Strengthening national trademark

The National Trademark Program, which focuses on quality, renovation, creativity, and leading capability, intends to promote national images through product brand names.

In global integration, developing a national trademark in the domestic and foreign markets is decisive in competing with foreign products.

The national Trademark Program has carried out activities to promote trademarks and help enterprises improve business management, enhance marketing, and competitiveness. 

International integration and participation in free trade agreements have opened new opportunities for Vietnam’s economy. 

President Tran Dai Quang told enterprises who won the National Trademarks recognition for 2016: “In order to improve competitiveness in international integration, it’s necessary to develop a national trademark. 

It requires efforts of the business community to obtain production goals and improve product quality so we can win both the domestic and overseas markets.”

Vietnamese enterprises have actively engaged in building their brand names, contributing to promoting Vietnam’s trademark. Vu Van Thanh, Deputy Director of Hoa Sen Group said, “The National Trademark Program has generated conditions for enterprises to improve their trademarks. Obtaining the national trademark recognition helps us promote our products in the domestic and overseas markets.”    

In the international market, Vinamilk ranks 20th in the top 300 most dynamic companies in Asia. Trung Nguyen Coffee has over 1,000 facilities in Vietnam and other countries. They have brought Vietnamese products closer to consumers worldwide.

Vietnam's inflation under control

The Consumer Price Index (CPI) of April remained unchanged against last month and was 4.3% more than last year's same period.

The General Statistics Office of Vietnam reported on April 29 that drugs and healthcare services saw the biggest surge of 8.05%. 

Among commodities and services having lower CPI, transport services dropped 1.38% due to increasing petroleum and oil prices. So far this year, inflation has grown 1.62%.

Price increases were marked in seven out of the 11 goods and service groups in the price basket, with the biggest hike reported in medicine and health care services (8.05%), followed by culture, entertainment and tourism and household appliances with the same increase of 0.1%,  and goods and other services (0.08%).

Nguyen Bich Lam, Director General of the General Statistic Office of Vietnam, said inflation has been put under control.

“We’ve made scenarios for increasing CPI and service fees. For example, we anticipated how the price hike of electricity and healthcare services will impact the CPI and the economy then consulted the government for proper management. The government has asked ministries and sectors to control inflation as requested by the National Assembly," Lam said.

Vietnam third most expensive country to buy Starbucks: survey

Vietnam is among the top three most expensive countries to sip a Starbucks, compared to the U.S. coffeehouse chain’s home country, a survey finds.

Financial research group ValuePenguin studied the price of a small, or ‘tall’ as Starbucks names it, cup of latte in 39 countries to pinpoint where the drink is the biggest extravagance.

To evaluate the information, data gathered in the local currency was converted to a dollar value reflective of the purchasing power within each of the countries covered, according to the company.

The study eventually found that Vietnam is among four Southeast Asian countries where a Starbucks latte costs three times more than in the US.

“Southeast Asia is the standout region - where buying a small latte would be akin to paying US$4.70-8.20 in the US, reflecting how Starbucks lattes are marketed as a luxurious indulgence here,” the US research firm said in an email on April 28.

The average cost of a tall latte in the U.S is US$2.75, which ValuePenguin says is “pricier than a regular cup of coffee… but less costly than a meal or an alcoholic drink when ordered out.”

In all 39 countries analyzed by ValuePenguin, the relative cost of a tall latte is higher than in the U.S., and the variation among the markets is significant.

In some countries, a latte hits the wallet only a little harder than in the U.S., particularly in the froth-friendly nations of Australia, the UK, New Zealand, and Canada, where Starbucks represents something less than a big indulgence, the company said in a report.

But stepping up to the Starbucks counter in certain other countries can turn a simple coffee into a far bigger extravagance.

“Nothing matches the luxe indulgence of ordering a latte in Russia, where the tab would feel like spending US$12 for the drink here at home,” the report reads.

“In the other pricier countries for Starbucks, including India, Indonesia, and Thailand, the sticker shock would be more akin to spending US$7 or so at home.”

In Vietnam a latte fetches the purchasing equivalent of US$8.18 in the U.S., falling only behind Indonesia and Russia.

“These seeming splurges underline how inexpensive many other goods and services are in those countries,” the research firm commented.

“With bread, milk, or other staples less costly there than in the U.S., Starbucks seems like a big spend indeed.

“The figures may also explain why in many countries Starbucks is an exotic, status-laden chain--an embodiment, perhaps, of American affluence and indulgence.”

ValuePenguin said the study was conducted based on the most recent market data from 2016 gathered by Euromonitor International, a leading global provider of market research.

Forum discusses developing agricultural products’ labels, brands

Developing chains of agricultural products in tandem with building labels and brand names was the focus of discussion at a forum in the central province of Quang Nam on April 28.

The event was jointly organised by the National Centre for Agriculture Encouragement and the Quang Nam provincial Department of Agriculture and Rural Development.

According to the Department of Processing and Trade of Agricultural Products under the Ministry of Agriculture and Rural Development, Vietnam is among leading agricultural producers in the world.

The agricultural sector has eight products earning over one billion USD from exports, namely coffee, rubber, rice, aquatic products, cashew nuts, peppers, fruits and vegetables, wood and wood products.

