Forestry sector in 5.72 billion USD trade surplus

Vietnam’s forestry sector enjoyed a trade surplus of 5.72 billion USD in the first 10 months of 2018, according to the Vietnam Administration of Forestry (VNForest) under the Ministry of Agriculture and Rural Development.

The country earned more than 7.61 billion USD from exports of forestry products between January and October, 84 percent of the yearly target. The figure is 16.12 percent higher from the same period last year and accounted for 23.37 percent of total agro-forestry-fishery shipments.

Timber and wood products contributed 7.23 billion USD to the exports. The US, Japan, China, the Republic of Korea and the European Union remained the largest importers of Vietnamese wood and timber products, purchasing 87 percent of total exports.

VNForest estimated Vietnam has planted 161,207 hectares of forest so far this year, up 7.5 percent year on year 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.

Wood and timber products are Vietnam’s sixth export item. The country is the largest exporter of those products among ASEAN member nations, the second largest in Asia and fifth in the world. 

It expects to earned 9 billion from exports of timber and wood products this year, up 1 billion USD from last year. 

BIDV’s pre-tax profit up over 30 percent in nine months

The Bank for Investment and Development of Vietnam (BIDV)’s pre-tax profit increased by 30.6 percent year-on-year to 7.2 trillion VND (305.45 million USD) in the first three quarters of 2018. 

According to the bank’s latest financial report for the period, it earned 32.8 trillion VND in operating income in the period, up 18.3 percent year-on-year.  

As of September 30, the bank’s total assets amounted to more than 1,268 trillion VND, up 12.67 percent compared to the same period last year.

The bank has mobilised some 953.5 trillion VND in capital, up 10.9 percent compared to the beginning of the year. 

Its credit structure has shifted towards increasing the proportion of retail sector and small- and medium-sized enterprise (SME) segments; and short-term debt, focusing on terms of production and business.

The BIDV continues to be the leading joint-stock commercial bank. 

The bank is focusing its resources for its restructuring plan in connection with dealing with bad debts, and working to mobilise more capital in line with its roadmap.

HCM City specifies key agricultural products

The administration of Ho Chi Minh City has issued a list of key agricultural products to develop to improve the income and living standards of rural residents.

These products are vegetables, flowers and ornamental plants, dairy cows, pigs and brackish water shrimp. Meanwhile, ornamental fish were named in the group of potential products.

Director of the municipal Department of Agriculture and Rural Development Nguyen Phuoc Trung said these products not only account for big proportions in local agriculture but also generate high profit for farmers. With considerable potential, their productivity and quality can be improved using high technology and new varieties.

In 2017, the production value of these key and potential products reached 11.85 trillion VND (509.4 million USD), making up 60.9 percent of HCM City’s total agricultural production value.

Trung noted they have been included in local agricultural development programmes, including ones on developing high-quality plant varieties and animal breeds, safe vegetables, ornamental plants and dairy cows.

He added that his department will continue building plans and suggesting policies, especially on supporting capital, transferring high technology, creating new varieties and training labourers, to develop these key products.

Medical expo to kick off in Ha Noi in December     

The 25th International Medical, Hospital & Pharmaceutical Exhibition (Viet Nam MediPharm Expo), slated to take place in Ha Noi from December 6 to 8, promises to showcase new products and technologies.

The three-day event, to be held at the Ha Noi International Exhibition Centre, will have around 250 booths by 200 enterprises from 18 countries and territories including India, Canada, Czech Republic, Taiwan, Germany, South Korea, Iran, Malaysia, USA, Pakistan, Thailand, China, Switzerland, Qatar and Viet Nam.

Viet Nam Medipharm Expo 2018 is an annual event sponsored by the Ministry of Health and Viet Nam National Trade Fair and Advertising JSC (Vinexad) in collaboration with Viet Nam Pharmaceutical Companies Association.

The products are diverse, including medical equipment, laboratories, hospital equipment, pharmaceuticals, beauty products, pharmaceutical machinery, dental products, ophthalmology and health travel.

