Savills: Da Nang real estate in good shape in 1H

Savills has released a report on Da Nang’s real estate market in the first half of this year.

In the hotel segment, total supply from 86 three- to five-star hotels was approximately 9,400 rooms, with five-star the best performer.

Average room rates increased 11 per cent year-on-year and revenue per available room (RevPAR) was up 22 per cent year-on-year.

Over 1,300 four- to five-star rooms will enter the market in the second half.

The report noted that in the apartment and condotel segments, there was one newly-launched condotel project in the first half. Total apartment supply increased 3 per cent year-on-year, with one newly-launched project.

Condotel absorption was relatively high, at around 70 per cent. High and committed yields reached 12 per cent per year and the more recent developer buy-back commitments are increasingly resonating with buyers. Large condotel supply, mainly from domestic developers, is expected to the end of the year and into 2018.

Meanwhile, the apartment average absorption rate was approximately 33 per cent. Primary prices averaged $1,690 per sq m, down year-on-year. Two projects will launch 1,200 apartments by year’s end.

The second-home villa market saw high absorption in the first half. Total villa stocks were 801 dwellings, of which 169 were from the primary market. Ngu Hanh Son district was the largest supplier, with 728 dwellings, representing a 91 per cent share, followed by Son Tra district with 73 dwellings, or 9 per cent.

Market-wide absorption was 81 per cent, and seven projects were fully sold.

Fully finished villa land prices were from $650 per sq m to approximately $3,000. Forty-five dwellings will enter the market in the second half.

Da Nang continues to be one of the leading local destinations for domestic and international tourists, according to the Savills report.

There were 3.2 million visitors in the first half, up 33 per cent year-on-year. International visitors were up 72 per cent year-on-year, to 1.2 million.

CGV opens 50th cinema in Vietnam

CJ CGV Vietnam (CGV), a subsidiary of South Korea’s CJ Group, opened its 50th cinema complex in Vietnam a few days ago, at Parkson Dong Khoi in Ho Chi Minh City’s District 1, with five modern cinemas and 404 seats.

The opening increases CGV’s cinemas to 313 in the country with 42,795 seats and confirms its commitment to building high quality cinema complexes in Vietnam, to bring the movie experience to more and more people around the country. In an official statement released in May, the South Korean company said it planned to invest some $200 million over the next four years to upgrade and expand its cinema complexes in Vietnam, including in second tier cities and remote areas.

CGV began operating cinemas in Vietnam six years ago after acquiring MegaStar, the country’s largest cinema chain at the time, for $73.6 million. It is now Vietnam’s largest film distributor and cinema operator and posted $79 million in revenue last year, up 3.3 per cent year-on-year, and around $4.1 million in profit, which was almost triple the level of the previous year.

“The local entertainment market’s high annual growth, which has been estimated at more than 20 per cent, offers huge potential for investors and justified the company’s investment, which is far higher than its annual profits,” said Mr. Dong Won Kwak, General Director of CGV Vietnam.

Related businesses are vying with each other to find the best way to maximize cinema talent and other resources to develop the local film market, including arranging film-making workshops and investing in movie projects.

By the end of this year, it will be operating 54 or 55 cinema complexes nationwide, including in remote areas. It will invest in building 12-15 new complexes each year, four or five of which will be in remote areas. With total investment of $4-7 million per complex, total investment will reach $70 million.

Vietnam’s biggest cinema operator in Vietnam also launched its immersive technology studios in Hanoi and Ho Chi Minh City in May, the first such facilities in Vietnam. CJ CGV Vietnam is now testing other technologies for large screens and expects to introduce new services in Hanoi and Ho Chi Minh City in the next few months, as a part of its total investment of $70 million into Vietnam’s cinema market this year.

Mr. Dong Won Kwak told the opening ceremony that Vietnam’s population is double the size of South Korea’s and cinema-going is becoming increasingly popular, meaning the country has a lot of development potential over the next decade.

Import taxes on auto parts may be cut

The Ministry of Finance (MoF) plans to cut import taxes on automobile parts in line with WTO rules, according to the Vietnam News Agency (VNA).

