Seven-month state budget collection up 11.6 percent

The State budget total collection in the first seven months of this year was estimated at 666.68 trillion VND (about 29.36 billion USD), an increase of 11.6 percent over the same period last year.

The amount is equivalent to 55 percent of the whole year’s estimates, according to the Ministry of Finance. 

In the reviewed period, the domestic collection reached 532.5 trillion VND (23.45 billion USD), up 9.4 percent, accounting for 53.8 percent of the year’s estimates.

The budget’s revenues from crude oil and import-export activities were over 27 trillion VND (1.18 billion USD) and 165 trillion VND (7.26 billion USD), up 16 percent and 8.9 percent, respectively.

According to the ministry, 43 out of 63 provinces and cities collected 56 percent of their estimates upwards.

Meanwhile, the total budget spending was 695.16 trillion VND (30.62 billion USD), up 8.7 percent year on year. Of which, the budget investment for development was 119.36 trillion VND (5.25 billion USD) in the reviewed period, up 15.1 percent year on year.

Hau Giang province works to attract Korean investment

The Mekong Delta province of Hau Giang held a workshop in Gwangju city, the Republic of Korea (RoK) on August 4 to call for the Northeast Asian country’s investment in the fields it is prioristing.

Chairman of the Hau Giang People’s Committee Lu Van Hung highlighted his province’s natural and social advantages, noting that aside from the Government’s incentives for foreign investment, Hau Giang pledges to create more favourable conditions for foreign investors, especially those from the RoK.

The RoK is an important partner of Vietnam as well as Hau Giang since it is an agricultural products importer and also a supplier of production, processing and preservation technologies and machinery for the province.

Officials from the Vietnamese province introduced prioritised projects that need investment, including those in high technology, agriculture using bio-technology, and tourism.

As both Hau Giang and Gwangju boast strength in agriculture and processing, the two sides can easily have a common voice in cooperation activities in the time ahead, they said.

At the workshop, representatives of RoK businesses raised questions to learn more about Hau Giang’s incentives and natural conditions. They valued the province’s human factor in investment attraction efforts.

The two sides affirmed that they will keep contact to step up investment and cooperation in the coming time.

During their trip to the RoK, the Hau Giang delegation signed a cooperation agreement on enhancing the province’s relations with the Vietnamese people association in Gwangju, where about 15,000 of the 150,000 Vietnamese in the RoK are living.

PetroVietnam produces 9.23 million tonnes of oil in seven months

The Vietnam National Oil and Gas Group (PetroVietnam) produced 9.23 million tonnes of oil in the first seven months of 2017, the group reported to Prime Minister Nguyen Xuan Phuc in Hanoi on August 5.

The group’s total revenue in January-July reached 278.5 trillion VND (12.25 billion USD), surpassing the seven-month target by 14 percent and fulfilling 64 percent of the yearly goal.

PetroVietnam actively implemented science-technology and training activities as well as ensured oil and gas security and safety, environmental and labour safety.

The prevention of fire at oil and gas facilities was seriously controlled while social welfares were carried out.

The group strives to produce at least 13.28 million tonnes of crude oil and 10.61 billion cubic meters of gas in 2017 and keep a close watch on oil prices to promptly cope with any fluctuations.

It will also focus on safe and stable operation of oil and gas plants in addition to speeding up investment and prioritising capital for projects completed in 2017.​

At the working session, Prime Minister Nguyen Xuan Phuc recognised the group’s contributions to affirming national sovereignty and increasing the State budget.

He urged the group to speed up restructuring, reorganising production, and improving management in order to achieve its goals set for 2017 and following years.

SCIC to divest 3.33 percent stake in Vinamilk

The State Capital Investment Corporation (SCIC) will sell 48.33 million shares or 3.33 percent of its stake in the Vietnam Dairy Products JSC (Vinamilk) in October, SCIC Chairman Nguyen Duc Chi said.

