Lam Dong tea & silk to be promoted at Da Lat flower festival

A week-long festival spotlighting tea and silk products of the Central Highlands province of Lam Dong is scheduled as part of the Da Lat flower festival.

Provincial officials said at a press conference on December 1 that the event will take place from December 23 to 27 in Bao Loc City, where most of the provincial silk products are produced. It will feature activities honouring tea and silk makers, and a silk fashion show.

Le Hoang Phung, Secretary of the Bao Loc Party Committee, said silk production in Lam Dong is thriving again after years in oblivion.

During 1997 – 1996, the entire province turned out 500 tonnes of silk threads and 1.8 million metres of silk. Now it produces 1,600 tonnes of silk threads on annual basis and expects to make about 6 million metres of silk in 2017. The sector has thus far created some 12,000 jobs for locals.

Bao Loc city plans to build the Bao Loc silk brand, with ten firms earmarked to receive brand certification for their silk products during the upcoming festival.

Deputy PM pushes SOE equitisation

Deputy Prime Minister Vuong Dinh Hue called for speeding up the equitisation of State-owned enterprises (SOEs) at a recent meeting of the Steering Committee for Business Renovation and Development.

Hue asked relevant ministries to finalise the regulations describing the rights and obligations of State ownership representatives in order to boost SOE privatisation. He also asked them to submit reports on the results of SOE restructuring in 2017 to the Government.

Statistics of the Steering Committee for Business Renovation and Development showed that 21 SOEs were equitised between January and November, collecting a total of more than 2.2 trillion VND (97 million USD).

If enterprises under the Ministry of National Defence were included, 43 SOEs were privatised in the 11-month period. As many as 55 SOEs were scheduled to be equitised this year, equivalent to the number of equitised enterpries in 2016.

Four SOEs were allowed to delay their privatisation to 2018, which are the Housing and Urban Development Corporation, Vietnam Cement Industry Corporation, Khanh Viet Corporation and Vietnam Television Cable Corporation.

State capital divestments from January to November collected 25 trillion VND, 20 trillion VND of which came from capital withdrawal from national dairy firm Vinamilk. After liabilities, the divestments were worth more than 5.2 trillion VND in book value.

In the remaining months of this year, the State expected to collect around 10 trillion VND from equitisation efforts. These include the initial public offerings of Song Da Corporation and Becamex Binh Duong and the sale of the State stakes at IDICO and Thanh Le Binh Duong to strategic investors, as well as the divestment from Sabeco.

Hue also asked relevant ministries and agencies to hasten the restructuring and renovation of SOEs in 2016-20 period. On November 22, the Government issued Resolution No 121/NQ-CP to address difficulties facing SOE privatisation and speed up the progress.

Korean firms eye Vietnam partners

Executives from 20 companies based in the Republic of Korea’s Gyeongsangbuk-do Province met with nearly 90 Vietnamese counterparts in HCM City on December 1 to discuss business opportunities.

The companies operate in sectors like cosmetics; food; beverages; and agricultural produce like rice, fruits, and ginseng.

Speaking at the Vietnam-Korea B2B Meeting, Hoang Van Anh of the Vietnam Chamber of Commerce and Industry, said the RoK is Vietnam’s third largest trading partner and Vietnam is the RoK’s fourth largest.

Their trade was worth over 45 billion USD in the first nine months of this year, with Vietnam having a deficit.

The two have similar agricultural produce, but Vietnamese firms need to learn from their Korean counterparts to improve their production, Anh said.

“Vietnamese companies should promote technical cooperation with Korean firms in processing farm produce or can work with Korean companies at the event to promote export of their products to Korea.”

Kim Heung Soo, chairman of the Korean Chamber of Commerce and Industry in the south and centre of Vietnam, agreed with Anh, saying Korean firms should not only think of exporting their products to Vietnam but also consider importing Vietnamese products.

Vietnam has an abundant supply of farm produce, including many high-value specialities at cheap prices, he said.

Kim Chang Yil, a representative of Yeongju city businesses, said the RoK has many kinds of farm produce and processed specialities like red ginseng, ginseng, and fruit juices.

These are of high quality and safe and popular in many countries, he said.

With its rapid economic development and rising incomes, Vietnam has increasing demand for higher quality products, which the Koreans can offer.  

The event, part of the RoK-Vietnam Trade and Culture Exchange Festival being held in HCM City, is expected to further promote bilateral trade, Son In Rak, CEO of Yeoungnam daily newspaper, one of the organisers of the event, said.

