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Operational Safety Audit certificate renewed for Jetstar Pacific
The International Air Transport Association (IATA) has renewed its IATA Operational Safety Audit (IOSA) certificate awarded for low-cost carrier Jetstar Pacific, the airline announced on September 11.
Jetstar Pacific has met more than 800 of the latest standards and recommended practices on operational safety management set by the IATA in order to get the accreditation.
Reaching the high safety standards set by the Civil Aviation Authority of Vietnam and the IATA demonstrate the airline’s top priority of ensuring the safety of their passengers and crew members, said Jetstar Pacific General Director Nguyen Quoc Phuong.
The IOSA certification will increase the firm’s reliability in cooperation with international aviation organisations, he noted, adding that it once again exemplifies the enthusiastic efforts made by the airline’s staff to guarantee the passengers’ safety and satisfaction on each flight.
The IATA Operational Safety Audit (IOSA) programme is an internationally-recognised and accepted evaluation system, designed to assess the operational management and control systems of an airline. It is seen by the aviation industry as the global benchmark of safety management.
The audit covers eight functional and operational areas, namely organisation and management system, flight operations, operational control and flight dispatch, aircraft engineering and maintenance, cabin operations, ground handling operations, cargo operations, and security management.
The companies are subsequently included in the IOSA registry for a period of 2 years following an audit carried out by a separate organisation accredited by IATA.
Last week, Jetstar Pacific announced a new codeshare agreement with Dubai-based carrier Emirates, which allows Emirates passengers to enjoy smooth connectivity on domestic flights within Vietnam, in addition to flights connecting Vietnam to Singapore, Thailand, and Australia.
Jetstar Pacific, whose two major shareholders are Vietnam Airlines and Australia-based Qantas Group, is the first budget airline in Vietnam. It operates flights between 16 destinations in Vietnam and 180 others in 18 countries and territories around the world.
RoK firms keen to invest in Hanoi: FKI Chairman
Many investors and enterprises of the Republic of Korea are very interested in doing business in Vietnam in general and in Hanoi in particular, hoping to capitalize on the advantages of the country and the city, said Chairman of the Federation of Korean Industries (FKI) Huh Chang-soo on September 12.
During a reception given by Deputy Chairman of the Hanoi People’s Committee Ngo Van Quy to a visiting FKI delegation, Huh spoke highly of Vietnam’s highest socio-economic growth among the ASEAN countries, political stability, sufficient infrastructure, high-quality human resources, large consumption market and great potential for long-term development.
The official also stressed that information and communication technology, heavy industry and high technology are the fields RoK enterprises are interested in and hope to invest in. RoK companies are fully able to help Vietnam in general and Hanoi in particular catch up with the Fourth Industrial Revolution, he affirmed, adding RoK firms hope Hanoi authorities will help them accelerate and broaden the size of their investment in the city.
Deputy Chairman Quy briefed his guests on the comprehensive conditions of Hanoi and spoke highly of the cooperation and investment from RoK companies to the city. Over the past recent years, the city has recorded an average annual economic growth of 7.5 percent, its rate of trained workers stands at 62 percent.
The official highlighted that attracting foreign investment is a prominent point of Hanoi and RoK is the third largest foreign investor in the city. He expressed his hope to see more RoK investors to come to Hanoi, especially in the fields of transport infrastructure, public transport, environment treatment, health care, education, high-tech and environment-friendly agricultural production, and human resources training to meet requirements of the Fourth Industrial Revolution.-VNA
Developing the private sector and expanding domestic private financial sources are the key targets for Vietnam in order to meet financial demand for the successful implementation of the Sustainable Development Goals (SDGs) of the United Nations.
The recommendation was made in a report evaluating financial conditions for Vietnam’s sustainable development, which was released by the UN Development Programme and the Ministry of Planning and Investment on September 11.
The report provides an overview about changes in the country’s financing for development, with the aim of helping the country improve the mobilisation, utilization and management of finance for development, in a bid to carry out the 2030 Agenda for Sustainable Development of the UN.
It analysed financial structure, characteristics, development trends and investment sources in Vietnam and made comparison with other nations, mainly those in the ASEAN.
