Vietnam’s largest manufacturing solutions show opens

The 2015 Vietnam Metrology, Tools & Automation (MTA) Show, the largest on manufacturing solutions in the country, opened in Ho Chi Minh City on July 7 with the participation of 350 exhibitors from 20 nations and territories.

The 14th exhibition showcases state-of-the-art products and machines in metal cutting and shaping and tools for Vietnam’s manufacturing industry.

It features 10 booths from Germany, Singapore, Japan, the Republic of Korea, Taiwan (China), and India. It also highlights Japanese brands like Aizaki, Asada, Kira, PMT, Mishima and Towa.

Executive Director of the Japan External Trade Organisation (JETRO) in Ho Chi Minh City Yasuzumi Hirotaka hailed the development and potential of Vietnam’s manufacturing industry.

This annual event offers a venue for businesses to seek the latest services and technologies in precision engineering, machine tools and metalworking.

Several seminars, including one on the development tendencies of Vietnam’s manufacturing sector, are being held within the framework of the four-day show.

FDI to HCM City witnesses drastic uptrend

Ho Chi Minh City has enjoyed a boom in foreign direct investment (FDI) since early this year, luring 300 new projects totally capitalized at more than US$2 billion.

Additionally, supplementary capital to 55 valid projects has increased by US$411 million while newly-licensed levels and supplementary capital for investments have soared 100% compared to last year’s same period.

It is worth noting that Empire City Limited Liability Company were licensed to carry out a  US$1.2 billion observation tower complex project at Thu Thiem new urban area in district No2.

The company is accelerating the finalization of project implementation procedures.

Empire City Limited Liability Company has partnered with two joint stock real estate companies – Tien Phuoc and Tran Thai – and Denver Power Ltd of the UK to implement the major project.

Hau Giang calls for investment in agriculture

Authorities from the province of Hau Giang in the Mekong Delta have issued a policy to encourage enterprises to invest in agriculture during 2015-2020.

This policy will be implemented in a bid to promote sustainable development, to improve the output, quality and value of agricultural products.

Accordingly, the locality calls for investment in agricultural development projects in the districts of Long My, Vi Thuy, Chau Thanh, Phung Hiep, Chau Thanh A, Nga Bay Town and Vi Thanh city.

Organisations, firms and households that invest in livestock breeding , medicinal herb farming and infrastructure development for processing and preserving agro-forestry-aquaculture products, will receive investment incentives and support from the local authorities.

Additionally, investors will also be assisted in training to improve human resources, expanding the market, and applying and transferring technologies.

Local authorities have also focused on simplifying administrative procedures in order to facilitate investor’s long-term interest in the locality.

Hau Giang province has budding potential along with favourable conditions to produce agricultural products and to develop agricultural industry in the area.

The locality has 83,000 hectares for rice cultivation and 30,000 hectares to grow sugar cane and fruit trees.

Businesses to purchase Lam Dong farm produce

More than 80 businesses have signed contracts and memoranda of understanding (MoUs) on cooperation in producing and consuming farm produce in the Central Highlands province of Lam Dong.

The contracts and MoUs focus on the consumption of vegetable and fruit specialties in Da Lat city, including potato, tomato and sweet pepper.

Customers included companies from Hanoi, Ho Chi Minh City, southern Dong Nai and Binh Duong provinces.

Notably, Korean-invested Lotte Mart supermarket chain inked several MoUs involving the supply of Da Lat vegetables and fruits to its supermarkets across the country.

Lam Dong now has nearly 40,000 hectares of land dedicated to hi-tech agricultural production, accounting for 15 percent of the province’s total farming land.

It is also home to more than 300 enterprises operating in farm produce production and processing. The export value of agricultural products makes up 80 percent of the province’s total export turnover.

AIA Vietnam wins Trusted Brand title for third straight year

The AIA Vietnam Life Insurance Co. Ltd recently won the award Vietnam Trusted Brand 2015, the third year in a row it received the title, the Lao dong (Labour) daily reported.

The title was presented as a result of a survey on reliable products and services conducted by the Vietnam Standard and Consumers Association and the Nguoi tieu dung (Consumers) newspaper.

The AIA Vietnam also secured the Golden Dragon Award of the Vietnam Economic Times for the ninth year and was among prestigious and quality products and services selected by consumers for three consecutive years.

