More than 150 enterprises have successfully issued bonds worth total VND179.1 trillion (US$7.7 billion) in the first nine months of this year, a report on the Ha Noi Stock Exchange bond market revealed on Tuesday showed.

The nine-month value is equal to nearly 80 per cent of the total bond issuance value in 2018.

The figure is also lower than the total registered value of nearly VND276.9 trillion (nearly $12 billion), which means nearly VND98 trillion bonds were unsold.

In September, 28 companies made 60 issuances with total capital raised of VND19.4 trillion (excluding international bond issues). Most bonds were three-year term with total value of VND13.5 trillion.

Interest rates of bonds issued in September ranged between 6 per cent and 11 per cent per annum.

Banks were the main player in the bond market with total issuance value of VND14.1 trillion in September, accounting for 72.78 per cent of total market value. Real estate companies followed with VND965 billion (4.97 per cent) and securities firm with VND413 billion (2.13 per cent).

Bonds issued by banks also had the lowest interest rate, averaging only 6.71 per cent per year.

Some companies with big issuance value in September included Techcombank (VND5 trillion), Orient Commercial Joint Stock Bank (VND1.7 trillion), Asia Commercial Bank (VND1.6 trillion), Sai Gon-Ha Noi Bank (VND1.45 trillion), Sovio Holdings (VND1.1 trillion), Ho Chi Minh Development Bank (VND912 billion), Phu My Hung Development Corporation (VND900 billion) and Vietravel (VND700 billion).

According to a report by Saigon Securities Inc, instead of focusing on two- or three-year term bonds as in previous months, in the last two months banks had been stepping up to issue bonds with longer maturity such as five-year, seven-year and 10-year terms.

Longer-term bond issuers included Vietinbank, Bank for Investment and Development of Vietnam (BIDV) and Southeast Asia Commercial Joint Stock Bank (SeABank).

In September, Vietnam Prosperity Bank (VPBank) was the only enterprise to issue bonds internationally worth $300 million.

PM approves plan to boost sustainable growth of private sector

Prime Minister Nguyen Xuan Phuc has approved a plan to boost the sustainable development of the private business sector towards 2025 with a vision to 2030 with six major solutions.

The solutions include continuing to improve the investment and business environment to ensure trust and promote the sustainable operation of private firms, encouraging businesses to apply sustainable models and cleaner production technology, and saving natural resources and protecting the environment.

The plan underlines the promotion of innovative startups and the effective implementation of policies supporting small and medium sized enterprises, as well as increasing the capacity of governing and business management boards.

Private firms will be encouraged to apply advanced technologies and exploit opportunities brought about by the Fourth Industrial Revolution, while business associations will play a greater role in assisting private companies to develop in an efficient and sustainable manner, according to the plan.

The solutions are designed to increase the quality and efficiency of private businesses, creating a firm foundation and important motivation for national socio-economic development.

The plan targets at least 1.5 million firms by 2025 and 2 million by 2030, as well as stronger connectivity among private firms.

In 2030, the gap in technology, human resources and competitiveness among businesses is expected to have reduced, while the ratio of firms joining regional and global production and value chains is hoped to match those in leading ASEAN countries (ASEAN 4).

The plan targets that in the 2021-2030 period, the private sector will see 6-8 percent expansion in the number of employees per year, while the average growth in income of labourers is expected to reach 25-30 percent per year. The sector’s contribution to the State budget is also hoped to increase 23-25 percent annually.

The PM asked ministries, sectors and localities to integrate the solutions into national target programmes to optimize resources.

The People’s Committees of provinces and cities were also requested to allocate human resources and an annual budget for the implementation of the solutions./.

Deputy PM addresses Vietnam Business Summit 2019

Deputy Prime Minister Vu Duc Dam affirmed that the Vietnamese Government always opens its door to foreign enterprises in his speech at the Vietnam Business Summit 2019 held in Hanoi on October 16.

He highlighted that Vietnam’s economic growth ranked second globally as announced by the World Bank, making the country a destination for many firms across the world.

The official suggested that businesses should pay attention to infrastructure, finance, banking, land as well as workforce training.

Vietnam is now ready for the fourth industrial revolution, he said, adding that the country has stepped up the aplication of information technology in diverse areas, with improving information safety and security.

President of the Vietnam Chamber of Commerce and Industry Vu Tien Loc said prestigious international organisations are optimistic about Vietnam’s economic growth. Up to 90 percent of domestic and foreign business community expressed their belief that business climate will become better in the near future.

As many as 130,000 enterprises were established or resumed operations in the first nine months of this year and 70 percent of foreign-invested firms planned to further expand operations in Vietnam, he said.

According to him, the Vietnamese Government has successfully launched an action programme to develop e-government and build infrastructure for a digital economy.

The information technology adoption index went up 54 places in the World Economic Forum’s rankings 2019 with increasing number of mobile phone subscribers and Internet popularity, boding well for software production and digital application in economic sectors, thus opening up opportunities for investors at home and abroad, Loc said.

Participants at the event discussed measures to digitise economic sectors such as finance, agriculture and production.

The event attracted over 800 delegates, including nearly 300 foreign ones who also attended the Asia Business Summit 2019./.

Summit backs super connected Asia for sustainable development

The 10th Asian Business Summit (ABS) in Hanoi on October 17 adopted a joint statement on a super connected Asia for sustainable development, showing the Asian business community’s commitment to the goal of inclusive, sustainable and prosperous development.

The annual summit, initiated by the Japan Business Federation (Keidanren) in 2010, is held on a rotational basis in big Asian economies.

This year’s event attracted leaders from 12 key economic organisations in Asian countries, including Japan, the Republic of Korea, India, Singapore, Malaysia, Thailand, China, Taiwan (China), the Philippines, and Vietnam.

At the press conference later the same day, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc, who also co-chaired the 10th ABS, said the summit shared the view that close cooperation among economies in the region is key to sustainable and inclusive development.

Its joint statement features content about a digital Asia which mentions growth strategies for promoting development and reform, and the building of a society that is smart in terms of agriculture, health care, urbanisation and environment to ensure sustainable development.

Meanwhile, the section on a global Asia talks about global value chains and free trade which are necessary to boost the comprehensiveness in economy and infrastructure and human resources development through the enhancement of regional cooperation, Loc noted./.

Exhibition on mechanical engineering industry opens in Hanoi

The 7th International Precision Engineering, Machine Tools and Metalworking Exhibition & Conference (MTA Hanoi 2019), themed “We are Industry 4.0 ready!”, opened at the International Centre of Exhibition in Hanoi on October 16.

The three-day event will showcase products and advanced technologies from around the globe relevant to the mechanical engineering sector.

It offers a chance for domestic firms to meet and cooperate with suppliers from 15 countries and territories, including those from the Republic of Korea, Japan, Hong Kong, Taiwan, Singapore, Germany, the UK and the US, said BT Tee, general manager at Informa Markets, one of the event’s organisers.

A conference discussing the manufacturing industry in Vietnam and “Made in Vietnam” goods and another on mechanical engineering firms in the context of Industry 4.0 will be held on the sidelines of the event.

Last year’s event recorded more than 5,000 visitors from 15 countries and regions and 308 delegations, marking an increase of 37.5 percent in comparison with the previous edition./.

