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Online Friday kicks off with 5,000 promotional products
Online Friday 2018 officially kicked off on December 7, with 5,000 products at promotional prices of 0 VND or with prices reduced by 80 to 90 percent, according to event organiser the Vietnam E-commerce and Digital Economy Agency (IDEA) under the Ministry of Industry and Trade.
Around 3,000 businesses registered to join the programme. Around 120,000 buyers can access the website onlinefriday.vn or the Online Friday app at the same time.
Many big brands participate such as Samsung, Jetstar, Vinamilk, Lazada, Shopee, Tiki, Lotte, Adayroi, The gioi di dong (Mobile World), Yes24, FPTshop and ViettelStore.
Delivery businesses such as VnPost, Nijavan, Lalamove and Snailship would support firms by reducing delivery costs for the event.
Twenty banks will join in cash-back programmes to help customers use card payments.
To ensure product and service quality, the organiser told firms to provide certificates of origin.
The organiser will cooperate with price comparison apps to ensure the products offered during Online Friday are at promotional prices before uploading to the website.
Online Friday was organised for the first time in 2014 with 400,000 visitors, 160,000 orders and 154 billion VND in revenue.
Last year, the programme received 2.4 million visitors, 1.3 million orders and 1.22 trillion VND in revenue.
Veggie exports hit 3.5 billion US in 11 months
China remained the leading market for Vietnam’s fruit and vegetable exports, accounting for 73.8 percent of market share with more than 2.4 billion USD, an increase of 11.3 percent against the same period last year.
A forecast from the Ministry of Agriculture and Rural Development said that in 2018, vegetable and fruit export value will grow about 10 percent year-on-year, much lower than last year’s figure of 42.4 percent.
Many fruits like durian, rambutan and mangosteen will enter harvest period soon, possibly causing declines in the prices of fruits.
During January-October, Vietnam earned some 3.3 billion USD from vegetable and fruit exports, up 15.5 percent from the same time last year. Of the total, 90.3 percent was raw products while processed ones only accounted for 9.7 percent.
EVFTA expected to boost Vietnam-Czech Republic economic ties
Potential for economic cooperation, especially opportunities created by the EU-Vietnam Free Trade Agreement (EVFTA), between Vietnam and the Czech Republic was introduced to Czech offices, organisations and enterprises at a seminar in Prague on December 5.
Jointly held by Vietnam’s Embassy and the Ministry of Industry and Trade and the Czech Republic’s Economic Chamber, the seminar attracted the participation of Vietnamese Ambassador Ho Minh Tuan, leading officials from the Economic Chamber and over 100 representatives from the Czech ministries of Industry and Trade, and Agriculture, the Confederation of Industry, and local businesses.
Speaking at the event, Ambassador Tuan said that Vietnam and the Czech Republic enjoy a time-honoured friendship, which serves as a firm foundation to intensify bilateral cooperation, especially in economy and trade.
The two countries’ economic and trade ties are developing well, reflected through an annual growth rate of over 15 percent in two-way trade in recent years, he stated, adding that the trade turnover is projected to hit 1.2 billion USD this year, doubling that of 2013.
Highlighting the significance of the EVFTA, the diplomat said that the deal will create favourable conditions for enterprises from the European Union (EU), including the Czech Republic, to do long-term business and investment in Vietnam and expand the export of machinery, pharmaceutical products, chemicals and means of transport to the Vietnamese market. At the same time, Vietnam can increase the export of footwear, garment and textiles, farm produce, seafood, wood products and industrial consumer goods to the EU.
Tuan suggested local authorized offices and enterprises take actions to help speed up the signing and ratification of the EVFTA so as to facilitate bilateral economic collaboration.
Bořivoj Minar, Vice President of the Czech Chamber of Commerce, agreed with Tuan’s remarks on the potential for economic cooperation, especially opportunities brought by the EVFTA.
The Czech Republic has the strength in machine manufacturing, mining, food processing and beer production and is willing to collaborate with Vietnam in these fields, he stated, affirming that Czech enterprises can share experience and transfer technology to help Vietnamese partners produce and export their products on their own.
Jaromir Dudak, head of the Asia section of Ministry of Industry and Trade, said the EVFTA will benefit both the Czech Republic and Vietnam, especially in increasing two-way trade and his country’s investment in Vietnam.
The Czech Republic considers Vietnam as its traditional and potential trade partner, and a bridge for the export of Czech products to other markets in the Association of Southeast Asian Nations (ASEAN). Therefore, the country hopes Vietnamese offices will introduce trusted names to its enterprises to set up partnership, he said.
Within the framework of the seminar, the Vietnamese Embassy also organized a photo exhibition featuring Vietnam’s land and people as well as its potential and achievements.
Vietnam, Belarus agree to enhance trade ties
Delegates at the Vietnam-Belarus Business Council and the Vietnam-Belarus Business Forum in HCM City on December 6
Belarus not only wants to export its products to Vietnam, but also transfer technologies and establish joint production plants in Vietnam with local firms, a bilateral business forum heard in Ho Chi Minh City December 6.
Speaking at the first ever meeting of the Vietnam-Belarus Business Council and the Vietnam-Belarus Business Forum, Belarus’ Deputy Minister of Agriculture and Food Igor Brylo said Vietnam is a traditional trade partner for his country in Asia.
The 2016 free trade agreement between the Eurasian Economic Union and Vietnam has boosted investment and trade between the two countries significantly, he said.
Vo Tan Thanh, Director of the Vietnam Chamber of Commerce and Industry’s HCM City office, said last year bilateral trade rose 7 percent to 101 million USD.
The two countries are making efforts to increase it to 500 million USD as agreed by their governments, he said.
In 2016 Belarusian-Vietnamese joint venture “MAZ Asia”, Belarus’s first investment in this country, was licensed in the northern province of Hung Yen.
It has finished construction of a plant and expects to produce 1,500 Maz trucks a year in the first phase, Thanh said.
“Belarus firms also plan to invest in some other projects in manufacturing and dairy and set up a bus assembly plant in Vietnam,” he said.
As the country’s economic hub, HCM City is a promising location for Belarusian businesses, he said.
Denis Nikolaev, trade counsellor at the Belarusian embassy, said his country has set up joint production plants in Vietnam, transferred technology and trained human resources.
“Belarus is willing to shift from pure sales of goods to Vietnam to technology transfer and setting up joint production plants,” Brylo said.
Besides, Vietnam could act as a gateway for Belarus to ASEAN markets while his country could be one of the gateways for Vietnamese goods such as seafood, tea, coffee, and others to penetrate the Eurasian Economic Union, he said.
Andrei Shakhanovich, deputy chairman of the Belarusian Chamber of Commerce and Industry, said 60 leading businesses, which are showcasing their products at the 2018 Vietnam Expo in HCM City and participating the forum, hope to find new partners in HCM City.
“We promise to make more efforts to promote cooperation between businesses of the two countries.”
Nguyen Quang Hung, chairman of the Vietnam-Belarus Council, expressed the hope that many Vietnamese and Belarusian firms would explore trade, investment, science and technology, and tourism opportunities.
The council would be a good channel for dialogue between businesses and government agencies of the two sides, he said.
At the same time the council would help find solutions to difficulties faced by enterprises doing business in the other country, he said.
The event was organised by the VCCI and the Belarusian Chamber of Commerce and Industry.
Agriculture cooperation prospects for Vietnam, Argentina
The People’s Committee of the Mekong Delta city of Can Tho held a working session with Argentine Ambassador to Vietnam Juan Carlos Valle Raleigh on December 6 to discuss cooperation prospects between the city and Argentine partners.
The Ambassador reiterated the Argentine government’s open door policy and called on foreign businesses to invest in the country.
He said Vietnam is not only a priority market in Argentina’s export diversification and expansion strategy but also an important trading partner in Asia and the third-biggest importer of Argentine products in the region.
The diplomat noted that Argentina has strengths in agriculture while Can Tho is a driving economic force of the entire Mekong Delta with many agricultural and aquatic products with high export value, a fact attracting a large number of businesses.
Therefore, Argentine investors hope to build long-term strategic ties with the city, he said.
However, per the initial survey of Argentina’s agricultural experts, the use of science-technology in Can Tho remains ineffective due to lack of investment in logistics service facilities for harvesting and preservation.
He suggested the city work with the National Agricultural Technology Institute (INTA) of Argentina – a prestigious research institute in South America which has made significant contributions to agriculture in Argentina.
The ambassador said the cooperation could help the city find measures to remove bottlenecks to developing agriculture in the Mekong Delta, focusing on food security, climate change, improving soil quality, enhancing market connectivity, increasing value for forestry products and aquaculture.
The INTA could help Can Tho enhance the use of science-technology in developing high-tech agriculture as well as attracting the private economic sector to help poor people in both rural and urban areas enjoy benefits from effective agricultural economic models and advanced cultivation methods.
Through cooperation plans, Can Tho can work with the INTA to seek new ways to solve crucial issues in agriculture development such as increasing the productivity and quality of farm produce, protecting land and water resources and ensuring food safety and hygiene.
Raleigh proposed Can Tho coordinate with the Argentine Embassy in Vietnam to implement programmes to connect agricultural businesses with partners from Argentina and other countries in South America.
This will create an excellent opportunity for Can Tho firms to access cutting edge technologies to increase competitiveness for their products while opening up new international cooperation opportunities.
The Ambassador asked Can Tho to build “clean” investment attraction policies, which encourage businesses and investors to operate towards sustainable development, promote social responsibility and create environmentally-friendly products.
He also suggested the city improve infrastructure and human resources and capacity to connect with businesses in addition to launching tours to introduce the city to international firms.
He took this occasion to invite Can Tho to introduce the delta’s farm produce at AgroActiva, the biggest agriculture fair of Argentina, which is held annually in June in Santa Fe province - about 400km from the capital Buenos Aires.
Chairman of the municipal People’s Committee Vo Thang Thong agreed on the proposals of the ambassador and said the city will do its utmost to improve the business environment, reform human resources attraction mechanisms and create the best conditions for Argentine partners to invest in the city.
He hoped the Argentine Embassy would help Can Tho access Argentine investors and projects.
Can Tho is expected to become a gateway for Argentina to export goods to the Mekong Delta while Argentina can help connect the Mekong Delta with the Latin American market, he said.
Local companies join industrial supplier group
Association with the aim of sharing international expertise and networking with Vietnamese companies.
The long-term partnership agreement, which was signed in early December, will share technical, management and operational procedures among Doosan Vina and Vietnamese industrial suppliers working
in the fields of electrical, mechanical, steel, construction and engineering.
The agreement will help promote incentives for the suppliers to maximise their investments and help grow and stabilise their businesses by becoming more efficient and competitive.
As planned, the association’s members will be offered opportunities to expand their businesses through introductions to other business-to-business (B2B) firms that work with Doosan Vina. The association
will promote cooperation on mutually beneficial Corporate Social Responsibility (CSR) programmes.
Kang Sanghyung, Director of the Procurement Division at Doosan Vina, said reputable local suppliers have helped Doosan Vina create many high quality Made-in-Vietnam products that are available in 33
countries around the world.
He said he hoped the establishment of the association will be a milestone that marks the beginning of a long-term relationship that will help maximize profits, promote economic growth and promote
Vietnamese products in both the domestic and international market.
Last month, Doosan Vina and Samsung Engineering Company (SECL) also signed a framework agreement for a major project in the Middle East.
In 2017, Doosan Vina signed a Memorandum of Understanding with five partners from the RoK to help them enter the Vietnamese market.
Doosan Vina, situated in the Dung Quat Economic Zone in Binh Son district of the central province of Quang Ngai, is a high-tech industrial complex with nearly 2,500 employees, supplying mega infrastructure
products for thermal power plants and desalination plants, and cranes and chemical processing equipment for export.
It manufactures boilers for thermal power plants, desalination plants for sea water, cranes and structural steel for buildings and infrastructure developments.
To date, the company has exported products with a total value of 2.4 billion USD.
Barriers remain in Vietnam’s tourism sector
Vietnam’s tourism sector has grown rapidly in recent years, with the number of international tourists hitting a record. However, Vietnam’s tourism sector still has to overcome some barriers to become an economic spearhead.
In the 11 months of this year, Vietnam welcomed more than 14 million foreign holidaymakers, up 21% from the same period last year.
Boasting a long coast, Vietnam has many stunning beaches with diverse natural conditions and foreigners often speak highly of Vietnam’s coast. However, due to insufficient infrastructure, Vietnam hasn’t attracted high-paying travellers.
The tourism sector is projected to expand around 20% to 30% each year and by 2020, the tourism sector will require more than 2 million high quality workers.
Removing barriers in developing tourism is important, as it plays an important role in realising the tourism sector’s potential.
Exports to EU open opportunity to expand markets for VN firms
Checking orange’s origin by using QR Code in the central province of Nghe An. Agricultural products’ quality has been in top of EU market’s requirement.
The EU is a demanding market with strict standards for imported products, so meeting the bloc’s requirements would be an opportunity for local exporters to expand their market.
Pham Van Cuong, general director of G.O.C Food Processing Export Joint Stock Company told the 2018 Viet Nam – EU Trade Forum, themed ‘Agro-trading: Partnership for sustainable development’ held in Ha Noi on Thursday this would be an opportunity for Vietnamese firms to improve their management experience.
With three factories specialising in producing and supplying agricultural products for export, he said exporters to the EU also have to pay attention to policies relating to environmental protection, energy saving and labour standards.
He said his company has not set a high profit target when exporting to the EU but meeting the market’s requirements would help them export elsewhere.
Meanwhile, specialist Hadyn Craig from the UK Centre for Scientific and Technical Creativity noted that consumers’ health in the EU has been considered as one of important factors for development. It was the reason that controlling quality has always been a requirement for products, especially imported agricultural ones.
Nguyen Thi Huyen, director of VINA SAMEX JSC said the trend in the EU was to use natural products.
“Therefore, Vietnamese enterprises should not only strictly control food safety and quality of products, but also promote organic and clean products,” she said, adding they have trained farmers not to use fertiliser and chemicals.
Deputy Minister of Industry and Trade, Cao Quoc Hung said the EU is a prosperous economic region with GDP accounting for 23 per cent of the world’s nominal GDP and annual average per capita income up to US$40,890.
He said Viet Nam has advantages in production and exports of tropical agricultural products to the EU and will have more when the EU-Viet Nam Free Trade Agreement (EVFTA) takes effect. However, this market has strict regulations on product quality and food hygiene and safety.
However, the Government, businesses and consultants should join hands to take advantages of EVFTA, he said.
French agricultural counselor in Viet Nam, Alexandre Bouchot, said it is crucial to decentralise the management of food policy, promote local initiatives, enhance the attraction of enterprises’ investment in agriculture and focus on training to meet requirements.
Many trade experts said that the first barrier for exports of Viet Nam’s agricultural products to the EU was a lack of links between farmers and enterprises.
Tran Van Cong, deputy director of the Agro Processing and Market Development Authority under the Ministry of Agriculture and Rural Development, said in addition to preferential land prices and interest rate, the Government has also encouraged businesses investing in high-tech and clean agriculture.
He said investing in high-tech agriculture would not only improve product quality but also help firms join value chains, meet importers’ requirements and increase competitiveness.
“Viet Nam welcomes and is ready to apply preferential mechanisms to encourage investment and co-operation from EU firms in agricultural processing,” he added.
According to the Ministry of Industry and Trade, the two-way trade between Viet Nam and EU reached $50 billion in 2017, with exports of agricultural products from Viet Nam to the EU exceeding $5 billion.
Last year, the country’s total export value of agricultural products posted a 4.5 per cent year-on-year rise to VND768.2 trillion ($33.4 billion).
The EU was second among export markets of Viet Nam, with 18 per cent of Viet Nam’s total agricultural products shipped to the market.
In the first 10 months of the year, the country’s export value of agricultural products reached $4.3 billion, increasing 10 per cent from the same period last year and could surpass the whole year’s set target.
The forum offered an opportunity for economic experts to share difficulties and challenges for Viet Nam – EU trade, helping enterprises to remove barriers and obstacles in production and business as well as providing updates and forecasts on the EU’s policies and regulations for imported agriculture products.
Viet Nam and Belarus enhance economic, trade ties
Belarus not only wants to export its products to Viet Nam, but also transfer technologies and establish joint production plants in Viet Nam with local firms, a bilateral business forum heard in HCM City on Thursday.
Speaking at the first ever meeting of the Viet Nam-Belarus Business Council and the Viet Nam-Belarus Business Forum, Belarus’ Deputy Minister of Agriculture and Food Igor Brylo said Viet Nam is a traditional trade partner for his country in Asia.
The 2016 free trade agreement between the Eurasian Economic Union and Viet Nam has boosted investment and trade between the two countries significantly, he said.
Vo Tan Thanh, director of the Viet Nam Chamber of Commerce and Industry’s HCM City office, said last year bilateral trade rose 7 per cent to US$101 million.
The two countries are making efforts to increase it to $500 million as agreed by their governments, he said.
In 2016 Belarusian-Vietnamese joint venture “MAZ Asia”, Belarus’s first investment in this country, was licensed in Hung Yen Province.
It has finished construction of a plant and expects to produce 1,500 Maz trucks a year in the first phase, Thanh said.
“Belarus firms also plan to invest in some other projects in manufacturing and dairy and set up a bus assembly plant in Viet Nam,” he said.
As the country’s economic hub, HCM City is a promising location for Belarusian businesses, he said.
Denis Nikolaev, trade counselor at the Belarussian embassy, said his country has set up joint production plants in Viet Nam, transferred technology and trained human resources.
“Belarus is willing to shift from pure sales of goods to Viet Nam to technology transfer and setting up joint production plants,” Brylo said.
Besides, Viet Nam could act as a gateway for Belarus to ASEAN markets while his country could be one of the gateways for Vietnamese goods such as seafood, tea, coffee, and others to penetrate the Eurasian Economic Union, he said.
Andrei Shakhanovich, deputy chairman of the Belarusian Chamber of Commerce and Industry, said 60 leading businesses, which are showcasing their products at the 2018 Viet Nam Expo in HCM City and participating the forum, hope to find new partners in HCM City.
“We promise to make more efforts to promote co-operation between businesses of the two countries.”
Nguyen Quang Hung, chairman of the Viet Nam-Belarus Council, expressed the hope that many Vietnamese and Belarusian firms would explore trade, investment, science and technology, and tourism opportunities.
The council would be a good channel for dialogue between businesses and government agencies of the two sides, he said.
At the same time the council would help find solutions to difficulties faced by enterprises doing business in the other country, he said.
The event was organised by the VCCI and the Belarusian Chamber of Commerce and Industry.
F88 aims to have 300 more pawnshops by 2021F88 Investment JSC, the owner of a pawnshop chain in Vietnam, has signed an agreement to raise growth capital from Granite Oak, a European investment firm, aiming to expand its business scale by launching 300 more pawnshops nationwide by 2021.
The value of the deal remains unknown. Meanwhile, F88’s board of directors will include a representative of Granite Oak.
Phung Anh Tuan, board chairman and general director of F88, noted that the company will use the new investment to serve its expansion in HCMC as well as to increase its loan book at its 45 existing shops. In addition, among the 300 pawnshops to be launched, 200 will be located in the city.
The local firm currently provides loans based on collateral, such as autos, motorbikes, mobile phones and laptops, said Tuan, adding that it has a list of 10,000 collateral codes that borrowers can look up if they want to take out loans.
Customers usually take out loans of an average VND10 million for short periods. Borrowers receive money within 15 minutes, with monthly interest rates of at least 1.1%.
On the same day as the announcement, the pawnbroker also struck deals with online payment service providers Payoo and MoMo. As such, customers can make payments for daily services and transfer or withdraw money through the Payoo system or MoMo e-wallet at F88 pawnshops.
Since its foundation in 2013, F88 has been developing a pawnshop chain across the country.
Mekong Enterprise Fund III (MEF III), a unit of Mekong Capital, had invested in F88 Company early last year. Nearly two years later, F88 owns 42 pawnshops in six northern provinces and cities, in addition to the three recently launched outlets in HCMC, which have received positive feedback from customers.
This resulted in a total amount of capital injected to the economy in the January – November period of VND3,400 trillion (US$146.92 billion).
In the first 11 months of 2018, Vietnam has seen a total of 121,248 enterprises registered for new establishment, up 4.5% year-on-year, with registered capital of a combined VND1,200 trillion (US$51.26 billion), according to the Ministry of Planning and Investment (MPI).
This resulted in a total amount of capital injected to the economy in the January – November period of VND3,400 trillion (US$146.92 billion), of which VND1,200 trillion (US$51.26 billion) was from newly founded enterprises and an addition of VND2,100 trillion (US$90.75 billion) from operational enterprises.
During the period, 31,869 enterprises resumed their operations, up 30.9% year-on-year.
Meanwhile, the number of enterprises temporarily ceasing operation in the period was 57,000, an increase of 64% against the comparable period last year, 25,977 enterprises registered for time-limited temporary cessation of business, rising by 24.8%, and 14,861 enterprises completed the dissolution procedure, increasing by 37.4%. Overall, the number totaled 97,838 in the first 11 months of 2018, up 6.7% against the 10-month period.
In November, most of newly established enterprises are in the fields of real estate business with 6,423 enterprises, up 41.7% year-on-year; financing, banking and insurance 1,716 enterprises, up 23.7%; healthcare and social development 20.8%.
Enterprises operating in field of real estate have the largest registered capital of VND375.06 trillion (US$16.20 billion), accounting for 30.4% of total registered amount; followed by wholesale, retail sale, automobile repairing with VND193.60 trillion (US$8.36 billion) or 15.7%; construction VND158.91 trillion (US$6.86 billion); manufacturing and processing VND140.41 trillion (US$6.06 billion).
Reasons behind growing number of enterprises ceasing operation
According to the MPI, the growing number of enterprises ceasing operation is due to their own existing shortcomings of small and medium enterprises, including inefficient corporate governance, lack of innovation, and low productivity.
Currently, Vietnam’s labor productivity is lower than most of countries in the region, equivalent to 7% of Singapore, 17.6% Malaysia, 36.5% Thailand, 42.3% Indonesia, 56.7% the Philippines, and 87.4% Laos.
Vietnam’s enterprises scored 53.7 out of 100 points in terms of dynamism in the 2018 Global Competitiveness Report of the World Economic Forum, ranking 101th ouf of 140 economies, 33.4 out of 100
points in innovation capabilities, ranking 82nd ouf of 140.
Tran Thi Hong Minh, director of the Department for Business Registration Management under the MPI, said there has always been a number of enterprises ceasing operation in an economy, due to low competitiveness.
However, part of the issue lies on inefficient legal framework and business conditions, in turn restricting the development of enterprises, Minh added.
Micro SME and individual households fall short of policies to support them
During the process of global economic integration and growing protectionism, the fierce competition and lack of support from the legal system have put pressure on Vietnamese enterprises in general, and micro enterprises and individual households in particular.
Despite being the growth engine of the economy, micro-sized enterprises and individual households in Vietnam are struggling to grow due to the lack of support from government policies, according to Hoang Tran Hau, director of Institute of Financial Training under the Ministry of Finance.
As of the first quarter of 2018, Vietnam had 26,785 newly established enterprises with registered capital of VND278.48 trillion (US$12.04 billion), 90% of which were micro and small enterprises with capital of under VND10 billion (US$432,380), Hau said at a conference on November 27.
In addition to micro enterprises, there were around 5.5 million individual households, creating 10 million jobs.
During the process of global economic integration and growing protectionism, the fierce competition and lack of support from the legal system have put pressure on Vietnamese enterprises in general, and micro enterprises and individual households in particular, Hau continue.
According to Hau, tax incentives and capital access are the two main barriers for those businesses to grow.
Echoing Hau’s view, economist Vo Tri Thanh said it is vital for them to access resources for development. Reasons behind this issue are their incapability accessing market, information and government agencies, and lack of collateral assets, technologies and low corporate governance.
Thanh said the main source of capital for individual households are from profits if available, while they have to get loans from friends and family.
Moreover, individual households have not registered as businesses or owned no legal person, causing unclarity in dealing with its debts. In this regard, their assets, including non-related business ones, are subject to debt payment, which is different compared to enterprises.
At the meeting, experts requested more incentives provided to micro enterprises, while encouraging individual households to register as enterprise.
Centre founded to support cooperative development
A support centre for cooperative development was opened in Hanoi on December 6, aiming to help Vietnamese cooperatives get more involved in agricultural value chains.
The centre was set up by the Vietnam Cooperative Union for Agricultural Consumption (UCA).
Its director Nguyen The Phuong said the centre will help cooperatives join sustainable value chains.
UCA Chairman Pham Anh Tuan said Vietnam has been strongly integrating into the global economy, which will bring about both opportunities and challenges, especially in agriculture.
Notably, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will take effect in January 2019. Vietnam will have several years to prepare to export farm produce to major
markets and brace for challenges posed by the competition of products from other CPTPP members, including Australia, New Zealand and Japan.
Vietnamese goods have to meet the other countries’ standards while being safe and cheaper than agricultural products of other signatories, or they will lose in the domestic market.
To do that, it is necessary to boost land accumulation, mass production and high-tech application to improve quality and labour productivity and reduce production costs, Tuan said.
He noted the UCA, founded more than two years ago, still has to do much more to contribute to Vietnam’s agriculture.
According to the Vietnam Cooperative Alliance, cooperative groups and cooperatives make up nearly 4.8 percent of the country’s GDP. There were 21,026 active cooperatives as of June 30 this year, up 934
against the previous year. More than half of these were in agriculture or agricultural service.
Vietnam wants at least 15,000 agricultural cooperatives and cooperative unions operating effectively by 2020.
SeABank to issue shares for capital hike
The Southeast Asia Joint Stock Commercial Bank (SeABank) will issue more than 222 million shares over the course of this month and 2019 in a move to raise its charter capital by more than VND2.22 trillion (US$94.87 million) to nearly VND7.69 trillion.
SeABank will issue 199 million shares to existing shareholders at a price of VND10,000 per share. Another 23 million shares will be issued to the bank’s staff, but the price has not been revealed yet. The deadline for shareholders to decide to buy more shares is December 8.
SeABank said the proceeds will be used to finance the bank’s business activities. VND1 trillion will be used for lending, VND850 billion will be invested in bonds from the Government and other credit institutions and VND350 billion will be invested in fixed assets.
After issuing the new shares, the bank will list its shares on the stock markets within a year.
Governor of the State Bank of Viet Nam Le Minh Hung has approved SeABank’s proposal to increase its charter capital from VND5.46 trillion to VND7.69 trillion.
SeABank’s shares are traded on the over-the-counter (OTC) market at VND12,000 apiece, some 20 per cent higher than the par value.
In the first three quarters of this year, SeABank’s profit was more than VND400 billion, up nearly 83 per cent against the same period last year and equivalent to 48 per cent of its VND829 billion full-year target.
As of September 30, the bank’s total assets reached VND126.47 trillion, inching up 1 per cent from the end of last year. The bank’s outstanding loans increased by 9.8 per cent to VND77.46 trillion while its mobilised capital rose by 15 per cent to nearly VND92.12 trillion.
SeABank to issue shares for capital hike
The Southeast Asia Joint Stock Commercial Bank (SeABank) will issue more than 222 million shares over the course of this month and 2019 in a move to raise its charter capital by more than VND2.22 trillion (US$94.87 million) to nearly VND7.69 trillion.
SeABank will issue 199 million shares to existing shareholders at a price of VND10,000 per share. Another 23 million shares will be issued to the bank’s staff, but the price has not been revealed yet. The deadline for shareholders to decide to buy more shares is December 8.
SeABank said the proceeds will be used to finance the bank’s business activities. VND1 trillion will be used for lending, VND850 billion will be invested in bonds from the Government and other credit institutions and VND350 billion will be invested in fixed assets.
After issuing the new shares, the bank will list its shares on the stock markets within a year.
Governor of the State Bank of Viet Nam Le Minh Hung has approved SeABank’s proposal to increase its charter capital from VND5.46 trillion to VND7.69 trillion.
SeABank’s shares are traded on the over-the-counter (OTC) market at VND12,000 apiece, some 20 per cent higher than the par value.
In the first three quarters of this year, SeABank’s profit was more than VND400 billion, up nearly 83 per cent against the same period last year and equivalent to 48 per cent of its VND829 billion full-year target.
As of September 30, the bank’s total assets reached VND126.47 trillion, inching up 1 per cent from the end of last year. The bank’s outstanding loans increased by 9.8 per cent to VND77.46 trillion while its mobilised capital rose by 15 per cent to nearly VND92.12 trillion.
State Treasury raises over VND5.2 trillion via G-bonds
The State Treasury of Viet Nam mobilised VND5.2 trillion (US$222.22 million) through Government bond auctions on the Ha Noi Stock Exchange (HNX) on Wednesday.
Some VND4.5 trillion worth of G-bonds were offered, including five-year bonds valued at VND500 billion and 10-year and 15-year bonds each valued at VND2 trillion.
The State Treasury raised VND2 trillion worth of 10-year bonds with an average yield rate of 5.1 per cent per year, the same rate offered in the previous auction on November 28.
Bonds with a 15-year term worth VND2 trillion were sold at an annual interest of 5.3 per cent, the same rate offered in the previous auction.
The five-year bonds did not see a winning volume.
A total of VND1.2 trillion was raised in the sub-session sales for the 10-year and 15-year bonds.
To date this year, the State Treasury has mobilised nearly VND142.55 trillion through Government bonds issued on the HNX.
Seminar looks into cruise tourism development
An international seminar to seek ways to develop cruise tourism was held in the northern coastal province of Quang Ninh on December 7.
Addressing the event, Vice Chairman of Vietnam National Administration of Tourism (VNAT) Ngo Hoai Chung said cruise tourism has been the fastest growing sector of the travel industry for the past few years globally. Often chosen by wealthy people, cruise tourism can make a significant economic impact for the locality.
Sea and island tourism, which includes cruise tourism, is considered one of the priorities in the tourism development strategy of Vietnam, said Chung.
Vietnam has numerous advantages to become an attractive cruise tourism destination with its location in the centre of Southeast Asia, some 3,200 km of coast, more than 3,000 beautiful islands and diverse and unique culture, said Chung.
The growth rate of cruise tourist numbers to Vietnam is relatively low compared to the total number of tourists. In the first 11 months of 2018, Vietnam welcomed more than 400,000 cruise tourists, accounting for only 2 to 3 percent of total international tourists.
Vietnam still faces challenges including a poor seaport system, substandard cruise terminal facilities, bad infrastructure, unattractive tourism products and a lack of long-term action plans to attract cruise tourists, according to Chung.
He suggested Vietnam should invest more in infrastructure, cruise terminal facilities as well as shore itineraries and develop unique tourism products to tap its cruise tourism potential.
To make Vietnam a viable cruise destination, the country should improve its itineraries, cruise facilities and shore excursions, said Ahmad Kamal Bin Abdollah, manager of Cruise Port Development of the NV Terminals in Malaysia.
The various destinations within Vietnam have a solid mix of excursion offerings. The challenge remains in developing new facilities at these destinations and where such facilities are not optimal, improving the overall experience such that the inconvenience is minor and the rewards are great, he said.
In 2017, Vietnam welcomed 407 cruise ships compared to 466 ships in the previous year. Ho Chi Minh City and Da Nang saw the highest number of ships visiting the country.
This year, Vietnam expects to welcome 500 ships, up 21percent from the previous year.
Ben Tre eyes 20 percent growth in export revenue
The Mekong Delta province of Ben Tre hopes to earn 1.16 billion USD in export turnover in 2019, a year-on-year surge of 20.67 percent, the provincial People’s Committee has said.
The province plans to enhance trade promotion, popularise local products, stabilise traditional markets and look for new ones to achieve the goal.
Local authorities will carry out measures on local firms and remove bottlenecks for them in a timely manner. The businesses will receive assistance to comply with import-export management regulations and improve capacity to integrate into the global economy.
According to Chairman of the provincial People’s Committee Cao Van Trong, thanks to efforts to enhance productivity, develop markets and bolster exports, the province will have shipped 961.3 million USD worth of products overseas by the end of 2018, up 14.4 percent from the previous year, and surpassing 13 percent of the yearly plan.
Exports of industrial and handicraft products are reckoned to rise 12.6 percent year on year and account for 88.1 percent of the export revenue.
Director of the provincial Department of Industry and Trade Le Van Khe said increases in volume have been seen in most exports such as desiccated coconut (84.61 percent), frozen seafood (up 4.21 percent), activated carbon (17.88 percent) and garment and textile (34.71 percent), among others.
Forum urges companies to govern for sustainability
Governing for sustainability, a hot issue in Vietnamese business activities amid the process of international economic integration, was discussed at a forum in Ho Chi Minh City last week.
The event was held by the State Securities Commission of Vietnam (SSC), the Ho Chi Minh Stock Exchange, the Hanoi Stock Exchange, and the International Finance Corporation (IFC).
SSC Vice Chairman Pham Hong Son said that Vietnam aspires to develop fast and sustainably towards becoming an upper-middle-income country. To realise this goal, many organisations and businesses have paid attention to governing for sustainability, while still balancing environmental and social aspects.
Amar Gill, Managing Director and co-head of Investment Stewardship at APAC BlackRock, said governing for sustainability is a long-term issue and such, directors’ boards need to be aware of this issue to make long-term management strategies.
Meanwhile, Dominic Scriven, Executive Chairman of Dragon Capital Group Ltd., said that governing for sustainability benefits not only enterprises, but also other relevant parties and consumers. In many countries, there are companies unaware of the commitments needed for sustainability principles, and when potential risks become a reality, they will have a great toll on their prestige and time, he said.
Scriven added that governing for sustainability requires not only verbal commitments but also adequate awareness and action plans. Directors’ boards play a crucial role in governing for sustainability and they require the participation of independent and gender-balanced members, which is also a factor of sustainable development, he added.
Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia, and Laos, said capital markets have paid increasing attention to the ways boards of directors deal with issues of environmental and social impacts.
The environment-, society-, and governance-related practices have become an important factor in their investment decisions, he said, noting that with a clear connection between the proper governance of environmental and social impacts and long-term business efficiency, the companies committed to good sustainability practices will have more of an advantage in attracting attention from investors.
According to the ASEAN Corporate Governance Scorecard 2017-2018, the average corporate governance in Vietnam scores 41.3 points, compared to the ASEAN average of 71.01 points, out of the maximum 130 points. The country’s average score has increased by some 9 percent annually since 2012.
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