International Maritime Expo opens in HCM City

     

More than 200 domestic and international companies and brands are showcasing all aspects of shipbuilding, marine services and engineering, marine equipment, and port and supply chain management solutions at the 7th International Maritime Expo that opened in HCM City on Wednesday.

This year’s expo features a shipyard pavilion with the presence of 25 shipyards. They include some of the biggest names in the industry such as Saigon Shipbuilding & Marine Industry Co., Ltd, Damen - Song Cam Shipyard Co., Ltd, Saigon Shipbuilding Industry Co., Ltd, Pha Rung Shipyard, and Hai Minh Shipyard – Ba Son Corporation.

National pavilions from Singapore, South Korea, the Netherlands, and the UK are present to tap into Viet Nam’s burgeoning growth.

One of the national pavilion exhibitors is the Society of Maritime Industries, the voice of the UK’s maritime engineering and business sector.

The Netherlands Pavilion is led by the Netherlands Maritime Technology trade association, which is the first port of call for and the primary representative of the Dutch maritime technology sector.

A series of seminars on topical issues in the maritime industry has been arranged.

Local and international industry players will share their expertise in important current issues at the seminars at the three-day INMEX Vietnam.

Xue Hua, managing director of Weichai Vietnam, said: “As one of the main industries in Viet Nam, the marine business is driven by the country’s growing economy and is becoming more attractive to prominent international marine product manufacturers.

“Viet Nam is the key marketplace for Weichai in marine and vehicle engines. We would like to keep playing a key role in shaping the continued growth of Viet Nam’s marine industry.”

The long-term prospects for the Asian maritime industry are very optimistic since Asia is one of the fastest-growing regions in the world, Michael Duck, executive vice president of UBM Asia, said.

The main growth in shipbuilding would come from the Asia Pacific countries, with Viet Nam being one of them, he said.

The marine engines market is set to surpass US$13 billion by 2024, according to a report by Global Market Insights.

In Viet Nam, the maritime-related businesses are forecast to account for 50 per cent of Viet Nam’s national economy by 2020 with sea-related trade volumes expected to triple that year.

Numerous trade deals are expected to be signed by Viet Nam with other countries in the coming years, and the number and capacity of Viet Nam’s ports are insufficient for the imminent economic growth.

With average annual export growth of 12 per cent, Viet Nam’s port infrastructure needs continuous and further development to facilitate its growth.

The latest maritime technologies and solutions are required to facilitate that growth, Duck said.

The expo, organised by Informa Exhibitions Pte Ltd and Vietnam Trade Fair & Advertising Joint Stock Company (VINEXAD) at the Saigon Exhibition and Convention Centre, runs until March 29. 

Vietnam International Travel Mart 2019 kicks off in Hanoi

Deputy Prime Minister Vu Duc Dam, head of the state steering committee for tourism, and other officials cut the ribbon to open the Vietnam International Travel Mart (VITM) 2019, in Hanoi on March 27. 

Speaking at the opening ceremony, Minister of Culture, Sports and Tourism Nguyen Ngoc Thien said Vietnam is striving to welcome at least 18 million foreign tourists and serve over 85 million domestic holidaymakers, earning more than 700 trillion VND (30 billion USD) in revenue this year. 

Apart from green, home-stay and resort tourism services, Thien suggested the tourism sector fully tap modern technology and local advantages to meet tourists’ demands, thus turning Vietnam into an attractive destination in the region. 

Themed “Green Tourism”, the VITM 2019 afforded domestic and foreign travel agencies a chance to discuss future business opportunities as well as introduce new destinations and products to the public. 

Vu The Binh, Vice Chairman of the Vietnam Tourism Association (VTA) and head of the VITM 2019 organising board, said 2019 is the seventh year the VTA has held the VITM under the direction of the Prime Minister and a project approved by the Minister of Culture, Sports and Tourism. 

The VITM 2019 is the largest of its kind, attracting 720 businesses and tourism promotion agencies from 27 countries and territories worldwide as well as 47 Vietnamese cities and provinces. In particular, the Democratic People’s Republic of Korea (DPRK) and Peru joined the event for the first time. 

The event is expected to draw up to 85,000 visitors. Notably, exhibitors will sell over 100,000 low-cost air fares and about 18,000 affordable package tours. 

Forums themed “Green tourism”, “Vietnam’s outbound tourism: Opportunities and challenges”, and a seminar on Vietnam’s tourism amid the fourth industrial revolution are also scheduled to take place at the VITM 2019.

