National GDP likely to reach 6.5 per cent

The country's gross domestic product (GDP) this year is expected to be 6.5 per cent, much higher than the Government's set target of 6.2 per cent, the National Financial Supervisory Committee (NFSC) forecast.

According to the committee, the GDP in the first quarter of the year posted a 6.03 per cent year-on-year increase, the highest in the last five years.

The committee said the increasing GDP was due to improved demand. The total retail sale of products and services in the first quarter (excluding price rise) was 5.1 per cent higher than the same period last year.

The investment demand also improved. As of March 20, the country's credit growth reached 1.25 per cent, much higher than the level of 0.5 per cent in the corresponding period last year, thanks to interest rate cut to some extent.

FDI disbursement in the first three months was 7 per cent, higher than 5.6 per cent in the past 12 months.

The country's exports in the first quarter of this year grew 6.9 per cent against the same period last year to touch US$35.7 billion.

As for inflation, the committee said CPI this year would continue to be a low 3.5 per cent. If the world food prices fall this year, the CPI target of 5 per cent would depend on electricity tariff adjustment.

It calculated that the power tariff rise of 7.5 per cent on March 16 would increase the whole year's CPI by 0.5 per cent.

Realty association sets up brokerage branch

The Viet Nam Real Estate Association (VNREA) will establish a brokerage branch to support, represent and protect the rights and interests of organisations and businesses dealing with real estate brokerage.

The branch was introduced at the VNREA annual meeting in the central port city of Da Nang recently.

Head of the Construction Ministry's Housing and Property Market Department Nguyen Manh Ha accepted his posting as the branch's chairman.

All brokerage businesses, exchange floors and individuals who have received brokerage certification are welcome to take part in the association.

The branch is expected to be a channel for receiving complaints and for the contribution of ideas from organisations and individuals on the State's policies on real estate.

According to VNREA's General Secretary Tran Ngoc Quang, the association has more than 1,580 members nationwide. Some 30,000 people nationwide have been granted real estate brokerage and assessment certification.

At the meeting, Tran Kim Chung from the Central Institute for Economic Management presented three scenarios for the domestic market, saying it was standing at a three-way crossroads, reported news website dddn.com.vn.

The first scenario is that the market will continue to remain stable with a small potential for development, as is currently the case. This is the most likely scenario.

The second scenario is that the market will begin a new growth cycle. This may occur if a number of factors come together: The situation in the East Sea must become stable; Viet Nam must successfully participate in the Trans-Pacific Partnership (the country's economy is expected to increase by 10 per cent if this becomes a reality); the State must remain a macro economy with stable monetary policies; and revised laws affecting the construction and real estate business must be passed, which will further open the door for Vietnamese living abroad and foreigners to buy a house and own real estate in Viet Nam.

The third scenario is that the market will see a downturn if the situation in the East Sea worsens and the country's macro economy declines.

Based on the above analysis, Chung said the domestic real estate market showed signs of development in the next few years. Many foreign investors were interested in Viet Nam's real estate projects, providing investment capital of billions of US dollars.

The market has shown signs of recovery and become very attractive due to preferential economic policies created by the State and Government. In addition, the country's rapid urbanisation was predicted to increase in speed by 45 per cent by 2025, demonstrating that demand was still high. The market has developmental potential over the next 10 years, said Chung.

US dollar prices continue to increase in domestic market

Greenback rates kept soaring at domestic commercial banks yesterday, and the gap to the ceiling price set by the State Bank of Viet Nam (SBV) narrowed.

The highest rates were seen at VietinBank, which bought a single US dollar at VND21,575 and sold it at VND21,635, and Techcombank, which listed the buy/sell rates of VND21,555 and VND21, 635 respectively. Eximbank also rated each dollar at VND21,635 on the buying side and VND21,575 on the selling side.

At the same time, Vietcombank listed its buying and selling rates per dollar of VND21,550 and VND21,610 respectively.

BIDV listed each dollar at VND21,570 to buy and VND21,630 to sell, while other commercial banks of ACB, DongABank and Agribank listed buying rates between VND21,545 and VND21,575 and selling rates between VND21,620 and VND21,630.

