Indian investors keen on renewables and agriculture in Vietnam

Solar and renewable energy as well as agriculture and agriculture processing, especially instant coffee and tea, are areas where Indian investors are particularly interested in Vietnam, according to Mr. Neeraj Malik, President of the Indian Business Chamber in Vietnam (INCHAM).

Shapoorji Pallonji, Suzlon, Hero Futures, Tata, and Aaveda are among the investors keen on renewable energy and agriculture projects in Vietnam, and Shapoorji Palonji is currently in the process of beginning a project. “The price of 9.35 US cents per kWh announced by the government is very attractive to investors,” he said.

Indian investors, however, must also face a range of obstacles in Vietnam’s business environment. Apart from language issues, ongoing costs relating to legal regulations are a major hurdle. “Finding partners who are trustworthy is also an issue,” said Mr. Malik.

Trade between Vietnam and India has increased rapidly, from $72 million in 1995 to $2.5 billion in 2009 and then $3.89 billion in the first four months of 2017, but reaching the goal of bringing two-way trade to $15 billion by 2020, as committed to by leaders from the two countries, requires further effort, he said.

In terms of investment, India currently has 145 projects in Vietnam with total capital of about $1.35 billion, including investments made via third countries. Direct investment from India to Vietnam is estimated at $775 million, mainly in the fields of telecommunications, information technology, motorcycles, fertilizers, and pharmaceuticals.

Vietnam and India are determined to expand their bilateral relations to match the status of comprehensive strategic partnership, as both have agreed on.

This determination was expressed in talks held by Deputy Prime Minister and Minister of Foreign Affairs Pham Binh Minh and the Indian Minister of External Affairs Ms. Sushma Swaraj in New Delhi on July 4.

The two sides also agreed on various measures to bolster multifaceted bilateral co-operation.

In the economic sphere, Mr. Minh and Ms. Swaraj stressed the need for stronger and more effective measures to turn Vietnam and India into important partners.

They concurred that the Vietnam-India Subcommittee for Trade Co-operation should convene a meeting shortly to identify measures to increase two-way trade to $15 billion by 2020, including providing information and support for businesses, creating favorable conditions for the entry of goods from both countries, and strengthening connections in all fields.

They also agreed to beef up links within the framework of the ASEAN-India Free Trade Agreement and foster cooperation with regional countries in speeding up and finalizing the Regional Comprehensive Economic Partnership (RCEP).

Agriculture lending on the rise

Total outstanding loans for hi-tech agriculture have reached nearly VND32.34 trillion ($14.2 billion), Mr. Tran Van Tan, Deputy Director General of the Credit Department at the State Bank of Vietnam, told a recent conference in Hanoi.

Some VND27.7 trillion ($1.21 billion) of these loans were provided to high-tech agriculture projects and the remaining VND4.6 trillion ($202.4 million) to clean agriculture projects. There are no bad debts, according to the central bank.

Mr. Tan pointed out that outstanding loans for agriculture and rural development have significantly improved in recent times. As at May, total outstanding loans to the sector reached $50.6 billion, an increase of 9.9 per cent since the end of last year and accounting for 19 per cent of all outstanding loans.

Many agricultural support policies have been introduced over the years. In 2010, the government issued Decision No.176/2010 to develop agriculture applying high technology to 2020. After that, Decisions No.41 and 55 were also issued, creating opportunities for individuals and organizations participating in the agriculture sector.

Thanks to such policies, a number of large-scale high-tech projects have gotten underway, involving cattle breeding, horticulture, and fruit and vegetable exports.

In March, Prime Minister Nguyen Xuan Phuc signed a resolution providing a credit package worth VND100 trillion ($4.4 billion) at lower than market rates for the development of high-tech agriculture.  

Vietnam’s agriculture sector targets growth of 2.5 to 2.8 per cent this year, production value growth of 3 to 3.2 per cent, and total export turnover of $32.5 billion.