The festival, being held from November 30 to December 4, includes activities like a multi-cultural family reunion, an exhibition of Vietnamese and Korean products, a buyers meeting, art performances and a gala dinner.

The event is hosted by Gyeongsangbuk-do Province and Glocal Kim together with the newspaper in collaboration with the VCCI.

Fruits, vegetables export reach 3.16 billion USD in 11 months

The export value of fruits and vegetables hit 292 million USD in November, bringing the 11-month figure to 3.16 billion USD, up 43.2 percent annually, according to the Ministry of Agriculture and Rural Development. 

China, Japan, the US and the Republic of Korea remain major importers with respective market share of 75.6 percent, 3.6 percent, 2.9 percent and 2.6 percent. 

Strong growth was seen in exports to Japan (67.6 percent), the United Arab Emirates (56.9 percent) and China (52.7 percent). 

During the month, fruits and vegetables import reached 142 million USD, raising the import value in 11 months by 72.3 percent annually to 1.41 billion USD. 

The ministry also reported that orange prices further declined in the Mekong Delta to 4,000 – 7,000 VND per kg, or one third of prices last year, mostly due to excessive supply. 

Meanwhile, durian is sold at 130,000 – 160,000 VND per kg, 20,000 – 30,000 VND higher than imported ones. 

In late November, supply of several vegetables recovered, leading to slight decrease in prices.

11-month aquatic products export hit 7.57 billion USD

Export value of aquatic products is estimated at 728 million USD in November, bringing the 11-month value to 7.57 billion USD, up 18.3 percent annually, according to the Ministry of Agriculture and Rural Development. 

The US, Japan, China and Republic of Korea (RoK) are the four leading importers, accounting for 58.2 percent of the country’s total shipment value. Markets seeing strong growth include China (67.9 percent), the Netherlands (47.5 percent), the UK (35 percent) and the RoK (29.5 percent). 

Also in November, aquatic products import hit 150 million USD, raising the 11-month import value to 1.3 billion USD, or a 32.5 percent increase year-on-year. 

In the Mekong Delta, tra fish used as material for processing plants is priced at 26,000 – 28,500 VND (1.15 – 1.26 USD) per kg, or even 29,000 – 30,000 VND in the provinces of Dong Thap and Vinh Long due to limited supply. 

Prices of tiger prawn fell to 140,000 – 200,000 VND per kg wholesale.

Sacombank offers $132 mil credit package to household businesses, small traders
     
Sacombank has set aside VND3 trillion (US$132.15 million) for preferential loans to household businesses, small traders and firms converted from household businesses in HCM City.

The annual interest rate is 6.9 per cent for short-term loans and from 9 per cent for long-term loans.

At a seminar to connect Sacombank with firms, household businesses and small traders in HCM City held on November 30, the bank signed agreements to offer preferential credit to 55 customers in the city.

The bank said it would continue to offer preferential loans to other eligible customers from now until mid-2018.

Nguyẽn Ngọc Qué Chi, Sacombank’s deputy general director, said the bank has for years offered preferential loans to help enterprises, household businesses and small traders cut back operation costs and improve their competitiveness.

The bank has taken part in the city’s programme to connect banks with enterprises for the last five years.

Sacombank together with other banks have provided loans to thousands of enterprises, household businesses and co-operatives in the city’s 24 districts.

Sacombank alone has provided enterprises and business households with preferential loans of up to VND15.3 trillion under the programme, Chi said.

In January this year, Sacombank, the State Bank of Vietnam and the HCM City Department of Industry and Trade signed an agreement to provide a credit package of VND3 trillion for preferential loans to businesses operating in five key sectors: support industry, exports, agriculture and rural development, hi-tech application, and small- and medium-sized enterprises. 

LienVietPostBank and Woori Bank Việt Nam promote co-operation
     
LienVietPostBank and Woori Bank Viet Nam on Wednesday signed a memorandum of understanding (MoU) in payment co-operation in Ha Noi.

Under the MoU, LienVietPostBank will provide financial products and services to meet Woori Bank Viet Nam’s demand, in terms of Vi Viet e-wallets, insurance collection services and agencies for Woori Bank Viet Nam during money transfer from foreign countries.

The two banks expected to offer customers good products and services, taking advantage of their wide network nationwide. In addition, the co-operation would improve business results and the brand name of the two banks in the time to come.

Woori Bank Viet Nam also committed to give priority to use and introduce LienVietPostBank’s products and services to its customers.

