Vietnam spent VND26.45 trillion (US$1.15 billion) importing fruits and vegetables in the first nine months of 2017, up 80.5% year-on-year and double the nation’s revenue from exports of these products, according to the Ministry of Agriculture and Rural Development.

The country imported US$914 million worth of fruits and US$218 million worth of vegetables in the nine-month period, increasing two-fold and 30% respectively against the same period last year.

Thailand remained Vietnam’s biggest exporter of the products with 60.7% of the total, followed by China and South Korea.

A report by the Export-Import Department under the Ministry of Industry and Trade said exports of vegetables, fruits, cashew nuts and seafood registered growth of more than 20% in the period. In the agro-fishery category, vegetable and fruit exports brought in US$2.67 billion, up 45.6% over the year-ago period.

The Ministry of Industry and Trade said the cooperation between Vietnam and other ASEAN countries, and between ASEAN and countries outside the region through free trade agreements has helped Vietnam achieve positive export growth.

Vietnam’s fruits have been shipped to many choosy markets such as the U.S. (white and red-flesh dragon fruit, rambutan, longan and litchi), Japan (white and red-flesh dragon fruit, and mango), South Korea (white and red-flesh dragon fruit, and mango), New Zealand (mango, and white and red-flesh dragon fruit), and Australia (litchi and mango).

In a related development, Vietnam exported 3.8 million tons of rice valued at US$2.03 billion in the first nine months of the year, up 19.5% year-on-year in volume.

Rice export growth was backed by the high demand of China, Malaysia, the Philippines, Bangladesh and other potential markets.

The country has signed contracts to ship 150,000 tons of rice to Malaysia, 250,000 tons to Bangladesh and 175,000 tons to the Philippines.

Meanwhile, the increasing rice export prices in recent months have benefited local farmers. The 5% broken rice sold for US$370-380 a ton in early June and the price soared to US$380-390 in mid-August. The 25% broken rice price also inched up from US$340-350 to US$360-370 a ton in the period.

High-quality rice exports surged while low and medium-grade rice shipments edged down in the first nine months, which is in line with the export development plan of the country.

Intel introduces high-performance computing solution

Intel and its partners SuperMicro and VMware have introduced Private Cloud solution that is built on SuperMicro new-generation server featuring Intel Xeon Scalable platform and VMware virtualization software.

Private Cloud helps raise the server efficiency by 40% compared to the current solutions, boost responsiveness, support elastic scaling, and deploy applications faster and more securely.

This is a computing solution for enterprises to improve their competitiveness and information security, and optimize costs for their technology-computing system.

Private Cloud is a high-efficiency solution with outstanding storage capacity, processing speed and data protection thanks to a combination of server of new X11 generation from SuperMicro, Xeon Scalable platform from Intel and virtualization software from VMware, which are the global leading technology developers.

Private Cloud is suitable for medium enterprises active in a wide range of fields, from communications and marketing to finance, banking, education and healthcare, with more than 50 employees each.

For a full package of Private Cloud solution, including consulting, installation and operation, enterprises in Vietnam should contact Nhat Tien Chung IT Telecoms Co Ltd. The company has been the VMware Professional Cloud provider and distributor of SuperMicro products in Vietnam over the past 15 years.

Ben Tre to hold Mekong Connect forum

The Business Studies and Assistance Center (BSA) and the Mekong Delta province of Ben Tre will organize the Mekong Connect 2017 forum to explore ways to boost connectivity between the provinces in the delta.

Slated to take place on October 26, the forum will be attended by around 100 foreign and 500 domestic firms, and about 20 international organizations.

Participants will have intensive discussions on four specialties in the delta: coconut, rice, fish and lotus, and sound out business and investment opportunities.

Finance Ministry relaxes conditions for accountants at micro businesses

The Ministry of Finance’s draft circular eases the conditions for accountants at micro businesses.

Micro businesses would not need to have a chief accountant. Relatives of board members (director, deputy director and chief accountant) such as parents, foster parents, children, foster children, wives, husbands, brothers and sisters can work as accountants at these entities. 

Manager, warehouse keeper, cashier or purchasing executives could also work as accountants at micro enterprises. Micro businesses would be allowed to hire people from accounting service companies to work as accountant or chief accountant.

Micro businesses have so far been forced to comply with the same accounting regulations as small and medium enterprises. This is one of the reasons that make household businesses hesitant to transform into companies.

The Ministry of Finance has also proposed simplifying a number of other procedures for micro businesses.

If the draft circular is approved, micro enterprises will have their own accounting rules in early 2018.

Coffee exports down in volume, up in value

Coffee exports dropped 20.5% in volume in the first nine months of this year, but the value still inched up 1.3% to US$2.55 billion as export prices were on the increase, according to the Ministry of Industry and Trade.

The average export price was US$2,286 per ton, up 27.4% against the same period last year.

The Vietnam Coffee and Cocoa Association (VICOFA) attributed the sharp decline in export volume to the decrease in domestic supply after the 2016-2017 crop failure. However, the 2016-2017 annual crop is still considered favourable for Vietnam coffee exports as global coffee production was going down.

Crop failure in Brazil was the main cause, pushing the coffee price up. Vietnam will enter the main harvest season as from October while Brazil coffee productivity is estimated to be lower than expected. As a result, the price of coffee is expected to stand high.

Last year, Vietnam shipped 1.79 million tons of coffee to get US$3.36 billion, a year-on-year rise of 33.6% in volume and 25.6% in value.

Five-star luxury hotels just got a whole lot more expensive in Hanoi

Five-star hotels in Hanoi have raised prices by 38% on average since last year and are charging significantly more than their peers in Saigon, with statistics showing a strong increase in the capital's international arrivals in the first nine months.

A report from real estate consultancy firm Savills showed Hanoi’s luxury hotels charged an average of US$151 per night in the third quarter, which was a slight drop compared to what spring holidaymakers had to pay, but a massive leap from a year ago.

Room rates at three and four-star hotels also went up slightly to US$48 and US$73 per night, leaving the city’s average hotel fee at US$108, up 26% from last year.

The industry’s supply has expanded 8% from last year to 9,840 rooms, but tourism figures show that arrivals have been growing at a much faster rate. International arrivals to Hanoi in the first nine months increased 24% on-year to around 3.5 million, according to the city’s statistics office.

Also according to Savills, Hanoi’s luxury hotels are now much more expensive than in Saigon, where five-star hotels now charge an average of US$118 per night, compared to US$67 for a four-star room and US$43 for three-star accommodation.

The southern megacity, which received 4.2 million foreign visitors in the first nine months, plans to add more than 3,600 hotel rooms in the next three years.

Hanoi and Saigon, the country’s largest and most expensive cities, are also the top tourist destinations in Vietnam thanks to a mixture of historical sites and modern vibrancy.

In April, budget tourism site Price of Travel named the cities among the cheapest tourist spots in Asia for 2017, with daily expenses for a backpacker estimated at US$18.16 in Hanoi and US$18.33 in Saigon.

Hanoi, a 1,000-year-old city, was also named the cheapest travel destination by TripAdvisor travelers between 2014 and 2016.

The travel site’s report last year estimated that a three-night holiday for two in Hanoi costs only US$494, which is nearly four times less than New York, the most expensive travel destination in the ranking.

VPBank launches VPBank StartUp project

The Vietnam Prosperity Bank (VPBank) has officially launched the first year of its $1-million startup support project “VPBank StartUp”, to aid the development of Vietnam’s startup community.

In 2017 and 2018, VPBank StartUp will spend at least $1 million on implementing direct support solutions for Vietnam’s startup community, including building the UP@VPBank working space for startups. 

UP@VPBank focuses on supporting startups in the field of FinTech and creative industries, especially startups that develop solutions to problems at the local co-working space, developing and implementing training and coaching models with the direct involvement of VPBank’s senior executives and leading experts in the fields of product management, management, marketing communications, and human resources management, supporting operating costs for startups via seat financing at UP@VP Bank’s common office space, and awarding startup prizes at a contest on ideas and solutions in various topics.

Starting from September, VPBank StartUp selected and sponsored the location of UP@VPBank Lang Ha for seven startups from service, FinTech, security, and human resource services. In the first year of the project, VPBank StartUp will spend VND6.5 billion ($286,000) on supporting workplaces for startups at UP@VPBank.

“VPBank is confident that startups are potential communities that create great value for society and will become an important component of the Vietnamese economy in the future,” a VPBank representative told the opening ceremony of UP@VPBank Lang Ha.

 “Becoming part of the startup eco-system is both our responsibility and our honor. With the launch of the program, VPBank also hopes to foster innovation and startups within the bank. This is also one of VPBank’s values in this project.”

VPBank StartUp marks the bank’s next steps in implementing its corporate social responsibility (CSR) activities, which focus on providing comprehensive support to the startup community in Vietnam, adopting the major policies of the government and major cities around the country.

According to experts, Vietnam is now gathering the necessary strengths to become a startup country, with a “golden population structure”, a young workforce, and many talented people in technology. It has witnessed significant strides in the startup community since last year, with more than 100,000 small businesses (of less than seven employees) being established. 

A number of startups have successfully secured tens of millions of dollars in funding and many have reached out to global markets. However, what Vietnam still lacks is a complete startup system, including three important factors - policy, community, and finance.

With its position as one of the leading banks in the country and with practical activities, VPBank hopes the project will help the startup community become stronger in the future.

Samsung Pay available for Visa cardholders

Samsung Vina and Visa, the world’s leading organization in digital payments, have announced that Samsung Pay is now available in Vietnam for Visa cardholders of Vietinbank, Citibank, and Shinhan Bank Vietnam.

According to Visa, Samsung Pay could not be coming at a better time as Vietnamese consumers are well positioned to embrace the arrival of mobile payment technology.
Visa’s Consumer Payment Attitudes Survey 2017 shows that 85 per cent of Vietnamese consumers have already made purchases using their mobile phones, driven by smartphone availability (40 per cent) and ease of use (37 per cent) compared to cash.

“We’re excited to be providing Visa cardholders with access to Samsung Pay mobile payments in Vietnam,” said Mr. Sean Preston, Visa Country Manager for Vietnam, Cambodia and Laos. “Given their strong appetite for new technology we’re confident Vietnamese consumers will embrace Samsung Pay as a faster and more convenient payment method.”

A secure and easy-to-use mobile payment service, Samsung Pay can be used to make purchases almost anywhere that credit and debit cards are accepted. By incorporating Samsung’s proprietary Magnetic Secure Transmission (MST) technology, together with Near Field Communication (NFC), Samsung Pay will be compatible with the majority of existing and new payment terminals.

