Vietnamese goods campaign promote local firms’ development

A trade promotion fair to connect firms in Hà Nội and other localities. — Photo kinhtedothi.vn

A campaign urging local people to buy “Made-in-Viet Nam” products has helped develop businesses across the country.

The Vietnamese people using Vietnamese goods campaign has played a key role in helping local enterprises, a conference held in Hà Nội on Tuesday heard.

“The campaign should not be a slogan but aim to conquer Vietnamese consumers,” said deputy minister of Industry and Trade Đỗ Thắng Hải.

Trương Thị Ngọc Ánh, vice chairwoman of the Việt Nam Fatherland Front Central Committee, said all of localities nationwide had worked to implement the idea.

More than 100 trade promotion conferences were held last year and more than 2,000 programmes were organised to bring Vietnamese goods to rural areas.

“Local consumers in rural and remote areas had opportunities to recognise and know more about made-in-Việt Nam products,” Ánh said.

“Domestic producers have expanded their production and focused on sustainable development.”

Vietnamese goods have improved their quality and sell for more reasonable prices. The country now has some 4,823 specialties of which 695 have registered for intellectual property protection.

But it is not all good news.

The campaign has seen shortcomings as the counterfeit, poor quality and unsafe goods have been found.  

Cao Đức Phát, deputy head of the Party Central Committee’s Economic Commission said the Government should continue to complete policies and mechanisms to facilitate business development while strengthening market management to fight counterfeit or poor quality goods to protect Viet Nam’s reputation and build links between production and consumption to increase trust for consumers.

“2019 is an important year when the CPTPP agreement comes into effect and 60 per cent of tariff lines have been removed,” Phát said.

“In the next 3 years, 85 per cent of tariff lines will be erased. This puts pressure on Vietnamese goods. Therefore, it is necessary to support Vietnamese enterprises to contribute to socio-economic development.”

The ministry said it would listen to issues and help where it can. It would also pay attention to develop distribution systems to increase the rate of Vietnamese goods at retail and improve competitiveness.

Vice President and General Secretary of the Việt Nam Fatherland Front Central Committee Hầu A Lềnh said they would suggest new policies which are suitable with the current situation.

They would organise a forum to help enterprises exchange ideas and proposals for Government. Meanwhile, the use of Made-in-Việt Nam goods would be enhanced in projects using State money.

The Government should encourage investment into developing distribution systems and apply science and technologies to improve quality. 

VinFast opens car design contest for new Pre series     

Vietnamese automaker VinFast on Tuesday announced it will launch new premium cars, covering all segments from small sedans and multi-purpose sports vehicles to family cars.

Under the theme ‘For Vietnamese people and by Vietnamese people,’ VinFast continues to hold the contest ‘Choosing lovely car with VinFast – 3’ to find the best designs for its premium cars from 35 drawings by leading world brands.

Following its first line of cars – Lux, short for "Luxury," for the high-end segment – VinFast plans to debut the Pre line – abbreviated for "Premium" – by 2020, with the aim of introducing world-class cars in a popular price segment to more widely meet customer needs.

The Pre series will initially consist of seven models, covering all grades A, B, C and D. Grades A and B have one hatchback and one crossover (CUV) model; class C will have one sedan model and one CUV sample; and class D will have one sedan, one Sport Utility Vehicle (SUV) and one family car.

VinFast said it would continue to work closely with famous Italian auto designers including Ital Design, Torino Design and Pininfarina. The Pre series will also be produced on the world’s leading technology application line, with a commitment to roll out quality products to the market under VinFast’s motto "Style - Safety - Innovation - Pioneer".

Deputy President and CEO of VinFast Nguyen Viet Quang said with the mission of introducing high quality products to the market and making a contribution to the development of Viet Nam’s automobile industry, VinFast was focused on expanding its product portfolio to better meet the travel needs of separate customer groups.

“The launch of the Pre series with seven new models, spread across all segments, from small cars to sport utility vehicles and family cars, will realise this goal,” Quang said.

To start the development of the new models, VinFast continues to call on the community to contribute ideas for design sketches. During the period from January 15 to the end of January 24 this year, consumers can vote for their seven favourite designs for each model at http://www.binhchonmauxe.vinfast.vn.

Each model will have five choices, shown from different angles so consumers can make informed choices.

