The General Statistics Office (GSO) has reported encouraging data in the labour market in the first six months of 2019, including unemployment decline and income improvement.

It highlighted a positive shift in the labour structure with a sharp fall in the proportion of agro-forestry-fishery labourers and increases of those in the industry – construction and service sectors.

During the period, the number of employed workers at the age of 15 and above reached 54.3 million.

The figure included 19.2 million in the agro-forestry-fishery sector, equivalent to 35.3 percent of the total and down 3.1 percent year on year. Meanwhile, 15.7 million worked in the industry – construction sector (accounting for 28.9 percent and up 2.3 percent) and 19.4 million in the service sector (accounting for 35.8 percent and up 0.8 percent).

The unemployment rate among people of working age was 2.16 percent. It was 3.11 percent in urban areas and 1.66 percent in rural areas, according to the GSO.

In the January-June period, the average monthly income of wage earners was estimated at 6.7 million VND. This figure was 7.1 million VND among men, 6.3 million VND among women, 7.8 million VND among wage earners in urban areas, and 5.9 million VND among those in rural areas.

The monthly income in the group of leaders of sectors, all-level administrations and units averaged 11.2 million VND, up 1.7 million VND year on year. The figure rose by 1 million VND to 9.2 million VND among specialists and skilled technicians, and by 746,000 VND to 4.8 million VND among unskilled workers, data showed.

Hundreds of electricity networks built in southern region in six months

The Electricity of Vietnam Southern Power Corporation (EVNSPC) began construction of and put into operation hundreds of grid projects in the first six months of 2019.

The corporation started work on 15 110kV grid projects and completed nine, including 67km of power transmission line.

It also put into operation 137 distribution networks, including 391km of new medium voltage transmission line and 1,953km of low voltage transmission line.

As of July 8, the EVNSPC had signed contracts to buy power from 4,071 clients who installed solar panels on rooftops.

In June, the company sold over 6.26 billion kWh of commercial electricity, up 30.6 percent compared to the previous month and 9.7 percent against the same period last year.

In the first half of the year, the total commercial electricity of the corporation surpassed 35.5 billion kWh, a year-on-year rise of 10.47 percent, fulfilling 48.45 percent of the annual set target.

According to the corporation, from now to the year’s end, it will continue putting into operation more 110kW transformer stations, improving the quality of electricity supply, and ensuring the safe operation of power networks.

Mekong, south-east regions advised to develop mushroom farms

The Mekong Delta and south-eastern regions have great potential for growing mushroom year round thanks to their favourable climate and availability of vast quantities of agricultural by-products that can be used as inputs, according to the National Agricultural Extension Centre.

Besides, farmers in the regions basically know all about mushroom breeding techniques and cultivation of straw, fungus, button and oyster mushrooms while the demand for the fungus has been growing gradually.

Tran Van Khoi, acting director of the centre, told a forum on hi-tech mushroom production held recently in An Giang province that it has developed in southern provinces, generating good incomes for farmers.

They grow 16 kinds of mushrooms with an annual output of 250,000 tonnes, earning 25-30 million USD from exports.

Oyster mushrooms fetch 2,600 USD per tonne, which is higher than from other agricultural products, besides which mushroom cultivation helps use up a large quantity of agricultural residues and creates employment, Khoi said.

The Mekong and south-eastern regions have farming residues like straw that could be used to grow mushrooms, but production of the fungi is well below potential because of poor use of technology.

Le Quang Thai of the Nacentech Technology and Business Incubator Centre, said the diversity of edible and medicinal mushrooms in Vietnam is still poor.

The use of technology, such as environmental sensors and automation, has not been considered, he said.

The biggest problem is in the area of post-harvest preservation technologies since mushrooms are mainly consumed fresh or dried and salted for export within 24 hours after harvest, he said.

Mushrooms are mostly still cultivated manually in traditional ways since farmers do not know they can improve productivity with technology, he said.

They should use technologies more to increase production of high-quality mushrooms, he added.

