Vietcombank receives 3 awards from The Asian Banker

     
The Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank) has been honoured with three awards from The Asian Banker at its annual summit held in Singapore recently.

Vietcombank is the only bank in Viet Nam to receive these prestigious awards which evaluated the bank’s achievements in cash management, payments and trade finance.

Vietcombank has bagged many national and international awards. It is expected to become the No 1 bank in Viet Nam in 2020.

In the first quarter of this year, Vietcombank reported pre-tax profit of nearly VND2.65 trillion (US$96.4 million), up 15 per cent year-on-year. The bank aims to grow pre-tax profit by 8 per cent year-on-year to VND9.2 trillion and increasing total assets 11 per cent to VND874.6 trillion in the whole year.

The Asian Banker, the region’s authoritative provider of strategic business intelligence to the financial services community, recognises achievements in the key business and operational areas of the banking industry. The purpose of these awards is to recognise annual achievements and winners in the competition for market share, product and operational excellence. 

HAGL Agrico targets $200m revenue for 2017
     
Hoang Anh Gia Lai Agrico (HAGL Agrico), a subsidiary of Hoang Anh Gia Lai Group, has targeted VND4.5 trillion (US$200m) in total revenue for 2017.

The figure will be half funded by selling fruit products, including dragon fruit, banana and passion fruit, worth more than VND2.57 trillion.

The remaining targeted revenue will come from selling cattle and rubber and oil palm products, which will remain the firm’s core businesses.

According to a company’s 2016 annual report that was recently released, the revenue from selling fruit produces will be recorded in the firm’s earnings for the first time in 2017.

Expected revenue from selling cattle will drop by two-thirds to VNĐ1.24 trillion from last year’s number and that from selling rubber products increased by nearly seven times to VND745 billion, the figures show.

The company will also post a big increase in revenue following the sale of its sugar business to Thanh Thanh Cong Group for $59 million in May.

According to the firm’s chairman Doan Nguyen Duc, HAGL Agrico in 2017 will perform better than in previous years, as the company has gone through its roughest and most difficult period, in which commodity prices remained at very low levels.

The company will also take full advantage of its property and infrastructure to improve the quality and quantity of agricultural products and take part in the value chain between Viet Nam, Laos and Cambodia to export products to overseas markets.

In addition, the company will work with some partners to develop its fruit distribution channel in Viet Nam and set up a company in HCM City to exploit the domestic fruit market.

In 2016, HAGL Agrico earned total VND4.77 trillion in revenue, up 1 per cent from 2015. The company did not meet its targeted number for 2016 as its financial expense occupied a large part in total cost, profit margin of cattle raising business fell and the value of some assets got lower after being re-evaluated.

The company will present its targeted revenue and business plan for 2017 and its performance in 2016 at the upcoming annual shareholder meeting, which is scheduled on June 30. 

CBS to be listed on UPCoM
     
The Cao Bang Sugar JSC (CBS) will list its shares on Ha Noi Stock Exchange’s (HNX) Unlisted Public Company Market (UPCoM) on June 20, with 2.52 million common stocks listed under the stock code CBS and the reference price of VND22,000 (US$0.98) per stock. 

Registered CBS stocks at VND10,000 ($0.44) per share currently have no foreign holder, though the company does not have any stockholding limits for foreign investors.

During its annual general board meeting in late October 2016, CBS approved of the dividend paying method via stocks at 12 per cent and issuance of bonus stocks from sources other than owner’s equity at 28 per cent of the existing stocks. This means shareholders will receive an additional 12 per cent and 28 per cent of their current number of shares, respectively, without change in the company’s total owner’s equity.

According to a CBS’ December 2016 report, the company has successfully issued 720,000 shares including 216,000 dividend paying shares and 504,000 capital raising shares. The total value of increased shares is VND7.2 billion.

At present, the company’s registered charter capital is equal to VND25.2 billion ($1.12 million), of which CBS’ Chairman of the Executive Board Nong Van Lac owns up to 38.5 per cent. CBS also has premium shares valued at VND3.94 billion ($175,422).

By the end of 2016, CBS reported its post-tax income at VND6.57 billion ($293,198), six per cent of which went to paying stocks dividend. It also has short term financial debts of more than VND35 billion ($1.55 million).

