Promo tours sell well at festival

Local travel firms have reported good sales thanks to promotional tours at the four-day annual Tourism Festival at September 23 Park which ended on Sunday.

Saigontourist Travel Service Company was quoted by Tuoi Tre newspaper as saying that around 9,000 visitors dropped by its booth and more than 5,000 of them booked tours and asked for travel advice at the event, up over 30% compared to last year’s event.

Vietravel said more than 400 guests booked its tours at the event with total sales amounting to more than VND6 billion (more than US$278,500), surging 40% over last year’s event. Meanwhile, Ben Thanh Tourist sold out its packages for the upcoming six-day holiday on April 30 and International Labor Day.

As observed by the Daily, many travel companies promoted tours for the Reunification Day and International Labor Day, and discounted tours attracted more buyers.

Tu Quy Thanh, director of Lien Bang Travelink Company, said as consumers still tighten spending, they opted for low-priced tour packages.

“Tours with price discounts of 30-40% were selling well,” he said and added that his company obtained sales of VND300 million at the festival.

The domestic tours preferred by many guests take in Danang, Hoi An, Hue, Phu Quoc Island and the northwest region. Meanwhile, most-sold outbound tours include Thailand, Singapore, South Korea, Japan, Bali of Indonesia, Hong Kong and Macau.

More visitors purchased tours and made payments on the spot. Tran Thi Viet Huong of Vietravel said this was the first year the company had accepted payments for its tours at the festival.

Organized by the HCMC Department of Tourism, the festival attracted some 300,000 visitors. Many companies and localities took part in the event to promote food specialties, pharmaceuticals and organic vegetables.

‘Made in Vietnam’ label popular in RoK, Singapore

Lotte and Saigon Co.op have announced plans to substantially increase the stock of Vietnamese goods on the shelves of their stores in the RoK and Singapore during the upcoming year.

During a recent conference, Le Ngoc Dao, deputy director of the HCM City Department of Industry and Trade, emphasized that the 2015 price stabilization program will also provide support for local businesses to increase exports.

This year, banks will provide loans of VND 11.850 billion to the price stabilization program at interest rates ranging from 0.5% to 2%. Notably, banks will also provide supplementary credit packages of VND 900 billion to support businesses.

Hong Won Sik, Lotte Mart Vietnam General Director said it also began to stock the shelves of its stores with Vietnamese goods in the RoK, which generated revenue of US$250,000 last year.

Saigon Co.op Deputy Director Nguyen Thanh Nhan said his supermarket also exported Vietnamese goods to the Fairprice supermarket chain in the RoK, which he said spawned revenue of VND15 billion.

Michael Wiedmann, Metro Vice President - Group Director Public Policy said he believes that several Vietnamese goods like tra and basa fish will secure a firm foothold in the German and European markets  in the future.

Emart fast tracks supermarket centre in HCM City

At an Emart partner’s conference on March 31, Choi Kwang Ho, a company director, announced that its first supermarket in Vietnam is being constructed on the fast track and is expected to open in the near future.

HCM City will soon see the long awaited opening of the company’s first Emart supermarket, which is going up in the Go Vap district, Ho said.

To date he said the company has pumped about US$60 million into the project, adding that it is also speeding up formalities to open a second centre in Tan Phu district of the city.

The leading supermarket has joined hands with the Binh Duong-based U&I Group to open a supermarket chain in Vietnam.

It holds an 80 % stake in an Emart Vietnam joint venture, which has plans to invest US$1 billion to open 52 supermarkets and stores in urban areas around the country, the Saigon Times daily has reported.

Once completed, this will be the largest supermarket in the city specializing in providing food, household utensils, and clothing made in the RoK. The trade centre will also have entertainment for children, restaurants and cinemas.

During the event, representatives from Emart Vietnam also discussed opportunities for roughly 300 Vietnamese distributors to join the company’s supply chain not only in Vietnam, but around the globe.

The company began operations in the RoK in 1993, and since has expanded rapidly opening 153 centres in the RoK and 10 centres in China. For 2014 the company recorded worldwide gross revenue of US$13.2 billion.

VIB named a leading Asian Trade Bank

The Vietnam International Bank (VIB) will be honoured by the Asian Development Bank (ADB) on April 22 as one of the top Trade Finance Banks in Asia.