The rates in the flea market also remained as high as they were in commercial banks. Quoc Trinh Gold and Jewelry Company on Ha Trung Street, which is popular for money exchange in Ha Noi, bought each dollar at VND21,640 and sold them at VND21,670 each yesterday.

As of January 7, the SBV increased the inter-bank exchange rate from VND21,246 to VND21,458 per US dollar. With an effective exchange rate with a one per cent margin, the ceiling rate was VND21,673 per dollar.

Thus, the gap to the ceiling price was only VND40 at the commercial banks and VND30 at the flea market.

Last week, the SBV confirmed that the demand and supply of foreign currency were stable in the market, adding that speculation psychology among the local investors had lifted the rate. The central bank confirmed the rate would not be increased any further for now and that the bank still planned to increase the VND/USD exchange rate by no more than 2 per cent in 2015.

This message was repeated on April 1, but the greenback rates have continued to soar in the local market.

Data from the General Department of Customs said Viet Nam's export turnover had reached $22.97 billion and import turnover had reached $24.18 billion in the first two months. The trade deficit of $1.2 billion was also considered a reason for the soaring prices.

Economist Nguyen Tri Hieu told Infornet.vn that rating up the VND/USD exchange could bring some benefit to local exports, but it would simultaneously have a greater negative impact on the whole economy.

Hieu said the move would negatively influence imports and the macro economy, leading to an increase in the foreign debt of both the government and local enterprises.

Hieu cited an estimate from the Ministry of Investment and Planning which demonstrated that if the rate was stepped up by another 1 per cent, VND10 trillion ($462.3 million) would be added to the public debt. The economist said with the public debt closing in on 65 per cent of the GDP, any increase in debt would be too burdensome on the local economy.

However, Hieu also thought that the SBV should closely watch the forex movement in the country and across the world to consider an increase when it is necessary.

HCM City products on show in Cambodia

Nearly 50 exhibitors from HCM City are showcasing their products at the

Viet Nam-Cambodia Trade-Service-Tourism Exhibition 2015 (HCM City Expo 2015) in Battambang city, 300 kilometres from northwest Cambodia.

At the 80 pavilions, agricultural machinery, processed food, plastic products, and electronic equipment, among others are on display.

The annual event is a venue that provides Cambodian consumers with a range of high-quality products, Vice Chairwoman of the HCM City People's Committee Nguyen Thi Hong, said.

Emerging markets fill Unilever coffers

More than 50 per cent of Unilever's global revenues come from emerging markets, with high growth in markets like India, Turkey, Brazil, and Viet Nam, JV Raman chairman of Unilever Viet Nam, said.

Speaking in HCM City on Thursday at Career Day, held as part of the Unilever Future Leader Program, he said the key to succeed in the Vietnamese market is to grow young Vietnamese talent into business leaders for both Viet Nam and other parts of the Unilever global business through its training programmes.

"Developing human resources is one of the commitments in the sustainable development strategy of the company."

One of these is the Unilever Future Leader Program, a management trainee programme launched in 1998 for graduates with less than one year's experience.

Every year the company recruits 12-15 leaders through the programme for various areas like marketing, sales, accounting, supply chain, manufacturing, and human resources. This year the programme received over 1,500 applications.

Eastin Grand Hotel Saigon opens

The Absolute Hotel Services Group has announced the rebranding of the Movenpick Hotel to the Eastin Grand Hotel Saigon on 253 Nguyen Van Troi Street in HCM City's Phu Nhuan District.

The hotel, which has 268 deluxe rooms and suites equipped with modern amenities, provides large conference rooms with state-of-the-art facilities and dining options.

Special launch rates are US$90++ per room per night, including free wi-fi and other benefits. The offer is valid until June 30.

Eastin Grand Hotel Saigon is part of the Eastin chain of international hotels and residences covering Asia, India and the Middle East. The brand has about 60 properties. 

E-customs system benefits businesses

After one year of application, the Vietnam Automated Cargo and Port Consolidated System/Vietnam Customs Information System (VNACCS/VCIS) has greatly benefited enterprises, especially in saving time for customs clearance, reported the Vietnam Customs.

Data collected at Saigon Port Customs Sub-Department under the Ho Chi Minh City Customs Department in October last year showed that it took 3 seconds averagely to register for customs declaration via VACCS system, and 34 hours to complete all customs clearance procedures for imports, a 18 percent reduction compared to 2013’s figure of 42 hours.

