Sabeco plans $41m cash dividend in October     

Sai Gon Beer-Alcohol-Beverage Corporation (Sabeco) will advance shareholders a cash dividend of 15 per cent next month, the company has announced.

This is the first-phase payout of its plan for a total 35 per cent dividend rate for this year.

Sabeco is expected to spend over VND961 billion (US$41.2 million) on this payout, which will take place on October 31.

The ex-dividend date (the day which a stock trades without the upcoming dividend attached to the shares) is October 17.

The second dividend payout of another 20 per cent will be made in December.

In 2018, Sabeco targets a net profit of VND4 trillion, down 19 per cent from 2017. In the first six months of 2018, the brewer reported revenue of VND17.1 trillion, fulfilling 47.3 per cent of its plan.

Its after-tax profit reached VND2.45 trillion, equivalent to 61 per cent of the goal set for the whole year.

The company has recently shaken up its management personnel. Last week, it appointed Hoang Dao Hiep, 45, as the deputy general director in charge of marketing. It also appointed Tran Nguyen Trung as its new chief accountant.

Its shares, coded SAB on the Ho Chi Minh Stock Exchange, have lost 12.2 per cent this year, ending September 26 at VND218,900 ($9.40) a share, but were still the second most expensive on the securities market. 

District calls for land transaction ban to be lifted as property rush cools     

The People’s Committee in Khanh Hoa Province’s Van Ninh District has asked provincial authorities to lift a ban on land transactions in the district.

Land use right transfers, conversion of land use purposes and land splits have been banned in the district since May to prevent a land fever caused by speculation of the district developing the Bac Van Phong Special Administrative – Economic Zone that would make land very profitable.

At the time, the draft Law on Special Administrative – Economic Zones was being discussed and was expected to be passed, in which three special zones would be developed with preferential policies to attract investments, including Bac Van Phong (Khanh Hoa Province), Van Don (Quang Ninh Province) and Phu Quoc (Kien Giang Province).

The National Assembly then decided to delay passing the law to the sixth meeting of the 14th National Assembly which is scheduled at the end of this year because the draft law needed more discussions and revisions.

The district’s People Committee said that management of land in the district had been brought under control and the property fever had cooled.

The district asked the provincial People’s Committee and the Department of Natural Resources and Environment to allow land transactions to resume.

In the first three months of this year when the land fever peaked, the district received and handled nearly 2,260 land transactions. 

MoF boosts Industry 4.0 use
     
The Ministry of Finance will apply the technological achievements of the fourth industrial revolution (Industry 4.0) to build a smart governance foundation, provide financial services and participate in the development of digital economy.

There are the goals of the ministry’s Resolution 02-NQ/BCSD on the application of the 4.0 industrial revolution’s technology in the fields of finance and budgeting, said Deputy Minister of Finance Vu Thi Mai at the Viet Nam Finance Conference and Expo 2018 held in Ha Noi on Wednesday.

“The ministry will complete work to build e-finance and establish a modern, sustainable, open and transparent digital financial platform based on big data, open financial data and the digital financial ecosystem, meeting the demands of public financial transactions and the needs to use the digital information of the Government, people, enterprises and organisations,” said Mai.

Mai said the meeting would be a good forum for State bodies, researchers and the business community to discuss the financial industry’s requirements in implementing the Industry 4.0, e-government and digital transformation.

“Through this, domestic and international businesses and organisations can capture information on the financial sector deployment plan, thereby recommending technology, experience and best practices to the ministry,” she said.

According to Mai, Industry 4.0 brings many opportunities but also challenges to countries, especially developing countries like Viet Nam, in applying digital technology, intelligent technology and new production and business solutions to promote the economy.

In order to take advantage of opportunities and minimise challenges from Industry 4.0, Mai said Viet Nam should promulgate synchronous mechanisms and policies for the development of industries and fields related to Industry 4.0.

“The tax and financial policy system plays an important role in mobilising, allocating resources and assisting enterprises, organisations and individuals to participate in the Industry 4.0, as well as applying scientific and technological advances to develop production and business, contributing to economic growth,” said Mai.

Deputy Minister of Information and Communications Nguyen Thanh Hung said the digital transformation would take place in a way that is "not smooth". The challenge for digital transformation in Viet Nam would be resources and skills, culture and perception, security and network security.

“No matter whether Viet Nam conducts the digital transformation, when the Industry 4.0 arrives, the country will certainly be affected,” said Hung.

The conference has become a prestigious information technology forum in the field of public finance held annually since 2004. The event this year introduced the roadmap for investment and implementation of the digital transformation of the financial sector. It also exchanged experience and applied advanced technology solutions of Viet Nam and foreign countries, contributing to strengthening effectiveness and transparency in financial management, and moving towards an advanced and modern digital economy.

The conference consisted of one plenary session and three thematic sessions including digital transformation in the State Treasury, customs sector and taxation. In addition, the exhibition area provided real-world experiences on modern IT models, products and solutions to help advance the process of building the digital economy. 

Binh Thuan dragon fruit promoted in India
     
A promotional event was held in New Delhi, India on September 25 to advertise dragon fruit from the south central province of Binh Thuan in an effort to expand ties between agricultural exporters from Viet Nam and India.

Addressing the event, Vietnamese Ambassador to India Ton Sinh Thanh briefed attendees on Viet Nam and the advantages Binh Thuan holds in tourism and agriculture. He said he expected promotional events to further trade relations between the two countries.

Through the event, the Binh Thuan Department of Industry and Trade hopes to introduce and promote dragon fruit, one of the province’s key earners in India, and provide a platform for businesses from both sides to meet, director of the Binh Thuan Department of Industry and Trade Do Minh Kinh said.

During the visit to India, officials from Binh Thuan are also scheduled to meet with the Trade Promotion Council of India and Reliance Retail Limited, a leading retailer. They will attend an international food and beverage trade show in Mumbai and hold another promotional event for dragon fruit at Sofitel Mumbai BKC hotel.

Dragon fruit is an agriculture staple in Viet Nam, with Binh Thuan home to more than 27,000 hectares of orchards.

Dragon fruit dominated Vietnamese fruit exports in the first four months of 2018, with total exports reaching US$427 million, a year-on-year increase of 9 per cent.

According to the General Department of Viet Nam Customs, dragon fruit accounted for 32 per cent of Vietnamese fruit and vegetable exports. Revenue from dragon fruit exports was nearly four times higher than the two fruit exports ranked below it – longan, which had an export value of $121 million, and mangoes, whose export value stood at $104 million.

Binh Thuan produces more than 600,000 tonnes of dragon fruit annually, making it the country’s largest trading hub of the fruit. Its fruit is shipped to more than 16 countries and territories.

As of late 2017, the province boasted more than 9,500 hectares of dragon fruit farms operating under the Vietnamese Good Agricultural Practice (VietGAP) standards. It is striving to add 300 more hectares this year. – VNS
Vietnam sees strong growth in aquatic exports to US

Vietnam enjoyed a surge of 46 percent in aquatic products’ export value to the US market in August to 188.7 million USD, pushing the total revenue in the first eight months of this year to 982.9 million USD, up 7 percent over the same period last year.

According to the Import-Export Department under the Ministry of Industry and Trade, in the rest of the year, aquatic exports to the market will see good growth, especially shrimp.

The department noted that the US Department of Commerce has announced the results of the 12th Period of Review on shrimp imports from Vietnam, according to which anti-dumping tariff on the product are reduced to 4.58 percent from 25.39 percent.

After slow growth in June and July, export revenue of aquatic products in August recovered to 5.59 billion USD, up 7.8 percent over the same period last year.

The Vietnam Association of Seafood Exporters and Producers (VASEP) predicted that export revenue of aquatic products is likely to hit 2.7 billion USD in the third quarter, a 13 percent rise year-on-year.

ADB adjusts down forecast for Vietnam’s growth in 2018

The Asian Development Bank (ADB) has projected Vietnam will grow 6.9 percent this year, lower than its previous forecast of 7.1 percent made in April.

The bank attributed the lower forecast growth rate to expectations that local exports, agriculture, construction, and mining will moderate in the second half of the year. 

The bank, meanwhile, retains the 2019 growth forecast for Vietnam at 6.8 percent.

According to ADB’s recent press release, Vietnam’s economic growth is likely to hold up well in the near term thanked to resilient domestic demand, improved business conditions, and stable macroeconomic environment. An anticipated increase in public capital expenditure in the second half of the year is expected to boost investment growth.

The economy, however, remains vulnerable to external and domestic challenges. Growth moderation in the major economies such as China, European Union, and Japan may dampen aggregated demand of global trade. The escalating trade frictions around the world could adversely impact the export performance and FDI inflows to Vietnam. Inflationary pressure is likely to persist over the near term because of an increase in international oil prices and an upsurge in food prices.

As such, ADB has revised forecast for local inflation rate to 4.0 percent in 2018 and 4.5 percent in 2019, up from the April estimates of 3.7 percent and 4.0 percent, respectively.

Vietnam Tourism Roadshow held in Indonesia

Foreign tourists visit Hoi An ancient town - a tourist attraction in Vietnam

A Vietnam Tourism Roadshow was held in Bandung, Indonesia on September 26 with the aim to promote the image of Vietnam to Indonesians.

The event was part of the programme held from September 23-29 to introduce a friendly and attractive Vietnam to ASEAN member states, focusing on the Philippines, Indonesia and Malaysia.

It attracted the participation of over 100 delegates representing Indonesia’s travel agents and enterprises operating in the hospitality industry and international airlines.

Speaking at the event, Ngo Hoai Chung, deputy head of the Vietnam National Administration of Tourism, said that Vietnam is not only one of the fastest developing economies in Southeast Asia with an average annual growth rate of 7 percent, but also an attractive destination which welcomed 13 million foreign tourists in 2017.

Last year, Vietnam was ranked sixth in Top 10 fastest-growing tourist destinations by the United Nations World Tourism Organisation (UNWTO). 

Recently, the country was honoured as a leading tourist destination in Asia in the World Travel Awards (WTA) 2018, Chung said.

He stressed the Roadshow is designed to introduce Vietnam’s tourism products, tourist attractions and opportunities to invest in the Vietnamese market.

It was also a venue for Vietnamese and Indonesian tourism managers and businesses to meet and discuss cooperation opportunities, he added.

Participants in the event were introduced to the beauty of Vietnamese land and people through video clips and art performances.

Forum promotes digital connectivity amid 4th Industrial Revolution

The acceptance of transition in multinational corporations' production chain could turn Vietnam into a leading centre in the region for manufacturing telecommunication and IT devices, and those using internet of things (IoT), said Deputy Minister of Information and Communications Phan Tam on September 27. 

In his speech at the Vietnam ICT Investment Forum (VIIF) in Hanoi, Tam stressed the need for Vietnam to focus on developing domestic telecommunications industry and IT, and promoting foreign direct investment (FDI) attraction to the field. 

The top priority should be given to encouraging digital infrastructure development, including broadband and database infrastructure; completing 4G mobile network, and deploying 5G, towards meeting the requirements of IoT development in the time to come. 

In addition, in order to participate in the Fourth Industrial Revolution, Vietnam needs to develop human resources and promote digital skill training so that workers are equipped with skills that enable them to meet future work requirements, Tam added. 

The ministry has proposed the Government to devise priority policies to meet and create momentum for the transformation of economic, industrial and service sectors, he noted.

Addressing the event, Deputy Minister of Communication of India Ravi Kant emphasized the desire to promote cooperation between India and ASEAN member countries, including Vietnam, to expand its IT exports.

India is interested in developing sustainable infrastructure and digital innovation, taking full advantage of qualified IT human resources who are capable of working in many markets around the world, he said. 

Meanwhile, Swedish Ambassador Pereric Hogberg shared the country’s experience in the use of IT, innovation and digital services in urban and rural areas to make it one of the leading technology countries in the world. 

Participants at the forum also shared information on emerging technology issues in the world such as 5G technology, solutions related to cloud computing, initiatives and digital connection projects among ASEAN countries, and measures for ensuring information security for digital connection.

The forum showed the importance of digital connectivity in the Fourth Industry Revolution, contributing to encouraging Vietnamese enterprises to foster investment cooperation with peers in countries in the Mekong-sub region and Southeast Asia in the field. 

On the sidelines of the event, the exhibition “India-ASEAN ICT Expo” is being held on September 27-28, featuring products from 30 Vietnamese and Indian IT and telecom enterprises. The exhibitors introduce products, services, telecommunication and IT solutions with the application of IoT in traffic management, agriculture and banking serving the development of smart cities. 

In recent years, the Vietnamese Government has determined to build visions, orientations and policies in all sectors to fully tap the advantages of the Fourth Industry Revolution

FDI disbursement up 6 percent in nine months

Disbursement of foreign direct investment (FDI) in the first nine months of this year experienced a modest increase of 6 percent to 13.25 billion USD compared to the same period last year. 

During that time, FDI commitments totaled 25.37 billion USD, almost equivalent to the same period last year, statistics from the Foreign Investment Agency (FIA) revealed. 

Up to 2,182 new projects were licensed with a total registered capital of 14.1 billion USD between January and September, down 3 percent year-on-year, while 841 existing projects were given an additional 5.5 billion USD, a reduction of 18 percent compared to the same period of last year. 

Meanwhile 5,275 other projects had 5.7 billion USD in capital contributed by foreign investors, surging 37 percent year-on-year. 

Large-scale projects included the Japanese-invested smart city in the capital’s Dong Anh District worth over 4.13 billion USD; the 1.2-billion USD polypropylene manufacturing plant financed by Hyosung Corporation from the Republic of Korea in the southern province of Ba Ria - Vung Tau; the Laguna hospitality project with an additional fund of 1.12 billion USD from Singaporean investors. 

Others were the 600 million USD Lotte Mall Hanoi project that includes a hotel, apartments, offices, and trade center complex and the LG Innotek Hai Phong facility with additional capital of 501 million US for manufacturing camera modules. 

As per the data, manufacturing and processing continued to lure the lion’s share of investment with 11.3 billion USD, accounting for nearly 45 percent of the nation’s total FDI. Real estate came second with 5.8 billion USD, or equivalent to 23 percent of total registered capital, followed by retail and wholesale with 2.1 billion USD or 8.3 percent. 

The data also showed 104 countries and territories invested in Vietnam in the nine-month period. Among them, Japan ranked first with 7 billion USD, making up 28 percent of total investment. The RoK and Singapore come second and third with 5.6 billion USD or 23 percent and 3.6 billion USD or 15 percent, respectively. 

The capital remained the most attractive investment destination to foreign investors, with 5.8 billion USD, or 23 percent of total FDI. It was followed by HCM City with 4.2 billion USD or 17 percent and Ba Ria - Vung Tau with 2.1 billion USD or 8.5 percent. 

As of September 20, the country had 26,646 valid foreign-invested projects with total registered capital of 334 billion USD, and over half of the FDI had been disbursed, the agency noted.

Vietnam’s overseas investment reaches 331 million USD in 9 months

Vietnamese businesses injected 331 million USD into 122 projects abroad in the first nine months of this year, the Foreign Investment Agency reported. 

According to the agency’s statistics, 286 million USD was pumped into 99 new overseas projects, while the rest was earmarked for 23 existing ones.

As per the data, finance-banking attracted the most interest from Vietnamese investors, accounting for 32 percent of their total, or 106 million USD. 

Agro-forestry-fisheries came next with 64 million USD (19.2 percent), followed by manufacturing and processing with 46 million USD (14 percent) and others.

Vietnamese businesses invested in 30 countries and territories in the period with Laos taking the lead with 95.1 million USD or 29 percent. Australia came next with 46.7 million USD or 14 percent and Slovakia was third with 35.9 million USD or 11 percent.

Ceramic exports to Argentina surge

Vietnam pocketed 32.1 million USD from exporting ceramic products to Argentina in August, up 2.4 percent against that of July, according to statistics of the Vietnam Customs.

Along with ceramics, Vietnam also ships footwear, garment and textiles and apparel materials to Argentina.

In the first eight months of this year, Vietnam’s exports to the South American country were valued at 309.9 million USD, up 6.54 percent year-on-year.

In the January-August period, the structure of exported goods had a change. If the export of rubber posted a strong growth in the first eight months of 2017, it was the ceramic sector that developed quickly in terms of export in the same period of this year.

Bilateral trade between Vietnam and Argentina increased to 3 billion USD in 2017, with Argentina’s exports to Vietnam reaching 2.5 billion USD.

Forestry exports estimated at 6.64 billion USD in nine months

Export revenue of forestry products between January and September is estimated to surge 14 percent year on year to 6.64 billion USD, accounting for 23 percent of Vietnam’s total agro-forestry-fishery shipments.

According to the Vietnam Administration of Forestry under the Ministry of Agriculture and Rural Development, the trade surplus of main forestry products is estimated at 4.97 billion USD, with 4.64 billion USD contributed by export of wooden products.

The US, Japan, the EU, China and the Republic of Korea (RoK) remain the largest importers of Vietnamese forestry goods. Export revenue to those countries hit 5.17 billion USD, or 86.72 percent of total forestry export value.

Robust growth was seen in some traditional markets like China (6.5 percent), the EU (5 percent), Japan (10 percent), the RoK (52 percent) and the US (15.5 percent).

The administration said the country has planted 161,207 hectares of forest so far this year, up 7.5 percent from the same time in 2017 and 75.1 percent of the yearly plan.

As of September 20, the country had collected 1.79 trillion VND (76.97 million USD) from forest environment service fees, 77.2 percent of the yearly plan and up 76 percent from the same time last year.

Int’l textile-garment, footwear fairs slated for November

A series of international trade fairs for the garments and textiles, as well as footwear sectors are scheduled to take place at the Saigon Exhibition and Convention Centre in Ho Chi Minh City on November 21-24.

The events will be jointly held by the Vietnam National Trade Fair & Advertising Company (VINEXAD), the Yorkers Exhibition Service Vietnam, and the Guangdong Sewing Equipment Chamber of Commerce, among others, with the support of the Vietnam Cotton and Spinning Association (VCOSA), the HCM City Association of Garment and Textiles (AGTEK), and the China Sewing Machinery Association (CSMA).

VINEXAD Director Pham Dang Khanh said the trade shows include the 18th edition of the Vietnam International Textile & Garment Industry Exhibition (VTG 2018) and the Vietnam International Textile and Apparel Accessories Exhibition (VitaTex).

The Vietnam International Footwear Machinery & Material Industry Exhibition (VFM), and the eighth Asia International Dye, Pigments, and Textile Chemicals Exhibition (INTERDYE ASIA 2018) will also be held concurrently.

The events are expected to feature over 600 booths of more than 400 businesses from 11 countries and territories, including China, Germany, India, Japan, the Republic of Korea, and Malaysia.

The trade shows offer a chance for Vietnamese firms to connect with international garment firms, which will in turn consolidate Vietnam’s increasing position and role in the global market. 

Nguyen Van Khanh from the HCM City Leather and Footwear Association said that Vietnam’s garment-textile industry had one of the highest revenue and export value from around the world, ranking in the top five while raking in 16 billion USD in the first half of 2018, up 14 percent year-on-year.

The free trade agreement between Vietnam and the European Union (EU) is hoped to create a positive influence for the country’s garment-textile. In addition, the country has signed a number of agreements, notably the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which offer favourable conditions for the footwear sector.

Vietnam is home to some 700 footwear makers with about 1.5 million labourers. The country’s footwear exports have enjoyed robust growth, reaching 13 billion USD in six years from 6.5 billion USD in 2011. The figure is projected to hit 20 billion USD this year.

Vietnam’s garment-textile sector holds great potential thanks to positive signs in 2018 and benefits accessed through the recent trade agreements, said Nguyen Binh An, VCOSA Secretary General.

The ASEAN Economic Community will also bring cooperation opportunities for Vietnam to seek suitable suppliers and establish a supply chain to raise the country’s competitiveness in major markets of the US, the EU, and Japan, he added.
Thai-invested firm to build abattoir in Binh Dinh

The Thai-invested CP Vietnam Breeding JSC (CP Vietnam) will invest in a slaughter and processing plant in the central province of Binh Dinh under a memorandum of understanding (MoU) between the firm and local authorities. 

The MoU was signed between Chairman of the provincial People’s Committee Ho Quoc Dung and General Director of CP Vietnam Montri Suwanposri on September 26 in the presence of Thailand’s Consul General Ureerar Ratanaprukse. 

Montri Suwanposri said his firm had two food processing plants in Hanoi and the southern province of Dong Nai, adding that there are demands for the company to expand its production and business in the field in the central region of Vietnam, and that Binh Dinh is the best destination for that.

CP Vietnam has invested about 1 trillion VND (42.8 million USD) into Binh Dinh, mainly in producing animal feed, livestock, and garments and textiles.

According to the provincial Department of Agriculture and Rural Development, the locality’s livestock sector is developing with strength towards high-quality breeding. 

Currently, the province has nearly 1 million heads of cattle and 7.5 million heads of poultry.

However, Binh Dinh has no food processing plant. Therefore, the value of livestock products is low, with farmers facing considerable difficulties and risks.

At the signing ceremony, the department proposed to introduce four locations under the livestock development plan of the locality to 2020, making it easy for CP Vietnam to select its investment project. 

Chairman of the provincial People’s Committee Ho Quoc Dung said that investment for building a food processing plant is a pressing need of the locality at present. 

He pledged that the local authorities will create the most favourable conditions for CP Vietnam to implement the project.

CP Vietnam owns 7 percent of the pork market share, 16 percent of the industrial egg market share, 22 percent of the chicken market share, and 18 percent of animal feed.

Thai investors have been successful on the Vietnamese market thanks to their effective strategies.

More efforts needed to improve labour productivity

Vietnam can escape the middle income trap to achieve rapid and sustainable growth only by improving its labour productivity, heard a policy dialogue on September 26 in Hanoi.

The event was jointly held by the Vietnam Institute for Economic and Policy Research (VEPR) and German think tank Konrad Adenauer Stiftung (KAS).

Peter Girke, KAS Chief Representative in Vietnam, said that the Vietnamese economy has been developing continuously and gained notable achievements.

However, labour productivity has failed to achieve corresponding growth. Compared to many other nations in the region, Vietnam has a peculiar issue in terms of labour productivity, he added.

According to VEPR Director Nguyen Duc Thanh, in 2017, Vietnam’s labour productivity was twice as high as that of low income countries, equal to 50 percent of that of lower middle-income nations and only 18.3 percent of that of upper middle-income states.

The country’s labour productivity rose from 38.64 million VND (1,650 USD) per labourer in 2006 to 60.73 million VND (2,602 USD) per labourer last year, with an average yearly growth rate of 5.3 percent during the 2012-2017 period.

In 2015, Vietnam recorded the highest growth in terms of labour productivity, at 6.49 percent. However, compared with other countries in the region, labour productivity in almost all sectors was at the lowest levels.

Thanh said that labour productivity in manufacturing and processing remains low, which has a knock-on effect for the sustainable growth of the sector.

He stressed the need for more administrative and institutional reforms that can help raise labour productivity in order to achieve rapid and sustainable economic growth.

The director proposed that Vietnam build a movement to increase labour productivity like those seen in Japan, Singapore, and the Republic of Korea.

Le Van Hung from the Vietnam Institute of Economics (VIE) said that the foreign direct investment (FDI) sector holds an important role in raising labour productivity in the country.

To increase the sector’s contributions to labour productivity, it is necessary to pay attention to the quality of FDI capital instead of the quantity, and focus on developing the supporting industry, Hung stressed.

Vietnam raises another 3.8 trillion VND from G-bonds

The State Treasury of Vietnam raised an additional 3.8 trillion VND (163.4 million USD) by auctioning off Government bonds at the Hanoi Stock Exchange (HNX) on September 26.

The auction looked to sell 5 trillion VND (215 million USD) worth of G-bonds with 5-year, 10-year, 15-year and 20-year maturity.

Bonds with 10-year maturity raised 1.4 trillion VND (60.2 million USD) with an annual interest rate of 4.8 percent, 0.05 percent higher than the previous auction on September 19. A sub-session sale of the 10-

year bonds netted 600 billion VND (25.8 million USD) with a yield of 4.8 percent per year.

Seven bidders bought 1.2 trillion VND (51.6 million USD) worth of 15-year bonds with an annual yield rate of 5.07 percent, up 0.05 percent from that of the September 19 auction. Some 600 billion VND (25.8 

million USD) was mobilised from the sub-session, with an interest rate of 5.07 percent.

There were no successful bids for 5-year and 20-year bonds.

So far this year, the State Treasury of Vietnam has collected more than 121.76 trillion VND (5.23 billion USD) from auctions through the HNX.

Petrolimex expects to earn VND1 trillion from PGBank, HDBank merger

Vietnam National Petroleum Group (Petrolimex), which holds a 40% stake in Petrolimex Group Commercial Joint Stock Bank (PGBank), expects to generate VND1 trillion in profit from the merger of PGBank and HCMC Development Joint Stock Commercial Bank (HDBank), Nguoi Lao Dong newspaper reported, citing statements from Petrolimex Chairman Pham Van Thanh.

At a meeting today, September 25, between Petrolimex and the prime minister’s working group, Thanh said that the merger is expected to be completed by the end of this year.

On September 7, the State Bank of Vietnam gave its in-principle approval for the merger.

Within two months, HDBank must submit a formal application to the central bank to get approval for the merger, based on prevailing regulations.

In late April, shareholders of HDBank approved a plan to acquire the Hanoi-based PGBank under a share-swapping deal. Each share of PGBank will be converted into 0.621 of an HDBank share, while HDBank plans to issue 300 million new shares for the conversion.

Consultants propose reclaiming advance payment for massive antiflooding project

The consortium of construction supervision consultants for a VND10-trillion flood control project in HCMC has proposed the HCMC government take back over VND1.5 trillion advanced to the project investor, Trung Nam Group, Vietnamplus news website reported.

According to a HCMC Steering Center of the Urban Flood Control Program report sent to the municipal government, the consortium explained that the advance violates the law.

To consider the proposal of the consultants, the steering center held a meeting with representatives of the Departments of Agriculture and Rural Development, Construction and Planning-Investment and Trung Nam Group’s subsidiary Trung Nam BT 1547 Co., Ltd.

At the meeting, the subsidiary's representative confirmed that the advance payment was reasonable and in line with prevailing regulations, such as the Construction Law, the Government’s Decree 37/2015/ND-CP on detailed regulations on construction contracts requiring that the advanced amount not exceed 50% of the total investment in the project, and the build-transfer contract between the municipal government and Trung Nam Group.

The representative of the steering center echoed this view, stating that the consultants’ proposal was baseless. Trung Nam BT 1547 and Bank for Investment and Development of Vietnam (BIDV) will assume responsibility for disbursing and reclaiming the money.

The steering center’s representative added that the city government’s monthly confirmation of the project's workload was the basis on which BIDV would disburse the loan payments for the project, as noted in the credit agreement between the investor and the lender bank.

In addition, the payment for the investor is regulated in the contract between the municipal government and Trung Nam Group.

To ensure the effectiveness of the project, the HCMC government had assigned the steering center to sign a contract with the MVN-CMB-TL12 consulting consortium.

According to the consulting contract, the consortium is in charge of inspecting and assessing the progress of loan mobilization and disbursement for the project and the investor’s use of the capital.

Over time, the consortium has repeatedly reported violations by the investor, such as the use of Chinese steel that allegedly failed to meet the standards set by the HCMC government on some floodgates, adjustments to the design of the project and adjustments to the amount advanced to the contractors.

Cai Mep Ha container seaport projects approved

The Government Office has announced the final decision of Deputy Prime Minister Trinh Dinh Dung approving the project to build the Cai Mep Ha logistics center and a general cargo and container seaport in Phu My Town, Ba Ria-Vung Tau Province.

The provincial government was assigned to direct the Hanoi Export-Import Corporation, also known as Geleximco Group, to conduct essential procedures to build the Cai Mep Ha logistics center, meeting the demand for socioeconomic development of Ba Ria-Vung Tau and the southern key economic region.

For the Cai Mep Ha general cargo and container terminal project, Geleximco is expected to work with Vung Tau Shipbuilding and Oil Gas Services JSC, also known as Vung Tau Shipyard, the previous main investor in the project, to establish cooperation in funding and launching the seaport.

In addition, the deputy prime minister assigned the provincial government to guide the relevant enterprises on developing their projects in full compliance with prevailing regulations in terms of management, land use, land compensation and relocation. The local government must also inspect and appraise the projects within its authority.

In related news, Prime Minister Nguyen Xuan Phuc at a meeting on project investment in Lach Huyen, Haiphong City, said the adjusted plan of the Lach Huyen international port must attract local and foreign investment to upgrade the ports and logistics center, as well as raise national competitiveness by attracting more importers and exporters to use the port, according to the Government Office.

The relevant ministries and agencies and the municipal government should provide support for local firms that invest in and operate seaports and logistics services and should create favorable conditions for joint ventures to develop seaports and related services.

Meanwhile, the Ministry of Transport was asked to work with the municipal government of Hai Phong to conduct research and make adjustments to the project plan of the No.3 and No.4 ports to replace Hoang Dieu Port.

After adjustments to the plan for the Lach Huyen international port are completed, the port will have a stronger connection with other modes of transport in the region, will be able to accommodate larger ships and will match the regional infrastructure development plan.

Removal of business conditions facilitates inland waterway transport

Many of business conditions will be removed to facilitate inland waterway transport 

Many business conditions required of firms active in inland waterway transport have been lifted to facilitate their operations.

The Government has issued Decree 128/2018 to revise and supplement decrees on investment and business conditions in the field. The new decree came into force upon signing.

Conditions affecting personnel, such as the rule that crew members must have driving permits and employment contracts and must take out insurance, have been removed.

These conditions are considered unnecessary and interfere too much with the business activities of enterprises.

In addition, Decree 128/2018, amending Article 6 of Decree 110/2014, enables the operators of fixed transport journeys or contract-based journeys to meet just one condition: Operators must establish businesses or cooperatives in accordance with Vietnam’s laws.

Business conditions applied to those building, repairing and renovating vehicles for inland waterway transport have also been revised in a flexible way to suit the size of the firms. Those involved in these activities before May 1, 2015, can continue their business until the end of 2020. If they wish to continue beyond that, they must satisfy the requirements of Decree 128.

Dong Nai plans VND55 trillion for infrastructure development

The southeastern province of Dong Nai plans to earmark over VND55 trillion for infrastructure development during the 2018-2020 period. Of this, investment for transport infrastructure accounts for some VND35 trillion, connecting the province with other localities in the key southern economic zone in the coming period, local media reported.

Multiple road transport projects will be executed, including the Ben Luc-Long Thanh, Dau Giay-Phan Thiet and Dau Giay-Da Lat expressways and Ring Road No.3, all linking Dong Nai with neighboring localities.

The provincial Party Committee is reportedly working with central State-run agencies to finalize a scheme to launch Bien Hoa-Vung Tau Expressway and a metro line running from the provincial city of Bien Hoa to HCMC.

For roads managed by the province, Dong Nai will prioritize funding and building the crucial roads of 25B Nhon Trach, No. 768, No. 319 connecting with Long Thanh-Dau Giay Expressway and a road leading to Phuoc An Port. In addition, it will make preparations for renovating Nguyen Tri Phuong Street in Bien Hoa, D9T768 Street and Da Kai Bridge.

Dong Nai is also focusing on investing in the interlinking of roads, such as installing roads that connect ports, linking National Highway 51 to the central Nhon Trach District or adding a riverside road running from the Cai River in Bien Hoa to An Hao Bridge.

Aside from the investment and renovation work involved in road projects, the province plans to start construction on and develop the ports of Phuoc An and Go Dau, inland container depots and the logistics center and will complete land compensation and site clearance to prepare for the construction of Long Thanh International Airport.

With the ongoing construction and development of multiple projects connecting various modes of transport, the provincial Party Committee expects the socioeconomic development of Dong Nai to receive a much-needed boost.