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Agro-forestry-fishery exports generate 25.7 billion USD in 8 months
The agro-forestry-fishery sector raked in 3.13 billion USD from exports in August, raising the total value in the first eight months of this year to 25.7 billion USD, up 7.3 percent year-on-year.
According to the Ministry of Agriculture and Rural Development, the best performers in the period included rice, fruit and vegetables, key forestry products and seafood.
Exports to major markets like the Association of Southeast Asian Nations (ASEAN), the Republic of Korea (RoK), China, the US and Japan increased significantly over the past eight months.
The country exported about 4.4 million tonnes of rice worth 2.2 million USD between January-August, up 6.8 percent in volume and 22.1 percent in value from the same period last year. In August alone, 441,000 tonnes valued at 209 million USD was shipped abroad.
China remained Vietnam’s largest rice importer, making up 24.7 percent of the market share.
Strong growth in rice export was also seen in other markets like Indonesia, Iraq, the Philippines, Malaysia, Ivory Coast and the United Arab Emirates (UAE).
Vietnam earned 5.6 billion USD from the export of wood and timber products, representing a year-on-year rise of 12.6 percent. The US, China, Japan and the RoK were the country’s major markets in this sector.
During the reviewed period, the country exported 5.5 billion USD worth of aquatic products, up 5.3 percent from the corresponding time last year, mostly to the US, Japan, China, and the RoK.
Fruit and vegetable exports posted 2.7 billion USD, up 14.1 percent year-on-year.
However, other key agricultural products like pepper, coffee and rubber saw export value decrease in the past eight months.
The ministry said import turnover of the sector also expanded by 9.2 percent to 20.72 billion USD, with strongest growth in Urea, corn, seafood, wheat, fruit and vegetables, cattle feed and materials.
Khanh Hoa develops seafood, ecological protection
The People’s Committee of the central coastal province of Khanh Hoa has approved a development plan for the seafood sector for 2025, with a vision towards 2035.
The province aims to develop off-shore fishing to increase the productivity and quality of aquatic products, as well as protect the ecological environment and aquatic resources.
Seafood is expected to make up about 62 percent of the agricultural sector’s revenue by 2035.
The total seafood production value is projected to hit nearly 10 trillion VND (428.8 million USD) by 2025, and increase to 13 trillion VND (557.4 million USD) by 2035.
The province will increase the number of off-shore fishing vessels from the current 1,365 to over 1,780 by 2025, and 2,120 by 2035.
It moves to reduce the aquaculture space by 3,575ha by 2020, a year-on-year decline of 7.3 percent; 3,457ha by 2025; and 2,742ha by 2035, yet boost investment in local infrastructure and application of new technology.
Particularly, the locality plans to restore aquatic resources and release some varieties that are at risk of depletion to Nha Trang, Van Phong, and Cam Ranh bays, as well as Nha Phu and Thuy Trieu lagoons.
The province will build some marine preservation sites in Nam Yet island (Truong Sa district), Binh Ba island (Cam Ranh city), Ran Trao maritime ecosystem conservation site (Van Ninh district), Nha Phu langoon (Ninh Hoa town), Thuy Trieu langoon (Cam Lam district). It will also focus on restoring and protecting the natural habitat of aquatic species in local inland waters.–VNA
The diplomatic missions of Vietnam in Cambodia, South Africa and Hong Kong (China) hosted banquets on August 30 in celebration of the country’s 73rd National Day (September 2, 1945).
The event in Phnom Penh saw the presence of Cambodian Deputy Prime Minister and Chairman of the Council for Agricultural and Rural Development Yim Chhaily, Minister of Tourism Thong Khon, other senior officials, heads of other countries’ diplomatic agencies in Phnom Penh, and representatives of Vietnamese people in Cambodia.
In his speech, Ambassador Vu Quang Minh highlighted the major achievements Vietnam has attained since President Ho Chi Minh read the Declaration of Independence on September 2, 1945, heralding a new era for the country.
He affirmed Vietnam’s consistent foreign policy of independence, self-reliance, equal and mutually beneficial cooperation for common prosperity and sustainable development, multilateralisation and diversification of external relations, and being a friend and a trustworthy partner of countries and also a responsible member of the international community.
Vietnam and Cambodia are close neighbours with long-standing solidarity and friendship nurtured by generations of the two countries’ leaders and people, he said, noting that bilateral economic, trade and investment ties have been developing rapidly, turning Vietnam into one of the leading partners of Cambodia.
