The country’s total retail sales and services revenue reached 2.24 quadrillion VND (98.6 billion USD) in the first seven months of this year, a year on year increase of 10 percent.

Customers shop for fresh fruit and vegetables at AEON MALL in Hanoi’s Long Bien district

The revenue, excluding the price factor, gained a year-on-year increase of 8.7 percent in the first seven months, 0.3 percentage points higher than the growth rate in the first seven months of 2016, reported the General Statistics Office (GSO).

Of these, revenue of retail sales reached the highest at 1.68 quadrillion VND (74 billion USD), accounting for the three-fourths of the total revenue, a year-on-year surge of 20 percent.

GSO’s domestic trade expert Vu Manh Ha said growth in purchasing power of the people during the first seven months was due to surge in demand for accommodation and catering services in July because of high school graduation examinations.

In addition, the volume of foreign and domestic tourists rose sharply in the summer months, Ha said. Therefore, the revenue from accommodation and catering services in July went up by 11.3 percent while the revenue from tourism and travelling services managed the highest growth rate at 15.1 percent.

During the first seven months, the total revenue from accommodation and catering services stood at 278.6 trillion VND, an increase of 11.6 percent against the revenue in the same period last year.

The increase was higher than the growth rate of 8.8 percent in the first seven months of 2016.

The revenue from the tourism and travel sector showed a growth rate of 9.5 percent year-on-year in the first seven months of 2017 to 19.8 trillion VND.

Nearly 73,000 new enterprises set up in seven months

As many as 72,953 new enterprises were established in the first seven months of this year with a total registered capital of 690.74 trillion VND (30.39 billion USD), an annual increase of 13.8 percent in the number of enterprises and 39 percent in registered capital.

But experts said the growth rate of new firms and registered capital in the first seven months of 2017 had dropped sharply against the increase of 23.3 percent and 54.7 percent, respectively, in the first seven months of 2016.

According to the Ministry of Planning and Investment’s Department for Business Registration Management, during the January-July period, 21,383 enterprises registered to expand their investment capital with a total supplemented capital of 979.73 trillion VND (43.15 billion USD).

The average registered capital per enterprise was reported at 9.5 billion, up 22.2 percent over the same period last year.

The department said the number of newly-established enterprises has increased in almost every sector compared to the corresponding period last year, including 2,706 new enterprises in the real estate sector, up 68 percent; 812 new firms in the financial, banking and insurance sector, up 31 percent; and 385 new ones in the health sector, up 31 percent.

Only the shipping and warehouse sector witnessed a 6 percent decrease in the number of newly-established enterprises.

Meanwhile, 17,549 enterprises nationwide resumed operations in the first seven months of the year, an annual increase of 5 percent. However, 15,866 enterprises registered for the temporary suspension of business activities, up 16 percent over the same period last year, while 27,408 others ceased operations or are waiting to be dissolved, up 21 percent over the same period last year.

A few sectors reported a higher number of workers compared to the same period last year, including the financial, banking and insurance sector, up 48 percent; the health and social work sector, up 34 percent; the education and training sector, up 26 percent.

The total number of registered workers by newly-established enterprises in the January-July period was over 720,700, down 3.2 percent against the same period last year.

Over 100 Zhejiang firms display products at export fair in Hanoi

The sixth Zhejiang Export Fair in Vietnam kicked off at the International Centre for Exhibition in Hanoi on August 3 with the participation of over 100 businesses from the Chinese province.

Taofei, head of the Zhejiang business delegation, said the participating companies represent the “Zhejiang Made, All Need” symbol. They are prestigious firms and have generated considerable economic benefits for the province.

The 150 booths at the event showcase machinery, electrical and electronic equipment, construction materials, interior decoration, metals, textile-garment and materials, and consumer goods.

To Ngoc Son, deputy head of the Asia-Pacific department under the Ministry of Industry and Trade, said the sixth Zhejiang Export Fair in Vietnam is one of the biggest of its kind in Southeast Asia.

It continues to be an opportunity for Vietnamese and Zhejiang firms to optimise their advantages, increase experience sharing, and foster export-import activities, helping to fuel Vietnam-China trade, he noted.

He added his ministry will coordinate with relevant agencies of China to take various measures to promote bilateral trade. The Vietnamese and Chinese trade ministries are also working with the Zhejiang administration to finish procedures for the opening of a trade promotion office of Vietnam in Hangzhou city this year.

Taofei said Zhejiang boasts the most favourable natural conditions and the fastest economic growth rate in China. It has set up direct economic relations with more than 230 countries and territories around the world. The province’s total trade revenue reached 33.64 billion USD in 2016, including 26.78 billion USD of exports.

Trade turnover between Vietnamese localities and Zhejiang hit 6.7 billion USD in 2016, up 12 percent year on year. While 186 Zhejiang businesses have poured 1.68 billion USD into Vietnam, 26 Vietnamese firms have also invested in the Chinese province with total capital of 20 million USD.

Vietnam is currently the biggest trade partner of Zhejiang in Southeast Asia and also a big investment destination of the province’s enterprises.

The three-day Zhejiang Export Fair is held at No. 91 Tran Hung Dao street by the Zhejiang provincial Department of Commerce, the Vietnam National Trade Fair & Advertising Joint stock Company (Vinexad), and the Ministry of Industry and Trade of Vietnam.

Industrial index up 6.5 percent in seven months

Vietnam’s Index of Industrial Production (IIP) posted a 6.5 percent year-on-year increase in the first seven months of the year, according to the General Statistics Office (GSO).