Hanoi to have 30 new industrial clusters in 2019

The capital city of Hanoi has set a target of having 30 new industrial clusters (ICs) by the end of this year, said Le Hong Thang, Director of the municipal Department of Industry and Trade.

Since the ICs will be located in urban areas, priority should be given to projects in clean and hi-tech industries, Thang said at the opening of the 9th session of the municipal People’s Council that opened on July 8.

Hanoi authorities have made great efforts to attract both foreign and domestic enterprises to ICs over the years, helping to affirm the city’s position as the leading economic hub in the north, he added.

The city has thus far this year approved the establishment of 11 ICs.

Hanoi is now home to 70 operational ICs, covering a total area of more than 1,300ha, with a total of 3,100 businesses.

Following the city’s industrial cluster development master plan for 2020 with a vision to 2030, the city is expected to have 159 ICs spanning more than 3,200ha by 2030.

In the period to 2020, there will be 138 industrial clusters with an area of more than 2,620ha in the city. Of these, 52 are newly established zones, covering 590ha.

In the 2021 to 2030 period, five existing industrial clusters will be expanded with a total area of 45.4ha, and 21 new ones covering 536ha will be established.

According to the plan, industrial complexes located in five northern districts - Soc Son, Me Linh, Dong Anh, Long Bien and Gia Lam - will give priority to several sectors, including electronics and information technology, engineering, automotive, and production of new materials, as well as pharmaceuticals and cosmetics.

Industrial complexes in the two southern districts of Thuong Tin and Phu Xuyen will focus on luring projects in high-tech farming and supporting industries, especially those serving the textile and garment, footwear, mechanical engineering and electronics sectors.

Meanwhile, those in the western areas of the city, such as Hoa Lac, Xuan Mai and Mieu Mon, will be involved in bio-industries for agriculture, hi-tech industries, construction materials and hi-end furniture production.

Rising FDI calls for better supporting industry

The domestic supporting industry needs to improve to take advantage of foreign direct investment (FDI) pouring into Vietnam, experts have urged.

In the first six months of the year, Vietnam attracted more than 1,720 new FDI projects with total registered capital of nearly 7.5 billion USD, according to the General Department of Statistics.

The period also saw 9.1 billion USD in FDI being disbursed, an 8.1 percent increase from the same period last year.

More foreign investors have also injected capital to buy shares of or contributed capital to Vietnamese businesses, totalling around 8.12 billion USD so far, nearly doubling the figure in the same period last year.

Dr Huynh Thanh Dien of the HCM City University of Economics said that while this was a positive sign for the economy, authorities should examine the capability of domestic businesses, especially those in the supporting industry.

The localisation rate in the supporting industry, for example, needs to be increased to attract foreign-invested companies.

Businesses' ability to be part of the global supply chain for supporting industries is still limited. For instance, car manufacturers in Vietnam have to import most parts, while the electrical and electronics industry has to import nearly all of its auxiliary products such as components, plastics and rubber products.

Nguyen Phuong Dong, Deputy Director of the city's Department of Industry and Trade, said that many domestic supporting industry businesses continued to struggle with capital problems, lack of access to market information, and limited management capability to participate into the global supply chain.

A survey conducted by the department and Samsung showed that the number of faulty products and inventory goods in Vietnamese supporting businesses was still high, and the prices of their products were relatively high and non-competitive.

In addition, there is no concentrated industrial park dedicated to the supporting industry, so manufacturers in the industry are dispersed throughout many areas.

Without an industrial park and adequate infrastructure, businesses find it difficult to satisfy FDI companies' demands.

To help improve business capability, the department and the city have organised many programmes, one of which businesses received capability evaluation, innovative advice, and preferential interest rates to renovate their technologies.

Dong said the Ministry of Industry and Trade and the city would organise more events for the supporting industry to network and learn more about the demands of end-product manufacturers.

Binh Thuan’s dragon fruits promoted in Hanoi

Some 500 tonnes of dragon fruits from the southern province of Binh Thuan are expected to be sold at Big C supermarket and GO! Market chains in the northern region from July 7-14.

