The southeastern province of Binh Phuoc is calling for investment in 13 industrial parks (IPs) with a total area of 4,500 hectares to boost its industrialisation.

Areas prioritised for investment attraction are petrochemical production, pharmaceutical chemistry, rubber, automobiles and spare parts, electronic parts, agricultural tools, and food processing machines.

In the agricultural field, investment will be focused on projects on processing animal feed, seafood production, farming technology, and crop and animal protection. Incentives will be offered to those in the specially disadvantaged areas.

Chairman of the provincial People’s Committee Nguyen Van Tram pledged that the locality will provide optimal conditions for investors.

Of the 13 IPs, eight, spanning nearly 1,200 hectares, have drawn 164 projects, including 64 domestic ones worth over 3.5 trillion VND (154 million USD). Most of them are in wood processing, garment, construction materials, electronic and automobile spare parts. They create jobs for over 40,000 labourers.

The province also has 30 industrial clusters, employing over 140,000 workers with an average income of 4.5 million VND (200 USD) per month.  The province is calling for investment in building social houses for local workers.

Binh Phuoc needs at least 20,000-25,000 labourers for industrial production in 2017.

Reference exchange rate goes down 1 VND

The State Bank of Vietnam set the reference VND/USD exchange rate at 22,198 VND per USD on the morning of February 3, down 1 VND from the day before.

With the current /- 3 percent VND/USD trading band, the ceiling exchange rate is 22,863 VND per USD and the floor rate is 21,534 VND per USD.

The opening hour rates listed by commercial banks saw rises from the previous day.

Vietcombank bought one USD for 22,605 VND, and sold one USD for 22,675, up 45 VND. 

BIDV listed the buying rate at 22,620 VND per USD and the selling rate at 22,690 VND per USD, up 40 VND.

In Eximbank, the buying rate was 22,590 VND per USD, up 40 VND, while the selling rate was set at 22,680 VND per USD, up 30 VND.

Vietnam’s casinos report slow business before lifting of gambling ban for locals

The numbers cast doubt on whether the industry, set to soon benefit from eased restrictions, has been as lucrative as many have thought.

For the last few years, Royal International, which runs the only casino in the northern border province of Quang Ninh has been in the red. In 2014, its net losses reportedly hit VND153 billion (US$6.7 million).
Since 1992, Vietnam has opened seven casinos in some of the most popular tourist destinations – Quang Ninh, for instance, is home to the famous Ha Long Bay. The casinos however are strictly reserved for foreigners only due to a long-running ban on gambling.

Various reports have suggested that it's a lucrative industry. But now casino owners across Vietnam claim that they are either losing money or making very little because foreigners, especially those from China and Taiwan, are becoming less inclined to gambling in Vietnam.

The casino in the northern port city of Hai Phong posted losses of up to VND169 billion a year between 2008 and 2012, according to a report from the local government.

Meanwhile Australia's Donaco International Limited, which operates leisure and entertainment businesses across the Asia Pacific region, highlighted in its annual report that last year’s net profit from its casino and hotel complex in the northern province of Lao Cai was one-tenth of its counterpart facilities in Cambodia.

The owners have also blamed their lagging business in recent years on a rapidly growing competition in which more casinos are fighting for fewer players from overseas.

According to Bui Quang Vinh, the Minister of Planning and Investment, many local governments have planned to bet big on gambling. Even one of Vietnam’s poorest provinces Ha Giang, with a majority working in agriculture, has asked for permission to build a casino.

The government last month said it would allow citizens over 21 years old with a monthly income of at least 10 million dong (US$445) to hedge bets in local casinos from mid-March under a three-year pilot program.

Vietnam's average annual income was around US$2,200 last year.

Since Vietnamese gamblers have no access to local casinos, they often go across the border to Cambodia where there are many centers mostly targeting Vietnamese players.

Vietnam’s decision to lift the ban, after long consideration, has sparked hopes that the local casino industry will soon witness a boom.

“Vietnam was viewed as a potential great investment opportunity should the government allow locals,” said Grant Govertsen, founding partner of Macau-based research firm Union Gaming Group, in a note to CNBC.

The Southeast Asian country is seen as a bright spot on the global gaming market as nearly 60% of its population is under 35, according to market research firm Nielsen, expecting the middle class to more than double in size between 2014 and 2020, from 12 million to 33 million.

Vietnam focuses on spearhead export sectors

Vietnam will focus on exporting staple products and adjust growth orientations of sectors in 2017.

