Vietnam introduces investment, trade potential in Belgium

Scene at the event 

Vietnam’s potential and advantages in investment and trade once the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) take effect were introduced at the ASEAN Trade and Investment Forum in Brussels, Belgium, on April 4.

Speaking at the forum, Nguyen Canh Cuong, Minister Counsellor and head of the Vietnam Trade Office in Belgium and the EU, briefed on Vietnam’s import-export with the EU in general and Belgium in particular as well as the country’s major competitive advantages.

Vietnam considers the EU one of its top partners, he said, adding that when the EVFTA and EVIPA are signed and ratified in the near future, investors in the Vietnamese market, particularly those operate in the IT and green industries and at manufacturing-processing industrial parks, will be offered investment and tax incentives.

Once the EVFTA goes into effect, the EU will eliminate import duties on approximately 85.6 percent of its tariffs lines on Vietnamese products. After seven years, 99 percent of EU tariffs will be removed for Vietnamese products. Vietnamese textiles, footwear, and seafood products (except for canned tuna and fish balls) will incur no import duties within seven years after the agreement takes effect.

Vietnam will eliminate 65 percent of its import duties on EU items and has drawn up a roadmap to eliminate tariffs by over 99 percent over the next decade. The remaining export items will be offered tariff quotas with an import duty of zero percent.

The forum was organised by the ASEAN-Brussels Committee, bringing together almost 200 representatives from leading Belgian and EU companies.

The Association of Southeast Asian Nations (ASEAN) comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand, Singapore and Vietnam.

On the back of rising purchasing power of its 630 million citizens, the 10-member bloc has a collective GDP of 2.8 trillion USD, making it the sixth-largest economy in the world.

Vietnamese, Philippine firms seek cooperation in machinery, electrical products

Vietnamese firms introduced their capacity for producing machinery and electrical products to Philippine partners during a business networking event in Hanoi on April 5. 

Nguyen Phuc Nam, deputy head of the Asian-African market development development under the Ministry of Industry and Trade (MoIT), said the event offered a chance for businesses of the two countries to cooperate, contributing to boosting Vietnam’s exports to the Philippines. 

Over the past few years, bilateral trade has enjoyed notable strides, with revenue exceeding 4.7 billion USD in 2018, up 18 percent year-on-year, according to Le Hoang Tai, deputy head of the MoIT’s Department of Trade Promotion. 

The Philippines is Vietnam’s fifth largest trade partner in the Association of Southeast Asian Nations (ASEAN), after Thailand, Malaysia, Indonesia and Singapore. It has been seen as one of Vietnam’s most promising markets in recent years. 

Statistics show that Vietnam’s export turnover to the country reached 3.5 billion USD last year, up 22.2 percent against 2017. 

In the first two months of this year, Vietnam’s import-export value to the Philippines hit 803 million USD, a rise of 18.3 percent compared with the same period last year, of which export revenue was 587.3 million USD, up 19.17 percent year-on-year. 

Tai said that many Vietnamese products like coffee, seafood, garment-textiles, construction materials, and machinery and equipment, have gained a foothold in the Philippine market of 107 million people. 

He added that Vietnam holds huge potential for exports to the economy – which ranks fifth in ASEAN – especially in electrical equipment, power lines, and cables.  

Hero Yu, President of the Federation of Electrical and Electronics Suppliers and Manufacturers of the Philippines Inc. (PESA) and General Director of Yu Eng Kao Electrical Supply and Hardware Inc., said that the 12 PESA businesses participating in the event hope to seek suppliers of machinery and electrical products in Vietnam. 

During the business matching event, the PESA and the Vietnam Electrical Industry Association (VELINA) signed a memorandum of understanding on cooperation in the electricity sector. 

State budget surplus recorded in Q1: finance ministry

The press conference of the Ministry of Finance on April 5 

The Ministry of Finance (MoF) has announced the outcomes of the implementation of financial and budgetary tasks in the first quarter of 2019, noting that there was a state budget surplus during this period.

At a press conference on April 5, the MoF reported that total state budget revenue reached 381 trillion VND (over 16.4 billion USD) during the last three months, equivalent to 27 percent of the targeted figure for this year – higher than the 23 percent of annual targeted revenue achieved during the same period last year.