The award will be presented by the ADB Trade Finance Program at a gala dinner of the International Chamber of Commerce's (ICC) Banking Commission Annual Meeting to be held in Singapore.

This is the first Annual Awards Ceremony to be held by the Trade Finance Program in recognition of the significant contribution of its partners to the promotion of trade finance in the Asia and Pacific region.

The ADB’s Trade Finance Program fills market gaps for trade finance by providing guarantees and loans to banks to support trade. Backed by its AAA credit rating, ADB's Trade Finance Program works with over 200 partner banks to provide companies with the financial support they need to engage in import and export activities in Asia’s most challenging markets.

The program supports a wide range of transactions from commodities and capital goods to medical supplies and consumer goods.

Automobile imports from India surge high

Around 4,363 Indian automobiles were imported into Vietnam in the first two months of this year, the General Statistics Office of Vietnam (GSO) reported.

India took the top place among Vietnam’s 12 car importers trailed by the Republic of Korea with 3,395 units, China (2,878) and Thailand (2,070).

Russia, with only 8 cars, was at the bottom of the list.

Car imports from India tend to witness a sharp upturn. In last year’s corresponding period, Vietnam just imported 864 vehicles from India, equal to 20% of this year’s figure.

Most of cars imported from India were low-cost tourist vehicles.

Packaging exhibition opens in HCM City

Vietnam's leading international processing and packaging exhibition, Propak Vietnam, opened in HCM City on March 31.

Organised by Singapore Exhibition Services and local partner VCCI Exhibition Services to serve the then new and upcoming processing and packaging industry, Propak Vietnam 2015 marks its 10th anniversary this year.

This year's event not only showcases many new technologies and equipment but also offers networking opportunities for industry professionals.

The three-day exhibition has attracted 267 exhibiting companies from 28 countries and regions, with foreign exhibitors occupying 79% of the 6,000sq.m of exhibiting area.

There are eight international pavilions representing Germany, the Republic of Korea, Italy, Japan, Taiwan (China), Singapore and Thailand.

Bruna Santarelli, Trade Commissioner at the Italian Trade Commission in Vietnam, told Vietnam News that her country's 11 best plastics and packaging manufacturers were taking part.

The Italian firms featured at this year's exhibition include experienced manufacturers of an array of packaging machinery for extrusion lines, thermoforming, multi-layer blown film lines, pasteurising, filling, cleaning, labelling, and palletising.

The Italian businesses will showcase their home country's engineering ingenuity and their latest developments to manufacturers in Vietnam.

Italian design remains among the most sought internationally and the government of Vietnam believes that applying this technology in Vietnam is integral to meeting its widely stated goal of industrialisation by 2020.

This Italian-Vietnamese partnership has been working well and the future looks bright.

Last year Italy's packaging exports to Vietnam were worth EUR23.4 million (US$25.2 million).

BT Tee deputy chief representative of Singapore Exhibition Services' representative office in Vietnam, said: "The future for producers and exporters in Vietnam is bright."

"In 2014 Vietnam became the largest exporter to the USA, ahead of ASEAN's more established manufacturing bases."

"Strengthening retail sales, FMCG consumption, accelerating industrial production and improving investment sentiment point to an even larger Propak Vietnam event in the coming years".

There will be a seminar titled "Vietnam - Food Safety, Green Packaging and Eco Manufacturing" to discuss some burning issues in Vietnam.

At the Saigon Exhibition and Convention Centre, District 7, Propak Vietnam will go on until April 2, attracting an estimated 7,600 visitors.

Hanoi’s state budget collection increased 10.6 percent in Q1

Hanoi is estimated to collect a total of 46.3 billion VND (2.17 billion USD) to the state budget in the first quarter of this year, a 10.6 percent annual increase, according to the city’s Department of Statistics.

The figure, the highest since 2012, represents 27 percent of the yearly target.

Meanwhile, the local budget revenue reached 16.2 billion VND (760 million USD), meeting 28.7 percent of the yearly plan.

The municipal Tax Department has taken measures to intensify budget collection, including administrative procedural reforms and expansion of online tax declaration, said Nguyen Thi Hai Yen, Head of the Department’s Communication and Support Office.

The Department is also continuing to improve online tax services with a view to simplify procedures for taxpayers.