According to Minister of Agriculture and Rural Development Nguyen Xuan Cuong, 2017 is a pivotal year in the 2016-2020 development plan in the context of the sector still battling many difficulties.

“The sector continues to implement the overall objective of building agriculture into a modern and sustainable sector,” he said, adding that safe agricultural products are a priority in 2017.

Jollibee Vietnam annouces expansion plans

Jollibee Vietnam plans to expand to 300 outlets in Vietnam within the next three years, according to Inside Retail Asia.

“Vietnam will have 95 million people and the economy is also growing,” said Mr. Tony Tan Caktiong, Chairman of the Filipino fast-food chain.

He added there has also been demand in Vietnam for its other brands, “but probably we will focus first on Jollibee, Highlands Coffee, and Pho 24.”

Aside from Vietnam, Jollibee also plans to expand in Japan, Toronto, and Manhattan, ending the year with 4,000 outlets worldwide. In its home market, it has recently opened its 1,000th outlet, in Taguig, 40 years after it came into being.

Jollibee arrived in Vietnam in 1996 and began franchising at the end of 2015. It now has 98 outlets in the country.

Expansion plans call for a combined total of 485 Highlands Coffee and Pho24 outlets, mainly in Vietnam as well as Asia and Australia. Highlands Coffee currently has 159 outlets while Pho 24 has 33.

Jollibee and its partner, Viet Thai International, plan to list JV Superfoods, which owns Highlands Coffee and Pho24, on Vietnam’s stock exchange by July 2019.

This will adjust the shareholding in the Jollibee Vietnam JV company the SuperFoods Group to 60 per cent JFC and 40 per cent VTI from the previous equal ownership. 

SuperFoods is a wholly-owned subsidiary of Jollibee’s JSF Investments and VTI, which has business mostly in Vietnam. It owns and runs the Highlands Coffee and Pho 24 brands and is a franchisee of Hard Rock Cafe in Hong Kong, Macau, and Vietnam.

It aims to offer Asian consumers a quality coffee and café experience at affordable prices through its Highlands Coffee shops and packaged products, and plans to serve consumers in Asia and key cities internationally with quality and healthy Vietnamese food at affordable prices through Pho 24.

Highlands Coffee has 164 outlets in Vietnam and 16 in the Philippines, while Pho 24 has 16 in Vietnam, 13 in Indonesia, two in Cambodia, and one each in Australia and South Korea.

JFC said it will take the lead in capital-raising for the JV to help with its expansion plans, working with financial institutions in Vietnam and other parts of Asia.

Germany's Baden-Wuerttemberg state opens rep office

The state of Baden-Wuerttemberg in Germany opened a representative office in the Delegate of German Industry and Commerce in Vietnam on July 1.

The representative office will provide information on markets, enterprises, and the business environment in Baden-Wuerttemberg and also support German enterprises seeking partners in Vietnam.

Located in southwest Germany, Baden-Wuerttemberg is an important economic center in the EU and attracts a lot of investment to the continent. Bordering France, Austria, and Switzerland, it is an ideal gateway to the EU and its 500 million people. The state always leads in exports and makes a major contribution to Germany’s economy.

Its GDP in 2015 was about $522 billion; higher than in Belgium, Sweden, and Austria. Export turnover totaled $221 billion.

Many global enterprises such as Daimler, Bosch, SAP, GFT Technologies, and Porsche have chosen the state for the site of their headquarters. Its strength, however, is based on the large number of small and medium-sized enterprises in the IT sector.

Regarding the fourth industrial revolution, Baden-Wuerttemberg ranks first in the EU in research and development with prestigious brands such as Fraunhofer and Max-Planck. Engineering and IT are two key industries in the state, making it a leader in the fourth industrial revolution, in which machinery and humans are connected via the internet and digitalization.

More than 4,000 foreign investors have selected Baden-Wuerttemberg as their investment destination thanks to its convenient and modern infrastructure, well-qualified workers, and potential IT customers.

