Vietnam’s Q1 farming output grows at fastest rate in 13 years

Output of the agro-forestry and fishery sector in the first three months of 2018 grew by 4.05%, the fastest pace of the last 13 years, the Ministry of Agriculture and Rural Development (MARD) has announced.

Official data showed that Vietnam’s agricultural exports for the January-March period hit US$8.7 billion, up 9.6% from the same quarter of 2017.

MARD Minister Nguyen Xuan Cuong said that the agricultural picture in the first three months of the year was very positive, laying the foundation for continued growth in the coming quarters.

The ministry aims to reach a full-year growth rate of at least 3% for the sector, with export revenues targeted at US$40-40.5 billion.

According to the MARD, Vietnam produced an estimated 11.18 million tonnes of rice in the first quarter of 2018, up 5.4% from the same period of 2017.

At the same time, Vietnam’s rice export prices increased as a result of their improving quality and it is projected that the country could ship 6.5 million tonnes of the grain this year, the MARD said, noting that 81% of Vietnam’s rice exports were high quality grains.

Vietnam also aims to export US$10 billion worth of seafood this year.

Currently the MARD is working closely with local authorities to instruct fishermen in strictly complying with fishing rules and regulations so as to remove the yellow card issued by the EU last year as a warning over illegal fishing.

Farmers dry unhusked rice in Hong Dan district, the Mekong Delta province of Bac Lieu 

High rice import demand from Vietnam’s major markets in the second quarter is expected to help exporters continue good overseas shipments in the first three months of this year.

Some foreign news sources reported that in late March, the State Logistics Agency of Indonesia (Bulog) signed contracts to purchase 300,000 tonnes of rice from Vietnam and 200,000 tonnes from Thailand. This is the third time Indonesia has imported rice since the beginning of 2018.

Chairman of the Vietnam Food Association (VFA) Nguyen Ngoc Nam confirmed the report, saying that Bulog invited the Vietnam Northern Food Corporation and the Vietnam Southern Food Corporation to supply the rice. This contract will be carried out from April to July this year.

The Philippines, another major market, is also planning to import rice in large amounts in the second quarter, the VFA said, adding that the country will import 250,000 tonnes of rice to augment its rice reserves. The auction will open in May.

Meanwhile, rice import demand from China, Malaysia and Japan has also helped warm up the Asian rice market, promising good prospects for Vietnam’s rice shipment in the second quarter.

According to the agriculture ministry’s Department of Crop Production, about 980,000 hectares of winter-spring rice in the Mekong Delta, the biggest rice hub in Vietnam, had been harvested as of March 29 with average productivity of 6.5 – 6.6 tonnes of unhusked rice per hectare.

Some rice exporters said the market in the Mekong Delta has become vibrant since mid-March due to abundant rice supply, supporting their export activities.

The US Department of Agriculture predicted Vietnam could export 6.7 million tonnes of rice this year thanks to shipments to China and expansion in other markets.

The Ministry of Agriculture and Rural Development reported that rice exports in January – March totalled 1.36 million tonnes worth 669 million USD, representing year-on-year rises of 9.4 percent in volume and 24 percent in value. China remained the top importer of Vietnamese rice, accounting for 24.4 percent of total exports.

Van Don asks for suspension of projects pending special master plan

The Van Don Economic Zone Authority has asked the People’s Committee of Van Don district and investors to stop establishing new projects, adjusting project plans and applying for investment pending the approval of master plans for the future special administrative-economic zone.

Projects subject to the proposed suspension exclude new projects relating to social security of Van Don district along with  “Con duong di san” (Heritage Road) project,  Sonasea Dragon Bay rerort complex, Ngoc Vung Island project and Sun Group project, which are major investments.

The Van Don Economic Zone Authority proposed that other projects only be permitted to continue by the People’s Committee of Quang Ninh province after a master socio-economic plan and general construction plan of the Van Don special administrative-economic zone are approved.

For the projects that have received investment approval or investment registration certificates, the authority will ask the provincial administration to allow them to reschedule their progress if necessary, so their implementation can continue after the master plans are adopted.

The north-eastern border province of Quang Ninh is working to build Van Don into a special administrative-economic zone to meet new development requirements. Van Don is also expected to become a green coastal city and an example of climate change response in the region.