On behalf of the Cambodian Government, Tourism Minister Thong Khon thanked the Vietnamese Government and people for supporting his country throughout history.
He said the new Government of Cambodia will continue working closely with Vietnam to enhance their friendship and cooperation within bilateral and multilateral frameworks for the sake of the two peoples and the countries’ peace, stability and prosperity.
Also on August 30, Deputy Prime Minister and Minister of the Royal Palace Samdech Kong Sam Ol came to the Vietnamese Embassy to deliver King Norodom Sihamoni’s letter of greetings on Vietnam’s National Day to Vietnamese President Tran Dai Quang. He also sent congratulations flowers of the King and Queen Mother Norodom Monineath Sihanouk to the embassy.
Meanwhile, a banquet was held by the Vietnamese Embassy in South Africa to mark the National Day as well as the 25th anniversary of the countries’ diplomatic ties.
Ambassador Vu Van Dung said Vietnam and South Africa have had sound relations for many years. Vietnam always attaches importance to developing traditional ties with South Africa in different fields. Bilateral trade has surged from 21.5 million USD in 1997 to 1 billion USD in 2017.
Sindi Mququ, Director of the Central Asia – South Asia – Southeast Asia division at the South African Foreign Ministry’s general department for Asia – Middle East, congratulated the Vietnamese Government and people on the 73rd National Day.
She said sound relations between the two countries are the solid foundation for their cooperation to be strengthened and diversified.
Vietnam’s investment in and exports to South Africa are higher than her country’s corresponding activities in Vietnam, the official noted, asking the Southeast Asian nation to share these experiences with her country, especially on the occasion of Vietnam-South Africa partnership forum slated for this September.
Sindi Mququ said the South African Government wants to increase bilateral trade with Vietnam and considers this a pillar in the bilateral partnership.
The banquet in Hong Kong (China) hosted by the Consulate General of Vietnam in Hong Kong and Macau was attended by Secretary for Justice Teresa Cheng and Secretary for Security John K.C. Lee of Hong Kong, and Deputy Commissioner of the Chinese Foreign Ministry Song Ru’an.
Consul General Tran Thanh Huan said the Vietnam-China comprehensive strategic cooperative partnership has continued to develop in multiple spheres. In this trend, Vietnam’s relations with the special administrative regions of Hong Kong and Macau have also grown fast and stably.
Hong Kong is a major trade and investment partner of Vietnam. As of July 2018, it had invested in 1,312 projects worth 18.3 billion USD in Vietnam, ranking sixth among foreign investors here.
The Southeast Asian nation is also becoming an attractive destination for Hong Kong tourists. In 2017, more than 47,700 vacationers from this special administrative region visited Vietnam, up 37.9 percent from the previous year, Huan added.
Teresa Cheng congratulated Vietnam on its accomplishments, noting that the country remained the 10th largest trade partner of Hong Kong in 2017.
She expressed her belief that with existing potential and advantages, the country’s win-win cooperation in culture and education with Hong Kong and Macau will further increase, thus contributing to the friendly neighbourliness and comprehensive strategic cooperative partnership between Vietnam and China.
Egypt has reached agreement with Vietnam to import 1 million tonnes of rice in three to four months, the country’s electronic newspaper Ahram reported.
“The visit of the President of Vietnam to Egypt resulted in a trade cooperation agreement involving the supply of 1 million tonnes of white rice, with the agreement coming into force next week”, the newspaper cited head of rice division of the Egyptian Federation of Industries Rajab Shehata as saying to Reuters on August 30.
The amount, which will be transported to Egypt in various batches over the course of three to four months, will strengthen India’s strategic reserve of rice for the next year.
The newspaper said in an attempt to rationalise the use of water resources, Egypt has reduced the area allowed for rice cultivation, and imposed tough new penalties on farmers who illegally grow rice.
Traders said that the policies pushed Egypt to import up to 1 million tonnes of rice next year.
Shehata said that import is the responsibility of the government, not the private sector. He did not mention the import price of Vietnamese rice but said that it would be cheaper than that from China.
Egypt consumes some 3.3 million tonnes of rice per year.
Vietnamese, Chinese localities enhance border customs cooperation
The customs cooperation between Vietnam’s northern provinces of Lao Cai, Dien Bien, Ha Giang, and Hai Phong city and China’s Kunming has proven successful, reaping many positive outcomes.
The two sides have strengthened coordination in preventing smuggling and trade frauds, as well as facilitating efficient customs clearance for goods, people’s travelling, and transportation.
They also coordinated well in the protection of intellectual property rights, border management, exchange of data, and capacity building for customs officers.
Nguyen Viet Quang, who is in charge of Lao Cai’s customs department, said the Chinese side have enabled local farm produce exporters to transport their goods by car across the border, thus helping promote the export turnover of Vietnamese agricultural products through the Lao Cai international border gate.
Dragon fruit and lychee exports were reported as having increased the most amongst Vietnamese agricultural products entering China via the Lao Cai international border gate since the beginning of this year.
As of June 13, Vietnam exported 284,516 tonnes of dragon fruits worth 185.75 million USD, up 688 percent against the same period last year.
The country shipped 7,896 tonnes of lychees to China as of June 14, earning 4.15 million USD in revenue, a year-on-year rise of 162 percent.
High growth was also seen in watermelon exports, reaching 12,395 tonnes, worth over 4.7 million USD; 16,666 tonnes of pepper, worth 46.72 million USD; and 10,973 tonnes of other fruits and vegetables, worth 19.65 million USD.
During the recent 12th annual talks between the customs departments of Vietnamese localities and China’s Kunming, the two sides agreed to expand cooperation in a more extensive and intensive manner.
They agreed to implement a joint action plan on anti-smuggling in the border area between customs of Vietnam’s Lao Cai, Dien Bien, and Ha Giang and China’s Kunming over the 2018-2019 period.
Added to this is the need to enhance mutual assistance in the inspection of trade fraud and customs violations across the shared border.
The two sides will quickly respond to assistance requests for key commodities, such as solid waste, ammunition, explosives, wild animals, automobiles, white sugar, and food, in addition to strengthening mutual support in inspecting customs valuation and commercial contracts in cases with special requirements.
Furthermore, Vietnamese and Chinese customs offices will implement cooperation in reforming methods of supervising customs management, making it easier to complete customs clearance procedures and exchange data on goods imported and exported via border gates.–VNA
Macquire Bank now holds nearly 1.3 million shares or 4.74% of Yeah1`s charter capital.
Australia-based Macquarie Bank is no longer a major shareholder of Vietnamese entertainment group Yeah1 following the sale of 88,150 shares, according to the Ho Chi Minh Stock Exchange (HoSE).
After concluding the transaction, Macquire Bank now holds nearly 1.3 million shares of Yeah1 or 4.74% of the latter's charter capital.
In July, Macquarie Bank acquired over 1.57 million shares, equivalent to 5.74% of Yeah1's charter capital to become the group's major shareholder.
Yeah1 has two other major shareholders in the names of Ancla Asset Limited with 3.4 million shares, equivalent to a 12.49% stake, and DFJ VinaCapital Venture Investment Ltd with over 1.95 million shares or a 7.14% stake.
The firm also has two individual major shareholders namely Nguyen Anh Nhuong Tong, its chairman, and CEO Dao Phuc Tri.
Yeah1 debuted its shares on HoSE on June 26 at the reference price of VND250,000 ($11). At the close of the first trading day, Yeah1's shares rose to VND300,000 ($13.18) apiece, a record in the local stock market, raising the market capitalization of this entertainment business to VND8.28trillion ($383 million).
Established in September 2006, the entertainment group runs a series of entertainment channels including Yeah1TV, Yeah1family, Imovietv and SCTV2, with nine subsidiaries and four indirect subsidiaries including Yeah1 Vietnam Co., Netlink Online Corporation and TNT Media Advertising.
Yeah1 is currently the largest multi-channel network in Asia and the 6th largest in the world by monthly views, it claims. The group is also the only certified publishing partner of Google, which has full rights to publish Google content in Southeast Asia.
In 2017, Yeah1 recorded VND851 billion (US$37.5 million) in revenue, up 48% year on year. The company posted after-tax profit of VND82.3 billion (US$3.63 million), five times the figure posted in 2016.
The group set a revenue target of VND1.6 trillion (US$70.64 million) in 2018, up 90% year-on-year and a profit of VND172 billion (US$7.6 million), up 109% year-on-year.
Japan Taisho Group increases holding in Vietnam DHG Pharmaceutical to 32%
DHG`s largest shareholder is State Capital Investment Corporation (SCIC) with 56.6 million shares or 43.31% of the medicine maker`s charter capital.
Japan-based Taisho Pharmaceutical completed the purchase of 9.2 million shares at DHG Pharmaceutical (DHG), increasing its stake at the latter to 32% or 41.8 million shares, Taisho said in a filing to the Ho Chi Minh City Stock Exchange (HoSE).
Before the deal, the Japanese group owned over 32.6 million shares of the Vietnamese firm or a 24.94% stake.
With a public offer of VND120,000 (US$5.20) apiece, Taisho Pharmaceutical was calculated to have spent over VND1.1 trillion (US$47.25 million) to increase its holding in DHG.
Taisho Pharmaceutical in early June spent VND85.5 billion (US$3.71 million) for 650,000 shares of DHG, raising its holding in the Vietnamese medicine producer to 24.94%.
DHG's largest shareholder is State Capital Investment Corporation (SCIC) with 56.6 million shares or a 43.31% stake.
On July 4, DHG Pharmaceutical's foreign ownership limit was removed, as a result, the company adjusted its targets of revenue and pre-tax profit growth of at least 13% and 7%, respectively.
At the close on August 20, DHG's share value declined for a fifth straight day, touching to VND96,000 (US$4.13) per share. The stock stayed still on August 21.
Taisho Pharmaceuticals, headquartered in Tokyo, is a leading Japanese pharmaceutical company specializing in the manufacturing of pharmaceutical products and non-prescription dietary supplements under well-known brands.
SCIC reports 19% decrease in profit in Jan-Jun
SCIC sets revenue target of VND7.9 trillion (US$341.62 million) and after-tax profit of over VND5.4 trillion (US$233.51 million) for 2018.
In the first six months of 2018, State Capital Investment Corporation (SCIC), the Vietnamese government's investment arm, reported a net profit of VND1.94 trillion (US$83.92 million), down 19% year-on-year, VnExpress reported.
SCIC's revenue during the January - June period reached VND2.29 trillion (US$99.06 million), down 14% year-on-year.
Upon breaking down, the company's revenue from dividends stood at VND1.15 trillion (US$49.73 million), down 38% year-on-year, while that of from the sale of state capital doubled to VND401 billion (US$17.34 million).
Additionally, SCIC's revenue from deposit interests and bond investment amounted to VND731 billion (US$31.61 million), up 23% year-on-year.
By the end of the second quarter, SCIC saw a reduction in total assets value by VND20 trillion (US$865 million) compared to the beginning of the year to VND41.75 trillion (US$1.8 billion). This was due to SCIC handing over VND17 trillion (US$735.37 million) from the Support Fund for Enterprise Reorganization and Development to the Ministry of Finance (MoF).
This resulted in the company’s payables decreased by over VND20 trillion (US$865 million) during this period compared to the end of 2017 to over VND1.46 trillion (US$63.14 million).
SCIC currently has VND419 billion (US$18.12 million) in cash and VND19.83 trillion (US$857.87 million) in bank deposits.
Under the government's divestment scheme in the 2017 - 2020 period, SCIC is expected to sell state capital at 62 state owned enterprises (SOEs) in 6 ministries and 16 provinces, totaling VND11.2 trillion (US$484.35 million).
However, by the end of June, SCIC has just been handed over 25 SOEs under the list with capital of VND862 billion (US$37.27 million).
SCIC sets revenue target of VND7.9 trillion (US$341.62 million) and after-tax profit of over VND5.4 trillion (US$233.51 million) for 2018.
First IT Park in Binh Dinh to operate by 2021
A groundbreaking ceremony of the TMA Binh Dinh Information Technology (IT) Park was organized on August 28 in Quy Nhon City in the central province of Binh Dinh.
The park, located on an area of 15ha in Quy Hoa science and education urban area in Quy Nhon City, consists of a center for producing and exporting software, a center for research and application, a center for data science, a center for artificial intelligence and a center for application of Internet of the Universe.
Chairman of the TMA company Nguyen Huu Le said that the construction will be launched in two phases and the park will come into operation after three years.
After 15 years of operation, the park is expected to attract 3,000 high-quality laborers.
TMA is the first software company investing in Quy Hoa, the site set to become Viet Nam’s first science and technology urban area.
Secretary of Binh Dinh Province’s Party Committee Nguyen Thanh Tung supposed that the park will create a force for the province to enter the fourth industrial revolution, adding that the investment and production of software and artificial intelligence products are regarded as the right move taken by the province in the upcoming time.
First pharmaceutical company in HCMC certified science-technology business
The Ho Chi Minh City (HCMC) Department of Science and Technology granted certificate of science – technology business for Saigon Vietnam Pharmaceutical Joint Stock Co. (Savipharm) yesterday. This is the first pharmaceutical enterprise in HCMC to receive the certificate.
Reports from the HCMC Department of Science and Technology have shown that Savipharm is the pioneer to successfully apply information technology into managing research & development as well as manufacturing activities.
Until now, the company has commercialized 219 medicines in 11 groups. Its manufacturing plant has also received the Good Manufacturing Practice Certificate (GMP) from the Pharmaceuticals and Medical Devices Agency (PMDA) under the Japanese Ministry of Health twice.
Thanks to being a science – technology business, Savipharm will receive benefits such as having business tax exemption in 4 years, a 50 percent discount of this tax in the next 9 years, and only pay a 10-percent business tax in 15 years since the day it gains revenues from science – technology activities.
According to Mr. Nguyen Viet Dung, Director of the HCMC Department of Science and Technology, Savipharm is a good model for many companies in HCMC in general, and pharmaceutical ones in particular, to invest into the transformation to a science – technology business. This is expected to further boost the formation of an innovative ecosystem in the city.
Vietnam saw the establishment of 87,448 new enterprises in the first eight months of 2018, with a total capital of more than VND878 trillion (US$37.8 billion), up 2.4% in the number of enterprises and 6.9% in capital.
These new companies were expected to create 734,000 jobs, down 10% against the same period in 2017.
The total capital poured into the Vietnamese economy would be VND2.5 quadrillion (US$107.5 billion), if an additional VND1.6 quadrillion that has been pledged by existing enterprises were taken into account.
The first eight months of 2018 also saw 20,942 enterprises return to business, up 9.3% compared with the same period last year.
Meanwhile, the number of enterprises completing dissolution procedures in the past eight months was 9,135, of which more than 91% have a capital size of less than VND10 billion (US$430,000).
Exports of cement have exceeded the set target for the whole year, according to the Construction Material Department under the Ministry of Construction.
It is notable that despite just eight months of 2018 having passed, the export volume of cement has reached more than 20 million tonnes, exceeding the set target for the whole year (from 18-19 million tonnes).
With steady growth, the consumption target of 65-66 million tonnes in the domestic market is also likely to be met soon, signaling a bright spot in the cement market.
The latest statistics show that consumption of cement products in the first eight months of 2018 reached about 63.85 million tonnes, up nearly 30% over the same period of last year and nearly 76% of the set plan for the whole year.
Cement consumption in both domestic and export markets in August was estimated at 7.66 million tonnes, with domestic consumption accounting for 5.65 million tonnes and exports about 2.01 million tonnes.
Consumption of cement fell slightly this month compared with July, yet still maintained its steady growth compared to the same period in 2017. August’s consumption of cement products in the domestic market decreased by 0.25 million tonnes against July but still increased by 3% over the same period of 2017.
In the export market, results were more impressive as cement output in August dropped slightly by 0.09 million tonnes compared to July, but increased by 44% over the same period in 2017.
For the first eight months of 2018, cement consumption in both domestic and export markets was estimated at 63.85 million tonnes, up 30% from the same period last year and reached 76% of the plan for the whole year. Of this, domestic consumption was estimated at 43.76 million tonnes and exports 20.09 million tonnes.
The Sansiri Public Company Ltd, one of Thailand’s leading full-service real estate developers, is setting its footstep into Vietnam and has announced an exclusive strategic partnership with the one-stop real estate agent Denzell Vietnam.
With the announcement comes the official launch of Denzell Vietnam’s first sales gallery opening, in Ho Chi Minh City, allowing Vietnam-based clients to invest in international real estate and easily gain access to Sansiri’s prominent projects in the most attractive holiday resort areas in Thailand, including Hua Hin, Phuket, Pattaya, Chiang Mai, and Bangkok, with comprehensive after-sales services.
Sansiri increased its sales revenue in overseas markets to $279 million in 2017, and in 2018 laid out an aggressive plan to introduce 31 new projects worth $1.03 billion and a sales target of $815.6 million. With Denzell Vietnam’s sales gallery launch, potential investors in Vietnam won’t need to go to Thailand to purchase properties.
Sansiri has paid close attention to Ho Chi Minh City, where the real estate landscape showcases a market in near-perfect balance and Vietnam as one of the most attractive overseas markets for international business. Following Sansiri’s successful sales gallery launches in key markets like China, Singapore and Hong Kong, Ho Chi Minh City is the sixth international point of sales launched to strengthen its brand presence and to deliver a comprehensive full-service experience for its customers.
“With the rise of interest in Thai property in Asia-Pacific and the strategic partnership with Denzell Vietnam, we want to further build on our success in Ho Chi Minh City as Thailand’s leading developer,” said Mr. Apichart Chutrakul, CEO of Sansiri. “Our partnership with Denzell Vietnam is our commitment to providing strong after-sales support to our clients through a dedicated team and to better understand our evolving customer needs. In the long-term, Sansiri is well-placed to realize its vision of creating a leading portfolio and deliver next-generation living experiences to our customers.”
“The Vietnamese Government rolling out plans to equitize many State-owned enterprises and fast-growing private equity investments in Vietnam have made it one of the fastest growing economies in Asia, with a 7.38 per cent increase in GDP year-on-year in the first quarter of 2018.” said Mr. Apichart.
Thailand welcomed a total of 35 million visitors last year, according to the Tourism Authority of Thailand, of which 867,712 were Vietnamese, up 12.5 per cent year-on-year, who generated an estimated $816 million in tourism revenue for the country, showing the interest Vietnamese have in visiting their neighbor.
“The Denzell Vietnam sales gallery is located in the city’s CBD,” said Mr. Kingston Lai, CEO of Denzell Vietnam. “Denzell Vietnam will be the only distribution agency authorized to offer Sansiri’s property projects to Vietnamese buyers. That also means that Vietnam-based buyers can now preview Sansiri’s latest projects on the same launch date with other international sales offices like Hong Kong, China and Singapore.”
CapitaLand acquires new residential site in HCMC
CapitaLand announced on August 30 it has acquired a prime site in Ho Chi Minh City for $59.3 million and will build its 13th residential development in Vietnam on the 6-ha site. The development is expected to yield more than 100 landed residential units, targeted for completion by 2021. This is CapitaLand’s third acquisition within a month as it actively replenishes its land bank and strengthens its foothold in high-growth developed and emerging markets.
The target site is in Binh Trung Dong ward in fast-growing District 2, where amenities such as international schools, shopping malls, supermarkets, and food and beverage outlets are aplenty. It is next to Ring Road No. 2 and 6 km from Phu My Bridge, providing convenient access to various key destinations. When completed, these will further enhance the connectivity of the area.
“We are pleased to bag another highly-coveted site in Vietnam, where our ninth residential development in the fast-growing District 2 of Ho Chi Minh City will be built,” said Mr. Lim Ming Yan, CapitaLand’s President & Group CEO.
“Strong economic development, rapid urbanization, and rising affluence continue to fuel demand for quality residential developments in the country. CapitaLand has been seeing year-on-year growth in our Vietnam home sales, which are continually contributing to the Group’s earnings. As at the end of June, 93 per cent of CapitaLand’s launched residential units in Vietnam have been sold. We expect to hand over more than 30 per cent of the 2,680 units in Vietnam that have been sold in the second half of 2018.”
“It is in line with our strategy to reconstitute our portfolio by deploying capital gain into higher yielding assets in high-growth markets such as Vietnam. CapitaLand will continue with our disciplined investment approach to build a sustainable residential pipeline, while ensuring an optimal mix between trading and investment properties, as well as a balanced allocation between emerging markets and developed markets.”
“D2eight, our first landed residential development in Vietnam, was sold out within a day of its launch in April,” said Mr. Chen Lian Pang, CEO of CapitaLand Vietnam. “This demonstrates customers’ confidence in CapitaLand’s projects and underscores the robust demand for quality landed residential properties in the market.”
“Our acquisition of this site for landed development is therefore a strategic and timely addition to our residential pipeline. Given the site’s location and connectivity, coupled with CapitaLand’s building expertise and experience, we are confident that the landed development will appeal to homebuyers and investors seeking international quality, well-designed homes with good potential for capital appreciation.”
Vietnam is the third-largest market of CapitaLand in Southeast Asia, after Singapore and Malaysia. In March, it announced a joint venture to develop a 0.9-ha site in Tay Ho district in Hanoi into an integrated development, catering to the need for vibrant live-work-play spaces. This latest acquisition will add to CapitaLand’s existing $806-million portfolio in Vietnam.
The London-based Storm Capital Partners is seeking to invest in northern Hai Phong city and met with the city’s People’s Committee on August 29.
Mr. Paal Utvik, Chairman of the Group, introduced to city leaders its plan to build a $500-600 million floating power plant with liquefied gas solution technology. Production capacity is estimated at 450-600 MW.
The floating power plant meets safety criteria, is of low cost, has a low electricity sale price, and meets requirements on environmental protection.
Mr. Nguyen Van Tung, Chairman of the Hai Phong City People’s Committee, welcomed Storm Capital Partners to work with the city and emphasized that “Hai Phong is a seaport city, the largest gateway in the north, and an industrial and logistics center. It will build two more deep-water ports in Lach Huyen in the island district of Cat Hai to promote trade, in line with the construction of the Group’s floating power plant.”
Its technology is modest in the world so the city will support the group to research and invest in the floating power plant.
Approval is now required from the government and ministries. As the Group has decided to invest in Hai Phong, city leaders will propose the project to the government and ministries. If approval is forthcoming, city leaders will assign specific units to assist the Group in terms of investment procedures.
Mr. Tung also asked the Group to continue researching the construction of warehousing logistics and a liquid cargo port.
Storm Capital Partners specializes in major industries such as oil and gas, energy, banking and finance, shipbuilding, and marine shipping. It has branches in Oslo, Shanghai, Singapore, Manila and Rio De Janeiro.
As at August 20, Hai Phong had attracted $16.48 billion worth of FDI in 660 projects, according to the Foreign Investment Agency at the Ministry of Planning and Investment.
Developing digital financial services for a non-cash society
VNPT-Media and VietBank have just signed an agreement to co-operate in a number of fields to expand their networks and roll out new products.
To catch up with the global development trend and the government’s policies on Industry 4.0, Vietnam Posts and Telecommunications Group (VNPT) has transformed itself into a digital services provider from its original telecommunications services. The group targets to become the leading digital services provider in Vietnam.
In order to implement this target, digital financial and fintech service (DFS) is one of the four major pillars that VNPT will focus on. One year ago, VNPT-Media Corporation, a subsidiary of VNPT, was granted the certificate to operate intermediate payments and released a number of services, including e-payments, bill payments, and e-wallet on the vnptpay.vn system. This marked VNPT’s entry into e-payment, one of the most potential digital services in the 4.0 era.
Yesterday, on August 28, VNPT-Media and VietBank (Vietnam Thuong Tin Commercial Joint Stock Bank), a subsidiary of Hoa Lam Group, have just signed a co-operation agreement in the fields of healthcare, pharmaceuticals, finance-banking, and investment. This co-operation will create comfortable services and products, along with increasing benefits for customers, to further a non-cash society.
Accordingly, VietBank’s clients could easily pay online for train/air tickets, shopping, and invoices, among others. VietBank was evaluated as on of the most stable and best performing banks in Vietnam, and the two sides will develop other services, such as credit scoring and credit loans, based on their data and technology foundations.
Huynh Quang Liem, deputy general director of VNPT cum chairman of VNPT-Media, confirmed: “Based on the two sides’ large customer base and wide sales network, this co-operation will surely increase the performance of our operations as well as contribute to the development of the digital economy.”
Nguyen Thanh Nhung, VietBank’s general director said: “VietBank serves hundreds of thousands of clients and has tight regulations, experience in risk management, great liquidity, and anti-money laundering measures in place. In collaboration with VNPT-Media, we will use all of our advantages to expand the distribution network, strengthen the multi-faceted co-operation, and benefit both sides.”
Sojitz continues its M&A spending spree in Vietnam
Japan’s Sojitz Corporation has become the newest aggressive buyer in Vietnam’s mergers and acquisitions scene, with a planned stake acquisition in PAN Group, reflecting Japanese investors’ quest to take over major Vietnamese companies before their Asian peers can.
PAN Group last week revealed its plan to offload 14.86 million shares, equal to an 11 per cent stake, to Sojitz Corporation. If the plan gets the green light from shareholders, Sojitz will become a major shareholder and strategic partner of PAN Group.
Under the plan, PAN Group proposed a minimum selling price of VND55,000 ($2.43) a share. The transaction is expected to be completed in either the third or the fourth quarter. Established in 1998, PAN Group has become one of the leading agricultural companies in Vietnam, with total assets of VND7.6 trillion ($336.3 million).
Meanwhile, Sojitz has established a strong presence in Vietnam’s farming and food business. It started with Japan Vietnam Fertilizer Company in 1998. Interflour Vietnam Limited, in which Sojitz has an investment stake, is also engaged in the import of food and feed as well as the flour milling business.
Sojitz has been on an acquisition spree in Vietnam in recent years. In June, Sojitz completed the acquisition of a 95.24 per cent stake in Saigon Paper Corporation for $91.2 million, known as the biggest deal in the domestic paper industry so far. The latter is one of Vietnam’s largest paper manufacturers, with an annual output of 40,000 tonnes of household paper and 230,000 tonnes of industrial paper.
Last December, Sojitz Planet, the plastics division of Sojitz, entered into a strategic partnership with Vietnamese plastics producer Rang Dong Plastic JSC when Rang Dong sold a 20 per cent stake in its subsidiary Rang Dong Long An Plastic JSC, in the southern province of Long An, to Sojitz Planet.
Besides, Sojitz also penetrated into Vietnam’s retail market in 2015 by teaming up with Ministop Co., Ltd. to expand the latter’s convenience store business. It also joined forces with New Land Co., Ltd. and other partners to build a four-temperature cold-chain logistics business in Vietnam.
Sojitz’s acquisition spree reflects the growing enthusiasm among Japanese investors to enter the domestic market via mergers and acquisitions (M&A). According to Masataka Sam Yoshida, managing director of Recof Corporation, which provides services in the entire process of M&A transactions, Japanese investors are aware of the competition for Vietnamese companies among Asian buyers. This sense of urgency has prompted Japanese investors to act more quickly and offer better prices in recent M&A deals.
“Japanese corporations believe that they need to invest more in the ASEAN region, and Vietnam is one of the most attractive destinations,” Yoshida said. “They’re also aware that they’re competing against buyers from South Korea, Singapore, and Thailand.”
Power industry expo in HCM City attracts 180 exhibitors
More than 180 exhibitors from 22 countries and territories will display their latest products and services at the Electric & Power Vietnam, an international power generation, transmission, distribution and renewable energy exhibition, in HCM City next month.
The seventh edition of the biennial exhibition will also feature six international group pavilions of India, Germany, Taiwan, South Korea, Turkey, and mainland China, BT Tee, general manager of UBM VES, the exhibition organiser, said.
It will showcase a wide range of advanced power engineering technologies, monitoring and measuring equipment, renewable energy technologies, energy storage saving solutions, production and process automation systems, SCADA, electrical distribution and transmission equipment, power station hardware and equipment and others.
Participating will be well-known names such as 3M, Aksa Power Generation, Ablerex Electronics, Motwane, Fuji CAC, Haintec, Legnano Teknoelectric, Rittal LLC, Trinity Touch, and Song La Technical Equipment Co., Ltd.
Held alongside will be Renewable Energy Vietnam, an expo showcasing optimal solar energy solutions from popular brands like Chinaland Solar Energy, Mibet Energy, Goodwe, Toshiba, HT Solar, and Vietnam Sunenergy (VSUN).
Many conferences and seminars will also be held on the sidelines of the exhibitions, including one on “Solutions to Encourage and Develop Renewable Energy in Viet Nam.”
Tee said Viet Nam’s electricity demand is expected to grow at 10-12 per cent annually through 2020 as industrial and residential use increases.
The high growth rate is putting pressure on the power infrastructure, he said.
As demand increases and as the electricity grid expands, there is a pressing need to improve distribution efficiency through better grid management technologies (smart grid) and hardware, he said.
To be held at the Saigon Exhibition and Convention Centre from September 12 to 14, the exhibitions are expected to attract 5,000 professional visitors.
Since its launch in 2006 Electric and Power Vietnam has gradually expanded to become Viet Nam’s most important electric power trade event.
Yeah1 Group announces 2:1 bonus issue
Media network Yeah1 Group (YEG) has announced a two-for-bonus issue subject to approval at the annual general meeting.
YEG said its business continued to perform well and the company is on track to achieving its financial targets for the year.
In the first half of this fiscal year, its revenues grew 117.3 per cent year-on-year to VND679 billion (US$29.7 million).
It has sought approval from the State Securities Commission to remove its foreign ownership limit, which stands at 49 per cent.
This will enable it to get additional foreign investment.
Yeah1 Group was founded in 2006 and has grown across verticals and media channels.
It is now aggressively expanding into the region and beyond for its digital ambitions.
It has several successful divisions, leveraging on its massive community to build on its movie, television, digital and publishing business.
Yeah1 Group is Viet Nam’s first public listed media company and has a valuation of $400 million.
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