Numerous agricultural products have been available at home and abroad with labels and geographical indicators.
However, 90% of Vietnam’s agricultural exports are crude products, resulting in lower values, said Vo Thi Ly, Deputy Director of the Authority.

Besides, over 80% of the nation’s agricultural products are yet to have brands, logos, labels. Most of them are shipped abroad under foreign brand names, Ly added, stressing that it is a major disadvantage for domestic farm produce.

Acting Director of the National Centre for Agriculture Encouragement Tran Van Khoi pointed to the trend in recent years towards the development of agricultural production chains based on connection among farmers, cooperatives and enterprises, and the formation of large zones specialized in key crops. 

However, Vietnam’s agricultural production overall remains small-scaled, limiting the sector’s competitive capacity, according to Khai. 

He noted that while the free trade agreements Vietnam have signed help expand agricultural export markets, they also bring increasing competition.

Khai underlined the strategic need for promoting and increasing competitiveness for Vietnamese agricultural products, including developing brands and securing their foothold on both the domestic and overseas markets.

Participants pointed to difficulties hindering the building of brand names for agricultural products, such as the lack of a master plan to guide localities, enterprises; changing regulation and poor market research.  

The Ministry of Agriculture and Rural Development aims to develop a programme on developing brands for key agricultural products by 2020, with immediate priority given to mangoes, dragon fruits, tea, coffee and tra fish.

New water park opens in Quang Ninh Province

Families are assured of a splashing time at the Typhoon Water Park, offering 12 attractions, including a pool with manmade waves, that opens tomorrow (Apr. 29) at the Sun World Halong Complex in the province of Quang Ninh.

Park manager Parques Reunidos said the park has everything for everyone— play areas for children and relaxing spots for adults.

He said one of the interesting attractions is the 5-foot deep pool with artificial waves.

We built it in such a way that visitors will feel like they are at the beach. The artificial waves switch every 15 minutes, so visitors will experience different waves, he noted.

48-mln-USD projects set to ensure power supply for APEC

Several key power transmission projects, worth a total VND1.1 trillion (US$48.4 million), have been constructed since 2015 to ensure power supply for the Asia-Pacific Economic Cooperation (APEC) meetings in Vietnam this year.

Members of the Electricity of Vietnam (EVN) Group – the Central Power Corporation (EVN CPC), the National Power Transmission Corporation, and Danang Power Co., Ltd – worked together to carry out these projects. 

A 220kV, five 110kV and two medium-voltage transmission lines have been completed to date while the construction of five other 110kV and four medium-voltage lines has been sped up in an attempt to put them into use before August.

The EVN CPC confirmed that electricity will not be cut off at any time in Danang City from October 25 to November 15 and it will ensure the reliability of the system and have backup plans for power supply at APEC events.

Locations for APEC events such as Danang Sun Peninsula Resort, Furama Resort, Pullman Resort, Olalani Resort, Sheraton Hotel, Novotel Hotel, Tien Son Sports Palace, Da Nang City Administration Centre and Danang International Airport will be prioritised for power supply.

Vietnam will host about 200 APEC events across ten major cities, with the biggest being the APEC week in central Danang city in November.

This year marks the second time Vietnam will host the APEC, following the first in 2006.

HCM City sees breakthrough developments

The southern metropolis of Ho Chi Minh City has gained significant socio-economic accomplishments since the liberation of the South and national reunification on April 30, 1975.

Over the past 42 years, Ho Chi Minh City has made remarkable contributions to national building, defence, industrialisation, modernisation, and international integration.

The city was one of few localities in Vietnam to record double-digit growth for many consecutive years from 1991-2010 thanks to the creative implementation of the Party’s guidelines on developing the socialist-oriented market economy.

It recorded annual average growth of 9.6% between 2011 and 2015, 1.66 times higher than the national average.

In 2016, the city achieved economic growth of 8.05 percent. The economic structure was shifted to services and industry-construction, which made up 54.8% and 28.76% of the municipal gross domestic product (GDP) respectively. The agricultural sector only comprised 0.8% of GDP. 

Ho Chi Minh City has long been one of the most attractive foreign direct investment (FDI) destinations. 

In 2016, the city lured US$3.7 billion, raising total FDI to approximately US$41 billion, with 6,485 foreign investment projects.

The FDI sector contributed 23.8% to the city’s GDP.

Per capita GDP increased to US$5,428 in 2016 from US$712 in 1995-1996.

Ho Chi Minh City is considered a bridge connecting the southern region with the south central and Central Highland regions and plays a crucial role for the development of the southern key economic region.

These achievements were attributed to the city’s focus on planning urban areas, industrial and processing parks, and developing transport infrastructure.

The southern economic hub has also made strides in culture, society, education-training, and human resources.

It is one of the leading localities in national universal secondary education.

The healthcare system has been developed with the increasing use of modern technologies in medical examination and treatment.

So far, 54 out of the 56 communes in the city have been recognised as new-style rural areas.

Wood pellet spike in Japan signals potential for Vietnam

New record highs for trade of wood chips from Vietnam are projected for 2017 with China and Japan accounting for 70% of total exports followed by Finland, Sweden and Turkey, reports the Wood Resource Quarterly.

Over the past 15 years, the global trade of wood chips has risen dramatically by almost 75%, mainly because of major expansion of pulp capacity in China. Wood chips, with the exception of Turkey, are used to produce pulp, paper, paperboard and other cellulose-based products.

