Large-scale online fashion week kicks off Saturday

Shoppers are promised to receive many good deals at the Online Fashion Week initiated by Zalora, one of the country’s leading online fashion retailers in Vietnam, from July 25 to 31.

This is one of the largest promotion events in mid-year in Southeast Asia to enable customers to own fashion items of local and foreign brands. More than 120 brands, including Mango, Dorothy Perkins, River Islands, Miss Selfridge, New Look and Zalora Label, among others will be offered up to 50% discounts.

After three years of operation in Vietnam, zalora.vn has had over 500,000 fashion items produced by itself as well as other high-street brands in the world. Customers enjoy a free delivery service for an order worth from VND390,000 or above and free returns and refunds during the first 30 days after purchase.

“As one of the leading online fashion retailers in the market, Zalora aims to make fashion more accessible to all customers. Through our large-scale promotion programs which are similar to big sale seasons in Hong Kong and Singapore, customers have more fashion choices with reasonable prices. Furthermore, this is a good way to popularize the model of online shopping to locals and support fashion brands to sell stocks of the Spring-Summer season before the arrivals of Fall-Winter products,” said Jose Finch, Zalora Vietnam’s managing director, at a press conference in HCMC’s District 1 on Tuesday.

Finch also shared the current trends of local online shoppers who have changed their habit from shopping during office hours to all-day shopping. And thanks to the development of mobile facilities and infrastructures in the country, there is a dramatic increase from 20% to 70% of shoppers who use the app to shop instead of the web.

Finch also stressed the benefits of offline shopping that contributes to the revenue of Zalora Vietnam. Zalora has its showroom on level 2 of the Bitexco Financial Tower in HCMC’s District 1.

Green power exhibition chain kicks off in HCM City

A raft of advanced technologies and the latest energy-saving equipment are being showcased at 240 booths during two international exhibitions which opened in Ho Chi Minh City on July 22.

The four-day event, which includes the 5th International Exhibition on Products and Technologies for Energy-Saving and Green Power (Enertec Expo 2015) and the 8th International Exhibition on Electrical Technology and Equipment (Vietnam ETE 2015), drew the participation of both domestic and foreign companies from China, Japan, Malaysia, the Republic of Korea, Switzerland and Thailand.

Nguyen Phuong Dong, Vice Director of the municipal Department of Industry and Trade, said that the Enertec Expo and Vietnam ETE exhibitions, held as part of the city’s investment, trade and tourism promotion programme, are expected to raise public awareness of energy conservation.

He added that the event serves as a prestigious destination for domestic and international enterprises to exchange advanced technology, foster trade as well as stimulate energy development in Vietnam.

A number of conferences on green energy and an award ceremony for a competition to seek ideas on energy conservation are scheduled on the sidelines of the event.

Vietjet Air wins gold for marketing project

Low-budget carrier Vietjet Air has won a Gold Awards 2015 from the Pacific Asia Travel Association (PATA) for its marketing project “With Vietjet, Saigon is closer”, it revealed on July 23.

This year the PATA Gold Awards received 269 entries from 83 travel and tourism organisations from all over the world, competing in four principal categories – Marketing, Environment, Heritage & Culture and Education & Training.

Vietjet Air is the first and only carrier in Vietnam to be honoured with the award.

It is a rising airline in Vietnam with its fleet of 26 Airbus A320 and A321 jets. The carrier operates 150 flights daily on more than 33 routes, including to Singapore, Thailand, the Republic of Korea, Taiwan, China and Myanmar.

The award ceremony of the annual PATA Gold Awards 2015 will take place on September 8 in Bangalore, India.

Founded in 1951, PATA is an internationally acclaimed non-profit association acting as a catalyst for the responsible development of travel and tourism to, from and within the Asia-Pacific region.

The Association provides aligned advocacy, insightful research and innovative events to its member organisations, comprising 87 governments, state and city tourism bodies and many international airlines, educational institutions and travel companies in Asia and beyond.

First Vietnam realty expo to boast legally ensured project

The Vietnam Real-Estate Association (VNREA) is working to ensure the legal status of projects showcased at the upcoming Vietnam realty exposition, as heard during a press conference held on July 23.

According to VNREA General Secretary Tran Ngoc Quang, it is the first time the sector is hosting its own event rather than being a part of construction, material, or furnishing expositions as before.

The show, highly anticipated by realty businessmen and investors, is scheduled to run from July 31 to August 2. It has registered 100 stalls from 50 enterprises and trading floors to date, including Viglacera Corporation, the Housing and Urban Development Company (HUD), the Hanoi Construction Corporation (HANCORP) and the Hanoi Housing Investment and Development Corporation (HANDICO).

Major promotion discounts and free consultation services are expected to be highlights of the exposition.

Local fuel prices fall slower than on global markets

The retail price of gasoline has plunged by 20% in the first half, just half the global price decline, although the average import price went down 39% in the period.

Statistics of the General Department of Customs showed as of June, Vietnam had imported nearly 1.4 million tons of gasoline worth over US$875 million. The average import price stood at US$629.3 a ton in the period.  

Local fuel wholesalers spent over US$1.37 billion importing more than 1.32 million tons of gasoline in the same period of 2014, leaving the average import price at US$1,039.9 per ton.