Quang Ninh has employed Arcadis & Callison RTKL company, which has branches in the US, the Netherlands and some other countries, to make the plans.

Van Don will be one of the first three special administrative-economic zones in Vietnam. The others are Bac Van Phong in central Khanh Hoa province and Phu Quoc in southern Kien Giang province.

Quang Nam attracts 153 FDI projects

The central province of Quang Nam is home to nearly 6,000 businesses, including 153 foreign direct investment (FDI) projects with total registered capital of 5.58 billion USD. 

In the first quarter of 2018, the locality licensed five FDI projects worth nearly 12.4 million USD. 

Among more than 20 countries and territories investing in Quang Nam, the Republic of Korea (RoK) takes the lead with 31 projects valued at more than 250 million USD. Of which, 20 projects are operational while the rest are under construction. 

During January-March, the province also granted licences to 12 domestic projects with accumulated capital of over 954 billion VND (41.9 million USD). At the same time, there were 278 newly-established firms worth 1.4 trillion VND (61.6 million USD). 

Nguyen Hong Quang, Chief of the Office of the provincial People’s Committee, said the foreign-invested enterprises have generated jobs for tens of thousands of labourers. 

He also highlighted Quang Nam’s potential and advantages for industry-based economic development such airport and seaport infrastructure, favourable transport and high-quality human resources. 

The locality is calling for investment in a range of areas such as infrastructure in industrial zones and clusters, manufacturing mechanics, industries in support of auto manufacturing and assembling, garment-textile, leather and footwear, electronics, and agro-forestry-seafood product processing, among others, he said.

Tra Vinh draws 26 investment projects in Q1

The Mekong Delta province of Tra Vinh attracted 26 investment projects worth over 407 billion VND in the first three months of 2018, up 18 projects against the same period last year. 

According to the provincial Department of Planning and Investment, five out of the newly-invested projects have become operational. Most of the projects operate in agricultural production, aquaculture, tourism, and textiles, which are among the locality’s investment incentives. 

Vice Director of the department Vuong Hai Khoa said to create breakthroughs in economic development, the locality has paid special attention to promoting industrial development and investment attraction. 

It has also focused on simplifying administrative procedures and implementing many preferential policies on land, technical infrastructure and human resources training, and trade promotion. 

The 2017 Provincial Competitiveness Index of Tra Vinh was up five levels compared to 2016, ranking 37th among 63 provinces and cities nationwide. 

Statistics show that Tra Vinh is home to 38 foreign-invested projects worth 3.1 billion USD, and 204 domestic ones with total investment of nearly 101 trillion VND (4.43 billion USD). 

The investment projects have helped generate jobs for a large number of rural labourers, and consume agro-aquaculture products of the locality. 

Hai Phong lures 916 million USD in FDI in Q1

The northern city of Hai Phong attracted 916 million USD in ​foreign ​direct investment (FDI) in the first quarter of this year, surging by 332.34 percent from the same period in 2017.

The sum came from 15 newly-licensed projects and additional capital of 12 other existing ones. Up to 532 FDI projects worth 15.44 billion USD are operating in the city.

The remarkable outcomes were attributed to the city’s efforts to streamline administrative procedures, improve the investment environment, tackle difficulties for businesses, promote trade, and reel in investment, according to Chairman of the municipal People’s Committee Nguyen Van Tung.

The city successfully organized a Japanese investment and tourism promotion talk, a meeting with 400 local and foreign businesses operating in the city early this year, and two dialogue conferences with businesses.

Up to 67.89 percent of businesses in the locality have undertaken online procedures for their establishment registration.  

The city has also launched a programme to “enhance the capacity of the support industry” with the support of senior volunteers from the Japan International Cooperation Agency (JICA).

Tung said the city will continue instructing units and localities to screen projects calling for investment while regularly providing accurate and full information about land lease and workshop rent at industrial clusters. It will issue a legal support plan for businesses in 2018.

The city will focus on speeding up key projects, like the Hai Phong international port in Lach Huyen, whose first two wharves expected to be inaugurated in mid-2018 and a coastal road linking Quang Ninh with Hai Phong, Thai Binh, Nam Dinh, Ninh Binh and Thanh Hoa.