Vietnam’s WTO commitments require it maintain a tax level on imported auto components of between zero and 30 per cent. Officials say the changes will also serve domestic interests.

Deputy Minister of Industry and Trade Do Thang Hai was quoted by VNA as telling a press conference at Smart Industry World 2017 in Hanoi last week that the import tax cuts would bolster auto production in Vietnam by leveling the playing field between imported vehicles and vehicles made in the country with imported parts.

“Automakers said that they had not received much support from the State, but the government’s upcoming document will create fair play for businesses,” Mr. Hai said. “Automakers and auto assemblers only need to be treated as fairly as auto importers.”

Automakers have invested thousands, and even tens of thousands of billions of VND but there is still an unreasonable issue: import taxes on auto parts are higher than for completely-built-up (CBUs) units, he said.

In a draft document currently before relevant ministries, sectors, and associations to collect opinions, MoF presents two methods for implementing the tax cuts, which will apply to parts that are used to assemble cars with nine seats or less and trucks with capacity of five tonnes or less. The document will be submitted to the Prime Minister for approval in the future and will become effective from January 1, 2018 to December 31, 2022.

In the ministry’s first proposed method, import tariffs on 163 auto parts will be cut to zero per cent. The average tariff on auto components would be reduced from 14-16 per cent to 7 per cent for nine-seat cars and to 1 per cent for trucks.

In the second method, the ministry wants to cut import tariffs on 19 components, including engines, gear boxes, automatic transmissions, and fuel injection pumps, which are not produced in Vietnam, from 3-50 per cent currently to 0 per cent. Under this plan, the average import tax on components would fall from 14-16 per cent to 9-11 per cent for cars and to 7.9 per cent for trucks.

According to the finance ministry, both methods encourage businesses to manufacture and assemble automobiles locally. Officials say the cuts would increase competitiveness with imported cars, support local industry, increase domestic consumption, and promote exports.

Comparing the two methods, the ministry said the first would help automakers cut costs more significantly than the second.

The first method would cut total import taxes on components for both types of vehicles by an estimated VND5.23 trillion ($229.79 million) and result in VND535 billion ($23.5 million) more in corporate income as production increases. As for the second method, total import taxes would be reduced by VND3.5 trillion ($154 million) and corporate income would increase by VND535 billion ($23.5 million).

To benefit from the tax cuts, the ministry said that automakers would have to reach an annual growth rate of 16-18 per cent and 40 per cent of production value must accrue locally, in line with the national automobile industry development program. Automakers that don’t hit the targets will pay higher taxes on imported components.

Manufacturers must record annual growth of 16 per cent, with a minimum output of 34,000 units by 2018. Output must rise steadily each year to hit 61,000 units by 2022. 

With this requirement, the ministry said three automakers may already qualify to join the program. According to the Tien Phong (Vanguard) newspaper, they are Toyota Motor Vietnam, Hyundai Thanh Cong, and the Truong Hai Automobile Corporation.

As for trucks, the ministry requires that manufacturers achieve annual growth of 18 per cent, with a minimum output of 8,000 units in 2018, raised to 15,000 by 2020. There may be only one business qualified under these regulations, according to the ministry. 

Automobiles must also meet emissions and fuel consumption standards. Cars are required to have engines of 2,000 cc or less, meaning they must be relatively fuel efficient. They must also have economy of seven liters per 100km, and both cars and trucks must meet strict European exhaust emission standards.

Tourists to Ca Mau increase by 11 percent in eight months

More than 840,000 tourists, including 17,000 foreigners, chose the southernmost province of Ca Mau as a destination for their holidays in the first eight months of 2017, rising by 11.2 percent from a year earlier.

Tourism earned Ca Mau total revenue of nearly 400 billion VND (17.6 million USD) during the period, up 38 percent year on year.

The tourist number increase is attributable to the province’s improved service quality, diversified typical tourism products, and upgraded infrastructure at many places of interest.