Speaking at a press conference held in Hanoi on August 4 on the corporation’s divestment plans, Chi said this is part of the 3.6 percent of the charter capital remaining from the offering in late 2016 when it planned to sell 9 percent of stake.

With 3.33 percent of the stake to be sold this time, the State will hold 36 percent of shares in Vinamilk.

Details of the offering will be published as soon as possible, Chi said, adding that SCIC will cooperate with Vinamilk to introduce investment opportunities for domestic and foreign investors.

Workshop backs SMEs in loan access, payment in foreign trade

A workshop took place in northern Hai Phong city on August 4 to provide information on loan access and methods of payment in international trade for small- and medium-sized enterprises (SMEs).

The event, held by the Ministry of Industry and Trade’s Vietnam Trade Promotion Agency (Vietrade), forms part of a three-year project funded by Swiss State Secretariat for Economic Affairs (SECO) to enhance capacity of SMEs in Vietnam via local trade promotion agencies which started in 2013.

Speaking at the workshop, Vietrade Deputy Director Do Kim Lang said globalization and free trade have motivated robust development of exports and imports, however, many Vietnamese SMEs are not familiar with accessing loans from banks for foreign trade activities.

Statistics show that SMEs with revenues of less than 20 billion VND a year accounted for about 70 percent of more than 700,000 companies across the country. They have found it hard to access to formal loans, instead many of them have sought funding from informal sources, Lang noted.

Deeper global integration is likely to come together with increase in bad debts and risks in payment if the firms do not actively update themselves with knowledge and learn from others’ experience in international trade, he warned.

To help the firms solve the problems, the workshop focused discussion on finance management in foreign trade, financial solutions and methods for accessing loans, several outstanding financial solutions for Vietnamese exporters, risks in international payments and how to minimize them, and more.

BIDV earmarks 10 trillion VND as loans for SMEs

The Bank for Investment and Development of Vietnam (BIDV) will earmark at least 10 trillion VND (434.7 million USD) as loans for small- and medium-sized enterprises each year, said BIDV General Director Phan Duc Tu. 

He made the statement at a ceremony in Hanoi on August 3 to sign a comprehensive cooperation agreement between BIDV and the Vietnam Association of Small and Medium Enterprises (VINASME). 

Tu said the bilateral cooperation is expected to contribute to creating 1 million businesses by 2020 in line with the government’s Resolution No.35. 

Accordingly, BIDV pledged to offer the best banking services to VINASME members, assist VINASME in building schemes regarding SMEs development, and provide consultancies to improve corporate capacity towards building a strong, transparent and healthy SME community. 

The same day, BIDV launched the 10 trillion VND credit package with preferential rates to VINASME members and qualified SMEs. 

As of June 30, BIDV recorded a total asset of over 1.1 quadrillion VND (48.4 billion USD), 200 SME clients with debt balance of nearly 200 trillion VND, or 23 percent of the BIDV’s total loans and nearly 16 percent of the total debts incurred by SMEs nationwide.

Dak Lak – attractive destination for RoK investors

The Central Highlands province of Dak Lak has attracted many official development assistance (ODA) and foreign direct investment (FDI) projects as well as non-governmental assistance, including funds from the Republic of Korea (RoK). 

The provincial Department of Planning and Investment reported that Dak Lak now houses three ODA projects valued at a total 12.5 million USD funded by the Korea International Cooperation Agency.

Two other projects worth 47.3 million USD cover food, cosmetics and medicine production and solar power. 

Dak Lak recently held an investment promotion seminar in the RoK’s Joellabuk province with more than 40 businesses participating. 

During the seminar, Solarpark Global I&D of the RoK inked a memorandum of understanding with Dak Lak on a solar power project, and asked for the province’s licence to carry out another project worth 45 million USD. 

RoK firms have also invested in education, water supply and waste collection and treatment in Dak Lak.

Such projects have helped the locality improve its infrastructure and reduce poverty, especially in remote, far-flung and ethnic minority-inhabited areas. 