“We believe that Samsung Pay will add more value to our Galaxy ecosystem and bring consumers’ mobile experience to the next level,” said Mr. Nguyen Quang Hien Huy, Vice President and Head of IM Business at Samsung Vina. “We are also excited to be partnering with Visa, one of the world’s leaders in digital payments, on this project. The partnership reinforces our commitment to maximizing Vietnamese consumers’ satisfaction with a payment service that is simple, secure, and available almost everywhere.”

Samsung Pay transactions are protected by multiple layers of security, including the Visa Token Service, a technology that replaces sensitive payment account information found on payment cards, such as the 16-digit account number and card expiration date, with a unique code that can be used to safely process payments. By using a token, it ensures actual card account details are not exposed during a mobile payment transaction.

“While speed and ease of use are the major advantages of mobile payments over cash, payment security plays an equally crucial role in ensuing consumers feel confident when they reach for their mobile phones to pay,” Mr. Preston added. “This is where our Visa Token Service adds tremendous value to the mobile payments experience, by protecting consumers’ payment data during transactions.”

Average asking prices in Hanoi down in most grades

Savills Vietnam has reported that Hanoi’s apartment market welcomed 13 new projects and the next phases of 16 active projects providing 6,170 units in the third quarter of 2017, down 3 per cent quarter-on-quarter but up 41 per cent year-on-year.

Grade B continued to dominate sales. Total sales were 5,660 in the quarter, down 17 per cent quarter-on-quarter but relatively stable year-on-year.

Average absorption was 24 per cent and average asking prices were down across most grades, to VND28.432 million ($1,247) per sq m.

According to a survey by Savills, the focus is clearly shifting to the more affordable housing segment with an increasing proportion of homebuyer demand.

Ms. Dang Phuong Hang, Director of Research at Savills Vietnam, told a recent press conference on Hanoi’s market in the quarter that the western area will continue to be active as it will account for more than 50 per cent of total market supply in the years to come.

 “The eastern area, with four new bridges, will also open up new development opportunities in the long term,” she said.

The report also noted that in the fourth quarter of 2017, there will be 42 launches of mostly Grade B and C projects.

However, Ms. Hang also said that the difference between home prices and income is creating a new trend towards renting rather than buying.

In Ho Chi Minh City, meanwhile, 13 new projects and the next phases of 16 active projects provided nearly 11,000 units in the third quarter. Primary supply is 35,000 units, down 2 per cent quarter-on-quarter and 11 per cent year-on-year.

Over 11,500 units were sold, down 2 per cent quarter-on-quarter. New project sales accounted for 32 per cent of the city’s transactions.

Grade A and B saw good quarterly performance, with Grade A the strongest, with 550 sales, up 149 per cent quarter-on-quarter. Absorption reached 32 per cent, stable quarter-on-quarter and up 13 percentage points year-on-year.

From the fourth quarter of 2017 to 2018, approximately 70,000 units from 60 projects are expected to be launched in Ho Chi Minh City.

Thua Thien-Hue: Businesses play crucial role in economy

The central province of Thua Thien-Hue is now home to over 6,500 enterprises, which play a significant role in manufacturing, job creation, and local budget collection, according to Chairman of the provincial Business Association Duong Tuan Anh.

As of early October 2017, Thua Thien-Hue had nearly 500 newly-registered businesses with registered charter capital of 4.8 trillion VND (211.2 million USD). The province granted licenses to 50 domestic projects worth 5.6 trillion VND (246.4 million USD) and three foreign invested ones.

Businesses contributed nearly 2.8 trillion VND (123.2 million USD) to the State budget. The export turnover reached over 558 million USD, of which the State economic sector made up over 96 million USD while foreign invested firms accounted for more than 330 million USD.

Anh said the Thua Thien-Hue Business Association has held a number of dialogues to remove difficulties for businesses in terms of tax, credit, land, administrative procedures, and technology access.

It has also actively worked with relevant sectors to provide maximum support for businesses via trade promotion activities, human resources training, credit aid, trade connectivity, and sales of products, in addition to increasing e-commerce capacity and reducing time for tax payment and customs clearance.

Additionally, the association held workshops and training courses on international economic integration and encourage businesses to join domestic and foreign trade fairs and create supply chains of products and services, he added.

Permanent Vice Chairman of the provincial People’s Committee Phan Ngoc Tho said the province will focus on developing industry in the coming time, prioritising infrastructure investment at industrial parks and economic zones, transport system, and seaports.

The province will increase investment through connection with major groups to join global value chains while speeding up equitisation and divestment in State-run businesses in tourism, as well as selecting strategic and competent investors in this field and pushing ahead with administrative reform.

Star is born: short dialing debuts in VN

Imagine that you have friends or associates coming to town and you want to book a hotel room for them. Rather than searching for hotels or looking up 11-digit phone numbers, all you have to do is think of the word “room”, punch it in on your key pad, preceded by a *, and you are put through to a five-star hotel in the centre of Ha Noi.

Or imagine another scenario. You’re walking down the street and you come across one of the many traffic accidents that plague this country. You see injured people and want to help. You remember seeing ambulances speeding past with *9999 printed on their sides. The number stuck in your mind.

That is the basic idea of the short dialing service available in some 70 countries around the world and now fully patented and available in Viet Nam, too.

Whether so-called “angel numbers” of repeating number sequences, to which some ascribe lucky vibes, such as *6868 for a home credit loans company, or simply *piza to order a pizza, the service is a proven and powerful branding and marketing tool.

Shortened dialing in Viet Nam was until recently only available for public emergency response services – police, fire, ambulance – and not licensed for private use. This year, One Smart Star Vietnam (OSSV), in partnership with an Israeli company that holds a worldwide patent on the * and # short dialing, has contracted with major Vietnamese operators, such as Vinaphone, Viettel and MobiPhone, to provide the service for private use.

“Every company dreams of having a powerhouse brand that dominates their market space,” explains OSSV’s CEO, Van Ba Dong. “Companies need to develop a strong brand, representing them clearly, and support the brand by having it in their clients’ memory – making it easy for customers to maintain brand loyalty.”

Branding experts say customer recognition is key to developing it as a tool that sets them apart from their competition, and is sorely lacking in the Vietnamese business arena. “When a customer is shopping for a particular product or considering a company to perform a service, they remember your company. They are more likely to choose a brand they recognise. Being able to easily reach the company is a clear advantage, not only in terms of access but also of loyalty,” says Dong.

“This type of exposure is good,” agrees Guillermo Pantoja, General Manager of Melia Hotel Hanoi. The hotel has notified everyone on its database of this option that it now provides for short dialing. “Some 70 per cent of our bookings are digital. This app makes things easy and fast,” says Pantoja, also pointing to the app’s other feature - a customised menu with options from which callers can choose by touching them on their smartphone screens. It allows companies to list services, navigation options, maps and more and for callers to scroll through and pick. For many callers, especially younger ones, this has been proven as a distinct advantage over listening to robotic voices reciting options and having to remember what number to press.

“Having an app is vital, for bookings, for promotions. People want to see what promotions we have, they press four numbers on their phone and they can see everything. We have a very strong presence in Viet Nam. We were the first high-rise hotel in Ha Noi. But today without an app, you don’t exist,” Pantoja says.

Dr Rafi Kot, a pioneer in private healthcare in Viet Nam and founder of the Family Medical Practice clinics, waited for the OSSV service to receive official government approval before launching his Emergency Medical Response service earlier this year. “The *9999 was the key to the success of this service, something people can remember even when they’re confused or panicking,” he tells Vietnam News.

He was so confident of this tool’s effectiveness that he “bought” various combination of “99” from the company to use for future healthcare services he has in the pipeline, such as emergency treatment for diabetics.

“In many cases, the earliest possible intervention can make all the difference between life and death. Our trained dispatch operators can offer immediate, lifesaving medical advice when reached through the short dialing, asking the pertinent questions to decide the best course of action,” says Kot. The service is available in both Vietnamese and English. 

CEOs to mull ways to develop Mekong delta at annual forum
     
The third annual CEO Forum Mekong Connect, which focuses on developing the economy of the Cuu Long (Mekong) Delta and investment opportunities there, will be held in Ben Tre Province this month.

Its organisers, the Business Association of High Quality Vietnamese Goods, told a press conference in Can Tho city on October 10 that this year the event would have the theme, “Developing local resources in combination with technological strength.”

The forum will help connect the participating CEOs with local and foreign partners and international investors with delta authorities.

There will be nearly 30 international experts speaking about how to develop the delta’s resources through the use of technology, potential of renewable energy sources in the fight against climate change effects.

Vu Kim Hanh, chairwoman of the Business Association of High Quality Vietnamese Goods, said this year the forum would have around 500 Vietnamese and 100 foreign firms and 20 international business organisations.

At two-day event on October 25-26, there will be meetings and group discussions related to the main local resources -- such as coconut in Ben Tre, rice in Can Tho, fisheries in An Giang, and lotus in Dong Thap.

Each locality in the delta has various strengths but they have not been tapped properly due to shortcomings in processing and preservation capabilities and poor trade promotion, Hanh said.

Nguyen Huu Lap, deputy chairman of the Ben Tre People’s Committee, said his province has more than 70,000ha under coconut, and Tien Giang, Tra Vinh and Vinh Long too are large producers.

It is necessary to create links between delta provinces and enterprises to strengthen the coconut processing industry to make it more competitive and capable of taking on rivals from other countries in the region, he added.

Five-star luxury hotels just got a whole lot more expensive in Hanoi

Five-star hotels in Hanoi have raised prices by 38% on average since last year and are charging significantly more than their peers in Saigon, with statistics showing a strong increase in the capital's international arrivals in the first nine months.

A report from real estate consultancy firm Savills showed Hanoi’s luxury hotels charged an average of US$151 per night in the third quarter, which was a slight drop compared to what spring holidaymakers had to pay, but a massive leap from a year ago.

Room rates at three and four-star hotels also went up slightly to US$48 and US$73 per night, leaving the city’s average hotel fee at US$108, up 26% from last year.

The industry’s supply has expanded 8% from last year to 9,840 rooms, but tourism figures show that arrivals have been growing at a much faster rate. International arrivals to Hanoi in the first nine months increased 24% on-year to around 3.5 million, according to the city’s statistics office.

Also according to Savills, Hanoi’s luxury hotels are now much more expensive than in Saigon, where five-star hotels now charge an average of US$118 per night, compared to US$67 for a four-star room and US$43 for three-star accommodation.

The southern megacity, which received 4.2 million foreign visitors in the first nine months, plans to add more than 3,600 hotel rooms in the next three years.

Hanoi and Saigon, the country’s largest and most expensive cities, are also the top tourist destinations in Vietnam thanks to a mixture of historical sites and modern vibrancy.

In April, budget tourism site Price of Travel named the cities among the cheapest tourist spots in Asia for 2017, with daily expenses for a backpacker estimated at US$18.16 in Hanoi and US$18.33 in Saigon.

Hanoi, a 1,000-year-old city, was also named the cheapest travel destination by TripAdvisor travelers between 2014 and 2016.

The travel site’s report last year estimated that a three-night holiday for two in Hanoi costs only US$494, which is nearly four times less than New York, the most expensive travel destination in the ranking.

Vietnam’s tea exports likely to increase in coming months

Vietnam’s tea exports are forecast to increase in both volume and value in the remaining months of 2017 due to growing global demand and limited supply.
The reduction of output in major tea exporting countries such as Kenyan, India and Sri Lanka, will push up tea prices, benefiting Vietnamese enterprises in the short term.

According to the Ministry of Industry and Trade, Vietnam exported 103,000 tonnes of tea worth 164 million USD in the first nine months of 2017, representing year-on-year rises of 12 percent and 11.2 percent respectively.

Pakistan, Taiwan and Russia were the biggest importers of tea from Vietnam, accounting for 51.5 percent of Vietnam’s total tea export turnover in the January-August period.

Besides opportunities, Vietnamese tea exporters are facing a number of challenges related to production costs, processing technology, quality standards, and marketing.

In the context of global economic integration, apart from tariff reduction, businesses have to suffer pressure from technical barriers, especially regarding food hygiene and safety.

To ensure sustainable growth of tea exports, local exporters need to join global value chains, promote tea production models meeting Good Agricultural Practice (VietGap) standards, build up brand names and invest in technology to penetrate into such choosy markets as the US and European Union (EU).

Vietnam has exported tea products to 110 countries and territories worldwide, with the Vietnamese tea brand names registered for protection in 70 countries and regions.

Vietnam is now the world’s seventh largest tea producer and fifth biggest tea exporter with 124,000 hectares under tea farming and over 500 facilities which produces more than 500,000 tonnes of dried tea per year.

Thua Thien-Hue: Businesses play crucial role in economy

The central province of Thua Thien-Hue is now home to over 6,500 enterprises, which play a significant role in manufacturing, job creation, and local budget collection, according to Chairman of the provincial Business Association Duong Tuan Anh.

As of early October 2017, Thua Thien-Hue had nearly 500 newly-registered businesses with registered charter capital of 4.8 trillion VND (211.2 million USD). The province granted licenses to 50 domestic projects worth 5.6 trillion VND (246.4 million USD) and three foreign invested ones.

Businesses contributed nearly 2.8 trillion VND (123.2 million USD) to the State budget. The export turnover reached over 558 million USD, of which the State economic sector made up over 96 million USD while foreign invested firms accounted for more than 330 million USD.

Anh said the Thua Thien-Hue Business Association has held a number of dialogues to remove difficulties for businesses in terms of tax, credit, land, administrative procedures, and technology access.

It has also actively worked with relevant sectors to provide maximum support for businesses via trade promotion activities, human resources training, credit aid, trade connectivity, and sales of products, in addition to increasing e-commerce capacity and reducing time for tax payment and customs clearance.

Additionally, the association held workshops and training courses on international economic integration and encourage businesses to join domestic and foreign trade fairs and create supply chains of products and services, he added.

Permanent Vice Chairman of the provincial People’s Committee Phan Ngoc Tho said the province will focus on developing industry in the coming time, prioritising infrastructure investment at industrial parks and economic zones, transport system, and seaports.

The province will increase investment through connection with major groups to join global value chains while speeding up equitisation and divestment in State-run businesses in tourism, as well as selecting strategic and competent investors in this field and pushing ahead with administrative reform.

Workshop promotes Vietnam-South Africa investment

A workshop was held in Johannesburg city on October 12 to promote investment between Vietnam and South Africa.

Vietnamese Ambassador to South Africa Vu Van Dung said South Africa is one of the biggest economies in Africa while Vietnam is a dynamic economy with a lot of potential.

Therefore, it is necessary to step up the bilateral cooperation in economics, trade, and investment as well as increase information exchanges and connectivity among businesses, he said.

The diplomat called on enterprises from South Africa and Johannesburg city in particular to boost investment in Vietnam, including the northern province of Vinh Phuc.

He cited the fact that two-way trade is estimated at over 1.2 billion USD at present.
Chairman of the Vinh Phuc People’s Committee Nguyen Van Tri highlighted the local advantages in geography, natural conditions and transport system along with potential to develop industry, services, construction and infrastructure, simple administrative investment procedures and abundant labour resources.

As of September 2017, the province received more than 253 foreign direct investment (FDI) projects from 16 countries and territories with total registered capital of over 3.8 billion USD, he noted.

He welcomed investors from South Africa and Johannesburg city to invest in the local strong manufacturing fields and pledged to create the best conditions for businesses to expand investment.

President of the Johannesburg Chamber of Commerce and Industry Herman Breedt hailed the cooperation potential between South African and Vietnamese enterprises, including those from Johannesburg city and Vinh Phuc province.

He added that the workshop creates an opportunity for Johannesburg firms to understand better the economy and trade situation in Vietnam and Vinh Phuc province, through which seeking to boost cooperation in the areas of their strength.

CPI to grow by less than 4 percent this year: steering committee

Members of the Steering Committee on Price Management shared the view that the consumer price index (CPI) will grow by less than 4 percent this year, citing the positive outcomes of the first three quarters and price forecast for the last quarter.

At a meeting on October 13, the steering committee’s aides reported that prices were controlled in line with the target set by the Government and National Assembly. The figures were basically stable in the past nine months.

The CPI growth rate declined month on month with a nine-month average increase of 3.79 percent compared to the same period of 2016. However, it grew by only 1.83 percent against last December.

The CPI hike between January and September was mostly attributable to the scheduled augmentation of medical and educational services prices, which are under the State’s management, along with the five consecutive rises of petrol prices in recent months. The increases of minimum wage at the year’s beginning and construction sand prices since the second quarter are also contributors to the CPI growth.

Meanwhile, CPI was hampered by falling food prices, especially pork prices in mid-2017, strong price management moves taken by the Government and sectors, and a flexible monetary policy that has helped stabilise exchange rates and interest rates, according to the aides.

Applauding inflation control efforts, Deputy Prime Minister Vuong Dinh Hue said inflation rate must be kept at below 4 percent while core inflation must be at 1.6 percent this year so as to help minimise expenses for businesses and achieve the targeted economic growth rate of 6.7 percent.

Regarding the last quarter of 2017, he asked ministries and sectors to pay attention to the rising trend in petrol, gas and pork prices. 

He also told the Ministry of Agriculture and Rural Development to update information about damage caused by the recent storm Doksuri and floods in order to manage prices of agricultural products. Meanwhile, the Ministry of Industry and Trade needs to continue coordinating with the Ministry of Finance to use the petrol price stabilization fund appropriately, helping to control petrol prices’ subsequent impacts on other goods.

The State Bank of Vietnam was ordered to adjust credit growth to inflation and ensure capital is channeled into prioritised fields.

BIDV Securities Co plans share issuance to raise charter capital

BIDV Securities Co, the investment arm of the Bank for Investment and Development of Việt Nam, has asked shareholders to approve its charter capital increase plan.

According to the plan, BIDV Securities (BSC) will raise its charter capital to VNĐ1.07 trillion (US$47.8 million) from the current figure of nearly VNĐ930 billion.

To complete the plan, the company intends to issue 4.6 million shares this year to current shareholders to make a 5 per cent advance dividend payout for 2017 performance.

BSC also plans to auction 10 million shares on the public market.

The auction price will start at VNĐ10,000 per share and auctions will be organised between the fourth quarter of 2017 and the first quarter of 2018.

Shares of BSC are listed on the HCM Stock Exchange under code BSI, closing up 1.4 per cent on Tuesday at VNĐ14,700 per share.

Business innovation to drive success in fourth industrial revolution

Innovation in business plays an important role in an increasingly competitive and changing economy, experts said at an international conference held on Thursday in HCM City.

Nguyễn Đình Thọ of the International School of Business at the University of Economics HCM City said that innovation was particularly crucial in transitioning economies like Việt Nam and that firms incapable of innovating would find it difficult to compete with other companies.

Innovation includes the generation, development and implementation of new ideas, products or processes that improve companies’competitive advantage and performance, Thọ explained.

Dr Bahaudin Mujtaba of the US’s Nova Southern University described innovation “as the process and outcome of creating something new which is of value.”

Outcomes of innovation include new products, new ways of organising, new markets, new processes and new sources of supply. “Innovation can be a better way of doing things or an improvement to an existing product or invention,” he said.

Innovation requires creativity and the ability to see a problem in several dimensions and to truly understand the problem at hand, Mujtaba said.

Process innovation is achieved through the creation of a new means of producing, selling or distributing an existing product or service, while technical innovation is simply the creation of a new product or service, such as a new line of automobiles or the introduction of cellular telephones.

Administrative innovation is the creation of a new organisational design which supports the creation, production and delivery of services or products, such as a virtual team meeting without all members being in the same room or even working at the same time.

Most companies see the importance of innovation, Mujitaba said, adding that innovation success is a consequence of creating a culture in which it can take place.

“The key to their success has been to create the conditions in which innovation can arise from any one of a number of directions, including lucky accidents, and there is a deliberate attempt to avoid putting too much structure in place, because this would constrain innovation,” he added.

One way to spur creativity and innovation is to allow employees to work on their own and in their own time on innovation projects, accessing resources in a non-formal way, he said. 

The one-day international conference served as a platform for researchers and practitioners to debate recent insights on innovation in various industries.

The conference was organised by the HCM City Open University in co-operation with the United Nations Industrial Development Organisation, Berlin School of Economics and Law, and other foreign universities.

Build brands to boost exports to Korea: Official

Vietnamese firms must focus more on building brands of products to be able to boost exports to the Republic of Korea (RoK).

Lê An Hải, deputy head of the Ministry of Industry and Trade (MoIT)’s Asia-Pacific Market Department, said this at a seminar on promotion of Vietnamese brands for the Republic of Korea, held on Thursday in Hà Nội.

According to Hải, the RoK is considered a potential market for Vietnamese products, however, export to the market still faces challenges, including brand registration.

He cited coffee as an example. With export turnover accounting for 34 per cent of the world market share, Việt Nam is proud to be one of the world’s largest coffee exporters, he said. The country is also among the three largest coffee exporters to RoK, however, few Koreans know this.

Made-in Vietnam textile and garment products also suffer the same fate in this market although the quality and production capacity of the country is superior.

According to Hải, one of the main reasons why the Vietnamese brand is not popular in RoK is the packaging design.

“Made-in Vietnam products always sell better if the products are ordered by Korean enterprises,” Hải said, explaining that Korean enterprises themselves design attractive packaging and properly grasp the taste and aesthetics of the Korean people.

Hải therefore said that it is important for Việt Nam’s firms to focus on building Vietnamese brands in the context of fierce competition between local and foreign firms. To do this, Vietnamese firms should first perform well in the domestic market to build quality products -- from packaging design to safety. The Vietnamese firms can in this way strengthen their brand in the domestic market and then expand to foreign markets, especially a fastidious market such as RoK.

Yoon Sang Ho from the Korea Small and Medium Business Association said Korean customers often prefer to choose brands they know. At the same time, a solid brand will help firms protect their market share not only in the domestic market but also in the foreign market.

Besides this, he suggested that businesses should study and grasp the tastes of Korean consumers. Thus, new Vietnamese brands can leave their mark on the shopping habits of indigenous customers.

According to Đỗ Kim Lang, deputy director of the MoIT’s Trade Promotion Agency, RoK is currently the largest investor and one of Việt Nam’s major trading partners. Notably, in 2016, RoK was Việt Nam’s third largest trading partner, while Việt Nam was RoK’s fourth largest export market. Two-way trade between the two countries increased nearly 87-fold -- from US$500 million in 1992 to $43.4 billion in 2016.

However, the country’s trade deficit with RoK is increasing, reaching up to $23.7 billion in the first nine months of this year, data of the General Department of Vietnam Customs showed. Việt Nam mainly imports machinery, computers, electronic products and components, and raw materials for textile, as well as leather footwear, steel, plastics and chemicals from RoK.

Contest to celebrate Việt Nam’s timeless charm

The Việt Nam National Administration of Tourism (VNAT) launched a contest with the theme ‘Việt Nam – Timeless Charm’ today in Hà Nội.

The contest is open to all Vietnamese and foreigners who have travelled to the country and want to share their experiences and feelings about the landscape, destinations and culture.

Participants can send written work and videos to the co-organiser of the contest, Lao Động (Labour) Newspaper before May 31, next year.

The awards ceremony will take place on July 9, next year at the Hà Nội Opera House.

Nguyễn Văn Tuấn, head of the VNAT, said the contest will gather many entries to promote Vietnamese tourism as well as ideas from travellers to improve tourism services.

Craft and Design Challenge launched

The first ever Craft and Design Challenge Prize 2017 has been launched for Việt Nam’s design students, young designers and entrepreneurs who either show an interest and ability in craft-based design or have experience running craft and design projects and/or businesses.

The contest, organised by the British Council Vietnam, aims especially to create new and more inclusive opportunities for women in sustainable and ethical craft-based production. The contest is also a response to the increasingly endangered field in the face of globalisation and rapid economic development. 

Female artisans, who constitute a majority in this sector, are particularly vulnerable due to lack of knowledge and skills necessary for sustaining their business. The combination of traditional craft and contemporary design is expected to generate a renewed interest in crafts through creative processes, informed research and storytelling.

Organisers said the contest will create opportunities for designers and entrepreneurs to train in design and business management and work in collaboration with artisans on skills and product development, focusing on communicating cultural identity which will also enhance market access.

A panel of judges who are experts in the field of craft, design and entrepreneurship will select 15 successful candidates who can demonstrate strong interest in craft and design, and wish to create value from working with craft-maker communities through design.

Those 15 candidates will have to take part in different activities as preparation for the Craft and Design Challenge. The first one is a series of three professional development workshops to be held in November in Hà Nội, which will provide participants with practical knowledge and skills in craft, design and business planning, so as to be better prepared to enter the challenge.

The second stage is a residency programme planned to take place in November and December to facilitate the necessary connection and experience between the participants and female craft communities, so that the participants are better prepared to work with craft communities for the challenge.

After the residency, participants will have two months, tentatively January and February, to prepare for a design-led intervention and business plan for the Challenge. Project proposals could include the design of a prototype in collaboration with the artisan communities, new tools and ways of maximising economic benefit and sustainability which might support the livelihoods of female artisans and the sustainability of their craft practice.

Finally, a showcase of the craft and design projects/products will be organised for all entries of the Challenge. The showcase will be held during three weeks in March or April 2018, offering an opportunity for participants to present their product designs/prototypes as well as raise funds for their business plans.

First prize winner will get VNĐ60 million (US$2,640), and the two runner ups will get VNĐ50 million and VNĐ40 million. Prize winners will be expected to use the award as a seed fund to implement their newly formulated craft and design development projects. 

Application packages should be sent to [email protected] by 25 October 2017.

Vietnamese trust content and brands
     
Connected consumers in Viet Nam are more trusting than other countries in the region when it comes to their online activities, according to Kantar TNS’s latest Connected Life research.

Compared with the rest of the world, they are less sceptical of the content they see and more accepting of brands online. Brands need to continue to earn this trust through appropriate interactions or risk the rise of doubt and cynicism.

Kantar TNS surveyed 70,000 people across 56 countries and conducted 104 in-depth interviews as part of the 2017 Connected Life study. The research explored consumers trust in brands under four criteria -- technology, content, data and e-commerce.

In Viet Nam, more than half the consumers (54 per cent) trust large global brands. However, consumer trust falls significantly in developed markets such as Australia and New Zealand, where just 19 per cent and 21 per cent, respectively, trust major global brands.

The findings show that optimism around connectivity is still high in Viet Nam. Only 18 per cent of Vietnamese have concerns about the amount of personal data brands have on them, compared with 40 per cent globally and rising to as high as 56 per cent in Australia. What’s more, only 20 per cent are adverse to connected devices monitoring their activities online if it makes their lives easier, compared with 56 per cent of the consumers in South Korea and 62 per cent in New Zealand.

For the most part, consumers in Viet Nam have not yet realised the trade-offs intrinsic to a connected lifestyle that have caused other countries to become more cynical about the way companies are using their personal information.

“Connected consumers in Viet Nam are still enjoying the first wave of digital interaction with brands. Now is a great time for brands to demonstrate how much value they can add to people’s lives via online channels and build these relationships from the ground up. However, brands do need to make sure they are not overly intrusive in this space to ensure they maintain this trusted position,” Ashish Kanchan, managing director, Viet Nam, Kantar TNS said.

However, this progressive view on digital interaction does not translate into mobile payments. Only 14 per cent of Vietnamese say that they are willing to pay for products using their mobile phone, compared with 39 per cent globally. With a high population of unbanked consumers, cash is king in Viet Nam. Innovative solutions and financial literacy are needed to overcome local barriers and entice people to start using these newer payment options.

Kantar TNS is one of the world’s largest research agencies with experts in over 90 countries. 

Businesses urged to build corporate culture
     
Deputy Prime Minister Truong Hoa Binh has urged businesses to develop corporate culture, a factor critical for brand building and sustainable development.

Binh was speaking at a forum about corporate culture, jointly held by the Viet Nam Association of Corporate Culture Development and the HCM City Women Entrepreneur Association in the southern city on Sunday afternoon.

Binh said corporate culture should be regarded as the decisive factor for sustainable development of any firm and of the whole economy for rapid international integration.

“A good brand is not only an asset of the company, but also of the country,” he said.

However, the development of corporate culture among Vietnamese businesses remained limited, especially in the building of business ethics, which created stinging social problems.

Many firms, for profits, violated regulations, such as selling fake and poor-quality products. This was causing economic losses and undermining consumer confidence in Vietnamese goods.

Binh urged businesses to strive towards building corporate culture, complying with established laws and healthy competition.

The Government would assist businesses through the efforts to enhance the legal institution, hastening administrative reform and improving business climate and competitiveness, Binh said.

In addition, violations would be strictly penalised to create favourable conditions for businesses to start, develop and renovate.

Nguyen Thanh Phong, chairman of the municipal People’s Committee, said the city wanted firms to share difficulties they faced in building corporate culture, through which support would be raised to help firms develop sustainably.

HCM City currently has some 323,000 firms, more than 98 per cent of which were of micro and small scale, however, most failed to build corporate culture.

According to Cao Ngoc Dung from Phu Nhuan Jewelry, Vietnamese firms should cooperate with each others to grow instead of competing in an unhealthy manner.

At the conference, the Viet Nam Association of Corporate Culture Development announced the setting of standards for corporate culture, which included six criteria -- culture of leadership, building and implementing corporate value, law abidance and business ethics, as well as social responsibility and healthy competition.

An organisation board for the campaign to build corporate culture in Viet Nam also made its debut at the conference. 

Building material market stable
     
The domestic building material market remained stable in the first nine months of this year, according to the Ministry of Construction.

The ministry said plans and programmes for development of building materials were ensuing the balance between supply and local market demand.

The total consumption of cement and clinker, two key building material products, grew 6 per cent to 59.27 million tonnes in the first nine months of this year. Consumption in the domestic market was estimated at 45.28 million tonnes, 4 per cent higher than the same period last year, including 18.9 million tonnes sold by the Viet Nam Cement Industry Corporation.

The cement industry also exported about 13.99 million tonnes, nearly completing the milestone annual export target of 14-15 million tonnes, despite fierce competition from Thailand and China and disadvantages in tax rate and export prices.

During the first nine months, Viet Nam produced 141 million sq.m of building glass products, or 96 per cent of the total volume in the same period of last year.

The ceramic tile volume also reached 416 million sq.m, 4 per cent over the same period last year, and sanitary ware production reached 9.9 million units, a year-on-year growth of 4 per cent. 

Preferential loans help reduce poverty

The Vietnam Bank for Social Policies (VBSP) reported that the bank has provided loans to over 31.8 million poor households and policy beneficiaries since 2002.

The funds helped nearly 4.5 million households escape from poverty, about 3.4 million labourers have jobs and 3.5 million students cover their study.

Capital from the bank has been used to build 9.9 million rural water supply and sanitation works, nearly 633,000 houses for the needy and over 11,000 storm shelters in the central region.

As of September 30, the VBSP’s total outstanding balance was 169 trillion VND (7.43 billion USD), 24 times higher than that in 2002 when the bank was established, with growth of 19.2 percent each year.

Thanks to credits, poverty ratio dropped to 4.25 percent in 2015 from 22 percent in 2005.

The bank’s capital by the end of September was 179 trillion VND (7.87 billion USD), 25 times higher than that in 2002, 15.6 percent of which was from the State budget.

Its overdue and charged-off debts fell to only 0.81 percent as of September 30.

The bank’s wide network and simple procedures have helped the poor access capital easily with low cost.

In the future, the VBSP aims to support all poor households and other needy customers nationwide, with a credit growth of 10 percent and overdue debts accounting for less than 2 percent.

PM: Social policy credit contributes to sustainable poverty reduction

Prime Minister Nguyen Xuan Phuc has hailed credit for implementing social policies as a sound policy of the Party and State that contributes to social development and creates a momentum for sustainable poverty reduction.   

The PM made the remark on October 16 when chairing a teleconference with leaders of 63 localities nationwide to review 15 years of implementing credit policies for the poor through the Vietnam Bank for Social Policies (VBSP).

He expressed his pleasure with the efficiency of 20 credit programmes that the VBSP is running, helping nearly 7 million poor households and other needy groups access loans. 

He held that current organisation of the bank is suitable to Vietnam’s conditions. The bank has 11,000 transaction points across the country, along with 200,000 saving groups in all rural villages and communes, including those in remote and mountainous areas.

Noting that Vietnam still has 1.9 million poor households and 1.3 million others living close to the poverty line, the Government leader asked policy credit officials to try to grasp the poor’s expectations and demands, thus better serving them.

He also urged the bank to promote the application of advanced technologies and diversify their products and services in order to create optimal conditions for customers to access preferential loans.

The PM asked ministries and localities to propose measures to strengthen resources for social policy credit.

“In the Government’s perspective, investing in the VBSP and the poor means investing in development”, stated he.

He also called for the engagement of organisations, individuals, businesses and the whole community in contributing capital to the bank, thus joining hands to improve the poor’s living conditions.

The VBSP reported that since its establishment in 2002, the bank has provided loans to over 31.8 million poor households and policy beneficiaries.

The funds helped nearly 4.5 million households escape from poverty, about 3.4 million labourers have jobs and 3.5 million students cover their study.

Capital from the bank has been used to build 9.9 million rural water supply and sanitation works, nearly 633,000 houses for the needy and over 11,000 storm shelters in the central region.

As of September 30, the VBSP’s total outstanding balance was 169 trillion VND (7.43 billion USD), 24 times higher than that in 2002, with growth of 19.2 percent each year.

Thanks to credits, poverty ratio dropped to 4.25 percent in 2015 from 22 percent in 2005.

The bank’s capital by the end of September was 179 trillion VND (7.87 billion USD), 25 times higher than that in 2002, 15.6 percent of which was from the State budget.

Its overdue and charged-off debts fell to only 0.81 percent as of September 30.

At the conference, the PM presented the VBSP with the Labour Medal, first class, in recognition of its outstanding performance. Twenty collectives and nine individuals with excellent contributions to the disbursement of social policy credit were also honoured at the event.

FLC Nghe An resort to be constructed in Q1 2018

The FLC Group will begin the building of its eco-resort and entertainment complex in the central province of Nghe An in the first quarter of 2018.

The project is estimated to span 460 hectares in Nghi Loc district’s Nghi Tien commune, with total cost amounting to 10 trillion VND (440 million USD) (excluding land compensation cost).

The luxury resort will have an 18-hole golf course, condotel areas accommodating up to 2,500 rooms, a 1,000-seat convention centre, and a shopping centre, among other facilities.

Trinh Van Quyet, chairman of the group’s board of directors, said once project operates, it will generate about 3,000 jobs for local people.

In August, the FLC Group sought to develop a smart urban complex in the centre of northern Thai Binh city, Thai Binh province.

Quyet said the complex would cover an area of 300-500ha, with an artificial beach, golf course, entertainment park and shopping mall, as well as apartments, townhouses and villas.

An Giang seeks sustainable tourism development

Tourism experts gathered at the workshop “An Giang Tourism - A stone into the water” in the Mekong Delta province of An Giang recently to discuss sustainable tourism development in the locality.

Guillaume Van Grinsven, Senior Expert from the Netherlands’ Programma Uitzending Managers (Manager Deployment Programme), said that An Giang’s tourism sector needs to pay attention to safety and service quality.

Along with its tourism staples of Sam Mountain (Chau Doc city), Cam Mountain (Bay Nui, Tinh Bien district), Oc Eo (Thoai Son district) and green tours, the province should develop traditional craft villages, preserve its natural ecosystem and create tourism packages for domestic and international visitors, he stressed.

Meanwhile, Nguyen Thanh Binh, Vice Chairman of the provincial People’s Committee, said that the province is building a master plan to branch out Nui Cam tourism site, unearth Oc Eo cultural relic site and promote tourism connection with other localities. 

Participants at the event agreed that the province needs to simplify administrative procedures, develop infrastructure and establish a tourism business club in Chau Doc city.

Located in the southwest of the country and bordering Cambodia, An Giang has stunning landscapes and several cultural relic sites like Cam Mountain, Tra Su cajeput forest, Tuc Dup hill, and Oc Eo cultural relic site.

In the first nine months of 2017, An Giang welcomed seven million domestic and international visitors, accounting for 107 percent of the annual plan.

The locality raked in 3.4 trillion VND (149.7 million USD) in tourism revenue, or 95 percent of the goal for the year.

Vietnam exports nearly 1 million tonnes of fertiliser yearly

Vietnamese firms ship an annual average of about 0.8 million tonnes of fertiliser overseas, according to the Ministry of Agriculture and Rural Development.

Key markets for the products include the Philippines, Malaysia, Thailand, Laos and the Republic of Korea.

However, exports make up just about a fourth of the four million tonnes Vietnam imports on a yearly basis, mostly kali and SA fertilisers, which it is incapable of producing itself. Almost half of the imports come from China.

Fertiliser manufacturing has encountered difficulties in recent years with fertiliser prices falling due to oversupply. In 2016, droughts and saline intrusion in the south harmed agricultural production, driving down demand even further.

In addition, tougher competition from China and ASEAN countries, as well as fake and poor-quality products have hurt local fertiliser producers.

Businesses urged to build corporate culture

Deputy Prime Minister Truong Hoa Binh has urged businesses to develop corporate culture, a factor critical for brand building and sustainable development.

Binh was speaking at a forum about corporate culture, jointly held by the Vietnam Association of Corporate Culture Development and the HCM City Women Entrepreneur Association in the southern city on October 15.

Binh said corporate culture should be regarded as the decisive factor for sustainable development of any firm and of the whole economy for rapid international integration.

“A good brand is not only an asset of the company, but also of the country,” he said.

However, the development of corporate culture among Vietnamese businesses remained limited, especially in the building of business ethics, which created stinging social problems.

Many firms, for profits, violated regulations, such as selling fake and poor-quality products. This was causing economic losses and undermining consumer confidence in Vietnamese goods.
Bình urged businesses to strive towards building corporate culture, complying with established laws and healthy competition.

The Government would assist businesses through the efforts to enhance the legal institution, hastening administrative reform and improving business climate and competitiveness, Binh said.

In addition, violations would be strictly penalised to create favourable conditions for businesses to start, develop and renovate.

Nguyen Thanh Phong, Chairman of the municipal People’s Committee, said the city wanted firms to share difficulties they faced in building corporate culture, through which support would be raised to help firms develop sustainably.

HCM City currently has some 323,000 firms, more than 98 percent of which were of micro and small scale, however, most failed to build corporate culture.

According to Cao Ngoc Dung from Phu Nhuan Jewelry, Vietnamese firms should cooperate with each other to grow instead of competing in an unhealthy manner.

At the conference, the Vietnam Association of Corporate Culture Development announced the setting of standards for corporate culture, which included six criteria -- culture of leadership, building and implementing corporate value, law abidance and business ethics, as well as social responsibility and healthy competition.

An organisation board for the campaign to build corporate culture in Vietnam also made its debut at the conference.

Ministry calls for clear policies for start-ups

Creating encouraging polices and a clear legal system is crucial to attracting investment to innovative start-ups, according to a Ministry of Planning and Investment (MPI) official.

Dang Huy Dong, Deputy Minister of Planning and Investment, said that currently, guidelines on the establishment, management and funding and investment mechanisms for small and medium enterprises (SMEs), including creative firms, are prescribed in Article 18 of the SMEs assistance law.

However, bar Article 18, Vietnam’s legal system has no specific regulations on creative start-ups’ investment procedure, legal status, organisational structure, rights, responsibilities and obligations of related parties.

Therefore, a decree should be issued to define the legal status of innovative start-ups and investment funds, as well as incentives for and limitation on these entities’ profit-generating means and social impact, and at the same time address the legal system’s limitations in the matter.

The MPI has begun drafting such a decree, aiming to establish foundations for innovative start-ups and exempt them from corporate income tax for a definite period of time.

The draft is now undergoing consultation, with its 40 articles based on experiences from developed countries such as Canada, the US, Singapore and the EU, stated the Enterprise Development Agency under the MPI.

The draft features detailed provisions on the financial conditions of creative start-up investors and principles of innovative start-up investment, plus regulations on these companies’ legal status, management, operation and establishment procedures.

The draft proposes that individual investors must meet certain financial conditions, such as having an average annual income of 200 million VND (8,900 USD) for the last two years before their investment application, or having total assets of 500 million VND (22,250 USD), minus their personal debts. For investing organisations, total required assets in their latest financial report must be no less than 1 billion VND (44,500 USD).

Additionally, creative start-up investors, enterprises, organisations and individuals must stay aware of their contributed capital proportion and their legal responsibility in combating money laundering in Vietnam.
 
The ministry hopes the draft will create an appropriate legal corridor to channel capital for start-ups in Vietnam, by generating more options for investors to make investments through innovative companies and funds.

Dong also commented that if foreign creative projects are registered in Vietnam, they would be incorporated into the country’s creative development, contributing to the improvement of national credit rating and investment attractiveness.

In the context of rapidly developing technology, creative start-ups are the main force of the innovative ecosystem. Though associated with high-risks due to the high requirements of technology and innovation, creative start-ups can contribute great economic value and enhance national competitiveness.

Given the high-risks involved with these firms, traditional funding channels such as bank loans are less suitable than start-up ventures as a source of funding.

The Government should also issue policies to support start-ups investment activities, such as tax exemptions and reductions, pre-financing, counterpart funds, or unsecured lending for start-ups to minimise risk to private investors.

Vietnam is working towards becoming a start-up nation in the Asia-Pacific Economic Cooperation (APEC), targeting one million effective enterprises by 2020, facilitating technological innovation by giving priority access to finance, and opening up new market opportunities.

Reference exchange rate goes up 1 VND

The daily reference exchange rate for VND/USD was set at 22,452 VND per USD on October 17, up 1 VND from the previous day.

With the current trading band of  +/-3 percent, the ceiling rate applied to commercial banks during the day is 23,126 VND and the floor rate 21,778 VND.

Major commercial banks kept their rates quite stable.

Major banks cut their rates by 5 VND from the day ago.

The greenback is being bought at 22,680 VND and sold at 22,750 VND per USD, both down 5 VND from October 16, at Vietcombank and Vietinbank and BIDV.

Long An's infrastructure attracts real estate investors

Various residential apartment buildings and shopping centre projects are being planned and carried out in Long An thanks to infrastructure projects in and around the province.
   
Van Thinh Phat Corporation has 36 projects with a total 2,086 hectares of land. Tran Anh Group followed with various projects such as Bella Vista and Bao Ngoc Residence urban areas.

Numerous projects are being planned and carried out in Tan An City including the Vingroup's Vincom Centre that costs VND400bn (USD17.63 million). Truong Hai Auto Corporation is also investing in a VND300bn (USD13m) shopping centre that covers over 20,000 square metres.

Long An Bus Station was recently relocated and Nguyen Kim Development and Investment JSC company will use the 5,845-square-metre land for another shopping centre. The Hoan Cau Group in Long An has received approval to build Hoan Cau Long An hi-tech industrial zone.

Le Hoang Chau, chairman of Ho Chi Minh City Real Estate Association, said more investment was pouring in because of developing infrastructure in the province.

In 2010, Trung Luong-HCM City highway was opened to traffic. The highway helped reduce the travelling time from HCM City to provinces in the Mekong Delta. Since then, it has become the road with the highest vehicle density in Vietnam.

Four years later, Ben Tuc-Long Thanh Highway project was started to connect Long An, HCM City and Dong Nai Province. The project is expected to be completed next year and improve the traffic in the Mekong Delta.

Long An Province also benefits from other traffic projects that connect HCM City with other provinces such as Nguyen Huu Tho-Nguyen Van Tao street expansion or Metro Line 4 in HCM City.

Ben Luc-Hiep Phuoc Section of the Ring Road 4 is being built. The section is 35.8km long and when it is completed, the VND6.7trn (USD295m) project will help ease congestion in HCM City, improve the connection with other southern provinces, and to the Hiep Phuoc Port.

Quality key factor to promote made-in-Vietnam products

Quality is a key factor to increase the competitiveness of locally-made products, according to experts.

The campaign “Vietnamese people prioritise Vietnamese goods” has proven effective since it was launched eight years ago with various activities such as bringing Vietnamese goods to rural areas, establishing made-in-Vietnam goods stores, and prompting supply-demand connectivity.

Statistics showed in Hanoi, locally-made products accounts for 80-90 percent of goods in supermarkets such as BigC, Saigon Co.op Mart, and Fivimart. In rural areas, more than 80 percent of goods are made in Vietnam.

The increasing presence of “Made-in-Vietnam” stores in major cities demonstrates the growing demand for domestic products. This also means businesses are paying attention to high-quality and environmentally-friendly commodities at reasonable prices.

Deputy Minister of Industry and Trade Do Thang Hai said the ministry has launched several activities in response to the campaign to raise businesses’ awareness of improving quality and competitiveness of products and services, ensuring legitimate rights of customers, and building national brands for Vietnamese goods.

Vice Chairman and General Secretary of the Vietnam Association of Small and Medium Enterprises To Hoai Nam said with a population of 90 million people, the domestic market is a major one for local businesses, and if effectively used, it can bring enormous benefits.

Vietnam aims to establish locally-made product stores across cities and provinces, especially in remote and rural area, by 2020.

Da Nang maps out investment orientations

The central coastal city of Da Nang is striving to become a centre of tourism, high-quality services and high technology of Vietnam while playing a significant role in national urban development.

According to Vice Chairman of the municipal People’s Committee Ho Ky Minh, Da Nang wants to develop services, especially tourism and trade, and attract investment in hi-tech industry and information technology. 
As well as developing culture, Da Nang will also build a civilised and environmentally-friendly city and develop high-quality human resources, he added.

On the occasion of the business forum “Invest in Da Nang” on October 14-15, the city called for investment in key projects such as Lien Chieu port, railway station removal and urban redevelopment, infrastructure development at Hoa Nhon and Hoa Ninh industrial parks, solid waste treatment and water environment improvement, among others.

From 2012 to present, Da Nang has maintained gross regional domestic product (GRDP) growth of 8-9 percent, much higher than the nation’s average GDP growth.

As a driving force of the central region’s key economic zone, Da Nang is leading in the development of infrastructure as well as land, railway and airway connectivity for the central and Central Highland regions.

In the first nine months of 2017, Da Nang attracted 408 domestic projects worth 4.5 billion USD and 525 foreign ones worth 3 billion USD.

Cong Thanh’s questionable investment in face of crippling debt

Cong Thanh Cement JSC decided to build a second cement station despite its crippling debt volume of roughly $600 million, domestic cement surplus, and unfavourable economic and market conditions.

As of December 31, 2016, the firm’s loan liabilities hit a record of VND13.763 trillion ($605.8 million), comprising short-term loans of VND1.181 trillion ($51.9 million) and long-term loans of VND7.309 trillion ($321.7 million) at VietinBank and VPBank.

However, despite a revenue boost in 2016, the two new production lines put a great burden on fixed asset depreciation and capital charges. The annual average depreciation amounted to VND440 billion ($19.37 million) with an interest of VND624 billion ($24.46 million) which is a record among cement manufacturers.

Speaking about its business target for 2017, Cong Thanh’s spokesperson declared a revenue target of VND5.156 trillion ($226.96 million), doubling the previous year’s revenue with a targeted net loss of VND44 billion ($1.93 million).

The firm’s spokesperson highlighted that the cement surplus, the frozen realty market, and surging fuel prices increasing transportation expenses were the root causes of the company going through a rough patch.

As of 2016, the total capacity of domestic cement manufacturers amounted to 90 million tonnes, whereas domestic cement consumption was only 59 million tonnes and the export volume was 15 million tonnes.

Along with the hefty domestic cement surplus, the investment in the upcoming grinding station in Cam Ranh should give cause to worry for the firm’s leadership.

To date, Cong Thanh’s the cement plant has two assembly lines with the total capacity of 12,500 tonnes of clinker per day or six million tonnes annually.

Once the legal proceedings are done, the firm will start the construction of a new cement grinding station in Cam Ranh city in the south-central coast of Khanh Hoa province, the firm’s representative stated.

In 2015, according to financial and business information corporation StoxPlus, Cong Thanh ranked sixth among the top ten cement manufacturers in terms of market share, total assets, and net revenue.

Cong Thanh Cement JSC is one of the leading cement manufacturers in Vietnam. The company also invests in thermal power, fertiliser, transportation, hotel, resort and golf.

Originally, the firm started off with a chartered capital of VND50 billion ($2.2 million) in 2006, mainly producing clinker and renting out concrete mixers. Since then, the firm has grown into Cong Thanh Group, with nine member companies.

Quang Tri hosts business promotion extravaganza

Within the framework of the 13th Ministers’ Meeting connecting the economies of Vietnam and Singapore, Vietnam’s Ministry of Planning and Investment, Singapore’s Ministry of Industry and Trade, and Quang Tri provincial People’s Committee will host a conference promoting investment in the central province of Quang Tri on October 17.

The event is expected to attract the ministries’ and Quang Tri province’s top leaders, and nearly 200 representatives from the local and foreign business communities. Government’s leaders will also attend and preside over the conference.

The symbol for successful co-operation between Vietnam and Singapore is the rapid development of the Vietnam-Singapore Industrial Parks (VSIP) across the country, attracting a slew of foreign investors from around the globe.

In a meeting in March, Vietnam’s Prime Minister Nguyen Xuan Phuc and his Singaporean counterpart Lee Hsien Loong agreed to call on Singapore’s group Sembcorp – the developer of VSIP – and local partner Becamex to engage in a study of the development of the eight VSIP in Quang Tri province. It is to attract investors to the province’s Southeast Economic Zone (EZ) in particular, and Quang Tri province in general.

The EZ infrastructure development project is now in the development pipeline with the engagement of two major groups with a track record in industrial park development in Vietnam, Thailand’s Amata and Japan’s Sumitomo.

The conference aims to present the potential for new business, and support networking between domestic and foreign businesses to boost Quang Tri’s appeal in the eyes of investors.

Quang Tri benefits from its strategic position, which is the convergent point of the north-south and east-west economic axis, with favourable conditions for road, railway, and waterway transport. It is also part of the East-West Economic Corridor (EWEC), a trans-Asian route linking Myanmar, Thailand, and Laos through the Lao Bao international border gate to central Vietnam and the ASEAN region.

The EWEC is considered Quang Tri’s most prominent advantage. It makes the province a great base to expand economic alliances and trade exchanges with the whole country and countries in the region.

The province has ramped up efforts to increase its appeal towards investors in the past years. The results, however, remain modest, not corresponding with the province’s actual potential.

The investment promotion conference, therefore, attests to the support of the Vietnamese and Singaporean governments, ministries, and sectors in both countries. It also shows that the attention of local and international investors and businesses is on Quang Tri’s development, helping to facilitate co-operation between Vietnamese and Singaporean businesses, as well as businesses in the region and the world.

After the conference, businesses and foreign investors will take part in field surveys across the province, seeking investment opportunities and promoting business networking.

MBBank continues support to SMEs
     
The Military Commercial Joint Stock Bank (MB Bank) provided credit support to more than 1,000 small-and-medium sized enterprises (SMEs) with total capital of VND5 trillion (US$220 million) in the first nine months of the year.

Ha My Hanh, deputy director of MBBank’s SMEs department, said the bank would continue to provide loans of total VND20 trillion with preferential interest rate to SMEs while developing new credit products for the firms with flexible guarantee assets in the future.

Hanh said MB had effectively implemented the connecting businesses and bank programme by reducing interest rate by 1-1.5 per cent per year in comparison with the normal interest rate for SMEs. Interest rates have been less than six per cent and eight per cent a year for short-term and mid-term loans.

In addition, the bank has launched preferential products and policies for prioritised sectors, including agriculture, rural development, exports, support industry and startups.The programme has been continuously implemented since 2012. MB has committed to provide maximum supports to SMEs. It will also have solutions to resolve businesses’ difficulties in accessing the bank’s loans for their production. 

Finance sector discusses application of Industry 4.0
     
The fourth industrial revolution (Industry 4.0) will have a significant impact on all aspects of socio-economic life in all countries around the world, said Vu Thi Mai, deputy minister of finance, at a workshop on Thursday.

The workshop discussed the importance of Industry 4.0, and especially its impact on the finance sector.

Reviewing the application of information technology in the finance sector, Mai said that in the past the sector had maintained rapid and steady development and mobilised financial resources efficiently for the country’s socio-economic development.

“In order to continue these achievements, the contribution of information technology to the sector must be significant,” she said.

Until now, information technology has been applied deeply and extensively in almost all financial activities, becoming an indispensable part of key activities such as State budget management, e-payment and government bond management, implementation of e-taxation, e-customs, national and ASEAN one-stop mechanisms and public debt management. The period from now until 2030 is important for the implementation of strategic breakthroughs in the development of the digital finance sector in line with the Government’s orientation.

Mai affirmed that the sector would be the leading unit among governmental agencies in the e-Government roadmap to 2020.

The role of information technology is important, as the application of IT aims to modernise the finance sector. Systems will manage, develop and provide modern public finance products, serving people and businesses, based on the technological achievements of the industrial revolution 4.0, Mai noted. Mai also highlighted major hurdles that the finance sector must be overcome.

These include successfully developing e-finance by 2020, establishing an open finance sector by 2025, and striving to complete the goal of fully converting to digital finance by 2030. The sector, with the support of advanced technology, will also strive to meet international standards and reach the level of modernising the governmental financial sector in the leading group of countries in Southeast Asia. At the workshop, experts also said that the inevitable shift from simple digitisation (the third industrial revolution) to innovation based on technology (the fourth industrial revolution) means each sector will have to adapt.

For the financial sector, to be ready and proactive in the 4.0 industry, it is imperative to have breakthrough solutions, said experts.

According to Dang Duc Mai, director of the Department of Financial Informatics and Statistics, in the future, the Ministry of Finance should continue to step up and successfully build e-finance, an open financial database and apply data analysis tools.

PPC sees profit surpassing target
     
Pha Lai Thermal Power Joint Stock Company (PPC) in the northern province of Hai Duong earned some VND881 billion (US$38.7 million) in pre-tax profit in the first nine months of this year, exceeding target by 22 per cent.

According to financial news website cafef.vn, PPC previously targeted pre-tax profit of VND723 billion for the year 2017.

The company attributed the increase to the rise in electricity production and higher average electricity prices compared with the same period in 2016.

During the first nine months of 2016, PPC reported a loss of VND300 billion in pre-tax profit.

The company’s total nine-month revenue reached VND4.6 trillion, up VND180 billion against last year.

As of the end of the quarter, PPC’s short-term financial investments decreased five times to VND450 billion. Outstanding debts also fell by more than a half to VND2.3 trillion, of which short-term debts were more than VND987 billion, down 35 per cent compared with the beginning of the quarter, while long-term debts stood at nearly VND1.4 trillion, down 64 per cent. 

SMEs get chance to connect with debt investors
     
Small and medium-sized enterprises (SMEs) operating in Viet Nam, who contribute towards sustainable development and are seeking debt capital and investment readiness assistance, now have the chance to connect with investors by applying for the inaugural Capital Mobilisation Challenge for the Southeast Asian Region.

The challenge is designed in the event that SMEs in Viet Nam and in the Southeast Asian region (SEA) face an array of sustainable development challenges due to their diverse geographic, economic and cultural attributes. A snapshot of these challenges includes access to clean energy, health services, sustainable economic growth, adequate infrastructure and reliable water and sanitation services.

Therefore, the programme aims at addressing SMEs’ financial inclusion by improving their investment readiness level while concurrently mobilising investors.

Local SMEs actively promoting sustainable development in one of the aforementioned thematic areas and in need of US$500,000-$2 million in debt capital are encouraged to apply for the challenge.

The competition was launched in September 2017 and organised by Unkapt Capital, a unit of Australia’s Evermore Money Management, in collaboration with Melbourne-based financial advisory service firm Pennam Partners.

Successful candidates at the competition will be eligible for awards worth up to $50,000, which include complimentary investment readiness bootcamp “Demystifying Private Debt,” up to $10,000 technical assistance grant, advisory support from Pennam Partners, and/or application for fee waiver and access to the Unkapt platform.

Upon access to Unkapt, successful applicants will also have the opportunity to list and showcase their debt capital raising offer on the Unkapt platform with a view to facilitating introduction to private debt investors.

Unkapt is an alternative lending and cross border capital raising platform for SMEs seeking to raise debt capital through accredited investors. Unkapt offers embedded deal execution, advanced credit analytics and interactive tools that all work to lower the engagement barrier between the investee and investor.

For more information on the Capital Mobilisation Challenge, visit cmc.unkapt.capital for the infopack, application package and FAQs. The challenge application phase closes on October 31, 2017. Interested parties should sign up at the earliest. 

Vincom Retail heads to IPO

Vincom Retail, the Vietnamese mall operator backed by Warburg Pincus, should see a market value of $3.1 billion to $3.4 billion when it lists next month in what will be Vietnam’s largest ever initial public offering (IPO).

Existing shareholders such as Warburg Pincus and Credit Suisse are offering a combined 380.2 million shares at VND37,000 ($1.63) to VND40,600 ($1.79) apiece, for a price of $620 million to $680 million in total, according to deal terms obtained by foreign newswire Financial Times.

Singapore’s sovereign fund GIC Pte and Franklin Templeton Investments are among cornerstone buyers that have agreed to purchase about $382 million of stock, or 59 per cent of the base offering, assuming deal prices at the midpoint.

Vingroup did not immediately respond to a request for comment on the IPO’s terms.

The company, an arm of Vietnam’s largest developer Vingroup, is raising funds as economic growth in the country lifts living standards and increases shoppers’ disposable incomes. 

The benchmark VN-Index this month hit its highest level since 2008, while the Asian Development Bank (ADB) forecasts its economy will expand 6.3 per cent this year.
Vincom Retail’s deal would be the largest-ever share sale from Vietnam’s private sector. Even at the low end of the price range, the offering would push the country’s IPO market to its highest volume in a decade. Vietnam has seen $422 million in first-time share sales so far this year.

The bookbuild started on October 16 ahead of an expected allocation on October 26 and shares in the company being listed on November 6. Citigroup Inc., Credit Suisse, and Deutsche Bank are among those arranging the sale.

Other cornerstone investors in the offering include Genesis Investment Management LLP, HSBC Global Asset Management, and the London-based fund manager TT International, according to October 16’s terms. 

Avanda Investment Management Pte, the Singapore money manager co-founded by former GIC Group Chief Investment Officer Mr. Ng Kok Song in 2015, and Vietnamese investment firm Dragon Capital, have also committed to invest in the IPO.

Warburg Pincus led a group that bought a 20 per cent stake in Vincom Retail in 2013, in the US private equity firm’s first deal in Vietnam. It completed another $100 million investment two years later. Vincom Retail owns shopping centers such as Vincom Mega Mall Royal City and Vincom Mega Mall Times City.

Since Warburg Pincus’s initial investment, Vincom Retail has expanded its portfolio from fewer than five properties to around 40 malls totaling 1.1 million sq m, people familiar with the matter said in August. It has more than 60 per cent market share in the country’s modern retail industry.

October 20 deadline set for Sabeco divestment plan

As the Prime Minister has agreed on the size of the stake to be sold, the Ministry of Industry and Trade (MoIT), which controls the Saigon Beer Alcohol and Beverage Corp. (Sabeco), now has until October 20 to submit a divestment plan for the country’s largest brewer.

Many foreign brewers have been looking at a possible investment in the producer of the Bia Saigon and 333 brands since it was earmarked for equitization, but long-stated plans from the government, which still owns about 90 per cent, to sell a majority stake have been met with repeated delays.

The sales plan from the ministry will be reviewed by Deputy Prime Minister Vuong Dinh Hue, who oversees economic and financial activities, before it is sent for a higher level of approval within the government. After government approval is secured, MoIT will prepare a prospectus for the sale, said Mr. Dang Quyet Tien, Head of the Ministry of Finance’s Corporate Finance Department.

“The Prime Minister has agreed to sell 53.59 per cent this year, but whether it can be sold this year we don’t know as yet,” Mr. Tien told the media last week. “Several foreign brewers, including Kirin and Anheuser-Busch InBev, have been in touch and are waiting.”
If completed, the deal would reduce the State holding to 36 per cent from the current 89.6 per cent, with the new ownership structure assuring the government will retain the right to veto on any company decisions.

The value of the shares up for sale is estimated at $4.2 billion. Currently enjoying a 40 per cent share of Vietnam’s beer market, Sabeco has maintained charter capital of VND6.4 trillion ($284.4 million) since its equitization in 2008, when 10 per cent was offered for sale, half of which was purchased by Dutch brewer Heineken.

MoIT has now been working with advisers on various options for the stake sale. The government wants to fully divest from Sabeco and the smaller Hanoi Beer Alcohol and Beverage Corp. (Habeco).

Sabeco’s shares closed at VND272,000 ($12) apiece on October 13, putting its market value at VND174.4 trillion ($7.7 billion). Expectations that the government would sell its stake in Sabeco has helped the share price jump nearly 110 per cent since its debut on the Ho Chi Minh Stock Exchange (HSX) on December 6 last year.

The spike in Sabeco’s share price due to high demand and a small float has also complicated matters, making it difficult for industry buyers - including Heineken - to step in.
In 2016, Sabeco recorded VND30 trillion ($1.32 billion) in revenue and VND4.6 trillion ($202.5 million) in after-tax profit, yearly increases of 10 per cent and 28 per cent, respectively. It posted VND15.75 trillion ($693.3 million) in revenue in the first half of this year and VND2.56 trillion ($112.7 million) in after-tax profit.

Empire Group CEO: Now a great time to invest in Da Nang

This is a great time for large domestic and foreign enterprises who have not yet invested in Da Nang to do so, Mr. Nguyen Thanh Nam, CEO of the Empire Group, the developer of Cocobay Da Nang, told the 2017 Da Nang Investment Forum on October 15.

The forum was an opportunity for the central city to call for investors in a series of projects valued at over VND30 trillion ($1.32 billion) in total. The city also granted investment certificates to a number of enterprises at the forum.

According to Mr. Nam, Da Nang has been a bright spot for foreign direct investment (FDI) attraction thanks to its road, air, and sea transport infrastructure. The city has also received a strong wave of investment from domestic corporations.

“Investors are grateful to the city for its efforts in improving the business and investment environment, by setting up the Da Nang Investment Promotion and Assistance Board to implement a ‘one-stop shop’ to simplify procedures,” Mr. Nam said.

Da Nang has gathered together the most favorable factors for businesses to invest, and he believes the city will be a successful investment destination.

Mr. Dang Minh Truong, CEO of Sun Group, said that Da Nang is a good example of success when it comes to tourism infrastructure and services, bolstering tourism growth.
He also suggested that the government create a mechanism for Da Nang authorities to be given the right to self-determination in the use of natural advantages for tourism development and to supervise local businesses no more than once a year to avoid causing problems in business activities.

Addressing the forum, Ms. Almut Roesner, Executive Director of Eurocham, said the chamber became the first foreign trade body to set up a representative office in Da Nang, in November 2016.

Over the years, EuroCham has conducted more than ten events in the city, including large-scale annual events such as the Economic Forum and the release of White Papers.
“The success of European companies in Da Nang has contributed to attracting more investors to the dynamic city in the context of the EU-Vietnam Free Trade Agreement being ratified next year,” she said, and also stressed that EuroCham would continue support the city in becoming the leading investment destination in Vietnam.

Dat Xanh Mien Bac & Defuco Vietnam sign MoU

Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac, and Mr. Vu Tuan Truong, General Director of Defuco Vietnam (DFC), have signed a memorandum of understanding (MoU) in Hanoi.

This is a milestone marking the development of both businesses. DFC will become a strategic unit accompanying Dat Xanh Mien Bac in its real estate endeavors in Vietnam.
“This cooperation will bring great benefits to real estate developers in the process of finishing products before being launched on the market,” Mr. Quyet said. “Customers of real estate projects distributed by Dat Xanh Mien Bac will be consulted by DFC before and after the decision to buy a house.”

DFC’s experienced and creative staff will provide in-depth consultancy on architecture, interiors, landscapes, and utilities for Dat Xanh’s real estate projects in the country.
The cooperation and strategic partnership will provide the best service to customers, both parties believe.

DFC is currently cooperating with leading investors in Vietnam such as Eurowindow, BRG, G5 Invest, Movenpick, and Incomex.

DFC Vietnam was established in September 2011. It has maintained a goal of providing quality products, construction techniques, and warranty services. Its products have won the trust of many organizations, enterprises, and individuals.

Since 2010, Dat Xanh Mien Bac has distributed more than 300 projects, conducted investment in eight projects, and consulted on leases at more than 100 products.

CBRE to manage FLC Twin Tower

CBRE Vietnam has been officially selected by FLC Land and the FLC Group as the property manager for the FLC Twin Tower project.

Located at 265 Cau Giay Street in Hanoi’s Cau Giay district, FLC Twin Towers occupies a prime location nearby a station on Metro Line No. 2a which will provide seamless access to the rest of the city once the urban railway line opens.

The mixed-use complex sits on 163,188 sq with two towers - a 50-story residential tower and a 38-story office tower - and a five-floor retail podium. It’s expected to go into full operations in June 2018.

Ms. Dang Phuong Hang, Managing Director of CBRE Vietnam, said it is honored to be chosen to help launch operations at FLC Twin Towers. 

“We believe that, by applying careful asset management that combines our operational and leasing skills, we can make a more positive impact that will help FLC Twin Towers become a highly desirable address for office occupiers seeking a convenient workspace, retail tenants who target the community segment, and the transport retail segment (from the urban railway line), as well as residents looking for a pleasant environment with modern facilities in the growing center of Cau Giay,” she said. 

“We are committed to providing a great service to all users of the project, to support their businesses, families, and customers so they can take full advantage of the project’s location.”

CBRE Vietnam was also recently selected by the Gelex Group to manage its Gelex Tower project. Located at 52 Le Dai Hanh in Hanoi’s Hai Ba Trung district, Gelex Tower has 22 floors of office space. It was completed in late 2013 and has enjoyed high occupancy rates since.

With easy access to nearby shopping and leisure facilities as well as the city, Gelex Tower provides tenants with a pleasant environment for their office.
CBRE Vietnam previously signed an agreement with the Urban Infrastructure Development Investment Corporation (UDIC Thang Long) to manage its commercial and condominium project, Sun Square, on the corner of Le Duc Tho and Nguyen Hoang in the My Dinh area in the capital.

Sun Square features two 17-story office blocks, two 34-story residential towers, and a two-story podium that will boast well-known brands such as Highlands Coffee, ApaxEnglish, O’leary Restaurant, BIDV, Vinmart, and Dingtea.

Hanoitourist introduces hop-on, hop-off buses in Hanoi

Hanoitourist, one of the country’s leading tour operators, has introduced a bus service in Hanoi that allows passengers to get on and get off at their leisure. Its 15 stops take visitors to popular sites around the capital, such as the Old Quarter, Hoan Kiem Lake, Ngoc Son Temple, Hoa Lo Prison (Hanoi Hilton), the Ho Chi Minh Mausoleum, Quan Thanh Temple, West Lake, the Temple of Literature, Thang Long Royal Citadel, and the Hanoi Opera House.

Stops are also within 500 meters of popular restaurants and hotels.

Visitors can buy a ticket for VND130,000 and join at any stop between 8am and 4.15pm. From now to October 22, they can take the bus free of charge after registering with Hanoitourist.

The hop-on, hop-off bus aims to offer tourists a new and more convenient way to uncover Hanoi’s many attractions. 

Vietnam’s capital is known for its centuries-old architecture and rich culture and history, with Southeast Asian, Chinese, and French influences. 

The old and the new combine in the city, with much to discover, from the heritage of the past to the latest in modernity. It’s also renowned for its parks, tree-lined streets, and lakes, which provide a wonderful backdrop. 

At its heart is the enjoyably chaotic Old Quarter, whose narrow streets are roughly arranged by trade and where life is lively. 

Hanoi is also a city of traditional handicrafts, such as bronze molding, silver carving, and embroidery. There are a host of famous villages, in which residents make specific handicrafts as a trade. 

Some are well-known nationwide, including pottery in Bat Trang village, bronze casting in Ngu Xa village, and glossy silk in Yen Thai village.

Hanoitourist specializes in inbound, outbound, and domestic tourism. It also organizes special types of Indochina tours, providing different packaged deals for groups and individuals, including business tours, technical visits, and MICE services. 

Private tours are available upon request and supplemental services offered, such as hotel reservations, tour guide services, business interpretation services, international and domestic air ticket booking services, airport transfers, and car rentals, among others. 

2008 marked a new development for Hanoitourist, with its website www.hanoitourist-travel.com (English version) coming online in January and allowing travelers from all around the world to book tours and pay directly using credit cards.

Deputy PM requires to put in place all BOT tollbooths

Deputy Prime Minister Trinh Dinh Dung has required relevant agencies to review all BOT (Build-Operate-Transfer) projects which have been invested, exactly determine toll levels and collection time, put tollbooths in place to harmonize benefits of the state, investors and road users.
 
Mr. Dung has just drawn conclusions after a meeting on public order and security at some BOT tollbooths.

According to Mr. Dung, mobilizing social resource through models such as BOT is the right policy of the party and the state. It has created a new look for traffic infrastructure in road and airway fields. Projects have promoted their efficiency contributing in improving the economy’s competitive ability.

Still, construction and operation of some BOT stations have showed some problems from investment preparation phase to technical design establishment, assessment and approval, and determination of total investment capital determination and toll level.

Most investors have been nominated and some investors’ ability is limited. There are problems in capital mobilization, construction time of a work is long, quality of some projects do not meet requirements, work exploitation and operation are unreasonable causing public objections.

Explaining reasons for the above problems, Mr. Dung said that the legal system for Public Private Partnership (PPP) and BOT contracts is asynchronous. State management in BOT form investment field has been inadequate, inexperienced and inefficient. Planning of tollbooths has been unscientific.

To solve the issues, the Government has required relevant agencies to continue review, supplement and improve the legal system, solve problems in a timely manner and permit pilot implementation of nonstop tollbooths.

Ministries, agencies and localities have focused on solving problems involving construction, management and exploitation of traffic BOT projects by reviewing works to draw the balance sheet of all projects to redetermine toll collection time, re-examine locations of toll station system and suitably rearrange some stations.

He required the Ministry of Transport to review, adjust and supplement national, regional and local strategies, plans to develop traffic infrastructure in fields covering roadway, railway, waterway and airway in specific phases to continue investing, managing and efficiently running traffic BOT projects, ensure traffic safety and security in provinces.

The ministry should give priority to projects largely significant to socioeconomic development including North-South Expressway; improve construction policies including PPP form, mechanisms to raise funds from credit institutions for traffic development and investment policies with state budget to reduce toll collection time of projects.

He required to rightly and sufficiently calculate total investment capital of projects to choose investors, determine toll level and collection time and arrange tollbooths.

The Ministry of Transport should strengthen cooperation with other ministries and provinces to improve investment efficiency, reduce loss and waste, well manage traffic works, toll collection and control toll levels.

Specifically, the ministry should sufficiently supply information about traffic works and BOT projects, point out good things and problems, clearly state its point of view about different public opinions about investment capital, tollbooth locations and toll levels.

The ministry should also take the initiative in getting opinions from scientists from research institutes, universities, professional associations to have scientific and practical foundations to build traffic works under BOT form.

In addition, he prompted implementation of non stop toll collection at stations nationwide and put in place tollbooths.

The Ministry of Finance has been asked to work with the Ministry of Transport to study and issue norms to place road toll stations including the distance between two stations.

The Ministry of Public Security should coordinate with authorized agencies under the Ministry of Transport and provinces to strictly handle those taking advantage of BOT toll problems to cause public disorder at toll stations to prevent traffic jam and ensure social safety and order.

Thirty agricultural projects enter final round

Thirty agricultural startup projects were selected to enter the final round after three semifinals taking place in Ho Chi Minh City, the Mekong delta province of Dong Thap and Hanoi.
 
The competition for agricultural startup projects organized by the Business Support Association (BSA) and its strategic partners received 117 entries involved in agriculture. The organizer selected 98 entries for the semifinals.

Projects of ethnic minority were highly assessed amongst 16 projects to enter the semifinal in Hanoi.

For instance, the project “Value chains of herbs and agricultural produce Quan Ba” of Ly Ta Giang in the northern province of Ha Giang that is aimed at producing Dao ethnic minority group’s traditional products such as brocade, essential oil, herbs and medicine while Orgama Company’s project focuses on matcha tea powder in ecological production.

In his project, Vu A Ly in the northern province of Son La takes heed to Hmong Home products, cultural services and produces including corn wine, brocade, clothing, vegetables and black chicken Hmong.

Entrants will be guided how to make business plan scientifically and professionally. Valuable and feasible projects will be introduced to potential investors.