In an effort to expand co-operation in the field of medical services, the Busan Economic Promotion Agency and Busan Metropolitan City (South Korea) collaborated with Vinexad to organise the "Busan (Korea) Medical Tourism Industry Exhibition" in concurrence with Viet Nam Medipharm Expo 2018.

The Busan Medical Tourism Industry Exhibition 2018 will be held in Ha Noi for the first time with the aim of promoting opportunities for health care service and patient exchanges between Viet Nam and Korea.

Busan is a city with a high standard of medical infrastructure, including four specialised university-based hospitals, 27 general hospitals and 4800 other specialised hospitals and clinics. The exhibition will be attended by 40 businesses from Busan including medical institutions, hospitals with high quality medical tourism services and pharmaceutical businesses.

"We hope the Busan Medical Tourism Industry Exhibition 2018 will attract more foreign patients, creating business opportunities for Busan’s medical enterprises,” said Oh Keo Don, Mayor of Busan City.

Vinfast, PV Oil ink deal on charging stations     

Viet Nam’s automaker VinFast and Vietnam Oil Corporation (PV Oil) on Thursday signed a Memorandum of Understanding (MoU) on implementing charging stations and leasing batteries for electric vehicles.

Under the MoU, PV Oil will provide 600 petrol stations nationwide for VinFast to install its charging station system in the first phase. This will rise to 20,000 stations by 2020.

Based on these locations, VinFast will be able to flexibly deploy models to meet the needs of customers in terms of electric power, including fast charging systems, battery rental and overnight charging stations.

PV Oil is one of the leading petroleum retailers in Viet Nam with a network of shops and agents covering 63 provinces and cities. The cooperation with PV Oil is an important step for VinFast’s plan to launch smart electric motorbikes by the end of 2018 and electric cars in the future.

In addition to identifying locations, VinFast is promoting the development of battery charging stations using advanced intelligent green power control technology. This system will allow the identification of vehicles and customers automatically, understanding habits to facilitate and as well as taking care of customers effectively. Customers can also pay for fast charging and battery charges with Vingroup’s loyalty card (VinID), as well as other payment methods.

Nguyen Viet Quang, general director of Vingroup, said the cooperation with PV Oil would be the beginning of VinFast’s plan to set up 30,000 - 50,000 charging stations and battery leasing terminals nationwide.

On top of coordinating with PV Oil, VinFast will continue to seek prestigious partners, having the advantages of location to expand the network of charging stations, with the aim of rapidly increasing the coverage and meeting the requirements of customers.

WECREATE VIETNAM receives up to US$50,000 for community initiatives     

Facebook recently announced the winners of its Facebook Community Leadership Programme. From Viet Nam, Ngo Thi Hoai – Programmes Director of WECREATE VIETNAM, an entrepreneurial community centre for women – was awarded the fellowship.

From over 6,000 applications, 115 people were accepted to the programme as community leaders in residence, fellows or youth participants.

In addition to funding, participants will receive training, mentorship and guidance from Facebook. At select points over the next year, they will spend time at Facebook’s headquarters in Menlo Park, California working with the team to help develop their community initiatives.

“We are honoured that every day, across the country, people come together on our platform to support each other and build community,” said Facebook Country Director for Viet Nam Christy Le. “Our community leaders work tirelessly to make this possible – whether it is running a support group for mothers or driving a charitable giving movement. Ngo Thi Hoai is one such leader, and we are proud to have her represent Viet Nam in the Facebook Community Leadership Programme.”

“A Mekong Business Initiative study shows that Viet Nam’s enterprising women own 25 per cent of the country’s SMEs,” said Ngo Thi Hoai. “They are the boosting the economy; however, there are still barriers to empowering them to grow stronger.”

“WECREATE VIETNAM has created an inclusive environment where women can access essential resources needed to overcome these barriers and start or grow their businesses,” said Hoai. “We hope this programme from Facebook Community will help WECREATE unleash more potential of women-led entrepreneurship in Viet Nam in the future.”

