Salt prices soar, supply dwindles     

Domestic salt prices have been on the rise since the beginning of March, and many salt farmers have expressed their dissatisfaction after running out of salt during the price hike.

In southern Bac Lieu Province, the current buying price for salt has increased by 100 per cent from the beginning of this year’s salt harvest. In particular, black salt is selling at VND700 to VND900 (US$0.03 to $0.04) per kilogramme and regular salt at VND1,200 to VND1,300 per kilogramme, as compared to the VND500 to VND600 and VND250 to VND500 at the same time last year, respectively.

Nguyen Hoang Thua, deputy chairman of the Doanh Dien Hamlet Salt Co-operative in Bac Lieu Province, reported that salt inventories at the co-operative and many other farms had been cleared. He also stated that despite the high demand and price, farmers were still not making much profit due to low productivity.

According to Vo Hoang Nghiep, a salt farmer from Dong Hai District, Bac Lieu Province, the initial low price at the harvest’s beginning was too unappealing for farmers to produce a larger amount.

Another reason for decreased salt supply this year is the large amount of residual inventory from last harvest, which caused salt farmers to convert their salt farms to aquacultural farms, said Duong Chi Thanh, Deputy Head of Division at Bac Lieu provincial Department of Agriculture and Rural Development.

Unfavourable weather conditions, such as a prolonged rainy season, further decreased supply by shortening harvesting time and limiting the coastal areas reserved for sea salt farming by 50 per cent compared to last year.

On estimate in Bac Lieu Province alone, the 2016 to 2017 salt harvest spanned only 1,700 hectares instead of the usual 2,300 hectares. Output is down by 30 per cent from the 2015 to 2016 harvest, currently at more than 165,00 tonnes.

Long An seeks to attract investors to its industrial zones     

Industrial zones and complexes are central to socio-economic development and attracting investors, the Long An Province Department of Industry and Trade has said.

They account for half of the Cuu Long (Mekong) Delta province’s $4 billion annual trade, it said in a report.

Long An, which neighbours HCM City, has 28 industrial zones (IZs) and a similar number of industrial complexes (ICs), some operational and others under construction.

The 25 that are operational have attracted over 1,000 domestic and foreign projects worth over US$5 billion.

Phan Nhan Duy, director of the province’s Department of Natural Resource and Environment, said the number of industrial zones and complexes have kept increasing in the province, and the focus is now on quality instead of quantity.

The province is now soliciting investment in them, he said.

Thai Hoa Industrial Zone in the Duc Hoa III Industrial Zone, for instance, offers incentives such as tax holidays and flexible land leasing policies to attract high-tech companies. To be invested since 2014, the zone now has attracted over 80 foreign and domestic investors.

With an area of over 100ha, the zone is planned to become a modern industrial zone in the province. It has been now an ideal destination for foreign and domestic investors to have plant here and then export their goods to many neigbouring markets of Laos, Thailand and Cambodia.

Truong Van Trieu, head of the Long An industrial zones management, said many other IZs too are striving to offer the best incentives and facilities to investors.

But projects in the zones should be environment-friendly, he underlined.

The province does not welcome projects that harm to the environment, he said.

Long An has the highest economic growth rate of all provinces in the delta. It has good transport infrastructure and borders Cambodia.

Its average economic growth in the 2012-20 period is estimated at 13 per cent a year. 

Italian businesses invited to VN’s largest food expo     

Vietnam Food Expo 2017, the largest show of the country’s food industry, was introduced to businesses and entrepreneurs in Rome on Thursday.

The event was organised by the Vietnamese Embassy in Italy and Lazio region’s trade promotion agency Lazio Innova at the agency headquarters in Rome.

Speaking at the event, Bui Vuong Anh, trade counsellor at the Vietnamese Embassy in Italy, said the fair, which is slated to run in HCM City from November 15 to 18, is a national-level trade promotion activity that specialises in the agro-fishery and food processing sectors.

Ilaria Turatti, head of Turatti Pacific Co. Ltd., a food processing company that operates in Viet Nam, shared her experience of investing in the Southeast Asian country.

Businesses that attended the event expressed interest in the Vietnamese market, which they consider a gateway to the Asia-Pacific region.

Last year, Italy, as the Country of Honour at Vietnam Food Expo 2016, had 40 stalls that showcased local specialties and food processing machinery.

