Vietnam to feature among 5 fastest growing economies by 2030: HSBC

By 2030, Vietnam`s GDP is expected to reach around US$500 billion from over US$200 billion in 2018.

Vietnam, along with Bangladesh, the Philippines, Malaysia and Pakistan, are predicted to be the five fastest-growing economies out of 75 developed, emerging and frontier economies included in HSBC's projection by 2030. 

Under HSBC's latest report, Vietnam is likely to be the fourth biggest mover in the global GDP ranking (47th to 39th), ahead of Malaysia in the top five in subject. So that by 2030, the contribution to global growth from emerging Asia excluding China will be converging on that of the whole of the group of countries currently classified as developed by MSCI. 

By 2030, Vietnam's GDP is expected to reach around US$500 billion from over US$200 billion in 2018 and GDP per capita of US$2,015, while trade continues to remain a vital part of the economy, accounting for 184.7% of GDP.

Meanwhile, Vietnam is also included in the top 10 countries that would be the most vulnerable to climate change in 2030, which is part of HSBC's view that the fastest growing economies are also the ones most at risk from climate change. 

The trend of the past five years, of just below 3% global growth, looks like it could be sustainable, implying that by 2030, global GDP is about 40% higher than in 2017. Growth in both emerging markets (EM) and developed markets (DM) is projected to be a little weaker than over the past decade but EM now makes up a larger share of the world. 

Over the past decade EM accounted for about half of global growth and on HSBC modelled estimates, over the coming decade or so, roughly 70% of global growth will be from countries currently described as emerging. 

There is also continued room for catch-up going beyond 2030. Even in this world, and after doubling in 2007-2030, average EM GDP per capita is set to remain just a fraction of that in the west. According to HSBC's projections, it will still be less than 15% of the developed economy average (roughly 10% today) and China's will be below 30%. 

China is set to continue to be the single biggest contributor to global growth over the next decade and will have become the world's largest economy by 2030. 

One of the most striking rises amongst the rankings will be by India, which is set to become the world's third-largest economy in just over a decade, up from seventh today - leap-frogging the second- and third-largest developed economies, which are Germany and Japan. 

Actual FDI in Vietnam up 6% to US$13.25 billion in 9 months

Foreign direct investment (FDI) commitments in the first nine months totaled US$25.37 billion, nearly unchanged from a year earlier, according to the investment ministry.

As of September 20, disbursement of FDI projects jumped to US$13.25 billion, representing an increase of 6% year-on-year, a report of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment has shown. 

According to the agency, 2,182 new projects have been approved with total investment capital of US$14.1 billion between January and September, down 3% from the corresponding period last year, while 841 existing projects have injected an additional US$5.5 billion, down 17.9% from the same period last year. 

Meanwhile, in the nine months through September, 5,275 projects have had US$5.7 billion in capital contributed by foreign investors, up 36.8% year-on-year.

Investors have invested in 18 fields and sectors, in which manufacturing and processing continued to attract substantial attention with investment capital of US$11.3 billion, accounting for 44.6% of total capital approvals.

Real estate was the second most heavily invested, with US$5.8 billion, or 23% of total registered capital, followed by retail and wholesale with US$2.1 billion or 8.3%.  

The data shows that 104 countries and territories invested in Vietnam in the nine-month period, with Japan taking the lead with US$7 billion, accounting for 28% of total investment. South Korea came second with US$5.6 billion or 22.4% of total investment, while the third place belonged to Singapore with US$3.6 billion or 14.4%.

Among 59 cities and provinces having received foreign investment, Hanoi attracted the largest portion of registered capital with US$5.8 billion, or 22.9% of total investment, followed by Ho Chi Minh City with US$4.2 billion or 16.6% of the total investment, and Ba Ria - Vung Tau with US$2.1 billion, accounting for 8.5% of total investment.  

The biggest-ticket projects in six months include the smart city project in Dong Anh district, Hanoi with total investment capital of US$4.138 billion; the US$1.2-billion polypropylene manufacturing plant by Hyosung Corporation (South Korea) located at Cai Mep Industrial Zone in Ba Ria - Vung Tau; the Laguna hospitality project with additional fund of US$1.12 billion from Singaporean investors.

Additionally, Vietnam licensed the US$600-million Lotte Mall Hanoi project that embraces a hotel, apartment, office, and trade center complex; and the LG Innotek Hai Phong facility with additional capital of US$501 million for manufacturing camera modules.