Chairman of the Ngoc Hien district People’s Committee Ly Hoang Tien said in the National Day holiday from September 2 to 4, the Dat Mui and Khai Long tourism areas attracted over 30,000 visitors thanks to Ho Chi Minh Highway’s section from Nam Can district to Dat Mui commune becoming operational.

According to Nguyen Tien Hai, Chairman of the Ca Mau People’s Committee, resources mobilisation will continue to be implemented for developing infrastructure and upgrading tourist sites so as to capitalise on local tourism potential and advantages.

Management efforts will also be augmented to ensure security, order and safety for tourists at local attractions, he noted, adding that more attention will be paid to tourism cooperation with other regional localities, connecting roads to boost tourism, improving service quality, diversifying tourism products, and encouraging the community-based ecotourism.

Ca Mau is accelerating the construction of four important facilities at the Ca Mau Cape tourism area in Ngoc Hien district. The provincial Department of Culture, Sport and Tourism is also updating tourism-related information and stepping up tourism promotion activities.

The province aims to serve 1.2 million tourists this year, Hai said.

Soc Trang, RoK firm cooperate in developing garment factory

Leaders of the Mekong Delta province of Soc Trang had a working session on September 6 with representatives of Youngone Corporation from the the Republic of Korea (RoK) on the production and recruitment plan for its garment factory.

Under its plan, Youngone will build a factory covering 15ha at An Nghiep industrial zone in An Hiep commune, Chau Thanh district. The project is expected to be put into operation in March 2018, employing 8,000 staff and workers.

Yonguk Lee, Project Director of the firm, said the corporation is running three factories in the northern provinces of Nam Dinh, Bac Giang and Hung Yen, employing over 11,000 labourers.

The firm wishes to contribute to Soc Trang’s socio-economic development and job generation for local residents after the project comes operational, Lee said, adding that a workshop, which covers 1,500 sq.m in Minh Chau residential area in Soc Trang city, is scheduled to become operational on September 20. 

It needs about 500 staff and workers. 

Currently, the enterprise is providing Soc Trang city and Chau Thanh district with 100 sewing machines for training courses for local labourers, he said.

Addressing the working session, Vice Chairman of the Soc Trang People’s Committee Le Thanh Tri said that the province will create optimal conditions for the factory to operate as scheduled.

He also pledged to work closely with the corporation in making plan on housing for workers, while assisting the firm in removing obstacles facing it during the project implementation.

Central economic commission head attends Eastern Economic Forum

Head of the Party Central Committee’s Economic Commission Nguyen Van Binh joined top officials from 60 countries worldwide at the third Eastern Economic Forum (EEF) which opened in Vladivostok city on the Far East of Russia on September 6.

Nearly 5,000 top public officials, representatives of respected organisations and leaders of large Russian and foreign companies get together at the event themed “The Russian Far East: Creating a New Reality”.

In his speech at the forum, Binh lauded the Far East region’s positive changes in recent years.

Vladivostok will become a new economic centre connecting Russia and other economies in Asia-Pacific thanks to its abundant natural resources and Russia’s strategic policies to develop infrastructure, technology, finance, human resources and other mechanisms to branch out economic special zones, Binh highlighted.

Meanwhile, Deputy Prime Minister and Presidential Envoy to the Far East Federal District Yuri Trutnev said that Far East has created favourable conditions for the investors like reducing electricity costs and granting electronic single entry visas for citizens of 18 countries when entering Russia through checkpoints at the Free Port of Vladivostok.

Russia is willing to cooperate with partners and ensure a good environment for the investors in healthcare, education, sports and culture, he added.

After the opening ceremony, the Vietnamese official and the Russian Deputy Prime Minister witnessed the signing of a cooperation deal between Vietnamese dairy firm TH True Milk and Russian Far East development group.

The EEF was firstly held in 2015 to promote economic development in the Far East and enlarge international collaboration in Asia-Pacific. The second forum in 2016 recorded over 200 agreements valued at around 35 billion USD.