Woori Bank Viet Nam is an entirely foreign-invested bank in Viet Nam of South Korean Woori Bank.

Founded in 1899 in Seoul, Woori Bank is one of the leading investment banks in Asia and the largest lender by assets in South Korea. It has transaction offices in Ha Noi, HCM City and Bac Ninh.

LienVietPostBank’s e-wallet was launched in August 2016. It could implement online payments of invoices, services and money transfers safely and quickly.

It is expected that by the end of this year, the e-wallet would have at least 2 million users and 10,000 locations accepting payments through the e-wallet. 

Algeria to export dates to Vietnam

A representative from Algeria’s Ministry of Agriculture revealed that the country is conducting all necessary procedures to export dates to Vietnam. 

Particularly, some Algerian businesses have found Vietnamese partners to negotiate conditions to distribute this product in the Southeast Asian country.

Officials from the Embassy of Vietnam in Algeria joined nearly 160 Algerian and foreign businesses and diplomats at the third international exhibition on dates opened on December 2 in Biskra province - one of the most agriculture-strong localities in Algeria.

The three-day event introduces high-grade dates harvested in oases in southern Algeria, including the popular one Deglet Nour.

It also features handicrafts made from date palms and local farm produce as well as equipment for agriculture, livestock and cultivation.

Sadek Khalil, Director of the Biskra Chamber of Commerce and Industry, said the expo drew a lot of enterprises from African, European and Asian nations with the main goal of promoting agri-products and seek trade partners.

Statistics showed that Algeria exports around one million tonnes of dates annually, ranking fourth in the world in the total output (making up about 14 percent) after Iran, Egypt and Tunisia.

Vietnam improves community awareness about green work investment

Green works have become a global trend, especially when countries like Singapore, Malaysia, and Canada consider it a strategy for sustainable growth. But in Vietnam, green works remain relatively new.

The green movement was launched in the 1990s to reduce greenhouse effects during the construction process. The development of green buildings will bring great benefits to the national economy, society, the environment, and added values, and create sustainable growth for the construction sector and real estate market. 

Economists say there are many ways to understand what a green work is. They might be green trees, architecture, materials, energy and natural resource saving, and waste recycling. Each factor can contribute to the formation of a green work.

Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said “It’s important to increase the production of solar and wind energy, and to produce and transport construction materials without causing greenhouse effects.”

The most obvious benefit of green works is to cut transport costs which often make up more than 80% of investment spending through which to increase the value of assets, speed up the time to return investment capital, and attract more customers.

The development of green buildings for housing for low and middle income earners  has become urgent in Vietnam, particularly when climate change and energies have been exhausted.

Nguyen Thu Nhan in charge of Vietnam Green Work Management Program said “Investors play the vanguard role. When work is completed, investment capital only grows 1.2% but they can save 20% of energy, materials, and water.”

Nguyen Tran Nam, President of Vietnam Real Estate Association, underlined the importance of promulgating specific mechanisms for investors to build more green buildings. He said “We need compulsory, mobilizing mechanisms as well as tax and land use, to share initial costs with investors.”

Vietnam among two slowest-selling automotive markets in ASEAN: report

Vietnam and Brunei were the only two auto markets among members of the Association of Southeast Asian Nations (ASEAN) to have turnover plunge this year, according to a report by the ASEAN Automotive Federation.

Specifically, Vietnam sold 4.% fewer cars as of November this year compared to the same period last year, a drop from nearly 193,000 cars to just under 185,000.

The fall was only behind Brunei, which saw a plunge of 7% year-on-year, from over 9,400 cars to around 8,700 in 2017.

Cars are displayed at a motor show in Vietnam.

Meanwhile, the markets like Thailand, the Philippines, Indonesia and Malaysia reported growth rates of 1%-1.5% over the same period.

Myanmar’s recent opening of its market has resulted in car sales rocketing by 80 percent between 2016 and 2017, from 2,900 to 5,300 vehicles.

Overall, the ASEAN automotive market saw a collective expansion of 5.6%, with growth rates forecast to remain slow in December despite the beginning of end-of-season sales.

Experts attribute dropping car sales in Vietnam to the fact that consumers are waiting for cheaper cars to become available next year as the country is set to reduce tax on imported auto parts within the ASEAN bloc to 0% starting January 1, 2018, which has been made official via a government decree earlier this week.

ASEAN is a political and economic organization whose current members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

In 2009, its members signed the ASEAN Trade In Goods Agreement (ATIGA), which set the timeline for the gradual reduction of import tariffs among the member countries until 2018, including the lowering of taxes on imported motorized vehicles to zero by that year.