CBS plans to increase production until 2020 to an annual average of 110,000 tonnes of sugar.

The company switched to a joint stock company in 2006 from a State-owned entity. It operates in the manufacturing and distributing refined sugar sectors, with additional businesses in construction material and petroleum. 

VNA signs agreement on cyber security
     
The national carrier Vietnam Airlines signed an agreement with the Ministry of Public Security’s Department of Cyber Security to ensure the security of its information system on Tuesday.

Under the agreement, the two sides will check and evaluate the carrier’s security, build measures to discover and prevent cyber attacks and hold training courses.

Speaking at the signing ceremony, head of Cyber Security Department Hoang Phuoc Thuan said cyber security in the world and the region had become more complex, especially in key information infrastructures of countries such as the aviation sector, which uses a lot of information technology.

CEO of Vietnam Airlines Duong Tri Thanh said he expected the co-operation with the Cyber Security Department to help the carrier enhance its operations, cyber security and safety, gaining trust from customers.

On July 29, 2016, the official website of Vietnam Airlines, vietnamairlines.com, was hacked by the 1937CN group. The website was fixed after several hours but the airlines’ customer database was stolen and published online, according to a press release from Vietnam Airlines.

On the same day, cyberspace attacks also occurred at Viet Nam’s two biggest airports – Tan Son Nhat Airport in HCM City and Noi Bai Airport in Ha Noi.

The hackers claimed to be part of the Chinese 1937CN group, one of the biggest hacker groups in the country. The group also hacked Vietnamese and Filipino websites in 2013 and 2015, respectively.

Tech Data to distribute Microsoft Cloud products
     
Tech Data Corporation on June 14 announced that its subsidiary Technology Solutions has become a distributor of Microsoft Cloud solutions in Viet Nam.

It can deliver Microsoft’s entire cloud portfolio and other value-added services.

The announcement came at a seminar on cloud solutions and services organised by Microsoft Vietnam, Technology Solutions Vietnam, and the HCM City Computer Association (HCA).

Vu Anh Tuan, general secretary of the HCA, said: “Many small and medium-sized enterprises use cloud solutions and services.”

Vu Minh Tri, CEO of Microsoft Vietnam, said cloud computing is an inevitable trend and it offers many benefits like helping businesses optimise costs, better connect with customers, allow employees greater flexibility and develop new and efficient business models.

On the occasion, Technology Solutions also announced major support programmes for enterprises that want to use Microsoft Cloud solutions.

Vietnam Airlines offering sales on Hà Nội-Bangkok airfares

Flag carrier Vietnam Airlines is offering sales on flights from Hà Nội to Bangkok, Thailand.

Accordingly, a round-trip airfare from Hà Nội to Bangkok will cost only VNĐ899,000 or US$35, excluding taxes and fees.

The promotional offer can be availed until September 30, and is applicable for departure until March 31, 2018.

Tickets can be purchased through www.vietnamairlines.com, and the airline’s booking offices and agencies nationwide.

Currently, Vietnam Airlines operates three return flights on the route each day. The flights from Hà Nội depart at 8.50am, 12.45pm and 4.05pm and arrive in Bangkok at 11.55am, 3.55pm and 7.05pm.

Việt Nam has been a rising star in Thailand’s tourism source market with arrivals projected to break the 1 million-barrier this year, the Bangkok Post reported.

 “Việt Nam may not be high profile, but it is one of the rising stars in terms of the growth potential,” the newspaper quoted Walailak Noypayak, executive director for Asean, South Asia and South Pacific at the Tourism Authority of Thailand (TAT) as saying.

Meanwhile, Thailand is also one of leading countries in the number of tourists visiting Việt Nam. Some 270,000 Thais visited Việt Nam last year, up 24 per cent year-on-year, according to the Việt Nam Administration of Tourism.

Hanwha Life Vietnam and Shinhan Bank Vietnam sign bancassurance deal

Hanwha Life Vietnam signed a strategic partnership deal on June 13 with Shinhan Vietnam Bank SM that allows Hanwha Life Vietnam to deliver its insurance products through the bank's channels.

Under the deal, Shinhan Bank will become a business partner of Hanwha Life Vietnam to provide the latest insurance products to clients through Shinhan Bank’s distribution networks in Vietnam.

