Vietnam – China International Fair 2018 opens

The Vietnam – China International Fair 2018 officially opened on November 2 at the Trade Centre of the northern border province of Lang Son under the theme of “Connectivity, Cooperation for Joint Development”.

The fair sees 300 booths of domestic and foreign organizations and firms, including 40 from China, showcasing consumer goods, handicraft products and farming machinery, among others.

Running through November 9, it serves as a chance for the sides to contact one another, promote trade, exchange expertise, showcase products, and trade goods and services. Besides, many cultural activities will be conducted and contracts signed.

Vice Chairman of the Lang Son People’s Committee Nguyen Cong Truong, who is also head of the organizing board, said the fair is held on an annual and alternative basis between the province and the Zhuang Autonomous Region, China’s Guangxi.

It is also a chance to push up trade promotion in Lang Son and help enterprises increase production and business, broaden their markets, look for partners and popularize their products, thus facilitating trade and cooperation between Vietnamese and Chinese enterprises for joint development.

Vietnamese firms actively look for chances in ASEAN market

The Entrepreneurs’ Culture Magazine, the Centre for Research, Preservation and Promotion of Vietnamese National Culture, and the Van Hien Vietnam Magazine jointly held a conference to connect the Vietnam – ASEAN business community and the Vietnam – ASEAN cultural exchange for this year in Kuala Lumpur on November 2.

Participating in the event were representatives of about 200 Vietnamese firms, artisans and socio – cultural researchers. Also present were representatives of the Malaysia – Vietnam Chamber of Commerce, the Association of the Vietnamese Enterprises in Malaysia, and artists of the host country. 

According to the organizing board, the conference aims to facilitate Vietnamese entrepreneurs and businesses in the search for cooperation chances and exploration of international market in ASEAN, first of all in Malaysia, Singapore and Indonesia, so as to work out their operation orientations for the time to come. Besides, this will also help consolidate the solidarity and friendship between Vietnam and other ASEAN countries.

Speaking at the function, Vietnamese Ambassador Le Quy Quynh said the regional integration is currently taking place in an intensive and extensive manner in all the fields. The diplomat expressed his hope that the conference will help Vietnamese firms have a more comprehensive overview on this process and work out measures to tap the huge cooperation potentials between Vietnam and Malaysia.

At the conference, representatives of Vietnamese and Malaysian firms shared their experiences in building and developing their establishments, especially the difficulties and challenges they are facing. They came to a conclusion that regional integration creates both a motivation and various challenges for the firms’ development, which requires support and assistance from authorities.

PAN Group locks foreign ownership limit at 49%     

Agriculture company The PAN Group Joint Stock Company decided to cap its foreign ownership at 49 per cent in an effort to keep the company a domestic firm.

This decision was approved at the extraordinary shareholders’ meeting on October 26.

Previously, The PAN Group did not impose restrictions on the foreign holding limit in the company, so if foreigners owned 51 per cent of the company’s capital, the company would be considered a foreign business.

The Enterprises Law and draft Law on Securities (amended) stipulate that a foreign business must meet the conditions and procedures for foreign investment upon setting up economic organisations, making capital contribution and share purchase, as well as investing in the securities market.

The PAN Group said the foreign holding cap of 49 per cent would ensure the company is always a domestic economic organisation, thus it would not have to meet the conditions and investment procedures for foreign investors.

Foreign ownership in the company reached 45.84 per cent as of the end of 2017.

Its current major shareholders include The Asian Entrepreneur Legacy (TAEL) Partners (20.7 per cent), Saigon Securities Inc (13.7 per cent), and NDH Invest (10.8 per cent).

Last month, Japanese Sojitz Corporation paid over VND817 billion (US$35 million) to buy a 10 per cent stake in The PAN Group.

At the meeting, Toshiaki Miyabe, managing Director of Sojitz’s Food and Agriculture Business Division, was elected as a member of The PAN Group’s board of directors for the 2018-22 term.

The company also approved the plan of issuing bonus shares to existing shareholders at the ratio of 4:1 (every four shares will receive one new share). The issuance is expected to be made in the last quarter of this year or the first quarter of next year. After the issuance, its charter capital will increase to VND1.7 trillion ($73 million).

The PAN Group’s shares (PAN) closed flat at VND48,100 ($2) per share on the Ho Chi Minh Stock Exchange on Monday after suffering 10 consecutive falling sessions last week. However, its value has climbed over 27 per cent this year. 

