Complicated procedures have been hindering the progress of real estate projects in major cities, insiders have claimed.

Vietnam Economic Times quoted comments by the Vietnam Real Estate Association as saying that the real estate market has been stagnant as localities have intensified the inspection of real estate projects and the control of credit flows into the sector has been tightened.

Nguyen Quoc Hiep, Chairman of the real estate company GP Invest, blamed administrative red tape and new regulations for the standstill facing the sector.

“We had completed procedures for our project in accordance with previous regulations, but our efforts were in vain as the Land Law 2014 accompanied by new rules came into force. The current regulations required for real estate projects are extremely challenging to firms,” Hiep claimed. He underpinned his view by preliminary statistics that Hanoi had only six commercial housing projects approved during the first half of 2019.

Nguyen Ngoc Thanh, Chairman of the Haiphong city Real Estate Association, complained that he had taken three years to finalize procedures in relation to adjustments to the planning of a project. While the dossiers were submitted to competent agencies, an official in charge of receiving such procedures was reportedly joining a refresher course and no one was assigned to assume the responsibility.

Capricious inspections of real estate projects have broken out following the official finished the training course. This has incidentally extended the time for adopting the adjustments.

There is no consistency of the laws and regulations related to real estate, subsequently deferring the implementation of investment procedures, Thanh noted.

He explained that the Law on Investment prescribes that in order to become the investor of a real estate project, firms must have the project okayed by competent agencies whilst investors must gain approval for the planning of their project if they want their project to be approved. As a result, a number of investors have finalized preparations for real estate projects but their planning has yet to be ratified due to the administrative overlaps.

Le Hoang Chau, Chairman of the HCM City Real Estate Association (HoREA) said there exist considerable overlaps between the Law on Urban Planning and the Law on Investment regarding the detailed planning and in-principle investment approval of real estate projects.

To overcome these barriers, HoREA called upon the HCM City People’s Committee to assign the Department of Planning and Architecture to receive and handle project documents on detailed planning with the 1/500 scale proposed by investors.

Meanwhile, the Department of Finance and the Department of Natural Resources and Environment should complete the process and administrative procedures related to calculating land use fees for commercial housing projects, in order to save time and increase State budget collection.

In fact, only three commercial housing projects were submitted by the HCM City Department of Construction to the municipal committee for granting investment permits during the first half of this year, representing 16 projects lower than the figure approved in the corresponding period last year, or an annual drop of 84.2 per cent.

The construction department has also sent a list of 10 new commercial housing projects to the municipal committee for approval, dropping by 46 projects or 82.2 per cent on year. Besides, only 24 valid housing projects have been allowed to make debut in the time ahead, plunging by 29.4 per cent on year.

More importantly, there were no affordable housing projects launched to the market during the second quarter of this year. In short, HCM City’s real estate market saw slumps in the first seven months of the year, causing many adverse impacts on other economic sectors.

A large number of real estate developers have been at a complete standstill while some are on the edge of bankruptcy, Chau stressed.

Nguyen Van Dinh, General Secretary of the Vietnam Association of Realtors (VARS), asserted that complicated procedures have been hindering the progress of launching new real restate projects while giving a threat to the balance of supply and demand.

Administrative red tape would also increase time and costs for the implementation of real estate projects, hence making negative impacts on investors’confidence.

Corporate bond an effective tool to raise capital

Bond issuance is becoming a popular channel for firms to raise capital for its efficiency and convenience.

In the first six months of 2019, listed companies on the Ho Chi Minh Stock Exchange (HOSE) raised more than VND19 trillion (US$812 million) via share issuance, up 17.2 per cent compared to 2018.

But this only met part of the capital demand as both listed and unlisted firms had to mobilise a total of VND90 trillion through bond issuance in the first six months, up 34 per cent compared to the same period last year.

Most of enterprises approved to list on the stock market wish to raise capital from share issuance to reduce the dependence on bank loans, but in fact they seem to still find it hard to mobilise long-term capital.

An Phat Securities Joint Stock Company (APG) in 2019 plans to increase its chartered capital from more than VND340 billion to VND1 trillion. Under the initial plan, the company will issue shares to pay 2018 dividends and issue shares to the public to raise capital.

However, prior to the general shareholders' meeting in 2019, the board of directors added a plan to issue VND100 billion of bonds in case the share issuance plan fails.