But GSO experts said it was lower than the 7.2 percent rate in the first seven months of 2016. They also warned that the growth of the national IIP in the first seven months was not sustainable because the index of inventory rose by 10.4 percent year-on-year, higher than the inventory index of 10.2 percent in the first seven months of 2016.

According to the GSO figures, the IIP of the manufacturing and processing sector rose by 10.6 percent over the same period last year. However, the mining sector, one of key industrial production sectors, saw a 7.5 percent IIP drop during the first seven months.

Several production sectors surged on the IIP, including metal production (35.4 percent), electronics, computer and optical products (15.2 percent), and paper production (10.4 percent).

Output of some industrial products reached high growth during this period, such as televisions, up by 36.6 percent to 5.98 million units; rolled steel products, up 25.2 percent to 3.6 million tonnes; urea fertilizer products, up 15.2 percent to 1.42 million tonnes; and electricity, up 8.2 percent to 108 billion KWh.

Many other products experienced lower growth or reduction in output, including motorbikes, coal, mobile phones, auto, crude oil and gas.

The office said the consumption index of the processing and manufacturing sector achieved a year-on-year increase of 8.4 percent in the seven months, contributing to the growth of the national IIP.

Expats share experiences in clean energy, big data

Overseas Vietnamese gathered at a workshop in Ho Chi Minh City on August 3 to share experiences with the municipal administration in developing, attracting investment and transferring technology in “clean energy” and “big data”.

The workshop, co-held by the State Committee for Overseas Vietnamese Affairs, the HCM City Institute for Development Studies and the organizing board of the Vietnam Economist Annual Meeting 2017 (VEAM 2017), aims to encourage overseas Vietnamese’s contributions to the city’s development.
 
Vu Quang Minh, Assistant the Foreign Minister, spoke highly of the role played by Vietnamese scientists and experts living abroad, affirming that knowledge is the strength of the overseas Vietnamese community and huge potential of the country.

During the workshop, Vietnamese experts and scientists both in and outside the country, together with representatives from state agencies, discussed matters on developing clean energy; building and effectively using database systems; policy-making; increasing cooperation between experts at home and abroad in fostering the city’s development, especially in “clean energy” and “big data”.

Dr. Tran Duy Chau, an expert from the Electricity of France, said HCM City and southern localities in general have huge potentials for solar energy and urged the city’s authorities to work out a policy for solar energy development.

Dr. Le Minh Hoa, a lecturer at the UK’s University of Northumbria, underlined the importance of studies of smart public lighting and communication systems to optimize the use of energy.

According to Dr. Vu Tuong Thuy, a lecturer of the UK’s Nottingham University in Malaysia, said Vietnam has many good conditions to apply “Big Data” as the country has young and skilled labour forces alongside with developed IT infrastructure.

To nurture the sector, Thuy suggested a better-planned programme by the government and improved training in data science.

First int’l standard cold storage comes to central Vietnam

The Transimex Joint Stock Corporation, listed in the HCM City Securities Exchange as TMS, officially put into operation its first international-standard cold/chilled storage unit at its logistics centre in Hoa Cam Industrial Zone (IZ) on August 3Thursday. 

General Director of Transimex Le Duy Hiep said the frozen storage, which covers a 1,500sq.m area with a capacity cargo load of 2,000 tonnes, aims to provide local and foreign direct investment (FDI) operatives in the central and Central Highlands region a high quality warehouse service for worldwide exports.

Hiep said the number of international standard cold/chilled storage remains deficient compared with the volume of farm produce and seafood shipments in the central and Central Highlands region.

The tailor-made SOP (Standard Operating Procedure) storage, which was built with an investment of 20 billion VND (885,000 USD), will also provide various logistics services, including air and sea freight, bulk cargo and trucks in connection with trading route in the East-West Economic Corridor and a system of deep sea ports at Tien Sa and Lien Chieu, as well as airports.

In 2015, Transimex introduced its first logistics centre in the park on total 16,200sq.m including a 9,300sq.m general warehouse with an automatic cargo forklift and loading system for importers

Hoa Cam IZ, which covers on 137ha in southwest of Da Nang, has attracted 55 businesses with an 81 percent filling up rate.

The central city plans to get a boost as a centre of hi-tech industries, logistics service and tourism in central Vietnam.

FWD signs exclusive 15-year bancassurance partnership with Nam A Bank

FWD Vietnam Life Insurance Company Ltd. (FWD) and Nam A Commercial Joint Stock Bank (Nam A Bank) have signed an exclusive 15-year bancassuarance partnership to provide comprehensive and diverse life insurance products for Nam A Bank’s customers.

With this agreement, FWD will expand its bancassurance distribution network as it aims to become a leading insurer in Vietnam that changes the way people feel about insurance.

"FWD has achieved remarkable growth in the last six months, and our bancassuarance distribution channel has been a significant driver of this," said Anantharaman Sridharan, FWD general director. "Our strength in providing innovative and simple products and a unique customer experience supported by leading digital technologies will complement Nam A Bank’s network for the ultimate benefit of their customers and the availability of insurance. 

This is aligned with our vision to change the way people feel about insurance and help Vietnamese families live life to the fullest.”

Luong Thi Cam Tu, Nam A Bank’s general director, said, "We have studied many partners to choose the most suitable one for cooperation, diversifying services, and maximising Nam A Bank’s internal strength. 

With a strong financial position and extensive experience in insurance in Asia, FWD has become our exclusive partner. 

Through our stable customer base and nationwide network as well as the same strategy of “customer centricity” and mutual trust, I believe that the cooperation between Nam A Bank and FWD will bring good results not only in the insurance sector, but also in the development of both companies."

