Bao Viet & Munich Re launch storm coverage product

The Bao Viet Insurance Corporation (Bao Viet Insurance) and the Munich Reinsurance Company (Munich Re) officially launched their new “One Storm” insurance product on August 31 in Hanoi, providing protection against losses caused by typhoons. 

Due to its tropical monsoon climate, Vietnam is in the path of many major storms, which regularly cause devastating losses. Businesses understand the importance of having solutions to protect their assets from unexpected disasters. Whenever a risk such as a tropical storm arises without proper preparation or having a safety solution in place, there may be financial difficulties due to the fact that the damaged property is not adequately protected or below their actual deductible.

This new non-traditional insurance solution is a parametric trigger typhoon risk cover, which protects fixed assets in operation or under construction, determined by the exact insured location (latitude, longitude) both onshore and offshore.

Unlike a traditional insurance product that only covers a policyholder’s losses following physical damage, “One Storm” handles claims by quickly paying out even without any physical damage incurred. Risk holders can check their pay-out in real time after a storm takes place at onestorm.munichre.com, with data being identified and verified by an independent third party, the Japanese Meteorological Agency (JMA).

This specific product targets customers such as organizations, power plant operators, big corporations, industrial enterprises, and government agencies, with a compensation limit from VND10 billion ($440,000) to VND100 billion ($4.4 million) per damaged location.

Fixed assets are not only covered under the five storm levels, as clients are also insured for non-material claims including loss of profits due to business interruptions, loss prevention costs, overtime paid, coverage for deductible of traditional property insurance policies, and costs of claim settlement for damage caused by the storm.

In addition, the “One Storm” product provides customers with financial support to minimize losses even though no deductible is applied, cover for losses below the deductible of other ordinary insurance claims, and simple and quick compensation procedures to finance investment activities and maintain business activities.

“Bao Viet Insurance’s main policy in 2017 is to strengthen its cooperation with reputable international partners in order to provide products and services,” Mr. Nguyen Quang Hung, Deputy CEO of Bao Viet Insurance, told the launch ceremony, adding that “One Storm”, which is a first in Vietnam, brings many favorable options to customers.

“This product cooperation showcases a win-win situation that could serve as a role model,” said Mr. Achim Dosch, Head of Section Engineering Construction CIP at Munich Re. “Bao Viet brought in their excellent market network, while Munich Re contributed with research and product development expertise. This is further proof of our ambition to be at the forefront of product innovation to the benefit of our clients.”

The launch of “One Storm” is the result of close cooperation between the two partners, mobilizing the strength of each to provide good experience and satisfaction with the product as well as the best quality of service to customers. The cooperation of the Number 1 non-life insurer in Vietnam, Bao Viet Insurance, with global reinsurer Munich Re, promises to provide many solutions to protect customers against the risk of tropical storms in Vietnam.

NFSC: 8M credit growth at 11.5%

Total outstanding loans in Vietnam grew 11.5 per cent in the first eight months of this year, faster than the 10.2 per cent recorded in the same period last year, the National Financial Supervisory Commission (NFSC) announced in a report.

Of total credit, VND-denominated loans accounted for 91.5 per cent while loans in foreign currencies made up 8.5 per cent. Lending in foreign currencies grew 11.5 per cent in the eight-month period, much faster than the 1.7 per cent growth in the same period last year, with lending in VND growing 11 per cent.

Some 31.2 per cent of total credit was funneled into manufacturing and construction while 37.4 per cent went to services.

According to the report, growth in capital mobilization was much slower than for credit, at 9.1 per cent between January and August. Deposits from clients went up 8.7 per cent since the end of 2016.

Notably, deposits from the State Treasury of Vietnam rose 68 per cent to around VND160 trillion ($7 billion) as at the end of August, it added.

The NFSC pointed out that system liquidity was profuse, evidenced by interbank interest rates remaining low and edging up 0.2-0.3 percentage points from the end of July.

In addition, the State Bank of Vietnam (SBV) net withdrew VND4.5 trillion ($198 million) between August 1 and 22, leading to a net withdrawal of VND32.63 trillion ($1.43 trillion) since the start of the year.

At a monthly cabinet meeting on August 29, Prime Minister Nguyen Xuan Phuc asked the central bank to boost lending growth to at least 21 per cent, or three percentage points higher than the initial 18 per cent target adopted by the National Assembly, and to reduce loan rates by 0.5 percentage points.

According to a government report, credit growth was 10.06 per cent as at August 21, compared to 9.01 per cent in the same period last year.

A number of economists have warned that 21 per cent credit growth is high for the country’s nominal GDP growth and the task of monitoring needs to be strengthened to ensure loans are funneled into production and business and away from speculative sectors. 

Mr. Nguyen Duc Khanh, Director of Investment Strategy at the Ho Chi Minh City Securities Corp. (HSC) brokerage firm, said that such an upwardly revised credit growth target risks fueling inflation. Agreeing, a 15 per cent growth rate for lending would already be considered high for an economy that grows 6.5 per cent annually like Vietnam, according to Mr. Vu Thanh Tu Anh, Research Director at the Fulbright Economic Teaching Program.