Statistics from the HOSE show that the amount of capital businesses listed on the bourse mobilised via share issuance in the first six months of 2019 recorded strong growth but still quite low in absolute value.

In 2017, listed companies on HOSE raised more than VND28 trillion through issuing shares. This figure plummeted to VND16.5 trillion in 2018 and rose to VND19.3 trillion in the first half of 2019.

In 2018, the capital enterprises raise from issuing both shares and bonds increased by 35.4 per cent compared to 2017, reaching VND64.9 trillion. However, this figure is small compared to the credit/GDP ratio of 2018 of 134 per cent.

The proportion of capital supply from the capital market to the economy this year increased significantly compared to 2017, but stood at only 14 per cent, which means that businesses still rely heavily on bank loans.

Notably, banks seem to prefer to purchase corporate bond for its flexible investment opportunities.

According to a deputy general director of a listed bank, commercial banks were key investors in the corporate bond market. Banks prefer to invest in corporate bonds because they can earn good profit with bond interest rate of 12-13 per cent per year.

This trend is expected to continue in the future as businesses will switch to the bond channel to call for capital from banks.

Businesses selling bonds to banks are similar to borrowing money from them, he said.

But compared to borrowing from banks, raising capital through bonds has some advantages such as no collateral is needed and firms can use the money without bank supervision.

“The majority of bond issuances are mostly private placement, with easier conditions and more simple documents compared to issuing shares, make it more convenient for businesses to quickly have capital,” he said.

Bond interest rate now stands at 13-14 per cent per year, therefore strongly attracts individual investors.

But according to the deputy general director, the enterprises will spend the mobilised money on their own wishes while sometimes not following the guidelines adopted by the general meeting of shareholders.

The process of using capital is less transparent, affecting the confidence of investors, he said.

KIS to sell covered warrants for four large-cap stocks

KIS Viet Nam Securities Co (KIS) will issue covered warrants that underline shares of four large-cap firms – steel maker Hoa Phat Group (HPG), consumer staple firm Masan Group Corporation (MSN), real estate-retail-tech giant Vingroup (VIC) and its retail arm Vincom Retail (VRE).

All four covered warrants will have a term of three months, with a conversion ratio of two to one for HPG and VRE and five to one for MSN and VIC.

The prices of the four covered warrants will be 30 per cent higher than the market price of the underlying stocks.

After the offering process, all of the covered warrants will be deposited at the Viet Nam Securities Depository Centre (VSD) by the issuing company. The non-distributed covered warrants will be held by KIS in its proprietary trading account and be freely traded. After that, covered warrant codes will be listed on the Ho Chi Minh Stock Exchange.

A covered warrant is a security that gives the holder the right to buy or sell an underlying asset at a specified price on or before a specified date.

Underlying assets can be a single stock, a basket of stocks, an index, a commodity or a currency. Covered warrants have been listed and traded on the Ho Chi Minh Stock Exchange since June 28.

The fourth securities product, after stocks, fund certificates, bonds and futures, is expected to provide investors with more options and draw foreign capital in listed companies as there is no foreign ownership limit on these products.

During the first one to two weeks of trading, covered warrants received a positive response from investors; however, its trading soon slowed down and liquidity dropped. Since the inception of covered warrants in Viet Nam, their total trading volume has reached more than 67.7 million, worth VND220.8 billion (US$9.4 million).

There are currently 16 covered warrant codes being traded on the stock market, underlying the stock codes of FPT Corporation (FPT), Hoa Phat Group (HPG), Military Bank (MBB), Mobile World Group (MWG), Phu Nhuan Jewellery (PNJ) and Vinamilk (VNM), with maturity of three to six months.

Most of the listed covered warrants have higher prices than when they were initially released.

For example, the covered warrants of Mobile World Group (MWG) are on an upswing. CMWG1901 issued by BIDV Securities Co (BSC) now fetches nearly four times its issuing price. CMWG1902 issued by VNDirect Securities Co (VNDS) is priced 234 per cent higher. The increases for CMWG1903 issued by HCM City Securities (HSC) and CMWG1904 issued by SSI Securities (SSI) are 128 per cent and 150 per cent, respectively.

KIS is one of eight securities companies qualified to issue covered warrants, along with SSI Securities Inc (SSI), HCM City Securities Corp (HSC) and Viet Capital Securities Corp (VCSC).