Through this collaboration, FWD is once again taking solid steps to build a market-leading bancassurance distribution platform by investing in people, technology, partners, and networks.

FWD Group’s network spans Hong Kong and Macau, Thailand, Indonesia, the Philippines, Singapore, Vietnam, and Japan, offering life and medical insurance, general insurance, and employee benefits across a number of its markets.

Nam A Bank started operating on October 21, 1992 and was one of the first commercial banks to be established after the Banking Ordinance was issued in 1990 in the context of the economic reform in Vietnam.

At present, Nam A Bank aims to become one of Vietnam’s most modern banks, based on fast, strong, safe, and effective development, as well as one of the country-leading banks to make endless contribution to socioeconomic development.

Growing a digital economy in Vietnam

Vietnam should use emerging information technology including cloud computing, e-commerce and the internet of things to shore up the digital economy, said experts at the second Vietnam Private Sector Forum.

The digital economy has enormous potential, General Secretary Dao Huy Giam, of the Forum said at the seminar in Hanoi, citing rapid growth in information consumption, mobile payments and e-commerce.

Traditional industries should pick up the pace to transform the Vietnamese economy to become more digitized, intelligent and green.

Although there is no way to accurately measure, experts all agree, said Mr Giam, that the Vietnamese domestic private sector remains in the dark ages and lags far behind the rest of the world when it comes to moving into the digital age.

Some experts who have attempted to quantify the matter suggest that only 1.7% of local businesses are involved in the digital economy and contribute less than 5% to the gross domestic product.

These experts also say that a worker employed by a foreign private sector business in Vietnam contributes three times more added value that a domestic worker and most of this can be attributed to the use of computers.

In addition, Mr Giam noted, that information technology in and of itself creates new segments and new business models for the economy.

Vietnam should bolster emerging tertiary sectors including intelligent transportation and remote education to improve public services, Mr Giam said, adding that the internet of things can also contribute to making governmental affairs more transparent.

In other words, what Mr Giam was referring to is that the Vietnam private sector can be viewed from the perspective it has three components – the raw materials sector, the manufacturing sector and the services (or tertiary) sector.

Services is the sector of the Vietnamese economy that principally provides products to consumers using goods produced by the other two sectors.

Mr Giam emphasized the need to further open the telecom segment of the services sector as well as provide more support for research and development of innovative technology, and cyberspace security.

The digital economy has the potential to become a major growth driver for the Vietnamese economy, which lags woefully behind the rest of the world in the modern age of the Internet in which we live.

In his speech, Mr Giam called for more effort on integrated development of small firms and industrial giants.

Businesses should establish open Internet platforms to better allocate resources, match supply and demand, promote coordinated research and development, and build a new industrial ecosystem.

As a result, innovation would be more efficient, manufacturing would improve, and economic and industrial upgrades would be pushed forward, Mr Giam said.

During the seminar, Mr Giam also urged continued efforts to offer faster and more affordable Internet services, which would help improve business competitiveness and increase movement to the digital economy.

Nguyen Trung Chinh, head of the VPSF working group on the digital economy, in turn noted that the best estimates of e-commerce revenue for 2016 in Vietnam was an embarrassing low US$900 million.

Though these estimates amount to little more than guesses as no one knows the true figure— from a country that has 60 million smartphone users the numbers indicate there is substantial room for growth in e-commerce.

Today, with more than half of all internet traffic coming from a mobile device, it's the responsibility of the private domestic sector to step up – not the government – to grow the digital economy in Vietnam.

Printing and advertising expo opens in HCM City today

Running at the Phu Tho Indoor Stadium in Ho Chi Minh City August 3-6, an advertising expo reveals the print-integrated future of media communications, say exposition organizers.

This 8th annual edition of the largest printing tradeshow in Vietnam should impress attendees with a dazzling array of the latest technologies, cutting-edge show floor attractions, and unique new applications from which to discover their next profit opportunities.

This year's ‘how-to’ focused exhibition and conference program has been designed to intrigue, educate, and demonstrate the multifaceted and profitable new future of print in advertising.

In addition to the very latest technologies and fresh solutions, show-goers can discover and learn how to use new applications to expand their service offerings, boost their bottom lines, and forge a path into profitable new markets.

Answering the call from the ever-growing segment this year are some 100 companies showcasing their wares in roughly 300 pavilions— to present for attendees the full breadth of printing and advertising technologies and offerings.

DataSpeaks Vietnam’s retail sales jump to US$74bln in first 7 months

The Republic of Korea's GS Retail has chosen Vietnam as the first foreign market to launch its GS25 convenience store brand in.

GS25 will be the first Korean convenience store chain operator to enter the Vietnamese market.

“We received requests from many countries, including China and other Southeast Asian countries, to export our brand,” said a GS Retail spokesman. “After months of research, we concluded that Vietnam had the largest potential for growth.”

Convenience stores have been taking off across Vietnam this year with the "aggressive expansion" of some foreign brands that now hold a combined 70 percent of the market share, according to the trade ministry.

A combination of rapidly rising incomes and relaxed regulations for foreign retailers have made it the perfect time to dive into the Vietnamese market.

GS Retail expects its entry into the Vietnamese convenience store market to be a stepping stone for further overseas expansion, particularly in Southeast Asia and China, said a company official.

In June, Japanese giant 7-Eleven stepped into the market and now has four outlets in Ho Chi Minh City.