Thaibev to receive US$21.42 million in cash dividend from Sabeco

Sabeco is calculated to pay a total of VND962 billion (US$41.21 million) on dividend.
ThaiBev, which owns a 53.59% stake in Saigon Beer Alcohol Beverage Corp (Sabeco) through its local unit Vietnam Beverage, is expected to receive VND500 billion (US$21.42 million) of 2018 dividend in cash from Vietnam's largest brewer. 
 
Sabeco's board of directors on September 25 issued a resolution approving the first prepayment of 2018 dividend in cash. 

With payment rate of 15%, existing shareholders will receive VND1,500 (US$0.064) for every share owned. Total payment amount this time is estimated at VND962 billion (US$41.21 million). 

ThaiBev - controlled by tycoon Charoen Sirivadhanabhakdi - is expected to receive over VND500 billion (US$21.42 million) as the company currently holds 343 million shares or 53.59% stake at Sabeco. 

As the second largest shareholder of Sabeco, Vietnam's Ministry of Industry and Trade is set to receive VND346 billion (US$14.82 million) for a 36% stake under its ownership. 
Sabeco expected the rate for its prepayment of 2018 dividend to be 35%, which will be carried out in two tranches. After the first payment date of October 31, the brewer will pay the remaining 20% in December. 

Sabeco has set its pre-tax profit target in 2018 at VND4 trillion (US$173.2 million), down 19% year-on-year, following a decline in Vietnam's beer consumption. Nevertheless, the company targeted its market share to increase by five percentage points from the current 40%.
In 2017, Sabeco alone produced 1.77 billion liters of beer, an increase of 6.6% year-on-year, while the second largest domestic brewer, Habeco (18% market share), brewed 657.6 million liters, down 6.5%.

Cyber security and privacy are some of the most challenging issues that Vietnam are facing during the digital transformation process, VietnamFinance reported.

Vietnam has set the target of completing e-finance services by 2025, which are based on the platform of modern digital finance backed by open data and digital finance ecosystem, said Deputy Finance Minister Vu Thi Mai. 

By that time, the finance sector will play the role of facilitator, connecting and sharing of data and digital services, meeting demands for public finance transactions and accessing digital information of the government, citizens and enterprises, stated Mai at a conference on September 26. 

Nguyen Thanh Hung, deputy minister of information and communications, added that the Fourth Industrial Revolution is an irreversible trend that Vietnam must be actively involved with. 

In Vietnam, the finance, information and communication sectors have been well-equipped towards digital transformation on the foundation of 4.0 technologies such as Big data, Internet of Things (IoT), Artificial Intelligence (AI), among others, Hung continued. 

Moreover, block-chain has been an influential technology that could be applied in most industries, but this is the finance and banking sector where the technology can be use commonly to enhance transparency. 

Hung, however, pointed to some challenges for Vietnam during the digital transformation process, in which cyber security and privacy issues are among the most important. Hung referred to the incident involving technical fault of the Ho Chi Minh City Stock Exchange (HoSE) leading to its disrupted service in two days in early 2018.  

Last weekend, a number of services, including major intermediary payment services have  been unavailable in hours due to issue related to data center. This is an important issue during the process of digital transformation, Hung continued. 

A critical factor during the process is database, according to Hung. However, there remain challenges with regard to human resources, skills, awareness, safety and cyber security. Issues between traditional taxis and ride hailing firms such as Uber and Grab, or cases of cryptocurrency frauds are notable examples for such challenges. 

Vinacomin sees pre-tax profit double in 6 months

Vietnam National Coal and Minerals Group (Vinacomin)`s revenue in 1H2018 stood at VND50.77 trillion (US$2.16 billion), up 27% year-on-year, of which, coal and mineral mining contributed a combined of over 80% of total revenue.

Vinacomin, Vietnam`s largest coal producer, said its pre-tax profit reached VND3.06 trillion (US$130.67 million) in the first six months of 2018, doubling the number recorded year-on-year, according to the group`s consolidated financial statement.

According to the report, Vinacomin's revenue in the six-month period stood at VND50.77 trillion (US$2.16 billion), up 27% year-on-year.  

Of the total, coal and minerals mining contributed 65% and 15.6% to the revenue, reaching VND33.06 trillion (US$1.41 billion) and VND7.94 trillion (US$339.11 million), respectively, while electricity production accounted for 11.3% for VND5.72 trillion (US$244.3 million).

Vinacomin's gross profit climbed 21.6% year-on-year to VND9.92 trillion (US$423.7 million) in the January - June period.

In the first six months of 2018, Vinacomin had financial expenses of VND2.90 trillion (US$123.85 million), representing an increase of 8.8% year-on-year, sales expenses of VND1.91 trillion (US$81.56 million), up 29%, and management expenses of VND2 trillion (US$85.41 million), down 24%. 

As of June 30, the group's total assets were valued at VND140.93 trillion (US$6.02 billion), up VND700 billion (US$29.9 million) compared to the beginning of the year. Of the sum, fixed assets were worth VND80.64 trillion (US$3.44 billion) or 57%, inventory VND16.21 trillion (US$692.38 million) or 11.5%, long-term assets in progress of VND11.6 trillion (US$508.6 million) or 8.2% and short-term receivables of VND11.53 trillion (US$492.57) or 8.2%. 

Vinacomin's equity reached VND42.67 trillion (US$1.82 billion) during the period, up 4.5% compared to the beginning of the year. The group's payables were VND98.26 trillion (US$4.19 billion), slightly down 1.1% year-on-year.

Aeon parts from Vietnam's Fivimart as losses linger

The cooperation with Aeon was supposed to boost efficiency in Fivimart`s corporate governance, promoting brand and expanding the network, but reality didn`t meet expectations.

Aeon, a major Japanese retailer, and Nhat Nam Trade Company - owner of the Fivimart supermarket chain, have agreed on the transfer of the Fivimart chain to a domestic company on September 27, ending the four-year partnership between the two, Tri Thu Tre reported. 

Consequently, Aeon is expected to offload 30% stake in Fivimart for a third party. However, the move would not have any impact on its current business in Vietnam.

Detail of the transaction was not disclosed. 

On the same day, Fivimart announced the change of its brand identify. Starting September 28, Fivimart will no longer use Aeon logo beside its own logo in public. 

Rumor about the "divorce" between Fivimart and Aeon started on the market in early September, which reportedly was due to inefficient cooperation. 

Since the begin of the partnership in 2015, Fivimart increased its supermarkets from 10 to 23 in 2017, while revenue jumped from VND1.07 trillion (US$45.64 million) during the 2015 - 2017 period. 

However, Fivimart posted a loss of VND60 billion (US$2.56 million) in 2015, which later widened to VND96 billion (US$4.09 million) a year later. In 2017, the local supermarket chain reported a loss of VND23 billion (US$981,318), resulting in an accumulated loss of VND197 billion (US$8.4 million). 

The cooperation with Aeon was supposed to boost efficiency in Fivimart's corporate governance, promoting brand and expanding the network, which in reality did not go according to plan. 

Fivimart's cost of goods sold  in the 2016 - 2017 period was over VND1 trillion (US$42.68 million), equivalent to 80% of total revenue, according to the company's financial statement. 

Moreover, administrative and financial expenses remain at a high level, reaching VND272 billion (US$11.6 million) and VND11.8 billion (US$503,612), respectively. 

After ending its cooperation with Fivimart, Aeon still maintains the business partnership with Citimart, of which the Japanese retailer acquired a 49% stake in 2015. However, Citimart also reported a loss of VND91 billion (US$3.88 million) in 2015 and VND33 billion (US$1.4 million) in 2016, resulting in an accumulated loss of VND157 billion (US$6.7 million) at the end of 2016.

Aeon considered Vietnam's retail market has huge growth potential and plans to establish 20 large-scale shopping malls in the country by 2020. In addition to the existing four shopping malls, Aeon will shortly launch the other two in Hai Phong city and Ha Dong district (Hanoi). 

Vietnam Electricity's after-tax profit down 31.5% in Jan - Jun

As of June 30, Vietnam Electricity (EVN)`s total assets reached VND702.24 trillion (US$30.05 billion), slightly up 1% compared to the beginning of the year.

EVN, the sole distributor of electricity in the country, reported an after-tax profit of VND1.01 trillion (US$43.21 million) in the first half this year, down 31.5% year-on-year, according to the power company's consolidated financial statement.  

In the first six months of 2018, EVN's revenue reached VND161.61 trillion (US$6.91 billion), up 15% year-on-year, while its gross profit climbed 19% to VND19.21 trillion (US$821.96 million). 

During this period, the power company's income from financial activities stood at VND2.43 trillion (US$103.98 million), down 34% year-on-year, but financial expenses increased by 12% to VND11.9 trillion (US$509.23 million). 

Additionally, sale expenses jumped 4.5% year-on-year to VND2.93 trillion (US$125.37 million) and administrative expenses were up 12% to VND5.3 trillion (US$226.79 million). 