Officially operational in Vietnam in February 2000, the firm has set up more than 100 offices in 52 provinces and cities nationwide and is catering for nearly 500,000 clients.

By the end of last May, it paid over 1.78 trillion VND (82.79 million USD) in insurance benefits for nearly 270,000 cases.

Tax exemptions for many products exported to EEU

Various Vietnamese products exported to Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan as members of the Eurasia Economic Union (EEU) will enjoy a 0% tax when the free trade agreement between Vietnam and EEU takes effect.

According to the Ministry of Industry and Trade, Vietnam’s apparel, rubber footwear and wooden furniture will be free from tariffs under the FTA, which was signed on May 29.

Garment enterprises buying or importing materials to make products in Vietnam will enjoy preferential tax treatment. However, the five countries will limit volumes of goods imported from Vietnam as they fear that a third country might take advantage of the tax incentive to boost sales to their markets.

For instance, when the agreement comes into force, apparel imports from Vietnam subject to a zero tax will not be more than double Vietnam’s average exports to the five markets in 2011-2013. The limit will rise 5% each year from 2015.

After every three years, the member states of the agreement will review this provision and revise it if necessary.

The zero tax rate will also be applicable to seafood imports from Vietnam. Nevertheless, products like shrimp, octopus and tuna must meet CC or VAC 40% requirements (value-added content no smaller than 40% of FOB price and production process of final products taking place in one of the member countries).

In addition, Vietnamese enterprises will be allowed to export 10,000 tons of rice to EEU members at a 0% tax.

The agreement will take effect 60 days after the EEU members and Vietnam announce their ratification of the deal.

Go-ahead for new airport triggers property frenzy in southern Vietnam

The law-making National Assembly’s green light to the construction of Long Thanh International Airport in the southern province of Dong Nai is forecast to turn the surrounding area into a hotspot for realty investors like what happened in 2009, an expert from US-owned realty consultant firm CBRE Vietnam said this week.

Transactions for properties in the vicinity of the proposed new airport, work on which is expected to start in 2018 following a resolution passed by lawmakers last month, have begun to pick up recently, Duong Thuy Dung, director of the research and consulting department of the consultancy, said on June 30 during a conference in Ho Chi Minh City, adding that volumes and value are still relatively small in comparison with other areas.  

With a vote of 428-17 plus 16 abstentions on June 25, the National Assembly approved the development of Long Thanh International Airport in the eponymous district of Dong Nai Province.

Although the project will be implemented in three stages, the resolution only sets a timeline for the first phase.

By 2025, the first phase of the airport, consisting of the construction of a runway and a passenger terminal capable of serving 25 million passengers a year, must be put into use.

The second runway and passenger terminal will be built in the next phase, which has no deadline, to increase the capacity to 50 million passengers per annum.

The airport will continue to be upgraded to receive 100 million passengers a year by the last phase.

The total estimate for the project is VND336.63 trillion, or US$16.03 billion. The first phase of construction is expected to consume VND114.45 trillion (US$5.45 billion).

The go-ahead for Long Thanh construction has warmed up the property market in the proximity of the site, which had been frozen given the downturn of the country’s realty market since 2009 and public opposition to the costly airport, Dung said.

“However, we are not expecting more lively transactions in the short term, but only in the medium term in the next 5-6 years,” she said.

Speculators, rather than investors, will trigger again a frenzy, if any, as they did in 2009, she added.

Dung’s view has been shared by many local market research and consultant firms like FPT Securities Company.

The final approval for the construction of Long Thanh has really breathed fresh air into the property market of Dong Nai, drawing the attention of many investors to the stocks of the firms owning land in the area, FPT Securities said in a report released earlier this week.

According to analysts at FPT Securities, the proposed Long Thanh airport has positively helped change the real estate market in the surrounding area since it is adjacent to District 9 and Thu Duc District of Ho Chi Minh City and a part of Binh Duong province.

As these areas will become the southern economic zone’s gateway to the sea, they will receive strong support from the government when it comes to infrastructure, which has been planned for the eastern part of Ho Chi Minh City, according to the FPT Securities report.

Previously, real estate products in Dong Nai were mainly industrial land, but now they are more diversified, such as urban areas, residential projects, resorts, commercial centers, luxury hotels, and golf courses, drawing both local and foreign capital inflows, it added.