Therefore, the average price of imported gasoline fell by 39.5% year-on-year in the first six months of 2015. However, the petrol retail price on the domestic market did not decrease in tandem with the import price.  

At present, RON92 gasoline is priced at VND20,380 a liter. Its average price in January-June totaled VND17,940 a liter, 20% lower than in the same period of 2014.    

The retail price of gasoline hit a record high of VND25,640 a liter on July 7 last year before it steadily dropped thanks to import price falls.

The big gap between the domestic and global gasoline prices is attributable to import duties.

The import tax on gasoline was stable in the first half of 2014 and stood at 18% in June last year, accounting for 32% of the retail price. But the Ministry of Finance raised the import tariff in the first six months of this year to reverse a sharp drop in State budget collections from crude oil exports due to the world oil price plunge.    

The import tax briefly rose to 35% and made up 40% of the retail price before sliding to the current 20%.   

As for diesel oil, its average import price contracted 38.5% in January-June and the local retail price went down 37.2% in the period.   

Vietnam imported over 5.03 million tons of fuels worth some US$2.9 billion in the first half of the year with the average import price of US$576 a ton.  

The country imported 4.6 million tons of fuels valued at US$4.36 billion in the same period last year, with the average price of US$944 a ton.

The average import price of fuels dropped 39% year-on-year in January-June 2015.

Banks, property developers clinch guarantee deals

A number of property developers have got guarantees from commercial banks for their projects as required by the Law on Real Estate Business, which came into force on July 1.

Article 56 of the new law regulates that before selling or leasing products at half-done or future housing development projects, developers must obtain guarantees from commercial banks as assurances for financial obligations to their customers.

The Vung Tau City branch of Vietnam Prosperity Bank (PVBank) has inked an agreement to extend guarantees to Petroleum Real Estate Joint Stock Company’s apartment project Linh Tay Tower in HCMC.

The company resumed work on the project in Thu Duc District earlier this month to bank on the recovery of the local property market, Vietnam News Agency reports.

At the final sale phase of 117 land lots at its Jamona City in HCMC’s District 7, Saigon Thuong Tin Real Estate JSC (Sacomreal) signed guarantee and cooperation deals with banks including ACB and HDBank for its future housing projects.

Real estate firm TNR Holdings Vietnam has entered into a deal with Maritime Bank to guarantee its project in HCMC’s District 4 while Novaland Group has got assurances from VPBank.

Bui Huu Phuc, director of investment and development at Novaland, was quoted by Vietnam News Agency as saying that VPBank’s guarantees would enable the group to make sure its financial obligations to buyers and win customer confidence in its projects.

Phan Ngoc Hoa, deputy general director of VPBank, said if Novaland was unable to hand over apartments to its buyers as pledged while customers asked for compensation for the delay, the bank would refund the money which the buyer has paid to the group and other fees clarified in the contracts between the two parties.

Hoa noted many developers had put on hold their property projects and failed to hand over apartments to buyers in accordance with the contracts signed between the two sides since the local real estate market froze in 2008.

To attract more buyers, Dat Xanh Group has signed deals with VietinBank and BIDV to secure guarantees for its real estate projects that would be launched in the second half of this year, including the high-end apartment project Opal.

Dat Xanh hailed the law as it safeguards the interests of buyers and ensures the construction tempo of property projects. The law helps the market develop sustainably as it kicks ailing property firms out of the market.

Hung Thinh Corporation has won guarantees from five lenders including VietinBank, BIDV, Vietbank and Sacombank.

Nguyen Dinh Trung, chairman and chief executive officer of Hung Thinh Corporation, said banks would carefully check the financial capability of a property developer and the liquidity of its projects before agreeing to provide guarantees for them.

In addition to their guarantee agreements with banks, real estate firms plan more housing products targeting expatriates as the revised Housing Law with effect from early July eases foreign home ownership in Vietnam.

Pay TV users hit 9.9 million

The number of Pay TV subscribers has reached 9.9 million nationwide by the end of last month, according to the Ministry of Information and Communications's report.

This is said to be impressive growth as the number was just six million by the end of 2014.

Cable television includes 5.99 million analog subscribers and 778,000 DVB-C, Docsis subscribers.

Digital terrestrial television (DTT) has 300,000 subscribers.

The total revenue in the television sector hit nearly VND9.2 trillion (US$423.2 million). Total human resources in the Pay TV sector are 9,449.

Pay TV enterprises had to compete fiercely with various promotions to attract subscribers.

Reports from the ministry showed that there are 181 broadcast and television channels nationwide. Meanwhile, there are 40 licensed foreign channels, 33 channels less since the Government's Decision released in 2011 on the regulation of pay TV.

Bao Viet Corporation wins 3 LACP Awards

The Bao Viet Life Corporation, a subsidiary of Bao Viet Holdings, has for the fifth year in a row been awarded a prestigious League of American Communications Professionals (LACP) Vision Award.

LACP supports, recognizes and advances excellence in the practice of professional communications.

This year, LACP recognized the Bao Viet Life Corporation with the added distinction of receiving three Platinum Awards from among a field of over 6,000 entrants from two dozen countries.

