HCM City seeks solutions to develop MICE tourism

Experts from travel and hotel industry gathered to discuss the development of MICE (Meeting, Incentive, Conference and Event) tourism in Ho Chi Minh City on September 6.

According to statistics from McKinsey consulting group, 17 percent of visitors to HCM City came here for working purposes, higher than the region’s average figure of 14-15 percent.

In the first six months of 2017, the southern economic hub welcomed 2.7 million foreign visitors, up 14 percent compared to the same period last year.

Ben Wieglus from Informa Singapore, an exhibition and event organisation company, said MICE industry brings added value to socio-economic and cultural development, but can leave negative impacts on natural resources, which require further research into how to mitigate the impacts.

He suggested HCM City focus on highlighting its unique features on food, culture, and festivals, and advised local enterprises to enhance international partnerships. 

At the conference, participants said HCM City should improve traffic conditions to facilitate tourists’ travel around the city, particularly using buses or river buses.

Nguyen Quy Phuong, head of the Travel Department under the Vietnam National Administration of Tourism, the Vietnamese Government has been supporting tourism growth via intensive promotion.

HCM City has made MICE tourism one of the main tourist products and aims to become a new MICE hub in Southeast Asia, Phuong noted.

Shrimp exports to U.S. seen rebounding in late 2017

The Vietnam Association of Seafood Exporters and Producers (VASEP) expects the nation’s shrimp exports to the U.S. market could bounce back in the final four months of 2017.

The U.S. will have a lot of festive events in the coming months, which will drive up demand for seafood, including shrimp, according to VASEP.

VASEP data shows that in the first half of the year, the country’s shrimp shipments to the U.S. fell 5% year-on-year to US$306.5 million, triggered by the anti-dumping duties imposed on Vietnamese shrimp by the U.S. Department of Commerce (DOC) and fiercer competition from India.

However, VASEP said shrimp from all countries, including large exporters like India, Thailand, Indonesia and Ecuador, are also subject to anti-dumping tariffs in the U.S.

VASEP’s forecast is different from that of experts. At the Vietnam Fisheries International Exhibition 2017 (Vietfish 2017) last week, experts projected Vietnam would not be able to see a strong improvement in shrimp exports to the U.S.

In 2016, Vietnam exported nearly US$688 million worth of shrimp to America, becoming the fourth largest shrimp exporter of the U.S. All the three largest shrimp exporters to the U.S. are from Asia, namely India, Indonesia and Thailand.

VASEP has called for shrimp exporting companies to keep to the U.S. quality, manufacturing and processing standards if they are to step up shipments to this huge market.

OTP of Vietnam airlines up 90 percent

National flag carrier Vietnam Airlines has been honored for the second consecutive year as the four-star international airline under the criteria of Skytrax, airline reviews and rating organization of the United Kingdom, at the 2017 Ho Chi Minh City International Tourism Exhibition. 

Representatives of Vietnam Airlines said that the average rate of On-Time Performance index (OTP) of Vietnam Airlines’ flights is higher than other airlines acorss over the world, reaching 90.2 percent and  increasing seven points compared to the same period of last year; 2.2 points over its target in the first eight months of the year. 

Vietnamese Prime Minister Nguyen Xuan Phuc concluded that VNA always has the highest on-time performance index in the country. 

On the  service quality, the overall satisfaction index of customers through the

appreciation tables on its flights was 3.83 per 5 points, being higher than the same period and target.

The opening of the 24/7 Customer Care Center, putting into exploitation of 11 more flights Boeing 787-9 Dreamliner and eighth more flights A350-900 XWB have marked a new development in the service quality of Vietnam Airlines.

FPT opens its fourth office in U.S.

Information Technology Group FPT Corporation (FPT) has officially opened its fourth office in Denver, the largest city of Colorado State, aiming to boost the activities in the U.S.

Director in the U.S. Dang Tran Phuong said that the opening of new office facilitate is to access potential clients and provide aid to them in the new city.

Forty staffs are working in the new office. FPT is one of Vietnamese IT companies which have made its name for itself in the U.S.

Established in 2008, FPT officially announced the establishment of its business offices in Texas, Denver, Los Angeles and Renton employing 150 staffs from 15 nations.