Customers can buy Binh Thuan’s special fruits which were purchased directly from growers and co-operatives at Big C supermarket and GO! Market chains for 23,900 VND (1.03 USD) per kilo.

To enhance the brand of Binh Thuan dragon fruits, supermarkets are also offering processed food and drinks such as smoothies, juices and cakes made of dragon fruits.

Binh Thuan is the hub for dragon fruits, most of which is exported to China through unofficial channels.

The provincial People's Committee has worked with Thailand’s Central Group, which owns the Big C chain, to promote the Binh Thuan’s dragon fruit brand in the domestic market.

Dragon fruit is a key agricultural product of Binh Thuan province, according to a representative of the Central Group. The fruit is also part of the national "One Commune, One Product" promotion programme that the group is supporting.

Tourism sector reaps impressive outcomes in H1

The number of international visitors to Vietnam in the first six months of 2019 was estimated at 8.5 million, up 7.5 percent compared to the same period last year, the Vietnam National Administration of Tourism (VNAT) said at a press conference on July 9.

In January-June, the tourism sector grossed 338.2 trillion VND (14.5 billion USD) in revenues, a year-on-year rise of 8.4 percent, the VNAT reported.

Vu Quoc Tri, chief of office at the VNAT, said the tourism industry deployed a number of measures to maintain the growth of domestic and overseas tourists in the six-month period.

He added that the VNAT also completed and submitted to the Prime Minister a strategy for Vietnam’s tourism development through 2030, with a vision to 2050 and a scheme on rural tourism development in association with building new rural areas.

The sector organised successfully the ASEAN Tourism Forum (ATF) 2019 with over 50 events and took advantage of the country’s hosting the second summit between the Democratic People’s Republic of Korea (DPRK) and the US to promote the image of Vietnam.

The VNAT participated in six international tourism fairs and organised eight road shows in ASEAN countries, China, Russia, and the Republic of Korea (RoK) as well as opened the first tourism promotion representative office in the RoK under the public-private partnership model.

It also assisted a number of localities such as Cao Bang, Ha Tinh, Ninh Binh, Quang Nam, Quang Ngai and Khanh Hoa in organising tourism promotion events and developing tourism products, according to Tri.

However, besides the achievements, shortcomings remain in tourism activities such as ensuring security, safety and environmental hygiene, especially during festivals and tourism high season, he said.

In the remainder of 2019, Vietnam aims to maintain the growth of domestic and international tourists to realise the yearly target of 17.5-18 million foreign visitors and 85 million domestic travellers. The total revenues from tourism are expected to reach 700 trillion VND (30.1 billion USD).

Tri said the VNAT will host an event to honour leading tourism businesses. It will continue improving the management of destinations and quality of tourism services and tour guides, he added.

The administration will also coordinate with localities to organise the International Travel Expo (ITE) in Ho Chi Minh City and the National Tourism Year 2019 in the central coastal province of Khanh Hoa, and prepare for the National Tourism Year 2020 in the northern province of Ninh Binh.

The VNAT plans to proactively promote the Formula One (F1) racing car to be held in Hanoi in April 2020, and the ASEAN Year 2020 when Vietnam will serve as Chair of the Association of Southeast Asian Nations (ASEAN).

Foreign investment in Da Nang exceeds 542 million USD in first half

The central city of Da Nang drew more than 542 million USD worth of foreign investment between January and June.

The figures were released at the opening sitting on July 9 of the 11th session of the 9th municipal People’s Council.

It was also reported at the function that total domestic investment in the city throughout the six-month period surpassed 2.3 trillion VND (98.9 million USD).

Vice Chairman of the municipal People’s Committee Ho Ky Minh told the council that the result was attributable to various investment attraction activities, in line with the city’s policy on making 2019 a year of attracting investment.

Da Nang successfully organised a spring conference with investors, during which investment registration certificates were granted for 8 projects worth over 492 million USD. Meanwhile, the local authorities allowed research for 11 potential projects worth nearly 3.5 billion USD.

Despite such positive outcomes, the city has failed to meet the targets in some aspects, he noted.