The province wants RoK investments in high-tech agriculture, with priority given to projects in Ea Kpam commune and Ea Pok town in Cu Mgar district, and Ea Tu and Hoa Xuan communes in Buon Ma Thuot city. 

In the first six months of this year, Dak Lak lured 29 investment projects, with total registered capital exceeding 1.47 trillion VND (64.68 million USD), five more projects and 2.8 times the value year-on-year.

The province also attracted one FDI project worth 45 million USD in the period, raising its total FDI projects to 12.

The FDI projects came from the UK, Singapore, Japan, the Netherlands, France, Thailand and the RoK.

The province has called for more foreign and domestic investment in hi-tech agriculture, processing industry, post-harvest agro-forestry-fishery preservation and large-scale livestock farms in tandem with food processing, renewable energy development and support industry.

Dak Lak has offered tax and land incentives for investors, particularly those investing in agriculture and rural areas.

It has also continued to complete administrative reform to create a favourable investment climate.

VNAT, VNPost partner to promote Vietnam’s tourism

The Vietnam National Administration of Tourism (VNAT) of the Ministry of Culture, Sports and Tourism and the Vietnam Post Office Corporation (VNPost) of the Ministry of Information and Communications signed a cooperation agreement in Hanoi on August 4 to promote Vietnam’s tourism at home and abroad. 

Accordingly, Vietnam’s tourism will be promoted via products and services such as stamps, postcards, envelopes and calendars. 

The VNPost will assist VNAT in surveying tourism markets while providing post services, receiving and transferring the results of administrative procedure settlement to VNAT, relevant departments and travel agents. 

Speaking at the event, VNAT Director General Nguyen Van Tuan said VNAT will order 1,000 stamps as souvenirs to visitors, and the two sides will choose 1,000 – 1,500 out of over 10,000 post offices nationwide to distribute free tourism promotion information to domestic and foreign tourists. 

VNAT will also encourage foreign travel operators to add post offices with attractive landscapes and architecture into tour destinations, making it easier for tourism marketing. 

Last year, Vietnam greeted over 10 million foreign visitors, up 26 percent from 2015 and doubling 2010’s figure, earning 417 trillion VND (18.13 billion USD).

In the past seven months of this year, tourist arrivals in Vietnam surged 28.8 percent to 7.25 million, bringing nearly 307 trillion VND (13.34 billion USD) to the country, marking a 26 percent increase.

Vietnam expands fruit and vegetable export market

Vietnam earned US$3.11 billion from exports of agro-forestry-aquatic products in July alone, bringing the total export value to US$20.45 billion so far this year.

Key farm produce has raked in almost US$11 billion, up 18% against last year. Coffee and cashew nut exports showed  stable growth in the period, while vegetable and fruit exports moved up to the third ranking behind aquatic products and forestry products. 

By mid-July, fruit and vegetable exports totaled more than US$1.8 billion, of which fruit exports made up a majority. Blue dragon exports topped the list making up half of the total fruit export value. 

Litchi exports recorded a remarkable growth. Bac Giang province, a center of litchi production, has improved the quality of the local specialty to penetrate demanding markets like the US, the EU, Japan, the Republic of Korea, and Australia. 

Truong Van Thai, Deputy Chairman of Bac Giang’s People’s Committee, says:

“To avoid a common problem – falling prices when farmers produce a bumper crop - Bac Giang has zoned litchi-growing areas covering between 29,000 and 30,000 hectares. It has also increased the application of technology and safe production techniques, improved product quality, and studied consumer markets. Bac Giang has stepped up trade promotion, sought new markets, and linked processing and distribution to stabilize output and prices.”

So far this year, Vietnam has shipped nearly 15,000 tons of fresh litchi to China and another 13 tons were exported to Australia.

Since early July, Luc Ngan litchi has been available in supermarkets in Thailand, one of the 5 largest fruit exporters in the world.

Tran Thanh Hai, Deputy Director of the Import-Export Department of the Ministry of Industry and Trade, said “Businesses need to pay more attention to promotion and brand building, the key to market growth. Nobody, including the state, can do this task for enterprises. What the state can do is to provide guidance, direction, and support for businesses. They should learn, build their own brands, and develop markets by themselves. But the point is that Vietnamese enterprises should link with each other to find a way forward and grow together.”

