Northwest hopes to turn tourism into spearhead sector by 2030

The Steering Committee for the Northwest held a meeting in Hanoi on April 3 to look into ways to transform tourism into a spearhead industry in the region by 2030.

Standing Vice Chairman of the committee Hau A Lenh said the meeting was a chance for local officials to seek advice from tourism experts and pinpoint obstacles in tourism development so as to mobilise resources, especially from private sector, to foster the growth of tourism, thereby helping to eliminate poverty, tap into local advantages, and turn tourism into a spearhead economic sector in the northwest by 2030.

Participants, including officials of ministries, central agencies and north-western provinces, said there remain a number of shortcomings in the northwest’s tourism sector, despite the region’s great potential.

They admitted many local officials are not aware of the role of tourism in socio-economic development. Meanwhile, underdeveloped infrastructure and tourism services have hampered tourists’ access to local destinations. Another lingering problem is the shortage of quality manpower in the industry.

Experts in the tourism industry also expressed concern about worsening pollution at many places of interest.

Participants underlined the role of the Steering Committee of the Northwest in connecting regional provinces’ tourism activities to ensure the consistency in the tourism market and product quality. It should coordinate the making of tourism development strategies so as to avoid overlapping products.

Apart from the continued improvement of transport infrastructure, drastic moves must be made to protect the environment and ensure security and safety for tourists. It is also necessary to provide high-end and modern tourism products, especially those relating to the region’s strengths such as natural landscapes.

Participants asked for stronger tourism promotion and support for environmentally friendly types of tourism such as eco-tourism, rural tourism and adventure tourism.

The northwestern region, consisting of 12 provinces and 21 western districts of central Thanh Hoa and Nghe An provinces, is the main focus of the National Tourism Year 2017.

Export of aquatic products earns 1.5 billion USD in first quarter

Vietnam earned 537 million USD from the export of aquatic products in March, bringing the total figure of the year’s first three months to 1.5 billion USD, a year-on-year increase of 3.6 percent, according to the Ministry of Agriculture and Rural Development (MARD).

Leading markets for Vietnamese seafood are Japan, the US, China and the Republic of Korea (RoK), while the highest surge was seen in the Brazilian market with 67.6 percent, followed by the Netherlands with 55.6 percent, Japan with 28.5 percent and Canada 24.3 percent.

Imports of aquatic product were valued at 306 million USD in the period, up 30 percent compared to the same period last year. 

Prices of Tra fish in the first quarter increased due to a decline in supply while businesses stepped up buying materials to fill their export orders in early 2017.

Meanwhile, shrimp supply was tightened while the demand of processor was on the rise, leading to increases in prices. 

Two ministries sign regulation to support life insurance enterprises

The Ministry of Finance and Ministry of Industry and Trade signed on Friday a co-ordination regulation concerning life insurance product approval, contract registration and transaction conditions.

With this regulation, life insurance companies will only need to submit the product approval documents and contract registration with the Ministry of Finance, while not having to ask Ministry of Industry and Trade for approval as before.

“This helps businesses to reduce risks and about 20 days of waiting," said Trần Quốc Khánh, deputy minister of industry and trade. This also marks the first time the two ministries have co-ordinated regulations to reduce administrative procedures and support enterprises.

Tiền Giang earns record export revenue in Q1

The Mekong Delta province of Tiền Giang earned a record export revenue in the first quarter of 2017, the provincial Department of Industry and Trade has said.

During the first three months of the year, the provincial export value reached US$627 million, which is around 27 per cent of its annual target and more than 50 per cent increase year-on-year, Ngô Văn Tuấn, director of the department, said. Around 58.5 per cent of this contribution came from foreign-invested enterprises.

Tiền Giang’s major export products, including handbags, apparel, bronze pipes, processed seafood and footwear, have recorded a strong growth.

The export value of handbags and garments hit around $157 million and $128.5 million, a year-on-year surge of 52.3 per cent and 52.8 per cent, respectively. The export of bronze pipes stood at 14,000 tonnes, earning $93.3 million, up 38 per cent in volume and 60.8 per cent in value.

Processed seafood soared 57.3 per cent in volume and 56.3 per cent in value to 44,400 tonnes and $88.4 million.

America remained Tiền Giang’s largest export market, accounting for 40 per cent of its exports, followed by Asia and Europe, which indicates that the province’s products met the strict quality and export standards set by American markets.

Since the start of this year, Tiền Giang has been pushing for an action plan to implement the 2011-20 export-import strategy with a vision to 2030. Its focus has been on facilitating business development, creating favourable conditions for enterprises in developing export products and markets, and attracting investments.

Tuấn said the province has closely watched enterprises’ production and business, especially of exporters of key products and large enterprises, and helped resolve many of their problems. The province has been focusing on development of new export markets to avoid dependence on one or two traditional export markets, he added.

The department has also shared detailed information about bilateral and multilateral free trade agreements between Việt Nam and its foreign partners with local enterprises to help them pursue new opportunities.

In 2017, the province expects to earn $2.35 billion from exports, up 11.4 per cent year-on-year.

VPBank, Techcombank expect to increase capital     

VPBank and Techcombank will submit a proposal to increase capital at their annual shareholder meetings this month.