Hai Phong is working closely with neighbouring Quang Ninh province in the construction of the Bach Dang Bridge which connects the two localities when it is completed in the second quarter of this year.

It plans to continue deploying the construction of terminal 2 in Cat Bi international airport, Tan Vu-Lach Huyen bridge No 2, and other wharves of Hai Phong international port.

Binh Duong records trade surplus of over 1.5 bln USD in Q1

The southern province of Binh Duong recorded a trade surplus of more than 1.5 billion USD in the first quarter of 2018, according to the provincial Department of Trade and Industry.

In the reviewed period, export turnover of the province reached more than 5.57 billion USD, a rise of 15.3 percent year-on-year, while imports were valued at over four billion USD, up 16.8 percent.

The high export turnover was attributable to the 10-15 percent growth of key items including wooden products, which were valued at 644 million USD, up 13.5 percent; garment-textiles products at 627 million USD, up 18 percent; and footwear at 630 million USD, up 15.1 percent.

Meanwhile, the province imported chemicals worth 202 million USD, timber and wooden products (261 million USD), fabrics (231 million USD) and garment-textile materials (345 million USD).

The freshly-signed Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to foster exports of Binh Duong province in the coming time. 

Local businesses are advised to fulfil the requirements on product origin and devise appropriate business plans to enjoy the preferential tariffs.

100MW wind-solar power project underway in Binh Dinh

Construction of a Japanese-funded wind and solar power project began in Quy Nhon city, the central province of Binh Dinh on April 3.

The 100MW project is invested by the Fujiwara Binh Dinh Co. Ltd., which said it is committed to being on schedule and making contributions to the local economy. 

With total investment of 63.69 million USD, its construction is set to have two phases. In the first phase, a 50MW solar plant will be built on over 60 hectares of land on the southern side of Phuong Mai mountain in the Nhon Hoi economic zone. It is expected to be operational in February 2019.

The second phase will see a 50MW wind-power plant constructed on the Nui Ba mountain’s side in Phu Cat district. Spanning 200 – 250 hectares, the facility is expected to operate in 2020.

Deputy Chairman of the provincial People’s Committee Phan Cao Thang said the project will contribute to promoting the national programme on clean energy development, enhance the image of the Nhon Hoi economic zone and Binh Dinh province, and create more jobs.

Binh Dinh is boosting investment attraction in clean and renewable energy, with the project being the third in renewable energy and the first in solar power in the locality.

HCM City: Trade fair promotes high-quality Vietnamese goods

Some 300 businesses are marketing their high-quality signature products and foods in a trade fair that began in Ho Chi Minh City on April 3.

The fair houses a “green market day” section that brings farms, cooperatives and young people-led startups to showcase organic products. 

The section also houses stalls owned by farmers who are pursuing clean production procedures and outstanding start-ups projects from Ho Chi Minh City, Dong Thap, Ben Tre, Can Tho, Ca Mau, Quang Ngai, and more.

Vu Kim Hanh, Chairwoman of the High-Quality Vietnamese Producers, said the fair looks to seek ways for the entry of qualified and quality locally-made commodities into more markets in the world.

Visitors to the fair can take part in consumer-orientated activities like a trading hour for one-price products, game shows, and food contests, and buy thousands of products with big discounts.

The fair is one of practical activities to respond to the campaign “Vietnamese prioritizes using Vietnamese products” launched by the Vietnam Fatherland Front.    

Pham Dai Duong, Deputy Minister of Science and Technology, hailed the fair organizing board for their efforts to unceasingly improve the ways to connect local producers and consumers.

The fair will last till April 8.

Dong Nai’s export revenue reaches 4.3 billion USD in Q1

The southern province of Dong Nai earned 4.3 billion USD from export in the first quarter of 2018, up 12.3 percent over the same period last year, according to the provincial Department of Planning and Investment.

Cao Tien Dung, head of the department, attributed the province’s high export revenue in the first quarter to long-term orders that local firms won earlier, as well as the recovering domestic and global economy and expanded export markets.

A surge was seen in major products of the province, including footwear, garment and textile, computers, electronic spare part, machines, cashew nuts, and wooden products.

Major markets of Dong Nai in the first quarter included the US, China, the Republic of Korea, Taiwan (China), the EU and Russia.