That sum included 315.4 trillion VND gained from domestic sources, up 13.8 percent year-on-year, the ministry said, adding that 49 of the 63 provinces and centrally-run cities had revenues from domestic sources equivalent to over 24 percent of their estimates for this year. Fifty-four localities reported year-on-year increases in their Q1 revenues.

Meanwhile, the state budget spending during the period surpassed 315 trillion VND, equivalent to 19.3 percent of this year’s spending estimate.

The MoF said spending tasks have been performed in line with the set plans, ensuring social security. As the spending demand in Q1 was low, there was a budget surplus.

Several economic experts held that the restructuring of the state budget has resulted in positive outcomes. Revenues from unstable sources decreased in the three months, including that from crude oil (12.28 trillion VND – down 14.3 percent year-on-year).

Assoc. Prof. Le Xuan Truong, Dean of the Taxation and Customs Faculty at the Academy of Finance, said the structure of state budget revenue has become steadier in recent years. Revenue from domestic sources has been rising fast, accounting for 82 percent of the total state budget revenue in 2018.

However, he also pointed out the unsustainability of the state budget revenue structure for many localities, noting that their budget collection still mainly depends on land-related revenue – an unsustainable source – while contributions from production and business activities have failed to reach the set targets.

The MoF also admitted some big problems such as tax losses, late tax payment, and transfer pricing, which will require the financial sector to tighten control to ensure stable revenue and fair tax collection among businesses.

Truong said authorised agencies should prioritise creating an optimal environment for production and business so as to consolidate the foundation for state budget collection.

In the long term, it is necessary to press on with economic restructuring towards capitalising on Vietnam’s advantages, as well as to promote enterprise participation in stages with high added value in global value chains, thus improving their operational efficiency and the economy’s competiveness.

Effective economic restructuring will positively affect the state budget revenue structure, he concluded. 

IFC to help HCM City build medical facilities through PPP

HCM City authorities present souvenir to country manager for Vietnam, Laos and Cambodia of the International Finance Corporation Kyle Kelhofer (third from left) 

Standing Vice Chairman of the People’s Committee of Ho Chi Minh City Le Thanh Liem held a working session with Kyle Kelhofer, country manager for Vietnam, Laos and Cambodia of the International Finance Corporation (IFC), on April 5.  

On the occasion, the two witnessed the signing of a PPP advisory services agreement for the daycare hospital of the Pham Ngoc Thach University of Medicine between the IFC and the university.       

Vice Chairman Liem stressed that the signing of the advisory services agreement marks the success of the partnership between the IFC and HCM City’s Health Department, Department of Planning and Investment, and the Pham Ngoc Thach University. When completed, the project will provide a training centre, a general clinic and a daycare facility, serving around 300,000 patients a year. 

Moreover, the successful implementation of the project will pave the way for more projects in the form of public-private partnership (PPP) between HCM City and the IFC, he said. 

The official used the occasion to thank the IFC for its active coordination with HCM City’s agencies in implementing the content of the memorandum of understanding between the city and the IFC, which was signed during a trip of a city delegation to the US in December 2017. 

HCM City hopes to receive more support and advice from the IFC in other fields such as building smart city, urban management, innovation and environmental protection, he said.           

The IFC official said with global experience and expertise in PPP advisory services, the IFC is a suitable partner of HCM City in developing projects serving the city’s priorities in infrastructure and social development, helping the city save public resources while increasing the public’s access to quality services.  

According to Kelhofer, with the assistance of Hungary and the Rockefeller Foundation, the IFC will conduct detailed assessment and compile a report on different options for the project of the Pham Ngoc Thach University in the next six months. Bidding for the project is slated to be held at the end of this year, with the results to be announced in mid-2020.

Seminar helps SMEs start business

A seminar seeking measures to help small and medium-sized enterprises (SMEs) start their business operations took place in Hanoi on April 5. 

Co-hosted by the Ministry of Planning and Investment (MPI), Ibosses Vietnam, and the Association of Chartered Certified Accountants (ACCA), the event aimed to promote economic growth based on science, technology, and innovations. 

Deputy head of the MPI’s Enterprise Development Agency Bui Thu Thuy suggested that Vietnam should adopt strategies to promptly grasp trends and acquire successful lessons from countries in support of SMEs, adding that the Fourth Industrial Revolution affords developing countries rare opportunities to make new economic strides. 

Chairman of Ibosses Vietnam Tang Ngoc Truong An said that compared to startup countries – such as Israel, the US, China, and Singapore – Vietnam is only in its early stages. 

According to the Vietnam Chamber of Commerce and Industry (VCCI)’s startup index 2017-2018, Vietnam needs to deal with its financial and technological issues. 

In the rankings of business conditions among 54 countries, Vietnam ranked fifth in terms of dynamism in its domestic market, sixth in social and cultural norms, and tenth in infrastructure. 

However, the country was placed 39th in finance, 40th in business education after high school, and 34th in technological transfer. 

An said SMEs and startups now receive further support from the Government, financial institutions, and the startup ecological system, yet those with international-standard governance and financial transparency are more likely to succeed. 

Introducing the National Innovation Centre (NIC) to participants, An said NIC will acquire international experience as well as pool private financial resources and governance from foreign experts. 

He said NIC requires effective pilot programmes and support from ministries, agencies, associations, investors, banks, and educational establishments. 

ACCA Regional Consultant for ASEAN, Australia, and New Zealand Sharath Martin said SMEs need to build their own growth goals, visions, and strategies. Accordingly, growth strategies should be built on prospect forecasts as well as organisational structure and behaviors. 

ACCA will introduce a set of tools for SMEs to fully tap business expansion opportunities and successfully pitch for capital. 

Official highly values Keppel’s activities in HCM City

Chairman of the Ho Chi Minh City People’s Committee Nguyen Thanh Phong (fourth, right) and the high-ranking delegation of Keppel Corporation pose for a photo 

Chairman of the Ho Chi Minh City People’s Committee Nguyen Thanh Phong expressed his appreciation for Singapore’s Keppel Corporation projects while receiving its CEO Loh Chin Hua on April 5.

The host spoke highly of Singaporean investors’ activities in HCM City, noting that some firms have been operating there for over two decades. Singapore now tops the 103 countries and territories investing in the city.

He said HCM City will continue perfecting its investment climate so as to further facilitate domestic and foreign investors’ activities.

Keppel – with its property and infrastructure projects, lifestyle services, and other ventures – has been a trustworthy and important partner of HCM City for many years, Phong noted, valuing its Saigon Sport City project in District 2 and the Saigon Centre 3 project in District 1. He pledged that all necessary procedures for these projects’ implementation will be completed soon.

Sharing its development strategy for the eastern area, the official said HCM City is planning to build an innovative urban area connecting District 2, District 9, and Thu Duc district. He asked Keppel to continue investing in the projects under the city’s development orientations.

At the meeting, Loh, who is also Executive Chairman of Keppel Land, thanked municipal authorities for creating conditions for his group to access investment opportunities over the past nearly three decades.

Keppel operates not only in the field of real estate, but also navigation, oil and gas, information infrastructure, sustainable solutions for living environments, and smart city building, he noted.

Highly valuing the development potential of different fields in Vietnam, he said HCM City is a market with so many possibilities on offer and that Keppel wishes to become a long-term partner of the city in the urbanisation process.

Loh expressed his belief that with its combination of technology, experience, and knowledge, Keppel will further contribute to local development in the time ahead. 

Bamboo Airways to open air route to Japan  

Vietnam’s newest carrier Bamboo Airways said on April 5 that it will start operating charter flights to Japanese prefecture of Ibaraki during the Golden Week in Japan.

At a press conference the same day in Ibaraki, a representative from the airline said it will operate daily charter flights using Airbus A321 Neo aircraft from April 28 to May 2 from Vietnam to Ibaraki airport and vice versa.

Deputy Director General of Bamboo Airways Duong Thi Mai Hoa said the launch of flights to Ibaraki is due to the locality’s hosting of many tourist sites and its close proximity to Tokyo, which are expected to attract a lot of Vietnamese tourists.

She hoped the route will create a momentum to boost the cooperation between the Japanese prefecture and Vietnamese localities as well as the economic ties between the two countries.

At first, the airline will run charter flights and will later study to open regular flights to Japan when travel demand is rising in a stable manner.

Governor of Ibaraki Kazuhiko Oigawa said the launch of the air route to Ibaraki by Bamboo Airways will create a good opportunity for the province to further enhance its relations and exchanges with Vietnam.