Many other projects staying idle for a long time have also been revitalized as their investors are carrying out financial restructuring and joining hands with foreign investors.

Garment firms queue up for TPP tariff incentives

The wave of investment in Vietnam’s garment and textile production shows no sign of stopping.

Polytex Far Eastern Vietnam, a subsidiary of the Far Eastern New Century Corporation (FENC) from Taiwan, has received an investment certificate from the People’s Committee of the southern province of Binh Duong to invest US$274 million into building a textile and garment production site.

The 99-hectare project adds to FENC’s existing Apparel Far Eastern garment production facility established in 2007 in Vietnam Singapore Industrial Park I, also in Binh Duong.

This investment is specifically aimed at exploiting business opportunities presented by the Trans Pacific Partnership (TPP). The upcoming vertically-integrated production site for yarn, fabrics, dyeing and apparel aims to meet the TPP’s yarn forward rule.

FENC expects to invest up to US$320 million in the project, and turn Vietnam into its third vertically-integrated production site, after China mainland and Taiwan.

FENC is among foreign enterprises ramping up their investments in order to enjoy the zero tariff rate offered by the TPP.

Vietnam has recently received big garment and textile projects with combined capital of US$2.27 billion invested by Hong Kong-based companies Tal, Crystal Pacific, Bros Eastern, and Haputex, and China mainland-based Texhong and Shengzhou.

Meanwhile, state-run Vietnam Textile and Garment Group (Vinatex) is also pushing its game to prepare for the potential signing of the TPP. Earlier this year, Vinatex announced it would invest in more than 30 major projects to develop supply chain links among its subsidiaries between 2015 and 2017.

The group recently got permission from Nam Dinh provincial People’s Committee to build the US$400 million Rang Dong Industrial Park (IP) for integrated textile and garment supply in the province.

HCM City aims to unlock support industry growth

More than 150 entities from around the globe will showcase their wares in over 200 pavilions at the 2015 Vietnam International Supporting Industries Expo – VSI Expo 2015 – in Ho Chi Minh City on August 27-30, city officials have announced.

“This year’s second annual event at the Tan Binh Exhibition & Convention Centre will focus on the key industries of the city,” said Ms Le Ngoc Dao from the HCM City Department of Industry and Trade.

We fully expect over 10,000 products in total will be on display for the general public and business community to peruse she said – including clothing, textiles, footwear, electronics, automotive parts, auto assembly and mechanics to name only a select few.

The expo offers a great forum, in particular, for Vietnamese businesses to link with other manufacturers within the region and around the world to expand markets and access advanced technologies.

US emerges as biggest export market of Dong Nai

The US has become the largest export market of southern Dong Nai province, said Director of the provincial Department of Investment and Planning Bo Ngoc Thu.

The locality shipped 364 million USD worth of commodities to the US in June alone, up 2.8 percent from the previous month and roughly 15.9 percent year on year. This fairly contributed to the export turnover of almost 2 billion USD during the first half of this year, a year on year surge of 17.6 percent.

Key foreign currency earners include footwear, textile and garment, and timber. Footwear exports rose 21 percent year on year to 567 million USD, accounting for 29 percent of total exports to the US while textile and garment brought home 353 million USD, up 12 percent and representing 18.6 percent of the export turnover.

Iron and steel, machinery, bags, suitcases, hats and seafood are among other export products, responsible for around 2-5 percent of the total.

Dong Nai has established connection with several US groups in retail and marketing industries, such as Target and Made in USA Works, to not only gain more access for its goods to the US market but also cut costs from middlemen.

Additionally, Dong Nai Business Association and Made in USA Works have signed a Memorandum of Understanding for their cooperation.

Chris Neeley from Made in USA Works said it requires local enterprises to have fairly large capital to produce high-quality goods at reasonable cost and with higher productivity, in order to make inroad into the US market.

The US currently has 23 FDI projects in the province with a combined investment of 134 million USD.

Nearly 130 mln USD invested in Thua Thien-Hue IZs

The central province of Thua Thien-Hue attracted a total of more than 2.8 trillion VND (128.4 million USD) in its industrial zones in the first half of 2015, equal to 112 percent of the yearly target.