Tuna export revenue surges 21 percent

Vietnam’s tuna export turnover rose 21 percent year-on-year to hit 271 million USD in the first half of the year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Tuna fillet was the key earner, accounting for more than 48 percent of total tuna exports, followed by canned tuna (30 percent) and other processed tuna (15 percent).

Vietnam exports tuna to 97 countries and territories across the globe, with the US, the EU, Israel, ASEAN, Japan, Canada, China and Mexico the major markets. Those countries accounted for 88 percent of total tuna export value in the first six months.

Notably, tuna shipments to Mexico rose 125 percent, with the country surpassing Canada and China to become Vietnam’s sixth largest tuna importer.

Despite the impressive growth, tuna exports are encountering difficulties in raw materials and import duties in some key markets.

VASEP has proposed the Directorate of Fisheries under the Ministry of Agriculture and Rural Development develop purse seine fishing. 

It suggested the Directorate of Fisheries and the Ministry of Agriculture and Rural Development work with the Ministry of Industry and Trade (MoIT) to reach an agreement with the EU on a quota for tuna exports to the market.

VASEP also requested the MoIT consider reducing tariffs on tuna exports to Japan to zero percent like Thailand and the Philippines to improve the competitiveness of Vietnamese products. -

Sendo collaborates with Google on online advertising service
     
E-commerce platform Sendo.vn has announced it is collaborating with Google to digitise and offer automatic online advertising service Shop Ads to 120,000 merchants on its marketplace.

“At Sendo.vn, we are committed to helping SMBs and consumers take advantage of the opportunities online. Vietnamese consumers, in turn, can access a wide range of products and choices in over 25 categories, supplied by 120,000 merchants. Therefore, this cooperation between Sendo.vn and Google is not only a crucial development strategy by Sendo.vn for its shops, but will also contribute to Viet Name’s e-commerce development,” Tran Hai Linh, CEO of Sendo.vn, said.

“We are happy to work with Sendo.vn to help SMBs in Viet Nam grow and take advantage of the opportunities online,” Matthew Heller, head of Channel Partnerships, Southeast Asia, said.

"Sendo.vn offers knowledge, experience and end-to-end customer service on digital advertising, so that merchants can focus on running their businesses.”

SMBs can sign up for this service directly on the Sendo.vn website with just one click and their Google advertising campaigns will go live immediately.

With a reasonable budget of only VND80,000 (nearly US$4) per day, Sendo merchants can reach at least 1,200 potential customers directly on the largest search advertising system Google, spending only VND60 (3 US cents) per customer. Moreover, Sendo merchants pay only when someone clicks on their ad. If no one clicks, they do not need to pay.

Over 300 Sendo.vn merchants have signed up to use the Shop Ads service through this collaboration and have recorded positive results.

The owner of “Chat,” a household utilities e-commerce site, said his business has grown after using Shop Ads. “Since using the service, I have seen more customers visiting my online shop on Sendo.vn. When people search the key word “household utilities” on google.com.vn, they will see the ad for my shop. My sales have grown more than 40 per cent since I started using Shop Ads compared with previous months.”

According to a survey by Vinalink, Google ranked second in online advertising revenue in Viet Nam with VND2.2 trillion in 2015, following Facebook with VND3 trillion. Meanwhile, total revenue from all Vietnamese advertising enterprises had a smaller market share with VND1.9 trillion. 

HCM City set to host food, beverage, packing machinery expo
     
The 21st annual VietFood, Beverage and Professional Packing Machines expo will be held in HCM City from August 9 to 12.

More than 500 companies from 20 countries and territories will set up 600 booths to showcase their products, technologies and services used in the food and beverages, machinery and equipment, packing and food preservation, and franchise sectors.

Local companies will account for half the total number with popular products like tea, coffee, other beverages, processed agricultural products, and fruits and dried fruits.

The exhibition will see for the first time participants from countries like the Czech Republic, UAE, Brazil, and France.

The expo will feature other events on its sidelines held in collaboration with the Vietnam Association of Retailers, HCM City Food and Foodstuff Association, Vietnam Beverage Association, Young Business Association, and the HCM City Business Association.

Conferences on food and beverage retailing in Viet Nam and global retailing trends will be held in collaboration with the HCM City Food Association and Vietnam Association of Retailers.

The event, to be held at the Saigon Exhibition and Convention Center in District 7, is being organised by the Vietnam National Trade Fair and Advertising Company in collaboration with the Ministry of Trade and Industry, Ministry of Agriculture and Rural Development and Food Standards Committee. 

Rubber enterprises earning high profits

Many rubber enterprises reported big profits in the first seven months of this year, thanks to export rubber prices rising 49 per cent compared to the same period last year.

According to the Ministry of Agriculture and Rural Development, rubber export volumes in July reached 154,000 tons worth $230 million, bringing the total in the first seven months to 639,000 tons worth $1.13 billion, increases of 12.8 per cent in volume and 59.2 per cent in value year-on-year. 

The average export price of rubber in the first seven months reached $1,850.9 per ton, up 49 per cent year-on-year. China, Malaysia, and South Korea are the three largest rubber markets for Vietnam, accounting for 60.3 per cent, 5.4 per cent, and 4.8 per cent, respectively.

Meanwhile, rubber imports in July totaled 47,000 tons worth $87 million, for a figure in the first seven months of 293,000 tons worth $627 million, up 27.8 per cent in volume and 79.9 per cent in value year-on-year.  

Rubber exports to China are stable in terms of quantity but the quality of products is uneven. As at July 13, rubber exports to the country stood at 35,250 tons. 