Meanwhile, enterprises spent an average 6 hours for registering and receiving customs declaration for exports, a decrease of 58 percent over 2013’s duration of 16 hours.

According to the Vietnam Customs, one of the breakthroughs of the system is the application of information technology in tax collection with the electronic payment via banks.

Currently, 19 commercial banks have contracted with the Vietnam Customs in electronic tax collection and the number is rising.

The VNACCS/VCIS has also created a foundation for the building of a national “one-stop-shop” mechanism that is expected to bring long-term benefit to enterprises.

The system has now been connected to the Vietnam Customs’ system and is scheduled to be linked with the Ministries of Health, Agriculture and Rural Development and Natural Resources and Environment in June.

The Vietnam Customs also reported that as of March 15, the VNACCS/VCIS, launched in April 1, 2014 as part of a project funded by Japan , has attracted the engagement of 53,200 enterprises. The system helped processed 6.3 million customs declarations with total import-export value of 256.2 billion USD.-

New customs policies introduced to Japanese firms

Japanese businesses were updated on Vietnam’s new taxation and customs policies at a dialogue held in southern Binh Duong province on April 3, which is expected to smooth the way for their operations.

The event was jointly organised by the provincial Department of Customs, the Vietnam Chamber of Commerce and Industry in Ho Chi Minh City and the Association of Japanese Businesses in Binh Duong.

Customs officials explained in detail new points of the new Law on Customs, which took effects as from January 1, 2015, and pointed to common mistakes that businesses often made in using digital signature and declaring customs formalities.

Representative from the Japanese Consulate in Ho Chi Minh City Miyake Taek appreciated the initiative to organise the dialogue, saying that she hopes similar events will be held in the future, bringing practical benefits to enterprises.

Japan is now the largest foreign investor in Binh Duong province, with more than 255 projects worth almost 4.7 billion USD.

Previously, Binh Duong’s Department of Customs also hosted a similar dialogue with over 140 businesses from the Republic of Korea operating in the locality.

Ha Nam firms seek to boost links with Japanese counterparts

Businesspeople of northern Ha Nam province are keen on enhancing cooperation with Japanese firms operating in the locality.

This was the affirmation of Chairman of the provincial Businesses Association Dinh Van Hong during a get-together between the local business community and Japanese investors on March 3.

Hong said the association can serve as a bridge connecting the two sides in the coming time.

He added that the local firms want to know more about Japanese firms’ requirements and standards for goods, in order to make products meeting the Japanese side’s demand.

Representatives from the Japan External Trade Organisation (Jetro) said the meeting contributes to boosting stronger cooperation between Vietnamese and Japanese firms.

At the event, Ha Nam enterprises introduced 20 their products in the fields of construction and agriculture to Japanese firms.

At present, 37 Japanese enterprises are operating in Ha Nam in the fields of motorbike and automobile spare parts production, machinery, liquefied gas, packaging and electronic component.

Kon Tum enters organic business

The construction of a large-scale organic farm began at Dak Long commune, Kon Plong district in the Central Highlands province of Kon Tum on April 3, the first of its kind in the locality.

The project has an investment of more than 60 billion VND (2.8 million USD) invested by Kon Tum Bellest, a joint venture between Vietnam, New Zealand and the Republic of Korea.

The 100ha farm will grow beans and strawberry, with an expected annual output of 45 tonnes of beans and 1,200 tonnes of strawberries.

All organic produce will be checked and accredited by international organisations before being sold domestically or exported.

The project will offer more than 2,000 jobs for local labourers.

Vietnam remains destination of choice for Japanese SMEs

Vietnam continues to be one of the most attractive investment destinations for Japanese small and medium enterprises (SMEs), according to a survey announced by Shoko Chukin Bank on April 2.

The survey covering 3,750 SMEs showed that about 11.7 percent of respondents have invested in overseas markets, mainly in the fields of precision mechanical manufacturing, transportation machinery and information technology and non-manufacturing industries.

Among them, 40.7 percent say they have plans to invest in Vietnam in the time to come.

The survey also showed that China maintains its position as the leading destination for Japanese SMEs, followed by Thailand and Taiwan (China).

According to statistics of the Japanese Business Association (JBA), direct investment from Japan to Vietnam hit 36.5 billion USD by October 2014.