This cooperation is expected to create a comprehensive financial services that brings more values to both parties' customers by leveraging and promoting the advantage of the two leading Korean companies.

As an affiliate of Hanwha Group, one of Korea’s largest business groups, Hanwha Life Vietnam enjoys the advantage of impressive financial strength with nearly US$103 million of charter capital, management experiences and premium quality products and services.

Meanwhile, Shinhan Bank - Shinhan Financial Group, a leading bank in Korea and has been entered Vietnam since 1993. After nearly 25 years of establishment and development, Shinhan Bank has expanded its network throughout the north and the south with 18 branches and transaction offices.

In April 2017, Shinhan Bank announced the agreement to buy ANZ Vietnam’s retail banking. The merger is considered as a big stride for Shinhan Bank in Vietnam as well as a strong impact on the growth of Vietnam's retail banking sector in the future.

Back Jong Kook, chairman of the board of directors cum general director of Hanwha Life Vietnam, said “I believe that the cooperation between Hanwha Life Vietnam and Shinhan Bank Vietnam will help effectively exploit the great potentials and strengths of both parties, thereby creating a competitive advantage in the market. This cooperation will bring advanced insurance products to customers in a more comfortable and professional manner.

Currently, the cooperation with banks, including Shinhan Bank, is a part of Hanwha Life Vietnam’s diversified strategy of distribution channels, make its services more customer-friendly, and spur bancassurance business. Bancassurance is quite new in Vietnam and the potentials are enormous. This promises an important and fast growing sales channel in the future.

Previously, Hanwha Life Vietnam signed a strategic partnership deal with Woori Bank in February this year to push its insurance offerings through this counterparty.

“Shinhan’s goal is  to provide the broadest portfolios and financial solutions for our clients. A part from existing products and services, including credit, cards, and e-banking and others, we now enter into this partnership with Hanwha Life to introduce insurance products as a perfect extension to our financial services, and also to offer customers a viable option that can protect themselves and their families,” said Shin Dong Min, CEO of Shinhan Bank Vietnam.

In the first quarter of this year, Hanwha Life Vietnam finished obtained the momentum for high growth in terms of both sales and business expansion. As a result, Hanwha Life Vietnam achieved VND137 billion (almost US$6 million) annual first year premium (AFYP), up 75 per cent over the same period last year.

Also,  in the first quarter of the year, Hanwha Life recorded a renew premium revenue of VND172.5 billion (US$7.5 million), increase of 61 per cent in compared with the first quarter of last year.

According to the 2016 financial report, Hanwha Life Vietnam wrapped up 2016 with very positive business outcomes. Total premium revenue gained 48 per cent, of which a 41 per cent increase of new policy revenue compared to 2015.

It is also remarkable that 2016 was the first year the insurer made profit after eight years doing business in Vietnam, reporting profit before tax of VND12 billion (US$522,000). Hanwha Life’s total assets as end of December 31, 2016 was VND2.997 trillion (US$130.3 million), a 32 per cent surplus compared to 2015.

Cement exports on the rise

Cement exports resumed upward trend during the first five months of this year after witnessing declines last year, according to the General Department of Vietnam Customs.

Vietnam businesses shipped more than 8.2 million tons of cement and clinker in the first five months of 2017 and received US$288 million, grew 16.6% in volume and 10.9% in value.

Bangladesh and the Philippines were the two biggest importers of Vietnam products, of which Bangladesh made up 3.5 million tons, valuing at US$103 million, and the Philippines accounted for 2.2 million tons, worth US$96.2 million. 

Other import markets included Peru (241,000 tons worth US$11.2 million), Taiwan (349,000 tons worth US$10.3 million), Sri Lanka (332,000 tons worth US$9.6 million), Malaysia, Laos, Cambodia, China, Mozambique and Australia.

Last year, Vietnam exported 14.7 million tons of cement and clinker valuing at US$561 million, which marked 7.1% decline in volume and 16% decline in value.

Ninh Thuan seeks investments in renewable energy, marine economy

In 2017, the south central coastal province of Ninh Thuan is focusing on luring capable and strategic businesses and investors in the two key sectors of renewable energy and marine economy.

Incentives in terms of finance, land, taxes and infrastructure have been offered to investors, particularly those operating in wind and solar power, sea-based economy, tourism and agriculture.

