Investors from Japan’s Hyogo Prefecture favour Ha Nam

Many firms in Japan’s Hyogo Prefecture want to invest in Ha Nam for its favorable business climate, and investment incentives designed exclusively for Hyogo, said governor Toshizo Ido.

The Hyogo official shared the information when visiting the northern province of Ha Nam and meeting with local authorities on November 1.

At the function, Nguyen Xuan Dong, Chairman of the Ha Nam People’s Committee, said his province considers Japan a top partner in cooperation and investment attraction.

Ha Nam has earmarked the Dong Van III industrial park, which has a favorable location and well-built infrastructure, for Japanese investors, he added.

To date, the province houses more than 70 Japanese-invested projects worth over 800 million USD, with seven from Hyogo investors.

Dong said Ha Nam values the friendship it has with Hyogo and other Japanese localities and expects the Hyogo delegation’s visit will help boost mutual understanding and trust between the sides.

The official said he expects the Japanese governor to continue introducing local investors to Ha Nam and directing relevant agencies to deepen the bilateral relations.

For his part, Toshizo Ido said that Ha Nam and Hyogo inked a cooperation pact in 2016 and that his current visit aims at strengthening the bilateral partnership in trade and investment.

After the meeting, the delegation toured a number of Japanese companies operating in the Dong Van II and III industrial parks.

Hyogo Prefecture located in the south of Japan has strengths in manufacturing, medical equipment and medicine, and heavy industries like ship building and electricity. It is home to a large number of overseas Vietnamese.

Vietnam’s exports to India rise sharply

Vietnam’s export turnover to India in the first nine months of 2018 hit 5.1 billion USD, according to preliminary statistics released by the General Department of Vietnam Customs. 

The figure made up 2.8 percent of the country’s total export value and represented a year-on-year increase of 88.34 percent. 

India was one of Vietnam’s three export markets posting the highest growth, totalling more than 20 percent during January-September, along with China and the Republic of Korea (RoK), the department said. 

Vietnam mainly exported industrial and agricultural products to India, of which machines, equipment and tools and spare parts brought home most with 1.4 billion USD, accounting for 28.6 percent of the total and up nearly 5.9 times compared with the same period last year.  

Recently, India has imported rattan products and carpets from Vietnam at a rapid pace, up 15.9 times. 

Staples with export growth exceeding 100 percent included steel and plastic products, transport means and spare parts. 

The two countries have set a target of 15 billion USD in bilateral trade by 2020.

Vietnamese startups to compete in November

The final round of NTT Com Startup Challenge, a contest for Vietnamese startups, will be held in Ho Chi Minh City on November 22.

The judge of the contest includes shareholders or leaders of leading businesses such as Golden Gate Ventures and NTT DOCOMO Ventures, along with startup experts. 

Apart from a prize worth 10,000 USD, free Japanese trips and access to ICT infrastructure of NTT Com will be offered to winners. 

Vietnam is the third destination of NTT Com Startup Challenge in Southeast Asia, after Indonesia and Malaysia. 

Through the contest, NTT Com wants to help startups access investors and infrastructure of the group, thus contributing to the development of startup ecosystem in Asia and in Vietnam in particular. 

NTT Communications (NTT Com) is a subsidiary of Nippon Telegraph and Telephone (NTT) Corporation of Japan. It provides network management, security and solution services. 

In 2017, NTT Com generated 106.5 trillion USD in revenue, ranking fifth in Fortune Global 500 list of the world’s largest companies.

Agriculture ministry advises boosting shrimp farming

The Ministry of Agriculture and Rural Development has sent a proposal to the chairpeople of shrimp-rearing provinces and cities, asking the authorities to encourage farmers to boost their brackish water shrimp farming activities during the remainder of the year, despite the periodic outbreak of diseases affecting the shrimp industry.

The ministry noted that the market is showing an uptrend for the shrimp sector. In particular, the U.S. Department of Commerce (DOC) on September 10 announced the 12th Period of Administrative Review’s final results on dumping tariffs on Vietnamese shrimp products, placing it at 4.58%. This final tariff is much lower than the preliminary figure of 25.39% that the DOC had issued on March 3 this year.