So far, local industrial zones have had 97 investment projects, of which 23 are FDI ones, totaling over 22 trillion VND (1.01 billion USD).

To achieve these results, the locality has carried out a lot of activities to attract investments.

In late May, the management board of industrial zones held an investment promotion conference in the southern region, which drew representatives from 25 investors, businesses and associations in Ho Chi Minh City, and Dong Nai, Binh Duong, and Ba Ria-Vung Tau provinces.

Thanks to the event, additional eight investors signed memoranda of understanding on cooperation.

Businesses in the province have enjoyed effective operation, especially those operating in tourism, food processing, cement, and garment and textiles.

The invested projects have helped increase production capacity, speed up technological renovation, improve the management capacity, and reduce imported products.

According to the industrial zone management board, during January-June, the total revenue of businesses in industrial zones reached more than 7.37 trillion VND (339 million USD), up 31.4 percent year-on-year. Their export turnover was 238 million USD, a 30-percent rise, and State budget collection was 845 billion VND (38.87 million USD), up 41 percent.

The industrial zones also generated jobs for over 17,800 labourers, up 8.9 percent against the same period last year.

Government works to create trust among businesses

The Government is pushing ahead with a programme on institutional and administrative reform in accord with its own Resolution 19/NQ-CP on improving business environment and national competitiveness.

The move has won trust among businesses both domestic and foreign, but much remains to be done.

According to Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc, a VCCI survey in April showed 46 percent of domestic private companies and 50 percent of foreign direct investment ones planned to expand operation in Vietnam. This is the highest figure since 2012, reflecting their positive assessment about the business climate in the country.

The resolution was also hailed at the mid-term Vietnam Business Forum.

Resolution 19 stipulates specific performance indicators to measure the efficiency of services delivery, including tax payment procedures, access to electricity, intellectual property protection, rights of investors and minority shareholders in line with the international standards and equality and transparency in credit access.

The Central Institute for Economics Management (CIEM) said remarkable progress has been made in the field of start-up business last year, citing the Law on Enterprises in 2014 helped reduce the registration time for business licences to three days – half of the set target of six days.

The VCCI survey also showed up to 70 percent of businesses said they are satisfied with the tax sector’s administrative reform.

Apart from positive outcomes, there are shortcomings in the field.

The Resolution requires that ministries, agencies and localities must issue plans of action to realise 13 missions outlined in the Resolution before April 30. However, by June 17, the Ministry of Planning and Investment received action plans from only 11 ministries, agencies, and 11 municipal and provincial People’s Committees. This means 14 ministries, agencies and 52 provincial and municipal People’s Committees have yet mapped out plans.

Foreign businesses still have reservation about the changes.

According to the European Chamber of Commerce (EuroCham)’s regular survey conducted just before the mid-term Vietnam Business Forum, a mere 21 percent of respondents said they are confident that changes in the new Law on Enterprises and Law on Investment will benefit their operation, while 41 percent of the surveyed companies said they have not fully understand the details of the new laws.

Investors suggested decrees guiding the implementation of the aforesaid laws be soon issued, adding that the requirement of having both business and investment registration licences has raised difficulties for foreign investors.

Regarding the electricity access, tax and social insurance payment criteria, Vietnam has witnessed improvements, but failed to reach the average level of ASEAN-6 (Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand).

Nghe An province shapes up livestock farming

The central province of Nghe An has requested shaping up local livestock husbandry as local farmers tend to increase herds of buffalos and cows while tapering off pig raising.

According to the provincial Department of Agriculture and Rural Development, Nghe An currently records about 708,500 heads of buffalos and cows, up 6.37 percent year-on-year. Meanwhile, pig breeding falls 2.7 percent to nearly 948,300.

It was due to frequent swine epidemic diseases, higher feeding costs and decreasing pork prices, leading to less profits for farmers.

The province also called upon firms to engage in animal husbandry that also guarantees consumption.

In Nghia Dan district, TH Group has developed a beef cattle farm, the largest-ever in Vietnam, with 45,000 cows, including 22,000 milch-cows.

Pilot regulations for Mekong Delta socio-economic connectivity

Attendees to a seminar in the Mekong Delta city of Can Tho on July 6 gave their feedback on pilot regulations for coordinating regional socio-economic development for 2016-2010, which stay on pillars of sustainable farming development and improved farmer resilience against climate change.