Turkey is the only country to import wood chips for use in producing medium density fibreboard, which is a wood product with a wide variety of uses that is similar but much denser than plywood or particleboard.

The Chinese demand for wood chips has been further heightened by governmental logging bans in 14 provinces that have forced buyers to source more heavily from surrounding countries including Vietnam, Laos, Cambodia and Myanmar.

In Vietnam, officials estimate that almost 90% of Central Highlands timber has been sold to buyers in China.

The major sources of hardwood chips for the two dominant importers, China and Japan, are Vietnam followed by Australia, Chile and South Africa in descending order of magnitude of the volume of their exports.

However, Vietnam suppliers face constraints going forward, says the Wood Resource Quarterly, as current export volumes are not sustainable.

Past growth of the industry is attributable to the fact that it has been driven by demand from China; it takes low levels of capital, technology, and labour to establish a wood chip factory; and government policies that have facilitated growth through easy factory licensing and wood chip export tax exemptions.

In 2016, analysts point out, that the Vietnam government for the first time levied a tax on wood chip exports, with the aim of conserving the country’s timber resources and reducing exports in 2017 and later years to China.

Meanwhile, the burgeoning demand for wood pellets in Japan is principally due to aggressive energy policy initiatives that have been introduced by the Ministry of Economy, Trade and Industry aimed at reducing the East Asian island nation’s dependence upon traditional fossil fuels as an energy source.

One of the most significant developments along these lines is the recent announcement by the Japanese Environment Ministry that the country intends to construct 43 high-efficiency coal-fired power plants over the next 10 to 12 years.

This robust expansion of the country’s coal-based energy capacity is viewed as a boon for biomass wood pellet producers, as the stringent emissions targets for these new coal power stations will virtually guarantee a need for co-firing with wood pellets.

Vietnam is not currently well-positioned to take advantage of this increased Japanese demand for biomass wood pellets because producers cannot meet the standards for quality, sustainability and reliability that have been outlined by Japanese importers.

Specifically, Japan requires all imported wood pellets to be Forest Management (FM) certified, and Vietnamese wood pellets do not meet these requirements— but could with adequate industry leadership and training.

The Japanese plans to double down on coal-based energy production presents a unique opportunity for forward thinking concerns in the Vietnamese wood pellet export market as demand shows no signs of slowing any time soon.

Conditions are ripe for a long-term trade partnership between Japan and Vietnamese business concerns that offer significant benefits for the mutual benefit of industry participants from both countries.

Petrol prepares for e-voice
     
The General Department of Taxation (GDT) is aiming to apply electronic invoices for petrol products in a bid to enhance the management of petrol station data and prevent tax losses.

Under the plan, tax authorities expect to set up a parallel and synchronised sales management software, which will allow individuals and enterprises to get their e-bills when buying petrol. Sales data will then be transmitted directly to the tax authorities, allowing for thorough management of petrol business operations.

However, since the implementation of electronic invoices for petrol products is likely to be costly, the plan is not currently feasible, according to Nguyen Van Phung, director of the Large Enterprise Department under the GDT.

He added that it was impossible to force enterprises to spend such a large amount of money within a short time without calculating the business efficiency of the plan. Therefore, the GDT is working on a pilot programme to implement the scheme on a trial basis.

According to Dang Ngoc Minh, the GDT’s deputy general director, tax authorities at all levels and petrol businesses must start to study and apply scientific and technological applications, preparing the necessary equipment and legal basis for electronic invoices in the sale of petrol products.

"Petrol dealers are encouraged to follow the plan, however, the GDT will make it mandatory for all petrol businesses in the future," Minh said.

The GDT previously stamped all petrol stations nationwide as a measure to better manage petrol business operations, which has shown significant improvement. However, according to a representative from the department, this is still just a temporary solution.

Many argue that another solution is to encourage consumers to require paper invoices whenever they buy petrol. Nonetheless, Phung said, the current process of issuing bills at petrol stations is very complex and difficult to manage as few customers demand bills after they purchase petrol.

Most of the customers use motorcycles, and each purchase ranges from VND40,000-50,000 (US$1.7-2), not worth waiting a long time for the bill. Therefore, many petrol stations collect those bills and illegally sell them to other buyers who need bills but do not actually make purchases, Phung said. 

IML Technology Viet Nam project inaugurated
     
IML Technology Viet Nam Co Ltd on Wednesday officially inaugurated its packaging production plant in the Dinh Vu Industrial Zone (Deep C HP I) in northern Hai Phong Port City.

IML Technology Viet Nam Co Ltd’s project, with total investment capital of US$3 million, is wholly foreign invested and built on 14,857 sq.m of land.

The project focuses on the production of packaging material made of plastic and fibre for lubricants, chemicals and other purposes, specialising in In-Mold Labelling technology.

In a stable production year, the plant supplies 6,500 tonnes of products and can hire up to 300 workers.

IML Viet Nam is a subsidiary of IML Technology Indonesia, a leading company in In-Mold Labelling technology. Its clients include leading names in the lubricant, chemical and cosmetic industries.

Dong Nai aims to save pig farming industry
     
The Ministry of Agriculture and Rural Development and the Dong Nai’s administration on Thursday discussed measures to rescue the southern province’s pig-farming industry following the precipitous drop in the prices of live pigs.