Vietbuild Hanoi 2019 opens

At the opening ceremony 

The Vietbuild Exhibition Hanoi 2019 opened on March 27, focusing on construction, construction material, real estate, and interior-external decoration.

Addressing the opening ceremony, Deputy Minister of Construction Nguyen Van Sinh said that the exhibition is expected to help Vietnamese firms set up partnership with their peers from 18 countries and territories.

This is also a chance to attract foreign investment to construction and real estate sectors, he added.

He advised that the organising board hold more conferences and seminars to introduce products, while calling for the engagement of prestigious firms to share experience in developing high quality products and modern technology.

Meanwhile, Nguyen Tran Nam, Chairman of the Vietnam National Real Estate Association, said that the construction and real estate sector has seen expansion in all market sections, especially coastal high-end property.

Over the past few years, the Government has designed various policies to help construction and real estate businesses access new technology and attract foreign direct investment, he noted, holding that Vietbuild is a good playground for them to learn from the experience of foreign firms.

Vietbuild Hanoi 2019 will take place from March 27-31 with more than 1,600 pavilions by over 400 businesses from 18 countries and territories.

Within the event’s framework, a conference will be held on the development of new power-saving and environmental-friendly construction materials, aiming to encourage businesses to research and produce new resources for green and sustainable urban development.

This is the opening event in a series of 10 Vietbuild exhibitions in Hanoi, Ho Chi Minh City, Da Nang, and Can Tho. 

HCM City looks to attract more Canadian investment

At the reception 

Ho Chi Minh City’s authorities will create favourable conditions for foreign investors, including those from Canada, to invest and do business in the city, according to Vice Chairman of the municipal People’s Committee Le Thanh Liem. 

The official made the affirmation at a reception for visiting Chairman of Canada Trade Link Bryon Wilfert in the city on March 27, during which he expressed the hope that it will welcome a new wave of investment from Canadian enterprises in the near future. 

He highlighted the fruitful development of the Vietnam-Canada relations in recent times, saying that the relationship is in the most productive period of their 45-year diplomatic ties, with the two countries conducting many exchanges of high-ranking delegations and upgrading their bilateral ties to the level of comprehensive partnership in November 2017. 

He spoke highly of the visit of the Canada Trade Link representative to Vietnam and the city, saying that this shows the Canadian government and business community’s active interest in promoting cooperation between the two countries. 

Liem noted Canada’s proposals on cooperation between Canadian localities and Ho Chi Minh City, expressing his belief that with willingness and efforts on both sides, especially the role of Canada Trade Link in business connection, the cooperation will develop strongly, positively contributing to promoting the Vietnam-Canada comprehensive partnership. 

While expressing his impressions of Vietnam during his working visit, Wilfert stressed that on the basis of the sound relations between the two countries, the economic, trade, and investment cooperation between the two sides has many opportunities and much potential for stronger development. 

The visit aims to promote trade and investment cooperation between the two countries in the context of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) taking effect.

Wilfert said Canadian businesses are impressed by the dynamic development of Ho Chi Minh City and that they want to do long-term business and investment activities in the southern hub, especially in fields with such potential as education-training, high technology, and waste treatment. 

By the end of 2018, Canada had 80 investment projects worth 118 million USD in the city. There are some 22,000 Vietnamese students pursuing their studies in Canada.

Vinamilk inaugurates Vietnam’s largest dairy cow farm in Tay Ninh

The Vietnam Dairy Products Joint Stock Company (Vinamilk) inaugurates a dairy cow farm in Tay Ninh province. 

The Vietnam Dairy Products Joint Stock Company (Vinamilk) inaugurated a dairy cow farm in the southern province of Tay Ninh on March 27 which covers a total area of 685 hectares, making it the largest of its kind in Vietnam.

The farm designed to raise 8,000 dairy cows was built at a cost of 1.2 trillion VND (51.7 million USD) in Long Khanh commune, Ben Cau district. It meets global good agricultural practices in terms of farm management and milk quality.

According to Vinamilk General Director Mai Kieu Lien, the operation of the farm in Tay Ninh will contribute to raising the total number of dairy cows in Vietnam serving Vinamilk to 200,000 by 2020, meeting the fresh milk material demand for production.

The farm not only helps Vinamilk achieve its growth targets but also contribute to local economic development, she added.

