Steel producer Dai Thien Loc Corporation plans to cancel its listing on the Ho Chi Minh Stock Exchange (HoSE) and move to the Unlisted Public Company Market (UPCoM).

The plan will be delivered to shareholders for approval after the list of shareholders is finalised on October 18, 2019.

The firm's shares have been on HoSE’s warning list since May 2019 as the company has reported losses since 2018.

In 2018 Dai Thien Loc announced a VND17 billion (US$731,000) loss, which was a big decline from 2017's profit of VND198 billion.

In the first six months of 2019, the company recorded a VND38 billion loss.

According to the firm, the steel market has become more competitive while it is short of good-quality workers, products and funding.

Shares of Dai Thien Loc ended Friday at VND26,000 ($1.12) per share, having lost total 36.3 per cent in the last four months.

Malaysian firms consider incentive tour services in Danang

The Danang Tourism Promotion Center, in cooperation with Malaysian Association of Tour and Travel Agents and tourism firm Omega Tours, has organized a fam-trip for representatives of Malaysian travel firms from September 9 to October 3 to study incentive tour services in the city, raising Danang’s profile in the global travel industry as the country seeks to attract more foreign tourists and delegates.

Incentive tour services fall under Meetings, Conferences, Incentives and Events (MICE) tourism and are used by companies or organizations as a noncash reward for their productive employees and loyal customers.

The fam-trip delegation includes 12 representatives of tour operators specializing in incentive tour services in Malaysia’s Penang and Kuala Lumpur. These representatives are conducting a survey on various tourist destinations and tourism products and services in the central coastal city of Danang for their planned tourism programs.

Tourism firms active in the incentive travel service industry typically require a welcome service for visitors at airports and souvenirs for groups of tourists, as they enjoy these benefits at other destinations.

Nguyen Ngoc Anh, director of Omega Tours, noted that the firm has cooperated with several partners supplying lodging, entertainment, teambuilding and gifting services to serve Malaysian customers in need of an incentive tour service.

“This is a potential market for MICE tourism, including the incentive tour service, in the Southeast Asian region,” Anh said.

Between January and August, Malaysian tourist arrivals in the city soared by 60%.

Statistics from the Immigration Police Office of Danang show that the city welcomed some 4,810 Malaysian visitors in January. The figure rose to over 7,490 in August. Over the eight-month period, Danang City attracted 55,562 Malaysian travelers.

The number of tourists from the market to the city is forecast to continue rising for the rest of the year.

Banks stop offering medium-, long-term foreign currency loans

Local banks stopped offering medium- and long-term foreign currency loans today, October 1, as part of the State Bank of Vietnam’s plan to tighten control over these loans and prevent dollarization in the economy.

Enterprises, in response to the latest announcement, said that they may face obstacles as a result of the decision, while representatives of the banking sector said that the suspension would not affect corporate operations.

Nguyen Van Kich, board chairman of Cafatex Corporation, was cited by Thanh Nien newspaper as saying that the move was unexpected, as interest rates for U.S. dollar loans are lower than those for Vietnamese dong loans.

When importers have to switch from taking out U.S. dollar loans with an annual interest rate of 4% to taking Vietnamese dong loans with interest rates of up to 8%-9% per year, their borrowing costs will double. This has prompted them to revise their product prices, resulting in possible hikes in the prices of imported goods.

As the regulation was discussed years ago and the central bank has extended dollar lending multiple times, the Cafatex chairman expected it to be executed later, at a more appropriate time.

With low interest rates being applied in many countries and imported goods being priced lower than locally made items, local firms will struggle to compete in global markets if they are required to get Vietnamese dong loans at higher interest rates, said Kich.

Tran Thi Nguyet Oanh, director of Corporate Banking in the south at HSBC Vietnam, was cited by Thanh Nien newspaper as saying that the regulation, on taking effect, will restrict the foreign currency borrowing of importers to serve domestic demand.

Even though the interest rates for Vietnamese dong loans remain higher than those for greenback loans by roughly 2%-3%, companies’ borrowing costs in Vietnamese dong will rise only slightly as they can sell foreign currencies in exchange for Vietnamese dong, with the fluctuation of the dong exchange rate at some 1%-2%, she added.

The introduction of the regulation to gradually curb foreign currency lending has not affected companies much as it was planned in great detail, allowing companies to adjust their business plans, said the corporate banker.

Earlier, on March 31, local banks had stopped offering short-term foreign currency loans.

Italian companies hope to partner with VN in agriculture production

The Italian Government hopes to promote commercial activities in Viet Nam, especially in the field of manufacturing and processing agricultural products, turning Viet Nam into a strategic entrance for trading and investment of Italy in Southeast Asia, said Italian Ambassador to Viet Nam Antonio Alessandro.

He made the statement during the event “Machinery Made in Italy”, held in Ha Noi on Tuesday and Wednesday by the Italian Chamber of Commerce (ICHAM) in Viet Nam and the system of Italian Chambers of Commerce in 11 Asian countries.

ICHAM is holding the event with the aim of supporting Viet Nam’s agricultural sector. At the event, a B2B meeting was organised to connect Italian companies operating the field of food machinery and importers and distributors of agricultural products from the Asian countries of India, South Korea, Singapore, Malaysia, Indonesia, Thailand and Viet Nam.

ICHAM and the system of 11 Italian Chambers of Commerce in Asia hope this event would offer business opportunities for Italian food machinery companies and their customers in Asia.

The strategic partnership between Viet Nam and Italy has witnessed remarkable development in many fields, especially in economic co-operation, said Alessandro.

Machinery has accounted for the biggest export value ​​from Italy to Viet Nam. Italy is one of the world’s leading countries in exporting technology, especially machinery production lines, because it has invested in thorough research on production technology to provide the best technological solutions for customers and minimising production costs.

Ambassador Alessandro told Viet Nam News that the Italian Government attached great importance to Viet Nam's market, adding that the Viet Nam - EU Free Trade Agreement (EVFTA) would open many opportunities for businesses of the two countries, including opportunities for small and medium enterprises of Italy.

In the years to come, many Italian businesses will head to Viet Nam to open investment facilities, provide equipment and technological lines for Vietnamese enterprises in many localities in the country, he said.

In 2018, the export of agricultural products of Viet Nam hit a record of US$40.02 billion. This was also the year with the highest growth rate in the past seven years and this attracted many big foreign companies to invest in agriculture in Viet Nam.

Insurance market attracts plenty of foreign interest

Major international life insurance companies are coming to the growing Vietnamese market through bancassurance and acquisition deals.

German insurer Allianz and Japanese insurers Nippon Life and MS&AD Insurance, among several others, are vying to buy the Singapore and Vietnam businesses of Britain’s Aviva in a deal estimated to be worth $2-2.5 billion, Reuters reported recently.

It quoted sources as saying the talks are in an early stage and terms could change, and Canada’s Sun Life Financial and Manulife Financial Corp are also among around half a dozen suitors.

Aviva had originally entered Vietnam in 2011 by establishing a 50:50 joint venture with state-owned lender Vietinbank, one of Vietnam’s three biggest banks by assets, called Vietinbank Aviva Insurance.

In April 2017 Aviva acquired VietinBank’s 50 percent stake, renamed it Aviva Vietnam Life Insurance Company Ltd, and signed an exclusive 18-year deal to distribute its life insurance products through VietinBank's network.

FWD Group, the insurance arm of Hong Kong billionaire Richard Li’s investment group Pacific Century, is about to close a $400-million acquisition of Vietcombank Cardif Life Insurance.

Vietcombank Cardif Life Insurance is a 45:55 joint venture between state-owned Vietcombank, the country’ largest bank by market capitalization, and French insurance company BNP Paribas Cardif, part of the BNP Paribas banking group.

The deal is part of a bancassurance transaction which could be worth up to $1 billion, with the $400-million amount as an initial payment from the insurer for exclusive rights to sell its products at Vietcombank’s branches, Bloomberg said.

Earlier in September U.K.-based Prudential had signed an agreement with South Korea’s Shinhan Bank Vietnam to distribute its insurance products through its network, while Canada-based Manulife entered a similar agreement with local bank ACB.

Prudential and Manulife are both major players in the Vietnamese life insurance market with a 12.7 percent and 12.8 percent share as of early 2018, according to Ministry of Finance statistics.

Their agreements came just after local lender Sacombank and Japanese insurer Dai-ichi Life Vietnam entered a 20-year exclusive bancassurance contract, one of the longest in the industry to date.

According to Phung Ngoc Khanh, general director of the Ministry of Finance’s Insurance Supervisory Authority (ISA), the country’s insurance market has huge potential due to the low penetration and people’s rising incomes and awareness.

In the first half of this year Vietnam’s insurance industry recorded premiums of VND71.15 trillion ($3.07 billion), up 24.4 percent year-on-year. Last year’s growth was also around 24 percent, according to the ISA.

Last year general insurance accounted for 34.2 percent of premium revenues, and life insurance for 65.8 percent.

There are currently has 30 general insurers, 18 life insurers, 2 reinsurers, and 14 insurance brokers, according to ISA data.

The ISA forecasts of 20 percent growth for the industry this year, with the bancassurance channel growing by 30-40 percent.

Vietnam's middle class is expected to double from the current 13 percent to 26 percent of the population by 2026, according to Word Bank statistics updated in April.

The country's percapita income rose 9.6 percent year-on-year to $2,400 in 2018, which was up 39.5 percent from five years earlier, according to the World Bank.

Brand Finance announces top 50 most valuable brands in Việt Nam

The global independent firm of Brand Finance has ranked Viettel, VNPT and Vinamilk among the top three of the 50 most valuable local brands.

The top 10 corporations contributed 68 per cent of the total value, while the bottom 10 contributed two per cent, according to information released at an event held by Mibrand Viet Nam and Brand Finance in Ha Noi on Wednesday.

The brand value of the top 50 firms totalled US$18.9 million, an increase of 9 per cent from the previous ranking in 2017. On the list, the telecommunication industry accounted for 38 per cent, food and beverage 15 per cent, banks 11 per cent, beer 8 per cent, realty 7 per cent, and retail 5 per cent.

Samir Dixit, CEO of Brand Finance Asia – Pacific, said: “A good brand has a great influence on businesses in technology, especially today when everything is connected online and information is shared. Consumers are now very tech-savvy and business should follow their trends or they will be left behind."

“Businesses should not only pay attention to profit. They should also enhance their brand because it is a valuable asset. They must focus on branding or they will be forgotten,” he added.

The ranking from Brand Finance is based on its international standard in which the royalty rate is calculated with reference to the Brand Strength Index (BSI), a competitive benchmarking tool that identifies the strength of each brand in question.

This rate is then supported by a profit margin analysis of comparable companies. Profit margins have been shown to be directly correlated to the royalty rates that brands are able to command.

Lai Tien Manh, CEO of Mibrand Vietnam, said: “Vietnamese brands are on the right track, developing their business, products and customers to compete with others in the world.”

The other companies in the top 10 included Vinhomes, Sabeco, Mobifone, Vietinbank, Vinaphone, BIDV and Petrolimex.

SOEs need solutions to improve business efficiency

As State-owned enterprises (SOEs) have many functions in the local economy, they struggle to fulfil their main task of doing business, so they need solutions to improve business efficiency, according to experts.

The SOEs should continue to play a role as an example in terms of productivity and efficiency and hold a dominant position in the domestic economy.

According to the Central Institute for Economic Management (CIEM), SOEs must be real enterprises. That means they must give priority to production and business efficiency, said Nguyen Dinh Cung, an economic expert and former CIEM Director.

There is still debate over whether State-owned enterprises should be considered instruments to regulate the domestic economy as well as stabilising the macro-economy.

This has caused difficulties for the restructuring and equitisation of SOEs, Cung said.

The efficiency of State capital investment is increasing, but it is still lower than the investment efficiency of other economic sectors. When analysing the profitability and labour efficiency ratios of the SOE sector, experts found that the sector had higher than average ratios but they did not accurately and fully reflect the efficiency of most SOEs because the sector's total profit depends on a few large SOEs operating in low-competition industries, such as mining, telecommunications and energy, Pham Duc Trung, head of CIEM’s Enterprise Innovation and Development Department told Dau tu (Investment) newspaper.

In comparison with highly competitive industries, like trade, construction and manufacturing, the performance of SOEs is lower than that of enterprises in other sectors. Many SOEs have not met requirements of financial security with high debt and they are likely to collapse when facing a poor business environment.

"Competitive pressure has revealed limitations in the business of SOEs," Trung said.

The SOEs can only compete when they are given autonomy to do business according to permitted business activities. But so far, the SOEs do not have complete autonomy, Cung said.

The Government has asked the Ministry of Planning and Investment to amend and supplement Decision 58/2016/QD-TTg on criteria for classification of State enterprises and State-invested enterprises and the list of State-owned enterprises under restructure in the 2016-20 period.

The goal of the amendment is to separate key economic sectors and public sectors from the sectors that should mobilise investment capital from society and determine a reasonable percentage of state ownership in enterprises to attract foreign investors and really change corporate governance.

The Government also requires separating production and supply of public products and services and products and services for social security from production and business activities for profit of enterprises.

According to the CIEM report, at present, the SOEs dominate in many sectors.

In the telecommunications industry, Viettel, VNPT, MobiFone have occupied large market shares, with rates of 51.5 per cent, 28.4 per cent and 12.7 per cent, respectively. Viettel accounted for 60 per cent of the telecom industry revenue in 2018, with VND234 trillion (US$10.2 billion).

In the banking sector, in 2018, State-owned commercial banks accounted for 44 per cent of total assets, 25 per cent of total charter capital, 48 per cent of the capital mobilisation market and 50 per cent of the lending market in the credit organisation system.

Meanwhile, power plants belonging to State-owned corporations such as EVN, PVN and TKV accounted for about 87 per cent of the electricity generation market.

In the mining industry, State-owned enterprises produced 97 per cent of clean coal and directly exploited all output of crude oil or joined with partners to refine all of them.

The SOE sector has more efficiency in operations when the efficiency of State capital investment at SOEs is gradually improved. The percentage of SOEs that suffered losses decreased to 15.4 per cent in 2017 from the average rate of 17.2 per cent in the period of 2011-15, Trung said.

But these figures have not convinced experts that the sector with strong development has contributed nearly 30 per cent to the national GDP growth, especially when comparing the SOE sector with businesses of other sectors.

$7.6 million mechanical engineering factory opens in Vung Ang

A factory manufacturing mechanical products, machinery and spare parts was inaugurated at Phu Vinh Industrial Park inside Vung Ang Economic Zone in the central province of Ha Tinh on Sunday.

Financed by UP Ha Tinh Co, the US$7.6-million factory is designed to produce 1,800 steel mills and rollers each year, along with 100 products of conveyer belt rollers, 500 tonnes of wear-resistant plates, and 800 tonnes of mechanical products per year.

In his speech at the opening ceremony, chairman of the provincial People's Committee Duong Tat Thang praised the investor’s efforts in completing the factory in line with its schedule.

The chairman described the factory’s operation as one of the starting points for the development of supporting industries in Vung Ang Economic Zone, saying that the plant will also help attract more domestic and foreign enterprises to come and survey investment opportunities in the zone.

Local authorities will continue to create the most favourable conditions for the investor and others in implementing their projects in the locality, he said.

The central province has set a target of luring 150 projects with total registered capital of about $2.5 billion by the end of this year, according to the committee.

The locality is now home to 1,183 projects, 1,108 of which were financed by domestic businesses with a total capital of more than VND107 trillion ($4.6 billion) while the remainder, worth more than $12 billion, were funded by foreign companies.

To date, 17 countries and territories have pumped investments into the province including Japan, South Korea, mainland China, Taiwan, Singapore, Hong Kong, Germany, the UK and the US.

Trà Vinh reports surge in tourist numbers

The Cửu Long (Mekong) Delta province of Trà Vinh has received 765,400 visitors so far this year, an increase of 66.5 per cent year-on-year.

They include more than 27,300 foreigners.

Tourism revenues were estimated at nearly VNĐ280 billion (US$12 million), an increase of more than VNĐ107 billion ($4.6 million).

Analysts say the province has huge tourism potential but failed to capitalise on it due to poor services and failure to develop or market them.

It has a long coastline stretching 65km along the East Sea, some 140 Khmer pagodas, renowned architectural and historical relics, and intangible cultural heritages.

Trà Vinh is known as a green city with hundreds of trees that are more than a century old.

Dương Hoàng Sum, director of the province's Department of Culture, Sports and Tourism, said a number of efforts had been made to develop tourism such as offering incentives to investors and upgrading
infrastructure and facilities.

“The province has set itself the goal of developing tourism as one of its key sectors.”

It would focus on developing Duyên Hải Town and Cầu Kè and Trà Cú districts as its three main tourism destinations, and turn the Bà Om Pond, a cultural relic site, into a national tourist site.

It was soliciting investment in some eco-tourism projects in Ba Động Beach and Duyên Hải Town.

This year, it planned to spend around VNĐ14 billion ($603,000) on tourism marketing and promotion.

Last year, it had started building a Khmer culture and tourism village at a cost of nearly VNĐ26 billion ($1.1 million), with VNĐ8 billion ($344,700) coming from the Government’s coffers and the rest from private
investors.

On September 9, the Cồn Chim community tourism site was launched in Châu Thành District’s Hòa Minh Commune.

“We are also enhancing links with HCM City and provinces in the delta to boost our tourism industry.”

By 2025, Trà Vinh hopes to welcome 2.5 million tourists a year, including 85,000 foreigners, and earn VNĐ1.6 trillion ($68.9 million) in revenues.

Kiên Giang increases rice output

 

A large-scale rice field of the Kênh 4A Co-operative in Kiên Giang Province.

 

The Cửu Long (Mekong) Delta province of Kiên Giang, the country’s largest rice producer, is expected to produce 4.3 million tonnes of paddy this year, up more than 35,200 tonnes against last 

year, according to its Department of Agriculture and Rural Development.

For the ongoing summer – autumn crop, the province has planted more than 290,000ha of rice, up about 9,000ha compared to the province’s target. The rate of certified rice seeds accounts for more than 77
per cent of the crop’s total area.

The ongoing harvest is expected to end in late September, with an additional 1.5 million tonnes of paddy.

Đỗ Minh Nhựt, deputy director of the department, said the yield had met the province’s target, but inclement weather conditions and disease had affected output.

Heavy rains and whirlwinds flattened more than 17,470ha of rice which had nearly ripened, mostly in Tân Hiệp and Giồng Riềng districts.

Disease from brownplant hoppers during prolonged hot weather affected more than 57,230ha of rice.

The rate of high quality rice varieties accounts for 72 per cent of the crop’s total area, according to the department. The rice varieties are mostly OM5451, Đài Thơm 8, OM4900 and OM 6976.

The province has developed 17 large-scale rice fields on a total of 3,215ha.

Many companies are working with farmers to implement large-scale rice fields under the Vietnamese Good Agricultural Practices (VietGAP).

The province’s Co-operative Alliance is working with companies to produce organic rice. In July, the alliance signed an agreement with the Long An Organic Agriculture Company Limited to implement an
organic rice production chain.

Under the agreement, the company will supply material inputs and guarantee outlets for co-operatives to plant rice on 20,000ha.

The company will also provide techniques for growing organic rice to co-operative members.

The province has about 92,000ha of rice fields in which rice is grown in the rainy season and shrimp are bred in the dry season, according to the department. Few chemicals are used for the rice and shrimp
breeding models.

In the province’s U Minh Thượng area, farmers have been shifting to organic standards for the rice-shrimp model.

The U Minh Thượng area has 80,000ha of fields using the rice-shrimp farming model.

Agribusinesses must innovate to compete internationally

Agricultural businesses are facing increasing international competition and must use science, technology and innovation to improve their productivity and competitiveness, experts said yesterday
at a workshop in the city.

David Monck, innovation facilitator at Australia’s Commonwealth Scientific and Industrial Research Organisation, said that unlocking results from publicly funded research for innovation that delivers economic, social and environmental benefits was a challenge facing agricultural innovation systems around the world.

Speaking at the “Unlocking Innovations in Agriculture for the Private Sector” workshop, Monck said that publicly funded agriculture and food research outputs required “Science Commercialisation Partnership” approaches to fit the diverse nature of the agri-food industry.

These approaches ranged from traditional technology transfer models applied to agribusiness to more collaborative partnerships with a variety of agri-food industry and broader system actors. These
approaches were being implemented globally with varying degrees of success in different contexts.

He said that it was important to determine what works for the agriculture and food sector in Việt Nam and how to leverage it to enhance innovation capacity. “It is key to build an agricultural ecosystem applying a digital base to support the competitiveness of Vietnamese agriculture.”

"The agriculture and food sector plays a critical role in achieving food and nutrition security, poverty reduction and environmental sustainability," he noted.

Shaun Fitzgerald, consul for economics and politics at the Australian Consulate in HCM City, said the workshop aimed to identify innovation challenges affecting the competitiveness of the agricultural industry.

Phạm Đức Nghiêm, deputy director general for the National Agency for Technology, Entrepreneurship and Commercialisation Development, said that opportunities for research to address these challenges
would also be discussed.

Such opportunities would be explored in collaboration with appropriate research expertise to develop a solution for industry association members, he added.

Australia has a successful history of supporting public-private partnership models to enhance research activity in agriculture and increase business competitiveness. More than AU$3.3 billion has been
invested in agricultural innovation by public and private sectors.

Việt Nam and Australia have been partners in innovation for more than 25 years, with research programmes spanning agriculture, water management, disaster resilience and space science.

One of these, Aus4Innovation, helps Việt Nam develop a national innovation system and pilot new models in areas where Australia has experience and advantages.

The programme will support Việt Nam’s most important industries, including agriculture and production, as they modernise and embrace opportunities of the Industry 4.0 era that will ensure future productivity
and prosperity for the country.

As part of the Aus4Innovation programme, the Science Commercialisation Partnership will support a number of innovation partnerships in agriculture and food. Aus4Innovation is delivered through Australia’s Commonwealth Scientific and Industrial Research Organisation.

According to experts, the next wave of digital technologies has the potential to transform Việt Nam into Asia’s next high-performing economy and to raise living standards over the coming decades. But to
sustain high growth, Việt Nam will need to overcome substantial challenges. The workforce needs to upskill, especially as jobs become automated across agriculture and manufacturing sectors.

The event was held by the Association of Food Transparency, Australia’s Commonwealth Scientific and Industrial Research Organisation and the Department of Foreign Affairs and Trade of Australia.

HCM City could become logistics workforce training hub

Developing HCM City into a supplier of high-quality human and technological resources for the logistics industry was the subject of a recent conference held in the city organised by the HCM City 

Department of Industry and Trade in coordination with the Việt Nam Logistics Research and Development Institute.

Speaking at the event titled “Project for Development of the Logistics Sector in HCM City until 2025, with a vision to 2030”, Hoàng Minh Trí, a former head of the HCM City Institute for Research and
Development, said the city should also become a hub for logistics workforce training for the Southern Focal Economic Zone since it has many top universities, hi-tech parks and research laboratories.

To turn the city into a logistics hub would require a lot of land and a large workforce, which would worsen the congestion plaguing it, he said.

Besides, this was not envisaged in its master plan for economic development approved by the Government in 2010, he pointed out.

The city planned to develop clean industries which do not harm the environment, and use advanced technologies which do not requires a large workforce, he said.

Overloaded infrastructure

HCM City has two major infrastructure facilities, Tân Sơn Nhất International Airport and Cát Lái port, both overstretched.

Tân Sơn Nhất is crowded both inside and outside and any increase in goods transport or logistics services would make these traffic problems even worse, raising transportation costs.

Construction of a flyover to ease traffic outside the airport cost over US$10 million but it would require 10 times that amount to clear the congestion at Cát Lái.

Furthermore, traffic congestion and pollution affect people’s lives and have a negative impact on the efforts to attract foreign investment.

For these reasons, HCM City should be developed into a human resource hub for the Southern Focal Economic Zone, supplying labour for the Cái Mép – Thị Vải Port Complex (in Bà Rịa – Vũng Tàu
Province) and preparing to do the same for the proposed Long Thành International Airport in Đồng Nai Province, Trí said.

Once construction of Beltway Nos 3 and 4 and the Bến Lức – Long Thành – Dầu Giây Highway is completed, goods from the Mekong Delta could be directly transported to Long Thành International Airport
and the Cái Mép – Thị Vải Port Complex bypassing HCM City, he added.

EVFTA provides Ben Tre with great chances to reach EU markets

With its strength in tourism and farm produce export, the Mekong Delta province of Ben Tre boast great potential to enjoy benefits from the EU-Vietnam Free Trade Agreement (EVFTA), said Deputy Foreign Minister Bui Thanh Son.

At a conference on September 27 to discuss economic partnership between Ben Tre and Europe, Son said that Ben Tre is one of the localities with high development index, adding that Ben Tre ranked first in the Provincial Governance and Public Administration Performance Index (PAPI) and fourth in competitiveness index in 2018.

This is a foundation for the province to promote international economic integration in the future, he said.

Regarding the Vietnam-EU partnership, Son said that the EU is the fourth biggest trade partner and second largest export market of Vietnam. Two-way trade rose about 15-20 percent per year, while EU members’ investment in Vietnam reached 25 billion USD with more than 2,200 projects.

The signing of the EVFTA and EU-Vietnam Investment Protection Agreement (EVIPA) is expected to open up great chances for the two sides to promote partnership, he stressed.

Meanwhile, Secretary of the Ben Tre Party Committee Phan Van Mai said that the province holds advantages in processing and exporting products from coconuts, fruits and seafood. Therefore, with the EVFTA, local products will have chances to access the promising EU market.

Mai affirmed that Ben Tre considers foreign-invested firms as an important economic sector and always works to protect the rights and interests of foreign investors.

The province prioritises environmental-friendly projects with high technology and added value and connection with the global production and supply chains, he said.

The official also expressed his hope that EU member countries would create favourable conditions for Ben Tre products to reach their markets. Ben Tre welcomes EU businesses to seek partnership opportunities in the province, he stated.

Jean Jacques Bouflet, Vice President of the European Chamber of Commerce in Vietnam (EuroCham), said that Vietnam should make more efforts to implement laws of the EU to ensure its products meet requirements in the market.

Vietnam and Ben Tre in particular should improve the legal environment to attract more European investors, while simplifying administrative procedures, he suggested.

EuroCham and its members are willing to share technical and business experiences with Ben Tre to help the province’s products satisfy requirements in the EU markets.

On the occasion, Ben Tre also introduced to participating firms its five promising sectors – seafood, coconut processing, fruit, tourism and industry./.

Mekong Delta develops beef, dairy farming

Many provinces in the Mekong Delta have developed dairy and beef farming since it provides farmers with an additional income and benefits from local agricultural by-products.

The delta, the country’s largest rice producer, produces large quantities of by-products, including rice straw for feeding cows.

In Tra Vinh, the province Department of Agriculture and Rural Development is encouraging farmers to breed cattle for meat and calves this year since there are huge volumes of agricultural by-products available locally and beef prices are high.

The price of beef cattle on the hoof is 180,000 – 190,000 VND (7- 8 USD) a kilogramme. At these prices, farmers earn a profit of 50 percent within one year.

Nguyen Van Son in Long Son commune in the province’s Cau Ngang district has stopped breeding pigs because of volatile pork prices and disease outbreaks and instead has four heads of cattle.

At current prices, he is expected to earn 7 million VND (300 USD) per animal.

According to Nguyen Ngoc Hai, deputy director of the department, the province produces large quantities of by-products like rice straw and peanut and corn plants.

It has large tracts of lands which are not suitable for growing rice or other crops but can be used for growing grass for feeding cattle.

Tra Vinh has more than 200,000 head of cattle, 20 percent more than a year ago.

In Tien Giang province, cattle breeding has developed in coastal districts like Cho Gao, Go Cong Dong, Go Cong Tay, and Tan Phu Dong where farming has been impacted by climate change.

Farmers in these coastal districts have also adopted the garden – pond – animal pen model to breed cattle and fish and grow crops on their land.

The province has nearly 119,000 head of cattle which are an important source of income for farmers and help mitigate rural poverty.

The delta had 748,000 cows last year, an increase of 21,600 from 2017, according to the General Statistics Office.

The delta provinces have undertaken several projects to breed cattle for meat, milk and calves.

In Long An province, the provincial People's Committee has decided that rice, dragon fruit, vegetables, and beef will be the key products for using hi-tech techniques.

It seeks to set up a hi-tech cattle breeding area to raise more than 5,000 head for beef in Duc Hoa and Duc Hue districts by next year.

The districts will establish at least 10 co-operative groups and co-operatives with a total of 300 household members to raise beef cattle using hi-tech farming techniques.

The province has established 10 hi-tech beef farming models based on Vietnamese good animal husbandry practices (VietGAHP) standards.

According to Vo Thanh Quang, director of the Hoa Khanh Dong commune Beef Cattle Breeding Co-operative in Duc Hoa district, the co-operative has 16 members who raise 182 head of cattle.

Local authorities have created favourable conditions for the development of the co-operative, and its members’ awareness of hi-tech husbandry techniques has improved.

But the co-operative faced difficulties including lack of resources and poor management.

Soc Trang province launched a project to raise dairy cattle in 2014, helping farmers improve their incomes, especially Khmer farmers in rural and remote areas.

Participants have been supported with soft loans for building cow sheds and buying grass cutting and milking machines.

They are also taught how to make grass and corn silages, stored rice straws and build bio-gas tanks for treating cattle waste.

There are 124 farmer groups with nearly 3,000 members participating in the project.

Their incomes have increased from 43 million VND (1,850 USD) per household per year in 2014 to 132 million VND (5,680 USD) now.

Song Hang, a participating farmer in My Xuyen district’s Tham Don commune, said thanks to the project, the number and quality of his dairy cattle had increased.

“My family’s income has improved significantly after participating in the project.”

Soc Trang had nearly 9,500 dairy cattle cows as of early this year, mostly in Chau Thanh, My Xuyen, Tran De, and My Tu districts.

Pham Minh Tu, head of the My Tu Animal Health and Animal Husbandry Station, said through the project the district had developed many models related to cattle breeding, including for growing grass, processing food for the animals and protecting the environment./.

Conference promotes Vietnam-Thailand trade

The Business Association of Overseas Vietnamese (BAOOV) and the Business Association of Thai Vietnam (BAOTV) have organised a conference on trade promotion in Thailand’s Udon Thani province from September 27-30.

With more than 800 booths, the event aims to connect Vietnamese businesses at home and abroad, and with Thai partners.

Speaking at the opening ceremony on September 27, Vice President and General Secretary of the Vietnam Fatherland Front Central Committee Hau A Lenh expressed his hope that on the basis of initiatives presented at the conference, programmes will be devised to promote trade and investment links between Vietnam and Thailand.

Deputy Foreign Minister Nguyen Quoc Cuong, who is also head of the State Committee for Overseas Vietnamese Affairs, said the conference helps to tighten solidarity among the Vietnamese community in Thailand and other countries.

The official noted his belief that the conference will encourage Vietnamese enterprises at home and abroad to maximize advantages of foreign countries to promote Vietnamese goods in the international market.

Udon Thani’s Governor Watana Puttichat expressed his hope for a trade route between Vietnam and Thailand via Laos.

Apart from an exhibition, the event features workshops on high-technology, tourism, trade, logistics, the fourth Industrial Revolution, finance and banking. /.

Efforts made to preserve ancient shan tuyet tea trees in Ha Giang

Northern Ha Giang province’s Hoang Su Phi district, the hub of shan tuyet tea trees, which has been recognised as part of the Ancient Tree Heritage of Vietnam, is working hard to preserve and develop the tree and promote the signature product.

Hoang Su Phi currently has over 4,600 hectares of shan tuyet tea farm, with an output of 12,880 tonnes of fresh tea per year worth 115 billion VND.

Of the total area, about 2,000 hectares ancient tea trees with production of more than 6,000 tonnes per year.

Hoang Su Phi has 25 tea processing facilities, including five cooperatives with a capacity of producing 3-5 tonnes per day, creating jobs for many local labourers with high income.

Income of shan tuyet tree farmers is about 50 million VND (2,150 USD) per year, which helps them improve the living conditions.

According to Nguyen Thi Anh Hong, Vice President of the Vietnam Tea Association, the preservation and enhancement of Hoang Su Phi tea trees and the building trademark for Hoang Su Phi shan tuyet tea products.

She underlined the need of communication work to raise locals’ awareness of protecting and developing the trees.

Currently, 1,470 hectares of tea farm in Hoang Su Phi has received organic certification, including 161 hectares meeting EU standards. Hoang Su Phi tea has also got geographical indication. However, the product has yet to be sold in many international markets.

Ly Choi Nhan, head of the district’s Office of Agriculture and Rural Development, over the years, Ha Giang has issued various policies to develop and sell shan tuyet tea product in a sustainable manner.

Hoang Su Phi district has strengthened trade promotion, while focusing on cultivation, harvesting and processing of shan tuyet tea, thus enhancing the value of the product, especially ancient shan tuyet tea, he said.

Nhan said that material tea in the district is highly valued by international experts, but selling activities have still been modest. Therefore, in the future, Hoang Su Phi will continue improving its production and processing methods to enhance the value and trademark of the product.

In August this year, the National Office of Intellectual Property of Vietnam issued certification of geographical indication on Ha Giang shan tuyet tea in six districts and 44 communes, giving a chance for the province to promote the product wider in the global market./.

Vietnam lures over 26 billion USD of FDI in nine months

Foreign investors poured 26.16 billion USD into Vietnam in the first nine months of this year, up 3.1 percent over the same period in 2019, according to the General Statistics Office.

Of the figure, 10.97 billion USD was invested in nearly 2,760 new projects, down 22.3 percent in terms of the capital and up 26.4 percent in the number of projects year on year.

Approximately 4.79 billion USD was pledged to existing projects, equivalent to 86.4 percent of the value from a year ago.

Foreign firms spent 10.4 billion USD on capital contributions and share purchases in Vietnam during the period, representing a year-on-year increase of 82.3 percent.

The nine-month foreign direct investment (FDI) disbursement was estimated at 14.22 billion percent, up 7.3 percent year on year.

Processing and manufacturing remained the most attractive sector to foreign investors during the January-September period, drawing 18.09 billion USD, making up 69.1 percent of the total pledged FDI capital. It was followed by property trading at 2.77 billion USD (10.6 percent of the total) and wholesale and retail at nearly 1.4 billion USD (5.4 percent of the total).

Among the total 109 countries and territories investing in Vietnam in the period, Hong Kong (China) was the largest investor with 5.89 billion USD, followed by the Republic of Korea at 4.62 billion USD and Singapore at 3.77 billion USD. Japan overtook China to rank fourth with a registered capital of 3.067 billion USD.

Hanoi was the largest FDI recipient during the period with 6.15 billion USD, accounting for 23.5 percent of the total, while Ho Chi Minh City and Binh Duong came second and third respectively with 4.52 billion USD (17.3 percent) and 2.52 billion USD (9.6 percent)./.

Kien Giang province increases rice output

The Mekong Delta province of Kien Giang, the country’s largest rice producer, is expected to produce 4.3 million tonnes of paddy this year, up more than 35,200 tonnes against last year, according to its Department of Agriculture and Rural Development.

For the ongoing summer – autumn crop, the province has planted more than 290,000 ha of rice, up about 9,000 ha compared to the province’s target. The rate of certified rice seeds accounts for more than 77 percent of the crop’s total area.

The ongoing harvest is expected to end in late September, with an additional 1.5 million tonnes of paddy.

Do Minh Nhut, deputy director of the department, said the yield had met the province’s target, but inclement weather conditions and disease had affected output.

Heavy rains and whirlwinds flattened more than 17,470 ha of rice which had nearly ripened, mostly in Tan Hiep and Giong Rieng districts.

Disease from brown plant hoppers during prolonged hot weather affected more than 57,230 ha of rice.

The rate of high quality rice varieties accounts for 72 percent of the crop’s total area, according to the department.

The province has developed 17 large-scale rice fields on a total of 3,215 ha.

Many companies are working with farmers to implement large-scale rice fields under the Vietnamese Good Agricultural Practices (VietGAP).

The province’s Cooperative Alliance is working with companies to produce organic rice. In July, the alliance signed an agreement with the Long An Organic Agriculture Company Limited to implement an organic rice production chain.

Under the agreement, the company will supply material inputs and guarantee outlets for co-operatives to plant rice on 20,000 ha. The company will also provide techniques for growing organic rice to cooperative members.

The province has about 92,000 ha of rice fields in which rice is grown in the rainy season and shrimp are bred in the dry season, according to the department. Few chemicals are used for the rice and shrimp breeding models./.

Vietcombank receives three awards by Asiamoney

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has been named the Best Domestic Bank in Vietnam, the Best Bank for SMEs in Vietnam and the Most Outstanding Company in Vietnam – Financial Sector by Asiamoney magazine.

With this, Vietcombank continues affirming its effective performance in domestic market, towards becoming among the top 100 banks in the region, the world’s top 300 banking-financial organisations up to international practices by 2020.

In August, Vietcombank also entered Vietnam’s 50 best listed companies in 2019 by Forbes magazine for the seven consecutive years.

For three consecutive years, Vinamilk led the market in terms of profitability, but this time Vietcombank surpassed the dairy giant, becoming the champion in after-tax profit with a growth rate of 60 percent.

Vietcombank posted the highest pre-tax profit among the Vietnamese banks in the first six months of this year, raking in more than 11.04 trillion VND (474.7 million USD), up 43.1 percent year-on-year.

The figure helped Vietcombank become the first bank in Vietnam to record pre-tax profit exceeding 10 trillion VND in the first half of a year./.

New firms’ registered capital up 34 percent in nine months

Close to 102,300 new enterprises were established in the first nine months of this year with a combined registered capital exceeding 1.29 quadrillion VND (55.47 billion USD), up 5.9 percent and 34 percent, respectively, from a year ago.

The average registered capital per new firm hit a new record high, mounting to 12.6 billion VND (nearly 542,900 USD), according to the Ministry of Planning and Investment’s Agency for Business Registration.

The new firms registered to employ around 929,800 workers, up 13.4 percent year-on-year.

Already-operational firms also registered to add about 1.73 quadrillion VND to their capital, bring total capital injected to the economy over the period to more than 3.02 quadrillion VND.

The agency said there were 27,600 businesses returning to operations, a year-on-year increase of 20.5 percent./.

Viettel Post recognised for good financial management

Viettel Post, a subsidiary of Viettel Corporation, was recognised as one of the top enterprises in terms of financial management capacity on the Viet Nam Stock Exchange in 2019 during an awards ceremony in the capital this week.

The awards were granted by the Viet Nam Chamber of Commerce and Industry (VCCI) and Vietnam Business Forum newspaper, in collaboration with the Institute for Business Studies and Development and the Vietnam Association of Accountants and Auditors (VAA).

This year, public companies from 30 sectors were evaluated and ranked based on 21 indicators related to all aspects of business activities.

Viettel Post, which is one of the few enterprises with over 20 years’ experience in the delivery market, joined the stock exchange from the end of 2018.

In 2019-24, Viettel Post aims to become the No 1 sales enterprise in Viet Nam based on a smart logistics platform. To achieve this, it will continue to expand delivery and logistics services, and further promote the application of technology and an e-commerce platform, as well as increase investment in warehouse infrastructure.

Viettel Post's production and business activities have closely followed the growth plan roadmap. The corporation has been active in digital transform with the new firms MyGo, Vo so and Bang chuyen, which apply the latest technology and innovation in logistics.

Viettel Post plans total revenue of VND6.7 trillion (US$288.5 million) and net profit of VND380.2 billion ($16.3 million) in 2019, both up more than 36 per cent over last year.

Its shares, coded VTP on the Unlisted Public Company Market (UPCoM), are trading around VND130,000 ($5.6) per share.

HAGL opts out of Myanmar project

HAGL, once the leading real estate firm in Vietnam, has sold its largest project stake in Myanmar to compatriot auto firm Truong Hai.

Hoang Anh Gia Lai (HAGL) recently said it has sold its remaining 47.93 percent stake in subsidiary HAGL Land to a subsidiary of Truong Hai Auto (THACO).
HAGL Land’s main asset is the HAGL Myanmar complex, which comprises premium office buildings, a hotel and a mall in the former capital Yangon.

The first phase of the complex is now in operation, while the second one is being constructed by THACO subsidiary Dai Quang Minh, a real estate and construction firm.

The move by HAGL reflects its commitment to agriculture, the main business it has been focusing on in recent years.

Last year, the company invested VND976 billion ($42 million) to buy 5,300 hectares (13,096 acres) of land in Cambodia to grow bananas for export to China.

Its agriculture subsidiary, HAGL Agrico, reported 2018 revenues of VND3.7 trillion ($159 million) and losses of VND659 billion ($28 million) compared to a profit of VND527 billion ($22.7 million) in 2017.

SMEs fail to make use of plentiful assistance in HCM City

A number of organisations in Ho Chi Minh City have provided assistance and consultancy for small and medium-sized enterprises (SMEs) while banks have offered them loans on easy terms but they do not make use of either consultancy or loans, heard a conference in the city on October 3.

Tran Ngoc Liem, Deputy Director of the Vietnam Chamber of Commerce and Industry (VCCI)’s HCM City Branch, said representative offices of central agencies in the city and the VCCI have set up centres to assist SMEs.

Many banks have a dedicated division for providing consultancy and credit to SMEs, he said.

But SMEs do not make use of the centres to learn about policies and laws, or take advantage of support from the banks to get loans, he added.

Tran Thi Lien Phuong, research director at market research company Insight Asia, said the multiplicity of agencies offering assistance causes confusion among SMEs in choosing from them.

The Government should have a single channel providing information about these centres to SMEs and ensure that the consultancy they provide is optimal, she suggested.

Insight Asia’s studies found that many SMEs in the manufacturing sector want an efficient and sustainable production environment to develop their business, she said.

But in its absence, they continue to be small or very small, Phuong noted.

Their weaknesses along with the rapid changes in the global economy make them increasingly vulnerable, she added.

An executive from a city bank said many of SMEs do not have any strategy for getting loans before contacting banks.

They would have warehouses worth billions of VND to mortgage against loans, but built without official approval meaning banks could not accept them, he said.

Some delegates suggested that SMEs could use their contracts with customers and hi-technology production processes as assets to mortgage.

SMEs should have at least 40 percent of owners’ equity capital and not just 20 percent, and they should not be highly leveraged, they warned.

Do Khac Cuong of Microsoft Vietnam said digital transformation could engage SMEs’ customers, empower their employees, transform their products, and optimise their operations.

Lam Dieu Tam Hieu, deputy general director of Kizuna JV Corporation, said many SMEs want to have warehouses or manufacturing facilities at industrial parks, but cannot afford them.

She suggested that property companies should build warehouses with proper infrastructure for SMEs to lease.

This model could save SMEs a lot of money, she added./.