League of American Communications Professionals LLC (LACP) was established in 2001 in order to create a forum within the public relations industry that facilitates discussion of best-in-class practices within the profession while also recognizing those who demonstrate exemplary communications capabilities.

RoK to invest in hi-tech agriculture in Can Tho

The Republic of Korea (RoK) will provide a 500,000 USD aid package for the Mekong Delta city of Can Tho to boost its hi-tech agriculture.

The capital will be used to build infrastructure and purchase modern machinery and equipment.

The announcement was made during a meeting between local authorities and a delegation of Korean economic consultants led by Hak Min-kim.

Three companies from the RoK are set to invest in Can Tho, including YouCel major in bio-cellulose manufacturing, Nexgen Biogen specialised in canola extracting for cooking oil and cosmetics, and Nano Bio One operating in bio-nano technologies.

At the meeting, Chairman of the municipal People’s Committee Le Hung Dung expressed his hope that the projects would generate more jobs and tap on the availability of farming materials.

Processing, manufacturing industry to create more jobs

The goods processing and manufacturing industry is expected to gain ground and expand its workforce through the rest of 2015, according to a labour market update released on July 20 by the Ministry of Labour, Invalids and Social Affairs and the General Statistics Office.

Maintaining momentum from the first quarter, 86.4 percent of the industry’s businesses said they intend to hire additional staff.

The highest demand for manpower is estimated to be concentrated in sectors producing apparel, beverages, electronic and optical equipments, and machinery maintenance and assembly.

New employment opportunities will come mostly from foreign-funded enterprises.

The impact of the amended employment and education laws will accelerate the regional integration of Vietnam’s labour market. Meanwhile, as the ASEAN Economic Community is set to be established by the end of this year, bloc citizens trained in accounting, engineering, architecture, dentistry, transportation, nursing and tourism, will be able to travel and work across the region. It is both an opportunity and a competitive challenge for Vietnamese employees.

Quang Ninh accelerates aquatic development alliance

Cua Van fishing village in the northern province of Quang Ninh has been chosen to pilot the Ha Long Bay – Cat Ba alliance – an initiative to preserve and develop aquatic resources.

The project, run from January 2015 - June 2017, is expected to be approved this August. It specifies the allocation of areas for aquaculture-tourism development, mechanism of coordination between enterprises and fishing households, among others, said permanent Deputy Chairman of the provincial People’s Committee Dang Huy Hau.

More than 18 fishing households in Cua Van will join the project, he added.

Funded by the US Agency for International Development (USAID), the initiative costs over 691,000 USD, roughly 623,000 USD of which is non-refundable aid.

It aims to protect the landscapes, environment and natural resources for the sustainable development of Ha Long Bay.

It also helps connect stakeholders to sustainably tap and manage Ha Long Bay.

Phu Tho strives to become attractive investment destination

The northern midland province of Phu Tho, a powerhouse of heavy industry, is set to continue improving its competitiveness and business climate.

Speaking at a local seminar on July 20, Head of the Vietnam Chamber of Commerce and Industry (VCCI)’s Legal Department Dau Anh Tuan suggested developing industries in specific zones.

According to Tuan, garment, leather and footwear – which need a substantial workforce – is likely to thrive once Vietnam joins major trade agreements.

Sangho-Yoon, Director of the Hanoi-based investment advisory firm SMBL, optimistically stated that there would be a positive response from foreign-invested sectors thanks to improved administrative formalities, utility and transport infrastructure.

When the locality delivers on their commitment to streamlining bureaucracy, business confidence will increase, he said.

Phu Tho is home to seven industrial parks and 30 industrial clusters stretching 4,000 hectares and attracting 150 investors in and outside the country, generating 15 trillion VND (714 million USD) worth of annual industrial production value and more than 35,000 jobs.

The province has rallied resources to build synchronous infrastructure at industrial parks and clusters as well as offered tax and land lease incentives.

Workshop discusses NA role in implementing FTAs

The role of the National Assembly in ratifying and implementing free trade agreements (FTAs) was the focus of a workshop held by the NA Committee for External Relations and the US Agency for International Development (USAID) in central Thua Thien-Hue province on July 20.

Participants – including NA deputies, economists and representatives of both domestic and foreign businesses – discussed the specific impacts of FTAs on Vietnam’s economy as well as challenges facing the country during the negotiation and signing process.

They also shared opinions on legal issues to be revised or supplemented to increase the country’s trade competitiveness.

In recent years, along with domestic reforms, Vietnam has actively participated in negotiations for bilateral and multilateral FTAs with numerous important partners.

To date, Vietnam has signed 10 FTAs; those with the Republic of Korea and the Eurasian Economic Union were reached in 2015.

Can Tho urged to shift focus to trade, services

The Mekong Delta city of Can Tho was urged to shift its economic focus towards trade, services-industry, construction and hi-tech agriculture by 2030 during a local workshop held on July 20.

To that end, priority should be given to support, processing and mechanical engineering industries, said Associate Professor Ha Thanh Toan from Can Tho University.

The agriculture sector should gear itself towards effective production models that generate high added value.

It is essential to diversify the retail market, financial services, tourism, transport, logistics, education-training, science-technology and healthcare.

Human resources training is also pivotal, he said.