Vietnamese businesses ready for Industry 4.0

Vietnam is expected to face both opportunities and challenges brought about by the fourth industrial revolution (Industry 4.0). Vietnam’s small and medium-sized enterprises are doing their best to keep up with latest technologies and global development trends.

Developing countries like Vietnam are not yet ready for Industry 4.0 due to lagging technology infrastructure and human resources. Since the beginning of this year, Vietnamese enterprises have done a lot of research to be better prepared for the 4th industrial revolution.

"Enterprises are urged to use the latest production technologies. For example, we can advertise and sell our products online and offer customers a wider range of products and services. We’ve also adopted software applications for better business and customer management and try to stay updated on the Industry 4.0 latest trends.", noted  Nguyen Van Manh, Director of Quang Huy Minerals Joint Stock Company in Hai Phong city.

Vietnamese enterprises need to revise their business models to include digital technologies. 

According to Le Tuan, Marketing Director of S Vietnam Travel, the three factors that ensure a business’s sustainable development are business knowhow, financing, and human resources. In addition to investment in science and technological development, enterprises should invest more in human resource development. 

"To some extent, technologies will help humans achieve better work results with more precise information and data. However, workers must improve their qualifications in order to control modern technologies. To survive and develop in the fourth industrial revolution, Vietnamese enterprises should pay more attention to training activities to help their staff make full use of technologies.", added Tuan.

Global giants see Vietnam through beer goggles

The young, hops-happy economy is alluring for big brewers like Asahi and Anheuser-Busch InBev.

Traditional markets are as dull as a flat pint. But entrenched interests, tech-like multiples and the mixed experiences of early entrants should caution them to enjoy responsibly.

Southeast Asia’s fastest growing economy also happens to be one of the last large beer markets to privatise. The country’s brew-friendly culture stands out in comparison with emerging Asian nations like India and Indonesia. In Hanoi, street-side “bia hoi” is common as coffee.

This ticks a lot of boxes for suitors, as the government prepares to sell a majority stake in Sabeco, the market’s largest player worth more than US$9 billion. Habeco, the Hanoi rival, should follow. But brewers may wish to wait before clinking glasses.

The opportunity is not news to Big Beer. Heineken has a 5% stake in Sabeco, also known as Saigon Beer Alcohol Beverage Corp, and Carlsberg has a 17% share in Habeco. Both have struggled to win more control and squeeze out rivals.

For Heineken, Vietnam is its second most profitable market, but that is thanks to sales of Tiger lager and other brands.

One problem has been delay. The fiscal structure discourages officials from fast-tracking divestment of a tax-paying cash cow. But the bigger issue is price.

A phased process has driven up shares in Sabeco so they are trading at three times its December 2016 listing price. It now trades at a gobsmacking 43 times forward earnings.

Multinationals are certainly thirsty for growth. Asian players like Thai Beverage and big Japanese brewers face flattening demand at home.

This may explain why Asahi paid AB InBev top dollar for a batch of eastern European labels last year: almost 15 times EBITDA, higher than the 12 to 14 times norm.

The prospect of rivals stepping in is worrying for Heineken and Carlsberg. Either could risk splashing cash to keep competitors out.

But Sabeco’s enterprise value is now 38 times EBITDA, according to Eikon data. That’s a big bet on uninterrupted growth.

Vietnamese mangoes officially enter the US

The US has officially opened the door for Vietnamese mangoes to enter its market, according to the Vietnamese Embassy in Washington D.C.

Dao Tran Nhan, Trade Minister Counselor and Vietnam Trade Office Chief Representative in the US, said the US Department of Agriculture (USDA) approved the import of Vietnamese mangoes into the country.

He said the USDA’s Animal and Plant Health Inspection Service (APHIS) has announced the license to allow fresh mangoes from Vietnam to enter the US market from December 29, 2017.

However, fresh mangoes must be subject to regulations, including orchard and packinghouse requirements, irradiation treatment, and port of entry inspection.  The fruit is also required to be imported in commercial consignments accompanied by a phytosanitary certificate issued by Vietnam’s Plant Protection Department, with an additional declaration stating that the consignment was inspected and found free of Macrophoma mangiferae and Xanthomonas campestris pv. mangiferaeindicae.

This is one of the outcomes of the two countries’ commitments to opening up trade between both sides that their leaders made during US President Donald Trump’s recent visit to Vietnam.