Addressing the inaugural ceremony, Tran Van Chien, Deputy Chairman of the provincial People’s Committee, hoped Vinamilk would build a milk processing plant in the province in the near future.

On the occasion, Vinamilk presented 61,633 cups of milk to children in Tay Ninh province. 

Deputy PM orders effective mineral management

Deputy Prime Minister Trinh Dinh Dung at the inauguration ceremony of Vinacomin's copper plant No.2 

Deputy Prime Minister Trinh Dinh Dung on March 27 stressed the need for effective management and exploitation of minerals for sustainably developing the economy while ensuring national defence and security and protecting the environment.

He made the remarks while attending the inauguration ceremony for the Vietnam National Coal-Mineral Industries Holding Corporation Limited (Vinacomin)’s copper plant No.2 at Sin Quyen copper complex in the northern province of Lao Cai.

Dung said that the plant’s operation is a significant move to improve the efficiency of Sin Quyen copper mine, helping ensure sufficient materials for domestic consumption and export.

The plant, invested with more than 2.56 trillion VND (110.1 million USD), is part of the project to improve the capacity of Sin Quyen copper complex. With a designed capacity of 44,200 tonnes of copper ore each year, the plant is expected to supply enough materials for local refining companies. Since its commercial operation in January this year, the plant has mined nearly 3,400 tonnes of copper ore.

As Lao Cai has abundant mineral and natural resources, Deputy PM Dung asked the province to continue support for mineral projects in the locality, especially in the compensation, land clearance and resettlement work. 

Besides, it should join hands with competent agencies to map local mineral reserves, and zone off areas having prospects for natural resources development, he said.

As for Vinacomin, Dung hailed the corporation’s efforts in overcoming challenges to develop production and business as well as ensure national power security. He ordered the group to accelerate its projects, particularly the Lao Cai copper refining plant, so that the total copper refining capacity can reach 30,000 tonnes after 2020.

In addition, he said that Vinacomin should apply more advanced technologies into production, and pay due attention to environmental protection, labour safety, development of essential infrastructure, and improvement of local livelihoods, among others.

Quang Binh secures over 2 billion USD invested into economic, industrial zones

Industrial parks and economic zones in the central province of Quang Binh have attracted nearly 2.15 billion USD during January-March.

 Industrial parks and economic zones in the central province of Quang Binh have attracted nearly 50 trillion VND (2.15 billion USD) to 122 projects in the first three months of this year, the chinhphu.vn reported.

Of this, foreign investors poured 18.2 million USD into three FDI projects in the period.

Head of the provincial Economic Zone Management Board Pham Van Nam said on March 27 that the board has paid due attention to investment promotion activities to lure major investors.

The board has set up a database and update information on investment laws and local demands to connect domestic and foreign partners, he stressed.

In the coming time, the province will coordinate with competent agencies to popularise local potential and choose projects which fit its development strategies and make huge contribution to the State budget.

The province will support the investors to complete procedures and remove bottlenecks they are facing so that they can enjoy good business operation in the locality, he added.

Vietnam's digital trade may be worth $42 bn by 2030

The economic value of digital trade-enabled benefits to Vietnam’s economy is estimated to be worth VND81 trillion ($3.5 billion) but this could grow 12-fold under the right settings by 2030, according to “The Data Revolution: How Vietnam can capture the digital trade opportunity at home and abroad” report released on March 26 by the Hinrich Foundation with the Central Institute for Economic Management (CIEM) and AlphaBeta. The report assesses the current and future potential value of digital trade for Vietnam’s economy.

The value of digital trade is estimated to reach VND953 trillion ($42 billion) by 2030, which is equivalent to 9 per cent of Vietnam’s projected GDP, according to the report.

Potential benefits are spread across all sectors of Vietnam’s economy but are particularly relevant in infrastructure, financial services, manufacturing, and agriculture and food.

The research employed a broad definition of “digital trade” that covers the production, distribution, marketing, and sale or delivery of goods and services - domestically and abroad - supported by cross-border data flows.

Vietnam’s digital exports in 2017 were estimated to be worth over VND97 trillion ($4.3 billion). This makes it the country’s eighth-largest export sector, accounting for 2 per cent of its total export value. If digital trade is fully enabled, Vietnam’s digital exports could potentially increase by almost seven-fold to reach VND652 trillion ($28.7 billion) by 2030.

