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Italian firms updated on investment opportunities in Vietnam
Investment chances in Vietnam, especially once the EU-Vietnam Free Trade Agreement (EVFTA) takes effect, were introduced to Italian entrepreneurs at a workshop in Rome on November 9.
President of the Italian Chamber of Commerce in Vietnam (ICHAM) Michele D’Ercole and ICHAM Executive Director Pham Hoang Hai informed local investors about Vietnam’s economy at present, including the positive economic growth and foreign investment attraction.
Participants were provided with concrete information about the fields Vietnam is prioritising while Italy holds strength in, along with cooperation prospects and investment chances once the EVFTA is ratified and comes into force. They were also given details of Vietnam’s investment attraction policies and procedures.
ICHAM President Michele D’Ercole told Vietnam News Agency that the Southeast Asian nation has enjoyed growth in both industrial products and foreign investment in recent years.
He noted compared to other ASEAN countries, Vietnam boasts many advantages to attract foreign direct investment, with political stability the biggest strength. While about 60 percent of its population are of working age, low labour cost is also a competitive edge of the country. Vietnam is stepping up training to improve its human resources quality to meet foreign investors’ demand. It is also promoting measures to enhance its competitiveness in different sectors like high technology and renewable energy.
Michele D’Ercole said Italy is very interested in the EVFTA, which will take effect in the near future. At that time, Italian firms will have a number of opportunities to cooperate with Vietnam in the fields they are strong at.
The reduction of tariffs to zero percent under this deal will facilitate bilateral trade. Italy can export numerous commodities to Vietnam such as machines, wood products, fabric and garment, and assist Vietnamese partners to manufacture many items like footwear, leather products, fabric and medical and chemical products. Italian companies can also make use of their scientific and technological strengths to help Vietnam develop some sectors, especially agriculture, he added.
Regarding measures to foster economic links, Trade Counsellor of the Vietnamese Embassy in Italy Nguyen Duc Thanh said the two countries set up the strategic partnership in 2013. They also established a joint economic committee to bolster bilateral cooperation and investment. Despite a continuous growth over the past year, their trade turnover has yet to fully reflect the potential of their businesses.
He suggested both sides increase mutual high-ranking visits to warm up the strategic partnership as well as relations between all-level authorities and sectors. They should also boost economic ties between their localities, for example the cooperation deal between Veneto region and Ba Ria – Vung Tau province or the one between some construction stone mining areas of Italy and Yen Bai province. Additionally, it is needed to tighten connections between the countries’ industries and businesses.
Italy is now the fourth biggest European economic partner of Vietnam. Bilateral trade approximated 5 billion USD in 2017. With total capital of 389 million USD, Italy ranks 31st among 126 countries and territories directly investing in the ASEAN nation.
Vinamilk remains upbeat about future growth
Vietnam Dairy Products JSC (Vinamilk) is optimistic about its future development as the sector still has room to grow, the company’s general director Mai Kieu Lien told an investor meeting on Tuesday.— Photo bizlive.vn
Vietnam Dairy Products JSC (Vinamilk) is optimistic about its future development as the sector still has room to grow, the company’s general director Mai Kieu Lien told an investor meeting on November 6.
“The dairy market has not reached equilibrium yet,” Lien said. “There will be slower growth in the short term, but the market is still developing.”
She said the company’s profit margin is 22 percent, above the sector average of 18 to 20 percent, thanks to its large-scale production, big market share and stable investment policy.
“Winning a greater market share would solve all problems,” she said. It would raise profit margins, but competition would also grow as more players enter the profitable sector.
Lien said Vinamilk would try to win more of the domestic market – of which it currents holds 58 to 59 percent – to compete with local and foreign companies.
In the first nine months of the year, Vinamilk’s market share grew by 0.8 percent, meaning the company is well on its way to meeting its goal of one percent market share growth this year.
The company has reported its combined third quarter revenue rose 3.3 percent over the same period last year to 13.73 trillion VND (610.4 million USD), but its pre-tax profit for the last quarter fell 5.9 percent year on year to 3 trillion VND.
The profit reduction was due to higher selling costs, which increased by 14 percent to 3.41 trillion VND.
In the first nine months of the year, Vinamilk recorded 39.5 trillion VND in revenue, a yearly increase of two percent, and 9.37 trillion VND in pre-tax profit, down 7.8 percent from last year.
The company estimated its profit in 2018 would be equal to last year’s figure of nearly 10.3 trillion VND, boosted by lower input material and operation costs.
The lower numbers for 2018 are due to a decline in market demand for dairy products, not only in Vietam, but also around the world.
Lien said that a decrease in the size of the distribution network affected Vinamilk’s performance.
Seven to eight years ago, the company sold 80-90 percent of its products via distributors, she said. But now, the rate had fallen to just 10-20 percent.
The company now focuses more on retail channels, which account for 80-90 percent of its sales, according to Lien.
Vinamilk would not curb its prices, Lien said, warning that such an act would pull average market prices lower and dampen corporate earning. She also said it could lead to lower spending on advertising, marketing and promotion.
The company would try to keep its stockpiles stable and increase its sales volume, she said.
Vinamilk has recorded good growth rates in exports to overseas markets, especially within Southeast Asia.
Revenues in Cambodia jumped 121 percent over last year in the first nine months of the year and profits grew sevenfold.
The company has plans to double its investment in Cambodia in five years from the current 25 million USD.
ASEAN is the main focus of Vinamilk, and the company’s revenue from selling products in the region is expected to increase 15 percent each year.
PetroVietnam surpasses key financial targets for 2018
The Vietnam National Oil and Gas Group (PetroVietnam) has surpassed its key financial targets for this year, thanks to the rise in petrol prices in October.
In the first 10 months of this year, it added 90.9 trillion VND (3.95 billion USD) to the State budget, up 23 percent from the yearly plan. Its total revenue hit 499.5 trillion VND, 21 percent higher than the 10-month plan, and up nearly 24 percent from the same period last year.
The group tapped 20.1 million tonnes of oil, exceeding the plan’s estimates by about 5 percent. The total volume of gas hit 8.39 billion cu.m, up 4.1 percent; while fertiliser output reached 1.38 million tonnes, up 7.2 percent.
Total petrol production was equivalent to 84.2 percent of the plan, amounting to 7.46 million tonnes.
PetroVietnam ranked first in the 2018 list of 500 Vietnamese firms with the highest profits.
It registered to donate over 250 billion VND (11.2 million USD) to the charity programme “Joining Hands for the Poor” this year.
In October, the Dung Quat biofuel plant resumed operations after three years. Five days after its resumption, the plant had churned out its first batch of E100 ethanol fuel.
SOE divestment and equitization present opportunities for investors
Capital inflow into Vietnam, including both direct and indirect foreign investment, has been increasing over the past few years.
Vietnam’s stock market grew 70% in terms of scale and 48% in the main index last year, presenting good opportunities for investors, according to Tran Van Dung, chairman of the State Securities Commission of Vietnam (SSC), the country's stock market watchdog.
Capital inflow, both direct and indirect foreign investment, into Vietnam has been increasing over the past few years, said Dung in a quick exchange with local media last week.
According to Dung, the market capitalization of the equity market has increased from 30% - 32% of the country's GDP five years ago to 70% as of 2017, reaching the government’s target set for 2020.
Five years ago, Vietnam only had one enterprise capitalized over US$1 billion, and the figure has now reached 20, Dung continued.
Statistics also showed that, in 2017 and the first six months of 2018, around 90% of listed companies have been generating profits. Meanwhile, capital inflow from the US and Japan into Vietnamese stock market has doubled over the past few years. In 2017 and the first half of 2018, investment capital from South Korea to Vietnam has been at the top among other countries.
Dung also informed that the Vietnamese government would push forward with the equitization of 64 state-owned enterprises (SOEs) and divesting state capital from others 181 in 2018, in turn opening more opportunities for investors.
Vietnam's effort to raise funds from the public-sector reforms is expected to triple in 2018 - 2020 compared to levels seen in the 2011 - 2017 period, according to Saigon Securities Inc (SSI), the largest brokerage house in the country.
Specifically, the total proceeds from initial public offerings (IPOs) and the share sales of SOEs in the next two years are expected to reach US$26.3 billion, 2.75 times higher than the sum raised for the whole period between 2011 and 2017.
Of the total, the value of IPOs will reach US$9.7 billion, while the total amount of divestment could hit US$16.6 billion.
"Vietnam could end up being the only country in the world that embarks on a new wave of SOE reform in 2018 - 2020, placing large and profitable SOEs on public offer," stated SSI.
With the establishment of the State Capital Management Committee in February, the government plans to make its SOEs more compliant with market principles and practices, according to SSI.
The divestment and equitization process of SOEs in 2017 contributed over VND144 trillion (US$6.34 billion) to the state budget, 2.41 times higher than the target set by the National Assembly, informed a 2017 report on utilizing state capital and assets at SOEs released on May 17. Among the most notable deals, the government sold a 53.6% stake in Sabeco for US$4.89 billion.
Over the last five years, the USAID GIG program has supported the development of 25 laws and 50 regulations based on evidence and best practices.
Today, the United States Agency for International Development (USAID) and Ministry of Justice (MOJ) hosted an event to mark the completion of the USAID Governance For Inclusive Growth (GIG) program.
US Ambassador to Vietnam Daniel J. Kritenbrink, USAID/Vietnam Mission Director Michael Greene, and Vietnam's Vice Minister of Justice Nguyen Khanh Ngoc opened the event.
It was attended by about 250 representatives from government ministries, business associations, social organizations, international organizations, and news agencies.
The USAID Governance for Inclusive Growth program, with a planned budget of US$44 million, worked with the public and private sector in Vietnam to address key reform issues on trade and economic growth, with an emphasis on improving the legal and regulatory environment, systems of accountability, and inclusive growth that benefits all citizens in Vietnam.
Operating under the leadership of the MOJ, USAID collaborated with the Ministries of Finance, Planning and Investment, Industry and Trade, as well as the National Assembly and State Audit of Vietnam to implement the Government of Vietnam’s reform priorities.
Over the last five years, the USAID GIG program has supported the development of 25 laws and 50 regulations based on evidence and best practices. USAID has also supported Vietnam to improve its economic competitiveness by reducing business regulations and improving coordination among ministries, helping Vietnam to improve its ranking in the World Bank’s Doing Business Report, which has risen from 91 to 69 in the past three years.
In addition, USAID has provided forums for citizens, civil society organizations, business associations, universities, media, and others at the central, provincial, and community levels to provide input to improve the quality of laws and regulations.
ThaiBev earns over US$100 million in net profit after Sabeco investment
The amount did not include the 35% of prepayment of 2018 dividends or VND2.24 trillion (US$96.49 million) that ThaiBev is expected to receive in the remaining months of 2018.
Six months since ThaiBev acquired a major stake in Saigon Beer Alcohol Beverage Corp (Sabeco), Vietnam’s leading brewer contributed VND20.32 trillion (US$875.19 million) in revenue and net profit of VND2.36 trillion (US$101.64 million) to Thailand’s beverage producer.
The amount did not include the 35% of prepayment of 2018 dividends or VND2.24 trillion (US$96.49 million) that ThaiBev is expected to receive in the remaining months of 2018, VnExpress cited ThaiBev's financial statement as saying.
Thanks to positive business performance of Sabeco and its affiliates, ThaiBev – controlled by tycoon Charoen Sirivadhanabhakdi – posted net revenue from sales of goods in the January – June period at VND122.37 trillion (US$5.27 billion), up 22% year-on-year.
Of the total, sales of liquor products amounted to VND82.44 trillion (US$3.55 billion), contributing 67.36% of the total revenue, followed by beer products with 40% of revenue, equivalent to VND69.78 trillion (US$3 billion).
According to ThaiBev, while the beer consumption in the Southeast Asia has been slowing down, Sabeco still maintains an impressive growth rate.
Last December, the Vietnamese government sold nearly 54% stake or 343.42 million shares in Sabeco to ThaiBev through its local unit Vietnam Beverage for US$4.89 billion.
ThaiBev secured the fund necessary for the deal by borrowing US$3.05 billion from local banks, including Bangkok Bank, Kasikornbank Public, Krung Thai Bank, Bank of Ayudhya, and Siam Commercial Bank, with two-year terms.
BeerCo, ThaiBev’s wholly-owned subsidiary, also borrowed US$1.95 billion from Mizuho Bank and Standard Chartered Bank’s Singapore branch to help finance the deal.
In 2017, Sabeco alone produced 1.77 billion liters of beer, an increase of 6.6% year-on-year, while the second largest domestic brewer, Habeco (18% market share), brewed 657.6 million liters, down 6.5%.
Price Management Department under the Ministry of Finance yesterday reported the use and leftover amount of petrol price stabilization fund in the third quarter this year.
According to the report, the fund leftover topped VND3,812 billion at the end of the second quarter.
In the third quarter, VND2,042 billion of the funds was used. Businesses’ contribution to the fund reached VND1,264 billion and interest on the fund’s remaining amount was over VND4.7 billion.
Therefore, the fund has over VND3,039 billion ($130.46 million) left as of September 30.
Festival to promote Buon Ma Thuot coffee brand
The 7th Buon Ma Thuot coffee festival will be held from March 9-16, 2019 in the Central Highland province of Dak Lak, aiming to promote Buon Ma Thuot coffee brand and improve the value of Vietnamese coffee.
The project, approved by Dak Lak Provincial People's Committee, also aim to honour domestic coffee growers and traders while encouraging the community to join hands and work together to create and develop coffee culture, particularly in Dak Lak, but also in Vietnam in general.
The festival will feature a diverse range of activities including an exhibition on coffee, a seminar on the development of Vietnamese specialty coffee, an exhibition on the world’s coffee history, a street festival, a contest for farmers, a Vietnamese specialty coffee quality competition, free coffee tasting sessions, a Buon Don elephant festival, and an international paragliding contest.
Through the chain of activities, the festival is expected to continue to introduce the image, potential and strength of the province; promote investment in processing coffee and agricultural products in the area; and attract domestic and foreign tourists to Dak Lak.
The event is also one of the practical activities commemorating the 44th anniversary of the Buon Ma Thuot Victory (March 10, 1975 - March 10, 2019).
Transport accounts for 59 percent logistics costs
Transport costs account for 59 percent of logistics costs, according to calculation by Competitive and Business Environment Board under Central Institute for Economic Management.
Of transport costs, 77 percent are related to roads and 5-10 percent are unofficial costs.
At present, it costs VND5.8 million to transport a 40 feet container from HCMC to the northern border gate of Tan Thanh. It approximates VND4.6 million (US$200) from HCMC to California by sea.
Besides road maintenance fee of VND17.5 million a vehicle a year, businesses have to pay BOT toll fee. Furthermore, they must make payment for broken-down vehicles which are not in traffic.
Experts blame the high transport costs for the weak connection among modes of transport. The weak connection has made it unable to fully exploit potentials of each mode and share pressure for road system.
Multimodal transport has not developed because of unreasonably planned and arranged infrastructure system, they added.
Vietnam sees FDI disbursement increase
Vietnam has seen a slight decline in foreign direct investment (FDI) but a rise in this capital disbursement, according to the General Statistics Office (GSO).
The GSO reported that in the first ten months of this year, Vietnam lured USD28-billion in FDI, down 1.2% on-year. Of the sum, USD15.1 billion was disbursed, up 6.3% on-year.
During the period, FDI mostly focused on 18 sectors with processing and manufacturing sector accounting for 47.5% of the total registered capital. It was followed by real estate with 20.4% and retail with 8.5%.
The FDI came from 105 countries and territories. Japan topped the list with USD7.6 billion, making up 27.5% of the total. The runners-up were South Korea with USD6.5 billion and Singapore with USD3.9 billion.
Between January and October, Hanoi topped among 59 localities nationwide in pulling in FDI with USD6.15 billion. HCM City came second with USD4.6 billion and Ba Ria-Vung Tau Province with USD2.4 billion.
The country has been forecasted to attract USD30 billion in FDI this year.
Prime Minister Nguyen Xuan Phuc recently cited a report conducted by the United Nations Conference on Trade and Development as saying that Vietnam was among the top 12 countries worldwide in luring FDI.
The government leader, however, pointed out that most of FDI enterprises in Vietnam still use less modern technology. The number of FDI companies using high technology remains low. Many of them spend only a modest investment in research and development activities.
The PM highlighted the necessity to prioritise hi-tech FDI projects for the high economic value and environmental protection.
Vietnam sees imported cars up 58% y/y in OctoberVietnam imported 14,261 cars worth over US$295 million as of October, up 58% in quantity and 54% in value from the 6,000 cars and US$135 million imported in the same period last year, according to the General Department of Vietnam Customs (GDVC).
Under-nine-seat cars made up the largest proportion with 8,875 units, contributing 62.2% of the total imported volume, followed by trucks with 4,850 units, accounting for 34%, while the remaining were over-nine-seat cars and other types of motorized vehicles.
In October, cars bought from Thailand and Indonesia accounted for 75% of total cars imported to Vietnam, reaching 8,605 units or 45% from Thailand, and 4,296 units or 30% from Indonesia. Vietnam also imported cars from others markets such as China, Japan, the US, Germany, among others.
Customs statistics also showed that US$342.8 million worth of car accessories and parts were imported to Vietnam so far this year. Suppliers of those products were mainly from Japan with US$80.8 million, accounting for 24% of the total value, South Korea US$73.9 million or 22%, Thailand US$61.5 million or 18%.
Vietnam imported 3,188 cars worth US$68.4 million from October 26 to November 2, down 0.8% in quantity but up 6.5% in value from the amount of 3,214 cars worth US$64.2 million imported in the previous week.
During the period, Thailand and Indonesia shipped 1,743 and 1,287 units to Vietnam, respectively, cars bought from these two markets made up 95% of total cars imported to Vietnam.
Vietnam also imported accessories and parts worth US$72 million last week, up 8% week-on-week, mainly from Japan with US$18 million, South Korea with US$15 million, Thailand with US$12.8 million, China with US$10.4 million, Indonesia with US$5.3 million, and India with US$3.4 million.
It is the first major business decision after Lotte Chairman Shin Dong-bin was released from jail following an appeals trial, South Korean media reported.
South Korea's Lotte Group on October 23 announced that it will inject around W50 trillion (US$44 billion) in all of its foreign and domestic business units over the next five years, including Vietnam, said the group in a statement.
The corporation said of its investment plan that W20 trillion (US$17.64 billion), or 40%, will be allocated to the chemical business, with W12.5 trillion (US$11.02 billion), or 25%, planned for its retail arm, while creating 70,000 new jobs during the period.
It is the first major business decision after Lotte Chairman Shin Dong-bin was released from jail following an appeals trial.
He served an eight-month jail term on bribery charges in connection with a massive corruption scandal involving ousted President Park Geun-hye and her friend Choi Soon-sil.
Another 10% and 25% of the planned investment, respectively, will be spent on its food and tourism businesses.
Lotte Corp., the business group's holding firm, said that W12 trillion (US$10.58 billion) has been earmarked for next year, particularly on enhancing the online business in the retail sector and expanding facilities for its chemical business in South Korea, Indonesia and the US.
It will be the largest amount to be invested by the company in a single year, it said.
Lotte said it will focus on the digital transformation of its retail services using new technologies, such as big data and artificial intelligence, as well as developing new shopping malls.
On the global front, Lotte will continue to expand its businesses in Indonesia and Vietnam, while pushing for entry into new markets, it said.
Since 2008 to present, Lotte, through its division Lotte Mart, has invested VND8.9 trillion (US$389.3 million) in Vietnam in infrastructure development of 13 malls and super markets, as well as other business expenses including advertisement, marketing, promotion, administration.
PV Power targets output of more than 5.6 billion kWh in Q4
PetroVietnam Power Corporation (PV Power) targeted to reach a production output of more than 5.6 billion kWh in the last quarter of this year to fulfill the full year’s plan.
The company reported that it produced a total output of 16.038 billion kWh from January to the end of September, meeting 74 per cent of the plan for the full year.
PV Power’s electricity output mainly came from Ca Mau 1, Ca Mau 2, Nhon Trach 1, Nhon Trach 2 and Vung Ang 1 plants.
PV Power also owned Nam Cat, Hua Na and Dakdrinh hydroelectric plants.
PV Power said that it would continue to hasten capital divestment from inefficient projects.
After successfully organising an initial public offering in January, PV Power reported revenue and pre-tax profit of VND24.8 trillion (US$1.06 billion) and VND1.8 trillion, respectively in the first nine months of the year, equivalent to 106 per cent and 124 per cent of the annual plant.
It earned after-tax profit of VND1.4 trillion and contributed more than VND1 trillion to the State budget.
PV Power produces around 10 per cent of Viet Nam’s total power output.
Vietnam leading IT firm VNG posts pre-tax profit down 52% in Jan-Sep
Vietnam`s leading technology firm VNG posted pre-tax profit in the first nine months of 2018 at nearly VND500 billion (US$21.34 million), down 52% year-on-year, according to the firm’s quarterly consolidated financial statement.
During the January – September period, there were no significant changes in VNG’s revenue and gross profit, reaching VND3.1 trillion (US$132.3 million) and VND1.8 trillion (US$76.81 million), respectively.
Nevertheless, the IT firm saw its selling and administrative expenses increase by 72% and 27% year-on-year during the period at VND853 billion (US$36.4 million) and VND382 billion (US$16.3 million), respectively.
Moreover, losses incurred by its affiliates amounted to VND152 billion (US$6.48 million), doubling the figure recorded in the same period last year.
In the third quarter of 2018, VNG reported revenue of VND1.1 trillion (US$46.93 million) with the gross profit margin of 55%, equivalent to the corresponding period in 2017. However, due to large losses incurred in the period, VNG’s pre-tax profit decreased by 40% year-on-year to VND180 billion (US$7.68 million).
In 2018, VNG set revenue target of VND5 trillion (US$218.7 million), up 17.3% year on year, and aims for an after-tax profit of VND549 billion (US$24 million), significantly lower than the figure of VND938 billion (US$40.01 million) recorded in 2017.
In the coming time, the company will diversify its business lines, prioritizing in four main fields of e-wallet, smart phones development, setting up the company's ecosystem for its products, and e-commerce.
Along with traditional digital content development, VNG will focus its resources on developing new technologies, including artificial intelligence, machine learning, big data, virtual reality, and e-payment.
Legal conformity and persistence key to exporting goods to U.S.
Two entrepreneurs doing business in the United States have advised Mekong Delta firms to work in line with the law and to be persistent in their efforts if they wish to export their products to the world’s largest economy.
The Can Tho Promotion Agency held a roundtable discussion yesterday, which put forward ways to boost exports of agricultural products in Can Tho City and the Mekong Delta as a whole to the United States. The event gathered some 100 firms based in the Mekong Delta.
Having lived in the United States for 38 years, Simon Ky Tran, director of Bfarmusa Company, is an experienced consultant for Vietnamese firms, helping them export their agricultural products to the United States successfully. This includes rice in Can Tho City and sugar of Thanh Thanh Cong Group in Tay Ninh Province.
He noted that it took two years for Thanh Thanh Cong to be able to ship its sugar products to the United States. However, the group was still persistent in following the relevant procedures in line with the prevailing regulations of the two countries, especially the American legal system.
Vietnamese firms should guarantee the quality of their agricultural products and secure payment methods, according to the director.
He further explained that their products should be completely natural, without any chemicals. They should have clear seedling origins and use clean fertilizer; clean farming methods; and clean harvesting, processing, preservation and export processes.
With organic products, the United States has more stringent regulations, such as regular checks at their farms, he added.
He stressed that local firms should not offer sales on credit for the sake of their transaction safety. Only if they receive credit guarantees from banks should they ship their products to their U.S. partners.
Nguyen Vu Minh Tam, director of GOL Co., Ltd – a company specializing in helping firms obtain U.S. Food and Drug Administration (FDA) certificates – advised local firms to speed up their ecommerce initiatives in the advent of the Fourth Industrial Revolution.
Tam explained that this kind of business would help firms reduce their costs, increase their profitability, shorten their transaction time and reach the maximum number of potential customers in the United States.
She noted that agricultural producers should pay more attention to the market needs and legal framework of the United States. In addition to the FDA’s mandatory criteria, there are other import licenses required by the U.S. Department of Agriculture and other requirements in line with the laws of each U.S. state or those set by buyers.
She also advised local firms to create their own brands to add more value to their products. Thanks to their brands, some Vietnamese firms such as Trung Nguyen Group and CJ Cau Tre Foods JSC have gained a firm foothold in the United States and have even expanded their market there.
She noted that the value of Vietnamese products to the United States had reached roughly US$41.6 billion last year, making up some 20% of the country’s export revenue.
EuroCham to honor excellent European firms
The European Chamber of Commerce in Vietnam (EuroCham) on November 16 will hold the Gala Dinner & Business Awards to celebrate 20 years of its operations in Vietnam, with five awards for companies from all sectors and industries.
The first award is Business Excellence, which recognizes an enterprise that has demonstrated long-term growth and success, responsibility and profitability and that has made a real contribution to Vietnam over the last two decades.
The Entrepreneurship award is given to the firm that has been the most innovative, creative and competitive and has overcome challenges to become successful in Vietnam.
The three remaining awards are Alumni, which recognizes a Vietnamese citizen who has made the largest contribution to Vietnam after being educated in Europe; Best Start-Up, which will be awarded to the most innovative, enterprising and forward-thinking new European firm in Vietnam; and Sustainability Initiatives, given to an enterprise that has best applied sustainable practices and reduced its environmental impact in Vietnam.
An independent panel of judges will draw up a shortlist from hundreds of enterprises and nominated individuals, and the winner of each award will be announced on the night of the event.
The EuroCham Gala Dinner & Business Awards, taking place at the Gem Centre in Ho Chi Minh City, will receive hundreds of business leaders, investors and ambassadors from across Europe and Vietnam.
To register for the event or for further information, guests can visit the website https://eurochamvn.eventbank.com/event/9998/home.html, write to nhung@eurochamvn.org or contact 028 3872715.
Demand drives up rent in HCM City’s retail market: C&W
Thanks to high demand for retail space, the vacancy rate fell to 6% in Q3/2018 from 11% in the same period last year, Cushman & Wakefield Vietnam’s report showed.
Market-wide average rent in Ho Chi Minh City (HCM City) in the third quarter (Q3) of 2018 climbed 5.6% on quarter and 7.4% on year to approximately VND1.27 million (US$54.5) per square meter per month (sq.m/m) due to high demand for retail outlets, Cushman & Wakefield (C&W) Vietnam said in a report.
Tenancy mixes on food and beverage (F&B) in shopping malls are on the rise, driving up rental during the quarter, according to Vo Thi Phuong Mai, head of Retail at Cushman & Wakefield Vietnam.
Over 40% of tenants in The Estella Place are F&B brands. Golden Gate, Red Sun and Mesa Group are anchor tenants while Vincom Retail continues to expand their reach across the country by acquiring Fivimart, a 23-supermarket chain in the north, Phuong said.
Retailers are ready for revising the tenancy mix at shopping malls as well as inefficient lines, she noted.
In addition, middle class and fast fashion brands continue to target the Vietnamese retail market. In 2019-2020, French Decathlon and Japanese Uniqlo plan to open their first stores in Hanoi and Ho Chi Minh City, Mai added.
Thanks to high demand for retail space, the vacancy rate fell to 6% in Q3/2018 from 11% in the same period last year, Cushman & Wakefield Vietnam’s report showed.
The vacancy rate varied among different submarkets like department store (5.7%), shopping center (7.0%), retail podium (10.1%), and bazaar (6.1%).
The average asking rent was among US$32.1/sq.m/m for retail podium, US$48.8/sq.m/m for shopping center, US$73.1/sq.m/m for department store, and US$172.7/sq.m/m for bazaar.
According to the report, a number of big projects namely Crescent Mall – phase 2, Aeon Mall Tan Phu (expansion), and Elite Mall are under construction and will be available for sales in 2019 and 2020, supplying a total of 120,000 sq.m.
Meanwhile, the retail stock in Q3/2018 was recorded at more than 1.26 million sq.m, up 2.2% on quarter and 6.6% on year, whereas, the overall occupancy rate grew 1 percentage point on quarter and 4 percentage points on year to 93%, showed the report.
Aquatic product exports rake in 7.24 billion USD in 10 months
Vietnam exported 7.24 billion USD worth of aquatic products in the past 10 months, up 6.2 percent year-on-year, reported the Agro Processing Market Development Authority (Agrotrade) under the Ministry of Agriculture and Rural Development.
In October alone, the country’s aquatic product exports raked in 873 million USD, according to Agrotrade.
The US, Japan, China and the Republic of Korea were the fourth biggest importers of Vietnamese aquatic products in the January-September period, accounting for 54.5 percent of the country’s total export value.
Vietnam’s aquatic product export earnings from the British, Thai, Dutch, and Korean markets saw the highest growth, up 20.3 percent, 16.9 percent, 15.8 percent and 13.1 percent respectively.
During the 10-month period, the country imported 1.4 billion USD worth of aquatic products, an annual increase of 21.6 percent. The figure included 141 million USD in October.
Agrotrade said global shrimp prices are showing signs of recovery, pushing up prices in Vietnam. Vietnamese processors have also signed big contracts serving year-end holiday demands.
Vietnam is seeing more opportunities in the US market, which has increased its shrimp purchase in preparation for Christmas since September. The US-China trade war has yet to be cooled down. The US has recently announced lower anti-dumping tariffs on Vietnamese shrimp and tra fish imports. To meet domestic demand, China also reduced its tariffs on aquatic product imports from the Association of Southeast Asian Nations, of which Vietnam is a member.
The prices of Vietnamese shrimp and Tra fish is projected to go up in line with higher export demands during the year-end period.
Eximbank launches ChatBot application for 24/7 customer care
With the rapid development of the Fourth Industrial Revolution in recent years, the banking and finance industry has rapidly adopted advanced technologies. ChatBot is one specific application that has been launched by many banks and financial institutions around the world as well as in Vietnam to provide prompt support to customers.
On October 24, 2018, Eximbank launched its ChatBot online support tool developed from the artificial intelligence platform FPT.AI to serve customers 24/7, presented with the name ‘Mai’ on its website as well as its Facebook fanpage. This pilot project will operate for at least one month in order to better understand customer demand and gather feedback for continuous improvement.
With this application, frequently asked questions about Eximbank’s products and services will be answered immediately by Mai. Mai’s database will be available no matter the time of day, guiding users to the content they need or giving them the contact they are looking for. FPT IS Information System Company is the vendor that provides and deploys this ChatBot system.
"In essence, our new ‘Mai’ ChatBot is an online tool that can act as a professional consultant for enhanced customer care. Since June 2018, Eximbank has been co-operating with FPT IS to build this application. So far, we have built an application to serve customers’ most popular demands, such as: advice on bank cards issued by Eximbank, promotion programmes for depositors, the location of branches, transaction offices, and ATMs, and other frequently asked questions. We believe this exciting new technology will provide customers with faster and higher quality service experiences in the digital age," said Rahn Wood, Eximbank’s representative.
ChatBot is built based on the newest technology waves of Artificial Intelligence, machine learning, natural language processing, and Big Data. During this initial stage, the machine learning technology will automatically record questions that the ChatBot cannot answer and after Eximbank’s staff respond to the customer, the new data will be used to train Eximbank’s ChatBot to answer similar questions afterward. In the medium term, the ChatBot will be automatically trained to improve and develop more functions to meet the higher requirements of customers.
Duong Dung Trieu, chairman of FPT IS, said: "In Vietnam, FPT is the pioneer in developing artificial intelligence platforms that allow developers to create chatbots easily. Thanks to the application of the most advanced technologies, such as natural language processing and artificial intelligence, the ChatBot developed from the FPT.AI platform can understand customers’ intentions and the content they need, from there providing accurate feedback, helping businesses stay connected with customers, and thereby reducing the proportion of unsatisfied customers. So far, more than 1,000 chatbot applications have been created on the FPT.AI platform. These applications enhance the user experience in many areas, such as telecommunications, e-commerce, banking or public administration, and help reduce operational costs for businesses."
In early September, Eximbank also deployed the Infosys Finacle Core Banking software solution to replace its old Core Banking system. This transformation aims to develop more products and services, tighten internal management, and align the banking system, creating a foundation to improve customer service, risk management, and make services more efficient.
The launch of Eximbank’s ChatBot application is a significant first step in building up its digital capabilities as well as a modern and dynamic orientation in the 4.0 era.
Thua Thien-Hue welcomes 3.7 million visitors in 10 months
The central province of Thua Thien-Hue received 3.7 million visitors during January-October, a year-on-year surge of 21 percent.
Of the total, there were 1.55 million foreigners, up 29.7 percent from the same time last year and equal to the number of international arrivals in 2017. Visitors from the Republic of Korea topped the pile, accounting for one third of the total foreign visitors. Most of them flied to Hue for sightseeing, enjoying local dishes, and shopping.
The locality also saw stable growth in number of tourists from France, Germany and the UK.
According to Nguyen Dung, Vice Chairman of the provincial People’s Committee, the province targets 4-4.2 million tourists this year, 10-12 percent higher than in 2017. Tourism revenue is expected to rise 15-16 percent year-on-year to 4-4.2 trillion VND (172 million- 180.7 million USD).
From the outset of the year, the province has carried out various activities to attract visitors, with the 10th Hue Festival in April considered the most notable event.
In February, along with lighting up the historic flag tower with 1,000 LED lights, the province installed four canon-like fire guns at the tower which can fire real shots. The gun designs resemble the canons made by the Nguyen dynasty.
The Hue Monument Conservation Centre in July launched an art programme titled “Royal Inspiration” in Hue Imperial City by night and Change of Guards ceremony at Ngo Mon Gate, creating a highlight for the Hue Imperial Palace at night.
A cultural space has been formed on Le Loi street while more food zones and art activities are arranged on Pham Ngu Lao, Vo Thi Sau and Chu Van An streets.
Particularly, a 400-metre ironwood-floored pedestrian bridge along the southern bank of Huong River is believed to woo a huge crowd of visitors.
Also, the locality has channeled focus on upgrading its tourism website in both Vietnamese and English, and making the website linked with those of the Vietnam National Administration of Tourism and its partners to popularise local tourism.
In addition, it has paid due attention to upgrading local infrastructure and developing tourism products linking famous tourist attractions in the East-West Economic Corridor.
Hue, the formal imperial capital of Vietnam for hundreds of years, is home to five heritages recognised by the UNESCO, including the ancient citadel relic complex- a World Cultural Heritage site, Hue royal court music- an intangible cultural heritage item, Nguyen Dynasty’s wood blocks-a documentary heritage item, Nguyen Dynasty’s royal administrative documents-part of the Asia-Pacific Register of UNESCO’s Memory of the World Programme, and literature on Hue royal architecture-a documentary heritage.
The Hue imperial citadel relic site has been ranked second among top seven tourism attractions of Vietnam in 2017.
Binh Duong to pilot ILO’s New Industrial Framework project
The Labour Confederation of Binh Duong has asked for cooperation from the Binh Duong Furniture Association (BIFA) to pilot a project to develop a New Industrial Relations Framework (NIRF/ILO project) in the southern province.
It came following a meeting between representatives from the Labour Confederation of Binh Duong, the BIFA, the Vietnam Chamber of Commerce and Industry (VCCI) and timber producers from Tan Uyen town in the province on November 5.
The project ultimately aspires to promote the development of an effective legal and institutional foundation for a NIRF in Vietnam compatible with the International Labour Organisation (ILO)’s Declaration on Fundamental Principles and Rights at Work, with a specific focus on the ILO’s Convention 87 on Freedom of Association and Protection of the Right to Organisation and Convention 98 on Right to Organise and Collective Bargaining and in full consideration of national conditions, according to national project coordinator Nguyen Ba Lam.
Its short-term objectives are to foster bipartite and tripartite social dialogues for the development of a NIRF through experience sharing and practical lessons and to enhance the engagement of the Vietnam General Confederation of Labour (VGCL) in revising labour code and trade unions’ reforms.
It also aims to strengthen the capacity of trade unions in representing workers at all levels, especially in relation to collective bargaining and social dialogue, and improve cooperation among firms as well as employer-employee relationship in areas where the project is piloted.
The provincial Labour Confederation wanted the BIFA to help it find eight timber producers in Tan Uyen to take part in the project. In addition, the BIFA was asked to raise awareness among its members of benefits of the collective bargaining for both employers and employees, one of which is to reduce collective labour disputes and prevent labour instability.
The project will be expanded into other areas in the province if the pilot scheme proves effective in Tan Uyen.
Statistics show that 956 out of the 2,595 enterprises in Binh Duong, or 36.8 percent, have signed a collecting bargaining agreement.
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