Established in 1993 in Vietnam, the Delegate of German Industry and Commerce represents the Federal Ministry for Economic Affairs and Energy. It supports and accelerates business and investment between German and Vietnamese enterprises. Annually, hundreds of German companies are supported when seeking investment opportunities in Vietnam. Besides business, it also cooperates with German enterprises to implement vocational projects and renewable energy projects, and helps Vietnamese enterprises enter the German market.

Netherlands consulate-general in HCMC offered badge

Consulate General of the Netherlands in Ho Chi Minh City Mr. Simon van der Burg yesterday visited and said goodbye to  Ho Chi Minh City People’s Committee Chairman Nguyen Thanh Phong after he finished his working term.

At the meeting, the city leader highly appreciated and affirmed Simon van der Burg’s mission and responsibility in deepening cooperation relationship between Vietnam and Netherlands in general and between Ho Chi Minh City and Netherlands in particular. 

On the occasion, Chairman Nguyen Thanh Phong offered Ho Chi Minh City Badge to Mr. Simon van der Burg. 

The Netherlands consulate-general shared that he witnessed positive changes in the city in recent years; and expressed his pleasure at contributions of Dutch enterprises into the city’s development. 

He also thanked for active assistances of the city leaders in his working term.

PM resolved to cut zoning plans

Prime Minister Nguyen Xuan Phuc has shown his determination to slash zoning plans, saying the existence of up to 20,000 zoning plans, most of them unworkable, is a huge waste of money.

Phuc clarified the Government’s view on the 20,000 zoning plans just one month after the National Assembly delayed the passage of a draft zoning law until its next sitting in October this year.

The delay was meant to give the Government more time to improve the draft as it would require revisions to around 30 relevant laws and ordinances. The draft law would take effect in 2019 if it is passed by the legislative body later this year.

Speaking at a Government meeting in Hanoi on July 4, Phuc said it is unacceptable that many of the 20,000 zoning plans have impeded economic growth.

Phuc stressed national and regional zoning plans as well as those for power and transport infrastructure should be kept. But he emphasized that ministries and agencies should ponder what to zone and how to lower the number of zoning plans, particularly those having dented economic growth.

The Prime Minister earlier repeatedly underlined the importance of enabling a favorable business environment and stepping up business and trade liberalization.

He told ministries and agencies to stop issuing more business conditions as liberal policies would help improve business efficiency, especially in the private sector which contributes 40% of the country’s gross domestic product (GDP).

Phuc said Vietnam has 600,000 businesses but only one-third of them pay corporate income tax, and that profits of domestic firms are much lower than those of foreign-invested enterprises.

Statistics of the Government put total assets of private firms in Vietnam at US$400 billion, including US$180 billion in fixed assets. Meanwhile, State-owned enterprises have total assets of more than US$200 billion.

If capital efficiency at private and State-owned enterprises rises by only 1%, they would have an extra US$3 billion, equivalent to 1.5% of GDP, according to the Government’s projections.

HCMC’s 2017 growth target seen obtainable

 Deputies of the HCMC People’s Council are pinning high hopes that the city will be able to achieve its 2017 growth target of 8.4-8.7% given monetary market stability, and positive capital mobilization and economic restructuring.

During a group discussion on July 4 as part of the ongoing meeting of the council, deputies were of the opinion that to attain the high growth target, the city government will have to solve a lot of pressing issues, particularly barriers to business. 

Deputy Nguyen Hoang Minh of Tan Phu District said the city’s gross regional domestic product (GRDP) grew 7.76% in the first half of this year, a high level compared to growth in the same periods of previous years.

“If growth momentum is maintained, the city will be able to obtain economic growth of 8.4-8.7% this year,” said Minh, who is also deputy director of the HCMC branch of the State Bank of Vietnam.

Deputies agreed that economic restructuring in the city has been on track as the service sector now accounts for 58.2% of the city’s economy, industrial and construction contribution 23.3% and agro-aqua-forestry 0.7%. 