The province has instructed sectors to promptly revise relevant legal documents while applying information and communication technology in management and offer online services to create favourable conditions for investors.

Dialogues have frequently been conducted to address difficulties facing investors during the implementation of their projects.

Director of the provincial Department of Planning and Investment Pham Dong said the Ninh Thuan Economic Development Office has been put into operation to provide “one-stop” administrative services for investors. The move has helped shorten time for granting business registration licences.

Since 2016, the province has granted investment plan decisions to 18 projects, worth a total of VND3.36 trillion (US$147.8 million), and approved investment venues for 20 projects, worth VND15.1 trillion (US$663.7 million).

A number of big projects include Phuoc Huu – Duyen Hai Wind Power Plant worth VND1.26 trillion (US$55.4 million); white-legged shrimp production centre worth VND70 billion (US$3.08 million); Dam Nai Wind Power Plant worth VND1.52 trillion (US$67 million); and a beeves and cows farm worth VND250 billion (US$11 million).

Currently, the province is home to 292 projects, including 30 foreign direct investment projects, with a combined registered capital of VND59.85 trillion (US$2.63 billion).

Vietnam studies int'l experience in building facilitating State

The Ministry of Planning and Investment and the World Bank Group co-organized an international workshop on “Economic Governance for a Facilitating State” in Hanoi on June 13.

The event aims to share international experience on re-defining the role of the State in economic management and improving institutions for a State facilitating sustainable development and more prosperity.

Deputy Minister of Planning and Investment Nguyen The Phuong said the Vietnamese Government always seeks to reform and concretize its policies to develop the country.

Building a capable and accountable State is both a task and a target in order to help the country overcome challenges, but it is not a simple task, he said.

Sharing the report on Vietnam’s roadmap to 2035, former Minister of Planning and Investment Bui Quang Vinh said Vietnam is lagging behind in terms of income and economic scale.

The country is listed among top 10 countries having the lowest State accountability. Its ranking in term of state governance is also low compared to the level of income. 

Economically, after 15 years, the total gross domestic product (GDP) of Vietnam increased by US$160 billion while that of Thailand and Indonesia were US$270 billion and US$700 billion, respectively.

Vinh suggested enhancing the State capacity and ensuring the market principle in decisions issued by the State, at the same time improving assurance of property rights, encouraging competition, limiting the State’s direct interference and improving the effectiveness of State management of economic activities. 

He recommended expanding the participation of all economic sectors in the provision of public services. The State should play the role of a supporter and provider in this field.

During the conference, participants also discussed how to improve the governance efficiency of the government, reform State-owned businesses, facilitate the development of the private sector, among other issues.

Deputy PM pushes for sustainable Son Tra tourism development plan

Deputy Prime Minister Vu Duc Dam said the controversial Son Tra tourism master plan should be halted if it is not a sustainable development during the NA question and answer session on June 13. 
  
Dam said it was an important issue and that he has heard many people asking about this project. However, the Ministry of Culture, Sports and Tourism and Danang City People's Committee haven't provided any official answer on environmental issues.

According to the Law on Tourism, the prime minister will review the country's general tourism development plan including a list of urban areas and sites of all scale that have potential to be the national tourism sites. Danang is a tourist city, which includes the popular tourist destinations of Ba Na and Son Tra.

The law states that national tourism sites must be over 1,000 hectares, welcome one million visitors a year and have accommodation. 

The authorities started making the development plan in 2013 and made a public announcement on February 15. After the plan was criticised by the Danang Tourism Association, Dam said the prime minister had asked the ministry and authorities of Danang City to reconsider the opinions.

"After reading the plan and working with the architects, I decided that in order to gather opinions fairly, the plan should be halted," he said.

Dam assured that they had consulted many experts to ensure all tourism development and environmental conservation aspects. 

In 2013, Son Tra has 4,439 hectares of natural area, yet Danang authorities gave approval to 18 projects with 5,049 rooms. The ministry said they would cut some projects to reduce the number of rooms to 1,600. According to Dam, experts and architects determined that 1,600 to 3,200 rooms were a reasonable number that could ensure both tourism development and environment conservation. 

Even though Danang authorities disagreed with Danang Tourism Association's opposition to developing Son Tra, Dam still asked them to co-operate in order to reach a better solution and agreement on two issues. Firstly, their principle is sustainable development and that if all factors were not satisfied, it would be better to halt the plan. Moreover, Son Tra hasn't contributed much in the way of tourism so halting the plan wouldn’t cause many problems. 

After working with investors and Danang Tourism Association, if Danang’s authorities want to scale down the plan, then the government will approve. Even if the authorities don't want to develop tourism yet and ask to be removed from the list of potential locations for national tourism sites, the government would also give approval. The plan needed consensus from the authorities, investors and the people in Danang to work.

Trung Nam Group to join renewable energy sector

On June 10, Trung Nam Construction Investment Corporation (Trung Nam Group) and Trung Nam Wind Power Joint Stock Company signed contracts with partners to implement wind and solar power projects in the central province of Ninh Thuan.

The future partners of Trung Nam Group in these projects are prestigious contractors in and outside the country, including Lilama 45.3 Joint Stock Company, Green Cosmos Marketing Pte Ltd., and especially Enercon and Syntegra Solar, two giants specialising in wind and solar power equipment provision.

Nguyen Tam Tien, general director of Trung Nam Group, noted that the collaboration with these two energy giants from Germany proves the high determination of the investors to implement the projects. According to him, the investors have rejected out-dated technologies from several foreign countries and levelled up the quality of investment package with high initial installation costs.

“These two Germany-based contractors are considered the Mercedes of the wind and solar energy industry due to their certified reputation. With the high quality, low-cost operation, long-term insurance, and high performance offered by the contractors, Trung Nam Group believes that the projects will efficiently come into operation and contribute to the budget of Ninh Thuan after their first phase is completed next year,” said Tien.

The collaboration of Trung Nam Group with Enercon and Syntegra Solar is expected to exploit the potential and advantages of Ninh Thuan in wind and solar power sectors. It also marks a milestone in bilateral economic partnership between Vietnam and Germany, paving the way for future collaboration in renewable energy development.

The construction of the Trung Nam wind power plant began in August 2016 with the total investment of VND3.96 trillion ($174.5 million). The factory is set to have a capacity of 90-100 MW, generating 286 million kWh of energy. Phase I of this project is scheduled to be completed in the third quarter of 2018, while phase II will be finished in the second quarter of 2019.

Trung Nam Group is also conducting a feasibility study of a solar power project as part of the wind power project. The company said it may develop a 515 MW solar power project in Ninh Thuan.

Wind and solar power projects carried out by Trung Nam Group are expected to set the foundation for future integration projects in renewables in Ninh Thuan. Besides, according to investors, these projects will encourage other national and international investors to take advantage of renewable and clean energy in order to reduce environmental pollution caused by fossil fuel usage, and to support the model of energy usage provided by the Vietnamese government.

Vietnam present at EXPO Astana 2017

Vietnam is attending EXPO Astana 2017, an international expo taking place from now until September 10 in Astana, Kazakhstan.
With the theme “Future Energy”, the expo gathers 115 countries and territories to introduce their beauty, potential, and initiatives in using power sources for sustainable development. Vietnam will display photos and videos depicting its beautiful landscapes and rich culture and introduce the richness of the Mekong Delta.
Many traditional Vietnamese arts programs from the Vietnam Music Academy and Vietnam Puppetry Theatre will also be introduced at Vietnam Exhibition House during the three-month event, and visitors will also have the chance to see Vietnamese landscapes, traditional tourism products, craft villages, and handmade products.
Various problems caused by climate change in the country will also be shown, with calls made for international cooperation in creating a better future. Displays will include solutions for future power sources, like wind and solar.
Around 900 international visitors and Kazakh people visited Vietnam Exhibition House on the opening day.
The 2017 expo includes other activities on the sidelines, such as cultural exchanges, art performances, and conferences.