Total Japanese investment capital in Vietnam in the first three months this year reached some 295 million USD for 81 existing and new projects, said an official of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.-

Exports to tackle more challenges this year

The country’s exports in the first quarter of this year grew by 6.9% to US$35.7 billion against the same period of last year.

However, this growth rate was much lower than last year’s level of 14.1% due to export prices decline.

According to the National Financial Supervisory Committee (NFSC), export revenues of key products like cashew nut, coffee, tea, pepper, rice, cassava and cassava products, coal, crude oil, petroleum, rubber and steel dipped 24.4% against last year, which was mainly caused by a prices fall of 2.4%.

Experts forecast that world prices will continue to drop from now to the end of this year, creating more challenges to export businesses.

The high export growth rates in 2013 and 2014 were partly attributed to Samsung telephone exports, but the situation is different this year.

The General Statistics Office of Vietnam (GSO) reported that imports in the review period are estimated at US$37.5 billion, a year-on-year rise of 16.3%, pushing the trade deficit up to US$1.8 billion.

If domestic production rebounds, Vietnam will suffer from import surplus this year as most of raw materials for production and manufacturing are imported, the GSO forecast.

Sacombank receives American Wells Fargo award

The Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has been named a good growth bank in commercial sponsorship activities by the American bank Wells Fargo.

The award is based on criteria in commercial sponsorship transactions including Letter of Credit (L/C) and Usance Payable at Sight Letter of Credit (UPAS L/C) through Wells Fargo.

In a bid to provide high-quality financial products in Vietnam, Sacombank has carried out safe and convenient packages, bringing additional value to its customers.

In 2014, the bank’s international settlements reached over 6.8 billion USD, of which revenue from commercial sponsorship activities generated 2.3 billion USD.

Wells Fargo, founded in 1852, is the fourth leading bank in the US. It currently provides financial services to 70 million customers including individual customers and corporations.

Hanoi supports brand development

Hanoi is currently shaping a 2.8 million VND (130,000 USD) programme to provide support for businesses in their brand development.

Under the programme funded by Hanoi’s Trade Promotion Fund and enterprises, practical training will be offered to local firms on various aspects such as building, designing and promoting brands.

Additionally, they will be advised on developing a brand strategy for a business or product and assisted in marketing activities, such as advertising, building websites, producing publications on businesses and products and organising events.

The city is also accelerating administrative reforms by applying information technology in tax declaration, customs and registration for business establishment in a bid to boost investment.-

Bac Ninh: Foreign investment gains momentum in Q1

The northern province of Bac Ninh licensed 21 new projects worth 31.93 million USD in the first three months of 2015.

An additional 32.8 million USD was added to 15 existing projects, 23.1 million USD of which was recorded in 8 ones in March alone.

As of this March, the province counted 661 foreign-invested projects worth approximately 8 billion USD.

Bac Ninh has strived to develop its hi-tech industry and strengthen connections between local and foreign-funded enterprises.

The local authorities have also held regular meetings with investors to deal with any arising troubles.

This year, the province targets 26 billion USD in export revenue.

Conference discusses self-certification of origin in Vietnam

Self-certification of origin in free trade agreements (FTA) was discussed at a conference held on April 2 in Hanoi, aiming to facilitate trade and counteract trade frauds.

The two-day event, co-hosted by the Vietnam Customs and the United States Agency for International Development (USAID), aims to introduce the system’s operations and gather comments from localities and businesses for developing relevant regulations and guidance.

According to Deputy Director of Customs Vu Ngoc Anh, the system with regulations and examination methods is quite new for Vietnam. However, this is one of commitments the country has to implement when joining international agreements, including the Trans-Pacific Partnership (TPP).

He stressed the development of a legal framework, skills and knowledge to prepare the system’s application and effective implementation.

Deputy Director of the Customs’ Supervision and Management Division Au Anh Tuan stressed the need for training capability among staff involved in self-certification of origin.

Detailed instructions issued by the Ministry of Industry and Trade for the piloted implementation within the ASEAN bloc are also critical, Tuan added.

During the conference, participants heard from experts on the USAID-funded Governance for Inclusive Growth (GIG) project as they shared experience in implementing self-certification of origin in the US—particularly for garments-textiles—and the roles of stakeholders in the process.