The meetings of VPBank and Techcombank are due on April 10 and April 15, respectively.

Techcombank expects to increase charter capital from nearly VND8.88 trillion (US$391 million) to VND13.88 trillion.

The bank’s stake will be offered for sale to existing shareholders. The sale is expected in the second or third quarter of this year. Share price will be decided by the bank’s board of directors, but it must be higher than the face value.

Techcombank this year plans to increase total assets to nearly VND280 trillion and earn pre-tax profit of more than VND5 trillion, up 26 per cent against 2016.

VPBank, meanwhile, hasn’t released its detailed capital raising plan yet. The State Bank of Viet Nam recently approved VPBank’s proposal to increase charter capital from VND9.18 trillion to VND10.77 trillion through the issue of bonus shares and by using profit left from the previous years.

Giant projects heat Phu Quoc Island’s property market     

Phu Quoc Island is emerging as a phenomenon in Viet Nam's property market with investment worth billions of dollars from large developers, helping draw a slew of investors and buyers looking for investment properties.

The island off the coast of Kien Giang Province has witnessed an amazing transformation, with a series of world-class projects being developed to turn the island into a special economic zone and a tourist hub of not only the region, but also the world.

Phu Quoc, planned as one of three exclusive economic zones in Viet Nam, has introduced incentives such as zero land lease fee, 50 per cent discount on personal income tax and corporate income tax, which has made investment here even more attractive.

The infrastructure system on the island is also developing rapidly with the expansion of the airport and the road system across the island.

Notably, the Prime Minister has given the nod to developing a casino project on the island, which experts see as a potential breakthrough for the island’s tourism industry in particular and for socio-economic development in general. The Government has also agreed to allow Vietnamese to play in casinos under a pilot project.

A number of developers, namely Vingroup, BIM Group, Sun Group and CEO Group, have flocked to the island and poured money into building mega resort and recreation projects. Individual investors have also raced to buy land on the island, lifting prices by some three times within just a few months, especially beachfront land.

A report by Savills Viet Nam showed that 80 per cent of buyers of property assets on Phu Quoc Island came from Ha Noi and 15 per cent came from HCM City, mainly for investment and holiday purposes. 

Bayer innovates to address unmet medical needs

Bayer reported a sales increase of 8.6 per cent to a total revenue of $5.16 billion for its Pharmaceuticals Division in the Asia-Pacific region in 2016, continuing its growth story for the sixth consecutive year.

Innovative products such as the oral anticoagulant and eye medicine continued to contribute significant growth, driven by their expanded use and reach across more markets. Over the last six years the company’s pharmaceuticals sales in Asia-Pacific nearly doubled from approximately €2.6 billion ($2.79 billion) in 2010 to €4.8 billion ($5.16 billion) in 2016.

“Innovation is the foundation of Bayer’s success. Our portfolio of innovative medicines, which addresses the unmet medical needs of patients in the Asia-Pacific region, drives our strong business growth today. Their high acceptance by patients and physicians in the region is encouraging and motivates us to continue innovating to help patients live a better life,” said Claus Zieler, senior vice president and head of commercial operations at Bayer’s Pharmaceuticals Division Asia-Pacific.

In 2016, Bayer’s pharmaceuticals business continued to be one of the fastest growing among multinational companies and among the top 10 in value sales in Asia-Pacific, according to global health intelligence agency IMS 2016 data.

In 2017, Bayer expects sales of more than €17 billion ($18.3 billion) for its Pharmaceuticals Division, globally corresponding to a mid-single-digit percentage increase on a currency- and portfolio-adjusted basis. Asia-Pacific continues to provide a viable growth opportunity, as IMS predicts an average market growth rate of 5 per cent across the region from 2017 to 2020.

On the other hand, the company is increasing investment in research and development (R&D) and enhancing its innovation capability. Last year, Bayer increased its investment in R&D by 9.8 per cent to nearly €4.7 billion ($5 billion). In 2017, the company plans to further increase its overall R&D expenditure to about €4.8 billion ($5.16 billion).

Asia-Pacific has distinct needs for its ageing population. It is estimated that the region, which accounts for more than half the world’s population, will see a doubling of the percentage of individuals aged 60 years and above from 12 to 24 per cent by 2050, making treatment for cancer, cardiovascular diseases, and diabetes a core issue.

“There is a high demand for new treatment options and solutions in these areas of high medical need. We are investing substantially in increasing our innovation capability to develop new and better medicines to help our population age with a high quality of life and keep health systems sustainable,” said Dr. Chuan Kit Foo, head of medical affairs at Bayer’s Pharmaceuticals Division Asia-Pacific.

Bayer’s pharmaceuticals pipeline is well-stocked with more than 50 development projects in Phase I to III of clinical development to serve these medical needs. Among these projects, six of them – in the mid- to late-stage pipeline – will have potential to treat various types of cancers, diabetic kidney disease, worsening chronic heart failure, and uterine fibroids, which are prevalent in the Asia-Pacific population. The combined peak annual sales potential of these projects is estimated to be at least €6 billion ($6.45 billion) globally. To ensure that the Asia-Pacific population is well-represented in its clinical development activities, the company has a robust clinical development programme, which systematically recruits patients from the Asia-Pacific region as part of global clinical trials. The number of ongoing clinical trials conducted has more than doubled from 21 in 2007 to 50 in the region in 2016; 18 of them are in Singapore alone.

