Vietnam Airlines, Vingroup ink cooperation deal

Vietnam Airlines and Vingroup have signed a cooperation agreement to develop and provide combined aviation and tourism products for all of their air routes and tourism accommodation facilities.

The national flag carrier said the partnership aims to enhance the competitiveness of their services and bring the most benefit to customers.

Under the deal, the two sides will invest in and develop regular and charter flights from domestic and international destinations to tourism and entertainment facilities of Vinpearl – Vingroup’s tourism brand.

In these two-for-one products, customers will buy one package that contains both aviation and tourism services, helping them to save time and costs, the carrier said, noting that it will be flexible for customers to select Vietnam Airlines flights and Vinpearl accommodation facilities.

Vietnam Airlines added that the two firms will also step up cooperation in customer service programmes to provide top products and services that match the demand from customers.

General Director of Vietnam Airlines Duong Tri Thanh said the comprehensive cooperation agreement between the two major businesses of Vietnam will inspire the connection of Vietnamese trademarks. This collaboration will not only help Vietnam Airlines develop all-in aviation and tourism products and promote its competitiveness on the market, but also generate practical benefits for customers of both firms.

Echoing this view, Vice Chairman and General Director of Vingroup Nguyen Viet Quang said the deal has opened up a promising business field for his group and directly supported Vingroup in creating combined aviation and tourism services for the benefit of customers. 

Thua Thien-Hue inaugurates 35MW solar power plant

The Phong Dien solar power plant, with a capacity of 35 MW, was put into operation in the central province of Thua Thien-Hue on October 5.

Invested in by the Gia Lai Electricity JSC, the factory covers 45ha in the My Hoa hamlet of Dien Loc commune, Phong Dien district. The factory began construction in January this year and was built at a total cost of nearly 1 trillion VND (42.83 million USD).

It will produce about 60 million kWh of electricity each year and is expected to greatly contribute to local socio-economic development.

The factory’s electricity output will power the yearly consumption of around 32,630 households in Vietnam, and it is hoping to reduce some 20,503 tonnes in CO2 emissions each year, according to Thanh Thanh Cong Group – owner of the Gia Lai company.

The Phong Dien solar power plant is set to expand its capacity by another 29.5 MW in 2019.

Aside from the factory, the Gia Lai company plans to open the Krong Pa solar power plant in the Central Highlands province of Gia Lai in the upcoming fourth quarter. The project was invested with over 1.4 trillion VND (59.96 million USD) and has a capacity of 49 MW. 

EVN inks 35 solar power purchase deals with private firms

Electricity of Vietnam (EVN) has to date signed 35 power purchase agreements (PPAs) with private solar power firms that have a combined capacity of 2,271 MW.

Most notably is the agreement inked with the 35-MW Phong Dien solar power plant in Phong Dien district, in the central province of Thua-Thien Hue, which was the first solar project with access to the national grid. It was put into operation early this month.

In the first nine months of 2018, the EVN has also put into commercial use two 600-MW generator groups at Vinh Tan 4 Thermal Power Plant and two others, each with a capacity of 300MW at Thai Binh Thermal Power Plant, bringing the its total electricity generation to 28,100 MW.

From January to September, the state-run company has provided sufficient electricity supply for businesses and people nationwide, particularly during holidays, festivals, and national events.

According to the EVN, the electricity generation and imports in September reached 18.4 billion kWh, bringing the nine-month figure to 163.5 billion kWh, up 10.54 percent from the same period last year.

The power transmission totalled 137.6 billion kWh in the first three quarters of 2018, up 10.6 percent year-on-year. 

Vietjet Air to launch Da Nang-Bangkok flight

Budget airline Vietjet Air announced on October 5 that it will launch the first daily flight connecting Vietnam’s central city of Da Nang with Thailand’s Bangkok capital from October 15. 

From Suvarnabhumi Airport in Bangkok, passengers can travel onwards to Thailand’s popular destinations such as Chiang Mai, Chiang Rai, Phuket, and Krabi. 

Tickets are available on the website www.vietjetair.com or www.facebook.com/vietjetvietnam. Payments can be made by credit or debit cards that are registered with Internet banking services. 

With 60 A320 and A321 aircrafts, Vietjet runs over 385 flights per day. It has carried more than 60 million passengers to destinations across Vietnam, China, Japan, Hong Kong, Singapore, the Republic of Korea, Taiwan, Thailand, Myanmar, Malaysia, and Cambodia. 

The carrier is considering a plan to expand routes in the Asia-Pacific and has signed contracts to buy new-generation aircraft with prestigious global plane manufacturers.

Vietcombank’s profits in 9 months exceed entire 2017     

Profits of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) by the end of September are estimated to exceed the VND11 trillion (US$470 million) that the bank gained in the entire 2017.

The figure is up some 50 per cent against the same period last year.

With the rise, the bank is expected to soon surpass the VND13 trillion profit target set for 2018 at the bank’s annual general meeting of shareholders.

According to the bank, the central bank’s decision not to expand credit growth will not affect its business performance in the remaining months of the year, though the bank has already nearly exhausted the credit growth limit of 15 per cent allowed by the central bank.

The 15 per cent credit growth rate set for Vietcombank was reasonable, the bank’s representatives said, adding that it considered the credit crunch an opportunity to continuously restructure and enhance credit quality and credit risk management.

Accordingly, the bank has been shifting credit towards more efficient projects that have better collateral, and the retail banking segment that has better profit margins.

Besides, Vietcombank has been also boosting services, targeting the business segment to account for 30 per cent of its total income.

In 2018, Vietcombank targets pre-tax profit to rise by 14.6 per cent year on year to VND13 trillion from its record-high VND11.3 trillion made in 2017.

The bank also targets a yearly increase of 14 per cent in total assets and 15 per cent in both mobilised capital and credit. It also plans to cut its non-performing loan ratio (NPL) to below 1.5 per cent. 

Workshop discusses measures to enhance commercialisation of technologies     

The Government should have specific measures to enhance collaboration between academia and businesses so that more research can be converted into practical technology, a workshop heard in HCM City on Wednesday.

Speaking at the Viet Nam – Korea industry collaboration frameworks workshop, Assoc Prof Dr Le Hoai Quoc, head of the Saigon Hi-Tech Park’s management board, said the Government has policies to support businesses and scientists do research, but there are no tools to foster links between scientists and businesses.

Ninety per cent of enterprises in HCM City are micro- or small-sized ones and lack the financial and human resources for R&D, he said.

In South Korea too SMEs have insufficient resources, but the Korea Institute of Industrial Technology offers them great support, he said.

Prof Dr Nguyen Ky Phung, deputy director of the HCM City Department of Science and Technology, said there is a big gap between schools and research institutes and enterprises.

The city has always focused on commercialisation of scientific research and technology transfer between research institutes and businesses, but the results have not met expectations, he said.

When schools and institutes want to develop the market for their technologies or find partners to commercialise their scientific research ideas, they come up against policy-related hurdles, he said.

Businesses meanwhile focus on short-term commercial goals instead of long-term investment in technology and research, he said.

The country should learn from others such as South Korea and Japan to draft practical support policies to shrink the gap between academia and businesses, delegates said.

Assoc Prof Dr Nguyen Tan Tien of the HCM City University of Technology said there is close collaboration between academia and the manufacturing sector in South Korea.

A large number of Vietnamese researchers studied in South Korea and now work in almost all industries in HCM City, and this is a big advantage in establishing close collaboration, especially between South Korea and HCM City in the field of technology transfer, he said.

He called on relevant authorities to draw up policies to enhance the collaboration in engineering research and technology between South Korea and Viet Nam, especially in industrial applications.

There is a need to have a model for effective collaboration, and the establishment of a Joint Business Promotion Centre at the Saigon Hi-Tech Park with the participation of universities is needed to accelerate the collaboration between HCM City and South Korea, he said. 

Vietnamese rambutan comes to New Zealand     

Viet Nam shipped its first boxes of rambutan to New Zealand on October 3 after seven years of negotiation on exporting this fruit to the market, according to the Ministry of Agriculture and Rural Development.

Viet Nam is the first country granted a licence to export fresh rambutan to the Pacific country, reported baodautu.vn.

The exports this time had 520 boxes containing 2 kilos of rambutan each. The exported rambutan to New Zealand were approved by the ministry’s Plant Protection Department. The fruits were packaged and labeled under New Zealand’s standards.

This is the third kind of Vietnamese fruit after dragon fruit and mango entering New Zealand, a country with strict quarantine requirements.

In April, Viet Nam’s Ministry of Agriculture and Rural Development and the Embassy of New Zealand officially announced Viet Nam had permission to export its rambutan to New Zealand. This followed seven years of negotiation and efforts to meet standards on regions of cultivation, packaging, labeling, radiation treatment and quarantine.

The export of rambutan to New Zealand would open more opportunities to ship this fruit to other markets around the world.

Export volume of Vietnamese rambutan has reached more than 20,000 tonnes to markets such as the US, China, Canada, the EU, Eastern Europe, the Middle East and ASEAN.

Rambutan is grown mainly in southern provinces on an area of more than 50,000 ha, providing 300,000 tonnes a year to the local market. 

Long-delayed Khanh Hoa housing project investigated     

The State Bank of Viet Nam’s branch in Khanh Hoa has asked credit institutions in the province to report on outstanding loans, payments and guarantees for real estate developer Hoang Quan relating to its stagnant social housing project HQC.

This was one of the largest social housing projects in Khanh Hoa Province.

The project has now missed its deadline to hand apartments to buyers by two years. The contracts stipulate buyers could move into the apartments by the third quarter of 2016, but they remain unfinished.

The project is under inspection by the provincial Department of Construction, which will finish on October 15, according to the department.

In response to the anger of buyers, Hoang Quan promised to pay banking interest fees to buyers accumulated starting from July 2017 and a sum of VND1.5 million for house rent from July 2018 for buyers of social housing apartments.

The developer said it would strive to hand over the apartments in December this year.

The 1,002-unit project started construction in April 2015 in an area of 10,800 sq.m with a total investment of VND500 billion (US$21.7 million).

On June 19, the developer was fined VND275 million for slow construction of the project. 

Sacombank unveils promotions for corporate customers     

Sacombank has launched a programme called 4.0 Enterprise Bank with preferential fees and promotions worth around VND2 billion (US$85,574) to corporate customers using online banking services.

From now until December 31, when corporate customers conduct transactions at the bank’s counter or website for making transfers, opening deposit accounts, payroll, buying bank guarantees worth at least VND20 million, and others will receive a code to participate in a lucky draw.

Sacombank will organise three draws in November, December and January, with a first prize of a trip to Japan for two, two second prizes of a Surface Pro 5 tablet and three third prizes of an Apple Ipad, besides 30 consolation prizes of suitcases.

The winner of a special prize of a Kia Sedona car will be announced after the final draw.

Besides, new customers will have all fixed fees like account management fee, transaction alert fee and fee for maintaining e-banking services waived until next June.

Ha Noi to stabilise market for Tet festivals     

The capital city of Ha Noi will ensure supply and demand for essential goods is in place ahead of the New Year of 2019 and Tet (Lunar New Year) holidays.

That was the message from Deputy Director of Ha Noi Department of Industry and Trade Tran Thi Phuong Lan who said to reach those targets, the People’s Committee of Ha Noi has been implementing a programme on stabilising the market for essential commodities.

According to the programme, the authorities have advised businesses in the city to increase inventory by between 10 per cent and 15 per cent per month until the Lunar New Year festival. This plan would be based on population, business situation of each company and development of the market in the first nine months this year, Lan said.

Supply of some essential goods leading up to the holidays is estimated to be around 190,600 tonnes of rice; 44,000 tonnes of pork; 14,600 tonnes of chicken; 12,306 tonnes of beef and 11,200 tonnes of seafood products. They include 12,800 tonnes of processed foods; 254,400 tonnes of vegetables; and 200 million litres of wine, beer and soft drinks as well as garment and electrical goods.

An estimated value of goods for the people in Ha Noi is VND28.5 trillion (US$1.21 billion), up by 10 per cent compared to the stockpiling for the Tet holidays this year.

Selling prices of goods participating in the programme will be consolidated by the Department of Finance and published on its website. In the case of price fluctuation, enterprises should inform and adjust the selling prices under instructions from the department.

The People’s Committee has asked the enterprises to use their own capital and take loans from credit institutions to stockpile under the price stabilisation programme.

There are 18 enterprises registered to take part in the programme to bring goods to 10,428 points of sale. Meanwhile, three credit institutions have registered to give loans to the enterprises of the programme with a total capital of up to VND2.7 trillion.

In addition, Ha Noi has organised a conference on cooperation in consuming food and farming products and solutions on sustainable development of the agriculture in the city.

Businesses will take part in activities to promote consumption of agricultural products in Hung Yen, Hai Duong, Bac Giang, Lao Cai and Lang Son provinces. Therefore, the enterprises in Ha Noi have signed 400 memorandums of understanding on cooperation and promotion in the consumption of products, according to Lan.

Ha Noi’s authorities have encouraged the enterprises to open points of sale in towns, industrial zones and export processing zones to meet the needs of the people and labourers.

Thua Thien-Hue rakes in 667.8 million USD from exports

The central province of Thua Thien-Hue earned 667.8 million USD in export turnover in the first nine months of 2018, rising by 11.8 percent year on year and fulfilling about 73 percent of the yearly target.

This figure consisted of almost 290 million USD contributed by domestic companies (up 15.5 percent) and 377.7 million USD by foreign invested firms (up 9 percent).

The province also attracted 25 investment projects with combined capital of more than 40.6 trillion VND (1.75 billion USD), including 18 domestic projects worth 3.2 trillion VND (137.9 million USD) and seven FDI ones worth 1.6 billion USD.

Among them, a solar power project of the Doan Son Thuy Investment JSC has total capital of over 1.36 trillion VND (58.6 million USD). About 1.1 trillion VND (47.4 million USD) was committed by the Vicoland Housing Construction and Development Group to carry out a resort project. Notably, the Singaporean-invested Laguna Lang Co resort project raised its capital from 875 million USD to 2 billion USD.

In January-September, the province’s index of industrial production (IIP) increased by 7.44 percent over the same period last year.

This growth was partly contributed by processing and manufacturing (up 12.31 percent), water supply and waste collection (2.37 percent), and mining (2.3 percent).

The fast expansion in the processing and manufacturing industry is attributable to the fact that many businesses have accelerated production to serve new orders, especially for aquatic products, beer, textiles – garments, building materials, leather products and chemicals.

Some commodities have recorded good growth in their output, including frozen shrimp (38.55 percent), frit glaze (26.13 percent), commercial electricity (15.44 percent), and fibre (9.19 percent).

EVNSPC to expand coverage to more southern rural areas

The Electricity of Vietnam Group’s Southern Power Corporation (EVNSPC) will invest nearly 8 trillion VND (344 million USD) to provide power for rural areas in 12 cities and provinces, as well as island communes in Kien Giang and the Mekong Delta region, by 2020.

The firm will spend more than 85 billion VND (3.65 million USD) to connect over 60,000 rural households with the national power grid.

Currently, the EVNSPC is trying to cover rural areas in the southwest region that are home to a large river and canal system, an obstacle for the construction of power infrastructure.

Over the past few years, the company has implemented a number of power supply projects in remote and island localities in 21 southern cities and provinces.

As of September 2018, the second phase of electricity projects in Vinh Loi, Hoa Binh, Phuong Long and Hong Dan districts of Tra Vinh province, and Dong Hai district of neighbouring Bac Lieu province have been completed with the installment of 917km of middle voltage and 869km of low voltage transmission lines, along with 1,119 transformation stations at a total investment of 1.13 trillion VND (48.59 million USD).

By 2020, when the projects are fully completed, 18,791 households from 254 hamlets of 39 communes in the five districts will have electricity to serve their daily life and production on 76,749ha of farmland.

Many remote communes and districts which are home to ethnic minority groups in the Central Highlands province of Lam Dong and neighbouring Binh Phuoc province, as well as a number of island localities are also being added to EVNSPC’s service coverage plans.

Nghe An strives to boost border trade with Laos

The central province of Nghe An has made various efforts to facilitate trade promotion activities and goods exchange with Laos, thereby boosting border trade between the two sides.

The province has heavily invested in upgrading border trade infrastructure with the focus on building, expanding and renovating roads crossing border gates with Laos and border markets.

Nghe An has six districts bordering Laos that are home to about 30 border markets, including three located near border gates – Thanh Thuy market (Thanh Chuong district), Thong Thu market (Que Phong district), and Nam Can market (Ky Son district).

The province has also created favourable conditions for local enterprises to expand investment and business partnership with their peers from Laos. It is estimated that there are about 90 firms from Nghe An doing business and investing in the neighbouring country, mostly in the fields of mining, hydropower, wood processing, winemaking, steel manufacturing, forestry, travel, agribusiness, education, information and telecommunications.

To further stimulate two-way trade, Deputy Director of the provincial Department of Industry and Trade Vo Thi An has suggested the two sides upgrade Thanh Thuy – Nam On border gate to an international gate and open two auxiliary border gates.

The province has also proposed the two countries’ governments to encourage exporters and importers of both sides making payments via banks in an attempt to reduce cash payment and support the development of commercial banks at border areas.

Nghe An, Vietnam’s largest province by area, has 419 km of border line shared with the Lao provinces of Houaphan, Kieng Khouang and Bolikhamsai. It has five border gates to Laos, including the international gate of Nam Can and the four auxiliary gates of Thanh Thuy, Tam Hop, Cao Veu and Thong Thu, which are seen as hubs for import and export activities in the country’s northwest.

In the first nine months of 2018, the trade turnover between Nghe An and Laos reached nearly 20 million USD, up 25 percent from the same period last year. 

HCM City: nine-month industrial production grows by 7.89 percent

Ho Chi Minh City’s Index of Industrial Production (IIP) enjoyed a year-on-year rise of 7.89 percent in the first nine months of 2018, according to the municipal Statistics Office.

The electronic sector reported the largest growth rate, at 18.28 percent, as it has a stable consumer market and more businesses in the industry have applied advanced technologies.

The increase was also attributed to the efficiency of the city’s Integrated Circuit Industrial Development Programme.

With a growth rate of 9.05 percent, the mechanical sector followed close behind the electronic sector.

For the mechanical sector in particular and the supporting industry in general, the Ho Chi Minh City Centre for Supporting Industries Development (CSID) has worked to hold activities to connect and assist enterprises in stepping up production innovation to increase the quality of products, expand their markets and participate in value chains.

In recent times, the city has also focused on addressing difficulties for businesses by intensifying administrative reform and improving the business and investment environment.

Corporate culture crucial for sustainability in Industry 4.0

During the era of the fourth Industrial Revolution, building corporate culture is mandatory if an enterprise wants to develop sustainably, said Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc.

Loc made the statement at the forum “Corporate Culture in the era of the fourth Industrial Revolution (Industry 4.0)”, co-organised by VCCI, Audit and Advisory firm Deloitte Vietnam and the Hanoi Association for Women Entrepreneurs (HNEW) to help businesses build strong corporate cultures to continue to grow in the new stage of the economy.

The programme attracted nearly 200 participants, including economic experts, business leaders and socio-occupational organisations.

“The development of a business does not rely only on technology investments but also on the enhancement of corporate culture,” Loc said.

“Industry 4.0 has been spreading and creating drastic and dramatic changes all over the world with strong influence all sectors and all economies. With the trend of international integration, Industry 4.0 opens many opportunities but also poses many challenges for enterprises to improve their competitiveness, management and development, technology and especially corporate governance, in which corporate culture is considered as an important factor for building a sustainable enterprise,” he said.

 “Industry 4.0 is the big wheel that pushes businesses to jump higher and further but if firms are not developing themselves in a comprehensive manner, they can also be also crushed under this giant wheel,” he added.

Building a good business culture in the 4.0 era helps businesses harmonise and create good cooperation between people and robots in the workplaces, thus taking advantage of the opportunities offered by the Fourth Industrial Revolution, he said.

Loc added that corporate culture and business ethics in a market economy are key factors that determine success. Vietnamese enterprises need to improve not only their competitiveness in capital, business strategy, technology, productivity, quality, efficiency and design but also reputation, brand and business ethics.

Ha Thu Thanh, Chief Executive Officer of Deloitte Vietnam, said Industry 4.0 would also bring great opportunities for all types of businesses, especially small and medium-sized enterprises (SMEs).

“SMEs can adapt quickly to grasp the opportunities of the Industry 4.0 if they are truly aware that corporate culture and core values determine the competitive strength of a business. It is important for businesses to grow sustainably in the 4.0 era,” Thanh said.

Gian Tu Trung is president of the Institute for Research on Educational Development (IRED) cum founder and chairman of PACE Institute of Leadership and Management, Vietnam’s leading business education institute.

Local enterprises need to know that corporate culture management is a basic method of corporate management and the basis for innovation and development of new technologies, he said. It also enhances the role, responsibility and authority of firm leaders, Trung added.

Besides building corporate culture, local firms should pay attention to business ethics. According to Trung, together with corporate culture, business ethics increases the prestige of enterprises.

He said that in any situation, enterprises must maintain business ethics. If they maintain business ethics in a difficult period, they affirm their brand and prestige.

Leadership key to business success in digital age

Leadership plays a key role in ensuring the successful operation of a business during digital transition, speakers said at the “Industry 3.0 to Industry 4.0” forum held in Ho Chi Minh City on October 3.

Nguyen Duc Thuan, CEO of TBS Group (Thai Binh Shoes), said the Internet of Things (IoT) was changing the business world, creating an important foundation based on databases that can be analysed to help make decisions and periodic adjustments.

“You need to find solutions that will lower production costs and prices in order to be more competitive,” he said. 

Leaders of companies must clearly define their business strategy, especially products and services on which they are focused, Thuan said, adding that productivity must be increased as well.

To choose the right path, businesses, especially small-and medium-sized enterprises SMEs, must identify their challenges before pursuing goals.

Leaders, investors and entrepreneurs should be willing to keep up with new business trends, he said, adding that enterprises need to change their traditional mindset to ensure efficiency.

Women’s roles

More than 70 percent of the delegates at the forum were women, according to the organiser, the HCM City Association for Women Executives and Entrepreneurs (HAWEE).

More than 31 percent of businesses in Vietnam are owned by women, according to a recent MasterCard study. 

When women participate in entrepreneurial pursuits, their companies are often smaller compared to men’s and in fields more prone to economic instability, the study found. 

Women are also more likely to own retail and wholesale businesses as opposed to manufacturing.

Because technology has become more critical for success, it is even more important for women to be involved in this male-dominant area and stay informed.

“We aim to offer practical tips and a can-do spirit as the ky takeaways for our participants,” said the organiser of the forum. 

The exponential growth of technology-enabled solutions has created unprecedented opportunities for an inclusive and sustainable economy across borders, according to HAWEE. 

SMEs and family-run businesses may initially feel vulnerable and wait for the next shoe to drop or for a tech-enabled disruptive model to take over their market. 

But, instead, they should learn how technology can help them build on their fundamental strengths of being agile, cost-effective and efficient, with enviable customer relationships.

More than 400 delegates from SMEs, family-run businesses and start-ups of Vietnam and regional countries attended the event.

The forum also discussed how data series could be analysed to learn new trends that could increase competitive advantages. Other topics included artificial intelligence (AI), robotics, blockchain, and social media and communication.

Tien Giang enjoys strong rise in investment attraction

The Mekong Delta province of Tien Giang lured 22 new projects worth over 2.85 trillion VND (122.55 million USD) in the first nine months of 2018, up 58 percent over the same period last year, according to Vice Chairman of the provincial People’s Committee Tran Thanh Duc.

Duc said that nearly 1.59 trillion VND (67.94 million USD) was added into nine underway projects, raising total investment in the province in nine months to 4.4 trillion VND (189.2 million USD), up 31 percent year on year.

Currently, Tien Giang industrial parks are hosting 98 projects, including 70 foreign-invested one, with total investment of 1.73 million USD and 4.08 trillion VND, along with 79 projects in industrial clusters worth 4.4 trillion VND, according to Duc.

He added that in the first nine months of 2018, Tien Giang also has 545 new enterprises with combined investment of 3.47 trillion VND, a rise of 15 percent in the number of firms and 88.9 percent in capital year on year.

Projects in local industrial parks and clusters have employed more than 104,000 labourers.

Duc attributed the results to the province’s effective efforts to promote investment through improving its investment-business environment, supporting local firms and startups, completing infrastructure system, applying information technology, and reforming administrative procedures.

At the same time, local authorities have spent great time to meet and take dialogue with businesses. Last year, the provincial People’s Committee held three dialogues with local firms, and two others in the first nine months of this year.

In August 2018, Tien Giang successfully held an investment promotion conference which drew 500 delegates. During the event, the province attracted 16 trillion VND in 30 projects in 2018 and 2019, and 50 billion VND of capital for social security programmes.

FDI flow into HCM City surges 50 percent in first nine months

Foreign direct investment (FDI) in Ho Chi Minh City rose sharply in the last nine months, with 5.47 billion USD poured into the southern economic hub over the period, up 50 percent year on year.

The property sector received 20.2 percent of the FDI capital.

The FDI flow mostly came from the Republic of Korea (28.1 percent), Singapore (25.7 percent), Norway (11 percent) and Japan (10 percent), according to the municipal People’s Committee.

Between January and September, new and additional domestic capital registered in HCM City hit nearly 673.49 trillion VND (28.66 billion USD), up 11.2 percent from a year earlier. The figure included more than 372.43 trillion VND (15.85 billion USD) in 30,600 new businesses and 301 trillion VND (12.8 billion USD) added to existing firms.

Real estate attracted the most capital in the period, with 40.7 percent

Regarding the continuous increase of capital poured into the property market, insiders predicted the sector will witness an even stronger capital influx in the remaining months of 2018.

Dong Nai attracts nearly 1.3 billion USD in FDI in nine months

Nearly 1.3 billion USD in foreign direct investment (FDI) landed in the southern province of Dong Nai in the first nine months of 2018, 30 percent surpassing the yearly target, according to the provincial Department of Planning and Investment.

From January to September, Dong Nai licensed 81 new FDI projects worth 605 million USD and allowed 77 others to add extra 694 million USD.

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

Most notable among them are the 60-million-USD project by Singapore-based KCC Vietnam Co., Ltd at Nhon Trach 6 Industrial Park (IP), the 40-million-USD fabric manufacturing project by HI KNIT Co., Ltd from the Republic of Korea at Nhon Trach 6A IP, and the 33-million-USD footwear project by Air Manufacturing Innovation Vietnam from the Netherlands at Giang Dien IP.

Those with additional investments included Bosch Gasoline Systems – HCP factory from the Netherlands at Long Thanh IP, the tyre factory by Taiwan-based Kenda Rubber Industrial Co., Ltd at Giang Dien IP and the pharmaceutical project by OPV Pharmaceutical JSC from Singapore at Bien Hoa II IP which got additional 71 million USD, 56 million USD and 47.7 million USD, respectively.

The province is so far home to 1,833 FDI projects with a total registered investment of 33.1 billion USD. Of them, 1,354 projects worth 28.05 billion USD are operational while 479 others have had their licenses withdrawn.

Most of the projects are run by investors from the Republic of Korea, Taiwan (China) and Japan.

In 2017, Dong Nai attracted over 1.3 billion USD in FDI with the Republic of Korea being the largest foreign investors. In recent years, it has given priority to the projects using hi-tech, skilled labourers and environment-friendly. 

Fruit, veggie exports likely to hit 3.8 billion USD

Exports of fruits and vegetables for the whole year are likely to reach 3.8 billion USD thanks to comprehensive measures taken by the agricultural sector, according to Nguyen Quoc Toan, Acting Director of the Department of Farm Produce Processing and Market Development under the Ministry of Agriculture and Rural Development.

Vietnam is projected to earn 3.1 billion USD in vegetable and fruit exports in the first nine months of the year, a year-on-year surge of 17.1 percent. 

Currently, China is the largest market of Vietnam’s fruits and vegetables, accounting for 74 percent of the total market share. Vietnam shipped nearly 2 billion USD worth of fruits and vegetables to the neighbouring country during January-August, up 11.6 percent from the same period last year.

Strong growth was seen in the exports to Thailand (38 percent), Australia (36 percent), the US (26.3 percent), and the Republic of Korea (21.4 percent).

The department also said that Vietnam splashed out 1.3 billion USD purchasing fruits and vegetables from foreign countries in the nine-month period, increasing 12.7 percent year on year. Of the total, 330 million USD was spent on vegetable imports, and 911 million USD for fruit imports, up 36 percent and 0.8 percent from the same time last year, respectively.

Most of the imports came from Thailand (45 percent) and China (22 percent).

Binh Thuan affirms sea tourism advantages

The south central coastal province of Binh Thuan has focused all resources on bringing into full play its coastal tourism potential and advantages.

The province has a coastline of 192km, with various beautiful landscapes such as Mui Yen, Cau isle, Ke Ga lighthouse, Ganh Son, Gieng Tien, and Hon Cau Marine Protected Area where hundreds of kinds of rare creatures live.

In addition, Binh Thuan boasts Phu Quy island which is known as “a pearl in the middle of the sea” and located about 56 nautical miles off the coast of the province. The island has become an attractive destination to investors.

Meanwhile, Mui Ne beach, with its warm and windy climate, has served as a venue for well-known surfers from the UK, France, Russia, Germany and Australia.

Thanks to efforts to improve the management work and diversify tourism products, the number of tourists to the locality has risen year after year.

Sea sports like windsurfing and kite-surfing and adventure tours have helped lengthen tourists’ stay.

Last year, Binh Thuan served over 5.1 million tourists, earning 10.8 trillion VND (460.7 million USD).

In the first nine months of this year, the province welcomed more than 4 million visitors, up 11 percent from the same period last year.

The number included approximately half a million foreigners, mostly Russian and Chinese, up 13 percent year on year, according to the provincial Department of Culture, Sports and Tourism. The province earned about 9.5 trillion VND (405.1 million USD) in revenue from tourism, up 20 percent.

Ngo Minh Chinh, Director of the provincial Department of Culture, Sports and Tourism, said that as of September, the locality had 390 valid investment projects, including 23 FDI ones, with a total capital of 59 trillion VND (2.5 billion USD).

The province has 468 accommodation facilities, offering more than 14,600 guest rooms, together with more than 300 apartments and villas.

Vice Chairman of the provincial People’s Committee Nguyen Duc Hoa said that tourism has contributed importantly to the province’s economic development. Last year, the sector contributed over 7 percent of the locality’s Gross Regional Domestic Product (GRDP) and created jobs for thousands of locals, particularly those in rural and coastal areas.

The People’s Committee recently approved a plan on measures stepping up tourism development by 2020, in which Binh Thuan strives to attract 7 million tourists, with the number of foreign arrivals growing by 12-14 percent a year, and the number of domestic visitors by 10-12 percent a year.

Tourism is set to contribute 10 percent of the local GRDP, and Mui Ne beach is expected to become a national tourism site, Hoa stated.

In recent years, Binh Thuan has made efforts to make tourism a key local industry. The province has added more tourism services in terms of transportation, shopping and underwater sports to serve the increasing demand of holidaymakers.

It has also ramped up activities to promote local tourist attractions and expand cooperation with other popular destinations in the south central coast and Mekong Delta.

Inspections have been intensified on tour operators and lodging providers to ensure they comply with related regulations while more lifeguards and fire fighters have been employed to ensure safety.

This year, the province aims to receive about 5.75 million visitors, including 670,000 foreign travellers, and generate 12.85 trillion VND (547.1 million USD) in tourism revenue. 

An Giang earns over 600 million USD in exports in nine months

The Mekong Delta province of An Giang’s export revenue in the first nine months of 2018 topped 600 million USD, up 3.29 percent year on year, helping the locality fulfill 71.4 percent of its yearly target.

An Giang estimates that its exports for the whole year will fetch over 840 million USD.

According to Vo Nguyen Nam, Director of the provincial Department of Industry and Trade, the export of many strong products of An Giang such as rice and frozen seafood saw a strong rise in the period.

In the nine-month period, the province exported rice to 38 countries, including 13 Asian, 10 African and 8 European markets, at an average price of 506.47 USD per tonne, up 42 USD year on year.

Meanwhile, the province shipped abroad 88,790 tonnes of frozen seafood for 213.3 million USD, a slight drop in volume but 24 percent rise in value, reaching 79 percent of its target for the whole year.

An Giang frozen seafood have been sold in 80 countries, mostly to Asian markets.

It is forecast that positive signs will continue to be seen in the demand for rice and frozen seafood, especially in the Philippines, Indonesia, the Republic of Korea, African countries and Cambodia.

Along with traditional markets such as the EU and the US, local firms have also focused on developing new markets such as Asian ones.

Besides, due to a rise in the demand for the products in the year-end season, seafood exports of An Giang are expected to increase. For the whole year, An Giang hopes to export 118,000 tonnes of seafood for 270 million USD, a rise of 14 percent in volume and 20 percent in value year on year.-