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Banks concerned about legal risks from digital transformation
Most local banks have strongly invested in digital transformation, and legal risks are their greatest concern for this process, said Pham Tien Dung, director of State Bank of Vietnam’s Payment Department, at a seminar on banking digitalization on November 1.
At the seminar, titled “Banking digitalization: breakthrough opportunities,” Dung stated that up to 94% of local banks have drawn up their digital transformation strategies.
Digital technologies have gradually changed the business model of banks, remarked SBV Deputy Governor Nguyen Kim Anh, adding that the development of near field communication and biometric technologies has helped banks develop new products and services, such as internet banking, mobile banking and QR code payment, thus raising their revenues and profits as well as reducing their dependence on credit services.
Pioneers in digital transformation in the banking system are Tien Phong Commercial Bank, Vietnam Prosperity Joint Stock Commercial Bank, Orient Commercial Bank, Bank for Foreign Trade of Vietnam, Vietnam Bank for Industry and Trade, Military Bank and the National Payment Corporation of Vietnam, Anh noted.
Dung cited a study by Bank for Investment and Development of Vietnam, saying that banks can cut their expenditures by 60%-70% by embracing digital transformation, while customers can access more banking services.
The central bank’s statistics also showed that the mobile banking service grew annually by 144% over the past two years, well above the 30% seen for other payment services.
However, banks have also encountered risks of cyber attacks and swindling. In addition, it is costly and time-consuming for banks to transform into digital ones.
Banks have applied the chatbot tool on their websites to automatically interact with their customers. However, there are no regulations in place to ensure someone bears legal responsibility if the information provided by the chatbot is inaccurate, causing serious risks for customers.
Banks also use Big Data to analyze their customers’ creditworthiness to decide on issuing loans of less than VND50 million. This task does not require the participation of human beings, posing a high legal risk.
The SBV deputy governor said the central bank attaches great importance to the improvement of the legal framework to ensure the safety of the banking system. SBV also supports the establishment and development of financial technology companies.
Vietnam resolved to boost marine economic development
The 12th Party Central Committee has issued a resolution on the marine economic development strategy by 2030 with a vision to 2045, with an aim to intensify the sustainable development of the marine economy.
Under the resolution, signed on October 22 by Party General Secretary Nguyen Phu Trong, Vietnam will give priority to tourism, shipping, petroleum and marine resources exploitation, aquaculture and fishing and renewable energy (wind and solar power).
As for tourism, the country will focus on developing tourism infrastructure and diversify tourism products and services, making Vietnam an attractive destination for international visitors.
Beside this, the effectiveness of seaports and shipping services will be enhanced by upgrading logistics facilities and roads, together with building links among local ports.
The Party Central Committee also stresses the need to apply hi-tech to farming, catching, preserving and processing seafood, as well as to encourage offshore fishing.
One of the focuses of the resolution is to invest in coastal economic and industrial zones, serving the development of coastal areas and connections with other regions, and attracting investors. Coastal smart urban areas will be developed as well.
The committee also assigns specific tasks for each coastal area.
Accordingly, Haiphong City with Lach Huyen International Gateway Port and Quang Ninh Province will continue a driving force of the northern key economic zone. Especially, Quang Ninh with Halong Bay, a world heritage site recognized by UNESCO, is expected to become a national tourism hub connecting with large tourist sites in the world.
Central Vietnam will invest in deep sea water ports and clean energy generation, while coastal areas in the south will boost the development of international container terminals, logistics services, oil and gas exploitation and processing as well as supporting industries.
Particularly, Phu Quoc is set to become an international hub for eco-tourism.
The committee also attached much importance to environmental protection, marine conservation and response to climate change, rising sea levels and natural disasters.
Tough requirements, equivalent to international standards, will be issued for projects that potentially put the environment in coastal areas at risk of pollution.
The HCMC Tax Department has proposed the municipal Department of Planning and Investment revoke the business registration certificate of Meinhardt Vietnam Construction Consultancy Co., Ltd, the consultant of the flood control project worth VND10 trillion (US$429.1 million) in the city, for failing to pay its tax arrears.
The company owed tax sums and fines on late tax payment totaling VND22.7 billion as of last month, reported Thanh Nien newspaper.
The tax agency has repeatedly urged Meinhardt Vietnam to fulfill its tax obligations, but their efforts were in vain.