Fishermen see high yields in north season

The fisheries sector recorded major catches of 1.3 million tonnes of fish in the 2014-2015 north season, an annual rise of 2.85 percent, as reported at a conference held in the central province of Thua Thien-Hue on April 2.

According to the Fisheries Information Centre, Vietnam’s sea area is divided into four main regions: northern, central, southeast, and southwest. Fishing activities are classified as on-shore and off-shore based on the depth of the sea in each region.

There are two main fishing seasons: the south season (from May to October in the north, and July-December in the south); and the north season (from November to April in the north and January-May in the south).

During the 2014-2015 north season, the Ministry of Agriculture and Rural Development directed fisheries units to pioneer a streamlined tuna production value chain to create high-quality fish products.

Following the success of this model, the fisheries sector looks to implement similar methods in other product lines such as shrimp and octopus.

Apart from setting up dozens of community-based fishing associations and on-shore fishing management systems, localities called for more proactive fishermen involvement in the protection and management of fishing grounds.

Local authorities also enacted major policies to boost seafood development such as investment in aquatic-breeding infrastructure; long-term preferential loan credits for rebuilding and upgrading fishing vessels, and low-interest mobile loan credits for seafood exploitation services; and tax and insurance incentives.

In the 2015 south season, the fisheries sector targeted catching 1,327,000 tonnes of fish.

The General Department of Fisheries asked coastal localities to proactively direct farmers in production and help them address difficulties and cope with complicated weather developments.

Toyota eyes 46,000 car sales in 2015

By launching new brands into the market, Toyota Motor Vietnam (TMV) has set its sights on selling 46,000 cars in 2015, up 13 percent from last year, said TMV General Director Yoshihisa Maruta at a press conference on April 2.

Last year, the company set records by manufacturing nearly 34,800 cars and selling 41,205, an annual increase of 24 percent, he said, underscoring that the results were buoyed by the additional injection of 19 million USD for new car projects and production lines.

TMV raked in 40 million USD from product exports, contributing to increasing its total export value in the past two decades to 286 million USD.

TMV’s major exports, including antennas, exhaust valves and gas pedals, are sold in 13 countries and territories such as Thailand, Indonesia, the Philippines, Malaysia, India, Argentina, South Africa, Taiwan (China) and Greece.

In addition to its business targets, TMV has made contributions of over 700 million USD to the national budget.

A conference on designating ways to improve the competitive competence of enterprises in the Mekong Delta region was convened in the southern city of Can Tho on April 2 by the Can Tho chapter of the Vietnam Chamber of Commerce and Industry (VCCI).

Director of VCCI- Can Tho Vo Hung Dung said the VCCI-Can Tho has implemented supporting programmes for enterprises in manpower training and improving communication in trade relations and foreign investment in a bid to boost local economic development.

The VCCI-Can Tho has helped enterprises to operate effectively by cutting costs and improving quality in accordance with international standards, particularly as Vietnam enters a number of agreements such as the Tran-Pacific Partnership (TPP) by end of 2015 of early 2016, he added.

General Secretary of the Mekong Delta Business Association Nguyen Thi Thuong Linh noted that local enterprises should keep them updated with latest polices and trade agreements that Vietnam signed with foreign organisations and countries.

Additionally, enterprises should intensify the added valued for their products create partnerships, and focus on expanding new market and new product development.

Moreover, Linh requested regional authorised bodies to improve the business climate in terms of administrative reform.

According to the VCCI-Can Tho, over 51,000 Mekong enterprises lack information on trade related policies and laws, international markets, competitive partners and ways to access credits. Unstable raw material sources and rising prices have hindered business development of local enterpriese.

Such reasons caused 1,932 enterprises in the region to dissolve or stay idle in 2014, a 19,8 percent increase from 2013.

Vietjet Air increase Ho Chi Minh City-Bangkok flights

Vietjet Air is set to increase the number of offered flights between Ho Chi Minh City and Bangkok (Thailand) from two to three round trips per day starting from May 18, 2015.

Accordingly, 7,560 tickets each week will offer passengers a more flexible travel schedule and price options.

Vietjet Air will depart from Tan Son Nhat International Airport in HCM City at 08:30, 11:15 and 17:15 local time. Returning flights from Bangkok will be offered at 11:30 , 13:50 and 19:55 local time. The flight duration is around and hour and a half.

Customers can purchase tickets from April 2 through its website www.vietjetair.com , www.facebook.com/ vietjetairvietnam, hotline: 19001886, and its ticket offices nationwide.

As scheduled, Vietjet Air will receive additional aircrafts to meet the increasing travel demand of passengers.

On March 22 the company received an A321 ceo Sharkets at the Tan Son Nhat International Airport, the fifth aircraft from an order of 100 purchased and leased planes from Airbus.

Property market generates new foreign interest

Korean giant Lotte, after inaugurating last September Lotte Center Hanoi, a mixed-use development with offices, a shopping mall, hotels, and apartments, is now eyeing a similar project in Ho Chi Minh City.

With an investment of some US$2 billion, the Smart Complex in HCMC’s new Thu Thiem urban area would be one of its biggest projects in Vietnam.

Lotte is one of several foreign property investors to have recently upped their investment in the country.

Hong Kong’s Sun Wah Group has a more than 40% stake in a multi-million dollar project to build an apartment building complex in HCMC’s Binh Thanh District.

The group is currently the owner of the Sun Wah Tower in HCMC, and the developer of the US$400 million Saigon Pearl residential-commercial complex. It also plans to build an industrial park in Hanoi and a resort in Vinh Phuc Province.

“The economic recovery is a good sign for foreign businesses to expand their investment in the property market,” Pham Sy Liem, deputy chairman of the Vietnam Construction Federation, said.

Vietnam's economy grew at 5.8% last year and the government has stepped up efforts to clean up bad debts in the financial system, some of them tied to property.

Echoing Liem, Nguyen Van Chinh, director of a property firm in Hanoi’s Le Van Luong Street, said: “Inflation rate is manageable and interest rates are reduced, thus people are starting to invest more in properties. You will begin to see the turnaround.”

When the real estate market boomed between 2007 and 2008, it lured half of all foreign direct investment coming into Vietnam. Then the market froze, also becoming less attractive to foreign investors due to the economic downturn in the country in the following years. Many projects had their licenses revoked after construction stalled, while some others proceeded at a snail’s pace.

However, the market is showing signs of recovery with a sharp increase in the number of transactions.

The real estate market saw over 8,000 successful transactions in the first quarter of this year, triple the number in the same period last year, according to the Ministry of Construction.

The bubble of eight years ago is unlikely to recur since the economy is strong this time, Liem said.

Another reason for foreign investors to increasingly enter the sector is a policy change allowing greater foreign ownership of property, Nguyen Huu Cuong, chairman of the Hanoi Real Estate Club, said.

Foreigners with a valid visa and foreign companies and international organizations operating in Vietnam will be permitted from July 1 to buy houses and apartments.

Now only foreigners married to Vietnamese and those deemed to make significant contributions to the nation’s development are allowed to buy houses in the country.

The new rules allow maximum foreign ownership of 30% in any apartment building or 250 houses in a ward.

“It is a very good change of policy, opening up the real estate sector to expats, and creating an image of an opening of the economy to foreign capital,” Liem said.

“It will help attract more FDI in the sector.”

Singapore property developer Keppel Land last July bought an additional 43% stake from a Vietnamese partner in a high-rise building project in HCMC, raising its total stake to 98%.

Linson Lim, president of Keppel Land Vietnam, said: "We remain confident in the long-term growth potential of Vietnam's property market. It has a young and dynamic population and a growing middle-class with strong aspirations for home ownership.”

The high urbanization rate, improving infrastructure and declining interest rates would also support housing demand, he said.

Investors who have done business in Vietnam for many years like Lotte, the nation's biggest fund manager VinaCapital Group, and Indochina Land, a subsidiary of London-listed fund Indochina Capital, have recently expanded investments in property, while new ones like Creed Group have entered the market.

Last December Japanese fund manager Creed announced plans to invest in an apartment project in HCMC. It is expected to put up 80% of the project’s cost of VND1.3 trillion.

Real estate sector ranked second last year, after the processing industry, in attracting FDI. In 2014 it attracted US$2.54 billion, accounting for 12.6% of total investment, according to the Foreign Investment Agency.