According to the Association of Natural Rubber Producing Countries (ANRPC), the global natural rubber supply deficit has risen to nearly 600,000 tons, while the association forecasts a deficit of approximately 700,000 tons.  

Vietnam is among the three largest rubber exporters in the world, after Thailand and Indonesia.

In April, it exported the most mixtures of natural and synthetic rubber, at 26,213 tons, worth $47.5 million, accounting for 50.5 per cent of volume. Its SVR 3L rubber output was 8,643 tons, down 5.7 per cent in volume over the previous month, while its SVR 10 rubber export was 5,191 tons, down 11.4 per cent in volume.

China is the leading importer of Vietnamese rubber, accounting for 63.2 per cent, with 190,000 tons worth $383.7 million, a 12.08 per cent rise in volume and nearly 90 per cent in value over the same period last year.

Rural FMCG market surpasses Urban in Q2 growth

Both the Urban and Rural fast-moving consumer goods (FMCG) markets are growing at the same pace, according to the latest report from Kantar Worldpanel, driven mainly by paid price increases. 

In the short term, though the FMCG market slowed down in the second quarter, growth in Rural now surpasses that in Urban 4 cities, which includes Ho Chi Minh City, Hanoi, Da Nang, and Can Tho.

The report stated that despite the market slowdown in the short term, the non-food sector continues to enjoy impressive growth and is growing faster than the food sector in both Urban 4 cities and Rural. 

Dairy and Packaged Foods are the only sectors showing negative performance in Urban and Rural. Within these sectors, big categories (with high value contributions to total FMCG) such as Milk Powder (Urban), Fish Sauce, Cooking Aids, and Instant Noodle (Rural) fell in volume consumption during the second quarter.

Liquid Detergent is the most outstanding category in the Home Care sector. The category is doing well in terms of both attracting more new shoppers and also increasing volume consumption. 

Is this led by rising washing machine ownership, which now accounts for 83 per cent (+4.5 percentage points versus year ago) in Urban 4 cities and 28 per cent (+4.0 percentage points versus year ago) in Rural Vietnam? These numbers show huge potential to tap into this market.

Modern Trade channels continue to grow ahead of the market at double digit rates in Urban areas thanks to gaining more traffic. Most key retailers in Hyper & Supermarket are recovering. 

With a good performance during the first half of this year, modern retail is expected to maintain its momentum and achieve greater growth by the end of 2017.
Kantar Worldpanel is a global expert in shoppers’ behavior. 

Through continuous monitoring, advanced analytics, and tailored solutions, it inspires successful decisions by brand owners, retailers, market analysts, and government organizations globally. 

With over 60 years of experience, a team of 3,500, and services covering 60 countries directly or through partners, Kantar Worldpanel turns purchase behavior into competitive advantage in markets as diverse as FMCG and baby products, among many others.

SunCity Group to acquire casino project

Goal Summit Ltd., a subsidiary of casino junket operator the SunCity Group, is set to acquire a 34 per cent stake in a casino project in central Quang Nam province.

In a filing sent to the Hong Kong Stock Exchange last week, the company said that Goal Summit would buy the entire equity interest in Star Admiral Ltd. from Suncity International Holdings Ltd. for a total consideration of HK$600 million ($76.8 million).

Under the acquisition agreement, the purchaser intends to acquire 50,000 shares in Star Admiral Ltd, which is developing the Hoi An South Integrated Resort in a joint venture between SunCity, the Vietnam-based asset management company VinaCapital, and Gold Yield Enterprises Ltd., a subsidiary of the Hong Kong-based Chow Tai Fook Enterprises Ltd.

Goal Summit is chaired by Macau junket investor Alvin Chau Cheok Wa, who is also the owner of Suncity International Holdings, according to the filing.

“Through the acquisition, the group could acquire interests in the project and thereby tap into the promising tourism sector as well as the potentially expanding gaming market, in Vietnam, in line with the group’s objective of developing tourism-related business in the country,” SunCity said in the filing.

The Hoi An South development has received an estimated $89 million in investment to build the first phase of the integrated resort. 

The project will comprise of seven phases, with the first having a casino featuring 140 gaming tables and about 1,000 slot machines, as well as a golf course, hotel rooms and suites, and a condo-hotel.

The first phase is expected “to be completed on or before mid-2019,” the casino junket investor said.

Compact vehicles take center stage at Vietnam Motor Show 2017

Compact vehicles are stealing the spotlight at Vietnam Motor Show (VMS) 2017, which started in HCMC on Monday but was opened to public viewing on August 2. 

The event features more than 80 auto models, many of them small cars, as automakers and traders zero in on Vietnam’s low tax policy for such vehicles.

The 13th annual motor show is attended by 12 automakers, mainly members of the Vietnam Automobile Manufacturers Association (VAMA), including Chevrolet, Ford, Do Thanh, FUSO, Honda, Isuzu, Lexus, Mercedes-Benz, Mitsubishi, Nissan, Suzuki and Toyota. Truong Hai Auto Corporation (Thaco), which assembles and distributes Mazda, Kia and Peugeot cars, is not present at this event.

The VMS 2017 introduces the newest auto models which make consumers feel convenient, comfortable and safe thanks to advanced technology and innovation in the auto industry.

Though carmakers bring to the exhibition a big number of models, it is compact cars that capture the public attention.

Toyota Vietnam introduces Wigo model, a low-cost hatchback in the same segment with Kia Morning, Hyundai Grand i10 and Chevrolet Spark. The new model manufactured in Indonesia will be launched in Vietnam next year.