The draft regulations, which are to be submitted to the Prime Minister for approval, cover four chapters and 19 articles, aim to rally resources and play to strengths of 13 regional localities amid changing climate patterns.

Farming production will focus on value chains of producing rice, fruits, shrimps and tra fish while connecting links to expand markets and popularise brands, enhance farmers’ capacity and improving their livelihoods.

To get farmers adapted to climate change, transport infrastructure will undergo upgrade, especially those used for roads, waterway, seaports and aviation.

In the meantime, irrigation system will be improved in order to control water salinity whereas sea embankment and coastal ecological system be reinforced.

The 13 Mekong Delta localities include Long An, Tien Giang, Ben Tre, Tra Vinh, Vinh Long, Dong Thap, An Giang, Kien Giang, Ca Mau, Bac Lieu, Hau Giang, Soc Trang and Can Tho.

Vietnamese businesses updated on Vietnam-EAEU FTA

Vietnamese businesses operating in Russia were updated on the Free Trade Agreement (FTA) between Vietnam and the Eurasian Economic Union (EAEU) at a recent conference in Moscow.

At the July 4 event, which was co-hosted by the Vietnamese Embassy and the Vietnam Business Association in Russia (VBA), Trade Counsellor at the Embassy Pham Quang Niem introduced the FTA’s main contents, pointing out that the FTA will open up large markets for Vietnamese exports, such as garments, footwear, wooden and agro-fishery products.

According to Niem, the goal of US$10-12 billion in two-way trade between Vietnam and Russia is reasonable.

Meanwhile, Ambassador Nguyen Thanh Son urged the Vietnamese businesses in Russia to grasp the opportunities created by the FTA.

On the occasion, participants discussed concerns related to the implementation of the trade agreement.

The organising board also drew up a detailed document about the FTA comprising 31 most common questions and answers, to be circulated among the Russian-based businesses.

The government of HCMC will focus more on solving shortages of capital and problems with market access for enterprises in the final half of the year, said the city’s Party chief Le Thanh Hai.

Speaking at the closing of the 24th meeting of the HCMC Party Committee last week, Hai said the local government would support enterprises to sell products and find capital for their production toward the year-end.

The city government will create more opportunities for private firms to invest in various sectors and mobilize capital from different sources to increase development investments. The city will further tap its strengths in services, retail, tourism, banking and finance and urban agriculture to fuel its economic growth.

Hai told agencies to work harder to achieve socio-economic targets this year.

Hai said the city’s economy expanded 8.55% in the first half, the highest first-half growth in three years. Services sector grew higher than agriculture, industry and construction.

Total retail sales of goods and services in the city picked up 10.2% in the period while industrial production inched up 6.5%.

Though HCMC posted high economic growth in the period, there were still problems. Exports fell by 6.3% year-on-year to nearly US$14.6 billion due mainly to the oil price decline.

Agro-aqua-forestry products, which account for nearly 20% of the city’s export turnover, declined by almost 10% year-on-year due to falling rice exports.

The city exported 339,000 tons of rice in the period, plummeting 73% in volume and 38% in value.

GEM to invest US$20 million in realty firm

Investment fund Global Emerging Market (GEM) has clinched an agreement to spend nearly VND440 billion (US$20 million) buying shares of Hoang Quan Consulting-Trading-Service Real Estate Corporation (HQC) over 30 months starting from July 1.

The investment of GEM in the Vietnamese property enterprise has been announced on the websites of the State Securities Commission of Vietnam (SSC) and the Hochiminh Stock Exchange (HOSE).

Within the framework of an investment promotion conference organized by the Ministry of Finance in New York City, HQC chairman Truong Anh Tuan and GEM president and chief executive officer Christopher Brown inked the investment deal with representatives of the ministry, SSC and HOSE witnessing.

Brown said the investment fund has watched HQC’s business activities for a long time, particularly after the property developer unveiled its strategy to develop social housing projects as this segment is expected to see stronger growth in the future.

Tuan told the deal with GEM is a business highlight for HQC in particular and other listed enterprises in general in attracting foreign direct investment. HQC will use the fund to implement its social housing projects.

GEM is the third foreign partner of HQC’s housing projects over the past 12 months after South Korea’s LG and Hyundai.