The contest’s awards are valued at a total of nearly VND800 million. One first prize will be a VinFast Fadil Car; four second prizes will be a Kalra Lithium electric motorbike each; 20 third prizes will be Vsmart Active 1+ phones; and 100 encouraging prizes will be VND1 million VinID Giftcards.

In the contest “Choosing lovely car with VinFast-2”, which was organised from March 8-18 last year, two models of electric car and a small sedan from Ital Design have been voted the favourite by Vietnamese people. Nearly 300,000 people took part in the contest.

Minh Phu Seafood reports positive business results despite lower prices     

Minh Phu Seafood Corporation (MPC) reported it exported 67,646 tonnes of products last year, 107 per cent of its target for the year.

The company earned US$750.7 million, fulfilling 93 per cent of its target.

Global shrimp prices have fallen by 25 per cent but the company’s output increased by 19 per cent, helping raise revenue by 7 per cent.

Minh Phu estimated its pre-tax profit at VND1.2 trillion ($51.5 million), which might exceed the planned target.

In December alone, the company exported 5,635 tonnes of products and recorded a turnover of $65.75 million. The US was its largest export market with $19.28 million, accounting for 29.3 per cent.

The company said business activities last year still saw growth in both output and profit despite the difficulties facing the Vietnamese and world shrimp industries.

Viet Nam’s application of new shrimp farming technology last year and the competitive price of Vietnamese raw shrimp helped the company improve its profit margin compared with 2017.

Job Festival organised in Dong Nai

More than 10,000 people from the southern province of Dong Nai and neighbouring areas took part in the Job Festival last weekend, the first of its kind organised in the province.

Organised by King Broker Joint Stock Company, the festival also attracted the participations of over 100 companies and 10 local universities and colleges in the area.

The organiser said the job festival was a new model in Dong Nai which aims to connect local employees and companies as well as share with young people experiences in finding jobs.

During the festival, two talk shows and two workshops were organised, offering chances for employees to talk with enterprises’ leaders.

Trinh Nguyen Tuan Anh, founder of King Broker, said: “We aim to create a bridge connecting companies, schools, students and employees. Through the festival, it is easier for them to find jobs and talent employees.”

Tuan Anh said the same programmes would be developed in the future as it has received strong support from the Ministry of Education and Traning as well as local authorities.

Previously, the organiser successfully held a Human Resources Summit, with participation of 300 CEOs from Dong Nai. 

Philippines opens investigation into imported ceramic tiles

The Philippines Department of Trade and Industry (DTI) has initiated a preliminary investigation on the application of safeguard measures on the import of ceramic floor and wall tiles from various countries, including Viet Nam, according to the Trade Remedies Authority of Viet Nam.

The investigation will cover the period from 2013 to 2017.

According to the DTI’s notice, the protest alleged that increased imports had contributed to serious damages to the local industry.

The petitioner was Mariwasa Siam Ceramics, Inc. (MSC) which accounted for 86 per cent of the Philippines’s total production output subject to the investigation.

The DTI’s notice said the volume of imports of ceramic floor and wall tiles increased from 6,000 tonnes in 2013 to more than one million tonnes in 2016. In 2017, imports were 12 per cent lower than in 2016 but still 2,192 per cent higher than in 2014.

China, Indonesia and Viet Nam were the major suppliers of the imported products.

Despite significant increases in market size, the market share of domestic manufacturers declined from 96 per cent in 2013 to 14 per cent in 2017. The market share of imported ceramic tiles grew from 4 per cent in 2013 to 88 per cent in 2016. The domestic industry experienced a sharp decline in earnings of 1,067 per cent in 2017.

“The market share of locally produced ceramic floor and wall tiles was essentially displaced during the period under investigation as the share of imports in the domestic market significantly increased,” the notice said.

The increased imports also allegedly damaged the domestic industry in terms of production, sales, capacity ultilisation, incurred losses, price depression and undercutting, according to the DTI.

Statistics showed imported ceramic tiles from Viet Nam accounted for the second highest share of imports from 2014 to 2015.

In 2013, Viet Nam was the top foreign supplier of ceramic tiles in the Phillippines with 2,491 tonnes or a 48 per cent share of imports. From 2014 to 2017, yearly imports from Viet Nam increased to 10,028 tonnes, 21,320 tonnes, 27,176 tonnes and finally 29,622 tonnes. However, Viet Nam’s import share declined from 25 per cent in 2014 to 3.2 per cent in 2017.