Dung said that in order to maintain the high growth, and complete its target of 11 percent in exports growth to reach 18.5 billion USD, the province will continue accompanying businesses, while supporting them in promoting trade promotion and seeking markets.

At the same time, the province will enhance connection between local products and firms to foreign-direct invested companies in the locality to minimise imports and improve competitiveness of domestic businesses.

Dong Nai is now home to 35 industrial zones with more than 700,000 workers. The locality achieved a record trade surplus of 2 billion USD in 2017.

PetroVietnam’s Q1 budget contribution exceeds target

The Vietnam National Oil and Gas Group (PetroVietnam) contributed 23.8 trillion VND (1.04 billion USD) to the State budget in the first quarter of this year, representing a year on year rise of 12 percent and exceeding the quarterly plan by 30 percent.

Total oil production of the firm in the period was 6.34 million tonnes, exceeding the plan by 4.5 percent. 

The group also generated 5.72 billion kWh of power, 431,200 tonnes of nitrogen, and 1.69 million of petrol.

At the same time, its financial targets were completed, with total revenue of 136.3 trillion VND (5.99 billion USD), surpassing its plan by 12 percent and posting a rise of 15 percent year on year.

However, the firm is likely to face many difficulties in fulfilling the goals set for 2018 as the crude oil price in the world has fluctuated unexpectedly, affecting its business.

Meanwhile, PetroVietnam’s major products are coping with fierce competition from imported ones, while obstacles in related policies and mechanisms have yet to be removed.

The reduction in exploitation in major wells in 2018 is also forecast, while geological risks are rising, negatively impacting oil production of the whole country, including the PetroVietnam.

PetroVietnam produced 15.52 million tonnes of oil in 2017, surpassing its set target by 1.3 million tonnes.

Mekong Delta to boost tra fish quality

The Ministry of Agriculture and Rural Development has approved a three-tier co-operation plan for production of high-quality tra fish breeds in the Cửu Long (Mekong) Delta from now to 2025.

The VNĐ597 billion (US$26.2 million) plan calls for tra fish breeding chains to produce about 50 per cent of the Delta’s demand of 2.2–2.5 billion high-quality fries a year by 2020.       

By 2050, the production chains would supply 100 per cent of the Delta’s demand of 2.5–3 billion high-quality fries a year.

The first of the three tiers includes research institutes and universities that use advanced techniques in selecting tra fish breeders, using tra fish breeding production techniques and transferring the techniques to the second tier.

The second tier includes provincial tra fish breed producing centres, companies’ tra fish breed nurseries, while the third-tier includes establishments that nurse tra fish from the newborn to fingerling stages.

The plan will upgrade the An Giang high-quality tra fish breed centre and establish three concentrated tra fish breed production areas in An Giang Province.

Four concentrated tra fish breed production areas in Đồng Tháp Province will also be set up.

In the Delta, there are 108 tra fish artificial reproduction establishments and 1,900 households that nurse newborn tra fish to the fingerling stage, mostly located in An Giang and Đồng Tháp provinces, and Cần Thơ City.

There are about 101,000 tra fish breeders (mature female/male) aged 6-7 years that produce fish fries in tra fish artificial reproduction establishments in the Delta, according to the Research Institute for Aquaculture No. 2.

The delta is now facing a shortage of tra fish fries because of unfavourable weather conditions and small-scale production.

The price of tra fish fries is at VNĐ45,000–50,000 a kilo for the kind of fish that produces about 30 fries a kilo, according to the Việt Nam Pangasius Association.

Early last year, the price for this type was VNĐ27,000–39,000 a kilo.

Vinh Phuc seeks funds for support industry     

The northern Vinh Phuc Province has called for investments in the automobile, motorbike and electronic production support industries, said Nguyen Van Tri, chairman of the provincial People’s Committee.

Statistics from the management board of the province’s industrial zone (IZ) in the first quarter of the year show that licences were granted to nine new foreign direct investment (FDI) projects with total registered capital of US$45.11 million, meeting 17 per cent of the whole year’s target. It also granted licences to two domestic direct investment (DDI) projects with total registered capital of VND85.9 billion, increasing by 4.3 times from the same period last year.

Some 10 out of the 11 new projects were for electronic spare parts production and the remaining was for mechanic manufacturing.

So far, the province has 246 projects in its industrial zones, including 46 DDI and 200 FDI projects.

