BUSINESS NEWS 27/6

Marubeni to build $115 mil instant coffee plant in Vietnam

BUSINESS NEWS 27/6

Japan’s Marubeni Corporation has announced it will build a $115-million instant coffee production plant in the southern province of Ba Ria-Vung Tau.

Construction would begin immediately after getting all necessary permits, and commercial operation and supply would commence in 2022. The plant’s initial production capacity will be 16,000 tons a year.

Last month Marubeni established Iguacu Vietnam Co., Ltd, a wholly owned subsidiary, to carry out the project.

The factory would mainly supply the Chinese and Southeast Asian markets where demand for instant coffee is growing, Marubeni said. It expects global demand to keep rising in line with economic growth. China and Southeast Asia, with a combined population of over 2 billion, are growing at a rate of more than 5 percent a year, far higher than the global average of 2 percent.

The company said: "Vietnam is the second biggest coffee producing country after Brazil, and the biggest producer of robusta coffee, which is the predominant variety of instant coffee. Therefore, Vietnam is the most suitable country to produce instant coffee for sale to China and ASEAN." The factory will be its second after one in Brazil.

Marubeni is a major investor in Vietnam, with interest in thermal power plants like Nghi Son 2, which it owns, and Thai Binh 2, for which it was an engineering, procurement, and construction (EPC) contractor.

It is also engaged in export and import of coal, fisheries, coffee, grains, and petrochemicals and production of food and textiles.

In January it began construction of a $115-million containerboard manufacturing plant, Kraft of Asia Paperboard & Packaging Co, at the Phu My 3 Specialized Industrial Park in Ba Ria - Vung Tau.

Novelty does not last: Golden Gate performance slipping

The lack of new restaurant formats caused the revenue and profit of Golden Gate, the owner of a series of restaurant chains in Vietnam, drop.

According to the financial report of Golden Gate, in 2018, the revenue growth of its restaurant chains including Vuvuzela, Sumo BBQ, and Gogi reduced compared to previous years while the profit margin turned negative. Notably, the company reported a consolidated revenue of VND3.97 trillion ($172.6 million), up 17 per cent on-year. Its net profit reached $269 billion, up 5 per cent on-year.

According to the representative of the company, while there was revenue growth, it was far lower than expectations. Golden Gate's growth speed in 2018 was at a record low since 2013, when the company's revenue grew by 30-50 per cent a year on average.

Besides, the profit margin decreased from 15 per cent in 2013 to 6.8 per cent in 2018.

Golden Gate explained that the slow growth came from not being able to find more attractive restaurant formats to create a breakthrough like they did with Vuvuzela and their other chains which were all first to the market.

Previously, Golden Gate reported an increase of 15 times in revenue within seven years only. As of the end of 2018, it owned 278 restaurants across the country. Almost all of these restaurants made profit, excluding new restaurants.

Restaurant franchises are considered having a short “life cycle” that peak in 3-5 years, thus in order to maintain and increase profit, the company will have to look for new products to lure in customers. However, last year, Golden Gate only launched two new brands, Hutong Sea Food and Hutong hotpot restaurant chains.

Although the business results in 2018 were not as high as expected, it still set the target of acquiring VND4.82 trillion in net revenue, up 21 per cent on-year with the after-tax profit of VND345 billion ($15 million), up 28 per cent on-year. Besides, the group plans to open an additional 80 restaurants.

In order to increase its profit margin, Golden Gate will decrease raw material usage and apply ERP managing system.

HCMC real estate market spirals downward

The number of real estate transactions in HCMC has fallen 49 percent year-on-year in the first three months of 2019.

Transaction volumes in all segments – affordable, mid-range and high-end housing – have fallen. Absorption rate in this market also fell 8 percent compared to last quarter, Savills said.
The HCMC real estate market had decelerated in the last quarter of 2018, with 11,000 units sold for a 27 percent year-on-year drop.

According to Savills, the downwards trend in consumption seen in HCMC has followed a decline in supply. Total supply, which includes unsold units and newly built units in the last quarter of 2018, fell 44 percent year-on-year.

This number fell by a further 34 percent in Q1 2019 to just over 12,000 apartments, which represents a 57 percent drop compared to Q1 2018.

According to real estate analysts CBRE Vietnam, HCMC saw its one of its worst periods in the second quarter of 2018. Just 7,000 plus units were consumed, mainly due to negative sentiments after a fire at Carina Plaza, a 700-room apartment complex, killed 13 people and injured 28 in March.

Since then, the market had consistently underperformed based on year-on-year comparisons, according to CBRE. New supply in the third quarter of 2018 was just 6,711 units, down 14 percent year-on-year.

Despite seeing a surge in demand in the last quarter, consumption was still 16 percent lower than the same period in 2017, CBRE said.

Average prices of newly built apartments in the first 3 months of the year rose 3.1 percent compared to the previous quarter, and increased by 14.9 percent over the same period last year, CBRE said.

One of the problems facing the Ho Chi Minh City market stems from legal difficulties in selling projects, Le Hoang Chau, chairman of HoREA, told local press. In fact, there is a lot of supply, but many fail to meet regulatory standards required to begin selling, he said.

Many projects get stuck at various levels from applying for approval from local authorities to getting permission to begin construction and to getting permission to begin selling.

These are major bottlenecks for investors, who just want to sell their inventory as soon as possible to recover capital, said Chau.

Africa has high trade potential with VN

More Vietnamese businesses should pursue trade with Africa which has high demand for products that are Viet Nam's strengths, according to the Ministry of Industry and Trade's West Asian-African market office.

Nguyen Minh Phuong, head of the office, said that Africa's production capability still needs more development and as a result, it has a high demand for consumer goods and foodstuff.

The region also supplies raw materials for Viet Nam's production and processing. Viet Nam imports a great deal of cashew, cotton, wood and minerals from Africa, and exports mainly rice, phones, seafood, electronic goods and coffee to the continent.

Phuong said that Africa's highest demand would be rice, coffee and cassava powder.

The two sides have a long history of co-operation and partnership, but differences in culture and business practices, in addition to geographical distance and lack of knowledge, make it difficult for Vietnamese businesses to enter Africa.

In addition, transportation costs can be relatively high in Africa, and infrastructure needs more development.

Trade facilitation events are important to keep businesses informed of the African market, Phuong said, adding that businesses should consider opening representative offices in African countries to promote exports.

Bilateral trade between Viet Nam and Africa in 2018 was around US$6.6 billion. Viet Nam exported $2.9 billion worth of goods to Africa.

Vinh Tan 2 solar power plant opens for business

Vinh Tan 2 solar power plant, worth VND986 billion (US$42.3 million), began commercial operation in the south central province of Binh Thuan on Saturday.

Financed by the Power Generation Joint Stock Corporation 3 under the Electricity of Vietnam (EVN), the 49-ha plant has a designed capacity of 42.65 MWp and is expected to contribute 68.4 million kWh of electricity to the national grid each year.

EVN chairman Duong Quang Thanh said the operation of the plant will provide electricity for the south as the domestic coal reserve are insufficient to meet demand and sources of hydro-power are exhausted.

To date, 79 solar power plants have been connected to the national grid and begun commercial operation for a combined capacity of 4,312 MW, Thanh said, adding that construction of 10 to 12 more plants should be completed by the end of this month.

Viet Nam’s annual power consumption has increased by an annual average of 10 per cent in recent years, and the country is at risk of facing power shortages in the 2020s. According to environmental experts, renewable energy like solar will play a vital role in helping Viet Nam accomplish its long-term goal of hooking up the whole country to the national grid.

National quality awards presented to 75 businesses

Seventy-five Vietnamese businesses received awards for their achievements last year in product and service quality and business performance in Ha Noi on Sunday.

They were honoured at the Vietnam National Quality Awards 2018 ceremony.

Twenty-two of the firms won gold prizes, including nine big production businesses, eight small- and medium-sized production firms and small- and medium-sized service companies. Smaller prizes went to 53 other businesses.

Congratulating the winners at the ceremony, Deputy Prime Minister Vu Duc Dam said: “To enhance competitiveness, it is necessary to improve productivity and especially quality as customers’ demands have become increasingly diverse and strict."

He expressed his hope that more businesses will vie for the awards so as to help encourage productivity and quality, thereby contributing to national development.

The annual Vietnam National Quality Awards are part of the GPEA system of the Asia Pacific Quality Organisation. They were first presented in 1996.

Also at the ceremony, the Global Performance Excellence Award 2018 (GPEA) was presented to the Binh Minh Plastic JSC and the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank).

Prior to the ceremony, a seminar was held in Ha Noi on Saturday for the winning firms to share their experiences in building and reforming their corporate governance systems. It was organised by the Directorate for Standards, Metrology and Quality under the Ministry of Science and Technology.

Saigon Innovation Hub joins ASEAN startup programme

The Saigon Innovation Hub (SIHUB) has been appointed by the government of Malaysia as the only representative of Vietnam to join the ASEAN startup programme.

The information was announced at the first Malaysia Tech Week 2019 which took place from June 17-21.

At the event, Malaysia New Entrepreneur Foundation launched the initiative to build a Southeast Asian startup community under the name Rice Bowl Republic to compete with the four big startup hubs in the world: the US, China, India and Europe.

The ASEAN Rice Bowl Startup Awards was also launched at the event.

The awards, which covers 13 categories, is said to be a “door” to help startups, startup incubators and co-working space centers, and universities access investors and join the global playground with as much support as possible.

Participants of the event pledged to remove obstacles in innovation movements in Southeast Asian nations and support the development of startup ecosystems in separate countries.

Vietnam, EU partnership prospects bright: German experts

The development potential for trade partnership between Vietnam and the EU is bright thanks to abundant opportunities brought by the soon-to-be-signed EU-Vietnam Free Trade Agreement (EVFTA), according to a German expert.

Dr. Gerhard Will, a Southeast Asia expert from the Berlin-based German Institute for International and Security Affairs (SWP), further said that in order to make full use of opportunities for boosting bilateral economic relations, Vietnam should make careful analysis and forecast of chances and challenges.

He advised Vietnam to focus on enhancing productivity and developing high-quality products with greater value, while improving the quality of human resources.

Meanwhile, Dr. Daniel Muller, ASEAN Regional Manager of the German Asia-Pacific Business Association (OAV), held that amidst the global trade tension, Vietnam is a promising gateway for German enterprises to reach the ASEAN.

Alongside, the 96-million-strong economy has seen increasing income of locals, while the Germany-Vietnam trade partnership has been developing, he said.

Through its free trade agreements, Vietnam has expressed a strong message of openness amidst the increasing trade protectionism, he said, adding that with its diverse advantages, Vietnam can make stronger competition for deeper trade cooperation with Germany.

Dr. Muller lauded the exchange of high-level visits between Germany and Vietnam since the beginning of 2019. In this November, the OVA will send a delegation to Vietnam to explore the country’s food processing, health care and pharmaceuticals sectors, which the German side see bright prospects of partnership for both sides.

He also said that in terms of foreign investor attraction policies, Vietnam should focus on areas of information and communication technology, garment and textile, and automobile.

Vietnam should also pay greater attention to promoting its internal strength and improve its capacity in producing domestic economic values through such project as Vinfast, the official advised.

Airports Corporation of Vietnam aims for 9 percent expansion

The Airports Corporation of Vietnam (ACV) has targeted earning 19.1 trillion VND (820 million USD) in revenue and 8.2 trillion VND (355 million USD) in pre-tax profit in 2019, representing year-on-year increases of 7 percent and 9 percent.

ACV holds a positive view of the growth trajectory of the Vietnamese air transport market thanks to the participation of new domestic airlines and the addition of international flights to Phu Quoc, Phu Yen and Phu Cat, said ACV General Director Vu The Phiet at the company’s 2019 Annual General Meeting of Shareholders in HCM City on June 22.

However, the company is expected to encounter some difficulties related to competition from the private sector, policies on flight zones, investment rights and delayed land procedures, along with increasing electricity and fuel costs and the unstable global political situation.

Therefore, AVC expects revenue growth for both aviation and non-aviation services to be lower than last year, Phiet said. Aviation service revenue will continue to rise but the increase will be lower than in 2018 due to lower international revenues from Cam Ranh Airport.

Non-aviation revenue is also expected to report lower growth than last year. In 2018, many new facilities were completed and put into operation, but this year, most new projects are still preparing for investment. The company aims to raise non-aviation service revenue to 40 percent of its total revenue in the next few years, Phiet said.

In 2018, profit increased sharply thanks to the policy of increasing service prices under Decision 2345 of the Ministry of Transport. The company recorded total revenue and post-tax profit of 17.8 trillion VND and 6 trillion VND, up 19 percent and 44 percent respectively against 2017.

Phiet said the company has submitted a feasibility study for the first phase of construction for Long Thanh International Airport. It is awaiting review before sending the study to the National Assembly for approval in October, 2019.

Lai Xuan Thanh, Chairman of ACV, said that the plan to list on the HCM Stock Exchange depended on the company’s equitisation process. ACV needs to assess the value of its assets and State assets before it can move forward with equitisation.

In 2019, ACV will continue to invest in infrastructure to meet the needs of airlines with investment capital of more than 7.3 trillion VND, including to fund the construction of terminal T3 at Tan Son Nhat Airport in HCM City, the project to expand terminal T2 at Noi Bai Airport and the terminal T2 project at Cat Bi Airport in Hai Phong city.

Phiet said the feasibility study for the new terminal was nearly finished. The terminal is expected to have an annual capacity of 20 million passengers, one station and one high rise garage. It is expected to cost 11.5 trillion VND in total.

Phiet said the company is still struggling to secure enough funding to complete the project. It has asked to Government to allow it to construct the terminal and serve as its investor.

Quang Ninh aims to develop smart tourism features to better serve visitors

The northern province of Quang Ninh is to promote the use of information technologies throughout a variety of projects to better serve tourists and develop into becoming a smart city in the future.

quang ninh aims to develop smart tourism features to better serve visitors hinh 0 In order to find information about the locality, visitors can now log on to the information portal about Quang Ninh tourism at halongtourism.com.vn and discoverhalong.gov.vn or additionally pose queries through the information portal’s fan page.

The websites will provide visitors with information regarding tourist attractions, entertainment activities, festivals, local delicacies, maps, online bookings, and other support activities.

Uong Bi city in Quang Ninh is seeking to boost tourist numbers through the use of technology. The city boasts a number of popular tourist attractions such as Yen Tu mountain and Yen Trung lake.

In April, the city launched Dulichuongbi app for smartphones which updates visitors with schedules, estimated costs, and the best times to explore the province’s destinations.

quang ninh aims to develop smart tourism features to better serve visitors hinh 1 In addition, Quang Ninh province has also upgraded their tourism infrastructure, services, and information technology. Visitors can easily gain access to the internet through more than 100 free Wifi hot spots located in residential areas, Bai Chay tourism site, Tuan Chau, and other destinations in Ha Long Bay such as Thien Cung cave and Ti Top island.

A local resident said free Wifi access has eased the checking information relating to tourism, entertainment sites, restaurants, and streets.

Now visitors can use digital maps to gain information about streets, tourist attractions, and create their own tour schedule. Support utilities will help in guiding tourists through the region’s tourism activities.

Pham Ngoc Thuy, director of the provincial Department of Tourism, said the use of information technologies to support visitors is an inevitable trend, noting that Quang Ninh has deployed a pilot model with the aim of turning Ha Long into a smart city in the future.

LaoVietBank helps connect Vietnamese, Lao economies

The Lao Viet Joint Venture Bank (LaoVietBank) has become a bridge connecting the economies of Vietnam and Laos over the past years and a symbol of the bilateral special friendship, Lao Deputy Prime Minister and Minister of Finance Somdee Duangdee has said.

The Lao Deputy PM made the statement at a ceremony held by the bank in Vientiane on June 22 to receive a first-class Labour Order presented by the Lao State and celebrate its 20th founding anniversary (June 22, 1999-2019).

The event was attended by Chairwoman of the National Assembly Pany Yathotou, Minister of Planning and Investment Suphan Keomixay and Governor of the Bank of the Lao PDR Sonexay Sitphaxay. Vietnamese Ambassador to Lao Nguyen Ba Hung, Minister of Planning and Investment Nguyen Chi Dung and Deputy Governor of the State Bank of Vietnam Dao Minh Tu were also present at the ceremony.

Over the past 20 years, LaoVietBank has proved itself as a leading payment bridge between Vietnam and Laos by providing a variety of multi-purpose and useful financial services for businesses and people of both countries, making significant contributions to promoting Laos’ socio-economic development, Somdee Duangdee said.

He added that the bank has implemented the task of disbursing aid packages for construction projects of transport, schools, and hospitals while providing numerous financial services and products for enterprises and people to help promote bilateral trade and investment.

LaoVietBank General Director Nguyen Van Binh said the bank will continue promoting its role as a payment bridge between the two economies, and it will work harder to remove difficulties in bilateral payment activities for Vietnamese and Lao businesses.

LaoVietBank is a joint venture between the Bank for Investment and Development of Vietnam (BIDV) and Banque Pour Le Commerce Exterieur Lao Public (BCEL).

According to Governor of the Bank of the Lao PRD Sonexay Sitphaxay, the bank has gained significant achievements since its establishment 20 years ago.

From the initial capital of 10 million USD, the charter capital of LaoVietBank has reached 100 million USD at present, becoming one of the biggest banks in terms of charter capital in Laos, he said.

Its total assets are estimated at 1.12 billion USD, ranking third among the largest banks in Laos.

The total outstanding loans reached almost 800 million USD, ranking second in the credit market share in Laos, while the total mobilised capital reached approximately 1 billion USD, raking third in the market share.

The bank’s network has been expanded to nine out of the cities and provinces of Laos, he added.

On this occasion, the Lao Party and State also presented four second-class Labour Orders, five third-class Labour Orders and five Friendship Orders to officials and employees of LaoVietBank.

 

The State Bank of Vietnam awarded the emulation flag to LaoVietBank as the leading unit in the emulation movement in 2018.

Ha Giang's remote commune to develop eco-toursim

When visiting Ta Su Choong commune in the northern province of Ha Giang in summer, tourists can enjoy the pristine natural landscape when local farmers let water flow over their terraced rice fields and lose themselves in the traditional culture of local ethnic minority groups.

Located 21km to the south west of Hoang Su Phi centre, the commune has 355 households with over 1,700 people. They include five ethnic minority groups, who live mainly from agricultural work.

The commune enjoys cool weather all year round, clean air and little traffic, as well as the magnificent rice fields, forests and waterfalls. The area also covers acres of old Shan tuyết tea trees, which grow on top of high mountains. One side of the tea leaf is covered with white fur like snow, hence the name “tuyết”, which means “snow” in Vietnamese. The leaves are used to brew a sweet-tasting tea.

The commune is also home to the Hoa Ceo Phin waterfall and many fields of tam giac mach (triangle buckwheat) flowers.

“Local authorities have said that tourism is an important focus for the commune,” Giang Van Thang, Chairman of the commune’s People’s Committee, told Ha Giang Newspaper. “We have completed a project to develop eco-tourism in local villages.”

“In the next two years, the commune will focus on establishing an eco-tourism village in Hoa Cheo Phin and use this as a model for developing eco-tourism more widely.”

Hoa Cheo Phin hosts dozens of “nha trinh tuong” of the Mong ethnic minority, which are located in the middle of rice fields.

The houses are built with thick clay walls and no pillars, and are roofed with tiles or dry leaves.

The typical house always includes a main door, one smaller door and at least two windows. The house is warm in winter and cool in summer, and protects owners from wild animals the elements.

“Nature is so fresh here,” said Ngo Vinh Phu, a visitor from Hanoi. “The landscape here is so peaceful and magnificent like in paintings.”

Tourists usually enjoy local delicacies like carp, black tender mountain chicken, salads made from wild banana flowers, and local pork.

According to Lu Vang Pao, a leader of the village, most of the 116 households in the village are of the Mong ethnic minority group.

“They are curious about the eco-tourism plan but most of them are still reluctant due to traditional customs. They rarely welcome strangers to stay in their homes,” he said.

Now ten households have registered to join the project. Most of the families are poor and have no experience in receiving guests.

“We will organise field trips for them to successful homestay models in other communes of Hoang Su Phi district,” Pao said. “So that they can learn how to welcome tourists.”

“The provincial authorities will also assist them financially to invest in ectra facilities,” he said.

Vang A Su, a local farmer, could not hide his excitement with the project.

“My whole family will join the project,” he told Vietnam News. “My mother and wife can cook while my son and myself can take the guests around the village.”

“We live simply but our hearts are warm towards tourists,” he said with a broad smile.

National quality awards presented to 75 businesses

The Vietnam National Quality Awards 2018 were presented at a ceremony in Hanoi on June 23, honouring 75 companies with remarkable achievements in product and service quality and business performance.

Twenty-two of the firms won the golden prize of the Vietnam National Quality Awards 2018.

Nine of them are big production businesses, namely DOMESCO Medical Import-Export JSC, Viglacera Corporation, An Phat Plastic and Green Environment JSC, Tan Hiep Phat Service and Trading Co. Ltd, Dong Phu Rubber JSC, Thanh Hoa Beer JSC, Traphaco JSC, KCP Vietnam Industries Limited, and Vedan Vietnam Enterprise Corp. Ltd.

Eight others are small- and medium-sized production firms, and five are small- and medium-sized service companies.

The Vietnam National Quality Awards went to 53 other businesses, including 20 big production companies, 21 small- and medium-sized production companies, one big service company, and 11 small- and medium-sized service ones.

Also at the ceremony, the Global Performance Excellence Award 2018 (GPEA) was presented to the Binh Minh Plastic JSC and the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank).

The annual Vietnam National Quality Awards are part of the GPEA system of the Asia Pacific Quality Organisation. They were first presented in 1996.

Addressing the ceremony, Deputy Prime Minister Vu Duc Dam congratulated the winners, noting that to enhance competitiveness, it is necessary to improve productivity and quality, especially quality as customers’ demand has become increasingly diverse and strict.

He expressed his hope that more businesses will vie for the awards so as to help encourage the productivity and quality improvement movement, thereby contributing to national development.

Prior to the presentation ceremony, a seminar was held in Hanoi on June 22 for the winning firms to share their experience, both successes and failures, in building and reforming their corporate governance systems.

It was organised by the Directorate for Standards, Metrology and Quality under the Ministry of Science and Technology.

BZZ offloads GTNfoods shares

BZZ Invest Joint Stock Company has offloaded its entire holding in the Vietnamese food company GTNfoods.

BZZ sold all of its 17.5 million shares of GTN, equivalent to 7 per cent of the total number of voting shares in circulation. It is no longer a shareholder of GTNfoods as of June 4, 2019.

This transaction was completed with an average selling price of VND17,500 (US$0.75) per share, bringing BZZ over VND306 billion ($13.2 million).

In March 2019, BZZ purchased a large amount of GTN shares and became a major shareholder.

At that time, the largest shareholder of GTNfoods was West Ocean Invest Joint Stock Company, holding 28 per cent.

However, on May 31, Vinamilk surpassed West Ocean Invest to become the largest shareholder in GTNfoods by purchasing 90 million shares. After the transaction, Vinamilk holds 95.85 million GTN shares, equivalent to 38.34 per cent.

FPT posts five-month gains

Revenue and pre-tax profit in the first five months of the year gained 20-22 per cent year-on-year, tech group FPT has reported.

Revenue in the first five months reached VND9.96 trillion (US$428.3 million) and pre-tax profit hit VND1.72 trillion, FPT said in a filing sent to the Ho Chi Minh Stock Exchange.

The figures were equal to 103 per cent and 112 per cent of the firm’s targets for 2019.

The firm also recorded higher profit margin than last year at 17.3 per cent in the first five months, up from last year’s 17 per cent.

The technology and telecommunications divisions remained the driving force for the company’s improvement.

Revenue and pre-tax profit in the tech division were up 24 per cent and 45.3 per cent yearly to VND5.4 trillion and VND702 billion, respectively.

Meanwhile, telecommunications recorded a 17 per cent increase in revenue and 7.9 per cent growth in pre-tax profit in the five month period. The earnings were VND4 trillion and VND631 billion, respectively.

Revenue and pre-tax profit from overseas markets reached VND4.2 trillion and VND663 billion, up 36-36.5 per cent.

Overseas earnings accounted for 42 per cent of the group’s total.

Last year, earnings from overseas markets were 37 per cent of the group’s total.

The technology business continued expanding in overseas markets as both revenue and pre-tax profit gained 38.8 per cent and 38 per cent to touch VND3.98 trillion and VND609 billion, respectively.

Property market heats up in Binh Phuoc

The property market in the southern province of Binh Phuoc is expected to heat up because of industrial zone planning from now to 2030, according to experts.

The province plans to establish 35 industrial clusters in its 11 districts and towns by 2030, whose combined capital requirement will be VND5.9 trillion (US$260 million).

Of the 35 clusters, 21 will be built on ​​583 hectares of land in the 2020-25 period as well as Hoa Lu Border Economic Zone with a total area of 28,000ha.

From 2025 to 2030, another 14 industrial clusters will be set up across another ​​580 hectares.

Industries that will be developed within these clusters include agro-forestry product processing, and manufacture of rubber and plastic products, metal products, electronic products, engine vehicles, textiles and apparel. These clusters are expected to create around 30,000 jobs.

The demand for residential areas is expected to grow because of the new industrial zones.

Of the new residential projects, the Asian Holding Real Estate Company has invested in the Asian Lake View project in Dong Xoai City.

The project, located on 4.7ha, includes a residential area, shophouses and entertainment area.

Another residential project is the 92.7ha Cat Tuong Phu Hung Complex Urban Area in Dong Xoai City with total investment of US$ 70 million.

The project will have residential areas, land plots and two shopping malls with total area of 4.2ha.

Binh Phuoc will focus on attracting high-tech projects and organic agriculture, and forestry product processing, with the key products rubber, cashew nuts, pepper, and fruits.

In the first seven months of 2018, Binh Phuoc attracted 22 projects with total registered capital of $314 million. Of these, seven new projects were located in Becamex Binh Phuoc Industrial Park with registered capital of $272 million.

Eximbank meeting delayed for the third time

The Viet Nam Export Import Commercial Bank (Eximbank)'s second 2019 Annual General Meeting of Shareholders was postponed again on Friday due to a dispute among major shareholders.

This meeting was initially scheduled to be held on April 26 but failed for the first time due to a lack of shareholders with voting stocks (57 per cent, less than the acceptable level of 65 per cent).

The meeting was then delayed till May 26, the management board said it needed more time to prepare thoroughly for the organisation, so the meeting was postponed for a second time.

At a meeting held in Ha Noi, the bank’s strategic shareholders said they did not agree with the board’s decision, questioning the legitimacy of Chairman Cao Xuan Ninh, Tien Phong online reports.

A representative of Sumitomo Mitsui Banking Corp (SMBC) asked the Management Board to re-consider the legitimacy of the current Chairman before continuing with the meeting.

Head of Supervisory Board Tran Ngoc Dung, nonetheless, informed that 55 per cent of the shareholders did not agree with the continuation of the meeting, more than 5 per cent did not have an opinion and only 39 per cent agreed.

As a result, Eximbank's General Meeting of Shareholders was postponed for the third time.

HSBC unveils loans for homeowners to install rooftop solar

HSBC Vietnam has rolled out a new preferential interest loan programme for homeowners in HCM City and Da Nang to buy and install rooftop solar panels.

Created in collaboration with GIC Investment Join Stock Company (GIC), the loan carries the bank’s lowest unsecured variable interest rates of 11.99 per cent and 12.99 per cent for premier customers and mass retail customers, and a tenor of up to 60 months.

Borrowers can also get discounts directly on GIC products of 14 per cent for premier customers and 12 per cent for mass retail customers.

GIC’s rooftop solar energy systems come with a 12-year product warranty and 25-year performance warranty.

With power demand projected to increase by 8 per cent annually in 2021-31, Viet Nam needs 60,000MW of installed capacity by 2020, 96,500MW by 2025 and 129,500MW by 2030.

The Government is developing renewable energy to ensure energy security and address this growing demand.

The new lending product is in line with the HSBC’s global commitment to sustainable finance.

In 2017, it announced plans to provide US$100 billion of sustainable financing and investment by 2025.

Government bonds sold for VND2 trillion

The State treasury raised VND2 trillion (US$86 million) from selling government bonds at the Ha Noi Stock Exchange this week.

The bonds were classified into three maturity terms: five, 10 and 15-year.

Around VND1 trillion was raised from selling 10-year G-bonds at a per-annum yield rate of 4.65 per cent, slightly lower than the figure on June 5.

Fifteen-year g-bonds were also auctioned for VND1 trillion with an annual yield rate of 5 per cent, 0.02 per cent lower than that of the previous auction.

However, VND500 billion worth of five-year g-bonds were not purchased.

Since the beginning of the year, the State Treasury has sold G-bonds worth VND102.6 trillion at the Ha Noi Stock Exchange.

SCG commits to building comfortable homes for city dwellers

Following the sucess of Vietbuild Danang last month, SCG – one of the leading conglomerates in the ASEAN region – continues to showcase its vast range of advanced solutions and services to customers, particularly homeowners in Ho Chi Minh City at Vietbuild Ho Chi Minh City from June 19 to 23, 2019.

The exhibition is built around the concept of “A Comfortable and Affordable Home for Saigonese”, which features SCG’s wide range of cement, cement-based products, solutions, and services addressing the different issues faced by city-dwellers when constructing or renovating their homes.

Especially, the company has showcased for the first time its newest invention SCG Super Cement as a breakthrough product to serve the needs of southern customers.

Nopporn Keeratibunharn, general director of SCG Cement – Building Materials (Vietnam), said, “As the leading cement and building materials expert with more than 25 years of experience in Vietnam, SCG takes into account our local customers’ demands for a comfortable and affordable home. Especially, the recent fast pace of urbanisation in Ho Chi Minh City has posted many challenges for metropolitan residents to build their dream homes in tighter spaces.”

“At Vietbuild Ho Chi Minh City 2019, SCG has designed a conceptual exhibition to showcase our comprehensive solutions and services addressing potent issues for local homeowners. These innovations will help our customers build comfortable homes that are worry-free, fulfilling, and easy to construct and maintain.

“Besides, our various products and services will also make homebuilding more affordable for different customer segments. Finally, with fast and easy installation under the guidancy and consultancy of SCG, all the solutions and services will be delivered at the highest quality to customers,” Nopporn added.

Designed as a two-generation house that reflects the lives and traditions of Saigonese, the SCG exhibition at Vietbuild leads visitors through different living spaces and introduces how SCG products could serve the aesthetic and functional needs of family members.

Besides, it also demonstrates SCG’s solutions to various issues faced by Saigonese when constructing or renovating a home, such as SCG’s cement and ready-mixed concrete innovations to increase strength and durability of the house foundation and structure as well as enhance the water-resistance of the concrete deck, while SCG’s building materials systems and solutions aim to bring a comfortable living space with better lighting, natural ventilation, sound-proofing, and heat protection.

Below are the key highlights of SCG's showcase at Vietbuild Ho Chi Minh 2019.

SCG Super Cement: SCG introduces its newest invention SCG Super Cement with SCG Nano Tech, a breakthrough innovation that will uplift Vietnamese construction standards.

This multi-purpose cement is certified as world-class quality with the exclusive SCG Nano Technology which develops particles of cement at the nano-scale range to create extremely tight bonding.

It will deliver the best strength, durability, and versatility that are not only required for foundation and structure but also for other construction applications. Customers can also pre-order this product during the fair.

Ready-mixed concrete (RMC): SCG introduces their latest innovations for civil construction which are instant concrete and water-proof concrete.

The instant concrete STARNOW is created by SCG to bring utmost convenience for homeowners or contractors as it does not require mixing of raw materials yet still ensures the consistent quality of concrete.

Meanwhile, SCG waterproof concrete is designed for high resistance to water penetration or low water permeability. Especially, customers can now easily order SCG’s ready-mixed concrete via the website eBetong.com with more flexibility and comfort as they will get benefits including easy order, on-time delivery, and easy tracking.

Durability solution on foundation and structure: answering customers’ requirements for durable and strong foundation, SCG Super Cement with SCG Nano Tech helps to protect your home from the beginning from potential impacts by weather or outside factors. Meanwhile, STARMAX PCB40 and STARNOW concrete with stable quality help to prolong the lifetime of any construction.

Integrated solution for comfortable living: bringing customers living in a comfortable house with moderated temperature, good ventillation, and ample lighting, as well as sound-proofing and water resistance highlighted by SCG Cool House system and SCG ceiling-walling-flooring system.

SCG features a variety of versatile and smart products and systems for convenience in installing, renovating, and upgrading the home, while adding more aesthetics and style to customers’ house.
These systems are SCG's innovations to answer the needs of Saigonese in the era of high urbanisation and modernisation.

Smart artistic customisation: achieving different needs of living functions and styles for fitting each family's unique taste whle maximising material utility in many parts of the house and living space.

SCG features a variety of versatile and smart products and systems for convenience in installing, renovating, and upgrading the home while adding more aesthetics and styles to customers’ house. These solutions fulfill the need of customers in constructions and home decorations.

Moreover, to enhance its professional services to customers, SCG also introduces the installation service by its certified partners.

This certified service ensures that SCG’s products will be installed properly to deliver the best quality to homeowners. Together with advanced services, customers can also go online to experience SCG’s roof applications for pre-build knowledge (https://www.ngoimauscg.vn), SCG smart system (https://www.scgsmartbuild.com) as well as refer to SCG’s instructions for building an ideal house via the company’s living idea hub at https://vn.scgbuildingmaterials.com.

 
 
 
 
 
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