In the last half of the year, the city plans to boost its business-investment promotion; improve the management of investment in construction and speed up the progress of major projects; as well as enhance its urban and environmental management, among others.

The 11th session of the 9th municipal People’s Council will review the implementation of socio-economic plans in the first half and outline measures to carry out tasks in the remaining part of the year.

The session is set to review 59 reports, with discussion revolving around such pressing issues in the locality as waste, pollution, water shortage, and land acquisition.

Quang Ngai urges completion of waste treatment plant

The People’s Committee of central Quang Ngai province has asked the North Investment and Development Construction JSC to complete the building of the Nghia Ky waste treatment plant and put it into operation before September 30.

In a document sent to the company, Chairman of the provincial People’s Committee Tran Ngoc Cang requested the company to quickly install the second incinerator system and complete the trial run before August.

The People’s Committee assigned the provincial Department of Planning and Investment to coordinate with relevant agencies to regularly monitor construction progress.

It has also asked the agencies to help the company deal with any difficulties and speed up construction. The results must be reported to the committee.

The company will have its investment licence revoked and face penalties if it fails to complete construction on time.

The provincial People’s Committee has asked the People's Committee of Tu Nghia district, where the plant is located, to tell local people to stop actions that are hindering the operation of the plant.

Nguyen Tan Phap, director of the company’s branch in Quang Ngai, told Vietnam News Agency that the company was committed to putting the plant into operation as soon as possible.

However, it would be difficult to meet the September 30 deadline because installing the second incinerator and operating it for a trial period would take a lot of time.

Currently, the plant is testing the first incinerator. The second incinerator is expected to be installed by the end of this month.

Phap said the most difficult problem for the company was financing. More 30 billion VND (nearly 1.3 million USD) would be needed to complete the project.

He said the company would not be able to borrow commercial capital as the first incinerator had not yet gone into official operation. The company was seeking other sources of capital, he said.

On July 6, 2018, local people in Tu Nghia district’s Nghia Ky commune set up barriers to block garbage trucks from entering Nghia Ky landfill as a way of protesting the pollution caused by the landfill.

The province held talks with local residents and agreed to temporarily transport garbage to Dong Na landfill in Quang Ngai city.

Long An cancels 18 projects over slow progress

Authorities in the Mekong Delta province of Long An have so far this year revoked licences of 9 domestic and 9 foreign-funded projects due to their sluggish progress.

The projects use a total of 10ha of land, of which 5.5ha were occupied by the foreign-funded investors.

The revoked foreign-invested projects had combined investment capital of 24 million USD, while that of domestic ones hit 282 billion VND (12.14 million USD).

Nguyen Van Tieu, Director of the provincial Department of Planning and Investment, said in addition to ending the operation of several projects, Long An pays attention to create favourable conditions for investors via various investment promotion activities.

Last year, Long An issued licences to 90 new foreign direct investment (FDI) projects with a combined capital of 450 million USD, thus maintaining its leading position in FDI attraction in the Mekong Delta region.

In the first six months of 2019, the province attracted 115 domestic projects worth over 10.94 trillion VND (471.24 million USD), 49 projects and 4.9 trillion VND higher than that of the same period last year. There were also 58 new foreign-invested projects licensed, with their registered capital totalling 208.6 million USD.

Car sales surge 21 percent in first half of 2019

Car sales reached 281,473 units during the January-June period, a year-on-year rise of 21 percent, the Vietnam Automobile Manufacturers’ Association (VAMA) reported on July 9.

As many as 113,115 passenger cars were sold in the period, up 35 percent from the same time last year. Meanwhile, sales of commercial and special-purpose vehicles experienced fell 1.5 percent and 32 percent to 38,071 units and 3,047 units, respectively.

In stark contrast with the sales of domestically-assembled cars which dropped 14 percent year on year to 91,731, that of imported units shot up 203 percent to 62,542.

Automobile sales in June picked up 0.1 percent on strong discounts and various promotional programmes. As many as 27,520 units were sold, including 20,287 passenger, 6,649 commercial and 584 special-purpose cars.

