CPI grows 3.57 pct in nine months, inflation target achievable: GSO

The average consumer price index (CPI) in the nine months of 2018 rose by 3.57 percent year on year, compared to the 4.14-percent growth in the same period last year, according to the General Statistics Office (GSO).

At a press conference on September 28, GSO General Director Nguyen Bich Lam said CPI in September increased 0.59 percent from last month, 3.98 percent from the same period last year, and 3.2 percent from last December.

In the last three quarters, CPI gained 0.35 percent month on month on average, but the pace slowed down to 0.04 percent between August and September when the eight-month and nine-month CPI growth was 3.53 percent and 3.57 percent, respectively.

Lam said the CPI development so far this year has evidenced active moves taken by the Government, the steering board for price management, ministries, sectors and localities to control prices. Therefore, the target of keeping this year’s inflation under 4 percent as set by the National Assembly is achievable.

However, there remain many risk factors from the international situation, including the US-China trade war, the political tension in the Middle East and the crisis in Turkey, which could affect domestic prices in the remaining months of 2018.

He called on ministries, sectors and localities to keep a close watch on market fluctuations to suggest solutions to the Government and the steering board for price management to help control inflation and stabilise the macro-economy.

Elaborating contributions to the nine-month CPI expansion, the GSO’s Price Statistics Department noted price increases in health care and educational services, food, petrol, and house and household appliance maintenance services. Higher travel demand during holidays also boosted prices in the tourism group.

The department said sectors and authorities at all levels have been taking actions to keep the CPI growth rate at less than 4 percent this year. While the Ministry of Finance has enhanced monitoring price management, it has also coordinated with the Ministry of Industry and Trade to align domestic petrol prices with the global market.

The State Bank of Vietnam has also persisted in a monetary policy aiming at ensuring the macroeconomic stability. As of September 24, the US Federal Reserve had raised interest rates twice, in March and June. As a result, the US dollar has appreciated against other currencies, and the VND/USD exchange rate has also tended to rise. 

However, by setting the daily reference exchange rate in comparison with eight major currencies, domestic USD prices are still within the trading band of +/- 3 percent, the department said, adding that gold prices in the domestic market were in line with world prices.

Free e-learning course launched to support SMEs

The Centre for Support of Small and Medium-sized Enterprises in the North (TAC-Hanoi) in partnership with MVV Entrepreneur Academy Corporation launched SME E-learning, a free online course for the SMEs, on September 28.

The SME E-learning features various online lessons covering key corporate issues, including sales and marketing, finance, accounting, human resources management, production management, strategic thinking and leadership skills, said Director of the TAC-Hanoi Le Van Khuong.

The move is part of the centre’s efforts to assist with the enforcement of the Law on Support for SMEs, which took effect from January 1, 2018, he noted, adding that it aims to provide fundamental knowledge and management skills for business managers and startup owners.

The course was built on the MVV Everlearn e-learning platform, using cloud computing technology, to offer integrated advanced learning tools. With this system, learners can study anywhere at any time on their smartphones. They will also benefit from a wide range of online learning materials, including numerous case study videos, and at the same time, they can contact and interact with each other on the system.

Khuong said he hopes that the SME E-learning will encourage more Vietnamese SMEs to pay heed to human resources development.

This year, the course provides free 15 online lessons, developed by the MVV Entrepreneur Academy Corporation. All the lessons are available on the website: vietnamsme.gov.vn and the Facebook fanpage: facebook.com/TACHANOI. Learners can register to join the course via http://bit.ly/sme-elearning. 

According to the Ministry of Planning and Investment, about 98 percent of the over 700,000 businesses in Vietnam are SMEs and the private economic sector – of which SMEs make up the majority – contributes about 48 percent to the country’s GDP and creates over 50 percent of total jobs.

Vietnam Airlines rated as four-star airline by APEX

The national flag carrier Vietnam Airlines has been honoured with the Four-Star Official Airline Ratings by the Airline Passenger Experience Association (APEX). 

The award was handed over to the airline during the APEX EXPO in Boston, the US, Vietnam Airlines said on September 28. 

APEX is the only non-profit membership trade association dedicated to improving the entire airline passenger experience.

The APEX Official Airline Ratings were created based on passenger feedback gathered through APEX's partnership with TripIt from Concur, the world's highest-rated travel-organising app. 

Using a five-star scale, more than one million flights were rated by passengers across nearly 500 airlines from around the world between July 1, 2017, and June 30, 2018. 

First, passengers rated their overall flight experience from one to five stars. On the same screen, passengers were given the opportunity to provide anonymous ratings in five subcategories: seat comfort, cabin service, food and beverage, entertainment and Wi-Fi. The single screen rating allows airline passengers to easily rate their flight in less than 15 seconds.

At the prestigious four-star airlines level, only 23 global airlines attained the status. An additional 17 major regional airlines received the four-star airline status. 

The year 2018 has seen the improvement of Vietnam Airlines in service quality, aiming to meeting increasing demands of passengers, with Vietnamese culture deeply embedded in its products and services. 

Through the introduction of traditional “Pho” (noodle) and seasonal specialties such as “Thieu” lychee and longan, Vietnamese cuisine has become a highlight on each flight.

In July, the carrier received a four-star certificate by Skytrax for the third consecutive year.

 It was listed as a top Asian airline in 2018 by tourism website Trip Advisor.

Vietnam Airlines has also received two prestigious awards of “World’s Leading Cultural Airline” and “World’s Leading Airline –Premium Economy Class” in the World Travel Awards.

In 2017, the carrier recorded sales of 88.4 trillion VND (3.7 million USD) and carried 26.5 million passengers. Its on-time performance index (OTP) exceeded 90 percent.

Vietnam’s rubber wood available in over 100 nations, territories

Vietnam’s rubber wood and rubber wood products are exported to over 100 nations and territories, said To Xuan Phuc, a senior policy analyst from Forest Trends, a US-based non-profit organisation.

Each year, Vietnam earns from 1.7-1.8 billion USD from exporting rubber wood and products, accounting for over 20 percent of the total export value of the timber sector. Rubber wood and products are also one of the most important exported commodities of the rubber sector.

Rubber wood is playing an increasingly essential role in both rubber and timber sectors. In recent years, the rubber sector has supplied around 4.5-5 million cu.m of wood with a clear source of origin, as they come from over 25-year-old rubber trees which have low latex productivity.

Vietnam now has around 970,000 hectares of rubber trees, of which an average 25,000 hectares produce over 4.5 million cu.m of wood each year. Almost all wood exploited belongs to subsidiaries of the Vietnam Rubber Group, which makes Vietnamese rubber wood easily receive Forest Stewardship Council (FSC)’s sustainable timber certificate.

Wood with FSC certification will help expand Vietnam’s export of rubber wood and rubber wood products, Phuc affirmed.

However, to that end, the rubber sector should have a specific strategy, in which the Vietnam Rubber Group plays the most important role, he added.

Hanoi to host int’l precision engineering, machine tools expo

As many as 165 companies from 15 countries and territories will participate in the 6th International Precision Engineering, Machine Tools and Metalworking Exhibition & Conference (MTA HANOI 2018), scheduled to take place in the city from October 16-18.

Covering an area of 4,300sq.m, the exhibition will showcase offerings and products covering a broad technology scope relevant to the manufacturing sector.

It will introduce a range of modern technologies and smart equipment from many famous brand names in the world.

Speaking at the press meeting held in Hanoi on September 28, BT Tee, General Manager of Vietnam – the organiser, said more than 75 percent of exhibitors at the event would come from foreign countries including China, Germany, Indonesia, Japan, the Republic of Korea, Thailand, the US and the UK.

The exhibition would be an opportunity for cooperation for leading firms in the supply chain of manufacturing and mechanics in the northern region, he said.

Pham Duc Thien, head of mechanical engineering under the Hanoi University of Mining and Geology, said the total capital of local mechanics businesses reached 360-380 million USD while the foreign investment in the sector in Vietnam was around 2.1 billion USD.

The figures will continue to increase in the upcoming time as Vietnam becomes a promising destination for foreign investors, Thien said.

He said that export volume of the mechanical manufacturing industry was expected to account for 35 percent of the total mechanical output by 2020, 40 percent by 2030 and 45 percent by 2035.

The strategy is to focus on development of some sub-sectors, such as automobiles, tractors, agricultural machinery, construction equipment, industrial equipment and electrical equipment to meet with the economy’s requirements and partly for exports. In addition, mechanical workforce must be trained to meet the needs of modern manufacturing. 

Nguyen Thi Mai Phuong, a representative from Cybertech Vietnam Company, said the exhibition would be an opportunity for Vietnamese firms to access advanced technologies, thus helping them deeply join into the production chain.

A range of seminars, interactive workshops and panel debates on some of the current issues affecting the manufacturing and precision engineering sectors, including forums on Industry 4.0 technology, blockchain and OT security system, will be held on the sidelines of the exhibition.

Seafood Fair scheduled for October in Hanoi

The Seafood Fair will take place in Hanoi from October 6-10, a representative of the Trade Promotion Centre for Agriculture under the Ministry of Agriculture and Rural Development told a press conference on September 28. 

Following the success of the fair of Vietnamese tra fish and aquatic products in Hanoi in 2017, the event will be co-hosted by the Trade Promotion Centre for Agriculture, the Agro Processing and Market Development Authority, the Directorate of Fisheries, the Vietnam Fisheries Society and the Vietnam Association of Seafood Exporters and Producers. 

Director of the centre Dao Van Ho said the event aims to maintain the sustainable production and consumption of Vietnamese aquatic products, promote domestic trade and consumption, and attract investment to aquaculture. 

Apart from fresh seafood such as tra fish, shrimp, cuttlefish and octopus, the fair will also showcase equipment and materials used for aquaculture, feed for aquatic products and support services, he said. 

Meanwhile, a fair of Vietnamese craft villages and an international seminar on the programme “One Commune – One Product” (OCOP), one of the important trade promotion events of  the agricultural sector, will take place in the capital city from November 17-21. 

The fair is expected to introduce outstanding craft village models nationwide, popularise the OCOP programme, and expand handicraft markets.

Experts seek measures for completion of market economy institution in Vietnam

The Ho Chi Minh National Academy of Politics (HCMA) and the Republic of Korea (RoK) International Cooperation Agency (KOICA) jointly held a high-level conference in Hanoi on September 28 to discuss the building and improvement of market economy institution in Vietnam.

Addressing the event, the third of its kind and came as part of the Vietnam-RoK Development Experience Exchange Partnership (DEEP), HCMA Vice Rector Associate Prof. Dr. Nguyen Viet Thao highlighted that the conference took place when Vietnam is stepping up institutional reform for better efficiency.

He expressed his belief that the outcomes of the conference will be a valuable scientific foundation for institutional completion, especially market economy institution, and the sustainable and inclusive growth of Vietnam in the future.

Thao noted that recently, the Party, State and Government have taken specific steps to perfect the socio-economic institution, including the streamlining of systems, the establishment of the National Financial Management Committee, and the introduction of mechanisms to promote the building of high-level human resources for the national industrialisation and modernisation.

He held that the event is a chance for leaders, management officials and experts of Vietnam and the RoK to work together in building scientific and practical basis to serve the recommendation of suitable policies for Vietnam.

Results of Vietnam-RoK joint researches over the past three years have been applied in the process of making and implementing policies of ministries, agencies and localities, as well as the training of officials at the HCMA, he said.

RoK Ambassador to Vietnam Kim Do Hyon said that Vietnam has great potential for development, especially in human resources. 

He said that through the DEEP project, the RoK hopes to share with Vietnam its experience and lessons the country has learnt through the process of national development, helping Vietnam gain more achievements.

The diplomat said he believes that the project will be a forum for the two countries to exchange important values for inclusive and sustainable growth, strengthening the bilateral strategic partnership.

DEEP was launched in 2016 using non-refundable aids from the RoK Government though the KOICA. It aims to build strategic partnership between the two sides in public sector’s restructuring, especially in human resources and market economic system development.

The project focuses on promoting high-quality human resources, public sector’s reform, along with the Vietnamese economy and social welfare system, the building of effective policies for growth and financial market development, the strengthening of industrial ecosystem, and sustainable welfares for labour market.

Property developers diversify capital sources

Property developers are looking to other channels to raise capitals, such as bond issuance, as credit policies for property development are gradually being tightened.

Hoang Cong Tuan, head of the Macroeconomic Department at MB Securities, said that property developers were still mainly raising capital from banking loans and from customers, with payment following construction progress.

However, bond issuance is proving an effective channel and is forecast to become a major tool for raising capital as credit policies for the property sector are gradually tightened, Tuan said.

According to Nguyen Thi Huong Giang from Saigon Securities Inc, with the recovery of the real estate market during the past three years, many foreign investors were showing interest in investing in listed or public property companies.

Giang said that foreign investors now tended to seek to buy stakes or convertible bonds of real estate companies as a channel for investment.

Experts said that during the downturn of the property market in 2011-2013, bond issuance to raise capitals from investors was difficult while direct investment was more effective.

However, bond issuance is more advantageous when the property market and the securities market are in recovery as they are today. Recently, several property developers geared up for bond issuance.

For example, Novaland raised 310 million USD through issuing bonds to buy land and develop projects.

Sacomreal also planned to issue 73 million bonds to raise capitals for M&A deals.

According to Tuan, banks have been more cautious about providing loans for property development since 2017.

The central bank regulated that the ratio of short-term funds used for medium and long-term loans would be reduced from 50 percent in 2017 to 45 percent in 2018 and 40 percent from 2019. The property sector mainly needs medium and long-term loans.

The Government recently issued a resolution related to its August meeting which required tight control of credits for the property sector.

Statistics of the central bank showed that loans for the property sector increased by 2.19 percent in the first half of this year, much lower than the overall credit growth of 6.16 percent.

Outstanding loans in the real estate sector accounted for 7.5 percent of the economy’s total outstanding loans compared to 15.8 percent in 2017 or 17.1 per cent in 2016.

According to Duong Thuy Dung from real estate services firm CBRE Vietnam, the credit policies for the property sector were tightened gradually according to a long-term roadmap. Thus, firms could have time to look for alternative sources of capital such as bond issuance, cooperation with foreign investors or finding partners for each project.

Experts review monetary policy for third quarter

Deputy Prime Minister Vuong Dinh Hue, Chairman of the National Financial and Monetary Policy Advisory Council, chaired a meeting in Hanoi on September 28 to review monetary policy for the third quarter of 2018 and outline tasks for the coming time. 

Members of the council said Vietnam’s financial and monetary policy, and macro-economy remain stable this year amid geo-political and commercial instability in the world.  

The country’s gross domestic product (GDP) grew by 6.98 percent in the first nine months of this year, the highest since 2011 and surpassing the set target. Inflation was under control, below the target set by the National Assembly. 

Monetary policy has been directed actively and flexibly and combined with fiscal policy in order to develop the government bond and monetary markets, thus cutting lending costs for the State budget, they said. 

The council’s members pointed out that foreign exchange and interest rates face uncertain factors of the world economy such as the escalating trade war and difficulties in the domestic private sector.  

They suggested that the government should keep a close watch on trade disputes globally to mitigate negative impacts, tighten fiscal policy, stabilise the macro-economy, renew growth model based on increasing labour output. 

The council proposed cutting interest rates if possible, flexibly directing foreign exchange rates, restructuring export markets, especially China, and curbing inflation below 4 percent this year. 

The Deputy PM acquired suggestions at the event and promised to submit them to the government to adopt suitable measures.

Philippines launches safeguard investigation on Vietnamese cement

The Philippines notified Vietnam that it has initiated a preliminary safeguard investigation on the importation of cement from various countries, including Vietnam, according to the Ministry of Industry and Trade.

According to the notification issued earlier this week, the investigation was initiated on September 10 for some cement products exported to the Philippines in the period of 2013-2017.

The investigation was based on import data obtained from official sources and information submitted by members of the Cement Manufacturers Association of the Philippines showing that increased imports of cement are a substantial cause of serious injury to the domestic industry in terms of declining market share, production sales, capacity utilisation, profitability, price depression, suppression and undercutting.

The investigation has been initiated to determine whether safeguard measures are warranted.

A review by the Philippine Department of Trade and Industry (DTI) found that imports grew 70 percent year-on-year in 2014; 4,391 percent in 2015; 549 percent in 2016 and 72 percent in 2017.

The DTI said Vietnam was the country with the largest export volume to the Philippines during the period 2014-2017.

According to the existing regulations of the Philippines, the exporters and importers, organisations inside and outside the Philippines have the right to express their opinions and comments about this investigation, including comments on the impact of applying the safeguard measure to the public interest.

Meanwhile, DTI required Vietnamese exporters that are already identified by the investigating authorities to respond to the questionnaire in the case.

The General Department of Vietnam Customs said in the first seven months this year, Vietnam’s cement exports to the Philippines increased by 23.5 percent in volume to 3.49 million tonnes and 28.1 percent in value to 159.73 million USD. Price increased by 3.8 percent to 45.3 USD per tonne.

According to the Ministry of Construction, Vietnam exported 23.28 million tonnes cement in the first nine months this year, 66 percent higher than the same period last year.

This figure was 3-4 million tonnes higher than the export target at 18-19 million for the whole year.

During the first nine months, the domestic cement industry’s total consumption of cement reached 72.82 million tonnes, including 49.54 million tonnes in the domestic market.

Of that, the cement consumption volume in September reached 7.88 million tonnes, 14 percent higher than the same period last year, including 5.68 million tonnes for the domestic market and 2.2 million tonnes for export.

Cashless payment needs a boost in rural areas

Vietnam is entering the Fourth Industrial Revolution with the participation of all sectors, including the banking system; however, non-cash payment has seen development stall as the country’s population has not yet embraced its benefits.

Representatives from various sectors and agencies discussed how to promote cashless payment systems in rural areas at a workshop in Hanoi on September 28.

At the workshop, Deputy Chairman of Vietnam Farmers’ Association Pham Tien Nam said these cashless systems are a worldwide trend that some Vietnamese people have started to embrace as an alternative to normal cash transactions.

“Non-cash payments will be indispensable as the country’s technology and economy develop,” said Nam. “The whole world is moving toward a cashless society.”

Nam cautioned that the development of systems in Vietnam, especially in rural areas, was still limited.

“About 40 percent of Vietnamese people already have bank accounts, but 90 percent of population still spends cash daily,” he said. “Nearly 99 percent of people use cash to pay for commodities valued below 100,000 VND, and up to 85 percent of ATM transactions are cash withdrawals.”

Cash is also fading away in tax payments. Electronic taxation was implemented for the first time in 2014, and 95 percent of businesses have now registered to pay taxes electronically via commercial banks. The portion of tax revenue received electronically has risen to 70 percent, but there are still businesses that prefer to make direct payments.

The utilities sector is also moving away from traditional payment methods. A report by Electricity of Viet Nam showed that there are 4.5 million customers paying via banks and intermediaries, accounting for 18.47 percent of users nationwide. There may still be so many holdouts because people are afraid of change.

According to Nam, domestic consumers and rural farmers often use cash because it is fast, convenient and accepted universally. It is also easy to manage a cash budget without worrying about additional costs. Cash payments are secure and private because they leave no digital trace and reveal no personal information.

Nam said that while Vietnamese consumers, especially those in rural areas, had been encouraged to use cashless payments, the system’s infrastructure remained weak.

Unofficial statistics report that, excluding Agribank, commercial banks have only two or three transaction points in each rural district. Meanwhile, urban districts have nearly 40 transaction points on average.

Nghiem Thanh Son, Deputy Director of the Payment Department of the State Bank of Vietnam (SBV), said more than 60 percent of the population in rural areas uses smart phones, which could signify favourable conditions for non-cash payment systems to develop.

“The challenge now is to expand the network of card acceptance points to help people make small transactions in rural and remote areas,” Son said. “In addition, the Central Bank should allow non-bank organisations to provide collection and payment services to ensure users have enough options.”

Son said that among the tens of millions of successful daily transactions, a very small number of failed transactions had caused customers to doubt the efficacy of the whole system.

“No matter where the error comes from, whether it is the fault of the bank or the user, people will still be concerned,” he said. “The State governing body will always follow up on these problems. We will ensure we work to help people who have lost money in these cases.”

Nguyen Viet Hai, head of Agribank’s Research and Service Development Department, suggested the State Bank and relevant agencies study mechanisms for charging costs like withdrawal fees at ATMs.

“There should be a policy to encourage people in rural areas to use modern telecommunications services such as mobile phones, 4G services, internet banking and modern cashless payment systems,” said Hai.

Vietnam’s export value to US reaches record high in August

Vietnam’s export value to the US reached 4.89 billion USD in August, the highest level since January this year, according to the General Department of Vietnam Customs.

This figure rose 15 percent against that in July and 24 percent compared with that in August 2017. This was the third consecutive month the export value exceeded 4 billion USD.

Most of Vietnam’s major export products to the US maintained a positive growth rate over the same period last year, including textiles, telephones, footwear, wood and wooden products, machinery and equipment.

Despite the rising US-China trade war, experts are still positive about the outlook of local exports to the US. According to the Ministry of Industry and Trade, so far, the structure of imports and exports between the US and Vietnam has not changed overall.

Vietnam mainly exported seafood, textiles, footwear, wood and wood products, computers, electronic products and components, and agricultural products to the US.

Meanwhile, it imported machinery, computers, electrical components, cotton, animal food and materials for animal food production, soybeans, machinery, equipment and tools.

According to local trade experts, the US will remain the key export market for Vietnam in the future. This is a large and high-potential market but also a very demanding one, so local exporters need to improve their competitive ability in business and cooperate with each other in the supply chains for success in exports to this market.

In addition, some commodities such as seafood and agricultural products have faced strict regulations and standards for imported products. To meet the requirements, firms will have to increase production costs, thus losing competitive advantage in the short run.

However, for the long term, those obstacles would be factors forcing local enterprises to implement food safety standards, improving quality and competitive ability of their export products on the world market, according to the experts.

The Ministry of Industry and Trade has encouraged Vietnamese enterprises to jointly build up a supply chain for exporting to the US market, thereby creating added value for export goods. It would also support the enterprises in developing this supply chain.

Over 96,600 new firms established in nine months

More than 96,600 new enterprises were founded in the first nine months of 2018 with a total registered capital of 963.4 trillion VND (41.3 billion USD), representing year-on-year rises of 2.8 percent and 6.7 percent, respectively.

The average registered capital was 10 billion VND (428,000 USD) each firm, up by 3.8 percent, General Director of the General Statistics Office (GSO) Nguyen Bich Lam said on September 28.

Together with more than 1.88 trillion VND worth of additional capital by exiting firms, a total of nearly 2,845.3 trillion VND was poured into the economy in the first nine months of this year.

Besides, nearly 22,900 firms resumed operation in the period, up by 8.5 percent. However, the number of firms halting operations was alarming.

The GSO’s report about socio-economic development in the January-September period showed that more than 73,000 firms halted operation, up by 48.1 percent over the same period last year. Together with 11,500 companies that completed the procedures for dissolution in the period, most of the firms are those with capital of below 10 billion VND. This meant that on average 270 firms halted or stopped operations each day.

A GSO survey founded that firms in the manufacturing and processing industry have different views about the business prospects in the remaining months of this year.

About 52 percent of the surveyed firms said that the trend would be positive while 35.8 percent saw the business would be stable and 11.7 percent forecast more difficult in the last quarter of this year.

EVFTA motivates Bulgarian firms

Bulgarian businesses are looking to enlarge their multi-sector presence in Vietnam to cash in on growing consumer demand and the upcoming tariff slashes under the EU-Vietnam Free Trade Agreement.

For the first time, executives of 23 leading Bulgarian companies arrived to Vietnam last week to explore investment and business opportunities, in preparation for the expected ratification of the EU-Vietnam Free Trade Agreement (EVFTA).

These Bulgarian businesses operate in many sectors that will see tariff reductions, including animal feed, engine lubricants, lighting equipment, drinks, audio and visual equipment, and waste treatment technologies.

“The Vietnamese economy is becoming increasingly important in the world, as it has many FTAs. These firms want to take advantage of the EVFTA’s tariff cuts and Vietnam’s growing demand for consumption, especially for Bulgarian products,” said Bulgarian Minister of Economy Emil Karanikolov at the Vietnam-Bulgaria Business Forum held recent last week in Hanoi.

Irena Vladova, head of exports of Prestige-96 AD, said that her company is one of Bulgaria’s leading foodstuff producers, with famous cake and biscuit brands like Trayana, Mirage, Roden Krai, Hyper, Troy, Spoko, Naya, Muesli, Nasladki, Wellness, and Frunu, which account for 23 per cent of the total market value of the Bulgarian cake and biscuit market.

“The Vietnamese market is extremely attractive and we would be delighted to co-operate with Vietnamese partners to distribute our products here,” Vladova said.

Similarly, Kalina Halatcheva, CEO of Corte Diletto Ltd., said that the company wishes to co-operate with Vietnamese partners in producing high-quality ice cream and confectionery in Vietnam. “Ice cream consumption in Vietnam is very high and we want to establish a firm foothold here,” Halatcheva said.

In addition, Bonmix Ltd. is also looking for Vietnamese partners to trade and produce animal feed in the country. A number of Bulgarian investors also want to establish a commercial presence and open joint-venture companies in Vietnam.

Kyulev Consulting House is one of them and is seeking Vietnamese partners to establish a joint-venture company or a partnership to export its food additives and organic cosmetics to Vietnam.

In another case, Prista Oil Holding EAD is exploring opportunities to establish a joint venture to recycle discharged oil in Vietnam. This company also wants to export lubricants to the country.

Minister Karanikolov said that Bulgaria “fully supports the ratification of the EVFTA,” and is “pushing up the agreement to be signed.” It is expected that the deal will be signed early next year and come into force by mid-2019.

“It is very important to us, to Bulgarian businesses, because it will give us enormous opportunities and make it easier to do business in Vietnam,” Daniel Dobrev, counsellor and head of the Commercial Section under the Bulgarian Embassy to Vietnam, told VIR.

“The EVFTA is not only about tariff reductions, but also about the easing of trade barriers and deals with many topics, including investment. Bulgarian businesses are quite optimistic about the Vietnamese market, which has tremendous consumption power,” he said. “Businesses in Bulgaria expect tariff reductions from the EVFTA and other incentives under the deal to do business in Vietnam.”

The EVFTA will eliminate over 99 per cent of tariff lines. The EU will eliminate duties on thousands of items sourced from Vietnam. Meanwhile, Vietnam will liberalise 65 per cent of import duties on EU exports at the entry into force of the EVFTA, with the remainder of duties being gradually eliminated over a 10-year period.

As of August 20, Bulgaria had nine investment projects in Vietnam registered at $31 million.

Phu Tho province works to tap tourism potential

Bestowed with an array of world and national cultural heritages, the northern midland province of Phu Tho is looking for breakthrough measures to capitalise on its strength to become a must-visit destination for both domestic and international tourists.

According to the provincial Department of Culture, Sports and Tourism, the province is currently home to 1,372 historical and cultural sites, including Hung Kings Temple special relic site, and three UNESCO intangible cultural heritages of the worshipping rituals of the Hung Kings, Xoan folk singing, and ca tru-ceremonial singing.

Xuan Son National Park, which boasts diverse ecosystems, untouched natural beauty, and cultural identities of ethnic people, is a fascinating tourism magnet. It is among 13 national parks in Vietnam that protect large habitats of natural ecosystems.

In addition, Thanh Thuy hot mineral water mine, Tam Giang pagoda, Mother Au Co Temple, and Ao Chau lagoon all together create conditions for the province to branch out various kinds of tourism products like eco-tourism, historical-cultural tourism, and resort tourism.

Grasping local tourism potential, the tourism sector integrated the “Xoan singing in ancient village” into its cultural heritage tours, and the outcomes were incredible as to local tourism destinations like Hung Lo communal house and Lai Len shrine in Viet Tri city, Do Nghia communal house in Lam Thao district has become popular to domestic and foreign visitors.

Besides ancient Xoan singing, visitors will have a chance to have a look at historical and cultural relic sites built during the time of Hung Kings.

Director of the province’s centre for tourism promotion Phung Thi Hoa Le said that thanks to the availability of the tours, more tourists are coming to the locality. The centre welcomes an average 2 million visitors each year, nearly 8,000 of them come to explore the Vietnamese folk music. 

Various travel companies have developed tours featuring Xoan singing like Vietrantour, Saigontourist and Golden tour, she said.

The centre also designs new tourism products to attract more tourists and introduce to travel agencies. Now, Gia Thanh conical hat village in Phu Ninh district, Dich Qua tea hills in Thanh Son district, Tam Giang temple in Viet Tri city, Dao Xa communal house in Thanh Thuy district and Du Yen temple are ready to welcome tourists.

In addition, the province is working to promote products linking local tourism sites like Hung King Temple-Hung Vuong Museum-Hung Lo communal house in Viet Tri city, Xuan Son National Park-Thanh Thuy hot mineral water spring, and Mother Au Co temple- Ao Chau lagoon tourism site. It has joined hands with neighbouring provinces of Lao Cai and Yen Bai to branch out spiritual tours along Hong River.

Signing cooperation programmes with foreign travel companies in the Republic of Korea, Indonesia and India, and partnership in tourism programmes with localities across the country are significant moves to popularize local tourism sites.

This year, the tourism sector of the province eyes to welcome 580,000 visitors, up 5.4 percent from the yearly plan, and expects to earn 3.8 trillion VND (159.6 million USD).

MEMS/Sensors Forum 2018 takes place in HCM City

A forum on Micro-Electro-Mechanical System, or MEMS, convened in Ho Chi Minh City on September 28 under the theme of “Grab the trend – Nurture creations”.

The event was held by the management board of Saigon Hi-tech Park (SHTP).

The MEMS/Sensors Forum 2018, the second of its kind, aimed to build a network of foreign resources to disseminate policies for investment attraction in MEMS technology and to link domestic and international resources to help the city work out a strategy for the development of the technology. 

In his opening remarks, Chairman of the HCM City People’s Committee Nguyen Thanh Phong said as the city acknowledges the importance of the MEMS technology, it has connected with many local and international organisations to establish the HCM City Semiconductor Industry Association (HSIA) and accelerated training to have more skilled workers in the field.

The city has also enhanced cooperation in research and technological transfer from foreign countries and taken actions to attract more investment to MEMS technology in a bid to expand the supply chain and manufacturing of made-in-Vietnam MEMS products, he added.

The official further said that he hopes experts and businesses will put forth solutions to help attract investors to HCM City to set up laboratories and factories of MEMS and sensor products which would prepare the ground for developing the southern hub as a smart city. He vowed to provide all means for enterprises in the sector doing business in the city.

During the forum, delegates focused their discussions on such topics as recommending policies to build an eco-system for MEMS industry; developing high-quality human resources to meet the needs of MEMS industry; towards the commercialization of MEMS products from R&D; and the role of venture capital funds in the MEMS eco-system development.

Southeast Asia is emerging as the world’s leading exporter of electronics but as the region imported a majority of materials (about 92 percent), its product value remains relatively low, said President of SEMI Southeast Asia Ng Kai Fai. He urged the region to move up the value chain, and noted that while Singapore stands out in R&D, Vietnam and Malaysia have strength in MEMS manufacturing, assembly and packaging.

According to the SHTP, since last year, it has licensed four MEMS projects, worth a total of more than 2.12 trillion VND (90 million USD) to locate in the park. They included Greenvity Communication Inc, Onsky Inc, Aipac Inc and Real-time Robotics Vietnam. 

Vietnam promotes food, farm produce at int’l fair in India

Vietnamese businesses are introducing their beverages and farm produce to Indian consumers at 13th Annapoorna World of Food India underway in Mumbai city in India’s western state of Maharashtra. 

It is a major food fair on processed food, including seafood, dairy products and sweets, among others, as well as packaging technologies.

With the support of the Trade Office at the Vietnamese Embassy in India, Vietnam’s firms including the TKK Food Joint Stock Company, Richy Food Southern, A&B Vietnam Investment JSC and a delegation of Binh Thuan province’s Industry and Trade Department, have been attending the event.

It is viewed as one of significant trade promotion activities since Vietnam and India have inked a memorandum of understanding on economic and trade cooperation earlier this year.

A wide range of Vietnamese products are introduced at the exhibition such as sweet, beverages and especially dragon fruit.

Director of Binh Thuan Department of Industry and Trade Do Minh Kinh voiced his hope that Vietnamese businesses will secure numerous contracts and find new partners through the event.

Some firms participating in the fair have discussed the signing of memoranda of understanding on distribution of Vietnamese products with their Indian counterparts. 

The Annapoorna World of Food India, which runs until September 29, is expected to draw about 15,000 visitors.

Covering an area of more than 35,000sq.m, the event draws over 500 companies from 15 countries and territories, including Vietnam, Brazil, Australia, the Republic of Korea, the Netherlands, China, Turkey and Italy.

The fair also hosts various bilateral meetings and seminars with the participation of leaders of Indian food producers and retailers.