In 2016, Bayer continued to expand its collaboration with esteemed scientists, academia, medical institutions and startups in Singapore and across the region. Last December, Bayer broadened its partnership with the National University of Singapore from classical clinical research to open innovation platforms with the launch of Grants4Apps Singapore.

“Partnership is core to our innovation strategy at Bayer. We believe in driving innovation across the value chain by embracing different forms of collaboration, from classical research alliances to new models of open innovation which foster engagement and entrepreneurship of the wider community,” said Dr. Foo.

Transfer centre to be built in HCM City hi-tech park

The Management Board of the HCM City-based Saigon Hi-tech Park (SHTP) on Wednesday awarded an investment licence to the Tay Sai Gon (Western Sai Gon) Vocational College to construct a US$25 million technology transfer centre in the city.

Covering an area of 17,550 square metres in the park, the Wesgo centre is designed to foster international cooperation, knowledge access, technology transfer, and application of new technologies in domestic production.

Basing on studying and applying advanced techniques, the centre will develop concentrated and intensive science research activities. It will encourage pilot studies and new products with high technology content. Nearly $10.6 million out of the total investment will be used to purchase modern equipment serving technological study, application and transfer, and training activities in the centre, especially in terms of automation, new materials, precision mechanics, biotechnology, wastewater and solid waste treatment, and environmental protection.

Once operational, the Wesgo centre will spend 24.5 per cent of its annual revenue on research and development activities.

Work on the centre is scheduled to begin in late this year and finish in the third quarter of 2019.

Winter spring rice enters crop-end with good price

The Mekong Delta has entered the end of the winter spring rice crop with prices remaining high. 

On Saturday, farmers sold rice right after harvest at the price of VND4,800-5,500 a kilogram. Dry rice price saw an extra increase of VND200-400 a kilogram. 

This crop, Bac Lieu province cultivates Mot Bui Do rice yielding bumper crop and good price. Traders have paid VND6,000 a kilogram. 

An Giang province grows many fragrant rice varieties fetching very high prices. The record high has gone to Nang Nhen rice with VND9,000 a kilogram. Nhat (Japanese) varieties fetch VND6,700-8,500 a kilogram.

The Mekong Delta sows over 1.5 million hectares of rice in the winter spring crop with the output estimated to reach 11 million tons.

Rice export volume to the Chinese market has been increasing this year.

Phone accessory imports surge

Phone and phone accessory imports surge by 20.7 percent compared to same period last year, said a representative from the General Vietnam Customs.

While revenue of phone accessory export reached US$ 7.39 billion, a decrease of 10.7 percent compared to same period last year in the first three months, import revenue was $2.89 billion, a soar of 20.7 percent compared to same period last year.

It is estimated that total import-export value in the first three months reached US$89.36 billion, an increase of 17.5 percent compared to same period last year. Of the amount of $89.36 billion, goods export totaled $43.73 billion, accounting for 12.8 percent and goods import totaled $45.63 accounting for 22.4 percent. 

Textile and garment exports in March reached $2.1 billion, a surge of 51.4 percent compared to previous month, bringing the sector’s export revenue in the first three months to 45.63 billion, an increase of 10.2 percent compared to same period last year.

Over 1.86 mln tourists arrive in Can Tho

Department of Culture, Sports and Tourism of Can Tho said, the city received more than 1.86 million arrivals in the first three months of the year, up 10 percent compared to the same period of last year.

Total tourist turnover of the locality reached at over VND 496 billion.

Around 43 travel companies and 244 small- large hotels with over 6,500 rooms operated in the city by March.

In next three months, the department will focus on developing and building new tourist products, services and events such as Tan Loc fruit festival, Cai Rang floating market festival, Ninh Kieu colored lantern night, Phong Dien ecological days and others. 

GDP grows 5.1%, CPI rises 4.96% in Q1

Gross domestic product (GDP) is estimated to expand 5.1% in the first quarter and the consumer price index (CPI) is projected to pick up 4.96% over the same period last year.

The macroeconomic indicators suggest the economy is facing more difficulties than the same period in previous years, the General Statistics Office (GSO) told a press conference in Hanoi on March 29.

GSO general director Nguyen Bich Lam said GDP growth in the first quarter was below 6.12% in the same period of 2015 and 5.48% last year. “It is expected that without many breakthroughs, this year’s 6.7% growth target is unlikely to be achieved,” he said. 

To reach the growth rate of 6.7% as planned, GDP should rise 7% in the remaining three quarters. “This is a tough job since the Government will have to adjust prices of some basic services such as electricity, which will push up production costs,” Lam said.

In addition, the exchange rate between the Vietnam dong and the U.S. dollar will come under much pressure with the U.S. Fed’s further interest rate hikes, he said.

Industry has recorded an increase of only 3.85% year-on-year, the lowest since 2011, with a sharp decline of 90% in mining. Construction has picked up only 6.1%, down from 8.6% in the year-ago period.

The index of industrial production is up a mere 4.1% in the first quarter, far lower than 7.4% in 2016 and 9.3% in 2015.