Faster credit growth in Vietnam is likely to undermine macroeconomic stability, particularly amid already rapid credit growth. The focus on GDP growth via credit growth is credit negative for the sovereign and its banks, Moody’s Investor Service wrote in a recent note. Policymakers’ focus on achieving GDP targets risks compromising banks’ asset quality and, hence, broader macroeconomic stability, it added.

Coca-Cola completes additional investment

Coca-Cola Vietnam has recently announced the completion of additional investment of $300 million in Vietnam during the 2013-2016 period. The company officially put into operation a new warehouse and an ameliorated wastewater treatment system featuring state-of-the-art equipment and advanced technology at its Da Nang production plant; a milestone marking the fulfillment of the project.

This is yet further demonstration of Coca-Cola’s strong commitment to sustainable investment in Vietnam, setting business development goals that are in parallel with positive impacts on the community.

“Aimed at operating as a long-term investor in Vietnam, Coca-Cola has always focused on generating more added value that benefit both the business and the community’s living standards,” said Mr. Calin Dragan, Regional Director at Coca-Cola ASEAN and Middle East. “This is demonstrated through significant progress made in the utilization of green technology in every Coca-Cola plant, diversifying its product range to best meet consumer tastes, and pursuing community programs on a long-term basis.”

The company’s investment activities in Da Nang are in line with the direction of bringing practical values to the community and making Da Nang a new economic driving force in Vietnam and the region. The warehouse and wastewater system are equipped with the latest in technology and expresses the company’s commitment to the development of Da Nang in particular and Vietnam in general. The project’s completion is fundamental to Coca-Cola’s subsequent steps towards sustainable growth in Vietnam.

The Da Nang plant now has four manufacturing lines using cutting-edge technology. During the course of development, the plant has been continuously upgraded with smart, environmentally-friendly technologies that have secured stringent quality certificates in Vietnam and globally.

Total investment for upgrading the Da Nang plant’s warehouse and wastewater treatment system was nearly $5 million. The new warehouse, with a total area of 4,800 sq m and a capacity of 4,000 pallets, can be further transformed to a smart warehouse to store up to 8,000 pallets.

“With the goal of becoming one of the largest cities in the country, Da Nang always focuses on developing both its economy and environmental protection,” said Mr. Tran Van Mien, Deputy Chairman of the Da Nang People’s Committee. “City authorities always encourage companies and organizations to protect the environment. We greatly appreciate the commitments by Coca-Cola, a companion of the city for 20 years, to build long-term goals in not only economic development but also in providing a better living environment to the community.”

A memorandum of understanding was also signed between Coca-Cola Vietnam and the University of Industry on a program that provides clean, safe drinking water to students at secondary and high schools in the city through the supply of 65 drinking water filtration systems, worth up to $520,000.

August FDI in Hanoi at $1.74bn

Total foreign direct investment (FDI) into Hanoi stood at $1.74 billion in August, according to the Hanoi Department of Planning and Investment.

The city has welcomed 114 projects with total registered capital of VND70.6 trillion ($3.2 billion) this year and 22 public-private partnership (PPP) projects with total investment of VND60 trillion ($2.7 billion).

The city's industrial production index increased 5.7 per cent in August compared to August 2016 and was up 6.5 per cent in the first eight months of this year.

Goods and services revenue increased 12 per cent year-on-year and 8.8 per cent in the first eight months.

International arrivals in Hanoi reached 313,000 during the month, up 9.9 per cent compared to July and 53.8 per cent year-on-year. Total international arrivals reached over 2.3 million in the first eight months, an increase of 22.7 per cent year-on-year.

Revenue from hotels and tourism stood at VND5.1 trillion ($233.6 million) in August, up 13 per cent year-on-year, and was VND39.9 trillion ($1.8 billion) in the first eight months, up 9 per cent year-on-year.

There were 16,714 newly-established enterprises with total registered capital of VND129.2 trillion ($5.8 billion) during the month, while 177 enterprises were dissolved and 2,497 resumed operations after being temporarily suspended.

Figures from the Ministry of Planning and Investment (MPI) reveal that more than 23,000 FDI companies are operating in Vietnam, contributing 22-25 per cent of capital and up to 15 per cent of State budget contributions. They now employ about 7 per cent of the country’s workforce and account for more than 70 per cent of total export turnover.

Data from the World Bank shows that as at the end of 2016, the FDI sector had contributed around 19 per cent of Vietnam’s GDP; almost double the rate recorded in 2000.

The ministry is also drawing up a report evaluating the impact of FDI in Vietnam during the 30 years since the Law on Foreign Direct Investment opened the country’s doors to multinational companies.

Nepal seeks tourism cooperation with HCM City

Twenty-one Nepalese businesses operating in the aviation and tourism sectors recently visited Ho Chi Minh City to study potential tourism cooperation and sign agreements in this field with the locality. 

Nepal is home to eight of the ten highest mountains in the world, including Mount Everest, dubbed the “roof of the world,” along with many historical and religious relic sites. 

Therefore, the focus of the tourism cooperation will be climbing and spiritual tourism. 

Anil Lama, President of the Nepal Society of Travel and Tour Operators, said at an exchange programme in HCM City on September 10 that apart from exploring Mount Everest, visitors can take part in other activities like pilgrimages, boat rides and parachuting.

