Local businesses need to know clearly about the CE and FDA standards for exporting goods to the EU and US markets, according to experts at a seminar on CE and FDA standards held in Hanoi on May 26.

They should avoid the situation that they have sent finished goods to the EU and US markets to get CE and FDA certificates for exporting to those markets, the experts said. If their products could not receive CE and FDA certificates, they would have wasted resources, including capital.

"Vietnamese businesses can take advantage of opportunities to boost exports to European and American markets, if they actively meet the requirements of these markets," Tran Thanh Hai, Deputy Director of the Ministry of Industry and Trade (MoIT)’s Import and Export Department, said at the seminar organised by the department and the Vietnam Textile and Garment Association (Vitas).

At the seminar, the experts answered local enterprises’ questions relating to the CE and FDA standards and suggested solutions on implementing those standards. The CE certificate requests export products to meet the requirements for safety, health and environmental protection while the US Food and Drug Administration (FDA) regulations include requirements for the safety of products exported to the US.

This is one of many events supporting domestic enterprises organised by the MoIT to get technical standard certificates for export goods, especially those relating to COVID-19 pandemic prevention such as face masks.

Hai said at present, many local businesses are facing difficulties in certifying to reach standards and quality, especially processes on completing procedures for CE and FDA certifications.

The businesses often lack information about those certifications so they must get the certifications via brokers. That would risk the certificates made by the brokers are not acceptable in the EU and US markets. Meanwhile, in the future, local enterprises must have CE and FDA certificates for their products to be exported to the EU and US markets.

Duong Phong Hien, chief representative of EUROFINS Group in Hanoi, said Vietnam should complete the system of standards and regulations to control and improve quality of goods, especially face masks and protective gear. That would create good conditions to promote competitiveness of Vietnamese textile and apparel products on the global market.

To produce products reaching CE and FDA standards, Vietnamese enterprises must have input materials meeting those standards, Nguyen Thi Minh Tam, chief representative of British Standard Institute (BSI) Vietnam Co, Ltd in Hanoi said.

The EU and US markets have often had high technical requirements and high product quality, said Tam. The biggest difficulty of Vietnamese enterprises is that when sending their products to these two markets for getting the certifications, there are often many uncertified products.

The Vietnam - European Union Free Trade Agreement (EVFTA) has been signed and is waiting for approval of Vietnam’s National Assembly. To take advantage of the FTA, the local businesses must know clearly about the EU market quality standards, including CE marking standards./.

EVFTA disseminated among businesses

The Vietnam Chamber of Commerce and Industry (VCCI) said on May 27 it is actively promoting the dissemination of the EU-Vietnam Free Trade Agreement (EVFTA) among the country’s business community, helping them grasp opportunities and access incentives when the deal is implemented.

Negotiations began and ended amid the rapid development of economic, trade, and investment relations between Vietnam and the EU. The deal is expected to have a positive impact on both, with tariffs on nearly 100 percent of Vietnam’s exports to the EU to be eliminated after a short period of time.

Among all its FTAs, the EVFTA has the highest level of commitment from a partner to Vietnam. Many experts believed it will create a huge boost for the country’s exports, helping it diversify markets and export items.

VCCI said it will coordinate with the Ministry of Industry and Trade, the Vietnam International Arbitration Center, the European Chamber of Commerce in Vietnam (Eurocham), the General Department of Vietnam Customs, and the Central Institute for Economic Management to host workshops entitled “International trade under the EVFTA - Incentives and opportunities Vietnamese businesses need to take advantage of”.

Slated for June 17 in Hanoi and June 19 in HCM City, the workshops will provide the latest information on Government policies encouraging economic recovery post-COVID-19 as well as on prospects in Europe for certain Vietnamese goods, disease containment and trade exchanges between European countries, and legal issues in international trade./.

Singaporean firms hold great potential to enter Chinese market: experts

Enormous business opportunities lie ahead for Singapore companies to venture into China despite the economic fall-out from COVID-19, said Singaporean economists and business leaders during a recent webinar.

The "Beyond COVID-19: Mitigating the Impacts and Preparing for New Business Opportunities in China" webinar was organised by the Singapore Business Federation.

Potential sectors in the Chinese market include the food technology, transport, logistics and medical services, said the panelists.

Amid the restructuring of the global supply chain, Singapore will be an attractive destination for supply chains to relocate to, said Alex Capri, visiting senior fellow at the National University of Singapore.

For instance, it has a high-tech semiconductor sector, is building its own 5G infrastructure as well as new capabilities in artificial intelligence and drones, he explained.

On emerging business opportunities in China, Chairman of Singaporean tech company CrimsonLogic Eugene Wong said Singapore companies can look at sectors like technology, seek to raise the efficiency of China's transport and logistics industry, work with Chinese companies to improve healthcare services and develop food technology solutions for sustainability, and offer e-financing services.

Singapore firms should also tap on intergovernmental projects such as the Chongqing Connectivity Initiative, and work with more private sector enterprises instead of state-owned enterprises, he added./.

Cambodia builds giant reservoir in hope of boosting agro-production

Cambodia’s Preah Vihear province is building a reservoir at a cost of over 100 million USD to supply water for agricultural rice crops during the dry season, the Khmer Times reported.

Speaking at a press conference in Phnom Penh on May 26, Preah Vihear’s Deputy Governor Kousom Bunsoeut said Cambodian Prime Minister Hun Sen had approved a budget of about 100 USD million for the construction of the reservoir.

Construction of the dam started in late 2019 and is expected to conclude in 2022.  

Once it is completed, there will be enough water for about 40,000 ha of crops during the dry season.

Having the government’s support to develop the rural area will definitely improve the livelihood of the people and reduce the number of Cambodians becoming migrant workers, the official said./.

Indonesia to resume tourism, trade activities

The Indonesian government is preparing for the “new normal” scenario for some sectors such as tourism, trade and transportation in the context of the ongoing COVID-19, Coordinating Minister for Economic Affairs Airlangga Hartarto said on May 27.

Business activities in the field of tourism will see many changes such as the number of visitors and opening hours.

Regarding trade, Indonesia will have detailed regulations on activities of traditional markets, especially those seriously affected by the pandemic.

The country is also preparing a scenario for other industries such as mining, crop production and agriculture to resume operations, according to Airlangga.

Some localities have returned to the “new normal” status like Aceh, Riau, North Kalimantan, Maluku, Jambi, and Jakarta.

Large-scale social distancing restrictions are due to expire on June 4 and West Java on May 29./.

Cambodia considers more measures to support firms affected by COVID-19

The Cambodian government has introduced the fourth round of measures to help the private sector, businesses, and workers who are severely affected by the COVID-19 pandemic.

The new measures are aimed at relieving the burden and improving the living standards of people with social assistance.

They take into account the crisis could end and economic activities will return to normal in the near future. At that time, the measures will focus on helping businesses recover and contribute to boosting the economy.

The so-called Round 4 Measures will cover many sectors including aviation, manufacturing, garment industry, banking and finance, agriculture, medical work, among others.

The Ministry of Economy and Finance in collaboration with the National Bank of Cambodia will seek the possibility to reduce and adjust terms and conditions to increase the cash flow in the banking sector./.

Vietnam Airlines launches Thanh Hoa - Buon Ma Thuot flights

National flag carrier Vietnam Airlines opened its Thanh Hoa - Buon Ma Thuot route on May 27, connecting the rich tourism area of the north-central coast with the largest city in the Central Highlands.

It welcomed 141 passengers on the first flight from Buon Ma Thuot to Thanh Hoa and presented gifts to all.

Flight VN1630 departing from Buon Ma Thuot landed at Tho Xuan Airport in Thanh Hoa at 10am, with the return leg departing at 11am.

The airline will operate three return flights a week on the route, on Wednesday, Friday, and Sunday.

This is Vietnam Airlines’ second route to Thanh Hoa and fifth to Buon Ma Thuot.

Thanh Hoa is known as a “land of masterpieces”, boasting a rich history and famous scenic spots such as Sam Son Beach, Phu Luong nature reserve, Cam Luong holy fish stream, and relics from the Ho Dynasty. Buon Ma Thuot, meanwhile, attracts tourists with charming wilderness and majestic mountains that are typical of the region./.

Vietnam, US promote footwear trade post-pandemic

An interactive video conference on “Promoting Vietnam - US Trade in Footwear Post COVID-19” took place in Washington DC on May 27 (US time) to connect Vietnamese producers and American distributors and retailers.

The conference was co-hosted by the Ministry of Industry and Trade’s Vietnam Trade Promotion Agency (Vietrade), the Vietnam Trade Office in the US in partnership with Footwear Distributors and Retailers of America (FDRA), the Vietnam Leather, Footwear and Handbag Association (Lefaso), and USAID Linkages for Small and Medium Enterprises (LinkSME), to boost the export of footwear - one of Vietnam’s main foreign currency earners - to the US.

It was the first video conference ever held bringing Vietnam’s footwear sector and a foreign market together.

As both countries gradually reopen their economies, the conference and its business matching session provided a platform for Vietnamese firms and US importers to learn about each other’s needs and capacity, seek deals, and promote trade in the “new normal”.

The event presented Vietnamese firms with the latest updates on the US’s footwear market and how it is being affected by COVID-19. US experts also advised Vietnamese footwear makers on specific market segments they should focus on and how to improve competitiveness and properly access the US market.

The conference also offered Vietnamese companies a chance to discuss the challenges facing them in exporting footwear to the US.

Vietnam exported 18.3 billion USD worth of footwear products in total last year, up 12.8 percent against 2018. The US remained Vietnam’s largest footwear market, buying 6.65 billion USD, a year-on-year increase of 14.2 percent.

Shipments of footwear to the US grew 10 percent year-on-year to 1.56 billion USD in the first quarter of this year./.

Japan’s JUTEC Corp. to enter local real estate market

Japanese building product distributor JUTEC Holdings Corporation will team up with a Vietnamese partner to establish a housing services joint venture in Vietnam.

The company, in which JUTEC will hold 50 percent, will offer apartment management and operations services following Japanese standards, to bring the best experience possible to foreigners working and living in Vietnam.

It will also import modern Japanese construction materials for distribution in the Vietnamese market.

The joint venture will cater to demand for apartments for lease, targeting foreign experts, and promote new building materials in Vietnam.

Founded in 1923, JUTEC had 778 employees as of April, with capital of 850 million JPY (7.9 million USD).

It arrived in Vietnam in 2015 via opening a representative office to study the local market./.

Thailand: Committee to be formed to weigh up CPTPP membership

Thailand’s cabinet has agreed to set up a committee to consider whether the country should sign up to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), amid widespread concerns about its harmful effects on the agriculture industry.

A standing panel of the lower house will seek public opinion about the CPTPP membership, deputy government spokeswoman Rachada Dhnadirek told a news briefing.

Its conclusions will be useful for the cabinet to decide on CPTPP membership, she said, adding that Deputy Prime Minister and Commerce Minister Jurin Laksanawisit agreed with forming the committee and the government wants to get it done within 30 days.

Jurin discussed the CPTPP with other ministers on the sidelines of the cabinet meeting on May 19. He was asked by Prime Minister Prayut Chan-o-cha to present details of the CPTPP proposal at the informal discussion so the cabinet could begin preparing for possible negotiations expected in August.

If Thailand agrees to take part in talks at the upcoming meeting of the CPTPP founders in August, the government will have about two months left to settle the matter through the cabinet and the lower house.

The Commerce Ministry previously said the membership could lift economic growth to help offset the negative impact of the coronavirus outbreak.

However, the cabinet shelved a decision on membership last month following stiff opposition by politicians, civil society groups and prominent social figures who said it would hurt the economy, particularly the agricultural and healthcare sectors.

A study by Bolliger & Company Thailand, which was hired by the department, found participation in the CPTPP would boost Thailand's GDP by 0.12 percentage points in revenue a year.

The CPTPP is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam./.

Bac Giang to focus on simplifying admin procedures

The northern province of Bac Giang will continue stepping up its administrative reform efforts between now and the end of the year to better serve the public, its Department of Home Affairs has announced. 

The time for processing administrative procedures in excess of 15 days will be cut by 25-30 percent.

Following a motto of “discipline, integrity, action, service”, Bac Giang will improve the quality of its officials and civil servants, reform the apparatus and build e-government, and better the quality of its public services, creating a fair and favourable business environment and contributing to socio-economic development.

At the same time, it will also improve its rankings in the Public Administration Reform Index (PAR INDEX), the Provincial Competitiveness Index (PCI), the Provincial Governance and Public Administration Performance Index (PAPI), and the Satisfaction Index of Public Administration Services (SIPAS).

It will step up the delivery of online public services, Levels 3 and 4, striving to handle 40 percent of documents at Level 3 and 30 percent of those at Level 4.

The Chairman of the provincial People’s Committee issued a decision in April announcing a list of 176 services available on the province’s public services portal./.

HCM City steps up construction of Ben Thanh - Suoi Tien metro line

The Ho Chi Minh City Urban Railway Management Board is accelerating the construction of Ben Thanh - Suoi Tien Urban Railway Line 1 (Metro No. 1), in particular the underground terminals, with a view to putting the line into use in late 2021.

As of May 25, some 72.90 percent of the workload had been completed.

In late April, the architecture on Floor B1 was basically completed.

The 2.05-billion USD line, which runs 19.7 km between District 1 and District 9, is the first of at least six metro lines to be built in the city.

Expected to open in the first quarter of 2021, the metro line stations will be linked to buses operating in the vicinity of the line to help people reach the station more easily.

Construction began in August 2012 with 14 terminals, including three underground./.

Treasury raises over 158mn USD in latest G-bond auction

An auction of Government bonds on the Hanoi Stock Exchange (HNX) on May 27 raised 3.707 trillion VND (158.5 million USD) for the State Treasury.

G-bonds worth 6.5 trillion VND were issued, with ten- and 15-year bonds bringing in 2.5 trillion VND each, five-year bonds 1 trillion VND, and those with a maturity of 30 years 500 billion VND.

Some 1.207 trillion VND worth of ten-year bonds was mobilised at an annual interest rate of 2.9 percent, 0.1 percent higher than at the previous auction on May 20.

Meanwhile, 15-year bonds were sold at an annual interest rate of 3.07 percent, 0.12 percent higher than at the previous auction and raising 2.5 trillion VND for the State Treasury.

None of the five- and 30-year bonds were sold.

The State Treasury has collected 53.443 trillion VND via G-bond auctions at HNX this year./.

An Giang: Key exports post growth in first five months despite COVID-19

Despite the blow struck by the COVID-19 pandemic, exports from the Mekong Delta province of An Giang grew 0.08 percent year-on-year to 358.43 million USD in the first five months of this year, according to the provincial Department of Industry and Trade.

Exports are expected to total 450.46 million USD in the first half of the year, up 4.04 percent from a year earlier.

Though the pandemic has put significant pressure on the province’s key foreign currency earners such as rice, fisheries, fruit and vegetables, and garments, these products posted growth during the period.

An Giang exported 197,890 tonnes of rice worth 102.8 million USD from January to May, equivalent to 43.95 percent of this year’s plan. It is estimated that rice exports in the first half will reach 264,430 tonnes, worth 138.85 million USD, up 4.93 percent and 8.05 percent, respectively.

It shipped 49,400 tonnes of fisheries products worth 119.09 million USD during the period, year-on-year increases of 0.03 percent and 0.47 percent, respectively. Export volumes are expected to hit 60,680 tonnes in the first six months, while value will likely reach 146.28 million USD, up 1.14 percent and 1.58 percent, respectively.

Exports of frozen fruit and vegetables amounted to 3,590 tonnes for revenue of 6.08 million USD in the first five months, down 0.75 percent and up 0.16 percent year-on-year, respectively.

Shipments of garments rose 2.98 percent year-on-year to 52.57 million USD. The first-half figure is forecast to rise 2.97 percent to 63.84 million USD.

As the coronavirus outbreak remains a complex issue in many of Vietnam’s major markets, including the US and the EU, An Giang has put substantial effort into seeking new markets for its products, said Nguyen Minh Hung, Director of the department.

The province has also provided exporters with regular updates on key foreign markets and helped them boost sales in these markets, he added./.

Bamboo Airways to increase Hanoi-HCM City flights

Vietnam’s newest carrier, Bamboo Airways, has said it will increase flight frequency on the Hanoi - Ho Chi Minh City route to 16 per day starting from June 1, in an effort to meet demand during the peak summer season.

Wide-body Boeing 787-9 Dreamliner aircraft will be used as there is more room to keep passengers apart and curb the spread of COVID-19.

Passengers will have their temperature checked and be asked to make health declarations and wear face masks during their trips.

Aside from the Hanoi - HCM City route, Bamboo Airways has also increased the frequency of flights linking the two major cities with popular tourist destinations around the country.

The carrier is set to resume flights on all its domestic routes in June./.

Deputy PM orders Phú Bài International Airport expansion plans

Phú Bài International Airport in Huế City could soon be expanded.

Deputy Prime Minister Trịnh Đình Dũng has assigned the Transport Ministry to conduct detailed research to look at ways to increase the airport’s capacity.

Based in the central province of Thừa Thiên Huế, the airport was built in 1940 and only has one 2.7km long runway.

Since 2015, passenger rate has grown between 12 and 18 per cent each year.

In 2019, the number of passengers using the airport reached nearly two million, 500,000 more than its designed capacity.

The Civil Aviation Authority of Việt Nam is proposing to invest VNĐ1.67 trillion (US$71.5 million) to extend the runway and upgrade taxiways over the next five years.

The aviation authority said the investment does not include the fund for land clearance which would be divided into a sub-project implemented by the locality where the airport based.

The airport is located on National Highway 1A in the province's Hương Thủy Town. It plays an important role in the economic, cultural, social and defence strategy of Thừa Thiên-Huế and the northern-central region and is crucial to promoting tourism in Huế City and the entire central region.

Ministry of Transport requests opening international routes

The Ministry of Transport has just assigned the Civil Aviation Authority of Viet Nam (CAAV) to study and propose measures to gradually loosen immigration and reconnect a number of international routes for trade, visiting relatives and tourism.

Accordingly, the Ministry of Transport requested the authority to study and report to the ministry on the resumption of some international routes on a bilateral basis before June 10 to submit to the Prime Minister for consideration and decision.

Domestic routes have been reopened, but international routes are still closed due to developments of the COVID-19 pandemic in other countries.

Domestic airlines only carried out some international flights to bring back Vietnamese citizens abroad.

The Airport Corporation of Viet Nam (ACV) reported that the aviation market had gradually recovered from the beginning of this month.

The number of flights began to increase, to about 644 take-offs per day so far.

The ACV said that the pandemic had been controlled in Viet Nam and socio-economic activities had gradually returned to normal. The frequency of domestic routes has recovered and gradually increased.

The CAAV reported that the number of passengers through airports nationwide reached 2.88 million passengers this month, down 70 per cent compared to the same period last year.

Although passenger transport this month decreased sharply compared to the same period last year, it has significantly increased compared to last month due to the positive results from COVID-19 pandemic control of the country. 

TPBank sees small profit gain, capital hike in 2020

Tien Phong Joint Stock Commercial Bank (TPBank) is targeting pre-tax profit growth of 5 per cent on-year to VND4.07 trillion (US$174.2 million) in 2020, lower than previously forecast, on worries that the economy is suffering from the global COVID-19 pandemic.

The bank is looking at 15 per cent annual credit growth in 2020, which may reach VND117.2 trillion. Of the figure, total lending is expected to gain 9 per cent to VND105.2 trillion.

From January-April, TPBank recorded a total profit of VND1.2 trillion, equal to 30 per cent of the annual target, while total lending growth reached 11 per cent, almost accomplishing the target of 11.5 per cent set by the State Bank of Vietnam (SBV).

TPBank will invest further in bonds issued by economic institutions, raising the total value of bond investment to VND12 trillion at the end of the year – 2.5 times the amount made last year.

The non-performing loan ratio is expected to stay below 2.5 per cent in 2020. Capital raising is forecast to increase by 7 per cent to VND158.5 trillion in 2020, of which individual savings will be up 15 per cent on-year to VND122.7 trillion while institutional saving and borrowing will fall 13 per cent on-year.

The bank had set “more ambitious” profit targets in 2020 but the pandemic had made the board of directors revise its plans, Chairman Do Minh Phu told the meeting on Wednesday.

TPBank would seek higher revenues from other activities such as services and bancassurance in addition to lending interest to keep its business stable, he said.

Revenue from financial services was almost zero during the social-distancing period in early April, the chairman said, adding the situation had improved since then but was not good as expected.

The impact of COVID-19 had toppled the forecast, he said, adding small- and medium-sized enterprises (SMEs) had been weighed down by the disease.

TPBank would minimise the costs, suspend recruitment and pay rises in 2020, and ask for higher productivity from employees, Phu said, assuring there would be no salary cuts this year.

TPBank also plans to sell bonus shares at a rate of 20 per cent to increase its charter capital by more than 1.63 trillion to VND10.2 trillion in 2020.

The deal is scheduled for the third or fourth quarter of the year, aiming to improve the bank’s financial capacity, expand its market share, and meet the demand for medium- and long-term loans.

The capital hike was passed by shareholders at the 2019 annual meeting but the deal was not completed because the bank failed to attract investors due to the downturn of the Vietnamese stock market last year. 

Sacombank to hold online annual meeting 

Sai Gon Thuong Tin Joint Stock Commercial Bank (Sacombank) on Wednesday announced its annual shareholders’ meeting will be held online.

The meeting will take place on June 5 at the White Palace Convention Centre in Phu Nhuan District, HCM City. Shareholders will be able to submit their votes via an online platform.

Sacombank on May 26 proposed to shareholders the idea of an online meeting and 97 per cent passed it.

Guidlines to join the online annual shareholders' meeting is available at https://www.sacombank.com.vn/company/Pages/Huong-dan-tham-du-Dai-hoi-dong-co-dong-thuong-nien-truc-tuyen-nam-tai-chinh-2019.aspx?fbclid=IwAR0CPZrhGgOVUCmWnRlP6iFR-HowT6RRxyJNPi5p9GwSK-iarp7WBwhlNkM

Sacombank shares (HoSE: STB) dropped 2.9 per cent to close Wednesday at VND10,100 apiece. 

Ha Noi hopes to attract $38.3 mln of investment in H1

Ha Noi expects to attract total investment of US$38.3 million in industrial parks and export processing zones in the first half of this year, equivalent to 64 per cent of the figure in the same period last year.

The capital would come from five new projects totaling nearly $15 million and 10 capital-added projects worth a combined $23.3 million.

Le Quang Phong, deputy head of the Management Board of the Ha Noi Industrial and Export Processing Zones, said local enterprises have been facing difficulties caused by the COVID-19 pandemic.

They are making every effort to diversify material sources for production and seek new consumption markets, towards fulfiling their production targets for the second half and the whole year.

According to the management board, industrial and export processing zones in Ha Noi generate jobs for nearly 160,000 labourers, including 1,219 foreigners.

The capital city led the country in attracting foreign direct investment (FDI) in the first four months of this year, with $4.75 billion, or 30.6 per cent of the total capital poured into the Vietnamese economy, the Ha Noi Moi (New Ha Noi) newspaper reported.

Savills Viet Nam reported that at present, Viet Nam is considered an ideal destination for investors to search for investment opportunities in industrial parks, factories and export processing centres.

A lot of domestic and foreign investors are finding locations in industrial zones for investment. Some businesses want to become the investor of an industrial park with a total area of between 500ha and 1,000ha. Some others plan to expand factories, said Su Ngoc Khuong, senior director of investment, Savills Viet Nam.

Besides big cities such as Ha Noi and HCM City, satellite cities and provinces have also attracted attention of investors, including Long An and Binh Duong provinces. Those cities and provinces have good locations, abundant human resources and good infrastructure for warehousing, logistics and transportation to major cities, Khuong said.

John Campbell, manager of Industrial Services, Savills Viet Nam, said: “One of the main drivers in 2019 and this year is Viet Nam joining key FTAs. Amongst other Southeast Asian countries, Viet Nam is far more into free trade agreements, which means much more access to the global market.”

“This year, we have seen official ratification by the EU with trade agreements, and this is definitely the most ambitious agreement Viet Nam has ever been in as it will bring much more interest and new markets into Viet Nam, helping it continue the transition from manufacturing to higher value industries,” said Campbell.

Therefore, “the Government should pay attention to selecting industrial investors to Viet Nam. It should focus on calling investment in technology-intensive and less labour-intensive industries,” Khuong said.

He also said that if Viet Nam wants to develop this industrial real estate segment, it must pay attention to the development of inland transportation system. It is the transportation system that helps factories to transport goods from one city to another and connects to the import-export system of goods.

One more important thing is the development of warehouses for raw materials and finished products, he said.

HCM City fosters linkages between academia, companies

HCM City authorities are helping companies access new technologies by promoting linkages between researchers and businesses, but more collaboration is needed, speakers said on Thursday at a meeting in HCM City.

Trieu Thanh Son, deputy head of the Research Management and Cooperation Department under the HCM City Institute for Development Studies, said the city has been offering assistance to companies in registration of intellectual property rights and fostering linkages between researchers and businesses.

“HCM City is now promoting the science and technology market to enable companies to adopt new technologies and increase their labour productivity.”

More collaboration between academia and businesses, however, is needed so that research results can be converted into practical technology, he added.

Nguyen Anh Ngoc, deputy director of HCM City Investment and Trade Promotion Centre, noted that the Government provided support to businesses and scientists for research, but there were no tools to foster links between scientists and businesses.

“There is a big gap between schools and research institutes and enterprises.”

The city has fostered linkages between researchers and businesses, but the results have not met expectations, he said.

When researchers try to find partners to commercialise their research ideas, they often encounter resistance because of policy-related issues, he added.

Another obstacle is that businesses too often focus on short-term commercial goals instead of long-term investment in technology and research.

Nguyen Khac Thanh, deputy director of the Department of Science and Technology, said the department has offered numerous programmes and State policies to researchers and businesses.

The department helps businesses improve their technologies and products and assists them in working with scientific and technological organisations.

The department also offers support to start-ups, fostering incubation and adoption of technologies, and organises exhibitions, scientific and technological transfer conferences, and business networks.

The department has established a Scientific and Technology Business Club to facilitate networking and exchange, and technology transfer. Its board of chairmen includes six members from formally recognised scientific and technology businesses.

However, enterprises need to be more proactive and innovative, and take part in networking events, he said.

Doan Thanh Khe, director of Phat Viet Food Technology Ltd Company, said the company regularly invests in high-quality modern facilities and equipment as well as a trained workforce and scientific research.

HCM City has more than 74 recognised science and technology businesses out of around 200 nationwide. Ninety per cent of enterprises in HCM City are micro- or small-sized enterprises and lack the financial and human resources for R&D.

The city has approved a science and technology market development programme, which targets increasing the value of science and technology products and services by 15 per cent annually in the next five years and 20 per cent in the case of key technologies. 

Hau Giang Province overrun with property projects

The number of property projects in Hau Giang Province surpasses actual demand, experts have said.

Hau Giang Province has 62 real estate projects that have been approved for development in addition to many existing projects, according to the provincial Department of Construction.

Vi Thanh City, with a population of around 200,000, has 21 new projects under development, while other cities and districts have around 10. The projects cover hundreds of hectares, consisting of mostly land plots.

Many realtors had said there were too many property projects. Nguyen Thanh Nam, general director of T.N.L. Real Estate Company, told Bao Dau Tu newspaper that Hau Giang’s supply of real estate projects was much higher than demand.

The province’s population was only 733,000 as of 2019, and had been declining over the years, he said.

In addition, real estate businesses were mostly targeting investors that plan to resell their property, as opposed to people who were planning to stay there, he said.

Meanwhile, Le Tien Chau, chairman of the province’s People’s Committee, said that while the number of urban areas and property projects was adequate, their quality, scale and connectivity were not up to standards.

"Real estate development needs to focus on bettering the lives of locals and urban development should be sustainable. To ensure enough physical space for the future, it should not surpass actual demand," he said.

The province said it would improve management of real estate development to ensure that pricing would not be too high compared to locals’ earnings, and that calls for investment are done legally.

With an abundance of land and improvements in the investment climate, Hau Giang has been attracting more and more investment projects, especially in real estate. 

Vingroup forecast revenue up 12 per cent, focus on industrial real-estate

Conglomerate Vingroup JSC plans to earn VND145 trillion (US$6.2 billion) in revenue this year, up 12 per cent year-on-year.

The information was released during the group’s annual general meeting of shareholders (AGMs) held on Thursday in Ha Noi.

Post-tax profit is expected to decrease 35 per cent to reach VND5 trillion.

Due to the impact of the COVID-19 pandemic, Vingroup Chairman of the Board of Directors Pham Nhat Vuong said its tourism arm Vinpearl was most ravaged by the disease.

“However, the group still seeks solutions to stimulate domestic demand for tourism, especially inbound because we could not offer services for foreign clients during the pandemic,” he said.

“According to statistics, Viet Nam greets 80 million domestic visitors and 18 million foreign visitors each year,” Vuong said.

“Vingroup chairman said if the disease was controlled and people could not travel abroad, domestic tourism would be strongly boosted. Therefore, Vinpearl can partially offset the damage caused by COVID-19,” Vuong said.

Earlier, in a conference with businesses of Ha Noi on April 16, Vingroup said that during the disease outbreak, Vinpearl stopped 70 per cent of its hotel services and ceased operation of 100 per cent of its entertainment services.

In the period, revenue from tourism and entertainment plunged. The group still maintained a hotel staff of more than 18,000 and must ensure income for all of them.

Industrial real estate will be one of Vingroup’s main segments in the future, Vuong said.

Vinhomes Joint Stock Company (Vinhomes), real estate arm of Vingroup, has started to implement some projects in Hai Phong and other localities. Some projects have been licensed for site clearance, so construction can be gradually started by the end of next year.

The VinFast automobile manufacturing complex has been converted into an industrial park managed by Vinhomes with a total area of ​​335 hectares.

The group has decided to delay the investment project in Lach Huyen Port because it is incapable of arranging funds for the project at present.

For the industrial segment, Vingroup Chairman Vuong said VinFast is researching new markets for export besides existing markets.

“We aim to focus on the US as this is one of the most fastidious markets in the world, if you can penetrate this market, to some extent, we can be able to reach others,” he said.

“With the automobile segment, Vingroup determines to invest heavily and drastically and accept to compensate for losses from three to five years, with the goal of increasing market share,” Vuong said.

At the meeting, the Board of Directors agreed on the plan not to pay dividend for 2019, using all the remaining profits to invest in business. This is the second consecutive year that Vingroup retained its profit and has not paid a dividend.

The last time it paid a dividend was in June 2018.

In order to proactively cope with the instabilities caused by COVID-19, the group will stick with austerity measures, strictly control the expansion of spending and investment, optimise operational efficiency in existing fields. 

PV Power to pay cash dividend, develop solar energy

PetroVietnam Power Corporation (PV Power) plans to pay a 2019 cash dividend of 3 per cent instead of paying in shares at a rate of 6 per cent as planned previously.

The corporation targets to earn VND35.5 trillion (US$1.5 billion) this year, up slightly from last year.

Post-tax profit is forecast to decrease 28 per cent to VND2 trillion.

These results were estimated based on the scenario of oil prices staying at $60 per barrel.

Due to the impacts of social distancing orders and the temporary shutdown of production nationwide during the COVID-19 pandemic, the demand for power had reduced significantly, according to PV Power.

They said electricity output from PV Power's plants had fallen by about 10 per cent.

In a meeting with investment funds held on Monday, to follow the global trend of renewable energy development, PV Power's leaders revealed the corporation’s plan to establish a member company to develop solar energy, which was awaiting approval.

PV Power plans to install rooftop solar panels on all of the Vietnam Oil and Gas Group's (PVN) facilities.

“We have experience in power investment management and operation. We are selling electricity to EVN with the available infrastructure, and the connection will be convenient. The bidding mechanism for solar power projects remains very competitive but the investment process is simpler than other power sources, so we are confident we can implement it quickly,” said a PV Power representative.

“In the first year of operation, PV Power expects to have a solar power capacity of about 50 MW, relatively small compared to other units in the industry. However, with the advantages of infrastructure and staff, many other units are eager to co-operate with us.”

To ensure input materials for production, PV Power needs about 3.4 million tonnes of coal this year and has signed long-term contracts with some suppliers, including the Viet Nam National Coal and Mineral Industries Group (Vinacomin or TKV). Under the contract, TKV will provide about three million tonnes of coal for PV Power.

Gas reserves for the Nhon Trach power plant is declining, but the company’s supplier PV Gas is expected to supplement gas exploited from the Sao Vang Dai Nguyet gas field.

The gas field is located in Nam Con Son Basin, approximately 300km offshore Vung Tau City at a depth of 110-130m.

PV Power is also researching the use of alternative raw material sources such as liquefied natural gas (LNG) for the plant to reduce dependence on one supplier. 

Vincom Retail forecasts 2020 profit down 12 per cent due to pandemic

Shareholders in Vincom Retail have agreed with the company’s 2020 net profit target of VND2.5 trillion (US$107.3 million), a drop of 12 per cent over 2019 due to the COVID-19 pandemic.  Total revenue for the whole year is targeted at VND9.9 trillion, up 7 per cent year-on-year.

At the annual shareholders' meeting on Tuesday, chairwoman Thai Thi Thanh Hai said the disease had affected customers’ spending habits while social distancing had disrupted retail activity at shopping centres.

Ending March, Vincom Retail recorded revenue of nearly VND1.7 trillion and net profit of VND492 billion, down 26 per cent and 19 per cent year-on-year, respectively. It also closed 23 centres in HCM City and Ha Noi out of the 79 centres it has across the country from March 27 and April 22.

The company said it would not reduce rents in the long-term but instead share the difficulty with customers with a support package worth VND600 billion to help tenants that had to close during the lockdown period.

This year, Vincom Retail will try to stimulate consumption while focusing on opening new megamalls with the target of having 158 shopping centres by 2026.

In addition, the company will start leasing and operating a new business model of shopping tourism with the Grand World Phu Quoc complex. With 1,000 shophouses and hotel services, Tran Mai Hoa, general director of Vincom Retail, hopes the combination of tourism, shopping and recreation will offer customers and retailers a new experience and help boost the national economy.

Responding to the company’s plan to issue bonds worth total VND4.3 trillion this year, its finance director said the company had cash and cash equivalent of VND3 trillion to meet all current investment needs. The plan was designed to prepare cash for new opportunities or be used for projects that have already gone into operation.

Vincom Retail reported total revenue of VND9.26 trillion in 2019, most of which came from leasing real estate and related services worth more than VND7 trillion. Profit after tax reached VND2.85 trillion, up 18 per cent year-on-year.

Thanh Ha lychee fair opens in Hanoi

A three-day fair of Thanh Ha lychee, a specialty of the northern province of Hai Duong, was opened on May 29 at the Vietnam Agricultural Exhibition Centre in Hanoi.

Dao Van Ho, Director of the Centre for Agricultural Trade Promotion, said despite the COVID-19 pandemic, the centre still organizes trade promotion activities, connecting consumption of agricultural products among provinces.

“This fair is the first one to open after the pandemic. We will continue to organise similar fairs nationwide in the near future. We have recently exported the first batches of Thanh Ha lychee to Singapore, the US and Australia,” Ho said.

Besides lychee, the fair also displays special agricultural and aquatic products from various cities and provinces nationwide.

All products have been certified for safety with certificates of chain production and VietGAP standards, including Seng Cu rice, Tam Xoan Hai Hau rice, Cao Bang black jelly, Meo Vac honey, Tan Cuong tea, Moc Chau vegetables and fruits, Ha Long seafood, Binh Phuoc cashews, and Phu Quoc and Phan Thiet fish sauce./.