The inventory index of processing and manufacturing by March 1 had surged 12.5% against the same period last year. The average inventory level in the first two months was 74.3%.

As of mid-March, total money supply had risen by 2.88%, below 3.08% in the same period last year, capital mobilization has increased by 2.43%, up from 2.26%, and credit growth has reached 2.81%.

The CPI in the first quarter has gone up 4.96% over the same period in 2016. This month, the reading has inched up 0.21% against February, despite the price fall in eight out of the 11 commodity groups.

There are a lot of factors pushing up the CPI this month, according to GSO.

The most considerable factor is the price index increase of 7.51% in the group of drugs and healthcare services (particularly 9.86% in healthcare). The reason is 13 centrally-governed cities and provinces have revised charges of healthcare services.

The next factor of weight lies in the education group. The roadmap for tuition fee hikes in Thanh Hoa leads to a rise of 0.75% in this group (0.87% in education services) compared to February.

The transport group in March has recorded a 0.39% increase as a result of the gasoline price hike of VND230-500 per liter on February 18 (during the period when March data are collected).

Other factors come from housing and building materials (up 0.5% from February with a rise of 0.53% in material price, 0.43% in water price and 0.26% in power price), household appliances (up 0.06%), culture, entertainment and tourism (up 0.04%) and post and telecommunication (up 0.03%).

However, March’s CPI is kept low by falling prices of some groups of items, including the highest weighted group in the basket, food and catering services.

This month, food and catering services are down by 0.87% over February. Whereas the price of food has edged up 0.16%, foodstuff prices have dwindled 1.22% and dining-out services have inched 0.49% lower.

The CPI has risen 0.9% compared to December 2016 and 4.65% over the same period last year.

Core inflation has remained unchanged from the previous month and has gone up 6% year-on-year.

Total retail sales of consumer goods and services in the first quarter are estimated at VND921.1 trillion, up 9.2% year-on-year. Excluding the price change factor, the increase is 6.2%, lower than in the first quarter last year (7.5%).

GSO informs enterprises are quite optimistic about the business prospect in the coming time.

A survey by GSO reveals 57.8% of manufacturing and processing firms intend to improve their production and business performance in the second quarter. Some 9.8% of respondents forecast things will get tougher while 32.4% think the situation will be stable.

Land prices in HCMC up 25-40% quarterly

Prices of land have risen more sharply than those of townhouses and villas built in the same area, according to a report of property management and consulting firm CBRE Vietnam.

In the first quarter, the market for villas and townhouses has got five new projects, providing an additional 500 homes. All of these projects are located east of HCMC with four projects in District 9 and one in Thu Duc District.

Prices of villas and townhouses have remained quite stable in most areas. In District 2, the average selling price has increased by 1.4% compared to the previous quarter, while in District 9, it has increased by 1.9%. Other inner-city districts such as Binh Thanh, Go Vap and District 12 have seen price increases of 1.5-3% against the previous quarter.

Meanwhile, the land market has seen more aggressive price movements. In the bustling areas of District 2 such as Thanh My Loi Ward and Binh Trung Dong Ward, land prices have surged by 16-40% over the previous quarter.

In Nha Be, Thu Duc, Binh Chanh and District 12, selling prices have grown by 25% compared to the previous quarter. Prices of land plots in Phu Huu Ward and Phuoc Long B Ward in District 9 have also edged up strongly.

In terms of sales, 50-90% of land plots, especially in well-located projects, have found buyers after opening for sale. In the last quarter, more than 850 land plots were successfully transacted, up 14% over the previous quarter.

Experts say the land market has been faring better thanks to the development of traffic infrastructure in suburban areas. Land plots along the metro lines as well as HCMC-Long Thanh-Dau Giay expressway, Ben Luc-Long Thanh expressway and My Phuoc-Tan Van-Nhon Trach road all have seen higher prices and higher liquidity.

CBRE said that in the coming time, large-scale projects will be launched in many parts of the city. At the same time, the development of infrastructure and the improvement of transport connectivity with lead land prices to shoot up.

However, unlike the market boom in 2007, CBRE believes that investors would be more cautious and careful in making their investment decisions, making the land market more stable.

SOE equitization lackluster in Q1

No State-owned enterprises (SOE) have gone public so far this year, according to the corporate finance department at the Ministry of Finance.

In the first three months of the year, seven SOEs have had their equitization plans approved. They are valued at more than VND1.85 trillion (over US$81.7 million), of which State capital is VND379 billion.

Competent agencies endorsed the equitization plans of 56 SOEs last year, with their total value totaling VND34 trillion and State capital accounting for VND24.39 trillion.

In the 2011-2015 period, 508 SOEs went public with a total value of over VND760.77 trillion, including State ownership of more than VND188.27 trillion.

State capital divestments have exceeded VND14.23 trillion in January-March, well above VND3 trillion they spent earlier. Of the total, State Capital Investment Corporation (SCIC) sold stakes worth nearly VND12.14 trillion in 15 enterprises, including over VND11.28 trillion from the stake sale at Vinamilk.  

Last year, State capital divestments fetched more than VND18.83 trillion, including almost VND4.17 trillion SCIC withdrew from 67 firms.