Earlier, Tuan said HQC would concentrate resources on developing social housing projects and look to obtain revenue of VND1.6 trillion from this segment this year.

GEM is now managing total assets of US$3.4 billion and has successfully made 305 transactions in over 65 countries.  

GEM’s sub-investment funds include CITIC/GEM Fund, VC Bank/GEM Mena Fund, Kinderhook, GEM Global Yield Fund, GEM India Advisors and Brazil PE Fund.

Vissan opens food processing plant in Bac Ninh Province

Vietnam Meat Industries Limited Company (Vissan) has recently inaugurated a food processing plant in Tien Son Industrial Zone in the northern province of Bac Ninh.

The plant was built on an area of 5,000 s.q meters with a total investment of VND70 billion. It has a capacity of 20,000 tons of processed food per annum. The plant’s main works include a cold storage system to stockpile materials and end-products, production area, and infrastructure and facilities for production.

Van Duc Muoi, CEO of Vissan, said that the North of Vietnam has a population of more than 32 million people, with the launching of its plant in Bac Ninh Province, Vissan will be able to produce various products that fit each locality’s palate. Especially, when the plant comes into operation, it will help to timely supply products to rural and remote areas, reduce transport duration, carry out production planning to timely supply for distributors and regional retail network.

The plant is a part of Vissan’s development strategy in the period of 2015-2020 in Vietnam in general and in the northern market in particular, aiming to improve its food supply capacity.

150 enterprises to join VSI Expo 2015

Within the framework of the 2015 National Trade Promotion Program, the second  Vietnam International Supporting Industries Exhibition (VSI Expo 2015) will take place at Tan Binh Exhibition and Convention Center (TBECC) in Ho Chi Minh City on August 27- 30, announced Department of Ho Chi Minh City Industry and Trade.

At this year’s exhibition, the best products in the fields of textile and garment, footwear, electronics and informatics, automotive production, mechanic, and high-tech supporting industries will be on display.

Attending in the event, businessmen will be presented supporting policies from the 2015 National Trade Promotion Program.

The second VSI Expo 2015 is aimed to create advantaged opportunity for Vietnamese businessmen to not only popularize their high-tech supporting products to partners at home and aboard but also attract further foreign investment sources.

More than 150 domestic enterprises with 10,000 products have registered to join this year’s VSI Expo.

GE Vietnam & Cambodia has new CEO

US-based energy giant GE officially announced today the appointment of Pham Hong Son, country manager, Renewable Energy, GE Power & Water as the new CEO of GE Vietnam & Cambodia, driving the company’s local growth.

In his new role, Son will be responsible for growing GE’s businesses in Vietnam and developing a strategy to advance the company’s broader mission and objective in the country.

He will also be responsible for overseeing the company’s operations to ensure its compliance and quality is in line with local regulations.

 “As one of the first US companies to enter Vietnam, GE is contributing to the economic and social development of the country over the last 20 years, and I personally couldn’t be more honoured to have been chosen to take this leading role,” said Son.

“With trust from GE leaders and support from colleagues, I will try my best to consolidate GE’s presence and drive GE’s commercial growth initiatives in Vietnam and Cambodia market. I look forward to embarking this new journey with the whole GE team,” Son added.

GE is in the people business where the employees are nurtured and developed to become the next generation of leaders.  GE spends $1 billion a year on human resources training and development to ensure that talent grows within the company while offering partners and customers the opportunity to achieve the same.

During its 20 years of business in Vietnam (since 1993), GE has always shown its confidence and strong investment in developing local talents. All management positions are being held by Vietnamese and Son’s promotion is another concrete sign of GE’s continued localisation strategy.

Son joined GE Vietnam in January 2010 as market development manager and held this position for the last five years, supporting and driving business growth initiatives in Vietnam, building and strengthening government and industry relations and enhancing the brand awareness of GE in the country.

He was recently promoted as country manager, Renewable Energy, GE Power & Water, responsible for growth of GE’s wind business. In this role, Son has been working closely with different government agencies of Vietnam and US and multilateral bodies to support, advocate, and develop the new market – wind energy- for GE.