Based on prevailing regulations, the HCMC Department of Planning and Investment has to revoke Meinhardt Vietnam’s business registration certificate or state its reasons for not doing so within 10 days of receiving the tax agency’s proposal.
Meinhardt Vietnam is allegedly behind the suspension of the VND10-trillion antiflood project, as the consultant disapproved of the contractor's change of materials used in the project. The city is considering whether the firm should continue to act as a consultant for the project as it fails to make a full tax payment.
Nearly VND12 trillion proposed for Ring Road 4 section
A road section stretching from Ben Luc in Long An Province to HCMC’s Hiep Phuoc port-urban area will require VND11.918 trillion for full development, heard a meeting held on October 24 in the province.
Addressing the meeting attended by the provincial People’s Committee and the relevant agencies on finalizing investment options to construct the Ring Road 4 project, Doan Tuan Anh, deputy general director of T&T Group, stated that the section linking Long An and HCMC is 35.8 kilometers long, with the longer part of 32 kilometers being in Long An while the remaining 3.8 kilometers is in the city.
Based on the current budget and estimate of vehicular traffic, T&T group suggested three investment options.
The company’s initial suggestion was to clear the 74-meter-wide cross section and build two parallel 9-meter-wide roads, with a total investment of some VND9.8 trillion.
Its second suggestion required investment capital of nearly VND12 trillion, which also involves clearing the cross section and constructing four traffic lanes with a total width of 17 meters, similar to the design of the North-South Expressway.
Lastly, T&T Group suggested building the section with four lanes in line with expressway standards and performing site clearance works within the project’s designated area. The project needs funding of an estimated VND9.8 trillion if this option is chosen.
Along with the suggested investment capital amounts, the consultant also presented investment methods for the project, including using the local State budget for site clearance, while construction is depolyed using the build-operate-transfer (BOT) or build-transfer (BT) format.
However, the investment method that requires funding from the local state budget is unfeasible given the exhausted resources, said Tran Van Can, chairman of the provincial government.
Can added that the project is in urgent need of further research to identify which component can be executed under the BOT or BT format, so that the government can work with the relevant ministries and agencies on the project.
The project was earlier slated for completion by 2020, and its feasibility study had been approved by the Prime Minister.
Ben Tre ends 28MW wind-power project
The Ben Tre Department of Planning and Investment has revoked the license of a 28-megawatt (MW) wind farm owned by Hung Phuc Nguyen Company due to long construction delays.
At a press conference to announce the province’s socioeconomic performance in January-September of 2018, held on October 24, Nguyen Van Men, deputy director of the department, confirmed that Ben Tre Province alone was home to 11 wind-power projects, but one project was being cancelled because of protracted delays.
The cancelled project was Wind Power Plant No.1, Men added.
Work was scheduled to begin on the first phase of the project in the fourth quarter of 2016, with completion set for the fourth quarter of 2017. The second phase was expected to get off the ground in the first quarter of 2018 and be completed in the fourth quarter of the same year. However, construction was reportedly tardy, resulting in the license being revoked.
The project was licensed for construction in the Thanh Hai and Thanh Phong communes of Thanh Phu District, covering 32,000 square meters of land. The project was expected to operate at full capacity of 28MW, of which the first phase would have had a capacity of 8MW, with the second reaching a capacity of 20MW, at a total cost of VND252 billion.
Speaking at the Smart Internet of Things (IoT) Vietnam 2018, Minister of Information and Communications Nguyen Manh Hung urged the country to adopt new business models and develop IoT solutions to gear up for the Fourth Industrial Revolution (IR4), the local media reported.
At the conference and exhibition held in HCMC on October 24, Minister Hung said the country should prioritize policy reforms to welcome new business models, and develop technologies, infrastructure and human resources later.
The country may face potential risks from this orientation, but the opportunities will certainly be considerable, Hung said.
IoT is a foundation technology of the IR4, so it is necessary to boost the sector’s development to improve Vietnam’s position in terms of information and communication technology.
According to the minister, the country must grasp opportunities to produce IoT devices, after missing chances to manufacture electronic devices, such as mobile phones.
He stressed that IoT is an industry that has given first priority to sensor production. The IoT sector has significant potential as the market may need only six to seven billion smartphones but trillions of IoT devices.
Minister Hung also highlighted Vietnam’s strategy for developing an IoT connection platform by 2020, by which each household is expected to have a cable line and each citizen, a smartphone, while the 5G network will cover a large area.
According to the Ministry of Information and Communications, Vietnam’s greatest advantage in IoT development is its strong telecommunications infrastructure.
Nguyen Van Binh, head of the Party Central Committee's Economic Commission, agreed with Hung, adding that Vietnam should improve its mechanisms in a manner that promotes the digital economy, innovation and new business models formed in the IR4.
As many as 40 countries worldwide have drawn up strategies for the IR4. Vietnam should not be an outsider to this trend, Binh added.
Smart IoT Vietnam 2018, which was held for the first time under the direction of the Party Central Committee's Economic Commission and the Ministry of Information and Communications, attracted more than 1,200 local and international experts and representatives of agencies and enterprises.
HCMC apartment market bleak
The apartment market in HCMC has displayed little energy in recent months, with few apartments put up for sales in the city lately, reported news website Vietnamplus.
Duong Thuy Dung, head of valuation, research and consulting services at CBRE Vietnam, said 6,700 apartments were introduced in the last quarter, down 14% year-on-year. However, the figures was 22,000 units in the January-September period, falling just 1% over the period one year ago.
According to Le Hoang Chau, chairman of the HCMC Real Estate Association, the property market showed signs of decline in both the supplies and number of transactions in the first half of the year. In HCMC, the supplies of apartments plunged 44.5% in the six-month period, with the respective decline of 25.9%, 32.6% and 69.7% in the high-, mid- and low-end segments.
Additionally, only six out of 15 merger and acquisition agreements for real estate projects were approved during this period, Chau added.
According to the investor of an apartment project in District 9, homebuyers prefer land lots for investment, due to higher profits. In addition, banks have tightened property credit, leading to the stagnation in some apartment projects.
Another reason is that the city is set to issue a housing development plan to run until 2020, which may affect the development strategies of property enterprises.
Specifically, the city will not allow new high-rise apartment building projects in districts 1 and 3 as the core zone until 2020. In other inner-city districts 4, 5, 6, 8, 10, 11, Tan Binh, Tan Phu, Phu Nhuan, Go Vap and Binh Thanh, new high-rise apartment building projects will be limited.
HoREA forecast that the property market will be more active at the end of the year, of which the demand for affordable apartments will surge, while the mid-end segment will continue to dominate the market.
Regulations to manage new kinds of property products, such as condotel, hometel, officetel, serviced apartments, and shophouses, will be issued to ensure the sustainable development of the sector and legitimate rights of homebuyers.
Moreover, the city has plans to convert 26,000 hectares of agricultural land into land for other purposes, which is expected to increase the supplies of apartments.
Additionally, Vietnam Asset Management Company will auction mortgaged assets, including many property projects, to settle bad debts, while promoting merger and acquisition deals in the sector.
In order to boost the growth of the apartment market and the real estate sector as a whole, enterprises should prepare the land bank, ensure the quality and progress of their projects, as well as transparency in business governance, Chau said.
He also advised property developers to attach much importance to the benefits of customers, focus on developing affordable apartments with one or two bedrooms, and convert to joint stock companies to mobilize capital.
HD Mon joins hands with Indochina CapitalHD Mon Holdings, specializing in real estate investment and development in Vietnam, has announced it will appoint Indochina Capital’s two divisions, Indochina Properties and Indochina Strategic, as the lead sales agent and strategic advisor, respectively, for the group’s newest high-end condo project.
The move highlighted the company’s determination and commitment to attain international standards of excellence, quality and innovation for its developments in Vietnam.
As a small township development with a wide range of amenities and green living space in central My Dinh, to the southwest of Hanoi City, the residential complex will be specifically developed for the premium segment.
Nguyen Anh Tuan, CEO of HD Mon Holdings, said that the site’s prime location was a main attraction for the development. Such a new project will offer new living standards, along with a new way of living for second home buyers and property investors.
The cooperation with Indochina Capital is expected to take advantage of its extensive experience in developing luxury real estate in Vietnam, Tuan added.
Indochina Capital, one of the leading real estate, investment and financial services firms in Vietnam, will leverage the experience and guidanice provided by HD Mon through this project.
Michael Piro, chief operating officer of Indochina Capital, said the partnership would create a leading product to be accessible to buyers and investors seeking an exceptional experience in the My Dinh neighborhood. After studying the potential of the high-end development, Indochina Capital brought in world-class consultants and designers to help the group achieve the partner’s ambitions.
HD Mon’s new premier development is under construction and expected to be completed in early 2021. Located in a prime area at the junction of Le Duc Tho, Nguyen Co Thach and Ham Nghi, the project is a high-end mixed-use development consisting of 891 units.
Vietjet seeks to invest in Dien Bien Airport expansion project
Local budget carrier Vietjet has sought approval from the Dien Bien provincial government and the Ministry of Transport to inject investment into a project to expand Dien Bien Airport, raising its annual capacity to two million passengers.In particular, the carrier proposed constructing the airport’s key infrastructure facilities, with a new passenger terminal that can accommodate two million passengers and can be expanded if needed, as well as runways, taxiways, roadways and an apron, along with other airway facilities.
The total investment capital (including loan interest costs), according to a report released by Vietjet, is up to VND4.4 trillion, or nearly US$190 million. Of this, the terminal construction will require more than VND682 billion, the runways, taxiways and the apron account for VND806 billion, while some VND1.1 trillion is set aside for site clearance.
For the passenger terminal area, including the terminal, parking lots and traffic infrastructure, Vietjet suggested executing these works under the build-operate-transfer format, with a 50-year contract. In addition, the investor will be prioritized when renting the new terminal for further operation after the contract term, according to the proposal.
To increase the efficiency of the airport management, the carrier said it would be willing to team up with the Airports Corporation of Vietnam (ACV) to set up a joint venture as the airport operator, with ACV’s stake not exceeding 30%.
Regarding the capital needed for developing the runways, taxiways and apron, Vietjet proposed utilizing the full State budget, adding that it can advance funding when the State budget is struggling to cope.
In response to the carrier’s proposal, the provincial government expressed its approval, noting that the proposal was in line with prevailing regulations.
For the ministry, however, there are no regulations allowing the advancement of capital as suggested by Vietjet, stated Deputy Minister Le Dinh Tho. He added that the proposal of advancing capital was unfeasible as it goes against the Law on Public Investment and Decree No.63 on investment within the private-public partnership format.
The government of HCMC has written to the Ministry of Transport, proposing tapping the municipal State budget for nearly VND3 trillion to complete site clearance for the sections of the Ring Road 3 project that will run through the city.
According to preliminary calculations, the proposed funding will be used for two sections: one stretching from Binh Chuan to National Highway 22 and the other running from National Highway 22 to Ben Luc in Long An Province.
The city government will present the proposal to the municipal People’s Council by end-2018 if the ministry approves it.
The Ring Road 3 project plays a pivotal role in the economic development of the city and neighboring provinces as it is considered an arterial road linking the city with the provinces. In addition, it is expected to reduce truck traffic through the city toward the Mekong Delta region and will ease traffic congestion accordingly.
Based on the project’s plan, approved by the Prime Minister in 2011, the 97.7-kilometer-long Ring Road 3 has four sections. The first one, starting at Binh Chuan and ending at Tan Van in Binh Duong Province, is nearly 17 kilometers long, while the second, some 34 kilometers long, will stretch from Tan Van to Nhon Trach in Dong Nai Province, alongside the 17.5-kilometer-long Binh Chuan-National Highway 22 section and the 29-kilometer-long National Highway 22-Ben Luc section.
The Binh Chuan-Tan Van section was funded and put into operation by the province of Binh Duong. The remaining sections are still in the process of being studied and investment methods are being proposed.
Tran Van Thi, general director of Cuu Long Corporation for Investment Development and Project Management of Infrastructure, said the 34-kilometer Tan Van-Nhon Trach section will run through Dong Nai Province and HCMC, with the longer part of some 28 kilometers crossing HCMC while the remaining six kilometers lie in the province. This section in the phase one study has been divided into two smaller parts: 1A and 1B.
Part 1A will run from provincial road 15B in Nhon Trach to the HCMC-Long Thanh-Dau Giay Expressway, and a consultant is currently being selected to complete it. Meanwhile, part 1B from the expressway to the Station 2 intersection is some nine kilometers long and will be executed under the build-operate-transfer format.
The two parts will see construction start by end-2019 if the necessary procedures are completed on schedule, said Thi.
While the project’s first two sections have identified their financial sources, the remaining sections in HCMC are reportedly actively seeking funding. The Asian Development Bank has backed the sections running across the city to complete the investment study and foundation design.