President Vladimir Putin is expected to deliver a speech at the plenary session on September 7.

Vietnam to make customs reform

The Global Alliance for Trade Facilitation (GATF) will help Vietnam to establish a customs bond system – part of the country’s efforts to modernise and reform administrative procedures relating to import and export.

The GATF and the Vietnam Private Sector Forum (VPSF) launched their joint project on customs bond last week, aimed at facilitating customs clearance in Vietnam. A customs bond is an agreement that ensures that any importer will pay all fees and taxes as well as operate according to all laws and regulations.

This is the start of the GATF’s Technical Assistance Project with the Government of Vietnam to help the country implement its World Trade Organisation (WTO) commitments, as well as implement the Government’s Resolution 19 on improving the national competitiveness and business environment.

Vietnam is the first country in Asia and the first developing country in the world to be selected by donor countries in the WTO to receive technical assistance under the agreement on WTO Trade Facilitation, in effect since February 22, 2017 when 112 countries ratified it.

The scheme will be co-ordinated by the PM’s Advisory Council for Administrative Reform, whose standing agency is the Government Office.

Customs bonds are designed to streamline importers’ process for bringing goods into the country. Anyone that is importing goods or transporting them locally is required by the customs agency to purchase a bond from a surety company. If an importing company fails to pay fees or follow regulations, Customs can file a claim against the bond. The surety company would then pay to make restitution, but in the end the importing company is required to pay back the surety company.

According to the advisory council, a customs bond is a trade-facilitating mechanism widely used in countries such as the US, Australia, Sweden, New Zealand, the UK, Singapore, Malaysia, the Philippines, Thailand and the Republic of Korea.

Basically, the mechanism is meant to separate the releasing of goods at border gates and the preparation and submission of required customs documentations to facilitate the export or import into the country.

Once importers or exporters have customs bonds, they are guaranteed to fulfill their tax obligations before their goods arrive in the country, so the goods can undergo faster customs clearance.

GATF director Philippe Isler said that the GATF would provide Vietnam feasible solutions to implement WTO commitments, increase national competitiveness and improve business climate.

Foreign experts from WTO member countries will assist with administrative procedure reforms, reviewing and amending the legal framework as well as monitoring Vietnam Automated Cargo and Port Consolidated System/Vietnam Customs Information System (VNACCS/VCIS).

A customs bond system would be a breakthrough in facilitating trade in Vietnam, he said.

Nguyen Viet Nga, vice head of International Affairs Department under Vietnam Customs, said that in Vietnam, customs clearance operations consumed up to 72 percent of required time for goods to be released from border gates because of cumbersome procedures relating to specialised inspections of goods.

Dao Huy Giam, General Secretary of the Vietnam Private Sector Forum, said that the customs bond has helped enterprises, surety companies and customs effectively monitor import and export processes and save time in customs clearance.

An official from the Insurance Supervisory Authority under the Finance Ministry told thoibaotaichinhvietnam.vn that over 30 non-life insurance companies in Vietnam provided insurance guarantees but none of them offered customs bond.

Surety companies face major difficulties such as a lack of information about insured companies or the risk of losing money that they paid to make restitution. 

Vietnam has climbed 9 spots to 82 from 91 on the World Bank’s Doing Business 2017 ranking, and moved 15 spots up to 93 from 108 for improved border-trade indicators related to import-export operations. Time needed to handle customs procedures was cut from 138 hours to 108 hours.

Vietnam wants to cut down the required time for customs procedures from 108 hours to 80 hours by 2020.

August retail sales in huge surge

Vietnam’s total revenue from retail sales and services reached 2.58 quadrillion VND (114.7 billion USD) in the first eight months of this year, a year on year increase of 10.3 percent, reported the General Statistics Office (GSO).

The figure amounted to an 8.9 percent increase, excluding the price factor, the highest rise recorded since the beginning of this year, said GSO domestic trade expert Vu Manh Ha, adding that the figure was also higher than 8.5 percent growth of the same period last year.