Suzuki Vietnam introduces Celerio cars manufactured in Thailand and equipped with a three-cylinder one-liter engine. It automatically shifts to the idling mode when the vehicle stops to save on fuel.

The low-cost segment has long been dominated by Kia Morning and Hyundai Grand i10, and the market is forecast to be more competitive with the presence of Suzuki Celerio and Toyota Wigo in the coming time.

In addition, Jazz hatchback, a model of Honda Vietnam, is introduced to the local market for the first time. This model will compete directly with Toyota Yaris, a small hatchback model imported from Thailand, and Mazda 2 assembled by Thaco.

Small cars with low costs are considered appropriate to customers’ demand as their prices are falling owing to preferential tax policies for compact cars.

Besides, manufacturers also introduce their latest models such as Chevrolet Vietnam with Trailblazer, a seven-seat luxurious Sport Utility Vehicle (SUV), and Bolt EV, a luxurious electric vehicle. Toyota Vietnam also brings the small-sized Avanza and its large-sized Alphard as multi purpose vehicles (MPV), the latter is meant to compete with Honda Odyssey. Meanwhile, MotorHome and XM Concept are also showcased by Isuzu Vietnam and Mitsubishi respectively.

In the high-end segment, enterprises showcase their signature products, such as GLA 2018 model of Mercedes-Benz Vietnam, a luxurious model with hybrid LS500h of Lexus Vietnam, X-Trail 2.5L SV 4WD Premium, X-Trail 2.0L SL 2WD Premium and Sunny 1.5L XV Premium of Nissan, and Explorer of Ford.

The show is also attended by 50 auto supporting enterprises. Visitors can have opportunities to try latest autos and get information on various vehicles such as passenger cars, sport cars and trucks. The exhibition seems to be a stimulant to buyers who are waiting until 2018 when the duty on completely built up (CBU) autos imported from ASEAN countries fall to 0% from the current 30%.

The VMS 2017 is taking place at the Saigon Exhibition and Convention Center (SECC) in District 7 from August 1 to 5, and is expected to attract 150,000-160,000 visitors.

Nguyen Kim to open five more shopping centers this month

Nguyen Kim Trading Joint Stock Company will open five more shopping centers in HCMC and Dong Nai Province this month, taking to over 50 the total nationwide two years ahead of schedule.

A new shopping center will be opened on Nguyen Thi Thap Street in District 7, HCMC tomorrow. The two-floor facility will be a standalone building covering 1,300 square meters. 

Nguyen Kim’s District 7 shopping center will have to compete with other electronics stores long established around the area like Dien May Xanh, Cho Lon and Thien Hoa.

In mid-August, Nguyen Kim will open three more centers in HCMC and one in Trang Bom District in Dong Nai Province.

All the five new shopping centers will be mid-scale ones, with a display area of around 1,500 square meters. 

Currently, Nguyen Kim focuses on shopping centers of three segments, small-scale venues of less than 500 square meters of display space each, mid-scale ones of around 1,500 square meters, and large-scale centers with more than 5,000 square meters of display space each.

In July, Nguyen Kim opened two other shopping centers in Bac Lieu Province and Gia Lai Province.

With new centers to open this month, Nguyen Kim will have 51 shopping centers of all scales nationwide. 

The fast tempo is attributed to the company’s move to join forces with Thailand’s Central Group, as Nguyen Kim sold a 49% stake to this strategic partner more than two years ago.

Therefore, since selling shares to Central Group in January 2015, Nguyen Kim has been able to expand its business faster. Before the deal, it used to take Nguyen Kim, which only had 30 shopping centers at the time, a long time to open any new center.

Moreover, thanks to the relationship with the Central Group, Nguyen Kim’s shopping centers have made their way to many Big C supermarkets nationwide, which are also under the management of the Central Group. This is also a good way for the firm to expand its network.

However, Nguyen Kim’s network expansion is still slower than that of Dien May Xanh, one of its main rivals in electronics retail. The retailer of The Gioi Di Dong aims for many more small stores, and so far, there have been 443 Dien May Xanh stores in all cities and provinces nationwide.

Mitsubishi and Audi recall cars in Vietnam

Mitsubishi Motors Vietnam and Audi Vietnam have just announced to recall 4,214 Mitsubishi cars with technical fault and 33 Audi Q3 autos with brake light malfunction, according to Vietnam Register.

Among the 4,214 Mitsubishi cars, there are 3,275 Mitsubishi Pajero Sport vehicles manufactured between 2011 and 2016, and 943 Mitsubishi Outlander Sport manufactured between 2014 and 2016. The recall starts from now and is expected to last two years.

According to the manufacturer, the supporting hinge of the backdoor can be rusted due to being incompletely painted, and can then be broken. The worst-case scenario is that the door can drop at any time, or the broken hinge can cause damage to people nearby.

To ensure safety, the manufacturer recommends customers to bring their cars to service centers for the hinge replacement as soon as possible. The service is totally free and should take around 30 minutes for each.

Meanwhile, 33 Audi Q3 cars in Vietnam manufactured between June 2014 and November 2016 with brake light malfunction are being recalled until the end of October. Audi Vietnam will check and update the management software to ensure the brake light works even with electronic emergency brake. The expected time for this update is around 30 minutes per car.

According to Audi importers in Vietnam, there has been no case reported with this malfunction, and all Audi Q3 still runs safely.

HCMC targets many budget housing projects

The HCMC government in the next few years will construct about 20,000 social apartment units in addition to dormitories able to accommodate 35,000 workers and 10,000 students, according to a plan on social housing development for the 2016-2020 period.