The province has around 1.7 million pigs waiting to enter the market even as the price of live pigs has declined to a record low of VND22,000-24,000 (US$0.97-1.1) per kilogramme, Phan Minh Bau, deputy director of the province Department of Agriculture and Rural Development, said.

The price has gone down nearly VND30,000 since last year, he said.

China has stopped buying live pigs from Viet Nam since last November, and it is hurting farmers since they had relied greatly on that market.

While pig breeders lose VND7,000-11,000 per kilogramme, customers fork out VND80,000 for a kilogramme of pork at wet markets and VND100,000 at supermarkets.

Bau blamed this on intermediaries, processors and distributors, saying that between leaving farms and reaching customers pig prices increase by VND44,000-64,000 per kilogramme.

Nguyen Tri Cong, chairman of the Dong Nai Livestock Association, said authorities should allow qualified co-operatives to slaughter pigs and sell them directly to workers at industrial parks at 40 per cent lower prices.

It would still be profitable if pork is sold at VND40,000-50,000, he said.

Deputy Agriculture Minister Vu Van Tam welcomed the suggestion and promised his ministry would work with its Chinese counterpart to resume exports to the neighbouring country.

On the same day, Agriculture Minister Nguyen Xuan Cuong sent a communication to all cities and provinces that calls on them to persuade pig slaughterhouses and processors to keep buying pigs and keep them in cold storage or process the meat.

He has called on companies making pig feed and veterinary medicines to reduce their prices to help farmers in this time of difficulty.

The ministry called on local authorities to strengthen links between farmers, co-operatives and enterprises.

Firms and co-operatives should play key roles in monitoring product quality and food safety, and ensure demand for and supply of animal husbandry products are balanced.

Ha Nam aims to attract 150 projects in four years

The northern province of Ha Nam aims to lure 130-150 projects to its industrial parks (IP) in 2017-2020, with total investment of up to 50 trillion VND (2.19 billion USD), including 1.5-1.8 billion USD in foreign investment.

Through the projects, Ha Nam hopes to create jobs for about 25,000 labourers, raising the total workers in local industrial parks to about 75,000.

The province targets about 60 trillion VND (2.64 billion USD) in industrial production in the parks in 2020, accounting for 75 percent of the province’s total, as well as the full occupancy of Dong Van II, Chau Son, Hoa Mac and Dong Van III support industry park.

In 2020, it is hoped local IPs will pay 3.1 trillion VND (13.6 million USD) to the State budget.

Currently, the province is prioritising projects in support industry and processing-manufacturing industry with advanced and environmentally-friendly technology.

To fulfill the goals, Ha Nam is mobilising resources to hasten infrastructure construction in the IPs, offering clear ground for investment projects, while speeding up the building and upgrade of transport system linking the IPs with national roads, airports and seaports.

The province has also diversified methods of investment promotion, introduced the local investment environment to foreign firms, improved its infrastructure system and human resources quality, and sped up administrative reform.

The locality will also set up a database on enterprises in the support industry to foster business connectivity.

According to Tran Xuan Duong, head of the Management Board of Ha Nam IPs, by the end of the first quarter of 2017, local IPs hosted 262 valid projects, including 160 foreign-invested ones worth over 2 billion USD, along with 102 domestic ones with total investment of more than 14.3 trillion VND (62 million USD).
     
Coal export posts surge
     
The country’s total coal export volume in the year’s first four months posted a seven times surge compared with the same period last year to reach 504,663 tonnes.

The General Department of Customs said Viet Nam earned US$79.4 million from coal exports in the January-April period or a 13 times increase in comparison with the corresponding period last year.

Average coal export price in the four months also increased to $157 per tonne, much higher than the $79 per tonne in the first four months of 2016.

Notably, Viet Nam’s coal export markets have witnessed changes, with China no longer the country’s largest importer.

The department said Viet Nam’s main coal importers in the period were Japan, Indonesia, Taiwan, Malaysia and South Korea. 

PMI dropped slightly in April
     
The Purchasing Managers’ Index (PMI) of Viet Nam dipped to 54.1 in April, a slight decline from March’s 22-month high of 54.6, reported Nikkei on Wednesday.

A significant increase of new orders, especially from abroad, helped improve output, employment and purchasing activities in Viet Nam’s manufacturing sector during April.

Meanwhile, there were signs of downward inflationary pressures, with input costs and output prices increasing at the slowest paces in six months.

The growth rate of new export orders has also quickened for three successive months.

The survey said that the expansion in both new business and new export orders was due to rising demand from customers.

The number of new orders has increased continuously since December 2015, with the growth in workload leading manufacturers to increase production in April.

The rise in production allowed firms to complete outstanding business despite the rise in new orders, with work backlogs falling for the first time since the end of 2016. Stocks of finished goods also decreased.

Employment also increased for the 13th successive month as firms responded to new order growth. The rate of job creation was slower, but remained solid.

The rise in new jobs continued to impact the purchasing activity of Viet Nam’s manufacturers. The swift expansion contributed to a 10th successive monthly rise in stocks of purchases. Inventories in anticipation of further new order growth were increased as well.