Ha attributed the growth in purchasing power to surges in demand for accommodation and catering services after high school graduation and university examinations as well in essential goods for the new school year which starts in September.

Recovery in revenue from accommodation and catering services in four central provinces – Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue - after last year’s environmental disaster caused by Formosa also contributed to the retail sales increase, he said. 

From January to August, revenue of retail sales reached 1.93 quadrillion VND (86.1 billion USD), accounting for three quarters of total revenue, a yearly rise of 10.3 percent. Sectors posting significant growth included textile and garments, up 14 percent; equipment and home appliances, up 11.6 percent; food and foodstuff, up 10.6 percent; and transportation, up 7.6 percent.

Revenue from accommodation and catering services stood at 318 trillion VND (14.1 billion USD), an increase of 11.3 percent against the figure in the same period last year.

Meanwhile, the tourism sector experienced a revenue increase of 11 percent year-on-year in the first eight months to 23.1 trillion VND (1.26 billion USD), with several localities witnessing significant growth, such as the northern province of Bac Giang with 25.1 percent; the central province of Khanh Hoa (23 percent); HCM City (12.2 percent) and the southern province of Ba Ria – Vung Tau (12 percent).

The Association of Vietnam Retailers has forecast that the country’s retail turnover will rise to 179 billion USD by 2020.

Cruise ship launched in Nghe An and Ha Tinh

Giang Dinh Co Do cruise ship has been launched on the Lam River to take visitors to popular tourist sites in the central provinces of Nghe An and Ha Tinh.  

The USD2m Giang Dinh Co Do ship is compared to a floating hotel with two floors to accommodate 340 passengers. Tran Quoc Lam, chairman of Song Ngu Son-Giang Dinh JSC, said Giang Dinh Co Do meant Giang Dinh ancient wharf.

"We aim to restore the Giang Dinh wharf with a cultural market, resort, fishing place and old house which was built with the ironwood that was used to welcome the ship of Chancellor Nguyen Nghiem, under the Le Dynasty, to his hometown in Nghi Xuan District, Ha Tinh Province," Lam said.

Tourists will be able to visit Hon Ngu Island, Cua Lo Beach, Doc Cuoc Temple and enjoy various entertainment activities offered on the ship including traditional singing and cuisine in Nghe An and other regions.

Vice Chairman of Ha Tinh Province People's Committee Dang Quoc Vinh said more firms had invested in Ha Tinh, boosting the local economy and Giang Dinh Co Do was the first of many coming tourism projects.

Vinh said Nghi Xuan was the district with most potential to attract tourists and asked the local authorities to co-operate with investors to quickly complete procedures and implement new tourism services.

Casino business: Commercial banks allowed to provide services

Commercial banks will be allowed to trade and provide foreign exchange services related to the casino business from next month.

This information was stated under Circular No10/2017/TT-NHNN on the management of foreign exchange for the casino business, which will come into effect from October 15 this year.

Casino business is a conditional business and under close management of competent State agencies. It is regulated under Decree 03/2017/NĐ-CP, which allows foreigners and Vietnamese people residing overseas with passports licensed by a foreign competent agency to gamble at the country’s casinos.

Vietnamese citizens are also permitted to enter domestic casinos on a three year trial basis. They must be 21 years old or above with full capacity for civil acts of individuals according to Vietnamese law, have proof of regular monthly income of VNĐ10 million (US$450) or be subject to third degree taxation according to the law on individual income tax. The Ministry of Finance is responsible for providing citizens with application forms to verify the above conditions.

After the pilot period, the Government will then decide whether or not to continue to allow domestic citizens to participate in gambling at casinos.

According to experts, easing regulations for the casino business will help prevent capital from leaving the country by Vietnamese who visit casinos in neighbouring countries such as Cambodia and Macao, help better manage social order in the sensitive entertainment area in Việt Nam and attract foreign tourists.

Furthermore, Việt Nam hopes to further integrate regionally and internationally, attract billions of dollars of foreign investment to sustain growth and make tourism a key sector to further development.

State treasury mobilises VND200 billion through government bonds     

The State Treasury of Viet Nam mobilised VND200 billion (US$8.77 million) through Government bond auctions last week, the Ha Noi Stock Exchange (HNX) said.

According to the HNX, a winning volume was more than two weeks ago, but it was still very low, accounting for only 10 per cent of the offered bonds, Thoi bao tai chinh newspaper reported.

Last week, bonds valued at a total of VND2 trillion were offered for four tenures - five years, seven years, 10 years and 15 years. Ten-year bonds attracted five bidders with eligible bid volume at VND1.051 trillion and an annual interest rate of between 5.38 and 6.3 per cent. Thus, the State Treasury mobilised VND200 billion from issuing 10-year bonds with annual interest rate of 5.38 per cent.

However, the five-year, seven-year and 15-year bonds did not see a winning volume.

Since early this year to date, the State Treasury has mobilised VND144.093 trillion through Government bonds issued on the HNX. 

BMW bikes recall in VN     

BMW has recalled all 79 of its Motorrad line R1200GS and R1200GS Adventure motorcycles sold through Euro Auto, BMW’s official distributor in Viet Nam, due to a faulty suspension system.

According to the Vietnam Register (VR), any motorcycle of the two models under production codes 0A01, 0A02 and 0A32, manufactured between November 2013 and June 2017 at the BMW factory in Aktiengesellschaft, Germany, is subject to the recall, but is only eligible for repair and inspection if it was sold by Euro Auto in Viet Nam.

Any vehicle produced after June 2017 is considered unaffected.

The recall and restoration period should start from late August 2017 to August 7, 2019 at BMW’s two official distributors in Ha Noi at No 1, Ngo Gia Tu Street, Long Bien District and HCM City at No 808, Nguyen Van Linh Street, District 7.

Repair fees will be paid by Euro Auto and its official distributors.

Each motorcycle should be repaired and have parts replaced, during which it will be fitted with an additional fixed fork tube bush which slides over the existing fork tube to strengthen it.

Starting from July 2017, complaints have been filed against BMW’s suspension system for the models due to several road incidents. Globally, about 185,000 vehicles will be recalled, according to BMW’s reports.

The two vehicles are sold in Viet Nam for about VND750 million to VND800 million each (US$33,400 to $35,600), with a 1,170 cc two cylinder engine.

In some cases, the faulty suspension system can result in the fork becoming separated from the yoke, resulting in an immediate front end failure, which can result in the fork tube coming loose, the VR warned.

There has yet to be any documented case of casualty or injury due to the two models’ flawed suspension system in Viet Nam, though it is still recommended the vehicles be brought back for restoration to ensure safety. 

Companies fined for medical violations

Three pharmaceutical businesses in HCM City were fined VNĐ180 million (US$7,920) each for being unable to present necessary certificates related to medicine production.

The three companies were fined for producing natri chloride 0.9% when they were not yet certified as complying with the Good Manufacturing Practices (GMP) Guidelines by the World Health Organisation (WHO), and for not registering their medicinal products with the authorities.

The three companies are the COMIHO Việt Nam JSC located in Tân Bình District, the Đại Lợi International JSC and the Nam Hà Medical Equipment Production and Trading JSC, both located in District 12.

Another company, the Quốc Anh International Hospital Ltd located in the city’s Bình Tân District, was fined VNĐ120 million ($5,280) for providing medical examination and treatment services beyond their registered scope of expertise.

Fines of VNĐ3 million to VNĐ35 million ($132 to $1,540) were imposed on thirteen clinics and pharmaceutical businesses in the city from August 28 to September 1 for their wrong medical practices and medicine production and trade.

The types of wrongdoings include trading medical equipment without documents that clarify their origins, retail trading of outdated medicines, advertising medical services that are beyond their registered scope of expertise, and advertising specialised products and services without approval from the authorities.

Paper imports from US rise high

Paper imports from the US skyrocketed 203.4% to 17,700 tons in the first seven months of this year, according to latest statistics from the General Department of Vietnam Customs.