Vietnam’s garment exports in 2018: prospects and challenges

Vietnam’s garments and textile industry is approaching the export target of US$31 billion set for this year. Economists predict the sector will continue to prosper next year.

In 2016 and early 2017, orders from Vietnam’s partner countries fell sharply. In response, domestic garment and textile enterprises have increased their investment in improved production systems, designed more competitive products, and sought new markets. 

As a result, by the end of the third quarter the sector had earned nearly US$23 billion from exports. Fourth quarter revenue is projected to reach US$8 billion, raising the total export turnover to US$31 billion, up 10% over last year.

If that goal is reached, Vietnam will rank 26th in the world for textile and garment export turnover.

This achievement is attributed to businesses’ careful preparations and the government’s policy to support the development of auxiliary industries. 2018 is expected to be a thriving year for the industry with 2-digit growth.

Nguyen Xuan Duong, President of the Hung Yen Garment Corporation, said “In 2018, there might be many orders and a great volume of products but prices will drop. It’s a common trend in all markets and is causing headaches for Vietnamese garment and textile enterprises because all types of input costs including workers’ salaries are on the rise. Increasing labor productivity through improving technology, equipment, and business management is considered the only solution.”

Pham Tat Thang, a senior researcher with the Ministry of Industry and Trade, said Vietnam's textile and garment import markets are experiencing unforeseen fluctuations caused by trade protectionism.                      

“Major markets are closing and this affects Vietnam. With competitors like Pakistan and China thriving, Vietnam must improve its competitiveness. Domestic companies should invest more in technology to catch up with the leaders tendency,” Thang noted.

The industry’s competition is forecast to become fiercer as breakthroughs in science, technology, and IT create rapid changes in production and supply models. Vu Duc Giang, Chairman of the Vietnam Textile and Garment Association called for combining production, development of technology, branding, promotion, and mastering of advanced technologies, especially made-in-Vietnam technologies.

He added “We have asked the government to prevent the penetration of imitation brands into Vietnam. The Vietnam Garment and Textile Association has been developing many support policies to help the industry and companies in the field grow sustainably.”

Vietnam’s securities market attracts more foreign capital

Macro-economic stability, positive economic growth, the government’s efforts to improve the investment environment, and the growing private sector are making the Vietnamese securities market more attractive to foreign investors.

vietnam’s securities market attracts more foreign capital hinh 0 With its rapid growth, the securities market is becoming an effective capital mobilization channel. 

Over the past few months, the VN Index reached its highest point in 9 years and has increased 17% since the beginning of the year. According to the Ho Chi Minh City Stock Exchange, foreign investors have in the last 8 months invested VND14 trillion in HOSE stocks.

The growth has been attributed to Vietnam’s clear and extensive economic integration policies. The government has made an effort to promote the private sector and reform SOEs. 

Nguyen Duc Hung Linh of the SSI Company said “Most SOEs own major market shares. The market capitalization will increase once these SOEs are listed.

Total market capitalization now accounts for half of GDP. If the 100 biggest enterprises are listed that will increase to 80% of GDP. This will attract more foreign investors.”

The Vietnamese government has implemented macro measures and fine-tuned market management and regulation policies to attract foreign investment. 

Dr. Can Van Luc, a banking financial expert, says the securities market has soared since the National Assembly resolution on dealing with bad debts took effect in August. 

“The resolution specifies requirements for settling bad debts which are very helpful for the banking system. This is the reason bank stocks are increasing. The securities market will grow even more as bad debts are settled,” said Mr Luc. 

More than 11% of investors in Vietnam’s securities market are foreigners. Most of the 45 investment funds are foreign. Economists predict that Vietnam’s securities market will continue to grow and the VN-Index will surpass 800 points.

Vietnam, Nigeria firms seek opportunities at Hanoi forum

The Vietnam Chamber of Commerce and Industry (VCCI) hosted the Vietnam – Nigeria Trade and Investment Forum in Hanoi on December 4, giving the two countries’ businesses a chance to seek business opportunities. 

Speaking at the event, VCCI Vice Chairman Doan Duy Khuong said Vietnam’s total foreign trade has hit 359 billion USD and the country is home to more than 22,000 projects worth upwards 290 billion USD invested by over 100 countries and territories. 

Vietnam can be an important gateway for Nigerian firms to access large markets, especially the ASEAN, he said, vowing to serve as a bridge for the two nations’ enterprises to do long-term business. 

