Fuel prices rise

Petrol and oil prices on the local market increased this afternoon, September 21, according to a statement jointly issued by the Ministry of Industry and Trade and the Ministry of Finance.

Under the statement, fuel traders are allowed to raise the price of RON95-III and E5 RON92 petrol by VND290 per litre to VND21,770 and by VND320 per litre to VND20,231.  

Price of diesel oil 0.05S will be increased by VND57 per litre to VND18,126. Meanwhile, the price of kerosene will be raised by VND124 per litre to VND16,683.

This is the second petroleum price hike in September after the prices were kept unchanged for two previous months.

Earlier on September 6, the petroleum prices were also slightly raised.

At present, retailers are allowed to tap VND1,563 from the price stabilisation fund for each litre of E5 RON92 sold and VND960 for each litre of RON95 petrol. For diesel oil and kerosene, retailers get VND400 per litre and VND300 per litre, respectively.

Explaining the rise in retail fuel prices and the excessive use of the fund, the competent agencies noted that the prices of imported fuels recently had skyrocketed, alongside fluctuations in the exchange rate between the US dollar and the Vietnamese dong.

Symposium discusses prospect of eco-industrial parks in Vietnam

Pham Van Moi, head of the Hai Phong Economic Zone Authority, speaks at the symposium on September 19 

A symposium held in northern Hai Phong city on September 19 looked into the global trend of eco-industrial parks (EIPs) and their prospects in Vietnam.

According to the Institute of Strategy and Policy on Natural Resources and Environment (ISPONRE), EIPs have been opened in many countries which do not see industrial parks as separate entities but inter-connected systems. In these parks, waste in industrial production is gradually eliminated towards zero emissions.

The industrial waste management through the EIP model is considered an effective approach that generates economic and environmental benefits and is feasible in Vietnam. However, this necessitates synchronous policies from planning to infrastructure development and financial support to expand EIPs, the ISPONRE said.

This model features industrial symbiosis, which means businesses cooperate with others in the same industrial park or other parks to optimise input and output factors like materials, waste, energy, waste and scrap during their production and business process. Through this cooperation, they form a network for exchanging production serving factors, sharing infrastructure and services and improving operations.

In Vietnam, a study has been conducted to consider applying the EIP model in Bien Hoa 1 and 2 industrial parks in southern Dong Nai province. The Ministry of Planning and Investment and the UN Industrial Development Organisation have also carried out an EIP initiative towards a sustainable industrial park model, the institute said.

Pham Van Moi, head of the Hai Phong Economic Zone Authority, said local industrial parks and economic zones have attracted projects from major businesses of the Republic of Korea, Japan, the US and Hong Kong (China). They have applied modern equipment and technologies that are environmentally friendly, save energy and manufacture products with high-added value.

He added industrial parks in the city have complied with regulations on environmental protection and waste treatment, ensuring industrial waste meets Vietnamese standards before being released into the environment.

To turn Hai Phong into a green civilized and modern city, it is working to build new EIPs and transform existing parks like the Dinh Vu, Nam Dinh Vu, or the one of the Hai Phong International Gateway Port into EIPs, the official noted.

Vietnam’s export to Thailand up 21 percent

Vietnam earned more than 3.7 billion USD from exports to Thailand as of August 2018, up 21 percent year on year, higher than the country’s average of 16.7 percent, according to the General Statistics Office. 

Of the figure, mobile phones and spare parts brought home the most with 996 million USD. Other goods earning 100 million USD and above included crude oil, electronics and accessories, and transportation vehicles. 

During the period, Vietnam spent over 7.5 billion USD on imports from Thailand, up 14.3 percent year-on-year, resulting in a deficit of over 3.8 billion USD.

In the first eight months of this year, Vietnam’s total import and export turnover hit 308.07 billion USD, up 13 percent over the same period of 2017. Of which, export turnover was 155.4 billion USD, up 14.5 percent, and import was 152.7 billion USD, a rise of 11.6 percent.

Forum spotlights startup support in Asia Pacific

The first forum on doing business in the Francophone community in the Asia Pacific began in Hanoi on September 20, discussing ways to assist startups in the region.

The two-day event, co-organised by the Vietnam Chamber of Commerce and Industry (VCCI) and the International Organisation of the Francophonie (OIF), is scheduled to run through various sessions on female startups, business development in a Francophone space, and supporting micro, small- and medium-sized enterprises, among others.

In his opening speech, VCCI Vice President Hoang Quang Phong said that with the support of the OIF, the VCCI has carried out several activities to assist Vietnamese enterprises in trade and investment cooperation with Francophone firms in the Asia Pacific, particularly French-speaking African countries. 

He said the forum is an OIF initiative as part of the organisation’s programme on boosting employment via female and youth startups.

The forum offers an opportunity for delegates to exchange experience and put forth measures to step up trade and investment within the Francophone community, Phong noted, adding that youths and women play a key role in the development of a nation.

OIF Director for the Asia Pacific Eric Normand Thibeault said the forum will help enterprises meet up and set up long-term partnerships via the establishment of a startup network in the region.

Discussing the status of women in business, Nguyen Thi Tuyet Minh, Chairwoman of the Vietnam Women Entrepreneurs Council (VWEC), said that creating the ground for a successful startup is not easy, particularly if it is led by a female entrepreneur as there are simply not as many opportunities available for women in the field.

It requires concerted efforts from individuals, organisations, and governments to build startup ecosystems, she stated.

The Francophone community has 84 members and observers from five continents, with a combined population of about 900 million, including 220 million French-speaking people. The community accounts for 13 percent of the world’s GDP.

Vietnam was among the founding countries of the OIF in 1970. Over the years, the OIF has maintained active cooperation with Vietnam, including the exchange of training and technical expertise in a number of fields.

An Giang to hold investment promotion conference

The Mekong Delta province of An Giang will organise an investment promotion conference on September 29 which is expected to draw the participation of Prime Minister Nguyen Xuan Phuc, heard a press briefing on September 20.

