Overnight rate skyrockets to 4.44%     

Liquidity in the banking system is getting tighter, causing interest rates on the inter-bank market to surge.

Statistics from the State Bank of Viet Nam (SBV) showed that rates for all terms on the market have recently increased.

On Wednesday, the overnight rate skyrocketed to 4.44 per cent per year, up 0.74 percentage points against the previous day and 1.26 percentage points against last Friday.

The overnight rate was even higher than the one-month and two-month deposit rate of 4.4 per cent per year listed at Vietcombank.

Interest rates for one-week loans also surged by 0.2 and 0.55 percentage points against the previous day and last Friday, respectively.

However, inter-bank transactions during the day declined by more than 30 per cent against the previous day to VND15.71 trillion (US$671 million).

Last week, the rates also increased by 0.27-0.34 percentage points, pushing SBV to net inject VND250 billion into the market.

According to analysts at Bao Viet Securities Company, the rate hike in the inter-bank market and the SBV’s net injection showed that the liquidity of the banking system is tight. 

Vietnamese firms display fashion products at Hong Kong fair     

Thirty-five leading manufacturers of handicrafts, garments, textiles, and fashion accessories and garment-related industries in Viet Nam are displaying their products at an international fair in Hong Kong that opened on Saturday.

Global Sources Fashion, Hong Kong’s largest fashion sourcing event, also showcases footwear, fabrics and underwear.

The event features verified suppliers from major fashion manufacturing hubs such as Việt Nam, China, Hong Kong, Taiwan, South Korea, Bangladesh, India, and Indonesia.

This year 10 manufacturers from the Handicraft and Wood Industry Association of HCM City are participating in the trade show, according to the organiser.

Vietnamese exhibitors are also taking part in the Rising and Young Designers Corner, a programme showcasing designs by emerging talents and start-ups from Viet Nam and other countries like India, Laos, the Philippines, Nepal, and Kenya and host Hong Kong.

Thousands of top buyers are expected to attend the show, including Adidas, Avery Dennison, AYE AYE, Colette, eBay, Fossil, GAP, Marubeni, and Mothercare.

Pham Thiet Hoa, director of HCM City’s Investment and Trade Promotion Centre (ITPC), said Viet Nam has become a more attractive complementary garment-sourcing destination for international buyers.

The ITPC is supporting most of the Vietnamese participants as part of its mission to assist HCM City enterprises and attract foreign investment to Viet Nam, he said.

With around 1,800 booths, the fair is expected to welcome 12,000 buyers from 150 countries and territories, including the US, the EU, Hong Kong, and Japan.

Other highlights include conference programmes where industry experts share fashion trends and new technology applications such as AI and 3D printing in the fashion industry.

Viet Nam as manufacture of the world

“Vietnamese garment, fashion accessories and home products firms could take advantage of US’s high tariff on Chinese exports to boost their exports to the US," Hòa, director of ITPC, told Viet Nam News.

Many of China-made products like garments, bags and furniture have become 10 per cent more expensive when exporting to the US, and this could rise to 25 per cent next year, he said.

“For mutual trade benefit, Vietnamese exporters need to enhance export standards, product quality, and trade communications skills.”

Vu Ngoc Khiem, chief representative of Global Sources, said an increasing number of overseas buyers are sourcing products from Viet Nam as the country is rapidly improving its supply chain for locally made garments and taking part in more free trade agreements.

Michael Hung, general manager of Headwind Group, a Hong Kong-based buyer of promotional caps, apparels and toys, said, “Viet Nam offers a unique manufacturing opportunity for importers.”

However, “There are a number of logistics constraints Viet Nam faces that make it more challenging than, let’s say, China. But if you can work through this issue, it can be highly rewarding.”

Viet Nam has been trying to strengthen its current role as the manufacturer of many of the world’s established brands.

The last decade saw steady growth in its garment and textile exports to Europe and North America.

Garments topped the export list last year with record shipments of US$31 billion following a rise of 19.2 per cent, according to statistics from the Viet Nam Textile and Apparel Association.

Garment exports to China last year also surpassed the $1 billion mark, expanding the market beyond Viet Nam’s traditional ones like ASEAN member countries, Eastern Europe, the EU, Japan, and South Korea.

The export target has been set at more than $35 billion this year and $40 billion next year, according to the Viet Nam National Garment and Textile Group.

However, the US withdrawal from the Trans-Pacific Partnership could affect Viet Nam, experts have warned.

Exports to the members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) accounted for 17.1 per cent of Viet Nam’s overall exports, according to the General Department of Viet Nam Customs.

CPTPP is expected to take effect in early 2019 and to open up great opportunities for the sector. 

Ford posts sales growth of 76 per cent     

US automaker Ford Vietnam gained a month-on-month growth of 76 per cent in sales, reaching 2,327 units in September, mostly due to strong sales of the newly launched Ranger and Everest.

“A healthy supply of the new Ranger and Everest in Viet Nam, together with continued strength in demand across our entire Ford lineup, is giving us a lot of confidence heading into the fourth quarter,” said Pham Van Dung, managing director, Ford Vietnam.

The recently launched new Ranger led Ford’s September resurgence with sales of 624 vehicles. The Ranger is continuing its leading position in 2018 with year-to-date sales of 3,854 vehicles.

The mid-sized Everest delivered its all-time best monthly performance in Viet Nam with September sales of 541 vehicles.

Transit continued to lead Viet Nam’s commercial van segment in September with sales of 451 vehicles. Year-to-date sales of the Transit have risen 2 per cent to 4,676 vehicles.

The new EcoSport saw September sales increasing by 33 per cent from the prior month to 456 vehicles, helping push its year-to-date total sales up 15 per cent to 3,377 vehicles.

September sales of the sporty Focus rose 2 per cent from August to 184 vehicles, while year-to-date sales of the 1.5L EcoBoost-equipped Focus increased 60 per cent to 1,397 vehicles.

The US-imported Explorer SUV premium – equipped with a 2.3L EcoBoost engine – saw September sales rise 15 per cent to 47 vehicles, pushing its year-to-date sales to 466 vehicles.

Japanese, local firms to develop freezer trucks     

Automobile manufacturer Isuzu Viet Nam (IVC) has inked a strategic partnership agreement with a local truck-body producer, Quyen Auto, to produce refrigerated trucks as part of Isuzu’s special-use vehicles segment.

Quyen Auto will supply refrigerators and freezer units for thel Isuzu trucks, including the light duty Q-Series, medium duty N-Series, and middle-size and heavy F-series.

General director of Isuzu Viet Nam Hidekazu Noto said the agreement would provide the best quality refrigerated and freezer trucks to meet the demand in Viet Nam.

He said IVC would expand its Isuzu Viet Nam Care car centre (IAC), mobile service, spare part and accessories centres and improve after-sales services.

IVC has developed 18 agents and showrooms including 3S designs (sales-service-spare parts) in Nghe An, Ha Noi, Dak Lak, Khanh Hoa, Quang Tri and Da Nang.

According to the Viet Nam Automobile Manufacturers’ Association, the truck segment had rapidly increased from 100,000 to 250,000 trucks in the past three years, and that figure was forecast to rise from 25 to 30 per cent. 

FLC and Viettel sign co-operation deal     

FLC Group and Viettel have signed a comprehensive co-operation agreement for the 2018-20 period. The deal will help FLC promote the application of IT services in its administration and management.

Under the agreement, Viettel and FLC will co-operate to build and implement common products and services to create a product eco-system to fully tap into the strengths of each party.

Accordingly, Viettel will support FLC in the digital transition process to provide the most convenient experience for customers as well as bring advanced technologies to each unit in the FLC Group.

In addition, Viettel is ready to support FLC in accessing its local market of around 60 million people and 40 million customers in the 11 foreign countries in which the telecom provider has a presence.

Viettel will also integrate FLC’s products and services such as aviation, hotel, entertainment, golf and air ticket distribution through its direct and digital sale channels.

Meanwhile, FLC Group will apply the achievements of Viettel Group in IT and administration such as paperless office (Voffice), Certificate Authority (CA), Sinvoice and Viettel Pay for not only real estate and resorts but also aviation and hi-tech agriculture.

Speaking at the signing ceremony, FLC’s chairman Trinh Van Quyet said as the Government had defined a digital economy as one of the key pillars for the country’s economic development, the Fourth Industrial Revolution (Industry 4.0) has been both an opportunity and challenge for the business community. Firms should quickly access the newest technologies in their production and administration to develop in the Industry 4.0.

Quyet said FLC hoped that Bamboo Airways would not only connect local routes but also expand to foreign markets. With an orientation to become a five-star airline, FLC has invested heavily in Bamboo Airways, with the signing of several trade contracts worth billions of US dollars as well as co-operating with leading technology and trade partners.

He said big multi-sector firms like FLC needed to co-operate with leading and prestigious technology partners to take opportunities from the digital era.

The chairman expected that the agreement would be a pre-condition for upcoming co-operation between the two groups and their member companies.

Le Dang Dung, Viettel’s general director said Viettel was known as a business specialising in providing telecom services. However, in the context of the Fourth Industrial Revolution which will have a big effect on all sectors, the group established Viettel Business Solutions Corporation to support enterprises in digital transition.

“Just like FLC, Viettel has both a local and international scope. From that point of view, Viettel considers FLC not only a partner but a companion”, he added.

"Although this is the first time Viettel has worked with a private enterprise, after the meeting today, any barriers or gaps between State-owned and private enterprises have been eliminated," he said.

The general director believed that Vietnamese firms would be successful in digital transition, opening new opportunities for people, companies and the country. 

Viettel’s vOCS 3.0 wins IBA award     

Viettel Group’s online charging service called vOCS 3.0 won the gold winner for best new product or service of the year in telecommunications.

The award was granted by International Business Stevie Awards in London on Sunday.

vOCS 3.0 was the only Vietnamese winner of the award, which was also bestowed upon Ooredoo (Qatar) for fastest 5G service in the world, Singtel (Singapore) for the Singtel Shop Comcentre flagship store transformation and Telkom (Indonesia) for the Vessel Information System Mobile App.

The Viettel product was praised for its creativity and impact on a large number of users as it can be individualised for each customer.

Currently, vOCS 3.0 is used in 11 countries in which Viettel is operating.

The most distinctive feature of vOCS 3.0 is the ability to design for each customer a tariff package, which no other online charging service in the world can do.

Clara Im, Communications Manager – Asia, The Stevie Awards, said the vOCS 3.0 shows the insight of researchers and product developers, and the ability to address the reservations of data service providers to integrate voice and data on a real-time billing system.

For the next version of the service, Viettel plans to support Mobile Virtual Network Operator, Network Slicing and be ready to bill tariffs for Internet of Thigns and 5G subscribers.

With the 4.0 version, Viet Nam would become one of few OCS producing countries supporting virtualisation technology, helping save costs and opening new business opportunities.

Meanwhile, TH Milk Joint Stock Company gained three awards at the International Business Stevie Awards.

They included Thai Huong, founder of TH Milk, winning Entrepreneur of the Year – Food & Beverage, while TH Milk won bronze in the Customer Service Department of the Year – All Other Industries and its TH true NUT, a milk product, won the bronze for Best New Product or Service of the Year – Consumer Products.

The annual International Business Stevie Awards have been held since 2003, aiming to the achievements of businesses and individuals worldwide to the community including ICT and telecom sectors.

This years event attracted more than 3,900 nominations from 74 countries. 

Vietnamese team listed among top young social enterprises in Singapore     

Cricket One from Viet Nam was listed among top social enterprises winning the Young Social Entrepreneurs (YSE) 2018 in Singapore, with an award of up to S$20,000 (US$14,500) to further boost their business.

Led by Dang Cao Nam and Bicky Nguyen, Cricket One aims to ensure global food security. By rearing crickets and using the insects to produce sustainable and affordable food, Cricket One offers an alternative solution to traditional livestock.

Previously, 35 young social entrepreneurs from 14 teams gathered in Singapore on October 19 to complete the final round of the Singapore International Foundation’s YSE 2018 programme.

The teams – from Bhutan, Cambodia, India, Indonesia, Malaysia, Singapore, the United States and Viet Nam – presented their social enterprise ideas to a panel of judges at the YSE Pitching for Change session. Seven teams were awarded up to S$20,000 each to kickstart or scale up their business ideas for social change. They were chosen based on the impact and scalability of their social enterprise, as well as the commitment level of team members.

This year, the teams’ social business plans covered areas such as agriculture, technology and digital platforms, food and beverage, environment and energy, education and training, and consumer goods and services. Notwithstanding the diversity of nationalities, backgrounds and impact areas, all teams shared the common goal of making positive long-term social change.

“Today’s young people are passionate, purpose-driven, and many of them strive to make a positive impact on the world through their work. We are proud to support them in turning their social enterprise dreams into reality via the YSE programme,” said Jean Tan, Executive Director of Singapore International Foundation.

Since its launch in 2010, the YSE programme has nurtured more than 900 alumni, spanning 29 nationalities. 

Securities firm SSI reports sharp rise in profits     

Saigon Securities Inc. reported strong growth in the third quarter despite the securities market correction, with profits surging 227 per cent to VND541.6 billion (US$23.16 million) and revenues by 53 per cent of VND958.8 billion ($41.01 million).

Market liquidity was down by 19 per cent. Foreign investors accounted for only 19 per cent of the market, down from 21.5 per cent in the second quarter.

But SSI still managed to achieve good numbers and retained its leading brokerage position on both the HCM City and Hanoi stock exchanges by a big margin.

Revenues from brokerage went up by 32 per cent in the third quarter to VND222.59 billion. Revenues from investment banking also increased sharply to VND86.3 billion.

It won the “Best Bank in Vietnam for Equity Finance for Real Estate services” from Euromoney magazine.

Its pre-tax profits for nine months were VND1.41 trillion on revenues of VND3.064 trillion, year-on-year increases of 57.9 per cent and 55 per cent.

The company is confident of meeting its targets for the full year. 

Mega food firm KIDO announces modest Q3 results     

Giant food producer Kido Group has announced its third quarter results and those of its subsidiaries.

The company said investment to expand markets for its oil and new products pushed up expenditure in the first nine months of the year by 6.1 per cent while sales of ice cream and yoghurt declined, dragging down profits by 3.2 per cent to VND1 trillion ($43.8 million).

Nine-month revenues increased by 12.5 per cent to over VND5.7 trillion (US$250 million).

In the third quarter alone, revenues and profits fell by 9.4 per cent and 15.3 per cent year-on-year to VND1.9 trillion ($83 million) and VND369 billion ($16.2 million), respectively.

Subsidiary Tuong An Agriculture Oil Joint Stock Company (TAC) earned revenues of more than VND3.2 trillion ($140 million) in the first nine months, up 4.5 per cent.

TAC focused on developing high-end products in the period. Its expenditure remained high as it kept expanding its distribution system to reach more consumers.

TAC expects high-end products to be the key driver of its growth in future. It will continue to diversify its products, including packaged ones.

Another subsidiary, Vocarimex, reported revenues of over VND3.2 trillion ($145 million) in the year-to-date, up 48 per cent. Profit after tax was VND203 billion ($8.9 million), up 0.9 per cent.

Kido Food said revenues were marginally down to VND1.1 trillion ($48 million), while profit after tax plummeted by 68 per cent to VND46 billion ($2 million).

KDC attributed the decline in revenue and profit to tough competition in what is a popular segment.

The growth in the high-end segment has helped the company cover its losses in the popular segments.

Revenues from new products under co-operation with Dabaco Foods have not been as good as expected.

The company delayed the launch of new products as it focused on improving production efficiency.

KIDO Group used to be a confectionery manufacturer, but sold its snack business and entered the food industry with products like cooking oil, ice cream, chilled products, and instant noodles. 

Mui Ne — Phan Thiet, a new magnet in hospitality market     

The tourism property market in Mui Ne, a beach town in the south-central province of Binh Thuan, has recently become a hot destination for both foreign and domestic investment thanks to its 200km coastal road and improved infrastructure.

At a conference on the hospitality market late last week experts said popular tourism property markets like Da Nang, Nha Trang and Phu Quoc have slumped after growing strongly for a long time.

The money moved to other areas in pursuit of new investment opportunities, they said.

Dương Thuy Dung, senior director of CBRE Vietnam, said tourism properties in coastal provinces have great potential to develop thanks to their advantageous location and weather condition.

Some provinces like Da Nang and Nha Trang have an edge because of their excellent infrastructure including an international airport adding, and this is the reason why many hospitality projects are being developed in those places, she said.

Now there are new markets where tourism property projects are coming up like Phu Quoc, Phan Thiet and Ha Long, she said.

Many of the experts at the conference agreed with her that the tourism property market, particularly in Mui Ne — Phan Thiet, would develop since the number of visitors coming to the country remains high.

Nearly 12 million people have visited Viet Nam in the first nine months of this year, and many headed to coastal areas in the central region.

Mauro Gasparotti, director, Savills Hotels Asia Pacific, said unlike in the past many visitors are now coming back to Viet Nam, and the country has become their ideal choice for a long holiday.

Furthermore, people’s incomes continue to rise and so they are ready to pay more, he said.

The conference heard that tourists’ spending has a strong impact on the development of the hospitality market because people with higher incomes are ready to pay to stay at upscale hotels.

With the large numbers of visitors coming to the country, investors are flocking to explore investment opportunities.

The first tourism villas were built in Mui Ne in 2005, but the place seemed to lag behind others due to lack of adequate investment in infrastructure.

In recent years, however, infrastructure has been improved, offering customers more convenient transportation options.

The number of visitors to Binh Thuan Province has been growing at 12-14 per cent a year in recent years, and revenues from tourism by 19-20 per cent.

At an investment promotion conference held in April last year to discuss development trends, Binh Thuan authorities said they want to make Phan Thiet a beach tourism and sports city.

By year 2020, the province hopes to welcome around seven million visitors, including 850,000 foreign visitors, and to 14 per cent annually.

To achieve the goal, the province has invested heavily to upgrade the transportation system.

A coastal road connecting Phan Thiet with other tourist destinations in the south-central region has been built.

The Long Thanh — Dau Giay Highway has been finished, drastically cutting the travel time from HCM City to Phan Thiet. Next year the Dau Giay — Phan Thiet Highway is set to open, reducing the time to a mere 1.5 hours.

The 113km Vinh Hao — Phan Thiet Highway will be completed by 2021, meaning developers will have a greater chance than ever to invest in tourism property projects in the province.

Besides, Phan Thiet Airport will be built, with the first phase completed in 2022, at a cost of VND5.6 trillion. It will bring more visitors to the province and is a big plus for the hospitality sector.

The potential is huge but the number of resorts in Phan Thiet is as not as in much other provinces. Most of them have been built since 2005. In recent years there have been only one or two five-star projects.

Giant developer Novaland Group has entered the market with a project called NovaHills Mui Ne Resort and Villas.

The project is located at the intersection of Huynh Thuc Khang and Vo Nguyen Giap streets.

With Novaland’s professionalism, Novahills Mui Ne is expected to heat up the tourism property market in Mui Ne.

Thuy from the Tien Giang Mekong Delta Province said she has bought in some Novaland projects and has now decided to also buy in NovalHills.

She believed it would be a good project since it is developed by a prestigious developer, managed by branded operator and designed in Spanish architectural style.

A foreign customer said more tourists are coming to Viet Nam every year, and the country needs to have more resorts by the sea.

Novahills Mui Ne is exactly what Viet Nam needs, she said.

Novahills Mui Ne will have 600 villas with many amenities, such as water park, outdoor cinema, sports facilities, etc.

Novaland is a giant property developer with over 26 years of experience. It has begun to invest in the hospitality market, developing projects in tourism areas like Can Tho, Ba Ria - Vung Tau, Phan Thiet - Binh Thuan, and Cam Ranh - Khanh Hoa.

VIB’s pre-tax profit skyrockets 176% in 9 months     

The Vietnam International Bank (VIB) recorded a significant increase of 176 per cent in pre-tax profit to VND1.72 trillion (US$75.5 million) in the past nine months, according to data released on Monday.

The bank’s pre-tax profit in the first nine months accounted for 86 per cent of its annual target. Its revenue increased by 48 per cent year-on-year, of which interest income and non-interest income were up 50 per cent and 37 per cent, respectively.

The cost-to-income ratio at VIB dropped to 48 per cent from 57 per cent in 2017. Meanwhile, its return on equity ratio was 19.4 per cent thanks to lower provision expenses after the bank bought back its bad debts from the Viet Nam Asset Management Company.

From January to September, the bank’s total assets topped over VND132.5 trillion, up 8 per cent year-to-date, while lending and deposits experienced respective rises of 13.1 per cent and 15 per cent to VND95.2 trillion and VND89.2 trillion. Its non-performing loan ratio remained at 2.5 per cent in the nine-month period.

According to VIB, its retail banking business had continued to make a significant contribution to the bank’s nine-month growth.

Lending reached VND67.4 trillion, surging 58 per cent over the same period last year, making VIB become one of the biggest retail banks in the market.

VIB maintained its top position in auto-loans with a 25 per cent market share. At the same time, with its integrated insurance distribution model, VIB ranked in the top three in terms of bancassurance sales in the country with yearly growth of over 200 per cent.

A multi-channel credit card development model combined with digital banking, its branch network, direct sales and telesales channels had helped credit card growth rise 84 per cent year-on-year and total credit card spending in the third quarter went up by 214 per cent.

The positive growth in both size and quality had helped VIB’s retail revenue in the first nine months skyrocket by 92 per cent against the corresponding period last year, the bank said.

In addition to positive business results, VIB has maintained the best safety ratios in the banking industry. Moody’s has upgraded the long-term local and foreign currency deposit and issuer ratings of VIB from B2 to B1.

VIB’s safety ratios have always been strong and complied with regulations set by Government agencies and partners. VIB’s capital adequacy ratio reached 12.4 per cent and the ratio of short-term deposits used for long-term loans stood at 38.2 per cent, lower than the permitted maximum limit of 45 per cent.

In July, VIB was recognised by the State Bank of Viet Nam as one of five banks to have re-purchased all its bad debts from the VAMC. Three years ago, SBV selected 10 commercial banks to pilot Basel II standards and set a deadline of 2020 for the banks to meet the standards. To date, only VIB and Vietcombank are ready to apply this. 

Samsung experts help train consultants in supporting industries     

The Ministry of Industry and Trade and Samsung Electronics Vietnam on October 19 organised in HCM City the closing ceremony for the third training course for Vietnamese consultants in supporting industries.

The course had begun on July 23 with 25 participants, who were taught quality control and production management theory for four weeks followed by eight weeks of practical exposure at five companies, where they together with Samsung’s experts assessed the operations and business situation of the enterprises and advised them on how to renovate their production process, quality management and distribution of products.

The participants said the advice provided by the South Korean experts and Vietnamese consultants has helped improve their productivity, quality and human resources management, increasing their competitiveness.

Nguyen Minh Tuan, chairman of Nghia Nippers Corporation said he was honoured to be selected for the programme, which took place at a time when his company attempted innovations to improve its production, cut costs and increase employees’ incomes.

Between August 15 and October 17 its management team had received both theoretical training and practical experience in production stages under the programme, he said.

Tran Minh Khai, director of Thai Duong Company, said following the consultancy, his company had rearranged equipment and applied the 5S system (which represents Japanese words that describe the stages of a workplace organisation process), and productivity has obviously increased.

Khang Thanh JSC reported similar results.

Truong Thanh Hoai, director of the Ministry of Industry and Trade’s Industry Department, said the industrial sector played an important role in the country’s economy.

But its competitiveness and value addition remain low, with accessories and parts used in the industry reliant on imports due to limited capacity, modest management and poor technologies of local companies.

But the Government was implementing programmes to help firms improve their capacity, he said.

The training programme was carried out under a memorandum of understanding signed by the ministry and Samsung.

The programme, comprising eight modules until 2019, is aimed at equipping Vietnamese consultants with the knowledge and skills required in supporting industries.

The first two courses were held in northern provinces.

Hoai hailed the results of the course and hoped the Vietnamese consultants joining the programme and acquiring experience and knowledge from the South Korean experts would then pass on their knowledge to local firms.

He believed the programme would enable Vietnamese business to achieve international standards, increase the number of Vietnamese suppliers and promote their sustainable co-operation with Samsung as well as other multinational groups.

Kim Dong Hwan, deputy general director of Samsung Vietnam, said he was very pleased with the training outcomes.

“We are working with industry experts to develop training programmes more systematically and efficiently.” 

Singapore state fund invests in Viet Nam     

GIC Pte, Singapore’s sovereign wealth fund, has made huge investments in large Vietnamese firms such as VinHomes, Vietjet, Techcombank and Masan.

GIC is the world’s biggest sovereign wealth fund with an estimated US$359 billion of global assets. Earlier this month, it spent nearly $100 million to acquire some 24.5 million shares in Viet Nam’s consumer giant Masan Group Corporation (MSN) to bring its total number of shares to 75.7 million, a 6.5 per cent stake in the company.

This $100 million deal is one of many recent major acquisitions that GIC has made in Viet Nam, cafef.vn reports.

GIC played a part in Viet Nam’s largest equity offerings, all of which were completed in the past year. It invested about $1.3 billion in luxury developer Vinhomes JSC ahead of its May initial public offering, which was the country’s biggest-ever single share sale. GIC also offers loans to Vinhomes.

The fund was a cornerstone buyer in the $922 million IPO of Techcombank, a Vietnamese lender backed by Warburg Pincus. It was also an important investor in mall operator Vincom Retail JSC’s 2017 listing and emerged as a substantial shareholder in VietJet Aviation JSC before the budget airline’s stock market debut earlier last year.

GIC now holds 5.74 per cent of VinHomes shares and 4.97 per cent of Vietjet, while its ownership at Techcombank is not disclosed.

GIC also invested in dairy firm Vinamilk, agriculture and food company PAN Group JSC, telecommunications group FPT Corporation and unlisted Vinagame Corporation. In 2015, GIC spent about $100 million to buy a 10 per cent stake in VNG.

In May, GIC divested from taxi company Vinasun after suffering losses of VND125 billion over four years of investment. After GIC’s sale, Vinasun shares rose from VND14,000 to trade at VND19,000.

GIC, Dragon Capital, VinaCapital and Korea Investment Management (KIM) are the largest investment funds on the Vietnamese stock market.

GIC was established in 1981 to manage Singapore’s foreign exchange reserves. The fund’s indirect investment portfolio in Viet Nam includes such sectors as banking, aviation, consumer goods and agriculture.

In addition to GIC, the Singaporean government owns an investment fund called Temasek Holdings with an estimated $200 billion of global assets.

Temasek has also invested in Viet Nam for a long time, mainly in real estate through Singapore-owned developer Mapletree Investments Pte Ltd.

Mapletree’s notable projects in Viet Nam include the office and residential development Pacific Place in Ha Noi, mPlaza Saigon (previously Kumho Asiana Plaza), SC Vivo City and Mapletree Business Center in HCM City.

HCM City urged to speed up equitisation of State-owned enterprises     

Deputy Prime Minister Vuong Dinh Hue has urged leaders of HCM City to promote and arrange the equitisation of state-owned enterprises that operate in HCM City.

Hue, who is head of the Government Steering Committee on Corporate Renovation and Development, praised the city’s earlier steps to equitise companies in a meeting last week, but pointed out that emerging legal issues and implementation had slowed progress.

However, he noted that the Prime Minister will consider postponing equittisation of some of the city’s State-owned enterprises.

Hue said that the city’s equitisation rate was slower than the nation’s.

He said that far more State-owned enterprises should be equitised, except in security and military.

“The city should withdraw State capital from enterprises, even profitable ones,” he said.

The deputy PM urged the People’s Committee to submit a plan to the city Party Committee to equitise and rearrange State-owned enterprises.

“The city must identify the value of equitised State-owned enterprises, and approve land-use plans before equitisation,” he said.

The national plan for this year called for a total of 64 State-owned enterprises to be equitised, with 39 in HCM City. However, the city has not been able to equitise any enterprise this year.

“The city has prepared to equitise and rearrange State-owned enterprises for a long time, but the final plan hasn’t been approved by the city Party Committee. This has led to a delay in equitising and rearranging 39 State-owned enterprises this year,” Le Thanh Liem, deputy chairman of the city People’s Committee, explained.

The chairman of the People’s Committee, Nguyen Thanh Phong, said that equitisation had been delayed because many issues remained unresolved.

The issues include the role of state-owned enterprises in implementing development plans; social welfare; State benefits; foreign investors’contribution of land-use rights via investments; and value of assets located downtown.

As a result, the city said the Government would adjust equitisation progress and the divestment plan in the 2018-2020 period and after 2020.

For instance, the city will equitise 32 State-owned enterprises in 2019 instead of 39 in 2018. The remaining seven enterprises will be equitised by 2020.

After 2020, state-owned capital in enterprises will be withdrawn under the Prime Minister’s Decision 58 and official letter No 991.

At the meeting, leaders confirmed that equitisation of State-owned enterprises must strictly follow the law but should also be implemented more quickly.

In a related matter, in November, the city must reduce the number of employees in administrative units, promote efficiency, and transform them into joint-stock companies, if possible. 

500 enterprises in HCM City trained to use 24/7 e-tax payment scheme     

About 500 enterprises in HCM City have been trained to use a 24/7 e-tax payment system by the city’s Customs Department.

The project will help taxpayers pay tax directly through the e-payment gateway at any time (including holidays) and anywhere with internet access. Customs will clear goods after receiving confirmation for successful tax payment from the banks.

This service can help shorten time and money to complete customs procedures for import-export activities. It is expected to help enterprises quickly clear goods and carry out extensive cross-sector reforms to reach the ASEAN-4 level of export and import facilitation as guided by the Government.

At the training workshop on October 19, the customs authority introduced the payment scheme and instructed enterprises on how to access and make tax payments on the portal.

Since the implementation in October last year, the total amount of taxes collected through e-tax payment services has reached VND10.6 trillion (US$456 million) with a total of 61,350 transactions.

This number is considered modest compared to total tax payments. The customs authority is planning to upgrade the system to facilitate tax payments.

To date, 24 banks have been certified to provide the 24/7 e-tax payment scheme.

VN, Cambodia hold dialogue on timber trade     

Vietnamese and Cambodian officials, business executives and experts discussed measures to enhance co-operation in the trade and management of timber and timber products at conference in HCM City last week.

Experts said the two neighnours share more than 1,100km of border across 10 provinces in Viet Nam and nine in Cambodia, making it a challenge to control illegal trade, including in forestry products.

Pham Van Dien, deputy director general of the Viet Nam Administration of Forestry, said assuring sufficient timber supply from legal sources is important for the country’s exports.

Timber imports help diversify raw material sources.

“Cambodia is one of the countries supplying timber for our processing factories.

“To combat illegal logging, transportation and trade of wood in border provinces, both Viet Nam and Cambodia have improved their institutional and legal frameworks in recent years. But it seems the two countries’export-import enterprises find it difficult to operate within the law.”

According to Chan Ponika, deputy director general of the Forestry Administration of Cambodia, the dialogue would contribute to boost “forest industry development, enhancing trade in timber and timber products from legal sources in both countries.”

The meeting would be a good experience and learning that could be used to cope with the challenges involved in cross-border timber and timber products trade, he said.

The dialogue also discussed timber processing and trading; regulations for legal logging, transportation, processing and trading and then two countries’ customs regulations on timber import and export.

Nguyen Xuan Thang, head of the forestry violations investigation and handling division at the Forestry Protection Department, said Viet Nam has issued regulations on dossiers of lawful forest products and inspection of the origin of forest products and administrative sanctions for illegal logging, transportation, possession, processing, and trading of timber.

It allows only timber from legal sources to enter the country, he said.

Delegates at the event said there was a big discrepancy in the export volume and revenue figures reported by the two sides, and called for finding a way to enhance co-operation in information sharing to improve the situation.

Teang David, deputy director of the Cambodian Department of Legislation and Law Enforcement, said Cambodia has banned the export of timber from natural forests and only allows exports of wood from cultivated forests.

To export timber, there are quotas, import-export licenses and other requirements.

Viet Nam and Cambodia need to strengthen join actions in combating and seizing illegal timber from Cambodia and reporting and sharing information on the chain of custody.

Participants also suggested the two sides should strengthen enforcement of the rules they already have in place.

Bui Chinh Nghia, deputy director, Department of Forest Production Development, said Viet Nam’s wood industry has developed rapidly and steadily in recent years to become the fifth largest exporter in the world and second biggest in Asia. Its timber and forestry products exports were worth US$8 billion last year.

The industry used about 31 million cu.m of timber last year, with domestic supply accounting for 25 million cu.m, mainly coming from concentrated forests, rubber plantations, home gardens, and scattered trees, he said. The country spent $2.19 billion on timber imports last year, with Cambodia accounting for $219 million worth.

On the second day of the dialogue today delegates will make a fact finding trip to the Xa Mat border gate in Tay Ninh Province to study clearance procedures for timber consigned from Cambodia to Viet Nam. The event is organised by Viet Nam Administration of Forestry in collaboration with the Forestry Administration of Cambodia. 

Quang Ninh attracts foreign attention as investment destination

The northern coastal province of Quang Ninh has caught the attention of many foreign investors after they made a field trip to the province in the framework of the recent International Real Estate Conference (IREC) 2018 held in Hanoi.

Former President of the Singapore Institute of Estate Agents Harry Yeo shared his impression of the majestic beauty of Ha Long Bay during his first trip to the World Heritage site. He said a long and beautiful coast and expansive unused land in the province constitute excellent potential for tourism and real estate development.

According to assessment by the Vietnam Association of Realtors, Quang Ninh is fast becoming an attractive destination for both tourists and investors, with the focus on attention on Ha Long, Mong Cai and particularly Van Don, an area designated to be a special economic zone.

In the first nine months of 2018, Quang Ninh welcomed more than 10 million visitors, including 3.6 million foreigners, up 19 percent from the same period last year. Revenues from tourism were estimated at 17.5 trillion VND, up 30 percent year on year.

As such, the province promises to be a profitable land for tourism and resort property development.

During the past two years, Quang Ninh has attracted over 100 real estate projects, most of which involved tourism and resort.

The biggest investor in the field is Vietnam’s largest private enterprise Vingroup, which poured money into the Vincom Ha Long – a modern shopping and entertainment centre in Ha Long city on the shore of the World Heritage site Ha Long Bay, and the five-star tourism-resort complex of Vinpearl Ha Long Bay Resort.

The Sun Group, another major developer in Vietnam, marked its presence in the city with the Van Don service complex, the beach amusement complex Ha Long Ocean Park, and the beachfront resort complex Sun Premier Village Ha Long Bay.

In particular, the group’s Sun World Ha Long Complex is the biggest tourism property project in Ha Long, with a total investment of 7.794 trillion VND.

The FLC group invested 3.4 trillion VND in the FLC Ha Long, a complex of golf course, villas, condo hotels and conference facilities, which spreads over 224 ha of land. It is also carrying out a project building a 50-storey twin-tower complex in the centre of Ha Long city.

The recent inauguration of the Ha Long-Hai Phong highway provides an important link in the infrastructure network of the northern key economic triangle of Quang Ninh, Hai Phong and Hanoi.

The highway helps cut considerably the distance from Hai Phong to Quang Ninh, thus enhancing connectivity between the two localities, which is believed to facilitate not only transport but also the development of tourism property in the region, said Vice Chairman of the Vietnam National Real Estate Association Nguyen Ngoc Thanh.

Vice Chairman of the Vietnam Association of Realtors Nguyen Van Dinh noted that the completion of many transport infrastructure projects in Quang Ninh recently has helped the province overcome previous disadvantages in terms of travel distance. As a result, the number of visitors to Quang Ninh will increase fast in the time to come, thus further attracting investment in tourism real estate. He said the property market in Quang Ninh will certainly grow bustling in the future.

Former deputy minister of natural resource and environment Dang Hung Vo shared the view that transport infrastructure plays an important role in attracting tourism property investors.

However, experts warned that the province’s administration needs to draw out specific plans for the development of tourism property with consideration of real demand, so that the local potential will be fully tapped without affecting the landscape of the World Heritage site of Ha Long Bay.

Sacombank to move four branches north     

Sacombank will open a branch each in Thai Binh, Ninh Binh, Nam Dinh, and Lao Cai provinces by closing four others in the south rather than getting new licences.

It has got approval from the State Bank of Viet Nam to close its branches in Tri Ton in An Giang Province, Nam Can Tho in Can Tho, Thanh Binh in Dong Thap, and Thoi Binh in Ca Mau.

It has also been allowed to open four transaction offices under the four new branches.

It has a network of 570 branches and transaction offices in 52 provinces and cities in Viet Nam besides Laos and Cambodia, the largest in the private sector.

Sacombank’s presence in the four provinces is in line with its restructuring plans approved by the State Bank of Viet Nam two years ago.

Sacombank has a presence in all provinces and cities in the south-east, south-west, centre and Central Highlands since 2012. 

HDBank opens Tay Ninh Province branch     

HD Bank on Wednesday opened its 280th branch in the southern province of Tay Ninh’s Trang Bang Town.

Located on National Highway 22 in Gia Huynh quarter in Trang Bang, it is the lender’s fourth branch in the province.

The bank offers regular products like deposits, loans, payment, money transfer, and financial services, and has promotions targeting depositors and micro, small and medium enterprises.

To mark the opening, HDBank gave gifts to customers and is offering 0.7 per cent interest extra on six-month deposits and 0.4 per cent for 12- and 13-month deposits.

For its outstanding business performance in recent years, HDBank has been honoured with the Labour Medal, second class, besides a number of awards from financial publication Euromoney — for Best Bank in Viet Nam this year and for Best Cash Management in Asia Pacific – the League of American Communications Professionals’ Gold Award, and HR Asia’s Best Companies to Work for in Asia Award this year.