According to the VCCI, two-way trade between Vietnam and Nigeria has topped 250 million USD annually over the past five years. Vietnam enjoys big trade surplus with Nigeria, but it buys cashew nuts, cotton, fruits and vegetables from the African country. The two nations hold potential of partnership in agriculture, farm produce processing, apparel, mining and construction materials. 

Oye Akinsemoyin, Chairman of the Nigeria-Vietnam Chamber of Commerce and Industry, suggested that the two countries should tap each other’s strength to develop the processing industry, including farm produce, while helping each other to boost exports of unprocessed products. 

Nigerian Ambassador to Vietnam Fransis Efeduma said the African country wants to tap Vietnam’s technology to churn out locally-made products.

Restarted First Solar plant draws in series of satellite projects

A series of investors announced intentions to develop satellite projects, including assembly facilities as well as component manufacturing factories, to serve the US' First Solar project after it resumed construction with extended investment capital and capacity.

According to VIR’s sources, on November 10, Ho Chi Minh City Export Processing and Industrial Zones Management Authority (HEPZA) licensed Von Ardenne Vietnam JSC (Hong Kong) to develop a $300,000 factory to assemble equipment and machinery for the First Solar project.

The investor hired the available workshop of Saigon VRG Investment Holding Corporation (Saigon VRG)—the owner of the Southeast Industrial Park—and then installed equipment and machinery to start operations in January 2018.

Previously, Tran Nhu Hung, deputy general director of Saigon VRG, told VIR that dozens of investors dealing in manufacturing electric components and packaging arrived to the IP to find investment opportunities. All of them are satellite projects of First Solar.

First Solar’s project was licensed in January 2011 and started construction two months later. At the time, the investor said the facility’s $300-million first phase, with a production capacity of 250 megawatts per year, would start operations in late 2012.

According to plans, the total investment in the project would eventually reach $1.2 billion. It would be the first solar panel manufacturing facility in Vietnam employing advanced thin-membrane technology.

However, just eight months after the construction was kicked off, the investor announced postponing the project.

In 2012, First Solar announced plans to sell its factory and leave Vietnam, but failed due to unfinished legal procedures.

This July, after years of looking for suitable investors to take its place, First Solar decided to resume the project.

Accordingly, along with maintaining the installed equipment and implementing the construction of unfinished stages, First Solar has drawn up the environmental impact assessment report and completed the import-export procedures for goods and machinery to serve the plant’s operations.

According to the latest movements, HEPZA has granted the adjusted investment certificate for the project. Accordingly, the investor decided to pour in an additional $62 million. The reason for the capital adjustment is exchange rate differences leading to the real investment capital being higher than initially expected.

Besides, the investor is permitted to double the annual capacity of the plant to 5.31 million modules. Simultaneously, First Solar confirmed installing the most modern technology at the plant.

According to First Solar's new plan, the plant will start operations in September 2018.

Car imports up in November

Vietnamese businesses spent some US$200 million to import 7,000 completely built-up units (CBUs) in November, according to an estimate of the General Statistics Office (GSO).

The month saw increases of $45 million in value and 1,000 units in volume in comparison with figures of the previous month.

GSO said import volume in September and October was 6,000 units per month – the lowest record in the last two years, with values of $155 million and $165 million, respectively.

The recovery of import turnover of CBU cars in November is mainly attributed to the demand for cars at the end of the year ahead of Tết (Lunar New Year). At the same time, this is also the time when many auto firms complete signed contracts with foreign partners to ship cars to Việt Nam.

In fact, the market has not shown promising signs for car imports because consumers are still waiting until January 1, 2018, to buy cars imported from Thailand and Indonesia at lower prices once the import tax is reduced to zero per cent in the ASEAN bloc.

Auto importers have suffered from Government’s Decree 125, which includes a group of auto parts not yet produced domestically on the list of goods enjoying tax incentives at the rate of zero per cent.

As soon as Decree 125 comes into force on January 1, 2018, some domestic automobile manufacturers and assemblers, such as Trường Hải Auto Corporation (Thaco) and Thành Công Hyundai, reduced the retail price of automobiles by between three per cent and five per cent.

According to GSO, total import of CBU cars in the 11 months of this year is estimated at 84,000 units, worth over $1.9 billion, down 14.7 per cent in volume and 11.4 per cent year-on-year.

PVEP achieves 2017 goals ahead of schedule

The PetroVietnam Exploration and Production Corporation (PVEP) achieved all its 2017 goals by November 29, 32 days ahead of schedule. 

PVEP fulfilled the task of tapping 3.55 million tonnes of oil and condensate as assigned by PetroVietnam. It also tapped 843 million cu.m of gas out of the total 2.795 billion cu.m that PetroVietnam exploited by October 8, hitting its target 84 days early. 

Total revenue was estimated at 31 trillion VND (1.37 billion USD) as of late November, 1 percent higher than the target while revenue to the State budget reached 7.8 trillion VND, 12 percent above the yearly plan. 

PVEP General Director Ngo Huu Hai said 2017 is the third consecutive year petrol prices have been kept low, making it hard for PVEP to find capital. To counter this, it cut unnecessary investment, restructured divisions and saved operating costs. 

Between now and the year’s end, PVEP will continue tapping additional 1.3 million tonnes of crude oil and 1.5 billion cu.m of gas as assigned by the Government, contributing to gross domestic product growth and State budget collection.

Operator says will maintain tollgate despite repeat protests

The toll plaza on National Highway 1A passing through Tien Giang Province’s Cai Lay Town will not be relocated despite repeat protests by drivers, said a representative of the tollgate operator.

Talking to the media on the morning of November 30 after the tollgate, known as BOT Cai Lay, resumed  operation after a three-month-and-a-half interruption, Luu Van Hao, vice chairman of National Highway No. 1 Tien Giang Investment Co., Ltd (BOT Tien Giang), said there would be no relocation of the tollgate even when drivers reacted strongly as they did last August.

“That [tollgate relocation] will not happen… Toll collections will be as usual,” he said in reply to a question about whether the tollgate would be relocated over drivers’ strong reactions.

Even in the case that the Ministry of Transport reimburse the investment spent on improving National Highway 1, Hao said his company would still not think of relocating the tollgate from the national highway to the bypass.

Drivers have long demanded that the tollgate be relocated to the bypass developed by the company, saying it is illogical for the gate to stay on the national highway as the investor had spent just a small sum upgrading a section of the highway.

Soon after the BOT Cai Lay tollgate restarted operation yesterday, many drivers objected to paying the fees, albeit lower than before, so they used banknotes of small denomination such as VND200 and VND500 or those of big denomination like VND500,000, leading chaotic traffic congestion there.

Given the heavy traffic jam, it had to let vehicles pass free at 12:30 p.m.

With regard to the inspection of the investment and the toll collection duration, according to Hao, the ministry has just reconsidered the value and the legality of the project. Details about the duration will be taken into account once the final valuation is worked out.

Loan rates expected to fall after Tet

Large banks have hiked their annual deposit rates over the past two weeks to raise more capital to meet the rising demand for loans in the lead up to the Lunar New Year, or Tet, but post-Tet lending rates are expected to fall, according to Dau tu Chung khoan newspaper.

At VietinBank, the rates for six- to nine-month deposits have edged up to 5.8% from 5.5-5.7%. The rates for tenors of 12 months and more than 36 months are 6.8% and 7% respectively.

BIDV has also revised up its interest rates for savings of one and two months to 4.8%. The rates are 5.2% for three-month savings and 6.9% for deposits of nine months or longer.

Le Minh Hung, governor of the State Bank of Vietnam (SBV), said the central bank has told commercial banks to speed up the settlement of bad debt, reduce unprofitable assets and cut interest rates to help enterprises lower costs.

However, interest rates at banks in Vietnam depend on many factors such as capital demand and supply, macroeconomic development, exchange rate stabilization policy and the banking system’s security.

The Government and the central bank will keep inflation low and ensure liquidity at banks to cut lending rates.

Banks currently offer an average annual lending rate of 8% for medium- and long-term loans and 9-10% for other loans.

In addition, interbank interest rates for both Vietnam dong loans and deposits from November 13 to 17 increased by between 22 and 125 basis points for many tenors. The same situation was also seen at transactions in U.S. dollar with an increase of 10 to 166 basis points.

SBV has injected VND20.6 billion (US$0.91 million) via open market operations (OMO) channel and issued VND1.9 trillion worth of new promissory notes while debt falling due this week totaled over VND12.2 trillion.

Thus, the central bank has net injected VND10.305 trillion into the market, taking the total net injections via the two channels to nearly VND10.33 trillion.

According to a report of the National Financial Supervisory Commission, the amount mobilized in the first ten months of 2017 grew 12% over last year while the central bank reported credit growth of 13.66% in the period.

HCMC: Real estate firms outnumber other sectors

The number of newly-established enterprises in HCMC in the year to end-November has surged, with property companies making up the largest proportion, 42.2%, according to the city government.