Deputy Director of the Export and Import Department of the Ministry of Industry and Trade, Tran Thanh Hai, said the country will concentrate on product quality and added values instead of quantity.

“In the international market, good distribution, trade mark promotion, and product diversification will earn high profit. Planting and processing earn less profit or added values. Restructuring economic sectors is closely associated with trade policies, particularly export regulations. Import what we lack will benefit the economy," he said.
Vietnam’s export growth rate in 2016 increased 8% compared with the previous year. Export surplus was at US$2 billion.

Experts said Vietnam’s export and import are increasing in a sustainable manner.

City industry zone to double its size in $44m expansion

The HCM City People’s Committee has notified that the Lê Minh Xuân Industrial Zone in Bình Chánh District will be expanded.

The 100ha zone will be expanded by 110ha and cost the Bình Chánh Construction and Investment Joint-Stock Company VNĐ1 trillion (US$44.8 million).

The People’s Committee submitted the expansion proposal to the Government last May.

According to the city authorities, the expansion will create 10,000 jobs and bring the city VNĐ354 billion ($15.9 million) a year in taxes and land rents.

The zone has 175 projects with a total investment of $200 million.

Garment companies expect to perform better in 2017
     
Garment corporations expect to earn more through improved production and increased exports, hope to attract investments and go ahead with their expansion plans in 2017.

The Ha Noi Textile Garment Company (Hanosimex) has targeted a 10 per cent increase in revenue this year compared to 2016.

Nguyen Song Hai, general director of Hanosimex, said the company aimed a revenue of between VND2.8 trillion (US$123 million) and VND3 trillion, higher than last year’s VNĐ 2.7 trillion, with a profit of around VND75 billion.

To achieve this, Hanosimex must make significant changes to increase labour productivity and earn a free-on-board (FOB) export value of more than 50 per cent of the company’s total export, Hải said.

Hanosimex will focus on improving quality, determining its traditional customers and taking steps to develop new markets. Hai said the company would constantly study and improve product designs to suit the tastes of its consumers.

In 2016, because of difficulties in the world market, the export value of Việt Nam’s textile and garment industry touched only US$28.3 billion. However, Hanosimex met its assigned target and had encouraging achievements, Hải said. Despite everything, the company’s revenue in 2016 rose by 11.3 per cent compared to 2015 and profit reached VND74 billion, up 31.4 per cent year-on-year.

Meanwhile, the Việt Tiến Garment Joint Stock Corporation (VGG) aims to make $1 billion in exports by 2020, with an average growth rate of 15 per cent a year, its general director Bui Van Tien said.

In 2017, Tien said, VGG would focus on its ongoing investment projects, increase production at the local level, invest in automation technology and apply innovative production technologies to improve labour productivity and the quality of its products, especially using lean manufacturing tools designed to improve workplace efficiency.

The company will also endeavour to improve its work environment, better the living standards of its workers, develop distribution channels system and boost its image and brand, Tiến said, adding that the goal is to transform VGG into a multinational economic group over the next 40 to 60 years.

In 2016, the company’s revenue touched VND12.6 trillion, up 12 per cent year-on-year, while its pre-tax profit reached VND664 billion, up 4 per cent against 2015. Its export turnover was around $700 million, of which the Japanese market accounted for 32 per cent, the US 22 per cent and the EU 18 per cent.

The average monthly income of its workers was VND8.8 million, a five per cent year-on-year increase.

Meanwhile, the Pho Noi Textile and Garment Infrastructure Development Joint Stock Company, an investor in the Pho Noi textile industrial park (IP) in the northern Hung Yen Province, has announced that it would arrange for funds to complete its infrastructure system and develop the remaining area of the IP.

The company’s general director Nguyuen Hai Ha said it would implement professional services and utilities for investors, such as workers’ housing, customs service, offices for lease, commercial services, entertainment, child care and cultural and sports activities.

The company will also increase its water supply and drainage systems to the IP and collaborate with the municipal wastewater treatment centre and electricity providers to ensure the smooth operation of Pho Noi IP.

In 2017, the company will focus on improving development, strengthening its investment promotion programme, attracting investments for expansion of local production and seeking new customers.

Last year, the company pushed up its international integration, which was possible because of the various bilateral and multilateral free trade agreements, and the Government’s determination to improve the business environment. However, attracting investments remains a major challenge when the market offers many other attractive options. Besides, standards and regulations for environmental protection have been tightened, Ha said.