In the first half of 2018, the country sent 4,005 tonnes of ceramic floor and wall tiles to the Phillippines, making up 3.32 per cent of imports.

The Trade Remedies Authority of Viet Nam urged Vietnamese exporters to the Philippines to actively prepare for the investigation and provide information to the DTI as required.

Vietnamese goods campaign promote local firms’ development     

A campaign urging local people to buy “Made-in-Viet Nam” products has helped develop businesses across the country.

The Vietnamese people using Vietnamese goods campaign has played a key role in helping local enterprises, a conference held in Ha Noi on Tuesday heard.

“The campaign should not be a slogan but aim to conquer Vietnamese consumers,” said deputy minister of Industry and Trade Do Thang Hai.

Truong Thi Ngoc Anh, vice chairwoman of the Viet Nam Fatherland Front Central Committee, said all of localities nationwide had worked to implement the idea.

More than 100 trade promotion conferences were held last year and more than 2,000 programmes were organised to bring Vietnamese goods to rural areas.

“Local consumers in rural and remote areas had opportunities to recognise and know more about made-in-Viet Nam products,” Anh said.

“Domestic producers have expanded their production and focused on sustainable development.”

Vietnamese goods have improved their quality and sell for more reasonable prices. The country now has some 4,823 specialties of which 695 have registered for intellectual property protection.

But it is not all good news.

The campaign has seen shortcomings as the counterfeit, poor quality and unsafe goods have been found.

Cao Duc Phat, deputy head of the Party Central Committee’s Economic Commission said the Government should continue to complete policies and mechanisms to facilitate business development while strengthening market management to fight counterfeit or poor quality goods to protect Viet Nam’s reputation and build links between production and consumption to increase trust for consumers.

“2019 is an important year when the CPTPP agreement comes into effect and 60 per cent of tariff lines have been removed,” Phat said.

“In the next 3 years, 85 per cent of tariff lines will be erased. This puts pressure on Vietnamese goods. Therefore, it is necessary to support Vietnamese enterprises to contribute to socio-economic development.”

The ministry said it would listen to issues and help where it can. It would also pay attention to develop distribution systems to increase the rate of Vietnamese goods at retail and improve competitiveness.

Vice President and General Secretary of the Viet Nam Fatherland Front Central Committee Hau A Lenh said they would suggest new policies which are suitable with the current situation.

They would organise a forum to help enterprises exchange ideas and proposals for Government. Meanwhile, the use of Made-in-Viet Nam goods would be enhanced in projects using State money.

The Government should encourage investment into developing distribution systems and apply science and technologies to improve quality. 

Japan firm to build fiber plant in VN

Toray’s carbon fiber plant in Mexico. The group hopes to open a new fiber plant in Viet Nam. — Photo mexico-now.com

Toray Industries, Inc, a large Japanese textile and garment group, hopes to invest in a fiber plant in northern Nam Dinh Province.

Mitsuo Ohya, Senior Vice President, Toray Industries, Inc spoke to Minister of Industry and Trade Tran Tuan Anh at their meeting in Ha Noi on January 14.

The plant is expected to have investment capital of about 20 billion JPY (US$184.4 million).

This would be the first fiber plant using the most advanced techniques under Toray’s long-term investment roadmap in Viet Nam, he said.

During the meeting, Minister Tran Tuan Anh said Mitsuo Ohya’s visit was important, considering the good results achieved by the strategic cooperation between Viet Nam and Japan.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) also came into effect, meaning many opportunities for Viet Nam’s textile and garment industry, including foreign enterprises operating in the textile industry in Viet Nam.

In addition, the Minister also mentioned Viet Nam’s targets to build industrial parks for textile and garment factories in the future. That would promote the development of the domestic textile and garment industry and environmental protection.

Textile and garment plants built in Viet Nam, including the Toray Group’s yarn factory, will contribute to the textile and garment industry’s development by improving capacity of raw materials for the industry in accordance with the rules of origin in the CPTPP and other free trade agreements, according to the Minister.

The Ministry of Industry and Trade will accompany foreign companies as well as the Japanese business community, including Toray, to turn Viet Nam into an attractive investment destination for foreign businesses. 

Railway firm gets back on track after rough years

A railroad crossing on Kham Thien Street, Hanoi 

Vietnam Railway (VNR) aims to accelerate its growth to a rate of 8 percent in 2019 after suffering depression from 2015 to 2017.