VN firms must act fast on digital transformation or be left behind: FPT executive

Vietnamese businesses need to consider digital transformation soon in order to not be left behind in the ongoing industrial revolution, Phan Thanh Son, chief business development officer of FPT Information System, told Viet Nam News.

On the sidelines of a forum on August 17, he said: “Digital transformation is no longer a matter of should or should not, but a must; businesses that do not partake in this may not survive in a new digital economy.

“Businesses have to adopt it; it is only a matter of when and how quickly.”

The old economy was slowly becoming more and more “inappropriate,” while new economy models such as Uber and Grab were being created in place of old models.

Adopting digital transformation helped businesses improve the experience of customers, who were demanding more and more from them.

Workers of the future would also come from a digital age, with different mindsets and expectations, and businesses had to adapt so that they would have room to be innovative and contribute.

Businesses could also create or partake in new business models and operate more efficiently.

Viet Nam adopted new technologies relatively quicker than other countries, especially thanks to its youths and its telecommunication infrastructure which had seen great improvements.

Many sectors such as agriculture were adopting digital technologies and improving productivity.

But some were doing it at a slow rate, still not fully aware of the danger of being left behind as a result.

Neither were they fully aware of the opportunities it brought.

There had not been enough investment in creating a workforce that could support the digital transformation; it had only starting recently.

Many universities lacked streams such as AI and data science.

Authorities were aware of the importance of digital transformation and making efforts to raise awareness of this and programmes to push for it.

Businesses were now more aware of digital transformation, and while some remained sceptical, others were seeing the real challenges and beginning to take actions.

Business leaders were looking into it.

Each business should “think big, do smart and scale fast” when it came to actions and digital transformation programmes.

Aquaculture Viet Nam 2019 to be held in Can Tho

An international exhibition and conference on Viet Nam’s aquaculture sector will take place in the Cuu Long (Mekong) Delta City of Can Tho from October 16-18.

The second edition of Aquaculture Viet Nam will introduce new technology and services for the fisheries sector, the event's organisers said.

The event will also present a fisheries value chain with comprehensive coverage from food, varieties, disease prevention, processing, market, food safety and sustainable aquatic farming, they said.

Several conferences will be held during the expo with the participation of experts to give firms the chance to introduce their products and services to customers.

Run by UBM Asia Ltd, the Viet Nam Fisheries Society (VINAFIS) and the International Collaborating Centre for Aquaculture and Fisheries Sustainability (ICAFIS), the event is expected to draw more than 6,000 visitors.

According to the VINAFIS, Viet Nam's aquaculture output reached 1.92 million tonnes in the first half of this year, up 7 per cent year on year. Notably, shrimp production hit nearly 290,000 tonnes, up 9 per cent year-on-year and fulfilling 34 per cent of the yearly target. Meanwhile, tra fish output was 684,000 tonnes, 45 per cent of the goal for the year.

Fisheries exports in the period saw a modest yearly increase of 1 per cent to US$4 billion. Export revenue of shrimps was $1.43 billion, followed by tra fish ($991 million) and tuna ($380 million).

The country’s seaculture area is set to reach 270,000ha with expected marine production of 750,000 tonnes by 2020.

Hanoi Railway launches new “home-to-home” shipping serv

A new cargo transport service under the method of "from home to home" has been launched by the Hanoi Railway Transport Joint Stock Company (HARACO) across the Vietnam railway network.

The company announced on August 17 that its new shipping service, launched at www.harapost.vn, aims to diversify services to meet customer requirements.

Accordingly, the company receives orders from customers to flexibly transport multiple types of goods, from the smallest package to big shipments, to customers' requested addresses in the fastest shipping times and in a safe manner.

Customers only need to visit the website www.harapost.vn to book online shipping or make shipping orders at the registration desk dedicated to freight transport through the harapost system at relevant stations.

In addition, the unit also launched a cash on delivery (COD) service to collect money from the buyers at the time of delivery on behalf of the sellers at a fee equal to 1% of the total collected amount.

Rising demands for realty with long-term ownership

Local demand for real estate products with long-term ownership exceeds supply as most of Vietnamese people prefer this kind of deal, experts said during a conference on Friday.

During the conference titled ‘Real estate ownership trend: International experience and Vietnamese practice’ held by the Vietnam Real Estate Association in HCM City, Duong Thuy Dung, CBRE Vietnam’s Senior Director, said besides land with long-term ownership, apartments, villas and shophouses are preferred by domestic home buyers and investors in recent years.