VAMA said that the figures do not reflect the country’s entire automobile market, as they did not include sales of other manufacturers that are not VAMA members such as Audi, Jaguar, Land Rover, Mercedes-Benz, Subaru, Volkswagen, Volvo, and Hyundai Thanh Cong.

Hyundai Thanh Cong alone sold 35,723 vehicles of all kinds in the six-month period.

According to experts, the auto market registered a modest expansion as customers are waiting for new models of Suzuki, BMW and Mercedes-Benz, among others, to be rolled out in July.

Many customers have ordered VinFast’s Lux sedan and Lux SUV, and they will receive their cars at the end of July, thus affecting VAMA’s car sales in the first half.

Besides, the Vietnam Motor Show 2019, to be held at the Saigon Exhibition and Convention Centre from October 23-27, will be a chance for local consumers to choose suitable cars from renowned brands like Audi, Ford, Jaguar, Honda, Land Rover, Lexus, Mercedes-Benz, Mitsubishi, Nissan, Suzuki, Volkswagen and Volvo.

Ways sought to speed up construction of HCM City–Moc Bai Highway

The authorities of Ho Chi Minh City and Tay Ninh province are building shopping malls and service facilities along the HCM City – Moc Bai Highway to raise revenue for construction of the highway.

The authorities in both localities agreed to clear land at the intersection of Ring Road No 3 and No 4 to build parking lots, shopping malls and service facilities, according to the HCM City People's Committee. Compensation will be paid to affected residents.

Vo Van Hoan, Vice Chairman of the People's Committee, assigned the city’s Department of Planning and Investment and Department of Natural Resources and Environment to work with other agencies to submit a plan on the construction of these facilities by today. He also asked them to organise bidding to select investors.

The highway, which is being implemented under a public-private partnership, will connect the city with Moc Bai International Border Gate in Tay Ninh province.

The road will run from Ring Road No 3 in HCM City’s Hoc Mon district to Moc Bai, an international border gate between Vietnam and Cambodia in southern Tay Ninh province.

The first phase will involve the construction of two separate sections of the highway.

The first will be a 33km section from HCM City to Tay Ninh province’s Trang Bang district, which will have four lanes, with a maximum speed of 120km per hour for vehicles.

The second section from Trang Bang to Moc Bai will be 20.5km long and have four lanes with a designed speed of 80km per hour.

After the two sections are completed, the second phase of construction will expand the expressway from six to eight lanes.

It will be completed in two phases and cost 10.7 trillion VND (459.36 million USD).

Both localities will pay land clearance compensation from their respective budgets. HCM City will pay 2 trillion VND (85.87 million USD) and Tay Ninh 1 trillion VND (42.94 million USD).

The remaining construction costs will be covered by private investors who will be selected in a bidding process or appointed by the government.

Currently, the only road connecting HCM City and Tay Ninh province is National Highway 22, which has become overloaded.

The HCM City – Moc Bai Highway project will meet the transport demand of the region and fit with the national highway network plan.

In particular, the highway will shorten the time it takes to travel from HCM City to the international border gate, and strengthen the connection between Vietnam’s key southern economic zones and the East-West economic corridor, including Myanmar, Thailand, Laos, Cambodia and Vietnam.

It will also connect to the Asian Highway Network through Cambodia’s Phnom Penh – Bavet high-speed expressway.

Credit Suisse, ASH seek investment opportunities in HCM City

Credit Suisse of Switzerland is seeking co-operation opportunities in smart urban and other infrastructure investment projects in HCM City, Urs Buchmann, vice chairman of Asia-Pacific Corporate Banking at the company, said.

Credit Suisse was one of the first banks to co-operate with Vietnamese partners in the financial area, he said.

Speaking at a meeting with the vice chairman of HCM City People’s Committee, Tran Vinh Tuyen, and the CEO of Aebi Schmidt Holding (ASH) Company, Barend Fruithof, on Monday, Buchmann said the bank has regularly helped Swiss business delegations explore the Vietnamese market since 1990.

Fruithof said that ASH has many high-tech products such as airport sanitary equipment, road cleaners and products for high-tech agriculture.