By the end of 2016, 80 per cent of Pho Noi IP’s infrastructure development was complete and its occupancy rate in Phase 2 had risen to 70 per cent from 35 per cent in 2015, with many investors from the US, the Republic of Korea and Hong Kong coming in.

Most investors have started the construction of their plants as soon as they got possession of the land, Ha said. 

January 2017 FDI higher year-on-year
     
 Foreign direct investment (FDI) into Viet Nam reached US$1.42 billion from the beginning of the year until January 20, according to data from the General Statistic Office.

The amount exceeded FDI during the same period in 2016 by 6.6 per cent.

During this time, Viet Nam attracted 175 newly-approved projects with total registered capital up to $1.24 billion, up by 37.8 per cent in terms of project number and 23 per cent in terms of capital compared with the same period last year.

Simultaneously, 76 projects from previous years had applied for capital adjustment with an additional amount of $179.2 million.

Estimation of capital disbursement for FDI in January 2017 alone reached $850 million, up by 6.3 per cent from the same period in 2016.

The real estate business attracted $297.4 million, accounting for 23.9 per cent of total national FDI.

In total, 26 cities and provinces of Việt Nam approved renewed FDI projects, in which southern Bình Dương Province had the largest amount of registered capital at $666.2 million, followed by northern Bắc Giang Province at $159.5 million.

In January 2017, out of 31 countries and territories with renewed FDI projects in Việt Nam, Singapore was the most significant investor with $416.7 million, accounting for 33.5 per cent of total renewed capital. The Republic of Korea was in second place with $347.8 million at 28 per cent, followed by China with $310.1 million at 24.9 per cent. — VNS

Bình Thuận wants floating solar power plant
     
The People’s Committee in southern Binh Thuan Province has given its approval in principle to the Da Nhim-Ham Thuan-Da Mi Joint Stock Company for a project on Da Mi Lake.

According to the Ministry of Industry and Trade, the company is allowed to conduct a research and feasibility study to build a floating solar power project on the lake.

The plant is not on the list of power sources of the national power planning until 2030, thus the committee has asked the ministry’s General Directorate of Energy to assess and add the project to the list under current regulations.

The plant will cover 57ha of lake surface on which solar panels will be installed and 67ha of land surface on which transformer stations and inverters will be constructed.

With an investment of VND1.5 trillion (US$66.7 million), the project will be able to produce an average of 69 million kWh in the first year of operation.

Located in the districts of Tanh Linh and Ham Thuan Bac, the project is expected to begin operation in 2019. 

VN seeks opportunity to export salt to Indonesia
     
Indonesia is allowed to import 1.4 million tonnes of salt this year because local supply failed to meet the demand of consumption and production, the Vietnamese Trade Office in Indonesia said.

The office said Indonesia had not yet said which country it would import salt from; however, it was an opportunity for Vietnamese salt businesses to access and expand their market to Indonesia.

The lack of salt was blamed on the heavy rainfall in recent days, which impacted the country’s salt production and harvest.

According to calculations, the reserve volume of salt in Indonesia is 110,000 tonnes. Meanwhile, the market demand in the first six months of this year is estimated at 700,000 tonnes.

To address the shortage, the Indonesian Ministry of Marine Affairs and Fisheries (KKP) and the Indonesian Central Bureau of Statistics (BPS) proposed that the government import 1.4 million tonnes of salt this year, of which, 226,124 tonnes of salt would be imported in the first quarter of this year.

The Vietnamese Trade Office in Indonesia said GARAM Company (Persero) was assigned to exclusively import salt for the country. The company has asked for a licence and is expected to import salt before May. 

Central province adds more industry and service complex

Quảng Nam province has approved the Hà Lam-Chợ Được Industry-Trade-Service Complex on 83.5ha in Thăng Bình district.

The province said the complex will be reserved for investors in agriculture and forestry, seafood processing, pharmaceuticals, mineral processing, garment, leather and craft.        

To date, the province has developed 19 industrial parks and complexes on a total area of 4,700ha.

According to latest reports, Chu Lai Open Economic Zone which was opened in 2003 has 109 investment projects, of which 29 are foreign direct investment (FDI) projects with combined registered capital of more than US$1.52 billion. Sixty-six projects, worth more than $837 million, are in operation, creating 12,000 jobs for locals.