Apartments, which have long-term ownership, have been offered for sale most due to high demand as local real estate buyers and investors prefer real estate products with long-term ownership, Dung said.

The total numbers of the apartments offered for sale in the country’s two largest markets of HCM City and Ha Noi rose from 15,000 in 2008 to 63,000 last year while the number of apartments sold reached 55,000 from 8,000 in 2008.

Until now, home buyers and investors still prefer long-term ownership. Meanwhile, the number of the apartments in HCM City and Ha Noi is only roughly 260,000, compared with the population of more than 23 million people.

"The number of the apartments is too modest compared to the demand while the supply is also too low," Dung said, adding there is huge room for the development of the realty segment.

According to Dung, in the first six months of 2019, the number of real estate products with long-term ownership offered for sale dropped significantly compared to the same period last year giving investors fewer choices.

Due to the reduction, substitute products, such as condotel, officetel and resort villas, that have an ownership time limit, have begun to receive attention from real estate investors. Buyers of the substitute products are mainly for investment purpose. In Nha Trang and Da Nang, for example, there are some 16,000 substitute products.

According to Dung, more than 70 out of 220 countries in the world regulate apartments for sale having an ownership time limit. The limit in Singapore is 99 years and the Philippines, 50 years.

In Viet Nam, many projects have a long-term ownership. However, some others, even in some key projects, the ownership time limit is 50 years.

For resort real estate, the ownership time limit in Vietnam is 50-70 years, compared with 30 years in Thailand.

To encourage buyers of the substitute products with an ownership time limit, Nguyen Thi Thanh Huong, Dai Phuc Land’s general director, said developers should pledge profit return rates to make it attractive to buyers.

However, as some developers failed to meet the commitments in profit rates last year, investors are now also interested in the capacity of investors and operators, Nguyen Hoang, Research & Development Director of DKRA Vietnam Company.

An Giang attracting less investment this year

The Cuu Long (Mekong) Delta province of An Giang has witnessed a reduction in the number of new investment projects and the amount of newly registered capital since the beginning of this year, local authorities have said.

So far this year, the province has attracted 44 new projects with total registered capital of more than VND5 trillion (US$215 million), down by five projects and more than VND10.2 trillion ($44 million) in value from the same period last year.

Le Van Nung, vice chairman of the provincial People’s Committee, called for support from the Government, ministries and agencies to make An Giang more attractive to investors.

Nung said his province will suggest authorities offer support in infrastructure for transportation and logistics services to contribute to the economic development of the locality and the Mekong Delta.

The official added that An Giang will connect with international organisations and foreign trade and investment counselors, especially from promising markets such as Australia, New Zealand, South Korea, Singapore, Israel, the US and several European countries, in an effort to lure more foreign direct investment.

According to the provincial Department of Planning and Investment, the province will hold working trips to South Korea to boost investment in the hi-tech and agro-forestry processing sectors as well as seek opportunities to sell rice, aquatic products and fruits during the rest of the year.

An Giang will also partner with the National Tourism Advisory Council to hold a seminar on developing tourism and discuss the best way to market the province as a destination for visitors.

The province will step up administrative reforms, improve its investment climate and enhance its competitiveness to attract more projects.

Director of the provincial Department of Planning and Investment Le Van Phuoc said the province would focus on building a level playing field for both Vietnamese and foreign investors. They will receive preferential taxes and land lease and credit support, among other incentives.

The provincial People’s Committee has maintained its weekly “business coffee break” model to meet with local enterprises, helping to remove bottlenecks in their operations.

An Giang is now calling for investment in 60 projects, with priority given to sectors such as hi-tech agriculture, eco-tourism, resort tourism, the processing industry and the support industry.

Mekong, southeast regions ask for quick release of public funds for infrastructure

Provinces and cities in the Cuu Long (Mekong) Delta and south-eastern region and experts have called on the Government to prioritise investment to develop these regions’ infrastructure and foster development based on their inherent advantages.

At a conference titled “Building a plan for the socio-economic development and public investment in 2020 in the Southeast and Mekong Delta region” held in Vinh Long Province on Wednesday, delegates said public investments in the two regions remain slow though there has been huge and urgent demand for funds.

This is one of the reasons for their development to lag behind their potential, they said.