In an interview with the Vietnam News Agency, Vương Anh said Vietnamese firms and their Italian counterparts from Lazio have been working together to develop distribution channels and products for wholesale markets.

An agreement on establishing twinning relations between Ha Noi and Lazio is expected to be signed this year, he added.

Business investments rise strongly in HCM City     

HCM City attracted US$1.37 billion worth of foreign direct investment in the first five months of this year, a year-on-year increase of 45.8 percent, according to the Department of Planning and Investment.

Authorities issued investment certificates to 283 new projects worth $342 million, while 81 existing projects increased their investment by $287 million.

The city also approved 775 M&A deals worth $742 million.

The processing and manufacturing industry attracted the biggest sum of nearly $123 million, followed by wholesale and retail, automobile and motorcycle repair, information and communications, and real estate.

Besides, 15,500 local companies were established in the period with a combined capital of nearly VND193 trillion (S$8.53 billion), increases of 10.4 per cent and 54.2 per cent year-on-year, the department said.

Over 22,000 others registered to increase their capital by a combined VND259.8 trillion.

Together, local investment rose by 2.4-fold to over VND453 trillion.

The business sector is expected to grow faster during the rest of this year since authorities have been making intensive efforts to improve the business environment, the department said. 

VN promises incentive to Koreans     

South Korean investors in the electronics industry in Viet Nam will receive many incentives as part of the Government’s growing focus on this field for the country’s industrial development, officials told a conference held on Thursday in Seoul.

The conference was held by Korea Trade-Investment Promotion Agency (Kotra) and Viet Nam Trade Promotion Agency (Vietrade), in coordination with the Vietnamese Embassy in South Korea. Its aim was to promote cooperation between the two countries in the electronic and mechanical industries and to introduce the investment advantages for South Korean companies in Viet Nam.

Sun Seok-gi, deputy chairman of Kotra, praised Viet Nam for supporting firms in taking opportunities offered by the bilateral trade agreement which came into force at the end of 2015. He said that the conference provided an opportunity for participants to address difficulties encountered by firms and suggest measures to promote cooperation.

Vietnamese Ambassador to South Korea Nguyen Vu Tu said the Government of Viet Nam has placed electronic component manufacturing at the focus of its industrial development, adding that South Korean firms would be eligible for incentives when investing in this sector.

Viet Nam’s rapid international integration and active participation in a growing number of free trade agreements would also benefit South Korean firms investing in Viet Nam to penetrate and expand regional and global markets, he said.

Deputy Director of Vietrade Bui Huy Son said that to promote trade and investment, the two sides need to focus on their relative advantages. For example, Son said the Vietnamese Government recently issued a support programme for parts-supplying industry development.

South Korea has been the top foreign investor in Viet Nam since 2014, with 70 per cent of its investments going into manufacturing and processing.

According to Tran Kim Oanh from Vietrade, Viet Nam had a number of advantages for South Korean investors, such as social and macro-economic stability, a young population, big consumption market, advantages in exports, and attractive investment incentives. 

SHB Cambodia permittedto increase chartered capital     

SHB Cambodia Bank, the Sai Gon–Ha Noi Bank (SHB)’s wholly-owned subsidiary, was given approval to increase its chartered capital from the current US$50 million to $75 million.

The Governor of the State Bank of Viet Nam (SBV), Le Minh Hung, on Tuesday promulgated a document to approve SHB’s proposal to increaseits chartered capital at the subsidiary after five years of operation in Cambodia.

Earlier, SHB submitted a document No 253/HĐQT on October 19, 2016, on the capital increase.

SHB opened its branches in Laos and Cambodia in 2011. However, SHB officially opened its subsidiary in Laos on January 15, 2016, and in Cambodia on September 9, 2016. It opened four branches in Cambodia.

The central bank also asked SHB to take responsibilities for implementingthe adjustment of the investment licence to foreign countries for SHB Cambodia Bank, in accordance with the current laws and regulations.

SHB was required to follow regulations on foreign currency management, investment and ensure safety in banking operation, including capital contribution and buying of shares. All the works must be reported to the SBV for supervision.

The Governor asked the Department of Bank Inspection and Supervision to supervise the SHB’s implementation of increasing its chartered capital. 