The province also invested VNĐ825 billion ($39 million) to dredge the ports of Tam Hiệp and Kỳ Hà, to help cargo ships with capacity of 10,000 deadweight tonnage (DWT) and 20,000 DWT reach them.

Meanwhile, Chu Lai Airport plans to handle 2.3 million passengers and 1.5 million tonnes of cargo by 2025.

Quảng Nam has so far attracted 128 FDI projects with total investment capital of $2.1 billion.

Last year, the province commenced construction on two key projects – the Nam Hội An Integrated Resort Project, invested by VinaCapital and Gold Yield Enterprises Corporations, and the expansion of the Trường Hải-Chu Lai Mechanical Automobile Industrial Zone, with initial capital of $535.3 million.

NCB posts 90% increase in profit

National Commercial Bank (NCB) in 2016 posted net profit of VNĐ210 billion, increasing 90.9 per cent from the previous year and five times higher than before its restructure in 2013.

NCB has announced its business results for 2016, reflecting a high and positive growth rate.

By the end of last year, the bank’s total assets were VNĐ69 trillion, a 43 per cent year-on-year increase and 2.5 times higher in comparison with the period before its restructure.

Last year, its capital mobilisation rose by 25 per cent to reach VNĐ42.7 trillion, which was 2.3 times higher than that of 2013. NCB’s total lending in 2016 was 24 per cent more than 2015, reaching VNĐ25.3 trillion. Its bad debt rate was less than 2.07 per cent, reducing by three times following its restructuring.

“NCB has rapidly become one of the banks with high growth rate in profit from one of nine banks which were listed as weak and required restructuring,” the bank said.

The bank has focused on niche markets with individual customers and small-and-medium sized enterprises instead of the large firms segment.

In 2016, NCB successfully implemented the change of its core banking system, which is a pre-condition for modernisation. The system has helped the bank improve its ability to offer multi services, simplifying and closely controlling professionals as well as managing customers’ information.

Navibank was renamed NCB follow its self-restructuring in 2014.

Legality of condotels must be clarified
     
Experts said the legality of coastal condotels should be clarified since the product had recently emerged an investment trend in Viet Nam’s realty market.

According to Nguyen Quoc Khanh, president of G5 Property Trading Floor Alliance, condotel, a condominium operated as a hotel, is a new property product in Viet Nam but has already grabbed significant market attention.

Khanh cited statistics showing that in 2016 alone, there were more than 12,000 condotels put up for sale on the market.

However, the lack of regulations was hindering the development of condotels as well as investment in this segment, Khanh said.

Khanh said investors remained unclear about ownership when investing in condotels.

Developers were offering different durations for condotel ownership, which could be 50 years, 70 years or long term, depending on the project, and this was confusing investors, Khanh said.

He said the granting of condotel ownership certificate also faced obstacles as details had not been clearly laid out.

“Condotels are being developed mainly in tourist-attraction localities. The project can be developed on commercial service land which is for lease and not allowed to be sold like residential land. As a result, it is difficult to ask for an ownership certificate,” Khanh said.

In addition, there were no detailed regulations on the purpose of condotels as well as the fees to be collected.

Investors were also worried about the feasibility of returns that developers guaranteed and transparency on returning guaranteed profits, Khanh said. Popular rates of return that developers guaranteed for condotel investment were between eight and 14 per cent for a period of 5-10 years.

To promote condotel development, policies on ownership should be clarified and condotels should be added as a legal property product, Khanh said, adding that annual audit of condotel projects must be made mandatory to protect investors’ rights.

According to Doan Van Binh, deputy president of Viet Nam Real Estate Association, regulations on granting condotel ownership certificate, ownership duration and ownership transfer needed to be clarified to boost liquidity.

Binh said technical standards of coastal condotels must be issued early for appropriate operation.

According to Nguyen Van Nam, deputy director of Da Nang Construction Department, the development of condotels must be put under tight management to ensure compliance with urban planning and in accordance with technical infrastructure and tourism industry development. Responsibilities of developers, owners and ownership must also be clarified, Nam said.

Do Thu Hang, deputy director of property services firm Savills Ha Noi, said condotels made an appearance in Viet Nam’s realty market some five years ago and became an especially hot trend since last year. Hang forecast that liquidity of condotels would see improvement this year and remain an attractive investment channel. 