Minh said the stable monetary and gold markets had helped buoy HCMC’s high growth. In the first six months of this year, capital mobilization inched up nearly 10% year-on-year and outstanding loans amounted to VND1,600 trillion, up almost 10% over the year-earlier period. 

“The lending structure has been positive with 80% of loans going to production and business, 10.8% to real estate and 9.2% to consumption,” Minh said. “Credit was not channeled into real estate as much as feared by experts.”

Minh noted that banks had taken much prudence in lending to the property sector.

The city government said at the council’s meeting on July 4 that total sales of goods and services in the first half edged up 10.3% year-on-year to more than VND451 trillion and exports brought US$14.23 billion (excluding crude oil), up 20.3%. 

The city attracted 2.8 million international visitors in the period, up 14.7% over the year-earlier period, and tourism revenue grew 12% to VND53.62 trillion.

The city expects that total factor productivity (TFP) will contribute 36% of GRDP or higher; total investments will be 35% of GRDP; and budget collections will meet the target.

But deputy Vo Van Tan of Cu Chi District called for the city government to speed up administrative reform and set up an agency in charge of dealing with applications for business establishment to prop up growth.

Tan said there were around 20,000 new businesses set up in the city in January-June while the full-year target is more than 50,000 startups. 

“We encourage household businesses to be converted into companies. However, only 750 household businesses were transformed into companies in the first half and the city should work harder,” Tan said.

Checks on import-export goods overlap

Despite much improvement over time, overlapping checks by different agencies on import and export goods have led business costs to swell, according to a recent report of the Ministry of Planning and Investment.

There have been more checks than needed, putting a heavy administrative burden on enterprises, the ministry commented in the report on results of implementation of the Government’s Resolution 19 which is intended to make the business environment more favorable and improve the competitiveness of the economy.

A recent review conducted by the Ministry of Finance found there are currently 414 legal documents on State management and checks. About 30-35% of import shipments must be inspected prior to customs clearance while Resolution 19 targets only 15% this year.

The reality is that many regulations on inspections have not made State management more efficient and effective. For instance, quarantine and food hygiene rules governing meat imports have resulted in importers shouldering high inspection costs while a mere 1% of shipments have been found to violate the rules. 

The Ministry of Planning and Investment said it is irrational to apply same regulations to different types of livestock products imported into Vietnam. Furthermore, the Ministry of Finance issued Circular 285/2016/TT-BTC hiking fees for quarantine inspections, which has led to higher business costs.

Over the years, enterprises have struggled with food safety checks as per the Government’s Decree 38/2012/ND-CP dated April 25, 2012 detailing implementation of regulations in the Law on Food Safety.

The Ministry of Planning and Investment said a small number of ministries and agencies have closely followed Resolution 19 while many others have not heeded the resolution in the process of drafting legal documents and implementing relevant policies.

On a positive note, more localities including Quang Ninh Province and Hanoi have adopted many initiatives to bring into play the measures and policies detailed in the resolution.

To facilitate business, the Government Office, the Ministry of Finance and localities have held dialogues with enterprises to look into their concerns and find coping solutions. However, not all problems have been thoroughly addressed since the Government released the first version of Resolution 19 to improve the business environment.

“Representatives of some enterprises have expressed their disappointment that slow changes at a number of ministries and agencies have impacted the Government’s effort to make the business environment better and improve the nation’s competitiveness,” said the Ministry of Planning and Investment report. 

To implement Resolution 19 effectively, the Ministry of Planning and Investment proposed the Prime Minister order the Ministry of Science and Technology to work with other relevant ministries and agencies to review and revise goods quality regulations.

The Ministry of Planning and Investment wants the ministries of finance and agriculture-rural development to consider lowering fees for quality and quarantine veterinary checks. The agriculture ministry should quickly solve problems with quarantine checks on processed livestock products imported into Vietnam as requested by enterprises.