Higher demand for inputs encouraged suppliers to increase their prices during April, leading to another monthly rise in input costs. Prices of some goods from China also rose. However, the rate of cost inflation eased to the weakest point since last October. Output prices also rose at the slowest pace in six months as charges increased slightly.

Manufacturers reported that delivery duration lengthened for the third successive month, partly due to raw material shortages.

In addition, the latest deterioration in vendor performance was the most marked since January 2016.

The survey complier IHS Markit’s representative Andrew Harker said that “A record rise in exports was the key highlight from the latest Viet Nam Manufacturing PMI survey as firms once again displayed a good ability to secure new work in international markets. This success fed through to improvements throughout the sector, with production, employment and purchasing activity all rising solidly in April. The manufacturing sector therefore remains a star performer in Viet Nam at the start of Q2.”
     
Strong growth in labour demand and supply in Q1

Recruitment demand for mid- and senior-level staff rose by 73 percent in the first quarter compared to the same period last year, according to a report from Navigos Search, an executive search service in Vietnam.

The top five fields looking to fill more executive jobs are manufacturing, IT, consumer goods and retail, banking and finance, and business services.

For the first time, the business service industry appeared in the top five for executive positions, with the highest demand in financial advisory, management advisory, promotion, advertising, and education.

In the manufacturing industry, industrial construction and civil construction categories occupied the largest portions, followed by electricity and electronics.

The highest demand in the consumer goods industry was from F&B (food and beverages) and fashion and cosmetics.

The recruitment demand for IT developers and engineers skilled in embedded software increased significantly. At many companies, demand doubled compared to last year.

However, the supply of qualified and experienced developers and IT engineers in Vietnam still did not meet demand.

Many companies had to change their recruitment process because of demand for employees who have full working proficiency in English.

Previously, companies put technical skills as a priority, but they now test English ability first to eliminate candidates and then provide further technical training for those who pass the English test.

The online recruitment website Vietnamworks said in its latest report that both recruitment demand and labour supply jumped in the first quarter of the year.

Recruitment demand in the first quarter climbed 23 percent year-on-year, while labour supply rose 38 per cent year-on-year.

In the first quarter, the top five industries with the highest growth in recruitment demand were electricity/electronics with an increase of 67 percent; executive officers and managers with 104 percent; construction with 46 percent; PR and advertising with 35 percent; and customer services with 51 percent.

As for labour supply, the highest number of job applications belonged to education, electricity/electronics, executive officers and managers, architecture/interior design and customer services.

During the period, the IT industry led recruitment demand, followed by administrative/secretarial, accountants, customer services, PR/advertising, manufacturing, architecture/interior design, construction, marketing and sales.

HCM City and Hanoi were the two hottest locations for recruitment demand in the country, with Binh Duong province, Da Nang and Bac Ninh province rounding out the top five.

The administrative/secretarial industry had the highest competition rate with 1/66, meaning that one candidate has to compete with 66 others for a job.

The second position belonged to accountants with a 1/61 ratio. The remaining top five were import/export (1/56 rate), manufacturing (1/51) and health service/biotechnology (1/47).

Information in the report was based on data sets collected from posted jobs and job applications on www.vietnamworks.com.

Vietnam to chop pork imports in mission to save pig farmers' bacon

Vietnam plans to cut pork imports and expand export markets for the meat as part of an unprecedented nationwide campaign to rescue pig farmers, the government said.

Domestic prices have halved since late 2016, hitting VND23,000-25,000 (around US$1) per kilogram in recent weeks. China, the world's biggest pork consumer, recently stopped imports of live pigs across its border with Vietnam, sending prices plunging to record lows, the Ministry of Industry and Trade said last week.

In May 2016, the ministry warned of increasing illegal live pig exports to China via sub-border gates and paths.

"Farmers have been expanding their herds for export to China despite warnings from ministry, and this has caused the pork supplies to exceed domestic demand," the ministry said in a statement on April 28.

Vietnam's pig herd rose nearly 5% last year from 2015 to an estimated 29.08 million, and by the end of March 2017 the number had edged up by at least 1.5%, based on government data.

The trade ministry estimates that Vietnam will face a surplus of 200,000 tons of pork this year. It said it would ask the agriculture ministry to help expand exports of live pigs and pork to China, the Philippines and Singapore.

Vietnam imported nearly 7,800 tons of pork between January 1 and March 15, up 15.8% from on-year, after importing 39,400 tons in the whole of 2016, Vietnam Customs said. 

Deputy Prime Minister Trinh Dinh Dung has agreed to put a ban on the import for re-export of pork and frozen pork by-products via sub-border gates, the government said in a statement on April 28 following a meeting to discuss the pork surplus.

The trade ministry will tighten control of pork imports to keep it from rising, the agriculture ministry said.

Agriculture Minister Nguyen Xuan Cuong has appealed to Vietnamese consumers to prioritize domestic pork.

Officials from the Ministry of Defense and Ministry of Public Security said the army and the police were ready to help the farmers out by consuming more pork, the government statement said.

The government has asked the central bank to extend loan repayments for farmers and companies involved in the pork trade.

In response, Vietnamese lender Lien Viet Post Bank is offering one-year loans for farmers and pork processors at 2% below market rates, an executive from the bank said on May 1.

Authorities in major pork producer Dong Nai Province have launched a program to buy pork directly from farmers at higher prices and sell to consumers at prices below market value, the provincial Agriculture Department said on Sunday. 