The new rules on foreign property ownership come as good news for the real estate market, especially the high-end segment. It could result in an increasing number of foreign customers, Liem of the Vietnam Construction Federation said.

The fact that Vietnam has been listed as one of the top 25 retirement destinations by International Living, an Irish magazine, could also spur demand for housing in the country from foreign nationals, he said.

The magazine’s annual Global Retirement Index is compiled using inputs from its team of correspondents around the world who consider climate, healthcare, cost of living, and other factors to draw up a comprehensive list of the so-called “best bang-for-your buck” retirement destinations on the planet.

It ranked Vietnam 25th with a score of 67 out of 100 possible points.

An Indochina Land spokesperson said the firm has recently received hundreds of letters from foreigners interested in property in Vietnam. They want information about regulations on foreign ownership of property including the possibility of renting out properties.

He said the Vietnam real estate market is highly attractive to both foreign investors and buyers. Most of them prefer high-end apartments of international standard and a full range of amenities in Da Nang and HCMC.

According to the Ministry of Natural Resources and Environment, nearly 800 overseas Vietnamese and foreigners own housing in Vietnam.

The number is small considering that there are some 80,000 expats living and working in the country.

 The automotive industries of Vietnam and Thailand should cooperate for common development rather than competing each others, said President of Thailand Automotive Institute (TAI), Vichai Jirathiyut during the talks in HCM City on April 2.

The talks aimed to increase the production value of Vietnam’s automobiles and motorbikes in the ASEAN region.

Mr Vichai Jirathiyut said Vietnam’s automobile industry has recorded an impressive growth with 120,000 cars last year, up 29% in quantity and 35% in sales turnover.

He expressed wish that Vietnam’s automobile industry will continue to flourish in the future with an estimated quantity of 220,000 cars by 2020 and 1.5 million by 2035. This will help its automobile industry develop rapidly in the ASEAN Economic Community (AEC) which is expected to be established late this year. Moreover, low-cost labour force and the government’s support policies will also facilitate the development of Vietnam’s automobile sector.

Mr Vichai Jirathiyut said that Thai manufacturers have possessed advanced technologies which will benefit Vietnamese producers in the ASEAN market.

However, local analysts and auto businesses worry that Vietnam will become a consumer of imported cars from the region as Vietnam begins to reduce tariffs under the ASEAN Trade in Goods Agreement (ATIGA) commitment.

As the localization rate of auto businesses remains low, ranging between 10% and 30% and import tariffs of completely built unit (CBU) cars are expected to be reduced to zero percent by 2018, cars assembled in Vietnam with imported spare parts will be more expensive than CBUs imported from Thailand and Indonesia.

Hong Kong official urges VN firms to attend trade fairs

Vietnamese businesses should be more proactive in joining Hong Kong's year-round trade events, including exhibitions, the deputy executive director of the Hong Kong Trade Development Council said at a press luncheon in HCM City on Wednesday.

Benjamin Chau, who is visiting the city to meet government officials, trade associations and industry stakeholders, said he hoped to strengthen collaboration between Hong Kong and Viet Nam during his visit.

Chau said that joining fairs would help Vietnamese companies form partnerships and gather the latest market intelligence.

Last year, more than 33,600 exhibitors from 84 countries and regions as well as over 700 buyers from 200 countries and regions visited the Hong Kong council's 30 trade fairs, up 3.4 per cent year-on-year.

However, fewer than 50 exhibitors from Viet Nam joined fairs, while the figure was 500 from Thailand, 800 from Japan and 700-800 from India.

"Vietnamese suppliers should be proactive in seeking buyers rather than letting buyers find them," Chau said. "The Vietnamese businesses often don't take part in fairs again if did not find partners or buyers first time."

However, companies do not go to fairs to just collect orders. They also receive customer feedback that allows them to adjust their price and quality strategies, he said.

Chau said that many international buyers, especially from the EU, had increasingly sought goods from Viet Nam through the council's fairs.

Chau said trade ties between Hong Kong and members of ASEAN, including Viet Nam, had been fruitful for many years and were set to become more robust in future.

In 2014, Viet Nam was Hong Kong's 12th largest trading partners. Total trade between Hong Kong and Viet Nam reached $14 billion last year, an increase of 11.7 per cent from 2013.