Citi to open Korea desks in Viet Nam, Czech Republic     

Citi has announced that it plans to open more South Korea desks this year to provide institutional banking services to South Korean multi-national clients in Viet Nam and across Europe.

Currently, Citi is operating South Korea desks in seven locations, including Shanghai, Beijing, Singapore, New Delhi, Moscow, London and New York, providing institutional banking services to Korean multi-national clients across Western and Eastern Europe, India, ASEAN, China, North America and Latin America. The bank plans to open more desks to serve Korean companies in key countries where they operate.

The new South Korea desks to be opened include one in Ha Noi in July and one in Prague, Czech Republic, in September. The financial services to be provided include corporate banking, investment banking, local debt raising, foreign exchange, cash management and trade finance.

“Our corporate clients are expanding their business worldwide based on their global competitiveness and strong brand awareness. The South Korea desk strategy is effective in successfully supporting the local needs of our Korean multi-national clients, along with Citi’s global network, and Citibank Korea’s strategy to reinforce support and investment for Korean multi-national clients is reflected in this expansion,” said MS Yoo, head of Corporate Banking for Citibank Korea.

Over the recent years, Citi has invested in building a network of Asia desks across the world to support companies in the local markets in which they operate. With a network of over 100 countries in the world, Citi has the local infrastructure and domestic knowledge to support these companies in markets across Europe, the Middle East and Africa, South America and North America.

The national desks have proved to be a strong foundation for Citi’s strategy of growing its business with Asian multinationals globally. It is an important competitive advantage for Citi. 

SMEs, banks clash over tech capital     

Small and medium-sized enterprises (SMEs) are unhappy that banks do not provide them with credit to upgrade technologies, but the banks say they are willing to lend if the companies meet certain conditions.

“Domestic companies have difficulties in getting loans for technology renovation whatever their size,” an official from the Paper and Wood Pulp Association said.

Furthermore, lenders do not accept machinery as mortgage, insisting instead on other assets like land and buildings.

“Most SMEs have limited capital, and for us machines are the most important assets,” Ly Thanh Sinh, chairman of the Minh Long Hung Garment and Embroidery Company, said.

“Banks do not accept mortgages of machines and so we don’t have the chance to borrow from banks.”

Do Phuoc Tong, chairman of the Duy Khanh Engineering Company, said members of the HCM City Electricity and Engineering Association have asked banks to accept machinery but in vain.

But he admitted “Banks also face difficulties because there is no law to deal with selling machinery in case of bad debts.”

Vo Tan Hoang Van, general director of the Sai Gon Commercial Bank, was quoted by Tuoi Tre (Youth) newspaper as saying “Banks are always ready to finance technology renovation by companies who have a good reputation.”

But banks refuse to finance purchase of second-hand machines, especially from SMEs.

“Banks do not know the actual value of such second-hand machines, and it is hard for us to assess the price and check if the price claimed is correct,” Van added.

The director of another bank, who asked not to be named, said SMEs often claim very high prices, even 10 times the amount they had actually paid to buy a machine, and so banks have to be wary.

“We have had many experiences with this, and our principle is to give loans to those who can repay. Therefore, we must have clear norms for this kind of loan.”

Oversea Vietnamese economist Nguyen Tri Hieu said loans against machinery are “very common in developed nations because enterprises do not claim high prices for their machines, but in Viet Nam that is common.”

Thus, banks are forced to demand other assets like property to avoid risks, he said.

“Under the circumstances, SMEs and banks cannot see eye to eye, especially as banks’ bad debts are still very high.”

Nguyen Hoang Minh, deputy director of the State Bank of Viet Nam’s HCM City Branch, said: “We have received complaints from SMEs but we should understand banks’ difficulties.

“Besides ensuring repayment of the loans, banks also have to consider the efficacy of the company’s business plans and its financial situation, and many SMEs get refused because they do not meet the requirements.”

Even in case banks do lend, SMEs said, they only provide 60 per cent of the cost of a project instead of 85 per cent like in developed nations.

And, interest rates on medium-and long-term loans for funding technology acquisition are quite high at up to 11.5 per cent, they said.

The association official said “Many loans are provided by international sponsors but they seek guarantees from local banks. But banks mostly refuse to provide the guarantee.”

VN must eye bubble: Deputy PM     

The State management agencies and local authorities must be cautious with the real estate market performances and wary of a market bubble, Deputy Prime Minister Trinh Dinh Dung reiterated recently.