Of the major markets importing Vietnamese fruits and vegetables, China still tops the list, accounting for nearly 75% of Vietnam's total fruit and vegetable export revenue. Other key export markets are Japan, the US, the Republic of Korea, and the Netherlands.

In the first half of this year, Vietnamese farm produce exports to traditional markets enjoyed stable growth. At the present growth rate, Vietnam’s fruit and vegetable export value will exceed US$3 billion this year.

llegal Uber, Grab taxi operation rampant in Danang

Many cars have been found to provide Uber and Grab services in Danang City despite not being allowed by municipal authorities.

The Danang City Department of Transport on August 2 said that the department won’t give the go-ahead to the pilot operation of Uber and Grab until the Ministry of Transport reviews the two-year trial operation of ride-sharing companies such as Grab and Uber and then issues the legal framework to better manage such services.

However, according to deputy director of the municipal Department of Transport Bui Thanh Thuan, a range of cars blatantly run Uber and Grab services in the city at present.

“The department has requested Uber Vietnam Ltd. Co. to stop Uber service as well as advertisements about the service in the city. We will strictly fine violators,” Thuan added.

Earlier, in spite of efforts to deal Grab taxi service which has also not yet been licensed, more cars running as Grab taxi have appeared in Danang.

The city’s Department of Transport said it is not easy to detect Uber and Grab services which are private cars without badges. The department has fined dozens of cars which run Grab service.

Danang city’s authorities have informed the Ministry of Transport the Uber and Grab violations in the city.

British newspaper forecasts Vietnam GDP growth at just 6.3%

The Economic Intelligence Unit of the Economist has forecast the GDP economic growth of Vietnam to be far below expectations for the five-year period 2017-2021.

british newspaper forecasts vietnam gdp growth at just 6.3% hinh 0 The EIU projected just a 6.3% growth rate for Vietnam this year and 6.5% for next year far below the government targets and much lower than what is needed to move the country forward in meeting its desired long-term growth targets.

On the brighter side, the EIU said thanks to more foreign direct investment inflows and more streamlined governmental administrative procedures export growth will expand 9.1% this year.

Entrepreneurs are the pillar of the Vietnam economy

The domestic private sector in Vietnam is still relatively underdeveloped and faces major challenges, said speakers from the Ministry of Planning and Investment at a recent economic forum in Hanoi.

In a keynote address, Minister Bui Quang Vinh told the audience that since Doi Moi reforms began in the 1980s and governmental leaders opened the country to international trade and investment, the country has experienced marked economic growth.

But it has largely been the strong response from foreign multinationals that has transformed the economy into a dynamic market-oriented one without a corresponding answer from the domestic private sector.

Though this economic growth has contributed to lifting tens of millions out of poverty, this prosperity has not been broadly shared among the population and just as many citizens have received little to no benefit at all.

The country now finds itself at a crossroads, said Minister Vinh, with economic growth slowing down compared to that of the past decade to well below 7%—  and lower than what is needed to transition the country as a whole to middle income status.

Vietnam now must turn to entrepreneurship and the domestic private sector to shoulder more of the load to continue down the path to improved prosperity and a higher standard of living for all its citizens.

Simply stated, entrepreneurship is about innovation and managing a business venture in a competitive global marketplace that is constantly evolving with the overarching objective of benefiting the entire Vietnamese society.

Entrepreneurs are a special brand of people who buck tradition, innovate, invent and actively lead and build small companies and then turn them into larger ones and eventually into multinationals.

They are, said Mr Vinh, in essence the engine for the growth of the Vietnam economy of tomorrow.

To support entrepreneurship the government is rolling out new draft laws in support of small-and medium-sized businesses with the goal of promoting some one million start-ups.

The objective is to create a level playing field for state-owned and domestic private sector businesses giving the latter better access to debt and equity capital so they can retool and become more competitive with their foreign peers.

