Amazon launches websites supporting Vietnamese ecommerce sellers

Amazon, a U.S.-based multinational ecommerce platform, has launched shopping websites in Vietnamese, enabling local shop owners to run their online businesses on the platform more easily, heard attendees at a recent event in HCMC.

The event, titled “Selling Globally on Amazon,” was jointly held by the Vietnam Ecommerce Association and Amazon Global Selling, with the participation of 1,000 ecommerce operators and sellers. The two organizers reportedly joined forces for the first time to counsel the sellers on ecommerce solutions that work on amazon.com.

At the event, Amazon introduced the website Amazon Global Selling, at services.amazon.vn, and an official Facebook fan page, both displayed in Vietnamese. The two sites are expected to help remove language barriers and support local individuals and small-scale firms in joining the Amazon platform.

Joonmo Park, head of Amazon Global Selling in the Republic of Korea and Southeast Asia, said that whether they are individuals, small- or large-scale enterprises, all sellers on Amazon will have the opportunity to approach the platform’s 300 million customers.

The regional head added that Amazon has seen rapid growth in the number of Vietnamese online sellers trading on the Amazon Global Selling website, including manufacturers, brand owners and retailers. He expressed hope that new solutions would encourage more Vietnamese sellers to add their impressive locally made products to the platform, where they can access more customers around the world.

Addressing the event, Nguyen Ky Minh, director of EcomViet, under the Ministry of Industry and Trade, said sellers should make careful preparations for conducting their online business globally, such as arranging delivery services and payment channels, adding that they need to stay updated on the latest trends to meet customer demands.

Minh cited data from a foreign market research company saying that the ecommerce sector in Southeast Asia has posted revenue of some US$5.5 billion since 2015 and is forecast to hit an estimated US$88 billion by 2025, which will likely outstrip that of other sectors such as online travel agencies or ride-hailing services.

Developing the financial infrastructure for a cashless society

While the proportion of the national economy driven by cash transactions remains immense, experts believe that there will be a major shift toward using cashless payments in the coming time with drastic measures taken by the Government.

According to statistics from the State Bank of Vietnam (SBV) the technical infrastructure and provision of payment services in Vietnam are more diversified than many other nations in the region. To date, the banking system has nearly 18,300 automated teller machines (ATMs) and more than 289,000 points of sale (POS), while 76 banks provide internet banking services and 18 banks offer 5,000 transaction points with QR code payments.

Aside from banks, there are 27 intermediary payment service providers in operation offering products such as e-wallets, electronic money transfers, and electronic payment portals.

Despite the rapid increase in the number of banks and payment brokerage providing modern payment services, cash payments still account for the huge proportion of transactions throughout the country.

According to recent statistics by Visa Inc, cash and cheque transactions make up 55% of individual spending in the Asia-Pacific region while the figure for Vietnam is estimated to be as high as 90%. Although there has been robust growth in e-commerce, Visa say that cash payments still constitute 89% of online transactions in Vietnam.

In response to customers persevering in the use of cash payments amid the surge in new methods of payment by banks and payment brokers, Kevin Martin, Head of Retail Banking & Wealth Management Business for Asia-Pacific at the Hong Kong and Shanghai Banking Corporation Limited (HSBC), the situation is attributable a lack of non-cash payment options and this is a common factor in many nations in the Asia-Pacific region.

Pham Tien Dung, Director General of the SBV’s Payment Department also gave some reasons for the wider use of cash in almost all payment transactions such as the convenience and consumer habits, with people reluctant to change their payment methods due to the perceived insecurity of electronic payment systems in remote areas and banks’ difficulties in collecting fees for payment services.

Moreover, in some cases, incurring extra charged when making payments through banks is also a major sticking point for customers.

However, while the predominance of cash transactions remains a challenge for the proponents of e-payment systems, experts say the prospects for a non-cash society are completely feasible as banks and payment brokerage organizations have paid special attention to the application of digital payment solutions, thus contributing to the widespread use of non-cash payments in the national economy.

According to statistics released by Mr Pham Tien Dung, there has been a swift rise in the use of non-cash payments via modern payment forms. In the month of June 2018, there were 127 million payment transactions through Internet banking, valued at VND8,020 billion, while the number of payments via mobile banking surged to 81 million, with a valued of VND676 billion.

The most recent statistics from Visa have shown a 44% increase in payments using their cards in Vietnam for each month in the period from July 2017 to May 2018.

These figures represent a remarkable expansion in the use of non-cash payments. Under the SBV’s development strategy until 2015 with orientations to 2030, towards a cashless payment economy, the government has set a target of cutting the proportion of cash used in all payment methods to below 10% by the end of 2020 and to 8% by late 2025. 

To fulfill the mentioned targets, the Government has asked that the banking sector implement solutions to diversify channels providing banking services.

The sector is also being encouraged to deploy a nationwide ATM and POS network nationwide, encourage cooperation among banks and Fintech companies, devise policies to expand the number of cash access points and introduce modern payment methods to the wider population especially those living in remote and difficult areas.

Dinh Ba Tien, a member of the Board of Directors of VietUnion (Payoo) pointed out that to speed up cashless payments, beyond the determination of the banking sector there should be synchronized coordination among relevant ministries, agencies, localities and business communities.

Management agencies should consider incentivising the use of new e-payment methods such as QR codes and in terms of fees and mechanisms to allow service providers to receive bill payments for services regarding electricity, water, taxation, schooling fees. Furthermore, particular attention should be paid to the development of common standards in payment connectivity.

Top 26 commodities see exports exceed US$1 bn in 9 months

Twenty-six of Vietnam’s export commodities brought in more than US$1 billion in export value over the past nine months, making up 90.3% of the country’s total export revenue, according to the General Statistics Office (GSO).

In the 9-month period, Vietnam fetched US$178.91 billion in export revenue, up 15.4% compared to the same period last year, with the export value of commodities in the third quarter reaching US$64.73 billion, up 13.9%.

GSO Director Nguyen Bich Lam said that the domestic sector earned US$51.07 billion, up 15.5%, while the FDI sector raked in US$127.84 billion, up 14.6%, noting that five commodities grossed a revenue of more than US$10 billion, accounting for 58.2% of the total export value.

Some key export commodities continued to report strong growth over last year’s corresponding period, such as telephones and components, garment and textiles, electronic products, computers and components, equipment and machines, tools, footwear, wood and wooden products, vehicles and spare parts.

Mr Lam pointed out that the export proportion of some key commodities belonged to FDI sector. In addition, some farm and seafood products also saw good growth such as aquatic products, fruit and vegetables and rice.

The import value of commodities in the reviewed period also surged 11.8% to US$173.52 billion, with 30 items exceeding US$1 billion, making up 87.5% of total import value.

Key import items with high import value include electronics, computers and components, equipment and machinery, telephones and components, fabric, iron, steel, plastics, oil and gas, metal, footwear, chemicals, and garment and textile materials.

Vietnam recorded a trade surplus of US$5.39 billion in the nine months, with the domestic sector and FDI sector (including crude oil) enjoying a trade surplus of US$18.26 billion and US$23.65 billion, respectively.

Expo venues in HCM City nearly fully booked till end-2019

Trade fair and exhibition organizers may face difficulties finding halls to host events in Ho Chi Min City, as most sites have been fully booked, according to officials.

Thuong My An, general director of the Saigon Exhibition and Convention Joint Venture Co., Ltd, owner of the Saigon Exhibition and Convention Center (SECC) in central Phu My Hung, District 7, said SECC will only be available for booking during the final week of the year. Meanwhile, event schedules for next year are full already, except for several weeks in January and February.

An added that SECC company is in negotiations with some clients to organize fashion shows at the end of the year. For 2019, a few clients have yet to make reservations, as they are reportedly considering the contents of their events.

Among the trade show and exhibition organizers, up to 60% are foreign enterprises. In addition, event scales are becoming larger. Some organizers, for instance, not only set up booths covering all the 8,800 square meters of the center’s inner floor space, but also rented additional areas outside, raising the total exhibition area to 23,000 square meters.

Aside from the expanding scale, SECC company has reported a wider variety in event types being scheduled. In particular, organizers have diversified show topics to include tourism, fashion, automobile, footwear, machinery, hi-tech agriculture or food and beverage.