The corporation also plans to utilise the 7 trillion VND (300 million USD) in funding approved by the National Assembly in September last year to upgrade four railway infrastructure projects.

“In spite of the severe fall between 2015 and 2017, VNR started recovering in 2018,” said Vu Anh Minh, head of the VNR Committee of Members. “We hope to sustain that momentum in 2019.”

Improvements in service quality will also be targeted as a part of VNR’s passenger-oriented strategies.

“We have built new trains which focus on offering genuine experiences and providing better services for tourists and passengers,” said Minh.

On January 10, 2018, six new five-star trains on the Reunification route connecting Hanoi and HCM City were launched. Passengers on these trains are offered hot meals prepared by the Southern Airports Services Joint Stock Company.

A meal worth about 30,000 VND (1.30 USD) is including with a ticket, and the ticket price remains unchanged.

According to a VNR report, its total revenue in 2018 was some 8.3 trillion VND (356 million USD), marking an increase of 1.9 percent. The average monthly income of its workers, therefore, was lifted 2.9 percent to reach 8.46 million VND (363 USD).

Last year, the corporation witnessed two important turning points. The revised Law on Railways went into effect in January and VNR was transferred from the Ministry of Transport to the State Capital Management Committee.

These changes affect the corporation’s operation.

“The transfer creates opportunities, and at the same time poses challenges for VNR, especially in balancing the relationship between the three involved sides,” said Nguyen Ngoc Dong, Deputy Minister of Transport. “While the committee only manages the state capital of 3.8 trillion VND (163 million USD), the ministry is responsible for the railway system.”

He stressed corporate restructuring and separating infrastructure management, maintenance and business to improve transparency.

In 2018, some 120 VNR workers, including officials, were fined or suspended for matters related to severe crashes.

These actions followed repeated accidents due to ill management and poor warning systems at crossings.

For example, a collision between a truck and the SE19 Express Train crossing Thanh Hoa province on May 24, 2018 killed two people and injured ten others. An officer and two employees in charge of ensuring safety at the crossing were detained for investigation.

Since June, 2018, VNR has piloted the operation of cameras at crossings to protect pedestrians and reduce accidents caused by railway staff.

Businesses urge stronger reform at local levels

The business community wants stronger reform efforts at local levels, according to a recent survey conducted by the Vietnam Chamber of Commerce and Industry (VCCI).

Survey participants said the settlement of complaints and petitions by local administrations was not as efficient as by ministries and central-level agencies.

While the business community recognised improvements in the investment and business environment and efforts of all-level administrations, there is much room for improvements, said VCCI Chairman Vu Tien Loc.

Loc said ministries, agencies and local administrations have announced many reforms and measures, but it seems to take a long time for them to have direct impacts on enterprises.

“There is still a far distance from support policy to the target beneficiaries,” according to Loc.

Head of the VCCI’s Legal Department Dau Anh Tuan said a number of public servants have limited working capability and bureaucracy and harassment still exist. Problems have arisen in the streamlining of business conditions, especially the different criteria used by ministries in deciding which conditions should be abolished and which should not.

The problems aside, the business community have acknowledged that under the drastic instruction of the Prime Minister and Government, the streamlining of administrative procedures and barriers to business has become a bright spot in the implementation of Resolution 35 on administrative procedure reform in 2018.

Remarkable progress was seen in access to electricity, business start-up, business conditions and taxation procedures.

Head of the VCCI’s Legal Department Dau Anh Tuan said many localities had surpassed the targets set in their commitments on administrative procedure simplification.

Localities with effective reforms are Dong Thap, Da Nang, Quang Ninh and Long An. Other localities have also made progress.

All localities have applied the one-stop-shop model in handling administrative procedures and built public administrative centres at provincial level and even at district level, while promoting the use of information technology in handling many procedures related to land, construction, tax, insurance, and utilities, thus remarkably saving time for businesses.  

Tuan particularly noted that most localities have switched to receiving and handling tax declarations online, with the rate of businesses using the services reaching 96-100 percent. Many localities hold regular dialogues in various forms between local officials and the business community, thus facilitating smooth communications between the two sides.

The cause of reform requires stronger actions in 2019, as a better future will not be realised if there is no action, VCCI Chairman Loc affirmed.