Tri said the province had always attached importance to providing benefits to investors. They had facilitated businesses in their operation and investment in the locality.

He added that the number of investment projects in the support industry for mechanic, manufacturing and electronic production in the province was limited, which could not meet with the market development.

Figures from the management board of the province’s industrial zone revealed that by the end of the first quarter of 2018, the three sectors of automobile, motorbike and electronics saw higher growth than the corresponding period last year, contributing more than VND430 billion to the State budget.

The automobile and motorbike assembly sectors posted a revenue of $68.5 million, representing a 11 per cent year-on-year increase and an export value of $34.3 million.

The electronic sector was estimated to have a revenue of $595.1 million, increasing 57 per cent from last year with an export revenue of $558.4 million.

The chairman said attracting investments in the support industry and spare parts would not only benefit the State budget but also create jobs for the local people. The sectors provided jobs to 48,790 labourers, accounting for 63 per cent of the total labourers working in FDI firms in the province.

He believed that businesses from Japan and South Korea would pay attention to the province in the future.

The province will continue with its IZs and industrial clusters to welcome both local and foreign investments.

Viet Nam targets $40b farm exports     

Viet Nam will focus on expanding the export market for agricultural products in the second quarter of this year, said Deputy Minister of Agriculture and Rural Development Ha Cong Tuan.

Making a speech at the press conference in Ha Noi on Tuesday, Tuan said agricultural products were among the seven solution packages conducted by the ministry to maintain growth since early this year, aiming to reach US$40-40.5 billion this year.

In the first quarter of this year, the country reached an estimated export turnover of $8.7 billion from agriculture, forestry and fisheries, marking a growth rate of 4.05 per cent.

“This is the highest growth rate in the past 15 years. It’s an effort of the whole sector in directing production and an initial effect of restructuring agriculture, which links production with the trends of the market,” said Tuan.

At the conference, local media also mentioned the US anti-dumping tax imposed on tra fish imported from Viet Nam and the possibility of the European Commission withdrawing the yellow card against off-shore seafood products of Viet Nam. The warning of the yellow card is part of the EC’s fight against illegal, unreported and unregulated (IUU) fishing worldwide.

Regarding the imposition of anti-dumping duties on tra fish, Deputy Director of Directorate of Fisheries Nguyen Quang Hung said this was an unreasonable action.

“My directorate in collaboration with the Vietnam Association of Seafood Exporters and Producers (VASEP) are co-operating with businesses and other relevant sectors to appeal against this judgment,” said Hung.

In the 13th administrative review (POR13), the US imposed an anti-dumping tax on Vietnamese tra fish five to six times higher than the previous tax, which was $0.69 per kilo.

According to VASEP, Vietnamese businesses are not dumping. The selling price of Vietnamese tra fish is cheaper than that of American fish because inputs such as labour and production conditions are cheaper than the US side.

“The US’s decision is unilateral and unfair, not matching the rules of the World Trade Organisation. We do not exclude the possibility that we will seriously consider bringing this case to international arbitration," said Tuan.

In regard to the EC’s yellow card for the Vietnamese off-shore seafood, Tuan said the ministry in co-ordination with relevant sectors would further improve legal framework, including the Fisheries Law which was passed by the National Assembly in 2017.

“We have organised many missions to dialogue with other countries as well as strengthening patrol and surveillance of fishing vessels to prevent fishermen from fishing illegally in foreign waters,” said Tuan.

Tuan said the sector had also co-operated with local authorities to instruct fishermen to strictly implement regulations on catching and traceability of seafood resources.

"Not only that, we are directing with other items such as timber and forest products to ensure the traceability according to law,” added Tuan.

Oakwood to launch 2nd serviced apartment in HCM City     

Oakwood Worldwide, wholly owned by Mapletree Investments, has announced the opening of its second property in HCM City and the first Oakwood serviced apartment developed by Mapletree in the country.

Oakwood Residence Saigon, which will become operational this month, is part of Saigon South Place in HCM City’s District 7, a 4.4-hectare integrated mixed-use project developed by Mapletree.

Chua Tiow Chye, deputy group chief executive officer of Mapletree Investments, said: “Mapletree is proud to launch our first Oakwood-branded property in Viet Nam, and the second in the Asia Pacific. This move is part of our wider business strategy to bring the … brand to global markets.”