According to the report, besides creating value from abroad through digital exports, digital trade also supports large productivity improvements in Vietnam’s domestic sectors. Yet, traditional economic measures fail to adequately measure the value of digital trade to exports and Vietnam’s economy.

A robust fact base is therefore crucial to ensure that the value of digital trade is fully appreciated and taken into account when formulating trade and economic policy. This includes assessing (a) the current and future value of the digital trade opportunity for Vietnam’s exports and the domestic economy; (b) perceived concerns relating to digital trade abroad and how these could be addressed without unduly impeding digital trade flows; (c) priority areas Vietnam could focus on in order to fully harness the benefits while managing the potential risks of digital trade.

Temasek boosts holding in VNG JSC

The VNG JSC has announced the completion of the sale of 355,820 shares with an average selling price of VND1.8 million ($77.4), higher than the VND800,000 ($34.4) minimum offering price, which its General Meeting of Shareholders has passed.

The buyer is Seletar Investments, a subsidiary of the Temasek Investment Group, owned by the Singaporean Government. Seletar now owns 1.74 million shares, equivalent to 5.04 per cent of capital and 6.35 per cent of shares.

Another investment unit related to Temasek, Gamvest Pte. Ltd., also holds a 10.25 per cent stake in VNG.

The result of this offer, reaching VND662 million ($28.5 million), will be used to expand VNG’s presence in domestic and foreign markets as well as serve some future investments.

VNG still holds more than 7.1 million of the total of 34.54 million shares issued.

If calculated by the average selling price after this last sale of treasury stocks, VNG is valued at about VND64.4 billion ($2.77 billion).

In March 2017, VNG signed a memorandum of understanding (MoU) to list shares on the US stock Exchange, but an announcement is still to come.

VNG specializes in the publication of online games and this remains its main source of revenue. In recent years it has invested in many new companies, such as the Zalo app, payments, e-commerce, and advertising.

In 2018, VNG recorded revenue of VND4.3 trillion ($185.2 million), roughly the same as in 2017. Pre-tax profit, however, fell sharply, from VND938 billion ($40.4 million) to VND347 billion ($14.9 million), primarily because the company spent a lot of money on sales activities.

It lost VND44 billion ($1.9 million) in the fourth quarter of 2018 after a long period of continuous profit in the several hundred millions of dollars each quarter.

VNG's revenue and profit, 2016-2018 (Unit: $ million).

Hai Phong to invest VND6.24 trillion in road infrastructure

A new flyover in the northern port city of Hai Phong. 

The government of Hai Phong has approved more than VND6.24 trillion (US$268.32 million) to finance 11 key road infrastructure projects to be implemented over the next two years.

Under a plan adopted by the port city’s councillors on March 26, a series of reinforced-concrete and steel bridges will be built to replace ferry services and pontoon bridges as well as small and weak bridges.

In addition to the bridges, several new roads will also be constructed to upgrade Hai Phong’s infrastructure, helping to realise the Politburo’s resolution on developing Hai Phong by 2030 with a view to 2045.

Specifically, the Rao I Bridge will be rebuilt with a length of 215 metres and width of 28 metres at a cost of VND488 billion while a pontoon bridge over the Hoa River will be replaced with a new bridge costing nearly VND186 billion (US$7.99 million).

The new 1056-metre-long Dinh Bridge and 536-metre-long Quang Thanh Bridge will be constructed at the respective costs of VND277.7 billion (US$11.94 million) and VND398.6 billion (US$17.14 million).

The city will also build a new 9.8-kilometre motorway to connect the Lang Am Bridge in Vinh Bao district with the coastal highway, the bridges crossing the Thai Binh and Chanh Duong Rivers and a road along the Chanh Duong River, with total costs of VND1,389 billion (US$59.72 million).

Other projects include construction of three roads surrounding Aeon Mall, a 15-kilometre road in Kien Thuy district, expansion of the coastal road and infrastructure for a resettlement area north of the Cam River.

The projects will be carried out in 2019 and 2020.

Effectively exploiting geographical indications

Recently, the National Office of Intellectual Property of Vietnam under the Ministry of Science and Technology (MoST) has granted protection certificates to geographical indications Huong Son deer antlers (Ha Tinh province) and Cat Lo custard apple (Ba Ria - Vung Tau province), raising the total products protected by domestic geographical indications to 73. According to the MoST, recently, intellectual property development has been a concern and invested in by localities.

Most of Vietnam's famous agricultural products have been protected by geographical indication registration. The geographical indication has affected the perception of businesses and people about the reputation and value of products. Therefore, the value and selling price of protected products tend to increase, many products’ price even increases from 50% to 100%, such as: Vinh orange in Nghe An province, Meo Vac mint honey in Ha Giang province, and Dai Hoang ‘chuoi ngu’ (king bananas) in Ha Nam province.

The management agency has also implemented many activities to support the protection and management of geographical indications, contributing to improving the value and increasing the competitive advantage of products in the market. Among protected geographical indications, Luc Ngan litchi (Bac Giang province), Binh Thuan dragon fruit and Buon Ma Thuot coffee (Dak Lak province) are geographical indications which are selected for registration to Japan.

With the registration of geographical indications abroad, Vietnam's agricultural products are protected, having a basis to handle rights infringement and having the opportunity to increase export output. In addition, the symbol of national geographical indications is also being built to identify the national brand for agricultural products and as a tool to promote and commercialise products bearing Vietnam's geographical indications on the international market.

However, the development and commercialisation of products bearing geographical indications are facing many difficulties, beyond the ability of localities and the organisation on managing geographical indications. Geographical indications are mostly raw products, so it is necessary to have processing technology to increase value and meet export requirements. For example, in the process of building geographical indications in Japan, the Association of Luc Ngan Litchi Production and Consumption regretted that the dried fabric products were not selected for export because of the use of coal drying technology. Luc Ngan litchi growing area is in desperate need of processing enterprises with modern drying technology to increase the value of products. Meanwhile, enterprises investing in Vinh orange cultivation for many years have not found technology to extend the time to preserve oranges. Ngoc Linh ginseng (Vietnamese ginseng) has not been able to develop and expand the growing area because of the lack of technology and the process of producing ginseng seedlings.

Besides, the locals are anxious to be supported with the labeling of Ngoc Linh ginseng products by barcode and registering Ngoc Linh ginseng in big markets, such as EU, Japan and the US, China and Korea but support procedures are still delayed. Huong Son deer antlers has just been granted geographical indications, so it is necessary for the authorities to remove deer from the list of common forest animals and add them to the list of livestock to develop the brand, especially in foreign markets.

The registration of geographical indications protection is only the first step to establish ownership and legal factors related to local specialties. In order to develop sustainably, it is necessary to have coordination between ministries, including the MoST, the Ministry of Agriculture and Rural Development, and the Ministry of Industry and Trade in building and managing geographical indications, especially in connecting science and technology with production and product development to meet local and business requirements.

Vietjet offers promotional tickets to Japan every Wednesday

Vietjet is offering promotional tickets priced from zero VND every Wednesday on its all routes between Vietnam and Japan.

The promotion is applied from now to April 24, 2019 to mark the carrier’s new route between Ho Chi Minh City and Tokyo (Narita). The travel period is from April 1 to December 31, 2019.

The Ho Chi Minh City (Vietnam) – Tokyo (Narita) route will operate daily return flights from July 12, 2019. Flying time is around six hours per leg. The flight departs from Ho Chi Minh City at 00:05 and arrives at Tokyo at 08:00. The return flight takes off from Tokyo at 09:00 and lands in Ho Chi Minh City at 13:05.

With a network comprising 39 domestic routes and 69 international routes, Vietjet currently operates around 400 flights daily, carrying more than 65 million passengers to date. 

Canadian firms eye high-tech agro investment in Danang

Many Canadian firms have praised the central city of Danang for its improved competitive edges and incentives that it offers to investors, while expressing their interest in making investment in across many fields, including construction, hi-tech agriculture, and education.

Canadian firms set high hopes for investment in fields prioritized by Danang city, including hi-tech agriculture, food processing, education, and IT.

The information was heard at a March 26 seminar held by the municipal People’s Committee to promote Canadian investment inflows in the central city.

Local officials said that the coastal city has spared no efforts to improve infrastructure system and human resources, as well as has offered preferential investment policies with the hope of luring additional foreign investments, including those from Canada.

The city managed to develop the Danang Hi-Tech Park and the first phase of an IT park, while several new industrial parks for small and medium-sized enterprises are ready to welcome investors.

Ho Ky Minh, Vice Chairman of the municipal People’s Committee, noted that investment attraction remains a focus of the city in 2019. 

Bryon Wilfert, Chairman of Canada Trade Link, stressed that both Vietnam and Canada are the signatories to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which is expected to give a boost to bilateral trade between the two countries.

Wilfert highlighted Danang as a dynamically developing city, adding that Canadian firms put high hopes on investment in the fields prioritized by the municipal authorities, including hi-tech agriculture, food processing, education, and IT.

Statistics from the local authorities indicate that Danang is now home to more than 700 foreign-invested projects with a total investment of US$3.55 billion. Of which, 9 projects invested by Canadian firms are totally valued at US$1 million.

Long An Province seeks funds for transport projects

The HCM City- Trung Lương expressway through Long An Province.

The Mekong Delta province of Long An has asked the Ministry of Transport to provide funds for transport infrastructure projects including N1, N2, and No.62 national route projects.

The proposals were made at a meeting held by the Ministry of Transport and the provincial authority on Monday about transport management and infrastructure in the provincial area.

It also asked for approval for an expressway project through HCM City-Long An-Tiền Giang Province, and to allow the province to use land along Belt Ring Road No.2 and No.3 project to call for investment.

In addition, the province asked the ministry to dredge Soài Rạp River to allow big vessels to enter the province’s port.

At the meeting, Minister of Transport Nguyễn Văn Thể considered all the proposals of the province and directed units to prioritize research and funding for N1, N2, and No.62 national route projects.

In addition, the ministry has directed units to carefully inspect and propose investment for projects such as Belt Ring Road No.2 and No.3, and HCM City- Long An- Tiền Giang expressway, which play an important role in socio-economic development of the province and nearby cities.

According to the province’s report, the waterway and road transport system of the province has contributed to the socio-economic development of the province and the Cửu Long (Mekong) Delta region.

However, the transport system in the area still has many shortcomings.

At the meeting, the province’s authority said the section of the national road project passing through Long An was behind schedule, and some roads were in poor condtion.

In addition, the intersections which connect the province and HCM City on National Route No.1 and No.50 were small and led to traffic jams.

These shortcomings hindered the socio-economic development of the provinces and cities in the region.

HDBank unveils $215m credit package to oil retailer

     

 

HDBank is offering VND5 trillion worth of loans to petroleum stations. – Photo courtesy of HDBank

 HDBank has launched a credit package for petrol stations of Vietnam National Petroleum Group and PetroVietnam Oil Corporation comprising low-interest loans worth around VND5 trillion (US$215 million).

It targets retailers and agents in the petroleum industry looking for loans on easy terms, especially Petrolimex and PVOIL.

A petroleum station can get an unsecured loan of up to VND1 billion at 7.2 per cent rate of interest, while an agent can borrow up to VND5 billion.

HDBank has given loans to around 75 per cent of petroleum stations that have applied, and does not charge fees on payments made to Petrolimex and PVOIL.

HDBank has been running programmes to support the business community, including the solar energy sector. 

Viet Nam has untapped potential in bird’s nest production, export

     

 

Representatives of Viet Nam Bird’s Nest Promotion and Market Development Group Corporation and Southeast Edible Bird Nest Capital (Xiamen) Industrial Development Co., Ltd sign a contract for exporting bird’s nest to China. 

 Viet Nam has great potential in farming swifts for their edible nests, but authorities should make clear zoning plans and regulations related to quality standards, farming and processing, delegates told a forum in HCM City on March 26.

According to Nguyen Van Trong, deputy general director of the Crop Production Department, the swift nest industry has developed strongly in Southeast Asian countries, especially Malaysia, Indonesia, the Philippines, Viet Nam, and Thailand.

In Viet Nam, swifts are bred in 42 provinces and cities and nearly 68 tonnes of nests are produced annually and increasing.

They are exported to many countries and territories including Hong Kong, China, the US, Australia, and New Zealand for US$100-125 million annually.

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said the swift nest industry offered high economic value.

“According to local and international experts, Viet Nam’s bird’s nests have very high quality.

“China has huge demand for bird’s nests. Many large Chinese enterprises want to find long-term Vietnamese suppliers. This offers opportunities to Vietnamese firms.”

Zhang Yaqin, president of the Guangdong Birds’ Nest Industry Association, said China was the largest market for edible bird’s nest.

Imports that received certificates from the Chinese Academy of Inspection and Quarantine (CAIQ) and with traceable origins went up from 3.09 tonnes in 2014 to 84 tonnes in just the first 10 months of last year.

Trong said the industry offered high economic value but its development had been unplanned. "There is no master plan for the industry, and businesses do not pay much attention to developing brands for their products," he said.