At the conference, the province will grant approvals of investment plans to 23 projects in five areas - agriculture, trade-service-tourism, industry, construction-urban building, and healthcare. The projects have a combined capital of over 27 trillion VND (1.16 billion USD).

The provincial authorities will hand over investment commitments to seven investors who plan to invest over 101 trillion VND (4.3 billion USD) in the province.

An Giang will also honour a number of entrepreneurs for their outstanding contributions to the province’s socio-economic development.

Themed “An Giang-Connecting Opportunities, Cooperating Successfully”, the investment promotion conference is a significant event for the province.

According to Vice Chairman of the provincial People’s Committee Le Van Nung, the event is a chance for the province to introduce its socio-economic development achievements, strengths, and potential. Through the conference, the province hopes to mobilise resources from domestic and foreign investors for rapid and sustainable growth, he said.

Nung added that the conference is a venue for provincial leaders to directly meet enterprises and investors who plan to invest in An Giang.

Currently, An Giang is calling for investment in eight agricultural projects, including one to build a solar power plant in combination with high-tech agriculture development in An Cu commune, Tinh Bien district, which needs 6 trillion VND, and a 2 trillion VND project to form a village of aquatic farming and eco-tourism at Cu Lao Gieng.

In tourism, An Giang will focus on promoting spiritual, cultural, ecological, community-based, and urban tourism. It has built a list of 24 areas in need of investment in trade services and tourism.

HCM City eyes 23 million USD from ornamental fish exports

The Ornamental Fish Festival 2018 kicked off in Ho Chi Minh City on September 20.

The five-day event, held by the municipal Department of Agriculture and Rural Development and the Investment and Trade Promotion Centre of HCM City, aims to seek new markets for the city’s ornamental fish sector.

As many as 200 fish ponds were set up at the event, introducing various ornamental fish species with high economic value, including neon ornamental fish, koi fish and mollusc, among others.

The festival also offered chances for ornamental fish businesses to meet, update on advanced technologies and seek partners.

Experiences in fish breeding and safe production models in new-style rural communes were shared at the event, in addition to an area providing counseling on ornamental fish markets for businesses and visitors.

HCM City is striving to produce 180 million ornamental fish and export about 21 million fish this year, raking in 23 million USD.

The city’s ornamental fish is exported to 43 countries and territories around the world, with the EU market accounting for 54 percent.

According to the fisheries branch of the municipal Department of Agriculture and Rural Development, in the first nine months of 2018, the city shipped abroad 137 million ornamental fish, up 19.13 percent year on year.

Modern processing, preserving technology ensures food safety: experts

Applying modern processing and preserving technologies for produce after harvesting is crucial to ensure food safety and raise the value of agricultural products, experts said during a conference on food processing and preserving held in Ho Chi Minh City on September 20.

Dr Tran Ngoc Dam, Deputy Director of HCM City University of Technology and Education’s Renewable Energy Research Centre, said that Vietnamese continued to rely on cost-ineffective methods using chemicals, vacuuming and radiation in the final stages of packaging and preserving.

To preserve produce effectively, factors that affect quality must be tackled directly. Plasma technology, for example, can destroy and suppress microorganisms, while leaving the food quality and colour intact.

Tran Thi Ngoc Lan of the Binh Lan Environmental Biochemistry Co. Ltd., said that Vietnam’s volume of agricultural exports was still small compared to the country’s full potential due to undeveloped trade facilitation, high cost of materials, and limitations in farming and produce preservation (with farmers still using chemicals and preservatives).

Duong Thi Ngoc Diep of the HCM City University of Agriculture and Forestry said that vegetable processing should be improved, with more research on the nutritional value of vegetables and fruits to make full use of their best qualities.

The conference was held as part of the 2018 HCM City Animal Husbandry, Agriculture, Forestry and Fishery Processing Technology Fair and Exhibition, which ends on September 23.

Rooftop solar power to be insured

Users of rooftop solar power will be insured for the first time in Vietnam under a deal among solar energy solution provider SolarBK Holdings, Bank for Investment and Development of Vietnam (BIDV), and BIDV Insurance Corporation (BIC).

The three firms held an event in Ho Chi Minh City on September 20 to launch an insurance product for households that use SolarBK Holdings’ BigK solar panels to generate electricity.

As the quantity of power produced by rooftop solar panels largely relies on weather condition, the insured would get compensation if the quantity is not as expected. 

If the actual volume of electricity produced is lower than 75 percent of the estimated volume, the clients will receive money for the difference from the BIC over a period of five years.

According to Nguyen Ngoc Quynh from SolarBK Holdings, when customers purchase BigK rooftop solar systems from the SolarGATES, a subsidiary of SolarBK Holdings, from now to July 31, 2019, they will be provided with this new type of insurance.

The customers can also get loans from the BIDV for their purchases at preferential interest rates for up to 36 months that are applicable until October 31 this year.

This move aims to encourage more people to use the renewable energy in the future as the industry is still in its early stage. 

Vietnam promotes tourism in US

Trave firms of Vietnam and the US seek partnership at the event

“A soulful Vietnam” – a Vietnamese tourism promotion event - was held in Washington D.C., the US, the Southeast Asian country’s fifth largest tourism market, on September 19.

The event is the biggest of its kind Vietnam has held in the US in 15 years, drawing 35 domestic travel and hospitality firms such as Saigontourist, Typic Travel, Asia MBC and Gia Linh Travel.

It was attended by Nguyen Van Tuan, Director of the Vietnam National Administration of Tourism; Ann Chamberlin, Senior Vice President for Membership, Strategic Partnerships and Marketing of American Society of Travel Agents (ASTA); Vietnamese Ambassador to the US Ha Kim Ngoc; and several American travel firms.

According to VNAT Director Nguyen Van Tuan, following Washington, the event will head to New York. 

The event is part of efforts of Vietnamese tourism sector to diversify its market and lure more foreign visitors who stay longer and spend more in Vietnam, he said.

Meanwhile, Ambassador Ha Kim Ngoc said Vietnam has great tourism potential thanks to the natural beautiful landscapes across the country as well as its hospitable people.

In recent years, the Vietnam-US relationship has grown strongly in all fields, including tourism, he noted, adding the number of US tourists to Vietnam has increased through years, but has yet to match the potential of both sides.

The Northern American market, including Canada and the US, is one of the leading markets in Vietnam’s tourism strategy thanks to the high spending of tourists. Moreover, Vietnam and the US have long-term historical links, an advantage for Vietnam in luring US visitors.

During the event, Vietnam's beautiful destinations were highlighted, such as the UNESCO-recognised World Natural Heritage site of Ha Long Bay, Phong Nha-Ke Bang cave system and the cuisine and culture of Vietnam.

It was also a chance for Vietnamese firm to seek partnerships and learn from their US peers.

Following the event, an ASTA delegation is scheduled to visit Vietnam to promote tourism cooperation.

The number of US tourists to Vietnam has risen more than 10 percent annually in the past several years, reaching 614,000 in 2017.

Vietnam expects to welcome more than 1 million US visitors each year by 2020.

Beehouse JSC brings Vietnamese realty to Seoul

Despite being a newcomer to the fair, Vietnamese firm Beehouse JSC has wowed investors and visitors at this year’s Realty Expo Korea.

The real estate service company, based in Hanoi and the central city of Da Nang, brought two high-end resort projects to the event, which ran from September 19 – 21 in Seoul.

The first project was Risemount Apartment Da Nang, twin towers located in the centre of Hai Chau district, which consist of luxurious apartments and a 5-star hotel complex.  

The second was Movenpick Resort Lang Co, set along the popular Lang Co beach in the central province of Thua Thien – Hue.

Nguyen Thi Minh Nguyet, vice director of Beehouse JSC, said resort projects in Vietnam appeal to realty investors from the Republic of Korea (RoK). 

An investor has a profit rate of between 4 to 6 percent from a realty project and is subject to various types of taxes in the RoK, while he enjoys a rate of about 10 percent with flexible investment policies in Vietnam, Nguyet explained.

Realty Expo Korea is organised by the Korea Economic Daily, Hankyung Real Estate Research Institute, and International Real Estate Federation FIABCI. It is a large scale international realty exposition, offering investment opportunities and connecting players in the field. 

This year, the event was estimated to attract the participation of 20 countries and territories worldwide, along with thousands of firms and customers.

Military Bank joins SWIFT - Global Payments Innovation Initiative

The Military Commercial Joint Stock Bank (MB) recently launched the SWIFT – Global Payments Innovation Initiative (GPI) project.

SWIFT – GPI, which went live in January 2017, brings together banks worldwide which want to offer an enhanced cross-border payments experience, build their corporate client base and save payment enquiry costs.

More than 165 banks have joined the service, with the capability of channeling payments into more than 200 countries, representing 78 percent of SWIFT’s total cross-border payments in volume.

Speaking at the launching ceremony on September 17, Le Xuan Vu, Member of Board of Directors of the MB, appreciated the GPI Initiative , saying it will help the bank create an outstanding payment system that meets customers’ requirements.

Carlos Ugalde from SWIFT – a top global provider of secure financial messaging services – introduced participants to the outcomes of GPI implementation of banks across the world and the benefits the initiative offers banks and customers.

He affirmed he would help MB define the scale of carrying out the project and build a plan to ensure the GPI goes live in the first half of 2019.

Challenges in restructuring financial sector

Vietnam is confronting challenges in the process of restructuring the public financial sector, Deputy Minister of Finance Do Hoang Anh Tuan said during a forum in Hanoi.

Deputy Minister Tuan gave his assessment of the process at Vietnam Finance Forum 2018 held in Hanoi on September 20. 

As much as 82 percent of State revenue currently comes from domestic collection, but this is not yet sustainable because a substantial portion of local revenue comes from the sale of public assets and land use rights, Tuan said.

Transfer pricing, tax evasion and trade fraud are still problems for the country’s financial sector, he said.

State budget management remains cumbersome, he said, adding that the Government must improve its methods for managing national public assets.

The Government’s outstanding debt stands at 61.3 percent of the country’s GDP and foreign debt is 50 percent. Although public debt has been controlled, challenges remain. The Deputy Minister cited exchange rate risks and Government guarantees for private sector loans as major issues.

The business community is reliant on credit, he said. 

Tuan added outstanding bank loans amount to 1.4 percent of GDP, much higher than the recognised acceptable level of 0.6-0.8 percent. This is obviously a challenge for the financial sector.

He stressed the need to find an abundant and sustainable source of capital for the corporate sector, adding that the restructuring efforts can not be delayed. The Ministry of Finance has tried to consolidate the country’s budget and expenditures.

According to USAID Mission Director for Vietnam Michael Greene, impressive growth has transformed the country’s economy into that of a middle-income country.

USAID will continue to actively support Vietnam in financial institution reform for rapid and sustainable economic growth, with the overall goal of promoting national self-reliance, Greene said.

Bruno Angelet, head of the European Union delegation to Vietnam, said the EU considers the country’s public finance reform an important issue.

He said the EU hopes to help Vietnam address climate change, pollution, taxation and financial management as it transitions to a green economy.

Themed restructuring national finance towards rapid, inclusive and sustainable development, the forum drew about 300 delegates from the Party Central Committee’s Economic Commission, the Ministry of Finance, the State Bank of Vietnam and the Ministry of Planning and Investment.

The United States Agency for International Development (USAID), the European Union and the World Bank also sent delegates to the event.

Quang Ngai looks for investors in large-scale heavy industry

The central coastal province of Quang Ngai wants to attract foreign investors in large-scale heavy industry related to deep-water sea ports which is an advantage of the province.

Director of the provincial investment promotion centre Nguyen Duc Thanh added that Quang Ngai also hopes to engage investors in developing light industry to produce products for export, support industry and environmentally-friendly projects.

The province is currently home to 44 valid foreign-invested projects with total capital of nearly 1.37 billion USD, mostly from the Republic of Korea, China, Japan and Singapore.

Foreign-invested enterprises in Quang Ngai are employing around 12,000 workers.

According to head of the external economic section under the provincial Department of Planning and Investment Tran Hoang Vinh, during 2005-2010, nearly 3.7 billion USD of foreign direct investment (FDI) was poured into 17 projects in Quang Ngai. However, during 2011-2016, the province attracted only 599 million USD in 34 projects.

Vinh said the two largest projects in Quang Ngai are the Doosan Heavy Industries Vietnam with an investment of 315 million USD and the Vietnam-Singapore Industrial Park (VSIP Quang Ngai) capitalised at 139.8 million USD. They are operating effectively, contributing to local socio-economic development. 

Quang Ngai hopes to find potential investment partners in Japan, the RoK, Singapore and Thailand through businesses operating in the province.

Public agencies in the province are making drastic efforts to reform administrative procedures, which coupled with the province’s numerous incentives are hoped to attract more foreign investors to Quang Ngai, Director of the provincial investment promotion centre Nguyen Duc Thanh said.-

Long An houses more solar power plant

The Mekong Delta province of Long An will accommodate its third solar power plant as construction of the Europlast Long An project began on September 21. 

Covering nearly 60ha in My Thanh Bac commune, Duc Hue district, the 1.15 trillion VND (49.45 million USD) solar power project has a designed capacity of 50 MWp. It is scheduled to be put into operation by June 2019. 

Addressing the groundbreaking ceremony, Nguyen Van Duoc, Vice Chairman of the provincial Party Committee, said the project is of special significance as it will contribute to electricity resources not just in Long An but for the whole country, especially given the range of problems with hydropower and fossil fuels. 

The plant is expected to create a premise for the development of other solar power projects in Long An, in line with the government’s policy of prioritising renewable and clean energy, minimising the adverse impacts of traditional electricity resources exploitation on the environment, and ensuring national energy security. 

Aside from the Europlast project, Long An is home to two plants in Thanh Hoa and Duc Hue communes. 

Vietnamese localities are taking measures to attract more investment in renewable energy, especially solar power.

According to the Government’s targets, solar power is expected to become the main renewable energy source in the future, with installed capacity to be increased from 6-7 MW by the end of 2017 to 850 MW by 2020 (1.6 percent of the country’s power generation) and 12,000 MW by 2030 (3.3 percent of the country’s power generation).

Vietnam is amongst the most sunny countries in the world, with the Central Highlands and south central regions recording between 2,000 and 2,600 hours of sunshine every year, reported the Vietnam Clean Energy Association.

Average solar radiation is 150 kcal/sq.m, or about 2,000 to 5,000 hours per year. However, despite the nation’s great natural advantages, solar power has not yet been harnessed to maximise its full potential. 

Petro price rises 320 VND per litre on Sept 21

The retail price of bio-fuel E5 increased by 320 VND per litre, while that of RON 92 rose 293 VND per litre from 3pm on September 21 due to rising global prices.

The Ministry of Industry and Trade (MoIT) and the Ministry of Finance (MoF) announced that the prices of E5 must not be higher than 20,331 VND per litre, while those of RON 95 should not be higher than 21,770 VND per litre.

Meanwhile, the ceiling prices of diesel 0.05S, kerosene, and mazut 180CST 3.5 S are capped at 18,126 VND per litre, 16,638 VND per litre, and 14,942 VND per litre, up 57 VND, 124 VND, and 26 VND per litre, respectively.

The global oil and petrol prices have surged to 86-91 USD a barrel. The price of RON 92, which is used to produce bio-fuel E5, increased from 85.8 USD in the previous adjustment to 86.8 USD per barrel.

The two ministries have also decided to keep the use of subsidies from the petrol price stabilisation fund unchanged. Subsidies for E5 RON 92 are 1,563 VND per litre, while those for RON95, diesel, and kerosene are 960 VND, 400 VND, and 300 VND per litre.

The fund has been used constantly in recent times to mitigate the impact of rising global prices and contribute to curbing the inflation rate.

Announcements regarding fuel price changes are scheduled every 15 days to keep up with swings in the global market.

This has been the second consecutive rise within nine months after ministries had tried to keep the selling price unchanged by using the price stabilisation fund. 

Da Nang lands 46.4m USD factory project

The central city of Da Nang has granted an investment licence to the first ready-built factories for rent project at the city’s Hi-Tech Park with the aim of attracting more investors to the park.

The project, which secured a 1.05 trillion VND (46.4 million USD) investment from joint-stock Long Hau Company, will begin construction in the fourth quarter of this year. It will offer 29.6 hectares of international-standard work space for domestic and foreign businesses.

This is the first project of its kind in the 1,010 hectare park in Hoa Vang district, 20 km west of the city.

General Director of Long Hau Company Tran Hong Son said the project will also build workshops ranging in size from 500 sq.m to 3,000 sq.m, providing space for hi-tech small and medium-sized enterprises at the park.

He said the company would support new investors with a one-stop shop procedure to ensure minimal set-up time at the park.

The September 16 licensing event also saw Japanese company Hatsuta Seisakusho agree to the site’s first factory lease contract for an area of 6,000 sq.m.

Hatsuta Seisakusho will start construction of the park’s first hi-tech fire extinguisher equipment project with an investment of 60 billion VND (2.7 million USD).

Hatsuta Kazuhiro, president of the Japanese company, said this was his firm’s first project in Vietnam. He hoped the company would be successful working with Da Nang’s young and dynamic labour force.

It is the third hi-tech project from Japan to invest in the park. Tokyo Keiki Precision Technology Inc and Niwa Foundry poured a total of 62 million USD into the park since 2013, officially beginning operations at the site in 2015.

To date, the park has attracted 15 projects worth a combined 390 million USD in fields as varied as automation, nanotechnology, pharmaceutical production and embedded software systems.

Da Nang hopes the park will become a hub for green investors. It is one of three major multi-functional hi-tech parks in Vietnam, only ranking behind its counterparts in HCM City and Hanoi.

It is situated near the Da Nang-Quang Ngai Expressway to connect with the Chan May Economic Zone in Thua Thien-Hue, the Chu Lai Economic Open Zone in Quang Nam and the Dung Quat Economic Zone in Quang Ngai province.  

Da Nang has called for investment in 68 public-private-partnership projects, 22 of which are hi-tech projects worth 1.4 billion USD in total.

Ba Ria-Vung Tau- a magnet for FDI projects

The southern province of Ba Ria-Vung Tau has been among leading localities in the country in attracting FDI over the past 30 years, with 343 projects totally valued at 27.3 billion USD.

Currently, renowned firms from some 30 countries and territories are landing investment in the province, including reputed names like ACDL, SMC, Nippon, Mitsubishi, Posco, Sumitomo, Itochu and Kyoei Lotte, among others.

FDI projects have caused enormous impact on the local socio-economy as they have created jobs for more than 69,000 labourers so far. Also, they are billed as a significant motive for economic shifting towards industrialisation, while making contributions to local gross domestic products (GDP).

According to Bui Ngoc Diep, Vice President of the province’s Association of Small and Medium Enterprises, provincial authorities should pay due attention to large tourism projects which are labour intensive and have strong connections with local firms.

The provincial Party’s Committee recently issued a resolution on improving the efficiency of investment attraction by 2020. Accordingly, the province will give top priority to projects which are environmentally friendly, and focus on sea port, port logistics, tourism, and high-tech agriculture.

The resolution also stipulates regulations on shortening the time taken for administrative procedures and developing the Provincial Competitiveness Index, among others to build a positive business climate. This is believed to be key for the province to develop sustainably in the future.

Thirty percent of Vietnam’s population to shop online by 2020

More Vietnamese people are fond of shopping online and online shoppers makes up 30 percent of the country’s population, which translates to around 27 million people by 2020.

The Vietnam e-Commerce and Digital Economy Agency under the Ministry of Industry and Trade said fastest-growing retail e-commerce markets have seen in Vietnam for five recent years. The ecommerce markets grow gradually and stably at over 20 percent annually from $2.2 billion in 2013 to $6.2 billion in 2017.

Economists forecast that e-commerce revenue will continue growing by around 20 percent for the period 2018-2020 and it will reach $10 billion in 2020 accounting for 5 percent of the country’s retail and consumer service turnover.

Thirty percent of online shoppers will spend nearly $350 each annually.

Most online shoppers prefer cash on delivery (COD), the sale of goods by mail order where payment is made on delivery rather than in advance. This mode of payment increased from 74 percent in 2013 to 82 percent in 2017. Additionally, those buying things on the Internet pay through banks.

54 percent of Vietnamese shoppers are satisfied with their online shopping experiences in 2017.

Vinafood 2 to export 2 million tons of rice to Philippines

The Vietnam Southern Food Corporation (Vinafood 2) signed a memorandum of understanding (MoU) with the Philippines’ AgriNurture, Inc. (ANI) to export two million tonnes of rice to the Philippines annually from 2019.

Vinafood 2 to export 2 million tons of rice to Philippines

Under the agreement that will run until 2020, Vinafood 2 will supply 500,000 tons of rice every quarter.

The Philippines has imported millions tonnes of rice every year, mainly from Indonesia, Malaysia and Vietnam.

Hanoi revokes slow-moving projects

People’s Committee in Hanoi has decided to revoke sluggish projects in September.

The Department of Planning and Investment has found out that of 383 slow-moving projects in the Committee’s list of sluggish projects to the department, 161 projects violated land law. Moreover, the 

department plans to revoke 55 of them in September.

Additionally, from now on, the Natural Resources and Environment in Hanoi has set up inspection team to visit 21 projects as well as check whether the investors of 89 projects have revamped violations 

which People’s Council in Hanoi had pointed out before.

The Department will propose revocation for delayed projects, using the land for wrong purpose or not paying tax while it will call for cooperation from other departments to beef up the progress for other 

projects which faced difficulties in site clearance or design changes.

People’s Committee requested the Department of Planning and Investment to liaise with other departments to build a software for managing project information better.

VinTech, UTS ink MoU in tech RD     

Vintech Technology Development JSC – an affiliate of the conglomerate Vingroup – and the University of Technology Sydney (UTS) will foster bilateral co-operation in technological research and development (R&D) in their areas of strength.

This consensus followed the Memorandum of Understanding (MoU) inked between the two sides on Wednesday in the capital.

The MoU will help the two sides build comprehensive co-operation in fields such as data analysis, artificial intelligence, robotics, electronic design, automation, the Industry 4.0 and the Internet of Things, Vintech said in its statement.

Nguyen Viet Quang, Vice President and CEO of Vingroup Group, said he hoped that with its experience and prestige, "UTS will join us in speeding up R&D activities and technological transfer while boosting exchange of data and information in order to bring our researches into the reality".

In his speech, Attila Brungs, President of UTS, said the MoU proved a strong commitment by both sides to co-operate more closely in studying the foundations of Industry 4.0, such as artificial intelligence, self-propelled vehicles, robots and cyber-security.

Last month, Vingroup announced its goal to become an international-standard technology-industry-service business by 2028. The group also signed agreements with the top 50 universities in Viet Nam. That enabled it to provide funding for university science-technology projects and co-ordinate with them in training and educational programmes to share ideas and lectures.

The above-mentioned MoU with UTS is one of the group next steps to achieve its goal and then contribute to the country’s sustainable and long-term science and technology development, according to Vintech. 

Number of firms in Viet Nam surges by over 50%     

Nearly 517,900 businesses were operating in Viet Nam in 2017, an increase of 51.6 per cent from the figure recorded in 2012, according to the general economic census announced by the General Statistics Office of Viet Nam (GSO) on September 19.

Despite the strong growth in the number of enterprises, there were just over 10,000 large companies, accounting for a mere 1.9 per cent of the total. The rest were small- and medium-sized firms.

The southeastern region was home to nearly 216,000 businesses, accounting for 41.7 per cent of all companies operating in the country. The GSO said that the results of business operations and production in 2016 were better than in 2011, with net revenue recorded at VND17,850 trillion (US$793.7 billion), 71 per cent higher than that five years earlier.

Net revenue during 2011-2016 surged 11.4 per cent or VND1,400 trillion ($62.2 billion). The non-State business sector had the largest earnings, making up 55.9 per cent of the total net revenue recorded in the business sector.

Head of the GSO’s Industry Statistics Department Pham Dinh Thuy said that the strongest growth in net revenue was seen in FDI enterprises, which expanded 134.5 per cent in 2016 as compared to 2011.

Meanwhile, State-owned firms only contributed 16.7 per cent to net revenue. Return on assets (ROA) of the companies were calculated at 2.7 per cent in 2016, with the highest rate recorded in the FDI sector, 6.9 per cent, followed by State-owned firms with 2.6 per cent and non-State firms with 1.4 per cent.

The industrial and construction sectors reported substantial ROA of 4.8 per cent, while the profitability ratios in the agro-fishery-forestry and service sectors were 2 per cent and 1.6 per cent.

GSO General Director Nguyen Bich Lam urged the Government, ministries, sectors and localities to complete institution-building, accelerate the reform of administrative procedures and produce rational measures to remove bottlenecks for enterprises and household businesses.

As economic development in the context of the Fourth Industrial Revolution very much depends on the quality of human resources, Lam said: “It is necessary for the Government to renew training methods to meet Industry 4.0 requirements”.

Revenue from outsourcing revealed for the first time ever

During the meeting, for the first time ever, the GSO also revealed the revenue that Vietnamese businesses earn from outsourcing goods for foreign producers in 2016, totalling US$8.6 billion.

When outsourcing a product, a firm provides “cut and sew” services, processing or assembling products for the foreign partners, using the materials owned by the foreign companies that contract them.

According to Lam, in 2016, Viet Nam had 1,740 enterprises conducting outsourcing activities for foreign enterprises. Of these, 1,687 enterprises provided outsourcing services and 52 sent materials abroad for processing.

Major products involved in the outsourcing practice included textiles, footwear, telephones and components, computers and electronic devices and other goods.

Of the total $8.6 billion earned from outsourcing activities in 2016, the revenue of the textile and footwear sector accounted for the largest proportion—48 per cent, with value estimated at $4.1 billion. That of the footwear was $2.7 billion, accounting for 32 per cent. Revenue of telephones and components reached only $268 million, accounting for 3.1 per cent, while that of computers and electronic devices touched $63 million, accounting for 0.7 per cent.

The total value of imported materials used for outsourcing activities reached $20.2 billion, accounting for 11.5 per cent of the total import value of the country.

Da Nang lands $46.4m factory project     

Da Nang has granted an investment licence to the first ready-built factories for rent project at the city’s Hi-Tech Park with the aim of attracting more investors to the park.

The project, which secured a VND1.05 trillion (US$46.4 million) investment from joint-stock Long Hau Company, will begin construction in the fourth quarter of this year. It will offer 29.6 hectares of international-standard work space for domestic and foreign businesses.

This is the first project of its kind in the 1,010 hectare park in Hoa Vang District, 20 km west of the city.

General director of Long Hau Company Tran Hong Son said the project will also build workshops ranging in size from 500 sq.m to 3,000 sq.m, providing space for hi-tech small and medium-sized enterprises at the park.

He said the company would support new investors with a one-stop shop procedure to ensure minimal set-up time at the park.

The September 16 licensing event also saw Japanese company Hatsuta Seisakusho agree to the site’s first factory lease contract for an area of 6,000 sq.m.

Hatsuta Seisakusho will start construction of the park’s first hi-tech fire extinguisher equipment project with an investment of VND60 billion ($2.7 million).

A Japanese investor will open operations at a factory in the park soon. — VNS Photo Cong Thanh

Hatsuta Kazuhiro, president of the Japanese company, said this was his firm’s first project in Viet Nam. He hoped the company would be successful working with Da Nang’s young and dynamic labour force.

It is the third hi-tech project from Japan to invest in the park. Tokyo Keiki Precision Technology Inc and Niwa Foundry poured a total of $62 million into the park since 2013, officially beginning operations at the site in 2015.

To date, the park has attracted 15 projects worth a combined $390 million in fields as varied as automation, nanotechnology, pharmaceutical production and embedded software systems.

Da Nang hopes the park will become a hub for green investors. It is one of three major multi-functional hi-tech parks in Viet Nam, only ranking behind its counterparts in HCM City and Ha Noi.

It is situated near the Da Nang-Quang Ngai Expressway to connect with the Chan May Economic Zone in Thua Thien-Hue, the Chu Lai Economic Open Zone in Quang Nam and the Dung Quat Economic Zone in Quang Ngai Province.

Da Nang has called for investment in 68 public-private-partnership projects, 22 of which are hi-tech projects worth $1.4 billion in total. 

Experts discuss digital copyright     

It will be difficult to fully resolve the issue of piracy of television broadcasts without the co-operation of users and the active support of the authorities, said experts at a workshop in Ha Noi on Wednesday.

The workshop, titled “Protection of broadcasters’ rights in the digital environment”, was co-organised by the Copyright Office of Viet Nam (COV), K+ Satellite Digital Television and the Korea Copyright Commission (KCC).

The workshop was held in order to raise awareness of the need for observance of legal provisions on the protection of copyright and related rights, including the rights of broadcasting organizations, and to work out effective solutions to increase the efficiency of anti-piracy in the digital environment.

Viet Nam has a legal system meeting the requirements of copyright protection and related rights in the country and international integration. The country’s commitments to the World Trade Organisation (WTO) and international treaties in force in Viet Nam have been gradually and effectively implemented, protecting the interests of citizens and fulfilling legal obligations when using the work of citizens and legal entities of member countries.

Nguyen Quang Dong, head of the Institute for Policy Studies and Media Development (IPS), said that violations on the internet were always more complicated and caused damage faster than traditional behavior, because the violations can more quickly reach a larger audience.

Therefore, technology to detect and handle violations needed to be applied more widely, he said. "The responsibility of the Internet Service Provider (ISP) businesses needs to be enhanced."

In addition, revenue from illegal advertisements should also be blocked, he noted, by publishing the list of infringing websites and notifying the advertisement agencies to set up a black list.

Vincent Helluy, a representative of Canal+ Group, shared some experiences at the workshop including dealing with Vietnamese online newspaper publishing links and tips to watch sport games illegally, illegal live streams on social media platforms and illicit links on search engines. He also discussed the issues of overseas providers of infringing content and addressing complex issues via regional and global content protection alliances.

He also suggested related sides initiate legal proceedings in a singular context and advocate for the most appropriate legal framework to protect intellectual property rights.

Seaports at Dung Quat EZ need to reach regional standards     

Dung Quat Economic Zone should seek investors for seaports in the zone to develop them to regional standards, according to an official.

Le Viet Chuc, secretary of Quang Ngai’s Party Committee, made the statement at a meeting between provincial authorities and the management board of Dung Quat Economic Zone and Quang Ngai Industrial Zones Authority in Quang Ngai on Tuesday.

To reach the target, Chuc requested the management board review and adjust the development plan on seaports in the Dung Quat EZ to meet enterprises’ demands. The board should draw investment to build seaports for containers in the EZ and technical infrastructure in the seaports.

Doing so would improve the quality and efficiency of ports in Dung Quat EZ and enterprises’ investment activities in the seaports in the EZ, he said.

The management board was asked to propose solutions to improve the quality of services at the EZ’s seaports, meeting the strong demand of enterprises.

The board should control service prices and draw investment in services in the seaports, while working with State agencies to achieve administrative reform of import and export activities in the seaports.

According to a report of the management board, 20 enterprises have demand for transport of import and export goods containers at seaports in Dung Quat Economic Zone and Quang Ngai’s industrial parks, with a capacity of about 6,500 containers per year.

However, at present the EZ and IPs in Quang Ngai lack container terminals, so the firms must transport the containers to Da Nang or other neighbouring seaports.

Therefore, the management board recommended provincial authorities find investors to develop container terminals in Dung Quat Economic Zone.

Now, Dung Quat Economic Zone has eight seaports, including seven ports in operation and one port under construction. The seven ports include three general ports, three specialised ports of Doosan and Dung Quat oil refinery plan and one port of the shipyard.

Meanwhile, a system of 11 specialised ports of Hoa Phat Steel Factory is under construction. 

HCM City, Bulgaria foster economic cooperation

Ho Chi Minh City hopes that Bulgaria will create better conditions for the city’s enterprises and goods to access the country’s market, said a local official.

Nguyen Thanh Phong, Chairman of the municipal People’s Committee, made the suggestion at a meeting with Bulgarian Minister of Economy Emil Karanikolov in the city on September 20.

Phong declared that the city is willing to work a bridge connecting Bulgaria with the ASEAN market and provide the European country with logistics services.

He affirmed that HCM City always attaches much importance to fostering cooperation with Bulgaria, adding that that the establishment of the Bulgarian Chamber of Commerce and Industry in the city in 2013 showed the country’s interest in developing trade and investment partnership with HCM City.

Phong expressed his belief that the visit of the Bulgarian Minister of Economy will help reinforce the collaboration between Bulgaria and the city, while promoting economic ties between the two sides.

He said the city welcomes Bulgarian firms to invest in the areas of its priority, including food processing and packaging, health care, pharmaceutical production, urban planning, renewable energy, and smart city building.

At the same time, tourism, education, trade are also promising sectors for Bulgarian investors, Phong said.

For his part, Karanikolov lauded socio-economic achievements of Vietnam over the past years.

He held that the bilateral economic and trade cooperation has yet to match potential and aspirations of both sides.

Bulgaria is willing to become one of the first European Union (EU) member countries to approve the free trade agreement between the EU and Vietnam with the hope that the deal will bring about more favourable conditions and opportunities for economic-trade and investment activities between the two countries, he said.

Karanikolov said that his country hopes to further bolster collaboration among localities of the two nations, especially in economy, tourism and culture. He vowed that Bulgaria will give optimal conditions for Vietnamese investors, including those from HCM City, to invest and do business in the country, while serving as a gateway for Vietnamese goods to enter Europe.

The minister also pledged to support Vietnamese investors in legal procedures in the country and Europe, while encouraging Bulgarian firms to invest more in HCM City.

Last year, trade between HCM City and Bulgaria reached 21.8 million USD. HCM City imported chemicals and pharmaceutical materials and products from Bulgaria.

Currently, Bulgaria is running two projects in the city with combined investment of about 1 million USD.

Vietnam, Hong Kong hold potential for stronger cooperation

Vietnam and Hong Kong (China) are in the face of big opportunities to push up investment and trade cooperation, experts said at a workshop held in Ho Chi Minh City on September 20.

The workshop on “Vietnam-Hong Kong cooperation for prosperity” was part of the “In Style – Hong Kong”, the largest trade, investment and lifestyle promotion event ever held in Vietnam by the Hong Kong Trade Development Council.

Financial Secretary of the Hong Kong Special Administrative Region Paul Chan Mo-po said Hong Kong is China’s key gateway to the world and vice versa, while Vietnam is among economies with the most impressive growth in Asia.

He said Vietnam, with its rapid infrastructure, economic and technological development, has clear growth orientations and attracted attention from foreign investors, including those from Hong Kong.

The partnership between Hong Kong and Vietnam will play a key role in shaping Asia’s development into a strategic centre in many fields, he stressed, adding that the ASEAN-Hong Kong free trade agreement, which was signed last year, is considered a boost to trade, investment and service flows between the two sides in the coming time.

Agreeing with the view, Jonathan K. S. Choi, Chairman of the Hong Kong-based Sunwah Group, said Vietnam and Hong Kong have advantages to supplement each other in economic cooperation.

He said Vietnam is currently not only an export processing centre but also a large-scale consumption market with a growing middle class, adding that it is an aspect that Hong Kong companies could exploit.

To captitalise on chances offered by both sides’ potential, Chairman of the Hong Kong Trade Development Council Vincent H.S. Lo suggested Vietnamese firms actively attract financial sources from Hong Kong to develop domestic infrastructure and industry, while using trade transaction floors in Hong Kong to promote its goods to global buyers.

He said Hong Kong firms need to quickly set up partnerships with their Vietnamese enterprises to seize investment and business opportunities in the market and expand their reach to other markets in ASEAN.

Lo noted the two economies still have large room to boost investment in the fields where Hong Kong holds strengths and Vietnam have demand such as supporting industry, finance – banking, and logistics.

Sharing his investment experience in Vietnam, John Cheh from the Hong Kong-based Esquel Group said foreign businesses operating in Vietnam should not only focus on cheap labour for export processing, but also pay attention to creating core values and contributing to the country’s socio-economic development.

He said Vietnam now owns many high competitive production sectors and a quality workforce, along an increasing consumption power. 

Cheh said Hong Kong enterprises should work with Vietnamese partners to produce goods and develop the market, and advised them to pay their local workers properly in exchange for their long-term commitments.

Vietnam is Hong Kong’s biggest export market in ASEAN and its 6th largest export market in the world. Meanwhile, Hong Kong is Vietnam’s 9th biggest trade partner and 6th biggest foreign investor. 

Bilateral trade exceeded 18 billion USD in 2017. By the end of August 2018, Hong Kong has a total of 1,353 projects worth 19 billion USD in Vietnam, mainly focusing on the fields of production, logistics, food processing, hotel and travel.

HCM City seeks Hong Kong’s experiences in financial management

Chairman of the Ho Chi Minh City People’s Committee Nguyen Thanh Phong voiced his hope that Hong Kong, as a leading financial centre of Asia and the world, will share its experiences in financial management, helping HCM City become a financial hub of the region.

Phong expressed the wish while receiving Paul Chan Mo-po, Financial Secretary of Hong Kong, in HCM City on September 20.

Relations between Hong Kong and Vietnam, including HCM City, are thriving, notably in trade, investment and economy, he said.

According to the chairman, Hong Kong is currently a major trade partner of Vietnam and HCM City in particular, with two-way trade recorded at 17.5 billion USD in 2017.

As of August this year, Hong Kong ranked 7th among 100 countries and territories investing in HCM City with 747 projects worth 2.4 billion USD in total.

HCM City will create favourable conditions for foreign companies, including those from Hong Kong, to invest and do business in the city in the time ahead, Phong said.

The city also wants to work with Hong Kong to promote cooperation in tourism and cultural exchanges, he added.

For his part, Chan stressed that the bilateral ties have been strengthened over the years, adding that businesses of Hong Kong have paid heed to the Vietnamese market in the spheres of garment and textiles, banking, real estate and logistics, among others.

Hong Kong wants to invite Vietnamese firms to join its financial market and tap China’s potential in the Guangdong Bay area, the Financial Secretary said.

He also thanked the city’s leaders for their assistance in the successful organisation of the recent “2018 In Style – Hong Kong Expo” in HCM City, adding that Hong Kong is willing to assist and share experiences in financial management with the city, along with providing technical support and financial sources if HCM City issues bonds at the Hong Kong financial market.

Hong Kong will facilitate HCM City’s technological companies and start-ups through venture investment funds, he said.

In addition, the two sides hold great potential in cultural and tourism cooperation, Chan noted, saying that Hong Kong hopes to increase the exchange of delegations in those fields to bolster mutual understanding, friendship, and collaboration.

“In Style – Hong Kong” promotion campaign opens in HCM City

“In Style – Hong Kong”, the largest trade, investment and lifestyle promotion event ever held in Vietnam, kicked off in Ho Chi Minh City on September 20, attracting thousands of Vietnamese and Hong Kong firms. 

Chairman of the Hong Kong Trade Development Council Vincent HS Lo said “In Style – Hong Kong” introduces unique culture, cuisine and entertainment of Hong Kong to the Vietnamese public. 

According to him, two-way trade between Vietnam and Hong Kong (China) increases by nearly 12 percent each year, reaching 18 billion USD last year. Vietnam is one of the fastest-growing economies in Southeast Asia and the largest importer of Hong Kong. Meanwhile, Hong Kong serves as a gateway for trade between Vietnam and China, and between Vietnam and many other Asian markets. 

Financial Secretary of the Hong Kong Special Administrative Region Paul Chan Mo-po said the event offers a wide array of Hong Kong’s world-class products and professional services to Vietnamese partners and friends, adding that via the event, Hong Kong wants to further boost economic and trade ties as well as people-to-people exchange with Vietnam. 

During the two-day event, thematic seminars on the potential of cooperation in investment, trade and logistics will also be held. 

Speaking at the opening ceremony, Deputy Foreign Minister Le Hoai Trung said Vietnamese and Hong Kong businesses put high hope on their future ventures. 

He said Vietnam is now the largest trade partner of Hong Kong in ASEAN while Hong Kong is the ninth largest trade partner and the sixth largest foreign investor of Vietnam. As of the late August, Hong Kong invested in 1,353 projects worth 19 billion USD in Vietnam. 

As a dynamic and most free economy in the world, Hong Kong is the third largest supplier of foreign direct investment in Asia. 

Vietnam welcomes Hong Kong firms to expand operations in the country in fields of strength such as infrastructure, support industry, and finance-banking service, Trung added.