The Facebook Community Leadership Programme is designed to empower leaders from around the world who are building communities. 

Tech key to development     

Viet Nam’s gross domestic product (GDP) growth reached 6.81 per cent last year, the highest in the last decade.

The country’s competitive capacity increased five places to rank 55th out of 137 countries, its innovation index increased 12 ranks and the index of sustainable development rose 20 places.

These achievements are attributed to the efforts of the Government in transforming the economic growth model, applying the achievements of industry 4.0 and promoting innovation in the digital era, announced a meeting on digital enterprises and innovation in Ha Noi on Friday. It was co-organised by the Institute for Brand and Competitiveness Strategy (BCSI) and the Viet Nam Internet Association.

The digital economy has four pillars, which are digital technology infrastructure, supporting infrastructure, electronic business and e-commerce, said Nguyen Thi Minh Huyen, deputy head of the Viet Nam eCommerce and Digital Economy Agency.

The country has a population of 96 million, of which 35 per cent are city dwellers. The number of Internet users is 64 million, accounting for 67 per cent of the total population.

Huyen noted that the supporting infrastructure for digital technology in Viet Nam was still modest.

According to a survey of the Viet Nam eCommerce and Digital Economy Agency, only 40 per cent of the country’s population had banking accounts.

The online payment rate accounted for only 10 per cent of transactions.

According to Universal Postal Union 2017, the index for postal development of Viet Nam was only about 47.8 per cent.

A survey of the Viet Nam eCommerce and Digital Economy Agency last year also showed that 40 per cent of online shoppers were not satisfied with shipping services.

In term of electronic business, only 18 per cent of Vietnamese industrial enterprises are ready for digital transformation, a survey of the Ministry of Industry and Trade revealed.

Up to 61 per cent of enterprises are still standing outside, while 21 per cent of the enterprises have had initial preparation.

In terms of e-commerce, the market has seen rapid development in the recent years with an annual growth of 25 per cent.

The size of the business-to-customers (B2C) e-commerce market in Viet Nam reached about US$62 billion last year.

Of which, the average value of online shopping per person was $186 last year.

President of the BCSI Institute Council Nguyen Van Nam emphasised that to survive and develop in the digital era, enterprises had to change and accelerate the application of information technology into their production and management system.

Vo Tri Thanh, director of the institute, said that in the integration era with the trend of "digitisation" in all fields, enterprises could not stay still.

Previously, the economy was based mainly on companies, but now it is based on the public and individuals, Thanh said.

Each individual could be a programmer in today’s modern economy, he said. 

HD Mon Holdings and Indochina Capital sign agreement     

HD Mon Holdings and Indochina Capital on Thursday in Ha Noi signed a strategic partnership agreement.

Under the agreement, two subsidiaries of Indochina including Indochina Properties and Indochina Strategic would provide strategic consultancy and act as the official distribution agent for HD Mon’s new high-end project in central My Dinh.

According to HD Mon Holdings, the project is under construction and will be completed by 2021, with 891 high-end apartments and penthouses.

“Phase 2 of the Mon City project marks a turning point, with HD Mon bringing a new definition of living standards and quality, as well as providing world-class experience for residents and investors,” said Nguyen Anh Tuan, CEO of HD Mon Holdings.

The partnership is considered an important step for the project, as Indochina Capital has experience and success in the hi-end real estate market.

Michael Piro, Indochina Capital’s managing director said they would act as a bridge connecting investors and home-buyers with Mon City.

Established in 1997, HD Mon Holdings operates in the property sector. Currently, the company has invested in projects of Mon City’s phase 2, Mon Centre, Mon Bay and a large-scale five-star golf and hotel resort in Quang Ninh Province’s Van Don District. 

State fund and Viettel to offload entire holding at Vinaconex     

The State Capital Investment Corporation (SCIC) and Military-run telecoms group Viettel have decided to offload their entire stakes, collectively at 79 per cent, in the Viet Nam Construction and Import-Export Joint Stock Corporation (Vinaconex).

The share sale will be held under the form of a public auction on November 22 on the Ha Noi Stock Exchange, with a starting price of VND21,300 (US$0.9) per share.

SCIC will be offloading its 254.9 million shares, or 57.71 per cent stake in Vinaconex, while Viettel will sell 94 million shares, representing 21.28 per cent of the construction firm.

The buyer would have to purchase all shares of each offered batch. The foreign ownership limit in Vinaconex is 49 per cent, which means an overseas investor who wants to have a meaningful stake in the company can only go for Viettel’s offer.

Shares in Vinaconex, listed on the northern bourse as VCG, traded at VND18,800 on Friday.

Established in 1988 as a wholly State-owned company, Vinaconex was privatised in 2006 and then listed in 2008.

The company’s main business is construction and installation, accounting for over 60 per cent of the company’s revenue. Other business activities include real estate, industrial production, design consultancy, labour export, import-export, education and training.

Projects implemented by Vinaconex in 2018 in Ha Noi include Apartment Building 2B - Vinata Tower; apartment-commercial-office building complex at 25 Nguyen Huy Tuong Street; renovation project of old apartment at 93 Lang Ha Street and Hoa Lac Hi-tech Park project.

Currently, Vinaconex is managing and using a total of 98,901 square metres of land allocated in the provinces and cities of Ha Noi, Da Nang, Thanh Hoa and Vinh Phuc. It also manages 1.19 million square metres of leased land in Ha Noi and HCM City.

In the first six months of 2018, Vinaconex recorded net revenue of VND4.35 trillion ($186.11 million), up 4 per cent year-on-year, of which the main sources of income were construction activities, real estate development and industrial production.

Moreover, the company’s gross profit declined by 30 per cent in the period to VND450 billion, resulting in its pre-tax profit of VND235 billion, down 38 per cent year-on-year.

As of June 2018, Vinaconex’s total assets reached VND20.17 trillion, down 7.2 per cent compared to the beginning of the year, while its payables were equivalent to 63 per cent of the total asset value. 

Uniqlo acquires stake in Vietnamese firm     

Japan’s Uniqlo has acquired a 35 per cent stake in Ha Noi-based women’s fashion products maker Elise Joint-Stock Company.

The deal has been finalised, with Elise getting tens of millions of dollars – though the exact price has not been disclosed – much higher than its entire charter capital.

Elise has more than 100 stores across the country.

With this, Uniqlo seems to have taken a step closer to opening its first store in Viet Nam next year.

Recently it has announced plans to open the store in HCM City next year.

The store will be operated through a joint venture between Fast Retailing and Mitsubishi Corporation, who will own 75 per cent and 25 per cent of the company.

Uniqlo said it plans to double the number of its stores in Southeast Asia and Oceania to around 400 by 2022. Its global network spans 20 markets in Asia, Europe, North America and Australia with around 2,000 stores.

It aims to triple its revenue in Southeast Asia to 300 billion yen (US$2.67 billion) for the year ending in August 2022.

On August 24 Uniqlo launched a store in Sweden, the home of H&M.

Uniqlo’s arrival in Viet Nam is expected to intensify the competition for foreign brands like Zara and H&M, which came in 2016 and 2017.

Currently Vietnamese can only buy Uniqlo products from local retailers or have to order them from Japan.

A number of international brands have entered Viet Nam since the country opened up its retail market to foreign investment in 2015.

The fashion market is estimated to grow to more than $3.8 billion this year and to over $5 billion by 2021, according to BMI Research.

Rain dampens Q3 thermal profit     

Most thermal power companies have reported lower earnings in the third quarter of 2018 as increasing rainfall reduces demand for heat energy.

Cam Pha Thermal JSC (UPCoM: NCP) recorded losses of VND102 billion (US$4.4 million) in the third quarter after having suffered VND201.3 billion in the second quarter.

The losses made over the past two quarters have resulted in accumulated losses of VND303 billion for the firm during the nine-month period.

According to Cam Pha Thermal JSC, the rainfall increased in the third quarter, leading to less demand for heat energy while the company had to suspend its plant operations for maintenance.

The company also had to pay for fixed costs such as amortisation of its fixed assets, lending interest, power plant maintenance and difference in exchange rates.

Those two factors made the firm’s revenue fall 10.2 per cent year on year while its financial and production costs rose by 65 per cent and 5 per cent respectively over one year.

Hai Phong Thermal Power JSC (UPCoM: HND) also encountered the same problems as it recorded a 10 per cent decline in third-quarter revenue, amounting to VND1.76 trillion.

In the quarter, the company posted a loss of VND148 billion while making a profit of VND106 billion in the same time of last year.

After nine months, the company saw its profit drop by about 50 per cent year on year to VND179.8 billion.

Hai Phong Thermal Power JSC explained that as demand for thermal power was low in the third quarter, selling prices for the product were also low.

In addition, the company had to separate one of its turbines for maintenance so its actual production was just 76 per cent of the capacity, leading to low revenue and profits from the power market.

At the end of September, Cam Pha Thermal Power JSC and Hai Phong Thermal Power JSC had VND4.49 trillion and VND7.9 trillion worth of loans respectively.

In other cases, Ba Ria Thermal Power JSC (HoSE: BTP) and Ninh Binh Thermal Power JSC (HNX: NBP) reported losses of VND19.3 billion and VND3.6 billion in the third quarter despite having been profitable in the previous two quarters.

Ba Ria Thermal Power JSC reported VND206 billion in third-quarter revenue, down 44 per cent year on year. The other firm had its revenue fall 11 per cent year on year to only VND2.2 billion.

The two companies suffered losses because their financial and management expenses overwhelmed their revenues.

Another thermal power company, Pha Lai Thermal Power JSC (HoSE: PPC), posted the three-quarter lowest net revenue of VND1.26 trillion, which was down 14.4 per cent year on year.

However, the company was able to remain profitable with its third-quarter net profit rising 7 per cent to VND163 billion due to the strong reduction of financial cost. 

Techcombank posts 61 per cent pre-tax profit hike     

The Viet Nam Technological and Commercial Joint Stock Bank (Techcombank)’s pre-tax profits hit VND7.77 trillion (US$332.9 million) in the first nine months of the year, posting 61 per cent increase over the same period last year.

Its pre-tax profit growth far exceeded total operating income (TOI) growth as a result of the bank’s efforts to clear its Viet Nam Asset Management Company (VAMC) balance.

Techcombank on Wednesday announced its business results, continuing to showcase its ability to deliver sustainable growth and best-in-class business performance not only in Viet Nam but also in the region.

Its TOI in the first nine months of 2018 was nearly VND13.3 trillion, an increase of 25 per cent from the same period last year.

In addition, the bank continued to diversify its revenue base in line with its strategic direction. Its share of income from credit activities declined from 53 per cent to 48 per cent.

The balance sheet structure is also transforming in line with the bank’s strategic direction. As of the end of September, Techcombank’s ratio of short-term funding to medium- and long-term lending dropped as low as 34.17 per cent, adhering to the State Bank of Viet Nam (SBV)’s plan to reduce this ratio to 40 per cent by January 2019. This will safeguard the bank’s ability to serve customers before the end of the year without facing mid-to long-term constraints by the SBV.

Techcombank’s Capital Adequacy Ratio (CAR) at the end of September 2018 was 14.33 per cent, 2.31 per cent higher than the same period last year thanks to equity growing faster than risk-weighted assets. This reflects the bank’s prudent approach in managing credit growth and following the SBV’s guidance. 

TTC Sugar inks deal with UK firm     

TTC Attapeu Sugar Cane Sole Co., Ltd, a subsidiary of Thanh Thanh Cong Bien Hoa JSC (TTC Sugar), will export its sugar to the European market following an agreements with the UK’s ED&F Man Sugar.

The British company, the world’s third largest sugar merchant, signed two memorandums of understandings on October 26 for buying products TTC Attapeu makes in Laos, including organic golden cane sugar and golden cane sugar, for the next five years and exporting TTC Sugar’s products from the 2018-19 sugarcane crop to the European market.

Organic golden cane sugar is produced by TTC Attapeu to organic standards from planting to processing, without using GMO (genetically modified organism) crops, chemical fertilisers or pesticides, bleaching powder or other chemicals.

The factory has ISO 9001:2008 and ISO 14001: 2004, FSSC (Food Safety System Certification), HALAL, and Kosher certification. Besides, its products are packaged in environment-friendly materials.

The product has been certified by Control Union as meeting USDA and EU organic standards, and qualifies for exporting to lucrative but fastidious markets such as North America.

Besides, the tie-up with ED&F Man Sugar will take to the European market TTC Attapeu’s Golden Cane Sugar, which is made from 100 per cent pure sugarcane using the modern crystallisation method and without artificial colours and odours to keep its natural flavour.

Pham Hong Duong, TTC Sugar’s chairman, said: “The EU is currently a leading market for organic products and also a huge market for Viet Nam’s agricultural products. Therefore, TTC Sugar decided to choose ED&F Man as a strategic partner to bring our TTC organic sugar brand … to the European market.”

TTC Sugar, which owns 62,300 hectares of land for growing sugarcane, offers diverse sugar products with a focus on high-value product lines such as organic sugar and premium refinery sugar besides sugar by-products and post-products.

In 2016 TTC Sugar bought a 7,000ha sugarcane farm in Attapeu Province (Laos) from Hoang Anh Gia Lai in an M&A deal. TTC Attapeu has focused on cultivating sugarcane on a large scale that enabled a shift to organic production.

In the 2018-19 crop it has nearly 1,000 ha of certified organic farm, and the company expects to produce over 40,000 tonnes of organic sugar by 2022, he said.

ED&F Man Sugar, established in 1783 in London, specialises in supply, transportation and distribution of agricultural products like coffee, sugar, molasses, beans, and grains. 

Dong Nai FDI smashes yearly target     

The southern province of Dong Nai has drawn approximately US$1.6 billion in foreign direct investment (FDI) as of October 23, 60 per cent higher than the goal of $1 billion set for this year.

According to the provincial Department of Planning and Investment, the province has licensed 101 new FDI projects, worth a total of $804 million, since the beginning of 2018 while 87 others have received additional investment of $790 million.

Among the newly-licensed projects are a $60-million undertaking by Singapore-based KCC Vietnam Co Ltd and a $45-million project by Samyang Vietnam Co Ltd from the Republic of Korea (RoK) at Nhon Trach 6 Industrial Park, and a $40-million fabric manufacturing project by RoK’s Hi Knit Co Ltd from at Nhon Trach 6A Industrial Park.

Those with extra investment include the Bosch Gasoline Systems – HCP factory of the Netherlands at Long Thanh Industrial Park, the tire factory by Japan-based Kenda Rubber Industrial Co Ltd at Giang Dien Industrial Park and the pharmaceutical project by OPV Pharmaceutical JSC from Singapore at Bien Hoa II Industrial Park, which got an additional $71 million, $56 million and $47.7 million, respectively.

Most of the projects are in supporting industries that are environmentally friendly with high technology.

Dong Nai has so far licensed 1,853 FDI projects with total registered investment of $33.4 billion, of which 1,371 projects worth $28.3 billion are operational while the others had their licences withdrawn.

Topping the list of investors are those from the Republic of Korea, Taiwan (China) and Japan.

In 2017, the province attracted more than $1.3 billion in FDI, with the Republic of Korea the largest foreign investor. In recent years, it has prioritised environmentally friendly projects using high technology and skilled labourers. 

Quang Ninh expects to welcome Vietnam’s 15 millionth foreign tourist