4M CBU vehicle imports total 35,000

The General Statistics Office (GSO) has estimated that Vietnam imported some 35,000 completely-built-up (CBU) motor vehicles of all types in the first four months of this year, an increase of 19.7 per cent year-on-year.
CBU imports in April totaled 8,000 worth $200 million, down 3,000 units but up $20 million in value.
Despite CBU imports rising nearly 20 per cent in the first four months, their value was down 5.7 per cent year-on-year, to $688 million.
In the first three months of the year, the volume of cars of less than nine seats imported from ASEAN countries totaled 14,460 units, up 67.6 per cent, the General Department of Customs reported previously. CBU units from Thailand totaled 10,050, up 28.8 per cent, and from Indonesia 4,400 units.
Industry experts predict that motor cars imported from Thailand and Indonesia will continue to increase in the near term because of commitments Vietnam has made under the ASEAN Trade in Goods Agreement (ATIGA), with taxes on CBU imports to fall to 0 per cent in 2018 compared to 30 per cent currently.
Sales of vehicles of less than nine seats this year are expected to fall 7-10 per cent as many potential buyers put off their purchase in anticipation of the 0 per cent tax rate being applied next year.
Imports of auto parts and accessories in the first four months increased significantly. In April, Vietnam is estimated to have spent $320 million on importing parts and accessories, bringing the total amount in the first four months to $1.15 billion.
The country therefore spent nearly $1.84 billion in the first four months on importing CBU motor vehicles and automobile parts and accessories, up 3.9 per cent year-on-year.    
     
Vietinbank Q1 profit at $89.7mn

A surge in risk provision expenses of 43 per cent year-on-year resulted in Vietinbank’s after-tax profit recording modest growth of just 6 per cent year-on-year to VND2.04 trillion ($89.7 million) in the first quarter, the bank’s consolidated financial statement for the period shows.
As at March 31, Vietinbank’s total assets stood at VND987.4 trillion ($43.4 billion), up 4 per cent year-on-year. Total customer lending rose 5.4 per cent to VND690.3 trillion ($30.36 billion) and customer deposits 1.7 per cent to VND666.3 trillion ($29.3 billion).
Its bad debt ratio went up from 1.02 per cent as at the end of 2016 to 1.13 per cent as at March 31. Total debts in Group 3, 4 and 5 - substandard debt, doubtful debt and potentially irrecoverable debt - increased VND1.17 trillion ($51.5 million) in the quarter to VND7.92 trillion ($348.3 million).
Net profit from operating activities before credit provision expenses saw strong growth of 20 per cent year-on-year to VND4.61 trillion ($202.7 million). However, due to the 43 per cent year-on-year increase in credit provision expenses, the bank’s after-tax profit came in at only VND2.04 trillion ($89.7 million), up 6 per cent year-on-year and equivalent to 29 per cent of the annual plan.
Within the bank’s revenue structure, interest income rose 15 per cent year-on-year to VND6.16 trillion ($270.9 million), net profit from foreign currency trading surged 20 per cent, and services and securities trading both increased 36 per cent.
On top of that, net profit from other activities rose 64 per cent year-on-year from VND400 billion ($17.6 million) in the first quarter of 2016 to VND655 billion ($28.8 million) as at March 31. Only securities investment activities saw a loss, of nearly VND18 billion ($791,640), against a profit of VND31.5 billion ($1.4 million) a year ago.
During the bank’s annual general meeting (AGM) last month, CEO Le Duc Tho said the bank would improve its super-micro customer and small- and medium-sized enterprise segments this year.
Vietinbank expects to increase its total assets by 14 per cent year-on-year in 2017 to more than VND1,086 trillion ($47.84 billion), raise its pre-tax profit by 3 per cent to VND8.8 trillion ($387 million) and pay a 5-7 per cent dividend.
Vietinbank has not yet completed its acquisition of PG Bank, as the two sides have not finished all necessary procedures to obtain approval from authorities. Chairman Nguyen Van Thang told the AGM that all documents relating to the merger of the two banks were submitted to the central bank in 2016.
After reviewing the documents, the central bank asked Vietinbank to review and update the result of an assessment of PG Bank’s share price and re-calculate and discuss the conversion ratio between the two banks’ shares, Mr. Thang said. Vietinbank has engaged auditors Deloitte Vietnam to re-assess the price of PG Bank’s shares and re-calculate the ratio for converting PG Bank shares into Vietinbank shares, he said, adding that the two banks are in talks to finalize and submit the results to the central bank.
Under the previous agreement that was approved by the shareholders of the two banks in 2015, the ratio was set at 1:0.9, with each PG Bank share equal to 0.9 Vietinbank shares.
Based on that ratio, Vietinbank would issue an additional 270 million shares in exchange for 300 million PG Bank shares. Another 30 million shares would be issued to Vietinbank’s current shareholders.