Also, the demand for hosting trade shows and expos is rapidly growing. Many of the events are held annually. Additionally, the rebooking ratio of old customers remains high, at some 80-90%, An said, adding that SECC company has plans to expand the center in the near future.

Apart from SECC, the city is to build an international exhibition center, covering approximately 14 hectares of land, and fully providing services to serve formal meetings, events, and residences in the Thu Thiem New Urban Area. The center is slated to open in the next few years, aiming to cope with the current shortfall of expo areas.

Industrial production posts seven-year high

The latest figures provided by the General Statistics Office (GSO) show that the index of industrial production (IIP) rose by 10.6 per cent in January-September – the highest rate since 2012.

Nguyễn Bích Lâm, GSO’s General Director, said that the manufacturing and processing industry provided most of the momentum behind industrial production growth.

Lâm said that the production capacity of the economy had expanded significantly in recent quarters.

Statistics showed that the manufacturing and processing industry rose by 12.9 per cent in the nine-month period, contributing 9.9 percentage points to the overall growth.

Other industries also posted growth, such as power production and distribution – up 9.7 per cent, coal production – up 53.1 per cent, medicines and chemicals production – up 25.9 per cent, metal production – up 8.2 per cent, and electronics products and computers by 14.8 per cent.

Only the mining industry saw a decline of 2 per cent, mainly due to the fall of 11.7 per cent in crude oil production.

All 63 provinces and cities saw increases in IIP, of which, the central province of Hà Tĩnh recorded the highest growth at 110.4 per cent, followed by Thanh Hóa Province (up 28.6 per cent), Hải Phòng (up 25.2 per cent), Bắc Ninh (up 15.9 per cent) and Vĩnh Phúc (up 15.8 per cent). 

VN sees rice export growth by year-end

Viet Nam expects rice exports to regain strength by the end of the year after a brief lull, said Tran Van Cong, deputy director of the Agro Processing and Market Development Authority under the Ministry of Agriculture and Rural Development.

 Over the first nine months of this year, Viet Nam shipped 4.9 million tonnes of rice abroad, earning US$2.5 billion, up 22 per cent from the same period last year.

Cong said that this is an impressive result, attributing the achievement to the effective rice sector restructuring programme which focuses on developing high-quality and fragrant rice to bolster exports to choosy markets.

Up to 80 per cent of exports now are classified as high-quality rice and sold at more than $500 per tonne, he said, adding that market diversification has been a catalyst for Vietnamese rice shipments.

China’s sudden imposition of a 50 per cent tariff on rice imports from July affected rice consumption in this market, especially sticky rice. At some points, Chinese traders paid only $380 per tonne for sticky rice, compared to the $530-540 per tonne at the beginning of the year. However, Vietnamese firms have worked to enhance rice exports to Iraq, the Philippines, Malaysia, the Ivory Coast and the United Arab Emirates (UAE).

The price of sticky rice has also increased from just below $400 per tonne in July and August, to $440 per tonne now. Furthermore, as local firms reduce export costs, Vietnamese rice will gain a competitive edge over that grown in India and Thailand, Cong noted.

In the coming time, purchase demand will is forecast to pick up in some countries, such as the Philippines, which will be needing to import an additional 500,000-800,000 tonnes of rice by the end of this year to refill exhausted reserves and stabilise the domestic rice price. Meanwhile, Indonesia and several African countries also hold great demand for rice imports in response to output decline due to floods and storms.

Besides, the Government’s new Decree 107/2018/ND-CP replacing Decree 109/2010/ND-CP, which takes effect from October 1, will remove difficulties and legal barriers for rice exporters to expand their foreign markets.

According to the decree, rice exporters will no longer be required to own rice storage, paddy milling and grinding facilities with processing capacities of 5,000 tonnes of rice. In addition, customs procedures will be simplified, creating favourable conditions for enterprises to export more to large consuming markets like China, Europe, Africa, Iraq, Cuba and the UAE.

Pham Minh Thien, general director of Co May Co Ltd, said many provisions on rice export have been modified to suit the development of enterprises. It has created more favourable conditions for businesses to enter the market and to reduce costs significantly.

The amendments to the Decree 109 which was issued eight years ago will promote businesses and farmers to put more investment in the production and trading of high-quality rice. Farmers are encouraged to supply high-value rice for rice exporters.

Free e-learning course launched to support SMEs     

The Centre for Support of Small and Medium-sized Enterprises in the North (TAC-Ha Noi) in partnership with MVV Entrepreneur Academy Corporation launched SME E-learning on Friday in Ha Noi, a free online course for SMEs.

SME E-learning features various online lessons covering key corporate issues, including sales and marketing, finance, accounting, human resource management, production management, strategic thinking and leadership skills, said director of TAC-Ha Noi, Le Van Khuong.

The move is part of the centre’s efforts to assist with the enforcement of the Law on Support for SMEs, which took effect from January 1, 2018, he noted, adding that it aimed to provide fundamental knowledge and management skills for business managers and startup owners.

The course was built on the MVV Everlearn e-learning platform using cloud computing technology to offer integrated advanced learning tools.

With this system, learners can study anywhere at any time on their smartphones. They will also benefit from a wide range of online learning materials, including numerous case study videos, and at the same time, they can contact and interact with each others on the system.

Khuong said he hoped that SME E-learning would encourage more Vietnamese SMEs to pay heed to human resources.

This year, the course has provided 15 online lessons developed by the MVV Entrepreneur Academy Corporation. All the lessons are available on the website: vietnamsme.gov.vn and the Facebook fanpage: facebook.com/TACHANOI.

Learners can register to join the course via http://bit.ly/sme-elearning.

According to the Ministry of Planning and Investment, about 98 per cent of the over 700,000 businesses in Viet Nam were SMEs and the private economic sector – of which SMEs made up the majority – contributed about 48 per cent to the country’s GDP and created over 50 per cent of total jobs. 

Ha Noi to host seafood and handicraft fairs     

Two fairs showcasing seafood and handicrafts will be held in the capital in October and November, a representative of the Trade Promotion Centre for Agriculture under the Ministry of Agriculture and Rural Development told a press conference last week.

Following the success of a Vietnamese tra fish and aquatic products exhibition in the city in 2017, the seafood fair will take place from October 6-10, Dao Van Ho, director of the Trade Promotion Centre for Agriculture, said.

Ho described the event as a good opportunity to maintain the sustainable production and consumption of Vietnamese products, promote domestic trade and consumption, and attract investment in aquaculture.

Apart from fresh seafood such as tra fish, shrimp, cuttlefish and octopus, the fair will also showcase equipment and materials used for aquaculture, and feed for aquatic products and support services, he said.

A craft village fair and an international seminar titled “One Commune – One Product” (OCOP), will be organised in the city from November 17-21.The fair is expected to introduce outstanding craft village models nationwide, promote the OCOP programme, and expand handicraft markets. 

BMW shows debut in Viet Nam     

The first-ever BMW Joyfest and BMW Motorrad Day in Viet Nam are being held at HCM City’s Sala Urban Area in District 2 with a range of activities and test drive experiences for BMW customers and enthusiasts.

At the BMW Joyfest on September 28 and 29, participants have the opportunity to view the latest BMW models such as the 7-series, which has made a comeback after a two-year absence from the Vietnamese market, the X2, which has come for the first time to Viet Nam, the MINI 3-door, and MINI 5-door, said Pham Van Tai, general director of Truong Hai Auto Corporation (Thaco).

Customers will enjoy professional car performances and test drives under the guidance of BMW and BMW Motorrad experts.

There are also other activities for all ages such as outdoor games, an acoustic performance, magic shows, and a children’s car race.

BMW Motorrad Day will take place on September 30 featuring the latest BMW Motorrad motorcycles and BMW/MINI models and a motor show by stunt rider Mattie Griffin.

Dr Markus Schramm, CEO of BMW Motorrad, said: “Viet Nam is very important market for us because the growth expectations are very high.”

Viet Nam has a big population of roughly 100 million people, and a very young population with an average age of 30, he said.

“So we see a bright future for BMW Motorrad here in Viet Nam. We are very happy that we found a very strong partner.”

He said next year in his group and Thaco would have two areas of focus: dealer development and building the brand in Viet Nam.

Thaco is the new official importer of BMW and MINI vehicles in Viet Nam following a deal with the German giant last January.

Taisho attempts to purchase more DHG shares     

Japan’s Taisho Pharmaceutical Co Ltd will continue attempting to purchase the Hau Giang Pharmaceutical JSC (DHG)’s stakes after the Vietnamese company lifted the cap on foreign ownership to 100 per cent.

The Japanese investor registered to buy three million DHG shares, equivalent to 2.3 per cent of DHG’s capital, from October 2-31. Transactions will be made through order matching or negotiation.

At the price of VND100,000 (US$4.29) per share on September 28, Taisho is expected to spend around VND300 billion on the purchase.

If the deal is successful, Taisho’s ownership in DHG will increase from 32 per cent to 34.3 per cent.

In August, Taisho also acquired more than 9.2 million DHG shares, or 7.6 per cent stake, after the Vietnamese drug company relaxed its cap on foreign ownership to 100 per cent.

Taisho will remain DHG’s second-largest stakeholder after the deal, following Viet Nam’s sovereign fund, the State Capital Investment Corporation (SCIC), which holds 43.31 per cent stake.

Taisho Pharmaceutical has charter capital of 29.8 billion yen, equivalent to over VND6 trillion ($257.5 million). It focuses on manufacturing, trading pharmaceutical and cosmetic products.

In related development, Templeton Frontier Markets Fund sold three million DHG shares on August 21, which cut its ownership to 4.1 per cent from 6.4 per cent and means it is no longer a DHG major shareholder.

DHG, founded in 1974, is one of Viet Nam’s leading pharmaceutical companies. It reported net profit of VND104 billion in the first half of this year, down more than 82 per cent from the same period of last year.

Its shares, coded DHG on the Ho Chi Minh Stock Exchange, have fallen 13 per cent in value this year. 

SSI fund invests again in maternal, baby products retailer Con Cung     

SSI Asset Management said a fund it jointly manages with Japan’s Daiwa Corporate Investment Co Ltd has made a second round of investment in Con Cung, the leading retail chain for maternal and baby products.

Con Cung, founded in 2011, has over 350 stores throughout Viet Nam.

Con Cung used the first round of investment by Daiwa-SSIAM II in November 2016 to successfully develop and integrate a children’s toys store (Toy City) and apparel (Concung Fashion) store. The Con Cung-Toycity-Concung Fashion chain is expected to expand more swiftly in future.

Le Thi Le Hang, CEO of SSI Asset Management Company, said: “We maintain strong confidence in the founders and their young management team. The team has a strong ethical foundation, and is highly capable with the execution of technology platforms to continuously improve the customer experience.

“Besides this additional capital, we shall continue to support the company through our investment expertise and our wide international network, especially Japanese partners.

“We believe that this will open a new exciting chapter and enable the company to accelerate its growth initiatives and achieve its strategic goals.” 

Firms seek new paths to customers

With the rapid evolution of technology, enterprises need to find new ways of interacting with customers to thrive in the digital age, experts have said. 

Speaking at the 2018 CEO & CMO Summit Vietnam held recently by the Mobile Marketing Association (MMA) Vietnam in Ho Chi Minh City, Christy Le, country director of Facebook Vietnam, said yesterday and today’s worlds are different in interaction points.

In yesterday’s world, there were advertisements in billboards, magazines or newspapers, stores, word of mouth, and television, while in today’s world, besides these means they also include Twitter, Instagram, trunk show, email, retailers’ communication, blogs, Snapchat, and influencer communication, she said.

Digital media is influencing both online and offline purchases, with mobile being the primary driver, she said.

Since today’s customers tend to interact with businesses through multiple channels, integrating online and offline interaction with customers can help businesses drive awareness, online sales, store visits and offline sales, she said.

To exploit the opportunity to interact with consumers, both online and offline, businesses must depend on their database.

“Data is an invaluable resource in the Fourth Industrial Revolution age, with artificial intelligence and machine learning, their impact is even bigger.”

Vietnamese firms should utilise existing global technologies and data platforms smartly and strategically to create breakthroughs for their businesses, she said. 

Talking about digital opportunities in Vietnam, Konstantin Matthies, a micro-economics expert and engagement manager at AlphaBeta’s Singapore office, said Vietnam has a number of strengths such as a robust app economy, but “there is room for improvement”.

Creating digital talent and guaranteeing a conducive tech investment climate would be key drivers of Vietnam’s success, he said.

“It is the responsibility of companies and industry to engage in open dialogue with policy makers on how to craft progressive policy and how to best leverage this opportunity.”

Imbedding multinationals as anchors by offering the right incentives can boost availability of start-up financing and skills transfers, he said.

“The digital economy provides significant opportunities across a variety of industries and could potentially be a major driver of exports.

“Poorly crafted regulations can undermine the potential benefits of the digital economy.”

Delegates also talked about total audience measurement, how technology help increase return on investment, agile marketing, how to build competitive advantages in the age of disruption, blockchain and its implications to the marketing industry, latest consumer technology products that would impact the environment, and other topics.

According to Sinthu Peatrarut, who helms Nielsen’s media business in Thailand, Myanmar and Vietnam, in today’s fragmented media market, it is no longer effective to think of each advertising platform as a separate unit within a media plan, requiring businesses to have audience measurement in various channels to effectively implement customer interaction campaigns.

Phan Bich Tam, country manager, Mobile Marketing Association in Vietnam, said the CEO & CMO Summit is an annual event being held world-wide.

This is the first time it is being held in Vietnam, and more than 300 leaders and marketers of large enterprises in various industries in Vietnam took part, she said.

The event provided an opportunity to gather, connect and share experiences among businesses from a range of industries that have been using technology to build competitive advantages and sustainable business, she said.

Qatar Airways flights to connect Da Nang with Doha

A delegation of the Party Committee of central Da Nang city has visited Qatar and had a working session with executives of Qatar Airways to discuss cooperation between the two sides.

Accordingly, Qatar Airways will launch a direct air route from Doha to Da Nang starting on December 19 this year. It will offer four flights a week using aircraft B787 Dreamliner.

Additionally, the airline will support promoting the city’s tourism, investment and trade on its media channels in one month since the route launch. It will also coordinate with Da Nang to organise farm and press trips from potential markets in Europe and the Middle East to the city and build a communication plan to popularise the air route.

Da Nang International Airport currently handles 200 flights per day, including 50 international flights. Foreign visitors to the city by air mainly come from East Asia, ASEAN countries, the Republic of Korea, Japan, the US and Europe.

Doha is a major transit point of international routes, so the opening of direct flights from Doha to Da Nang is expected to help the Vietnamese city attract more trade partners, investment and tourists from the Middle East, Africa, the US and Europe.

Cargo through seaports surges

The volume of cargo transported through Vietnamese seaports has soared in the first nine months of 2018, particularly through ports in Quang Ninh and Ha Tinh provinces, according to the Vietnam Maritime Administration.

In the January-September period, nearly 386 million tonnes of cargo was shipped through seaports, including 13.3 million TEU of containers, an increase of 18 percent and 27 percent, respectively, over the same period last year.

In September alone, nearly 42.9 million tonnes of cargo was handled at seaports including 1.4 million TEU of containers, up 18 percent and 30 percent, respectively.

The largest volume of shipments was recorded at ports in Ho Chi Minh City, Vung Tau, Quang Ninh and Hai Phong.

Other ports saw large annual increases in the volume of cargo including Ha Tinh (up 97 percent), Quang Nam (up 83.5 percent), and NgheAn (up 81 percent).

In particular, the number of containers handled at Quang Ninh ports sharply rose by 161 percent in the first eight months of this year due to the effective trial run of the container terminal at Cai Lan port, according to the Vietnam Maritime Administration.

However, several ports in Kien Giang and Quang Tri provinces reported 32-67 percent decreases in the volume of shipments.

Agro-forestry-fishery exports rise 9.3 percent in nine months

Vietnam earned about 29.54 billion USD from agro-forestry-fishery exports between January and September, up 9.3 percent from the same period of 2017 and equivalent to 73 percent of this year’s target.

At a press conference on September 28, Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said although natural disasters have greatly influenced agricultural, forestry and aquacultural production, the sector has fulfilled many targets with results higher than in the previous years, especially in terms of growth and export revenue.

In the reviewed period, agro-forestry-fishery production value grew by 3.81 – 3.82 percent year on year. Meanwhile, GDP in the sector is estimated to increase by 3.5 – 3.6 percent.

Major contributors to the expansion are fisheries (up 6.46 percent), forestry (6 percent), cultivation (3 percent) and animal husbandry (2.41 percent). 

Surges in value and output were recorded in rice, fruits and vegetables, export poultry meat, tra fish, and timber and wood products.

Deputy Minister Tuan said the sector will press on with agricultural restructuring in the coming time. In October, it will boost the output, value and export turnover of the products with rising demand and good markets so as to help achieve the targets set for 2018. 

CPI rises in major cities in September

Hanoi's consumer price index (CPI) in September increased 1.08 percent against the previous month, and 5.16 percent over the same period last year, the municipal Statistics Office announced. 

The rise was mainly driven by educational services, which were up 11.78 percent, as effects of the new school year and the increase of tuition fees of some secondary and high schools, universities and colleges in the public system. 

In the month, the groups of transport; and housing, electricity, fuels and construction materials edged up 0.58 percent and 0.31 percent as compared with August. 

Between January and September, the index expanded by 3.99 percent year-on-year, with only the group of post and telecommunications down 1.38 percent. 

In September, the city’s total retail sales and services revenue reached 44.3 trillion VND (1.9 million USD), up 2.1 percent against the previous year, and 8.1 percent year-on-year. 

The value in the first nine months of this year stood at 367.8 trillion VND (15.8 million USD), up 8.9 percent year-on-year. 

This month, the city exported more than 1.3 billion USD worth of goods, down 2.1 percent against the previous month but up 41.8 percent compared with the corresponding period last year. 

In the first three quarters, the city’s export turnover hit 10.5 billion USD, representing a year-on-year rise of 21.6 percent. 

Meanwhile, its import value reached 2.4 billion USD, down 2 percent from August but up 9.1 percent year-on-year. 

During the nine-month period, the city imported 22.4 billion USD worth of goods, an increase of 6.5 percent against the same period last year.  

Hanoi is continuing with drastic solutions to reform administrative procedures, attract investment and facilitate the operation of businesses in the locality. 

Ho Chi Minh City’s Statistics Office said on September 29 that the city’s CPI in September expanded by 0.81 percent compared with August and 3.42 percent from the same period last year. 

Among the 11 groups of commodities, only post and telecom services dropped 0.06 percent from August. 

The highest rise was seen in the group of educational services, up 5.22 percent; followed by housing, electricity, fuels and construction materials, 0.33 percent, other goods and other services, 0.12 percent; transport, 0.01 percent; household utensils, 0.43 percent; and culture, entertainment and tourism, 0.45 percent, respectively. 

In September, gold prices fell 0.24 percent while US dollar increased 0.09 percent against the  previous month.

Binh Thuan welcomes 4 million tourist arrivals in first nine months

The south central coastal province of Binh Thuan welcomed more than 4 million tourists in the first three quarters of 2018, up 11 percent from the same period last year.

The number included approximately half a million foreigners, mostly Russian and Chinese, up 13 percent year on year, according to the provincial Department of Culture, Sports and Tourism. The province earned about 9.5 trillion VND (404.5 million USD) in revenue from tourism, up 20 percent.

Most domestic visitors to Binh Thuan were from southern provinces that came for summer vacations and during public holidays, like Tet (Vietnamese traditional New Year) thanks to its sunny weather year-round.

The province has 468 accommodation facilities, offering more than 14,600 guest rooms, including 129 hotels rated 1 – 5 star. Some 390 tourism projects, worth more than 59 trillion VND (2.51 billion USD), are being operated in the province. These include 23 foreign projects with total investment of 13 trillion VND (553.5 million USD).

In recent years, Binh Thuan has made efforts to make tourism a key local industry. The province has added more tourism services in terms of transportation, shopping and underwater sports to serve the increasing demand of holidaymakers.

It has also ramped up activities to promote local tourist attractions and expand cooperation with other popular destinations in the south central coast and Mekong Delta.

Inspections have been intensified on tour operators and lodging providers to ensure they comply with related regulations while more lifeguards and fire fighters have been employed to ensure safety.

Binh Thuan is among Vietnam’s top tourist destinations thanks to its long and stunning beaches, friendly locals and safe environment. 

The province’s most popular beach is Mui Ne in the coastal city of Phan Thiet, which is set to become the main resort centre of Binh Thuan by 2025. 

This year, the province aims to receive about 5.75 million visitors, including 670,000 foreign travellers, and generate 12.85 trillion VND (547.1 million USD) in tourism revenue.

Da Nang takes actions to attract more FDI investments

As foreign direct investment (FDI) capital has been a major driver for development in the central coastal city of Da Nang, the city is working to attract more FDI.

As of September 15, the city housed 660 FDI projects, securing total capital of more than 2.87 billion USD. FDI has a crucial role in boosting economic growth, and contributes considerably to the city’s export revenue.

FDI firms exported 557 million USD worth of products in 2015 and gained 765 million USD in 2017, which made up 52.2 percent of the city’s total exports. By September this year, export revenue earned by FDI enterprises is estimated at 880 million USD, or 53.3 percent of the total shipment value. 

Some 44,000 local labourers are employed at FDI companies. Last year, the firms contributed more than 171.33 million USD to the city’s budget, up 112.87 percent from 2016.

During January-August, FDI businesses contributed 120.8 million USD to the State budget. The sector also helps promote a positive shift in economic structure, from industry-service-agriculture to service-industry-agriculture. Thus, important production industries have been formed in the city, including electronics, motorbike, automobile spare parts and automobile assembly.

According to Truong Quang Nghia, Secretary of the municipal Party Committee, as the city is accelerating FDI attraction, authorities have joined hands with foreign diplomatic offices in Vietnam to promote the city’s image and potential to investors.

The city has worked to publicise all planning information to ensure transparency and allow investors to decide the most appropriate investment projects, he said.

Hoping to become a high-quality tourism, service and high-tech hub of Vietnam, the city is prioritizing high-tech projects, including information and technology, bio-technology, automation, new material technology, environmentally friendly projects, supporting projects in engineering and precision engineering, as well as top-quality services, particularly in trade, tourism, logistics, health care and education.

The Da Nang Hi-Tech Park has more than 300 hectares of clean land with full technical infrastructure, which is available for investments in bio-technology, microelectronics, optoelectronics, automation, information and technology, precision engineering, nano technology and environment technology.

Vice Director of the municipal Department of Planning and Investment Le Thi Kim Phuong said the city is preparing infrastructure to draw investors. It is completing procedures to develop the Lien Chieu port project to serve import-export activities of FDI firms.

Meanwhile, the city is branching out new industrial parks like Cam Le (30 hectares), Hoa Nhon (30 hectares), Hoa Phong (50 hectares), Hoa Khanh Nam (11.8 hectares) and Hoa Hiep Bac (13 hectares).

Additionally, it is urging the study of an international hospital project to serve healthcare demand in the city. The hospital’s location is planned in Hoa Xuan ward, Cam Le district, and Hoa Quy ward, Ngu Hanh Son district.

As part of efforts to connect FDI and domestic firms, the municipal People’s Committee recently issued a regulation on supporting industry development policy. Accordingly, the city will give financial support to businesses engaged in studying new technologies.

With pilot production of supporting industrial products, investors will receive maximum financial aid of 300 million VND (12,900 USD). Meanwhile, those who study and develop production technologies will be provided up to 500 million VND (21,500 USD). Projects to pilot the manufacture of supporting industrial products will receive a maximum of 100 million VND (4,300 USD) in aid.

The city will focus on attracting investment from the Republic of Korea, Japan, the US, Singapore, members of the Organisation for Economic Cooperation and Development (OECD) in Europe like the UK, France and Germany, who have well-developed economies and hold strengths in services, high-tech industry, real estate, high-tech agriculture, healthcare and education.