In January-November, nearly 37,600 enterprises were set up with total registered capital of VND500.8 trillion (US$22.04 billion), up 14.1% and 87.9% year-on-year respectively.

The number of enterprises in wholesale and retail, and automobile and motorcycle repair sectors ranked second with 15.7%, followed by construction firms with 12.1%, and those specializing in science, technology, consulting, design and advertising with 6.8%.

Real estate businesses had total registered capital of VND212.2 trillion, surging 95.3% over the year-ago period.

The city has encouraged household businesses to convert into enterprises, and in the 11-month period, nearly 2,800 family-run businesses turned into firms.

As for foreign investment, the city attracted US$5.57 billion in the period, up a staggering 96.6% over the same period last year.

Most of the new foreign investments were committed to property projects, amounting to VND984 trillion equivalent, 50.8% of the total, followed by processing, manufacturing, wholesale and retail sales, and repairs of automobiles and motorcycles.

Samsung pledges support for local firms to join supply chain

Samsung Vietnam on November 30 reiterated its promise to continue assisting Vietnamese firms in improving performance so that they can participate in the South Korean corporation’s supply chain.

General director of Samsung Vietnam Shim Won Hwan told chairman of HCMC Nguyen Thanh Phong at a meeting here on November 30 that the corporation will send Korean experts to local firms to provide technical support.

The meeting with the leader of HCMC where Samsung operates a sprawling electronic complex came just one day after the Korean conglomerate had a meeting in Hanoi with local suppliers on Wednesday (see related story page 2).

At the meeting, Phong spoke highly of Samsung’s success in Vietnam, especially in HCMC. The city’s leader pledged to create favorable conditions for Samsung to expand its operations in HCMC.

The Korean firm has become the largest foreign investor in Vietnam, with its total investment pledges amounting to US$17 billion. Particularly, Samsung has invested US$2 billion in the Samsung Electronics HCMC CE Complex at the Saigon Hi-Tech Park in District 9.

Samsung expected exports of electronic products made or assembled in Vietnam would reach more than US$50 billion this year.

At present, less than 30 of 100 businesses involved in the supply chain of Samsung Vietnam are local firms. The remainders are foreign-invested enterprises or joint ventures.

The corporation expected there will be 50 local firms becoming its suppliers by 2020.

In fact, many foreign-invested companies have said they are struggling to find Vietnamese suppliers, especially those able to provide hi-tech components.

Taiwanese Group eyes Dong Nai food investment

Taiwan’s Want Want Group is planning to invest in a $160-million rice cake factory in southern Dong Nai province.

The Group’s CEO Lee Yu Sheng recently held a meeting with the Deputy Chairman of the Dong Nai Provincial People’s Committee to determine its investment policies in the food industry.

The factory’s estimated investment in the first phase is about $60 million and then $100 million in the second phase.

Want Want is a multi-disciplinary corporation founded in 1962. It began to produce food and beverages then expanded into other areas such as real estate, hotels, agriculture, medical, insurance, and media.

According to provincial figures, Taiwan ranks second out of more than 40 countries and territories investing in Dong Nai, with 1,457 valid FDI projects worth more than $27 billion.

In the first eleven months of this year, Dong Nai attracted 73 FDI new projects worth $586.1 million while 78 existing projects increased their investment, by $330.5 million. Projects include the $60 million Powerknit Vietnam Co. project from the British Virgin Islands, the $80 million in additional capital for the Pou Sung Vietnam project, the $55 million Pou Phong Vietnam Co. project from the British Virgin Islands, and the $24 million Phu Lam Plastic Industry JSC project from Taiwan.

The provincial Department of Planning and Investment estimates the province will attract FDI worth $1.5 billion in 2017.

According to provincial authorities, Dong Nai has advantages in climate, with enterprises investing in the province never at risk of suspending operations due to natural disasters. Its industrial zones have good infrastructure, so the cost of building a factory is cheap and transportation is convenient.

More FDI companies and groups have come to Dong Nai in recent times to determine policies and procedures when investing in the province in the fields of industry, agriculture, and the environment. 

According to Mr. Olaf Muller, Managing Director of the Eggersmann Equipment Manufacturing Group from Germany, the group is looking to invest in Dong Nai in the field of industrial and waste treatment, with the most modern technology in the world. Dong Nai has a very favorable location for investment because of its large land area, favorable climate, and transportation links.

Many investors from South Korea, Japan, China, Taiwan, Finland, the US, and France have come to the province with a desire to invest or expand their investment.