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A survey by the Vietnam Institute of Real Estate Studies (VIRES) showed that, in the past 3-5 years, over 90% of investors participated in the market’s tourism-resort realty segment. However, at the moment, the focus of investment has shifted to urban projects boasting transparent legality, with over 60% of investors interested in this segment. The vast majority of them chose long-term investment, expecting that the projects’ prices will increase many times in the coming years.
Vice president of VIRES Pham Nguyen Toan noted Phu Quoc is gradually transforming itself into a profitable investment and settlement destination.
He also singled out shortcomings such as limited land supply, and a lack of new, sustainable, and multi-functional development models in health care, education, commerce, services, finance, and banking.
Its planning should be sustainable and environmentally friendly, he added.
According to the Vietnam Institute for Urban and Rural Planning (VIUP), the city’s overall planning orientation to 2040 covers 12 development zones based on landscape features, natural ecology, topographical features, and other conditions.
Forecasting Phu Quoc’s real estate market for 2022 - 2025, Nguyen Van Dinh, Vice President of the Vietnam National Real Estate Association, said the local urban and residential segment, due to its scarcity and development potential, will still attract the attention of investors across the country, especially regarding mainstream projects with good quality infrastructure, beautiful landscape, and effective business exploitation.
Data centres to boost digital transformation in tourism sector: insiders
The domestic tourism sector needs data centres, hosted by the Vietnam National Administration of Tourism (VNAT) to accelerate digital transformation of the industry, said Nguyen Quyet Tam, a member of Vietnam Software & IT Services (VINASA) and CEO of VietISO. This company offers application solutions to tourism, hotel and international events.
Tam suggested travel firms and training centres must facilitate access to digital technology for their personnel, explaining that after the COVID-19 pandemic, the sector has to speed up. This has been hindered by limited labour volume and value.
“Most of cities and provinces believe in and have begun digital transformation, but we need a complete legal framework with a standard data system,” he continued. “The data centres and legal corridor should be put into place before 2025.”
He sees a major solution to the puzzle in iTourism and the VNAT, provincial tourism departments and travel firms would enhance their connectivity and interaction through the system, and thus improve management quality.
iTourism provides users with quality information regarding places to visit supported by actual images.
Social networks like Facebook and Tiktok have also played a significant role in tourism promotion, Tam said, stressing the need to invest in business administration platforms to better serve customers.
Revenue generated from tourism hit 11.9 trillion VND (509.85 million USD) in the first seven months of this year, a 2.7-fold rise year-on-year due to the strong recovery of tourism activities, according to the General Statistics Office (GSO).
Some localities recorded a high increase in tourism revenue in July, including Khanh Hoa province with a rise of 858.4%, Can Tho city by 328.3%, Da Nang city by 284.8%, Hanoi by 216.8% and Ho Chi Minh City by 111.4%.
Revenue from accommodation and catering services in the first seven months of this year was estimated at 324.9 trillion VND, up 37.5% year-on-year.
The number of international visitors to Vietnam in July reached 352,600, an increase of 49% compared to the previous month and 47.2 times higher than the same period last year.
Vietnam welcomed 954,600 foreign visitors from January to July, 10 times higher than the figure in the same period last year.
However, the seven-month total tourism numbers still fall short of the pre-pandemic figure. This represents a drop of 90.3% compared to 2019. Visitors arriving by air accounted for 87.1% of the total, 13.5 times higher than the figure of the same period last year.
Central provinces co-organise 1 tour-3 destinations for int’l guests
The Departments of Tourism of Binh Dinh, Phu Yen, and Khanh Hoa provinces has co-organised a workshop to develop “1 tour-3 destinations” to serve tourists from China, the Republic of Korea, and Japan.
The three southern central provinces are located on the trans-Vietnam tourist route with rich tourism resources.
They agreed that each locality needs to identify its strengths of natural resources and unique tourism products to build a common tourism product “1 tour-3 destinations”.
According to insiders, the three provinces should train high-quality tourism service staff, coordinate with airlines to open charter flights, and open flights to some major cities of China and the Republic of Korea, and Japan.
Consumer finance groups aspire to consolidate position
Foreign-backed consumer finance companies are diversifying their scope of activities to capture a larger and more lucrative market share in Vietnam.
E-commerce platform Tiki last week signed a strategic cooperation agreement with LOTTE Finance, a consumer finance player from South Korea, to launch a buy now, pay later (BNPL) service in September. When making purchases on Tiki and opting for LOTTE Finance’s BNPL, consumers can pay in instalments for 2-3 months without interest.
“Through BNPL services, we hope to bring Vietnamese customers convenient and safe financial and consumer services,” said Kim Jong Geuk, general director of LOTTE Finance.
“At the same time, LOTTE Finance aspires to consolidate the dominant position and become a real game-changer in Vietnam’s market.”
Earlier in July, Tiki also inked a similar cooperation agreement with Home Credit to launch its Home Paylater service on the platform.
As a subsidiary of Shinhan Card, Shinhan Finance Vietnam is dedicated to improving its reputation as the top customer-support financial institution in Vietnam by using the Shinhan Card technology platform in tandem with its financial offerings.
Earlier this month, Shinhan Finance also launched a consumer loan product exclusively for Tiki merchants with simple disbursement procedures.
Accordingly, sellers do not need to prove their income with Shinhan Finance. Based on sales revenues from the Tiki system, Shinhan Finance will grant a credit limit of up to VND100 million ($4,350), applicable to sellers with at least six active months.
“We acknowledge that the e-commerce business in Vietnam is rapidly expanding and playing a significant role in bolstering the country’s economy,” said Kim Chul Soo, director of Product Development at Shinhan Finance. “Henceforth, we are teaming up with Tiki to assist sellers with easier, flexible capital access. Shinhan Finance boasts a strong financial potential, with tailor-made advanced products and services.”
Shinhan Bank, the largest foreign lender in Vietnam in terms of assets, acquired a 7 per cent share of Tiki in May. Its affiliate Shinhan Card, which holds the consumer finance unit, is in charge of the remaining 3 per cent.
Meanwhile, consumer lender Home Credit has also been pushing for a price tag of $2-2.5 billion for its outlets operating in Indonesia, Vietnam, the Philippines, and India.
Last week, Bloomberg revealed that negotiations between Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial institution, and Home Credit’s assets in two Southeast Asian countries are at an advanced stage.
Accordingly, MUFG emerged as the potential bidder for the firms after outbidding competitors. A total of $500 million or more may be the estimated worth of Home Credit’s assets in Indonesia and the Philippines.
People familiar with the matter stated that although Home Credit anticipated to include countries like Vietnam and India in the deal, most prospective buyers were more interested in negotiating the sale of individual markets.
To offset low loan rates and weak development at home, the three largest Japanese lenders of MUFG, SMFG, and Mizuho have been active purchasers outside Asia in recent years.
In the meantime, MSB and other potential foreign investors have finished the evaluation for FCCOM, MSB’s consumer finance subsidiary, in May but there are still requirements to be discussed including loan portfolio, employees, the State Bank of Vietnam’s clearance of legal papers, and payment terms.
Nguyen Hoang Linh, CEO of MSB, stressed that this tie-up deal would generate between VND1.8-2 trillion ($78-87 million) in profit for the bank.
Meanwhile, Japanese retail corporation AEON Group is reportedly the most potential partner for MSB. Since 2020, AEON has planned to explore the consumer finance ecosystem in Vietnam. It was rumoured that AEON’s retail business may stand to gain from the BNPL approach if a new consumer financing section was approved.
Elsewhere, HDBank and VPBank, the two parent banks of the two largest consumer finance businesses HDSaison and FE Credit, were given the task of lending VND20 trillion ($869 million) to employees at the behest of the government and the central bank. This programme is also backed by the Vietnam General Confederation of Labour in a bid to repel black credit in rural areas.
Dozens of petrol stations asked to temporarily close due to losses
The retail gasoline prices are expected to be adjusted nationwide on September 1. Dozens of retail petrol stations in the provinces of An Giang and Dong Thap have again asked to stop sales temporarily because of losses.
Ms. Tran Thi Thu Thanh Thuy, Deputy Director of the Market Surveillance Department of An Giang Province, on August 31, said that she had signed a document requesting market surveillance teams to strengthen inspection and supervision activities on the entire petrol stations in the area.
Currently, An Giang has 16 petroleum wholesalers and 588 retail petrol stations. By the end of August 31, 13 petrol stations, mostly in remote and border districts, such as An Phu, Phu Tan, and Tinh Bien, have asked to suspend operations for the time being; 40 petrol stations are still open but run out of RON-95 gasoline, or only sell gasoline at a limit of VND50,000 - VND200,000 of gasoline per time, depending on the type of vehicle.
The owner of a petrol station in An Phu District in An Giang Province analyzed that the discount rate for each liter of gasoline is VND210. The highest volume of gasoline that a petrol station can buy is 3,000 liters, generating a profit of VND630,000. Meanwhile, the rent of a tank truck is VND900,000, which means the petrol station already loses VND270,000 per shipment. If the costs of labor and electricity are added, the gas station will lose VND1.5-2 million per day.
In Dong Thap Province, according to the provincial Department of Industry and Trade, in the past week alone, ten petrol stations asked to temporarily close for personal reasons. Some businesses said that the more they sold, the more they lost.
Leaders of the departments of industry and trade in An Giang and Dong Thap provinces said that, currently, petroleum supply must depend on wholesalers and distributors because retail gas stations do not have other sources. According to current regulations, if a gas station gets gasoline from any distributor, it must not get it elsewhere. Therefore, if the supplier does not have goods to deliver, the gas station has to suffer a shortage of petrol products.
A representative of the Department of Industry and Trade of An Giang Province confirmed that the department would work with wholesalers and distributors to ensure supply for the market.
Quang Ninh starts work on large industrial factory complex
The Quang Ninh provincial People’s Committee started construction work on an industrial factory complex worth over 2.7 trillion VND (115 million USD) in total in Quang Yen town on September 1 and also granted investment registration certificates to two projects in the complex.
One of the projects is the Quang Yen electronics factory, invested by SHP and Saigontel, which produces bluetooth earphones and mobile phone speakers. The factory has an investment of nearly 1.47 trillion VND and is scheduled to become operational in the third quarter of 2023.
Another factory that was also granted the certificate on this occasion manufactures agricultural machinery engine spare parts. The 1.25 trillion VND project, also invested by SHP and Saigontel, is set to be opened in March 2024.
Over the past years, Quang Ninh has carried out many creative measures to mobilise resources for completing transport and urban infrastructure, developing services and tourism, boosting administrative reforms, and improving the investment and business environment.
The province is also one of the first localities in Vietnam to work with the world’s leading consulting companies like McKinsey, BCG, Nikken Sekkel, and Nippon Kole to build its development plans and strategies. With five coastal and border gate economic zones and the best possible investment incentives, Quang Ninh is viewed as an attractive destinations for a number of major Vietnamese and foreign enterprises such as Sun Group, VinGroup, Texhong, Foxconmn, Amata, and Deep C.
In recent years, the province has reformed investment promotion and selectively attracted capital to industrial parks and economic zones, with priority given to major projects from reputable investors, and those having high added value, applying modern and eco-friendly technology, and operating in the sectors that contribute to local socio-economic development.
Local industrial parks and economic zones are accommodating 283 valid projects which are not invested by the State budget, including 90 foreign direct investment (FDI) projects worth over 4.3 billion USD and 193 domestic ones worth over 111.8 trillion VND.
Hanoi to host festival of craft villages, streets next month
Hanoi will host a festival of craft villages and streets at the Imperial Citadel of Thang Long from October 13 – 16, aiming to promote and preserve local traditional handicrafts, according to Vice Chairman of the municipal People’s Committee Nguyen Manh Quyen.
The festival will be held annually to develop craft village-based tourism and promote cultural spaces of craft villages and streets in the capital city, Quyen said.
The event will also be a chance for traditional craftsmen and craft villages not only from Hanoi but also across the country to introduce their products and seek partnership and export opportunities.
It will feature around 200 booths showcasing handicrafts, divided into six zones, including one for the recreation of Hanoi’s Old Quarter in the old times, with traditional silk stores in Hang Gai Street and “Ao Dai” (Vietnamese long gown) tailor shops in Luong Van Can Street. There will be demonstration of traditional jewellery making in Hang Bac Street.
Separate zones will be set up for craft villages in Hanoi and other cities and provinces. That for Hanoi craft villages will represent various folk crafts, including pottery-making in Bat Trang, Van Phuc and Son Dong, lacquer painting in Ha Thai, buffalo horn comb making in Thuy Ung, "to he" (coloured rice dough toy) making in Xuan La and rattan and bamboo handicraft in Phu Vinh.
There will be zones for folk games and tradition cuisine of Hanoi.
Hanoi event displays OCOP products of northern mountainous provinces
Outstanding products of the “One Commune, One Product” (OCOP) programme from northern mountainous provinces are being showcased at an event opened in Son Tay town of Hanoi on August 31.
In his opening remarks, Nguyen Van Chi, Deputy Chief of the coordinating office for the new-style rural area building programme of Hanoi, said this is an important event under the Ministry of Agriculture and Rural Development’s direction to help organisations and individuals advertise OPCP products and specialties of regions across Vietnam.
The OCOP programme looks to have at least 10,000 products nationwide by 2025. It is a focus of economic development efforts in rural areas and also a crucial task in the implementation of the national target programme on new-style countryside building for 2021 - 2025.
Hanoi is currently home to 1,649 OCOP products, including four rated five stars, 1,098 rated four stars, and 534 rated three stars. They include 1,071 food products, 35 beverage products, 17 herbal products, 492 handicraft products, and 34 fabric and apparel ones.
These items have quickly gained a foothold in the market, helping local residents expand production, increase product value, and improve their material and spiritual life, Chi noted.
Vietnam should boost mechanisation of fruit cultivation: experts
Using machines to cultivate fruits in the country still has limitations and the harvesting stage is done mostly by hand, experts said.
Fruits are one of the country’s key agricultural products for export and the country has 1.18 million hectares of fruits as of last year, according to the Ministry of Agriculture and Rural Development’s Department of Economic Cooperation and Rural Development.
Speaking at a recent seminar held in the Mekong Delta province of Tien Giang, Vu Van Tien, deputy head of the department, said mechanising the country’s fruit cultivation is focused on land preparation, tending, harvest, transportation and processing, and post-harvest preservation.
Mechanisation for land preparation is used on more than 90% of the country’s total fruit area and 70-80% for tending, he said.
In the harvesting stage, most fruits are harvested manually, he said.
To increase yield and quality, reduce labour and production costs, and enhance competitiveness, it is necessary to increase mechanisation in harvesting, he added.
Nguyen Duc Long, Deputy Director of the Vietnam Institute of Agricultural Engineering and Post–Harvesting Technology, said machines used in the country’s fruit cultivation are focused mostly on the land preparation and tending stages such as irrigation and spraying pesticides.
Small scale cultivation, scattered growing areas, and fruit growing areas mostly owned by households who have limited mechanisation capacity are major reasons hindering the process of mechanisation, he said.
Meanwhile, there are not many types of machines and facilities that meet the requirements of mechanisation and suit the cultivation situation in the country, he said.
In addition, investment in researching mechanisation for the country’s agriculture production is still modest, he said.
To increase mechanisation, the country needs to identify the potential and advantages of each locality to choose types of machines and facilities suited for each kind of fruit, he said.
In addition, it is necessary to establish large-scale growing areas and upgrade transport infrastructure for agriculture production in rural areas, he said.
Besides researching and using agricultural machines and facilities, the country should prioritise applying smart devices to manage information and data for agricultural production, according to participants at the seminar.
It is also necessary to develop human resources for modern agricultural production, including workers who operate modern agricultural machines, they said.
The Government and the Ministry of Agriculture and Rural Development have implemented various policies to boost mechanisation in agricultural production in recent years.
Fruit growers in the country, especially in the Mekong Delta, have used more machines in cultivation.
The delta has 400,000ha of fruits with an annual output of 4.3 million tonnes, accounting for 60 % of the country’s total output.
Vo Huu Thoai, head of the Southern Fruit Research Institute, said mechanisation for fruit cultivation in the Mekong Delta has yielded positive results.
In a specialised durian growing area covering more than 15,000ha in Cai Lay district, which is Tien Giang province’s largest durian producer, farmers have strengthened mechanisation in tending orchards.
In the area, stages such as pumping irrigation water into orchards, irrigating trees and spraying pesticides are done by machines.
Some large farms have applied mechanisation in harvesting fruits to reduce harvesting cost, reduce depending on harvest workers and meet harvest requirements, he said.
Sustainability and circularity a necessity for Vietnamese textiles
Sustainability and circularity are an inevitable path that Vietnamese textiles have to follow, according to Truong Van Cam, General Secretary of the Vietnam Textile and Apparel Association (VITAS).
He said a booming textile industry has become a thing of the past. The industry has shifted its focus from fast growth to sustainable growth. It is expected to grow by around 6% from 2022 to 2030 and achieve circularity between 2030 to 2045.
He also underscored VITAS's PPP (Profit-People-Planet) as a well-suited model for textile firms to go green. Under the model, firms are required to operate profitably and, at the same time, improve workers' living conditions and embrace green production.
The general secretary urged textile firms to keep themselves well-informed about circularity to not lag behind on the global green path. He also called on firms to weigh the costs and benefits of green transition to develop the best strategies for themselves, avoiding green-at-all-cost narratives.
Saskia Anders, director of the GIZ Fabric Asia Programme, revealed that the European Commission passed its strategy for sustainable and circular textiles this year.
Up to 16 regulations and other policy measures are being planned to make textile products that enter the European market more long-lasting, repairable, reusable and recyclable until 2030.
Nguyen The Chinh, former head of the Institute of Strategy and Policy on Natural Resources and Environment, defined circular economy as an economic model that allows efficient use of materials, longer product life spans, lower production wastes and less environmental impacts.
He said the Government always puts circularity high on its agenda and aims to encourage the reuse and recycling of production waste. He also said Vietnamese firms could learn from German firms in this regard to operate more circularly.
Cao Minh Ngoc, director of the RTS Vietnam Technology Solutions and Resources, underscored four factors that are posing a serious threat to water security in Vietnam, which are climate change, rising sea levels, drought and flooding.
An average of 30,000 cubic metres of used water go through a treatment plant and get released into the environment daily in industrial parks. However, he said the practice of pumping treated water into the environment is a waste of resources.
He also asserted that firms engaging in treated water reuse would be granted Green Certificates, which help them penetrate international markets more easily.
Tran Hoang Phu Xuan, director of the fashion firm Faslink, asserted that two million cups of coffee are consumed every day and the decomposition of the untreated coffee grounds releases a huge volume of methane, a greenhouse gas.
Her firm has embraced circularity by recycling coffee grounds into coffee-derived yarns, which are later used to make T-shirts. The yarns provide five times more UV protection and three times more odour control than cotton.
Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes
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