Vietnam is advised to extend tax base and ensure better management of State property, as well as enhance the efficiency of State expenditure, public investment and public debt management.
The report underlined the necessity of ensuring the smooth transition from the period of receiving official development assistance, and improving the management of the interactive relations among financial sources, while enhancing the coordination and collaboration among the sources.
Deputy Minister of Planning and Investment Le Quang Manh said that financial sources for development and infrastructure remain the biggest challenge for Vietnam in realising the 2030 Agenda for Sustainable Development.
The report showed rapid changes in financing for development in Vietnam, said Haoliang Xu, Assistant Secretary General of the United Nations and Director of the Regional Bureau for Asia and Pacific at the UNDP.
Investment by the domestic private sector doubled in 2015 compared to that in 2002, but only accounted for 40 percent of total financing for development. Private investment rate of Vietnam stands at 490 USD per person, among the lowest in ASEAN region.
Xu also recommended that Vietnam mobilise more private investment, attract more FDI projects which link domestic firms with global value chains and build suitable financial framework for SDGs implementation.
The Lao Government and Viet Phuong Group (VPG) of Vietnam on September 11 signed a contract for exploiting and processing bauxite ore and building an alumina factory in Sekong province of Laos.
With total investment of about 650 million USD, this will be Vietnam’s biggest investment project in the mining industry of Laos.
The project is located in Dakcheung district of Sekong and will cover nearly 100 sq.km of land. It is part of the roadmap for implementing the agreement on economic, cultural and scientific-technical cooperation between the Vietnamese and Lao Governments.
It not only matches the socio-economic development plans and the expansion of relevant infrastructure in relating localities but will also help ensure security-defence in areas with bauxite mines, particularly in Sekong province and the Cambodia-Laos-Vietnam Development Triangle Area.
At the signing ceremony, VPG General Director Phuong Minh Hue thanked the authorities of Laos and Sekong for supporting her firm over the last 10 years to carry out the agreement on bauxite exploration inked with the Lao Government.
She said the successful implementation of this project will contribute to the development of the Lao economy and help increase the proportion of industry in the local economy and industrialise and modernise the country.
She also called for more support from the Lao Party, Government and people for project implementation and pledged that with its capability and experience, VPG is determined to carry out this project successfully so as to help implement the two countries’ socio-economic development cooperation programme and reinforce their special friendship.
When operational, the project is set to create thousands of jobs for local residents and contribute millions of USD to the local budget each year, Hue added.
Vietnamese enterprises seek Argentina partners
A delegation of Vietnamese businesses had a working visit to Argentina from September 8-11 to seek cooperation and investment opportunities in the South American country.
The trip aimed to help Vietnamese firms understand more about the market, consumption trends, consumers’ demand and requirements of importers in Argentina.
It offered an opportunity for Vietnamese enterprises to make full use of the comprehensive partnership between Vietnam and Argentina to increase two-way trade, which stands at more than 3 billion USD per year, and expand their markets to other Latin American countries.
The trip also helped suggest orientations for Vietnamese enterprises develop new commodities for export.
Speaking at a business forum held at the Argentina's Federal Investment Council with the participation of local firms, head of the delegation Bui Thi Thanh An - deputy head of the Trade Promotion Agency under the Ministry of Industry and Trade said she hopes meetings between the two countries’ enterprises will help the two sides learn more about strengths of each other, thus paving the way for export-import contracts.
Argentina is a relatively developed economy and the third largest in Latin America, but it only ranks 49th in Vietnam's export markets, she said, adding that Argentina enjoys a substantial trade surplus with Vietnam.
Vietnamese firms want to promote collaboration with Argentine partners, thus bringing Vietnamese goods to Argentina to increase Vietnam’s export turnover to this market.
According to Vietnamese Ambassador to Argentina Dang Xuan Dung, it is a difficult market for foreign goods and Vietnamese products in particular, but with efforts made by both sides, the goal to improve trade balance and turnover between the two sides is possible.
At the forum, 15 enterprises from the provinces and cities of Vietnam introduced local partners to products such as furniture, handicrafts, agricultural products and processed food, coffee, electrical equipment, rubber and construction materials.
During its stay, the Vietnamese business delegation worked with representatives from Falabella supermarket group.
Vietnamese businesses met with Falabella's purchasing department, and were introduced to the purchasing process, as well as requirements related to quality and social responsibility.
Falabella lauded Vietnam’s products and pledged to survey factories in Vietnam soon.
New trade, investment chances in Vietnam introduced in Canada
New trade and investment opportunities in Vietnam were introduced to Canadian officials and businesses at a seminar in Ottawa on September 11.
The seminar marked the opening of Vietnam Week in Canada from September 11 to 17 to celebrate Vietnam’s 73rd National Day and 45 years of bilateral diplomatic ties.
It was attended by Donald Bobiash – Assistant Deputy Minister for Asia Pacific of Global Affairs of Canada, Kathleen Donohue – executive director at the Agriculture and Agri-Food Canada, Ladislau Papara – Regional Manager for Asia at the Export Development Canada and Jacques Frémont – President of the University of Ottawa.
The Vietnamese side included Minister of Culture, Sports and Tourism Nguyen Ngoc Thien, Vietnamese Ambassador to Canada Nguyen Duc Hoa and Trade Counsellor Do Thu Huong.
At the event, Assistant Deputy Minister Bobiash said trade ties between the two countries have improved and have room to develop, especially once the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) takes effect.
He expressed his belief that Canada and Vietnam will become important markets of each other, particularly in agriculture, high technology and electronic products.
He told Vietnam News Agency that Canada has products Vietnam needs, and Vietnam also has products his country wants. Vietnam is one of the fastest growing economies, so Canada really wants to invest in and trade with the Southeast Asian nation.
The implementation of the CPTPP will also help reduce barriers and increase business opportunities for the countries’ enterprises, the official added.
Ambassador Nguyen Duc Hoa said bilateral relations, with much potential and existing strengths, are on an upward trend. However, there remain challenges that need to be addressed, such as limited business connectivity and mutual understanding. He voiced his belief that through bilateral meetings and policy seminars, the two sides will expand substantive cooperation and investment opportunities.
Other participants noted the potential for educational cooperation, describing this as an important field helping facilitate connections in other aspects. They said through educational ties, the countries can enhance people-to-people and cultural exchange and understand more about each other’s regulations and policies to bolster relations.
In the future, the Canadian side will diversify educational cooperation activities such as increasing student exchange and collaboration among schools and academies, introducing Canada’s educational programmes to Vietnam, and partnering in research and development.
According to Bobiash, bilateral ties in education have grown fast in recent years, with an increasing number of Vietnamese students in Canada. There are more than 14,000 students from Vietnam in the North American country at present.
The capital city of Hanoi is taking the initiative to maintain its top position in Vietnam in attracting foreign tourists, with all indexes related to tourism rising compared with last year’s corresponding figure.
The municipal Department of Tourism said on September 11 the city welcomed an estimated nearly 20 million tourist arrivals in the first nine months of this year, or a year-on-year rise of 9.2 percent. Of the total, foreign visitors are estimated at 4.3 million, up 20 percent year-on-year, and accounting for nearly 40 percent of the total number of foreign tourists to Vietnam.
Foreign tourists to Hanoi come from nearly 190 nations and territories, with China, the Republic of Korea and Japan continuing to top the list.
Tourist attractions in the capital city include the Thang Long Imperial Citadel, the Huong Son relic site, the Temple of Literature and the Culture-Tourism Village of Vietnamese Ethnic Groups.
Director of the municipal Department of Tourism Tran Duc Hai said the city has upgraded infrastructure and diversified tourism products to better serve tourists.
Recently, the Department debuted a new bilingual portal where tourists can find all the information they need for a trip to the Vietnamese capital.
The site http://tourism.hanoi.gov.vn offers tourism information and services in Vietnamese and English and helps connect users with accredited service providers.
The move is part of the department’s efforts to build Hanoi into a safe, friendly and civilised tourist destination.
Earlier, a 2-million-USD deal between Hanoi and the US television network CNN from 2017 – 2018 has spurred international tourist arrivals to the capital city. TV commercials aired by CNN have been introducing the best of the 1,000-year-old capital to people around the world since early 2017.
In 2017, international tourist arrivals to the city were estimated at 4.95 million, up 23 percent on year and 15 percent higher than its yearly target. The number included 3.53 million accommodated visitors, an annual increase of 22 percent.
This year, Hanoi aims to welcome more than 25.4 million tourists, including 5.5 million foreigners.
The city has also received high rankings and wide coverage by overseas travel firms and magazines. The online marketplace and hospitality service Airbnb named the Vietnamese capital city among the world’s top 10 intriguing travel destinations in 2018. Hanoi was also listed among the world’s top 13 destinations for international travellers in March based on a poll by readers of the US-based Business Insider magazine.
Hanoi’s Old Quarter is a good place for visitors to spend time roaming around, experiencing open-air eateries and hearing the noise of whizzing motorbikes, Business Insider said. Hoan Kiem Lake in the city’s centre provides a peaceful respite from the frenzy, as do numerous Buddhist temples and pagodas, it added.
Last month, the UK’s weekly magazine Hello named Hanoi among seven best backpacking destinations in Asia.
Ideal for travellers on a tight budget, Vietnam's capital city is one of the cheapest destinations for backpackers, the magazine said.
“Not only is accommodation and food remarkably affordable, but you’ll be spoiled for choice of things to see and do in the city, which has a mix of Southeast Asian, Chinese and French influences,” the magazine wrote.
Apart from the many popular places like Hoan Kiem Lake, Hai Ba Trung Temple and Hoa Lo Prison Museum, the magazine highlights a special attraction – bia hoi (local draft beer). It notes that “backpackers often spend their evenings gathered at bia hoi bars across Hanoi, where you’ll find the cheapest beer in the world at around 25p a glass.” -VNA
The national flag carrier Vietnam Airlines and Russia’s flagship carrier Aeroflot have recently signed a Memorandum of Understanding to strengthen cooperation between the two airlines.
Accordingly, they will begin codeshare collaboration on domestic routes in Vietnam and Russia from 2019. The move will optimise bilateral cooperation, bringing more benefits to customers.
Vietnam Airlines is currently operating three direct flights per week between Hanoi and Moscow, with Skytrax’s four-star quality service on its Boeing 787-9 Dreamliner aircraft. Meanwhile, Aeroflot runs nine flights per week between Moscow and Vietnam, with daily flight to Hanoi and twice weekly service to Ho Chi Minh City.
Also, low-cost carrier Jetstar Pacific and the Dubai-based carrier Emirates have announced a new codeshare agreement.
The new partnership allows Emirates passengers to enjoy smooth connectivity on domestic flights within Vietnam, in addition to flights connecting Vietnam to Singapore, Thailand as well as Australia.
The codeshare services from Ho Chi Minh City and Hanoi will connect Emirates passengers to 14 Vietnamese cities.
Emirates will also operate codeshare flights with Jetstar Pacific between the latter’s HCM City hub and Singapore and Bangkok, both of which serve as connections for Emirates passengers continuing their travel to Brisbane, Melbourne or Sydney.
The two carriers said the codeshare partnership will give customers the simplicity of purchasing connecting flights using one reservation, and a smooth ticketing, check-in, boarding, and baggage check experience during the entire journey. Can Tho earns more than 451 million USD from retail, services in August
The Mekong Delta city of Can Tho earned more than 10.5 trillion VND (451.5 million USD) in retail and service revenue in August, up 15 percent year on year, according to the city’s Statistics Office.
Of the total, the private sector contributed more than 6.35 trillion VND (273.05 million USD), a rise of 11.88 percent over the same period last year.
Trade made up 80.77 percent of total revenue with 8.48 trillion VND, an increase of 15.5 percent year on year, while hotel and restaurant earnings were 948.34 billion VND, up 15.93 percent.
The major reason for the rise was diverse promotion programmes run by shops and supermarkets in the summer, which encouraged consumption.
The results pushed total revenue of retail and service in the city in the first eight months of 2018 to 80.8 trillion VND, a jump of 12.91 percent over the same period last year.
However, despite the rise, the consumer price index of the city did not increase sharply at 4.44 percent year on year.
The highest rise was seen in medicine and medical services at 14.44 percent, while upturn was also seen in the prices of goods with 6.29 percent, housing; water and electricity supply, fuel and construction materials with 6.66 percent; and transportation with 8.48 percent.
Consumer goods recording the lowest rise in price were household appliances at only 1.58 percent as many distributors ran promotion programmes.
The prices of other goods and services rose 2.35 percent over the same period last year, while the price of foodstuff increased 2.62 percent due to the rise in prices of pork, poultry meat and aquatic products.
At the same time, culture, entertainment and tourism prices also increased 3.08 percent year on year.
Rice production drops slightly in summer-autumn crop
Southern localities have harvested nearly 962,000 hectares of total rice farmed in the summer-autumn crop this year, equivalent to 88.7 percent of the same crop last year, according to the Ministry of Agriculture and Rural Development (MARD).
The ministry reported that Mekong Delta provinces have completed the harvesting of 883,000 hectares.
This year, rice productivity reached 5.4 tonnes per hectares, 0.03 tonnes higher than the previous year, but production was 23,000 tonnes lower, at 11.2 million tonnes, due to a decrease in rice farming area, according to the ministry.
The drought affecting Ninh Thuan and Binh Thuan early this year made farmers change from rice cultivation to growing other crops due to a fear of water shortages. Meanwhile, rice growing areas in some localities were damaged by floods.
The sharpest decrease was seen in Ninh Thuan with 2,600 hectares; Binh Thuan with 1,300 hectares; Ha Tinh, 1,800 hectares; and Nghe An, 700 hectares.
Sewing and harvest time in the summer-autumn crop this year was also later than last year, affecting the progress of the winter-spring crop.
In the summer-autumn crop, total rice area across the country exceeded 2.04 million hectares, equivalent to 97.3 percent of the previous year, including 166,700 hectares in the north and more than 1.87 million hectares in the south.
Removing EC’s yellow card key to boosting seafood exports
The fishery sector needs to take actions to convince the European Commission (EC) to remove a “yellow card” warning on Vietnamese seafood so as to realise the set target of 9 billion USD in export turnover this year.
Although aquatic product shipments in the first eight months of 2018 rose 6.4 percent year on year to 5.5 billion USD in revenue, the Vietnam Association of Seafood Exporters and Producers (VASEP) said that tough seas are still ahead for the sector to gain 9 to 10 billion USD from exports.
Shrimps, tra fish, and tuna are three key export staples of the sector, therefore, total export revenue will be impacted if there is a decline in shipments of one among those three products.
Shrimp exports have fallen since the second quarter of the year, with a 20 percent drop in July and 17 percent fall in August. As of the end of August, Vietnam earned 2.3 billion USD from shrimp shipments, down 3 percent from the same time last year.
According to Cao Thi Kim Lan, Director of the Binh Dinh Fishery Joint Stock Company, the “yellow card” warning has caused critical damage to her business. The company pockets some 60 million USD from exports every year, 70 percent of which comes from the EU market.
“My company has said “no” with the purchase of illegal, unreported and unregulated (IUU) fishing products. However, it takes too much time to trace origin of the materials”, she said.
At a teleconference held in Hanoi in August, Deputy Prime Minister Trinh Dinh Dung laid stress on the removal of the EC’s “yellow card” warning, saying that it is a leading political task of the Ministry of Agriculture and Rural Development, agencies, and all localities.
He said that this was also an opportunity for the fishery sector to rearrange fishing activities to meet international requirements.
Also, Dung ordered relevant ministries and agencies, and 28 coastal provinces and cities to strictly implement the Prime Minister’s Directive No.45-CT-TTg on urgent tasks and solutions following the EC’s warning.
Minister of Agriculture and Rural Development Nguyen Xuan Cuong believed that carrying out the EC’s nine recommendations related to the fight against IUU fishing was not just meant to lift the “yellow card” but build a sustainable sea-based economy.
The nine recommendations included revision of the legal framework to ensure compliance with international and regional rules applicable to the conservation and management of fishery resources, ensuring the effective implementation and enforcement of the country’s revised laws, and strengthening the effective implementation of international rules and management measures.
“The nine recommendations are positive contents, which help Vietnam build a responsible, sustainable and effective fishing sector. After rapid development, it’s time for Vietnam to shift to sustainable fishing, to improve fishermen’s livelihoods, and protect the environment”, he said.
On October 23, 2017, the EC issued a "yellow card" warning to Vietnam, after the country failed to demonstrate sufficient progress in the fight against fishing worldwide.
A working delegation of the European Commission (EC)’s Directorate-General for Maritime Affairs and Fisheries began a fact-finding trip to Vietnam on May 15 to inspect the implementation of recommendations related to the fight against IUU fishing.
The European Parliament will come to Vietnam to examine the country’s efforts in October, and the inspection team will return in January, 2019 to evaluate one more time before considering the removal of the “yellow card” on Vietnamese seafood.
Vietnam's agriculture confronts challenges from US-China trade warThe war would push goods from the two nations to seek for new importers, which throws new obstacles to Vietnamese agriculture products.
Vietnamese agriculture sector, whose growth saw the ten-year high in the first six months of 2018, is vulnerable to the latest escalations of trade tension between China and the US, said a local economist.
Economist Ngo Tri Long reckoned that products from China and the US, witnessing steep duties from each other, would seek for alternative markets including Vietnam. Hence, Vietnamese agricultural products would face a fiercer competition with foreseen increasing flow of imported goods.
“China remains the biggest buyer of almost all Vietnam’s agricultural products like fruits, rice, seafood, etc. Thus the US-China trade clash would put pressure on China’s imports, a move that can affect Vietnam,” Long noted.
As such, not only Vietnam’s domestic market but also export playground will face fierce competition since a slowdown in import demand of the US and China is predicted for late 2018.
Notably, 75% of Vietnam’s vegetable export worth US$2 billion in first six months of 2018, went to China.
The latest trade war between the US and China was fired by the former last Friday when Washington slapped a 25% duty on about US$34 billion worth of Chinese goods. China retaliated immediately with a similar action, the Asian country’s foreign ministry said.
With the move, US President Donald Trump aims to be in line with pledges he made during his presidential campaign to get tough on China, amid the country's upcoming mid-term election. Yet the tension elscalation in trade can generate unexpectedly negative effects to the global economy that is on strong recovery.
Exports of Vietnam`s key products will surely be affected by the trade war between the US and China - the country`s two largest trade partners, according to experts.
Chairman of the Ho Chi Minh City Textile, Garment, Embroidery, and Knitting Association Pham Xuan Hong said that the US-China trade war's impacts on Vietnamese garment firms are now uncertain as most export orders for 2018 had already been signed before tensions escalated.
However, Hong said, if the tensions prolong, the Vietnamese economy is likely to be hurt as China and the US are the world's largest economies, as well as key trade partners for Vietnam.
Chairman of the Vietnam Leather, Footwear, and Handbag Association Diep Thanh Kiet said the trade war has indirectly hurt the consumption market because American and Chinese consumers have switched to buying necessities instead of more luxury items such as leather, footwear, and handbags - leading to a slump in demand in the two countries.
From another perspective, if major foreign clients decide to move their production orders to Vietnam from China to prevent high taxes, Vietnam's leather, footwear, and handbag exports could grow by 9-10% against 2017.
As Chinese and foreign enterprises operating in China start to seek alternative manufacturing bases, Vietnam is highly likely to become one of the top priority destinations, which would thus create more jobs, and fuel more exports and economic growth. However, in the case of a flood of orders, it is forecast that competition for workers will be fiercer, resulting in higher workforce costs.
Besides, if Chinese manufacturers begin a chain of bringing half-completed products to Vietnam for finishing, then exporting them to the US, Vietnam is likely to be subjected to the US's preventive measures as well.
According to experts, the conflict will greatly impact the structure of the world economy in the future, causing damage for countries where the economy relies heavily on agricultural production like Vietnam.
Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said Vietnam's export goods, especially agro, forestry and seafood products are facing a number of obstacles in major markets, including impacts from the US-China trade war.
Under pressure from the US' increase of import tariffs on Chinese exports, China's agricultural products will have to find alternative markets, experts said.
With great supply and cheap price, Chinese vegetables and fruits will continue to compete with Vietnamese versions. Meanwhile, to avoid China's high import tariff at 25% for US agricultural products, the US is likely to promote exports of agricultural products to Vietnam, including fruit as well as meat of cattle and poultry.
Relating to the pig industry, Deputy Chairman of Animal Husbandry Association of Vietnam Pham Duc Binh said that Vietnamese enterprises have promoted imports of pork due to the high price of pork in the country.
The price of dressed pork in Vietnam ranges from VND48,000-50,000 (US$2.07-US$2.16) per kilo. Meanwhile, the price of slaughtered pork imported into the country is only US$1.5 per kilo. At this price, food processors are forced to increase the imports of pork to meet the production demand in the last months of the year.
In that context, Binh said, the US will be the market that businesses are aiming for, in hopes of gaining a cheaper import price due to the impact of the war. However, with the habit of preferring to consume imported goods, in the long run the Vietnamese livestock will lose on the domestic front.
Foreign banks continue expanding in Vietnam
Vietnam`s market is fast becoming an attractive investment destination for foreign banks.
Wholly foreign-owned banks are prepared to compete with Vietnamese peers for market share through network expansion, especially in major cities and provinces with large industrial parks, according to the Tri Thuc Tre newspaper.
There have been ups and downs for foreign banks' engagement in Vietnam's market in the last two years, in which many have scaled down their investments or even pulled out of the country.
However, things began to change in this year, with more foreign banks expanding their business networks and opening more transaction offices across the country. Some of them have expressed an ambition to get a foothold in Vietnam's market, especially in retail banking.
On July 2, Public Bank Vietnam, a wholly owned subsidiary of Public Bank in Malaysia, was given approval from the State Bank of Vietnam (SBV) to open three additional branches and two more transaction offices this year, increasing its total number of branches in Vietnam to 18.
Similarly, in early June, Woori Bank was also allowed to open five branches and a transaction office in Vietnam, locating in provinces with large industrial parks such as Thai Nguyen, Ha Nam and Binh Duong.
Shinhan Bank Vietnam in the middle of May opened four branches and transaction offices in Hanoi and Ho Chi Minh City, bringing the bank's nationwide network to 30 branches and transactions offices - the largest network of a foreign bank in Vientam.
Also in May, the Hanoi branch of NongHuyp Bank - the largest South Korean bank - and the Ho Chi Minh City branch of Bank of China (Hong Kong) received permission from the SBV's governor to increase charter capital from US$35 million to US$80 million for the former, and from US$80 million to US$100 million for the latter.
Singapore-based DBS Bank in Hanoi and Thailand's JCB International asked for permission to extend their presence for an additional five years in March and April, respectively.
In a meeting with SBV representatives in May, Pisit Serewiwattana, president of Export - Import Bank of Thailand (Eximbank), sought the Vietnamese central bank's support for its first representative office in Vietnam.
Vietnam's market is fast becoming an attractive investment destination for foreign banks. However, there are still some reasons for concern. Thailand-based Krungsri Bank decided to delay its business expansion plan in Vietnam after having studying the market for two years.
According to the bank, a-higher-than-expected expenses for merger and acquisition (M&A) activities, complicated procedures and licenses are some of the reasons behind its decision.
Nevertheless, despite having a rather small business network, most of the nine wholly foreign-owned banks in Vietnam posted a significantly higher revenue compared to domestic banks with similar equity and assets. By expanding their networks, foreign banks are stepping up efforts to compete with domestic banks for a higher market share.
HCM City develops smart tourism in Industry 4.0
Ho Chi Minh City has strived to tap into its tourism development potential, with the support of digital technology, as the city is Vietnam’s leading tourism hub and an attractive destination for international friends.
The advent of the Fourth Industrial Revolution (Industry 4.0) has bolstered development in all fields – including smart tourism based on digital technology application which offers many opportunities to bring more foreign tourists to Vietnam and HCM City in particular.
Nguyen Quoc Ky, Chairman and General Director of Vietravel, said that easy digital technology access and development will create favourable conditions for HCM City’s tourism sector in terms of the dissemination of information, research, and statistics.
According to the municipal Department of Tourism, the application of information technology in tourism is among several breakthrough solutions to improve the competitiveness of Vietnam and HCM City’s tourism.
IT application will be an effective tool for three of the major groups, namely tourism administrators, product and service suppliers, and tourists.
In late 2017, the municipal People’s Committee announced a project to build HCM City into a smart city during the 2017-2020 period, with a vision to 2025.
The project’s four targets include the maintenance of a sustainable economic growth rate towards knowledge economy and digital economy, efficient urban management, improvement of living and working quality, and enhancement of the management of people and organisations.
The project was lauded by tourism experts in HCM City for its pertinent response to the recent Industry 4.0 wave, as well as for helping to foster the city’s competitiveness and charm. Its results are hoped to create many chances for the local tourism sector.
Deputy Director of the municipal Department of Tourism Nguyen Thi Anh Hoa said that 2018 is viewed as the initial stage of the city’s smart tourism development. The tourism sector, therefore, has continued to apply technology and work with travel companies and managing boards of famous destinations to meet the demands and new trends of domestic and foreign travellers.
HCM City has recorded an increasing number of foreign and domestic tourist arrivals over the last 20 years. In particular, the figure rose to nearly 6.4 million in 2017 from only 519,000 in 1993.
In the first eight months of this year, 3.8 million international holidaymakers flocked to the city, while it is expected to welcome 7.5 million visitors by the year’s end.
Bac Ninh – a magnet for FDI attraction
The northern province of Bac Ninh has been considered as a magnet for foreign direct investment (FDI) attraction with the rising pull of investment in recent years.
After 30 years of FDI attraction (1987-2017) and 20 years of re-establishment (1997-2017), the FDI sector of Bac Ninh has become a dynamic economic area with positive contributions to the locality’s socio-economic development.
In 1997, Bac Ninh had only four FDI projects worth nearly 178 million USD. Recently, FDI in the province has increased sharply, reaching a record of 3.5 billion USD in 2017.
As of 2017, the province had nearly 1,140 valid FDI projects with a combined registered capital of over 16 billion USD, ranking sixth out of the 63 localities in terms of investment.
Foreign firms have invested in 13 out of 21 sectors in Bac Ninh, mostly in processing and manufacturing with 902 projects worth 15 billion USD, accounting for 93.5 percent of total investment in the province.
The Republic of Korea is by far the leading investor in the province with 725 projects valued at 11.8 billion USD, accounting for 73.3 percent of total FDI – followed by Japan with 88 projects capitalised at nearly 1.1 billion USD.
Over the past 20 years, FDI has made significant contributions to the socio-economic development of Bac Ninh, helping to increase its gross regional domestic product (GRDP) of the locality.
Bac Ninh’s GRDP in 2017 was nearly 142 trillion VND (6.1 billion USD), 26 times higher than that in 1997. Additionally, the influx of FDI also helped the province to transform its economic structure, and promote the growth of its industrial production, while increasing its exports and budget collection and creating jobs for a large number of local labourers.
According to Director of the provincial Department of Planning and Investment Nguyen Dinh Xuan, Bac Ninh ranks sixth out of 63 localities nationwide in terms of FDI attraction. This is an important foundation for the province to continue to rise in socio-economic growth, heading towards becoming a centrally-run city in 2022.
Currently, Bac Ninh is finalising a proposal to add its high-tech park into the nationwide master plan of high-tech parks.
Bac Ninh has always paid great attention to luring multi-sectoral and multi-national economic groups, he said, adding that the presence of these groups has helped to form specified industrial parks and clusters for the support industry. After several years of operation, some investors have decided to increase investment and expand production.
As such, Bac Ninh has earned the title of becoming a ‘magnet’, luring increasing numbers of big businesses investment projects, stated Xuan.
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