakthrough in the life and non-life insurance business. Revenue of the life insurance and non-life insurance sectors achieved year-on-year growth of 28.9 per cent and 23.9 per cent, respectively, in the first nine months.

The group’s total assets also increased by 17.5 per cent to VND85.78 trillion in comparison with total assets at the end of 2016.

The Ministry of Finance’s Insurance Management and Supervisory Department reported that Bao Viet’s life insurance was the leader in the domestic life-insurance market with 20.5 per cent of the total new premium revenue of the market. Bao Viet insurance maintained growth rate of 12.4 per cent in premium revenue.

Since equitisation, Bao Viet Group has paid VND18 trillion in taxes. From August 31, 2017, the group has paid dividend at 10 per cent, or VND680.5 billion, 2 per cent higher than the plan approved by the general meeting of shareholders in 2016. 

SMEs seek global trade assistance     

Though Viet Nam has become increasingly linked to global trade networks, local small-and-medium-sized enterprises (SMEs) struggle to integrate globally, said Pham Thi Thu Hang, general secretary of the Viet Nam Chamber of Commerce and Industry (VCCI), at the workshop “Supporting international trade for SMEs” in Ha Noi on Tuesday.

Hang said that most small firms had not had the opportunity to join international trade activities. Research by the Asia Institute showed that the Vietnamese SMEs joined world trade at a lower rate than other countries in the region.

SMEs’ export turnover accounted for less than 20 per cent of the total, though they make up 98 per cent of the country’s total businesses. In addition, the portion of local SMEs participating in world trade was still low at 21 per cent. In Malaysia, for example, the figure is 46 per cent.

In order to take advantage of increasing opportunities to participate in world trade, SMEs need to update information of the macro-economy, improve financial capacity and international transaction ability.

VCCI’s figures show that only 14 per cent of Vietnamese SMEs have foreign partners and investors, while 65 per cent reported facing difficulties finding them.

“Given the SME sector is a key contributor to trade, employment and economic growth of Viet Nam, it is critical that the sector receive adequate support to grow strongly and sustainably,” she added.

She said the Government should enact policy reforms to help SMEs actively expand their business to the international market.

Nirukt Sapru, CEO of Standard Chartered Viet Nam and ASA Cluster Markets, said that Vietnamese SMEs had problems accessing loans and trade finance. He added that they faced a dearth of information, sale channels and experience in international transactions.

“For the last two decades, Viet Nam has benefited greatly from the expansion of trade and investment links with various countries around the globe – and SMEs play a crucial role in that process. As Viet Nam continues to expand trade with the rest of the world, SMEs will be a key part of this growth: in particular SMEs will be critical to further integrating Viet Nam with global supply chains,” he said.

Pham Hoang Tien, director of VCCI’s Centre for Supporting SMEs, said in recent years, the Government had promulgated policies to support SMEs, such as improving the business environment to create more favourable conditions for international integration.

The country has already reformed regulations relating to special inspection of goods and updated import-export services following international standards. 

SCG presents circular economy model at Vietnam Corporate Sustainability Forum

SCG, one of the leading conglomerates in the ASEAN, shared the company’s successful model of circular economy, which was considered a highlight at recent Vietnam Corporate Sustainability Forum (VCSF) 2017 organised by Vietnam Chamber of Commerce and Industry (VCCI).

More than 350 representatives from the government, the private sector, and leading civil society organisations gathered at VCSF to discuss innovative business solutions that are not only commercially viable but also effectively address environmental and social issues.

The presentation featured the model’s benefits in production efficiency, fostering wealth management, and employment opportunities, which will ultimately enable organisations to create value.

Montri Mahaplerkpong, vice president of SCG Vietnam, shared in the panel discussions of VCFS 2017 that to realise the goal of becoming a sustainable business leader in the ASEAN, SCG has made huge efforts to implement the circular economy concept throughout its supply chain, from raw materials through manufacturing to end consumers.

In procurement, SCG ensures suppliers have achieved a Green Level according to ISO 14000, and raw materials must acquire environmental certifications.