As of June 30, EVN's total asset value reached VND702.24 trillion (US$30.05 billion), slightly up 1% compared to the beginning of the year. Of the sum, fixed assets were worth VND578.02 trillion (US$24.72 billion) and long-term assets in progress VND59.74 trillion (US$2.55 billion). 

EVN's equity reached VND214.51 trillion (US$9.17 billion), slightly up 1% compared to the beginning of the year. The company's payables slid by 0.3% year-on-year to VND487.73 trillion (US$20.86 billion).

In 2018, the EVN set revenue target of VND328.9 trillion (US$14.13 billion), up 8.8% year-on-year, and VND117.84 trillion (US$5.06 trillion) for investment. 

With regard to the equitization process of EVN's subsidiaries, namely Power Generation Corp. 1 and 2 (Genco 1and Genco 2), the process is scheduled to be on January 1, 2019, subject to Prime Minister's approval. 

In the remaining months of 2018, EVN will withdraw all capital from affiliates such as Finance Joint Stock Company, Thu Duc Electro Mechanical Joint Stock Company, Dong Anh Electrical Equipment Corporation - Joint Stock Company, Thuan Binh Wind-Power Joint Stock Company, Power Engineering Consulting Joint Stock Companies 3 and 4.

Growth of social impact business sector is vital for Vietnam: UNDP

This is a win-win model that has many values and entrepreneurs create both economic profit and positive impact on society while mitigating negative impact on the environment.

Businesses which balance a social mission with profit have a direct and lasting impact on the communities in which they operate. In the case of Vietnam, the combination is vital to achieve the United Nation Sustainable Development Goals (SDG), stated Catherine Phuong, UNDP's Assistant Country Director in Vietnam. 

According to Phuong, Social Impact Business (SIB) is understood as "organizations that have both trading activities and a commitment to positively impacting society/environment as the two central tenets of their strategic operations."

They  can create the value necessary to grow their business, whilst scaling up their social impact, Phuong said at the launch of UNDP's report on sustainable business model on September 27.

"This involves developing a more sustainable and inclusive approach to economic growth, through innovation and technology, improving productivity whilst addressing key social and environmental challenges faced by the country," Phuong added. 

However, as SIB sector accounts for only 4% or 22,000 of the total private sector, it is therefore critical that UNDP support the growth of this sustainable business model in Vietnam and recognize such enterprises and entrepreneurs as key partners to the achievement of the SDGs, Phuong stressed.

A typical SIB in Vietnam is micro-sized in personnel and revenue. But SIBs are leaders in promoting diversity and inclusion. Almost all SIBs employ female staff and up to three fourths of them have people with disabilities in their workforce, which is why they are highly inclusive, she stressed.

UNDP's statistics showed that 70% of SIBs are making profit. 59% of SIBs in Vietnam choose to balance social and economic objectives, whilst 34% focus on their social mission. Jobs, Well-being and Environmental protection make up the top three areas of impact for SIBs.

Tran Tho Dat, rector of the National Economic University (NEU), said that business for society and sustainable development is the business model of the 21st century. "This is a win-win model that has many values and entrepreneurs create both economic profit and positive impact on society while mitigating negative impact on the environment," he said.

Vietnam has a vibrant and rapidly growing ecosystem for SIBs, stated Truong Thi Nam Thang, lead researcher of the report from the NEU.

Vietnam is one of the few countries with legal recognition for social enterprises (SE) - a crucial model for SIB sector, as noted in Article 10 of the Vietnam Enterprise Law 2015. Nevertheless, there has been limited efforts to develop specific policies or design activities to foster the growth of the SE sector to date, Thang added. 

"Currently, 84% of SIBs are registered under the Enterprise Law 2015, of which 72% are registered as for-profit enterprises with only 12% registered as SEs," she informed.

Moreover, shortage of capital and human resource capacity, as well as recruiting staff, remain the biggest challenges for the SIB sector in Vietnam.

However, SIBs in Vietnam are optimistic about the prospects for growth, with only 1% believing that revenues are likely to reduce, 7% believing that their revenues will be stable and 92% expecting to increase their income in 2018. 

According to Thang, a business that chooses to create a social impact can garner the support and recognition of the community, which can lead to growth in customers. In addition, the opportunity to network with key stakeholders, as well as good branding will soon emerge. Thang pointed out that there is a strong sense of community and support to social projects, including SIBs.

"The mindset of supporting products or services with social good, is not a new thing to people in Vietnam," she said.

The UNDP's report stated that SIBs also recognize the unique opportunity and competitive advantage presented by pursuing a social mission, with impact startups in particular uniquely placed to drive new economic models for social good, including the sharing economy, circular economy and Industrial Revolution 4.0. 

To support the growth of the SIB sector, UNDP suggested increasing access to sources of capital and other innovative financing methods for the SIB sector; strengthening the connection between SIBs and the wider private sector; and the establishment of a representative network for the SIB sector.

Business formations in Vietnam fall 21.4% m/m September

The rise in the number of business formations demonstrates that investors are likely to have gained more confidence in the domestic business climate.

As many as 9,163 new enterprises have been set up in Vietnam in September with a total registered capital of VND 84.783 trillion (US$3.64 billion), down 21.4% in number and 21.2% in registered capital from August, according to the investment ministry. 

However, compared with the same period in 2017, the number of enterprises increased by 6.4% and registered capital rose 5.2%, the General Statistics Office (GSO) announced.

In the first nine months of 2018, more than 96,611 new enterprises were established, with a total registered capital of VND963.4 trillion (USD41.3 billion), representing year-on-year rises of 2.8% and 6.7%, respectively.

Besides, nearly 22,900 firms resumed operation in the period, up by 8.5%. However, the number of firms halting operations was up by 48.1% over the same period last year to 73,103.

Together with 11,500 companies that completed the procedures for dissolution in the period, most of the firms were classified as small, with registered capital of below VND10 billion (US$430,000). This meant that on average 270 firms halted or stopped operations each day, the report said.

Vietnam has much monetary policy room to boost growth till year-end

The credit growth target has been set at 17% this year, meaning that credit can grow an additional 6-7% in the final three months.

The Vietnamese government has much room left to maneuver its monetary policy from now to the year-end to spur economic growth while putting an eye on rising inflation. 

Official data showed that total lending in the banking system expanded 9.52% year to September 20, lower than an 11.02% expansion in the same period last year. The credit growth target has been set at 17% this year, meaning that credit can grow an additional 6-7% in the final three months.

Total outstanding loans in the banking system rose 7.86% in the first half this year, reaching VND6,827 trillion dong (US$291 billion), according to data of the State Bank of Vietnam (SBV), the country’s central bank.

Meanwhile, the total money supply increased 8.74% year to September 20, slower than a 9.59% expansion in the comparable period last year. Deposits at banks grew 9.15% in the nine-month period, also slowing down from a 10.08% increase a year earlier.

The SBV has stated it would stick to a policy to rein credit growth from now to the year-end, stressing that it would not loosen the credit growth quota for any commercial banks although many lenders have seen their lending room running up.

The Asian Development Bank said in an update last week that going forward, the SBV intends to pursue a more flexible exchange rate regime with the ultimate objective of gradually shifting its monetary policy framework from focusing on exchange rate stabilization and monetary-credit targeting to inflation targeting.

“Building on these recent measures and future policy intentions, there is merit in a tighter monetary policy in the near term to rein in inflation,” ADB noted.

Vietnam’s economic growth hit an eight-year high of 6.98% in the first three quarters this year, above the government’s target of 6.7% for the whole year.

Hanoi's GDP grows 7.17% in 9 months

Among 59 cities and provinces having received foreign investment, Hanoi attracted the largest amount of US$6.26 billion in the first nine months of 2018.

Hanoi's gross regional domestic product (GRDP) in the first nine months of 2018 expanded 7.17%, up from the 6.87% growth recorded in the same period last year, stated Nguyen Manh Quyen, director of the municipal Department of Planning and Investment.  

The service sector in the city posted grew 7.11%, the industrial and construction sector 7.81%, and agriculture, forestry and fishery  3.37% in the nine-month period, Quyen informed at a meeting on September 28.

The city's consumer price index (CPI) in September increased by 1.08% month-on-month and up 5.16% year-on-year. Overall, the index in the January - September period expanded 3.99% year-on-year. Ten out of 11 commodity groups, which are components of the basket for CPI calculation, witnessed monthly hikes in prices.

Post and telecommunications service price was the only commodity group and service that experienced a decline of 1.38%.

Exports in nine months climbed 21.6% year-on-year to US$10.51 billion, while imports recorded US$22.49 billion, up 6.5% year-on-year. This resulted in a trade deficit of US$11.98 billion during the period. 

Hanoi welcomed a total of 19.7 million tourists in the first nine months, up 9.2% year-on-year. Of the total, 4.3 million were foreign visitors, up 20% year-on-year, resulting in revenue from tourism-related services of VND57.3 trillion (US$2.46 billion), up 7.3% year-on-year. 

Total social investment as of end-September reached VND219.4 trillion (US$9.44 billion), up10.3% year-on-year. Among 59 cities and provinces having received foreign investment, Hanoi attracted the largest amount of US$6.26 billion, 5.4-fold higher than the figure recorded in the same period of last year. 

In the first nine months, Hanoi had a total of 18,68 newly established enterprises with registered capital of combined VND204.53 trillion (US$8.8 billion), up 39% year-on-year in terms of capital and 1% in quantity. As present, Hanoi has a total of 248,750 operational enterprises. 

In 2018, Hanoi aims to achieve a GRDP growth target of 7.3-7.8%. Along with this target, Hanoi strives to grow its service sector by 6.9-7.5% and the industry and construction sector by 8.2%-8.7%. Additionally, export turnover growth is expected to reach 7.5-8%.

Hanoi budget surplus reaches US$5.05 billion in 9 months

During the January - September period, Hanoi collected VND166.19 trillion (US$7.15 billion), equivalent to 69.7% of the year`s estimate and up 13.7% year-on-year.

In the first nine months of 2018, Hanoi recorded budget surplus of VND117.54 trillion (US$5.05 billion), stated the municipal Statistics Office. 

During the January - September period, Hanoi collected VND166.19 trillion (US$7.15 billion) for the state budget, equivalent to 69.7% of the year's estimate and up 13.7% year-on-year.

On breaking down, collections from domestic taxes and fees in the period stood at VND151.38 trillion (US$6.51 billion) or 70% of the year's estimate and up 15.7% year-on-year, while revenue from crude oil exports totaled VND2.3 trillion (US$98.96 million), or 123.4% of the year's estimate and up 36.6% year-on-year. 

Of the total, the state sector contributed VND29.27 trillion (US$1.25 billion), equivalent to 55.4% of the estimate and up 9.9% year-on-year, and foreign invested firms VND17.97 trillion (US$773.21 million), up 6.4% year-on-year and equivalent of 58.8% of the estimate. 

Meanwhile, Hanoi's state budget expenditures in the first nine months amounted to VND48.65 trillion (US$2.09 billion), of which, expenditure for development investment reached VND21.11 trillion (US$908.32 million) or 50.1% of the estimate, and regular spending VND27.1 trillion (US$1.16 billion), or 61.5% of the estimate.

Moreover, Hanoi's export turnover in the first eight months reached US$10.51 billion, up 21.6% year-on-year, while imports recorded US$22.49 billion, up 6.5% year-on-year. This resulted in a trade deficit of US$11.98 billion during the period. 

In 2018, Hanoi aims to achieve a GRDP growth target of 7.3-7.8%. Along with this target, Hanoi strives to grow its service sector by 6.9-7.5% and those of industry and construction sectors by 8.2%-8.7%. Additionally, export turnover growth is expected to reach 7.5-8%.

Vietnam, Mongolia medical firms strike deal

The cooperation between Monopole Pharmaceutical Company and Vietnam Quinessence Trading Joint Stock Company will contribute to enhancing the business efficiency between the two companies and the economic cooperation between Vietnam and Mongolia.

Vietnam's Quinessence Trading Joint Stock Company and Mongolia's Monopole Pharmaceutical Company on September 30 inked a cooperation agreement, becoming the first businesses of the two countries to make the move.

The deal would pave way for other businesses to enhance ties in the future, said Vietnamese Ambassador to Mongolia Doan Thi Huong at the signing ceremony in Ulaanbaatar city. 

The agreement would contribute to boosting trade between Vietnam and Mongolia in line with the 16th session of the Intergovernmental Committee in August 2017 in Ulaanbaatar.

At the signing ceremony, Director of Monopole Pharmaceutical Company, Dr. Galbaa Davkharbayar, said that with modern production lines, on the basis of clean materials from the Mongolian plateau, Monopole Pharmaceutical Company specializes in producing functional food like Mongolian mori bone that has been exported to some developed markets.

The cooperation between Monopole Pharmaceutical Company and Vietnam Quinessence Trading Joint Stock Company will contribute to enhancing the business efficiency between the two companies and the economic cooperation between Vietnam and Mongolia, Dr. Galbaa Davkharbayar added.

He also suggested that the Vietnamese embassy and the Vietnamese government create favorable conditions for the two businesses’ cooperation.

Ambassador Doan Thi Huong visited the production facility of Monopole Pharmaceutical Company. Photo: Le Chien

Ambassador Doan Thi Huong visited the production facility of Monopole Pharmaceutical Company. Photo: Le Chien

For his part, pharmacist Phan Van Hieu, expert of Vietnam Quinessence Trading Joint Stock Company said that through the connection of the Vietnamese embassy in Mongolia, the company got to know Monopole Pharmaceutical Company’s precious products like Mongolian mori bone.

The company hopes to bring the product to Vietnamese consumers, contributing to improving their health and well-being. At the same time, it contributes to enhancing economic and cultural exchanges between Vietnam and Mongolia, Hieu stressed.

Speaking at the signing ceremony, Vietnamese Ambassador to Mongolia Doan Thi Huong said that the cooperation signing between Monopole Pharmaceutical Company and Vietnam Essence Joint Stock Company is just the beginning.

The two sides need to keep efforts for building trust to not only bring benefits to businesses, contributing to boosting trade between the two countries, but more importantly, contributing to enhancing the traditional good relationship between Vietnam and Mongolia. 

The success of the two businesses is the most practical activity to celebrate the 65th anniversary of the establishment of diplomatic relations between Vietnam and Mongolia. The embassy will create favorable conditions for business cooperation, the ambassador stressed.

VND8.2 trillion needed to restore Thap Cham-Dalat railway

Bach Dang Company has proposed the Ninh Thuan government restore the long-forgotten Thap Chap-Dalat railway. The project can be built under a public-private partnership scheme, at a cost of an estimated VND8.2 trillion, reported Thanh Nien newspaper.

Work on the project, which was presented by the company at a meeting with Ninh Thuan authorities on September 27, is expected to start at Thap Cham Station in Ninh Thuan Province and end at Dalat Station in Lam Dong Province. The 84-kilometer rail line will be restored using the old railway tracks in accordance with approved technical standards.

Bach Dach Company is in the process of updating the plan and surveying and collecting feedback from localities to complete a prefeasibility study, which will be submitted to the relevant departments and ministries for approval.

The Thap Cham-Dalat railway was designed and constructed by the French from 1908 to 1932. The railway had 12 stations, five railroad tunnels with a total length of 1.090 meters, and two serrated railway sections stretching 14 kilometers to climb up the hills.

The railway ceased operations in 1968 and resumed service in 1975. However, it was put out of service after seven trips. In 1986, most of the tracks and crossbars were dismantled. 

The Prime Minister on August 24, 2015, issued a decision approving amendments to the general plan for developing Vietnam’s railway transport until 2020 with a vision toward 2030, including a plan to restore the Thap Cham-Dalat railway.

Bank stops financing coal-fired power-plant projects

Standard Chartered has ruled out financing any new coal-fired power plant projects across the world, saying its decision reflects the dynamism and growing affordability of alternative energy sources.

“Having previously committed to rejecting proposals to finance any new stand-alone thermal coal mines, we are now going a step further by stopping any financing of new coal-fired power plants anywhere in the world, save where there is an existing commitment,” José Viñals, group chairman of Standard Chartered, said in a press release.

He went on to say that just as mobile phones have allowed many markets to leapfrog old technologies and business models, so too can clean energy allow businesses and communities to avoid reliance on coal.

Wind turbines are being developed that are ever larger and more efficient. In the world’s second largest energy market, the United States, the cost of wind energy has dropped by two-thirds since 2009 and is expected to fall by another 50% by 2030. Meanwhile, the cost of solar electricity has slumped to US$0.10 per kilowatt hour.

According to Viñals, there is no reason why the benefits of cheap, abundant, clean energy should be confined to richer industrialized nations and not shared with emerging markets.

“We are already working with communities in our markets to develop off-grid sources of renewable energy,” remarked the Standard Chartered group chairman. “We have demonstrated our support of the Paris Agreement through our commitment to fund and facilitate clean energy projects with US$4 billion by 2020. We are already halfway to meeting that commitment.”

Since 2010, Standard Chartered has loaned at least US$1.8 billion to coal power projects, including US$820 million to projects that added 10.6 Gigawatts of additional coal power capacity. The bank was also active in syndicates for several new coal power plants prior to the policy update.

“The fact that Standard Chartered was involved in syndicates for three coal power plants in Vietnam prior to this update makes it even more impactful. That’s three dirty coal projects, which would produce almost 700 million tons of CO2 per year, that will now need to look elsewhere for finance,” Market Forces Executive Director Julien Vincent said.

This year, many foreign banks in Vietnam have updated their policies on coal lending but have failed to completely close the door on what is now considered the single largest source of greenhouse gas pollution worldwide.

Action plan approved to boost National Single Window system

The Prime Minister has approved an action plan on promoting the National Single Window (NSW), the ASEAN Single Window (ASW) and the reform of specialised inspection of import-export goods to facilitate trade activities in the 2018-2020 period.

The action plan intends to boost the implementation of administrative procedures related to import-export goods and passengers on entry and exit through the online public services (NSW).

All government agencies concerning the import-export goods and passengers on entry and exit will be connected and shared information through the NSW.

Under the action plan, it is expected that at least 80% of administrative procedures related to import-export goods and passengers on entry and exit will be conducted via NSW by 2019.

In particular, the plan aims to recognise 100% of administrative procedures conducted through the NSW by 2020.

In 2018 and following years, the number of imported goods subject to specialised inspection before customs clearance will be reduced to less than 10% while the specialised inspection of import-export goods will be comprehensively reformed.

The action plan also expected to promote the exchange and mutual recognition of electronic commercial documents among ASEAN countries and other countries under international commitments that Vietnam participates in.

Ho Chi Minh City: nine-month budget revenue up 9.88 percent

Ho Chi Minh City has collected VND 269.168 trillion for the budget in the first nine months of 2018, equivalent to 71.44 percent of this year’s plan, up 9.88 percent from the previous year, according to the People's Committee of Ho Chi Minh City.

Domestic revenue is estimated at VND 174.431 trillion, an increase of 12.97 percent from the same period last year. The figure was equal to 68.08 percent of the projection for the whole year.

Revenue from crude oil surged 46.53 percent year on year to VND 17.844 trillion, accounting for 141.96 percent of the yearly projection, while import-export activities brought in VND 76.800 trillion, equivalent to 71.11 percent of this year’s plan, down 2.03 percent from a year earlier.

Of the sum, local budget spending was at VND 39.694 trillion, equal to 45.7 percent of the yearly projection and up 8.53 percent compared to the same period last year. Meanwhile, development investment spending was VND 15.073 trillion, or 41.68 percent of the yearly estimate; and regular spending was VND 22.261 trillion, equivalent to 60.99 percent of this year’s plan.

In recent time, Ho Chi Minh City has implemented many policies and measures to create favorable conditions for stabilizing production in order to maintain economic growth and create revenues for the State budget; while the city has also regularly improved the investment environment, the supporting enterprises plans to invest in economic restructuring.

Sapa's first 5-star international hotel to open in December

Hôtel de la Coupole Sapa - MGallery by Sofitel will open in December, according to the hotel’s management group AccorHotels.

The boutique hotel is a Bill Bensley masterpiece designed by fusing local culture, French history, and Sapa’s vibrant modern ambiance into an impressive property.

Boasting incomparable views of the Sapa valley and its famous rice fields, the Hôtel De La Coupole Sapa has 249 rooms and will become a new benchmark in luxury in the up and coming destination and will change perceptions across the region. The hotel has direct access to the Mt. Fansipan cable car station, a shopping mall on the second and third floors, and a unique selection of bars and restaurants that guarantee a unique dining experience.

The All Day Dining restaurant is open all day for breakfast, lunch and dinner and features authentic local Vietnamese dishes, Japanese delicacies, and a selection of Western fare.

Absinthe Bar serves a fashionable high tea in the afternoon as well as champagne, tapas, desserts and crafted cocktails in the evening. It features a fireplace to roast marshmallows or other savory tidbits and has great mountain views.

AccorHotels is a world-leading travel and lifestyle group and digital innovator offering unique experiences in more than 4,500 hotels, resorts, and residences in 100 different countries.

With an unrivaled portfolio of internationally-renowned hotel brands encompassing the entire range from luxury to economy, from upscale to lifestyle and midscale brands, AccorHotels has been providing savoir-faire and expertise for more than 50 years.

In addition to its core hospitality business, AccorHotels has successfully expanded its range of services, becoming the world leader in luxury private residence rentals with more than 10,000 stunning properties around the world. The group is also active in the fields of concierge services, co-working spaces, dining, events management, and digital solutions.

Relying on its global team of more than 250,000 dedicated staff, AccorHotels is committed to fulfilling its primary mission: to make every guest feel welcome.