VN targets vegetable, fruit export value at $3b
 
Việt Nam expects to achieve US$3 billion as its total export value of vegetables and fruits this year, exceeding the vegetable and fruit industry’s target of $2.4 billion.
“After many years of export value under $1 billion, in recent years, the export value has made a breakthrough, which is why it was able to exceed the target this year, although there were many difficulties,” Huỳnh Quang Đấu, deputy chairman of the Việt Nam Vegetable and Fruit Association, told Việt Nam News.
This year and beyond, the vegetable and fruit industry will face long-term difficulties, including climate change, which would result in a reduction of vegetable and fruit output and quality, and land accumulation for the industry, Đấu said.
Meanwhile, most enterprises of the industry are small- and medium-sized units with less capital, said Đấu, adding that technical barriers in vegetable and fruit importing countries have also increased further.
However, in recent years, Việt Nam’s vegetable and fruits have entered markets with strict ruless, such as the United States, Japan, South Korea and Taiwan, as well as Australia, New Zealand and Chile, following 4-5 years of successful negotiation by the Ministry of Agriculture and Rural Development. Further, farms and enterprises have produced vegetable and fruit products meeting the quality and food safety standards in those countries, he said.
“That would be the basis for promoting exports this year and beyond,” Đấu said.
Nguyễn Đỗ Anh Tuấn, head of the ministry’s Institute of Policy and Strategy for Agriculture and Rural Development, said this year, enterprises and farmers would pour in investment into fruit, cashew and shrimp because those products have great potential in production and business.
In particular, they would invest in high-technological and clean agriculture to create leading brands for the global market, he said. The enterprises would focus on processing farming, forestry and fishery products to create new value and improve the level of Việt Nam’s products in the international market.
Fruit has great potential as people’s income increases, so does the demand for high-quality fruit, he said.
Last year, the nation’s total export value of vegetables and fruits was $2.4 billion, $200 million higher than the yearly target.
Solutions
Meanwhile, Mai Văn Trị, director of the Southern Fruit Research Institute (SOFRI), said export value of the vegetable and fruit industry has not met the industry’s potential because there are many kinds of fruits with low prices that do not have high export volume despite the high output.
For instance, Việt Nam mainly exported dried jackfruit or material of fresh jackfruit. Trị said local enterprises could process soft dried jackfruit to reduce the import of this product, Some other kinds of vegetables and fruits such as pomelo and purple sweet potato have output which just meets local demand, but not high enough to export.
Enterprises have not diversified their fruit processing and not seen sustainable development in material region for export processing, he said.
Đinh Cao Khuê, general director of Đồng Giao Export Food Joint Stock Company, said, so far, there are a small number of vegetable and fruit material regions nationwide that meet the demand of the processing industry.
In the north, there are pineapple regions in Đồng Giao, Ninh Bình and Lao Cai provinces, which produce a total of 70,000 tonnes per year, of which 50 per cent is used for local consumption and 50 per cent is for export processing.
Lục Ngạn District in Bắc Giang Province and Thanh Hà District in Hải Dương Province have high longan output, but the period for harvesting and processing this product is just one-and-a-half months. Meanwhile, other special fruit products, including orange in Hà Giang Province, Hàm Yên-Tuyên Quang Province, Cao Phong-Hòa Bình Province and Lục Ngạn-Bắc Giang Province, have output that is enough to meet domestic consumption requirements.
In fact, Việt Nam has many areas that can be used develop material regions of vegetable and fruit for export processing, bringing higher economic efficiency to provinces, Khuê said.
Central highlands provinces such as Đắk Nông and Gia Lai could develop material regions of passion fruit, Japanese sweet potato, sweet corn, spinach and pepper because there is high demand for these products in the global market. Meanwhile, the northern provinces of Lào Cai, Sơn La and Lai Châu are suitable to grow pineapple instead of rubber trees, which have a low level of development in these provinces.
The state needs to plan and develop material regions connecting with the development of processing factories and expanding the regions to neighbouring provinces, Khuê said. Đồng Giao Export Food JSC has enough material of pineapple for export processing because along with material regions in Ninh Bình Province, the company must combine with regions in the neighbouring provinces of Thanh Hóa, Thái Bình, Hải Dương and Bắc Giang, as well as Hà Giang and Tuyên Quang.
Additionally, Khuê said Việt Nam should promote advertising at international fairs for farming products to study and expand export markets, including fairs in Germany, France, Russia and Japan.
Phạm Công Dũng from the Department of Agricultural Forestry and Fishery Processing and Salt Industry said the Ministry of Agriculture and Rural Development has promoted restructuring of agriculture and planned material regions with advantages.
For export activities, the ministry has cooperated with relevant state offices to enhance trade promotion activities for Vietnamese fruit products to increase market share, he said.
Each trade office of Việt Nam in foreign countries would conduct marketing activities for local fruits for the Vietnamese community living abroad and the locals.
The ministry would control further import of fruits through technical barriers under international rules to protect local fruits in a legal manner and stop illegal fruit imports, he said.