CPTPP brings opportunities, challenges to Vietnam’s agriculture

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has recently taken effect in Vietnam, which will bring about both opportunities and challenges for many fields, including agriculture. 

Tran Van Cong, deputy head of the Agro Processing and Market Development Authority, said that Vietnamese firms will be able to expand their export markets to some of the world’s largest, as well as boost exports of high-value processed produce, making it easier to join the global supply chain. 

According to him, processed fruits and vegetables, and dairy products will face intense competition. However, the sector also has some advantages in low-cost manufacturing and low-paid workforce, along with an abundance of supply. 

In order to fully reap the benefits of the CPTPP and mitigate the impacts of possible challenges, he said the agricultural sector must step up restructuring by improving added value and sustainability, and limiting reliance on imported materials. 

Focus must be given to national, provincial, and local-level products in combination with geographical indication and the “One Commune, One Product” programme, he said. 

Meanwhile, the wood sector will benefit from preferential tax as import tax for Vietnamese wooden furniture into Canada, Mexico, and Peru has been high in the past. 

Huynh Van Hanh, Vice Chairman of the Ho Chi Minh City Handicraft and Wood Industry Association, said incentives from the CPTPP will help the sector reduce prices and improve its competitiveness. 

Vice President of the Vietnam Timber and Forest Product Association Nguyen Ton Quyen said that apart from wooden furniture, taxes for wood processing equipment will also be cut to zero, raising hopes for wood processors. 

He suggested that domestic firms improve corporate governance, technical process, and marketing.

Metalworking trade show offers opportunities for Vietnamese firms

The EMO Hannover 2017 attracted almost 2,230 exhibitors from 44 different countries. (Photo: congthuong.vn)

Vietnamese businesses will be provided with plenty of opportunities to gain better access to the Fourth Industrial Revolution’s trends and seek link-ups with foreign partners when attending EMO Hannover 2019, the leading global trade show for metalworking, which is scheduled for September 16-22 in Hannover, Germany.

EMO Hannover Managing Director Christoph Miller said at a press get-together in Ho Chi Minh City on January 15 that Vietnam’s top metalworking suppliers, like the Republic of Korea, China, Japan, the US, and Germany, will all be present at the fair, which is themed “Smart technologies driving tomorrow’s production”.

Nearly 1,800 enterprises from 41 countries and territories across the five continents have registered to join the event so far. They will introduce advanced metalworking technologies that help improve productivity and product quality, he stressed.

Experts have said that the manufacturing industry contributes 30 percent to Vietnam’s economic growth. This year, the country is also looking to increase its industrial production by 6.6 percent. As Vietnam has become an important link in the global value chain, Vietnamese manufacturers should work to gain a competitive edge over their rivals.

However, Vietnam still relies much on imports of modern production technologies, and it is now the world’s 10th largest importer of machinery and tools. The Southeast Asian country will be a promising market for foreign suppliers as its consumption of machinery and tools is expected to increase by 8.2 percent in 2019. 

EMO Hannover is the world’s most important international meeting point for production technology specialists from all over the planet. The EMO Hannover 2017 attracted almost 2,230 exhibitors from 44 different countries, and around 130,000 trade visitors from 160 nations. EMO is a registered trademark of the European Association of the Machine Tool Industries CECIMO.

Businesses advised to practise social responsibility

Director of the Vietnam Chamber of Commerce and Industry (VCCI)’s Branch in Ho Chi Minh City Vo Tan Thanh 

Ensuring corporate social responsibility (CSR) and responsible business conduct (RBC) are important factors in promoting the sustainable development of businesses in the light of global economic integration, heard a seminar in Ho Chi Minh City on January 15.

The event, entitled “Responsible Supply Chain in Asia – Engagement of Strategic States”, was jointly held by the Vietnam Chamber of Commerce and Industry (VCCI)’s chapter in HCM City and the International Labour Organisation (ILO).

Director of VCCI-HCM Vo Tan Thanh said the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect in Vietnam on January 14, while the Vietnam-EU free trade agreement (EVFTA) is in the process of approval. This has opened up numerous opportunities for the Southeast Asian country to make inroads into major markets.

However, to enjoy the preferences of these new-generation FTAs, participating countries, including Vietnam, must comply with non-commercial commitments such as labour, environment, and corporate social responsibility, as well as factors to ensure sustainable development, he noted.

Over the past time, the VCCI has organised a number of activities to improve the business investment environment in Vietnam, and increase the competitiveness of businesses in the international arena, he said.

From now until 2020, the VCCI and ILO will implement a responsible supply chain project in Asia with a focus on supporting businesses operating in the two key export sectors of Vietnam: seafood processing and timber processing, which are expected to obtain a lot of opportunities in expanding markets as Vietnam joins the CPTPP and EVFTA.

Bui Thi Ninh, head of the VCCI-HCM’s bureau for employers’ activities, said CSR and RBC are key to improving relations between employers and employees. They not only have great impact on the sustainable development of businesses, but also their prestige and branding, she said.

Good practice of CSR and RBC will help businesses reduce production costs, improve the efficiency of using resources, and increase revenue and profit, she added.

Chang-Hee Lee, Director of ILO Vietnam, said Vietnam has joined many supply chains of goods and services for large and developed markets.

The practice of CSR and RBC will help promote smart, sustainable, and inclusive growth for the business community, which in turn will improve their ability to access markets and optimise tariff preferences from FTAs, he said.

At the seminar, experts suggested businesses thoroughly study the relevant provisions of FTAs that are about to take effect, and make active contributions to the building and amendment of legal regulations on businesses and employment.

Quang Tri builds internationally-certified shrimp farming zones

The central province of Quang Tri is building internationally-certified and high-tech shrimp farming zones in order to raise its shrimp value from 550 billion VND (23.9  million USD) to over 1 trillion VND. 

Director of the provincial Department of Agriculture and Rural Development Vo Van Hung said the move will turn Quang Tri into a major shrimp farming hub in the north central region. The locality has also selected shrimp as its representative in the national product chain. 

Accordingly, the high-tech shrimp farming zone will sprawl over 50-100ha in coastal areas in early 2019. 

Effective and eco-friendly models that use bio materials and biofloc technology which are up to organic and VietGap standards will be shared, especially in the communes of Trieu Phuoc, Trieu Do, Trieu An, and Trieu Van in Trieu Phong district; Gio Mai, Gio Viet, Trung Hai, and Trung Giang in Gio Linh district; and Vinh Giang in Vinh Linh district. 

The province has set the goal of 1,500ha of shrimp farming area by 2020, with an output of around 6,800 tonnes. By 2025, intensive farming zones will also be built.

One more trade center open in HCMC

Saigon Union of Trading Co-operatives and SCID Company opened Sense City trade center in Giga Mall building in Pham Van Dong street, Hiep Binh Chanh ward, Thu Duc district, HCMC on January 12.

One more trade center open in HCMC

That is the fourth Sense City after trade centers in Can Tho city, Ben Tre and Ca Mau provinces in the Mekong Delta. 

The Sense City trade center in Pham Van Dong street has the total floor area of over 30,000 square meters comprising cuisine area selling more than 200 Vietnamese and Asian dishes, shopping mall, book store, play area for children and Co.opXtra supermarket.

Kon Tum officially debuts products from Ngoc Linh ginseng

Ngoc Linh Ginseng Kon Tum Joint Stock Company’s products made from Vietnam’s Ngoc Linh ginseng officially made debut on January 11.

This is the first time after 30 years of conservation Kon Tum Province has introduced products made from Ngoc Linh ginseng to consumers, including ginseng extract K5, ginseng tea, ginseng soaked in honey, fresh ginseng and ginseng liquor K5.

The introduction of products made from Ngoc Linh ginseng will help consumers to easily approach Ngoc Linh ginseng at affordable prices as well as to identify products made from real ginseng.

The company said that it would research to produce other products from ginseng, including energy drink and beauty and health care products.

It will continue to conserve and develop the precious gene source at Ngoc Linh Mountain. Every year, the company sets aside around 40,000 to 50,000 seedling of Ngoc Linh ginseng to give to households living in the Ngoc Linh Mountain. Up to now, Ngoc Linh ginseng has been grown in an area of more than 500 hectares in Kon Tum Province.

The current price of Ngoc Linh ginseng with unclear origin varies from VND50 million to VND200 million per kilogram of fresh ginseng. Dried Ngoc Linh ginseng leaves are sold at VND350-400 million per kilogram. Accordingly, just a few consumers were able to afford Ngoc Linh ginseng due to high prices.

In Kon Tum, there are only two companies consisting of Dak To Forestry Company and Ngoc Linh Ginseng Kon Tum Joint Stock Company received certificate of recognition for Ngoc Linh ginseng.

Ginseng with its scientific name Panax vietnamensis Ha et Grushv was first found on Ngoc Linh Mountain in Nam Tra My District of Quang Nam province and two districts Dak Glei and Tu Mo Rong in the central highlands province of Kon Tum. The herb is one of precious ginseng which are recognized in the world.

Consumption of dried foodstuffs sharply increases

As consumers have started to buy dried foodstuffs and sweetmeats for Tet holidays, traders at traditional markets and modern distribution networks in Ho Chi Minh City have stockpiled enough essential commodities to ensure supply during the coming Tet festive season.

At traditional market like Ba Chieu and Thanh Da in Binh Thanh district, Thu Duc in Thu Duc district, and Pham Van Hai in Tan Binh district, at this time, dried foodstuffs, including dried shrimp, dried squid, dried wood ear mushroom, dried shiitake mushroom and dried glass noodles have been displayed all over the food stalls. Traders have also hoarded dried processed foods, such as beef jerky and dried shredded squid and some newly released products like dried chicken and dried anchovy as because of their convenience, these products are top choice for families to treat their guests during Tet holidays.

A grocer in Thanh Da market said that demand for dried foodstuffs such as glass noodles, wood ear mushroom, shiitake mushroom and dried bamboo shoot usually increases on the occasion of lunar New Year as these are ingredients of traditional dishes of Vietnamese families for Tet. Demand for many kinds of beans and nuts also climbs. Therefore, traders have stockpile a large amount of commodities in order to prevent a hike in price as well as a shortage in supply when consumer demand rises at year end.

The prices of dried foodstuffs were rather stable. Products for high-end market segment were evacuated, labelled and packed in eye-catching packing. Particularly, dried turnip was sold at VND180,000 per kilogram, dried peeled mung bean fetched VND60,000 per kilogram, wood ear mushroom was from VND200,000 to VND250,000 per kilogram, grade-1 dried bamboo shoot was from VND200,000 to VND300,000 per kilogram, dried shiitake mushroom was from VND350,000 to VND400,000 per kilogram, glass noddles was from VND80,000 to VND120,000 and dried wild bamboo shoot was sold at VND450,000 per kilogram.

At Ba Chieu market, sweetmeats and dried foodstuffs were also in display. According to traders in this market, in order to meet buying demand of consumers which usually surges prior Tet holidays, they have stocked a certain amount of goods. However, the volume of sweetmeats stockpiled this year was lower than previous years so as to prevent high inventory after Tet and slow capital recovery.

According to market management boards, in recent years, as people earned more money thanks to developing economy, they tended to buy high quality products for Tet holidays. Therefore, dried foods stores mainly stocked high-end products so the prices were a little higher than those of regular ones. For instance, sweetmeats were mainly from Kinh Do and Hai Ha; sugar-preserved fruits and dried fruits were of prestigious manufacturers. Noticeably, the amount of goods for Tet hoarded for Tet was at a moderate level. There was no sign of overstocking.

Saigon Coop, the largest modern distributor in Vietnam, said that not only traditional distribution channels but modern distribution networks, including supermarket, shopping malls and convenience stores also prepared a plentiful and diversified supply of goods to meet the buying demand of consumers. Saigon Coop stockpiled a worth of VND3 trillion of goods for Tet. At the same time, in order to prevent artificial scarcity and price raise, Saigon Coop has run several promotional campaigns from now to Tet.

In fact, traditional markets have been facing fierce competition from modern distribution networks. They have lost a large number of customers as more consumers are going to supermarket for shopping. Due to competition pressure, traders at traditional markets have started to change their ways of selling to keep their customers. For instance, they have no longer overcharge and become warmer to their customers. They have chosen products of better quality to sell. Most products selling at markets now have clear origins and from prestigious local manufacturers.

Mr Le Van Tien, deputy director of Hoc Mon Wholesale market, said that purchasing power will increase from January 28 to February 2. In order to ensure distribution of goods to consumers, besides reminding traders of making stockpile plans, matters involving food safety should also be focused. Market management boards collaborate with Food Safety Management Authority of Ho Chi Minh City to organize inspections to tightly control the origin and quality of products to help traders to raise awareness in ensuring the quality of their products.