US$7.5 billion budget proposed for medium-term investment in HCMC

The government of HCMC has sent a medium-term public investment plan for the 2016-2020 period with a total budget of about VND172 trillion (US$7.56 billion) to the city People’s Council for approval.

Vice chairman of the city People’s Committee Le Thanh Liem on July 4 presented a report on the 2016-2020 public investment plan at the fifth meeting of the ninth People’s Council.

However, the public investment demand in this period is estimated at VND326 trillion, meaning that the city will fall short of about VND154 trillion. To cover the shortfall, the city has asked the central Government to allocate more funds for the city.

In near future, the municipal government will put 156 State-funded projects into an investment stimulus program in which the private sector is encouraged to get involved, so the city will not have to search for about VND47.6 trillion from the State budget to finance these projects.

During a recent working session with Prime Minister Nguyen Xuan Phuc, the city asked him for approval to use about VND67 trillion in proceeds from the equitization and divestment of State-owned stakes at enterprises. According to the city government, the city will repeat this request.

The Economic and Budgetary Committee at the city People’s Council said all of the projects listed in the 2016-2020 public investment plan are crucial for the city’s economic and social development, especially education, healthcare and transport projects.

In particular, the city will use its budget to fund 101 projects in group B which need a total of VND27,087 billion, with VND26,360 billion from the city’s budget and VND727 billion from other sources, and one project in group A with an investment of nearly VND1.5 trillion.

Work starts on household solid waste treatment plant in Tra Vinh

Construction of a household solid waste treatment factory kicked off on July 6 in Luong Hoa commune, Chau Thanh district, the Mekong Delta province of Tra Vinh.

The plant, covering an area of 15ha, is being built at a cost of more than 79 billion VND (around 3.48 million USD) invested by the Vietnam Energy Environment Industrial Technology Company Limited.

It will use Sankio incinerators imported from Japan and is capable of treating 150 tonnes of household solid waste per day. The construction is expected to be completed within one year.

Le Van Tai, Deputy Director of the provincial Department of Construction, said household solid waste in Tra Vinh was previously collected and buried at landfills with a daily amount of over 250 tonnes. Once operational, the factory will handle garbage in Tra Vinh city and neighbouring districts such as Chau Thanh, Tieu Can, Cang Long and Cau Ke.

Tra Vinh will continue to call for investment in household solid waste treatment factories in other coastal localities, including Cau Ngang, Tra Cu and Duyen Hai districts and Duyen Hai township.

VND1.6 trillion sought to build canal embankments

The Ministry of Transport has asked the Government for permission to use a VND1.6 trillion (US$70 million) surplus from phase one of a navigational channel dredging project for coping with rising landslides along Quan Chanh Bo Canal in the Mekong Delta.

In the first phase costing VND6.1 trillion of the project to upgrade the navigational channel for ships to enter the Hau River, the project investor saved VND1.6 trillion, so now the ministry wants to include it in the second phase of the VND9.7-trillion project to have more cash to build embankments along the canal which is used as a navigational channel for larger ships to visit ports.

At a first-half review conference held in Can Tho City last week by the Steering Committee for the Southwest Region, Deputy Minister of Transport Nguyen Nhat said the ministry has proposed the Prime Minister and the Ministry of Planning and Investment allow investors to use surplus amounts in traffic infrastructure projects for other projects in the Mekong Delta.

Landslides have occurred along Quan Chanh Bo Canal since the navigational channel was put into use in early 2016, Nhat added. Four communes of Duyen Hai District, Tra Vinh Province have been separated from the mainland due to the landslides, making life hard for local residents.

According to calculations of the ministry, 21-22 tons of cargo and 450,000-500,000 TEUs will annually go through ports along the Hau River by 2020.

HCMC-Can Tho railway in the offing

Cargo transport between HCMC, the country’s economic center, and the Mekong Delta will be significantly improved as the city government is pushing for a rail link with the delta.