State groups and corporations pulled a total of more than VND10.72 trillion from non-core operations in 2011-2015, lower than the VND11 trillion they invested. Of which, SCIC divested VND8.73 trillion, over VND5.13 trillion higher than the book value.

The Ministry of Finance said a number of ministries, agencies and localities have not actively restructured SOEs under their management. State holdings at many joint stock companies remain high as they have been unable to achieve their share sale targets. 

The department said the number of enterprises where the State will hold controlling stakes when undergoing equitization is still large, so their share sales cannot attract many investors. This is among the major barriers to improving their governance.

HCMC supports Tuan Chau to build chemical trading center

The HCMC government has thrown its support behind a plan by Tuan Chau Group to develop and operate an aromatic and chemical trading center of regional stature in the city.

Tran Vinh Tuyen, vice chairman of the city government, said at a meeting to discuss this project on March 17 that the city supports the plan to build an aromatic and chemical center by Kim Bien Investment and Construction Joint Stock Company under Tuan Chau Group. Such support was reiterated in a document issued by the city government earlier this week.

The center will be the venue for trading industrial and medical aromatics and chemicals, gathering enterprises and business households from all around the city, helping authorities easily control food safety and fire prevention.

The large, modern warehouse system will not only cater to the need of storage and trade of flavors and chemicals by organizations and individuals in HCMC but also other traders and production facilities from neighboring provinces.

In addition, this will be a center for research, experimentations, consultancy and international exhibitions.

Tuyen also asked the company to submit a detailed construction plan and complete relevant legal procedures to soon develop the project.

Besides, the city’s Department of Industry and Trade needs to map out a detailed plan to relocate aromatic and chemical stores, individual households and enterprises citywide into the center.

At an earlier meeting, Nguyen Ngoc Hoa, deputy director of the HCMC Department of Industry and Trade, said the city now has about 638 chemical manufacturing facilities across the city. Particularly in District 5, there are over 70 industrial chemical facilities and 25 food additive trading facilities in the area around Kim Bien market.

In May 2016, the HCMC Food & Food Stuff Association also asked the HCMC People’s Committee for permission to carry out a project to build a chemical trading center with an estimated investment of VND100 billion.

SECO to finance Mekong Delta flood control project

The Swiss State Secretariat for Economic Affairs (SECO) has decided to provide five million euros for Vietnam to control flooding in three Mekong Delta provinces, An Giang, Kien Giang and Ca Mau, in 2017-2019.

On the sidelines of a workshop titled “Starting Mekong drainage and flood mitigation program” in Can Tho City on March 30, Le Thi Thanh Huyen, national program officer of SECO, told the Daily that the Swiss government would offer a grant of five million euros through SECO.

The State budget and the three provinces benefiting from the project will provide a reciprocal amount of around 500,000 euros. “Thus, the total investment in the project is about 5.5 million euros for the 2017-2019 period,” Huyen said.

Before An Giang, Kien Giang and Ca Mau were chosen to carry out the project, experts from German development agency GIZ, the Technical Infrastructure Agency of Vietnam’s Ministry of Construction and SECO had conducted a preliminary analysis of the Mekong Delta’s 13 provinces.

“After the study, SECO, GIZ and our agency have proposed the Government select three cities in Ca Mau, An Giang and Kien Giang, namely Ca Mau, Long Xuyen and Rach Gia, to implement the project,” said Tran Thi Thao Huong, head of the drainage and wastewater treatment division under the Technical Infrastructure Agency.

There will be three main components, with integrated urban and drainage planning as the first. This component will support the making of rules to address flooding and climate change, and integrate flood risk management into urban planning and local plans. 

The second component is flood risk analysis and planning assistance, which will help with modeling, flood risk assessment, and review and adjustment of existing urban planning.

The third is disaster risk management. This component will aid the establishment of early flood warning systems, and water level measurement to collect, analyze and evaluate information and update urban flood control plans.

Participants in the workshop underscored the need to implement the project, saying it would help localities review the current status of their drainage systems and work out measures to cope with growing flooding in urban areas.

Le Quoc Anh, deputy director of the Department of Construction of Kien Giang, said the existing drainage infrastructure was built long ago, so flooding could occur when it rained heavily or when there were high tides. In addition, there is a lot of sludge in the sewers, making it hard for drainage.

On the objectives of the project, Huong said the overall objective was to enhance adaptability to climate change, and protect people’s assets and income from urban inundation in the Mekong Delta, particularly the three provinces under the project. 

Thua Thien-Hue targets boost to tourism promotion

Popularising tourism will be given top priority to branch out and improve tourism products in the central province of Thua Thien-Hue, in the hope of luring more tourists to the locality.

The province will focus on popularisation work in Japan, the Republic of Korea, Thailand, France, the UK, Russia, the US and Canada. New promotion models will be fleshed out at tourism fairs as part of the efforts.

Joining international tourism exhibitions on key markets is seen as golden chance for the province to access and provide information to foreign travellers.

In a cooperation programme between the province and the Japan International Cooperation Agency, the website www.vietnamhuekanko.com was launched to bring Thua Thien-Hue tourism closer to Japanese people. 

Local images will be popularised through activities at the seventh Traditional Craft Festival from April 28 to May 2 and the opening of Hue Imperial Citadel at night.