Although the property market is on a stable trend and contributed significantly to the country’s economic development after a protracted period, close watch must be placed on the market development, Dung said.

At the meeting late in May, Dung said that the Ministry of Construction and local authorities must enhance market watch to ensure the market develops on the right track, prevent crisis and ensure a sustainable growth.

Several days after, at a meeting on June 1, Dung requested those present to implement measures to ensure the stability and healthy development of the real estate market, adding that this was critical to ensure macro-economic stability.

Dung said that the property market development must be in line with the country’s housing development strategy, especially social housing development, urban, industrial zone and tourism development and balance of supply and demand.

Dung reiterated this during a Government meeting on June 3.

The Deputy Prime Minister’s request was raised at a time when the land prices in HCM City soared in the recent months on rumours of new infrastructure projects that would benefit land prices.

Actions have been taken to calm down the land “fever” in the southern city. The construction ministry asked the HCM City’s public planning information and property agency to ensure transparency in its infrastructure projects.

On June 3, Directive 24/CT-TTg was issued about the solutions to promote growth to reach the economic targets in 2017, in which Prime Minister Nguyen Xuan Phuc asked the Ministry of Construction to closely watch the real estate market performances, actively raise measures to promote its healthy development, prevent speculation and unreasonable increases in prices and ensure the market transparency.

The State Bank of Viet Nam recently said that the credit growth for the real estate sector slowed down in the first five months of this year.

The Ministry of Housing and Real Estate Management Department under the construction ministry said that housing prices did not see significant increases in the period. 

Real estate nudges up in May     

Real estate sales in May rose slightly month-on-month, compared with the first quarter this year, according to the Ministry of Construction’s Management Agency for Housing and Real Estate Market.

Successful transactions were mostly in the mid- and hi-end segments, while affordable ones were not sold owing to their limited supply.

During the month, Ha Noi recorded nearly 1,200 successful deals, up by some 14 per cent against last month, raising the five-month volume to about 5,400.

In the southern metropolis HCM City, nearly 1,300 deals were reached, marking a 12 per cent increase. Between January and May, up to 5,870 transactions were successful.

Brokers said successful deals were mostly those located near downtown. Buyers also take into account transport convenience, facilities, apartment design, payment progress and the appreciation value.

In Ha Noi, major sales were predominant in the southwest, such as The Golden Palm in Thanh Xuan, Gelexia Riverside in Hoang Mai and Gemek Premium in Ha Dong, which have synchronous infrastructure.

Hi-end projects in HCM City also sold well, such as Vinhomes Golden River Ba Son in District 1 and Ha Do Centrosa Garden in district 10.

Low-rise housing in Lucasta Khang Dien in District 2 and Thu Thiem Garden in District 9 saw considerable sales.

Tourism and resort properties in coastal localities, such as Da Nang City, Nha Trang City in central coastal Khanh Hoa Province and Phu Quoc in southern Kien Giang Province, have become attractive to investors at home and abroad.

Unsold properties nationwide were valued at about VND27.89 trillion (US$1.23 billion), as of late May, down 10 per cent from the end of 2016. The figure declined VND474 billion ($20.87 million) from April.

Unsold land for housing accounted for more than 3.37 million square metres worth VND13.2 trillion ($581.33 million), the biggest proportion of total unsold property value.

It was followed by low-rise housing (3,492 units worth VND7.38 trillion or $325 million), condominium apartments (3,325 units worth VND4.83 trillion or $212.7 million), and land for commercial purposes (648,140 square metres worth VND2.48 trillion or $109.2 million).

Although unsold properties continued to decrease, the rate of decrease slowed down. Most of the unsold land is part of uptown projects lacking infrastructure, the management department said.

The value of unsold real estate in Ha Noi was still higher than in HCM City in May. It was estimated at VND5.45 trillion ($240 million) in Ha Noi and VND5.18 trillion ($228.13 million) in HCM City, down VND23 billion ($1 million) and VND100 billion (4.4 million) from April, respectively.

Palo Alto Networks introduces security advancements     

Palo Alto Networks has announced new advancements in its Next-Generation Security Platform on June 8.

The new improvements will extend the ability of organisations to safely enable applications, including Software as a Service (SaaS) options, for content and users, regardless of location, and prevent cyber-attacks, while simplifying security operations.

