Enterprise Rent-A-Car to enter Vietnamese market

The US’s biggest car rental company, Enterprise Rent-A-Car, will officially offer its services in Viet Nam starting on November 29.

The company’s website enterprise.vn is now opening for rental services, with vehicles of five to 29 seats. The prices range from VND800,000 (US$34.19) a day for a Suzuki Vitara to VND2.6 million per day for a Samco bus.

Enterprise’s car rental services in Viet Nam (and Asia) are licensed to MP Executives – a subsidiary of MP Group – which has more than 23 years of experience in the logistics industry in Viet Nam. Viet Nam is the first country in Asia to use Enterprise’s car rental service.

In addition to providing services in the US, Enterprise is available in 84 other countries.

Vingroup opens three technology firms

Vingroup’s goal in the next 10 years is to become a world-class technology-industry-service corporation in which technology plays a major role. — Photo vietnamfinance.vn

 Property developer Vingroup on Tuesday established four subsidiaries with total capital of VND390 billion (US$16.67 million), including three technology units and one tourism firm.

VINCSS Internet Security Services Limited Liability Company has charter capital of VND20 billion, 100 per cent owned by Vingroup. Its main business is research and development of network security.

VinConnect Technology Solutions and Services Company Limited has charter capital of VND300 billion, 100 per cent owned by Vingroup. The main business line is information technology service activities.

HMS Software Manufacturing and Trading Company Limited with charter capital of VND50 billion, 100 per cent owned by Vingroup. The main business is producing software.

Phuc An Investment and Tourism Development Joint Stock Company has charter capital of VND20 billion, of which Vingroup owns an 85 per cent stake. Its main business is real estate and accommodation services.

Of the four companies above, HMS is based in District 1, HCM City. The other three firms are based in Vinhomes Riverside, which is also the headquarters of Vingroup.

According to Vingroup, its goal in the next 10 years is to become a world-class technology-industry-service corporation in which technology plays a major role.

iSpace signs deal with Kaspersky Lab for cyber security training     

HCM City-based iSpace College of Information Technology has signed an agreement with Kaspersky Lab Viet Nam for cyber security training.

The Russian network security giant will set up a lab at the college for research, training and developing advanced information and cyber security subjects for IT students, especially cyber security students.

It will also send experts to instruct and provide training in cyber security to iSpace’s teachers and students.

The two sides will collaborate to study effective solutions for network defence, prevention of malicious codes and protection of companies and other organisations’ databases in Viet Nam.

Ngo Tan Vu Khanh, development director of Kaspersky Lab Vietnam, said the company would provide a variety of tools to help graduates apply in their cyber security jobs.

Nguyen Hoang Anh, rector of iSpace, said getting more tools and practical knowledge from a company such as Kaspersky Lab would improve students’ skills and help them get more job opportunities when they graduate.

"The tie-up with Kaspersky is one of the important activities in the school’s ’cyber knights’ training programme to help students learn how to review and overcome vulnerabilities and potential security risks in IT infrastructure of organisations and use security solutions to detect, analyse and advise on cyber problems," he said. 

AI can help small businesses expand, improve productivity

The use of Artificial intelligence (AI) by small- and medium-sized enterprises could help them expand their business, the CEO of the Social Media Command Centre said at a seminar on Thursday in HCM City.

Speaking at the Saigon Innovation Hub, Le Cong Thanh said SMEs in Viet Nam should first identify their weaknesses and strengths.

"They still lack sufficient human resources, databases and digital infrastructure, but, on the bright side, know their business processes well," he said.

Professor Ho Tu Bao, director of the John von Neumann Institute, said AI had developed dramatically in the last five years after many decades of research.

Digital transformation is an essential step for enterprises to develop in the Industry 4.0 era, and that will include the use of AI.

SMEs in Viet Nam must build digital infrastructure and employ at least one or two people who have knowledge on AI, Bao said.

The institute and several national universities in HCM City had launched an AI club with 40 to 60 teachers who would help enterprises access new technologies, he said.

Huynh Kim Tuoc, CEO of the Sai Gon Innovation Hub, said many enterprises were still hesitating to apply AI due to price.

However, Tuoc said enterprises could buy AI technologies at an affordable VND1 million to VND2 million per month.

The Sai Gon Innovation Hub organised the seminar with Khoa Hoc & Phat Trien (Science and Development) newspaper. 

FLC Group to invest in 6 projects in Quang Ngai     

The central province of Quang Ngai has approved in principle FLC Group’s investment in six projects at the Van Tuong Urban Area in Binh Son District with total capital of VND13 trillion (US$557.2 million).

These include the Van Tuong 1 urban area with total area of 497,902sq.m; FLC Quang Ngai ecological urban area with 353,123sq.m; Van Tuong 8 urban area with 458,846sq.m; FLC Quang Ngai Golf Links with 810,442sq.m; Van Tuong 4 urban area with 404,549sq.m and Van Tuong 7 urban area with 344,315sq.m.

The province asked FLC Group to build an environmental impact assessment report for the FLC Quang Ngai Golf Links project to submit to the Prime Minister for approval.

The group was also required to quickly finish the environmental impact assessment reports for the remaining five projects and submit them to the provincial leaders for approval.

The provincial People’s Committee would work out mechanisms and policies to support people who would be affected by the projects as well as implement land clearance and resettlement.

Quang Ngai Province also instructed relevant agencies to visit localities in which FLC’s projects will be implemented, such as FLC Quy Nhon in the central province of Binh Dinh, to assess the impact of the project on local residents. 

More actions needed to boost reforms: businesses     

Businesses expect to see quicker actions from State management agencies in the enforcement of the Government’s Resolutions No 19 and 35 to boost reforms and promote business development.

This need was highlighted at the launch event for the report on the implementation of the resolutions from the view of businesses, held by the Viet Nam Chamber of Commerce and Industry (VCCI) on Tuesday in Ha Noi.

"More than anyone, businesses have felt the results and efficiency of reforms over the past few years,” VCCI’s Chairman Vu Tien Loc said. “They understand best how changes in the business environment affect their operations. The satisfaction of enterprises is the most important measure for the success of reforms.”

The VCCI survey, which was conducted on some 10,000 private firms, found that the companies saw significant improvements in the business climate in recent years. However, the level of improvement remained uneven across different sectors and localities.

Loc said the space for reforms remained large, adding more efforts were needed for the State management agencies and local authorities to boost efficiency and benefit enterprises.

Loc said the report would serve as a reference for the evaluation of the Government’s Resolution 19 about improving the business environment and national competitiveness and Resolution 35 about business development for the compilation of new resolutions.

According to Dau Anh Tuan, Head of VCCI’s Legal Department, surveyed businesses felt that starting a business and getting electricity were the two areas that saw the most improvements. However, trading across borders, protecting investors and resolving insolvency did not improve much.

The deregulation of business conditions, an important task in Resolution 19, was still far below the goal, although Ministry of Planning and Investment statistics showed that as of October, 15 decrees about deregulation of business prerequisites had been issued, Tuan said.

The application for sub-licences remained difficult, he said, citing the report’s finding that 42 per cent said that they met difficulties when applying for these licences.

It was necessary to have an independent organisation to evaluate the progress of deregulation and the level of transparency in applying business prerequisites, Tuan said.

The VCCI survey also found the procedures for registering a property lacked co-ordination between relevant agencies, such as land management agencies, tax agencies and notary offices. In some provinces, databases of these agencies had not been linked to each other.

Tuan added that reforms in import inspections had also progressed slowly. As of September, 68 procedures were conducted via the national single window, out of 284 targeted by 2020. To date, only one was conducted completely electronically while others still required hard copies.

Tuan said firms complained that they were inspected more than once per year, citing statistics of the 2017 provincial competitive index report that said nearly 40 per cent of firms were inspected at least two times per year and 13 per cent saw overlaps in the inspections of different groups.

“Many reforms are introduced but it is a long road before they truly benefit businesses,” Tuan said.

Nguyen Dinh Cung, Director of the Central Institute for Economic Management, said an independent organisation to review the issuance of legal documents should be set up, which would play important role in improving the business climate. 

Vietnamese goods increase presence in Singapore     

Vu Thi Thanh Hanh, general manager of Learth Viet Nam Co Ltd, said sales of her company’s VietJoy leaf tea products were very good three months after they entered the Singaporean market.

There were seven kinds of leaf tea products, moringa leaf tea, guava leaf tea, mulberry leaf tea, soursop leaf tea, roselle flower tea, noni fruit tea, and graviola leaf tea, which are made of all-natural ingredients with no preservatives, colourants or additives added, she said.

“After three months, we realised that Singaporean customers are very fond of our soursop leaf tea, moringa leaf tea, guava leaf tea and mulberry leaf tea.”

“We had sold 30,000 boxes of tea.”

Nguyen Anh Duc, deputy general director of the Saigon Co.op, the leading Vietnamese retailer, said his co-operative exported 200 containers of goods annually to Singapore, including basa fish fillet, shrimp, sweet potato, green-skin pomelo, coconut and others to sell at its Singaporean partner NTUC FairPrice’s stores.

“The export has been increasing by 20 per cent a year and is expected to top US$2 million this year.”

Vietnamese goods ranked fourth among Asia-Pacific products sold by NTUC FairPrice, which accounted for 56-60 per cent of supermarket sales in Singapore, he said.

Seah Kian Peng, CEO of NTUC FairPrice, said: “Vietnamese products have grown in popularity and become a staple in many Singaporean households. Whether it is Vietnamese rice, which now comprises more than one-fifth of all the rice sold here at FairPrice, fresh produce, frozen seafood or even laundry aids and detergent, we have seen an increased acceptance and demand for Vietnamese products.”

FairPrice now offers about 650 Vietnamese products in over 40 product categories, a 17 per cent increase from 2015, he said.

Steven Ang, head of purchase at Saigon Co-op FairPrice Limited Liability Company, a joint venture between Saigon Co-op and NTUC FairPrice, said: “The quality of Vietnamese products overall is very good. For example, the chiku [sapodilla] that we are selling now, the Vietnamese one is preferred in comparison to the one from Malaysia, and the price is also very competitive.”

Viet Nam has a lot of healthy products such as organic rice and pho, he said.

“We continue to look for more suppliers ... to bring new products from Viet Nam to Singapore.”

Duc from the Saigon Co.op said: “Singaporean consumers are particularly fond of Vietnamese fresh produce and processed foods such as coffee and cashew nuts. Singaporeans are changing from potato to sweet potato, so Saigon Co.op has promoted the export of sweet potatoes to Singapore via the FairPrice system.”

Singaporean consumers are also fond of Vietnamese mango and dragon fruit, he said.

"The prices of Vietnamese goods are very competitive compared to goods imported from countries outside the ASEAN region sold in Singapore because the ASEAN countries have free trade agreements together.

“But we have faced intense competition from companies in the region, which requires Vietnamese enterprises to make more efforts to improve product quality and reduce costs to improve competitiveness.”

In the past, Vietnamese products were far behind the goods from other countries in the region, but now the gap is narrowing, he said.

However, Vietnamese manufacturers still have a lot of work to do to establish Vietnamese brands in the world market, and invest more in product packaging and models, he said.

“Foreign buyers require standardisation, uniformity in quality, weight and specifications,” he said.

Multilateral and bilateral free trade agreements are creating an excellent opportunity for Vietnamese goods to penetrate the world market, he said.

According to the Ministry of Industry and Trade, Singapore is among Viet Nam’s major trade partners, with bilateral trade going up from US$7.1 billion in 2016 to $8.3 billion last year. 

The southern province of Binh Duong has already attracted more than US$1.6 billion in foreign direct investment this year, 17.6 per cent more than the full-year target, according to its People’s Committee.

Licences have been issued to 173 new projects with a total capital of $843 million, 102 existing projects increased their capital by $537 million, while foreign investors made capital contribution of $312 million to 121 joint-venture projects.

Tran Thanh Liem, chairman of the People’s Committee, told a recent meeting that the sharp rise in FDI was thanks to improving the business environment and supporting start-ups.

Foreign investors have poured a cumulative $31.75 billion in 3,472 projects in the province.

Most of the investment is from the US, Japan, Singapore, Taiwan, and South Korea.

The province regularly holds meetings with business groups, enterprises and investors to resolve their problems. It has also made efforts to simplify administrative procedures, inspection procedures and unnecessary regulations and reduced or abolished certain fees.

State-owned enterprises have been ordered to speed up their equitisation and divestment. Around 35,600 enterprises have been established in the province with a total register capital of more than VND286 trillion ($12.3 billion).

In the first ten months of this year, more than VND49 trillion ($2.1 billion) was invested, a year-on-year increase of 19.7 per cent.

Zone Start-ups Vietnam, a start-up accelerator, has launched the Next Big Idea contest to help start-ups break into North America through Toronto city in Canada, one of the fastest growing technology centres in the world.

Zone Start-ups Vietnam is a programme launched by Toronto-based Ryerson Futures Inc. in collaboration with partners in Viet Nam including UniBrands, VinaCapital, Trung Thuy Group, and TalentNet.

Just like in Canada and India, Zone Start-ups will work closely with Vietnamese partners to provide start-ups with market validation and customer acquisition assistance.

It will collaborate with existing incubators and co-working spaces in the local market and work with promising start-ups that require support, mentoring, access to customers and, in select cases, funding.

According to Mohamed Lachemi, president of Ryerson University in Canada, the contest, first started in India in 2013, has helped more than 30 companies expand their international networks by connecting with potential customers in North America.

By bringing the Next Big Idea contest to Viet Nam, the organisers expect to give Vietnamese start-ups the best opportunities to establish connections with partners in the US, Canada and India.

Applications for the contest will be accepted until January 31 and the winner be will announced next March. 

Large supermarkets in Ha Noi will organise booths to introduce French food and agricultural products to Vietnamese consumers from now until December 3 to mark the opening a week of French food and agricultural products in Viet Nam.

This is the second consecutive year the event has been held in more than 20 supermarket chains and shops in Viet Nam, including Big C, Auchan, Annam Gourmet Market, Aeon and Giant.

Representatives of the French Embassy in Viet Nam said Vietnamese consumers would have the opportunity to enjoy a variety of French products such as Promess milk, Ingredie milk, Blue Whale apple, Harmonie apple, Jean Floc’h pate, Royal pate, Saint Michel biscuits and La Dory biscuits.

In addition to French food, the French week will also introduce French wines and e-commerce models with the participation of foodster.vn, auchan.vn and annam-gourmet.com.

French week includes many events celebrating French culture and agricultural products. 

Small- and medium-sized enterprises (SMEs) must enhance their competitiveness to participate in Industry 4.0 and inclusive global value chains in the context of rapid integration and technology advancements, experts have said.

Vu Viet Ngoan, Chief of the Economic Advisory Committee to the Prime Minister, said at the conference, held by the US – ASEAN Business Council on Wednesday in Hai Phong, that there is ample space for the development and integration of SMEs.

Ngoan cited statistics showing SMEs in Viet Nam contributed more than 30 per cent of the gross domestic product (GDP) and provided jobs for more than 50 per cent of the labour force.

These figures were still modest in comparison with developed economies like Japan, Singapore, South Korea and the European Union, where the private sector contributed 50 per cent of the GDP and created jobs for 70 per cent of the labour force.

“In the context of rapidly changing global value chains and the development of the digital economy, SMEs must update their thinking and work to enhance their competitiveness to keep pace with global development,” Ngoan said.

Ngoan highlighted three things SMEs must focus on: being confident, being transparent and developing long-term co-ordination with partners.

“Together with the Government’s efforts in improving the business environment and policies to promote SMEs, I believe the development of SMEs in Viet Nam will boom,” he said. “SMEs are the backbone of the economy and the driver of growth.”

According to Bidhan Roy from the US’s Sisco System, digitalisation would help SMEs in ASEAN participate in cross border trade, expand business and reduce costs.

Michael Michalak, the US – ASEAN Business Council’s Senior Vice President and Regional Managing Director, said that in the near future, economic development and technological development would merge into one.

He said it is time for SMEs to start thinking about how to adapt to Industry 4.0. SMEs were encouraged to take advantage of technology advancements and integration opportunities, he said.

SMEs account for 98 per cent of the total number of firms in Viet Nam. 

Developing concentrated aquaculture areas, strengthening linkages among stakeholders, optimising costs, increasing the use of technology, and building brands are among the measures that would add value to the aquaculture sector, according to the Directorate of Fisheries.

Speaking at a roundtable in HCM City on Thursday, Tran Dinh Luan, deputy general director of the directorate, said aquaculture plays a very important role in the country’s agricultural production and exports.

Productivity and output have increased significantly in recent years, with output exceeding catches from the sea, he said.

Vu Duyen Hai of the directorate said in the first 10 months of the year fisheries output reached six million tonnes, a year-on-year increase of 6 per cent, with aquaculture accounting for well over half.

“The increase in the use of technology has obviously helped increase aquaculture productivity and output.”

Demand for aquaculture products is expected to continue increasing in the coming years, especially in developing countries, he said.

The free trade agreements the country has signed would throw up opportunities for Vietnamese firms to increase production and export, he said.

But the sector faces challenges, he and other speakers agreed.

Viet Nam is among the world’s largest aquaculture producers and exporters, but its costs are high compared to other countries in the region, they said.

Other challenges included a lack of infrastructure, small scale of farming, intense competition in the global market, technical barriers put up by importing countries, and lack of brands, they added.

Truong Thi Le Khanh, chairwoman of Vinh Hoan Corporation, said tra fish exports had increased significantly in recent years, but there are challenges such as a lack of broodstock, labour shortage, rising costs and climate change.

To overcome challenges, she called on enterprises to adopt advanced hatching technologies, automate processing, diversify products and strengthen linkages among stakeholders to cut costs and improve quality.

She also said agencies should provide businesses with timely information about the sector and the market, and run campaigns in the international media to promote the image of Vietnamese tra fish.

Cuong said the aquaculture sector should set up farming clusters, restructure production to develop a closed production chain and apply modern technologies.

Truong Dinh Hoe, general secretary of the Viet Nam Association of Seafood Exporters and Producers (VASEP), said: “The Government should zone areas for aquaculture and processing plants and identify what species to breed with a focus on encouraging closed production models, linkages in production chains and adoption of modern technologies to improve productivity and reduce costs.”

The sector should acquire aquaculture certificates demanded by large import markets, further clamp down on the use of chemicals and antibiotics, and develop brands, he said.

Le Van Quang, chairman and general director of Minh Phu Seafood Corp, the country’s largest shrimp exporter, said: “Large markets such as the US, Japan and the EU do not tolerate antibiotic residues in shrimp.”

The Ministry of Agriculture and Rural Development and the Directorate of Fisheries should intensify checks for antibiotics, he said.

Import markets have demand for various sizes of shrimps whereas Vietnamese farmers usually harvest their shrimp when they reach a size of 30-50 to a kilogramme, leading to a surfeit, while there is a shortage of other sizes, he said.

This should be addressed, he added.

The fisheries industry earned $7.4 billion from exports in the first 10 months of the year and would surely meet the full-year target of $9 billion, Hoe said.

Shrimp exports are expected to be worth $3.8 billion and tra fish, $2.2 billion, he said.

“This year, we have made good use of free trade agreements to boost exports. In addition, we have better managed product traceability and the use of antibiotics in farming, meeting the requirements set by importing countries.”

Organised by the directorate, VASEP and GIZ, the event was held to discuss the current situation in the aquaculture sector and measures to improve its efficiency and increase investment in it. 

Growth opportunities abound in the internet of things segment but problems like outdated technologies, poor management skills and low technical capacity are preventing Vietnamese firms from entering global value chains, a workshop heard in HCM City on Thursday.

To Thi Thu Huong, deputy director of the Ministry of Information and Communications’ Information and Technology Department, said IT is a fast-growing sector with large exports which makes a significant contribution to the country’s GDP.

At the end of last year, the country had more than 28,420 enterprises in the hardware, software, digital content, and IT services segments, 16 per cent more than a year earlier, and their revenues were up more than 35 per cent to US$91.6 billion, she said.

She said the Government’s priority is to help enterprises enhance their capacity and competitiveness to integrate into global value chains by offering incentives such as land use fee and tax concessions and other measures.

But many Vietnamese companies still face limitations such as lack of experience and knowledge in producing high-quality IT products and selling them in the global market and lack of skilled workers, she said.

“That is why foreign enterprises have to bring their supporting industries with them when they come to Viet Nam.”

Nguyen Anh Tuan, her colleague at the department, said the Fourth Industrial Revolution would stimulate the adoption of new technologies, especially internet of things (IOT) equipment, which would bring opportunities to Vietnamese companies.

“Local enterprises who understand the local market will have the upper hand over foreign enterprises.

“Another advantage is the new flow of investment as the US–China trade war shifts some of the investment from China to Viet Nam.”

But IT enterprises face challenges like competition from other regional rivals, especially those in India and Myanmar, who can also offer low-cost labour, and quality products, he said.

Given the current opportunities and challenges, Tuan suggested ways for Vietnamese IT enterprises to develop. Firstly, telecom companies and start-ups should focus on producing IoT products and telecommunications network equipment.

For traditional electronics companies, the way forward is to offer outsourcing services and produce electronic appliances.

He said Vietnamese firms can further integrate into global value chains by becoming manufacturers and suppliers for giant companies.

A number of Vietnamese companies have become first- and second-tier suppliers of large foreign companies in the country like Samsung, LG and Intel.

The number of Samsung’s tier-1 Vietnamese vendors has increased dramatically, from four in 2014 to 29 now. It organised a consultation programme for 130 local companies with the aim that around 50 would become tier-1 vendors by 2020.

Nguyen Anh Tuan of Samsung Viet Nam said his company is willing to partner with local firms if they can produce quality products at lower prices than those offered by suppliers from outside the country.

“What is important is the determination and commitments of local firms in terms of how long and how sustainable their investment is.”

Though Vietnamese enterprises lack the technical skills to produce sophisticated parts for Samsung smartphones, they show much potential in the home electronics segment, he said.

Samsung is building an electronics and home appliances production hub in HCM City, its first smart manufacturing factory of this kind in the world and the biggest in Southeast Asia, he added.

The workshop on “Vietnamese IT products and services in global value chains: opportunities and challenges”, is an annual event organised by Ministry of Information and Communications. 

Samsung Viet Nam strives to support Vietnamese enterprises to improve their competitiveness and join the global spare part supply chain, said Shim Won Hwan, general director of Samsung Viet Nam.

Speaking during a visit to evaluate consulting results for 3 enterprises operating in the field of supporting industries in the north on Thursday, Hwan said Samsung’s investment into Viet Nam is not just a short-term vision or for immediate benefit, but with long-term goals.

These companies are M1 Communication One Member Limited Liability Company under Viettel Group in Ha Noi, Viet Applied Investment For Packing Production Company Limited (VIPACO) in Hung Yen Province, and DM Vina Company Limited in Vinh Phuc Province.

“Samsung Viet Nam is part of the Vietnamese economy and we want to contribute to the long-term development of Viet Nam,” he added.

This vendor visit was part of a 12-week Samsung Advisory Programme, aiming to strengthen Vietnamese enterprises’ capacity to participate in Samsung’s supply chain.

Accordingly, South Korean experts surveyed and evaluated Vietnamese enterprises for 2 weeks, then will directly consult and work with the businesses for 10 weeks. After 3 months, the enterprises have recorded positive results in improving production processes and completing standards in supplying products and components for Samsung factories in Viet Nam.

He pointed out that improvements take small steps to deliver big benefits.

“The innovative approach and process must be completed to get the perfect product for the partner,” he said.

The small improvements have brought remarkable results to the companies in question.

For example, during the implementation of the assembly of electronic components on circuit boards, after three months of consultation, the productivity of M1 increased by 32 per cent and the defect rate decreased by 56 per cent. This achievement was reached thanks to a reduction of up to 80 per cent in travel distance in the manufacturing chain (from 250m to 50m), thereby optimising manpower, eliminating backward movement and solving congestion points, helping to stabilise product quality.

Luu Quang Truong, M1’s director said Samsung’s consultancy changed their staff members’ mindsets.

“We determined to change and regularly improve our production toward Samsung’s consultancy to be eligible to join Samsung’s supply chain,” Truong added.

Nguyen Xuan Thanh, director of VIPACO said the consultancy has helped them increase productivity by 58 per cent and reduce the defect rate by 57 per cent. These achievements have come thanks to the support of South Korean experts as well as VIPACO’s efforts to improve performance loss and operating time of the machinery.

Shim Won Hwan, general director of Samsung Viet Nam, visited M1 Communication One Member Limited Liability Company under Viettel Group in Ha Noi. — VNS Photo Vu Hoa

DM Vina Company Limited is a newly established firm operating in the field of repairing telephone screens. The Samsung Innovation Consultancy Programme has helped the company stabilise its production and quality system by applying an optimised production line layout; operating indicators to improve productivity; analysing problems and building a response plan for every single part; and conducting activities to improve the production environment.

Prior to implementing these consultancy programmes, Samsung had worked closely with the Ministry of Industry and Trade, Governmental agencies and related associations in searching, evaluating and selecting potential Vietnamese enterprises to take part in this programme.

This process has been conducted strictly, from receiving and studying profiles of Vietnamese enterprises to organising field trips to evaluate their activities in order to select potential and appropriate enterprises.

“We are constantly looking for potential Vietnamese enterprises to participate in our business consulting programmes with South Korean experts. This programme is considered to be a crucial step for Vietnamese enterprises to strengthen their capacity to compete and join in the global supply chain of Samsung. The programme was launched in 2015, and after each session, there is significant increase recorded in the productivity of the enterprises taking part. Productivity has increased by over 30 per cent on average. We will continue to promote this programme on a larger scale in Viet Nam.”

From April 2018, Samsung launched a programme to train 200 Vietnamese consultants in cooperation with the Ministry of Industry and Trade. This will be conducted for 2 years in both northern and southern regions.

After finishing the training course, in parallel with participating in consultancy with South Korean experts, 200 Vietnamese consultants will directly implement various programmes of improving production activities for Vietnamese enterprises, which helps the project multiply and works towards the common development of the supporting industry in Viet Nam.

Compared to 35 per cent in 2014, Samsung’s current localisation rate is 58 per cent. Correspondingly, the number of Vietnamese enterprises which are Samsung’s Tier 1 suppliers has increased greatly. From four enterprises in 2014, the number has increased to 35 enterprises at present, with the expectation of 50 enterprises by 2020. This target is gradually being realised via Samsung’s continuous efforts to comply with the Government of Viet Nam in the development of the supporting industry.

On November 15, Samsung also conducted an assessment of three enterprises in the South participating in the programme, including Minh Nguyen Industry Support Joint Stock Company, Hai Ha Machinery and Trading Company Limited and Sacom Wires and Cables Joint Stock Company. These are 6 enterprises among 38 Vietnamese enterprises that have received support and consultancy from South Korean experts from Samsung since 2015. 

Vinh Hoan JSC gains $309m from October exports     

Seafood processor Vinh Hoan Joint Stock Company has recorded US$309 million worth of export turnover in the past 10 months.

The figure represents a yearly increase of 26 per cent. In October, the company’s export value rose 22 per cent year on year to $39.3 million.

The US, China and Japan remain the top export markets for the company. Its exports to those markets respectively increased by 45 per cent, 102 per cent and 30 per cent, year on year.

Vinh Hoan JSC reported its third-quarter net revenue rose by a quarter to VND2.52 trillion ($112.2 million) and its third-quarter post-tax profit gained 260 per cent year on year to VND609 billion.

After the first three quarters, the company recorded VND1.03 trillion in post-tax profit, a yearly increase of 153 per cent and beating its full-year forecast of VND620 billion.

Vinh Hoan JSC also plans to pay a 20 per cent cash dividend for its 2018 performance on December 20. The company will finalise the list of beneficial shareholders on December 10.

The company is listing more than 92.4 million shares on the Ho Chi Minh Stock Exchange as VHC. The dividend payout may cost the company VND184 billion.

The firm shares gained 1.8 per cent to close Thursday at VND109,600 ($4.87) per share. 

City Auto gears up for share issuance     

Automobile distributor City Auto Joint Stock Company will finalise its list of shareholders to receive 21.6 million shares as it wants to increase charter capital.

The share issuance ratio is 1:1.2, meaning each shareholder is eligible to buy 120 new shares for every 100 shares they own.

The share issuance price is VND10,000 (US$0.44) per share and the company expects to raise VND216 billion ($9.6 million) from the deal to invest in new projects and boost working capital.

Its charter capital is expected to touch VND396 billion from the current VND180 billion.

The share issuance was approved by shareholders in June.

City Auto JSC is listing 18 million shares on the Ho Chi Minh Stock Exchange (HoSE) as CTF. Its shares jumped 5.5 per cent to close Thursday at VND24,800 per share.

In the third quarter, the company’s revenue fell 12 per cent year on year to VND777 billion but post-tax profit gained 25 times year on year to VND12.7 billion.

After nine months, City Auto recorded VND2.12 trillion in net revenue, down 18 per cent year on year. Its post-tax profit in nine months four-folded last year’s figure to VND20.5 billion, 70 per cent of the firm’s full-year forecast. 

Song Hong Garment to debut on HoSE in late November     

The Ho Chi Minh Stock Exchange (HoSE) has approved the listing of Song Hong Garment Joint Stock Company on the southern bourse.

Song Hong Garment JSC will debut on HoSE on November 28 by listing more than 47.6 million shares with the code MSH, the market said in a statement on Tuesday.

The company will start trading at the price of VND45,000 (US$2) per share, making its market capitalisation up to VND2.14 trillion ($95.25 million) on the debut day.

The company’s shares are able to increase or decline within a daily band of 20 per cent on the debut day, meaning its price may rise as high as VND54,000 or fall as far as VND36,000 by the end of the debut.

The company, headquartered in the northern province of Nam Dinh, produces garment products for both domestic and overseas markets and was founded in 1988.

As of October 1, the company had 511 shareholders including four institutional investors and 507 individuals.

From 2014 to 2017 the company’s profit kept increasing from VND142 billion to VND200.4 billion. In the first nine months of 2018, the company recorded nearly VND3 trillion in net revenue – a yearly increase of 21 per cent – and VND273 billion in net profit – a yearly growth of 100 per cent.

From 2015 to 2017, the company paid 45 per cent dividend in cash each year. The cash dividend payout rate is planned at 35-40 per cent for 2018 and 35 per cent from 2019.

Song Hong Garment JSC targets a 7 per cent year-on-year revenue rise for 2018, to land at VND3.5 trillion. Its profit gained 15 per cent to VND230 billion. 

Subaru opens showroom in Da Nang     

Motor Image Viet Nam – the exclusive authorised distributor of Subaru cars in Viet Nam – has officially launched the first Subaru 3S showroom in the central city of Da Nang.

It is also the first Subaru 3S showroom in central Viet Nam to offer a full range of services from sales to after-sales service and spare parts.

According to Motor Image Viet Nam, the opening of the showroom is a long-term commitment to providing top-notch sales and after-sales service for customers to enjoy the Subaru experience.

The showroom, which is located in downtown Da Nang, will offer a full range of Subarus and Subaru-certified after-sales services facilities.

The Subaru parts centre will provide genuine Subaru spare parts which have been designed, tested and manufactured according to Subaru Corporation’s detailed standards.

Da Nang’s Subaru dealer, which is owned by Kim Son company, will also introduce the Outback 2.5i-S EyeSight and All-New Subaru Forester 2.0i-S EyeSight, introduced to the public at the Viet Nam Motor Show 2018.

These models are the latest variants that are well equipped with advanced core technologies including a 2.0-litre boxer engine, brakes, symmetrical all-wheel drive and EyeSight Technology – an advanced driver assist technology that includes automatic pre-collision breaking, throttle management, adaptive cruise control, lead vehicle start alert, lane departure and lane sway warning.

Founded in Japan in 1955, Subaru has since grown to become one of the world’s leading carmakers. In 1972, Subaru became the first in the world to market an All-Wheel Drive (AWD) passenger car and pioneered the market in Japan for high-performance station wagons by combining a turbo-charged engine with an AWD system. Subaru has improved and refined its technology to create a Symmetrical AWD system that enables optimal driving pleasure and safety.

Subaru is well known by motoring organisations worldwide for its engineering, design, functionality, safety and reliability. The Subaru range of vehicles includes the BRZ, Forester, Impreza, Legacy, Levorg, Outback, WRX, WRX STI and XV. Collectively, they have been known to be ‘driver’s cars’ offering superb handling because of the core technologies built into every model.

In 2017, Subaru Corporation and Tan Chong Manufacturing and Assembly (Thailand) Company, a subsidiary of Tan Chong International Limited, entered into a joint-venture agreement for the local assembly of Subaru vehicles in Thailand to reinforce their existing business foundations in Southeast Asia. The vehicles produced in both Malaysia and Thailand will be distributed by Motor Image through its Subaru network.