US power company wants to invest in gas-fired power project

The US-based power company AES Corporation said it wants to join the PetroVietnam Gas JSC (PV Gas) in the Son My 2 gas-fired thermal power project.

The proposal was made by President of AES Vietnam David Stone during a recent working session with PetroVietnam group. 

PetroVietnam deputy director general Nguyen Hung Dung affirmed that the group is ready to work with US investors, including AES, in the oil and gas sector, especially gas-fired thermal power projects.

The Son My 2 is one of the nine gas-fuelled power projects that the Government has assigned PetroVietnam to invest in. The project consists of three power plants using liquefied natural gas, with designed capacity of 750 MW each. Built at the Son My industry-services-gas complex in the central coastal province of Binh Thuan, the facilities are set to become operational in 2023, 2024 and 2025.

The AES, which is listed in the US Fortune-200, joined shareholders from subsidiaries of Posco Energy Corporation from the Republic of Korea and China Investment Corporation to form the AES-VCM Mong Duong Power Company Limited in Vietnam. 

The company is known for its 1,242 MW Mong Duong 2 power plant. The coal-fired power project plant was built under a Build-Operate-Transfer (BOT) agreement and would be transferred to the government after 25 years.-

Dak Lak calls for investment from Australian firms

A delegation of the Central Highland province of Dak Lak, led by Vice Secretary of the provincial Party Committee Y Bier Nie, held a workshop in Sydney, Australia to call for Australian investment in the province.

The event, organized with the coordination of the Australia – Vietnam Business Council (AVBC), saw the participation of AVBC members and dozens of local businesses.

Dak Lak representatives took the occasion to introduce the province’s natural conditions, socio-economic situation, potential and disadvantages. 

Announcing a list of priority projects in need of investment, Dak Lak officials highlighted hi-tech agriculture, agricultural product processing, garment-textile, wind power, solar power, services and tourism.

The province also announced incentives for investors in terms of land, taxes, favourable administrative procedures, among others.

Australian firms inquired for information of the province’s key projects, focusing on the export of coffee beans and pepper, education, technology transfer, tourism and real estate.

A number of Australian firms registered to visit Dak Lak and work with its enterprises to explore investment projects and environment.

Previously, the delegation and VBAA also hosted a similar workshop in Melbourne. 

Australia is the second foreign market Dak Lak chose to promote investment, following the Republic of Korea.

HCM City seeks policy research cooperation with Chinese partner

Ho Chi Minh City wants to boost cooperation with the Development Research Centre of the State Council (DRC) of China in policy research and consultation.

During his reception for the Centre’s Party Secretary Wang Anshun in HCM City on September 9, Secretary of HCM City Party Committee Tat Thanh Cang asked the centre to share its experience in addressing urban issues, including traffic infrastructure development, climate change adaption, and urban population pressure.

He lauded the effective operation of the Linh Trung Export Processing Zone, a joint project of Vietnam and China, saying that it has lured numerous domestic and foreign investors, contributing to the city’s industrial production and economic development.

For his part, Wang Anshun expressed his hope to boost cooperation with the city in urban management and building of socio-economic development targets and plans.

He underlined the importance of policy research and consultation to serve national development, affirming that the cooperation between his centre and the Economic Commission of the Communist Party of Vietnam’s Central Committee will make a significant contribution to the sustainable economic development of each nation, thus consolidating the Vietnam – China friendship.

Tra fish exports to US on course

Despite a new US requirement that foreign exporters demonstrate their food safety control system is equivalent to American regulations, no backlog has been recorded in Vietnamese tra fish exports to that country. 

The US Food Safety and Inspection Service (FSIS) began applying the new regulations for Siluriformes fish on August 2, instead of September 1 as announced earlier, mandating the checking of all shipments for records, packaging and labels.

Siluriformes fish include tra, basa, tre and lang fish.

The US is the second largest importer of Vietnamese tra fish, receiving 22 percent of Vietnam’s total exports of the catfish. US imports of tra were worth 220.8 million USD in the first eight months of this year, up 3.3 percent over the same period last year.

Only three or four Vietnamese firms have been able to export several tra products, including cut catfish, frozen catfish fillet, frozen rolled catfish and powdered fillets, to the US, said the Ministry of Agriculture and Rural Development (MARD).

A report from the Vietnam Association of Seafood Exporters and Producers (VASEP) showed that the country earned 1 billion USD from the export of seafood in the first seven months of this year, a year-on-year increase of 8.2 percent.

Although tra fish exports to EU states dropped 23.5 percent, new markets such as Brazil, Mexico, Colombia and Saudi Arabia were seeing steady growth.

In the first eight months of this year, the production of tra fish in Mekong Delta provinces reached 815,500 tonnes, up 10 percent year-on-year. Dong Thap is the province with the largest harvest at 303,400 tonnes, up 25.4 percent over the same period in 2016.

According to the head of the Dong Thap Aquaculture Product Department, Le Hoang Vu, tra fish are raised on 1,504 ha in the province, more than 809 ha of which are certified under the standards of VietGAP, GlobalGAP, Best Aquaculture Practices (BAP) and Aquaculture Stewardship Council (ASC).