This should allow entrepreneurs to position themselves to take better advantage of opportunities presented by free trade agreements for expanded trade in overseas markets, which in turn will create higher paying jobs for Vietnamese workers.

The new laws will also speed up the resolution of bad debts in the banking segment, which in and of itself will provide more long-term capital for small businesses. In addition, it will help develop the bond, securities, pensions and insurance markets, which are additional sources of financing.

Vietnam has a bright future, said Mr Vinh, if it can find the financial resources and unleash its entrepreneurs and fully capitalize upon the innovativeness and creativity of the domestic private sector.

With entrepreneurs as the pillar, the economic success of the country will grow and tens of millions more Vietnamese citizens will have a better chance of finding good paying jobs and sharing in the country’s growing prosperity.

Tata Power and ACWA Power set on renewable energy projects in Vietnam

Along with licensed projects, foreign investors, especially Tata Power and ACWA Power, found new opportunities in the renewable energy sector in Vietnam.

On August 3, representatives of the two groups visited the central province of Binh Thuan to find investment opportunities in the renewable energy sector.

Notably, at the morning working session with provincial leaders, the representatives of FECON group and ACWA Power proposed to develop three renewable energy projects with the capacity of 50MW each.

On the same day, Tata Power from India expressed its desire to pour capital into a solar power project with the capacity of 100 MW. With its experience in the energy sector, Tata Power is confident on the feasibility of developing the project.

The provincial leaders pledged to provide favourable conditions for these firms during the studying as well as the construction process.

The above enterprises are familiar names in the Vietnamese energy sector.

Tata Power, an affiliate of Tata Group, is one of the leading power businesses in India. Earlier, the company was granted permission by the government to build Long Phu 2 thermal power plant, expected to cost US$2 billion, in Mekong Delta province of Soc Trang. With a capacity of 1,320MW, Long Phu 2 plant is expected to become operational in December 2020.

Regarding ACWA, in early July, a consortium including Saudi Arabian ACWA Power and the Republic of Korean Taekwang Power Holdings Co., Ltd. officially received the investment certificate for the US$2.3-billion Nam Dinh 1 thermal power project. It is the seventh foreign-invested power project licensed in Vietnam since the country opened its doors to foreign direct investment three decades ago.

The 1,200MW plant is an independent greenfield power project to be developed on a build-operate-transfer (BOT) basis. It is part of the 2,400MW Nam Dinh thermal power complex. The project is scheduled to commence construction in early 2018. The first unit will enter commercial operations within 51 months, while the power facility will take 57 months.

Binh Thuan is considered a great potential for solar power development. The province has approved investment studies in 30 other solar electricity projects, Eco Seido and Da Mi solar plants of which have a respective capacity of 40MW and 47MW and are getting approval from the Ministry of Industry and Trade.

Binh Thuan has 40 locations suitable for solar power projects, mainly in Bac Binh, Tuy Phong, and Ham Tan districts.

Stiff import competition – an opportunity for the fresh fruit segment

Fresh fruit imports into the major metropolitan areas of Vietnam have been growing rapidly since the beginning of the year, thanks in part to the country’s growing middle income population, experts have said.

This new-found class is spawning the emergence of a new generation of Vietnamese consumers willing to spend more on healthy food— and the trend has huge economic implications for fruit-exporting countries worldwide. 

The comments came after the Vietnam Fruit & Vegetables Association reported that foreign fresh fruit consignments into the Southeast Asian country surged more than 40% in the early months of 2017 and could likely hit US$1 billion by year’s end.

The Association report noted that a survey of supermarkets in the Ho Chi Minh City districts of Thu Duc and Hoc Mon reported that approximately one-fourth of their fresh fruit sales were imported.

This shows unequivocally, said the responding supermarkets, that the potential for the foreign fruit segment has yet to be fully realized, given the enormous potential nationwide demand.