State Audit should boost int’l cooperation to strengthen capacity: PM

Prime Minister Nguyen Xuan Phuc has asked the State Audit Office of Vietnam (SAV) to enhance international cooperation to learn from other countries, helping improve its capacity.

Meeting with SAV staff in Hanoi on February 2, he said the Government hopes the agency will become an effective tool of the Party and State in financial and public asset management.

Highlighting successful auditing activities, especially the recovery of more than 115 trillion VND (5.08 billion USD) for the State budget, he said the SAV’s activities have won increasing support from the Party, State and people.

The SAV has also found loopholes in state management through its activities, which helps the Government address shortcomings, he noted.

PM Phuc said he wants the SAV to become an incorruptible, facilitating and action-oriented part of the Government.

As the SAV prevents the misuse of power in financial and state asset management, it should reinforce its apparatus, enhance its capacity and professional etiquette.

The leader asked the SAV to be proactive in development while pressing ahead with policy research to give suggestions to the Government and other agencies.

It is also critical to step up administrative reform and cut down auditing time to better serve people and businesses, he added.

At the meeting, SAV Auditor General Ho Duc Phoc reported auditing has helped fine-tune regulations, policies and laws, contributing to the fight against corruption and wastefulness.

The SAV has proposed penalties for hundreds of violating collectives and persons, transferred many cases to investigation agencies and provided documents for authorised bodies to carry out examination, supervision and legal proceedings.

The SAV succeeded in auditing the restructuring and assessment of the value of State-owned enterprises, helping protect the State’s benefits before equitising these firms, Phoc noted.

Exports to US up nearly 15%

Vietnam exports to the US increased by nearly 15% to US$38.5 billion last year while imports rose by 11.7% to US$8.7 billion, according to statistics of Vietnam Customs.

Thus, Vietnam still enjoyed a trade surplus with the US – its second largest trade partner after China.

The US is also the top importer of many Vietnamese key products. Garment ranked first with an export value of US$11.5 billion, accounting for nearly 30% of total exports to the US and 48% of Vietnam’s total garment exports in 2016.

Footwear came second with US$4.5 billion, making up 11.7%. Telephones and components went third with US$4.3 billion, accounting for 12.5%.

The US has overcome the UAE to become the biggest importer of Vietnam telephones and components.

Other products having an export value of more than US$1 billion included computers, electronics and components (US$2.9 billion), wood and timber products (US$2.8 billion), machines, equipment and tools (US$2.1 billion), seafood (US$1.4 billion), bags, wallets, suitcases, hats and umbrellas (US$1.3 billion).

In general, most export products to the US obtained a growth. It’s noteworthy that steel grew 328% to US$568.5 million and film cameras skyrocketed more than 200%.

Vietnam banks offer promotions as gold market tenses for God of Wealth Day

Banks in Vietnam return after the Lunar New Year festival with promotions to attract deposits while the local gold market builds up speed in anticipation of the God of Wealth Day.

At Saigon-Hanoi Bank (SHB), customers who add from VND20 million (US$893) to their savings accounts on the days immediately after the Lunar New Year (Tet) fest, which lasted a week from January 28, are given codes to participate in lucky draws to win valuable prizes.
Other banks hand out ‘lucky money’ to the first customers after the week-long Tet holiday, while Vietnam Export Import Bank (Eximbank) returns VND100,000 (US$4.5) for every VND100 million (US$4,464) deposited in those savings accounts with terms of between 15 and 36 months.

Those who open a new savings account at Southeast Asia Bank (SeABank) are given a gift voucher for shopping at the BigC supermarket chain, the value of which depends on the amount of money deposited.

Many local banks had raised their deposit interest rates by 0.1-0.2 percentage points prior to Tet, with the highest interest at Eximbank and DongA Bank currently at 7.5% for long-term deposits.

Meanwhile, local gold dealers have also returned to business on Thursday as global prices are rising in the wake of the weakening of the U.S. dollar since U.S. President Donald Trump took office last month.