The company has shifted from selling products to providing high-tech solutions, and is focusing on developing its Asian market.

The company is interested in smart urban projects that HCM City is implementing and looks forward to seeking co-operation opportunities, according to Buchmann.

Tuyen said to solve problems such as flooding, waste and traffic jams, the city must apply technologies to management and administrative activities.

“During this period, the city wants to co-operate with businesses and conduct pilot models at hospitals and schools, then effectively replicate those models,” he said.

The city is currently building key parts for the smart and sustainable city project. It expects to co-operate with enterprises funded by Credit Suisse and will create favourable conditions for Credit Suisse to explore and participate in smart urban projects,” he added.

Tuyen said the city wanted to co-operate with partners to implement many projects, instead of using the city’s limited budget.

He will send a list of 200 projects for which the city is seeking investment capital to Credit Suisse and ASH for research.

“I expect that Credit Suisse will introduce this to European businesses, which can help develop smart urban infrastructure in the city,” he said.

Sacombank speeds up Basel II roadmap with risk regulation project

Sacombank and PwC (Vietnam) Limited on July 5 signed a deal and began the "Enhancement of valuation model and development of market risk regulatory capital charged model” project.

It seeks to improve the bank’s risk management capacity while helping create a solid foundation to comply with the State Bank of Vietnam (SBV) regulations and speed up the roadmap for adopting Basel II standards.

It is planned for completion in February 2020.

It will help Sacombank achieve its main objectives of upgrading models for valuation and quantifying risks in line with its current and future business portfolios; developing a methodology for market risk regulatory capital charged model following the standardised measurement method and internal model approach; developing stamina-testing methods, including principles/assumptions, tests and identification of all factors that can result in market risks to business portfolios, to come up with timely responses.

Talking about the rationale for the project, Nguyen Thi Kim Oanh, director of Sacombank’s capital market and foreign exchange division and the project director, said: “As a pioneer bank, more than ever, Sacombank expects to apply the most advanced practices and standards in modernising risk management activities in the capital and foreign exchange market businesses to ensure the bank operates in a safe and sustainable manner.

Sacombank’s project is also aimed at “bringing about significant changes in quality and comprehensive reform, creating a sustainable foundation to cope with the competitive business environment.”

Grant Arthur Dennis, PwC Vietnam’s chairman, said Vi?t Nam's financial market has changed very quickly in recent times, requiring banks to adapt.

Therefore, this project would be a big step for Sacombank in its journey to become the leading retail bank in Viet Nam, he said, assuring that PwC would bring a team of experienced foreign and Vietnamese consultants to co-ordinate with Sacombank to complete the project.

Speaking at the signing ceremony, Le Thi Hoa, an independent board member and chairwoman of the steering committee for implementing the Basel II project, said: “The completion of this project will not only meet SBV's expectations but more importantly improve Sacombank's governance and management system and help the bank’s staff access advanced knowledge the world is using.”

In 2015 Sacombank was one of 10 banks selected by the SBV to pilot risk management in line with Basel II norms.

In 2017 the bank implemented the loan origination system to help automate and professionalise credit allocation and management.

A year later it launched two risk management projects, "Perfecting the risk management database framework" and "Credit risk quantification model".

These are its two most important projects in the process of completing standardised approach and adopting the internal approach under the Basel II.

In February this year Sacombank and PwC Vietnam Consulting Co., Ltd. officially launched the "Upgrading and perfecting the asset liability management framework" project.

With such investment in key projects, Sacombank has been preparing to achieve the goal of adopting Basel II norms.

Deutsche Bank's restructuring not expected to harm VN market

Recent developments at Deutsche Bank will have no effects on capital flows into Viet Nam, according to Bao Viet Securities Co (BVSC).

German Deutsche Bank early this week announced it will axe its global equities unit, cut some fixed-income operations and lay off around 18,000 staff as part of its restructuring plan.

As of March 31, the German lender managed 704 billion euros (US$788.7 billion) worth of assets across the globe in 15 countries.