“The advancements made to the latest version of PAN-OS 8.0 address some of the key challenges faced by customers in Viet Nam, as they navigate the growing and increasingly-sophisticated cyber threat environment, said Kelvin Chin, Regional Head, Viet Nam, Indonesia and the Philippines, Palo Alto Networks.

“We provide a holistic approach to implement policies and programmes that will thwart such cybercriminals and help provide a safe space for cloud computing to progress and for all stakeholders to experience the promises of a digital future,” Chin said.

Building upon the existing capabilities in the platform, the new advancements included in the Palo Alto Networks platform operating system, PAN-OS® version 8.0, the Aperture™ SaaS security service and the new VM-Series virtual firewall models, address the security needs by providing protection from physical networks to the cloud. This will further simplify security operations and infrastructure, and ultimately, help organisations establish an effective and consistent security system.

Viet Nam was ranked last out of 14 countries assessed by the Asia Cloud Computing Association in its biennial Cloud Readiness Index. Cyber security is amongst the key areas where the country ranked the lowest, and for the first quarter of 2017 alone, the Vietnam Computer Emergency Response Team (VNCERT) reported almost 7,700 cyber-attacks.

Top 50 businesses to be announced     

The Nhip Cau Dau Tu (Investment Bridge) magazine and Thien Viet Securities JSC will honour the 50 most effective businesses in Viet Nam in 2016 (Top 50 2016) in HCM City on June 9.

The ranking is based on business results and reflects good corporate governance in 2016.

This year’s event marks the sixth anniversary of the Top 50 programme, which examines and ranks listed companies through scientific measurement methods in accordance with international standards along with the advice of financial analysts.

In the Top 50 2016, 12 companies have market capitalisation of over US$1 billion, in the sectors of retail, consumer goods, banking, real estate, telecommunications and aerospace.

Besides the ceremony, a seminar gathering representatives of large businesses with capitalisations in the billions of US dollars will also be held on the day.

The representatives may include leaders from Vinamilk, Masan Group, Vietjet Air, The Gioi Di Dong, Coteccons, Novaland and FPT.

Light crop drives up lychee prices

Consumers can expect to pay more for lychees this summer, as pickers start harvesting a lighter than expected crop in Vietnam, reports the Tien Phong (Vanguard) Newspaper.

Local growers have reported this year’s lychee harvest is substantially down from the prior three years and off by as much as 25% against last year alone because of unseasonal rains earlier this year that destroyed blooms.

The average selling price of lychees in the northern province of Bac Giang ranged US$.80-US$1.90 per kilogram for low to high quality fruit, which is near record high levels.

Duong Van Thai, vice chair of the Bac Giang People’s Committee noted lychees are selling for as much as US$3 per kilogram in China and most of the harvest from the region, which is just starting to trickle in, is bound for Chinese markets.

People who have got crop could do quite well this season, said Mr Thai. But of course, the disappointing problem is that very few have a good harvest to look forward too.

Model of collaborative training in agriculture

Vietnam National University of Agriculture trains 9,000 students annually but can’t keep up with market demand, so it has adopted a new training model to meet businesses’ needs.

To supplement its academic curriculum, Vietnam National University of Agriculture has expanded work-study programs and collaborated with businesses to arrange internships. 

Nguyen Thi Lam, a student of veterinary medicine, said “We have opportunities to meet employers before we graduate, so we can choose suitable training courses and seminars on work skills for our target profession.”

The CP Livestock Company of Vietnam and Vietnam National University of Agriculture have cooperated to train 500 veterinary and agronomy students. The students visit CP Company during a in probationary period and the company recruits the students when they graduate. 

Hoang Van Hung, who is in charge of recruitment at CP Company, said “We have cooperated with the University to offer the students practical opportunities. The University’s curriculum meets 80% of our needs. Our cooperation is expected to raise the rate in the future.”

A University survey shows that 70% of its students find a job within 6 months of graduation, 91% within one year. 

Associate Professor Doctor Bui Tran Anh Dao, Head of the Training Management Department, said "the University will send students on probation to Japan, Israel, Australia, and the Republic of Korea. It has to adapt to market demands. We have revised our training programs to meet businesses’ needs identified by market surveys".

The Vietnam National University of Agriculture has 33,000 students pursuing 28 majors. It has cooperated with countries strong in hi-tech agriculture such as Israel, Japan, ROK, Germany, and Australia.