Hong Kong's total exports to Viet Nam amounted to $8.6 billion, up 14 per cent. Major export categories included telecommunications equipment and parts, meat products and fruit.

Viet Nam exports to Hong Kong telecommunication equipment and parts, semi-conductors, electronic valves and tubes as well as footwear. The total amount last year was $5.4 billion, up 8.2 per cent.

Pan Food bids for Bibica

The Pan Food Joint Stock Company, a subsidiary of the Pan Pacific Corporation has officially made a bid for more than 4.6 million shares of confectionery maker Bibica.

Pan Food's bid for the shares, which would account for a 29.87 per cent stake, will be valid from April 3 to May 8.

Pan Food has offered to buy each share for VND56,800 (US$2.65) or VND261 billion ($12.2 million) for all the shares.

On the HCM Stock Exchange, each BBC share closed at VND57,500 ($2.72) yesterday.

Currently, Pan Food owns a 21.13 per cent stake or 3.26 million shares in BBC. If the sale is confirmed, it will hold as much as a 51 per cent of the stake and become the biggest shareholder in the confectionery maker.

In the meantime, the biggest shareholder of BBC is the Korean Lotte Confectionery, which owns 44.03 per cent of the stake or 6.79 million shares.

Apart from Pan Food, another subsidiary of Pan Pacific Corporation, Ben Tre Aquaproduct Import and Export Co (coded ABT), holds a 3.58 per cent stake or 553,000 shares in BBC.

The Duong Mat Troi Investment Company also owns a 12.31 per cent stake in BBC.

The Chairman of Duong Mat Troi Investment Company is the brother of Pan Pacific Chairman Nguyen Duy Hung.

According to local media, most BBC stakeholders have no objection to the offer.

BBC is one of the leading confectionery makers in Viet Nam, with popular brands including Hura, Choco Bella, Orienko, Zoo and, OneTwoThree.

Last year, it reported sales of almost VND1.13 trillion ($52.8 million), an increase of 7 per cent over the previous year. Its net profit jumped 27 per cent to touch VND57.4 billion ($2.7 million).

HAGL group gets approval to import sugar from Laos

The Government has made a nonspecific agreement allowing the Hoang Anh Gia Lai Group (HAGL) to import 50,000 tonnes of sugar from Laos at a tax rate of 2.5 per cent.

The group has invested heavily in sugar production in Laos.

The Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade agreed to the quota and submitted a proposal to PM Nguyen Tan Dung for approval.

Earlier, the HAGL Group filed a petition to allow it to import crude sugar from Laos to then process in Viet Nam and finally export to China.

According to commitments made to the WTO, Viet Nam must allow 81,000 tonnes of sugar to be imported as raw material this year. The import quota rises by five per cent a year. The quota started at 50,000 tonnes in 2007 when the country joined the WTO.

Vietnam to outpace most of the world in creating new rich families: study

The number of Vietnam’s rich households with financial assets of US$100,000 to US$2 million is expected to reach 347,000 by 2020, a study shows.

This represents an annual growth rate of 35% from 2014 to 2020, placing Vietnam third among 32 nations covered in the Economist Intelligence Unit research sponsored by Citi.

By 2020, the total financial assets in Vietnam’s rich households should reach $68 billion as each would have the average asset of US$196,000, according to the study.

The study, released in late March, says this group, dubbed “the new wealth builders” or NWB, is the world’s fastest growing wealth segment.

India took the top spot in producing wealthy households as the number of NWB households in this country is expected to jump by 47% in 2014 through 2020, to 4.9 million households each with US$178,000 in average financial assets.

The study predicted robust economic expansion in Vietnam through 2018, at 35%. Analysts foresee a steady acceleration in private consumption growth that will shake off the effects of the spiraling inflation of 2011-2012.

As Asian consumers spend, large populations spur regional economic growth. At present, the number of NWB households in emerging markets is overshadowed by the NWB cohort in developed markets, 97 million versus 171 million, respectively.

But after 2020, emerging market NWBs will outnumber their peers in mature markets, the study said.

"NWBs represent an increasingly important phenomenon in the world economy, driving growth in savings and economic activity more generally,” said Jonathan Larsen, Citi global head of retail banking and head of consumer banking in Asia Pacific. “They are typically self-made, socially conscious and sharply focused on growth.”

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