The provincial tourism sector will be represented at the Vietnam International Travel Mart Hanoi 2017 to announce the joint tourism destination brand for Thua Thien-Hue, Da Nang and Quang Nam. In addition, the province will work with Da Nang and Quang Nam to launch a roadshow to promote tourism in Bangkok, Thailand.

Local tourism websites in Vietnamese and English will be updated and linked with websites of the Vietnam National Administration of Tourism and foreign cities that Thua Thien-Hue cooperates with.

Along with developing infrastructure like roads to tourist attractions, ports and lighting, the province will also open new air routes to Singapore and other key tourism markets to attract tourists.

The provincial Department of Tourism is establishing a code of conduct in tourism sector. A tourism proposal on developing human resources and branching out lagoon tours and spiritual tours will also be launched.

In the first three months of the year, Thua Thien-Hue welcomed more than 790,000 visitors, up 2.77 year-on-year. Some 313,000 foreign arrivals were recorded in the period, increasing 13.09 percent from the same time last year. Total revenue from tourism totalled 807 billion VND (35.4 million USD), a year-on-year surge of 6.5 percent.

Hanoi’s economy grows 7.06 percent in Q1

Hanoi’s economy grew in the first months of this year, with good performance in the industry-construction and service sectors, according to the municipal People’s Committee.

During January-March, the city’s gross regional domestic product (GRDP) increased by 7.06 percent, the industry-construction sector grew by 6.99 percent, the service sector by 7.26 percent and the agricultural sector recorded growth of 0.54 percent.

Development investment rose by 9.5 percent, while total revenue from goods and services increased by 7.6 percent and export turnover went up 2.1 percent.

In the period, the capital’s investment environment improved as well, with the city climbing 10 spots in the provincial competitiveness index, ranking 14th out of 63 provinces and cities – its highest ever ranking.

The achievements were attributed to municipal authorities’ efforts to attract investment and speed up infrastructure construction and key projects, including reforms in administrative procedures.

In the first quarter, the city focused on attracting foreign investment, with priority given to hi-tech and environmentally-friendly projects and competitive products.

Hanoi recorded 122 new foreign-invested projects with registered capital of 580 million USD. It also witnessed the establishment of 5,800 enterprises with total registered capital of 39.8 trillion VND (1.75 billion USD), up 12 percent in number and seven percent in capital compared with the same period in 2016.

However, in the period, the inventory index of the processing and manufacturing sector remained high, up 65.1 percent from the same period last year. Industrial production recorded growth, but not as much as expected, as several important sectors like food processing and electronics and computer manufacturing reported low growth rates.

In the remaining months of 2017, the municipal People’s Committee directed authorities to focus on fulfilling set targets and plans, especially those related to budget collection and issuing land use right certificates.

Last year, Hanoi’s gross domestic product rose by 8.2 percent – the highest growth rate over the past five years.

Exports gain 12.8 percent in Q1

Vietnam’s export revenue in the first quarter of 2017 rose 12.8 percent against the same period last year to 43.7 billion USD, according to the General Statistics Office of Vietnam.

The foreign direct investment sector (including crude oil) contributed most of the export revenue, 31.4 billion USD or 71.85 percent, up 13 percent while the state owned sector earned 12.3 billion USD, representing a year on year increase of 12.1 percent. 

Positive growth was seen in several key export earners and agricultural products, including textiles and garments which brought home 5.6 billion USD, up 10.2 percent; electronics, computer and components, 5.3 billion USD, up 42.3 percent; footwear, 3.1 billion USD, up 10.5 percent; coffee, 1.1 billion USD, 30.7 percent; and vegetables, 671 million USD, 24.3 percent. 

Vietnam’s export turnover in 2016 is estimated at 175.9 billion USD, an 8.6 percent year-on-year increase.

Social enterprises have trouble landing capital in Vietnam

On the face of it, social enterprises seem to make perfectly good sense for a country like Vietnam, said Thai Thi Huyen Nga, program officer of the Centre for Social Entrepreneurship Development at a recent conference in Hanoi.

Promoting a business model that can do good work in society addressing problems such as poverty while also being self-sustaining seems like the perfect solution to many of the country’s challenges.

However, Miss Nga noted, the fragmented social enterprise ecosystem in Vietnam lags decades behind that found in the UK and other developed nations, leaving the country’s entrepreneurs facing many headwinds.

She added that finding the financial capital to start and get a successful social enterprise up and running is the number one challenge facing the development of this business model in Vietnam.

The meaning of 'Social Enterprise' differs from country to country. In the UK, they are defined as businesses that exist to address public or environmental needs.

However, in the US, the focus is on for-profit businesses that look to simply create or bring about some new and positive change in the world.

In many other parts of the world, such as Vietnam, there simply is no properly legislated definition of such a blended organization.

This means that Vietnamese are left with the layman’s definition of social enterprise, of which there appear to be two – a nongovernmental organization that generates part of its own income through commercial activity –  or a business that exists to profit and do good in the community.

There are now only about 200 such societal enterprises in Vietnam employing very few and contributing little to the gross domestic product, according to speakers from the British Council, one of the conference organizers.

This compares to some 55,000 such businesses in the UK that gross nearly US$34 billion and contribute roughly US$10.5 billion to the country’s GDP per annum, the speakers noted.

They said the segment in the UK employs a total of 475,000 workers and 300,000 volunteers, which equates to such enterprises employing 5% of the total number of workers in the private sector.

Meanwhile, Nguyen Duc Thanh, director of the Vietnam Institute for Economic and Policy Research (VEPR) has issued a report warning that there is very little international support for these enterprises in Vietnam.

In the report, the VEPR states bluntly that the country cannot look to international financial sources for their development but must make full use of local aid especially donations from businesses in the domestic private sector.

Echoing the views of Miss Nga, the report indicated that the main challenge faced by such enterprises in Vietnam, relates to generating enough investment capital or donor funding to pave the way towards sustainability.

Most such enterprises have discovered that international donors will only recognize a registered nongovernmental organization and will not –  in most instances – support a for-profit registered organization, no matter how socially beneficial it is.

On the other side of the coin, from an enterprise development or venture capital perspective, the road to sustainability for a such enterprises are invariably long and fraught with risks, making it an unattractive investment vehicle in most cases.

Therefore, the VEPR report asserts it is fundamentally critical that a simple legal framework for the operation of social enterprises be expeditiously completed and placed in operation in Vietnam.

The challenge for the government is to find a way to make the support of such enterprises in Vietnam attractive to domestic private sector companies to fund as part of their corporate social responsibility initiatives.

Currently, there is little incentive beyond moral compulsion for those with money to support businesses in Vietnam with a social mandate.

HCM City firms asked to ‘say no to informal charges’

The HCMC government calls on the business community to “say no to informal charges” in an effort to make the investment environment more friendly to business, as the city’s competitiveness is not as high as expected due to hindrances such as harassment by officials. An improved business environment will help the city achieve higher economic growth.

Although the city’s economy continued to achieve high year-on-year growth in the first quarter, the Vietnam Chamber of Commerce and Industry (VCCI) has recently pointed out a decline in the city’s 2016 Provincial Competitiveness Index (PCI), said a representative of the Department of Planning and Investment in a report last Friday.

Five indicators recorded a considerable average reduction, including legal institutions (down 0.79), business support services (down 0.18), fair competition (down 0.15), government action (down 0.02) and transparency (down 0.01).

The planning department’s representative suggested the city should focus on measures to better the investment environment and improve the point of the above five indicators.

This quarter, the HCMC government will eradicate or propose removal of as many cumbersome and unnecessary administrative procedures as possible to lower the cost of compliance, focusing on areas where enterprises are facing difficulties such as insurance, land, tax, customs and labor.

In addition, the city will boost the transparency of its business environment to bring down and get rid of informal charges that enterprises are shouldering. Supervision will be enhanced to repress red tape, corruption and profligacy, and improve policies and mechanisms for some sectors where corruption is prevalent.

“The city will call on the business community to “say no to informal charges”, actively equip themselves with skills for information use and dealing with behaviors and manifestations of the lack of transparency in administrative procedures,” the HCMC government talks about the tasks for the coming time.

The report published by the HCMC Department of Planning and Investment last Friday reveals total retail sales of goods and services in the first three months of 2017 reached VND227.54 trillion, up 12% year-on-year.

The city’s consumer price index (CPI) in March dropped 0.09% over the preceding month, with three groups of items registering a slight fall: food and catering services; culture, entertainment and tourism; and other goods and services. Compared to March 2016, the CPI rose 5.6%.

Gross regional domestic product (GRDP) in the first three months of 2017 amounted to VND235.93 trillion, up 7.46% over the same period last year. Specifically, service picked up 7.95%, industry and construction 6.67% and agriculture 5.63%.

HCMC has laid down an economic growth target of 8.4-8.7% for 2017, yet the growth rate in the first quarter was only 7.46%, so the city must work hard in the remaining time to achieve the goal for the whole year, said HCMC Chairman Nguyen Thanh Phong.

Talking on the specific tasks, Phong asked leaders of agencies concerned to work out solutions for development of the key industries, supporting industries, trade in services and the major agricultural products of the city in the coming time.

He said indicators such as “legal institutions”, “business support services”, “fair competition” and “Government action” should receive due attention.

Improved business operations lay foundation for optimism

According to the Agency of Business Registration under the Ministry of Planning and Investment, in 2016, for the first time ever, the number of newly registered enterprises reached more than 110,100 with over 90% coming into operation with taxation activities in practice. This means the number of ghost enterprises (fake companies) sharply reduced and capital is increasing rapidly.

Statistics from the General Statistics Office show that the first quarter in 2017 continued to record an increase in the number of newly registered enterprises, an increased flow of supplemental capital and number of businesses returning to operation at regional and branch scale. In more detail, there are more than 35,700 newly registered companies and those resuming operation in the whole country, of which 26,478 are newly registered ones with a total registered capital of VND271.2 trillion, up 11.4% in the number of enterprises and 45.8% in registered capital compared with the same period of 2016. At the same time, the number of businesses temporarily suspending operation or waiting for bankruptcy announcements reduced by 11%.

The optimistic trend among enterprises has been confirmed, as 75% of respondents stated that their orders and business situation in the first quarter this year were stable or better than the previous quarter. In addition, as many as 90% of businesses said that Q2 will tend to be stable or better compared to Q1 this year.