BIDV's Q1 profit at $80mn, bad debts at 2.14%

BIDV’s after-tax profit rose 10 per cent year-on-year to VND1.82 trillion ($80 million) in the first quarter of this year while its bad debts increased slightly to 2.14 per cent, the bank’s consolidated financial statement for the period shows.
As at March 31, its total assets were up 2 per cent to VND1,026 trillion ($45.1 billion). Customer lending rose 4.7 per cent to VND747 trillion ($32.85 billion) and deposits 5 per cent to VND762.4 trillion ($33.53 billion).
Net profit from operating activities stood at VND4.6 trillion ($202.3 million), equivalent to 114 per cent of the amount a year ago. Risk provision costs surged 18 per cent year-on-year to VND2.35 trillion ($103.35 million). After-tax profit, therefore, came in at VND1.82 trillion ($80 million), up 10 per cent year-on-year.
Within a 20.7 per cent year-on-year rise in interest income from VND5.64 trillion ($248 million) to VND6.8 trillion ($299 million), foreign currency trading was up 36 per cent to VND122.4 billion ($5.4 million) while securities trading rose 28.4 per cent to VND104 billion ($4.6 million). Income from services, meanwhile, increased 14 per cent year-on-year to VND574 billion ($25.2 million).
Notably, only securities investment activities continued to record losses, of VND67 billion ($2.95 million), a 56 per cent rise compared to VND43 billion ($1.9 million) in the first quarter of last year.
Its bad debt ratio rose from 1.99 per cent as at the end of 2016 to 2.14 per cent at the close of the first quarter. Total debts from Group 3 to Group 5 (sub-standard debts, doubtful debts, and potentially irrecoverable debts) increased by VND1.8 trillion ($79 million) from VND14.4 trillion ($633.3 million) as at December 31 to VND16.25 trillion ($714.7 million) as at March 31.
During the bank’s annual general meeting on April 22, it secured shareholders’ approval for its plan to pay a 7 per cent cash dividend for 2016, to be paid in the second quarter.
With the State, via the central bank, holding a stake of up to 95.28 per cent in BIDV, the Ministry of Finance is expected to receive more than VND2.2 trillion ($96.8 million) in cash from the dividend payout. Last year, BIDV paid an 8.5 per cent cash dividend to shareholders, with the State receiving VND2.7 trillion ($118.7 million).
According to its plan, BIDV will increase its charter capital from the current VND34.2 trillion ($1.5 billion) to VN38.6 trillion ($1.7 billion) during this year, in three stages.
Last month, Prime Minister Nguyen Xuan Phuc asked BIDV to continue its pioneering role in supporting business investment abroad, especially in Laos and Cambodia, and becoming a leading commercial bank in the region.
He urged the bank to engage in the reform of credit institutions, whose focus is settling bad debts and banks with poor performance, as the largest joint stock commercial bank in the country. 

At the same time, the bank should continue renovating and improving its financial management, operational effectiveness, and competitiveness, thus entering the list of the Top 25 largest commercial banks in ASEAN. 

NCB looks to foreign investors to double capital

The Hanoi-based National Citizen Bank (NCB), one of the smaller lenders in Vietnam, is looking for injections of capital from foreign investors to double its registered capital to VND6.01 trillion ($264.7 million) next year, its annual general meeting last month heard.
This year the bank will focus on improving its business model, enhancing its risk management capacity, and expanding its customer and partner ecosystems. It will select foreign strategic investors among its partners that are interested in adding VND3 trillion ($131.9 million) to its charter capital.
The bank’s net profit from operating activities is expected to reach VND350 billion ($15.4 million) this year, a 60 per cent increase against 2016, while its bad debt ratio is to be kept at less than 3 per cent. The State Bank of Vietnam (SBV) has approved the bank’s plan to open six more transaction points.
Last year, it successfully implemented changes to its core banking system, which is a prerequisite for modernization. The system has helped the bank improve its ability to offer multiple services, simplifying and closely controlling professionals as well as managing customers’ information. It has oriented towards a strategy of becoming a friendly financial consultant that accompanies individual customers and businesses and provides products for each particular customer. It has continued to improve its operational model as well as diversify its loan portfolio and mobilization to ensure reasonable, stable, safe and effective costs.
Its latest financial report shows that total assets were VND70 trillion ($3.1 billion) as at the end of 2016, for growth of 43 per cent against 2015. Capital mobilization and lending also recorded high growth, hitting over VND18.5 trillion ($813.26 million) and VND8.9 trillion ($391.24 million), respectively.
2016 revenue totaled VND211 billion ($9.3 million); 91 per cent higher than in 2015. Net profit was VND10.84 billion ($480,000), up 67 per cent. The quality of its balance sheet improved and the ratio of bad debts was less than 3 per cent.
Ms. Nguyen Thi Mai, a member of NCB’s board and its Director of Finance, said the bank had held talks with a number of partners from Japan and South Korea that have expressed interest in becoming strategic investors.
According to independent board member Mr. Le Xuan Nghia, the ambitious capital hike plan is feasible and the bank hopes to find suitable strategic partners this year.
NCB has signed a deal with a large US bank, which will advise it on finding strategic shareholders, Mr. Nghia said, adding that four or five foreign firms have conducted due diligence.
The Hanoi Stock Exchange-listed NCB, formerly known as Navibank, was once identified as one of the weakest banks in Vietnam and is still in the middle of a restructuring plan.
The Vietnamese Government curbs foreign holdings in a local bank at 30 per cent. A foreign strategic investor is allowed to own up to 20 per cent.