Aquaculture Vietnam 2019 kicks off in Can Tho

The Aquaculture Vietnam 2019 opened in the Mekong Delta city of Can Tho on October 16, drawing more than 100 firms of over 20 countries and territories.

The international exhibition and conference on Vietnam’s aquaculture sector, the second of its kind, is jointly held by UBM Asia Ltd which is an affiliate of Informa Markets Asia, the Vietnam Fisheries Society (VINAFIS) and the International Collaborating Centre for Aquaculture and Fisheries Sustainability (ICAFIS).

During the event, new technology and services for the fisheries sector will be introduced while several conferences will be held with the participation of many experts to give firms the chance to introduce their products and services to customers.

In her opening remark, UBM Asia’s Group Director Rose Chitanuwat said Vietnam holds huge potential and has reaped fruitful results in the aquaculture sector.

The Aquaculture Vietnam 2019, running until October 18, will draw more than 6,000 visitors.

According to the VINAFIS, in the first six months of this year, Vietnam’s aquaculture output reached 1.92 million tonnes, up 7 percent year on year and equivalent to 100.7 percent of the target.

Notably, shrimp production hit nearly 290,000 tonnes, equivalent to 108.8 percent of the result in the same time last year and fulfilling 33.7 percent of the yearly target. Meanwhile, tra fish output was 684,000 tonnes, 45.2 percent of the goal for the year.

Fisheries exports in the period fetched 4 billion USD, up 0.6 percent year on year. Export revenue of shrimps was 1.43 billion USD, followed by tra fish at 991 million USD and tuna at 380 million USD./.

Petrol prices slightly drop after recent hike

The retail prices of petrol were reduced as from 3pm on October 16, following a hike earlier this month.

Specifically, the price of E5 RON92 was down 310 VND to 19,470 VND (0.84 USD) per litre at the highest, and that of RON95-III also fell by 271 VND to 20,795 VND per litre.

Meanwhile, the prices of diesel 0.05S and kerosene were capped at 16,223 VND and 15,258 VND per litre, dropping 415 VND and 528 VND per litre, respectively. Mazut 180CST 3.5S is sold at no more than 12,816 VND per kilogramme, down 2,103 VND per kg.

The Ministry of Industry and Trade and the Ministry of Finance review fuel prices every 15 days to adjust domestic prices in accordance with fluctuations in the global market.

According to the two ministries, the average prices of petrol and oil in the world market declined in the 15-day period before the latest price review, attributed to this time's reduction./.

New foreign accounts hit 7-month low

The number of new foreign accounts was just 275 in September, the lowest in seven months, data of the Vietnam Securities Depository (VSD) showed.

The figure was down from 363 recorded in August.

Domestic accounts fell too, from 17,742 in August to 16,241 in September.

In September, total 16,590 trading accounts were opened at the VSD, raising the total number to near 2.34 million.

The decline of new trading accounts on the Vietnamese stock market matches the volatility of the domestic indices last month.

The benchmark VN-Index in September struggled between 990 points and 1,000 points amid strong foreign selling.

Key international developments such as the US-China trade war, the geo-political tension in the Middle East and Brexit were attributed for the market’s volatility.

In September, foreign investors net sold US$130 billion worth of Vietnamese shares.

Vietinbank continues second-tranche $43m bond issuance this month

By the end of this October, Vietinbank will issue the second tranche of its bond issuance this year worth VND1 trillion (US$43 million).

The bond has the par value of VND10 million and has two terms, including seven years and 10 years.

This offering is part of Vietinbank’s plan for bond issuance with total value of VND5 trillion in 2019. The bank successfully sold VND4 trillion bonds last month.

The yield of seven-year bonds is equal to the reference interest rate plus 1 per cent per annum and for 10-year bonds is additional 1.2 per cent per annum. The reference interest rate is the average deposit rates of 12-month savings of four banks including Vietinbank, Vietcombank, BIDV and Agribank.

The issuance aims to supplement working capital for the bank and ensure adequate capital for lending to the economy. The sale takes place during October 7 and October 29.

With the proceed of VND5 trillion from the two issuances, Vietinbank will disburse VND1.5 trillion for loans in the energy sector, VND1.4 trillion into construction material, VND500 billion into construction and the remaining into other fields.

All of these bonds will be listed on the stock exchange.

In a related development, the Bank of Tokyo-Mitsubishi UFJ, a commercial banking subsidiary of Mitsubishi UFJ Financial Group which holds nearly 20 per cent capital of Vietinbank, said it expected Vietinbank to complete its capital hike plan as soon as possible.

It the meeting with Vietinbank’s leaders on Tuesday, Masaaki Suzuki, representative of the Japanese bank, said it has supported Vietinbank’s all efforts in accelerating the capital raising process.

SeABank ups capital to US$403 million

The Southeast Asia Joint Stock Commercial Bank (SeABank) in September raised its charter capital to near VND9.37 trillion (US$403 million) from previous VND7.7 trillion.

The new capital volume makes SeABank among the 15 largest banks by charter capital in Viet Nam, the bank said in a statement.

SeABank aims to become the most favourite retail bank in the market with the share issuance.

The issuance will help improve the bank’s financial capability, expand its network, improve technology and facilities, and diversify products and services to meet the demand of customers.

SeABank now has total of 165 offices in the country.

In the first six months of the year, the bank earned VND409 billion worth of pre-tax profit, up 57.4 per cent year on year.

Total assets rose 6.1 per cent from last year’s figure to near VND150 trillion. Total lending was up 8.2 per cent in six months to VND95.2 trillion.

The bank is well-known for its renovation efforts to provide customers with high-quality individual financial products and services.

Conference considers reward strategies for firms to attract, keep talent

How to create a reward strategy that could attract and retain talent and how to align it with the business strategy and organisation values in the industry 4.0 era were on the agenda of the first Vietnam Rewards Summit in HCM City on Tuesday.

Delegates said industry 4.0 technology brings businesses opportunities but also challenges, requiring them to adjust their operation processes and business strategies based on evolving requirements.

“But no matter how far technology develops, the emotional factor is always an important foundation,” Le Thu Thuy, CEO of SeaBank, said.

Human resources are always a top priority, and how to align the human resources strategy with business strategies to leverage business growth is a concern in the digital age, according to Thuy.

Speaking about her experience in building an efficient rewards strategy, she said positioning the corporate culture and enabling an innovative growth mindset in every employee are very important.

The culture is the "soul" of every business, and stems from every employee in that organisation, and HR and the CEO's mission is to create a working environment and build a corporate culture where every employee feels happy, respected and listened to and is given the opportunity to develop to their fullest potential.

Quyen Le, cluster HR business partner director, Coats Phong Phu, said HR strategists needed to understand their organisation's business strategies and priorities, and understand the demand and desires of their existing and future employees and their priorities, thereby developing a rewards strategy that harmonises both companies and employees’ top priorities.

She said the remuneration policy must be consistent and connected with the organisation's core values, and have a positive impact on the business strategy.

Secondly, the remuneration strategy should be competitive, fair and flexible, along with transparent and open communication with employees, she said.

In addition, the effective use of rewards funds, constant updating of the market benchmark and improving remuneration strategies to meet employees’ needs were also indispensable in building a smart remuneration framework, delegates said.

Many people think an attractive salary would attract and keep talent, but it was not enough, Nguyen Thi Quynh Phuong, director of executive search and selection at Talentnet, said.