In preparation for the project, agencies in the city will work with Mekong Delta provinces and research institutes over a zoning plan and an investment format for the rail line.

The office of the HCMC People’s Committee last week issued a statement on HCMC chairman Nguyen Thanh Phong’s conclusion on the city’s cooperation with a number of Mekong Delta provinces to develop the railway, which could require a total of US$3.6 billion.  

Since the Southern Institute of Science and Technology and Canada’s financial group MorFund floated their proposals for a railway between HCMC and the delta, the city has thrown its weight behind the project as it will help prop up economic growth in the localities where it passes through.    

Phong assigned the HCMC Department of Transport to work with its counterparts in Long An, Tien Giang, Dong Thap and Vinh Long provinces, and Can Tho City as well as the institute to do the planning for the rail route before it is passed to the Ministry of Transport for consideration and approval.  

Meanwhile, the HCMC Department of Planning and Investment is responsible for meeting with the planning and investment agencies in the Mekong Delta provinces concerned, MorFund, the institute and HCMC Finance and Investment Company (HFIC) to look into an investment format for the project.

The institute studied the HCMC-Can Tho railway years ago. In November 2013, the institute and EDES Group of the U.S. inked a memorandum of understanding on the railway.

The railway is 134 kilometers long and 1.43 meters wide and passenger trains could travel at over 200 kilometers an hour and cargo trains at less than 200 kilometers an hour. 

The line is expected to start at Tan Kien station in HCMC’s outlying district of Binh Chanh and pass through Long An, Tien Giang and Vinh Long provinces before ending at Cai Rang station in Can Tho City. There would be 10 stations and satellite cities along the line.

The institute’s study proposes developing the railway into a high-speed line using South Korean technology and transporting cargo in the initial time. Passenger transport is planned from 2025.

The railway could be built along the HCMC-My Thuan Expressway, so its length could be 30 kilometers shorter than a coastal line.   

The institute has called for partners of Japan and South Korea to invest in the project and a number of firms from the two Northeast Asian countries and China have shown keen interest.

In June 2013, China Development Bank asked its office in Vietnam to work with the institute and propose lending US$1 billion to the project.

The institute underscored the need to have a HCMC-Can Tho railway as it will fuel economic growth in the Mekong Delta region.

Kon Tum coach driver detained for fatal accident

The Kon Tum Province Police on Thursday detained one of the two drivers responsible for an accident on HCM Road that claimed four lives last Friday.

Phan Anh Tài, 29, a resident of Kon Tum City, has been prosecuted for violating traffic regulations.

Initial investigations showed that Tài lost control while driving a coach from Đắk Tô District to Kon Tum City, and crashed into another coach driven by Đỗ Trọng Tuấn, 30, also from Kon Tum City, who was driving in the opposite direction.

One person died on the spot, three others died in hospital and 13 others were injured in the accident.

During the rescue operation, at least 35 people, including 24 medical staff, a Kon Tum Province police official and 10 local residents, are suspected to have come into contact with the blood of a 51-year-old HIV-positive woman who was killed in the crash. 

All of them were given free antiretroviral (ARV) medicine 24 hours after exposure, within the recommended timeframe of 72 hours.

Their blood samples have tested negative for HIV, but final confirmation of the tests is awaited from the Tây Nguyên Institute of Hygiene and Epidemiology.

Dole names VN banana distributor     

Dole Viet Nam Co. Ltd, a subsidiary of fresh fruits producer and marketer Dole Asia Holdings Pte. Ltd, has named U&I Agriculture Corporation as the sole distributor of its bananas in Viet Nam.

Johann Albano, Dole’s vice president for Asian business development, hailed the new partnership saying it would “further strengthen our position as one of the leading providers of quality bananas in the Viet Nam market.”

U&I became the first banana producer in the country to be certified for global good agricultural practices, he said.