Tran Duy Dong, head of the Ministry of Planning and Investment’s department of local and territorial economy, said the rate of disbursement of funds for public projects in the Mekong Delta in the year to July 30 was 38.56 per cent, higher than the country’s average of 36.11 per cent.

The rate for the southern region, 25.35 per cent, is the lowest among the country’s six regions, he said.

The highest rate in some places in the two regions is only 40 per cent whereas in some other regions it is 60 per cent, he said.

This pressing problem should be handled as soon as possible, he added.

Deputy Minister of Planning and Investment Vo Thanh Thong said that to promote public investment and socio-economic development in the two regions, ministries and localities need to develop clear plans for fund allocation and specify priority public projects requiring funds by 2020 in line with the 2016-20 public investment plan approved by the National Assembly.

Vice Chairman of the Vinh Long People's Committee Lu Quang Ngoi said the Government has incentives to support agriculture but businesses find it difficult to access them.

He urged the Government to review and amend the incentive policies to make them more practical and appropriate to each region.

Le Quang Manh, chairman of the Can Tho People’s Committee, said though the Government has issued Resolution No. 120/NQ-CP on the sustainable development of the Mekong River Delta, its implementation remains difficult due to a lack of mechanisms and specific policies for the region.

The ministry should soon advise the Government to create a specific policy for infrastructure development, especially for transport infrastructure, in the Mekong Delta, he said.

Thong said the south-eastern region has underlined its status as the country’s economic spearhead by accounting for 45 per cent of the country's GDP.

The Mekong Delta plays a key role in ensuring national food security, accounting for 50 per cent of food production, nearly 70 per cent of seafood exports, 90 per cent of rice exports, and 18.7 per cent of the country’s GDP, he said.

With their respective strengths, the two regions should strengthen their links to develop together, he said.

Deputy Minister of Planning and Investment Vu Van Trung hailed the contribution made by the south-eastern and Mekong Delta regions to the country's economic growth.

His ministry had received feedback from localities at the conference and would factor it in when formulating criteria for allocating funds, he said.

It would also co-ordinate with relevant ministries and agencies to resolve difficulties faced by localities, he promised.

Tay Ninh to get safe dairy cow breeding area

The Department of Animal Health, under the Ministry of Agriculture and Rural Development (MARD), Vietnam Dairy Products Joint Stock Company (Vinamilk) and the provincial Department of Agriculture and Rural Development on Wednesday agreed to build the area over the next three years.

Tran Van Chien, vice chairman of Tay Ninh People’s Committee, said the move aims to prevent diseases, ensure sustainable livestock development, improve product value and provide safe dairy products for domestic consumption and export.

The province has a total 13,353 dairy cows, with the two key breeding areas of Ben Cau District (with 8,000 cows of Vinamilk farm) and Trang Bang District (5,300 cows) producing 29,137 tonnes of milk per year.

Speaking at the deal signing ceremony, Vinamilk’s CEO Nguyen Quoc Khanh said Vinamilk wants to work with localities and State agencies in building safe material areas according to international standards to export Vietnamese dairy products around the world.

Every year, Vinamilk will take samples of toxic residue monitoring under the national programme on monitoring of toxic residues in milk and milk products developed by the Department of Animal Health and submit them to MARD for approval.

Tay Ninh Department of Agriculture and Rural Development is responsible for advising the Provincial People's Committee to set up a steering committee to develop a chain of safe milk production for export; direct professional agencies and local authorities to organise vaccination and monitoring of dairy herd disease in the buffer zone with a radius of 10km around Vinamilk's farm chain according to the technical guidance of the Animal Health Department.

The Department of Animal Health will guide enterprises and localities to organise the production of safe, disease-free milk to meet the standards of the World Veterinary Organisation and the requirements of importing countries.

Kien Giang vows to provide best conditions for investors

The Cuu Long (Mekong) Delta Province of Kien Giang has pledged to further improve its competitiveness and investment climate, making it easy for investors to do business, Secretary of the provincial Party Committee, Nguyen Thanh Nghi, said.

It would also continue to ensure there is a supply of human resources and services to better meet investors’ needs, he said.

It aims to create a dynamic, creative and efficient business environment for investors as it sees their success as its own, he said.

Of the 13 cities and provinces in the Mekong Delta, Kien Giang has the largest area and second biggest population.

As the western gateway to the region and with the waters of the Gulf of Thailand lapping its shores, the province encompasses a vast sea area of over 63,000 square kilometres. It also shares a 58km border with Cambodia, has the Ha Tien international border gate and national border gate and two airports besides pristine forests, mountains and more than 100 small and large islands.

It is the country’s largest producer of many agricultural and fisheries items such as rice and shrimp and practises many advanced farming models.

Phu Quoc, aka Pearl Island, ranks among the top tourist destinations in Asia.

The province achieved rapid economic growth, averaging 7.17 per cent, in the 2016-18 period. The number of tourists grew annually at over 20 per cent, and tourism revenues surged 40 per cent.

Pham Vu Hong, chairman of the province People’s Committee, said Kien Giang’s development in the past was not commensurate with its advantages.

A lot of potential has not been tapped, including in agro-forestry and coastal aquaculture in Giang Thanh, Kien Luong, Hon Dat, and U Minh Thuong; in marine economic development, especially industrial aquaculture; in industrial development, especially processing associated with local raw materials; in eco-tourism and renewable energy development; and in urban and coastal housing development.

“Besides Phu Quoc, we have three more key tourism areas with plenty of potential: Ha Tien - Kien Luong (with the Ba Lua Archipelago and Tien Hai Archipelago), Rach Gia - Kien Hai (with Hon Tre, Lai Son and Nam Du islands) and the U Minh Thuong area with the U Minh Thuong National Park.

“We are aware that to enable Kien Giang to become a dynamic and developing province with prosperity and sustainable development, it must necessarily stimulate and exploit effectively and evenly the province’s potential and strengths based on both internal and external resources.

“We also understand that to mobilise resources from outside, there is no better way than to greatly improve the business and investment environment, remove bottlenecks in administrative procedures and complete the legal framework.”

Therefore, in the past few years, the province has put more effort into planning, drawing up preferential policies for investors and reforming administrative procedures.

In addition to the existing traffic infrastructure, new projects such as National Highway 80 connecting Vam Cong, Hon Chong seaport in Kien Luong District and the Duong Dong international seaport, once completed, are expected to help the province attract more investment, he said.

The province recently issued licences to 20 local and foreign projects with a combined investment of VND43.35 trillion (US$1.86 billion) and signed memorandums of understanding with a number of businesses for feasibility studies for 36 others worth over VND150 trillion ($6.46 billion).

The projects are in renewable energy, waste and wastewater treatment, hi-tech agriculture, logistics and tourism property.

Prime Minister Nguyen Xuan Phuc has hailed the province’s efforts to attract investment, noting that in terms of the quality of investment it is one of the top localities nation-wide.

He urged the province to capitalise on its comparative natural advantages and sea-oriented economy and promote its unique agricultural resources and unique and world-class tropical tourism to become one of the most dynamic, innovative and wealthy provinces in the country.

With its geographic advantages, Phuc said, “Kien Giang’s economy can develop based on three pillars: high-quality agriculture adapted to climate change, clean fish farming and processing targeting the high-end market segment and eco-tourism of international standards.”

The marine economy would be a key growth driver along with the border economy and the breakthrough in the development of Phu Quoc, he said.

“With the unique position of Phu Quoc, we need to have a vision to turn it into a world-class resort tourism centre.”

However, in the process of planning for the development of Kien Giang in general and Phu Quoc in particular, it is necessary to ensure the quality of the land, water and air and not destroy the environment and nature for short-term benefit, he warned.

The Government would help the province achieve its socio-economic targets and guarantee the legal rights of businesses and investors in the province are protected, he promised.

Gov’t wants tourism source markets restructured

The Government has ordered the Ministry of Culture, Sports and Tourism to seek ways to restructure tourism source markets to ensure the sustainable development of the sector.

The imbalance in sources of tourists may affect the sector’s sustainable development. Specifically, visitors from Asian countries have recently accounted for more than three-quarters of the country’s total international tourists. Chinese and South Korean guests have made up a large proportion of tourist numbers.

Last year, these two markets accounted for up to 54.5% of a total of nearly 15.5 million foreign tourists. The figure was 54% in the first half of this year.

The situation is more serious in certain localities, such as Khanh Hoa Province. According to the provincial Department of Tourism, Khanh Hoa welcomed more than 1.7 million international tourists in the first half of 2019. Of the total, Chinese visitors made up over 80.1%, at 1.3 million.

The Government also asked the sector to accelerate tourism promotion and enhance the management of tourist destinations and zero-dong tours to prevent tax evasion.

Despite the sector’s efforts, zero-dollar tours remain in place. The Khanh Hoa government has directed the competent agencies to crack down on these tours to create a healthy tourism environment.

According to the Ministry of Planning and Investment, low-cost tours have been popular in Quang Ninh, Danang and Khanh Hoa and have been mainly offered to tourists from China, South Korea and the ASEAN.

Work on Dien Bien Phu Airport expansion project likely to start next year

Airports Corporation of Vietnam (ACV) has secured capital to start work on the Dien Bien Phu Airport expansion project in the northern mountainous province of Dien Bien at the end of next year, according to the Ministry of Transport.

The Department of Planning and Investment under the ministry reported that the current Dien Bien Phu Airport has only one runway which was put into operation in 1994; an apron providing parking space for three aircraft; and a passenger terminal, which was built in 2004 and has an annual capacity of 300,000 passengers.

Due to the short runway, the airport can only receive small aircraft, such as the ATR72.

At a meeting with ACV, Minister of Transport Nguyen Van The asked the company to draw up a detailed action plan to execute the project and complete its feasibility report in the first quarter of next year.

Earlier, air carrier Vietjet had sought approval from the Dien Bien provincial government and the Ministry of Transport to invest in a project to expand Dien Bien Phu Airport.

In particular, the carrier proposed constructing a 16,000-square-meter passenger terminal with an annual capacity of two million passengers, a runway 2.4 kilometers long and 45 meters wide and a 21,000-square-meter apron that can accommodate A320 and B737 aircraft.

The total investment amounts to more than VND4.4 trillion. Of this, the terminal construction will require more than VND682 billion, the runway and the apron will need VND806 billion, and some VND1.1 trillion has been set aside for site clearance.

Vietjet proposed sourcing over VND2.6 trillion from the State budget and contributing nearly VND1.86 trillion of its own equity. However, its proposal has yet to be approved.

According to the Ministry of Transport’s Decision 2501/2017 approving the revised plan for Dien Bien Phu Airport, the airport will serve both civil and military purposes. By 2020, the airport is expected to have an annual capacity of 300,000 passengers and 500 tons of cargo and an apron that can accommodate three A320 and A321 aircraft.

By 2030, the capacity will be increased to two million passengers and 10,000 tons of cargo, and the apron can provide parking for six aircraft.

Light box requirement for e-charter cars likely to be removed

The regulation on installing rooftop light boxes for e-charter cars with fewer than nine seats has been lifted in the latest draft of a Government decree on transport business, according to Minister of Transport Nguyen Van The.

Minister The has written to the prime minister about the completion of a draft Government decree on transport business and its conditions, replacing Decree No.86/2014/ND-CP.

Having taken into account the guidance by Prime Minister Nguyen Xuan Phuc and Deputy Prime Minister Trinh Dinh Dung, the transport ministry modified the 11th draft of the decree.

In particular, the ministry removed Point c, Clause 1, Article 7, which stipulates that e-charter automobiles with fewer than nine seats must install rooftop light boxes measuring 12 centimeters x 30 centimeters and featuring the words “e-charter car.”

Instead, the ministry amended the draft decree’s Point b, Clause 1, Article 7 regulating that e-charter cars must have the given phrase on a sticker placed on their front and rear windshields. The sticker must be reflective and measure at least 6 centimeters x 20 centimeters.

Point b was modified to align with the removal of the need to install rooftop light boxes. Meanwhile, regulations on materials and the size of the sticker were added to the decree to ensure that business vehicles can be easily identified, the transport minister said.

Regulations on condo conferences may be relaxed

The Ministry of Construction’s draft circular on the management of apartment buildings stipulates that apartment building conferences are deemed legitimate with the presence of 50% of apartment owners instead of 75% as currently regulated.

The draft circular also specifies conferences for condo buildings must be held within 12 months upon the date of the buildings being put into service and after at least 50 apartments have been handed over to buyers.

Within seven days of the date chosen for organizing the conference, if fewer than 50 apartment owners attend the event, investors in or owners of the condo buildings may propose the ward-level authorities organize apartment building conferences in line with the draft circular.

Many condo buildings have failed to organize apartment building conferences due to the insufficient participation. Article 13 of the Ministry of Construction’s Circular 02/2016 stipulates that condo building conferences must be held only when at least 75% of buyers who have taken possession of their apartments can attend the conference.

However, most buyers are purchasing apartments for lease rather than to live in them and lessees cannot attend condo building conferences, so participation numbers cannot be met.

Regarding decisions made by apartment building management boards, the draft circular regulates that at least 50% of the board members, instead of 75% as currently regulated, must agree for a decision to take effect.

Besides this, 75% of the board’s members, instead of 100%, can decide on maintenance spending for apartment buildings.

Expenses for the organization of conferences are financed by contributions from apartment users and owners.

Experts discuss digital economy at int’l business forum

Business leaders, policy makers, economic experts and academics discussed how Vietnam’s economy could contribute to and reap benefits from the global digital economy at the annual International Business Forum organized by RMIT Vietnam’s School of Business & Management last week.

Opening the event, Associate Professor Victor Kane, RMIT Asia Graduate Centre Head of Department, noted that Vietnamese firms have become more active in the digital economy.

“The global digital economy is estimated to be worth US$11.5 trillion already and will continue to grow in the future,” Kane remarked. “According to the World Bank, Vietnam has already achieved success with ride-hailing services, ecommerce platforms and accommodation platforms. They challenge existing retail systems and fintech and payment solution companies. Many of these firms are immediately connecting with customers and suppliers around the world.”

Dr. Nguyen Quang Trung at RMIT Vietnam described a born-global firm as “a venture launched to exploit a global niche from the first day of its operations.”

According to former Minister of Science and Technology Nguyen Quan, even though there are still many challenges involved in developing a startup business, the startup ecosystem within Vietnam has improved due to the prompt actions of the government and proactive approaches of businesses.

“The National Innovation Center is being developed and is expected to be the nucleus for promoting the country’s economic development based on innovation, science and technology in the context of the rapidly changing Fourth Industrial Revolution,” Quan said. “It will prioritize work on smart factories, digital content, network security, smart cities and environmental technologies.”

As a former CEO of many technology companies in Vietnam including Sony Ericsson Vietnam, Yahoo Vietnam and Microsoft Vietnam, Vice President of Cloud Services at VNG Corporation Vu Minh Tri shared five common factors of companies that are successful on a global scale: they can address global problems, scale quickly, grow with the ecosystem, innovate and pick the best solutions.

He used Kodak’s story as an example of industry disruption through innovation and an Instagram case study to encourage startups to innovate.

For those who want to start a born-global company, Trung of RMIT Vietnam provided a set of criteria extracted from his research “Born Global: Do you have what it takes?” which was conducted with his colleague.

These include a passion for adventure, an international outlook and international entrepreneurial orientation, a differentiation strategy, good health, comfort with risks, people skills, a willingness to embrace failure, an ability to leverage advanced information and communications technology, the right formula for corporate governance and decision-making power.

Established in 2017, RMIT Vietnam’s annual International Business Forum brings stakeholders in the business and economic development industries together to create a space for vital discussions of economic and business themes in Vietnam. It also allows for interindustry and interdisciplinary networking.

A similar event will be held in Hanoi on August 14.

Site for Long Thanh airport project must be available next year: official

The site for the first phase of the Long Thanh international airport project in the southern province of Dong Nai must be handed over to Airports Corporation of Vietnam between June and August next year, Deputy Minister of Transport Le Anh Tuan said.

At a recent meeting with the Dong Nai government on the site clearance progress of the big-ticket project, Tuan said the ministry would coordinate with the local authorities to speed up site clearance and develop traffic, water and electricity systems, Lao Dong newspaper reported.

According to the Dong Nai Department of Natural Resources and Environment, up to 358 out of 364 hectares of rubber farms, where two resettlement areas will be built, are under the management of Dong Nai Rubber Corporation.

By July 30, the corporation had completed cutting down the rubber trees and had cleared land. The provincial Land Fund Development Center has compensated for half the value of Dong Nai Rubber Corporation’s rubber farm land in line with the provincial government’s approval.

Dong Nai Rubber Corporation will hand over the sites to develop the two resettlement areas this month.

Dong Nai Vice Chairman Tran Van Vinh said that the province is committed to developing infrastructure in the resettlement areas this year so that residents can move there next year. The province will also complete the compensation for rubber farms this year.