"Besides the salary, factors like bonus, rewards, opportunity to grow their career in the company, and the company having a positive impact on society and the environment are also very important to attract and retain talent, especially young people," she added.

Remuneration survey

The event also saw the release of Talentnet – Mercer’s remuneration survey report results covering data from 16 industries and 543 multinationals and 62 large local companies with over 342,000 employees.

The report covers salary increases, common allowances, bonuses, employee turnover rates, and other data.

It found that the salary increase in 2019 was 8.6 per cent at multinational companies and 8.9 per cent at local businesses, higher than Viet Nam’s inflation and GDP growth rates.

Technology, chemical and trading were the sectors with the highest salary increases of 10.2 per cent, 9 per cent and 8.6 per cent.

Oil and mining, education and financial services-banking reported the lowest increases of 4.5 per cent, 6.6 per cent and 6.9 per cent.

In terms of bonuses, non-banking financial services and insurance topped with 30.4 per cent and 22.9 per cent of the annual base salary.

There was a remarkable increase in the bonuses paid in the agricultural sector (19.4 per cent).

Logistics, retail and education had the lowest bonus rates of 13.8 per cent, 14.8 per cent and 15.4 per cent.

The 2019 Vietnam Rewards Summit, organised by Talentnet Corporation, attracted over 600 local and foreign business leaders and HR professionals.

HCM City, Icheon look for co-operation in medical tourism

Co-operation opportunities for medical tourism between companies from HCM City and South Korea’s Incheon City were introduced at a medical conference held in HCM City on Tuesday.

The conference, which was organised as an activity under a co-operation agreement between HCM City and Incheon, attracted about 40 investors from Incheon and hundreds of investors and company representatives from HCM City.

More Vietnamese tourists are visiting South Korea and Incheon in particular to obtain medical treatment. Most of the tourists have general health checks and beauty surgeries as South Korea is the biggest plastic surgery market in the world, conference speakers said.

Speaking to Viet Nam News, Kwon Soon Cheol, president of the Incheon International Medical Council, said that Viet Nam is ranked 7th on the list of countries with tourists coming to Incheon for medical treatment.

"The Vietnamese market has a lot of potential and we hope that it will rank second or third soon," he said.

Incheon organises free tours for foreign patients, including those from HCM City, according to Cheol.

At the conference, representatives from HCM City introduced multiple investment incentives to attract foreign investors.

Nguyen Quang Huy, chairman of Viet - Han Kotra Industrial Compnay, said that Viet Nam had gained increased competitiveness after signing free trade agreements with other markets and that investing in HCM City has many advantages, especially because of the city's use of many modern technologies in 4.0 industry era.

“HCM City will be come a key area in ASEAN and the world, with many initiatives and technology trainers. So it will attract many large projects with advanced technology," he added.

During the event, businesses from the two cities shared experiences as well as information about advanced technologies in the healthcare sector as well as hospital and beauty salon development.

Representatives from Incheon companies and healthcare centres said they were ready to help Vietnamese doctors and technicians improve their skills.

On the occasion, a representative office of Inchoen City was opened in District 1 in HCM City. The office will act as the bridge connecting companies from the two cities.

According to HCM City’s Department of Tourism, the number of tourists coming to Viet Nam for medical treatment has surged year after year. Last year, about 300,000 foreigners came to Viet Nam to have medical treatment.

HCM City is actively promoting medical tourism in an effort to provide multiple services to foreign tourists, including those from South Korea.

Trade remedies authority receives investigation dossiers of Chinese and Indonesian MSG dumping

Trade Remedies Authority of Viet Nam, an investigation agency under the Ministry of Industry and Trade, said it officially received an investigation request dossier on applying anti-dumping measures on monosodium glutamate (MSG) products originating from China and Indonesia from domestic companies.

The Ministry said Vedan Viet Nam and Ajinomoto Viet Nam had filed requests and supported the investigation.

The investigating agency on Tuesday confirmed the dossier was valid and in accordance with the law on trade remedies.

The agency will have 45 days from the date of receiving the dossier, to appraise the report and to submit findings to the Minister of Industry and Trade for consideration whether to carry out further investigations.

Da Nang promotes growth of startup ecosystem

The central city of Da Nang has applied various measures to encourage individuals and organisations to join startup ecosystem towards the goal of becoming an innovative startup centre of the region.

Along with supporting startup businesses and the establishment of incubators, the city has built a project to develop the municipal startup ecosystem towards 2020 with a vision to 2030, along with a number of relevant projects.

According to Vice Chairman of the municipal People’s Committee Le Trung Chinh, the projects are part of the city’s efforts to realise the Politburo’s resolution on the city’s development towards 2030 with a vision to 2045, aiming to turn the city into one of the hubs for startup and innovation in the central and Central Highlands regions.

To this end, the city has strengthened communications and assisted businesses to enhance their capacity, while connecting startup networks in and outside the city.

So far, the city has supported 68 firms at a total cost of 13.81 trillion VND (593.83 million USD).

In terms of infrastructure, the city has built a working and startup area covering 1,836 sq.m in Son Tra district, while cooperating with the Ministry of Science and Technology to design a national startup centre in the area.

Over the past three years, local startup incubators have launched more than 60 projects in tourism, agriculture, health care, education, food processing, IT, transportation, and environment. Many of the projects have drawn interest from investors.

Each year, the city assigns specific tasks for each department and sector in supporting startups at an investment of nearly 14 billion VND since 2017.

Director of the Department of Science and Technology Thai Ba Canh said that the city has connected with foreign organisations to introduce the investment environment of Da Nang.

Last year, the city coordinated with the Ministry of Science and Technology to hold the Techfest Vietnam with the participation of Prime Minister Nguyen Xuan Phuc, representatives from ministries, sectors, foreign diplomats, startup organisations, investors and startup companies. At the event, 160 contacts were made with a total value of 7.86 million USD.

Alongside, the city has supported the organisation of training courses for those who are interested in launching startup to provide them with necessary knowledge.

Da Nang has also built a communications programme to encourage the startup movement in the locality./.

Most of Hanoi’s condo projects launched in western area: CBRE

Western area was the major supplier of condominium projects in the capital city of Hanoi, accounting for 77 percent of the total new units in the third quarter, said CBRE Vietnam, a provider of commercial real estate services, at a meeting in Hanoi on October 9.

According to Nguyen Hoai An, Director – Professional Services at CBRE Vietnam, the Hanoi residential market shows a clear trend of decentralisation with new projects in Thanh Tri and Hoai Duc districts, sparked by well-developed infrastructure in the localities.

During July-September, there were nearly 6,100 apartments put up for sale from 18 projects across the city, sliding 33 percent from the previous quarter. In total, around 26,800 units were launched in the first nine months of this year, a year-on-year surge of 37 percent.

In terms of sales performance, 4,800 units were sold in Q3, down 32 percent quarter-to-quarter.

Although there has been a decrease in the number of units sold in this quarter, the ratio of this group to launched volume was the same as previous quarters, An said, adding this means the market still remains stable.

CBRE experts believe that the Hanoi real estate market will welcome a plentiful supply from large-scale projects in Q4 and in the coming years. Notable projects are BRG & Sumitomo Smart City in Dong Anh district and Gamuda Lakes in Hoang Mai district.

Regarding the retail market, Aeon Mall Ha Dong and FLC Twin Towers, which will become operational in the end of this year, are expected to add over 88,000 square metres to the total retail space. With new designs and diversification in industries, the shopping malls are expected to bring more benefits to retailers who are seeking opportunities outside the CBD areas.

However, CBRE experts said the distribution of large shopping malls around the city will create real challenges as there is no concentrated area for shopping in the city./.

Nearly 169.5 million USD mobilised from Government bonds

The State Treasury recently mobilised 3.94 trillion VND (169.42 million USD) through Government bond auctions on the Hanoi Stock Exchange (HNX).

Some 4 trillion VND worth of G-bonds were offered, including seven-year bonds valued at 500 billion VND, 10-year and 15-year bonds each valued at 1.5 trillion VND, and 30-year bonds valued at 500 billion VND.

The State Treasury raised 440 billion VND worth of seven-year bonds with an annual average yield rate of 3.57 percent, up 0.03 percent from the previous auction on September 25.

A total of 1.5 trillion VND was mobilised from 10-year bonds with an annual interest rate of 3.96 percent, down 0.02 percent from the auction on October 2.

Bonds with 15-year maturity raised 4.5 trillion VND with an annual interest rate of 4.21 percent, down 0.04 percent as compared with the October 2 auction.

Meanwhile, 500 billion VND was collected via 30-year bonds with a yield rate of 5.2 percent, down 0.03 percent from the auction on September 25.

So far this year, the State Treasury has collected over 162.18 trillion VND from G-bond auctions at the HNX./.

Hanoi remains Vietnam’s biggest FDI magnet in nine months

Hanoi raked in about 6.23 billion USD in foreign direct investment (FDI) during the first nine months of this year, continuing to lead the country in FDI attraction, according to the municipal People’s Committee.

Of the total, 503 million USD was poured into 631 new projects, while 509 million USD was added to 148 existing ones. Foreign investors injected over 5.22 billion USD into local firms via capital contributions and share purchases.

In September, the capital licenced 65 new FDI projects worth a total of 30 million USD, including 54 wholly foreign invested and 11 associate and joint venture ones. Some 20 million USD was added to 15 existing projects while about 75 million USD was contributed by foreign investors to local enterprises.

During the nine-month period, the city granted business registration certificates to over 20,560 new businesses with total registered capital exceeding 263.7 trillion VND (11.34 billion USD), up 9 percent and 28 percent year on year, respectively. The city is now home to over 273,700 companies.

According to the Hanoi People’s Committee, the results were largely owing to the city’s drastic efforts to improve the local business climate, accelerate public administrative reforms in business-related areas, bolster e-Government development and build a team of friendly and supportive civil servants.

The city’s departments and agencies have enthusiastically explored difficulties facing investors to provide them with timely support.

To utilise the advantages provided by free trade agreements, Hanoi will prioritise investment in the fields of information technology services, biotechnology, tourism, education, health care and logistics.

The city is set to lure over 7.5 billion USD in FDI in 2019. To this end, the city will continue attracting capital through public-private partnerships and FDI, while streamlining public administrative procedures for investors, said Chairman of the Hanoi People’s Committee Nguyen Duc Chung at a recent meeting.

Last year, Hanoi attracted 7.5 billion USD worth of FDI, the highest among the country’s 63 provinces and cities, and more than twice as much as the 2017 figure.

Eighty percent of the city’s projects were wholly owned by foreign investors. The remaining were associate and joint venture businesses.

FDI capital flowed the most into property development (29.5 percent of the total), processing and manufacturing industry (20.1 percent), and telecommunication and information (11.5 percent).

Japan was Hanoi’s largest investor with total capital of 10.2 billion USD. The followers included Singapore (6 billion USD) and the Republic of Korea (5.5 billion USD)./.

Tien Giang: Industrial production hits nearly 2.47 billion USD in 9 months

The production value recorded at the industrial parks (IPs) across the Mekong Delta province of Tien Giang reached nearly 57.38 trillion VND (2.47 billion USD) between January and September, up 13.77 percent year-on-year.

The foreign-invested and domestic sectors in the province earned more than 2.16 billion USD and 14.46 trillion VND in revenue, representing annual increases of 12.6 and 9.8 percent, respectively.

During the reviewed period, the provincial IPs management board licenced three new projects worth 347 million USD and 498 billion VND (21.4 million USD), and allowed existing projects to add a total of 78 billion VND (3.36 million USD) to their capital.

As such, the number of projects across local IPs totaled 102, including 74 foreign-invested ones. Together they occupied 541 hectares or more than 70 percent of land for lease at these parks and created over 89,000 jobs.

The province is home to four operating IPs, namely My Tho, Long Giang, Soai Rap and Tan Huong. Of this, My Tho and Tan Huong are now fully occupied./.

Dak Lak province works to wake up startup potential

The Central Highlands province of Dak Lak is making concerted efforts to develop its local startup eco-system so as to concretise all business initiatives.

Blessed with fertile soil, tepid climate suitable for agricultural development, Dak Lak is described as a large-scale production area in Vietnam, with a wide range of key products such as coffee, pepper, cocoa, cashew, rubber, avocado and durian, among others.

Under its economic development strategy, the locality has channeled focus on branching out hi-tech agriculture in tandem with shaping up a value chain for local agro-forestry goods to gain competitive edge in both domestic and foreign markets.

Developing renewable energy, trade, services and tourism also takes great interest of the province.

To that end, the provincial People’s Committee has carried out a string of measures to form a startup eco-system, encourage startup and innovation, improve business climate, raise competitiveness and support entrepreneurship development.

According to Deputy Director of the provincial Department of Planning and Investment Huynh Van Tien, the department recommended the provincial People’s Committee to sign a cooperative deal with the Startup Vietnam Foundation (SVF) in building a startup eco-system during 2018-2020, and launch the Dak Lak business incubator joint stock company.

Hoang Minh Ngoc Hai, a senior consultant at SVF, said local staples should become the main focus of startup, and any individuals who want to begin their business should pay due attention to trade and tourism services and technologies besides high-added value agricultural products.

As more visitors have come to the locality, he suggested organisations and individuals, especially young people, begin their startup with local farm produce, tourism products and services to popularise local images as well as improve livelihood of the residents.

He said it is necessary for startups to promote connection with other businesses and organisations to form a firm value chain.

Under the provincial People’s Committee’s plan, Dak Lak will support at least 50 startup and innovation initiatives and projects in the locality during 2018-2020. It targets to back 125 startup initiatives, and have at least 25 startups by 2025. Besides, the province will work to improve mechanisms and policies on startup and further develop the local startup ecosystem.

Dak Lak province has sought investment in agricultural production and processing, especially for exports and those using hi-tech, industrial livestock breeding attached to the food processing industry, regional-level schools and training centres, and supermarkets and malls.

The 13,125sq.km province has an airport and a fairly developed road network, with a network of key national highways passing through it.

It has more than 600,000ha of forests with timber reserves of more than 50 million cubic metres.

With nearly 540,000ha of agricultural land, the province grows high-value commercial crops like coffee, rubber, and pepper, suitable for developing a processing industry around them.

Livestock and poultry farming have developed rapidly in the province, providing investors a good foundation for investing in industrial-scale animal breeding, feed production, and animal and poultry meat processing plants.

A hi-tech agricultural complex, expected to cost 66 million USD, will be developed in the province late this year.

The complex's construction follows a Memorandum of Understanding signed in May in Buon Ma Thuot City between the provincial People’s Committee and Hung Nhon Group from the southern province of Bunh Phuoc and the De Heus Group from the Netherlands.

Construction on the project, spanning 200ha, is scheduled to extend from the third quarter this year to the fourth quarter of 2025.

The complex includes an 80-hectare farm for 2,400 breeding pigs selected and imported from the Netherlands; a 30-hectare chicken breeding area; and a 15-hectare plant for pork slaughtering and organic fertiliser production.

Once completed, the complex will become a leading centre for hi-tech application in animal husbandry, creation of chained products, animal feed, organic fertiliser, and commercial livestock products with the best quality in Vietnam, according to the company.

The province also has potential in minerals like feldspar and lead and sand and gravel for construction, meaning investors can develop processing industries.
It has an abundant workforce with more than 900,000 workers, 400,000 of them trained, to basically meet investors' human resources needs./.

Vinh Phuc gives green light to developing Rung lake tourism site

The northern midland province of Vinh Phuc has given the green light for Vinh Tuong district to implement its 264-billion-VND (11.35 million USD) project on building the Rung lake cultural-eco tourism site.

Designed to span 240.26 ha, including 80 ha of water surface, across the four communes of Tam Phuc, Tu Trung, Ngu Kien and Phu Da, the site will consist of five functional sectors surrounding the Rung lake.

There are a convention centre serving the organization of conferences and other cultural and musical activities; a resort that offer accommodations and relaxation services; an entertainment area where tourists can join several sports like canoeing, football, volleyball, and tennis; an area for eco-tourism and cultural activities; and an eco-residential quarter with villas, garden houses and greenery.

Formed as a result of the Ky Giang river changing its course, the 80-ha Rung lake has long been known far and wide not only for its clean air and green landscape but also for cultural activities of local communities like the Dung festival, festivals of Phu Da and Duc Ong temples, along with many cultural, historical sites and several craft villages.

The lake is divided into two separate areas serving fish farming and eco-tourism with a tree-covered mound emerging at the centre. Locals said the lake has never been run out of water, even during prolonged hot and drought periods.

With the ongoing development project, the site is expected to become a local tourist destination, attracting approximately 10,000 visitors on an annual basis once operational and contributing to Vinh Phuc’s socio-economic growth.

The Rung lake site will also become a base for short tours to local tourist destinations such as the An Tuong cultural-historic relic complex, traditional craft villages and folk festivals. From the site, tourists can also get tours to other famous destinations in Vinh Phuc such as Tam Dao resort town, Tay Thien relic site, and Dai Lai lake.

The project is in line with the province’s goal to welcome 6 million tourists this year, including 43,500 foreigners, and rake in 1.91 trillion VND (82.13 million USD) from the tourism sector.

With the increasing numbers and the diversification of tourism services, the target is reachable, the provincial Department of Culture, Sports and Tourism department said.

Vinh Phuc is now home to 67 hotels and 299 lodging facilities with a total of 6,389 standard rooms. There are 10 travel businesses operating in the locality, including four international firms.

It also houses to several popular tourist destinations. Notably, Tam Dao Resort is an ideal summer resort in the north, standing 900m above sea-level.

The Tam Dao National Park is just nearby where the vegetation coverage is representative of five types of tropical forest. The flora consists of 904 species and the rich fauna includes 307 species.

At the foot of Tam Dao Mountain, Dai Lai Lake is an artificially created lake. Dai Lai is blessed with a favourable climate, cool summer and warm winter. Over the lake lies a 3-hectare island which is home to difference kinds of birds. Tourists also have a chance to enjoy panoramic view of the lake from top of Than Lan Mountain.

Located 90km from Tam Dao, Tay Thien Site is well-known with the beauty of forests, streams, waterfalls, and grottoes.

The province also has bountiful tangible and intangible cultural values through nearly 1,000 relics such as Ha Tien Pagoda, Binh Son Tower, Huong Canh Temple, Hai Ba Trung Temple and Dong Dau archeological site. Visitors will also be fascinated with local traditional feasts, peculiar crafts, melodious folk songs, traditional popular games as well as tasteful local dishes./.

Vietnam’s cashew nut exports to China surge in nine months

Vietnam exported 42,199 tonnes of cashew nuts worth 327 million USD to China in the first eight months of 2019, up 60.8 percent in volume and 35.4 percent in value year-on-year, according to the Ministry of Industry and Trade.

The US, China and the Netherlands were the three biggest cashew nut importers of Vietnam in the period.

The export to China recorded strong growth due to trade tensions between China and the US, said the Agro Processing and Market Development Authority under the Ministry of Agricultural and Rural Development.

The authority advised businesses to focus on improving quality of products and ensuring food safety to boost exports to foreign markets.

Vietnam earned 2.4 billion USD from exporting 328,000 tonnes of cashew nuts in the first nine months of 2019, up 20.9 percent in volume but down 5.5 percent in value year-on-year./.

Hanoi to have 100 key industrial products

Hanoi is striving to have 100 key industrial products in the near future, according to Deputy Director of the municipal Department of Industry and Trade Dam Tien Thang.

During a conference held in the capital city on October 9, Thang said revenue from key industrial products reached 46 trillion VND (2 billion USD), accounting for about 43 percent of the total industrial production revenue while their exports hit 11.61 trillion VND.

Last year, Hanoi recognised 61 key industrial products and top 10 ones. The total revenue from the 61 products reached 40 trillion VND, up 28.4 percent annually, making up 32.5 percent of the total industrial production. Exports surged 74 percent to upwards 10 trillion VND.

Since early this year, 31 firms with 40 products have registered for key industrial production recognition. Their revenues are estimated at 6 trillion VND and exports at 1.6 trillion VND.

Le Hong Thang, director of the department, vowed to collect and report firms’ suggestions to the municipal People’s Committee and higher authorities.

He also promised to continue improving business climate and helping firms enhance their competitiveness, adopt modern technology and develop workforce./.

Companies issue 7.7 billion USD worth of bonds in nine months

More than 150 enterprises successfully issued bonds worth total 179.1 trillion VND (7.7 billion USD) in the first nine months of this year, a report on the Hanoi Stock Exchange bond market showed on October 8.

The nine-month value is equal to nearly 80 percent of the total bond issuance value in 2018.

The figure is also lower than the total registered value of nearly 276.9 trillion VND (nearly 12 billion USD), which means nearly 98 trillion VND bonds were unsold.

In September, 28 companies made 60 issuances with total capital raised of 19.4 trillion VND (excluding international bond issues). Most bonds were three-year term with total value of 13.5 trillion VND.

Interest rates of bonds issued in September ranged between 6 percent and 11 percent per annum.

Banks were the main player in the bond market with total issuance value of 14.1 trillion VND in September, accounting for 72.78 percent of total market value. Real estate companies followed with 965 billion VND (4.97 percent) and securities firm with 413 billion VND (2.13 percent).

Bonds issued by banks also had the lowest interest rate, averaging only 6.71 percent per year.

Some companies with big issuance value in September included Techcombank (5 trillion VND), Orient Commercial Joint Stock Bank (1.7 trillion VND), Asia Commercial Bank (1.6 trillion VND), Saigon - Hanoi Bank (1.45 trillion VND), Sovio Holdings (1.1 trillion VND), Ho Chi Minh Development Bank (912 billion VND), Phu My Hung Development Corporation (900 billion VND) and Vietravel (700 billion VND).

According to a report by Saigon Securities Inc, instead of focusing on two- or three-year term bonds as in previous months, in the last two months banks had been stepping up to issue bonds with longer maturity such as five-year, seven-year and 10-year terms.

Longer-term bond issuers included Vietinbank, Bank for Investment and Development of Vietnam (BIDV) and Southeast Asia Commercial Joint Stock Bank (SeABank).

In September, Vietnam Prosperity Bank (VPBank) was the only enterprise to issue bonds internationally worth 300 million USD./.

Private sector plays larger role in economy: expert

The private sector has contributed greatly to the country’s socio-economic development in recent years, outstripping even the foreign direct investment (FDI) sector, economic expert Pham Chi Lan said.

Speaking at a ceremony held in Can Tho City on October 7 to honor businesspeople and businesses in the Mekong Delta region, Lan said that Vietnam’s economy had expanded over 6% a year in the past few years, attributing this strong growth to the private sector.

Regarding contributions to gross domestic product, according to Lan, the non-state sector has the highest proportion, with an estimated 43.78% in 2020. The state sector and the foreign direct investment sector are projected to contribute 25.6% and 20.69% next year, respectively.

The non-state sector has posted steady growth, with its 2017 growth put at 7.93%, above the FDI sector’s 7.69% in the same year. Meanwhile, the state sector posted growth of only 4.79%.

These figures indicate that the private sector is independently strong and can navigate difficulties to achieve high growth, Lan noted.

The private sector also made the largest contribution to the state budget, at 14.7% last year, whereas the respective budget contributions of the FDI and state sectors were 13.1% and 10.7%.

With regard to socio-economic development investments, Lan said that the contributions of the non-state sector were significant, at an estimated 46% next year and an average of 41.3% per year in the 2011-2020 period. Investments in the FDI sector are stable, at some 22%, whereas the state sector is seeing declining contributions.

In the processing-manufacturing industry, the private sector has grown considerably with 2017 revenue accounting for 35%, whereas that of the FDI and state sectors were 54% and 11%, respectively.

According to Lan, some fear that the domestic sectors do not play an important role in the processing-manufacturing industry. However, domestic firms are growing and they may eventually surpass the FDI sector.

As of 2017, the non-state sector made up 51.5% of capital mobilization and 49.1% of the lending market. Therefore, half of the country’s financial and credit market is held by this sector.

The business efficiency of private firms has been improving over the years but at a slow pace. Their percentage of pretax profit on equity averaged 3.4% in the 2011-2015 period, compared with the state sector’s 12.1% and the FDI sector’s 15.1% in the period. The respective figures in 2017 were 6%, 11.4% and 18.1%. This is what private firms should focus on in the coming time to obtain higher efficiency, Lan said.

Farmers in Tiền Giang grow more fruit, adapt to climate change

The expansion of fruit growing areas in Tiền Giang Province, the country’s largest fruit producer, has helped farmers adapt to climate change and improve their incomes.

The Cửu Long (Mekong) Delta province has more than 77,000ha of fruit, exceeding 4.7 per cent of the province’s target for 2020 for fruit growing areas, its Department of Agriculture and Rural Development has said.

In recent years, local authorities have instructed farmers in Vietnamese and global good agricultural practices (VietGAP and Global GAP) standards and effective fruit growing models.

Võ Văn Nhì in Mỹ Tho City’s Đạo Thạnh Commune, for example, shifted from an ineffective 3,000sq.m rice field to green-skin and pink-flesh grapefruit planted under VietGAP standards, which results in higher quality and better prices. The origin can also be traced and the fruit is considered safe and clean.

He earns an annual profit of VNĐ200 million (US$8,600) from grapefruit cultivation.

Lê Văn Nghĩa, vice chairman of the province’s People’s Committee, said the province depends heavily on its garden economy. Many specialty fruit varieties like durian, dragon fruit and green-skin and pink-flesh grape fruit are exported and have high value.

The province has set up concentrated fruit growing areas for specialty fruits like durian in Cai Lậy District, pineapple in Tân Phước District and Hòa Lộc mango in Cái Bè District.

The province’s Cai Lậy durian has been granted geographical indication certification by the National Office of Intellectual Property.

Tiền Giang has about 100ha of Hòa Lộc mango areas planted under VietGAP standards which are guaranteed outlets by the Hòa Lộc Co-operative in Cái Bè District. The co-operative supplies 100-150 tonnes of Hòa Lộc mango a year to Hà Nội and HCM City markets as well as exporting companies.

High-value fruits

The province has encouraged farmers to switch to high-value fruits in areas where rice farming is ineffective and affected by climate change. The areas are in the Đồng Tháp Mười (Plain of Reeds) region, Gò Công coastal area, flood-prone areas in the Tiền River upper areas, and islets.

In Tân Phú Đông, an islet district affected by saltwater intrusion, farmers have shifted nearly 500ha of rice fields to vegetables and specialty fruit, mostly soursop, this year.

Soursop is a well-known specialty fruit of the district as it is resistant to drought and saltwater intrusion, and has high yield and economic effectiveness.

Local authorities in Ngũ Hiệp and Tân Phong, two islet communes in Cai Lậy District, have decided that fruit would be the key crop in the communes which have favourable conditions for fruit cultivation. Ngũ Hiệp has 1,513ha of durian, accounting for 98 per cent of the commune’s farming area.

Huỳnh Văn Phải, who grows durian in Ngũ Hiệp’s Tân Sơn Commune, said: “With its soil advantage, Ngũ Hiệp islet has conditions for developing durian growing area.”

Many durian farmers have earned very high incomes switching to high-quality durian like Monthong and Ri6, he said.

In Tân Phong, 98 per cent of the commune’s 1,352ha farming areas have been developed into orchards for growing durian, Thai jackfruit, rambutan and Ido longan.

Nguyễn Kim Đổng, who grows 6,000sq.m of Ido longan in Tân Phong Commune’s Tân Bường A Hamlet, said that Ido longan had become a promising fruit in Tân Phong Islet as it has high yield and is resistant to diseases.

The commune’s new road and irrigation systems have also helped farmers, he said.

“With the orientation of producing safe and clean agricultural products, we hope to have stable outlets for our fruit and to improve the effectiveness of orchards,” he said.

Kido Foods to buy back 2.5 million shares

KIDO Foods (KDF), the frozen foods subsidiary of KIDO Group, has registered to buy back 2.5 million shares, equivalent to 4.46 per cent of the company's total outstanding shares.

The purchase, scheduled to take place from October 10 to November 11 under the order matching and agreement method, aims to stabilise KDF's stock price.

The company will buy the shares at market price but for no more than VND40,000 (US$1.7) per share.

The minimum daily order quantity is 3 per cent of the total trading volume, equivalent to 75,000 shares, and the maximum has been set at 10 per cent, equivalent to 250,000 shares.

The company had planned to buy back three million shares, but adjusted the figure down.

In the first seven months of this year, KDF’s net revenue increased by 17 per cent over the same period last year to VND938 billion, the majority of which came from ice-cream sales.

Pre-tax profit reached VND155 billion, exceeding the yearly plan of VND150 billion. In the same period last year, the company only achieved over VND40 billion in pre-tax profit.

On the stock market, KDF shares are currently trading at VND33,500 per share, up 94 per cent compared to the end of last year. 

Digital transformation should be part of Vietnam’s growth strategy: PwC

Companies in Vietnam anticipate that the fast-approaching Industry 4.0 will bring significant benefits such as higher efficiency of operations as well as improved access to customers brought on by digitization and automation.

Success in the digital era would depend on the ability of businesses to embed the right technology, grow the right talent and apply good governance practices, experts from PwC Vietnam stated at the Vietnam Business Summit (VBS) 2019 held in Hanoi on 16 October.

VBS 2019 engaged top decision makers from the Vietnamese government and the business community in a dialogue about investment, business opportunities and ways to win in the digital era.

Prime Minister Nguyen Xuan Phuc delivered a keynote speech within the closing session, which also served as an introductory link to the 10th Asian Business Summit held in Hanoi the following day. In total, around 700 representatives of the Vietnam-based business community, the Asian Business Summit audience and a visiting Japanese business delegation, joined the event.

Themed ‘Vietnam: We mean business - Partnership in the digital era’, the discussions engaged top leaders from a multitude of industries, including technology, telecommunications, financial services, agriculture, and textile and garment. Digital transformation and workforce upskilling were high on the agenda, as the leaders shared experiences and exchanged solutions for the future.

According to PwC’s Industry 4.0 Vietnam Survey 2018, companies in Vietnam anticipate that the fast-approaching Industry 4.0 will bring significant benefits, such as higher efficiency of operations as well as improved access to customers brought on by digitization and automation. The same positive sentiment was conveyed by most industry leaders at the summit.

“It’s encouraging to see both the Vietnamese government and business community embrace the Industry 4.0 revolution with eagerness. The commitment is definitely there, but there is work to be done,” Vo Tan Long, Technology Consulting Partner of PwC Consulting Vietnam said at a panel discussion focusing on the impacts of scientific and technological innovations.

“Adopting new technologies is important, but more than that, business leaders need to think of digital transformation as an integral part of the overall development strategy of their business,” Long added.

Dinh Thi Quynh Van, General Director of PwC Vietnam, further emphasized the holistic approach to transforming for the digital age. She said that a successful business strategy for the digital age should be able to empower the workforce to own the digital transformation journey themselves.

In a new study PwC conducted among more than 22,000 workers across 11 countries, the majority (61%) of respondents are positive about the impact of technology on their day-to-day work, but only a third (33%) are given many opportunities to develop digital skills outside their normal duties.

“Upskilling the current workforce is key. It is about giving each existing employee the opportunities to gain the knowledge, tools, and abilities they need to use more advanced and ever-changing technologies in the workplace,” Van said. “Given the right context, people can be highly adaptable, and the ability of organisations to make use of that adaptability will be critical.”

Besides technology and talent, governance continues to be an essential pillar in every company’s sustainable development - now and in the digital economy. According to PwC Vietnam’s general director, this is a weak link that demands more serious attention from local business leaders in the coming time.

“Good governance becomes more critical than ever in the fast changing world, where cyber threats and policy uncertainties are rising. Ensuring the best interest of a wide range of stakeholders will help each company’s competitiveness and reputation, while facilitating access to more business opportunities,” Van concluded.

State Treasury raises 4 trillion VND through G-bonds

The State Treasury mobilised 4 trillion VND (172.66 million USD) through Government bond auctions on the Hanoi Stock Exchange (HNX) on October 16.

Accordingly, the State Treasury offered five-year bonds valued at 500 billion VND, 10-year and 15-year bonds each valued at 1.5 trillion VND, and 20-year bonds valued at 500 billion VND.

A total of 500 billion VND was mobilised from five-year bonds with an annual interest rate of 2.85 percent, down 0.04 percent from the auction on October 2.

Bonds with 10-year maturity raised 1.5 trillion VND with an annual interest rate of 3.78 percent, down 0.18 percent as compared with the October 9 auction.

Meanwhile, 1.5 trillion VND was collected via 15-year bonds with a yield rate of 4 percent, down 0.21 percent from the auction on October 9.

The State Treasury also raised 500 billion VND worth of 20-year bonds with an annual average yield rate of 4.58 percent, 0.30 percent lower than the previous auction on October 2.

So far this year, the State Treasury has collected over 166.18 trillion VND from G-bond auctions at the HNX./.

AmCham Supplier Day opens in Ho Chi Minh City

The American Chamber of Commerce in Vietnam (AmCham) Supplier Day 2019 opened in Ho Chi Minh City on October 16, attracting over 100 businesses.

Initiated by AmCham Vietnam’s Manufacturing Committee, the event supports partnership between Vietnamese small- and medium-sized enterprises (SMEs) and multinational companies in the supply chain, thus increasing the rate of domestically-made items and added value of the economy.

Participating firms are operating in electronics, metallurgy, interior décor, health care, food, beverages, transportation, services, consumer goods and other industries.

Apart from exchanges with Coca-Cola, First Solar, Binh Tay, BlueScope Vietnam, Lac Viet, GT Industrial Vietnam, the event drew more than 1,000 visitors.

AmCham Chairwoman and Chief Operating Officer of Indo Trans Corp Amanda Rasmussen said it is the sixth year the day has been held in Ho Chi Minh City and is one of the most expected events among the business community.

A representative from the US Agency for International Development Linkages for Small and Medium Enterprises (USAID LinkSME) project said the event contributes to improving the competitiveness of SMEs and their capacity to join supply chain.

The event was co-organised by the AmCham Vietnam, the Ministry of Planning and Investment and the USAID./.

Vietnam, UAE seek to expand trade, investment links

Hundreds of enterprises of Vietnam and the United Arab Emirates (UAE) gathered at a trade and investment forum in Ho Chi Minh City on October 17.

Jointly organised by the Trade Promotion Agency of the Ministry of Industry and Trade and the Vietnam Chamber of Commerce and Industry (VCCI), the event aimed to promote sustainable trade and investment cooperation and create opportunities for building business partnership between the two countries.

Director of the Trade Promotion Agency Vu Ba Phu said two-way trade between Vietnam and UAE hit 4.26 billion USD in the first nine months of 2019, with Vietnam’s exports to UAE reaching nearly 4 billion USD, up 2.23 percent compared to the same period last year.

Vietnam has become the largest trading partner of the UAE in Southeast Asia and the UAE is also the largest partner of Vietnam in the Middle East. Vietnam is calling on UAE businesses to invest in areas of logistics infrastructure, oil and gas, renewable energy, and supporting industries.

Deputy Director of VCCI office in HCM City Tran Ngoc Liem said trade between the two countries has grown fast but in an unsustainable manner. He said Vietnam wants the UAE to become a major partner of Vietnam in the Middle East, helping Vietnamese goods to reach other markets in the Middle East, Africa and the world.

Vietnam in general and HCM City in particular want UAE enterprises to pour more capital into Vietnam through channels such as the stock market, thus helping Vietnamese firms expand and promote sustainable trade and investment links.

According to UAE Deputy Economic Minister Abdullah Al Saleh, his country has great strengths in infrastructure, technology and logistics services, along with many incentive policies for FDI enterprises. It also serves as a transit point for cargo transport to many areas around the world.

The development of Vietnam's transport infrastructure such as seaports and airports will help strengthen trade ties between the two sides, he said.

According to the General Department of Customs, currently the UAE is the 10th largest market of Vietnamese goods with over 60 commodity groups, including household electronics, footwear, textiles, and agricultural products.

Vietnam imports liquefied gas, material plastic, animal feed materials and many consumer products from the UAE./.

Hanoi Gift Show 2019 features 650 pavilions

Hanoi Gift Show 2019, the eighth of its kind, kicked off in the capital city on October 17.

Organised by the Hanoi Department of Industry and Trade, this year’s event features 650 pavilions showcasing handicraft products with new and unique designs that have high economic, technical and artistic values.

Speaking at the opening ceremony, Deputy Director of the Hanoi Department of Industry and Trade Nguyen Thanh Hai said the event aims to promote Hanoi’s handicraft industry among domestic and international friends and boost the sector’s exports and sustainable development.

A number of sideline activities will be held as part of the show, including an international workshop on sustainable development of the handicraft sector with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), according to Deputy Director of the Hanoi Center for Industrial Promotion and Industrial Development Consultancy Hoang Minh Lam

A business networking programme namely “Match and Meet” is expected to draw 1,000 importers and businesses, he said.

The Hanoi Gift Show 2019 will run through October 20 and is hoped to attract 10,000 visitors./.

Binh Phuoc province invites Thai investors

The southeastern province of Binh Phuoc held a workshop in Bangkok on October 17 to invite Thai investors to do business in the province.

In his speech at the event, Vice President of the Federation of Thai Industry (FTI) Veerachai Monsintorn highlighted that Vietnam continues to be among top destinations for foreign direct investment (FDI) in the ASEAN. He said in 2018, the country ranked third in terms of FDI attraction in ASEAN, after Singapore and Indonesia, adding that the FDI flow into Vietnam in the first five months of this year was the highest for the period in the past four years, reaching 16.74 billion USD.

Veerachai remarked that the Vietnamese Government is working hard to support foreign investors and attract more to come through trade and tax incentives, while developing infrastructure in large industrial areas. He also noted the young and skilled labour force in Vietnam, along with growing domestic market in both scale and purchase power.

Vice Chairman of Binh Phuoc People’s Committee Huynh Anh Minh introduced the province’s potential and advantages, including a convenient geographic location and easy access by all transport means. The province is an industrial hub for textile-garment, leather-footwear, electric and electronic appliance, wool processing and renewable energy, especially solar power.

According to Minh, eight industrial parks with complete infrastructure are operating in the country with an occupancy rate of 70 percent. The province plans to have 13 IPs with total area of 4,686ha by 2020, along with the 28,364ha Hoa Lu border economic zone.

Last year, 34 investment projects capitalized at 348.7 million USD were licensed in Binh Phuoc, the official reported.

He called on Thai firms to invest in the support industry, hi-tech industry and farm processing in Binh Phuoc, stressing that the province will create the best possible conditions for foreign investors, especially those from Thailand.

Businesses from Binh Phuoc took the occasion to meet and reach some cooperation deals with Thai partners./.

Vietnam acts to stabilise pork prices until Tet holidays

Deputy Prime Minister Vuong Dinh Hue, who is also head of the National Steering Committee on Price Management, has recently issued instructions to authorities to cope with rising pork prices.

He has asked the Ministry of Agriculture and Rural Development (MARD) to work with the Ministries of Finance, and Industry and Trade as well as the General Statistics Office (GSO) to evaluate pork demand and supply until the end of 2019.

They have been urged to outline measures to stabilise pork prices, especially during festivals and the Lunar New Year 2020, including imports to ensure sufficient supply.

The GSO will work with relevant agencies to assess the impact of pork prices on the consumer price index (CPI), and curb the index in line with the target set by the National Assembly and the Government.

Deputy PM Hue assigned the MARD and GSO to submit reports to him before October 21./.

Vietnam, China cooperate in tea, coffee production

Vietnamese and Chinese agricultural bodies have co-organised a forum highlighting the cooperation between enterprises from the two countries in tea and coffee production and distribution.

China, the biggest market for Vietnamese farm produce, is ranked 12th and 4th among foreign importers of Vietnamese tea and coffee, respectively.

Speaking at the forum held on October 14, Vietnamese Minister of Agriculture and Rural Development Nguyen Xuan Cuong said the two countries are both big farm produce exporters, and their products supplement each other.

Their firms have a great opportunity to join hands in the production, processing, and trade of tea and coffee products to serve both domestic and global demands, he added.

Cuong said the forum would help businesses study available opportunities and form partnerships to capitalise on the strength of products for value chain development.

Chinese Minister of Agriculture and Rural Affairs Han Changfu said Vietnamese tea and coffee have an important position in China’s market, with many products favoured by local consumers.

He said he hopes that more market space will open for Vietnam’s tea and coffee to grow further in China.

Nguyen Quoc Toan, director of the agricultural products processing and development department under the Vietnamese Ministry of Agriculture and Rural Development, suggested Vietnamese and Chinese firms boost connectivity in production and supply of materials for processing and market development.

The two sides should work together in research, technology transfer and production in order to create tea and coffee varieties of high quality and productivity to serve consumer demand, Toan said./.  

Nearly 9.6 trillion VND of bad debts settled each month

Nearly 9.6 trillion VND (417.3 million USD) worth of bad debts were handled each month from August 15, 2017 to August 31, 2019, or 4.7 trillion VND higher than that during the 2012 – 2017 period.

Deputy chief inspector of the Banking Supervision Agency under the State Bank of Vietnam (SBV) Nguyen Trong Du told a teleconference on October 15 to review the two-year implementation of the National Assembly’s Resolution No.42/2017/QH14 on pilot settlement of bad debts by credit organisations and the Prime Minister’s Decision No.1058/QD-TTg approving the project on restructuring credit organisations associated with the settlement of bad debts for the 2016 – 2020 period.

Du said as of August 31, 2019, the rate of bad debts of the credit organisations system was 1.98 percent.

From August 15, 2017 to August 31, 2019, the sector dealt with 236.8 trillion VND of bad debts in accordance with Resolution No.42.

He said the SBV will continue fine-tuning the legal framework on monetary and banking activities, governance and risk management regulations in the near future.

The sector will also restructure weak non-bank credit organisations and work closely with ministries and agencies on the effort, he added.

SBV Deputy Governor Nguyen Kim Anh said financial capacity of credit organisations has been strengthened with increasing chartered capital and transparency over the past two years, thus contributing to reducing bad debts.

Speaking at the event, Deputy Prime Minister Vuong Dinh Hue said the SBV set the goal of cutting bad debts to 5 percent this year, and 3 percent next year, which is completely reachable.

He asked banks to take the initiative in the process of restructuring and dealing with bad debts, in line with law while sharing difficulties with businesses.

They must take measures to increase chartered capital in order to ensure supply to the economy, closely control bond issuance, and improve credit quality.

The leader suggested the SBV build a bad debt settlement scheme for poor and loss-making State projects and work with the Finance Ministry to submit a plan to the government to raise capital for State commercial banks.

He affirmed that the settlement and restructuring of bad debts is also the responsibility of the entire political system, from the central to local level./.