The Department reported that July was the second month of this year seeing a decline in paper imports with 169,900 tons valued at US$136.3 million, down 2.1% in volume and 3.6% in value compared to June. In total, in the first seven months, Vietnam imported 1.1 million tons of paper worth US$954.7 million, up 9.3% in volume and 14.2% in value against the same period last year.

China and Taiwan remained the key importers of Vietnam paper with 247,700 tons and 162,200 tons respectively, trailed by Indonesia with 154,700 tons and Japan with 145,200 tons.

Besides, Vietnam imported paper from Sweden, Singapore, Finland, Germany and Malaysia.

Vietnam promotes renewal energy development

As fossil fuels run out, the use of renewable energy is necessary for Vietnam's development orientation and energy security. Vietnam is considered a country with a great potential for renewable energy.

Vietnam has a great potential for wind, solar, and biomass energy. A recent survey shows that Vietnam’s total wind power potential is between 7,000 and 8,700 MW, mainly concentrated in the central coast, southern, and central highlands areas and islands.

With a total of about 2,500 hours of sunshine a year, Vietnam has a strong potential to develop solar energy.

As heavy investment in industries and the population are on the rise, meeting the growing demand for electricity is a real problem. Renewable energy is one solution adopted by many countries to replace the power based on dwindling fossil fuels,

Aware of the potential of renewable energy for Vietnam’s socio-economic development, the Vietnamese government has approved a strategy for renewable energy development in Vietnam by 2030 with a vision to 2050.

Tran Viet Ngai, Chairman of the Vietnam Energy Association, said, “Fossil fuels are running out and causing environmental pollution, especially coal power plants. This makes renewal energy essential. Vietnam has a plan to develop renewable energy by 2030 with a vision to 2050. Thanks to this policy, a number of foreign companies have invested in wind and solar power in Vietnam.”

Despite its great potential, the exploitation of wind, solar, and biomass energy in Vietnam remains on a small pilot scale. 

In 2013, 10 wind turbines with a capacity of 16 MW - the first phase of the Bac Lieu wind power project – were officially connected to the national power grid, providing more than 100 MW of electricity per day. 

In the second phase, an additional 50 wind power towers with a capacity of 83 MW will be built. This is one of 3 wind power plants that have been put into operation. 

The other projects are in Tuy Phong district and on Phu Quy Island in Binh Thuan province. The two largest solar power projects are the Di An project, with a capacity of 212 KW, and the Saigon Hi-Tech 200 KW project.

More and more companies are getting involved in manufacturing batteries and solar equipment, according to Vu Minh Phap, Deputy Director of the Center for New Energy and Renewable Energy.

“We have formed a market for domestic solar cell and component manufacturers, which will reduce the cost of renewable energy systems,” Phap said.

Each kind of energy - small hydropower, wind energy, solar energy, biomass energy, and bioenergy - needs different technologies and policies to develop in line with global trends and practical conditions within Vietnam.

Doan Van Binh, Director of the Institute for New Energy and Renewable Energy, said, “We are particularly interested in biomass energy. Input materials that are by-products of agroforestry production and husbandry been used to produce solid energy in various forms, such as bio-tablets, bio-coal or fuel rods. We have also created different forms of biogas, and bio-chemicalization of biomass.”

According to the scenario for renewable energy development, Vietnam can exploit 3,000 to 5,000MW with an output of more than 10 billion kWh from renewable energy by 2025.

CJ CGV invests heavily in cinemas

CJ CGV Vietnam, a subsidiary of Korean firm CJ Group, is planning to spend up to US$200 million expanding its cinema system in Vietnam.

The company launched another cinema at the Parkson Dong Khoi commercial complex in downtown HCMC on August 31, taking its total in Vietnam to 50 cinemas with 313 studios and around 42,800 seats.

CJ CGV is planning to spend US$200 million bringing its state-of-the-art cinema technology to its theaters nationwide as part of its growth strategy in the 2017-2020 period.