Coming to Ibaraki, visitors will have a great chance to visit a number of popular sites such as Kairakuen garden – one of the three most beautiful gardens in Japan, Hitachi Seaside Park – one of the best places in Japan to view flowers all year round, and Ushiku Budda – the world’s largest bronze statue. 

According to Bamboo Airways, besides Ibaraki, the airline plans to open more charter flights to other Japanese prefectures such as Okinawa, Fukushima and Wakayama.

In the long run, it will develop regular flights between Vietnam and Japanese urban centres.

Vietnam is becoming a favourite destination of Japanese tourists and more Vietnamese are interested in exploring Japan’s beauty and culture.

Over VND2.1 billion robbed from Dau Giay tollgate returned to VECE

The investigative police of the southern province of Dong Nai has decided to return more than VND2.1 billion, which was robbed from the Dau Giay toll station of HCMC-Long Thanh-Dau Giay Expressway, to Vietnam Expressway Services Engineering JSC as the expressway manager, the local media reported.

An executive at Vietnam Expressway Corporation (VEC) noted that the police had earlier seized nearly VND1.74 billion in cash as well as 10 taels of gold and a golden necklace, valued at VND371 million and VND5.2 million, respectively, on February 7, from two robbers.

The armed, masked robbers had stormed into the Dau Giay tollgate in Dong Nai Province’s Thong Nhat District, threatened the staff of the toll station and taken the money.

The Dong Nai police later arrested two suspects, Tran Tuan Anh and Nguyen Vu Hoang Nam, while investigating the robbery.

Regarding the stolen cash, the VEC leader remarked that during the Tet holiday, its bank partner did not pick up the toll revenue at the tollgate, leaving VND3.2 billion in cash in the tollgate’s coffer. The revenue was earned over multiple days rather than in a single shift.

Shipping containers are handled at the SP-ITC International Container Terminal in HCMC’s District 9 

HCMC posted solid economic growth in the first quarter of this year but six out of nine key fields in the services sector witnessed lower growth than a year earlier.

This was revealed at a city government meeting held earlier today, April 4, to discuss the city's socioeconomic performance.

The city reported a gross regional domestic product growth rate of 7.64% in the three-month period to reach roughly VND324.5 trillion (US$13.9 billion). Among the various sectors, services accounted for 63.1%, growing 7.7% from a year earlier.

Some services fields, such as trade, finance, banking and insurance, transport and warehousing, tourism, real estate and healthcare, recorded higher year-on-year growth, ranging from 6.6% to 9.1%, but these rates were still lower than in the first quarter of 2018.

The city’s total exports, including crude oil, between January and March this year were estimated at more than US8.9 billion, a 5.7% year-on-year rise, compared with the 10.6% expansion in the same period of 2018.

Its imports rose by 1.3% year-on-year to US$10.8 billion, whereas the year-on-year pace during the first quarter last year was much higher at 12.8%.

Local firms mainly imported equipment and materials for their manufacturing operations, such as machinery, tools and spare parts, computers and electronics and their accessories.

The lower year-on-year growth rates of imports and exports were ascribed to the fact that global trade has been adversely impacted by the United States’ measures to reduce its trade deficit for the sake of creating a gradual trade balance. In addition, many other countries have taken steps to protect their domestic production.

The city’s chairman, Nguyen Thanh Phong, noted at the meeting that some steps have been taken but slowly as the local government is suffering a lack of key leaders. Phong currently has just two deputies, instead of five as allowed by the prevailing regulations.

Phong said that the city is awaiting approval from central authorities to appoint two new deputy chairpersons.

Regarding hindrances to the execution of certain real estate projects, he blamed the land use plan approved by the city government, saying its department of natural resources and environment still did not know how to follow the plan properly. He added that instructions from the Ministry of Natural Resources and Environment were not detailed enough.

The city did not make much progress in the equitization of local State-owned enterprises because it was seeking approval from Prime Minister Nguyen Xuan Phuc.

In connection with compensation for and the resettlement of the affected households in the Thu Thiem New Urban Area in District 2, he said that the prime minister has given the city government the go-ahead to approve 4.3 hectares of land outside the approved boundaries of the new urban area, where the site was wrongly reclaimed by former city authorities.

The local government is working with the Construction Ministry and other central agencies to reach a final agreement, he noted.

HCMC chairman requests sanctions against violators at IPC

Chairman of the HCMC People’s Committee Nguyen Thanh Phong has asked the chairman of the Members’ Council at the State-run Tan Thuan Industrial Promotion Co., Ltd, (IPC) to hold accountable those responsible for serious violations at the company, following the findings of the local inspectorate.

According to a statement by the Office of the HCMC People’s Committee, the chairman of the Members’ Council at IPC, the legal representative of the company, has been assigned to determine the liability of the accused individuals and to work with the company’s Party unit to handle them in line with the Party rules.

The company’s chairman will have to take steps to tackle its outstanding debts of roughly VND70 billion.

In addition, he has to ask the relevant individuals and collectives to reimburse interest payments totaling more than VND8 billion arising from the total value of bank loans, at some VND400 billion, taken in 2016 and 2017.

He has been asked to strictly and fully resolve violations by the company’s employees in terms of compliance with State and Party regulations on overseas travels, whether they are on business or private trips.

IPC has to adjust its office-for-rent work at its headquarters, in line with the guidelines of the city government. The company has been ordered to work with the relevant departments and agencies to complete procedures allowing its empty spaces to be put to the full use.

The company also has to make adjustments to the process of choosing contractors in line with prevailing bidding regulations.

The results of these assignments must be reported to the city government by late July this year.

IPC is wholly owned by the HCMC People’s Committee with total charter capital of VND2.9 trillion. The company had a strong capacity and was assigned many lots of land and major projects, but it has committed a host of serious violations.

For example, IPC was found to have lowered its holdings in its associated companies, especially Hiep Phuoc Industrial Park JSC (HIPC) in the outlying district of Nha Be.

According to the findings of the city’s inspectorate, which were released last year, HIPC had charter capital of VND300 billion, of which IPC provided over 60% of the sum, equivalent to over VND182 billion.

In December 2016, IPC issued 20 million shares of HIPC to Tuan Loc Construction Investment Corporation at a price of VND15,000 per share. The move led to a decline in HIPC’s ownership in HIPC to 40%.

Inspectors said that the recognition of Tuan Loc Co. as a strategic shareholder had no legal basis. In addition, the stake selling price was lower than the actual value of HIPC, which could have created losses for the State and State shareholders.

According to the findings of the inspections, these violations showed signs of groups’ interest and potentially ran counter to Article 179 of the 2015 Penal Code on negligence leading to State asset losses.

Earlier this month, the city government decided to transfer the investment rights of IPC in two major traffic projects in the city to the municipal management board for traffic construction investment projects. The move was due to the slow execution of the projects.

Retail sales, consumer service revenue rise 12 percent in Q1

Consumers shop at a supermarket 

The total goods retail sales and consumer service revenue surpassed 1.18 quadrillion VND (over 50.8 billion USD) in the first quarter of 2019, up 12 percent year on year, according to the Ministry of Industry and Trade (MoIT).

That figure included 392.2 trillion VND in March, up 0.9 percent from the previous month and 12.1 percent from the same period last year.

The MoIT said the sustained growth in the retail sales and consumer service revenue was supported by the sufficient supply of goods although the global economic growth tended to slow down in the first months of the year.

The domestic market has been kept stable with abundant goods supply and stable prices. During the period, it was mainly fuelled by the surged demand in preparation for the Lunar New Year holiday which fell in early February.

The MoIT’s Domestic Markets Department hasn’t seen any factors that may have negative impact on the domestic goods market in the time ahead. It forecast this year’s total retail sales and consumer service revenue will still grow by the targeted rate of about 12 percent from 2018.

Deputy Minister Cao Quoc Hung said to remove production and business bottlenecks and promote economic growth, the MoIT will press ahead with solutions to create development breakthroughs in the domestic market and foster export, especially the shipment of agricultural products.

The ministry will perfect legal regulations and policies on trading infrastructure, and attract more domestic and foreign investment to developing wholesale markets.

It will also coordinate with relevant agencies and organisations to resolutely carry out the law on support for small- and medium-sized enterprises so as to assist these firms to take part in Vietnamese goods distribution chains in the domestic market, Hung added.

Hanoi leads nation in business registration online processing

Hanoi now leads the country in receiving and processing business registration procedures online, said head of the Business Registration Office under the municipal Department of Planning and Investment Pham Thi Kim Tuyen during a meeting in Hanoi on April 4. 

Last year, Hanoi granted business licenses to more than 25,100 newly-established firms with a total registered capital of 392 trillion VND (17 billion USD), up 3 percent in volume and 84 percent in value compared to a year earlier. 

In the first quarter of this year alone, there were over 6,200 newly-established firms with a total registered capital of nearly 52 trillion VND, up 15 percent in volume against the same period last year. 

Director of the municipal Department of Planning and Investment Nguyen Manh Quyen said Hanoi pledges to partner with enterprises in business registration in order to improve business environment and competitiveness. 

The department will cut timeline for dealing with simple procedures such as seal registration, business shutdown and changes to business activities, he said. 

Earlier, the city waived business registration fee from July 1, 2017 for online applications. 

In order to support newly-established small- and medium-sized enterprises, the city also offered a grant of 300,000 VND in business and seal registration each. 

On the occasion, the department signed cooperation agreements with units concerned to assist firms in registration for banking accounts and digital signatures. Quyen also granted business licenses to 15 newly-established firms in the city.

54.6 million jobs generated in Q1

The electricity sector sees higher labour demands during January-March. 

An estimate of 54.6 million jobs were added to the Vietnamese workforce in the first three months of 2019, up 0.11 percent from the last quarter of 2018.   

According to an update on the Vietnamese workforce released in Hanoi on April 4, a number of sectors saw higher labour demands during January-March compared to the previous period. 

They included the production and distribution of electricity, natural gas, hot water, water vapour, and air conditioners (up 18.4 percent); finance, banking, and insurance (5.8 percent); and art and entertainment (8.5 percent). 

In contrast, others were estimated to have reduced labour demands, including agro-forestry-fishery (0.8 percent); mining (7.6 percent); and realty (8 percent).

As such, the three-month GDP growth was projected to hit 6.58 percent.

The report said in the last quarter of 2018, 54.53 million people secured employment, while the number of the unemployed in the working age group stood at just over 1 million. The figures represented an increase of nearly 23,000 people and decrease of 7,600 from the previous period, respectively. 

Vietnam Airlines opens self check-in kiosks at Heathrow airport

An automatic check-in kiosk of Vietnam Airlines (Photo: Vietnam Airlines)

The national flag carrier Vietnam Airlines has announced that it will introduce automatic check-in kiosks at London’s Heathrow Airport in the UK from April 8.

The airline has already launched this service at Narita International Airport, Kansai International Airport, and Fukuoka International Airport in Japan; Incheon International Airport in the Republic of Korea; Frankfurt International Airport in Germany; and the three domestic airports of Noi Bai, Da Nang, and Tan Son Nhat.

It will also be expanding the service to Haneda Airport and Nagoya International Airport in Japan, Busan International Airport in the Republic of Korea, Guangzhou Baiyun International Airport and Hong Kong International Airport in China, and Changi International Airport in Singapore. 

The kiosk allows passengers to check in from 24 hours to 60 minutes prior to the scheduled departure time without waiting in queues.

According to the airline’s representative, the installation of the self check-in kiosks is part of its digitalisation process to bring the most convenient services to the customers. The airline has been making strides towards becoming a digital airline in the future.

As of the end of 2018, about 40 percent of the carrier’s passengers departing from Noi Bai, Da Nang, and Tan Son Nhat airports used online check-ins via website, mobile application, and airport kiosks. 

Vietnam Airlines is operating 94 routes to 21 domestic and 29 international destinations with an average of 400 flights per day, connecting the world’s major cities to travel destinations in Vietnam, Laos, Cambodia, and Myanmar.

Vietnam Airlines became a member of SkyTeam – a global airline alliance whose 20 members provide access to an extensive global network of 16,609 daily flights to 1074 destinations in 177 countries – in 2010, reaffirming the carrier’s position on the global aviation map. In 2015, Vietnam Airlines became the first airline in the world to successfully operate both next-generation aircraft Boeing 787-9 Dreamliner and Airbus A350-900 XWB at the same time.

The airline has spearheaded Vietnam’s aviation market – one of the fastest-growing domestic markets in the world – throughout its 20 years of development at a double-digit annual growth rate. Positioning itself as a modern carrier with an internationally recognisable brand characterised by Vietnamese traditional culture, Vietnam Airlines aims to achieve five-star status and become a major airline in Asia.

Binh Duong sees high growth in industrial production in Q1

The southern province of Binh Duong recorded 7.16 percent year-on-year growth on the industrial production index in the first quarter of 2019, said Nguyen Van Danh, Director of the provincial Department of Industry and Trade.

High growth was seen in a number of sectors including leather and leather products (7.51 percent), chemicals and pharmaceuticals (15.17 percent), and rubber and plastic products (9.36 percent).

However, the wood processing sector suffered a slight drop of 0.08 percent due to a lack of materials and high material prices.

According to the provincial Department of Industry and Trade, 96.07 percent of the businesses surveyed expect that their operations will be stable and better in the second quarter of 2019. 

Besides, 46.68 percent of firms predicted that orders in the second quarter will be higher than that in the first quarter, while 49.12 percent of enterprises held that the number of orders will be unchanged and only 4.2 percent foresaw declines in orders.

Regarding orders from other countries, as many as 60.25 percent of businesses expected stability, and only 3.58 percent predicted a drop in the second quarter of 2019.

Danh said that the province prioritises the expansion of the support industry and the application of advanced technology during its economic development. 

Danh said that along with improving the local business environment, the province will create favourable conditions for business households to upgrade themselves into companies.

Furthermore, Binh Duong will organise events to connect demand and supply sources for major products of the locality and promote the products in foreign markets by supporting local firms to join trade fairs at home and abroad. 

Vietsovpetro surpasses oil and gas production targets for Q1

The Vietnam-Russia joint venture Vietsovpetro reported that its oil and gas production in the first quarter of 2019 surpassed its target for the period.

In terms of oil and condensate, the firm exploited 919,000 tonnes in lot 09-1, 7.5 percent higher than the set target, and 43,700 tonnes in lot 09-3/12, surpassing the goal by 7.1 percent.

Meanwhile, Vietsovpetro’s total gas production was 39.6 million cu.m, exceeding the plan by 25 percent.

During the period, the firm sold 958,600 tonnes of oil and condensate for 487.8 million USD.

In the first quarter of 2019, Vietsovpetro’s eight new oil fields came online.

Vietnam, Thailand enhance financial cooperation in ASEAN framework

At the meeting between Vietnamese Minister of Finance Dinh Tien Dung and his Thai counterpart Apisak Tantivorawong on April 4  

Vietnamese Minister of Finance Dinh Tien Dung met with his Thai counterpart Apisak Tantivorawong on April 4, discussing priorities in finance issues in ASEAN in 2019 and 2020.

The meeting took place on the threshold of the 23rd ASEAN Finance Ministers’ Meeting (AFMM 23) and the fifth ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM 5) held in Chiang Rai, Thailand, which will both officially be convened on April 5.

Apisak Tantivorawong laid stress on the prioritised themes of the event in 2019, including payment infrastructure connection and sustainable finance, and expressed his hope that Vietnam will continue to tackle the issues when it comes to chairing the meetings in 2020.

Dung, for his part, took note of Thailand’s top priorities and said that the Vietnamese Government set up the National ASEAN 2020 Committee to make preparations for the country’s chairmanship next year. 

The same day, Dung had a meeting with Secretary-General of ASEAN Jock Hoi, during which he spoke highly of ASEAN Secretariat’s roles to the development of the block and the ASEAN Economic Community in the past time.

In the finance-banking cooperation process, the Vietnamese Ministry of Finance and the State Bank of Vietnam will join hands to take up the ASEAN Chair in 2020, he said, adding that Vietnam will closely follow the ASEAN Economic Community Blueprint 2025 and the ASEAN Financial Integration and Cooperation Process with vision until 2025, while inheriting the priorities of the previous hosts and seeing the national target as a basis to build rational contents.

Taking place from April 2-5, the 23rd AFMM, fifth AFMGM, and related meetings will discuss such issues as the liberalisation of cross-border financial services and e-payment, and the role of currencies in the region. Finance ministers will work with the Asian Development Bank (ADB) to branch out the green bond market, supporting environmentally friendly projects in the region. 

The agriculture industry posted a year-on-year growth of 2.68 percent in the first quarter of 2019, despite an array of difficulties caused by the African swine fever and unstable export markets, mainly driven by the seafood and forestry sector.

In January-March, the total seafood output reached 1.46 million tonnes, a yearly rise of 4.9 percent.

The export turnover of forestry products was estimated at 2.4 billion USD, up 18 percent against the same period last year.

The agro-forestry-fishery export turnover in the period went down 2.9 percent year-on-year to 8.8 billion USD due to reductions in rice, pepper, cashew nut, and coffee orders.

To ensure growth of more than 2.56 percent in the second quarter, the cultivation sector must double its efforts to maintain its set growth target of 1.93 percent, while the aquaculture arena needs to post a growth of 4.78 percent and the forestry sector, 5.8 percent, according to the Ministry of Agriculture and Rural Development.

The supply of primary apartments in Ho Chi Minh City (HCMC) stood at 12,000 units during the first quarter of this year, representing a drop of 34 per cent on quarter and 57 per cent on year, as noted by a professional property service provider.

The steep drop was largely caused by low inventory, administrative delays, and changes in developers’ plans, real estate services provider Savills Vietnam said in a freshly-issued report on HCMC market developments in the first quarter of this year.

The firm claims that there were a total of 4,500 primary units added to the market, down 38 per cent on quarter and 27 per cent on year. Meanwhile Grade C was the largest primary supplier with an 85 per cent market stake, mainly located in suburban areas, including Districts 8 and 9.

Quality supply that is able to deliver will be quickly absorbed, said Nguyen Khanh Duy, Director of Savills Residential Sales.

Meanwhile, primary sales posted a plunge. In total there were approximately 6,400 sales, falling by 42 per cent on quarter and 52 per cent on year. These drops were partly caused by national holidays in January and February.

Absorption was 53 per cent in the first quarter, up 5 percentage points on year. New projects accounted for 46 per cent of sales while suburban districts such as District 8, Tan Phu, and Binh Tan dominated the market. One to two-bedroom apartments continued to be highly sought-after as they meet both end-user and investment demand.

With limited primary launches, secondary prices are now on the rise. According to Savills, local authorities expect current administrative delays to be normalized in 2019.

Projects with a clear master plan are increasingly desired by prospective purchasers.

Foreign purchasers are pinning their interest on high-end projects, with the 30 per cent foreign quota quickly filling up.

This trend is predicted to continue, with higher price points expected across all grades. Grade C in particular will continue to dominate and lead the way in the domestic market.

Firms to boost exports to Taiwan

People make garments products at March 29 Textile - Garment Joint Stock Company in Da Nang City. The company specialises in manufacturing garments for exports, especially for the Taiwanese market. 

 Exporters should step up trade promotion to boost exports to Taiwan (China), which imports large volumes of farm produce and processed foods, according to Vietnamese trade officials.

According to the Ministry of Industry and Trade Taiwan is a promising market.

Besides, demand from around 300,000 Vietnamese living on the island also contributes to boosting trade with it.

Tran Nhat Trung, general secretary of the HCM City Food and Foodstuff Association, said there was still much potential for exports, especially of agro-forestry and fishery products.

But experts said Taiwan had strict regulations related to food safety and hygiene and quarantine of agro-forestry and fishery imports.

They were also regularly revised and modified, causing difficulties for Viet Nam’s agricultural exports, they said.

Taiwanese usually do not store food, so goods should be packed in compact sizes with nice designs and full information about them and instruction for use, according to the experts.

With their rising income, Taiwanese tend to try new products, and so enterprises taking their goods there need to advertise and market and provide information about them.

Taiwanese consumers rarely worry about prices once a product has sufficient information and gains their trust.

Nguyen The Hung, deputy director of the Viet Nam Chamber of Commerce and Industry’s HCM City office, said besides ensuring product quality Vietnamese exporters also needed to provide all documents and certificates related to their products, including certificate of origin, quarantine certificate and results of testing for residual chemicals in agricultural products.

To penetrate the Taiwan market, businesses should establish relationships with importers to bring goods into supermarkets, the main distribution system there, he added.

An official from the Taiwan External Trade Development Council said every year Taiwan organises major exhibitions such as the Taipei International Food Show where Vietnamese enterprises could study the market as well as promote their products.

With bilateral trade growing in recent years, both Viet Nam and Taiwan rank in each other’s top 10 trade partners.

Viet Nam exports mobile phones and parts, apparel and aquatic products to Taiwan and buys machinery, equipment and accessories.