The report noted that more than 50% of imported fruit is sourced from Thailand followed by China, Australia, the Republic of Korea, the US and Myanmar in descending order of magnitude.

Mangos and custard apples from Thailand along with oranges from China are the most popular imports. Other well-liked imports are apples, oranges, pears, kiwi, cherries and grapes from New Zealand and Australia.

What is happening is that the trends in Vietnam are moving toward health. And much of that is happening in the food segment, said Le Quoc Phuong, deputy director of the Ministry of Industry and Trade Information Centre.

Increasingly we see an uptake in more expensive imported products and produce due to the rise of incomes, e-commerce, and the fact that delivery is not a challenge for metropolitan areas of Vietnam anymore, Mr Phuong said.

He said he doesn’t have a problem with imports of fruit that farmers in the country can’t produce but wants protectionist barriers erected by the government to prevent imports that compete with local farmers.

However, he readily admits that the segment needs to invest more in high-tech agriculture to produce cleaner products and seize the initiative to prove to domestic consumers through better marketing that the country’s produce is high quality and safe to eat.

Nguyen Huu Dat, general secretary of Vietnam Fruit and Vegetables Association, has a different take on the situation.

Growers, traders and producers in the fruit segment must learn how to generate higher-quality goods and market those items to be competitive in the domestic as well as international markets, said Mr Dat.

Tougher import competition, he said, should lead farmers and others in the segment to make better decisions and upgrade the quality of their goods and improve their marketing skills.

Vietnam today finds itself moving into the middle-income class. As a rule, higher-per-capita-income countries produce and export first-class products and that is the challenge that the fruit segment faces.

Contrary to widespread belief in Vietnam, lower tariffs on exports for countries that produce low quality goods discourages quality upgrading. Quality upgrading of produce like any product only results from open markets and stiff competition.

Stiff import competition, said Mr Dat, should be viewed as an opportunity by the fresh fruit segment that could lead to better produce, higher domestic and export sales, improved earnings— and to a better quality of life.

Southern trade promotion pushes clean agriculture     

Trade promotion activities in the southern region this year have focused on monitoring start ups and promoting clean agricultural and industrial production, officials said at a conference on Thursday.

Training and enhancement of stakeholders’ managerial skills was another focus area, said Do Thi Minh Tram, deputy head of the Agency for Regional Industry Development (ARID).

The eighth annual conference on trade promotion in southern cities and provinces was organised by the Ministry of Industry and Trade (MoIT), ARID and HCM City’s Department of Industry and Trade (DoIT).

It took note of numerous successes and discussed solutions to remaining problems.

The conference noted that a training workshop held recently had more than 730 participants gain insights into business management, quality control, accessing distribution networks, eCommerce and the use of technology in trade promotion.

The HCM City DoIT also reported a number of support activities for technology transfer, with 48 rural areas receiving modern machinery worth VND6.7 billion ($298,653) for use in agricultural production.

Several deficiencies were also highlighted at the meeting, including the low rate of disbursement of State capital at just 18.8 per cent of the annual target.

The provinces of Ba Ria – Vung Tau and Soc Trang have yet to begin the disbursement process, while others like Tay Ninh, Tien Giang and Hau Giang have only achieved one to six per cent of the yearly goal, the meeting heard.

Tram said trade promotion and industrial support for businesses in the region had seen certain setbacks with many officials not performing at maximum efficiency.

Tran Quoc Tuan, Director of the Tra Vinh Department of Industry and Trade, said trade promotion activities should focus more on supporting regional imperatives like facilitating agricultural production and distribution in the Mekong Delta.

Tuan said this can be done by changing several administrative procedures, improving cold storage equipment, water supply, input supply and upgrading production chains.

The need to use regional strengths in order to create a value chain between provinces and cities was emphasised at the conference. 

Innovation programme kicks off     

The National Agency for Technology Entrepreneurship and Commercialisation Development announced the fourth Leaders in Innovation Fellowships programme on Friday.

The programme is co-operation between the agency, under Vietnamese Ministry of Science and Technology, and the UK’s Royal Academy of Engineering. These grants are provided by the Newton Fund, a UK Government initiative.