The province has 20 seafood processing factories with a total designed capacity of more than 467,000 tonnes per year. It has produced an estimated 180,000 tonnes of tra fish in the first eight months of this year, reaching nearly 500 million USD in export turnover.

The province plans to expand its breeding area to 2,000 ha by 2020, with an output of more than 541,000 tonnes of tra fish per year.

Vietnamese tea exporters enjoy robust achievements

Vietnam’s tea exports in the first eight months of the year reached 90,000 tonnes, earning 142 million USD, up 12 percent in volume and 11.8 percent in value compared to the same time last year, according to the Vietnam Tea Association.

Tea was sold at nearly 1,570 USD per ton on average, down 1.5 percent from last year.

Pakistan imported the most tea from Vietnam.

Other top tea consumption markets included India, the United Arab Emirates and Taiwan (China).

Tea exporters said that there is an abundance of raw materials thanks to safe cultivation applied in all tea zones nationwide.

Leather, shoe exports top 9.6 billion USD

Leather and footwear exports in the first eight months topped 9.64 billion USD, a year-on-year increase of 12.2 percent, according to the Ministry of Industry and Trade.|

Vietnam’s leather and footwear products went to 100 countries, with the US, EU, Japan, China, and the Republic of Korea being the main buyers, it said.

Foreign companies accounted for more than 81 percent of the figure.

The Vietnam Leather, Footwear and Handbag Association (Lefaso) said local companies lack the resources to expand production or market, while foreign-invested firms have for many years invested to expand to capitalise on free trade agreements that Vietnam had signed or was set to sign, it said.

So the latter’s exports keep increasing, it added.

Though intra-ASEAN exports enjoy zero tariffs, leather and footwear exports to member countries remain modest compared to the sector’s potential.

The exports were worth less than 400 million USD last year, going mainly to Singapore, Malaysia, Thailand, and the Philippines.

According to trade experts, footwear companies do not treat ASEAN as a key export market.

But according to Lefaso, ASEAN is a hard market to crack since many other members are also strong players, especially Thailand and Indonesia.

Besides, many put up technical barriers to protect their domestic production, the ministry said.

Experts said that this year the world economy is expected to be better than in 2016, and China would continue to reduce investment incentives for textile and footwear to focus on high-tech sectors, meaning orders for shoes and bags would continue to move from China to Vietnam.

Nguyen Duc Thuan, Lefaso Chairman, said production and export of leather and footwear have been good this year.

The association forecasts exports to be worth 17.8-18 billion USD this year, an increase of 10 percent over last year, he said.

Channel News Asia: Vietnam’s strong growth is likely to persist

Vietnam’s strong growth is likely to persist thanks to its young, ambitious, and business savvy population, said an article published by Singapore-based Channel News Asia. 

The commentary, titled “Ambitious and smart, youths in Ho Chi Minh City are building Asia’s Silicon Valley” by Stephanie Jones and Rafael Masters, said that Vietnam, for the last few years, has seen remarkably strong, continuous growth, averaging 6.15 percent each year since 2000.

Urbanisation and a growing middle class are fuelling economic growth and driving the creation of new commercial opportunities. 50 percent of the population have access to the internet and more than a third use smartphones, according to the article. 

At the same time, Vietnam has become increasingly attractive for new investors, and local talent is developing rapidly, even as the country has to compete against Singapore, Hong Kong (China) and other regional stars.

In particular, Vietnam’s software industry is poised to become the Silicon Valley of Asia, especially through the aptly named 1.5 billion USD project Silicon City, located just outside Ho Chi Minh City.

Stephanie Jones and Rafael Masters shared the view that indeed, HCM City presents itself as the jewel in the crown of Vietnam’s success story.

They said as Vietnam’s largest and most progressive city, HCM City is the engine of the country’s growth. At a growth rate of 8.5 percent a year, HCM City has been transformed in the last ten years – with plans for a new airport in the pipeline in addition to a mushrooming central business district and a massive growth in waterfront developments.

HCM City is also the epicentre of the start-up scene in Vietnam, where most of Vietnam’s 3,000 start-ups operate. In May 2016, early-stage venture fund 500 startups pledged a further 10 million USD to their Vietnam fund. Other venture capital companies like CyberAgent, Ventures and SeedCom are also active and investing in new firms, the writers added. 

HCM City has even produced one of Southeast Asia’s unicorns – game developer VNG which became the first Vietnamese technology company to hold an IPO in the US in June, and has more than 70 million users from Vietnam, Myanmar, Japan, the Republic of Korea and Malaysia on its chat app called Zalo alone.

Stephanie Jones and Rafael Masters said that HCM City’s start-up scene may involve new and emerging technology, but at its core is a story about people.

Over the past ten years, thousands of young, aspiring Vietnamese entrepreneurs have moved into the city to create their own start-ups – many of which are in developing tech solutions including e-commerce platforms, apps and games.

Coworking spaces and cafes also have sprung up all across the city to meet the demands of a class of entrepreneurs who network frequently and work in small groups without a dedicated office space, they explained. 

The start-up scene owes its success in part due to the strong push by the Vietnamese government. Officials have promised financial support of 90 million USD  to more than 2,000 local hi-tech start-ups, and made plans to set up innovation hubs that provide training programmes, legal consulting and networking activities to connect start-ups with universities and research centres.

They stressed that but the key differentiator that makes Vietnam's start-up scene particularly vibrant is the quality of the Vietnamese people working in that sector.

Vietnamese talent is internationally competitive, increasingly well-educated, mobile and tech-savvy.

Vietnam has a high literacy rate of 94.5 percent and OECD studies have placed Vietnam 17th out of 65 countries on PISA tests. The Government promises to improve the academic qualifications and business capabilities of its workforce seem to be bearing fruit. Education also continues to make up 20 percent of Government spending.

Vietnamese college and university students have been scoring very highly in internationally ranked tests in recent years, offering a pool of skilled labour for prospective entrepreneurs.

Many young Vietnamese are also sent overseas to study and return with grand ideas of starting their own companies. An estimated 21,000 Vietnamese students attended American universities last year, the sixth largest number of foreign students in the US.

Stephanie Jones and Rafael Masters said the students they have encountered in their work in HCM City are smart, bright and spunky.

Unlike developed countries like Singapore, Vietnam is experiencing the dividends of a population boom. 70 percent of the population of Vietnam is under 30, and Vietnamese youths are highly ambitious and internationally-minded, they commented. 

They take ideas like the transport sharing economy Grab and Uber introduced, and try to implement them in a way more suited to the Vietnamese market. 

Young and well-educated Vietnamese born overseas are returning in droves and adding to the pool of talent.

Even though Vietnam is attracting ambitious young executives from all over Asia, many say they find it hard to compete with bright and savvy local talent, according to the article. 

Young Vietnamese are able to focus on building strong start-ups because they also enjoy family support: Vietnamese family units typically consist of three generations living in a single house. Without a pension system, children take care of parents in old age and grandparents provide childcare and support while young parents are out working.

This strong family nucleus has been a source of support and safety net for young Vietnamese executives. They can devote more time and energy to their businesses, secure in the knowledge that they can turn to their parents to manage the household and not worry about childcare.

In this respect, Vietnamese talent with families have a huge advantage over those in other countries, and even over expatiates living on their own in Vietnam, they said. 

All things considered, Vietnam is in a sweet spot now. Its ease of doing business is on par with China and recruitment demand is up 32 percent.

Strong growth is likely to persist, the article said, citing the World Bank’s statistics as saying that Vietnam’s economy could expand at an average of 6.3 percent in the next three years.

With a young, ambitious and business savvy-Vietnamese population, it is not hard to see why, it concluded.

VinaCapital follows up strategy by divesting Vina Square

VinaLand, the real estate arm of VinaCapital, has announced divesting its stake in the Vina Square project located in Ho Chi Minh City.

Vina Square has a total land area of approximately three hectares and was acquired by VinaLand in 2007, when the land was designated as a future development site. 

VinaLand is divesting its entire stake in the project to Tri Duc Real Estate Company Limited, a Vietnamese development company for net cash proceeds of approximately $41.2 million, including the repayment of shareholder loans, resulting in an IRR of 3.3 per cent to VinaLand.

The total valuation is recorded at 0.3 per cent above the June 30, 2017 unaudited net asset value and 13.5 per cent above the unaudited net asset value at the time of VinaLand’s extraordinary meeting in November 2016. Both figures include adjustments for additional investments up to the date of exit.

At the time of this announcement, $41.0 million or 99.5 per cent of the net proceeds have been received by VinaLand. It is expected that the full proceeds will be received by the end of this month.  

Speaking of the transaction, managing director David Blackhall stated that, “This divestment is in accordance with the current policy to divest projects in a controlled and orderly manner, and steady progress has been made with further pipeline disposals.” 

“The proceeds received from this disposal will, in conjunction with collections from earlier disposals including prepayment advances for future pipeline disposals, will be used to cover VinaLand’s commitments on operating costs, capital contributions, and further distributions to shareholders," he said.

AgriTech accelerator for Mekong Sub-region launched

A new agritech accelerator will harness entrepreneurship and technology to transform the Mekong region’s agricultural industry into a leading global supplier of “safe and nutritious food for all”.

The MATCh: The Mekong Agriculture Technology Challenge Startup Accelerator will support startups in agriculture to develop their products, network and learn from industry players, showcase their solutions, and access markets and funding.

It is aimed at innovative early stage agritech startups and traditional agriculture businesses with new, scalable business models in Cambodia, Laos, Myanmar, and Vietnam.

“MATCh is an important initiative, as entrepreneurship and technology are key to enhancing the competitiveness, inclusiveness, and sustainability of the Mekong region’s agricultural industry,” said Mr. San Vanty, Under Secretary of State at Cambodia’s Ministry of Agriculture, Forestry, and Fisheries.

An additional MATCh Market Access Accelerator will help mature international agritech companies to expand into the Mekong region. Participants will receive mentorship and assistance with their expansion plans, including product adaptation, and forge relationships with potential partners and investors in the region.

MATCh will provide awards and prizes to winners of the two accelerators, with awards given for Best Startup, Most Innovative, Biggest Social Impact, and Women’s Leadership. Award winners will be showcased at the 2018 Greater Mekong Sub-region Leaders’ Summit in Hanoi and participate in the Future Food Asia Award Competition in Singapore.

MATCh was launched at the Second Greater Mekong Sub-region Agriculture Ministers’ Meeting (AMM) in Siem Reap, Cambodia. It is the latest in a series of innovation accelerators by the Mekong Business Initiative (MBI), which also pioneered the MIST (Mekong Innovative Startup Tourism) accelerator earlier this year. MBI launched MATCh with funding and support from the Australian Government and the Asian Development Bank.

“By supporting the innovative business models that this program will create, we can promote efficacy enhancing and environmentally-friendly agricultural technologies that also improve farmer livelihoods,” said Mr. Dominic Mellor, Senior Economist at the Asian Development Bank and Head of MBI.

“Future Food Asia, the open innovation platform developed by ID Capital, is partnering with MBI in MATCh because we share a common vision of fostering startup-driven innovations to bring more sustainability in the food system in the Asia-Pacific region,” said Ms. Isabelle Decider, CEO of ID Capital.

The Asian Development Bank and the Australian Government jointly launched the MBI in 2015. It catalyzes private sector development in emerging ASEAN markets, focusing on Cambodia, Laos, Myanmar, and Vietnam. The program aims to improve the business-enabling environment in these four emerging ASEAN markets, with particular focus on business advocacy, alternative finance, and innovation.

Work begins on second quay of Long An Port

Work on the second quay of Long An International Port commenced last week and is scheduled for completion in the third quarter of 2018.

The quay will be 210 meters long and capable of handling 50,000 DWT vessels, raising the total length of quays 1 and 2 to 420 meters.

In addition to the quay and a complete container yard, the port’s investor is improving infrastructure facilities and services to serve import and export of rice, fertilizer, animal feed, iron and steel and other commodities.

Long An International Port is located on the bank of the Soai Rap River in Long An Province’s Can Giuoc District. The project has seven phases with total investment capital of over VND9 trillion (some US$400 million) and will be fully in place in 2023.

The port is developed on an area of 147 hectares with seven quays having a combined length of 2.6 kilometers to handle vessels of 30,000 -70,000 DWT, and five domestic wharfs capable of receiving 2,000 DWT ships.

Phase one of the project is capable of handling 4.8 million tons of loose goods and 700,000 twenty-foot-equivalent units (TEU) a year. The entire port after completion will have a total capacity of 15 million tons of goods and 3.5 million TEUs a year.

Long An International Port is part of the Long An Southeast Asia Port and Trading Center and Urban Area of Can Giuoc District with a total area of 1,935 hectares as approved under Decision No. 362/QD-UBND dated February 02, 2007 of Long An Province People’s Committee.

The whole project requires a total of US$1 billion and is a 50:50 joint venture between Dong Tam Group and VinaCapital Group.

HCMC suspends much-touted bus rapid transit project

The HCMC Department of Transport has announced to suspend the city’s first bus rapid transit (BRT) line which runs along Vo Van Kiet and Mai Chi Tho avenues and develop a high-quality bus route instead.

According to the department’s study on BRT line’s feasibility and efficiency that was submitted to the HCMC government in late August 2017, the BRT line will only be profitable if it goes through crowded residential areas.

The study shows that the number of passengers using BRT in the first year after completion should be some 17,700 a day, much lower than the previous forecast of 24,700. The number of BRT’s potential customers is not higher than that of ordinary bus routes, but a BRT line requires a huge VND3 trillion (nearly US$144 million).

Therefore, the HCMC Department of Transport proposed developing a high-quality bus route instead, which is more suitable to the city’s current infrastructure.

According to the department, a high-quality bus route requires less capital than a BRT line because it does not need an intelligent transport system (ITS), bus ticketing equipment, modern bus stops, hi-tech buses and other complex facilities.

Besides, a high-quality bus route project might be funded by official development assistance (ODA). With the same amount of capital, it would be more cost-effective to develop a high-quality bus route together with a large-scale operation management center than a costly BRT line.

At a meeting held to present the feasibility study of the BRT line, the Urban-Civil Works Construction Investment Management Authority (UCCI) said it had conducted four studies and analyzed the efficiency of the BRT in Hanoi City as well as other cities in South America, Europe and Asia, and found that this transport mode is not suitable to the city’s current conditions.

Wrapping up the meeting, HCMC vice chairman Tran Vinh Tuyen approved the HCMC Department of Transport’s proposal to suspend the BRT project, and said a high-quality bus route would be more efficient and could be upgraded to a BRT line after 5-10 years.

According to the initial plan, the city’s first BRT line stretches 23 kilometers from An Lac Roundabout in Binh Chanh District through districts Binh Tan, 6, 5 and 1 before ending at Cat Lai Intersection in District 2.

The project is forecast to cost nearly US$144 million, with the World Bank lending US$123 million, and is scheduled to be up and running in late 2019.

Tokyo introduces tourism products in HCMC

Representatives of Tokyo, Japan on September 11 introduced new tourism products and services in entertainment, shopping and hotels, and supporting services to travel companies in HCMC.

In the past, tourists found it difficult to look for hotel rooms in Tokyo, so the city has built new hotels with an additional 5,000 guest rooms this year. The number will surge by 2020 as many hotels are under construction.

Tokyo authorities have also established multilingual call centers and tourism information centers so that visitors to the city can easily look for necessary information or book hotel rooms. Information signs are also set up outside to serve visitors.

Japan is among the most-visited destinations for Vietnamese tourists, especially Tokyo, Osaka and Nagoya.

According to the Japan National Tourism Organization (JNTO), the number of Vietnamese tourists to Japan hit 233,000 in 2016, four times higher than in 2012. In the first seven months of this year, Japan welcomed 181,900 Vietnamese arrivals, up 28.6% year-on-year.

At the end of March, the Japan Tourism Agency, JNTO and the Vietnam National Administration of Tourism signed a memorandum of understanding on tourism promotion. Vietnam expects to welcome one million Japanese visitors by 2018 compared to more than 740,000 arrivals last year, and the number of Vietnamese visitors to Japan is expected to reach 500,000, doubling the number in 2016.

Vietnam-AV Show 2017 to be launched on Friday

Vietnam-AV Show 2017, an exhibition on audiovisual equipment, is set to take place from Friday to Sunday this week at the 272 Conference Center in HCMC.

The exhibition is expected to attract more than 25 distributors of high-end audio equipment, home theater systems, and audiovisual and electronics household appliances.

The three-day event features 23 audiovisual rooms which are designed to deliver audio and visual experience to participants. Besides, there are 10 booths displaying audio and visual products and accessories, according to the organizer, Nam Binh Advertising Co Ltd.

The retailer chain Mai Nguyen Luxury Mobile will team up with Japan’s Sony Corporation to set up soundbar home theaters at the event.

Anh Duy Audio, a distributor of audio equipment, will introduce the latest Callas Diva speakers of Opera, an Italian firm specializing in walnut loudspeakers, together with Denon PMA-2500NE amplifiers.

Paramax, another domestic audio brand, will establish standard karaoke rooms using Japan’s F-2000 series speakers which give participants an opportunity to sing songs with fresh effects.

A speaker distributor, Saigon Audiovisual Private Enterprise, will offer AIA Cinema’s 3D Ascendo Immersive Audio systems.

Culture week celebrates ASEAN’s 50th founding anniversary in Mexico

A culture week celebrating the 50th founding anniversary of the Association of Southeast Asian Nations (ASEAN) kicked off in Mexico on September 12.

The event was held by the Chamber of Deputies of Mexico and Embassies of ASEAN members in the country, including Malaysia, Indonesia, the Philippines, Thailand, and Vietnam.

Speaking at the opening ceremony, Victor Giorgana, Head of the Chamber of Deputies' Committee for External Affairs, hailed the significance of the event in boosting the two sides’ relations.

Developing cooperation with ASEAN, especially in trade and investment, is part of Mexico’s market diversification strategy, he added.

At a workshop held as part of the event, ambassadors of ASEAN member states briefed participants on the history of ASEAN, the ASEAN Community, the ASEAN Economic Community, and the bloc’s development plans.

Vietnamese Ambassador Le Linh Lan highlighted the central role of ASEAN in the regional architecture in maintaining peace, stability, prosperity in Asia-Pacific.

The culture week also included art performances, a cuisine festival and a photo exhibition.

Mekong Enterprise II lowers stake in MWG

Mekong Enterprise II Ltd has reduced its ownership at Mobile World Investment Group (MWG) after transferring three million shares at the electronics retail chain operator to other investors, cutting its stake to less than 3%.

According to a notice of the Vietnam Securities Depository, Mekong Enterprise II Ltd has sold MWG shares to a group of investors, including 903,300 shares to Aquila SPC Ltd, one million shares to Wareham Group Ltd, 356,700 shares to IDRIS Ltd, 640,000 shares to Vietnam Holding Limited and 100,000 shares to KB Vietnam Focus Balanced Fund. It has reduced its holding from 11 million shares to eight million shares, or a 2.6% stake.

Norges Bank and Amersham Industries Limited have also transferred around 74,000 and 275,000 shares of FPT Corporation (FPT) to Lloyd George Indian Ocean Master Fund, said the notice.

On the local market, MWG closed the September 11 session at VND111,500 a share, rising 0.9% versus last Friday, when the shares had been sold to Mekong Enterprise II Ltd at VND109,500 each. Mekong Capital, the operator of the fund, is expected to have raised VND328.5 billion from the transaction.

Early this month, Aquila SPC Ltd, Wareham Group Ltd, IDRIS Ltd, Vietnam Holding Limited and KB Vietnam Focus Balanced Fund acquired a total of 936,000 shares of MWG sold by The Genesis Emerging Markets Investment Company and Frontaura Global Frontier Fund LLC.

Launched in 2002 with total capital of US$18.5 million shares, Mekong Enterprise II Ltd is active in the Vietnamese market, focusing on unlisted private companies.

Coal-fired power projects should accompany renewable energy production

Coal-fired thermal power projects with a capacity of 1,000 MW should also be equipped with advanced technologies to generate at least 30MW of renewable energy, said Le Anh Kien, deputy director of the Institute for Tropical Environment.

At a seminar on Vietnam-Taiwan green technology held by the Small and Medium Enterprises Development Support Center 2 (SMEDEC 2) in HCMC on September 11, Kien said Vietnam holds high potential to develop wind, solar and biomass power.

However, renewable energy generation has remained insignificant. Only 4 MW of solar power and 2.4 MW of waste-to-energy have been generated. In addition, the country can produce only 2,400 MW of hydropower, 187 MW of biomass energy and 159 MW of wind power compared to the respective potential capacities of 7,000 MW, 2,000 MW and 8,000 MW.

Kien told the Daily that coal-fired thermal power plants can still burn biomass material alongside coal to generate electricity, which has been applied in many other countries.

Vietnam should issue preferential policies to encourage investors to join in renewable energy development projects such as tax exemption for enterprises implementing such projects and for imported equipment. Besides, the Government should have policies to encourage the Vietnam Electricity Group (EVN) to purchase all power from renewable projects.

He also proposed increasing power prices as the current prices are too low to attract investors. Wind power is being sold at 7.8 U.S. cents per kWh, biomass energy at 5.8 cents, biogas energy 7.18 cents, waste-to-energy 10.05 cents and solar power 9.35 cents.

Samsung continues to look for Vietnam suppliers

The HCMC Department of Industry and Trade is calling on domestic enterprises to participate in an exhibition by Samsung Electronics, which is to take place in HCMC next month to seek suppliers.

Particularly, Samsung is looking for domestic suppliers for 59 kinds of components and accessories that fall into three groups, including motor, tuner and automaton equipment. Enterprises can visit the official website of the HCMC Department of Industry and Trade at www.congthuonghcm.vn to download the list of those components.

This is Samsung’s annual activity to seek Vietnamese firms with the potential to become its suppliers. The company will send experts to factories of potential firms for direct inspections to select the most appropriate partners.

Interested enterprises should submit a registration form to the HCMC Center of Supporting Industries Development (CSID) before 4:00 p.m. on September 15, 2017. For further information, contact My Thinh on 0938.006.608 or email: thinhdtm@gmail.com, or Quang Trung on 0888.109.339 or email: csid.showroom@gmail.com.

Bac Ninh to invest VND570 billion in smart city project

The northern province of Bac Ninh is planning to invest VND570 billion (US$25.3 million) in a smart city data center, the provincial government said on its website.

The provincial Department of Information and Communications will serve as the owner of the project, which will be implemented by the National Institute of Information and Communications Strategy under the Ministry of Information and Communications.

The investor will develop a data center, cloud computing, cyber security solutions, network and software systems.

The project is aimed at building information technology infrastructure as a platform to develop a smart city so that integrated data can be shared. The center is expected to provide necessary information to support the authorities in management and offer smart services for local people and enterprises.

Bac Ninh authorities have asked the Department of Information and Communications to carefully consider the project for its effective operation. The department will have to choose an appropriate investment form to avoid wastefulness and facilitate center users.

Italy offers grant to help study Vietnam’s railway infrastructure upgrade

The Italian Government will offer gratis aid of 295,000 euros for Vietnam to study the possibility of carrying out two railway infrastructure upgrade projects.

Italian ambassador to Vietnam Cecilia Piccioni announced the grant at a meeting on railway cooperation promotion with Deputy Minister of Transport Nguyen Ngoc Dong in Hanoi on September 11. The diplomat said the amount is aimed to realize a memorandum of understanding on infrastructure and transport cooperation between the two countries signed in November last year.

In specifics, Italy will grant 198,000 euros to conduct a study for upgrading the railway, and another 97,000 euros for a study on the railway system development and modernization project.

The two projects will be implemented by the Italian Railway Corporation and Net Engineering Co Ltd.

A representative of the Italian Railway Corporation said the study would pave the way for promoting full cooperation with Vietnam’s railway sector in capital construction, operation and maintenance. Meanwhile, Net Engineering affirmed that it will propose technical and financial solutions suitable to the current conditions of Vietnam’s railways.

Deputy Minister Nguyen Ngoc Dong at the meeting briefed the Italian guests on Vietnam’s 2017 Railway Law which will take effect from July next year, under which the State will be responsible for railway infrastructure development while enterprises are encouraged to provide railway transport services.

Italian contractors should learn about the new railway law to implement the projects successfully, Dong added.

Dong also said his ministry is responsible for finalizing a pre-feasibility study for the North-South express railway project to send to the Government and the National Assembly in 2018.

Vietnam’s railway sector is also supported by financial institutions such as the World Bank (WB), the Japan International Cooperation Agency (JICA) and the Korea International Cooperation Agency (KOICA) to enhance its capacity and build new railroads.

In related news, Vietnam and Brazil on September 11 inked a maritime transport agreement on the occasion of the Vietnam visit by Brazilian Minister of Foreign Relations Aloysio Nunes Ferreira from September 9 to 12.

The agreement is aimed at supporting cargo transport, thus promoting trade cooperation between the two countries.

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