Health food products have the opportunity to enter the selective market of Japan as they are in demand in this country, according to Tetsuichiro Tomihari, exhibition section manager of the National Supermarket Association of Japan (NSAJ).
Japanese people pay great attention to health when it comes to foods. Thus, if any food products meet this criterion, they are welcomed into the Japanese market, Tomihari told the local media at a press conference held on October 30 in HCMC to introduce Supermarket Trade Show 2019.
Vietnamese enterprises can consider exporting Vietnamese specialties such as pho, or Vietnamese dried noodles, and dried rice vermicelli to Japan as these foods are made of rice flour, rather than wheat flour like the noodles currently available in Japan. Moreover, dried noodles are convenient for shipping, so transport costs are lower than those of fresh noodle, remarked the NSAJ representative.
The representative added that the number of Vietnamese food products is still modest in the Japanese market as few Vietnamese food traders are aggressive in participating in trade shows or shipping products to Japan.
Discussing consumer trends in the East Asian island country with the media, Tomihari noted that young consumers, aged between 20 and 30 years, have a habit of shopping at food stores selling foreign foods. Vietnamese food exporters can target this niche market to ship local healthy foods to Japan. Popular specialties such as pho may have a higher chance of being selected by importers, he pointed out.
Apart from that, local food exporters should obtain deep insights into the target market as well as seek a third party company to conduct trading activities to facilitate exports to Japan.
For the Japanese side, its enterprises seek to export fruit, particularly apples, and confectionery to the Vietnamese market, according to the NSAJ representative.
Regarding the upcoming expo being hosted by NSAJ, the Supermarket Trade Show 2019 is scheduled to kick off in February 2019 in Japan’s Chiba Province.
Mid-term investment capital for public projects in the 2019-2021 period is expected to run short of some VND60 trillion. Meanwhile, funding from Government bonds is thinly spread instead of being channeled into key projects as every locality has been allocated capital for their own projects, said National Assembly (NA) deputies on Monday.
Deputy Nguyen Truong Giang of the Central Highlands province of Dak Nong pointed out the reasons behind the shortage of the investment budget used to execute the financial plan for the 2009-2021 period.
He cited a mid-term report of the Government as saying that central budget capital would provide VND414.5 quadrillion for public projects, while its capital allocations would amount to an estimated VND475.4 quadrillion in the next three years.
The possible shortfall of some VND60 trillion does not include capital from a coastal road project, where the investment format was changed from a public-private partnership to State budget investment.
Further, instead of issuing G-bonds worth VND60 trillion, the Government plans to take foreign loans aligned with specific projects.
According to Giang, projects funded by G-bond issues will likely suffer capital shortages. He urged the Government to assess its investment capital sources carefully.
He said that the NA’s Resolution 26 on the medium-term public investment plan for the 2016-2020 period must be properly executed. More specifically, capital reserves should be used only when the revenue sources of the State budget are as planned or to meet crucial, urgent and force majeure objectives.
The Government’s plan to use this source of capital reserves for debt payment is unreasonable, he said.
Deputy Vu Thi Luu Mai of Hanoi said the mid-term public investment plan could have been disrupted because every locality has at least one public investment project.
Mai suggested that the total investment for the 2016-2020 period has amounted to VND2 quadrillion, which has been allocated to 9,620 projects of all scales. She said many projects are now in financial distress.
Meanwhile, Deputy Hoang Quang Ham of Phu Tho Province pointed out that the allocation of investment capital from the central State budget for the remaining two years runs contrary to the Law on Public Investment. He said that the allocation would be ineffective and would create an ask-and-give mechanism.
Trade on the local stock market kept contracting today, October 30, as investors remained cautious, with trading value on the Hochiminh Stock Exchange edging 9% lower than on Monday to a three-month low of more than VND2.9 trillion.
The VN-Index closed the day almost flat at 888.69 points, inching down 0,01%, versus the previous day and marking the lowest in 11 months. Market breadth was neutral with 142 stocks rising and 148 others falling.
Bank stocks again took the lead by liquidity. MBB and STB reported matching volume of over five million shares. Other banks such as VPB and CTG saw around one million shares traded each.
The HNX-Index of the Hanoi Stock Exchange, meanwhile, performed well as strong demand drove up large caps, advancing 0.54% against the previous session at 101.72 and easing off its six-day losing streak.
Trade on the northern bourse sharply improved as volume and value jumped 33% and 31% at 37.5 million shares valued at VND509.5 billion.
Among bank stocks, top heavyweight ACB gained 1.8% at VND28,500 with matching volume of 3.6 million shares. SHB was the most liquid stock on the northern market with 7.1 million shares changing hands but the lender moved sideways at VND7,500.
Petroleum technical service firm PVS was among the key index contributors as it added 2.9% at VND17,900 per share. Other oil and gas firms such as PVC, PLC and PGS also advanced nicely.
Saigon-Hanoi Securities Company in its today’s report said the market went through a lackluster day as the two exchanges saw a combined trading value of lower than VND3.5 trillion.
For the HCMC bourse, the only bright note was the VN-Index managed to stay above the supporting level of 885 points. At present, risks for investors abound, such as the U.S. market, the trade war between the U.S. and China and the Chinese yuan exchange rate.
The index is predicted to test the 885-point level again tomorrow. If it drops to below this level, it would fall further to the next supporting range of 795 and 815 points, the brokerage commented.
Bao Viet Securities Company, meanwhile, expected the VN-Index to recover slightly in the next few days as many promising stocks declined sharply after nine falling sessions in a row. Besides, investor sentiment improved today as the index loss was insignificant.
A 1.7 trillion VND (73.1 million USD) weaving factory invested by Bao Minh company has just opened in the northern province of Nam Dinh, which is expected to generate more than 800 new jobs in the locality.
The factory, covering over 100,000sq.m, is designed to produce over 35 million metres of fabric each year – 70 percent of which will be yarn-dyed, earning 1.1 trillion VND (47.3 million USD) in the 2018-2020 period and 2.1 trillion VND (90.3 million USD) from 2020.
There are many pieces of high technology equipment that are new in Vietnam, including the Enterprise Resource Planning (ERP) solution, to be used at the factory.
According to Tran Dang Tuong, General Director of Bao Minh Company, the firm has invested more than 80 billion VND to build 160 apartments for 700 workers to live in for free.
Addressing the launching ceremony, Deputy Minister of Industry and Trade Tran Quoc Khanh said that the operation of the factory will help deal with problems in Vietnam’s apparel sector in terms of the development gap between sewing and waving-dying processes.
He expressed his hope that the factory will become the leading woven fabric factory in Vietnam, while ensuring the firm’s social responsibilities.
FDI disbursement hits over $15 billion in ten months
Capital disbursement of foreign direct investment (FDI) projects stood at 15.1 billion USD as of October 20, up 6.3 percent year-on-year, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
This year to October 20, the country granted investment certificates to 2,458 new projects with 15 billion USD of registered capital, equal to 92.2 percent of the figure of the same period of 2017, and allowed 954 existing projects to add a total of 6.5 billion USD, equal to 90 percent year-on-year.
From January to October, foreign investors’ capital contribution and share purchase were valued at 6.3 billion USD, tantamount to 98.8 percent of the same period last year.
Foreign investment was poured into 18 sectors, with the processing and manufacturing industry absorbing the most - 13.2 billion USD, or 47.5 percent of total registered capital.
Other attractive fields were real estate, and wholesale and retail with 5.7 billion USD and 2.3 billion USD respectively, accounting for 20.4 percent and 8.5 percent of total investment.
As many as 105 countries and territories have made investment in Vietnam in the period. Japan tops the list with 7.6 billion USD, making up 27.5 percent of total investment; followed by the Republic of Korea with 6.5 billion USD (23.4 percent); and Singapore with 3.9 billion USD (14 percent).
The FIA said foreign firms invested in 59 cities and provinces nationwide, of which Hanoi attracted the largest share with 6.15 billion USD, or 22 percent of total investment. Ho Chi Minh City came second with 4.6 billion USD (16.5 percent), and Ba Ria-Vung Tau ranked third with 2.4 billion USD (8.8 percent).
Major projects in the reviewed period are a smart city project worth over 4.1 billion USD in Hai Boi commune, in Hanoi’s Dong Anh district invested by Japan’s Sumitomo Corporation; and a polypropylene (PP) plant and liquefied petroleum gas (LPG) warehouse worth 1.2 billion USD in Ba Ria-Vung Tau invested by the RoK’s Hyosung Corporation. Meanwhile, the Singapore-invested Laguna resort project in Thua Thien Hue received an addition of 1.12 billion USD.
The FDI sector exported 143.4 billion USD worth of goods in the period, including crude oil, showing a year-on-year rise of 13.2 percent and making up nearly 72.2 percent of the country’s total export turnover.
Can Tho city’s retail sales and services up 12 percent
Total revenue from retail sales and services in the Mekong Delta city of Can Tho is estimated at 100.5 trillion VND (4.28 billion USD) during the January-October period, accounting for 85.5 percent of the yearly plan and an increase of 12.5 percent year-on-year.
At the municipal People’s Committee’s regular meeting on October 30, Director of the city’s Department of Planning and Investment Nguyen Van Hong said that retail and service revenues are expected to reach 120.5 trillion VND (5.14 billion USD) for the whole of 2018, surpassing the set target by 2.47 percent and surging 12.26 percent from the previous year.
The positive growth in retail sales and services has been spurred by the city’s efforts in improving its transport infrastructure, which in turn has facilitated the transportation of goods and travel for both local people and tourists.
Reform of administrative procedures has made the city more attractive to investors, while on the other hand, it has bolstered internal trade activities, especially in the spheres of food, garment and textiles, consumer goods and materials, among others.
As the city has paid due attention to calling for infrastructure investments for trade development, convenient stores and shopping malls are consequentially booming across the locality.
Import-export activities are also billed as a highlight that contributes to the city’s socio-economic development. In the 10-month period, the city gained more than 1.6 billion USD from exports of goods and services, or 91.3 percent of the yearly plan and surging 13.7 percent from the same time last year. The figure for the whole year is forecast at 1.94 billion USD, exceeding the set goal by 3.18 percent.
Regarding tourism, the city welcomed 7.4 million visitors in the period, a year-on-year increase of 13.5 percent. It expects to greet some 8.42 million visitors by the end of this year, and pocket 3.5 trillion VND (149.4 million USD) from tourism services, rising 21.7 percent from 2017 and 1.8 percent higher than initial estimates.
Hau Giang, RoK firms work to promote high-tech agriculture
Officials from the People’s Committee of the Mekong Delta province of Hau Giang met with representatives from the organisation for agricultural technology transfer and trade (FACT) and several enterprises from the Republic of Korea (RoK) on October 30 towards implementing high-tech agriculture projects in the locality.
Vice Chairman of the provincial People’s Committee Truong Canh Tuyen briefed RoK firms on the locality’s socio-economic development, agricultural production, and the future development of Hau Giang’s high-tech agriculture.
He expressed his hope that the cooperation between Hau Giang, FACT, and RoK enterprises will continue to be promoted in the future.
FACT’s Kim Jin Hean said that RoK firms have a deep understanding of the trend of clean cultivation in Hau Giang, saying he hopes that the cooperation between his agency, the locality, and the Hau Giang high-tech agriculture sector will be strengthened, contributing to improving the value chain of local agricultural products.
In late May, FACT signed an agreement with Hau Giang to increase the use of RoK biological products for the cultivation of pineapple, pomelo, and mangoe. Accordingly, the organisation will provide 17,000 USD worth of 20 key biological products to the locality.
In 2017, FACT ran a cooperation project with a village in the local commune of Vinh Vien, Long My district, under which it supplied 13 biological products and some technological equipment for rice cultivation over two crops on an area of 14ha, at a cost of 8,370 USD.
In the time to come, RoK enterprises will coordinate with the Hau Giang high-tech agriculture sector to build value chains for the locality’s key produces.
Dong Nai: $1.2 billion of FDI disbursed
Disbursement of foreign direct investment (FDI) in the southern province of Dong Nai has reached 1.2 billion USD so far this year, accounting for over 80 percent of the total FDI poured into the locality in the period.
Mai Van Nhon, deputy head of the Management Board of Dong Nai Industrial Parks, attributed the situation to determination of investors, favourable business environment of the locality and efforts by provincial authorities in simplifying administrative procedures.
Disbursement of investment in major projects registered in 2017 was completed. Meanwhile, that of new projects or those who registered additional capital in early this year also shows positive performance.
Statistics released by the management board shows that in the first seven months of 2018, Dong Nai collected 397 million USD of tax and others from FDI firms, recording a year-on-year rise by 80 million USD.
Currently, the province is home to 1,370 valid FDI projects from 45 countries and territories worth over 28 billion USD. The locality aimed to lure about 2 billion USD of FDI in 2018.
Petro price hikes push Hanoi’s CPI up 0.24 percent
Hanoi’s consumer price index (CPI) in October increased 0.24 percent month-on-month and 4.09 percent year on year as transport costs rose 1.42 percent due to the petrol price hikes, according to the Hanoi Statistics Department.
The price of petrol was reduced on October 22 by between 144-224 VND per litre, but the decrease was not significant compared to the previous increase on October 6 by between 577-675 VND per litre, so the average price of petrol was still rising.
The group of garment, hats and footwear saw the highest price increase at 0.48 percent month on month. The price for the group of culture, entertainment and tourism services increased 0.44 percent over the previous month. The growth rate of the price of other goods was not significant.
Some prices of items in the garment group tended to increase slightly due to higher demand for winter-autumn garment products as the weather in the north cools down.
The housing, electricity, water, fuel and building materials prices increased 0.31 percent over the previous month.
Two groups that saw a reduction in the price index were the restaurant and catering services, and post and telecommunications. After a long period of price rises, the price of restaurant and catering service fell by 0.08 percent month on month. Food prices dropped by 0.12 percent over the previous month due to the fall in prices of pork, poultry meat and most vegetables.
The pork price fell by 3,000-5,000 VND per kilo due to high pork supply. At the same time, large livestock companies have continuously reduced pork prices, affecting the pork price in the domestic market.
The weather is very favourable for the development of winter vegetables so the market has a high supply of vegetables, leading to a low price for vegetables. The prices of aquatic products such as fish, clams, squid and shrimp increased slightly due to higher transportation costs.
This month, prices for both of gold and US dollar increased by 0.4 percent and 0.23 percent, respectively, over the previous month.
Top brands to take part in textile expos
Technologies, equipment, products, and services used in the textile and garment industry will be displayed at the Vietnam International Textile and Garment Industry Exhibition and the Vietnam International Textile and Apparel Accessories Exhibition to be held in HCM City from November 21 to 24.
They will have more than 400 exhibitors, including 100 top brands from 11 countries and territories including China, Germany, Hong Kong, India, Japan, the Republic of Korea, Malaysia, Portugal, Taiwan, Turkey, and Vietnam.
Famous brands like Bao Lun, Richpeace, Tajima, and ZSK will display their latest embroidery machines and Heinz Walz, Epson, Grafica, and Sulfet their printing machines.
Beworth and Silk Road will have their latest flat knitting machines and Maika will present a textile CAD system. There will be Japanese sewing machines brands like Brother, Hikari, Juki, and Yamato.
Several seminars will be hosted on topics ranging from strategies to practical solutions to develop the textile and garment industry.
They will be organised by Vinexad National Trade Fair & Advertising J.S.C., Yorkers Trade & Marketing Service Co., Ltd., Guangdong Sewing Equipment Chamber Commerce and Paper Communication Exhibition Services, and the Hong Kong Apparel Machinery Association.
They will be held concurrently with the Vietnam International Footwear Machinery and Material Exhibition (VFM) and the 8th Asia International Dye Industry, Pigments and Textile Chemicals Exhibition (InterDye Asia 2018).
VFM will introduce injection machines; footwear, artificial leather, handbag, suitcase, and shoe knitting machinery; CAD/CAM systems; and footwear materials representing a wide selection of components in the footwear value chain.
It will be organised by the Guangdong Shoe-Making Machinery Association, Vinexad, Yorkers Trade & Marketing Service Co., Ltd., and Paper Communication Exhibition Services.
InterDye Asia 2018 will exhibit dyestuffs; intermediates; organic pigments; textile chemicals; equipment for related production; analysis, inspection, testing, monitoring, dyeing, and printing equipment; printing materials; graphic arts; paper; paints; wallpapers; and lacquers.
The co-location of the four events under one roof will introduce alternative choices of advanced manufacturing equipment, technology and relative supporting system to local entrepreneurs.
According to the organisers, garment and textile and footwear industries are two major export earners of Vietnam.
The industries have great potential for further development thanks to Vietnam’s participation in many FTAs and advantages in terms of manufacturing and labour.
They will be held at the Saigon Exhibition and Convention Centre in District 7.
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