Saigon South Place comprises SC VivoCity, a 64,250sq.m shopping mall, Mapletree Business Centre, a 17-storey grade A office tower, Oakwood Residence Saigon and high-rise residential tower RichLane Residences. There are plans for two more commercial towers there.

“Viet Nam has been experiencing robust economic growth and with international arrivals and domestic travel expected to continue on a growth trajectory, it is an opportune time for us to grow our presence in the country” Dean Schreiber, Asia Pacific managing director for Oakwood, said.

The company had built Oakwood Apartments in the city’s District 3 in 2016. 

Nawaplastic to boost holdings in Bình Minh Plastic to more than 50%     

Nawaplastic Industries Co Ltd, a subsidiary of Thailand’s SCG, has registered to buy an additional 818,609 shares of Binh Minh Plastics Joint Stock Company (BMP).

The trades are expected to be executed by agreement and order matching from April 4 to May 3, 2018.

Currently, Nawaplastic owns more than 40.84 million BMP shares, equivalent to 49.89 per cent of the company’s stake.

If the transaction succeeds, Nawaplastic will raise the ownership of BMP shares to more than 41.66 million shares, equivalent to 50.89 per cent, and dominate Binh Minh Plastics.

Prior to that, The Nawaplastic had won the bid to buy a total of 24.13 million BMP shares owned by the State Capital Investment Corporation (SCIC). The Viet Nam Securities Depository has also completed procedures to transfer the ownership of these shares.

Prior to this, Nawaplastic Industries was BMP’s major shareholder holding more than 16.7 million shares, equivalent to 20.4 per cent of total shares of Binh Minh Plastics.

On the market, BMP shares have fallen quite sharply and are trading around VND71,000 (US$3.11) per share.

Saigon Reai Estate to lift charter capital     

Saigon Real Estate Joint Stock Company (HOSE: SGR) has asked its shareholders to approve plans to increase charter capital from VND396 billion to VND555.4 billion (US$17.4 million-24.4 million) in 2018.

SGR’s plan for raising charter capital includes the issuance of shares to make 2017 dividend payments, with payout ratio of 15 per cent, instead of cash.

The company will also make public offering or private placement, with the offered shares amount equivalent to 25 per cent of the company’s charter capital. In 2018, SGR plans to earn VND270 billion in pre-tax profits and pay dividend at a payout ratio of 25 per cent.

SGR’s An Phu Dong apartment project in HCM City’s District 2, started in the second quarter of 2017 with 308 apartments and is expected to be finished in the fourth quarter of 2018, 90 days earlier than predicted.

Phase one apartments went up for sale at the end of 2017 and SGR will strive to sell 90 per cent of the apartments by Q2 of 2018.

In Q3 of 2018, SGR plans to start construction of An Phu River View project in HCM City’s Thu Duc District with 306 apartments.

The company is also waiting for the city authority’s construction permits to build 330 apartments at the An Phu Residence project next to the An Phu River View project.

According to SGR, these two projects will generate significant revenue and profit for the company in 2018.

In addition, SGR has completed legal procedures for its Saigonres Condotel project in Vung Tau City, which is expected to start construction in Q4 of 2018.

Saigonres Condotel is a 36-storey hotel including two basements with total investment of VND1.4 trillion.

Besides, Gem Riverside Project in HCM City’s Thu Duc District, jointly invested by SGR with Dat Xanh Real Estate Service & Construction Corporation (DXG) with total investment capital of VND5 trillion, is currently waiting for investment licence.

SSI Asset Management Company wins Asian Investor magazine award     

SSI Asset Management Company has won the Asian Investor magazine’s Asset Management Award for “Vietnam Onshore Fund House of the Year” title.

The annual awards honour outstanding asset managers and asset service providers across the region.

This is the fifth time SSIAM has won the award and for the four consecutive year.

In its more than a decade of operation, SSIAM has won several prestigious local and foreign awards.

SSI Sustainable Competitive Advantage Fund (SSI-SCA) has achieved strong growth, with its value surging from VND118 billion (US$5.16 milion) at the end of 2016 to VNĐ395 billion at the end of last year and VNĐ606 billion now.