Domestic firms' 5M trade deficit at $9.31 billion

While foreign-invested enterprises (FIEs) continued to record a trade surplus in the first five months of this year, domestic enterprises saw a trade deficit of $9.31 billion, contributing substantially to Vietnam’s overall trade deficit of $2.7 billion in the period.
According to the General Department of Vietnam Customs, total trade turnover in May was $36.39 billion, up 4.3 per cent compared to April. Export turnover was $17.93 billion, up 2.3 per cent, while import turnover was almost $18.46 billion, up 6.4 per cent.
Trade turnover was $162.45 billion in the first five months, a 21.5 per cent increase year-on-year.
Total trade turnover among FIEs in the period was $106.5 billion, 23.7 per cent higher year-on-year. Export turnover neared $56.66 billion, up 20 per cent, or $9.45 billion, year-on-year, while import turnover was over $49.84 billion, up 28.1 per cent, or $10.94 billion, year-on-year.
While FIEs recorded a trade surplus of $6.81 billion, domestic enterprise recorded a deficit of $2.13 billion in May and $9.31 billion during the first five months.
China continued to be Vietnam’s largest trading partner, with turnover reaching $32.76 billion in the first five months, a 23.6 per cent increase year-on-year. South Korea followed, with $23.94 billion, up 45.2 per cent, then the US with $19.96 billion, up 12.9 per cent, and the EU with $19.66 billion, up 13.3 per cent.
Of Vietnam’s ten largest trading partners, it only recorded a trade surplus with three: the US ($12.07 billion), the EU ($10.03 billion), and Japan ($152 million). The trade deficit with South Korea was quite high, at $12.96 billion, and was $11.5 billion with China and $3.9 billion with Taiwan.
Export turnover of ten key goods (phones and accessories; textiles and garments; computers, electronic products and accessories; footwear; machinery and equipment; wood and wooden products; seafood; means of transport and components; coffee; and textile yarn) was $57.37 billion in the first five months, accounting for 71.7 per cent of the total. Seventeen of 46 types of exported goods recorded over $1 billion in export turnover.
Coal saw the highest increase, of 4.5-fold year-on-year. Steel and iron increased 61.9 per cent, rubber 61.6 per cent, fertilizer 51.1 per cent, and computers, electronic products and accessories 46.7 per cent. Conversely, gems and precious metal products fell 47.3 per cent and pepper 16.1 per cent.

VNG targets higher pre-tax profit this year

VNG has set a high pre-tax profit target for this year, of VND908 billion ($40 million), and will continue to not pay dividends to shareholders.
It will hold its annual general meeting (AGM) on June 22, to officially announce its 2017 plans.
This year and in coming years, it will continue to develop key business lines and expand and develop Zalo products and online payment services.
VNG’s business plan has sales and profits growing at over 30 per cent. Revenue is estimated at VND3.96 trillion ($174.42 million), up 31 per cent year-on-year, while the pre-tax profit target of VND908 billion ($40 million) is up 34.7 per cent.
If the goal is reached, it will be less than its pre-tax-profit in 2012 of VND1.03 trillion ($45.36 million).
VNG recorded net revenue of VND3.02 trillion ($133.02 million) in 2016, an increase of 45 per cent against 2015 and 18 per cent higher than targeted. Pre-tax profit was VND673.7 billion ($29.67 million), 2.18-times higher than in 2015 and 2.35 times higher than planned.
Though results have exceeded plans, VNG has not paid dividends to shareholders, so it can reinvest in strategic products.
In 2016, VNG's OTT Zalo took part in a vaccination project in Vietnam. In a letter addressed to company staff at the end of May, Chairman and CEO Le Hong Minh said that VNG will try to improve online payment service products and the user experience.
VNG is a private enterprise operating in the field of technology. Foreign investors currently own 44.64 per cent of charter capital and come from Singapore, Luxembourg, China, the US, and Canada.
It signed a memorandum of understanding on May 30 with NASDAQ regarding the listing of its shares, during Prime Minister Nguyen Xuan Phuc’s visit to the US.
  
CBRE Vietnam to manage Sun Square in Hanoi

CBRE Vietnam has signed an agreement with Urban Infrastructure Development Investment Corporation (UDIC Thang Long) to manage the latter’s commercial and condominium project, Sun Square.
The project is located at the intersection of Le Duc Tho and Nguyen Hoang, one of the most strategic positions in Hanoi’s My Dinh area.
Sun Square features two 17-story office blocks, two 34-story residential towers, and a two-floor podium, which will boast well-known brands such as Highlands Coffee, ApaxEnglish, O’leary Restaurant, BIDV, Vinmart, and Dingtea.
“CBRE Vietnam is proud to become the management service provider for Sun Square, which was developed by the prestigious Hanoi developer UDIC Thang Long,” said Ms. Nguyen Bich Trang, Director of CBRE Hanoi. “Sun Square is expected to be one of the most outstanding projects in the My Dinh area.”
Together with the outstanding amenities in the project, residents and tenants will benefit from a convenient and modern living environment.
“We aim to create a civilized and high quality living and working environment for both residents and tenants,” said Mr. Tran Quoc Trung, Director of UDIC Thang Long. “After a careful selection process, we decided to choose CBRE Vietnam to provide professional management services for Sun Square and believe that the high management quality it provides will add value to the whole project.”
With experience in managing many large projects, CBRE will ensure the project’s utilities operate synchronously with its infrastructure.
According to Mr. Trung, Sun Square’s integrated system of utilities and infrastructure is the basis for a sustainable living environment that is comfortable for residents and adds value to the project. However, to ensure that these utilities operate in a uniform manner and the infrastructure is in the best condition, the project requires a seasoned management unit. Therefore, the developer selected CBRE, because of its many years of experience as a management agent.

Savills: Property market active in Q1

Vietnam’s real estate market saw dynamic investment across many segments in the first quarter of 2017, according to the latest report from Savills.
One of the most significant deals was the acquisition of a 0.6 ha commercial site in a prime location in Ho Chi Minh City’s CBD by CapitaLand, to build their first international Grade A mixed-use project in Vietnam.
The project will receive disbursements from a $500 million fund targeting commercial assets in Vietnam set up by the Singaporean developer in November last year.
CapitaLand also announced the acquisition of a 90 per cent stake in a 0.8 ha project in District 2’s Thao Dien, one of the most sought-after residential addresses in Ho Chi Minh City, to develop over 300 residential units.
This was in line with its strategy to expand its residential development portfolio in the country.
The report also noted that another Singaporean developer, Keppel Land, paid VND846 billion ($37 million) to increase its stake by 16 per cent in its mixed-use Saigon Centre project, located in the heart of Ho Chi Minh City.
Among major activities, in March, Hongkong Land became a strategic partner of the HCMC Infrastructure Investment JSC (CII) in the development of residential projects in the locally-listed firm’s land portfolio, including several hectares in the Thu Thiem New Urban Area.
In another popular residential area of the city, An Gia Investment and the Creed Group from Japan continued to acquire the remaining five apartment blocks of the La Casa project in District 7 from the Van Phat Hung Group, for VND910 billion ($40 million). 
In the hospitality sector, the Malaysia-based Berjaya Land has locked in the disposal of its 70 per cent stake in a four-star resort property on Phu Quoc Island to Sulyna Hospitality for a total of $14.65 million.
The report said that rapidly rising numbers of tourists in Vietnam are providing a huge boost to the hospitality sector. The tourism sector got off to a positive start this year, with approximately 3.2 million international arrivals in the first quarter, an increase of 29 per cent year-on-year.
This follows a record number of tourists, of over 10 million, arriving in 2016, and the country is expected to welcome 11.5 million international tourists this year. Coastal destinations play a key role in drawing in the majority of these visitors from a broad cross-section of source countries.
Vietnam is working towards fully harnessing its rich tourism potential in the years to come, as development of the tourism industry has now been made the Number 1 priority of the government.

Vietnam’s 5-month garment and footwear exports bring in US$15 billion

Vietnam’s combined clothes and footwear exports brought in over US$15 billion in the first five months of 2017, according to the General Department of Customs.

The latest figures show that garment exports in May rose 2.9% from the previous month to US$1.93 billion, raising the sector’s total export value for the first five months of the year to US$9.39 billion, up 9.1% compared with the same period of 2016.

The major markets of Vietnamese garment products over the last five months were the United States, the European Union and Japan, whose respective import values were US$4.58 billion, US$1.3 billion and US$1.14 billion.

The sector has set a growth target of 6.5-7% this year, seeking to generate over US$30 billion, compared with US$23.8 billion in 2016.

During the same period, revenues from footwear exports increased 12% to US$5.65 billion, with the United States being the largest buyers at US$1.99 billion, followed by the EU and China, with US$1.8 billion and US$418 million respectively.

Last year, Vietnam’s footwear exports reached more than US$13 billion and the figure for this year is projected to rise by 10% to an estimated US$18 billion.