It provides IT services to 20 customers which are leading corporation in the US in the field of making plane, elevator control system, satellite, and banking services.

Lately, FPT has signed an agreement with UPS - the world's largest package delivery company and a leading global provider of specialized transportation and logistics services which earned turnover of $61 billion in 2016.

In 2016, FPT’s turnover reached VND1.003 billion and it is expected to gain VND1,300 billion in 2017 ($57.2 million).

Vinamilk share's starting price set at VND154,000

With the starting price of VND154,000 per share, State Capital and Investment Corporation (SCIC) will get VND7.4 trillion (US$326 million) from 3.33 percent state capital withdrawal, expected in October, from Vietnam Dairy Products Joint Stock Company (Vinamilk).

The starting price was set at VND144,000 per share in the company’s 9 percent share sale last year.

Since August this year, Vinamilk stake price has swung from VND147,500-154,000. The highest price of VND154,000 was on August 3 and 4. Closing the session on September 7, it was VND149,500 per share.

Replying to the press previously, SCIC chairman Nguyen Duc Chi said that 48,333,000 shares of Vinamilk, equivalent to 3.33 percent chartered capital, were expected to be offered for sale in October.

Share buyers are domestic and foreign investors meeting requirements as per regulations.

After the October share sale, state capital ratio at Vinamilk will reduce to 36 percent.

It is expected that Saigon Alcohol Beer and Beverages Corporation (Sabeco) will sell state capital, about 53.9 percent chartered capital, with a starting price and share buyers similar to Vinamilk's.

IDICO IPO set for October 5

Vietnam’s leading developer of industrial zones and urban areas, Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO) plans to conduct Initial Public Offering (IPO) on October 5, according to Ho Chi Minh Stock Exchange.

With a chartered capital of VND3 trillion ($132 million) or 300 million shares, IDICO will hold an auction of 55.3 million shares with a starting price of VND18,000 ($0.8) per share.

Investors who are economic organizations, social organizations and individuals both local and foreign and eligible as required by law will be allowed to participate in the auction.

IPO of the IDICO is expected to attract much attention of investors because the company holds  a number of subsidiaries specializing in infrastructure investment such as industrial parks, electricity, transportation, construction, and urban area.

According to the approved equitization plan, the State will only own 108 million shares, equivalent to 36 per cent of the charter capital. In addition to the public offering, IDICO intends to offer strategic investors 135 million shares, equivalent to 45 per cent of charter capital.

The State is expected to withdraw all capital at IDICO on December 31, 2018. Therefore, investors who become strategic investors of the IDICO’s upcoming IPO will be more likely to take control of IDICO after the State’s divestment.

IDICO's Equitization Steering Committee recently required that IDICO's strategic shareholder to have a total asset of at least VND2.5 trillion ($110 million) and equity of VND1.5 trillion ($66 million) at the end of the financial year.  

Minimum profit is equal to 5 per cent of turnover in the last 3 years prior to the time of registration as a strategic investor of IDICO. The financial situation at the time of application has no overdue debt and accumulated losses, no bad debt and do not break the law.

Investors must immediately deposit 20% of the value of shares when registered to buy at the reserve price. In addition, IDICO's subsidiaries, affiliates and companies will not be allowed to subscriber to become strategic investors.  

IDICO is managing and operating 17 industrial parks in Vietnam with total area of 7,000 ha and total investment of VND10 trillion ($440 million).  

In the first half of 2017, IDICO recorded VND2.75 trillion ($121 million) in revenue and VND214 billion ($9.4 million) in pre-tax profit. The six-month pre-tax profit is a yearly increase of 22 per cent and fulfills 56 per cent of the company’s year plan. 

Seven-Eleven Japan to employ Vietnamese university students

Seven-Eleven Japan has partnered with six universities in Vietnam to employ Vietnamese university students as interns at convenience stores in Japan starting in mid-2018, according to Seven & i Holdings.

Seven-Eleven Japan plans to take two or three students from each institution initially, for a total of up to 20 interns. Mostly third-year students, who can already speak Japanese to some extent, will be selected and will work 40 hours a week in a paid internship in Tokyo.

It will provide training to the interns in cooperation with O-hara Gakuen, a Tokyo-based educator that offers bookkeeping courses in Japanese in Vietnam.

Over the course of their one year in the program, the interns will learn about store management, merchandising, and ordering stock, among other things. They also will have an opportunity to tour facilities that make the prepared meals sold in the stores.

7‑Eleven, Inc. (SEI), the world’s largest convenience retailer with 56,400 stores worldwide, signed a master franchise agreement in 2015 with Seven System Vietnam Co. Ltd. to develop and operate 7‑Eleven stores in Vietnam.

Seven System Vietnam opened the first 7-Eleven store in the country last June. Its entry into the country aims to enhance the convenience store shopping experience for Vietnamese customers and contribute to modernizing small retailers in the world’s 13th most-populous country.

7-Eleven’s mission is to give customers what they want, when, where, and how they want it around the world. SSV’s launch in Vietnam continues that mission and will deliver on “Everyday Quality and Convenience” by letting Vietnam citizens experience fresh convenience while providing the highest standards of services.

7‑Eleven and its parent company, Seven-Eleven Japan, will provide initial support for its newest master franchisee by assisting Seven System Vietnam in implementing 7‑Eleven’s successful strategies of market concentration, team merchandising, and item-by-item management.

Quang Ninh to get new port, industrial complex

Tien Phong Industrial Zone JSC and Russia’s Seaport of Azov on September 8 agreed to transform 100 hectares in Quang Ninh Province into a hub for industrial manufacturing and port operations.

The memorandum of understanding (MoU), signed by Tien Phong Industrial Zone JSC, in which Deep C consortium (Rent A Port) is a majority shareholder, and the Russian giant in port development and operations, agrees to start work on the Viet Nam-Russia Industrial Complex soon, provided the Vietnamese government offers its support in speeding up the process.

The MoU was signed in HCM City on the sideline of the 20th Session of the Viet Nam-Russia Intergovernmental Commission on Trading-Commerce and Science-Technology Co-operation, which saw the participation of around 150 Vietnamese and Russian businesses.

The 100-hectare plot, earmarked for the complex, is located in the northern province’s South Tien Phong area, along Chanh River.

The two partners started investing in Quang Ninh in 2016 and own a 50-50 share in one of the major liquid jetties in north Viet Nam. The investors now intend to equip the industrial complex with a second liquid jetty and a general cargo port. They hope to work together with local Quang Ninh authorities to connect the new industrial zone with a deep seaport.

The signing marked a milestone in co-operation ties between the two parties.

“This will be a great opportunity to show the Seaport of Azov’s commitment to investing in Viet Nam. The ultimate aim of this strategic cooperation framework is to draw Russian companies to invest and expand business in Viet Nam in general, and in northern regions such as Quang Ninh in particular,” said Andrian Sinebok, a chairman of board, Seaport of Azov, speaking at the signing ceremony.

The strategic location of the complex, between deep waters and shallow river, will allow all tenants of the complex to distribute their products via inland waterway, which will reduce the number of trucks on the roads.

Rent A Port and Seaport of Azov’s MoU comes at a time when Russian investment in Viet Nam has slowed down. Statistics show that by the end of August, Russian businesses had registered to invest around US$1.026 billion in 114 valid projects in Viet Nam.

The MoU is also a positive response to the partnership agreement signed between Viet Nam’s President Tran Dai Quang and Russia’s President Vladimir Putin in the end of June, under which they have agreed to invest around $10 billion in both countries.

The Viet Nam-Russia Industrial Complex signals a new wave of Russian investments into Viet Nam.

The project would be logical continuation between Deep C consortium and Seaport of Azov in the Euro Jetty JSC, whose first investment was the successful liquid jetty in Dinh Vu Industrial Zone, which has 20 members, including America’s Chevron and several Japanese clients.

The inking of the MOU represents the strong relationship of more than 20 years between Rent A Port and Seaport of Azov.

Vietnam attends Top Resa tourism fair in France

Vietnam will attend the International French Travel Market Top Resa on September 26-29, reports Vietnam Investment Review.

Vietnam National Administration of Tourism (VNAT) will introduce international friends to the country’s land, hospitable people and tourism destinations.

Vietnam will also present the National Tourism Year 2018 – Ha Long, Quang Ninh, and special tourism products to promote Vietnam image as an attractive destination in ASEAN.

Within the framework of the event, VNAT will coordinate with the Vietnam Embassy, the Vietnam Culture Centre and Vietnam Airlines to organize a fair to advertise Hanoi tourism to French travel agents and press and communications agencies. It will discuss with the French Travel Agent Association measures to boost tourism cooperation between the two countries.

The fair provides a good chance for Vietnamese exhibitors to meet and seek opportunities to develop tourism, said a representative from VNAT.

ASEAN’s largest all-in-one agribusiness exhibition opens     

The third edition of SIMA ASEAN Thailand, the most comprehensive international trade exhibition for agribusiness in ASEAN, opened its doors on Thursday in Bangkok.

This year, the exhibition focuses on the latest innovations in agricultural machinery, with the aim of improving Thai agro-industry to reach the Agriculture 4.0 era. Agriculture 4.0 refers to farming practices that make use of digital technology to increase sustainability and productivity.

In addition to machinery displays, the exhibition offers seminars to support the education of farmers. The event is expected to attract 15 per cent more visitors than the previous year and to generate more than one billion baht.

The event has drawn more than 300 exhibitors from many countries, including China, Japan, Singapore, South Korea, Turkey and Viet Nam.

SIMA’s exhibitors are showcasing a comprehensive range of products and services, such as tractors; spare parts and accessories; embedded electronics; tilling, sowing, planting, harvesting and post-harvest equipment; equipment for tropical and special crops; livestock handling, transportation, storage and breeding equipment; renewable energy; consultancy; management and software.

Speaking at the opening ceremony, Dr Suwit Chaikiattiyos, director general of the Department of Agriculture under the Ministry of Agriculture and Co-operatives, said, “We hope that this event will be a platform to exchange ideas and the latest technology, leading to rapid industrial development, an increase of leverage in negotiations for farmers, and a higher capability of Thai agribusiness in the highly competitive international market.”

Jean-Hugues, Key Account Manager at SIMA – SITEVI, told Viet Nam News that they are working to attract international companies to bring new materials and technologies that could be applied in the Southeast Asian region and Thailand.

“SIMA can help farmers to develop their production and to increase efficiency of production by proposing new technology that will help them to have more sustainable agriculture,” he said. “It’s important that we introduce materials, machinery and equipment adapted to size of the crop, because the size of the crop in the Southeast Asian region is of course smaller than ones in Western Europe.”

The Vietnamese delegation this year includes 30 business members of the French Chamber of Commerce and Industry in Viet Nam.

Alexander Nguyen, CEO of Alex’s Organic Nutrition Food for Animals, believes this event will be a good opportunity to introduce Vietnamese organic food for animals to international customers. He also plans to learn about the latest market trends and current demands of specific markets while seeking new customers.

“We want to advertise Vietnamese agriculture to the world, declaring that the country has specific strengths and diversified products,” he said.

Bui Phong Luu, director of Bui Van Ngo Industrial and Agricultural Machinery Company Ltd, which has exported their agricultural machinery products to 22 countries, such as Thailand, Cambodia, Philippines, Australia, Malaysia, and countries in Africa and South America, also told Viet Nam News that they have previously exported their products to Thailand until 1997. However, the exports were halted in 2007.

“We want to seek new customers and connect to the Thai market again as well as buying new technology for our expansion,” he said.

The expo, which continues until September 9th, is expected to attract 20,000 trade visitors and create business opportunities for all participants.

Experts will be present to share their knowledge on the capabilities of the machinery. There will also be a drone pavilion and workshops that are geared toward Agriculture 4.0. The Thai Society of Agricultural Engineering Conference will also be held during the show.

The event will also host several seminars, where experts in agriculture will be presenting over 20 topics that can develop the Thai agriculture industry and drive Thailand’s economic growth. 

VN, South Korea trade up 20%     

The Viet Nam-South Korea Free Trade Agreement, which came into effect in December 2015, has given a big boost to economic ties between the two countries, a Korean diplomat told a seminar in HCM City on Thursday.

Speaking at a seminar on how to capitalise on the deal, Moon Byung Chul, commercial counsellor at the Republic of Korea consulate general, said bilateral trade was worth US$45.1 billion last year, a year-on-year increase of more than 20 per cent.

It grew by 30 per cent in the first seven months of this year to $35.5 billion, he said.

Investment by Korean firms in Viet Nam has also gone up significantly, rising to $54 billion as of last June, making it the largest foreign investor in Viet Nam, he added.

Yoon Joo Young, director of the Korea Trade-Investment Promotion Agency (KOTRA) in HCM City, said Viet Nam is Korea’s third largest trade partner and the largest investment destination in the ASEAN bloc, with about 4,500 Korean firms operating in the country.

Park Hyung Min from the Korean Ministry of Trade, Industry and Energy said while his country’s trade with other partners has reduced, it has remained robust with Viet Nam.

He believed that the FTA would further boost bilateral investment and trade ties.

But according to delegates, Korean firms have capitalised on the lower tariff duties under the FTA to boost exports to Viet Nam while Vietnamese firms have not.

As a result, Viet Nam’s trade deficit with Korea has widened sharply since the FTA came into effect, delegates said.

According to Korea Customs Service, exports to Viet Nam in January-July this year were worth $26.95 billion, up 50 per cent from the same period last year, which is three times the overall export increase rate for Korea of 16.3 per cent.

Nguyen Quang Phuc from the Ministry of Industry and Trade’s Import-Export Department said Korean firms have taken advantage of the FTA while Vietnamese enterprises are passive in getting information about it, even unmindful of it, thus missing out on its much-touted benefits.

But when his ministry organises seminars on the FTA’s provisions, not many businesses take part or send the right employees, he said.

Dang Thai Thien, deputy head of supervision and management at HCM City customs, said compared to the South Korea-ASEAN FTA, the Viet Nam-South Korea FTA offers more benefits to Vietnamese firms exporting to Korea, more products enjoy tariff incentives and rules of origin are easier.

Both Phuc and Thien urged Vietnamese firms to be more active in getting information about the latter to boost export to Korea.

Yoon said Vietnamese firms should contact the Viet Nam-Korea Free Trade Agreement Support Centre, which was established last year, for consultancy and accurate and detailed information on the FTA as well as help to resolve difficulties related to non-tariff barriers and obtaining certificates of origin. 

Bình Định boat hauls in 1.1 tonnes of tuna in off-season

A fishing boat caught more than 1.1 tonnes of tuna off Quy Nhơn City in the central province of Bình Định on September 4.

The off-season catch was sold for VNĐ110,000 (US$4.84) per kilogramme.

Trần Quang Bảo, captain of the boat, said tuna prices had increased by around VNĐ12,000 (53 cents) per kilogramme since last month.

"The price is quite high and so fishing boats and their crews have high incomes. We are quickly stocking up on food and water to return to the sea."

According to the province Department of Agriculture and Rural Development, so far this year the fishermen have caught 8,511 tonnes of tuna, up 18.6 per cent compared to the same period last year.

On average, a boat earns VNĐ70-80 million ($3,077-3,517) per trip.

Nguyễn Viết Nghĩa, deputy director of the Institute for Seafood Research, said 485,600-502,900 tonnes of tuna are caught off central provinces every year.

The boats are mainly from Phú Yên, Khánh Hòa and Bình Định, and their catches comprise yellow fin tuna, big eye tuna and skipjack tuna, he said.

Bình Định was the first province to use new technology and skills to supply fish to Japan, especially tuna.

By 2014 the province’s fishermen had modern equipment and technologies worth $1 million to catch, preserve and transport tuna.

In September that year the first tuna was exported to Japan and sold at three times the price the fish fetches in the Vietnamese market.

The province has around 3,200 fishing boats.

Gov’t incubation role vital

The Government has a major role in incubating enterprises, participants at a seminar in HCM City were told on Thursday.

“It is imperative that the Government take part in the initial stage of incubation, organising and calling for donations,” Dr Nguyễn Hải Anh, director of the municipal High-tech Agriculture Enterprise Incubation Centre, seminar organiser, said.

“The initial funding for these incubations could come from the State budget, but in the long run funds should be raised from localities, enterprises, foreign investors, ODA or FDI.”

According to Assoc Prof Dr Mai Thanh Phong of the National University-HCM City’s Polytechnic University, there are many different models for incubation with different targets, standards and operations.

“The public-private partnership model has its advantages. The model is still new in Việt Nam but has become popular all around the world with its proven efficiency.

“A major task of the Government is to develop infrastructure and the legal framework, provide initial financial support and support venture capital funds.”

Enterprise incubation is still new in Việt Nam but becoming increasingly common around the nation, and HCM City is considered the biggest hub for incubation with 10 Government incubators and 14 private ones.

Phan Quý Trúc from the city Department of Science and Technology reported that private incubators have achieved good results with 60 per cent of enterprises becoming operational, higher than the rate for their Government counterparts.

She explained that the Government’s incubators focus on information technology, agriculture, high technology, bio-technology, which involve high costs for equipment, machinery, materials and require long periods of training while private incubators target e-commerce and telecom, which involve lower costs, and less time and returns are very quick.

“However, private incubators find it difficult to attract foreign investments due to the legal framework.”

The Government incubators have not attracted investors due to red tape and their success ratio is very low at around 15 per cent.

Experts suggested solutions for boosting start-ups like promoting incubation at universities since they have research capabilities, diversifying the source of funds for incubation and supporting start-up products.

Vietnam hosts over 39,500 Italian tourists in 8 months

Vietnam welcomed more than 39,500 Italian tourists in the first eight months of 2017, with more Italian tourists expected, according to the Vietnam National Administration of Tourism.

Speaking at a workshop held in Ho Chi Minh City on September 7 as part of the International Travel Expo Ho Chi Minh City 2017, Minister of Culture, Sports and Tourism Nguyen Ngoc Thien said the number of Italian visitors to Vietnam has grown annually by 13-18 percent in recent years.

The event allows Vietnamese and Italian travel companies to explore tourism cooperation and popularise their products, he said.

Italian Undersecretary of State for Cultural Heritage and Tourism Dorina Bianchi said though the number of Italian visitors to Vietnam is not big, her country’s people are interested in new emerging destinations, including Vietnam.

Vietnam’s nature advantages and delicious food will attract tourists, she said, adding that enhancing bilateral tourism cooperation, including the launch of a direct air route between Vietnam and Italy, will help optimise potential in the field.

Additionally, if visa exemptions for Italian holidaymakers are extended to more than 15 days, it could help promote tourism growth, she noted.

Vietnam’s resort real estate introduced to Japanese investors

Vietnam’s resort real estate market has strong potential to develop, Japanese investors remarked at an event held by the property developer FLC Group in Tokyo on September 7.

Director General of the FLC Group Le Thanh Vinh said with more than 3,200 km of coastline, world-famous bays and unique historical and cultural values, Vietnam has become one of the most popular destinations in Southeast Asia.

As the second biggest foreign investor and the fourth largest trade partner of Vietnam, Japan is well positioned to invest in the resort real estate market in Vietnam, he said.

He hoped this event will attract more Japanese investors to Vietnam’s real estate, finance, construction, technology, agriculture and healthcare markets.

Vietnamese Ambassador to Japan Nguyen Quoc Cuong called on Japanese businesses to link up with Vietnamese partners through their investment projects in the Southeast Asian country.

Former Japanese Ambassador to Vietnam Norio Hattori said Vietnam has a stable political system and advantages in human resources along with a young population and close ties with Japan.

Among ASEAN member nations, Vietnam is Japan’s most efficient business and investment partner, he affirmed.-

Stradivarius opens first store in Vietnam

Stradivarius last Friday opened its first store on the second floor of Vincom Center on Dong Khoi Street in District 1, HCMC.

Stradivarius is a trademark of the Inditex Group marked by its passion for fashion, style and creativity. Its shops, which breathe femininity, present the latest trends. These are magic places giving one a unique shopping experience.

Present in over 66 countries, the brand already has more than 1,000 stores around the world.

Trade Minister urges subordinates to speed up admin reform

Minister of Industry and Trade Tran Tuan Anh has called on all the departments and agencies under the ministry to review business conditions and administrative procedures, and remove those unnecessary to prop up the business community, according to the Government news website.

At a meeting on Tuesday, the ministry’s departments and agencies looked into surveys of business conditions conducted by the Vietnam Chamber of Commerce and Industry (VCCI) and the Central Institute for Economic Management (CIEM).

The Ministry of Industry and Trade has 1,216 business conditions which are hampering investment and production activities, according to VCCI and CIEM.

Therefore, the two organizations proposed the ministry further reform administrative procedures and abolish unnecessary business conditions, especially those applying to gas, rice and alcohol, and logistics services.

Minister Anh stressed the survey findings of VCCI and CIEM came from facts, so he told his subordinates to not discuss whether they are right or wrong but spend more time on administrative reform.

In particular, he ordered them to evaluate the efficiency of their work and review their procedures and business conditions again. Those redundant procedures and business conditions must go, he said, adding administrative reform is intended to improve the business environment.

“The reform must be conducted in a thorough and objective manner… That local companies and residents still voice their concerns over administrative procedures means we have yet to get our job done,” he stressed.

The departments and agencies under the ministry were told to send their reports on administrative reform to Minister Anh prior to September 14.

They will then work with a working group of the ministry to decide which procedures and conditions to be eliminated. Notably, Minister Anh will be responsible for supervising the reform process.

Especially, conditions for foreign investors to enter the Vietnamese market will be modified to make them compatible with international business practices.

Dai-ichi Life, Sacombank clinch 20-year bancassurance partnership

Dai-ichi Life Vietnam and Sacombank on September 6 signed a 20-year exclusive bancassurance partnership agreement, the longest of its kind in the domestic insurance market.

Under the deal, Dai-ichi Life Vietnam is the exclusive provider of premier life insurance products and riders through the bank’s nationwide network. They will cooperate on specialized training aimed at advancing skills on life products, consulting and customer care for Sacombank employees.

Dai-ichi Life Vietnam will join forces with Sacombank to hold seminars to introduce the company’s financial protection solutions to customers. With 564 transaction points in 48 provinces and cities, and a multi-function retail system, the bank will give a boost to the distribution of Dai-ichi Life Vietnam’s financial protection products.

Dai-ichi Life Vietnam and Sacombank hoped the partnership would help leverage their respective strengths.

Takashi Fujii, chairman of Dai-ichi Life International Asia Pacific and chairman of Dai-ichi Life Vietnam, said the exclusive partnership with Sacombank, one of the major financial institutions in the country, will help the company strengthen its solid foundation to provide life insurance products and services matching the long-term financial security of customers.

“The signing with Sacombank once again imprints our foothold in the market, demonstrating our determination in expanding the customer base,” Fujii said.

Duong Cong Minh, chairman of Sacombank, said the partnership will benefit the bank, Dai-ichi Life Vietnam and customers. “It is a win-win partnership in which Sacombank, Dai-ichi Life Vietnam and its customers will benefit altogether.”

In the first eight months of this year, Dai-ichi Life Vietnam posted first year premiums of more than VND1.87 trillion and total premiums of over VND4.22 trillion, surging 57% and 49% year-on-year respectively.

Dai-ichi Life Vietnam was established in January 2007. Vietnam was the first foreign market where Dai-ichi Life Group established a commercial presence through a 100%-owned subsidiary.

Dai-ichi Life Vietnam said it has been among the top four life insurance companies in Vietnam, serving more than 1.7 million Vietnamese customers through over 1,000 staff, 66,000 financial consultants, and 239 offices and general agencies nationwide.

Dai-ichi Life Vietnam said that following the chartered capital increase to US$100 million in May last year, it got Ministry of Finance approval in January 2017 for adjusting up its capital up to US$117 million.

Blame put on shipbuilders of low-quality vessels

The shipbuilders who built substandard steel fishing boats for fishermen in the central province of Binh Dinh are squarely to blame, according to the Vietnam Directorate of Fisheries.

Nguyen Ngoc Oai, deputy head of the directorate, said at a press conference on September 6 that 767 fishing vessels, including 301 steel ones, had been built since the Government’s Decree 67/2014/ND-CP came out in 2014.

The decree encourages banks to provide low-interest loans for fishermen to build steel vessels to increase their fishing capacity and guarantee safety during their long offshore fishing trips.

Of the 301 steel vessels, he added, 18 boats built by Nam Trieu and Dai Nguyen Duong companies are not operational due to technical problems.

Nam Trieu turned out 20 vessels, but 13 of them are not workable, while Dai Nguyen Duong built five vessels and all of them have sustained technical problems.

Nam Trieu has reached agreement with the affected fishermen to repair the affected boats and six will be re-launched on September 15, and the remainder will be put back into service at the end of this month.

For Dai Nguyen Duong’s five steel vessels whose hulls have rusted, the company has secured repair deals with fishermen.

However, competent agencies have found manganese content in the steel used to build the five vessels is lower than the prescribed level. The Ministry of Agriculture and Rural Development and the provincial government of Binh Dinh have agreed to invite experts for a reassessment of these boats.

The deputy head said the Binh Dinh Department of Agriculture and Rural Development and ship owners would meet today to thrash out repair plans.

He cited Deputy Prime Minister Trinh Dinh Dung as saying at a meeting that shipbuilders are largely to blame.

However, he added, the Directorate of Fisheries will also point the finger at boat registration agencies.

Ha Cong Tuan, Deputy Minister of Agriculture and Rural Development, said at the conference that ship registration agencies should be held accountable as well.

PM to chair Mekong Delta development conference

Prime Minister Nguyen Xuan Phuc will preside over a conference in Can Tho City late this month, where appropriate sustainable development models would be sought for the Mekong Delta in response to climate change.

He held a working session on Tuesday with some ministries and agencies to prepare for the conference on September 26 and 27, the Government news website reports.

The Mekong Delta, the country’s key rice growing area, now needs strategic solutions to ensure sustainable development until 2100 as climate change has wreaked havoc on the delta in recent years.

Therefore, the meeting will look into challenges, opportunities and measures to transform development models for the delta; planning, infrastructure development, and regional coordination mechanism; sustainable livelihood transformation, irrigation infrastructure, and natural disaster control.

Around 500 delegates who are experts, representatives of development organizations, partners, and potential investors at home and abroad will attend the event.

Speaking at the working session on Tuesday, Phuc underscored the importance of the upcoming conference, saying thorough preparations must be made.

Relevant ministries and agencies should find finances and mechanisms to bolster the growth of the delta, he noted. He assigned the Ministry of Natural Resources and Environment, the Government Office, Can Tho City, and relevant ministries to present specific projects and plans for the conference.

A Government resolution on transformation of sustainable development models for the Mekong Delta in response to climate change should be drafted and submitted to the Government at its regular meeting late this month.

The Mekong Delta is home to 18 million people and plays an important role in the national economy as it accounts for 18% of gross domestic product (GDP), 90% of rice exports, 60% of seafood exports and 70% of fruit exports in the country, according to reports delivered at the working session.

However, the region is reeling from adverse effects of climate change such as drought, salinity intrusion and landslides.

Vietnam resumes poultry imports from Tennessee

The Ministry of Agriculture and Rural Development has allowed local companies to resume imports of poultry and poultry products from the U.S. state of Tennessee where bird flu is now under control.

On March 10, the ministry issued a temporary ban on imports of poultry and its byproducts that have not undergone heat treatment from U.S. states Wisconsin and Tennessee, according to the ministry’s Decision 686/QD-BNN-TY. Then Wisconsin and Tennessee were battling a strain of low pathogenic H5N2 and the highly pathogenic H7 avian influenza virus in commercial poultry.

Tennessee authorities have put the outbreak under control.

By September 5, Vietnam had had one area affected by A/H5N1 avian influenza for less than 21 days in the Mekong Delta province of Bac Lieu, according to the Department of Animal Health under the ministry.

The department said some strains of the avian influenza virus like A/H7N9, A/H5N2 and A/H5N8 which have yet to exist in Vietnam are likely to emerge due to illegal imports of poultry, especially through northern provinces.