Cashew nut segment lowers expectations for export growth

The global demand over the past seven years for the ever-popular kidney-shaped cashew nut has climbed to roughly 150% its value in 2010 and is now estimated at US$5.2 billion, industry data show.

However, unseasonal rains in Vietnam, the largest exporting country of cashews, earlier this year has wreaked havoc on the projected annual harvest, said Le Van Duc of the Ministry of Agriculture and Rural Development. 

Mr Duc who is the deputy head of the Ministry Department of Crop Production told reporters that yields are forecast to drop by 17% in the province of Binh Phuoc, which is the largest producing region in the country, accounting for more than half of the national annual production.

Meanwhile production is down a whopping 15% in the province of Ba Ria-Vung Tau and by an astonishing 50% in Lam Dong, which are two other high production regions of the country.

The damage caused by the rains spell nothing but trouble for the segment, Mr Duc noted, adding that the total crop forecast for 2017 has been downgraded by 52,000 metric tons compared to 2016 to just 252,000 metric tons.

Global cashew consumption in 2014, the most-recent year for which industry data is available, reached a record 716,682 metric tons, so a 52,000-metric ton shortfall is significant— as it likely represents a shortfall of roughly 7% of the global harvest for 2017.

Nguyen Duc Thanh, chair of the Vietnam Cashew Association, said the unexpected reduction may prevent the national economy from reaching the gross domestic product target set by the government for the year.

To ensure sustainable development for the segment, Mr Thanh suggested that the government expand the number of hectares under cultivation from the current 340,000 to 400,000 for next year.

However other experts have said that the cashew segment in Vietnam isn’t completely dependent upon local farmers and expanding the number of hectares under cultivation could prove counterproductive.

About two thirds of the nuts processed in Vietnam are grown somewhere else, principally in West Africa, which accounted for about 46% of the global cashew production in 2016, and most of those nuts were shipped to either Vietnam, India or Brazil for further processing.

Processing is labour intensive. Trees produce an oval-shaped fruit called the cashew apple with a single nut on the outside. Once harvested, the shells are softened by steam and then cracked by hand.

The kernels are dried, peeled and sorted by size and quality. Workers often coat their hands with oil to limit exposure to skin-irritating toxins in the fruit that is very like poison ivy, oak, or sumac.

So, even with a smaller domestic crop, Vietnam may import about 800,000 metric tons of raw nuts in the shell this year, more than twice the amount grown locally, according to Mr Thanh of the Association.

It probably makes better sense for Vietnam to cut production by 60,000 hectares for 2018 and let prices rise and rely more on import reexport operations and make a higher rate of earnings on lesser sales amounts.

Vietnamese notoriously focus on the top line sales figures and ignore bottom line earnings.  With total global demand capped it makes little economic sense to continually produce more, in turn putting downward pressure on prices leaving the farmers overall with less earnings.

A better strategy might be to focus on higher earnings by producing a higher-quality cashew nut, streamlining the production process through retooling with the latest modern technologies and innovative cost reduction.

Nguyen Trung Anh, director of the research and development centre of PAN Group, a leading regional agriculture and food group in Vietnam, agreed. He also suggested the segment pay more attention to improved cultivation and technological improvement and less on expanded cultivation areas.

It’s now more important than ever for farmers and processors to follow clean and environmentally friendly production practices to produce high quality products consistent with international standards than it is to broaden the outdated low earning traditional cultivation methods.

Foreign investors in race to take over real estate projects in Vietnam

The country's resort sector is looking like an attractive proposition as tourist numbers continue to climb.

A sharp increase in foreign arrivals to Vietnam at the start of 2017 has injected a huge development impetus into the coastal resort sector, and there have also been a raft of investments, mergers and acquisitions in other real estate sectors.

Vietnam’s largest property consultancy firm Savills recently released a report on the investment and transfer of real estate projects that have taken place so far this year.

One of the stand out transactions was made by CapitaLand Group with the purchase of a 0.6-hectare (1.5-acre) piece of commercial land in downtown Ho Chi Minh City to build Vietnam’s first A-class international complex.

The project will receive more disbursement from a US$500-million investment fund committed by Singaporean developers last November.

CapitaLand also announced the acquisition of a 90 percent stake in a 0.8-hectare project in Thao Dien, Ho Chi Minh City, to build over 300 apartments.

Another Singaporean developer Keppel Land has paid VND 846 billion (US$37 million) to raise its share to 16 percent in the Saigon Center project in downtown Ho Chi Minh City.

In March, Hong Kong Land officially became a strategic partner of the Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII) to build housing projects in the new Thu Thiem urban area.

In another popular residential area in the southern economic hub, local group An Gia and its Japanese partner Creed Group continued their takeover of five apartment blocks in La Casa project in District 7 worth some VND 910 billion (around $40 million).

In the resort sector, Malaysia’s Berjaya Land sold its 70 percent stake in a four-star resort on Phu Quoc Island to Sulyna Hospitality for $14.65 million.

According to Savills, Vietnam's tourism sector enjoyed a great start to this year with around 3.2 million foreign arrivals in the first quarter, up 29 percent on-year.

This growth follows record numbers in 2016 when Vietnam welcomed over 10 million international tourists. The country is forecast to receive 11.5 million foreign visitors this year.

This should provide the ideal conditions for further growth in the resort sector, said Savills.

More export doors for Vietnamese goods

The Ministry of Industry and Trade (MoIT) aims to connect Vietnamese businesses with major European and Asian groups such as Auchan, Casino, Central Group and AEON, so that Vietnamese goods can enter foreign distribution systems.

According to Dau Tu (Investment) newspaper, Vietnam is able to export its products via goods distribution systems in Casino (France), Metro Cash&Carry and Sehrgos (Germany), Makro (Republic of Czech), Coop and Conad (Italy), AEON and Lotte in Asia.

Head of the European Market Department under the MoIT Dang Hoang Hai said since 2011, the ministry has hosted dozens of events, including the Vietnamese Goods Week in Europe and Asia, to promote locally-made products to overseas distributors.

He added that such events have helped increase export turnover of Vietnamese goods in the Japanese AEON system from JPY18.2 billion (US$16.4 million) in 2013 to JPY23.4 billion (US$21.09 million) in 2014.

Vietnam exported US$19.6 million worth of goods via the Republic of Korea’s Lotte system in 2014, and US$30 million through Casino in 2015.

Director General of AEON Vietnam Nishitoghe Yasuo mentioned some Vietnamese export products in its supermarket chain such as tra fish, fruits, garment-textiles, food and household utensils. 

In 2016, AEON imported about US$200 million of made-in-Vietnam commodities, mainly apparel products and food, he said, adding that the Japanese retailer plans to order more from Vietnam soon.

After being acquired by the Central Group of Thailand, Big C supermarkets have opened up more opportunities for Vietnamese goods to enter other major markets.

Tran Thanh Hai, who is in charge of external and legal affairs at the group, said Vietnamese businesses can promote exports through Big C distribution and sale channels.

In 2015, the group set up a company in Vietnam to buy and export locally-made products to the European market, earning nearly 25 million USD in revenue.

This year, the Ministry of Industry and Trade will work to increase the presence of Vietnamese goods in foreign markets, focusing on staples such as garment-textile, footwear, seafood, coffee, tea, vegetable and fruits, timber products and home decoration.

By 2020, Vietnam is expected to export products to more big distribution systems in Europe, North America, Southeast Asia, and North East Asia, particularly in countries that sign free trade agreements with Vietnam.

Vietnam’s imports from Canada surge, exports barely budge in Q1

Vietnam’s exports to Canada rose slightly while imports from the North American nation almost doubled in the first quarter of 2017, according to Vietnamese Trade Counsellor to Canada Hoang Anh Dung.

Two-way trade between Vietnam and Canada hit US$1.07 billion during the period, up 152%from US$929 million in the same period last year.

Vietnam’s exports to Canada rose by 8% to US$902 million, compared to growth of 23% in the first three months of 2016. This was due to a 1.6% year-on-year decline in exports of machinery, electric and electronic devices, and 11.1% in mobiles.

Vietnam mostly shipped mobiles, printers, electric cables, timber products, textile-garment, footwear, seafood, coffee, cashew, vehicles, toys, rubber, and vegetables and fruits to Canada.

Vietnam remained ASEAN’s top exporter to Canada and one of the region’s largest trade partners with the country.

It also ranked fifth in Asia in exports to Canada, after China, Japan, the Republic of Korea and Taiwan (China).

Meanwhile, Vietnam imported US$166 million worth of commodities from Canada, a year-on-year increase of 77.3%, compared to a plunge of 38.7% in the same period last year, due to higher domestic demand for wheat, coal, oilseed residues, cattle feed and pharmaceuticals.

US investors continue to pour capital into Vietnam

Renowned US corporations like Uber, Coca-Cola, Exxon Mobil, Cargil and Pfizer are expanding their business in Vietnam, contributing to Vietnam’s export growth.

Thanks to sound relations between the two countries and Vietnam’s improved business climate, many US enterprises have signed contracts with Vietnamese firms to pour additional capital into oil and gas, information and technology, cattle feed and electronics.

Cargill Vietnam Company Limited is rushing to extend its operation in the country beyond its successful animal feed business. By the end of this year, the company will open a warehouse valued at US$10 million in Phu My port, the southern province of Ba Ria-Vung Tau.

It also plans to work with the Ministry of Transport on a port investment project in the north to increase its presence in Vietnam.

Meanwhile, Dow Chemical Company, the US’s leading chemical corporation, is planning to branch out its operation this year, revealed the Country Manager Tomoyuki Sasama in a meeting with Minister of Planning and Investment Nguyen Chi Dung.

Dow Chemical has worked with Vietnamese enterprises in the fields of agricultural chemical, biology and services, Sasama said, adding that with long-term investment, the company is ready to support Vietnam to set up a national chemical portfolio for research and development.

Dow Chemical has market capitalisation value of US$60 billion and produce chemicals in 35 countries and territories and employs 53,000 workers.

Besides, casinos and other forms of entertainment are expected to lure additional US capital. Time Warner, Inc, the world’s leading mass media and entertainment conglomerate, is seeking opportunities to invest in Vietnam.

In a survey conducted by the American Chamber of Commerce in Vietnam on 100 US companies in Vietnam, 72% of the firms affirmed that Vietnam’s business climate has improved, higher than the figure in Myanmar (70%), Malaysia (23%), Thailand (22%) and Brunei (16%).

Vietnam’s key business sectors feature US companies, including Exxon Mobil and Chevron in oil and gas field, Boeing, ADC-HAS Airport in aviation, Microsoft, Intel, Apple and HP in information and technology and General Electric, General Atlantis and AES in electric appliances.

Statistics showed that US enterprises have 834 projects with total registered capital of US$10.2 billion in Vietnam, with the US the ninth largest investor among 116 countries and territories in Vietnam.-

Work resumes on Bac Giang-Lang Son expressway

The Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and Bac Giang-Lang Son BOT JSC have inked a credit contract worth over VND10 trillion (US$440.4 million) to restart the Bac Giang-Lang Son expressway project, which was halted due to capital shortage.

Speaking at the signing ceremony on May 31, Deputy Minister of Transport Nguyen Hong Truong underscored that the project, which is built under BOT (Build-Operate-Transfer) form at a total cost of VND12 trillion (US$528.5 million), is significant to enhance transportation capacity and contribute to socio-economic development of localities in the north.

Commercial bank’s tightening long-term loans together with poor financial capacity of the former investor hampered the project implementation, Truong stated.

He asked Deo Ca Investment Joint Stock Company, the new investor of the project, to join hands with local authorities to complete the compensation of site clearance and resettlement. The road must open to traffic by the end of 2019, he stated.

He hoped that Bac Giang and Lang Son provinces will coordinate with Bac Giang-Lang Son BOT JSC, consultancy companies and contractors to ensure the quality of construction, traffic safety and environmental hygiene.

According to Le Quynh Mai, Vice Chairman of the Board of Directors of Bac Giang-Lang Son BOT JSC, the BOT expressway project has two components: the construction of a 63.8 kilometre section of the Bac Giang-Lang Son expressway and the reinforcement of 110 kilometres of National Highway 1’s surface.

About 60-70 percent of work load on the upgrade of National Highway 1 has been completed so far. Meanwhile, the expressway construction will be restarted next month.

The 25 metre-wide Bac Giang-Lang Son Expressway is designed to have four lanes with a speed limit of 100 kilometres per hour. The National Highway 1 section has a speed limit of 60-80 kilometres per hour.

Five toll stations are scheduled to be established along the expressway while two others will be set up along National Highway Road 1.