In manufacturing, SCG has successfully implemented a waste management system that is able to produce reusable water. Notably, SCG’s paper mills have managed to reduce water usage from 15 to 6.5 cubic metres per tonne, after which the water will be treated for rice farm irrigation. SCG’s products are also marketed in a manner that raises consumers’ awareness about sustainability and eco-value that impact people’s lives.

“In the near future, VCCI aims to assist Vietnamese businesses to implement the circular economy model for a non-waste generation production, creating more job opportunities, improving competitiveness in the private sector, and ultimately grabbing the $4.5 billion value brought by the circular economy”, said Vu Tien Loc, chairman of VCCI cum chairman of the Vietnam Business Committee for Sustainable Development.

SCG has been striving to drive the growth of sustainable businesses by managing natural resources to ensure effective utilisation to create value. In order to obtain this goal, SCG follows the circular economy concept by increasing production efficiency to maximise the potential of raw materials, utilise substitute and renewable ones, manage waste by recycling to give it maximum value.

Notably, SCG Packaging has enhanced all paper production technologies to enable the use of paper scraps as the main material substituting natural pulp, yielding high-quality paper.

Additionally, SCG Packaging’s sludge has been utilised to be reused as materials for Eucalyptus plantations, which is a raw material for paper production. This mean the company’s waste has been utilised to the highest degree to create value for its business.

“At present, SCG is focusing on research and development (R&D) to prepare for the future. The company has built an Innovation Centre and channels 1 per cent of its sales revenue every year into R&D activities. Adding to the existing 3R (reuse-reduce-recycle) initiative, the centre aims to re-design the company’s production process to achieve the “from cradle to cradle” model. This once again re-affirms our commitment to better people’s lives,” added Mahaplerkpong. 

As a result of its commitment and performance, SCG was recognised by Dow Jones Sustainability Indexes (DJSI), Robeco Sustainable Asset Management (RobecoSAM), and has been ranked for 13 consecutive years since 2004.

SCG, one of the leading conglomerates in the ASEAN, comprises of three core businesses: SCG Cement-Building Materials, SCG Chemicals, and SCG Packaging. With more than 200 companies under its umbrella and approximately 57,000 employees, SCG creates and distributes innovative products and services that respond to the current and future needs of consumers.

In Vietnam since 1992, SCG has committed to contribute to Vietnamese people’s living through several aspects ranging from high-quality products and services to corporate social responsibility activities.

To date, with a total of 21 companies across Vietnam driven by approximately 8,300 employees, SCG offers a variety of premium products and services.

Textile industry expo kicks off in Ha Noi     

Around 150 companies are showcasing their products at the 2017 Ha Noi Textile and Garment Industry Expo (HANOITEX 2017).

The expo, which opened on November 1, is being held at the International Centre for Exhibition on Tran Hung Dao street, Ha Noi.

The annual event draws business representatives from countries, including China, Germany, India and Indonesia, as well as Italy, the Republic of Korea, Malaysia and Pakistan, in addition to Singapore, Turkey, the UK, the United States and Viet Nam.

The three-day event is showcasing textile-garment machinery and equipment, high-quality silk and fabrics, dyeing equipment and chemicals, and materials and accessories across an area of 6,000sq.m.

Addressing the opening ceremony, Deputy Minister of Industry and Trade, Cao Quoc Hung, said the expo provided an opportunity for Vietnamese textile-garment producers to gain access to the latest technologies in the world, thus enhancing the value of Vietnamese products.

In order to implement its sustainable strategy by 2020, the Vietnamese garment and textile sector has focused more on high-quality and environmentally friendly technologies, said General Director of the Viet Nam National Textile Garment Group (Vinatex), Le Tien Truong, at the ceremony.

The event is co-organised by the CP Hongkong Exhibition Organisation Co., Ltd, VCCI Exhibition Service Co., Ltd (VCCI Expo) and the Viet Nam National Textile and Garment Group (Vinatex), under the patronage of the Ministry of Industry and Trade and the Viet Nam Textile and Apparel Association.

Meanwhile, about 500 firms will join the 17th Viet Nam International Textile and Apparel Accessories Exhibition (VTG 2017) in HCM City from November 22 to 25, featuring new solutions, technologies and equipment for the apparel sector. 

VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET