VIETNAM BUSINESS NEWS HEADLINES OCTOBER 25

CMC Global opened new branch in Da Nang

VIETNAM BUSINESS NEWS HEADLINES OCTOBER 25

On October 25th 2019, CMC Corporation opened CMC Global’s Da Nang branch at Thanh Loi II Building, No. 1 Le Dinh Ly, Thanh Khe District, Da Nang.

This is a strategic development of CMC to effectively exploit high quality IT human resources in Vietnam, as well as to affirm the growth rate of CMC Global in both personnel size and facilities to meet the market and needs of domestic and foreign customers.

Sharing in the grand opening ceremony of Da Nang office, Mr. Nguyen Quoc Su (CEO of CMC Global) affirmed: “The opening of Da Nang branch is in accordance with the strong and rapid development strategy of CMC Global to provide high quality IT human resources & ICT services to the domestic and international market. We will optimize the training and usage of IT resources throughout Vietnam.”

After more than 2 years of establishment (since 2017), CMC Global has grown rapidly with 500 employees in Vietnam and 70 employees in Japan, revenue reached nearly 8 million USD in 2018.

With rapid expansion and scale-up (3 branches in Japan, Ho Chi Minh City, Da Nang and head office in Hanoi), CMC Global believes they can service large ICT projects implementation to satisfy international customers.

To affirm the outstanding development of CMC Global, Mr. Nguyen Trung Chinh (Chairman & CEO of CMC Corporation) spoke at the opening ceremony of Da Nang Branch: “Go Global is an important strategy of CMC Corporation to become a leading ICT company in the region, providing world-class international products and services, reaching US $ 1 billion in revenue by 2023. I am very proud of the rapid development of CMC Global in the past 2 years. With the potential of IT human resources of Vietnam, I believe that CMC Global Da Nang branch will contribute important contributions to CMC’s global strategy.”

Mr. Namiki Tasuo - Senior Consultant of Hitachi System Power Service Japan shared the joy with CMC Global: “We absolutely believe in the growth of CMC Global and two companies will jointly deploy successful IT projects. Today marks the establishment of CMC Global branch in Da Nang, and Hitachi will implement the first project in Da Nang together with CMC Global. ”

Mr. Tran Ngoc Thach - Deputy Director of Department of Information & Communications of Da Nang City congratulated CMC: “Da Nang set a strategic goal by 2045 to become a smart, ecological and worth-living city. To achieve that goal, Da Nang set out 5 main tasks, including developing an innovative city and developing ICT-based digital economy. We are confident that the presence of CMC Global in Da Nang will contribute to Da Nang’s strategic improvement.”

According to the corporation business strategy, by 2023, CMC Global will have 5000 high quality IT personnel, providing comprehensive IT services to domestic and foreign customers. With a comprehensive ICT service delivery model from basic services according to international standards to strict requirements on quality, processes and languages, CMC Global believes they will satisfy domestic & international customers.

PVOIL and MoMo co-operate for cashless payment of petrol

Drivers in Viet Nam will be able to buy products from PetroVietnam Oil Corporation (PVOIL) using their mobile with the e-wallet service provider MoMo from November 1.

Targeting a doubling of cashless payments over the next six months, PVOIL on October 23 signed a strategic co-operation with MoMo to provide a new payment solution for PVOIL customers and also in line with a government resolution promoting cashless payments for public services.

Accordingly, from October 27 customers in Ha Noi and HCM City can pay for oil and gasoline at PVOIL and COMECO petrol stations through the MoMo app. Then the payment will be applied nationwide on November 1.

The partnership is aimed at boosting cashless payments in line with the Government’s Resolution 02, dated January 1, 2019, to promote noncash payments for public services.

“Currently, PVOIL sells some 5,000 cubic metres of fuel per month with noncash payments by scanning QR codes,” said PVOIL General Director Cao Hoai Duong. He expecting the figure to increase to 10,000 cubic metres in the next six months thanks to the rising number of customers opting to make payments with the MoMo app.

In February 2018, PVOIL launched the PVOIL Easy program, offering firms the noncash payment method at its petrol stations, using the QR Code scanning system. Some 80 per cent of PVOIL’s corporate customers have switched to the easy noncash payment method.

As one of Viet Nam’s leading fuel traders in Viet Nam, PVOil runs over 3,000 gas stations nationwide, accounted for 20 per cent of the market.

With the cooperation, customers who use MoMo e-wallet to pay for petrol and oil at PVOIL and COMECO petrol stations nationwide will receive a 50 per cent refund (not exceeding VND30,000, equivalent to about 1.5 litres of gasoline).

To pay with MoMo e-wallet, customers use the function "Scan code" and scan QR Code provided by the staff of PVOIL and COMECO.

International coffee exhibition attracts over 80 brands

A wide range of tea and coffee products and machinery, equipment, and materials to make coffee, other beverages and sweet foods will be on display at the 2019 Coffee Expo Vietnam in HCM City next week.

The Coffee Expo Vietnam will feature 80 brands from eight countries and territories, including Nescafe, Vinacafe, King Coffee, Phat Thanh, Mercon, La Viet, Shin Coffee, and leading suppliers of tools, machines and dispensing equipment like Victoria Arduino, Melitta, Rancilio, Gagia, Vocanol, JBU, and Sieuthicaphe.

Premium brands in the raw materials industry such as Foodclub, Annam Professional, Dotea, Vovos, and Tan Nhat Huong will also be present at the exhibition.

There will also be several concurrent events like the Vietnam Super Barista contest, the International Coffee Roast Master Championship and training sessions for baristas and people working for coffee shops, bakeries, restaurants, and hotels.

At this year’s Vietnam Super Barista Contest, contestants will compete for prizes of nearly VND200 million (US$8,665) and the champion will be sponsored by Coex Vietnam to participate in the 2019 World Super Barista Championship in Seoul, Korea.

The second International Coffee Roast Master Championship aims to select the most elite roaster in Viet Nam to attend the World Roast Master Tournament in Bangkok next March.

Organised by Coex Vietnam, the Viet Nam Coffee and Cocoa Association and Vinexad, the annual expo will showcase sources of high-quality materials and provide a platform for domestic and foreign companies to network and explore business opportunities.

To be held at the Saigon Exhibition and Convention Centre from October 31 to November 2, the event is expected to attract more than 30,000 visitors from Viet Nam and neighbouring countries.

E-commerce training key to boost performance of SMEs

Businesses, especially small and medium-sized enterprises, looking to use e-commerce to boost their performance need to train their workforce and make use of data analysis and online marketing resources, experts told a conference in HCM City on Thursday

Nguyen Thi Minh Huyen, deputy general director of the Viet Nam E-commerce and Digital Economy Agency, said e-commerce is growing rapidly in Viet Nam.

Viet Nam is in fact one of Southeast Asia's fastest growing market, with its young population and high internet usage rate, she said.

The basic legal framework for e-commerce is in place and many trading platforms are being established, and e-commerce is becoming a great tool for businesses to grow, especially those looking at cross-border trade, she said.

Pham Do Duy of her agencys international co-operation department, said last year around 39.9 million people in Viet Nam shopped online, up from 30.3 million in 2015.

The value of online shopping has also been rising over the years, and more and more businesses have webpages or apps for e-commerce.

Mark Deng, project director of the Vietnamese cross-border e-commerce platform Fado, spoke about the problems Vietnamese SMEs face with regard to online retail.

He listed an unwillingness to make investments, inadequate promotion and not knowing how to make best use of their resources.

To utilise e-commerce platforms well, businesses need a comprehensive vision and strategies, know e-commerce thoroughly and operate based on gathering and analysing data, he said.

They also need to focus on training their workforce in doing business online, communications, international trade, and data analysis and on using online marketing tools, customer service and building brands, he said.

Fado, an authorised partner of Chinese e-commerce platform Alibaba in Viet Nam, could assist businesses that join Alibaba with training, consultancy and other support, he said.

More reforms needed to up competitiveness: experts

VIETNAM BUSINESS NEWS HEADLINES OCTOBER 25



Despite Viet Nams rise in the global competitiveness index, further reforms are needed to achieve economic targets set by the Government, speakers said at a meeting held on Thursday in HCM City.

Nguyen Minh Thao, head of the Central Institute for Economic Management (CIEM)s Business Environment and Competitiveness Committee, said that Viet Nam had jumped 10 places to 67th in the global competitiveness index, with 61.5 points, a rise of 3.5 points compared to last year.

“This is the first time Viet Nam has made it into the first half of the list,” she said.

The Global Competitiveness Report 2019, which compared 141 countries, was published by the World Economic Forum (WEF). According to the report, Singapore this year overtook the US to become the most competitive nation in the world.

“The most significant reform of the business environment has been the reduction of conditional business lines, as well as the reduction and simplification of business conditions,” Thao said.

Other major reforms include the use of electronic transactions in administrative procedures and cashless payments, and in inspection methods.

Thao noted, however, that the business environment still “has many barriers as ministries and agencies compromise to abuse their management rights”.

“Business conditions are still the main obstacle,” she said. “Newly issued business regulations are not practical and go against the direction of the Government.”

Inspections conducted by authorised agencies are a major concern of businesses. “Some policy provisions are enforced differently among agencies, causing huge frustrations for businesses,” Thao said.

“Further reforms should include efforts to enhance competition to promote innovation, regulatory reform to improve allocation efficiency, and new plans to use public resources more effectively,” she added.

Nguyen Van Duc, deputy head of the legal department at the Viet Nam Chamber of Commerce and Industry 's branch in HCM City, said the Government had launched e-government and promoted the digital economy while supporting a start-up ecosystem.

It has also been helping cities and provinces increase competitiveness indices. “Its important to accelerate growth in private sector employment, strengthen property rights, develop more competitive factor markets, and improve enforcement of competition policy,” he said.

The Global Competitiveness Index (GCI) is based on 12 pillars: institutions, infrastructure, information and communication technology adoption, macroeconomic stability, health, skills, product markets, labour markets, financial systems, market size, business dynamism, and innovation capacity.

The Global Competitiveness Reports competitive indicators include gross domestic product, quality of overall infrastructure, effect of taxation on incentives to invest, and the availability and quality of information and legislation.

Viet Nam is among the countries with the lowest risk of terrorism and among the most stable levels of inflation, according to experts.

As part of the Governments goal to improve the business environment, Prime Minister Nguyen Xuan Phuc has recently assigned ministries and relevant sectors to promote reforms for enterprises.

The PM has asked the Government Office to work with agencies to draft a plan on removing regulations related to business activities in the 2020-25 period, which must be submitted and issued by early next year.

Vietnam’s ease of paying taxes improves: World Bank

Thanks to the Government’s efforts to simplify tax compliance processes, Vietnam ranked 109th out of 190 countries and territories on ease of paying taxes in the World Bank’s Doing Business 2020 report (DB2020), up 22 places from the previous report.

Vietnam made paying taxes easier by upgrading the information technology infrastructure used by the General Department of Taxation, according to the World Bank.

The ranking was measured by the four component indicators - number of tax payments, tax payment time, total tax rate and post-filing index (VAT refunds and corporate income tax audits).

According to the report, Vietnam is expected to see improvements in most of the indicators in 2020 as compared to this year.
To be more specific, the time spent on tax payment would be cut from a hefty 498 hours in 2019 to 384 hours next year. Meanwhile, total number of tax payments will be reduced from 10 in 2019 to six next year and total tax rate is said to drop 0.2 percent to 37.6 percent in 2020.

The taxation department described the DB2020 report as a vivid illustration for the taxation sector’s efforts to cut tax procedures and improve administration reform so as to facilitate conditions for local people and enterprises to exercise their responsibility for the State budget./.

Vietnam reaps fruits in fighting IUU fishing

Since Vietnam received a “yellow card” warning from the European Commission (EC) in October 2017 on illegal, unreported and unregulated (IUU) fishing, the country has taken various measures to settle the problem and enjoyed positive results.

Right in November 2017, Vietnam finalized and passed the Fisheries Law, institutionalising EC’s recommendations on IUU fishing prevention.

Following the adoption of the law, a system of legal documents guiding its implementation were introduced, including two Government’s decrees, one decision by the Prime Minister and eight circulars from the Ministry of Agriculture and Rural Development (MARD).

Particularly, on May 20, 2019, Prime Minister Nguyen Xuan Phuc issued Decision No. 596/QD-TTg on the establishment of the National Steering Committee on IUU fishing prevention led by Deputy PM Trinh Dinh Dung, with members including leaders of relevant ministries, sectors and 28 coastal localities.

Commenting on the outcomes of the measures taken, MARD Deputy Minister Phung Duc Tien said that Vietnam has strived to realize four solutions suggested by the EC, including the completion of the legal framework, the installation of monitoring systems on fishing vessels to control theiroperation, law enforcement and origin tracing of aquatic products.

Tien said that so far, the country’s efforts in completing the legal system has been shown in the Fisheries Law 2017 and guiding documents, noting that all localities have been equipped with monitoring systems to supervise, check and manage fishing vessels’ operation.

Management boards of fishing ports have been active in tracing the origins of seafood, he said, adding that the MARD has classified the port system into two types to facilitate the work and included relevant storage facilities and refrigeration warehouses in its planning.

Communications activities have also been prioritised to boost fishermen’s awareness on respecting the 2017 Law on Fisheries and responsible fishing, the official noted.

According to the MARD, from the beginning of 2018, no Vietnamese ships have been found to fish illegally in the Pacific.

Meanwhile, localities have stepped up checks of fishing vessels leaving or docking at ports in line with regulations, particularly those on safety requirements. Some have even applied harsh punishments for violating vessels like revoking licences without further granting new ones. The patrol and inspection of major waters have also been effectively coordinated among law enforcement agencies at sea.

Between 2018 and now, the MARD has sent 18 working delegations at different levels to examine and direct anti-IUU activities at various localities.

Most recently, on November 17,replying to reporters’ questions related to the European Commission (EC)’s visit to Vietnam to assess the country’s efforts in implementing the EC’s recommendations on fighting IUU fishing, Foreign Ministry spokesperson Le Thi Thu Hang said officials from the Directorate General for Maritime Affairs and Fisheries (DG – MARE) will work in Vietnam from November 4-14. They are scheduled to make field trips to a number of localities to check the implementation of the warning.

Over the past time, Vietnamese agencies, localities and organisations have drastically implemented solutions to build a sustainable and responsible fisheries sector, and curb the IUU fishing on the basis of the EC’s recommendations, she highlighted.

Vietnam is willing to coordinate with the EC in combating IUU fishing, the official affirmed.

Meanwhile, the Directorate of Fisheries said Vietnam’s fight against the IUU has reaped noteworthy outcomes, including the legalization of international and regional regulations in the Fisheries Law 2017 and relevant instruction documents, and the improvement of awareness of fisheries management agencies at all levels, fishermen and enterprises about the importance of preventing IUU fishing.

The violation and illegally fishing by fishing vessels and fishermen in the waters of countries in the Pacific has ceased. Many provinces and cities have removed or reduced the number of fishing vessels and fishermen with illegal fishing in foreign waters.

The inspection and control of fishing vessels operating at sea and port inspections have initially made progress, while international cooperation activities in the field of fishing are promoted. Vietnam has been actively joining and implementing international treaties and conventions towards a modern, responsible and sustainable fishery./.

Ford to bring at least one new car to Vietnam every year

US carmaker Ford has said it is making every effort to bring at least one new model to Vietnam every year.

Speaking at the Vietnam Motor Show 2019, which opened in HCM City on October 23, Nguyen Ngoc Khuong, deputy general director of Ford Vietnam, said Ford currently has a diverse range of competitive products in the Vietnamese market, and is a leader in many of the SUV and commercial segments. It will continue its long journey in Vietnam with a commitment to expand investment and introduce at least one new product to Vietnamese consumers every year.

Next year the all-new five-seat Ford Escape will come to Vietnam and the concept version of this car is now being showcased at the Vietnam Motor Show 2019.

In addition to segment-leading vehicles such as the Ranger, Raptor and Explorer, Ford is also showing off some new models in the commercial and SUVs segments like the newly launched MPV Ford Tourneo seven-seater and the concept version of the all-new Ford Escape.

In the recent third quarter sales report, Ford capped the record with retail sales of 7,859 units, increasing by 55.4 percent year-over-year.

Three out of its six vehicles are segment leaders and have reported positive sales performances.

The 2019 Vietnam Motor Show is being held from October 23 to 27 at the Saigon Exhibition and Convention Center in District 7./.

Thanh Hoa province promotes trade in Russia

The People’s Committee of the central province of Thanh Hoa on October 23 opened a pavilion at the Hanoi-Moscow Complex in Russia to introduce its specialties as well as industrial and handicraft products to local consumers and businesses.

Addressing the launching ceremony, Vo Duy Sang, head of the provincial Party Committee’s Commission for Internal Affairs, highlighted the potential and strengths of Thanh Hoa in agriculture and craft, with a diverse range of traditional products made from environmentally-friendly materials.

The official pledged to help businesses to export local products to Russia, while expressing his hope that the pavilion will help connect Russian consumers and businesses with firms in Thanh Hoa.

On October 21, Sam Son city in Thanh Hoa and a Saint Petersburg district signed a memorandum of understanding on bilateral cooperation, which was the first deal inked between the district and a foreign locality.

The same day, the Thanh Hoa delegation attended a Saint Petersburg-Vietnam business forum to introduce the province’s potential in tourism and call for investment and cooperation from Russian partners./.

Binh Dinh works to bolster trade, investment links with US

A delegation from the central province of Binh Dinh introduced local economic and tourism potential and sought ways to boost trade and investment ties with US businesses during a working trip to the US from October 12 to 23.

At an investment promotion conference in Virginia on October 22, Vice Chairman of the provincial People’s Committee Phan Cao Thang highlighted Binh Dinh’s potential and strengths for US firms to invest in, including electronic component manufacturing, automobile supporting industry, seaport infrastructure, industrial park infrastructure, energy, tourism, forestry, and wooden products.

Home to Quy Nhon International Seaport, Binh Dinh is the nearest gateway to the East Sea for the Mekong sub-region. It also boasts favourable transport infrastructure by road, rail and air.

The province, part of the central key economic region of Vietnam, has an abundant workforce with low labour cost and good skills. Nine industrial parks and 63 industrial clusters have been developed there so far, and Binh Dinh is building the Nhon Hoi Economic Zone covering over 14,500ha into a development engine for the province, according to Thang.

He also underlined his locality’s potential for becoming a tourism hub in the coastal central region of Vietnam.

The official said the local administration will create the best possible conditions for enterprises to seek investment and business partnerships, and will support them during the investment process.

At the conference, US businesses showed their interest in some fields and the investment policies in Binh Dinh.

Marc Mealy, Senior Vice President for Policy at the US-ASEAN Business Council (USABC), said for the council’s members, Vietnam is an attractive investment destination due to its optimal investment climate.

He also highly valued the potential, strengths and investment environment in Binh Dinh, adding that he and US enterprises are looking at the province’s advantages in wooden product manufacturing and export.

Mealy said he will help promote connectivity between Binh Dinh’s wooden product manufacturers and US firms in the states of North Carolina and Massachusetts.

During the visit, companies from Binh Dinh also exhibited wooden and furniture products at High Point Market, the US’s leading home furnishings industry trade show, in North Carolina. The delegation also had a working session with the 3M Group to attract investment in the hi-tech industry./.

Deputy PM urges Thai group to accelerate pace of refinery project

Deputy Prime Minister Trinh Dinh Dung hailed the effective operation in Vietnam of the Thai group SCG at a reception for SCG’s President and CEO Roongrote Rangsiyopash in Hanoi on October 24.

The Deputy PM particularly praised the group’s efforts in ensuring the progress of the Southern Oil Refinery Complex.

Dung said the refinery project is expected to assist greatly with the development of related industries in Vietnam. Therefore, he urged the SCG to continue pushing forward with the construction of the project and keeping strict quality control while adhering to Vietnam’s laws on safety and environmental protection.

He said the SCG’s effective operation in Vietnam has contributed greatly to Vietnam’s socio-economic development, job generation and social welfare, thus becoming a symbol of the Vietnam-Thailand strategic partnership in the fields of economy, trade and investment.

 

The SCG leader thanked the Vietnamese government, ministries and local administrations for facilitating the group’s investment activities.

He affirmed that his group wants to expand its operation in Vietnam, noting that SCG is running 16 member companies, three representative offices and two joint ventures in Vietnam.

He reported that the group has implemented about 24 percent of the workload of the 3.7-billion USD Southern Oil Refinery Complex, which is 2 percent behind schedule.

He pledged that SCG will take measures to ensure the desired pace towards the goal of putting the complex into operation at the end of 2022.

According to Roongrote Rangsiyopash, the group is completing procedures to raise investment in the complex to 5.2 billion USD./.

State Treasury raises 4 trillion VND through G-bonds

The State Treasury has mobilised 4 trillion VND (172.38 million USD) through Government bond auctions on the Hanoi Stock Exchange (HNX).

Accordingly, the State Treasury offered seven-year and 30-year bonds each valued at 500 billion VND, 10-year and 15-year bonds each valued at 1.5 trillion VND.

A total of 500 billion VND was mobilised from seven-year bonds with an annual interest rate of 3 percent, down 0.57 percent from the auction on October 9.

Bonds with 10-year maturity raised 1.5 trillion VND with an annual interest rate of 3.56 percent, down 0.22 percent as compared with the October 16 auction.

Meanwhile, 1.5 trillion VND was collected via 15-year bonds with a yield rate of 3.75 percent, down 0.25 percent from the auction on October 16.

The State Treasury also raised 500 billion VND worth of 30-year bonds with an annual average yield rate of 4.65 percent, 0.55 percent lower than the previous auction on October 9.

So far this year, the State Treasury has collected over 170.18 trillion VND from G-bond auctions at the HNX./.

Bamboo Airways adds two more aircraft to its fleet

Bamboo Airways officially welcomed two Boeing 787-9 Dreamliner aircraft from its partner GE Capital Aviation Service (GECAS) in Singapore on October 24.

The aircraft will be put into operation in November this year.

The delivery is part of a long-term cooperation agreement between Boeing, GECAS and Bamboo Airways. Bamboo Airways plans to add more aircraft Boeing 787-9 Dreamliner to its fleet in 2020.

Along with wide-body planes, GECAS will continue to provide Bamboo Airways with two more Airbus A321neo, which are manufactured in Hamburg, Germany.

Dang Tat Thang, Standing Vice Chairman of Bamboo Airways, said the delivery of the Boeing 787-9 Dreamliner to his firm is an important milestone in its plan to expand its fleet, serving the goal of expanding the network of air routes, especially international routes.

The new aircraft play a key role in bringing Bamboo Airways closer to the goal of providing 5-star service on all flights, Thang said.

Bamboo Airways signed an agreement to purchase 30 wide-body aircraft Boeing 787-9 Dreamliner worth 5.6 billion USD. By the end of 2019, the airline's fleet will reach 30 aircraft, and is expected to grow to 100 by 2024.

Bamboo Aiways currently operates 28 domestic and international routes, and is hoped to provide service on 37-40 routes by the end of 2019, including regular international routes to the Republic of Korea, Taiwan (China) and other countries in Southeast Asia.

So far, the airline has conducted more than 14,000 safe flights with an average occupancy rate of 90 percent, and the on-time rate of 93.9 percent./.

Seminar talks renewable energy development

The Ministry of Industry and Trade (MoIT)’s Electricity and Renewable Energy Authority and the Belgian Embassy held a seminar in Hanoi on October 24 discussing renewable energy development.

The event aimed to look into the production and storage of renewable energy, national and internal grids, and the European Union (EU)’s support for sustainable energy development in Vietnam.

Belgian Ambassador to Vietnam Paul Jansen said the event will open up cooperation opportunities for the two countries’ firms in renewable energy field in the near future, adding that the EU and Belgium are ready to share experience with Vietnam and connect businesses together.

Vice Director General of the authority Do Duc Quan said the MoIT has proposed the Prime Minister issue mechanisms to facilitate the development of wind, biogas, solar, and solid waste-fueled power.

Sales and Marketing Director of John Cockerill Group Eric Franssen said Vietnam holds potential for renewable energy development such as waste in industrial parks and biogas heat.

He said the group could assist Vietnam in biogas power production, adding that it is also able to separate hydrogen from water via electrolysis to provide energy for vehicles.

According to him, both sides could also partner in wind power production.

A representative from DEEP C Green Energy Company said there are enough radiation in the north to build solar power plants../.

Vietnam seeks to boost fruit-vegie- flower exports to Asia, Europe

Asia and Europe are important markets for Vietnamese fruits and vegetable exports and imports, and flowers could be next, experts said at a seminar on “Fruit, vegetable and flower exports - New movements in Asian and European markets” in Hanoi on October 24.

Statistics released at the seminar showed that Vietnam’s fruit and vegetable exports grew from 829 million USD in 2012 to 1.47 billion USD in 2014, and to 2.4 billion USD in 2016 before reaching a record of 3.86 billion USD last year, surpassing many other agricultural products.

By negotiating and signing 16 free trade agreements, including the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (IPA) in June, many opportunities are opening for the export of agricultural, forestry and fishery products, including fruits and vegetables, said Le Thanh Hoa, Deputy General Director of the Agro Processing and Market Development Authority under the Ministry of Agriculture and Rural Development.

This will be a good opportunity for the expansion of Vietnam's fruit and vegetable export markets in the global production, processing and supply chain, he said.

To seize this opportunity, the whole industry needs to change its perception, actively seek directions to be able to integrate and better meet market regulations, improving the status of Vietnamese agricultural products, Hoa said.

To achieve this, companies must equip themselves with market knowledge, updated technology, improve product quality and network with global supply chains, he added.

Le Thi Mai Anh, a representative from the Asia-Africa Market Department under the Ministry of Industry and Trade, said fruit and vegetable exports of Vietnam to Asian markets made up 85 percent of total export turnover, including top Asian markets such as China, the Republic of Korea, Japan, Southeast Asia and Taiwan.

On the advantages of exporting to Asian markets, Anh emphasised the geographical location which shortened time for transport. She also said Asian markets had a large population scale with high market demand and similar consumption habits.

Regarding difficulties, she mentioned strict regulations on hygiene and food safety standards, and complicated risk assessment processes.

Other difficulties included weak competitive capacity and quality of Vietnamese fruit and vegetables; and limited knowledge on foreign markets.

Vietnam’s fruit and vegetable sector achieved a trade surplus of 1.4 billion USD in the first nine months of this year with export revenue of 2.8 billion USD, reported the Vietnam Fruit and Vegetable Association.

The export revenue in the nine months dropped 5 percent compared to the same period last year, while the import revenue rose 7 percent./.

Poultry processing plant inaugurated in Thanh Hoa

A poultry slaughterhouse and processing factory was opened in the central province of Thanh Hoa on October 24.

Covering an area of 5.3 ha in Hoang Hoa district, the 300-billion-VND (over 12.9 million USD) project was jointly invested by Phu Gia Agricultural Products JSC (Phu Gia JSC) and Master Good Group of Hungary.

The plant is equipped with modern equipment and technologies from Hungary. It has a capacity of 4,500 chickens per hour (or 40 tonnes per day).

The factory's waste treatment area also uses modern technology in connection with a fish farming zone to test the safety of wastewater.

The plant is expected to create stable incomes for workers and produce high value-added agricultural products. Poultry products produced at the plant will be exported to Japan, the Republic of Korea, Hong Kong and Taiwan (China), Singapore and European countries.

It could expand cooperation in agricultural development between Vietnam and Hungary, and promote Thanh Hoa's agricultural products to the global market.

Phu Gia JSC has also cooperated with Master Good Group to build a chicken breeding chain for export as part of efforts to promote modern husbandry development models and join global product supply chains./.

Further reforms are needed to boost competitiveness: experts

Despite Vietnam’s rise in the global competitiveness index, further reforms are needed to achieve economic targets set by the Government, speakers said at a workshop in Ho Chi Minh City on October 24.

Nguyen Minh Thao, head of the Central Institute for Economic Management (CIEM)’s Business Environment and Competitiveness Committee, said that Vietnam had jumped 10 places to 67th in the Global Competitiveness Index (GCI), with 61.5 points, a rise of 3.5 points compared to last year.

The Global Competitiveness Report 2019, which compared 141 economies, was published by the World Economic Forum (WEF). According to the report, Singapore this year overtook the US to become the most competitive nation in the world.

The most significant reform of the business environment has been the reduction of conditional business lines, as well as the reduction and simplification of business conditions, Thao said.

Other major reforms include the use of electronic transactions in administrative procedures and cashless payments, and in inspection methods.

Thao noted, however, that the business environment still “has many barriers as ministries and agencies ‘compromise’ to abuse their management rights”.

Business conditions are still the main obstacle, she said, adding that newly issued business regulations are not practical and go against the direction of the Government.

Inspections conducted by authorised agencies are a major concern of businesses. “Some policy provisions are enforced differently among agencies, causing huge frustrations for businesses,” Thao said.

“Further reforms should include efforts to enhance competition to promote innovation, regulatory reform to improve allocation efficiency, and new plans to use public resources more effectively,” she added.

Nguyen Van Duc, deputy head of the legal department at the Vietnam Chamber of Commerce and Industry (VCCI)’s Branch in HCM City, said the government had launched e-government and promoted the digital economy while supporting a start-up ecosystem.

It has also been helping cities and provinces increase competitiveness indices.

“It’s important to accelerate growth in private sector employment, strengthen property rights, develop more competitive factor markets, and improve enforcement of competition policy,” he said.

The Global Competitiveness Index (GCI) is based on 12 pillars: institutions, infrastructure, information and communication technology adoption, macroeconomic stability, health, skills, product markets, labour markets, financial systems, market size, business dynamism, and innovation capacity.

The Global Competitiveness Report’s competitive indicators include gross domestic product, quality of overall infrastructure, effect of taxation on incentives to invest, and the availability and quality of information and legislation.

The workshop was jointly organised by the Central Institute for Economic Management and Aus4Reform./.

VIETNAM BUSINESS NEWS HEADLINES OCTOBER 25

Asia Pacific's biggest Industry 4.0 opens in Singapore, focusing on solutions

Industrial Transformation Asia-Pacific (ITAP) 2019, the biggest Industry 4.0 event in the region, opened its doors at the Singapore Expo on Tuesday with 350 exhibitors from more than 30 countries.

At this year’s event, companies can find out how to optimise the appropriate technology, process and get the best out of people to achieve growth. This is meaningful as world trade tensions rise, slowing Chinese economic growth and uncertain Eurozone which cast a shadow on a strained economic growth.

“Whether companies are big or small, they need to advance on transformation journey,” said Singapore’s Deputy Prime Minister Heng Swee Keat at the opening.

He emphasised new technology and 3D printing had enabled companies to produce cost effectively and in a shorter space of time.

Technology had brought disruption to many areas, including farming and job creation and the transformation was more acute when taking place when the economy was facing significant headwinds, the Deputy PM said.

He said: “Southeast Asia is well-positioned to be a regional manufacturing powerhouse and the home for factories of the future.”

But to realise this potential, ASEAN must work together to attract and build regional capabilities, Keat said.

Growth in the region continued to outperform the global expansion in real GDP term and by 2030, ASEAN is projected to be the 4th largest single market after the US, China and EU. Keat said many countries in the ASEAN region are implementing plans to drive innovation in manufacturing and adoption of technology, including Indonesia, Malaysia and Viet Nam.

ITAP, the regional edition of the iconic Hannover Messe – the world’s leading trade show for industrial technology - offers various platforms for key stakeholders in the technological ecosystem to collaborate and exchange understanding of the future of manufacturing and the adoption of Industry 4.0 solutions.

“With the comprehensive personalised learning opportunities provided for the attendees, the show will help them – especially beginners and early adopters – find the right fit for Industry 4.0 solutions with their stage of business development,” said Aloysius Arlando, CEO of SingEx Holdings – the event organiser.

Small and medium enterprises (SMEs) would find a support system where industry players can provide customisable and cost-effective solutions to help them optimise manufacturing processes or reinvent business models that satisfy client demand and expand into new markets, Arlando said.

The manufacturing industry today faces very different challenges compared to only a few years ago, according to Dr. Jochen Kockler, CEO of Deutsche Mess AG.

“Customers want individualised products and same-day delivery at lower prices. In order to remain competitive in the global marketplace, companies need to embrace digitalisation,” Kockler said.

Piera Man, a representative of ABB – a major global player in industrial manufacturing – told Viet Nam News: “We have solutions for large and small companies, with specific area for SMEs to show concrete type of solutions with affordable cost.”

Man said from just US$50-100, a company could apply digitalisation and improve smartness of their operation. She said ABB ability smart censor – a smart wireless monitoring device – for example, is priced $52.

At the event, Singapore Agency for Science, Technology and Research (A*Star) introduced its new technology for hyper-personalised manufacturing for fast-moving consumer goods (FMCG) sector.

This type of production line allows manufacturers to steer production from mass to higher level where certain features of the product could be selected.

A*Star also kicked off a new $38 million industry initiative to develop advanced manufacturing technology for companies to digitally transform their processes to bring hyper-personalisation to customers.

ITAP 2019 will end on Thursday. It is organised by SingEx Exhibitions and international partner, Deutsche Messe with support from the Singapore government agencies such as A*Star, Economic Development Board Singapore (EDB), Enterprise Singapore (ESG), JTC Corporation and Singapore Tourism Board (STB).

VPBank buys back 50 million shares

Viet Nam Prosperity Joint Stock Commercial Bank (VPBank) has purchased back 50 million shares, according to the the Ho Chi Minh Stock Exchange (HoSE).

VPBank (VPB) spent VND1.1 trillion (US$47 million) to buy the shares.

VPBank's leaders said that the purchase aims to stabilise VPBank's stock price.

The credit segment contributed VND7.97 trillion to the net profit of VPBank in Q3, up 33 per cent.

Meanwhile, the service segment contributed VND708 billion to the net profit, up 77 per cent.

On the contrary, the foreign exchange segment recorded a net loss of VND81.4 billion.

In Q3, VPBank recorded VND6.37 trillion in net profit, an increase of 42 per cent over the same period last year. After deducting provision expenses, pre-tax profit reached VND2.85 trillion, up 63 per cent.

In 9 months, the bank's pre-tax profit was VND7.19 trillion, up by 18 per cent.

Gemadept to pay $19.12 million in dividends

Logistics firm Gemadept Corporation (Gemadept) will close the list of shareholders to pay dividends in cash at a rate of 15 per cent on November 15.

As shareholders will receive VND1,500 (US$0.06) per share, Gemadept will spend about VND445 billion ($19.12 million) on dividends for nearly 297 million shares.

Last year, Gemadept‘s revenue fell by 32 per cent at VND2.7 trillion ($116.3 million), while profit after tax was 3.2 times higher, reaching VND1.9 trillion ($81.6 million) thanks to a surge in interest in 2018 mainly due to profit from the sale of its subsidiaries in 2018.

Gemadept reported net sales of VND1.3 trillion ($55.7 million) and profit after tax of VND347 billion ($14.9 million) in the first half of 2019.

Ha Noi People's Committee divests from Haneco

Ha Noi People's Committee will divest more than 1 million shares from Haneco Import and Export Joint Stock Company on November 1.

The total 1,130,710 shares, accounting for 97.56 per cent of the company's charter capital, will be offered at an initial price of VND 11,900 ($0.51) each.

Haneco was established in 1993 by the Ha Noi People's Committee. In 2016, the company transformed into a joint stock company, specialised in trading raw materials for the animal feed industry, such as soybean meal, corn and rice bran. The company also provides labour services in the city.

The company's net revenue remained stable and had slight growth from VND 377 billion ($16.2 million) in 2017 to VND 384 billion ($16.5 million) in 2018. The company’s profit after tax was about VND 1.1 billion ($47,295) for each year. 

ABBANK reports $36.97 million profit in first nine months

An Binh Commercial Joint Stock Bank has reported a pre-tax profit of VND856 billion (US$36.97 million) for the first nine months of the year, a 30 per cent increase over the same period last year.

Earnings from interest were worth VND1.82 trillion ($78.6 million), an increase of 17 per cent.

Its net profit from services was worth VND117 billion.

Non-performing loans continued to be under 3 per cent in accordance with State Bank of Vietnam regulations.

It had deposits of over VND67.65 trillion ($2.9 billion) at the end of September and loans outstanding of more than VND52.35 trillion ($2.2 billion), up 13 per cent and 15 per cent from a year earlier.

Its return on assets was 1.3 per cent and return on equity was 16.2 per cent. Its capital adequacy ratio was 11.1 per cent.

 
 

Other News

.
Japan's economy shrinks at fastest rate since 2014
Japan's economy shrinks at fastest rate since 2014
BUSINESSicon  17/02/2020 

The world's third largest economy was hit by a sales tax rise, a destructive typhoon and weak global demand.

VN firms seek new raw material sources
VN firms seek new raw material sources
BUSINESSicon  17/02/2020 

Vietnamese companies, many of whom are facing a shortage of feedstock and raw materials as a result of the new coronavirus (COVID-19) outbreak in China, have started looking at alternative sources.

Coronavirus causes transport companies losses
Coronavirus causes transport companies losses
BUSINESSicon  17/02/2020 

Transport companies have been hit hard by the novel coronavirus (COVID-19).

Vietnam needs to find new rice markets to replace China: experts
Vietnam needs to find new rice markets to replace China: experts
BUSINESSicon  17/02/2020 

Since the novel coronavirus (Covid-2019) epidemic will surely affect exports to China, diversifying markets is an urgent requirement for Vietnamese rice exporters, experts have said.

Citibank and INGbank to provide credit to Nhon Trach power projects
Citibank and INGbank to provide credit to Nhon Trach power projects
BUSINESSicon  17/02/2020 

Citibank and INGbank will be in charge of arranging capital for the Nhon Trach 3 and 4 thermal power plants, according to a recent agreement signed between PetroVietnam Power Corporation (PV Power) and the two foreign banks.

Trading remains quiet amid risk concerns
Trading remains quiet amid risk concerns
BUSINESSicon  17/02/2020 

Brokerage firms and market experts remain pessimistic about market trading this week as investors run out of supportive information while international stocks continue to be weighed down by the novel coronavirus (COVID-19).

New document released to regulate use of non-residential real estate
New document released to regulate use of non-residential real estate
BUSINESSicon  17/02/2020 

The Ministry of Natural Resources and Environment (MoNRE) has sent a document to local departments to regulate the use and certification of non-residential real estate projects.

EVFTA brings chances and challenges to local agricultural production
EVFTA brings chances and challenges to local agricultural production
BUSINESSicon  17/02/2020 

The new trade agreement between Viet Nam and the European Union opens many doors for agriculture, according to experts.

Vinatex to provide 6 million face masks in February amid COVID-19
Vinatex to provide 6 million face masks in February amid COVID-19
BUSINESSicon  17/02/2020 

The Vietnam National Textile and Garment Group (Vinatex) is exerting efforts to produce around 6 million antibacterial face masks in February to meet increasing demand amid the novel coronavirus disease (COVID-19) outbreak.

VN banks more open for EU investors under newly-approved trade pact
VN banks more open for EU investors under newly-approved trade pact
BUSINESSicon  17/02/2020 

Investors from the EU will have opportunities to own higher stakes in Vietnamese banks than those from other countries under Việt Nam’s commitments in the EU-Vietnam Free Trade Agreement (EVFTA).

COVID-19: Border localities asked to resume trade with China
COVID-19: Border localities asked to resume trade with China
BUSINESSicon  17/02/2020 

Minister of Industry and Trade Tran Tuan Anh has asked Lang Son and Quang Ninh to resume imports, exports and transport of goods through three sub-border gates in the two localities after a suspension due to the outbreak of COVID-19.

Economic bailout package proposed
Economic bailout package proposed
BUSINESSicon  17/02/2020 

A bailout expected to be implemented by the government will contribute to helping the economy out of difficulties.

Airport funding plans on the way
Airport funding plans on the way
BUSINESSicon  17/02/2020 

Domestic and international private investors are expected to have fresh opportunities to join the long-awaited Long Thanh International Airport project in the near future, with the form of investment to be decided next month.

BUSINESS NEWS HEADLINES TODAY
BUSINESS NEWS HEADLINES TODAY
BUSINESSicon  15/02/2020 

Coronavirus outbreak hits 322 enterprises

Pharma giants seek to cash in on local market potential
Pharma giants seek to cash in on local market potential
BUSINESSicon  16/02/2020 

While several sectors are being hit by the coronavirus outbreak, the pharmaceutical and healthcare industry is taking an advantage, with numerous expansion strategies among players being placed in the gun barrel.

Stocks seen struggling next week as virus worries remain
Stocks seen struggling next week as virus worries remain
BUSINESSicon  16/02/2020 

Local stocks are forecast to struggle in a narrow range next week as investors are still uncertain about the prospects of the market and especially businesses hit by the coronavirus outbreak.

Strict sanctions imposed on importers of autos with illegal maps
Strict sanctions imposed on importers of autos with illegal maps
BUSINESSicon  16/02/2020 

Enterprises that import automobiles equipped with navigation apps featuring maps that violate Vietnam’s sovereignty will have their import licenses suspended.

Vietnam’s economy to expand 6.25% if coronavirus outbreak ends in Q1
Vietnam’s economy to expand 6.25% if coronavirus outbreak ends in Q1
BUSINESSicon  15/02/2020 

Vietnam’s GDP growth is expected to reach 6.25% this year if the outbreak of Covid-19 is contained within the first quarter, according to the Ministry of Planning and Investment.

Apparel firms scramble to make mask production amid coronavirus spread
Apparel firms scramble to make mask production amid coronavirus spread
BUSINESSicon  16/02/2020 

Many textile and garment businesses are scrambling to make face masks given the coronavirus outbreak-triggered lack of surgical masks.

Vietnam’s estate companies seek investment opportunities in foreign markets
Vietnam’s estate companies seek investment opportunities in foreign markets
BUSINESSicon  15/02/2020 

More and more domestic real estate firms have begun to seek investment opportunities in global markets, according to Savills Vietnam.

 
 
 
Leave your comment on an article

OR QUICK LOGIN