Binh Duong introduces investment opportunities to investors

The dialogue between Binh Duong's authorities and investors on November 26 

Authorities of the southern province of Binh Duong on November 26 held a dialogue with leaders of domestic and foreign businesses, where they introduced the province’s investment opportunities in a wide range of fields.

Vice Chairman of the provincial People’s Committee Mai Hung Dung said Binh Duong is striving to become a “golden land” and stands ready to roll out red carpet for investors.

Binh Duong is now calling for investments in the spheres of hi-tech industry, supporting industry, information technology, electronics, mechanical manufacturing, precision industry, trade, services, infrastructure development, training and human resource development, he said.

With their strengths in terms of technology, finance, market share and governance capacity of investors as well as advantages of Binh Duong, both sides will reap practical benefits, Dung noted.

The official also affirmed that Binh Duong province will always stand side by side with investors and create the best conditions for their production and business activities.

At the dialogue, leaders of major foreign groups highly evaluated the position and investment environment of both Vietnam and Binh Duong province. 

They also mentioned Binh Duong’s investment incentives for foreign investors, tax incentives and preferential treatment for those investing in healthcare and solar energy or foreign capital ownership at enterprises.

Binh Duong is now home to 3,472 foreign direct investment (FDI) projects with combined registered capital of 31.75 billion USD, ranking third just behind the southern largest economic hub of Ho Chi Minh City and the capital city of Hanoi.

The dialogue was part of the 2018 Horasis Asia Meeting, Asia’s premier gathering of the region’s most senior leaders in business and administration, which kicked off in the province on the same day.

The annual meeting is described as an ideal platform to explore and advance regional cooperation, impact investing, and sustainable growth.

A range of activities will be held during the two-day event, with four plenary sessions and 36 dialogues. Plenary sessions include discussions on new trends in technology and the status of the regional and global economy, new business models, support for start-up businesses, and solutions for smart cities.

The event is hosted by the People’s Committee of Binh Duong in collaboration with the Horasis Global Visions Community, Becamex IDC Corporation, VSIP Group, All India Management Association and the Young Premier Leadership Organisation.

Workshop discusses ways to boost local-level startup ecosystems

A workshop discussing measures to boost innovative startup ecosystems at local level took place in the central province of Quang Nam on November 26.

As part of TechFest Vietnam 2018, the event was co-organised by the Ministry of Science and Technology (MoST) and the provincial People’s Committee.

According to participants, startup ecosystems must be developed in specific localities as each region has its own culture and development advantages. Small startup ecosystems will then form a national startup ecosystem. 

MoST Deputy Minister Tran Van Tung said localities should follow the Prime Minister’s Project 744 on supporting the national startup ecosystem by 2025 to build their own ecosystems in line with their conditions and competitive edges.

To develop local-level startup ecosystems, it needs the engagement of the entire political system, the connection of resources in support for startups, and the active participation in domestic and international startup networks, he said. 

In addition, localities should improve awareness and knowledge of officials in charge of supporting startups and build a contingent of good startup advisors. 

Tran Tri Dung, a specialist from the Vietnam Mentors Imitative (VMI), highlighted the important role of advisors in the development of innovative startups. They are experienced businesspeople who will inspire startups in their path of development with full of difficulties and challenges. 

According to the MoST, Vietnam now has about 3,000 innovative startups, double the figure in 2015, focusing on such fields as agriculture, tourism and finance. 

The country is also home to 40 startup investment funds with a total estimated value of 400 million USD in 2018.

In addition, many young business incubators have been opened in localities throughout the nation, creating more than 200 enterprises in various fields since 2015.

Seminars talk ways to develop strong agriculture

How to develop a strong agricultural sector – a factor of sustainable development – was an issue under discussion at some workshops held in Hanoi on November 26.

The events, organised by the Party Central Committee’s Economic Commission, were part of a national teleconference and a national exhibition reviewing the 10-year implementation of the resolution on agriculture, farmers and rural areas, issued at the seventh meeting of the 10th Party Central Committee in August 2008.

Vice Chairman of the Economic Commission Cao Duc Phat said in 2017, agriculture contributed 15.3 percent of total GDP, down 5.1 percent from 2008. The rate of agricultural labourers fell by 12.4 percent to 40.2 percent, while the rate of rural residents decreased by 6 percent to 65 percent.

These figures are predicted to drop in an even faster pace by 2030, respectively down to 10 percent, 25 percent and 55 percent, he said, noting that agriculture now contributes only 1 percent of Ho Chi Minh City’s GDP.

This is an inevitable trend that all countries have to experience on the path to prosperity, Phat said.

An official of the Ministry of Agriculture and Rural Development (MARD) said Vietnam is working to develop a modern and sustainable agricultural sector, along with prosperous and civilised rural areas.

To modernise agriculture and improve farmers’ role and living standards, participants called for more conditions for them to change their livelihoods via diverse vocational training programmes.

Additionally, amid global economic integration, it is an urgent need to invest in agriculture and rural development and resolve rural problems so as to industrialise and modernise agriculture and rural areas, they added.

Meanwhile, Deputy Minister of Science and Technology Pham Cong Tac stressed that science and technology have been a driving force of socio-economic development, including in agriculture. They have effectively helped with the expansion of agricultural production and the improvement of productivity, quality and competitiveness of farm produce in the domestic and foreign markets.

MARD Deputy Minister Tran Thanh Nam said agriculture, farmers and rural areas of Vietnam have witnessed strong changes and obtained significant achievements over the last decade since the Party’s resolution was issued. He attributed this outcome to the investment in and development of the agricultural product market.

With higher productivity and quality, agricultural products have helped boost the sector’s annual growth rate to 2.66 percent between 2008 and 2017, and about 3.5 – 3.6 percent this year.

The official also admitted certain problems, elaborating that total investment in agro-forestry-fishery sectors is still low and tends to decline. The policies on mobilising resources for agricultural and rural development haven’t been strong enough. Notably, farm produce supply and demand remain problematic, while the competitiveness of many products is still modest.

At the seminars, participants also discussed experience in forming sustainable agricultural value chains, hi-tech agricultural models, opportunities for Vietnamese farm produce when new-generation free trade agreements take effect, and the State’s support policies for agricultural investment.

An Giang province works hard to lure more investments

Accelerating administrative reforms, improving business climate, and enhancing competitiveness are parts of the Mekong Delta province of An Giang’s efforts to attract more investments.

According to Director of the provincial Department of Planning and Investment Le Van Phuoc, domestic and foreign investors have registered 45.35 trillion VND (1.9 billion USD) in 211 projects in the province during 2015-2020, up 1.2 times in capital and 20.75 percent in the number of projects as compared to the 2011-2015 period.

However, Phuoc said that the figures are a far cry from the locality’s potential which has not been taped for agriculture and tourism development.

In the past time, besides flexible tax and land lease policies, the local authorities have created the best conditions for investors to complete business procedures, and supported them with site clearance as well as capital and human resources access.

The duration of processing an administrative procedure is shortened to 16 working days instead of 35 days as regulated. Meanwhile, time for granting an investment licence is only one working day, and it takes investors only one day to complete business establishment procedures.

Regarding the agriculture development policy, the province has backed investors in renting land from local residents to carry out large-scale agricultural projects. Investors will also enjoy exemption of land use fees for a couple of years before returning to the locality for high-tech agriculture development.

The business support boards at provincial and district levels have been established to remove bottlenecks for local firms. Furthermore, business dialogue model is maintained twice a year, and the “businessmen coffee” event is held weekly, helping local authorities and investors exchange urgent issues for timely settlement.

The province is ramping up activities in preparation for the investment promotion conference scheduled for December 15 to advertise local potential and competitive edges. At the event, the local authorities plan to present investment decisions to 23 projects worth around 32.4 trillion VND (1.38 billion USD). The projects will be carried out in 2018 or early 2019.

Also, the province has signed investment commitments with giant investors like FLC Group, Phu Cuong Group, TH Group, and T&T Group, who hold strengths in agriculture, tourism and urban development.

Phuoc said that investment capital plays an important part in local socio-economic development. Private and foreign investments account for 48 percent of the total social investment and triples public investment. Large-scale projects in agriculture and processing industry have been put into use, serving as a motive to promote economic growth and economic structure shifting.

Hai Duong attracts further investment in industrial zones

Industrial zones (IZs) in the northern province of Hai Duong have attracted more investment since early this year, according to the provincial management board of IZs. 

As of late October, the province granted licences to 13 foreign-invested projects worth over 103.3 million USD, approved the additional capital of more than 318.6 million USD to 32 FDI projects. It also licensed seven domestic projects with a total registered capital of 642.6 billion VND (27.93 million USD), and revised five others up by 71.53 billion VND. 

At the Cam Dien-Luong Dien IZ in Cam Giang district, the Vietnam-Singapore Industrial Park (VSIP) attracted 10 more investors, raising the total number of investors in the park so far to 11 with a total capital of 235 million USD. 

Local IZs have lured 252 projects to date, including 196 foreign ones that account for nearly 78 percent of the total, with a total registered capital of over 3.92 billion USD, creating jobs for more than 93,000 workers. 

As many as 205 projects are underway, making up 81 percent of the total licensed ones. 

Hai Duong is completing the master plans on the Tan Truong IZ, as well as the first stage of the Dai An IZ as well as the detailed plan of the Gia Loc IZ, and has suggested that the Government expand several IZs and complete the construction of concentrated wastewater treatment stations at the Cong Hoa and Lai Cach IZs. 

Next year, the locality plans to grant licences to 20 foreign-invested projects worth about 100 million USD and adjust the capital of 20 others by roughly 100 million USD. 

Three domestic projects valued at about 100 billion VND are also expected to be licensed, while nearly 50 billion VND will be added to two other projects. 

The province will pay attention to stepping up detailed master plans, attracting infrastructure investment in several industrial zones and clusters, and adjusting a project on infrastructure construction at the Viet Hoa-Kenmark IZ.

The board will also actively guide investors on the legal procedures for investment and trade activities.

North-South expressway project to select investors

The Ministry of Transport (MoT) will sell bidding documents to select investors for the North-South expressway project in the coming time, said Nguyen Danh Huy, head of the ministry’s Department of Public-Private Partnership (PPP).

He said that the feasibility studies on 11 sub-projects for the construction of the eastern section of the expressway project in the 2017-2020 period had been approved.

Accordingly, the MoT is selecting consulting units for those projects. Among the three projects using capital sourced from the State budget, the selections for the Cao Bo-Mai Son and La Son-Tuy Loan are projected to run until the second quarter of 2019. 

Meanwhile, that of the My Thuan 2 bridge project will be carried out over nine months to finish in the following quarter.

Huy added that the construction of eight PPP projects will start in the first quarter of 2020, while the building of three public investment ones will begin next year and are due to be finished by 2021.

As many as 654km of the east section of the North-South expressway is set to be built during 2017-2020, with a total investment of nearly 118.72 trillion VND (5.09 billion USD), including 55 trillion VND from the State budget.

Seaports’ freight volume continues upward trend

The volume of cargo passing through seaports across Vietnam rose by 19 percent to 478 million tonnes in the first 11 months of 2018, according to the Vietnam Maritime Administration.

The volume included 16.3 million TEUs (20-foot equivalent units) of containers, up 26 percent from the same period last year.

In November alone, seaports nationwide handled nearly 43.5 million tonnes of cargo, up 20 percent year-on-year.

The biggest growth in freight volume was recorded at ports in the central province of Quang Nam at 132 percent, followed by Ha Tinh with 100 percent, and Nghe An by 63 percent.

Ports seeing the highest growth rate of containers year-on-year were those in Dong Thap with 117 percent and Quang Ninh at 104 percent, which were attributed to the new international container terminal in the province’s Cai Lan Port.

Meanwhile, several ports in Kien Giang and Quang Tri reported declines in freight volume, ranging from 33 percent to 59 percent year-on-year.

Vietnam currently has 44 seaports with a total design capacity of 470-500 million tonnes of cargo each year.

Hung Yen revokes licenses from 14 delayed projects

The Department of Planning and Investment in the Red River Delta province of Hung Yen has asked the provincial People’s Committee to revoke investment licences from 14 projects due to excessive delays.

All 14 projects were granted investment certificates in the 2008-2014 period, but they have failed to embark on implementation.

One of the major projects on the list is the Secoin - CDT industrial complex, located in Van Lam district.

The investor was granted a certificate of investment at the end of 2008 to implement a project on an area of over 50,000sq.m. However, the project has failed to complete compensation, ground clearance and procedures for construction and operation.

Similarly, a polyester fiber factory in My Hao district covering over 42,000sq.m was licensed in July 2008. To date, the project has not carried out compensation for ground clearance or started construction.

Other projects that have been suspended include pig farms, a paper packaging and processing plant, a lighting equipment factory and a furniture factory.

Chairman of the provincial People’s Committee Nguyen Van Phong asked the Department of Planning and Investment to complete licence withdrawal procedures in accordance with the law on investment. 

The province would reissue licences to more qualified investors, Phong said.

Outstanding individuals, organisations in farming honoured

Prime Minister Nguyen Xuan Phuc (front row, third from left)

Prime Minister Nguyen Xuan Phuc presented awards to 200 organisations and individuals, as well as 11 businesses for their outstanding achievements in the implementation of the resolution adopted by the seventh plenum of the 10th Party Central Committee on agriculture, farmers, and rural development. 

Speaking to the awards ceremony in Hanoi on November 26, PM Phuc highlighted the importance of agriculture, farmers, and rural development towards national sustainable socio-economic development, political stability, and defence-security. 

The PM said the resolution brought about a number of breakthrough policies that have improved the physical and spiritual lives of farmers, contributing to modernising socio-economic infrastructure, especially in power, roads, and school facilities. 

As of late 2017, 34.4 percent of communes met the criteria on new-style rural areas, which is expected to reach over 40 percent in late 2018 and 50 percent in 2019. 

According to him, the resolution has motivated strong changes in agricultural restructuring, stepped up a modern and innovative agriculture sector, and brought high-quality farm produce to the world which has won prestigious international awards in ASEAN, the US, Russia, the United Arab Emirates, and China. 

PM Phuc expressed his wishes that the awarded recipients would continue contributing to smart agricultural adaptation to climate change and global integration. 

He asked agencies and localities to pay further attention to commendation for individuals and organisations with outstanding initiatives in the field, as well as adopt chain connectivity measures and modern agricultural production models to improve local livelihoods, thus fulfilling socio-economic targets set by the Party, National Assembly, and Government.

Int’l experts propose measures for Vietnam’s sustainable energy

International experts put forward measures for Vietnam’s sustainable energy development and reduction of gas emission during the second high-level meeting of the Vietnam Energy Partnership Group (VEPG) in Hanoi on November 26.

Speaking at the event, head of the delegation of the European Union to Vietnam Bruno Angelet noted that to enhance its energy supply while protecting the environment, Vietnam should pay heed to the role of private investment, rooftop photovoltaic systems, and appropriate reform of the country’s energy structure.

Although renewable energies, like solar and wind, have attracted many foreign investors to Vietnam, there is a shortage of legal factors to support business’ operation in the field, he added. 

Furthermore, Vietnam needs a practical and comprehensive strategy to gradually reducing its use of charcoal.

The EU is willing to help Vietnam switch to clean energy, while ensuring reasonable energy prices for Vietnamese people, as well as the country’s competitiveness, said Angelet. 

Meanwhile, World Bank (WB) Country Director for Vietnam Ousmane Dione pledged that the WB will provide support for Vietnam to bring sustainable, clean, and trustworthy energy sources with reasonable prices to all citizens, including technical and policy consultation, development assistance, and measures to minimise risks, among others.

In response, Vietnamese Deputy Minister of Industry and Trade Dang Hoang An affirmed that the country will carry out recommendations delivered at the meeting, in line with building policies and plans for energy development in the time to come. 

According to the Ministry of Industry and Trade, Vietnam recorded 40 major policy recommendations submitted by technical working groups of the VEPG. 

Established in June 2017, the VEPG aims to work towards effective and efficient international support to sustainable energy development in Vietnam, in line with national laws and international agreements of which Vietnam is a member.

The group’s five prioritised fields include renewable energy, energy efficiency, energy sector reform, energy access, and energy data and statistics.

Malaysian businesses seek opportunities in Vietnam's chemical industry

Malaysia External Trade Development Corporation (MATRADE) has announced that it will promote initiatives to boost trade exchanges between Malaysia and Vietnam through a number of cooperation programs in the field of chemicals.

Under the programs running from November 26-28, Malaysian businesses will introduce high quality chemical products along with world class high-end services, including cleaning products in the industrial sector, detergents, specialized chemicals, raw materials related to petro-chemistry, plastics products, warehousing services, Original Equipment Manufacturers (OEMs) outsourcing, technical services to support the water treatment industry and palm oil.

A wide range of activities are planned throughout the program including seminars and (Business-to -Business) B2B meetings.

Vietnam remains as strategic trading partner for Malaysia, ranking 13th in the globe and fourth in the ASEAN region. 

The country is also seen as a key investment destination with Malaysia being its  seventh largest foreign investor.

Land rental rate in Binh Duong’s IPs tops 80 percent

The rate of land rental in the industrial parks (IPs) and industrial clusters in the southern province of Binh Duong has reached 80.8 percent and 70.6 percent, respectively, according to the provincial Department of Planning and Investment. 

Director of the department Nguyen Thanh Truc said the locality has 29 IPs, with 27 of them put into operation on a combined area of 12,743 ha, and 12 industrial clusters with a total area of 790 ha.

In 2018, investors in IPs and industrial clusters have paid attention to fostering promotion activities and investment for upgrading infrastructure. Around 276 billion VND (11.8 million USD) were invested into developing industrial infrastructure facilities. 

The locality has attracted over 1.3 billion USD from foreign investors and 5.19 trillion VND from domestic ones into IPs and industrial clusters. 

Truc said in 2018, enterprises operating in the IPs have disbursed 2 billion USD for the investment in workshops and equipment serving their production and business. Their revenue hit 28.5 billion USD so far, and their exports, 17 billion USD, making up 67.2 percent of Binh Duong’s export turnover. 

The local authority has directed investors to build IPs in accordance with the adjusted planning approved by the Prime Minister, according to which Binh Duong will have 33 IPs with a total planning area of 14,790 ha. The approval for expansion of Bau Bang and Cay Truong IPs is hoped to help the locality attract more investment to promoting service industry and urban development. 

The provincial People’s Committee said that along with implementing socio-economic development goals in the 2016-2020, attention will be paid to planning expanding and upgrading IPs towards meeting the demand of investors. 

The establishment of IPs and industrial clusters has created a key momentum to promote Binh Duong’s economic development, especially in processing and manufacturing industry. The province’s industrial production value accounts for 9.7 percent of the nation, and 24 percent of the Southeast region.

VN, India eye textile co-operation     

Trade between India and Viet Nam in textiles has grown significantly, but there is still huge untapped potential, the Indian consul general in the city has said.

In his opening remarks at a business interaction event titled “Textiles: India-Viet Nam Co-operation”, K Srikar Reddy said Viet Nam was among the top five textile and clothing exporting countries along with India.

Its exports exceeded US$31 billion last year, a year-on-year growth of 10.23 per cent.

According to Indian government figures, during the 2017-18 fiscal year, India’s textile and clothing exports were worth around $36.7 billion. Its exports to Viet Nam grew by 42 per cent to $555 million.

“Bilateral trade in textiles has registered impressive growth during the last two years. However, there is still a lot of potential for trade in the area of textiles between our countries,” Reddy said.

Viet Nam had to import a lot of raw materials and was looking to diversify its sourcing of raw materials for garments such as cotton, yarn, made-ups and fabric, he said.

India is one of the suppliers of high-quality materials, fabric and machinery at competitive prices globally, he said.

Also, under the India-ASEAN FTA, most types of cotton yarns, woven cotton fabrics and cotton knit fabric could be imported duty free from India from January 1 next year, he said.

“Therefore, India can become a reliable partner for Viet Nam in supplying cotton, yarn and fabrics.”

Nguyen Hong Giang of the Viet Nam Cotton and Spinning Association (VCOSA) said there was plenty of opportunity for co-operation in yarn, cotton and fabrics between businesses in the two countries.

“Indian companies are strong in making cotton fabrics and textiles. From the perspective of the Viet Nam Cotton and Spinning Association, we welcome investment from India in fabric making.”

When investing in Viet Nam, Indian firms would get tax breaks from FTAs that Viet Nam has signed or would be signing, he said.

“You buy more yarn from Viet Nam and we will buy more cotton fabric from you. That is a win-win situation.”

Reddy said: “Many Indian companies have already invested in Viet Nam in the textile and garment sector. I would also like Vietnamese companies to explore the gigantic market of 1.3 billion people in India by investing in production of yarn, fabric, readymade garments, and others in India.”

The Indian Government allows 100 per cent foreign direct investment under the automatic route in many sectors, including textiles, he said.

Shailesh Martis of the Cotton Textiles Export Promotion Council gave a detailed presentation on the Indian textiles sector and invited Vietnamese companies to attend IND-TEXPO 2019, a textile exhibition showcasing the entire range of textile products, to be held from January 27 to 29 next year at Coimbatore, India.

Importers and buyers from Viet Nam who are interested in sourcing from India can benefit from a subsidised scheme for hotel stay and travel by visiting the show in India, he said.

Organised by the Indian consulate in HCM City in co-ordination with VCOSA, the event attracted nine Indian companies who also participated in the 18th Viet Nam International Textile and Garment Industry Exhibition in HCM City from November 21 to 24 besides local firms. 

$15m plant opens in Ha Nam     

A Japanese-invested plant specialising in manufacturing, processing and assembling plastic, rubber and metal components for machines and equipment opened for business on Friday.

Located in the northern province of Ha Nam. Financed Chuo Bussan Co is a US$15 million plant spanning 2ha in the Dong Van 3 Industrial Park, Duy Tien District.

Yochihiko Mio, chairman of Chuo Bussan, said this is the firm’s first project in Viet Nam, and he hopes local authorities and agencies will support and create favourable conditions for the company to operate effectively.

In his speech, vice chairman of the provincial People’s Committee Truong Quoc Huy praised efforts made by the Japanese investor to accelerate the construction of the project which was completed on schedule.

The plant’s operation would help meet the demand of the market and create jobs for labourers, contributing to promoting the local socio-economic development, Huy said.

The vice chairman added the locality has been making efforts to improve the investment and business environment, and create good conditions for projects to be implemented quickly and smoothly.

Ha Nam Province is home to 226 foreign-invested projects with a total registered capital of $2.5 billion. More than 70 of them, worth more than $800 million, are financed by Japanese businesses in several sectors including engineering and manufacturing, automobile, motorbikes and electronic components.

In the future, the province will prioritise attracting hi-tech industries, manufacturing and processing, supporting industries, hi-tech farming, food processing and health-care, director of the provincial Department of Planning and Investment Nguyen Van Oang said, adding that his province targets to foreign investors from developed economies such as Japan and South Korea. 

Textile and footwear industries remain bright spots for Vietnam’s economy

The textile and apparel industry is set to grow significantly in the coming years whilst the leather and footwear industry will also enjoy positive growth.Thus, both are considered bright spots for the national economy.

The two industries are forecasted to have the opportunity for market expansion to the EU and the US.

According to the Ministry of Industry and Trade (MoIT), the garment and textile industry enjoyed the largest proportion of growth amongst other industries during the first ten months of 2018.

During the reviewed period, garment and textile export turnover hit roughly US$25.15 billion, up 17.1% from last year’s same period, with a major focus on the key markets such as the US, the EU, the Republic of Korea, China, and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) member nations.

Textile and garment companies’ production activities have showed positive signs due to an abundance of orders with many companies having even filled orders that will run until the end of the third quarter  or the end of 2018. Most notably, the US has retained its place as a potential import market for Vietnamese garment and textile products with many large orders boosting growth in the industry.

Furthermore, the output of leather shoes hit US$227.1 million pairs in the first ten months of 2018, up 5.6% from a year earlier while total footwear export turnover was estimated to be at US$ 12.9 billion, a year-on-year increase of 9.7%. The signing of free trade agreements (FTAs) such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) will offer plentiful opportunities for further development of the garment and textile industry through greater foreign investment attraction, giving a boost to Vietnam’s exports to the EU and CPTPP member nations’ markets.

Foreign investment capital flowing into both industries are expected to see higher growth after Vietnam’s involvement in a series of FTAs. The recent ongoing US-China trade war will result in foreign clients’ decision to shift their production orders from China to Vietnam in order to avoid higher taxes.

In addition to opportunities and prospects, the MoIT has pointed out one of the challenges facing garment and textile businesses, including rising input costs for the minimum wage, social insurance, electricity and water consumption. Industry 4.0 is also set to have a strong impact on Vietnam's garment and textile sector.

  As a matter of fact, there will be more risks from the US’ traceability of materials used for imported garment products in order to impose additional taxes on products made from Chinese materials.

Therefore, the MoIT has warned Vietnamese businesses to use materials sourced domestically or from other markets rather than Chinese materials to avoid potential risks.

 Businesses need to take full advantage of FTAs and be proactive in responding to trade protection and technical barriers that occur in different foreign markets.

 It is imperative for them to find solutions to bolster export and import in a variety of highly lucrative markets, seize any opportunities for market expansion, and expand market share of Vietnamese goods with traditional and FTA partner markets, the ministry said.

Food giants hope to feast on snack sales in Vietnam

Vietnamese companies are hoping to make big bucks selling popular foods like fried chicken and crispy pork skin.

Nguyen Ngoc An, general director of Vietnam Livestock Industry Company (Vissan), sees great potential in the snacks market.

He is not referring to potato chips, but to fresh food made with chicken and pork.

"Deep-fried pork skin, seaweed dried chicken and pha lau (pork meat and offal braised in a spiced stock) are favorite dishes among young people," he said.

"Such snacks will be a good source of revenue for the company in the near future."

Already in the market, Saigon Food JSC has released more than 10 fresh snack products, including rice paper pancakes, corn fried shrimps, and tamarind fried balut eggs, which are selling very well.

Le Thi Thanh Lam, deputy general director of Saigon Food, said that the company's products are sold at 7-Eleven convenience stores in Ho Chi Minh City.

"In the near future, we will be exploring new product lines that fit the tastes of consumers to expand the snacks segment," she said.

A leading producer of poultry eggs, Ba Huan JSC has also latched on to this trend, launching a group of snack products including spicy chicken legs, skewers, sausages, and omega 3 flan.

Pham Thanh Hung, deputy general director of the company, said these snacks are new to the market, but sales are quite high. Most of the products are sold in supermarkets or convenience stores. Spicy chicken legs are most liked, he said.

Vinh Dat Food JSC, which introduced fresh snacks into the market before any of the above companies, said that initially, processed egg products such as balut egg stew, preserved black eggs and braised eggs saw slow consumption.

But by 2017, explosive growth of this segment forced the company to invest in more production facilities to meet demand. In the coming months, the company will develop more soft-boiled egg products and wholesale various types of braised eggs to restaurants.

The latest survey carried out by market research firm Decision La shows that on average Vietnamese youth spends VND13 trillion (US$556.53 million) on snacks every month.

And according to statistics by London-based market research firm Euromonitor, by the end of 2016, Vietnam had about 149,000 food kiosks on the streets, including mobile vans or fixed in front of houses, which earn about VND46.9 trillion (US$2.01 billion) per year.

New Vietnam airport could host long haul or beyond-ASEAN flights

Several options, including exclusive servicing of long-haul flights, have been proposed for the Long Thanh Airport planned in southern Vietnam.

The Civil Aviation Authority of Vietnam (CAAV) has recommended two broad options for dividing traffic between the existing Tan Son Nhat International Airport in Ho Chi Minh City and the Long Thanh Airport that will built in the neighboring province of Dong Nai.

The first option that it has suggested to the Transport Ministry is that Long Thanh will handle all international flights of more than 1,000 km, with the rest flying into Tan Son Nhat.

For domestic flights, carriers can choose where they want to be based.

The second option is to allocate all flights from outside Southeast Asia to Long Thanh.

The allocation criteria can be reconsidered after five years of actual operation, the CAAV proposed.

Carriers Jetstar Pacific and Vietjet have supported the second option.

Vietnam Airlines wants to use Long Thanh for all international flights and certain domestic flights and Tan Son Nhat only for domestic flights.

The preliminary feasibility report on the Long Thanh airport by a joint venture between firms from Japan, France and Vietnam had suggested that all budget carriers could fly into Tan Son Nhat, and all full-service airlines use Long Thanh.

But CAAV executives said the law does not distinguish between full-service and low-cost airlines, making the suggestion impractical.

In the communication it sent recently to the Transport Ministry, the CAAV suggested operating international and domestic flights from both airports, ensuring their equal and non-discriminatory use.

An aviation specialist who did not want to be named pointed out that airlines would prefer to operate from Tan Son Nhat because of its high capacity and proximity to downtown Ho Chi Minh City.

The ministry needs to allocate flights in such a way as to ensure both airports benefit equally and the load on Tan Son Nhat eases.

The allocation of domestic flights to Tan Son Nhat and international flights to Long Thanh is not feasible since airlines fly the same aircraft on both international and domestic routes, meaning they would often have to fly empty between the two airports, the specialist noted.

He said the distribution of routes should also depend on the growth of the aviation market.

Situated 40 kilometers east of Ho Chi Minh City, the Long Thanh airport is expected to take up the overflow from the largest existing airport in the country, the Tan Son Nhat International Airport.

The Tan Son Nhat International Airport now receives 32 million passengers a year, far beyond its designed capacity of 25 million.

Long Thanh, to be built in three phases over three decades, was recently listed by CNN Travel as one of the world’s 16 most exciting airport projects.

The first phase is scheduled for completion in 2025 when it will be able to handle 25 million passengers a year. The next two phases will be built in 2030-2035 and 2040-2050.

It will have a capacity of 100 million passengers and five million tons of cargo when completed.

The Airports Corporation of Vietnam said airports had handled 87 million passengers in the first 10 months of this year, up 12% year-on-year.

The number of international passengers rose by 23% and domestic passengers by 7%.

Phu Quoc casino gets nod, Vietnamese can gamble there

A Vingroup-invested firm has been allowed to include a casino in a hotel-amusement complex on Vietnam's largest island Phu Quoc.

The People’s Committee of Kien Giang Province announced that the Prime Minister has approved in principle the casino’s inclusion in a hotel-amusement being built on the southern province's island.

With the casino business, total investment in the complex will increase to VND50 trillion (US$2.14 billion).

The complex, which is under construction, is scheduled to start operating in 2021. Its main investor is the Phu Quoc Tourism Investment and Development Jsc, a company in which Vingroup, Vietnam’s largest private conglomerate, holds a 50% stake.

The casino project is part of a pilot program that would allow Vietnamese citizens to gamble in casinos in the country for the first time.

For decades, Vietnam has banned gambling as a social evil. Vietnamese were also prohibited from gambling in the few casinos that have been built in the country.

Shifting its stance, the government has allowed citizens over 21 years old with a monthly income of at least VND10 million (US$445) to gamble in local casinos from last March under a three-year pilot program. However, the casinos have to obtain approval from the government on a case-by-case basis to allow Vietnamese citizens to use their services.

Vietnam's average annual income was around US$2,200 last year.

There are fewer than 10 casinos in Vietnam, mostly smaller ones outside major cities. Their services are reserved exclusively for foreign passport holders.

Vietnam eyes business opportunities in UAE

The Asia-Africa Market Department under the Ministry of Industry and Trade (MoIT) plans to organise a trip for businesses to Dubai, the United Arab Emirates (UAE) in order to aid them in developing markets, promoting exports and strengthening trade ties from between December 10 and 15.

The trip's aim is to help Vietnamese businesses analyze markets, seek business partners and introduce their products in order to boost Vietnam's exports with a focus on key products such as rice, coffee, pepper and chemicals amongst others being exported to the UAE.

According to statistics from the General Department of Vietnam Customs, total import-export turnover between Vietnam and UAE in 2017 surged by 2.6% to US$5.6 billion compared to 2016 with more than US$5 billion in export turnover and US$562 million in import turnover.

During the trade mission in Dubai, the MoIT will co-ordinate with relevant units to organise a Vietnam-UAE business forum in Dubai and attend the China Homelife Dubai Expo.

Additionally, the MoIT will also survey wholesale markets and work together with large associations and companies in the UAE with the purpose of setting up business partnerships to bolster Vietnam's exports to the Western Asia market.

Quality should be prioritised in SOE restructuring, expert says

The restructuring and equitisation of State-owned enterprises (SOEs) should focus on quality instead of quantity, and the State’s investments need to be restructured to become more effective, an expert has said.

The remark was made by Director of the Central Institute for Economic Management (CIEM) Nguyen Dinh Cung at a conference on the reform and improvement of SOEs on November 21.

At this event, Deputy Prime Minister Vuong Dinh Hue emphasised the viewpoint that SOEs should focus only on key fields like defence and security as well as areas that the private sector does not invest in, and that the State only divests its capital from firms with effective operation.

He noted that the equitised and divested value between 2016 and 2018 rose 2.5-fold from the 2011-2015 period, adding that operations of SOEs have continued to improve. 

Their total assets have increased by 3%, pre-tax profit up 4 percent, and contributions to the State budget up 5% from 2016. In the first eight months of 2018, SOEs fulfilled over 70% of this year’s revenue and profit targets, Hue said.

CIEM Director Cung said SOEs are still an irreplaceable economic force for the time ahead.

“At present, we solely focus on equitisation and divestment because we hope that businesses will change their administration and operate in line with the market,” he noted.

Pointing out problems in the equitisation and divestment process, Minister of Finance Dinh Tien Dung said that according to the Prime Minister-approved plan, at least 85 SOEs must have their equitisations completed in 2018. However, only 12 firms had been equitised as of November 18, so the target is unlikely to be reached this year.

Meanwhile, State capital must be divested from 181 enterprises in 2018, but the work has only been completed in 31 firms so far.

He said that in order to step up the reform and improvement of SOEs, ministries, sectors, localities, as well as SOEs themselves must be synchronous in adapting careful measures, including promoting consensus in the work and promptly fine-tuning the relevant legal system.

Dung also asked the parties concerned to submit restructuring plans for the SOEs under their remit to authorised agencies for approval before the end of this year. Additionally, heads of ministries, sectors, and localities must be responsible for the outcomes of SOEs’ restructuring, reform, and improvement.