Furthermore, according to the State Bank of Vietnam, credit growth in the first quarter of 2017 reached 2.81%, the strongest in the last six years, also showing an improvement in the capital absorption capacity of enterprises and banks’ income.

FDI companies in the first quarter of 2017 also recorded a boom, with a total registered capital of new FDI projects, additional capital and investment in the form of capital contribution and purchasing of shares reaching over US$7.7 trillion, up 77.6% over the same period last year, with 74.7% of newly registered FDI projects investing in the manufacturing and processing sector.

In addition, exports of some key industrial and agricultural commodities in Q1 increased sharply over the same period last year. In particular, for the first time in the economic history of Vietnam’s Doi Moi, there is a spectacular change with exports of vegetables and fruits in QI (valued at US$671 million, up 24.3% against last year’s same period) surpassing crude oil export turnover (US$650 million, up 29.7%) - the traditional key export product with the largest contribution to the State budget.

Experts from the World Bank predicted that in 2017 Vietnam's economy would grow from 6.5- 6.7% of GDP, but they also warned that some traditional growth drivers, such as low-cost labour or export-based advantages will not last forever.

For that reason, Vietnam needs to create a foundation for new growth drivers, on the basis of facilitating development for the private sector, exploring opportunities when joining free trade agreements, and introducing more competitive business rules and better mechanisms to create favourable conditions for the business community, as well as improving the export structure with an increasing share of hi-tech exports that Vietnam has outsourced and manufactured.

The reality also shows that the business environment in Vietnam needs and will continue to improve, along with efforts in the improved responsibility, capacity, awareness and consensus of the Party, the State, the people and the business community on promoting anti-corruption and building a supportive government to accompany and support businesses and serve the people.

Thai group pours more money into Vietnam oil refinery

Thai Siam Cement Group (SCG) has become a big investor in Vietnam’s oil refinery after acquiring 25% equity stake in Long Son Petrochemicals Company from Qatar Petroleum.

Earlier, Vina SCG Chemicals (VSCG), a subsidiary of SCG in Vietnam, signed a purchase agreement with QPI Vietnam Limited (QPIV), a subsidiary of Qatar Petroleum, to own QPIV’s 25% equity stake in Long Son Petrochemicals Company, the owner of Long Son Petrochemical Complex.

The US$36.1 million transaction will increase SCG’s holding in Long Son Petrochemicals Company from 46% to 71% while the remaining shares of 29% are owned by state-owned energy firm Vietnam Oil and Gas Group (PetroVietnam).

The first petrochemical complex in Vietnam built at a cost of US$5.4 billion has a capacity of 1.6 million tons of olefin per year. It is equipped with state-of-art technologies and modern equipment to meet environmental protection requirements and to produce high-quality PP and PE plastic products.

It will generate around 15,000-20,000 jobs during the construction process and more than 1,000 jobs after it is put into commercial operation. It will also contribute around US$115 million to the State budget annually within 30 years since it begins operation in 2021.

International exhibitions
     
The exhibitions -- two of them, to be held from August 2 to 4 in the Cambodian capital of Phnom Penh and from September 27 to 29 in Yangon in Myanmar -- will offer Vietnamese firms a good opportunity to understand more about Cambodian and Myanmar’s markets and explore business and investment opportunities.

The events are expected to attract 80-100 exhibitors each and 2,500 trade visitors, according to Minh Vi Exhibition and Advertisement Services Co,Ltd, the organiser.

Ten Vietnamese firms took part in the expos last year and the number is expected to be higher this year.

In addition to showcasing the latest technologies and equipment, as well as agriculture, livestock and fisheries products, the biggest international agricultural exhibitions in Cambodia and Myanmar also feature business matching between suppliers and distributors and professional conferences and seminars to help participants understand the investment opportunities in the two markets.     

Tien Giang enjoys rise in visitors

The Mekong delta province of Tien Giang has become increasingly attractive to domestic and foreign visitors, with the locality welcoming more than 425,000 tourists in the first quarter of this year, a rise of 7.1 percent year on year.

The province attracted some 142,000 foreigners in the period, up 5.8 percent over the same time last year, said Nguyen Tan Phong, Vice Director of the provincial Department of Culture, Sports and Tourism.

Phong revealed that the province earned over 1.35 trillion VND from tourism, an increase of 19 percent year on year. 

An upturn was seen in the number of visitors to major tourists attractions of Tien Giang, including Thoi Son Isle tourist site My Tho city, Tan Thanh site in Go Cong Dong and Dong Thap Muoi ecological reserve.

Phong said that Tien Giang has paid great attention to the building of attractive tours and trips, while upgrading infrastructure system serving tourism and creating favourable conditions for travel businesses.

The province has also focused on fostering links with neighbouring localities such as Ben Tre, Binh Long, Long An and Dong Thap to better exploit tourism potential, Phong added.

Tien Giang is home to 70,000 ha of orchards with numerous local fruits and a dense river and canal network which suitable for ecotourism.

This year, Tien Giang targets 10 percent in tourism growth, while welcoming over 1.6 million visitors. In 2020, the province expects to serve 2.2 million tourists.