Industrial production up 9.1 percent in Q1

Vietnam's industrial production index (IIP) saw relatively high growth in the first quarter of this year, according to the General Statistics Office (GSO).

The index grew 9.1 percent, compared with 5.3 percent in the first quarter last year and 4.9 percent in 2013.

GSO analysts attributed the improvement to the industrial consumption index's strong growth in the first two months of this year. It rose 14.7 percent on the year, much more than last year's 4.3 percent during the same period.

The processing and manufacturing sector, which contributed more than three fourths of overall growth, increased 9.6 percent, as opposed to 7.4 percent in Q1 last year.

About 61.5 million mobile phones were produced during the first quarter, doubling last year's output. Meanwhile, production of powdered milk fell by 16.8 percent.

Other industrial products posting high IIP increases during Q1 included automobiles (52.6 percent), television sets (38.6 percent), food for aquatic products (27.4 percent), chemical paint (17.2 percent), leather and footwear (16.3 percent), fresh milk (16.2 percent), rolled steel (12.4 percent) and petroleum (9.8 percent).

Products with low IIP included aquatic products and seafood (8.9 percent), cement (5.9 percent), coal (3.2 percent) and natural gas (0.2 percent).

Sectors with decreased IIP included sugar (0.1 percent), clothes (0.3 percent), liquefied gas (6.5 percent) and motorbikes (11.8 percent).

The country's IIP increase is still low compared with increases of 14 to 16.17 percent before the world economic downturn period.

GSO analysts attributed the slower growth to low product competitiveness. Fake versions of domestic products were sold at much lower prices.

Private firms key to growth: MPI Minister

Private enterprises have laid the foundation for and imparted momentum to the development of Vietnam's economy, said Bui Quang Vinh, Minister of Planning and Investment.

The minister hailed the contributions of businesses while addressing more than 150 businesses, from both inside and outside the country, at a discussion on, "Vietnam Economy 2015: Opportunities and Challenges," held in Hanoi on March 30.

“All businesses, ranging from State-owned enterprises, to private and foreign direct investors, have played a decisive role in Vietnam's economy," he said.

He wondered why Vietnam has not taken advantage of its sizeable population being a human resource rich in intelligence and creative capacities.

“The Vietnamese Government is determined to implement reform. During the past six months, the Prime Minister has taken drastic measures to improve the country's business environment to reach and exceed the average level of nations in the ASEAN-6 in 2015 and to achieve the average level of countries in the ASEAN-4 in terms of some key targets," he added.

Specifically, the time for payment of taxes would be reduced from the current 800 hours to 300 hours this year and 175 hours next year.

Vinh said the country is facing both opportunities and challenges.

This year, Vietnam will sign several free trade agreements, as well as become part of the ASEAN economic community.

Therefore, it is important for the business community to understand the opportunities and challenges lying ahead and to prepare for integration. If enterprises did not prepare carefully, they would fail in their own country, he said.

One of the main challenges Vietnam is facing is corruption, Vinh said.

He cited the example of a business from the European Union, which wanted to purchase products from Vietnamese firms, but local companies had demanded a commission.

"Enterprises demand transparency from the Government and management agencies. However, they have to be transparent themselves too," he said, adding that transparency is a vital requirement for the progress of the economy.

Vinh confirmed that the Government's reforms will become a reality and not remain on paper.

Ricky Tan, Chairman of Kinder World, asked how could the time taken for completing investment procedures be reduced from the current 45 days to 15 days when it had taken several firms as many as 3-4 years to complete such formalities.

He suggested a strict mechanism to bring the revised Investment Law into operation.

"The reduction in time has been a big effort. However, the decision from the Department of Planning and Investment would not be applicable only to localities. It would relate to other procedures as well. This time, we will have to adopt drastic measures to prevent staff from harassing businesses."

Tran Thanh Trong, General Director of the Sang Ban Mai Company, said some units required wholly imported products in their bidding.

Minister Vinh said the newly promulgated law on bidding stipulates that the Government encourage participation of domestic companies in the bidding.

He asked relevant agencies under the ministry to study the issue and resolve this shortcoming as soon as possible.

The discussion offered policy makers and businesses a chance to voice their concerns, thus creating momentum for the economy's development.

This year is being seen as the year for businesses as the economy depends heavily on the community.

Vietnam's economy saw a clear recovery during the first quarter of the year, with GDP growth touching 6.03 percent and paving the way for 6.2 percent target for the whole year.

Business role in knowledge-based economy spotlighted

Scientists, managers and enterprises gathered at a workshop on March 31 to discuss measures to leverage the strengths of enterprises to make contributions to the country’s knowledge-based economy.

The event, organised by the National Institute for Science and Technology Policy and Strategy Studies under Ministry of Science and Technology, created an opportunity for enterprises to share their experiences in investment and building intellectual labour to enhance sustainable development.

In the past decade, the Ministry has deployed a business-oriented strategy to innovate national technology, considering it a decisive factor of the economy.

The Ministry has made recommendations to facilitate mechanisms for enterprises to apply technology in their operations.

Domestic demand drives slow growth: HSBC

Vietnam's growth, though not stellar, is continuing, as latest high-frequency indicators suggest domestic demand is rebounding, albeit at a gradual pace, according to HSBC's Asian Economics quarterly report.

According to the report, retail sales expanded 13 percent year-on-year in February, driven by services and tourism, marking an 11.4 percent increase. Also, imports surged, rising 20.7 percent over the beginning of the year.

Most of the increase was due to higher input imports, suggesting that exports will increase in the months ahead. While exports expanded modestly, at 7.6 percent over the same period last year, the rate of increase would be positive, overall, considering the downturn of the commodity cycle.

With the exception of cashew nuts and tea, however, all commodity exports contracted. What is maintaining the trade figures is Vietnam's rising competitiveness in labour-intensive manufacturing, noting that textiles, footwear, electronics and phones all rose sharply. Further, the bank expected that output would continue to expand in the months ahead.

The February PMI mirrors this rising output, despite a decline in new export orders. In spite of slowing global demand, the country's exports were expected to rise, thanks to a steady increase of FDI inflows. Domestic demand will also likely stage a modest recovery.

After a sharp deceleration in 2011, domestic demand has gradually improved, though it remains weak. The drop in oil prices will likely boost consumer purchasing power, both directly, due to lower oil and transportation costs, and indirectly, as producers pass on savings to consumers by lowering output prices. Gradually rising income is another reason for improving consumer demand.

HSBC forecast private consumption to accelerate to 5.6 percent in 2015, from 5.4 percent in 2014.

Vietnam remains a net importer of petroleum, with the decline in oil prices bolstering its trade position. It is also trade-intensive, especially the non-oil trade, which means that producers and exporters will benefit from lower input costs. Low inflation will additionally give the government space to raise social service costs, as well as electricity prices. The State Bank of Vietnam would further be tempted to cut the open market operation (OMO) rate by 50bp to 4.5 percent.

Insiders seek ways to iron out agricultural export difficulties

Exporters of agro-forestry-fishery products gathered at a meeting with State officials on March 30 to seek ways to address difficulties amid a dramatic fall in the shipment of these commodities during the first quarter.

From January-March, agro-forestry-fishery exports reached 6.13 billion USD, tumbling 13.2 percent from a year earlier.

Although aquatic exports traditionally contract in the Q1 and rise in the following months, they plummeted 23 percent during the reviewed time - the biggest nosedive in the last five years.

Deputy General Secretary of the Vietnam Association for Seafood Exporters and Producers (VASEP) Nguyen Hoai Nam said shrimp shipments dropped nearly 30 percent and those of tra fish and tuna decreased 18 percent and 13 percent, respectively.

Such dramatic declines were attributable to anti-dumping duties levied on Vietnamese shrimp and tra fish exports in the US, one of the largest markets for Vietnam’s seafood.

Shrimp and tra fish shipments to the US have slumped 44 percent while revenue from exports to the EU and Japan, other traditional major markets, fell respectively by 11 percent and 15 percent.

Nam ascribed the situation to the fact that major aquatic exporters like India and Thailand are harvesting and their currency exchange rates are uncontrolled, disadvantaging Vietnamese firms.

He said the VASEP considers production cost reduction the essential method to cope with the current export obstacles, but is also urging additional assistance from the Ministry of Agriculture and Rural Development (MARD).

The coffee industry is also facing export challenges; during the reviewed period, the country shipped 350,000 tonnes of coffee worth 734 million USD abroad, down 41.4 percent in volume and 37.3 percent in value.

The Central Highlands, home to the majority of Vietnam’s coffee growing area, is undergoing a prolonged drought, said the Vietnam Coffee and Cocoa Association, adding that coffee prices are declining, hindering farmers and businesses’ efforts to improve production.

It forecasts coffee export prices will continue to decline.

Pepper sales in the first quarter likewise dropped by 23 percent from the same period last year despite an increase in prices, the Vietnam Pepper Association reported, pointing to the fact that the pepper cultivation area is rapidly expanding and farmers lack cultivation experience.

At the meeting, MARD Minister Cao Duc Phat pledged his ministry will bridge association members with localities applying certified production practices to improve the value of Vietnamese pepper.

Between January and March, the export of outdoor wooden furniture destined for Europe plunged sharply, said Vice Chairman of the Vietnam Timber and Forest Products Association Nguyen Ton Quyen.

The same trend was recorded in woodchip shipments to China, Japan, and the Republic of Korea (RoK). Notably, the RoK imports of Vietnamese woodchips sank by 29 percent, he noted.

Quyen said though businesses have cooperated with one another to minimise expenses, the MARD needs to issue policies facilitating companies to use domestically-sourced materials.

During the function, associations and businesses requested drastic actions to simplify administrative procedures and agricultural land use taxation.

Meanwhile, Minister Phat urged businesses to step up trade promotion to maintain export growth, adding that the MARD will report their proposals to the Government. He also asked his ministry’s departments to work with associations and companies to seek measures to streamline export procedures.

Binh Duong enjoys Q1 trade surplus

Trade surplus in the southern province of Binh Duong reached 591 million USD in the first quarter.

Exported goods were worth a total of 4.22 billion USD in value, an annual increase of 15.6 percent. The foreign-invested sector contributed 81.8 percent to the sum, up 16 percent from 2014.

Major exports maintained momentum, including woodwork products, apparel, footwear, handicrafts and electronic devices.

Meanwhile, Binh Duong imported 3.63 billion USD worth of commodities, a 15.5 percent rise compared to the same period last year. The foreign sector accounted for 79.2 percent of total import value.

According to the provincial People's Committee, State initiatives to clear business hurdles took effect in Q1, with enterprises recording strong and stable operations.

Most businesses have already signed goods contracts for the second quarter, while some larger companies have completed deals for the third quarter.

Binh Duong recorded Q1 industrial production value of almost 50 trillion VND (235.3 million USD), up 11.2 percent year on year.

Also in the reviewed period, the province attracted 321million USD from foreign direct investment (FDI) in 63 existing and new projects, bringing the number of FDI projects in Binh Duong so far to 2,449 projects with the total registered investment to 20.7 billion USD.

The province aims to attract one billion USD from FDI in 2015. To that end, the province will focus on industries with high levels of technology and added value, while creating favourable conditions for investors in terms of site clearance, overall social technological infrastructure and administrative reform.

During the first months of 2015, several foreign business groups have conducted field research in the province to seek business opportunities.

Binh Duong, together with Dong Nai, Tay Ninh, Ba Ria-Vung Tau, Binh Phuoc, Long An, and Tien Giang provinces, and HCM City, form Vietnam's southern economic region.

Hai Phong: Volume of goods hit 15.48 million tonnes

The total volume of goods passing through ports in the northern city of Hai Phong reached 15.48 million tonnes in the first three months of 2015, up 14.25 percent from the same period last year and representing 23.82 percent of the yearly target.

The Hai Phong Port Joint Stock Company (JSC) make the largest contributions to the goods transport volume with about 5.33 million tonnes of goods carried through the port.

According to General Director of the Hai Phong Port JSC Nguyen Hung Viet, the port has already been determined a key port in the northern region and plans to continue improving its service quality, administrative reform and income for staffs.

In an attempt to enhance port management and logistics service, the Hai Phong Port cooperated with the German development agency GIZ to conduct a training course for 40 staff members in January 2015 focusing on sustainable port management, information sources and seaport collaboration, marketing, transportation corridors and regional development.

The port has also carried out several projects on infrastructure, equipment and information technology, including a container loading project in the Tan Vu Port and a project to build 6 berths, receiving ships with capacities up to 10,000 TEU at the Hai Phong international Port.

In 2015, the Hai Phong Port JSC aims to transport 20 million tonnes of cleared goods and earn roughly 1.5 trillion VND (72 million USD).

Hanoi’s export turnover enjoys 4.3 percent rise in Q1

Hanoi’s export turnover in the first three months of this year reached 2.67 billion USD, up 4.3 percent from the same period last year.

The city’s key exports in the reviewed period included textiles and garments , processed agro-products and electronics, while its main markets were Japan, China, ASEAN member nations and the US.

The total sales of goods and services in Hanoi in the first quarter (Q1) hit over 442 trillion VND (21 billion USD), an 11.9 percent rise compared to the same period last year.

Retail sales earned more than 104 trillion VND (4.9 billion USD), an annual increase of 11.7 percent.

Meanwhile, Q1 export turnover for the entire nation was valued at 35.7 billion USD, climbing 6.9 percent from 2014. Some commodities saw observable shipment increases, including telephones & components (21.9 percent) and textiles & garments (7.8 percent).

Demand for food additives rising in Viet Nam

With demand from food and foodstuff producers increasing, the market for additives in Viet Nam is promising, according to insiders.

Speaking with Viet Nam News, Dang Thi Phuong Linh, deputy director of the Viet Nam Meat Industries Limited Company (Vissan), said last year her company bought additives for over VND200 billion (US$9.5 million).

"As production keeps increasing, the demand for food additives also climbs."

For her company it increased by 8-10 per cent a year, she said.

Very little of the demand in the country is met by local production, with imports accounting for most of the supply.

Experts said that in modern society, food additives were vital for chefs and food and beverage producers to develop new products with improved taste and looks.

An expert on food additives from the Sai Gon Industrial University said many consumers distrusted food additives, but that was due to misunderstanding them.

At permitted levels, additives were harmless and there was huge demand for them, she told Viet Nam News.

Belgium Puratos Grand-Place Indochina, which supplies materials and additives to many restaurants and bakeries as well as ice cream makers in Viet Nam, said it saw potential in the Vietnamese market since demand kept rising.

Speaking to Viet Nam News, a company spokesperson said his company supplied up to 100 additives, and its partners included giants like Metro, Lotte, Tous Les Jours, and Kido's.

Additives accounted for 3 per cent of its revenues and would increase, he said.

The company hopes sales of bread additives will soon increase by 50 per cent.

Seeing the rising demand, tra fish exporter Vinh Hoang Company has set up a plant to produce gelatine from the skin and bones of the fish it processes.

UBM Asia, which has organised many exhibitions of food ingredients in regional countries including Indonesia, decided to organise an exhibition again in Viet Nam after one last year.

The country had much more potential than any other in the region, it said. It will now organise the second food ingredients exhibition in Viet Nam in May.

The exhibition hopes to welcome 150 local and international ingredient suppliers, up from around 100 last year.

The central province of Thua Thien Hue Province has planted 17,300ha of trees to cover the barren hills and help lift local farmers out of poverty.

Acacia forests that can be harvested for industrial wood after just three or four years have been planted in the districts of Phong Dien, Huong Tra, Huong Thuy and Phu Loc.

The World Bank has provided loans to farmers while the Ministry of Agriculture and Rural Development has given them technical support for the Forest Section Development Project.

The project grants forest land to farmers to help them escape from poverty.

"The project has helped facilitate the process of granting forest land to households and increased forest coverage on the areas more barren areas," said Tran Hung Long, deputy director of the forestry and agriculture development unit in Huong Tra District.

Ho Da The, a farmer from Phu Loc District, said he earned around VND200 million (US$9,300) per hectare over the past eight years after planting trees.

"It is a sizable amount of money and has helped improve my family's living conditions," he said.

Farmer Ho Dac Ngu said favourable loans from the project had allowed him to delay the harvest, which meant better quality wood and higher prices.

The project has also been carried out in the central provinces of Thanh Hoa, Nghe An, Quang Nam and Quang Ngai. Since March 2005, 76,500ha of Acacia trees have been planted by 43,000 households.

The project has cost $100.19 million with more than two thirds coming from World Bank loans, supported by ODA from the Global Environmental Facility, the Finnish Trust Fund for Forestry, the European Commission and the Vietnamese Government.

The Ministry of Agriculture and Rural Development regarded the project a successful one to reduce deforestation area in the Central region of Viet Nam and foster the forest land granting to farmers.

Victoria Kwakwa, World Bank Country Director for Viet Nam, said she expected the experience from the project to benefit other regions and countries and improve environmental protection.

Farmers have also asked for more funding to develop their forests and plant other species of trees.

Lien Viet Joint Stock Commercial Bank (LienVietPostBank) aims to increase its profit 75 per cent to VND936 billion (US$44.5 million) this year, Board of Directors Vice President Nguyen Duc Huong said at a shareholder meeting on Saturday.

The bank earned VND535 billion ($25.4 million) in before-tax profits last year, a decrease of 19.4 per cent over 2013 due to the economy's slow recovery. The development of new technology and networks caused the decrease, Huong said.

The bank also increased its allowance to cope with credit risks and improved its standards on categorising debt, despite keeping a low bad-debt rate of 1.23 per cent, he said.

The bank had always thought of individuals and organisations in rural areas as major customers, he said, and many of them needed preferential interest-rate policies. It allowed rural businesses to make up 40 per cent of total debts.

The bank didn't profit much from this sector, but its customer base was large and stable, and provided 85 per cent of the bank's total savings, he said. The bank also aimed to pay dividends at 8 per cent and keep its bad-debt rate below 3 per cent of total debts, he added.

This year the bank planned to raise its charter capital to VND9 trillion ($428.5 million) by selling 254 shares at VND10,000 per share, Huong said. It also wanted to raise its total assets to VND135 trillion ($6.4 billion), including VND115 trillion ($5.47 billion) raised from its customers, he said.

Last year LienVietPostBank failed to increase its charter capital from VND6.46 trillion ($307.6 million) to VND6.64 trillion ($316 million) by selling 18.7 million shares at a price of VND10,000 per share to the Vietnam Post (VNPost), Huong said.

The bank's total assets last year reached VND100 trillion ($4.76 billion), including a raise of VND77.8 trillion ($3.7 billion) from its custom ers which was an increase of 40 per cent, Huong reported. The State Bank of Vietnam (SBV) allowed LienVietPostBank to plan for a credit growth rate this year of 13 per cent.

The total capital invested in export processing zones (EPZs) and industrial parks (IPs) in Ho Chi Minh City in the first three months of 2015 exceeded 381.7 million USD, up 48.5 percent from the same period last year.

Accordingly, foreign direct investment (FDI) reached 345.5 million USD, up 43.7 percent, while domestic investment accounted for 36.2 million USD, a 118 percent annual increase.

The value of exports of businesses in EPZs and IPs in the period reached 1.1 billion USD, up 8.61 percent.

Deputy Chief of the HCM City Export Processing and Industrial Zone Authority (HEPZA) Nguyen Bach Hoang Phung commended the FDI surge in the municipality despite a nationwide reduction in the past three months.

Meanwhile, two of 22 new licensed projects were put into operation and another 10 projects are renovating warehouses and preparing to commence shortly.

In an attempt to magnetize more investment capital, the city will focus on improving infrastructure in the four industrial parks of Dong Nam, Hiep Phuoc, Tan Thuan and Linh Trung.

HEPZA will cooperate with relevant bodies to support enterprise access to concessionary funds, improve technology skills and bolster administrative reform.

To date, EPZs and IPs in HCM City have been home to 1,342 valid projects with a total investment of 8.7 billion USD, including 536 FDI projects with a total registered investment capital of 5.22 billion USD. The zones reported an occupancy rate of 54 percent.

FECON, Nakheel turning joint ideas into reality

As a leading contractor in foundation works in Vietnam,  Foundation Engineering and Underground Construction JSC, has committed to breaking into foreign markets to boost its business efficiency.

In mid-March, Foundation Engineering and Underground Construction JSC’s (FECON) leadership met with Ali Rashid Lootah, the chairman of Nakheel Group, one of the world’s leading property and infrastructure developers. During their meeting in Dubai, the two sides made great efforts to translate their joint ideas into reality.

At the meeting with their foreign counterparts, FECON chairman Pham Viet Khoa and overseas director Do Tran Nam voiced their future investment plans and discussed co-operative opportunities in both Dubai and in the Vietnamese market. Specifically, FECON leaders introduced the projects that the company is implementing in Vietnam, and proposed that  Nakheel Group become a joint investor.

For its part, Nakheel shared their specific investment plans, and introduced a raft of upcoming projects underway in Dubai where FECON can carry out the construction of foundation and infrastructure.

These open discussions, together with FECON’s proven commitment to drop anchor in overseas markets, are expected to materialise in a commitment to cooperate between the two sides.

FECON envisages opening a representative office in Dubai next month to prepare for approaching projects, as well as for the Expo Dubai 2020. This super-event, which is estimated to attract 25 million visitors, will run for six months from October 20, 2020 to April 10, 2021. FECON’s presence in Dubai will also allow it to proactively court investment from Middle Eastern investors who are seeking development opportunities in Vietnam.

Over recent years, FECON has stepped up its efforts to find business and investment opportunities as well as up-and-coming partners in overseas markets.  Specifically, the company has given priority to researching and seeking co-operative opportunities in Dubai, Myanmar, and regional markets, as well as calling private investors from Japan, the Czech Republic, and the United Arab Emirates to come on board FECON’s projects in Vietnam.

Most recently, in November 2014 FECON took part in The Big 5 in Dubai – one of the five largest construction exhibitions in the world – as a construction business representing Vietnam at the event.

Last year, the company’s total asset value hit nearly VND2.2 trillion ($102.8 million), and its revenue amounted to VND1.354 trillion ($63.2 million). Its post-tax profits surpassed VND135 trillion ($6.3 million) and earning-per-share (EPS) was VND3,042. This year, the company is set to post the revenue of VND1.8 trillion ($84 million), and profits of VND160 billion ($7.4 million).

Nakheel Group is one of the top five groups in the UAE in real estate investment and infrastructure development with an iconic portfolio of famous artificial island projects like Palm Jumeirah Island and The World Island.

With an ardent wish to realise the vision of Dubai for the 21st century, Nakheel Group is implementing a string of urban projects, as well as commercial, retail, and entertainment centres to make Dubai a world-class destination of innovative ideas.

In Vietnam, Nakheel Group plans to invest in the 125 hectare Halong Star urban and tourism complex in the northern province of Quang Ninh costing $550 million. The group is also keen on studying available investment opportunities in the province’s Van Don Economic Zone.

Nakheel Group chairman Ali Rashid Lootah is scheduled to visit Vietnam late next month.

Vietnamese SMEs to take opportunities by moving to e-commerce

The role and trends of e-commerce as well as the benefits of online trade were the highlights of a recent seminar jointly held by the Khanh Hoa Association for Information Communication Technology in collaboration with Mat Bao, one of leading domain registrars in Vietnam.

The seminar- sponsored by VeriSign Inc., a global leader in domain names and Internet security- aims to support Vietnamese small and medium-sized enterprises (SMEs) as they take advantage of the growing e-commerce opportunity in Vietnam.

“Once a business has an official online presence by owning a domain name, that business can access larger markets, not only in the country but beyond the boundaries, reaching higher potential growth and increasing its profits.

“We realise that .com is preferred by e-commerce enterprises all over the world, for its popularity, availability, reliability and stability,” said Nguyen Minh Thai, business director at Mat Bao Network.

While there are many domains available, .com is one of the Internet’s original domains and is the global online standard for doing business online, with 115.6 million domain names registered worldwide at the end of 2014, and over 17 years of uninterrupted availability.

The .com is celebrating its 30th anniversary in 2015.

In fact, e-commerce has become a very popular business application thanks to its unparalleled benefits to firms and potential reach to their customers.

Nearly three billion people around the world are online today, and over $1.3 trillion in global e-commerce sales rely on the Internet.

The huge growth of Internet-connected devices, including mobile application usage, as well as the increasing use of bank cards with thousands of new cards issued daily in Vietnam, has created a favorable market for the growth of e-commerce in the country.

According to the Department of E-commerce and Information Technology, in 2014, the total value of an online purchase of a single person per year was estimated at about $145, and B2C e-commerce sales reached $2.97 billion, which accounted for 2.12 per cent of total retail sales in the country.

In 2015, e-commerce is expected to account for $4 billion in sales in Vietnam, thus providing a huge market opportunity for Vietnamese SMEs that want to evolve their businesses and become e-commerce retailers.

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