In overseas markets, SSIAM continues to raise subscription to two investment funds, Andbanc Investments SIF and SSIAM UCITS. They are registered in Luxembourg and mobilise capital from European institutional investors and individuals to invest in the Việt Nam stock market.

In 2017 Andbanc Investments SIF funds grew by 44 per cent to $75.3 million, while SSIAM UCITS fund increased by nearly 60 per cent to $24.1 million.

In 2017 the total assets managed for external customers amounted to VND6.112 trillion, an increase of 60.3 per cent from 2016. 

Chu Lai Soda causes grief even after suspension

One year after Chu Lai Soda Processing JSC (Chu Lai Soda) suspended its operations, former employees are still looking for work and banks are still out to collect debts worth VND2 trillion ($88.1 million).

At the first-quarter press conference organised by the Quang Nam People’s Committee on March 29, Pham An, deputy head of the Chu Lai Open Economic Zone Management Board, stated that nearly 400 workers of Chu Lai Soda have yet to find new jobs and the firm still owes an average of one or two months of salary to each worker.

Besides, banks, including state-owned Bank for Agriculture and Rural Development (Agribank), are worried that the firm’s VND2 trillion ($88.1 million) debt that it took up to develop the factory will not be repaid.

In 2010, Chu Lai Soda’s 200-tonne soda processing factory was welcomed as the country was importing millions of tonnes of soda every year.

The central province of Quang Nam, where Chu Lai Soda intended to develop the factory, was lured in by the company’s promise to generate jobs for 400 local workers and pay VND60 billion a year to the provincial budget once the factory comes into operation.

In addition, banks located in the province, including Agribank, which decided to provide a loan of VND1.6 trillion ($70.48 million), and another bank, which gave VND400 billion ($17.6 million), to Chu Lai Soda.

As a result, in April 2010, the construction of the Chu Lai Soda processing factory was kicked off on an area of 60 hectares at Chu Lai Open Economic Zone with the investment capital of VND2.3 trillion ($101.3 million), VND2 trillion ($88.1 million) of which came from loans. The factory was expected to start operations after two years of construction.

In June 2015, after five years of delay in construction, the factory came into pilot operation. However, after a short time, hundreds of nearby households complained that their daily lives were affected by environmental pollution caused by the factory.

After clarifying the firm’s violations in discharging untreated wastewater, the local authorities issued a fine of VND730 million ($32.2 million) to the factory. Simultaneously, the company had to suspend its operations until it installed wastewater and solid waste treatment facilities.

However, in June 2016, local residents protested Chu Lai Soda’s relapse into discharging untreated wastewater into the local river. Tempers ran so high that residents threatened to take matters into their hands and block the company’s wastewater pipes.

Due to its relapse and delays in paying the fine, the authorities asked the factory to suspend its operations from August 2016.

PSTC and Gelex to kick off $54-million solar farm this month

Power Solution Technologies Public Company Limited (PSTC) from Thailand and Vietnam Electrical Equipment JSC (Gelex) have accelerated procedures to kick off the construction of Gelex solar farm located in the central province of Ninh Thuan this month.

According to information published on Gelex’s website, on March 30, the two parties signed a co-operation agreement to develop the project. Accordingly, PSTC will contribute a part of the project capital and will be in charge of the technical side of the project.

Gelex has been working with relevant parties and the contractor to complete procedures to organise the groundbreaking ceremony on schedule.

According to the plan, Gelex’s solar plant will have a total investment capital of VND1.24 trillion ($54.36 million) and cover an area of 70 hectares in Thuan Nam district. It is one of the 18 projects that investment planning of which the Ninh Thuan People’s Committee has approved in November 2017.

The project’s construction is expected to be finished in May 2019 and it will start to generate commercial power one month later, with the capacity of 82 million kWh per year.

Established in 2001, PSTC distributes and installs various types of power control and power backup systems in Thailand. It is also involved in the production and distribution of electricity using renewable and alternative resources, as well as the construction of power plants.

Gelex currently has eight subsidiaries and one associated company, and it operates under the corporation model in the fields of industry, infrastructure, logistics, real estate, and investment.

In 2017, Gelex’s revenue exceed the VND10-trillion ($438.4 million) mark, while its after-tax profit exceed VND1 trillion ($43.8 million), signifying increases of 63 and 100 per cent.