Experts encouraged by exports     

Experts judged that the national export goal and trade deficit rate next year set by the Government was feasible.

At the sixth session of the 14th National Assembly, the Government discussed economic goals for next year. The goal is for gross domestic product (GDP) to increase between 6.6 and 6.8 per cent, consumer price index (CPI) growth to be about 4 per cent on average, the total export turnover to increase between 7 and 8 per cent, the ratio of trade deficit over the total export turnover to be less than 3 per cent and the total development investment capital for the society to be 33-34 per cent of GDP.

Associate Professor Dr Dinh Trong Thinh from the Academy of Finance said Viet Nam had exceeded the plan set by the National Assembly and the Government for import-export activities over the past few years.

“This is a remarkable achievement, contributing to the relatively stable economic growth,” he told the online newspaper VOV.

Although the country’s export growth is dependent on foreign direct investment (FDI) enterprises, Thinh is optimistic that the export of agriculture, forestry and fishery products, fruits and vegetables had made significant progress in recent years.

Fruit had become a bright spot in export activities as it overcame rice exports. This was a very important move in changing Viet Nam from a rice producer to an exporter of vegetables and fruits, Thinh said.

Consumer goods have also shown relatively strong development, including dairy products and manufactured goods with growing export turnover.

Confirming the import-export sector has been the highlight of the economy in recent years, Dr Pham Tat Thang, senior researcher of the Trade Research Institute under the Ministry of Industry and Trade, pointed out the growth rate of exports and imports was often two or three times higher than the growth rate of the Vietnamese economy.

When assessing the export-import target set by the Government for next year, Dr Thang believed Viet Nam would achieve the results as expected and said that if the Government and enterprises made any breakthroughs, the results might even be better. The business environment has improved quickly.

Despite being optimistic about achievements, experts still pointed out some disadvantages.

According to Dr Thang, small- and medium-sized enterprises (SMEs) were still facing barriers to development. If these barriers could be eliminated, SMEs could contribute greatly to economic development.

In the field of export, Thang noted Viet Nam would be influenced by the US-China trade war.

"Our goods have been exported to China for a long time and we are quite dependent on that market,” he said. “When the trade war began, the demand of the Chinese economy reduced, making it difficult to export Vietnamese goods to China. Viet Nam must find a replacement market right now. In order to find new markets, Viet Nam has to change its production structure to meet demand."

As for the trade deficit rate goal for next year, Associate Prof. Thinh said that reducing trade deficit hinged on two factors.

First, Viet Nam must accelerate the export of goods. Secondly, it should try to reduce the import of consumer goods to promote local production activities and improve the quality of domestic goods.

"Along with that, it is necessary to consider reducing the import of raw materials for production because many commodities are still dependent on imported materials from other countries including China,” he said, adding that the construction of processing and manufacturing plants must be sped up to add value for locally made products.

State budget collection and expenditure must be made more transparent to the public, with full information released instead of general statistics, economic experts agreed at a workshop discussing plans for the 2019 State budget on Monday in Hà Nội.

According to Nguyễn Minh Tân, deputy head of the Finance and Budget Division under the National Assembly’s Finance and Budget Committee, State budget collection this year is estimated to exceed the National Assembly’s estimate by 3 per cent, however, State agencies should follow up collection and spending in the last two months of the year because there might be fluctuations.

The State budget depended on unstable elements such as collection from land use, crude oil, imports and exports, he said.

Economist Lê Đăng Doanh said Việt Nam had made efforts in providing State budget statistics to the public but there is still a huge gap between the transparency of Việt Nam and international standards.

“Regular spending of Việt Nam is putting much burden on State budget, exceeding the national budget cap due to the cumbersome State apparatus,” he said.

Việt Nam spends money on unnecessary things, for example, decorations at public areas, welcome gates and banners, leading Doanh to ask if this is practical in the context of a limited State and local budget.

There were other things to invest in like electricity and buildings roads and schools, he said.

Doanh recommended that budget collection from household businesses be reviewed.

According to General Statistics Office, household businesses contribute 32 per cent of National Gross Domestic Product but contribute less than 2 per cent to the State budget.

Many household businesses evade tax, creating a loophole in budget collection, he said.

The finance ministry has publicised a draft plan for the 2019 State budget online for public feedback. The State budget collection next year is estimated to exceed VNĐ1.4 trillion (US$60.9 million), up 3.9 per cent compared to estimated State budget collection this year. 

Only 20% of Vietnamese firms invest in branding

Merely 20% of Vietnamese enterprises have invested in building brands with the focus on the domestic market and have yet to register their brands in foreign markets. 

The information was revealed at a seminar entitled "Brand in relation to strategies of enterprise development" jointly held by the Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam Intellectual Property Association (VIPA) on October 29.

According to VCCI Vice President, Hoang Quang Phong, brand building is a key factor to help businesses compete fairly with both domestic and foreign firms. This is not only a passport to facilitate firms in their export activities but also establishes the reputation and brand of a whole country.

However, Phong noted that brand development is a shortcoming of Vietnamese firms and only large corporations have developed their own brands including Vinamilk, Vingroup, Viettel, Bao Viet and others. Meanwhile small and medium-sized enterprises (SME) are not strong enough to build their own brands.

In fact, Vietnamese firms, particularly SME have yet to pay due attention to brand building, resulting in being neglected by customers, according to the VCCI.

Phong noted that there were many cases in which popular Vietnamese brands, including Trung Nguyen coffee, Vinamit, and Bitis were not registered abroad and were appropriated in some foreign markets, causing huge losses in market expansion and competition with imported goods.

Deputy Chief Inspector of the Ministry of Science and Technology, Nguyen Nhu Quynh, said that if firms are not aware of the important role of brands and the power of brands in their development, they will lose their development opportunities in the international market.

Most goods categories witness price hikes in October

Ten of the 11 goods categories have seen price increases in October, raising the consumer price index (CPI) by 0.33 percent from the previous month, according to the General Statistics Office (GSO).

The GSO said on October 29 that compared to September, price hikes were recorded in transport (1.55 percent); education (0.58 percent); housing and building materials (0.31 percent); food and eating-drinking services (0.22 percent); garment, headwear and footwear (0.15 percent); household appliances and goods (0.11 percent); culture, entertainment and tourism (0.09 percent); beverage and cigarette (0.03 percent); medicine and healthcare services (0.02 percent); and other goods and services (0.09 percent).

Meanwhile, prices in postal services and telecommunications declined 0.04 percent.

This month’s CPI grew 3.89 percent year on year and 3.54 percent from last December. On average, the 10-month figure rose by 3.6 percent from the same period of 2017.

Director of the GSO’s Price Statistics Department Do Thi Ngoc said the causes for the CPI expansion include higher prices of pork, petrol and gas. School fees also increased as scheduled in some localities.

Meanwhile, lower prices of certain goods have curbed further rise in the CPI, she noted, elaborating that abundant supplies have led to a price drop in some agricultural products like fresh poultry meat, egg, citrus fruits and banana. Notably, dragon fruit prices have plunged 30 – 50 percent from September.

In October, domestic gold prices fluctuated in accordance with the global market, climbing 0.12 percent month on month to around 36.6 million VND per SJC tael.

The USD/VND exchange rate continued to increase slightly after the US Federal Reserve raised the benchmark interest rate from 2 percent to 2.25 percent since September 27.

Thanks to the State Bank of Vietnam’s setting of the daily reference exchange rate in comparison to eight key currencies as well as abundant forex reserves, the USD prices have been kept stable, about 22,719 VND per USD in the market, the GSO said.

It added that the core inflation, which is CPI excluding food items, energy products and State-managed commodities (healthcare and educational services), inched up 0.13 percent month on month and 1.67 percent year on year. It expanded 1.43 percent in the 10 months, compared to the same period of 2017.

Japanese businesses seek investment opportunities in Can Tho

More than 100 CEOs of Japanese businesses will direct fly to the Mekong Delta city of Can Tho on November 1 to attend a series of activities to mark the 45th anniversary of Vietnam-Japan diplomatic ties which run until November 4.

This is the first time Can Tho airport will welcome the largest ever number of Japanese entrepreneurs who will come to the Mekong Delta city to seek investment opportunities in Can Tho and the Mekong Delta region as well, reported Radio the Voice of Vietnam (VOV).

Nguyen Phuong Lam, Vice Director of the Vietnam Chamber of Commerce and Industry (VCCI) branch in Can Tho, said after the three Vietnam-Japan culture and trade exchanges since 2015, Japanese businesses have increased their investments in the Mekong Delta region. This demonstrates how successful and worthwhile the events are.

During the first 10 months of this year, Japan businesses have invested in a whopping 318 projects in Vietnam, including 11 projects in the Mekong Delta region.

