A booth in an exhibition on AI technology in Vietnam

Hanoi and Ho Chi Minh City are standing at the 87th and 95th places, respectively, in the Global Cities Artificial Intelligence (AI) Disruption Index, which was revealed on September 26.

The index was a global study conducted by the US-based Oliver Wyman Forum, which ranked 105 international cities in terms of their preparedness for the broad technological and digital disruption that will be spurred by AI and related technologies.

The cities were ranked based on four key criteria, including the quality of a city’s plan (Vision); a city’s ability to execute on forward-looking plans (Activation); the extent and quality of talent, education, and infrastructure (Asset Base); and how the interplay of Activation and Asset Base are impacting its overall momentum (Trajectory).

Timocine Pervane, an expert of Oliver Wyman Forum, said with high growth rate, and growing skilled workers, Vietnam has a bright prospect and is on the right track towards the AI age.

It is important for the country to take advantage of chances produced by the Fourth Industrial Revolution to bolster its growth, he added.

The 10 leading cities are Singapore, London (the UK), New York and San Francisco (the US), Paris (France), Stockholm (Sweden), Amsterdam (the Netherlands), Boston (the US), Berlin (Germany) and Sydney (Australia).

European cities have an advantage in terms of their ability to implement plans, while cities in the US and Asia are making the greatest strides in catching up with breakthroughs in the age of AI.

However, the index also showed that no city in the world is ready for the disruptions that will be brought on by the age of AI./.

Solutions to help businesses avoid accusations of origin fraud

A circular on "Made in Vietnam" products was expected to help businesses avoid accusations of fraud, said Deputy Minister of Industry and Trade Tran Quoc Khanh at a conference held in Ha Noi on Wednesday.

The event was held to hear opinions from enterprises and associations on the draft circular, which describes how to identify Vietnamese goods and products.

Many products and goods whose accessories are imported from foreign countries and assembled and processed in Viet Nam are sometimes labelled "Made in Vietnam", which has sparked public concern.

Khanh said the Ministry of Industry and Trade (MoIT) in August had completed a draft circular on how to identify Vietnamese-made goods.

MoIT has published the draft publicly and will organise two seminars in Ha Noi and HCM City to collect comments from the public, businesses and relevant ministries before finalising the report and sending it to the Prime Minister. It will then be reviewed again before it is officially issued.

“This circular will not incur costs for enterprises, but help enterprises to more accurately label their products to avoid the risk of alleged fraud of origin, and gradually eliminate the situation of imported goods being disguised as Vietnamese goods," Khanh noted.

Sharing the urgency of the Circular, Tran Thanh Hai, deputy director of MoIT's Import-Export Department, said the quality of many Vietnamese products and goods had risen significantly, creating consumer confidence.

However, this situation has also led to more goods being "disguised" as Vietnamese goods, causing bad competition and pressure on domestic producers.

"This circular not only concerns the labelling of 'made in Vietnam' goods, but more importantly, defines what a Vietnamese product is," Hai said.

He said the circular's most important principle was to lessen the need for administrative procedures for businesses.

The draft will be the basis for creating fair competition for businesses that are diligent in their research, creativity and branding.

Regarding labelling, Tran Thi Thu Huong, director of the Centre for Commercial Document Certification at the Vietnam Chamber of Commerce and Industry (VCCI), pointed out there was already a decree issued by the Government on labels that clearly defined the scope to regulate the matter.

Therefore, it was necessary to consider whether or not this draft circular should be issued or to focus on expanding the existing circular for goods in Viet Nam, Huong suggested.

Over VND9.2 trillion poured into Hoa Binh hydropower plant expansion

The Hoa Binh hydropower plant expansion project is expected to be started in the fourth quarter of 2020 and scheduled to be put into operation in 2023. Currently, related units are rushing to complete the necessary procedures to implement the project.

With a total investment of over VND9.2 trillion (US$395.6 million), the expanded project will include two turbines with a total capacity of 480MW.

Once completed, the plant’s average power is expected to reach 479 million kWh per year, while its electricity mobilisation during peak hours will increase to 264.4 million kWh per year.

The investment aims to raise the national power network’s peak power and maximise utilisation of water discharged from the plant in the flood season for generating power.

It will also help improve frequency modulation capability and stablise the frequency of the national electricity system and reduce the working intensity of available turbines of the plant, thus prolonging the life of equipment and saving maintenance and repair costs.

The Hoa Binh hydro power plant, located in the northern province of Hoa Binh, is the second largest hydropower plant in Vietnam, after the Son La hydro power plant, with an annual electricity output of over 10 billion kWh.

JLL: Delivery to refrigerated lockers may become widespread in urban areas

Refrigerated lockers for food and grocery orders may become common fixtures in urban areas around Vietnam in the future, according to a JLL report released on September 23.

The report noted that the boom in online shopping leads retailers and logistics providers to look for new ways to deliver orders as quickly and efficiently as possible. Parcel lockers or store pick-up options are among the latest delivery options for shoppers.

For store pick-up, shoppers can visit the nearest store for their package after checking out online. For parcel lockers, shoppers will receive a QR or SMS code upon checkout that will open the locker once the parcel is delivered.

Mr. Stephen Wyatt, Country Head of JLL Vietnam, said that the accelerated growth is both good and bad news for retailers, who are in need of better delivery options to tackle the challenges of last mile deliveries from warehouses to homes and offices. “Trying to deliver packages to customers who aren’t home can cause delays on delivery routes, while getting orders to individual addresses often means putting vehicles on the roads before they’re full, raising costs and contributing to city center congestion and air pollution,” he added.

However, although they are a familiar sight in many other countries, lockboxes are not widely available in Vietnam.

According to JLL’s data, the number of apartments in Ho Chi Minh City has increased from 67,200 to 180,000 in the last five years, for growth of 190 per cent growth from 2014 to the second quarter of 2019. “For landlords, providing the convenience of parcel lockers could be an additional perk that attracts commercial and residential tenants, especially as online shopping continues to grow,” the report noted.

A good location for lockers depends on retailers’ customer profiles - how frequently they order and where they live. Mr. Wyatt said this is where big data can provide insight into the most effective locations. What’s key is that customers can pick up the parcel along their usual journey, without a detour. Furthermore, lockers need to be in secure locations with good surveillance to minimize the risk of theft or vandalism.

New residential and mixed-used developments in Vietnam could include a block of lockers, accessible by all residents as well as retailers. Currently, most big packages delivered to residential buildings are left at the door or reception desk. “With hundreds of packages arriving each day for thousands of residents, parcel lockers can minimize the risk of mixing up or losing packages,” he said.

Grade A office space much sought-after

Friendship Tower, a Grade A building in Ho Chi Minh City’s District 1, was officially topped out on August 16 and handover is expected in the first quarter of next year. Located on Le Duan Boulevard, one of Ho Chi Minh City’s most famous and prestigious thoroughfares, and with construction by Coteccons, it has been structurally complete for nine months and meets all safety and quality requirements.

Developed by CZ Slovakia Vietnam, the building provides 21 floors and four basements with a total gross floor area (GFA) of more than 25,000 sq m and offers ideal office space for dynamic Western companies operating in Vietnam and Southeast Asia as well as Vietnamese companies doing international business. “Our hard work and effort have seen construction progress on track for handover in the first quarter of 2020, offering tenants a flexible and modern working environment in a prestigious District 1 location,” said Mr. Nguyen Trong Hung Son, Finance Manager of CZ Slovakia Vietnam. “The on-time topping out is another milestone underlining our commitment to delivering a high-quality office building.”

In Ho Chi Minh City, the Alpha Town Grade A office building, one of two projects from Alpha King Real Estate Development, will open in 2020 and offer a 1,680 sq m floor plate on 35 floors and five basement levels, totaling approximately 72,109 sq m of GFA. In addition to AtlasSpace, which will offer flexible workspace and state-of-the-art facilities, Alpha Town will appeal to a unique collection of tenants considered best-in-class and in a broad range of industries, from brand agencies to financial institutions.

In Hanoi, meanwhile, CapitaLand’s Capital Place, the capital’s first international Grade A office development, announced in July it will be completed in the third quarter of 2020. Located in the commercial area of Ba Dinh district, it will provide approximately 121,000 sq m of GFA in two 37-story towers. Inspired by local legend, the likeness of a dragon was incorporated into its façade and lighting scheme, delivering a striking modern look both day and night.

The premium Japanese office building Leadvisors Tower, developed by LeadvisorSanei Hospitality Holdings, will open in the third quarter of this year. In a prime location on Pham Van Dong Boulevard - Ring Road 3, which is now being expanded into an arterial road to the flourishing new urban area and business district in the west of Hanoi, Leadvisors Tower covers an area of 28,000 sq m. Its total net leasing area (NLA) is approximately 20,000 sq m, with a floor plate ranging from 750 sq m to 970 sq m that suits various leasing requirements for commercial, office, and showroom.

The country’s office market will become extremely vibrant in the future with a variety of Grade A office projects launched. From the second quarter of 2019 to the end of 2021, Ho Chi Minh City’s office market is expected to welcome 14 new office buildings with more than 300,000 sq m, of which half is Grade A offices, according to a CBRE quarterly report released in July. Meanwhile, the Grade A office segment in Hanoi will see many new projects with a total of 260,000 sq m opened this year and next. “Over the past few years, the market has witnessed the opening of several Grade A projects in Hanoi and Ho Chi Minh City and all are sizable projects in prime locations, thus drawing market attention,” Ms. Nguyen Hoai An, Director of CBRE Hanoi, told VET.

According to CBRE, there are 15 and 20 Grade A projects in Ho Chi Minh City and Hanoi, respectively, providing 383,000 sq m NLA and 435,000 sq m. The asset class has enjoyed healthy occupancy in both cities. As at the second quarter of this year, average occupancy in Grade A office buildings in Ho Chi Minh City and Hanoi were 97 per cent and 92 per cent, respectively. Ms. An said the performance of the upscale market and solid demand provide motivation for developers investing in the Grade A segment. “This segment not only attracts local developers but also foreign developers entering and developing projects under international standard,” she added. “While demand, especially from the FDI sector, is still healthy, there is lack of quality space for these high-profile tenants. Moreover, the space from existing projects is gradually being absorbed, so there is potential for new projects entering the market.”

Meanwhile, Alpha King said that there being just 35 Grade A office buildings in Vietnam indicates the complexities of developing to Grade A criteria in super prime locations. Such developments require the best available construction methods and quality and should meet the highest standards of health and safety and sustainability. Mr. Richard Leech, Senior Director, Commercial, at Alpha King, believes this high demand represents potential for the development of the Grade A office segment. “High profile tenants demanding quality workspace that enhances their brand reputation and respect among their peers will attract the best talent,” he noted. “These companies also demand superior property management services in an environmentally-friendly building that ensures the wellness and safety of its employees.” 

According to CBRE, as at the second quarter, the average asking rent for Grade A space in Ho Chi Minh City was $46.7 per sq m per month; a slight increase of 0.9 per cent quarter-on-quarter and 2.9 per cent year-on-year. In Hanoi, asking rents at Grade A buildings in the second quarter rose 5.3 per cent year-on-year, to $26.4 per sq m per month (excluding VAT and service charges). “The Grade A office sector remains an attractive investment asset for property developers, even though capital recovery may take longer than other products such as residential,” Mr. Son said.

From 2020 to 2021, the wave of new supply will help ease pent-up demand for leasing office space in Ho Chi Minh City, according to CBRE. Hence, rental growth in Grade A offices is expected to be only 4 per cent in 2019, compared to 15.8 per cent in 2018, while vacancies will continue to fall slightly, to 4 per cent in 2019. In Hanoi, given healthy demand, rental growth at Grade A buildings is expected to be 4 per cent year-on-year this year. “The outlook for the Grade A segment has improved significantly in recent years,” said Ms. An. “While stronger demand is evidenced in Ho Chi Minh City, Hanoi is also expected to perform strongly, especially Grade A.”

Vietnam’s commercial real estate market has been developing for almost 20 years now, with certain trends catching up with what’s happening in the rest of the region, so the main challenges lay in accelerating urbanization in the two cities of Ho Chi Minh City and Hanoi, leading to a shift in commercial hubs and certain older buildings risking becoming obsolete due to an inability to accommodate the ever-changing requirements of occupiers.

Ms. An pointed out that international office occupiers would typically require column-free floor plates, raised floors, abundant parking, high security, and wellness facilities on site, among other things. “However, the number of buildings that can accommodate such requirements is only limited to recently-completed buildings, putting pressure on older buildings to undergo renovation and offer competitive rental policies,” she added.

Moreover, in the CBRE report released in July, the office market revealed a shortage of Grade A office supply. For example, Hanoi’s CBD welcomed its first Grade A project in five years. Ms. An explained that due to the nature of an emerging market, Vietnam has witnessed major fluctuations in supply volumes, leading to a situation of high supply for a certain period of time and then an absence of supply in another period.

First emerging in 2015, the office market has witnessed the strong expansion of the co-working, or flexible workspace, model in both Hanoi and Ho Chi Minh City. Many analysts have said that this is the trend in Vietnam’s real estate market and will put pressure on the Grade A office segment. But, conversely, co-working space operators are one of the target tenants for Grade A office space.

The Executive Center, a premium flexible workspace provider in Asia-Pacific, became the first tenant at Friendship Tower, securing 1,442 sq m over two floors for their second location in Ho Chi Minh City. Mr. Son said the growth of the co-working space sector actually benefits Grade A office buildings like Friendship Tower and complements office space solutions.

Alpha Town has also leased a sizeable portion to Atlas Work Space, who will then lease to a specific type of flexible workspace user while at the same time providing Alpha Town occupants with an array of facilities, from food and beverage outlets to fitness centers and spas. “We believe that there is both a market for co-working and traditional office space, and the two together will only enhance the experience for the office space user and attract the country’s top companies and talent to work at Alpha Town,” Mr. Leech said.

According to CBRE, there are also some changes in the locational strategy of co-working providers to target different types of customers and tenants. Some co-working providers have chosen Grade A or new Grade B buildings as new venues targeting corporate clients, to whom they provide workspace solutions and more flexible leasing options. However, tenants in this segment also require professional buildings and management, leading to an expansion of co-working chains in office buildings. Thus, co-working space providers have now become one of the major sources of demand in the office market for both the Grade A and Grade B segments, benefiting the traditional office market.

MoU signed to promote Binh Thuan tourism

Vietnamese developer the Novaland Group struck a strategic partnership on September 22 with The Professional Golfers’ Association of America (The PGA of America) and the International Management Group (IMG), a leading global corporation specializing in sports, events, media and fashion, within the framework of south-central Binh Thuan province’s “Investment Promotion Conference 2019”.

Novaland also signed a strategic partnership with French multinational hospitality group Accor, which owns famous brands such as Sofitel, Pullman, Mercure, and Ibis.

At the conference, entitled “Potential Connection - Sustainable Growth”, Binh Thuan focused on directly encouraging strategic enterprises and investors with strong reputations and capabilities to invest in key projects. Calling for investment in infrastructure projects for nation-level sea tourism and sport centers was a top priority.

Together with the national tourism development strategy, as well as the group’s second phase of its development strategy, Novaland has been gradually expanding leisure-tourism property products in tourism destinations with great potential, such as Can Tho, Ba Ria Vung Tau, Phan Thiet in Binh Thuan, and Cam Ranh in Khanh Hoa.

The group strives to cooperate with foreign and domestic consultants and professional operators to create “perfect destinations” for tourists, with the aim of transforming these destinations into tourism-leisure centers and contributing to Vietnam’s mark on the world tourism map.

In Binh Thuan, Novaland has introduced the NovaWorld Phan Thiet entertainment and tourism complex on up to 1,000ha. The project, which includes second home products like townhouses, villas, and shophouses, will build diverse, world-class amenities, including a 220-ha sports complex with a 36-hole international-standard golf course, a 25-ha theme park and water park, a 16-ha beach park, and a commercial center with a conference hall, a food court, and family entertainment area.

The signing with The PGA of America aims to bring a new standard in golf academies and golf courses to Vietnam. The PGA and Novaland will work together to develop world-class golf academies and junior golf programs aimed at producing the champion golfers of the future. The PGA of America will also endorse the exclusive branding of Novaland golf properties in Vietnam.

At the same time, Novaland has partnered with IMG to bring a series of international golf tournaments, featuring some of the world’s best golfers, to Binh Thuan.

“Vietnam is one of the fastest-growing golf tourism markets in the world, and we’re seeing the game of golf utilized as a key vehicle for that growth,” said Mr. Arjun Chowdri, Chief Innovation Officer of The PGA of America. “We are incredibly excited to partner with such a well-renowned company in Novaland, which is committed to the development of the game and will help us position The PGA of America and PGA Professionals at the forefront of that growth.”

“Novaland believes that Binh Thuan will attract many enterprises and will become a desirable tourist destination in both the region and the world,” said Mr. Bui Xuan Huy, CEO of Novaland.

Novaland also signed a cooperation agreement with Accor to manage a series of hotels with a scale of approximately 1,500 rooms located in hospitality properties invested by Novaland in Binh Thuan and Ba Ria Vung Tau. The hotel chain, with the brands Novotel, Mövenpick, MGallery, and Mercure, will offer a comfortable resort experience to domestic and international travelers.

Digitalisation drives efficiency and decision making in wind energy

Digitalisation is already playing a major role in the growth of wind energy, but it can still drive further improvements in operational efficiency, decision making, and cost efficiency – if it can overcome concerns around data sharing.

This is the key finding of the report Digitalisation and the Future of the Wind Energy Industry published yesterday by DNV GL, a global quality assurance and risk management company operating in more than 100 countries.

Based on a survey of almost 2,000 engineers and senior executives from across the energy sector, the report assesses the current progress of digitalisation and identifies the top priorities for and barriers to further growth.

The wind industry is widely expected to become an ever-greater contributor to the world’s future energy mix. DNV GL’s Energy Transition Outlook report forecasts a 15-fold escalation in wind-powered generation from 1.1PWh in 2018 to 17PWh in 2050.

In terms of installed electricity generation capacity, the amount of wind energy will increase more than eight times by 2050 to 5TW globally.

Digital technologies have been one of the key reasons behind wind power’s growth to date. DNV GL’s report reveals that digitalisation will also be vital in achieving the wind energy industry’s ambitious future growth targets.

In particular, the industry considers improving operational efficiency (identified by 52 per cent of respondents), decision making (42 per cent), and cost efficiency (40 per cent) as the top priorities for further digitalisation.

However, the report also highlights that the benefits of digitalisation could be threatened by issues over sharing data and limited willingness to provide more transparency.

Such doubts are particularly felt in the offshore sector where concerns over data sharing (37 per cent of respondents) and inability to access data (25 per cent) were cited as the biggest barriers to further digitalisation.

Interestingly, barriers related to data were a greater concern in the wind industry than in other parts of the energy sector. Other potential barriers identified include digital skills gaps within the industry and organisations focusing on other priorities.

“The wind industry already uses vast amounts of data to improve performance, for example exploiting wind farm SCADA data to enable a predictive approach by anticipating faults and planning maintenance in order to ensure greater up-time,” said Lucy Craig, vice president of Technology and Innovation at DNV GL – Energy.

“However, this increased reliance on data brings new challenges and the wind industry faces conflicting priorities when it comes to data sharing. While the benefits to sharing are clear, there is also an essential requirement to protect competitive advantage and intellectual property. Finding the balance will allow the wind industry to unlock a bright digital future,” Craig noted.

1,000 factories at VSIP to switch to solar energy

More than 1,000 factories of Vietnam Singapore Industrial Parks (VSIP) will start using solar energy under an agreement signed on September 24 with Sembcorp Smart Energy Solutions Vietnam, another wholly-owned subsidiary of Sembcorp Industries and domestic Becamex Group.

This agreement sets up a joint venture company that will introduce a new generation of sustainable smart energy solutions to Vietnam.

For a start, industrial tenants will be offered renewable energy generated by solar systems installed on the rooftops of their factories.

According to Koh Chiap Khiong, head of Singapore, Southeast Asia & China (Energy), Sembcorp Industries, the company believed the solutions will enable it to provide greater added value to partners and customers of VSIP and Becamex by helping them manage their carbon emissions and achieve cost savings at the same time.

“As an integrated energy and urban partner, Sembcorp’s green energy offering is in line with the Vietnamese government’s renewable energy goals and the company’s commitment to supporting a low-carbon and circular economy. It is also testament to our vision to be a leading independent renewable energy player,” Khiong said.

Nguyen Van Hung, chairman of Becamex and co-chairman of VSIP Group, affirmed that VSIP and Becamex integrated developments will continue to drive investments for the long term.

“Environmentally friendly features that enhance the sustainability of the projects will help to maximise their overall value to the economy and benefit the communities around us with a cleaner environment. On that front, we are happy to collaborate with Sembcorp, to bring such sustainable energy solutions to Vietnam and our properties,” Hung said.

Leveraging the wide network of industrial properties owned by Becamex and Sembcorp, more than 1,000 tenants may potentially be operating on green power, thereby supporting these tenants’ environmental sustainability goals. The cost savings in switching to renewable energy would also enhance tenants’ competitiveness.

The solar energy systems would be backed by a high-tech digital platform that is connected to Sembcorp’s Solar Performance Monitoring Centre housed in Singapore.

Using real-time tracking devices, this centralised system remotely monitors the output of every single string of rooftop solar system installed at the integrated developments. The platform provides enhanced visibility over operations and enables maintenance and troubleshooting teams to be swiftly deployed when needed – making the operations of solar assets more robust and reliable.

A small-scale rooftop solar farm has been integrated into the building structure of VSIP’s administrative office in Binh Duong province.

The solar panels installed are expected to provide renewable energy and lower the carbon footprint for the building. There are plans underway to develop more rooftop solar facilities in other VSIP office buildings.

At the master plan level, VSIP Binh Duong was a recipient of the Greentech Award and was the first industrial park in Vietnam to attain ISO 14001:2004 standard in 2010.

Most recently, VSIP developments in Bac Ninh and Hai Duong received Green Industrial Park certifications presented by Vietnam Association for Environmental Economics (VIASEE).

VietnamPlas 2019 returns to Ho Chi Minh City on November 3-6

Vietnam International Plastics & Rubber Industry Exhibition (VietnamPlas) 2019, one of the biggest events in the plastic and rubber industry, expects more than 500 exhibitors from 18 countries across the world.

The event is held by the Vietnam National Trade Fair & Advertising Company (VINEXAD) under the Ministry of Industry and Trade, in co-operation with Yorkers Exhibition Service Vietnam. VietnamPlas will take place on the four days between October 3 and 6 at Saigon Exhibition and Convention Centre (SECC).

On display will be products and services from more than 520 suppliers from 18 countries and territories, including Australia, China, Belgium, Japan, and the Republic of Korea, among others. International exhibitors are represented at this exhibition and will present their latest innovations, technologies, and machinery in the industry. They will combine a variety of plastic and rubber products and machinery, such as blow moulding machines, injection moulding equipment, plastic cutting machines, rubber blending machines, as well as chemicals and raw materials.

Besides, exhibitors and visitors will have the opportunity to meet with experts and professionals who are willing to share in-depth information concerning all aspects of the plastics and rubber industry, from technical development, procedures, and techniques to future trends.

As an annual event, VietnamPlas is a reputed industrial event in the world, proved by the long series of international industry associations, such as the Plastics Export Promotion Council from India and the Taiwan Association of Machinery Industry (TAMI), bringing delegations of enterprises to join the event.

Local authorities and associations have supported VietnamPlas to become a leading B2B platform to showcase the most modern technologies and machinery in the rubber and plastic sector.

In the framework of the trade fair and exhibition, the organiser also reserved space for numerous seminars to discuss topics like the first step to plastic 4.0 as well as the technology and the future of rubber and the circular economy.

Hanoi unlocks consumption potential of rural areas, industrial zones

The capital city of Hanoi’s industry and trade sector has developed models to supply “made-in-Vietnam” products to rural areas, as well as industrial and processing zones which employ millions of labourers.

Nguyen Thi Na, a worker at the Thach That Industrial Park in the capital city of outskirt district of the same name, said she had frequently purchased foreign products as she assumed they were better than those locally-made.

“However, since I visited markets exclusively for made-in-Vietnam products, I have realised that they have diversified packaging and their quality is not lower than imported goods. More importantly, they are sold at reasonable prices and with clear origins. Therefore, I now prefer Vietnamese goods,” she said.

According to Tran Thi Phuong Lan, Deputy Director of the municipal Department of Industry and Trade, over the past years, Hanoi has integrated activities introducing Vietnamese goods at the city’s industrial and processing zones into the market stabilisation programme to help labourers, especially low-wage workers, access good quality products at affordable prices.

During the 2009-2019 period, the municipal Department of Industry and Trade has teamed up with agencies, localities and management boards of industrial and processing zones to instruct businesses to organise about 3,200 mobile goods-selling vehicles, 254 fairs and other promotion activities.

Besides, they have provided products for canteens of the industrial and processing zones, and mountainous and remote areas in Ba Vi, Quoc Oai, Thach That, My Duc, Son Tay and Phuc Tho districts.

Vu Thi Hau, Vice President of the Vietnam Association of Retailers (VRA), said fairs in rural areas and industrial and processing zones have helped retailers promote their brands and tap the potential of the rural market.

These programmes have also connected firms with consumers, and helped enterprises explore the demand and tastes of local consumers to adjust their production strategies and roll out suitable distribution channels, thus improving their market shares in rural areas, she added.

Through such activities, local consumers have changed their consumption habits towards made-in-Vietnam products, Hau said.

However, experts pointed out that promotion activities are still held seasonally, and mobile goods-selling vehicles have failed to attract consumers due to undiversified products.

Moreover, few retailers are interested in the programme on introducing Vietnamese products to rural areas.

Nguyen Thi Hai Thanh, Deputy General Director of the Hanoi Trade Joint Stock Corporation (Hapro), explained that businesses have not earned much through the programme, and some districts and management boards of the industrial and processing zones have shown little interest in the mobile goods-selling vehicles and fairs.

Given this, Tran Thi Phuong Lan, Deputy Director of the municipal Department of Industry and Trade, suggested trade unions and management boards of industrial and processing zones work with businesses in communications and help them with venues and tax.

Participating businesses want to receive the State’s support in transportation costs and marketing to raise their competitiveness against foreign investors, she noted.

Echoing Lan’s view, VRA President Dinh Thi My Loan also suggested the Ministry of Industry and Trade and local authorities put forth a long-term, synchronous and flexible strategy to encourage local firms to promote their products in rural areas.

The municipal Department of Industry and Trade said to further implement the campaign “Vietnamese prioritise using Vietnamese products,” it will work with relevant agencies to review policies on land, planning, science-technology, loans, brand building and trade promotion.

The Department of Industry and Trade will propose authorised agencies facilitate production expansion, market survey, technological innovation, brand building and network development of businesses, while helping them engage in the market stabilisation programme.

It will also push ahead with the development of retail networks in Hanoi’s outskirt localities, with stable venues./. 

Da Nang focuses on turning tourism into spearhead economic sector

Together with hi-tech industry and sea-based economy, the central city of Da Nang has worked to make tourism one of its spearhead economic sectors, as set by a Politburo resolution.

According to Vo Cong Tri, Deputy Secretary of the municipal Party Committee, to this end, Da Nang will continue strengthening communications to enhance public awareness of preserving a good tourism environment and boosting the sector’s sustainable growth.

The city will hold training courses on tourism for the community, while encouraging locals and tourists to implement the Code of Conduct on tourism.

Meanwhile, the city will inspect and handle violations in tourism activities, while ensuring security and safety for tourists and protecting the sea environment from pollution.

The city will create a favourable investment environment, while calling for investment to sea-based tourism clusters, new beaches and high quality resorts and eco-tourism, thus enhancing the municipal sector’s competitiveness.

At the same time, the city will also expand the eco-tourism area in the west and the National Tourism Site of Son Tra Peninsula, along with investing in developing destinations along waterway routes of the city.

Together with encouraging the increase of international flights to Da Nang, the city will focus on expanding meetings, incentives, conferences, and exhibitions (MICE) tourism by coordinating with ministries, sectors, enterprises, international organisations and diplomatic agencies to hold major events in Da Nang.

The city has worked with Quang Nam, Thua Thien-Hue and Hanoi to promote tourism connectivity. Last year, it proposed preferential policies to the Government for tourism development in the four localities and the establishment of tourism representative offices in major marketslike the Republic of Korea, Thailand, China and Russia.

Da Nang has also encouraged and supported organisations and individuals from various economic sectors to engage in developing tourism value chains.

The city boasts various advantages for tourism, from beautiful beaches and sea, to forest, river and lake ecosystems, but it is essential Da Nang finds its own unique tourism products.

Covering 1,255sq.km, the city is cited as an entrance to four World Heritage areas including the former royal capital city of Hue, Hoi An ancient city and My Son Sanctuary in Quang Nam province and UNESCO-recognised Phong Nha-Ke Bang in Quang Binh Province.

Da Nang has a total of 90 kilometres of coastline and dozens of beaches, including stunning My Khe. Meanwhile, the city’s Ngu Hanh Son district is renowned as a centre for stone art, with Non Nuoc craft village stands at the foot of the Marble Mountain.

Experts said those natural advantages, combined with Da Nang’s modern infrastructure, good services, safety and hospitality, create unique traits for the central coastal city.

Da Nang has emerged as a destination of leisure, media and spiritual tourism, as well as entertainment and shopping activities, and a venue of conferences.

The city was named in the top 10 holiday places in Asia by the prestigious online tourism magazine Smart Travel Asia and top 10 fresh destinations by the global online accommodation reservation provider Agoda in 2013.

The listing has enabled Da Nang to reach out further to the world, according to Amir Ahmad Mohamad, general manager of Hoang Anh Gia Lai Plaza Hotel Da Nang.

In addition, the Da Nang International Airport was ranked third among the best airports in the world in 2014, according to a survey by Dragon Air.

The InterContinental Danang Sun Peninsula Resort won the Asia’s Leading Luxury Resort in 2014 thanks to its traditional beauty and modern, luxurious standards.

According to the Vietnam National Administration of Tourism, Da Nang is the best place to live in Vietnam with many world records. The cable line that takes visitors to the peak of Ba Na Hills at an altitude of 1,487 metres in just 17 minutes and is able to carry 3,000 passengers per hour won four Guinness Records in 2013. Besides, Sun Wheel, which is 115 metres in height and situated in Asian Park, Hai Chau district, was listed among the 10 tallest wheels in the world.

On the list of the world’s top 10 destinations for 2018 compiled by the online marketplace and hospitality service Airbnb, Da Nang was ranked fifth in booking surges of up to 255 percent.

In 2018, the city was ranked the second most popular destination for solo or couple travellers, according to the Republic of Korea’s Ticket Monster Inc. The website said people who plan to travel abroad with family members often choose Da Nang./.

DEG financing to develop NovaWorld Mekong project

Novaland Group has signed a partnership agreement with Deutsche Investitions - Und Entwicklungsgesellscheft Mbh (DEG), a reconstruction bank based in Germany and specializing in funding and consulting projects that promote business initiative of improving social living conditions.

Accordingly, DEG sponsors 20 million USD to develop Azerai Can Tho Resort (Au Island, Can Tho) - is one of initiative projects of NovaWorld Mekong leisure and tourism complexes that Novaland Group will develop in the Mekong Delta region. At the same time, DEG also signed a Memorandum of Understanding on the provision of travel quality standard consulting services for the NovaWorld brand.

Experts from DEG will provide Business Support Services to Novaland, such as facilitating expert advice for training professional human resources and orienting the sustainable hotel management standards; while also consulting on environmental issues and effectively exploiting available resources in parallel with ecological development so that the chain of NovaWorld complexes, such as NovaWorld Mekong, NovaWorld Phan Thiet and NovaWorld Ho Tram, will become the destinations for domestic and foreign tourists.

In the Mekong Delta, Novaland and the Military Commercial Joint Stock Bank have jointly contributed funds for the Boston Consulting Group (BCG) – a leading global consulting firm - to develop a Tourism Development Strategy for the 13 provinces in the region to adapt to climate change in accordance with the Prime Minister’s Resolution 120/NQ-CP. Accordingly, by 2030, the Mekong Delta will be the top river destination in Asia, creating 300,000 new jobs.

Based on BCG's strategy, Novaland is planning and implementing the NovaWorld Mekong project in the center of Can Tho City. This is a synchronous large-scale project of international standards that will change the perception of tourism in the Mekong Delta, boosting tourism combined with agriculture and traditional activities, making the Mekong a tourism destination of the world. Phase 1 of NovaWorld Mekong – the Azerai Can Tho Resort - was completed and put into operation in June 2018.

While announcing the partnership between DEG and Novaland, Bui Xuan Huy, General Director of Novaland Group, said: “We look forward to strengthening the cooperation with professional consultants to be able to develop NovaWorld Mekong. in a sustainable way, contributing to both local tourism development and creating new jobs, helping to keep workers from leaving their fields and bringing high-level personnel to the Mekong Delta."

“I am impressed by the vision of the Novaland to think a sustainable way – Can Tho has a unique and diverse bio system that needs to be protected. The photo voltaic energy supply and the waste and water treatment systems are exemplary” – Dr. Hubertus Pleister – Head of Asia.

Previously, on July 7, 2017, DEG financial institution and two members of Nova Group, Anova Corporation and Novaland Group, signed a Memorandum of Understanding within the framework of the Vietnam-Germany Business Forum program, a trade promotion activity on the sidelines of the G20 Summit in Berlin, Germany. This marks the long-term co-operation between two large corporations, aiming to help to improve the quality of life in Vietnam on the basis of sustainable development and compliance with international standards of corporate governance, social responsibility, and environmental protection./.

Vietnam poised to export first batch of milk to China

Local dairy companies Vinamilk, TH True Milk, Moc Chau Milk, Nutifood, and Hanoimilk have been granted approval by China to export their dairy products through official channels.

Tong Xuan Chinh, Deputy Director of Livestock Production under the Ministry of Agriculture and Rural Development, said the nation’s first batch of milk will be exported to China via official channels during mid-October.

Mr Chinh stated that the country’s largest dairy companies including Vinamilk, TH True milk, Moc Chau Milk, Nutifood, and Hanoimilk, will be able to export their products. With a new market opening up for domestic firms, the total export value of dairy products is expected to increase from US$120 million to US$300 million next year. This is due to liquid milk and yogurt products being popular among Chinese consumers.

Chinese customs have granted their approval to Vietnamese companies that will be given an export code before making shipments to China.

A Vinamilk representative revealed that the firm is waiting to receive their export code. Upon acquiring the code, it will take the company at least one month to correctly wrap and package their products before exporting them.

The representative added that the company will export Vinamilk branded yogurt products to this vast market, noting that their products will be made to match the tastes of Chinese consumers, with the packaging design in Chinese language.

According to the Ministry of Agriculture of the People’s Republic of Korea, the domestic supply source of dairy products can only meet 75 per cent of demand.

In 2019, China is predicted to import 39.43 million tonnes of milk and dairy products, of which the import volume of fresh milk and milk powder will be about 750,000 tonnes and 650,000 tonnes, respectively.

These demands for dairy products regionally will therefore open a wealth of opportunities for Vietnamese businesses to boost their exports.

According to the Department of Livestock Production, Vietnam’s total number of dairy cows increased by nearly 11 per cent last year to over 294,000, producing nearly 940,000 tonnes of milk.

The country is aiming to have 500,000 dairy cows by 2020 towards producing one million tonnes of milk.

By 2030, the total number of dairy cows is set to hit 700,000 with milk output reaching two million tonnes.

Hung Yen woos Japanese investors

The northern province of Hung Yen will spare no efforts to turn it into the optimal investment destination for Japanese investors, Chairman of the provincial People’s Committee Nguyen Van Phong said on September 27.

Speaking to more than 100 representatives of Japanese firms participating in an event calling for investment to Hung Yen’s industrial parks (IPs) held in Tokyo, Phong underlined that the province badly needs cooperation in the transfer of modern and eco-friendly technologies, adding that Hung Yen will create favourable conditions for Japanese firms once they invest in the locality.

To attract foreign investors, the province has bolstered administrative reforms and information technology application. It has worked to raise capacity of civil servants, as well as speed up infrastructure and land clearance.

The same day, Hung Yen inked a memorandum of understanding (MoU) with Sumitomo Corporation, paving the way for the expansion of Thang Long IP II in the province.

Under the MoU, groundbreaking is scheduled for 2021, with lots to be offered in 2022. It will be one of the biggest Japanese industrial parks in Vietnam.

General Director of Thang Long IP II Goki Nobuta said the Sumitomo highly values the investment climate in Hung Yen, which is located in the centre of northern Vietnam and boasts abundant labour resources.

Hung Yen is currently home to 448 foreign direct investment (FDI) projects, with a total registered capital of US$ 4.6 billion, according to the local People’s Committee.

Of the figure, Japanese investors have taken the lead with nearly US$ 3 billion, accounting for 65 percent of the total FDI capital poured into the province.