Prior to GE, Son spent over 10 years in spearheading sales and marketing in several foreign companies for various industries, such as oil & gas, power, pulp & paper, fertiliser and chemical industries.  Son holds a Bachelors’ degree in Industrial Automation and a Masters’ degree in Science from Hanoi University of Technology, Vietnam.

VNPT, Saigon Co.op ink deal

The Viet Nam Post and Telecommunications Group (VNPT) and the Saigon Union of Trading Co-operatives (Saigon Co.op) have signed a comprehensive strategic cooperation agreement to provide more benefits to local consumers.

The agreement aims at using their business networks and improving the competitive capacity of each side.

As planned, starting from August 1, mutual customers of the two companies will be offered preferential rates for VNPT's telecommunication services such as MegaVNN, MyTV, IPTV and VnEdu, and will receive discounts as well as Tet and birthday gifts at Co.opmart and Co.opXtra.

VNPT has 38 million active subscribers, while Saigon Co.op serves 300,000 customers a day throughout its retail network.

VN seeks stronger Guangdong ties

Deputy Industry and Trade Minister Tran Tuan Anh highlighted the importance of Guangdong Province as a large market for Viet Nam's rice and agricultural products as well as exports.

He said the province consumed 11.5 per cent of Viet Nam's total rice and grain exports to China.

He was speaking at a conference on Viet Nam-China rice and farm produce trade in Guangzhou City in China's Guangdong Province last week.

Anh said there should be closer co-operation between his ministry and Guangdong's government as well as food associations and businesses of both sides, in order to boost trade between Viet Nam and Guangdong, especially in rice and agricultural products.

Meanwhile, Guangdong Vice-Governor Zhao Yufang said there was room for co-operation between Viet Nam, a country with great advantages in agricultural production, and the more than 100-million-strong Guangdong Province, especially in rice trade.

She said the provincial government would continue to collaborate with Viet Nam's ministries of industry and trade, and agriculture and rural development in creating new playgrounds for business communities of both sides and enhancing bilateral trade ties.

During the conference, leaders of the Viet Nam Food Association briefed more than 100 leading Chinese agricultural firms about Viet Nam's rice production and export as well as competitiveness.

On his part, the head of the Guangdong Food Association spoke about the province's need for agricultural products, especially rice, and expressed willingness to set up an affiliation mechanism between the two associations and act as a bridge for business circles of both sides.

Earlier, Deputy Minister Anh had a working session with Guangdong Vice-Governor Zhao Yufang on measures to foster economic and trade partnership between Viet Nam and Guangdong.

Anh and the Vietnamese delegation also visited a number of major rice and agricultural product distribution facilities, storages and processing factories in Guangdong.

According to statistics from the Viet Nam General Department of Customs, last year, trade between Viet Nam and China reached US$58.7 billion, up 17.05 per cent over the previous year. As of May this year, the figure was $26 billion, a rise of 14.7 per cent over that of 2014.

At the same time, Guangzhou Customs' statistics show that in the first four months of this year, trade between Viet Nam and Guangdong hit $4.44 billion, an increase of 10.6 per cent year on year.

Vinmec becomes first JCI-accredited general hospital

Vinmec International Hospital in Hanoi last week became the first Vietnamese general hospital to receive the Joint Commission International Accreditation.

The Joint Commission International (JCI) Accreditation, which contains 285 standards and 1,160 measurable elements, is recognised in more than 90 countries in the world. Vinmec’s accreditation, which puts the hospital on the same rank as 767 other medical institutions in the world, is a recognition of the hospital’s effort in providing high quality healthcare to its patients. It also ensures patients checking into Vinmec receive the highest standard of treatment as well as respect and protection of rights.

Speaking at the accreditation ceremony, Dr. Prabhu Vinayagam, managing director of JCI’s Asia-Pacific Office, said he was impressed by Vinmec’s efforts “but the main challenge is to continuously improve.”

“To ensure the quality of the hospital and the safety of patients is the responsibility of each employee. I wish Vinmec success in its journey to improve this quality,” he said.

In 2013, the Ministry of Health issued a set of standards to manage the quality of hospitals that includes 83 criteria on the quality of healthcare services with the aim to encourage Vietnamese hospitals to raise their capacity as well as improve patient care. In 2014, Vinmec earned very high scores, an average of 4.81/5, in all criteria, and is one of the top performers.