Gold supplied by Ho Chi Minh City-based Saigon Jewelry Company (SJC) are selling at VND37.55 million ($1,676) per tael (37.5 grams) and being bought at VND37.1 million ($1,656) per tael, according to local gold dealers.

Experts predict Vietnam’s gold market to be building up speed in the coming week as locals wait for the God of Wealth Day to buy their first gold in the new lunar year in the hope of a prosperous year.

As per Vietnamese tradition and custom, the tenth day of the lunar year, which will fall on February 6 this year, is the day when the God of Wealth returns to heaven, creating the belief that buying gold then will bring good luck and prosperity throughout the year.

Thai billionaire wants to pour more money into Vinamilk

F&N Dairy Investments has registered to purchase 21.77 million shares of Vinamilk in February after acquiring more than 16.5 million shares before the Lunar New Year Festival.

If the transaction is successful, F&N Dairy Investments will own nearly 236.5 million Vinamilk shares, equaling to 16.29% of Vinamilk charter capital.

With the current price of VND133,000 (US$5.78) per share, F&N Dairy Investments will have to spend nearly VND3 trillion (US$130.4 million).

Earlier, from December 30, 2016 to January 27, 2017, it had registered to buy the same number of Vinamilk shares but succeeded in purchasing only 16.5 million shares worth more than VND2.1 trillion (US$91.3 million).

F&N Dairy Investments belongs to Singapore F&N owned by Thai billionaire Charoen Sirivadhanabhakdi.

Vinamilk has recently announced its trading results in 2016. Its total revenue increased by 16% to VND46.965 trillion (US$2.041 billion) and after-tax profit grew 20.52% to VND9.364 trillion (US$407 million).

30% of Vietnamese population to shop online by 2020

The Ministry of Industry and Trade has set a goal to get 30% of Vietnamese people shopping online by 2020.

The target is part of the general plan for e-commerce development during the 2016-2020 period, which has been approved by the prime minister.
  
The plan aims for an average growth rate of 20% per year for business-to-customer transactions to reach USD10 billion by 2020, accounting for 5% of total retail and consumer service value, with an average spending at USD350 per capita.
Nguyen Thu Thuy, Senior Manager of Consumer Insights Board of Nielsen Vietnam, said Vietnam boasts many favourable conditions for economic development when young people account for a third of the country’s population. Meanwhile, the middle class is expected to rise to 33 million by 2020.
Around 50% of Vietnam’s urban residents who use smart phones engage in online shopping activities. Meanwhile, 92% of internet users in Hanoi and HCM City also shop online, particularly those aged between 21 and 34.
The draft plan for e-commerce development in the 2016-2020 period has also set a goal of approximately 60% of businesses having a presence on the internet, regularly updating information to introduce and sell products, with 80% of businesses taking orders online.

Hanoi's wastewater treatment plant financial issues audited

The State Audit Office of Vietnam has requested the investor of the Yen So Sewage Treatment Plant to return millions of US dollars after uncovering various violations.

Yen So Plant is a build-transfer project between Hanoi authorities and the Malaysian group Gamuda Berhad. The project's investment was estimated at nearly USD250m. The plant was built from 2009 to 2012.

However, according to the State Audit Office of Vietnam, there were errors in the project's balance sheet that cost up to USD147.8m. It demanded the group to adjust final accounts at the end of the project to USD61.9m.
  
The State Audit Office of Vietnam asked the investor to return USD22.1m to the city. The investor can either return the plot of land of equivalent value or the money or both. The Taxation Department was asked to review the declaration and payment of taxes of Gamuda Berhad and the authorities of Hanoi was asked to deal with over USD86.8m in other financial issues.

In addition, the group hasn't returned the investment in several constructions that were not approved by the city. For example, five reservoirs that cost USD6.77m which were not approved in the investment decision.

The office also proposed to review responsibility of the Department of Natural Resources and Environment and the Gamuda Land Vietnam Company.

Yen So Sewage Treatment Plant was part of the Yen So Park before being converted into a BT project.

18 major projects under reassessment

The Government Office has announced an audit of major state-invested projects with funding of more than VND10 trillion (USD443.27 million).

In the instruction, PM Nguyen Xuan Phuc agreed with a proposal from the Ministry of Planning and Investment not to reassess projects that had more than half of its investment implemented.
PM Phuc asked the ministries of Transport, Defence, Industry and Trade, Construction, and Science and Technology to co-operate with localities to reassess underway projects that are less than half-finished.
The Ben Thanh-Suoi Tien and Ben Thanh-Tham Luong Urban Railway lines in HCM City, the Da Nang-Quang Ngai Expressway, and the Nhon-Hanoi Station metro route in Hanoi are among 11 transport projects which will be reassessed this time.
Hanoi's first urban railway from Nhon to Hanoi Railway Station which was kicked off in September 2010 and scheduled to be completed by 2016 may have its completion date adjusted to 2019. Its investment was also raised to USD1.57 billion in 2015, while costs continue to spiral.
The Industry and Trade sector also has three projects subject to inspection, O Mon 3 and 4 Thermal Power Plants, and the Bac Ai Hydropower Plant, while the construction sector has two – stage 2 of HCM City’s Environmental Project and the Yen Xa Wastewater Treatment System in Hanoi.
Earlier, in a meeting with the Ministry of Planning and Investment in mid-2016, the PM had raised the issue to ensure that investment was being properly used.

Vietnam is the fourth largest squid exporter to European Union (EU)

The Vietnam Association of Seafood Exporters and Producers (VASEP) said that in recent years the European Union (EU) has increased octopus imports. Spain is a leader in this sector.
Accordingly, Spain accounted for 39 per cent of all octopus exports to the EU; Italy accounted for 33 per cent and Portugal for over 6 per cent.
The EU's top import is frozen squid followed by frozen octopus. The two items account for over 80 per cent of total imports to the EU.
Vietnam is the fourth largest squid exporter to the European Union in Europe, accounting for over 6 per cent of the total value of EU imports.
The amount of Vietnamese squid exports in the first 9 months of 2016 was higher than the same period in 2015.
However, the average price of Vietnamese squid exports from the same time period has decreased compared to 2015, but it is still higher than the average price of EU imports.
VASEP is a social organization composed of professional businesses and organizations that are active in the field of production, processing and exporting Vietnam's seafood. It was established to gather and unite its members, protect rights, legitimate interests, and the legitimacy of its members; it also helps raise the value, quality and competitiveness of Vietnam’s seafood products.
In addition, it was developed to create tools for seafood processing and contribute to the economic development of Vietnam.

Vinaseed records high profits

The Vietnam National Seed Joint Stock Company (Vinaseed) recorded high profits in 2016 after ten years of being listed on the stock market.  
The company’s revenue in quarter 4, 2016 reached VND434.6 billion ($19.1 million), up VND8 billion ($352,000) compared to quarter 4 of 2015.
The company’s profit before tax reached VND81.12 billion ($3.56 million), up 74 per cent compared to quarter 4 of 2015. Profit after tax reached VND73.4 billion ($3.2 million).
In 2016, Vinaseed’s revenue reached VND1.32 trillion ($58 million), up 6 per cent year-on-year and higher 4 per cent compared to what was planned. The company’s 2016 gross profit reached VND501 billion ($22 million), up VND46 billion ($2 million) compared to 2015.
Profit after tax reached VND193 billion ($8.49 million), up 23 per cent year-on-year. Although it did not reach its target, the profit after tax in 2016 was the highest since the company got listed on the stock market.  
By the end of 2016, Vinaseed’s total assets reached nearly VND1.5 trillion ($66 million), down 60 billion ($2.64 million) compared to the early part of the year. Its equity reached VND1.08 trillion ($47.5 million).
Vinaseed has been standing out in the agriculture sector for the last three years, conducting a number of merger and acquisitions (M&A) worth VND379 billion ($16.67 million) in total.
It increased its ownership in the Quang Nam Seed Agriculture and Forestry Company (QSC) from 60.24 per cent to 85.8 per cent, became the largest shareholder in Thai Binh Seed JSC, and increased its holding in SSC to 61.4 per cent.
Ms. Tran Kim Lien, Chairwoman and CEO said that the three greatest successes in 2016 were establishing two new branches, one in the central highlands and the other in the Mekong Delta’s Dong Thap province, initially restructuring the Southern Seed JSC (SSC), and expanding Vinaseed’s agricultural production chain by establishing a high-tech company in the northern province of Ha Nam.
Though optimistic about the development of agriculture in the times to come, Ms. Lien is nonetheless focused on the challenges that await. “Global climate change is becoming more serious and will significantly have an impact on agriculture,” she said. “We are now thinking of solutions to cope.”
How to operate the Southern Seed JSC well is also a concern. “After the merger and acquisitions, differences in work culture and governance are challenges that I have to work on to improve in 2017,” she said.

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