The city government will focus on 39 social housing projects with nearly 45,000 units, covering a combined area of 137.3 hectares. However, the city will manage to finish construction of 31 projects with more than 20,000 units on an area of 49.1 hectares. 

At the same time, the city expects to finish nine dormitory projects with a total area of 23.35 hectares, with more than 5,700 rooms capable to accommodate 35,700 workers. As for student dormitories, the city will seek to complete two projects, providing accommodations for more than 6,700 students on an area of 74,000 square meters.

This year, the city will construct one 4,000-square meter project to accommodate 250 students. From 2018 to 2020, HCMC will call for investments in more dormitories for students.

To diversify types of social housing for low-income people, including those who want to rent or buy by installment plan, the city will construct apartments of various sizes with prices ranging from VND300 million to VND1 billion.

These projects will be constructed near industrial parks, export processing zones, universities and colleges in HCMC.

HCM City set to host food, beverage, packing machinery expo

The 21st annual VietFood, Beverage and Professional Packing Machines expo will be held in HCM City from August 9 to 12.

More than 500 companies from 20 countries and territories will set up 600 booths to showcase their products, technologies and services used in the food and beverages, machinery and equipment, packing and food preservation, and franchise sectors.

Local companies will account for half the total number with popular products like tea, coffee, other beverages, processed agricultural products, and fruits and dried fruits.

The exhibition will see for the first time participants from countries like the Czech Republic, UAE, Brazil, and France.

The expo will feature other events on its sidelines held in collaboration with the Vietnam Association of Retailers, HCM City Food and Foodstuff Association, Vietnam Beverage Association, Young Business Association, and the HCM City Business Association.

Conferences on food and beverage retailing in Việt Nam and global retailing trends will be held in collaboration with the HCM City Food Association and Vietnam Association of Retailers.

The event, to be held at the Saigon Exhibition and Convention Center in District 7, is being organised by the Vietnam National Trade Fair and Advertising Company in collaboration with the Ministry of Trade and Industry, Ministry of Agriculture and Rural Development and Food Standards Committee.

Audi Việt Nam recalls Audi Q3 over software
     
Audi Viet Nam is recalling 33 Audi Q3 units produced from June 2016 to November 2016 to check and update the information control system software.

The recall is under a global recalling campaign of the Audi AG. It was conducted after the Audi AG discovered that the brake lights of the vehicle did not activate when the parking brake was used during emergency braking.

In some cases, when using the handbrake, the emergency brake lights integrated into the module were not transmitted through the information control system to activate the brake lights. A vehicle approaching from behind, therefore, may not get any warning that the vehicle was stopping, increasing the risk of a crash.

Audi Viet Nam will collaborate with the Register Viet Nam to supervise the campaign, which will take place until October 31, 2017.

The company’s agents and authorised dealers will notify the vehicle owners and will update the vehicle software, free of charge. As for vehicles directly imported from other countries, the owners can enjoy service from Audi Viet Nam if it is approved from Audi AG. 

Shopee reports robust growth 1 year after entering Viet Nam
     
Shopee Vietnam, an e-commerce platform that provides a wide range of products, has garnered over four million listings and five million downloads since launching in Viet Nam a year a go.

Regionally, it has achieved an annualised gross merchandise volume of over US$3 billion with more than 40 million downloads, Pine Kyaw, managing director of its Vietnam operations, said. 

"We have grown tremendously over the past year and our performance has far exceeded our expectations. We have made several enhancements to our product offering, such as upgrading the platform to be user friendly for both desktop and mobile users, bringing about 24/7 customer service team to our users, and scaling up our seller programme to provide them with the tools and services to help their business grow."

Viet Nam is third important market behind Indonesia and Taiwan among Shopee’s seven markets, the others being Singapore, Malaysia, Thailand, and the Philippines.

The plan in this country is to focus on three key areas -- equipping sellers better, catering to a broader buyer segment and investing in its employees - Kyaw said.

Shopee aims to consistently enhance its platform and become the region’s e-commerce destination of choice, he said.

The e-commerce market in Viet Nam is still young and poised to expand in the coming years, he added. 

Coffee varieties under the microscope amid lower quality harvest

The yields and quality of the fiscal year October 1, 2016-September 30, 2017 coffee crop is down, said the Vietnam Coffee and Cocoa Association, in its latest preliminary forecast.

Nguyen Nam Hai, deputy chair of the Association, said it now expects coffee output for this year’s crop to touch approximately 1.4 million tons, which would be slightly below the yield of the last fiscal year crop.

Speaking at a recent forum in Ho Chi Minh City, Mr Hai noted that this year the weather is more favourable but the older less productive trees on many plantations mixed with the negatives of intercropping is holding production down.

Coffee prices are also down again this year due to the quality being lower than optimal, said Mr Hai. The fiscal year 2015/2016 crop experienced a 6% decrease in the sales price from 2014/2015.

Much, but not all, of this year’s crop is forecast to experience a similar drop due to continued quality concerns.

He said the varieties used by coffee growers need to be looked at more closely and some changes made.

There are more than 100 species of coffee trees, but only two – Arabica and Robusta – produce beans used to make beverages. Vietnam is the globe’s largest producer of Robusta, which grows in the country’s flat lands, is cheaper to grow, tastes more bitter, has more caffeine, and is less refined.

Robusta is used primarily in cheaper or instant coffees, whereas chains like Starbucks only buy Arabica, a species that evolved in the Ethiopian highlands and made its way by trade to the Middle East.

In some limited cases, Robusta is blended with higher quality arabica and used in espressos or for brewed blends.