“Receiving JCI’s accreditation is a landmark in the development of Vinmec and a reflection of the effort of the leaders, doctors and all the employees of the hospital,” said Deputy Minister of Health Nguyen Thi Xuyen.

“Vinmec Hanoi aims to become a leading healthcare destination in the region and the world, standing on the same rank as prestigious international hospitals. Vietnamese will have peace of mind when receiving treatment right in their home country instead of having to go to another country to do so,” said Dr. Nguyen Thanh Liem,  CEO of Vinmec.

Vinmec Hanoi, which opened in January 2012, was developed by Hanoi South Urban Development JSC (an affiliate of Vincom JSC – a member of Vietnam’s leading property developer Vingroup) and is the first hospital in the Vinmec healthcare system to start operation.

On June 19 this year, the second Vinmec hospital, Vinmec Phu Quoc, opened in Phu Quoc island. Over the next five years Vinmec plans to have nine more hospitals nationwide with one each in Ho Chi Minh City and Nha Trang slated to start operations later this year. Vinmec has also developed a medical university that would start admitting students in 2016.

JCI, the oldest and largest standards-setting and accrediting body in healthcare in the US, identifies, measures, and shares best practices in quality and patient safety with the world. JCI works with hospitals and other health care organisations, health systems, government ministries, public health agencies, academic institutions, and businesses to help them achieve peak performance in patient care and provides solutions to help health care organisations across all settings improve performance and outcomes.

Minister of Agriculture and Rural Development Cao Duc Phat yesterday led a delegation to inspect upgrading progress of the first irradiation establishment in the northern region in Hanoi.

The establishment located at the Hanoi Irradiation Center is being upgraded to meet demand of litchi and longan exporters who have to transport the fruits to two irradiation centers in the southern region for treatment.

After completion, the establishment will better treat litchi and longan to meet food hygiene and quality standards of import markets such as the U.S. and Australia.

The line will be able to irradiate 20-30 tons of litchi or longan a day.

Investment capital for the establishment totals VND30 billion (US$1.38 million), said Hanoi Irradiation Center director Dang Quang Thieu.

Besides the establishment, the center plans to build a cold storage system to preserve the fruits after irradiation preventing bacteria contamination but faces short of fund.

Minister Phat said that he would talk to Minister of Science and Technology and relevant ministers next week to give the center with financial assistance this year.

It is costly for export companies to transport farm produce from the northern region to two irradiation centers in the southern region.

Northern Europe needs quality products, firms told

Product quality is the key to the North European market, including Finland, trade experts told businesses at a workshop in HCM City late last week.

In addition, it is advisable for Vietnamese businesses to make full use of the European Union's Generalised System of Preferences as most domestic exporters lack a thorough understanding of the system.

The bilateral trade between Viet Nam and Northern Europe has yet to exceed the US$1 billion mark as there are shortcomings in trade promotional activities.

According to Nguyen Tuan Hai, Deputy head of the VCCI's Department of International Relations, Vietnamese exports have great potential in Northern European countries as they have huge demands for farm and aquatic produce.

However, Le Ky Anh, Economics and Trade Officer of the Delegation of the European Union to Viet Nam, said these countries, including Finland, are choosy markets that have many strict demands for quality, food safety, and hygiene, together with environmental protection and green growth standards, including those related to women or child workers.

He stressed that businesses should be more proactive in improving their product quality and market study.

Deputy head of the Economics and Trade Section at the Delegation of the European Union to Viet Nam Jana Herceg noted that the up-and-coming Free Trade Agreement (FTA) between the European Union and Viet Nam is expected to exert strong impacts not only on trade but also on foreign investment interests, technological transfer, economic reforms, and restructuring.

In order to optimise the benefits of the deal, Viet Nam should make good preparations and adopt specific strategies to integrate into the global economy, she recommended.

With commitments made on many key issues, the two sides recently concluded the 7th round of negotiation on the bilateral FTA.

Under the Viet Nam-European Union trade pact, 95 per cent of the tax line will be reduced and a free trade zone will be established.

The workshop was held by the Viet Nam Chamber of Commerce and Industry, the Finnish Embassy in Viet Nam, and the Finnish Ministry of Foreign Affairs' Finnpartnership programme, with a goal to promote the trade between Viet Nam and Northern Europe.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR