Viettel Group gets its 4th corporation     

Viettel Construction Joint Stock Company has had its licence upgraded and become the Viettel Construction Joint Stock Corporation.

Corporations have the right to run subsidiaries whereas companies do not.

It becomes Viettel Group’s fourth corporation, an important milestone as it steps into its so-called fourth development stage.

In 2018 – 20, the new corporation will focus on construction, engineering, infrastructure for lease, and integrated system solutions.

“We would like to become the country’s leading infrastructure lessor by 2025,” Senior Lieutenant-Colonel Duong Quoc Chinh, general director of the corporation, said.

Major General Le Dang Dung, general director of Viettel Group, said: “The corporation should improve its core capability of constructing and operating telecom infrastructure.”

It has to make comprehensive plans to expand its core capability to serve other companies and to do business internationally, he said.

Dung said the corporation should buy existing telecom infrastructure, upgrade it and lease it out.

“It would be a big opportunity but also new and challenging.”

The corporation has built 50,000 base transceiver stations and laid 320,000km of optic-fibre cable, which is equivalent to seven times the Earth’s circumference, covering every commune, island and border region in Vietnam.

It built the telecom infrastructure for Viettel in nine African and Asian markets.

Its turnover has increased from VND8.5 billion ($530,000) in 2001 to an expected VND4.2 trillion ($182.6 million) this year.

It has set its sights on leasing telecom infrastructure in four to six nations by 2020, building 5,000 base transceiver stations,

It also plans to lay 120km of cables underground in major Vietnamese cities, creating infrastructure for the Internet of Things for ministries and businesses including telecom service providers.

It targets annual turnover growth of 22 per cent to reach VND6 trillion ($260 million) by 2020.

Decree promotes the use of e-invoices

     

Sellers of goods and service providers must provide buyers with e-invoices with a standard data format regulated by the Ministry of Finance, according to a Government decree issued recently.

Under Decree 119/2018/ND-CP, there are two types of e-invoice: one with a verification code of the tax authority and one without the code. E-invoices with verification codes can be used for tax declarations.

Enterprises must use e-invoices with the verification code, except those operating in specific sectors such as power, petrol, telecommunications, transportation, insurance, healthcare, finance and e-commerce

For individuals and business households, those operating in agriculture, forestry, fishery, industry and construction sectors with annual revenue over VND3 billion (US$130,400) and 10 or more regular workers must use e-invoices with verification codes.

For individuals and business households operating in trade and services, they must use e-invoices with the tax authority code if their annual revenue tops VND10 billion.

E-invoices could be converted into paper form.

Viet Nam is promoting the use of e-invoice with a target that 90 per cent of enterprises would use e-invoices by 2020. 

South Korean investor pours funds in Viet Uc Seafood     

A South Korean investor has poured capital of US$33 million into Viet Uc Seafood Corporation (Viet Uc Seafood), a leading company supplying shrimp products in Viet Nam.

South Korea’s STIC Investment Inc has invested $16.5 million in Viet Uc Seafood through the Pan Asia Technology Fund by buying its shares. The remaining funds will be invested through another fund in the future, reported online newspaper theleader.vn.

Earlier, the Viet Uc Seafood received investment from Lotus Asia Investments, managed by Lombard, a North American-based fund management company. Now, Lotus Asia Investments holds 11.5 per cent of Viet Uc Seafood’s total shares.

Viet Uc Seafood is a wholly foreign invested firm with charter capital of VND102.4 billion. The largest shareholder is Viet Uc Singapore Company holding 56 per cent of total shares while Viet Uc Hongkong Company holds 11.5 per cent. Luong Thanh Van, Viet Uc Seafood President and Chief Executive Officer, holds 19.2 per cent.

Viet Uc Seafood has not announced a new structure of its shareholders after receiving investment from the Korean fund.

Binh Thuan Province-based Viet Uc Seafood has six facilities producing shrimp products in Bac Lieu, Ca Mau, Ben Tre, Ninh Thuan, Binh Dinh and Nghe An provinces. In addition, the corporation is building more facilities producing shrimp products in Quang Ninh and Soc Trang provinces.

Viet Uc Seafood has total output of 50 billion units of shrimp products per year. Now, the company accounts for 24 per cent of the domestic market of shrimp products after three years of operation.

SAV to audit PetroVietnam

The State Audit of Việt Nam will audit PetroVietnam and its seven subsidiaries. — Photo cafef.vn

The State Audit of Việt Nam (SAV) has decided to audit the financial reports of Việt Nam National Oil and Gas Group (PetroVietnam).

The audit would take 60 days at the parent group and seven subsidiaries including PetroVietnam Technical Services Corporation (PTSC), PetroVietnam Power  Corporation (PV Power), PetroVietnam Oil Corporation (PVOil), PetroVietnam Drilling and Well Service Corporation (PV Drilling), PetroVietnam Ca Mau Fertiliser Joint Stock Company (PVCFC),  PetroVietnam Transportation Corporation (PV Trans) and Binh Son Refining and Petrochemical Joint Stock Company. The SAV would focus on assets, capital resources, revenue, spending and payments to the State budget.

In addition, it would also audit finance and accounting management works, financial investment, buying of assets, goods and services as well as the restructuring from 2016-20.

The audit delegation will include 35 people led by Lê Minh Nam, Deputy State Auditor General. 

HCM City to host int’l pharma expo     

More than 100 exhibitors from 25 countries and territories will showcase their latest products and technologies used in the medical, pharmaceutical and hospital industries at the 13th Pharmed & Healthcare Vietnam in HCM City next week.

The annual expo at the Saigon Exhibition and Convention Centre in District 7 will be an opportunity to network for medical equipment and drug companies and for foreign exhibitors to find local distributors and business partners.

On display will be drugs, drug manufacturing and packaging machinery, diagnostic equipment, healthcare and rehabilitation equipment, surgical instruments, beauty care equipment and products, and others.

There will be various seminars on the medical, pharmaceutical and hospital industries, including on smart healthcare in the industry 4.0 era, updates on management of medical devices in Viet Nam and the use of technology in the pharmaceutical industry.

Hua Phu Doan, deputy chairman of the HCM City Medical Equipment Association, told a press conference in HCM City yesterday (September 11) that the Vietnamese market is growing at 17-18 per cent annually with imported equipment accounting for more than 90 per cent.

Last year it spent more than US$1.2 billion on imports and the figure is expected to cross $1.6 billion this year, he said.

More than 55 per cent of the country’s imports are from five countries -- Japan, Germany, the US, Singapore, and China – he said.

Only 50 medical equipment manufacturers have been licensed in Viet Nam, he said.

The expo, to be held from September 19 to 22, will be organised by ADPEX JSC, the Central Health Communication and Education Centre, the Viet Nam Pharmaceutical Companies Association, and the Viet Nam Medical Products Import – Export Joint Stock Company. 

Over 20,500 cars sold in August     

The Vietnamese people bought more than 20,500 cars in August, decreasing 4 per cent compared with the previous month, according to a report from the Vietnam Automobile Manufacturers’ Association.

Of the figure, there were nearly 14,900 locally-assembled units, down 18 per cent, and over 5,600 imported units, up 66 per cent.

In the January-August period, total sales reached 169,040 units, dropping by 5 per cent year-on-year.

According to assessments by auto dealers, the sales decline in August, also known as Ngau or July in the lunar calendar, was not as much as expected.

Traditionally, the month is considered inauspicious for making large purchases or opening new businesses. However, in recent years the sales of cars during the month has remained steady, indicating that such traditions hold less of a sway over purchasing decisions.

Leading the market is Hyundai Thanh Cong with sales of nearly 5,600 units in August, followed by Toyota Motor Vietnam with more than 4,700 units and Honda Vietnam with 2,125 vehicles. 

Thaco earns post-tax profit of VND3.3 trillion in H1     

Truong Hai Automobile Joint Stock Co (Thaco) recorded VND27.75 trillion (US$1.18 billion) in revenue in the first half of this year, marking an increase of 9 per cent year-on-year.

According to Thaco’s financial report, which was released recently, the company earned post-tax profit of more than VND3.3 trillion during the January-June period, up 17 per cent compared with the same period last year.

In its business plan this year, Thaco set a target of VND73.548 trillion in net sales and VND7.07 trillion in profit after tax. After the first half of the year, the firm achieved 38 per cent of the planned net revenue and more than 42 per cent of post-tax profit.

As of June 30, total assets of Thaco reached VND65.73 trillion, up 8.6 per cent over the beginning of the year. Loans were VND15.125 trillion, equivalent to 23 per cent of total assets, of which VND14.037 trillion was short-term loans and VND1.088 trillion was long-term loans.

Thaco is the leading company in Viet Nam in the field of automobile assembly and distribution. The company has expanded its activities in the agricultural sector recently. Specifically, Thaco and Hoang Anh Gia Lai Joint Stock Co (HAGL) reached a strategic co-operation agreement to invest in Hoang Anh Gia Lai International Agricultural JSC (HAGL Agrico) and Hoang Anh Construction and Housing Development JSC (HAGL Land).

Accordingly, Thaco and its shareholders will own 35 per cent of HAGL Agrico with a total investment of VND3.8 trillion. At the same time, Thaco, through its subsidiary Dai Quang Minh Real Estate Investment JSC, will own 65 per cent of HAGL Land with total investment capital of VND4 trillion.

According to the commitment, Thaco will also arrange to restructure debts of about VND14 trillion, mobilise investment capital for taking care of and expanding existing orchard area, and continue to invest in the second phase of the HAGL property project in Myanmar. 

Predator fans chance to go on Hollywood tour     

Kaspersky Lab has partnered with 20th Century Fox for the launch of a promotional campaign for the movie “The Predator” in which seven winners will get a chance to go on a Hollywood FOX Tour worth more than US$8,000.

The promo will be held in 11 countries and territories in the APAC region, Australia, Hong Kong, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Viet Nam.

A total of seven winners from the participating countries will win tours while 1,000 others will receive limited edition Predator gift sets worth $25 each.

Vo Duong Tu Diem, territory manager, Kaspersky Lab, said: “Being cybersecurity experts, we want to make sure that the cyberworld is safe for everyone from all kinds of threats. Our job is pretty much parallel to the role of the good guys in the Predator movie as we are hunting the hunters to make the world a little safer from cybercriminals.”

Helmed by American actor Shane Black, who also directed the Lethal Weapon series and Iron Man 3, The Predator features an action-packed conflict between the lethal alien hunters, who return to Earth, against a disgruntled science teacher, a crew of retired soldiers, and a boy who has an extraordinary ability to learn languages.

Information on how to join the promo is available at http://apac-promo-kaspersky.com. 

Ride-hailing app FastGo expands services     

Ride-hailing app FastGo on Monday officially rolled out services in the central coastal city of Da Nang.

After receiving funding from Vinacapital, FastGo has expanded its operations to other big cities following Ha Noi and HCM City.

Despite launching just three months ago, FastGo has developed quickly and now holds second position in the market, with around 25,000 drivers.

Speaking at the launch ceremony, Nguyen Huu Tuat, FastGo’s general director, said that Da Nang attracted thousands of both domestic and international visitors.

FastGo said it would expand its services to six to eight big cities in 2018 and nationwide in 2019 to help the company surpass its rivals.

FastGo is a ride-hailing app developed by a Vietnamese company, and drivers pay VND30,000 (US$1.3) to FastGo if they earn more than VND400,000 per day.

It has also committed to keep tariffs unchanged during peak periods, while offering regular promotions.

The app already has nearly 100,000 users, and that number is increasing by up to 20 per cent a day.

FastGo expects to have 1 million users by the end of the year.

The firm made its debut in Ha Noi on June 12, before expanding to HCM City on August 10. 

DHG sees profits rise     

The Hau Giang Pharmaceutical Joint Stock Company (DHG) is expected to attain post-tax profit of VND705 billion (US$31 million) in 2018, up 10 per cent year-on-year, Bao Viet Securities Company (BVSC) forecasts.

According to BVSC, profits generated from the sales of non-betalactam products and supplement foods (Naturenz, Nattoenzym, Spivital) are expected to maintain its growth momentum, while that of the analgesic, antipyretic products (Hapacol) and antibiotics, betalactam products are forecast to decrease.

DHG, one of the leading companies in the pharmaceutical cosmetics industry, is expected to boost sales of new product thanks to its extensive distribution network and increasing customers’ demand for supplement products. 

Bedding manufacturer EVC issues $10m convertible bonds     

Bedding and padding manufacturer Everpia Jsc., (EVC) issued convertible bonds worth US$10.1 million for Rhinos Vietnam Convertible Bond Private Investment Fund No. 4 which is run by Korea’s Rhinos Asset Management Co., Ltd.

According to EVC’s announcement on its website, the bond is of a five-year term with an annual yield of 1 per cent.

The money raised would be partly used to expand its distribution network and business while the rest would be used to invest in fixed assets, marketing and branding activities, the company said.

After one year since the issuance, the buyer could convert the bonds at the price of VND18,245 ($0.8) each.

Around 70 per cent of Everpia Vietnam’s revenue is gained from the sale of bedding products and 30 per cent from padding products. The company owns brands such as Everon and Artemis. 

Grab partners with Moca for payment services     

Grab Company Ltd and MOCA Technology and Service Joint Stock Company (Moca) on Tuesday in Ha Noi announced a strategic partnership to promote cashless payments on the Grab platform in Viet Nam.

Moca and Grab will leverage each others’ technology expertise and partner networks to roll out payment services to millions of Vietnamese consumers and SMEs.

Moca was granted a license for payment services by the State Bank of Vietnam (SBV) in 2016 and has a network of 11 local banks as partners for their service.

“This strategic collaboration with Moca marks an important milestone for Grab in Viet Nam as we seek to accelerate our growth in one of the fastest growing economies in Southeast Asia,” said Nguyen Tuan Anh, head of Grab Financial Group Viet Nam.

The companies did not give further details on the partnership, but said they expect to launch their joint service in October.

“Consumers are leading increasingly digital lifestyles. The strategic partnership helps promote this digital lifestyle, and we expect exponential growth of mobile payments driven by Moca and Grab across Viet Nam,” said Tran Thanh Nam, co-founder and CEO of Moca.

In March 2017, Grab established an R&D centre in HCM City and officially launched the centre a few weeks ago, which is part of a global R&D network of six centres that includes Bangalore, Beijing, Jakarta, Seattle and Singapore.

Grab and Moca will collaborate to offer consumers and SMEs in Viet Nam more mobile payment facilities starting from the last quarter of the year.

Tan Hooi Ling, co-Founder of Grab, said they would continue their investment into Viet Nam through technology, human resources and partnerships with local companies to increase the firm’s presence in the country.

“Viet Nam’s growth is so fast that we speak about the numbers on a month-on-month not year-on-year basis,” she said.

Over the past month, Grab’s food delivery grew by 2.2 times from the previous month, delivery 22 per cent and use of non-cash payments for transport increased by 21 per cent.

She said the figures were expected to continue rising. They targeted to have a half of the Vietnamese population using Grab services by 2020.

Grab said it has 175,000 drivers and bikers across the country. 

FPT introduces three new products and celebrates 30th anniversary    

FPT introduced three new technology products at its 30th anniversary and FPT Techday 2018 on Wednesday.

The first is a new version of artificial intelligence FPT.AI ver3 with new features such as creating chat scripts, selecting messages for different clients, automatically analysing customer needs and managing messages with customers.

In addition, the firm unveilved voice control devices Voice Remote for FPT Play Box users and comprehensive digital conversion solution for enterprises aka RPA, helping automate processes to help businesses improve their productivity and cut labour costs.

The programme has attracted more than 3,000 guests from the Government, ministries, businesses and the technology community in Viet Nam and around the world. This is the largest event in the history of 30 years of FPT.

Established on September 13, 1988, FPT has had 30 years of pioneering in information technology and telecommunications, from bringing world technology to Viet Nam to putting Vietnamese intelligence on the map.

FPT is the largest private ICT company in Viet Nam, with more than 33,000 employees in 33 countries and territories. 

Tech firms occupy 25% of SE Asia office space     

As growth in Southeast Asia’s online economy gains pace, US property consultancy John Lang LaSalle (JLL) projects that technology companies will drive office occupancy, potentially accounting for 15-25 per cent of annual gross office leasing volumes in the next decade compared to about five to 10 per cent three years ago.

Technology companies have become a key office occupier group in the region, and they are frequently the earliest tenants to pre-commit to new buildings, JLL said in a report titled “Technology firms transform Southeast Asia”.

“Given that technology firms will become a key source of office occupancy, this is an opportunity for real estate investors and developers to create space that will meet this need,” Regina Lim, head of capital markets Southeast Asia research, JLL, said.

“Last year the tech sector attracted over US$6 billion in funding, and the industry’s growth will contribute significantly to future office leasing volume, which we estimate will rise at 6 per cent annually amid a GDP growth rate of around 5 per cent.”

Stephen Wyatt, country head of JLL Viet Nam, said: “There is no better place to witness the growing demand from Technology firms and co-working operators than Viet Nam.

“The country is catching up fast with its regional peers, due to a young, dynamic, tech-savvy, entrepreneurial population. We have seen a dramatic increase in demand from technology firms and co-working/flexible working operators over the past three years and anticipate this will be one of the key trends over the next five years.”

Southeast Asian economies are forecast to expand at 5 per cent annually until 2020, exceeding the global rate of 3.5 per cent.

The region’s internet economy could be worth more than US$200 billion by 2025, with e-commerce seen as the fastest-growing segment. Along with an expanding middle class, this segment is predicted to rise at 30 per cent in the next five to 10 years to reach $88 billion by 2025, according to a Google-Temasek study.

As internet companies developed their presence rapidly in the region in the last decade, e-commerce firms in particular have flourished in the past two years.

The biggest global technology companies like Alibaba, Facebook, and Google each occupy a total of 20,000-50,000sq.m spread across three to five cities.

Many of these companies have increased their headcount by 30-50 per cent annually over the last five to 10 years, the report said.

Separately, co-working and flexible workspace operators have also contributed to the region’s office demand. Flexible workspaces have climbed by an estimated 40 per cent annually in the last three years and now take up 2 per cent of office stock in the region, compared with 0.5-1 per cent in 2015.

“We think in the next decade e-commerce companies will continue to grow, together with flexible workspace and co-working operators,” Lim said.

“As e-commerce firms spread their footprint, we predict that gaming and e-sports platforms may become the next driver of office occupancy in Southeast Asia.”

According to JLL, the acceleration in office take-up by technology firms in the last three years has occurred mainly in Jakarta, Bangkok, Manila and HCM City. 

PAN finalises Japanese deal     

Vietnamese agriculture and food company PAN Group JSC has finalised its private placement plan with Japanese Sojitz Corporation, which is projected to take place between now and the end of the year.

PAN Group will issue a maximum of 14.86 million shares, equivalent to 11 per cent of its stake, to Sojitz Corporation, or a directly or indirectly wholly-owned subsidiary of the Japanese company.

The offering price will be no less than VND55,000 (US$2.35) per share, a discount of 4.4 per cent to Monday’s close.

In its final plan, the company said it will authorise chairman of the board of directors to decide the offering price based on negotiations with the investor, taking account of investor’s ability to support the business and investment plans, and market conditions at the implementation date.

The shares, to be issued within this year, will not be transferable for 12 months.

If the deal is executed successfully, Sojitz will become a major shareholder and have a strategic partnership with PAN.

PAN Group has increased its ownership limit for foreign investors to 100 per cent. Its current major shareholders include Saigon Securities Inc (20 per cent), NDH Invest (11 per cent), The Asian Entrepreneur  Legacy (TAEL) Partners (20 per cent), Mutual Fund Elite (9.79 per cent) and CSC Vietnam (5.2 per cent).

Founded in 1998 with charter capital of just VND250 million, PAN Group has been continuously expanding in recent years though mergers and acquisitions (M&A). Its current businesses covers seed and cultivation, confectionery and FMCG packaged food products, cashew nut and aquatic products processing for export, striving to develop an integrated value chain 3F (Farm-Food-Family).

PAN Group is expected to raise VND817.4 billion ($35 million) and lift its charter capital from VND1.2 trillion to VND1.35 trillion after the private issue.

The share issue will help the company find more strategic shareholders to assist its development strategy, as well as acquire more capital to increase its stake in subsidiaries and finance its M&A projects in the field of agriculture, raw materials and food nutrition, packaged food and beverages.

At the annual shareholders’ meeting in April, PAN Group’s leaders said it was planning an M&A deal this year but declined to disclose its target company.

Viet Nam is a major agricultural exporter of farm produces such as rice, coffee, cashew and pepper. With a population of more than 96 million and a fast-growing economy, consumption of food and related products is predicted to increase by 10 per cent annually over the next five years.

On it’s website PAN describes Viet Nam as a ‘promising market’.

The company’s profits has steadily increased since 2014, reaching nearly VND503 billion in 2017, up 49.5 per cent against 2016. Ending June this year, it recorded consolidated sales of VND3.55 trillion and net profit of VND204.7 billion, up 136 per cent in revenues and 66 per cent in profit compared to the same period of last year.

Its share prices have climbed nearly 60 per cent this year to around VND57,500 per share on the Ho Chi Minh Stock Exchange.

Recently, the company approved the plan of issuing bonds worth maximum VND1.14 trillion to investors, expected in this quarter. 

Masan Group to sell treasury shares worth nearly VND11 trillion     

Masan Group Corporation (MSN) on Tuesday announced that it planned to sell treasury shares worth nearly VND11 trillion (US$478 million).

Masan was seeking to sell all of its 109.9 million treasury shares at a price of VND100,000 each, according to a resolution by Masan’s board of directors on Tuesday.

The sale aimed to restructure the company’s capital while ensuring flexible capital mobilisation, optimising the corporate balance sheet and profit growth. 

After tumbling to around VND74,000 per share in early July, MSN was on an uptrend and traded at VND94,000 on Wednesday morning.

From October 16 to November 14, 2017, Masan bought more than 100.66 million treasury share at the price of around VND58,400 each to bring its holding of treasury shares to nearly 110 million.

The book value of the shares was more than VND6.5 trillion in the company’s financial statement in the second quarter of this year.

If the treasury shares were sold at the desired price, the difference would be around VND4.48 trillion compared to the book value.

In the first half of this year, Masan’s after-tax profit reached VND3.4 trillion, rising by 560 per cent over the same period last year, largely thank to rises in revenues of Masan Consumer Holdings and Masan  Resources. 

SSI opens new transaction office in HCM City     

Saigon Securities Inc (SSI) opened a branch on Cach Mang Thang Tam Street in HCM City’s District 3 on Wednesday.

The office in Lim 2 Building is SSI’s sixth in the city and 13th in the country.

To mark the opening, the first 200 customers will get souvenirs.

SSI, incorporated in 1999, was one of the first securities companies in Viet Nam. It has a chartered capital of more than VND5 trillion (over US$214.7 million), the highest among securities firms.

In the second quarter of this year the company accounted for more than 23 per cent of the market, the first time a single company has achieved a 20 per cent market share. 

Only 10 SOEs approved for equitisation in eight months
     
Only one State-owned enterprise (SOE) had its equitisation plan approved in August, lifting the total number of approved businesses this year to 10 (nine companies and one civil service unit), Ministry of Finance data showed.

The number is far behind this year’s target of 85 SOEs.

The total value of these 10 enterprises exceeded VND29.5 trillion (US$1.26 billion), of which VND15.27 trillion belonged to the State.

Ending August, State-owned corporations and enterprises made VND3.77 trillion from divestment, collecting VND9.14 trillion for the State budget by selling the stakes at a higher price than book value.

Concerning the reasons for the delay, Deputy Prime Minister Vuong Dinh Hue in July’s meeting pointed out major challenges, including the evaluation and approval of land use plan after equitisation,  complicated pre-equitised auditing process of big corporations, the lack of determination of enterprises’ leaders and poor stock market conditions.

According to Dang Quyet Tien, director of the Corporate Finance Department under the Ministry of Finance, authorities needed to strengthen inspection and supervision, as well as sanction leaders of  delaying SOEs. It is also necessary to revise the list of SOEs pending for equitisation and divestment and urge them to follow the plan.

If enterprises registered to equitise in 2017 but fail to do in 2018, these companies should be transferred to the State Capital Investment Corporation, the Government agency that oversees most SOEs, Tien  said. 

$123m bank divident payout
     
Vietcombank has decided to pay shareholders a cash dividend at a rate of 8 per cent after last year’s business results.

The bank is expected to spend about VND2.88 trillion (US$123 million).

The deadline for shareholders to take part is October 8. Dividends will be paid on October 25, the bank announced in a filing to the State Securities Commission.

Vietcombank earned a record VND9.11 trillion ($389.3 million) in after-tax profit in 2017, up 33 per cent against 2016.

The State Bank of Viet Nam, which owns 77.1 per cent of Vietcombank’s charter capital, will reap over VND2.2 trillion from these dividends. Japanese strategic shareholder, Mizuho Bank Ltd with a 15-per-cent stake, will receive nearly VND432 billion.

Shares have increased nearly 14 per cent in value this year, trading at around VND63,000 ($2.69) per share on the Ho Chi Minh Stock Exchange.

Last month, the Prime Minister issued Decision No 986/QD-TTg on the development strategy of Viet Nam’s banking sector to 2025. The State will gradually reduce its holdings in three major banks, including Vietcombank, Bank for Investment and Development of Viet Nam (BIDV) and Vietinbank.

During the 2018-20 period, the State will increase charter capital to ensure the banks’ capital adequacy ratio in conformity with Basel II standards, guaranteeing the dominant stake of at least 65 per cent of total number of voting shares at State-owned commercial banks (except for Agribank).

Until 2025, the State holdings will be reduced to 51 per cent. In addition, the Government has also set a schedule for these banks (Vietcombank, BIDV and Vietinbank) to list shares on foreign stock markets.  
Ho Tram signs up Wyndham to manage new hotel     

Property developer Ho Tram Project Company Ltd on Monday announced that it has tied up with Wyndham Hotels & Resorts, a global hotel franchisor and operator services, to manage its Ramada by  Wyndham Ho Tram Strip.

They signed the agreement last week in the southern province of Ba Ria – Vung Tau.

Ramada by Wyndham Ho Tram Strip, whose old name was Kahuna Ho Tram Strip, will be an upper-midscale seafront hotel located within the Ho Tram Strip, the country’s first integrated beach resort  destination spread over 164 hectares with a 2.2km beachfront site.

The 5.3ha Ramada by Wyndham Ho Tram Strip will have 12 floors and its 198 units will include seven two-bedroom penthouses and 36 three-bedroom villas.

Currently under construction and expected to open in late 2019, it is located two hours away from HCM City.

Viet Nam is a key focus market for Wyndham Hotels & Resorts.

The company, which currently operates the Wyndham Legend Hạ Long Bay, plans to open six new hotels and resorts under its Wyndham Grand, Wyndham, and Wyndham Garden brands over the next  three years.

Joon Aun Ooi, president and managing director, Wyndham Hotels & Resorts, South East Asia and Pacific Rim, said: “Viet Nam is one of the world’s most dynamic tourism destinations. The country attracted  

7.9 million international visitors in the first half of 2018, putting it firmly on course for yet another record-breaking year – potentially exceeding the previous record of 12.9 million visitors achieved in 2017.

“To cater for this strong demand, impressive new developments are rising all across the country, including the Ho Tram Strip.”

Michael Kelly, executive chairman of Ho Tram Project Company Limited, said: “The Ramada brand is renowned in the hotel industry for exceptional service, making it the perfect partner for our world-class  project. We look forward to working together with Wyndham Hotels & Resorts as we prepare for our opening late next year.”

In Southeast Asia and the Pacific Rim, Wyndham Hotels & Resorts currently has more than 120 hotels operating under its Ramada and other brands.

Once open, Ramada by Wyndham Ho Tram Strip will participate in the Wyndham Rewards system. 

Central bank tightens control of payment systems   

  

The State Bank of Viet Nam (SBV) will enhance the supervision on the country’s key payment systems, according to a newly-issued regulation of the SBV.

Under a circular which will take effect from January 1, 2019, the systems include the nation’s inter-bank electronic payment system, the foreign currency payment system (operated by the Joint Stock  

Commercial Bank for Foreign Trade of Viet Nam), the payment system for securities trading and the finance switching system.

According to the circular, the close control is aimed to ensure the safety, stability and efficiency of the systems. It is also designed to ensure payment compliance with the country’s laws.

The SBV also expects the tightened supervision will help minimise risks for payment service firms, as well as protect the rights and interests of customers using the services.

The move was made after local media reports of some Chinese-owned shops in Viet Nam using unauthorised Chinese payment machines to accept Chinese cards and QR-code payment from Chinese tourists in Viet Nam, raising concerns about unauthorised foreign currency payments and tax losses.

The People’s Committee of Khanh Hoa Province sent an urgent letter to the Government Office last month, asking for solutions to manage e-payments, saying there were signs of law infringement when Chinese tourists paid with Chinese yuan, or used certain POS and QR codes via smartphones. 

It was difficult to control these payment methods as there are no invoices when tourists use QR codes, the letter said, adding that identifying which POS devices are illegal is difficult.

Khanh Hoa authorities proposed technological solutions should be identified and regulations issued to control these payment methods.

LienVietPostBank to support Bac Ninh in building e-government     

Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank) and the  have signed a cooperation agreement in building e-government and smart cities in the province.

Under the agreement, LienVietPostBank pledged to support Bac Ninh province in speeding up the development of e-government and smart cities in accordance with the target of becoming a State-administered city by 2022.

The bank will provide electronic payment services, business services on the basis of digital data, digital banking, telecom infrastructure development and information technology, as well as IT applications for e-government and smart cities in the area.

Under the legal framework, the provincial People’s Committee pledges to create favourable conditions for LienVietPostBank to participate in programmes and projects of the province to meet the needs of building e-government, smart cities and electronic payment applications.

In order to implement the cooperative agreement, the committee appointed the Department of Information and Communication as the focal point of the region. For LienVietPostBank, the focal point is the Digital Banking Division. 

VNAT, VnTrip team up in digitalising Vietnamese tourism database

The Ministry of Culture, Sports and Tourism’s Vietnam National Administration of Tourism (VNAT) and the firm VnTrip recently signed an agreement on building a database of 360 degree pictures of tourism destinations.

The move is expected to promote Vietnamese tourism and attract more foreign tourists. The database will be connected with the Southeast Asia and global tourism systems to form a smart tourism management model.

Addressing the signing ceremony in Hanoi on September 12, VNAT Vice Director Ha Van Sieu said Vietnam is an attractive destination for foreign tourists. The country has received the “Asia’s Leading Destination” award from the World Travel Awards, he noted.

Sieu stressed that the fourth industrial revolution has affected all aspects of life, including tourism. He said that the VNAT has paid much attention to applying technology in tourism promotion in all markets, while backing projects and programmes using high technologies.

Under the deal, the VNAT and VnTrip will work together in applying 360 degree picture technology in tourism, while building a VnTrip application to access the 360 degree pictures, providing communications technology solutions in tourism, enhancing the efficiency of online tourism promotion and introducing digital products serving tourists.

The VnTrip 360 project aims to supply online services to tourists in a convenient manner at low prices.

Over the years, VnTrip and the VNAT have collaborated in many tourism campaigns, events and programmes such as “Super Selfie,” and #WhyVietnam, which use social networks in tourism promotion.

Vietnam’s core welding wires subject to Turkey’s anti-dumping duty

The Turkish Ministry of Economy has issued the final report concluding that Vietnam’s core welding wires have been sold under fair value at a margin of 27.9 – 29.65 percent, reported the Vietnamese Trade Office in Turkey. 

Turkey began anti-dumping investigation into core welding wires imported from Vietnam under the code 8311.20.00.00  on March 6 based on petitions filed by Gedik Kaynak Industry and Trade Ltd and Oerlikon Welding Electrodes and Industry Ltd. 

 Based on the report, the investigative agency will submit a proposal to the Turkish Competition Authority to issue the final conclusion on the case in the near future. 

The Ministry of Economy planned to hold a hearing on the case on September 12.-

World brand prizes to be presented in November     

The Asia Pacific Brands Foundation on Thursday announced that the BrandLaureate awards honouring the best brands this year will be held in November in Ha Noi.

BrandLaureate was first presented in Viet Nam in 2017, honouring 40 brands and personalities of Viet Nam, including Vietcombank, Vinamilk, Keppel Land Viet Nam, Lotte Viet Nam, RMIT Viet Nam and An Phuoc Garment – Embroidery.

This awards are presented in a number of countries to recognise strong brands and excellent branding based on criteria such as brand strategy, culture, communication, creativity and effectiveness.

The Asia Pacific Brand Foundation, founded in 2005, is a non-profit organisation dedicated to developing brands in a myriad of business backdrops.