Major European coffee buyers such as Nestle report they are struggling to obtain supplies of premium Robusta beans, claiming that this year’s crop coming out of Vietnam is musty and bitter because of having been soaked last autumn by heavy rains during the harvest, when farmers laid them out to dry.

The weather damage can also be seen in the colour -- more beans than usual are a brown or black hue rather than the typical and more desirable pale green colour of raw coffee.

Nestle, the world's largest coffee company, has been hit particularly hard, traders said, since it has also committed to buying only coffee that meets the voluntary Common Code for the Coffee Community, known as the 4C sustainability standards.

Sourcing 4C coffee has been more difficult this year due to roughly 20% lower production in Vietnam, as well as a second poor crop in Brazil, the globe’s second largest Robusta grower.

One trader said Nestle typically uses one quarter of Vietnamese Robusta coffee output each year.

While 4C is a widely used benchmark, only about 29% – 2.6 million tons in 2015 according to the Global Coffee Platform – of coffee grown globally meets Nestle specifications. Most 4C Robusta comes from Vietnam.

The bulk of 4C is Arabica coffee, typically used in premium blends, from countries such as Brazil and Colombia.

Indonesia, the world's third largest Robusta producer, grows some 4C coffee, but traders said it usually falls short of the Nestle taste test.

For now, quality issues have mostly affected companies that buy on taste rather than the look of Robusta beans and the coffee shunned by Nestle is expected to easily find a home and unlikely to be discounted.

The low-grade quality of the remaining stock in Vietnam is causing concern, as is the volume farmers and middlemen are holding at this point in the season. Traders estimated just 20-30% remains in the country, compared with 45-50% in a typical year.

Focus is also on discoloured beans, which some dealers say could make up 8 to 10% of the total crop. Traders say more than 20% of the remaining crop in Vietnam could be black beans, which affect taste and may have to be blended with the next crop.

Price differentials have not yet shifted dramatically, but the discount for lower quality beans suggests oversupply; grade 3 is trading about US$150-US$200 a ton below Grade 2 compared with about US$100 previously.

The longer we go, the more we realize we've drawn down the good coffee in Vietnam and only the lower problem quality coffee is remaining, said a third trader.

Vietnam catfish exporters worry as US applies tougher inspection procedures

Vietnamese catfish exporters are concerned that the door for their products to enter the US will be narrowed after a new inspection rule takes effect next month.

From August 2, all Vietnamese catfish shipments to the U.S. must be transferred to official import inspection establishments specified by the U.S. Food Safety and Inspection Service (FSIS) for re-inspection before they can be forwarded to importers and sold to American end-consumers.

The requirement is part of a series of new regulations stipulated by the U.S. farm bill, or the Agricultural Act of 2014, that was signed into law on February 7, 2014.

One of the biggest changes in the bill is that Vietnamese seafood entering the U.S. will be required to follow regulations set forth by the FSIS under the U.S. Department of Agriculture, rather than the U.S. Food and Drug Administration (FDA), as was previously the case.

The food safety standard regulated by the FSIS is a big change from the standards applied by the FDA and may take Vietnam many years to adapt to, according to the Vietnam Association of Seafood Exporters and Processors (VASEP).

For instance, according to a 2016 report, the FSIS will require a review of 100 percent of imported products starting September 2017, instead of the only one percent required by the FDA.

Truong Dinh Hoe, VASEP general secretary, told Tuoi Tre (Youth) newspaper earlier this week that the new requirement that catfish exports be re-inspected before delivery to importers to the U.S. will negatively impact Vietnamese exporters.

“It is certain that Vietnamese companies will have to spend more time and money transporting the shipments to the FSIS-specified warehouses and then to their own facilities,” Hoe said.

Duong Ngoc Minh, general director of Hung Vuong, one of Vietnam’s leading catfish exporters to the U.S., concurred with Hoe’s concern, explaining that following the new rule will cost both time and money.

“There are only a little more than 20 warehouses on the FSIS list, which are located across the U.S. and may not be close to seaports where the Vietnamese catfish shipments arrive,” he explained.

Vietnamese seafood businesses are losing sleep over the higher and tougher technical barriers set by the U.S., as the North American country is their largest catfish importer.

However, according to Hoe, the VASEP general secretary, while it cannot be denied that the threat is real, the future is not as gloomy as businesses might think.

“It is unreasonable to say that these new rules will shut the door on Vietnamese catfish entering the U.S.,” Hoe said.

The VASEP official explained that these policy changes were announced well in advance to affected businesses, and Vietnamese exporters did have a window of preparation for the new rules.

Vietnamese businesses and relevant authorities have indeed made moves to embrace the changes, he added.

“Exporters only need to ensure the quality of their products and everything will go on as normal,” he said.

“You have to pass strict inspections no matter which countries you sell your goods to.”

Hoe also rectified allegations that 100 percent of Vietnamese seafood exports to the U.S. will be taken for sample testing.

“The ratio of samples to be taken depends on the inspection history of the exporters,” he said.

“Since the oversight task was transferred to the USDA from the FDA, the ratios were increased to only 20-30 percent, and never 100 percent.

“There will be no such rule as 100 percent of exports must be inspected as Vietnamese businesses fear.”

Minh, the Hung Vuong Co. executive, also said the future is not so bleak.

“Even before the U.S. enacted these new regulations, most Vietnamese seafood exporters still failed to sell their catfish to the market,” Minh said.

There are currently only three Vietnamese companies qualified to export catfish to the U.S. under low anti-dumping duties, while other businesses are slapped with exorbitant tariffs and unable to afford shipping to the U.S.