The programme aims to enhance capacity for scientists, inventors and start-ups in commercialising research results, especially creative and practical solutions which contribute to socio-economic development.

It also aims to build an international network among inventors, scientists and businessmen in the field of technology.

Fourteen learners will be selected to take part in the two-week programme, which is set to take place in the UK this December.

Participants will receive airplane tickets and costs of accommodation and meals.

Entrants should submit ideas for their products, inventions or solutions in health and life sciences, agriculture, environmental resilience and energy security, future cities or digital innovation and creativity.

Applications must submitted to email address lif.natec@gmail.com before September 14.

A workshop to consult and instruct candidates to fulfill application will open in HCM City on August 17 and Ha Noi on August 22.

Detailed information will be updated on website www.tsc.gov.vn. 

Fees to make up more bank revenue     

The income from service fees will contribute roughly 20 per cent to the total revenue of the entire banking system by 2020, doubling the current rate.

This was stated in the project on restructuring credit institutions in the period between 2016 and 2020, released by the State Bank of Viet Nam (SBV) recently.

Compared with the rates in other regional countries, Viet Nam’s proportion is currently equal to Indonesia’s but is much lower than Malaysia’s (20 per cent) and Thailand’s (30 per cent).

According to experts, the target is challenging because it requires banks to prioritise resources in product development, which can help firms get funding but not through bank loans as currently. The products are derivatives, which are the combination of the stock market and the monetary market. At that time, banks will only play the role of intermediary to bring the capital of people directly to the firms.

However, it is a must as it will help banks avoid risks from too much lending. The country experienced the negative consequence in the period between 2006 and 2011, when credit growth was at 30 per cent, causing banks to suffer a large amount of bad debts that have yet to be settled.

To meet the target, the SBV states in the project that it will take measures to force banks to meet the credit growth quota assigned by the SBV. The SBV has allocated credit growth limit for credit institutions based on their health and performance in the previous years since 2012 to control the lending. The institutions will be classified into four groups, with well-performing lenders clubbed in the A group and weaker lenders in the D group.

Under the new project, governance to manage risks is also detailed with all credit institutions having to build the risky governance system.

Commercial banks have performed well in the first half of this year, and business results show that many have already met more than half their annual profit targets. However, most of their profits come from lending. According to statistics from the SBV, credit growth in the first half of this year was 9.06 per cent, the highest level compared with the same period in the last five years.

Experts are concerned that the high credit growth can cause potential risks for banks in the next two or three years like in the period between 2006 and 2011. 

Social housing must look nice: construction official     

HCM City should build social housing priced at up to VND1 billion (US$44,000) rather than VND200-300 million to ensure a reasonable quality of life for their occupants, the city’s top construction official has said.

Tran Trong Tuan, director of the Department of Construction, told a conference on Friday that building affordable apartments has been part of the city’s agenda for decades.

It has built tens of thousands of apartments for poor people and workers and plans to build 20,000 more from now through 2020, he said.

But he was not keen on super-cheap apartments, saying the quality of life of their occupants should be a priority.

Earlier he had talked to the media about three requirements for a cheap social housing project: land given for free to developers, infrastructure and a minimum size of each unit of at least 25sq.m.

Nguyen Van Duc, deputy director of property developer Dat Lanh, who had designed cheap housing in the city many years ago, told the conference it is feasible to build apartments priced at VND200-300 million in outlying districts like 12, Hoc Mon, Cu Chi, Binh Chanh, and Nha Be.

He said the department should encourage and guide property developers in building such apartments so that poor people could afford to buy them.

But Tuan rejected the idea of VND200-300 million units saying though it was feasible “an apartment is not just a place to live but reflects the quality of its occupants’ life and needs infrastructure.”

A better solution is to build apartments priced at VND350 million-1 billion, he said.

But VND100 million apartments could be built in industrial parks for workers, he said.