Dole started selling its products in Viet Nam in 2009. Besides fresh fruits, it also provides canned and dried fruits and other agricultural products.

AIA Vietnam and Shinhan Bank continue digital partnership

AIA Vietnam and Shinhan Bank continue their teamwork on digital services, aiming to bring a new series of innovations to consumers.

As part of the ongoing collaboration, AIA Vietnam provides the latest technologies to Shinhan Bank’s consumers in Vietnam. The goal is to create a seamless customer experience by leveraging technological innovations.

“By working with AIA, a leading insurer but also a customer experience innovator with digital services capabilities, we hope to bring to Shinhan’s customers an even more complete innovative experience with insurance products and services,” said CEO of Shinhan Bank Vietnam Shin Don Min on July 4, at the launching ceremony for new digital services in Ho Chi Minh City.

Similarly, Wayne Besant, CEO of AIA Vietnam, said that the insurer wants to create a smooth and seamless journey for customers before, during, and after buying their insurance products and services.

“Innovation driven by technology is core to our efforts, a passion shared by Shinhan Bank. We will complement Shinhan by bringing our innovations to all Shinhan branches, providing customers with utmost convenience and a fantastic experience,” said Besant.

On the same day, the two partners have unveiled a series of new services. Innovations include IPoS (Interactive Point of Sale system), an interactive consultancy system enabling speedy financial health checks, paperless product illustrations, and customised solutions. All of these activities are carried out via one single point-of-entry on the iPad.

Meanwhile, My Portal and My GPS are web-based platforms that closely track customers’ policy status and fee payments. They can also check the status of their claims, which is available 24/7.

These digital services ensure that customers are always served quickly, efficiently, and safely, according to the representatives.

At the event, AIA Vietnam also launched AIA Vitality, a unique wellness programme, and the AIA Vitality app, which helps customers develop healthy habits with attractive incentives. 

Interflour unveils new malt production plant in Ba Ria-Vung Tau

Interflour Group officially inaugurated a new malt production plant at Cai Mep Industrial Zone in the southern province of Ba Ria-Vung Tau.

Interflour Group aims to replace malt imports in Vietnam, while at the same time striking a bridgehead to Southeast Asia and Asia

The construction of the Intermalt factory has been finished at the end of 2016 and has now officially commenced production. The facility sits alongside the Interflour Cai Mep Port in southern Vietnam, providing unrivalled access to barley shipments. Intermalt is also one of the biggest projects at Cai Mep Industrial Zone.

Under the plan, the plant boasts a capacity of 110,000 tonnes per year with investment capital of $70 million at the early stage of the operation. In the second phase, the firm will inject another $50 million to boost the capacity to 220,000 tonnes per year.

James Kirton, general director of Intermalt Vietnam, said that the firm chose Vietnam to establish its first malt factory in Southeast Asia to tap into the country’s potential food and beverage market. "We see the increasing demand for malt in the confectionery, biscuit, energy drink, and milk sectors. On top of that, we bank on Vietnam’s booming beer market to fill in a gap in malt supply," he said.

Another malt production project was established in the north, but it only meets 10 per cent of the domestic demand. Therefore, Vietnam has to import 400,000 to 450,000 tonnes of malt per year, mostly from European countries and Australia.

The presence of Intermalt aims to meet the urgent demand of brewers in the country, such as Heineken, Carlsberg, Sapporo, SAB Miller, Habeco, and Sabeco. Intermalt also plans to export malt to other countries in Southeast Asia as well as Asia.

Intermalt is one of the big investment projects of Interflour Group in Vietnam. Its first project was Interflour Vietnam with a capacity of 250,000 tonnes of flour per annum and a modern agricultural port located at Cai Mep Industrial Zone. The recent project is the second flour mill in Danang.

With the Intermalt project, Interflour Group has increased its total investment capital to $170 million in Vietnam. As one of the biggest flour mill corporation in Asia with the capacity of around two million tonnes per year, Interflour Group currently owns many food factories across Asia, from Indonesia, Malaysia, the Philippines, to Vietnam.