Besides this, a variety of factors including the rising demand for shrimp in China, the EU market’s growing interest in Vietnamese shrimp, the rising price of shrimp in the country and favorable weather all contribute to shrimp production and processing development, as well as export performance.

With the new proposal, the ministry wants enterprises to capitalize on market opportunities, and avoid a shortage in supply during the remaining months of the year and the first months of 2019.

In its proposal, the ministry also required the authorities of these provinces and cities to closely examine and supervise the status of diseases affecting shrimp and to control the quality of shrimp breeds.

However, Vo Hong Ngoan, a farmer in Vinh Trach Dong Commune, Bac Lieu Province, told The Saigon Times that the ministry's move goes against traditional practices; since between October and the end of the year, the industry management agencies typically warn farmers against rearing shrimp, as the weather is unstable, and there is a high risk of diseases being spread.

Chairman of My Thanh Shrimp Farming Association in Soc Trang Province Vo Quan Huy shared this opinion, noting that the weather during the remainder of the year will not be stable, creating disadvantages for the shrimp industry.

France shares experience with Vietnam in developing high-speed railway lines

The reality and experience of transport infrastructure development in Vietnam and in the world have shown that quality and efficiency of transportation system`s infrastructure are always parallel with application of modern science and technology in the process of construction and production.

Experts from France shared experience in developing high-speed railway lines at the international workshop “Grand Paris express metro, high-speed railway lines, smart cities - new study cases for Vietnam’s future” held in Hanoi on October 23.

The workshop was co-organized by Tractebel Company (Engie Group, France) in collaboration with AVSE Global, the University of Transport, the University of Transport Technology, with the participation of representatives from ministries, branches and international organizations, foreign corporations and Vietnam’s corporations.

 

The workshop aimed to share national strategic visions and international experiences with Vietnam, and to create opportunities for networking with national and international organizations to discuss and cooperate in large-scale projects and technology transfer.

Speaking at the workshop, Deputy Minister of Transport Nguyen Ngoc Dong said that transportation was identified as an important part of socio-economic infrastructure that needs to be invested with a fast and sustainable pace to pave the path for socio-economic development. 

The reality and experience of transport infrastructure development in Vietnam and in the world have shown that quality and efficiency of transportation system's infrastructure are always parallel with application of modern science and technology in the process of construction and production, Dong added. 

He affirmed: "This workshop provides useful information on the subject of metro, high-speed railway lines and smart cities to create an exchange network of international knowledge and experience on Vietnam’s projects."

Referring to experience of building and managing metro projects in Paris, a Tractebel representative said that Paris has a network of more than 200km of railways and is currently expanding in directions with metro lines. 

"The project of high-speed railway lines aims to develop the country’s economy and improve the people’s life quality, so the project cannot cause economic damage in the affected area of the project," stressed Giorgio Fantauzzi, an expert from Tractebel Company.

The expert also said invisible elements such as archeology, conservation, geology, hydrology can affect the structure of buildings, economic and social benefits, thus, the construction of underground tunnels must apply advanced technology to ensure maximum safety.

According to Ismail Himdi, director of business development from Tractebel Company, Vietnam has a lot of potential and skilled and experienced engineers to develop high-speed railway lines. 

Then, French and Vietnamese experts exchanged and discussed the themes of sustainable and smart transport in Vietnam at the workshop.

Besides, international lessons and experience for Vietnam and applied tools in smart urban development and sustainable development were also mentioned at the workshop.

Farmer delighted as fresh betel-nut surges

Betel-nut farmers in the central provinces are delighted as price of betel-nut surges to VND27,000 – VND30,000 ($1.15- $1.28), VND10,000 higher than early in 2017.

Farmers are harvesting betel-nut in thousands of hectares of land. Local kilns in Quang Ngai, Quang Nam and Thua Thien – Hue provinces where have seen bumper betel-nut yield are working at their full capacity to deliver products to traders for exports to China.

Averagely, each kiln buys 3,4 ton fresh betel-nuts a day to dry for export; accordingly, rural laborers are employed.

Head of the Department of Agriculture and Rural Development Pham Tan Son in Nam Dong District of Thua Thien – Hue said that price of betel-nut is VND30,000 a kilogram including branches and fruits.

A tree produces 20 – 25 kilogram and 1,400 trees are grown in one-hectare land.

Residents earn good profit to improve their living. Farmers are given training in preventing diseases in the trees by the agriculture sector.

Additionally, the local Agriculture and Rural Department encouraged farmers to chop down sick trees and expand the consumer market.

VNDIRECT's Q3 income up 9%

VNDIRECT Securities Corporation (VND) has released its third quarter consolidated financial statements, with operating income at VND342.5 billion ($14.6 million), up 9 per cent year-on-year. The biggest contributor was brokerage activities, with VND115.8 billion ($4.9 million), up 31 per cent.

Net after-tax profit was VND105.6 billion ($4.53 million); virtually unchanged from last year’s third quarter.

In the first nine months of this year it recorded net sales and net profit of VND1.19 trillion ($51.02 million) and VND330 billion ($14.1 million), respectively.

After-tax profit was 48.5 per cent of the targeted VND680 billion ($29.1 million).

Total capital at the end of the third quarter was up 34 per cent against the beginning of the year to VND10.8 trillion ($466.9 million). Equity increased VND576 billion ($24.7 million) to VND3 trillion ($128.6 million), mainly from the successful offering of more than 50 million shares to existing shareholders.

Debt was up 39 per cent since the beginning of the year to VND7.7 trillion ($304 million), mainly due to the issuance of VND700 billion ($30 million) in short-term bonds, VND253 billion ($10.8 million) in long-term bonds, and short-term loans of VND1.6 trillion ($68.7 million). Short-term debt accounted for 92 per cent of total liabilities and 66 per cent of total assets.

The two largest items among VNDIRECT’s total assets are held-to-maturity investments, at VND4.9 trillion ($210.4 million), and loans of VND3.3 trillion ($141.7 million).

VNDIRECT is one of the most reputable securities companies in the market. It was founded in 2006 by its founding shareholder: the IPA Investment Group. Business activities include securities brokerage, securities depository, corporate finance advisory, proprietary trading, underwriting, and portfolio management.
Shinhan Bank partners with MoMo E-Wallet in loans

Shinhan Bank Vietnam has officially partnered with MoMo E-Wallet (an affiliate of M_Service) to offer the “Introduce and receive consumer loans from Shinhan Bank on MoMo E-Wallet” service.

MoMo E-Wallet users simply send an application for a consumer loan to Shinhan Bank on their MoMo E-Wallet application and then wait for approval.

In particular, from now to December 31, consumer loans from Shinhan registered via MoMo E-Wallet will enjoy a 1 per cent discount on the annual interest rate.

The service simplifies the entire process from loan application, review and approval to disbursement, helping to significantly save time and energy. It is only offered to MoMo customers who have linked their MoMo E-Wallet to an account opened at one of 15 banks with which MoMo has an association.

“MoMo and Shinhan have jointly launched many services and utilities to customers,” said Mr. Shin Dong Min, CEO of Shinhan Bank in Vietnam. “A highlight service is money sent from South Korea being received via MoMo E-Wallet in Vietnam. And now we jointly offer consumer loan applications and disbursement through MoMo E-Wallet. We hope this will provide greater access to Shinhan’s consumer loans among customers in cities and provinces and give them more financial assistance.”

“This service is the result of our joint efforts to connect MoMo’s systems with Shinhan Bank, for the purpose of bringing customers the best experience,” said Mr. Nguyen Ba Diep, Vice Chairman of MoMo. “Information is promptly updated and help save time. MoMo and Shinhan Bank will continue the partnership to pioneer the introduction of new utility services and increase convenience.”

In Vietnam, MoMo is the first and only electronic wallet to partner with Shinhan Bank in loan application and disbursement services.

This is also the first time Vietnamese users have had the chance to experience a comprehensive financial solution on a mobile device.

Previously, in December 2017, Shinhan Bank was the first foreign bank to link directly with MoMo.

In April 2018, the two launched the “Send money from Korea and receive money at MoMo E-Wallet” service in Vietnam, which has received positive feedback from users and the market.
CMC Corporation signs strategic agreement with Danish partner

The CMC Corporation signed a strategic cooperation agreement with Denmark’s Approxima on October 20, within the framework of the Vietnam-Denmark Business Forum at the headquarters of the Confederation of Danish Industry (DI) and witnessed by Prime Minister Nguyen Xuan Phuc and Danish Prime Minister Lars Løkke Rasmussen.

“The reason we chose Ciber-CMC to deploy SAP solutions in the Nordic market as well as throughout Europe is because we want to increase the power of Approxima to meet the ever-increasing demand for SAP solutions,” Mr. Lars Damgaard, Partner and Director of Approxima, told the signing ceremony. “Ciber-CMC has more than ten years of experience in providing SAP solutions to the international market. With abundant human resources and a direction of delivering SAP solutions on the cloud computing platform of Ciber-CMC, we fully believe in the success of the strategic partnership between CMC and Approxima.”

“The CMC Corporation has a strategic goal of reaching out to the global market with the best IT and telecommunications products that meet world standards,” said Mr. Nguyen Trung Chinh, Chairman and CEO of CMC Corporation. “In fact, we are present in 21 countries, including Japan, South Korea, Singapore, Australia, and New Zealand, and we are expanding to international markets like the US and Europe. Through this cooperation with Approxima, we are confident that CMC will make a strong move in the European market, including Denmark.”
With 25 years of development, CMC Corporation has been providing ICT products and services for major partners from multinational corporations in 21 countries and consulted and implemented SAP Hana ERP system for Honda, AEON, and IBS and provided telecommunications services for NTT Communications, Samsung, and AT&T.

Ciber-CMC (a member company of CMC Corporation) is currently the leading consultant in implementing SAP’s enterprise resource planning (ERP) solution and Microsoft Dynamics’ CRM customer relationship management consulting solution. With more than 150 leading SAP & Microsoft Dynamics CRM consultants, Ciber-CMC is the most trustworthy provider in Vietnam, with a more than 30 per cent market share of SAP, and has been honored as “SAP’s Best Service Partner” in 2015, and “Top Performance Partner” of SAP in 2016.

Approxima is a leading SAP consultant in Denmark with many years of experience in consulting and deploying SAP solutions for medium and large organizations. Under the strategic cooperation agreement, Approxima will be responsible for expanding CMC’s business in European markets such as Scandinavia, Germany and Russia, which are areas where Ciber-CMC is aiming for the No.1 position in the provision of SAP solutions.

It is expected to tap into the digital convergence market for businesses with a market size of hundreds of millions of dollars, aiming to reach 100 million euros ($115 million) from the European market in 2023.

Approxima will also share its methods and experience to promote Ciber-CMC’s growth, supporting Ciber-CMC to meet international capacity requirements in service delivery. This also matches CMC’s “Go Global” strategy with the goal of exporting software and ICT services and products to the global market.
Tan A Dai Thanh Group kicks-off restructuring strategy

The Tan A Dai Thanh Group and its partner, KPMG, held a launch ceremony for its restructuring strategy on October 19 in Hanoi.

The ceremony saw the attendance of Ms. Nguyen Thi Mai Phuong, President of the Tan A Dai Thanh Group in Vietnam’s north, Mr. Nguyen Minh Ngoc, President of the Group in the south, Mr. Nguyen Duy Chinh, General Director of the Group in the north, representatives of founding shareholders and members of the Board of Directors in the two regions, and Mr. Tran Dinh Vinh, Deputy General Director and Project Director, and Mr. Joubert Johann, Deputy Director, from KPMG.

Tan A Dai Thanh choosing KPMG as its partner to implement the restructuring project is expected to enhance the professionalism of the business and prepare resources to reach the international market. At the same time, the restructuring is a suitable orientation to develop the prestigious brand of Tan A Dai Thanh. All employees will have a professional working environment to develop their career.

The Board of Directors has defined unity and solidarity from the top in its long-term strategy. The leaders expressed their determination to devote all resources towards the goal of Tan A Dai Thanh maintaining its leading position in Vietnam and reaching out to the region.

At the ceremony, the two sides presented the restructuring plan and introduced the structure of personnel involved in the project. The acceptance of this project reflected the appreciation of Tan A Dai Thanh for the capacity of KPMG. With many years of experience in implementing large-scale consultancy projects, KPMG is expected to meet the strict requirements of Tan A Dai Thanh in terms of quality, process and progress.

Established for over 25 years, Tan A Dai Thanh is a privately-owned integrated water supply and supply corporation in Vietnam. Its orientation is to develop into a strong international economic group, continue to develop in the direction of sustainability, and receive opportunities for cooperation through strategic partners.

In the context of globalization, Vietnam is deeply integrating into the world economy, requiring enterprises to professionalize, diversify, and synchronize products and services so as to affirm their business position, operate effectively, and participate in financial markets to have the opportunity to cooperate with strategic partners to improve business performance and competitiveness in the market.

Aware of the challenges and opportunities ahead, Tan A Dai Thanh has built a long-term strategic vision and mission, restructuring in order to optimize all resources, adopt efficient operational systems, and adapt to rapid changes.
Cargill opens 12th feed mill in Vietnam

Cargill opened a new $28 million feed mill on October 20 in southern Binh Duong province to better serve livestock farmers in the south.

The mill is Cargill’s 12th animal nutrition facility in Vietnam and its largest and most technologically advanced. Binh Duong provided a strategic location for Cargill to open the feed mill, as it tries to modernize its agriculture industry and move towards sustainable farming and support of agriculture infrastructure development.

“Our customers expect us to keep innovating and adding value to their products and services,” said Ms. Philippa Purser, Group Director of Cargill Feed & Nutrition. “This new feed mill enables us to better serve our customers with advanced technology and safe, high-quality animal feed. It gives us a platform for co-prosperity of both Cargill and the livestock industry as we work with the government, local communities and partners to help build a sustainable feed industry with a long-term future in Vietnam.” 

The opening ceremony was attended by 400 guests, including local government officials, rural communities, customers, partners and employees. “Cargill feed has been recognized and trusted by animal farmers and producers for its high quality and safety,” said Mr. Nguyen Xuan Duong, General Director of the Department of Livestock Production at the Ministry of Agriculture and Rural Development (MARD). “The opening of Cargill’s 12th animal protein plant will help it grow, along with Vietnam’s feed industry. I would like to recognize Cargill and its valuable contribution to the development of Vietnam’s livestock production sector in past years.”

The 48,000 sq m feed mill produces a wide portfolio of poultry and swine feed and has an annual capacity of 240,000 MT. A large portion of the plant’s operations are automated, allowing for increased operational efficiency and an enhanced customer experience.

Animal protein consumption has been increasing in Vietnam and the trend is expected to continue in line with the country’s rapid economic growth and regional trends.

After recovery from the recent market turbulence caused by large pork oversupply during the last two years, Vietnam’s national feed market is expected to grow about 3 per cent annually and it remains the largest commercial feed market in ASEAN. Meat, dairy and fish consumption is already driving higher protein intake in Southeast Asian countries, particularly Vietnam, along with Myanmar and Indonesia, according to research from The Economist Intelligence Unit (EIU).

It also reported that food safety concerns are accelerating the shift towards healthier animal protein in countries like Vietnam. “Our uncompromising approach to feed safety, ingredient quality and product integrity gives us the confidence to expand our investment to provide more healthy feed to serve the local farming industry and local consumers,” said Ms. Purser.

During Vietstock 2018, the best and biggest livestock trade show in Vietnam and organized from October 17 to 19 in Ho Chi Minh City, Cargill received the Best Swine Feed Product award from MARD. This is recognition of Cargill’s efforts in providing high quality, safe and efficient products to local animal protein producers to help them increase productivity and profitability. Cargill takes workplace safety very seriously and is pleased to report that the construction of the feed mill, which began in January 2017, took place without any major workplace accidents. This equates to more than 1.2 million safe working hours without any lost time.

Vietnam’s organic sugar finds its way to Europe

TTC Attapeu Cane Sugar Co. Ltd, a Vietnamese-invested firm based in Attapeu province of Laos, has entered strategic cooperation with British firm ED&F Man Sugar Ltd to sell organic sugar to Europe.

The agreement was signed in Ho Chi Minh City on October 26.

Under the deal, TTC Attapeu, a subsidiary of Thanh Thanh Cong – Bien Hoa JSC, and its partner will focus on the supply and purchase of two products, Organic Golden Cane Sugar and Golden Cane Sugar, in five years.

Organic Golden Cane Sugar is a product manufactured at the TTC Attapeu factory in the 2018-2019 crop and has met organic standards for all steps from cultivation to final processing.

Joaquin Munoz, an executive at ED&F Man Sugar, said this product has been granted with an organic certification under the US Department of Agriculture and the EU’s standards. 

He added that through the partnership with his firm, the products of TTC Attapeu have qualified for export to not only Europe but also North America and other demanding markets in the world.

Jetstar Pacific increase flights in Da Nang-Taipei route

Jetstar Pacific will increase flights between the central city of Da Nang and Taipei, Taiwan (China) to five round trips per week to meet rising travelling demand, announced the budget carrier on October 26.

The new schedule will start from October 31 and the round trips will be operated on Tuesday, Wednesday, Thursday, Friday and Sunday. Each leg will take two hours and 35 minutes.

A representative of the airline said tickets of the additional flights are on sale, starting from only 280,000 VND (about 12 USD) per leg. The prices exclude tax and fee. Passengers can purchase tickets at the website www.jetstar.com, the hotline 19001550 and ticket agents nationwide. 

Jetstar Pacific is the first low-cost carrier to launch Da Nang-Taipei route in December 2016, with three flights a week. To date, the airline has carried nearly 100,000 passengers between the two destinations. 

The flight increase is expected to bolster tourism development and create favourable conditions for investors to travel to Vietnam’s central region. 

In addition to the Da Nang-Taipei route, Jetstar Pacific and Jetstar Group operate international routes connecting the city with Hong Kong (China), Osaka (Japan) and Singapore.

Jetstar Pacific, whose two major shareholders are Vietnam Airlines and Australia-based Qantas Group, is the first budget airline in Vietnam. It operates flights between 16 destinations in Vietnam and 180 others in 18 countries and territories around the world.

Statistics of the Tourism Bureau of Taiwan (China) show that more than 610,000 Taiwanese tourists travelled to Vietnam in 2017. Meanwhile, there were over 380,000 Vietnamese visitors coming Taiwan in the period, a surge of 94.94 percent from a year earlier. 

Moreover, the number of visitors joining the exchange programme between Vietnam and Taiwan is projected to reach 1.5 million in 2018.

In the first half of this year, Da Nang welcomed more than 1.6 million foreign holidaymakers, up 47.1 percent year-on-year.

VITAS works with WWF to green Vietnam’s apparel sector

The World Wildlife Fund (WWF) and the Vietnam Textile and Apparel Association (VITAS) launched a project on October 26 to green Vietnam’s textile-apparel sector through improving water management and energy sustainability.

The two sides will cooperate with multiple players in the sector to promote better river basin governance and contribute to water quality improvement and sustainable energy use.

The project will be implemented from 2018 to 2020 with a vision to transform the textile-apparel sector in Vietnam through engaging the industry and influencing environmental governance in order to bring social, economic, and conservation benefits to the country.

VITAS Chairman Vu Duc Giang said the main focus of the project is to improve water and energy efficiency within the sector, thus reducing its impact on the environment. The project will also work with textile-apparel manufacturers to encourage them to be more active river stewards, practice sustainable energy planning and discuss collective actions to achieve sustainable investment and development in the industry. 

One important target of the project is influencing Vietnamese textile investors to implement more sustainable practices, he added.

Marc Goichot from WWF-Greater Mekong said: “For WWF, greening the textile sector in Vietnam is also a means to achieve our wider goal of addressing river governance and energy sustainability, which are top global environmental concerns.”

He added that in the long run, the WWF wants to see factories, industrial parks and other factors come together to take more proactive collective actions to address risks and impact beyond their factory fences and more responsibly manage shared resource uses across-sectors.

Key stakeholders in the project include international brands with suppliers in Vietnam, factories around the country, in particular in the Mekong and Dong Nai river deltas in areas around Ho Chi Minh City, financial institutions, development partners and other relevant initiatives. Other partners include the China National Textile and Apparel Council and the Lancang-Mekong Cooperation.-