In February the department had urged companies based in Hiep Phuoc and Linh Trung industrial parks in Nha Be and Thu Duc districts to build residential clusters with 25sq.m apartments priced at VND100 million for their workers.

The city administration recently instructed the construction apartment and architecture association to organise a social housing design contest.

Tuan said the aim of the competition is to come up with social housing models which are not only affordable and have decent infrastructure but also look “nice” to buyers and put paid to the negative perception of workers’ apartments.

Asked about concerns that the contest could end up as a waste of time and money if the winning designs are not used to build social housing, Tuan said he would apply the lessons from past contests to ensure the designs entered are practicable.

Le Huu Nghia, director of real estate firm Le Thanh Co Ltd, said his was one of the first companies to apply for a construction permit online – under a programme that is being piloted now – and expects to get it from the construction department by August 8.

“I find that the service is very helpful and the department should soon launch it officially. Before this, property companies had to go to various agencies and sometimes wait for half a year to get a construction licence. Now it is only 12 days.”

The electronic service, whose trial began last month, is expected to reduce the time taken for approval from the current 133 days to 42.

Applicants do not have to go to government offices and can apply by submitting documents online.

Incomplete or ineligible applications will be returned for changes. Information can be sent via text message or email. Individuals and companies have to visit the construction department only once to pay the fee and get the permit.

Duc said that besides this the department should also allow developers to start building the foundation as soon as their 1:500-scale construction plan is approved.

Tuan replied that he had considered this but some concerns remain in terms of legislation that cannot be resolved yet.

Besides, one of the main objectives of administrative reforms this year is to reduce the time taken to issue permits and licences, and so the focus now is on the online service first.

“By the end of this year the department will review the electronic service and improve it.”

Digiworld, B2X form new joint venture     

 Digiworld Corporation and B2X, a global provider of customer care services for smart mobile and IoT (internet of things) devices, have formed a joint venture called B2X Care Solutions Viet Nam.

The new joint venture, officially formed on Friday, will offer care services to Samsung Electronics Vietnam and specialise in after-services.

It will also expand B2X’s operations in Viet Nam and improve Digiworld’s service in the country. The services will be run based on B2X’s smartbar solution which is used in many markets around the world.

Đoàn Hồng Việt, Digiworld’s CEO and chairman, said: “We’ve found a strategic partner to help us and our customers provide a complete go-to-market solution for international brands entering Viet Nam.”

B2X Care Solutions Viet Nam plans to operate eight walk-in service centres in HCM City, Mekong Delta and in southern region and employ around 150 service experts, providing users of mobile and electronic devices with troubleshooting support and device repair services for in-warranty and out-of-warranty failures.

Digiworld is one of the largest wholesalers of consumer electronics and smart mobile devices in the Vietnamese market. With 6,000 points of sales and an average annual growth rate of 33.7 per cent, the company ranks among the top three information and communication technology industry players.

B2X, a Munich-based company with a global operation, is a business process outsourcing provider. It offers end-to-end customer care solutions for mobile and information technology devices. The company recently acquired two leading local repair-service and customer-support providers. 

GM Vietnam introduces new SUV Chevrolet Trailblazer     

GM Vietnam introduced its all-new seven-seater premium SUV, the Chevrolet Trailblazer, at the Vietnam Motor Show 2017 in HCM City on Thursday.

The Trailblazer is equipped with a 2.8L Duramax four-cylinder turbo-diesel engine, fuel economy and emissions. It also features Electric Power Steering (EPS), which makes steering easier in the city.

The new vehicle comes with a host of active and passive safety features that include the traction control system, anti-lock braking system, electronic brake force distribution and electronic stability control, as well as hill descent control, hill start assist and trailer sway control.

Along with the Trailblazer, in the Chevrolet Pavilion is the Chevrolet Colorado, which is equipped with the Genuine Accessories package, the 2017 Corvette Grand Sport and the Bolt EV, Chevrolet’s flagship electric vehicle.

The show, being held at the Sai Gon Exhibition and Convention Centre in District 7, is on until August 5.