The bank entered Viet Nam in 1992 and has invested in the Vietnamese equities market through the two funds – FTSE Vietnam ETF and Vietnam Phoenix Fund Limited, formerly known as DWS Vietnam Fund.

FTSE Vietnam ETF is an index-focused exchange-traded fund set up by Deutsche Bank in January 2008 and it is the second-biggest fund in Viet Nam. The fund is managing nearly $305 million worth of Vietnamese assets, up 5.8 per cent from one year earlier.

Large-cap companies’ stocks invested by FTSE Vietnam ETF include “Vin” companies – Vingroup, Vinhomes and Vincom Retail, dairy producer Vinamilk, food and beverage firm Masan, Vietcombank, petrol firm Petrolimex and SSI Securities.

Those large-cap stocks account for between 2.32 per cent and 15.55 per cent of the fund’s total investment.

Deutsche Bank also runs Vietnam Phoenix Fund Limited, which oversees around $150 million worth of Vietnamese shares.

Large-cap stocks targeted by the fund included listed firms such as tech group FPT and steel producer Hoa Phat as well as non-listed companies such as Greenfeed and Anova Corp.

Therefore, the announcement by Deutsche Bank has sparked concerns the Vietnamese equities market may be impacted.

The bank would carry out a series of changes to reduce 25 per cent of business costs by 2022, BVSC said in a note on Monday.

The bank would completely exit the global stock market and reduce capital for the bond market by about 40 per cent. The global stock market will be handed over to the French BNP Paribas.

The German lender would also set up a corporate banking unit to focus on corporate lending and expand its private banking segment and asset management services for individual customers in Asia.

DWS fund management would be strengthened to reach the top 10 largest fund management companies in the world.

Therefore, the funds “will not be negatively affected by this restructuring but may possibly benefit in the future,” BVSC said.

The financial company Bien An Toan’s investment director Huynh Minh Tuan told local media that the German bank’s decision would definitely weigh on investor sentiment because it is one of the top asset management businesses in the world.

FTSE Vietnam ETF is operated based on the capital raised from investors so it will not stop running unless investors decide to cash out – which is unlikely, according to Tuan.

The German bank may decide to sell Vietnamese assets at low price levels to quit the local market, putting pressure on other investors.

That scenario is possible but the Vietnamese stock market is quite vulnerable now and any buyers will need some time to prepare for the deals.

In addition, Viet Nam is rising as a new destination for foreign capital, so there is little chance for Deutsche Bank to exit the country, according to Tuan.

Banking expert clarifies reasons behind six-month credit growth

The soaring credit growth recorded during the first half of 2019 can be attributed to efforts by local firms to complete periodical business reports and some banks’ application of Basel II standards, a senior banking expert has claimed.

According to the State Bank of Vietnam, the banking sector reported the credit growth of 7.33 per cent in the first half of 2019 in comparison with late 2018.

The ratio was also higher than that of the corresponding period last year which saw the credit growth of 6.14 percent.

Exports, along with the processing and manufacturing sector, were considered as major contributors to the six-month credit growth.

Can Van Luc, senior expert of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), spelled out two key reasons for the credit growth.

Firstly, every June banks and firms seek to mobilize loans and close accounting books for the first half of the year in order to complete their six-month business reports.

Banks and listed companies must then have these reports audited. The audited reports serve as a significant reference for credit institutions and investors.

Another reason is that the second quarter of 2019 saw a number of commercial banks begin to apply the minimum capital adequacy ratio under Basel II standards. In turn, the central bank enlarged credit growth quotas set for these banks, thus facilitating them to increase credit growth during the reviewed period.

The credit growth rate of 7.33 per cent is not concerning, Luc said, adding this rate stays compatible with current financial developments and the implementation of the full-year target of credit growth.

Liquidity in the banking sector now remains steady, yielding no significant pressure on banks to mobilize capital.

However, in the medium to long term, many commercial banks are forecast to face pressure to raise capital in order to follow a scheme aimed at reducing short-term capital used for long - term loans and increase their tier 2 capital in line with Basel II standards.