This year, the firm expects to acquire VND15 trillion ($657.66 million) in revenue and VND1.82 trillion ($79.79 million) in pre-tax profit, and VND1.47 trillion ($64.4 million) in after-tax profit.

Ninh Thuan is considered an ideal investment destination for foreign investors to invest in the solar power sector, which is demonstrated in the seriousness of foreign investors arriving to the province to find investment opportunities.

Notably, on February 14, Sunseap International, the international arm of Singapore’s leading clean energy provider Sunseap Group, signed an agreement with InfraCo Asia Development Pte., Ltd. (InfraCo Asia) to jointly develop a 168MW utility-scale solar power project in the province.

Accordingly, InfraCo Asia will take a minority stake alongside Sunseap’s existing partner, CMX RE Canada, while Sunseap International will continue to hold a majority stake in the project.

InfraCo Asia will bring its leadership expertise and provide funding for the development phase of the project. The project is expected to reach commercial operation by June 2019.

In another movement, on January 23, one of Vietnam’s leading private groups, BIM and Philippines-based AC Energy have started developing BIM 1 solar power plant in Phuoc Minh commune.

The project aims to satisfy the increasing energy demand and to replace fossil energy with more sustainable and renewable alternatives, contributing to the country’s economic development and improving living standards.

According to the plan, the solar farm project, which has a total capital of 30MW, will cover an area of 35 hectares with the total investment capital of VND800 billion ($35.2 million). It is expected to generate 50 million kWh per annum once it comes into operation.

The solar farm will be connected to the national grid in the third quarter of this year, which is the premise for accelerating other large-scale solar projects with a total capacity of 300MW to generate electricity in the first quarter of 2019.

Quiet Q1 for Hanoi's retail real estate market

Hanoi’s retail market began 2018 with a quiet first quarter, according to the latest quarterly report from CBRE Vietnam.

Total supply in the market remained at 790,000 sq m, unchanged since the second quarter of 2017. By location, Mid-town and the West accounted for 54 per cent of all modern retail supply while Other Non-CBD areas provided nearly 40 per cent of retail space.

In terms of market performance, beside the stability of the CBD due to limited supply, other areas witnessed an increase in vacancy rates, especially in Other Non-CBD locations, with a 0.7 per cent increase quarter-on-quarter.

To deal with worsening occupancy rates and pressure from upcoming supply, especially with two new projects to be launched in the second quarter, landlords in the West and Other Non-CBD locations have begun offering more flexible leasing strategies in order to attract tenants. Average market rental rates dropped slightly in the first quarter. by 0.9 per cent quarter-on-quarter, though rose 0.2 per cent year-on-year.

In terms of tenants, Convenience Stores and Supermarkets continued their rising trend, with continued expansion by existing players such as Circle K and Vinmart+.

The outlook for this category remained bright, with consumer trends shifting further towards convenience as Vietnam’s retail market transforms from traditional to modern retail.

Moreover, new residential developments have formed new residential clusters, creating demand and space for Convenience Stores and Supermarkets. This type of retail, if and when it is included in a residential project, can also act as a value added service and facility, which in turn increases its appeal to buyers.

Acknowledging this potential, certain local developers have begun to venture into the sector through either cooperation with international brands or self-operation. Examples include the joint venture of Son Kim Land and South Korean retailer GS Retail, the launch of Qmart and Qmart+ by the T&T Group, and the FLC Group’s F-mart.

Ms. Nguyen Hoai An, Director of Research and Consulting Services at CBRE Vietnam said that developers of shopping malls must continually innovate to attract tenants and shoppers.

Meanwhile, in Ho Chi Minh City, total supply as at the end of the first quarter was 880,840 sq m net leasable area (NLA).

Non-CBD areas welcomed one new supply of 60,000 sq m NLA from Van Hanh Mall, while there was no new supply in the CBD. Van Hanh Mall was 90 per cent occupied when it opened, by more than 200 international and local brands.

The vacancy rate in the CBD area was virtually zero in the quarter thanks to limited supply. The first quarter recorded the highest occupancy rate ever seen in Ho Chi Minh City. In the Non-CBD area, the vacancy rate was unchanged from the previous quarter, at 6.9 per cent, and down 6.1 percentage points year-on-year.