Nguyen Trong Cuong, Director of the Can Tho Institute of Socio-economic Development Studies, suggested using the State budget for key facilities and rallying resources for technological innovation, particularly those in biology, farm produce preservation, telecommunications and automation.

He called for research institutes and universities at home and abroad to link together to develop a sci-tech market.

From its humble beginning as a farming locality, Can Tho is relying less on agriculture; it currently makes up 7 percent of its economy, a steep slump from 67 percent in 1986.

Social policy bank raises 200 bln VND from government bonds

The Vietnam Bank for Social Policy (VBSP) raised 200 billion VND (9.26 million USD) worth of three-year government bond through a bid hosted by the Hanoi Stock Exchange on July 20.

The three-year bonds will yield an annual interest of 6 percent, up 0.02 percent from the previous auction held on July 13.

At the auction, the VBSP planned to raise 1 trillion VND (46.3 million USD) from three, five and fifteen-year bonds.

The VBSP has mobilised 7.16 trillion VND (331 million USD) so far this year through the sales of Government bonds.

NGO projects boost economy in Thai Nguyen province

Projects run by non-governmental organisations (NGOs) in the northern province of Thai Nguyen are making active contributions to local socio-economic development, especially poverty reduction efforts.

So far, the province has granted 72 operatational licences to NGOs, of which 29 are still valid, as heard at a working session between local authorities and a delegation of the Committee for Foreign NGO Affairs on July 20.

Thai Nguyen is carrying out the national programme on promoting aid from NGOs between 2013 and 2017.

In the first two years of implementing the programme, the province enabled NGOs to tour and build plans to activate a number of projects on clean water supplies, environmental sanitation and solid waste management.

The EAST Vietnam, an NGO for international solidarity, is implementing a waste treatment project in the Ky Phu and Van Tho communes of Dai Tu district while the US-based Oxfam is running a project to empower small-scale Vietnamese farmers.

Local authorities called for more assistance from the Government’s ministries, departments and sectors to support NGO activities, particularly in education, health, rural development and climate change adaptation.

On the occasion, the delegation led by Deputy Head of the People’s Aid Coordinating Committee Nguyen Trung Dung scrutinised the implementation of NGO projects in the province.

Opportunities to bolster seafood exports to RoK

The Republic of Korea (RoK) has been considered one of the most potential export markets for Vietnam’s aquatic products, especially after the two countries sign a free trade agreement in May.

Vietnam’s aquatic product exports to the East Asian country have maintained stable growth over the past five years. In 2013, the RoK was the fifth biggest importer of Vietnamese aquatic products, just behind the US, Japan, the European Union (EU) and China, accounting for 7.6 percent of the market share. The nation climbed to fourth position one year later, with 8.6 percent of the market share.

The RoK has been also the biggest importer of Vietnamese seafood such as cuttlefish, octopus and fried fish. In the first five months of 2015, Vietnam’s cuttlefish and octopus exports to the Rok reached 63.7 million USD, up 1.1 percent against the same period last year.

Regarding Vietnam’s opportunities for aquatic product exports to the RoK, the Vietnam Association of Seafood Exporters and Producers (VASEP) said, from early 2016, Vietnamese shrimp exports to the country will enjoy numerous preferential incentives, including tariff eliminations, down from the current 20 percent, with a quota of 10,000 tonnes.

Shrimp exports to the country brought home 317.8 million USD in 2014, a 41.3 percent increase from 2013.

To fully exploit this market, however, VASEP recommends Vietnamese exporters to ensure food hygiene and the quality of aquatic products, especially the requirements of origin.

Nearly 480 trillion VND for developing power grid

The Electricity of Vietnam (EVN) has spent nearly 480 trillion VND (22.3 billion USD) to develop power plants and grids from 2011-2015 in compliance with the national power development plan.

In the past five years, some 34 power generators with a total capacity of 9,852 megawatts were put into operation and work started on the construction of ten power projects nationwide. Particularly, the Son La Hydro-Power Plant designed with a 2,400-megawatt capacity was completed three years earlier than scheduled, bringing huge economic benefits to the country.

Other projects such as the Vinh Tan 2 thermal power plant and Duyen Hai 1 thermal power plant have made great contributions to ensuring power supply to the southern region.

As many as 865 transformer stations and transmission lines were connected to the national grid during the period. The EVN also completed the 500-kilovolt Pleiku-My Phuoc-Cau Bong high voltage line and the 220-kilovolt Dak Nong- Phuoc Long-Binh Long line to increase the transmitted power between the north and the south.

However, the EVN said that power overloads are occurring in some localities due to a number of delayed projects spurred by insufficient capital, slow land clearance, natural calamities and design changes.

In a bid to meet investment demands, the group targets to mobilise over 600 trillion VND (27.9 billion USD) from 2016-2020 through official development assistance loans and issuing domestic and international bonds.

The group will scrutinise provincial and municipal power development plans nationwide to adjust investments in line with practical needs; ask relevant ministries and organisations to facilitate administrative procedures, land clearance and power planning; and build advanced economic technical standards for the grid to improve efficiency and reduce losses during transmission.

In the next five years, the group will complete 11 power plants with a combined capacity of 5,819 megawatts while ensuring progress of key power projects and making preparations for the country’s first nuclear power plant in Ninh Thuan province.

In the land down under, Vietnam trade balance flying high

The nation’s trade surplus with Australia continued to expand in the first quarter of 2014 on a year-on-year basis, as exports posted solid growth of 1.3% tallying in at US$742.8 million, according to the Vietnam Trade Office.

These positive statistics come on the back of record setting growth in the market for 2014 with the nation’s goods and services trade with Australia nearly doubling over the last five years striking US$6.05 billion in 2014.

For 2014 the trade office reports exports to the market down under were estimated at US$3.99 billion and imports at US$2.06 billion, resulting in a trade surplus of US$1.93 billion for the year.

This productive relationship is the result of deep links, which have proliferated since diplomatic relations between the two nations were established in 1973, buttressed further by a free trade pact entered into in 2010.

The trade agreement has been a tremendous boon for Vietnam’s exports as it establishes a free trade bloc encompassing all of ASEAN, Australia and New Zealand, according to the trade office.

It provides for phased in reductions on almost 90% of tariff lines by 2025, which make both nations exports more price competitive in each other’s markets along with commitments to develop regional rules of origin and other investment protections.

Currently Australia is ranked the eighth largest export market for Vietnam and Vietnam has now surpassed Thailand to become Australia’s largest trading market in the ASEAN region.

In 2014 crude oil continued to be Vietnam’s key export product to Australia, accounting for 46% of the total export revenue, with other major export items including mobile phones and seafood.

The Australian market is a promising market providing Vietnam domestic businesses, with numerous opportunities primarily because of its significant dependence on imports for its industrial production and domestic consumption.

Each year, Australia imports from all foreign nations an estimated US$80 billion in goods and services but Vietnam’s share of the market is only roughly US$4 billion, which indicates there is an expansive potential for future growth.

The economic growth and wellbeing of Vietnam in the Australia market depend on how successful we are at marketing and selling— and we plan to expand our efforts in these areas in the future, a representative of the trade office stressed.

Currently the trade office has coordinated with the Vietnam Business Association in Australia to organise ‘A Vietnam Lychee Day in Australia’ with the aim of increasing the visibility of Vietnam lychee.

We have also printed recipes for lychees dishes and produced a short film on Vietnam lychees that is being broadcast throughout the country as part of a pilot program to boost sales.

Having met with much success to date plans are in development to extend the program to other fruits and vegetables, which could potentially result in tens of millions of dollars of revenues for Vietnam’s agriculture industry.

HCM City to launch Int’l Trade Centre this week

The Centre for the Promotion of Trade and Investment (ITPC) of Ho Chi Minh City has unveiled that on July 21 its crown jewel – International Exhibition and Business Centre – will open for business.

The new Saigon Export Centre is located at 92-96 Nguyen Hue Street in District 1 and has been tasked by the city’s provincial committee to market the city brand, boost export capacity and expand foreign markets.

The centre aims to connect buyers and sellers of products and services generate sales by providing a highly-trained team of professionals, customized services and business development tools to help them open difficult doors to foreign trade.

Among other things, the centre will provide businesses with free information about export markets, networking opportunities, assistance introducing their business capabilities abroad and locating well suited business partners.

Vietnam’s growth strengthens despite mixed progress on structural reforms

Vietnam’s economic growth has continued to strengthen with gross domestic product (GDP) is estimated to expand 6.28% during the first half of 2015, according to the World Bank’s latest Taking Stock report.

The semi-annual review of the Vietnamese economy said the growth rate was the nation’s fastest in the first half of the year for the past five years.

Against a backdrop of low inflation, the State Bank of Vietnam has gradually loosened monetary policy to spur growth while periodically adjusting the exchange rate to maintain external competitiveness, the report said.

At the same time, Vietnam’s fiscal accounts emerge as a source of concern. The nation’s debt has risen rapidly in recent years, and debt servicing costs could pose an increasing burden on the budget.

Meanwhile, a drop in exports and increased imports have resulted in current account deficit in the first quarter of 2015.

Progress on structural reforms has been less strong, especially regarding state owned enterprises (SOEs) and the banking sector.

Progress on SOE reform continues, but at gradual pace, with only 29 SOEs equitized in the first quarter of 2015 out of the annual target of 289. Implementing the legal and regulatory framework for SOE management and corporate governance issued last year and increasing percentage of ownership that can be acquired by the private sector, should remain key priorities.

“Banking sector reforms continued during the first half of 2015, with a number of acquisitions of smaller banks by major state-owned commercial banks,” said Sandeep Mahajan, Lead Economist for the World Bank in Vietnam. “However, the lack of an appropriate legal framework and the VAMC’s own limited capital base and operational capacity remain constraining factors for resolving bad debts.”

The Taking Stock report features a special section on the labor market in Vietnam, which details a dramatic shift in the employment landscape over the past 25 years.

While jobs in Vietnam once were characterized entirely by family farming, collectives and SOEs, employment now has shifted toward manufacturing and services, household enterprises outside agriculture, and private domestic and foreign-owned firms. The report notes that labor regulations and institutions can be an important factor in private-sector wage growth.

Taking Stock provides suggestions for further transforming Vietnam’s labor market, including more proactive measures to strengthen the industrial relations system, balance labor market flexibility with sustain productivity growth, and manage social risks in a more market-oriented economy.

In particular, Taking Stock notes that Vietnam lacks well-functioning institutions for collective bargaining and dispute resolution. The report offers suggestions on ways to addresses these weaknesses and promote a better functioning labor market.

Nghe An probes slow projects

The central province of Nghe An plans to inspect 74 projects that are progressing too slowly, in order to improve the quality and efficiency of licensed projects in the province, according to the provincial Department of Planning and Investment.

By this year-end, the province will pay more attention to evaluating the financial capacity of investors before granting them investment licences, in a move to avoid slow-moving projects. Those who have received licences will be required to make deposits to better ensure the implementation of their projects, the department said.

The local authorities will also focus on reviewing the progress of licensed projects so that any difficulties that investors encounter in developing projects can solved in a time manner. Also, investment licences might even be revoked if investors fail to implement projects as planned.

In 2012-14, the authorities examined 111 sluggish projects and decided to withdraw the licences of 60 of these.

Since the beginning of this year, Nghe An has licensed 93 projects with a combined capital of more than VND27.8 trillion (US$1.28 billion). While $1.25 billion came from 73 new projects, $29.5 million came from 20 existing projects that had raised their capital levels, vietnamplus.vn reported, citing departmental statistics.

The sizeable projects under construction include the Hoa Son Cassava Powder Factory, which will have a production capacity of 150 tonnes per day, the Song Lam Cement Factory with a capital of VND10.5 trillion ($486.1 million), and the Hoa Sen Steel Sheet Factory.

Earlier, the central province said it had set a target of attracting around VND100 trillion ($4.7 billion) in investment, including VND50 trillion from foreign direct investment (FDI), in the 2015-20 period.

To achieve this aim, the province will implement measures to lure investment, as Nghe An considers it a key task in spurring local socio-economic development.

Besides facilitating the operations of investors by zoning land for them, offering them incentives and assisting them in recruiting workers and sourcing building material, the province will continue improving its investment environment with the aim of becoming one of the top 30 provinces and cities in the country in the provincial competitiveness index.

FLC acquires 265 Cau Giay project

FLC Group has acquired the 265 Cau Giay project, which is known as the golden land area in the capital. This has been the group's third merger and acquisition (M&A) in the real estate sector, following FLC Garden and Lavender Tower.

Dam Ngoc Bich, FLC's deputy general director, said that the company has been rushing to prepare for the VND2.2 trillion (US$101.8 million) project's construction and offer for sale.

The 1ha project includes construction of a twin tower of 50 floors and another 38 floor tower.

Last year, FLC's total value for M&A in the sector reached VND6 trillion ($277.7 million).

EVN, General Electric sign deal for training, technology

Electricity of Viet Nam and US conglomerate General Electric have tied up for joint development of human resources and fostering the use of technology.

They signed a memorandum of understanding in Washington D.C on July 8 on the occasion Party Secretary General Nguyen Phu Trong's visit to the US, which is expected to help the country speed up development of its energy infrastructure and cope with the rising demand for electricity.

In terms of capability development, GE will assist EVN in developing human resources through activities like leadership training for senior leaders, sharing best practices in corporate governance and practical and technical training programmes.

To facilitate development of energy infrastructure, GE will provide technologies and support for power generation equipment like high-efficiency gas turbines, large-scale steam turbines, and wind turbines.

Furthermore, both sides will work to expand the use of renewable energy in Viet Nam.

Pham Hong Son, CEO of GE Viet Nam and Cambodia, said: "Having been in Viet Nam over the past two decades, GE is pleased to have this opportunity to be a strategic partner to EVN.

"We can use our global experience in power generation in over 170 countries, share expertise and bring training programmes to help enhance EVN's ability to meet the increasing demands of power growth in Viet Nam."

The agreement became more significant when it was formalised in the context of the 20th anniversary of diplomatic relations between the US and Viet Nam, he said, emphasising GE's commitment to Viet Nam's long-term development through its ‘company-to-country' strategy.

EVN chairman Duong Quang Thanh said: "With a common desire to develop Viet Nam's energy infrastructure, EVN and GE will keep working together to serve the electricity needs of the Vietnamese people and nation.

"In ensuring sustainable development of the power industry, we highly appreciate GE as an excellent partner to help us achieve the goals."

GE has more than 700 employees and $110 million invested in Viet Nam.

It has been working with private and State-owned enterprises on major power projects, including the upgrade of the north-south power transmission line and the development of the Bac Lieu Wind Farm in the Mekong Delta and the Tay Nguyen Wind Farm in the Central Highlands.

Vietnam’s Bkav says to wipe the floor with Google with new services

Nguyen Tu Quang apparently could never resist an opportunity to put a famous global brand into comparison with his own product, be it is such big names as Apple, Samsung, or Google.

The 40-year-old CEO of Bkav, a Hanoi-based company mostly known for the antivirus software of the same name, and recently, the infamous Bphone smartphone, said his firm is poised to release several services that can wipe the floor with their Google-powered counterparts.

“In the third quarter of this year, Bkav will unveil some new services that are capable of replacing and competing with those of Google,” newswire VnEconomy reported on Sunday, citing a company’s press release.

However, Bkav, which operates in the fields of Internet security, smart home, and phone making, did not elaborate what those services are.

The press release was issued after Quang’s company was listed among “Top 20 most famous brands in Vietnam” by the Vietnam Intellectual Property Association, the Vietnam Union of Science and Technology Associations, and the Vietnam Chamber of Commerce and Industry.

The CEO said in the document that Bkav has finalized its transformation to a joint stock company, and has established its Silicon Valley branch, called Bkav USA, in Mountain View, California.

Besides the expansion to the U.S., Bkav is also boosting its bid to distribute its products to the global market, according to the press release.

This is not the first time CEO Quang boasted the ability to rival strong global competitors of his products.

Quang has repeatedly said the company’s Bphone is the world’s best smartphone, and can even challenge Apple or Samsung on the global stage.

The Bphone, which was launched on May 28 and officially went on sale in early June, got off to a rough start as it was hamstrung by a number of scandals and the device quality is apparently not as good as its maker tries to convince consumers to believe.

Delivery of the handsets, which can only be purchased online via Bkav’s shopping platform, has been delayed for three times, and most of those who finally received the gadgets have posted their negative product reviews online.

The company also had to recall the first batch of the products for software upgrades shortly after deliveries were made.

Bkav also said late last year that the company is “dozens of years ahead” of Microsoft and Google in the smart home market.

Ha Noi has plan to raise H2 exports

The capital city has developed a plan to promote exports after it saw a fall in exports in the first half of 2015, according to an official.

Chu Xuan Kien, deputy director of the Ha Noi Industry and Trade Department, said in the first half of this year Ha Noi had a year-on-year decrease of 1.2 per cent in its total export values, falling to US$5.3 billion.

Also, key export products that fell in their export values during the first six months included farming, textiles, garments, electronics and handicrafts.

Kien said declining exports were due to adjustments in the exchange rate between the Vietnamese dong and the US dollar, increases in input prices, and high land rents leading to higher production costs and lower competitive abilities in selling prices of export products.

Meanwhile, difficulties in the world economy have caused many large export markets for Ha Noi to cut imports, such as the EU, he said.

By the end of this year, the city hopes to see a recovery in exports, as Ha Noi authorities have developed a plan to resolve difficulties of capital and markets for its enterprises.

Under Ha Nois strategy in export and import of goods in the period 2011-20 and towards 2030, the city would increase training of its workforce, promote development of support industries and implement supports for enterprises in development of brand names, organisation of trade promotion programmes and introduction of export products.

The city would also improve the business environment and administrative procedures to create favourable conditions for enterprises in developing new business, the Vietnam Economic News reported.

By the end of this year, the city would continue supports in banking interest rates and trade promotion programmes. It would also encourage enterprises to develop initiatives in the organisation of production and finding partners, improve the quality of export products and sell products at competitive prices.

The associations should also combine enterprises to increase competitive and develop brand names for sustainable development in the future.

Viet Capital Bank exceeds first-half plans

Viet Capital Bank has released its business results for the first half, with most targets being completed or exceeded.

Total assets stood at nearly VND28 trillion ($920 million), representing 87 per cent of the plan. Total deposits reached VND24.1 trillion ($1.1 billion), up 22 per cent over the same period of last year and accounting for 93 per cent of the plan, while outstanding loans reached 79 per cent of the plan and its NPL ratio was kept at below the level prescribed by the State Bank of Vietnam. Viet Capital Bank has gradually asserted a sustainable position in the market, winning the trust of shareholders, partners and customers.

For the second half the bank will continue its steadfast efforts at the direction of its board. It will not set growth targets but will continue to focus on fulfilling the criteria already set out, controlling risks and bad debts and improving is customer services.

Established in 1992, Viet Capital Bank has gone through several stages of development, with 2012 -2014 being a key stage marked by many vigorous moves. With a long-term vision and the right business strategy, it has gradually earned a firm position in the market by investing in information technology systems, constantly innovating its business activities, and providing a range of products and services to meet the needs of each customer segment.

Labour demand in processing industry to continue to increase

Labor demand is expected to rise sharply in the next six months of 2015 in Vietnam’s processing and manufacturing industries, including garments, beverages, electric products, and mechanics.

The prediction was made in the third Vietnam Labor Market Update, published in Hanoi on July 20 by the Ministry of Labour, Invalids and Social Affairs (MoLISA) and the General Statistics Office of Vietnam.

Vietnam’s economic recovery has positive impacts on labor market.

According to the Vietnam Labor Market Update 2015, the second quarter witnessed an impressive recovery of the construction, processing and manufacturing industries.

In the next six months of 2015, the industries will continue to stablise and grow stronger than in the first six months of the year. More than 86.4% of enterprises in these industries have affirmed that they will increase the labour scale in the next six months of 2015. The highest demand for labour is expected in foreign investment projects.

Additionally, the Employment Law and Occupational Education Law, will provide a legal framework for the labour market in integrating into other countries in the region and the world’s labour market.

Conducted by MOLISA and the GSO with support from the International Labour Organisation, the bulletin aimed to analyse new trends in the labour market and show a panoramic picture of this market in order to improve labour policy-making.

Saigon Expo – venue of domestic exporters

Nearly 50 exporters from Ho Chi Minh City and other localities showcased their products at the new Saigon Export Centre (Saigon Expo) which was inaugurated on July 21.

On display were foodstuff, cosmetics, handicrafts, garment, beverages, confectionery, plastics and household appliances.

Nguyen Thi Hong, Vice Chairwoman of the municipal People’s Committee, said the Saigon Expo enables small- and medium-sized enterprises in particular to display products and facilitate export.

Pho Nam Phuong, Director of the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC), said the ITPC will provide exhibitors at the centre with market information and send their profiles to consuls general in Vietnam and Vietnamese commercial offices abroad.

The centre, located at 92-96 Nguyen Hue Street, District 1, also has space designed for business networking. It expects to become a bridge for businesses to meet potential buyers and join exhibitions and fairs at home and abroad.

Housing credit package disbursement pushed forwards

Over 22,200 households have signed borrowing contracts worth 10.1 trillion VND (466 million USD) with commercial banks under the Government’s 30 trillion VND (1.4 billion USD) housing credit stimulus scheme, said Head of the Department of Housing and Real Estate Market Management Nguyen Manh Ha.

Some 43 social housing projects also applied to borrow nearly 6 trillion VND (279 million USD). Of the total, 2.4 trillion VND (111.6 million USD) has been disbursed for 40 projects.

Ha said that the Bank for Investment and Development of Vietnam (BIDV) has become the leading bank, loaning to 7,581 households from the credit package with a total value of nearly 7.5 trillion VND (348.8 million USD).

BIDV also committed to provide loans worth 3.7 trillion VND (172 million USD) for 22 projects in line with current regulations, which include low-income housing projects in northern Hai Duong province, central Hue city and central Da Nang city.

In addition, the Vietnam Joint Stock Commercial Bank of Industry and Trade (VietinBank), the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and the Vietnam Bank for Agriculture and Rural Development (Agribank) also made efforts to accelerate credit package implementation with committed loans of 4.7 trillion VND (218.6 million USD), 2.6 trillion VND (120.9 million USD) and 1 trillion VND (46.5 million USD), respectively.

Some small commercial banks such as Orient Commercial Joint Stock Bank (OCB), Tienphong Bank (TPBank) and Vietnam Export Import Commercial Joint Stock Bank (Eximbank) are also actively joining in lending activities under the package.

Chairman of the Vietnam Real Estate Association Nguyen Tran Nam said that the 30 trillion VND (1.4 billion USD) credit package aims to help labourers access housing, thereby stimulating the property market.

However, the credit scheme’s progress has not met expectations due to limitations on social housing project supply, project investor capacity and legal procedures on real estate contracts, among others.

According to experts, diversifying the housing supply as well as facilitating conditions for customers to access loans from banks will be useful to accelerate the housing stimulus package.

Launched in June 2013, the credit package offers loans with a maximum interest rate of 5 percent to individual borrowers for no longer than 15 years.

Workshop boosts exports to Japan

Boosting exports to Japan was the discussion focus at a seminar held on July 21 in Hanoi.

The event, organised by the Small- and Medium-Sized Enterprise (SMEs) Association, aims to assist local SMEs in fully tapping the opportunities offered by the Vietnam-Japan economic partnership agreement from 2015-2019.

Participants pointed out that strong tariff cuts under the agreement has opened up opportunities for domestic products to enter the Japanese market, especially key agro-aquatic and garment-textile products.

Tran Dinh Thien, Director of the Vietnam Economics Institute, said domestic enterprises should focus on product’s added value rather than productivity as well as on developing products unique to Vietnam.

Echoing Thien’s opinion on improving product quality, Nguyen Son from the cross-sector Steering Committee for international economic integration stressed the need for domestic products to meet Japanese standards to enter the particular market.

Do Van Dung, Chairman of the Vietnam-Japan enterprises association also underlined the improvement in production methods and process to meet Japanese requirements in product quality and safety.

Investors encouraged waiting for positive market turns

Last week’s stock market volatility has kept the VN-Index around 630 points all week, edging up 0.28 percent on the week’s last trading day, while the HNX-Index concluded its last session in red, down 0.59 percent.

A slump of hot bluechips in the insurance and banking sectors, which had previously enjoyed strong gains, together with the separation between stocks in the same industry are believed to be holding back the market.

Liquidity on both national stock exchanges fell 17 percent from the previous week’s level to only 135 million shares changing hands.

The decrease is owed to reduced cash flows pumped into the market and the increasing number of investors offloading their shares, said the Viet Dragon Securities Corporation (VDSC), adding that the stock market would remain volatile this week.

The firm recommended short-term investors unload their shares when the market turns positive while long-term investors should maintain roughly half cash and half stocks to reduce risks and be ready for following waves.

The VPBank Securities (VPBS) expressed concern that if stock demand does not improve notably to generate big enough profits, short-term investors will lose patience and bail out, increasing pressure for the market.

The investors would do better to keep the shares as the market is experiencing an overall upward trend, Maybank Kim Eng Securities (MBKE) suggested.

The VN-Index may need a few more sessions to hit 640 points, it added.-

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