Hanoi plans US$21.5 million for startup development

Hanoi has rectified a project to pump VND500 billion (US$21.5 million) into leveraging the development of startups in the city by 2025.

The project received approval at the 9th session of the Hanoi municipal People’s Council which ran from July 8 - 10.

It aims to assist the development of around 500 startups. Of the figure, some 150 are projected to commercialize their products while 20 per cent of them will be capable of mobilizing funds from capital ventures and making M&A deals.

The scheme is expected to help the city consolidate its ecosystem for startups, with an added focus on establishing business incubators and private startup support funds.

With 260,000 enterprises operating throughout the capital, Hanoi ranks second among nationwide localities in terms of number of businesses.

There has been an annual average of 20,000 firms founded during the past three years, but only 0.1 per cent of them have managed to raise capital for their operation and expansion.

Nintendo to move Switch production to Vietnam on tariff fears

Japan's Nintendo will shift some of the production of its popular Switch gaming consoles to Vietnam from China.

With Washington threatening to impose 25 percent tariffs on more Chinese goods, production of these consoles will be moved to plants in Vietnam owned by Taiwanese contract manufacturer Hon Hai Precision Industry, better known as Foxconn, Nikkei Asian Review reported.

It is now almost completely manufactured in China by contract manufacturers, including Foxconn.

Foxconn has three facilities in Vietnam to manufacture computers, car parts and other electronic products in the northern Bac Ninh and Bac Giang provinces.

Last year some 40 percent of the nearly 17 million Switch consoles produced were sold in the Americas, chiefly in the U.S., Nintendo's biggest market by sales.

The U.S. has so far slapped a 25 percent tariff on $250 billion worth of Chinese goods, and Beijing has retaliated with tariffs on $60 billion worth of American imports.

However, with no sign of the trade war ending anytime soon, many manufacturers are moving their production out of China.

Japanese consumer electronics company Sharp said in May it plans to move its personal computers production to a new plant in Vietnam, which is expected to begin operations after October.

Adidas CEO Kasper Rorsted said the same month his company is shifting footwear sourcing from China to Vietnam.

Go-Viet headhunts managers, set to launch online payment

Ride-hailing firm Go-Viet is looking for as many as 16 senior leaders for existing operations and a new online payment service.

The affiliate of Indonesian ride-hailing giant Go-Jek is looking for a new head of operations, and new heads of legal, marketing, government relations and anti-fraud departments. Go-Viet is also looking for a head of business development and a legal senior manager for its Go-Pay service.

Most jobs require applicants to have at least eight years of experience in relevant areas. The recruitment announcement comes as Go-Viet, operating in Hanoi and Ho Chi Minh City, lacks a cashless service that has already been introduced by major competitors like Grab, FastGo and Be.

The company, having been in Vietnam since last August, only offers motorbike and delivery services. No specific launch date has been announced for car hailing services.

Go-Viet faced major leadership challenges in March when its general director and deputy general director quit their positions. Former Facebook Vietnam country director Le Diep Kieu Trang took over as general manager in April.

The Vietnam ride-haling market is seeing increasing competition between players, with local firms expanding to compete with Grab after Uber quit last year.

The ride-hailing market is forecast to reach $2 billion in 2025, according to a report last year by Google and Singapore investment firm Temasek.

Dong Nai completes FDI attraction target for whole year

In the first six month of this year, the southern Dong Nai province attracted 1.02 billion USD of foreign direct investment, or 102 percent of the target set for the whole year and 8.03 percent higher than the figure of the same period last year.

The provincial Statistics Office further revealed that among the FDI, 48 projects were new with a combined registered capital of 514 million USD, and 512 operational projects added 512.3 million USD to their existing capital.

Major new FDI projects include those from the Republic of Korea with capital amounting to 100 million USD.

Representatives of the provincial Department of Planning and Investment said the projects are those of high technology, environmentally friendly and suitable to the province’s investment attraction policy.

So far, Dong Nai province has attracted a total of 1,420 FDI projects with a combined capital of nearly 29.6 billion USD. Investors in the province are from 43 countries and territories, led by the Republic of Korea, Taiwan (china), and Japan.