"Vietnamese businesses mainly export bird’s nest in raw material, earning low revenues," he added.

Tran Phuong Tuan, deputy chairman of the Vietnamese Swiftlet Farming Association, said companies had not invested in processing to improve quality or add value.

At a forum on improving bird’s nest quality in line with market demand, Tuan and other delegates urged the Ministry of Agriculture and Rural Development to soon frame regulations for quality and make zoning plans for the industry.

According to YiNing Luo, vice president of the China Medical Pharmaceutical Materials Association’s bird’s nest branch, and president of the Southeast Edible Bird Nest Capital (Xiamen) Industrial Development Co., Ltd., China has very strict regulations on importing bird’s nest, especially unprocessed.

Most Vietnamese bird’s nest products were imported to China through unofficial channels that when it strengthened inspections, the bird’s nest industries in both countries were affected, he said.

Therefore the two countries needed to sign a protocol for official import of bird’s nest products from Viet Nam to China, he said.

He said his company, which specialises in processing raw bird’s nest, would continue to help promote official exports from Viet Nam to China.

At the forum, the Viet Nam Bird’s Nest Promotion and Market Development Group Corporation was launched and it signed an agreement with Southeast Edible Bird Nest Capital (Xiamen) Industrial Development Co., Ltd to export bird’s nests to China. 

New committee should develop capital, not trade it

     

 

Deputy PM Hue addresses a working session with the Committee for Management of State Capital at Enterprises in Ha Noi on Tuesday.

 The function of the Committee for Management of State Capital at Enterprises (CMSC) was not trading State capital but to organise and develop State capital, said Deputy Prime Minister Vuong Dinh Hue.

Hue made the statement at a working session with the CMSC in Ha Noi on Tuesday.

This was the first official meeting between CMSC with a Government leader since the committee was established in September 2018, with the aim of improving the efficiency of the use of State capital to enhance the competitiveness of the whole economy.

It has one chairperson and at the most four vice chairpersons appointed by the Prime Minister. Attending the meeting were also leaders of ministries, branches and officials of the Committee.

Hue, who is also head of the Steering Committee for Innovation and the Development of Businesses, said that there were many difficulties in the committee’s operation and in State capital management.

He asked ministries, agencies and committees to identify the remaining obstacles and requirements to resolve them quickly.

Agencies should also co-operate to solve problems arising in management and administration, such as organisation, personnel, assets and capital issues, he said.

Deputy Chairman of the State Capital Management Committee Ho Sy Hung said the problems that the committee was facing included authorization to make investment decision, public investment, regulations on the management of transport infrastructure, real estate restructuring, valuation of intangible assets of enterprises and inspection and supervision of enterprises.

In the short term, Deputy Prime Minister Vuong Dinh Hue said the CMSC should focus on dealing with 12 loss-making projects under the management of the Ministry of Industry and Trade, and approving the production and business plans of 19 State-owned economic groups and corporations put under the management of the committee, with a focus on comprehensive restructuring of finance, personnel and investment.

SOEs should put an emphasis on key areas such as national defense, security and essential areas that private sectors were not involved in, and divest capital from other areas in which SOEs were performing effectively, Hue said.

The Deputy PM also asked ministries and agencies to co-operate with the committee to fulfill the common goal of organising and developing State capital in enterprises.

According to the 2018 decree guiding its establishment, the committee is responsible for managing State capital in enterprises where the State holds a 100 per cent stake and in joint stock companies and limited liability companies with multiple members in which the State has invested capital.

The CMSC currently manages 19 State-owned economic groups and corporations. According to consolidated financial statements by December 31, 2017, the total value of State equity in these 19 groups and corporations reached more than VND1 quadrillion (US$43 billion) and the total value of assets was VND2.3 quadrillion.

The aforementioned 19 enterprises are run by five ministries. Topping the list is the State Capital Investment Corporation (SCIC) under the management of the Ministry of Finance. The remaining 18 SOEs are managed by the ministries of Industry and Trade (MoIT), Transport (MoT), Agriculture and Rural Development (MARD), and Information and Communications (MIC).

Most of the names on the list are enterprises under the management of MoIT and MoT, comprising of six groups and six corporations.

Hanoi reports 6.99 percent GDP growth in Q1

Nhat Tan bridge in Hanoi 

Hanoi has recorded a GDP growth rate of 6.99 percent in the first quarter of this year, equivalent to the same period in 2018, it was reported at a meeting of the municipal People’s Committee on March 26.

The service sector expanded by 7.08 percent in the quarter, while the industry-construction sector grew by 7.13 percent, and the agro-forestry-fisheries by 2.57 percent.

According to Director of the city’s Department of Planning and Investment Nguyen Manh Quyen, there was a surge in the inflow of foreign investment into Hanoi, with 4.04 billion USD worth of direct and indirect investment, a 10-time increase year on year.

The city collected 68.1 trillion VND (2.92 billion USD) for the State budget in the period, equivalent to 28.6 percent of the estimate, and up 30.3 percent year on year.

However, several sectors experienced a growth rate lower than the same period last year, including industrial production, goods retail sale, import-export and tourist number, while the consumer price index showed a rising trend.  

The municipal authorities are concerned about the spreading African swine fever, which can affect agriculture and tourism in the time ahead.

To address the arising problems, the People’s Committee required agencies and sectors to continue to implement effectively 76 tasks and measures set by the Plan of Actions No 12/Ctr-UBND on socio-economic development and budget estimates in 2019.

The city will press on with strong measures to improve the investment and business environment and enhance the city’s competitiveness.

In the second quarter, the city will build and implement a plan on a smart control centre as a step in building a smart city, and expanding the digitalisation of public services.

Shrimp businesses advised to increase competitiveness

Processing shrimp for exports 

Shrimp enterprises should seek ways to increase competitiveness to realise the sector’s export target of 4.2 billion USD in 2019, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Businesses need to increase the quality of their products to international standards and use communication strategies to encourage customers in the Western and Eastern Europe to buy shrimp certified by Aquaculture Stewardship Council (ASC).

Processing and export firms should make use of free trade agreements (FTAs) to reach the projected export turnover of 1 billion USD in Europe.

The combined export turnover in the US, Japan, the Republic of Korea and China is expected to hit 3 billion USD. 

Besides choosy markets, businesses see China as a large consumer of Vietnamese shrimp. However, to export to China, they must meet the higher quality criteria set by the neighbouring country.

Deep processing is considered an effective solution for shrimp exporters given fiercer competition from India and Ecuador.

Vietnam is home to nearly 100 shrimp processing plants with an average annual capacity of about 500,000 – 700,000 tonnes. 

Last year, the shrimp sector recorded a year-on-year decline of 7.8 percent to 3.6 billion USD in export value.

Q1 foreign direct investment inflow hits four-year high

Foreign direct investment (FDI) registered in Vietnam during the first quarter of 2019 hit the highest level since 2016, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

As of March 20, foreign investors had registered 10.8 billion USD in new and additional capital and capital for buying shares of domestic firms, up 86.2 percent year-on-year.

This included 3.82 billion USD for 785 new projects, rising by 80.1 percent. However, capital pumped into existing projects, at nearly 1.3 billion USD for 279 existing ones, was equal to only 72.5 percent of the figure in the corresponding period last year. About 5.68 billion USD, or 52.6 percent of the total figure, was registered to buy shares, three times the figure of one year ago.

Foreign investors poured money into 18 sectors, with 8.4 billion USD or 77.7 percent channelled into processing and manufacturing. Real estate (778.2 million USD) and science-technology (383.2 million USD) came second and third in terms of FDI attraction. 

The FIA said 74 countries and territories invested in Vietnam in the first quarter. Hong Kong (China) topped the list with 4.4 billion USD, followed by Singapore (1.46 billion USD), the Republic of Korea (1.3 billion USD), China (1 billion USD), and Japan (700 million USD).

Meanwhile, FDI capital flowed into 49 provinces and cities. Hanoi was the biggest destination, attracting over 4.15 billion USD. Ho Chi Minh City and Binh Duong province followed with 1.57 billion USD and 625.6 million USD, respectively.

Between January and March, 4.12 billion USD of FDI projects were disbursed, up 6.2 percent from the year previous.

According to the FIA, the foreign-invested sector exported 41.45 billion USD worth of goods, including crude oil, during the three months, rising 2.7 percent year-on-year and accounting for 70.8 percent of Vietnam’s total exports. Excluding crude oil, the figure stood at 40.95 billion USD, up 2.8 percent and making up 70 percent of the total shipments.

The FDI sector recorded a trade surplus of 7.57 billion USD (including crude oil) and 7.06 billion USD (excluding crude oil).