4M budget deficit at $884 million

State budget revenue and spending in the first four months of this year are estimated at VND316.7 trillion ($13.9 billion) and VND336.8 trillion ($14.8 billion), respectively, and equal to 26.1 per cent and 24.2 per cent of the annual plan, according to figures from the General Statistics Office (GSO).
Domestic revenue reached VND253.8 trillion ($11.16 billion), with VND13 trillion ($571.6 million) from crude oil and VND49.9 trillion ($2.2 billion) from import-export activities.
Land use fees totaled VND29.5 trillion ($1.3 billion), personal income tax VND26.2 trillion ($1.15 billion), industrial and commercial tax from the non-State sector VND52.1 trillion ($2.3 billion) and from foreign direct investment enterprises (excluding crude oil) VND47.3 trillion ($2.1 billion), environmental tax VND9.5 trillion ($417.7 million), and taxes from State-owned enterprises VND49.4 trillion ($2.17 billion).
Regular expenditures were VND246.7 trillion ($10.85 billion), interest payments on debt VND31.6 trillion ($1.4 billion), and investment in infrastructure development VND57.8 trillion ($2.54 billion).
Original debt repayment as at April 15 was estimated at VND54 trillion ($2.37 billion), equal to 33 per cent of the annual plan.
The budget deficit during the first four months therefore came in at VND20.1 trillion ($884 million); the lowest in recent years. The budget deficit last year was nearly VND192 trillion ($8.4 billion).
Prime Minister Nguyen Xuan Phuc recently approved a medium-term debt management program for the 2016-2018 period, with a target of limiting public debt at no more than 65 per cent of GDP, government debt at 54 per cent of GDP, and national foreign debt at 50 per cent of GDP.
The overall objective of the program is to seek loans at appropriate costs and risk levels to meet the need for balancing the State budget and socioeconomic development in each particular period. Loans must be allocated and used for the right purposes to ensure repayments.
The program sets a specific goal for gradually reducing domestic and foreign borrowings to bridge the State budget deficit. The deficit was set at no more than 5.4 per cent of GDP in 2016, 3.38 per cent in 2017, and 3.3 per cent in 2018.
Government borrowings to fund the State budget deficit for the three-year period are around VND606.4 trillion ($26.7 billion): VND247.2 trillion ($10.86 billion) in 2016, VND172.3 trillion ($7.6 billion) in 2017, and VND186.9 trillion ($8.2 billion) in 2018.
Borrowings for repayments of the principal of the State budget debt are VND414.4 trillion ($18.2 billion), with VND204.4 trillion ($9 billion) to be raised in 2016, VND144 trillion ($6.3 billion) in 2017, and VND138 trillion ($6.1 billion) in 2018. The new loans for annual principal repayment is decided by the National Assembly (NA) based on a report from the government.
Arrangements for foreign loans for re-lending are some VND118.4 trillion ($5.2 billion), including about VND32 trillion ($1.4 billion) in 2016, VND42.4 trillion ($1.86 billion) in 2017, and VND44 trillion ($1.94 billion) in 2018.

HCMC townhouse/villa segment sees high Q1 growth

The Ho Chi Minh City market received a primary supply of around 3,500 units from 50 new projects in the first three months of this year, including 1,200 villas and 2,300 townhouses. The new supply was up 62 per cent quarter-on-quarter, with more than 500 units from five villas and townhouses entering the market, according to the latest Vietnam Quarterly Knowledge Report in Q1/2017 released by Collier International.
The transaction rate in the segment reached 1,000 units, up 6 per cent quarter-on-quarter. Projects with completed built-in infrastructure and utilities developed by reputable developers have a sales rate of up to 90 per cent.
In the secondary market, sale prices increased by between 1.5 and 3 per cent quarter-on-quarter, depending on the project’s location. Prices are expected to continue increasing due to improved buyer demand and psychology.
The second quarter will see the arrival of 16 new projects, with most supply coming from the eastern and southern areas of the city, in which District 9 will lead, accounting for 35 per cent with about 900 units.
Collier International commented that in the past two years, districts in the eastern area of the city led the supply of real estate attached to land. Infrastructure development and rapid urbanization have created investor confidence in the area. Many people have been looking to buy townhouses with an average land area of 90-150 sq m. These customers prefer real estate products with an average land area of less than VND6 billion ($263,000) with internal facilities, good security, and convenient access to the city center.
Mr. Vo Van Anh Tuan, Deputy General Director of the Thang Long Real Estate JSC, said that the eastern area has been attractive not only to investors but also to buyers.
The area’s real estate benefited from synchronous infrastructure development, convenient transport links with the Long Thanh - Dau Giay Expressway, the upcoming urban railway line, and new bridges being built. The expansion of National Highway No.13 from Thu Duc to southern provinces and the central highlands will create uninterrupted conditions for the city’s northeastern gateway.
Rapid infrastructure development has also significantly cut travel times from suburbs to the city center and encouraged customers to purchase houses in coastal projects.
Contrary to the optimistic situation in townhouses and villas, apartment trade fell 50 per cent in the first quarter against the previous quarter, with 6,000 successful transactions. The number of apartments for sale fell 40 per cent, to around 4,000.
Most new supply comes from subsequent sale openings of existing projects. Eastern and southern areas of the city continue to lead in supply thanks to strong growing potential from major infrastructure development projects and large land reserves.
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR