The central city will prioritise boosting tourism, information technology (IT), sea port and logistics in 2018 to build a foundation for the next period of development in a sustainable way.

The city’s Party Secretary, Truong Quang Nghia, spoke at the Spring Dialogue with the participation of 500 representatives of businesses and local administration agencies on Thursday, stressing that the year 2018 will serve as a benchmark for the next development stage after 20 years of rapid growth between 1997-17.

He said the dialogue was an open discussion for local administration and businesses to share ideas ahead of the 2030-50 period.

“The city will take more positive measures supporting investors and businesses, creating more rooms for rapid and sustainable development with ‘green growth’ target,” he said.

Nghia added the city plans to develop the Lien Chieu Port as the first urban port and a key cargo port in Viet Nam, easing the overloaded Tien Sa Port.

Chairman of the city’s tourism association Huynh Tan Vinh said hospitality has emerged a key industry for the city’s budget in the last decade, earning VND19.5 trillion (US$862 million) – 23.72 per cent of Gross Regional Domestic Product (GRDP) – in 2017.

The ‘green’ industry also created 140,000 jobs, accounting for 25 per cent of the city’s labour force, and 28,000 rooms of hotel and resorts are available for hosting 10 million tourists in 2020.

Vinh, however, warned that the coastal city has faced the consequences of ‘too hot’ growth including a lack of fresh water in Son Tra peninsula and beach pollution due to untreated household waste water, while too many concrete sky-buildings and hotel projects have invaded natural forests and coastlines.

He also said the city should reconsider business supportive policies in order to strike a balance between big enterprises and small and medium-sized businesses.

He said nightlight entertainment and shopping areas should be rapidly developed in the coming years.

According to the association, Da Nang hosted 6.6 million tourists, of which 2.3 million were foreigners, last year.

Korean and Chinese tourists accounted for 60 per cent of total foreign tourists. Tourism promotions should be done in Russia, India, Australia, the US, Europe and Japan.

Peter Ryder, CEO of the Indochina Capital property group, said Da Nang should continue its tourism development in a sustainable way and reduce the impact of construction on coastal buildings and projects.

He said improving the transparency should be considered in the development plan to attract foreign investment.

Satoru Takizawa, general director of Daiwa Viet Nam Company, said people and service are two strong points of Da Nang City in attracting investment.

He said too-rapid industrialisation in the city recently set challenges for foreign investors when they struggled to recruit a skilled labour force.

Takizawa, who is also chairman of the Japanese Business Association in Da Nang, said some investors plan to move their plants to other localities due to a lack of high-quality manpower.

“The city should improve high-quality labour training systems to supply enough quality manpower for investors, while encouragement policies should be offered for boosting vocational education centres,” he said.

Director of Da Nang Port Joint Stock Company Nguyen Huu Sia said Lien Chieu Port should be soon developed as a key port and logistic centre in central Viet Nam.

In boosting Da Nang as a driving force city for the central Viet Nam, the city has offered preferential policies to seek investment in the Da Nang Hi-Tech Park on a 1,100ha area in Hoa Vang District, 20km west of the city.

The park, which is envisioned as a hub for green and hi-tech investors and one of three major national multi-functional hi-tech parks in the country after HCM City and Ha Noi, has attracted 10 projects worth $249 million since 2013.

According to recent reports, Da Nang has thus far attracted a total of 546 foreign direct investment (FDI) projects worth more than $3 billion.

VinFast announces designs for electric and internal combustion engine vehicles     

VinFast Manufacturing and Trading Company Limited has announced 36 global-standard designs, including 17 for its electric vehicles and 19 for internal combustion engine vehicles on Thursday.

This is the first time that a Vietnamese company will produce electric vehicles, marking a breakthrough for the development and integration of the Vietnamese automobile industry.

VinFast’s electric and mini vehicles will be launched late next year, faster than expected by nearly one year.

This event affirms VinFast’s goal to become Southeast Asia’s leading car manufacturer, with comprehensive products in the line of internal combustion engine vehicles (sedan, SUV and hatchback) and electric vehicles.

VinFast decided to invest heavily in electric vehicles to create a breakthrough within Việt Nam and the world market.

The production line will apply the world’s leading technology to produce eco-friendly electric vehicles in line with the latest developments and trends of the world automotive industry.

In addition, mini cars are being developed with the goal of bringing the opportunity of owning international quality cars at affordable prices to local customers.

"Electric cars are the car of the future. With a pioneering mission and a desire to make a breakthrough in the car market, we decided to produce electric cars at this time. In addition, VinFast will also produce mini-size cars alongside two models of sedans and SUVs to serve current domestic demand," said Vingroup deputy chairman Nguyen Viet Quang.

In order to realise the goal of manufacturing cars with Vietnamese identity and international standard, VinFast continues to call for community participation in contributing ideas for vehicle designs.

During the period from March 14 to March 18, consumers can vote for their two favorite designs for Vinfast electric and mini-size vehicles at www.binhchonmauxe.vinfast.vn.

Those taking part in the vote can have the chance to win attractive awards with the total value up to VND800 million (US$35,550). The first prize is worth up to VND200 million.

In addition, VINFAST will also host many interesting minigames on its fanpage so that customers can directly share and comment on the models. 

Transport – a highlight of GMS Economic Cooperation Programme

With financial aid from the Asian Development Bank (ADB) and other sponsors, the Greater Mekong Subregion (GMS) Economic Cooperation Programme has supported the region to carry out a number of priority projects with notable outcomes recorded in the field of transport.

In 2009, the Hanoi – Lao Cai expressway with a total length of 264 km and investment of 1.2 billion USD sourced from the ADB was considered a strategic part of the Kunming – Lao Cai – Hanoi – Hai Phong road corridor and the cooperation programme between the six GMS countries namely Vietnam, Laos, Cambodia, Thailand, Myanmar and China. The expressway is not only important to localities where it runs through but also the whole north-western region.

Meanwhile, the Noi Bai – Lao Cai expressway, the longest of its kind in Vietnam, was put into operation in September 2014 as part of the North – South economic corridor, helping reduce traveling time from seven hours to three hours and facilitating goods transport.

The expressway has contributed to making significant economic changes in Vietnam’s northern localities and China’s southern region through increasing trade and investment exchanges and tourism.

The ADB also supported the establishment of the southern economic corridor linking cities and towns in the southern GMS region and the East – West economic corridor spanning 1,320 km from Da Nang port in the eastern coast of Vietnam to the coast of the Indian Ocean in Myanmar.

GMS was established in 1992 as an initiative of the ADB. The GMS Cooperation Programme is the most complete cooperation programme that involves Vietnam, Laos, Cambodia, Thailand, Myanmar, and China’s Yunnan and Guangxi provinces. The programme prioritizes infrastructure development, energy, telecommunication, tourism, trade-investment, human resources, and environment.

To realise the common goal of turning the GMS into a prosperous, integrated and harmonious region, leaders of the GMS countries approved a 10-year strategic framework at the fourth GMS Summit in the Philippines in 2011, making it a foundation for GMS cooperation orientations from 2012 to 2022 to boost regional and extra-regional integration and cooperation.

Vietnam is scheduled to host the sixth GMS Summit and the 10th Summit of Cambodia – Laos – Vietnam (CLV) Development Triangle in Hanoi from March 29-31 with a view to boosting regional economic links.

Quang Ninh marks customs clearance via floating bridge linking with China

The floating bridge linking Mong Cai city in Vietnam’s Quang Ninh province and Dongxing city of China’s Guangxi Zhuang Autonomous Region (Photo: VNA)

A ceremony was held on March 7 to mark the customs clearance of goods transported via a floating bridge linking Mong Cai city in Vietnam’s Quang Ninh province and Dongxing city of China’s Guangxi Zhuang Autonomous Region.

The floating bridge crossing the Ka Long River, the first of its kind connecting the two cities, was inaugurated on December 1, 2017. 

Invested with nearly 160 billion VND (over 7 million USD), the two-lane bridge is 114 metres long and 12 metres wide and has a load capacity of 60 tonnes. It is part of the infrastructure of Mong Cai and Dongxing border gates.

It is hoped to play an important role in facilitating goods export and import via these ports of entry and addressing the overload of goods transported via the Ka Long River.

The facility is also expected to improve the competitiveness of the two border gates compared to other pairs of border gates along the Vietnam-China border.

Quang Ninh is a coastal province in the northeast of Vietnam. It shares a 132.8km land border with Fangcheng district and Dongxing city of China’s Guangxi province.

Japanese bank signs cooperation agreement with Vinh Phuc province

Japan’s Mizuho Bank has signed a Memorandum of Understanding with the northern province of Vinh Phuc on cooperation in boosting Japanese investment in the locality.

Under the agreement, which was signed in Vinh Phuc on March 7, the provincial People’s Committee will create all favourable conditions for Mizuho business customers to make investment in the province.

Local authorities will enable the Japanese bank to join investment promotion events to seek partners and promote its products and services.

Meanwhile, Mizuho will send experts to Vinh Phuc to offer advice on financial and banking services to support investors if requested.

The bank will support the provincial People’s Committee in hosting activities to promote investment.

Speaking at the signing ceremony, Vice Chairman of the provincial People’s Committee Vu Viet Van said the province has seen strong socio-economic development in recent years thanks to significant contributions by foreign invested firms, including those from Japan.

As of February 2018, the province counted 278 foreign direct investment (FDI) projects worth over 4 billion USD from 15 countries and territories. Japan ranked second with 31 projects with registered capital of 816 million USD and led in business-production efficiency, he noted.

Major Japanese groups investing in Vinh Phuc such as Toyota Vietnam and Honda Vietnam have seen effective operations with the application of modern science technology to create highly competitive products.

Vinh Phuc and other Japanese localities held a lot of investment cooperation activities and cultural exchanges, Van said, adding that he hopes Mizuho Bank will host more promotion activities and support Japanese businesses in investing in the province.

Seiji Imai, a representative from the bank, said Mizuho wants to expand its operation and provide the best services to customers. 

In the coming time, the bank will introduce the investment environment in Vietnam and Vinh Phuc in particular to Japanese enterprises as well as provide financial assistance for firms to operate effectively in Vietnam, he added.

Vietnam boosts legal framework for commercial mediation

Vietnam has stepped up efforts to address any disputes via commercial mediation over the past years and pledged to promote a legal framework for this field, heard a workshop in Ho Chi Minh City on March 7.

The workshop on Vietnam’s existing legal framework for commercial mediation and lessons learnt from international best practices was jointly organised by the International Finance Cooperation (IFC) of the World Bank Group and the Vietnam International Arbitration Centre (VIAC).

According to Nina Mocheva, a senior financial expert from the World Bank Group’s Finance, Competitiveness & Innovation Global Practice, more Vietnamese partners, including organisations, individuals and State management agencies made commitments to promote the settlement of commercial disputes based on legal regulations.

In recent years, commercial medication has been gradually legalised in Vietnam, she said.

The Southeast Asian country has worked out measures to improve the legal institution and encourage involved parties to resolve disputes via commercial mediation to maintain their trade relations.

Vice Chairman of the VIAC Vu Xuan Phong said trade and investment activities have been developing in Vietnam. The number of commercial disputes has been on the rise. Therefore, it is necessary to have effective commercial mediation solutions based on legal regulations, he added.

On February 24, the Vietnamese Government issued Decree No.22/2017/ND-CP on commercial mediation, which dispute resolution through commercial mediation must ensure that parties voluntarily participate in the mediation process and on equal grounds regarding rights and obligations.

HCM City, French businesses cooperate to develop urban transport 

Vice Chairman of the People’s Committee of Ho Chi Minh City Tran Vinh Tuyen hosted a reception on March 7 for a French business delegation to discuss investment opportunities in urban transport in the city.

Emphasising the two sides’ cooperation potential, Tuyen said that France currently ranks 17th among the 92 nations and territories investing in the city, which does not match the Vietnam-France time-honoured political and cultural relations.

He expressed his hope that the delegation’s visit will open up cooperation prospects for the two sides, especially in urban transport development.

He committed to creating all favourable conditions for French investors.

On behalf of French enterprises, French Consul General to Ho Chi Minh City Vincent Floreani thanked the city for its assistance given to French businesses in implementing several sub-projects of the Metro Line 1 project as well as other projects on waterways and aviation in the city.

He affirmed that transport development is an important and typical cooperation aspect of the France-Vietnam strategic partnership.

The delegation, including leaders of 14 big French companies, showed their interest in the city’s orientation to develop the Metro system and other passenger transportation types.

They affirmed that they have enough technology, experience and economic potential in the urban transport development, hoping to continue cooperating with the city in Metro and urban railway projects.

Optimism surrounds Vietnam-China trade

2017 was breakthrough year for the relationship, Commercial Counselor of Vietnam in China, Dr. Dao Viet Anh, told a trade counselor conference held in Hanoi recently. Two-way trade revenue reached $121.3 billion last year, exceeding the target of $100 billion.

China has also now become Vietnam’s eighth-largest investor. “The highlight of economic and trade cooperation between the two countries last year was export growth being higher than import growth, which contributed to narrowing the trade gap to $20 billion,” Dr. Anh said.

He emphasized that many products from Vietnam, such as telephones, computers, cameras, fruit and vegetables, and seafood have become mainstream products, contributing substantially to export turnover with China and addressing the trade deficit and taking trade to new heights.

“This is also a convincing demonstration of the strength and effectiveness of a constructive government, close coordination between ministries, branches, and localities, and the efforts of associations, industries, and enterprises in the country,” he noted.

Other Vietnamese counselors also reported on the trade status between Vietnam and the country in which they work. Prime Minister Nguyen Xuan Phuc said he appreciated the contributions by industry and trade counselors to the development of the country, including record trade turnover in 2017 of $425 billion, with exports reaching $214 billion.

The Prime Minister also said that Vietnam’s network of trade offices overseas has made many positive contributions in highlighting the promotion of exports and in particular sending agricultural products such as shrimp, mangoes, and dragon fruit to Australia and chicken, dragon fruit, and other items to Japan.

The government has always listened to the opinions of commercial counsel offices through the Ministry of Industry and Trade (MoIT), the Ministry of Foreign Affairs, and other ministries.

He therefore asked MoIT to commend and encourage counsellors for their efforts over the last year, especially in export markets, and proposed that necessary measures are taken to dispatch commercial counselors to countries where they are currently not present.

Commercial Counsellor Offices should focus on solutions to take advantage of free trade agreement (FTA) preferences to send Vietnamese goods overseas and mobilize the host country's enterprises to cooperate with Vietnamese enterprises and exploit opportunities.

“They also have to deal with problems arising during the implementation of the FTAs and work with commercial management ministries and agencies in the host country so that the two sides can minimize trade disputes,” Prime Minster Phuc emphasized.

Zalo Shop partners with Shipchung and BoxMe

BoxMe and Shipchung officially integrated into the Zalo Shop system on March 5, opening up a new partnership to help Zalo’s e-marketplace. To mark the beginning of the partnership, the three sides have launched a program with a 30 per cent discount off shipping costs for Zalo Shop sellers nationwide.

Sales staff at Zalo will be able to easily manage the system, from storage, finishing orders, packaging, and shipping products, helping to minimize operating time, logistics, and costs while improving sales effectiveness and profitability.

“From our successes of Line in Japan and Kakaotalk in South Korea and in M-Commerce (Mobile Phone E-commerce), we believe in the advantages and potential Zalo holds in the future and decided to cooperate, becoming the main shipping unit of Zalo Shop,” said Mr. Han Van Loi, General Manager of BoxMe.

The use of BoxMe’s complete order fulfillment service will allow shippers to save up to 50 per cent on logistics costs during the promotional period. During this period, users can select carrier-sponsored services, including Viettel Post, DHL E-commerce, Nhat Tin, Shipnhanh, Ship60 and Goldtimes.

With experienced logistics professionals in the digital age such as BoxMe and Shipchung, shopkeepers on Zalo Shop will experience professional services at the most economical cost without wasting time and can focus resources on sales and increasing order numbers.

Zalo Shop and Shipchung also have promotion programs for users. Zalo Shop merchants using Zalo Shop’s direct shipment and collection service will receive a 30 per cent discount on shipping charges in March and April and a 10 per cent discount on shipping costs. BoxMe will also provide complete order fulfillment solutions including warehousing, packaging, delivery and collection if the store owner on Zalo has such needs.

Zalo Shop is a popular online sales tool with advantages including access to 80 million Zalo users, built-in communications tools and free customer care via a phone number. Shipchung is a forwarding and receiving service portal for e-commerce, while BoxMe is a logistics and trans-ordering unit with over 3.5 million orders per year.

TTC energy unit signs EPC contract with JGC

Japan’s JGC Corporation has recently announced that its overseas affiliate JGC Vietnam has been awarded an engineering, procurement and construction (EPC) contract for the construction of a mega-solar power generation project in Krong Pa district in the central highlands province of Gia Lai by the Gia Lai Electricity JSC, a subsidiary of the TTC Group.

The lump sum turnkey contract covers the engineering, procurement, construction and commissioning (EPCC) work at the mega-solar power generation plant, with delivery this fall. The plant is to have a capacity of 49 MW, making it among the largest such facilities in the country.

TTC is a multi-industry corporation with nearly 40 years of operations and consists of four corporations, one segment, and over 150 subsidiaries and joint companies. It has investments in several industries, including real estate, energy, agriculture, education and hospitality.

The TTC Energy segment, with its main unit being the Gia Lai Electricity JSC, has invested heavily in clean energy resources and implemented pilot wind and solar power models in potential localities and also in hydro power projects.

TTC plans to achieve capacity of 1,000 MW of solar power and 40 MW of wind power, accounting for 73 per cent of TTC Energy segment’s total power capacity, and 222 MW of hydro power and 150 MW thermal power, accounting for 16 per cent and 11 per cent of its total power capacity, by 2020.

TTC previously planned to deploy 20 solar power projects in provinces including Tay Ninh (324 MW), Binh Thuan (300 MW), and Ninh Thuan (300 MW), with a maximum investment of up to VND20 billion ($878,000) per MW, an internal rate of return (IRR) of at least 15 per cent, and a payback period of less than 12 years.

Signing the EPC contract and cooperating with the JGC Corporation is a milestone for the TTC Energy segment and will leverage each other’s strengths for effective cooperation and development and increase the benefits to the community in the context of climate change.

It also provides the foundation for TTC Energy segment to complete its clean energy development roadmap and expand its scale of operations in line with international standards.

This is also a solution to help Vietnam’s energy industry be ready for new development opportunities and to cope with challenges in the future.

The Gia Lai Electricity JSC last month also signed an EPC contract with the Sharp - SSSA - NSN consortium to implement the Phong Dien Solar Power Plant in central Thua Thien Hue province.

MWG's January online revenue up 119%

The Mobile World Investment JSC (MWG) announced revenue of VND7.8 trillion ($342.5 million) in the first month of this year, up 15 per cent year-on-year and equal to 9 per cent of its annual target.

After-tax profit was VND3 trillion ($131.7 million), up 12 per cent year-on-year and equal to 12 per cent of the annual target. Turnover at thegioididong.com was VND3.18 trillion ($139.6 million), an 11 per cent decline year-on-year, and VND4.16 trillion ($182.6 million) at dienmayxanh.com, up 28 per cent. Online turnover reached VND938 billion ($41.2 million), up 119 per cent year-on-year and equal to 9 per cent of the annual target. Turnover at its Cambodian stores, BigPhone, was VND3.5 billion ($153,688) in January.

Turnover at Bach hoa Xanh stores was VND200 billion ($8.78 million) during the month. The chain is the engine of MWG’s growth to 2019 as thegioididong.com stores are growing slower. The company plans to open 1,000 Bach hoa Xanh stores in certain districts of Ho Chi Minh City this year.

Turnover at Tran Anh Digital World’s 35 stores was VND308 billion ($13.5 million).

The company had 2,090 stores nationwide, including 1,071 thegioididong.com stores, 668 dienmayxanh.com stores, and 316 Bach hoa Xanh stores as at January. It also has four BigPhone stores in Cambodia and plans to open ten more this year, according to Mr. Ho Viet Dong, CEO of MWG in Cambodia.

The company earlier targeted 2018 revenue of VND86.4 trillion ($3.8 billion) and after-tax profit of VND2.6 trillion ($114.5 million).

Latest trends on agenda at Vietnam Online Business Forum

The Vietnam Online Business Forum (VOBF) 2018 will be held in Hanoi on March 14 and in Ho Chi Minh City on March 16 and will discuss blockchain and digital currencies, among other matters, according to an announcement from the Vietnam E-commerce Association (VECOM) on March 5.

VOBF 2018 will have four sessions on the latest trends in e-commerce. The first is entitled “The Age of Connectivity and Information Sharing”, where speakers will discuss maintaining the high growth rates seen in 2017 and new drivers in achieving this growth. The following session is on tax administration for e-commerce, the shared economy, blockchain technology and digital currencies, information security, and the protection of personal information.

The third session will discuss the impact of technology on e-commerce, as cloud computing, big data and mobile technologies have had a tremendous impact on the e-commerce business in Vietnam and other prominent technologies such as artificial intelligence (AI), the Internet of Things (IoT), virtual reality (VR), and blockchain will affect the e-commerce landscape in 2018. The fourth session presents an opportunity for young entrepreneurs to discuss “Successful Startups with E-commerce”.

According to VECOM, Vietnam’s e-commerce growth in 2017 was more than 25 per cent and this can be maintained during the 2018-2020 period. Growth in specific areas has been spectacular. For online retailers, information from thousands of e-commerce websites shows a 35 per cent increase in revenue growth in 2017, while an indirect survey of some delivery companies revealed growth of between 62 and 200 per cent.

The Vietnam E-Commerce Indicator Report 2018 will also be released at VBOF. The E-business Index (EBI), developed by VECOM since 2012, is a useful quantitative tool for identifying the development of e-commerce around the country as well as in each locality.

This year’s forum will attract the participation of organizations and individuals who have a major impact on the online business in Vietnam, including the General Department of Taxation, Amazon, Nielsen, NAPAS, VnPost, Vinaphone, VinaCapital, Zalo, Grab, Mat Bao, PA Vietnam, Vietinbank, MobiFone, the US-ASEAN Business Council, and Fado.

Honda Vietnam announces prices of imported cars from Thailand

Honda Vietnam has officially announced the recommended retail price of the first imported cars from Thailand, which are subject to 0 per cent tariffs, on March 5.

Imports include the Jazz, Accord, CR-V, and Civic models. The CR-V 1.5 L is priced at VND1.06 billion ($46,550) (including VAT) and the CR-V 1.5 G VND998 million ($43,835). The Civic 1.5 L is priced at VND898 million ($39,440), the Civic 1.5 G VND826 million ($36,280), the Jazz 1.5 RS VND619 million ($27,190), and the Jazz 1.5 VX VND589 million ($25,870).

Honda Vietnam will officially order these cars through Honda Auto Dealers nationwide from today, March 5, according to Managing Director of Automotive Sales Vietnam Takayuki Uotani, with the expected delivery time being the second quarter of this year.

Earlier, more than 2,000 Honda vehicles from Thailand - the first batch to be subject to 0 per cent import duties under the ASEAN Free Trade Agreement (AFTA) - were imported into Vietnam.

Under AFTA commitments, a 0 per cent tax is applied to motor cars imported from within the bloc and with a localization rate of 40 per cent or more in the country of origin, starting from January 1 this year.

Mr. Takayuki said that to import the vehicles to Vietnam, the company completed procedures to meet the requirements of Decree No. 116 on the conditions for production, assembly, import, warranty, and car maintenance, and the Vehicle Type Approval certificate granted by Thailand’s Department of Land Transport.

Thanks to the tariff cuts, the price of each motor car is expected to fall by more than VND200 million ($8,785). This would be a turning point in Vietnam’s automobile market. A staff member at Honda’s dealership in My Dinh, Hanoi, said the new vehicles will be rolled out in May or early June, as it will take one or two months to complete checks on emissions, quality, and technical safety at ports.

Insiders earlier calculated that with a 0 per cent import tax, the price of imported cars from ASEAN countries to Vietnam would fall by 20-25 per cent.

HCMC seeking Japanese companies for urban area development

Japanese enterprises are committed to bringing advanced technologies to develop urban infrastructure in Ho Chi Minh City, Mr. Keiji Kimura, Chairman of the Japanese Conference for Overseas Development of Eco-Cities (J-CODE) told a seminar co-hosted  recently by the Ho Chi Minh City Real Estate Association (HoREA) and J-CODE attended by 40 Japanese business leaders and many Vietnamese developers.

Mr. Kimura said that Vietnam is in the process of rapid urbanization; an experience Japan went through 50 years ago. Japan is therefore keen to cooperate with the city to provide experience in addressing challenges such as traffic congestion, population pressure, and environmental pollution, towards building the city into a modern and eco-friendly metropolis with sustainable growth.

Deputy Director-General, City Bureau, at Japan’s Ministry of Land, Infrastructure, Transport and Tourism, Mr. Shinichi Sakaki, said the Japanese Government now has policies to support real estate developers to promote investment abroad. This provides favorable conditions for Ho Chi Minh City to work with Japanese real estate developers in urban infrastructure improvements.

Mr. Le Hoang Chau, Chairman of HoREA, said there remains nearly 1,200 real estate projects in the city that are calling for cooperation and joint ventures with partners, especially partners from Japan. At the same time, many Japanese companies have been involved in major urban infrastructure projects funded by ODA from the Japanese Government.

In the last five years there have been a number of enterprises and funds investing in the local real estate market through various forms of cooperation: joint ventures, merger and acquisitions (M&As), or lending to develop projects in accordance with Japanese property standards.

Moreover, according to Mr. Chau, the potential for business cooperation between Japanese and Vietnamese developers will be huge in the future. 2018 is the first year of implementing the National Assembly’s Resolution No. 54 on specific mechanisms and policies for Ho Chi Minh City’s development.

Deputy Director of the city’s Department of Construction Le Tran Kien said that after 20 years of relocating citizens living on and along dykes and canals, the city has provided compensation and relocated 36,000 houses and targets relocating 20,000 between 2016 and 2020.

Urban landscaping projects are divided into three categories: those using the State budget, those for commercial housing construction in combination with urban development, and those in the form of public-private partnership (PPP).

By 2020, the city plans to repair, upgrade, or build half of 474 apartment buildings built before 1975, he said.

CapitaLand expanding investments in Vietnam

CapitaLand Limited has acquired a prime site for its first integrated development in Vietnam’s capital Hanoi and has successfully set up its second commercial fund in the country, the CapitaLand Vietnam Commercial Value-Added Fund (CVCVF), which has closed at $130 million.

With a fund lifespan of eight years, CapitaLand will hold a 50 per cent stake in CVCVF and MEA Commercial Holdings Pte. Ltd the remainder. The fund will focus on Grade A commercial properties in Vietnam.

Located in Hanoi’s exclusive Tay Ho district with unobstructed views of scenic West Lake, the upcoming 25-story integrated development worth about $217 million will comprise a 380-unit residence including SoHo apartments, around 230,000 square feet (sq ft) of office space. and over 208,000 sq ft of retail space.

“This mixed-use development allows us to strategically diversify and optimize our Vietnam portfolio with both good trading returns and a strong recurring income stream,” said Mr. Lim Ming Yan, President and Group CEO of CapitaLand Limited. “With this latest project, we expand our presence in the capital of Hanoi and reaffirm CapitaLand’s commitment as a long-term partner in Vietnam’s urbanization journey.”

“Together with our $300 million CapitaLand Vietnam Commercial Fund, which was set up last year, we are now closer to our five-year target of leveraging private equity funds to grow our assets under management by S$10 billion ($7.5 billion) before 2020. We are pleased to be able to work with reputable capital partners who want to invest through CapitaLand given our deep local insights and execution know-how. This allows us to scale up fast and be nimble in seizing opportunities in fast-growing markets like Vietnam.”

“Vietnam is a key growth market for CapitaLand and we are seeing strong demand for vibrant, quality live-work-play spaces with rapid urbanization and the evolving lifestyles of young and mobile Vietnamese,” said Mr. Chen Lian Pang, CEO of CapitaLand Vietnam.

2017 was a year of stellar growth for CapitaLand in Vietnam, with the highest home sales ever achieved. The company sold 1,409 residential units, surpassing the previous year’s sales by 63 per cent.

CapitaLand’s latest residential launch, d’Edge Thao Dien in Ho Chi Minh City, was sold out in under two months. “With its prime waterfront location, excellent connectivity and proximity to government offices and an expatriate enclave, we are confident that this upcoming integrated development in Hanoi will be well received, as attested by the success of d’Edge Thao Dien,” Mr. Pang said.

The integrated development will stand on an approximately 0.9 ha in Tay Ho district, well connected to both the new and old business districts and less than a 20-minute drive away from Hanoi’s Noi Bai International Airport.

CapitaLand’s first integrated development in Hanoi will also be in close proximity to the city’s diplomatic district and new government offices headquarters, one of the top international schools, United Nations International School, as well as the expatriate enclave in the district.

Vietnam is the third largest-market for CapitaLand in Southeast Asia, after Singapore and Malaysia. This latest acquisition will expand its portfolio to 12 residential developments, one integrated development, and 21 serviced residences with around 4,700 units across six cities in the country.

Over 280 companies will join ILDEX Vietnam 2018

More than 280 companies will gather at ILDEX Vietnam 2018, an international exhibition focusing on livestock, dairy, meat processing and aquaculture held in Ho Chi Minh City from March 14 -16.

This year’s edition is expected to be the largest so far, featuring six pavilions from the Netherlands, France, the US, the Republic of Korea, China, and the Czech Republic. About 10,000 visitors are expected at the event.

Hoang Thanh Van, head of the Livestock Department under the Ministry of Agriculture and Rural Development Vietnam, said that the Vietnam’s livestock industry has achieved a growth rate of nearly 3 per cent in 2017, despite many challenges in consumption and production.

He noted that the industry is moving from small and fragmented household breeding to large-scale farming in an effort to develop closed line production as well as create a national food value chain. 

Thus, technology plays a crucial role in the development of the local livestock industry.

ILDEX Vietnam 2018 will showcase advanced technology for livestock breeding, dairy, and the aquaculture sector. The event is also a platform for local and international firms to introduce new products and update on contemporary market trends.

Within the framework of the exhibition, there will be seminars held by international and local experts. Some topics include the current situation of dairy and beef cattle breeding in Vietnam, mordern pig production, and Australian cattle imports in Vietnam.

ILDEX Vietnam 2018 is organised by Minh Vi Exhibition and Advertisement Services Co., Ltd. in collaboration with VNU Exhibition Asia Pacific Co., Ltd. 

The event receives strong support from the Livestock Department, the Federation of Asian Veterinary Associations (FAVA), VIV Asia, and many other organisations in the industry.

Big global demand brings opportunities for Vietnam’s wood industry

Wood processing and export businesses of Vietnam hold many opportunities to expand market and increase export value in the time ahead, experts said at a workshop in Ho Chi Minh City on March 7.

Huynh Van Hanh, Vice Chairman of the Handicraft and Wood Industry Association of HCM City, said there is huge room for the wood processing and export sector of Vietnam to develop in the years to come.

Aside from the strong growth of the domestic property market, the global demand for furniture wood and the trade of wood items this year are predicted to rise by 3.5 percent and 4 percent, respectively.

Helmut Merkel, Editor-in-chief of German magazine MOBELMARKT, said the wood consumption demand is increasing, focusing on products with design and colour close to nature. The demand for wood kitchen utensils is also big, accounting for 28 percent of total wood demand in Germany.

However, he said, not many Germans have gained information about furniture products of Vietnam. Vietnamese firms only have connection with distributors, and are yet to reach final customers in this market.

Juliane Lemcke, a wood industry expert of the Swiss Import Promotion Programme, said Vietnam’s wood sector has a number of chances to expand its market as there are good signs from such major importers as the US and the EU. The US market has high demand for paper, wood furniture and engineered wood. In the EU, the demand for wood and wood products is also on a stable upward trend thanks to economic recovery.

She added due to environmental protection pressure and limited material supply, the EU market tends to use more products made from engineered wood, a material which is relatively new in Vietnam but has already been popular in many other countries as it has low costs and wide applicability and reduces the dependence on natural wood materials.

Sharing the same view, Bjorn Henseler, an expert of Schuler group, said Vietnam is strong at processing solid wood, but many other countries, especially developed ones, now prefer industrial and engineered wood. Even in Vietnam, the demand for furniture made from industrial wood is also dominating due to the boom of high-rises.

He said aside from tapping their strength, Vietnamese businesses should swiftly catch up with market trends to make appropriate development strategies.

Juliane Lemcke said Vietnamese companies need to pay more attention to product features and trading methods of import markets. They should also enhance applying technology in transactions and advertising to access more customers.

At the workshop, participants said to boost wood and wood product exports to 10 billion USD in 2020, Vietnamese businesses also need to update technology, improve manpower quality and management capacity, build their own brands, promote product quality, and boost support services to capitalise on opportunities.

Vietnam firms participate in int’l furniture fair in Singapore

Vietnamese wooden furniture and handicraft companies are showcasing their products at the International Furniture Fair Singapore 2018 (IFFS-2018), which opened in the island country on March 8.

Vietnamese Trade Counsellor in Singapore Tran Thu Quynh said the Ministry of Industry and Trade has recently worked with concerned bodies, particularly the provincial Departments of Industry and Trade, to promote Vietnamese products in international markets.

The event presents an opportunity for Vietnamese furniture firms to seek new ways for their products in the context that the interior industry is focusing on environmentally-friendly products.

Le Thi Thuan, Director of the Qua Thuan Handicraft Manufacturing and Trading Company, said this is the third time her company has attended the event.

It is a good opportunity for her enterprise in particular and other Vietnamese furniture producers to promote their products as well as seeking potential international and regional partners, she said.

The Hanoi Department of Industry and Trade took the occasion to introduce its Hanoi Gift Show 2018, slated for October.

The IFFS-2018, running until March 11, saw the participation of over 400 companies from nations and territories worldwide.

According to Singaporean Minister of Trade and Industry S. Iswaran, the global trade value of the wooden products and furniture sector is expected to reach 779 billion USD by 2021.