They have so far poured investments into 3,889 projects with a combined capital of 55.775 billion USD including 172 projects in the Mekong Delta worth nearly 2.2 billion USD.

Japan ranks second behind only the Republic of Korea among foreign investors in Vietnam. 

Hanoi seminar discusses trademark building

The Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam Intellectual Property Association (VIPA) held a seminar in Hanoi on October 29 to discuss trademarks in corporate development strategy. 

VCCI Vice Chairman Hoang Quang Phong described trademark building as a crucial factor to help firms better compete with domestic and foreign ones. 

He said that most small- and medium-sized enterprises have yet to pay attention to the building of trademarks and so consumers tend to choose foreign brands despite similarities in quality and design between domestic and foreign-made options. 

According to a survey recently conducted by the Ministry of Industry and Trade, only 20 percent of Vietnamese enterprises invest in brand building, and most of them register trademarks at home instead of on foreign markets. 

Phong said several well-known Vietnamese brands such as Trung Nguyen coffee, Vinamit dried jackfruit, and Bitis footwear were copied abroad, making it hard for them to expand markets and compete with foreign brands. 

Although Vietnam is among the top exporters of quality rice, coffee, and pepper, demand for farm produce labelled with Vietnamese brands remain modest, he said. 

Nguyen Nhu Quynh, deputy chief of inspection at the Ministry of Science and Technology, said that if firms are unaware of the role of branding, they will lose development opportunities on the international arena. 

Nguyen Duc Son, Director of Richard Moore Associates, said that trademark building should go hand-in-hand with the rise in product and service quality. 

Ninh Thuan speeds up renewable energy projects

The central province of Ninh Thuan is speeding up the construction of wind and solar power plants in order to generate commercial electricity as scheduled. 

Amongst the 16 wind power projects in the master plan on power development approved by the Prime Minister and the Ministry of Industry and Trade, 12 have received licences with combined capacity of over 748 MW and a total registered capital of more than 22.5 trillion VND (978 million USD). 

There are also 29 solar power projects in the master plan, 12 of which have a total capacity of 968MW and a total registered capital of over 27.8 trillion VND. 

As scheduled, more than 82MW of wind power from plants in Dam Nai (second stage), Mui Dinh, and Trung Nam will be added to the national grid. 

According to the provincial People’s Committee, three renewable energy projects and the National Power Transmission Corporation have reached agreements on power generation. Meanwhile, 22 other projects signed deals with the Southern Power Corporation and 11 renewable energy projects inked contracts on power purchase with the Electricity of Vietnam. 

Chairman of the Committee Luu Xuan Vinh said Ninh Thuan considers renewable energy development one of the key breakthroughs for local socio-economic development, adding that the province prioritises capable and experienced investors determined to develop renewable energy projects. 

Ninh Thuan is expected to attract investment in wind power projects with a total capacity of 1,429 MW and solar power projects with a total capacity of 3,912MW between now and 2030. 

Recently, the Government issued Resolution No.115/NQ-CP dated August 31, 2018 on special mechanisms and policies to facilitate Ninh Thuan’s socio-economic development and stabilise local lives for the 2018-2023 period. Accordingly, the Government approved the plan to turn Ninh Thuan into a renewable energy hub of the country.

New project boosts Thua Thien-Hue tourism infrastructure

Authorities in the central province of Thua Thien-Hue have approved a sub-project to develop tourism infrastructure in the locality.

It is part of a tourism development project that supports comprehensive development in the Greater Mekong Sub-region.

Costing 8.05 million USD, of which 6.4 million USD is sourced from the Asian Development Fund (ADF), the sub-project aims to develop a sustainable, comprehensive and balanced tourism industry in line with the ASEAN tourism development strategy for 2016-2025. It will help boost Vietnam’s tourism competitiveness, protect local natural and cultural heritages, and enhance the capacity of tourism management. 

The sub-project covers upgrading a 1.2km road linking the 1A National Highway to the south-west of Hon Chen, a spiritual destination on Huong River; building a drainage system and a 5,000sq.m car park; and building and upgrading five wharves on Huong River and two others in Tam Giang lagoon.  

It will also support the building of cross-country routes to connect destinations across the region, contributing to the comprehensive growth of countries along the regional economic corridor, particularly Vietnam, Laos, Cambodia, and Myanmar.

Solutions to increase enterprises’ participation in logistics discussed

A seminar to discuss policy recommendations to support logistics development in Vietnam was held in Hanoi on October 29. 

The event, organised by the Central Institute for Economic Management (CIEM), was also to identify difficulties and obstacles to logistics activities, thereby proposing solutions to better the legal system related to promoting the development of logistics services, reducing costs and improving the competitiveness for logistics enterprises.

Nguyen Dinh Cung, head of CIEM, said logistics is the backbone of international trade. Logistic services with low costs and highly responsive to customer requirements would help promote domestic and foreign trade and national economic development.

Logistics performance shows that for the countries with the same income per capita, the one with the best logistics performance witnessed a growth rate of 1 percent in GDP and 2 percent in trade. Therefore, the logistics sector in particular and other fields in the economy are in need of a rational change, he added.

Michael Krakowski, Programme Director and Chief Technical Advisor of the GIZ’s Programme on Macroeconomic Reforms and Green Growth, said that based on world experience, to take advantage of the Fourth Industry Revolution, it is necessary to develop policies approached by each group and specific sector, in addition to defining solutions for each specific industry and group, and logistics is also one of the industries that needs to be studied in that direction.

According to the CIEM, in 2018, hundreds of legal documents have been issued to help raise the efficiency of the logistics sector. However, its competitiveness is still faced by a lot of obstacles, including limited infrastructure, lack of connections and bottlenecks in hindered business conditions, specialised management and administrative procedures, while the IT development and application in logistics enterprises remains limited.

Business representatives at the event suggested multiple solutions to remove the obstacles and boost logistics development in Vietnam, including legalising IT application into business conditions.

Vietnam becomes world’s third largest footwear exporter

Vietnam has become the world’s third largest exporter of footwear with a total export value in the first nine months of this year rising by 10.5% to US$11.7 billion, according to the Ministry of Industry and Trade (MoIT).

The signing of the Vietnam-EU free trade agreement (FTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will open up development opportunities for the leather and footwear sector, especially drawing investments and boosting exports to EU markets and CPTPP member countries.

However, currently the sector is facing difficulties like increasing labour costs, and lower labour productivity. The fourth industrial revolution will also affect footwear businesses as they will have to invest in advanced equipment and reduce labour force.

Nguyen Duc Thuan, president of the Vietnam Leather, Footwear and Handbag Association (LEFASO), said domestic footwear and bag businesses are likely to confront fierce competition with rivals in the world this year and in the coming years.

Meanwhile Phan Thi Thanh Xuan, vice president and general secretary of LEFASO, forecast that if the sector applies modern management methods and advanced technologies to improve the productivity, its growth will increase by 1.5-2 times.

400 tons of Lo Ren star apples to be shipped to US

Gardeners in the Mekong Delta province of Tien Giang have made thorough preparations for the export of 400 tons of Lo Ren star apples to the US market.

With a huge demand in the US market, this is the second year that Lo Ren star apples have shipped to the US. In order to match the demand, the quantity of Lo Ren star apples has increased remarkably compared to last year.

To ensure a sufficient volume of fruit is exported, owners of more than 270 gardens in the districts of Cai Be, Cai Lay and Chau Thanh have had to take meticulous care. Over 100 hectares of star apple trees have been granted specific business codes in the planting area in order to ensure they meet regulations of origin traceability.

During the production process, garden owners are required to meet a variety of requirements set by the US’ Animal and Plant Health Inspection Service.

Last year, farmers in Tien Giang exported nearly 100 tons of Lo Ren star apples to the US through businesses such as Dai Lam Moc Co, Ltd and Anh Duong Sao Trading Service Company Limited. 

Auchan products to be sold on Lazada

Auchan Retail Vietnam and Lazada Vietnam, an Alibaba-owned online retailer, has recently signed a memorandum of understanding on strategic cooperation to allow customers to purchase French products online with rapid delivery through Lazada.

Even though Auchan customers can buy goods on the retailer’s website, the cooperation will offer customers new online-to-offline services, according to a press release from Lazada Vietnam.
In particular, customers can select products from Auchan on Lazada’s online shopping platform LazMall, with different options for delivery: same-day delivery, next-day delivery or low-cost delivery.

Besides this, customers in Hanoi, HCMC, Hue, Danang, Dong Nai, Ba Ria-Vung Tau, Binh Duong and Long An will be entitled to free delivery on orders worth VND99,000 or more.

In the initial period, products from Auchan being sold on LazMall will mainly be consumer goods, and the product line will expand over time. All the operational stores of Auchan will reportedly soon appear on LazMall, so with only one click, the ordered products can be delivered to customers from their nearest Auchan stores.

French retailer Auchan currently has 21 supermarkets in three major cities in Vietnam: Hanoi, HCMC and Tay Ninh.

Administrative procedure reforms are improving Vietnam’s investment environment and boosting its economic development.

Hanoi is one of the most attractive localities in Vietnam to foreign investors. As of June 2018, Hanoi had 4,300 active FDI projects with a total registered capital of more than US$33 billion. So far this year, Hanoi is leading the nation in FDI attraction, thanks to administrative reforms to encourage production.

A single-door mechanism and single inter-sector mechanism have been applied by administrative agencies thus saving time and efforts for individuals, organizations, and businesses.

Nguyen Duc Chung, Chairman of the Hanoi People`s Committee, said “In addition to investing in infrastructure, Hanoi has promoted a favorable investment and business environment, reformed administrative procedures, stepped up e-government, and provided public services via the Internet.

The municipal authorities are continuing to improve the investment and business environment and support the business community, making people the focus of services.”

Binh Duong province has been successful in FDI attraction thanks to smart policies and administrative reforms. It has attracted more than US$30 billion in FDI projects, the third best FDI total in Vietnam.

Tran Thanh Liem, Chairman of the Binh Duong’s People’s Committee, said “These achievements are thanks to efforts by leaders at all levels to develop an open environment for investment attraction, by listening to and promptly addressing problems faced by enterprises. Binh Duong has publicized the operations of state agencies, particularly those that handle procedures for investors.”

Many ministries and sectors have simplified procedures and reduced business conditions. These have helped enterprises reduce their costs.

Deputy Prime Minister Truong Hoa Binh said, “Ministries, sectors, and localities should fine-tune administrative procedures to save time for individuals and businesses.

We need to improve oversight and inspection, make administrative procedures more transparent, and reduce the excessive time required to handle administrative procedures. It’s also important to promptly deal with the complaints and petitions of individuals and organizations.”

Vietnam to roll out mobile number portability from November 16

Cellphone users in Vietnam will be able to the switch between mobile carriers while retaining their phone numbers starting November 16, the communications ministry has announced.

Three major mobile network operators in Vietnam – Viettel, VinaPhone and MobiFone – have confirmed they will be ready to offer the service in pursuant to the ministry’s schedule.

Hong Kong-invested Vietnamobile will join in later on January 1, 2019.

In the first three months from November 16, mobile number portability (MNP) will be available only for postpaid subscribers of the networks.

After the period, the service will also be launched for prepaid users, according to the Ministry of Information and Communications.

The ministry has said it would be issuing more detailed instructions on the protocol and service charges for MNP before the date of the launch.

According to a draft circular on MNP, subscribers are required to have used their number for at least 90 days with their current provider before they can make the switch.

Those with unpaid mobile bills will also be prohibited from transferring their number, the draft states.

Vietnam had earlier planned to launch MNP from December 31, 2017.

It is unclear why the plan has been delayed for more than ten months.

The four telecom companies involved in the MNP launch together make up more than 90 percent of all cellphone subscribers in Vietnam.

Currently, mobile users in Vietnam are forced to change numbers when deciding to switch to another carrier, as each network operator is allocated a different set of numbers.

Expanding trade surplus aids growth

Vietnam expects a bright export picture for 2018, driven by the key export items of phones and electronic components, textiles and garment and footwear, as well as a growing trade surplus despite protectionist measures coming into effect across the globe.

According to the Ministry of Industry and Trade (MoIT), exports may reach about US$240 billion by the year’s end, an 11.2% increase over 2017.

Some 26 export commodities brought in more than US$1 billion in export value between January and September, making up 90.3% of the country’s total export revenue.

Under that, foreign-invested enterprises (FIEs), with electronics taking the lead, are expected to continue occupying the lion’s share of Vietnam’s exports over the next few years.

The development of Vietnam’s electronics industry is attributed to the large investments from multinational corporations, especially those from the Republic of Korea (RoK) and Japan, in the field of manufacturing electronic components. Vietnam is now becoming a big electronics production base for foreign firms like Samsung and LG, Canon, Panasonic, Daikin, and Intel.

Electronics is the largest export sector of Vietnam. The sector’s export turnover has grown from US$22.9 billion in 2012 to more than US$71 billion in 2017. It is now 2.5 times and five times greater than textiles and footwear sectors, respectively.

Regarding garment and textile, according to the Vietnam Textile and Apparel Association (Vitas), the industry’s exports are forecast to reach US$35 billion this year, higher than the target set at the beginning of the year, thanks to a large number of orders from foreign partners and bright prospects of the world and domestic economies.

In 2017, the sector raked in US$31.2 billion from exports, a year-on-year rise of 10.23%.

The Vitas explained that Vietnam’s participation in free trade agreements and the large investments in the industry by foreign and domestic firms have helped to increase the localisation rate of the industry, leading it to become one of the industries with strongest increases in export values over the years.

The four markets of Japan, China, the US, and the RoK account for 75% of the total exports of garments and textiles, which posted an annual growth rate of more than 20%. The US remains the largest importer of Vietnamese garments and textiles, occupying nearly 40% of the industry’s total export value.

In addition, it is worthy to note that Vietnam’s trade surplus continues expanding, which was attributed to the large trade surplus in FIEs.

According to the latest report of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI), in the first 10 months of this year, FIEs witnessed a trade surplus of US$27.105 million as their exports reached US$126.735 million (including crude oil).

Nguyen Chi Dung, Minister of Planning and Investment, stressed in the MPI’s report delivered to the National Assembly (NA) that the trade balance has shifted from deficit to surplus in three consecutive years, contributing to improved macroeconomic stability, while promoting economic growth in the first three years of the 2016-2020 development period.

In total, Vietnam witnessed a trade deficit of US$3.54 billion in 2015, but it gained a trade surplus of US$2.52 billion and US$2.92 billion in 2016 and 2017, respectively.

According to the government, Vietnam will likely witness a total export-import turnover of US$475 billion this year-up 11.7% on-year, including US$238 billion for exports and US$237 billion for imports. This will lead to a trade surplus of US$1 billion for 2018.

The MPI explained that not only due to FIEs, the recent trade surplus has been induced by the restructuring of the economy as the proportion of industry, especially manufacturing, increased while mining declined. The economy is no longer dependent on the exploitation of natural resources.

It is expected that Vietnam will achieve an increase of 7-8% in the total import-export value next year, while keeping the trade deficit below 3%.

However, expert Le Dinh An expected the government to continue to keep the trade deficit in check, and that although Vietnam has reported a trade surplus recently, this is still not sustainable as domestic production depends heavily on imported raw materials.

The International Monetary Fund reported that strong economic momentum is expected to continue in 2018, aided by reforms, higher potential output, global recovery, and the government’s commitment to uphold macro-economic and financial stability. 

Bright prospects for automobile industry in Industry 4.0 era

Vietnam has plenty of potential huge opportunities for the development of its automobile industry if the country takes full advantage of Industry 4.0 technologies, automation and cloud technology used in manufacturing.

Deputy head of Industry Department under the Ministry of Industry and Trade Nguyen Ngoc Thanh made the remarks at a seminar on the automobile industry in the era of industry 4.0 as part of the Vietnam Motor Show 2018, held recently in Ho Chi Minh City.

With technological advantages, a skilled workforce and low production costs, a number of countries such as Thailand, Indonesia or China are poised to reap success in the Vietnamese automobile market with the signed free trade agreements (FTAs) between Vietnam and regional countries,

Mr Thanh urged Vietnam’s automobile industry to devise practical solutions for further development in the future and to seize opportunities in order to overcome challenges faced from the development of regional neighbours.

According to statistics from the Ministry of Industry and Trade, Vietnam’s automobile industry has lagged 30 years behind other regional nations. Whilst Thailand, Indonesia, Malaysia have all been able to develop their automobile industries since the 1960’s, the automobile industry is new to the scene with its inception in 1991.

The country has also mapped out a development strategy leading to 2025, with a future vision aiming at 2035 for the automobile industry.

Along with development strategies and solutions from the Government, Vietnam’s automobile market has also seen the active involvement of businesses from all economic sectors, including some domestic manufacturers  such as Truong Hai (Thaco), Huyndai Thanh Cong, Vinfast and the world’s leading automobile groups like Toyota, Ford, Honda and Mitsubishi.

Total assembling and manufacturing capacity in Vietnam has so far reached roughly 600,000 vehicles per year, covering a variety of types of vehicles with a high localization rate, including trucks (55%) and 24-seat passenger buses (45%-55%), which meets the set targets by 2020. 

Ba Ria-Vung Tau promotes cultural values in tourism development

Located in Vietnam’s key southern economic region, Ba Ria-Vung Tau is endowed with favorable geographical and natural conditions for tourism development. In addition to its beautiful beaches, Ba Ria-Vung Tau is home to many landmarks, historical relics, and coastal festivals.

Rich and diverse in culture, arts, customs, and religion, Ba Ria-Vung Tau province has great potential for tourism development related to the region’s spiritual practices.

Visitors should not miss its many folk festivals that are closely associated with people living in coastal areas such as the Nghinh Ong or Whale Worshiping.

Taking place in the eighth lunar month annually, the Whale Worshiping festival is an important event for the local fishermen. The annual festival represents a chance for fishermen to show their respect for the whale and their gratitude for favorable weather conditions and a bumper catch.

"The festival dates back  hundreds of years. It’s said that long ago a giant whale weighing 18 tonnes drifted to  shore and the local fishermen enjoyed a year full of health with good weather and bumper catches. First organized 1817, the “Nghinh Ong Thang Tam” festival in Vung Tau is recognized as one of the fifteen biggest festivals in Vietnam.

The provincial authorities have focused on upgrading the local infrastructure and creating high-end recreational services to attract visitors for longer stays. Model craft villages and clean agricultural practices are among the features being pushed forward in order to better accommodate visitors to the province.

"We have completed a plan for cultivating the local tourism industry by 2025, with a vision extending to 2030. Under this plan, we will single out the core tourist products of each locality. We’ll cooperate with different localities across the province to create more attractions while setting up tours and programs to facilitate", said Trinh Hang, Director of the Ba Ria-Vung Tau provincial Department of Culture, Sports, and Tourism.

Yuanta Securities commits to ensure prosperity to investors in Viet Nam     

Brokerage Yuanta Securities Vietnam confirmed its commitment to ensuring prosperity to investors in the country’s financial market at a grand opening ceremony held in HCM City on Friday.

Yuanta Financial Holdings aims to dominate the Taiwanese brokerage market and become the largest securities firm there.

With its extensive customer network, Yuanta Financial Holdings has become one of the largest financial, banking, securities, and insurance companies in Taiwan and is gradually expanding its network throughout Asia.

It has been involved with the Viet Nam stock market since 2006 when it acquired 44.68 per cent of shares of the Binh Duong-based De Nhat Securities Company.

At the end of last year Yuanta received approval from shareholders to acquire 99.95 per cent of the company.

In February De Nhat Securities Company was renamed Yuanta Securities Vietnam Company following approval from the State Securities Commission, and its headquarters was moved to HCM City.

Yuanta Securities Vietnam has since been investing in advanced technologies, upgrading systems, improving processes, recruiting more staff, providing training within and outside Viet Nam, and developing new products.

Recently it opened two new branches and launched its online trading application named YSWinner on both web-based and mobile platform.

Headquartered in HCM City’s District 1, the company now has branches in the city’s District 5, Binh Duong and Dong Nai provinces and Ha Noi.

It plans to open more branches in Hai Phong, Da Nang and Can Tho and other major cities in the near future.

In September the company increased its charter capital to VND1 trillion (US$42.92 million). Yuanta Securities Vietnam has more than 140 employees, all of whom are well trained at home and abroad.

The board of directors and executive board in Viet Nam consist of a professional team with experience of working in financial institutions and securities companies in many countries around Asia.

Yuanta Financial Holdings will continue to grow in the Asia Pacific region and rapidly achieve its goal of becoming the best financial services provider in the Asia Pacific.

Le Minh Tam, chairman of Yuanta Vietnam, said: “Yuanta Vietnam will connect Asian investors with investment opportunities in Viet Nam, serving as a bridge for Vietnamese businesses to tap capital markets.

“The company is willing to assist Vietnamese securities market regulators, as far as possible, to access and exchange regulations, products and practices of securities markets in other countries.

“This is to help Vietnamese businesses with finding strategic partners and listing their shares on foreign stock markets.”

The company provides a range of products and services, including brokerage, margin trading, securities depository, online trading, financial advisory, analysis, research, stock issuance advisory, bond issuance consultancy and M & A consultancy.

With more than 50 years of experience working with large corporations and individual investors across Asia, Yuanta has become the continent’s leading financial services and brokerage house.

Yuanta Financial Holdings was originated from Yuanta Securities, which was established in 1961 in Taiwan.