Cholimex shows robust performance after equitization

It is reported that after going equitization under the instruction of the People's Committee of Ho Chi Minh City, profit of Cho Lon Investment and Import - Export Corporation (Cholimex) has jumped by more than 250 percent in 2018.

Particularly, the company was set to achieve a revenue of VND465 billion and a profit of 66.79 percent in 2018 at its shareholders' meeting. However, the company realized VND571 billion in revenue, completing 122 percent of its target. The company's pre-tax profit reached VND168 billion, up 252 percent compared to the same period last year, exceeding 187 percent of its target of VND90 billion.

Average income of its employees has also improved compared to previous years, from VND11.7 million per month in 2015 to VND16.3 million per month in 2018.

Cholimex is a state-owned company that was successfully equitized in 2016. It is a typical business in restructuring and renovating and has achieved good performance indicators after equitization.

Dai-ichi Life Vietnam Fund Management Company launches open-ended fund

Dai-ichi Life Vietnam Fund Management Company Limited – the wholly-owned subsidiary of Dai-ichi Life Insurance Company of Vietnam which is a member of Dai-ichi Holdings Inc. from Japan – has just launched its DFVN Capital Appreciation Fund with the charter capital of more than VND75 billion ($3.2 million).

The move is in conformity with the Incorporation License for public securities investment fund No.34/GCN-UBCK by the State Securities Commission of Vietnam dated January 3, 2019.

The new fund (DFVN-CAF) is the first open-ended fund established and managed by DFVN. With dedicated and experienced on-the-ground team of professionals, DFVN has been entrusted to manage the life insurance funds of the Dai-ichi Life Insurance Company of Vietnam (or Dai-ichi Life Vietnam) with the total assets under management of over VND17 trillion ($739 million) as of November 2018.

Taking a long-term view, DFVN emphasises being disciplined during the investment process, while remaining flexible in the execution of investment tactics in response to market conditions.

Taking a long-term view, DFVN emphasises being disciplined during the investment process, while remaining flexible in the execution of investment tactics in response to market conditions.

DFVN-CAF will invest mainly in a diversified portfolio of listed equities in Vietnam with good fundamentals, high growth potential, and solid corporate governance. The fund aims to outperform its benchmark VN-Index over the long term.

According to Tran Chau Danh-DFVN’s CEO cum chief investment officer (CIO), “There are 24 open-ended funds (OEF) incorporated in Vietnam as of November 30, 2018, with the total assets under management of VND13.378 trillion ($582 million) and around 30,000 transaction accounts open.”

These figures seem quite modest in comparison to the country’s population and economic growth scale as well as to regional peers. The market potential, therefore, is huge.

In recent years, there were several local fund management companies (FMCs) who have been trying hard and made adequate investments to enhance operation systems, which brought benefits and values to investors.

“When launching DFVN-CAF, we aim to be among the best FMCs with contributions to the sustainable development of the local investment fund market. Accordingly, we focus on delivering optimal and consistent investment performance over the long term as well as enhancing quality services to our investors,” said Danh.

Takashi Fujji, chairman of Dai-ichi Life International Asia-Pacific cum chairman of DLVN and DFVN Member Councils, said, “With twelve years in operation, Dai-ichi Life Vietnam, the owner company of DFVN, has been growing more than twenty times its total premium revenue, building a solid foundation and standing as one of the four leading life insurers in Vietnam.

“Loyal to our philosophy “Customer first,” we have provided our clients with a diversified portfolio of quality life insurance products and the launching of DFVN-CAF will give our clients another option of financial solution with Japanese quality, helping clients to accumulate and grow their wealth efficiently over time so that they can enjoy their desired lifestyle.”

DFVN selects HSBC Bank (Vietnam) Limited as the custodian and supervisory bank, as well as the provider of fund administration and transfer agency services to DFVN-CAF.

As for distribution partners, at the company’s initial public offering (IPO), DFVN appointed BIDV Securities JSC (BSC) and Viet Dragon Securities JSC (VDSC) as distributors servicing investors to DFVN-CAF.

“We believe that OEF will gain more popularity as one of the essential financial investment vehicles for Vietnamese people. We expect that there will be more and more people and families in Vietnam know about and invest into our DFVN OEFs in the years to come,” Danh added.

Ongoing transactions – new subscriptions and redemptions – can be started over again from January 29, 2019. The minimum subscription amount is VND1 million ($43.4) per order.