The company plans to open 12-15 new cinemas a year, including four to five in remote provinces like Yen Bai, Ha Tinh, Tra Vinh, Kien Giang and Vinh Long. With each cinema costing US$4-7 million, its total investment could amount to US$70 million this year.

In early May, the leading cinema chain launched the ScreenX immersive technology, the first of its kind in Vietnam, in Hanoi and HCMC. The technology offers moviegoers a 270-degree view from a three-dimensional angle.

Besides, CGV is working on plans to build cinemas with large screens in Hanoi and HCMC until 2020. Three to four locations have been chosen for large-screen cinemas in the two cities.

CJ CGV, an entertainment platform operator under CJ Group, is the largest film distributor and cinema operator in Vietnam and one of the top five cinema chains in the world.

In Japan, Vietnamese chicken will soon be on the menu

The first delivery of chicken from Koyu & Unitek Co Ltd headquartered out of Ho Chi Minh City, Vietnam will soon be on its way and on the menu in Japan, say company representatives.

While the first shipment may represent a relatively small volume, the moment itself is significant as it marks an early step in the Vietnamese ambitious plan to establish itself on the global poultry stage—and Japan is a high priority target. 

Earlier in June the company opened its first poultry slaughtering and processing plant at the Long Binh Industrial Zone in the southern province of Dong Nai as part of its plan to sell product in the Japanese market.

The US$6 million facility has been equipped with the latest in technologically advanced machinery and equipment and operates in accordance with strict food safety and hygiene standards, note company representatives.

The company expects to ship its first chicken to Japan by boat on September 9, which should reach the dock in Tokyo and be on supermarket shelves and dinner plates within 10 days.

Oysters from northeast Vietnam start shipping to the EU

Up until about a decade ago, the fledging oyster industry along the north-eastern coast of Vietnam in the provinces of Thai Binh and Nam Dinh had virtually zero production, say local officials.

Then, under the guidance of a team of Australian shellfish experts headed by Dr Wayne O'Connor from the Port Stephens Fisheries Institute in New South Wales all that began to change. 

Within four short years, 2007-2010, production really began to take off, surging to roughly 2,000 metric tons per annum largely due to improvements at the Vietnamese government-owned oyster hatchery on Cat Ba Island.

That growth rate was somewhat remarkable considering that oysters start out as larvae, so small that they are invisible to the naked eye. After about a year, they can grow to 16-25 millilitres and usually reach market size anytime from 18-24 months.

The hatchery at that time was also producing an estimated 100 million spat a year.

Oysters are a type of shellfish that when they reproduce, spawn tiny larvae that freely navigate the waters until they find an appropriate habitat with a structure to settle on. Once the larvae permanently attach to a surface, they are known as spat.

Although at that time the industry in the two north east provinces showed great promise, it quickly evaporated largely because of the choices that farmers made to use the cheapest production methods.

They chose to grow oysters in clumps on recycled shells, which were hung on rafts.  This method resulted in oysters of unequal size and shapes, which greatly reduced their marketability and the price consumers were willing to pay.

The oysters raised had little to no ability to sell profitably in the export market.

The Dutch company Lenger Seafoods is now collaborating with the Nam Dinh Province People’s Committee to transform the industry and bring it out of the doldrums and into compliance with international norms.

Nguyen Phung Hoan,vice chair of the Committee, said that currently there are about 2,000 hectares in the province devoted to oyster farming. To date most of production has either been consumed locally or shipped to Chinese buyers.

Lenger Seafoods based out of the Netherlands has just opened a newly constructed facility to process oysters for export. It has also worked diligently to establish a supply chain, from breeding, harvesting, to transporting and processing, in line with the strictest of international standards.

The management of Lenger claim they can produce up to 300 metric tons of oysters per day— and already have begun to export product to markets in the EU such as Italy.

Key markets the management stated it is focusing on expanding into include the Netherlands, Spain, France, the Republic of Korea, Japan and US.

This is good news to the many young Vietnamese looking to get in on the action. At a recent conference in Nam Dinh Province, more than one third of the attendees were young people interested in starting oyster businesses that export to overseas markets.