In the first five months of 2017, the combined revenues from clothes and footwear exports accounted for nearly one fifth of Vietnam’s total exports.

Concerted measures needed for private sector to truly flourish

The Party Central Committee’s recent adoption of a resolution on making the private sector a key driver of the economy reflects the Communist Party of Vietnam’s correct evaluation of the role of private businesses in the next phase of national development.

The resolution is particularly significant as it comes at a time when Vietnam is seeking to renew the growth model, restructure the economy, foster industrialisation and build an economy which is actively integrated into the global economy.

A crucial change in mind-set

In recent years, the attitude towards the role of the private sector has become increasingly positive. Specifically, the Party’s view on the private sector has changed from stifling its growth and disproving its existence in the past to gradually accepting it ever since the 6th Congress and considering it as a key driver of the economy as enshrined in the 12th Congress’s key documents.

Most recently the Central Committee has issued a separate resolution on continuing to revise mechanisms and policies to encourage and facilitate the growth of the private sector, with many important measures taken such as creating a conducive environment in terms of economic institutions and social sentiment; refining land, credit and labour policies and supporting training, transfer of technology and access to market information.

Furthermore, the laws and policies on economic development and the private sector in particular have also been continually promulgated and updated in accordance with the specific conditions of each period. A number of notable documents include the 2013 Constitution which stipulates that the rights of private owners are protected by law, including the Enterprise Law and other documents guiding its implementation which create the legal framework for the establishment and operation of enterprises and various laws concerning land, banking, credit institutions, competition and trade, among others, which create a favourable business environment for private businesses.

Many specific policies, especially those supporting the private sector, have also been issued and implemented such as a government resolution on assisting small and medium-sized enterprises, and various programmes concerning credit guarantee, market expansion support, training and technology development.

Over the past years, the private sector has made significant strides in its development and made substantial contributions to the country’s socio-economic development. The number of newly established enterprises has risen quickly over the years, reaching one million during the 2000-2017 period, 22 times higher compared with total figures in the nine years from 1991 to 1999 when the Company Law and Law on Private Enterprises were first enacted.

The contribution of private businesses to GDP is the highest among economic sectors, estimated at 40% while its contribution to the State budget also increased from 7.4% in 2005 to 12.8% in 2014. Furthermore, the private sector which includes enterprises and individual household businesses is employing about 85% of the country’s workforce, with private enterprises creating 1-1.5 million jobs each year. The sector has also mobilised increasingly greater resources for socio-economic development, with its share of total social investment rising from 22.9% in 2000 to 38% in 2005 and 38.7% in 2015.

Remaining hurdles

Despite its remarkable growth in recent years to become a significant contributor to the economy, the proportion of the sector in GDP remained largely unchanged during 2005-2015 period. In addition, the majority of private enterprises are small and ultra-small businesses having capital of less than VND1 billion (US$44,000). The sector’s other weaknesses are found in the limited levels of technology and workers’ capacity, low productivity, poor product quality that fails to meet market demands, especially those of developed economies, the inability to participate in production networks and value chains. The competitiveness of private businesses is also limited when Vietnam has no enterprises capable to compete with big rivals on the international market.

Such weaknesses are caused by the existence of many obstacles which are impeding the growth of the private sector. In particular, there remains a discriminatory attitude towards the private sector, especially among those working in government agencies, who usually fail to fulfil their facilitative role and even cause inconvenience to private businesses.

Moreover, with an incoherent legal system, a truly favourable environment for the private sector to grow has yet to be created and policy risks to business activities remain significant. The enforcement of laws and policies is also not as effective as expected. A number of important markets such as financial-monetary, commodity, science-technology and land markets has yet to meet the requirements of economic development in general and the private sector’s growth in particular. Another hurdle is the cost of doing business, which remains fairly high in Vietnam.

Therefore, in order to help the private sector to make significant breakthroughs and become a major driver of the economy, first it is necessary to change the mind-set on the role of private businesses. Second, it is an imperative to continue fine-tuning the legal framework and supportive policies with a focus on institutional reforms to boost private investment. The third group of measures includes building infrastructure systems, increasing access to resources, modernising technology, strengthening human resources and developing market factors necessitating the development of the private sector. At the same time, it is essential to change the role of State agencies from being over-controlling to supportive to private businesses, helping them to reduce production and compliance costs.