Pan Food’s designs to take over BBC

PAN Food has submitted a bid to purchase 1.12 million shares of Bibica Corporation for $4.95 apiece. If the deal goes through, PAN Food will seize a 51 per cent majority.

PAN Food Joint Stock Company is a subsidiary of The PAN Group, and it had a revenue of $12.43 million in 2012 and $121.3 million in 2016.

PAN Food has just made a bid for 1.12 million shares of Bibica Corporation (BBC), which compose 7.27 per cent of its total stock volume. Share price is $4.95 per share. The funds for the share purchase come from owner’s equity and other legal financial sources of PAN Food.

PAN Food has been the biggest shareholder of BBC since 2015. It currently holds 6.74 million shares, which is 43.73 per cent of BBC’s total stocks. If PAN Food succeeds in buying more shares from BBC, it will hold 51 per cent, which is more than Lotte Confectionery’s current holding.

Lotte Confectionery was previously the main shareholder of BBC after its main counterpart Saigon Security Inc. (SSI) sold its entire holding. 

In 2007, BBC sold a 30 per cent stake to Lotte. The stake has been gradually increasing over the years, to 43.56 per cent as of the end of 2013, equal to 6.3 million shares, as a result of SSI’s divestment.

PAN Food has supported BBC in improving its product quality. In 2016 BBC, with the help of PAN Food, has gained $55.5 million in revenue and $3.6 million in profit after tax.

Its dividend yield was 12 per cent. BBC’s 2017 target revenue is $61.5 million and its target profit after tax is $3.8 million. The expected dividend yield in 2017 is 12-18 per cent.

Vo Ngoc Thanh, the third largest shareholder of the company, has sold 300,000 shares, which is 1.96 per cent of the total stock, at the share price of $4.83 per share. Truong Phu Chien, deputy chairman and general director of BBC, also registered to sell 110,000 of his 118,000 shares.

Phan Van Thien, deputy general director, and Vu Van Thuc, deputy director of the Finance and Accounting Department, are also willing to part with about 32,000 shares, which compose 0.21 per cent of BBC’s stock.

AEON chairman awarded “For the cause of Hanoi” title

Takuya Okada, honourary chairman and adviser of Aeon Group, received the title “For the cause of Hanoi”  in recognition of his contribution to the city’s socioeconomic development as well as promoting investment, cooperation and friendship between Vietnam and Japan.

Aeon, Japan’s leading retail developer, is pursuing peace and contributing to local communities, while remaining respectful of humanity and looking at the customer’s point of view. For this reason, Aeon has carried out various corporate social responsibility activities throughout many countries, including Vietnam.

The “For the cause of Hanoi” title is granted annually for Vietnamese and foreign citizens who have been continuously contributing to the development of Hanoi.

Since its establishment in Vietnam in 2009, Aeon has carried out many CSR activities that contributed to lives of local people and communities, such as tree plantation, school construction support project, teenage ambassadors programme, Aeon scholarship for excellent students, and environmental protection programmes, among others.

In particular, Aeon has planted 75,000 trees in the central province of Thua Thien-Hue, 15,000 trees at Ba Vi National Forest, and recently 200 Japanese cherry blossom trees at Hoa Binh Park with the hope that everyone could enjoy the beautiful sight of cherry blossoms in Vietnam. This is 90,200 trees in total and the number is expected to increase in the coming years.

Despite the fact that cherry blossoms are very hard to grow in Vietnam, to make the wish come true, Iwamura Yasutsugu,  general director of Aeon Mall Vietnam, said that he had studied the weather and land in Vietnam extensively and had been continuously searching for suppliers that can provide good-quality trees to grow.

Iwamura also said that he hopes the community could join hands to take good care of the trees.

"In 5-10 years, we might have the chance to see Hoa Binh Park filled up with bright cherry blossom petals," he said.

VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET