Can Tho retail sales, services up sharply     

Can Tho City’s retail sales and services in the first eight months of the year were worth more than VND80.806 trillion (US$3.46 million), a year-on-year increase of 12.91 per cent, according to the municipal Statistical Office.

According to the agency, in the summer months supermarkets and shops had launched promotion programmes, which stimulated consumption and pushed up retail sales.

Despite the prolonged rain and storms, both traditional markets and supermarkets were crowded every weekend, it said.

However, despite the sharp increase in retail sales and services this year, the consumer price index (CPI) did not rise much, going up only 4.44 per cent over the same period last year.

The goods and services that saw their prices go up the most were medicines and health services, which increased by 14.44 per cent due to the impact of a healthcare fee hike at the beginning of the year.

Food and catering services went up by 6.29 per cent; housing, electricity, water, fuel and construction materials by 6.66 per cent and transportation by 8.48 per cent.

For the full year, the city targets retail sales of VND117.6 trillion, 10.9 per cent higher than last year.

Traders at HCM City market plead against closure     

Traders at the underground Sense Market at 23/9 Park in HCM City’s District 1 are worried the information that the government will evict them to reclaim green space.

The city People’s Committee recently said it would redesign the park to make it a more accessible green space for the public.

Nguyen Thi Tuyet Nga, owner of a shop selling clothes at the market and one of the first traders to move into the market, said: “Since hearing that the city will reclaim the park, traders here are so worried. I have invested more than VND1 billion (US$42,832), capital I have not yet recovered. We will incur a big loss if the city acquires the park.”

Do Lan Chi, 62, who has two food stalls at the market, said business has been very good and she was dispirited after hearing the city plans to reclaim the park.

She said every trader there had invested a large amount of money in equipment and goods.

"My business has been running for one year. The money has not been recovered; if we have to move out, how can we earn a living?"

Nguyen Van Hung, owner of a stall selling pho noodle soup, said he had invested hundreds of millions just two months ago.

Nga said traders at the market had been determined to operate there for long and collaborate with the market’s investors to create a Vietnamese food and “civilized” shopping destination.

"[We] request the city government to give us some more time so that we have the opportunity to recover a part of our investment. After that, we will manage to find another place to do business. If we have to  move out by April 30, 2019, many traders here will surely fall into huge debt.”

In the past the basement area had been abandoned for 20 years and became a place for dubious activities. Cuu Long Trading Investment Joint Stock Company and Saigon Co.op Investment Development  Joint Stock Company (SCID) then invested over VND100 billion in building Sense Market.

It opened in March last year.

It spreads over 11,000sq.m, including 6,000sq.m for parking, and consists of the 1,500sq.m Asiana Food Town featuring nearly 100 street food stalls selling foods from various countries like Viet Nam, Japan,  Thailand, Laos, Cambodia, and India and Taka Plaza with over 400 shops selling shoes and fashion clothes at fixed prices.

It also includes a convenience store, a bookstore and post office and foreign exchange counters.

Nguyen Thi Tranh, SCID’s general director, said “opening the underground market was aimed at providing a permanent place for hawkers who used to sell their goods on the pavement besides creating a  destination for tourists.”

The market gets 3,000 local and foreign visitors and shoppers every day, she said.

“The disorder was only in the park while the activities in the underground market are very well organised.”

According to the investors, the city was reasonable in considering reclaiming the park since it was not used properly and there was disorder.

But it should consider maintaining the underground market and extending the existing services in the basement, they said.

This would ensure the park is developed in accordance with the city’s plans while at the same time its underground space is exploited efficiently, they added.

Updated import regulations to increase trade     

The application of a customs bond model would benefit the country, contributing to an increase of one per cent of the total import-export turnover according to comments by Minister and Chairman of the  Government Office Mai Tien Dung.

Customs bond systems are designed to streamline the process for bringing goods into the country, thereby reducing the financial burden on businesses while ensuring the government receives all legally  required taxes.

A customs bond is an agreement that ensures any importer will pay all fees and operate according to local laws and regulations.

Speaking at a Ha Noi conference on facilitating trade on Monday, Dung said the Government has worked to create a competitive financial environment to facilitate business.

“The Government has taken specific measures, reducing unnecessary barriers to successful business,” he said.

He said that the ministries had reformed special inspection procedures, reducing the number of regulations from 9,929 to just 1,700 and streamlining the import-export process.

There is still work to be done, with authorities only meeting with 28.3 per cent of the set targets so far.

The Government Office has urged ministries to cut unneeded regulations that impede growth and prevent new businesses from getting off the ground.

Thus far, 968 out of 6,213 requirements for new businesses have been simplified or eliminated. This makes up 25.5 per cent of the planned changes.

Ministries have submitted 23 decrees to reform business conditions. It is expected that these decrees will reduce the number of conditions by 2,800.

“Last year, Viet Nam’s GDP grew 6.81 per cent, and it is expected to reach 7 per cent growth this year thanks to the Government’s efforts to save time and cost for firms,” he added.

Business costs have been sharply reduced through the deregulation push. Firms reported US$200 million in savings last year due to the reduced time it takes to implement simplified import-export  procedures.

Nestor Scherbey, senior policy advisor to the Global Alliance for Trade Facilitation (GATF) in Viet Nam, said outdated trade regulations and burdensome administrative procedures slow trade growth. He cited  a World Bank study that calculates the cost of these unneeded regulations as equal to a 164.25 per cent “Invisible Tariff”.

Scherbey said this has been the largest barrier to Vietnamese small and medium enterprises (SMEs), which make up 97 per cent of Vietnamese firms.

The application of a modern customs bond system in Viet Nam is expected to remove barriers while ensuring proper implementation of regulations.

A modern customs bond system will make it easier and cheaper for importers to bring goods into the country by simplifying the import-export process. Businesses will find it simpler to navigate customs checks  and tariff policies.

Importers and those transporting goods domestically are required by the customs agency to purchase a bond from a surety company. If an importing company fails to pay fees or follow regulations, customs  enforcement can file a claim. The surety company would then pay to a restitution fee. Finally, the importing company is required to reimburse the surety company.

GATF launched a new project in September 2017 to provide technical assistance for the Ministry of Finance (MoF)’s Insurance Supervision Authority. Ministries and State agencies regulating trade will also  receive support.

The project means international WTO experts will help with the efforts to reform Viet Nam’s trade regulations. The VNACCS/VCIS e-Customs system will also receive attention.

The ultimate goal is for State agencies involved with customs inspections to coordinate the implementation of a modern customs bond system with the General Department of Customs and MoF.

Local travel agencies discuss latest tourism trends, outlook     

Representatives from local travel agencies heard the latest insights about Viet Nam’s tourism development, including the 2017 overview and 2018 outlook, at a recent seminar held on September 8 in HCM City.

Speaking at the seminar, Alexander Rayner, representative of Amadeus Travel Intelligence, discussed the latest findings about visitor demand, total number of air passengers, air connectivity, and  passengers’ global distribution system (GDS) bookings.

Last year, South Korea, the US and China were the top three countries with the most air passengers to Viet Nam, according to research.

South Korea, in particular, Seoul, continued to top the chart in 2018.

Rayner said that understanding travellers’ data and destination insights would help travel agencies make data driven decisions and eventually advance Viet Nam’s travel and tourism sector.

In addition to general tourism, Rayner also spoke about Phu Quoc Island and moderated a panel discussion on data-driven opportunities to develop better air connectivity to Phu Quoc.

He also stressed the importance of harnessing the potential of blockchain in the travel sector.

Some issues that travel agencies should consider include making loyalty schemes more user-friendly; improving baggage tracking with blockchain technology; simplifying settlements in the travel value chain;  and improving identity management in travel.

The seminar, with the theme, “Blockchain for Tourism Development in Viet Nam”, attracted the participation of Ha Van Sieu, vice chairman of the Viet Nam National Administration of Tourism (VNAT); Tran Phu  Cuong, director general of the International Cooperation Department under VNAT, and La Quoc Khanh, deputy director of the HCM City Department of Tourism, among other representatives from global hotel  groups and local travel agencies.

The seminar was held followed a series of events during the 14th International Travel Expo. 

South’s economic growth 1.5 times higher than country’s     

Economic growth of the southern region for the first seven months of the year was 1.5 times higher than the national average, attracting over 60 per cent of FDI projects and contributing to 60 per cent of the  national budget, according to the Ministry of Planning and Investment.

During the period, the region’s Industrial Production Index rose by 9.81 per cent compared to last year. Retail and service revenue was VND1.4 quadrillion (US$61.87 billion), 12.4 per cent higher than last  year and accounted for 57.8 per cent of the national figure.

The region also accounted for around 47 per cent of the country’s exports, with total export value around US$62.9 billion, 12.07 per cent higher than last year.

Favourable policies, simplified administrative procedures, co-operation between regions, as well as infrastructure, trade and industrial clusters, have all contributed to the region’s growth in recent years. 

Da Nang calls for investment from the US     

The central city will offer the best conditions for businesses from the US investing in fields of high-tech, information technology, ‘green’ industries, trade, logistics, tourism and education.

Vice chairman of the city’s people’s committee Tran Van Mien made the statement at an investment promotion conference in San Francisco earlier this week.

Miên said the city has been completing infrastructure for the 1,100ha Hi-tech Park and 341ha Information Technology (IT) Park in Hoa Vang district for new investment in hi-tech industries.

He also called on two companies – Allied Telesis Holding and Advantech – based in Silicon Valley, to invest in ‘smart’ infrastructure projects in Da Nang as the central city aims to become a ‘smart’ and ‘green’  city by 2025.

Da Nang and Oakland also agreed to boost co-operation in sea port system development in the central city in the coming years.

The central city has established relationships with cities in the US including Oakland, Pittsburgh and Pennsylvania.

To date, Da Nang has attracted 53 direct investment projects from the US, worth US$520 million.

Last year, the Trung Nam Group of Viet Nam agreed to buy a 65 per cent stake from the US’s Rocky Lai & Associates Inc in building the Da Nang Information Technology Park for operation in late 2023.

The park, with total registered investment of US$278 million, aims to become central Viet Nam’s Silicon Valley. It expects to create revenue of $3 billion each year with 25,000 jobs and a satellite city of 100,000  people. 

Korea to open investment and trade promotion office in Da Nang     

The South Korea Trade and Investment Agency (KOTRA) will open a representative office in the central city to promote investment and connection among Korean investors.

President of KOTRA in Southeast Asia and Oceania, Kim Ki Joon made the announcement at a meeting with the central city’s leadership on September 10.

Kim, who is general director of KOTRA in Ha Noi, said "the introduction of an office in Da Nang aims to boost investment from Korea to the city and help promote tourism".

He said KOTRA moved its office from Singapore to Ha Noi in August.

Kim said KOTRA hoped to inaugurate the office in Da Nang in late November 2018.

Da Nang is the third city in Viet Nam with a KOTRA office after HCM City in 1992 and Ha Noi in 1996.

The state-funded trade and investment promotion organisation of Korea has 126 offices in 85 countries.

According to the city’s investment and planning department, Korean investors poured US$556 million in 112 direct investment projects in Da Nang.

Da Nang’s export turnover reached $17 million – marking growth of 14.5 per cent – in the first half this year, while imports from Korea totalled $36.5 million.

Korea plans to open a Consulate Office in Da Nang City to boost tourism and investment.

Korean tourists are the second largest segment of foreign tourist arrivals to Da Nang with nearly 1 million visiting the city last year, nearly 20 per cent of total foreign travellers.

Both Vietnamese and Korean budget airlines have operated daily flights between Korean cities and Da Nang since 2014.

According to the city’s tourism department, there are 12 flights from Korea to Da Nang every week, carrying an average of 1,500 passengers. 

US lowers duty on Viet Nam’s shrimp exports

The US government lowered the anti-dumping duty on frozen warm water shrimp from Viet Nam.

The decision was published on the Viet Nam Association of Seafood Exporters and Producers (VASEP) website on September 11.

According to the September 10 announcement from the US Department of Commerce (DoC), the final rate is 4.58 per cent. This new rate will impact the Sao Ta Seafood Joint Stock Company (Fimex VN) and  30 other companies.

This final rate is far lower than the preliminary rate of 25.39 per cent, first announced by the DoC on March 8. The rate is also slightly lower than the duty was in the prior period.

Ho Quoc Luc, Chairman of the Directorate Board of Fimex, said Fimex cooperated fully with the DoC during its inspection and delegation period.

In 2017, the export value of Vietnamese shrimp to the US fell 7 per cent from the previous year because of the hefty anti-dumping duty. Meanwhile, the export value to other markets rose sharply, hitting $659  million according to VASEP.

As a result, the US lost its spot as the fourth largest importer of Viet Nam’s shrimp. The export decrease continued in the first eight months of 2018, falling 10.5 per cent to about $372 million.

With the new lower rate, Viet Nam’s shrimp exports to the US are expected to recover in the coming months. Despite the expected rebound, the final number is expected to be 6.5 per cent lower than it was in  2017. 

Demand brightens up for lanterns

Demand for Vietnamese-made lanterns for the upcoming Mid-Autumn Festival has increased sharply from previous years.

Artisans from Phu Binh lantern village in HCM City’s District 11 have almost completed wholesalers’ orders with two weeks to go for the festival, which falls on September 24 this year.

Demand is up significantly this year, especially for traditional cellophane lanterns, they said.

Prices are up VND1,000-2,000 from last year, they said.

“But despite the higher prices, demand is very positive, which shows that Vietnamese consumers have returned to the traditional cellophane product,” an artisan at the village said.

Among the most popular items this year are lanterns made from cellophane or plastic in the shape of fish, chicken and rabbit.

The wholesale price of cellophane lanterns is VND18,000-VND19,000 and plastic lanterns is VND13,500.

According to other lantern producers, sales of traditional lanterns have been very good this year. With many of them only preparing to make similar volumes as previous years, they were taken by surprise by  the demand and quickly ran out of raw materials, they said.

In addition to star-shaped and other traditional cellophane lanterns this year there are many new designs based on children’s favourite cartoon and comic strip characters.

“We supply nearly 40 kinds of lanterns, including those looking like deer, bee, butterfly, sunflower, sun, chicken, and characters from films,” a wholesale distributor in Go Vap District said.

The Chinese lanterns that used to dominate the market are also available and still with their eye-catching designs.

According to traders, Chinese lanterns are more beautiful than Vietnamese ones, but many parents are opting to buy the latter for their kids because of the notorious reputation of Chinese products.

Thanh Lam, a trader in District 6, said: “Chinese products have flooded the Vietnamese market for many years. Most mid-autumn lanterns in the market are made in China.

“But Vietnamese consumers have returned to locally-made lanterns.”

Ho Thi Nhu Thuy, who was choosing a lantern for her daughter at a shop on Hai Ba Trung Street in District 1, said: “I always choose traditional lanterns because candles are safer than the electric lanterns.”

According to a Saigon Co.op spokesperson all lanterns sold at Co.opmart and Co.opXtra this year are locally made, resemble popular characters, are powered by batteries and come with traditional music.

They cost VND14,900-VND150,000 depending on the size and materials.

Besides mooncakes, lanterns are one of the most popular items sold during the Mid-Autumn Festival, which is celebrated on the 15th day of the eighth lunar month. 

Province to prioritises hi-tech     

The northern province of Ninh Binh will focus its investment in projects with high value and welcome investors with new ideas or breakthroughs in technology to promote its vast development potential.

Dinh Van Dien, chairman of the provincial People’s Committee, said the province is committed to offering support on key projects including infrastructure development, high-tech technology and environmental  friendly schemes in accordance with current State regulations.

Nguyen Cao Son, director of Ninh Binh Province’s Department of Planning and Investment, said the province has attracted 55 Foreign Direct Investment (FDI) projects, worth more than US$1.25 billion.

The projects in the province are mostly textiles, manufacturing and auto assembly.

Investors from 11 countries and territories have invested in Ninh Binh including Korea, mainland China, Taiwan, Singapore and Japan.

Most of FDI projects have been implemented effectively with revenue increasing each year, Son said.

The FDI inflow to the province reached $69.15 million in the first half of this year, an increase of $44.7 million compared with the same period last year.

The revenue brought by FDI enterprises has risen to $436 million, up 13.5 per cent over last year’s figure.

The projects also created jobs for almost 40,000 workers mainly in the textiles and footwear industry.

Điến attributed this to the ongoing efforts to foster administrative reforms, improve investment climate, accelerate investment promotion and resolve difficulties for investors.

Identifying tourism as key economic sector, the province has set up key tourist areas such as Trang An, Tam Coc-Bich Dong, Hoa Lu Ancient Capital, Phat Diem Church to attract investment in this area, he  said.

In order to attract more FDI capital in the future, he said the province would focus on a number of measures including developing infrastructure for industrial zones like Gian Khau, Khanh Phu, Tam Diep,  Khanh Cu and Phuc Son. 

In addition, the province would focus on high-quality human resources training, encouraging collaboration between enterprises and colleges and vocational training centres to meet employee’s demand.

The province has requested the relevant departments to review administrative procedures, implementing one-door policy with a view to reduce time-consuming and cost for enterprises, he said.

To make it easier, it was necessary that investors be provided with updated information on its industrial development strategies, land and warehouse rental fees in its industrial clusters, Dien said. 

Mekong Delta start-ups flourishing     

The growth of entrepreneurship within Ben Tre Province and the Mekong Delta has been flourishing in recent years, officials said during a conference on start-ups held in Ben Tre City on Tuesday.

Nguyen Phuong Lam, deputy director of the Viet Nam Chamber of Commerce and Industry (VCCI) in Can Tho, said that after two years of following the government’s instructions on creating a favourable  environment for businesses and start-ups, the number of start-ups had risen and that many provinces were working on long-term plans to promote start-ups.

From 2015 to 2017, the Mekong Delta saw a 12 per cent increase in new businesses, with Ben Tre and Hau Giang provinces seeing a 32 and 35 per cent increase in new firms, respectively. Nine out of 13  provinces in the Mekong Delta reached the targets promised to the government during the period.

However, the Mekong Delta’s entrepreneurial growth is still below the nation’s average of 16 per cent.

Lam, who is also chairman of the Mekong Delta Startup Network, said that start-ups in the region still faced challenges and did not have enough big firms or sources to provide experience, funding and  assistance.

In addition, there is lack of customer support as well as connections between businesses and the market.

The Mekong Delta has developed favourable policies, as well as infrastructure and education facilities, but it needs to work on promoting innovation and start-up skills, according to Lam.

Phan Van Mai, standing deputy secretary of Ben Tre Province’s Party Committee, said that over the last two years the province has been working to promote a suitable business environment for small start- ups.

Nearly 1,000 new firms were established over the last two years, and a total of 3,920 firms exist in the province.

The province has also provided funding and financial aid for 774 projects, with VND802 billion (US$34.5 million) worth of funds from sources such as the National Foundation for Science and Technology  Development and the Ben Tre Entrepreneurship Investment Fund.

Ben Tre needs to continue to raise awareness of and inspire the spirit of entrepreneurship by providing training for those looking to start their own business and improving the business environment by  gathering feedback, Mai said.

The province is also encouraging start-ups to use advanced technology and take advantage of their areas’ specialties to boost competitiveness.

Cu Van Thanh, director of Luong Quoi Coconut Processing Company, said that successful start-ups are passionate about what they do but are practical as well, and do not just follow trends.

The conference was organised by Ben Tre People’s Committee, VCCI in Can Tho City, Mekong Delta Startup Network and Saigon Times newspaper.

Vietnamese, South Korean firms seek new partnerships     

Over 100 entrepreneurs from Viet Nam and South Korea gathered at a business conference held in the capital this week to seek new co-operation opportunities.

Since 2011, South Korea has retained its position as Viet Nam’s leading source of foreign direct investment, Deputy Minister of Science and Technology Tran Van Tung told the conference.

Korean firms had made an effective contribution to speeding up the country’s economic growth and generating thousands of local jobs, he said.

In terms of trade, Tung said, South Korea is now the second largest trade partner of Viet Nam, just behind China, while Viet Nam is Korea’s fourth biggest trade partner.

Beside trade and investment, Tung also described the entertainment industry as a promising area for bilateral co-operation as Viet Nam’s entertainment market was projected to achieve growth of 10.7 per cent.

Lee Soo Man, chairman of SM Entertainment – one of the leading companies in the field in South Korea, said the two countries had many similarities.

“With a young population, 65 per cent of whom are under the age of 35, it’s realisable for Viet Nam to build a successful entertainment market that can help accelerate domestic economic growth as South  Korea has done,” Lee said.

SM Entertainment has been drawing up plans to find local partners to develop this lucrative market, he said.

Notably, in November, his company will set up an affiliate and organise programmes to seek new talents.

The conference also saw the launch of the Korean Vietnamese Entrepreneurs Network which aims to better faciliate co-operation among the two business communities. 

Deal signed to boost HCM City supporting industries through fairs     

The HCM City Centre of Supporting Industries Development (CSID), HCM City Mechanical – Electrical Enterprises, Korea Association of Machinery Industry and the Korea-based Coex Company on  Wednesday signed a memorandum of understanding to organise the Viet Nam International Machinery Fair and Vietnam Supporting Industry Fair.

Nguyen Phuong Dong, deputy director of the city Department of Industry and Trade, said the fairs, to be held at the Saigon Exhibition and Convention Centre in December, are expected to have 500 booths  set up by 350 local and foreign exhibitors, including from South Korea, Japan, the EU, Taiwan and China.

They will have a business matching area for foreign firms and Vietnamese and Korean component suppliers, a sourcing conference for connecting components suppliers with product manufacturers and a  seminar on the fourth industrial revolution.

They will display industrial and supporting industry products made by Vietnamese and foreign firms, typical supporting industry products made in HCM City, machinery and metalworking tools, supporting  industry products for the technology, medical, tourism, automation sectors, machinery and related industry services, and others.

“The fairs are among activities organised by the department to help local firms showcase and seek markets for their products, especially firms in supporting industries,” Dong said.

They offer good opportunities for Vietnamese firms to improve their production capacity, gradually enhance connections with other businesses to enter value chains for industrial and supporting industry  products, he added.

Japanese businesses seek hi-tech agriculture opportunities     

The Japan External Trade Organistion (JETRO) on Wednesday held a conference to connect Japanese enterprises with Vietnamese businesses in the field of hi-tech agriculture in Ha Noi.

Speaking at the event, chief representative of JETRO in Ha Noi Hironobu Kitagawa said hi-tech agriculture was a new area in Viet Nam, involving the application of other sectors such as engineering and technology.

“Japanese enterprises enter Viet Nam with two goals. Firstly, they want to invest in developing the country’s agriculture. Secondly they expect to export hi-tech innovations to Viet Nam,” said Kitagawa.

This conference does not focus on normal agricultural products, but more importantly creates added value for production from raw materials to finished products circulated in the market, he added.

Kitagawa said he appreciated the capacity of Vietnamese businesses in adopting Japanese technology, however, he said that such innovations changed every day and developed rapidly, therefore  

Vietnamese businesses needed to catch up with the changes and update their advanced technologies.

Attending the conference were 14 Japanese businesses introducing agricultural materials, chemical products, organic products, fertilisers and machinery, and tens of Vietnamese enterprises who wanted to  seek partners to develop their business.

Nguyen Thanh Mong, sub-manager of Sirumachi Vietnam, a member of Sirumachi Japan specialising in agricultural software, said the group was well-known in Japan for accounting software in co-operatives and its ‘Facefarm’ production diary. He expected to transfer the software to Vietnamese farmers.

He said over 80 per cent of land in Viet Nam was used for agriculture, however the country did not yet have effective management software. “Our software can help farmers set up growing plans and pesticide solutions. For example, it will help them know which plants are suitable for which pesticides and the frequency to use chemicals,” he said.

“We expect to get access to the State’s pesticide database so that we can classify and apply Facefarm software for each kind of pesticide on every plant.”

According to the Ministry of Agriculture and Rural Development, Viet Nam plans to have 500 hi-tech agricultural cooperatives and increase high-tech farming production value by five times by 2020. Each province and city would have at least three hi-tech agricultural co-operatives.

The average income from hi-tech farming products is expected to be three times higher than products which do not apply technology during cultivation, from the current 1.5 times.

Many experts say that there is a need for a broader perspective with new directions for developing smart agriculture, especially in the context of the fourth industrial revolution that has clearly had a positive  impact on all fields of social life. 

The Index of Industrial Production (IIP) of Ho Chi Minh City sustained its growth during the last eight months, gaining 0.24 percentage points month on month and predicted to rise 8.1 percent this year – higher than the 7.9 percent in 2017.

According to the municipal Department of Industry and Trade, the IIP last August increased by 6.15 percent from a year earlier. It added up to the 7.51-percent pace in the eight months while the figure in the same period last year was 7.31 percent.

The August index was high compared to the modest expansion since April, showing industrial production is gaining momentum, creating a basis for the sector to achieve this year’s targets, the department said.

Deputy Director of the department Nguyen Phuong Dong said HCM City-based businesses maintained stable operations and growth in the first eight months of 2018. 

A favourable investment climate has helped the city attract many foreign and domestic investments into processing and manufacturing, he said, noting that foreign direct investment (FDI) capital poured into this industry accounted for 24.9 percent of total FDI inflow into HCM City.

Maintained support has also aided key industries, helping local businesses expand markets, upgrade technology and improve product quality and competitiveness. Among the key industries, the food processing and beverage sector increased by 7.32 percent, chemicals – rubber – plastics 3.66 percent, electronics production 15.89 percent, mechanics 10.13 percent, textile-garment 10.51 percent, and footwear 7 percent.

Some businesses said the key industries’ growth was driven by the fast expansion of their sub-indices.

Between January and August, total retail sales of goods and consumer service revenue in the city reached 679.8 trillion VND (29.4 billion USD), up 12.6 percent year on year, compared to the 10.3 percent in the same period last year. Notably, monthly spending per capita for food and beverages has risen by almost 13 percent each year over the past decade.

Ly Kim Chi, Chairwoman of the Food and Foodstuff Association of HCM City, said the food and beverage sector is still a magnet for investors thanks to the market’s high growth rate and consumption demand. Total retail sales of food and foodstuff in the period were estimated at more than 75.5 trillion VND (3.3 billion USD) while export value reached 118.87 million USD, up 13.6 percent and 14.5 percent year on year, respectively.

The Department of Industry and Trade said it is working with the municipal Statistics Office to monitor the production and consumption situation so as to take measures to support local businesses. 

Foreign media: Vietnam, Japan call on US to rejoin CPTPP

Vietnam and Japan on September 13 urged the US to rejoin the Trans-Pacific Partnership (TPP) deal, now renamed Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), almost two years after US President Donald Trump withdrew from the deal, according to the AFP news agency. 

The AFP report quoted Japanese Foreign Minister Taro Kono, speaking at the World Economic Forum on ASEAN in Hanoi, as saying that CPTPP members believe that the agreement is still the best option for the US, and that it will be very attractive for US industries and farmers to join it. He added that the pact could be going into effect by the end of the year.

Vietnam's Deputy Prime Minister and Foreign Minister Pham Binh Minh echoed Kono's appeal, calling the deal "a very high-standard agreement".  

The TPP used to be negotiated by 12 countries, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the US.

After the US withdrew from the TPP, the remaining 11 members still strived to continue the deal and renamed it CPTPP, which was officially signed in Chile on March 8.

They said they would leave a door open for the US’s re-participation and new members.

Last April, President Trump said the US would only join the CPTPP if the deal was improved.

The CPTPP is expected to promote economic growth, create more jobs, reduce poverty, and improve the living standards of people in member countries. It will create one of the biggest free trade blocs in the world, with a combined market of some 499 million people and total GDP of 10.1 trillion USD, accounting for 13.5 percent of the global GDP.

Blockchain technology benefits SMEs, developing countries: report

Blockchain could bring a commercial benefit of 1 trillion USD, mostly for small- and medium-sized enterprises (SMEs) as well as for some newly-emerged markets which suffer most from a lack of access to credit and have ample room to grow trade, including Vietnam, according to a new report jointly released by Bain & Company and the World Economic Forum (WEF).

The report further said blockchain and its most popular application of distributed ledger technology (DLT) have narrowed the trade gap around the globe and made impossible trade transactions possible.

The positive influences of the DLT have been shown most obviously in the SMEs and newly-emerged markets, it said.

Blockchain technology can promote the supply chain and capital market, creating conditions for the strengthening of transparency in business.

The global trade finance gap is currently standing at 1.5 trillion USD and estimated to grow to 2.4 trillion USD by 2025, as calculated by the Asian Development Bank.

However, this missing funding can be reduced by 1 trillion USD if blockchain technology is applied more broadly.

Wolfgang Lehmacher, head of Supply Chain and Transport Industries at the WEF, said that the application of blockchain-based solutions will bring about many benefits for the SMEs from developing countries, rather than current measures such as removing tariff barriers and closing trade transactions.

Vice President Gerry Mattios of Bain & Company said that governments and economic organisations should provide certain technology support to the SMEs, thus helping them form a digital foundation serving their operation and reduce risks.

Speaking to Vietnam News Agency’s reporter on how Vietnamese SMEs can make full use of advantages in technology amidst modest capital access, Mattios said that difficulties in capital calling is common among SMEs and startup firms around the world.

However, the good news is that many funds have been founded to support SMEs in reform and renovation process. Yet in order to give choices to the firms, governments and trade organisations must play a significant role in seeking specific roadmaps for their development in the digital world, he said.

Mattios also stressed the need for governments and entities of the economy to work together to implement the roadmap.

Ninh Binh to prioritise hi-tech investment projects

The northern province of Ninh Binh will focus its investment in projects with high value and welcome investors with new ideas or breakthroughs in technology to promote its vast development potential.

Dinh Van Dien, chairman of the provincial People’s Committee, said the province is committed to offering support on key projects including infrastructure development, high-tech technology and environmental friendly schemes in accordance with current State regulations.

Nguyen Cao Son, director of Ninh Binh province’s Department of Planning and Investment, said the province has attracted 55 Foreign Direct Investment (FDI) projects, worth more than 1.25 billion USD.

The projects in the province are mostly textiles, manufacturing and auto assembly.

Investors from 11 countries and territories have invested in Ninh Binh including the Republic of Korea, mainland China, Taiwan (China), Singapore and Japan.

Most of FDI projects have been implemented effectively with revenue increasing each year, Son said.

The FDI inflow to the province reached 69.15 million USD in the first half of this year, an increase of 44.7 million USD compared with the same period last year.

The revenue brought by FDI enterprises has risen to 436 million USD, up 13.5 percent over last year’s figure.

The projects also created jobs for almost 40,000 workers mainly in the textiles and footwear industry.

Dien attributed this to the ongoing efforts to foster administrative reforms, improve investment climate, accelerate investment promotion and resolve difficulties for investors.

Identifying tourism as key economic sector, the province has set up key tourist areas such as Tran An, Tam Coc-Bich Dong, Hoa Lu Ancient Capital, Phat Diem Church to attract investment in this area, he said.

In order to attract more FDI capital in the future, he said the province would focus on a number of measures including developing infrastructure for industrial zones like Gian Khau, Khanh Phu, Tam Diep, Khanh Cu and Phuc Son.

In addition, the province would focus on high-quality human resources training, encouraging collaboration between enterprises and colleges and vocational training centres to meet employee’s demand.

The province has requested the relevant departments to review administrative procedures, implementing one-door policy with a view to reduce time-consuming and cost for enterprises, he said.

To make it easier, it was necessary that investors be provided with updated information on its industrial development strategies, land and warehouse rental fees in its industrial clusters, Dien said.